notes to the financial statements 17 - js investments ... · ... as financial institutions...

Vision and Mission Statement 02

Organization 03

Directors' Report to the Participants 04

Trustee Report to the participants 08

Independent Auditors' Report to the Participants 09

Statement of Assets and Liabilities 12

Income Statement 13

Statement of Comprehensive Income 14

Statement of Cash Flows 15

Statement of Movement in Participants' Fund 16

Notes to the Financial Statements 17

Annual Report 2015 01

JS Pension Savings Fund

CONTENTS

Annual Report 201502


VISIONTo be recognized as a responsible asset manager respected for continuinglyrealizing goals of its investors.

MISSIONTo build JS Investments into a top ranking Asset Management Company;founded on sound values; powered by refined knowhow; supported bya committed team operating within an accountable framework of social,ethical and corporate responsibility - a strong and reliable institution forits shareholders to own; an efficient service provider and value creator forclients; an exciting and fulfilling work place for employees; and a participantworth reckoning for competitors.

BROAD POLICY OBJECTIVES

Value creation for clients on a sustainable basisMaintain h igh standards of ethical behaviors an d fiduciaryresponsibilityManage Investments with Prudence and with the aim of providingconsistent returns better than that of peersTake Products and Services to the People, Create awareness onunderstanding financial goals, risks and rewardsProfessional Excellence - Adapt, Evolve and Continuously ImproveMaintain highly effective controls through strong compliance andrisk managementA talented, diligent and diverse HR

Management Company JS Investments Limited7th Floor, The Forum, G-20Khayaban-e-Jami, Block-9, CliftonKarachi-75600Tel: (92-21) 111-222-626Fax: (92-21) 35361724E-mail: [email protected]: www.jsil.com

Board of Directors Nazar Mohammad Shaikh ChairmanAli Akhtar Ali Chief Executive OfficerSuleman LalaniAsif Reza SanaAhsen AhmedKamran JafarMuhammad Khalil ur RehmanMuhammad Raza Dyer

Audit Committee Asif Raza Sana ChairmanMuhammad Khalil Ur Rehman MemberSuleman Lalani Member

Chief Financial Officer& Company Secretary Muhammad Khawar Iqbal

TrusteeMCB Financial Services Ltd.3rd Floor, Adamjee HouseI.I.Chundrigar Road,Karachi - 75530Tel: (92-21) 32419770Fax: (92-21) 32416371

Auditors A.F Ferguson & Co.Chartered Accountants

Legal Advisers Bawaney & Partners3rd & 4th Floors, 68-C,Lane-13 Bokhari CommercialArea Phase-VII DHA, Karachi.

Transfer Agent Technology Trade (Private) LimitedPhase-VII241-C, Block 2, P.E.C.H.S, KarachiTel: (92-21) 34391316-7Fax: (92-21) 34391318

ORGANIZATION



mailto:[email protected]

http://www.jsil.com

DIRECTORS' REPORT TO THE UNITHOLDERS

The Board of Directors of JS Investments Limited, the Pension Fund Manager of JS Pension Savings Fund (the Fund), is pleasedto present the Annual Report for the year ended June 30, 2015.

Equity Market Review

The KSE-30 Index posted a return of 5.70% in FY15, as the gains moderated this year after very strong performance by the indexover the last few years. 4QFY15 performance of the KSE30 index was quite strong with the index up by 12.00% QoQ as the prebudget rally along with improving macros helped build sentiment. Foreign inflows in FY15 tapered off to an inflow of US 38.00million against an inflow of US 256.00 mil lion in the same period last year. Average dai ly volumes for the KSE-30 Index slightlywent down by 6.80% YoY to 73.4 mi llion shares from an average of 78.80 mi llion shares in FY14, du e to lower participationin companies on the KSE30 index which are primari ly weighted towards the banking and the oil sec tors.

In 4QFY14, the KSE-30 posted a return of 12.20% on account of strong foreign flows and strong local retail and insti tutionalparticipation. The index had already taken a correction in t he previous quar ter. Foreign inflows for 4QFY14 were recorded atUS 57.00 mill ion, against an inflow of US 233.00 million in the same period last year.

In addition, secondary market offering for HBL garnered substantial interest where GoP divested around 609.00 mil lion sharesto local and foreign institutional and retai l investors with strong foreign participation. US 764.00 million were raised from foreigninvestor's participation in HBL, one of the highest sums raised in a secondary offering in recent times which established stronginterest in the local equity market from international investors.

Money Market Review

During FY15, the SBP cut the discount rate to 7.00% from 10.00% in 4 monetary pol icy announcements. Towards the end ofFY15, the Government of Pakistan (GoP) had reallocated its debt term structure towards the longer dated Pakistan InvestmentBonds (PIB) as financial institutions aggressively participated in PIB auctions. With benign outlook on inflation, banks participationtowards longer tenure security was evident. In the last T-bill auction, the c ut off yieldfor 3 month, 6 month and 12 month T-bill averaged at 6.86%, 6.93% and 6.97% respectively.

The average 3M,6M and 12M K IBOR declined by 77bps, 81bps and 87bps respectively durin g FY15 period averagingat 9.00%, 9.01% and 9.29% respec tively, as against 9.77%, 9.82% and 10.16% in the same period last year.

During 4QFY15, the SBP cut its discount rate to 7.00% from 7.50%. Towards the end of FY15, the Government ofPakistan (GoP)re-profiled its debt structure, as mentioned earl ier, into longer term Pakistan Investment Bonds (PIB) and financial institutionsaggressively participated in PIB auctions where the government raised Rs. 154.00 bi llion against the target amount of Rs. 150.00bi llion.

The average 3M, 6M and 12M KIBOR decreased by 289bps, 289bps and 288bps YoY respectively during the 4QFY14 periodaveraging at 7.28%, 7.28% and 7.57% respectively, as again st 10.17%, 10.17% and 10.45% during the same period last year.

Review of Fund Performance

The fund was launched on June 26, 2007 for contributions by eligible participants, under the Voluntary Pension System Rules,2005 (VPS Rules, 2005), with the objective of assisting and faci litating them to plan for their retirement. The Fund presently hasthree sub-funds that are Equity Sub-Fund, Debt Sub-Fund, and Money Market Sub-Fund. Profit for the year ended June 30, 2015of each of the sub funds and the net assets as on June 30, 2015 are provided below:-



Name Equity Sub-Fund Money Market Sub-Fund

Profit for the year (Rs .in million)

Net assets (Rs. in million)

NAV per unit (Rupees)

NAV appreciation during the period

28.77

154.37

392.66

22.91%

Debt Sub-Fund

16.74

172.95

207.55

10.75%

7.83

127.75

169.90

6.69%

The Fund has 391 participants as on June 30, 2015.



a. The Finance Act, 2008 introduced an amendment to the Workers' Welfare Fund Ordinance, 1971 (WWF Ordinance).As a result of this amendment i t i s alleged that all Collective Investment Schemes / mutual funds (CISs) whoseincome exceeds Rs.0.5 mil lion in a tax year, have been brought within the scope of the WWF Ordinance, thusrendering them liable to pay contribution to WWF at the rate of t wo percent of th eir accounting or taxableincome, whichever is higher. In this regard, a consti tutional petition has been filed by certain CISs through theirtrustees in the Honorable High Court of Sindh, challenging the applicability of WWF to the CISs, which is pendingadjudication.

In August 2011, the Honorable Lahore High Court (LHC), in a Constitutional Petition relating to the amendmentsbrought in the WWF Ordinance, 1971 through the Finance Act, 2006, and the Finance Act, 2008, has declaredthe said amendments as unlawful and unconsti tutional and struck them down. In March 2013, a larger bench of the Honorable High Court of Sin dh (SHC) has passed an order declaring that the amendments introducedin the WWF Ordinance through Finance Acts, 2006 and 2008 respectively do not suffer from any constitutionalor legal infirmity. However, as mentioned above, the constitutional petition challenging the applicability of WWFon mutual funds is still pending adjudication and not yet decided. The Management Company has consideredthe implications of the above judgment of SHC and is of the view that the matter will eventually be settled inits favor and WWF will not be levied on the Fund.

Further, in May 2014, the Honourable Peshawar High Court (PHC) held that the impugned levy of contributionintroduced in the Ordinance through Finance Acts, 1996 and 2009 lacks the essential mandate to be introducedand passed through a Money Bill under the constitution and, hence, the amendments made through the FinanceActs are declared as 'Ultra Vi res'.

As the matter relating to levy of WWF is currently pending in the court, the Management Company, as a matterof prudence and abundant caution, has decided to recognise the enti re l iabil ity of Rs. 4.59 mill ion (June 30,2014: Rs. 3.49 million) in these financial statements.

b. As per the requirements of the Finance Ac t 2013, Federal Excise Duty (FED) at the rate of 16% on the servicesof the Management Company has been applied effective June 13, 2013. The Management Company is of theview that since the remuneration is already subjec t to provincial sales tax, further levy of FED results in doubletaxat ion and does not appear to be the spirit of the law. The matter h as been col lec tively taken up by theManagement Company jointly with other Asset Management Companies and their respective trustees on behalf

Benef its of investing in JS Pension Savings Fund

JS Pension Savings Fund provides following benefits to its participants:-Exper t advice in planning his/her retirement.The Participant are entitled to tax credit (20% of taxable income and additional catch-up incentives are provided to participants over 40 years, with a maximum tax credit on 50% of taxable income under Section 63 of the Income Tax Ordinance 2001 ) on his/ her contribution.Tax free return on investments.Contribution frequency of participants' choice.Minimum investment of only Rs.12,000/- p.a.Option to withdraw funds at any time, subject to tax and zakat deduc tions.

Asset Manager Rating

JCR-VIS Credit Rating Company Limited has reaffirmed Management Quality Rating of "AM2-"(AM-Two Minus) to JS InvestmentsLimited through a press release dated August 20th, 2013. The rating denotes high management quali ty of the ManagementCompany.

Compliance

The Board of Directors of the Pension Fund Manager states that:



of schemes through a constitutional petition filed in the Honourable Sindh High Cour t (SHC) in September 2013which is pending adjudication. However, the SHC has issued a stay order against the recover y of FED. The Fund,as a matter of prudence has made full provision of Rs. 1.67 million (2014 Rs. 0.68 million).

c. The financial statements, prepared by the Pension Fund Manager, present fairly the state of affairs of the Fund,the results of its operations, cash flows and movement in net assets of the Fund.

d. Proper books of accounts of the Fund have been maintained.

e. Appropriate accounting policies have been c onsistently appl ied in preparation of financial statements, andfinancial estimates are based on reasonable and prudent judgment.

f. International Fin ancial Repor ting Standards, as applicable in Pakistan , provisions of the Volun tary Pen sionSystems Rules, 2005, requirements of the Trust Deed and directives of the Securities and Exchange Commissionof Pakistan have been followed in preparation of the financial statements.

g. The system of internal control is sound in design and has been effectively implemented and monitored.

h. There are no significant doubts upon the Fund's ability to continue as a going concern.

i. A performance table / key financial data is annexed to this annual report.

j. The number of units of the Fund held by the Chief Executive, directors and executives and their spouses as atJune 30, 2015 are as follows:

Name Mr.Suleman Lalani Mr. Muhammad Khali l ur Rehman

Designation Director DirectorUnits heldEquity Sub Fund 5,118 1,799Debt Sub Fund 29,448 3,856Money Market sub Fund 12,033 2,945

a. Summary of units acquired / redeemed during the year by the Ch ief Executive, d irectors an d executives andtheir spouses are provided below:

Name Mr.Suleman Lalani Mr. Muhammad Khal il ur RehmanDesignation Director DirectorUnits Acquired Equity Sub Fund 569 1,799 Debt Sub Fund 7,040 3,856 Money Market sub Fund 3,219 2,945

Meetings of the Directors

During the year 6 meetings of the Board of Direc tors were held. The attendance of each director for these meetingsis as follows:-

Mr. Nazar Moh ammad Shaikh

Mr. Ali Akhtar AliMr. Suleman LalaniMr. Asif Reza Sana

Mr. Kamran JafarMr. Muhammad Khalil ur RehmanMr.Muhammad Raza Dyer

Mr. Ahsen Ahmed

Meeting Number / Date of Meeting



Ali Akhtar AliChief Executive OfficerKarachi: August 11, 2015

Auditors

The external auditors of the Fund Messrs. A.F. Ferguson & Co., Chartered Accountant, reti re and being eligible offers themselvesfor reappointment. The Board of Directors of JS Investments Limited, t he Manag ement Compan y of th e Fund, uponrecommendation of the Audit Committee, has approved the appointment of Messrs. A.F. Ferguson & Co., Chartered Accountantas the Fund's auditors for the ensuing year ending June 30, 2016.

AcknowledgmentThe Directors expresses their gratitude to the Securities and Exchange Commission of Pakistan for its valuable support, assistanceand guidance. The Board also thanks the employees of the Pension Fund Manager and the Trustee for their dedication and hardwork and the participants for their confidence in the Management.

TRUSTEE REPORT TO THE PARTICIPANTS

JS PENSION SAVINGS FUND

Report of the Trustee pursuant to Rule 31(h) of the Voluntary Pension System Rules, 2005

We, Central Depository Company of Pakistan Limited, being the Trustee of JS Pension Savings Fund (the Fund) are ofthe opinion that JS Investments Limited being th e Pension Fund Manager of the Fund has in al l mater ial respec tsman aged the Fu nd during the year ended June 30, 2015 in accordance with the provisions of the co nsti tutivedocuments of the Fund and the Voluntary Pension System Rules, 2005.

