Press Release

VIS Reaffirms Fund Stability Rating of NIT Social Impact Fund

Karachi, January 03, 2025: VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of A+(f) (Single A Plus (f)) to NIT Social Impact Fund (NIT-SIF). Medium to long term fund rating of ‘A+’ signifies moderate degree of stability in NAV. Risk factors may vary with possible changes in the economy. The previous rating action was announced on December 22, 2023

NIT Social Impact Fund is an open-end microfinance sector income fund with objective to generate returns through investment in strategic and financially sustainable social initiatives such as women empowerment, agriculture value chains, micro small medium enterprises development, and low-cost renewable energy etc. via microfinance banks/institutions/providers.

Assigned rating incorporates asset allocation of the Fund, with the Fund’s investments adhering to the guidelines stated in the offering document. Investments in cash represented the majority portion of the Fund’s portfolio followed by exposures held in government securities and TFCs/Sukuks. Assigned rating also reflects the credit quality of the Fund, which improved on account of increased allocation to AAA rated issues/issuer. Nevertheless, Exposures in A+ rated issues/issuers dominate the Fund’s portfolio. The Fund’s credit exposures remained within the investment criteria, which allows for investments in assets rated BBB and above.

The weighted average time to maturity (WAM) remained well below the defined limit in the offering document. Liquidity profile of the Fund is supported by its higher proportion of liquid assets. The retail investors represent the majority portion of the Fund’s AUM followed by notable proportion held by corporate investors. Additionally, client concentration risk is considered high. In terms of performance, the Fund’s annualized return outperformed both the benchmark and peer average. However, on a monthly basis, the Fund outperformed its benchmark in two months.

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

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