The Pakistan Credit Rating Agency Limited
Press Release


Muhammad Zain Ayaz

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PACRA Maintains Stability Rating of AWT Islamic Income Fund

Rating Type Stability Rating
(08-Oct-21 )
(08-Apr-21 )
Action Maintain Maintain
Long Term A+(f) A+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The rating reflects the Fund's adequate credit risk profile emanating from its asset allocation, of which ~62% invested as cash placements in banks having rating 'A' and above, ~16% is invested in spread transactions and ~20% in others. The offering document of the Fund allows it to invest in banks rated 'A' and above. The duration of the Fund remained 24 days, at Jun'21. The unit holding pattern of the Fund is concentrated with the top 10 investors representing ~77% of portfolio, out of which ~40% consisted of related parties which has kept the redemption pressure to moderate level.
Going forward, the Fund intends to maintain it's exposure with Banks rated 'A' and above. Material changes in the Fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remain critical for the rating.

About the Entity
AWT Investments Limited is a public unlisted company, incorporated in 2011. It is a Non-Banking Finance Company, licensed by the Securities and Exchange Commission of Pakistan to manage open and closed-end funds and Investment Advisory Services. The Company is a wholly owned subsidiary of Army Welfare Trust.
The Board of Directors of the Company comprises five members, including the CEO Mr. Salman Haider. He possesses over two decades of local and international experience in Investment management industry including almost 10 years on Wall Street in New York, USA.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.