market review - js investments · market review july 2016 economy monthly yoy inflation cpi for the...

Market Review July 2016

ECONOMY CPI for the month of Jul-16 was recorded at 4.12% YoY compared to 3.19% YoY recorded in Jun-16. On a MoM basis CPI recorded an increase of 1.3%. The sequential increase is attributable to rise in food item prices by 4.7% YoY and 2.5% MoM compared to 2.3% YoY and 1.4% MoM rise in the previous month. State Bank of Pakistan announced its 4th monetary policy for the year 2016 whereby it maintained the policy rate at 5.75% where benign inflation, easing pressures on the external account, and outlook on strengthened foreign reserves counter potent risk of slowdown in exports and upsurge in oil prices. In Jul-16, foreign reserves reduced slightly by 0.45% MoM to stand at USD 23.0bn largely supported by flows from multilateral sources and tranche received from IMF. Pakistan received USD 1.1bn cumulative from World Bank and ADB, while USD 501mn was received from the IMF under the EFF facility. On external front current account recorded a deficit of USD 61mn in June-16 taking FY16 deficit to stand at USD 2.5bn compared to a deficit of USD 2.7bn in the same period last year. This marks a visible 6.8% YoY improvement backed by low import bill on account of fall in oil prices. Going forward, upward inflation trajectory would be a key macro indicator to watch out as we expect inflation for the year to remain under 5.5%. Moreover, overall strengthening of macro landscape, better fiscal management and higher growth targets should remain key themes for the year. MONEY MARKET REVIEW In July, the State Bank of Pakistan borrowed funds worth PKR 642.6bn in the two T-bill auction against the month target of 400bn while maturity of PKR 284.2bn and the cut off yield for 3, 6 and 12 month averaged at 5.7873%, % 5.8214%and 5.8370% respectively. Furthermore, SBP borrowed funds of PKR 236.063bn against the target of PKR 100bn through the sale of 3, 5 and 10 years PIBs averaged at 6.3848%,6.8824% and 7.9981% respectively while SBP rejected the bids in 20 years. Going forward the possible reversal of inflation trajectory provide little room for downward adjustment of policy rate. EQUITY MARKET REVIEW The strong index rally that started in Feb-16 has entered into sixth consecutive month in Jul-16 with yet another stellar MoM return of 5.03%.Activity on the bourse resumed to normal levels from lows seen in Jun-16 as trading activity normalized post shortened sessions during Ramadan. Overall index gains in Jul-16 were quite broad-based with automobile (+14%), construction (+11%) and IPPs (+5%) contributing to index rise.

Foreign Institution Portfolio Investment (FIPI) remained positive for the second straight month at USD 23.2 million while hefty participation by mutual funds saw net buy of USD 55.6 million during the month. Pakistan continues to be the best performing frontier market with 7MCYTD returns of 20.5%.

Post inclusion announcement in MSCI EM, the KSE-100 performed relatively on-par with the MSCI EM index registering a return of 4.62% MoM, shy of 10bps, compared to MSCI EM Index return of 4.72% MoM over Julʼ16.

Monthly YoY Inflation

0.0%

4.0%

8.0%

12.0%

16.0%

Apr

-12

Jul-1

2O

ct-1

2Ja

n-13

Apr

-13

Jul-1

3O

ct-1

3Ja

n-14

Apr

-14

Jul-1

4O

ct-1

4Ja

n-15

Apr

-15

Jul-1

5O

ct-1

5Ja

n-16

Apr

-16

Jul-1

6

Interbank rates KIBOR (Average) Jun ’16 vs. May ’16

6.2

6.0

6.0 6.

3

6.3 6.

4 6.5

6.2

6.1

6.1

6.4

6.4 6.

6 6.7

5.50

6.00

6.50

7.00

7.50

8.00

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

July '16 June '16

Market activity Daily volume vs. KSE-30 movement

21,000

22,000

23,000

-20 40 60 80

100 120 140 160

4-Jul 14-Jul 20-Jul 26-Jul

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

Unit Trust of Pakistan (UTP) July 2016

MUFAP Recommended Format

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) 1,389.76NAV (PKR) 160.36Benchmark 50% 6M KIBOR & 50% KSE 30 IndexManagement fee 2.00% (Exclusive of SST & FED)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 PSXLeverage NILStability Rating 2 Star (1 Year), 3 Star (3 Year) , 3 Star ( 5 Year) by PACRAManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive Officer Mr. Suleman Rafiq Maniya - Fund ManagerMr. Khawar Iqbal - Chief Financial Officer Mr. Yousuf Muhammad Farooq - Head of Research

Fund manager's review Your Fund was 3.34% up in the outgoing month outperforming the benchmark and is expected to continue to do so. The month of July saw the bullish momentum continue at the bourse with the KSE100 index once again closing at all time highs though with some volatility as the post Brexit international markets remained lackluster while international oil prices witnessed bearish cycle throughout the month under review on the back of more than expected inventory levels of US and concerns over China’s economic slowdown. The KSE30 index went up by 5.03%MoM in July-16 as key index movers were large cap stocks on the development of Pakistan being promoted to MSCI Emerging market continued to attract both local and foreign investors’ interest while during the outgoing month FIPI stood at USD 23 mn relative to USD 74 mn last month. Double digit growth in private sector credit off take during the CY16 to date shows effectiveness of expansionary monetary policy. With completeness of IMF programme, current regime will have more cushion to follow more economic growth oriented measures that will result better performance for equities in the near to medium term.

Non Compliant Investments under Circular 07/2009 Name ofInvestment Type Value before

provision

Provision held

(if any)

Value after provision

% of Net Assets

% of Gross Assets

Agritech Ltd. Sukuks 112,298,115 112,298,115 - 0.00 0.00Azgard Nine Ltd.a PPTFC 31,980,766 (31,980,766) - 0.00 0.00Agritech Ltd.b PPTFC - - - 0.00 0.00Azgard 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.

Cumulative return is based as per MUFAP stated methodology.

