Including a Stable Value Fund in Your Retirement Portfolio

With their insurance guarantee, stable value funds can help protect retirees against market changes that would otherwise impact their portfolio assets. Over time, these funds have grown in popularity among investors.

Henry Riter offers some insights into the pros and cons of stable value funds. He explains how the insurance guarantees mean "participants are insulated from investment losses in the event of rising interest rates or credit events, which can cause a drop in the value of the underlying bond portfolio." However, Henry also brings attention to the higher fees associated with the stable value fund structure. He argues that Plan Sponsors should not let these fees deter them. 

"Over time, the stable value fund structure has served participants well compared to other conservative investment options."

Interested in learning more? Check out the full article at U.S. News.