PACRA Maintains Asset Manager Rating of First Capital Investments Limited on Rating Watch
|Rating Type||Asset Manager|
The rating reflects the company's adequate organizational structure, weak historical performance and limited fund slate comprising a single fund. The company has the lowest market share in the asset management industry. 786 Investments Limited has demonstrated its interest in acquiring the only mutual fund, First Capital Mutual Fund, of First Capital Investments Limited. The earlier proposition for transfer of management rights to 786 Investments Limited of First Capital Mutual Fund was declined by the SECP. In this regard, the company re-initiated the process and is again seeking regulatory approval. If approved, the management rights of the fund will be transferred to 786 Investments Limited. In case SECP does not grant approval for the proposed transaction, First Capital Investments Limited plans to surrender its AMC’s license to the regulator and wind up the fund under management. Considering these factors, PACRA has placed the AMC rating of First Capital Investments Limited on Rating Watch Developing.
The rating is dependent on the proposed merger of the company's fund and/or the management's decision to surrender its license. PACRA will monitor related regulatory developments and update its opinion accordingly.
First Capital Investments Limited (FCIL) commenced operations in 1995. The company 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 shareholding in FCSC. FCIL is currently managing one open-end, equity fund namely First Capital Mutual Fund (FCMF) with assets under management of PKR 120mln at end Feb-19. The Board of Directors comprises four members, including the CEO Mr. Imran Hafeez. The remaining two members including the chairman are independent.