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Rating:All Aboard, Active Traders! Not Rated 3.0 Email Routing List Email & Route  Print Print
Monday, April 09, 2001

All Aboard, Active Traders!

Reported by Tamiko Toland

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Security Benefit has the option of tacking on newly-created riders in the future, keeping the product from becoming outdated.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