Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the stability rating of the NIT Money Market Fund, highlighting its position as a low-risk, fixed-income collective investment scheme. Designed for capital preservation and liquidity, the Fund has an Assets Under Management (AUM) totaling PKR 45.24 billion as of June 30, 2025, placing it prominently within Pakistan's money market fund sector.

The Fund's asset allocation strategy is heavily focused on Government of Pakistan Treasury Bills, which account for 83% of net assets. Bank deposits make up 15%, while a minor 2% is invested in corporate Sukuk to enhance yields. This allocation strategy minimizes default risk by holding 97.93% of net assets in 'AAA' rated securities, primarily in government securities, and an additional 2% in instruments rated 'A1'.

The interest rate risk is conservatively managed, with a Weighted Average Maturity and duration of 61 days, reducing sensitivity to shifts in interest rates. Despite the concentration risk from the top 10 investors holding 56% of AUM, the Fund's liquid asset base, including 83% in T-Bills and 15% in bank deposits, provides a significant buffer against potential redemption pressures.

PACRA notes that any significant changes in investment policy or the rating criteria may affect the Fund's current rating. Nonetheless, the Fund's current structural defenses and liquidity profile allow it to navigate investor redemptions without compromising its operational stability.