BMO Global Asset Management (BMO GAM) has expanded the availability of the BMO Employee Benefit Stable Principal Fund as the company broadens its reach in the Defined Contribution Investment Only (DCIO) channel.
As part of this initiative, this collective trust has been renamed the BMO Stable Value Fund.
The BMO Stable Value Fund is now available to outside record-keepers and other 401(k) providers. The Fund is now accessible through the National Securities Clearing Corporation (NSCC), which offers automated trading capabilities. Prior to this change, the collective trust was available only to plan sponsors that had an existing relationship with BMO Harris Bank NA.
"As a global investment solutions provider, we are constantly striving to meet the changing needs of our clients," says Christopher Barlow (pictured), National Director of Defined Contribution Investments for BMO Global Asset Management. "This change is designed to meet the needs of more and more plan sponsors as they continue to look for easily accessible products that can provide more yield than a traditional money market fund.
"The BMO Stable Value Fund provides those plan sponsors with an attractive alternative for the growing number of plan participants who are looking for conservative investments. It also demonstrates our sustained commitment to our Stable Value and Defined Contribution Investment business."
The objective of the Fund is to maintain safety of principal while generating a level of income generally exceeding that of a money market fund. The Fund seeks to maintain a stable USD1.00 net asset value, although this is not guaranteed.
Tenured portfolio managers Don McConnell and Katie DellaMaria continue to manage this strategy using a conservative investment approach to select the underlying securities.
The BMO Stable Value Fund adds a collective trust option to BMO GAM's suite of 45 mutual funds available to US investors. This Fund is in addition to the existing family of money market funds, which includes the recently launched BMO Institutional Prime Money Market Fund as well as the BMO Prime Money Market Fund, BMO Tax-Free Money Market Fund and BMO Government Money Market Fund