| GEO Business|
| NIT declares 8.2pc bonus for SEF|
| Updated at: 1543 PST, Tuesday, February 16, 2010|
KARACHI: National Investment Trust on Monday declared 8.24 per cent bonus for unit-holders of its State Enterprise Fund (NIT-SEF) for the half year ended December 31, 2009.
It also announced that the company earned profit after tax of Rs2,322 million in its oldest fund — the National Investment Trust (NIT).
NIT-SEF earned net profit of Rs1,081 million, which translated into earning per unit of Rs5.12 for the half year. Dividend income earned by the Fund stood at Rs433 million.
Breakup of the Rs2,322 million profit for NIT showed the Trust earned Rs1,135 million for NIT Non-LOC Fund and Rs1,187 million for NIT-LOC Fund. In the corresponding period last year, the two funds (Non-LOC and LOC) had posted a loss of Rs14,845 million and Rs10,766 million respectively.
Earning per unit was Rs1.63 and Rs1.61 for non-LOC and LOC funds respectively compared to loss per unit of Rs15.61 and Rs11.43 in the corresponding period of previous year.
During the July-December 2009 period, value of non-LOC unit increased by 28 per cent from Rs23.89 on June 30, 2009 (ex-dividend) to Rs30.58 on December 31, 2009 against increase of 31 per cent in the benchmark Karachi Stock Exchange 100-share index. Value of LOC fund increased by 28.25 per cent from Rs21.77 on June 30, 2009 (ex-dividend) to Rs27.92 on December 31, 2009.
“The funds under-performed the benchmark KSE-100 index by three per cent and 2.8 per cent respectively. This is attributable to few stocks held by the funds which are not performing in line with the market. However, since these stocks are fundamentally strong, we expect them to outperform the market in the period ahead.
“In the second half, the market is expected to show a healthy performance due to upcoming result season and expected better payouts by blue-chip companies,” said an NIT press statement.
In the first half, non-LOC fund realised capital gains of Rs407 million against Rs28 million in the corresponding period of last year, showing an extraordinary growth of 1,347 per cent.
Likewise, LOC fund recorded capital gains of Rs188 million against Rs29 million last year, showing a substantial increase of 549 per cent. Referring to the half-year results, the NIT chairman said non-LOC fund got dividend income of Rs702 million while LOC fund made dividend income of Rs584 million.
NIT-EMOF: NIT Equity Market Opportunity Fund was launched on September 14, 2009 and by December 31, 2009, the fund had earned net profit of Rs164 million. It translated into earning per unit of Rs2.95. During the period, the fund got dividend income of Rs108 million.
NIT-GBF: The Trust successfully launched NIT Government Bond Fund in November 2009. Investors showed their trust in the largest and oldest asset management company in Pakistan as the combined pre-IPO and IPO subscription crossed Rs2.5 billion. At present, the size of the fund has grown to around Rs3.83 billion.
During this period of about one and a half month, NIT-GBF earned net income of Rs33 million and earning per unit stood at Rs0.13, the board of directors noted.