Fitch affirms the UPAMC James Bond Money Market Fund at ‘AA+f(twn)’ and ‘S1(twn)’.

Fitch affirms the UPAMC James Bond Money Market Fund at ‘AA+f(twn)’ and ‘S1(twn)’.

Fitch Ratings has affirmed taiwan-established UPAMC James Bond Money Market Fund Credit quality rating of the National Fund at ‘AA+f(twn)’ and Market risk sensitivity rating of the National Fund at ‘S1(twn)’.


The National Fund’s Credit Quality Rating reflects the high credit quality and short maturity profile of the fund’s assets. Fitch bases the rating on the actual and prospective credit quality of the fund. The Weighted Average Rating Factor (WARF) suggested a ‘AAAf(twn)’ rating from February 2022, but Fitch recognizes that the fund manager may increase exposure to lower quality securities or extend the maturity profile (within applicable regulatory limits), which could, individually or in combination, lower aggregate credit quality. Therefore, Fitch has affirmed the rating at ‘AA+f(twn)’.

The National Fund’s Market Risk Sensitivity Rating is driven by the fund’s very low exposure to interest rate and spread risk, as reflected in its short-weighted average and individual asset maturity profiles.


The fund displays high credit quality with 100% of its assets rated ‘A(twn)’ to ‘AAA(city)’ range. The WARF was 0.13 as of September 2022which is within the ‘AAAf(twn)’ rating range of 0.0-0.3 and lower than its peer average of 0.14.

The fund has a high industry concentration in Taiwan’s banking and financial sector, whose credit outlook is stable. The top five issuers account for 52% of the fund’s assets under management, above the rated peer average of 35%.


The market risk factor (MRF) was 0.16 at end of September 2022, lower than the peer average of 0.2, implying a national fund market risk sensitivity rating of ‘S1(twn)’. The weighted average maturity of the fund is 95 days from September 2022more than the pairwise average of 64 days.


The fund invests primarily in time deposits, commercial paper and repurchase agreements. The background is approx. TWD28 billion of assets under management from September 2022. Ranked eighth out of 36 money market funds in taiwanwhich represents 3.7% of the national market of exchange-traded funds.


Fitch considers the investment manager to be suitably qualified, competent and capable of managing the fund. The fund is managed by Uni-President Asset Management Co., Ltd. (UPAMC). Founded in 1992, the investment manager has long experience in managing investment funds, including money market funds. More than 50% of UPAMC’s shares are in the hands of uni-president cluster (President Securities Corporation: 42.46%, President Chain Store Corp.: 7.6%; Uni-President Enterprises: 1.6%).

UPAMC is ranked 15th out of 39 asset managers in taiwan and has TWD88 billion investment funds under management, which represent 1.9% of the from taiwan mutual fund market October 2022. Senior management and investment professionals are experienced with an average tenure of more than 10 years.


Factors that could, individually or collectively, lead to a positive rating action/upgrade:

An upgrade to the National Fund’s Credit Quality Rating is possible if the credit quality of the underlying assets improves, the weighted average maturity is shortened and the investment strategy supports long-term improvement.

Factors that could, individually or collectively, lead to a negative/downgrade rating action:

Ratings may be sensitive to significant changes in the fund’s credit quality or market risk profile. A large adverse deviation from Fitch’s guidance for any key rating factor could lead to a rating downgrade. Specifically, the increase in ‘BBB(twn)’ rated securities and an extension of asset maturity could negatively affect WARF. The fund’s rating is also sensitive to deterioration in the credit quality of from taiwan banking sector due to the large exposure to that sector. In all four of Fitch’s stress tests, WARF indicated a credit quality rating of ‘AAAf(twn)’.

Fitch expects the National Fund’s Market Risk Sensitivity Rating to remain stable due to the fund’s short maturity profile. However, Fitch would expect to lower the rating if interest rate or market volatility in taiwan structurally changed or the fund’s maturity profile broadened substantially.

UPAMC provides Fitch with monthly information, including details of portfolio holdings, credit quality and transactions, to maintain the fund’s ratings. Fitch monitors the credit composition of the portfolio, the credit counterparties used by the servicer, and the overall market risk profile of the investments.


Fitch rates money market funds on taiwan under its global Bond Pool Qualification Criteria. This reflects the differences the agency perceives between Taiwanese money market funds and other money market funds rated by Fitch based on its money market fund rating criteria. Fitch views Taiwan money market funds as less liquid, older, and of lower credit quality than money market funds in other markets. Comparisons between different national fund rating scales or an individual national and international scale are inappropriate.


Entity / Debt



UPAMC James Bond Money Market Fund

Natl Fund Cr Qual




national sensitivity

S1 (city)


S1 (city)


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