The Pakistan Credit Rating Agency Limited
08-Oct-21
Analyst
Muhammad Zain Ayaz
zain.ayaz@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
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PACRA Maintains Stability Rating of AWT Income Fund
| Rating Type | Stability Rating | |
|
Current (08-Oct-21 ) |
Previous (08-Apr-21 ) |
|
| Action | Maintain | Maintain |
| Long Term | A+(f) | A+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating incorporates the Fund's strong credit quality and sound liquidity profile, emanating from the Fund's current portfolio mix. At end Jun'21, the Fund was invested ~38% in banks rated 'A' and above, ~38% in Government-guaranteed securities (T-Bills and PIBs) and ~12% in spread transactions. The duration of the investments is ~200 days, which lowers the risk to interest rate volatility. The unit holding pattern of the fund is low concentrated with top 10 investors representing ~44% of the Fund's assets, which exposes the fund to moderate level of redemption pressure.
Going forward, the Fund intends to maintain its exposure in T-bills and PIBs. The remaining assets of the Fund will be invested in cash placements. 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.
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, including the CEO Mr. Salman Haider. He possesses over two decades of local and international experience in Investment management industry including almost 10 years on Wall Street in New York, USA.