PACRA Maintains Stability Rating of NIT Income Fund

The NIT Income Fund ("the Fund") is characterized as a low-risk fixed income collective investment scheme, engineered to generate competitive returns through active allocation across Pakistan's yield curve while maintaining prudent risk parameters. The Fund’s diversified approach, which combines sovereign security with selective corporate exposure, supports its objective of delivering enhanced yields within a disciplined investment framework. As of June 30, 2025, the Fund reported Assets Under Management (AUM) of PKR 2.56 billion, reflecting its established presence in Pakistan's fixed income market. The Fund maintains a strategic asset allocation, with 59% invested in Government of Pakistan (GoP) Treasury Bills (T-Bills), 20% in Term Finance Certificates (TFCs), 13% in bank placements, and 7% in Pakistan Investment Bonds (PIBs), demonstrating comprehensive yield curve positioning and a measured approach to credit risk. The Fund exhibits a tiered credit profile, with 69% of assets allocated to 'AAA' rated avenues providing core stability, complemented by 16% in 'A+' rated avenues and a further 10% distributed across 'A1', 'A', and 'AA-' rated securities for measured yield enhancement. This structure reflects an active management of the risk-return spectrum, where the substantial 59% T-Bill allocation provides fundamental anchoring while the 20% TFC exposure enables controlled yield pickup. The Fund maintains a moderate interest rate risk profile with a Weighted Average Maturity of 391 days. This structure reflects measured sensitivity to rate movements and strategic yield curve positioning. A 59% allocation to T-Bills provides strong short-term liquidity. Longer-duration holdings enhance yield potential while maintaining balance. The investor base is concentrated, with the top 10 investors holding 71% of AUM. This concentration creates notable redemption risk. However, 59% in T-Bills and 13% in bank deposits strengthen liquidity. A combined 72% liquidity buffer ensures the Fund can manage redemptions while preserving stability.
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
Established in 1962, National Investment Trust Limited (NITL) stands as a pioneering institution in Pakistan’s mutual fund industry. Governed by a Board of Directors comprising fifteen distinguished members, the company exemplifies leadership, stability, and strategic governance. On February 14, 2025, Mr. Manzoor Ahmed assumed the role of Acting Managing Director of NITL. With an illustrious career spanning over 33 years in the mutual fund sector, Mr. Ahmed brings unparalleled expertise in investment management, capital market operations, product development, research, and regulatory affairs. In his capacity as Chief Operating Officer (COO), he has demonstrated exceptional leadership in overseeing the company’s operations and investment portfolio, which exceeds PKR 213 billion in value. As one of Pakistan’s foremost asset management companies, NITL boasts a diversified portfolio comprising sixteen open-end funds, including two non-public funds (NIT-SEF and NIT-EMOF), two voluntary pension schemes, two employer pension schemes, and an exchange-traded fund (ETF). As of June 2025, the company’s assets under management (AUM) stood at an impressive ~PKR 195 billion, reinforcing its position as a market leader in wealth and fund management. NITL remains committed to delivering superior returns, maintaining strong governance frameworks, and fostering innovation in Pakistan’s financial sector, ensuring sustained value for its stakeholders.