Fitch Rates Colorado Core LGIP
A press release entitled, "Fitch Assigns First-Time Rating to Colorado Core LGIP" says, "Fitch Ratings has assigned an 'AAAf/S1' International Fund Credit Quality Rating (FCQR) and Fund Market Risk Sensitivity Rating to the Colorado Core Fund. The fund is offered by Colorado Surplus Asset Fund Trust (CSAFE). Morgan Stanley Consulting Group, acting through its Zephyr Group, serves as investment advisor. The Colorado Core Fund is an ultra-short-duration local government investment pool (LGIP) which seeks current income with the additional objective of capital preservation and liquidity. The fund calculates and publishes its shadow NAV daily using third-party supplied, marked-to-market pricing. The fund rounds up its shadow NAV at two decimal places for the determination of transactional share price. The fund seeks to maintain a constant $2.00 transactional share price. Should its shadow NAV breach $1.995, the board may authorize the reduction and capitalization of interest income. The board may declare a breach of stable value should the fund's shadow NAV fall below $1.990 per share. The ratings assigned to the fund do not specifically address the ability of the manager to maintain a constant NAV. The fund is expected to be open to investors beginning early February 2018. Fitch's quantitative analysis was based on the fund's stated strategy and limitations, discussions with management, and expected portfolio composition."