Performance (%) 1M 1Y 3Y 5Y Launch Avg. Ann.*

Fund 3.34 7.45 47.03 157.17 1648.86 16.47Benchmark 2.76 4.77 27.98 80.12 883.48 12.95Difference 0.58 2.68 19.05 77.05 765.38 3.52

* Average Annualized Return since inception as per Morning Star formula

Monthly performance (%) FY17 FY16 FY15 FY14 FY13

July 3.34 2.89 2.42 5.47 3.57August -0.90 -6.41 -5.57 5.07September -4.24 3.76 -0.66 -0.06October 5.66 3.43 2.44 1.64November -2.36 5.31 6.40 4.01December 2.10 3.88 4.53 1.89January 0.99 4.50 1.18 2.37February -4.01 -1.95 -0.19 4.73March 2.85 -8.59 4.49 1.70April 2.25 8.55 4.07 1.64May 1.84 -2.10 1.18 9.46June 0.20 1.35 -1.36 -0.08YTD 3.34 6.98 13.52 23.56 42.01Benchmark 2.76 3.84 7.85 18.21 22.77Difference 0.58 3.14 5.67 5.35 19.24

Asset allocation (%) Jul-16 Jun-16

Cash 17.86 38.99 Placement with Banks and DFIs - - Equity 63.28 59.52 TFCs / Sukkuks 0.73 0.69 PIBs - - T Bills 16.37 - MTS / Spread Transactions 0.17 - Other including receivables 1.60 0.79 Total 100.00 100.00

Asset quality (%age of total assets) AA-

15.53%AA+

0.55%AA

1.77%A+

0.70%

AAA*16.37%

* Govt. securities (0.00%)

Equity sector breakdown (%) Jul-16 Jun-16

Oil & Gas Exploration Companies 8.08 9.28 Commercial Banks 7.25 0.00 Fertilizer 6.47 10.14 Automobile Assembler 5.57 4.41 Food & Personal Care Products 5.15 4.60 Others 30.75 31.09 Total 63.28 59.52

Top holding (%age of total assets) Engro Corporation Ltd. 6.47 Pak Suzuki Motor Co. Ltd. 5.57 Nishat Mills Ltd. 4.54 Oil & Gas Development Co. Ltd. 4.48 Synthetic Products Enterprises Ltd. 4.42 Pakistan State Oil Co. Ltd. 3.87 Adamjee Insurance Co. Ltd. 3.64 Pakistan Petroleum Ltd. 3.61 Century Paper & Board Mills Ltd. 3.37 Rafhan Maize Products Ltd. 3.16

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. 31,865,820, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 3.68 / 2.3%. For details investors are advised to read the Note 9.1 of the latest Financial Statements of the Scheme. . However, from July 01, 2015 WWF is not being charged.

Statistical analysis Fund Fund BM

Information Ratio 0.07 Beta 0.5 1.0Correlation 0.72 Largest Month Gain 14.0% 19.3%Standard Deviation 14.7% Largest Month Loss -24.0% -33.8%Expense Ratio* 0.28% % Positive Months 72.1% 65.0%

* For the month of July 2016.

EQU

ITY

SCH

EME

JS Growth Fund (JS GF) July 2016


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) 2,189.86NAV (PKR) 170.77Benchmark KSE30 IndexManagement fee 2.00% (Exclusive of SST & FED)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 Grant Thorton Anjum Rahman & CoRisk profile HighListing PSXLeverage NILStability Rating 2 Star (1 Year), 3 Star (3 Year) , 2 Star ( 5 Year) by PACRAManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Khawar Iqbal - Chief Financial OfficerMr. AAH Soomro, CFA, FRM - Fund ManagerMr. Yousuf Muhammad Farooq - Head of Research Fund manager's review Seems like the equity investors had fasted for too long away from the market and thus, came back strongly to propel the index upwards after the extended holidays. The month of July showed how the market would appear once the glorified status of MSCI Emerging Market is crowned upon. Coupling that with sustained - and often repeated "consumerism" - in Pakistan, the investors geared up for an extended final leg of the rally towards the eventual destination of an Emerging Market. Taking a proxy for solid platform being laid by resilient economic growth, investors kept betting upon Banking, Cement, Autos and Textile sector. A foreign net inflow of $23.3Mn is just a beginning towards the re-rating of a newer Pakistan we anticipated last year. Investors, local and global, have kept their sight on improving Car sales, Cement Sales, Oil sales, machinery import, Power projects, Infrastructure, Foreign exchange reserves and other indicators chalking the growth trajectory within the country. Industrialists, as well as foreign manufacturers, are putting more money on the table (Pakistan's economy) as evident by investment pouring in from China in Power, Infrastructure, Oil pipeline, Railways, etc and by current majority stake acquired by Royal Friesland Campina (RFC) in Engro Foods worth $447mn. Current motorway projects and fast-track LNG power plants of 3600MW are likely to further rejuvenate the investors’ confidence in the economy and may lead to a fresh wave of industrialism in Pakistan. Your Fund Manager keeps a combination of value and growth stocks, with a tilt towards the later. We believe the growth oriented storied, such as, Thal Limited, General Tyre, Indus Motors, Pak Suzuki, AgriAutos, Nishat Mills, Synthetic Products, Century Paper, Cherat Cement, DG Khan Cement, Amreli Steels, Pakistan State Oil, Attock Petroleum, Attock Refinery etc would be the key out-performers in the Fiscal Year. Simultaneously, we see a comfortable risk-adjusted return of 15-20% per annum stemming from Banking sector which offers a very handsome 6-7% dividend yield at current prices. The recent crackdown on the property market's revaluation of declared amount, in addition to the Capital Gain tax, would lure investors towards the Equity Markets. We are comfortable, confident and careful in our approach towards investment decision making and would advise you to do the same.


