PACRA Assigns Initial Fund Rating to AWT Financial Sector Income Fund
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AWT Investment Limited has recently launched AWT Financial Sector Income Fund (or the "Fund") to capture the growing market share and to further diversify its fund slate. AWT Financial Sector Income Fund is a medium risk open ended income category Fund. The objective of the Fund is to provide income enhancement by investing primarily in financial sector, TFCs/Sukuks, Bank Deposits and instruments. The assigned rating reflect the Fund's medium credit risk profile emanating from Fund's Investment policy. As per policy, the Fund can invest in A and above rated avenues with maximum maturities upto 6-months. Currently, the Fund had invested ~66% in cash majority in two banks rated A and above, ~4% in TFC/Sukuks rated A+, ~15.8% in NBFI placements whereas ~13% in PIBs and ~1.2% in others. The duration of the Fund stood at 39 days at the end Feb’23, exposing low interest rate risk. The WAM of the Fund stood at 255 days at the end Feb’23, exposing high credit risk. However, credit risk is manageable due to investment in Govt securities. The unit holding pattern of top 10 investors concentration of the Fund stood at ~69.23% at the end Feb'23, giving rise to a moderate level of redemption pressure.
Going forward, the Fund ensures to diversify its exposure. While assigned rating will be dependent on the given criteria, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on 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. 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 3.9bln at the end Feb'23, the company is recently launched new Fund AWT Financial Sector Income Fund on 19th Dec, 2022. AWT Investment Limited now managing four conventional funds and two shariah complaint funds.