Is stable value regulated?
Yes, stable value investment options, investment contracts, investment managers, and other service providers such as insurance companies involved in stable value have multiple layers of regulatory oversight.
What types of contracts are used in stable value funds?
In stable value, GICs, wrap contracts, and group annuity contracts are used to help deliver stable value.
How does stable value compare to other investment options?
Over a business cycle, most stable value investment options have historically provided gross returns similar to short- to intermediate-maturity bond strategies but without the daily mark-to-market volatility.
Are there different types of stable value funds?
Stable value is often categorized into one of three types –individually managed accounts, pooled funds, and insurance company general and separate accounts.
What are the risks of investing in stable value?
Although stable value has a long, well established track record of preserving capital, providing liquidity, and generating steady, positive returns, it is important to recognize that all investments have risks.
What is stable value?
Stable value generally 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 savings plans.
What role can stable value play in my savings and investment strategy?
Stable value is usually offered by a plan sponsor in a defined contribution plan as a low-risk investment that focuses on capital preservation and liquidity, while providing steady, positive returns to a plan’s participants.
What are some other aspects of guaranteed insurance accounts that a plan sponsor should consider?
Consider asset ownership, single guarantors, disclosure requirements, fees/spread, and exit terms.
What are the strengths of guaranteed insurance accounts?
In addition to providing an attractive solution to plans and participants seeking stability, liquidity, and yield, guaranteed insurance accounts provide the following benefits:
