PACRA Maintains Stability Rating of JS Microfinance Sector Fund

JS Microfinance Sector Fund (or the "Fund") is a moderate risk profile Fund. The objective of the Fund is to provide income enhancement by investing in prime quality Microfinance sector products, Microfinance bank deposits and short-term 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 allocated ~89.36% in A rated Banks , ~8.23% in AAA rated Bank , and ~2.68% were invested in other avenues. Considerable holding in cash and bank balances strengthens the liquidity profile of the Fund. At the end Dec'23, the WAM and duration was 19 days and 2 days; liimiting the exposure to credit risk and interest rate risk. The top 10 investors concentration of the Fund, at Dec’23 was ~94.15% ; 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.