JS Investments : Financial Statement Half Yearly JSIF 2023

Better Investments for a Better Future!

H A L F Y E A R L Y R E P O R T

D E C E M B E R 3 1 , 2 0 2 3

J S I N C O M E F U N D

CONTENTS

Vision	03
Mission	04
Company Information	05
Directors' Report to the Unit Holders	06
Trustee Report to the Unit Holders	08
Independent Auditor's Review Report to the Unit Holders	09
CONDENSED INTERIM FINANCIAL STATEMENTS	10
Condensed Interim Statement of Assets and Liabilities	11
Condensed Interim Income Statement	12
Condensed Interim Statement of Comprehensive Income	13
Condensed Interim Statement of Cash Flows	14
Condensed Interim Statement of Movement in Unit Holders' Fund	15
Notes to the Condensed Interim Financial Statements	16

To be the preferred choiceVISION of every investor, offering

diverse and innovative investment solutions

MISSION

To establish a leadership position in bringing more investable asset classes and innovative products, while managing them with prudence and excellence

Better Investments for a Better Future!

COMPANY INFORMATION

Management Company

JS Investments Limited

19th Floor, The Centre, Plot # 28, SB-5 Abdullah Haroon Road, Saddar, Karachi-75600

Tel: [phone] Fax: [phone] E-mail:[e-mail]

Website: www.jsil.com

Board of Directors

Mr. Suleman Lalani	Non-Executive Director / Chairman
Ms. Iffat Zehra Mankani	Chief Executive Officer
Mr. Hasan Shahid	Non-Executive Director
Mr. Mirza M. Sadeed H. Barlas	Non-Executive Director
Mr. Atif Salim Malik	Non-Executive Director
Ms. Aisha Fariel Salahuddin	Non-Executive Independent Director
Ms. Mediha Kamal Afsar	Non-Executive Independent Director
Mr. Farooq Ahmed Malik	Non-Executive Independent Director

Chief Executive Officer

Ms. Iffat Zehra Mankani

Chief Financial Officer

Mr. Raheel Rehman

Chief Investment Officer

Mr. Syed Hussain Haider

Chief Operating Officer & Company Secretary

Mr. Muhammad Khawar Iqbal

Statutory Auditors

A.F Ferguson & Co. Chartered Accountants

Legal Advisors

Bawaney and Partners

3rd & 4th Floor, 68-C,Lane-13 Bokhari Commercial Area Phase-VI DHA, Karachi

Audit Committee

Ms. Mediha Kamal Afsar (Chairperson)

Mr. Hasan Shahid (Member)

Mr. Mirza M. Sadeed H. Barlas (Member)

Trustee

Digital Custodian Company Limited 4th Floor, Perdesi House

2/1, R-Y-16, Old Queens Road, Karachi - 75530

HALF YEARLY REPORT 2023 05

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DIRECTORS' REPORT TO THE UNIT HOLDERS

The Board of Directors of JS Investments Limited has the pleasure of presenting the unaudited Financial Statements of JS Income Fund (the Fund) for the half year ended December 31, 2023.

Economy Review:

During FY23, Pakistan's economy faced severe shocks from floods, Geo-political tensions escalating commodity prices, tightening financing conditions, and policy setbacks, leading to stalled growth, surging inflation, depleted reserves, and acute fiscal pressures. However, during 1HFY24 the country transitioned from a rhetoric of default with no visible solutions toward reform implementation, sustainable policies, and reinforcing external accounts. Guided by SIFC and IMF directives, this shift reoriented the outlook from potential default to sustained growth, signaling an optimistic turn and leaving the worst economic challenges behind.

Asset sales under SIFC are expected to help prevent a significant decline in FX reserves, supported by reforms in the energy sector and SOEs, creating fiscal space. Concurrently, the anticipated influx of FDI is poised to address the country's gross financing needs, bolstering Pakistan's economic stability and growth. In FY24, GDP growth is projected at 2.5%, driven by the post-flood recovery in the agriculture sector. Additionally, sustained policies, effective reforms, and substantial financial support remain pivotal to long-term growth.

The financial inflows under the SIFC asset sale and the IMF program will bolster exchange rate stability, playing a pivotal role in curbing inflation by maintaining a stable PKR. During 1HFY24, the average inflation was recorded at 28.8%, compared to 25.04% in the corresponding period last year. Moving forward monetary policy to remain tightly linked to the external account and inflation outlook while contractionary measures will remain the central theme on the fiscal side.

