PACRA Maintains Stability Rating of AWT Money Market Fund
|Rating Type||Stability Rating|
AWT Money Market Fund (or the "Fund") is the low risk profile. The assigned rating reflects the Fund's low credit risk profile emanating from its asset allocation. The Fund had allocated ~97.3% in bank placements mainly rated AAA in the end Jun'22. The credit quality of the Fund remained strong and compliant with rating criteria for the assigned rating. The duration and the WAM of the Fund stood at 1-day at end Jun'22 (Dec’21: 71-days), limiting the exposure to interest rate and credit risk. The top 10 investors concentration of the Fund, at Jun’22 was ~77.97% of which ~11.94% were related parties investments, giving rise to moderate redemption pressure.
Going forward, 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 a wholly-owned subsidiary of Army Welfare Trust. The Board of Directors of the Company comprises five members. The CEO of the Company Mr. Salman Haider has recently resigned. Mr. Sajjad Anwar has joined as CEO of the Company in Mar'22. Mr. Anwar is 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 2.2bln at the end Jun'22, the company is currently managing three conventional funds and two shariah complaint funds.