National Investment Trust Limited (NITL) - the mutual fund industry giant - continued to shine during nine months ended September 2014 with the profitability of its funds persistently sloping upwards.
NIUT (the equity fund) bags with itself a sturdy track record of outplaying its peers. Having the biggest fund size of Rs.65 billion in the industry as of September 2014, NIUT ranks as one of the best performing funds in terms of returns. During 9MCY14, the fund boasted a bottomline rise of a whopping 70 percent year-on-year. Capital gains on sale on investments had its due share in boosting the profitability growth during the period under review. This is the outcome of careful selection of stocks and proficient portfolio management of its investment managers.
In terms of total return, NIUT yielded a decent return of 3.5 percent, thus outpacing the benchmark KSE-100 by a wide margin which gained only 0.25 percent. Vagueness on the political front seems to have prompted the fund managers to inch down their exposure in equities. Equity exposure as of September 2014 stood at 95.3 percent as opposed to 97.3 percent in the corresponding period last year. Perhaps, a smart move in times of uncertain political circumstances!
As for NIT Government Bond Fund, the period ended on a heartening note with its bottomline showcasing a healthy growth of 68 percent year-on-year. With yields on PIBs dwelling on the higher side, the fund managers smartly raised its allocation in PIBs, thus stimulating the income earned from government securities. It not only helped in yielding higher returns, but has also resulted in the fund achieving a wider level of portfolio diversification.
NIT Income Funds bottomline inched up a tad where provisioning booked on a non-performing TFC kept a lid on funds profitability. On the other hand, soaring returns on PIBs helped the fund to land in green during the aforementioned period. Going onwards, company's management expects reversals of this provisioning in coming periods which in turn will lift its profitability.
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NITL - Earnings per unit (Rs.)
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9MCY14 9MCY13 chg
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National Investment Unit Trust (NIUT) 1.90 1.12 70%
NIT Government Bond Fund 0.2945 0.1753 68%
NIT Income Fund 0.1983 0.1945 2%
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Source: KSE notice
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