Firms Introduce Stable Value Collective Trust

New York Life Investments and Reliance Trust Company have introduced a stable value fund.

The Reliance Trust New York Life Anchor Account Series I is available through the Reliance Trust Company Stable Value Employee Benefit Investment Trust, a collective trust established by Reliance Trust Company. Investment in the collective trust provides plans with a choice of three stable value share classes. The collective trust is intended to target the small-plan defined contribution retirement market.   

The collective trust is valued daily and aims to preserve principal and offer competitive yields. The stable value fund held by the collective trust is managed by New York Life Fixed Income Investors. The new collective trust invests in a diversified portfolio of fixed-income investments within the stable value fund, through a New York Life group annuity contract. Reliance Trust will serve as trustee and manager for the collective trust.  

Given the long-term, low-interest rate environment, investors are seeking principal protection with yield, as opposed to current near-zero percent rates from money market vehicles, according to Steven Dorval, managing director of defined contribution investments at New York Life Investments Group. “Now, defined contribution plans of all sizes can tap into a stable value offering quite similar to what larger retirement plans can access,” Dorval said.