The size of the stable value market stands around $260 billion for both qualified and nonqualified plans, according to a report sponsored by the Stable Value Investment Association and LIMRA International.
Assets are up 5% for the 48 companies participating in the survey. Those companies make up more than 90% of the stable value products sold in 1997. Sales of stable value products were up 22% from 1996. For qualified plans, sales increased 14%, buoyed by the strong growth in synthetic GIC sales, up 49%.
The continued bull market combined with low interest rates previously had dampened investors' enthusiasm for fixed-rate investments, including stable value, but increased stock market volatility may be changing that trend, the report said.