What is stable value?
Stable value is an investment vehicle offered by defined contribution plans and used by participants.
Stable value provides the following unique combination of benefits:
- Principal preservation
- Stability and steady growth in principal and earned interest
- Returns similar to intermediate bond funds with the liquidity and certainty of money market funds
- Benefit-responsive liquidity, which means participants transact at contract value (principal plus accrued interest)
Stable Value is used in defined contribution plans
Stable value funds are a core investment in defined contribution employee benefit plans:
- $733 billion invested in stable value assets
- 167,000 defined contribution employee benefit plans
- Offered in approximately three-quarters of all defined contribution plans1
- 401(k) allocations to stable value funds have ranged between 17% to 37% over the life of the Aon 401(k) Index™
Stable value provides capital preservation and consistent, steady returns:
Stable value offers higher return potential than money market funds:
1 Source: Alight Solutions’ 2017 Trends & Experience in Defined Contribution Plans