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Assets Grow to $261 Billion in 2001 Reports Stable Value Funds Sixth Annual Investment and Policy Survey

Unlike most other assets in defined contribution plans, stable value did not experience a decline in terms of assets and had positive returns.  According to SVIA’s Stable Value Funds Sixth Annual Stable Value Investment and Policy Survey, Stable Value funds proved to be the one consistent, positive performer for most 401(k) participants.

The survey covers more than 120,000 defined contribution plans with over $261 billion in Stable Value assets. Data was collected from four distinct manager segments: external managers, internal managers, bank and investment company pools and full service life insurance companies.

The survey, which provides data on Stable Value funds for 2001 and 2000 found:

• Allocations to stable value rose to 29.1% at year-end 2001, the highest allocation in the six-year history of the survey. 

• Increased allocations plus positive returns also produced a 15% growth in stable value assets over the previous year.

• Stable value consistently outperformed money market funds. Stable value returns for 2001 were 6.45%. Over the past five years, Stable Value returns have ranged from 6.25% to 6.75% outperforming money market funds by an average of 125 basis points per year.

The survey reports a change in the Stable Value fund portfolio mix. For 2001, the survey found an asset mix of 8% cash, 37% GICs and other life company general account guaranteed products, 50% synthetics, 3% separate accounts, and 2% other. For 2000, the survey found an asset mix of 3% cash, 45% GICs, 46% synthetics, 4% separate accounts and 2% other.

The Sixth Annual Stable Value Investment and Policy Survey will be posted on the SVIA website to maximize your ability to use the data. The results are available in both pdf format and an excel file. Additionally, a summary spreadsheet of the different market segments will be available to allow data comparisons not presented in this tabulation. These items are located in Members Only Area.

Defined Contribution Plan Asset Allocation

Stable Value Allocation History

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