JS Aggressive Asset Allocation Fund

Transcription

1 Quarterly Report for the ended

2 CONTENTS Vision and Mission Statement...02 Organization...03 Directors' Report to the Unit Holders...04 Condensed Interim Statement of Assets and Liabilities...05 Condensed Interim Income Statement...06 Condensed Interim Statement of Comprehensive Income...07 Condensed Interim Cash Flow Statement...08 Condensed Interim Statement of Movement in Unit Holders' Fund...09 Condensed Interim Distribution Statement...10 Notes to the Condensed Interim Financial Statements

3 In July, the Board of Directors of JS Investments Limited adopted the sustainable growth initiative "JSIL Onwards ~"proposed by the newly appointed CEO. The revised Vision, Mission, and Statement of Broad Policy Objectives of JS Investments form the bedrock of "JSIL Onwards ~" and have been framed after a thorough S.W.O.T. Analysis of the Company and assessment of the Macro-economic and Financial Market Trends. VISION To be recognized as a responsible asset manager respected for continuingly realizing goals of its investors. MISSION To build JS Investments into a top ranking Asset Management Company; founded on sound values; powered by refined knowhow; supported by a committed team operating within an accountable framework of social, ethical and corporate responsibility - a strong and reliable institution for its shareholders to own; an efficient service provider and value creator for clients; an exciting and fulfilling work place for employees; and a participant worth reckoning for competitors. BROAD POLICY OBJECTIVES Value creation for clients on a sustainable basis Maintain high standards of ethical behaviors and fiduciary responsibility Manage Investments with Prudence and with the aim of providing consistent returns better than that of peers Take Products and Services to the People; Create awareness on understanding financial goals, risks and rewards Professional Excellence - Adapt, Evolve and Continuously Improve Maintain highly effective controls through strong compliance and risk management A talented, diligent and diverse HR 02

4 ORGANIZATION Management Company JS Investments Limited 7th Floor, The Forum, G-20 Khayaban-e-Jami, Block-9, Clifton Karachi Tel: (92-21) Fax: (92-21) Website: Board of Directors Rashid Mansur Suleman Lalani Nazar Mohammad Shaikh Fayaz Anwar Lt. General (R) Masood Parwaiz Sadeq Sayeed Chief Executive Officer Audit Committee Nazar Mohammad Shaikh Lt. General (R) Masood Parwaiz Member Member Chief Financial Officer & Company Secretary Suleman Lalani Trustee Central Depository Company of Pakistan Limited CDC House, 99-B, Block 'B', S.M.C.H.S., Main Sharah-e-Faisal, Karachi Pakistan. Tel: (92-21) Fax: (92-21) Auditors KPMG Taseer Hadi & Co. Chartered Accountants Legal Adviser Bawaney & Partners Transfer Agent Technology Trade (Private) Limited 241-C, Block 2, P.E.C.H.S, Karachi Tel: (92-21) Fax: (92-21)

5 DIRECTORS REPORT TO THE UNIT HOLDERS 04

6 CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES AS AT SEPTEMBER 30, Assets Note (Unaudited) Bank balances 32,442,841 58,811,176 Investments 4 96,507, ,516,610 Dividend, prepayment and other receivables 5 5,711,985 1,037,625 Security deposits 2,600,000 2,600,000 Total assets 137,262, ,965,411 Liabilities June 30, (Audited) Amount payable on redemption of units 184, ,762 Remuneration payable to the management company 224,212 25,263 Remuneration payable to the trustee 57,534 57,529 Annual fee payable to the Securities and Exchange Commission of Pakistan 34, ,510 Creditors, accrued and other liabilities 6 976,507 10,123,131 Total liabilities 1,477,354 10,767,195 Net assets Rupees 135,785, ,198,216 Unit holders' funds Rupees 135,785, ,198,216 Number of units in issue Number 6,813,509 3,591,286 Net assets value per unit Rupees The annexed notes from 1 to 10 form an integral part of these condensed interim financial statements. For JS Investments Limited (Management Company) Rashid Mansur Chief Executive Officer 05

