SVIA Statistics Demonstrates Stable Value Funds Deliver Consistent, Positive Returns of 2.86%

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At a time when money market rates continue to hover near 0%, the survey demonstrates the continuing strength of the value proposition of the stable value asset class to retirement plans offering stable value and the plan participants investing in stable value funds. The average crediting rate or return was 2.86% in the fourth quarter. On an annualized basis, participants represented by the assets in the survey collectively earned nearly $11 billion more in return on their savings than if they had invested in money market funds over the same period.

The Stable Value Investment Association (SVIA) recently published its Stable Value Quarterly Characteristics Survey, covering the fourth quarter of 2011. The data in the survey covered 24 stable value managers who collectively manage $440 billion in stable value assets.

At a time when money market rates continue to hover near 0%, the survey demonstrates the continuing strength of the value proposition of the stable value asset class to retirement plans offering stable value and the plan participants investing in stable value funds. The average crediting rate or return was 2.86% in the fourth quarter. On an annualized basis, participants represented by the assets in the survey collectively earned nearly $11 billion more in return on their savings than if they had invested in money market funds over the same period.

The survey also showed that stable value continues to be managed in accordance with its conservative principles, with average duration of around 2.7 years and average credit quality in excess of AA.

About Stable Value Funds:
Stable value funds are capital preservation investment options available in 401(k) plans and other types of defined contribution plans and some tuition assistance programs such as 529 plans. They are generally invested in a diversified portfolio of high quality fixed income investments that are protected against interest rate volatility by contracts from banks and insurance companies. Stable value funds are designed to preserve capital while providing steady, consistent, positive returns for plan participants. Stable value funds are a conservative and low risk investment compared to other investments offered in defined contribution plans.

About the Stable Value Investment Association:
SVIA, the Stable Value Investment Association, is a non-profit association dedicated to educating the public on the importance of saving and investing for retirement and the contribution that stable value funds can make in providing for a financially secure retirement. SVIA membership represents all segments of the stable value investment community, including public and private plan sponsors, insurance companies, banks, investment managers and consultants.

SVIA is dedicated to providing leadership and representation before the media, educators, legislators, regulators and opinion leaders, and to providing a forum for the exchange of ideas and discussion of retirement investment and saving issues. The Association is further committed to supporting public and private plan sponsor members in the fulfillment of their fiduciary obligations.

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Gina Mitchell
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