Lucky Investments Limited

RATING REPORT | Mar-26

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Rating History
Dissemination Date Rating Outlook Action Rating Watch
03-Mar-26 AM2++ Stable Upgrade -
11-Aug-25 AM2+ Stable Upgrade -
25-Apr-25 AM2 Positive Initial -
About the Entity

Lucky Investments Limited holds licenses from the SECP to operate as a Non-Banking Finance Company (NBFC), authorized to provide both asset management and investment advisory services. Currently, the AMC is owned (70%) by YB Pakistan, while the remaining 30% is held by Mr. Muhammad Shoaib, CFA who is a seasoned professional with over 35 years of capital markets experience. The seven member Board of the AMC is chaired by Mr. Muhammad Ali Tabba, who is well known in the market for his towering successes as an entrepreneur and businessman.

Rating Rationale

The rating of Lucky Investments Limited (“Lucky Investments” or the “AMC”) reflects its experienced and visionary leadership, along with strong sponsor support. The current rating upgrade considers the sustained growth in AUMs, increased market share, expansion of the product suite, and advancement in digital capabilities. Strategic geographic expansion and improved profitability achieved within a short operational history also bode well for the assigned rating. The AMC is operating as a full-fledged Islamic asset management company. Lucky Investments is fast becoming a premier choice for Shariah-Compliant investments, aiming for sustainable growth with integrity and innovation. The AMC demonstrated significant growth in its Assets Under Management (AUMs), which reached PKR 131 billion since the launch of its inaugural fund in April 2025, marking an overall increase of approximately 126%. As of Dec'2025, the AMC captured around 3% market share of the total asset management industry (FY25: 2%), while its share in the Islamic asset management segment improved to 6% (FY25: 3.8%). Its flagship offering, the Lucky Islamic Money Market Fund, accounts for approximately 43% of the total AUMs of the AMC, followed by the Lucky Islamic Income Fund. The AMC has acquired the VPS license and launched its first Islamic Pension Fund in Nov’25. It is actively diversifying its product portfolio by working on Pakistan’s first ESG-focused fund, a Capital Protected Fund, and obtaining an RMC (REIT Management Company) license to launch a REIT Fund. The AMC’s client base currently comprises approximately 85% institutional and 15% retail investors(including HNWIs) as of Dec'25. Management intends to gradually increase retail participation in line with its long-term growth strategy by establishing a dedicated retail team and strengthening and leveraging distribution partnerships. Lucky Investments is pursuing a phased geographic expansion strategy, with its Lahore office operational and additional presence planned in Islamabad, Peshawar, and Karachi to strengthen distribution reach and support retail penetration. The top ten investor concentration would also dilute. To enhance outreach and broaden its customer base, the AMC is advancing digital initiatives designed to improve client accessibility and interaction. As part of this effort, the AMC introduced its mobile application in Dec’25, facilitating digital onboarding and end-to-end transaction execution. On the financial side, profit after tax of AMC stood at PKR 91mln at the end of 6MFY26 (3QFY25: PKR 20mln), primarily due to an increase in fee and commission income. The equity of the AMC stood at PKR 604mln at the 6MFY26 (3QFY25: PKR 508mln). The sponsors have instituted a sound governance framework, where their own presence on the Board and Committees lends much-needed and desired confidence in the AMC. The AMC is benefiting from its relationships across the corporate and financial spectrum of the economy. The management team is well entrenched in the market and known for its previous track record of success. The focus of the management is to lay a strong foundation, which will play a fundamental role in the future performance of the entity. Many of the actions that the management has taken reflect their aptitude towards professionalism, higher industry standards, and innovation. This is unlocking sustained growth for the AMC.

Key Rating Drivers

The rating depends on the AMC's ability to strengthen its market position regarding AUMs, sustain superior fund performance, strategic branch expansion, and strengthen profitability. Continued improvement in investor granularity remains important, while deeper retail penetration through digital channels is expected to provide further support.

REPORT CONTENTS
  1. Rating Analysis
  2. Financial Summary
  3. Rating Scale
  4. Regulatory Disclosure

Lucky Investments Limited

rating analysis

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Profile
Structure

Lucky Investments Limited ("Lucky Investments" or the “AMC”) is a public unlisted Non-Banking Finance Company (NBFC) licensed by the SECP, authorized to provide both asset management and investment advisory services. Additionally, the AMC has also acquired Pension Fund Manager license. Positioned as an emerging player in Pakistan’s Shariah-compliant asset management landscape, the AMC is steadily expanding its footprint in the industry.


