Printer Friendly

Performance of National Investment Trust Limited.

Performance of National Investment Trust Limited

The National Investment Trust Limited has declared dividend at the rate of Rs. 2.00 per Unit for the year ended 30-06-1990. Last year the dividend was paid at Rs. 1.90 per Unit. The Trust would therefore, pay a total sum of Rs. 1260.8 million in the shape of dividend to the Unit-holders on 630.4 million Units in issue and outstanding at the close of the year as against Rs. 835.6 million on 439.8 million Units paid last year. This was decided in the Board of Directors meeting of NIT held under the Chairmanship of Mr. A.N.G. Abbasi.

The Trust has recorded a phenomenal alround progress in its operations during the year of 1989-90. Gross and net sales of Units have established yet another new record and stood at Rs. 3156.4 million and Rs. 2370.7 million respectively as against Rs. 1720.4 million and Rs. 1362.4 million respectively of the previous year. The gross and net sales of Units in terms of value have registered an increase of 83.5% and 74.0% respectively over the preceding year. The sales of Bearer Units during the year aggregated Rs. 1276.9 million which is the highest ever recorded so far, as compared to Rs. 551.7 million in the preceding year.

The income during the year amounted to Rs. 1279.3 million as against Rs. 861.5 million in the preceding year, recording a rise of 48.5%. The gross and net equity investment during the year stood at Rs. 1342.0 million and Rs. 1004.8 million as against Rs. 947.0 million and Rs. 758.4 million respectively for the last year. Gross investment in shares purchased from stock exchanges during the year increased from 522.4 million in 1988-89 to Rs. 536.4 million in 1989-90. The total number of NIT Units in issue and outstanding as on 30th June 1990 was 630.4 million of the value of Rs. 7635.0 million as detailed below:
 (Figures in million)
 Units Value (Rs.) %
Registered 400.6 4808.3 63
Bearer 229.8 2826.7 37
 Total: 630.4 7635.0 100


The continued remarkable growth witnessed during the year in the net mobilisation of funds is a testimony of the confidence by the investors in NIT Units because of the regular and steadily increasing rate of dividend, the security of capital easy encashability in case of need and well managed planning in the field of Marketing. In this connection it may also be mentioned that consequent to the regular dividend declarations at consistently increasing rates from 50 paisa per Unit in 1964 to Rs. 2.00 per Unit in 1990, NIT has distributed more than Rs. 5 billion. Out of this the amount of dividend distribution during 1990 is going to be Rs. 1.26 billion i.e. 25 per cent of the total distribution during 26 years.

Another gratifying feature is the increasing interest shown by the registered Unit-holders in reinvesting their dividend income in the purchase of further Units under CIP Scheme (Cumulative Investment Plan). The value of the Units issued under the scheme in 1989-90 was Rs. 272.8 million as compared to Rs. 184 million in 1988-89.

Investment made under Morabaha, Lease Financing and TFCs stood at Rs. 3,105.1 million as against Rs. 1410.6 million in the previous year. It may be mentioned that NIT's share in the total turnover at the Stock Exchanges increased from 16.7 per cent in 1988-89 to 18.6 per cent in 1989-90.

As on 30th June, 1990 NIT's investment stood at Rs. 7081.7 million, at cost, and Rs. 9176.9 million at market value, showing an appreciation of Rs. 2095.2 million.

Under the provisions of the Trust Deed the Management Company is entitled to an annual service fee (called Management Participation) upto 1 per cent of the value of the Trust Fund as on 30th June each year, out of which the Trustee (National Bank of Pakistan) is paid 1/5th as its share. However, it has been the endeavour of NIT to keep the administrative cost as low as possible in the interest of the Unit-holders. Accordingly NIT has been charging management fee much below the permissible limit. The fee for management participation for 1989-90 charged is 0.18 per cent of the value of the Trust Fund as against 0.27 per cent in previous year.

The work of preparation of dividend warrants in respect of Registered Units is in progress and the despatch of dividend warrants to the Unit-holders is expected to start in the last week of August, 1990. The dividend warrants will be payable at 13 centres spread throughout the country so as to enable the Registered Unit-holders to collect the proceeds of their dividend warrants expeditiously.

For the facility of the Bearer Unit-holders, arrangement has been made that they can collect dividend on the Bearer Units on production of the Bearer Unit Certificates from 13th August 1990 from any authorised branch of National Bank of Pakistan in various cities throughout the country. In order to provide still better service one more branch of National Bank of Pakistan, Tariq Road, Karachi shall make payment of dividend against Bearer Units from this year.

Last year the sale and repurchase prices of the Units were fixed at Rs. 12.0 and Rs. 11.70 respectively on the reopening of transactions from 1st August, 1989. The prices remained at that level upto 17th August 1989 and were raised gradually from 19th August 1989 and onwards and they stood at Rs. 14.10 per Unit for sales and Rs. 13.80 per Unit for repurchases at the close of the year.

The sale and repurchase prices of the Units for the period from 4th to 9th August 1990 are being fixed at Rs. 12.20 per Unit and Rs. 11.90 per Unit respectively, after declaration of dividend at the rate of Rs. 2.00 per Unit and the transactions in Units will recommence at these rates from 4th August, 1990.

During the year 1989-90 one new branch of NIT has been opened and started functioning at Abbottabad. It is proposed to open shortly one more branch office at Sialkot.
COPYRIGHT 1990 Economic and Industrial Publications
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1990 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Economic Review
Article Type:company profile
Date:Aug 1, 1990
Words:1054
Previous Article:German doctors in Pakistan.
Next Article:Plight of pharmaceutical manufacturers.
Topics:


Related Articles
NATIONAL CITY TRUST COMPANY ELECTS GARY L. GALBREATH PRESIDENT
NATIONAL CITY CORPORATION NAMES ALAN J. DAVIDSON CHIEF FIDUCIARY OFFICER OF NATIONAL CITY TRUST
NATIONAL CITY CORPORATION ANNOUNCES ELECTION OF GARY L. GALBREATH AS EXECUTIVE VICE PRESIDENT AND TRUST LOCATION HEAD OF NATIONAL CITY BANK, COLUMBUS
NATIONAL CITY CORPORATION REPORTS TRUST MANAGEMENT CHANGES
NATIONAL CITY TRUST COMPANY ELECTS ELLEN J. ABRAMS PRESIDENT
ARMADA FUNDS Select New Service Providers
Boatmen's William Ottinger Joins Harris Bank to Lead Private Banking Sales Effort
DCR Lowers Bankers Trust's Senior Debt Rating to 'A-'.
National City Bank Announces New Head of Corporate Trust.
Timothy McDonough Tapped to Direct Client Services at National City Investment Management Company.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters