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. The offering document allows the fund to invest in Sharia compliant Government Securities, Sukuks issued by corporate, placement in Sharia compliant bank accounts, Musharaka Certificates (COM), Term Deposit Receipts (TDRs) and Certificates of Islamic Investment (COIs). The maximum weighted average time to maturity of the fund will be 4 years. At end Dec'20, ~30% of fund's assets were placed with banks rated 'AA' and above, ~43% of funds were allocated to Sukuks primarily rated 'AA' and above and ~22% of funds were allocated to GoP Ijara Sukuk. The unit holding pattern of the fund is moderately concentrated with top ten investors representing ~46% of the fund's assets.
Going forward, based on market expectations the fund may maintain its current asset allocation or move towards more secure investment avenues. 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 and 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, CEO/MD who joined in Feb'19 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 company in Pakistan with a portfolio of twelve open-end funds which includes two non-public funds namely NIT-SEF and NIT-EMOF, two voluntary pension schemes and an exchange traded fund. The assets under management of the Company stood at ~PKR 94,578mln (including SEF & EMOF) end-Dec'20.