Karachi: The Pakistan Credit Rating Agency (PACRA) has reaffirmed the stability rating of JS Income Fund ("JSIF" or "the Fund"), a medium-risk fixed income fund known for its consistent returns and capital preservation strategy. The fund, with assets under management (AUM) totaling PKR 8.7 billion as of December 2024, continues to hold a significant position in Pakistan's fixed income market.

The fund employs a diversified investment approach, allocating assets across various classes to optimize yield and manage risk. The fund's portfolio comprises 36% in Pakistan Investment Bonds, 34% in bank deposits, 21% in Treasury Bills, and 9% in other approved instruments. This allocation strategy is designed to maximize returns while ensuring liquidity management.

In terms of credit quality, JS Income Fund has invested 63% of its assets in Government Securities and AAA-rated instruments. The fund also includes 24% in A+ rated and 7% in A rated securities, reflecting a focus on investment-grade securities to ensure substantial default protection and yield enhancement.

The fund's weighted average maturity (WAM) stands at 577 days, with a duration of 95 days as of December 2024. This indicates a moderate exposure to credit and interest rate risk, with strategic positioning along the yield curve and limited sensitivity to near-term rate fluctuations.

PACRA noted that any significant changes in the fund's investment policy or rating criteria could impact the assigned rating in the future.