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PACRA Maintains Stability Rating of JS Cash Fund

December 6, 2018

Lahore, December 06, 2018 (PPI-OT): JS Cash Fund (JS CF) is an open-end ‘Money Market Scheme’ that mainly invests in low risk short-term fixed income instruments including money market instruments to provide a regular and reasonable return to investors while ensuring high liquidity. The Fund shall invest primarily in short duration instruments and may even hold some or all of its assets in cash for the purpose maintaining liquidity.

The rating reflects the fund’s low risk profile emanating from sizeable allocation of assets towards highly liquid, low credit risk avenues. At end-Jun-18, the portfolio comprised cash balances (~99%) with majority of exposure with AAA banks. Average duration of the fund at end Jun-18 stood at 1 day; maximum duration at a quarter end during FY18 was 37 days. The unit holding pattern of the fund is highly concentrated with the top ten investors representing around 83% of portfolio.

Going forward, the fund intends to maintain investing strategy towards high liquidity and low credit risk mainly in form of AA and above rated banks and government securities with duration not exceeding 45 days. Material changes in the fund’s asset allocation strategy could negatively impact the fund’s credit quality and exposure to interest rate risk remains critical for the rating.

For more information, contact:
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

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