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JS Pension Savings FundHalf Yearly Report for the period

ended December 31, 2010

Managing Mutual Funds Better!

CONTENTS

01

Vision and Mission Statement.....................................................................................02

Organization...............................................................................................................03

Directors’ Report to the Participants..........................................................................04

Auditors’ Report to the Participants on Review of Interim Financial Information ..............05

Condensed Interim Statement of Assets and Liabilities...................................................06

Condensed Interim Income Statement.........................................................................07

Condensed Interim Statement of Comprehensive Income.............................................09

Condensed Interim Statement of Cash Flows....................................................................11

Condensed Interim Statement of Movement in Participants’ Sub-Funds...................................12

Notes to the Condensed Interim Financial Statements...................................................13

JS Pension Savings Fund


02

In July 2010, the Board of Directors of JS Investments Limited adoptedthe sustainable growth initiative "JSIL 2010 Onwards ~"proposed bythe newly appointed CEO. The revised Vision, Mission, and Statementof Broad Policy Objectives of JS Investments form the bedrock of "JSIL2010 Onwards ~" and have been framed after a thorough S.W.O.T.Analysis of the Company and assessment of the Macro-economic andFinancial Market Trends.

VISIONTo be recognized as a responsible asset manager respected for continuinglyrealizing goals of its investors.

MISSIONTo build JS Investments into a top ranking Asset Management Company;founded on sound values; powered by refined knowhow; supported bya committed team operating within an accountable framework of social,ethical and corporate responsibility - a strong and reliable institution forits shareholders to own; an efficient service provider and value creatorfor clients; an exciting and fulfilling work place for employees; and aparticipant worth reckoning for competitors.

BROAD POLICY OBJECTIVES

Value creation for clients on a sustainable basisMaintain high standards of ethical behaviors and fiduciary responsibilityManage Investments with Prudence and with the aim of providingconsistent returns better than that of peersTake Products and Services to the People; Create awareness onunderstanding financial goals, risks and rewardsProfessional Excellence - Adapt, Evolve and Continuously ImproveMaintain highly effective controls through strong compliance and riskmanagementA talented, diligent and diverse HR


ORGANIZATION

03

Pension Fund Manager JS Investments Limited7th Floor, The Forum, G-20Khayaban-e-Jami, Block-9, CliftonKarachi-75600Tel: (92-21) 111-222-626Fax: (92-21) 35361724E-mail: [email protected]: www.jsil.com

Board of Directors Munawar Alam Siddiqui ChairmanRashid Mansur Chief Executive OfficerSuleman Lalani Executive DirectorNazar Mohammad ShaikhLt. General (R) Masood ParwaizSadeq SayeedMazharul Haq Siddiqui (Subject to approval of SECP)

Audit Committee Nazar Mohammad Shaikh ChairmanMunawar Alam Siddiqui Member

Lt. General (R) Masood Parwaiz Member

Chief Financial Officer& Company Secretary Suleman Lalani

Trustee Central Depository Company of Pakistan LimitedCDC House, 99-B, Block 'B', S.M.C.H.S.,Main Sharah-e-Faisal,Karachi-74400 Pakistan.Tel: (92-21) 111-111-500Fax: (92-21) 34326040

Auditors Ernst & Young Ford Rhodes Sidat HyderChartered Accountants

Legal Adviser Bawaney & Partners

Transfer Agent Technology Trade (Private) Limited241-C, Block 2, P.E.C.H.S, KarachiTel: (92-21) 34391316-7Fax: (92-21) 34391318

04

DIRECTORS’ REPORT TO THE PARTICIPANTS

The Board of Directors of JS Investments Limited has pleasure in presenting to you the un-audited financial statementsof JS Pension Savings Fund for the period ended December 31, 2010.

Market Review

The equity market depicted robust performance during the half-year ended December 31, 2010 represented by asignificant rise of 21% in the KSE-30 index. Heavy discount to regional markets coupled with relative exchange ratestability have been key reasons behind a USD 249mn foreign inflow which led to this significant improvement. Investorconfidence was largely restored towards the latter half of the six month period in the post-CGT (Capital Gains Tax) era,when volumes recovered sharply to average 90.6mn shares as opposed to 46.0mn shares in the earlier half, representingan increase of 98%.

Earlier, the fiscal year had started on the worst note possible, with Pakistan witnessing the most damaging floods in itshistory. World Bank and the Asian Development Bank estimated the losses rendered through the catastrophe to equalUSD 9.7bn with the agricultural sector being the worst affected. Meanwhile inability of the authorities to get theimplementation of RGST underway, along with high power sector subsidies and delay in foreign aid flows culminatedin continued government borrowings from the SBP to the tune of PKR 168bn. In turn higher government borrowingsalong with increased food prices, power tariffs and petroleum prices, led to a sharp increase in the rate of inflation to14.6% from 12.3% at the start of the year, despite the central bank raising its policy rate cumulatively by 150bps duringthe interval.

However the economy sought some relief as the situation of the country's current account continued to strengthen,culminating in an overall positive current account balance of USD 26mn for the period Jul-Dec '10. This was owingto a surge in exports and a relative lower increase in imports along with consistent inflow of robust remittances andhigher CSF receipts. Consequently, the PKR devalued only slightly by 1% against the USD during the 6 month period,the lowest rate of depreciation since 1HFY08. Combined with a steep discount of close to 50% to average regionalmarket valuations on PER basis, the local markets experienced heavy FPI inflows which drove the market index upwards.

Review of Fund Performance

JS Pension Savings Fund provides an opportunity to the eligible participants to plan for their retirement through regularcontributions in their Pension account. The Fund presently has three sub funds namely Equity Sub-Fund, Debt Sub-Fundand Money Market Sub-Fund. Profit for the period ended December 31, 2010 of each sub fund and the net assets ason December 31, 2010 are provided below:-

Profit/(loss) for the period (Rs. in million) 5.247 1.488 2.539 Net Assets (Rs. in million) 29.092 71.617 60.685 NAV per unit (Rupees) 90.06 137.28 114.26 NAV appreciation during the period (%) 22.23% 5.45% 5.30%

The fund has 142 participants as on December 31, 2010.

