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The Pakistan Credit Rating Agency Limited
Press Release

Date
12-Apr-19

Analyst
Shahzaib Khalid
shahzaib.khalid@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Upgrades Stability Rating of NIT Money Market Fund (Formerly: NIT Government Treasury Fund)

Rating Type Stability Rating
Current
(12-Apr-19)
Previous
(31-Dec-18)
Action Upgrade Maintain
Long Term AAA(f) AA+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The objective of the fund is to generate competitive returns with minimum risk for its unit holders by investing in low risk, liquid, short tenor fixed income securities/money market instruments.
The rating reflects the fund's low risk profile emanating from its policy to invest in avenues rated 'AA+' and above. At end Dec-18, ~99% of the fund's assets were invested as cash with "AA+" and above rated banks. Fund’s average duration stood at 1 day in Dec-18. The unit holding pattern of the fund is highly concentrated with top ten investors representing ~87% of the fund, out of which 54% are owned investments, which reflects low level of redemption risk.
Going forward, the fund intends to maintain exposure in government securities and cash balances with portfolio duration not exceeding 45 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. 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 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 and two pension funds with overall assets under management of ~PKR 85 billion at end Dec-18.

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.