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Financial markets

Moody's Assigns Aaa-mf Rating to ESG Prime Master Fund and Feeder Funds

Strategic Insights

— 1 min read

Moody's Investors Service has assigned an Aaa-mf rating to the ESG Prime Master Fund and its three feeder funds managed by UBS Global Asset Management (Americas) Inc. The high credit quality of the Fund's investments, diversification of the portfolio, and the fund manager's disciplined investment strategy and risk management capabilities have led to this rating. The ESG Prime Master Fund has been designed to incorporate environmental, social, and governance criteria into the investment process while maintaining liquidity and preserving capital.

Key Takeaways:

  • The Aaa-mf rating reflects the high credit quality of the Fund's investments, with 70% of assets expected to be in investments receiving a top three sustainability ranking, as per UBS's sustainability ranking system.
  • The Fund's investment objective is to achieve maximum current income consistent with liquidity and preservation of capital while incorporating select ESG criteria.
  • The Fund will be managed by a seasoned portfolio management team supported by a global ESG research team of 17 sustainability analysts and operational infrastructure resources of UBS Asset Management (Americas) Inc.
  • The Portfolio Management team is responsible for developing and maintaining credit policies and procedures for money market funds and other fixed income investments.
  • The ESG Prime Master Fund operates under a "master/feeder" structure with the feeder funds investing all net investable assets in the Aaa-mf-rated ESG Prime Master Fund.
  • The Fund has a low exposure to market risk supported by its short duration and strong credit quality.

Statistics:

  • $1.1 trillion: assets under management worldwide by UBS Asset Management Division as of March 31, 2021.
  • $277 billion: assets under management by UBS Asset Management (Americas) Inc. as of March 31, 2021.
  • 17: sustainability analysts in the global ESG research team of UBS Asset Management (Americas) Inc.
  • 70%: expected allocation of assets to investments receiving a top three sustainability ranking.

Sources:

  • Moody's Investors Service, Press Release, Moody's Investors Service
  • UBS AG, Financial Statements, UBS Asset Management (Americas) Inc.
  • UBS Asset Management (Americas) Inc., Fund Documents, ESG Prime Master Fund
  • Moody's Investors Service, Money Market Funds Methodology, January 2019

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