PACRA Maintains Stability Rating of NIT Government Bond Fund
|Rating Type||Stability Rating|
The objective of NIT Government Bond Fund is to generate best possible return with minimum risk, for its Unit Holders, by investing primarily in the Government Securities.
The rating reflects fund's low risk and sound liquidity profile. At end Dec-18, the portfolio comprised cash balances of ~47% with AA- and above rated banks. The remaining assets of the fund were invested with T-Bills (51%) 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 end Dec-18. The unit holding pattern of the fund is highly concentrated with top ten investors representing ~79% of the fund's assets, (out of which ~40% are owned investments) which exposes the fund to 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. Company’s Board of Directors currently comprise eleven board members out of which ten 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 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 and two pension funds with overall AUMs of ~PKR 85 billion at end Dec-18.