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Academic Study Sheds New Light on the Importance of Stable Value to Defined Contribution Plans
January 12th Overview(Power Point, 98KB)
Overview Power Point Presentation for January 12th meeting.
Why Investors Want Stable Value Funds (MS Word, 75.5KB)
Explains the unique characteristics that draw investors to Stable Value Funds and the benefits of these funds.
Asset Allocation Models: A Stable Value Perspective
Provides insights into asset allocation models, an increasingly popular means to provide 401(k) participants
assistance in their investment decisions. The "Perspective" provides: (1) an analysis and evaluation of how
these models treat stable value funds; (2) how stable value should be modeled to recognize the unique
characteristics of stable value: returns similar to intermediate bonds minus the volatility, and liquidity
and principal preservation characteristics of money market funds, and (3) how models should work to consider
plan participants’ multiple savings and investing goals, risk tolerances, and timeframes.
The Case for Stable Value in 529 Education Assistance Plans
Perspectives
Perspectives: 98-2 (PDF, 294KB)
Perspectives: 98-1 (PDF, 222KB)
Monographs
Monograph: No. 28 (PDF, 163KB)
Title: Stable Value Distinctions: Fixed Maturity vs. Evergreen Synthetics
Author: Allan Fen
Date of Publication: September 1997
Since synthetic GICs were introduced into stable value funds in the late 80s, their popularity has soared.
Monograph: No. 27 (PDF, 235KB)
Title: Do Defined Benefit Concepts Make Sense for Defined Contribution Plans?
Author: Judy Markland
Date of Publication: June 1997
This paper examines the investment need differences between defined contribution and defined benefit plans and
discusses individuals' attitudes towards risk and reward.
Monograph: No. 25 (PDF, 72KB)
Title: "Alpha Synthetic GICs"
Author: Mark P. Speciale
Date of Publication: February 1996
Since their inception 20 years ago, guaranteed investment contracts (GICs) have developed into a $300 billion
market with annual sales of over $47 billion.
Monograph: No. 24 (PDF, 49.5KB)
Title: "Alpha" GICs: Synthetic GICs Without the Pitfalls
Author: Ty Danco, John K. Dwight & Timothy O'Grady
Date of Publication: February 1996
A safer, higher yielding GIC alternative has been the holy grail of defined contribution plan sponsors ever
since insurance industry downgrades and defaults began several years ago.
Monograph: No. 23 (PDF, 276KB)
Title: The Wrap Factor: Understanding How Investment Risks Affect Synthetic GIC Performance
Author: Joel L. Coleman, FSA, CFA
Date of Publication: January 1996
ASynthetic GICs first appeared on the stable value scene largely as a result of defensive tactics by plan sponsors, managers,
and advisors who wanted to limit their exposure to the financial services industry.
Monograph: No. 22 (PDF, 87.5KB)
Title: Evaluating the Credit Risk of Alternative GIC Products
Author: Victor A. Gallo
Date of Publication: November 1995
Alternative GICs - which include synthetic, separate account, and collateralized GICs -- have moved from a dead stand still
in 1990 to capturing nearly 50% of all new stable value placements in 1994
Monograph: No. 21 (PDF, 85KB)
Title: The Pro's and Con's of Structured Investment Contracts
Author: Dan Pasko, ASA
Date of Publication: October 1995
Indispensable investment instrument or dangerous derivatives dabbling?
Monograph: No. 20 (PDF, 37.5KB)
Title: Calculating Fair Value for Investment Contracts
Author: Victor Gallo
Date of Publication: July 1995
Under AICPA rules on accounting for investment contracts (SOP 94-4),defined contribution plan financial statements must
include several footnote disclosure.
Monograph: No. 19 (PDF, 55.5KB)
Title: GIC Discontinuance Provisions
Author: Garrison Urette
Date of Publication: May 1995
There are circumstances in which discontinuing a GIC contract from a defined contribution plan may be a necessary or
prudent investment decision.
Monograph: No. 18 (PDF, 84KB)
Title: Consideration in the Valuation of Impaired GIC Contracts
Author: Bruce Vane
Date of Publication: February 1995
Several decisions are required of the plan sponsor in evaluating a GIC contract issued by an impaired insurer, under
which scheduled payments have been jeopardized or already missed.
Monograph: No. 17 (PDF, 41.5KB)
Title: Steve G. Finegan
Author: October 1994
Date of Publication: February 1996
By developing and using video (and interactive multimedia) educational programs, plan sponsors can communicate investment
values that positively influence participant attitudes and behaviors in the direction of enrollment and saving.
