Untitled - JS Investments Limited

Market Review July 2017 ECONOMY

Monthly YoY Inflation

Headline inflation registered a rise of 2.91% YoY for July 2017 compared to 4.12% YoY recorded in July 2016. On a MoM basis CPI recorded an increase of 0.34%. The sequential increase resulted from continual uptick in food inflation up by 0.13% MoM while housing and energy basket contributed a hefty 0.3%MoM.

16.0%

State Bank of Pakistan reported 11.25% YoY drop in foreign remittances during June 2017 to clock in at USD 1,840mn compared to USD 2,073mn last year. This translates to a 3.08% YoY drop in remittances during FY17 compared to the same period last year.

8.0%

4.0%

Going forward, unprecedented change in global political scenario would play important role in determining worldwide economic landscape. Multilateral agencies have instilled faith in the country’s progress however flags have been raised on account of worsening CAD while overall economic growth is projected to stand over 5% during the year, higher than previous year’s GDP growth at 4.7%.

Apr-17

Dec-16

Apr-16

Aug-16

Dec-15

Apr-15

Aug-15

Apr-14

Aug-14

Dec-13

Apr-13

Dec-14

June '17

3M

6M

9M

1Y

2Y

6.70 6.70

6.55 6.56

6.50

6.46 6.47

7.00

6.44 6.44

7.50

6.14 6.15

Furthermore, SBP borrowed funds worth PKR 55.6bn in the PIB against the target amount of PKR 100bn having cut-off at 6.4091%, 6.8961% and 7.9360 for 3, 5 and 10 years PIB respectively while no bids received in 20 years PIB. Going forward the worsening current account deficit couple with declining remittances pose the severe threat to the external sector and possible reversal of inflation trajectory provide little room for downward adjustment of policy rate.

July '17

8.00

6.14 6.14

In July 2017, SBP borrowed funds worth PKR 1,616bn in the two T-bill auctions against the month target of 1,300bn while maturity of PKR 1,298bn and the bidding pattern skewed towards 3 month T- bill. In the first auction, SBP borrowed PKR 545bn against the target of PKR 650bn and maturity was PKR 611bn having cut-off at 5.9910%, 6.0109% and 6.0386 for 3, 6 and 12 month T-bill respectively. In the second auction borrowed amount was PKR 1,071bn against the target of PKR 650bn while maturity was PKR 687bn having same cut-off for all tenors of T-bill.

Interbank rates KIBOR (Average) Jul ’17 vs. Jun ’17

6.27 6.27

MONEY MARKET REVIEW

Aug-13

Apr-12

Current account deficit (CAD) for FY17 clocked in at USD 10,620mn scaling up by USD 8,386mn against a deficit of 2,234mn in the same period last year. This was attributable to import bill ballooning (up 19% YoY) while exports saw a decline of 2% YoY on the back of suppressed commodity prices in the international market. Weakened remittances (down 3.08% YoY) also contributed to bleak current account position.

Dec-12

0.0% Aug-12

In July 2017, foreign reserves dipped by 5.23%MoM to stand at USD 20.28bn owing to barraging import bill and continual external debt servicing in absence of trade and financial inflows.

12.0%

6.00 5.50

1M

3Y

EQUITY MARKET REVIEW

KSE-30 (R.H.S)

120

24,500

100

24,000

80

23,500

60 23,000

40

22,000

31-Jul

-

25-Jul

22,500 19-Jul

20 13-Jul

We understand that in the short-medium term the market might remain directionless and continue to remain under pressure unless the above mentioned issues are addressed. We as your asset managers understand that equity exposure by its very nature implies a longer investment horizon. We continue to focus on companies that are generating healthy cash flows and are available at a reasonable price. Beyond short term market tremors, we are reasonably optimistic about the Pakistan story and believe that there is significant upside in equities from current levels for a patient long term investor.

Volume (L.H.S)

Shrs in mn

7-Jul

Foreign investors have recorded a net outflow of USD 37.9mn as tensons continued to cloud valuations. The decline in stock prices, we believe have opened up valuations and with a multi-year view we expect the market to yield reasonable return going forward.

Market activity Daily volume vs. KSE-30 movement

3-Jul

The stock market remained atoned to continued developments on the political front. As Panama Leak case saw eventful revelation of JIT report and Supreme Court decision to disqualify the sitting PM, the market saw a low of 43,784 points during the month. The index however gradually recovered to close at 46,010 by end of July’17, posting a decline of 1.19%.

1

Unit Trust of Pakistan (UTP) July 2017 MUFAP Recommended Format

Investment philosophy

Performance (%)

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

Fund Benchmark Difference

1M 1Y 3Y 5Y Launch -0.01 20.46 47.60 156.11 2006.61 -0.97 8.01 21.79 74.51 962.30 0.96 12.45 25.81 81.60 1044.31

Avg. Ann.* 16.66 12.69 3.97

* Average Annualized Return since inception as per Morning Star formula

Key information

Monthly performance (%)

Fund type Category Fund launch date Net Assets (PKR mn) NAV (PKR) Benchmark Management fee Front-end Load Back-end Load Pricing mechanism Trustee Dealing Days & Cut-off time Auditor Risk profile Listing Leverage Management Quality Rating Entity Rating Investment Committee Members Mr. Hasnain Raza Nensey - CEO Mr. Khawar Iqbal - CFO Mr. Syed Ali Turab Alvi-CSO

Open end Balanced Scheme 27 October, 1997 1,686.47 187.21 BM # 2.00% (Exclusive of SST & FED) 3.00% NIL Forward Central Depository Company of Pakistan Ltd. (Monday to Friday) 3:00 p.m. KPMG Taseer Hadi & Co. Medium PSX NIL AM2 by JCR-VIS A+ (Long Term), A1 (Short Term) by PACRA

July August September October November December January February March April May June YTD Benchmark Difference

Mr. Zahid Ullah Khan - CIO / Fund Manager Mr. Yousuf Muhammad Farooq - Head of Research

Fund manager's review For the month of July, 2017, your fund returned -0.01 percent versus its benchmark return of -0.97 percent. The year to date numbers are the same since July is the first month of our yearly investment journey. There were no major changes in your portfolio of stocks except some weight shifting among the fund holdings. July was a rather turbulent month as a lot was happening on the political front and consequently fear and emotions were gyrating the market. In such scenarios, it is better to keep away from the herd and stick to your investment decisions. The fortunes of the companies in which you invest hardly change on a daily or weekly basis and neither do the political noise cause any material impact on their earnings. However, transaction value of cash goes up in such circumstances and it is a good opportunity to buy good companies' stock when others are selling under the "presumed" fear and distress of the situation. Do not let the ease of investing and divesting make you feel as if it is easy to time the market or any particular situation. If someone claims that they can time the market, then surely the world hasn't yet discovered their talent! Being a long term investor, you should always think about trading and speculation as synonyms and generally run far away from both. As always your confidence in us as your long term investment advisors make us feel proud!

FY18 -0.01

-0.01 -0.97 0.96

FY17 3.34 1.82 3.28 -2.91 5.75 6.69 3.26 0.09 0.54 3.22 3.66 -5.96 24.49 12.09 12.40

FY16 2.89 -0.90 -4.24 5.66 -2.36 2.10 0.99 -4.01 2.85 2.25 1.84 0.20 6.98 3.84 3.14

FY15 2.42 -6.41 3.76 3.43 5.31 3.88 4.50 -1.95 -8.59 8.55 -2.10 1.35 13.52 7.85 5.67

FY14 5.47 -5.57 -0.66 2.44 6.40 4.53 1.18 -0.19 4.49 4.07 1.18 -1.36 23.56 18.21 5.35

Performance data does not include the cost incurred directly by an investor in the form of sales load etc.

