OREANDA-NEWS. Fitch Ratings has affirmed Henderson Cash Fund's Fund Credit Quality Rating at 'AAA' and Fund Volatility Rating at 'V1'. The fund is managed by Henderson Global Investors.

KEY RATING DRIVERS
The affirmation of the Fund Credit Quality Rating is driven by the fund's high credit quality as measured by its weighted average rating factor (WARF) and the portfolio's rating distribution, both of which are consistent with a 'AAA' Fund Credit Quality Rating.

The affirmation of the 'V1' Fund Volatility Rating is driven by the fund's low sensitivity to interest rate and spread risks, as reflected in its short maturity profile.

ASSET CREDIT QUALITY
The fund's weighted average credit quality is high, as indicated by its WARF, which was 0.30 at end-May 2015. The fund's investment guidelines allow a minimum credit quality of 'A' at purchase.

PORTFOLIO SENSITIVITES TO MARKET RISKS
The fund has low exposure to interest rate and spread risks. Interest rate risk is managed within a maximum weighted-average maturity to reset date (WAM) of 180 days. At end-May 2015, the fund's WAM was 72 days and its weighted average life to final maturity date (which measures sensitivity to spread risk) was 94 days, resulting in a Market Risk Factor well within the 'V1' Fund Volatility Rating range. The fund does not use leverage or take foreign currency exposures.

FUND PROFILE
The fund is domiciled in the UK as an authorised unit trust regulated by the UK's Financial Conduct Authority and is UCITS compliant. The fund's objective is to provide an enhanced level of income commensurate with security of capital through investment primarily in short-term deposits, money market instruments and, at the manager's discretion, fixed interest securities. As of end-May 2015, the fund's total assets stood at GBP608m.

THE ADVISOR
Henderson, the fund's investment advisor, is a UK-based independent global asset management company and a subsidiary of the Henderson Group plc. Henderson managed GBP89.4bn of assets globally at end-March 2015, of which GBP22.2bn are fixed income assets.

RATING SENSITIVITIES
The ratings may be sensitive to material changes in the fund's credit quality or market risk profile. A material adverse deviation from Fitch's guidelines for any key rating driver could cause Fitch to downgrade the ratings. For example, if credit deterioration occurs such that the weighted average rating factor (WARF) increases beyond criteria levels for a 'AAA' Fund Credit Quality Rating, the rating may be downgraded. Potential downgrades to the Fund Volatility Rating are limited in scope, given the fund's low sensitivity to interest rate and spread risks, and the fund's investment guidelines.

To maintain the ratings, the administrator of the fund, BNP Paribas Fund Securities Services, provides Fitch with monthly information, including a detailed portfolio holdings report. Fitch closely monitors the credit composition of the portfolio and the overall market risk profile of the investments.