Lahore, March 11, 2023 (PPI-OT): NIT Money Market Fund (or the “Fund”) is low risk profile fund. The assigned rating reflects the Fund’s low credit risk profile emanating from Fund’s Investment policy to invest in avenues with sound liquidity. The Fund had invested ~69.7% in T-Bills, ~20.1% in cash majority in single bank rated AAA whereas ~9.0% in Short Term Sukuk rated AA and above, ~0.75% in Commercial Papers rated AA at the end Dec’22.
The duration and the WAM of the Fund stood at 33 days, exposing low interest rate and credit risk at the end Dec’22. The unit holding pattern of the Fund stood at ~60.10% representing top ten investor concentration.
As per the assigned rating criteria, the Fund need to remain compliant to the specified criteria by investing at least 75% in AAA/Govt Securities and maximum investment in AA+ rated avenues would be 25%. However, the Fund was remained partially compliant with the rating criteria and committed to comply by 100%, going forward.
Going forward, the Fund intend to diversify their investment in AA and above rated avenues. Any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the rating.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com
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