Fitch Assigns 'V-NR(zaf)' Rating to Sanlam Alternative Income Fund
Fitch Ratings-Paris/London-25 February 2010: Fitch Ratings has today assigned a 'V-NR(zaf)' rating to the Sanlam Alternative Income Fund (SAIF) following a review of the agency's global bond fund rating criteria and rating scale. (For further information, please see the criteria report 'Global Bond Fund Rating Criteria', dated 10 February 2010 which is available at www.fitchratings.com.).
A 'V-NR' rating (Volatility - Not Rated) is assigned in certain illiquid markets and/or asset classes.
SAIF has an existing fund credit rating of 'AA-(zaf)' which acknowledges high portfolio credit quality relative to the highest rating in South Africa. The assigned 'V-NR' rating reflects the limited liquidity of certain underlying assets.
The fund invests primarily in cumulative, variable-rate preference shares redeemable within three-to-five years of issue. It also invests in money market funds and liquid assets with notice periods up to 90 days for at least 30% of the total portfolio.
The fund is managed by Sanlam Collective Investments (SCI) through an advisory partnership with Nodus Financial Technologies. SCI was established in 1967 as a full subsidiary of Sanlam Limited (rated 'AA-(zaf)'/Outlook Negative). At end-September 2009, SCI's assets under management totalled ZAR54bn across 62 funds. The fund is regulated by South Africa's Financial Services Board and Collective Investment Scheme Control Act.
Applicable criteria, "Global Bond Fund Rating Criteria", dated 10 February 2010, are available on Fitch's website at www.fitchratings.com.
Contacts: Nicolas Beneton, Paris, Tel: +33 1 44 299 273; Keranka Dimitrova, Tel: +33 1 44 299 280.
Media Relations: Francoise Alos, Paris, Tel: +33 1 44 29 91 22, Email: francoise.alos@fitchratings.com; Hannah Warrington, London, Tel: +44 (0) 207 417 6298, Email: hannah.warrington@fitchratings.com.
Note to Editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(zaf)' for National ratings in South Africa. Specific letter grades are not therefore internationally comparable.
Additional information is available at www.fitchratings.com.
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