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NITL was incorporated as an unquoted public limited company in 1962. The principal activity of the company is to manage NI(U)T, an open end mutual fund. The fund is the largest open-end mutual fund in Pakistan, with investments in approximately 600 of the 706 listed Pakistani Companies. NIT’s portfolio has over 90 percent correlation with the Karachi Stock Exchange all Share Index and is as such the nearest proxy to an Index fund in Pakistan. NI(U)T is valued at approximately Rs. 26 billion. The fund has a 93% weighting in equities and 7% weighting in fixed income securities. NITL’s objective is to provide its Unit-holders with a balance between their regular income needs and long-term capital appreciation. NITL has approximately 62,000 unit holders and over 19 branches and 2 booths across Pakistan. NI(U)T’s unique attraction is that it provides investors with a one window entry to Pakistan’s equity markets which at times can be illiquid and volatile. Pakistan, like most developing markets, has only a handful of stocks with the market capitalization and liquidity which makes them feasible additions to an international investment portfolio. However, these stocks are not representative of the economy as a whole and ignore the usual engine of growth for developing economies- the middle to small sized companies which can grow at multiples of, rather than percentage points over, last year’s performance. Identifying these companies is hard enough, but even if one could identify them, trading in their shares is likely to be so illiquid as to make adding them to your portfolio a considerable challenge.

 

Address: Abdul Hafiz Mirza Director General Privatisation Commission 5-A Constitution Avenue Islamabad, Pakistan.
Telephone: (92-51) 9203881
Fax: (92-51) 9203076
Website: http://www.privatisation.gov.pk/Finance/nit.htm