Market Review - JS Investments · Market Review November 2016 ECONOMY Headline inflation registered...

Market Review November 2016

ECONOMY Headline inflation registered a rise of 3.8% YoY for November 2016 compared to 4.2% YoY recorded in October 2016. On a MoM basis CPI recorded an increase of 0.3%. The sequential rise resulted from food inflation up by 0.2% MoM while other basket components remained relatively muted. State Bank of Pakistan reported 1.2% YoY rise in foreign remittances during October 2016 to clock in at USD 1,560mn compared to USD 1,541mn last year. This translates to a 3.8% YoY drop in remittances during 4MFY17 compared to the same period last year. In November 2016, foreign reserves dipped by 1.7%MoM to stand at USD 23.6bn owing to external debt servicing and other financial outflows. Current account deficit (CAD) for 4MFY17 clocked in at USD 1,762mn scaling up by USD 684mn against a deficit of 1,078mn in the same period last year. This was attributable to import bill maintaining levels (up 2% YoY) while exports depicted a 3% YoY decline on the back of suppressed commodity prices in the international market. Weakened remittances (down 4% YoY) also contributed to bleak current account position. Going forward, decision by OPEC countries to reduce output by 1.2mbpd is expected to weigh in on the country’s inflation trajectory and current account position. However flows from multilateral agencies and foreign direct investment are likely to support the country’s external position. MONEY MARKET REVIEW In November, the State Bank of Pakistan borrowed funds worth PKR 591.874bn in the two T-bill auction against the month target of 500bn while maturity of PKR 489.375bn and the cut off yield for 3, 6 and 12 month averaged at 5.9463%, % 5.9440%and 5.9485% respectively. Furthermore, SBP rejected the PIB auction while market participation skewed towards three years PIBs at comparable higher rates which indicates market participants’ expectation regarding reversal of yield curve and received no bids in 20 years maturity. Going forward the possible reversal of inflation trajectory provide little room for downward adjustment of policy rate. During the month SBP in its bi-monthly monetary policy maintained the policy rate at 5.75% on the back of stable macroeconomic factors, accumulation of foreign reserves and inflationary pressures remained well restricted. EQUITY MARKET REVIEW Setting a new milestone, KSE-100 index crossed 43,000 levels for the first time during the month of Nov-16.KSE-100 gained 6.8% in Nov’16 – its best monthly performance since Apr’15; Average daily volume increased by 9% MoM to clock in at 489mn shares, while average daily traded value also swelled to USD156mn (up17% MoM). As far as activity is concerned, major foreign outflow was witnessed in Cements (USD25.6mn), Banks (USD14.5mn), Fertilizer (USD7.8mn), Textile (USD7.7mn) and Power (USD6.0mn) respectively, while meager inflows toward Technology (USD0.7mn) were recorded. However, local investors showed optimism turning out as major buyers during the month. In this regards, Mutual Funds bought USD78mn of shares, followed by Individuals (USD68mn), NBFCs (USD23mn) and Companies (USD11mn), respectively. While side-board stocks continued to dominate the trading in Nov-16. On Sectors’ front, Construction (+15.9%), Textiles (+9.7%), Pharma (+9%), Chemicals (+8%) & Automobiles (+7.9%) turned out as outperformers, while Banks (+4.6%) and Electricity (+1.7%) remained laggards during the period.

Monthly YoY Inflation

0.0%

4.0%

8.0%

12.0%

16.0%

Apr

-12

Oct

-12

Apr

-13

Oct

-13

Apr

-14

Oct

-14

Apr

-15

Oct

-15

Apr

-16

Oct

-16

Interbank rates KIBOR (Average) Nov ’16 vs. Oct ’16

6.25

6.07

6.09

6.37

6.40 6.

50 6.60

6.23

6.03

6.05

6.34

6.37 6.45 6.

56

5.50

6.00

6.50

7.00

7.50

8.00

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

November '16 October '16

Market activity Daily volume vs. KSE-30 movement

22,300 22,400 22,500 22,600 22,700 22,800 22,900 23,000 23,100 23,200 23,300

-

20

40

60

80

100

120

140

1-Nov 7-Nov 11-Nov 17-Nov 23-Nov

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

Unit Trust of Pakistan (UTP) November 2016

MUFAP Recommended Format

Investment philosophy UTP is a balanced fund that aims to preserve and grow investor’s capital in the long term while providing a regular stream of current income on an annual basis. The fund operates a diverse portfolio of equity and fixed income investments whereby the equity component is meant to provide the growth in capital while dividends on the equity component along with the fixed income investments help generate the current income. Key information Fund type Open endCategory Balanced SchemeFund launch date 27 October, 1997Net Assets (PKR mn) 1,530.26NAV (PKR) 173.15Benchmark BM #Management fee 2.00% (Exclusive of SST & FED)Front-end Load 3.00%Back-end Load NILPricing mechanism Forward Trustee Central Depository Company of Pakistan Ltd.Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor KPMG Taseer Hadi & Co.Risk profile MediumListing PSXLeverage NILManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive Officer Mr. Zahid Ullah Khan - CIO / Fund ManagerMr. Khawar Iqbal - Chief Financial Officer Mr. Yousuf Muhammad Farooq - Head of Research

Fund manager's review Your fund has returned 5.75 percent during the month and outperformed its benchmark index by 2.78 percent. Since YTD, your fund has returned 11.59 percent or an average of 2.32 percent for every month since July 2016. Equivalently, the benchmark index returned 4.72 percent or 0.94 percent per month since July 2016. During the month, your fund manager increased equity exposure from 61 percent to 70 percent, approximately. The exposure enhancement was not only into the existing holdings, but new stocks were also added to the portfolio of holdings. Primarily, your fund manager focused on prevailing valuations and looked for any bargains in the market. A part of your investment was dedicated to the strategy of taking benefit of expected appreciation in the oil prices contingent on OPEC's decision of a reduction in their existing production quantities. You must have overheard this issue in the news and noticed the indecisiveness that international oil markets were going through. This strategy was adopted during the previous month (October 2016) and positions were held throughout November. However, given the expected volatility of this strategy then, your fund manager decided to take a modest exposure towards it. As always happens, events follow events and now, the strategy has taken a different turn and clarity is being sought on the new (and higher) average oil price levels that might prevail around June 2017 contingent on a production enhancement response from shale oil production in the United States and an anticipation of renewal of sanctions on Iran. Both of these issues will likely limit the upside in international oil prices. Yours truly believes that the markets would remain nervous on both of these issues. Your fund manager does not engage in frequent trading and all investments are carried out if there is a conviction on the part of your fund manager and your fund's investment committee. This ensures that your fund does not incur any undue expenses and it also demonstrates that all your investments carry full conviction on part of your investment managers.