Acknowledgement

We wish to express our gratitude to the employees of the Pension Fund Manager and the Trustee for their dedicationand hard work and the participants for their confidence in the Management.


EquitySub-Fund

DebtSub-Fund

Money MarketSub-Fund

On behalf of the Board

Rashid MansurChief Executive OfficerKarachi: February 15, 2011

05

AUDITORS’ REPORT TO THE PARTICIPANTS ON REVIEW OFINTERIM FINANCIAL INFORMATION

Introduction

We have reviewed the accompanying condensed interim statement of assets and liabilities of JS Pension Savings Fund(the Fund) as at 31 December 2010 and the related condensed interim statements of income, comprehensive income,cash flows and movement in participants' sub-funds, together with the notes forming part thereof (here-in-after referredto as "interim financial information") for the six-months' period then ended. Management Company (JS InvestmentsLimited) is responsible for the preparation and presentation of this interim financial information in accordance withapproved accounting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to expressa conclusion on this interim financial information based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of InterimFinancial Information Performed by the Independent Auditor of the Entity". A review of interim financial informationconsists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analyticaland other review procedures. A review is substantially less in scope than an audit conducted in accordance withInternational Standards on Auditing and consequently does not enable us to obtain assurance that we would becomeaware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financialinformation is not prepared, in all material respects, in accordance with approved accounting standards as applicablein Pakistan for interim financial reporting.

Emphasis of Matter

Without qualifying our conclusion, we draw attention to note 8 to the condensed interim financial statements whichexplains the reasons for reversal of provision during the period on account of contribution to the Workers' Welfare Fundamounting to Rs. 480,886. In this regard, the Management Company of the Fund expects that the constitutional petitionpending in the Honorable High Court of Sindh will be decided favorably.

Other Matter

The financial statements of the Fund for the half year ended 31 December 2009 and for the year ended 30 June 2010were reviewed and audited by another firm of Chartered Accountants whose review report dated 26 February 2010contains an emphasis of matter paragraph regarding the Fund's status of compliance with the requirements of investmentand allocation policies for Pension Funds under the Voluntary Pension System Rules, 2005 and the audit report dated17 August 2010 expressed an unmodified opinion on those statements.


Earnst & Young Ford Rhodes Sidat HyderChartered AccountantsKarachi: February 15, 2011

CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIESAS AT 31 DECEMBER 2010

06

AssetsBank balances 4 2,278,902 3,791,445 1,817,786 7,888,133 2,106,218 1,605,853 1,582,314 5,294,385Investments 5 27,630,861 67,739,679 58,854,242 154,224,782 21,498,931 74,998,418 62,390,550 158,887,899Dividend receivable - - - - 99,000 - - 99,000Profit receivable on - 77,874 - 77,874 - 286,850 - 286,850 investments Deposit and other receivables 6 104,874 100,016 100,011 304,901 102,191 100,311 100,215 302,717Total assets 30,014,637 71,709,014 60,772,039 162,495,690 23,806,340 76,991,432 64,073,079 164,870,851

LiabilitiesRemuneration payable to the Pension Fund Manager 4,756 11,766 9,973 26,495 2,902 9,412 7,866 20,180Remuneration payable to the Trustee 4,508 11,357 9,614 25,479 3,533 11,309 9,816 24,658Annual fee payable to Securities and Exchange Commission of Pakistan 4,283 11,757 9,889 25,929 8,110 23,279 22,361 53,750Accrued expenses and other liabilities 7 909,534 57,411 57,814 1,024,759 114,733 377,097 114,292 606,122Total liabilities 923,081 92,291 87,290 1,102,662 129,278 421,097 154,335 704,710

Net assets 29,091,556 71,616,723 60,684,749 161,393,028 23,677,062 76,570,335 63,918,744 164,166,141

Participants' Sub-Funds 29,091,556 71,616,723 60,684,749 161,393,028 23,677,062 76,570,335 63,918,744 164,166,141

Number of units in issue 10 323,028 521,691 531,134 321,352 588,193 589,084

Net assets value per unit 90.06 137.28 114.26 73.68 130.18 108.51

Contingency 8 - - - - - - - -

The annexed notes from 1 to 13 form an integral part of these condensed interim financial statements.


Note EquitySub-Fund

DebtSub-Fund


Total

31 December 2010 (Un-audited)

----------------Rupees----------------

EquitySub-Fund

DebtSub-Fund


Total

30 June 2010 (Audited)

----------------Rupees----------------

For JS Investments Limited(Pension Fund Manager)

ChairmanMunawar Alam Siddiqui

Chief Executive OfficerRashid Mansur

07

CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED)FOR THE HALF YEAR ENDED 31 DECEMBER 2010


IncomeProfit / mark-up on debt securities - 4,183,902 3,367,726 7,551,628 - 3,478,915 3,633,538 7,112,453Unrealised gain on remeasurement of held for trading investments - net 3,949,032 - - 3,949,032 2,465,196 - - 2,465,196Gain / (loss) on sale of investments - net 626,996 (470,615) (3,124) 153,257 2,171,172 877,486 - 3,048,658Dividend income 848,313 - - 848,313 566,741 - - 566,741Mark-up on bank balances / deposits 107,497 146,381 175,414 429,292 109,344 716,848 856,373 1,682,565Element of (loss) / income and capital (loss) / gain in prices of units issued less those in units redeemed - net (37,751) (2,015,423) (482,088) (2,535,262) (43,661) 5,861,072 4,488,824 10,306,235Total income for the period 5,494,087 1,844,245 3,057,928 10,396,260 5,268,792 10,934,321 8,978,735 25,181,848

