Presentation on NIT Funds
At
Pakistan IPO Summit – 2014
Friday, January 31, 2014
By:
Mr. Manzoor Ahmed, MD – NIT
NITL Corporate Profile

First Asset Management Company (AMC) of Pakistan, formed in 1962.

The Shareholders of NITL include:
 Banks/DFIs
 Industrialists
 Government of Pakistan

Pakistan ahead of India and probably first in SAARC Countries to launch a
Mutual Fund.
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NITL Corporate Profile

Total AUMs of mutual fund industry are around Rs. 413 billion with 195 funds
(Open/Close/Pension).

Net Assets of NITL stand at around Rs. 86 billion across 5 funds.
 AUM’s constitute about 21% of the entire mutual fund industry.

The flagship NI(U)T Fund has grown to be the single largest Equity Fund of
the country.
 With size of around Rs. 54 billion invested in around 385 companies .

Around 54,000 unit holders, highest of the any AMC in the country.
* Source: MUFAP, NIT as of Dec. 31 2013; Industry figures includes NIT-SEF & NIT-EMOF
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NITL – Family of Funds

NI(U)T Fund

NIT State Enterprise Fund

NIT Equity Market Opportunity Fund

NIT Government Bond Fund

NIT Income Fund
EQUITY
FUNDS
INCOME
FUNDS
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Size of Funds Under Management of NITL
(as of Jan 28, 2014)
(Rs in million)
Fund Name
Fund Type
Net Assets
NI(U)T
Equity
58,503
NIT-SEF
Equity
17,046
NIT-EMOF
Equity
8,285
NIT-GBF
Income
4,345
NIT-IF
Income
3,381
Total
91,561
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NI(U)T Fund

Objective
The core objective of NI(U)T is to maximize return for Unit holders, provide a regular
stream of current income through dividends, while long term growth is achieved by the
management of diversified portfolio and investments into growth and high yielding equity
securities.
FUND TYPE
Open End
CATEGORY
Equity
LAUNCH DATE
12th November 1962
MANAGEMENT FEE
1.00%
FRONT END LOAD*
3.00%
BACK END LOAD
NIL
BENCHMARK
KSE-100 Index
PAR VALUE
PKR 10.00
CURRENT NAV**
PKR 54.15
MINIMUM INVESTMENT
PKR 5,000
TRUSTEE
National Bank of Pakistan
* Varies as per policy.
** NAV as of Jan 28, 2014
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NI(U)T Fund

Sector wise Allocation (as of January 28, 2014)
Oil & Gas
19.1%
Others
25.9%
Personal Goods
18.1%
Gen. Ind.
6.3%
Pharma
6.4%
Chemicals
9.9%
Banks
14.4%
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NI(U)T Fund

Top Ten Holdings (as of January 28, 2014)
No.
COMPANY NAME
% of PORTFOLIO
1.
PAKISTAN STATE OIL COMPANY LTD.
10.4%
2.
FAUJI FERTILIZER COMPANY LTD
6.0%
3.
BANK AL - HABIB LTD.
5.8%
4.
BATA PAKISTAN LTD
5.8%
5.
SONERI BANK LTD
2.8%
6.
HABIB METROPOLITAN BANK LTD
2.7%
7.
PACKAGES LTD
2.4%
8.
GLAXOSMITHKLINE (PAK) LTD
2.3%
9.
SIEMENS PAKISTAN ENGINEERING CO
2.3%
10.
SHEZAN INTERNATIONAL LTD
2.2%
TOTAL
42.7%
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Performance of NI(U)T
NI(U)T Return
Benchmark Return
Out/(Under)
Performance
FY13
58.42%
52.20%
6.22%
FY14 YTD*
40.07%
26.80%
13.27%
* Till 28th Jan. 2014
Top 10 Best Performing Equity Funds
(as of Jan 28, 2014)
No.
1.
2.
FUND’S NAME
National Investment Unit Trust
AKD Opportunity Fund
3.
JS Large Cap Fund
30.46%
4.
Safeway Mutual Fund
29.39%
5.
Crosby Dragon Fund
28.05%
6.
Asian Stocks Fund
26.39%
7.
JS Growth Fund
26.15%
8.
PICIC Stock Fund
25.38%
9.
Lakson Equity Fund
24.79%
10.
First Capital Mutual Fund
22.40%
Source: MUFAP
FY14 YTD Return
40.07%
34.43%
NIT – State Enterprise Fund

Objective
The objective of the NIT State Enterprise Fund is to take advantage of market
conditions and acquire a selection of eligible stocks thereby creating an opportunity
for investors to achieve superior returns.

Sector wise Allocation (as of January 28, 2014)
Banks, 16.5%
Gas Water & M.
Utilities, 12.4%
Electricity, 5.7%
Oil & Gas, 62.8%
Telecom, 2.7%
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NIT – State Enterprise Fund

Launched in January 2009 to help support the stock market.
 Mandate to invest in 8 state-owned/controlled enterprises.
 An amount of Rs. 17.2 billion was borrowed from various financial institutions.
 The loan was backed by a guarantee of the GoP.

