The Pakistan Credit Rating Agency Limited
Press Release


Mohsin Naseer

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Asset Manager Rating of First Capital Investments Limited

Rating Type Asset Manager
Action Maintain Maintain
AM Rating AM4++ AM4++
Outlook Stable Stable
Rating Watch - -

The rating recognizes the company's adequately experienced management team and satisfactory structured investment process in line with limited scale of operations. The rating incorporates management's concerted efforts towards sustaining its operations actively while making strides towards expansion of AUMs and fund slate (currently managing one fund only). The successful execution of business plan with the appointment of new CEO would remain imperative in strengthening the company's position in the domestic AMC indusrty. Furthermore, the company intends to start new venture; applied for a REIT License. This envisages the company's intention to take benefit from the expertise of company's sponsor in the real estate business.

The rating remains dependent on achieving sizeable growth in AUMs while diversifying the fund slate. Meanwhile, upholding high governance standards and exercising vigilance with reference to the control environment is crucial. Continued demonstration of good performance by the fund is critical.

About the Entity
FCIL commenced operations in 1995. FCIL is sponsored by First Capital Securities Corporation Limited (FCSC) the holding company of First Capital group with 87% shareholding. Mr. Sulaiman Ahmed Said AlHoqani - An Omani Investor - holds a strategic stake of 9.2% in FCIL and major shareholder in FCSC. Mr Sulaiman passed away on 9th of January, 2016. The family will legally nominate his representatives who will manage the assets of Mr. Suleiman in Pakistan. FCIL is currently managing one openend, equity fund namely First Capital Mutual Fund (FCMF) with assets under management of PKR 226mln at end Mar17.

The Board of Directors comprises four members, including the CEO. The remaining two
members including the chairman are independent. During the year Syed Nadeem Hussain has been appointed as the new Chairman of the board. He is a distinguished individual in financial industry, with acknowledged achievements in digital space. Mr. Imran Hafeez was appointed as the new CEO of FCIL in Sep16.

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.