JS Income Fund

RATING REPORT | May-26

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Rating History
Dissemination Date Rating Outlook Action Rating Watch
04-May-26 A+(f) Stable Maintain -
10-Dec-25 A+(f) Stable Maintain -
10-Jun-25 A+(f) Stable Maintain -
22-Oct-24 A+(f) Stable Maintain -
05-Apr-24 A+(f) Stable Maintain -
Fund Facts
Fund Name JS Income Fund
Fund Category Income Fund Scheme
Launch Date 26-Aug-2002
Fund Size (AUMs) 4,536.97
Fund Manager Mr. Safdar Raza
Fund Risk Profile Medium
Fund Benchmark 10.36%
Fund Objective JSIF is an income fund that preserves capital while generating returns above comparable bank deposits through a diversified portfolio of debt, government, and money market instruments, with liquidity maintained via bank deposits and spread transactions.
Asset Manager
Asset Manager JS Investments Limited
Year of Incorporation 1995
Conventional Funds 11
Shariah-Compliant Funds 5
Pension Schemes 4
CEO Ms. Iffat Zehra Mankani
CIO Mr. Syed Hussain Haider
AUMs 125,468
AMC Rating AM1
Fund History
Dec-25 Sep-25 Jun-25 Mar-25
Fund Size (PKR mln) 4,537 8,718 7,568 7,109
Category Size 556,325 559,007 477,059 485,047
Fund NAV (PKR/unit) 122.22 119.62 116.50 113.93
Fund Dividend (PKR/unit) 0 0 0 0
WAM (Days) 361 354 653 712
Duration (Days) 343 73 66 110

REPORT CONTENTS
  1. Rating Analysis
  2. Rating Scale
  3. Regulatory Disclosure

JS Income Fund

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ASSET ALLOCATION AND CREDIT QUALITY
Asset Allocation Dec-25 Sep-25 Jun-25 Mar-25
Cash 26.23 % 40.56 % 28.80 % 15.50 %
TFCs/Sukuks 13.04 % 7.60 % 5.20 % 3.20 %
PIBs 54.44 % 34.07 % 52.40 % 52.10 %
T-Bills 0.00 % 14.38 % 11.80 % 27.90 %
Commercial Papers 5.12 % 2.70 % 0.00 % 0.00 %
Others 1.17 % 0.69 % 1.80 % 1.40 %
Total 100 % 100 % 100 % 100 %
Credit Quality Dec-25 Sep-25 Jun-25 Mar-25
Govt/AAA 81.21 % 59.02 % 70.87 % 83.68 %
AA+ 0.00 % 0.00 % 0.00 % 0.00 %
AA 8.49 % 16.45 % 2.81 % 1.50 %
AA- 0.00 % 0.00 % 0.00 % 1.19 %
A+ 1.79 % 0.14 % 0.20 % 4.81 %
A 4.78 % 2.53 % 0.12 % 7.47 %
A- 2.54 % 0.00 % 0.00 % 0.00 %
Total 99 % 78 % 74 % 99 %
RISK, RETURN, AND PERFORMANCE
CY-25 Fund Return Benchmark Peer Return Fund St. Dev Peer St. Dev
Q1 2.47 % 3.04 % 2.55 % 0.28 % 0.18 %
Q2 3.13 % 2.84 % 2.75 % 0.27 % 0.35 %
Q3 2.68 % 2.66 % 2.66 % 0.18 % 0.15 %
Q4 2.16 % 2.64 % 2.74 % 0.08 % 0.15 %
Total 10.84 % 11.65 % 11.15 % 0.22 % 0.19 %
COMMENTARY

JS Income Fund (“JSIF” or the “Fund”) is a medium-risk income Fund aimed at capital preservation and generating returns above comparable bank deposits through a diversified mix of debt, government, and money market instruments, with liquidity supported via bank deposits and spread transactions. As of Dec’25, AUM declined to ~PKR 4,537mln from ~PKR 7,568mln in Jun’25. The Fund allocation comprised PIBs (54.4%), bank deposits (26.2%), TFCs/Sukuks (13.0%), commercial papers (5.1%), with the remainder in other instruments. In terms of credit quality, ~81.2% was invested in government/AAA rated avenues, followed by AA (8.4%), A (4.7%), and A- (2.5%), with the rest in other exposures. The Fund’s WAM stood at ~361 days, reflecting moderate interest rate risk, while credit risk is mitigated by strong sovereign exposure. The unit base remains concentrated (top 10 ~92.9%, adjusted ~80.2%), indicating redemption pressure, though manageable due to liquid placements. The Fund underperformed, delivering ~7.93% return versus benchmark (~10.36%) and peers (~12.96%); any changes in investment policy or rating criteria may impact its rating.

