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.  

 

 

This Website Is For Financial Professionals Only


 

Let’s Make This Easy

 

We’re for you if you’re a fiduciary who:

--  relies on economic fundamentals

--  broadly diversifies a core of portfolios in low-expense funds and ETFs

--  strategically invests based on MPT

--  offers tax and financial planning advice

--  values thought leadership when bad news breaks 

--  likes the work of Fritz Meyer, Craig Israelsen, Bob Keebler or Andy Gluck

 

A4A courses accredited by the CFP Board, IWI, and NASBA power a special brand of independent financial advice. We also leverage the Web to benefit of consumers as well as fiduciaries enrolled in our classes.

 

JOIN