The Pakistan Credit Rating Agency Limited
11-Mar-24
Analyst
Madiha Sohail
madiha.sohail@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 (11-Mar-24 ) |
Previous (08-Sep-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 objective of the fund is to provide stable and competitive Shariah-compliant returns with low volatility that are in line with the Shariah-compliant money markets and consistent with capital preservation. Accordingly, the fund consists of a liquid portfolio of low-risk, short-term investments. The assigned 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. The AUMs of the Fund stood at PKR 2,044mln at the end of Dec’23 (Jun’23: PKR 3,988mln). The Fund had allocated ~86.5% in cash deposits, ~5.6% in Corporate Sukuks, and ~7.9% in others at the end of Dec’23. The credit quality of the fund comprises of ~23% in Govt securities/AAA-rated avenues, and ~69% in AA-rated avenues. The duration and the WAM of the Fund stood at 12 days, limiting the exposure to interest rate and credit risk. The unit holding pattern stood at ~83.3% representing top 10 investors concentration, depicting high redemption pressure.
Going forward, 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 23 years of investment and portfolio management experience in domestic and international equity and fixed income markets. The company’s control vests in a four-member board. 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 ~146.7bln at the end Dec'23