BMO Stable Value Fund

Fund overview

The objective of the BMO Stable Value Fund is principal preservation while generating a level of current income, generally exceeding that of a money market fund. The Fund seeks to maintain a stable $1.00 unit value, although there is no guarantee it will be able to do so.

In meeting its objective the Fund also seeks to control risk by maintaining a conservative investment profile:

  • Seek to maintain higher average quality than peer group as reported by Hueler
  • Limit interest rate risk by maintaining a 2 – 3.5 year duration target
  • Focus on collateralized securities versus unsecured debt in internally managed synthetic Guaranteed Investment Certificates (GICs)

 

Benchmark

BofA Merrill Lynch 1-3 Year U.S. Government/Corporate Index

Portfolio managers

Don McConnell
Senior Portfolio Manager

Latest insights

The BMO Stable Value Fund is a collective investment fund maintained by BMO Harris Bank N.A. and advised by BMO Asset Management Corp. The Fund seeks to maintain a stable $1.00 unit value through investments in guaranteed and synthetic investment contracts as well as money market securities, although there is no guarantee it will be able to do so. Investment involves risk. The opinions expressed here reflect our judgment as of this date and are subject to change. Market conditions and trends will fluctuate. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.

BMO Funds and the BMO Stable Value Fund are not deposits or obligations of, or endorsed or guaranteed by, BMO Harris Bank N.A. or any of its banking affiliates, nor are they federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. Investment in the BMO Funds or the BMO Stable Value Fund involves investment risk including the possible loss of principal.
For more complete information, please contact your plan sponsor. A mutual fund prospectus, collective fund disclosure statement, or other applicable fund information can be obtained from your plan sponsor. You should carefully consider the fund’s investment objectives, risk, charges, and expenses before you invest. Information about these and other important subjects is in the fund’s prospectus, collective fund disclosure, or other applicable fund information, which you should read carefully before investing.

Regarding the BMO Government Money Market Fund: you could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not a deposit of BMO Harris Bank N.A., or any of its affiliates, and is not insured or guaranteed by the FDIC or any other government agency. The Adviser has no legal obligation to provide financial support to the Fund, and you should not expect that the Adviser will provide financial support to the Fund at any time.

A unit of this Fund represents an interest in a collective investment fund available to qualified plan clients. Marshall & Ilsley Trust Company, N.A. merged into BMO Harris Bank N.A. on September 1, 2012. For periods prior to 12/31/11, the BMO Employee Benefit Stable Principal Fund was known as the M&I Employee Benefit Stable Principal Fund. BMO Employee Benefit Stable Principal Fund changed its name to BMO Stable Value Fund effective June 1, 2016. BMO Global Asset Management is the brand name for various affiliated entities of BMO Financial Group that provide investment management and trust and custody services. Certain of the products and services offered under the brand name BMO Global Asset Management are designed specifically for various categories of investors in a number of different countries and regions and may not be available to all investors. Products and services are only offered to such investors in those countries and regions in accordance with applicable laws and regulations. BMO Financial Group is a service mark of Bank of Montreal (BMO).