Lahore, September 06, 2021 (PPI-OT):The rating of AKD Aggressive Income Fund (or the “Fund”) reflects the Fund’s moderate risk profile. It is a dedicated Fund that focuses primarily on fixed income securities and instruments. The Fund is restricted to invest in avenues having rating not less than “A+” (Single A Plus). The credit quality is expected to remain strong.

Investment in these securities would also improve the liquidity profile of the Fund, given relative ease in transactions. At end Jun’21, ~10% of Fund’s assets were invested in T-Bills, ~33% in Sukuk/TFCs, whereas ~38% are placed in spread transactions. The unit holding pattern of the Fund reflects high concentration risk as top 10 investors represent ~88% of the Fund’s assets. The WAM of the fund is 526 days and the duration is 69 days.

Going forward, the fund intends to maintain its exposure in government securities and maintain or/and increase allocation towards Sukuk/TFCs, given the avenues available for investing. Material changes in the Fund’s asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect its rating.

For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com