PACRA Maintains Stability Rating of Lakson Income Fund
|Rating Type||Stability Rating|
The rating reflects the strength of the fund's credit and interest rate risk profile. At end Dec-19, 59% of fund's assets were placed with banks, remaining funds were invested in TFC (17%), Sukuk (7%) and commercial paper. Duration of the fund remained high at and Dec-19 (299 days), exposing it to interest rate risk. The unit holding pattern of the fund is highly concentrated with top ten investors representing ~94% of the fund's assets, which exposes the fund to high level of redemption pressure.
Going forward, the fund intends to take some exposure in PIBs to gain benefit from yield curve movements. Material changes in the fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.
Lakson Investments Limited, the investment management company of the Lakson Group, was incorporated on January 02, 2009 as an un-listed public company. It is licensed to undertake Asset Management and Investment Advisory 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 a venture capital fund along with conventional mutual funds and SMA products.
The company’s control vests in eight-member board, comprising four non-executives, one executive and three independent directors. The Chairman of the Lakson Group, Mr. Iqbal Ali Lakhani, is the chairman of Lakson Investment’s board. The Company is managing six open-end funds under five different categories with an aggregate AUM base of ~PKR 20.53 billion at end Dec-19.