Lahore, December 31, 2018 (PPI-OT): NIT Money Market Fund would focus to generate competitive returns with minimum risk for its unit holders by investing in low risk, liquid, short tenor fixed income securities/money market instruments.
The rating reflects the fund’s low risk profile emanating from its policy to invest in avenues rated ‘AA+’ and above. At end Jun-18, 45% of the fund’s exposure was in Government T-Bills and remaining portfolio was invested as cash (i.e. ~55%) with “AA+” and above rated banks. Fund’s average duration stood at 10 days in Jun-18. The unit holding pattern of the fund is highly concentrated with top ten investors representing ~95% of the fund, out of which 67% are owned investments, which reflects low level of redemption risk.
Going forward, the fund intends to maintain exposure in government securities and cash balances with portfolio duration not exceeding 60 days. The rating remains dependent on maintaining exposure with high credit quality instruments having credit ratings of ‘AA-‘ and above.
For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com