Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed the stability rating of the AKD Cash Fund, citing its robust investment in highly secure, short-term debt instruments that ensure both liquidity and minimal exposure to credit and interest rate risks. The Fund’s strategy focuses on maintaining a low-risk profile while aiming for optimum returns.

According to The Pakistan Credit Rating Agency Limited, “The AKD Cash Fund’s portfolio predominantly consists of government securities and AAA-rated instruments, with approximately 54.5% of its exposure in Treasury bills and 30.4% in bank placements as of the end of June 2024. The weighted average maturity (WAM) of the Fund is 37 days, effectively minimizing the likelihood of credit and interest rate issues.” The Fund’s strategic allocation aims to balance security and liquidity, crucial for managing the 56.4% investment concentration among its top ten investors, which presents a high redemption risk.

The continuation of the Fund’s current stability rating will depend on any significant alterations to its investment approach or the criteria used for its ratings evaluation.