 |
|
Ratings
on JF (Taiwan) First Bond Fund and JF (Taiwan) Bond Fund Both Affirmed.
Taiwan Ratings Corp. today affirmed its 'twAA-f' bond fund rating on both JF (Taiwan) First Bond Fund and JF (Taiwan) Bond Fund. The ratings continue to reflect the very strong credit quality and liquidity of the funds' investment portfolios. A bond fund rating, identified by the 'f' subscript, reflects the level of protection against losses from credit defaults, and is primarily based on an analysis of the credit quality of the fund's investment portfolio. The rating also takes into account the fund’s liquidity, diversification, maturity profile, and management to reflect the characteristics of domestic bond funds in Taiwan. The rating is not directly comparable with a debt rating due to differences in rating criteria, and does not comment on the market price stability of the fund’s assets. JF Asset Management (Taiwan) Ltd., a member of JP Morgan Chase & Co. (rated A+/Stable/A-1 by Standard & Poor's Ratings Services), manages JF (Taiwan) First Bond Fund and JF (Taiwan) Bond Fund. JP Morgan Chase is one of the world's leading asset management companies. Established in September 1992, JF Asset Management (Taiwan) was the first foreign asset management firm to enter Taiwan's mutual fund market. As at the end of September 2004, JF Asset Management (Taiwan) administered 18 mutual funds and had assets under management totaling NT$120.2 billion. In terms of total funds size under management, the company ranks the fourth largest securities investment trust enterprise in Taiwan, with a market share of 4.7%. As at Oct. 15, 2004, JF (Taiwan) First Bond Fund had NT$27.38 billion of assets under management. Repos accounted for 39% of the fund's total assets, straight corporate bonds 36%, time deposits 10%, structured deposits 10%, and financial debentures 5%. The fund’s liquid assets (repos and time deposits) accounted for a strong 49% of the fund's investment portfolio; while structured notes represented less than 3% of the fund’s assets. JF (Taiwan) First Bond Fund invests in some unsecured corporate bonds, but their credit quality is considered very strong in the context of domestic market. The fund also has a minimum rating requirement of 'twAA-' for unsecured corporate bonds in which it invests. Likewise, the credit quality of the fund’s repo counterparties is satisfactory, mostly consisting of securities or counterparties rated 'twBBB' or above. The fund also complies with the Securities and Futures Bureau's requirement that term deposits be placed in banks rated 'twBBB-' or above. Overall, Taiwan Ratings views the credit quality of JF (Taiwan) First Bond Fund as superior. As at Oct. 15, 2004, the weighted maturity of the fund's portfolio was short, standing at 1.22 years. Meanwhile,
JF (Taiwan) Bond Fund had NT$24.92 billion of assets under management
as at Oct. 15, 2004. Repos accounted for 36% of the fund's total assets,
straight corporate bonds 33%, time deposits 19%, structured deposits 7%,
and financial debentures 4%. The fund does not invest in any structured
notes. Most of the fund's portfolio consists of bonds or counterparties
with very strong credit quality. Liquid assets accounted for 55% of the
fund's investment portfolio. Overall, Taiwan Ratings views the credit
quality and liquidity of JF (Taiwan) Bond Fund as superior. As at Oct.
15, 2004, the weighted average maturity of the fund's portfolio was also
short at 1.36 years.
|
|
