JSIL-FUNDS

⚡ 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.

⚡ Flash Summary

JS Growth Fund reported a fund return of 53.24% for the year ended June 30, 2025, falling short of the benchmark return of 58.92%. The fund’s net assets increased significantly from PKR 2.50 billion in 2024 to PKR 3.52 billion in 2025. The total expense ratio of the fund is 4.99%, including 0.56% of government levies. The fund paid an interim cash dividend of Rs 1.00 per unit during the year.

📌 Key Takeaways

• 📈 Fund return: 53.24% (vs benchmark 58.92%)
• 💰 Net Assets Growth: PKR 2.50B (2024) to PKR 3.52B (2025)
• 💸 Total Expense Ratio: 4.99% (includes 0.56% govt. levies)
• 💰 Interim Dividend: Rs 1.00/unit
• ⭐ Asset Manager Rating: AM2++ (Stable Outlook) by PACRA
• 🔍 Auditor Change: Grant Thornton Anjum Rahman appointed for 2026
• 🌏 Pakistan’s GDP growth: 2.7% in FY25
• 📊 KSE-100 Index gain: 60.15%
• 📊 KSE-30 Total Return gain: 64.20%
• 📉 Foreign Investor Outflow: USD 303.8M
• ⬆️ Mutual Fund Inflow: USD 230.5M
• 💼 Equity allocation: 93.06% (2025)
• 📊 Information Ratio: (0.09)
• 📊 Correlation: 0.93

🎯 Investment Thesis

HOLD rating on JS Growth Fund. While net asset growth is positive, it falls short of its benchmark, and fees are rather high. I expect the portfolio to continue aligning better with Pakistan’s economic growth, and believe this can still be used for local market investment, although active management is required, based on risks. The price target will be updated if fund expenses come down and performance is improved, to warrant a stronger rating and potential increase.

⚡ Flash Summary

JS Fixed Term Munafa Fund II reported its annual results for the year ended June 30, 2025. The fund’s performance varies between its Plan 1 and Plan 2 offerings, with Plan 2 generally showing higher returns. The asset manager, JS Investments, holds a rating of ‘AM2++’ with a ‘Stable Outlook’, reflecting strong management and governance. The Directors expressed gratitude to regulatory bodies and stakeholders for their support. The report includes detailed financial statements and auditor’s reports, offering transparency into the fund’s operations.

📌 Key Takeaways

• 🎉 JS Investments celebrates 30 years of trust, innovation, and excellence.
• 📈 The fund reports its annual performance for the period ending June 30, 2025.
• 🏛️ The fund’s asset manager rating is ‘AM2++’, indicating strong management quality.
• 📊 The Directors’ Report highlights macroeconomic stability and sector-specific challenges.
• 📉 Inflation eased significantly to 4.49% from 23.41% year earlier.
• 💹 Foreign exchange reserves reached USD 14.51 billion by year-end.
• 💰 The FBR tax collections rose 26.13% year-on-year to PKR 11.74 trillion.
• ✂️ The State Bank of Pakistan (SBP) implemented cumulative rate cuts of 950 bps, bringing the policy rate down to 11%.
• ✔️ Allocation of schemes: JS Fixed Term Munafa Fund II – JS Fixed Term Munafa Fund II – Plan 1 has Net Assets of PKR 1.05 billion and Return of 10.63%.
• ✔️ Allocation of schemes: JS Fixed Term Munafa Fund II – JS Fixed Term Munafa Fund II – Plan 2 has Net Assets of PKR 2.22 billion and Return of 15.48%.
• ✔️ Plan 1 Benchmark Return was 11.28% and Plan 2 Benchmark Return was 11.30%.
• 🏦 JS Fixed Term Munafa Fund II mainly invests in government securities.
• 💸 Total return of the Fund is 10.63% for Plan 1 and 15.48% for Plan 2.
• ✨ The net asset value per unit is Rs. 101.60 for Plan 1 and Rs. 102.33 for Plan 2.

🎯 Investment Thesis

Based on the provided information, a HOLD recommendation is appropriate for JS Fixed Term Munafa Fund II. The fund’s returns are reasonable given the current macroeconomic conditions in Pakistan. However, the slightly underperforming return relative to its benchmark in Plan 1 and the presence of several risks indicate that investors should maintain their current positions but not increase them.

⚡ Flash Summary

JS Investments Limited presents the unaudited Financial Statements of JS Fixed Term Munafa Fund for the year ended June 30, 2025. The fund primarily invests in government securities across various plans, aiming for higher yields by focusing on floating and fixed-rate PIBs. Monetary policy witnessed recalibration with the State Bank of Pakistan (SBP) implementing cumulative rate cuts of 950 basis points, bringing the policy rate down to 11%. The Board also thanks the employees of the Management Company for their dedication and hard work and the unit holders for their confidence in the Management.

📌 Key Takeaways

• 🎉 Inflation sharply decreased to 4.49% from 23.41% the previous year.
• 💹 Foreign exchange reserves reached USD 14.51 billion by year-end.
• 📈 FBR tax collections rose 26.13% year-on-year to PKR 11.74 trillion.
• 📉 SBP implemented cumulative rate cuts of 950 bps, bringing the policy rate down to 11%.
• 📊 3M, 6M, and 12M tenors closed at 11.01%, 10.89%, and 10.85%, down 896bps, 902bps, and 783bps, respectively.
• 🤝 Pakistan issued its first 15-year zero-coupon bond, raising PKR 288 billion at a 12.70% cut-off.
• ⭐ JS Fixed Term Munafa Fund invested in government securities across plans with varying maturities.
• 🛡️ Strong risk management mitigated interest rate volatility.
• ✨ Management Company has an asset manager rating of ‘AM2++’ with a ‘Stable Outlook’ from PACRA.
• 🔍 Messrs Grant Thornton Anjum Rahman Chartered Accountants will continue as Fund’s auditors for the next year.
• 🤝 Directors expressed gratitude to Securities and Exchange Commission of Pakistan and Digital Custodian Company Limited

🎯 Investment Thesis

A HOLD recommendation is appropriate given the fund’s focus on government securities and stable manager rating. While showing decent returns, factors such as inflationary pressure, interest rate risks, and sector dynamics should be considered. Price target to stay within NAV of 100.80, for stability in 12 months.

⚡ Flash Summary

JSIL-FUNDS announced: FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2025 (JS FUND OF FUNDS). Basic analysis suggests neutral sentiment. Professional review recommended.

📌 Key Takeaways

• JSIL-FUNDS made announcement: FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2025 (JS FUND OF FUNDS)
• Automated analysis: HOLD signal detected
• Signal strength: 5/10
• This is basic analysis – manual review recommended
• Professional CFA analysis unavailable

🎯 Investment Thesis

Basic HOLD indication for JSIL-FUNDS. Manual verification required.