KARACHI, Nov 12: Investment Corporation of Pakistan (ICP) on Monday declared cash dividends on all but two of the 26 closed- end Mutual Funds under its management. The Board, which met at the Corporation’s head office in Karachi, was chaired by the new managing director Tariq Iqbal Khan. The period ended June 30, 2001 for which the dividend was declared, pertaining prior to the start of his term in office.

The board’s declaration of dividends on Monday showed improvement both in respect of range and quantum of payouts. Dividends on 24 out of the total 26 Mutual Funds were declared for the latest year ended June 30, 2001, compared with dividends on 15 Funds disbursed last year. Also, rates of payouts on all evidenced improvement over the earlier year, except in the case of three Mutual Funds: 17th, 23rd and 24th.

Following the fire episode in its offices back in March, ICP has discontinued preparation and release of ‘weekly statement of funds’ performance’—which compared Net Asset Value (NAV) of each of the Fund vis-a-vis their market price. H.Hatim Dayala, Acting senior vice president, Mutual Funds Department told Dawn that the records had been disrupted as a result of the fire but the Corporation was now all set to resume the announcement of NAVs beginning later this week.

The statement in March showed that all 26 Funds (including SEMF- A) were trading at the stock market, at varying discounts—of between 25 to 70 per cent— to their NAVs, which the Corporation interpreted positively as commanding higher ‘intrinsic value’ than was reflected by their market prices.

The dividends declared by ICP on Monday, ranged between 5 to 60 per cent; the latter on the 9th ICP, which posted improvement from 50 per cent paid in 2000. Dividends on other Mutual Funds declared on Monday were as follows: (previous year’s payout in parenthesis): 1st ICP: 13 (12) per cent; 2nd ICP 12 (nil) per cent; 3rd ICP 16 (10) per cent; 4th ICP 37 (30) per cent; 5th ICP 11 (nil) per cent; 6th ICP 25 (10) per cent; 7th ICP 9 (nil) per cent; 8th ICP 32 (20) per cent; 9th ICP 60 (50) per cent; 10th ICP 18 (15) per cent; 11th ICP 17 (15) per cent; 12th ICP 19 (nil) per cent; 13th ICP 28 (20) per cent; 14th ICP 18 (10) per cent; 15th ICP 10 (nil) per cent; 16th ICP 7.5 (7) per cent; 17th ICP 10 (12) per cent; 18th ICP 9 (nil) per cent; 19th ICP 17 (nil) per cent; 20th ICP 16 (nil) per cent; 21st ICP 5 (nil) per cent; 22nd ICP 6 (nil) per cent; 23rd ICP nil (3.5) per cent; 24th ICP nil (4.5) per cent; 25th ICP 6 (nil) per cent and SEMF 22 (12) per cent.

An ICP statement on Monday says: “Despite a year of declining values on the Stock market, ICP, the largest manager of closed end mutual funds in Pakistan, managed to show improved earnings, and payout for the year”. The aggregate value (at cost) of all ICP managed mutual funds was stated to be Rs2.812 billion at June 30, 2001, against their market value of Rs4.509 billion.

Aggregate paid-up capital of the Funds stood at Rs 3.140 billion. ICP had emerged from the red in the financial year 1999-2000, posting an operating profit of Rs 35 million, compared with an operating loss of Rs217 million incurred the year earlier.