7 CONDENSED INTERIM INCOME STATEMENT (UNAUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, Income Note Quarter ended 2009 Gain on sale of investment - net 2,972,375 29,551,897 Dividend income 465, ,075 Return on bank balances 910,285 1,282,414 on debt securitites 701,437 - Element of (loss) / income and capital (losses) / gains in prices of units sold less those in units redeemed (261,007,642) 29,907,379 (255,957,917) 61,633,765 Unrealised gain on held for trading investments - net 2,605 19,351,050 Expenses (255,955,312) 80,984,815 Remuneration to the management company 733,629 1,538,581 Remuneration to the trustee 176, ,439 Annual fee to the Securities and Exchange Commission of Pakistan 34,847 48,722 Listing fee 7,500 25,000 Amortisation of formation cost - 50,000 Bank & settlement charges 91,114 34,845 Securities transaction cost 479,645 1,722,284 Auditors' remuneration 151, ,350 Printing, stationery & postage 36,000 49,855 Reversal of contribution against workers welfare fund 7 (1,885,135) Mutual fund rating fee - 25,000 (174,007) 3,830,076 Net (loss) / income for the Rupees (255,781,305) 77,154,739 The annexed notes from 1 to 10 form an integral part of these condensed interim financial statements. For JS Investments Limited (Management Company) Rashid Mansur Chief Executive Officer 06

8 CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, JS Aggressive Asset Allocation Fund Quarter ended 2009 Net (loss) / income for the (255,781,305) 77,154,739 Other comprehensive income for the Net unrealised gain on revaluation of investments classified as available for sale. - - Total comprehensive (loss) / income for the Rupees (255,781,305) 77,154,739 The annexed notes from 1 to 10 form an integral part of these condensed interim financial statements. For JS Investments Limited (Management Company) Rashid Mansur Chief Executive Officer 07

9 CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, Quarter ended 2009 Cash Flows from operating activities Net (loss) / income for the (255,781,305) 77,154,739 Adjustments for: Net (gain) / loss on sale of held for trading investments (2,972,375) (29,551,897) Amortisation of formation cost - 50,000 Amortization of premium / (discount) on investments (701,437) Element of loss / (income) and capital losses / (gains) in prices of units sold less those in units redeemed - net 261,007,642 (29,907,379) Unrealised gain on held for trading investments - net (2,605) (19,351,050) 257,331,225 (78,760,326) 1,549,920 (1,605,587) (Increase) / decrease in dividend, prepayment and other receivables (4,674,360) (9,702,058) Increase / (decrease) in liabilities Amount payable on redemption of units (195,509) - Remuneration payable to the management company 198,949 (379,410) Remuneration payable to the trustee 5 (1) Annual fee payable to Securities and Exchange Commission of Pakistan (146,662) (222,982) Creditors, accrued and other liabilities (9,146,624) 29,183 (9,289,841) (573,210) (12,414,281) (11,880,855) Sale of held for trading investments 631,316, ,898,896 Purchase of held for trading investments (622,628,350) (518,931,113) Cash (used in) / generated from operating activities (3,726,557) 5,086,928 Cash flows from financing activities Cash received on issue of units - 3,672,500 Cash paid on redemption of units (22,641,778) (28,737,870) Cash used in financing activities (22,641,778) (25,065,370) (Decrease) / increase in cash and cash equivalents - net (26,368,335) (19,978,442) Cash and cash equivalents at beginning of the year 58,811,176 77,649,343 Cash and cash equivalents at end of the Rupees 32,442,841 57,670,901 The annexed notes from 1 to 10 form an integral part of these condensed interim financial statements. Rashid Mansur Chief Executive Officer For JS Investments Limited (Management Company) 08

10 CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND (UNAUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, Quarter ended 2009 Net assets as at the beginning of the 153,198, ,975,624 Cash received on issue of *4,342,647 units (2009: 93,168 units) - 3,672,500 Cash paid on redemption of 1,120,423 units (2009: 642,895 units) (22,641,778) (28,737,870) (22,641,778) (25,065,370) Element of loss / (income) and capital losses / (gains) in prices of units sold less those in units redeemed - net 261,007,642 (29,907,379) Surplus on revaluation of available-for-sale investments (recognised directly in net assets) 2,376 - Net income / (loss) for the (255,781,305) 77,154,739 Net assets as at the end of the Rupees 135,785, ,157,614 * This includes 4,342,647 units (2009: Nil units) issued as bonus units. The annexed notes from 1 to 10 form an integral part of these condensed interim financial statements. For JS Investments Limited (Management Company) Rashid Mansur Chief Executive Officer 09