Fund 3.46 3.90 51.95 216.80 168.61 10.22Benchmark 5.03 2.27 25.22 96.73 86.73 6.34Difference -1.57 1.63 26.73 120.07 81.88 3.87



July 3.46 3.44 2.92 11.41 3.80August -2.40 -9.21 -8.85 5.36September -6.80 4.22 0.45 -0.71October 6.53 1.46 1.83 2.34November -4.82 3.53 15.14 6.32December 3.81 8.28 4.63 1.24January -0.79 8.17 1.43 2.12February -4.46 -5.12 0.06 7.11March 4.74 -11.16 6.43 2.25April 3.49 11.54 3.18 3.00May 1.02 -2.67 1.78 14.87June 1.06 2.53 -1.28 -0.87YTD 3.46 3.88 12.42 40.12 56.91Benchmark 5.03 0.37 5.67 25.96 35.95Difference -1.57 3.51 6.75 14.16 20.96 Asset allocation (%)

Jul-16 Jun-16Cash 17.04 28.68Equity 82.13 69.40Other including receivables 0.83 1.93Total 100.00 100.00 Equity sector breakdown (%)

Jul-16 Jun-16Commercial Banks 19.76 15.46Insurance 13.89 13.20Oil & Gas Exploration Companies 11.82 0.00Oil & Gas Marketing Companies 8.34 8.99Sugar & Allied Industries 5.93 6.14Others 22.39 25.60Total 82.13 69.40 Top holding (%age of total assets) Adamjee Insurance Co. Ltd. 7.23MCB Bank Ltd. 7.19IGI Insurance Ltd. 6.66Pakistan State Oil Co. Ltd. 5.66Habib Bank Ltd. 4.82United Bank Ltd. 4.72Shahtaj Sugar Mills Ltd. 4.53Rafhan Maize Products Ltd. 4.29Pakistan Oilfields Ltd. 4.01Oil & Gas Development Co. Ltd. 3.93 Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s (WWF) liability to the tune of Rs. 91,288,040, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 7.12 / 4.2%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged. * Converted into open end scheme on 19 July, 2013.

Cumulative return is based as per MUFAP stated methodology.



*For the month of July 2016.

JS Value Fund (JS VF) July 2016



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) 1,241.01NAV (PKR) 208.87Benchmark KSE30 IndexManagement fee 2.00% (Exclusive of SST & FED)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 HighListing PSXLeverage NILStability Rating 1 Star (1 Year), 3 Star (3 Year) , 3 Star ( 5 Year) by PACRAManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Khawar Iqbal - Chief Financial OfficerMr. Suleman Rafiq Maniya - Fund ManagerMr. Yousuf Muhammad Farooq - Head of Research Fund manager's review Your fund was 2.99% up in the outgoing month underperforming the benchmark by 2.04% due to lackluster performance of E&P sector. The month of July saw the bullish momentum continue at the bourse with the KSE100 index once again closing at all time highs though with some volatility as the post Brexit international markets remained lackluster while international oil prices witnessed bearish cycle throughout the month under review on the back of more than expected inventory levels of US and concerns over China’s economic slowdown. The KSE30 index went up by 5.03%MoM in July-16 as key index movers were large cap stocks on the development of Pakistan being promoted to MSCI Emerging market continued to attract both local and foreign investors’ interest while during the outgoing month FIPI stood at USD 23 mn relative to USD 74 mn last month. Double digit growth in private sector credit off take during the CY16 to date shows effectiveness of expansionary monetary policy. With completeness of IMF programme, current regime will have more cushion to follow more economic growth oriented measures that will result better performance for equities in the near to medium term.

Performance (%) 1M 1Y 3Y 5Y 10Y Avg. Ann.*


* Average Annualized Return since last ten year as per Morning Star formula Monthly performance (%)

FY17 FY16 FY15 FY14 FY13July 2.99 5.69 2.04 8.16 3.57August -2.69 -6.80 -7.20 5.88September -5.87 4.69 -0.82 1.11October 7.55 1.33 3.02 4.23November -3.25 2.17 12.94 4.98December 4.21 5.83 4.30 1.86January 0.09 6.26 0.57 1.37February -5.23 -2.35 0.73 7.90March 5.88 -10.97 6.46 2.58April 3.44 10.44 2.87 3.74May 1.74 -3.52 2.13 14.40June 2.49 2.16 -1.00 -0.16YTD 2.99 13.72 9.72 35.52 64.30Benchmark 5.03 0.37 5.67 25.96 35.95Difference -2.04 13.35 4.05 9.56 28.35 Asset allocation (%)


Jul-16 Jun-16Commercial Banks 20.23 18.92Oil & Gas Exploration Companies 11.38 0.00Insurance 9.44 11.19Sugar & Allied Industries 7.14 8.50Oil & Gas Marketing Companies 6.00 5.55Others 27.63 22.05Total 81.82 66.21 Top holding (%age of total assets) Al-Abbas Sugar Mills Ltd. 7.14Adamjee Insurance Co. Ltd. 6.91MCB Bank Ltd. 6.86Pakistan State Oil Co. Ltd. 6.00United Bank Ltd. 5.48Habib Bank Ltd. 4.80Nishat Mills Ltd. 4.54Rafhan Maize Products Ltd. 4.10Oil & Gas Development Co. Ltd. 3.90Synthetic Products Enterprises Ltd. 3.77 Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s (WWF) liability to the tune of Rs. 39,130,068 if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 6.59 / 3.2%. For details investors are advised to read the Note 9.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged.

* Converted into open end scheme on 27 June, 2013. Cumulative return is based as per MUFAP stated methodology.




EQU

ITY

SCH

EME

JS Large Cap. Fund (JS LCF) July 2016



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) 778.74NAV (PKR) 117.59Benchmark KSE30 IndexManagement fee 2.00% (Exclusive of SST & FED)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 HighListing PSXLeverage NILStability Rating 4 Star (1 Year), 4 Star (3 Year) , 4 Star ( 5 Year) by PACRAManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Khawar Iqbal - Chief Financial OfficerMr. AAH Soomro, CFA, FRM - Fund ManagerMr. Yousuf Muhammad Farooq - Head of Research

