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On my 401(k) the Target Allocation funds are heavily invested in a bunch of BNY Mellon funds and I can't find what they are.

These three particularly, as they're the largest holdings:

  • BNY Mellon EB DL Brd Mkt

  • BNY Mellon EB DL ACWI ex-US

  • BNY Mellon EB DL US REIT

I know the last one is some sort of REIT obviously. But beyond that I have no idea what these are. What does the EB DL BRD and ACWI mean? I tried figuring it out on the BNY Mellon prospectus but couldn't find it (Ctrl+F --- I didn't read the entire prospectus). On Google the closest I came was something BNY Mellon EB DL non-SL ... but I don't know if those are the same or different. I don't know what non-SL means either.

  • When you signed up for the 401k program, you should have been given complete information about what these funds are; it is a legal requirement. Have you lost this paperwork? If so, you can request another copy from the 401k plan administrator. – Dilip Sarwate Apr 25 '14 at 22:01
  • @DilipSarwate these aren't the funds I can put in my 401(k). Inside the 401(k) one of them is a Target Allocation 2050 plan and inside that prospectus it has considerable amounts going into these 3. – Ender Apr 25 '14 at 22:25
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    @Ryan I spoke with BNY Mellon about the EB, SL, and non-SL designations, so I've added more details to clarify what those terms mean. – John Bensin May 6 '14 at 13:45
  • @JohnBensin wow, I called them yesterday as well and spoke to multiple people without getting anywhere. Curious, which department did you speak with? – Ender May 6 '14 at 13:49
  • @Ryan I actually just used the contact us form on their website. I contacted them the day I first answered your question, so obviously it took them a while to get back to me, but they got there in the end. – John Bensin May 6 '14 at 14:11
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ACWI refers to a fund that tracks the MSCI All Country World Index, which is

A market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world. The MSCI ACWI is maintained by Morgan Stanley Capital International, and is comprised of stocks from both developed and emerging markets.

The ex-US in the name implies exactly what it sounds; this fund probably invests in stock markets (or stock market indexes) of the countries in the index, except the US.

Brd Mkt refers to a Broad Market index, which, in the US, means that the fund attempts to track the performance of a wide swath of the US stock market (wider than just the S&P 500, for example). The Dow Jones U.S. Total Stock Market Index, the Wilshire 5000 index, the Russell 2000 index, the MSCI US Broad Market Index, and the CRSP US Total Market Index are all examples of such an index. This could also refer to a fund similar to the one above in that it tracks a broad swath of the several stock markets across the world.


I spoke with BNY Mellon about the rest, and they told me this:

EB - Employee Benefit (a bank collective fund for ERISA qualified assets) DL - Daily Liquid (provides for daily trading of fund shares) SL - Securities Lending (fund engages in the BNY Mellon securities lending program) Non-SL - Non-Securities Lending (fund does not engage in the BNY Mellon securities lending program)

I'll add more detail. EB (Employee Benefit) refers to plans that fall under the Employee Retirement Income Security Act, which are a set a laws that govern employee pensions and retirement plans. This is simply BNY Mellon's designation for funds that are offered through 401(k)'s and other retirement vehicles.

As I said before, DL refers to Daily Liquidity, which means that you can buy into and sell out of the fund on a daily basis. There may be fees for this in your plan, however.

SL (Securities Lending) often refers to institutional funds that loan out their long positions to investment banks or brokers so that the clients of those banks/brokerages can sell the shares short. This SeekingAlpha article has a good explanation of how this procedure works in practice for ETF's, and the procedure is identical for mutual funds:

An exchange-traded fund lends out shares of its holdings to another party and charges a rental fee. Running a securities-lending program is another way for an ETF provider to wring more return out of a fund's holdings. Revenue from these programs is used to offset a fund's expenses, which allows the provider to charge a lower expense ratio and/or tighten the performance gap between an ETF and its benchmark.

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