Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has recently assigned star rankings to the AKD Islamic Stock Fund, reflecting its performance across one, three, and five-year periods amidst fluctuating economic conditions.

According to The Pakistan Credit Rating Agency Limited, “The AKD Islamic Stock Fund received varying star rankings over different investment periods based on its returns compared to the market and category averages.” During the fiscal year 2024, the fund achieved a remarkable return of approximately 94.74%, earning it a four-star rating as it significantly outperformed the KSE-100 index’s return of about 78.69%.

In contrast, over the past three years, the fund struggled relative to the broader market, returning only about 29.92% compared to the market’s return of 64.99%, which resulted in a two-star ranking. Economic challenges such as delays in the IMF program resumption, fiscal deficits, and fluctuating policy rates impacted its performance.

The fund showed stronger performance over a five-year period, posting an 85.90% return despite severe market disruptions during 2020 due to the COVID-19 pandemic. This performance, although below the market return of approximately 133.61%, was enough to secure a five-star rating for this longer term.

Sector-wise, the AKD Islamic Stock Fund has been heavily invested in equities, with significant allocations in Oil and Gas Marketing and Exploration Companies, Power Generation and Distribution, and Commercial Banks. This strategic asset allocation underscores the fund’s approach to tapping into diverse sectors to generate income for its investors.