⚡ Flash Summary

JS Microfinance Sector Fund (JS MFSF) reported a fund return of 15.24% for the year ended June 30, 2025, exceeding the benchmark return of 14.70%. Net assets increased from PKR 10.30 billion to PKR 10.66 billion during the same period. The fund paid an interim cash dividend of Rs 8.92 per unit. The fund’s asset manager rating is ‘AM2++’ with a ‘Stable Outlook’ from PACRA, while the fund rating is “A(f)”.

📌 Key Takeaways

• 🎉 Fund return was 15.24%, outperforming the benchmark of 14.70%.
• 💰 Net Assets increased from PKR 10.30 billion to PKR 10.66 billion.
• 💸 Interim cash dividend of Rs 8.92 per unit was paid.
• ⭐ Asset manager rating is ‘AM2++’ with a ‘Stable Outlook’ from PACRA.
• 📈 Fund stability Rating of ‘A(f)’ reaffirmed by PACRA.
• 🧾 Total expense ratio is 1.46%, including 0.24% of government levies.
• ✔️ External auditors, Grant Thornton Anjum Rahman, were reappointed.
• 🏛️ Investments are primarily in the Microfinance sector.
• 🏦 Largest asset allocation is to bank placements (67.99%).
• ⬇️ TFCs/Sukkuks constitute only 2.32% of asset allocation.
• 📌 Net asset value per unit stood at Rs 108.16.
• 🌍 Global uncertainty and geopolitical tensions impacted the broader economic environment.
• 📉 SBP implemented cumulative rate cuts of 950 bps, bringing the policy rate down to 11%.

🎯 Investment Thesis

HOLD. The fund has demonstrated good performance relative to its benchmark, but a hold recommendation is appropriate due to risks in the microfinance sector. Further analysis of credit quality and the evolving regulatory landscape is needed before considering a buy recommendation.