PACRA Maintains Stability Rating of NIT Income Fund

NIT Income Fund (or the 'Fund') is a medium-risk profile Fund. The assigned rating reflects the moderate strength of the Fund's credit and interest rate risk profile. The Fund had allocated ~46% of its net assets to Banks, mainly AAA rated banks, ~31% in TFCs rated AA- or higher whereas ~8% in PIBs. The duration of the Fund stood at ~39 days at the end-Jun'22 (Dec'21: 50days) hence, exposure to interest rate risk remained on lower side. Whereas, the WAM of the Fund was 327days at the end-Jun'22 (Dec'21: 381days) exposing the moderate level of credit risk. The unit holding pattern of the Fund is highly concentrated with the top ten investors representing ~84% of the Fund's assets, out of which ~56% was related party holding hence, reducing the redemption pressure.
Going forward, material changes in the Fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.

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 96.34bln (including SEF & EMOF) end-Jun'22.