PACRA assigns Initial Rating to Lucky Islamic Income Fund

Lucky Islamic Income Fund ('LIIF' or the 'Fund') is a low to moderate risk profile Fund. The investment objective of the Fund is to provide stable and competitive returns by investing in a diversified portfolio of Shariah Compliant instruments including government-backed securities, corporate sukuks, and placements with Islamic Banks and Islamic windows of conventional banks.
The Fund’s credit quality is anchored by targeted allocations to high-rated investment avenues. These are expected to include government-guaranteed securities and placements with Banks and DFIs having superior credit quality. A considerable portion is intended to be placed in daily product saving accounts with banks offering higher rates to match the return aspirations, while managing the overall risk profile of the fund. This will help in supporting liquidity needs without creating much impact on the credit risk.
The Fund's prospective conservative risk appetite is a key element in the assigned rating. Adherence to Shariah compliance will be observed rigorously. The Fund is expected to build a diversified investor base as it matures. While the structure incorporates substantial portion of readily convertible cash allocations to strengthen its liquidity profile, the effectiveness of this measure in mitigating redemption pressures will ultimately depend on future shifts in the investor base and broader asset diversification.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
Lucky Investments Limited (formerly Interloop Asset Management Limited), incorporated in December 2021 under the Companies Act, 2017, operates as a regulated Non-Banking Finance Company under the oversight of the Securities and Exchange Commission of Pakistan (SECP). As a subsidiary of the YB Group, Lucky Investments marks the conglomerate’s strategic expansion into Pakistan’s Islamic capital markets, capitalizing on growing demand for Shariah-compliant investment solutions. The company is led by Mohammad Shoaib, CFA, an industry veteran with over three decades of experience, recognized for his significant contributions to the development of Pakistan’s capital markets and Islamic finance sector.