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Security Benefit has the option of tacking on newly-created riders in the future, keeping the product from becoming outdated.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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