ICRA assigns A+mfs to JB Vantage Market Money Fund
ICRA Lanka Ltd. yesterday (25) assigned a credit risk rating of (SL) A+mfs to the JB Vantage Money Market Fund (JBMM Fund or “Fund”) which is managed by JB Financial (Pvt.) Ltd. (JBF).
According to ICRA, 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 added in a statement.
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.
JBMM Fund is an open-ended unit trust fund approved by the Securities and Exchange Commission of Sri Lanka (SEC). JBMM Fund was launched in August 2011. The fund invests in fixed and call deposits of banks and nonbanking financial institutions (NBFIs), repurchase agreements, commercial papers, trust certificates, corporate debentures, and government securities including government bonds with maturities of less than one year which can be readily convertible to cash.
The overall objective of the fund is to preserve principle and maintain liquidity through investments in only investment grade securities. The fund’s assets under management stood at Rs. 18,823 million as at 31 December 2020 with an average residual maturity of around five months.