JS Investments launches microfinance fund

KARACHI: JS Investments, country’s oldest private sector asset management company, has introduced a microfinance sector-specific income fund called JS Microfinance Sector Fund (JSMFSF), The News learnt on Thursday.

The initial public offering of the fund was on May 11, 2022, and is available to invest through opening an account with JS Investments (online or physical) or via its distribution channels. With the addition, the company vows to stay true to its vision of providing investors of Pakistan access to all asset classes.

JS Microfinance Sector Fund is designed to provide investors an opportunity to tap into growth potential of the country’s microfinance sector. The loans in this rising sector have relatively higher yields compared to the traditional banking sector providing the informal sector with access to capital.

In that, the relationship between the lender and borrower also remains mutually beneficial.

The microfinance sector has witnessed great success in Pakistan with 42 percent per annum growth since 2012 as opposed to the traditional banking sector’s 13 percent growth. The sector is also leading the spectrum of available fixed income instruments in terms of yield.

JSMFSF is an open-end income fund and its investment objective is to contribute to building a sustainable, robust, and inclusive financial sector in the country.

The fund's goal is to achieve a reasonable rate of return while maintaining high liquidity by investing primarily in the low-risk microfinance sector, the details of which are available at their official website.

The fund offers many benefits to investors, including attractive returns, professional management, diversification, tax-saving, and no lock-in 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 way of offering diversification across the spectrum of microfinance products.”

“This provides a great opportunity for competitive returns managed under a structured risk management framework,” Mankani added.

She stated that JSIL continued to show its commitment to introducing products that were aimed at financial market development.

“JSMSF will go a long way in supporting microfinance, which is categorised as an important instrument toward alleviating poverty and inequality as well as spurring economic growth of developing countries.”

JSMFSF is an approved investment product by Securities and Exchange Commission of Pakistan (SECP) and investors can commence their investment experience by opening their online account through JS Investments’ official website.