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Stable Value Investments

Consider for the conservative portion of your investment portfolio.

Stable value investments seek to provide relatively stable income that is comparable to shorter- to intermediate-term bonds over time but with preservation of capital.

  • They are designed to protect investor’s principal through insurance company and bank contracts, but are not federally insured or guaranteed like most Certificates of Deposit (CDs) and bank saving accounts, and it is possible to lose money by investing in them.
  • Their returns tend to follow the general direction of interest rates but may change more slowly than the overall market – a likely benefit to investors when rates are declining but may be a disadvantage when rates are increasing rapidly.
  • They are designed to meet the general liquidity needs of participants but typically impose restrictions on certain transfers and withdrawals.

Stable value investments should be considered as part of a diversified investment portfolio, especially for those with low tolerances for risk and/or shorter time horizons.

The VT PLUS Fund is a stable value pooled fund available in many 401/457 public sector retirement plans administered by ICMA-RC.

Learn more: VT PLUS Fund
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