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Home > Library > Stable Times > Volume 6, Issue 4
The quarterly publication of the Stable Value Investment Association
Fourth Quarter 2002 • Volume 6 Issue 4
Data Reveals Positive Stable Value Growth & Cash Flows
By Kathleen Schillo, Hueler Analytics
In a time of market uncertainty, it is interesting to reflect upon the growth and cash flows of Stable Value. As of June 30, 2002, the
Hueler Analytics Stable Value Pooled Fund Universe represented $50 billion in pooled fund Stable Value assets. As seen in the table below,
assets for the funds represented in the Universe as of June 30, 2002 have more than doubled in the past five years resulting in a five-year
growth rate of 125%. In the last year alone, these funds have grown by 21%.
| Hueler Analytics Stable Value Pooled Fund Universe Assets* |
| Date |
Universe Assets |
| 06/30/1997 |
22,375,274,379 |
| 06/30/1998 |
25,433,181,468 |
| 06/30/1999 |
33,101,549,090 |
| 06/30/2000 |
35,579,492,936 |
| 06/30/2001 |
41,653,940,398 |
| 06/30/2002 |
50,397,695,513 |
| *Based on the pooled funds in the Universe as of 6/30/2002 |
| Hueler Analytics Stable Value Pooled Fund Universe Growth Rates: |
| 1 Year |
2 Year |
3 Year |
5 Year |
| 21% |
42% |
52% |
125% |
The separate account market segment represented by the FIRSTSource market data shows that the average cash flow as of June 30, 2002
was once again positive. Prior to first quarter 2001, the average Stable Value cash flow into separate accounts had been negative for
many years. Out of the last six quarters alone, three of the quarters have portrayed a positive average cash flow.
| FIRSTSource
Market Data: |
2nd Qtr. 2002 |
1st Qtr. 2002 |
4th Qtr. 2001 |
3rd Qtr. 2001 |
2nd Qtr. 2001 |
1st Qtr. 2001 |
4th Qtr. 2000 |
3rd Qtr. 2000 |
2nd Qtr. 2000 |
| 95% |
6.13% |
5.06% |
4.15% |
9.62% |
3.46% |
10.08% |
6.63% |
5.48% |
3.63% |
| 75% |
2.59% |
1.27% |
0.45% |
4.65% |
0.41% |
5.15% |
0.91% |
0.64% |
-0.55% |
| Average |
1.09% |
-0.24% |
-0.81% |
2.80% |
-0.81% |
2.67% |
-0.73% |
-0.97% |
-2.03% |
| 25% |
-0.42% |
-1.81% |
-2.43% |
0.66% |
-2.51% |
0.28% |
-2.58% |
-2.55% |
-3.72% |
| 5% |
-3.29% |
-5.24% |
-4.68% |
-2.17% |
-4.92% |
-4.93% |
-8.07% |
-6.15% |
-7.46% |
With the Dow Jones at 7286 on October 9th of this year, a level not seen since June of 1997, it is highly likely that the plans represented
in FIRSTSource will once again portray a positive average cash flow in third quarter. FIRSTSource market data encompasses approximately 300 plans
with $341 billion in total plan assets and $96 billion in Stable Value assets.
Read Next: Social Security Privatization: There Is a Role for Stable Value
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