How Does the Stable Value Fund Differ from a Bond Fund and a Money Market Fund?
In smoothing gains and losses of the underlying investments over a three year period, the Stable Value Fund is able to deliver a stable rate of return. By contrast, bond fund values fluctuate with interest rates meaning changes in interest rates affect both the principal balance and the amount of interest earned on the principal balance. Compared to a money market fund, stable value funds are typically able to provide a higher rate of return due to investing in longer term securities (three year average) versus money market funds (one year average). The comparison charts show the fluctuating value of a bond fund and the lower rates of a money market fund, comparing them to the stability of the Stable Value Fund. These are complex times with the uncertainties of the economy, the election and the markets. It is reassuring to be able to remind you that your Plan offers the Stable Value Fund with all of its unique benefits and features and we hope that this article has helped you learn mor
