PACRA Maintains Stability Rating of AWT Income Fund

AWT Income Fund ("the Fund") is a medium-risk fixed income solution designed to generate competitive returns through active allocation across Pakistan's yield curve while maintaining disciplined risk parameters. The Fund's balanced approach combines sovereign security with selective credit exposure, offering investors an optimal risk-reward proposition within the income fund category. As of June 2025, the Fund reported Assets Under Management (AUM) of PKR 1.91 billion, reflecting its focused strategy in Pakistan's fixed income market. The Fund maintains a conservative asset allocation with 57% in Treasury Bills (core sovereign liquidity), 19% in bank deposits (liquidity buffer), 13% in short-term Sukuks (yield enhancement), and 10% in GOP Ijara Sukuks (sovereign credit anchor). The Fund demonstrates strong credit discipline, with 75% in Government Securities/AAA rated exposure, 16% in A+ rated instruments, and 7% in AA+ rated securities. With a Weighted Average Maturity (WAM) of 63 days, the Fund maintains: Minimal interest rate sensitivity, strong liquidity provisions (57% T-Bills + 19% deposits), strategic positioning along the short-end of yield curve. The short maturity profile provides a defensive posture against interest rate volatility, enhancing portfolio stability. The Fund's investor base is highly concentrated, with its top holders representing 61% of assets. This creates potential redemption pressure, a risk that is effectively mitigated by holding 76% of the portfolio in liquid assets (T-Bills and deposits).
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
AWT Investments Limited (AWTIL) is a public unlisted company, incorporated in 2011, operating as a licensed Non-Banking Finance Company (NBFC) under the regulatory oversight of the Securities and Exchange Commission of Pakistan (SECP). As a wholly-owned subsidiary of Army Welfare Trust (AWT), the company is authorized to manage open-end and closed-end funds while providing comprehensive Investment Advisory Services. AWTIL is governed by a six-member Board of Directors, ensuring strong oversight and strategic direction. The company is led by Mr. Sajjad Anwar, Chief Executive Officer (CEO), a CFA charter holder with over 24 years of distinguished experience in Equity Research, Portfolio Management, Investment Advisory, Risk Management, and Finance & Accounts. Prior to joining AWTIL, Mr. Anwar served as Chief Investment Officer (CIO) at NBP Funds, bringing proven expertise and leadership in the asset management industry. AWTIL manages a diverse portfolio of funds, including both Conventional and Shariah-compliant investment solutions, catering to a broad spectrum of investor preferences. As of June 2025, the company’s Assets Under Management (AUM) surpassed PKR 63.6 billion, reflecting its strong market presence and disciplined investment approach. With a foundation built on transparency, regulatory compliance, and strategic asset allocation, AWT Investments Limited continues to strengthen its position as a trusted wealth management partner. The company remains dedicated to delivering sustainable returns, innovative financial solutions, and superior client service in Pakistan’s dynamic investment landscape.