The Pakistan Credit Rating Agency Limited
09-Sep-21
Analyst
Muhammad Junaid
muhammad.junaid@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA
PACRA Maintains Stability Rating of Lakson Money Market Fund
| Rating Type | Stability Rating | |
|
Current (09-Sep-21 ) |
Previous (09-Mar-21 ) |
|
| Action | Maintain | Upgrade |
| Long Term | AA+(f) | AA+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Lakson Money Market Fund (or the 'Fund') is a low-risk profile fund. The Fund's rating reflects the very strong credit quality, robust liquidity, and low exposure to interest rate volatility. The Fund's investment policy dictates placing fund's assets with instruments having a maturity of fewer than six months and the weighted average maturity of the portfolio shall not exceed by three months. During FY21, the Fund's average duration was less than 45 days, reducing the Fund's exposure to interest rate risk. The Fund shall only place funds in banks rated 'AA' and above and non banking finance company rated 'AAA'. At end-Jun'21, ~96% of the Fund's assets were deposited with banks rated 'AA' or above. Fund's unit holding pattern is highly concentrated with top 10 investors representing ~69% of the net assets; however, due to the highly liquid nature of the Fund's assets, the Fund has an adequate ability to meet redemption pressure.
Going forward, following the investment policy and market expectations, the Fund will be maintaining its exposure in 'AA+' and higher-rated investment avenues. 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.
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 22,714mln at end- Jun'21.