The Pakistan Credit Rating Agency Limited
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Madiha Sohail

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PACRA Maintains Stability Rating of JS Cash Fund

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

JS Cash Fund ("JSCF" or the "Fund") is a low-risk profile Fund. The assigned rating reflects the strong strength of the Fund's credit and interest rate risk profile. As per rating criteria, the fund should maintain at least 50% allocation in 'AAA' rated investment securities. Accordingly, the average allocation in 'AAA' rated avenues remained ~71.95% in CY22. At the end-Dec'22, the Fund had placed 52.8% in T-bills, 27.4% of net assets in banks, ~16.1% in Banks and DFIs Placements, ~2.2% of its net assets in Commercial Papers, ~0.7% in Short Term Sukuk whereas remaining was invested in Others. At the end-Dec'22, the WAM and Duration stood at 50 days limiting the exposure to credit risk and interest rate risk. The unit holding pattern of the Fund is highly concentrated with the top ten investors representing ~89.99% of the Fund's assets; exposing the Fund to a high level of redemption pressure.
Going forward, The Fund may also want to decrease the concentration in 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 stood at ~PKR 44bln at end Dec'22. 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.