Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has announced the retention of the stability rating for the Lucky Islamic Money Market Fund (LIMMF), highlighting its low-risk profile and ability to deliver consistent returns through Shariah-compliant investments. The fund's recent performance, with an annualized one-year return of 10.30% as of March 26, exceeded its benchmark return of 9.56%, showcasing effective portfolio management in a challenging monetary environment.

According to PACRA, LIMMF's assets under management stood at PKR 54,908 million as of March 26, a decrease from PKR 62,136 million in the previous review period ending September 25. This contraction aligns with an industry trend of investor reallocation amid a prevailing monetary easing cycle. The fund's asset allocation is diversified across various Shariah-compliant instruments, with significant portions in bank placements, government-guaranteed securities, and corporate sukuks, emphasizing liquidity and capital safety.

The fund's credit quality remains robust, with a majority of investments in AAA-rated instruments and government securities. The weighted average maturity of 61 days indicates a low sensitivity to interest rate changes, allowing the fund to quickly adjust its portfolio in response to monetary policy shifts. This strategy helps protect unit holders from adverse interest rate movements while maintaining a conservative investment approach.

PACRA notes that any significant changes in investment policy or compliance with rating criteria could affect the fund's stability rating in the future.