The Pakistan Credit Rating Agency Limited
29-Sep-22
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
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PACRA Maintains Stability Rating of JS Cash Fund
| Rating Type | Stability Rating | |
|
Current (29-Sep-22 ) |
Previous (01-Apr-22 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA+(f) | AA+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
JS Cash Fund (or the 'Fund') is a low-risk profile Fund. The assigned rating reflects strong strength of the Fund's credit and interest rate risk profile. The Fund had allocated ~99% in bank placements, mainly AAA rated includes three banks i.e. Bank Alfalah, ABL & HBL in the end Jun'22. The duration and the WAM of the Fund stood at 1 day at end Jun'22 (Dec’21: 3 days), limiting the exposure to interest rate and credit risk. The unit holding pattern of the Fund concentrated with the top ten investor representing ~81.78% of the Fund's asset, giving rise to low level of redemption pressure.
Going forward, material changes in the Fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating. Furthermore, credit quality of the Fund would remain imperative to 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 stood at ~PKR 29.6bln at end Jun'22 and are spread across sixteen open-end mutual funds and two voluntary pension schemes. Investment platforms are provided to investors for both conventional and Islamic markets.