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

provision

Provision held

(if any)

Value after provision

% of Net Assets

% of Gross Assets

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

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

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

Fund 5.75 18.51 55.27 175.58 1788.34 16.62Benchmark 2.97 14.21 27.90 85.52 902.21 12.82Difference 2.78 4.30 27.37 90.06 886.13 3.80

* Average Annualized Return since inception as per Morning Star formula

Monthly performance (%) FY17 FY16 FY15 FY14 FY13

July 3.34 2.89 2.42 5.47 3.57August 1.82 -0.90 -6.41 -5.57 5.07September 3.28 -4.24 3.76 -0.66 -0.06October -2.91 5.66 3.43 2.44 1.64November 5.75 -2.36 5.31 6.40 4.01December 2.10 3.88 4.53 1.89January 0.99 4.50 1.18 2.37February -4.01 -1.95 -0.19 4.73March 2.85 -8.59 4.49 1.70April 2.25 8.55 4.07 1.64May 1.84 -2.10 1.18 9.46June 0.20 1.35 -1.36 -0.08YTD 11.59 6.98 13.52 23.56 42.01Benchmark 4.72 3.84 7.85 18.21 22.77Difference 6.87 3.14 5.67 5.35 19.24

Asset allocation (%) Nov-16 Oct-16

Cash 21.53 22.54 Placement with Banks and DFIs - - Equity 67.16 58.87 TFCs / Sukkuks 7.85 8.47 PIBs - - T Bills - - MTS / Spread Transactions 1.30 0.53 Other including receivables 2.16 9.59 Total 100.00 100.00

Asset quality (%age of total assets)

AA21.46%

AA+0.06%

A+0.00%

* Govt. securities (0.00%)

Equity sector breakdown (%) Nov-16 Oct-16

Commercial Banks 12.27 10.91 Cement 9.77 5.67 Oil & Gas Exploration Companies 6.25 6.58 Textile Composite 4.91 5.10 Insurance 4.68 3.60 Others 29.28 27.01 Total 67.16 58.87

Top holding (%age of total assets) Nishat Mills Ltd. 4.91 Adamjee Insurance Co. Ltd. 4.68 MCB Bank Ltd. 4.58 Pakistan National Shipping Corporation Ltd. 4.47 Cherat Cement Co. Ltd. 3.95 Kot Addu Power Co. Ltd. 3.81 Pakistan State Oil Co. Ltd. 3.52 Century Paper & Board Mills Ltd. 3.41 Pakistan Petroleum Ltd. 3.24 Synthetic Products Enterprises Ltd. 3.08

Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s liability to the tune of Rs. 31,865,820, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 3.61 / 2.1%. For details investors are advised to read the Note 9.1 of the latest Financial Statements of the Scheme. . However, from July 01, 2015 WWF is not being charged.

Statistical analysis Fund Fund BM

Information Ratio 0.07 Beta 0.5 1.0Correlation 0.49 Largest Month Gain 14.0% 19.3%Standard Deviation 14.6% Largest Month Loss -24.0% -33.8%Expense Ratio* 1.04% % Positive Months 72.1% 65.1%

* For FY17

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EME

JS Growth Fund (JS GF) November 2016


Investment philosophy

The main objective of JSGF is to enable the Certificate Holders to participate in a diversified portfolio of high quality equity securities listed on the stock exchanges and to maximize the investment return, by prudent investment management. Key information Fund type Open endCategory Equity SchemeFund launch date 06 June, 2006 *Net Assets (PKR mn) 2,508.34NAV (PKR) 203.09Benchmark 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 NILPricing mechanism Forward Trustee MCB Financial Services LtdDealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor Grant Thorton Risk profile HighListing PSXLeverage NILManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive Officer Mr. AAH Soomro, CFA, FRM - Fund ManagerMr. Zahid Ullah Khan - Chief Investment Officer Mr. Yousuf Muhammad Farooq - Head of ResearchMr. Khawar Iqbal - Chief Financial Officer

Fund manager's review Pakistan, on the other hand, is a small dot on the Global Markets. We very well can survive the 4 years of Trump-tronic IF chest-thumping of India simmers done in the wake of Mr. Trump's inclination towards India to counter China and his worry was of a common man’s over "nukes" of Pakistan. At historic low interest rates, coupled with CPEC related pouring of Chinese wealth, we can avoid rapid depreciation of currency as in the case of Egypt, Nigeria, Venezuela and Mexico. If only the Ministry of Finance decides to trade goods with China - with whom we have largest Trade deficit by the way - in Yuans instead of US Dollars, Pakistan is good to go. The rising once-stagnant middle class shall keep moving the needle. That said, complacency is beginning to emerge; in the absence of IMF's monitoring is leading to Fiscal imprudence that may ultimately increase Fiscal Deficit, Inflation, Interest Rate and undo the current projections of economic growth. Team Nawaz appears to be rejecting calls of PKR depreciation and in lieu, are offering bailout package to exports as mathematically, cost of increasing interest payment on dollar denominated debt is going to be less than any incentive offered to export-driven industries. Investment in "quality" education sector would be a great start for any new government especially in times when Oil Exporting Nations are facing a tough time and a probable, de-pegging of their currencies with dollar, is going to prompt many local Pakistanis to search of opportunities within their country because the worth of their earnings in Dirham’s/Riyals/Dinar is not going to be a great trade-off anymore. Take energy prices, for example. Oil bounced back from its lows and the latest decision of OPEC to cut - albeit marginally - supplies is going to keep Oil prices north of $50s. Coal has raced upwards owing to lack of domestic demand in China and new natural gas contracts are being liked to upward trending crude prices as well. Similarly, commodities - such as Zinc, Steel, Iron, Aluminum, Copper, Rubber - are all heading north after a prolonged bearish trend from 2011 to 2015. It just doesn't reflect rising demand but perhaps declining supplies and re-balancing of global demand and supply. Rising energy prices are going to start eating the profits of energy intensive, Cement, Steel, Glass, Textile sectors, respectively. While apart from Textile sector - which has external customers - the rising economic growth's driven domestic demand is going to nudge the revenues for Cement, Steel and Glass sector. Thus, as long as the music is being played and sales numbers of domestic cement consumption - the closest proxy of housing market - keep rising, your fund manager is continuing his bullish theme with admittedly, a lower level of confidence. Rising energy prices may lead to pressure of domestic currency, inflation and eventual interest-rate upticking but the impact of such control measures are years from now and going to be gradual. Not enough to warrant a significant U-turn on our thematic sector plays. Continuing our theme to search for the star-performers, we are diversify-ingly betting upon Oil Marketing Companies, such as Attock Petroleum and Pakistan State Oil, 30-40% growth in Heavy Commercial Vehicle Sales (HINO), a smaller car launch (PSMC), introduction of new products in booming auto sector (Thall Limited and AgriAutos), FFBL (multi-pronged growth from Coal Power, Urea production, Wind Power, Fauji Meat and Fauji Foods), IGI Insurance (splitting up of the insurance and long-sought investment portfolio). Interestingly, your fund manager has found two tremendous growth stories and have acquired a significant stake in Ghani Gases Limited (expansion of their under incorporation subsidiary of Ghani Chemicals to improve product portfolio and reduce energy costs) and Ghani Global Glass (forward vertical integration of setting up an Ampoule and Vials manufacturing plant). We believe these stories are at the cusp up turnaround and upon maturity the stake would be worth mani-folds in these much sought after businesses. Our long-held conviction bet in Cherat Cement has, in our opinion, done its duty of our investors and we have substantially reduced our over-allocation to the company - by the time this commentary goes public - that offers normal returns at current prices. We have enjoyed our ride and thank the management for enhancing shareholders return.





July 3.46 3.44 2.92 11.41 3.80August 3.45 -2.40 -9.21 -8.85 5.36September 3.02 -6.80 4.22 0.45 -0.71October 0.94 6.53 1.46 1.83 2.34November 10.55 -4.82 3.53 15.14 6.32December 3.81 8.28 4.63 1.24January -0.79 8.17 1.43 2.12February -4.46 -5.12 0.06 7.11March 4.74 -11.16 6.43 2.25April 3.49 11.54 3.18 3.00May 1.02 -2.67 1.78 14.87June 1.06 2.53 -1.28 -0.87YTD 23.04 3.88 12.42 40.12 56.91Benchmark 7.75 0.37 5.67 25.96 35.95Difference 15.29 3.51 6.75 14.16 20.96 Asset allocation (%)

Nov-16 Oct-16Cash 8.20 9.74Equity 88.81 88.62Other including receivables 2.99 1.64Total 100.00 100.00 Equity sector breakdown (%)

Nov-16 Oct-16Commercial Banks 18.87 19.99Insurance 15.08 14.07Sugar & Allied Industries 9.59 8.43Oil & Gas Marketing Companies 8.00 8.61Cement 7.57 7.65Others 29.70 29.87Total 88.81 88.62 Top holding (%age of total assets) Shahtaj Sugar Mills Ltd. 8.20IGI Insurance Ltd. 7.77Adamjee Insurance Co. Ltd. 7.31MCB Bank Ltd. 6.40Pakistan State Oil Co. Ltd. 4.82United Bank Ltd. 4.73Habib Bank Ltd. 4.49Engro Corporation Ltd. 4.20Rafhan Maize Products Ltd. 4.05Nishat Mills Ltd. 3.86 Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s (WWF) liability to the tune of Rs. 91,288,040, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 7.39 / 3.6%. For details investors are advised to read the Note 9.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged. * Converted into open end scheme on 19 July, 2013.

