KARACHI, Feb 4: All the 25 closed-end mutual funds managed by Investment Corporation of Pakistan (ICP) continued to trade at discounts to their Net Asset Value (NAVs) at the end of January, a statement by the ICP showed.

The Corporation had recently resumed the release of NAV statements, which were discontinued after part of its offices caught fire in March last year, causing disruption in work.

The latest statement from ICP showed that the market price of at least six mutual funds had scaled their par value, yet their NAVs remained higher by up to 58 per cent.

“Depending on how one looks at it, the mutual funds appear to be undervalued and, therefore, possibly attractive,” says a financial analyst.

The ninth ICP carried the highest market price tag among the lot- Rs22.80 at January 28; its NAV stood 12 per cent higher at Rs25.87. Investors have received the highest payout

on the 9th Fund; at 50 per cent for each of the previous two years and at 60 per cent for 2001.

The 18th Fund with the NAV of Rs10.09, traded at just Rs3, marking the deepest discount. The Fund had yielded 9 per cent dividend for 2001, though the preceding two years were blank. Other mutual funds, ruling at heavy discounts to the NAVs included: 24th Fund (NAV: Rs4.32; market price: Rs1.30); 25th Fund (NAV: Rs7.89; market price: Rs2.45); 23rd Fund (NAV: Rs 3.87; market price: Rs 1.20) and 21st Fund (NAV: Rs5.05; market price: Rs1.65).

Closest gap between the NAV and market price—after 9th Fund—was noted in SEMF-A, which posted the NAV at Rs23.30 and market value of the certificate at Rs13.40. The Corporation had paid 22 per cent dividend on this Fund. For the year ended June 30, 2001, ICP (SEMF) had reported after-tax profit of Rs198 million, which was nearly Rs100 million more than the earlier year.

Dividend amounting to Rs 163 million, provided the bulk of income. At end-June 2001, ICP SEMF held investment in quoted shares of Rs868 million with the market value of the portfolio at Rs2,063 million.

The Fund had the largest stake in KESC and Shell Pakistan—Rs131 million in the former and Rs107 million in the latter.