Home > Library > Stable Times > Volume 3, Issue 3  

Stable Value Remains True To It's Name

The Hueler Stable Value Index has outperformed Lipper's Money Market average by greater than 100 basis points annually over the past one, three and five year periods. In addition, the Hueler Index has outperformed the Lehman Int. Gov/Corp Index by over 200 basis points over the past 12 months.

Volatility for the three indices differs significantly. Over the past five years, the standard deviation for the Money Market and Stable Value Indices are almost exactly the same, hovering at 11 and 9 basis points respectively. While for the same time period, the Lehman Intermediate Gov/Corp shows significant volatility at 253 basis points, which equates to almost 30 times more volatility.

As demonstrated, stronger return performance and less volatility provides additional support as to why stable value funds should be a core investment option in defined contribution plans.

Index comparison graph:

Read Next: Retirement Security Not at Risk With Missouri Department of Insurance's Supervision of General American