PACRA Maintains Stability Rating of AKD Aggressive Income Fund

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PACRA Maintains Stability Rating of AKD Aggressive Income Fund

April 30, 2019

Lahore, April 30, 2019 (PPI-OT):AKDAIF is a dedicated fund that focuses primarily on fixed income securities and instruments. The objective of AKDAIF is to offer investors a convenient vehicle to invest in a diversified portfolio of fixed income securities/instruments that provide consistent returns with concern for the preservation of capital over the longer term.

The rating reflects the fund’s moderate credit quality and liquidity profile. At end-Dec 18, the fund has cash exposure with banks ~43% with the majority of the exposure in ‘A’ and above rated banks. The fund’s exposure towards TFCs/Sukuk represents ~38% with TFC of the bank rated ‘A-‘and’AA-‘.The unit holding pattern of the fund is highly concentrated with top 10 investors (i.e. ~96%) exposing the fund to a high level of redemption pressure. The assigned rating takes into account the fund’s overall risk appetite which exposes the fund towards a medium level of risk.

Going forward, the fund intends to maintain its exposure with the same investment avenues. The fund will invest in debt instruments with a rating not less than A-. Material changes in the fund’s asset allocation strategy, which could negatively impact the fund’s credit quality and exposure to interest rate risk, remains critical for 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: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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