PACRA Assigns Initial Asset Manager Rating to Lucky Investments Limited

Lucky Investments Limited (“Lucky Investments”, or “the AMC”) is the latest venture of YB Group. The YB Group is one of largest business groups in Pakistan, with prominent presence in the cement, textile, automobile, chemicals, healthcare and power generation sectors. Operating as a full-fledged Islamic asset management company, Lucky Investments intends to become a premier choice for Shariah-Compliant investments, aiming sustainable growth with integrity and innovation. There is an increasing realization and demand for Islamic offerings and Lucky Investments plans to capture the larger chunk of the market. The assigned rating reflects strong sponsor backing and professional management, ushering bright prospects for the AMC. The injection of capital is an undeniable testimonial. 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 likely to benefit from their relationships across the corporate and financial spectrum of the economy. The rating also gets support from the experienced management team. They are well entrenched in the market and known for their previous track record of success. The focus of the management is to lay a strong foundation, which will play fundamental role in 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. The AMC will not only manage a suite of Islamic collective investment schemes (open-end funds), but also offer broader investment advisory and distribution services beyond their own basket of mutual funds. It also intends to enter the Voluntary Pension soon. Lucky Investments lately marked the launch of Lucky Islamic Money Market Fund, which gathered unprecedented subscription, rarely known in the market. IPO of Lucky Islamic Income Fund and Lucky Islamic Stock Fund is in the offing. The management envisages higher share from the retail investors in the future. A broader corporate and institutional base would also usher in. The technology development would be helpful in these initiatives. Currently, the AMC is engaged with IT Minds, which is fulfilling the fundamental needs and the investor base. Pakistan’s asset management industry is on a growth trajectory, with mutual fund AUMs surpassing PKR 4 trillion. Islamic AUMs have notably outpaced conventional funds over the past three years. To deepen market penetration and build a strong customer base, the AMC is actively developing innovative digital solutions to enhance client access and engagement. As of now, the AMC's equity base stands at PKR 500mln, well above the minimum regulatory requirement.
Outlook on the rating is Positive, which captures the initiatives taken by the management, having upside potential as they materialize in upcoming days.

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. It has also applied for license for Pension Fund Manager. Currently, the AMC is owned (70%) by YB Pakistan, while the remaining 30% is held by Mr. Muhammad Shoaib, CFA and a seasoned professional with 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 business man.