PACRA assigns Initial Rating to Lucky Islamic Money Market Fund

Lucky Islamic Money Market Fund ('LIMMF' or the 'Fund') is a low risk profile Fund. The investment objective of the Fund is to generate regular and stable returns by investing primarily in Shariah Compliant Banks and Shariah Compliant windows of conventional Banks and any other Shariah compliant short-term securities and money market instruments.
The Fund’s credit quality is anchored by its targeted allocation in high rated investment avenues (with a significant portion of the placements in AAA and AA+) band in the form of Shariah Compliant Bank/DFI placements and short-term money market instruments, reflecting a core emphasis on premier-tier counterparties. Adequately decent amount will also be allocated to Daily Product Saving Accounts with banks in the top tier rating bands, which will optimize liquidity through high-grade cash deposits to further diversify exposure within the upper echelons of creditworthiness.
This rating reflects the fund's prospective conservative risk appetite. Adherence to Shariah compliance will be observed rigorously. The fund is expected to build a diversified investor base, as it achieves its prime. While the structure incorporates substantial allocations to bank placements 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.