Fund manager's review Seems like the equity investors had fasted for too long away from the market and thus, came back strongly to propel the index upwards after the extended holidays. The month of July showed how the market would appear once the glorified status of MSCI Emerging Market is crowned upon. Coupling that with sustained - and often repeated "consumerism" - in Pakistan, the investors geared up for an extended final leg of the rally towards the eventual destination of an Emerging Market. Taking a proxy for solid platform being laid by resilient economic growth, investors kept betting upon Banking, Cement, Autos and Textile sector. A foreign net inflow of $23.3Mn is just a beginning towards the re-rating of a newer Pakistan we anticipated last year. Investors, local and global, have kept their sight on improving Car sales, Cement Sales, Oil sales, machinery import, Power projects, Infrastructure, Foreign exchange reserves and other indicators chalking the growth trajectory within the country. Industrialists, as well as foreign manufacturers, are putting more money on the table (Pakistan's economy) as evident by investment pouring in from China in Power, Infrastructure, Oil pipeline, Railways, etc and by current majority stake acquired by Royal Friesland Campina (RFC) in Engro Foods worth $447mn. Current motorway projects and fast-track LNG power plants of 3600MW are likely to further rejuvenate the investors’ confidence in the economy and may lead to a fresh wave of industrialism in Pakistan. Your Fund Manager keeps a combination of value and growth stocks, with a tilt towards the later. We believe the growth oriented storied, such as, Thal Limited, General Tyre, Indus Motors, Pak Suzuki, AgriAutos, Nishat Mills, Synthetic Products, Century Paper, Cherat Cement, DG Khan Cement, Amreli Steels, Pakistan State Oil, Attock Petroleum, Attock Refinery etc would be the key out-performers in the Fiscal Year. Simultaneously, we see a comfortable risk-adjusted return of 15-20% per annum stemming from Banking sector which offers a very handsome 6-7% dividend yield at current prices. The recent crackdown on the property market's revaluation of declared amount, in addition to the Capital Gain tax, would lure investors towards the Equity Markets. We are comfortable, confident and careful in our approach towards investment decision making and would advise you to do the same.


Fund 6.71 5.40 82.10 269.18 522.90 16.14Benchmark 5.03 2.27 25.22 96.73 208.19 9.65Difference 1.68 3.13 56.88 172.45 314.71 6.50



July 6.71 6.07 3.43 12.94 4.07August -3.30 -10.37 -8.41 4.39September -7.28 8.70 -1.23 -1.16October 7.83 6.87 3.16 1.89November -5.91 7.34 12.98 6.40December 4.67 9.16 5.55 1.40January -0.49 8.86 4.48 2.87February -5.33 -3.83 -6.70 7.98March 6.35 -9.81 8.30 3.96April 2.23 12.66 3.63 0.66May -0.21 -3.00 3.40 12.08June 1.50 1.18 -1.79 0.52YTD 6.71 4.77 31.74 39.64 54.57Benchmark 5.03 0.37 5.67 25.96 35.95Difference 1.68 4.40 26.07 13.68 18.62 Asset allocation (%)


Jul-16 Jun-16Cement 17.86 19.08Oil & Gas Marketing Companies 10.41 10.94Commercial Banks 8.31 5.97Automobile Assembler 7.16 8.69Insurance 6.41 7.70Others 30.44 33.26Total 80.58 85.65 Top holding (%age of total assets) Cherat Cement Co. Ltd. 6.97D. G. Khan Cement Co. Ltd. 6.53Pakistan State Oil Co. Ltd. 5.88The General Tyre & Rubber Co. of Pakistan Ltd. 4.78Attock Petroleum Ltd. 4.53Kohat Cement Ltd. 4.36Engro Corporation Ltd. 3.93Orix Leasing Pakistan Ltd. 3.88Indus Motor Co. Ltd. 3.83United Bank Ltd. 3.70

Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s (WWF) liability to the tune of Rs. 45,687,183, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 6.90 / 5.9%. For details investors are advised to read the Note 9.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged. * Converted into open end scheme on 26 September, 2010.




JS Islamic Fund (JS ISF) July 2016



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) 481.68NAV (PKR) 113.13Benchmark KMI-30 IndexManagement fee 2.00% (Exclusive of SST & FED)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 HighListing PSXLeverage NILStability Rating 5 Star (1 Year), 4 Star (3 Year) , 3 Star ( 5 Year) by PACRAManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Khawar Iqbal - Chief Financial OfficerMr. AAH Soomro, CFA, FRM - Fund ManagerMr. Yousuf Muhammad Farooq - Head of Research



Fund 9.76 12.87 99.30 310.39 797.05 17.50Benchmark 5.95 19.72 71.92 230.60 684.32 16.35Difference 3.81 -6.85 27.38 79.79 112.73 1.15



July 9.76 2.96 3.79 15.35 3.24August -4.33 -11.70 -11.98 6.71September -6.10 9.19 1.59 0.11October 5.97 8.71 1.02 -0.36November -5.64 7.98 10.07 1.40December 4.56 8.68 4.84 1.89January 0.54 7.41 5.64 3.05February -5.20 -1.86 -3.33 7.08March 7.66 -10.57 7.37 2.83April 2.37 13.79 3.46 2.07May 1.85 -1.15 0.81 11.39June 2.33 5.55 0.67 -0.64YTD 9.76 5.88 42.90 38.43 45.51Benchmark 5.95 15.53 20.10 29.89 54.41Difference 3.81 -9.65 22.80 8.54 -8.90 Asset allocation (%)


Jul-16 Jun-16Cement 24.13 26.34Oil & Gas Marketing Companies 15.12 15.62Automobile Assembler 12.45 16.14Textile Composite 7.67 8.21Fertilizer 6.53 6.78Others 18.25 20.41Total 84.15 93.49 Top holding (%age of total assets) Cherat Cement Co. Ltd. 11.50Nishat Mills Ltd. 7.67Pakistan State Oil Co. Ltd. 7.66Attock Petroleum Ltd. 7.46Engro Corporation Ltd. 6.53Kohat Cement Ltd. 6.47Indus Motor Co. Ltd. 6.37Thal Ltd. 6.21D. G. Khan Cement Co. Ltd. 6.15Pak Suzuki Motor Co. Ltd. 6.08 Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s (WWF) liability to the tune of Rs. 12,977,854, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 3.05 / 2.7%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged. Cumulative returns are based as per MUFAP stated methodology.


