Moody's AAA for Lombard Odier USD
A press release entitled, "Moody's assigns Aaa-mf rating to LO Funds (CH) - Short-Term Money Market (USD)," tells us that, "Moody's Investors Service has assigned an Aaa-mf rating to LO Funds (CH) - Short-Term Money Market (USD), a short-term variable net asset value (VNAV) money market fund domiciled in Switzerland and managed by Lombard Odier Asset Management (Switzerland) SA. The Fund's primary objective is to preserve capital, provide high liquidity, and achieve a return in line with the money market rates. The Aaa-mf rating reflects Moody's view that the Fund will have a very strong ability to meet its objectives of providing liquidity and preserving capital. This view is supported by the portfolio's high credit quality and liquidity, strong asset profile, and low exposure to market risk." Moody's tells us, "The Fund invests primarily in a diversified portfolio of short-term money market instruments, which are predominantly denominated in USD and are of high credit quality at the time of purchase. The Fund also invests in currencies other than USD but these exposures are hedged against exchange risk. The Fund's weighted average maturity and weighted average life is below 60 days and 120 days respectively, which limits its exposure to market risks. The Fund, which follows the guidelines of the Asset Management Association Switzerland (AMAS) for short-term money market funds and is regulated by the Swiss Financial Market Supervisory Authority (FINMA), has to maintain at least 7.5% daily liquid assets but does not have a minimum requirement for weekly liquid assets. However, Moody's expects that the Fund will maintain a strong liquidity profile, supported by high levels of overnight and weekly liquidity." They add, "The Fund was launched in March 2010. It is managed by Lombard Odier Asset Management (Switzerland) SA, which is part of Lombard Odier Investment Managers, the asset management arm of Lombard Odier Group (Lombard Odier). Lombard Odier reported CHF 192 billion of total managed client assets as of 31 December 2022."
