PACRA Maintains Asset Manager Rating of First Capital Investments Limited on Rating Watch

Lahore, March 28, 2019 (PPI-OT): 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.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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