First Capital Investments Limited

RATING REPORT | Apr-26

Logo
Rating History
Dissemination Date Rating Outlook Action Rating Watch
03-Apr-26 AM4++ Stable Maintain -
03-Apr-25 AM4++ Stable Maintain -
03-Apr-24 AM4++ Stable Maintain -
05-Apr-23 AM4++ Stable Maintain -
05-Apr-22 AM4++ Stable Maintain -
About the Entity

First Capital Investments Limited (‘FCIL’ or 'AMC’) commenced its operations in 1995. The AMC 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.

Rating Rationale

The assigned rating of First Capital Investments Limited (‘FCIL’ or 'AMC’) reflects its 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. As of CY25, Pakistan’s Asset Management industry stood at PKR 4.5trln, growing ~4% YoY. The AMC sector is dominated by money market (56%), income (24%), and equity funds (20%), with equity growth supported by market gains with modest fresh inflows. Shariah-compliant funds have grown rapidly, representing 47% of total AUMs of AMC industry as of CY25. Despite challenges like low retail penetration, limited awareness, and macro sensitivity, the industry offers strong growth potential through retail expansion, pension solutions, and innovative products like infrastructure funds. Achieving sustainable recovery and growth will require a comprehensive, multi-pronged strategy focused on investor engagement, financial literacy, product diversification, distribution, digitalization, and strategic partnerships.
As of 6MFY26, the AUMs of FCIL have increased by 15% and elevated to PKR 231mln (6MFY25: PKR 201mln) with the market share of 0.01% (6MFY25: 0.005%). However, the rating remains constrained by the AMC's relatively small market share and high investor base concentration. As of Dec'25, the top 10 investors constitute ~93% of total AUMs. The related party concentration is ~87.7% of the total investors, reducing the redemption pressure. The profitability of FCIL was reported at PKR 32mln as of FY25 (FY24: PKR 33mln), largely attributable to unrealized gains on investments, and increased to PKR 41mln by the end of 6MFY26. FCIL’s equity rose to PKR 307mln at the end of 6MFY26 (FY25: PKR 266mln), comfortably exceeding the minimum regulatory requirement. The AMC plans to diversify its product portfolio by entering the REIT management sector, aiming to broaden revenue streams. The majority of required procedures have been completed, with only SECP approval still pending.

Key Rating Drivers

The rating is dependent on sustainable cash flows and profits which would ultimately result in stable equity. The AMC’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 core processes, and meeting the regulatory thresholds would remain critical.

REPORT CONTENTS
  1. Rating Analysis
  2. Financial Summary
  3. Rating Scale
  4. Regulatory Disclosure

First Capital Investments Limited

rating analysis

Logo
Profile
Structure

First Capital Investments Limited ("FCIL" or the "AMC") was incorporated in Oct-1994 as a Public Unlisted Company.


Background

FCIL, a subsidiary of First Capital Securities Corporation, is a Non-Banking Finance Company licensed to carry out Asset Management services. The AMC plans to enter the REIT management sector, aiming to broaden revenue streams. Most of the necessary formalities have already been completed, and the process is currently awaiting final approval from the Securities and Exchange Commission of Pakistan.


Market Share

The market share of the AMC stood at ~0.01% at the end of Dec'25 (Dec'24: ~0.0045%).


Diversification of Fund Mix

The AMC is currently managing one open-end mutual fund, First Capital Mutual Fund. The Fund falls under the equity category. The AMC is planning to further diversify its product range through the launch of REIT fund in near future. 


Investor Concentration

The top 10 investors concentration is significantly high ~93%. Whereas, the related party concentration is ~87.7% of the total investors, reducing the redemption pressure.


Ownership
Ownership Structure

FCIL is sponsored by First Capital Securities Corporation Limited (FCSC) – the holding company of First Capital Group. FSCS along with the directors and other family members, hold 78.8% shareholding. Mr. Sulieman Ahmed Said Al-Hoqani, an Omani Investor, holds a strategic stake of 9.2% in FCIL. 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.


Business Acumen

FCIL is part of the Financial Services Group of the First Capital / Pace Group ("Group"). First Capital Group has participation across multiple sectors including brokerage, asset management, real estate and media. On the group level, it has been decided to focus on property development, its core business.


