PACRA Maintains Stability Rating of JS Islamic Income Fund

JS Islamic Income Fund (“JSIIF” or “the Fund”) is positioned as a low-risk, Shariah-compliant fixed-income strategy, engineered to generate stable returns and ensure capital preservation over medium to long term, by investing primarily in quality Sukuks, Shariah-compliant Government Securities, Shariah compliant Bank Deposits and other Shariah-compliant debt instruments. As of June 30, 2025, the Fund reported Assets Under Management (AUM) of PKR 1,632 million. The Fund reflects a strategically calibrated asset mix: 50% exposure to Development Finance Institutions (DFIs) forming the core income-generating base, 32% in Shariah-compliant bank placements providing liquidity resilience, 12% in Government of Pakistan Ijara Sukuks serving as the sovereign credit anchor, and 6% in other compliant instruments to enhance diversification. Credit quality remains a key strength, with 70% of assets allocated to high investment-grade categories—34% in AAA, 30% in AA+, and 6% in AA rated avenues, offering a substantial buffer against credit deterioration. The Fund’s risk posture is conservatively managed, supported by a Weighted Average Maturity (WAM) of 237 days and a short duration of 29 days, materially limiting interest rate and credit sensitivity. Investor concentration remains elevated, with the top ten unit holders accounting for 83% of AUM, introducing potential redemption risk under stress scenarios. Nevertheless, the Fund’s short duration profile and 32% allocation to highly liquid bank placements provide strong and immediate liquidity coverage.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on rating.

About the Entity
JS Investments Limited holds the distinction of being Pakistan’s oldest private-sector Asset Management Company, established in 1995 and listed on the Pakistan Stock Exchange. As a key entity within the Jahangir Siddiqui (JS) Group, the Company benefits from a strong financial ecosystem, with JS Bank Limited maintaining a majority stake of approximately 85%. The JS Group has an extensive footprint across Pakistan’s financial sector, with operations spanning banking, insurance, brokerage, and asset management, while also expanding into energy infrastructure and the oil marketing sector. JS Investments Limited is a fully licensed financial institution, authorized to provide Asset Management Services, Investment Advisory, Private Equity, Venture Capital, and REIT Management. Additionally, the Company serves as a Pension Fund Manager under the Voluntary Pension System Rules, 2005, further solidifying its position as a diversified financial services leader. Under the leadership of Ms. Iffat Zehra Mankani (CEO), JS Investments leverages her extensive global expertise spanning over two decades in public and private markets across multiple asset classes. The Company’s governance structure is anchored by an eight-member Board of Directors, comprising a blend of independent and non-executive directors, with strong representation from JS Bank Limited and Jahangir Siddiqui & Company Limited. The Board is composed of highly accomplished professionals with deep expertise in financial services, ensuring strategic oversight and governance excellence. As of June 2025, JS Investments Limited reported Assets Under Management (AUM) of approximately PKR 124 billion, reflecting its sustained growth and leadership in Pakistan’s asset management industry.