Memorandum - SEC · 2011-11-21 · Stable value funds are defined by the Financial Accounting Standards Board in "Reporting of Fully Benefit-Responsive Investment Contracts Held by

MEMORANDUM

November 17 2011

To File No S7-32-11

From Gena Lai Office of Commissioner Troy A Paredes

Re Acceptance of Public Submissions Regarding the Study of Stable Value Contracts (Request for Comment)

On November 16 2011 Dawn Jessen and Gena Lai Counsels to Commissioner Troy A Paredes met with the following individuals representing the Stable Value Investment Association (SVIA)

Tony Camp Vice President Stable Value Product ING Co-Chairman SVIA Government Relations Committee

James King Vice President Prudential Life Insurance Incoming-Chairman SVIA Board of Directors

Stephen Kolocotronis Vice President and Associate General Counsel Fidelity Investments Co-Chairman Government Relations Committee

Marc Magnoli Executive Director JPMorgan Chase Bank NA Chairman SVIA Board of Directors

Gina Mitchell President SVIA President Stable Value Investment Association

Brad Bondi Cadwalader Wickersham amp Taft LLP

Tony Mansfield Cadwalader Wickersham amp Taft LLP

Jonathan Flynn Cadwalader Wickersham amp Taft LLP

The participants discussed generally the above referenced Study The enclosed presentation was provided to Counsels

o Stable Value Funds Overview

SVIA 1

Stable Value Investment Association

~ 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

~ Voice for the stable value investment community on issues affecting stable value and retirement security

~ Represents all segments of the stable value investment community plan sponsors investment managers bank issuers and insurance Issuers

~ Members collectively manage almost $540 billion in stable value assets

SVIA 2

Why Stable Value Is a Key Part of Asset Allocation ~ Stable value is a fundamental component of defined contribution plans because it offers

raquo Principal protection raquo Steady predictable returns consistent with a conservative principal protection vehicle raquo Benefit-responsive liquidity

~ Stable value is a low-risk cost-effective investment option used by millions of participants to achieve their desired risk tolerance in asset allocation

~ Participants who invest in stable value funds are raquo Retirees or individuals nearing retirement who will begin to access retirement funds now or in

the near future raquo Conservative investors who seek a core portfolio that provides an attractive return coupled

with the opportunity for low volatility and preservation of capital raquo Moderate or aggressive investors seeking diversification to enhance their overall portfolio riskshy

adjusted returns raquo Individuals seeking an alternative to money market funds and short-term bond funds raquo Individuals who have been placed in a stable value fund by default because they have not

made an asset allocation decision

Funds to the left have potentially more Funds to the right have potentially less inflation risk and less investment risk inflation risk and more investment risk

SVIA Stable value funds are defined by the Financial Accounting Standards Board in Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined Contribution Health and Welfare and Pension Plans FSP AAG INV-1 and SOP 94-4-1

3

401 (k) Plans that Offer Stable Value Funds

Average Asset Allocation of 401 (k) Accounts for Plans Average Asset Allocation of 401(k) Accounts for Plans with Stable Value Fund Investment Option and

with Stable Value Fund Investment Option and No Employer Stock Company Stock

541 438

~ be oct~ ~ ~ ~ s ~ fr0 laquo~ laquo~ blaquo~ laquo gt0laquo (~~~ ~ ~ ~ ~ ~ ~ ~v 0cfi ltG) ~flj 0 cP ~ be be ~o ~ ~be laquo~be OJ~ov

~lIJ 0~ ~~ fr0 laquo~ laquo~ blaquo~ laquo gt0 (~~v ~ o~ OJ

~o ~ ~ ~ ~ ~ ~ ~ ~ ~v CJ~ ltG) ~flj 0 cP (j ~lI ~ ~~lI ~ 0 ~flj

v ~ o~ OJ ~o ~

_2008 _2006 -2008 _2006

SVIA Source 401 (k) Plan Asset Allocation Account Balances and Loan Activity in 2008 Research Perspective October 2009 Volume 15 Number 2 Investment Company Institute and 401 (k) Plan Asset Allocation Account Balances and Loan Activity in 2006 Research Perspective August 2007 Volume 13 Number 1 Investment Company Institute

