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. […]
Legal Update – Plaintiffs’ Bar Updates New Theory
Financial services firms that cater to the retirement plan market might be excused for thinking there’s a target on their back. As attorneys from the law firm of Morgan, Lewis & Bockius explained at the 2016 SVIA Spring Seminar, the ERISA plaintiffs’ bar continues to test new theories about ways that service providers, and plan […]
Leadership: The Other Stable Value
In early April, the U.S. Department of Labor finally issued its long-anticipated new rule extending fiduciary responsibility to anybody who is compensated for providing investment advice, whether to individuals or retirement plans. In a nutshell, it requires fiduciaries to act in the client’s best interest. Sounds simple. But the so-called streamlined rule is 1,028 pages […]
New York Life Fixed Income Manager Sees Continued US Economic Growth, Fixed-Income Opportunities
It’s easy to be worried about investment risk right now. China, the world’s second largest economy, is experiencing growing pains that have sent oil and other commodity prices tumbling. China’s attempts to transition from an economy built on government infrastructure spending to one built on consumer spending is going to be tricky. Meanwhile, Japan and […]