Beta 0.9 1.0Correlation 0.87 Largest Month Gain 15.4% 20.2%Standard Deviation 22.1% Largest Month Loss -28.7% -37.1%Expense Ratio* 0.28% % Positive Months 68.9% 65.8%


JS Fund of Funds (JS FoF) July 2016



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) 408.95NAV (PKR) 50.13Benchmark Average of asset allocation funds returnsManagement fee 1.00% (Exclusive of SST & FED)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 PSXLeverage NILManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Khawar Iqbal - Chief Financial OfficerMr. AAH Soomro, CFA, FRM - Fund ManagerMr. Yousuf Muhammad Farooq - Head of Research




* Average Annualized Return since inception as per Morning Star formula Monthly performance (%)

FY17 FY16 FY15 FY14 FY13July 1.09 2.66 4.88 13.60 0.36August -2.28 -7.37 -8.62 3.11September -6.25 3.52 6.78 -0.38October 5.78 2.93 -0.05 1.52November -2.97 4.47 7.87 3.20December 3.78 5.34 4.63 1.07January -1.11 5.35 3.32 2.31February -3.30 -0.95 -2.52 4.35March 6.21 -7.01 5.38 1.20April 3.63 10.03 4.43 2.59May 3.71 -1.97 1.77 11.12June -0.24 1.01 -0.67 -10.01YTD 1.09 9.08 20.44 40.09 21.01Benchmark 4.06 3.98 21.16 19.79 26.91Difference -2.97 5.10 -0.72 20.30 -5.90 Asset allocation (%)

Jul-16 Jun-16Open-end 82.39 - Close-end - - T Bills - - Cash 17.41 99.58 Other including receivables 0.19 0.42 Total 100.00 100.00 Top holding (%age of total assets) Atlas Gold Fund 18.96JS Large Cap. Fund 17.83JS Value Fund 17.73UBL Stock Advantage Fund 10.05Alfalah GHP Alpha Fund 9.98NAFA Stock Fund 7.84

Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s (WWF) liability to the tune of Rs. 11,932,101, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 1.46 / 2.9%. For details investors are advised to read the Note 9.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged. Cumulative returns are based as per MUFAP stated methodology.



* For the month of July 2016

JS Cash Fund (JS CF) July 2016



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) 578.66NAV (PKR) 103.01Benchmark BM CF1

Management fee 0.50% (Exclusive of SST & FED)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 PSXFund stability rating (JCR-VIS) AA+ (f)Leverage NILManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Khawar Iqbal - Chief Financial OfficerMr. Umair Ahmed Khan - Fund ManagerMr. Yousuf Muhammad Farooq - Head of Research Fund manager's review

JS Cash Fund reported an annualized return of 5.51% for the month of July, 2016 as compared to the annualized benchmark return of 4.93%, outperforming by 59 basis points.

During the month, fund placed funds in daily product at comparable higher rates, with benign inflation we will reallocate funds towards TBills and rebalance the portfolio as per the market developments and continue to negotiate for better bank placement rates.

Performance (%) Annualized performance2 1M 1Y 3Y 5Y Launch

Fund 5.51 5.69 8.28 10.30 11.93Benchmark 4.93 5.64 8.03 9.72 11.03Difference 0.59 0.05 0.24 0.58 0.90 Monthly performance (%) Annualized performance2

FY17 FY16 FY15 FY14 FY13July 5.51 5.87 8.62 7.28 10.42August 5.72 8.69 7.24 13.78September 6.94 8.68 5.83 8.35October 5.66 9.05 7.27 9.77November 4.54 9.34 7.65 7.65December 5.61 8.33 8.04 7.97January 5.70 10.03 8.06 7.72February 5.47 7.62 8.17 7.10March 5.54 7.17 8.86 7.79April 5.35 8.93 8.88 8.29May 5.38 6.65 8.91 8.17June 4.95 14.10 8.84 7.70YTD 5.51 5.71 9.30 8.21 9.11Benchmark 4.93 5.74 8.20 8.73 8.98Difference 0.59 -0.03 1.10 -0.52 0.13 Asset allocation (%)

Jul-16 Jun-16Cash 58.06 99.57 Placement with Banks and DFIs - - T Bills 41.40 - Other including receivables 0.55 0.43 Total 100.00 100.00 Asset quality (%age of total assets)

AAA41.41%

AA57.87%

AA+0.01%

A+0.16%

AA-0.00%

* Govt. securities (41.40%)

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 (WWF) liability to the tune of Rs. 3,441,484, if the same were not made the NAV per unit/return of the Scheme would be higher by Re. 0.61 / 0.6%. For details investors are advised to read the Note 9.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged.

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. Annualized return is based as per MUFAP stated methodology.

Statistical analysis Fund BM Fund BM

Standard Deviation 0.7% 0.5% Largest Month Gain 1.2% 0.9%Expense Ratio* 0.08% Largest Month Loss 0.0% 0.0%Duration (Days) 72 % Positive Months 100.0% 100.0%WAM (Days) 72


JS Income Fund (JS IF) July 2016



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 maintain 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) 796.66NAV (PKR) 96.81Benchmark 40% 1Year PKRV Rate + 60% 6M KIBORManagement fee 0.75% (Exclusive of SST & FED)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 Grant Thorton Anjum Rahman & CoRisk profile Low To MediumListing PSXFund stability rating (PACRA) A+ (f)Leverage NILManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Khawar Iqbal - Chief Financial OfficerMr Asim Ilyas - Fund ManagerMr. Yousuf Muhammad Farooq - Head of Research Fund manager's review For the month of July, 2016, JSIF yielded an annualized return of 13.78% as compared to the benchmark of 5.97%, outperforming by massive 781 basis points, mainly attributable from development of Agritech limited in terms of creditors’ agreement in restructuring the entire debt of the company. During the month, fund increased exposure towards Tbills to enhance fund’s return by capturing the rally with benign inflation outlook and positive macroeconomic outlook and reduced exposure towards TFCs and spread transactions to reallocate into bank placements at better rates. Going forward, with benign inflation we will reallocate funds towards PIBs as well as TBills and rebalance the portfolio as per the market developments. Non Compliant Investments under Circular 07/2009 Name ofInvestment Type Value before

provisionProvision held

(if any)Value after provision

% of Net Assets

% of Gross Assets

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 - - - - - 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.

