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Stable Value Fund State


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									State of Wisconsin
Deferred Compensation Program

 This Disclosure summarizes information about the Stable Value Fund offered as an investment option under
 the Wisconsin Deferred Compensation Program (“WDC”). WDC participants should read and retain this
 Disclosure for future reference.

        Key Information ................................................................................................... page 2
        Who Should Consider Investing ........................................................................... page 2
        Investment Objective And Policies ....................................................................... page 2
        Risks .................................................................................................................. page 4
        Fund Management And Structure ......................................................................... page 5
        Fees And Expenses ............................................................................................. page 5
        Valuation Of Units ............................................................................................... page 5

        Investments in the Fund are NOT bank deposits, are NOT guaranteed by the WDC, the Wisconsin Department of
        Employee Trust Funds or the investment adviser, are NOT insured by the Federal Deposit Insurance Corporation or any
        other agency of the U.S. Government, and are subject to investment risks, including loss of principal. The Fund is not
        an investment company and, accordingly, is not required to be registered under the Investment Company Act of 1940. This
        Fund is only available to participants.

        Copies of the Disclosure. For additional copies of this Disclosure, go to and
        select the Investments tab. Select “Plan Investments” and then “Fund Overview.” Or, call the
        WDC toll-free at 1-877-457-WDCP (9327).

        Account Information. For account balance, performance and other WDC information, go to and login via the Secure Account Access link using your WDC user name and
        personal identification number (PIN). Or, call the WDC toll-free at 1-877-457-WDCP (9327).
        Staff at this number can also help you login to the WDC Web site or reset your WDC PIN.

        For additional information about Galliard Capital Management, please visit the firm’s website at, or write to the following address and ask for a copy of Galliard’s Form ADV
        which provides information about the adviser and its business.

                  Galliard Capital Management, Inc.
                  Att’n: WDC Stable Value Fund
                  800 LaSalle Avenue
                  Suite 1100
                  Minneapolis, MN 55402-2054

                                                                                                                     Revised April 2009
State of Wisconsin
Deferred Compensation Program

 KEY INFORMATION                                               other investment options and remain there for a
                                                               90-day period before they can be exchanged into
 The Stable Value Fund (“Fund”) is a managed                   the Money Market Fund, FDIC option or Federated
 investment fund offered by the WDC exclusively for            U.S. Government Securities Fund.
 participants. The Fund is advised by Galliard Capital
 Management, Inc. , a wholly owned subsidiary of               WHO SHOULD CONSIDER INVESTING
 Wells Fargo Bank, N.A. The Fund invests in investment
 contracts issued by high quality financial institutions       You should consider investing in the Fund if:
 which are backed by a high quality portfolio of fixed          • You are looking to safeguard principal;
 income securities managed by Galliard and certain              • You are looking for stable income;
 stable value collective funds Trusteed by Wells                • You are seeking an investment with
 Fargo and advised by Galliard, Pacific Investment               low volatility.
 Management Company (PIMCO), and Aberdeen
 Asset Management. The Fund’s holdings are held in a           You should not consider investing in the Fund if:
 custody account with Wells Fargo Bank, N.A.                    • You are looking for FDIC insurance coverage or
 Objective. The Fund seeks to provide safety of                  interest that is guaranteed for a specific period,
 principal while earning a reasonable level of interest          such as in a certificate of deposit;
 income consistent with an underlying portfolio of              • You are unwilling or unable to accept that you
 short to intermediate duration high quality fixed               may lose money on your investment;
 income (bond) securities, and maintain adequate                • You are unwilling to accept the risks involved in
 liquidity to accommodate participant transactions.              the securities market.
 There is no assurance that the Fund will achieve its
 objective.                                                    Who May Invest. The Fund is offered exclusively to
                                                               WDC participants. There is no minimum amount for
 Strategy. The Fund will pursue its objective through          initial and subsequent purchases of Fund units.
 the active management of a diversified portfolio of
 high quality fixed income securities coupled with a           INVESTMENT OBJECTIVE AND POLICIES
 wrap contract (together known as a Security Backed
 Contract), Guaranteed Investment Contracts, and/or            The Fund’s investment objectives are:
 Bank Investment Contracts issued by major financial            • Safety of principal
 institutions. Refer to the Investments section for             • Current income
 information about these contract types.                        • Adequate liquidity
 Risk vs. Return. The Fund is designed for investors            • Long term returns superior to
 who seek current income, preservation of principal              shorter maturity alternatives
 and liquidity. No government agency either directly
 or indirectly insures or guarantees the performance           The primary emphasis in managing the Stable
 of the Fund. When interest in the Fund is redeemed            Value Fund is preservation of principal. Liquidity is
 it may be worth more or less than the amount paid             another key element in the strategy since the Fund
 for it.                                                       must accommodate participant withdrawals and
                                                               investment transfers in a timely manner.
 Trading Restriction. A trading restriction will
 be imposed on transfers out of the Stable Value
                                                               Once these objectives are met, the Fund adviser’s
 Fund into the Money Market Fund, FDIC option
                                                               focus is on selecting the best securities available
 or Federated U.S. Government Securities Fund
                                                               to provide participants with competitive returns
 (considered “competing funds”). This means
                                                               compared to shorter maturity fixed income
 participants are not allowed to transfer dollars
                                                               alternatives. To achieve its investment objectives,
 directly from the Stable Value Fund to the Money
                                                               the Fund invests in a variety security backed
 Market Fund, FDIC option or Federated U.S.
 Government Securities Fund. To comply with the
 restriction, dollars must first be exchanged into         2                                    (Continued on page 3)
State of Wisconsin
Deferred Compensation Program

