MEMORANDUM TO: File No. S7-32-11 - SEC

________________________________________________________________________

MEMORANDUM

TO File No S7-32-11

FROM Brian P Murphy Counsel to Commissioner Walter

Office of Commissioner Walter

DATE November 15 2011

RE Meeting with Representatives of the Stable Value Investment Association (ldquoMeeting Participantsrdquo)

On the above date Commissioner Walter and Brian P Murphy met with the Meeting Participants to discuss the above referenced file number The Meeting Participants provided the attached document and following list of attendees

Gina Mitchell SVIA President Tony Camp ING James King Prudential Financial Steve Kolocotronis Fidelity Investments Marc Magnoli JP Morgan Chase Brad Bondi Cadwalader Wickersham amp Taft LLP Tony Mansfield Cadwalader Wickersham amp Taft LLP Jonathan Flynn Cadwalader Wickersham amp Taft LLP

o Stable Value Funds Overview

SVIA 1

middot 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

0111 00 00 00 00~ laquov~ ~oO ~Ov laquov~ laquov~ laquov~ Cjltv~ W laquoV

00 00 o (l-~~ltQ0~ _~~ ~v0 bull ltp 00 00 00 00~v~0CJ~ ~0CJ~ ~ ~I laquov~ ~oO ~ovcP~~ laquov~ laquov~ laquov~ Cj V ~v ~0~ ~0 ltv~ W laquoV

~o COI 00 00 o (l-~~~o ltQ0~ _~~ ~v0~0CJ~ ~0CJ~ ~ ~I cP~~V ~v ~0~ ~0 ~o ~o CO-

-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

470

441

Asset Allocation by Age for 2008

38 374

352

152

91 88 82 83 77 82

68 62 66 55

30

Equity Funds Lifecycle Funds Non-Lifecycle Funds

232

162 152

145

1271123

510110 9493~01

87

73_71 74 84

lt J j

i i

L )

78

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

bull 20s bull 30s 40s Fi 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 1231188 thru 093011

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ )It~ )It~ )It~ )It~ )It~ )It~ )It~ )It~ )It~ )It~ )It~ )It~ )It~ )It~ )It~ )It~ )It~ )It~ )It~ )It~ )It~ )It~

-Model Stable Value Account -iMoneyNet Money Market Funds - 8arclays Intermediate GovlCredit Index

400

300

200

II) sa 100 amp gtshy~ 000 II HIN bull II 111111 I II IU ~IIIJIV 1111 BIIIY IfttIT1tl U ~lNI HI I

middot100

middot200

middot300

Sources Stable Value Investment Association iMoneyNet Money Market Funds and 8arcays Intermediate GovCredit Index SVIA 6

Stable Value Offers Higher Return Potential than Money Market Funds

Growth of $1 123188 thru 093011

$500

449 $450 ~

$400

$350

$300 Q)

~ $250 gt

$200

$150

$100

$050

$000

225

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Fgtb FgtOJ 11) 1 ~( ~( ~( ~(

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


Benefit Responsiveness Distinguishes Stable Value From Other Asset Classes

)0gt 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

( I

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 Ilr A Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined Contribution Health and Welfare and Pension Plans V JJI-I 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 Accou nt 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 5 Ilr JI Investment Companies Subject to the AICPA Investment Company Guide and Defined Contribution Health and Welfare and Pension Plans FSP AAG INV-1 V JJI-t and 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 underying

portfolio

Rising interest rates

FallingAsset interest

rates

Time D Wrap Value - Book Value - Market Value

SVIA 11

Benefit Responsiveness How Market Value and Book Value Converge

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

Balance $$ ~~f

Market Value ~~pp

p

~~v

~ rlt

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

~ The equivalent formula expressed in terms of CR is Book Value

CR =[(MVIBVYld 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 ) Portfolios will have an investment grade strategy On average overall credit quality is AA or better duration is 400 years for $540 billion as

of December 312010

~ Broadly diversified ) 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 Crediting rates are 343 for $540 billion as of December 31 2010

~ Maintains a source of ready liquidity ) 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 SV I A 13

Stable Value Funds Continue to be a Valued Investment

$500000

i 000 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011 Q2 2012Q3

050

$443612 $4a4He---- -----J

~ $423470 r~--- ltJ

P11 ff41

a52 13 r l---~~__II------___---~~_~~i i 33p 34 B5 a1P ~ ~-- ~-- bull 1

346844

--

--

--

--

--

middotmiddot1 ~-- --j

$4~525g

j

1 j ~ __r

J--fmiddot r

i

- -

J

1 j(

1 middot1

I

1--I

-- gtI

--

--

I --

1--

--

- -I

i

450

$450000 l400

$400000 350

$350000 300 Q)

ttlc$300000 c Ol250 c0

E $250000 0 ~ en Q)200

U$200000

150 $150000

100$100000

$50000

$shy

0 Stable Value Assets -Crediting Rate

5 VIA 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




-2008 -2006 -2008 _2006


4


470

441


38 374

352

152

91 88 82 83 77 82

68 62 66 55

30


232

162 152

145

1271123

510110 9493~01

87

73_71 74 84

lt J j

i i

L )

