The Pakistan Credit Rating Agency Limited
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Madiha Sohail

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PACRA Assigns Initial Stability rating to JS Microfinance Sector Fund

Rating Type Stability Rating
(09-Jun-22 )
Action Initial
Long Term A(f)
Short Term -
Outlook Stable
Rating Watch -

JS investments limited has launched JS Microfinance sector for making its portfolio more diverse and meaningful for its investors. The objective of JS Microfinance Sector Fund (or the "Fund") aims to contribute to building a sustainable, robust, and inclusive financial sector in Pakistan. The Fund's goal is to achieve a reasonable rate of return while maintaining high liquidity by investing primarily in the medium-risk Microfinance sector. The Objective of JSMFSF is to provide income enhancement by investing in prime quality Microfinance sector products, Microfinance bank deposits, and short-term Money Market instruments. As per investment policy the Fund will take a minimum of 70% exposure in the microfinance sector on a quarterly basis. The Fund will invest in avenues rated A- and above maintain a duration within 4-years. While as per rating criteria for the assigned rating the Fund will invest max of 50% in A-rated avenues.
Going forward, compliance with rating criteria for assigned rating and maintaining liquidity would remain imperative. 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 21,572mln at end Mar'22 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.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.