PACRA Maintains Asset Manager Rating of Lakson Investments Limited

Lakson Investments Limited (the "Company") is supported by a strong ownership and governance profile, which underpins its assigned rating. The Company is characterized by a well-defined organizational structure, rigorous risk management practices, seasoned leadership, and a suite of innovative products. Its investment process is systematic and tailored to address the needs of institutional and high-net-worth clients, resulting in a relatively lower emphasis on retail investments. The Company offers a diverse portfolio, including Private Funds, Separately Managed Accounts, and Open-Ended Funds, differentiating itself from other asset managers. According to management, the Company has applied for a VPS license, anticipating significant growth in Assets Under Management (AUM) over the next five years. As of the end of FY24, AUMs in Collective Investment Schemes (CIS) increased by 49.9%, reaching PKR 46.5 billion, up from PKR 31.0 billion in FY23. The Company's market share remained stable at 1.9% as of 9MFY24. Separately Managed Accounts expanded to PKR 103.3 billion by FY24, compared to PKR 87.5 billion in FY23. Specialized funds, such as the Private Equity Fund and Venture Capital Fund, have delivered strong performance. The Private Equity Fund, with a focus on healthcare, reported AUMs of PKR 4.2 billion as of FY24 and acquired a majority stake in OMI Hospital during its investment phase. The Venture Capital Fund, which invests in early-stage tech startups, had a portfolio valued at PKR 3.3 billion and has committed to multiple ventures through shareholder and SAFE agreements. The Company's flagship funds Lakson Money Market Fund (LMMF) and Lakson Equity Fund (LEF) have been top quartile performers in their respective peer groups over the last 3 years, reflecting the Company’s effective fund management capabilities. Meanwhile the Lakson Income Fund (LIF) AUM has increased by a massive 13.5x to PKR 7.8 billion and has generated a competitive return for unit holders. The Company also plans to advance its technological capabilities by developing an online portal to enhance account management, investment processing, conversions, and redemptions. Additionally, the rating reflects the Company’s affiliation with Lakson Group, a prominent Pakistani conglomerate with investments across various sectors. The rating is contingent on the Company’s ability to enhance its market position in AUMs, sustain superior fund performance, maintain a robust investment framework, and mitigate investor concentration risks
The rating depends on the company's ability to strengthen its market position in AUMs, maintain superior fund performance, and uphold a strong investment framework, while also reducing investor concentration.

About the Entity
Lakson Investments Limited was incorporated as an unlisted public company in 2008. The Company is a wholly owned subsidiary of Lakson Group, through its holding company SIZA Services (Private) Limited. Lakson Group was established in 1954 and is owned by the Lakhani family. It is among the leading business conglomerates in Pakistan with diverse interests spanning agribusiness, fast food, IT, financial services, media, manufacturing, packaging and surgical instruments. The CEO, Mr. Babar Ali Lakhani, possesses research and portfolio management experience with domestic and international institutions.
The control of the AMC vests in Board of Directors, chaired by Mr. Iqbal Ali Lakhani, who is also the chairman of the Lakson Group. The Company’s fund slate is composed of seven open-end funds belonging to all major categories. The total AUMs stood at PKR 157bln including PKR 103bln from advisory and PKR 7.5bln from private funds at end FY24. (FY23: PKR 125bln)