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The Pakistan Credit Rating Agency Limited
Press Release

Date
16-Oct-20

Analyst
Afnan Iqbal
afnan.iqbal_old@pacra.com_old
+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 Maintains Stability Rating of NIT Islamic Income Fund

Rating Type Stability Rating
Current
(16-Oct-20)
Previous
(17-Apr-20)
Action Maintain Maintain
Long Term AA-(f) AA-(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

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.

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 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.

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.