Asset allocation (%) Cash Placement with Banks and DFIs Equity TFCs / Sukkuks PIBs T Bills MTS / Spread Transactions Other including receivables Total

Jul-17 22.36 68.82 7.79 0.91 0.12 100.00

Jun-17 14.81 66.93 7.75 10.52 100.00

Asset quality (%age of total assets) AA+ 0.05%

AA 9.05%

A+ 13.25%

* Govt. securities (0.00%)

Equity sector breakdown (%)

Non Compliant Investments under Circular 07/2009 Name of Investment Agritech Ltd. Azgard Nine Ltd.a Agritech Ltd.b Azgard Nine Ltd.c

Type

Value before provision

Sukuks PPTFC PPTFC PPTFC

112,298,115 31,980,766 -

Provision held (if any) 112,298,115 (31,980,766) -

Value after provision -

% of Net Assets 0.00 0.00 0.00 0.00

% of Gross Assets 0.00 0.00 0.00 0.00

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

Statistical analysis Information Ratio Correlation Standard Deviation Expense Ratio*

Fund 0.26 0.87 14.6% 0.24%

Beta Largest Month Gain Largest Month Loss % Positive Months

Fund 0.5 14.0% -24.0% 72.3%

BM 1.0 19.3% -33.8% 65.1%

* For FY18

Cement Cable & Electrical Goods Engineering Commercial Banks Textile Composite Others Total

Jul-17 9.65 9.26 6.58 6.41 5.00 31.92 68.82

Jun-17 10.79 9.49 4.11 9.02 4.78 28.74 66.93

Top holding (%age of total assets) Pak Elektron Ltd. Nishat Mills Ltd. D. G. Khan Cement Co. Ltd. Mari Petroleum Co. Ltd. Indus Motor Co. Ltd. Century Paper & Board Mills Ltd. Kot Addu Power Co. Ltd. Synthetic Products Enterprises Ltd. Pakistan State Oil Co. Ltd. Bank Al - Habib Ltd.

7.54 5.00 4.76 4.41 4.16 3.72 3.49 3.23 3.22 3.12

#

Effective from 01-Sep ‘16: Rate of return of KSE-30 Index and six (6) month KIBOR, for any period of return, on the basis of actual proportions of the portfolio. Previously 50% 6M KIBOR & 50% KSE 30 Index. Cumulative return is based as per MUFAP stated methodology.

Disclosure for Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 9,297,174/-. If the same were not made the NAV per unit/return of scheme would be higher by Rs. 1.03/0.55%. For details investors are advised to read the Note 10.1 of the latest Financial Statements of the Scheme.

2

EQUITY SCHEME

JS Growth Fund (JS GF) July 2017 MUFAP Recommended Format

Performance (%)

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

Key information Fund type Open end Category Equity Scheme Fund launch date 06 June, 2006 * Net Assets (PKR mn) 2,633.92 NAV (PKR) 222.77 Benchmark KSE30 (Total Return Index) Effective from 01-Sep '16. Management fee 2.00% (Exclusive of SST & FED) Front-end Load 3.00% Back-end Load NIL Pricing mechanism Forward Trustee MCB Financial Services Ltd Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m. Auditor Grant Thorton Risk profile High Listing PSX Leverage NIL Management Quality Rating AM2 by JCR-VIS Entity Rating A+ (Long Term), A1 (Short Term) by PACRA Investment Committee Members Mr. Hasnain Raza Nensey - CEO Mr. Syed Ali Turab Alvi-CSO Mr. Zahid Ullah Khan - CIO / Fund Manager Mr. Yousuf Muhammad Farooq - Head of Research Mr. Khawar Iqbal - CFO

Fund manager's review Your fund returned 0.76 percent during the month. In comparison, your fund's benchmark returned -1.70 percent for the same period. July is the first month of your fund's accounting year and therefore the YTD return numbers are the same. There were no major changes in your fund's portfolio of holdings except for some weight shifting among various sectors. Oil & Gas Marketing, Commercial Banks, Insurance and Sugar & Allied sectors remained the major investment sectors for your fund.


1M 1Y 3Y 5Y 0.76 33.97 57.27 242.83 -1.70 10.35 19.05 99.07 2.46 23.62 38.22 143.76

Launch 259.85 106.06 153.79

Avg. Ann.* 12.16 6.69 5.47


Monthly performance (%) July August September October November December January February March April May June YTD Benchmark Difference

FY18 0.76

0.76 -1.70 2.46

FY17 3.46 3.45 3.02 0.94 10.55 9.87 7.16 -1.51 -0.73 2.78 3.12 -8.37 37.56 17.92 19.64

FY16 3.44 -2.40 -6.80 6.53 -4.82 3.81 -0.79 -4.46 4.74 3.49 1.02 1.06 3.88 0.37 3.51

FY15 2.92 -9.21 4.22 1.46 3.53 8.28 8.17 -5.12 -11.16 11.54 -2.67 2.53 12.42 5.67 6.75

FY14 11.41 -8.85 0.45 1.83 15.14 4.63 1.43 0.06 6.43 3.18 1.78 -1.28 40.12 25.96 14.16


Asset allocation (%) Cash Equity Other including receivables Total

Jul-17 10.41 89.43 0.16 100.00

Jun-17 8.92 88.74 2.35 100.00

Jul-17 14.77 8.74 8.36 7.84 7.58 42.13 89.43

Jun-17 14.23 8.62 14.44 8.22 7.62 35.61 88.74

Equity sector breakdown (%) Insurance Sugar & Allied Industries Commercial Banks Cable & Electrical Goods Oil & Gas Marketing Companies Others Total

Top holding (%age of total assets) Shahtaj Sugar Mills Ltd. Adamjee Insurance Co. Ltd. IGI Insurance Ltd. Pak Elektron Ltd. Nishat Mills Ltd. Mari Petroleum Co. Ltd. Pakistan State Oil Co. Ltd. Rafhan Maize Products Ltd. Orix Leasing Pakistan Ltd. Attock Petroleum Ltd.

Statistical analysis Information Ratio Correlation Standard Deviation Expense Ratio* *For FY18

7.82 7.48 7.29 6.90 5.70 5.11 4.23 3.62 3.42 3.35

Disclosure for Sindh Workers' Welfare Fund (SWWF)

Fund 0.32 0.85 23.3% 0.26%


Fund 0.8 18.9% -35.2% 63.4%

BM 1.0 25.2% -45.1% 60.4%

The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 18,807,008/-. If the same were not made the NAV per unit/return of scheme would be higher by Rs. 1.59/0.71%. For details investors are advised to read the Note 10.1 of the latest Financial Statements of the Scheme. * Converted into open end scheme on 19 July, 2013. Cumulative return is based as per MUFAP stated methodology.

3

JS Value Fund (JS VF) July 2017 MUFAP Recommended Format


Performance (%)

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


* Average Annualized Return since last ten year as per Morning Star formula

Key information


Fund type Open end Category Equity Scheme Fund launch date 14 January, 1996 * Net Assets (PKR mn) 1,197.33 NAV (PKR) 250.43 Benchmark KSE30 (Total Return Index) Effective from 01-Sep '16. Management fee 2.00% (Exclusive of SST & FED) Front-end Load 3.00% Back-end Load NIL Pricing mechanism Forward Trustee MCB Financial Services Ltd Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m. Auditor KPMG Taseer Hadi & Co. Risk profile High Listing PSX Leverage NIL Management Quality Rating AM2 by JCR-VIS Entity Rating A+ (Long Term), A1 (Short Term) by PACRA Investment Committee Members Mr. Hasnain Raza Nensey - CEO Mr. Zahid Ullah Khan - CIO / Fund Manager Mr. Khawar Iqbal - CFO Mr. Syed Ali Turab Alvi-CSO Mr. Yousuf Muhammad Farooq - Head of Research


1M 1Y 3Y 5Y -0.07 21.79 53.38 236.50 -1.70 10.35 19.05 99.07 1.63 11.44 34.33 137.43

FY18 -0.07

-0.07 -1.70 1.63

FY17 2.99 3.04 2.65 -1.84 6.48 11.35 3.18 -0.75 -0.90 3.38 2.65 -8.06 25.53 17.92 7.61

10Y 203.45 51.02 152.43

FY16 5.69 -2.69 -5.87 7.55 -3.25 4.21 0.09 -5.23 5.88 3.44 1.74 2.49 13.72 0.37 13.35

Avg. Ann.* 11.73 4.21 7.52

FY15 2.04 -6.80 4.69 1.33 2.17 5.83 6.26 -2.35 -10.97 10.44 -3.52 2.16 9.72 5.67 4.05

FY14 8.16 -7.20 -0.82 3.02 12.94 4.30 0.57 0.73 6.46 2.87 2.13 -1.00 35.52 25.96 9.56


Asset allocation (%)

Fund manager's review For the month of July, your fund returned -0.07 percent versus its benchmark return of 1.70 percent. The YTD return numbers are the same since July is the first month of your Fund's accounting year.

