The Pakistan Credit Rating Agency Limited
08-Sep-23
Analyst
Wajeeha Asghar
wajeeha.asghar@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of Lakson Income Fund
| Rating Type | Stability Rating | |
|
Current (08-Sep-23 ) |
Previous (06-Mar-23 ) |
|
| Action | Maintain | Maintain |
| Long Term | A+(f) | A+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | Yes | Yes |
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 576mln at end Jun’23 (Dec’22: PKR 668mln). The Allocation of the Fund as of Jun'23 was ~56% in TFCs, around ~33% in T-Bills. However, ~4% cash in bank majority rated AA+. The duration of the Fund stood at 86 days at the end Jun’23, exposing moderate interest rate risk. The WAM of the Fund stood at 1,118 days, exposing the high credit risk due to long term investment in TFCs. The unit holding pattern of the fund stood at ~91.7%, representing top 10 investors concentration. As per the assigned rating criteria, the Fund need to remain compliant to the specified criteria by investing maximum 25% in A rated avenues.
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 ~125bln in the end Jun'23