In Practice April 3, 2007

Franklin Templeton Offers Adviser Guidance on Directed Trusts

A new white paper released by Franklin Templeton Bank & Trust provides guidance to advisers about using directed trust services to retain management of assets of affluent baby boomer clients.
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According to a press release, “Opportunity Knocks,” written by former Editor-in-Chief of Investment Advisor and Financial Planning magazines, Bob Clark, provides a comprehensive overview of the directed trust market, addressing topics such as:

  • The positive revenue impact that providing directed trust services can have on an advisory practice;
  • The importance of working with the right corporate trustee;
  • Common trust solutions; and
  • How advisers can use directed trusts to attract and retain high net worth clients by meeting their critical legacy planning needs.

The paper examines the challenges to financial advisers created by affluent baby boomer clients who are placing assets in trust at record rates, and explains how new trust laws have laid the groundwork for solutions to these challenges, such as directed trusts. Unlike traditional trust services, directed trusts enable advisers to provide investment management, leaving only trust administration under the control of corporate trustees, the release explained.

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“As over a third of the U.S. population nears retirement, fulfilling clients’ trust needs is becoming an increasingly critical requirement for advisers seeking to retain and attract high net worth clients,” said Wendy Harrington, CEO and president of Franklin Templeton Bank & Trust, in the release.

Advisers can request a free copy of the white paper by calling 800-520-2993 or visiting www.advisordirectedtrust.com.

Products April 3, 2007

Securian Offers Managed Account Using ETFs

Securian Financial Services has unveiled a managed account product that uses exchange-traded fund (ETF) index investments along with strategic and tactical asset allocations.
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A Securian news release about its Securian Signal product said the portfolios will be managed by XTF Advisors, which uses a tactical asset allocation model that monitors the economy and the markets. When economic signals are right, the model makes investment adjustments. It does not change the types of investments in a portfolio, only the percentage of the portfolio invested in a particular asset class, the announcement said.

XTF Advisors can over- or under-weight specific asset classes depending upon changing market conditions. If the model indicates that equity markets are strong, more money will be shifted into equities. If equities look weak, more money will be shifted into fixed income, the news release explained.

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“Securian Signal allows our advisers 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,” said George Connolly, president and CEO, Securian Financial Services. “It brings new direction and precision to the traditional investment account.”

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