⚡ Flash Summary

JS Islamic Income Fund (JSIIF) reported a fund return of 12.75% for the year ended June 30, 2025, surpassing its benchmark return of 10.90%. The fund’s net assets have significantly increased from PKR 0.897 billion to PKR 1.632 billion, demonstrating strong growth. The total expense ratio is 1.59%, which included 0.20% of government levies. The fund paid an interim cash dividend of Rs 13.37 per unit for the year ended June 30, 2025, indicating robust profitability and commitment to return value to unit holders.

📌 Key Takeaways

• 📈 JSIIF’s fund return was 12.75% versus a benchmark of 10.90%.
• 💰 Net assets surged from PKR 0.897 billion to PKR 1.632 billion.
• 💸 An interim cash dividend of Rs 13.37 per unit was declared.
• ✅ Total expense ratio is a reasonable 1.59%, including 0.20% in government levies.
• ⭐ Asset manager rating is ‘AM2++’ with a ‘Stable Outlook’ from PACRA.
• 👍 PACRA reaffirmed a Stability rating of ‘AA-(f)’ with a ‘stable outlook’.
• 🏛️ A.F. Ferguson & Co. Chartered Accountants, were reappointed as auditors.
• 🤝 Al-Hilal Shariah Advisors continue as Shariah Advisors.
• 🌱 FY2026 Federal Budget forecasts GDP growth of 4.2% and inflation of 7.5%.
• 📉 State Bank of Pakistan (SBP) cut rates by 950 bps to 11% to support growth.
• 🇵🇰 Pakistan’s first 15-year zero-coupon bond was issued, raising PKR 288 billion at a 12.70% cut-off.
• 📊 Net Asset Value (NAV) per unit increased to PKR 106.54 as of June 30, 2025.
• 💼 JS Islamic Income Fund invests in a wide range of Shariah-compliant instruments.

🎯 Investment Thesis

BUY. JS Islamic Income Fund presents a compelling investment opportunity due to its strong performance, significant growth in net assets, and commitment to Shariah-compliant investments. The fund’s ability to outperform its benchmark, along with a stable outlook and reasonable expense ratio, indicates sound management and potential for continued growth. Considering its exposure to a diversified portfolio of Shariah-compliant instruments and the potential for further monetary easing, a price target of PKR 120.00 is set, reflecting a 12.63% upside, with a medium-term investment horizon of 18-24 months.