DOL Proposes Major Changes to ERISA Fiduciary Rules for Providers
The Department of Labor’s (DOL) proposed fiduciary rules change the playing field for service providers that may make recommendations for the sale of their own products and services. If a service provider including a stable value product provider or an investment manager were to acquire fiduciary status in connection with sales of its own products […]
Ron Suskind: U.S. Voters Face “Dynastic Dilemma”
In sports, Americans are familiar with many dynasties. The New York Yankees, winners of 29 pennants from 1921 through 1964. The Montreal Canadiens, who took 20 Stanley Cups between 1930 and 1979. The UCLA Bruins, who won 10 NCAA basketball titles from 1964 to 1975. In presidential politics, it’s been a different story. We are, […]
Stable Value’s Contribution to the American Dream
The core mission of the stable value industry is a simple one: help retirement plan participants grow their nest eggs with minimal risk. In doing that, says James King, chairman of the Stable Value Investment Association, the industry is helping millions of working Americans pursue the American Dream: work hard, save, retire well. That’s not […]
SVIA Steps Up Outreach Efforts
More news is good news. Over the past year, the SVIA has expanded its social media presence while continuing to reach out to the press and regulators to promote the industry and educate them about its products. As part of that effort, says Marijn Smit, president of Investment Solutions at Transamerica Investments & Retirement and […]
SVIA Survey Shows Wrap Capacity Continuing to Grow
The great wrap capacity shortage increasingly looks like a distant memory. Following the financial turmoil of 2008, a number of financial institutions stopped underwriting wrap contracts for stable value funds, limiting the industry’s growth prospects. Over the past several years, though, a number of new issuers have entered the market and some veteran players have […]
Stable Value Regulatory Agenda Inches Forward
The stable value industry will have to wait a bit longer to find out if its products are subject to regulation under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The Dodd-Frank Act charged the Securities and Exchange Commission and the Commodity Futures Trading Commission with determining whether stable value contracts should […]
ERISA Issues: Proposed Rules, Regulatory Initiatives and Litigation
Retirement plan providers can be forgiven if they sometimes feel they have a target on their backs. These days, it could actually be two. “Service providers, including stable value providers, are prime targets for both the Department of Labor and the plaintiffs’ bar,” said Jeremy Blumenfeld, partner and co-chair of the ERISA litigation practice at […]
Cash Flow, Interest Rates and Stable Value Products
The long-anticipated rise in interest rates may finally be at hand. Wall Street—and the stable value community—spent much of the past few years anticipating an uptick in interest rates that never materialized. But last year the Federal Reserve ended the bond-buying program it had been using to keep a lid on long-term rates, and later […]
Stable Value: The Plan Sponsor Perspective
It’s obvious that many defined contribution retirement plan sponsors like stable value funds—about half include them among their plan’s investment options. But some plan sponsors really like stable value funds. Take Keith Watson, director of pension investments for Textron Inc. “Stable value is complicated,” Watson says. “There are operational risks, wrap capacity and fee issues, […]