PACRA Maintains the Stability Rating of Lakson Income Fund

Lakson Income Fund ("LIF" or "the Fund") is categorized under a medium-risk profile, with the objective of providing competitive total returns through investment in a diversified portfolio of fixed income securities spanning short, medium, and longer-term maturities. As of Dec'25, the Fund's Assets Under Management (AUM) stood at PKR 16,307mln, compared to PKR 14,826mln as of Jun'25 (the last review), reflecting a healthy growth of approximately PKR 1,481mln during the review period, indicative of sustained investor appetite for the Fund's diversified fixed income proposition. In terms of asset allocation, approximately 35% of the portfolio was invested in cash, 34% in Pakistan Investment Bonds (PIBs), 17% in Treasury Bills, 9% in placements with banks/DFIs, and the remainder in other eligible instruments, reflecting a well-diversified positioning across the yield curve with a meaningful duration tilt towards longer-tenor sovereign instruments. From a credit quality perspective, approximately 75% of the Fund's assets were invested in Government Securities and AAA rated instruments, while ~12% were placed in AA+ rated avenues, ~10% in A+ rated instruments, and the remainder in other exposures. This predominantly sovereign and investment-grade credit profile reflects the Fund's balanced approach of maintaining a strong quality anchor while selectively pursuing yield enhancement opportunities across the credit spectrum. The Fund's Weighted Average Maturity (WAM) stood at 635 days as of Dec'25, reflecting moderate-to-high sensitivity to interest rate movements. This relatively extended duration positioning, while introducing mark-to-market sensitivity, is consistent with the Fund's income-oriented strategy of capturing higher yields on longer-tenor instruments across varying market cycles. In terms of performance, the Fund reported an annualized one-year return of 12.98% as of Dec'25, against a benchmark return of 11.03%, reflecting a notable outperformance of approximately 195 basis points. This strong relative performance is attributable to the Fund's well-timed duration positioning in longer-tenor PIBs, which have benefited from the prevailing interest rate easing cycle.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the rating.

About the Entity
Lakson Investments Limited (LIL), the premier investment management arm of the esteemed Lakson Group, was incorporated on January 02, 2009, as an unlisted public company. Licensed to provide Asset Management, Investment Advisory, and Private Fund Management services, LIL has distinguished itself as a forward-thinking financial institution with a diversified portfolio. A market pioneer, Lakson Investments is the only Asset Management Company (AMC) in Pakistan offering global market exposure through its Lakson Asset Allocation Developed Markets Fund. The company further strengthens its investment ecosystem by managing a private equity and venture capital fund, alongside a robust suite of mutual funds and separately managed accounts (SMAs). Under the leadership of Mr. Babar Ali Lakhani (CEO), a seasoned investment professional with over 23 years of experience in domestic and international equity and fixed income markets, LIL continues to drive strategic growth and portfolio excellence. The company is further guided by the visionary stewardship of Mr. Iqbal Ali Lakhani, Chairman of the Lakson Group, who also chairs Lakson Investments’ Board of Directors. As of Dec 2025, the company’s Assets Under Management (AUM) stood at ~PKR 96 billion, underscoring its strong market presence and investor confidence. Lakson Investments remains committed to innovation, prudent risk management, and value creation, reinforcing its position as a trusted leader in Pakistan’s asset management landscape.