PACRA Maintains Stability Rating of NIT Money Market Fund

The NIT Money Market Fund (the "Fund") is assessed as a low-risk, fixed-income collective investment scheme, structured to provide competitive returns while emphasizing capital preservation and supreme liquidity. The Fund’s near-exclusive focus on sovereign and highest-rated short-term instruments, combined with a disciplined liquidity management framework, solidifies its role as a core cash management solution for a diverse investor base. As of June 30, 2025, the Fund reported a substantial Assets Under Management (AUM) of PKR 45.24 billion, ranking it among the liquid vehicles within Pakistan's money market fund sector. In terms of asset class, 83% of net assets allocated to Government of Pakistan (GoP) Treasury Bills (T-Bills), 15% in bank deposits, and a minimal 2% allocation to corporate Sukuk for marginal yield enhancement. The Fund exhibits exceptional credit quality, with 97.93% of net assets held in ‘AAA’ rated avenues, primarily direct government securities, and an additional 2% in short-term instruments rated ‘A1’. This asset distribution virtually eliminates material default risk, with the minimal corporate Sukuk exposure constituting the Fund's sole and contained credit risk element. The interest rate risk profile is highly conservative, evidenced by a Weighted Average Maturity (WAM) and duration of 61 days. This abbreviated maturity profile indicates minimal sensitivity to interest rate movements. An analytical focus is the Fund's investor concentration, where the top 10 investors constitute 56% of AUM, presenting a potential vulnerability to outsized redemption events. However, this risk is materially mitigated by the Fund's structural defenses, including an 83% allocation to highly liquid GoP T-Bills and a 15% allocation to bank deposits, which collectively form a significant liquidity buffer. This strong liquidity profile, augmented by daily dealing capacity, provides the Fund with ample operational flexibility to manage potential redemption pressures without compromising integrity or valuation stability.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the rating.

About the Entity
Established in 1962, National Investment Trust Limited (NITL) stands as a pioneering institution in Pakistan’s mutual fund industry. Governed by a Board of Directors comprising fifteen distinguished members, the company exemplifies leadership, stability, and strategic governance. On February 14, 2025, Mr. Manzoor Ahmed assumed the role of Acting Managing Director of NITL. With an illustrious career spanning over 33 years in the mutual fund sector, Mr. Ahmed brings unparalleled expertise in investment management, capital market operations, product development, research, and regulatory affairs. In his capacity as Chief Operating Officer (COO), he has demonstrated exceptional leadership in overseeing the company’s operations and investment portfolio, which exceeds PKR 213 billion in value. As one of Pakistan’s foremost asset management companies, NITL boasts a diversified portfolio comprising sixteen open-end funds, including two non-public funds (NIT-SEF and NIT-EMOF), two voluntary pension schemes, two employer pension schemes, and an exchange-traded fund (ETF). As of June 2025, the company’s assets under management (AUM) stood at an impressive ~PKR 195 billion, reinforcing its position as a market leader in wealth and fund management. NITL remains committed to delivering superior returns, maintaining strong governance frameworks, and fostering innovation in Pakistan’s financial sector, ensuring sustained value for its stakeholders.