Stable value—the very name conjures up a picture of, well,stability.

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And that’s apparently working for defined contribution plan sponsors,who are increasingly regarding stable value as a more attractivecapital preservation option for plan participants.

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Read: 3 ways sponsors can meet DC plangoals

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That’s according to MetLife’s 2015 Stable Value Study, whichalso found that most stable value fund providers and advisors whowere interviewed for the study and were familiar with money marketfund (MMF) reforms predicted that the use of money market funds indefined contribution plans will decline over the next fewyears.

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A whopping 82 percent of DC plan sponsors familiar with thoseMMF reforms—SEC amendments to the rules governing such funds—regardstable value more highly than alternatives.

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And 77 percent of large plan sponsors added stable value optionsover the past two years because stable value provides betterreturns. That’s up from just 38 percent in the 2013 version of thestudy.

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Providing a capital preservation option was the leading reasonplan sponsors gave for offering stable value, at 65 percent. Fiftypercent cited a guaranteed rate of return, and 49 percent said thereason was better returns compared to money market and othercapital preservation options.

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But there are other factors that play into the advisability ofstable value as an option in DC plans—not that those factors areall that well known.

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The study found that only 17 percent of plan sponsors and 23percent of plan advisors realize that stablevalue returns have exceed inflation over the past 25 years.

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They’re not all that well informed about stable value’sperformance against money market funds, either. The study foundthat almost half of sponsors (47 percent) are unaware that stablevalue returns have outperformed money market returns: 22 percentbelieve that stable value and money market returns have been aboutequal and 21 percent don’t know how the returns compare.

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Additionally, four percent actually believe that money marketfunds have performed better than stable value over this timeperiod.

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