Performance (%) Annualized performance1 1M 1Y 3Y 5Y Launch

Fund 13.78 6.55 9.21 11.74 14.22 Benchmark 5.97 6.62 9.45 11.90 15.98 Difference 7.81 (0.07) (0.24) (0.16) (1.76) Monthly performance (%) Annualized performance1

FY17 FY16 FY15 FY14 FY13July 13.78 11.50 7.44 4.86 11.24August 5.82 9.04 6.71 20.78September 3.69 9.55 -0.15 11.71October 3.31 8.90 5.81 11.72November 5.95 14.85 12.33 5.78December 6.58 20.84 7.77 23.72January 3.76 16.64 10.36 6.49February 9.81 7.55 7.29 -0.85March 6.23 5.65 12.38 7.00April 0.86 17.17 13.93 8.69May 11.44 2.59 -0.41 7.67June 4.86 1.75 8.34 6.40YTD 13.78 6.33 10.65 7.67 10.60Benchmark 5.97 6.70 9.35 10.30 10.38Difference 7.81 -0.37 1.30 -2.63 0.22 Asset allocation (%)

Jul-16 Jun-16Cash 40.21 64.29 Placement with Banks and DFIs - - Equity* 1.76 1.00 T Bills 29.39 - PIBs 0.52 0.50 TFCs / Sukkuks 7.49 16.16 MTS / Spread Transactions 1.17 14.72 Other including receivables 19.46 3.31 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-31.83%

A+6.23%

AA-1.64%

AA0.36%

AAA*29.91%

AA+0.14% * Govt. securities (0.52%)

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 (WWF) liability to the tune of Rs. 1,693,409, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 0.21 / 0.2%. For details investors are advised to read the Note 9.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged. 1 Annualized performance return is based as per MUFAP stated methodology.


Standard Deviation 4.4% 1.0% Largest Month Gain 3.7% 1.2%Expense Ratio 0.14% Largest Month Loss -10.3% 0.0%Duration (Yr) 0.30 % Positive Months 92.3% 100.0%WAM (Yr) 0.46

* For the month of July 2016

JS Islamic Government Securities Fund (JS IGSF) July 2016


nInvestment 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) 220.36NAV (PKR) 100.87Benchmark BM IGSF1

Management fee 0.75% (Exclusive of SST & FED)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 PSXFund stability rating (PACRA) AA- (f)Leverage NILManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Khawar Iqbal - Chief Financial OfficerMr. Umair Ahmed Khan - Fund ManagerMr. Yousuf Muhammad Farooq - Head of Research Fund manager's review

The fund recorded annualized return of 4.22% for the month of July, 2016 as compared to the benchmark return of 4.29% an underperformance of 7 bps.

During the month, fund manager maintained exposure into floater rental Ijara Sukuk while higher exposure was maintained in Fixed Rental Ijara Sukuk. Furthermore, the remaining fund placed in banks at relatively better rate. Additionally we strive to generate positive returns from trading strategy according to the expected direction of the GOP Ijara sukuks market.

Performance (%) Annualized performance2 1M 6M 1Y 2Y Launch

Fund 4.22 4.99 3.64 5.13 6.56Benchmark 4.29 4.68 5.35 13.26 7.23Difference -0.07 0.31 -1.71 -8.12 -0.67 Monthly performance (%) Annualized performance2

FY17 FY16 FY15 FY14 FY13July 4.22 4.58 2.42 6.83 n/aAugust 3.98 3.13 6.91 n/aSeptember -0.12 4.26 7.88 n/aOctober 2.33 6.45 6.81 n/aNovember 1.56 5.54 12.54 n/aDecember 6.75 5.80 9.47 n/aJanuary -1.27 12.25 6.55 n/aFebruary 3.34 5.95 11.28 n/aMarch 7.50 8.08 13.07 n/aApril 4.03 7.13 6.10 n/aMay 6.06 7.42 10.17 n/aJune 4.33 4.05 4.19 6.03YTD 4.22 3.66 6.22 8.80 6.03Benchmark 4.29 5.49 7.62 7.16 6.70Difference -0.07 -1.83 -1.41 1.64 -0.67 Asset allocation (%age of total assets)

Jul-16 Jun-16Cash 28.26 20.20Placement with Banks and DFIs - - TFCs / Sukkuks* 69.17 78.23Other including receivables 2.57 1.57Total 100.00 100.00

* As % of net assets July 2016 Sukkuks allocation is 73.41%. Asset quality (%age of total assets)

AAA69.17%

A+19.13%

AA-2.37%

AA0.01%

AA+6.76%

* Govt. securities (69.17)%)

Sukuks allocation - Top Ten Holding

69.17%

0.0%

25.0%

50.0%

75.0%

100.0%

125.0%

GoP Ijara Sukkuks

Disclosure for WWF Liability under Circular 17 of 2012

The Scheme has maintained provisions against Worker's Welfare Fund’s (WWF) liability to the tune of Rs. 981,093, if the same were not made the NAV per unit/return of the Scheme would be higher by Re. 0.45 / 0.4%. For details investors are advised to read the Note 10.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged.

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 return is based as per MUFAP stated methodology.


Standard Deviation 1.0% 0.4% Largest Month Gain 1.1% 0.7%Expense Ratio 0.21% Largest Month Loss -0.1% 0.0%Duration (Yr) 0.24 % Positive Months 94.9% 100.0%WAM (Yr) 1.73


JS Capital Protected Fund V (JSCPF_V) July 2016



JS Capital Protected Fund V aims at protecting investor capital through the Investment structure by placing a significant percentage of the Fund’s Deposited Property as term deposit(s) with a Scheduled Commercial Bank(s), having a long term rating of “AA” with a positive outlook (Capital Protection Portion). Key information Fund type Open endCategory Capital Protected SchemeFund launch date 30 May, 2016Net Assets (PKR mn) 298.93NAV (PKR) 99.82Benchmark BM1

Management fee 1.00% (Exclusive of SST & FED)Front-end Load 1.00%Back-end Load NILContingent Load Up to 2.0% of NAV during the first 12 months and three weeks

