Stable Value at a Glance

What is stable value?

Stable value is an investment vehicle offered by defined contribution plans and used by participants.

Stable value provides the following unique combination of benefits:

  • Principal preservation
  • Stability and steady growth in principal and earned interest
  • Returns similar to intermediate bond funds with the liquidity and certainty of money market funds
  • Benefit-responsive liquidity, which means participants transact at contract value (principal plus accrued interest)

Stable Value is used in defined contribution plans

Stable value funds are a core investment in defined contribution employee benefit plans:

  • $902 billion invested in stable value assets1
  • More than 185,000 defined contribution employee benefit plans1
  • Offered in approximately three-quarters of all defined contribution plans2
  • 401(k) allocations to stable value funds have ranged between 17% to 37% over the life of the Aon 401(k) Index™

Stable value provides capital preservation and consistent, steady returns:

Stable value offers higher return potential than money market funds:

1 SVIA Annual Investment and Policy Survey Covering Stable Value Assets as of 12/31/2020
2 Alight Solutions’ 2017 Trends & Experience in Defined Contribution Plans