Bank of New York Mellon reopened its Mellon Stable Value Fund to all investors, removing restrictions that had been placed on the $1.05 billion fund in January 2012, confirmed spokesman Mike Dunn.
The fund had stopped accepting new investors due to what the company said was an “industrywide shortage” of wrap contracts, according to a news release issued Monday. Wrap contracts are insurance products that guarantee the book value of the underlying bond investments.
In February 2012, the fund began accepting new investors with $1 million or less, Mr. Dunn said in an interview. In December 2013, the fund accepted investors with $10 million or less, “although some larger investments were accepted on a case-by-case basis,” the news release said. Now, the fund is available to all investors.
The Mellon Stable Value Fund is a collective investment fund offered to plan sponsors for qualified employee benefit plans and trusts. The fund is managed by the stable value division of Standish Mellon Asset Management Co., a fixed-income subsidiary of BNY 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 Eric Baumhoff, chief investment officer of Standish Mellon's stable value division, in the news release.