Lucky Islamic Energy Fund

Focused on Pakistan’s energy ecosystem, the Lucky Islamic Energy Fund is invested in listed equities and upcoming IPO firms – taking in to account a market shaped by regulatory oversight, capital intensity and commodity cycles.

Launched on the 30^th December 2025, this open-ended Shariah compliant fund aims to mitigate concentration risk through exposure across energy sub-segments – including exploration and production, refining, power generation, gas distribution, oil marketing and renewables.

This spread “smooths out idiosyncratic risk tied to any one niche within the broader energy sector”, fund manager Lucky Investments CEO Mohammad Shoaib told IFN Investor.

In periods of commodity stress, for example spiking or dampened oil prices, the fund manager can overweight more defensive or stable energy-adjacent subsectors – such as power generation or renewables to mitigate volatility, he explained.

The investment team will also monitor Pakistan’s evolving energy policy environment – including tariffs, subsidies plus import and export dynamics – to actively assess regulatory shifts and rebalance toward companies best positioned to benefit or withstand policy shocks.

At least 70% of the fund’s NAV is to be held in energy equities listed on the Pakistan Stock Exchange (PSX), with up to another 15% to be invested in firms with upcoming PSX-approved IPOs. No more than 30% can be in government Sukuk Ijarah capped at 90 day-validity or in Shariah bank deposits.

“Shariah oversight reinforces disciplined security selection, meaning companies are selected not just on pure sector exposure but on governance and ethical screens that may help guard against structural risks.”

While the fund may seek to invest in foreign energy equities, capped at US$15 million or 30% of NAV, Mohammad said this fund’s “strategy focuses on Shariah compliant energy equities listed in Pakistan and does not intend to have an offshore allocation”.

Using the Karachi Meezan Index 30 – which tracks the largest Shariah compliant stocks on the PSX – as a comparative yardstick, the fund management team can keep adjusting exposures in response to cyclical risk, sentiment shifts and regulatory developments, he noted.

Applying a discretionary yet income-focused distribution policy, the fund aims to distribute a large proportion, often 90% or more, of annual income to unit holders after expenses. Investors may choose to receive dividends in cash or reinvest them into new units.

Financing is only allowed for redemption requests, capped at 15% NAV and repayable within 90 days.

Before the initial offer period closed on the 1^st January 2026, the minimum initial investment was PKR5,000 (US$17.85), with subsequent contributions in PKR1,000 (US$3.57) multiples.

*Disclaimer:  The opinions and viewpoints expressed in the Fund Profile do not constitute as  recommendations for any fund highlighted. The information presented is not investment advice and should not be treated as such.

Source: Lucky Investments