The Pakistan Credit Rating Agency Limited
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Madiha Sohail

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PACRA Maintains Stability Rating of JS Islamic Income Fund

Rating Type Stability Rating
(01-Oct-21 )
(01-Apr-21 )
Action Maintain Maintain
Long Term AA-(f) AA-(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

JS Islamic Income Fund (or the "Fund") is a medium risk profile fund moderate strength. The investment policy holds that the Fund will invest in Shariah Compliant Authorized Investments only. The investment policy further states that the Fund must invest at least 25% of its assets in cash and near cash instruments. The Fund remained compliant with its investment policy. At end Jun'21, the total placement with banks consisted of 23.35% of the Fund's assets in banks rated AA+ and above. Placement in Sukuks constituted 20.8% of the total assets. Considerable holding in cash and bank balances enforce the liquidity profile of the Fund. The duration of the Fund remained at an average of 22 days and as such does well to mitigate exposure to interest rate risk (At end Jun'21). The top 10 investors possess a concentration of 86.56% in the Fund's total assets. Therefore, it holds true that the Fund holds a high unit holding pattern.
Going forward, 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 is one of 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 strong presence in the financial sector with entities operating in 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 and Venture Capital services. The Company has recently acquired REIT management license as well.
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 two independent directors while all the other directors are non-executive directors. The board members possess strong profile and skills suited to the financial services industry. Assets under management of the Company (CIS & VPS) stood at ~PKR 17,616mln at end Jun'21 and are spread across thirteen open-end mutual funds and two voluntary pension schemes. Investment platforms are provided to investors for both conventional and Islamic markets

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