The Pakistan Credit Rating Agency Limited
09-Apr-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 Money Market Fund
| Rating Type | Stability Rating | |
|
Current (09-Apr-24 ) |
Previous (13-Oct-23 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA+(f) | AA+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
AWT Money Market Fund (or the "Fund") is a low risk profile fund. The objective of the Fund is to generate competitive returns by investing in short term Government Securities and Debt instruments. The assigned rating reflects the Fund's low credit risk profile emanating from its investment strategy. The Fund had allocated ~61% in T‐bills, ~2% in cash and placements rated as AA, ~16% in Commercial Paper/ Short term Sukuks rated as AA, ~20% in TDR rated as AA+ and ~2% in others at the end Dec'23. The WAM stood at 80 days at end of Dec'23, limiting the credit risk of the fund. The Duration stood at 74 days at end Dec'23, limiting the interest rate risk of the fund. The top 10 investors concentration of the Fund, at end Dec'23 was ~84.98%, giving rise to very high redemption pressure ;however the risk is manageable due to sufficient liquidity available.
Going forward, 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.