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JS Growth Fund (JS GF) June 2017

MUFAP Recommended Format

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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) 2,612.41NAV (PKR) 221.09Benchmark 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 MembersMr. Hasnain Raza Nensey - CEO Mr. Syed Ali Turab Alvi-CSOMr. Zahid Ullah Khan - CIO / Fund Manager Mr. Yousuf Muhammad Farooq - Head of ResearchMr. Khawar Iqbal - CFO

Fund manager's review It gives me immense pleasure to inform you that JS Growth Cap Fund has yield an annual return of 37.56% and was the second best performing fund amongst all conventional equity mutual funds in the country. FY17 was a decent year for the equity market, where the benchmark yielded 17.92%. Your fund outperformed the benchmark by 19.64%. Outperformance was a function of a number of outsized bets in conviction bets in sectors where local demand is strong and companies have the capacity to capture value. Some of our top bets were concentrated in Commercial Banks, Insurance and cable & electric goods (consumer goods) while the fund had remained wary of Oil & Gas (except MARI) because of concerns on oil price stability and Cements because of relatively stretched valuations (except DGKC). We acknowledge a number of investment opportunities that we missed throughout the year and consider them mistakes of omission. We understand that long term superiors returns are a function of humility and super hard work towards finding mispriced securities. We must remain cognizant of the fact that our competitors are equally or better equipped, hardworking and thorough professionals and to compete in that domain we must consistently work towards the singular goal of return maximization with very thin margin of error. Your fund returned negative 8.37 percent during the month while the benchmark declined 8.73 percent, outperforming the benchmark by 0.36 percent. It is pertinent to note that it is very difficult to form any material view on the direction of the stock market or on our selected stocks in the short run. We also believe that commenting on the short term market movements is of limited value (JIT and political noise is a case in point). The real value comes from thorough fundamentals research and diligent process of evaluating discrepancy between price and value. We try to keep trading costs to a minimum and participate only when we see a value in doing so. We believe that our unit holders are long term investors and that we are in the business of managing your investments over the same period. I would like to take this opportunity to reiterate our gratitude for you confidence in JS Investments and in JS Growth Fund in particular, nothing means more to us than your trust in us and we are obliged and humbled to be your investment advisor.

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

Fund -8.37 37.56 60.64 253.17 257.14 12.18Benchmark -8.73 17.92 25.06 114.16 109.63 6.91Difference 0.36 19.64 35.58 139.01 147.51 5.27

* Average Annualized Return since inception as per Morning Star formula

Monthly performance (%) FY17 FY16 FY15 FY14 FY13

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 9.87 3.81 8.28 4.63 1.24January 7.16 -0.79 8.17 1.43 2.12February -1.51 -4.46 -5.12 0.06 7.11March -0.73 4.74 -11.16 6.43 2.25April 2.78 3.49 11.54 3.18 3.00May 3.12 1.02 -2.67 1.78 14.87June -8.37 1.06 2.53 -1.28 -0.87YTD 37.56 3.88 12.42 40.12 56.91Benchmark 17.92 0.37 5.67 25.96 35.95Difference 19.64 3.51 6.75 14.16 20.96

Performance data does not include the cost incurred directly by an investor in the form of sales load etc. Asset allocation (%)

Jun-17 May-17Cash 8.92 8.17Equity 88.74 90.39Other including receivables 2.35 1.44Total 100.00 100.00 Equity sector breakdown (%)

Jun-17 May-17Commercial Banks 14.44 15.43Insurance 14.23 14.81Sugar & Allied Industries 8.62 8.44Cable & Electrical Goods 8.22 8.32Cement 7.78 8.06Others 35.45 35.32Total 88.74 90.39 Top holding (%age of total assets) Shahtaj Sugar Mills Ltd. 7.69Pak Elektron Ltd. 7.38Adamjee Insurance Co. Ltd. 7.16IGI Insurance Ltd. 7.07D. G. Khan Cement Co. Ltd. 5.52Pakistan State Oil Co. Ltd. 4.56Nishat Mills Ltd. 4.17United Bank Ltd. 3.86MCB Bank Ltd. 3.73Rafhan Maize Products Ltd. 3.40 Disclosure for Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 18,411,165/-. If the same were not made the NAV per unit/return of scheme would be higher by Rs. 1.56/0.70%. For details investors are advised to read the Note 10.1 of the latest Financial Statements of the Scheme. * Converted into open end scheme on 19 July, 2013.

Cumulative return is based as per MUFAP stated methodology.

Statistical analysis Fund Fund BM

Information Ratio 0.25 Beta 0.8 1.0Correlation 0.84 Largest Month Gain 18.9% 25.2%Standard Deviation 23.4% Largest Month Loss -35.2% -45.1%Expense Ratio* 3.84% % Positive Months 63.2% 60.9%

*For FY17