PACRA maintains the Stability Rating of Lucky Islamic Money Market Fund

Lucky Islamic Money Market Fund ("LIMMF" 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. As of Mar'26, the Fund's Assets Under Management (AUM) stood at PKR 54,908mln, compared to PKR 62,136mln as of Sep'25 (the last review), reflecting a contraction in fund size during the review period, broadly in line with the industry trend of investor reallocation amid the prevailing monetary easing cycle. In terms of asset allocation, approximately 44% of the portfolio was invested in placements with banks/DFIs, 23% in GoP Guaranteed Securities, 20% in cash and cash equivalents, 12% in corporate sukuks, and ~1% in other receivables, reflecting a well-diversified Shariah compliant portfolio with a strong emphasis on liquidity and capital safety. From a credit quality perspective, approximately 55% of the Fund's assets were invested in AAA rated instruments and Government Securities, ~22% in AA+ rated avenues, ~6% in AA rated instruments, ~6% in A1+ rated instruments, and ~9% in A1 rated instruments, with the remainder in other exposures. The overall credit profile remains strong, with the bulk of exposures concentrated in the highest quality instruments, providing a strong investment-grade anchor to the portfolio. The Fund's Weighted Average Maturity (WAM) stood at 61 days as of Mar'26, reflecting low sensitivity to interest rate movements and reinforcing the Fund's strong liquidity position. The short WAM profile enables the Fund to reprice its portfolio rapidly in response to changes in the monetary policy environment, thereby protecting unit holders from adverse interest rate movements. In terms of performance, the Fund reported an annualized one-year return of 10.30% as of Mar'26, against a benchmark return of 9.56%, reflecting a notable outperformance of approximately 74 basis points. This above-benchmark outcome is considered a commendable result for a low-risk Islamic money market fund, demonstrating the Fund's effective portfolio management within the Shariah compliant investment universe and its ability to generate competitive risk-adjusted returns while maintaining its conservative, liquidity-first investment discipline throughout the review period.
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.