The Pakistan Credit Rating Agency Limited
Press Release


Ayesha Qasim

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PACRA Maintains Stability Rating of NIT Money Market Fund (Formerly: NIT Government Treasury Fund)

Rating Type Stability Rating
(31-Dec-18 )
(30-Jun-18 )
Action Maintain Maintain
Long Term AA+(f) AA+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

NIT Money Market Fund would focus to generate competitive returns with minimum risk for its unit holders by investing in low risk, liquid, short tenor fixed income securities/money market instruments.

The rating reflects the fund's low risk profile emanating from its policy to invest in avenues rated 'AA+' and above. At end Jun-18, 45% of the fund's exposure was in Government T-Bills and remaining portfolio was invested as cash (i.e. ~55%) with "AA+" and above rated banks. Fund’s average duration stood at 10 days in Jun-18. The unit holding pattern of the fund is highly concentrated with top ten investors representing ~95% of the fund, out of which 67% are owned investments, which reflects low level of redemption risk.

Going forward, the fund intends to maintain exposure in government securities and cash balances with portfolio duration not exceeding 60 days. The rating remains dependent on maintaining exposure with high credit quality instruments having credit ratings of 'AA-' and above.

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. Company’s Board of Directors currently comprise eleven board members out of which ten are non-executive. Mr. Manzoor Ahmed is the Managing Director of the company. The authority for appointment of CEO/Managing Director lies with the Government of Pakistan.

Mr. Manzoor Ahmed, Managing Director of the company, holds profound experience in the domestic mutual fund industry. He is 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 eight open end funds and two pension funds with overall AUMs of ~PKR 90 billion at end Nov-18.

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.