PACRA Maintains Stability Rating of NIT Islamic Income Fund
|Rating Type||Stability Rating|
The rating reflects the moderate strength of the fund's credit and interest rate risk profile, considerable holding of cash and bank balances reinforce the liquidity profile. At end Jun'20, ~55% of fund's assets were placed with banks rated 'AA' and above, 24% of funds were allocated to sukuks while remaining ~3% to Islamic commercial papers. The unit holding pattern of the fund is moderately concentrated with top ten investors representing ~48% of the fund's assets.
Going forward, the fund intends to maintain its current asset allocation. Material changes in the fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect 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 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 five conventional funds, two shariah-compliant funds and two pension funds. The assets under management of the Company stood at ~PKR 76bln (including SEF & EMOF) at end-Jun'20. The Company also launched an exchange traded fund during CY20.