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Lahore, October 05, 2023 (PPI-OT): JS Microfinance Sector Fund (or the “Fund”) is a medium-risk profile Fund. The investment objective of the Fund is to provide income enhancement by investing in prime quality Microfinance sector products, Microfinance bank deposits, and short-term Money Market instruments.
The assigned rating reflects the Fund’s moderate credit and interest rate risk profile emanating from its investment strategy. At the end of Jun’23, the Fund had allocated ~97.45% of cash in A+ rated banks in the form of deposits and placements. Considerable holding in cash and bank balances strengthens the liquidity profile of the Fund. At the end of Jun’23, the WAM and duration was 2 days; limiting the exposure to credit risk and interest rate risk.
The top 10 investor concentration of the Fund, at the end of Jun’23 was ~83.57%, giving rise to a high level of redemption pressure. Going forward, any material changes in the Fund’s asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating. Risk may vary slightly from time to time considering the volatility of economic conditions.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com
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