KARACHI: JS Global Banking Sector Exchange Traded Fund (JSGBETF) reported a net loss of Rs1.27 million for the half year ended June 30, 2026, compared with a net profit of Rs35.09 million in the same period last year, according to its unaudited financial statements.

The fund’s financial results were approved by the Board of Directors of JS Global Capital Limited, the management company, at its meeting held on August 13, 2026. The company disclosed no cash dividend, bonus shares, right shares or other corporate action for the period.

Assets expand significantly

Despite the reported loss, the fund’s asset base grew substantially during the six months. Total assets stood at Rs378.01 million as of June 30, 2026, compared with Rs273.53 million at the end of December 2025.

Investments increased to Rs348.94 million from Rs263.23 million, while bank balances rose sharply to Rs27.02 million from Rs9.06 million.

Net assets reached Rs368.57 million by the end of June, up from Rs269.31 million at December 31, 2025. The number of units in issue also increased to 9.12 million from 5.97 million.

However, the net asset value (NAV) per unit declined to Rs40.4132 from Rs45.1111 at the end of 2025, reflecting pressure on per-unit value despite the overall growth in the fund’s asset base.

Investment income affected by market valuation

The fund generated Rs865,735 in profit on bank deposits during the half year, while dividend income amounted to Rs17.83 million. Net gain on the sale of investments stood at Rs20.96 million.

The major drag on profitability came from a net unrealized loss of Rs30.13 million on the remeasurement of investments classified as “fair value through profit or loss.” This resulted in total income of Rs9.53 million for the six-month period, compared with Rs28.56 million a year earlier.

After accounting for operating expenses of Rs2.34 million and other adjustments, the fund recorded a loss before taxation of Rs1.27 million. The same amount was reported as the net loss after taxation, as no tax expense was recorded for the period.

Stronger second-quarter performance

While the half-year result remained in the red, the fund posted a much stronger performance during the April-June quarter.

The fund recorded net income of Rs53.47 million for the quarter ended June 30, 2026, more than double the Rs24.82 million reported in the corresponding quarter of 2025.

The quarterly improvement was supported by investment gains and other income, indicating that the fund’s performance improved considerably during the final quarter of the half-year period.

Cash flows and investor activity

The fund’s cash flow statement showed net cash used in operating activities of Rs74.78 million during the half year, primarily reflecting higher investment activity.

On the financing side, the fund received Rs188.99 million from the issuance of units, while Rs55.35 million was paid against unit redemptions. Dividend payments amounted to Rs40.70 million.

As a result, net cash generated from financing activities stood at Rs92.94 million. Cash and cash equivalents increased from Rs9.06 million at the beginning of the period to Rs27.02 million at June 30, 2026.

Distribution to unit holders

The statement of changes in unit holders’ funds shows that the fund distributed Rs41.58 million during the period, compared with Rs20.60 million in the same period last year.

The fund ended the half year with undistributed profit of Rs179.14 million. However, its NAV per unit fell from Rs45.1111 at the beginning of the period to Rs40.4132 by June 30, 2026.

Overall, JS Global Banking Sector ETF entered the second half of 2026 with a considerably larger asset base and stronger quarterly earnings, although the half-year result was weighed down by unrealized losses on investments and a decline in NAV per unit.