Fitch Ratings has affirmed
KEY RATING DRIVERS
The affirmation of the National Fund Credit Quality Rating reflects the sustained high credit quality and short maturity profile of the fund's assets. Fitch bases the rating on the fund's actual and prospective credit quality. The fund's weighted-average rating factor (WARF) suggested a rating of 'AAAf(twn)' at
The affirmation of the National Fund Market Risk Sensitivity Rating is driven by the fund's low exposure to interest-rate and spread risk, as reflected in the short maturity profile of the fund's assets.
ASSET CREDIT QUALITY
The portfolio has high average credit quality, as measured by its WARF of 0.21 at
The fund has high industry concentration in the Taiwanese banking and finance sector, whose credit outlook is currently stable. Its top-five issuers represented roughly 43% of the fund's assets under management (AUM), above the peer average of 35%.
PORTFOLIO SENSITIVITY TO MARKET RISK
The market risk factor (MRF) of 0.38 at
FUND PROFILE
The fund invests in time deposits, commercial paper, repos and cash. The fund ranks 20th among 36 money-market funds in
INVESTMENT MANAGER
Fitch considers the investment manager suitably qualified, competent and capable of managing the fund. The fund is managed by
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
An upgrade of the National Fund Credit Quality Rating is possible if the credit quality of the underlying assets improves, the weighted-average maturity becomes shorter and the investment strategy supports the improvement in the long term.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
The ratings may be sensitive to significant changes in the fund's credit quality or market-risk profile. A large, adverse deviation from Fitch's guidelines for any key rating driver could lead to a rating downgrade. Specifically, the increase of 'BBB(twn)' rated securities and an extension of asset maturity could negatively affect the WARF. The fund's rating is also sensitive to deterioration in the credit quality of
Fitch expects the National Fund Market Risk Sensitivity Rating to remain stable due to the fund's short maturity profile. However, Fitch would expect to downgrade the rating should interest-rate or market volatility in
TCSIT, the fund manager, provides Fitch with monthly information, including details of the portfolio's holdings, credit quality and transactions, to maintain the fund ratings. Fitch monitors the credit composition of the portfolio, the credit counterparties used by the manager and the overall market-risk profile of the investments.
RATING CRITERIA
Fitch rates money-market funds in
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