The Pakistan Credit Rating Agency Limited
09-Oct-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 Islamic 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 Islamic Income Fund ('AWTIIF' or the "Fund") is a medium risk profile Fund. The Fund's objective is to generate competitive risk adjusted returns by investing in short, medium and long-term Shariah Compliant Fixed Income instruments. The credit quality of the Fund was ~58.52% in AA rated avenues, ~21.95% in AAA/govt Sec, whereas, ~16.9% in A+ and ~2.72% in others. The Fund had allocated 28.39% in bank in the form of cash and placements, ~27.7% in Bai Muajjal, ~26.8% in short term sukuk, 11.87% in GOP Ijarah Sukuk, ~2.03% in Certificate of Musharaka, ~0.43% in Corporate Sukuks and the remaining was invested in others. The duration of the Fund stood at 86 days at the end of Jun’24, exposing moderate interest rate risk. The WAM of the Fund stood at 198 days at the end of Jun’24, exposing the Fund to high credit risk. The top 10 investors concentration of the Fund stood at ~13.43%, limiting the redemption pressure of the Fund.
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.