PACRA Maintains Stability Rating of AWT Islamic Money Market Fund (Formerly: AWT Money Market Fund)

AWT Islamic Money Market Fund (or the "Fund") is a low-risk Shariah-compliant liquidity solution designed to provide investors with capital preservation, daily liquidity, and competitive returns through high-quality Islamic money market instruments. The Fund's conservative investment approach and strict adherence to Islamic principles make it an ideal choice for risk averse investors seeking Shariah-compliant cash management solutions. As of April 2025, the Fund reported Assets Under Management (AUM) of PKR 1.9 billion, reflecting its growing presence in Pakistan’s Islamic liquidity market. Regarding asset class, 51% of assets were allocated as bank deposits, 16% to short-term Sukuks, 13% to Government of Pakistan (GOP) Ijara Sukuks, and 13% to Bai Muajjal, demonstrating a balanced approach to yield optimization and liquidity preservation within a Shariah framework. In terms of credit quality, 37% of assets invested in Government Securities/AAA rated instruments, complemented by 48% in AA rated and 8% in A1 rated avenues. This investment-grade concentration (AAA or better rated instruments) provides a protection against credit risk while ensuring full compliance with Islamic investment principles. With a Weighted Average Maturity (WAM) of 31 days as of April 2025, the Fund maintains one of the shortest duration profiles in its peer group, indicating minimal exposure to interest rate fluctuations and strong resilience to market volatility. This ultra-conservative maturity structure aligns with the Fund’s objective of maximizing liquidity and capital preservation.
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 61.4 billion as of April 2025.