The Pakistan Credit Rating Agency Limited
06-Sep-22
Analyst
Wajeeha Asghar
wajeeha.asghar@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Assigns Initial Stability Rating to Lakson Islamic Money Market Fund
| Rating Type | Stability Rating | |
|
Current (06-Sep-22 ) |
||
| Action | Initial | |
| Long Term | AA(f) | |
| Short Term | - | |
| Outlook | Stable | |
| Rating Watch | - | |
Lakson Investments Limited (LIL) is in the process to launch the "Fund" in order to strengthen its relative position in the Islamic money market category. Lakson Islamic Money Market Fund (or the "fund") would be an open-ended fund, managed by Lakson Investment Limited (LIL). The objective of the Lakson Islamic Money Market Fund (or the “Fund”) is a long-term capital appreciation by investing in Shariah Compliant avenues. The initial Fund's size is expected to be PKR ~1.5bln-2bln. The 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 Investment Policy of the Fund restricts exposure in below "AA' rated avenues. The duration of the Fund would be capped at 90 days. The Fund would remain invested at least 25% in Govt Securities/AAA rated avenues,
Going forward, the Fund strategy represents high liquidity and low risk profile, which bodes well to the rating. this would remain imperative to the rating. Any breach of investment policy is considered negative.
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 Company is managing six open-end funds under five different categories with an aggregate AUM base of ~PKR 25bln at end- Jun'22.