Muhammad Hanif JakhuraChief Executive Officer

Karachi, September 18, 2015 Central Depository Company of Pakistan Limited





INDEPENDENT AUDITORS' REPORT TO THE PARTICIPANTS OF THE PENSION FUND

We have audited the accompanying financial statements comprising:

i. Statement of Assets and Liabilities;ii. Income Statement;iii. Statement of Comprehensive Income;iv. Statement of Cash Flows; andV. Statement of Movement in Participants' Sub-Funds.

of JS Pension Savings Fund (the Fund) as at June 30, 2015 and a summary of significant accountingpolicies and other explanatory notes forming part thereof for the year then ended.

Pension Fund Manager's responsibility for the financial statementsThe Pension Fund Manager is responsible for the preparation and fair presentation of these financialstatements in accordance with approved accounting standards as applicable in Pakistan, and for suchinternal control as the Pension Fund Manager determines is necessary to enable the preparation of thefinancial statements that are free from material misstatement, whether due to fraud or error.

Auditor's responsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conductedour audit in accordance with the International Standards on Auditing as applicable in Pakistan. Thosestandards require that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance whether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements. The procedures selected depend on the auditors' judgement, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity'spreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectivenessof the entity's internal control. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of accounting estimates made by the Pension Fund Manager, aswell as evaluating the overall presentation of the financial statements. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion:a) the financial statements prepared for the year have been prepared in accordance with the relevant

provisions of the Trust Deed and the Voluntary Pension System Rules, 2005 including the guidelinesthere inder;

b) a true and fair view is given of the disposition of the Fund as at June 30, 2015 and of the transactionsof the Fund for the year ended June 30, 2015 in accordance with approved accounting standardsas applicable in Pakistan;

c) the allocation and reallocation of units of the sub-funds for all the participants have been madeaccording to the Voluntary Pension System Rules, 2005;



d) the cost and expenses debited to the Fund and apportionment of expenses between sub-fundsare as specified in the constitutive documents of the Fund;

e) proper books and records have been kept by the Pension Fund Manager and the financial statementsprepared are in agreement with the Fund's books and records;

f) we were able to obtain all the information and explanations which, to the best of our knowledgeand belief, were necessary for the purpose of the audit; and

g) zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980) was deductedby the Fund and is yet to be deposited in the Central Zakat Fund established under section 7 ofthat ordinance.

A.F. FERGUSON & CO.Chartered AccountantsNoman Abbas SheikhOctober 13, 2015

FINANCIALSTATEMENTS





For JS Investments Limited(Pension Fun d Manager)

Chief Executive Officer

Ali Akhtar AliDirector

Nazar Muhammad Shaikh

STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 30 JUNE 2015

Cash flows from operating activiti es Ne t in com e fo r t he y ear 28,77 3,30 5 1 6,744 ,279 7,8 35,7 46 53 ,353 ,330 36 ,3 83,5 24 6,14 5,189 8,00 3,820 50 ,532 ,5 33

A d just me nt s fo r:Ne t (g ain ) / lo ss o n sale of in vestm en ts (2 1,173 ,821 ) (5,5 11,4 42) (9 6,91 8) (26,7 82,18 1) ( 29,28 0,33 5) 3,90 1,867 837 ( 25,3 77,63 1)A m or ti za tio n o f disco un t o n inv estm en ts - (15,8 44,4 83) ( 10,42 9,81 0) (26,2 74,29 3) - (5 ,491 ,561) (9 ,628 ,724) ( 15,1 20,28 5)I mp air me nt loss on i nvest me nt s - availab le- for -sale - 102 ,195 5 10,9 74 613 ,169 - - -Di vide nd i ncom e ( 4,001 ,870 ) - - (4,0 01,87 0) (2,61 6,60 6) - - (2,6 16,60 6)P ro vision for Wo rke rs' We lfare Fun d 58 7,20 8 341 ,746 1 60,0 47 1 ,089 ,001 7 42,5 29 12 5,425 16 3,353 1 ,031 ,3 07Un re alized l oss / (g ain ) on inve st m ent in h eld for tr adin g secu rit ies - n et 19 6,55 9 318 ,721 (3 4,57 0) 480 ,710 ( 12,32 4,33 3) (78 ,662) 1 7,900 ( 12,3 85,09 5)E lem ent of (inco m e) / loss and cap ital ( gain ) / losses inclu de d i n p rices o f un its issued less th ose o f un its r ede em ed - net ( 7,401 ,789 ) 272 ,021 (4 7,95 6) (7,1 77,72 4) 5 ,1 35,7 00 2 9,643 ( 583 ,444) 4 ,581 ,8 99

( 3,020 ,408 ) (3,5 76,9 63) (2,10 2,48 7) (8,6 99,85 8) (1,95 9,52 1) 4,63 1,901 (2 ,026 ,258) 646 ,1 22( In cr ease ) / d ecr ea se in op er a tin g asset sP ro fit r eceiv able on ban k ba lance s an d in vest me nt s (74 ,298 ) 3,216 ,652 (1 9,33 5) 3 ,123 ,019 20,3 10 (3 ,129 ,441) 4 4,910 (3,0 64,22 1)R eceiv able again st t ran sactio ns in se cur ities - - - - 11 ,3 46,7 78 - - 11 ,346 ,7 78

(74 ,298 ) 3,216 ,652 (1 9,33 5) 3 ,123 ,019 11 ,3 67,0 88 (3 ,129 ,441) 4 4,910 8 ,282 ,5 57I ncr ea se / ( d ecr ease ) in op er a tin g liab il iti esR em un er atio n p ayab le to th e Pe nsion Fun d M an age r 51 8,22 3 683 ,027 4 97,0 26 1 ,698 ,276 1 27,9 56 18 5,169 11 9,314 432 ,4 39R em un er atio n p ayab le to th e Tru stee 6,05 4 2 ,400 8 64 9 ,318 3,9 68 5,738 2,411 12 ,1 17A n nu al fee paya ble t o t he S ecur iti es and Excha ng e Co m mission of Pakist an 76 3 762 7 64 2 ,289 27,3 32 2 7,334 2 7,332 81 ,9 98A u dit fee p ayab le 1 0,48 0 10 ,097 4,7 79 25 ,356 13,7 85 1 2,364 5,598 31 ,7 47A ccr ued exp en se s an d o th er liabil ities 1,37 4,58 8 59 ,461 39,3 83 1 ,473 ,432 5,9 12 (11 ,077) (5 ,884) ( 11,04 9)

1,91 0,10 8 755 ,747 5 42,8 16 3 ,208 ,671 1 78,9 53 21 9,528 14 8,771 547 ,2 52Di vide nd s r eceive d 3,34 9,83 0 - - 3 ,349 ,830 2 ,6 16,6 06 - - 2 ,616 ,6 06

2,16 5,23 2 395 ,436 (1,57 9,00 6) 981 ,662 12 ,2 03,1 26 1,72 1,988 (1 ,832 ,577) 12 ,092 ,5 37

S ale o f inve stm ent s 3 51,02 7,13 0 67 9,703 ,960 600,5 52,1 88 1,631 ,283 ,278 180 ,8 95,2 76 64 0,96 9,343 61 8,48 5,711 1,440 ,350 ,3 30P ur chase o f in vestm en ts (38 3,980 ,820 ) ( 675,2 98,9 08) (5 89,63 2,07 3) (1 ,6 48,9 11,80 1) (1 83,92 7,77 4) (685 ,928 ,117) (632 ,215 ,791) (1,5 02,0 71,68 2)

(3 2,953 ,690 ) 4,405 ,052 10,9 20,1 15 (17,6 28,52 3) (3,03 2,49 8) (44 ,958 ,774) (13 ,730 ,080) ( 61,7 21,35 2)C ash g en er at ed fr om / (u sed in) op er at in g a ct ivit ie s - n et (3 0,788 ,458 ) 4,800 ,488 9,3 41,1 09 (16,6 46,86 1) 9 ,1 70,6 28 (43 ,236 ,786) (15 ,562 ,657) ( 49,6 28,81 5)

C ash fl ow s f r om f ina n cing act iv it ies - n etC ash r eceiv ed o n issue of u nit s 13,27 9,86 6 3 2,002 ,288 26,6 91,7 55 71 ,973 ,909 14 ,5 16,3 85 5 5,18 5,484 3 4,44 2,937 104 ,144 ,8 06C ash p aid on red em pt ion of un its ( 1,456 ,307 ) (20,4 22,1 31) ( 18,61 6,52 2) (40,4 94,96 0) ( 17,0 94,66 0) (18 ,652 ,553) (19 ,582 ,440) ( 55,2 29,65 3)E ffec t of re -allo catio n 24,66 5,72 2 (14,3 65,5 30) ( 10,30 0,19 2) - (6,3 63,78 7) 6,55 9,586 ( 195 ,799) -C ash f low s f rom fi nan cing acti vitie s - net 36,48 9,28 1 (2,7 85,3 73) (2,22 4,95 9) 31 ,478 ,949 (8,94 2,06 2) 4 3,09 2,517 1 4,66 4,698 48 ,815 ,1 53

I ncr ea se / ( d ecr ease ) in cash an d ca sh e qu iv ale nt s du r in g t he yea r 5,70 0,82 3 2,015 ,115 7,1 16,1 50 14 ,832 ,088 2 28,5 66 ( 144 ,269) ( 897 ,959) (8 13,66 2)C ash a nd cash eq uiva lent s at t he b eg inn ing of the year 3,07 9,81 2 5,427 ,978 2,9 91,9 64 11 ,499 ,754 2 ,8 51,2 46 5,57 2,247 3,88 9,923 12 ,313 ,4 16C ash an d cash e q uiv ale nt s at th e e nd o f t he yea r 8,78 0,63 5 7,443 ,093 10,1 08,1 14 26 ,331 ,842 3 ,0 79,8 12 5,42 7,978 2,99 1,964 11 ,499 ,7 54

T he a nn exed not es fr om 1 t o 23 for m an in teg ral p ar t o f th ese fi nan cial stat em en ts.

------------------------------Ru pees------------------------------ ------------------------------Rupees------------------------------

E qu it ySu b-F un d

De btSu b-Fu nd

Mo ne yMark et

Sub-Fun d Tota lE qu it y

Su b-F un dDe bt

Su b-Fu nd

Mo neyMarke t

S ub-Fun d Tota l

2015 2014

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED JUNE 30, 2015

1 LEGAL STATUS AND NATURE OF BUSINESS

1.1 JS Pension Savings Fund ("the Fund") has been established under the Voluntary Pension System Rules, 2005 (VPS Rules)and has been approved as a pension fund by the Securities and Exchange Commission of Pakistan (SECP) on 14 June2007. It has been constituted under a Trust Deed, dated 6 June 2007, between JS Investments Limited as the PensionFund Manager, a company incorporated under the Companies Ordinance, 1984 and the Central Depository Companyof Pakistan Limited as the Trustee, also incorporated under the Companies Ordinance 1984 . The registered office of JSInvestments Limited is situated at 7th Floor, The Forum, G-20 Khayaban-e-Jami, Block - 9, Clifton, Karachi, Pakistan.

1.2 The Fund is an open end mutual fund and offers units for public subscription on a continuous basis. The units are non-transferable except in the circumstances mentioned in the Voluntar y Pension System Rules, 2005 and can be redeemedby surrendering them to the Fund. Further, as per the offering document, the Fund shall not distribute any income fromthe Fund whether in cash or otherwise.

1.3 The objective of the Fund is to provide a secure source of savings and retirement income to individuals. It is a portablepension scheme allowing individuals the flexibility of contributions and portfolio customization through allocation ofsuch contributions in equity and fixed income investment avenues suited to their specific needs and risk profile.

1.4 The Fund consists of three sub-funds namely, JS Pension Savings Fund Equity Sub-Fund ("Equity Sub-Fund"), JS PensionSavings Fund Debt Sub-Fund ("Debt Sub-Fund") and JS Pension Savings Fund Money Market Sub-Fund ("Money MarketSub-Fund") (collectively the "Sub-Funds"). The investment pol icy for each of the sub-funds are as fol lows:

- The Equit y Sub-Fund shall have an average minimum investment in listed shares of ninety percent (90%) of itsNet Asset Value(NAV ). Investment in equity securities of a single company shall not exceed 10% of the net assetsvalue of the Equity Sub Fund, provided that exposure in companies belonging to a single sector as classifiedby the Stock Exch ange shal l not exceed 30% o f the net assets of the Equ ity Sub Fund or the index weight,whichever is hig her, subject to maximum of 35% of the net assets of the Equity Sub Fund. Any un-investedsurplus may be invested in Government treasury bills or Government securities having less than one year timeto maturity.

- The Debt Sub-Fund shall invest atleast 25% of the net assets of the Debt Sub Fund in debt securi ties issued bythe Federal Government. The weighted average time to maturity of securities held in the portfolio of Debt SubFund shall not exceed 5 years. Exposure to securities issued by companies in a single sector shall not exc eed20% (30% in case of the banking sector) of the net assets of the debt sub fund.

- The weighted average time to maturity of net assets of the Money Market Sub-fund shall not exceed 90 days,provided that time to maturity of any asset in the portfolio of the Money Market Sub-fund shall not exceed 6months.

1.5 The Fund offers four types of allocation schemes, as prescribed by the SECP under VPS Rules 2005 vide its Circular no.36 of 2009 dated 10 December 2009, to the participants of the Fund namely High Volatility, Medium Volatili ty, LowVolatility and Lower Volatil ity. The par ticipant has the option to sug gest a minimum percentage of allocat ion to theabove allocation schemes (subject to the minimum percentages prescribed in the offering document). Based on theminimum al location, the funds are allocated to the above stated sub-funds. The allocation to the sub-funds has to bedone at the date of the opening of the participant 's pen sio n account and on an an niversary date thereafter. Thecont ribution amount may be paid by the participant on a periodic basis suc h as annual, semi annual, quarterly ormonthly basis within 5 days of the close of the period.

