Karachi: The Management Company of Lakson Money Market Fund (LMMF) has reported a notable financial performance for the year ending June 30, 2024. According to information available from the Pakistan Stock Exchange (PSX), the fund generated a 22.61% return, surpassing the benchmark T-Bills yield of 7.70% by a significant margin. This year's performance marked an increase from last year's return of 22.49%, further solidifying the fund's position in a challenging economic landscape.

The fund's investment strategy has proven effective, with a weighted average maturity of the portfolio at 72 days and a sizeable fund size of PKR 31.865 billion. It has focused on high-quality securities with "AA" ratings, maintaining stringent risk management protocols to mitigate credit risks. Despite being allowed to borrow up to 15% of Net Assets for redemption purposes, the fund has maintained liquidity without fully utilizing this facility, showcasing robust financial health and operational prudence.

Economic Review and Outlook:

The year saw economic stabilization in Pakistan, facilitated by a USRs3 billion Stand-By Arrangement with the International Monetary Fund, which began in FY24. This assistance helped narrow the current account deficit, resulting in a much-needed fiscal breather. The Fund anticipates continued support from international donors, coupled with governmental policy reforms, to sustain economic stability and foster investment growth in the upcoming years.

Principal Risks:

The fund's management highlighted several risks, including economic instability, currency devaluation, and potential political unrest, which could influence financial markets and impact the fund's operations. However, the management remains vigilant and prepared to tackle these challenges to protect investor interests.

Acknowledgments:

The board expressed gratitude towards its stakeholders, including the Securities and Exchange Commission of Pakistan and the State Bank of Pakistan, for their ongoing support. The effective management of the fund has been recognized, contributing significantly to its success.