Stable Value Funds Ride A Wave Of Rising Fees And Popularity In 401(k) Plans, Despite Schwab's Exit

 

 

Charles Schwab Corp. last week became the latest provider of a stable value product to exit the business. Citing difficulties in securing wrap guarantees, Schwab sais it would liquidate its $7.6 billion fund.

 

But Pensions and Investments reports Schwab's exit runs counter to a broader trend in the 401(k) plans business. Wrap provders are reversing the retreat from stable value products that followed the disaster of 2008. Why? Fatter fees.  

 

 

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