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Immediate Release
May 21, 2002

STABLE VALUE ASSETS GROW TO $261 BILLION IN 2001 SVIA
Releases Sixth Annual Investment and Policy Survey

Last year, stable value returns beat virtually every other asset class used in 401(k) plans. According to the Sixth Annual SVIA Stable Value Investment and Policy Survey, stable value funds had positive returns and attracted significant new flows. This beat the returns of the Donoghue Money Market Fund Index by a whopping 1.25%. Unlike most other assets in defined contribution plans, stable value did not experience a decline in terms of assets.

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% synthetic GICs, 3% separate accounts, and 2% other. For 2000, the survey found an asset mix of 3% cash, 45% GICs, 46% synthetic GICs, 4% separate accounts and 2% other.