The Pakistan Credit Rating Agency Limited
06-Sep-24
Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of NIT Income Fund
| Rating Type | Stability Rating | |
|
Current (06-Sep-24 ) |
Previous (08-Mar-24 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA-(f) | AA-(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
NIT Income Fund (or the “Fund”) is a low risk profile Fund. The Fund's objective is to generate competitive stream of return with moderate level of risk for its unit holders, by investing primarily in fixed income securities/instruments. 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 AUMs of the Fund stood at PKR 2.57bln at the end of Jun'24 (Jun'23: PKR 2.43bln). The credit quality of the Fund was ~62.8% in Govt Securities/AAA, ~24.9% in AA rated avenues, ~10.7% in A rated, whereas the rest was invested in others at the end of Jun'24. The Fund had invested ~57.5% in T-Bills, ~26.6% in TFCs, ~14.2% in Banks and remaining ~1.7% in Others at the end of Jun'24. The WAM of the Fund stood at 451 days exposing the Fund's very high credit rate risk. The duration of the Fund stood at 96 days at the end of Jun'24, exposing the Fund has moderate interest rate risk. The unit holding pattern of the Fund stood at ~77.31% at the end of Jun'24, representing top ten investor concentration; exposing very high redemption pressure.
Going forward, 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 sixteen open-end funds which includes two non-public funds namely NIT-SEF and NIT-EMOF, four voluntary pension schemes, and an exchange-traded fund. The assets under management of the Company stood at ~PKR 141.4bln at the end of Jun'24.