New stand-alone Stable Value Static option
my529 is offering a new Static investment option, a stand-alone Stable Value investment option with a 100% allocation of the PIMCO Interest Income Fund.
The new Static portfolio aims to provide a stable return while preserving capital.
The PIMCO Interest Income Fund is currently an underlying fund within the four predetermined Age-Based investment options, and is available as a selection in the Customized investment options.
For any clients invested in a Customized allocation constructed entirely of the PIMCO Interest Income Fund, it may be beneficial to look at the new Stable Value investment option.
The fee difference between the new Stable Value option and a Customized option of 100% PIMCO is 3 basis points.
The Stable Value portfolio features a total Asset-Based Fee of 0.235%. Asset-Based Fees include the Underlying Fund Expense (currently 0.115%) and the Administrative Asset Fee (currently 0.12%).
Within the Customized options, selecting a 100% allocation of the PIMCO Interest Income Fund will incur the same Underlying Fund Expense (0.115%), but the Administrative Asset Fee is higher for Customized investment options (0.15%), making the total Asset-Based Fee for a Customized option with that allocation 0.265%.