Introduction 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. As anticipated, money market funds have provided more favorable rates in […]
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.
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 […]
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.
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 […]
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.
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.
An increasingly unpredictable market has heightened attention on stable value funds. With $902 billion in assets, stable value funds represent 8% of defined contribution plan assets based on the Investment Company Institute’s Retirement Plan Assets as of first quarter 2022. This FAQ is intended to answer frequent questions on stable value given the increased attention and prominence of this investment option in defined contribution plans.