PACRA Maintains Stability Rating of JS Government Securities Fund

JS Government Securities Fund (or the "Fund") is a low risk profile Fund. The objective of the Fund is to preserve investor’s capital while providing a regular stream of current income on an annual basis which is higher than that offered by commercial banks on deposits of a similar liquidity profile. The Fund shall invest in government securities to generate a competitive return with low risk. At the end Dec'23, the Fund had invested ~56.37% in T-Bills, ~28.4% in PIBs, ~7.83% in AAA rated category, ~2.76% in AA rated category, and ~4.65% were invested in other avenues. As of Dec'23, the WAM and duration of Fund stood at 601 and 197 days respectively, exposing the Fund to credit risk and interest rate risk. However, the risks are mitigated due to investments in government securities. The unit holding pattern of the Fund were ~99.09% representing top ten investors concentration; exposing the Fund to a very high level of redemption pressure. Redemption pressure is addressed by maintaining sufficient liquidity through allocation in short-term instruments.
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.