4

Participants of All Ages Use Stable Value

374

352

152

91 88 82 83 77 82

68 62 66 55

30

Equity Funds Lifecycle Funds Non-Lifecycle Funds

470

441

Asset Allocation by Age for 2008

38

232

162 152

145

127123 rmiddot

10 3109[middot J 510110 [J 9493_middotf~ 8784

78j

~l 73_71 74

55 52

~

57

Bond Funds Money Market Stable Value Company Stock Other Unknown Funds Funds

20s bull 30s 40s [i 50s bull 60s bull All

SVIA Source 401 (k) Plan Asset Allocation Account Balances and Loan Activity in 2008 Research Perspective October 2009 Volume 15 Number 2 Investment Company Institute

5

Stable Value Provides Capital Preservation and Consistent Steady Returns

Volatility of Returns 123188 thru 093011

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~

-Model Stable Value Account -iMoneyNet Money Market Funds -Barclays Intermediate GovCredit Index

400

300

200

I) ra 100 amp gt ~ 000 II bull IN I nTlIJ ~I I I I - lIl1l1lII 111 1 III II mI U1 T1tHI I o

middot100

middot200

middot300

Sources Stable Value Investment Association iMoneyNet Money Market Funds and Barclays Intermediate GovCredit Index SVIA 6

~I Stable Value Offers Higher Return Potential than Money Market Funds

Growth of $1 123188 thru 093011

$500

449 $450 I

$400

$350

$300 CI)

~ $250 gt

$200 225

$150

$100

$050

$000 (IPo p(I p p ~o

I p p pIigt pI pb ~oo ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ l igt~ gtlt1 )lt0gtlt1 )$ )-0gtlt1 )-0gtlt1 )-0gtlt1 )-0gtlt1 )-0gtlt1 )$ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ )-Ogt~ )-Ogt~

-Model Stable Value Account - iMoneyNet Money Market Funds - Barclays Intermediate GovCredit Index

Sources Stable Value Investment Association iMoneyNet Money Market Funds and 8arclays Intermediate GovCredit Index SVIA 7

) Benefit Responsiveness Distinguishes Stable Value From Other Asset Classes

)gt Benefit-responsiveness means participants transact at book value (principal plus accrued interest)

~ Benefit responsiveness helps the stable value fund achieve the following objectives

raquo Principal preservation with capital appreciation raquo Consistent conservative returns raquo Returns similar to bond funds with the liquidity of money market funds

~ Benefit responsiveness is provided through one or more different types of investment contracts

~ Benefit responsiveness criteria is established by the Financial Accounting Standards Board (FASB) and all five requirements must be met

Stable value funds are defined by the Financial Accounting Standards Board in Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined Contribution Health and Welfare and Pension Plans FSP AAG INV-1 and SOP 94-4-1 SVIA 8

FASB Requirements for Benefit Responsiveness

~ FASB established criteria for benefit responsiveness in FSP AAG INV-a All must be satisfied

1 Investment contract is effected directly between the fund and issuer and prohibits the sale or assignment of the contract or its proceeds to another party without the consent of the issuer

2 The repayment ofprincipal and interest credited to participants in the fund is a financial obligation of the issuer of the investment contract or prospective interest crediting rate adjustments are provided to participants in the fund on a designated pool of investments held by the fund or a contract issuer who is a financially responsible third party and provides assurances that the adjustments to the interest crediting rate do not result in a future interest crediting rate that is less than zero

3 The terms of the investment contract require all permitted participant-initiated transactions with the fund to occur at book value

4 An event (such as bankruptcy) that limits the ability of the fund to transact at book value with the issuer and that also limits the ability of the fund to transact at book value with participants in the fund must not be probable of occurring

5 The fund itself must allow participants reasonable access to their funds

Stable value funds are defined by the Financial Accounting Standards Board in Reporting of Fully Benefit-Responsive Investment Contracts Held by S 11 A Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined Contribution Health and Welfare and Pension Plans V ~ FSP AAG INV-1 and SOP 94-4-1 9

How Benefit Responsiveness Is Achieved

Benefit responsiveness is the ability of plan participants to transact at book value (principal plus accrued interest)

Benefit responsiveness is delivered by a stable value investment contract from a financially sound bank or insurance company that provides redemption at book value (principal plus accumulated interest) regardless of the level of market value

Stable value investment contracts are raquo Guaranteed Interest Contracts andother General Account Contracts raquo Separate Account Contracts raquo Synthetic G I Cs

Stable value funds may hold one contract type or some combination of these investment contracts

Stable value funds are defined by the Financial Accounting Standards Board in Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined Contribution Health and Welfare and Pension Plans FSP AAG INV-1 SVIAand SOP 94-4-1 10

How Benefit Responsiveness Works

Managed portfolio of high-quality fixed income securities

Investment Contracts

Stable Value Fund

bullThe book value investment contract provides preservation ofprincipal and a stable crediting rate

bullThe investment contract smoothes market volatility by amortizing gains and losses over the duration of the portfolio

bullThis smoothing is triggered through the rate reset mechanism and insulates against day-to-day volatility

Value I I Market Value of underlying

portfolio

Rising interest rates

FallingAsset interest

rates

Time o Wrap Value - Book Value - Market Value

SVIA 11

Benefit Responsiveness How Market Value and Book Value Converge

Fund Balance

$$

Market Value

Book Value

Crediting Rate Formula Smoothes the Portfolio Yield and Keeps Market and Book Value Close Together

MV(1+ytm) d= BV(1 + CR) d

The equivalent formula expressed in terms of CR is

CR =[(MVIBVyd x (1+ytm)]-1

1 Year 2 Years 3 Years Duration

SVIA 12

Characteristics of a Stable Value Portfolio

~ High credit quality fixed income securities raquo Portfolios will have an investment grade strategy raquo On average overall credit quality is AA or better duration is 400 years for $540 billion as

of December 31 2010

~ Broadly diversified raquo In general the exposure to any single issuer of investment securities typically

does not exceed five percent of fund assets

~ Balances duration with crediting-rate responsiveness raquo Crediting rates are 343 for $540 billion as of December 31 2010

~ Maintains a source of ready liquidity raquo Portfolios should be structured to provide sufficient liquidity when needed for

plan benefits

~ Each characteristic should be viewed and evaluated as a component of the total overall strategy employed

Source SVIAs Key Investment Management Principles for Stable Value Funds amp The 15th Annual SVIA Stable Value Investment and Policy Survey S V I A 13

-1gt -

-- 33~

Stable Value Funds Continue to be a Valued Investment

$500000

$450000 $423470 $404868

~ 1llO( 11 da~ ~--$400000 --

--$350000

1 l 1 __I

- 1 -- -- --

i

$300000 I i -- ~ -I ) middotmiddotic i0

-- 1 1~ -- j-- --) --~ ---- -- ---~ -- $250000

i I j~ en

t 1 __

L-j- 1__ middot1 i

-- I - --I -- --I --$200000 --lgtI I Ideg1 i1 L i__ ~

~I__~ -- j

$150000 -- --I -- -- -- j r

1 J bull -

( i __ II fL -- -- - --$100000

I i t~ j I

L [ I I i -jj I __rL-J ~ i i__ I -- -- I- -- ---$50000 -

I k j imiddot I$shy

200804 200901 200902 200903 200904 201001 201002 201003 201004 201101 2011 02 201203

F7~~1 Stable Value Assets -Crediting Rate

450

400

350

300 Q)-coc Cl250 c E C 200 Q)

U

150

100

050

000

SVIA Source SVIA Stable Value Quarterly Characteristics Survey through March 2011

14

For more information

Stable Value Investment Association 1025 Connecticut Avenue NW

Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15

o Stable Value Funds Overview

SVIA 1






SVIA 2











3




541 438




v ~ o~ OJ ~o ~

_2008 _2006 -2008 _2006


4


374

352

152

91 88 82 83 77 82

68 62 66 55

30


470

441


38

232

162 152

145

127123 rmiddot


78j

~l 73_71 74

55 52

~

57




5



~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~


400

300

200


middot100

middot200

middot300



Growth of $1 123188 thru 093011

$500

449 $450 I

$400

$350

$300 CI)

~ $250 gt

$200 225

$150

$100

$050





























Stable Value Fund





portfolio



rates


SVIA 11


Fund Balance

$$

Market Value

Book Value






SVIA 12



of December 31 2010





plan benefits



-1gt -

-- 33~


$500000

$450000 $423470 $404868

~ 1llO( 11 da~ ~--$400000 --

--$350000

1 l 1 __I

- 1 -- -- --

i


-- 1 1~ -- j-- --) --~ ---- -- ---~ -- $250000

i I j~ en

t 1 __

L-j- 1__ middot1 i


~I__~ -- j

$150000 -- --I -- -- -- j r

1 J bull -

( i __ II fL -- -- - --$100000

I i t~ j I

L [ I I i -jj I __rL-J ~ i i__ I -- -- I- -- ---$50000 -

I k j imiddot I$shy

200804 200901 200902 200903 200904 201001 201002 201003 201004 201101 2011 02 201203


450

400

350

300 Q)-coc Cl250 c E C 200 Q)

U

150

100

050

000


14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15






SVIA 2











3




541 438




v ~ o~ OJ ~o ~

_2008 _2006 -2008 _2006


4


374

352

152

91 88 82 83 77 82

68 62 66 55

30


470

441


38

232

162 152

145

127123 rmiddot


78j

~l 73_71 74

55 52

~

57




5



~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~


400

300

200


middot100

middot200

middot300



Growth of $1 123188 thru 093011

$500

449 $450 I

$400

$350

$300 CI)

~ $250 gt

$200 225

$150

$100

$050





























Stable Value Fund





portfolio



rates


SVIA 11


Fund Balance

$$

Market Value

Book Value






SVIA 12



of December 31 2010





plan benefits



-1gt -

-- 33~


$500000

$450000 $423470 $404868

~ 1llO( 11 da~ ~--$400000 --

--$350000

1 l 1 __I

- 1 -- -- --

i


-- 1 1~ -- j-- --) --~ ---- -- ---~ -- $250000

i I j~ en

t 1 __

L-j- 1__ middot1 i


~I__~ -- j

$150000 -- --I -- -- -- j r

1 J bull -

( i __ II fL -- -- - --$100000

I i t~ j I

L [ I I i -jj I __rL-J ~ i i__ I -- -- I- -- ---$50000 -

I k j imiddot I$shy

200804 200901 200902 200903 200904 201001 201002 201003 201004 201101 2011 02 201203


450

400

350

300 Q)-coc Cl250 c E C 200 Q)

U

150

100

050

000


14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15











3




541 438




v ~ o~ OJ ~o ~

_2008 _2006 -2008 _2006


4


374

352

152

91 88 82 83 77 82

68 62 66 55

30


470

441


38

232

162 152

145

127123 rmiddot


78j

~l 73_71 74

55 52

~

57




5



~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~


400

300

200


middot100

middot200

middot300



Growth of $1 123188 thru 093011

$500

449 $450 I

$400

$350

$300 CI)

~ $250 gt

$200 225

$150

$100

$050





























Stable Value Fund





portfolio



rates


SVIA 11


Fund Balance

$$

Market Value

Book Value






SVIA 12



of December 31 2010





plan benefits



-1gt -

-- 33~


$500000

$450000 $423470 $404868

~ 1llO( 11 da~ ~--$400000 --

--$350000

1 l 1 __I

- 1 -- -- --

i


-- 1 1~ -- j-- --) --~ ---- -- ---~ -- $250000

i I j~ en

t 1 __

L-j- 1__ middot1 i


~I__~ -- j

$150000 -- --I -- -- -- j r

1 J bull -

( i __ II fL -- -- - --$100000

I i t~ j I

L [ I I i -jj I __rL-J ~ i i__ I -- -- I- -- ---$50000 -

I k j imiddot I$shy

200804 200901 200902 200903 200904 201001 201002 201003 201004 201101 2011 02 201203


450

400

350

300 Q)-coc Cl250 c E C 200 Q)

U

150

100

050

000


14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15




541 438




v ~ o~ OJ ~o ~

_2008 _2006 -2008 _2006


4


374

352

152

91 88 82 83 77 82

68 62 66 55

30


470

441


38

232

162 152

145

127123 rmiddot


78j

~l 73_71 74

55 52

~

57




5



~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~


400

300

200


middot100

middot200

middot300



Growth of $1 123188 thru 093011

$500

449 $450 I

$400

$350

$300 CI)

~ $250 gt

$200 225

$150

$100

$050





























Stable Value Fund





portfolio



rates


SVIA 11


Fund Balance

$$

Market Value

Book Value






SVIA 12



of December 31 2010





plan benefits



-1gt -

-- 33~


$500000

$450000 $423470 $404868

~ 1llO( 11 da~ ~--$400000 --

--$350000

1 l 1 __I

- 1 -- -- --

i


-- 1 1~ -- j-- --) --~ ---- -- ---~ -- $250000

i I j~ en

t 1 __

L-j- 1__ middot1 i


~I__~ -- j

$150000 -- --I -- -- -- j r

1 J bull -

( i __ II fL -- -- - --$100000

I i t~ j I

L [ I I i -jj I __rL-J ~ i i__ I -- -- I- -- ---$50000 -

I k j imiddot I$shy

200804 200901 200902 200903 200904 201001 201002 201003 201004 201101 2011 02 201203


450

400

350

300 Q)-coc Cl250 c E C 200 Q)

U

150

100

050

000


14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15


374

352

152

91 88 82 83 77 82

68 62 66 55

30


470

441


38

232

162 152

145

127123 rmiddot


78j

~l 73_71 74

55 52

~

57




5



~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~


400

300

200


middot100

middot200

middot300



Growth of $1 123188 thru 093011

$500

449 $450 I

$400

$350

$300 CI)

~ $250 gt

$200 225

$150

$100

$050





























Stable Value Fund





portfolio



rates


SVIA 11


Fund Balance

$$

Market Value

Book Value






SVIA 12



of December 31 2010





plan benefits



-1gt -

-- 33~


$500000

$450000 $423470 $404868

~ 1llO( 11 da~ ~--$400000 --

--$350000

1 l 1 __I

- 1 -- -- --

i


-- 1 1~ -- j-- --) --~ ---- -- ---~ -- $250000

i I j~ en

t 1 __

L-j- 1__ middot1 i


~I__~ -- j

$150000 -- --I -- -- -- j r

1 J bull -

( i __ II fL -- -- - --$100000

I i t~ j I

L [ I I i -jj I __rL-J ~ i i__ I -- -- I- -- ---$50000 -

I k j imiddot I$shy

200804 200901 200902 200903 200904 201001 201002 201003 201004 201101 2011 02 201203


450

400

350

300 Q)-coc Cl250 c E C 200 Q)

U

150

100

050

000


14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15



~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~ )~~


400

300

200


middot100

middot200

middot300



Growth of $1 123188 thru 093011

$500

449 $450 I

$400

$350

$300 CI)

~ $250 gt

$200 225

$150

$100

$050





























Stable Value Fund





portfolio



rates


SVIA 11


Fund Balance

$$

Market Value

Book Value






SVIA 12



of December 31 2010





plan benefits



-1gt -

-- 33~


$500000

$450000 $423470 $404868

~ 1llO( 11 da~ ~--$400000 --

--$350000

1 l 1 __I

- 1 -- -- --

i


-- 1 1~ -- j-- --) --~ ---- -- ---~ -- $250000

i I j~ en

t 1 __

L-j- 1__ middot1 i


~I__~ -- j

$150000 -- --I -- -- -- j r

1 J bull -

( i __ II fL -- -- - --$100000

I i t~ j I

L [ I I i -jj I __rL-J ~ i i__ I -- -- I- -- ---$50000 -

I k j imiddot I$shy

200804 200901 200902 200903 200904 201001 201002 201003 201004 201101 2011 02 201203


450

400

350

300 Q)-coc Cl250 c E C 200 Q)

U

150

100

050

000


14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15


Growth of $1 123188 thru 093011

$500

449 $450 I

$400

$350

$300 CI)

~ $250 gt

$200 225

$150

$100

$050





























Stable Value Fund





portfolio



rates


SVIA 11


Fund Balance

$$

Market Value

Book Value






SVIA 12



of December 31 2010





plan benefits



-1gt -

-- 33~


$500000

$450000 $423470 $404868

~ 1llO( 11 da~ ~--$400000 --

--$350000

1 l 1 __I

- 1 -- -- --

i


-- 1 1~ -- j-- --) --~ ---- -- ---~ -- $250000

i I j~ en

t 1 __

L-j- 1__ middot1 i


~I__~ -- j

$150000 -- --I -- -- -- j r

1 J bull -

( i __ II fL -- -- - --$100000

I i t~ j I

L [ I I i -jj I __rL-J ~ i i__ I -- -- I- -- ---$50000 -

I k j imiddot I$shy

200804 200901 200902 200903 200904 201001 201002 201003 201004 201101 2011 02 201203


450

400

350

300 Q)-coc Cl250 c E C 200 Q)

U

150

100

050

000


14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15

























Stable Value Fund





portfolio



rates


SVIA 11


Fund Balance

$$

Market Value

Book Value






SVIA 12



of December 31 2010





plan benefits



-1gt -

-- 33~


$500000

$450000 $423470 $404868

~ 1llO( 11 da~ ~--$400000 --

--$350000

1 l 1 __I

- 1 -- -- --

i


-- 1 1~ -- j-- --) --~ ---- -- ---~ -- $250000

i I j~ en

t 1 __

L-j- 1__ middot1 i


~I__~ -- j

$150000 -- --I -- -- -- j r

1 J bull -

( i __ II fL -- -- - --$100000

I i t~ j I

L [ I I i -jj I __rL-J ~ i i__ I -- -- I- -- ---$50000 -

I k j imiddot I$shy

200804 200901 200902 200903 200904 201001 201002 201003 201004 201101 2011 02 201203


450

400

350

300 Q)-coc Cl250 c E C 200 Q)

U

150

100

050

000


14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15


















Stable Value Fund





portfolio



rates


SVIA 11


Fund Balance

$$

Market Value

Book Value






SVIA 12



of December 31 2010





plan benefits



-1gt -

-- 33~


$500000

$450000 $423470 $404868

~ 1llO( 11 da~ ~--$400000 --

--$350000

1 l 1 __I

- 1 -- -- --

i


-- 1 1~ -- j-- --) --~ ---- -- ---~ -- $250000

i I j~ en

t 1 __

L-j- 1__ middot1 i


~I__~ -- j

$150000 -- --I -- -- -- j r

1 J bull -

( i __ II fL -- -- - --$100000

I i t~ j I

L [ I I i -jj I __rL-J ~ i i__ I -- -- I- -- ---$50000 -

I k j imiddot I$shy

200804 200901 200902 200903 200904 201001 201002 201003 201004 201101 2011 02 201203


450

400

350

300 Q)-coc Cl250 c E C 200 Q)

U

150

100

050

000


14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15










Stable Value Fund





portfolio



rates


SVIA 11


Fund Balance

$$

Market Value

Book Value






SVIA 12



of December 31 2010





plan benefits



-1gt -

-- 33~


$500000

$450000 $423470 $404868

~ 1llO( 11 da~ ~--$400000 --

--$350000

1 l 1 __I

- 1 -- -- --

i


-- 1 1~ -- j-- --) --~ ---- -- ---~ -- $250000

i I j~ en

t 1 __

L-j- 1__ middot1 i


~I__~ -- j

$150000 -- --I -- -- -- j r

1 J bull -

( i __ II fL -- -- - --$100000

I i t~ j I

L [ I I i -jj I __rL-J ~ i i__ I -- -- I- -- ---$50000 -

I k j imiddot I$shy

200804 200901 200902 200903 200904 201001 201002 201003 201004 201101 2011 02 201203


450

400

350

300 Q)-coc Cl250 c E C 200 Q)

U

150

100

050

000


14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15




Stable Value Fund





portfolio



rates


SVIA 11


Fund Balance

$$

Market Value

Book Value






SVIA 12



of December 31 2010





plan benefits



-1gt -

-- 33~


$500000

$450000 $423470 $404868

~ 1llO( 11 da~ ~--$400000 --

--$350000

1 l 1 __I

- 1 -- -- --

i


-- 1 1~ -- j-- --) --~ ---- -- ---~ -- $250000

i I j~ en

t 1 __

L-j- 1__ middot1 i


~I__~ -- j

$150000 -- --I -- -- -- j r

1 J bull -

( i __ II fL -- -- - --$100000

I i t~ j I

L [ I I i -jj I __rL-J ~ i i__ I -- -- I- -- ---$50000 -

I k j imiddot I$shy

200804 200901 200902 200903 200904 201001 201002 201003 201004 201101 2011 02 201203


450

400

350

300 Q)-coc Cl250 c E C 200 Q)

U

150

100

050

000


14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15


Fund Balance

$$

Market Value

Book Value






SVIA 12



of December 31 2010





plan benefits



-1gt -

-- 33~


$500000

$450000 $423470 $404868

~ 1llO( 11 da~ ~--$400000 --

--$350000

1 l 1 __I

- 1 -- -- --

i


-- 1 1~ -- j-- --) --~ ---- -- ---~ -- $250000

i I j~ en

t 1 __

L-j- 1__ middot1 i


~I__~ -- j

$150000 -- --I -- -- -- j r

1 J bull -

( i __ II fL -- -- - --$100000

I i t~ j I

L [ I I i -jj I __rL-J ~ i i__ I -- -- I- -- ---$50000 -

I k j imiddot I$shy

200804 200901 200902 200903 200904 201001 201002 201003 201004 201101 2011 02 201203


450

400

350

300 Q)-coc Cl250 c E C 200 Q)

U

150

100

050

000


14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15



of December 31 2010





plan benefits



-1gt -

-- 33~


$500000

$450000 $423470 $404868

~ 1llO( 11 da~ ~--$400000 --

--$350000

1 l 1 __I

- 1 -- -- --

i


-- 1 1~ -- j-- --) --~ ---- -- ---~ -- $250000

i I j~ en

t 1 __

L-j- 1__ middot1 i


~I__~ -- j

$150000 -- --I -- -- -- j r

1 J bull -

( i __ II fL -- -- - --$100000

I i t~ j I

L [ I I i -jj I __rL-J ~ i i__ I -- -- I- -- ---$50000 -

I k j imiddot I$shy

200804 200901 200902 200903 200904 201001 201002 201003 201004 201101 2011 02 201203


450

400

350

300 Q)-coc Cl250 c E C 200 Q)

U

150

100

050

000


14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15

-1gt -

-- 33~


$500000

$450000 $423470 $404868

~ 1llO( 11 da~ ~--$400000 --

--$350000

1 l 1 __I

- 1 -- -- --

i


-- 1 1~ -- j-- --) --~ ---- -- ---~ -- $250000

i I j~ en

t 1 __

L-j- 1__ middot1 i


~I__~ -- j

$150000 -- --I -- -- -- j r

1 J bull -

( i __ II fL -- -- - --$100000

I i t~ j I

L [ I I i -jj I __rL-J ~ i i__ I -- -- I- -- ---$50000 -

I k j imiddot I$shy

200804 200901 200902 200903 200904 201001 201002 201003 201004 201101 2011 02 201203


450

400

350

300 Q)-coc Cl250 c E C 200 Q)

U

150

100

050

000


14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15

Documents

Memorandum - SEC · 2011-11-21 · Stable value funds are defined by the Financial Accounting Standards Board in "Reporting of Fully Benefit-Responsive Investment Contracts Held by