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

MUFAP Recommended Format

Investment philosophy

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 178.80JS-IPSF - Debt Sub Fund 68.19JS-IPSF - MM Sub Fund 54.46

NAV (PKR)JS-IPSF - Equity Sub Fund 764.00JS-IPSF - Debt Sub Fund 192.95JS-IPSF - MM Sub Fund 166.30 Fund manager's review In the month of December, 2016, JS Islamic Pension Savings Debt Sub Fund and Money Market Sub Fund delivered returns of -2.19% annualized and 1.25% annualized respectively. The underperformance is mainly attributable to significant decline across GOP Ijara Sukuk prices while Fixed rental sukuks prices declined more than the floater on the back of market expectations toward bottoming of interest rates.

The index surged 12.16% MoM in Dec-16 albeit foreign selling worth USD144mn, as local participation absorbed the foreign selling which continued throughout the year while during the month local institutions buying activity led the index to its all time record level. Gains were led by E&P, Banks & Cements. E&P sector performed on the back of consensus reached between OPEC and Non OPEC members to put a ceiling on oil production. Banks gaining traction on account of 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 15% YoY in 6MFY17. We expect with aforementioned sectors Steel, Autos, Auto Allied and Glass sectors will continue to perform hence your fund is well positioned to capitalize on further index rally expected in the near to medium term.

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 May 2017 and Pakistan’s higher expected economic growth for the upcoming years. However political stability remains the key determinant factor for the equities market to continue its upward trend.

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. 9.09(ESF), Rs. 1.35 (DSF), Rs. 1.14 (MMF) / 1.2% (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 7.42 41.73 130.16 427.61 660.84Debt Sub Fund 1 -2.19 4.96 14.63 31.25 92.14MM Sub Fund 1 1.25 2.69 13.58 29.52 65.60

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 7.42 3.41 -2.19 7.28 1.25 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 32.93 4.13 6.36 3.91 3.69 2.41 Asset allocation (%) Equity Dec-16 Nov-16Cash 2.27 12.48 Equity 97.46 87.13 Other including receivables 0.27 0.39 Total 100.00 100.00 Debt Dec-16 Nov-16Cash 20.23 16.03 IJARA Sukuk Bond 78.62 82.01 Other including receivables 1.15 1.96 Total 100.00 100.00 Money Market Dec-16 Nov-16Cash 27.10 24.81 IJARA Sukuk Bond 35.16 36.02 TDR 36.99 37.73 Other including receivables 0.75 1.44 Total 100.00 100.00 Equity sector breakdown (%)

Dec-16 Nov-16Cement 14.04 12.99 Oil & Gas Exploration Companies 11.92 4.21 Automobile Assembler 10.33 8.16 Commercial Banks 6.36 2.45 Pharmaceuticals 6.27 7.57 Others 48.54 51.75 Total 97.46 87.13 Top holding (%age of total assets) HinoPak Motors Ltd. 6.97 Meezan Bank Ltd. 6.36 Pakistan National Shipping Corporation Ltd. 5.98 Pakistan Petroleum Ltd. 5.68 Packages Ltd. 5.60 D. G. Khan Cement Co. Ltd. 5.60 Nishat Mills Ltd. 4.77 Thal Ltd. 4.75 Synthetic Products Enterprises Ltd. 4.74 Engro Corporation Ltd. 4.69