KBRA Assigns AAAkf Fund Rating to Semper U.S. Treasury Money Market Fund

NEW YORK--()--Kroll Bond Rating Agency (KBRA) has assigned a AAAkf Fund Rating to the Semper U.S. Treasury Money Market Fund (Ticker: SEMXX). The AAAkf rating reflects the fund’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, Semper Capital Management, L.P. (Semper). The Qualitative Shadow Rating (QSR) for the fund was found to be average.

The Semper U.S. Treasury Money Market Fund is being launched on April 10, 2018. The Fund is an open-end mutual fund registered under Rule 2a-7 of the Investment Company Act of 1940. The Fund is designed to provide current income while maintaining liquidity and preserving capital. Management seeks to obtain this objective by abiding by investment guidelines consistent with that of a “government money market fund”. The Fund’s net asset value (NAV) will be priced daily at a $1.00, and the weighted average maturity and life will not exceed 60 and 120 days, respectively. Duration is also limited for fixed and floating rate securities, with maximum days to final maturity of 397 and 762 days, respectively. The Fund must also be invested so that at least 10% of total assets are available for daily liquidity, and 30% are available on a weekly basis.

The Fund will hold up to 99.5% of its total assets in cash, securities issued or guaranteed by the United States or certain U.S. government agencies or instrumentalities, or repurchase agreements that are collateralized solely by government securities or cash. Management expects to invest 100% in US Treasury securities however. Repurchase agreements entered into by the Fund may be either tri-party, or back-to-back, offsetting transactions. The latter will be evergreen repurchase agreements with the right of the counterparty to substitute similar collateral with a final maturity date within a 32-day window (+/- 16 days) of the original collateral. The counterparty may request to substitute collateral on any given day, but must be cleared by the Fund. The Fund may also put, or terminate, the repurchase agreement at any time.

Semper is the investment advisor of the Fund. The New York, NY-based manager has been providing investment advice and portfolio management services to a broad array of institutional clients, high-net worth individuals, government entities and qualified investors since 1992. As of June 2017, Semper reported total assets under management and advisement of $1.5 billion.

The ratings are based on KBRA’s Global Investment Funds Rating Methodology published on August 10, 2016.

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Kroll Bond Rating Agency
Analytical:
Peter Gargiulo, Associate Director
646-731-3341
pgargiulo@kbra.com
or
Barry Weiss, Senior Director
646-731-2475
bweiss@kbra.com

Contacts

Kroll Bond Rating Agency
Analytical:
Peter Gargiulo, Associate Director
646-731-3341
pgargiulo@kbra.com
or
Barry Weiss, Senior Director
646-731-2475
bweiss@kbra.com