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Got Milk Stable Value?

When hearing the phrase “The ultimate driving machine” most people think — BMW — whether they actually agree with the claim or not.  And for many of us the phrase “Mmmm Mmmm Good” conjures up images of folks slurping a spoonful of Campbell’s soup.

However, product recognition is not so visible when it comes to stable value funds.  Just look, for example, at a small sampling of the universe of names that may refer to a stable value investment option offered in a 401k plan:

These are just a handful of over 140 unique names for stable value funds tracked in Hueler Companies’ FIRSTSource stable value database.

The current market environment should foster investor appetite for stable value funds. The equity market’s downside volatility, the aging of the baby boomers, and the particularly low yields offered by money market funds provide a backdrop which makes the ability to earn intermediate bond-like returns, with money market-like stability look very attractive. 

But without wide recognition of what stable value IS, or WHAT IT IS CALLED if it is being offered, getting investors to realize its benefits is truly a challenge.

This publication is one of the many ways that the SVIA raises awareness of stable value and its benefits.  In this edition we address what stable value is (and isn’t), how and why it should be measured, and how it should be accurately represented.  The various task forces appointed by the SVIA to foster awareness of this under recognized investment option are doing a lot of great work. Until we come up with our own ‘catchy little phrase’, we’ll continue to rely on our industry’s intellectual persuasion and our relentless search for respect to get out our message. In the meantime, we can copy other past successes:

Stable Value:  It’s GRRRREAT!

It’s the real thing

Try it...you’ll like it

This Bud’sBud’sBud’s fund’s for you!

Got stable value?

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