Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed the stability rating of the JS Islamic Income Fund, underscoring its position as a low-risk Shariah-compliant fixed income solution. The fund is designed to provide investors with stable returns while strictly adhering to Islamic investment principles.

The JS Islamic Income Fund, often referred to as JSIIF, focuses on a conservative strategy, investing in high-quality Islamic instruments. It aims to attract investors seeking Shariah-compliant income opportunities with an emphasis on capital preservation. As of December 2024, the fund reported Assets Under Management (AUM) of PKR 1.7 billion, highlighting its growing influence in Pakistan's Islamic finance sector.

The fund boasts a diversified Islamic asset allocation, with 47% invested in Development Finance Institutions (DFIs), 31% in Shariah-compliant bank deposits, 12% in Government of Pakistan Ijara Sukuks, and 10% in other approved Shariah-compliant instruments. This mix demonstrates a disciplined approach to credit risk management within a Shariah-compliant framework.

In terms of credit quality, the fund has allocated 32% of net assets in Government Securities and AAA rated instruments, 26% in AA+ rated, 36% in A+ rated, and 6% in other high-quality Islamic investments. This strategy underlines the fund's commitment to maintaining a robust credit profile.

The Weighted Average Maturity (WAM) of the fund stands at 281 days, with a duration of 44 days as of December 2024. This structure provides limited exposure to credit and interest rate risk, allowing for optimized yields while offering strong protection against rate volatility. The fund's short duration is particularly valuable in the current monetary environment.

Any future changes in the investment policy or the rating criteria could impact the fund's assigned rating, PACRA noted.