NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) has assigned a AAAkf Fund Rating to the StoneCastle Federally Insured Cash Account (FICA). The AAAkf rating reflects the Program’s Primary Quantitative Rating (PQR) as measured by the KBRA Funds Credit Quality Rating Matrix, which is based on the credit quality of the underlying instruments that comprise the portfolio. Additionally, the fund rating is influenced by the results of the qualitative assessment of the investment advisor, StoneCastle Cash Management (SCCM). The qualitative shadow rating (QSR) for the fund was found to be strong.
FICA’s investment objective is to provide a high level of current income while maintaining liquidity and providing maximum safety. To meet this objective, FICA utilizes an investment strategy built entirely around investing exclusively in deposit accounts backed by the full faith and credit of the U.S. Government.
FICA meets Federal Deposit Insurance Corp. (FDIC) requirements for agency pass-through deposit insurance coverage, as well as meeting similar requirements as defined by the National Credit Union Administration (NCUA). As such, investment in the form of deposits at FICA network banks in the amount of $250,000 or less per depositor per bank meet FDIC and NCUA requirements for deposit insurance. Thus, FICA investments (deposits) are considered backed by the full faith and credit of the U.S. Government.
Founded in 2009, SCCM is principally owned by StoneCastle Partners (StoneCastle). The parent, StoneCastle, was initially formed in 2003 as a means to help forge a connection between institutional investors and the community banking industry. As of year-end 2016, StoneCastle reports having over 60 employees, over $11.0 billion in assets ($9.6 billion in institutional cash/deposit funding, and $1.6 billion in fixed income/capital investments); 1,200 institutional accounts, and a network of over 800 relationship banks.
The ratings are based on KBRA’s Global Investment Funds Rating Methodology published on August 10, 2016.
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