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PACRA retains First Capital Investments asset manager rating.

BANKING AND CREDIT NEWS-13 April 2010-PACRA retains First Capital Investments asset manager rating(C)1994-2010 M2 COMMUNICATIONS

13 April 2010 - The Pakistan Credit Rating Agency (PACRA) said it maintained the AM4+ asset manager rating assigned to local First Capital Investments Ltd (FCIL).

The rating denotes that FCIL meets adequate investments management industry standards and benchmarks.

The rating reflects FCIL's small but qualified management team, adequately structured investment process and association with a sound business group. After witnessing a significant drop in its assets under management owing to the subdued stock market performance, the company rationalised its cost structure by shifting some functions to the group head office. The rating incorporates the group support; however this has meant that FCIL is highly reliant on the group.

The rating is dependent upon the ability of the management to effectively execute the proposed strategy of diversification of the fund slate and growth in assets under management. Moreover, retaining and nurturing requisite human resource while continuously strengthening the core functions like risk management and IT functions is important. The continuous support from the group would also be imperative.

FCIL is registered as an Investment Advisor under Pakistan's Non-Banking Finance Companies (NBFC) Regulations. FCIL is sponsored by First Capital Securities Corp Ltd (KAR:FCSC), or FCSC, a First Capital group company, with a 77% shareholding. FCSC, an investment and financial services company, serves as the main holding company for the group. The group has interests in the financial, insurance, media and real estate sectors.

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Publication:M2 Banking & Credit News (BCN)
Date:Apr 13, 2010
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