PACRA Maintains Stability Rating of Lakson Money Market Fund
|Rating Type||Stability Rating|
The investment objective of the lakson Money Fund is to provide stable and competitive returns in line with the money markets, exhibiting low volatility consistent with capital preservation by constructing a liquid portfolio of low risk short term investments.
At end Dec-18, fund's assets were invested as Cash 83% and 17% as placements with banks rated 'AAA' (~17%) and 'AA+' (~74%). In Dec-18, fund has duration and weighted average maturity of 8 days. 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 82% 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. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remains critical for the rating.
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 billion assets under management at end Sep-18.