Lahore, August 29, 2022 (PPI-OT):The rating incorporates the well-defined strategy of Lakson Investments Limited (the “Company”) to cater to the investment needs of institutional and high net worth investors. A strong ownership and governance profile provides support to the rating. The Company has a well-defined organizational structure, strong risk management framework, seasoned management team, innovative products and a structured investment process. The Company has a diversified product slate comprising CIS, SMA and PE/VC which distinguishes it from other AMCs.
The fund mix has tilted towards money market category, in line with industry peers. Lakson Investments Limited is the only asset manager in Pakistan, which offers both domestic and internationally focused funds. The investor concentration at fund level decreased to 44% at end-Jun’22 from 72% at end-Jun’21. The AUMs in terms of CIS witnessed a growth of 11.5% to stand at PKR 25.3bln at end-Jun’22 (Jun’21: PKR 22.7bln). However, the market share declined to 2.0% at end-Jun’22 (Jun’21: 2.2%) as the industry grew at a faster pace.
To augment its revenue stream, the Company is offering specialized investment products which includes Separately Managed Accounts with AUMs of PKR 9,461mln at end Jun’22 (Jun’21: PKR 11,110mln). The Private Equity and Venture Capital Funds are 100% drawdown and have a combined size of PKR 3.6bln out of which PKR 2.3bln pertains to PE and PKR 1.3bln to VC. The overall performance of the money market, income and equity funds remained competitive and exceeded the industry averages. The Company remained profitable during the review period and has an adequate equity base. The rating incorporates the Company’s association with Lakson Group, a leading business conglomerate 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,