PACRA Maintains Stability Rating of JS Microfinance Sector Fund

JS Microfinance Sector Fund ("JSMFSF" or "the Fund") is positioned as a medium-risk, designed to provide investors competitive & attractive returns, with a medium risk profile while providing comparatively higher returns than the traditional banking channels. The fund diversifies its investments across the spectrum of low-risk Microfinance sector and Authorized Investments with hope to outperform returns of most fixed income products. As of June 2025, the Fund reported Assets Under Management (AUM) of PKR 10,676 million, reaffirming its strong presence within the specialized microfinance investment universe. The Fund’s asset allocation is anchored by 68% exposure to bank placements serving as the primary liquidity buffer, complemented by 28% in Development Finance Institutions (DFIs) for yield enhancement. Additionally, 2.3% is invested in TFCs/Sukuks, with 2% allocated to other approved instruments to maintain diversification. From a credit quality standpoint, 95% of assets allocated to A+ rated exposures, 2.3% in AAA, and 1% in AA rated instruments, reflecting a conservative approach tailored to the microfinance sector’s risk dynamics. The Fund maintains a low-risk maturity structure, supported by a Weighted Average Maturity (WAM) of 62 days, limiting credit risk, and a short duration of 29 days, ensuring minimal sensitivity to interest rate movements. Investor concentration remains elevated, with the top ten unit holders representing 85% of AUM, introducing potential redemption pressure. However, this risk is effectively mitigated through the Fund’s substantial liquidity cushion maintained via bank placement exposure.
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 holds the distinction of being Pakistan’s oldest private-sector Asset Management Company, established in 1995 and listed on the Pakistan Stock Exchange. As a key entity within the Jahangir Siddiqui (JS) Group, the Company benefits from a strong financial ecosystem, with JS Bank Limited maintaining a majority stake of approximately 85%. The JS Group has an extensive footprint across Pakistan’s financial sector, with operations spanning banking, insurance, brokerage, and asset management, while also expanding into energy infrastructure and the oil marketing sector. JS Investments Limited is a fully licensed financial institution, authorized to provide Asset Management Services, 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, further solidifying its position as a diversified financial services leader. Under the leadership of Ms. Iffat Zehra Mankani (CEO), JS Investments leverages her extensive global expertise spanning over two decades in public and private markets across multiple asset classes. The Company’s governance structure is anchored by an eight-member Board of Directors, comprising a blend of independent and non-executive directors, with strong representation from JS Bank Limited and Jahangir Siddiqui & Company Limited. The Board is composed of highly accomplished professionals with deep expertise in financial services, ensuring strategic oversight and governance excellence. As of June 2025, JS Investments Limited reported Assets Under Management (AUM) of approximately PKR 124 billion, reflecting its sustained growth and leadership in Pakistan’s asset management industry.