Fitch Rates Western, HSBC MMFs
Fitch Ratings announced AAAmmf money fund ratings on two funds recently. A release entitled, "Fitch Assigns New Ratings to Two New Western Asset Money Market Funds," explains, "Fitch Ratings has assigned a 'AAAmmf' rating to the Western Asset Premier Institutional Liquid Reserves fund and the Western Asset Premier Institutional Liquid Reserves, Ltd. fund. Both funds are managed by Legg Mason Partners Fund Advisor, LLC (LMPFA) and are subadvised by Western Asset Management Company (Western Asset), which provides day-to-day portfolio management. Both LMPFA and Western Asset are wholly owned subsidiaries of Legg Mason, Inc. (NYSE: LM)." It says, "The main drivers of the rating are: The funds' overall credit quality and diversification; Low exposure to interest rate and spread risk; Holdings of daily and weekly liquid assets consistent with shareholder profile and concentration; Maturity profile consistent with Fitch's 'AAAmmf' rating criteria; and, The capabilities and resources of Legg Mason and Western Asset." The release adds, "The funds' investment objectives are to provide shareholders with liquidity and as high a level of current income as is consistent with preservation of capital. The Western Asset Premier Institutional Liquid Reserves fund is a US-incorporated MMF and the Western Asset Premier Institutional Liquid Reserves, Ltd. fund is a Cayman Islands-incorporated MMF. Both funds are feeder funds that invest all of their investable assets in the Western Asset Liquid Reserves Master Portfolio." Another release, entitled, "Fitch Assigns 'AAAmmf' Rating to HSBC U.S. Government Money Market Fund," tells us, "Fitch Ratings has assigned a 'AAAmmf' rating to the HSBC U.S. Government Money Market Fund. The main drivers of the rating are: The fund's overall credit quality and diversification; Low exposure to interest rate and spread risk; Holdings of daily and weekly liquid assets consistent with shareholder profile and concentration; Maturity profile consistent with Fitch's 'AAAmmf' rating criteria; and, The capabilities and resources of HSBC Global Asset Management (USA) Inc. as the fund's investment advisor." It adds, "The investment objective of the fund is to provide shareholders with liquidity and as high a level of current income as is consistent with the preservation of capital. The fund is a government MMF managed in accordance with Rule 2a-7 under the Investment Company Act of 1940, as amended."
