PACRA Assigns Initial Stability Rating to JS Fixed Term Munafa Fund II

JS Fixed Term Munafa Fund II (“the Fund”) is structured as a very low-risk, fixed-return investment vehicle designed to deliver predetermined returns to unit holders, subject to investors remaining invested until the maturity of the respective plan(s). As per the initial assessment conducted in October 2025, the Fund operates under a fixed-rate return framework and comprises four active plans: JSFTMF-IIP1, JSFTMF-IIP2, JSFTMF-IIP3, and JSFTMF-IIP4. As of October 2025, the combined Assets Under Management (AUM) of the active plans stood at PKR 9,927 million, reflecting the Fund’s meaningful scale within Pakistan’s fixed-term investment segment. The Fund remains predominantly sovereign in nature, with 47% invested in Pakistan Investment Bonds (PIBs), 25% allocated to Government of Pakistan Treasury Bills (T-Bills), and 27% maintained in bank deposits, while a marginal balance is held in other instruments. From a credit quality perspective, the Fund exhibits a strong and conservative risk profile, with 72% of assets invested in 'Government Securities/AAA' rated avenues, complemented by a 27% exposure to ‘AA’ rated instruments. The Fund’s WAM of 721 days is positioned toward the higher end of the spectrum, notwithstanding a sizeable allocation to PIBs, which are predominantly floating-rate instruments. The elevated WAM primarily reflects methodological treatment and does not fully mirror the effective repricing dynamics. Default risk remains manageable, given the Fund's predominant investment in Government Securities/AAA rated instruments. Furthermore, the Fund’s duration of 101 days indicates low sensitivity to movements in interest rates. As of Oct’25, investor concentration remained elevated, with the top investors accounting for 100% of the Fund’s units. This concentration heightens sensitivity to potential redemption activity; however, the associated risk is moderated by the Fund’s investment in high-quality sovereign instruments and its exposure to liquid bank placements. Additionally, the Fund benefits from regulatory liquidity management mechanisms available under the NBFC Regulations, which provide further safeguards in managing liquidity under stress conditions.
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, established in 1995, is Pakistan’s oldest private-sector Asset Management Company and is listed on the Pakistan Stock Exchange. As part of the Jahangir Siddiqui (JS) Group, the Company benefits from a strong financial ecosystem, with JS Bank Limited holding a majority stake of approximately 85%. The JS Group has a broad presence across Pakistan’s financial sector, including banking, insurance, brokerage, and asset management, with expanding interests in energy infrastructure and oil marketing. JS Investments Limited is fully licensed to provide asset management, investment advisory, private equity, venture capital, and REIT management services, and also operates as a Pension Fund Manager under the Voluntary Pension System Rules, 2005. Led by Ms. Iffat Zehra Mankani (CEO), who brings over two decades of global experience across multiple asset classes, the Company is supported by a strong governance framework overseen by an eight-member Board of Directors comprising independent and non-executive members. As of October 2025, JS Investments Limited reported Assets Under Management (AUM) of approximately PKR 157.3 billion.