NIT funds deliver good performance

The National Investment (Unit) Trust, the countrys leading fund, posted a healthy year-on-year bottom-line growth of around 30 percent during the first nine months of the current fiscal year.
The NIT has registered a net profit of Rs4.34 billion (without impairments) during 9MFY12, thereby yielding an earning per unit of Rs3.23, as opposed to Rs2.85 during the same period last year.
The bottom-line growth is symptomatic of growth in dividend income and realised capital gains. This can be gauged from the fact that the Fund saw a hefty 37 percent year-on-year growth in its dividend income to Rs2.15 billion during 9MFY12. At the same time, realized capital gains grew by around 63 percent to Rs891 million.
The Funds Net Asset Value (NAV) amounted to Rs30.01 per unit as on March 31, glided higher by around seven percent since the start of the current fiscal year.
With exposure in equities, NIT-State Enterprise Fund (NIT-SEF) and NIT-Equity Market Opportunity Fund (NIT EMOF) flourished at the heels of growth in capital gains and dividend income.
With the KSE-100 index up by 10.31 percent during the first nine months of FY12, NIT EMOF outperformed the market benchmark index by a whopping margin of 7.8 percent.
The NIT Government Bond Fund (NIT-GBF) recorded a slight drop in its net income, hammered by a decline in income from government securities. This is down to redemptions and a decline in yields on sovereign instruments. The fund holds exposure in sovereign instruments and National saving bonds and yielded an annualized return of 9.5 percent to its unit holders.
Growth in income from fixed income instruments supported the performance of the NIT Income Fund, with the funds net profit up by 19 percent, year-on-year, to Rs185 million in 9MFY12.
The fund managed to yield an annualized return of around 12.69 percent to its investors, thereby outperforming its benchmark by 19 bps.