What is Stable Value?
Stable Value Delivers Safety & Stability
Stable Value Funds deliver safety and stability by preserving principal and accumulated earnings. They are similar to money market funds but offer considerably higher returns. Their returns make them comparable to intermediate bonds minus the volatility. They are the largest conservative investment in defined contribution retirement plans with over $540 billion in assets.
Help with Stable Value
Questions About Stable Value
This section includes many commonly asked questions and their answers on Stable Value.
Stable Value Basics
A quick overview explaining what are Stable Value Funds, how they compare to money market funds and intermediate bonds, and the role they play as part of a balanced investment portfolio.
Stable Value Performance to Date by David F. Babbel, The Wharton School, University of Pennsylvania, Charles Rivers Associates and Miguel A. Herce, Charles Rivers Associates.
Little in the scholarly economics literature is directed specifically to stable value funds, although they occupy a leading place among retirement investment vehicles. They are offered in almost half of all defined contribution plans in the USA, with more than $800 billion dollars worth of assets under management. This paper rigorously examines their performance throughout the entire period since their inception in 1973. We produce a composite index of stable value returns. We conduct mean-variance analysis, Sharpe and Sortino ratio analysis, stochastic dominance analysis, and optimal multi-period portfolio composition analysis. Our evidence suggests that stable value funds dominate two (and nearly three) major asset classes based on a historical analysis, and that they often occupy a significant position in optimal portfolios across a broad range of risk aversion levels. We discuss the factors that contributed to stable value's remarkable performance and whether it can be maintained into the future. Although stable value funds have heretofore been largely restricted to U.S. savings plans, the results of our study have strong implications for their consideration in markets overseas. In our paper, innovations are achieved in constructing efficient stochastic dominance algorithms, incorporating return expectations in multi-period portfolio construction, and in examining the multi-relations among competing stable value funds.
News
Newsletter
Second Half 2011 – Volume 15 Issue 2
Events
Headlines
Stable Value Products: An Increasingly Important Component to the U.S. Retirement Market – Prudential, September, 2011
Stable Value – Pensions & Investments, April 2011
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In addition to being Association members, these organizations partner with SVIA to bring their expertise and leadership to critical issues before the stable value industry.
They also make possible our core services such as www.stablevalue.org, Stable Times, the Spring Seminars and the National Forum and Annual Membership Meeting.
