PACRA Maintains Asset Manager Rating of JS Investments Limited

The rating of JS Investments Limited (“JSIL” or the “AMC”) reflects its sound governance framework and consistent operational standards, supported by the financial strength derived from its association with JS Bank Limited, which holds an approximately 84.56% shareholding in the AMC. The rating also draws comfort from the AMC’s diversified revenue mix spanning CIS, VPS, REITs, and SMAs. During 9MCY26, industry AUMs grew ~12.4% YoY to PKR 4,721bln (Shariah-compliant ~19.2%; conventional ~6.3%), whereas JSIL’s AUMs (excluding SMAs) declined ~0.8% YoY to PKR 108.7bln (9MCY25: PKR 109.6bln). The shortfall is concentrated in conventional AUMs, which fell ~5.5% YoY to PKR 94.2bln on redemptions in fixed-term plans, while Shariah-compliant AUMs grew ~44.9% YoY to PKR 14.5bln. JS Microfinance Sector Fund and JS Islamic Money Market Fund outperformed their benchmarks, while equity funds trailed. At the AMC level, the top 10 investors account for ~45% of AUMs, indicating a moderately concentrated investor base. The AMC is broadening its product shelf through a planned multi-asset allocation fund, which adds commodity exposure alongside fixed income and equities, and the JSKSE100ETF, which extends its passive offering beyond the existing JS Momentum Factor ETF. Both launches are subject to regulatory approval and are yet to contribute to AUMs. Revenue diversification is more visible in other segments. SMAs stand at ~PKR 33bln, supported by the newly launched digital JSOne platform (~PKR 1.5bln onboarded). Consequently, income from SMA and advisory mandates rose to PKR 127mln (9MCY25: PKR 0.8mln), though it is performance-linked. In pensions, JSIL holds a ~13.2% share of the employees’ pension fund segment and ranks second by enrolments, though the segment remains a small part of total AUMs. The AMC manages two closed-end REITs, JS Rental REIT Fund and JS Hotel REIT Fund, with a combined fund size of ~PKR 4.1bln. Building on this platform, the AMC has extended its REIT expertise into advisory services, including feasibility studies for prospective real estate projects, adding an advisory-based income stream. The AMC’s distribution is anchored on partner banks, with BankIslami Pakistan Limited and JS Bank, supported by its own presence in Karachi (head office), and wealth centres in Karachi, Lahore and Peshawar. Digital channels are an important enabler of the AMC’s efforts to grow its retail investor base, with e-KYC-based customer onboarding, digital pension onboarding through the Pension Fund Portal, and the Zindigi App (~82,000 accounts) providing easy access to investment services. During 9MCY26, management fee increased ~10% to PKR 873mln (9MCY25: PKR 795mln), reflecting a higher average AUM base during the period. The share of associates, however, swung from a profit of PKR 385mln to a loss of PKR 39mln driven by mark to market losses from short term market volatility in the equity portfolio specifically in the first quarter, which led PAT to decline ~43% to PKR 211mln (9MCY25: PKR 370mln). Equity rose to PKR 2.8bln (CY25: PKR 2.6bln), as the AMC retained its earnings and no dividend was paid during the period.
The rating reflects the AMC’s well-defined governance structure and effective oversight framework, supported by its affiliation with JS Bank. Going forward, the rating will remain dependent on the AMC’s ability to improve fund performance and restore AUM growth in line with the industry, alongside broadening its investor base.

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 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 two Independent and the five Non-Executive Directors.