 contracts (SBCs). Refer to the Investments section            to the volatility of the overall Fund.
 for information about these contracts. The Stable
 Value Fund is appropriate for investors seeking more          The Fund’s advisor, Galliard Capital Management,
 income than money market funds without the price              may manage certain of the actively managed Security
 fluctuation of stock or bond funds.                           Backed Contracts within the Fund directly. The Fund
                                                               has also selected other non-affiliated investment sub-
 INVESTMENTS                                                   advisors to manage certain assets as well. Current
                                                               outside managers used within the Fund include
 Security Backed Contracts (“SBCs”). In structuring            Pacific Investment Management Company (PIMCO)
 a security-backed contract, the Fund purchases                and Aberdeen Asset Management. Galliard monitors
 one or more marketable fixed income portfolios,               outside manager performance, and also monitors all
 which are held and owned by the Fund on behalf                purchases and sales in sub-advisor portfolios and
 of investors. The Fund then contracts for a fee with          assures all managers function within established Fund
 a financially responsible third party such as a large         investment guidelines for diversification, quality, and
 bank or insurance company to assure payments for              interest rate volatility (duration).
 participant withdrawals and transfers at book value
 (principal plus credited interest). This contract is          Stable Value Collective Funds. The Fund may
 typically referred to as a “wrapper agreement” or a           invest in stable value collective trusts, which have
 “wrap”. The issuer is a “Wrap Provider.” The yield            similar objectives to the Fund and invest in assets
 changes over time based on the impacts of the cash            as described above. Currently, the Fund invests in
 flow, the fixed income portfolio’s duration and the           the Wells Fargo Stable Return Fund which is a large
 market value of the underlying fixed-income securities.       stable value collective trust fund trusteed by Wells
 Gains or losses are recognized over time by adjusting         Fargo Bank, N. A. and advised by the Fund’s adviser,
 the yield of the portfolio. The underlying fixed-             Galliard Capital Management, Inc.
 income securities for security backed contracts that
 the Fund may purchase include, but are not limited to         Other Investments / Cash Reserves. The Fund may
 U.S. government securities, collateralized obligations        invest in other collective investment trusts with
 such as mortgage backed or asset backed securities,           investment objectives that are consistent with the
 corporate debt obligations and derivative investments         Fund’s investment strategy. The Fund may also invest
 including futures, options and swaps. The SBC                 in other assets including high quality money market
 contracts are generally not assignable or transferable        instruments.
 and, therefore, are illiquid investments. However, the
 underlying fixed-income securities are marketable             Portfolio Diversification. The Fund can invest up to
 and may be exchanged for other fixed-income assets,           85% of its assets in Security Backed Contracts (SBCs)
 with the knowledge and consent of the wrap provider,          which are comprised of diversified portfolios of high
 providing added flexibility.                                  quality fixed income securities and a wrap contract.
                                                               The Fund contracts with multiple wrap providers for
 Active Management. The Security Backed Contracts              diversification and default risk reduction purposes.
 utilized within the Fund are backed by actively               The overall average credit rating of the contract
 managed portfolios of fixed income securities in              issuers in the Fund will be maintained by the Fund’s
 varying investment styles. Active management of the           adviser at a minimum of AA-/Aa3. The marketable
 fixed income securities can improve diversification           fixed income securities underlying the Security
 and enhance performance of the Fund through use of            Backed Contracts must be rated investment grade at
 fixed income management strategies including, but             time of purchase and the minimum average quality
 not limited to, sector allocation, yield curve analysis       of the underlying portfolio must be at least AA-/
 and issue selection. Such strategies can positively           Aa3. The overall duration of the Fund is maintained
 or negatively affect the earnings rate of the Security        between 3.0 and 5.0 years.
 Backed Contract over time without adding materially                                             (Continued on page 4)
State of Wisconsin
Deferred Compensation Program

