KARACHI: JS Investments, the oldest private sector asset management company in the country, has introduced a microfinance sector-specific income fund called JS Microfinance Sector Fund (JSMFSF), The News learned on Thursday.
The fund’s initial public offering took place on May 11, 2022 and is available to invest by opening an account with JS Investments (online or physical) or through its distribution channels. With this addition, the company pledges to stay true to its vision of providing investors in Pakistan with access to all asset classes.
JS Microfinance Sector Fund is designed to provide investors with an opportunity to harness the growth potential of the country’s microfinance sector. Loans in this booming sector have relatively higher returns compared to the traditional banking sector providing the informal sector with access to capital.
In this, the relationship between the lender and the borrower also remains mutually beneficial.
The microfinance sector has been very successful in Pakistan with growth of 42% per year since 2012, compared to 13% for the traditional banking sector. The sector also tops the spectrum of available fixed income instruments in terms of yield.
JSMFSF is an open-ended income fund and its investment objective is to contribute to building a sustainable, robust and inclusive financial sector in the country.
The objective of the fund is to achieve a reasonable rate of return while maintaining high liquidity by investing primarily in the low-risk microfinance sector, details of which can be found on their official website.
The fund offers many advantages to investors, including attractive yields, professional management, diversification, tax savings and no lock-up period.
Commenting on the launch, Iffat Zehra Mankani, CEO of JS Investment Limited, said: “We intend to add value to investors in the fixed income space by providing diversification across the spectrum of microfinance.
“This provides an excellent opportunity for competitive returns managed within a structured risk management framework,” Mankani added.
She said JSIL continues to show its commitment to introducing products for financial market development.
“JSMSF will go a long way in supporting microfinance, which is ranked as an important instrument for reducing poverty and inequality, as well as boosting economic growth in developing countries.”
JSMFSF is an investment product approved by the Securities and Exchange Commission of Pakistan (SECP) and investors can start their investment experience by opening their account online at the official website of JS Investments.