KARACHI, July 4: National Investment Trust Limited (NIT) declared dividend at Rs6.20 per unit, which effectively means distribution of Rs10 billion to the unit holders.

The dividend for the year ended June 30, 2007 approved by the Board on Wednesday, was stated to be the “highest ever” and represented 7 per cent improvement over dividend of Rs5.80 that the Trust had paid a year ago. But most analysts thought that there was no element of surprise in the payout, which was ‘in line with expectations’. The pundits’ forecasts ranged between Rs6 to Rs6.50.

Earning per unit for the year set new record at Rs12.24, which almost doubled per unit earnings of Rs6.19 last year.

Following the end of meeting of the Board and announcement of dividend at the stock exchanges, NIT chairman Tariq Iqbal Khan briefed the press about the Trust’s performance.

He pointed to a graph that showed NIT dividends to be on the rise for each of the last five consecutive years. Net Assets of the Fund crossed Rs100 billion and depicted growth of 57 per cent by increasing from Rs64 billion at the close of last year.

“NIT has consistently provided superior return to its unit holders and Net Asset Value (NAV) of the unit increased from Rs43.07 (ex-dividend) as of June 30, 2006 to Rs62.38 at the close of year under review (including dividend yield of 14.4 per cent on NAV at the beginning of the year)”, Mr Tariq says, and added that it worked out to a total return of 44.83 per cent for the year ended June 30, 2007, showing the Trust to have outperformed the benchmark KSE-100 index by 6.96 per cent.

In answer to queries, the NIT chairman said he was not troubled by the thought of any reversal in the bull-run at the stock market.

He said that the Trust had beefed up unrealised gains in the huge sum of Rs40 billion, which provided a comfortable cushion against any market meltdown.

He also prided on the portfolio which contained ‘blue chip’ high-dividend yielding stocks.

During the year ended June 30, 2007, the Trust earned net income of Rs19.8 billion, which was stated to be the highest ever net income and evidenced increase of 114.52 per cent from Rs9.2 billion earned in FY06.

Sale of NIT units (including CIPs) during the year under review stood at Rs14.74 billion, compared to Rs5.04 billion worth of units sold last year, reflecting 192.5 per cent growth. Redemption slowed down to Rs8.62 billion during the year, against Rs10.58 billion units redeemed last year.

As regards the Letter of Comfort (LoC) holders, Tariq Iqbal Khan said that on April 1, 2007, the Fund had been split into two parts; one representing LoCs and the other non-LoC holders. The two separate funds now managed by the company, he said, were to comfort and protect the general unit holders.

He informed that the LoCs had been extended for a further period of four months from June this year, when the first LoC was due for redemption.