May-15 · 2015-06-05 · May-15 ECONOMY The Current Account witnessed a surplus in the month of...

May-15

ECONOMY The Current Account witnessed a surplus in the month of Apr-15 of around USD 275mn against a revised deficit of USD 20mn in the month of Mar-15. The Current Account surplus was driven by higher foreign remittances while a dip in imports also improved the Trade Deficit. The Balance of trade in Apr-15 improved a bit to a deficit of USD 925mn from a deficit of USD 1.25bn in the previous month. For 10MFY15, the Current Account Deficit narrowed to USD 1.36bn from USD 2.93bn in the same period last year, a significant improvement of 54% YoY. Workers’ remittances for the month of Apr-15 clocked in at USD 1.64bn against USD 1.57bn in Mar-15, an increase of 4% MoM. Overall remittances for 10MFY15 have increased to USD 14.9bn up around 16% YoY.

FX reserves witnessed a slight dip in May-15 to USD 17.49bn towards the end of May-15 from USD 17.6bn at the end of Apr-15 due to repayment of some multilateral loans. Towards the end of Jun-14 FX reserves had reached USD 14.4bn. Going forwards, we expect foreign reserves to further augment from current levels as the next IMF tranche gets released along with further privatization proceeds.

CPI inflation for May-15 came in slightly higher than market consensus where on a YoY basis the CPI came in at 3.16%YoY while on a MoM basis CPI increased by 0.76%MoM due to higher food inflation. SBP cuts its discount rate by 1% in the May-15 policy meeting. Average inflation for the first 11 months has clocked in at 4.68% YoY leaving a difference with the Discount rate of 232 bps.

With the rise in foreign reserves along with lower international oil prices, the PKR consolidated against the USD and traded flat for the month of May-15.

MONEY MARKET REVIEW In May, the State Bank of Pakistan borrowed funds worth PKR 211bn in two T-bill auctions against the target of 175bn while there was a maturity of PKR 459bn. In the last auction, cut off yield for 3 month, 6month and 12month T-bills averaged at 6.6055%, 6.6350% and 6.7168% respectively.

Furthermore, SBP borrowed funds of PKR 63bn against the target of PKR 50bn through the sale of 3,5 and 10 years PIBs averaged at 7.3650%, 8.0111% and 9.1369% and no bids were received in 20 years tenor. SBP will announce the next monetary policy in July’2015.

EQUITY MARKET REVIEW The KSE-30 witnessed a decline of 3.2%MoM in the month of May-15 following up from sharp gains in the prior month. Volumes on the KSE-30 declined to an average of 61mn shares as investors chose to remain sidelined and wait for the budget. Following the cut in the discount rate by 1% the banking sector witnessed some selling.

The broader KSE 100 index declined in sync by 1.99% with cements generally outperforming while the banking sector, as discussed earlier, was the laggard.

For the month of May-15, FIPI turned into an inflow of USD 15mn from an inflow of USD 34mn in the previous month. Going forward, with international Oil prices still trading substantially down YoY, market may have further upside as the index rerating theme plays up however we expect volatility to increase as we go into the budget.

Monthly YoY Inflation

0.0%

4.0%

8.0%

12.0%

16.0%

Apr-

12

Jul-1

2

Oct

-12

Jan-

13

Apr-

13

Jul-1

3

Oct

-13

Jan-

14

Apr-

14

Jul-1

4

Oct

-14

Jan-

15

Apr-

15

Source: Pakistan Bureau of Statistics

Interbank rates KIBOR (Average) May ’15 vs. Apr ’15 7.

4

7.1

7.1 7.

3

7.3 7.

5 7.67.

9

7.9

7.9 8.

1

8.1 8.

2 8.4

6.50

7.00

7.50

8.00

8.50

9.00

1M 3M 6M 9M 1Y 2Y 3Y

May '15 Apr '15

Source: State Bank of Pakistan

Market activity Daily volume vs. KSE-30 movement

20,000 20,200 20,400 20,600 20,800 21,000 21,200 21,400 21,600 21,800 22,000

-

20

40

60

80

100

120

4-May 8-May 14-May 20-May 26-May

Shrs in mnVolume (L.H.S) KSE-30 (R.H.S)

Source: Karachi Stock Exchange

Performance data and analytics MUFAP Recommended Format May-15

Investment philosophy UTP is a balanced fund that aims to preserve and grow investor’s capital in the long term while providing a regular stream of current income on an annual basis. The fund operates a diverse portfolio of equity and fixed income investments whereby the equity component is meant to provide the growth in capital while dividends on the equity component along with the fixed income investments help generate the current income.

Key information Fund type Open endCategory Balanced SchemeFund launch date 27 October, 1997Net Assets (PKR mn) 1,480.85NAV (PKR) 148.07Benchmark 50% 6M KIBOR & 50% KSE 30 IndexManagement fee 2.00% (Exclusive of Sindh Sales Tax)Front-end Load 3.00%Back-end Load NILPricing mechanism Forward Trustee Central Depository Company of Pakistan Ltd.Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor KPMG Taseer Hadi & Co.Risk profile MediumFund ranking (PACRA) 3 Star (1 year), 4 Star (3 year) & 3 Star (5 year)Listing LSELeverage NILManagement Quality Rating AM2- by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRA

Performance (%) Cumulative return1 1M 1Y 3Y 7Y Launch Avg. Ann.*

Fund -2.10 10.48 94.47 106.87 1460.78 16.89Benchmark -1.30 6.66 54.50 69.85 806.17 13.34Difference -0.80 3.82 39.97 37.02 654.61 3.56

* Average Annualized Return since inception as per Morning Star formula

Monthly performance (%) FY15 FY14 FY13 FY12 FY11

Jul 2.42 5.47 3.57 -0.15 4.22Aug -6.41 -5.57 5.07 -1.21 -3.10Sep 3.76 -0.66 -0.06 4.13 0.40Oct 3.43 2.44 1.64 0.39 3.57Nov 5.31 6.40 4.01 -2.44 4.13Dec 3.88 4.53 1.89 -2.45 4.58Jan 4.50 1.18 2.37 7.38 2.08Feb -1.95 -0.19 4.73 5.16 -4.30Mar -8.59 4.49 1.70 4.88 7.85Apr 8.55 4.07 1.64 2.08 -0.45May -2.10 1.18 9.46 -0.67 -3.29Jun -1.36 -0.08 -1.05 -2.40YTD 12.00 23.56 42.01 16.60 13.23Benchmark 6.04 18.21 22.77 8.37 18.08Difference 5.96 5.35 19.24 8.23 -4.85

Non Compliant Investments under Circular 07/2009 Name of Investment

TypeValue before

provisionProvision held

(if any)Value after provision

% of Net Assets

% of Gross Assets

Agritech Ltd. Sukuks 117,601,483 (117,601,483) - 0.00 0.00

Azgard Nine Ltd.a PPTFC 31,980,766 (31,980,766) - 0.00 0.00

Agritech Ltd.b PPTFC - - - 0.00 0.00

Azgard Nine Ltd.c PPTFC - - - 0.00 0.00 (a) The commercial paper amounting to Rs. 75 mn of Azgard Nine Ltd has been settled through Issuance of 15,000 PPTFC's of an equivalent amount in the name of the fund. The said PPTFCs were restructured and ANL provided 772,253 shares of Agritech Limited at the rate of Rs. 35 each which reduced our provision accordingly. During the month of January 2013 5000 PPTFC'S have been disposed off. (b) Fund has received Agritech PPTFC's against interest receivable of Agritech Sukuk which is valued at zero but cost is carried at 18,665,000. (c) The Fund has received 3,853 Zero Coupon PPTFC against interest receivable of unlisted TFC's. Since these PPTFC's are received against already defaulted securities and even MUFAP started its revaluation, the management as a matter of prudence is not revaluing said PPTFC's. These PPTFC's are valued at zero but cost is carried at 19,265,000.