Up to 1.0% of NAV during the last 12 months and three weeksPricing mechanism Forward Trustee MCB Financial Services LimitedDealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor Grant Thornton Anjum Rahman Chartered AccountantsRisk profile Very LowListing PSXLeverage NILCapital Protection Rating CP2+ (CP Two plus) by PACRAManagement Quality Rating AM2 by JCR-VISInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Khawar Iqbal - Chief Financial OfficerMr. AAH Soomro, CFA, FRM - Fund ManagerMr. Yousuf Muhammad Farooq - Head of Research Fund manager's review Seems like the equity investors had fasted for too long away from the market and thus, came back strongly to propel the index upwards after the extended holidays. The month of July showed how the market would appear once the glorified status of MSCI Emerging Market is crowned upon. Coupling that with sustained - and often repeated "consumerism" - in Pakistan, the investors geared up for an extended final leg of the rally towards the eventual destination of an Emerging Market. Taking a proxy for solid platform being laid by resilient economic growth, investors kept betting upon Banking, Cement, Autos and Textile sector. A foreign net inflow of $23.3Mn is just a beginning towards the re-rating of a newer Pakistan we anticipated last year. Investors, local and global, have kept their sight on improving Car sales, Cement Sales, Oil sales, machinery import, Power projects, Infrastructure, Foreign exchange reserves and other indicators chalking the growth trajectory within the country. Industrialists, as well as foreign manufacturers, are putting more money on the table (Pakistan's economy) as evident by investment pouring in from China in Power, Infrastructure, Oil pipeline, Railways, etc and by current majority stake acquired by Royal Friesland Campina (RFC) in Engro Foods worth $447mn. Current motorway projects and fast-track LNG power plants of 3600MW are likely to further rejuvenate the investors’ confidence in the economy and may lead to a fresh wave of industrialism in Pakistan. Your Fund Manager keeps a combination of value and growth stocks, with a tilt towards the later. We believe the growth oriented storied, such as, Thal Limited, General Tyre, Indus Motors, Pak Suzuki, AgriAutos, Nishat Mills, Synthetic Products, Century Paper, Cherat Cement, DG Khan Cement, Amreli Steels, Pakistan State Oil, Attock Petroleum, Attock Refinery etc would be the key out-performers in the Fiscal Year. Simultaneously, we see a comfortable risk-adjusted return of 15-20% per annum stemming from Banking sector which offers a very handsome 6-7% dividend yield at current prices. The recent crackdown on the property market's revaluation of declared amount, in addition to the Capital Gain tax, would lure investors towards the Equity Markets. We are comfortable, confident and careful in our approach towards investment decision making and would advise you to do the same.

Performance (%) 1M 6M 1Y 2Y Launch Avg. Ann.*

Fund -0.20 n/a n/a n/a -0.10 -0.59Benchmark 0.98 n/a n/a n/a 1.93 11.91Difference -1.18 n/a n/a n/a -2.03 -12.50

* Average Annualized Return since inception as per Morning Star formula Monthly performance (%)

FY17 FY16July -0.20 n/aAugust n/aSeptember n/aOctober n/aNovember n/aDecember n/aJanuary n/aFebruary n/aMarch n/aApril n/aMay n/aJune 0.10YTD -0.20 0.10Benchmark 0.98 0.94 Asset allocation (%)

Jul-16 Jun-16Cash 0.38 8.54Equity 7.56 0.00TDR 90.74 90.82Other including receivables 1.32 0.64Total 100.00 100.00 Equity sector breakdown (%)

Jul-16 Jun-16Oil & Gas Exploration Companies 4.63 0.00Commercial Banks 2.93 0.00

Total 7.56 0.00 Top holding (%age of total assets) Pakistan Oilfields Ltd. 4.63MCB Bank Ltd. 2.93

1 The benchmark of the Fund for any period of return shall be the “Weighted

Average Daily Return of KSE-100 Index and Three (3) Months Deposit Rate of a Double A minus (AA-) or above rated Bank based on the Fund’s actual Proportion in the Investment and Capital Protection Portions”.

Statistical analysis

Fund Fund BMStandard Deviation 0.5% Beta -0.1 1.0Expense Ratio* 0.17% Largest Month Gain 0.1% 1.0%

Largest Month Loss -0.2% 0.0%% Positive Months 66.7% 100.0%


JS Pension Savings Fund (JS PSF) July 2016



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 SST & FED)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 PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Khawar Iqbal - Chief Financial OfficerMr. Umair Ahmed Khan - Fund ManagerMr. Yousuf Muhammad Farooq - Head of Research

Net Assets (PKR mn)JS-PSF - Equity Sub Fund 158.38JS-PSF - Debt Sub Fund 143.87JS-PSF - MM Sub Fund 111.67

NAV (PKR)JS-PSF - Equity Sub Fund 420.72JS-PSF - Debt Sub Fund 219.93JS-PSF - MM Sub Fund 178.50

Fund manager's review The Debt and Money Market Sub Fund recorded return of 7.38% p.a. and 10.72% p.a. respectively for the month of July, 2016, fund maintained exposure in Tbills. Going forward we will maintain investment in Treasury Bill in Money Market Sub Fund while regain exposure towards PIBs in Debt Sub Fund conditioned to economic and inflation outlook. The month of July saw the bullish momentum continue at the bourse with the KSE100 index once again closing at all time highs though with some volatility as the post Brexit international markets remained lackluster while international oil prices witnessed bearish cycle throughout the month under review on the back of more than expected inventory levels of US and concerns over China’s economic slowdown. The KSE30 index went up by 5.03%MoM in July-16 as key index movers were large cap stocks on the development of Pakistan being promoted to MSCI Emerging market continued to attract both local and foreign investors’ interest while during the outgoing month FIPI stood at USD 23 mn relative to USD 74 mn last month. Double digit growth in private sector credit off take during the CY16 to date shows effectiveness of expansionary monetary policy. With completeness of IMF programme, current regime will have more cushion to follow more economic growth oriented measures that will result better performance for equities in the near to medium term. Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s (WWF) liability to the tune of Rs. 4,587,149, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 5.89 (ESF), Rs. 2.16 (DSF), Rs. 1.53 (MMF) / 1.4% (ESF), 1.0% (DSF), 0.9% (MMF). For details investors are advised to read the Note 6.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged. 1 Annualized performance return is based as per MUFAP stated methodology.

