By Tanveer Ahmed
KARACHI: National Investment Trust (NIT) is set to launch two more new funds–NIT Government Bond Fund (NIT-GBF) & NIT Income Fund (NIT-IF)— the modalities for which are almost complete.
“Government has given us the go-ahead signal to launch these new funds,” Tariq Iqbal Khan, Chairman & Managing Director (MD) NIT told a selective group of journalists at NIT head office here on Friday.
He said that NIT-GBF will be hopefully operative before Eid and Income Fund will also be following it shortly.
Giving details of the two new funds, NIT chief said that it would be first time that NIT would be investing in government securities like treasury bills, PIBs through NIT-GBF Fund. “This fund will offer good investing avenue with lower risk and government would be issuer of this fund,” he said.
Tariq said that it was the long-standing demand of the NIT customers to provide them with the opportunity to invest in the government securities because a retail investor is not able to directly investment in government bonds and securities.
NIT-IF, he added, will be normal income fund and government would also be issuer in this case and this fund would invest in both private and government securities like TFCs and other bonds.
The plan to create a bond market at the stock market would also be fruitful for the funds like NIT-IF, Tariq responded when asked about the trading of this fund in bond market, for which plan is under consideration. He revealed that State Bank of Pakistan (SBP) is also actively supporting this plan.
He said that Securities & Exchange Commission of Pakistan (SECP) has given the approval of NIT-GBF and trust deed has also been signed whereas the procedure for seeking the approval from relevant authorities is underway.
Talking about the performance of NIT particularly during the crash at stock market, Tariq Iqbal said that two funds launched by NIT performed exceptionally well despite the turbulent situation at the stock market.
According to him, NIT Equity Market Opportunity Fund (NIT-EMOF) has recorded unrealised gains of 15 percent whereas unrealised gains of NIT-State Enterprise Fund (NIT-SEF) were around 75 percent.
“This was robust performance of these funds when seen in the backdrop of stock market situation when these were launched,” he noted and added that Rs 11 billion out of Rs 20 billion NIT-SEF have been invested so far.
Eyebrows were raised at the launch of these funds with the allegation that it would be futile investment in a jittery market. However, we proved it wrong and today the gains itself speak about the right decision taken at that time to support the market in the crisis.
Chairman NIT said that due to vibrant policies, the retail investors base also expanded and the number jumped to 56,000 retail investors at the moment from 53,000 last year.