PACRA Maintains Stability Rating of NIT Government Bond Fund
|Rating Type||Stability Rating|
NIT Government Bond Fund (or the 'Fund') is of the assigned rating incorporates the low risk profile of the Fund. The Fund had allocated ~57% of net assets in bank placements rated AAA in ABL and BAHL. Whereas, allocation in the government securities was ~42% rated AAA. The duration of the Fund was reduced to 34 days (Dec'21: 82 days) exposing the Fund to low interest rate risk. The WAM of the Fund decreased to 115 days at the end-Jun'22 (Dec'21: 131days) hence, reducing the credit risk. The unit holding pattern of the Fund is highly concentrated with the top ten investors representing ~83% of the Fund's assets, out of which ~40% are owned investments exposing the Fund to low redemption pressure.
Going forward, the Fund intends to keep its allocation in the government securities. Material changes in the Fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.
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 96.34bln (including SEF & EMOF) end-Jun'22.