The Pakistan Credit Rating Agency Limited
09-Apr-24
Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
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PACRA Maintains Stability Rating of AWT Income Fund
| Rating Type | Stability Rating | |
|
Current (09-Apr-24 ) |
Previous (13-Oct-23 ) |
|
| Action | Maintain | Maintain |
| Long Term | A+(f) | A+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
AWT Income Fund (or the "Fund") is a moderate risk profile Fund. The objective of the Fund is to generate competitive returns by investing in short to long term debt instruments and securities. The fund is in line with its investment objectives, will invest in authorized investments. The Fund had allocated ~23% in T‐Bills, ~14% in TFC/Sukuks rated AA+ , ~34% in cash rated as A+, ~10% in Commercial Paper/STS rated as AA, ~17% in PIBs, whereas ~2% in others. The duration of the Fund stood at 111 days at the end Dec'23, exposing the Fund low interest rate risk. The WAM of the Fund stood at 753 days at the end Dec'23, exposing the Fund high credit risk. However, credit risk is manageable due to investment in Govt securities. The unit holding pattern of the Fund concentration was ~49% represented by top 10 investors; giving rise to a moderate level of redemption pressure.
Going forward, the Fund ensures to diversify its exposure. Any material changes in the investment policy and/or compliance with the devised rating criteria for the assigned rating would have an impact on 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. Sajjad Anwar. He is a 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 Company's six-member Board of directors includes five director and the CEO. With overall assets under management of PKR 14.433 bln at the end Dec'23, AWT Investment Limited now managing four conventional funds and two shariah complaint funds