Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has announced the maintenance of the stability rating for JS Islamic Income Fund (JSIIF), a medium-risk Shariah-compliant income fund. The fund aims to deliver stable returns and preserve capital over the medium to long term through investments primarily in quality Sukuks, Shariah-compliant government securities, and other Shariah-compliant avenues. Despite a notable decline in assets under management, the fund's performance has remained above benchmark and peer averages.

According to The Pakistan Credit Rating Agency Limited, the assets under management for JSIIF dropped to approximately PKR 1,011 million as of June 2026, compared to roughly PKR 2,054 million in December 2025. The fund's asset allocation reveals a significant portion placed in bank deposits and GOP Ijara Sukuks. While the fund shows high exposure to credit risk with a weighted average maturity of 777 days, the risk is considered manageable due to substantial investments in government securities and AAA-rated avenues.

The unit holding pattern of the fund is concentrated, with the top ten investors holding about 82.72% of the total units, including a related party's 12.50% stake. The fund faces high redemption pressure, calculated at approximately 70.22%, but the pressure is deemed manageable due to the fund's liquidity provisions through bank placements. JSIIF has reported an annualized return of approximately 11.98% as of June 2026, surpassing its benchmark return and peer average returns.

PACRA's announcement also mentioned that any significant changes in investment policy or rating criteria might impact the assigned rating in the future.