PACRA Maintains Stability Rating of AWT Islamic Income Fund

The AWT Islamic Income Fund (“the Fund”) is characterized as a medium-risk, Shariah-compliant fixed income collective investment scheme, engineered to deliver competitive risk-adjusted returns through a diversified exposure to instruments across the Islamic yield curve. The Fund’s strategic methodology integrates rigorous Shariah compliance with active duration management, positioning it as a core solution for investors seeking stable, permissible income. As of June 30, 2025, the Fund’s AUM stood at PKR 57.23 billion, positioning it as a major player in Pakistan’s Islamic fixed income sector. The Fund demonstrates a well-diversified allocation across permissible asset classes: a 39% weighting in bank placements forms the primary liquidity core, while 23% is allocated to short-term Sukuks for yield enhancement and a further 23% to Bai Muajjal instruments for sector diversification. A 13% anchor allocation to Government of Pakistan (GoP) Ijara Sukuks provides sovereign credit stability. From a credit quality standpoint, 36% of assets held in direct Government securities/AAA rated instruments, 20% in ‘A+’ rated instruments, 15% in ‘AA+’ category spectrum, 14.5% in AA-, and the remaining was held in AA rated avenues. This tiered allocation mitigates concentration risk while seeking to optimize portfolio yield. The Fund maintains a moderate interest rate risk profile with a WAM of 182 days, supported by strategic positioning and strong liquidity through bank placements and sovereign Sukuk. Its diversified investor base, with the top 10 investors holding only 33% of AUM, reduces redemption risks, combined with its scale and liquidity buffers.
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.