CRA has assigned the credit risk rating of [ICRA]AAAmfs (pronounced ICRA triple A m f s) to Mirae Asset Savings Fund of Mirae Asset Global Investment (India) Private Limited
Mirae Asset Global Investment (India) Private Limited
| Scheme |
Rating Action
(December 2016) |
| Mirae Asset Savings Fund |
[ICRA]AAAmfs Assigned |
ICRA has assigned the credit risk rating of [ICRA]AAAmfs (pronounced ICRA triple A m f s) to Mirae Asset Savings Fund of Mirae Asset Global Investment (India) Private Limited. Schemes with [ICRA]AAAmfs rating are considered to have the highest degree of safety regarding timely receipt of payments from the investments that they have made. The ratings should not be construed as an indication of expected returns, prospective performance of the Mutual Fund scheme, NAV or of volatility in its returns.
Asset Management Company and Fund Details
Mirae Asset Global Investment (India) Private Limited, established in November 2007 is sponsored by Mirae Asset Global Investments Co. Limited, South Korea. During Q2 FY2017, the AMC had average assets under management of Rs. 5,236 crore.
Launched in March 2008, Mirae Asset Savings Fund is an open-ended debt scheme of Mirae Asset Global Investment (India) Private Limited. The investment objective of the scheme is to seek to generate returns with low volatility and higher liquidity through a portfolio of debt and money market instruments. The fund’s corpus stood at Rs. 192 crore with an average residual maturity of around 1.1 years as on November 30, 2016.
ICRA Credit Quality Rating Methodology for debt mutual fund schemes
ICRA’s mutual fund rating methodology is based on evaluating the inherent credit quality of the fund’s portfolio. As a measure of the credit quality of a debt fund’s assets, ICRA uses the concept of “credit scores”. These scores are based on ICRA’s estimates of credit risk associated with each exposure of the portfolio taking into account its maturity. To quantify the credit risk scores, ICRA uses its database of historical default rates for various rating categories for various maturity buckets. The credit risk ratings incorporate ICRA’s assessment of a debt fund’s published investment objectives and policies, its management characteristics, and the creditworthiness of its investment portfolio. ICRA reviews relevant fund information on an ongoing basis to support its published rating opinions. If the portfolio credit score meets the benchmark of the assigned rating during the review, the rating is retained. In an event that the benchmark credit score is breached, ICRA gives a month’s time to the debt fund manager to bring the portfolio credit score within the benchmark credit score. If the debt fund manager is able to reduce the portfolio credit score within the benchmark credit score, the rating is retained. If the portfolio still continues to breach the benchmark credit score, the rating is revised to reflect the change in credit quality.
