Lahore, December 28, 2018 (PPI-OT): The objective of AKD Islamic Income Fund (AKDISIF) is to provide investors with an investment vehicle that strives to enhance capital coupled with regular halal income by investing in Shariah compliant income investments.
The rating reflects the fund’s moderate credit risk profile emanating from its investment strategy to invest in high credit quality investment avenues with sound liquidity. Currently, the fund’s exposure with sukuks is ~15%, while~ 62% of the fund’s assets are exposed towards banking deposits with banks rated ‘A-‘ and above. Exposure with ‘AAA’ rated banks was ~6% whereas with ‘A+’ and ‘AA’ rated banks exposure was ~62% and ~9% respectively at end-Jun 18. The unit holding pattern of the fund is concentrated with top 10 investors representing ~ 81% of the fund’s total asset which exposes the fund to a high level of redemption risk.
Going forward, the fund intends to maintain its allocation towards bank deposits. The remaining asset will be invested in Shariah-compliant good quality debt instruments. 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