Lakson Money Market Fund

 

Fund Name

Lakson Money Market Fund

Asset Management Company

Lakson Investments Limited

Management Company Rating

Rated "AM3+" (AM three plus) by PACRA

Fund Type

An Open-End /Money Market

Investment Objectives

The investment objective of the Lakson Money Market Fund is to provide stable and competitive returns inline with the money markets, exhibiting low volatility consistent with capital preservation by constructing a liquid portfolio of low risk short term investments.

Investment Strategy

In order to achieve the investment objective, LMMF will invest in instruments having a maturity not more than six (6) months while maintaining the weighted average maturity of the portfolio at less than three (3) months. LMMF will invest only in those securities that have been assigned at least ‘AA’ rating by a rating agency in Pakistan. The Fund Management Team will conduct an in-depth credit analysis before taking any exposure to a counter party to mitigate the credit risk. The short maturity of the portfolio of LMMF (3 months) will protect the Unit Holders against medium and long term interest rate movements while enhancing the liquidity of LMMF.

 

OPERATIONAL DETAILS

Minimum Investment

Minimum investment amount is as low as PKR 5,000/- for Growth Units and PKR 100,000/-
for Income Units. Further re-investments can be made with as low as PKR 1,000/- only.

Types of Units

Growth Units & Income Units (for details please see OD)

Listing

LSE (Lahore Stock Exchange)

NAV (Net Asset Value) Calculation

Daily on all subscription days

Benchmark

Average of returns earned by Money Market Funds in the industry

Allotment of Units

On realization

Management Fee

The Management Company will charge a maximum fee of 1.25% p.a.

Load

None

Authorized Investments

LMMF is authorized to invest in the following instruments:

Instruments	Entity Rating	Instrument Rating	Max. Exposure
Government Securities: Treasury Bills and other short term Government Securities	-	-	100%
Deposits with Banks and Financial Institutions of maximum six (6) months maturity*	AA	AA	100%
Certificates of investment, musharaka, modaraba and deposit issued by Financial Institutions of maximum six (6) months maturity*	AA	AA	75%
Reverse Repo against Authorized Investments	-	-	50%
Money market placements with Banks and Financial Institutions including clean placements, letter of placements (LOP) of up to (6) months maturity*	AA	AA	75%
Commercial papers	AA	-	50%
Money market instruments issued, listed and traded outside Pakistan subject to regulatory approvals from the Commission and the State Bank of Pakistan	AA	AA	30%
Any other investment authorized by the Commission from time to time	AA or any other rating specified by the Commission.	AA or any other rating specified by the Commission.	50%

If Financial Institution is an NBFC or Modaraba then the entity / instrument rating should be at least ‘AAA’

 

SERVICE PROVIDERS

Trustee and Custodian

Central Depository Company of Pakistan Limited (CDC)

Auditors

KPMG Taseer hadi & Co

 

BENEFITS TO INVESTORS

No Load

No charges are applied at any time.

Competitive Returns

Through our diligent investment process, philosophy and reliance on fundamental based research, Lakson Funds shall strive to provide its unit-holders with competitive returns in compliance with the investment Objective.

Research

Our dedicated in-house research team plays critical role in making disciplined investment decision based on their
fundamental analysis taking into account changes in company fundamentals. Market trends, macro-economic changes, and shifts in fiscal and monetary policy.

Liquidity

Investors are able to invest and redeem to match their particular liquidity needs as and when they arise.

Easy Exit / Redemption

Lakson Investments strives to provide the facility of easy exit/redemption of units, however the constitutive document allows for upto six working days.

Diversification

All Lakson Funds strive to provide investors’ exposure to a truly diversified portfolio of instruments, thereby reducing the investors overall risk.

Tax Advantage

Under the applicable tax laws, investors in Mutual funds are exempt from Capital Gains Tax,  if investment is held for a period of one year,  while investments in bank deposits and other fixed income instruments (TFC’s, Treasury Bills, Sukuks, Commercial Paper, et. Al) are subject to taxation.

Tax Credit
An investment in any Lakson Fund will also allow an individual to lower what they pay in taxes. The applicable tax laws provide for tax credit incentive to salaried investors and self-employed investors.

The salaried investor can claim the tax credit (up to PKR 100,000 per year) and the self-employed investor can also avail themselves of the tax credit (up to PKR 125,000 per year).

Investors are advised to consult their tax advisor prior to making an investment decision.

Zakat
Exemption from Zakat on submission of required affidavit. (CZ-50)

 

Risk Disclaimer:

• This information has been prepared by Lakson Investments for your general information and private use only. It does not constitute investment advice and is not intended to be an offer to buy or sell or a solicitation of an offer to buy or sell any securities mentioned. It should not be considered as an incentive to invest. The securities described in this document may not be eligible for sale or subscription in all jurisdictions or to certain categories of investors. This document is not intended for distribution to a person or within a jurisdiction where such distribution would be restricted or illegal. This document may not be conveyed to or used by a third party without our express consent. Any other use is not authorized.
• The information contained herein has been obtained from sources believed to be reliable and no member of Lakson Investments makes any warranty, expressed or implied, as to the accuracy or completeness of the information. All the information included in this presentation is current when this document is prepared and subject to changes at any time. Any forecast or projection or forward looking statement made in this document is not necessarily indicative of future or likely performance, future events or future financial performance of securities, countries, markets or companies. Such statements are only predictions and actual events or results may differ.
• Lakson Investments may from time to time provide services to the companies and their affiliates mentioned herein. Employees of Lakson Investments or persons/entities connected to them may from time to time have position in or are holding any of the securities mentioned in this document.
• No consideration have been given to and no investigation was made of your investment objectives, financial situation or particulars, and accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of you acting on such information or opinion or estimate. Lakson Investments expressly disclaims any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on this the information in this document.
• You should consult your own legal, financial and other professional advisors, to ensure that any decision you make is suitable for you in the light of your circumstances and financial position.

 

 

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