PACRA Maintains Stability Rating of JS Islamic Income Fund : AsiaNet-Pakistan

PACRA Maintains Stability Rating of JS Islamic Income Fund

May 2, 2019 | General Business News | Share:

Lahore, May 02, 2019 (PPI-OT): The objective of JS Islamic Income Fund (JSIIF) is to generate stable returns and ensure capital preservation over medium to long term, by investing primarily in quality Sukuks, Shariah-compliant Government Securities, Shariah-compliant Bank Deposits and other Shariah-compliant debt instruments.

At end Dec-18, fund’s exposure with Sukuks was 68% having credit ratings of AAA (~10%), AA (~32%) and A (~26%) . ~30% of the assets of the portfolio were invested as cash balances in banks rated A and above. Weighted average maturity of the fund was ~2.8 years. The unit holding pattern of the fund is highly concentrated with top ten investors representing 91% of the fund’s assets, (out of which ~8% 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.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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Category: General Business News