Strength-6

⚡ 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.