Cumulative return is based as per MUFAP stated methodology.



*For FY17

JS Value Fund (JS VF) November 2016



The fund maintains a portfolio of high yielding equity securities aiming at earnings derived from capital appreciation and dividend income. The portfolio seeks capital growth through investments in listed equity securities with better-than-average appreciation potential and liberal dividend policies. To benefit from changing interest rate environment and some portion of the portfolio is also kept in cash and near cash instruments (excluding TDR) which may include Government securities not exceeding ninety (90) days maturity. Key information Fund type Open endCategory Equity SchemeFund launch date 14 January, 1996 *Net Assets (PKR mn) 1,185.06NAV (PKR) 230.92Benchmark 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 NILPricing mechanism Forward Trustee MCB Financial Services LtdDealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor KPMG Taseer Hadi & Co.Risk profile HighListing PSXLeverage NILManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Khawar Iqbal - Chief Financial OfficerMr. Zahid Ullah Khan - CIO / Fund ManagerMr. Yousuf Muhammad Farooq - Head of Research

Fund manager's review Your fund returned 6.48 percent during the month and outperformed its benchmark by 1.64 percent. On a YTD basis (i.e. from July 2016 to November 2016), the outperformance is of 6.12 percent. At the start of the month your fund's investment level was at 83.65 percent. However, the investment level was enhanced during November and by the end of the month the investment level stood at 98.85 percent. Throughout the month, your fund manager maintained a focus towards existing valuations in the market and effort was expended on finding better investment opportunities on a relative basis. Your fund manager considered your investment in oil & gas exploration stocks as a special situations investment and held onto these stocks during the month, despite nervousness prevailing in the international oil markets. Our country's economy is passing through a growth phase and our stock market has responded with a comfortable degree of faith on our country's prosperous direction in the future. Your fund manager is committed to ensuring that your fund performs in a similar fashion and keep its valuation focus in accord.

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


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

FY17 FY16 FY15 FY14 FY13July 2.99 5.69 2.04 8.16 3.57August 3.04 -2.69 -6.80 -7.20 5.88September 2.65 -5.87 4.69 -0.82 1.11October -1.84 7.55 1.33 3.02 4.23November 6.48 -3.25 2.17 12.94 4.98December 4.21 5.83 4.30 1.86January 0.09 6.26 0.57 1.37February -5.23 -2.35 0.73 7.90March 5.88 -10.97 6.46 2.58April 3.44 10.44 2.87 3.74May 1.74 -3.52 2.13 14.40June 2.49 2.16 -1.00 -0.16YTD 13.87 13.72 9.72 35.52 64.30Benchmark 7.75 0.37 5.67 25.96 35.95Difference 6.12 13.35 4.05 9.56 28.35 Asset allocation (%)


Nov-16 Oct-16Commercial Banks 20.52 17.93Cement 15.65 9.37Sugar & Allied Industries 8.49 9.35Insurance 8.00 7.54Oil & Gas Exploration Companies 7.62 7.61Others 32.41 25.57Total 92.69 77.38 Top holding (%age of total assets) Al-Abbas Sugar Mills Ltd. 8.49D. G. Khan Cement Co. Ltd. 6.56MCB Bank Ltd. 6.24Adamjee Insurance Co. Ltd. 5.89Pakistan National Shipping Corporation Ltd. 5.77Pakistan State Oil Co. Ltd. 5.21Cherat Cement Co. Ltd. 4.92Rafhan Maize Products Ltd. 4.64Nishat Mills Ltd. 4.38Pakistan Petroleum Ltd. 4.03 Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s (WWF) liability to the tune of Rs. 39,130,068 if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 7.62 / 3.3%. For details investors are advised to read the Note 9.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged.

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



*For FY17

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JS Large Cap. Fund (JS LCF) November 2016



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

Key information Fund type Open endCategory Equity SchemeFund launch date 14 May, 2004 *Net Assets (PKR mn) 681.14NAV (PKR) 135.59Benchmark 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 NILPricing mechanism Forward Trustee Central Depository Company of Pakistan Ltd.Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor Deloitte Yousuf Adil Risk profile HighListing PSXLeverage NILManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive Officer Mr. AAH Soomro, CFA, FRM - Fund ManagerMr. Zahid Ullah Khan - Chief Investment Officer Mr. Yousuf Muhammad Farooq - Head of ResearchMr. Khawar Iqbal - Chief Financial Officer






July 6.71 6.07 3.43 12.94 4.07August 2.91 -3.30 -10.37 -8.41 4.39September 5.10 -7.28 8.70 -1.23 -1.16October -2.91 7.83 6.87 3.16 1.89November 9.81 -5.91 7.34 12.98 6.40December 4.67 9.16 5.55 1.40January -0.49 8.86 4.48 2.87February -5.33 -3.83 -6.70 7.98March 6.35 -9.81 8.30 3.96April 2.23 12.66 3.63 0.66May -0.21 -3.00 3.40 12.08June 1.50 1.18 -1.79 0.52YTD 23.04 4.77 31.74 39.64 54.57Benchmark 7.75 0.37 5.67 25.96 35.95Difference 15.29 4.40 26.07 13.68 18.62 Asset allocation (%)


Nov-16 Oct-16Cement 14.09 16.44Commercial Banks 11.90 12.67Oil & Gas Marketing Companies 9.79 11.18Automobile Assembler 7.47 9.48Insurance 6.34 6.58Others 34.03 31.20Total 83.61 87.54 Top holding (%age of total assets) D. G. Khan Cement Co. Ltd. 6.30Pakistan State Oil Co. Ltd. 5.67MCB Bank Ltd. 5.15Kohat Cement Ltd. 4.69HinoPak Motors Ltd. 4.36Attock Petroleum Ltd. 4.11Agriautos Industries Ltd. 4.05Nishat Mills Ltd. 3.71United Bank Ltd. 3.56Orix Leasing Pakistan Ltd. 3.51

Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s (WWF) liability to the tune of Rs. 45,687,183, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 9.09 / 6.7%. For details investors are advised to read the Note 9.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged. * Converted into open end scheme on 26 September, 2010.