Income & Money Market Review:

Money managers strategically focused on the shorter end of the yield curve in 1HFY24, amid high inflation and the resultant tight monetary stance. However, towards the end of the period, the indications of easing inflationary pressures, a notable shift in strategy emerged, increasing exposure towards longer-term instruments in anticipation of prospective rate adjust- ments.

This shift in money managers' strategy aligns with the broader economic landscape, where monetary policy is poised to closely track the country's external accounts and inflation outlook. The inflation is expected to slow down towards the end of FY24, mainly due to the high base effect, contained aggregate demand, easing supply constraints, and moderation in international commodity prices. However, this slowdown could be countered by the potential currency devaluation and further increases in gas/energy tariffs. Looking ahead, the strategic approach would entail maximizing returns through greater allocation to longer-tenure instruments.

Review of Fund Performance

The Fund's annualized return was 20.09% for the half year ended December 31, 2023, against the benchmark return of 22.53%. Net Assets moved from PKR 942.19 million (June 30, 2023) to PKR 5,864.83 million as of December 31, 2023. The total expense ratio (TER) of the Fund for the half year ended December 31, 2023, is 2.64%, which includes 0.23% of government levies on the Fund.

06 HALF YEARLY REPORT 2023

Better Investments for a Better Future!

Fund and Asset Manager Rating

Pakistan Credit Rating Agency Limited (PACRA) has maintained Management Company's asset manager rating of 'AM2+' with a 'stable outlook' to JS Investments Limited. This rating underscores our dedication to maintaining high-quality management standards, reflecting positively on the overall performance and outlook of our operations. Further, PACRA has also maintained Stability rating of 'A+(f)' with stable outlook to the Fund.

Acknowledgment

The directors express their gratitude to the Securities and Exchange Commission of Pakistan and Digital Custodian Company Limited for their valuable support, assistance and guidance. The Board also thanks the employees of the Management Company for their dedication and hard work and the unit holders for their confidence in the Management.

Director	Chief Executive Officer
	Iffat Zehra Mankani

February 20, 2024

Karachi

HALF YEARLY REPORT 2023 07

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TRUSTEE REPORT TO THE UNIT HOLDERS

REPORT OF THE TRUSTEE TO THE UNIT HOLDERS

JS INCOME FUND

Report of the Trustee Pursuant to Regulation 41(h) of the Non-Banking Finance Companies and Notified Entities Regulations, 2008

JS Income Fund, an open-end scheme established under a trust deed executed between JS Investments Limited as the Management Company and Digital Custodian Company Limited as the Trustee. The Trust Deed was executed on July 18, 2002 and was approved by the Securities and Exchange Commission of Pakistan on August 22, 2002.

1. JS Investments Limited, the Management Company of JS Income Fund has, in all material respects, managed JS Income Fund during the period ended December 31st, 2023 in accordance with the provisions of the following:
2. 1. Investment limitations imposed on the Asset Management Company and the Trustee under the trust deed and other applicable laws;
   2. the valuation or pricing is carried out in accordance with the deed and any regulatory requirement;
   3. the creation and cancellation of units are carried out in accordance with the deed;
   4. and any regulatory requirement.
3. Statement on the shortcoming(s) that may have impact on the decision of the existing or the potential unit holders remaining or investing in the Collective Investment Scheme; and
   Statement
   No short coming has been addressed during the period ended December 31st, 2023.
4. Disclosure of the steps taken to address the shortcoming(s) or to prevent the recurrence of the short coming(s).
   Disclosure of the steps
   We have critically examine the fund in accordance with circular, directives, NBFC Regulations 2008 and its constitutive documents. However, no shortcoming has been addressed.
5. Trustee's opinion regarding the calculation of the management fee, CIS Monthly Fee Payable to the Commission and other expenses in accordance with the applicable regulatory framework.

Trustee Opinion

"The Management fee, CIS monthly fee payable to the Commission and other expenses has been accurately calculated in accordance with the NBFC Regulations, 2008 and its constitutive documents".

		Dabeer Khan
		Manager Compliance
Karachi: February 26, 2024	Digital Custodian Company Limited

08 HALF YEARLY REPORT 2023

Better Investments for a Better Future!

AUDITOR REPORT TO THE UNIT HOLDERS

HALF YEARLY REPORT 2023 09

CONDENSED INTERIM

FINANCIAL STATEMENTS