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 Money Market Fund
| Rating Type | Stability Rating | |
|
Current (02-May-25 ) |
Previous (28-Aug-24 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA+(f) | AA+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Lakson Money Market Fund ('LMMF' or the 'Fund') is classified as a low-risk Fund. Its objective is to deliver stable and competitive returns in line with money markets, while maintaining low volatility and prioritizing capital preservation through a liquid portfolio of short-term, high-quality investments. The Fund's rating reflects its conservative credit profile and investment strategy focused on highly liquid and low-risk assets. As of Dec'24, the Fund's assets under management (AUM) reached PKR 51,929 million, representing a significant increase of approximately 63% from PKR 31,865 million in June 2024. This growth highlights the Fund's strong performance and growing investor confidence. The portfolio allocation at the end of Dec'24 was as follows: 48.60% in T-Bills, ~13.20% in PIBs, ~11.30% in Cash and the rest of the amount invested in others. The credit quality of the Fund comprises ~88% in Govt/AAA rated, ~10% in AA+ whereas ~1% in AA at the end Dec'24. The Fund's weighted average maturity stood at 62 days. To manage any outflows the Fund has maintained sufficient liquidity through investments in short-term 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 total asset under management of the company stood at ~198bln at the end of Dec'24.