PACRA Maintains Stability Rating of JS Income Fund

JS Income Fund ('JSIF' or the 'Fund') is a medium risk profile, Income Fund. The objective of the Fund is to preserve investor’s capital while providing a regular stream of current income on an annual basis which is higher than that offered by commercial banks on deposits of a similar liquidity profile as this Fund. The Fund operates a diverse portfolio of investment-grade debt securities, government securities and money market instruments. The Fund may maintain liquidity in the form of spread transactions and bank deposits. As of Dec’25, the Fund’s Assets Under Management (AUM) stood at ~PKR 4,537mln, compared to approximately ~PKR 7,568mln as of Jun’25, indicating a contraction in the Fund size over the period. In terms of asset class, ~54.4% of the portfolio was invested in Pakistan Investment Bonds (PIBs), ~26.2% in bank deposits, ~13.0% in TFCs/Sukuks, and ~5.1% in commercial papers, while the remaining portion was allocated to other instruments. From a credit quality standpoint, the Fund’s investment allocation was primarily concentrated in Government Securities/ AAA rated avenues, representing ~81.2% of the portfolio. Exposure to AA rated instruments stood at ~8.4%, while allocations to A and A- rated avenues were recorded at ~4.7% and ~2.5%, respectively, with the remaining exposure held in other instruments. The Weighted Average Maturity (WAM) of the Fund stood at ~361 days as of Dec’25, indicating exposure to moderate credit rate and interest rate risk. However, the associated credit risk is mitigated through the Fund’s allocation to Government Securities/AAA rated instruments. The unit holding pattern remained concentrated, with the top ten investors accounting for approximately ~92.9% of the total units, of which ~12.7% was held by an associated party. On an adjusted basis, the top ten concentration stood at ~80.2%, indicating elevated redemption pressure. Nevertheless, potential redemption pressure is considered manageable, given the Fund’s allocation to bank placements, which provide liquidity to meet redemption requirements. In terms of performance, the Fund reported an annualized return of approximately ~7.93% as of Dec’25, remaining below both the benchmark return of approximately ~10.36% and the peer average return of approximately ~12.96%, reflecting underperformance relative to comparable funds.
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, established in 1995, is Pakistan’s oldest private-sector asset management company and is listed on the Pakistan Stock Exchange. It operates as part of the Jahangir Siddiqui (JS) Group, with JS Bank Limited holding a majority stake of around ~85%. The Company offers a wide range of services, including asset management, investment advisory, private equity, venture capital, REIT management, and pension fund management under the Voluntary Pension System Rules, 2005. Led by CEO Ms. Iffat Zehra Mankani, the firm benefits from strong leadership and an experienced eight-member Board comprising independent and non-executive directors. As of December 2025, JS Investments manages approximately PKR ~125 billion in assets, reflecting its strong position in Pakistan’s asset management industry.