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The Pakistan Credit Rating Agency Limited
Press Release

Date
09-Mar-23

Analyst
Wajeeha Asghar
wajeeha.asghar@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Stability Rating of NIT Income Fund

Rating Type Stability Rating
Current
(09-Mar-23 )
Previous
(09-Sep-22 )
Action Maintain Maintain
Long Term AA-(f) AA-(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

NIT Income Fund (or the “Fund”) is a medium risk profile Fund. The assigned rating reflects the Fund's moderate credit risk profile emanating from Fund's Investment policy to invest in avenues with sound liquidity. The Fund had invested ~42.9% in TFCs/Sukuks rated A+ and above, ~19.7% in T-Bills, ~16.8% in PIBs whereas ~16.7% in cash majority in AA- rated bank and ~1.9% in MTS. The duration of the Fund was 62 days at the end Dec’22, limiting the exposure to interest rate risk. The WAM of the Fund was 595 days at the end Dec’22, exposing the Fund to high credit risk. However, investment in government securities is providing comfort to the assigned rating. The unit holding pattern of the Fund stood at ~85.3%, representing top ten investor concentration. The Fund would remain exposed to redemption pressure. The Fund remained compliant with the given criteria of assigned rating by investing maximum 25% in double A+ rated avenues.
Going forward, any material changes in the investment policy would remain imperative. While compliance with the devised rating criteria for the assigned rating would remain critical.

About the Entity
National Investment Trust Limited was established in 1962 and is a pioneer in the mutual fund industry. The Company’s Board of Directors currently comprises eleven board members out of which ten are non-executive. Mr. Adnan Afridi, CEO/MD who joined in Feb'19 holds profound experience in the financial services and capital markets. Mr. Manzoor Ahmed is the COO and has a successful track record of managing the operations and investment portfolio of the Company. The Company is currently one of the largest asset management companies in Pakistan with a portfolio of fourteen open-end funds which includes two non-public funds namely NIT-SEF and NIT-EMOF, two voluntary pension schemes, and an exchange-traded fund. The assets under management of the Company stood at ~PKR 95.4bln (including SEF & EMOF) end-Dec'22

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.