11 CONDENSED INTERIM DISTRIBUTION STATEMENT (UNAUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, Quarter ended 2009 (Deficit) as at July 1 (205,930,347) (298,301,974) Final distribution for the year ended 30 June Rs per unit (2009: Nil) (83,856,520) - (289,786,867) (298,301,974) Net (loss) / income for the (255,781,305) 77,154,739 (Deficit) at the end of the Rupees (545,568,172) (221,147,235) The annexed notes from 1 to 10 form an integral part of these condensed interim financial statements. For JS Investments Limited (Management Company) Rashid Mansur Chief Executive Officer 10

12 NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 1. LEGAL STATUS AND NATURE OF BUSINESS JS Aggressive Asset Allocation Fund ("the Fund") was established under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (NBFC Rules) as an open-end unit trust scheme. The Fund is governed under Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 and Non-Banking Finance Companies and Notified Entities Regulations, The Fund was constituted under a Trust Deed, dated 19 April 2005 between JS Investments Limited as the management company, a company incorporated under the Companies Ordinance,1984 and the Central Depository Company of Pakistan Limited as the Trustee, also incorporated under the Companies Ordinance, The Fund offers units for public subscription on a continuous basis. The units are transferable and can also be redeemed by surrendering them to the fund. The units are listed on the Lahore Stock Exchange. The principal activity of the Fund is to make investments primarily in equity securitie of large, mid and small capital base companies, fixed rate corporate debt instruments, government securities and other money market instruments. The registered office of JS Investments Limited is situated at 7th Floor, The Forum, G-20 Khayaban-e-Jami, Block- 9, Clifton, Karachi. Title to the assets of the Fund is held in the name of Central Depository Company as a Trustee of the Fund. 2. BASIS OF PRESENTATION These condensed interim financial statements are unaudited and have been prepared in accordance with the requirements of the International Accounting Standard 34 "Interim Financial Reporting" as applicable in Pakistan, Trust Deed, the NBFC Rules and the Non Banking Finance Companies and Notified Entities regulations 2008 and in compliance with the Listing Regulations of the Lahore Stock Exchange. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies adopted in the preparation of these condensed interim financial statements are consistent with those followed in the preparation of the funds' annual financial statements for the year ended June 30,. 11

13 Note (Unaudited) June 30, (Audited) 4. Investments - at fair value through profit or loss - held for trading Listed equity securities ,583, ,516,610 Available for sale investment ,923,880 - Rupees 96,507, ,516, Listed equity securities* * Ordinary shares/certificates have a face value of Rs. 10/- each unless stated otherwise Holding at beginning of the Acquired during the Number of shares Bonus/Right received during the Disposed during the Holding at the end of the Market value / Carrying value at (Rupees) % of Net Assets % of investee Capital Sectors / Companies Oil and Gas Pakistan State Oil Company Limited 30,000 65,289-75,000 20,289 5,451, Attock Refinery Limited 51,000 41,018-92, Attock Petroleum Limited 28,000-28, Pakistan Oilfields Limited 50, , ,334 43,465 10,306, Oil & Gas Development Company Ltd , , Pakistan Petroleum Limited 64,000 27,500 4,000 76,500 19,000 3,275, ,034, Chemicals Engro Corporation Limited 59, , ,852 18,248 3,178, ICI Pakistan Limited - 47,841-47, ,178, Construction & Materials D. G. Khan Cement Company Limited 150, , , ,092 9,307, Lucky Cement Limited 100,000 67, ,500 20,000 1,383, Attock Cement Pakistan Ltd 120, ,000 7,720, ,411, Personal Goods Nishat Mills Limited 130, , , ,440 6,046,

