Chicago, IL – January 27, 2013 – Blue Prairie Group (“BPG”), a Chicago-based institutional retirement and investment consulting firm, released its most recent findings from its stable value database.
Every quarter, Blue Prairie Group updates its stable value database based on questionnaire results from 17 leading stable value providers representing over $140 billion of stable value assets. BPG summarizes the findings and releases them in an executive summary format that is then made available on Blue Prairie Group’s website. The information is free and is available about 6 – 8 weeks after the end of each quarter. Please click on the following link to access the Blue Prairie Group website: https://www.blueprairiegroup.com/stable-value/. (Interested parties can also sign up to receive notification each time the data is updated.)
“We believe that stable value is one of the most important asset classes in a retirement plan because of its ability to deliver a safe return with significantly lower volatility,” said Matt Gnabasik, Managing Director of Blue Prairie Group. “The purpose of this quarterly executive summary is to provide plan sponsors, their advisors and the media a source of good, objective information about this important ERISA-specific asset class so that all can gain a sense of how their stable value fund stacks up against the norm, and to stay apprised of broad trends in the marketplace.”
Summary of Key Findings:
- Performance of the underlying portfolios this quarter for the 1-year period ranged from 1.35% to 3.8%, while performance over a 3-year annualized period ranged from 1.30% to 4.18%. Our data shows that, on average, 1-year investment returns have decreased slightly since last quarter.
- Market-to-book ratios generally increased this quarter to an average 1.35% due to a depressed interest rate environment and a weakening and volatile equity market which drove up the price of bonds.
- Stable value funds offered by insurance companies, in either a traditional “guaranteed investment contract” (GIC) or a Separate Account GIC structure, had the highest returns as a result of having higher levels of underlying portfolio credit risk, duration, or a combination of both.
About Blue Prairie Group
Blue Prairie Group is a fee-only investment consulting firm based in Chicago. We provide unbiased and objective financial consulting within three main practice areas: ERISA Retirement, Foundations & Endowments and Wealth Management. We act as fiduciaries to all of our clients’ portfolios and are remunerated solely by our clients. BPG passionately advocates low cost investments, full fee transparency, and offers a broad, team-based service model for both institutions and individuals. Like any good neighbor, we contribute to the communities we live in, and for us this means giving 5% of our pre-tax profit to local charitable organizations.