PACRA Maintains Stability Rating of NIT Government Bond Fund
|Rating Type||Stability Rating|
NIT Government Bond Fund (or the 'Fund') is a low-risk profile Fund. NIT Government Bond Fund aims to invest primarily in Government Securities. In line with its stated investment policy, the Fund shall invest at least 70% of net assets in Government securities. The assigned rating reflects adequate strength of the Fund's credit and interest rate risk profile. At the end-Dec'21, the Fund had place 67% of net assets in banks rated AA+ and above. The Fund's exposure to the Government securities was reduced to ~32% due to redemption of Government securities. However, the exposure in Government securities increased to 77% at end-Jan'22, which is now in line with the investment policy of the Fund. The WAM of the stood at 131 days at the end-Dec'21. Whereas, the duration of the Fund was recorded 66 days, which has improved since the last review. 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 which provide a cushion against the 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 ten board members out of which nine 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 thirteen 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 96,759mln (including SEF & EMOF) end-Dec'21.