Fund manager's review The out-going month witnessed a lackluster ambience in the Equity Markets owing to the prevailing uncertainty around the Budget for the Fiscal Year 2016. Talks of increased CGT and ambiguity on the taxes on dividends and bonus shares kept the investors at bay. The yields, on the Fixed Income side, witnessed a steep fall as the State Bank of Pakistan reduced the Discount Rate to 7% and also introduced a new measure of Target Rate at 50bps below the Discount Rate. SBP had been eyeing to reduce the overnight volatility in the secondary market and therefore, the Target Rate has been introduced which has been largely mis-assumed by the market participants as a very negative event.

Fund manager's review (continued) The Banking sector's deposits are stacked with high yielding doubt digit longer-dated PIBs and are likely to post higher than expected earnings in next couple of quarters as well.

On the economic front, the S&P's credit upgrade, burgeoning FX reserves, falling inflation, additional tax measures, revised GIDC, improving Trade Balance and Foreigners' remittances is likely to keep the economy strong and thus the positive is too strong to let the market fall in the medium term. Moreover, the entire outlook on the country has materially improved post CPEC announcement which, indeed, is going to alter the business climate of the country (if implemented on time). Hence, we retain our overall positive stance and remain focused on prudent stock selection to enhance your return. Your portfolio selection shall be re-strategised once the clarity on the budget and it's impact on the economy and the market is unveiled.

Asset allocation (%) May-15 Apr-15

Cash 17.03 9.98 Placement with Banks and DFIs - - Equity 54.11 60.25 TFCs / Sukkuks - - PIBs - - T Bills 28.56 26.67 Other including receivables 0.29 3.10 Total 100.00 100.00

Equity sector breakdown (%) May-15 Apr-15

Automobile Assembler 14.45 13.36 Commercial Banks 12.31 14.52 Insurance 6.08 6.48 Food & Personal Care Products 5.16 4.96 Automobile Parts & Accessories 4.21 4.05 Others 11.91 16.88 Total 54.11 60.25

Top holding (%age of total assets) Indus Motor Co. Ltd. 8.69 Pak Suzuki Motor Co. Ltd. 5.75 Rafhan Maize Products Ltd. 5.16 United Bank Ltd. 4.51 IGI Insurance Ltd. 4.31 The General Tyre & Rubber Co. of Pakistan Ltd. 4.21 Nishat Mills Ltd. 4.09 Century Paper & Board Mills Ltd. 3.13 Bank Alfalah Ltd. 2.90 Allied Bank Ltd. 2.68

Asset quality (%age of total assets) AAA, 28.6%

AA, 17.0%

Statistical analysis Fund Benchmark

Beta 0.5 1.0Standard Deviation 15.0% 21.9%Largest Month Gain 14.0% 19.3%Largest Month Loss -24.0% -33.8%% Positive Months 72.2% 64.6%

Investment Committee Members Dr. Ali Akhtar Ali - Chief Executive Officer Mr. Khawar Iqbal - Chief Financial Officer Mr. Zohaib Pervez, CFA - Fund Manager Mr. Suleman Rafiq Maniya - Head of Research

Contact us JS Investments Limited Toll Free: 0800 - 00887 E-mail: [email protected] Website: www.jsil.com

1. Cumulative return is based as per MUFAP stated methodology.

Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s liability to the tune of Rs. 31,532,583, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 3.15 / 2.1%. For details investors are advised to read the Note 9 of the latest Financial Statements of the Scheme.


Investment philosophy The main objective of JSGF is to enable the Certificate Holders to participate in a diversified portfolio of high quality equity securities listed on the stock exchanges and to maximize the investment return, by prudent investment management.

Key information Fund type Open endCategory Equity SchemeFund launch date 06 June, 2006 *Net Assets (PKR mn) 2,527.46NAV (PKR) 156.97Benchmark KSE30 IndexManagement fee 2.00% (Exclusive of Sindh Sales Tax)Front-end Load 3.00%Back-end Load NILPricing mechanism Forward Trustee MCB Financial Services LtdDealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor Ernst & Young Ford Rhodes Sidat Hyder & Co.Risk profile HighFund ranking (PACRA) 4 Star (1 year), 4 Star (3 year) & 2 Star (5 year)Listing LSELeverage NILManagement Quality Rating AM2- by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRA

Performance (%) Cumulative return1

1M 1Y 2Y 3Y LaunchFund -2.67 8.23 52.29 140.20 143.75Benchmark -3.21 3.08 24.28 75.54 72.24Difference 0.54 5.15 28.01 64.66 71.51

Monthly performance (%)

FY15 FY14 FY13 FY12 FY11Jul 2.92 11.41 3.80 -1.13 6.80Aug -9.21 -8.85 5.36 -5.05 -7.98Sep 4.22 0.45 -0.71 5.12 2.96Oct 1.46 1.83 2.34 -3.31 2.45Nov 3.53 15.14 6.32 -3.28 6.24Dec 8.28 4.63 1.24 -3.95 9.50Jan 8.17 1.43 2.12 8.93 1.43Feb -5.12 0.06 7.11 9.60 -6.08Mar -11.16 6.43 2.25 6.89 8.54Apr 11.54 3.18 3.00 2.49 -0.09May -2.67 1.78 14.87 2.07 1.98Jun -1.28 -0.87 -0.35 -3.54YTD 9.64 40.12 56.91 17.92 22.56Benchmark 2.76 25.96 35.95 2.90 21.24Difference 6.88 14.16 20.96 15.02 1.32

Fund manager's review The out-going month witnessed a lackluster ambience in the Equity Markets owing to the prevailing uncertainty around the Budget for the Fiscal Year 2016. Talks of increased CGT and ambiguity on the taxes on dividends and bonus shares kept the investors at bay. The yields, on the Fixed Income side, witnessed a steep fall as the State Bank of Pakistan reduced the Discount Rate to 7% and also introduced a new measure of Target Rate at 50bps below the Discount Rate. SBP had been eyeing to reduce the overnight volatility in the secondary market and therefore, the Target Rate has been introduced which has been largely mis-assumed by the market participants as a very negative event. The Banking sector's deposits are stacked with high yielding doubt digit longer-dated PIBs and are likely to post higher than expected earnings in next couple of quarters as well.

Fund manager's review (continued) On the economic front, the S&P's credit upgrade, burgeoning FX reserves, falling inflation, additional tax measures, revised GIDC, improving Trade Balance and Foreigners' remittances is likely to keep the economy strong and thus the positive is too strong to let the market fall in the medium term. Moreover, the entire outlook on the country has materially improved post CPEC announcement which, indeed, is going to alter the business climate of the country (if implemented on time). Hence, we retain our overall positive stance and remain focused on prudent stock selection to enhance your return. Your portfolio selection shall be re-strategised once the clarity on the budget and it's impact on the economy and the market is unveiled. Asset allocation (%)

May-15 Apr-15Cash 16.34 7.94 Equity 80.86 88.70 Other including receivables 2.80 3.36 Total 100.00 100.00


Automobile Assembler 19.41 18.69 Insurance 12.26 12.36 Commercial Banks 8.37 11.79 Oil & Gas Marketing Companies 8.02 7.88 Food & Personal Care Products 6.77 6.72 Others 26.04 31.26 Total 80.86 88.70

Top holding (%age of total assets) Indus Motor Co. Ltd. 10.91 Pak Suzuki Motor Co. Ltd. 8.51 Attock Petroleum Ltd. 8.02 IGI Insurance Ltd. 6.92 Rafhan Maize Products Ltd. 6.77 Attock Refinery Ltd. 6.12 Pakistan National Shipping Corporation Ltd. 5.50 Adamjee Insurance Co. Ltd. 5.33 The General Tyre & Rubber Co. of Pakistan Ltd. 4.43 Nishat Mills Ltd. 3.56



Investment Committee Members Dr. Ali Akhtar Ali - Chief Executive Officer Mr. Khawar Iqbal - Chief Financial Officer Mr. Arslan Asif Soomro - Fund Manager Mr. Suleman Rafiq Maniya - Head of Research

Contact us JS Investments Limited Toll Free: 0800 - 00887 E-mail: [email protected] Website: www.jsil.com Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s liability to the tune of Rs. 90,408,237, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 5.62 / 3.6%. For details investors are advised to read the Note 7.1 of the latest Financial Statements of the Scheme.

* Converted into open end scheme on 19 July, 2013. 1 Cumulative return is based as per MUFAP stated methodology.


