According to Hueler’s FIRSTSource Market data it appears that while first quarter 2001 and third quarter 2001 showed the strongest positive cash
inflows into stable value in years, fourth quarter 2001 cash flows were more in line with recent trends. While second and fourth quarters didn’t
show significant positive stable value in-flows, it is important to note that the allocation to the Stable Value Asset Class as a percent of all
Plan Assets rose from 21% as of 12/31/00 to 26% on 12/31/01. Approximately half of the allocation increase can be attributed due to cash flows,
with the remaining half being attributed to the negative returns of equity investments. With all of the proposals in Congress and attention from
the media related to company stock in 401(k) plans, it will be interesting to see if first quarter 2002 shows a positive shift once again into
stable value. FIRSTSource Market data encompasses approximately 340 plans with $354 billion in total plan assets and $92 billion in stable value
assets.
|
Asset Class
|
12/31/2001
|
12/31/2000
|
|
Stable Value/GIC
|
26.03%
|
20.96%
|
|
Balanced Funds
|
4.84%
|
5.29%
|
|
Company Stock
|
22.75%
|
25.65%
|
|
Equity
|
34.35%
|
38.17%
|
|
Fixed Income
|
2.27%
|
1.23%
|
|
International Equity
|
2.36%
|
2.80%
|
|
Life Cycle Funds
|
2.32%
|
1.73%
|
|
Money Market/Short Fixed Income
|
1.45%
|
1.42%
|
|
Other
|
3.62%
|
2.74%
|
