The acquired data is derived from the nation's leading stable
value funds from over 35 fund managers and represents more than USD 450bn in assets.
Its Stable Value Navigator provides advisors with data and insight on stable
value funds along with the ability to compare products.
Because stable
value funds invest in intermediate-term bonds, and money market funds favor short-term bonds, the recent rise in short-term interest rates has been creating some challenges for stable value.
PORTLAND, Ore: Standard Insurance Company expanded its lineup of stable
value funds, offering plan sponsors and advisors greater flexibility and a range of yields and liquidity options.
Relative
value funds experienced the most significant allocations, according to the report, with net inflows of $2.1 billion, as investors continued to minimize duration exposure in light of anticipated Federal Reserve rate hikes.
On average, growth funds beat
value funds by just under 5 percent.
A 401(k) plan participant has filed suit against Massachusetts Mutual Life Insurance Co., alleging the firm collects tens of millions of dollars annually in undisclosed compensation due to the way it values the crediting rate for stable
value funds offered to 401(a) and 403(b) retirement plans.
(2006), I define high family
value funds as funds that are high past performers (or that charge high fees).
For example, they have been sued under ERISA for offering stable
value funds or similar products that earned an allegedly excessive interest rate spread.
Actively managed funds (excluding stable
value funds) garner an additional 23 percent.
"Although it launched in December 2006, not long before the market meltdown, the fund demonstrated a defensive posture early on by losing just half of what other mid-cap
value funds lost to the market swoon of 2008."
For stable
value funds, and also for those investment options that lent securities, the withdrawal restrictions and their causes highlight the risks that participants face when allocating their 401(k) plan assets to these investment options--and, that losses are borne by plan participants.
