Senfin Money Market Fund earns major Fitch Rating upgrade to ’’AAf’’

In a remarkable milestone, the Senfin Money Market Fund (SMMF), managed by Senfin Asset Management Ltd., (SFAM) has secured an impressive Fitch Ratings upgrade with the Fund’s National Fund Credit Quality Rating moving to “AAf(lka)”, from “BBBf(lka)”, and its National Fund Market Risk Sensitivity Rating to “S1(lka)” from “S2(lka)”, with S1 being the highest grade available. This upgrade is a significant achievement for the company and reflects the fund’s strong credit quality, liquidity, and prudent risk management, reaffirming SFAM’s growing reputation as a trusted leader in investment management. 

The SMMF has also been adjudged best unit trust, at the annual CFA Capital Market Awards in Sri Lanka bagging the gold award for the last three consecutive years, having won the Silver in 2021. These awards are the only one of their kind in the country and focus on overall governance, risk management, clarity, transparency, and investor support/service. 

SFAM Chief Investment Officer and Fund Manager Surath Perera hailed the achievement as a testament to the firm’s unwavering commitment to financial discipline, strategic asset allocation, and robust governance. “This upgrade is not just a recognition of the strength of our money market fund, but also a validation of our risk management expertise and our dedication to delivering consistent returns for investors. At a time when global and local financial markets are facing uncertainty, this rating affirms Senfin’s commitment to being a safe and reliable partner for investors seeking stability and growth,” he said. 

Why this upgrade matters 

For investors, a higher credit rating translates into lower risk, ensuring that the SMMF is backed by high-quality assets, strong liquidity, and careful risk management. This is particularly significant given the economic challenges facing emerging markets.

The key factors that contributed to this upgrade include:

• Robust asset quality

The fund mainly invests in Sri Lankan government securities, repurchase agreements backed by Sri Lankan government securities and rated time deposits with high credit quality. 

• Strong liquidity management

SFAM has maintained exceptional liquidity, ensuring investors can redeem their investments without delays or disruptions.

• Strategic risk management

The firm has consistently been conscious in managing credit and interest rate risks.

• Solid track record of returns

The fund has delivered competitive and stable returns, attracting a growing base of investors.

• Boosting investor confidence in Sri Lanka’s financial market

The Sri Lankan investment landscape has faced volatility in recent years, with currency fluctuations, inflation concerns, and shifts in global economic trends. However, with the gradual recovery from economic crisis and positive developments on debt restructuring, Fitch upgraded Sri Lanka Country Sovereign Rating to CCC+ in December 2024. Subsequently, several Sri Lankan Banks and Non-Banking Financial Institutions were also upgraded.

What’s next for SFAM?

Buoyed by this success, SFAM aims to further strengthen its position as a premier investment firm, expanding its portfolio while maintaining its commitment to risk management and transparency. “We are continuously looking at ways to enhance investor value. This upgrade fuels our drive to explore new opportunities, introduce innovative financial products, and further establish Senfin as a leader in the industry,” said SFAM Executive Director and CEO Jeevan Sukumaran.