PACRA Maintains Stability Rating of 786 Smart Fund

786 Smart Fund (or the ''Fund'') is a low-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 end Jun'24, the Fund had allocated ~93.1% in TFC/Sukuks, ~1.6% in Bank placements, while remaining ~5.3% was invested in others. At end Jun-24, most investments was held in A+ rated avenues (53.5%), ~23.7% in AAA rated, ~18.8% in AA- , ~15.4% in AA rated avenues, while remaining was invested in other. The WAM of the Fund stood at 1 day at end Jun-24; limiting the exposure to credit rate risk. The duration of the Fund stood at 126 days at end Jun-24; exposing the Fund to high interest rate risk. At end Jun-24, the unit holding pattern of the Fund concentration were ~84.96% represented by top ten investors, exposing the Fund to very high level of redemption pressure. Redemption pressure is addressed through maintenance of sufficient liquidity.
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 with Asian Development Bank being its co-sponsor. The Company commenced business operations of venture capital financing in 1993. Later, in 2002, First Dawood Group in partnership with Asian Development Bank, converted the Company's business operations to asset management. 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 879mln at end of Jun'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.