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    12FMR - December 2010

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    Rashid Ahmadani
    The fund manager report provides an overview of the NIT Government Bond Fund's performance in December 2010. The fund yielded an annualized return of 11.02% for the month, and 10.61% year-to-date. The fund reinvested liquidity in shorter term treasury bills, increasing government security holdings from 86% to 97% of total assets. Going forward, the fund manager intends to remain cautious and invest in shorter term treasury bills due to expectations that interest rates may rise with inflationary pressures and government borrowing.

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    12FMR - December 2010

    Uploaded by

    Rashid Ahmadani
    8 views1 page
    The fund manager report provides an overview of the NIT Government Bond Fund's performance in December 2010. The fund yielded an annualized return of 11.02% for the month, and 10.61% year-to-date. The fund reinvested liquidity in shorter term treasury bills, increasing government security holdings from 86% to 97% of total assets. Going forward, the fund manager intends to remain cautious and invest in shorter term treasury bills due to expectations that interest rates may rise with inflationary pressures and government borrowing.

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    12FMR- December 2010

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    The fund manager report provides an overview of the NIT Government Bond Fund's performance in December 2010. The fund yielded an annualized return of 11.02% for the month, and 10.61% year-to-date. The fund reinvested liquidity in shorter term treasury bills, increasing government security holdings from 86% to 97% of total assets. Going forward, the fund manager intends to remain cautious and invest in shorter term treasury bills due to expectations that interest rates may rise with inflationary pressures and government borrowing.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    8 views1 page

    12FMR - December 2010

    Uploaded by

    Rashid Ahmadani
    The fund manager report provides an overview of the NIT Government Bond Fund's performance in December 2010. The fund yielded an annualized return of 11.02% for the month, and 10.61% year-to-date. The fund reinvested liquidity in shorter term treasury bills, increasing government security holdings from 86% to 97% of total assets. Going forward, the fund manager intends to remain cautious and invest in shorter term treasury bills due to expectations that interest rates may rise with inflationary pressures and government borrowing.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    NIT- GOVERNMENT BOND FUND

    FUND MANAGER REPORT - DECEMBER 2010


    Fund's Basic Informations Objective of the fund
    Fund Type Open-End The objective of NIT Government Bond Fund is to generate best possible return with minimum
    risk, for its Unit Holders, by investing primarily in the Government Securities.
    Category Income Fund