 Use of Derivatives. The Fund may enter into                     Interest Rate Risk. Interest rate risk in stable value
 transactions in certain derivatives, each of which              investing is primarily a function of reinvestment
 involves risk. Derivatives are financial instruments            of cash flows. Interest rate risk is lessened within
 whose values are derived, at least in part, from the            the Fund by (1) primarily investing in investment
 prices of other securities or specified assets, indices,        contracts with the intention of holding them to
 or rates. A variety of risk management procedures               maturity and (2) through active management, the
 ensure the Fund’s use of derivatives is closely                 fund adviser intends to select investments that
 monitored, remains consistent with the Fund’s                   provide predictable consistent cash flow through
 objectives and avoids undue exposure to risk.                   varying maturities and interest payment features.
                                                                 The Fund also maintains a short to intermediate
 Securities Lending. As of April 2009, the Fund                  duration, reducing the volatility of longer-term
 does not participate in securities lending activities.          investments. Also, changes in interest rates affect
 However, the Fund does have the ability to do so as             the prices of the underlying fixed income securities.
 opportunities present themselves.                               In general, as interest rates rise, the prices of the
                                                                 fixed income securities fall, and vice versa. Like
 RISKS                                                           all fixed income investment options, the Fund is
                                                                 subject to reinvestment rate risk, meaning cash
 The Fund is designed to allow participants to                   flows are reinvested as received at prevailing
 transact at book value (principal plus credited                 interest rates which may be more or less than the
 interest). There are a number of risks and events that          current yield of the overall Fund.
 may positively or adversely affect future yields of the
 portfolio. These risks include:                                 Liquidity Risk. Liquidity risk is reflected when the
                                                                 liquidation of contracts/securities is necessary to
 Default (Credit) Risk. Default risk refers to the               meet liquidity demands on the portfolio. The Fund
 possibility that parties who issue securities or                is structured to provide adequate liquidity for
 instruments purchased by the Fund may not be                    normal withdrawal needs.
 financially able to make interest or principal
 payments when due. The default risk of securities               Event Risk. A material plan event or plan sponsor
 issued or guaranteed by the U.S. Government or                  event including but not limited to changes in the
 its agencies or instrumentalities is low. The default           law or regulation, bankruptcy of the employer, plan
 risk on contract providers or other securities is               termination, early retirement programs, or group
 moderately higher. However, to be eligible for                  layoff of employees may result in termination of
 acquisition by the Fund, an investment contract must            a wrap contract. Termination of a wrap contract
 be issued by an institution whose credit worthiness             may result in participant transactions occurring
 has been approved by Galliard Capital Management                at market value, which may be higher or lower
 based on its comprehensive internal credit evaluation           than book value. However, due to the nature of
 and third-party ratings by recognized credit-rating             public plans and certain contract provisions, the
 agencies. This risk is mitigated by investing in high           probability of a wrap termination is extremely low.
 quality assets and contracting with high quality                In addition, wrap providers will typically work
 contract issuers as well as focusing on very broad              with the investment manager and the plan sponsor
 diversification of the underlying securities. In the case       to retain book value coverage, if at all possible,
 of a Security Backed Contract, the risk of loss due             although future crediting rates may be impacted as
 to a default of the institution providing the wrap is           a result of the event.
 minimized because the Fund owns the marketable
 securities backing the investment contract. There is
 a risk that the market value of the securities owned
 may be lower than the book value.                                                                (Continued on page 5)
State of Wisconsin
Deferred Compensation Program