* For FY17

JS Islamic Fund (JS ISF) November 2016



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

Key information Fund type Open endCategory Shariah Compliant Islamic - Equity SchemeFund launch date 27 December, 2002Net Assets (PKR mn) 879.45NAV (PKR) 134.19Benchmark KMI-30 IndexManagement fee 2.00% (Exclusive of SST & FED)Front-end Load 3.00%Back-end Load NILPricing mechanism Forward Trustee Central Depository Company of Pakistan Ltd.Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor A. F. Ferguson & Co.Shariah advisor M/s. Al Hilal Shariah Advisors (Pvt) LimitedRisk profile HighListing PSXLeverage NILManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Zahid Ullah Khan - Chief Investment OfficerMr. Khawar Iqbal - Chief Financial OfficerMr. AAH Soomro, CFA, FRM - Fund ManagerMr. Yousuf Muhammad Farooq - Head of Research

Fund manager's review Pakistan, on the other hand, is a small dot on the Global Markets. We very well can survive the 4 years of Trump-tronic IF chest-thumping of India simmers done in the wake of Mr. Trump's inclination towards India to counter China and his worry was of a common man’s over "nukes" of Pakistan. At historic low interest rates, coupled with CPEC related pouring of Chinese wealth, we can avoid rapid depreciation of currency as in the case of Egypt, Nigeria, Venezuela and Mexico. If only the Ministry of Finance decides to trade goods with China - with whom we have largest Trade deficit by the way - in Yuans instead of US Dollars, Pakistan is good to go. The rising once-stagnant middle class shall keep moving the needle.

That said, complacency is beginning to emerge; in the absence of IMF's monitoring is leading to Fiscal imprudence that may ultimately increase Fiscal Deficit, Inflation, Interest Rate and undo the current projections of economic growth. Team Nawaz appears to be rejecting calls of PKR depreciation and in lieu, are offering bailout package to exports as mathematically, cost of increasing interest payment on dollar denominated debt is going to be less than any incentive offered to export-driven industries. Investment in "quality" education sector would be a great start for any new government especially in times when Oil Exporting Nations are facing a tough time and a probable, de-pegging of their currencies with dollar, is going to prompt many local Pakistanis to search of opportunities within their country because the worth of their earnings in Dirham’s/Riyals/Dinar is not going to be a great trade-off anymore.

Take energy prices, for example. Oil bounced back from its lows and the latest decision of OPEC to cut - albeit marginally - supplies is going to keep Oil prices north of $50s. Coal has raced upwards owing to lack of domestic demand in China and new natural gas contracts are being liked to upward trending crude prices as well. Similarly, commodities - such as Zinc, Steel, Iron, Aluminum, Copper, Rubber - are all heading north after a prolonged bearish trend from 2011 to 2015. It just doesn't reflect rising demand but perhaps declining supplies and re-balancing of global demand and supply. Rising energy prices are going to start eating the profits of energy intensive, Cement, Steel, Glass, Textile sectors, respectively. While apart from Textile sector - which has external customers - the rising economic growth's driven domestic demand is going to nudge the revenues for Cement, Steel and Glass sector. Thus, as long as the music is being played and sales numbers of domestic cement consumption - the closest proxy of housing market - keep rising, your fund manager is continuing his bullish theme with admittedly, a lower level of confidence. Rising energy prices may lead to pressure of domestic currency, inflation and eventual interest-rate upticking but the impact of such control measures are years from now and going to be gradual. Not enough to warrant a significant U-turn on our thematic sector plays.

Continuing our theme to search for the star-performers, we are diversify-ingly betting upon Oil Marketing Companies, such as Attock Petroleum and Pakistan State Oil, 30-40% growth in Heavy Commercial Vehicle Sales (HINO), a smaller car launch (PSMC), introduction of new products in booming auto sector (Thall Limited and AgriAutos), FFBL (multi-pronged growth from Coal Power, Urea production, Wind Power, Fauji Meat and Fauji Foods). Interestingly, your fund manager has found two tremendous growth stories and have acquired a significant stake in Ghani Gases Limited (expansion of their under incorporation subsidiary of Ghani Chemicals to improve product portfolio and reduce energy costs) and Ghani Global Glass (forward vertical integration of setting up an Ampoule and Vials manufacturing plant). We believe these stories are at the cusp up turnaround and upon maturity the stake would be worth mani-folds in these much sought after businesses. Our long-held conviction bet in Cherat Cement has, in our opinion, done its duty of our investors and we have substantially reduced our over-allocation to the company - by the time this commentary goes public - that offers normal returns at current prices. We have enjoyed our ride and thank the management for enhancing shareholders return.

Performance (%)

1M 1Y 3Y 5Y Launch Avg. Ann.*Fund 10.44 49.04 137.76 400.05 964.04 18.49Benchmark 7.18 33.56 75.64 237.47 699.23 16.08Difference 3.26 15.48 62.12 162.58 264.81 2.41



July 9.76 2.96 3.79 15.35 3.24August 1.98 -4.33 -11.70 -11.98 6.71September 7.51 -6.10 9.19 1.59 0.11October -2.04 5.97 8.71 1.02 -0.36November 10.44 -5.64 7.98 10.07 1.40December 4.56 8.68 4.84 1.89January 0.54 7.41 5.64 3.05February -5.20 -1.86 -3.33 7.08March 7.66 -10.57 7.37 2.83April 2.37 13.79 3.46 2.07May 1.85 -1.15 0.81 11.39June 2.33 5.55 0.67 -0.64YTD 30.19 5.88 42.90 38.43 45.51Benchmark 7.96 15.53 20.10 29.89 54.41Difference 22.23 -9.65 22.80 8.54 -8.90 Asset allocation (%)


Nov-16 Oct-16Cement 21.78 24.76Oil & Gas Marketing Companies 12.02 12.94Automobile Assembler 9.18 13.00Textile Composite 6.96 10.36Automobile Parts & Accessories 5.20 4.46Others 27.24 23.11Total 82.38 88.62 Top holding (%age of total assets) Pakistan State Oil Co. Ltd. 8.29Cherat Cement Co. Ltd. 7.67D. G. Khan Cement Co. Ltd. 7.12Nishat Mills Ltd. 6.96HinoPak Motors Ltd. 5.30Agriautos Industries Ltd. 5.20Pak Suzuki Motor Co. Ltd. 3.88Attock Petroleum Ltd. 3.72Kohat Cement Ltd. 3.45Packages Ltd. 2.73 Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s (WWF) liability to the tune of Rs. 12,977,854, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 1.98 / 1.5%. For details investors are advised to read the Note 9.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged. Cumulative returns are based as per MUFAP stated methodology.



*For FY17

JS Fund of Funds (JS FoF) November 2016



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

Key information Fund type Open endCategory Fund of Fund SchemeFund launch date 31 October, 2005Net Assets (PKR mn) 299.17NAV (PKR) 53.34Benchmark BM FOF#

Management fee 1.00% (Exclusive of SST & FED)Front-end Load 3.00%Back-end Load NILPricing mechanism Forward Trustee Central Depository Company of Pakistan Ltd.Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor KPMG Taseer Hadi & Co.Risk profile MediumListing PSXLeverage NILManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Zahid Ullah Khan - Chief Investment OfficerMr. Khawar Iqbal - Chief Financial OfficerMr. AAH Soomro, CFA, FRM - Fund ManagerMr. Yousuf Muhammad Farooq - Head of Research




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

FY17 FY16 FY15 FY14 FY13July 1.09 2.66 4.88 13.60 0.36August 0.94 -2.28 -7.37 -8.62 3.11September 2.85 -6.25 3.52 6.78 -0.38October -3.09 5.78 2.93 -0.05 1.52November 5.77 -2.97 4.47 7.87 3.20December 3.78 5.34 4.63 1.07January -1.11 5.35 3.32 2.31February -3.30 -0.95 -2.52 4.35March 6.21 -7.01 5.38 1.20April 3.63 10.03 4.43 2.59May 3.71 -1.97 1.77 11.12June -0.24 1.01 -0.67 -10.01YTD 7.56 9.08 20.44 40.09 21.01Benchmark 9.28 3.98 21.16 19.79 26.91Difference -1.72 5.10 -0.72 20.30 -5.90 Asset allocation (%)

