PACRA Maintains Stability Rating of JS Microfinance Sector Fund

JS Microfinance Sector Fund (“JSMFSF” or the “Fund”) is a medium risk income fund. The objective of the Fund is to provide investors with competitive and attractive returns while maintaining a medium risk profile and seeking to generate comparatively higher returns than traditional banking channels. The Fund diversifies its investments across the low risk Microfinance sector and authorized investments, with the objective of generating competitive returns relative to fixed income products. As of Jun’26, the Fund’s Assets Under Management (AUM) stood at approximately PKR 35,397 million, compared with approximately PKR 33,714 million as of Dec’25, reflecting an increase in the Fund’s size over the period. In terms of asset allocation, approximately 52.26% of the portfolio was placed in bank deposits, while 28.16% was invested in Pakistan Investment Bonds (PIBs) and 16.70% was invested in Banks and DFIs. The remaining portion was allocated to other instruments. From a credit quality perspective, the Fund’s investment allocation was primarily concentrated in A+ rated avenues, representing approximately 44.96% of the portfolio. A further 28.71% was allocated to Government Securities/AAA rated avenues, while 19.48% was invested in A- rated instruments and 4.52% in AA rated avenues. The remaining exposure was held in other instruments. The Weighted Average Maturity (WAM) of the Fund stood at approximately 91 days as of Jun’26, indicating moderate exposure to interest rate and credit risk. However, the associated credit risk is mitigated through the Fund’s allocation to Government Securities/AAA rated instruments. The unit holding pattern remained concentrated, with the top ten investors accounting for approximately 69.47% of the total units, of which approximately 3.02% was associated with a related party. On an adjusted basis, the concentration stood at approximately 62.85%, indicating elevated redemption pressure. Nevertheless, potential redemption requirements are considered manageable, given the Fund’s allocation to bank placements, which provide liquidity support. In terms of performance, the Fund reported an annualized return of approximately 12.79% as of Jun’26, exceeding both the benchmark return of approximately 11.39% and the peer average return of approximately 10.84%, reflecting performance above comparable funds.
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. It operates as part of the Jahangir Siddiqui (JS) Group, with JS Bank Limited holding a majority stake of around ~85%. The Company offers a wide range of services, including asset management, investment advisory, private equity, venture capital, REIT management, and pension fund management under the Voluntary Pension System Rules, 2005. Led by CEO Ms. Iffat Zehra Mankani, the firm benefits from strong leadership and an experienced eight-member Board comprising independent and non-executive directors. As of June 2026, JS Investments manages approximately PKR 97 billion in assets, reflecting its strong position in Pakistan’s asset management industry.