Investment philosophy The fund maintains a portfolio of high yielding equity securities aiming at earnings derived from capital appreciation and dividend income. The portfolio seeks capital growth through investments in listed equity securities with better-than-average appreciation potential and liberal dividend policies. To benefit from changing interest rate environment and some portion of the portfolio is also kept in cash and near cash instruments (excluding TDR) which may include Government securities not exceeding ninety (90) days maturity.

Key information Fund type Open endCategory Equity SchemeFund launch date 14 January, 1996 *Net Assets (PKR mn) 958.56NAV (PKR) 179.67Benchmark KSE30 IndexManagement fee 2.00% (Exclusive of Sindh Sales Tax)Front-end Load 3.00%Back-end Load NILPricing mechanism Forward Trustee MCB Financial Services LtdDealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor KPMG Taseer Hadi & Co.Risk profile HighFund ranking (PACRA) 3 Star (1 year), 4 Star (3 year) & 1 Star (5 year)Listing LSELeverage NILManagement Quality Rating AM2- by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRA

Performance (%) Cumulative return1 1M 1Y 2Y 3Y 5Y

Fund -3.52 6.33 45.32 139.34 237.03Benchmark -3.21 3.08 24.28 75.54 126.95Difference -0.31 3.25 21.04 63.80 110.08


Jul 2.04 8.16 3.57 -0.10 7.08Aug -6.80 -7.20 5.88 -3.25 -6.28Sep 4.69 -0.82 1.11 4.09 0.47Oct 1.33 3.02 4.23 -0.60 8.20Nov 2.17 12.94 4.98 -5.32 7.58Dec 5.83 4.30 1.86 -2.97 6.14Jan 6.26 0.57 1.37 7.42 1.14Feb -2.35 0.73 7.90 5.08 -4.31Mar -10.97 6.46 2.58 5.61 6.27Apr 10.44 2.87 3.74 0.00 1.66May -3.52 2.13 14.40 5.13 -0.57Jun -1.00 -0.16 0.09 -2.77YTD 7.39 35.52 64.30 15.25 25.89Benchmark 2.76 25.96 35.95 2.90 21.24Difference 4.63 9.56 28.35 12.35 4.65



May-15 Apr-15Cash 19.13 11.38 Equity 79.30 87.85 Other including receivables 1.57 0.78

Total 100.00 100.00

Equity sector breakdown (%)

May-15 Apr-15Commercial Banks 17.58 22.35 Automobile Assembler 17.23 16.97 Insurance 10.24 10.21 Food & Personal Care Products 7.78 7.66 Sugar & Allied Industries 7.70 7.89 Others 18.77 22.76 Total 79.30 87.85

Top holding (%age of total assets) Indus Motor Co. Ltd. 9.28 Pak Suzuki Motor Co. Ltd. 7.96 Rafhan Maize Products Ltd. 7.78 Al-Abbas Sugar Mills Ltd. 7.70 IGI Insurance Ltd. 5.45 United Bank Ltd. 4.83 Adamjee Insurance Co. Ltd. 4.79 Allied Bank Ltd. 4.79 Bank Al - Habib Ltd. 4.73 Synthetic Products Enterprises Ltd. 4.68

Statistical analysis

Fund BenchmarkBeta 0.6 1.0Standard Deviation 21.5% 28.2%Largest Month Gain 21.4% 25.2%Largest Month Loss -24.4% -45.1%% Positive Months 66.0% 61.1%


Contact us JS Investments Limited Toll Free: 0800 - 00887 E-mail: [email protected] Website: www.jsil.com Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s liability to the tune of Rs. 38,807,591 if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 7.27 / 4.0%. For details investors are advised to read the Note 7.1 of the latest Financial Statements of the Scheme.

* Converted into open end scheme on 27 June, 2013.

1 Cumulative return is based as per MUFAP stated methodology.


Investment philosophy JS LCF is an open-end Equity Scheme that aims to benefit from an attractive Capital Market in an economy with growth potential, to maximize the total investment return consisting of a combination of capital appreciation and dividend income. Consistent with its Investment Objective, the Fund shall invest primarily in equity securities of listed Large-Cap companies with market capitalization of over Rupees one billion. The remaining Funds shall be invested in Authorized Investments including cash and/or near cash instruments which include cash in bank accounts, and Government securities not exceeding ninety (90) days maturity.

Key information Fund type Open endCategory Equity SchemeFund launch date 14 May, 2004 *Net Assets (PKR mn) 1,036.81NAV (PKR) 105.39Benchmark KSE30 IndexManagement fee 2.00% (Exclusive of Sindh Sales Tax)Front-end Load 3.00%Back-end Load NILPricing mechanism Forward Trustee Central Depository Company of Pakistan Ltd.Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor KPMG Taseer Hadi & Co.Risk profile HighFund ranking (PACRA) 3 Star (1 year), 3 Star (3 year) & 3 Star (5 year)Listing LSELeverage NILManagement Quality Rating AM2- by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRA


Fund -3.00 27.88 82.77 177.77 450.71 16.69Benchmark -3.21 3.08 24.28 75.54 184.27 9.91Difference 0.21 24.80 58.49 102.23 266.44 6.78* Average Annualized Return since inception as per Morning Star formula


Jul 3.43 12.94 4.07 -1.09 5.36Aug -10.37 -8.41 4.39 -6.17 -4.36Sep 8.70 -1.23 -1.16 6.94 0.48Oct 6.87 3.16 1.89 -2.67 11.10Nov 7.34 12.98 6.40 -3.43 8.58Dec 9.16 5.55 1.40 -4.21 5.52Jan 8.86 4.48 2.87 9.03 2.06Feb -3.83 -6.70 7.98 9.81 -6.34Mar -9.81 8.30 3.96 4.94 12.22Apr 12.66 3.63 0.66 0.44 -0.39May -3.00 3.40 12.08 3.08 0.62Jun -1.79 0.52 -1.16 -0.14YTD 30.21 39.64 54.57 14.87 38.38Benchmark 2.76 25.96 35.95 2.90 21.24Difference 27.45 13.68 18.62 11.97 17.14


Fund manager's review (continued) On the economic front, the S&P's credit upgrade, burgeoning FX reserves, falling inflation, additional tax measures, revised GIDC, improving Trade Balance and Foreigners' remittances is likely to keep the economy strong and thus the positive is too strong to let the market fall in the medium term. Moreover, the entire outlook on the country has materially improved post CPEC announcement which, indeed, is going to alter the business climate of the country (if implemented on time). Hence, we retain our overall positive stance and remain focused on prudent stock selection to enhance your return. Your portfolio selection shall be re-strategised once the clarity on the budget and it's impact on the economy and the market is unveiled.


Cash 16.30 2.29 Equity 81.07 92.74 Other including receivables 2.63 4.96 Total 100.00 100.00


Commercial Banks 17.68 24.09 Automobile Assembler 16.30 15.75 Oil & Gas Marketing Companies 7.52 7.49 Automobile Parts & Accessories 6.84 6.89 Paper & Board 6.69 6.13 Others 26.05 32.40 Total 81.07 92.74

Top holding (%age of total assets) Indus Motor Co. Ltd. 10.40 Attock Petroleum Ltd. 7.52 The General Tyre & Rubber Co. of Pakistan Ltd. 6.84 Century Paper & Board Mills Ltd. 6.69 Attock Refinery Ltd. 6.18 IGI Insurance Ltd. 6.03 Pak Suzuki Motor Co. Ltd. 5.90 Bank Alfalah Ltd. 5.75 Pakistan National Shipping Corporation Ltd. 5.49 Habib Bank Ltd. 4.64



Investment Committee Members Dr. Ali Akhtar Ali - Chief Executive Officer Mr. Khawar Iqbal - Chief Financial Officer Mr. Arslan Asif Soomro - Fund Manager Mr. Suleman Rafiq Maniya - Head of Research

Contact us JS Investments Limited Toll Free: 0800 - 00887 E-mail: [email protected] Website: www.jsil.com 1 Cumulative return is based as per MUFAP stated methodology.

Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s liability to the tune of Rs. 39,880,333, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 4.05 / 3.8%. For details investors are advised to read the Note 7.1 of the latest Financial Statements of the Scheme.