ExpensesRemuneration to the Pension Fund Manager 192,920 529,583 445,452 1,167,955 176,102 496,185 480,096 1,152,383Remuneration to the Trustee 25,009 68,558 57,666 151,233 23,154 65,110 62,969 151,233Annual fee to Securities and Exchange Commission of Pakistan 4,283 11,757 9,889 25,929 3,909 11,015 10,658 25,582Reversal of Workers' Welfare Fund 8 (76,315) (334,719) (69,852) (480,886) - - - -Auditors' remuneration 38,759 38,759 38,759 116,277 43,142 43,142 43,143 129,427Securities' transaction cost 33,353 - - 33,353 50,931 - - 50,931Printing and stationery 22,861 22,862 22,861 68,584 - - - -Custody & settlement charges 3,629 3,000 3,000 9,629 3,891 3,000 3,000 9,891Bank charges 2,660 16,743 11,559 30,962 9,154 17,860 18,860 45,874Amortisation of formation cost - - - - 25,000 25,000 25,000 75,000Total expenses 247,159 356,543 519,334 1,123,036 335,283 661,312 643,726 1,640,321

Income for the period 5,246,928 1,487,702 2,538,594 9,273,224 4,933,509 10,273,009 8,335,009 23,541,527

Earnings per unit 16.24 2.85 4.78 15.45 18.78 15.05


Note EquitySub-Fund

DebtSub-Fund


Total Half year ended 31 December 2010

----------------Rupees----------------

EquitySub-Fund

DebtSub-Fund


Total Half year ended 31 December 2009

----------------Rupees----------------




08

CONDENSED INTERIM INCOME STATEMENT (UN-AUDITED)FOR THE QUARTER ENDED 31 DECEMBER 2010


IncomeProfit / mark-up on debt securities - 2,181,175 1,743,367 3,924,542 - 1,920,285 2,017,566 3,937,851Unrealised gain / (loss) on remeasurement of held for trading investments - net 3,748,446 - - 3,748,446 (1,152,770) - - (1,152,770)Gain / (loss) on sale of investments - net 423,321 (87,306) 17,368 353,383 939,782 571,719 - 1,511,501Dividend income 579,293 - - 579,293 291,290 - - 291,290Mark-up on bank balances / deposits 53,262 63,285 74,857 191,404 81,001 347,156 296,975 725,132Element of (loss) / income and capital (loss) / gain in prices of units issued less those in units redeemed - net (6,611) 202,040 125,498 320,927 (35,798) 381,386 263,080 608,668Total income 4,797,711 2,359,194 1,961,090 9,117,995 123,505 3,220,546 2,577,621 5,921,672

ExpensesRemuneration to the Pension Fund Manager 100,638 264,970 223,793 589,401 92,981 259,576 252,069 604,626Remuneration to the Trustee 12,904 33,998 28,715 75,617 11,633 32,461 31,522 75,616Annual fee to Securities and Exchange Commission of Pakistan 2,234 5,883 4,968 13,085 2,064 5,762 5,596 13,422Reversal of Workers' Welfare Fund - - - - - - - -Auditors' remuneration 19,403 19,403 19,403 58,209 21,925 21,925 21,925 65,775Securities' transaction cost 21,148 - - 21,148 27,562 - - 27,562Printing, stationary & Postage 5,465 5,466 5,465 16,396 - - - -Custody & settlement charges 1,894 1,500 1,500 4,894 2,176 1,500 1,500 5,176Bank charges 1,898 4,323 4,353 10,574 7,642 13,730 14,577 35,949Amortisation of formation cost - - - - 12,500 12,500 12,500 37,500Total expenses 165,584 335,543 288,197 789,324 178,483 347,454 339,689 865,626

Income / (loss) for the period 4,632,127 2,023,651 1,672,893 8,328,671 (54,978) 2,873,092 2,237,932 5,056,046

Earnings / (loss) per unit 14.34 3.88 3.15 (0.17) 5.25 4.04


Quarter ended 31 December 2010

----------------Rupees----------------

EquitySub-Fund

DebtSub-Fund


Total


----------------Rupees----------------




EquitySub-Fund

DebtSub-Fund


Total

CONDENSED INTERIM STATEMENT OF COMPREHENSIVEINCOME (UN-AUDITED)FOR THE HALF YEAR ENDED 31 DECEMBER 2010

09


Income for the period 5,246,928 1,487,702 2,538,594 9,273,224 4,933,509 10,273,009 8,335,009 23,541,527

Other comprehensive income for the period:

Net unrealised (loss) / gain on revaluation of investment classified as available for sale. - (36,150) 1,512 (34,638) - (885,688) (204,931) (1,090,619)Deficit / (surplus) on revaluation of available-for-sale investments transferred to income on maturity/sale - 244,984 20,896 265,880 - (662,422) - (662,422)

- 208,834 22,408 231,242 - (1,548,110) (204,931) (1,753,041)

Total comprehensive income for the period 5,246,928 1,696,536 2,561,002 9,504,466 4,933,509 8,724,899 8,130,078 21,788,486


Half year ended 31 December 2010Equity

Sub-FundDebt

Sub-FundMoney Market

Sub-Fund Total----------------Rupees----------------

Half year ended 31 December 2009




EquitySub-Fund

DebtSub-Fund

Money MarketSub-Fund Total

----------------Rupees----------------

CONDENSED INTERIM STATEMENT OF COMPREHENSIVEINCOME (UN-AUDITED)FOR THE QUARTER ENDED 31 DECEMBER 2010

10


Income / (Loss) for the period 4,632,127 2,023,651 1,672,893 8,328,671 (54,978) 2,873,092 2,237,932 5,056,046

Net unrealised gain / (loss) on revaluation of investment classified as available for sale - 17,818 941 18,759 - (395,367) 9,274 (386,093)Deficit / (surplus) on revaluation of available-for-sale investments transferred to income on maturity/sale - 23,143 - 23,143 - (662,422) - (662,422)

- 40,961 941 41,902 - (1,057,789) 9,274 (1,048,515)

Total comprehensive income / (loss) for the period 4,632,127 2,064,612 1,673,834 8,370,573 (54,978) 1,815,303 2,247,206 4,007,531


EquitySub-Fund

DebtSub-Fund


Total


----------------Rupees----------------





EquitySub-Fund

DebtSub-Fund


Total

----------------Rupees----------------

Other comprehensive income for the period

11

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)FOR THE SIX MONTHS PERIOD ENDED 31 DECEMBER 2010


