The Pakistan Credit Rating Agency Limited
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Shahzaib Khalid

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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 rating reflects the fund's very strong credit quality, robust liquidity and low exposure to interest rate volatility. At end-Jun'19, 99% of fund's assets were placed with banks rated 'AAA' (~57%) and 'AA+' (~25%). The fund's duration and weighted average maturity stands at 1 day as at end-Jun'19. On monthly average basis, the duration remained within the assigned parameters. The unit holding pattern of the fund is highly concentrated with top ten investors representing 89% of the fund's assets.
Going forward, the rating remains dependent on maintaining strong credit profile and low duration. The assets of the fund must maintain minimum credit rating of 'AA' and above, while the duration should not exceed 45 days. Material changes in the fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.

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 four non-executives of group companies, one executive and three 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 15.8 billion at end-Sep'19, while the investment advisory portfolio has ~PKR 9.8 billion of assets under management at end-Sep'19.

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.