The Pakistan Credit Rating Agency Limited
06-May-19
Analyst
Shahzaib Khalid
shahzaib.khalid@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Asset Manager Rating of National Investment Trust Limited
| Rating Type | Asset Manager | |
|
Current (06-May-19 ) |
Previous (05-Nov-18 ) |
|
| Action | Maintain | Maintain |
| AM Rating | AM2++ | AM2++ |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating derives strength from the strong sponsorship and competitive positioning of the company. The rating reflects long operational history, extensive outreach and sizeable penetration in the retail segment. The rating takes into account the board composition and the effective corporate governance framework of the company. The company's experienced management team and a well-structured investment process along with sound investment risk management function adds value to the overall decision-making process. The diversification of AUM base among various fund categories and expansion in the fund slate along with improvements in the overall operating platform will bode well for the company. Meanwhile, customer outreach through different channels and fund performance in line with the rating remains imperative.
The rating is dependent on the management’s ability to sustain the competitive position of the company in the industry, upholding existing organization structure along with retention of key human resource. Growth in the AUM from the retail market and consistency in fund returns are important rating determinants.
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. 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, Managing Director of the company, holds profound experience in the financial services and capital markets. 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 six open end funds and two pension funds with overall assets under management of ~PKR 75 billion at end Mar-19.