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Coronation Money Market Fund rated “A-(f)” by Agusto & Co.

Rating Release

Coronation Money Market Fund rated “A-(f)” by Agusto & Co.

The rating expires on 30 September 2019.

Agusto & Co. affirms the “A-(f)” rating assigned to the Coronation Money Market Fund (‘Coronation MMF’ or ‘The Fund’). Funds rated ‘A(f)’ are deemed to have low to moderate exposure to downside risk (impairment of net asset value) in the medium term.

The Fund has conservative guidelines with respect to credit risk. The Fund adhered to its conservative guidelines with respect to credit risk with all investments falling within the investment grade rating category. During the review period, Coronation Money Market Fund invested 55% of net assets in low risk and highly liquid Federal Government of Nigeria (FGN) securities.

Coronation MMF’s primary portfolio manager has 10 years’ experience in wealth and portfolio management. However, we are concerned about the limited experience of the secondary portfolio managers in Fund management.  Nonetheless, we believe the Fund has a well-established investment process, although the Fund manager’s discipline in adhering to regulatory guidelines for WAM remains to be demonstrated.

 

Notes to release

FUND RISK rating of “A(f)” indicates a Fund with low to moderate risk of investment loss due to net asset value volatility.

The opinions expressed in this rating release do not represent investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information

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 given to Agusto & Co.

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.