Rating Release
Agusto & Co. hereby affirms the A-(f) rating of Zenith Money Market Fund
The rating expires on 23 March 2024.
Agusto & Co. affirms the A-(f) rating of Zenith Money Market Fund (“ZMMF” or “the Fund”). The rating is upheld by the Fund’s low exposure to liquidity, interest rate and credit risks. However, the rating is impaired by the breaches of the 25% minimum investment in Federal Government of Nigeria (FGN) securities, the 20% single entity concentration limit stipulated by the Securities and Exchange Commission (SEC) and the frequent changes in the leadership of the fund manager in the last two years, which we believe can significantly distort the strategic direction of the Fund. We have also considered the impact of the weak macroeconomic environment, which has the potential to heighten risk exposures and pressure on investment performance.