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 (22-Oct-24 ) |
Previous (05-Apr-24 ) |
|
Action | Maintain | Maintain |
Long Term | AA(f) | AA(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
JS Islamic Daily Dividend Fund ( "JSIDDF" 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. At the end of Jun'24, the Fund had allocated ~43.31% cash in banks, ~31.61% in Sukuks, ~21.39% in GOP/Ijara Sukuks, whereas ~3.70% was invested in other avenues. At the end of Jun'24, the credit quality comprises of ~31.14 in A+ rated avenues, ~24.67% in AA, ~21.39% in AAA, ~10.76% in AA-, and ~8.33% was invested in AA+ rated avenues. Considerable holding in cash and bank balances enforce the liquidity profile of the Fund. The WAM of the Fund stood at 85 days; limiting the exposure of the Fund to credit risk and the duration stood at 75 days; limiting the exposure to interest rate risk of the Fund at end-Jun'24. The top 10 investors concentration of the Fund, at the end of Jun’24 was ~65.37%, keeping redemption pressure to high level.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on rating.
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 the 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. In addition, the Company also acts as Pension Fund Manager under the Voluntary Pension System Rules, 2005.'' 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 98.6bln at the end of Jun'24.