Security Benefit has designs on active traders, giving advisors a come-hither with the launch of AdvisorDesigns. While many firms throw cold water on hot money, tax-sheltered variable annuities are a great home for advisors that don't want to simply buy and hold.
Rydex funds play prominently in the product's lineup, but the Topeka, Kansas-based firm also offers funds from seven other complexes.
The Rydex funds can be traded with no penalty once a day. The other funds, however, which represent core type holdings, will have limits that vary by firm. Once the firms establish trading limits, they can be imposed on a fund-by-fund basis through Security Benefit's system.
"We're working together on that," said
Elliott Schifman, vice president of strategic business development at Security Benefit. "I see a lot of rules being put forth and we're really working to put together a consensus. By having 24 of the 38 funds as Rydex funds, active traders have a real home here. One of the issues is that [trading] rules have not been communicated out there. The RIAs don't want to guess on that either."
Funds may be reluctant to set concrete trading guidelines under normal circumstances, for fear of drawing traders that toe the line without crossing it. However, because AdvisorDesigns houses Rydex's funds, those products will draw in most of the frequent trading.
Advisors can customize AdvisorDesigns with any of 13 riders. Furthermore, Security Benefit has the option of tacking on newly-created riders in the future, keeping the product from becoming outdated.
"We have a proprietary administration process that's allowed us to get over the administrative hurdles that have plagued most insurance companies," said Schifman. "The way we've structured the product is plug-and-play. We can add the newest rider to the base chassis. We fully intend to keep up with the new trends."
Although advisors are free to design packages of riders for individual clients, some with less experience working with variable annuities may feel at sea with so many choices.
"We recognize that having 13 rider options out there can be confusing for some reps," admitted Schifman. "For the agent that's not as familiar with these riders, we've developed a questionnaire called the annuity designer."
Security Benefit has also developed online software to help advisors manage their clients' accounts more easily and eliminate the hassle of calculating allocation changes to multiple accounts.
"We're offering the average RIA out there the software to manipulate individual trading rules or groups," said Schifman. "When they make an allocation change, the entire group would change at the same time."
Security Benefit developed AdvisorDesigns with the help of 50 active-trading advisors. From that group, the firm selected several advisors that tested and fine-tuned the product.
Mid-Cap Growth |
AIM |
AIM VI Capital Appreciation Fund |
High Yield Bond |
Federated |
Federated High Income Bond Fund II |
Intermediate Govt. |
Federated |
Federated Fund for U.S. Govt Securities II |
IT Bond |
Fidelity |
VIP Investment Grade Bond Portfolio Service Class II |
Large Blend |
Fidelity |
VIP Index 500 Portfolio Service Class II |
Large Growth |
Fidelity |
VIP Contrafund Portfolio Service Class II |
Large Value |
Fidelity |
VIP Growth Opportunities Portfolio Service Class II |
Large Value |
Neuberger Berman |
Neuberger Berman Advisers Management Trust Guardian Portfolio |
Mid-Cap Value |
Neuberger Berman |
Neuberger Berman Advisers Management Trust Partners Portfolio |
World Stock |
SMC/Oppenheimer |
SBL Fund Series D |
Emerging Markets |
Templeton |
Templeton Developing Markets Securities Fund Class 2 |
Foreign Stock |
Templeton |
Templeton International Securities Fund Class 2 |
Small Growth |
Templeton |
Franklin Small Cap Fund Class 2 |
Mid-Cap Value |
Strong Funds |
Strong Opportunity Fund II |
Money Market |
Rydex |
US Government Money Market |
Index Fund |
Rydex |
OTC |
Index Fund |
Rydex |
Arktos |
Index Fund |
Rydex |
Nova |
Index Fund |
Rydex |
Ursa |
International Funds |
Rydex |
Large Cap Europe |
International Funds |
Rydex |
Large Cap Japan |
Sector Funds |
Rydex |
Rydex Banking |
Sector Funds |
Rydex |
Rydex Basic Materials |
Sector Funds |
Rydex |
Rydex Biotechnology |
Sector Funds |
Rydex |
Rydex Consumer Products |
Sector Funds |
Rydex |
Rydex Electronics |
Sector Funds |
Rydex |
Rydex Energy |
Sector Funds |
Rydex |
Rydex Energy Services |
Sector Funds |
Rydex |
Rydex Financial Services |
Sector Funds |
Rydex |
Rydex Health Care |
Sector Funds |
Rydex |
Rydex Internet |
Sector Funds |
Rydex |
Rydex Leisure |
Sector Funds |
Rydex |
Rydex Precious Metals |
Sector Funds |
Rydex |
Rydex Retailing |
Sector Funds |
Rydex |
Rydex Technology |
Sector Funds |
Rydex |
Rydex Telecommunications |
Sector Funds |
Rydex |
Rydex Transportation |
Sector Funds |
Rydex |
Rydex Utilities |
Related Stories:
Rydex on a Roll, February 15, 2001
On the Move, January 10, 2001 
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