Background

Lucky Group acquired erstwhile Interloop Asset Management Limited back in Dec 2024 and renamed it as Lucky Investments Limited. This acquisition reflects the Group’s strategic entry into the Islamic Capital Markets, aligning with the growing demand for Shariah-Compliant investment solutions.


Market Share

As of Dec'2025, the AMC captured around 3% market share of the total asset management industry (FY25: 2%), while its share in the Islamic asset management segment improved to 6% (FY25: 3.8%).


Diversification of Fund Mix

Within a relatively short operational horizon, Lucky Investments Limited has established a well-diversified and strategically aligned product suite spanning money market, income, equity, fixed-term solutions reflecting both breadth and depth within the Islamic asset management space. The AMC has launched its first Islamic pension fund in Nov'25. To further diversify its product suite, the AMC’s pipeline comprising an ESG Fund, Government-focused VPS solutions, and a Capital Protected Fund reflecting its innovation-driven strategy. This expansion beyond traditional mutual funds is expected to enhance earnings stability, expand market presence, and support sustainable long-term growth.



Investor Concentration

As of Dec'25, the top 10 investor concentration account for ~87% of the total AUMs.


Ownership
Ownership Structure

The major shareholder of the AMC is Yunus Brothers (YB) Pakistan which holds 70% of the stake while the remaining 30% shares are owned by the Mr. Muhammad Shoaib.


Business Acumen

Lucky Group is one of Pakistan's largest business conglomerates, with a strong presence in cement, textile, automobile, chemicals, healthcare, and power generation, reflecting the sponsors' exceptional business acumen and strategic execution. Mr. Mohammad Shoaib has over 36 years of experience in capital markets and was the Founding CEO of Al Meezan Investment Management Limited.


Financial Strength

The sponsors of the AMC hold the muscles to extend financial support to the AMC. In case further support is needed, there is a high propensity to provide the same.


Governance
Board Structure

The AMC’s Board consists of seven members, including the Chairperson and CEO. The Board comprises of four non-executives, two independent directors and one executive director.


Members’ Profile

The BOD members have extensive experience of various business and financial sectors of the economy. Mr. Muhammad Ali Tabba - Chairperson joined Yunus Brothers Group (YBG) in 1991. Additionally, he chairs YB Holding Group, Lucky Motors Corporation, and serves as Vice Chairperson of Lucky Core Industries Limited, enhancing Company success with strategic acumen. Mr. Jawed Yunus Tabba - Non Executive Director is also CEO of Lucky Textile Mills Limited, has led the Company among Pakistan’s leading home textile exporters and provides strategic guidance to Lucky Cement, Gadoon Textile Mills, and renewable energy ventures. Mr. Muhammad Ruhail - Non Executive Director has over 35 years of leadership experience across chemicals and energy sectors and currently serves as CEO of Lucky Electric Power Company Limited. Previously, he was CEO of Hub Power Holdings Limited. Ms. Zeeba Ansar - Independent Director brings over 28 years of experience in private and corporate banking. She serves on the boards of Gul Ahmed Textile Mills, Cherat Cement, and Samba Bank, and has previously worked with Deutsche Bank, Faysal Bank and UBL. Mr. Khurram Rahat - Independent Director has over 33 years of experience across consulting, analytics, sales, and senior management, with operational exposure in multiple international markets. He also serves as a senior business consultant at Kredible Consulting. Mr. Muhammad Arsalan - Non Executive Director works as Co-Founder and CEO at Youniform. He is also a Director at Vidan.AI. He has extensive experience in management at various organizations. He is a CFA Charter Holder and Holds a Bachelor degree in Commerce from McGill University.


Board Effectiveness

To ensure its effectiveness, the Board has formulated the audit, HR and compensation committee and risk and compliance committees. The governance framework provides comfort to the investors of the AMC.


Transparency

The AMC's auditor is Yousuf Adil & Co., the internal audit function is outsourced to BDO Ebrahim & Co., and the Funds’ auditor is A.F. Ferguson & Co., rated ‘A’ by SBP with a satisfactory QCR from ICAP.


