Press Release
JCR-VIS reaffirms the Fund Stability Rating of AKD Income Fund at BBB(f)
Karachi, December 15, 2010: JCR-VIS has reaffirmed the Fund Stability Rating of AKD Income Fund (AKDIF) at ‘BBB(f)’ (Triple B(f)).
AKDIF is an open-end fixed income scheme managed by AKD Investment Management Limited (AKDIML). There has been change at the top management level in AKDIML during FY10 and a seasoned investment professional has been appointed as the CEO. The rating action takes into account steps taken by the management to maintain the risk profile of AKDIF at a level commensurate with the assigned rating.
In line with sector trends the net asset base of AKDIF has declined over the last two years while proportion of high risk assets has increased on account of transition of further investments into lower rating grades; thus affecting the liquidity profile and credit quality of the fund. However, timely measures taken by the management have arrested decline in risk profile of the fund. This includes steps for limiting further exposure against COIs/privately issued bonds and diverting liquidity towards cash in highly rated banks and government securities. Efforts have also been made towards restructuring/recovery of non-compliant/risky investments.
AKDIF posted a positive return during FY10 as compared to the preceding year’s negative return. JCR-VIS will continue to monitor the risk profile of the fund, which would in turn depend on the level of liquidity maintained in the fund and the risk profile of its investments.
For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Mr. Zia Usmani (Ext: 507) at (+92-21) 35311861-70 (10 lines) or fax to (+92-21) 35311872-3.
Faheem Ahmad
President & CEO