1.6 Title to the assets of the Fund is held in the name of Central Depositor y Company of Pakistan Limited as a Trustee ofthe Fund.





2 BASIS OF PREPARATION

2.1 Statement of compliance

Th ese financial statements have been prepared in accordance with the approved accounting standards as applicablein Pakistan. The approved accounting standards comprise of such International Financ ial Reporting Standards (IFRSs)issued by the International Accounting Standards Board (IASB) as are notified under the Companies Ordinance, 1984,the requirements of the Trust Deed, the Voluntary Pension System Rules, 2005 (VPS Rules) and the directives issued bythe Securities and the Exchange Commission of Pakistan (SECP). Wherever the requirements of the Trust Deed, the VPSRules or the directives issued by the SECP differ with the requirements of IFRSs, the requirements of the Trust Deed, theVPS Rules, 2005 or the requirements of the said directives prevail.

2.2 Standards, interpretations and amendments to published approved accounting standards that are effective inthe current year

There are certain amended standards and interpretations that are mandator y for accounting periods beginning on orafter July 1, 2014 but are considered not to be relevant or do not have any significant effect on the Fund's operationsand are therefore not detailed in these financial statements.

2.3 Standards, interpretations and amendments to published approved ac counting standards that are not yeteffective:

Th ere are certain new and amended standards and interpretations to published approved accounting standards thatare mandatory for accounting periods beginning on or after July 1, 2015 but are considered not to be relevant or donot have any significant effect on the Fund's operations and are therefore not detailed in these financial statements.

Further, the following amended standards have been issued by the IASB which are yet to be notified by the SECP forthe purpose of applicabil ity in Pakistan.

Standard

IFRS 9 – Financial Instruments: Classification and Measurement

2.4 Critical accounting estimates and judgments

The preparation of the financial statements in conformity with the approved accounting standards requires the use ofcertain critical accounting estimates. It also requires the management to exercise its judgment in the process of applyingthe Fund's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience,including expectations of future events that are believed to be reasonable under the circumstances.

The areas where various assumptions and estimates are significant to the Fund's financial statements or where judgmentwas exercised in the application of accounting policies principal ly relate to classification and valuation of investments(notes 3.2 and 6) and impairment of financial assets (3.2.6).

2.5 Basis of measurement

These financial statements have been prepared under the historical cost convention except that investments have beencarried at fair value.

3 Functional and presentation currency

These financial statements are presented in Pakistani Rupees, which is the Fund's functional and presentation currency.

"Effec tive date(annual periods beginning on or after)"

January 01, 2018



4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting polic ies applied in the preparation of these financial statement s are set out below. Thesepolicies have been consistently applied unless otherwise stated.

4.1 Cash and cash equivalents

Cash and cash equivalents comprise of bank balances including term deposits with banks and short term highly liquidinvestments that are readily convertible into known amounts of cash and are subject to an insignificant risk of changesin value with original maturities of three months or less. Cash and cash equivalent are carried in the statement of assetsand liabilities at cost.

4.2 Financial assets

4.2.1 Classific ation

The Fund classifies its financial assets in the following categories: 'at fair value through profit or loss' and 'available forsale'. The classification depends on the purpose for which the financial assets were acquired. The management determinesthe classification of its financial assets at initial recognition and re-evaluates this classification on regular basis.

a) At fair value through profit or loss - Held for trading

Quoted investmen ts which are acquired principal ly for t he purpose of generating profit from short-termfluc tuation in price or are part of a portfolio for which there is a recent actual pattern of short-term profit takingare c lassified as held for trading.

After initial recognition, the investments in listed equity instruments are remeasured at fair value determinedwith reference to Stock Exchange quoted market prices at the close of year end.

b) Loans and receivables

These are non-derivative assets with fixed or determinable payments that are not quoted in an ac tive market.

c) Available for sale

Available for sale financial assets are those non-derivative financial assets that are designated as avai lable forsale or are not classified as (a) loans and receivables or (b) financial assets at fair value through profit or loss.These are intended to be held for an indefinite period of time which may be sold in response to the needs forliquidity or change in price.

4.2.2 Initial recognition and measurement

All investments are ini tially recognized at cost, being the fair value of the consideration given including the transac tioncost associated with the investment, except in case of held for trading investments, in which case the transaction costsare charged off to the profit and loss account.

4.2.3 Subsequent measurement

a) Financial assets at fair value through profit or loss and available for sale

Subsequent to initial recognition, financial assets designated by the management as 'at fair value through profitor loss' and 'available for sale' are valued as follows:

- Basis of valuation of Term Finance Certificates (TFCs)

Invest ments in TFCs have been valued on the basis of year end rates quoted by the Mutual Fund Associationof Pakistan.



- Basis of valuation of Government Securities

The investment of the Fund in government securities are valued at their fair values (determined by referenceto the quotations obtained from the PKRV rate sheet on the Reuters page), based on the remaining tenor of thesecurity. Income accrued on treasury bills is inc luded in the carrying value of the investment.

- Basis of valuation of equity securities

The investment of the Fund in equity securities is valued on the basis of closing quoted market prices availableat the stock exchange. A security li sted on the stock exchange for which no sale is reported on the reportingdate is valued at its last sale price on the next preceding date on which such exchange is open and if no sale isreported for such date the security is valued at an amount neither higher than the closing asked price nor lowerthan the closing bid price.

- Basis of valuation of debt sec urities

The investment of the Fund in debt securities is valued on the basis of rates determined by the Mutual FundsAssociation of Pakistan (MUFAP) and in accordance with the methodology and guidelines prescribed by theSECP for valuation of debt securities. Further, the directives issued by the SECP has provided the discretion tothe management to apply markup / markdown (within the available l imits as provided in the directives) to theyields of non-traded debt securities to arrive at their fai r values.

Net g ains and losses arising on changes in the fair value of financial assets carried at fair value throug h profitor loss are taken to the income statement.

Net gains and losses arising from changes in the fair value of available for sale financial assets are taken to thestatement of comprehensive income until these are derecognised or impaired. At this time, the cumulative gainor loss previously recognised in the statement of other comprehensive income is shown in the income statement.

b) Loans and receivables

Subsequent to initial recognition financial assets classified as loans and receivables are c arried at amortised cost usingthe effective interest method.

Gains or losses are also recognised in the 'income statement ' when financial assets c arried at amort ised cost arederecognised.

Provision ag ainst non-per forming debt securi ties is made in accordance with the provisioning criteria prescribed bythe Securi ties and Exchange Commission of Pakistan and the Fund's provisioning criteria.

4.2.4 Regular Way Contracts

All regular way purchases and sales of investments are recognised on the trade date i.e. the date the Fund commits topurchase / sell the invest ments. Regular way purchase and sale of equity investments require delivery of securitieswithin two days after the transaction, as required by the Stock Exchange Regulations.

4.2.5 Transaction costs

Transaction cost associated with the acquisition of investments at fair value throug h profit or loss is charged to theincome statement currently.

Transac tion cost associated with the acquisition of investments other than investments at fai r value through profi t orloss is included in the cost of investments.

4.2.6 Impairment

The Fund assesses at eac h reporting date whether there is an objective evidence that the financial asset or a group offinancial assets is impaired. The carr ying value is reviewed at each reporting date to determine whether there is anyindication of impairment. If any such indication exists, the recoverable amount of such asset is estimated. An impairmentloss is recognised whenever the carrying value of an asset exceeds its recoverable amount.

The amount of provision for certain debt sec urities is determined based on the provisioning criteria specified by theSECP.

In case of equity securities classi fied as available for sale, a significant or prolonged decline in the fai r value of an equitysecurity below its cost i s considered as an objective evidence of impairment. In case of available for sale securities, thecumulative loss previously recognised in the statement of other comprehensive income is removed therefrom andrecognised in the income statement. Impairment losses recognised in the income statement on equity instruments areonly reversed when the equity instruments are derecognised.

For certain other financial assets, a provision for impairment is establ ished when there is an objective evidence that theFund will not be able to collect all amounts due according to the original terms. The provision against these amountsis made as per the provisioning pol icy duly formulated and approved by the Board of Direc tors of the Pension FundManager in accordance with the requirements of the Securities and Exchange Commission of Pakistan.

4.2.7 Derecognition

Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have beentransferred and the Fund has transferred substantially al l risks and rewards of ownership.

4.2.8 Offsetting of financial assets and financial liabilities

Financial assets and financial l iabi lities are only offset and the net amount repor ted in the statement of assets andliabilities when there is a legally enforceable right to set off the recognized amount and the Fund intends to either settleon a net basis, or to realize the asset and settle the liability simultaneously.

4.3 Derivatives

Derivative financ ial instrumen ts are initially recognised at fai r value and subsequent to in itial measurement eachderivative financial instrument is remeasured to its fai r value and the resultant gain or loss is recognised in the 'incomestatement'.

4.4 Financial liabilities

All financial liabilities are recognised at the time when the Fund becomes a par ty to the contractual provisions of theinstrument. They are ini tially recognised at fair value and subsequently stated at amortised cost. A financial liabilit y isderecognised when the obl igation under the liabi lity is d ischarged, cancelled or expired.

4.5 Provisions

A provision is recognised in the balance sheet when the Fund has a legal or con structive obligat ion as result of pastevent, it i s probable that an outflow of resources embodying economic benefits wil l be required to settle the obligationand a reliable estimate c an be made of the amount of the obl igation. Provisions are reviewed at each balance sheetdate and are adjusted to reflect the current best estimate.

4.6 Taxation

The income of t he Fund is exempt from taxation under clause 57 (3) (viii) of the Part I of the Second Sch edule of theIncome Tax Ordinance, 2001.



4.7 Issue, allocation, reallocation and redemption of units

Units are allocated at the offer price of each of the Sub-Fund prevalent on the day on which applications for the purchaseof units are received (however units are issued on the realisation of funds). Th e offer price represents the net assetsvalue of units at the end of the day plus the allowable front end fee. Front end fee and life insurance premium, if any,is deducted from the contribution amount and the net amount is used for the purchase of units. The front end fee ispayable to the Distribution Companies and the Pension Fund Manager as processing fee on the issuance of units.

In c ase of withdrawal before retirement, units are redeemed at the net asset value of each of the Sub-Fund as of theclose of the business day on which suc h request is received by the distributor before the cut off time. Redemption ofunits is recorded on acceptance of application for redemption.

In case of a reti rement of the participant, units are redeemed at the net asset value of each of the Sub-Fund as of theclose of the business day on which retirement age is reached.

4.8 Net Asset Value (NAV) per unit

The net assets value per unit disclosed in the statement of assets and liabi lities is calculated by dividing the net assetsof each of the Sub-Fund by the number of units in issue of that Sub-Fund at the end of the year.

4.9 Earnings per unit

Earnings per unit (EPU) are calculated based on the number of units outstanding at the year end as the managementis of the opinion that determination of weighted average units for calculating EPU is not practicable.

4.10 EXPENSES

- The Pension Fund Manager’s remuneration and the trustee’s remuneration is charged to the Sub-Funds inproportion to the net assets of the Sub-Funds.

- Audit fees is divided equally among all the Sub-Funds.- Brokerage and transaction costs, bank charges, borrowing / financial costs, taxes appl icable to the income, and

other costs are charged to the pertinent Sub-Funds on actual basis.- Legal and related costs, annual fees payable to the Commission and other costs are charged to the Sub-Funds

in proportion to the net assets of the Sub-Funds.

4.11 Other assets

Other assets are stated at cost less impairment losses, if any .

4.12 Revenue recognition

- Capital gains / losses arising on sale of investments are included in the 'income statement' on the date at whichthe transaction takes place.

- Unrealised g ains / losses arising on the revaluation of investments at fair value through profit or loss andderivatives financial instruments to fair value are taken to the income statement currently.

- Income from returns on bank deposits and investments in debt and g overnment securities are recognised atthe rate of return implici t in the instrument on a time proportionate basis.

- Dividend income is recognised when the right to receive the dividend is established.





4.13 Element of income/ (loss) and capital gains/ (losses) included in pric es of units sold less those in unitsredeemed - netAn equalisation account called the 'element of income / (loss) and capital gains / (losses) included in prices of unitsissued less those in units redeemed' is created, in order to prevent the dilution of per unit income an d distribution ofincome already paid out on redemption.

The 'element of income / (loss) and capital gains / (losses) in prices of units issued less those in units redeemed' accountis credited with the amount representing net income / (loss) and c apital gains / (losses) accounted for in the net assetvalue and included in the sale proceeds of units. Upon redemption of units, the 'element of income / (loss) and capitalgains / (losses) in prices of units issued less those in units redeemed' account is debited with the amount representingnet income / (loss) and capital gains / (losses) accounted for in the net asset value and included in the redemption price.

The 'element of income / (loss) and capital gains / (losses) in prices of units issued less those in units redeemed' duringthe year is transferred to the 'income statement'.

