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Stable value funds have become today's most -2-

Some stable-value experts say that 401(k) plans' continued use of insurance-company general account stable value products deserves some scrutiny, given the potential drawbacks and the widespread availability of cheaper diversified stable value funds. "It just depends on all the options available" to the plan, Farkas said. The general account products "seem inferior in a lot of ways. But they have generally delivered on what they've promised."

Gina Mitchell, president of the Stable Value Investment Association, said the plan sponsors using those products "tend to be pretty sophisticated" and weigh the tradeoffs, including the potential returns and expense.

-Eleanor Laise

 

(END) Dow Jones Newswires

07-16-22 1038ET

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