Pakistan Credit Rating Agency Limited maintains stability rating of Lakson Money Market Fund

Lahore, January 01, 2016 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the stability rating of Lakson Money Market Fund (LMMF), an open-end money market fund, at ‘AA (f)’ (Double A; fund rating). 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 rating reflects the fund’s low risk profile emanating from its portfolio allocation towards low risk avenues. At end-Sep15, government securities formed 37% of the fund’s net assets while remaining assets were placed with financial institutions having very strong credit quality (‘AA’ and above). The fund carries monthly average duration of 48 days at end-Sep15. Fund carries high redemption risk as the unit holding pattern of the fund is highly concentrated, with the top 10 investors representing 85% of the net assets.

Going forward, the rating remains dependent on maintaining at least 25% allocation towards government securities with portfolio duration not exceeding 90 days. Meanwhile, the remaining assets of the fund must be placed with scheduled banks having credit ratings ‘AA’ and above. PACRA would monitor compliance against agreed parameters on monthly average basis but ratings draw comfort from sizable investment of 44% from group.

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