Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained its stability rating for the AKD Aggressive Income Fund (AKD AIF), a medium-risk investment fund aimed at providing investors with a reliable method to invest in a varied portfolio of fixed-income securities designed for consistent returns and capital preservation.

According to The Pakistan Credit Rating Agency Limited, the AKD Aggressive Income Fund’s asset allocation as of the end of June 2024 included approximately 43.0% in bank placements, 26.1% in TFCs/Sukuk, 19.3% in T-Bills, 9.32% in commercial papers/short-term Sukuk, and 2.3% in other assets. The credit quality of the fund was notably diverse, with about 48.0% rated AA, 33% rated A, and the remainder in government securities or AAA-rated avenues, indicating a mix of high and moderate credit risk exposure.

The report highlighted that the fund’s Weighted Average Maturity (WAM) was 141 days, positioning it towards higher credit risk, while the duration of 79 days suggests moderate interest rate risk. A significant point of concern cited was the high level of investor concentration, with the top ten investors representing about 98.77% of unit holdings, which could lead to substantial redemption pressure. However, PACRA noted that the fund manages this risk by maintaining adequate liquidity levels.

PACRA also noted that any future changes to the fund’s investment policy or adjustments in the rating criteria could influence the stability rating moving forward.