Karachi: The Board of Directors of JS Investments Limited has presented the annual report for the JS Money Market Fund, detailing its performance for the fiscal year ending June 30, 2025. The report comes amidst a backdrop of shifting economic conditions and strategic policy adjustments.
For FY2025, the JS Money Market Fund reported a return of 14.95%, closely aligned with its benchmark return of 14.79%. The Fund's net assets increased from PKR 1,300.36 million to PKR 1,619.68 million, marking a significant growth. This performance was achieved through strategic investments in short-term money market instruments, including treasury bills and bank balances, aimed at capturing benefits from anticipated monetary easing while maintaining liquidity.
The economic landscape during this period was marked by a moderating growth rate, influenced by challenges in the agriculture sector and limited industrial expansion. Despite these challenges, the macroeconomic stabilization program remained on track, supported by USD 2.1 billion in tranches from the IMF's Extended Fund Facility and a USD 1.3 billion Resilience and Sustainability Facility for climate-resilient investments. Inflation saw a substantial reduction to 4.49% from the previous year's 23.41%, primarily due to stable food and energy prices. This allowed for a more accommodative monetary policy, with the State Bank of Pakistan implementing a cumulative rate cut of 950 basis points, bringing the policy rate down to 11%.
In the external sector, foreign exchange reserves increased to USD 14.51 billion by the end of the fiscal year, and the current account recorded a surplus of USD 2.1 billion, a reversal from the previous year's USD 2.07 billion deficit. The Federal Board of Revenue's tax collections rose 26.13% year-on-year to PKR 11.74 trillion, although they fell short of the targeted PKR 165 billion. The fiscal deficit was contained at 5.4% of GDP, below the 5.8% target.
According to information available from the Pakistan Stock Exchange (PSX), the JS Money Market Fund maintained a robust performance, reflecting the effectiveness of its strategic focus on short-term money market instruments. The fund's asset allocation at the end of the period was primarily in treasury bills (90.02%), with cash and other near-cash instruments making up the remainder.
Looking forward, the FY2026 Federal Budget targets a real GDP growth of 4.2%, up from FY2025's 2.7%, with headline inflation projected at 7.5%. To meet these goals, the FBR has set a tax collection target of PKR 14.13 trillion, supported by initiatives to broaden the tax base and enhance compliance.
In the global arena, geopolitical tensions and trade uncertainties, particularly involving the U.S., India, and Israel, created volatility. However, Pakistan's diplomatic efforts post-India escalation helped stabilize its position in trade discussions.
The JS Money Market Fund's strategy of maintaining a shorter duration to benefit from monetary easing proved advantageous, allowing it to optimize returns while preserving liquidity. The Fund's management, rated 'AM2++' with a 'Stable Outlook' by the Pakistan Credit Rating Agency (PACRA), continues to emphasize strong governance and operational performance.
As of June 30, 2025, the fund had paid a final distribution of Rs. 10.00 per unit, with a net asset value per unit of Rs. 110.73, reflecting its commitment to delivering competitive returns to its investors.