The Pakistan Credit Rating Agency Limited
27-Jun-23
Analyst
Wajeeha Asghar
wajeeha.asghar@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of Lakson Islamic Money Market Fund
| Rating Type | Stability Rating | |
|
Current (27-Jun-23 ) |
Previous (06-Mar-23 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA(f) | AA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Lakson Islamic Money Market Fund (or the "Fund") reflects the low risk profile Fund. The assigned rating rating reflects the Fund's low credit risk profile emanating from the Fund's investment policy to invest in strong credit quality investment avenues with sound liquidity. Currently, the Fund had allocated ~61% cash in single bank rated double AA, ~28% in placements/DFIs rated double AA+. Whereas, ~10% in Corporate Sukuks rated double AA and ~2% in others at the end Mar’23. The duration and the WAM of the Fund stood at 14 days, limiting the exposure to interest rate and credit risk. The top ten investor concentration of the Fund stood at ~88.8% as end Mar'23, the majority is invested by HNWIs.
Going forward, the Fund intended to invest a minimum 25% in Govt/AAA rated avenues while complying the rating criteria for the assigned rating. Any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the rating.
About
the Entity
Lakson Investments Limited, the investment management company of the Lakson Group, was incorporated on January 02, 2009, as an unlisted public company. It is licensed to undertake Asset Management, Investment Advisory and Private Fund Management services. Lakson Investments is the only AMC, which offers exposure to international markets through Lakson Asset Allocation Developed Markets Fund. The Company is also managing a private equity and venture capital fund along with mutual funds and SMA products. Mr. Babar Ali Lakhani, CEO of the company, over 19 years of investment and portfolio management experience in domestic and international equity and fixed income markets.
The company’s control vests in a six-member board, comprising three non-executives, one executive, and two independent directors. The Chairman of the Lakson Group, Mr. Iqbal Ali Lakhani, is the chairman of Lakson Investment’s board. The total asset under management of the company stood at ~113bln at the end Mar'23