Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of JS Income Fund
Rating Type | Stability Rating | |
Current (05-Apr-24 ) |
Previous (05-Oct-23 ) |
|
Action | Maintain | Maintain |
Long Term | A+(f) | A+(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
JS Income Fund (or the "Fund") is a moderate risk profile fund. The investment 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 as this Fund. The Fund operates a diverse portfolio of investment-grade debt securities, government securities and money market instruments. They include T-Bills, commercial papers, and certificates of deposits due to their low credit risk, making them suitable for investors seeking stability and preservation of capital. At the end of Dec'23, the Fund had invested ~20.78% in AAA rated category, ~13.82% in A rated category, ~48.63% in PIBs whereas the remaining ~16.8% were invested in other avenues. At the end Dec'23, the WAM was 1,030 days; exposing the Fund to high credit risk while duration was 58 days; limiting the exposure to 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. Redemption pressure is addressed through maintenance of sufficient liquidity through allocation in banks.
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.