Facing a plethora of difficulties including fluctuating interest rates, generally subdued investor participation, a lackluster and bleak political environment and capital markets have remained subdued throughout the year. And the effects can be seen clearly mirrored in the results posted by a majority of asset management companies in the country at the close of FY12. Same has been the fate of Pakistans eminent asset management company NITL and its flagship fund National Investment (Unit) Trust which registered a bottom line negative growth of 17 percent year on year at the end of FY12. In spite of a growth in dividend incomes and realised capital gains, NI(U)T managed to record net profit of Rs4.5 billion at the end of the year, down from Rs5.4 billion posted last year. While both dividend income and capital gains grew by a healthy margin - managing an increase of 25 and 69 percent respectively. Losses from re-measurement of investments and impairment losses on securities resulted in a 24 percent decline in earnings per unit, which ended up at Rs3.29 at the end of FY12. Overall, the premier asset management firm posted slightly healthier pay-outs for the other two funds under its management at the close of FY12. NITs Government Bond Fund saw a relatively fruitful year as compared to the NI(U)T, despite witnessing a 19 percent decline in income from government securities. Yielding Rs1.21 at the close of the year, up 17 percent from the same period last year, NIT-GB managed to keep itself steady despite slash backs in interest rates. This improved performance came mainly off the back of positive growths in both profits on bank deposits and mark-up on fixed income securities. Similarly, NIT-Income Fund also fared better than NITs flagship fund, yielding earnings of Rs1.46 per unit, up 32 percent compared to the earnings of Rs1.1 that were posted last year. NIT-Income Fund recorded net profit after taxation of Rs282 million at the close of FY12, managing a 36 percent improvement over last year. This bottom line growth came off the back of a hefty growth in profits on bank deposits, which touched Rs22.8 million, up from Rs8.6 million recorded last year. Moreover, income from TFCs grew by nearly 41 percent during the course of the year, reaching Rs80 million at the close of the year. However, going forward the short term outlook seems to be picking up for the capital markets, with the market remaining bullish last month mainly as a result of foreign buying activity which totalled dollars 31 million during July. Moreover, a number of factors including Standard and Poors decision to maintain its long term sovereign credit rating of "B" for Pakistan, despite Moodys rating downgrade, seems to have helped restore investor confidence somewhat, which will ultimately bode well for NITL.
========================================================= NATIONAL INVESTMENT TRUST ========================================================= (Rs mn) FY12 FY11 chg ========================================================= NI(U)T Fund - PAT 4,508 5,460 -17% NIT GBF - PAT 315 305 3% NIT Income Fund - PAT 283 207 37% =========================================================
Source : NIT
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