PACRA Maintains Stability Rating of JS Islamic Income Fund

JS Islamic Income Fund ("JSIIF" or "the Fund") is a low-risk Shariah-compliant fixed income Fund designed to provide investors with stable returns while adhering strictly to Islamic investment principles. The Fund's conservative strategy focuses on high-quality Islamic instruments, making it particularly suitable for investors seeking Shariah-compliant income solutions with capital preservation. As of December 2024, the Fund reported Assets Under Management (AUM) of PKR 1.7 billion, reflecting its growing presence in Pakistan's Islamic finance sector. In terms of asset class, the Fund maintains a diversified Islamic 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. In perspective of credit quality, the Fund had 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 allocation reflects a disciplined approach to credit risk management within a Shariah-compliant framework. With a Weighted Average Maturity (WAM) of 281 days and duration of 44 days as of December 2024, the Fund maintains limited exposure to credit and interest rate risk. The moderate WAM allows for yield optimization while the short duration provides strong protection against rate volatility, particularly valuable in the current monetary environment.
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 is the oldest private-sector Asset Management Company in Pakistan. The company was established in 1995 and is listed on the Pakistan Stock Exchange. The Company is part of the Jahangir Siddiqui (JS) Group. JS Bank Limited holds ~85% shareholding in the Company. JS Group has a strong presence in the financial sector with entities operating in the banking, insurance, brokerage, and asset management sectors. The group has recently ventured into energy infrastructure and OMC segments. JS Investments possesses licenses for Asset Management Services, Investment Advisory, Private Equity, Venture Capital services, and REIT management. In addition, the Company also acts as Pension Fund Manager under the Voluntary Pension System Rules, 2005. Ms. Iffat Zehra Mankani is the Chief Executive Officer of JS Investments Limited. She comes with a globally diversified experience of over two decades in both public and private markets across multiple asset classes. The Company’s board of directors comprises eight members including the Chief Executive Officer. The board is dominated by representatives of JS Bank Limited and Jahangir Siddiqui & Company Limited. The board has three independent directors while all the other directors are non-executive directors. The board members possess strong profiles and skills suited to the financial services industry. Assets under management of the Company stood at ~PKR 128.17bln at the end of Dec'24.