Performance (%) 1M 1Y 3Y 5Y Launch

Equity Sub Fund 3.67 4.17 91.45 351.66 320.76Debt Sub Fund 1 7.38 5.36 24.67 50.43 119.95MM Sub Fund 1 10.72 4.37 19.33 46.44 78.51

Monthly performance (%) Annualized performance1

Equity Debt 1 MM 1

FY17 FY16 FY17 FY16 FY17 FY16July 3.67 2.86 7.38 6.81 10.72 7.76August -0.49 8.91 3.44September -5.79 4.57 3.19October 5.99 4.74 3.15November -5.25 3.16 4.37December 3.21 3.93 4.76January -0.08 4.47 2.44February -4.95 5.41 4.12March 4.27 4.82 3.77April 2.38 0.45 3.61May 2.22 10.69 5.02June -0.21 3.80 2.62YTD 3.67 3.35 7.38 5.29 10.72 4.10

Asset allocation (%) Equity Jul-16 Jun-16Cash 10.95 11.05 Equity 84.91 87.99 Other including receivables 4.14 0.96 Total 100.00 100.00 Debt Jul-16 Jun-16Cash 6.57 6.14 Equity* 0.24 0.15 TFCs / Sukkuks 3.59 3.34 T Bills & PIBs 89.40 90.21 Other including receivables 0.20 0.16 Total 100.00 100.00 Money Market Jul-16 Jun-16Cash 4.98 3.63 Placement with Banks - - Equity* 1.54 0.97 T Bills 93.38 93.56 Other including receivables 0.11 1.84 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 (%)

Jul-16 Jun-16Automobile Assembler 11.86 11.98 Pharmaceuticals 10.52 9.98 Oil & Gas Exploration Companies 9.36 10.57 Cement 7.83 7.23 Commercial Banks 5.84 0.03 Others 39.50 48.20 Total 84.91 87.99

Top holding (%age of total assets) Pak Suzuki Motor Co. Ltd. 6.81 Abbott Laboratories Pakistan Ltd. 5.97 Engro Corporation Ltd. 5.06 HinoPak Motors Ltd. 5.05 Ghani Glass Ltd. 4.98 Thal Ltd. 4.90 Oil & Gas Development Co. Ltd. 4.89 Pakistan State Oil Co. Ltd. 4.76 Century Paper & Board Mills Ltd. 4.75 Adamjee Insurance Co. Ltd. 4.60

VPS

-SH

AR

IAH

C

OM

PLIA

NT

FUN

D JS Islamic Pension Savings Fund (JS IPSF) July 2016



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 SST & FED)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 PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Khawar Iqbal - Chief Financial OfficerMr. Suleman Rafiq Maniya - Fund ManagerMr. Yousuf Muhammad Farooq - Head of Research

Net Assets (PKR mn)JS-IPSF - Equity Sub Fund 130.39JS-IPSF - Debt Sub Fund 63.27JS-IPSF - MM Sub Fund 54.08

NAV (PKR)JS-IPSF - Equity Sub Fund 600.69JS-IPSF - Debt Sub Fund 188.28JS-IPSF - MM Sub Fund 163.67

Fund manager's review In the month of July, 2016, JS Islamic Pension Savings Debt Sub Fund and Money Market Sub Fund delivered returns of 8.31% annualized and 2.96% annualized respectively. During the month, allocation of government Ijara Sukuk has maintained exposure in IPSFDSF and IPSMMSF. Fund witnessed gains mainly from lowering of fixed rental rate Sukuks yields. The month of July saw the bullish momentum continue at the bourse with the KSE100 index once again closing at all time highs though with some volatility as the post Brexit international markets remained lackluster while international oil prices witnessed bearish cycle throughout the month under review on the back of more than expected inventory levels of US and concerns over China’s economic slowdown. The KSE30 index went up by 5.03%MoM in July-16 as key index movers were large cap stocks on the development of Pakistan being promoted to MSCI Emerging market continued to attract both local and foreign investors’ interest while during the outgoing month FIPI stood at USD 23 mn relative to USD 74 mn last month. Double digit growth in private sector credit off take during the CY16 to date shows effectiveness of expansionary monetary policy. With completeness of IMF programme, current regime will have more cushion to follow more economic growth oriented measures that will result better performance for equities in the near to medium term.

Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s (WWF) liability to the tune of Rs. 2,977,965, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 9.80(ESF), Rs. 1.42 (DSF), Rs. 1.13 (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. However, from July 01, 2015 WWF is not being charged. 1 Annualized performance return is based as per MUFAP stated methodology.

Performance (%) 1M 1Y 3Y 5Y Launch

Equity Sub Fund 4.52 7.57 91.31 284.63 498.21Debt Sub Fund 1 8.31 4.06 15.40 36.80 87.49MM Sub Fund 1 2.96 2.22 14.63 33.76 62.99 Monthly performance (%) Annualized performance1

Equity Debt 1 MM 1

FY17 FY16 FY17 FY16 FY17 FY16July 4.52 1.17 8.31 6.74 2.96 5.24August -1.58 5.08 4.85September -6.20 2.54 0.23October 6.14 2.59 2.49November -4.74 1.40 0.45December 3.41 7.28 5.33January 1.24 -1.35 0.07February -5.26 -0.89 -0.85March 3.61 8.66 3.42April 3.41 4.02 2.25May 2.94 5.90 3.55June 0.80 3.79 1.19YTD 4.52 4.13 8.31 3.91 2.96 2.41 Asset allocation (%) Equity Jul-16 Jun-16Cash 13.69 8.13 Equity 86.14 91.72 Other including receivables 0.17 0.14 Total 100.00 100.00 Debt Jul-16 Jun-16Cash 11.60 10.30 IJARA Sukuk Bond 86.72 88.48 Other including receivables 1.69 1.22 Total 100.00 100.00 Money Market Jul-16 Jun-16Cash 64.23 64.02 IJARA Sukuk Bond 34.85 35.35 TDR - - Other including receivables 0.92 0.63 Total 100.00 100.00 Equity sector breakdown (%)

Jul-16 Jun-16Automobile Assembler 11.21 12.31 Pharmaceuticals 9.29 9.44 Oil & Gas Exploration Companies 8.78 7.63 Cement 8.69 11.39 Automobile Parts & Accessories 8.17 7.86 Others 39.99 43.09 Total 86.14 91.72 Top holding (%age of total assets) Agriautos Industries Ltd. 8.17 Synthetic Products Enterprises Ltd. 7.46 Abbott Laboratories Pakistan Ltd. 7.12 Engro Corporation Ltd. 6.75 Pak Suzuki Motor Co. Ltd. 6.22 Rafhan Maize Products Ltd. 5.46 Thal Ltd. 5.32 Nishat Mills Ltd. 5.15 HinoPak Motors Ltd. 5.00 Ghani Glass Ltd. 4.79

market review - js investments · market review july 2016 economy monthly yoy inflation cpi for the...

Documents