The Pakistan Credit Rating Agency Limited
11-Oct-19
Analyst
Afnan Iqbal
afnan.iqbal_old@pacra.com_old
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of NIT Money Market Fund
| Rating Type | Stability Rating | |
|
Current (11-Oct-19 ) |
Previous (12-Apr-19 ) |
|
| Action | Maintain | Upgrade |
| Long Term | AAA(f) | AAA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating reflects the fund's low-risk profile emanating from its policy to invest in avenues rated 'AA+' and above. At end Jun-19, ~93% of the fund's assets were invested as cash with "AAA" and above rated banks. Fund’s average duration stood at 2 days in Jun-19. The unit holding pattern of the fund is highly concentrated with top ten investors representing ~84% of the fund of which 24% are owned investments, which reflects a low level of redemption risk.
Going forward, the fund intends to maintain exposure in government securities and cash balances with portfolio duration not exceeding 60 days. The rating remains dependent on maintaining exposure with high credit quality instruments having credit ratings of 'AA-' and above.
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. 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.