Pakistan Credit Rating Agency maintains Stability Rating of Lakson Money Market Fund

Lahore, January 23, 2013 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the stability rating of the Lakson Money Market Fund (LMMF) at ‘AA (f)’ (Double A ; fund rating), an open-end money market fund. The fund’s rating denotes a very strong capacity to manage relative stability in returns and very low exposure to risks.

The investment policy of the fund is to earn reasonable rate of return by constructing a highly liquid portfolio of treasury bills, money market placements, and deposits with scheduled banks.

The fund’s very low risk profile emanates from its portfolio allocation, with government securities forming 83% of the fund’s net assets at end Sep-12. The remaining assets are placed as cash and TDRs with banks having very strong credit quality.

The fund carries a duration of 72 days at end Sep-12. The unit holding pattern of the fund is highly concentrated, with the top10 investors representing 83% of the net assets making the fund vulnerable to redemption pressure.

The fund’s rating is dependent on maintaining a highly liquid low-risk portfolio of government securities and bank balances. A minimum exposure of 25% in government securities is required, while the deposits have to be placed with ‘AA’ rated banks; the portfolio duration has to be less than 90 days.

For more information, contact:
Hammad Rashid
Analyst
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
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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