Contributions to the new Fund would come from the financial institutions backed by the guarantee of the federal government, thus any risk and reward would in turn belong to the government of Pakistan," NIT spokesman said in a statement issued here on Wednesday.
The spokesman strongly refuted the perception that the new Fund being launched from the platform of NITL would in any manner jeopardise the interest of its existing unit holders. He said that it was clarified on various occasions that existing Funds being managed by NITL for the general investors are insulated from the new Funds in all respects.
New Funds are separate legal entity and will be managed by NITL quite separately from its existing Funds; hence existing Funds are not being put to any risk, whatsoever. With reference to proposed 'Put Options' to be written by the management company, the spokesman clarified that "Put Options are part and parcel of the new scheme and would be written on behalf and backed by guarantee of government of Pakistan." As such benefits and risks relating to 'Put Options' would also go to government of Pakistan and in no way would affect the activities/affairs of existing Funds.
In fact, it is expected that when the market would stabilise, existing unit holders of NIT Funds would eventually reap the benefits of such stability, he added. The spokesman said that launching of Fund from the platform of NITL in fact shows the confidence of all stakeholders in the management of NITL as NITL has been considered as an entity, which possesses the capability to manage new Funds.-PR