Fitch Rates Royal Sterling AAAmmf
A press tells us that, "Fitch Ratings has assigned Royal London Asset Management Bond Funds plc - Royal London Sterling Liquidity Money Market Fund a 'AAAmmf' rating." It explains, "The 'AAAmmf' rating is driven by the fund's high credit quality and diversification, low exposure to interest-rate and spread risk, and high levels of daily and weekly liquid assets. The rating also reflects the adequate capabilities and resources of Royal London Asset Management Limited (RLAM) as investment manager.... The fund seeks to maintain a high credit quality by investing only in high-quality securities and money-market instruments and deposits with credit institutions. At end-October 2019, all the portfolio assets were rated at least 'F1' or its equivalent by other rating agencies. Moreover, 60% of the fund's assets are rated 'F1+' or its equivalent by other rating agencies. The fund has a high direct exposure to the UK government." Fitch adds, "The fund has low exposure to interest-rate movements with a weighted average maturity at 45 days as of end-October 2019, compared with a maximum level of 60 days at the 'AAAmmf' rating level.... The fund seeks to maintain in its portfolio at least 10% of daily maturing assets and 30% of weekly maturing assets. As at end-October 2019, the fund had 27% of its assets invested in overnight deposits and 32% of its assets invested in UK gilts with a residual maturity below 397 days, resulting in very high levels of overnight and weekly liquidity." Finally, the release adds, "The fund is a sub-fund of Royal London Asset Management Bond Funds plc, an Ireland-domiciled investment company with variable capital, registered and authorised by the Central Bank of Ireland. The fund is classified as low volatility net asset value fund under the European money-market fund regulation. As of end-October 2019, the fund's total assets under management stood at GBP2.04 billion. RLAM was established in 1988 and is part of the Royal London Group, a mutual society. Royal London is the UK's largest mutual life and pensions company. RLAM managed a total of GBP129.5 billion assets as of end-June 2019, of which approximately 50% were in fixed income and 10% in cash products."
