PACRA Maintains Stability Rating of JS Income Fund
|Rating Type||Stability Rating|
The rating reflects adequate strength of the fund's credit and interest rate risk profile. Investment in sovereign instruments and considerable placement in banks enhances the credit and liquidity profile of the fund. At end Dec'20, ~18% of fund's assets were invested in PIBs, while ~30% of funds were deposited with banks primarily rated 'A' and above. The fund also had an exposure of ~35% in TFC/Sukuks. The unit holding pattern of the fund is moderately concentrated with top ten investors representing ~49% of the fund's assets, which exposes the fund to a moderate level of redemption pressure.
Going forward, the fund may shift its focus towards banks and government securities, 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.
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 and Venture Capital services. The Company has recently acquired REIT management license as well.
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 (CIS & VPS) stood at ~PKR 23,703mln at end Dec’20 and are spread across thirteen open-end mutual funds and two voluntary pension schemes. Investment platforms are provided to investors for both conventional and Islamic markets.