Press Release

VIS Assigns Initial Fund Stability Rating to NIT Islamic Money Market Fund
 

Karachi, May 26, 2022: VIS Credit Rating Company Limited has assigned initial Fund Stability Rating (FSR) of AAA (f) (Triple A (f)) to NIT Islamic Money Market Fund.

NIT Islamic Money market fund, recently established in Sept 2021, is an open ended Shariah compliant money market scheme with an objective to generate competitive returns for its investors through deploying investments in short-term and low risk oriented Shariah compliant investment avenues. The fund’s Investment Policy Statement (IPS) observes a conservative risk profile where it restricts the fund to take exposure in avenues rated above AA.

Assigned ratings take into account the fund’s actual asset allocation and credit quality requisites since inception. On a month-on-month average analysis, it was observed that major portion of the fund’s portfolio was invested in cash balances while remaining was deployed in Islamic Commercial Paper and Short term Sukuk. Since its inception, the fund has deployed more than 85% of its assets in AAA rated issue/issuer while Weighted Average Maturity (WAM) also maintained below 45 days which qualifies the fund to obtain AAA rating for the current year. Maintaining the same going forward would be important.

Top ten investor concentration of the fund is on the higher side, however given the fund’s liquid asset allocation plan, ability to meet redemptions is considered sound. The fund till date has outperformed its benchmark rate as well as peer average. As end February 2022, the fund was placed in the first quartile relative to peers. Going forward, sustainability of the fund’s performance, actual asset allocation plan and credit quality exposure will remain important for the rating.

For further information on this rating announcement, please contact Ms. Sara Ahmed (Ext: 207) at 35311861-70 or email at info@vis.com.pk





Javed Callea
Advisor

Applicable rating criteria: Fund Stability Ratings (December 2020)
https://docs.vis.com.pk/docs/FundstabilityRating.pdf

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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 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited