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Home > Library > Stable Times > Volume 3, Issue 3
The quarterly publication of the Stable Value Investment Association
Third Quarter 1999 • Volume 3 Issue 3
Why Stable Value Needs to be On-Board the
Asset Allocation Model Train
By Victor Gallo,
Jackson National Life
Sean Hanna's article puts some
real names behind the advice trend that we've all seen coming. I suspect
it is more like a train than a trend. Stable value can get on this train,
or risk missing it or, even worse, being run over by it.
We'll miss it to the extent that advice providers ignore stable value,
recognizing only the standard asset classes of cash, bonds, and equities.
While SVIA members are well aware of the role stable value has played,
and can play in participant portfolios, it cannot be assumed that the
advice providers share this knowledge.
We'll be run over if the providers recognize stable value in a way that
makes it seem unattractive relative to the competition.
Both of these risks stem from the relative obscurity and misunderstanding
of stable value. Isn't it only recently that we've seen the name "stable
value" mentioned in the mainstream financial press? And even in this
issue of our own industry publication, we see the question, "What
is stable value, anyway?" (Toward a New Model of Stable Value.) This
is why we need to keep in touch with the providers and work with them
to ensure that stable value is clearly defined and fairly evaluated when
advice is provided. SVIA has a task force which is trying to do just that.
Hopefully you will be at the Annual Forum to hear about the Task Force's
progress and to learn more about trends in asset allocation models.
Read Next: Toward A New Model of Stable Value
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