The Markets October 15, 2014

Long-Term Funds Struggled in September

Long-term mutual funds experienced net outflows of $900 million in September, according to Strategic Insight (SI), an Asset International Company.
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SI’s monthly report on mutual fund asset flows shows net intake for equity products totaled $18.8 billion in September. International equity funds showed strong and persistent demand during the month, attracting $13 billion. U.S. Equity funds attracted $5.8 billion in September on continued demand for natural resources (up $2.1 billion) and income-mixed funds ($1 billion), according to SI.

Outflows from long-term fund types were primarily the result of a $23.1 billion aggregate net outflow from taxable bond funds during the month. The fund categories of objective corporate intermediate maturity (-$21.4 billion) and corporate high yield (-$6.7 billion) drove outflows from the asset class. Tax-free bond funds experienced net inflows, however, totaling $3.4 billion.

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Overall, equity funds experienced negative one-month returns in September, as growth concerns in the ex-U.S. markets produced a -4.1% average return for international equity funds during the month. U.S. equity funds also ended September lower, SI says, recording a -2.4% average one-month return. Taxable bond funds were also negative, at -1.0% during the month, while tax-free bond funds ended the month slightly higher with an average 0.2% return.

Money market fund net deposits totaled $24.1 billion in September.

Information on how to obtain research reports from Strategic Insight is available at www.sionline.com.

Products October 15, 2014

BOLD Campaign Provides Step-By-Step Financial Planning

Securian Financial group has unleashed a campaign called BOLD, for “Business Owner Life-stage Design,” that helps advisers address and plan for the many financial needs of small business owners.
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The campaign presents a framework for streamlining a business owners’ financial priorities into a set of personal and business “lifecycles,” which are then supported by the adviser. The personal side encompasses things like personal retirement income and estate planning, while the business side includes administration of retirement plans, executive compensation, key person protection, and succession issues. 

A second aspect of BOLD is an informal valuation of client businesses, known as the “Business Benchmark,” which helps the small business owner develop a realistic view of what their firm might be worth.

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Securian says it has recently conducted research among 500 small business owners, showing that while one-third of small business owners plan to leave their business in the next five years and 60% plan to leave in 10 years, many do not have any formal exit plans. The BOLD campaign addresses this important concern, Securian says.

More information on BOLD and other Securian servcies is at www.securian.com.

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