The Pakistan Credit Rating Agency Limited
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Madiha Sohail

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PACRA Maintains Stability Rating of AWT Money Market Fund

Rating Type Stability Rating
(07-May-22 )
(09-Nov-21 )
Action Maintain Maintain
Long Term AA+(f) AA+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

AWT Money Market Fund (or the "Fund") is the low risk profile. At Dec'21, the Fund had allocated ~13.8% in bank placements rated ‘AA’ and above. While ~84% investment in the T-Bills. During CY21, the credit quality of the Fund remained strong and compliant with rating criteria for the assigned rating. The duration of the Fund was 71 days exposing the Fund to medium interest rate risk at end Dec'21. The WAM of Fund is 71 days limiting exposure to credit risk. The top 10 investors concentration of the Fund, at Dec’21 was ~94.5% giving rise to high redemption pressure.
Going forward, the Fund aims to invest in Market Treasury Bills, bank placements and cash and bank deposits. All investments/placements will be in avenues rated "AAA"/Government Securities. Risk profile of the Fund will be monitored with the above stated investment policies. Material changes in the funds asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.

About the Entity
AWT Investments Limited is a public unlisted company, incorporated in 2011. It is a Non-Banking Finance Company, licensed by the Securities and Exchange Commission of Pakistan to manage open and closed-end funds and Investment Advisory Services. The Company is a wholly-owned subsidiary of Army Welfare Trust. The Board of Directors of the Company comprises five members. The CEO of the Company Mr. Salman Haider has recently resigned. Mr. Sajjad Anwar has joined as CEO of the Company in Mar'22. Mr. Anwar is CFA charter holder and has over 21 years of experience that involves Equity Research, Portfolio Management, Investment Advisory, Risk Management, and Finance & Accounts. For the last 15 years, he has been working in the Fund Management Industry. Before becoming CEO at AWTIL, he was performing the role of Chief Investment Officer at NBP Funds.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.