MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Monday, April 9, 2001 All Aboard, Active Traders! 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Security Benefit has the option of tacking on newly-created riders in the future, keeping the product from becoming outdated.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.
Rydex on a Roll, February 15, 2001 On the Move, January 10, 2001 Printed from: MFWire.com/story.asp?s=26677 Copyright 2001, InvestmentWires, Inc. All Rights Reserved |