Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed the stability rating of the JS Cash Fund as ‘AA+(f)’ with a stable outlook, highlighting its continued reliability and sound investment approach. This confirmation, dated October 22, 2024, reflects the fund’s consistent performance and strategic management, ensuring investor confidence despite potential market fluctuations.
According to The Pakistan Credit Rating Agency Limited, the JS Cash Fund maintains a low-risk profile, strategically investing in short-term, fixed-income instruments, including money market instruments. This investment policy is designed to yield regular and reasonable returns while prioritizing high liquidity for its investors. The fund’s investment strategy, focusing on short-duration instruments and maintaining significant cash holdings, effectively supports its liquidity needs.
As of the end of June 2024, the fund’s portfolio included approximately 42.9% in Treasury Bills, 28.34% in cash, and 19.45% in Pakistan Investment Bonds, with smaller allocations in placements with banks and DFIs, short-term Sukkuks, and other avenues. Notably, the credit quality of the fund’s investments remains high, with around 86.24% in government securities or AAA-rated avenues, and the rest spread across AA to AA- rated avenues.
The Weighted Average Maturity (WAM) and duration of the fund stood at 82 days as of the end of June 2024, which minimizes exposure to credit risk and interest rate fluctuations. However, the fund’s unit holding pattern indicates a high concentration, with the top ten investors representing approximately 85.27% of the fund’s assets, posing a significant level of redemption pressure. This risk is systematically mitigated by maintaining sufficient liquidity to address potential withdrawals.
PACRA has indicated that any future changes to the fund’s investment policy or adjustments in the rating criteria could impact the stability rating. This ongoing vigilance ensures that the fund continues to meet its objectives and maintain its position as a secure option for investors seeking reliable returns with minimal risk.