* Converted into open end scheme on 26 September, 2010.


Investment philosophy JS Islamic Fund [JS ISF] aims to grow investor’s capital in the long term in adherence with principles of Shariah compliance as advised by the Shariah Advisory Council (SAC) of this fund. The fund investments are limited to asset classes approved by the Shariah Advisory Council (SAC) and all companies under investment consideration are semiannually screened for Shariah compliance.

Key information Fund type Open endCategory Shariah Compliant Islamic - Equity SchemeFund launch date 27 December, 2002Net Assets (PKR mn) 516.57NAV (PKR) 93.86Benchmark KMI-30 IndexManagement fee 2.00% (Exclusive of Sindh Sales Tax)Front-end Load 3.00%Back-end Load NILPricing mechanism Forward Trustee Central Depository Company of Pakistan Ltd.Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor KPMG Taseer Hadi & Co.Risk profile HighFund ranking (PACRA) 4 Star (1 year), 3 Star (3 year) & 2 Star (5 year)Listing LSELeverage NILManagement Quality Rating AM2- by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRA

Performance (%) Cumulative return1

1M 1Y 2Y 3Y Launch Avg. Ann.*Fund -1.15 36.29 86.20 172.36 631.28 17.35Benchmark -1.03 16.35 45.23 128.01 511.66 15.68Difference -0.12 19.94 40.97 44.35 119.62 1.67* Average Annualized Return since inception as per Morning Star formula

Monthly performance (%)

FY15 FY14 FY13 FY12 FY11Jul 3.79 15.35 3.24 2.57 7.66Aug -11.70 -11.98 6.71 -4.25 -4.86Sep 9.19 1.59 0.11 7.38 2.14Oct 8.71 1.02 -0.36 1.10 3.67Nov 7.98 10.07 1.40 -6.35 7.66Dec 8.68 4.84 1.89 -7.14 6.59Jan 7.41 5.64 3.05 11.00 6.00Feb -1.86 -3.33 7.08 6.68 -6.44Mar -10.57 7.37 2.83 12.78 10.77Apr 13.79 3.46 2.07 -3.64 2.67May -1.15 0.81 11.39 5.59 0.31Jun 0.67 -0.64 -0.12 -0.43YTD 35.38 38.43 45.51 25.84 40.23Benchmark 14.64 29.89 54.41 13.57 43.66Difference 20.74 8.54 -8.90 12.27 -3.43 Fund manager's review The out-going month witnessed a lackluster ambience in the Equity Markets owing to the prevailing uncertainty around the Budget for the Fiscal Year 2016. Talks of increased CGT and ambiguity on the taxes on dividends and bonus shares kept the investors at bay. The yields, on the Fixed Income side, witnessed a steep fall as the State Bank of Pakistan reduced the Discount Rate to 7% and also introduced a new measure of Target Rate at 50bps below the Discount Rate. On the economic front, the S&P's credit upgrade, burgeoning FX reserves, falling inflation, additional tax measures, revised GIDC, improving Trade Balance and Foreigners' remittances is likely to keep the economy strong and thus the positive is too strong to let the market fall in the medium term.

Fund manager's review (continued) Moreover, the entire outlook on the country has materially improved post CPEC announcement which, indeed, is going to alter the business climate of the country (if implemented on time). Hence, we retain our overall positive stance and remain focused on prudent stock selection to enhance your return. Your portfolio selection shall be re-strategised once the clarity on the budget and it's impact on the economy and the market is unveiled.


Cash 4.36 8.36 Equity 94.80 90.89 Other including receivables 0.85 0.74 Total 100.00 100.00


May-15 Apr-15Automobile Assembler 32.85 31.01 Cement 18.43 18.49 Oil & Gas Marketing Companies 12.33 11.57 Refinery 10.71 9.81 Textile Composite 7.60 7.30 Others 12.88 12.71 Total 94.80 90.89

Top holding (%age of total assets) Indus Motor Co. Ltd. 15.14 Attock Petroleum Ltd. 12.33 Attock Refinery Ltd. 10.71 Pak Suzuki Motor Co. Ltd. 10.33 Nishat Mills Ltd. 7.60 Millat Tractors Ltd. 7.39 Lucky Cement Ltd. 6.73 Cherat Cement Co. Ltd. 6.46 Thal Ltd. 6.36 Meezan Bank Ltd. 5.41



Investment Committee Members Dr. Ali Akhtar Ali - Chief Executive Officer Mr. Khawar Iqbal - Chief Financial Officer Mr. Arslan Asif Soomro - Fund Manager Mr. Suleman Rafiq Maniya - Head of Research Contact us JS Investments Limited Toll Free: 0800 - 00887 E-mail: [email protected] Website: www.jsil.com Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s liability to the tune of Rs. 12,639,307, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 2.30 / 2.4%. For details investors are advised to read the Note 7.1 of the latest Financial Statements of the Scheme. 1 Cumulative returns are based as per MUFAP stated methodology.


Investment philosophy JS FoF is a fund of funds that aims to grow investor’s capital in the long term while diversifying the asset manager risk bundled together with the benefits of an asset allocation fund. The fund operates a diverse portfolio of equity, balanced, fixed income and money market funds (both open and closed ended) with the option to adjust the asset mix as equity markets rise or fall and the economy strengthens or weakens. Key information Fund type Open endCategory Fund of Fund SchemeFund launch date 31 October, 2005Net Assets (PKR mn) 179.42NAV (PKR) 52.26Benchmark Average of asset allocation funds returnsManagement fee 1.00% (Exclusive of Sindh Sales Tax)Front-end Load 3.00%Back-end Load NILPricing mechanism Forward Trustee Central Depository Company of Pakistan Ltd.Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor KPMG Taseer Hadi & Co.Risk profile MediumListing LSELeverage NILManagement Quality Rating AM2- by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRA Performance (%) Cumulative return1

1M 1Y 2Y 3Y Launch Avg. Ann.*Fund -1.97 18.43 50.32 104.44 271.76 14.68Benchmark -1.53 19.27 40.04 78.45 144.04 9.75Difference -0.44 -0.84 10.28 25.99 127.72 4.93* Average Annualized Return since inception as per Morning Star formula Monthly performance (%)

FY15 FY14 FY13 FY12 FY11Jul 4.88 13.60 0.36 0.03 3.52Aug -7.37 -8.62 3.11 -3.49 -1.08Sep 3.52 6.78 -0.38 6.18 1.41Oct 2.93 -0.05 1.52 0.88 1.88Nov 4.47 7.87 3.20 0.10 10.27Dec 5.34 4.63 1.07 -1.88 6.45Jan 5.35 3.32 2.31 4.34 2.53Feb -0.95 -2.52 4.35 4.21 -4.80Mar -7.01 5.38 1.20 5.66 6.70Apr 10.03 4.43 2.59 -1.28 3.55May -1.97 1.77 11.12 2.98 0.01Jun -0.67 -10.01 1.15 -1.68YTD 19.23 40.09 21.01 20.00 31.70Benchmark 17.60 19.79 26.91 9.88 18.27Difference 1.63 20.30 -5.90 10.12 13.43 Fund manager's review The out-going month witnessed a lackluster ambience in the Equity Markets owing to the prevailing uncertainty around the Budget for the Fiscal Year 2016. Talks of increased CGT and ambiguity on the taxes on dividends and bonus shares kept the investors at bay. The yields, on the Fixed Income side, witnessed a steep fall as the State Bank of Pakistan reduced the Discount Rate to 7% and also introduced a new measure of Target Rate at 50bps below the Discount Rate. SBP had been eyeing to reduce the overnight volatility in the secondary market and therefore, the Target Rate has been introduced which has been largely mis-assumed by the market participants as a very negative event. The Banking sector's deposits are stacked with high yielding doubt digit longer-dated PIBs and are likely to post higher than expected earnings in next couple of quarters as well.


