PACRA Maintains Asset Manager Rating of Lakson Investments Limited
|Rating Type||Asset Manager|
The rating reflects Lakson Investments strong governance practices, robust risk management framework, and elaborate decision making process. The rating incorporates the company’s well though strategy of creating a niche in institutional and high net worth investor space. This should enable it to capture volumes in otherwise crowded asset management industry. It is approaching its target market through three streams a) Mutual Funds, b) SMA, and c) Private Equity. The management has concerted efforts towards effectively utilizing group's established brand coupled with sound operating platform and strengthened investor services. The company has successfully launched a Private Equity fund. The company has affiliated with a London based firm to enhance its risk management process. Lakson has strong research function which provides various analysis to support the fund management team to generate consistent fund performance. Although a source of concentration, group/family investment provides stability to AUMs.
The rating depends on the company’s ability to implement its strategy of building volumes (institutional & high net worth) without going deep into retail segment. While, strong and stable performance in SMAs and Mutual funds remain imperative. Given relative newness of Private Equity concept in Pakistan desire to acquire shareholding in companies for private equity fund is critical.
Incorporated in January 2009, Lakson Investments is the investment management arm of Lakson Group, wholly owned through Siza Services (Private) Limited. Lakson Group has interests in multiple sectors including agri-business, consumer non-durables, fast food, information technology, insurance, media, paper & packaging, surgical instruments, and travel. The company is currently managing six open-end funds - covering Equity, Money Market, Income and Asset Allocation categories - with assets under management of PKR 15.6bln at end Oct-17 (PKR 14bln at end Dec-16). Additionally it is managing 48 SMAs mandates amounting to ~ PKR 14bln (44 mandates and PKR 12.4bln at end Dec-16). Recently launched Private Equity fund with $ 25mln asset under management .
The eight-member BoD comprises four independent directors and four executives of group companies. The Chairman of Lakson Group, Mr. Iqbal Ali Lakhani, is the Chairman of Lakson Investment's board. The CEO, Mr. Babar Ali Lakhani, has vast investment management experience in local and foreign markets. Mr. Kashif Mustafa (COO), reporting directly to the CEO, is supported by ten departments consisting of Risk, Compliance, Investment, Research, Finance, Business Development, Marketing, IT, Operations and Admin.