LRA Assigns Initial Stability Rating to JB Vantage Money Market Fund

The JB Vantage Money Market Fund ("The Fund") is characterized by a low to medium risk profile and was launched in 2011. The primary objective of the Fund is to provide short-term returns to its investors by investing in money market securities with a maturity of no more than 397 days. The JB Vantage Money Market Fund invests in securities rated BBB- and higher, though small portion of repo agreements remain unrated.
As of March 2024, the asset allocation of the JB Vantage Money Market Fund comprises placements in Non-Bank Financial Institutions (~34.7%), Commercial Paper (~18.6%). Trust Certificates (~14.8%), Treasury Bills and Treasury Bonds (~12.6%), and Placement in Banks (~10.4%). Additionally, the Fund has allocated ~4.6% to Repo Investments, and ~3.2% to Debentures and Other investments. The benchmark used to measure the Fund’s overall performance is the NDBIB-CRISIL. As of March 2024, the Weighted Average Maturity (WAM) stood at 157 days. The fund has recorded relatively higher returns when compared to peers. It posted a return of ~3.6% in first quarter CY 24 higher than peer average (3.3%). However, with decreasing interest rates and a WAM of 157 days, future returns are expected to decrease as witnessed in proceeding quarters as well. The Fund holds a market share of ~3% in its category.
The Fund adheres to its approved investment policy and market expectations and is expected to continue the same, going forward. Any significant changes in the asset allocation, credit risk, duration, maturity profile, or returns compared to the peers will have an impact on the fund's rating.

About the Entity
JB Financial, licensed under the Securities and Exchange Commission of Sri Lanka Act, No. 19 of 2021, has been operational since 2011 as a Managing Company of Collective Investment Schemes (Unit Trust Funds). The Company operates three funds namely, JB Vantage Money Market Fund, JB Vantage Short Term Gilt Fund and the JB Vantage Value Equity Fund. As of March 2024, the total funds under management by the AMC were ~ LKR 21 billion, with the JB Vantage Money Market Fund having assets under management of ~LKR 14 billion.
Mr. Murtaza Jafferjee, Director & Portfolio Manager, has been a part of the Sri Lankan equity market since 1994 and is the Chair of Advocate, a policy think tank. He holds a Master’s degree in Financial Economics and a Bachelor’s degree in Computer Science and Mechanical Engineering. Ms. Christine Dias Bandaranaike, is the CEO & Portfolio Manager. She has been involved in fund management since 1996, establishing JB Financials wealth management operation in 2011. She holds an MA and a BA (Hons) in Economics and has been a CFA charter holder since 1999.