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Fitch Affirms Hedged Mutual Fund Fee Trust 2003-2.

NEW YORK -- As a result of Fitch Ratings' review process, Fitch affirms and assigns a Stable Rating Outlook to the notes issued by Hedged Mutual Fund Trust 2004-1, (HMFFT 2003-2) as follows:

--$1,594,734 class 1 floating rate notes at 'AA-';

--$1,359,165 class 2 fixed rate notes at 'AA-';

--$1,526,441 class 3 floating rate notes at 'AA'.

The notes are collateralized by HMFFT 2003-2's participation rights to receive certain asset-based sales charges (ABSC or 12b-1 fees), contingent deferred sales charges (CDSC), and shareholder servicing fees (SSF) for the distribution and servicing of class B shares sold to mutual fund investors between Nov. 1, 2002 and Jan. 31, 2003. The class B shares represent a diversified pool of 284 U.S. and Canadian mutual funds from six fund families. Additional assets supporting the transaction include an interest rate cap agreement for the benefit of class 1 and class 3 noteholders and a series of NASDAQ 100 and Standard & Poor's 500 (S&P 500) index put options assigned and purchased at deal closing (the put options are now expired). The put options, however, have expired.

The affirmation is the result of Fitch's analysis of the performance of the transaction. As of the March 2009 trustee report, the class 1 and 2 notes had amortized down by over 96% and the class 3 notes had amortized down by over 98%. The transaction matures in March 2011, leaving nearly two years to finish paying down the balance of the notes. In its analysis, Fitch stressed the transaction by assuming a 50% slowdown in amortization, which demonstrated that the notes would still pay off fully by maturity.

The rating of the notes addresses the likelihood that investors will receive timely payments of interest and principal in accordance with the terms of the legal documents.

Additional transaction information and historical data are available on the Fitch Ratings web site at

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
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Publication:Business Wire
Date:May 22, 2009
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