PACRA Maintains Stability Rating of JS Fixed Term Munafa Fund II

JS Fixed Term Munafa Fund II (“the Fund”) is structured as a 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 assessment conducted in March 2026, the Fund operates under a fixed-rate return framework and comprises four active plans: JSFTMF-IIP1, JSFTMF-IIP6, JSFTMF-IIP7, and JSFTMF-IIP8. As of March 2026, the combined Assets Under Management (AUM) of the active plans stood at PKR 12,888 million (Oct'25: 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 58% invested in Pakistan Investment Bonds (PIBs), 37% allocated to Government of Pakistan Treasury Bills (T-Bills), and 5% 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 94% of assets invested in 'Government Securities/AAA' rated avenues, complemented by a 5% exposure to ‘AA’ rated instruments and the remaining in others. The Fund’s WAM of 864 days reflects a relatively longer maturity profile, primarily driven by its significant allocation to Pakistan Investment Bonds (PIBs). The Fund’s duration of 656 days indicates a relatively higher sensitivity to movements in interest rates, suggesting that changes in market yields may have a more noticeable impact on the Fund’s valuation. Nevertheless, default risk remains manageable, as the Fund continues to maintain a predominant exposure to Government Securities/AAA rated instruments. As of Mar'26, 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 March 2026, JS Investments Limited reported Assets Under Management (AUM) of approximately PKR 114 billion.