In CY24, Pakistan’s financial markets saw strong recovery, with the KSE-100, KSE-30, and KMI-30 indices rising by ~84.36%, 74.47%, and 70.56%, driven by the IMF program’s approval, monetary easing, foreign investment, exchange rate stabilization, and rising foreign reserves (USD 15.9B). In the Asset Allocation category, PACRA rated two funds, with the average return at ~54.15%. Faysal Asset Allocation Fund earned a 5-Star rating, posting a 1-year return of ~75.85%, outperforming the category average. As of Dec'24, the Fund allocated ~47% to equities, ~18.77% in cash, and ~33.93% in other assets. Its equity exposure included Commercial Banks (~9.04%), Cement (~8.2%), Oil & Gas Exploration (~7.2%), Pharmaceuticals (~6.81%), and Fertilizers (~6.42%). The remaining ~9.63% was diversified across other sectors. The Fund’s upgrade to a 5-Star rating reflects its improved performance, strategic allocation, and strong liquidity management.

Over the past three years, Pakistan’s capital markets faced macroeconomic challenges, including IMF delays, fiscal deficits, political uncertainty, and policy rate fluctuations. These factors led to varied performance across Asset Allocation funds. PACRA rated two funds within a universe of thirteen, with the category’s average return at ~90.21%. Faysal Asset Allocation Fund earned a 3-Star rating, posting a 3-year return of ~111.14%, outperforming the category. As of Dec’24, the Fund’s allocation included ~47% in equities, ~18.77% in cash, and ~33.93% in other assets. Its equity exposure was diversified across Commercial Banks (~9.04%), Cement (~8.2%), Oil & Gas Exploration (~7.2%), Pharmaceuticals (~6.81%), and Fertilizers (~6.42%). The remaining ~9.63% was invested in other sectors. The Fund’s 3-Star rating reflects its ability to navigate volatility, achieving consistent returns through strategic allocation and risk management.

Over the five-year horizon, Pakistan’s equity markets saw significant volatility due to macroeconomic issues, currency depreciation, political instability, and policy changes. Despite these challenges, CY24 saw a strong rally, with KSE-100, KSE-30, and KMI-30 indices gaining ~84.36%, 74.47%, and ~70.56%, respectively. Within the Asset Allocation category, PACRA rated two funds, with an average return of ~123.32%. Faysal Asset Allocation Fund achieved a 4-Star rating with a return of ~232.21%, reflecting strong risk-return balance. As of Dec’24, the Fund’s allocation included ~47% equities, ~18.77% in cash, and ~33.93% in other assets. Its diversified equity exposure covered sectors like Commercial Banks (~9.04%), Cement (~8.2%), and Oil & Gas (~7.2%). The Fund’s liquidity management helped navigate market volatility. Although the 4-Star rating reflects strong performance, it suggests some room for improvement in strategy execution and adaptability. The Fund’s success underscores its resilience in a turbulent economic environment.