Lahore, September 13, 2021 (PPI-OT): NIT Money Market Fund (or the ‘Fund’) is a low-risk profile fund. The assigned rating of the Fund reflects its good credit quality and its sound liquidity profile, which emanate primarily from its mandate to invest in government securities and other low-duration avenues such as bank placement and ensuring low exposure to interest rate risk.

As per the authorized investment policy, the time to maturity of any asset should not be more than 6 months but the weighted average time to maturity of net assets should not be more than 90 days. At end Jun’21, ~96% of the Fund’s assets were allocated to banks rated ‘AA+’ and above. The average duration of the Fund is 4 days, which highlights the superiority of its liquidity profile.

The unit holding pattern of the fund is highly concentrated with the top ten investors representing ~74% of the Fund’s assets, which exposes the Fund to potentially high redemption pressure. Going forward, the Fund intends to maintain its asset allocation towards higher-rated banks. Material changes in the fund’s asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect 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