PACRA Maintains Stability Rating of AKD Cash Fund

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PACRA Maintains Stability Rating of AKD Cash Fund

April 30, 2019

Lahore, April 30, 2019 (PPI-OT): The Objective of AKD Cash Fund (AKDCF) is to provide optimum returns consistent with minimal risk from a portfolio constituted of high-quality short-term securities/instruments, which will provide liquidity. The Fund will exclusively invest in highly secure (‘AA’ and above) short-term debt instruments such that the weighted average maturity of its net assets will stay below 90 days.

The rating reflects the fund’s strong credit risk profile emanating from its investment strategy to invest in high credit quality investment avenues with sound liquidity. The fund’s portfolio, at the end of Dec-18, comprises T-Bills ~72% and cash balances ~13%. Fund’s portfolio duration of 42 days results in low exposure towards interest rate volatility. The unit holding pattern of the fund is concentrated with the top10 investors representing ~74% of the portfolio, however, fund has mitigated the redemption risk by staying highly liquid in cash and T-Bills.

Going forward, the rating remains dependent on maintaining at least 50% allocation towards government securities or AA+exposure with portfolio duration not exceeding 60 days. Meanwhile, the remaining assets of the fund must be placed with the scheduled banks having credit ratingsof ‘AA’ and above.

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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