Financial Strength

Building on years of experience, the First Capital Group enjoys a moderate financial foundation emanating from its well diversified businesses. The equity of First Capital Securities Corporation Limited (the holding company of First Capital Group) stood at PKR 3.3bln and profitability stood at PKR 137mln at the end of 6MFY26. 


Governance
Board Structure

The Board of Directors of the Company comprises four members including the CEO. The remaining three members including the Chairperson, are non executive and head the Investment, HR and Audit Committees.


Members’ Profile

Ms. Fauzia Husain Qureshi - Chairperson received a Bachelors of Architecture with a first class from the University of Engineering and Technology, Lahore in 1975 and a Master of Architecture in Advanced Studies from the Massachusetts Institute of Technology, Cambridge USA in 1980. She is currently the Director of FHQ & Associates (SMC-PVT) Ltd. She taught for 36 years in the National College of Arts (NCA) and retired as Professor and Principal of the National College of Arts in June 2011. She is currently President ICOMOS Pakistan for the term 2017-2020. Mr. Jawad Saleem - Non-Executive Director with over 20 years of experience, is the Country Head of Finance at Majid Al Futtaim Hypermarkets Pakistan. He has held key roles at organizations like PwC, Shaukat Khanum Hospital, Atlas Copco, Levi Strauss, and First Capital Group. With expertise in business expansion, financial management, and mergers & acquisitions, he has worked across manufacturing, retail, entertainment, investment banking, and healthcare. He holds multiple professional certifications, including memberships in accounting bodies in Australia and the UK, and is a Certified Internal Control Auditor (USA). He also has an MBA. Mr. Shahzad Jawahar - Non-Executive Director, is also associated as a Director with Pace Islamabad Pvt. Limited, Pace Multiplierz Pvt. Ltd., and Falcon Commodities Pvt. Ltd., bringing valuable financial and governance expertise to these organizations.


Board Effectiveness

The Board exercises close monitoring of the accounting and financial reporting and hiring process through its audit and HR committees. The committees are headed by Ms. Fauzia Hussain Qureshi.


Transparency

The external auditors, Russell Bedford - Rehman Sarfraz Rahim Iqbal Rafiq (RSRIR) Chartered Accountants — classified in the “A” category on the SBP’s panel of auditors, have issued an unqualified opinion on the AMC’s financial statements for the period ended FY25.


Management
Organizational Structure

First Capital Investments Limited has an adequate organizational structure. It operates through five main departments including Finance, Investment and Fund Management, IT, Risk & Compliance and Marketing & Distribution, which directly report to the CEO.


Management Team

The senior management team of the AMC has a long-term association with the group. Mr. Imran Hafeez - Chief Executive Officer, is a commerce graduate and an associate member of the Pakistan Institute of Public Finance Accountants with over 16+ years of experience in the field of finance. Previously with PwC, he has expertise in fund raising, risk management, and financial strategy. A Commerce graduate and affiliate of ICAP and PIPFA, he now focuses on business growth at First Capital Investment Limited. He is also working as the group director of finance for the First Capital Group. Mr. Ghazanfar Ali Bukhari - Chief Investment Officer holds a Master’s degree in Economics and serves as CIO / Fund Manager. He brings extensive experience of over 24 years, including 16 years in relevant roles, reflecting strong expertise in investment management and strategic portfolio oversight. Syed Asad Abbas Ali Zaidi - Chief Financial Officer holds an MBA in Finance. With around 19 years of professional experience, including 13 years in relevant roles, he possesses solid expertise in financial management, reporting, and corporate finance.


Technology Infrastructure

FCIL has outsourced its back-office services to IT Minds – a subsidiary of CDC. IT Minds remains responsible for providing daily Net Asset Value (NAV) of First Capital Mutual Fund.


Control Environment

The AMC has devised policies and procedures for its operations and risk management.


Investment Risk Management
Credit Risk

First Capital Investments Limited uses an Excel-based model to evaluate overall portfolio risk, incorporating factors such as market volatility, asset allocation, and liquidity. The model supports effective monitoring and informed decision-making.


Liquidity Profile

The risk management department generates liquidity and redemption risk report for the equity fund that shows a list of liquid stocks which will be able to meet heavy redemption under distress conditions.


Market Risk

The AMC remains exposed to market volatility due to its concentration in a single equity fund. This limited diversification heightens sensitivity to market fluctuations and may constrain its ability to effectively mitigate risk across varying market conditions.


