In CY24, Pakistan’s equity market saw a strong bull run, with the KSE-100, KSE-30, and KMI-30 indices surging by ~84.36%, 74.15%, and ~70.56%, respectively. This growth was driven by key macroeconomic factors, including the IMF program approval, monetary policy easing, PKR/USD stabilization, and FX reserves rising to USD 15.9 billion by Dec’24. The Shariah-compliant equity category posted an average return of ~82.20%, with the top fund yielding ~115.7%. PACRA assigned star ratings to three funds out of 21. AKD Islamic Stock Fund, rated 2-star, delivered a ~66.43% return. At the end of December 2024, the exposure in Equities was 95.06%, with major sectoral exposure in Power Generation & Distribution (~19.75%), Fertilizers (~17.08%), Pharmaceuticals (~16.04%), Cement (~8.85%), and Oil & Gas Marketing Companies (~8.75%). The Fund maintained liquidity buffers but had limited exposure to some outperforming sectors, which impacted returns. Future strategic rebalancing will be crucial for competitiveness.

Over the past three years, Pakistan’s equity market faced macroeconomic volatility, including IMF program delays, fiscal deficits, fluctuating policy rates, and inflationary pressures. Despite this, the Shariah-compliant equity category posted an average return of ~143.61%, with the top fund achieving ~233.69%. PACRA rated two funds from a universe of 21, assigning AKD Islamic Stock Fund a 2-star rating. The Fund delivered a ~116.06% cumulative return, underperforming the category average and top quartile performers. At the end of December 2024, the exposure in Equities was 95.06%, and Cash was 1.25% for liquidity while 3.69% were other assets including receivables. Major sectoral allocations included Power Generation & Distribution (~19.75%), Fertilizers (~17.08%), and Pharmaceuticals (~16.04%), alongside Cement (~8.85%) and Oil & Gas Marketing (~8.75%). A ~24.59% diversified allocation reinforced its risk-adjusted profile. The Fund’s strategy focused on high-growth sectors while maintaining liquidity buffers, for risk-adjusted returns and positive alpha generation.

Over the past five years, Pakistan’s capital markets experienced structural and macroeconomic shifts, marked by IMF program delays, fiscal imbalances, political uncertainty, inflation volatility, and currency depreciation. These factors influenced investor sentiment and market liquidity. Amid this, PACRA assigned star ratings to two funds from a universe of 21, with AKD Islamic Stock Fund earning a 5-star rating. The Fund delivered a stellar ~152.06% cumulative return, exceeding the category average of ~120.51% and matching the segment’s top performer. At the end of December 2024, the exposure in Equities was 95.06%, and Cash was 1.25% for liquidity while 3.69% were other assets including receivables. Major sectoral exposures included Power Generation & Distribution (~19.75%), Fertilizers (~17.08%), and Pharmaceuticals (~16.04%), alongside Cement (~8.85%) and Oil & Gas Marketing (~8.75%). A diversified ~24.59% allocation reinforced its risk-adjusted positioning. The Fund’s strategy focused on high-growth sectors while maintaining liquidity buffers, contributing to its 5-star rating for risk-adjusted returns and positive alpha generation.