The Pakistan Credit Rating Agency Limited
20-Sep-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-Sep-24 ) |
Previous (20-Mar-24 ) |
|
| 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 profile Fund. The Fund aims to provide income enhancement and preservation of Capital by investing primarily in financial sector, TFCs/Sukuk, Bank deposits and instruments issued by Government Securities. The credit quality of the Fund was ~91.64% in A+, ~5.83% in AAA/govt Sec and ~2.53% in others. The Fund had allocated 81% in Bank in the form of cash and placements, whereas the Fund had allocated ~10.15% in Commercial Papers/Short Term Sukuks, ~5.06% in PIB’s, ~1.59% in TFC/Sukuks and ~2.19% in other assets. The duration of the Fund stood at 103 days at the end Jun’24, exposing the Fund to moderate interest rate risk. The WAM of the Fund stood at 150 days at the end Jun’24, exposing the Fund to moderate credit risk. The top 10 investors concentration of the Fund stood at ~43.82% at the end Jun'24, giving rise to a moderate level of redemption pressure.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the ratings.
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. AWT Investment Limited now managing four conventional funds and two shariah complaint funds.With overall assets under management of PKR 29.778 bln at the end Jun'24.