Fitch affirms Ostrum SRI Money Plus Fund at ‘Af’/’S1’, reaffirming the fund’s strong credit profile and very low sensitivity to market risk. The latest rating action highlights the fund’s disciplined investment strategy, prudent portfolio management, and robust asset quality.
Fitch affirms Ostrum SRI Money Plus Fund citing strong credit quality and low market risk
Fitch Ratings has affirmed the International Fund Credit Quality Rating (FCQR) and Fund Market Risk Sensitivity Rating (MRSR) of Ostrum SRI Money Plus Fund at ‘Af’ and ‘S1’, respectively. The fund is managed by Ostrum Asset Management, one of Europe’s leading asset managers and an affiliate of Natixis Investment Managers International.
According to Fitch, the FCQR reflects the overall credit profile of the fund and its vulnerability to losses resulting from defaults, while the MRSR evaluates the fund’s sensitivity to market-related risks. The ‘Af’ rating indicates high underlying credit quality and low vulnerability to default, whereas the ‘S1’ rating denotes very low sensitivity to market fluctuations.
The rating agency conducted its assessment using actual portfolio holdings provided by Ostrum Asset Management as of 31 March 2026. Fitch also reviewed the fund’s investment policy, prospectus, and approved guidelines before completing its analysis.
A key factor supporting the ratings was the fund’s strong portfolio credit quality. Fitch noted that the portfolio’s weighted average rating factor (WARF) stood at 0.55, comfortably below the threshold associated with high-quality money market funds. Although the fund’s investment guidelines permit allocations to lower-rated, unrated, or longer-dated securities, Fitch calibrated its assessment against those guidelines and maintained the ‘Af’ rating.
The agency observed that a small portion of the portfolio is invested in securities that are not rated by globally recognised rating agencies. While Ostrum Asset Management performs internal credit assessments on such assets and considers them investment-grade, Fitch applies a conservative approach by assuming a ‘CCC’ rating for calculation purposes. Despite this treatment, the portfolio’s overall credit profile remained consistent with the assigned rating.
The fund’s market risk profile also remained exceptionally strong. Fitch reported that the fund’s proprietary Market Risk Factor (MRF) was 0.31, supporting the highest possible market risk sensitivity category of ‘S1’. This reflects the fund’s limited exposure to interest-rate and spread risks.
Supporting this assessment, 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. These measures help ensure that the portfolio remains resilient to fluctuations in interest rates and credit spreads.
The fund is authorised and supervised in France by the Autorité des Marchés Financiers and operates as a regulated money market fund. It seeks to generate returns above the capitalised euro short-term rate while integrating environmental, social, and governance (ESG investing) principles into its investment decisions. This sustainable investment approach forms a core element of the fund’s strategy, aligning financial objectives with responsible investing practices.
At the end of March 2026, the fund managed total assets of approximately USD 19.6 billion, making it one of the significant players within the European money market sector. The fund is available to both retail and institutional investors, with minimum investment requirements varying according to the share class selected.
Fitch also conducted a series of stress tests to evaluate the portfolio’s resilience under adverse scenarios. These included concentration stresses and credit-quality deterioration simulations. The agency concluded that the portfolio demonstrated strong stability, with no material deterioration in either its WARF or MRF metrics under stressed conditions.
Portfolio diversification remains another strength. More than 62% of assets were invested in certificates of deposit and commercial paper at the review date, while roughly 29% of assets were scheduled to mature within 31 to 90 days. Fitch noted that the fund did not employ leverage and maintained only minimal derivative exposure, with interest-rate swaps accounting for just 0.02% of net assets.
The rating agency also expressed confidence in the capabilities of Ostrum Asset Management. The firm oversees approximately EUR 388 billion in assets under management and provides investment solutions across fixed-income, equities, multi-asset strategies, and insurance-related mandates. Fitch stated that the manager’s operational controls, compliance framework, governance standards, and investment expertise are appropriate for the fund’s strategy and assigned ratings.
Looking ahead, Fitch said the ratings could come under pressure if there were a material decline in portfolio credit quality or a significant extension of security maturities. Conversely, the FCQR could potentially be upgraded if the fund adopts stricter credit standards and eliminates investments in unrated securities. However, the MRSR is already at the highest possible level and therefore cannot be upgraded further.
The latest decision reinforces investor confidence in the fund’s conservative investment approach, strong credit fundamentals, and disciplined risk management framework, supporting its position within the highly competitive European money market fund sector.