How have stable value funds been affected by recent market turmoil?
Like other 401(k) investment options, stable value funds are not immune to current market stresses as demonstrated by lower market value to book value ratios and thus lower returns than previous years. However, because stable value funds are supported by well-diversified portfolios of high credit quality fixed income securities that have protections against interest rate volatility, they have been one of the few 401(k) investment options to provide positive returns even throughout this historic market upheaval.
