SOURCE: BrightScope


November 14, 2011 09:00 ET

BrightScope Reveals the Top 20 Stable Value Funds Held in America's 401k Plans

List Delivers Transparency Into the Top Guaranteed Investment Contracts Held in Retirement Plans Amid a Difficult Environment

SAN DIEGO, CA--(Marketwire - Nov 14, 2011) - BrightScope (, a leading provider of independent financial information and investment research, today announced the Top 20 Stable Value Funds by total distribution for the 401k and defined contribution industry. This list is part of a series of rankings BrightScope will regularly publish to provide investment managers, mutual fund companies, investors, and others with more insight into the top funds and managers in the retirement marketplace. The proliferation of this critical information will dramatically increase the efficiency of the marketplace and lead to lower cost plans and better outcomes for the 60 million Americans who depend on their 401k plan for retirement.

"As seen from the pending liquidation of the Schwab Stable Value Fund and the increase in general disclosure issues, the environment to operate these funds is increasing in volatility," said Brooks Herman, Head of Research for BrightScope. "Stable Value Funds represent about $460B of the defined contribution assets in our database and the Schwab Stable Value fund is $4.6B, about 1% of the market."

"Before the financial crisis, the cost to wrap a stable value fund was somewhere on the order of eight to ten basis points," said Ryan Alfred President and co-founder of BrightScope. "After the crisis, insurance companies tripled or even quadrupled their pricing to where now it is difficult to find pricing under 30 basis points. Many of the wrap issuers simply left the market entirely and most have not returned. This is affecting just about every single stable value fund, and many funds are facing the same fate."

Since its infancy, the 401k marketplace has suffered from a lack of quality data that is comprehensive enough to be useful for most strategic functions. Historically, it has been virtually impossible to determine a specific mutual fund's total distribution in 401k plans. BrightScope's revolutionary database includes a detailed investment menu on more than 46,000 plans, representing nearly 90 percent of all the assets in 401ks. With this dataset, BrightScope is able to provide detailed analysis of total fund distributions.

The Top 20 Stable Value Funds by total distribution include:

1. TIAA-CREF Traditional Annuity
2. Fidelity Managed Income Portfolio
3. SSgA Stable Value Fund
4. Vanguard Retirement Savings Trust
5. T. Rowe Price Stable Value Fund
6. JPMorgan Sub-Advised Guaranteed Investment Contracts
7. Bank of America Retirement Preservation Trust
8. SSgA Sub-Advised Guaranteed Investment Contracts
9. Wells Fargo Stable Return Trust
10. Prudential Guaranteed Income Fund
11. Promark Income Fund II
12. AT&T Interest Income Fund
13. Monumental Life Sub-Advised Guaranteed Investment Contracts
14. Invesco Stable Value Fund
15. Charles Schwab Stable Value Fund
16. Putnam Stable Value Fund
17. MassMutual Guaranteed Interest Account
18. JPMorgan Stable Value Fund
19. AIG Sub-Advised Guaranteed Investment Contracts
20. Fidelity Stable Value Fund

BrightScope's technology uncovers audited financial data on investment funds held within real 401k plans. The BrightScope database is superior to the industry's traditional survey-based approach. When surveys are done, they usually capture no more than 10 percent of total distribution and skew heavily towards funds prominent in the survey company's client base. Through BrightScope Beacon, investment managers can access comprehensive data, giving them a transparent view into their own fund distribution, as well as the distribution of their competitors.

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About BrightScope
BrightScope is a financial information company that brings transparency to opaque markets through independent research and analysis. Delivered through web-based software, BrightScope data drives better decision-making for individual investors, corporate plan sponsors, asset managers, broker-dealers, and financial advisors. The BrightScope Rating™, developed in partnership with leading independent 401k fiduciaries, reviews more than 200 unique data inputs per plan and calculates a single numerical score which defines plan quality at the company level. In April 2011, the company launched BrightScope Advisor Pages™, the first comprehensive and publicly available directory of financial advisors designed to help consumers discover information and conduct due diligence on wealth management professionals. BrightScope also markets a suite of data analytics software products to Fortune 1000 companies, asset managers, broker-dealers, financial advisors, and other market participants. Public ratings for more than 46,000 retirement plans as well as rating definitions, criteria and methodologies, and information on more than 450,000 financial advisors are available for free at

Contact Information

  • Katie Carlson
    Atomic PR for BrightScope
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