Gabelli U.S. Treasury Money Market Fund rating affirmed by Fitch

Traders Union
All News
Financial Institutions
Gabelli Fund rating affirmed

Highlights

Fitch affirmed Gabelli U.S. Treasury Money Market Fund's 'AAAmmf' rating, citing compliance with Rule 2a-7 and exclusive investment in U.S. Treasury securities as of August 2026.
The fund's Portfolio Credit Factor is 0.00 versus Fitch's 1.50 threshold, with weighted average maturity and life at 53 and 55 days, under Fitch's limits.
Liquidity stands at 100% for both daily and weekly assets as of the review date, exceeding minimum requirements of 25% and 50% for Fitch-rated funds.

Portfolio metrics support top rating

As reported by Fitch Ratings, the affirmation applies to the Gabelli U.S. Treasury Money Market Fund, a government money market fund managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc.

The fund complies with Rule 2a-7 and seeks to maintain a stable share price of $1.00 while providing current income consistent with capital preservation and liquidity. It invests primarily in a diversified portfolio of U.S. Treasury and government securities, and may also hold cash and use repurchase agreements, although the portfolio is currently invested exclusively in U.S. Treasury securities and does not use repos.

Fitch says the 'AAAmmf' rating reflects its review of the fund's investment guidelines, credit quality, diversification, duration parameters and liquidity profile, as well as Gabelli's asset management capabilities. The agency completed its analysis using the fund's governing documents, investment guidelines and portfolio holdings as of the end of August 2026.

As of the review date, the fund's Portfolio Credit Factor is 0.00, compared with Fitch's maximum threshold of 1.50 for a 'AAAmmf' rating. Its weighted average maturity stands at 53 days and its weighted average life at 55 days, both within Fitch's criteria limits of 60 days and 120 days, respectively.

Liquidity profile and risk limits

The fund also maintains liquidity levels well above minimum thresholds tied to the rating. Fitch says weekly liquid assets and daily liquid assets each stand at 100% as of the review date, exceeding the increased 25% daily and 50% weekly liquidity requirements applicable to Fitch-rated taxable money market funds regulated under Rule 2a-7.

Under Fitch's criteria, 'AAAmmf' rated funds seek to keep exposure to individual issuers at 10% of net asset value or less, with tighter limits for exposures above seven days in tenor. The criteria also set limits for repurchase agreement counterparties and for concentrated exposure to government agencies, while allowing minor and temporary deviations that may arise from cash outflows.

Fitch adds that its money market fund methodology also considers shareholder diversification, the manager's distribution platform and investor-related risk controls. The agency says it receives portfolio holdings data every two weeks, including security-level credit quality and maturity information, to monitor ongoing compliance with its money market fund rating criteria.

In earlier coverage, we examined State Street funds retaining Fitch 'AAAmmf' ratings after an August 2026 portfolio review.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.