NIT ANNOUNCES RESULTS FOR FY13
July
04 2013: National
Investment Trust Limited (NITL), the first and largest Asset Management Company
of Pakistan has declared results for all Funds under its management for the year
ended 30th June 2013. This was stated by Acting Managing Director –
NIT, Mr. Manzoor Ahmed in a press release issued by NITL on July 04, 2013 after
its Board of Directors approved the annual accounts of all Funds under its
management. He further stated that as of 30th June 2013, NIT is
managing 5 Funds with net assets under management of around Rs. 81.0 billion.
NI(U)T
Fund
NIT has declared a dividend @ Rs. 3.75 per unit for unit holders of NI(U)T for the year ended June 30, 2013 as
compared to Rs. 3.50 per unit for the year ended on 30th June 2012. The payment
of dividend @ Rs.3.75 per unit would involve a huge cash payout of Rs.4,182
million among its unit holders.
The Acting MD stated that during
FY13, the Fund earned a total return of 58.4% where its NAV increased from Rs.
26.77 (Ex-Dividend) as on 30.06.12 to Rs. 42.41 as on 30.06.13 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%.
During FY13, NI(U)T Fund realized capital gains of Rs. 4,448 million
against Rs. 1,439 million in FY12, depicting a huge growth of over 209%
YoY. The dividend income earned by the
Fund grew by 16.6% 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 the year ended on 30th June 2013. All
redemptions were met in a timely manner to the utmost satisfaction of
investors. However, NIT expects these investors to reinvest at an opportune
time. The accounting treatment of element of income which resulted due to huge
redemptions impacted the core earnings of the Fund negatively. However, in
spite of all this, the Fund registered a
net income of Rs. 1,365 million translating into earning per unit of Rs. 1.22
compared to a net income of Rs. 4,508 million translating into earning per unit
of Rs. 3.29 last year. Nevertheless, excluding the
element of income, NIUT earned an income of Rs. 7,129 million (EPU of Rs. 6.39)
during FY13 from its operating activities compared to Rs. 2,577 million (EPU of
Rs. 1.88) during last year, showing a remarkable growth of 177% YoY in income
from operating activities. During FY13, gross sales of units (including CIP)
increased by 23% and stood at Rs. 8,974 million, compared to Rs. 7,298 million
in FY12.
Mr. Manzoor Ahmed explained that
existing accounting policy of recognition and determination of “element of
income” causes unnecessary volatility on the bottom line earning of the Fund as
it heavily depends upon sale & repurchase of units rather than purely on actual
performance of the Portfolio management. It overshadows the core earnings realized
through operating activities of the Fund. He further stated that after a
thorough study, the issue of “element of income” was discussed in length in the
meeting of the Board of Directors in the presence of Auditors wherein it was
decided to resolve this issue once for all across all funds under management of
NITL. After approval from Board of Directors, an appropriate policy for “element
of income”, as per the international accounting standards and worldwide
industry practices, has been adopted with effective from 1st July
2013. Thus, in future, the results of the Funds would reflect the core earnings
based on quality portfolio management.
NIT-State
Enterprise Fund (NIT-SEF)
While referring to the results of
NIT-SEF for the year ended June 30, 2013, the MD-NIT stated that NITL has
declared a bonus @ 12.92% on the
face value of Rs. 50/- for the unit holders of NIT-SEF.
While presenting a brief on the
results of NIT-SEF, the Acting MD said that during
FY13, the Fund recorded an impressive growth of 177% in
realized capital gains which stood at Rs 4,589 million against capital gains of
Rs 1,658 million in FY12. The Fund also earned a dividend income of Rs 1,134
million compared to Rs 1,259 million last year.
The Fund’s NAV
increased by 40.90% from Rs. 84.67 (Ex-Dividend) as on 30.06.12 to Rs. 119.3 as
on 30.6.13 against an increase of 52.2% in the benchmark KSE-100 Index. However, since inception, the Fund
has massively outperformed its benchmark by 33.94%.
