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Investing June 4, 2012
Stable Value Funds Still Strong Investment
June 4, 2012 (PLANSPONSOR.com) – Stable value funds continued to significantly outperform money market funds, according to a survey from the Stable Value Investment Association (SVIA).
Reported by Jay Polansky
During the first quarter, stable value fund assets saw returns of 2.73%. iMoney Net Money Market Funds only had a 0.03% return during that time.
Assets in stable value funds have risen by 27% since the start of the survey in the last quarter of 2008, when assets totaled $347 billion. Crediting rates have declined over the survey period, which reflects the low interest rate environment, but stable value crediting rates continue to offer a considerable premium over money market funds for defined contribution retirement plan participants.
The survey, which SVIA has taken every quarter since the fourth quarter of 2008, includes data provided by 24 stable value managers who collectively manage $441 billion in assets.