In FY25, the KMI-30 Index gained ~46%, supported by macroeconomic stabilization, a cumulative 1,100 bps monetary easing cycle, and improved investor sentiment. Islamic Asset Allocation Funds benefited from the equity market rebound while preserving portfolio defensiveness through Shariah-compliant cash placements and fixed-income instruments. Key macro triggers included the IMF’s USD 1.0B disbursement, USD 1.4B RSF approval, and SBP reserves rising to USD 14.51B, exceeding program benchmarks, alongside a stable PKR and sustained foreign inflows, which further reinforced market confidence. Within the Islamic Asset Allocation category, PACRA rated two out of twelve peers, with an average FY25 return of ~29%. The NBP Islamic Sarmaya Izafa Fund, rated 3-Star, posted a ~48.85% 1-year return, outperforming the KMI-30 due to its active asset allocation and participation in key market sectors. As of June 2025, the Fund maintained ~77.4% exposure to equities, ~20.8% in cash placements, ~0.2% in Sukuks, and ~1.6% in other assets. Sectoral allocations were concentrated in Oil & Gas Exploration (27.4%), Cement (10.7%), Textiles (5.7%), Fertilizers (5.4%), and Islamic Commercial Banks (4.5%), with 23% allocated across other sectors. The Fund’s strategy remained rooted in disciplined Shariah compliance and tactical asset rebalancing, enabling it to capture upside while managing interim volatility.

Over the past three years, Pakistan’s capital markets faced volatility from IMF delays, fiscal deficits, political uncertainty, and inflation fluctuations. Despite this, the Islamic asset allocation category showed resilience, with PACRA ranking two funds out of twelve. The category’s average return was ~80%, with the top fund returning ~208%. NBP Islamic Sarmaya Izafa Fund earned a 3-star rating, delivering a 3-year return of ~153.40%. The Fund focused on growth while maintaining liquidity buffers, with ~77.4% in equities, ~20.8% in cash, ~0.2% in Sukuks and ~1.6% in other assets. Sectoral allocations were concentrated in Oil & Gas Exploration (27.4%), Cement (10.7%), Textiles (5.7%), Fertilizers (5.4%), and Islamic Commercial Banks (4.5%), with 23% allocated across other sectors. The Fund’s strategy remained rooted in disciplined Shariah compliance and tactical asset rebalancing, enabling it to capture upside while managing interim volatility.

Over the past five years, Pakistan’s capital markets faced structural and macroeconomic challenges, including delays in the IMF program, fiscal imbalances, political instability, and volatility in policy rates and inflation. Currency depreciation, a widening current account deficit, and fluctuating interest rates impacted investor sentiment and liquidity. Despite this, the Islamic asset allocation category showed resilience, with PACRA ranking two funds out of twelve. The category’s average return was ~124%, with the top fund returning ~202%. NBP Islamic Sarmaya Izafa Fund earned a 3-star rating, delivering a 5-year return of ~180.03%. The Fund focused on growth while maintaining liquidity buffers, with ~77.4% in equities, ~20.8% in cash, ~0.2% in Sukuks and ~1.6% in other assets. Sectoral allocations were concentrated in Oil & Gas Exploration (27.4%), Cement (10.7%), Textiles (5.7%), Fertilizers (5.4%), and Islamic Commercial Banks (4.5%), with 23% allocated across other sectors. The Fund’s strategy remained rooted in disciplined Shariah compliance and tactical asset rebalancing, enabling it to capture upside while managing interim volatility.