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

Yunus Brothers Group ("YBG" or "Group") acquired the erstwhile Interloop Asset Management Limited in December 2024 and subsequently renamed it Lucky Investments Limited. The transaction marked the Yunus Brothers Group’s strategic entry into Islamic capital markets and materially altered the AMC’s business profile. This acquisition reflects the Group’s strategic entry into the Islamic Capital Markets, aligning with the growing demand for Shariah-Compliant investment solutions.

As of FY26, 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: 4%). The increase in both overall and Islamic market share reflects strong business traction following the change in sponsorship and indicates the AMC’s ability to mobilize assets within a relatively short period. The sharper improvement in the Islamic segment demonstrates growing competitive strength in the AMC’s core Shariah-compliant market and supports its positioning as an increasingly significant industry participant.

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 launched its first Islamic pension fund in FY26 which adds a recurring, long-duration savings product. To further diversify its product suite, the AMC’s pipeline comprising an ESG Fund, Government-focused VPS solution, and a Capital Protected Fund reflecting its innovation-driven strategy. The AMC is also pursuing an RMC license to establish a REIT Fund, reflecting its continued focus on product diversification. This expansion beyond traditional mutual funds is expected to enhance earnings stability, expand market presence, and support sustainable long-term growth. 

The top 10 investor concentration account for ~70% of the total AUMs at the end of FY26 indicating a slightly improved diversification in the investor base. The average related party holding represents ~65% of total AUM. The investor base remains predominantly institutional, accounting for 78%, while retail investors contribute 22%, reflecting a relatively balanced yet institutionally driven clientele mix. Going forward, the AMC targets an increase in the overall investor base to approximately 8,000 investors by FY27. The AMC intends to achieve this through multiple acquisition channels, including the digital investment platform, YBG employee investment scheme, bank distribution partnerships, third-party distributors and broader HNW/retail outreach. The diversification strategy is also supported by management’s focus on deepening geographical and distribution reach. Further, YBG’s backing, brand trust and cross-selling potential as key strategic strengths for the AMC, providing an important platform for investor acquisition and AUM growth.

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.

Yunus Brothers Group is one of Pakistan’s leading diversified business conglomerates, with a strong presence across cement, textiles, automobiles, chemicals, healthcare and power generation, reflecting the sponsors’ established entrepreneurial track record, business acumen and ability to successfully operate businesses across diverse economic cycles. Mr. Mohammad Shoaib has over 36 years of experience in capital markets and was the Founding CEO of Al Meezan Investment Management Limited. He has an extensive experience in establishing and scaling an asset management business, coupled with his understanding of Shariah-compliant investments and capital markets. 

The sponsors of the AMC possess strong financial capacity to extend support to Lucky Investments Limited, if required. Given the AMC’s strategic association with YBG, there remains a high propensity for continued sponsor support in the event of additional capital or liquidity requirements. The strength of the sponsorship is further underpinned by YBG’s diversified business presence and established corporate standing, which provides Lucky Investments with balance-sheet support, brand credibility and access to a broad group ecosystem.

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.

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.

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. The committees architecture supports segregation of oversight responsibilities and enables focused review of financial reporting, people risk, investment and operational risk, regulatory compliance and internal controls. The effectiveness assessment is supported by regular Board attendance and direct escalation channels from control functions.

The AMC’s external auditor, Yousuf Adil & Co., issued an unqualified audit opinion on the financial statements for FY26. The internal audit function is outsourced to BDO Ebrahim & Co., while A.F. Ferguson & Co. serves as the auditor of the managed funds. All three audit firms are rated ‘A’ by the State Bank of Pakistan and hold a satisfactory Quality Control Review (QCR) rating from ICAP, reflecting an adequate level of external assurance and audit quality.

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.

The senior management team of the AMC comprises qualified and experienced professionals. Mr. Mohammad Shoaib - CEO Lucky Investments Limited, has 36 years of experience in capital markets and was the Founder CEO of Al Meezan Investment Management Limited. 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.

