Citizen Investment Trust
Citizen Investment Trust (CIT) / Nagarik Lagani Kosh is the mutual fund that issues citizen unit fund scheme and other form of offers to the investors. It is a trust company registered under Citizen Investment Trust Act 2047 who manages the unit scheme. CIT started managing unit scheme by floating Citizen Unit 52 in the year 2052. CIT put Rs. 5 million as seed capital in the beginning. The total investment was only Rs. 65 million at the end of 2052/53 which has increased to Rs. 4,027 million by the end of 2059/60. Total financial asset of CIT has continued to increase in last several years due to considerable success of unit schemes and investment.
Total assets/liabilities increased by 24.3 percent recording investments of Rs. 8.42 billion and deposit of Rs. 7.71 billion. Liquid assets increased by 24.9 percent reaching Rs. 133 billion. During the same period, loans and credit increased by 34.9% showing Rs. 990 million.
When was Citizen Investment Trust Established
Citizen Investment Trust (CIT) was established on 18th March, 1991(4th Chaitra, 2047B.S) as an autonomous body. Formally it has been operating its activities since 15th January, 1992 (1st Magh, 2048).
Citizen Investment Trust Share Price
Main Features of Citizen Investment Trust nepal
The main features of Citizen Unit 52 are as follows.
- It is an open-ended scheme. The units can be purchased from and sold to CIT at any time. Therefore, the number of units outstanding varies from time to time.
- This scheme has also guaranteed a minimum return to its investors.
- It is described as a regular income plus growth oriented scheme .
- It can be purchased by an individual as well as an organization.
- CIT has taken the responsibility of operation and management of the scheme. It has constituted a trustee committee and investment committee for the effective management of the scheme. The management fee is limited to 1.5 percent or u total fund and 15 percent of the total income.
- CIT invests the fund in government securities, fixed deposit accounts commercial banks, shares and debentures of corporate organizations, term and bridge financing.
- It manages a variety of retirement programs and unit schemes as well as various mutual fund programs for domestic and foreign investors in order to encourage saving and increase investment opportunities and contribute to economic development of the country.
Milestones of CIT
With the growth of Nepal’s dynamic capital market, CIT has successfully completed two challenging decades. The company is currently launching various types of voluntary retirement plans (pension funds, gratuity funds, etc.) and insurance programs with individual accounts that are fully funded. CIT encourages long-term saving by operating Employee Savings Growth Retirement Fund (ESGRF), and insurance funds for civil servants, teachers, Nepal army, police, and Armed Police Forces employees to increase depositors’ savings and identify investment opportunities.CIT has its head office in Newbaneshor, Kathmandu, and branch offices in Pokhara and Biratnagar.
Major Functions of Citizen Investment Trust
A) Saving Mobilization
a) Operate different kinds of retirement schemes:
i) Gratuity funds.
ii) Nepal Government Employee’s Insurance funds.
iii) Teacher’s Insurance funds.
iv) Employees Saving Growth Retirement funds.
v) Pension Funds
b) Operation various unit and mutual fund schemes to both domestic and foreign investors
c) Operate Investor’s Account scheme.
B) Investment / Financing
a) Invest in corporate shares, debentures and government securities.
b) Provide term loan and bridge finances to corporate bodies.
c) Provide credit for purchasing shares
C) Capital Market services
a) Trustee Services
i) Debenture Trustee services
ii) Escrow Agent services
iii) Custodian services
iv) Other Trustee services
b) Corporate Finance Services:
i) Public issue management
ii) Underwriting and syndication of underwriting public issue
iii) Market making of corporate and government securities.
iv) Consultancy services
Working Policies of Nagarik Lagani Kosh
- To attract Nepali citizens residing in the country and abroad towards the programs offered by the Citizens Investment Trust.
- Investment trust services to be carried out on the basis of management fee concept.
- The Objectives of equity investment in Investment activities would not merely be on the spirit of management control of the institution.
- Investment of the funds would be chhanalised in the relevant sectors considering the nature and degree of risk pertaining to those particular funds. Priority will be given to the investor’s performance in various schemes concerning the risk, return and their desires while making investment decisions.
- To play the role of market maker to balance the transaction of securities and to purchase and sell share in bulk.
- A balance approaches would be applied in the operation to meet the interest of government, shareholders and participants.
- The selection of project and business activities will be done only on the basis of business principle and ethics.
Share Ownership Structure of Nagarik Lagani Kosh
|Nepal Rastra Bank||13.34%|
|Nepal Stock Exchange||10%|
|Rastriya Beema Sansthan||31.55%|
|Bank and Financial Institutions||15.11%|
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