Karachi: The Pakistan Credit Rating Agency Limited has maintained the stability rating of the JS Microfinance Sector Fund (JSMFSF), an income fund with a medium risk profile that seeks to offer competitive returns to its investors. The fund aims to generate higher returns compared to traditional banking channels by diversifying investments across the low-risk microfinance sector and other authorized avenues.
According to PACRA, as of June 2026, the fund's assets under management reached approximately PKR 35,397 million, marking an increase from PKR 33,714 million in December 2025. The fund's asset allocation strategy included placing 52.26% of its portfolio in bank deposits, 28.16% in Pakistan Investment Bonds, and 16.70% in banks and development finance institutions. The remainder was allocated to other instruments.
The credit quality of the fund's investment portfolio primarily focused on A+ rated avenues, comprising about 44.96% of the portfolio. Government securities and AAA-rated avenues accounted for 28.71%, A- rated instruments constituted 19.48%, and AA-rated avenues made up 4.52%. The fund's weighted average maturity was recorded at approximately 91 days, indicating a moderate exposure to interest rate and credit risk. However, this risk is mitigated by the fund's allocation to government securities and AAA-rated instruments.
The fund's unit holding pattern remained concentrated, with the top ten investors holding around 69.47% of the total units, including approximately 3.02% associated with a related party. Adjusted concentration stood at about 62.85%, suggesting potential redemption pressure, though considered manageable due to the fund's liquidity support through bank placements.
The fund reported an annualized return of approximately 12.79% as of June 2026, surpassing the benchmark return of around 11.39% and the peer average return of approximately 10.84%. This performance reflects results above comparable funds. Any significant changes in the investment policy or rating criteria could impact the fund's future rating.