PACRA Maintains Stability Rating of JS Islamic Daily Dividend Fund

JS Islamic Daily Dividend Fund (or the "Fund") is a low risk-profile fund. The investment policy holds that the minimum requirements of the Fund entail that majority of the fund must be invested in Shariah Compliant Authorized Investments. At the end-Dec'21, the allocation in 'AA' rated bank consisted of ~83% of the fund's net assets. Moreover, the Fund had invested ~16% of net assets in commercial paper rated 'AA'. Considerable holding in cash and bank balances enforces the liquidity profile of the Fund. Resultantly, the duration of Fund is low and it was recorded at 13 days at end-Dec'21, limiting the Fund's exposure to interest rate risk. The Weighted Average Maturity was reported at 13 days as of end-Dec'21. The top 10 investors possess a concentration of 99% in the Fund's total assets, which may expose the Fund to high redemption pressure.
Going forward, the Fund may further diversify its asset allocation to ensure lesser investment concentration, depending on market situation. The Fund may improve its unit holding pattern. Material changes in the Fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.

About the Entity
JS Investments Limited is one of 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 strong presence in the financial sector with entities operating in 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. The Company is headed by Ms. Iffat Zehra Mankani. She possess 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 two independent directors while all the other directors are non-executive directors. The board members possess strong profile and skills suited to the financial services industry. Assets under management of the Company (CIS & VPS) stood at ~PKR 22,773mln at end Dec’21 and are spread across thirteen open-end mutual funds and two voluntary pension schemes. Investment platforms are provided to investors for both conventional and Islamic markets.