Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has assigned rankings to the AKD Opportunity Fund across different timeframes, reflecting varying performance against a backdrop of challenging market conditions. The ratings reveal underperformance in shorter durations but a slight improvement over a five-year period despite a tumultuous economic landscape.

According to The Pakistan Credit Rating Agency Limited, during the fiscal year 2024, the AKD Opportunity Fund received a 2-star ranking with a one-year total return of approximately 27.28%, significantly lagging behind the KSE-100 index’s surge of about 89.42%. The broader market benefited from macroeconomic improvements, including an IMF program approval and stabilization in foreign exchange conditions. The fund, predominantly invested in equities, showed disparate sectoral investments with notable allocations in investment banks, textiles, and insurance.

In a three-year review, the fund again underperformed with a negative return of about 17.29%, contrasting sharply with the stock market’s overall gain of 65.64%. This period was marked by economic disruptions, policy rate fluctuations, and fiscal deficits. Over five years, despite enduring severe impacts from the Covid pandemic and economic volatilities, the fund achieved a 3-star rating with a return of approximately 71.29%, though it still underperformed against the market’s advance of 131.39%.

PACRA’s ratings underscore the varying impacts of economic cycles on investment funds, highlighting the AKD Opportunity Fund’s struggles and moderate recoveries across different periods, reflecting both the fund’s resilience and the challenges within the broader economic environment.