One of the most maligned and misunderstood, yet one of the most valuable, DC plan investments is the the insurance company general account investment-typically referred to as the “fixed fund,” the “guaranteed fund,” or even sometimes the “stable value fund”(in some of its iterations). These funds guarantee principal and a certain rate of return over a stated period of time. These funds usually (except in an inverted yield environment) provide a much higher rate of return over money market funds, while providing a measure of security of which money market funds can only dream. if the insurance company properly balances liquidity with the rate of return, it is an invaluable offering.
Continue Reading Insurance Company General Account DC Investments and the 408(b)(2) Conundrum: Balancing Capital, Liquidity and Transparency