PACRA Maintains Stability Rating of AWT Islamic Money Market Fund

The AWT Islamic Money Market Fund (“the Fund”) is assessed as a low-risk, Shariah-compliant liquidity solution, structured to provide competitive returns while prioritizing capital preservation through a high-quality portfolio of Islamic money market instruments. The Fund’s disciplined short-term investment approach and rigorous adherence to Shariah principles solidify its role as a core cash management vehicle for investors seeking permissible income alternatives. As of June 30, 2025, the Fund reported Assets Under Management (AUM) of PKR 2.85 billion, underscoring its significant and established presence within Pakistan’s Islamic liquidity landscape. The Fund maintains a balanced and liquid-conscious asset class, with 32% held in Bai Muajjal and bank placements constituting the core liquidity buffer, 19% allocated to Government of Pakistan (GoP) Ijara Sukuks providing a sovereign credit anchor, 13% in short-term Sukuks for yield enhancement, and 36% in other Shariah-compliant instruments ensuring diversification. The Fund exhibits strong credit quality discipline, with a pronounced emphasis on high investment-grade securities. The Fund is predominantly allocated to upper-tier credit quality, with 52% in ‘AA+’ rated instruments, 29% in direct Government securities or ‘AAA’ rated obligations, 13% in ‘A+’ rated avenues, and 2% in ‘AA’ rated instruments. This strategic allocation minimizes default risk while operating within a strict Shariah-compliant framework. The Fund carries a highly conservative interest rate risk profile with an ultra-short WAM of 41 days, minimizing sensitivity to rate movements while preserving capital. Its liquidity strength is reinforced through 19% allocation in GoP Ijara Sukuks and 32% in bank placements and 32% in Bai Muajjal. Top-ten investors hold 81% of AUM, indicating elevated concentration risk. However, the Fund’s short duration and strong liquidity profile materially mitigate potential redemption pressures.
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.