During CY24, Pakistan’s equity market saw strong gains, with KSE-100, KSE-30, and KMI-30 indices rising ~84.36%, 74.47%, and ~70.56%, respectively. This rally was driven by key developments such as the IMF program approval, easing monetary policy, renewed foreign interest, exchange rate stabilization, and increased foreign exchange reserves. Within the Equity Fund category, PACRA rated five funds, with the category average return at ~69.65%. Faysal Stock Fund achieved a 3-Star rating, posting a 1-year return of ~74.92%, improving from a 1-star rating. The Fund’s performance lagged the broader market, but its upgrade reflected better risk-adjusted returns and improved diversification. As of Dec’24, the Fund’s asset allocation was ~73.18% in equities, ~10.19% in cash, and ~16.62% in other assets. Its largest sector allocations were Cement (~15.29%), Commercial Banks (~12.29%), Pharmaceuticals (~10.37%), and Fertilizers (~8.58%). The Fund’s rating upgrade reflects improved performance through refined strategies, sectoral allocations, and risk management.

Over the three-year horizon, Pakistan’s capital markets faced significant volatility due to delays in the IMF program, fiscal deficits, political uncertainty, and inflation fluctuations. These challenges impacted investor sentiment and led to varying performance across Equity Funds. PACRA rated five funds, with the category’s average return at ~108.73%. The top-performing fund posted a return of ~213.38%, while Faysal Stock Fund recorded a return of ~(-6%) and received a 1-star rating. As of Dec’24, the Fund allocated ~73.18% to equities, ~10.19% to cash, and ~16.62% to other assets. Major sector allocations included Cement (~15.29%), Commercial Banks (~12.29%), Pharmaceuticals (~10.37%), and Fertilizers (~8.58%). The Fund’s underperformance stemmed from market timing challenges and sector allocations. Moving forward, dynamic asset allocation, better risk management, and sector adjustments will be crucial for improving future performance.

Over the five-year horizon, Pakistan’s equity markets faced volatility due to macroeconomic imbalances, currency depreciation, political uncertainty, and monetary policy fluctuations. Despite this, a strong bull run in CY24 saw the KSE-100, KSE-30, and KMI-30 indices gain ~84.36%, 74.47%, and 70.56%, respectively. Within the Equity Fund category, PACRA ranked five funds out of twenty-four, with the category average return at ~130.62%. The top fund returned ~214.82%, while Faysal Stock Fund posted a return of ~31.23%, lagging the category. As of Dec’24, the Fund allocated ~73.18% to equities, ~10.19% to cash, and ~16.62% to other assets. Major sector allocations included Cement (~15.29%), Commercial Banks (~12.29%), and Pharmaceuticals (~10.37%). The Fund’s underperformance reflected market timing issues, sectoral allocations, and exposure to weaker equities. For future improvements, a more adaptive strategy and sectoral adjustments are key to boosting long-term performance.