RATING RELEASE
Agusto & Co. has affirmed the ‘A-(f)’ rating assigned to the Zenith Money Market Fund.
The rating expires on 14 February 2020.
The rating assigned to the Zenith Money Market Fund (‘Zenith MMF’ or ‘the Fund’) reflects the Fund’s low to moderate exposure to downside risk (impairment to the net asset value) in the medium term.
Zenith MMF has maintained low exposure to credit risk by investing in good quality assets with minimum credit rating of ‘Bbb’ in local currency. During the review period, 76% of the Fund’s assets were invested in treasury bills, on average. We expect FGN securities to remain the dominant investment vehicle in the near term. However, Zenith MMF exceeded the 90-day regulatory WAM on numerous occasions over the review period. We believe the Manager needs to improve its risk management framework, with more emphasis placed on adherence to internal and regulatory guidelines.
This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.