78




5





400

300

200


middot100

middot200

middot300



Growth of $1 123188 thru 093011

$500

449 $450 ~

$400

$350

$300 Q)

~ $250 gt

$200

$150

$100

$050

$000

225

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Fgtb FgtOJ 11) 1 ~( ~( ~( ~(










( I



















Stable Value Fund





portfolio



rates


SVIA 11



Balance $$ ~~f

Market Value ~~pp

p

~~v

~ rlt





SVIA 12



of December 312010





plan benefits




$500000

i 000 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011 Q2 2012Q3

050

$443612 $4a4He---- -----J

~ $423470 r~--- ltJ

P11 ff41


346844

--

--

--

--

--


$4~525g

j

1 j ~ __r

J--fmiddot r

i

- -

J

1 j(

1 middot1

I

1--I

-- gtI

--

--

I --

1--

--

- -I

i

450

$450000 l400

$400000 350

$350000 300 Q)

ttlc$300000 c Ol250 c0

E $250000 0 ~ en Q)200

U$200000

150 $150000

100$100000

$50000

$shy



14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15






SVIA 2











3




541 438




-2008 -2006 -2008 _2006


4


470

441


38 374

352

152

91 88 82 83 77 82

68 62 66 55

30


232

162 152

145

1271123

510110 9493~01

87

73_71 74 84

lt J j

i i

L )

78




5





400

300

200


middot100

middot200

middot300



Growth of $1 123188 thru 093011

$500

449 $450 ~

$400

$350

$300 Q)

~ $250 gt

$200

$150

$100

$050

$000

225

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Fgtb FgtOJ 11) 1 ~( ~( ~( ~(










( I



















Stable Value Fund





portfolio



rates


SVIA 11



Balance $$ ~~f

Market Value ~~pp

p

~~v

~ rlt





SVIA 12



of December 312010





plan benefits




$500000

i 000 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011 Q2 2012Q3

050

$443612 $4a4He---- -----J

~ $423470 r~--- ltJ

P11 ff41


346844

--

--

--

--

--


$4~525g

j

1 j ~ __r

J--fmiddot r

i

- -

J

1 j(

1 middot1

I

1--I

-- gtI

--

--

I --

1--

--

- -I

i

450

$450000 l400

$400000 350

$350000 300 Q)

ttlc$300000 c Ol250 c0

E $250000 0 ~ en Q)200

U$200000

150 $150000

100$100000

$50000

$shy



14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15











3




541 438




-2008 -2006 -2008 _2006


4


470

441


38 374

352

152

91 88 82 83 77 82

68 62 66 55

30


232

162 152

145

1271123

510110 9493~01

87

73_71 74 84

lt J j

i i

L )

78




5





400

300

200


middot100

middot200

middot300



Growth of $1 123188 thru 093011

$500

449 $450 ~

$400

$350

$300 Q)

~ $250 gt

$200

$150

$100

$050

$000

225

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Fgtb FgtOJ 11) 1 ~( ~( ~( ~(










( I



















Stable Value Fund





portfolio



rates


SVIA 11



Balance $$ ~~f

Market Value ~~pp

p

~~v

~ rlt





SVIA 12



of December 312010





plan benefits




$500000

i 000 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011 Q2 2012Q3

050

$443612 $4a4He---- -----J

~ $423470 r~--- ltJ

P11 ff41


346844

--

--

--

--

--


$4~525g

j

1 j ~ __r

J--fmiddot r

i

- -

J

1 j(

1 middot1

I

1--I

-- gtI

--

--

I --

1--

--

- -I

i

450

$450000 l400

$400000 350

$350000 300 Q)

ttlc$300000 c Ol250 c0

E $250000 0 ~ en Q)200

U$200000

150 $150000

100$100000

$50000

$shy



14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15




541 438




-2008 -2006 -2008 _2006


4


470

441


38 374

352

152

91 88 82 83 77 82

68 62 66 55

30


232

162 152

145

1271123

510110 9493~01

87

73_71 74 84

lt J j

i i

L )

78




5





400

300

200


middot100

middot200

middot300



Growth of $1 123188 thru 093011

$500

449 $450 ~

$400

$350

$300 Q)

