PACRA Maintains Asset Manager Rating of First Capital Investments Limited

The rating reflects the Company's modest market position, adequate organizational framework, and a limited fund portfolio consisting of a single fund. The stability of the core management team remains a key supporting factor in the rating. The Company's AUMs stood at PKR 201mln at the end of 6MFY25 (FY24: PKR 144mln; 6MFY24: PKR 126mln); the expansion is attributable to an increase in NAV by ~63% since Dec’23. The Fund gave an annualized return in line with the industry average. However, the rating remains constrained by the Company's relatively small market share of ~0.01% and high investor base concentration. As of Dec'24, the Top 10 investors constitute ~92.3% of total AUMs. The related party concentration is ~87.5% of the total investors, reducing the redemption pressure. The Company has reported a net profit of PKR 38mln during 6MFY25 (FY24: PKR 32mln; 6MFY24: PKR 22mln). The profitability of AMC is primarily due to revaluation gains on investments. Due to the improvement in stock market performance, the equity of the Company shows the elevation and it stood at PKR ~272mln at the end of 6MFY25 (FY24: PKR ~234mln, 6MFY24: PKR ~223mln). Going forward, the Company has also planned to enter the REIT management sector, which will help diversify the revenue streams.
The rating is dependent on sustainable cash flows and profits which would ultimately result in stable equity. The Company’s ability to successfully execute its business strategy and achieve optimal utilization of its resources while leveraging group synergies remains imperative. Meanwhile, improving market share, maintaining strong fund performance, strengthening of core processes and meeting the regulatory thresholds would remain critical.

About the Entity
First Capital Investments Limited (‘FCIL’ or 'The Company’) was registered as a Private Limited by shares, incorporated under the Companies Act, 2017 ("the Act"), on October 27, 1994. 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 a major shareholding in FCSC. Ms. Aamna Taseer holds 4.7% of the shares, and Mr. Mian Ehsanul-Haq holds 3.7% of the shares. The other major shareholders comprise financial institutions. FCIL is currently managing one open-end, equity fund namely First Capital Mutual Fund (FCMF). The Board of Directors comprises four members, including the CEO, Mr. Imran Hafeez. The remaining three members including the Chairperson, are non-executive and heads the Investment, HR and Audit Committees.