In profit and loss sharing accounts 5. 1 8 ,780, 635 7,4 43,0 93 1 0,108 ,114 26,3 31,84 2 3,07 9,812 5, 427, 978 2, 991, 964 11,4 99,75 4

No teEquity

Sub-Fun dDebt

Su b-Fun d

Mon eyMa rket

Su b-Fu nd To talEquity

Sub-Fun dDebt

S ub-Fun d

Mon eyMar ket

Sub-Fu nd To tal

5 BANK BALANCES

5.1 These accounts carry mark-up rates ranging from 5% to 8% (June 30, 2014: 6.5% to 8.5%) per annum.

6 INVESTMENTS

At fair v alue th ro ug h prof it or loss - he ld fo r tra din g Listed equit y securities 6 .1.1 149 ,224, 678 - - 149,2 24,67 8 95,29 3,727 - - 95,2 93,72 7Gove rnment securit ies 6. 1.2 & 6.1. 3 - 165,2 00,52 6 118,4 24,09 8 283,6 24,62 4 - 148, 568, 375 118, 782, 915 267, 351, 290

149 ,224, 678 165,2 00,52 6 118,4 24,09 8 432,8 49,30 2 95,29 3,727 148, 568, 375 118, 782, 915 362, 645, 017Ava ilable-fo r-sale in vestme nt s Listed equit y securities 6.2 - 1 98,2 13 99 1,060 1,1 89,27 3 - 264, 885 1, 324, 416 1,5 89,30 1

Inv estme nts a t fa ir valu e 149 ,224, 678 165,3 98,73 9 119,4 15,15 8 434,0 38,57 5 95,29 3,727 148, 833, 260 120, 107, 331 364, 234, 318

NoteEquity

Sub-Fun dDebt

Su b-Fun d

Mon eyMa rket


Sub-Fun dDebt

S ub-Fun d

Mon eyMar ket

Sub-Fu nd To tal

Year ended Ju ne 30, 20 15 Year en ded J un e 30 , 2 014

6.1 At fair value through profit or loss - held for trading investments

6.1.1 Listed equity securities - held by Equity Sub-Fund

Se ctor s / com panies

(Ordinar y shares having a face value of investee of Rs 10/ - each unless otherwise stated)O il & ga s mar ketin g co mpan ies

Attock Refinery Lim ited - 42 ,000 - 4 2,000 - - - - - Pakistan State Oil Company Limite d 19 ,200 54 ,700 - 4 7,900 26,00 0 10,28 6,39 1 10, 030, 540 6 .50 0. 01

Balan ce car ried for w ard 10 ,2 86 ,3 91 1 0,03 0,54 0 6 .5 0

-------------------- Number of shares-------------------- ------------Rupees------------July 1, 2014

Purchasedduring th e

yearSold during

the yearJune

30, 2015

Cost ofholding as atJune 30, 2015

Market valueas at June30, 2015

Percentageof net assets

of the Sub- Fund

Percen tageof Paid up

capital of theinvesteeco mpany

Year ended Ju ne 30, 20 15 Year en ded J un e 30 , 2 014

-------- %age --------



Ch emicalsArchroma Pakistan Limited - 30, 200 - 30, 200 - - - - -

Sitara Chem ical Industries Limited - 23, 000 - - 23,00 0 8 ,057, 850 6,9 04,60 0 4.4 7 0 .11 8 ,057, 850 6,9 04,60 0 4.4 7

Cem en tChe rat Ce ment Company Lim ited - 118, 000 - - 1 18,00 0 9 ,980, 408 10,2 69,54 0 6.6 5 0 .07D. G Khan Cem ent Com pany Limited 98,00 0 120, 000 - 218, 000 - - - - -Fauji Ce ment Company Lim ited - 200, 000 - - 2 00,00 0 7 ,289, 500 6,9 74,00 0 4.5 2 0 .02 Lucky Cement Limited - 46, 000 - 28, 000 18,00 0 8 ,282, 003 9,3 53,16 0 6.0 6 0 .01 Maple Leaf Cement 2 32,00 0 96, 000 - 328, 000 - - - - -

25 ,551, 911 26,5 96,70 0 17.2 3 Au to mo bile P ar ts & A ccessor ie sAgriautos Industries Limited. 99,00 0 - - 99, 000 - - - - -

(Face value of Rs 5 each) Thal Limited - 47, 000 - - 47,00 0 12 ,485, 100 13,4 15,21 0 8.6 9 0 .06

(Face value of Rs 5 each) 12 ,485, 100 13,4 15,21 0 8.6 9

Au to mo bile A ssem blerBaluchistan W heels Limited 1 36,19 2 - - 136, 192 - - - - -

Ge neral Tyre - 69, 000 - 69, 000 - - - - -Hinopak Motor s Limited - 7, 000 - 7, 000 - - - - -Indus Motor Com pany Limited - 10, 000 - - 10,00 0 10 ,373, 619 12,4 90,00 0 8.0 9 0 .01

P ak Suzuki Motors Company Limited - 52, 800 - 29, 800 23,00 0 10 ,017, 395 10,0 25,93 0 6.4 9 0 .03 20 ,391, 014 22,5 15,93 0 14.5 9

F oo d Pr odu ce rs J DW Sugar Mil ls Lim ited - 11, 573 - 11, 573 - - - - -

F oo d & P erso na l Car e P ro ducts Murree Brewe ry Lim ited - 8, 500 - - 8,50 0 9 ,005, 506 7,9 04,91 5 5.1 2 0 .04

Ne stle Pakistan Lim ited 80 0 100 - 900 - - - - - Rafhan Maize P roducts Company Lim ited 73 2 360 - - 1,09 2 12 ,604, 773 11,1 13,83 0 7.2 0 0 .01

21 ,610, 279 19,0 18,74 5 12.3 2 F ert ilizers

Engro Ferti lizers Limited - 75, 000 - - 75,00 0 6 ,367, 080 6,6 51,75 0 4.3 1 0 .01

Balan ce car ried fo rw ar d 1 04 ,7 49 ,6 25 1 05,1 33,4 75 6 8.11

July 1, 2014

Purchasedduring the

period

Bonusreceived

during the year

Soldduring

the yearJune

30, 2015

Cost ofholding

as at June30, 2015

Market valueas at

June 30, 2015

Percentage ofnet assets ofthe Sub-Fund

Percentageof paid upcapital of

investee company

-------------------- Number of shares-------------------- ------------Rupees------------

2 015 2 014

-------- %age --------

O il & g as explor ation co mpan ie sO il & Gas Development Company Lim ited - 9 0,00 0 - 90,0 00 - - - - -P akist an Pe troleum Limited - 8 9,80 0 - 89,8 00 - - - - -

P akist an O il fields Lim ited - 2 5,10 0 - 25,1 00 - - - - - - - -

1 0,28 6,39 1 10 ,0 30 ,5 40 6.50

Balan ce bro u gh t f or wa rd 1 0,28 6,39 1 10 ,0 30 ,5 40 6.50

Se ctor s / com panies

(Ordinar y shares having a face value of investee

of Rs 10/- e ach unless otherwise st ated)



Se ctor s / com panies (Ordinar y shares having a face value of Rs 10/ - each unless otherwise stated)

Balan ce bro ug h t fo rw ar d 10 4,74 9,62 5 10 5,13 3,47 5 68 .11

P erson al G oo ds Engro Corporation - 1 46,6 00 - 1 14,6 00 32 ,000 9,7 36,38 0 9 ,497 ,600 6.15 0. 01

Com mer cial Ban ks Bank Alfalah Limite d 136 ,000 3 83,0 00 - 5 19,0 00 - - - - - Faysal Bank Lim ited 204 ,000 3 90,0 00 58 ,500 6 49,0 00 3 ,500 55,3 02 55 ,020 0.04 0. 00

Habib Metro Bank - 2 29,0 00 - 2 29,0 00 - - - - -MCB Bank Limite d - 18,0 00 - 18,0 00 - - - - -

National Bank O f Pakistan - 1 36,5 00 - 1 36,5 00 - - - - - United Bank Lim ited - 95,0 00 - 95,0 00 - - - - -

55,3 02 55 ,020 0.04

Tech no log y & Com mu nicatio n Pakistan Te lecom munication Company Limited 253, 500 - - 2 53,5 00 - - - - -

No n Life In su ra nce Adamjee Insurance Com pany Limited 154 ,161 1 52,0 00 - 95,5 00 210 ,661 10,0 00,42 6 10 ,031 ,677 6.50 0. 06 IGI Insurance Company Limited 26 ,880 4,7 00 - - 31 ,580 7,0 89,30 8 6 ,470 ,426 4.19 0. 03

17,0 89,73 4 16 ,502 ,103 1 0.69 En g in ee ringAl-Ghazi Tractors Lim ited - 15,9 00 - 15,9 00 - - - - -

Bolan Casting Limited - 2 82,5 00 - 2 82,5 00 - - - - - International Steels Limite d - 1 94,0 00 - 1 94,0 00 - - - - -

- - - Tex tile Co mpo site

Gadoon Textile Limited 29 ,000 10,0 00 - 39,0 00 - - - - - Nishat Mil ls Limited 69 ,800 96,0 00 - 69,8 00 96 ,000 11,4 97,35 1 10 ,966 ,080 7.10 0. 03

11,4 97,35 1 10 ,966 ,080 7.10 P aper & Boa rd

Century Paper & Board Mil ls Limited - 1 20,0 00 - - 120 ,000 6,2 92,84 5 7 ,070 ,400 4.58 0. 08

Tr anspor t Pakistan National Shipping Corporation - 60,0 00 - 60,0 00 - - - - -

To tal as a t J un e 30 , 2 01 5 149,4 21,23 7 149 ,224, 678 9 6.67

To tal as a t J un e 30 , 2 01 4 79,4 01,28 1 95 ,293 ,727 9 9.76

---------------------------------------- Number of shares---------------------------------------- ------------Rupees------------

2015 2014

---------------- %age ----------------

July 1, 2014

Purchasedduring the

period

Bonusreceived

during the year

Soldduring

the yearJune

30, 2015

Cost ofholding

as at June30, 2015

Market valueas at

June 30, 2015

Percentage ofnet assets ofthe Sub-Fund

Percentageof paid upcapital of

investee company

Treasury Bills - 3 Months 6.1.2.1 110 1,720 1,810 20 1,976,686 1,975,920 1.14Treasury Bills - 6 Months 6.1.2.1 - 1,675 1,580 95 9,395,865 9,410,282 5.44Treasury Bills - 12 Months 6.1.2.1 250 2,752 1,960 1,042 98,846,402 99,061,094 57.28 110,218,953 110,447,296 63.86

-- ------ ------ ------ -Number of certificates------ ------ ----- ---- -- ----- -----Rupees- ------ ----- - ------ - %age ------ --

Note

Purchased /receivedduring

the year

Matured /sold

during the year

June30, 2015

Cost ofholding

as atJune 30, 2015

Market value as atJune

30, 2015

Percentage ofnet assets

of theSub- Fund

July1, 2014

6.1.2 Government securities - held by Debt Sub-Fund(face value of Rs. 100,000 each)



Pakistan Investments Bonds - 3 Years 6.1.2.2 1,160 375 1,535 - - - -Pakistan Investments Bonds - 5 Years 6.1.2.2 - 652 152 500 55,300,294 54,753,230 31.66 55,300,294 54,753,230 31.66

Total as at June 30, 2015 165,519,247 165,200,526 95.52

Total as at June 30, 2014 148,349,054 148,568,375 94.56

Note


the year

Matured /sold

duringthe year

June30, 2015

Cost ofholding

as atJune 30, 2015


30, 2015


of theSub- Fund

July1, 2014

6.1.2.1 These treasury bil ls carr y effective yield ranging from 6.72% to 8.64% and will mature by May 2016.

6.1.2.2 These Pakistan Investment Bonds carry effec tive yield of 8.88% and wi ll mature by July 2019.

Treasury Bills - 3 Months 6.1.3.1 1,200 4,460 5,130 530 52,582,743 52,570,760 41.15Treasury Bills - 6 Months - 905 240 665 65,806,785 65,853,338 51.55Treasury Bills - 12 Months - 670 670 - - - -

Total as at June 30, 2015 118,389,528 118,424,098 92.70

Total as at June 30, 2014 118,800,815 118,782,915 97.64

-- ------ ------ ------ -Number of certificates------ ------ ----- ---- -- ----- -----Rupees- ------ -----

Note


the year

Matured /sold

during the year

June30, 2015

Cost ofholding

as atJune 30, 2015


30, 2015


of theSub- Fund

---- ---- % --- -----

July1, 2014

6.1.3 Government securities - held by Money Market Sub- Fund(face value of Rs. 100,000 each)

6.1.3.1 These treasury bills carry effective yield ranging from 6.63% to 9.12% and will mature by November 2015.

6.2 Available-for-sale investments

6.2.1 Available-for-sale investments - held by Debt Sub-Fund

Azga rd Nin e Limite d - Pr iv ately Placed Ter m F in an ce Ce rtificate (PP TF Cs) - r elate d pa rty Privately Placed Term Finance Certificate - 5 th issue 6.2. 1.1 1 28 - - 128 640, 000 - - NPA

As at J u ne 30 , 20 14 640, 000 - - NPA

-------------------------Number of certificates------------------------- ------------Rupees------------

J uly 1, 2014


the year

Matured /sold

duringthe year Jun e 30, 2015

Cost ofholding Market value


of theSub-Fund Credit Rating

-------- %age --------

Note

6.2.1.1 The Debt Sub-fund had received 128 zero coupon PPTFCs against interest accrued on unlisted ANL PPTFCs during theyear ended June 30, 2013. Since these PPTFCs were received against already defaulted securities and had non-performingstatus in MUFAP, therefore the management of the Fund, as a matter of prudence, have valued the said PPTFCs at zerorupee value.