Cash Flows from Operating ActivitiesIncome for the period 5,246,928 1,487,702 2,538,594 9,273,224 4,933,509 10,273,009 8,335,009 23,541,527Adjustments for:(Gain) / loss on sale of investments - net (626,996) 470,615 3,124 (153,257) (2,171,172) (877,486) - (3,048,658)Amortization of discount on investments - (3,840,233) (3,367,726) (7,207,959) - (1,215,903) (3,633,538) (4,849,441)Amortization of formation cost - - - - 25,000 25,000 25,000 75,000Unrealized gain on investment in held for trading securities - net (3,949,032) - - (3,949,032) (2,465,196) - - (2,465,196)Element of loss / (income) and capital gains / (losses) included in prices of units issued less in those in units redeemed - net 37,751 2,015,423 482,088 2,535,262 43,661 (5,861,072) (4,488,824) (10,306,235)

708,651 133,507 (343,920) 498,238 365,802 2,343,548 237,647 2,946,997

Operating AssetsDividend receivable 99,000 - - 99,000 (6,475) - - (6,475)Profit receivable - 208,976 - 208,976 - (1,060,640) - (1,060,640)Deposits and other receivables (2,683) 295 204 (2,184) 443 (68,312) 15,785 (52,084)

96,317 209,271 204 305,792 (6,032) (1,128,952) 15,785 (1,119,199)Operating LiabilitiesRemuneration payable to the Pension Fund Manager 1,854 2,354 2,107 6,315 (22,001) (39,649) (37,464) (99,114)Remuneration payable to the Trustee 975 48 (202) 821 (1,453) 1,016 1,258 821Annual fee payable to Securities and Exchange Commission of Pakistan (3,827) (11,522) (12,472) (27,821) (2,901) (320) (400) (3,621)Advance against sale of units - - - - - (28,817,385) (28,817,385) (57,634,770)Accrued expenses and other liabilities 794,801 (319,686) (56,478) 418,637 6,318 66,012 59,886 132,216

793,803 (328,806) (67,045) 397,952 (20,037) (28,790,326) (28,794,105) (57,604,468)1,598,771 13,972 (410,761) 1,201,982 339,733 (27,575,730) (28,540,673) (55,776,670)

Sale of investments 12,135,147 269,850,329 178,011,261 459,996,737 11,128,559 44,212,298 - 55,340,857Purchase of investments (13,691,049) (259,013,138) (171,087,943) (443,792,130) (10,959,142) (70,201,391) (37,734,900) (118,895,433)Cash (used in) inflows from operating activities - net (1,555,902) 10,837,191 6,923,318 16,204,607 169,417 (25,989,093) (37,734,900) (63,554,576)

Cash Flows from Financing Activities - netCash received on issue of units 161,110 7,745,633 7,512,143 15,418,886 218,825 32,544,779 32,192,004 64,955,608Cash paid on redemption of units (31,295) (16,411,204) (13,789,228) (30,231,727) (66,777) (2,364,016) (2,370,745) (4,801,538)Cash Flows from Financing Activities - net 129,815 (8,665,571) (6,277,085) (14,812,841) 152,048 30,180,763 29,821,259 60,154,070Increase / (decrease) in cash and cash equivalents - net 172,684 2,185,592 235,472 2,593,748 661,198 (23,384,060) (36,454,314) (59,177,176)Cash and cash equivalents at beginning of the period 2,106,218 1,605,853 1,582,314 5,294,385 1,225,014 32,172,603 41,420,429 74,818,046Cash and cash equivalents at end of the period 2,278,902 3,791,445 1,817,786 7,888,133 1,886,212 8,788,543 4,966,115 15,640,870


EquitySub-Fund

DebtSub-Fund


Total


----------------Rupees----------------





EquitySub-Fund

DebtSub-Fund


Total

----------------Rupees----------------

CONDENSED INTERIM STATEMENT OF MOVEMENT INPARTICIPANTS' SUB-FUNDS (UN-AUDITED)FOR THE HALF YEAR ENDED 31 DECEMBER 2010

12


Net assets at beginning of the year 23,677,062 76,570,335 63,918,744 164,166,141 19,541,340 37,349,291 35,136,528 92,027,159

Amount received on issue of units 161,110 7,745,633 7,512,143 15,418,886 218,825 32,544,779 32,192,004 64,955,608

Amount paid on redemption of units (31,295) (16,411,204) (13,789,228) (30,231,727) (66,777) (2,364,016) (2,370,745) (4,801,538)

Element of loss / (income) and capital loss / (gain) inprices of units issued less those in units redeemed - net 37,751 2,015,423 482,088 2,535,262 43,661 (5,861,072) (4,488,824) (10,306,235)

Income for the period 5,246,928 1,487,702 2,538,594 9,273,224 4,933,509 10,273,009 8,335,009 23,541,527Other comprehensive income / (loss) for the period - 208,834 22,408 231,242 - (1,548,110) (204,931) (1,753,041)Total comprehensive income for the period 5,246,928 1,696,536 2,561,002 9,504,466 4,933,509 8,724,899 8,130,078 21,788,486

Net assets at end of the period 29,091,556 71,616,723 60,684,749 161,393,028 24,670,558 70,393,881 68,599,041 163,663,480





EquitySub-Fund

DebtSub-Fund


Total


----------------Rupees----------------


EquitySub-Fund

DebtSub-Fund


Total

----------------Rupees----------------

13

NOTES TO THE CONDENSED INTERIM FINANCIALSTATEMENTS (UN-AUDITED)FOR THE HALF YEAR ENDED 31 DECEMBER 2010

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1 JS Pension Savings Fund ("the Fund") has been established under the Voluntary Pension System Rules, 2005 (VPSRules) and has been approved as a pension fund by the Securities and Exchange Commission of Pakistan (SECP)on 14 June 2007. It has been constituted under a Trust Deed, dated 6 June 2007, between JS Investments Limitedas the Pension Fund Manager, a company incorporated under the Companies Ordinance, 1984 and CentralDepository Company of Pakistan Limited as the Trustee, also incorporated under the Companies Ordinance 1984. Accordingly, title to the assets of the Fund is held in the name of the trustee. The registered office of JS InvestmentsLimited is situated at 7th Floor, The Forum, G-20 Khayaban-e-Jami, Block - 9, Clifton, Karachi, Pakistan.

