PACRA Maintains Stability Rating of Lucky Islamic Income Fund

Lucky Islamic Income Fund (“LIIF” or “the Fund”), a medium-risk profile fund, aims to generate long-term, risk-adjusted returns for its investors through investments in Shariah-compliant securities and Islamic income instruments in line with the Islamic Income Fund category. As of September 2025, the Fund’s assets under management (AUM) stood at PKR 8,286 million. The Fund maintained a balanced allocation, with approximately 33% placed with Banks/DFIs/NBFCs and Modarabas, 33% invested in corporate Sukuks, 25% held in cash and cash equivalents, and 7% in GOP-guaranteed securities, while the remaining portion was deployed across other avenues. This allocation structure reflects the Fund’s strategy of enhancing returns through selective exposure to Shariah-compliant fixed-income instruments while maintaining adequate liquidity. The credit quality profile of the Fund remained sound, with around 39% exposure in AA- rated avenues, 26% in A1, 19% in A1+, 13% in AA+, and 2% in AAA-rated instruments, highlighting the Fund’s approach to balancing return and credit quality within its medium-risk mandate. The Weighted Average Maturity (WAM) stood at 200 days, indicating relatively higher exposure to credit and interest rate risk compared to short-term Islamic funds. The longer WAM reflects the Fund’s positioning in medium-tenor Sukuks and placements to capture better yield opportunities. The unit holding structure of the Fund remained concentrated, with the top 10 investors collectively accounting for ~86% of total holdings as of end-September 2025. While this level of concentration presents high redemption pressure, the Fund’s allocation in liquid Islamic avenues provides sufficient flexibility to manage withdrawals effectively 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.