LANKA RATING ASSIGNS


Initial Fund Stability Rating to

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Astrue Money Market Fund

20-Aug-25

01

Applicable Criteria

Assessment Framework | Stability Rating Criteria | Jun-24

02

Related Research

Sector Study | Mutual Funds | Stability | Feb-25


03

Analyst

Imran Iqbal | imran@lra.com.lk
+94 114 500099 | www.lra.com.lk

PRESS
RELEASE

DISCLAIMER

This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to LRA

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Rating Type Stability
Current
(20-Aug-25)
Action Initial
Rating A+(f)
Outlook Stable
Rating Watch -


Astrue Money Market Fund ("the Fund") was launched in April 2024 and the primary object of the Fund is to maintain the Net Asset Value ("NAV") either constant at par (net of earnings) or at the value of the Unit Holders' initial capital plus earnings. The Fund is characterized by a low to medium risk profile with high capital preservation potential. The Fund has the mandate to invest in (i) Government Securities of maturity of less than 397 days; (ii) Quoted/Unquoted rated corporate debentures, securitized papers and corporate debt securities; (iii) Repurchase Agreements; (iv) Deposits in Licensed LCBs, LSBs and LFCs. However, the Fund is expected to primarily stay invested in Government Securities to maintain steady earnings. As of June 2025, the Fund’s asset allocation predominantly is in Treasury Bills, Reverse Repos backed by Government Securities and small portion in Treasury Bonds. Combined, these three asset classes comprise ~73.1% of fund placements. In addition, the Fund holds exposures to Non-Bank Financial Institutions (~13.4%), Trust Certificates (~6.7%), and Commercial Papers (~6.7%), with a minor allocation to savings Account balances in Banks (~0.1%). The Fund reported a return of ~2.2% during the last quarter of FY25, which was broadly in line with the peer average of ~2.1%. In terms of credit risk, majority of the Fund’s net assets are allocated to Government Securities, minimizing credit risk. Remaining investments are in BBB- or higher rated instruments and financial institutions. The Fund exhibits an elevated investor concentration, which may result in redemption risk. The Funds has a Weighted Average Maturity ("WAM") of 293 days, exposing it to market risk.
The Fund will continue to invest in accordance with its approved investment policy and market expectations. The Fund aims to increase its WAM to secure prevailing yields levels in anticipation of potential decline in interest rates. Any material changes in the Fund's asset allocation, credit risk profile, duration, or maturity structure may have implications for the assigned rating.
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About the Entity

Asset Trust Management (Pvt) Ltd, established in 2008, is a licensed portfolio management company regulated by the Securities and Exchange Commission of Sri Lanka. The Company offers investment management services through Unit Trusts and Private Wealth portfolios, providing clients exposure to both fixed income and equity instruments. The Company operates within the domestic investment management industry, catering to a limited client base that includes local and foreign individuals, corporates, and institutional investors. The Company’s market share remains very small, accounting for approximately ~0.57% of total Assets Under Management in Sri Lanka. The Company’s shareholders includes SAFE Holdings (Pvt) Ltd with majority stake (~51%), followed by Wealth Lanka Management (Pvt) Ltd (~20%), Ceylinco General Insurance Ltd (~10%), Richard Peiris & Company PLC (~10%) and Lalan Rubber Holdings (Pvt) Ltd (~10%). These established shareholders provide a degree of operational support and strategic alignment.

Lanka Rating Agency Limited

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