NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has assigned a AAAkf Fund Rating to the Florida Education Investment Trust Fund FEITF Term Portfolio. The AAAkf rating reflects the FEITF Term Portfolio’s Primary Quantitative Rating (PQR) as measured by the KBRA Funds Credit Quality Rating Matrix, which is based on the credit quality of the underlying instruments that comprise the portfolio. Additionally, the fund rating is influenced by the results of the qualitative assessment of the investment advisor, PFM Asset Management LLC (PFMAM). The qualitative shadow rating (QSR) for the fund was found to be strong.
The Florida Education Investment Trust Fund (FEITF), which was launched in October 2010, is a common law trust organized under the laws of the State of Florida. Fund documents permit and provide for the creation of specialized asset portfolios within the FEITF structure. This allows FEITF to offer participants portfolios designed to meet specific investment objectives and needs of those participating. Currently, FEITF offers two portfolios: the FEITF Portfolio and the FEITF Term Portfolio, which can have multiple series with staggered maturity dates.
The FEITF Term Portfolio investment objective is to provide an investment subject to pre-set redemptions occurring from 60 days to one year that will produce the highest earnings consistent with maintaining principal at maturity and meeting the redemption schedule. The FEITF Term Portfolio seeks to return principal on the planned maturity date. There may be a penalty for early withdrawal and the NAV may fluctuate prior to maturity.
To meet the investment objective, PFMAM must abide by certain investment restrictions. The portfolios only purchase U.S. dollar denominated instruments, and the investment advisor will invest in a security only if they are satisfied that credit risk of that instrument is appropriate. Permitted investments include, but are not limited to, U.S. Government debt, repurchase agreements, commercial paper, and bank obligations.
PFMAM is the investment advisor and a member of the PFM Group. The Harrisburg, PA-based manager has been providing investment advice and portfolio management services to a broad group of government and not-for-profit organizations, corporations, pension funds and other institutions since 1980. As of year-end 2016, PFMAM reported total assets under management and advisement of $112.3 billion, with discretionary assets under management representing $70.9 billion of that total.
The ratings are based on KBRA’s Global Investment Funds Rating Methodology published on August 10, 2016.
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