PACRA Upgrades Asset Manager Rating of JS Investments Limited

The rating upgrade reflects JS Investments Limited’s (“JSIL” or the “AMC”) progressive and ongoing elevation of operational quality, governance, and service standards. This reflects a strong commitment to excellence, ongoing process enhancement, and adherence to best practices. The upgrade highlights the success of initiatives focused on improving performance, customer experience, and compliance with industry standards. Overall, the upgrade signifies a positive trajectory toward long-term growth and quality leadership. The AMC’s management is backed by a strong governance framework, with independent control functions reporting to Board Committees for effective oversight. The investment management function follows a research-driven approach, ensuring disciplined portfolio management and strong risk-adjusted performance. At end-Sep’25, the AMC’s Assets under Management (AUMs) grew by ~50% since Sep’24, capturing an estimated market share of 3.72%, highlighting its growing influence in the asset management industry and reinforcing client confidence in its capabilities. The growth is attributed to an expanding customer base, increasing retail participation, and steady inflows through digital channels. Additionally, advisory and SMA portfolios contributed around PKR 38bln to the total managed assets. Over time, JSIL has improved its investor mix, with declining concentration among top investors. The AMC is aggressively expanding its retail base and leveraging its strong distribution network through Bank Islami Pakistan Limited (BIPL) and JS Bank, while continuing to lead digital transformation in the industry. JSIL is actively driving digital transformation in the industry. The AMC has strengthened its digital infrastructure through initiatives like the Zindigi App, digital pension onboarding, the SMA portal, and a WhatsApp bot, supported by new wealth centers to enhance investor access and service. These efforts have improved customer convenience and digital inflows, especially from younger investors. JSIL has also expanded its product suite with Fixed Return Plans for risk-averse investors, and innovative offerings including the JS Microfinance Sector Fund, JS KPK Pension Fund, and JS Fixed Term Munafa Plans. The AMC promotes financial literacy through webinars and its “Children Benny Guide, Money Land” initiative, educating young audiences on savings and investments. JSIL has also launched the “JS Rise Program”, a remote-friendly certification aimed at empowering women to become certified mutual fund distributors. The AMC strengthened its sustainability focus through a Board-level ESG Oversight Committee to steer its long-term sustainability agenda and stakeholder alignment. At end-Sep’25, the AMC’s total assets stood at PKR 3,851mln (Dec’24: PKR 3,581mln), while equity increased to PKR 2.5bln (Dec’24: PKR 2.1bln), reflecting steady balance sheet growth supported by improved profitability and operational efficiency. During 9MCY25, the management fee surged by 132% to PKR 795mln (9MCY24: PKR 343mln). Consequently, profit after tax rose to PKR 370mln during 9MCY25 (9MCY24: PKR 256mln). The rating incorporates the AMC’s affiliation with JS Bank Limited and the synergistic benefits derived from the broader JS Group’s established presence in Pakistan’s financial sector.
The rating relies on the AMC's ability to enhance its market position in AUMs, maintain sound fund performance, and uphold strong governance and organizational structure. Improving investor diversification and increasing retail penetration through digital channels will be crucial.

About the Entity
JSIL, established in 1995, is listed on the Pakistan Stock Exchange. The AMC is part of the Jahangir Siddiqui (JS) Group. JS Bank Limited holds ~85% shareholding in the AMC. 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. JSIL holds licenses for Asset Management, Investment Advisory, Pension Fund, Private Equity/Venture Capital, and REIT Management, and is actively operating across these segments. JSIL’s control lies with an eight-member board of directors, including the CEO. The Board comprises three independent and the remaining non-executive directors (excluding the CEO), including three female Directors.