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    02FMR - February 2012

    Uploaded by

    Mansoor Baig
    The document provides a fund manager report for the National Investment Unit Trust (NI(U)T) fund for February 2012. Some key points: - The NI(U)T fund objective is to maximize returns through dividends and long-term growth via a diversified portfolio. - In February, the KSE-100 index increased 8.4% while the NI(U)T NAV increased 3.8%, underperforming the benchmark. - The top sector holdings are oil & gas, chemicals, and banks, making up over 50% of total assets. - Risks to further market momentum include deteriorating balance of payments and expected higher inflation.

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    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd

    02FMR - February 2012

    Uploaded by

    Mansoor Baig
    33 views1 page
    The document provides a fund manager report for the National Investment Unit Trust (NI(U)T) fund for February 2012. Some key points: - The NI(U)T fund objective is to maximize returns through dividends and long-term growth via a diversified portfolio. - In February, the KSE-100 index increased 8.4% while the NI(U)T NAV increased 3.8%, underperforming the benchmark. - The top sector holdings are oil & gas, chemicals, and banks, making up over 50% of total assets. - Risks to further market momentum include deteriorating balance of payments and expected higher inflation.

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    02FMR- February 2012

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    The document provides a fund manager report for the National Investment Unit Trust (NI(U)T) fund for February 2012. Some key points: - The NI(U)T fund objective is to maximize returns through dividends and long-term growth via a diversified portfolio. - In February, the KSE-100 index increased 8.4% while the NI(U)T NAV increased 3.8%, underperforming the benchmark. - The top sector holdings are oil & gas, chemicals, and banks, making up over 50% of total assets. - Risks to further market momentum include deteriorating balance of payments and expected higher inflation.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    33 views1 page

    02FMR - February 2012

    Uploaded by

    Mansoor Baig
    The document provides a fund manager report for the National Investment Unit Trust (NI(U)T) fund for February 2012. Some key points: - The NI(U)T fund objective is to maximize returns through dividends and long-term growth via a diversified portfolio. - In February, the KSE-100 index increased 8.4% while the NI(U)T NAV increased 3.8%, underperforming the benchmark. - The top sector holdings are oil & gas, chemicals, and banks, making up over 50% of total assets. - Risks to further market momentum include deteriorating balance of payments and expected higher inflation.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    of 1

    NATIONAL INVESTMENT UNIT TRUST

    FUND MANAGER REPORT - February 2012 NI(U)T Objective


    The core objective of NIT is to maximize return for Unit holders, provide a regular Fund Type stream of current income through dividends, while long term growth is achieved by the management of diversified portfolio and investments into growth and high Category yielding equity securities.
    Launch Date Open-End Equity 12th November 1962 1.00% 3.00% 0.00%
    KSE-100

    Fund's Information
    Trustee Auditors Pricing Mechanism Valuation Days* Dealing Days* AMC Rating Risk Profile Fund Manager Cutt-off timing National Bank of Pakistan A.F Ferguson & Co. Forward Pricing Daily (Monday to Friday) Daily (Monday to Friday) AM2- (JCR-VIS) Moderate / High Manzoor Ahmed
    9.00 AM to 3.30 PM (Mon to Fri)

    Profile of Investment Managers


    National Investment Trust Ltd. (NITL) is the first Asset Management Company of Pakistan, formed in 1962. NITL is the largest asset management company of Pakistan with approximately Rs. 75 billion assets under management. The family of Funds of NIT comprises of six funds including 4 equity Funds and 2 fixed income nature Funds. NIT's distribution network comprises of 22 NIT branches, various Authorized bank branches all over Pakistan and Arab Emirates Investment Bank (AEIB) in Dubai(UAE). The Board of Directors of NITL consists of representatives of leading financial institutions, prominent industrialists and nominee of Govt. of Pakistan. The Company has been assigned an Asset Manager rating of AM2- by JCR-VIS Credit Rating Company Limited, which denotes the stable outlook of the company and the asset manager meets high investment management quality standards. All Investment decisions are taken by the Investment Committee of NITL.