Recognizing the rapidly evolving distribution landscape, Lucky Investments has established a technology-enabled operating model supported by a fully functional online portal and mobile application. The mobile application is live on both iOS and Android and facilitates digital onboarding, investment through RAAST/Kuickpay, conversion and redemption transactions, portfolio monitoring, account statements, balance and investment certificates, fund information and investor communication. The application currently has around 823 registered users and processes approximately 900 transactions per month, indicating growing adoption of the digital channel. The AMC intends to further enhance its digital capabilities through integration with 1LINK for IBFT and bill payments, NADRA-based biometric verification, Easypaisa, CRM and complaint-management systems, along with enhancements in digital onboarding across different account categories. These initiatives are expected to reduce onboarding friction, improve transaction convenience and support scalability of the retail franchise. The AMC also identifies digital platform leadership as a core strategic priority, with management targeting platform enhancements and at least 40% of new customers to be acquired digitally, underscoring technology’s growing role as an independent distribution channel. 

The AMC maintains a structured control environment supported by independent compliance, risk management and Shariah oversight. The Compliance function, led by Mr. Owais Anwer, operates under a formal Anti-Money Laundering, Combating the Financing of Terrorism & Countering Proliferation Financing (AML, CFT & CPF) framework with oversight from senior management and the Board/sub-committees. The framework follows a three-lines-of-defense model, supported by risk-based customer classification, KYC/CDD procedures, enhanced due diligence for high-risk clients, maker-checker controls and periodic reviews. The AMC also undertakes sanctions screening, suspicious transaction monitoring, employee and vendor screening, and daily portfolio screening, while regular staff training and defined escalation procedures further strengthen the compliance culture. The AMC has implemented formal IT security policies, Wazuh-based security monitoring, a Fortinet gateway firewall, endpoint protection and user-based access controls, while migration towards centralized Active Directory and endpoint management is planned. These measures should improve access governance, threat detection and overall resilience of the control environment as the AMC expands its digital operations.

The AMC is actively preparing risk-adjusted investment strategies to optimize returns and set up independent risk committees to oversee fund performance. The AMC continues to strengthen its risk-adjusted investment framework; however, further formalization of stress testing, automated risk analytics and performance attribution would enhance the institutionalization of the credit-risk framework.

The AMC maintains liquidity through investments in money market and other relatively liquid instruments, while liquidity risk remains influenced by its concentrated institutional investors. The related-party investor base of 65% provides a degree of stability to the AMC’s AUMs, partially mitigating near-term redemption risk. Further, mitigate potential redemption pressure, management is focusing on broadening the investor base. The predominance of money market strategies also provides a degree of flexibility in managing short-term liquidity needs. Going forward, continued diversification of the investor base and strengthening of liquidity stress-testing and redemption-monitoring mechanisms would remain important for sustaining the liquidity profile.

The AMC manages market risk through diversification across Islamic money market, sukuk, fixed-income and equity-oriented strategies, which helps spread exposure across asset classes with varying sensitivity to interest-rate and equity-market movements. Fund strategies and performance are reviewed through the Investment Committee in light of prevailing market conditions, while liquidity is maintained to absorb short-term market volatility. Management also envisages further product diversification through asset-allocation, capital-protected and dividend-yield offerings, which may support risk dispersion across market cycles. Going forward, formal stress testing, scenario analysis and enhanced risk analytics would further strengthen the AMC’s ability to assess portfolio sensitivity under adverse market conditions.

The Investment Committee (IC) comprises the CEO, Chief Investment & Strategy Officer, Head of Research, Head of Fixed Income, Head of Equities and Head of Compliance/Risk, providing representation across key investment and control functions. The composition allows investment decisions to incorporate macroeconomic outlook, research views, asset-class positioning, liquidity considerations and regulatory/Shariah compliance. The presence of senior investment professionals together with Compliance/Risk supports an appropriate balance between return optimization and risk oversight.

