National Investment Trust Limited, NIT's Government Bond Fund (NIT GBF) has received an overwhelming response from individuals, major corporations and financial institutions with a combined Pre-IPO and IPO subscription of over Rs 2.5 billion.
NIT, the largest and oldest asset management company with assets under management of approximately Rs 82 billion, has ventured into the Fixed Income fund management category for the first time with the successful launch of NIT Government Bond Fund (NIT GBF). Designed for risk adverse investors the Fund would invest in only Government Securities like Treasury Bills and Pakistan Investment Bond and maintain Cash in Bank Accounts having investment grade rating and above. The Initial Offer for NIT GBF was held from November 16, 2009 to November 18, 2009.
This fund's investment strategy would attract all those credit - sensitive investors looking to diversify to high quality securities and seeking good income while maintaining maximum safety of principal. The performance will be compared against a benchmark based on 70 percent average of weighted average yield of 6 months T-Bills auctions held during the period and 30 percent average of most recently published one month deposit rates of "A" and above rated schedule banks during the same period.
The weighted average time to maturity of the NIT GBF shall be over 90 days but shall not exceed 7.5 years. NIT GBF is the first fund in Pakistan in the Income Fund category restricted to invest only in Government Securities. NIT is also in the advanced stages of launching NIT Income Fund, which would operate like a normal Income Fund, the family of funds of NIT will increase to six funds, which include four Equity Funds and two Fixed Income Funds. These funds would help promote saving culture in the country.-PR