PACRA Maintains Stability Rating of JS Islamic Income Fund

JS Islamic Income Fund ("JS IIF" or the "Fund") is a medium risk profile fund. The investment objective of the Fund is to generate stable returns and ensure capital preservation over medium to long term, by investing primarily in quality Sukuks, Shariah-compliant Government Securities, Shariah-compliant Bank Deposits and other Shariah-compliant debt instruments. At the end of Jun'24, the total cash balances consisted of ~43.3% of the Fund's net assets in banks. Moreover, the Sukuk portfolio includes ~31.6% in corporate sukuk and ~21.4% allocation in GoP Ijara Sukuks whereas remaining ~3.7% was invested in other avenues. At the end of Jun'24 the credit quality of the Fund was ~31.1% in A+ , ~24.7% in AA, ~21.4% in AAA rated avenues, ~10.8% in AA- and ~8.3% was invested in AA+ rated avenues. As of Jun'24, the WAM stood at 628 days; exposing the Fund to a very high level of credit risk whereas duration stood at 58 days; limiting the exposure to interest rate risk. The top 10 investors concentration of the Fund, at Jun’24 was ~70.26%, exposing that the Fund has high level of redemption pressure.
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.