The Pakistan Credit Rating Agency Limited
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Wajeeha Asghar

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PACRA Maintains Stability Rating of NIT Islamic Income Fund

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

NIT Islamic 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 allocated ~71.2% in cash majority in single bank rated AAA, ~17.6% in Corporate Sukuks rated AA- and above whereas ~10% into 5-year GoP Ijara Sukuk and ~1.2% in others. The duration of the Fund stood at 24 days at the end Dec’22, exposing low interest rate risk. While the WAM of the Fund decreased to 234 days at the end Dec’22 (Jun’22: 623 days), exposing the Fund to moderate credit risk. However, major investment in govt securities is providing comfort to the assigned rating. The unit holding pattern of the fund stood at ~75.8% representing top ten investor concentration. The Fund remain compliant with the given criteria of assigned rating by investing maximum 25% in single 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

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