Target-date funds: prevalent but not always loved
If participants don’t want to take on additional risk, they might opt to put all their savings in a defined contribution plan into something more stable, such as a stable value or money market fund, rather than a target-date fund.
Remembering Jim McDevitt
We’re saddened to announce the passing of Jim McDevitt, a pioneering figure in the stable value industry and a long-time colleague to many. Jim retired a while back and earlier this year, he passed away.
Stable Value and Rising Interest Rates – 2023
Many have theorized about how stable value would perform in a rapidly rising interest rate environment. The rapid rise in short-term interest rates since March of 2022 is the largest increase in rates since the 1980s and provides data to test these theories.
Understanding Key Drivers of Participant Cash Flows
In a collaborative effort between Valerian Capital Group and the Actuarial Science Department of the University of Lyon, this research offers crucial insights into the driving factors behind participant cash flows for individually managed stable value funds.
Exit Provisions
Stable value products are designed to provide principal protection as well as returns over the long term consistent with short to intermediate term bonds for plan participants. Stable value products invest in fixed income investments and purchase insurance to wrap the investments. That insurance allows for contract value accounting and a stable net asset value […]
Economist Discounts Hopes for an Economic “Soft Landing” as Fed Raises Rates
When the Federal Reserve began raising interest rates in 2022, many investors hoped the Fed’s war on inflation could be won without provoking a recession. Steve Friedman, senior macroeconomist with MacKay Shields, an affiliate of New York Life Investments Co., doubts that will happen. While the economy appears relatively strong at the moment, he credited that, in part, to a confluence of factors that have temporarily created a uniquely supportive economic environment.
Why a Stable Value Fund Belongs in Your Retirement Portfolio
For U.S. retirees and older workers on the cusp of retirement, stabilizing their investment portfolios in their 60s, 70s, and beyond is no luxury – it’s a necessity. That’s where stable value funds can help, mainly by adding an insurance element to guarantee portfolio returns. Over 80% of U.S.-defined contribution plan sponsors offer stable value funds […]
New SVIA Resource: Q&A on Current Market-to-Contract Ratios for Stable Value Funds
This new SVIA resource provides a helpful overview on market-to-contract ratios, including what they are, how they impact funds, and how they have changed with market environments over the years.
New SVIA Resource: Stable Value at a Glance 2.0
A refresh of SVIA’s most popular resource, Stable Value at a Glance, is now available. This version contains all the information from the prior version along with the most popular graphs and statistics from other SVIA education pieces all in one place.
