PACRA Maintains the Stability Rating of Lucky Islamic Income Fund

Lucky Islamic Income Fund ("LIIF" or "the Fund") is categorized under a medium-risk profile, with the objective of generating long-term and risk-adjusted returns through investment in Shariah compliant securities and Shariah compliant debt instruments in accordance with the Islamic Income category framework. The Fund operates within an Islamic finance framework, making it suitable for investors seeking competitive income returns through a diversified Shariah compliant fixed income portfolio while accepting moderate credit and interest rate risk. As of Mar'26, the Fund's Assets Under Management (AUM) stood at PKR 19,991mln, compared to PKR 8,286mln as of Sep'25 (the last review), reflecting a remarkable expansion of approximately PKR 11,705mln representing more than a doubling of fund size over the review period indicative of strong and accelerating investor appetite for the Fund's Shariah compliant income proposition. In terms of asset allocation, approximately 36% of the portfolio was invested in placements with banks/DFIs, NBFCs and modarabas, 32% in cash and cash equivalents, 25% in corporate sukuks, and ~4% in GoP Guaranteed Securities. From a credit quality perspective, approximately 19% of the Fund's assets were invested in AAA rated instruments, ~24% in AA+ rated avenues, ~29% in AA rated instruments, and ~16% in A1+ rated instruments, with the remainder in other exposures. The overall credit profile is considered sound and well-structured, with the bulk of exposures concentrated in high-grade instruments providing a strong investment-grade anchor to the portfolio.
The Fund's Weighted Average Maturity (WAM) stood at 58 days as of Mar'26, reflecting low sensitivity to interest rate movements. The short WAM profile provides the Fund meaningful flexibility to reprice its portfolio in response to evolving monetary policy and market conditions. In terms of performance, the Fund reported an annualized one-year return of 10.43% as of Mar'26, against a benchmark return of 9.69%, reflecting a notable outperformance of approximately 74 basis points. This above-benchmark outcome is considered a commendable result for a medium-risk Islamic income fund, reflecting the Fund's effective portfolio management within the Shariah compliant investment universe and its ability to generate competitive risk-adjusted returns through disciplined allocation across Islamic debt instruments and bank placements.
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. The Company had Assets Under Management (AUM) of PKR 130bln at end of Dec'25.