Regulatory Alerts2025-07-30
Added · Updated
PACRA Performance Ranking Assessment Framework for Mutual Funds
The Pakistan Credit Rating Agency (PACRA) has established a quantitative assessment framework to evaluate and rank the historical performance of mutual funds against category peers. The methodology calculates rankings using a fifty-fifty weightage for absolute and risk-adjusted returns, applying downside deviation relative to the six-month Treasury bill yield across one-, three-, and five-year periods. Funds must operate for at least one year to qualify, with rankings published biannually on a five-star scale and subject to semi-annual surveillance to ensure consistent, bias-free investor screening.
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