PACRA Maintains Stability Rating of NIT Islamic Income Fund

The NIT Islamic Income Fund ("NIT IIF" or the "Fund") is a Shariah compliant Islamic income Fund with a medium risk profile. The Fund aims to generate a stable stream of Shariah compliant income while seeking maximum possible preservation of capital over the medium to long term through investments in a diversified portfolio of Shariah compliant fixed income and money market instruments. As of Dec'25, the Fund's Assets Under Management (AUM) stood at approximately PKR 2.12 billion, compared to PKR 2.25 billion as of Jun'25. In terms of asset class, 39.1% of the net assets was held in corporate sukuks, 37.6% was placed as bank deposits, 14.1% was placed in DFIs, 7.2% in GOP Ijara Sukuks and the remaining in others. From a credit quality standpoint, the Fund had majorly invested in AA rated avenues (27.6%), 18.4% in Government Securities/AAA rated avenues, 16.4% in AA+ and A1+ rated avenues, and the remaining was invested in others. The Fund's Weighted Average Maturity (WAM) stood at 219 days, indicating moderate exposure to credit and interest rate risk. Nevertheless, the overall credit risk remains manageable, supported by the Fund's allocation to Government Securities/AAA rated avenues. The top 10 unit holders collectively accounted for 45.3% of the Fund's total units, reflecting a moderate level of redemption concentration. However, the associated liquidity risk is considered manageable to some extent, supported by the Fund's sizeable placement in bank deposits, which provides a readily available source of liquidity to meet potential redemption requirements. In terms of performance, the Fund generated an annualized return of 10.46% as of Dec'25. The return remained marginally above the benchmark return of 10.06% but below the peer average return of 13.30%.
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 December 2025, the company’s assets under management (AUM) stood at an impressive PKR 216 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.