Last year, there was a big scandal over mutual fund pricing, and non-401 (k)-
type stable value funds came under the microscope because of the obvious difference between the value of the assets and the stated NAV of the funds.
Not exact matches
While the investment objectives of these products are essentially the same — preserving capital, generating relatively attractive
stable returns while trending rates, and providing liquidity for benefit payments1 to participants at book
value — there are nuances to each product
type and additional features that should be investigated.
«We are pleased to bring a
stable value solution to plan
types that haven't had many choices,» says Paul Chong, senior vice president of CUNA Mutual Retirement Solutions.
Having served the 401 (k) and defined benefit plan
types for more than 30 years, this is the first time the company has offered the non-profit sector a
stable value option, according to the firm.
Unlike many
types of
stable value accounts, CUNA says this fund is «fully guaranteed and not subject to any
type of price fluctuation.»