Stable value pooled funds: Scenarios for rising rates and cash outflows
June 25, 2012
Relatively low volatility makes stable value funds attractive to many defined contribution plans. In general, such funds have performed well during past market crises. However, in the current low-interest-rate environment, some investors and contract providers worry that adverse market conditions and cash flow activity could impair fund performance. A Vanguard research paper, Stable value pooled funds: Scenarios for rising rates and cash outflows, puts two hypothetical cash-withdrawal scenarios to the test.
- All investments are subject to risk.
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