KARACHI: National Investment Trust (NIT), the leading open-end mutual fund with a market share of 29 per cent as of May 31, has declared a cash dividend of Rs6.50 per unit for the year ended June 30.
NIT Chairman and MD Muhammad Nawaz Tishna announced this at a press conference following a board meeting held here on Tuesday.
Dividend for fiscal year 2007-08 is the highest in NIT’s history. It is also 30 paisa or 4.83 per cent higher than Rs6.20 last year.
The Trust would disburse a total of Rs10,490 million among unit-holders on account of dividend at Rs6.50 per unit against Rs10,034 million it distributed last fiscal year. Therefore, the NIT has registered a growth of nine per cent in dividend income, which increased to Rs3,344 million during the year just ended, against Rs3,082 million earned in 2006-07.
NIT has also realised capital gains of Rs929 million during the period under review. Net income earned by the Trust amounted to Rs4,013 million for the year.
“NIT has outperformed benchmark KSE 100-share index by a good margin of 4.4 per cent as Net Asset Value of NIT unit declined by 6.4 per cent from Rs56.18 as on June 30, 2007 (ex-dividend) to Rs52.58 on June 30, 2008, against a decline of 10.8 per cent in the 100-index during the same period,” Tishna calculated.
He added that the last quarter observed great volatility mainly due to apprehensions about the budget, tight monetary measures and the political situation in the country.
Despite these volatilities and a huge decline in stock index, NIT adhered to its policy of not selling in the falling market. Instead, NIT has been generating activities in the market with the view to pick value stocks and at the same time support the market through its operations.
He further said that NIT always works on delivery based purchases. This policy, under the guidelines of Board, has always yielded good results for the Trust, he added.
Source: The News, 2/7/2008