May-26

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JS Income Fund

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Stability Rating
The Stability rating is based on a detailed quantitative assessment of fund's portfolio and qualitative assessment of fund management. It provides the investors with an objective measure as to the main areas of risk to which the income funds are exposed, which is credit risk, liquidity risk and interest rate risk.
Credit Risk

The foremost factor is credit risk, having the highest weight in the rating matrix. The opinion is based on review of various factors, including the fund’s investment policies regarding credit risk exposure towards various market segments, individual and cumulative credit quality of the investment portfolio, the diversification of assets across investment types and issuers, and weighted average maturity.

Market Risk

The more complex part of evaluating a fund’s stability involves determining the fund’s sensitivity to the changing market conditions PACRA assess market risk in the nexus of variables affecting the market value of the underlying portfolio. Market value can fluctuate due to a number of variables largely including interest rate, liquidity and operating environment.

Liquidity Risk

The liquidity of a security refers to the speed at which that security can be sold for approximately the price at which the fund has it valued. Securities which are less liquid are subject to greater price variability. While analyzing the liquidity of investment portfolio, PACRA considers the types of investments in the portfolio,

Historical Return Volatility

Funds having operational history of six-months or more, the variability in returns is gauged on standardized basis through coefficient of variation for each fund in a category. The coefficient of variation is calculated by dividing standard deviation of fund’s monthly returns by average monthly return (SD of Monthly Returns/Average Monthly Return).

Asset Manager

Management scoring is derived from the asset manager rating of the company managing the fund. PACRA reviews the policies and procedures developed by the management to meet its investment objectives. Therefore, an assessment of the fund manager’s qualification and experience, asset management company’s capabilities and track record are an integral part to the fund rating process.

May-26

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JS Income Fund


Rating Scale

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Stability Rating
An opinion on the relative stability in a fund’s return, the rating provides an objective measure as to the main areas of risk to which fixed-income funds are exposed, that is credit risk, liquidity risk and interest rate risk.
Scale Long-Term Rating
AAA (f)
Exceptionally Strong. An exceptionally strong capacity to maintain relative stability in returns and possesses negligible exposure to risk.
AA+ (f)
AA (f)
AA- (f)
Very Strong. A very strong capacity to maintain relative stability in returns and possesses low exposure to risk. This capacity may nevertheless be more vulnerable to changes in circumstances or economic conditions.
A+ (f)
A (f)
A- (f)
Strong. A fund with stable performance generally in line with its peers with strong capacity to respond to future opportunities or stress situations.
BBB+ (f)
BBB (f)
BBB- (f)
Adequate. An adequate capacity to maintain relative stability in returns and possesses high exposure to risks. This capacity may be impacted adversely by changes in circumstances or economic conditions.
BB+ (f)
BB (f)
BB- (f)
Inadequate. A low capacity to maintain stability in returns and possesses very high exposure to risks.
B (f)
Weak. A very low capacity to maintain stability in returns and possesses very high exposure to risks.
*Where "f" donates fund ratings
Rating Modifiers | Rating Actions
Outlook (Stable, Positive, Negative, Developing)
Indicates the potential and direction of a rating over the intermediate term in response to trends in economic and/or fundamental business / financial conditions. It is not necessarily a precursor to a rating change. ‘Stable’ outlook means a rating is not likely to change. ‘Positive’ means it may be raised. ‘Negative’ means it may be lowered. Where the trends have conflicting elements, the outlook may be described as ‘Developing’.
Rating Watch
Alerts to the possibility of a rating change subsequent to, or, in anticipation of some material identifiable event with indeterminable rating implications. But it does not mean that a rating change is inevitable. A watch should be resolved within foreseeable future, but may continue if underlying circumstances are not settled. Rating watch may accompany rating outlook of the respective opinion.
Suspension
It is not possible to update an opinion due to lack of requisite information. Opinion should be resumed in foreseeable future. However, if this does not happen within six (6) months, the rating should be considered withdrawn.
Withdrawal
A rating is withdrawn on a) termination of rating mandate, b) the debt instrument is redeemed, c) the rating remains suspended for six months, d) the entity/issuer defaults., or/and e) PACRA finds it impractical to surveil the opinion due to lack of requisite information.
Harmonization
A change in rating due to revision in applicable methodology or underlying scale.
Surveillance: Surveillance on a publicly disseminated rating opinion is carried out on an ongoing basis till it is formally suspended or withdrawn. A comprehensive surveillance of rating opinion is carried out at least once every six months. However, a rating opinion may be reviewed in the intervening period if it is necessitated by any material happening. Rating actions may include "maintain", "upgrade", or "downgrade".
Disclaimer: PACRA has used due care in preparation of this document. Our information has been obtained from sources we consider to be reliable but its accuracy or completeness is not guaranteed. PACRA shall owe no liability whatsoever to any loss or damage caused by or resulting from any error in such information. Contents of PACRA documents may be used, with due care and in the right context, with credit to PACRA. Our reports and ratings constitute opinions, not recommendations to buy or to sell.