Cash Equity Other including receivables Total

Jul-17 9.02 90.64 0.34 100.00

Jun-17 3.57 92.27 4.16 100.00

Jul-17 11.65 8.47 7.99 6.72 6.38 49.43 90.64

Jun-17 16.55 8.01 2.83 13.32 4.33 47.24 92.27

Equity sector breakdown (%) There were no major changes in your fund's portfolio except for some weight shifting among various sectors. Your fund is majorly invested in Cements, Textiles, Engineering, Commercial banks, and Cable and Electrical Goods sectors.

Cement Cable & Electrical Goods Engineering Commercial Banks Textile Composite Others Total

Top holding (%age of total assets) Pak Elektron Ltd. Nishat Mills Ltd. Mari Petroleum Co. Ltd. Al-Abbas Sugar Mills Ltd. Thatta Cement Co. Ltd. Pakistan National Shipping Corporation Ltd. Thal Ltd. Pakistan State Oil Co. Ltd. Indus Motor Co. Ltd. Kot Addu Power Co. Ltd.

Statistical analysis Information Ratio Correlation Standard Deviation Expense Ratio*

Fund 0.17 0.95 20.6% 0.27%


Fund 0.6 21.4% -24.4% 65.9%

BM 1.0 25.2% -45.0% 61.8%

6.94 6.38 6.38 5.83 4.21 3.97 3.81 3.78 3.51 3.42

Disclosure for Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 8,143,945/-. If the same were not made the NAV per unit/return of scheme would be higher by Rs. 1.70/0.68%. For details investors are advised to read the Note 10.1 of the latest Financial Statements of the Scheme. * Converted into open end scheme on 27 June, 2013.

*For FY18

Cumulative return is based as per MUFAP stated methodology.

4

EQUITY SCHEME

JS Large Cap. Fund (JS LCF) July 2017 MUFAP Recommended Format


Performance (%)

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

Key information Fund type Category Fund launch date Net Assets (PKR mn) NAV (PKR) Benchmark Management fee Front-end Load Back-end Load Pricing mechanism Trustee Dealing Days & Cut-off time Auditor Risk profile Listing Leverage Management Quality Rating Entity Rating Investment Committee Members Mr. Hasnain Raza Nensey - CEO Mr. Zahid Ullah Khan - CIO Mr. Khawar Iqbal - CFO


1M 1Y 0.41 35.78 -1.70 10.35 2.11 25.43

3Y 5Y 93.34 314.76 19.05 99.07 74.29 215.69

Launch 745.79 240.09 505.70

Avg. Ann.* 17.53 9.70 7.83


Monthly performance (%) Open end Equity Scheme 14 May, 2004 * 802.19 157.69 KSE30 (Total Return Index) Effective from 01-Sep '16. 2.00% (Exclusive of SST & FED) 3.00% NIL Forward Central Depository Company of Pakistan Ltd. (Monday to Friday) 3:00 p.m. Deloitte Yousuf Adil High PSX NIL AM2 by JCR-VIS A+ (Long Term), A1 (Short Term) by PACRA


Mr. Syed Ali Turab Alvi-CSO Mr. Yousuf Muhammad Farooq - Head of Research Mr. Syed Sanakhawan - Fund Manager

Fund manager's review Your fund returned 0.41 percent during the month while the benchmark yielded a return of 2.11 percent, underperforming the benchmark by 1.70 percent. The key driver of short term underperformance was PKR/USD adjustment which was reversed subsequently, creating fear amongst investors about higher chance of devaluation of local currency which is negative for Autos (until they pass on the price). Furthermore, index heavy Oil & Gas stocks outperformed the index in light of increasing global crude oil prices. We continue to favor local demand led stocks despite concerns over balance of payment and currency devaluation. We believe the local demand story is still reasonably strong and with a medium term outlook (1-3 years) looks set to gain further. We continue to favor consumer electronics as our top sector exposure. Furthermore, we have increased exposure to Engineering sector in light of robust earning power via taking position in Ittefaq Iron Industries, which provides growth at a reasonable price. It is pertinent to highlight to our valued investors that monthly or even quarterly performance may deviate from benchmark since most of our investment thesis play out over 12-24 month time horizon, which invariably not only requires conviction but also excruciating patience both at the Fund Manager’s end and at investor’s end. Our long term investors who have enjoyed long term abnormal returns are well aware of our strategy. I would like to take this opportunity to reiterate our gratitude for you confidence in JS Investments and in JS Large Cap in particular, nothing means more to us than your trust in us and we are obliged and humbled to be your investment advisor.

FY18 0.41

0.41 -1.70 2.11

FY17 6.71 2.91 5.10 -2.91 9.81 8.99 6.12 -1.70 -0.04 5.35 4.76 -6.50 44.30 17.92 26.38

FY16 6.07 -3.30 -7.28 7.83 -5.91 4.67 -0.49 -5.33 6.35 2.23 -0.21 1.50 4.77 0.37 4.40

FY15 3.43 -10.37 8.70 6.87 7.34 9.16 8.86 -3.83 -9.81 12.66 -3.00 1.18 31.74 5.67 26.07

FY14 12.94 -8.41 -1.23 3.16 12.98 5.55 4.48 -6.70 8.30 3.63 3.40 -1.79 39.64 25.96 13.68


Asset allocation (%) Cash Equity Other including receivables Total

Jul-17 9.85 89.52 0.63 100.00

Jun-17 6.84 88.36 4.81 100.00

Jul-17 11.05 10.09 9.92 8.74 7.60 42.10 89.52

Jun-17 10.42 5.68 10.54 2.50 7.33 51.88 88.36

Equity sector breakdown (%) Cable & Electrical Goods Textile Composite Automobile Assembler Engineering Oil & Gas Exploration Companies Others Total

Top holding (%age of total assets) Mari Petroleum Co. Ltd. Pak Elektron Ltd. Nishat Mills Ltd. Agriautos Industries Ltd. Indus Motor Co. Ltd. Ittefaq Iron Industries Ltd. Shifa International Hospitals Ltd. Attock Petroleum Ltd. Singer Pakistan Ltd. Thal Ltd.

7.60 7.30 7.06 6.15 4.73 4.69 4.66 4.55 3.75 3.73


Fund 0.35 0.83 22.1% 0.29%


Fund 0.7 14.7% -30.8% 61.6%

BM 1.0 25.2% -45.0% 61.0%

Disclosure for Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 5,942,443/-. If the same were not made the NAV per unit/return of scheme would be higher by Rs. 1.17/0.74%. For details investors are advised to read the Note 10.1 of the latest Financial Statements of the Scheme. * Converted into open end scheme on 26 September, 2010.

