PACRA Maintains Stability Rating for AKD Islamic Daily Dividend Fund

Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed the stability rating of the AKD Islamic Daily Dividend Fund, reflecting the fund’s low-risk profile and commitment to Shariah-compliant investment strategies. The fund is designed to provide investors with competitive returns through daily dividends by investing in a range of low-risk, highly liquid money market instruments.

As of the end of June 2025, the fund’s asset allocation consisted of approximately 28.55% in cash, 49.82% in Government of Pakistan (GoP) Ijarah Sukuk, 14.77% in short-term Sukuk, and the remaining 6.85% in other instruments, including receivables. This diversified allocation underscores the fund’s strategic emphasis on maintaining liquidity and minimizing risk.

In terms of credit quality, the fund had approximately 50% of its investments in government securities, 43% in avenues rated AA, and the remaining 7% in unrated avenues as of the same date. This distribution highlights the fund’s focus on high-quality credit instruments to ensure stability and reliability for its investors.

The fund’s weighted average maturity and duration stood at 25 days at the end of June 2025, illustrating its strategy to maintain a short-term investment horizon. This approach aligns with the fund’s objective to provide daily dividends while minimizing exposure to market volatility.

PACRA has indicated that any significant changes in the fund’s investment policy or compliance with rating criteria could impact the current rating. The agency’s assessment provides a measure of assurance for investors seeking stability in a Shariah-compliant investment framework.