PACRA Maintains Stability Rating of NIT Government Bond Fund
|Rating Type||Stability Rating|
The rating reflects fund's low risk and sound liquidity profile. At the end of Jun-19, the portfolio comprised cash balances of ~26% with AA- and above rated banks. The remaining assets of the fund were invested with T-Bills (70%) which due to its self-liquidating nature possess less risk over the short tenure. The weighted average maturity of the portfolio stood at 25 days at the end of Jun-19. The unit holding pattern of the fund is highly concentrated with top ten investors representing ~83% of the fund's assets, (out of which ~40% are owned investments) which exposes the fund to a low level of redemption pressure.
Going forward, the fund intends to maintain exposure in T-bills and some part of the investment in banks having good credit quality. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remain critical for the rating.
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. The company’s Board of Directors currently comprises ten board members out of which nine are non-executive. Mr. Adnan Afridi has been appointed as the Managing Director of the company in Feb-19. The authority for appointment of CEO/Managing Director lies with the Government of Pakistan.
Mr. Adnan Afridi, Managing Director of the company, holds profound experience in the financial services and capital markets. Mr. Manzoor Ahmed is the COO and has a successful track record of managing the operations and investment portfolio of the company. They are 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 seven conventional funds and three shariah-compliant funds with overall assets under management of ~PKR 76 billion at the end of June-19.