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. The Fund's balanced approach combines short-term liquidity management with strategic duration positioning, offering investors enhanced yield potential while maintaining disciplined risk parameters. As of December 2024, the Fund reported Assets Under Management (AUM) of PKR 1.8 billion, reflecting its established presence in Pakistan's fixed income market. In terms of asset class, 45% of assets were allocated to Treasury Bills, 14% to Government of Pakistan Ijara Sukuks, and 14% to Pakistan Investment Bonds, with the remaining 27% invested in other approved instruments. From a credit quality metric, 81% of assets were allocated to Government Securities and AAA rated instruments, complemented by 9% in A+ rated and 7% in AA- rated avenues. This investment-grade concentration provides substantial default protection while allowing measured exposure to higher-yielding opportunities. With a Weighted Average Maturity (WAM) of 686 days as of December 2024, the Fund maintains an extended maturity profile that positions it to capitalize on Pakistan's yield curve. This strategic duration exposure results in elevated sensitivity to credit spread movements, though the substantial government securities allocation (75% combined T-Bills, Sukuks and PIBs) provides fundamental credit stability.
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.