Sri Lanka JB Vantage Money Market Fund rate [SL]A+mfs by ICRA

ECONOMYNEXT – ICRA Lanka has rated JB Vantage Money Market Fund a credit risk rating [SL]A+mfs with stable outlook saying the debt fund manager has adequate degree of safety for timely receipt from the investments that they have made.

JB Vantage Money Market Fund (JBMM Fund or “Fund”) is managed by JB Financial (Pvt) Ltd (JBF), (unit trust management company).

The rating is not an indication of expected returns or performance of the mutual fund but rather to have a timely receipt of payment from investment.

“Schemes with this rating are considered to have adequate degree of safety regarding timely receipt of payments from the investments that they have made,” ICRA said.

“The assigned rating is based on the JBMM Fund’s portfolio with the credit score being comfortable at the assigned rating level.

“The rating indicates ICRA Lanka’s opinion on the credit quality of the portfolio held by the fund.

“It does not indicate JBMM Fund’s willingness or ability to make timely payments to the fund’s investors.

“The rating should not be construed as an indication of expected returns, prospective performance of the mutual fund scheme, net asset value (NAV) or volatility in its returns.

Full statement reproduced below:

Rationale and Key Rating Drivers

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ICRA Lanka Limited has assigned a credit risk rating of [SL]A+mfs (pronounced as Sri Lanka A plus m f s) to the JB Vantage Money Market Fund (JBMM Fund or “Fund”) which is managed by JB Financial (Pvt) Ltd (JBF), (the unit trust management company).

Schemes with this rating are considered to have adequate degree of safety regarding timely receipt of payments from the investments that they have made. The assigned rating is based on the JBMM Fund’s portfolio with the credit score being comfortable at the assigned rating level.

The rating indicates ICRA Lanka’s opinion on the credit quality of the portfolio held by the fund. It does not indicate JBMM Fund’s willingness or ability to make timely payments to the fund’s investors. The rating should not be construed as an indication of expected returns, prospective performance of the mutual fund
scheme, net asset value (NAV) or volatility in its returns.

ICRA Lanka’s mutual fund rating methodology is based on evaluating the inherent credit quality of the fund’s portfolio. As a measure of the credit quality of a debt fund’s assets, ICRA Lanka uses the concept of “credit scores”. These scores are based on ICRA Lanka’s estimates of the credit risk associated with each
exposure of the portfolio taking into account its maturity.

To quantify the credit risk scores, ICRA Lanka uses its database of historical default rates for various rating categories and maturity buckets. The credit risk ratings incorporate ICRA Lanka’s assessment of a debt fund’s published investment objectives and policies, its management characteristics, and the creditworthiness of its investment portfolio.

ICRA Lanka reviews relevant fund information on an ongoing basis to support its published rating opinions. If the portfolio credit score meets the benchmark of the assigned rating during the review, the rating is retained. In an event that the benchmark credit score is breached, ICRA Lanka gives a month’s time to the debt fund manager to bring the portfolio credit score within the benchmark credit score. If the debt fund manager is able to reduce the portfolio credit score within the benchmark credit score, the rating is retained.

If the portfolio still continues to breach the benchmark credit score, the rating is revised to reflect the change in credit quality.

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