Management
Organizational Structure

The organizational structure is well-aligned with the AMC’s operational framework, comprising six core departments including investement management department, sales department, information technology, compliance and risk management, markeing department, finance & HR department each with clearly defined roles and responsibilities.


Management Team

The senior management team of the AMC comprises qualified and experienced professionals. Mr. Mohammad Shoaib - CEO and Co- Founder of Lucky Investments Limited, has 35 years of experience in capital markets and was the Founder CEO of Al Meezan Investment Management Limited. He has to his credit being the Founder CEO of Al Meezan Investment Management Limited as well as CFA Society Pakistan. Mr. Nabeel Malik - Chief Investment & Strategy Officer brings over 20 years of expertise in financial markets, specializing in strategic planning, leadership, and corporate governance. Prior to joining Lucky Investments, he was associated with Alfalah Investments, IGI Funds, Pak Oman Asset Management and others. Throughout his career, Mr. Malik has held key leadership roles, including Senior Fund Manager, Head of Investments, Chief Investment Officer, and Acting CEO. Mr. Umair Ahmed – Chief Operating & Financial Officer joined Lucky Investments Limited as COO, CFO and Company Secretary. Prior to joining Lucky Investments, he was associated with UBL Fund Managers limited and MCB Funds. He has an overall work experience of over 15 years in mutual fund industry in various senior leadership roles.


Technology Infrastructure

Recognizing the rapidly evolving distribution landscape, Lucky Investments has launched a fully functional online portal and recently introduced a mobile application enabling digital onboarding, end-to-end transaction processing, portfolio access and statements, and seamless investor interaction. The AMC has outsourced back-office functions to IT Minds Limited and plans to acquire back and front office system by the end of CY26.


Control Environment

The AMC ensures strong regulatory compliance through regular Shariah audits, transparent reporting, and strict AML/KYC controls, overseen by Mr. Muhammad Aafaq, Head of Compliance and Risk, who brings experience from multiple AMCs including Faysal, Al Meezan etc. The independent Risk & Compliance function reports directly to the Board Risk & Compliance Committee. Investment decisions are reviewed for regulatory, exposure, and Shariah compliance, while ongoing monitoring tracks portfolio risks and escalates any breaches promptly to senior management and the Committee, ensuring effective oversight.


Investment Risk Management
Credit Risk

The AMC is actively preparing risk-adjusted investment strategies to optimize returns and set up independent risk committees to oversee fund performance.


Liquidity Profile

The AMC maintains a liquidity buffer through investments in Islamic Money Market instruments. Furthermore, it seeks to build a diversified investor base to mitigate concentration risk arising from potential redemptions.


Market Risk

The AMC diversified its portfolio across Sukuk, Islamic equities, and fixed-income funds, while maintaining liquidity to manage market shocks. It also launched low-risk Islamic fixed-income options and plan to implement stress-testing models to address potential economic challenges.


Portfolio Management
IC Composition

The investment committee (IC) comprises the CEO, Chief Investment and Strategy Officer, Head of Research, Head of Fixed Income, Head of Equities and Head of Compliance/Risk.


Effectiveness

The IC comprises of qualified and experienced professionals to review the investment strategy of each fund and its performance to incorporate impact of market circumstances on funds’ performance.


Investment Research and Analysis

M. Saad Ali, Head of Research, has over 14 years of work experience in the capital market of Pakistan. A team of 3–4 research analysts is engaged, with a primary focus on the energy, cement, pharmaceutical, and automobile sectors initially. Research activities are carried out using Excel based tools and analytical models.


Customer Relationship
Investor Services

The AMC focuses on quality service through active investor engagement and IT integration. Following the launch of the mobile application, the AMC intends to integrate additional customer-centric platforms, including a WhatsApp chatbot, robo-advisory solutions, and AI-driven chat support, to provide real-time assistance along with automated reporting and alerts.


Investor Reporting

The AMC provides monthly unit holder statements outlining investment value and asset allocation, and also publish FMRs and annual reports on its website, offering detailed insights into portfolio performance, strategy, risk-adjusted returns, and market conditions.


