Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has confirmed the stability rating of the JS Islamic Money Market Fund, a low-risk Shariah-compliant investment option. The Fund, aimed at capital preservation and offering competitive returns, remains committed to Islamic principles, making it appealing to institutional investors seeking Shariah-compliant liquidity options.

As of December 2024, the Fund reported assets under management amounting to PKR 3.8 billion, underscoring its significant presence in Pakistan’s Islamic money market sector. The asset allocation strategy of the Fund includes 77% investment in Development Finance Institutions, 17% in Islamic bank deposits, 5% in Government of Pakistan Ijara Sukuks, and 1% in other Shariah-compliant instruments.

In terms of credit quality, 41% of the Fund’s net assets are invested in Government Securities and AAA rated instruments, another 41% in AA+ rated instruments, 16% in AA rated instruments, and 2% in other investment-grade Islamic securities. This allocation strategy provides robust protection against credit risk while ensuring Shariah compliance.

The Fund has maintained both its Weighted Average Maturity and duration at 44 days as of December 2024, minimizing its exposure to credit rate and interest rate risks. Any significant changes in the Fund’s investment policy or the criteria for the assigned rating could affect this stability rating in the future.