Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of JS Islamic Daily Dividend Fund
Rating Type | Stability Rating | |
Current (05-Apr-24 ) |
Previous (05-Oct-23 ) |
|
Action | Maintain | Maintain |
Long Term | AA(f) | AA(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
JS Islamic Daily Dividend Fund ( or the "Fund") is a low risk profile fund. The investment objective of the Fund is to meet liquidity needs of the investors by providing daily dividend through investment in Shariah Compliant money market instruments. The Fund operates a diverse portfolio of investments; however, the majority of them shall be short-term for the purpose of maintaining sufficient liquidity. They include Treasury 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 allocated ~16.1% in AA rated banks, ~35.99% in AA+ DFIs and ~44.62% in AA and AAA rated Sukuk/TFC. Moreover, the Fund had invested ~3.25% of assets in other avenues at the end of Dec'23. The WAM and duration of the Fund stood at 71 days; limiting the exposure of the Fund to credit risk and interest rate risk at end-Dec'23. The top 10 investors' concentration of the Fund, at the end Dec’23 was ~87.07%; exposing the Fund to a very high level of redemption pressure. Redemption pressure is addressed through the 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.