The Pakistan Credit Rating Agency Limited
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Afnan Iqbal

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PACRA Maintains Asset Manager Rating Of National Investment Trust Limited

Rating Type Asset Manager
Action Maintain Maintain
AM Rating AM2++ AM2++
Outlook Stable Stable
Rating Watch - -

The rating reflects NIT’s strong ownership, robust financial profile and established position as the oldest AMC in Pakistan. The rating drives support from the company’s long operational history, competitive positioning, extensive outreach and sizeable penetration in the retail segment by the company. Overall governance framework remains strong with effective Board oversight. The Company’s experienced management team, along with a well-structured investment process and risk management practices bodes well for the overall decision making process. The management has been focusing on increasing its outreach through digital channels and further strengthening its processes. The market share of the company witnessed a decline due to overall decline in the equity market.This was offset to an extent by growth in income funds. The performance of income funds remained at par or better than peers, whereas equity funds were affected by prevailing stock market returns.
The rating is dependent on the management’s ability to sustain the competitive position of the company in the challenging industry dynamics upholding, while robust processes and governance standards, materialization of recent initiatives into AUMs growth and consistency in funds return, are critical for rating.

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 comprise ten board members. 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. 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 eight open end funds (including NIT-State Enterprise Fund and NIT Equity Market Opportunity Fund) and two pension funds with overall assets under management of ~PKR 75 billion at end June-19.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.