Portfolio Management
IC Composition

First Capital Investments Limited's investment committee comprises three members, including the CEO, CFO, and CIO/Fund Manager.


Effectiveness

The IC formally meets on a weekly basis in order to make investment decisions.


Investment Research and Analysis

The research department is headed by Ms. Zara. She is pursing chartered accountancy and did her article ship from A.F Ferguson & Co. The research head is independently reportable to CEO.


Customer Relationship
Investor Services

The AMC publishes its fund manager reports on its website in a timely manner, reflecting transparency and regular investor communication. However, the absence of a dedicated customer management system may limit client engagement, data management efficiency, and scalability of operations.


Investor Reporting

The AMC's webpage is used as a reporting platform for dissemination of information pertaining to the AMC and its funds under management, which includes NAV history, fund performance and other important announcements.


Distribution and Sales Network

First Capital Investments Limited has a highly constrained distribution and sales network, currently limited to Lahore, which may restrict its outreach and growth potential in broader markets.


Performance
Asset Under Management

The AMC currently operates with a single fund. As of Dec’25, the AUMs of First Capital Investments Limited have increased by 15%, reaching PKR 231 million compared to PKR 201 million in Dec’24. While this growth reflects a positive trend, the overall scale remains modest, indicating limited market presence and highlighting the need for product diversification to achieve sustainable expansion.


Asset Manager

The management fee of First Capital Investments Limited amounted to PKR 3mln as of FY25 (FY24: PKR 2mln), while it stood at PKR 2mln at the end of 6MFY26. The profitability of FCIL was reported at PKR 32mln as of FY25 (FY24: PKR 33mln), largely attributable to unrealized gains on investments, and increased to PKR 41mln by the end of 6MFY26. FCIL’s equity rose to PKR 307mln at the end of 6MFY26 (FY25: PKR 266mln), comfortably exceeding the minimum regulatory requirement.
 
 

Apr-26

www.pacra.com

First Capital Investments Limited

funds performance

(First Capital Investments Limited)

Logo
Sr. No. Fund Name Category Launch Date Weight (%) AUMs (PKR' mln) Return | Rolling 12 Months (Dec'25-Dec'24) Stability Rating/Performance Ranking
Dec-25 Sep-25 Jun-25 Mar-25 Return Benchmark Fund vs. Benchmark
Conventional Funds
1 First Capital Mutual Fund Equity 8-Jan-95 100% 231 238 183 183 26.2% 51.2% -48.8% 2 Star
Grand Total 100% 231 238 183 183

