Author Topic: NIUT -- National Investment Unit Trust.  (Read 1932 times)

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Offline MZ

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NIUT -- National Investment Unit Trust.
« Reply #-1 on: February 16, 2014, 11:36:59 AM »
All About National Investment Unit Trust.

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NIUT -- National Investment Unit Trust.
« Reply #-1 on: February 16, 2014, 11:36:59 AM »

Offline MZ

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Re: NIUT -- National Investment Unit Trust.
« on: February 16, 2014, 11:37:35 AM »
NIUT remains on guard

National Investment Unit Trust (NIUT)--the mutual fund industry tycoon announced its 1H FY14 results yesterday, where a glimpse at the financial results portrays a turnaround story of its funds and the results of NIUT (equity fund) in particular surely deserves a pat on the back.

While the profitability of NIUT remained depressed in 1H FY13 owing to tough economic scenario and subdued investor participation, the latest financial performance is worth praising. The net profitability of the Fund punched the clock at Rs2.8 billion vis-à-vis a net loss of Rs0.96 billion in the same period of last year, which substantiates the view that the management has been successful in bringing Funds bottom line back to the green zone.

Thanks to the share of capital gain on sale of securities and re-measurement of investment that helped mitigate the impact of decline in income from government securities and profit on bank deposits. This is evident as the capital gain on sale of securities and unrealized amount on re-measurement of investments grew substantially by 62 percent and 200 percent, respectively. Moreover, a substantial improvement in losses on differentials in prices of units issued and redeemed had its utmost share in turning around the bottom line from losses to profits.

On the flipside, the downturn in the profitability of fixed income funds hasn    taken anyone by surprise where the discount rate trajectory largely spells out the reason behind this battering. To hark back, FY13 started on a high interest regime when the discount rate was at 12 percent, while the start of FY14 was prompted to cope with an environment of low interest rates as the discount rate stood at 9 percent in June 2013-a fall down in interest rates by nearly 300 bps from FY13. As a result, NIUT Income Fund and NIUT Government Bond Fund along with many other income funds became the victim of poor performance.

Coming to NIUT Income Fund, decline in income from TFCs and certificate of investments gobbled up whatever gain the Fund achieved from income from government securities and bank deposits. As a result of notable rise in operating expenses, operating profit declined slightly by 4 percent in 1H FY14. Also, the Fund booked provisioning expense on a non-performing TFC during the period which exerted additional pressure on NIUT Income Funds bottom line. Consequently the earnings per unit declined by 39 percent to clock in at Re0.40 in afore mentioned period.

And the same happened with NIUT Government Bond Fund, where the earnings per unit declined to Re0.34 (down by 41 percent year on year), owing to the mark-up on fixed income instruments which slumped sharply from Rs45 million to Rs9 million (down by 80 percent year on year).

Offline sAr

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Re: NIUT -- National Investment Unit Trust.
« Reply #1 on: February 16, 2014, 10:53:06 PM »
NI(U)T has a good portfolio. As of January'2014 its holding includes:

PSO 10%
BATA 6%
FFC 6%
BAHL 6%
HMB 3%
SNB 3%
PKGS 3%
GSK 2%
SIEM 2%
SHEZ 2%

All are value investments. They are holding BATA from 1200's level and further increased the holding. Fully bullish on it.

Offline MZ

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Re: NIUT -- National Investment Unit Trust.
« Reply #2 on: April 08, 2014, 08:54:21 PM »
NIUT catches up the lead once again!

The real spice of games lies in ups and downs, but the ultimate test resides in focusing on goals and not letting oneself suffer defeat owing to lack of efforts. Thats the conviction that the fund managers of NIUT seem to be chasing quite firmly.

To recall, National Investment Unit Trust (NIUT) has been consistently managing to lead the equity fund category since the beginning of FY14. However, in February 2014, things went a little differently as the lead was taken over by AKD Opportunity Fund (AKDOF), thus leaving NIUT on the second bench (See BR Research article: "Strategy canvas of top equity funds", published on March 5, 2014).

However, the defeat of NIUT was only short-lived as the fund has bounced back again after losing its lead as highlighted in the graph.

Speaking to BR Research about the performance of the fund, Manzoor Ahmed, NITs MD, reiterated that two crucial strategies have enabled the fund to catch up the lead once again. First, being the quality of portfolio holdings and a strong focus on fundamentally sound stocks. Second, being the long-term investment strategy as opposed to speculative trading that result in short-term gains.

However, one possible explanation of AKDOF emerging out as the leading fund in February 2014 appears to be its fund managers smart strategy of reducing equity exposure at a time when the market saw a downfall of 3.74 percent during the month. The statistics presented in the fund manager report of AKDOF portray that the equity exposure of the fund dipped to 92.3 percent in February 2014 from 96.81 percent in the preceding month. Hence, by scaling down the equity exposure when the market witnessed a downturn, AKDOF managed to take the lead for a short while.

Going onwards, equity market is expected to stay in good health. Economic rebound and increase in Pakistans weight in MSCI index suggests that fundamentally the fate of equity market is on the comforting side. Blooming equity market might lend a hand in flourishing the performance of equity funds. But, bear in mind that the fortune of equity funds depends much on the quality of underlying securities. Hence, for those looking to invest in equity minds, a quick analysis of the quality of portfolio holding will save ones neck.

Offline co2

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Re: NIUT -- National Investment Unit Trust.
« Reply #3 on: April 08, 2014, 11:14:10 PM »
too big fund     :dance :dance  stay away  :shoaby:
An investor without investment objectives is like a traveler without a destination.  ~Ralph Seger

Offline MZ

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