PACRA Maintains Stability Rating of JS Cash Fund

JS Cash Fund (or the 'Fund') is a low-risk profile Fund. The objective of the Fund is to invest in low risk, short-term fixed income 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 of maintaining liquidity. They include T-Bills, commercial papers, and certificates of deposits due to their low credit risk. At the end-Dec'23, the Fund had allocated ~64.9% of cash in AA rated category and ~7.89% in AAA rated category, ~21.5% in T-Bills, and ~5.9% were invested in other avenues. At the end-Dec'23, the WAM and duration stood at 29 days; limiting the exposure to credit risk and interest rate risk. The unit holding pattern of the Fund is highly concentrated with the top ten investors representing ~83.33% of the Fund's assets at the end of Dec'23; exposing the Fund to a very high level of redemption pressure.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
JS Investments Limited is 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 a 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 RIET management. The Company is headed by Ms. Iffat Zehra Mankani. She possesses 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 three independent directors while all the other directors are non-executive directors. The board members possess strong profiles and skills suited to the financial services industry. Assets under management of the Company stood at ~PKR 66.2bln at the end Dec'23.