1.2 The Fund is an open end mutual fund and offers units for public subscription on a continuous basis. The unitsare non-transferable except in the circumstances mentioned in Voluntary Pension System Rules, 2005 and canbe redeemed by surrendering to the Fund. Further as per the offering document the Fund shall not distribute anyincome from the Fund whether in cash or otherwise.

1.3 The Fund consists of three sub-funds namely, JS Pension Savings Fund Equity Sub-Fund ("Equity Sub-Fund"), JSPension Savings Fund Debt Sub-Fund ("Debt Sub-Fund") and JS Pension Savings Fund Money Market Sub-Fund("Money Market Sub-Fund") (collectively the "Sub-Funds"). The investment policy for each of the sub-funds are asfollows:

- The Equity Sub-Fund shall have a minimum investment in listed shares of ninety percent (90%) of its Net AssetValue. Investment in equity securities of a single company shall not exceed 5% of net assets value of the equitysub fund, provided that exposure in companies belonging to single sector as classified by Stock Exchange shallnot exceed 20% of net assets of equity sub fund. Any un invested surplus may be invested in government treasurybills or Government securities having less than one year time to maturity.

- The Debt Sub-Fund shall invest atleast 25% of net assets of debt sub fund in debt securities issued by theFederal Government. The weighted average time to maturity of securities held in the portfolio of Debt Sub fundshall not exceed 5 years. Exposure to securities issued by companies in single sector shall not exceed 20% (30%in case of banking sector) of the net assets of the debt sub fund.

- The weighted average time to maturity of net assets of the Money Market Sub-fund shall not exceed 90 days.provided that time to maturity of any asset in the portfolio of Money Market Sub-fund shall not exceed 6 months.

1.4 The Fund offers four types of allocation schemes, as prescribed by the SECP under VPS Rules 2005 vide its Circularno. 36 of 2009 dated 10 December 2009, to the participants of the Fund namely High Volatility, Medium Volatility,Low Volatility and Lower Volatility. The participant has the option to suggest a minimum percentage of allocationto the above allocation schemes (subject to the minimum percentages prescribed in the offering document). Basedon the minimum allocation, the funds are allocated to the above stated sub-funds. The allocation to the sub-funds has to be done at the date of opening of participant's pension account and on an anniversary date thereafter.The contribution amount may be paid by the participant on a periodic basis such as annual, semi annual, quarterlyor monthly basis within 5 days of the close of the period.


14

2. BASIS OF PREPARATION

2.1 These condensed interim financial statements have been prepared in accordance with International AccountingStandard - 34 " Interim Financial Reporting" as applicable in Pakistan.

2.2 These condensed interim financial statements do not include all the information and disclosures required in theannual financial statements and should be read in conjunction with the financial statements of the Fund for theyear ended 30 June 2010.

2.3 These condensed interim financial statements are unaudited but subject to limited scope review by the auditors.

3. ACCOUNTING POLICIES

The accounting policies adopted for the preparation of these condensed interim financial statements are consistentwith those followed in the preparation of the Fund's annual financial statements for the year ended 30 June 2010.

The Fund has adopted the following amended IFRS and IFRIC interpretation which became effective during theperiod:

- IAS 32 - Financial Instruments: Presentation - Classification of Rights Issues (Amendment)- IFRIC 19 - Extinguishing Financial Liabilities with Equity Instruments

In April 2009, the IASB issued amendments to various standards primarily with a view to removing inconsistenciesand clarifying wording. These improvements are listed below:

IFRS 5 – Non-Current Assets Held for Sale and Discontinued OperationsIFRS 8 – Operating SegmentsIAS 1 – Presentation of Financial StatementsIAS 7 – Statement of Cash FlowsIAS 17 – LeasesIAS 36 – Impairment of AssetsIAS 39 Financial Instruments: Recognition and Measurement

The adoption of the above standards, amendments / improvements and interpretations did not have any effecton these condensed interim financial statements.


15


In profit and loss sharing accounts 4.1 2,278,902 3,791,445 1,817,786 7,888,133 2,106,218 1,605,853 1,582,314 5,294,3852,278,902 3,791,445 1,817,786 7,888,133 2,106,218 1,605,853 1,582,314 5,294,385

4.1 This includes bank balances of Rs.0.144 million (2010: 0.923 million) with JS Bank Limited (a related party) which carries profit at 11.5% (2010: 9%) per annum. Other accountscarry profit rates ranging from 5% to 11.90% (2010: 5% to 12.75%) per annum.

5. INVESTMENTS

Investments by category

At fair value through income statement- held for trading

Quoted equity securities 5.1 27,630,861 - - 27,630,861 21,498,931 - - 21,498,93127,630,861 - - 27,630,861 21,498,931 - - 21,498,931

Available for sale investments 5.2

Unlisted debt securities (quoted ) - - - - - 630,100 - 630,100Listed debt securities (quoted ) - 1,425,686 - 1,425,686 - 1,762,798 - 1,762,798Government securities / Government guaranteed - 66,313,993 58,854,242 125,168,235 - 72,605,520 62,390,550 134,996,070

Investments at fair value 27,630,861 67,739,679 58,854,242 154,224,782 21,498,931 74,998,418 62,390,550 158,887,899

EquitySub-Fund

DebtSub-Fund


Total


----------------Rupees----------------

EquitySub-Fund

DebtSub-Fund


Total


----------------Rupees----------------

5.1 Quoted equity securities -held by Equity Sub-Fund

Sectors / companies (Ordinary shares have a face value of Rs 10 each unless otherwise stated)

