PACRA Maintains Stability Rating of AWT Islamic Income Fund
|Rating Type||Stability Rating|
AWT Islamic Income Fund (or the "Fund") is medium risk profile Fund. The assigned rating reflects the Fund's moderate credit risk profile emanating from its asset allocation. Currently, the Fund had allocated 59.1% in banks, majority in AA- rated bank, ~11.8% in Corporate Sukuks rated AA and above, ~10.5% in certificates of musharaka, ~10.9% in GoP Ijarah Sukuk. Whereas, ~5.5% in commercial papers and ~2.65 in others. The duration of the Fund stood at 38 days at the end Dec’22, exposing low interest rate risk. The WAM of the Fund stood at 225 days at the end Dec’22, exposing high credit risk due to investment in long term GoP Ijarah Sukuk. The top 10 investors concentration of the Fund, at Dec’22 was ~62.7%, giving rise to a moderate level of redemption pressure.
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.
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.