Prudential White Paper Touts Benefits of Stable Value

September 19, 2011 ( - Following the volatility of the 2008 financial crisis, plan sponsors and participants have become more conservative investors seeking stable value products that preserve capital and deliver steady returns, according to a new white paper released by Prudential Retirement, an active issuer of stable value products to qualified defined contribution retirement plans.

Stable Value Products: An Increasingly Important Component of the U.S. Retirement Market details how stable value products, which combine an investment in fixed income securities with a guarantee of principal and accumulated earnings, can provide fiduciaries and participants with protections not generally available within other investment choices in retirement plans. That said, roughly half of retirement plans still lack a stable value investment option, according to a press release.  

The white paper also provides an overview, description and comparison of the wide range of stable value products and outcomes. The paper further explores the role stable value products will serve in the retirement market of the future and examines the benefits of the asset class to its primary alternatives; money market funds and investment grade intermediate term bond funds.  

The research also provides demonstrations of how a participant’s portfolio will perform when a stable value product is an investment option.  

“Prudential’s white paper, Stable Value Products: An Increasingly Important Component of the U.S. Retirement Market, provides advisers a tool to assist them in the evaluation of stable value options for their clients,” said Debra Roey, Vice President and Director of Retirement Plan Services for Philadelphia, PA.-based adviser Janney Montgomery Scott LLC, in the announcement. “The information in the paper is timely, as a greater percentage of plan assets are being allocated to this asset class. The format of the whitepaper is suitable for both educating our financial advisors as well as presenting to our clients as part of the plan review process.”  

The white paper is available here.