Karachi: The JS Momentum Factor Exchange Traded Fund (JSMFETF) reported a moderate decline of 5.84% in its performance for October 2026, according to a recent report by the fund manager. The fund, which tracks the JS Momentum Factor Index, has been under pressure, reflecting a high-risk investment strategy amid volatile market conditions.
The fund, launched on January 7, 2022, operates as an open-end exchange-traded fund with assets worth PKR 931.29 million. The investment philosophy of JSMFETF is to invest in a specific basket of equity securities with the aim of mirroring the performance of its benchmark index. The management fee for the fund is set at up to 0.75% per annum, with an actual fee of the same rate being applied. It carries a high-risk profile as indicated by its management quality rating of AM1 by PACRA as of November 5, 2025.
According to information available from the Pakistan Stock Exchange (PSX), the fund's net asset value (NAV) stood at PKR 10.20. The fund has experienced a year-to-date decline of 5.29%, while the benchmark index reported a slightly lesser decrease of 4.43%. This divergence in performance is also reflected in the tracking difference for the month, which is marked at -0.13%.
The fund's asset allocation as of October 2026 was heavily weighted in equities, accounting for 96.84% of total assets, with the refinery sector receiving the largest allocation at 38.05%. Other notable allocations included oil and gas exploration companies at 21.27% and investment banks at 11.49%. The fund's top holdings featured Attock Refinery Ltd. with a 19.10% share and National Refinery Ltd. at 18.95%.
The total expense ratio for the month was 3.14%, inclusive of government levies and fees, while the year-to-date expense ratio was recorded at 2.50%. The fund maintains a market pricing mechanism aligned with PSX market hours, with no front-end or back-end load applied.
Despite the challenges, the fund has shown robust long-term performance, with a return of 268.32% since inception compared to the benchmark's 281.92%. The fund's investment committee, which includes notable members such as Ms. Iffat Zehra Mankani and Mr. Syed Hussain Haider, CFA, CIPM, continues to focus on maintaining a strategic approach to navigating the high-risk investment environment.