PACRA Maintains Stability Rating of JS Islamic Income Fund (formerly: JS Islamic Government Securities Fund)
|Rating Type||Stability Rating|
The investment mandate of the fund is to generate stable return for its unit holders while ensuring capital preservation by primarily investing in Shariah compliant government securities.
At end-Dec17, fund's exposure with TFCs/Sukuks was 16% rated ‘AAA’, while remaining assets 84% were kept with banks rated 'A+'. Weighted average maturity of the fund remain at 246 days. The unit holding pattern of the fund is highly concentrated with top10 investors representing 99% of the fund's assets, (of which ~10% are owned investments) which exposes the fund to a high level of redemption pressure.
Going forward, the fund intends to maintain exposure towards debt instruments and cash balances. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remains critical for the rating. PACRA would monitor performance against agreed parameters on monthly average basis.
Incorporated in 1995 and listed on PSX since April 24, 2007, JS Investments Limited is a private sector asset management company in Pakistan. It is a subsidiary of JS Bank Limited - 65% shareholding at end-Dec17. JS Bank, has a country-wide network of 323 branches (at end-Dec17). It carries a long-term rating of "AA-" and short-term rating of "A1+" by PACRA. JS Investments is managing 13 open-end mutual funds and 2 pension schemes with collective AUMs of PKR 12,316mln at end-Dec-17.
JS Investment’s board of directors comprises eight members - including CEO. The board structure include two group representatives, four representatives of the sponsoring bank and an independent director. The CEO Mr. Hasnain Raza Nensey, has an aggregate work experience of over two decades, mainly in the Financial Industry in Pakistan.