Looking for stable value? Several choices available

Article Abstract:

Guaranteed investment contracts (GICs) have been a favored stable-value investment option by plan sponsors for salary reduction savings plans. The financial stability of GICs suffered following the financial failures of Executive Life and Mutual Benefit in 1991 and the seizure of Confederation Life Insurance's operations by both US and Canadian regulators. However, GICs have re-emerged in various types as interest rates increased and were assured in the contract with a principal return from an insurer.

Pension Funds & Benefit Plans, Pension Funds, Investment Companies, Salary reduction savings plans, 401K plans

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Beware the "wrap factor" in synthetic GICs

Article Abstract:

Synthetic guaranteed investment contracts (GIC) may offer the benefits of traditional GICs without credit risk to issuers. They offer more investment flexibility than traditional GICs. However, plan fiduciaries should be aware of risks that introduce cash flow variability in these wrapped portfolios in the short to medium term, as they can create volatile internal rates of return. Plan participants view a crediting rate volatility as an unwanted risk.

Investment Funds & Trusts, HOLDING AND OTHER INVESTMENT OFFICES, Wrap accounts

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Seven steps to selecting winning mutual funds

Article Abstract:

Seven tips for selecting successful mutual funds are offered. These are reading the prospectus carefully, focusing on long-term results, comparing like products, evaluating performance correctly, understanding the total fee structure, focusing on net performance, and identifying the people who are actually managing the fund.

Other Financial Vehicles, Management investment, open-end, Mutual Funds (Open End), Investment offices, not elsewhere classified, Mutual Funds (Closed End), Open end mutual funds, Closed end mutual funds

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