Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has assigned an initial stability rating to the JS Fixed Term Munafa Fund II, a low-risk fixed-return investment vehicle. The Fund, which consists of four active plans, aims to deliver predetermined returns to investors who remain invested until the maturity of their respective plans.

As of October 2025, the Fund had combined Assets Under Management (AUM) of PKR 9,927 million, underscoring its significance in Pakistan's fixed-term investment market. The Fund's assets are predominantly sovereign, with 47% invested in Pakistan Investment Bonds, 25% in Government of Pakistan Treasury Bills, and 27% in bank deposits.

The Fund's credit profile is strengthened by its 72% investment in 'Government Securities/AAA' rated avenues and 27% in 'AA' rated instruments. The weighted average maturity (WAM) of the Fund stands at 721 days, attributed largely to its allocation in floating-rate Pakistan Investment Bonds.

Despite its elevated WAM, the Fund's duration of 101 days indicates low sensitivity to interest rate fluctuations. The default risk is considered manageable due to the Fund's substantial investment in high-quality government securities.

Investor concentration remains a notable factor, with the top investors holding all of the Fund's units as of October 2025. This concentration increases the Fund's sensitivity to redemption activities. However, the risk is mitigated by the Fund's investment in sovereign instruments and liquid bank placements, alongside regulatory liquidity management mechanisms.

Any significant changes in the investment policy or rating criteria could impact the Fund's assigned rating in the future.