Assessment Framework | Performance Ranking

Page | 6 July 2026 Performance Ranking Scale Asset Manager Rating An opinion on the fund’s historical performance in comparison to other funds in a similar category measured through a common yardstick. The ranking is purely quantitative evaluation based on historical absolute and risk-adjusted return of a fund. Scale Definition 5 – Star Very good performance. 4 – Star Good performance. 3 – Star Average performance. 2 – Star Below average performance. 1 – Star Weak performance. Rating Modifiers | Rating Actions Outlook (Stable, Positive, Negative, Developing) Indicates the potential and direction of a rating over the intermediate term in response to trends in economic and/or fundamental business / financial conditions. It is not necessarily a precursor to a rating change. ‘Stable’ outlook means a rating is not likely to change. ‘Positive’ means it may be raised. ‘Negative’ means it may be lowered. Where the trends have conflicting elements, the outlook may be described as ‘Developing’. Rating Watch Alerts to the possibility of a rating change subsequent to, or in anticipation of some material identifiable event with indeterminate rating implications. But it does not mean that a rating change is inevitable. A watch should be resolved within the foreseeable future, but may continue if underlying circumstances are not settled. Rating watch may accompany rating outlook of the respective opinion. Suspension It is not possible to update an opinion due to lack of requisite information. The opinion should be resumed in the foreseeable future. However, if this does not happen within six (6) months, the rating should be considered withdrawn. Withdrawn A rating is withdrawn on a) termination of rating mandate, b) the debt instrument is redeemed, c) the rating remains suspended for six months, d) the entity/issuer defaults, or/and e) PACRA finds it impractical to surveil the opinion due to lack of requisite information. Harmonization A change in rating due to revision in applicable methodology or underlying scale. Surveillance. Surveillance on a mutual fund ranking opinion is carried out on a periodic basis till it is formally suspended or withdrawn. A comprehensive surveillance of ranking opinion is carried out at least once every six (6) months.