Fitch Ratings affirms the ‘AAA/V1+’ ratings assigned to Fortis Institutional Prime Money Market Fund, a money market fund managed by Fortis Investment Management USA, Inc.
The affirmation is a result of Fitch’s annual review of the fund and is based on the credit quality of the fund’s assets and the capabilities of Fortis Investment Management USA, Inc. as an investment advisor. As of 25 March 2009, Fortis Institutional Prime Money Market Fund had approximately $1.3 billion in total assets.
The fund’s objective is to seek as high a level of current income as is consistent with liquidity and stability of principal. The fund invests in a diversified, high-credit quality portfolio of money market securities rated at least ‘A/F1’ by Fitch or being of comparable credit quality by other global rating agencies.
The fund’s portfolio is invested in obligations of U.S. and foreign banks, asset-backed and unsecured commercial paper, repurchase agreements, as well as other money market funds. The fund accepts repurchase agreement collateral consisting only of U.S. Treasury and government agency securities overcollateralized by at least 102%.
The majority of the fund’s shareholders are managed through an omnibus account comprising approximately 75% of the fund’s total assets. As of 25 March 2009, the fund maintained a weighted-average maturity of seven days, with approximately 39% of its assets invested overnight.
The fund continues to participate in the U.S. Treasury Department’s Temporary Guarantee Program for Money Market Funds.
L.D.