Ostrum SRI Money Plus Fund has retained its international fund credit quality rating (FCQR) of ‘Af’ and fund market risk sensitivity rating (MRSR) of ‘S1’, as confirmed by Fitch Ratings. These ratings evaluate the fund’s credit profile and its exposure to market risks.
The ‘Af’ rating signifies a robust underlying credit quality with minimal risk of default, while the ‘S1’ rating suggests a very low exposure to market risks. In a detailed announcement, Fitch Ratings based in London, noted that these ratings reflect an analysis of the fund’s portfolio, investment strategies, and credit guidelines.
Fitch carried out its evaluation using the fund’s actual portfolio data provided by Ostrum Asset Management as of March 31, 2026, including a review of the investment policy and other governing documents.
Key factors influencing these ratings include Fitch’s assessment of the portfolio’s composition, credit quality, diversification, and Ostrum’s asset management expertise. The fund’s FCQR is driven by its weighted average rating factor (WARF), which measures the credit ratings and maturities of the securities within the portfolio. The current WARF of 0.55 is below the 0.9 threshold, which is consistent with an ‘AAf’ implied FCQR. Given the fund’s investment guidelines that allow for flexibility in investing in lower-rated or unrated securities, Fitch has assigned an ‘Af’ rating, indicating a range of 0.9 to 2.1.
A small fraction of the portfolio can include securities that lack a rating from a recognized credit agency. Ostrum conducts detailed credit assessments on these entities, classifying them as investment-grade, and Fitch has assumed a ‘CCC’ rating for these assets in its WARF calculations, which significantly impacts the overall WARF.
The fund is authorized to invest in negotiable debt securities or short-term bonds issued by public or private entities within the OECD region, denominated in euros or other OECD currencies, with maturities of up to two years. Investment in derivatives is also permitted.
The fund’s ‘S1’ MRSR indicates minimal sensitivity to market risk. Fitch’s proprietary market risk factor (MRF) for the fund is 0.31, well below the 0.2 threshold, which aligns with the ‘S1’ rating. The fund maintains a weighted average maturity (WAM) of no more than six months and a weighted average life (WAL) of no more than 12 months, employing interest rate swaps to manage interest rate exposure, which accounted for less than 1% of the total portfolio during the review period.
Fitch assesses the legal and regulatory environment governing the fund as satisfactory. The fund operates as a fonds communs de placement under the SICAV directive and is based in France, regulated by the Autorité des Marchés Financiers as a money market fund. The fund aims to exceed the annualized performance of the capitalized euro short-term rate while adhering to environmental, social, and governance criteria in its asset selection. As of March 31, 2026, the fund’s total assets amounted to USD 19.6 billion.
The fund is accessible to both retail and institutional investors, with varying minimum investment thresholds based on the specific class of units being acquired. Fitch conducted stress tests to evaluate the fund’s sensitivity to potential shifts in portfolio credit quality, and the tests indicated no significant deterioration in the WARF or MRF, reinforcing Fitch’s confidence in the portfolio’s quality.
As of March 31, 2026, over 62% of the fund’s assets were allocated to certificates of deposit and commercial papers, with about 29% maturing within 31 to 90 days. The fund did not employ leverage at the time of the review.
Ostrum Asset Management, part of Natixis Investment Managers International, manages the fund and had EUR 388 billion in assets under management by the end of March 2026. The firm specializes in various investment strategies, focusing mainly on active fixed-income, equity, and multi-asset approaches. Fitch considers the operational controls and oversight processes at Ostrum to be appropriate for the assigned ratings.
Regarding potential rating changes, a downgrade could occur if there were significant declines in the fund’s credit quality or increases in the maturity profile of its assets. Conversely, an upgrade of the FCQR could be possible if the fund adopts a more conservative investment strategy and avoids unrated securities. The MRSR, already at the highest level, cannot be improved further.
Fitch used various sources for this analysis, including the fund’s investment policy, portfolio holdings as of March 31, 2026, and information provided by the investment manager.
