PACRA Maintains the Asset Manager Rating of First Capital Investments Limited
|Rating Type||Asset Manager|
The rating reflects the company's modest market share, adequate organizational structure, weak fund performance and limited fund slate comprising a single fund. The Company's AUMs have witnessed up stick by 8.8% since Jun'19 and stood at PKR 106mln at end Jun-20. The net losses of the Company has been decreased from PKR 49mln (Jun-19) to PKR 5mln (Jun-20), due to unrealized gain on investments. While the equity of the Company has come under pressure due to losses and currently stands at PKR 202mln at end Jun-20, which is slight above the regulatory requirement. The ratings of the Company are placed on Watch and highlight the need to fill the gap, while ensuring no further depletion in equity. PACRA will monitor the situation and may take future action accordingly.
The rating is dependent on the board's decision regarding the future prospects and continuity of business operations. Meanwhile, maintaining all regulatory requirements are critical. Any shortfall in this regard will have a negative impact.
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 78.85% 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 106mln at end Jun-20. The Board of Directors comprises four members, including the CEO Mr. Imran Hafeez. The remaining two members including the chairman are independent.