May-26

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JS Income Fund


regulatory disclosure

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  1. Rating Team Statements
    1. Rating is just an opinion about the creditworthiness of the entity and does not constitute a recommendation to buy, hold, or sell any security of the entity rated or to buy, hold, or sell the security rated, as the case may be. (Chapter III; 14-3-(x))
    2. Conflict of Interest
      1. The Rating Team or any of their family members have no interest in this rating (Chapter III; 12-2-(j))
      2. PACRA, the analysts involved in the rating process, and members of its rating committee and their family members do not have any conflict of interest relating to the rating done by them (Chapter III; 12-2-(e) & (k))
      3. The analyst is not a substantial shareholder of the customer being rated by PACRA [Annexure F; d-(ii)]
      4. Explanation: for the purpose of the above clause, the term "family members" shall include only those family members who are dependent on the analyst and members of the rating committee.

  2. Restrictions
    1. No director, officer, or employee of PACRA communicates the information acquired by him for use for rating purposes to any other person, except where required under law to do so. (Chapter III; 10-(5))
    2. PACRA does not disclose or discuss with outside parties or make improper use of the non-public information which has come to its knowledge during a business relationship with the customer. (Chapter III; 10-7-(d))
    3. PACRA does not make proposals or recommendations regarding the activities of rated entities that could impact a credit rating of the entity subject to rating. (Chapter III; 10-7-(k))

  3. Conduct of Business
    1. PACRA fulfills its obligations in a fair, efficient, transparent, and ethical manner and renders high standards of services in performing its functions and obligations. (Chapter III; 11-A-(a))
    2. PACRA uses due care in the preparation of this Rating Report. Our information has been obtained from sources we consider to be reliable, but its accuracy or completeness is not guaranteed. PACRA does not, in every instance, independently verify or validate information received in the rating process or in preparing this Rating Report. (Clause 11-(A)(p))
    3. PACRA prohibits its employees and analysts from soliciting money, gifts, or favors from anyone with whom PACRA conducts business. (Chapter III; 11-A-(q))
    4. PACRA ensures before the commencement of the rating process that an analyst or employee has not had a recent employment or other significant business or personal relationship with the rated entity that may cause or may be perceived as causing a conflict of interest. (Chapter III; 11-A-(r))
    5. PACRA maintains the principle of integrity in seeking rating business. (Chapter III; 11-A-(u))
    6. PACRA promptly investigates in the event of misconduct or a breach of the policies, procedures, and controls, and takes appropriate steps to rectify any weaknesses to prevent any recurrence, along with suitable punitive action against the responsible employee(s). (Chapter III; 11-B-(m))

  4. Independence & Conflict of Interest
    1. PACRA receives compensation from the entity being rated or any third party for the rating services it offers. The receipt of this compensation has no influence on PACRA’s opinions or other analytical processes. In all instances, PACRA is committed to preserving the objectivity, integrity, and independence of its ratings. Our relationship is governed by two distinct mandates: i) rating mandate - signed with the entity being rated or issuer of the debt instrument, and ii) fee mandate - signed with the payer, which can be different from the entity.
    2. PACRA does not provide consultancy/advisory services or other services to any of its customers or their associated companies and associated undertakings that are being rated or have been rated by it during the preceding three years, unless it has an adequate mechanism in place ensuring that the provision of such services does not lead to a conflict of interest situation with its rating activities. (Chapter III; 12-2-(d))
    3. PACRA discloses that no shareholder directly or indirectly holding 10% or more of the share capital of PACRA also holds directly or indirectly 10% or more of the share capital of the entity which is subject to rating or the entity which issued the instrument subject to rating by PACRA. (Chapter III; 12-2-(f))
    4. PACRA ensures that the rating assigned to an entity or instrument is not affected by the existence of a business relationship between PACRA and the entity or any other party, or the non-existence of such a relationship. (Chapter III; 12-2-(i))
    5. PACRA ensures that the analysts or any of their family members shall not buy, sell, or engage in any transaction in any security which falls in the analyst’s area of primary analytical responsibility. This clause, however, does not apply to investments in securities through collective investment schemes. (Chapter III; 12-2-(l))
    6. PACRA has established policies and procedures governing investments and trading in securities by its employees and for monitoring the same to prevent insider trading, market manipulation, or any other market abuse. (Chapter III; 11-B-(g))

  5. Monitoring and Review
    1. PACRA does not monitor Stability Rating on continuous basis. Any potential change therein due to any event associated with the fund is incorporated in next review; (Chapter III | 18-(a))
    2. PACRA reviews all outstanding ratings on semi-annual basis (Chapter III | 18-(b))

  6. Proprietary Information
    1. All information contained herein is considered proprietary by PACRA. Hence, none of the information in this document can be copied or, otherwise reproduced, stored or disseminated in whole or in part in any form or by any means whatsoever by any person without PACRA’s prior written consent

May-26

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