Lahore, September 06, 2021 (PPI-OT):AKD Islamic Income Fund’s (or the “Fund”) rating reflects the Fund’s moderate credit risk profile emanating from its investment strategy to invest in good credit quality investment avenues with sound liquidity. At end Jun’21, ~36% of the Fund’s assets were allocated to bank (rated ‘AA’), ~26% in Sukuks and ~34% in spread transactions. As per the investment policy, the Fund can invest up to 75% in sukuks and 40% in spread transactions, the current strategy is in line with the investment policy. The net assets of the Fund has shown an increase of ~100% and stood at ~PKR 724mln. The Fund consistently manage to stabilize the returns during FY21 and beat the benchmark along with industry average.

The unit holding pattern of the fund emanates moderate liquidity risk as top 10 investors represent ~88% of the fund’s assets. The Fund weighted average maturity (WAM) stood at 252 days and the duration is 34 days. Going forward, the fund intends to maintain/increase its current exposure in bank placements and Sukuk or/and TFCs. Material changes in the Fund’s asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the 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