Rising interest rates can help increase the yields of stable value funds, but they can also create unexpected headwinds.
1 MetLife “2022 Stable Value Study”. 2022.
2 Investment Company Institute’s Retirement Plan Assets as of first quarter 2022
3 Market value is calculated as the fair market value of the underlying securities based on the price they can be bought or sold.
4 Book value is calculated as initial principal + accumulated interest + additional deposits - minus withdrawals and expenses.
5 There may be other options or restrictions that will be detailed in the stable value fund offering statement.
Certain portions of this article were written by Hartford Funds and other portions were written by Fred Reish.
All information provided is for informational and educational purposes only and is not intended to provide investment, tax, accounting, or legal advice. As with all matters of an investment, tax, or legal nature, you should consult with a qualified tax or legal professional regarding your specific legal or tax situation, as applicable. The preceding is not intended to be a recommendation or advice. Tax laws and regulations are complex and subject to change.
The views expressed here are those of the author and should not be construed as investment advice. They are based on available information and are subject to change without notice. Portfolio positioning is at the discretion of the individual portfolio management teams; individual portfolio management teams, and different fund sub-advisers, may hold different views and may make different investment decisions for different clients or portfolios. This material and/or its contents are current as of the time of writing and may not be reproduced or distributed in whole or in part, for any purpose, without the express written consent of Hartford Funds.
The views expressed here are those of Fred Reish. They should not be construed as investment advice or as the views of Hartford Funds or the employees of Hartford Funds. They are based on available information and are subject to change without notice. The information above is intended as general information and is not intended to provide, nor may it be construed as providing, tax, accounting or legal advice. As with all matters of a tax or legal nature, please consult with your tax or legal counsel for advice. This material and/or its contents are current at the time of writing and may not be reproduced or distributed in whole or in part, for any purpose, without the express written consent of Fred Reish.
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