Nov-16 Oct-16Open-end 75.01 52.96 Close-end - - T Bills - - Cash 24.87 46.79 Other including receivables 0.12 0.25 Total 100.00 100.00 Top holding (%age of total assets) JS Large Cap. Fund 18.96NAFA Stock Fund 18.93JS Islamic Fund 18.37Atlas Stock Market Fund 10.13Alfalah GHP Alpha Fund 8.61n/a n/an/a n/a

Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s (WWF) liability to the tune of Rs. 11,932,101, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 2.13 / 4.0%. For details investors are advised to read the Note 9.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged. Cumulative returns are based as per MUFAP stated methodology. # '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 '. "



* For FY17

JS Cash Fund (JS CF) November 2016



JS Cash Fund (JS CF) is an open-end 'Money Market Scheme' that mainly invests in low risk short-term fixed income instruments including money market instruments to provide a regular and reasonable return to investors while ensuring high liquidity. The Fund shall invest primarily in short duration instruments and may even hold some or all of its assets in cash for the purpose maintaining liquidity. Key information Fund type Open endCategory Money Market SchemeFund launch date 29 March, 2010Net Assets (PKR mn) 538.12NAV (PKR) 104.76Benchmark BM CF1

Management fee 0.50% (Exclusive of SST & FED)Front-end Load 1.00%Back-end Load NILPricing mechanism BackwardTrustee MCB Financial Services Ltd Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor KPMG Taseer Hadi & Co.Risk profile Extremely LowListing PSXFund stability rating (JCR-VIS) AA+ (f)Leverage NILManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Zahid Ullah Khan - Chief Investment OfficerMr. Khawar Iqbal - Chief Financial OfficerMr Asim Ilyas - Fund ManagerMr. Yousuf Muhammad Farooq - Head of Research Fund manager's review

JS Cash Fund reported an annualized return of 4.90% for the month of November 2016, as compared to the annualized benchmark return of 5.27%, underperforming by 37 basis points. During the month, fund manager placed funds in daily product at comparable higher rates, with benign inflation we will reallocate funds towards TBills and rebalance the portfolio as per the market developments and continue to negotiate for better bank rates.

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

Fund 4.90 5.47 8.01 9.58 11.78Benchmark 5.27 5.33 7.62 9.24 10.91Difference -0.37 0.13 0.40 0.34 0.87 Monthly performance (%) Annualized performance2

FY17 FY16 FY15 FY14 FY13July 5.51 5.87 8.62 7.28 10.42August 5.37 5.72 8.69 7.24 13.78September 5.06 6.94 8.68 5.83 8.35October 4.99 5.66 9.05 7.27 9.77November 4.90 4.54 9.34 7.65 7.65December 5.61 8.33 8.04 7.97January 5.70 10.03 8.06 7.72February 5.47 7.62 8.17 7.10March 5.54 7.17 8.86 7.79April 5.35 8.93 8.88 8.29May 5.38 6.65 8.91 8.17June 4.95 14.10 8.84 7.70YTD 5.21 5.71 9.30 8.21 9.11Benchmark 5.08 5.74 8.20 8.73 8.98Difference 0.14 -0.03 1.10 -0.52 0.13 Asset allocation (%)

Nov-16 Oct-16Cash 99.49 99.24 Placement with Banks and DFIs - - T Bills - - Other including receivables 0.51 0.76 Total 100.00 100.00 Asset quality (%age of total assets)

AAA0.00%

AA99.27%

AA+0.01%

A+0.22%


Disclosure for WWF Liability under Circular 17 of 2012

Consequent upon the approval of the Board of Directors, the Management Company of the fund has prudently indemnify the unrecognized amount of WWF amounting to Rs. 10.884 million aggregated up to June 30, 2013. The fund is maintaining prospective provisioning against WWF with effect from July 01, 2013. The Scheme has maintained provisions against Worker's Welfare Fund’s (WWF) liability to the tune of Rs. 3,441,484, if the same were not made the NAV per unit/return of the Scheme would be higher by Re. 0.67 / 0.6%. For details investors are advised to read the Note 9.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged.

1. 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.

Statistical analysis Fund BM Fund BM

Standard Deviation 0.8% 0.6% Largest Month Gain 1.2% 0.9%Expense Ratio* 0.44% Largest Month Loss 0.0% 0.0%Duration (Days) 1 % Positive Months 100.0% 100.0%WAM (Days) 1

* For FY17

JS Income Fund (JS IF) November 2016



JS IF is an income fund that aims to preserve investor’s capital while providing a regular stream of current income on an annual basis which is higher than that offered by commercial banks on deposits of a similar liquidity profile as this fund. The fund operates a diverse portfolio of investment-grade debt securities, government securities and money market instruments. The fund may maintain liquidity in the form of spread transactions and bank deposits. Key information Fund type Open endCategory Income Fund SchemeFund launch date 26 August, 2002Net Assets (PKR mn) 2,439.38NAV (PKR) 99.01Benchmark BM IF #Management fee 0.75% (Exclusive of SST & FED)Front-end Load 1.00%Back-end Load NILPricing mechanism Forward Trustee MCB Financial Services LtdDealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor Grant Thorton Anjum Rahman & CoRisk profile Low To MediumListing PSXFund stability rating (PACRA) A+ (f)Leverage NILManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Zahid Ullah Khan - Chief Investment OfficerMr. Khawar Iqbal - Chief Financial OfficerMr Asim Ilyas - Fund ManagerMr. Yousuf Muhammad Farooq - Head of Research

# 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 November 2016, JSIF yielded an annualized return of 9.04% as compared to the benchmark of 6.09%, outperforming by 295 basis points. During the month, fund decreased exposure towards TFCs and TDRs to reallocate into bank placements at better rates to enhance the fund’s return. Going forward, with benign inflation we will reallocate funds towards PIBs as well as TBills to rebalance the portfolio as per the market developments. Non Compliant Investments under Circular 07/2009 Name ofInvestment Type Value before

provisionProvision held

(if any)Value after provision

% of Net Assets

% of Gross Assets

Azgard Nine a TFC 6,661,110 (6,661,110) - - -

Azgard Nine b PPTFCs 31,980,766 (31,980,766) - - -

Agritech Ltd. c Sukuk 59,572,782 (59,572,782) - - -

Agritech Ltd.d PPTFC - - - - -

Dewan Cement e TFC 50,000,000 (49,990,000) 10,000 0.00 0.00

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

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

Fund 9.04 7.28 9.29 10.71 14.36 Benchmark 6.09 6.40 8.96 11.23 16.07 Difference 2.95 0.88 0.33 (0.52) (1.71) Monthly performance (%) Annualized performance1

FY17 FY16 FY15 FY14 FY13July 13.78 11.50 7.44 4.86 11.24August 5.72 5.82 9.04 6.71 20.78September 7.13 3.69 9.55 -0.15 11.71October 5.17 3.31 8.90 5.81 11.72November 9.04 5.95 14.85 12.33 5.78December 6.58 20.84 7.77 23.72January 3.76 16.64 10.36 6.49February 9.81 7.55 7.29 -0.85March 6.23 5.65 12.38 7.00April 0.86 17.17 13.93 8.69May 11.44 2.59 -0.41 7.67June 4.86 1.75 8.34 6.40YTD 8.28 6.33 10.65 7.67 10.60Benchmark 6.11 6.70 9.35 10.30 10.38Difference 2.17 -0.37 1.30 -2.63 0.22 Asset allocation (%)

Nov-16 Oct-16Cash 79.73 70.78 Placement with Banks and DFIs 16.74 24.49 Equity* 0.56 0.68 T Bills - - PIBs - - TFCs / Sukkuks 1.79 2.61 MTS / Spread Transactions - - Other including receivables 1.18 1.43 Total 100.00 100.00

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

A-31.81%

A-222.33%

A24.89%

A+0.56%

AA0.10%

AA-0.03%

0.00%


Disclosure for WWF Liability under Circular 17 of 2012 Consequent upon the approval of the Board of Directors, the Management Company of the fund has prudently indemnified the unrecognized amount of WWF amounting to Rs. 20.426 million aggregated up to June 30, 2013. The fund is maintaining prospective provisioning against WWF with effect from July 01, 2013. The Scheme has maintained provisions against Worker's Welfare Fund’s (WWF) liability to the tune of Rs. 1,693,409, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 0.07 / 0.10%. For details investors are advised to read the Note 10.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged. 1 Annualized performance return is based as per MUFAP stated methodology.


