PACRA Assigns Initial Stability Rating of JS Islamic Fixed Term Munafa Fund

JS Islamic Fixed Term Munafa Fund ("JS-IFTMF" or "the Fund") is categorized under a Shariah-compliant fixed rate/return scheme, with the objective of generating potentially high returns through investment in a diversified portfolio of Shariah-compliant instruments while ensuring the original investment amount is protected upon maturity. The Fund is structured as a fixed-term investment solution, making it suitable for investors seeking predictable, capital-protected returns through a low-risk Shariah-compliant portfolio over a defined investment horizon. Currently, Plan 1 is the only operational plan under the Fund, launched on April 28, 2026 and scheduled to mature on July 27, 2026. However, management has planned to launch four more plans under this scheme, spanning low to moderate risk profiles as per the Fund's Offering Document, thereby broadening its appeal across a wider spectrum of investor risk appetites and investment preferences. As of Jun'26, the Fund's Assets Under Management (AUM) stood at PKR 965mln, reflecting its early-stage operational position within a short fixed-term structure. In terms of asset allocation, approximately ~99.99% of the portfolio was maintained in cash and cash equivalents, reflecting a highly liquid portfolio positioning during the initial phase of the Fund's investment cycle, consistent with the Fund's emphasis on capital protection and liquidity management while facilitating timely deployment into eligible Shariah-compliant avenues in accordance with its investment mandate. From a credit quality perspective, the Fund maintained exposure predominantly (99.99%) to AAA rated counterparties, reflecting a sound and well-structured credit profile. The Fund's Weighted Average Maturity (WAM) stood at 0 days as of Jun'26, reflecting its liquid portfolio and the absence of interest rate and reinvestment risk. This short maturity profile is consistent with the Fund's current portfolio positioning and supports the preservation of liquidity and capital throughout the investment period. In terms of performance, the Fund generated an annualized return of 9.24% as of Jun'26. Given the Fund's recent launch and fixed-term structure, performance remains reflective of the portfolio's current deployment stage and prevailing market conditions, and is expected to stabilize as the portfolio progresses through its investment cycle towards maturity.
Going forward, the Fund's ability to maintain its credit quality, adhere to its stated investment objective, and comply with the assigned rating criteria throughout its tenure will remain key rating considerations. Any material changes in the Fund's investment strategy, portfolio composition, or credit profile may have implications for the assigned 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 Jun'26, JS Investments manages approximately ~PKR 92billion in assets, reflecting its strong position in Pakistan’s asset management industry.