Lahore, January 01, 2016 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the stability rating of Lakson Income Fund (LIF), an open-end income fund, at ‘A+'(f) (Single A Plus ; fund rating). The fund’s rating denotes a strong capacity to manage relative stability in returns and low exposure to risks. The fund’s mandate is to earn a reasonable rate of return by investing in a diversified portfolio of government securities and low risk short term debt investments.
The rating incorporates the fund’s strong credit quality and sound liquidity profile, emanating from the fund’s current portfolio composition. At end-Sep15, the net assets of the fund largely comprised government securities (PIBs: 35%, T-bills: 12%). The remainder of assets were invested in high rated TFCs (‘AA’ and above – 6%) from the financial and Corporate sector along with cash and placements with good quality commercial banks. The unit holding pattern of the fund is highly concentrated with the top10 investors representing 81% of the fund’s assets. The higher unit holder concentration keeps the fund to redemption pressure.
Going forward, the fund intends to maintain its investments government securities (PIBs and T-bills) and increase exposure in good quality debt instruments. Material changes in the fund’s asset allocation strategy; including change in TFCs mix towards low rated instruments, which could negatively impact the fund’s credit, remains critical for the rating.
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