~ $250 gt

$200

$150

$100

$050

$000

225

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Fgtb FgtOJ 11) 1 ~( ~( ~( ~(










( I



















Stable Value Fund





portfolio



rates


SVIA 11



Balance $$ ~~f

Market Value ~~pp

p

~~v

~ rlt





SVIA 12



of December 312010





plan benefits




$500000

i 000 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011 Q2 2012Q3

050

$443612 $4a4He---- -----J

~ $423470 r~--- ltJ

P11 ff41


346844

--

--

--

--

--


$4~525g

j

1 j ~ __r

J--fmiddot r

i

- -

J

1 j(

1 middot1

I

1--I

-- gtI

--

--

I --

1--

--

- -I

i

450

$450000 l400

$400000 350

$350000 300 Q)

ttlc$300000 c Ol250 c0

E $250000 0 ~ en Q)200

U$200000

150 $150000

100$100000

$50000

$shy



14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15


470

441


38 374

352

152

91 88 82 83 77 82

68 62 66 55

30


232

162 152

145

1271123

510110 9493~01

87

73_71 74 84

lt J j

i i

L )

78




5





400

300

200


middot100

middot200

middot300



Growth of $1 123188 thru 093011

$500

449 $450 ~

$400

$350

$300 Q)

~ $250 gt

$200

$150

$100

$050

$000

225

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Fgtb FgtOJ 11) 1 ~( ~( ~( ~(










( I



















Stable Value Fund





portfolio



rates


SVIA 11



Balance $$ ~~f

Market Value ~~pp

p

~~v

~ rlt





SVIA 12



of December 312010





plan benefits




$500000

i 000 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011 Q2 2012Q3

050

$443612 $4a4He---- -----J

~ $423470 r~--- ltJ

P11 ff41


346844

--

--

--

--

--


$4~525g

j

1 j ~ __r

J--fmiddot r

i

- -

J

1 j(

1 middot1

I

1--I

-- gtI

--

--

I --

1--

--

- -I

i

450

$450000 l400

$400000 350

$350000 300 Q)

ttlc$300000 c Ol250 c0

E $250000 0 ~ en Q)200

U$200000

150 $150000

100$100000

$50000

$shy



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 ~

$400

$350

$300 Q)

~ $250 gt

$200

$150

$100

$050

$000

225

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Fgtb FgtOJ 11) 1 ~( ~( ~( ~(










( I



















Stable Value Fund





portfolio



rates


SVIA 11



Balance $$ ~~f

Market Value ~~pp

p

~~v

~ rlt





SVIA 12



of December 312010





plan benefits




$500000

i 000 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011 Q2 2012Q3

050

$443612 $4a4He---- -----J

~ $423470 r~--- ltJ

P11 ff41


346844

--

--

--

--

--


$4~525g

j

1 j ~ __r

J--fmiddot r

i

- -

J

1 j(

1 middot1

I

1--I

-- gtI

--

--

I --

1--

--

- -I

i

450

$450000 l400

$400000 350

$350000 300 Q)

ttlc$300000 c Ol250 c0

E $250000 0 ~ en Q)200

U$200000

150 $150000

100$100000

$50000

$shy



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 ~

$400

$350

$300 Q)

~ $250 gt

$200

$150

$100

$050

$000

225

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Fgtb FgtOJ 11) 1 ~( ~( ~( ~(










( I



















Stable Value Fund





portfolio



rates


SVIA 11



Balance $$ ~~f

Market Value ~~pp

p

~~v

~ rlt





SVIA 12



of December 312010





plan benefits




$500000

i 000 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011 Q2 2012Q3

050

$443612 $4a4He---- -----J

~ $423470 r~--- ltJ

P11 ff41


346844

--

--

--

--

--


$4~525g

j

1 j ~ __r

J--fmiddot r

i

- -

J

1 j(

1 middot1

I

1--I

-- gtI

--

--

I --

1--

--

- -I

i

450

$450000 l400

$400000 350

$350000 300 Q)

ttlc$300000 c Ol250 c0

E $250000 0 ~ en Q)200

U$200000

150 $150000

100$100000

$50000

$shy



14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15








( I



















Stable Value Fund





portfolio



rates


SVIA 11



Balance $$ ~~f

Market Value ~~pp

p

~~v

~ rlt





SVIA 12



of December 312010





plan benefits




$500000

i 000 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011 Q2 2012Q3

050

$443612 $4a4He---- -----J

~ $423470 r~--- ltJ

P11 ff41


346844

--

--

--

--

--


$4~525g

j

1 j ~ __r

J--fmiddot r

i

- -

J

1 j(

1 middot1

I

1--I

-- gtI

--

--

I --

1--

--

- -I

i

450

$450000 l400

$400000 350

$350000 300 Q)