    Launch Date 18th November,2009 Profile of Investment Managers


    Listing KSE, LSE & ISE 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. 80 billion assets under
    Stability Rating Not Rated management. In order to cater to varied needs of investors, NITL for the very first time in the 48 years history
    of the company, ventured in to fixed income category by launching two Funds in the FY10. NIT Government
    Management Fee 1.25% Bond Fund, a very low risk product was launched in Nov. 2009 followed by NIT Income Fund which was
    introduced in Feb. 2010. With the launching of these two funds the family of Funds of NIT has increased to six
    Front End Load 1.00%
    funds including 4 equity Funds and 2 fixed income Funds. NIT's distribution network comprises of 19 NIT
    Back End Load Nil 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
    Cutt-off timing 3.30 PM institutions, prominent industrialists and nominee of Govt. of Pakistan. During the year rating of NITL has
    also been improved by one notch to “AM2” by Pakistan Credit Rating Agency (PACRA), which denotes very
    Par Value PKR 10.00 strong capacity to manage risks inherent in asset management and the asset manager meets very high
    Growth Unit PKR 5,000 investment management industry standards and benchmarks. All Investment decisions are taken by the
    Min Subscription Investment Committee of NITL.
    Income Unit PKR 100,000
    Trustee Central Depositary Co. (CDC) Fund Performance Review
    Auditors A.F Ferguson & Co. Headline Consumer Price Index (CPI) YOY, with a modest increase, reached 15.48% in November
    2010, whereas average inflation for July – November 2010 registered a YoY increase of 14.44%. Current
    Registrar National Investment Trust Ltd. account posted a surplus of USD54mln during November 2010 while during first five month of FY11
    CAD shrunk by 72% to USD504mln from USD1,822mln in same period last year.
    Pricing Mechanism Forword Pricing
    Daily (Monday to Saterday) except On money markets front, SBP conducted three T-Bill auctions during the December 2010. Cut off rates
    Valuation Days
    public holiday were increased as it was expected after the hike in Policy Rate. The cut-off yields at the end of the month
    Daily (Monday to Saterday) except stood at 13.2542%, 13.4613% and 13.7775% for the 3, 6 and 12 months respectively. SBP also conducted a
    Redemption Days
    public holiday PIB auction during the month in which healthy participation of PKR32bln were witnessed. SBP accepted
    Subscription Days Each valuation day the target amount of PKR20bln in only 3, 5 & 10 year tenors at the cut-off yield of 14.24%, 14.29% and
    14.35% respectively.
    AMC Rating AM2 (PACRA)
    NIT Government Bond Fund (NIT GBF) yielded an annualized return of 11.02% for the month of
    Risk Profile Low December 2010. Whereas, the Fund’s annualized year to date return stood at 10.61%. The fund reinvested
    its liquidity in shorter tenor Treasury Bills which enhanced the investments in Govt. Securities from 86%
    Fund Manager Khurram Aftab Ahmed
    to 97% of total assets, while the remaining portion of the fund remained as cash with banks and others.

    Benchmark In the coming months the strategy will be to remain cautious by investing in shorter tenor Treasury Bills
    Average of weighted average yield of
    owing to expectation that interest rates may likely to rise due to the inflationary pressure and persistent
    6 month T-Bill auctions held during Government borrowing.
    70%
    the period
    1 month average deposit rate of A
    rating and above schedule banks 30% Asset Allocation as of Nov 2010 Asset Allocation as of Dec 2010
    Cash Cash
    Technichal Information 13.02% 1.99%
    Others
    Net Assets PKR 2.8 Bln 0.99% Others
    1.52%
    Nav per Unit (30th Nov 2010) 10.5196

    Weighted Average Maturity 223

    Leveraging Nil Govt. Sec Govt. Sec


    85.99% 96.49%
    Standard Deviation 0.02

    Fund's Return v/s Benchmark NIT-GBF Since Inception Return v/s Benchmark
    NIT-GBF Benchmark
    21%
    NIT GBF Return Benchmark Return
    November-10 11.22% 11.22% 19%
    17%
    December-10 11.02% 11.38%
    15%
    Year to Date 10.61% 10.99% 13%
    11%
    Since Inception 10.70% 10.68% 9%
    12 M Trailing 10.56% 10.69% 7%

    Disclaimer: All Investments in Mutual Funds and Securities are subject to Market Risks. Our target return/dividend range can not
    Members of the Investment Committee
    Wazir Ali Khoja - Managing Director Manzoor Ahmed - Chief Operating Officer Amir Amin - Head of Finance

    Shahid Anwer - Head of MD's Sectt. & Personnel Zubair Ahmed - Controller of Branches/Comp. Secretary Khurram Aftab - Fund Manager
    MUFAP's Recommended Format.
    Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a National Investment Trust Ltd,
    solicitation, recommendation or an offer to buy or sell any fund. All Investments in Mutual Funds and Securities are subject National Bank Building, (6th Floor)
    to Market Risks. Our target return/dividend range can not be guaranteed. NIT-GBFs unit price is neither guaranteed nor
    administered/managed. It is based on Net Asset Value (NAV) and the NAV of NIT-GBF Units may go up or down I.I. Chundrigar Road, P.O Box # 5671.
    depending upon the factors and forces affecting the Market. Past performance is not indicative of future results. Karachi - 74000, Pakistan
    Tel: 111-648-648

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