 |
|
Rating on Polaris
Deli Bond Fund Affirmed
Taiwan Ratings Corp. today affirmed its 'twA+f' bond fund rating on Polaris Deli Bond Fund. The rating continues to reflect the strong credit quality and good liquidity of the fund's investment portfolio. 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. Polaris Deli Bond Fund is managed by Polaris International Securities Investment Trust Co. Ltd. (Polaris SITE), and Cathay United Bank Co. Ltd. (twAA/Stable/twA-1) acts as the fund's custodian bank. Polaris SITE's major shareholder is Polaris Securities Co. Ltd. (Polaris Securities; twBBB/Stable/twA-3). Polaris Securities is Taiwan's fifth largest integrated securities firm, with 49 branches islandwide. Polaris Securities' good position in the domestic brokerage market has enabled Polaris SITE to expand its customer base. As at September 30, 2004, Polaris SITE managed 14 mutual funds, with funds assets under management of NT$106.29 billion. It currently has a 4.15% share of the domestic mutual fund market, ranking the eighth largest securities investment trust enterprise in Taiwan. As
at Oct. 15, 2004, Polaris Deli Bond Fund had NT$20.77 billion under management,
with corporate bonds accounting for 27% of the fund's investment portfolio,
government bond repos 31%, financial debentures 24%, and time deposits
10%. The fund does not hold any structured deposits. The fund's liquid
assets (repos and time deposits) accounted for a good 41% of the fund's
investment portfolio. The credit quality of the fund's corporate bond
and financial debenture investments is generally strong, mainly consisting
of issues rated 'twA-' or above. The credit quality of the fund's counterparties
on repo and time deposits ranges from satisfactory to strong, mainly rated
'twBBB-' or above. The fund's weighted average maturity was 2.15 years
as at Oct. 15, 2004..
|
|
