PACRA Maintains Asset Manager Rating of Lakson Investments Limited
|Rating Type||Asset Manager|
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.
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.