PACRA Maintains Stability Rating of Lucky Islamic Money Market Fund

Lucky Islamic Money Market Fund (“LIMMF” or “the Fund”), a low-risk profile fund, aims to generate regular and stable returns for its investors by investing primarily in Shariah-compliant banks, Shariah-compliant windows of conventional banks, and other short-term Islamic money market instruments. As of September 2025, the Fund’s assets under management (AUM) stood at PKR 62,136 million. The Fund maintained a diversified allocation, with approximately 45% placed with Banks/DFIs, 31% held in cash and cash equivalents, 13% invested in GOP-guaranteed securities, and 10% in corporate Sukuks, while the remaining portion was deployed across other avenues. This allocation structure underscores the Fund’s strategy of maintaining liquidity and capital preservation while delivering steady Shariah-compliant returns. The credit quality profile of the Fund remained strong, with around 41% exposure in AAA-rated avenues, 23% in AA+, 24% in AA, 8% in A1+, and 2% in A1-rated instruments, reflecting the Fund’s focus on maintaining a high-quality, low-risk portfolio. The Weighted Average Maturity (WAM) stood at 69 days, indicating a conservative maturity profile with limited exposure to credit and interest rate risk. This short duration reflects the Fund’s preference for short-term, liquid instruments in line with its low-risk mandate. The unit holding structure of the Fund remained concentrated, with the top 10 investors collectively accounting for ~82% of total holdings. While this level of concentration introduces high redemption pressure, the Fund’s significant investment in short-term, high-quality Islamic instruments provides adequate flexibility to manage redemptions without disrupting portfolio stability.
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 106.18bln at end of Sep'25.