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STRATEGIES BY ASSET CLASS
Fidelity Stable Value
A fundamental component of a defined contribution plan that seeks principal protection and offers the potential for steady, predictable returns consistent with a conservative principal protection vehicle.
An industry leader dedicated to helping investors meet their goals
Fidelity has been managing stable value portfolios since 1986. Our stable, independent organizational structure provides the freedom to focus on the long-term success of our customers.
Independent, broad-based fundamental research
Utilizes Fidelity’s fundamental company research to generate alpha through security selection and sector allocation.
Team-based approach
Leverages insights derived from multiple sources, including portfolio manager teams, macro and fundamental research, dedicated bond traders, and embedded quantitative research.
Robust risk management
Manages exposures to aggregate portfolio risk factors, as well as idiosyncratic exposures via a proprietary risk management platform and a dedicated risk oversight function.
The Fidelity Stable Value pools are separate funds of the Fidelity Group Trust for Employee Benefit Plans and managed by Fidelity Management Trust Company. Only qualified, participant-directed, defined contribution plans may invest in these pools. These investment options are not mutual funds and are only available to eligible investors.
A focus on disciplined risk management and opportunistic investing
Championed standardized industry-wide stable value investment guidelines already embedded in our process.
Emphasis on capital preservation and a constant focus on participant fairness by minimizing market/book ratio volatility.
Employ a consistent and transparent investment process.
Maintain fully invested portfolios wrapped by global and fully synthetic contracts with transparent disclosure of holdings and fees.
We believe our investment philosophy aligns with how stable value is utilized because participants tend to own stable value as a capital preservation vehicle alongside other equity and fixed income investment options.
Portfolio managers
We utilize a fully transparent, team-based approach to manage our stable value portfolios. The foundation of this approach is the strong collaboration between portfolio managers, analysts, traders, and quantitative analysts.
Q3 2024 Fixed Income Perspectives Video
7:02
Hear how the bond market reacted in Q3 following the Fed’s first rate cut since 2020 from Portfolio Manager Julian Potenza.
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Q3 2024 Fixed Income Perspectives Video
INSTITUTIONAL SOLUTIONS
Liability-driven investing
Explore how Fidelity’s approach to integrating liability risks and total plan de-risking goals—combined with best-in-class portfolio management—can help create and execute effective custom solutions.
Contact a Fidelity representative
INSIGHTS
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.
Solutions for institutional investors
Investment-grade fixed income
Experience and insight to create fixed income strategies that meet evolving and complex client needs.
Explore investment-grade fixed income
High-yield fixed income
Strategies investing in higher-yielding debt to meet income and capital appreciation goals.
Explore high-yield fixed income
Money market
Institutional money market strategies to meet clients' liquidity needs.
Explore money market
Past performance is no guarantee of future results. An investment may be risky, may fluctuate in value, and may not be suitable for all investors.
This strategy's performance will change daily based on changes in interest rates and market conditions and in response to other economic, political, or financial developments. Debt securities are sensitive to changes in interest rates depending on their maturity, and may involve the risk that their prices may decline if interest rates rise or, conversely, if interest rates decline, their prices may increase. Debt securities carry the risk of default, prepayment risk, and inflation risk. Changes specific to an issuer, which may involve its financial condition or economic environment, can affect the credit quality or value of an issuer's securities. Lower-quality debt securities (those of less than investment-grade quality, also referred to as high-yield debt securities) and certain types of other securities are more volatile and are often considered to be speculative and involve greater risk due to increased sensitivity to adverse issuer, political, regulatory, and market developments, especially in periods of general economic difficulty. The value of mortgage securities may change due to shifts in the market's perception of issuers and changes in interest rates or regulatory or tax changes.
Derivatives may be volatile and involve significant risk, such as credit risk, currency risk, leverage risk, counterparty risk, and liquidity risk. Using derivatives can disproportionately increase losses and reduce opportunities for gains in certain circumstances. Investments in derivatives may have limited liquidity and may be harder to value, especially in declining markets. Derivatives involve leverage because they can provide investment exposure in an amount exceeding the initial investment. Leverage can magnify investment risks and cause losses to be realized more quickly. A small change in the underlying asset, instrument, or index can lead to a significant loss. Assets segregated to cover these transactions may decline in value and are not available to meet redemptions. Government legislation or regulation could affect the use of these transactions and could limit the ability to pursue such investment strategies.
Products and services presented here are managed by Fidelity Management Trust Company, a Massachusetts trust company.
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