(The following statement was released by the rating agency)
July 16 - Standard & Poor’s Ratings Services said today that it has assigned its highest principal stability fund rating of ‘AAAm’ to Amundi Money Market Fund - Short Term (GBP), a Luxembourg-based, British pound-denominated money market subfund managed by Amundi, the asset management arm of French banks Credit Agricole S.A. (CASA; A/Stable/A-1) and Societe Generale (A/Stable/A-1). The rating is based on Standard & Poor’s analysis of the fund’s credit quality, liquidity, market price exposure, and management.
Amundi Money Market Fund - Short Term (GBP) is a British pound-denominated, open-ended mutual fund, constituted as a subfund of a SICAV (Societe d‘Investissement a Capital Variable) under the law of the Grand Duchy of Luxembourg and in compliance with EU regulations governing UCITS (Undertakings in Collective Investments in Transferable Securities). Launched earlier today, Amundi Money Market Fund - Short Term (GBP) conforms to the European Securities Market Authority’s common European guidelines and definition for European short-term money market funds. The fund offers constant and variable net asset value share classes and will be exclusively distributed to institutional investors.
The subfund aims to offer investors a performance in excess of that of the Sterling overnight index average (SONIA), minus fees applicable to each share class, by investing in a portfolio of diversified money market instruments. The rating reflects our view of the subfund’s extremely strong capability to maintain principal stability and to limit exposure to principal losses due to credit risk.
As part of one of Amundi’s most conservative money market investment strategies, Amundi Money Market Fund - Short Term (GBP) will primarily invest in highly liquid and short-dated instruments such as commercial paper, certificates of deposit, and time deposits. The subfund may also invest in U.K. treasury bills or in repurchase agreements with highly rated counterparties. The subfund will maintain strong credit quality standards by investing all its assets in securities, or with counterparties, that Standard & Poor’s rates at least ‘A-1’ or deems equivalent. Amundi has also indicated it will manage the subfund’s weighted average maturity so that it never exceeds 60 days, to increase the portfolio’s liquidity and diminish sensitivity to changing interest rates. The custodian and administrator of the Amundi Money Market Fund SICAV is CACEIS Bank Luxembourg S.A., a wholly owned subsidiary of CACEIS (A/Stable/A-1), itself a subsidiary of CASA.
We understand that Amundi’s Paris-based cash team, in charge of the management of this new subfund, operates under strict investment guidelines and strong risk and compliance procedures to meet the subfund’s objectives. This team is also responsible for the management of four other money market funds that Standard & Poor’s rates ‘AAAm’: CA Mone Cash, Amundi TRESO AAA, Amundi Money Market Fund - Short Term (EUR), and Amundi Money Market Fund - Short Term (USD).
Amundi’s assets under management totaled EUR689 billion on March 31, 2012.
Standard & Poor’s principal stability fund ratings, identifiable by the ‘m’ suffix, are assigned to funds or pools that exhibit stable net asset values. Those funds rated ‘AAAm’ exhibit a superior ability to limit exposure to loss, and maintain a constant or rising net asset value per share at all times.
Standard & Poor’s reviews pertinent fund information and portfolio reports on a weekly basis as part of its surveillance process.
-- Methodology: Principal Stability Fund Ratings, June 8, 2011
-- Standard & Poor’s Ratings Definitions, Feb. 24, 2012