Press Release

VIS Reaffirms Management Quality Rating of National Investment Trust Limited

Karachi, January 01, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the Management Quality Rating (MQR) of National Investment Limited (‘NIT’ or ‘the AMC’) at ‘AM1’ (AM One). The MQR of ‘AM1’ indicates that the asset manager exhibits excellent management characteristics. Outlook on the assigned ratings remains ‘Stable.’ Previous rating action was announced on December 28, 2023.

Headquartered in Karachi, National Investment Trust Limited (‘NIT’ or the ‘AMC’) is Pakistan's oldest AMC, and holds a pioneering position in the mutual fund sector, setting benchmarks for the industry. The GoP is the largest shareholder, both directly and indirectly through various state-owned entities, with additional ownership contributions from private sector institutions.

Assigned rating reflects National Investment Limited’s (‘NIT’ or ‘the AMC’) strong niche position with demonstrated support as a seasoned AMC with a sound performance track. The ratings take into consideration its asset-management franchise, market position as one of the leading AMCs in the country, adequate governance & control framework, sound investment administration and a well-defined investment process which has translated into competitive fund returns particularly for the larger funds under management. Rating also incorporates NIT’s robust financial profile and financial strength of its major shareholders, i.e. government and large commercial banks.

The Company operates under the oversight of an 15-member Board of Directors (including 5 independent/female directors) and three active committees, ensuring accountability and compliance with best corporate governance practices. NIT’s investment process is well-structured, with dedicated Investment Committees overseeing fund operations. Assigned rating also incorporates NIT’s extensive outreach with a network of 27 branches spread nationwide including investors’ facilitation center and call center. While NIT’s market share has noted volatility over time primarily due to equity market movements, its presence in the equity category remains significant. Retail concentration and investor granularity depicts improvement. NIT has demonstrated resilience through growth in AUMs in FY24 with recovery in fund performance and has managed to diversify its portfolio in equity and money market fund as a result its profitability remains strong, driven by revenue growth, improved efficiency, and a conservative financial risk profile.

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

Applicable Rating Criteria: Asset Management Companies
https://docs.vis.com.pk/Methodologies%202024/AMC-Methodology-201906.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 2025 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .