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Stable Value establishing growth in the 403(b) market

The 2016 annual survey published by the Stable Value Investment Association reported increased assets from $779.4 billion year end 2015 to $821 billion year end 2016. If you look back even five years there was a significant increase in assets under management from year end 2010 reporting $539.8 billion to $645.6 billion year end 2011. This increase was across all three management segments: individual, pooled funds, and life insurance company accounts reflecting a total change [...]

July 26th, 2017|

The Stable Value Market Environment: Second Quarter 2017

Despite spurts of volatility, global financial markets remained resilient in the wake of several geopolitical events during the quarter including the US cruise missile attack on Syria, North Korea missile tests, and the Trump/Russia investigation. In addition, uncertainty regarding the Trump administration’s ability to deliver on its pro-growth agenda continued to grow after the Senate was unable to pass its healthcare bill. Despite all this noise, investor optimism regarding the global economic outlook and corporate [...]

July 26th, 2017|

2016: GIC Issuers: Another Stable Year, Headwinds Persist

Throughout our thirty year history, FCM’s stable value management approach has utilized diversified portfolios of traditional guaranteed investment contracts (GICs) issued by major life insurance companies. We have found several relative value advantages in using GICs over other stable value products, including policyholder status and superior yield premiums relative to comparable high-grade obligations. Traditional GIC contracts are general account obligations and backed by the full financial strength and credit of the issuing life insurance company. [...]

May 10th, 2017|

The Stable Value Market Environment – First Quarter 2017

After a volatile last couple months of 2016, the financial markets were relatively quiet during the first quarter. For the most part, the “Trump trade” continued as investors remained optimistic regarding the prospects for a US economy with less regulation and fiscal stimulus in the form of tax cuts and infrastructure spending. However, investor euphoria appeared to wane late in the quarter in response to growing concerns over the ability of President Trump to deliver [...]

May 10th, 2017|