The Pakistan Credit Rating Agency Limited
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Madiha Sohail

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PACRA Maintains Stability Rating of Lakson Money Market Fund

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

Lakson Money Market Fund (or the “Fund”) is low risk profile Fund. The Fund's rating reflects the very strong credit quality, high liquidity, and low exposure to interest rate volatility. The Fund had allocated 96% of its net assets in two different AAA rated banks, ~2% in CP rated AA and above. The WAM and duration of the Fund remained same at ~4 days, limiting interest rate. The Fund's unit holding pattern is highly concentrated with top 10 investors representing ~60% of the net assets. Due to the highly liquid nature of the Fund's assets, the Fund has an adequate ability to meet redemption pressure.
Going forward, 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

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.