⚡ Flash Summary

JS KPK Pension Fund’s annual report for the year ended June 30, 2025, presents a mixed picture. The Money Market Sub-Fund delivered a 15.79% return, with net assets totaling PKR 60.01 million. However, other sub-funds (Equity, Equity Index, and Debt) remain non-operational, each holding only seed capital of PKR 0.5 million. The report highlights improvements in macroeconomic stability and monetary policy easing, but also acknowledges sector-specific headwinds and global uncertainties.

📌 Key Takeaways

• 🎉 The Money Market Sub-Fund achieved a return of 15.79% for the year.
• 💰 Net assets of the Money Market Sub-Fund reached PKR 60.01 million as of June 30, 2025.
• 🌱 Equity, Equity Index, and Debt Sub-Funds remain non-operational with PKR 0.5 million seed capital each.
• 📉 Inflation eased to 4.49%, down from 23.41% a year earlier.
• 💹 Foreign exchange reserves reached USD 14.51 billion by year-end.
• ➕ The current account recorded a surplus of USD 2.1 billion.
• 🏦 The KSE-100 Index advanced 60.15% during the year.
• ⬇️ The State Bank of Pakistan (SBP) implemented cumulative rate cuts of 950 basis points.
• ⚠️ Foreign investors recorded net outflows of USD 303.8 million.
• ⭐ The Pension Fund Manager has a rating of ‘AM2++’ with a ‘Stable Outlook’ from PACRA.
• 🏛️ The FBR tax collections rose 26.13% to PKR 11.74 trillion, falling short of the target by PKR 165 billion.
• 🎯 The FY2026 Federal Budget targets real GDP growth of 4.2% and headline inflation of 7.5%.

🎯 Investment Thesis

Given the limited operational scope and concentrated performance in the Money Market Sub-Fund, a HOLD recommendation is appropriate for existing investors. Potential investors should await the operationalization of the Equity, Equity Index, and Debt Sub-Funds before making a decision. The Fund demonstrates a sound management structure and a commitment to delivering value, but it currently lacks diversification and operational scale. If and when these become active, the rating should be reconsidered. A price target cannot be established as the majority of the product is still in the ‘seed’ stages.