PACRA Maintains the Stability Rating of 786 Islamic Money Market Fund

786 Islamic Money Market Fund ("786-IMMF" or "the Fund") is categorized under a low-risk profile, with the objective of generating regular and stable returns through investment in Shariah compliant banks or Islamic windows of conventional banks and other Shariah compliant money market instruments. As of Jun'26, the Fund's Assets Under Management (AUM) stood at PKR 669.7mln, compared to PKR 447mln as of Dec'25 (the last review), reflecting a healthy growth during the review period. In terms of asset allocation, approximately 82% of the portfolio was invested in bank balances, with ~17% in Sukuks and the remainder in other eligible instruments. From a credit quality perspective, approximately 82% of the Fund's assets were placed in AA+ rated instruments, ~17% in AA rated instruments, and ~0.07% in A+ rated instruments, with the remainder in other exposures. The overall credit profile is considered sound and well-structured, with the dominant allocation to high-grade Shariah compliant instruments providing a strong investment-grade anchor to the portfolio, commensurate with the Fund's low-risk money market mandate. The Fund's Weighted Average Maturity (WAM) stood at 15 days as of Jun'26, reflecting very limited sensitivity to interest rate movements and reinforcing the Fund's strong liquidity position. This short WAM profile enables the Fund to reprice its portfolio rapidly in response to changes in the monetary policy environment, thereby protecting unit holders from adverse interest rate movements. Meanwhile, the unit holding pattern reflects a high degree of concentration, with the top 10 investors accounting for approximately 100% of the Fund's total holdings, of which ~78% are associated companies, which are typically sticky in nature, providing a relatively stable and captive investor base. This largely mitigates the concentration risk that would otherwise be associated with such a narrow unit holder profile, though the Fund's highly liquid asset allocation and short WAM further reinforce its ability to meet any redemption requirements swiftly. In terms of performance, the Fund delivered a FYTD-2026 return of 9.60%, against a benchmark return of 9.37% and a peer group average of 10.55%, reflecting an outperformance of approximately 23 basis points over the benchmark while remaining below the peer group average. The above-benchmark outcome is considered a commendable result for a low-risk Shariah compliant money market fund; however, the gap relative to the peer group average is broadly attributable to the Fund's relatively modest scale and its conservative positioning in short-duration Shariah compliant bank placements, which remains consistent with the Fund's capital preservation mandate.
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 rating.

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 (~16.53%), and Bank of Khyber (15%). The remaining shareholding of ~45% is held by other individuals and entities. The Company had AUM's of ~PKR 2,048mln at end of Jun'26. 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.