September 19, 2014 / 8:22 AM / 4 years ago

Fitch Rates Valoris Emergence Serenite Fund 'AAA(mar)'/'V3(mar)'

(The following statement was released by the rating agency) PARIS, September 19 (Fitch) Fitch Ratings has assigned Valoris Emergence Serenite (VEMS) a National Fund Credit Rating 'AAA(mar)' and a National Fund Volatility Rating of 'V3(mar)'. The fund is a Moroccan-domiciled FCP managed by Valoris Management (High Standards(mar)). KEY RATING DRIVERS The main drivers for the fund's credit rating are: - The high credit quality of the fund's portfolio of assets - The investment guidelines requiring at least 90% of the fund's assets be invested in bonds issued by the Moroccan government - The remaining 10% being limited to certificate of deposits issued by high-quality local banks or subsidiaries of highly rated international banks The main drivers for the fund's volatility rating are: - Fund's sensitivity to interest rates consistent with a 'V3(mar)' Volatility Rating - Contained spread duration exposure ASSET CREDIT QUALITY The fund is at least invested 90% in government bonds issued by the Kingdom of Morocco, as per its prospectus guidelines (not accounting for repos and liquidities). The remaining 10% can only be invested in highly rated or publicly owned banks' certificate of deposits. The resulting high credit quality of assets is consistent with Fitch's criteria for a 'AAA(mar)' Fund Credit Rating. The fund may also have recourse to repurchase agreements (repos) to manage its liquidity, and can be either on the lender side (with a limit of 20% exposure per repo counterparty), or on the borrower side, therefore being in leverage (authorised up to 10% by regulation). At end-August 2014, excluding liquidity representing 10% of the fund at that date, the fund was invested 91% in government bonds and 9% in banks certificates of deposits. PORTFOLIO SENSITIVITY TO MARKET RISKS The fund's interest rate sensitivity is maintained below 5.1. At end-August 2014, the fund had an interest rate sensitivity of 4.15, and 27% of total assets maturing within two years. The fund has no foreign exchange exposure and does not employ any derivative instrument. THE ADVISOR Valoris Management is the asset management arm of Capital Gestion Group for open-ended funds. It is an independent asset management company owned by its two cofounding partners and, to a lesser extent, other senior executives of the company. At end-August 2014, Valoris Management was managing MAD19.4bn worth of assets. The company employs six investment professionals, four middle- and back-officers and one compliance and control officer. Some activities such as commercial, IT, administrative and financial functions are outsourced to Capital Gestion Group as part of resource mutualisation within the group. FUND PROFILE Valoris Emergence Serenite is a Moroccan-domiciled FCP managed by Valoris Management, regulated by the le Conseil Deontologique des Valeurs Mobilieres (CDVM). As of end-August 2014, the fund's total assets stood at MAD1.1bn. RATING SENSITIVITY The ratings may be sensitive to material changes in the credit quality or market risk profiles of the fund. A material adverse deviation from Fitch's guidelines for any key rating driver could cause the ratings to be downgraded. For additional information about Fitch's bond fund ratings guidelines, see the criteria referenced below. SURVEILLANCE To maintain the fund's ratings, Fitch receives monthly fund and portfolio holdings information from the fund's administrator, Valoris Management, and conducts surveillance checks against its ratings criteria. Contact: Primary Analyst Francois Vattement, CFA Associate Director +33 1 44 29 92 75 Fitch France S.A.S 60 rue de Monceau 75008 Paris Secondary Analyst Charlotte Quiniou, CFA Director +33 1 44 29 92 81 Committee Chairperson Ralph Aurora Senior Director +1 212 908 0528 Media Relations: Christian Giesen, Frankfurt am Main, Tel: +49 69 768076 232, Email: Additional information is available at The sources of information used to assess this rating were in the public domain, and Valoris Management. Applicable criteria, 'Global Bond Fund Rating Criteria', dated 13 August 2013, are available at Applicable Criteria and Related Research: Global Bond Fund Rating Criteria here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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