Standard Deviation 4.4% 1.0% Largest Month Gain 3.7% 1.2%Expense Ratio 0.55% Largest Month Loss -10.3% 0.0%Duration (Yr) 0.06 % Positive Months 92.4% 100.0%WAM (Yr) 0.11

* For FY17

JS Islamic Government Securities Fund (JS IGSF) November 2016



JS Islamic Government Securities Fund (JS IGSF) is an open end 'Shariah Compliant Sovereign Income Scheme' which aims at generating a stable stream of current HALAL income while ensuring low risk (volatility) and capital preservation in the medium to long term by investing primarily in Shariah Compliant Government Securities. Key information Fund type Open endCategory Shariah Compliant Income Scheme Fund launch date 5 June, 2013Net Assets (PKR mn) 314.01NAV (PKR) 103.22Benchmark # BM IGSF1

Management fee 0.75% (Exclusive of SST & FED)Front-end Load 1.00%Back-end Load NILPricing mechanism Forward Trustee MCB Financial Services Ltd Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor KPMG Taseer Hadi & Co.Shariah advisor M/s. Al Hilal Shariah Advisors (Pvt) LimitedRisk profile Low to MediumListing PSXFund stability rating (PACRA) AA- (f)Leverage NILManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Zahid Ullah Khan - Chief Investment OfficerMr. Khawar Iqbal - Chief Financial OfficerMr. Umair Ahmed Khan - Fund ManagerMr. 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. Fund manager's review The fund recorded annualized return of 9.62% for the month of November 2016, as compared to the benchmark return of 4.14%, an outperformance of 548 bps. During the month, fund manager increased exposure into Fixed rental Ijara Sukuk while higher exposure was maintained in Floater Rental Ijara Sukuk. Furthermore, the remaining fund placed in banks at relatively better rate. Additionally we strive to generate positive returns from trading strategy according to the expected direction of the GOP Ijara Sukuks market.

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

Fund 9.62 6.11 5.36 5.51 6.73Benchmark 4.14 4.21 4.73 12.02 7.02Difference 5.48 1.90 0.63 -6.50 -0.29 Monthly performance (%) Annualized performance2

FY17 FY16 FY15 FY14 FY13July 4.22 4.58 2.42 6.83 n/aAugust 4.20 3.98 3.13 6.91 n/aSeptember 4.69 -0.12 4.26 7.88 n/aOctober 9.15 2.33 6.45 6.81 n/aNovember 9.62 1.56 5.54 12.54 n/aDecember 6.75 5.80 9.47 n/aJanuary -1.27 12.25 6.55 n/aFebruary 3.34 5.95 11.28 n/aMarch 7.50 8.08 13.07 n/aApril 4.03 7.13 6.10 n/aMay 6.06 7.42 10.17 n/aJune 4.33 4.05 4.19 6.03YTD 6.43 3.66 6.22 8.80 6.03Benchmark 4.17 5.49 7.62 7.16 6.70Difference 2.26 -1.83 -1.41 1.64 -0.67 Asset allocation (%age of total assets)

Nov-16 Oct-16Cash 25.60 23.71Placement with Banks and DFIs - - TFCs / Sukkuks 72.48 74.27Other including receivables 1.92 2.02Total 100.00 100.00

Asset quality (%age of total assets)

A+23.98%

AA+1.61%

AAA72.48%

AA0.00%

AA-0.00%

* Govt. securities (72.48)%)

Sukuks allocation - Top Ten Holding

72.48%

0.0%

25.0%

50.0%

75.0%

100.0%

125.0%

GoP Ijara Sukkuks

Disclosure for WWF Liability under Circular 17 of 2012

The Scheme has maintained provisions against Worker's Welfare Fund’s (WWF) liability to the tune of Rs. 981,093, if the same were not made the NAV per unit/return of the Scheme would be higher by Re. 0.32 / 0.3%. For details investors are advised to read the Note 8.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged.

1. The benchmark of the scheme shall be the average 6 month Placement (Deposit)

rate of 3 Islamic Banks (including Islamic windows of Commercial Banks) 2. Annualized return is based as per MUFAP stated methodology.


Standard Deviation 0.9% 0.4% Largest Month Gain 1.1% 0.7%Expense Ratio 0.89% Largest Month Loss -0.1% 0.0%Duration (Yr) 0.11 % Positive Months 95.3% 100.0%WAM (Yr) 1.54

* For FY17

JS Capital Protected Fund V (JSCPF_V) November 2016



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.

Key information Fund type Open endCategory Capital Protected SchemeFund launch date 30 May, 2016Net Assets (PKR mn) 301.97NAV (PKR) 102.45Benchmark BM1

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

Up to 1.0% of NAV during the last 12 months and three weeksPricing mechanism Forward Trustee MCB Financial Services LimitedDealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor Grant Thornton Anjum Rahman Chartered AccountantsRisk profile Very LowListing PSXLeverage NILCapital Protection Rating CP2+ (CP Two plus) by PACRAManagement Quality Rating AM2 by JCR-VISInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive Officer Mr. AAH Soomro, CFA, FRM - Fund ManagerMr. Zahid Ullah Khan - Chief Investment Officer Mr. Yousuf Muhammad Farooq - Head of ResearchMr. Khawar Iqbal - Chief Financial Officer

Fund manager's review Pakistan, on the other hand, is a small dot on the Global Markets. We very well can survive the 4 years of Trump-tronic IF chest-thumping of India simmers done in the wake of Mr. Trump's inclination towards India to counter China and his worry was of a common man’s over "nukes" of Pakistan. At historic low interest rates, coupled with CPEC related pouring of Chinese wealth, we can avoid rapid depreciation of currency as in the case of Egypt, Nigeria, Venezuela and Mexico. If only the Ministry of Finance decides to trade goods with China - with whom we have largest Trade deficit by the way - in Yuans instead of US Dollars, Pakistan is good to go. The rising once-stagnant middle class shall keep moving the needle.

That said, complacency is beginning to emerge; in the absence of IMF's monitoring is leading to Fiscal imprudence that may ultimately increase Fiscal Deficit, Inflation, Interest Rate and undo the current projections of economic growth. Team Nawaz appears to be rejecting calls of PKR depreciation and in lieu, are offering bailout package to exports as mathematically, cost of increasing interest payment on dollar denominated debt is going to be less than any incentive offered to export-driven industries. Investment in "quality" education sector would be a great start for any new government especially in times when Oil Exporting Nations are facing a tough time and a probable, de-pegging of their currencies with dollar, is going to prompt many local Pakistanis to search of opportunities within their country because the worth of their earnings in Dirham’s/Riyals/Dinar is not going to be a great trade-off anymore.

