Muhammad Zain Ayaz
PACRA Assigns Initial Asset Manager Rating to AWT Investment Limited
The assigned rating reflects modest positioning of AWT Investments Limited ("AWTIL" or the "Company"). The prominent business acumen of the sponsor bodes well for the rating. The rating is supported by a structured investment process, sound governance structure, proficient and qualified management. The Company is also strengthening its foot prints in the competitive investment advisory domain, The management is also planning to diversify its product slate by launching hybrid REIT schemes and private equity funds. The AUMs' profile of the Company remained stagnant with average market share ~0.2% during FY21. The retail clientele under SMA portfolio constitutes ~68% reflecting granularity. The association of SMA spans an average from 1 year to 3 years, while the portfolio mainly comprises of discretionary SMAs. Since Jun'20, the Company have shown a healthy growth of ~100% in SMA portfolio. The Company is in the process of completion of an in-house owned Software Solution for the Investment Advisory business which will further solidify its position in the market. Previously, the Company is in losses on account of declining management fee, but over the time, the fee has been improved on the account of advisory business, the Company has reported a net profit of ~PKR 5.4mln in Mar’21 (Jun’20: ~PKR -39mln). The Company's equity stood at ~PKR 233mln at end Mar’21. The conversion of losses to profits is itself indication of efficiency of management and its commitment to bolstering bottom-line.
The rating is dependent on the Company’s ability to strengthen its market position. At the same time, stability in key human resource, structured improvement in risk management framework and success of initiatives to increase retail AUM will remain crucial for the rating.
AWT Investments Limited (formerly Primus Investment Management Limited) is a public unlisted company incorporated in August 2011. The Company was is registered as an Asset Management Company and Investment adviser under the Non-Banking Finance Companies Regulations by the Securities and Exchange Commission of Pakistan (SECP). Head office of the company is situated in Rawalpindi. The Company also provides investment advisory services. The Company’s board of directors comprises six members including the Chairman and the Chief Executive Officer. The Company offers investment solutions for both conventional and Islamic markets. At FY21, AWTIL is offering 4 Funds in Equity and Fixed Income Category, it is in process of launching new fund in money market category to strengthen its fund slate and further solidifying its position in the money market universe.