5

JS Islamic Fund (JS ISF) July 2017 MUFAP Recommended Format


Performance (%)

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

Key information


1M 1Y 3Y 5Y Launch -0.13 32.90 112.63 330.59 1092.13 0.72 12.93 61.61 215.11 785.71 -0.85 19.97 51.02 115.48 306.42

Avg. Ann.* 18.50 16.11 2.39


Fund type Open end Category Shariah Compliant Islamic - Equity Scheme Fund launch date 27 December, 2002 Net Assets (PKR mn) 1,719.39 NAV (PKR) 130.55 Benchmark KMI-30 Index Management fee 2.00% (Exclusive of SST & FED) Front-end Load 3.00% Back-end Load NIL Pricing mechanism Forward Trustee Central Depository Company of Pakistan Ltd. Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m. Auditor A. F. Ferguson & Co. Shariah advisor M/s. Al Hilal Shariah Advisors (Pvt) Limited Risk profile High Listing PSX Leverage NIL Management Quality Rating AM2 by JCR-VIS Entity Rating A+ (Long Term), A1 (Short Term) by PACRA Investment Committee Members Mr. Hasnain Raza Nensey - CEO Mr. Zahid Ullah Khan - CIO / Fund Manager Mr. Khawar Iqbal - CFO Mr. Syed Ali Turab Alvi-CSO Mr. Yousuf Muhammad Farooq - Head of Research


FY18 -0.13

-0.13 0.72 -0.85

FY17 9.76 1.98 7.51 -2.04 10.44 8.12 3.13 -1.21 0.27 6.12 2.94 -7.02 46.06 18.80 27.26

FY16 2.96 -4.33 -6.10 5.97 -5.64 4.56 0.54 -5.20 7.66 2.37 1.85 2.33 5.88 15.53 -9.65

FY15 3.79 -11.70 9.19 8.71 7.98 8.68 7.41 -1.86 -10.57 13.79 -1.15 5.55 42.90 20.10 22.80

FY14 15.35 -11.98 1.59 1.02 10.07 4.84 5.64 -3.33 7.37 3.46 0.81 0.67 38.43 29.89 8.54



Fund manager's review Your fund returned -0.13 percent for the month of July against its benchmark return of 0.72 percent, translating into an under-performance of -0.85 percent. The YTD (year to date) return figures are the same as July is the first month of your fund's accounting year. During the month, your fund shifted more weight towards Engineering, Oil and Gas Exploration, Textile, and Cable and Electrical Goods sectors, while reducing its weight in Cements. Investment level of your fund also increased overall from 80.89 to 86.60 percent. There was no particular reason for keeping some cash in the fund except that yours truly is looking for some high conviction stocks to add to your fund's holdings.

Cash Equity Other including receivables Total

Jul-17 13.02 86.60 0.38 100.00

Jun-17 18.50 80.89 0.60 100.00

Jul-17 10.48 10.48 10.14 7.12 7.00 41.39 86.60

Jun-17 4.21 15.42 9.38 5.62 5.17 41.08 80.89

Equity sector breakdown (%) Engineering Cement Cable & Electrical Goods Oil & Gas Exploration Companies Textile Composite Others Total

Top holding (%age of total assets) Pak Elektron Ltd. Mari Petroleum Co. Ltd. Nishat Mills Ltd. Agriautos Industries Ltd. Ittefaq Iron Industries Ltd. D. G. Khan Cement Co. Ltd. International Steels Ltd. Kot Addu Power Co. Ltd. Thal Ltd. Meezan Bank Ltd.

7.56 7.12 7.00 5.21 4.31 4.30 3.99 3.79 3.46 3.11


Fund 0.27 0.81 21.8% 0.26%


Fund 0.8 15.4% -28.7% 68.8%

BM 1.0 20.2% -37.1% 64.6%

Disclosure for Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 9,243,107/-. If the same were not made the NAV per unit/return of scheme would be higher by Rs. 0.70/0.54%. For details investors are advised to read the Note 10.1 of the latest Financial Statements of the Scheme. Cumulative returns are based as per MUFAP stated methodology.

6

JS Fund of Funds (JS FoF) July 2017 MUFAP Recommended Format


Performance (%)

JS FoF is a fund of funds that aims to grow investor’s capital in the long term while diversifying the asset manager risk bundled together with the benefits of an asset allocation fund. The fund operates a diverse portfolio of equity, balanced, fixed income and money market funds (both open and closed ended) with the option to adjust the asset mix as equity markets rise or fall and the economy strengthens or weakens.


1M 1Y 3Y 5Y -0.22 19.79 51.68 168.71 -0.88 10.25 42.07 114.51 0.66 9.54 9.61 54.20

Launch 396.02 199.94 196.08

Avg. Ann.* 14.59 9.79 4.80


Key information Fund type Open end Category Fund of Fund Scheme Fund launch date 31 October, 2005 Net Assets (PKR mn) 308.18 NAV (PKR) 58.06 Benchmark BM FOF# Management fee 1.00% (Exclusive of SST & FED) Front-end Load 3.00% Back-end Load NIL Pricing mechanism Forward Trustee Central Depository Company of Pakistan Ltd. Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m. Auditor KPMG Taseer Hadi & Co. Risk profile Medium Listing PSX Leverage NIL Management Quality Rating AM2 by JCR-VIS Entity Rating A+ (Long Term), A1 (Short Term) by PACRA Investment Committee Members Mr. Hasnain Raza Nensey - CEO Mr. Zahid Ullah Khan - CIO / Fund Manager Mr. Khawar Iqbal - CFO Mr. Syed Ali Turab Alvi-CSO Mr. Yousuf Muhammad Farooq - Head of Research


FY18 -0.22

-0.22 -0.88 0.66

FY17 1.09 0.94 2.85 -3.09 5.77 8.27 4.48 -0.28 -0.78 3.95 3.85 -6.62 21.37 15.74 5.63

FY16 2.66 -2.28 -6.25 5.78 -2.97 3.78 -1.11 -3.30 6.21 3.63 3.71 -0.24 9.08 3.98 5.10

FY15 4.88 -7.37 3.52 2.93 4.47 5.34 5.35 -0.95 -7.01 10.03 -1.97 1.01 20.44 21.16 -0.72

FY14 13.60 -8.62 6.78 -0.05 7.87 4.63 3.32 -2.52 5.38 4.43 1.77 -0.67 40.09 19.79 20.30



Fund manager's review Your fund returned -0.22 percent for the month of July versus its benchmark return of 0 (zero) percent. The return figures are same for the YTD duration as July is the starting month of your fund's accounting year. During the month your fund's holdings i.e. investment in other mutual funds, remained largely unchanged. Your fund is a long term investor in other mutual funds in the industry and your fund manager strives to select the best funds among the lot. Yours truly do not attempt to time the market through these funds, and your fund remains a consistent and persistent investor in the selected funds. Long term performance is the only key criterion for the basis of selection of these funds.

Open-end Close-end T Bills Cash Other including receivables Total

Jul-17 93.92 5.98 0.10 100.00

Jun-17 86.66 13.23 0.12 100.00

Top holding (%age of total assets) JS Large Cap. Fund Atlas Stock Market Fund National Investment Trust ABL Stock Fund NAFA Stock Fund JS Islamic Fund JS Growth Fund

33.21 11.78 10.85 10.83 10.80 9.86 6.58



Fund 0.16 0.93 16.0% 0.11%


Fund 0.9 13.6% -13.7% 66.9%

BM 1.0 11.0% -25.1% 68.3%

The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 1,519,908/-. If the same were not made the NAV per unit/return of scheme would be higher by Rs. 0.29/0.49%. For details investors are advised to read the Note 10.1 of the latest Financial Statements of the Scheme. Cumulative returns are based as per MUFAP stated methodology. #

'Weighted Average of "Three (3) months PKRV rates", "Six (6) months KIBOR rates" and "KSE-100 Index", on the basis of actual investment in money market, income and equity schemes '. "

7

SHARIAH COMPLIANT FUND OF FUNDS SCHEME

JS Islamic Hybrid Fund of Funds (JS IHFoF) July 2017 MUFAP Recommended Format


Performance (%)

JS Islamic Hybrid Fund of Funds aims to generate need based returns for its clients by offering several Allocation Baskets/Plans with varying mix of exposures to low / high risk asset classes via underlying mutual funds. Investment Objectives of the Allocation Baskets/Plans initially offered under JSIHFOF are Mustanad, Mustahkem, Mutanasib, Mufeed & Munafa.

