The Pakistan Credit Rating Agency (Pacra) has revised the stability rating to 'A+(f)' (Single A Plus - Fund Rating) [Previous rating: "AA-(f)" (Double A Minus - Fund Rating)] of JS Income Fund (JSIF) an open-end income fund.
The fund's rating denotes a strong capacity to maintain relative stability in returns and possesses low exposure to risks. The fund's objective is to preserve capital while providing income growth, through investing primarily in debt and fixed income securities.
The rating reflects a strong credit quality of fund's assets, mainly consisting of investments in TFCs and government securities. The fund has a good liquidity profile, which, in addition to government securities, benefits from investments in money market, TDRs and placements highly liquid assets account for around more than half of the fund.
The fund has a diversified TFC portfolio. Although the current portfolio is dominated by A+ or above rated instruments, it has a significant portion of non-performing TFCs. A significant decrease in fund size along with the high concentration in unit holding pattern, further increases vulnerability to redemption pressure.-PR
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