Apr-26

www.pacra.com

First Capital Investments Limited

rating scale

Logo

Apr-26

www.pacra.com

First Capital Investments Limited

regulatory disclosure

Logo
  1. Rating Team Statements
    1. Rating is just an opinion about the creditworthiness of the entity and does not constitute a recommendation to buy, hold, or sell any security of the entity rated or to buy, hold, or sell the security rated, as the case may be. (Chapter III; 14-3-(x))
    2. Conflict of Interest
      1. The Rating Team or any of their family members have no interest in this rating (Chapter III; 12-2-(j))
      2. PACRA, the analysts involved in the rating process, and members of its rating committee and their family members do not have any conflict of interest relating to the rating done by them (Chapter III; 12-2-(e) & (k))
      3. The analyst is not a substantial shareholder of the customer being rated by PACRA [Annexure F; d-(ii)]
      4. Explanation: for the purpose of the above clause, the term "family members" shall include only those family members who are dependent on the analyst and members of the rating committee.
  2. Restrictions
    1. No director, officer, or employee of PACRA communicates the information acquired by him for use for rating purposes to any other person, except where required under law to do so. (Chapter III; 10-(5))
    2. PACRA does not disclose or discuss with outside parties or make improper use of the non-public information which has come to its knowledge during a business relationship with the customer. (Chapter III; 10-7-(d))
    3. PACRA does not make proposals or recommendations regarding the activities of rated entities that could impact a credit rating of the entity subject to rating. (Chapter III; 10-7-(k))
  3. Conduct of Business
    1. PACRA fulfills its obligations in a fair, efficient, transparent, and ethical manner and renders high standards of services in performing its functions and obligations. (Chapter III; 11-A-(a))
    2. PACRA uses due care in the preparation of this Rating Report. Our information has been obtained from sources we consider to be reliable, but its accuracy or completeness is not guaranteed. PACRA does not, in every instance, independently verify or validate information received in the rating process or in preparing this Rating Report. (Clause 11-(A)(p))
    3. PACRA prohibits its employees and analysts from soliciting money, gifts, or favors from anyone with whom PACRA conducts business. (Chapter III; 11-A-(q))
    4. PACRA ensures before the commencement of the rating process that an analyst or employee has not had a recent employment or other significant business or personal relationship with the rated entity that may cause or may be perceived as causing a conflict of interest. (Chapter III; 11-A-(r))
    5. PACRA maintains the principle of integrity in seeking rating business. (Chapter III; 11-A-(u))
    6. PACRA promptly investigates in the event of misconduct or a breach of the policies, procedures, and controls, and takes appropriate steps to rectify any weaknesses to prevent any recurrence, along with suitable punitive action against the responsible employee(s). (Chapter III; 11-B-(m))
  4. Independence & Conflict of Interest
    1. PACRA receives compensation from the entity being rated or any third party for the rating services it offers. The receipt of this compensation has no influence on PACRA’s opinions or other analytical processes. In all instances, PACRA is committed to preserving the objectivity, integrity, and independence of its ratings. Our relationship is governed by two distinct mandates: i) rating mandate - signed with the entity being rated or issuer of the debt instrument, and ii) fee mandate - signed with the payer, which can be different from the entity.
    2. PACRA does not provide consultancy/advisory services or other services to any of its customers or their associated companies and associated undertakings that are being rated or have been rated by it during the preceding three years, unless it has an adequate mechanism in place ensuring that the provision of such services does not lead to a conflict of interest situation with its rating activities. (Chapter III; 12-2-(d))
    3. PACRA discloses that no shareholder directly or indirectly holding 10% or more of the share capital of PACRA also holds directly or indirectly 10% or more of the share capital of the entity which is subject to rating or the entity which issued the instrument subject to rating by PACRA. (Chapter III; 12-2-(f))
    4. PACRA ensures that the rating assigned to an entity or instrument is not affected by the existence of a business relationship between PACRA and the entity or any other party, or the non-existence of such a relationship. (Chapter III; 12-2-(i))
    5. PACRA ensures that the analysts or any of their family members shall not buy, sell, or engage in any transaction in any security which falls in the analyst’s area of primary analytical responsibility. This clause, however, does not apply to investments in securities through collective investment schemes. (Chapter III; 12-2-(l))
    6. PACRA has established policies and procedures governing investments and trading in securities by its employees and for monitoring the same to prevent insider trading, market manipulation, or any other market abuse. (Chapter III; 11-B-(g))
  5. Monitoring and Review
    1. PACRA monitors all the outstanding ratings continuously, and any potential change therein due to any event associated with the issuer, the security arrangement, the industry, etc., is disseminated to the market immediately and in an effective manner after appropriate consultation with the entity/issuer. (Chapter III; 17-(a))
    2. PACRA reviews all the outstanding ratings periodically on an annual basis. Provided that public dissemination of annual review and in an instance of change in rating will be made. (Chapter III; 17-(b))
    3. PACRA initiates an immediate review of the outstanding rating upon becoming aware of any information that may reasonably be expected to result in downgrading of the rating. (Chapter III; 17-(c))
    4. PACRA engages with the issuer and the debt securities trustee to remain updated on all information pertaining to the rating of the entity/instrument. (Chapter III; 17-(d))
  6. Probability of Default
    1. PACRA’s Rating Scale reflects the expectation of credit risk. The highest rating has the lowest relative likelihood of default (i.e., probability). PACRA’s transition studies capture the historical performance behavior of a specific rating notch. Transition behavior of the assigned rating can be obtained from PACRA’s Transition Study available at our website. (www.pacra.com) However, the actual transition of rating may not follow the pattern observed in the past. (Chapter III; 14-3(f)(vii))
  7. Proprietary Information
    1. All information contained herein is considered proprietary by PACRA. Hence, none of the information in this document can be copied or otherwise reproduced, stored, or disseminated in whole or in part in any form or by any means whatsoever by any person without PACRA’s prior written consent.

Apr-26

www.pacra.com