Oil & GasAttock Petroleum Pakistan Limited (a related party) 3,600 700 480 4,780 - - - - -Oil and Gas Development Company Limited - 3,200 - 3,200 - - - - -Pakistan Oilfields Limited - 6,250 - 1,400 4,850 1,153,800 1,435,406 4.93 0.002Pakistan Petroleum Limited 6,062 - 1,112 674 6,500 875,332 1,411,475 4.85 0.001Pakistan State Oil Company Limited 3,900 - - 3,900 - - - - -Shell Pakistan Limited 4,640 1,200 - 5,840 - - - - -

2,029,132 2,846,881 9.79ChemicalsICI Pakistan Limited 8,300 1,000 - - 9,300 1,039,900 1,341,432 4.61 0.007Engro Polymer and Chemicals Limited 30,000 15,010 - 15,000 30,010 537,348 428,243 1.47 0.005Fauji Fertilizer Bin Qasim Limited - 48,000 - 10,500 37,500 1,105,393 1,339,875 4.61 0.004Fauji Fertilizer Company Limited 9,000 2,400 - - 11,400 1,167,339 1,434,804 4.93 0.002

3,849,980 4,544,354 15.62Construction & MaterialsAttock Cement Company Limited 17,000 2,500 - - 19,500 1,315,286 1,230,645 4.23 0.023D.G Khan Cement Limited - 28,500 - - 28,500 796,316 859,845 2.96 0.008Lucky Cement Limited (a related party) 11,300 9,100 - 20,400 - - - - - 2,111,602 2,090,490 7.19

% of paid upcapital of investee company

% of net assets

of the Sub-Fund

Carryingvalue as at

31 December2010

Cost of holding

as at 31 Dec2010

Holding at end of the period

Disposed during the

period

Bonus received

during the period

Acquired during the

period

Holdingat

beginning of the period

------------------------------Number of shares------------------------------------ --------------------------------Rupees------------------------------

4. BANK BALANCES

Note

EquitySub-Fund

DebtSub-Fund


Total


----------------Rupees----------------

EquitySub-Fund

DebtSub-Fund


Total


----------------Rupees----------------

16


Sectors / companies (Ordinary shares have a face value

of Rs 10 each unless otherwise stated)

General IndustrialsGhani Glass Limited 20,900 5,100 1,950 1,500 26,450 1,309,962 1,303,985 4.48 0.025

Industrial EngineeringAl-Ghazi Tractors Limited 5,000 1,100 - - 6,100 870,609 1,384,700 4.76 0.014

Industrial TransportationPakistan International Container Terminal Limited - 17,932 - 17,932 - - - - -

Automobile & PartsAgriauto Industries Limited 12,420 5,946 - - 18,366 1,589,148 1,399,489 4.81 0.064

(Face value of Rs. 5 each)

Baluchistan Wheels Limited 27,530 7,370 - 70 34,830 1,934,454 1,177,951 4.05 0.2613,523,602 2,577,440 8.86

BeveragesMurree Brewery Limited 10,406 2,670 2,183 - 15,259 1,776,795 1,433,430 4.93 0.088

Food and ProducersRafhan Maize Products Limited 850 - - 177 673 1,222,772 1,419,943 4.88 0.007

Pharma & Bio TechGlaxo Smithkline Pakistan Limited 11,850 - - - 11,850 1,203,932 1,045,052 3.59 0.007

Fixed Line TelecommunicationPakistan Telecommunication Company Limited 61,000 22,000 - 12,000 71,000 1,349,545 1,378,820 4.74 0.002

ElectricityHub Power Company Limited 35,700 47,400 - 46,700 36,400 1,194,431 1,361,724 4.68 0.003

BanksBank Alfalah Limited 90,000 2,900 - 92,900 - - - - -Bank Al-Habib Limited 28,000 15,200 - 5,000 38,200 1,286,602 1,385,132 4.76 0.005Habib Metropolitan Bank Limited 40,600 501 - - 41,101 1,453,387 1,191,518 4.10 0.005Meezan Bank Limited 69,300 18,000 - 6,000 81,300 1,809,431 1,373,970 4.72 0.012MCB Bank Limited - 8,300 - 2,500 5,800 1,222,044 1,325,532 4.56 0.001

5,771,464 5,276,152 18.14 Life InsuranceNew Jubilee Life Insurance Company Limited 16,000 5,000 - - 21,000 884,569 967,890 3.33 0.033

27,098,395 27,630,861 94.99

% of paid upcapital of investee company

% of net assets

of the Sub-Fund

Carryingvalue as at

31 December2010

Cost of holding

as at 31 Dec2010


Disposed during the

period

Bonus received

during the period

Acquired during the

period

Holdingat


------------------------------Number of shares------------------------------------ --------------------------------Rupees------------------------------

17


Unlisted debt securities (quoted) Pak Elektron Limited - privately placed

Sukuk certificates (face vale Rs. 5,000 each) 200 - 200 - - - -

Azgard Nine Limited - Commercial Paper (face value Rs. 100,000 each) note 5.2.1.1 (a related party) - - - - 2,234,980 2,234,980 Less: provision held (2,234,980) (2,234,980)

- - -

5.2.1.1 The commercial paper amounting Rs.2.5 million of Azgard Nine Limited has been settled through issuance of 500 PPTFCs of an equivalent amount in the name of the Fund. However, the management as a matter of prudence has maintained the provision against the said commercial paper.

Credit Rating

% of net assets

of the Sub-Fund

Carrying value as at

31 December2010

Cost of holding

as at 31 Dec2010


Matured / disposed

during the period

Acquired during the

period

Holding at the


--------------------Number of certificates-------------------------- ----------------------Rupees------------------------------

Listed debt securities (quoted)Term finance certificates - face value of Rs. 5,000 eachUnited Bank Limited 300 - - 300 1,498,500 1,425,686 1.99 AAEngro Corporation Limited 69 - 69 - - - -

1,498,500 1,425,686 1.99

Government securities /Government guaranteed 5.2.1.2Karachi Shipyard & Engineering Works Limited - Sukuk certificates (face value of Rs. 5,000) 2,000 - 2,000 - - - - Treasury Bills - 3 - Month (face value of Rs. 100,000 each) 350 1,605 1,738 217 21,430,323 21,426,362 29.92 Treasury Bills - 6 - Month (face value of Rs. 100,000 each) - 695 231 464 43,979,510 43,954,534 61.37 Treasury Bills - 1 - Year (face value of

