PACRA Maintains Stability Rating of JS Microfinance Fund

JS Microfinance Sector Fund ("JSMFSF" or "the Fund") is a medium-risk fixed income Fund designed to provide investors with enhanced yields while prioritizing capital preservation and liquidity. The Fund's specialized focus on microfinance sector instruments combines defensive portfolio construction with targeted exposure to financial inclusion assets, offering a unique value proposition in Pakistan's fixed income market. As of December 2024, the Fund reported Assets Under Management (AUM) of PKR 11.4 billion, reflecting its position as one of Pakistan's largest sector-specific fixed income funds. In terms of asset class, 79% was invested in bank deposits, 18% in Development Finance Institutions (DFIs), and 3% in other approved instruments, demonstrating a strong emphasis on liquidity management. From a credit quality perspective, 87% of net assets were allocated to A+ rated instruments and 13% to A rated exposures, maintaining an investment-grade portfolio while adhering to its sector-focused mandate. This allocation underscores the Fund's commitment to balancing yield potential with credit risk mitigation. The Fund's risk parameters reflect its ultra-short-term orientation, with a Weighted Average Maturity (WAM) of 26 days and duration of 18 days as of December 2024. This positioning indicates minimal sensitivity to credit risk and interest risk movements, and making it particularly suitable for investors seeking liquidity with modest yield enhancement.
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 is 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 a strong presence in the financial sector with entities operating in the 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, Venture Capital services, and REIT management. In addition, the Company also acts as Pension Fund Manager under the Voluntary Pension System Rules, 2005. Ms. Iffat Zehra Mankani is the Chief Executive Officer of JS Investments Limited. She comes with a globally diversified experience of over two decades in both public and private markets across multiple asset classes. 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 three independent directors while all the other directors are non-executive directors. The board members possess strong profiles and skills suited to the financial services industry. Assets under management of the Company stood at ~PKR 128.17bln at the end of Dec'24.