PACRA Maintains Stability Rating of Lakson Islamic Money Market Fund

The Lakson Islamic Money Market Fund (“the Fund”) is characterized as a low-risk Shariah-compliant money market Fund, engineered to provide stable and competitive returns consistent with capital preservation through a liquid portfolio of low-risk, short-term Islamic investments. The Fund’s stringent adherence to Shariah principles and its ultra-short duration profile position it as a core cash management vehicle for investors seeking permissible income alternatives. As of June 30, 2025, the Fund reported Assets Under Management (AUM) of PKR 4.33 billion, reflecting its established presence within Pakistan’s Islamic liquidity market. The Fund maintains a diversified allocation across Shariah-compliant asset classes: a 40% weighting in Islamic bank placements forms the core liquidity buffer, 33% is allocated to Banks/Development Financial Institutions (DFIs) for yield enhancement, 13% to short-term Sukuks, and 10% to Government of Pakistan (GoP) Ijara Sukuks, which provide a sovereign credit anchor. The Fund demonstrates a high credit quality profile, with 86% of net assets allocated to investment-grade instruments rated ‘AA’ or better. This includes 48% in ‘AA’ rated avenues, 29% in direct Government securities or ‘AAA’ rated obligations, and 9% in ‘AA+’ rated avenues. This blended, high-grade credit allocation minimizes default risk while operating within a strict Shariah-compliant framework. The Fund maintains an exceptionally conservative risk profile with a 15-day Weighted Average Maturity. This near-cash structure provides immunity to interest rate changes and ensures strong daily liquidity. Minimal volatility supports the Fund’s capital preservation objective. The investor base is concentrated, with the top 10 investors holding 71% of AUM, posing redemption risk. However, strong liquidity through 40% Islamic bank placements and rapid asset maturities effectively mitigate this risk.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the rating.

About the Entity
Lakson Investments Limited (LIL), the premier investment management arm of the esteemed Lakson Group, was incorporated on January 02, 2009, as an unlisted public company. Licensed to provide Asset Management, Investment Advisory, and Private Fund Management services, LIL has distinguished itself as a forward-thinking financial institution with a diversified portfolio. A market pioneer, Lakson Investments is the only Asset Management Company (AMC) in Pakistan offering global market exposure through its Lakson Asset Allocation Developed Markets Fund. The company further strengthens its investment ecosystem by managing a private equity and venture capital fund, alongside a robust suite of mutual funds and separately managed accounts (SMAs). Under the leadership of Mr. Babar Ali Lakhani (CEO), a seasoned investment professional with over 23 years of experience in domestic and international equity and fixed income markets, LIL continues to drive strategic growth and portfolio excellence. The company is further guided by the visionary stewardship of Mr. Iqbal Ali Lakhani, Chairman of the Lakson Group, who also chairs Lakson Investments’ Board of Directors. As of June 2025, the company’s Assets Under Management (AUM) stood at an impressive ~PKR 187 billion, underscoring its strong market presence and investor confidence. Lakson Investments remains committed to innovation, prudent risk management, and value creation, reinforcing its position as a trusted leader in Pakistan’s asset management landscape.