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Pakistan Credit Rating Agency maintains Rating of Lakson Money Market Fund

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by August 27, 2012 General

Lahore, August 27, 2012 (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.

LMMF primarily invests in treasury bills, money market placements, and deposits with scheduled banks with the objective of providing stable and competitive returns by constructing a highly liquid portfolio. The fund’s very low risk emanates from its investment mix, having exposure of 75% in Government securities (T-Bills) at end-Mar12.

The remaining assets are in form of deposits with banks carrying a minimum credit rating of AA. The fund carries a duration of 50 days at end-Mar12, in order to avoid volatility arising from interest rate fluctuations. However, the unit holding concentration remains high with top10 investors comprising ~78% of the fund’s net assets.

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 with “AA” category 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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