PACRA Maintains Stability Rating of AWT Money Market Fund

AWT Money Market Fund (or the "Fund") is the low risk profile. The objective of the Fund, is to generate competitive returns by investing in short term Government Securities and Debt instrument as approved by SECP from time to time. The assigned rating reflects the Fund's low credit risk profile emanating from its investment strategy. The Fund had allocated ~68.6% in T-bills, ~12.5% in Bank deposits, placements & other banking instruments in AA+ rated and above, ~17.5% in Sukuks majorly in AA rated. The duration of the Fund stood at 52 days and the WAM of the Fund stood at 54 days at end Jun’23, limiting the Fund exposure to low interest rate and credit risk. During FY23, AWT Money Market Fund delivered return of 18.1% p.a. beating its benchmark return of 17% p.a. Net Assets of the Fund stood at PKR 2,883 million, showing an increase of 673% from June 30,2022, level of PKR 373 million. Further overall performance of the fund remained above industry average return. The concentration of the top 10 investors in the Fund as of June 2023 was around ~80.8%, exposing the Fund to high level of redemption pressure which is manageable on the back of strong liquidity profile.
Going forward, any 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. The CEO of the Company Mr. Sajjad Anwar. He is a CFA charter holder and has over 21 years of experience that involves Equity Research, Portfolio Management, Investment Advisory, Risk Management, and Finance & Accounts. For the last 15 years, he has been working in the Fund Management Industry. Before becoming CEO at AWTIL, he was performing the role of Chief Investment Officer at NBP Funds. The Company's six-member Board of directors includes five director and the CEO. With overall assets under management of PKR 7.3bln at the end June'23. AWT Investment Limited now managing four conventional funds and two shariah complaint funds.