KARACHI - Despite economic slowdown and financial circumstances which Pakistan confronted during the last three quarters, NIT has earned a net profit of Rs2.550 billion; Rs 1,151 million and Rs 1,399 million in respect of LOC-Fund and Non-LOC Fund respectively. This was stated by Tariq Iqbal Khan Chairman and MD - NIT in a Press statement issued on Wednesday after the BoD of National Investment Trust Ltd approved the accounts of both LOC and Non-LOC Funds for the 9 months ended on 31.03.2009. Referring to the three quarter results the Chairman stated that NIT - Non-LOC Fund has earned a dividend income of Rs. 1,410 million during nine months ended on 31st March 2009 whereas dividend income earned by NIT - LOC Fund stood at Rs1,120 million. During the period, stock markets of Pakistan experienced a very difficult phase of highest proportion with historically low volumes. NIT has realised a capital gain of Rs 37 million and Rs 36 million relating to LOC Fund and Non-LOC Fund respectively. During this period NIT followed its policy of not selling in the falling market which supported the market at the time of distress and helped recover the market. Net profits earned by the Funds translate into earning per unit of Rs 1.42 for Non-LOC Fund and Rs 1.22 for LOC Fund. However, these figures of net profit are without impairment loss of Rs 12,446 million and Rs 15,395 million on account of AFS (Available for sale) Securities relating to LOC-Fund and Non-LOC Fund respectively which NIT has fully accounted for in nine months accounts ended on 31st March 2009. It may be worth mentioning that SECP had provided option for charging of impairment loss on AFS Portfolio as on 31.12.08 to Profit and Loss Account in four quarters up to 31.12.09 but NIT opted to take full impact of impairment loss as on 31.12.08 to Profit and Loss Account in its accounts for the quarter ended 31st March 2009. This treatment is in line with the International Accounting Standard 39 (IAS39) and NIT has taken this decision after testing the impairment. Loss so shown due to regulatory requirement does not in anyway hamper the total return to the unit holders as NAV has already been adjusted after accounting for this loss. During the nine months of FY09, performance of Non LOC Fund of NIT was almost at par when compared to its benchmark of KSE-100 Index where Net Asset Value of its units declined by 44.8% from Rs 46.38 as on June 30, 2008 (Ex-Dividend) to Rs 25.58 as on 31.03.09 against the decline of 44.2% in KSE-100 index during the same period. The Net Asset Value of Units of LOC Fund declined by 48.6% from Rs 45.73 as on June 30, 2008 (Ex-Dividend) to Rs 23.52 as on 31.03.09. It may be necessary to mention here that if unrealised impairment loss in available for sale and HFT (Held for trade) securities is accounted for then it would turn into a per unit loss of Rs 13.09 for LOC Holders Fund and Rs 16.61 for Non-LOC Holders Funds for the period ended on 31.03.2009. The Chairman also informed that despite all the difficulties faced by the mutual funds gross sale of NIT units (including CIPs) for Non-LOC Fund was recorded at Rs 5,487 million. During the same period under review, units worth Rs 903 million were redeemed out of Non-LOC Fund. Net sale (including CIPs) stood at Rs 4,584 billion which shows the growing confidence of investors in NIT. The Chairman stated further that during this period NIT has also launched two new Funds namely NIT - Equity Market Opportunity Fund and NIT - State Enterprise Fund which are fully operational and have also played important roles in recovery of stock market. While giving the details about the new funds, he informed that NIT - Equity Market Opportunity Fund was launched at the time of initial distress in the stock market but prior to floor mechanism. Whereas, NIT State Enterprise Fund was launched on January 13, 2009 whereby NIT started investing in the 8 eligible state enterprises and the cash so injected played a vital role in stabilisation of the stock market.