Press Release

VIS Reaffirms Fund Stability Rating of NIT Islamic Money Market Fund

Karachi, January 22, 2025: VIS Credit Ratings Company Ltd. (VIS) has reaffirmed Fund Stability Rating (FSR) of NIT Islamic Money Market Fund (“NIT IMMF” or “the Fund”) at ‘AAA(f)’ (Triple A (f)). FSR of AAA depicts highest degree of stability in NAV. Risk is negligible with very low sensitivity to changing economic conditions. The previous rating action was announced on December 22, 2023.

NIT Islamic Money Market Fund is an open end Shariah compliant money market fund launched in September 2021 and managed by National Investment Trust Limited (NIT). The fund’s objective is to provide competitive return by primarily investing in low risk and highly liquid Shariah Compliant Money Market & Debt Instruments.

Assigned rating takes into account the Fund’s asset allocation, with Assets Under Management (AUM) recording modest growth of ~8% during FY24. During this period, the Fund adhered to the asset allocation parameters outlined in the offering document, however, the same was not aligned with the rating parameters. With the gradual reduction in AAA rated exposures, credit quality of the portfolio has been impacted. While management aims to streamline the exposures in line with rating benchmarks, implementation of the same over time will remain important for rating.

Duration of the Fund’s assets remained in line with the assigned rating, However, quantum of liquid assets decreased during FY24, on account of relatively higher Corporate Sukuk holdings vis a vis last year. Additionally, the concentration risk is considered low. In terms of the Fund’s performance, the Fund’s YTD return slightly outperformed its peer average, but it fell in the third quartile relative to peers.

For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.



Applicable Rating Criteria: Fund Stability Ratings
https://docs.vis.com.pk/docs/FundstabilityRating.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright January 22, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.