SVIA Releases Synthetic Investment Contracts Basics

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The Stable Value Investment Association is pleased to announce the release of Synthetic Investment Contracts Basics. Synthetic Investment Contracts Basics explains the synthetic GIC structure, provides an overview of bonds, and answers frequently asked questions about synthetic GICs.

Basics demystifies for plan participants the 40% of stable value invested in synthetic GICs that SVIA members manage. As of December 31, 2012, SVIA members collectively managed over $701 billion in stable value assets across 189,000 defined contribution plans. Stable value assets as of the end of December 2012, represented 14 percent of all defined contribution assets.

SVIA released a companion publication, Guaranteed Insurance Accounts FAQ, which explains insurance company guaranteed accounts earlier this year. Together, the two documents serve as an excellent resource for those who want to learn more about stable value.

The Stable Value Investment Association (SVIA) is dedicated to educating plan sponsors and the public on the importance of saving and investing for retirement and the contribution that stable value funds can make to a financially secure retirement. SVIA serves as the voice for the stable value investment community on issues affecting stable value and retirement investment and retirement income security. SVIA represents all segments of the stable value investment community: plan sponsors, investment managers, bank issuers and insurance issuers.