May-15 Apr-15Open-end 43.68 68.89 Close-end - - T Bills - - Cash 56.02 30.85 Other including receivables 0.29 0.27 Total 100.00 100.00

Top holding (%age of total assets) JS Large Cap. Fund 24.51 JS Islamic Fund 19.17



Investment Committee Members Dr. Ali Akhtar Ali - Chief Executive Officer Mr. Khawar Iqbal - Chief Financial Officer Mr. Zohaib Pervez, CFA - Fund Manager Mr. Suleman Rafiq Maniya - Head of Research Contact us JS Investments Limited Toll Free: 0800 - 00887 E-mail: [email protected] Website: www.jsil.com Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s liability to the tune of Rs. 11,923,656, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 3.47 / 6.6%. For details investors are advised to read the Note 7.1 of the latest Financial Statements of the Scheme.



Investment philosophy JS AAA Fund is a dynamic asset allocation fund that aims to achieve superior risk adjusted growth in investor’s capital over the long term. The fund operates a diverse portfolio of equity, fixed income and money market investments and it may constantly adjust the asset mix as equity markets rise or fall and the economy strengthens or weakens. The fund is allowed to invest up to 100% of net assets in any one type of asset class.

Key information Fund type Open endCategory Asset Allocation SchemeFund launch date 28 June, 2005Net Assets (PKR mn) 106.28NAV (PKR) 14.69Benchmark 50% KSE30 Index + 50% Avg. 6M KIBORManagement fee 2.00% (Exclusive of Sindh Sales Tax)Front-end Load 3.00%Back-end Load NILPricing mechanism Forward Trustee Central Depository Company of Pakistan Ltd.Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor Ernst & Young Ford Rhodes Sidat Hyder & Co.Risk profile HighListing LSELeverage NILManagement Quality Rating AM2- by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRA


Fund -5.35 2.81 38.06 72.17 93.28 6.86Benchmark -1.30 6.59 23.20 54.21 86.86 6.50Difference -4.05 -3.78 14.86 17.96 6.42 0.36

* Average Annualized Return since inception as per Morning Star formula


Jul 3.09 10.10 3.41 -0.27 7.66Aug -7.15 -12.69 4.16 -3.56 -5.10Sep 2.27 0.68 -1.75 4.89 1.01Oct 4.23 1.28 -0.34 -0.88 4.42Nov 2.27 12.76 3.66 -4.44 4.13Dec 2.15 5.63 -0.25 -5.58 4.38Jan 7.04 2.44 0.49 9.40 2.12Feb -1.91 -3.06 5.40 5.04 -7.32Mar -10.60 3.85 -0.70 6.94 8.59Apr 8.84 0.91 3.13 0.20 0.34May -5.35 12.94 5.84 0.92 0.09Jun -0.27 -2.15 -0.40 -3.55YTD 3.09 36.87 22.51 11.68 16.62Benchmark 5.98 18.13 22.69 5.00 21.24Difference -2.89 18.74 -0.18 6.68 -4.62



May-15 Apr-15Cash 79.69 11.41 Equity 17.83 82.37 PIBs - - T Bills - - Other including receivables 2.48 6.22 Total 100.00 100.00


Automobile Assembler 9.08 14.88 Oil & Gas Marketing Companies 6.14 - Automobile Parts & Accessories 2.61 4.91 Others - 62.57

Total 17.83 82.37

Top holding (%age of total assets) Pak Suzuki Motor Co. Ltd. 9.08 Pakistan State Oil Co. Ltd. 6.14 The General Tyre & Rubber Co. of Pakistan Ltd. 2.61



Investment Committee Members Dr. Ali Akhtar Ali - Chief Executive Officer Mr. Khawar Iqbal - Chief Financial Officer Mr. Mohammad Waqar - Fund Manager Mr. Suleman Rafiq Maniya - Head of Research Contact us JS Investments Limited Toll Free: 0800 - 00887 E-mail: [email protected] Website: www.jsil.com Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s liability to the tune of Rs. 3,991,972, if the same were not made the NAV per unit/return of the Scheme would be higher by Re. 0.55 / 3.8%. For details investors are advised to read the Note 7.1 of the latest Financial Statements of the Scheme.



Investment philosophy JS KSE-30 Index Fund is an index fund that aims to track the performance of the KSE-30 Index by investing in constituent companies of the index in proportion to their weighting. The fund targets sophisticated investors who can time their entry and exit from the fund in accordance with the expected performance of the equity market or for investors who seek long term exposure to the equity market. Key information Fund type Open endCategory Index Tracker SchemeFund launch date 29 May, 2006Net Assets (PKR mn) 47.30NAV (PKR) 30.79Benchmark KSE30 IndexManagement fee 1.50% (Exclusive of Sindh Sales Tax)Front-end Load 2.00%Back-end Load NILPricing mechanism Forward Trustee MCB Financial Services LtdDealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor KPMG Taseer Hadi & Co.Risk profile HighListing LSELeverage NILManagement Quality Rating AM2- by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRA Performance (%) Cumulative return1

1M 1Y 2Y 3Y Launch Avg. Ann.*Fund -2.90 4.54 28.01 73.49 104.89 8.29Benchmark -3.21 3.08 24.28 75.54 74.77 6.39Difference 0.31 1.46 3.73 -2.05 30.12 1.89* Average Annualized Return since inception as per Morning Star formula Monthly performance (%)

FY15 FY14 FY13 FY12 FY11Jul 2.95 11.40 5.23 -0.53 9.14Aug -6.00 -5.17 5.28 -8.19 -5.76Sep 2.70 -2.55 -1.03 6.71 0.77Oct -0.17 4.90 0.75 1.32 5.22Nov 0.92 4.77 1.39 -3.51 6.46Dec 2.20 2.99 2.26 -5.22 7.04Jan 6.86 2.24 2.02 9.05 3.24Feb -1.99 -2.54 5.46 6.86 -8.72Mar -10.60 3.22 -2.46 4.48 7.52Apr 12.25 4.84 2.70 0.72 1.13May -2.90 1.34 10.16 -2.38 0.46Jun 0.09 -3.84 -0.34 -0.62YTD 4.44 27.46 30.76 7.75 27.12Benchmark 2.76 25.96 35.95 2.90 21.24Difference 1.68 1.50 -5.19 4.85 5.88 JS KSE-30 Index Fund vs. KSE-30 Index

-20%

-10%

0%

10%

20%

Dec/11 Jul/12 Jan/13 Jul/13 Jan/14 Jul/14 Jan/15

JS KSE-30 Index Fund KSE-30 Index


Cash 3.73 4.42 Equity 95.32 95.03 Other including receivables 0.95 0.55

Total 100.00 100.00


May-15 Apr-15Commercial Banks 30.56 25.67 Oil & Gas Exploration Companies 19.55 20.68 Fertilizer 13.84 15.36 Cement 10.48 11.43 Power Generation & Distribution 9.49 10.08 Others 11.41 11.81 Total 95.32 95.03

Top holding (%age of total assets) Habib Bank Ltd. 9.76 MCB Bank Ltd. 9.17 Oil & Gas Development Co. Ltd. 9.14 Fauji Fertilizer Co. Ltd. 7.54 The Hub Power Co. Ltd. 6.46 Pakistan Petroleum Ltd. 6.26 United Bank Ltd. 5.93 Engro Corporation Ltd. 5.03 Lucky Cement Ltd. 4.46 Pakistan State Oil Co. Ltd. 3.56



Investment Committee Members Dr. Ali Akhtar Ali - Chief Executive Officer Mr. Khawar Iqbal - Chief Financial Officer Mr. Zohaib Pervez, CFA - Fund Manager Mr. Suleman Rafiq Maniya - Head of Research Contact us JS Investments Limited Toll Free: 0800 - 00887 E-mail: [email protected] Website: www.jsil.com Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s liability to the tune of Rs. 1,989,681, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 1.30 / 4.2%. For details investors are advised to read the Note 7.1 of the latest Financial Statements of the Scheme.



