PACRA Upgrades the Asset Manager Rating of AWT Investments Limited

AWT Investments Limited ("AWTIL" or the "Company") is a wholly owned subsidiary of Army Welfare Trust, a trust established for the welfare and rehabilitation of the widows and dependents of martyrs of the Pakistan Army. The rating reflects the improved positioning of AWT Investments Limited among peers operating in the asset management industry of the country. The strong Fund performance of the company was one of the leading indicators considered in the rating. The composition of AUMs reveals an increasing share of individual investors. On the technology side, the company has launched a Web portal and a Mobile App, offering a full suite of investor services with elevated customer experience. The technological developments are solidifying the retail footprints of the Company in an increasingly digitalized age. During FY24, the company recorded robust growth in AUMs clocking in at PKR 30bln (FY23: PKR 7.3bln). Consequently, the market share of the AMC enhanced to 1.1% (FY23: 0.5%). During the year, the company has strengthened its organizational structure by augmenting incumbent departments comprising Risk, Research, Compliance, and IT. The induction of experienced professionals in the team to spearhead these functions has boded well for the company and Fund performance. Group synergies have been leveraged and it is shown in the trend line. Sponsor support is a key consideration. The asset manager is planning to further diversify its product slate by launching of voluntary pension schemes by the end of 1QFY25. The Company has implemented an enhanced version of Asset Connect (Java-based) for the Mutual fund segment. During 9MFY24, the financial matrix reveals that the total income of the company enhanced to PKR 229.7mln (9MFY23: PKR 65.2mln) attributable to enhanced gain from investments clocking in at PKR 107mln (9MFY23: PKR 1.1mln) followed by management fee at PKR 73.4mln (9MFY23: PKR 21.1mln). Consequently, the company reported a net profit of PKR 48.6mln in 9MFY24 against the net loss after tax of PKR 62.3mln during 9MFY23. At end-Mar24, the equity base of the company increased to PKR 440mln (end-Mar23: PKR 291mln) owing to equity injection from the sponsor along with the internal generation of cashflows.
The rating is dependent on the Company’s ability to continuously strengthen its market position. At the same time, stability in key human resources, structured improvement in risk management framework, and success of initiatives to increase retail AUM will remain crucial for the rating. Diversification in the AUM base among various fund categories along with improvements in the overall operating platform will bode well for the Company.

About the Entity
AWT Investments Limited is a public unlisted company incorporated in August 2011 with a head office situated in Rawalpindi. The Company’s Board of Directors comprises six members including the Chairman and the Chief Executive Officer. As of end-June24, AWTIL is offering six categories of Money Market, Equity, and Income. Lt. General Nauman Mahmood (Retd.) joined as the chairman of the board of directors in February 2024. Gen. Nauman has a rich experience of 37 years and he is also present on the board of directors of different businesses of Army Welfare Trust. Mr. Sajjad Anwar CFA is the CEO of AWTIL, a seasoned Investment Professional with wide-ranging experience in the Financial Markets of Pakistan spanning over 24 years.