PACRA Maintains Stability Rating of AKD Islamic Income Fund

AKD Islamic Income Fund ('AKDISIF' or 'the Fund') is a medium risk profile fund. The objective of AKD Islamic Income Fund (AKDISIF) is to provide investors with an investment vehicle that strives to enhance capital coupled with regular halal income by investing in Shariah Compliant income investments. As of Jun’26, the Fund’s Assets Under Management (AUM) stood at ~PKR 1.96bln, down from PKR 2.03bln as of Dec’25, reflecting a marginal contraction in fund size during the period while maintaining the Fund’s investment strategy. In terms of asset allocation, approximately 37.73% of the portfolio was invested in GoP Ijarah Sukuk, ~24.83% in Cash, ~11.93% in Sukuk, and ~13.05% in Short Term Sukuk, with the remaining ~12.46% allocated to other instruments including receivables. The allocation reflects a diversified Shariah-compliant portfolio with meaningful exposure to sovereign-backed Islamic securities, corporate Sukuk, and liquid assets. From a credit quality perspective, ~38% of the assets were invested in Government Securities, ~12% in AA rated avenues, ~12% in A+ rated instruments, ~8% in AA-, ~5% in A1+, ~8% in A1, ~3% in AAA rated avenues, ~2% in Government Guaranteed Securities, and the remaining ~12% in unrated avenues, indicating moderate credit risk exposure with diversification across various rated categories. As of Jun’26, the Fund’s WAM stood at 509 days, while duration stood at 78 days, reflecting relatively longer-tenor exposures but moderate sensitivity to interest rate movements. The unit holding pattern remained highly concentrated, with the top 10 investors accounting for ~82.24% of total holdings, indicating higher redemption pressure. However, the Fund’s meaningful cash allocation provides some liquidity cushion against potential redemptions. In terms of performance, the Fund delivered an annualized return of 17.27% as of Jun’26, compared to the benchmark return of 9.60% and peer average return of 11.43%, indicating significant outperformance relative to both its benchmark and comparable funds.
Going forward, any material changes, in the investment policy, and/ or compliance with rating criteria for the assigned rating would have impact on the ratings.

About the Entity
AKD Investment Management Limited commenced its operations in September 2004. The Company is registered as an Asset Management Company under the Non-Banking Finance Companies Rules, 2003. The Company is sponsored by AKD Group Holdings (Private) Limited [Formerly: Aqeel Karim Dhedhi Securities(Private) Limited] (99.97% ownership). The Board of Directors of the Company comprises seven members, including the CEO Mr. Imran Motiwala, who has been serving as the Chief Executive Officer of AKD Investment Management Limited since 2009. The Company is currently managing eight open-end funds with assets under management of ~PKR 14,202mln at the end of Jun '26.