Monograph: No. 16 (PDF, 62KB)
Title: Evaluating GIC Performance
Author: Ty Danco & Tom Gibson
Date of Publication: October 1994
GIC/Stable Value performance evaluation is one of the most difficult measurement tasks for plan sponsors and consultants.
Monograph: No. 15 (PDF, 95.5KB)
Title: Considering a Synthetic GIC? Ask the Right Questions Before You Buy
Author: C. Robert Krebs, CFA
Date of Publication: August 1994
You have a basic knowledge of synthetic GICs.
Monograph: No. 14 (PDF, 76.5KB)
Title: GIC Alternatives: Contract Structure, Risk Sharing and Asset Composition
Author: George W. Fenn
Date of Publication: April 29, 1994
Guaranteed investment contracts (GICs) have proved to be among the most popular life insurance pension products ever developed.
Monograph: No. 13 (PDF, 260KB)
Title: A "Common Sense" Guide to Alternatives & Synthetics: An Outline of Legal Issues
Author: Alfred A. Turco
The world of Alternative & Synthetic GICs is a complex world, filled with novel contracts and emerging legal
and regulatory issues.
Monograph: No. 12 (PDF, 81.5KB)
Title: Performance Measurement for GIC Portfolios
Author: Allan Fen
Date of Publication: November 1993
The quest for a suitable method to measure performance for portfolios of GIC sand other book valued investments has been pursued
for a number of years with limited success.
Monograph: No. 11 (PDF, 66KB)
Title: A Presentation of Pertinent Questions and Answers Concerning Contract Language and Portfolio
Structuring in Today's GIC Marketplace
Author: William F. Vyskocil
Date of Publication: September 1993
The stable asset marketplace has experienced dramatic changes in recent years.
Monograph: No. 10 (PDF, 79KB)
Title: Canadian Life Insurance Companies in the United States
Author: Robert K. Leach, FSA, MAA & Gerald Hume
Date of Publication: August 1993
Canadian life insurance companies have a long history in the United States as do U.S. Companies in Canada.
Monograph: No. 9 (PDF, 99KB)
Title: Coping with the New Investment Options for Book Value Funds: A Primer
for Plan Sponsors
Author: Judith Markland
Date of Publication: April 1993
Over the last twenty years, the most typical "conservative" or fixed income option in defined contribution plans evolved from a
government bond fund to a GIC fund.
Monograph: No. 8 (PDF, 251KB)
Title: Getting More Kick from a GIC
Author: Joseph J. Buff & Mitchell R. Katcher
Date of Publication: April 1993
Increased competition and public concerns over the safety of life insurance companies are threatening the industry's share of the
retirement savings market.
Monograph: No. 7 (PDF, 68KB)
Title: 404(c) Final Regulations: Is the Third Time a Charm?
Author: David C. Veeneman
Date of Publication: February 1993
On October 13, 1992, the Department of Labor (DOL) released its final regulation under ERISA Section 404(c).
Monograph: No. 6 (PDF, 92.5KB)
Title: Separate Account GIC Alternatives
Author: CBrian K. Haendiges
Date of Publication: January 1993
The marketplace for products sold to the "fixed" funds of defined contribution plans has undergone dramatic changes in the last
two years, and continues to change at a rapid pace.
Monograph: No. 5 (PDF, 72 KB)
Title: Guaranteed Interest Contracts: An Overview
Author: The GIC Information Council
Date of Publication: 1992
The objective of this Overview is to help you understand what a Guaranteed Interest Contract (GIC) is, how it is bought and sold and how
pension plans use GICs as funding vehicles for plan assets.
Monograph: No. 4 (PDF, 148KB)
Title: The Changing Landscape of Life Insurance: A Regulatory and Policyholder Perspective
Author: Arthur Fliegelman
Date of Publication: August 1992
Insurance Company Investments and Solvency: Comments to the NAIC's Solvency Symposium.
Monograph: No. 3 (PDF, 186KB)
Title: Separate Account GIC's: One Solution for Today's GIC Market
Author: Victor A. Gallo
Date of Publication: May 1992
While there are sure to be variations in the specifics of different companies' products, separate account GICS generally work like this.
Monograph: No. 2 (PDF, 91KB)
Title: Diversification: The Foundation of Sound GIC Portfolio Management
Author: Joseph B. Bellersen, Jr.
Date of Publication: October 1991
Guaranteed Investment Contract management is no longer merely a theory.
Monograph: No. 1 (PDF, 65KB)
Title: Evaluating GIC Product Alternatives
Author: Victor A. Gallo
Date of Publication: September 1991
In the old days, purchasing a GIC was a relatively simple process.
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