Rating Release
Agusto & Co. assigns a fund credit quality rating of “A+(f)” and fund volatility rating of “FV5′ to Coronation Fixed Income Fund.
The rating expires on 31 August 2021.
Agusto & Co assigns A+(f) credit quality and FV5 volatility ratings to the Coronation Fixed Income Fund (“CFIF” or “the Fund”). The rating reflects the Fund’s adequate investment process, low exposure to credit and liquidity risks and moderate exposure to interest rate risk driven by investments in long dated instruments. In the review period (July 2019 – June 2020), CFIF maintained a conservative investment approach with a significant share of net assets held in Federal Government of Nigeria (FGN) securities, which we consider to be of ‘Aaa’ credit quality in local currency. However, the Fund had some investments in counterparties that fell below Agusto & Co’s investment grade credit quality. In addition, CFIF’s portfolio had an average duration of 6.03 years for the review period, which is above the 2.33 years reported in the prior review period