The Pakistan Credit Rating Agency Limited
02-May-25
Analyst
Usama Ali
usama.ali@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of Lakson Income Fund
| Rating Type | Stability Rating | |
|
Current (02-May-25 ) |
Previous (28-Aug-24 ) |
|
| Action | Maintain | Maintain |
| Long Term | A+(f) | A+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Lakson Income Fund ('LIF' or the 'Fund') is characterized by a moderate risk profile Fund. Its goal is to deliver a competitive total return through investments in a diversified range of fixed income securities. The Fund's investments span short, medium, and long-term maturities, adjusted according to prevailing interest rate trends and anticipated returns. As of Dec'24, the Fund's assets under management (AUM) stood at PKR 14,955 million, reflecting a substantial increase of approximately 92% from PKR 7,786 million in June 2024. This impressive growth underscores the Fund's strong performance and growing investor confidence. The Fund majorly invested in Govt/AAA rated avenues (~79%), ~9% in AA+ whereas ~1% in A at the end Dec'24. The Fund had allocated ~39.70% in T-Bills, ~34.40% in PIBs, ~15.90% in Cash and the rest of the amount invested in others. At the end of Dec'24, the weighted average maturity of the Fund stood at 580 days, reflecting Funds' approach to pursue higher yield opportunity. The duration of the Fund stood at ~PKR 207 days. The Fund actively manages interest rate sensitivity to pursue yield opportunity. However, the risk is manageable due to investment in Government Securities.
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, 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, has over 23 years of investment and portfolio management experience in domestic and international equity and fixed income markets. The Chairman of the Lakson Group, Mr. Iqbal Ali Lakhani, is the chairman of Lakson Investment’s board. The asset under management of the company stood at ~198bln at the end of Dec'24.