Distribution and Sales Network

The AMC has adopted a distribution model, acting as an advisor, enabling investors to invest in mutual funds of other AMCs. It has signed distribution agreements with multiple prominent AMCs and also plans to partner with leading banks with strong wealth management teams and no affiliated AMCs. The management is focused on expanding its digital and geographic presence. In line with its strategic roadmap, Lahore office is operational, with Islamabad office planned by March 2026 and Peshawar office in the second quarter of 2026. A dedicated sales center in Karachi and a permanent kiosk at Lucky One Mall are targeted for June 2026. This phased approach reflects measured and well-planned growth rather than aggressive expansion.


Performance
Asset Under Management

The AMC showed notable growth in Assets Under Management (AUMs), reaching PKR 131bln since the launch of its inaugural fund in Apr’25, reflecting an overall increase of ~126%. Its flagship offering, the Lucky Islamic Money Market Fund, accounts for approximately 43% of the total AUMs of the AMC, followed by the Lucky Islamic Income Fund. However, the fund significantly attracted a high number of accounts.


Asset Manager

On the financial side, profit after tax of AMC stood at PKR 91mln at the end of 6MFY26 (3QFY25: PKR 20mln), primarily due to an increase in fee and commission income. The equity of the AMC stood at PKR 604mln at the 6MFY26 (3QFY25: PKR 508mln).
 
 

Mar-26

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Lucky Investments Limited

funds performance

(Lucky Investments Limited)

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Sr. No. Fund Name Category Launch Date Weight (%) AUMs (PKR' mln) Return | Rolling 12 Months (Dec'25-Dec'24) Stability Rating/Performance Ranking
Dec-25 Sep-25 Jun-25 Mar-24 Return Benchmark Fund vs. Benchmark
Shariah Compliant Funds
1 Lucky Islamic Money Markey Fund Shariah Compliant Money Market 9-Apr-25 43% 56,604 62,136 57,965 20,215 - - - AA+
2 Lucky Islamic Income Fund Shariah Compliant Income 25-Apr-25 14% 18,863 8,286 1,186 6,769 - - - AA
3 Lucky Islamic Stock Fund Shariah Compliant Equity 25-Apr-25 13% 17,647 10,110 1,663 6,327 - - - -
4 Lucky Islamic Fixed Term Fund - Plan I Shariah Compliant Fixed Rate/Return 12-Jun-25 - - - 7,050 2,236 - - - -
5 Lucky Islamic Fixed Term Fund - Plan III Shariah Compliant Fixed Rate/Return 12-Aug-25 - - 9,575 - - - - - -
6 Lucky Islamic Fixed Term Fund - Plan IV Shariah Compliant Fixed Rate/Return 22-Sep-25 - - 16,072 - - - - - -
7 Lucky Islamic Fixed Term Fund - Plan V Shariah Compliant Fixed Rate/Return 13-Nov-25 3% 4,209 - - - - - - -
8 Lucky Islamic Fixed Term Fund - Plan VII Shariah Compliant Fixed Rate/Return 11-Dec-25 6% 8,467 - - - - - - -
9 Lucky Islamic Fixed Term Fund - Plan VIII Shariah Compliant Fixed Rate/Return 18-Dec-25 6% 8,488 - - - - - - -
10 Lucky Islamic Fixed Term Fund - Plan IX Shariah Compliant Fixed Rate/Return 24-Dec-25 7% 8,957 - - - - - - -
10 Lucky Islamic Fixed Term Fund - Plan X Shariah Compliant Fixed Rate/Return 24-Dec-25 4% 5,003 - - - - - - -
11 Lucky Islamic Fixed Term Fund - Plan XI Shariah Compliant Fixed Rate/Return 24-Dec-25 2% 2,004 - - - - - - -
12 Lucky Islamic Pension Fund Shariah Compliant Voluntary Penison Scheme 10-Nov-25 1% 1,162 - - - - - -
13 Lucky Islamic Punjab Pension Fund Shariah Compliant Voluntary Penison Scheme 22-Dec-25 0% 0.5 - - - - - -
Grand Total 100% 131,405 106,179 67,864 35,547

Mar-26

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Lucky Investments Limited

rating scale

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Mar-26

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Lucky Investments Limited

regulatory disclosure

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      3. The analyst is not a substantial shareholder of the customer being rated by PACRA [Annexure F; d-(ii)]
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