Analyst
Afnan Iqbal
afnan.iqbal_old@pacra.com_old
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of JS Income Fund
Rating Type | Stability Rating | |
Current (30-Oct-19 ) |
Previous (30-Apr-19 ) |
|
Action | Maintain | Maintain |
Long Term | A+(f) | A+(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
The fund's good credit quality and sound liquidity profile emanates primarily from its mandate to invest in good credit quality instruments and banks. The fund adheres to very conservative duration limit, ensuring low exposure to interest rate risk. At end-Jun'19, 71% of fund's assets were allocated to bank placement's, whereas 20% to sukuk/TFCs. The unit holding pattern of the fund is highly concentrated with top 10 investors representing 83% of the net assets which exposes the fund to redemption pressure.
Going forward, the fund's management intends to increase exposure towards PIBs. 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 was incorporated in 1995 and listed on the Pakistan Stock Exchange since April 24, 2007. It is one of the oldest private sector asset management company in Pakistan and rated AM2 by JCR. JS Bank Limited owns ~65% of JS Investments Limited. JS Bank Limited carries a long-term rating of 'AA-' and short-term rating of 'A1+' by PACRA. JS investments has a diversified fund slate consisting of twelve open-end funds and two voluntary pension funds. The assets under management were ~PKR 19.07 bln at end-Jun'19.
The board of JS Investment Limited comprises eight members including the Chief Executive Officer. The board comprises two independent directors, one executive, and 5 non-executive directors. The Chairman Mr. Kamran Jafar is the Deputy CEO of JS Bank Limited, a seasoned banker with twenty years of a proven track record in banking. In the year 2016, he joined as a member of the Board of Directors of JS Investments Limited. The CEO, Mr. Hasnain Raza Nensey has profound experience in the financial industry.