The Pakistan Credit Rating Agency Limited
Press Release


Wajeeha Asghar

Applicable Criteria

Related Research

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 Money Market Fund

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

NIT Money Market Fund (or the “Fund”) is low risk profile fund. The assigned rating reflects the Fund's low credit risk profile emanating from Fund's Investment policy to invest in avenues with sound liquidity. The Fund had invested ~69.7% in T-Bills, ~20.1% in cash majority in single bank rated AAA whereas ~9.0% in Short Term Sukuk rated AA and above, ~0.75% in Commercial Papers rated AA at the end Dec’22. The duration and the WAM of the Fund stood at 33 days, exposing low interest rate and credit risk at the end Dec’22. The unit holding pattern of the Fund stood at ~60.10% representing top ten investor concentration. As per the assigned rating criteria, the Fund need to remain compliant to the specified criteria by investing at least 75% in AAA/Govt Securities and maximum investment in AA+ rated avenues would be 25%. However, the Fund was remained partially compliant with the rating criteria and committed to comply by 100%, going forward.
Going forward, the Fund intend to diversify their investment in AA and above rated avenues. Any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on 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 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.