PACRA Upgrades Stability Rating of AKD Islamic Income Fund - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- September 05, 2022 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

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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'22, 59.4% of the Fund's assets were allocated to Sukuks ('A+' rated and above), 37.5% to Cash with banks rated A+ and above, whereas 3.1% were others. As per the investment policy, the Fund can invest up to 75% in sukuks, the current strategy is in line with the investment policy.

The net assets of the Fund has shown an increase of 26.1% and stood at PKR 893mln (Dec'21: PKR 708mln). The Fund consistently managed to stabilize the returns during FY22 and beat the benchmark along with industry average. The unit holding pattern of the fund emanates redemption risk as top 10 investors represent 70.1% of the fund's assets. The fund should diversify its investments to minimize...