Lahore, March 21, 2023 (PPI-OT): AKD Investment Management Limited has recently launched AKD Islamic Daily Dividend Fund (the “Fund” or “AKDIDDF”) to capture the growing market share and to further diversify its fund slate. AKDIDDF is a low risk open ended shariah compliant money market fund. The objective of the Fund is to provide competitive return in the form of daily dividend by investing in low risk and highly liquid Shariah compliant money market instruments. The ratings reflect the Fund’s moderate credit quality and liquidity profile.
As per the investment policy, the Fund can invest in AA and above rated avenues with maximum maturities up to 6-months. At the end Feb’23, the exposure in Commercial Papers/Short Term Sukuk was 14.51% and Cash was 84.13% with AA rated Islamic Bank. At end Feb’23, the Fund’s weighted average time to maturity and duration stood at 27 days depicting very low credit risk and interest rate risk. The unit holding pattern of the Fund reflects high concentration as top 10 investors represent ~98% of the Fund’s assets emanating high redemption risk.
Going forward, the Fund intends to maintain its position in Commercial Papers/Short Term Sukuk and Cash while building position towards AAA rated avenues. Material changes in the fund’s asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect its rating. The assigned rating would remain dependent on the compliance with assigned rating criteria.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
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