The Pakistan Credit Rating Agency Limited
05-Nov-18
Analyst
Shahzaib Khalid
shahzaib.khalid@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Asset Manager Rating of National Investment Trust Limited
| Rating Type | Asset Manager | |
|
Current (05-Nov-18 ) |
Previous (08-Dec-17 ) |
|
| Action | Maintain | Maintain |
| AM Rating | AM2++ | AM2++ |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating emanates from the company's shareholding structure and strong competitive position in the domestic asset management industry. It is one of the largest and the oldest players in the industry. The rating reflects long operational history, extensive outreach and sizeable penetration in the retail segment. The company’s well-structured decision making process supported by proficient and qualified management team lends support to the fund performance. Further diversification in the fund slate will bode well in strengthening the company’s profile among its peers. Continuous improvements in the overall operating platform along with a diversified fund slate would help in growing the AUM base. The company's investment risk management platform along with a sizeable share of retail investors provides an edge over most of the peers in the investment management business.
The rating is dependent on upholding existing organization structure along with retention of key human resource. Meanwhile diversity in the income stream, customer outreach through different channels and superior fund performance in line with the rating remains imperative.
About
the Entity
National Investment Trust Limited was established in 1962 as an unquoted public limited company. It is the first asset management company of Pakistan and is the pioneer of domestic mutual fund industry. Company’s Board of Directors currently comprise eleven board members out of which ten are non-executive. Mr. Manzoor Ahmed is the Managing Director of the company. The authority for appointment of CEO/Managing Director lies with the Government of Pakistan.
Mr. Manzoor Ahmed, Managing Director NITL, holds profound experience in the domestic mutual fund industry. He is supported by a team of qualified and experienced professionals. The company is currently one of the largest asset management companies in Pakistan with a portfolio of six open end funds and two pension funds with overall AUMs of ~PKR 87 billion at end June-18.