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Editor's Corner

If the objective of STABLE TIMES is to plug readers into the pulse of the stable value industry, then this issue should certainly meet its goals.

We once again asked Randy Myers, a professional journalist, to cull together the insights of various industry members on two key issues that we face today: liquidity management and investment advice models. Both topics are on our radar screen because they are symptomatic of a new defined contribution investment paradigm- we now exist in an environment that is, and will continue to be, driven by daily Internet access and equity returns.

Randy's first article is on cash flow volatility, which is something of great interest to virtually all parties in the stable value industry, whether plan sponsor, investment manager, or book value contract provider. Randy polled a good sample of voices on cash flow trends and various techniques to meet what have been surprising levels of liquidity demands for many plans. His conclusion was favorable - that all stable value strategies held up well. Yet, we still have room to maneuver and refine our techniques. This issue of STABLE TIMES also includes statistics from Hueler Companies that quantifies the cash flow trends.

Randy's second contribution covered the new online advice models, and the modeling and interpretation challenges posed for stable value funds. It's important both to participants and members of the stable value industry, that these models accurately reflect the risk-return profile of stable value investments.

On the topic of asset allocation, we have included excerpts from a recent IOMA DC Plan Investing article that suggests some of the most attractive investment options that plan sponsors should consider adding in 2001. It wisely suggests that offering a good stable value fund as a safe haven is particularly important in today's marketplace.

Yet another important topic in our industry is presenting performance results for stable value investments. We have summarized a useful speech on this very topic by a performance presentation expert at this past April Institute for International Research conference.

Judy Markland once again has shared the insights gained from the 1999 Stable Value Fund Investment and Policy Survey. This time she focuses on the life company full service funds by presenting some interesting statistics and comparisons with other investment approaches.

Last, Gina Mitchell and the SVIA's Committee on Communications and Education has had a successful start at garnering favorable press for stable value funds. Jennifer Hudson's short piece highlights some of their success.

We think these topics will be of great interest to you. We hope to hear your opinions. We welcome letters, emails, or phone calls in response to these articles and we're always looking for new topics to include in upcoming issues.

Enjoy the summer!

Read Next: Stable Value: Challenging the Reach of Asset Allocation Models