PACRA Maintains Stability Rating of Lakson Income Fund

Lakson Income Fund (or the “Fund”) is a medium risk profile Fund. The objective of the Lakson Income Fund is to provide competitive total return through investment in a diversified portfolio of fixed income securities. Investments will be made in a variegated mix of short term, medium term and longer-term maturities depending on the interest rate trends and prospective returns. The AUMs of the Fund stood at PKR 4,752mln at the end Dec’23 (Jun’23: PKR 576mln). The Fund had allocated ~49.3% in T-Bills, ~16.7% in PIBs, ~8.2% in cash deposits, ~3.9% in TFCs whereas, ~21.8% in others at the end Dec’23. The credit quality of the Fund comprises of ~25% in Govt securities/AAA rated avenues, ~4% in AA+ rated avenues, ~1% in AA- rated avenues, ~5% in A+ rated avenues, and ~1% in A- rated avenues as of end Dec'23. The duration of the Fund stood at 137 days at the end Dec’23, limiting the interest rate risk. The WAM of the Fund stood at 482 days, exposing high credit risk, however ~49.3% is invested in Govt. Securities therefore the credit risk is manageable. The unit holding pattern of the fund was concentrated where ~76.53% were represented by top 10 investors, depicting high redemption pressure.
Going forward, the Fund intends to diversify its investment in A and above rated avenues and stabilize the Fund's performance. Compliance with the investment policy and rating criteria for the assigned rating would remain imperative.

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, over 23 years of investment and portfolio management experience in domestic and international equity and fixed income markets. The company’s control vests in a four-member board. 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 ~146.7bln in the end Dec'23