Rs. 100,000 each) 300 390 680 10 941,387 933,097 1.30

66,351,220 66,313,993 92.59

5.2.1.2 These securities have a maturity period of 3 months to 1 year with a yield of 12.73% to 13.68% per annum.5.2.2 Available-for-sale investments -held by Money market Sub-Fund

5.2 Available-for-sale investments

5.2.1 Available-for-sale investments - held by Debt Sub-Fund

Credit Rating

% of net assets

of the Sub-Fund


31 December2010

Cost of holding

as at 31 Dec2010


Matured / disposed

during the period

Acquired during the

period

Holding at the


--------------------Number of certificates-------------------------- ----------------------Rupees------------------------------

Unquoted debt securitiesAzgard Nine Limited - Commercial Paper (face value Rs. 100,000 each) (See note 5.2.2.1) (related party) - - - - 11,174,902 11,174,902 Less: provision held (11,174,902) (11,174,902)

- - -

% of net assets

of the Sub-Fund


31 December2010

Cost of holding

as at 31 Dec2010


Matured / disposed

during the period

Acquired during the

period

Holding at the


-----------------Number of certificates----------------------- --------------------Rupees---------------------

Note

18


Government securitiesTreasury Bills - 6 Months (face value of Rs. 100,000 each) 35 - 35 - - - -Treasury Bills - 3 Months (face value of Rs. 100,000 each) 600 692 695 597 58,852,729 58,854,242 96.98Treasury Bills - 1 - Year (face value of Rs. 100,000 each) - 460 460 - - - -

58,852,729 58,854,242 96.98

5.2.2.1 The commercial paper amounting Rs.12.5 million of Azgard Nine Limited has been settled through issuance of 2,500 PPTFCs of an equivalent amount in the name of the Fund. However, the management as a matter of prudence has maintained the provision against the said commercial paper.

6. DEPOSIT AND OTHER RECEIVABLES

Security deposit with Central Depository Company of Pakistan Limited 100,000 100,000 100,000 300,000 100,000 100,000 100,000 300,000Profit receivable on depositaccounts with banks 4,874 16 11 4,901 2,191 311 215 2,717

104,874 100,016 100,011 304,901 102,191 100,311 100,215 302,717

7. ACCRUED EXPENSES AND OTHER LIABILITIES

Front end fee payable 42 3,931 3,928 7,901 35 1,448 1,365 2,848Settlement fee payable to Central Depository Company of Pakistan Limited 500 500 500 1,500 500 500 500 1,500Audit fee payable 38,712 38,712 38,712 116,136 37,883 37,883 37,883 113,649Printing & stationery payable 11,000 11,000 11,000 33,000 - - - -Zakat payable - 1,110 1,175 2,285 - - - -Payable against transactions in equity securities 859,280 - - 859,280 - - - -Payable against transactions in government securities - 2,158 2,499 4,657 - 2,547 4,692 7,239Payable to Workers' Welfare Fund 8 - - - - 76,315 334,719 69,852 480,886

909,534 57,411 57,814 1,024,759 114,733 377,097 114,292 606,122

EquitySub-Fund

DebtSub-Fund


Total


----------------Rupees----------------

EquitySub-Fund

DebtSub-Fund


Total


----------------Rupees----------------

% of net assets

of the Sub-Fund


31 December2010

Cost of holding

as at 31 Dec2010


Matured / disposed

during the period

Acquired during the

period

Holding at the


--------------------Number of certificates-------------------------- ------------------Rupees-------------------

Note EquitySub-Fund

DebtSub-Fund


Total


----------------Rupees----------------

EquitySub-Fund

DebtSub-Fund


Total


----------------Rupees----------------

19

8. REVERSAL OF CONTRIBUTION TO WORKER'S WELFARE FUND

The Finance Act 2008 introduced an amendment to the Workers' Welfare Fund Ordinance, 1971 (WWF Ordinance).As a result of this amendment it is alleged that all Collective Investment Schemes / mutual funds (CISs) whose income exceeds Rs.0.5 million in a tax year, have been brought within the scope of the WWF Ordinance, thus rendering them liable to pay contribution to WWF at the rate of two percent of their accounting or taxable income, whichever is higher.In this regard, a constitutional petition has been filed by certain CISs through their trustees in the Honorable High Courtof Sindh, challenging the applicability of WWF to the CISs, which is pending adjudication. However, without prejudice to the above, the Management Company made a provision for WWF contribution in the annual financial statements forthe year ended 30 June 2010.

Subsequent to the year ended June 30, 2010, a clarification was issued by the Ministry of Labour and Manpower (theMinistry) which stated that mutual funds are not liable to contribute to WWF on the basis of their income. This clarificationwas forwarded by Federal Board of Revenue (FBR) (being the collecting agency of WWF on behalf of the Ministry) videits letter dated 06 October 2010 to its members for necessary action. Based on this clarification, the FBR also withdrewnotice of demand which it had earlier issued to one of the mutual funds for collection of WWF. However, the FBR videits letter dated 04 January 2011 have cancelled its earlier letter dated 06 October 2010 ab initio and issued show causenotices to certain mutual funds for collecting WWF. In respect of such show cause notices, one of the mutual fund hasbeen granted stay by Honorable High Court of Sindh vide its order dated 10 February 2011 on the basis of the pendingconstitutional petition in the said court as referred above and the remaining mutual funds are in the process of filingpetitions for stay of proceedings in this case.

In view of the afore mentioned developments during the period, the Management Company now believes that thereis no compelling reason to retain provision on account of WWF contribution in the financial statements. Further, theManagement Company also expects that the constitutional petition pending in the Honorable High Court of Sindhon the subject as referred above will be decided in favour of the mutual funds. Accordingly, the management hasreversed the provision recognised as at June 30, 2010 amounting to Rs.0.48 million during the current period. The aggregateunrecognised amount of WWF as at December 31, 2010 amounted to Rs.0.66 million.

