Signal: BUY

⚡ Flash Summary

JS Large Cap Fund’s annual report for the year ended June 30, 2025, reveals a strong performance amidst a backdrop of moderating economic growth in Pakistan. The fund achieved a return of 59.82%, surpassing its benchmark return of 58.92%. Net assets increased substantially from PKR 1,389.90 million to PKR 2,670.16 million. The fund also distributed an interim cash dividend of Rs 1.00 per unit, highlighting its commitment to delivering value to investors.

📌 Key Takeaways

• ✅ Fund return was 59.82%, outperforming the benchmark return of 58.92%.
• 📈 Net Assets surged from PKR 1,389.90 million to PKR 2,670.16 million.
• 💰 Interim cash dividend of Rs 1.00 per unit was distributed.
• 📊 Total expense ratio is 4.60%, including 0.55% for government levies.
• ⭐ Asset manager rating of ‘AM2++’ with a ‘Stable Outlook’ from PACRA.
• 🇵🇰 Pakistan’s equity market showed strong upward momentum, ranking among top performers globally.
• 🏦 Commercial Banks, Fertilizer, and Oil & Gas Exploration led sector gains.
• 💸 Foreign investors recorded net outflows of USD 303.8 million.
• 💼 The fund primarily invests in equity securities of listed Large-Cap companies.
• 🌱 The fund focuses on growth-oriented sectors with strong fundamentals.
• 🎯 The investment strategy remained aligned with improving macroeconomic indicators.
• ⚖️ Asset allocation: Equity 94.81%, Cash 4.77%.
• 📊 NAV per unit increased to PKR 320.89 from PKR 201.42.
• 📈 KSE-100 Index advanced by 60.15%.
• 🎯 FY2026 Federal Budget targets real GDP growth of 4.2% and headline inflation of 7.5%.

🎯 Investment Thesis

Given the fund’s substantial returns and solid financial position, a BUY recommendation is justified with a price target of PKR 380 within a medium-term (18-24 months) horizon. The positive economic outlook and active management strategies position the fund for further growth and value creation for investors.

⚡ Flash Summary

JS Islamic Fund (JSISF) reported a strong performance for the year ended June 30, 2025, with a fund return of 54.07% compared to the benchmark return of 46.25%. Net assets increased significantly from PKR 284.58 million to PKR 433.83 million. The fund maintains a focus on growth-oriented sectors and capitalizing on undervalued stocks. The Management Company has an asset manager rating of ‘AM2++’ with a ‘Stable Outlook’, reflecting strong management quality and consistent operational performance.

📌 Key Takeaways

• 📈 Fund return was 54.07%, exceeding the benchmark return of 46.25%.
• 💰 Net Assets surged from PKR 284.58 million to PKR 433.83 million.
• ⭐ Expense ratio is 5.15%, including 0.65% government levies.
• 💸 Interim cash dividend of Rs 1.00 per unit was paid.
• ✅ Asset manager rating is ‘AM2++’ with a ‘Stable Outlook’ from PACRA.
• 🏦 Foreign investors showed net outflows of USD 303.8 million.
• 🤝 Mutual Funds were major net buyers at USD 230.5 million.
• 📊 KSE-100 Index advanced by 60.15%.
• 💲 Average daily volumes on KSE-All Share Index rose 37%.
• 💹 Current account recorded a surplus of USD 2.1 billion.
• 🏦 Foreign exchange reserves reached USD 14.51 billion.
• 🎯 FY2026 Federal Budget targets real GDP growth of 4.2%.
• 🎯 FY2026 Federal Budget targets headline inflation of 7.5%.
• 🔬 External auditors changed to Messrs Yousuf Adil, Chartered Accountants.
• 📜 Shariah advisors changed to Al-Hilal Shariah Advisors.

🎯 Investment Thesis

The fund presents a BUY opportunity. Rationale: Excellent fund performance significantly outperforming its benchmark, strong growth in net assets, well managed expenses, and positive management quality. Target price based on the current growth trajectory and assuming a steady market return, a price target of PKR 275 per unit within the next 12 months is reasonable.