Se ctor s / com panies (Ordinar y shares have a face value of Rs 10/ - each unless otherwise stated)

Che micalsAgritech Limited 6. 3 25 ,742 - - 25,74 2 30 0,40 9 198, 213 0 .11 0. 01

As at Ju n e 3 0, 20 14 30 0,40 9 264, 885 0.17 0 .01


July 1, 2014


the year

Matured /sold

duringthe year June 30, 2015



of theSub-Fund

Percentage of paid up

capital ofinvestee company

-------- %age --------

Note

Listed equity securities

6.2.2 Available-for-sale investments - held by Money Market Sub-Fund

Te rm Fina n ce Cer tifica te s(face value Rs. 5 ,00 0 each)

Azg ar d Nin e L im ited - Pr iv ate ly P laced Te rm Fina n ce Cer tificate (P PT FCs) - r elate d par ty Privately P laced Term Finance Cer tificat es - 5th issue 6.2. 2.1 642 - - 64 2 3 ,210 ,00 0 - -

3 ,210 ,00 0 - -

As a t J u ne 30 , 20 1 4 3 ,210 ,00 0 - -

---------------------Nu mbe r o f ce rtificat es--------------------- ------------Rupees------------

N ote

Purchased /receiveddu ringthe year

Matured /sold

during the year

Ju ne30, 2015

Cost ofholding

as atJune 30, 2015


30, 2015

Percentage o fnet assets

of theSub-Fund

-------- % --------

July1, 2014

6.2.2.1 The Money Market Sub-fund had received 642 zero coupon PPTFCs against interest accrued on unlisted ANL PPTFCsduring the year ended June 30, 2013. Since these PPTFCs were received against already defaulted securities and hadnon-performing status in MUFAP, therefore the management of the Fund, as a matter of prudence, have valued the saidPPTFCs at zero rupee value.

Listed equity securities

Sectors / companies (Ordinar y shares have a face value of Rs 10/ - each unless otherwise stated)

Che micals Agritech Limite d 6.3 128, 709 - - 1 28,70 9 1,50 2,034 991, 060 0. 78 0.0 3


July 1, 2014


the year

Matured /sold

duringthe year June 30, 2015



of theSub-Fund

Percentage of paid u p

capital ofinvestee company

-------- %age --------

Note

6.3 During the year ended Jun e 30, 2013, the Fund alongwith other lenders, entered into a restruct uring agreement inrespect of the outstanding liabilities of Azgard Nine Limited (ANL) - related party. In terms of the said restruc turing, thefollowing Sub- Funds had acquired below mentioned ordinary shares of Agritech Limited which were previously ownedby ANL, in order to partially settle the liabilities of ANL.



The financial impact of the above restructuring on the Sub- Funds is summarised as below:

Fair val ue of ordinary shares of Agritech Limite d re ceived as per restructuring agreement 300,409 1,502,034

Number of shares acquired of Agritech Limited in settlement 25,742 128,709

DebtSub-Fund

----Rupees----

-----------------Rupees-----------------

Money MarketSub-Fund

----Rupees----

The above ordinary shares of Agri tech Limited are subjec t to sale lock-in-period of 5 years in terms of the Share PurchaseAgreement (SPA) between ANL and various lenders including the Fund. However, as per the SPA, the sale restriction isnot applicable to the transactions between the lenders of ANL.

6.3.1 In accordance with the requirements of the investment policies of the Debt Sub-Fund and the Money Market Sub-Fundissued by the SECP, the Debt Sub-Fund and Money Market Sub-Fund cannot have direct or indirect exposure to equities.However, pursuant to the restructuring terms as explained above, these Sub-Funds have taken equity exposure in theshares of Agritech Limited. The Pension Fund Manager has sought exemption from the SECP for keeping these securi tiesand its response is awaited.

EquitySub-Fun d

DebtS ub-Fun d

Mon eyMar ket

Sub-Fu nd To tal

2015

7 DEPOSITS AND OTHER RECEIVABLES

Security deposit with Central Depository Company of Pakistan Limited 10 0,000 100, 000 100, 000 3 00,0 00Profit receivable on deposit accounts with banks 8 8,034 85, 636 34, 780 2 08,4 50Profit receivable on investments - 2, 601, 273 - 2,6 01,27 3Dividend receivable 65 2,040 - - 6 52,0 40

84 0,074 2, 786, 909 134, 780 3,7 61,76 3

Security deposit wit h Central De pository Company of Pakistan Lim ited 1 00,00 0 100, 000 100, 000 300, 000Profit rece ivable on deposit accounts with banks 13,73 6 40, 000 15, 445 69, 181Profit receivable on investments - 5 ,863, 561 - 5, 863, 561Dividend receivable - - - -

1 13,73 6 6 ,003, 561 115, 445 6, 232, 742

EquitySub-Fu nd

DebtSub-Fun d

Mon eyMa rket

Su b-Fu nd To tal

2014

8 REMUNERATION PAYABLE TO THE PENSION FUND MANAGER

Re muneration payable (including sales tax and FED on remuneration of the P ension Fund Manager) 8. 1, 8 .2 & 8 .3 74 6,711 1, 039, 084 773, 946 2,5 59,74 1

------------------------------Ru pees------------------------------

EquitySub-Fun d

DebtS ub-Fun d

Mon eyMar ket

Sub-Fu nd To tal

2015

Note



Re muneration payable (including sales tax and FED on remuneration of the P ension Fund Manager) 22 8,488 356, 057 276, 920 8 61,4 65

------------------------------Ru pees------------------------------

EquitySub-Fun d

DebtS ub-Fun d

Mon eyMar ket

Sub-Fu nd To tal

2014

8.1 As per the provisions of the Voluntary Pension System Rules, 2005, JS Investments Limited, the Pension Fund Managerof the Fund is allowed to charge an annual management fee of 1.5% of the average values of the net assets of each ofthe Sub-Funds. During the year the Fund has charged the management fee at the rate of 1.5% per annum (2014: at therate of 1.5% per annum) of the average daily net assets of the Sub-Funds. The remuneration is paid to the Pension FundManager monthly in arrears.

8.2 During the year 2014 the Sindh Revenue Board levied General Sales Tax at the rate of 15% on the remuneration of thePension Fund Manager through Sindh Sales Tax on Services Act, 2011 effective from July 1, 2014.

8.3 The Finance Act, 2013 has enlarged t he scope of Feder al Excise Duty (FED) on financial services to include AssetManagement Companies (AMCs) with effect from June 13, 2013. As the asset management services rendered by thePension Fund Manager of the Fund are al ready subject to provincial sales tax on services levied by the Sindh RevenueBoard, which is being charged to th e Fund, the Pension Fund Manager is of the view t hat further levy of FED is notjustified.

On 4 September 2013, a Con stit utional Petition has been filed in the Honorable Sindh High Cou rt (SHC) jointly byvarious asset management companies, together with their representative Collective Investment Schemes through theirtrustees, c hallenging th e levy of FED. In this respec t, th e Honorable SHC has issued a stay order against recoveryproceedings. The hearing of the petition is pending.

Pending the dec ision of the SHC, the Fund has stopped making payments for FED since September, 2013. As a matterof prudence the Fund has made full provision of Rs 1.67 million (2014: Rs 0.68 million) in these financial statements

9 REMUNERATION PAYABLE TO THE TRUSTEE

The Trustee (Central Depository Company of Pakistan Limited) is entitled to remuneration of Rs. 300,000 or 0.15% perannum of the net assets value of the Fund, whichever is higher up to Net Assets of Rs. 1 billion. The rates applicable forTrustee's Remuneration on Net Assets exceeding Rs. 1 bill ion are as fol lows:

Net assets

- Above Rs. 1 billion to Rs. 3 billion Rs. 1.5 million plus 0.10% per annum of net assets, on amount exceeding Rs. 1 billion.

- Above Rs. 3 billion to Rs. 6 billion Rs. 3.5 million plus 0.08% per annum of net assets, on amount exceeding Rs. 3 billion.

- Above Rs. 6 billion Rs. 5.9 million plus 0.06% per annum of net assets, on amount exceeding Rs. 6 billion.

10 ANNUAL FEE PAYABLE TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

This represents annual fee payable to the Securities and Exchange Commission of Pakistan (SECP) in accordance withrule 36 of the Voluntary Pension System Rules, 2005 whereby the Fund is required to pay to the SECP an amount equalto one thirtieth of 1% of the average annual net assets of each of the Sub-Funds.



11 ACCRUED EXPENSES AND OTHER LIABILITIES

Settlement fee payable to the Ce ntral Depository Company of Pakistan Lim ited 8,716 918 918 10,5 52Printing and stationery expenses payable 2 1,374 21, 247 21, 248 63,8 69Zakat Payable - 249 290 5 39Payable against redem ption of units - - - -Provision against contribution to Workers' Welfare Fund 1 1.1 2,21 7,322 1, 415, 095 954, 731 4,5 87,14 8Payable against transactions in equity securities 1,29 2,854 - - 1,2 92,85 4Others 6 7,927 52, 993 32, 567 1 53,4 87

3,60 8,193 1, 490, 502 1, 009, 754 6,1 08,44 9

------------------------------Ru pees------------------------------

EquitySub-Fun d

DebtS ub-Fun d

Mon eyMar ket

Sub-Fu nd To tal

2015

Note

Settlement fee payable to Central De pository Company of Pakistan Lim ited 1,252 484 484 2,2 20Printing and stationery expenses payable 1 4,225 14, 225 14, 224 42,6 74Zakat Payable - - - -Payable against redem ption of units 97 3,629 1, 571, 421 360, 925 2,9 05,97 5Provision against contribution to Workers' Welfare Fund 1 1.1 1,63 0,115 1, 073, 351 794, 684 3,4 98,15 0Payable against transactions in equity securities - - - -Others 806 1, 237 932 2,9 75 2,62 0,027 2, 660, 718 1, 171, 249 6,4 51,99 4

------------------------------Ru pees------------------------------

EquitySub-Fun d

DebtS ub-Fun d

Mon eyMar ket

Sub-Fu nd To tal

2014

Note

11.1 The Finance Act 2008 introduced an amendment to the Workers' Welfare Fund Ordinance, 1971 (WWF Ordinance). Asa result of this amen dment it may be construed that all Collective Investment Schemes / mutual funds (CISs) whoseincome exceeds Rs. 0.5 million in a tax year, have been brought within the scope of the WWF Ordinance, thus renderingthem liable to pay contribution to WWF at the rate of two percent of their accounting or taxable income, whichever ishigher. In this reg ard, a constitutional petition has been filed by cer tain CISs through their trustees in the HonourableHigh Court of Sindh (the Court), challenging the applicabili ty of WWF to the CISs, which is pending adjudication.

During the year ended June 30, 2011, a clari fication was issued by the Ministry of Labour and Manpower (the Ministry)which stated that mutual funds are not l iable to contribute to WWF on the basis of their income. However, on December14, 2010, the Ministry filed its response against the constitutional peti tion requesting the Court to dismiss the petition.According to the legal counsel who is handling the case there is a contradiction between the aforementioned clarificationissued by the Ministr y and the response filed by the Ministry in the Court.

During the year ended June 30, 2012, the Honourable Lahore High Court (LHC) in a Constitutional Petition relating tothe amendments brought in the WWF Ordinance, 1971 through the Finance Act, 2006 and the Finance Act, 2008, haddeclared the said amendments as unlawful and unconstitutional. In March 2013, a larger bench of the Honourable SindhHigh Court (SHC) passed an order declaring that the amendments introduced in the WWF Ordinance, 1971 through theFinance Act, 2006 and the Finance Act, 2008 do not suffer from any con sti tutional or legal infirmity. However, theHonourable High Court of Sindh has not addressed the other amendments made in the WWF Ordinance 1971 aboutapplicability of WWF to the CISs which is still pending before the Court. The Pension Fund Manager in consultation withthe legal counsel has considered the implications of the above judgment of SHC and is of the view that the matter willeventually be settled in its favour and WWF will not be levied on the Fund.



Aggregate recognised amount of WWF liability 2,217 ,322 1,415 ,095 954,7 31 4,587 ,148

------------------------------Ru pees------------------------------

EquitySub-Fun d

DebtS ub-Fun d

Mon eyMar ket

Sub-Fu nd To tal

2015

Aggregate recognised amount of WWF liability 1,630 ,115 1,073 ,351 794,6 84 3,498 ,150

------------------------------Ru pees------------------------------

EquitySub-Fun d

DebtS ub-Fun d

Mon eyMar ket

Sub-Fu nd To tal

2014

Had the provision not been made the net asset value per unit of the Sub-Fund would have been higher by Rs. 5.64 forEquity Sub-Fund, Rs. 1.70 for Debt Sub-Fund and Rs.1.27 for Money Market Sub-Fund.

12 CONTINGENCIES AND COMMITMENTS

There are no contingencies and commitments outstanding as at June 30, 2015.

13 TAXATION

No provision for taxation has been made for the year ended June 30, 2015 , in view of the exemption avai lable to theFund under c lause 57(3)(viii) of Part-1 of the second schedule to the Income Tax Ordinance, 2001.

14 CONTRIBUTION TABLE

Contributions (net of front end fee) received during the year

11.2 The Finance Act, 2015 has excluded Mutual Funds and Collective Investment Schemes from the defination of “IndustrialEstabl ishment” subject to WWF under WWF Ordinance, 1971. However, provision made till June 30, 2015 has not beenreversed has the above lawsuit is pending in the SHC.

In a recent judgement of May 2014, the Peshawar High Court (PHC) has also held these amendments to be ultra viresas they lacked the essential mandate to be introduced and passed through the Money Bill under the constitution. ForCISs and Pension Funds the issue of c hargeability or otherwise of WWF levy to the CISs pension schemes, is currently,pending before the Honorable SHC.

