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Fitch Ratings-Shanghai-17 December 2025:
Fitch Ratings has affirmed Fubon Chi-Hsiang Money Market Fund’s Fund Credit Quality Rating at ‘AA+f(twn)’ and National Fund Market Risk Sensitivity Rating at ‘S1(twn)’.
KEY RATING DRIVERS
The affirmation of the National Fund Credit Quality Rating reflects the sustained high credit quality and short maturity profile of the fund’s assets. We base the rating on the fund’s actual and prospective credit quality. Its weighted-average rating factor (WARF) suggested a rating of ‘AAAf(twn)’ at end-September 2025, but we recognise 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. As a result, we have affirmed the National Fund Credit Quality Rating at ‘AA+f(twn)’.
The affirmation of the National Fund Market Risk Sensitivity Rating is driven by the fund’s sustained low exposure to interest-rate and spread risk, as reflected in its short maturity profile.
ASSET CREDIT QUALITY
The portfolio had a WARF of 0.16 at end-September 2025, which is well within the range for a ‘AAAf(twn)’ rating. The portfolio had 94% of assets rated in the ‘A(twn)’ to ‘AAA(twn)’ categories and 6% in the ‘BBB+(twn)’ and ‘BBB(twn)’ categories.
PORTFOLIO SENSITIVITY TO MARKET RISK
The market risk factor was 0.43 at end-September 2025, implying a National Fund Market Risk Sensitivity Rating of ‘S1(twn)’. The weighted-average maturity was 132 days at end-September 2025, longer than the peer average of 118 days.
FUND PROFILE
The fund mainly invests in time deposits, commercial papers and repurchase agreements. The fund has approximately TWD77 billion of assets under management as of September 2025, representing 6.6% of domestic listed money market funds.
INVESTMENT MANAGER
Fitch considers the investment manager suitably qualified, competent and capable of managing the fund. The fund is managed by Fubon Asset Management Co., Ltd. (Fubon AM). Established in 1992, Fubon AM is a wholly owned subsidiary of Fubon Financial Holdings Co., Ltd. (Fubon FHC). Fubon FHC’s business spreads across various financial areas.
Fubon AM merged with Jih Sun Securities Investment Trust Co., Ltd. in 2025. After the merger, Fubon AM had TWD1 trillion of mutual fund assets under management as of end-October 2025, accounting for over 9% of Taiwan’s mutual fund market.
RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
The ratings are sensitive to significant changes in the fund’s credit quality or market-risk profile. A large, adverse deviation from Fitch’s guidelines for any key rating driver could lead to a rating downgrade. Specifically, the increase in ‘BBB(twn)’ rated securities and an extension of asset maturity could negatively affect the WARF. The ratings are also sensitive to deterioration in the credit quality of Taiwan’s banking and finance sector due to the large exposure to that sector.
Fitch expects the National Fund Market Risk Sensitivity Rating to remain stable due to the fund’s short maturity profile. However, Fitch would expect to downgrade the rating if interest-rate or market volatility in Taiwan structurally changed or the fund’s maturity profile was substantially extended.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
An upgrade of the National Fund Credit Quality Rating is possible if the fund follows a more conservative investment approach and the high credit quality of the underlying assets is maintained over the long term.
SOURCES OF INFORMATION
The fund manager provides Fitch with monthly information, including details of the portfolios’ holdings, credit quality and transactions. Fitch monitors the credit composition of the portfolios, the credit counterparties used by the manager and the overall market risk profile of the investments.
RATING CRITERIA
Fitch rates money market funds in Taiwan under its global Bond Fund Rating Criteria. This reflects the differences the agency perceives between Taiwanese money market funds and other Fitch-rated money market funds under its Money Market Fund Rating Criteria. Fitch regards Taiwanese money market funds as less liquid, longer dated and with lower credit quality than the money market funds in other markets. Comparisons between different national fund rating scales or an individual national and international scale are inappropriate.
Fubon Chi-Hsiang Money Market Fund; National Fund Credit Quality Rating; Affirmed; AA+f(twn)
—-; National Fund Market Risk Sensitivity Ratings; Affirmed; S1(twn)
Contacts:
Primary Rating Analyst
Li Huang,
Director
+86 21 6898 7978
li.huang@fitchratings.com
Fitch Ratings (Beijing) Limited, Shanghai Branch
Unit 3105-3106, 31/F, Azia Center No. 1233 Lujiazui Ring Road
Shanghai 200120
Secondary Rating Analyst
Minyue Wang, CFA
Director
+44 20 3530 1406
minyue.wang@fitchratings.com
Committee Chairperson
Sara Malinowsky, CFA
Director
+44 20 3530 1683
sara.malinowsky@fitchratings.com
MEDIA RELATIONS: Jack Li, Beijing, Tel: +86 10 5957 0964, Email: jack.li@thefitchgroup.com
Vivian Kam, Hong Kong, Tel: +852 2263 9612, Email: vivian.kam@thefitchgroup.com
Additional information is available on www.fitchratings.com
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Additional Disclosures For Unsolicited Credit Ratings
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