The Wells Fargo Stable Return Fund has reopened to new investors, confirmed David Ferry, senior director at Galliard Capital Management, adviser to the fund.
The $30 billion Wells Fargo stable value fund closed to new investors in early 2013 because of concerns over low interest-rates.
But after a “rate surprise” in the second quarter of 2013, in which 10-year Treasury yields rose “significantly,” Mr. Ferry said Galliard executives decided to review their decision.
Mr. Ferry said the Wells Fargo fund retained its 12-month put option, requiring participating DC plans that want to leave the fund to give 12 months notice so they can receive book value for their investments. The 12-month put option is common among stable value funds.