Research

Stable value for capital preservation and diversification

Stable value strategies offer principal preservation and competitive income that have the potential to outpace inflation, with limited volatility.

By: David DeBiase Robert Galusza Julian R. Potenza Sean Walker

Updated: 2/27/2023

Key Takeaways

Stable value strategies are conservative retirement investments that have performed well relative to other principal preservation strategies in varying market and interest rate environments.^*
Historically, stable value strategies have provided attractive diversification benefits in 401(k) plans, and have generally generated yields that have outpaced inflation.
In volatile interest rate environments, stable value strategies can be appealing because of their short duration and potential for steady returns.
Plan sponsors should be aware of the unique construction of stable value strategies and portfolio management considerations.

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Stable value for capital preservation and diversification

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* See Exhibits 1 and 2 in full paper. Past performance is no guarantee of future results.

Diversification does not ensure a profit or guarantee against a loss.

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Past performance is no guarantee of future results.

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