Fitch affirms JPMIM offshore money market funds ‘AAA
Fitch Ratings has affirmed that three of JPMorgan Investment Management’s offshore money market funds are rated ‘AAAmmf’
The three funds are:
– JPMorgan Liquidity Funds – Euro Liquidity Fund affirmed at ‘AAAmmf’
– JPMorgan Liquidity Funds – Sterling Liquidity Fund affirmed at ‘AAAmmf’
– JPMorgan Liquidity Funds – US Dollar Liquidity Fund affirmed at ‘AAAmmf’
Key drivers of the ratings, according to Fitch, include:
– The funds’ overall credit quality, liquidity and diversification
– The funds’ minimal exposure to interest rate and spread risks
– The capabilities and resources of JPMAM and JPMIM as investment advisor.
The ‘AAAmmf’ rating reflects extremely strong capacity to achieve the investment objectives of preserving principal and providing shareholder liquidity through limiting credit, market and liquidity risk.
Each of the funds invests in securities rated at least ‘A/F1’ or equivalent. Any counterparties are similarly rated. Exposure to ‘F1+’ rated counterparties is limited to 10%, and for ‘F1’ to 5%.
In addition, funds rated at this level must meet daily and liquidity requirements. The funds invest at least 10% of assets in securities maturing overnight, and at least 25% of assets in securities maturing within seven days.
As of 13 January 2012 the funds had €21.5bn, £10.7bn and $73.7bn in assets under management respectively.