National Investment Trust (NIT), the largest asset management company of Pakistan, has declared a net income after taxation of Rs5.4 billion for its premier fund National Investment Unit Trust (NIUT) for 2013-14, according to a notice sent to the Karachi Stock Exchange on Thursday.
NIUT’s net income for the last fiscal year is almost 300% higher than the net income of Rs1.3 billion that it posted at the end of 2012-13.
The substantially higher profits seem to be a result of the smaller capital losses included in the price of units issued (less those in units redeemed). They amounted to Rs248.9 million in 2013-14, about 95% less than Rs5.7 billion recorded in 2012-13.
This is why the net profit increased substantially despite 18.7% reduction in the fund’s net income from operating activities, which equalled Rs5.7 billion in the last fiscal year.
Interestingly, NIUT’s dividend income, capital gains, income from government securities, profit on bank deposits, and income on issue of units – i.e. all but one item under the income head – showed a year-on-year decrease in 2013-14. Similarly, expenses of NIUT also rose 9.5% during the last fiscal year.
Yet the earnings per share of NIUT in 2013-14 clocked up at Rs5.13 as opposed to Rs1.22 in 2012-13, thanks to capital losses included in the price of units issued (less those in units redeemed).
As for NIT’s Government Bond Fund, the net profit for 2013-14 remained Rs304.7 million, down 20.8% from the earnings of Rs385.1 million recorded in the preceding fiscal year. This was despite the fact that the fund’s decrease in income from operating activities was relatively low (5.9%) during the last fiscal year.
The net profit of NIT’s Income Fund amounted to Rs227.8 million in the last fiscal year, which was 34% less than the earnings recorded in the preceding 12 months.
This appears to be on the back of higher expenses, which totalled Rs103.1 million in 2013-14, up 87.3% from the comparable figure in the preceding fiscal year.
This is why net income from operating activities decreased 15.3% on a year-on-year basis despite a nominal increase of 1% in the fund’s income in 2013-14.
Published in The Express Tribune, September 5th, 2014.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