Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has announced the continuation of its stability rating for the JS Income Fund (JSIF), a medium-risk fixed-income scheme. The Fund is strategically designed to safeguard investor capital while providing a reliable income stream that surpasses the returns of comparable bank deposits.

JSIF maintains a diversified investment portfolio that includes corporate debt of investment-grade quality, government securities, and money-market instruments. As of June 30, 2025, the Fund's Assets Under Management (AUM) stood at PKR 7,568 million.

The asset allocation strategy of JSIF reflects a balance between yield and liquidity. The largest portion, 52%, is invested in Pakistan Investment Bonds (PIBs), which capture long-term sovereign yields. Another 29% is allocated to bank placements, enhancing both liquidity and credit strength. Treasury Bills (T-Bills) make up 12% of the portfolio, offering short-tenor sovereign security buffers. The remaining 7% is distributed among other instruments, including spread transactions aimed at improving incremental returns.

The Fund's credit profile is robust, with 71% of its assets invested in AAA-rated avenues and 3% in AA-rated instruments. The balance is deployed across A+ and A-rated assets. The investment strategy is characterized by a Weighted Average Maturity (WAM) of 653 days, indicating significant exposure to longer-tenor PIBs, which introduces interest rate sensitivity. This sensitivity is partially offset by a shorter duration of 66 days, resulting from liquid placements and T-Bills.

Investor concentration remains a notable factor, with the top ten unit holders accounting for 90% of the Fund's AUM, which introduces a level of redemption sensitivity. Nonetheless, the Fund maintains liquidity support through substantial bank placements, comprising 29% of the portfolio, providing a buffer for managing potential outflows.

PACRA notes that any substantial changes in JSIF's investment policy or the criteria used for its rating could impact the current rating. The agency's rating reflects the Fund's current stability and strategic management of its diversified investment portfolio.