PACRA Upgrades Asset Manager Rating of 786 Investments Limited.

The rating upgrade of 786 Investments Limited (“786IL” or the “AMC”) reflects its strong sponsorship profile, which contributes to financial stability, business sustainability, and enhanced market credibility, thereby strengthening the AMC’s brand positioning and investor confidence. Being a publicly listed AMC, 786 Investments Limited upholds a strong commitment to transparency and sound corporate governance, which has been a key factor supporting its rating upgrade. The AMC’s seasoned management team and well-defined organizational structure further reinforce operational stability and strategic direction. The rating upgrade also reflects its consistent progress across critical performance areas, including efficient back-office operations, diversified product offerings, improved fund performance, expanded AUM base, improved profitability and increased equity. The AMC has implemented MAC 360 software, replacing the outdated Sidat Hyder Financials system. MAC 360 now supports portfolio management, unit holder accounting, and general ledger operations, enhancing MIS efficiency and client service quality. Since Sep'24, the overall asset management industry has recorded growth of ~38% on YoY basis. In comparison, the AMC’s AUMs increased to PKR 1.8bln with market share of 0.04% as of Sep'25 (Sep'24: PKR 808mln). The AMC is currently managing two funds in major categories: the 786 Smart Fund and the 786 Islamic Money Market Fund, both of which are classified under the Shariah-compliant Income category and the Shariah-compliant money market category. The AMC has exhibited good fund performance, with both offerings ranked in the top quartile of their categories and delivering returns surpassing their respective benchmarks. Management plans to introduce specialized smart funds targeting Haj-Umrah, Women, and Gen-Z investors. Further diversification of AUM across various asset classes would strengthen the overall management quality assessment. The clientele mix of 786IL currently comprises 80% institutional and 20% retail investors. The AMC is focusing on increasing retail penetration through expanding its distribution network to enhance accessibility, operational efficiency, and customer experience. For this, the AMC is enhancing its digital infrastructure through targeted IT investments by developing mobile app which will be launched in near future. These efforts are designed to strengthen the AMC’s market position and better serve its clients. Sustaining strong fund performance and maintaining credit quality metrics will be essential for the AMC’s future rating.
On the financial profile side, the management fee of the AMC increased by 20% to PKR ~5.9mln at the end of 3MFY26 (3MFY25: PKR ~4.9mln). The profitability of the AMC increased to PKR ~12.7mln at the end of 3MFY26 (3MFY25: PKR ~8.1mln). The profitability has been increased on the back of net realized gain on investments. The AMC's equity stood at PKR ~285mln as of 3MFY26 (3MFY25: PKR ~272mln), meeting the minimum regulatory requirement. 786IL is a publicly listed Asset Management Company (AMC) established in Pakistan. It operates under the umbrella of the First Dawood Group, a prominent and diversified conglomerate with a strong foothold in the financial and industrial sectors through its association with leading enterprises such as Dawood Hercules Chemicals, Dawood Yamaha, Dawlance, and Descon Engineering.
The rating is dependent on the materialization of strategy to enhance AUM's and the market position of the AMC. Meanwhile, maintaining strong fund performance and diversifying the fund slate is important. Upholding high governance standards and strengthening risk management is crucial for the rating.

About the Entity
The majority shareholding of the 786 Investments Limited is held by the Dawood Group through Miss Tara Uzra Dawood (29.90%), B.R.R. Guardian Modaraba (16.53%), and the Bank of Khyber (15.00%). The remaining shareholding of ~38.57% is held by other individuals and corporate entities. The AMC's Board of Directors currently comprises seven board members out of which, three independent and three are non-executive. The Chairperson, Mr. Ahmed Salman Munir, possesses more than 31 years of professional experience in the banking industry.