Transamerica Stable Value Solutions provides stable value products
to retirement and savings markets. Stable value is a unique asset class designed
to offer retirement or savings plan participants the returns associated with
intermediate bond funds without the volatility.
Transamerica Stable Value Solutions' stable value products are incorporated into defined
contribution plans such as 401(k) and 457 plans.
401(k) plans hold more than $2 trillion in assets and are growing in excess of 10%
per year, according to the research firm Spectrem Group. The 1,400 largest U.S.
defined contribution plans hold over half, or $1 trillion, of these assets. And,
more than 22% of the assets within these plans are invested in stable value products,
according to HR consultant firm Hewitt Associates.
Among small to mid-size plans, stable value allocations are smaller because many
providers -- by restricting plan options to only mutual funds -- have blocked access
to stable value. As more and more of these plans start using collective trust vehicles
(particularly stable value pooled funds), stable value allocations will catch up
with the larger plans in the country.
Public Defined Contribution/457
Public defined contribution plans, generically referred to as 457 plans, are estimated
to comprise a $140 billion market with nearly 40% of balances directed to stable
value. This market is rapidly growing as a result of a trend in which state governments
migrate into these defined contribution plans from defined benefit plans.
These union sponsored plans, also known as multi-employer plans, have used a number
of stable value products over the years. Taft-Hartley 401(k)s are similar to the