PACRA Assigns Stability Rating to JS Fixed Term Munafa Fund

JS Fixed Term Munafa Fund (“the Fund”) is structured as a low-to-moderate risk, fixed-return investment vehicle designed to deliver predetermined returns to unit holders, subject to investors remaining invested until the maturity of the respective plan(s). The Fund operates under a fixed-rate return framework. The Fund originally comprised 18 investment plans; however, as per the assessment conducted in August 2025, 11 plans had matured, leaving seven active plans, namely: JSFTMF-P1, JSFTMF-P11, JSFTMF-P13, JSFTMF-P14, JSFTMF-P15, JSFTMF-P16, and JSFTMF-P18. As of August 2025, the combined Assets Under Management (AUM) of the active plans stood at PKR 27,229 million, underscoring the Fund’s established presence within Pakistan’s fixed-term investment segment. The Fund’s asset allocation remains predominantly sovereign in nature, with 85% of net assets invested in Pakistan Investment Bonds (PIBs), 12% allocated to Government of Pakistan Treasury Bills (T-Bills), 1% maintained in bank deposits, and a marginal balance held in other instruments. From a credit quality perspective, 98% of assets invested in Government Securities/AAA rated instruments, complemented by limited exposure to ‘AA’ rated avenues. This composition materially mitigates default risk. The Fund’s maturity profile reflects its fixed-term structure, with a Weighted Average Maturity (WAM) of 933 days, indicating elevated exposure to interest rate risk. However, this risk remains manageable due to the Fund’s overwhelming allocation to sovereign instruments. Investor concentration remains high, with the top ten unit holders accounting for 69% of AUM, which introduces elevated redemption pressure; nevertheless, the Fund’s sovereign-backed asset base provides structural support in managing redemption obligations in line with its design.
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. As part of the Jahangir Siddiqui (JS) Group, the Company benefits from a strong financial ecosystem, with JS Bank Limited holding a majority stake of approximately 85%. The JS Group has a broad presence across Pakistan’s financial sector, including banking, insurance, brokerage, and asset management, with expanding interests in energy infrastructure and oil marketing. JS Investments Limited is fully licensed to provide asset management, investment advisory, private equity, venture capital, and REIT management services, and also operates as a Pension Fund Manager under the Voluntary Pension System Rules, 2005. Led by Ms. Iffat Zehra Mankani (CEO), who brings over two decades of global experience across multiple asset classes, the Company is supported by a strong governance framework overseen by an eight-member Board of Directors comprising independent and non-executive members. As of August 2025, JS Investments Limited reported Assets Under Management (AUM) of approximately PKR 94,959 Million.