Adding ETFs to Managed Accounts

June 01, 2007 at 04:00 AM
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Securian Financial Services has introduced a new investment platform that uses exchange-traded funds. Dubbed "Securian Signal," the new managed accounts marry index investments with strategic and tactical allocations.

"Securian Signal allows our advisors to meet client needs in a particularly vigorous way. Integrating asset allocation, ETF investing and behavioral finance, Securian Signal allows clients to look to the long term while also having a built-in tactical decision process," says George Connolly, Securian's president and CEO. "It brings new direction and precision to the traditional investment account."

The portfolios are managed by XTF Advisors, which uses a tactical asset allocation model to monitor the economy and the markets. When economic signals are right, the model makes adjustments to a portfolio's asset class allocation, under- or over-weighting depending on market conditions. If the model indicates that equity markets are strong, for instance, more money will be shifted into equities. If equities look weak, more money will be shifted into fixed-income.

"No one else offers the same combination of advisor-based service along with the technical power of our disciplined approach," says Connolly.

Investments in the Securian Signal account are based on the investor's goals, time frame and tolerance for risk. When opening an account, the investor completes a concise questionnaire. The answers help identify which of seven portfolios is most appropriate; for example, an aggressive investor who is willing to take more risk in pursuit of higher returns will receive a portfolio weighted toward equities. A more conservative portfolio will include a higher percentage of fixed-income investments.

Securian Financial Services is a subsidiary of Securian Financial Group, which sells insurance, retirement plans and investments. As of December 31, Securian had $575 billion of life insurance in force, $28 billion in assets under management and a workforce of 3,300 employees in its St. Paul, Minn., headquarters and subsidiary offices across the country.

Ron DeLegge is the San Diego-based editor of www.etfguide.com.

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