PACRA Maintains Stability Rating of NIT Islamic Income Fund

NIT Islamic Income Fund ("NIT-IIF" or "the Fund") is a medium-risk Shariah-compliant fixed income solution designed to generate stable returns while preserving capital through a diversified portfolio of Islamic instruments. The Fund's impressive growth to PKR 2.43 billion AUM as of December 2024 (from PKR 1.61 billion in June 2024) reflects increasing demand for quality Shariah-compliant income products. In terms of asset class, 38.0% of assets were allocated to bank placements, 22.20% in Government of Pakistan Ijara Sukuk, 20.58% in corporate Sukuk, and 16.51% in Development Finance Institutions (DFIs), demonstrating a comprehensive approach to Islamic fixed income investing. The Fund's credit quality profile shows 22.2% allocation to Government/AAA-rated instruments, complemented by 9.63% in AA+ rated and 29.0% in A rated avenues. With a weighted average maturity (WAM) of 127 days as of December 2024, the Fund maintains moderate exposure to credit risk while benefiting from its relatively short duration profile. This positioning allows for stable returns within a Shariah-compliant framework, with the government Sukuk allocation (22.20%) providing fundamental credit support.
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 fifteen board members. Mr. Manzoor Ahmed, assumed charge of the post of Managing Director (Acting), National Investment Trust Limited on February 14, 2025. Being, COO, he has been successfully managing the operations and investment portfolio worth over PKR 213 billion. He has experience of over 33 years of the Mutual Fund industry and has been placed at many key positions within NIT that includes capital market operations, investment management, product development, research and liaising with the regulatory authorities. 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, two voluntary pension schemes, two employer pension scheme and an exchange-traded fund. The assets under management of the Company stood at ~PKR 217,860mln at the end of Dec'24.