⚡ Flash Summary

JS Income Fund reported a fund return of 14.69% for the year ended June 30, 2025, slightly trailing its benchmark of 14.70%. The fund’s net assets decreased from PKR 8,520.97 million in 2024 to PKR 7,568.49 million in 2025. The fund operates a diverse portfolio, including investment-grade debt securities, government securities, and money market instruments to maintain liquidity. The fund also paid an interim cash dividend of Rs 1.00 per unit during the year, with asset allocation strategically aligned with anticipated monetary easing.

📌 Key Takeaways

• ✔️ Fund return was 14.69% for FY25, just shy of the 14.70% benchmark.
• 📉 Net assets decreased to PKR 7,568.49 million from PKR 8,520.97 million year-over-year.
• 💼 The fund maintains a diversified portfolio including debt and government securities.
• 💰 An interim cash dividend of Rs 1.00 per unit was paid.
• 🏦 Banks balances decreased from PKR 2,487.77 million to PKR 2,207.88 million.
• 📈 Investments decreased from PKR 5,832.86 million to PKR 5,358.93 million.
• 🧾 Mark-up/profit receivable decreased from PKR 267.69 million to PKR 101.97 million.
• 📊 Government securities decreased from PKR 1,287.25 million to PKR 908.57 million.
• 🔒 Investment strategy focused on improving macroeconomic conditions and declining interest rates.
• 📉 Government Securities-Pakistan decreased from PKR 3,635.57 million to PKR 4,022.96 million
• 👍 PACRA reaffirmed ‘A+(f)’ stability rating of the Fund.

🎯 Investment Thesis

Given the slight underperformance relative to the benchmark and decreased total assets, a HOLD recommendation is appropriate for JS Income Fund. While the fund maintains a diversified portfolio and paid an interim dividend, external financial headwinds are having an impact on asset size. The fund’s asset allocation strategy, designed for improving macroeconomic conditions and potentially declining interest rates, positions it cautiously for potential future gains. Price target: PKR 120, Time Horizon: Medium Term.