Stable Value Is Better Than Bonds
Consensus forecasts continue to favor higher rates and low bond returns over the medium term. GMO, the Boston-based global investment firm, recently updated its 7-year real return forecast and projected a dire situation for most asset classes, including a projected -2.1% real return for U.S. bonds. Most investors understand the risk/return tradeoff expressed by stocks, […]
How plan sponsors should respond to 401(k) money market fund rules
Plan sponsors should consider stable value and guaranteed rate funds which guard against loss of principal but may have redemption fees and liquidation window restrictions. These funds have yields that are much higher than government and prime money market funds. Recent fiduciary breach lawsuits filed against plan sponsors for using money market funds instead of […]
ICMA-RC Seeks Senior Stable Value Fund Manager
The Senior Fund Manager will take a lead role in the co-management of proprietary stable value funds/portfolios and oversight of certain fixed income funds/portfolios and external asset managers. Such responsibilities will include working with the Managing Vice President, Fixed Income and other senior investment personnel, in developing and implementing stable value fund/portfolio strategies and the […]
Stable Value Funds: Risk Less And Earn More
During periods of market turbulence and low interest rates, many investors struggle to find investment alternatives that aren’t getting hammered. But those saving for retirement may be pleasantly surprised to discover a unique breed of mutual fund known as stable value funds. These funds are somewhat similar to money market accounts, except that they post […]
The 6 Most Popular 401(k) Investments
401(k) plan participants are given a limited menu of investment options and must choose how to allocate their retirement savings. Younger 401(k) investors tend to select equity funds, while older participants often have a growing interest in protecting part of their savings using bond funds, stable value funds and money funds. Many new 401(k) participants […]
Evaluating Capital Preservation Options
In light of US money market reforms, many defined contribution (DC) plan sponsors are weighing the pros and cons of their capital preservation choices in terms of yield, daily liquidity needs, net asset value stability and liquidity restrictions. DC plans have typically selected between money market and stable value funds as their capital preservation option. […]
Stable Times Volume 20 Issue 1
Download PDF The biannual publication of the Stable Value Investment Association that covers both industry concerns and association activities. Table of contents: Retirement through the Generations Stable Value Trends and Opportunities Legal Update – Plaintiffs’ Bar Updates New Theory Leadership: The Other Stable Value New York Life Fixed Income Manager Sees Continued US Economic Growth, […]
Retirement through the Generations
Americans’ expectations about when they will retire, and how they will pay for it, vary significantly depending upon their age, according to new research from the Transamerica Center for Retirement Studies. The center polled more than 4,500 working Americans in early 2015 for its 16th Annual Transamerica Retirement Survey of Workers. To compare their views […]
Stable Value Trends and Opportunities
They’ve been a staple of defined contribution retirement plans for more than four decades, but stable value funds still have room to grow. Speaking at the 2016 SVIA Spring Seminar, executives from investment advisor Callan Associates noted that stable value funds continue to be used by more than 60 percent of the 100plus large defined […]
