Stable Value Continues to Deliver on Its Promise
By Randy Myers In an uncertain economic environment, stable value funds have continued to deliver to investors what they have long promised–long-term returns comparable to those available from intermediate-term bond funds but without the corresponding short-term volatility–SVIA president Gina Mitchell told participants at the organization’s 2010 Fall Forum in Washington, D.C. Since the end of […]
Why Stable Value Makes Sense as a Source of Retirement Income
By Randy Myers Many financial experts are touting immediate annuities as a tool for generating retirement income. Behavioral economics suggests they may want to look at stable value funds, too. The problem with immediate annuities, author John Nelson told participants at the 2010 SVIA Fall Forum, is that they require retirees to exchange a lump […]
Editor’s Corner: Stable Value: Ever Evolving
By James King, Head of Prudential Retirement’s Stable Value Markets Group Stable value is a lot like Clark Kent?mild mannered and rather undistinguishable?until a threat looms. Like Kent’s alter-ego Superman, stable value kicks into hero mode to preserve participants’ capital and provide consistent, positive returns in any given economic cycle. With its ever-evolving nature, like […]
A Fine Line: Can Wrap Contract Provisions Become Too Restrictive?
By Randy Myers The stable value industry sailed through the financial crisis of 2008 with minimal disruptions. Market-to-book-value ratios for the average stable value fund fell during the market downturn and have since recovered on average to better than 100 percent. Throughout the market volatility of the past three years, investors in stable value funds […]
401(k) Balances Improving, But Participants Still Need to Save More
By Randy Myers The average 401(k) account balance has improved significantly since the stock market downturn that ran from late 2007 to early 2009, but Americans still need to save more for retirement, according to Winfield Evans, leader of investment strategy for Aon Hewitt’s defined contribution outsourcing business. Participants in 401(k) plans enjoyed a median […]
Stable Times Volume 15 Issue 2
The biannual publication of the Stable Value Investment Association that covers both industry concerns and association activities.
Stable Times Volume 15 Issue 1
The biannual publication of the Stable Value Investment Association that covers both industry concerns and association activities.
Survey Confirms Trend Toward More Restrictive Wrap Contracts
By Randy Myers As the stable value industry has moved to tighten wrap contract terms for stable value funds over the past two years, it has gotten some pushback from an important constituency–employers who make the ultimate decision on whether to include stable value funds in their 401(k) plan investment lineups. “We’re getting some resistance […]
Wrap Issuer Makes Case for Tighter Stable Value Investment Guidelines
By Randy Myers The push by wrap issuers for more conservative stable value investment guidelines may have heightened the tension between issuers and fund managers, but it doesn’t appear to be threatening their symbiotic relationship. In a panel discussion at the SVIA’s 2010 Spring Seminar, for example, one leading fund manager conceded that his company […]