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Stable Value - Capital Preservation

Help employees preserve the value of their retirement assets by offering a superior alternative to money market funds.

The Key to a Secure Retirement
When planning for retirement, employees are seeking a safe haven for their assets that will preserve their investment, and sometimes, money market funds are the only capital preservation option available. But there’s a proven alternative that can boost confidence, stability and deliver better returns: Stable Value. 

Stable Value vs. money market funds
Unlike money market funds, most Stable Value portfolios are built around intermediate duration bonds. These types of bonds have historically offered higher total returns over time versus the shorter duration instruments in which money market funds are required to invest. In addition, the crediting rate of Stable Value portfolios act as a stabilizer by protecting employee assets from short-term market changes, which lowers volatility and builds purchasing power.

Volatility Smoothing Chart – MetLife Stable Value Fund vs. Money Market Funds 

Assumptions: 

Returns are net of fees. Fees are a flat 50 basis points. YTM for rate reset purpose is the annualized yield to worst of the Lehman Brothers Intermediate Govt/Credit. The duration assumption for rate reset purposes is the Lehman Brothers Intermdiate Govt/Credit Index Modified Adjusted Duration. The money market return is the iMoneyNet All Taxable Mopney Fund Average historical return and is not reflective of expenses, the deduction of which would reduce returns. Effective 12/31/16 Money Market Fund Statistics U.S. SEC - Weighted Average Net Prime is used. 

To learn more about the benefits of Stable Value solutions over money market funds, download the overview below.

Stable Value vs Money Market

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Offer your employees stability in retirement

Help diversify the investment options available to employees and support their retirement goals with Stable Value. When compared to money market funds, Stable Value solutions offer:

  • Consistently higher returns
  • Lower market volatility
  • Increased purchasing power
  • Benefit responsiveness