The Stable Value Fund seeks to preserve both invested principal and earned interest, to earn a stable fixed income yield and to provide liquidity for member-directed disbursements.
Stable value funds are suitable for investors who are risk-averse and who want to safeguard the principal value of their accumulated savings while earning an attractive rate of interest. The Fund is suitable for investors who are looking for liquidity and stability of principal and earned interest, perhaps in anticipation of annuitizing their Accumulation Account balances, or to balance by using stable value in a portfolio with other more aggressive investments. Past performance is no guarantee of future results, but historically, Stable Value Funds have preserved principal and have accumulated interest throughout all interest rate cycles. The crediting rate of the Fund will fluctuate with changing interest rates.
Over long periods of time, the return to investors in this Fund will most likely fall short of the return to investors in any of the other Funds. However, Over shorter periods of time, the return to investors in this Fund could exceed the return to investors in the other Funds.
The Fund invests in high-quality fixed-income investments that may include guaranteed investment contracts issued by insurance companies, bank investment contracts, U.S. Treasuries and its agencies, asset-backed and mortgage backed securities, corporate bonds, and cash and cash equivalents such as Treasury Bills and commercial paper. Investment maturities are short to intermediate term (10 years or less).
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