PACRA Maintains Stability Rating of JS Islamic Income Fund

JS Islamic Income Fund ('JSIIF' or the 'Fund') is a medium risk profile, Shariah Compliant Income Fund. The objective of the Fund is 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 Dec’25, the Fund’s Assets Under Management (AUM) stood at ~PKR 2,054mln, compared to ~PKR 1,632mln as of Jun’25, reflecting growth in the Fund’s size over the period. In terms of asset allocation, ~88.7% of the portfolio was placed in bank deposits, ~9.8% was invested in Sukuks, while the remaining portion was allocated to other instruments. From a credit quality standpoint, ~60.0% of the Fund’s investments were allocated to AA rated avenues, ~30.1% to A+ rated instruments, and ~8.2% to A rated avenues, with the remaining exposure held in other instruments. This allocation reflects a balanced approach towards credit risk and return generation within a Shariah-compliant framework. The Weighted Average Maturity (WAM) of the Fund stood at 4 days as of Dec’25, indicating limited exposure to interest rate risk. The unit holding pattern remained concentrated, with the top ten investors accounting for approximately ~88.1% of the total units, indicating elevated redemption pressure. However, potential redemption requirements are considered manageable, given the Fund’s allocation to bank deposits, which provide liquidity to meet redemption needs. In terms of performance, the Fund reported an annualized return of approximately ~8.12% as of Dec’25, remaining below the benchmark return of approximately ~9.30% and the peer average return of approximately ~10.00%, 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.