The Pakistan Credit Rating Agency Limited
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Ayesha Qasim

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PACRA Maintains Stability Rating of JS Cash Fund

Rating Type Stability Rating
(06-Dec-18 )
(22-Mar-18 )
Action Maintain Initial
Long Term AA+(f) AA+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

JS Cash Fund (JS CF) is an open-end 'Money Market Scheme' that mainly invests in low risk short-term fixed income instruments including money market instruments to provide a regular and reasonable return to investors while ensuring high liquidity. The Fund shall invest primarily in short duration instruments and may even hold some or all of its assets in cash for the purpose maintaining liquidity.

The rating reflects the fund's low risk profile emanating from sizeable allocation of assets towards highly liquid, low credit risk avenues. At end-Jun-18, the portfolio comprised cash balances (~99%) with majority of exposure with AAA banks. Average duration of the fund at end Jun-18 stood at 1 day; maximum duration at a quarter end during FY18 was 37 days. The unit holding pattern of the fund is highly concentrated with the top ten investors representing around 83% of portfolio.

Going forward, the fund intends to maintain investing strategy towards high liquidity and low credit risk mainly in form of AA and above rated banks and government securities with duration not exceeding 45 days. Material changes in the fund's asset allocation strategy could negatively impact the fund's credit quality and exposure to interest rate risk remains critical for the rating.

About the Entity
JS Investments Limited was incorporated in 1995 and listed on the Pakistan Stock Exchange since April 24, 2007. It is one of the oldest private sector asset management company in Pakistan and rated AM2 by JCR. JS Bank Limited owns ~65% of JS Investments Limited. JS Bank Limited carries a long-term rating of 'AA-' and short-term rating of 'A1+' by PACRA. JS investments has a diversified fund slate consisting of eleven open-end funds and two voluntary pension funds. The AUMs are ~PKR 18bln at end-Oct'18.

The board of JS Investment Limited comprises eight members including the Chief Executive Officer. The board has one independent director, four sponsor representatives and two group representatives. The Chairman Mr. Basir Shamsie is a part of the JS Group since 1994 and is the Chairman of JS Investments Limited since 2016. The CEO, Mr. Hasnain Raza Nensey has profound experience in the financial industry.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.