Summer 2011
New Stable Asset Fund Offering Now Option
For Managed Plans
As reported in the spring issue of Mainspring Partner, Standard Insurance Company now offers a stable value solution on its Net Asset Value (NAV) investment platform using Reliance Trust as the custodian. As of July 1, The Standard's Stable Asset Fund is available with our Mainspring Managed account service to NAV plans paired with Reliance as the custodian.
Sponsors of these plans will now be able to select the fund as a cash equivalent option within the pre-mixed portfolios offered to plan participants. Plan sponsors select the fund for use within their portfolios using the same criteria they apply to any fund such as good returns, appropriate risk profile and management.
Starting this month, we are able to offer the Stable Asset Fund for both Mainspring Managed and non-managed plans on our group annuity investment platform. The fund is now available on our group annuity platform and for custodians other than Reliance as approvals are received and essential systems work is completed. The group annuity platform is the first expansion, with availability to all plans, including those using the Mainspring Managed service, beginning this month. The Stable Asset Fund is available in all states and the District of Columbia (except New York).
Fund Details
The Standard's Stable Asset Fund invests the deposits of plan participants as part of the general account assets of Standard Insurance Company. The general account includes its fixed income securities portfolio and commercial mortgage loan portfolio. The resulting Stable Asset Fund provides participants with a guaranteed return1 of principal, along with attractive crediting rates and 100 percent liquidity.
In addition to 401(k), 401(a) and defined benefit plans, the interest-bearing account fund is available to 403(b) plans, which have limited access to stable asset funds. The fund may represent a more competitive investment alternative relative to current money market options.
The Standard recently hired a new Stable Asset Fund sales director to market the fund to institutional partners who can offer it to plan sponsors outside of The Standard's Retirement Plans business.
1The guarantee is based on the claims-paying ability of Standard Insurance Company.
Questions?
If you would like to find out more about The Standard's Stable Asset Fund, contact your pension consultant.