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NAMAL
says well placed to benefit from rising interest rates "Long term investors in NIF received 12.75 percent annualized return with their dividend reinvestment," a NAMAL statement said. As an income fund invests only in fixed income securities the return generated by the fund shown in this period is in line with interest rates prevailed in the short term securities and money market. The yield on 12 months treasury bill improved from 7.24% in December 2003 to 7.75% in June 2004. Currently, in an increasing interest rate environment, NIF is well positioned to improve the yield to investors with higher level of liquidity. NIF had a liquidity of 90 percent in overnight repos and is positioned well to take advantage of a rising interest rate environment. This dividend of Rs 0.35 per unit is lower compared to the dividend of Rs 0.54 per unit paid in the same period last year. "We believe the investors received a return better than that of similar forms of products in the market," said S. Jeyavarman, CEO of NAMAL. NAMAL continuously monitors macro economic developments in the country and resulting changes in the financial market to take best possible advantage for the investors in the fund, he added. The dividend paid by NAMAL Income Fund is tax free in the hands of investors both corporate and individuals. NAMAL Income Fund was launched in 1998 to create an investment option for investors to diversify into fixed income securities comprising of government and corporate instruments, and to receive a market driven half yearly return. Accordingly, NIF has been distributing income in the form of dividends every six months in January and July. Investors have the choice to receive cash dividends or reinvest them in the same fund or other funds managed by NAMAL. NAMAL manages the National Equity Fund, NAMAL Growth Fund and NAMAL Income Fund to provide a choice of investment and saving opportunities to investors. |
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