Lahore, March 21, 2023 (PPI-OT): AWT Investment Limited has recently launched AWT Financial Sector Income Fund (or the “Fund”) to capture the growing market share and to further diversify its fund slate. AWT Financial Sector Income Fund is a medium risk open ended income category Fund. The objective of the Fund is to provide income enhancement by investing primarily in financial sector, TFCs/Sukuks, Bank Deposits and instruments. The assigned rating reflect the Fund’s medium credit risk profile emanating from Fund’s Investment policy. As per policy, the Fund can invest in A and above rated avenues with maximum maturities upto 6-months.

Currently, the Fund had invested ~66% in cash majority in two banks rated A and above, ~4% in TFC/Sukuks rated A+, ~15.8% in NBFI placements whereas ~13% in PIBs and ~1.2% in others. The duration of the Fund stood at 39 days at the end Feb’23, exposing low interest rate risk. The WAM of the Fund stood at 255 days at the end Feb’23, exposing high credit risk.

However, credit risk is manageable due to investment in Govt securities. The unit holding pattern of top 10 investors concentration of the Fund stood at ~69.23% at the end Feb’23, giving rise to a moderate level of redemption pressure. Going forward, the Fund ensures to diversify its exposure. While assigned rating will be dependent on the given criteria, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the rating.

For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com