Galliard Capital Management will offer next year the first stable-value fund designed specifically for non-profit organizations' 403(b) plans.
The Guaranteed Pooled Fund was developed by Galliard in conjunction with Diversified Investment Advisors, Purchase, N.Y., and will be structured as an insurance company separate account.
Because 403(b) plans are restricted to investing in insurance company annuity contracts or mutual funds, the Guaranteed Pooled Fund will look like a traditional synthetic pooled fund, but be structured as an annuity. Galliard will manage the assets; AUSA Life Insurance Co. will provide the annuity; and Diversified will give marketing support.
The new fund will consist of synthetic contracts using multiple outside book-value wrapper providers.
The underlying actively managed fixed-income portfolio will consist of high-quality bonds, and the portfolio will have an average duration of 2 to 2 1/2 years.