This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Prudential Retirement White Paper: Stable Value A Safer And More Secure Investment Option Post Financial Crisis

Prudential Retirement, a business unit of Prudential Financial, Inc. (NYSE:PRU), today released a new white paper, Assessing Stable Value After 2008: Performing as Designed .”

“Stable value as an asset class performed as it was designed to do during the financial crisis,” said Michael L. Davis, senior vice president and head of Stable Value, Prudential Retirement. “This paper explores how the changes in the stable value industry have made the asset class a safer and more secure investment option, and underscores its important role as a cornerstone of the retirement strategy for millions of plan participants.”

The white paper highlights a number of steps that have been taken to increase the security of the asset class, including a more thorough and accurate risk assessment for the asset class and more conservative investment guidelines making stable value more resistant to future market dislocations.

The white paper notes that stable value has continued to generate strong relative performance and deliver guaranteed yields comparable to intermediate-term bond funds, but with low volatility comparable to that of money market funds. With strong plan participant demand, between 2007 and 2012, savings entrusted to stable value rose from $416 billion to $645.5 billion.

Davis, who joined Prudential in November 2012 from the U.S. Department of Labor’s Employee Benefit Security Administration, notes the stable value marketplace in 2013 differs from the one that existed in 2008.

“The provider landscape has changed and while these changes may have been disruptive in the short term, they are now heralding a return to the conservative investment strategies, risk parameters and performance goals that characterized the asset class when it debuted four decades ago.”

As of Dec. 31, 2012, Prudential Retirement has $106.9 billion in stable value retirement account values. Guarantees are based on the claims-paying ability of the issuing insurance company and are subject to certain limitations, terms and conditions.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs