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
Action Maintain Maintain
Long Term A+(f) A+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

JS Income Fund (or the "Fund") is a medium risk profile fund. The investment policy holds that the Fund will invest predominately in fixed-rate corporate debt instruments and Government Securities. At the end of Jun'21, the total cash balances consisted of 34.69% of the Fund's total assets in banks mostly rated A+ and above. Moreover, the equity portfolio of the Fund consisted of 26.38% of the Fund's assets in companies mostly rated 'A' and above. Placement in Sukuks constituted 21.71% of the total assets. Considerable holding in cash and bank balances strengthens the liquidity profile of the Fund. The duration is at an average of 25 days which minimizes exposure to the interest rate risk (At end Jun'21). The top 10 investors possess concentration of 51.17% in the Fund's total assets. Therefore, it could be ascertained that the unit holding pattern is moderate.
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.

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 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 17,616mln at end Jun’21 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.

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.