    Management Fee Front End Load Back End Load Benchmark Par Value Minimum Investment *except public holiday

    PKR 10.00 PKR 5,000

    Fund Commentary & Performance


    During the month of February 2012, he benchmark KSE-100 index posted a sharp gain of 8.4% to close at 12,877 points. Trading activity also witnessed significant improvement of 148%. Average daily trading volumes recorded at 184.9 mn shares up from 74.5mnshares in January 2012. KSE-100 continued with the bullish trend of the last month which was mainly derived by the commitment of Finance Minister to accept all proposals of the KSE for relaxation in Capital Gains Tax. In addition to that, strong corporate earnings with handsome payouts also served to uphold the momentum in the market. In the monetary policy announcement on February 11, 2012, SBP kept the policy rate unchanged at 12%. SBP concluded in its MPS statement that despite moderate aggregate demand, pressure on liquidity is likely to continue due to uncertain foreign inflows and substantial government borrowings to finance the fiscal deficit. Moreover, inflationary pressures have not eased significantly. Against this backdrop, the Central Board of Directors of Fund's Year to Date Performance SBP considers the 200 bps reduction in the policy rate, already introduced in FY12, to be appropriate and has decided to keep the policy rate unchanged at 12 percent. During the month of February 2012, the benchmark KSE-100 index increased by 8.4% whereas your Funds NAV increased by 3.8%, thus, giving an underperformance of 4.6%. Similarly, on a YTD basis (July 11 to Feb 12), the KSE-100 index appreciated by 3.06% whereas the NAV of your Fund has yielded a return of 1.31%, showing an under performance of 1.75%.

    Fund's Year to Date Performance

    12,500

    10,500
    8,500

    6,500
    4,500
    15-Nov-11 11-Dec-11 1-Feb-12 29-Aug-11 24-Sep-11 27-Feb-12 8-Jul-11 20-Oct-11 3-Aug-11 6-Jan-12
    Equities 91.88%

    KSE-100

    Fund's Asset Allocation

    NAV OF NI(U)T

    Eebruary 12

    Equities 90.14%

    January12

    Others 0.58%

    T.Bills 0.00%

    Cash 9.29%

    Others 0.31%
    T.Bills 0.81% Cash 7.01%

    Outlook
    The revitalized foreign, and local investors interest may continue to lend strong support to the market. However, nascent risks to the economy in the form of deteriorating BoP position and higher expected inflation (rising energy prices and weakening off of last years base effect) are the possible hazards to the upside momentum of the current rally.

    Sector Allocation (As % of Total Assets)


    22% 18% 16% 8% 4%
    Net Assets NI(U)T Nav per Unit NI(U)T Rs. 38.299 billion Rs. 28.51

    OIL & GAS CHEMICALS BANKS PERSONAL GOODS FOOD PRODUCERS

    Technichal Information 29-02-2012

    22%

    OTHERS

    Top Ten Holdings (As % of Total Assets) (As % of Total Assets)


    Fauji Fertilizer Co. Ltd. Pakistan State Oil Bank Al-Habib Ltd. National Refinery Ltd. Habib Metropolitan Bank Attock Refinery Ltd. Pakistan Oilfields Ltd. Siemens Pakistan Bata Pakistan Ltd. Lucky Cement Ltd.
    Compliance with Circular # 16 of 2010 / Non-compliant Investments

    Risk & Return Ratios (3yrs to date)


    NIT Portfolio 13% Standard Deviation 9% Beta 7% Sharpe Ratio 4% 3% 3% 3% 2% 2% 2% FY 07 FY 08 FY 09 FY 10 FY 11 22% 0.57 -0.80 Historical Fund Perdformance NI(U)T 44.8% -6.4% -41.5% 17.9% 24.0% KSE 100 37.9% -10.8% -41.7% 35.7% 28.5% DPU (Rs.) 6.20 6.50 3.25 2.25 4.00 KSE-100 19% 1.00 0.78

    NI(U)T, our flagship fund, was launched in 1962 with an intention to provide investment opportunities to masses. Since its inception NI(U)T has a policy of making investments while remaining compliant with the requirements of its constitutive documents and all other relevant rules and regulations. However, with the promulgation of NBFC Regulations 2008 small portion (around 6% of net assets) does not meet the requirements of current regulations. However, efforts are being made to bring all such investments in compliance with NBFC Regulations 2008 while protecting the best interest of the unit holders

    Members of the Investment Committee


    Wazir Ali Khoja - Managing Director Shahid Anwer - Head of MD's Sectt. & Personnel Manzoor Ahmed - Chief operating Officer S. Zubair Ahmed - Controller of Branches Amir Amin - Head of Finance M. Imran Rafiq, CFA - Head of Research

    M. Atif Khan, Manager Compliance & Risk Management

    MUFAP's Recommended Format.

    Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All Investments in Mutual Funds are subject to Market Risks. The NAV based prices of units and any dividends / returns thereon are on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results.

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