Lincoln Stable Value Account

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Lincoln Stable Value Account

Postby SanityWins » Fri Jun 12, 2009 5:53 pm

Lincoln Stable Value Account is pretty much the only reasonable choice (less than 1.2% ER) in my wife's 403b plan, which actually works fine for us as we are looking to park some cash in a tax advantaged account.

The problem is that there is not much information available on this fund .
Found this regarding how the interest rates are determined...
http://www.pwcs.edu/benefits/Forms_pdfs/Lincoln_Stable_Value%20FAQ_%205-09.pdf
Q12 What index is used?
A12 The credited rate for the Lincoln Stable Value
Account and Lincoln Separate Account Stable Value
Account are based on the three-year average of the
Barclays Capital Intermediate U.S. Government/Credit
Index, based on the yield to worst as shown at the
end of each month in the ‘live Lehman’ Web site. This
is a Web site provided to Lehman customers (now
Barclays) through an ID and password. Please contact
Barclays Capital to obtain access rights to their Web
site. You can find the Intermediate U.S. Govt/Credit
Index via the Fixed Income tab, then Fixed Income
indices U.S. Aggregate, Basic Statistics, and reference
the Credit section of the indices.


Q13 How is the crediting rate calculated
from the index?
A13 For any particular calendar quarter, the credited rate
is based on the 36-month average plus or minus a
factor for that particular contract. The 36-month
average is computed through the end of the month
that ends one month prior to the beginning of the
quarter. A typical crediting rate formula may be
Barclays minus 115, which means that the credited
rate will be the average minus 1.15% on an annualized
basis. If the quarter begins July 1, 2009, the
36-month average will include 36 month-end index
yields through May 31, 2009.

Although there is no apparent ER, the "minus 1.15%" sure sounds like an ER. Now, it is possible that they are just using "Barclays Capital Intermediate U.S. Government/Credit Index" as an index to calculate the interest, and the underlying asset does not has the same risk profile as the index. But then, why would they do that?
As you can see I am pretty clueless about this, and annuities in general, so that probably explains my confusion.

Will appreciate any information and feedback on these.
SanityWins
 
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Joined: Thu Apr 09, 2009 1:39 pm

Postby SanityWins » Mon Jun 15, 2009 6:37 pm

Giving it a bump to see if that'll help get some feedback on this fund.

Thanks
SanityWins
 
Posts: 21
Joined: Thu Apr 09, 2009 1:39 pm

Postby stratton » Mon Jun 15, 2009 7:18 pm

The brochure you link to is very nice explaing stuff about a stable value fund, but there is no information on the actual stable value fund.

I did find this in a document on another web site: http://administration.ucok.edu/document ... ooklet.pdf

About half way through the pdf file. Call the number below and ask for a prospectus and annual report.

Lincoln Stable Value Account
Ticker: N/A
Investment Objective
The Lincoln Stable Value Option is managed to earn a competitive interest rate without risking a loss of principal.
Current Fixed Rate
The portfolio interest rate for the Lincoln Stable Value Account this quarter is 4.07%.
General Information
Inception Date: 05/01/1983
Fund Manager: Delaware Investment Advisors
Fund Phone Number 800-454-6265
Allocation(as of 09/30/2008)
Investment grade publics and U.S.
Government 66.70%
Privates, non-investment grade publics & other 17.53%
Mortgage Loans 12.94%
Cash 2.32%
Stock and Real Estate 0.51%
The Stable Value Account is a fixed annuity issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, 46802 on Form 28866-SV and state variations
thereof. Guarantees are based upon the claims-paying ability of the issuer.
Transfers from this stable value option to a competing fund may be restricted. Transfers may be made to noncompeting funds if there are no subsequent transfers to
a competing fund within 90 days.
LSVP175


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