PACRA Upgrades the Asset Manager Rating of AWT Investments Limited.

The rating upgrade of AWT Investments Limited (or the “AMC”) reflects sustained growth in assets under management with a strategic focus on the retail segment, a granular investor base and improved fund performance. The growth in AUM was supported by the AMC’s strategic focus on expanding its retail franchise and strengthening its digital capabilities under experienced and forward-looking leadership. The AMC strengthened its retail footprint through increased brand visibility and enhanced investor awareness campaigns across key cities. As of 9MFY26, retail investors stood at ~45% of the AMC’s investor base, which is well above the larger players of the industry. With the growth in AUM, the concentration of its top 10 investors declined to ~27%, signifying improved investor granularity and a correspondingly lower concentration risk. Furthermore, the digital infrastructure of AMC has also been strengthened through enhancements to its mobile application, introduction of digital account opening facility, and increased automation of customer transactions during FY26. These initiatives are expected to enhance customer convenience, strengthen operational efficiency and facilitate the scalable expansion of the retail franchise, thereby underpinning its long-term growth trajectory. AWT Investments Limited maintained an overall industry market share of ~2%, while its share within the Islamic asset-management segment stood at ~3%. As of 9MFY26, the industry’s AUM stood at PKR 4.3trln (SPLY: PKR 3.8trln). The money market category held the largest share at 56%, followed by the income category at 25% and the equity category at 19%. During FY26, the AMC completed the conversion of its conventional product suite into Shariah-compliant offerings, strengthening its positioning within the Islamic asset-management segment. AWT Investments Limited’s fund portfolio delivered competitive performance, with majority funds surpassing their respective benchmarks. AWT Islamic Income Fund continues to account for a significant proportion of total AUM of AMC; therefore, greater diversification across fund categories remains desirable. However, its share of the pension-fund market remains modest; therefore, sustained growth in VPS segment and improvement in the AMC’s pension-market share would strengthen its competitive position. During 9MFY26, the financial matrix reveals that the management fee increased significantly by 47% and stood at PKR 321mln (SPLY: PKR 219mln). The AMC reported a dip in net profit amounting to PKR 124mln in 9MFY26 (SPLY: PKR 146mln) primarily due to an increase in expenses and a decrease in investment income. At the end of 9MFY26, the equity base of the AMC increased to PKR 982mln (FY25: PKR 858mln), wherein, in addition to internally generated profits, the sponsor's support in the form of fresh equity remains critical. Going forward, the AMC plans to strengthen its market position through sustained fund performance, enhanced brand visibility, deeper investor awareness and expansion of its sales and distribution network across key cities. The strategy also includes appointments to key senior-management positions and further upgradation of technology systems to support AUM growth and improve business scalability. Furthermore, the proposed acquisition of an 80% stake of AMC by Fauji Foundation, subject to requisite approvals, is expected to strengthen the AMC’s sponsorship profile and support sustainable AUM growth through enhanced financial and institutional backing.
The rating is dependent on the AMC’s ability to continuously strengthen its market position. At the same time, stability in key human resources, and success of initiatives to increase AUM will remain crucial for the rating.

About the Entity
AWT Investments Limited, a public unlisted Company incorporated in August 2011. The AMC's Board of Directors consists of six members, including the Chief Executive Officer. Maj. Gen. Syed Anis Akbar (Retd.) serves as Chairperson of the Board. With 34 years of extensive experience, he also serves on the boards of various businesses under the Army Welfare Trust. Mr. Sajjad Anwar, CFA, serves as the CEO of AWTIL. The anticipated ownership transition may lead to changes in the composition of the Board and senior-management team in near future.