ICRA Lanka Ltd. has assigned a credit risk rating of [SL]A+mfs to the Senfin Money Market Fund managed by Senfin Asset Management Ltd. The rating indicates ICRA Lanka’s opinion on the credit quality of the portfolio held by the Fund.
Senfin Money Market Fund is an open-ended unit trust fund approved by the Securities and Exchange Commission of Sri Lanka (SEC). The Fund was launched in September 2014 and invests in fixed and term deposits of Banks and Non-Banking Financial Institutions, repurchase agreements, commercial papers, trust certificates, asset-backed securities and government securities including government bonds with maturities of less than one year which can be readily converted to cash. The Fund’s Trustee is Hatton National Bank PLC.
Senfin Asset Management Ltd. Deputy CEO Ineka Dunuwille said that the ICRA A plus rating reflects the prudent risk management policies adopted by the Fund.
The Senfin Money Market Fund invests only in securities that are rated investment grade (BBB-) or higher by Independent Rating Agencies such as Fitch and ICRA. Moreover, the Fund has set Single Group Exposure Limits, ensuring that the fund’s investments are not over-exposed to any one Group. She further states that the objective of the Fund is to provide investors with liquidity and that the Fund endeavours to provide competitive returns in the short-term fixed income space. Investors can redeem their investment at any point in time, without a penalty. The one-month yield of the Fund as at 28 February was 6.24% per annum.
Senfin Asset Management Ltd. is a fully-owned subsidiary of Senkadagala Finance PLC.