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The Pakistan Credit Rating Agency Limited
Press Release

Date
27-Feb-19

Analyst
Shahzaib Khalid
shahzaib.khalid@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Asset Manager Rating of Lakson Investments Limited

Rating Type Asset Manager
Current
(27-Feb-19)
Previous
(28-Aug-18)
Action Maintain Maintain
AM Rating AM2+ AM2+
Outlook Stable Stable
Rating Watch - -

The rating reflects sound profile of the sponsor, Lakson Group, which is one of the leading business conglomerates of Pakistan. The rating takes into account the strong corporate governance framework and risk management practices, seasoned management team, consistent funds’ performance and growing market share, currently at ~3.4%. Sizable growth has been witnessed in the separately managed accounts in CY18 which provides support to the revenue. The rating also incorporates the company’s high top ten investor concentration, in line with its focus on institutional investors.

The rating takes into account company’s ongoing efforts to diversify its revenue stream. In this regard, the company has launched a private equity fund in Oct-18 with primary focus on healthcare sector. The company plans to launch a venture capital fund as well, which would provide further revenue diversification. Dedicated team of qualified individuals is build to lead the private equity and venture capital funds.

The rating is dependent upon upholding high governance standards, strong control environment, enhancement in competitive position by gaining further in terms of assets under management, dilution in investment concentration and maintaining strong funds’ performance.

About the Entity
Lakson Investments Limited, the investment management company of the Lakson Group, was incorporated on January 02, 2009 as an un-listed public company. It is licensed to undertake Asset Management and investment advisory services. The company has recently acquired the license to launch private equity and venture capital funds. The company’s control vests in eight-member board, comprising three non-executives of group companies, one executive and four independent directors. The Chairman of the Lakson Group, Mr. Iqbal Ali Lakhani, is the chairman of Lakson Investment’s board. The company is currently managing six open-end funds in diversified categories with an aggregate AUM base of ~PKR 19.6 billion at end Dec-18. The investment advisory portfolio has ~PKR 12.2 bln assets under management at end Sep-18.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.