Some info on stable value funds …

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Here’re some facts and links that may help anyone who is researching on stable value funds.

Personally, I put all the cash in my 401(k) into a GIC, which works just like a money market fund as sweep account to trade other mutual funds in the 401(k) account. Currently it yields a little over 4% annually.

Stable Value Funds

OBJECTIVE
Preserve principal and earn a stable rate of return. Their current average yield is around 4%.

PORTFOLIO
Funds own high-quality asset-backed securities, corporate bonds, U.S. Treasuries.

RETURN
Funds have returned 7.19% annually over the past 10 years, vs. 5.28% for money market funds and 8.45% for taxable bond funds.

The links in no particular order:

  • MutualofOmaha.com
  • www.fcmstablevalue.com
  • SEC Splotligh on Stable Value funds
  • www.stablevalue.org
  • http://101investor.com/z/mutual-funds/stable-value-mutual-fund-sec.html
  • http://www.nylim.com/gp/0,2058,1000_1018245,00.html