Lahore, June 29, 2012 (PPI-OT): Pakistan Credit Rating Agency has assigned an asset manager rating of “AM2-” (AM Two Minus) to National Investment Trust Limited (NITL). The ratings reflects the company’s very strong capacity to manage the risks inherent in the asset management business and the asset manager meets very high investment management industry standards and benchmarks.
The rating reflects the company’s strong franchise value, experienced management team, and intensive investment management process. NITL’s demonstrated track record, expansive outreach and penetration into the retail segment are considered some of its key strengths.
Backed by its sound financial profile, the company carries the ability to take several initiatives to strengthen its infrastructure while expanding assets under management.
The extensive equity research covering sizeable portion of the listed companies provides NITL a competitive edge. NITL, through its multiple funds, has significant stake in local stock market. The sheer size makes it difficult to make nimble moves and outperform broader market; hence, average performance for its equity funds. However, for its income funds, upside potential exists.
The rating is dependent on the company’s ability to effectively leverage on its extended outreach to enhance penetration in the retail market commensurate to its size and history. Retention of key human resource would be important.
At the same time, independence of the company from the major shareholder is also important. Meanwhile, stable and strong fund performance remains crucial.
For more information, contact:
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