Take energy prices, for example. Oil bounced back from its lows and the latest decision of OPEC to cut - albeit marginally - supplies is going to keep Oil prices north of $50s. Coal has raced upwards owing to lack of domestic demand in China and new natural gas contracts are being liked to upward trending crude prices as well. Similarly, commodities - such as Zinc, Steel, Iron, Aluminum, Copper, Rubber - are all heading north after a prolonged bearish trend from 2011 to 2015. It just doesn't reflect rising demand but perhaps declining supplies and re-balancing of global demand and supply. Rising energy prices are going to start eating the profits of energy intensive, Cement, Steel, Glass, Textile sectors, respectively. While apart from Textile sector - which has external customers - the rising economic growth's driven domestic demand is going to nudge the revenues for Cement, Steel and Glass sector. Thus, as long as the music is being played and sales numbers of domestic cement consumption - the closest proxy of housing market - keep rising, your fund manager is continuing his bullish theme with admittedly, a lower level of confidence. Rising energy prices may lead to pressure of domestic currency, inflation and eventual interest-rate upticking but the impact of such control measures are years from now and going to be gradual. Not enough to warrant a significant U-turn on our thematic sector plays.

Continuing our theme to search for the star-performers, we are diversify-ingly betting upon Oil Marketing Companies, such as Attock Petroleum and Pakistan State Oil, 30-40% growth in Heavy Commercial Vehicle Sales (HINO), a smaller car launch (PSMC), introduction of new products in booming auto sector (Thall Limited and AgriAutos), FFBL (multi-pronged growth from Coal Power, Urea production, Wind Power, Fauji Meat and Fauji Foods), IGI Insurance (splitting up of the insurance and long-sought investment portfolio). Interestingly, your fund manager has found two tremendous growth stories and have acquired a significant stake in Ghani Gases Limited (expansion of their under incorporation subsidiary of Ghani Chemicals to improve product portfolio and reduce energy costs) and Ghani Global Glass (forward vertical integration of setting up an Ampoule and Vials manufacturing plant). We believe these stories are at the cusp up turnaround and upon maturity the stake would be worth mani-folds in these much sought after businesses. Our long-held conviction bet in Cherat Cement has, in our opinion, done its duty of our investors and we have substantially reduced our over-allocation to the company - by the time this commentary goes public - that offers normal returns at current prices. We have enjoyed our ride and thank the management for enhancing shareholders return.


Standard Deviation 1.8% Beta 1.2 1.0Expense Ratio* 0.83% Largest Month Gain 1.0% 0.8%

Largest Month Loss -0.2% 0.0%% Positive Months 71.4% 100.0%

* For FY17

Performance (%)

1M 6M 1Y 2Y Launch Avg. Ann.*Fund 0.97 2.55 n/a n/a 2.55 5.12Benchmark 0.84 2.51 n/a n/a 2.51 5.04Difference 0.13 0.04 n/a n/a 0.04 0.08

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

FY17 FY16July -0.20 n/aAugust 0.83 n/aSeptember 0.91 n/aOctober -0.08 n/aNovember 0.97 n/aDecember n/aJanuary n/aFebruary n/aMarch n/aApril n/aMay n/aJune 0.10YTD 2.45 0.10Benchmark 2.36 0.15Difference 0.09 -0.05 Asset allocation (%)

Nov-16 Oct-16Cash 1.88 1.51Equity 6.59 5.55TDR 88.54 90.30Other including receivables 2.99 2.64Total 100.00 100.00 Equity sector breakdown (%)

Nov-16 Oct-16Commercial Banks 1.43 1.41Chemical 1.42 0.00Glass & Ceramics 1.39 0.00Cement 0.87 1.96Automobile Parts & Accessories 0.74 0.75Others 0.74 1.43Total 6.59 5.55 Top holding (%age of total assets) MCB Bank Ltd. 1.43Ghani Gases Ltd. 1.42Ghani Global Glass Ltd. 1.39D. G. Khan Cement Co. Ltd. 0.87Orix Leasing Pakistan Ltd. 0.74Atlas Battery Ltd. 0.74

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

“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)” “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”

JS Pension Savings Fund (JS PSF) November 2016



JS Pension Savings Fund (JS PSF) is designed to provide a secure source of savings and retirement income to individuals. JS PSF is a portable pension scheme allowing individuals the flexibility of contributions and portfolio customization through allocation of such contributions among equity and fixed income investment avenues suited to their specific needs and risk profile. Key information Fund type Open endCategory Pension Savings FundFund launch date 26 June, 2007Benchmark n/aManagement fee 1.50% (Exclusive of SST & FED)Front-end Load 3.00%Back-end Load NILPricing mechanism Forward Trustee Central Depository Company of Pakistan Ltd.Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor KPMG Taseer Hadi & CoRisk profile Investor dependent Leverage NILManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Zahid Ullah Khan - Chief Investment OfficerMr. Khawar Iqbal - Chief Financial OfficerMr. Umair Ahmed Khan - Fund ManagerMr. Yousuf Muhammad Farooq - Head of Research Net Assets (PKR mn)JS-PSF - Equity Sub Fund 191.07JS-PSF - Debt Sub Fund 144.04JS-PSF - MM Sub Fund 110.13

NAV (PKR)JS-PSF - Equity Sub Fund 491.41JS-PSF - Debt Sub Fund 222.04JS-PSF - MM Sub Fund 180.60 Fund manager's review The Debt and Money Market Sub Fund recorded return of 4.23% p.a. and 6.91% p.a. respectively for the month of November, 2016, as fund remained invested in TBills while yields went up by few basis points that brought mark to market loss in the funds however equity exposure (AGL) paid off during the month on the back of better company’s outlook. Going forward we will maintain investment in Treasury Bill in Money Market Sub Fund while regain exposure towards PIBs in Debt Sub Fund conditioned to economic and inflation outlook. The index surged 6.8% MoM in Nov-16 albeit foreign selling worth USD117mn, as local participation absorbed the foreign selling and maintained the upward trajectory with individuals and mutual funds mopping up shares worth USD147mn. Gains were led by Banks & Cements with banks gaining traction on account of high inflationary reading and expected foreign inflows into the sector in the near term warrant the rerating of multiples. While cement sector rallied as local sales exhibit double digit growth of around 10% YoY (+5% MoM) to record 3.7mn tons during the outgoing month. An eventful month ended with OPEC agreeing to cut production by 1.2mbpd; a first in the last 8 year to 32.5mnbpd. Smooth transition of COAS, abating political stalemate and status quo maintained at MPS encouraged investors’ sentiment. We remain convinced equities market will maintain its upward trajectory in the near to medium term on the back of PSX index classification into MSCI EMI in June 2017 and Pakistan’s higher expected economic growth for the upcoming years. Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s (WWF) liability to the tune of Rs. 4,587,149, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 5.70 (ESF), Rs. 2.18 (DSF), Rs. 1.57 (MMF) / 1.2% (ESF), 1.0% (DSF), 0.9% (MMF). For details investors are advised to read the Note 8.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged. 1 Annualized performance return is based as per MUFAP stated methodology.