Investment philosophy JS Cash Fund (JS CF) is an open-end 'Money Market Scheme' that mainly invests in low risk short-term fixed income instruments including money market instruments to provide a regular and reasonable return to investors while ensuring high liquidity. The Fund shall invest primarily in short duration instruments and may even hold some or all of its assets in cash for the purpose maintaining liquidity. Key information Fund type Open endCategory Money Market SchemeFund launch date 29 March, 2010Net Assets (PKR mn) 1,628.09NAV (PKR) 110.37Benchmark BM CF1

Management fee 0.50% (Exclusive of Sindh Sales Tax)Front-end Load 1.00%Back-end Load NILPricing mechanism BackwardTrustee MCB Financial Services Ltd Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor KPMG Taseer Hadi & Co.Risk profile Extremely LowListing LSEFund stability rating (JCR-VIS) AA+ (f)Leverage NILManagement Quality Rating AM2- by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRA Performance (%) Annualised performance 2

1M 6M 1Y 3Y LaunchFund 6.65 8.26 8.84 9.54 12.27Benchmark 6.51 7.61 8.43 9.52 11.45Difference 0.15 0.65 0.41 0.03 0.82 Monthly performance (%) Annualised performance 3

FY15 FY14 FY13 FY12 FY11Jul 8.62 7.28 10.42 11.66 11.00Aug 8.69 7.24 13.78 13.06 10.88Sep 8.68 5.83 8.35 11.85 10.89Oct 9.05 7.27 9.77 13.81 12.32Nov 9.34 7.65 7.65 10.43 11.43Dec 8.33 8.04 7.97 9.64 13.16Jan 10.03 8.06 7.72 11.03 10.76Feb 7.62 8.17 7.10 9.72 12.31Mar 7.17 8.86 7.79 10.31 12.32Apr 8.93 8.88 8.29 10.79 12.61May 6.65 8.91 8.17 10.00 11.28Jun 8.84 7.70 10.13 11.80YTD 8.77 8.21 9.11 11.62 12.01Benchmark 8.35 8.73 8.98 10.09 10.65Difference 0.42 -0.52 0.13 1.53 1.36 Fund manager's review JS Cash Fund reported an annualized return of 6.65% for the month of May, 2015 as compared to the annualized benchmark return of 6.51%, outperforming by 15 basis points. During the month fund has increased its exposure in Treasury Bill to time declining interest rate scenario. Going forward we will reallocate our investments as per market conditions while keeping greater exposure in government securities having maturity on lower side and looking for better Term Deposit rates at the quarter end. The next policy rate will be announced in July, 2015.


Cash 1.13 2.60 Placement with Banks and DFIs 18.29 28.15 T Bills 80.55 69.23 Other including receivables 0.02 0.01 Total 100.00 100.00

Asset quality (%age of total assets)

AAA, 80.6

AA, 0.9

AA+, 18.3

A+, 0.1

AA-, 0.0


Fund BenchmarkStandard Deviation 0.6% 0.4%Largest Month Gain 1.2% 0.9%Largest Month Loss 0.0% 0.0%% Positive Months 100.0% 100.0%Duration (Days) 56Weighted Avg. Maturity (Days) 56

Investment Committee Members Dr. Ali Akhtar Ali - Chief Executive Officer Mr. Khawar Iqbal - Chief Financial Officer Mr Asim Ilyas - Fund Manager Mr. Suleman Rafiq Maniya - Head of Research Contact us JS Investments Limited Toll Free: 0800 - 00887 E-mail: [email protected] Website: www.jsil.com 1. 50% Average return of 3-months deposit rates of AA and above rated scheduled

commercial Bank(s), and 50% average 3-months T-Bill rate. 2. Annualised return is based as per MUFAP stated methodology. Disclosure for WWF Liability under Circular 17 of 2012 Consequent upon the approval of the Board of Directors, the Management Company of the fund has prudently indemnify the unrecognized amount of WWF amounting to Rs. 10.884 million aggregated up to June 30, 2013. The fund is maintaining prospective provisioning against WWF with effect from July 01, 2013. The Scheme has maintained provisions against Worker's Welfare Fund’s liability to the tune of Rs. 5,549,340, if the same were not made the NAV per unit/return of the Scheme would be higher by Re. 0.38 / 0.3%. For details investors are advised to read the Note 7.1 of the latest Financial Statements of the Scheme.


Investment philosophy JS IF is an income fund that aims to preserve investor’s capital while providing a regular stream of current income on an annual basis which is higher than that offered by commercial banks on deposits of a similar liquidity profile as this fund. The fund operates a diverse portfolio of investment-grade debt securities, government securities and money market instruments. The fund may maintains liquidity in the form of spread transactions and bank deposits.

Key information Fund type Open endCategory Income Fund SchemeFund launch date 26 August, 2002Net Assets (PKR mn) 730.86NAV (PKR) 95.81Benchmark 40% 1Year PKRV Rate + 60% 6M KIBORManagement fee 0.75% (Exclusive of Sindh Sales Tax)Front-end Load 1.00%Back-end Load NILPricing mechanism Forward Trustee MCB Financial Services LtdDealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor Ernst & Young Ford Rhodes Sidat Hyder & Co.Risk profile Low To MediumListing LSEFund stability rating (PACRA) A+ (f)Leverage NILManagement Quality Rating AM2- by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRA

Performance (%) Annualised performance 1 1M 6M 1Y 3Y Launch

Fund 2.59 12.05 11.25 10.89 13.84Benchmark 7.02 8.49 9.64 11.23 15.60Difference -4.44 3.56 1.61 -0.34 -1.76

Monthly performance (%) Annualised performance 2 FY15 FY14 FY13 FY12 FY11

Jul 7.44 4.86 11.24 11.58 9.22Aug 9.04 6.71 20.78 22.81 18.44Sep 9.55 -0.15 11.71 12.05 12.32Oct 8.90 5.81 11.72 21.02 14.29Nov 14.85 12.33 5.78 10.81 23.38Dec 20.84 7.77 23.72 6.45 15.66Jan 16.64 10.36 6.49 13.54 1.70Feb 7.55 7.29 -0.85 11.42 15.43Mar 5.65 12.38 7.00 11.29 17.44Apr 17.17 13.93 8.69 3.67 11.52May 2.59 -0.41 7.67 12.94 -79.51Jun 8.34 6.40 10.16 -1.28YTD 11.43 7.67 10.60 13.07 3.95Benchmark 9.51 10.30 10.38 13.01 10.02Difference 1.92 -2.63 0.22 0.05 -6.07

Non Compliant Investments under Circular 07/2009

Azgard Nine a TFC 6,661,110 (6,661,110) - - -

Azgard Nine b PPTFCs 31,980,766 (31,980,766) - - - Agritech Ltd.c Sukuk 59,572,782 (59,572,782) - - - Agritech Ltd.d PPTFC - - - - -

Dewan Cement e TFC 50,000,000 (49,990,000) 10,000 0.00 0.00 Azgard Nine f PPTFC - - - - -

Value after provision

% ofNet

Assets

% of GrossAssets

Name of Investment

TypeValue before

provision

Provision held

(if any)

a) The fund has made a full provision against the principal amount in accordance with the requirements of regulatory body & the provisioning policy of the Fund. (b) The CP of ANL has been settled through issuance of 15,000 PPTFCs in the name of the Fund. These PPTFCs have been restructured however, the mgt. as a matter of prudence has maintained the provision against the said PPTFCs. In lieu of restructuring of Azgard Nine existing debt securities, Agritech pledge shares has been credited in Faysal Bank (Trustee of the Issuer) CDS account. These shares are booked and marked to market accordingly. (c) The fund has made a full provision against the principal amount in accordance with the requirements of Circular 1 & the provisioning policy of the Fund. (d) The Fund has made a full provision against the principal amount of Agritech Limited’s Sukuk in accordance with the requirements of Circular 1 of 2009 issued by the SECP and the provisioning policy of the Fund. The Fund has received Agritech Limited’s PPTFC of face value of Rs. 11.245 million against interest due on Agritech Limited’s Sukuk which is not recognized as income by the Fund and these PPTFCs are valued at zero. (e) Non rated securities. (f) The fund received 4,827 zero coupon PPTFCs against interest receivable of listed and unlisted TFCs. Since these PPTFCs are received against already defaulted securities and have non-performing status in MUFAP, therefore the management as a matter of prudence maintained the provision against the said PPTFCs. These PPTFCs are valued at zero but cost is carried at 24,135,000.

