PACRA Maintains Stability Rating of AWT Financial Sector Income Fund

AWT Financial Sector Income Fund ("the Fund") is a medium-risk fixed income solution designed to provide investors with income enhancement and capital preservation through strategic allocations to Pakistan's financial sector instruments. The Fund's balanced approach combines exposure to high-quality financial sector debt with core government securities, offering investors a specialized fixed income option with measured risk exposure. As of December 2024, the Fund reported Assets Under Management (AUM) of PKR 469 million, reflecting its focused presence in Pakistan's financial sector debt market. In terms of asset class, 95% was invested in bank placements, 3% in Term Finance Certificates/Sukuks, and 2% in other approved instruments, demonstrating a disciplined approach to sector-specific investments. The Fund exhibits strong credit quality with 94% of assets in Government Securities and AAA rated instruments, complemented by 3% in A+ rated avenues. This high-grade concentration provides substantial protection against default risk while allowing for targeted exposure to financial sector opportunities. With a Weighted Average Maturity (WAM) of 92 days as of December 2024, the Fund maintains moderate exposure to interest risk. This intermediate maturity profile reflects the Fund's strategy to balance yield potential with liquidity considerations, while its substantial government securities allocation serves as a stabilizing anchor for the portfolio.
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. It operates as a Non-Banking Finance Company (NBFC), licensed by the Securities and Exchange Commission of Pakistan (SECP) to manage open-end and closed-end funds, as well as provide Investment Advisory Services. The company is a wholly-owned subsidiary of Army Welfare Trust (AWT). The Board of Directors consists of five members, including the CEO, Mr. Sajjad Anwar, a CFA charter holder with over 21 years of experience in Equity Research, Portfolio Management, Investment Advisory, Risk Management, and Finance & Accounts. Before joining AWTIL, he served as Chief Investment Officer (CIO) at NBP Funds, bringing extensive expertise in the fund management industry. As of the latest reports, AWT Investments Limited manages multiple funds, including Conventional and Shariah-compliant portfolios, with Assets Under Management (AUM) exceeding PKR 54 billion as of December 2024.