PACRA Maintains Stability Rating of JS Microfinance Sector Fund

JS Microfinance Sector Fund ('JSMFSF' or the 'Fund') is a medium risk profile income Fund. The aim of the Fund is to provide investors with 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 Dec’25, the Fund’s Assets Under Management (AUM) stood at ~PKR 33,714mln, compared to ~PKR 10,676mln as of Jun’25, reflecting a substantial increase in the Fund size over the period. In terms of asset allocation, ~67.5% of the portfolio was placed as bank deposits, ~17.7% was invested in Banks/DFIs, ~11.2% in Pakistan Investment Bonds (PIBs), and ~1.4% in Treasury Bills, while the remaining portion was allocated to other instruments. From a credit quality standpoint, the Fund’s investment allocation was primarily concentrated in A+ rated avenues, representing ~68.1% of the portfolio. Exposure to A- rated instruments stood at ~14.3%, while 11.9% was allocated to Government Securities/AAA rated avenues, with the remaining exposure held in other instruments. The Weighted Average Maturity (WAM) of the Fund stood at 219 days as of Dec’25, indicating exposure to moderate levels of interest rate and credit risk. However, the associated credit risk is mitigated through the Fund’s allocation to Government Securities/AAA rated instruments. The unit holding pattern remained concentrated, with the top ten investors accounting for approximately ~73.9% of the total units, of which ~7.5% was associated with a related party. On an adjusted basis, the concentration stood at ~66.4%, indicating elevated redemption pressure. Nevertheless, potential redemption requirements are considered manageable, given the Fund’s allocation to bank placements, which provide liquidity support. In terms of performance, the Fund reported an annualized return of approximately ~11.06% as of Dec’25, exceeding both the benchmark return of approximately ~10.34% and the peer average return of approximately ~11.04%, reflecting outperformance relative to comparable funds.
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 Pakistan’s oldest private-sector asset management company and is listed on the Pakistan Stock Exchange. It operates as part of the Jahangir Siddiqui (JS) Group, with JS Bank Limited holding a majority stake of around ~85%. The Company offers a wide range of services, including asset management, investment advisory, private equity, venture capital, REIT management, and pension fund management under the Voluntary Pension System Rules, 2005. Led by CEO Ms. Iffat Zehra Mankani, the firm benefits from strong leadership and an experienced eight-member Board comprising independent and non-executive directors. As of December 2025, JS Investments manages approximately ~PKR 125 billion in assets, reflecting its strong position in Pakistan’s asset management industry.