Muhammad Muneeb Akram 063128

Attique Ahmad 072128

Ferhan Mehmood 071148

Saad Anwar Khawaja 072126

To be Industry Leaders in Financial
Services
Pursuit of Professional Excellence
Launch of NIT in 1962
Establishment of ICP
Boost in industry from 2002
Innovative marketing strategies
and mass media campaigns
Increasingly active role of MUFAP
Founded in 1995
Oldest AMC in Pakistan
Market capitalization of around 4.33
billion (as at Dec 2008)
Best rated AMC in Pakistan with a
rating of AM2+
Manages over USD 400 million in
assets
Integrity
Commitment
Building strong
relationships
Creating Share holder
Value
 Rating Product Rating Definition

Asset manager meets very high investment

Asset Manager Rating AM2+ management industry and benchmarks with
noted strengths in several of the rating factors

Entity Rating - JSIL Obligations supported by the highest capacity

Credit Rating - A1+ For timely repayment
Short Term

Entity Rating - JSIL Very high credit quality. 'AA' ratings denote a
Credit Rating - AA- Very low expectation of credit risk.
Long Term
 Fund Rating Normal Long Term

JS Aggressive Asset Allocation 4 star N/A

JS Fund of Funds 4 Star N/A

JS Growth Fund 3 Star N/A

JS Income Fund 5 star 5 Star

JS Value Fund 5 star N/A

UTP A30+ 4 Star 5 Star

UTP Islamic Fund 4 star N/A

UTP Large Cap. Fund 4 star 5 Star

Unit Trust of Pakistan 5 star 5 Star

High political instability in the
country

Intends to focus on cost

management, consolidation of its
leading position in industry in
structured products
First half of the FY ending December
31, 2008 has been a turbulent period
for the Pakistani stock market.
Imposing a floor mechanism on the
index in August of FY 08.
KSE-100 index fell significantly by 3322
points, depicting a 36.2% decline on
lifting floor on Dec. 15, 2008
Policies of the company
Changing Lifestyle
Career expectations
Growth rate of population
Age distribution of
population
E-investment and online trading of
closed ended mutual funds

Manage finances more quickly and

efficiently.
PICIC Investment,

Meezan
Investment,

Atlas Fund,

First capital INC

Investment industry is a consolidated
industry

This industry is near to its maturity

So huge capital is required to enter in

this industry
Bonds, shares, securities, etc. are some
of the substitutes of mutual funds
Customers/account holders/share
holders are hesitant to invest due to
the current economic recession.

Suppliers have some bargaining

power for investment
Funds are provided/sold by the
company at a set rate for certain type
of funds

Customer cannot bargain on the price

per share
Management Department

Marketing Department

Finance / Accounting
Department
First Asset Management Company in the
private sector in Pakistan

Strong broker network has led to increase

trading

Branches throughout the major cities of

Pakistan

Competent, talented and diversified human

resources, employees and management
All the organizational departments are
not present at all the locations of
country

No advertisement to give awareness to

the masses.

No close ended Islamic funds are

Has capital and capabilities to add new
funds in the present product line

Growth through partnership with strong

companies or by acquiring small
renowned companies.

Growth potential in Islamic Mutual Fund

Tight monetary policy of state bank of
Pakistan

Uncertain political situation in the

country

Terrorism is the biggest threat for

trading
 SWOT MATRIX
Strengths Weaknesses

1. 1st Asset Management Company in the 1. Organizational departments are not

private sector in Pakistan. present at all the locations
2. Strong industry relations. 2. No advertisement to give awareness
3. Branches throughout the major cities of to the masses.
Pakistan. 3. No close ended Islamic funds are
4. Commitment to integrity and offered for investment.
transparency in dealing with customers
and partners.
5. Good experience of making long term
partnerships in dynamic environment.
6. Competent, talented and diversified
human resources employees and
management.

Opportunities S-O Strategy W-O Strategies

1. New funds can be added in product line.
2. High scope of growth of investment in
Pakistan’s economy.
3. Growth through partnership with strong
companies or by acquiring small renowned
companies.
Threats
1. Use fair dealing and industry relations
to acquire small mutual funds like
Golden Arrow, Asian Stocks Fund.
(S2,S4,O3)
2. Should invest in Pakistan’s long term
economic programs. (S5,O2)
3. Use experience to capture the scope
of growth in investment in
Pakistan. (S5,O2)
S-T Strategy
1. Should add Islamic mutual funds
in product line. (W3,O1)
2. Increase the advertisements to
capture growth in Pakistan.
(W2,O3)
W-T Strategies

