For our latest study, MetLife commissioned a survey of 238 defined contribution (DC) plan sponsors and 50 advisors to assess their attitudes about stable value as a capital preservation option, including:
- How plan sponsors access stable value options
- Stable value’s historical performance vis-à-vis other capital preservation options
- Steps taken to manage target date fund volatility
- Stable value as a mechanism for smoothing out volatility in TDFs, including custom TDFs
Stable value is a capital preservation option that offers earnings stability and liquidity, while delivering a guarantee of principal and interest.
Want more insights from the 2024 Stable Value Study report?
Why Stable Value is Valued
of plan sponsors view stable value as a good capital preservation option because of its long-term, historical performance
of plan sponsors are not planning to make any changes to their stable value offerings
of plan sponsors say stable value funds are valuable to plan participants seeking a safe haven
With few companies expecting to make any changes to their stable value offerings, it is clear from our research that plan sponsors – and their advisors – are staying the course with this capital preservation option.
Did You Know?
Recent market volatility has highlighted a potential gap in the market that could be filled by a target date fund solution that allows for volatility smoothing for a portion of the fund assets, particularly for investors who are near or in retirement. One such strategy uses the long-standing principles of stable value to reduce the fund’s volatility by wrapping the fixed income and a portion of the equities within the glidepath.
Conclusion
Whether including stable value as a capital preservation option in a DC plan – or leveraging the principles of stable value in new and creative ways – the outlook for the future of stable value remains strong.