PACRA Assigns Initial Stability Rating to JS Fixed Term Munafa Fund

JS Fixed Term Munafa Fund (or the 'Fund') is a very low-risk profile Fund. The investment objective of the Fund is to provide fixed return to its unit holders subject to the holding of the investment till maturity. The Fund comprises of five plans at end-Jun'24 and categorized in Fixed Rate Return. JS Fixed Term Munafa Fund's plans offer a more structured approach with a defined investment horizon and predictable returns. In contrast, normal funds provide greater flexibility, making them more suitable for investors who prefer continuous access to their investments and broader exposure to market fluctuations. At end Jun'24, the Fund had allocated ~78.5% of net assets in T-Bills, ~15.9% in PIBs, ~4.8% in Bank placements, whereas the remaining ~0.8% was invested in others. At end Jun'24, most of the investments was held in Govt. Sec/AAA rated avenues (94.0%), while the remaining ~5.0% was invested in AA+ rated avenues. At end Jun'24, the Duration of the Fund stood at 202 days, exposing the Fund to high interest rate risk. WAM of the Fund stood at 503 days; exposing the Fund to very high credit rate risk. However, since the majority of the Fund's allocation pertains to long-term Government Securities, credit risk is negligible. At end Jun'24, the Fund's unit holding pattern is highly concentrated, with the top ten investors accounting for 100% of its net assets, exposing the Fund to very high level of redemption pressure. Redemption pressure is addressed through sufficient level of liquidity.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on rating.

About the Entity
JS Investments Limited, established in 1995, is the oldest private-sector asset management company in Pakistan and is listed on the Pakistan Stock Exchange. As a member of the Jahangir Siddiqui (JS) Group, the company benefits from strong support, with JS Bank Limited holding approximately 85% of its shares. The JS Group has a prominent presence in the financial sector, encompassing banking, insurance, brokerage, and asset management, and has recently expanded into energy infrastructure and oil marketing segments. JS Investments is licensed to provide a range of services, including asset management, investment advisory, private equity, venture capital, and REIT management. Additionally, the company serves as a Pension Fund Manager under the Voluntary Pension System Rules,2005.
Ms. Iffat Zehra Mankani is the Chief Executive Officer of the Company. She possesses 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 CEO. The board is dominated by representatives of JS Bank Limited and Jahangir Siddiqui & Company Limited. The board has three independent directors while all the other directors are non-executive. The board members possess strong profiles and skills suited to the financial services industry. Assets under management of the Company stood at ~PKR 98.6bln at the end of Jun'24.