The Pakistan Credit Rating Agency Limited
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Madiha Sohail

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PACRA Maintains Stability Rating of JS Income Fund

Rating Type Stability Rating
(05-Apr-23 )
(29-Sep-22 )
Action Maintain Maintain
Long Term A+(f) A+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

JS Income Fund (the "Fund" or "JSIF") is a medium risk profile fund. JSIF aims at achieving a high rate of current income consistent with reasonable concern for safety of principal and to provide the investors with liquidity. At the end of Dec'22, the Fund had allocated ~54.6% of assets in Sukuk/TFCs, while ~23.6% of the net assets in Banks, ~10.4% in PIBs, ~8% in Commercial Papers whereas the remaining was invested in Others. Considering the 54.6% investment in longer-term corporate bonds, the WAM was stood at 1,051 days at the end Dec'22, exposing the Fund to high credit risk. While the Duration was 66 days, limiting the exposure to interest rate risk. The top 10 investors' concentration of the Fund, at Dec’22 was ~66.36%, giving rise to a moderate level of redemption pressure.
Going forward, the fund may shift its focus towards investment grade debt securities, government securities and money market instruments based on prevailing market expectations. 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 stood at ~PKR 44bln at end Dec'22.

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.