Representatives of stable value managers and wrap providers shared similar stories during the panel presentation—stories about how they’re working to ensure that stable value continues to deliver what it promises for the millions of retirement plan participants who invest in the asset class. And stories about how they’re succeeding.
By Randy Myers Policy strategist Charlie Schreiber predicts a tight
In 2007, the U.S. Department of Labor issued regulations dictating which types of investments would qualify as appropriate default investment options in defined contribution retirement savings plans. The DOL left stable value funds—then one of the most popular investments in retirement plans—off the list, concerned that plan participants would need exposure to stocks to meet their long-term retirement savings goals. Instead, the DOL designated target-date funds, which typically hold a mix of stocks, bonds, and sometimes cash, as Qualified Default Investment Alternatives (QDIAs).
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