Key information Fund type Category Fund launch date Benchmark Management fee Front-end Load

Back-end Load Pricing mechanism Trustee Dealing Days & Cut-off time Auditor Risk profile

Open end Shariah Compliant Fund of Funds 7 June, 2017 BM IHFOF* Nil (Up to 1% M.Fee p.a. applicable on investments made in CIS not managed by JSIL Mustanad 0% | Mustehkam 0.5% | Mutanasib Up to 3% | Mufeed Up to 3% | Munafa Up to 3% of NAV(FED & SST rate applicable) NIL Forward MCB Financial Services Ltd. (Monday to Friday) 3:00 p.m. KPMG Taseer Hadi & Co. Low-Moderate-High (as per allocation basket/plan) PSX NIL AM2 by JCR-VIS A+ (Long Term), A1 (Short Term) by PACRA

Listing Leverage Management Quality Rating Entity Rating Investment Committee Members Mr. Hasnain Raza Nensey - CEO Mr. Zahid Ullah Khan - CIO / Fund Manager Mr. Khawar Iqbal - CFO Mr. Syed Ali Turab Alvi-CSO Mr. Yousuf Muhammad Farooq - Head of Research

JSIHFOF - Mustahkem JSIHFOF - Munafa JSIHFOF - Mustanad JSIHFOF - Mutanasib JSIHFOF - Mufeed

NAV (PKR) 99.66 98.49 100.29 98.96 98.52

Net Assets (PKR mn) 220.66 22.25 822.70 93.38 78.23

JSIHFOF - Mustahkem Benchmark JSIHFOF - Munafa Benchmark JSIHFOF - Mustanad * Benchmark * JSIHFOF - Mutanasib Benchmark JSIHFOF - Mufeed Benchmark * Annualized returns

1M 0.38 0.56 0.64 1.38 3.30 1.75 0.59 1.31 0.61 1.27

1Y n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a



Launch -0.34 -1.25 -1.51 -3.65 3.18 1.05 -1.04 -2.45 -1.48 -3.20

Monthly performance (%) JSIHFOF JSIHFOF JSIHFOF JSIHFOF Mustahkem Munafa Mustanad* Mutanasib FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 Jul 0.38 n/a 0.64 n/a 3.30 n/a 0.59 n/a Aug n/a n/a n/a n/a Sep n/a n/a n/a n/a Oct n/a n/a n/a n/a Nov n/a n/a n/a n/a Dec n/a n/a n/a n/a Jan n/a n/a n/a n/a Feb n/a n/a n/a n/a Mar n/a n/a n/a n/a Apr n/a n/a n/a n/a May n/a n/a n/a n/a Jun -0.72 -2.14 3.02 -1.62 YTD 0.38 -0.72 0.64 -2.14 3.30 3.02 0.59 -1.62 BM 0.56 -1.80 1.38 -4.97 1.75 0.11 1.31 -3.72 Diff. -0.18 1.08 -0.74 2.83 1.55 2.91 -0.72 2.10 * Annualized returns

JSIHFOF Mufeed FY18 FY17 0.61 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a -2.08 0.61 -2.08 1.27 -4.41 -0.66 2.33

Asset allocation (%) Jul-17

Fund manager's review

The month of July was the first full month for the fund and your fund managers were occupied in reaching their target portfolio. Funds underperformed their respective benchmark (except for Mustanad which outperformed the benchmark by 1.55%) as capital deployment activities were ongoing. Your fund is a long term investor in other mutual funds in the industry and your fund managers strive to select the best funds among the lot. Yours truly do not attempt to time the market through these funds, and your fund remains a consistent and persistent investor in the selected funds. Long term performance is the only key criterion for the basis of selection of these funds. As always your confidence in us as your long term investment advisors makes us proud!

Cash Equity Fixed income Other Total

JSIHFOF Mustahkem 0.97 31.64 66.98 0.40 100.00

JSIHFOF Munafa 2.53 94.70 2.77 100.00

JSIHFOF Mustanad 6.13 93.66 0.21 100.00

JSIHFOF Mutanasib 24.34 74.91 0.75 100.00

JSIHFOF Mufeed 6.86 92.29 0.85 100.00

Top holding (%age of total assets) JSIHFOF - Mustahkem ABL Islamic Income Fund Atlas Islamic Income Fund Alhamra Islamic Income Fund JSIHFOF - Munafa JS Islamic Fund

16.74 16.75 16.74 94.70

Expense ratio JS Islamic Hybrid Fund Of Funds-Mustahkem JS Islamic Hybrid Fund Of Funds-Munafa JS Islamic Hybrid Fund Of Funds-Mustanad JS Islamic Hybrid Fund Of Funds-Mutanasib JS Islamic Hybrid Fund Of Funds-Mufeed

0.12% 0.13% 0.13% 0.10% 0.09%

BM IHFOF* Weighted average daily return of KMI 30 index, six (6)/ three (3) month average deposit rates of three (3) 'A' rated scheduled Islamic Banks or Islamic Banking windows of scheduled Commercial Banks, as selected by MUFAP based on actual proportion of the Equity Portion consisting of Shariah Compliant Equity Funds, Income Portion consisting of Shariah Compliant Income and Money Market Funds, and any Cash or Near cash instruments in each of the Allocation Baskets".

JSIHFOF - Mustanad ABL Islamic Income Fund Atlas Islamic Income Fund Alhamra Islamic Income Fund JSIHFOF - Mutanasib JS Islamic Fund

JSIHFOF - Mufeed JS Islamic Fund

24.32 20.68 24.33 74.91

92.29

Disclosure for Sindh Workers' Welfare Fund (SWWF) The Fund has provided an amount of Rs.117,026 JS Islamic Hybrid Fund of Funds – Mustanad against Sindh Workers’ Welfare Fund (SWWF) Liability.

8

JS Cash Fund (JS CF) July 2017 MUFAP Recommended Format 2

Performance (%)


Annualized performance

JS Cash Fund (JS CF) is an open-end 'Money Market Scheme' that mainly invests in low risk shortterm fixed income instruments including money market instruments to provide a regular and reasonable return to investors while ensuring high liquidity. The Fund shall invest primarily in short duration instruments and may even hold some or all of its assets in cash for the purpose maintaining liquidity.


Key information


Fund type Category Fund launch date Net Assets (PKR mn) NAV (PKR) Benchmark Management fee Front-end Load Back-end Load Pricing mechanism Trustee Dealing Days & Cut-off time Auditor Risk profile Listing Fund stability rating (JCR-VIS) Leverage Management Quality Rating Entity Rating Investment Committee Members Mr. Hasnain Raza Nensey - CEO Mr. Zahid Ullah Khan - CIO Mr. Khawar Iqbal - CFO Mr. Syed Ali Turab Alvi-CSO Mr Asim Ilyas - Fund Manager

Open end Money Market Scheme 29 March, 2010 778.92 102.07


BM CF1 0.50% (Exclusive of SST & FED) 1.00% NIL Backward MCB Financial Services Ltd (Monday to Friday) 3:00 p.m. KPMG Taseer Hadi & Co. Extremely Low PSX AA+ (f) NIL AM2 by JCR-VIS A+ (Long Term), A1 (Short Term) by PACRA

1M 4.98 5.21 -0.22

FY18 4.98

4.98 5.21 -0.22

1Y 5.66 5.32 0.34

FY17 5.51 5.37 5.06 4.99 4.90 5.28 10.85 4.91 5.41 4.43 4.60 5.33 5.71 5.29 0.41

3Y 7.25 6.70 0.55

5Y 8.71 8.43 0.27

Launch 11.66 10.76 0.90


FY16 5.87 5.72 6.94 5.66 4.54 5.61 5.70 5.47 5.54 5.35 5.38 4.95 5.71 5.74 -0.03

FY15 8.62 8.69 8.68 9.05 9.34 8.33 10.03 7.62 7.17 8.93 6.65 14.10 9.30 8.20 1.10

2

FY14 7.28 7.24 5.83 7.27 7.65 8.04 8.06 8.17 8.86 8.88 8.91 8.84 8.21 8.73 -0.52



Mr. Yousuf Muhammad Farooq - Head of Research

Fund manager's review JS Cash Fund reported an annualized return of 4.98% for the month of July 2017, as compared to the annualized benchmark return of 5.21%, underperforming by 22basis points. During the month, the fund witnessed no significant variation in the exposure of Tbills. Going forward, the fund manager shall maintain the maturity of the fund towards the lower end at the onslaught of expected higher inflation trajectory while continuing to negotiate for better bank rates.