ttlc$300000 c Ol250 c0

E $250000 0 ~ en Q)200

U$200000

150 $150000

100$100000

$50000

$shy



14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15

( I



















Stable Value Fund





portfolio



rates


SVIA 11



Balance $$ ~~f

Market Value ~~pp

p

~~v

~ rlt





SVIA 12



of December 312010





plan benefits




$500000

i 000 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011 Q2 2012Q3

050

$443612 $4a4He---- -----J

~ $423470 r~--- ltJ

P11 ff41


346844

--

--

--

--

--


$4~525g

j

1 j ~ __r

J--fmiddot r

i

- -

J

1 j(

1 middot1

I

1--I

-- gtI

--

--

I --

1--

--

- -I

i

450

$450000 l400

$400000 350

$350000 300 Q)

ttlc$300000 c Ol250 c0

E $250000 0 ~ en Q)200

U$200000

150 $150000

100$100000

$50000

$shy



14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15











Stable Value Fund





portfolio



rates


SVIA 11



Balance $$ ~~f

Market Value ~~pp

p

~~v

~ rlt





SVIA 12



of December 312010





plan benefits




$500000

i 000 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011 Q2 2012Q3

050

$443612 $4a4He---- -----J

~ $423470 r~--- ltJ

P11 ff41


346844

--

--

--

--

--


$4~525g

j

1 j ~ __r

J--fmiddot r

i

- -

J

1 j(

1 middot1

I

1--I

-- gtI

--

--

I --

1--

--

- -I

i

450

$450000 l400

$400000 350

$350000 300 Q)

ttlc$300000 c Ol250 c0

E $250000 0 ~ en Q)200

U$200000

150 $150000

100$100000

$50000

$shy



14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15




Stable Value Fund





portfolio



rates


SVIA 11



Balance $$ ~~f

Market Value ~~pp

p

~~v

~ rlt





SVIA 12



of December 312010





plan benefits




$500000

i 000 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011 Q2 2012Q3

050

$443612 $4a4He---- -----J

~ $423470 r~--- ltJ

P11 ff41


346844

--

--

--

--

--


$4~525g

j

1 j ~ __r

J--fmiddot r

i

- -

J

1 j(

1 middot1

I

1--I

-- gtI

--

--

I --

1--

--

- -I

i

450

$450000 l400

$400000 350

$350000 300 Q)

ttlc$300000 c Ol250 c0

E $250000 0 ~ en Q)200

U$200000

150 $150000

100$100000

$50000

$shy



14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15



Balance $$ ~~f

Market Value ~~pp

p

~~v

~ rlt





SVIA 12



of December 312010





plan benefits




$500000

i 000 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011 Q2 2012Q3

050

$443612 $4a4He---- -----J

~ $423470 r~--- ltJ

P11 ff41


346844

--

--

--

--

--


$4~525g

j

1 j ~ __r

J--fmiddot r

i

- -

J

1 j(

1 middot1

I

1--I

-- gtI

--

--

I --

1--

--

- -I

i

450

$450000 l400

$400000 350

$350000 300 Q)

ttlc$300000 c Ol250 c0

E $250000 0 ~ en Q)200

U$200000

150 $150000

100$100000

$50000

$shy



14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15



of December 312010





plan benefits




$500000

i 000 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011 Q2 2012Q3

050

$443612 $4a4He---- -----J

~ $423470 r~--- ltJ

P11 ff41


346844

--

--

--

--

--


$4~525g

j

1 j ~ __r

J--fmiddot r

i

- -

J

1 j(

1 middot1

I

1--I

-- gtI

--

--

I --

1--

--

- -I

i

450

$450000 l400

$400000 350

$350000 300 Q)

ttlc$300000 c Ol250 c0

E $250000 0 ~ en Q)200

U$200000

150 $150000

100$100000

$50000

$shy



14



Suite 1000

Washington DC 20036

Phone 202-580-7620

Fax 202-580-7621

wwwstablevalueorg

SVIA 15


$500000

i 000 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011 Q2 2012Q3

050

$443612 $4a4He---- -----J

~ $423470 r~--- ltJ

P11 ff41


346844

--

--

--

--

--


$4~525g

j

1 j ~ __r

J--fmiddot r

i

- -

J

1 j(

1 middot1

I

1--I

-- gtI

--

--

I --

1--

--

- -I

i

450

$450000 l400

$400000 350

$350000 300 Q)

ttlc$300000 c Ol250 c0

E $250000 0 ~ en Q)200

U$200000

150 $150000

100$100000

$50000

$shy



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 TO: File No. S7-32-11 - SEC