Research

Stable value for capital preservation and diversification

Stable value strategies offer principal preservation and competitive income that have the potential to outpace inflation, with limited volatility.

By: David DeBiase Rob Galusza Julian Potenza Sean Walker
Updated: 4/16/2025
Key Takeaways
  • Stable value strategies are conservative retirement investments that have performed well relative to other principal preservation strategies in varying market and interest rate environments.*
  • Historically, stable value strategies have provided attractive diversification benefits in 401(k) plans, and have generally generated yields that have outpaced inflation.*
  • In volatile interest rate environments, stable value strategies can be appealing because of their short duration and potential for steady returns.
  • Plan sponsors should be aware of the unique construction of stable value strategies and portfolio management considerations.
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* See Exhibits 1 and 2 in full paper. Past performance is no guarantee of future results.

Diversification does not ensure a profit or guarantee against a loss.


  • For important information, see the full linked content.
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