The Pakistan Credit Rating Agency Limited
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Madiha Sohail

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PACRA Maintains Stability Rating of Lakson Income Fund

Rating Type Stability Rating
(09-Sep-22 )
(09-Mar-22 )
Action Maintain Maintain
Long Term A+(f) A+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

Lakson Income Fund (or the 'Fund') is a medium-risk profile fund. The assigned rating reflects the moderate strength of the Fund's credit and interest rate risk profile. The Fund had allocated ~27% of its net assets to banks, mainly AAA rated banks, ~33% in TFCs rated AA+ or higher whereas ~23.5% in PIBs. The Fund has shifted its allocation to TFCs and PIBs resultantly, the duration of the Fund increased to 75 days (Dec-21: 35days) and the WAM increased to 1,444 days at the end Jun-22 (Dec’21: 1,124 days). The unit holding pattern of the Fund was highly concentrated where ~78% were represented by top 10 investors.
Going forward, based on market expectations the Fund may increase its exposure in floating rate instruments and short tenor instruments. Material changes in the Fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect 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, over 19 years of investment and portfolio management experience in domestic and international equity and fixed income markets.
The company’s control vests in a six-member board, comprising three non-executives, one executive, and two independent directors. 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 ~25bln in the end Jun-22

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