Lahore, December 27, 2022 (PPI-OT):The assigned rating reflects elevated positioning of JS Investments Limited (“JSIL” or the “Company”) in the competitive asset management industry. The rating incorporates sound governance framework, experienced management team, adequate investment decision-making process, and satisfactory control infrastructure. The research and investment functions of the company are considered adequate. The AUMs of JSIL enhanced to around PKR 38bln including PKR 700mln AUMs of REIT Fund as on End-Nov’22 (Jun’22: PKR 27.6bln) mainly due to significant growth in JS Cash Fund and launch of new Income category funds.

Consequently, the market share elevated to 2.7% as on Nov’22 (Jun’22: 2.2%). JSIL has an adequate fund slate to cater to the needs of conventional and Shariah-focused clientele. The Company launched JS Government Securities Fund in Jul’22. The overall performance of funds remained above average. The Shariah Compliant Income and Money Market and Conventional Money Market comfortably exceeded both the industry average and benchmarks. Furthermore, during CY22 the Company expanded its product slate by launching JS Momentum Factor Exchange Traded Fund, JS Microfinance Sector Fund and JS Rental REIT Scheme.

On the financial side, the management fee of JSIL has reported PKR 121.3mln for 9MCY22 (9MCY21: PKR 119.9mln). The Company successfully managed to achieve breakeven during 3 months ended Oct’22 and is expected to show healthy growth going forward. The equity stood at PKR 1.3bln at End-Sep’22, which is well above the minimum capital requirement of PKR 230mln. On the digital side, JS Bank’s App “Zindagi” has also supported the Company to engrave its footprints in digitalization. Furthermore, the Company is in process of digital onboarding process for new clients. The rating incorporates the Company’s association with JS Bank Limited and potential synergies due to established presence of JS Group in the financial sector.

The rating is dependent on the management’s ability to effectively execute business development plans and leveraging its digital initiatives to strengthen its operations and outreach. Sustaining above average fund performance, increasing market share and further strengthening investment process remains key rating factors.

For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com