Agusto & Co. has assigned a rating of “A-(f)” rating to the EDC Nigeria Money Market Fund (“the Fund or “EDC”). The rating expires 31 May 2019.
EDC Nigeria Money Market Fund (“the Fund” or “EDC MMF”) is managed by EDC Fund Management Limited (“the Manager” or “EDC”) – a wholly owned subsidiary of Ecobank Development Corporation. The Fund was launched in February 2017 and had over ₦5.5 billion in assets under management as at 28 March 2018.
During the review period, EDC MMF maintained good credit quality of underlying investments, as more than 75% of the Fund’s net assets were invested in “Aaa” (ng) credit quality FGN Securities, with the balance held in investment grade commercial papers and fixed deposits of good quality commercial banks. The Fund has no exposure to currency risk, as all the investments are denominated in Naira. EDC MMF has low exposure to interest rate risk, with the Fund’s weighted average maturity (WAM) exceeding the 90 day limit on only one occasion since launch and was corrected within three days of occurrence.
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