PACRA Maintains the Stability Rating of AWT Income Fund (Formerly: PIML Income Fund).
The rating incorporates the fund's strong credit quality and sound liquidity profile, emanating from the fund's current portfolio mix. At end‐Jun'19, fund's exposure with banks was 61% with majority of exposure in 'AAA' rated bank. The remaining assets of the fund were invested with TFCs/ sukuks (i.e. 13%) with the credit rating of 'A+' and above. The unit holding pattern of the fund is highly concentrated with top 10 investors representing 44% of the fund's assets, (of which around ~20% are owned investments) which exposes the fund to low level of redemption pressure. The comfort can be drawn from the liquid nature of investments.
Going forward, the fund intends to increase its exposure inT‐bills and PIBs. The remaining assets of the fund will be placed in debt instruments. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remain critical for the rating.
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 currently managing five open-end schemes with assets under management of ~PKR 1.8 bln at end-June 2019. In the month of March 2017, Army Welfare Trust (AWT) acquired 70% shares of the company from Pak Brunei Investment Company Limited. On October 13, 2017, the Board of Directors of PBICL approved the disinvestment, remaining 30% shareholding in the company through the exercise of put option contained in shareholder’s agreement. The transaction was approved by the Commission on Mar 5, 2018, subject to completion of certain formalities. Subsequent to June 30, 2018, the remaining formalities were fulfilled and remaining shareholding of AWT Investments Limited was also transferred by PBICL to Army Welfare Trust.
The CEO, Mr. Salman Haider possesses over two decades of local and international experience in Investment management industry including almost 10 years on Wall Street in New York, USA. His experience on Wall Street included NASD licenses of series 7 and 63 along with working at reputable institutions within the investment management industry.