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

Lahore -- May 25, 2023 (PPI-OT)

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

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National Investment Trust Limited ("NITL" or the "Company") is the oldest AMC which reaps the benefit of being the first AMC in Pakistan. The rating incorporates fund slate diversification, structured decision-making process and experienced management team. The rating also takes comfort from strong control environment and satisfactory governance framework. Given the sponsorship of the Government of Pakistan, the business acumen of the Company is considered strong. Also, the strong equity base and financial profile of the Company bodes well to the rating. Previously NITL managing Separately Managed Account (SMA) non-discretionary portfolio of single entity amounting to ~PKR 77bln at end-Sep'22.

However, the SMA are now matured at the end Dec'22. NITL is focusing to capture market share under IAs and focusing on the arrangements with prominent entities to provide investment advisory services under SMA. Currently the market share of NITL including private mix fund (NIT-SEF and NIT-EMOF) as of Dec'22 stood at 6.1% (Dec'21: 8.3%). The AUMs of the Company slightly decreased by ~0.6% to stand at PKR 95.4bln at end Dec'22 (Jun'22: PKR 96bln). A slight decrease in AUMs of NITL is attributed to NITL's signature equity fund National Investment Unit Trust (NIUT) with a weight of ~54% in overall AUMs.

he decrease in AUMs of NIUT Fund was primarily due to stock market performance. The market capitalization decline by ~15.5% from Dec'21 to Dec'22. However, the market's inclination is towards less riskier funds like Money Market and Income funds. The...