Jul-17 66.97 32.70 0.33 100.00

Cash Placement with Banks and DFIs T Bills Other including receivables Total

Jun-17 62.67 37.09 0.24 100.00

Asset quality (%age of total assets) A+ 0.20%

AA 66.77%

AA+ 0.00%

AAA 32.70%



Statistical analysis Standard Deviation Expense Ratio* Duration (Days) WAM (Days) * For FY18

Fund 0.8% 0.09% 23 23

BM 0.6%

Largest Month Gain Largest Month Loss % Positive Months

Fund 1.2% 0.0% 100.0%

BM 0.9% 0.0% 100.0%

The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 1,194,544/-. If the same were not made the NAV per unit/return of scheme would be higher by Rs. 0.16/0.15%. For details investors are advised to read the Note 10.1 of the latest Financial Statements of the Scheme.

1.

70% three (3) months PKRV rates + 30% three (3) months average deposit rate of three (3) “AA” rated scheduled Banks as selected by MUF AP

2.

Annualized return is based as per MUFAP stated methodology.

9

JS Income Fund (JS IF) July 2017 MUFAP Recommended Format

Performance (%)


1M 6.02 6.14 (0.13)


1Y 6.34 6.29 0.05

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


Key information


Fund type Open end Category Income Fund Scheme Fund launch date 26 August, 2002 Net Assets (PKR mn) 2,182.57 NAV (PKR) 96.37 Benchmark BM IF # Management fee 0.75% (Exclusive of SST & FED) Front-end Load 1.00% Back-end Load NIL Pricing mechanism Forward Trustee MCB Financial Services Ltd Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m. Auditor Grant Thorton Anjum Rahman & Co Risk profile Low To Medium Listing PSX Fund stability rating (PACRA) A+ (f) Leverage NIL Management Quality Rating AM2 by JCR-VIS Entity Rating A+ (Long Term), A1 (Short Term) by PACRA Investment Committee Members Mr. Hasnain Raza Nensey - CEO Mr. Zahid Ullah Khan - CIO Mr. Khawar Iqbal - CFO Mr Asim Ilyas - Fund Manager Mr. Syed Ali Turab Alvi-CSO Mr. Yousuf Muhammad Farooq - Head of Research


FY18 6.02

6.02 6.14 -0.13

3Y 8.59 7.86 0.73

5Y 9.86 10.04 (0.18)

1

Launch 14.53 16.27 (1.74)


FY17 13.78 5.72 7.13 5.17 9.04 6.66 5.32 4.82 5.75 4.10 6.17 8.03 7.04 6.27 0.76

FY16 11.50 5.82 3.69 3.31 5.95 6.58 3.76 9.81 6.23 0.86 11.44 4.86 6.33 6.70 -0.37

FY15 7.44 9.04 9.55 8.90 14.85 20.84 16.64 7.55 5.65 17.17 2.59 1.75 10.65 9.35 1.30

1

FY14 4.86 6.71 -0.15 5.81 12.33 7.77 10.36 7.29 12.38 13.93 -0.41 8.34 7.67 10.30 -2.63



#

The performance benchmark of the Fund shall be 'Average Return of Six (6) months KIBOR for any period of return. Effective from September 01 2016: Previously 40% 1Year PKRV rate + 60% 6M kibor.

Fund manager's review For the month of July 2017, JSIF yielded an annualized return of 6.02% as compared to the benchmark of 6.14%, underperforming by 13basis points. During the month, no variation in the exposure towards TDRs and maintained the weighted average maturity of the fund on the lower end. Going forward, we will rebalance the allocation towards spread transactions at comparable better rates and other investment avenues that can generate consistently higher returns for our investors

Jul-17 72.16 16.09 0.46 7.24 2.41 1.64 100.00

Cash Placement with Banks and DFIs Equity* T Bills PIBs TFCs / Sukkuks MTS / Spread Transactions Other including receivables Total

Jun-17 65.84 16.56 0.43 7.25 9.92 100.00

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

List of TFC/Sukuks Holdings (%) Non Compliant Investments under Circular 07/2009 Name of Investment Azgard Nine Azgard Nine Agritech Ltd. Agritech Ltd.

Type

Provision held (if any)

Value after provision

% of Net Assets

% of Gross Assets

a

TFC

6,661,110

(6,661,110)

-

-

-

b

PPTFCs

31,980,766

(31,980,766)

-

-

-

c

Sukuk

59,572,782

(59,572,782)

-

-

-

-

-

-

d

Dewan Cement Azgard Nine

Value before provision

PPTFC e

f

TFC

50,000,000

PPTFC

(49,990,000)

-

-

10,000 -

0.00 -

Fund 4.3% 0.11% 0.05 0.39

BM 1.0%


A A-2 9.34% 6.56%

AA 19.49%

A-3 4.53% AAA 2.95%

-

Statistical analysis Standard Deviation Expense Ratio* Duration (Yr) WAM (Yr)

Asset quality (%age of total assets)

0.00

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

Fund 3.7% -10.3% 92.8%

BM 1.2% 0.0% 100.0%

Jul-17 3.16 2.95 1.14

Ghani Gases Ltd Byco Petroleum Pakistan Ltd. NRSP Microfinance Bank

A7.39%

A+ 45.22%


Disclosure for Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 2,495,679/-. If the same were not made the NAV per unit/return of scheme would be higher by Rs. 0.11/0.11%. For details investors are advised to read the Note 11.1 of the latest Financial Statements of the Scheme. 1

Annualized performance return is based as per MUFAP stated methodology.

* For FY18

10

JS Islamic Government Securities Fund (JS IGSF) July 2017 MUFAP Recommended Format


2

Performance (%)

JS Islamic Government Securities Fund (JS IGSF) is an open end 'Shariah Compliant Sovereign Income Scheme' which aims at generating a stable stream of current HALAL income while ensuring low risk (volatility) and capital preservation in the medium to long term by investing primarily in Shariah Compliant Government Securities.


1M -4.64 4.09 -8.73


6M 2.35 4.14 -1.79

1Y 2.80 4.19 -1.39

2Y 3.27 9.77 -6.50

Launch 5.79 6.73 -0.94

Key information Fund type Category Fund launch date Net Assets (PKR mn) NAV (PKR)

Open end Shariah Compliant Income Scheme 5 June, 2013 106.99 101.16

Benchmark # Management fee Front-end Load Back-end Load Pricing mechanism Trustee Dealing Days & Cut-off time Auditor Shariah advisor Risk profile Listing Fund stability rating (PACRA) Leverage Management Quality Rating Entity Rating Investment Committee Members Mr. Hasnain Raza Nensey - CEO Mr. Zahid Ullah Khan - CIO Mr. Khawar Iqbal - CFO Mr. Syed Ali Turab Alvi-CSO Mr Asim Ilyas - Fund Manager

BM IGSF1 0.75% (Exclusive of SST & FED) 1.00% NIL Forward MCB Financial Services Ltd (Monday to Friday) 3:00 p.m. KPMG Taseer Hadi & Co. M/s. Al Hilal Shariah Advisors (Pvt) Limited Low to Medium PSX AA- (f) NIL AM2 by JCR-VIS A+ (Long Term), A1 (Short Term) by PACRA


FY18 -4.64

-4.64 4.09 -8.73


FY17 4.22 4.20 4.69 9.15 9.62 -6.16 -2.06 -0.13 -1.95 1.90 2.41 16.77 3.58 4.21 -0.63

FY16 4.58 3.98 -0.12 2.33 1.56 6.75 -1.27 3.34 7.50 4.03 6.06 4.33 3.66 5.49 -1.83

FY15 2.42 3.13 4.26 6.45 5.54 5.80 12.25 5.95 8.08 7.13 7.42 4.05 6.22 7.62 -1.41

2

FY14 6.83 6.91 7.88 6.81 12.54 9.47 6.55 11.28 13.07 6.10 10.17 4.19 8.80 7.16 1.64


Asset allocation (%age of total assets)

Mr. Yousuf Muhammad Farooq - Head of Research #

Due to unavailability of benchmark as per SECP Direction No.27 of 2016, we have used previous month methodology for the working of benchmark of this month.

