Lahore, April 06, 2023 (PPI-OT): JS Government Securities Fund (“Fund” or the “JSGSF”) is an open-end Income Fund that aims to generate a competitive return with low risk, by investing primarily in Government Securities. At the end Dec’22, the Fund has invested of ~78.8% in PIBs, ~18.7% in Banks whereas the remaining was invested in Others. Considering the high investment in longer-term PIBs, the WAM of the Fund stood at 1048 days at end Dec’22, exposing the fund to high credit risk and mark-to-market losses.

The Duration of the Fund stood at 70 days at end Dec’22, limiting the exposure to interest rate risk. The unit holding pattern of the Fund was ~100% representing the top five investors’ concentration; exposing the Fund to a high level of redemption pressure.

Going forward, the Fund aims to provide diverse portfolio of government securities and money market instruments. Material changes in the Fund’s asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.

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