Analyst
Muhammad Junaid
muhammad.junaid@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
PACRA Maintains Stability Rating of Lakson Income Fund
Rating Type | Stability Rating | |
Current (09-Mar-22 ) |
Previous (09-Sep-21 ) |
|
Action | Maintain | Maintain |
Long Term | A+(f) | A+(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
Lakson Income Fund (or the 'Fund') is a medium-risk profile fund. The assigned rating reflects the moderate strength of the Fund's credit and interest rate risk profile. According to the investment policy, at least 25% of the net assets shall be invested in cash and near cash instruments. At end-Dec'21, ~42% of Funds were deposited with 'A' and above rated banks. While 24% of the Fund's net assets were invested in TFCs rated 'A' and above. Whereas, the Fund also had an exposure of ~19% in government securities. The WAM of the Fund stood at ~3 years at end-Dec'21. The Fund's average duration was less than 45 days as of Dec'21, reducing the Fund's exposure to the interest rate risk. The unit holding pattern of the Fund is highly concentrated with the top ten investors representing ~95% of the Fund's assets, which may expose the Fund to redemption pressure.
Going forward, based on market expectations the Fund may increase its exposure in floating rate instruments and short tenor instruments. 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 unlisted public company. It is licensed to undertake Asset Management, Investment Advisory and Private Fund Management services. Lakson Investments is the only AMC, which offers exposure to international markets through Lakson Asset Allocation Developed Markets Fund. The Company is also managing a private equity and venture capital fund along with mutual funds and SMA products. Mr. Babar Ali Lakhani, CEO of the company, over 19 years of investment and portfolio management experience in domestic and international equity and fixed income markets.
The company’s control vests in a seven-member board, comprising four non-executives, 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 managing six open-end funds under five different categories with an aggregate AUM base of ~PKR 19,923mln at end- Dec'21.