PACRA Maintains Stability Rating of NIT Money Market Fund
|Rating Type||Stability Rating|
NIT Money Market Fund (or the “Fund”) is low risk profile fund. The assigned rating reflects the Fund's low credit risk profile emanating from Fund's Investment policy to invest in avenues with sound liquidity. The Fund had invested ~69.7% in T-Bills, ~20.1% in cash majority in single bank rated AAA whereas ~9.0% in Short Term Sukuk rated AA and above, ~0.75% in Commercial Papers rated AA at the end Dec’22. The duration and the WAM of the Fund stood at 33 days, exposing low interest rate and credit risk at the end Dec’22. The unit holding pattern of the Fund stood at ~60.10% representing top ten investor concentration. As per the assigned rating criteria, the Fund need to remain compliant to the specified criteria by investing at least 75% in AAA/Govt Securities and maximum investment in AA+ rated avenues would be 25%. However, the Fund was remained partially compliant with the rating criteria and committed to comply by 100%, going forward.
Going forward, the Fund intend to diversify their investment in AA and above rated avenues. Any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the rating.
National Investment Trust Limited was established in 1962 and is a pioneer in the mutual fund industry. The Company’s Board of Directors currently comprises eleven board members out of which ten 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. The Company is currently one of the largest asset management companies in Pakistan with a portfolio of fourteen 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 95.4bln (including SEF & EMOF) end-Dec'22