The fund is designed to produce higher returns than money market funds while seeking safety and price stability.
The Stable Value Fund was created in 1993 and has over $3.9 billion in assets as of 09/30/2006.
The fund is open to all qualified retirement plans, either directly or through one of our many trading partners in our financial network.
Stable value funds are an excellent option for those seeking to diversify their retirement portfolio. Stable value funds are not subject to the net asset value or price fluctuations that bond funds experience and are designed to preserve principal and deliver bond-like returns without the volatility.
- Why invest in stable value funds?
- What are the risk vs. return tradeoffs?
- Is stable value investing right for me?
- How can I invest in stable value funds?
Why invest in stable value funds?
- Competitive Returns
Stable value funds have outperformed money market and short-term bond funds over time and have produced consistent, positive returns. - Low Risk
Stable value funds invest in very high credit quality investments with less market risk than equities. The funds are also well diversified to further reduce risk. - Flexibility
Retirement savings may be transferred from stable value funds into any investment option with different investment characteristics than the fund (such as equity funds or balanced funds), according to your benefit plan's provisions.
What are the risk vs. return tradeoffs?
The graph
below illustrates the power of stable value assets as an asset allocation tool.
By using stable value investments instead of bonds, a portfolio can achieve
significantly higher returns at any given level of risk.
Alternatively, for any given level of returns, a portfolio using stable value
assets can perform at a significantly lower level of risk.
Notice that for any given level of risk, the returns can be
greater using stable value assets instead of bonds.
Risk vs. Return Tradeoffs
Efficient Portfolios - 10 Years Ending 9/30/06
Is stable value investing right for
me?
Stable value funds are an excellent investment option for retirement
plan investors who are:
- Looking to safeguard stock market gains.
- Seeking a safe, stable, and flexible component of a long-term retirement portfolio.
- Nearing retirement and seeking capital preservation.
- Risk averse.
How can I invest in stable value funds?
Stable
value funds most often take the form of collective trust funds or separately
managed accounts and are available only to investors through defined
contribution, 401(k), 457, or other types of qualified retirement plans.
If you are a participant in one of these plans, contact your employer or plan sponsor to see if a stable value fund is available as part of your investment options.
| •Stable Value Fund |
| •Taft-Hartley Stable Value Fund |
| •Sub-advised funds |