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NEWS 2016 - Karl Asset TV Master Class
September, 2016 — Stable Value
Karl Tourville, Founding Managing Partner of Galliard Capital Management, along with three other industry experts, Warren Howe of MetLife, Karen Chong-Wulff of ICMA Retirement Corporation, and Jim King of Prudential, participated in an Asset TV Masterclass panel discussing stable value. Watch the video to learn more about the stable value asset class, how stable value performs with respect to rising interest rates, and what plan sponsors can expect from stable value in the current market environment.
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Stable Value 2015- Money Market Fund Reform
December 2015 — Stable Value
Money market fund reform has altered the capital preservation landscape and has led to a renewed interest in stable value from defined contribution plan sponsors who utilize money market mutual funds (or “money market funds”). In this issue of Stable Value Analyst Insights, we provide a summary of the key amendments adopted by the U.S. Securities and Exchange Commission (SEC) to the money market fund rules. We also highlight key differences between money market funds and stable value funds. Lastly, we revisit the compelling case for stable value as a defined contribution capital preservation option. The SEC amendments to the money market fund rules did not directly impact stable value. However, we believe the impact of reform on money market funds further strengthens the case for stable value as an optimal principal preservation choice compared to money market funds.
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Stable Value 2015- Unique Protection in a Rising Rate Environment
July 2015 — Stable Value
At its core, stable value is a fixed income investment, so it stands to reason that plan sponsors, consultants, and stable value investors may be concerned about the prospect of rising interest rates. However, we believe that the unique protections provided by stable value will benefit investors in a rising rate environment.
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Stable Value 2015- Crediting Rates
May 2015 — Stable Value
Crediting rates are a key component of stable value investing. We address how a stable value crediting rate works and the role that the crediting rate plays in determining the overall blended yield of a stable value fund. Our focus is on the crediting rate for synthetic guaranteed investment contracts (GICs also known as security backed investment contracts), although much of what we cover also applies to participating separate account GICs as well. The discussion is less relevant to traditional GICs and non-participating separate account GICs, since these are typically fixed or floating rate fixed maturity contracts and are not addressed.
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Stable Value 2016- Investment Contract
March 2015 — Stable Value
Stable value was created specifically for use in retirement plans and is the only fixed income investment option available that seeks to provide contract value payouts (principal plus accrued income) for participant transactions instead of market value payouts. The contract value protection feature is a key reason why stable value has been and remains among the most popular investment choices of retirement plan participants since the 1970s.
Galliard has extensive experience evaluating investment contract issuers, as well as negotiating and managing a variety of types of stable value investment contracts for its clients. Following is an overview of three commonly used types of stable value investment contracts available in the market today: Traditional GICs, Separate Account GICs and Synthetic GICs (also called Security Backed Investment Contracts).
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