National Investment Trust (NIT) has once again outperformed its benchmark of KSE-100 by a healthy margin of 6.3 percent during the period July 1, 2003 to June 11, 2004 where its net average value (NAV) increased by 64.5 percent against 58.2 percent last year.
"This shows the professional commitment of its management to consistently provide high returns to its unit-holders", said Chairman National Investment Trust Tariq Iqbal Khan while addressing a press conference here on Wednesday.
'As a result of its concerted marketing efforts the sale of NIT units totalled Rs 7.19 billion during the first nine months that resulted into a positive sales of Rs 400 million as compared to a negative sales of over Rs 2 billion during the same period last year that depicts the increasingly growing confidence of its investors, he said.
The NIT chairman said that the net income of the fund (excluding unrealised gains) increased by 65.6 percent to Rs 3,578 million against Rs 2,161 million earned during the corresponding period of previous year.
As a result of its increased trading activities, capital gains realised during this period amounted to Rs 1,688 million that are remarkably higher by 169 percent compared to Rs 627 million in the similar period of last year, he added.
Tariq Iqbal said that the ongoing strategy of the fund to gradually restructure its portfolio by switching from no/low dividend paying stock to those with attractive yields has also helped achieve a growth of 12.9 percent in its dividend income that appreciated to Rs 2,061 million up to third quarter of 2003-04 as against Rs 1,826 million for the same period of previous year.
He said that all this performance led to a growth of 56.2 percent in its earning per unit that increased to Rs 2.28 during the first nine months of 2003-04, from Rs 1.45 during corresponding period of previous year.
The net assets of the fund have shown a robust growth of 68 percent, increased from Rs 31,629 million on June 30, 2003 to Rs 53,216 million as on June 11, 2004, the chairman added.
Responding to various questions, Tariq Iqbal said that NIT has safeguarded the interests of its investors. He said that NIT has made arrangements to absorb at least 10 percent decline in stock market trading and recent decline in stock exchange index has not disturbed NIT as amount of redemption is not high.
About levy of CVT on shares' transactions, the NIT chairman said this step would hit the stock business. He hoped that the government would resolve this issue in an amicable way. He said that NIT is not launching any new product as it is on agenda of Privatisation Commission of Pakistan.