Stable Value
- Prior to the Executive Life Insurance Company (ELIC) default there was no such thing as a stable value fund...
-- Murray L. Becker
1999 - SOA -Insurance Company Failures of the Early 1990s-Have We Learned Anything?, Society of Actuaries - 25p
- stablevalue.org/wp-content/uploads/Stable_Times_Volume_3_Issue_2.pdf
- 2011 - SEC-CFTC Stable Value Contract Study - Study of Stable Value Contracts (Release No. 34-65153; File No. S7-32-11)
- Acceptance of Public Submissions Regarding the Study of Stable Value Contracts - A Notice by the Commodity Futures Trading Commission and the Securities and Exchange Commission on 08/25/2011 - federalregister.gov/documents/2011/08/25/2011-21645/acceptance-of-public-submissions-regarding-the-study-of-stable-value-contracts
- cftc.gov/LawRegulation/DoddFrankAct/ReportsandStudies/StudyStableValueContracts/index.htm
- 2011 0926 - ACLI Submission on SEC-CFTC Stable Value Contract Study - 7p
- 2015 - LC - JAMES ELLIS and WILLIAM PERRY, Plaintiffs, v. FIDELITY MANAGEMENT TRUST COMPANY
- Case 1:15-cv-14128-MPK
- Document 1 - Complaint - Filed 12/11/15 Page 1 of 32 - 34p
- Faced with a substantial decline in the MIP’s market value, and with resulting pressure from the wrap providers – which were exposed to liability in the event of significant MIP fund withdrawals – Fidelity responded by adopting an unduly conservative investment strategy that was contrary to the purposes of stable value fund investing, agreeing to allow the wrap providers to charge excessive fees, and charging excessive fees for its own account.
- Fidelity did so to protect its own position vis a vis the wrap providers to the detriment of the investors in the MIP. Fidelity also charged excessive fees for its own account.
- Faced with a substantial decline in the MIP’s market value, and with resulting pressure from the wrap providers – which were exposed to liability in the event of significant MIP fund withdrawals – Fidelity responded by adopting an unduly conservative investment strategy that was contrary to the purposes of stable value fund investing, agreeing to allow the wrap providers to charge excessive fees, and charging excessive fees for its own account.