 FUND MANAGEMENT AND STRUCTURE                                 Investment Contract (Wrap Provider)/ Securities
                                                               Transaction Costs. The Fund will pay all investment
 Fund Management. Galliard Capital Management,                 contract costs including wrapper fees and brokerage
 Inc., a wholly owned subsidiary of Wells Fargo                commissions incurred on its portfolio transactions.
 Bank, N.A., is registered as an investment adviser            Securities brokers and dealers for the Fund’s portfolio
 under the Investment Advisers Act of 1940 and                 transactions are selected on the basis of their ability
 advises the Fund in a manner consistent with the              to provide the best execution on terms that do not
 policies described under “Investment Objective                include any charge for research services. Investment
 and Policies.” WDC participants have no voting                contracts are selected on the basis of issuer credit
 or management rights in the Fund. Galliard will               quality, ability to meet contract bid specifications
 devote resources it believes are necessary to fulfill         and cost.
 its management and administrative duties to the
                                                               Refer to the Fund Fact Sheet and quarterly
 Fund. Galliard will not invest the Fund’s assets in           performance reports to obtain the Fund’s expense
 investments that are not consistent with Galliard’s           ratio.
 obligations as a fiduciary under applicable laws or
                                                               VALUATION OF UNITS
 Reinvestment of Income. The Fund reinvests all of its
                                                               Valuation of Units. The Fund is valued daily with a
 income (including realized capital gains, if any); such
                                                               fluctuating unit value. Investment income is credited
 income will not be paid out as dividends or other
                                                               within the Fund daily resulting in an expected
 distributions. Income earned on assets in the Fund is
                                                               slight increase in the unit value on a daily basis.
 reinvested and included in net asset values.
                                                               The investment by a participant in the Fund results
                                                               in the issuance of a given number of participation
 Other Investments / Cash Reserves. For liquidity
                                                               interests (“Units”) in the Fund for that participant’s
 purposes, pending investments into investment
                                                               account. Galliard Capital Management determines
 contracts, and other investment-related purposes,
                                                               the purchase price and redemption price of Units (the
 the Fund will maintain at least 15% of its assets in
                                                               “Unit Value”) as of 5:00 PM Eastern time each day
 high quality money market instruments, and other
                                                               Galliard is open for business (a “Valuation Date”).
 collective investment trusts including stable value
                                                               Generally, the Fund’s Unit Value equals the total
                                                               value of assets held by the Fund, less any liabilities
                                                               (including fees payable to the adviser), divided by the
 FEES AND EXPENSES                                             total number of Units outstanding on the Valuation
 Advisory Fees. Galliard Capital Management charges
 an investment advisory fee for ongoing management             Suspension of trading. Under certain circumstances,
 and supervision of the investment and reinvestment            Galliard Capital Management may in its discretion
 of Fund assets, which is paid directly from the               choose temporarily not to execute requests to
 Fund and reflected in the yield of the Fund. This fee         purchase or redeem units of the Fund. Such
 includes investment management, custody, trust, audit         circumstances include restriction or suspension
 and other administrative expenses for the various             of trading on the exchanges where the Fund’s
 underlying collective investment funds managed by             portfolio of securities are traded and such other
 Galliard. The Fund also pays certain advisory fees            unusual circumstances as would in the judgement of
 for Security Backed Contracts managed by outside              Galliard, make disposal of the Fund’s investments
 advisors.                                                     not reasonably practicable. This may result in a delay
                                                               in the valuation date as of which the execution of
                                                               purchases and redemptions occur.

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