Not exact matches
If I were managing assets for a pension
fund, I would assemble a
stable of new - ish
value managers, and that would be 70 % of my portfolio, with 30 % investment grade bonds.
The investment
manager for the
stable value fund invests in a portfolio of intermediate term bonds with an average duration of approximately three to four years that will provide a significantly higher interest rate, or yield, than for example the short - term (average 60 days or less) securities typically held by a money market
fund.
Given the history of money market
funds breaking the buck, it is possible that the
fund manager might pony up the
funds to make the
stable value fund whole, but I wouldn't rely on that.
Stable value manager fees are typically higher than those for bond
funds.