The Pakistan Credit Rating Agency Limited
28-Aug-24
Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of Lakson Islamic Money Market Fund | RW Assign
| Rating Type | Stability Rating | |
|
Current (28-Aug-24 ) |
Previous (11-Mar-24 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA(f) | AA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | Yes | - |
Lakson Islamic Money Market Fund (the “Fund”) is a low-risk fund. Its objective is to deliver stable and competitive Shariah-compliant returns with minimal volatility, aligning with Shariah-compliant money markets while prioritizing capital preservation. To achieve this, the Fund maintains a liquid portfolio of low-risk, high quality short-term investments. The assigned rating reflects the Fund’s conservative credit risk profile and investment strategy focused on liquid Shariah-compliant assets. As of June 2024, the Fund’s assets under management (AUM) were PKR 1,584 million, down from PKR 3,988 million in June 2023. The portfolio allocation at the end of June 2024 was as follows: 49.2% cash, 31.3% placements, 15.7% corporate Sukuks, and 3.8% in others. The credit quality of the Fund includes 56.0% AA and 40.0% in AA+ rated avenues. The Fund’s duration and weighted average maturity (WAM) are 40 days.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on 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, has 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 total asset under management of the company stood at ~157bln at the of end Jun'24.