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United Capital Money Market Fund has been assigned a A-(f) rating by Agusto & Co.

RATING RELEASE

United Capital Money Market Fund has been assigned a A-(f) rating by Agusto & Co.

The rating expires on 29 February 2020

The rating assigned to United Capital Money Market Fund (‘United Capital 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).

During the one-year review period, United Capital MMF maintained the required maximum term to maturity of less than a year for all investments but breached the regulatory 90-day limit for weighted average maturity on 14 occasions and increased the Fund’s exposure to interest rate risk. Given that there are no defined non-sovereign counterparty investment limits, we observed a significant degree of concentration in the pool of investments on a number of occasions. Nevertheless, the subscriber base was moderately diversified with no unitholder accounting for more than 6% of net assets.

Liquidity is largely managed by adhering to the regulatory floor of 25% investments in liquid FGN securities. The Fund has maintained low exposure to credit risk by investing in only investment grade securities.

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.

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.