The IC comprises experienced professionals who periodically review the investment strategy, asset allocation and performance of each fund in light of prevailing market conditions. Investment proposals are deliberated with consideration of portfolio exposures, liquidity, credit quality, market developments and applicable Shariah and regulatory limits. The involvement of research, fixed income, equities and compliance/risk functions enables a multidisciplinary assessment of investment decisions and supports timely portfolio repositioning.

M. Saad Ali, Head of Research, has over 14 years of work experience in the capital market of Pakistan. A team of 2 research analysts and one data analyst is engaged, with a primary focus on the energy, cement, pharmaceutical, and automobile sectors initially. The department also reviews portfolio attribution and recommends changes in portfolio allocations based on changing fundamentals and valuations; it presents quarterly earnings reviews and earnings estimates, and discusses key insights from external broker research. In collaboration with the Fixed Income Department, the Research Department also conducts fundamental analysis of Sukuk issues, evaluating the creditworthiness of issuers, financial strength, cash flow generation, and key risks. The function currently relies primarily on Excel-based analytical tools and financial models to support investment recommendations. Management also plans to further strengthen the investment and research function as the business scales, while increased automation, broader analytical coverage and advanced risk/performance analytics would enhance the depth and scalability of the research framework.

The AMC continues to strengthen investor servicing through a combination of digital channels and relationship-based support. Its mobile application provides digital onboarding, portfolio access, transaction processing, statements, certificates, fund information and investor notifications. Management further envisages enhancements including IBFT/1LINK integration, improved digital KYC, CRM integration, robo-advisory risk profiling and broader self-service capabilities. The AMC also plans to target enhanced customer support through a call centre, web chat and WhatsApp-based services, which would improve accessibility and responsiveness as the retail investor base expands.

The AMC maintains regular investor communication through account statements, balance and investment certificates, fund manager reports and other fund-related disclosures available through its digital channels. The mobile application also provides investors with portfolio-level information, NAVs, performance analysis and transaction monitoring, improving transparency and ease of access to investment information. Going forward, management plans to enhance the investor experience through real-time portfolio dashboards, notifications and CRM-enabled communication, supporting more timely and personalized reporting as the investor base grows. 

The AMC follows a multi-channel distribution strategy encompassing its own sales network, digital platform, third-party distributors and the wider YBG ecosystem. Its physical presence currently extends across Karachi, Lahore and Islamabad, while management intends to increasingly leverage digital distribution to expand beyond the existing geographical footprint. Management also identifies the proposed bank distribution partnership as a key growth initiative, alongside the YBG employee scheme, dealer and supplier network, third-party distributors and dedicated HNW/corporate relationship managers. These initiatives are expected to broaden the AMC’s market reach, improve retail penetration and reduce dependence on a concentrated institutional investor base. 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 AMC showed an increase of 60% in Assets Under Management (AUMs), reaching PKR 126bln since the launch of its inaugural fund since FY25. Its flagship offering, the Lucky Islamic Money Market Fund, accounts for approximately 41% of the total AUMs of the AMC, followed by the Lucky Islamic Income Fund. However, the fund significantly attracted a high number of accounts. The AMC’s funds largely outperformed their respective benchmarks while remaining broadly in line with industry averages, reflecting satisfactory fund performance. During the period, the AMC also expanded its product suite through the launch of its first dedicated energy fund, supporting further product diversification. During the period, the AMC launched its first Islamic Pension Fund, which is expected to benefit from potential participation by YBG Group employees, corporate retirement funds, and government pension schemes. 

On the financial side, the AMC’s management fee increased to PKR 826mln at the end of FY26 (FY25: PKR 172mln). Consequently, net profitability increased to PKR 226mln (FY25: PKR 19mln), supported by elevated management fee income and other income. The AMC’s equity strengthened to PKR 733mln (FY25: PKR 507mln), remaining comfortably above the minimum regulatory capital requirement and providing adequate financial cushion to support future.