The Pakistan Credit Rating Agency Limited
20-Apr-20
Analyst
Ayesha Qasim
ayesha.qasim@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
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PACRA Maintains Stability Rating of JS Cash Fund
| Rating Type | Stability Rating | |
|
Current (20-Apr-20 ) |
Previous (30-Oct-19 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA+(f) | AA+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating reflects the strength of the fund's credit and interest rate risk profile. The fund's good credit quality and sound liquidity profile emanates primarily from its mandate to invest in government securities and other low duration avenues such as bank placement's and ensuring low exposure to interest rate risk. At end Dec-19, 80% of fund's assets were allocated to banks, remaining funds were invested in Sukuk and commercial paper. Average duration of the fund remained within 45 days. Fund's unit holding pattern is highly concentrated with top 10 investors representing 79% of the net assets.
Going forward, the fund intends to take maximum exposure in T-Bills to gain from the monetary policy easing. Material changes in the fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect 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 fourteen open-end funds and two voluntary pension schemes. The assets under management stood at ~PKR 20.32 bln at end Dec-19.
The board of JS Investment Limited comprises eight members including the Chief Executive Officer. The Chairman Mr. Kamran Jafar is the Deputy CEO of JS Bank Limited, a seasoned banker with twenty one years of proven track record in banking. Mr. Hasnain Raza Nensey is the Chief Executive Officer of JS Investments Ltd since March 2017. He has an aggregate work experience of 23 years of which around 15 years has been in the Financial Industry in Pakistan. Mr. Nensey was associated with the JS Group in various roles including Chief Investment Officer at JS Abamco Limited.