PACRA Maintains the Stability Rating of Lucky Islamic Cash Fund

Lucky Islamic Cash Fund ("LICF" or "the Fund") is categorized under a low-risk Islamic Money Market Scheme, with the objective of generating long-term, risk-adjusted returns through investments in Shariah-compliant securities and debt instruments in accordance with the Islamic money market category framework. As of Jun'26, the Fund's Assets Under Management (AUM) stood at PKR 5,549mln, compared to PKR 811mln as of Feb'26 (the last review), reflecting an expansion in fund size during the review period. The increase in AUM indicates increased investor participation and the strengthening of the Fund's scale. In terms of asset allocation, approximately 47% of the portfolio was maintained in cash and cash equivalents, ~33% in placements with banks/DFIs, ~19% in corporate Sukuks, and ~1% in other receivables. The portfolio remained well diversified across Shariah-compliant money market avenues, with a significant proportion maintained in liquid assets, consistent with the Fund's low-risk mandate. From a credit quality perspective, approximately 67% of the Fund's assets were invested in AAA rated instruments, ~12% in AA+ rated avenues, ~4% in A1+ rated instruments, ~15% in A1 rated instruments, and ~1% in unrated exposures. The Fund's overall credit profile remains very Strong, underpinned by the dominant allocation towards AAA and other highly rated Shariah-compliant instruments. The Fund's Weighted Average Maturity (WAM) stood at 34 days as of Jun'26, reflecting minimal sensitivity to profit rate movements. The short maturity profile, coupled with the sizeable allocation towards cash and bank placements, reinforces the Fund's liquidity position and provides flexibility to respond to changing market conditions and redemption requirements. The unit-holding pattern reflects relatively high investor concentration, with the top ten investors accounting for ~91% of the Fund's total holdings. However, a meaningful proportion of these investors is considered relatively long-term and sticky in nature, providing stability to the investor base. Furthermore, the Fund's highly liquid asset allocation and very short WAM provide very strong comfort regarding its ability to meet potential redemption requirements in a timely manner, thereby mitigating the redemption pressure associated with the concentrated unit-holding structure. In terms of performance, the Fund delivered a since-inception annualized return of 10.04% as of Jun'26, outperforming its benchmark return of 9.11% by approximately 93bps. The performance remained competitive while maintaining the Fund's very strong credit quality and short maturity positioning.
Going forward, any material changes in the investment policy or non-compliance with the rating criteria may impact the assigned rating.

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 126bln at end of Jun'26.