PACRA Maintains Stability Rating of JS Government Securities Fund
JS Government Securities Fund (or the "Fund") reflects the fund's medium risk profile. 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 assigned rating reflects the Fund's moderate credit and interest rate risk profile emanating from its investment strategy. As of Jun'23, the Fund had allocated ~99.28% in T-Bills, ~0.02% in PIBs and ~0.63% in banks. As of Jun'23, the WAM and duration of Fund stood at 82 days, exposing the Fund to low credit risk and interest rate risk. As of Jun'23, the unit holding pattern of the Fund was ~99.99% representing top seven investor concentration; exposing the Fund to high level of redemption pressure. However, the ability to meet redemption remained sound on the back of strong liquid profile. During FY23, the Fund remained compliant with the credit quality criteria throughout the period; given the attractive interest rate environment. The Fund's performance during the period remained in line with peers and gave an annualized return of 15.55%.
Going forward, any material changes in the Fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating. Risk may vary slightly from time to time considering the volatility of economic conditions.
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 REIT management. The Company is headed by Ms. Iffat Zehra Mankani. She possess 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 two independent directors while all the other directors are non-executive directors. The board members possess strong profile and skills suited to the financial services industry. Assets under management of the Company stood at ~PKR 36.2bln at end of Jun'23.