PACRA Maintains Stability Rating of JS Microfinance Sector Fund
|Rating Type||Stability Rating|
JS Microfinance Sector Fund (or the 'Fund') is a medium risk profile Fund. The assigned rating reflects the adequate strength of the Fund's credit and interest rate risk profile. As per investment policy the Fund will take a minimum of 70% exposure in the microfinance sector on a quarterly basis. The Fund will invest in avenues rated A- and above and would maintain a WAM within 4-years. While as per rating criteria for the assigned rating the Fund will invest max of 50% in A-rated avenues. During the period under review the Fund remained compliant for assigned rating criteria and imperatively maintaining the liquidity. The Fund had invested ~99% of investment in two banks rated A+. The duration and the WAM of the Fund stood at 1-day in the end Sep’22 (Apr’22: 1-day), limiting the exposure to interest rate and credit risk. The unit holding pattern of the Fund were ~97.12% representing top ten investor concentration.
Any material changes in the fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.
JS Investments Limited is one of the oldest private sector Asset Management Company in Pakistan. The company was established in 1995 and is listed on the Pakistan Stock Exchange. The Company is part of the Jahangir Siddiqui (JS) Group. JS Bank Limited holds ~85% shareholding in the Company. JS Group has strong presence in the financial sector with entities operating in banking, insurance, brokerage, and asset management sectors. The group has recently ventured into energy infrastructure and OMC segments. JS Investments possesses licenses for Asset Management Services, Investment Advisory, Private Equity, Venture Capital services and REIT management. The Company is headed by Ms. Iffat Zehra Mankani. She possess over 20 years of global experience in both public and private markets across multiple asset classes.
The Company’s board of directors comprises eight members including the Chief Executive Officer. The board is dominated by representatives of JS Bank Limited and Jahangir Siddiqui & Company Limited. The board has two independent directors while all the other directors are non-executive directors. The board members possess strong profile and skills suited to the financial services industry. Assets under management of the Company (CIS & VPS) stood at ~PKR 35,810mln at end Sep'22 and are spread across thirteen open-end mutual funds and two voluntary pension schemes. Investment platforms are provided to investors for both conventional and Islamic markets.