Stable value funds are tailored to meet the needs of a specific plan. While all stable value funds have weathered various economic cycles and consistently performed in meeting the needs of plan participants, there are differences in structure, levels of guarantees, as well as some contractual features.
What are stable value funds? How do they work? What are the benefits? What are the risks? These are some of the basic questions most have. Below we will answer these questions and others to help you increase your knowledge and understanding of stable value funds.
Stable value provides the following unique combination of benefits: The stable value industry is $922 billion allocated across four types of stable value: $922 Billion1 Invested in Stable Value as of 3/31/2023 Stable value is only available in tax qualified plans, most notably defined contribution plans,and is offered in approximately 3 out of 4 defined […]
For more than 40 years, stable value funds have played an important role helping retirement plan participants safely accumulate and retain retirement savings. Stable value funds are considered a core investment option, with more than 185,000 defined contribution plans making stable value available to millions of participants. Participant assets allocated to stable value total more […]
If you’re new to stable value, the Wikipedia article is a great place to start. It provides a brief history of stable value back to the inception of defined contribution plans in the 1970s, as well as their performance over time and during the 2008 financial crisis.
The goal of this paper is to suggest a framework for understanding and evaluating insurance company stable value contracts in qualified plans.
Stable value investment options have been offered in defined contribution plans since these plans’ inception in the 1970s. Throughout their 40 year history, stable value funds have consistently delivered a unique combination of benefits: liquidity, principal preservation and consistent, positive returns.
Stable value is a principal preservation investment option used by millions of plan participants to achieve their desired risk tolerance in asset allocation. This document provides an overview of the three different management types, their performance, and the contract types used to deliver stable value’s guarantee.
Stable value refers to a relatively low-risk asset class that focuses on capital preservation and liquidity, while providing steady, positive returns to participants within certain types of defined contribution plans.