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The Pakistan Credit Rating Agency Limited
Press Release

Date
09-Oct-24

Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Stability Rating of AWT Income Fund

Rating Type Stability Rating
Current
(09-Oct-24 )
Previous
(09-Apr-24 )
Action Maintain Maintain
Long Term A+(f) A+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

AWT Income Fund ('AWTIF' or the "Fund") is a medium 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 credit quality of the Fund was ~65.6% in Govt/AAA, ~22.7% in A+, ~8.8% in AA rated avenues while the remaining is in others . The Fund had allocated ~37.25% in PIBs, ~24.52% in bank in the form of cash and placements, ~13.45% in T-Bills, ~13.38% in TFC/Sukuk, ~8.66% in GOP Ijarah and ~2.73% in others. The duration of the Fund stood at 348 days at the end of Jun’24, exposing the Fund to high interest rate risk. The WAM of the Fund stood at 1,027 days at the end of Jun’24, exposing the Fund to very high credit risk. However, credit risk is manageable due to investment in Govt securities. At end Jun'24, the top 10 investors concentration of the Fund stood at ~51.25%, giving rise to a high 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 29.778bln at the end Jun'24.

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.