Asset allocation (%)

May-15 Apr-15Cash 14.22 2.07 Placement with Banks and DFIs - - Equity* 0.93 0.99 T Bills 84.65 65.80 PIBs - 30.21 TFCs / Sukkuks - - Other including receivables 0.20 0.92 Total 100.00 100.00

* Under debt-swap arrangement with Azgard Nine Limited (ANL), the fund has received shares of Agritech Limited (AGL), against the investments of ANL-PPTFC and listed TFCs, these listed TFCs and PPTFCs had been fully provided. Asset quality (%age of total assets)

A+13.8%

AAA85.6%

AA0.6%

"<BBB"0.0%


Standard Deviation 4.6% 1.1%Largest Month Gain 3.7% 1.2%Largest Month Loss -10.3% 0.0%% Positive Months 91.6% 100.0%Duration (Yr) 0.52Weighted Avg. Maturity (Yr) 0.52

Investment Committee Members Dr. Ali Akhtar Ali - Chief Executive Officer Mr. Khawar Iqbal - Chief Financial Officer Mr Asim Ilyas - Fund Manager Mr. Suleman Rafiq Maniya - Head of Research Fund manager's review For the month of May, 2015, JSIF yielded an annualized return of 2.59% as compared to the benchmark of 7.02%, underperforming by -4.44%. During the month, fund diversified its portfolio towards Treasury Bills and sold PIBs because of expected increase in the inflation rate. We will maintain the portfolio towards Treasury Bills while looking for better rates in Term Deposit at quarter end and rebalance the investments accordingly. The monetary policy will be announced in July, 2015. Contact us JS Investments Limited Toll Free: 0800 - 00887 E-mail: [email protected] Website: www.jsil.com 1. Annualized performance return is based as per MUFAP stated methodology. Disclosure for WWF Liability under Circular 17 of 2012 Consequent upon the approval of the Board of Directors, the Management Company of the fund has prudently indemnified the unrecognized amount of WWF amounting to Rs. 20.426 million aggregated up to June 30, 2013. The fund is maintaining prospective provisioning against WWF with effect from July 01, 2013. The Scheme has maintained provisions against Worker's Welfare Fund’s liability to the tune of Rs. 2,607,393, if the same were not made the NAV per unit/return of the Scheme would be higher by Re. 0.34 / 0.4%. For details investors are advised to read the Note 7.1 of the latest Financial Statements of the Scheme.


Investment philosophy JS Islamic Government Securities Fund (JS IGSF) is an open end 'Shariah Compliant Sovereign Income Scheme' which aims at generating a stable stream of current HALAL income while ensuring low risk (volatility) and capital preservation in the medium to long term by investing primarily in Shariah Compliant Government Securities. Key information Fund type Open endCategory Shariah Compliant Income Scheme Fund launch date 5 June, 2013Net Assets (PKR mn) 197.60NAV (PKR) 105.43Benchmark BM IGSF1

Management fee 0.75% (Exclusive of Sindh Sales Tax)Front-end Load 1.00%Back-end Load NILPricing mechanism Forward Trustee MCB Financial Services Ltd Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor KPMG Taseer Hadi & Co.Risk profile Low to MediumListing LSEFund stability rating (PACRA) AA- (f)Leverage NILManagement Quality Rating AM2- by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRA

Performance (%) Annualised performance 2

1M 6M 1Y 2Y LaunchFund 7.42 7.93 6.23 7.81 7.86Benchmark 6.96 7.66 7.72 n/a 7.75Difference 0.45 0.27 -1.50 n/a 0.11 Monthly performance (%) Annualised performance 2

FY15 FY14 FY13Jul 2.42 6.83 n/aAug 3.13 6.91 n/aSep 4.26 7.88 n/aOct 6.45 6.81 n/aNov 5.54 12.54 n/aDec 5.80 9.47 n/aJan 12.25 6.55 n/aFeb 5.95 11.28 n/aMar 8.08 13.07 n/aApr 7.13 6.10 n/aMay 7.42 10.17 n/aJun 4.19 6.03YTD 6.39 8.80 6.03Benchmark 7.71 7.16 6.70Difference -1.33 1.64 -0.67 Fund manager's review The fund recorded 7.42% annualized return for the month of May, 2015 as compared to the benchmark return of 6.96%, outperforming its benchmark by 45 basis points. The fund maintained its investment towards government Ijara Sukuk because of downward revision of policy rate in the last monetary policy and the next policy will be announced in July, 2015.


Cash 13.28 11.01 Placement with Banks and DFIs - - TFCs / Sukkuks 82.71 85.43 Other including receivables 4.01 3.55

Total 100.00 100.00

Asset quality (%age of total assets)

AAA, 82.7

A+, 0.3

AA-, 13.0

Sukuks allocation - Top Ten Holding

82.71%

0.0%

25.0%

50.0%

75.0%

100.0%

125.0%

GoP Ijara Sukkuks


Fund BenchmarkStandard Deviation 0.9% 0.4%Largest Month Gain 1.1% 0.7%Largest Month Loss 0.0% 0.0%% Positive Months 100.0% 100.0%Weighted Avg. Maturity (Yr) 0.43

Investment Committee Members Dr. Ali Akhtar Ali - Chief Executive Officer Mr. Khawar Iqbal - Chief Financial Officer Mr Asim Ilyas - Fund Manager Mr. Suleman Rafiq Maniya - Head of Research

Contact us JS Investments Limited Toll Free: 0800 - 00887 E-mail: [email protected] Website: www.jsil.com 1 The benchmark of the scheme shall be the average 6 month Placement (Deposit) rate

of 3 Islamic Banks (including Islamic windows of Commercial Banks)

2 Annualized performance return is based as per MUFAP stated methodology. Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s liability to the tune of Rs. 1,042,105, if the same were not made the NAV per unit/return of the Scheme would be higher by Re. 0.56 / 0.5%. For details investors are advised to read the Note 7.1 of the latest Financial Statements of the Scheme.


Investment philosophy JS Pension Savings Fund (JS PSF) is designed to provide a secure source of savings and retirement income to individuals. JS PSF is a portable pension scheme allowing individuals the flexibility of contributions and portfolio customization through allocation of such contributions among equity and fixed income investment avenues suited to their specific needs and risk profile.

Key information Fund type Open endCategory Pension Savings FundFund launch date 26 June, 2007Benchmark n/aManagement fee 1.50% (Exclusive of Sindh Sales Tax)Front-end Load 3.00%Back-end Load NILPricing mechanism Forward Trustee Central Depository Company of Pakistan Ltd.Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor A. F. Ferguson & Co.Risk profile Investor dependent Leverage NILManagement Quality Rating AM2- by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRA

Net Assets (PKR mn) JS - PSF-Equity Sub Fund 127.63JS - PSF-Debt Sub Fund 182.04JS - PSF-MM Sub Fund 129.26

NAV (PKR) JS - PSF-Equity Sub Fund 381.79JS - PSF-Debt Sub Fund 207.56JS - PSF-MM Sub Fund 169.16

Performance (%) 1M 1Y 2Y 3Y Launch

JS - PSF-Equity Sub Fund -3.78 16.54 94.35 244.70 281.82JS - PSF-Debt Sub Fund 1 4.73 11.57 14.78 29.78 107.58JS - PSF-MM Fund 1 4.89 6.79 13.44 27.44 69.17

Monthly performance (%) Annualised performance1

FY15 FY14 FY15 FY14 FY15 FY14Jul 2.37 11.10 10.18 -20.78 5.62 4.98Aug -9.03 -6.02 10.22 -0.53 6.40 5.67Sep 6.19 -1.50 12.06 1.93 7.26 7.77Oct 12.91 1.66 11.13 7.07 6.47 7.55Nov 9.35 16.06 14.90 5.48 7.78 7.67Dec 4.98 6.01 18.85 6.93 7.62 5.92Jan 7.03 6.59 14.61 8.07 8.50 8.41Feb -3.96 -4.50 6.76 14.06 6.28 5.38Mar -13.63 10.29 7.47 11.73 5.65 6.65Apr 9.14 8.95 11.89 7.52 6.10 6.45May -3.78 5.27 4.73 2.35 4.89 7.40Jun -2.48 9.03 6.45YTD 19.51 61.51 11.71 4.36 6.78 6.91

Equity Debt 1 Money market 1

Fund manager's review The Debt and Money Market Sub Fund recorded 4.73% and 4.89% return for the month of May, 2015. The portfolio of these funds skewed towards Treasury Bill having maturity on higher side. Going forward we will keep the weighted average maturity for both sub funds on lower side because of higher inflationary expectation while remain invested in Treasury Bill and rebalance the portfolio accordingly. The monetary policy will be announced in July, 2015. The Equity Sub Fund recorded -3.78% returns for the month of May, 2015. The out-going month witnessed a lackluster ambience in the Equity Markets owing to the prevailing uncertainty around the Budget for the Fiscal Year 2016. Talks of increased CGT and ambiguity on the taxes on dividends and bonus shares kept the investors at bay.

