PACRA Maintains Asset Manager Rating of Lakson Investments Limited
Lahore, August 31, 2020 (PPI-OT): The rating incorporates well defined strategy of Lakson Investments Limited (the “Company”) to cater to the investment needs of institutional and high net worth investors. Strong ownership and governance profile provide support to the rating. The Company has well defined organizational structure, strong risk management framework, seasoned management team, innovative products and structured investment process. The Company has an adequate product slate. The fund mix has lately tilted towards money market category, in line with industry peers.
The Company is the only asset management company in Pakistan, which offers both domestic and internationally focused funds. The investor concentration at fund level remains high, an outcome of niche focused strategy of the Company. AUMs of the Company stood at PKR 18,909mln at end Jun’20 (Jun’19: PKR 15,609mln). However, the market share declined to ~2.4% at end Jun’20 (Jun’19: ~2.9%) as the industry grew at a faster pace. To augment its revenue stream, the Company is also offering specialized investment products which includes Separately Managed Accounts with adequate AUMs as compared to peers, Private Equity and Venture Capital fund management.
The overall fund’s performance of money market and fixed income funds remained satisfactory with majority funds meeting or exceeding industry average and benchmark. Equity and asset allocations fund lagged in terms of returns when compared to peers. The Company remained profitable during CY19 and has an adequate equity base. The rating incorporates the Company’s association with Lakson Group, a leading business conglomerates in Pakistan having investments in multiple sectors.
The rating is dependent on the Company’s ability to strengthen its market position in terms of AUMs, sustaining superior fund performance and upholding robust investment framework. Meanwhile, diluting investor concentration and successful execution of strategic initiatives is important.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425