PACRA Maintains Stability Rating of JS Islamic Daily Dividend Fund
|Rating Type||Stability Rating|
JS Islamic Daily Dividend Fund (or the "Fund") is a low risk profile fund. The investment policy holds that the minimum requirements of the Fund entails that majority of the Fund must be invested in Shariah Compliant Authorized Investments. At the end of Jun'21, the total cash balances within banks consisted of 96.15% which were ratted 'AA' and above. This considerable holding in cash and bank balances strengthens the liquidity profile of the Fund. The average duration remained at 6 days and as such minimizes exposure to interest rate risk (At end Jun'21). The top 10 investors possess a concentration of 99.98% in the Fund's total assets. This exposes the Fund to a high redemption pressure, but as a result of the it beings highly liquid in nature, the high redemption pressure should not be a concern for the fund in the future.
Going forward, 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 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