‘Element of income’ causes volatility on earnings: NIT


The National Investment Trust Limited (NITL), the country’s first and largest asset management company, has declared results for all funds under its management for the year ended 30th June 2013.
This was stated by NIT Acting Managing Director Manzoor Ahmed in a statement issued by NITL on Thursday after its board of directors approved the annual accounts of all funds under its management. He said as of 30th June 2013, NIT is managing 5 funds with net assets under management of around Rs 81.0 billion.
NIT has declared a dividend at Rs 3.75 per unit for unit holders for the year compared to Rs 3.50 per unit for 2012. The payment of dividend at Rs 3.75 per unit would involve a huge cash payout of Rs 4,182 million among its unit holders.
The acting MD said during FY13, the fund earned a total return of 58.4 percent where its NAV increased from Rs 26.77 (Ex-Dividend) as on June 30, 2012 to Rs 42.41 as on June 30, 2013 against the benchmark KSE-100 index which increased by 52.2%. Thus the NIUT Fund outperformed its benchmark by a healthy margin of 6.2 percent.
During FY13, NI(U)T Fund realised capital gains of Rs 4,448 million against Rs 1,439 million in FY12, depicting a huge growth of over 209 percent YoY. The dividend income earned by the fund grew by 16.6 percent YoY and stood at Rs 2,822 million as compared to Rs 2,421 million in FY12.
With a substantial increase in the stock market, many investors opted to book capital gains by redeeming their units. The fund witnessed an unprecedented amount of redemption to the tune of Rs 17.2 billion during FY2013. All redemptions were met in a timely manner to the utmost satisfaction of investors.