NIT has earned a net profit of Rs 877 million and Rs 742 million in respect of LOC-Fund and Non-LOC Fund respectively in the half year period ended December 31, 2008. This was stated by Tariq Iqbal Khan Chairman and MD - NIT in a press release issued here on Thursday after the Board of Directors of National Investment Trust Limited approved the accounts of both LOC and Non-LOC Funds for the said period.
During the half year of FY09, Non LOC Fund of NIT outperformed the benchmark of KSE-100 Index by a reasonable margin of 1.2 percent where Net Asset Value of its units declined by 51.1 percent from Rs 46.38 as on June 30, 2008 (Ex-Dividend) to Rs 22.69 as on 31.12.08 against the decline of 52.3 percent in KSE-100 index during the same period. Likewise, LOC Fund of NIT has outperformed the benchmark of KSE -100 index by a slight margin of 0.3 percent where Net Asset Value of its units declined by 52.0 percent from Rs 45.73 as on June 30, 2008 (Ex-Dividend) to Rs 21.94 as on December 31, 2008.
Referring to the half yearly results Tariq Khan stated that Non-LOC Fund has registered a growth of 2.3 percent in dividend income which increased to Rs 1,017 million earned by the Fund during half year ended 31st December 2008 from Rs 994 million earned by the Fund during the corresponding period last year. This reflects that the ongoing strategy of the Trust to restructure its portfolio is yielding good results. During the half year under review, NIT - LOC Fund earned a dividend income of Rs 799 million.
It may be noted that during H1FY09 events, like global financial crisis and their impact on domestic economy, freezing of KSE-100 index on August 27, 2008 at the level of 9,144 till 15th December 2008 hit the market hard and reduced the volumes to historic low level. Despite all the volatilities which range bounded the trading activities at Stock Exchanges, NIT has realised a capital gains of Rs 29 million and Rs 28 million relating to LOC Fund & Non-LOC Fund respectively against consolidated gains of Rs 476 million in the comparable period of last year.
Net profits earned by the Funds translate into earning per unit of Rs 0.93 for LOC Fund and Rs 0.78 for Non-LOC Fund despite the fact that the stock market has witnessed unprecedented bearish spell during this period. It may be necessary to mention here that if impairment loss in shares held for trading is accounted for then it would present a per unit loss of Rs 0.19 in half yearly accounts of Loc Holders' Fund and Rs 2.41 in Non-LOC Holders' Funds.
It may be worth mentioning that in spite of economic meltdown and its ultimate affect on mutual fund industry, sale of NIT units (excluding CIPs) in respect of Non-LOC Funds stood at Rs 2,421 million during the half year ended 31st December 2008. Gross Sale of NIT units (including CIPs) for Non-LOC Fund was recorded at Rs 4,436 million against redemption of Rs 702 million during the same period under review which shows the growing confidence of investors in NIT.-PR
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