The Pakistan Credit Rating Agency Limited
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Ayesha Qasim

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PACRA Maintains Stability Rating of JS Islamic Income Fund

Rating Type Stability Rating
(20-Apr-20 )
(30-Oct-19 )
Action Maintain Maintain
Long Term AA-(f) AA-(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The rating reflects the moderate strength of the fund's credit and interest rate risk profile. At end Dec-19, 50% of fund's assets were placed with banks rated 'AA' and above, remaining 50% funds were allocated towards Sukuks. The unit holding pattern of the fund is moderatley concentrated with top ten investors representing ~56% of the fund's assets.
Going forward, the fund intends to increase its allocation in cash by reducing exposure in Sukuks. Material changes in the fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.

About the Entity
JS Investments Limited was incorporated in 1995 and listed on the Pakistan Stock Exchange since April 24, 2007. It is one of the oldest private sector asset management company in Pakistan and rated AM2 by JCR. JS Bank Limited owns ~65% of JS Investments Limited. JS Bank Limited carries a long-term rating of 'AA-' and short-term rating of 'A1+' by PACRA. JS investments has a diversified fund slate consisting of fourteen open-end funds and two voluntary pension schemes. The assets under management stood at ~PKR 20.32 bln at end Dec-19.

The board of JS Investment Limited comprises eight members including the Chief Executive Officer. The Chairman Mr. Kamran Jafar is the Deputy CEO of JS Bank Limited, a seasoned banker with twenty one years of proven track record in banking. Mr. Hasnain Raza Nensey is the Chief Executive Officer of JS Investments Ltd since March 2017. He has an aggregate work experience of 23 years of which around 15 years has been in the Financial Industry in Pakistan. Mr. Nensey was associated with the JS Group in various roles including Chief Investment Officer at JS Abamco Limited.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.