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PACRA Maintains Stability Rating of Lakson Income Fund

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November 30, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained stability rating of Lakson Income Fund at ‘A+(f)’ for long term, with a ‘stable’ outlook forecast.

According to the press release issued by PACRA, the rating reflects the fund's strong credit quality and good liquidity profile emanating from sizeable allocation of assets in daily cash balances. At end Jun-18, the portfolio comprised cash balances (70%) with majority of exposure with 'A-' rated banks (49%). Considering the remaining assets of the fund, ~6% were invested with TFCs and 5% with Sukuks. The unit holding pattern of the fund is highly concentrated with the top ten investors representing ~82% of portfolio making the fund vulnerable to redemption pressure.

Going forward, the fund intends to maintain exposure in cash, some part of investment in TFCs having good credit quality. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remain critical for the rating.

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Posted on: 2018-11-30T10:21:00+05:00

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