1. An investment option typically offered in retirement plans by employers or IRAs that are composed of guaranteed investment contracts, fixed-income funds, or capital-preservation funds. This is a popular investment vehicle for individuals nearing retirement because of stable interest and principle payments on these contracts. The returns from a stable value fund are secure, but can be small compared to other investments. A stable value fund should not be the only investment vehicle in the portfolio of an individual who has a long time until retirement.
2. A type of mutual fund that is regulated by the Department of Labor instead of the Securities and Exchange Commission, which typically oversees mutual funds. Stable value funds are similar to bond funds, but they have insurance against principal losses. Money invested in stable value fund is combined with other cash infusion and used to purchase secure contracts from banks or insurance companies. These contracts include a guaranteed regular rate of return over the course of the contract.
Related information about stable value fund:
- Stable Value Fund Definition | Investopedia
An investment vehicle found in both company retirement plans and, quite recently , IRA accounts. Stable value funds are comprised of mostly 'synthetic GICs' ...
- Stable Value
Questions About Stable Value. This section includes many commonly asked questions and their answers on Stable Value. read more.
- Stable-value funds are shaky 401(k) options - MarketWatch
Jan 29, 2012 ... I blurted the answer before she could say it: “They all went into one fund … and it was the stable-value fund.” I was right, not because I'm ...
- Steady Eddies - Barrons.com
Apr 7, 2012 ... For example, Pimco, the world's largest bond firm, recently launched its second stable-value fund. And Prudential Insurance last year boosted ...
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5 days ago ... Investors worried about rising interest rates should consider stable value funds, a little-understood insured option found in 401(k) plans.
- What Is a 'Stable-Value' Investment? - SmartMoney.com
May 31, 2005 ... So what's in a stable-value fund, anyway? ... Wrapped bonds currently comprise about 60% of the assets of the average stable-value fund.
- The Best 401(k) Investment? - WSJ.com
Dec 3, 2011 ... When Lehman Brothers failed during the financial crisis, its employees lost 1.7% in December 2008 on their stable-value fund. But the same ...
- Stable Value Fund | MetLife for Brokers & Consultants
MetLife's Stable Value Fund offers attractive returns and daily liquidity, all with low volatility.