Stable-value funds, one of the hottest categories in this bear market, have caught the attention of the Securities and Exchange Commission, which is looking into how they arrive at their NAVs, The Wall Street Journal reports.

Invested in high-quality bonds and interest-bearing contracts, stable-value funds also have an insurance wrapper to guarantee that the principal and interest remain steady – a great appeal to investors these days, who have put $315 billion into them.

Aware of their growing popularity even last fall, Fidelity Investments reportedly asked the SEC for a no-action letter on its NAV plans for its first stable-value fund. Fidelity’s request led the SEC to ask valuation questions, which prompted Fidelity to delay the launch, a Fidelity spokeswoman told The Wall Street Journal.

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