As the matter relating to levy of WWF is currently pending in the court, t he Pension Fund Manager, as a matter ofprudence and abundant caution, has decided to recognise the entire liabili ty of Rs. 4.59 million (June 30, 2014: Rs. 3.49million) in these financial statements as follows:



From:Individuals 33,694 13,279,866 160,364 32,002,288 161,504 26,691,755 71,973,909

From:Individuals 57,651 33,457,109 307,382 187,122,232 224,590 128,812,089 349,391,430

DebtSub-Fund

Money MarketSub-Fund Total

Equi tySub-Fund

2015

Units Rupees Units Rupees Units Rupees Rupees

DebtSub-Fund

Money MarketSub-Fund Total

Equi tySub-Fund

2014

Units Rupees Units Rupees Units Rupees Rupees

15 NUMB ER OF UNITS IN ISSUE

EquitySub-Fund

DebtSub-Fund


EquitySub-Fund

DebtSub-Fund


Total units outstanding at the beginning of the year 299,036 838,349 763,920 323,202 606,971 671,813Units issued dur ing the year 33,694 160,364 161,504 57,651 307,382 224,590Units redeemed during the year (1,133) (96,369) (111,848) (64,095) (111,998) (129,627)Effect of realloc ation 61,536 (69,021) (61,662) (17,722) 35,994 (2,856)Total units in issue at the end of the year 393,133 833,323 751,914 299,036 838,349 763,920

- --- ---- --- --- ---- --- ---- --- --- ---- --- ---- --- --- -Units ---- --- ---- --- --- ---- --- ---- --- --- ---- --- ---- ---

1 6 FINA NCIAL INCO ME

Profit on investments-Profit on TFCs - - - --Profit on P akistan Investment Bonds - 6, 817, 197 - 6,8 17,19 7-Profit on Mar ke t Treasury Bi lls - 9, 027, 286 10, 429, 810 19,4 57,09 6Profit on bank balances 65 4,379 295, 846 741, 223 1,6 91,44 8

65 4,379 16, 140, 329 11, 171, 033 27,9 65,74 1

------------------------------Ru pees------------------------------

EquitySub-Fun d

DebtS ub-Fun d

Mon eyMar ket

Sub-Fu nd To tal

2015

Profit on investments-Profit on TFCs - 18, 741 - 18,7 41-Profit on P akistan Investment Bonds - 3, 896, 816 - 3,8 96,81 6-Profit on Mar ke t Treasury Bi lls - 8, 715, 335 9, 628, 724 18,3 44,05 9Profit on bank balances 59 2,336 733, 148 515, 620 1,8 41,10 4

59 2,336 13, 364, 040 10, 144, 344 24,1 00,71 9

------------------------------Ru pees------------------------------

EquitySub-Fun d

DebtS ub-Fun d

Mon eyMar ket

Sub-Fu nd To tal

2014

2015 2014



Annual stat utor y audit fee 6 1,250 61, 250 61, 250 1 83,7 50Fee for review of condensed interim financial infor mation 3 1,500 31, 500 31, 500 94,5 00Out of pocket expe nse s 1 1,309 11, 309 11, 308 33,9 26

10 4,059 104, 059 104, 058 3 12,1 76

------------------------------Ru pees------------------------------

EquitySub-Fun d

DebtS ub-Fun d

Mon eyMar ket

Sub-Fu nd To tal

2015

Annual stat utor y audit fee 5 8,333 58, 333 58, 334 1 75,0 00Fee for review of condensed interim financial infor mation 3 0,000 30, 000 30, 000 90,0 00Out of pocket expe nse s 1 4,157 14, 159 14, 159 42,4 75

10 2,490 102, 492 102, 493 3 07,4 75

------------------------------Ru pees------------------------------

EquitySub-Fun d

DebtS ub-Fun d

Mon eyMar ket

Sub-Fu nd To tal

2014

17 AUDITORS' REMUNERATION

18 TRANSACTIONS WITH RELATED PARTIES / CONNECTED PERSONS

Related parties / connected person s include JS Investments Limited being the Pension Fund Manager, the CentralDepository Company of Pakistan Limited being the Trustee, JS Bank Limited and Jahangir Siddiqui and Company Limitedbeing the holding company of the Pension Fund Manager and ultimate parent respectively, associates of the PensionFun d Manager an d i ts holding c ompany, other funds being managed by the Pension Fund Manager and the KeyManagement Personnel.

18.1 Details of balances of the Fund held with related parties / connec ted persons are as follows:

JS Investments Limited (Pension Fund Manager)R em u n er at ion p aya b le ( inc lud in g sale s ta x an d FE D o n r em un er at io n o f th e P en sio n F un d M an ag er ) 74 6,7 11 1,0 39 ,08 4 77 3,9 46 2,5 59 ,74 1 22 8,4 88 3 56 ,05 7 2 76 ,92 0 8 61 ,46 5Ex pe n ses p aya bl e - - - - 4,8 17 4 ,81 7 4 ,81 6 14 ,45 0Sa les l oa d p ay ab le - 1 ,44 3.5 0 1,4 43 .50 2 ,88 7.5 0 - - - -A m o un t h eld in p ar tic ipa nt s' Su b Fu nd s 94 ,23 8,4 00 3 6,8 94 ,33 6 30 ,15 1,0 34 16 1,2 83 ,77 0 76 ,67 2,8 00 3 3,3 14 ,22 6 2 8,2 61 ,04 9 13 8,2 48 ,07 5Un it s he ld in pa rt icip a nt s' Su b Fu nd s Nu m b er 24 0,0 00 1 77 ,76 1 17 7,4 63 5 95 ,22 5 24 0,0 00 1 77 ,76 1 1 77 ,46 3 5 95 ,22 4

Central Depository Company of Pakistan Limited (trustee)R em u n er at ion p aya b le 1 7,9 23 21 ,56 2 1 5,6 63 55 ,14 8 1 1,8 69 19 ,16 2 14 ,79 9 45 ,83 0Se t tle m en t cha rg e s pa yab le 8,7 16 91 8 9 18 10 ,55 2 1,2 52 48 4 48 4 2 ,22 0Se cu ri ty de po sit 10 0,0 00 1 00 ,00 0 10 0,0 00 3 00 ,00 0 10 0,0 00 1 00 ,00 0 1 00 ,00 0 3 00 ,00 0

JS Global Capital LimitedB ro ke ra ge p ayab le 1 8.3 - 5 ,00 0 - 5 ,00 0 - - - -

Key management personnelA m o un t he ld : 2 ,71 6,0 96 6,9 12 ,34 1 2 ,54 4,8 55 1 2,1 73 ,29 2 1 ,45 3,3 47 4,1 99 ,58 0 1,4 03 ,62 4 7,0 56 ,55 1Un it s he ld : Nu m b er 6,9 17 33 ,30 4 1 4,9 79 55 ,20 0 4,5 49 22 ,40 9 8 ,81 4 35 ,77 2

------------------------------Rupees------------------------------ ------------------------------Ru pees------------------------------

Not eEquity

Sub-Fun dDebt

Su b-Fun d

Mon eyMa rket


Sub-Fun dDebt

S ub-Fun d

Mon eyMar ket

Sub-Fu nd To tal

2015 2014



JS Investments Limited (Pension Fund Manager)R em u n er at ion fo r th e yea r 1 ,79 0,6 07 2,5 26 ,74 8 1 ,84 6,3 88 6,1 63 ,74 3 1 ,32 3,7 37 2,0 71 ,98 2 1,6 34 ,34 8 5,0 30 ,06 7Sa les t ax on P en sion Fu n d M an ag er 's re m un er at io n 31 1,5 66 4 39 ,65 3 32 1,2 71 1,0 72 ,49 0 24 5,6 87 3 84 ,56 0 3 03 ,33 4 9 33 ,58 1Fe d er al Ex cise D ut y o n Pe nsio n Fu nd M a na ge r's r em u n er at ion 28 6,4 97 4 04 ,27 9 29 5,4 22 9 86 ,19 8 21 1,7 99 3 31 ,51 6 2 61 ,49 9 8 04 ,81 4Ex pe n ses in cu rr ed 12 5,9 99 1 25 ,99 9 12 5,9 98 3 77 ,99 6 1 8,6 75 18 ,67 5 18 ,67 5 56 ,02 5Sa les L oa d e xp en se 53 .09 1 ,94 2.4 5 1,9 42 .45 3 ,93 8 - - - -A m o un t p aid o n r ed em pt io n o n u nit s - - - - 16 ,77 2,4 00 - - 1 6,7 72 ,40 0

------------------------------Rupees------------------------------ ------------------------------Ru pees------------------------------

Not eEquity

Sub-Fun dDebt

Su b-Fun d

Mon eyMa rket


Sub-Fun dDebt

S ub-Fun d

Mon eyMar ket

Sub-Fu nd To tal

2015 2014

18.2 Details of transactions with related parties / connected persons during the year:

Central Depository Company of Pakistan Limited (trustee)R em u n er at ion fo r th e yea r 19 2,5 07 2 52 ,67 6 18 4,6 41 6 29 ,82 4 13 2,3 79 2 07 ,20 8 1 63 ,44 1 5 03 ,02 8Se t tle m en t cha rg e s 3 9,2 54 5 ,93 4 5,9 34 51 ,12 2 2 2,0 87 5 ,98 4 5 ,98 4 34 ,05 5

JS Global Capital LimitedB ro ke ra ge exp e nse 6 0,3 02 ( 8,0 38 ) ( 1,5 15 ) 50 ,74 9 2 6,6 68 22 ,23 8 2 ,60 0 51 ,50 6

JS Bank LimitedP ur ch ase o f go ve rn m e nt secu r iti es - - - - - 9 5,7 17 ,94 5 - 9 5,7 17 ,94 5

Key management personnelA m o un t re cei ved o n i ssu e of un it s 1 ,14 0,0 00 2,1 20 ,00 0 94 0,0 00 4,2 00 ,00 0 30 0,0 00 9 00 ,00 0 3 00 ,00 0 1,5 00 ,00 0Un it s issue d Nu m b er 2,3 68 10 ,89 6 6,1 64 19 ,42 8 1,1 80 4 ,97 5 1 ,94 4 8 ,09 9

------------------------------Rupees------------------------------ ------------------------------Ru pees------------------------------

Not eEquity

Sub-Fun dDebt

Su b-Fun d

Mon eyMa rket


Sub-Fun dDebt

S ub-Fun d

Mon eyMar ket

Sub-Fu nd To tal

2015 2014

18.3 Th e amount disclosed represents the amount of brokerage paid to a related par ty and not the purchase or sale valueof securities transacted through them. The purchase or sale value have not been treated as transactions with relatedparty as the ultimate counter- parties are not known.

The transactions with related parties / connected persons are in the normal course of business at contracted rates andterms.

19 FINANCIAL INSTRUMENTS BY CATEGORY

Financial assetsBa nk ba lan ce s 8,7 80 ,63 5 - - 8, 78 0,6 35 7, 44 3,0 93 - - 7 ,4 43, 09 3 1 0,1 08 ,11 4 - - 10 ,10 8,1 14Inv est m en t s - 1 49 ,22 4,6 78 - 14 9,2 24 ,67 8 - 1 65 ,20 0,5 26 19 8,2 13 1 65 ,39 8,7 39 - 11 8,4 24 ,09 8 99 1,0 60 1 19 ,41 5,1 58Dep o sits a nd o t he rre ceiv ab les 8 40 ,07 4 - - 84 0,0 74 2, 78 6,9 09 - - 2 ,7 86, 90 9 13 4,7 80 - - 1 34 ,78 0

P articularsLoans andreceivables

At fairvalue

throughprofit or loss

Availablefor sale Total

Loans andreceivables

At fairvalue


Availablefor sale

Total


At fairvalue


Availablefor sale Total

Equity Sub-Fund Debt Sub-Fund Money Market Sub-Fund

------------------------------------------------------------------------------------------------------------Rupees ------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------2015-----------------------------------------------------------------------------------------------------------



Mon ey Mar ket Sub-Fun d

Fin an cial liabilitiesR e m u n e r a ti o n p a y ab l e t o t h e P e n sio n Fu n d M a n ag er - 7 4 6 ,7 1 1 7 4 6 ,7 11 - 1 ,0 3 9, 08 4 1 ,0 3 9, 08 4 - 7 7 3, 94 6 7 7 3 ,9 46R e m u n e r a ti o n p a y ab l e t o t h e Tr u s te e - 1 7 ,9 2 3 1 7 ,9 23 - 2 1, 56 2 2 1, 56 2 - 1 5, 66 3 1 5 ,6 63A u d i t f ee p a y ab le - 6 5 ,7 6 3 6 5 ,7 63 - 6 5, 76 3 6 5, 76 3 - 6 5, 76 4 6 5 ,7 64A c cr u e d e x p e n se s a n d o t h e r li ab ili t ie s - 1 ,3 9 0 ,8 7 1 1 ,3 9 0 ,8 71 - 7 5, 15 8 7 5, 15 8 - 5 4, 73 3 5 4 ,7 33

ParticularsAt fairvalue

thr oughprofit or loss

Amort isedCo st Total

At fairvalu e

throu ghpr ofit o r loss

Amo rtisedCost To tal

At fairvalue

throu ghprofit or loss

Amo rtisedCost To tal

Debt Su b-FundEquity Su b-Fund

-----------------------------------------------------------------------------Rupees -----------------------------------------------------------------------------

-----------------------------------------------------------------------------20 15 -----------------------------------------------------------------------------

