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Stable Value Offers Shelter from Bond Bubble

Forbes’ Janet Novak highlights many of the benefits of a stable value fund, especially in a rising interest rate environment. Some of her points include:
• With $650 million in assets, the stable value asset class is widely misunderstood, creating a great opportunity for retirement plan advisors to differentiate themselves.
• Costs for the guarantees of stable value funds have doubled in the last year, causing significant disruption.
• With proper protections in place, most stable value funds — even in an extreme rising interest rate environment — should maintain their principal and most of their yield. There is a great opportunity for savvy advisors to dig under the hood of what’s available in the market.

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