BAKU, Azerbaijan, November 13. Fitch Ratings has affirmed the 'AAAmmf' rating of Georgia Fund 1 Prime, the highest rating under the agency's money market fund scale.
The rating indicates an extremely strong capacity to preserve principal and provide liquidity by limiting credit, market and liquidity risks.
According to Fitch, the rating reflects the fund's investment guidelines, credit quality, portfolio diversification, maturity parameters and liquidity profile, as well as the capabilities of its investment manager.
The fund's Portfolio Credit Factor (PCF), a risk-weighted measure of the credit quality and maturity profile of its securities, stood at 1.25. This is below the maximum threshold of 1.50 required for funds rated 'AAAmmf'.
The fund's weighted average maturity (WAM) was 50 days, while its weighted average life (WAL) stood at 80 days, compared with Fitch's respective limits of 60 and 120 days.
The fund also maintained daily liquid assets at 22% of total assets and weekly liquid assets at 34%. Both figures exceeded Fitch's minimum requirements of 10% and 30%, respectively.
Georgia Fund 1 Prime is a local government investment pool (LGIP) operating in a manner similar to a money market fund. It is managed by Federated Investment Counseling, a wholly owned subsidiary of Federated Hermes, Inc.
As of June 30, 2026, Federated Hermes had $884 billion in assets under management, according to Fitch.
The agency added that a material and sustained deterioration in the fund's credit quality, market risk or liquidity profile could lead to a downgrade.
Notably, Georgia Fund 1 Prime is part of the Local Government Investment Pool (LGIP) Trust, administered by the Georgia Office of the State Treasurer. The trust comprises four investment offerings designed for different categories of public-sector participants, including local governments and state agencies. These include Georgia Fund 1, the primary liquidity pool; Georgia Fund 1 Prime, which provides local governments with an opportunity to seek higher yields; Georgia Fund 1 Plus, which manages state and state agency funds; and Georgia Extended Asset Pool Plus, which focuses on principal preservation through target-maturity investments.
As of March 31, 2026, the four offerings held combined assets of approximately $66 billion. Georgia Fund 1 accounted for $36.9 billion, Georgia Fund 1 Plus for $26.6 billion, Georgia Extended Asset Pool Plus for $1.4 billion, and Georgia Fund 1 Prime for $1.1 billion. The Georgia Office of the State Treasurer reported total assets under management of $70.5 billion across its investment portfolios, including separately managed accounts.
A 2025 survey by the Public Funds Investment Institute found that state-sponsored local government investment pools across 32 US states held a combined $703 billion in assets at the end of 2025. The survey covered 47 portfolios, with an average portfolio size of $14.9 billion. Georgia's four-pool system therefore represents a substantial investment structure within the US public-sector investment market.
