Stable Value FAQ

Stable value investment options do not exist in publicly available investment vehicles, such as mutual funds.

Because of regulatory rules, stable value as an asset class is not available in either IRAs or taxable accounts.

An equity wash is a contractual provision in a stable value investment option that requires any transfer a participant makes from the stable value investment option to a competing option to first be directed to any other investment option for a period.

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.

In stable value, GICs, wrap contracts, and group annuity contracts are used to help deliver stable value.

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.

Stable value is often categorized into one of three types –individually managed accounts, pooled funds, and insurance company general and separate accounts.

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.

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.

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.