14 Holding at beginning of the Acquired during the Number of shares Bonus/Right received during the Disposed during the Holding at the end of the Market value / % of Carrying value at Net Assets (Rupees) % of investee Capital Fixed Line Telecommunication Pakistan Telecommunication Company Limited 400, , Electricity The Hub Power Company Limited 300,000 50, , Nishat Power 1,727 1, Banks MCB Bank Limited 45, , ,489 35,719 6,726, United Bank Limited - 25, ,000 1,285, National Bank of Pakistan Limited - 276, ,000 30,000 1,901, ,913, Held for trading investments as at 56,583, Cost of held for trading investments as at 55,943, Available for sale investments Number of holdings at beginning of the Acquired during the Matured / disposed during the Number of holdings at ending of the Market value of holdings (Rupees) T-Bills 6 months T-Bills 3 months T-Bills 3 months ,923, Cost of holding as at June 30, 39,923,

15 5. DIVIDEND, PREPAYMENT AND OTHER RECEIVABLES Note (Unaudited) June 30, (Audited) Receivables against transactions in marketable securities 4,978,921 - Dividend receivable 450,630 1,017,748 Prepaid listing fee 22,500 - Return receivable on bank balances 259,934 19,877 Rupees 5,711,985 1,037, CREDITORS, ACCRUED AND OTHER LIABILITIES Payable against transactions in marketable securities 163,419 7,620,098 Audit fee 485, ,100 Zakat payable 5,119 2,361 Contribution against workers welfare fund 7-1,885,135 Other expenses payable 322, ,437 Rupees 976,507 10,123, REVERSAL OF CONTRIBUTION TO WORKERS WELFARE FUND The Finance Act, 2008 brought an amendment in section 2 (f) of the Workers' Welfare Fund Ordinance, 1971 (the WWF Ordinance) with the intention to make the definition of "Industrial Establishment" applicable to any establishment to which the West Pakistan Shop and Establishment Ordinance, 1969 (1969 Ordinance) applies. As a result of this amendment, the Fund has made provision of Rs. 1,885,135 for Workers Welfare Fund being two percent of income of the Fund in the financial statements for the year ended June 30,. However, the above provision was reversed and further provisioning was discontinued with effect from August 24, on the basis of a clarification issued by the Ministry of Labour and Manpower that the income of Mutual Funds is exempt from the levy of WWF under the law. 8. TRANSACTIONS WITH RELATED PARTIES 8.1 Detail of balances with related parties as at end JS Investments Limited Remuneration payable to the management company Rupees 224,212 25,263 JSIL - Staff Provident Fund Units held 22, (Jun : 10, l) units Rupees 457, ,543 Central Depository Company of Pakistan Limited Remuneration payable to the trustee Rupees 57,534 57,529 Settlement charges payable Rupees 3, JS Fund of Funds Units held - 703, (Jun : 318, ) units Rupees 14,011,388 13,575,509 JS Bank Limited Bank balances Rupees 5,887,934 6,379,625 Profit receivable Rupees 82,944 19,877 EFU Life Assurance Limited Units held - 230, (Jun : 104, ) units Rupees 4,585,252 4,448,858 14

16 Note 8.2 Detail of transactions with related parties during the Quarter ended 2009 JS Investments Limited Remuneration for the Rupees 733,629 1,538,581 JSIL - Staff Provident Fund Bonus - 12, (Sep 2009: Nil) units Rupees 242,774 - Central Depository Company of Pakistan Limited Remuneratiion for the Rupees 176, ,439 Settlement charges for the Rupees 14,330 19,132 JS Fund of Funds Issue of units Nil (Sep 2009: 76, ) units Rupees - 2,991,033 Redemption of units Nil (Sep 2009: 43, ) units Rupees - 1,990,568 Bonus 384, (Sep 2009: Nil) units Rupees 7,430,571 - JS Bank Limited Return on bank deposits Rupees 197, ,946 JS Global Capital Limited Brokerage expenses Rupees 200, ,897 EFU Life Assurance Limited Bonus 125, (Sep 2009: Nil) units Rupees 2,431, The amount disclosed represents the amount of brokerage paid to the 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 related. 8.3 Other transactions with related parties / connected persons are in the normal course of business and at agreed rates. 9 DATE OF AUTHORISATION FOR ISSUE These condensed interim financial statements were authorised for issue by Board of Directors of management Company on October 22,. 10 GENERAL 10.1 Figures have been rounded off to the nearest rupee Corresponding figures have been rearranged, wherever necessary. Rashid Mansur Chief Executive Officer For JS Investments Limited (Management Company) 15

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