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NIT to float two funds in six months

RECORDER REPORT

KARACHI: The National Investment Trust (NIT) will float two funds within next six months with a total outlay of Rs 250 to Rs 500 million, NIT Chairman and Managing Director of Istaqbal Mehdi said on Thursday.

Speaking at a meeting of the Karachi Chamber of Commerce and Industry (KCCI), he said the government had in principle cleared the scheme and work on the scheme was almost in final stages likely and to be launched in three to six months.

He said schemes included NIT privatisation fund and NIT fixed income fund. Privatisation fund would buy shares of units to be privatised through stock market in the future.

NIT fixed income fund would cater for those investors, who are conservative and are looking for stability of principal along with a regular income scheme.

He said the management had taken initiative to introduce major structural changes.

He said the trust had made Rs 300 million in capital gain by selling some of the shares in its portfolio at price higher than the prevailing market value in the first half of this year.

He said as much as 98 percent of the NIT funds were invested in equities with just two percent remaining in loans. The major exposure (45 percent) was stated to be in fuel and energy sector and 13 percent in chemical and pharma sector.

Welcoming the guests, Amjad Rafi, President KCCI, said that the country's economy was undergoing a radical transformation and the government had announced a series of packages for the speedy economic revival. The financial sector is also being restructured and revamped, he said.