PACRA Assigns Initial Stability Rating to 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. The Fund operates under a Shariah-compliant framework, making it suitable for investors seeking capital preservation with minimal interest rate sensitivity while adhering to Islamic finance principles. As of Dec'25, the Fund's Assets Under Management (AUM) stood at PKR 447mln, compared to PKR 100mln as of Dec'24, reflecting a substantial fourfold growth in fund size over the year. In terms of asset allocation, approximately ~99% of the portfolio was invested in bank balances, with the remaining ~1% in other eligible instruments, underscoring the Fund's near-exclusive focus on liquidity. From a credit quality perspective, ~99% of the Fund's assets were placed in AA+ rated instruments, with negligible allocations to AA and A+ rated avenues at ~0.50% and ~0.05% respectively. This highly concentrated, investment-grade credit profile reflects the Fund's conservative and Shariah-compliant investment approach. The Fund's Weighted Average Maturity (WAM) stood at 0 days as of Dec'25, indicating virtually zero sensitivity to interest rate movements and reinforcing the Fund's exceptionally strong liquidity position. 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, though the Fund's near-fully liquid asset allocation and zero-day WAM further reinforce its ability to meet any redemption requirements swiftly. In terms of performance, since its launch in October 2024, the Fund has delivered a cumulative return of 8.54% against a benchmark return of 9.95%, broadly reflecting the Fund’s conservative asset allocation and short-duration investment strategy.
The fund intends to adhere to broad money market related stipulations, reflecting it's appetite for return while managing related risks.

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 1,892mln 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.