9. CONTRIBUTION TABLE

Contributions (net of front end fee) received during the period.

From:Individuals 2,105 161,110 58,108 7,745,633 65,790 7,302,169 15,208,912

Total 2,105 161,110 58,108 7,745,633 65,790 7,302,169 15,208,912

From:Individuals 2,862 218,825 261,873 32,544,779 272,878 32,192,004 64,955,608

Total 2,862 218,825 261,873 32,544,779 272,878 32,192,004 64,955,608


EquitySub-Fund

DebtSub-Fund


TotalHalf year ended 31 December 2010 (Un-audited)

Units (Rupees) Units (Rupees) Units (Rupees) (Rupees)

Half year ended 31 December 2009 (Un-audited)Equity

Sub-FundDebt

Sub-FundMoney Market

Sub-Fund Total

Units (Rupees) Units (Rupees) Units (Rupees) (Rupees)

20


10. NUMBER OF UNITS IN ISSUETotal units outstanding at beginning of the year 321,352 588,193 589,084 317,389 303,786 300,360

Units issued during the period 2,105 58,108 67,634 2,862 261,873 272,878

Units redeemed during the period (429) (124,610) (125,584) (905) (18,676) (19,554)

Total units in issue at end of the period 323,028 521,691 531,134 319,346 546,983 553,684

11. TRANSACTIONS WITH RELATED PARTIES / CONNECTED PERSONS

11.1 Related parties / connected persons include JS Investments Limited being the Pension Fund Manager, Central Depository Company of Pakistan Limited being the Trustee, Jahangir Siddiqui and Company Limited being the holding company of the Pension Fund Manager, associates of the Pension Fund Manager and its holding company, other funds being managed by the Pension Fund Manager and Key Management Personnel.

JS Investments LimitedUnits held 300,000 200,000 200,000 700,000 300,000 300,000 300,000 900,000Amount held 27,018,000 27,456,000 22,852,000 77,326,000 22,104,000 39,054,000 32,553,000 93,711,000

Key management personnelUnits held 2,625 4,676 1,741 9,042 1,274 2,375 820 4,469Amount held 236,406 641,919 198,881 1,077,206 93,857 309,164 89,019 492,040

11.2 Details of other balances of the Fund held with related parties / connected person:

JS Investments Limited (Pension Fund Manager)Front end fee payable 15 1,376 1,375 2,765 25 520 453 998Remuneration payable 4,756 11,766 9,973 26,495 2,902 9,412 7,866 20,180

Central Depository Company of Pakistan Limited (trustee)Remuneration payable 4,508 11,357 9,614 25,479 3,533 11,309 9,816 24,658Settlement charges payable 500 500 500 1,500 500 500 500 1,500

Azgard Nine LimitedPrivately Placed Term Finance Certificates - 2,500,000 12,500,000 15,000,000 - - - -Provision against PPTFCs - (2,500,000) (12,500,000) (15,000,000) - - - -Commercial paper - - - - - 2,234,980 11,174,902 13,409,882Provision against commercial paper - - - - - (2,234,980) (11,174,902) (13,409,882)

JS Bank LimitedBank Balances 140,640 2,264 1,539 144,443 914,158 5,126 3,747 923,031Profit Receivable 3,817 - - 3,817 2,178 24 30 2,232


EquitySub-Fund

DebtSub-Fund

MoneyMarket

Sub-FundEquity

Sub-FundDebt

Sub-Fund

MoneyMarket

Sub-Fund


Total Total

EquitySub-Fund

DebtSub-Fund

MoneyMarket

Sub-Fund


EquitySub-Fund

DebtSub-Fund

MoneyMarket

Sub-Fund


-----------------------------------Number----------------------------------------------------------------------Un-audited-----------------------------------

21


Half year ended 31 December 2010 (Un-audited)

EquitySub-Fund

DebtSub-Fund

MoneyMarket

Sub-FundEquity

Sub-FundDebt

Sub-Fund

MoneyMarket

Sub-Fund

Half year ended 31 December 2009 (Un-audited)

JS Investments Limited (Pension Fund Manager)Front end fee for the period 37 1,732 1,731 3,500 1,293 256,670 253,613 511,576Remuneration for the period 192,920 529,583 445,452 1,167,955 176,102 496,185 480,096 1,152,383Units redeemed - 100,000 100,000 200,000 - - - -Amount Redeemed - 13,108,000 10,929,000 24,037,000 - - - -

Central Depository Company of Pakistan Limited (trustee)Remuneration for the period 25,009 68,558 57,666 151,233 23,154 65,110 62,969 151,233Settlement charges 3,629 3,000 3,000 9,629 3,891 3,000 3,000 9,891

JS Bank LimitedReturn on Bank Balances 37,793 15,093 28,303 81,188 44,076 32,849 189,932 266,857

Lucky Cement LimitedDividend income 68,000 - - 68,000 40,000 - - 40,000. Attock Petroleum LimitedDividend income 48,000 - - 48,000 45,000 - - 45,000

JS Global Capital LimitedBrokerage expense 11.3.1 1,950 975 650 3,575 3,142 4,123 1,649 8,914

Key management personnelUnits issued 1,351 2,301 920 4,572 1,279 2,368 824 4,471Amount issued 100,000 300,000 100,000 500,000 100,000 300,000 100,000 500,000

11.3.1 The amount disclosed represents the amount of brokerage paid to related party and not the purchase or sale value of securities transacted through them. The purchase or sale value have not been treated as transactions with related party as ultimate counter- parties are not known.

11.4 The transactions with related parties / connected persons are in the normal course of business at contracted rates and terms.

12. GENERAL

12.1 Figures of the condensed interim income statement and condensed interim statement of comprehensive income for the quarters ended 31 December 2010 and 31 December 2009 have not been subject to limited scope review by the auditors.

12.2 Figures have been rounded off to the nearest rupee.

13. DATE OF AUTHORIZATION FOR ISSUE

These condensed interim financial statements were authorized for issue by the Board of Directors of the Pension Fund Manager on February 15, 2011.




11.3 Details of other transactions with related parties during the period are as follows:

Total TotalNote

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