The Pakistan Credit Rating Agency Limited
Press Release


Madiha Sohail

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PACRA Assigns Initial REIT Manager Rating to JS Investments Limited

Rating Type REIT Manager Rating
(30-Jun-22 )
Action Initial
Long Term RM 3
Short Term -
Outlook Stable
Rating Watch -

The assigned rating reflects the experience of key executives and the profile of sponsors and the modest positioning of JS Investments Limited (“JSIL-RMC” or the “Company”) in the competitive asset management industry. The rating incorporates a sound governance framework and satisfactory control infrastructure. The research and investment functions of the company are considered adequate. The Company has launched its first-ever Rental REIT Fund. The initial fund size is PKR 657 mln. The subject building, named "The Center" under the Fund is situated at Abdullah Haroon Road, near Zainab Market. The property is in a prime commercial zone of Karachi surrounded by Government buildings and corporate offices. The performance track record of fund will be established over time, the income of the JSIL-RMC will be diversified through management fees. The Company’s equity stood at ~PKR 1.4bln at year-end-Mar’22, which is well above the minimum capital requirement. JSIL has also licensed for asset management, private equity, and venture capital to further support the core income. The rating incorporates the Company's association with JS Bank Limited and potential synergies due to the established presence of JS Group in the financial sector.
The rating is dependent upon the Company’s ability to sustain its market share and uphold strong investment processes and control environment. Meanwhile, retention of key management, sound governance practices, and consistent performance of funds is critical. Any sustained downturn in fund performance and/or significant loss in market share will impact the rating.

About the Entity
JS Investments Limited 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, Investment Advisory, Private Equity, Venture Capital, and REIT management. JSIL AMC is currently managing fourteen open-ended funds and two Pension funds with AUMs base of PKR 29.5bln. The AMC has been given AM2 rating by PACRA. JSIL’s control vests in the eight-member board of directors including the CEO. There are two independent directors while all other directors except the CEO are non-executive.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.