Malawi Stock Exchange (MSE)-listed collective investment scheme National Investment Trust (Nitl) plc has moved to de-risk to grow its business and invest in more companies outside the 16-counter stock market.

Nitl, whose objective is to provide both income and capital growth for investors, has largely invested in MSE-listed counters in banking, telecommunications, property, agriculture and other financial services.

Malawi Stock Exchange Building

Nitl board chairperson Esther Gondwe said during a stakeholders’ forum in Blantyre on Thursday that the company wants to strengthen its position by investing in other companies not listed on MSE to strengthen its existing portfolio.

She said: “We have invested mostly in listed companies, but we believe that un-listed companies are also areas we can tap into.

“Recently, we invested in Continental Holdings Limited and now the focus is to tap into other opportunities that may arise to expand our company.”

Speaking at the same event, Nico Asset Managers Limited chief executive officer Daniel Dunga, whose company are fund managers of Nitl, said the firm has a ‘vibrant’ investment strategy.

He said: “We intend to grow our profits to K100 billion in five years and this will be achieved through diversification of investment areas.

“We are currently looking into potential areas of investment outside the stock market such as the agricultural, microfinance and financial services sector.”

Minority Shareholders Association of Listed Companies general secretary Frank Harawa expressed hope that by investing in more companies, Nitl will provide more value to shareholders.

“We are proud to be part and associated with this company which has shown potential over the years,” he said.

Harawa suggested that apart from investing in other unlisted companies, Nitl should also make more shares for investment on the market so that many other Malawians can benefit.

Nitl has 135 million shares in issue and its share price traded at K330 as of close of on Friday.

In the period ended December 31 2022, the firm registered a K7 billion after tax profit, an increase from K4.7 billion recorded during the previous year.

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