Jul-17 26.00 72.44 1.56 100.00

Cash Placement with Banks and DFIs TFCs / Sukkuks Other including receivables Total

Jun-17 27.74 70.76 1.50 100.00

Fund manager's review

The fund recorded annualized return of negative 4.64% for the month of July 2017, as compared to the benchmark return of 4.09% underperforming by negative 8.73%.

Asset quality (%age of total assets) AAA 72.44%

The underperformance is mainly attributable to significant decline across GOP Ijara Sukuk prices while fund only has exposure in the floater Sukuk on the back of market expectations toward bottoming of interest rates. However, we expect demand for floater as compared to the fixed GOP Ijara will remain on the higher side going forward while lack of availability will increase prices once again in near future.

AA+ 0.35%

A+ 18.84% AA 6.81%

* Govt. securities (72.44)%)

Sukuks allocation - Top Ten Holding

125.0% 100.0% 75.0%

72.44%

50.0% 25.0% 0.0%


Statistical analysis Standard Deviation Expense Ratio* WAM (Yr) * For FY18

GoP Ijara Sukkuks

Fund 1.3% 0.37% 1.00

BM 0.5%


Fund 1.4% -0.5% 86.3%

BM 0.7% 0.0% 100.0%

The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 1,681,193/-. If the same were not made the NAV per unit/return of scheme would be higher by Rs. 1.59/1.57%. For details investors are advised to read the Note 11.1 of the latest Financial Statements of the Scheme. 1.

The benchmark of the scheme shall be the average 6 month Placement (Deposit) rate of 3 Islamic Banks (including Islamic windows of Commercial Banks)

2.

Annualized return is based as per MUFAP stated methodology.

11

JS Capital Protected Fund V (JSCPF_V) July 2017 MUFAP Recommended Format

Investment philosophy JS Capital protected Fund V aims at protecting investor capital through the investment structure by placing 88% of the Fund’s Deposited property as term deposit(s) with Bank Alfalah Limited, having rating of “AA” with a positive outlook (Capital Protected Portion). The remaining Investment Portion of the Fund shall be invested in equity market or any other Authorized Investment instrument.

Performance (%) Fund Benchmark Difference

1M 6M 0.31 1.75 1.33 3.34 -1.02 -1.59

1Y 6.26 7.43 -1.17

2Y n/a n/a n/a

Launch 6.15 7.95 -1.80

Avg. Ann.* 5.23 6.76 -1.52


Key information Fund type Category Fund launch date Net Assets (PKR mn) NAV (PKR) Benchmark Management fee Front-end Load Back-end Load Contingent Load Pricing mechanism Trustee Dealing Days & Cut-off time Auditor Risk profile Listing Leverage Capital Protection Rating Management Quality Rating Investment Committee Members Mr. Hasnain Raza Nensey - CEO Mr. Zahid Ullah Khan - CIO Mr. Khawar Iqbal - CFO


Open end Capital Protected Scheme 30 May, 2016 268.52 102.01


BM1 1.00% (Exclusive of SST & FED) 1.00% NIL Up to 2.0% of NAV during the first 12 months and three weeks Up to 1.0% of NAV during the last 12 months and three weeks Forward MCB Financial Services Limited (Monday to Friday) 3:00 p.m. Grant Thornton Anjum Rahman Chartered Accountants Very Low PSX NIL CP2+ (CP Two plus) by PACRA AM2 by JCR-VIS

0.31 1.33 -1.02

FY17 -0.20 0.83 0.91 -0.08 0.97 0.83 0.89 0.24 0.42 0.63 0.40 -0.26 5.71 6.37 -0.66

FY16 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0.10 0.10 0.15 -0.05


Mr. Syed Ali Turab Alvi-CSO Mr. Yousuf Muhammad Farooq - Head of Research Mr. Syed Sanakhawan - Fund Manager

Fund manager's review During the month, your fund returned 0.31 percent underperforming the benchmark by 1.02 percent. Your fund manager is focused on providing superior risk adjusted returns designated time period. Your Fund manager views the economy favorably positioned the portfolio is a manner to benefit from improved economic activity in both in macro and micro data. Your Fund manager is cognizant of the risks investing and is actively monitoring risk that could erode performance.

FY18 0.31

over the and has reflected of equity

I would like to take this opportunity to reiterate our gratitude for your confidence in JS Investments and in JS Capital Protected Fund in particular, nothing means more to us than your trust in us and we are obliged and humbled to be your investment advisor.

Asset allocation (%) Cash Equity TDR Placement with Banks and DFIs Total

Jul-17 1.73 6.34 1.28 90.64 100.00

Jun-17 0.65 6.31 0.82 92.21 100.00

Jul-17 1.95 1.29 0.99 0.64 0.53 0.96 6.34

Jun-17 1.97 1.15 1.06 0.63 0.51 1.00 6.31

Equity sector breakdown (%) Cable & Electrical Goods Oil & Gas Exploration Companies Automobile Assembler Engineering Glass & Ceramics Others Total

Top holding (%age of total assets) Pak Elektron Ltd. Mari Petroleum Co. Ltd. Indus Motor Co. Ltd. Aisha Steel Mills Singer Pakistan Ltd. Tariq Glass Industries Ltd. Synthetic Products Enterprises Ltd. D. G. Khan Cement Co. Ltd. Pakistan State Oil Co. Ltd. Pak Suzuki Motor Co. Ltd. 1

1.41 1.29 0.74 0.64 0.54 0.53 0.37 0.30 0.29 0.25

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

“A statement on the specific terms of capital protection (e.g. capital protection only applies to unit holders who hold their investments until the maturity date)”

Statistical analysis Standard Deviation Expense Ratio*

* For FY18

Fund 1.5% 0.19%


Fund 0.6 1.0% -0.3% 80.0%

BM 1.0 1.3% 0.0% 93.3%

“The guarantee is subject to the credit risk of the guarantor and it does not give any assurance to the future solvency of the guarantor”

Disclosure for Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 321,382/-. If the same were not made the NAV per unit/return of scheme would be higher by Rs. 0.12/0.12%. For details investors are advised to read the Note 11.1 of the latest Financial Statements of the Scheme.

