PACRA Upgrades the Asset Manager Rating of AWT Investments Limited.

AWT Investments Limited ("AWTIL" or the "AMC") is an emerging player in the evolving asset management industry, focusing on expanding its customer outreach through superior investment performance, a well-diversified fund portfolio, focused marketing efforts and strong management expertise. As a fully owned entity of the Army Welfare Trust, which is dedicated to the welfare of martyrs’ families, AWT Investments Limited has gained upward momentum during the period in Pakistan’s asset management industry, as evidenced by its improved relative standing among peers. The rating upgrade of the AMC reflects enhancements across multiple key performance areas, including improved fund performance, growth and diversification of assets under management with a strategic focus on the retail segment, enhanced customer services and improved profitability. AWTIL continues to prioritize retail penetration, which has contributed to greater stability and longevity in its asset base. The AMC demonstrates a well-balanced and healthy client base, with a clientele mix comprising 45% retail investors and 55% institutional investors. AWTIL has witnessed significant growth in new account openings, driven by its focused marketing efforts and public awareness initiatives. On the digital side, the AMC is in the process of launching Mobile App v2.0, which is expected to be launched soon. During 9MFY25, the AMC demonstrated a robust 100% growth in AUMs since Jun'24, clocking in at PKR 60bln (Jun'24: PKR 30bln). The AMC's market share doubled to 2% in 9MFY25 (FY24: 1%), reflecting improved positioning relative to its peers. Wherein, AWT Islamic Income Fund carries the significant weightage in total AUMs; dilution is encouraged. However, the Fund significantly attracted a high number of accounts. The Fund performance remained in top quartile during the trailing 12 months ending on Mar'25. At the end of April 2025, AWTIL expanded its product portfolio through the launch of Voluntary Pension Schemes (VPS). This strategic initiative marks a significant step in diversifying the AMC’s portfolio, catering to long-term retirement planning needs of individual investors. During 9MFY25, the financial matrix reveals that the management fee of the AMC increased significantly by 2 times, consequently, the AMC reported a net profit of PKR 146mln in 9MFY25 (9MFY24: PKR 49mln). At the end of 9MFY25, the equity base of the AMC increased to PKR 596mln (FY24: PKR 450mln), wherein in addition to internally generated profits, the sponsor's support in the form of fresh equity remains critical. Furthermore, AWTIL has initiated its transition toward becoming a fully Shariah-compliant asset management company, with full conversion expected in the near future. The process has been initiated through the transformation of its conventional funds into Shariah-compliant funds. Since Jun'24, the AMC’s presence in the Islamic asset management industry has strengthened, with market penetration rising to 3.4%. (Jun'24: 1.9%)
The rating is dependent on the AMC’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, a public unlisted Company incorporated in August 2011, is headquartered in Rawalpindi. The AMC's Board of Directors consists of six members, including the Chief Executive Officer. Currently, AWTIL offers seven Islamic funds across various categories, including Money Market, Equity, Income and Pension. Lt. Gen. Nauman Mahmood (Retd.) was appointed Chairperson of the Board in February 2024. With 38 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 Chief Executive Officer of AWTIL. He is a seasoned investment professional with over 25 years of comprehensive experience in Pakistan’s financial markets.