April 7, 2014
/PRNewswire/ -- The Bank of New York Mellon (the "Bank") is accepting new investors into the Mellon Stable Value Fund, a bank-sponsored collective investment fund for defined contribution benefit trusts*.
The Fund stopped accepting new investors in
due to an industry wide shortage of investment contracts, which the Fund uses to help insulate investors from market volatility. Shortly thereafter, the Fund began accepting new investors with
or less, and in
the Fund allowed new investors with
or less, although some larger investments were accepted on a case-by-case basis.
Associates of the
-based stable value division of Standish Mellon Asset Management Company LLC ("
"), a fixed income manager for BNY Mellon, manage the Fund in their capacity as dual officers of The Bank of New York Mellon.
"We are pleased to see the amount of new stable value investment capacity that has been added to our industry over the past two years," said
, chief investment officer of
stable value division. "The Bank of New York Mellon will continue to manage the Mellon Stable Value Fund in a prudent manner for plan participants, matching new investment demand with new product investment capacity."
The Fund's goals are to preserve capital and earn current income. It invests primarily in book value wrap contracts that incorporate a broad selection of short- and medium-term fixed-income instruments, including U.S. government and agency bonds, corporate bonds, mortgages and asset-backed securities. The Fund also may hold insurance company issued Guaranteed Investment Contracts (GICs) or similar instruments as well as cash equivalents.
The Fund was launched in
and had assets of
December 31, 2013
Notes to Editors: