Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained its stability rating for the AKD Islamic Daily Dividend Fund (AKD IDDF), affirming the fund’s low-risk profile and its focus on generating competitive returns through daily dividends. The fund primarily invests in Sharia-compliant, low-risk, and highly liquid money market instruments.

According to The Pakistan Credit Rating Agency Limited, the AKD IDDF allocates approximately 44.5% of its assets to bank placements, 37.1% to government securities, 14.6% to commercial papers and short-term Sukuk, and 3.8% to other assets. The fund’s credit quality remains robust with about 59% of investments rated at ‘AA’, 37% in government securities or ‘AAA’, and 4% in other avenues. The fund’s weighted average maturity and duration stand at 45 days, indicating minimal credit and interest rate risks as of the end of June 2024. However, the fund faces a high level of redemption pressure, with the top ten investors representing about 99.76% of unit holdings. This risk is managed by maintaining sufficient liquidity to meet potential redemptions.

The continuation of the current stability rating is contingent on any significant changes in the investment policy or the criteria used for the assigned rating.