PACRA Maintains Stability Rating of Lakson Money Market Fund : AsiaNet-Pakistan

PACRA Maintains Stability Rating of Lakson Money Market Fund

April 24, 2019 | General Business News | Share:

Lahore, April 24, 2019 (PPI-OT): The investment objective of the Lakson Money Fund is to provide stable and competitive returns in line with the money markets, exhibiting low volatility consistent with capital preservation by constructing a liquid portfolio of low risk short term investments.

At end Dec-18, fund’s assets were invested as Cash 83% and 17% as placements with banks rated ‘AAA’ (~17%) and ‘AA+’ (~74%). In Dec-18, fund has duration and weighted average maturity of 8 days. On monthly average basis, the duration remained within the assigned parameters. The unit holding pattern of the fund is highly concentrated with top ten investors representing 82% of the fund’s assets.

Going forward, the rating remains dependent on maintaining portfolio duration not exceeding 45 days. Meanwhile, the assets of the fund must be placed with minimum credit ratings AA and above. Material changes in the fund’s asset allocation strategy, which could negatively impact the fund’s credit quality and exposure to interest rate risk, remains critical for the rating.

For more information, contact:
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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Category: General Business News