The Pakistan Credit Rating Agency Limited
07-May-21
Analyst
Muhammad Zain Ayaz
zain.ayaz@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Assigns Initial Stability Rating to AWT Money Market Fund
| Rating Type | Stability Rating | |
|
Current (07-May-21 ) |
||
| Action | Initial | |
| Long Term | AA+(f) | |
| Short Term | - | |
| Outlook | ||
| Rating Watch | - | |
The rating reflects AWT Money Market Fund's (Or the "Fund") sound credit risk profile emanating from the Fund's investment policy to invest in strong credit quality investment avenues with sound liquidity. Currently, AWT Investments is managing four funds in Income and Equity category. In order to diversify its fund slate further, the AMC is in process of converting existing asset allocation fund into Money Market category. The investment policy of the Fund strictly prohibits investment in below 'AA' rated avenues. The assigned rating is based on investment philosophy of the Fund to invest in at least three 'AAA' rated banks and will cap its average quarterly duration at 60 days. This is expected to allow the Fund to maintain low level of price risk and strong liquidity profile. The rating takes into account the investment objective of the Fund, which is to provide consistent returns with high level of liquidity. The benchmark return of the fund will be the average of the most recently published 3-Month deposit rates of three ‘AA’ and above rated scheduled banks.
Going forward, the Fund aims to invest in Market Treasury Bills, bank placements and cash and bank deposits. All investments/placements will be in avenues rated "AAA". Risk profile of the Fund will be monitored with the above stated investment policies. Material changes in the funds asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect 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.