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

Equity Sub Fund 8.43 29.23 104.74 455.58 391.45Debt Sub Fund 1 4.23 4.48 24.41 45.49 122.06MM Sub Fund 1 6.91 4.36 17.89 42.81 80.62

Monthly performance (%) Annualized performance1

Equity Debt 1 MM 1

FY17 FY16 FY17 FY16 FY17 FY16July 3.67 2.86 7.38 6.81 10.72 7.76August 3.10 -0.49 3.43 8.91 3.03 3.44September 6.25 -5.79 3.25 4.57 3.47 3.19October -1.66 5.99 0.59 4.74 0.72 3.15November 8.43 -5.25 4.23 3.16 6.91 4.37December 3.21 3.93 4.76January -0.08 4.47 2.44February -4.95 5.41 4.12March 4.27 4.82 3.77April 2.38 0.45 3.61May 2.22 10.69 5.02June -0.21 3.80 2.62YTD 21.09 3.35 3.80 5.29 5.00 4.10

Asset allocation (%) Equity Nov-16 Oct-16Cash 4.92 18.77 Equity 94.62 78.49 Other including receivables 0.45 2.74 Total 100.00 100.00 Debt Nov-16 Oct-16Cash 4.69 4.80 Equity* 0.23 0.19 TFCs / Sukkuks - - T Bills & PIBs 94.94 94.70 Other including receivables 0.14 0.32 Total 100.00 100.00 Money Market Nov-16 Oct-16Cash 19.51 19.99 Placement with Banks - - Equity* 1.47 1.22 T Bills 78.83 78.59 Other including receivables 0.19 0.19 Total 100.00 100.00

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

Nov-16 Oct-16Commercial Banks 20.52 18.88 Cement 15.84 13.84 Transport 6.59 5.82 Automobile Assembler 6.29 6.83 Engineering 5.17 3.24 Others 40.22 29.88 Total 94.62 78.49

Top holding (%age of total assets) Pakistan National Shipping Corporation Ltd. 6.59 HinoPak Motors Ltd. 6.29 MCB Bank Ltd. 6.24 Cherat Cement Co. Ltd. 5.95 United Bank Ltd. 5.35 Habib Bank Ltd. 5.25 Amreli Steels Ltd. 5.17 D. G. Khan Cement Co. Ltd. 5.13 Tariq Glass Industries Ltd. 4.85 Nishat Mills Ltd. 4.81

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



JS Islamic Pension Savings Fund (JS IPSF) is designed to provide a Halal and secure source of savings and retirement income to individuals according to the principles of Islamic Shariah. JS IPSF is a portable pension scheme allowing individuals the flexibility of contributions and portfolio customization through allocation of such contributions among equity, fixed income and other Halal investment avenues suited to their specific needs and risk profile. Key information Fund type Open endCategory Shariah Compliant Voluntary Pension SchemeFund launch date 16 June, 2008Benchmark n/aManagement fee 1.50% (Exclusive of SST & FED)Front-end Load 3.00%Back-end Load NILPricing mechanism Forward Trustee Central Depository Company of Pakistan Ltd.Dealing Days & Cut-off time (Monday to Friday) 3:00 p.m.Auditor KPMG Taseer Hadi & CoShariah advisor M/s. Al Hilal Shariah Advisors (Pvt) LimitedRisk profile Investor dependent Leverage NILManagement Quality Rating AM2 by JCR-VISEntity Rating A+ (Long Term), A1 (Short Term) by PACRAInvestment Committee MembersDr. Ali Akhtar Ali - Chief Executive OfficerMr. Zahid Ullah Khan - Chief Investment OfficerMr. Khawar Iqbal - Chief Financial OfficerMr. Umair Ahmed Khan - Fund ManagerMr. Yousuf Muhammad Farooq - Head of Research Net Assets (PKR mn)JS-IPSF - Equity Sub Fund 160.47JS-IPSF - Debt Sub Fund 65.71JS-IPSF - MM Sub Fund 53.38

NAV (PKR)JS-IPSF - Equity Sub Fund 711.24JS-IPSF - Debt Sub Fund 193.31JS-IPSF - MM Sub Fund 166.12 Fund manager's review In the month of November, 2016, JS Islamic Pension Savings Debt Sub Fund and Money Market Sub Fund delivered returns of 14.20% annualized and 6.92% annualized respectively. During the month, allocation of government Ijara Sukuk has maintained exposure in IPSFDSF and IPSMMSF. Fund witnessed gains mainly from lowering of fixed rental rate Sukuks yields due to of lack of availability and staggering demand for the instruments from Islamic Banks.

The index surged 6.8% MoM in Nov-16 albeit foreign selling worth USD117mn, as increased local participation aided the upward trajectory with individuals and mutual funds mopping up shares worth USD147mn. Gains were led by Banks & Cements with banks gaining traction on account of high inflationary reading (i.e. core inflation clocking in at 5.2% in Oct-2016) lending support to expectations of an impending monetary tightening cycle. An eventful month ended with OPEC agreeing to cut production by 1.2mbpd; a first in the last 8 year to 32.5mnbpd, with other major events including i) abating political stalemate, ii) Trumps surprise victory, iii) gas price reduction for industries that was a catalyst for Ferts, Glass & Textile sector among others, iv) a smooth transition of COAS; v) increase in local rebar prices post closure of ship breaking operations at Gadani following a fire incident, vi) NTC taking up anti-dumping cases for PVC & Rebars & vii) status quo being maintained in the MPS.

We remain convinced equities market will maintain its upward trajectory in the near to medium term on the back of PSX index classification into MSCI EMI in June 2017 and Pakistan’s higher expected economic growth for the upcoming years.

Disclosure for WWF Liability under Circular 17 of 2012 The Scheme has maintained provisions against Worker's Welfare Fund’s (WWF) liability to the tune of Rs. 2,977,965, if the same were not made the NAV per unit/return of the Scheme would be higher by Rs. 9.42(ESF), Rs. 1.40 (DSF), Rs. 1.17 (MMF) / 1.3% (ESF), 0.7% (DSF), 0.7% (MMF). For details investors are advised to read the Note 7.1 of the latest Financial Statements of the Scheme. However, from July 01, 2015 WWF is not being charged. 1 Annualized performance return is based as per MUFAP stated methodology.

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

Equity Sub Fund 10.64 36.45 125.01 362.02 608.30Debt Sub Fund 1 14.20 5.81 15.54 31.06 92.50MM Sub Fund 1 6.92 3.05 13.97 30.18 65.43

Monthly performance (%) Annualized performance1

Equity Debt 1 MM 1

FY17 FY16 FY17 FY16 FY17 FY16July 4.52 1.17 8.31 6.74 2.96 5.24August 3.09 -1.58 4.94 5.08 2.73 4.85September 7.76 -6.20 4.57 2.54 3.11 0.23October -3.66 6.14 8.07 2.59 5.08 2.49November 10.64 -4.74 14.20 1.40 6.92 0.45December 3.41 7.28 5.33January 1.24 -1.35 0.07February -5.26 -0.89 -0.85March 3.61 8.66 3.42April 3.41 4.02 2.25May 2.94 5.90 3.55June 0.80 3.79 1.19YTD 23.75 4.13 8.10 3.91 4.18 2.41 Asset allocation (%) Equity Nov-16 Oct-16Cash 12.48 21.06 Equity 87.13 78.18 Other including receivables 0.39 0.76 Total 100.00 100.00 Debt Nov-16 Oct-16Cash 16.03 18.17 IJARA Sukuk Bond 82.01 80.18 Other including receivables 1.96 1.65 Total 100.00 100.00 Money Market Nov-16 Oct-16Cash 24.81 65.23 IJARA Sukuk Bond 36.02 33.75 TDR 37.73 - Other including receivables 1.44 1.02 Total 100.00 100.00 Equity sector breakdown (%)

Nov-16 Oct-16Cement 12.99 12.47 Automobile Assembler 8.16 6.53 Pharmaceuticals 7.57 10.02 Transport 6.83 6.24 Paper & Board 5.98 5.68 Others 45.60 37.23 Total 87.13 78.18 Top holding (%age of total assets) Pakistan National Shipping Corporation Ltd. 6.83 HinoPak Motors Ltd. 6.54 Packages Ltd. 5.98 Synthetic Products Enterprises Ltd. 5.69 Engro Corporation Ltd. 5.01 Nishat Mills Ltd. 4.99 Amreli Steels Ltd. 4.78 Rafhan Maize Products Ltd. 4.72 Pakistan State Oil Co. Ltd. 4.65 Thal Ltd. 4.61

Market Review - JS Investments · Market Review November 2016 ECONOMY Headline inflation registered...

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