LAHORE, Nov 5: National Investment Trust (NIT) outperformed the benchmark KSE-100 by 9.2 per cent in the first four months of the current fiscal year as its Net Asset Value rose to Rs15.05 on November 1, from Rs10.99 on July 11 (first day after book closure), showing an increase of 36.9 per cent as compared to 28.7 per cent rise in KSE-100 index during the same period.

This was stated by NIT chairman Tariq Iqbal Khan while talking to reporters here on Tuesday.

He said the total return on NIT units for FY02 was 38 per cent inclusive of a dividend of 13 per cent or Rs1.20 per share. “This performance not only exceeded 36 per cent return of the benchmark KSE-100 share index but was also the best performance amongst all open-ended mutual funds. Only 9th ICP Mutual Fund, with a massive dividend payout in FY02 due to one-time capital gain, has yielded a higher return in the entire mutual fund sector, including close- ended funds.”

Mr Khan attributed the improved NIT performance to its “portfolio restructuring undertaken in October last year”. In spite of large redemptions in early part of last year (net redemptions of almost Rs1.60 billion), NIT managed to maintain its liquidity as well as dividend payout at the previous year’s level.

NIT sold off what its chairman called as illiquid portfolio of Rs1.45 billion during FY02. In the first four months of this year it has been able to sell off illiquid portfolio of Rs250 million, the chairman said. He said the fund is also “improving its liquid portfolio, rolling over and settling its long-term borrowing, and marketing for enhanced the sale of units besides disposing of its illiquid portfolio in order to improve dividend yield to NIT unit holders.

He added the portfolio restructuring aimed at generating income, preserving capital, and achieving growth. This effort was being supported by active trading of shares in the market.

He said the “dividend yield was expected to increase to Rs1.85 billion at the end of this year from last year’s Rs1.70 billion.” “We hope that our gross income would cross Rs2.3 billion.”

He said the funds under management had increased from Rs17.40 billion at the end of FY01 to Rs20.10 billion as on June 30, 2002, and to Rs25.50 billion on November 1, 2002.