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UTP earns Rs 41.703m gross income

RECORDER REPORT

KARACHI: The Unit Trust of Pakistan (UTP) has earned a gross income amounting to Rs 41.703 million where as its net asset value improved by 12.2 percent in the six months ended December 31, 1999.

ABAMCO Limited, the management of UTP and Investment Adviser of BSJS Balanced Fund Limited, has announced the half yearly results for its two funds. ABAMCO is the first asset management company to have announced the interim results of the funds under its management.

UTP has earned a gross income of Rs 41.703 million and a net income of Rs 34.630 million. The net income per unit works out to Rs 536 as against Rs 354 during the corresponding period last year. This reflects an improvement of 52 percent over the same period last year. The net asset value (NAV) of UTP units improved from Rs 5,050 on June 30, 1999 to Rs 5,666 on December 31, 1999 reflecting an improvement of 12.2 percent i.e. 24.4 percent on annual basis.

The company issued 64,557 units as on December 31, 1999, with a value of Rs 365.799 million.

Y2K has started with a very positive note for UTP. The UTP has had an outstanding performance in the first three weeks of January 2000. The NAV surged from Rs 5,666 on December 31, 1999 to Rs 6,278 on Jan. 21, 2000, which reflects an appreciation of Rs 612 or 10.8 percent over three weeks period.

The UTP has been showing a steady and consistent performance since its public offering. An investor, who had purchased the units on the day of the public offering i.e. October 27, 1997 and is still holding his investment has earned a return of 22 percent on annual basis.

This return compares very favourably with returns available from any national saving scheme and shows its consistency.

The UTP has been assigned AA(f) (double A) mutual fund rating by Pakistan Credit Rating Agency.

BSJS Balanced Fund Limited has been established under investment companies and investment advisers rules 1971. The fund has earned an income of Rs 1.36 per share, which depicts an improvement of 119 percent over the same period last year. The NAV has improved by 17 percent during the period under review i.e. 34 percent on an annual basis. The NAV of the fund further improved by 19 percent during January 2000, making a total improvement of 36 percent since July 1999, i.e. 64 percent on annual basis.

The appreciation in the portfolio was recorded at 19 million on December 31, 1999, which has increased to 49 million on January 21, 2000, showing net increase of 30 million in a span of 21 days.