Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the asset manager rating of JS Investments Limited, highlighting the firm's sound governance and operational standards. Despite a slight decline in assets under management (AUMs) over the past year, the financial strength of JS Investments Limited is underpinned by its association with JS Bank Limited, which holds a significant shareholding in the asset management company.

According to PACRA, the rating reflects a diversified revenue mix across various sectors, including CIS, VPS, REITs, and SMAs. The industry’s AUMs grew by approximately 12.4% year-on-year, reaching PKR 4,721 billion, whereas JS Investments Limited saw a minor decrease of about 0.8% in its AUMs, excluding SMAs. The decline is largely attributed to redemptions in conventional AUMs, which dropped by 5.5%, while Shariah-compliant AUMs experienced a substantial growth of 44.9%.

The agency noted that JS Investments Limited is working to expand its product offerings through a planned multi-asset allocation fund and the JSKSE100ETF, both pending regulatory approval. The company is also seeking to broaden its investor base through digital channels and partnerships with banks, facilitating easier access to investment services.

Revenue diversification is becoming more evident in other segments of the business, with SMAs supported by the recently launched digital JSOne platform. The AMC's income from SMA and advisory mandates has risen significantly, although it remains performance-linked. In the pension sector, JS Investments Limited holds a notable share of the employees' pension fund segment.

The company's distribution efforts are supported by partner banks, primarily BankIslami Pakistan Limited and JS Bank, alongside its wealth centers and digital initiatives. Despite an increase in management fees and equity, the AMC faced a decline in profit after tax due to short-term market volatility affecting its equity portfolio.

PACRA’s assessment underscores the importance of JS Investments Limited continuing to enhance fund performance and broaden its investor base to align with industry growth. The rating remains dependent on these factors as the company navigates an evolving asset management landscape.