Financial assetsB an k b al an ces 3 ,07 9,8 12 - - 3,0 79 ,81 2 5,4 27 ,97 8 - - 5 ,42 7,9 78 2,9 91 ,96 4 - - 2 ,99 1,9 64In ve stm e n ts - 95 ,29 3,7 27 - 9 5,2 93 ,72 7 - 1 48 ,56 8,3 75 2 64 ,88 5 1 48 ,83 3,2 60 - 11 8,7 82 ,91 5 1,3 24 ,41 6 1 20 ,10 7,3 31De p osit s an d o th err ece iva bl es 11 3,7 36 - - 1 13 ,73 6 6,0 03 ,56 1 - - 6 ,00 3,5 61 1 15 ,44 5 - - 11 5,4 45

ParticularsLoans andreceivables

At fairvalue


Availablefor sale

Total Loans andreceivables

At fairvalue


Availablefor sale

Total


At fairvalue


Availablefor sale

Total


------------------------------------------------------------------------------------------------------------Rupees ------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------2014-----------------------------------------------------------------------------------------------------------

Mon ey Mar ket Sub-Fun d

F in a n ci al li ab i li t ie sR e m u n e r a ti o n p a y ab l e t o t h e P e n sio n Fu n d M a n ag er - 2 2 8 ,4 8 8 2 2 8 ,4 88 - 3 5 6, 05 7 3 5 6, 05 7 - 2 7 6, 92 0 2 7 6 ,9 20R e m u n e r a ti o n p a y ab l e t o t h e Tr u s te e - 1 1 ,8 6 9 1 1 ,8 69 - 1 9, 16 2 1 9, 16 2 - 1 4, 79 9 1 4 ,7 99A u d i t f ee p a y ab le - 6 5 ,0 0 0 6 5 ,0 00 - 6 5, 00 1 6 5, 00 1 - 6 5, 00 0 6 5 ,0 00A c cr u e d e x p e n se s a n d o t h e r li ab ili t ie s - 9 8 9 ,9 1 2 9 8 9 ,9 12 - 1 ,5 8 7, 36 7 1 ,5 8 7, 36 7 - 3 7 6, 56 5 3 7 6 ,5 65

Par ticulars At fairvalue

thr oughprofit or loss

Amort isedCo st

Total

At fairvalu e

throu ghpr ofit o r loss

Amo rtisedCost

To tal

At fairvalue

throu ghprofit or loss

Amo rtisedCost

To tal

Debt Su b-FundEquity Su b-Fund

-----------------------------------------------------------------------------Rupees -----------------------------------------------------------------------------

-----------------------------------------------------------------------------20 14 -----------------------------------------------------------------------------

20 FINANCIAL RISK MANAGEMENT

The Fund’s objective in managing risks is the creation and protection of par ticipant investment value. Risk is inherentin the Fund’s activities, but it is managed through monitoring and controll ing ac tivities which are primarily setup tobe performed based on l imits established by the Pension Fund Manager, the Fund's constitutive doc uments and thereg ulations and directives of the SECP. These limits reflec t the business strategy and market environment of the Fundas well as the level of risk that the Fund is willing to accept, The Board of directors of the Pension Fund Manager supervisesthe overall risk management approach within the Fund. The Fund is exposed to market risk, credit risk and liquidity riskarising from the financial instruments it holds.



20.1 Market risk

Market risk is the risk that t he fair value or future cash flows of a financial instrument will fluctuate due to changes inmarket variables such as interest rates and equity prices.

20.1.1 Currenc y risk

Currency risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of changesin foreign exchange rates. The Fund has no investments as at the balance sheet date which exposes it to currency risk.

20.1.2 Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because ofchanges in market interest rates. As of 30th June 2015, the Fund is exposed to such risks in respect of bank balan ces,investment in debt and g overnment securit ies. The Bank balances are subject to interest rat es as declared by therespective bank on periodic basis.

Debt securities are subjec t to floating interest rates other than government securi ties which are subject to fixed interestrates.

a) Sensitivity analysis of fixed rate instruments

Presently the Debt Sub-Fund and Money Market Sub-Fund hold Pakistan Investment Bonds and Treasury Bills exposingthe Fund to fair value interest rate risk. The impact of 100 basis points increase / decrease in average broker rates onJu ne 30, 2015, with all variables held constant, on t he net assets and total comprehensive income for the year is asfollows:

The composition of the Fund's investment portfolio and rates announced by the Financial Market Association of Pakistanis expected t o change over time. Therefore, the sensitivit y analysis prepared as of Ju ne 30, 2015 is not necessarilyindicative of the effec t on the Fund's net assets due to future movements in interest rates.

Yield / interest rate sensitivi ty position for on balance sheet financial instruments is based on the earlier of contractualrepricing or maturity date and for off balance sheet instruments is based on settlement date.

Change in basis points

+100 (2,451,806) (151,996) (2,603,802)-100 2,451,806 151,996 2,603,802

DebtSub-Fund

Money MarketSub- Fund Total

Effec t on total comprehensiveincome and net assets"



Particulars

Exposed to yield / interest rate risk

Upto threemonths

More thanthree months

and uptoone year

More thanone year

Not exposedto yield

/ interestrate ri sk

Total

Equity Sub-Fund

On-balance shee t financi al instrume nts

Financi al assetsBank balances 8,780,635 - - - 8,780,635Investments - - - 149,224,678 149,224,678Deposits and other receivables - - - 840,074 840,074Tota l assets 8,780,635 - - 150,064,752 158,845,387

Financi al liabil ities Remunerat ion payable to the Pension Fund Manager - - - 746,711 746,711Remuneration payable to the Trustee - - - 17,923 17,923Audit fee payable - - - 65,763 65,763Accrued expenses and other liabilities - - - 1,390,871 1,390,871Tota l liabil ities - - - 2,221,268 2,221,268

On-balance shee t gap 8,780,635 - - 147,843,484 156,624,119

Off-balance shee t financi al instrume nts - - - - -

Off-balance shee t gap - - - - -

Tota l inte rest rate sensitivity gap 8,780,635 - - 147,843,484 156,624,119

Cumul ative interest rate sensiti vity ga p 8,780,635 8,780,635 8, 780,635

--------------------------------------------------- Rupees ---------------------------------------------------

--------------------------------------------------- 2015 ---------------------------------------------------



Particulars


Upto threemonths


and uptoone year

More thanone year

Not exposedto yield


Total

De bt Sub-Fund


Financi al assetsBank balances 7,443,093 - - - 7,443,093Investments 11,386,202 99,061,094 54,753,230 198,213 165,398,739Deposits and other receivables - - - 2,786,909 2,786,909Tota l assets 18,829,295 99,061,094 54, 753,230 2,985,122 175,628,741

Financi al liabil ities Remunerat ion payable to the Pension Fund Manager - - - 1,039,084 1,039,084Remuneration payable to the Trustee - - - 21,562 21,562Audit fee payable - - - 65,763 65,763Accrued expenses and other liabilities - - - 75,158 75,158Tota l liabil ities - - - 1,201,567 1,201,567

On-balance shee t gap 18,829,295 99,061,094 54, 753,230 1,783,555 174,427,174



Tota l inte rest rate sensitivity gap 18,829,295 99,061,094 54, 753,230 1,783,555 174,427,174


--------------------------------------------------- Rupees ---------------------------------------------------

--------------------------------------------------- 2015 ---------------------------------------------------



Particulars


Upto threemonths


and uptoone year

More thanone year

Not exposedto yield


Total

Money Mar ket Sub-Fund


Financi al assetsBank balances 10,108,114 - - - 10,108,114Investments 92,499,637 25,924,461 - 991,060 119,415,158Deposits and other receivables - - - 134,780 134,780Tota l assets 102,607,751 25,924,461 - 1,125,840 129,658,052

Financi al liabil ities Remunerat ion payable to the Pension Fund Manager - - - 773,946 773,946Remuneration payable to the Trustee - - - 15,663 15,663Audit fee payable - - - 65,764 65,764Accrued expenses and other liabilities - - - 54,733 54,733Tota l liabil ities - - - 910,106 910,106

On-balance shee t gap 102,607,751 25,924,461 - 215,734 128,747,946



Tota l inte rest rate sensitivity gap 102,607,751 25,924,461 - 215,734 128,747,946


--------------------------------------------------- Rupees ---------------------------------------------------

--------------------------------------------------- 2015 ---------------------------------------------------

Particulars


Upto threemonths


and uptoone year

More thanone year

Not exposedto yield


Total

Equity Sub-Fund


Financi al assetsBank balances 3,079,812 - - - 3,079,812Investments - - - 95,293,727 95,293,727Deposits and other receivables - - - 113,736 113,736Tota l assets 3,079,812 - - 95,407,463 98,487,275

Financi al liabil ities Remunerat ion payable to the Pension Fund Manager - - - 228,488 228,488Remuneration payable to the Trustee - - - 11,869 11,869Audit fee payable - - - 65,000 65,000Accrued expenses and other liabilities - - - 989,912 989,912Tota l liabil ities - - - 1,295,269 1,295,269

On-balance shee t gap 3,079,812 - - 94,112,194 97,192,006



Tota l inte rest rate sensitivity gap 3,079,812 - - 94,112,194 97,192,006


--------------------------------------------------- Rupees ---------------------------------------------------

--------------------------------------------------- 2014 ---------------------------------------------------





Particulars


Upto threemonths


and uptoone year

More thanone year

Not exposedto yield


Total

De bt Sub-Fund


Financi al assetsBank balances 5,427,978 - - - 5,427,978Investments 10,808,480 23,322,300 114,437,595 264,885 148,833,260Deposits and other receivables - - - 6,003,561 6,003,561Tota l assets 16,236,458 23,322,300 114, 437,595 6,268,446 160,264,799

Financi al liabil ities Remunerat ion payable to the Pension Fund Manager - - - 356,057 356,057Remuneration payable to the Trustee - - - 19,162 19,162Audit fee payable - - - 65,001 65,001Accrued expenses and other liabilities - - - 1,587,367 1,587,367Tota l liabil ities - - - 2,027,587 2,027,587

On-balance shee t gap 16,236,458 23,322,300 114, 437,595 4,240,859 158,237,212



Tota l inte rest rate sensitivity gap 16,236,458 23,322,300 114, 437,595 4,240,859 158,237,212


--------------------------------------------------- Rupees ---------------------------------------------------

--------------------------------------------------- 2014 ---------------------------------------------------



Particulars


Upto threemonths


and uptoone year

More thanone year

Not exposedto yield


Total

Money Mar ket Sub-Fund


Financi al assetsBank balances 2,991,964 - - - 2,991,964Investments 118,782,915 - - 1,324,416 120,107,331Deposits and other receivables - - - 115,445 115,445Tota l assets 121,774,879 - - 1,439,861 123,214,740

Financi al liabil ities Remunerat ion payable to the Pension Fund Manager - - - 276,920 276,920Remuneration payable to the Trustee - - - 14,799 14,799Audit fee payable - - - 65,000 65,000Accrued expenses and other liabilities - - - 376,565 376,565Tota l liabil ities - - - 733,284 733,284

On-balance shee t gap 121,774,879 - - 706,577 122,481,456



Tota l inte rest rate sensitivity gap 121,774,879 - - 706,577 122,481,456


--------------------------------------------------- Rupees ---------------------------------------------------

--------------------------------------------------- 2014 ---------------------------------------------------

20.1.3 Price risk

Price risk is the risk that the fair value or future cash flows of a financial instrument wil l fluctuate because of changesin market prices (other than those arising from interest risk or currency risk) wheth er t hose changes are caused byfactors specific to the individual financial in strument or its issuer, or factors affectin g all similar financial instrumenttraded in the market. The Fund's price risk generally arises on equity securities.

The Fund manages this risk by limiting i ts investment exposure in the following ways:

- Through diversification of investment portfolio- Placing limits on individuals and aggregate exposures in accordance with the internal risk management policies

and regulations laid down by the SECP.

The Fund’s investments in equity securities are publicly traded and are valued at the rates quoted on the relevant stockexchanges.

In case of 10% change in KSE 100 index on June 30, 2015, with all other variables held constant, net income for the yearwould in crease / decrease by Rs. 2.13 million (2014: Rs. 9.69 million) as a result of gains / losses on equity securitiesclassified as at fair value through profit or loss.



The analysis is based on the assumption that the equity index had increased / decreased by 10% with all other variablesheld constant and all the Sub-Funds equit y instruments moved according to historical correlation with the index. Thisrepresents the Pension Fund Manager's best estimate of a reasonable possible shift in the KSE 100 index, having regardto historical volatilit y of the index. The composition of the Sub-Fund investment's portfolio and the correlation thereofto the KSE 100 index, is expected to change over time. Accordingly, the sensitivity analysis prepared as of June 30, 2015is not necessarily indicative of the effect on the Sub-Fund's net assets of future movements in the level of the KSE 100index.

20.2 Liquidity risk

Liquidity risk is the risk that the Fund will encounter difficulty in meeting obligations and commitments associated withfinancial instruments. The Pension Fund Manager manag es liquidity risk by continuously analysing t he maturities ofits financial liabilities.

The Fund's polic y is to manage this risk by investing majority of i ts assets in investments that are traded in an act ivemarket and can be readily disposed of.

The table below analyses the Fund's financial liabilities into relevant maturity groupings based on the remaining periodat the balance sheet date to the contrac tual maturity date. The amount in the table are the contractual undiscountedcash flows.

