This website uses cookies to improve services, analyse traffic to our site, deliver content and provide tailored ads. By using this site, you agree to this use. See our Cookie Policy.
  of  

or
Sign in to continue reading...

PACRA Maintains Stability Rating of JS Islamic Income Fund (formerly: JS Islamic Government Securities Fund)

IM Press Release
By IM Press Release
1 week ago
PACRA Maintains Stability Rating of JS Islamic Income Fund (formerly: JS Islamic Government Securities Fund)

Create FREE account or Login to add your comment
0 Comments


Transcription

  1. PRESS RELEASE The Pakistan Credit Rating Agency Limited Date 06-Dec-2018 PACRA Maintains Stability Rating of JS Islamic Income Fund (formerly: JS Islamic Government Securities Fund) Stability Rating Rating Type Analysts Shahzaib Khalid shahzaib.khalid@pacra.com +92-42-35869504 www.pacra.com Applicable Criteria Methodology | Stability Rating (Jun 18) Related Research Sector Study | Mutual Funds | Stability (Nov 18) Action Long Term Short Term Outlook Rating Watch Current (06-Dec-2018) Maintain AA-(f) Stable - Previous (30-Jun-2018) Maintain AA-(f) Stable - The objective of JS Islamic Income Fund is to generate stable returns and ensure capital preservation over medium to long term, by investing primarily in quality Sukuks, Shariahcompliant Government Securities, Shariah-compliant Bank Deposits and other Shariahcompliant debt instruments. At end June-18, fund's exposure was ~61% with Sukuks having credit ratings of AAA (~14%), AA (~22%) and A (~25%). ~38% of the assets were placed as cash in banks (A+ rated and above). Weighted average maturity of the fund remains at 2.7 years. The unit holding pattern of the fund is highly concentrated with top ten investors representing 97% of the fund's assets, (of which ~67% are owned investments) which exposes the fund to a low 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 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. 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 eleven open-end funds and two voluntary pension funds. The AUMs are ~PKR 18bln at end-Oct'18. The board of JS Investments Limited comprises eight members including the Chief Executive Officer. The board has one independent director, four sponsor representatives and two group representatives. The Chairman Mr. Basir Shamsie is a part of the JS Group since 1994 and is the Chairman of JS Investments Limited since 2016. The CEO, Mr. Hasnain Raza Nensey has profound experience in the financial industry. Disclaimer This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA 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.