The Pakistan Credit Rating Agency Limited
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Muhammad Usman

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PACRA Maintains Stability Rating of Lakson Money Market Fund

Rating Type Stability Rating
Action Maintain Maintain
Long Term AA(f) AA(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The objective of the fund is to provide stable and competitive returns in line with the money markets. At end Dec-17, fund's assets were invested as Cash (80%) with banks rated AAA and placements (19%) in AA+ Banks and NBFIs. In Dec 17, fund has duration of 10 days. On monthly average basis, the duration remained within the assigned parameters. The unit holding pattern of the fund is highly concentrated with top10 investors representing 77% of the fund's assets.
Going forward, the rating remains dependent on maintaining portfolio duration not exceeding 45 days. Meanwhile, the assets of the fund must be placed with minimum credit ratings AA+ and above.

About the Entity
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 16.7bln at end Dec-17 (PKR 14.1bln at end Dec-16). Additionally it is managing 46 SMAs mandates amounting to ~ PKR 13.2bln (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 nine departments consisting of Risk & Compliance, Investment, Research, Finance, Business Development, Marketing, IT, Operations and Admin.

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.