In CY24, Pakistan's financial markets saw strong recovery, with KSE-100, KSE-30, and KMI-30 indices up by ~84.36%, 74.47%, and ~70.56%, respectively. This was driven by factors like IMF program approval, monetary easing, foreign investment, and exchange rate stabilization. By Dec'24, foreign exchange reserves rose to USD 15.9 billion. In the Asset Allocation category, PACRA rated two out of thirteen funds, with the category returning ~54.15% on average. NBP Sarmaya Izafa Fund outperformed, delivering a 78.30% return and earning a 4-Star rating. Its portfolio allocation included ~82.4% in equities, ~12.7% in cash, ~2.4% in TFC/Sukuk, and ~2.5% in other assets. The Fund was diversified across sectors, with key allocations in Oil & Gas, Commercial Banks, Fertilizers, and Cement. The Fund effectively managed liquidity and capitalized on market opportunities.

Over the past three years, Pakistan’s capital markets faced challenges such as IMF delays, fiscal deficits, political instability, and inflation fluctuations, causing volatility. This affected investor sentiment, leading to varied fund performances within the Asset Allocation category, which posted an average return of ~90.21%. The top-performing fund returned ~153.48%, while NBP Sarmaya Izafa Fund achieved a 4-Star rating with a return of ~142.67%. This performance outpaced the category average and nearly matched the top fund. As of Dec'24, the Fund’s allocation was 82.4% in Equities, 12.7% in cash, 2.4% in TFC/Sukuk, and 2.5% in other assets. The Fund was diversified across sectors, with notable allocations in Oil & Gas, Commercial Banks, Fertilizers, and Cement. Its broad market exposure helped mitigate concentration risks, demonstrating its resilience in turbulent times.

Over the past five years, Pakistan’s equity markets faced volatility from macroeconomic imbalances, currency depreciation, political uncertainty, and monetary policy changes. Despite this, the markets saw a strong bull run in CY24, with KSE-100, KSE-30, and KMI-30 indices gaining ~84.36%, 74.47%, and ~70.56%, respectively. In the Asset Allocation category, PACRA rated two funds out of thirteen, with the category returning ~123.32% on average. The top fund returned ~232.21%, while NBP Sarmaya Izafa Fund achieved a 4-Star rating and a return of ~163.30% over five years. As of Dec’24, the Fund’s portfolio was diversified, with ~82.4% in Equities, ~12.7% in cash, ~2.4% in TFC/Sukuk, and ~2.5% in other assets. Sector-wise, it had allocations in Oil & Gas, Commercial Banks, Fertilizers, and Cement. The Fund’s strategy balanced risk and return, though it underperformed compared to the top fund. Nonetheless, its consistent performance highlights its strength within the Asset Allocation category.