PACRA Maintains Stability Rating of AKD Islamic Income Fund

Business News English

Lahore, October 26, 2020 (PPI-OT):The rating reflects the fund’s moderate credit risk profile emanating from its investment strategy to invest in good credit quality investment avenues with sound liquidity. At end Jun’20, ~77% of the fund’s assets were allocated to bank placements (‘AA’ rated), whereas ~16% to Sukuk/TFCs and 6% to commercial papers. The unit holding pattern of the fund emanates moderate liquidity risk as top 10 investors represent ~83% of the fund’s assets.

Going forward, the fund intends to maintain its current exposure in bank placements and Sukuk/TFCs. Material changes in the fund’s asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect 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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