Mr. Manzoor Ahmad further stated that
as per the instructions of Government of Pakistan to gradually repay the loans
obtained for NIT – State Enterprise Fund, NIT has repaid an amount of Rs 13.7
billion to the financiers of SEF till 30th June 2013 out of the
total loans of Rs. 17.2 billion. Thus, the borrowing now stands at just Rs. 3.5
billion. As a result of redemption of units to repay to the financiers of the
Fund, NIT-SEF also witnessed a negative element of income. Despite the negative
element of income, the Fund earned a net income of Rs. 958 million in FY13 translating
into earning per unit of Rs. 4.67 against Rs. 1,201 million translating into earning
per unit of Rs. 4.27 during FY12, showing over 9% growth in earning per unit.
NIT – Equity Market
Opportunity Fund (NIT-EMOF)
While unveiling the results of
NIT-EMOF, MD-NIT informed that the Board has declared a bonus of Rs. 20 per unit for its unit holders for
the year ended June 30, 2013.
Referring to the result of NIT-EMOF,
the Acting MD said that during the period under review, the Fund earned a
net income of Rs. 849 million (earning per unit of Rs. 18.81) compared to Rs. 337
million (earning per unit of Rs. 7.10), a growth of 152% YoY in the net income.
During FY13, the Fund earned a dividend income of Rs. 341 million compared to
Rs. 357 million in FY12 whereas, the capital gains realized by the Fund
during FY13 stood at Rs. 782 million compared to Rs. 433 million in FY12, a
huge growth of 80.7% YoY.
The Fund’s NAV
increased by 41.85% from Rs. 127.37
(Ex-Dividend) as on 30.06.12 to Rs. 180.68 as on 30.06.13 against an increase
of 52.20% in the benchmark KSE-100
Index. However, since its start, NIT-EMOF has outperformed its benchmark by a
healthy margin of 21.39%. During the period under review, further redemptions
of 15% holdings of units were offered to the investors of the Fund. Since
inception to date, the Fund has offered total redemptions of 65% to its unit
holders.
NIT Government Bond
Fund (NIT-GBF):
Acting
MD – NIT informed that NIT has declared a per unit distribution of Rs. 0.8803 for unit holders of NIT GBF.
Those who have opted for growth units with the option to receive bonus will be
allocated 8.7303 units per 100 units
at the ex-dividend NAV.
During
FY13, the Fund has earned a net income of Rs. 385 million as compared to Rs.
315 million in FY12. Net income translates into a per unit earning of Rs. 0.98
as compared to Rs. 1.21 per unit last year.
The
NAV of NIT GBF increased from Rs.
9.9729 (Ex dividend) as on June 30, 2012 to Rs. 10.9636 as on June 30, 2013,
thus yielding an annualized return of 9.93% compared to the benchmark return of
8.80% hence outperformance by a good margin of 1.13%. As of June 30, 2013 the
net assets of NIT Government Bond Fund have increased by almost 53% in the
current fiscal year and stood at Rs. 4.8 billion.
NIT Income Fund
(NIT-IF):
For
NIT IF, NIT declared a per unit distribution of Rs. 1.0590 Those who have opted for growth units with the option to
receive bonus will be allocated 10.3668
number of units per 100 units at the ex-dividend NAV.
During
FY13, the Fund earned a net income of Rs. 346 million as compared to Rs.283
million the previous year. This net income translates into per unit earning of
Rs. 1.16 as compared to Rs. 1.46 per unit last year.
The NAV
of NIT IF increased from Rs. 10.2901 (Ex-Dividend) as on 30th June
2012 to Rs. 11.2743 as on June 30, 2013, thus, yielding an annualized return of
9.56% compared to the benchmark return of 9.92% hence underperformance by margin
of 0.36%. As of June 30, 2013 the net assets of NIT Income Fund increased by
about 40% over the current fiscal year and stood at Rs. 3.7 billion which
reflects the growing confidence of investors.
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