Fitch Affirms 4 Invesco MMFs at 'AAAmmf'
NEW YORK -- June 26, 2013
Fitch Ratings has affirmed the 'AAAmmf' ratings assigned to the following four
money market funds (MMF) managed by Invesco Ltd.:
--Short-Term Investments Trust Government & Agency Portfolio;
--Short-Term Investments Trust Liquid Assets Portfolio;
--Short-Term Investments Trust STIC Prime Portfolio;
--Short-Term Investments Trust Treasury Portfolio
KEY RATING DRIVERS:
--High credit quality;
--Short maturity profile;
--Minimal exposure to interest rate risk;
--The capabilities and resources of Invesco as investment advisor.
The 'AAAmmf' ratings reflect the funds' extremely strong capacity to achieve
their investment objectives of preserving principal and providing shareholder
liquidity through limiting credit, market, and liquidity risk.
FUNDS OBJECTIVES AND STRUCTURE
The funds seek to maximize current income to the extent consistent with
preservation of capital and liquidity and the maintenance of a stable $1.00
per share net asset value. Collectively, the funds had assets under management
of $50.1 billion as of June 6, 2013.
The Short-Term Investments Trust STIC Prime Portfolio invests in high quality
U.S. dollar denominated obligations including commercial paper, certificate of
deposits, master and promissory notes, municipal securities and repurchase
agreement with maturities of 60 days or less.
The Short-Term Investments Trust Liquid Assets Portfolio invests in short-term
U.S. dollar denominated obligations and primarily include commercial paper,
certificates of deposits, master and promissory notes, municipal securities
and repurchase agreements.
The Short-Term Investments Trust Treasury Portfolio invests primarily in
short-term, high-credit-quality money market instruments that are direct
obligations of the U.S. Treasury and repurchase agreements backed by Treasury
The Short-Term Investments Trust Government & Agency Portfolio invests in
short-term, high-credit-quality money market instruments, including direct
obligations of the U.S. Treasury and other securities issued or guaranteed as
to principal and interest by the U.S. Government or by its agencies or
instrumentalities, as well as repurchase agreements secured by such
MARKET RISK AND LIQUIDITY PROFILE
The funds seek to manage their market risk exposures by limiting their
weighted average maturity to reset date (WAM) and weighted average life (WAL)
to 60 and 120 days, respectively, consistent with Fitch's 'AAAmmf' rating
In line with Fitch's rating criteria, the funds invest at least 10% of their
total assets in securities maturing overnight or other qualifying assets such
as U.S. Treasuries and at least 25% of their total assets in securities
maturing within seven days or other qualified assets. As of June 6, 2013, the
funds fully met these liquidity guidelines.
Invesco serves as the fund's investment adviser and is a wholly owned,
indirect subsidiary of Invesco Ltd. (NYSE: IVZ) which is rated 'A-' by Fitch.
With $729.3 billion in assets under management as of March 31, 2013, Invesco
Ltd. is a leading independent global investment manager that operates under
the Invesco, Invesco Trimark, Invesco Perpetual, and Atlantic Trust, WL Ross
and Co., and Invesco PowerShares investment centers, managing assets on behalf
of institutions and individuals worldwide through a variety of equity, fixed
income, cash management and alternative investment products.
Fitch views Invesco Ltd.'s investment advisory capabilities, resource
commitment, operational controls, corporate governance, and compliance
procedures as consistent with the ratings assigned to the funds.
RATING SENSITIVITY AND SURVEILLANCE
The ratings may be sensitive to material changes in the credit quality or
market risk profiles of the funds. A material adverse deviation from Fitch
guidelines for any key rating driver could cause the ratings to be lowered by
Fitch. Furthermore, given the funds' primary investment focus on either
domestic and foreign issuers in the financial sector or Treasury/Government
agency holdings, the ratings may be sensitive to material adverse changes in
their respective sectors globally.
Fitch receives weekly fund holdings information and other pertinent fund data
from the funds' administrator to conduct surveillance against ratings
guidelines and maintain its money market fund ratings.
Additional information is available at 'www.fitchratings.com'.
The sources of information used to assess this rating were the public domain
and Invesco Ltd.
Applicable Criteria and Related Research:
--'Global Money Market Fund Rating Criteria' (March 26, 2013);
--'U.S. Money Market Funds Dashboard' (June 18, 2013).
Applicable Criteria and Related Research:
Global Money Market Fund Rating Criteria
U.S. Money Market Funds Dashboard
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PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
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METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF
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COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM
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PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS
OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN
EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER
ON THE FITCH WEBSITE.
Gwen Fink-Stone, J.D., +1 212-908-9128
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
Greg Fayvilevich, +1 212-908-9151
Ralph Aurora, +1 212-908-0528
Brian Bertsch, +1 212-908-0549
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