Lucky Investments Limited has achieved the highest asset manager rating of AM1 from the Pakistan Credit Rating Agency, following an upgrade from its previous AM2++ rating. The upgraded rating, which became effective on August 7, 2026, carries a Stable outlook and reflects the company’s strengthening position in Pakistan’s Islamic asset management sector, along with the institutional support available through the YBG Group. The Pakistan Credit Rating Agency noted that Lucky Investments has built a meaningful presence in the Islamic asset management market despite commencing operations only in December 2024. Within approximately 18 months, the fully Shariah compliant asset management company has expanded its business, developed its product portfolio and strengthened its distribution capabilities. As of the latest reporting period, the company’s assets under management stood at approximately Rs126 billion, representing nearly 3 percent of Pakistan’s overall asset management industry and around 6 percent of the Islamic asset management segment. The rating agency attributed the company’s progress to effective execution of its business strategy, access to established corporate and financial relationships across the YBG Group ecosystem, and an experienced management team operating within an effective governance framework.
A significant portion of Lucky Investments’ assets under management remains concentrated in the Lucky Islamic Money Market Fund, followed by the Lucky Islamic Income Fund, while overall fund performance has remained broadly aligned with industry averages. During the latest period, the company expanded its product portfolio by launching its first Islamic Pension Fund, which is expected to attract participation from employees of the YBG Group, corporate retirement funds and government pension schemes. Lucky Investments has also introduced a distribution platform through which investors can access Collective Investment Schemes managed by other asset management companies. The platform expands the range of investment products available to customers while creating an additional source of distribution fee income for the company. The Pakistan Credit Rating Agency also noted that Lucky Investments is progressing plans to introduce Pakistan’s first ESG focused fund and a Capital Protected Fund, while the company is pursuing a Real Estate Management Company licence to establish a Real Estate Investment Trust Fund. These initiatives indicate an effort to broaden the company’s product range beyond its existing Islamic money market and income offerings and provide investors with additional investment options.
Lucky Investments has also been working to expand its retail investor base, which has historically remained concentrated among institutional and high net worth clients. Retail participation has gradually increased, reaching approximately 22 percent of the company’s investor base. To support further growth in this segment, the asset manager has operationalised its Lahore office and is planning additional expansion into Islamabad, Peshawar and Karachi. Alongside its physical distribution strategy, the company has developed secure application programming interface based integrations with fintech companies, Electronic Money Institutions and other digital ecosystem partners. These integrations are designed to facilitate digital onboarding, payments, fund transfers and other value added services for investors. The combination of branch expansion and digital distribution is expected to provide Lucky Investments with additional channels through which it can reach retail customers and expand participation in investment products. The company’s efforts to establish digital connections with financial technology businesses and Electronic Money Institutions also position technology as an important component of its strategy to improve access to investment services and deepen its reach beyond its traditional institutional and high net worth customer base.
The company’s financial position has also strengthened during the period under review. Profit after tax increased to Rs226 million in financial year 2026, primarily due to higher fee and commission income. The improvement in earnings contributed to a stronger equity base and overall financial profile, factors that support the company’s position as it continues to expand its assets under management and distribution network. The Pakistan Credit Rating Agency said the continuation of the rating would depend on Lucky Investments’ ability to sustain growth in assets under management, strengthen its market position and maintain competitive fund performance. The rating agency also identified the execution of the company’s branch expansion and distribution strategy as an important consideration, alongside continued diversification of its investor base through stronger retail penetration and digital and strategic distribution channels. These factors will remain relevant as the company seeks to build on the growth achieved since beginning operations in December 2024 and further establish itself within Pakistan’s Islamic asset management industry.
Commenting on the achievement, Mohammad Shoaib, CFA, Chief Executive Officer of Lucky Investments Limited, described the AM1 rating as a major milestone for the company, noting that it had achieved the highest possible asset manager rating within approximately 18 months of commencing operations. He said the recognition reflected the trust placed in Lucky Investments by its investors and stakeholders and credited investors, directors, sponsors, management, business partners, regulators and other contributors to the company’s progress. Shoaib further said the AM1 rating reinforces the company’s focus on governance, fiduciary responsibility, investment standards and Shariah compliance. He added that Lucky Investments intends to continue developing investment solutions, improve the investor experience through digital transformation, expand its branch distribution network and contribute to the development of Pakistan’s Islamic capital markets. The company’s rapid progression to the highest asset manager rating comes as Pakistan’s Islamic asset management segment continues to expand, while Lucky Investments seeks to increase its market presence through product diversification, digital access, retail penetration and strategic distribution. PACRA’s Stable outlook indicates that the rating is supported by the company’s current profile, while its ability to maintain growth, fund performance, investor diversification and execution of its expansion plans will remain important to its future rating position.
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