JS MUTUAL FUNDS
S.KAMAL HAYDER KAZMI
Research Analyst, PAGE
Feb 09 - 15, 2009
Jahangir Siddiqui (JS) Company Ltd started its operations in September 2003. Its principal activities are share brokerage, money market and foreign exchange brokerage, equity research, advisory and consultancy services. It is a publicly listed company, trades on the Karachi Stock Exchange and one of the top three equity brokers in Pakistan. JS Global Capital Limited (formerly JS Capital Markets Ltd), with long term rating of AA by PACRA, is a subsidiary of Jahangir Siddiqui Company Limited. The company has launched various funds in the capital market.
UNIT TRUST OF PAKISTAN
Unit Trust of Pakistan (UTP) is the first open-end mutual fund in Pakistan's private sector. UTP has a balanced fund investment strategy. A balanced fund with investment in active equity securities or with enough liquidity can preempt the adverse impact of a stock market decline by moving funds to income paying (fixed income) securities or take advantage of a strong stock market by moving funds from fixed income to equity securities..
JS INCOME FUND
JS-Income Fund (JS - IF) is the second open-end mutual fund and follows a fixed income investment strategy, with a primary focus on maintaining a stable stream of income while keeping the initial investment as secure as possible. JS-IF aims at achieving a high rate of current income, consistent with reasonable concern for safety of capital and provides the investor the convenience to join or leave the fund at their discretion. JS-IF invests in assets that pay a fixed rupee amount, e.g. investment grade debt securities, treasury bills, term finance certificates, bank deposits and Government bonds. They are generally not affected by the volatility at the Stock Exchanges.
UTP ISLAMIC FUND
UTP-Islamic fund is the first Shariah compliant open-end mutual fund of Pakistan. UTP-Islamic Fund provides an outlet to investors who want 'Riba-free' returns. In addition, the fund aim is to provide the investors an optimum rate of return, reasonable concern for safety of capital and to provide the investors liquidity to join or leave the fund at their convenience.
UTP A30+ FUND
UTP A30+ is a perpetual, open-end fund divided into units having par value of Rs 50/share. The main focus of the UTP-A30+ Fund is to approximate the performance of KSE-30 Index, as adjusted for transaction and other costs, by investing in most or all of the common stocks that comprise the KSE-30 Index in proportions in which they are represented in the Index. The strategy of investing in the same stocks as the Index using a passive approach in managing the Fund's holdings minimizes the need for trading and therefore results in lower transaction expenses.
JS AGGRESSIVE INCOME FUND
JS Aggressive Income Fund (JS AIF) is an open-ended fund. JS AIF focuses on generating current income on investments while maintaining the prospects for capital appreciation. JS AIF may invest up to specified percentages as per offering document in any one type of authorized investment and may aggressively change weightings to take advantage of directional macro and micro economic trends. The Fund may hold some or even all of its assets in cash to either provide liquidity or for defensive purposes.
1Q09 Unit Trust of Pakistan 27-Oct-97 4,108.17 JS Income Fund 26-Aug-02 11,963.95 UTP Islamic Fund 27-Dec-02 493.59 JS Aggressive Asset Allocation 28-Jun-05 323.27 JS Fund of Funds 31-Oct-05 996.16 UTP A30+Fund 29-May-06 124.63 JS Capital Protected Fund 21-Feb-07 969.25 JS Capital Protected Fund II 18-Jun-07 1,583.69 JS Capital Protected Fund III 28-Sep-07 1,385.64 JS Capital Protected Fund IV 17-Apr-08 764.40 JS Aggressive Income Fund 22-Jan-08 899.39 UTP Large Capital Fund 15-May-04 2,790.45 JS Growth Fund 06-Jun-06 3,718.33 JS Value Fund Limited 14-Jan-96 2,012.83 JS Pension Savings Fund-Equity 25-Jun-07 22.60 JS Pension Savings Fund-Debt 25-Jun-07 32.72 JS Pension Savings Fund-Money Market 25-Jun-07 32.16 JS Islamic Pension Savings Fund-Equity 17-Mar-08 28.39 JS Islamic Pension Savings Fund-Debt 17-Mar-08 30.76 JS Islamic Pension Savings Fund-Money Market 17-Mar-08 30.71 Subtotal 32,311.09 Source: MUFAP
CROSBY DRAGON FUND
JS Bank Ltd is the only distributing bank of the Crosby Dragon Fund. Crosby Capital Limited is headquartered in Hong Kong and owns Crosby Asset Management Inc., a group quoted on the London Stock Exchange AIM and managing consolidated assets of over 2.5 billion USD for over 600 institutional clients in over 55 countries globally as at 31st Dec 2007. Being the only wholly international AMC in the country, Crosby Asset Management Pakistan aims to exceed in performance and service beyond the expectations of those that are most important the customers. It aspires to set standards in innovation, service quality, management strength and human capital management.
Pakistan's capital markets in the short run look bleak in the future. There is an urgent need to create the required depth necessary in the market through which investment can be attracted. Independent study is required to identify the present and future liquidity requirement of the capital markets. Our capital markets have been particularly resilient to the recent external shocks. This is mainly due to less integration of the system and prudential regulations to some extent. However, keeping the floor closed will not help solve the crisis. In fact, it will prove detrimental to the indices because investors will not be motivated to invest any further. Despite the lower profitability witnessed by the company in Q1'09, the management is optimistic about Pakistan's economic condition and financial sector, in particular. It is hoped that company will start performing well in the long run, if not in the short run. However, the recent launching of much awaited NIT State Enterprise Fund has positively affected the capital markets.