PACRA Maintains Asset Manager Rating of Lakson Investments Limited
|Rating Type||Asset Manager|
The rating incorporates well defined strategy of Lakson Investments Limited (the "Company") to cater to the investment needs of institutional and high net worth investors. Strong ownership and governance profile provide support to the rating. The Company has well defined organizational structure, strong risk management framework, seasoned management team, innovative products and structured investment process. The Company has an adequate product slate. The fund mix has lately tilted towards money market category, in line with industry peers. The Company is the only asset management company in Pakistan, which offers both domestic and internationally focused funds. The investor concentration at fund level remains high, an outcome of niche focused strategy of the Company. AUMs of the Company stood at PKR 18,909mln at end Jun'20 (Jun'19: PKR 15,609mln). However, the market share declined to ~2.4% at end Jun'20 (Jun'19: ~2.9%) as the industry grew at a faster pace. To augment its revenue stream, the Company is also offering specialized investment products which includes Separately Manged Accounts with adequate AUMs as compared to peers, Private Equity and Venture Capital fund management. The overall fund's performance of money market and fixed income funds remained satisfactory with majority funds meeting or exceeding industry average and benchmark. Equity and asset allocations fund lagged in terms of returns when compared to peers. The Company remained profitable during CY19 and has an adequate equity base. The rating incorporates the Company's association with Lakson Group, a leading business conglomerates in Pakistan having investments in multiple sectors.
The rating is dependent on the Company’s ability to strengthen its market position in terms of AUMs, sustaining superior fund performance and upholding robust investment framework. Meanwhile, diluting investor concentration and successful execution of strategic initiatives is important.
Lakson Investments Limited (the "Company") was incorporated as an unlisted public company in 2008. The Company is a wholly owned subsidiary of Lakson Group, through its holding company SIZA Services (Private) Limited. Lakson Group was established in 1954 and is owned by Lakhani family. It is among the leading business conglomerates in Pakistan and has interests in multiple sectors, including agri-business, consumer non-durables, fast food, information technology, financial services, media, paper and board manufacturing, printing and packaging, surgical instruments and travel. The CEO, Mr. Babar Ali Lakhani, possesses research and portfolio management experience with domestic and international institutions. Mr. Kashif Mustafa, Executive Director and COO has more than a decade's experience of capital markets with local and international brokerage houses and leading asset management companies.
The control of the Company vests in eight member board of directors, chaired by Mr. Iqbal Ali Lakhani, who is also the chairman of the Lakson Group. There are three independent, four non-executive directors and one executive director on the board. The company’s fund slate is composed of six open-end funds belonging to all major categories which includes asset allocation, equity, income, Shariah Compliant asset allocation and money market.