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JS Pension Savings Fund (JS PSF) July 2017 MUFAP Recommended Format


Performance (%)

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

Equity Sub Fund

Key information

Debt Sub Fund 1 MM Sub Fund

1

1M 0.12 3.86 4.53

1Y 36.42 4.32 3.87

3Y 75.50 21.37 15.87

July August September October November December January February March April May June YTD

Equity FY18 FY17 0.12 3.67 3.10 6.25 -1.66 8.43 9.81 2.96 0.49 0.89 3.81 5.20 -6.81 0.12 41.25

Launch 473.99 129.45 85.43 1


Fund type Open end Category Pension Savings Fund Fund launch date 26 June, 2007 Benchmark n/a Management fee 1.50% (Exclusive of SST & FED) Front-end Load 3.00% Back-end Load NIL Pricing mechanism Forward Trustee Central Depository Company of Pakistan Ltd. Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m. Auditor KPMG Taseer Hadi & Co Risk profile Investor dependent Leverage NIL Management Quality Rating AM2 by JCR-VIS Entity Rating A+ (Long Term), A1 (Short Term) by PACRA Investment Committee Members Mr. Hasnain Raza Nensey - CEO Mr. Zahid Ullah Khan - CIO Mr. Khawar Iqbal - CFO Mr. Syed Ali Turab Alvi-CSO Mr. Syed Sanakhawan - Fund Manager Mr. Yousuf Muhammad Farooq - Head of Research

5Y 380.28 40.56 37.44


Debt 1 FY18 FY17 3.86 7.38 3.43 3.25 0.59 4.23 3.61 13.90 3.30 3.80 3.22 4.14 3.36 3.86 4.63

MM 1 FY18 FY17 4.53 10.72 3.03 3.47 0.72 6.91 3.46 12.87 2.49 3.91 0.79 2.88 0.40 4.53 4.42



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

265.23 161.72 118.16

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

573.94 229.43 185.41

Fund manager's review The Debt and Money Market Sub Fund recorded a return of 3.86 percent p.a. and 4.53 percent p.a. respectively for the month of July, 2017. The weighted average maturities of both funds were on the lower side as the market expected the interest rate to bottom out. Your Fund returned 0.12% during the outgoing month, which was marked by heightened political uncertainty. We continue to view the economic fundamentals, especially the demand supply story, as robust. We have reduced exposure by consolidating the portfolio as the market recovered from its lows. We intend to further increase exposure in our top holdings while looking for better risk/reward ratios to add new positions. We have recently increased exposure in Engineering via Ittefaq Iron Industries which we think provides growth at a reasonable price. I would like to take this opportunity to reiterate our gratitude for your confidence in JS Investments and in JS Pension Saving Fund in particular, nothing means more to us than your trust in us and we are obliged and humbled to be your investment managers.

Equity Cash Equity Other including receivables Total Debt Cash Equity* TFCs / Sukkuks T Bills & PIBs Other including receivables Total Money Market Cash Placement with Banks Equity* T Bills Other including receivables Total

Jul-17 7.62 87.36 5.02 100.00 Jul-17 15.14 0.15 84.61 0.10 100.00 Jul-17 32.17 1.05 66.22 0.55 100.00

Jun-17 4.90 94.72 0.38 100.00 Jun-17 9.85 0.14 89.93 0.08 100.00 Jun-17 33.44 1.00 65.00 0.56 100.00

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

Equity sector breakdown (%) Engineering Cable & Electrical Goods Textile Composite Automobile Assembler Oil & Gas Exploration Companies Others Total

Jul-17 11.81 11.08 8.91 7.63 7.50 40.43 87.36

Jun-17 5.27 10.91 7.24 7.42 5.20 58.67 94.72

Top holding (%age of total assets)

Disclosure for Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 2,397,814/-. If the same were not made the NAV per unit/return of scheme would be higher by Rs. 4.10 (ESF), Rs. 0.43(DSF), Rs. 0.32 (MMF) / 0.71% (ESF), 0.19% (DSF), 0.17% (MMF). For details investors are advised to read the Note 8.1 of the latest Financial Statements of the Scheme.

1


Mari Petroleum Co. Ltd. Pak Elektron Ltd. Nishat Mills Ltd. Century Paper & Board Mills Ltd. International Industries Ltd. Thal Ltd. Shifa International Hospitals Ltd. Indus Motor Co. Ltd. Ittefaq Iron Industries Ltd. Agriautos Industries Ltd.

7.50 7.14 7.02 5.39 4.96 4.87 4.78 4.71 4.58 3.98

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VPS - SHARIAH COMPLIANT FUND

JS Islamic Pension Savings Fund (JS IPSF) July 2017 MUFAP Recommended Format

Performance (%)

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

Key information

Equity Sub Fund Debt Sub Fund 1 MM Sub Fund

1

1M -0.54 -6.23 -0.90

1Y 31.33 3.88 3.51

3Y 83.79 12.91 11.67

July August September October November December January February March April May June YTD

Equity FY18 FY17 -0.54 4.52 3.09 7.76 -3.66 10.64 7.42 3.64 -1.11 2.01 4.49 2.34 -7.14 -0.54 38.01

Launch 685.65 94.77 68.70 1


Fund type Open end Category Shariah Compliant Voluntary Pension Scheme Fund launch date 16 June, 2008 Benchmark n/a Management fee 1.50% (Exclusive of SST & FED) Front-end Load 3.00% Back-end Load NIL Pricing mechanism Forward Trustee Central Depository Company of Pakistan Ltd. Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m. Auditor KPMG Taseer Hadi & Co Shariah advisor M/s. Al Hilal Shariah Advisors (Pvt) Limited Risk profile Investor dependent Leverage NIL Management Quality Rating AM2 by JCR-VIS Entity Rating A+ (Long Term), A1 (Short Term) by PACRA Investment Committee Members Mr. Hasnain Raza Nensey - CEO Mr. Zahid Ullah Khan - CIO Mr. Khawar Iqbal - CFO Mr. Syed Ali Turab Alvi-CSO Mr. Syed Sanakhawan - Fund Manager Mr. Yousuf Muhammad Farooq - Head of Research

5Y 317.59 28.95 26.19


Debt 1 FY18 FY17 -6.23 8.31 4.94 4.57 8.07 14.20 -2.19 8.66 0.00 -1.57 1.07 2.06 12.57 -6.23 5.17

MM 1 FY18 FY17 -0.90 2.96 2.73 3.11 5.08 6.92 1.25 9.45 1.71 0.49 2.39 2.52 6.71 -0.90 3.85



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

191.46 71.57 53.39

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

788.91 195.59 169.41

Fund manager's review In the month of July, 2017, JS Islamic Pension Savings Debt Sub Fund and Money Market Sub Fund delivered returns of negative 6.23 percent p.a. and 0.90 percent p.a. respectively. During the month the underperformance is mainly attributable to decline across GOP Ijara Sukuk prices. Your Fund returned negative 0.54% return mainly led by political noise surrounding JIT. We entire towards the economy, especially the robust demand side story, In order to consolidate th portfolio we reduce the overall equity exposure as the market recovered from its lows. We have increase exposure in Engineering I would like to take this opportunity to reiterate our gratitude for your confidence in JS Investments and in JS Islamic Pension Saving Fund in particular, nothing means more to us than your trust in us and we are obliged and humbled to be your investment advisor.

Equity Cash Equity Other including receivables Total Debt Cash IJARA Sukuk Bond Other including receivables Total Money Market Cash IJARA Sukuk Bond TDR Other including receivables Total

Jul-17 5.77 85.42 8.81 100.00 Jul-17 24.46 74.07 1.46 100.00 Jul-17 44.28 35.56 18.48 1.67 100.00

Jun-17 5.70 93.80 0.50 100.00 Jun-17 21.78 77.09 1.13 100.00 Jun-17 45.74 34.91 17.99 1.37 100.00

Jul-17 10.12 9.75 9.47 6.95 6.84 42.31 85.42

Jun-17 11.70 9.84 4.19 5.04 6.59 56.43 93.80

Equity sector breakdown (%) Miscellaneous Cable & Electrical Goods Engineering Oil & Gas Exploration Companies Textile Composite Others Total

Top holding (%age of total assets)

Disclosure for Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 1,481,321/-. If the same were not made the NAV per unit/return of scheme would be higher by Rs. 5.36 (ESF), Rs. 0.35 (DSF), Rs. 0.22 (MMF) / 0.68% (ESF), 0.18% (DSF), 0.13% (MMF). For details investors are advised to read the Note 8.1 of the latest Financial Statements of the Scheme. 1

Mari Petroleum Co. Ltd. Nishat Mills Ltd. Pak Elektron Ltd. Synthetic Products Enterprises Ltd. Thal Ltd. Shifa International Hospitals Ltd. Pakistan National Shipping Corporation Ltd. HinoPak Motors Ltd. Packages Ltd. International Industries Ltd.

6.95 6.84 6.73 5.43 4.97 4.69 4.57 4.42 4.20 3.87


14