PACRA Maintains Asset Manager Rating of National Investment Trust Limited, Outlook "Positive" - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- November 06, 2020 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

Quote

National Investment Trust Limited ("NITL" or the "Company") reaps the benefit of being the first AMC in Pakistan and a robust financial profile. The rating incorporates the Company's experienced management team, structured investment decision making process, strong control environment, an adequate fund slate and satisfactory governance framework. The Company has segregated its compliance, Risk Management and Internal Audit function in line with the best practices to strengthen its control environment.

The Company managed to sustain its AUMs in absolute terms during FY20 but the overall market share declined due to industry wide growth in relative fixed income avenues while the interest in equity portfolios remained low, based on uncertain economic and political environment. Consequently, the equity portfolios reflected less quantum of intrinsic growth. Positive market sentiments post Jun'20 may prove to be beneficial for the Company. The Company's product slate is tilted towards equity category and holds ~37% share of Shariah compliant and conventional equity category. And at end-Jun'20 ~80% of AUMs are concentrated in equity funds, which exposes the fund to high market risk amid second wave of COVID-19 pandemic.

The investor concentration at fund level remained high except for the NIUT. The Company has adequate retail customer base and the management is focusing on strengthening its digital platform for better retail penetration, distribution and customer services. The Company has launched an...