PFM is proud to announce the launch of its Stable Value Diverse Manager (SVDM) strategy. The announcement of the SVDM Strategy is the culmination of more than a year of planning, organizing and negotiating by PFM and its strategy partners. This solution represents an important development given renewed efforts across the country to both emphasize diversity, equity and inclusion (DEI) and to promote minority- and women-owned businesses which, historically, have had limited opportunities in asset management.
PFM’s SVDM strategy is the first turnkey multi-manager diversity solution offered to the defined contribution and stable value markets. While stable value has provided principal protection to defined contribution plan participants for more than 35 years, it has not traditionally implemented solutions featuring diverse firms, except in rare situations, when directed by a plan sponsor. When implemented, it has tended to be in conjunction with a small number of large firms, rather than part of a broader strategy to bring emerging firms into the market.
For more than 20 years, PFM has been actively partnering with minority- and women-owned firms in its fixed income business as part of its role in the creation of innovative and customized solutions for clients. These partnerships, combined with our experience in stable value and our management of over $100 billion in short-and intermediate-duration fixed income assets, makes PFM uniquely qualified to introduce this strategy to the market.
The majority of the SVDM assets (targeted between 60%-70%) will be managed by certified minority/women-owned business enterprises, while PFM will manage the remaining funds. We have partnered with Garcia Hamilton & Associates L.P. and Xponance, Inc. to implement a short-to-intermediate fixed income strategy that can be wrapped by one or more issuers. PFM will act as the manager responsible for the strategy, which may encompass either a client’s entire stable value fund or a sleeve within the fund. This strategy is currently available as a separately managed account solution.
For more information, please contact Steve Schaefer at 860.929.0841 and schaefers@pfm.com.
About PFM
At PFM, over 600 employees - asset managers, financial advisors and consultants - partner with clients in every region of the country to transform their world. We combine superior financial advice, disciplined management and ingenuity to build, power, move and educate.
PFM is the marketing name for a group of affiliated companies providing a range of services. All services are provided through separate agreements with each company. This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation.
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