BMO Expands Stable Value Fund
A press release entitled, "BMO Global Asset Management Expands Distribution of Newly-Named BMO Stable Value Fund," says, "BMO Global Asset Management (BMO GAM) today announced expanded 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 recordkeepers 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 N.A." Christopher Barlow, National Director of Defined Contribution Investments for BMO Global Asset Management, comments, "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 release adds, "The BMO Stable Value Fund adds a collective trust option to BMO GAM's suite of 45 mutual funds available to U.S. 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." In other news, iTreasurer writes "Outflows from Prime MMFs Increasing". They write, "Companies continue to pull cash out of MMFs as they don't want to be the one to turn the lights out in October.... Companies ahead of the implementation have been seeking out places to put their cash, aside from going to government funds. Many are staying in bank deposits, although that may be short-lived, as several companies in The NeuGroup network have reported "getting the call" to take their cash somewhere else."
