PACRA Maintains Stability Rating of JS Islamic Daily Dividend Fund
|Rating Type||Stability Rating|
JS Islamic Daily Dividend Fund (or the "Fund") is a low risk-profile fund. The assigned rating reflects the low strength of the Fund's credit and interest rate risk profile. The Fund had allocated ~55.4% in banks rated AA and above. Whereas, ~42.1% in TFC/Sukuks rated AA and above. Considerable holding in cash and bank balances enforces the liquidity profile of the Fund. The duration of Fund stood at 36 days in the end Jun'22 (Dec'21: 13 days), exposing the Fund to low level of interest rate risk. The Weighted Average Maturity was also reported at 36 days at the end Jun'22 (Dec'21: 13 days), exposing the Fund to low level of credit risk. The top 10 investors concentration of the Fund, at Jun’22 was ~99%, of which ~97% are related parties, keeping redemption pressure to low level.
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.
.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.