The Pakistan Credit Rating Agency Limited
05-Apr-23
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 Government Securities Fund
| Rating Type | Stability Rating | |
|
Current (05-Apr-23 ) |
Previous (29-Sep-22 ) |
|
| Action | Maintain | Initial |
| Long Term | AA(f) | AA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
JS Government Securities Fund ( "Fund" or the "JSGSF") is an open-end Income Fund that aims to generate a competitive return with low risk, by investing primarily in Government Securities. At the end Dec'22, the Fund has invested of ~78.8% in PIBs, ~18.7% in Banks whereas the remaining was invested in Others. Considering the high investment in longer-term PIBs , the WAM of the Fund stood at 1048 days at end Dec'22, exposing the fund to high credit risk and mark-to-market losses. The Duration of the Fund stood at 70 days at end Dec'22, limiting the exposure to interest rate risk. The unit holding pattern of the Fund was ~100% representing the top five investors' concentration; exposing the Fund to a high level of redemption pressure.
Going forward, the Fund aims to provide diverse portfolio of government securities and money market instruments. 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.