KARACHI: Tariq Iqbal Khan, Chairman and Managing Director of the National Investment Trust (NIT), announced on Wednesday a record dividend of Rs.6.20 per unit for financial year 2007 as compared with Rs.5.80 per unit for financial year 2006. Speaking at a press conference at a local hotel after approval of the dividend by the Board of DirectoRs., he said the unit holdeRs. would get dividend warrants by the end of second week of next month.


He said the net assets of the NIT had grown by 57 percent from Rs.64.296 billion on June 30, 2006 to Rs.100.963 billion on June 30, 2007. According to him, NAV per unit has grown from Rs.43.07 to Rs.62.38, showing a growth of 44.83 percent. The premier mutual fund of the country has once again outperformed the benchmark KSE-100 index by 6.96 percent. He informed that as of April 1, 2007 the fund had been split into two parts representing LOC and Non-LOC holdeRs., and now the NITL being the management company was managing two separate funds.


The LOC parts of the fund contain investments made by four commercial banks of the country in NIT units and the remaining part contains general investoRs.. According to him, the splitting of the fund into two parts would ensure safety nets for both types of investoRs..


He said the NIT had realized an all-time high capital gains of Rs.16.818 billion in financial year 2007 as compared with Rs.6.805 billion recorded last year, showing a growth of 147 percent in capital gains of the NIT. This huge capital gains realized by the Trust was mainly attributable to the block sale of the NIT's holding in Lakson Tobacco, PICIC, Prime Bank, gains through rightsizing of portfolio as well as gains realized through normal trading activities. The gains realized through rightsizing of portfolios stood at Rs.11.07 billion.


The sale of NIT units during the year ended on June 30, 2007 stood at Rs.14.74 billion as against the sale of units worth Rs.5.04 billion in the previous year, depicting a huge increase of 192.5 percent in the sale of units over the previous year.


NIT units worth Rs.8.62 billion were redeemed during the year under review as against the units worth Rs.10.58 billion redeemed last year.

The NIT, according to Khan, earned a net income of Rs.19, 813 million, which was the highest-ever net income earned by the NIT in its entire life. The net income of the NIT depicts a growth of 114.52 percent increasing to Rs.19, 813 million in financial year 2007 from Rs.9, 236 million in financial year 2006.


This translates into the record earning per unit of Rs.12.24 in financial year 2007 as compared with the earning per unit of Rs.6.19 earned by the NIT in financial year 2006, thus earning per unit for the financial year 2007 surpassed last yearís highest-ever per unit mark by 97.74 percent.