1. Tight monetary policy of state bank of Pakistan
for trading.
2. Uncertain political situation in the country.
3. Terrorism is the biggest threat for trading
4. Lack of investors’ confidence due to economic
recession.
5. High inflation rates
1. Use the company’s human resource to
give confidence to the investors in high
inflated economy. (S6,T4,T5)
2. Advise the industry to force Government
to stabilize political situation. (S2,T2)
1. Should advertise upfront the
returns on investment to get
confidence of small to large
investors. (W2,T4)
Market penetration and market
development are appropriate
strategies.
 JS PICIC
Investment, Investment AL-Meezan Investment
 JS UTP
Value Fund Large cap

JS Growth Fund
 JS Mutual Funds (Close AL-Meezan Islamic
Ended) Mutual Funds
Critical Success
Weight Rating Score Rating Score
Factors

Service quality 0.22 4 0.88 3 0.66

Financial Stability 0.24 3 0.72 3 0.72

Customer Loyalty 0.22 3 0.66 3 0.66

Market Share 0.21 4 0.84 3 0.63

Islamic Mutual Fund 0.11 1 0.11 4 0.44

Total 1.00 3.21 3.11

 Weighted
Key Internal Factors Weight Rating
Score
Strengths
1st Asset Management Company in the private sector in 0.10 4 0.40
Pakistan.

Strong industry relations. 0.09 4 0.36

Branches throughout the major cities of Pakistan. 0.08 3 0.24

Commitment to integrity and transparency in dealing with 0.13 4 0.52

customers and partners.

Senior management team having working experience in 0.11 4 0.44

different international markets.

Good experience of making long term partnerships in 0.10 3 0.30

dynamic environment.

Competent, talented and diversified human resources 0.13 4 0.52

employees and management.
Weaknesses
Organizational departments are not present at all the 0.08 2 0.18
locations

No advertisement to give awareness to the masses. 0.09 1 0.09

No close ended Islamic funds are offered for investment. 0.09 1 0.09

Total 1.0 3.14

 Weighted
Key external Factors Weight Rating
Score
Opportunities
1. New funds can be added in product line. 0.15 4 0.60

2. High scope of growth of investment in Pakistan’s 0.17 4 0.68

economy.

3. Growth through partnership with strong companies or 0.12 3 0.36

by acquiring small renowned companies.
Threats
1. Tight monetary policy of state bank of Pakistan for 0.13 2 0.26
trading.

2. Uncertain political situation in the country. 0.10 1 0.10

3. Terrorism is the biggest threat for trading 0.09 2 0.18

4. Lack of investors’ confidence due to economic 0.13 1 0.13

recession.

5. High inflation rates 0.11 2 0.22

Total 1.00 2.53

Key Ratios 2008 2007 2006 2005

Operating
Pre tax margin % 44.10 54.00 62.29 46.71
Net Margin % 56.84 52.36 55.03 33.68

Performance
Return on assets % 16.04 21.24 27.57 9.90
Total assets turnover Days 130 146 183 107
Receivables turnover Days 35 198 167 193
Return on equity % 28.56 32.64 44.90 25.50

Leverage
Debt-Equity % 112.71 48.75 79.97 139.34
Interest cover times 3.72 6.43 8.60 4.94

Liquidity
Current times 2.28 15.34 2.01 2.74
Key Ratios 2008 2007 2006 2005

Valuation

Earnings per shares PKR 5.49 5.21 5.32 1.44

Breakup value per share PKR 19.24 15.95 23.68 11.33

Price earning ratio times 17.31 14.20 N/A N/A

Market price to break up value times 4.94 4.63 N/A N/A

Market value per share - year end PKR 95.07 73.90 N/A N/A

Market value per share - High PKR 126.5 74.90 N/A N/A

Market value per share - Low PKR 53.5 61.40 N/A N/A

Market capitalization (PKR in Million) 9,507 7,390 N/A N/A

Key Ratios 2008 2007 2006 2005

Historical trends
Management fee (PKR in Million) 627 462 461 300

Operating profit (PKR in Million) 673 629 679 251

Profit before tax (PKR in Million) 574 537 602 200

Profit after tax (PKR in Million) 549 521 532 144

Assets under management (PKR in Million) 38,974 29,65 22,617 16,285

1

No. of funds under management 16 12 9 9

share capital (PKR in Million) 1,000 1,000 500 500

shareholders equity (PKR in Million) 1,924 1,595 1,184 567

Total assets (PKR in Million) 4,302 2,547 2,353 1,503

No. of employees 189 132 93

Contribution to the national exchequer (PKR in 69 67 41 80

Million)
Strong backing of its good will,
competent management, employees
and branches network
Current recession time has very
negative effect on all the businesses
including investment companies
Company’s strengths are good enough
to overcome its weakness and capture
the opportunities
JSIL should issue Islamic mutual funds.

Company should motivate its

employees to sustain its competitive
position in the industry.