Stockback Capital, a New York-based company that, with JP Morgan Chase, offers a co-branded credit card with a cash rewards program that allows consumers to automatically reinvest, has finally settled on the fund. Users of the Stockback MasterCard from Chase will now have the option of investing their cash-back reward in the Merrill Lynch S&P 500 Index Fund.
In March, Stockback and JP Morgan Chase launched the credit card, which allowed consumers to earn 1% cash back on all purchases, which they have the option of keeping or investing in a fund. At that time, the two companies had selected the Stockback Fund, a Merrill Lynch-managed mutual fund created specifically for the credit card users. But three days after the announcement of the new card, Stockback filed a preliminary proxy statement with the Securities and Exchange Commission seeking to liquidate the fund (see MFMN 4/1/02).