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 S L A M I C P R E M I U M 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: (92-21)111-222-626 Fax: (92-21) 35165540 E-mail:info@jsil.com
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
Grant Thornton Anjum Rahman, 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
Shariah Advisors
Al - Hilal Shariah Advisors (Pvt) Limited
HALF YEARLY REPORT 2023 05
Better Investments for a Better Future!
DIRECTORS' REPORT TO THE UNIT HOLDERS
The Board of Directors of JS Investments Limited has pleasure in presenting to you the un-audited Financial Statements of JS Islamic Premium 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 19.89% for the half year ended December 31, 2023, against benchmark return of 10.91%. Net Assets of the fund are PKR 480.96 million as at December 31, 2023. The total expense ratio (TER) of the Fund is 1.09% which includes 0.16% of government levies on the Fund.
Dividend
The Fund paid an interim dividend of Rs 1.05 per unit for the half year ended December 31, 2023.
06 HALF YEARLY REPORT 2023
Better Investments for a Better Future!
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, Stability Rating of A(f) with a 'stable outlook' has been assigned 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
Better Investments for a Better Future!
TRUSTEE REPORT TO THE UNIT HOLDERS
REPORT OF THE TRUSTEE TO THE UNIT HOLDERS JS ISLAMIC PREMIUM FUND
Report of the Trustee Pursuant to Regulation 41(h) of the Non-Banking Finance Companies and Notified Entities Regulations, 2008
JS Islamic Premium 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 approved by the Securities and Exchange Commission of Pakistan on February 08, 2023 whereas the date of execution of the Trust Deed was May 29, 2023.
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JS Investments Limited, the Management Company of JS Islamic Premium Fund has, in all material respects, managed JS Islamic Premium Fund during the period ended December 31st,
2023 in accordance with the provisions of the following: - Investment limitations imposed on the Asset Management Company and the Trustee under the trust deed and other applicable laws;
- the valuation or pricing is carried out in accordance with the deed and any regulatory requirement;
- the creation and cancellation of units are carried out in accordance with the deed;
- and any regulatory requirement.
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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. - 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. - 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
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JS Investments Ltd. published this content on 01 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 March 2024 11:12:14 UTC.