Vista Capital Management, Chase Manhattan Bank's brokerage unit, has contracted with Standard & Poor's Corp.'s rating group to monitor some of the banking company's proprietary money market funds.
Initially, the New York-based ratings agency will monitor eight of the 30 products in the Vista Family of Mutual Funds.
S&P will assess the funds' adherence to investment objectives, such as asset stability and credit quality. It will also monitor the net asset value and perform sensitivity analyses on each fund to determine its susceptibility to interest rate increases, price increases, and redemptions.
Although S&P has rated money market funds for a decade, this is the first time it has been asked to monitor compliance with investment guidelines, according to a Chase executive.
