PACRA Maintains Stability Rating of NIT Islamic Income Fund
|Rating Type||Stability Rating|
The rating reflects the fund's low-risk asset allocation by investing in good credit quality investment avenues. At end Jun-19, ~63% of the fund's exposure was invested as cash balances with banks having minimum credit rating of 'AAA'. The remaining portfolio (~24%) was invested in sukuks of corporates and financial institutions. The unit holding pattern of the fund is highly concentrated with top ten investors representing 65 % of the total fund size of which ~26% are owned investments, which reflects a low level of redemption risk.
Going forward, the fund intends to increase its exposure in cash balances. The remaining assets of the fund will remain invested in corporate Sukuks. 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.