Press Releases / 30.10.2014

Press Release as of 30.10.2014


FinEx Cash Equivalents UCITS ETF

CJSC AK&M Rating Agency assigned an 'A++' national scale credit rating to FinEx Cash Equivalents UCITS ETF. The outlook is stable.

The 'A++' rating indicates that FinEx Cash Equivalents UCITS ETF (ISIN IE00BL3DYX33) qualifies as an extremely reliably and creditworthy financial vehicle, with the lowest imaginable risk of a delay in meeting obligations to investors.

The Fund was established by FinEx Funds Plc., an umbrella investment fund with the segregated responsibility of subfunds established in Ireland in 2009 and allowed to operate subject to EU Directive 352 'Undertakings for Collective Investment in Transferable Securities' (UCITS) issued in 2011.

The Fund's investment objective is to ensure the net asset value growth in line with the SOLTBILL Base Index (Solactive 1-3 month US T-Bill Index) comprised of USD denominated T-Bills with a time to maturity of 1 to 3 months.

The Underlying Asset (the physical asset represented by the base index) traditionally contains 9 components (issues of U.S. short-term treasury bills (T-Bills), each issue accounting for 5% to 18% of the total portfolio). The asset is rebalanced (recomposed) on a monthly basis. As of October 24, 2014, 30,000 securities of the Fund were in circulation, total assets reached RUB 31,011,761. The securities are listed on the Moscow Exchange under the FXMM ticker symbol.

The key positive rating driver for FXMM is the high credit quality of the debt securities forming the basis of the Underlying Asset, following the SOLTBILL index profitability trend as close as possible with its 100 percent physical replication. The credit rating of the U.S. treasury bills constituting the Fund's investment portfolio corresponds to the 'AAA' level (top-level creditworthiness) on the S&P international scale.

In AK&M Rating Agency's view, the high institutional status of FinEx Funds Plc.'s partners and counterparties, namely, Bank of New York Mellon (the Fund's custodian / manager), PricewatershouseCoopers (the auditor), etc., also contributes to the credit rating.

Besides, the Fund's credit rating is indirectly supported by its high investment appeal arising from the high expected return (approximately 7.5% p.a. factoring in the ruble hedge), given the short portfolio duration (ca. 0.17). We also appreciate the low minimum amount of investment and the commission fee of 0.49% including all the Fund's expenses.

 

FinEx Cash Equivalents UCITS ETF was formed in May 2014 by open-ended investment company FinEx Funds plc operating within the Irish jurisdiction and authorized by the Central bank of Ireland, located at: Block D, Iveagh Court, HarCoart Road, Dublin 2, Ireland. The Company's investment manager is Finex Capital Management LLP registered as a limited liability partnership in England and Wales (FCA registration number 550784) at: 4th Floor, 39 Dover Street, London W15 4NN, United Kingdom. FinEx Funds plc's authorized representative in Russia is Management Company FinEx Plus LLC, a member of the National Association of Securities Market Participants (NAUFOR).

FinEx Cash Equivalents UCITS ETF (ticker FXMM) was listed in Ireland and admitted to public trading among an unlimited range of investors on the Moscow Exchange on May 6, 2014. 

FinEx Funds plc's auditor is PricewaterhouseCoopers, One Spenser Dock, North Wall Quay, Dublin 1, Ireland.

 

This press release is based on the Statement of assignment of a credit rating to exchange-traded investment funds of FinEx Funds plc.

The rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Company's creditworthiness and shall not be construed as a recommendation to purchase or sell securities, or to lend funds.

AK&M Rating Agency shall not be held liable for any interpretations, inferences and consequences related to the application of results of the rating estimation procedure by any third parties.

CJSC Analysis, Consulting and Marketing Rating Agency is a leading independent national rating agency engaged in rating activities since 1993. CJSC AK&M Rating Agency is accredited by the Ministry of Finance of the Russian Federation (order no. 452 as of September 17, 2010) and is on the Central Bank of Russia's Register of Accredited Rating Agencies.

 

CJSC AK&M Rating Agency

www.akmrating.ru

Ul. Gubkina 3, Moscow, Russia

Phone no. (495) 916-70-30, fax no.: (499) 132-69-18.

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