Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has upheld the stability rating of the AKD Islamic Cash Fund, emphasizing the Fund's low-risk profile and commitment to providing optimal returns through a portfolio of high-quality, Shariah-compliant short-term securities. The Fund's Assets Under Management (AUM) have witnessed significant growth, rising to approximately PKR 816 million as of June 2026, up from PKR 522 million in December 2025.

According to The Pakistan Credit Rating Agency Limited, the AKD Islamic Cash Fund's asset allocation strategy includes 48.3% of the portfolio in placements with banks, non-banking financial companies (NBFCs), and Development Finance Institutions (DFIs), around 40.4% in cash, 7.86% in short-term Sukuk, 0.09% in Government of Pakistan Ijarah Sukuk, and 3.32% in other instruments, including receivables. This diversified allocation underscores the Fund's liquidity with significant exposure to bank placements and cash.

From a credit quality perspective, approximately 50% of the Fund's assets are invested in AAA-rated avenues, 39% in government securities, 6% in AA-rated instruments, 3% in A1-rated avenues, and 2% in A1+ rated avenues, highlighting a robust credit quality profile. The Fund's weighted average maturity (WAM) stood at 24 days, with a duration of 21 days as of June 2026, effectively minimizing exposure to interest rate and credit risks.

The top 10 investors account for about 73.8% of the total holdings, suggesting a concentrated unit holding pattern that could lead to higher redemption pressure. In performance terms, the Fund delivered an annualized return of 10.25% as of June 2026, slightly underperforming its benchmark return of 10.46% and the peer average return of 10.55%.

The press release notes that any substantial changes in investment policy and compliance with rating criteria could impact the Fund's rating in the future.