NU Online News Service, Aug. 25, 2003, 1:44 p.m. EDT – AEGON Institutional Markets, Louisville, Ky., is reporting $6.3 billion in sales of stable value investment products for the first half, up from $5.6 billion for the first half of 2002.
AEGON’s stable value balances increased to $37 billion June 30, from $31 billion a year earlier.
Other companies have reported drops in sales of other fixed-rate products, such as fixed annuities, but AEGON Institutional says strong sales of stable value products to participants in retirement plans and 529 college savings plans helped its results.
AEGON Institutional, a unit of AEGON N.V., The Hague, Netherlands, is the largest U.S. provider of stable value products.
A stable value product is a fixed-rate account backed by an insurance company, bank or other financial services company. The rates usually are similar to the rates paid by bond funds, AEGON Institutional says.