PACRA Maintains Stability Rating of 786 Smart Fund

786 Smart Fund ("786SF" or the "Fund") is a medium-risk, Shariah-compliant income Fund. The objective of the Fund is to provide competitive, risk-adjusted returns to its investors by investing in a diversified mix of long, medium, and short-term Shariah-compliant debt instruments, while taking into account liquidity considerations. As of Dec'25, the Fund's Assets Under Management (AUM) declined to PKR 1,445 million from PKR 1,514 million as of Jun'25, reflecting a marginal decrease of approximately 4.6% during the review period. In terms of asset allocation, 57.0% of the portfolio was invested in corporate sukuks, 39.4% was placed in bank deposits, while the remaining 3.5% was allocated to other instruments. From a credit quality perspective, the Fund's investments were distributed across multiple rating categories, with 36.3% allocated to AA+ rated avenues, 25.3% to AA rated instruments, 16.3% to A+ rated avenues, and 11.8% to A rated instruments, while the remaining exposure was held in other avenues. This diversified credit allocation reflects a balanced approach towards yield generation and risk management. The Fund's Weighted Average Maturity (WAM) stood at 336 days as of Dec'25, indicating moderate exposure to interest rate sensitivity and credit risk. In terms of performance, the Fund reported a 12-month trailing return of 9.25% as of Dec'25, which remained below both the benchmark return of 9.30% and the peer average return of 10.00%.
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 Miss Tara Uzra Dawood (29.9%), B.R.R. Guardian Limited (19.99%), and Bank of Khyber (15%). The remaining shareholding of ~35.11% is held by other individuals and entities. The Company had AUM's of PKR 1,893mln at end of Dec'25. 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.