PACRA Assigns Initial Stability Rating to Lucky Islamic Cash Fund

Lucky Islamic Cash Fund ("LICF" or "the Fund") is categorized under a low-risk profile, with the objective of generating regular and stable returns through investment in Shariah compliant banks, Shariah compliant windows of conventional banks, and other Shariah compliant short-term securities and money market instruments. The Fund operates alongside Lucky Islamic Money Market Fund within the same Shariah-compliant Money Market category; however, the primary point of differentiation lies in the dividend distribution policy, with Lucky Islamic Cash Fund offering a wider range of distribution frequencies including daily, weekly, monthly, quarterly, and bi-annual options catering to varying investor liquidity preferences and income needs, thereby serving meaningfully distinct investor profiles. As of Feb'26, the Fund's Assets Under Management (AUM) stood at PKR 811mln, compared to PKR 675mln at the time of its launch in January 2026, reflecting a steady initial growth of approximately PKR 136mln. While the Fund remains in its early stages, this initial traction is indicative of growing investor appetite for Shariah-compliant money market solutions in the domestic market. In terms of asset allocation, approximately 79% of the portfolio was invested in cash and cash equivalents, with ~20% in corporate sukuks and the remainder in other eligible instruments, reflecting a well-structured liquidity-first approach with a selective allocation to short-term Shariah compliant debt instruments for incremental yield enhancement. From a credit quality perspective, ~79% of the Fund's assets were placed in AA+ rated instruments and ~20% in A1 rated instruments, with the remainder in other exposures. The overall credit profile is considered sound and well-structured, underpinned by a dominant allocation to high-grade instruments that provides a resilient foundation to the portfolio against potential credit stress scenarios. The Fund's Weighted Average Maturity (WAM) stood at 35 days as of Feb'26, indicating limited interest rate sensitivity and an adequate liquidity profile. The short duration positioning affords the Fund meaningful flexibility to reprice its portfolio in response to evolving monetary policy and market conditions, a feature that is particularly relevant in the current rate-sensitive environment. In terms of performance, the Fund reported a return of 9.51% as of Feb'26 against a benchmark return of 8.67%, reflecting an outperformance of approximately 84 basis points. This positive performance differential underscores the Fund's effective portfolio positioning and disciplined capital deployment across eligible Shariah compliant avenues during the review period. As the Fund continues to progress through its seasoning period and achieves greater scale, performance is expected to be sustained and further strengthened, supported by a more fully deployed and diversified portfolio.
Going forward, the Fund intends to operate within broad money market stipulations, maintaining a balance between yield optimization and disciplined management of associated risks.

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 127bln at end of Feb'26.