ICRA Lanka assigns [SL]A+mfs to JB Vantage Money Market Fund
|Instrument||Rated Amount (LKR Mn)||Rating Action|
|JB Vantage Money Market Fund||N/A||[SL]A+mfs; assigned|
Rationale and Key Rating Drivers
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.
Outlook: Not applicable
Liquidity position: Not applicable
|Applicable Rating Methodologies||ICRA Lanka’s Mutual Fund Credit Risk Rating Methodology|
|Parent/Group Support||Not applicable|
|Consolidation / Standalone||Not applicable|
About the Company
JB Financial (Pvt) Ltd
JB Financial (Pvt) Ltd (“JBF”) was incorporated in 1994, and operates as a Unit Trust Fund Manager which is licensed and regulated by the Securities and Exchange Commission of Sri Lanka (SEC). JBF is one of the leading asset management companies in Sri Lanka and had total assets under management (AUM) of LKR 24.9 Bn as in December 2020 (Including Private Wealth management portfolios). JBF acts as the investment manager to the JBMM Fund.
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 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 principal and maintain liquidity through investments in only investment grade securities. The Fund’s assets under management stood at ~ LKR 18,823 Mn as on December 31,2020 with an average residual maturity of around 05 months.
Key financial indicators: Not applicable
Any other information: None
Rating history for the last three years:
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