PACRA Maintains Stability Rating of NIT Government Bond Fund

The NIT Government Bond Fund ("NIT GBF" or the "Fund") is a sovereign income fund with a medium risk profile. The Fund aims to generate the best possible returns with minimum risk for its unit holders by investing primarily in Government Securities. As of Dec'25, the Fund's Assets Under Management (AUM) stood at approximately PKR 3.98 billion, compared to approximately PKR 13.40 billion as of Jun'25, reflecting a significant decline during the period. In terms of asset class, 41.2% was held in PIBs, 29.4% was placed as bank deposits, 26.9% in T Bills, and the remaining was invested in others. From a credit quality standpoint, 70.8% was held in Government Securities/AAA rated avenues, 15.7% in AA rated avenues, 7.4% in A+ rated avenues, and the remaining in others. The Fund's Weighted Average Maturity (WAM) stood at 455 days, indicating relatively high exposure to interest rate risk owing to its longer duration profile. However, the overall credit risk remains manageable, supported by the Fund's substantial allocation to Government Securities/AAA rated avenues. The top 10 unit holders collectively accounted for 63.4% of the Fund's total units, reflecting a high level of redemption concentration. Nevertheless, the associated liquidity risk is considered manageable to some extent, supported by the Fund's placements in bank deposits, which provide a readily available source of liquidity to meet potential redemption requirements. In terms of performance, the Fund generated an annualized return of 13.20% as of Dec'25. The return remained above the benchmark return of 10.54% while remaining below the peer average return of 18.28%
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.