⚡ Flash Summary

JS Islamic Fund (JSISF) reported a strong performance for the year ended June 30, 2025, with a fund return of 54.07% compared to the benchmark return of 46.25%. Net assets increased significantly from PKR 284.58 million to PKR 433.83 million. The fund maintains a focus on growth-oriented sectors and capitalizing on undervalued stocks. The Management Company has an asset manager rating of ‘AM2++’ with a ‘Stable Outlook’, reflecting strong management quality and consistent operational performance.

📌 Key Takeaways

• 📈 Fund return was 54.07%, exceeding the benchmark return of 46.25%.
• 💰 Net Assets surged from PKR 284.58 million to PKR 433.83 million.
• ⭐ Expense ratio is 5.15%, including 0.65% government levies.
• 💸 Interim cash dividend of Rs 1.00 per unit was paid.
• ✅ Asset manager rating is ‘AM2++’ with a ‘Stable Outlook’ from PACRA.
• 🏦 Foreign investors showed net outflows of USD 303.8 million.
• 🤝 Mutual Funds were major net buyers at USD 230.5 million.
• 📊 KSE-100 Index advanced by 60.15%.
• 💲 Average daily volumes on KSE-All Share Index rose 37%.
• 💹 Current account recorded a surplus of USD 2.1 billion.
• 🏦 Foreign exchange reserves reached USD 14.51 billion.
• 🎯 FY2026 Federal Budget targets real GDP growth of 4.2%.
• 🎯 FY2026 Federal Budget targets headline inflation of 7.5%.
• 🔬 External auditors changed to Messrs Yousuf Adil, Chartered Accountants.
• 📜 Shariah advisors changed to Al-Hilal Shariah Advisors.

🎯 Investment Thesis

The fund presents a BUY opportunity. Rationale: Excellent fund performance significantly outperforming its benchmark, strong growth in net assets, well managed expenses, and positive management quality. Target price based on the current growth trajectory and assuming a steady market return, a price target of PKR 275 per unit within the next 12 months is reasonable.