Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has announced the maintenance of the stability rating of the JS Income Fund (JSIF), a medium risk income fund focused on preserving investor capital while providing higher annual returns than commercial bank deposits. Despite a contraction in the fund's size, its current assets under management are evaluated at approximately PKR 4,129 million.

According to The Pakistan Credit Rating Agency Limited, the JS Income Fund maintains a diversified investment portfolio, primarily concentrated in government securities and AAA-rated avenues, which account for 68.30% of its investments. The fund's exposure to A+ and AA-rated instruments stands at 18.42% and 11.23%, respectively. The weighted average maturity of the fund is approximately 274 days, suggesting moderate credit risk, which is mitigated by its government securities allocation. The fund's duration of approximately 256 days indicates exposure to interest rate volatility.

The fund has demonstrated strong performance, reporting an annualized return of approximately 13.51%, exceeding both its benchmark and peer average returns. However, the unit holding pattern is highly concentrated, with the top ten investors accounting for 94.40% of the total units, which could lead to high redemption pressure. This pressure is considered manageable due to the fund's allocation to bank placements, which offer liquidity to meet potential redemption needs. Any significant changes in the investment policy or rating criteria could impact the fund's rating in the future.