Fitch rates TMB funds on 'strong capacity' to meet

Both are money-market funds managed by TMB Asset Management Co (TMBAM).
The ratings reflect the funds' strong capacity to achieve their investment objectives of preserving principal and providing shareholder liquidity through limiting credit, market and liquidity risk, Fitch said.
The main rating drivers are the credit quality, diversification, and liquidity of the funds' portfolios and the capabilities and resources of TMBAM as an investment adviser, it said.
As of June 30, TMBTM and TMBMF had about Bt16.9 billion and Bt14.3 billion, respectively, in total assets under management.


Both funds pursue their objectives by investing in high-quality short-term debt securities, including those of the Thai government and the Bank of Thailand, time deposits, bills of exchange, promissory notes, and repurchase agreements.
Consistent with Fitch's "AAAmmf(tha)" investment guidelines, TMBTM and TMBMF maintain high credit quality by investing exclusively in securities rated "F1(tha)" or "F1+(tha)" - with a minimum 50 per cent in the latter - by Fitch or comparable credit quality according to other rating agencies.
In keeping with the same guidelines, the funds limit their exposure to individual obligors and counter-parties. As of June 30, both funds' portfolio credit factor, which is a risk-weighted measure of the credit quality and maturity profile of the funds' portfolio securities, met Fitch's "AAAmmf(tha)" investment guidelines of 1.50 or less.
The funds seek to limit their interest-rate exposure by limiting weighted average maturity to reset date (WAMr) to 60 days, consistent with Fitch's guidelines. Although the funds do not set a limit on weighted average final maturity (WAMf), all of their investments are in fixed-rate securities resulting in similar levels between their WAMr and WAMf.
As of June 30, TMBTM's and TMBMF's WAMr was 44 and 56 days, respectively. The funds' overall maturity profiles are currently consistent with Fitch's investment guidelines of 397-day maximum maturity limit for financial institution, corporate and fixed rate-government securities.
The funds' additional investment restrictions are aimed at maintaining sufficient levels of daily and weekly liquidity to meet investors' redemption requests. In line with Fitch's investment guidelines applicable to money market funds in Thailand, the funds invest at least 15 per cent of total assets in securities maturing overnight or other qualified assets and at least 30 per cent in securities maturing within seven business days or other qualified assets.
The funds have fully met these liquidity requirements over the past 12 months, the agency said.