20.2.1 Equity Sub-Fund

ParticularsWithin

1 month1 to 3

months

Morethan

5 years

1 to 5 years

3 to 12months

Financialinstruments

withoutmaturity

TotalWithin

1 month1 to 3

months

Morethan

5 years

1 to 5 years

3 to 12months


withoutmaturity

Total

Financial liabilitiesR em un e ra ti on p ay ab le to t h e P en sio n F un d M an a ge r 7 46 ,7 11 - - - - - 74 6 ,71 1 2 28 ,48 8 - - - - - 2 28 ,4 88R em un e ra ti on p ay ab le to t h e T ru st ee 1 7,9 23 - - - - - 1 7 ,92 3 11 ,86 9 - - - - - 11 ,8 69A u d it fe e p a yab le 6 5,7 63 - - - - - 6 5 ,76 3 65 ,00 0 - - - - - 65 ,0 00A cc ru e d exp e nse s a nd o t he r lia bi lit ie s 1,3 90 ,8 71 - - - - - 1,3 90 ,8 71 9 89 ,91 2 - - - - - 9 89 ,9 12

----------------------------------------- Rupees----------------------------------------- ----------------------------------------- Rupees-----------------------------------------

----------------------------------------- 2015----------------------------------------- ----------------------------------------- 2014-----------------------------------------

20.2.2 Debt Sub-Fund

ParticularsWithin

1 month1 to 3

months

Morethan

5 years

1 to 5 years

3 to 12months


withoutmaturity

Total Within1 month

1 to 3months

Morethan

5 years

1 to 5 years

3 to 12months


withoutmaturity

Total

Financial liabilitiesR em un e ra ti on p ay ab le to t h e P en sio n F un d M an a ge r 1,0 39 ,0 84 - - - - - 1,0 39 ,0 84 3 56 ,05 7 - - - - - 3 56 ,0 57R em un e ra ti on p ay ab le to t h e T ru st ee 2 1,5 62 - - - - - 2 1 ,56 2 19 ,16 2 - - - - - 19 ,1 62A u d it fe e p a yab le 6 5,7 63 6 5 ,76 3 65 ,00 0 - - - - - 65 ,0 00A cc ru e d exp e nse s a nd o t he r lia bi lit ie s 7 5,1 58 - - - - - 7 5 ,15 8 1 ,5 87 ,36 7 - - - - - 1, 58 7,3 67

----------------------------------------- Rupees----------------------------------------- ----------------------------------------- Rupees-----------------------------------------

----------------------------------------- 2015----------------------------------------- ----------------------------------------- 2014-----------------------------------------



20.2.3 Money Market Sub-Fund

ParticularsWithin

1 month1 to 3

months

Morethan

5 years

1 to 5 years

3 to 12months

Financialinstr ument s

wit houtmatur it y

TotalWithin

1 month1 to 3

months

Morethan

5 years

1 to 5 years

3 to 12months


withoutmaturity

Total

Financial liabilitiesR em un e ra ti on p ay ab le to t h e P en sio n F un d M an a ge r 7 73 ,9 46 - - - - - 77 3 ,94 6 2 76 ,92 0 - - - - - 2 76 ,9 20R em un e ra ti on p ay ab le to t h e T ru st ee 1 5,6 63 - - - - - 1 5 ,66 3 14 ,79 9 - - - - - 14 ,7 99A u d it fe e p a yab le 6 5,7 64 - - - - - 6 5 ,76 4 65 ,00 0 - - - - - 65 ,0 00A cc ru e d exp e nse s a nd o t he r lia bi lit ie s 5 4,7 33 - - - - - 5 4 ,73 3 3 76 ,56 5 - - - - - 3 76 ,5 65

----------------------------------------- Rupees----------------------------------------- ----------------------------------------- Rupees-----------------------------------------

----------------------------------------- 2015----------------------------------------- ----------------------------------------- 2014-----------------------------------------

20.3 Credit risk

Credit risk represents the risk of a loss if the counter parties fail to perform as contracted. Credit risk arises from depositswith banks and fin ancial institutions, credit exposure arising as a result of dividends receivable on equity securities,receivable against sale of investments and investment in debt securities. For banks and financial institutions balancesare kept with reputed parties. Credit risk on dividend receivable is minimal due to statutory protection. All transactionsin listed securities are settled / paid for upon delivery using the national clearing company system. The risk of defaultis considered minimal due to inherent systematic measures taken therein. Risk attributable to investment in TreasuryBills and Pakistan Investment Bonds is limited as these are guaranteed by the Federal Government.

Credit risk is managed and controlled by the Pension Fund Manager of the Fund in the following manner:

- The Fund limits its exposure to credit risk by only investing in liquid debt securi ties that have at minimum aninvestment grade as rated by a credit rating agency approved by the SECP. In the absence of issue rating, the

Fund ensures that the entity has an investment grade as rated by a credit rating agenc y approved by the SECP

- The risk of counter party exposure due to failed trades causing a loss to the Fund is mitigated by a periodicreview of trade reports, credit ratings and financial statements on a regular basis.

Concentration of Credit risk

Concentration of credit risk exists when changes in economic or industry factors similarly affect groups of counterpartieswhose aggregate credit exposure is significant in relat ion to the Fund's total credit exposure. The Fund's portfol io offinancial instruments is mostly concentrated in government securities and deposits held with a commercial bank.

20.3.1 Credit quality of bank balances

The credit qualit y of investment in bank balances can be assessed by reference to external credit ratings or to historicalinformation about counterparty default rates:

AA+ 0.66 1.78 86.56 85.29 69.25 0.37AA 99.34 98.22 13.44 14.71 30.75 99.63

100 100 100 100 100 100

* Latest available ratings assigned by PACRA at June 30, 2015

% of bank balancesexposed to credit risk




2015 2014 2015 2014 2015 2014

Rating



20.4 Fair value of financial instruments

Fair value is the amount for which an asset could be exchan ged, or a liability settled, between knowledg eable willingparties in an arm's length transaction. Consequently, differences can arise between carrying values and the fair valueestimates.Underlying the definition of fai r value is the presumption that the Fund is a going concern without any intention orrequirement to curtail materially the scale of i ts operations or to undertake a transaction on adverse terms.

Fair value of investments is determined as follows:

- Fair value of listed equity securities is determined on the basis of closing market prices quoted on the respectivestock exchange.

- Investments in government securities are valued on the basis of average rates of brokers as announced by theFinanc ial Markets Association of Pakistan.

- Listed and unlisted debt securities, other than government securities, are valued on the basis of prices announcedby the Mutual Funds Association of Pakistan (MUFAP), as per the method of valuation agreed with the Trusteesof the Fund under the Rules. The MUFAP calculates these prices in accordance with the SECP's Circular 1 of 2009.The said circular prescribes a valuation methodology which in case of currently traded securi ties, is based on

weighted average prices during the 15 days preceding the valuation date and in case of thinly or non-traded securities, on the basis of discount coupon method which takes into consideration credit risk and maturities of

the instruments.

- The fair value of all other financial assets and financial liabilities of the Fund approximate their carrying amountsdue to short term maturities of these instruments.

20.5 Fair value hierarchy

The Fund’s accounting polic y on fair value measurements of investments is discussed in note 3.2 to these financialstatements.

The Fund measures fair values using the following fair value hierarchy that reflects the significance of the inputs usedin making the measurements:

Level 1: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or liabili ties.

Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are observable forthe asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market data (i.e.unobservable inputs).

As at 30 June 2015, the Fund held the following financial instruments measured at fair value:

At fair val ue through profit or loss - held for tradingListed equity securities 149,224,678 - - 149,224,678

149,224,678 - - 149,224,678

Level 1 Level 2 Level 3 Total

2015Equity Sub-Fund

------------------------------------Rupees------------------------------------



At fair value through profit or loss - held for tradingGovernment securities - Market Treasury Bills - 110,447,296 - 110,447,296Government securities - Pakistan Investment Bonds - 54,753,230 - 54,753,230

- 165,200,526 - 165,200,526Available-for-sale investments Listed equity securities 198,213 - - 198,213

198,213 - - 198,213


2015Debt Sub-Fund

------------------------------------Rupees------------------------------------

At fair value through profit or loss - held for tradingGovernment securities - Market Treasury Bills - 118,424,098 - 118,424,098

- 118,424,098 - 118,424,098Available-for-sale investments Listed equity securities 991,060 - - 991,060

991,060 - - 991,060


2015Money Market Sub-Fund

------------------------------------Rupees------------------------------------

At fair val ue through profit or loss - held for tradingListed equity securities 95,293,727 - - 95,293,727

95,293,727 - - 95,293,727


2014Equity Sub-Fund

------------------------------------Rupees------------------------------------

At fair val ue through profit or loss - held for tradingGovernment securities - Market Treasury Bills - 34,130,780 - 34,130,780Government securities - Pakistan Investment Bonds - 114,437,595 - 114,437,595 - 148,568,375 - 148,568,375Ava ilable -for-sal e inv estme nts Listed equity securities 264,885 - - 264,885 264,885 - - 264,885


2014Debt Sub-Fund

------------------------------------Rupees------------------------------------

At fair val ue through profit or loss - held for tradingGovernment securities - Market Treasury Bills - 118,782,915 - 118,782,915 - 118,782,915 - 118,782,915Ava ilable -for-sal e inv estme nts Listed equity securities 1,324,416 - - 1 ,324,416 1,324,416 - - 1 ,324,416


2014Money Market Sub-Fund

------------------------------------Rupees------------------------------------



20.6 Capital risk management

The Fund's c apital i s represented by redeemable unit s of the Sub-Funds. They are entitled to th e paymen t o f aproportionate share based on the Sub-Fund's net assets value per unit on the redemption date. The relevant movementsare shown in the 'statement of movement in Participant's Sub-Funds'. In accordance with the risk management policiesstated above, the Fund en deavours to invest th e subscr iptions received in appropriate invest ment avenues whi lemaintaining sufficient liquidity to meet redemptions. Since the participants of the Fund have invested with a long termobjective, the possibilit y of a significant redemption pressure is limited, such liquidity being augmented by short termborrowings or disposal of investments where necessary. During the year no such borrowing was availed.

All units, including the core units, and fractions represent an undivided share in the pertinent Sub-Funds of the Fundand rank pari passu as their rights in the net assets and earnings of the Sub-Fund are not tradable or transferable. Eachparticipant has a beneficial interest in the Sub-Fund proportionate to the un its held by such participant in such Sub-Fund.

21 FINANCIAL PERFORMANCE

21.1 EQUITY SUB-FUND

Particulars2015 2014 2013 2012 2011

Equity Sub-Fund

Net income 28,773,305 36,383,524 28,061,419 5,233,166 6,772,318Capital gain on sale of investments - net 21,173,821 29,280,335 20,282,287 1,921,796 1,723,239Unrealised (loss) / gain on re-measurement of investments classified as financial assets at fair value through profit or loss - net (196,559) 12,324,333 9,542,584 1,826,442 3,597,436Dividend income 4,001,870 2,616,606 2,657,674 2,045,400 1,846,026Financial income 654,379 592,336 227,016 293,064 200,980Net asset value per unit as at June 30 392.66 319.47 197.80 110.99 94.79Total Net Assets as at June 30 154,366,930 95,532,504 63,928,971 35,833,551 30,687,659Earnings per unit 73.19 121.67 86.82 16.21 20.92Total contributions received - Gross 13,279,866 33,457,109 1,202,910 481,673 319,843

21.2 DEBT SUB-FUND

Particulars2015 2014 2013 2012 2011

Debt Sub-Fund

Net income 16,744,279 6,145,189 14,905,734 9,082,369 6,702,277Capital gain / ( loss) on sale of investments - net 5,511,442 (3,901,867) 3,563,292 3,954 (524,593)Unrealised (loss) / gain on re-measurement of investments classified as financial assets at fair value through profit or loss - net (318,721) 78,662 - - -Financial income 16,140,329 13,364,040 10,093,192 10,018,725 9,344,393Net asset value per unit as at June 30 207.55 187.41 179.58 161.18 145.01Total Net Assets as at June 30 172,955,734 157,117,862 109,002,016 89,043,204 79,116,465Earnings per unit 20.09 7.33 24.56 16.44 12.28Total contributions received - Gross 32,002,288 187,122,232 30,316,000 18,216,725 15,947,293



21.3 MONEY MARKET SUB-FUND

Particulars 2015 2014 2013 2012 2011

Money Market Sub-Fund

Net income 7,835,746 8,003,820 12,342,229 8,054,341 7,494,921Capital gain / ( loss) on sale of investments - net 96,918 (837) 1,965,465 69,440 2,071Unrealised gain / ( loss) on re-measurement of investments classified as financial assets at fair value through profit or loss - net 34,570 (17,900) - - -Financial income 11,171,033 10,144,344 8,906,774 8,921,795 7,855,444Net asset value per unit as at June 30 169.90 159.25 148.96 133.79 120.84Total Net Assets as at June 30 127,751,935 121,650,561 100,070,066 81,417,737 72,562,593Earnings per unit 10.42 10.48 18.37 13.24 12.48Total contributions received - Gross 26,691,755 128,812,089 29,524,629 17,421,746 15,586,575

21.4 Highest and lowest issue price of units issued during the year

For the year ended June 30, 2015 301.55 441.13 187.86 207.84 159.43 169.77For the year ended June 30, 2014 202.30 333.08 175.66 187.70 148.97 159.25

Lowestissue price

Highestissue price

Equity Sub-FundLowest

issue priceHighest

issue price

Debt Sub-FundLowest

issue priceHighest

issue price

Money Market Sub-Fund

-------------------------------------------------- (Rupees) --------------------------------------------------

22 GENERAL

22.1 Corresponding figures have been reclassi fied, rearranged or additionally incorporated in these financ ial statements,wherever necessary to facil itate comparison. No significant rearrangements or reclassi fications were made in thesefinancial statements.

For JS Investments Limited(Pension Fund Man ager)

Chief Executive Officer Direc tor

23 DATE OF AUTHORIZATION FOR ISSUE

These financial statements were authorised for issue by t he Board of Directors of the Pension Fun d Manager onAugust 11, 2015.

notes to the financial statements 17 - js investments ... · ... as financial institutions...

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