PACRA Maintains Stability Rating of 786 Smart Fund

The assigned rating of 786 Smart Fund ('786SF' or the 'Fund') is a medium-risk profile Fund. The objective of the Fund is to provide competitive risk adjusted returns to its investors by investing in a diversified portfolio of long, medium and short term Shariah compliant debt instruments while taking in to account liquidity considerations. At the end December 2024, in terms of asset allocation, the Fund allocated ~75.83% in TFC/ Sukuk, ~23.07% as Bank Placements, and ~1.1% in Others. In the perspective of credit quality, the Fund had invested ~37.14% in AA rated avenues, ~23.25% in AA-, ~21.04% in A, ~16.39% in A+, and the remaining as unrated avenues, at the end-Dec'24. The Fund size at the end-Dec’24 was ~PKR 715mln. The Weighted Average Maturity (WAM) of the Fund stood at 518 days at the end-Dec'24, exposing the Fund to credit risk.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
786 Investments Limited is a public listed company and was founded in 1990. The key shareholders are First Dawood Investment Bank (15%), Bank of Khyber (15%), B.R.R. Guardian Modaraba (~13%), and Miss Tara Uzra Dawood (~18.5%). The remaining shareholding of ~45% is held by other individuals and entities. The Company had AUM's of ~PKR 815mln at end of Dec'24. 786 Investments Limited has a seven-member board including the CEO, Ms. Tara Uzra Dawood. She holds a Doctorate in judicial science from Harvard Law School. She has around two decades of professional experience in mergers and acquisitions, corporate law and investment management. She is supported by an experienced core management team. The other board members comprise four independent directors including Mr. Ahmed Salman Munir, who is also the Chairperson of the board. He has more than 30 years of progressive experience working with Fortune many companies both inside and outside Pakistan.