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The Pakistan Credit Rating Agency Limited
Press Release

Date
08-Apr-21

Analyst
Muhammad Zain Ayaz
zain.ayaz@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Stability Rating of AWT Islamic Income Fund

Rating Type Stability Rating
Current
(08-Apr-21)
Previous
(16-Oct-20)
Action Maintain Maintain
Long Term A+(f) A+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The rating reflects the fund's average credit risk profile emanating from its asset allocation, of which ~43% invested in cash placements. Whereas remaining funds invested in commercial papers and musharaka certificates. Mostly the cash placements were in bank rated 'A+' and above. The offering document of the Fund allows it to invest in banks rated 'A' and above. The unit holding pattern of the Fund is concentrated with the top 10 investors representing ~85.75% of portfolio, out of which ~23% consisted of related parties which has kept the redemption pressure to moderate level.
Going forward, the fund intends to maintain it's exposure with Banks rated 'A+' and above. 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, including the CEO Mr. Salman Haider. He possesses over two decades of local and international experience in Investment management industry including almost 10 years on Wall Street in New York, USA.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.