Prudential White Paper Touts Benefits of Stable Value

Plan sponsors and participants have become more conservative in recent years, leading them to stable value products that preserve capital and deliver steady returns, according to a white paper released by Prudential Retirement.

Stable Value Products: An Increasingly Important Component of the U.S. Retirement Market details how stable value products, which combine an investment in fixed income securities with a guarantee of principal and accumulated earnings, can provide fiduciaries and participants with protections not generally available within other investment choices in retirement plans. That said, roughly half of retirement plans still lack a stable value investment option, according to Prudential.  

The white paper provides an overview, description, and comparison of the wide range of stable value products and outcomes. The paper further explores the role stable value products will serve in the retirement market in the future and examines the benefits of the asset class to its primary alternatives; money market funds and investment grade intermediate term bond funds.  

The research also includes demonstrations of how a participant’s portfolio will perform when a stable value product is an investment option.  

The white paper is available here.