⚡ Flash Summary

JS Islamic Money Market Fund reported a strong year-end performance for June 30, 2025, with a fund return of 13.91% compared to the benchmark return of 10.41%. The Fund’s Net Assets increased significantly from PKR 3,018.86 million in 2024 to PKR 4,214.21 billion in 2025. The fund paid a Daily Dividend accumulating to Rs 9.74 per unit. The total expense ratio is 0.85%, which includes 0.14% of government levies on the Fund.

📌 Key Takeaways

• 💰 Fund return was 13.91% for the year ended June 30, 2025, outperforming the benchmark return of 10.41%.
• 📈 Net Assets surged from PKR 3,018.86 million in 2024 to PKR 4,214.21 billion in 2025.
• 💸 The Fund paid a Daily Dividend accumulating to Rs 9.74 per unit during the year.
• ✅ Total expense ratio stands at 0.85%, including 0.14% for government levies.
• ⭐ Asset manager rating is ‘AM2++’ with a ‘Stable Outlook’ from PACRA.
• 📊 PACRA maintained the stability rating of the Fund at “AA(f)”.
• 📜 Fund is Shariah-compliant.
• 🏦 Fund’s investments primarily focused on short-term Shariah-compliant bank placements and short-term Sukuks.
• 📉 Short-term tenors in the government securities market fell sharply, with 3M, 6M, and 12M closing at 11.01%, 10.89%, and 10.85%, respectively.
• 🚀 The issuance of Pakistan’s first 15-year zero-coupon bond, raising PKR 288 billion at a 12.70% cut-off, was a notable milestone.

🎯 Investment Thesis

BUY: The JS Islamic Money Market Fund presents a compelling investment opportunity due to its strong performance, increase in Net Assets, Shariah compliance, and well-managed risk profile. The Fund’s focus on short-term instruments provides stability and liquidity, making it suitable for investors seeking steady returns and capital preservation. Given the current monetary easing environment in Pakistan, the Fund’s strategy is well-positioned to benefit from declining yields.

⚡ 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.

⚡ Flash Summary

JS Government Securities Fund (JS GSF) reported a strong performance for the year ended June 30, 2025. The Fund’s return was 15.84% compared to the benchmark return of 14.35%. Net Assets increased significantly from PKR 6.11 billion to PKR 10.05 billion. The fund declared an interim cash dividend of Rs 12.82 per unit.

📌 Key Takeaways

• 📈 Fund outperformed its benchmark with a return of 15.84% versus 14.35%.
• 💰 Net Assets increased from PKR 6.11 billion to PKR 10.05 billion.
• 💸 Paid interim cash dividends of Rs 12.82 per unit.
• ⭐ Management Company maintains an ‘AM2++’ rating with a ‘Stable Outlook’ from PACRA.
• ✅ PACRA reaffirmed the fund stability rating of ‘AA(f)’.
• 🏛️ Invested primarily in T-bills and PIBs, adjusting asset allocation to capitalize on monetary easing.
• 💵 Net income for the year was reported as PKR 1,401.765 million
• ✔️ The fund holds bank balances with AAA-rated banks
• 🔍 Total expense ratio (TER) of the Fund stands at 2.05%, which includes 0.27% of government levies
• 🏦 The fund’s holdings consist of Government Securities, including market treasury bills, Pakistan Investment Bonds-Floater, and Pakistan Investment Bonds-Fixed.
• 💼 Fund Manager is highly experienced, as indicated by his designation and qualification

🎯 Investment Thesis

BUY. The fund’s strong performance, experienced fund manager, and asset growth indicate a positive investment outlook. The fund is recommended for investors seeking stable returns from government securities. Given the recent changes in regulation by the SECP, this may present challenges to operations. Price target 125.00 Rs, time horizon: MEDIUM_TERM