Current Position (as of January 28, 2014)
 Total borrowings of Rs. 17.2 billion have been paid off.
 Total markup of around Rs 9 billion has been paid.
 Net assets after full and final payment stand at Rs. 17.05 billion.
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Performance of NIT-SEF
NIT-SEF Return
Benchmark Return
Out/(Under)
Performance
FY13
40.90%
52.20%
(11.3%)
FY14 YTD*
19.17%
26.80%
(7.63%)
Since Inception
354.79%
341.18%
13.61%
* Till Jan 28, 2014
NIT – Equity Market Opportunity Fund

Objective
The Objective of Equity Market Opportunity Fund is to invest the Funds in Equity
Market at a time when the Management Company of the Fund has reasons to
believe that there is an opportunity to invest the fund in a gainful manner and such
investment is in the benefit of the Fund taking a long term perspective.

Sector wise Allocation (as of January 28, 2014)
Personal Goods
7.0%
Others
6.8%
Oil & Gas
35.7%
Chemicals
14.1%
Construction
16.8%
Banks
19.6%
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NIT – Equity Market Opportunity Fund

Established in July 2008 to stabilize the stock market during distressed
conditions.
 An amount of Rs. 5.1 billion was invested by 4 institutional investors.

Current Position (as of January 28, 2014)
 Total units worth Rs. 3.72 billion have been redeemed to the investors till date.
 Current net assets stand at Rs 8.29 billion.
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Performance of NIT – EMOF
NIT-EMOF
Return
Benchmark Return
Out/(Under)
Performance
FY13
41.85%
52.20%
(10.35%)
FY14 YTD*
19.87%
26.80%
(6.93%)
Since Inception
151.34%
138.90%
12.44%
* Till Jan 28, 2014
NIT Government Bond Fund

Objective
The objective of NIT Government Bond Fund is to generate best possible return
with minimum risk, for its Unit Holders, by investing primarily in Government
Securities.

Asset Allocation (as of January 28, 2014)
Cash
0.6%
PIBs
7.7%
Othes
0.6%
Treasury Bills
91.1%
Performance of NIT GBF
NIT GBF Return
Benchmark Return
Out/(Under)
Performance
FY13
9.93%
8.80%
1.13%
FY14 YTD*
(annualized)
6.78%
8.53%
(1.75%)
Since Inception
(annualized)
11.55%
10.04%
1.51%
* Till Jan 28, 2014
NIT Income Fund

Objective
The objective of NIT Income Fund is to generate competitive stream of return with
moderate level of risk for its unit holders, by investing primarily in fixed income
securities/instruments.

Asset Allocation (as of January 28, 2014)
LOP
14.6%
Cash Others
0.6% 0.3%
TFCs
10.5%
PIBs
0.7%
Treasury Bills
73.2%
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Performance of NIT IF
NIT IF Return
Benchmark Return
Out/(Under)
Performance
FY13
9.56%
9.92%
(0.36%)
FY14 YTD*
(annualized)
6.86%
9.57%
(2.71%)
Since Inception
(annualized)
12.28%
11.59%
0.69%
* Till Jan 28, 2014
NIT’s Path To Success Over The 50 Years

Consistent payment of dividends to the unit holders even during the difficult
economic and stock market conditions.
 Not a single year of dividend payout has been missed throughout NIT’s entire history.

NIT’s Investment Philosophy:
 To have a selection of growth stocks having a regular stream of dividend payout and
a long term investment perspective.
 To never indulge in speculative trading.

NIT aims to always cater to the needs of the small investors.

A highly competent and committed management team comprising of qualified
and experienced professionals who undertake:
 Investment management decisions with a professional and ethical approach.
 Without any influence from any quarter.
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The Capital Market - NIT’s Contribution

Providing support to the capital market at the time of crisis.
 The GoP and other stakeholders have always entrusted NIT with a role to help
support the capital market.
 NIT-EMOF was launched in July 2008 to help support the stock market.
 NIT-SEF was launched in Jan 2009 at the time of unprecedented market crisis.

Providing liquidity and depth to the capital market.


NIT being the largest player, is actively involved in buying and selling of stocks.
Participation in new IPO’s and Book Building Transactions.

NIT encourages new companies to list by actively investing in IPO’s.
 NIT had an initial mandate to take up a percentage of every IPO/OFS to enhance the capital
market size.
 During last 5 years (2009 to 2013), 18 IPOs/Book Building took place in KSE.
 Of these, NIT participated in 10 IPOs/Book Building transactions.
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The Mutual Fund Industry - NIT’s Contribution



Aiming to create a sustainable growth in Pakistan’s mutual fund industry.

Presently, investments in mutual funds are quite low compared to other countries.

Expanding the retail base can provide sustainable growth to the industry.
Increasing savings culture and awareness.

Inculcating savings culture amongst the people will increase the retail base.

NIT plays an active role to increase awareness about mutual funds.
Enhancing the distribution network.


NIT’s countrywide distribution network comprises 23 branches, 1 Investor’s
Facilitation Center and number of authorized bank branches/distributors.
NIT has its role in providing human capital to the mutual fund industry.
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NIT’s CSR Initiatives

NIT has been playing its role and endeavors to take care of needy and less
fortunate people by contributing generously.

NIT introduced Hajj Scheme for its employees to perform the spiritual
obligation.
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