PNC Stable value fund class z

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edvest
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Joined: Sat Oct 06, 2018 3:27 pm

PNC Stable value fund class z

Post by edvest » Wed Oct 24, 2018 6:22 pm

PNC STABLE VALUE FUND - CLASS Z, is in the lineup of 401k funds available for me to invest in, but morningstar/others don't seem to have any analysis on it.

Any reason why?

It seems to be doing better than the Wells Fargo Core Bond and Vanguard Total Bond Market Index Funds I'm in.

Tu

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welderwannabe
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Re: PNC Stable value fund class z

Post by welderwannabe » Wed Oct 24, 2018 6:44 pm

Stable values are somewhat proprietary and specific to the 401k company you are with. They are opaque investments and not tracked by morningstar or others.

You can read up on them if you like, but they are often offered by insurance companies and you have some concentrated risk with them. In many cases you you are investing in the insurance company's liabilities. In others they are simply bond fund investments with a Guaranteed Investment Contract
(provided by an insurance company) wrapped around them. They vary from provider to provider.

Some people love them, others fear them due the lack of transparency with them.

In general they are very safe investments. I put 50% of my fixed income allocation in my 401k in my stable value, which is offered by Lincoln in my case. The other 50% of my fixed income allocation is in my bond fund offering. A properly operating stable value will not lose value in the event of rising interest rates, so that is why they are performing better than your bond choices now. Some stable values have rules around how and when you can sell them and move out of them so make sure you look into that if your investment horizon is short.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.

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edvest
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Re: PNC Stable value fund class z

Post by edvest » Wed Oct 24, 2018 6:57 pm

Thanks Weld, I'm 55% in two bonds funds which seem to keep going down. Do think I should move some into stable?

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welderwannabe
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Re: PNC Stable value fund class z

Post by welderwannabe » Wed Oct 24, 2018 7:10 pm

edvest wrote:
Wed Oct 24, 2018 6:57 pm
Thanks Weld, I'm 55% in two bonds funds which seem to keep going down. Do think I should move some into stable?
Well, I can tell you I keep half of my fixed income in a stable value, so in your shoes I would do that. The main drawback is when interest rates decline a bond fund me appreciate where a stable value won't...its "stable". The plus is they don't depreciate when interest rates rise. So what helps you in a rising rate environment hurts you in a lower rate environment.

You should see what the yield is on your stable value. Anything above 2.5% is a no brainer in my opinion...less than 2.5% you will want to think harder.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.

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edvest
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Re: PNC Stable value fund class z

Post by edvest » Wed Oct 24, 2018 7:25 pm

I found a pdf it's states "Annualized Performance" 2q/18 .49%, YTD .93%, 1Y1.80%, 3Y 1.59%, 5Y 1.55%, 10Y 2.06%. Which is no where near your
2. 5%.

My Well Fargo Core Bond is YTD -1.64%, 3M .06%, 1Y -1.35%, 3Y 1.37%, 5Y 2.28%, 10Y N/A,
Vanguard Total Bond Market Index isn't much better.

I'm in my early sixties and was hoping to retire at 65. I went though the 08/09 thing and saw what it can do to a portfolio, and how long it took to come back. Most of my portfolio was in stocks, 10% bonds right up to a month ago.

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edvest
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Re: PNC Stable value fund class z

Post by edvest » Thu Oct 25, 2018 5:52 am

Do you think I should move my bond balances into my stable fund?

Topic Author
edvest
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Re: PNC Stable value fund class z

Post by edvest » Thu Oct 25, 2018 6:29 am

Anyone?

UpperNwGuy
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Re: PNC Stable value fund class z

Post by UpperNwGuy » Thu Oct 25, 2018 6:45 am

I think you are giving up on your bond investments too soon. I would stay the course if I were in your situation.

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Nate79
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Re: PNC Stable value fund class z

Post by Nate79 » Thu Oct 25, 2018 11:10 am

Does your prospectus show a 7 day yield? My SVF thru TR Price is at 2.24%.

TBillT
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Re: PNC Stable value fund class z

Post by TBillT » Thu Oct 25, 2018 11:28 am

As a good benchmark, you can look at T Rowe Price SVF which has historically been attractive rate of return.
I think it is only running about 2% right now.

My Va 529 fund I think has Ivesco SVF, which has been less return than T Rowe, but maybe catching up.
But at the current time, SVF's are not increasing like money market funds...you'd think they might be better.

Northern Flicker
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Re: PNC Stable value fund class z

Post by Northern Flicker » Fri Oct 26, 2018 2:43 am

edvest wrote:
Wed Oct 24, 2018 6:22 pm
PNC STABLE VALUE FUND - CLASS Z, is in the lineup of 401k funds available for me to invest in, but morningstar/others don't seem to have any analysis on it.

Any reason why?

It seems to be doing better than the Wells Fargo Core Bond and Vanguard Total Bond Market Index Funds I'm in.

Tu
Here is some good info:

https://stablevalue.org/media/misc/Stable_Value_FAQ.pdf
Index fund investor since 1987.

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