Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has announced that it will maintain its stability rating for the JS Islamic Money Market Fund. The fund, which is designed to meet the liquidity needs of investors through Shariah-compliant money market instruments, has experienced a slight decline in its Assets Under Management (AUM), standing at PKR 8,076 million as of June 2026, down from PKR 8,154 million in December 2025.

According to The Pakistan Credit Rating Agency Limited, the fund's portfolio is primarily invested in banks and development finance institutions, with 79.17% allocated in these areas, and 19.04% maintained in cash. The credit quality of the fund's investments includes allocations of 36.28% to AA-rated avenues, 31.64% to AA+ rated avenues, and 30.29% to government securities and AAA-rated instruments. The fund's weighted average maturity is 25 days, suggesting moderate exposure to interest rate and credit risk, which is mitigated by its allocation to high-quality government and AAA-rated securities.

The fund's unit holding pattern remains concentrated, with the top ten investors accounting for 59.70% of the total units. Despite this concentration, the fund's allocation to bank deposits is expected to provide the liquidity needed to meet potential redemption demands. The fund reported an annualized return of 10.33% as of June 2026, slightly underperforming the benchmark return of 10.46% and the peer average return of 10.55%. Future changes in the fund's investment policy or rating criteria could impact the stability rating.