The Pakistan Credit Rating Agency Limited
20-Mar-24
Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of AWT Financial Sector Income Fund
| Rating Type | Stability Rating | |
|
Current (20-Mar-24 ) |
Previous (20-Sep-23 ) |
|
| Action | Maintain | Maintain |
| Long Term | A+(f) | A+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
AWT Financial Sector Income Fund (or the "Fund") is a medium risk open ended income category Fund. The objective of the Fund is to provide income enhancement by investing primarily in financial sector, TFCs/Sukuks, Bank Deposits and instruments. The fund had allocated ~80.2% to bank deposits/Cash rated as A+ or AA, ~9% to PIBs rated as AAA , ~1.4% in Corporate sukuks, ~6.4% in Commercial Paper/STS rated as AA and, ~3.1% in other assets. At the end of Dec '23, the duration of the Fund was 14 days, exposing it to low interest rate risk. The Fund's WAM stood at 204 days limiting exposure to low credit risk. As of Dec'23, ~45% of the Fund's assets were held by the top 10 investors, leading moderate redemption pressure.
Going forward, the Fund ensures to diversify its exposure. While assigned rating will be dependent on the given criteria, any material changes in the investment policy or 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.