PACRA Maintains Stability Rating of Lakson Money Market Fund

The Lakson Money Market Fund (“the Fund”) is characterized as a low-risk money market collective investment scheme, engineered to provide competitive returns while emphasizing capital preservation through a high-quality portfolio of government securities and money market instruments. The Fund’s disciplined liquidity management framework and substantial sovereign allocation underpin its profile as a core cash management vehicle for a diversified investor base. As of June 30, 2025, the Fund reported Assets Under Management (AUM) of PKR 32.32 billion. The Fund is defensively positioned with a pronounced sovereign bias: a 62% allocation to Government of Pakistan (GoP) Treasury Bills (T-Bills) forms the core liquid exposure, complemented by a 33% allocation to bank placements which acts as a substantial immediate liquidity buffer. A 4% weighting in Pakistan Investment Bonds (PIBs) provides limited yield enhancement, with 1% held in other instruments. The Fund demonstrates a high credit quality profile, with 92% of assets allocated to high investment-grade categories, comprising 82% in ‘Government securities/AAA’ rated avenues and a further 16% in ‘AA+’ rated instruments. This significant allocation to the highest credit tiers provides a substantial buffer against default risk and underpins the Fund's stable return objective. The interest rate risk profile is conservative, with both the Weighted Average Maturity (WAM) and duration standing at 60 days. This short-term profile indicates minimal sensitivity to interest rate movements, ensures strong liquidity provisions for investor redemptions, and reflects a disciplined balance between yield capture and capital preservation. A key analytical consideration pertains to the Fund’s investor concentration, with the top investors collectively representing 53% of the AUM. While this indicates a degree of exposure to potential redemption events, the risk is largely mitigated by the Fund’s strong liquidity profile, comprising a 62% allocation to highly liquid T-Bills and 33% in readily accessible bank deposits, providing a strong 95% liquidity cushion to comfortably manage any redemption pressures.
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.