Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained its stability rating for the JS Government Securities Fund, emphasizing its low-risk profile and commitment to capital preservation. The fund, which is designed to provide a steady annual income stream surpassing that of similar liquidity profile deposits offered by commercial banks, manages a diverse portfolio primarily comprised of investment-grade debt securities, government securities, and money market instruments.
As of June 30, 2025, the JS Government Securities Fund reported Assets Under Management (AUM) totaling PKR 10,046 million. The fund's asset allocation is heavily weighted towards sovereign and near-sovereign securities, with 45% invested in Pakistan Investment Bonds (PIBs) to leverage long-term government yield, and 31% in Treasury Bills (T-Bills) for short-term liquidity. The remaining assets include 24% in bank placements and 1% in other investments.
The fund's credit quality is a significant strength, with 99% of its assets held in direct government securities or 'AAA' rated instruments, effectively minimizing default risk. Less than 1% of the assets are allocated to 'AA+' rated avenues, maintaining the fund's high investment-grade profile in line with its low-risk objective.
The Weighted Average Maturity of the fund stands at 646 days, indicating a considerable focus on longer-tenor securities, which offer higher yields but also come with increased credit rate risk. This risk, however, remains manageable due to the fund's substantial investment in government and 'AAA' rated securities. Additionally, the fund's duration of 117 days suggests moderate sensitivity to near-term rate changes.
Despite a highly concentrated investor base, with the top ten investors holding 94% of the fund's units, the risk is somewhat mitigated by 31% liquidity in T-Bills and the sovereign nature of the fund. PACRA has also indicated that any significant changes in the fund's investment policy or the rating criteria could impact its assigned rating.