Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has affirmed the stability rating of the JS Islamic Income Fund (JSIIF), recognizing its low-risk, Shariah-compliant investment strategy. The fund, designed to offer stable returns while preserving capital, has been commended for its asset allocation and credit quality.

As of June 30, 2025, JSIIF reported Assets Under Management (AUM) of PKR 1,632 million. The fund's asset mix is strategically structured, with 50% of its investments in Development Finance Institutions (DFIs), which serve as its primary income source. Additionally, 32% of the fund is allocated to Shariah-compliant bank placements, providing liquidity stability, while 12% is invested in Government of Pakistan Ijara Sukuks, acting as a sovereign credit anchor.

The fund's credit quality is robust, with 70% of its assets in high investment-grade categories. Specifically, 34% of the assets are in AAA-rated instruments, 30% in AA+, and 6% in AA-rated avenues. This allocation offers a significant buffer against potential credit deterioration.

JSIIF's risk is conservatively managed, with a Weighted Average Maturity (WAM) of 237 days and a short duration of 29 days, minimizing its exposure to interest rate and credit risks. Despite a high investor concentration, with the top ten unit holders representing 83% of AUM, the fund is well-positioned to handle potential redemption scenarios due to its short duration and substantial allocation to liquid bank placements.

PACRA notes that any significant changes in the fund's investment policy or rating criteria could impact the current rating.