Asset allocation (%) Equity May-15 Apr-15Cash 24.37 2.81 Equity 74.80 89.53 Other including receivables 0.83 7.66 Total 100.00 100.00

Debt May-15 Apr-15Cash 2.16 0.67 Equity* 0.09 0.10 TFCs / Sukkuks - - T Bills & PIBs 97.65 99.17 Other including receivables 0.09 0.07 Total 100.00 100.00

Money Market May-15 Apr-15Cash 3.85 6.13 Placement with Banks - - Equity* 0.64 0.70 T Bills 95.41 93.04 Other including receivables 0.10 0.12 Total 100.00 100.00

* Under debt-swap arrangement with Azgard Nine Limited (ANL), debt and money market sub funds have received shares of Agritech Limited (AGL), against the investments of ANL-PPTFC, these PPTFCs in sub funds had been fully provided. Equity sector breakdown (%)

May-15 Apr-15Automobile Assembler 17.09 16.21 Food & Personal Care Products 13.36 13.41 Insurance 12.46 12.46 Commercial Banks 8.36 17.17 Textile Composite 6.96 6.95 Others 16.58 23.32 Total 74.80 89.53

Top holding (%age of total assets) Indus Motor Co. Ltd. 9.52 Pak Suzuki Motor Co. Ltd. 7.57 Rafhan Maize Products Ltd. 7.51 Adamjee Insurance Co. Ltd. 7.14 Nishat Mills Ltd. 6.96 Thal Ltd. 6.02 Murree Brewery Co. Ltd. 5.85 Sitara Chemical Industries Ltd. 5.48 IGI Insurance Ltd. 5.32 Bank Alfalah Ltd. 5.16

Investment Committee Members Dr. Ali Akhtar Ali - Chief Executive Officer Mr. Khawar Iqbal - Chief Financial Officer Mr. Mohammad Waqar - Fund Manager Mr. Suleman Rafiq Maniya - Head of Research Contact us JS Investments Limited Toll Free: 0800 - 00887 E-mail: [email protected] Website: www.jsil.com Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s liability to the tune of Rs. 4,437,911, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 6.15 (ESF), Rs. 1.63 (DSF), Rs. 1.24 (MMF) / 1.6 % (ESF), 0.8% (DSF), 0.7% (MMF). For details investors are advised to read the Note 6.1 of the latest Financial Statements of the Scheme. 1 Annualized performance return is based as per MUFAP stated methodology.


Investment philosophy JS Islamic Pension Savings Fund (JS IPSF) is designed to provide a Halal and secure source of savings and retirement income to individuals according to the principles of Islamic Shariah. JS IPSF is a portable pension scheme allowing individuals the flexibility of contributions and portfolio customization through allocation of such contributions among equity, fixed income and other Halal investment avenues suited to their specific needs and risk profile.

Key information Fund type Open endCategory Shariah Compliant Voluntary Pension SchemeFund launch date 16 June, 2008Benchmark n/aManagement fee 1.50% (Exclusive of Sindh Sales Tax)Front-end Load 3.00%Back-end Load NILPricing mechanism Forward Trustee Central Depository Company of Pakistan Ltd.Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor A. F. Ferguson & Co.Risk profile Investor dependent Leverage NILManagement Quality Rating AM2- by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRA

Net Assets (PKR mn) JS - IPSF-Equity Sub Fund 114.66JS - IPSF-Debt Sub Fund 65.47JS - IPSF-MM Sub Fund 58.98

NAV (PKR) JS - IPSF-Equity Sub Fund 529.38JS - IPSF-Debt Sub Fund 179.51JS - IPSF-MM Sub Fund 158.89

Performance (%) 1M 1Y 2Y 3Y Launch

JS - IPSF-Equity Sub Fund -1.38 29.91 91.26 197.94 427.19JS - IPSF-Debt Sub Fund 1 6.46 4.00 11.19 20.39 78.76JS - IPSF-MM Sub Fund 1 6.71 5.30 12.53 20.21 58.23

Monthly performance (%) Annualised performance1

FY15 FY14 FY15 FY14 FY15 FY14Jul 2.68 11.92 0.61 7.04 2.72 7.05Aug -7.17 -13.00 0.14 6.42 1.32 6.10Sep 10.70 0.42 0.77 6.82 1.76 4.58Oct 4.65 2.58 5.98 6.42 6.19 6.21Nov 6.66 12.33 -8.03 10.64 0.64 7.90Dec 3.64 5.01 5.58 7.18 5.77 5.25Jan 5.39 1.83 11.85 7.20 12.56 5.79Feb 0.20 -2.33 6.53 6.39 6.12 7.71Mar -9.73 11.04 7.07 11.62 7.32 8.43Apr 10.35 7.41 6.37 3.26 7.13 5.31May -1.38 3.49 6.46 1.91 6.71 9.28Jun 2.58 3.74 3.79YTD 26.63 49.02 4.01 6.76 5.42 6.64

Money market 1Equity Debt 1

Fund manager's review In the month of May, 2015, JS Islamic Pension Savings Debt Sub Fund and Money Market Sub Fund delivered returns of 6.46% p.a. and 6.71% p.a. These fund’s maintained investments towards shariah compliant government Ijara Sukuk. The Equity Sub Fund recorded -1.38% returns for the month of May 2015. The out-going month witnessed a lackluster ambience in the Equity Markets owing to the prevailing uncertainty around the Budget for the Fiscal Year 2016. Talks of increased CGT and ambiguity on the taxes on dividends and bonus shares kept the investors at bay.

Asset allocation (%) Equity May-15 Apr-15Cash 12.43 10.35 Equity 85.29 89.16 Other including receivables 2.28 0.49 Total 100.00 100.00

Debt May-15 Apr-15Cash 3.61 2.39 IJARA Sukuk Bond 94.09 95.58 Other including receivables 2.29 2.04 Total 100.00 100.00

Money Market May-15 Apr-15Cash 3.46 2.27 IJARA Sukuk Bond 93.92 95.44 TDR - - Other including receivables 2.62 2.29 Total 100.00 100.00


Automobile Assembler 25.48 28.24 Oil & Gas Exploration Companies 10.19 12.10 Oil & Gas Marketing Companies 8.39 3.11 Food & Personal Care Products 7.79 7.86 Commercial Banks 6.40 6.63 Others 27.03 31.21 Total 85.29 89.16

Top holding (%age of total assets) Millat Tractors Ltd. 7.82 Rafhan Maize Products Ltd. 7.79 Pak Suzuki Motor Co. Ltd. 7.21 Indus Motor Co. Ltd. 7.17 Meezan Bank Ltd. 6.40 Synthetic Products Enterprises Ltd. 5.84 Pakistan Oilfields Ltd. 5.62 Pakistan State Oil Co. Ltd. 5.28

Thal Ltd. 4.84 Attock Refinery Ltd. 4.68


Contact us JS Investments Limited Toll Free: 0800 - 00887 E-mail: [email protected] Website: www.jsil.com

Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s liability to the tune of Rs. 2,878,513, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 9.60 (ESF), Rs. 1.32 (DSF), Rs. 1.02 (MMF) / 1.8% (ESF), 0.7% (DSF), 0.6% (MMF). For details investors are advised to read the Note 6.1 of the latest Financial Statements of the Scheme. 1 Annualized performance return is based as per MUFAP stated methodology.

May-15 · 2015-06-05 · May-15 ECONOMY The Current Account witnessed a surplus in the month of...

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