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It’s in the Message
An Outlook for 2002

Stable value has enjoyed increasing success and media attention over the past year. Many in the stable value community have wondered how to maintain this momentum and capitalize on it. SVIA’s Chairman, Eric Kirsch, provides the answer, “It’s all in the message!”

Kirsch recently expressed his opinion that 2002 will present good opportunities for stable value. As investors look to diversify their accounts, to protect themselves from volatility, they will seek stable value. To this end, investor education will be vital. SVIA and its membership must work to ensure that the name “stable value” is mainstreamed into the conservative investment lexicon, along side money markets and intermediate bonds. In order to accomplish this, SVIA will take its case to the media.

SVIA will target both mainstream newspapers and trade press across the country to reach out to a wide audience, including investors, plan sponsors, consultants, and financial advisors. In addition, SVIA also hopes to expand this media plan to television an online outlets to maximize its audience. To jump start this effort, the SVIA Board will work with press in cities they visit during quarterly meetings across the country, including San Francisco, New York, and New Orleans.

On a second front, SVIA will visit with policy makers to educate them on the positive attributes of stable value and the protections the product offers. Both the executive and legislative branches are exploring ways to avoid another Enron-type situation, offering a unique opportunity to spread the word. Members of the SVIA Government Relations Committee will travel to Washington, DC, to meet with Senators, Representatives, and staff at the Department of Labor.

In addition to traditional stable value markets, Kirsch thinks that 2002 should offer growth in newer areas. Stable value mutual funds will offer great opportunities in the coming year. There is good growth potential in this burgeoning area as existing funds garner greater respect and notoriety, enticing new players into the market. In addition to these domestic prospects, Kirsch believes that European and Asian markets are on the horizon for stable value.

SVIA is working to make 2002 a benchmark year for stable value. Kirsch has the winning formula to make this happen, “Strong investor appetite, combined with an active public awareness program, will lead to a robust year for stable value.”

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