Now leaving ThriventFunds.com

 

You're about to visit a site that is neither owned nor operated by Thrivent Asset Management.

In the interest of protecting your information, we recommend you review the privacy policies at your destination site.

Financial Professional Site Registration

Complete this form to get full access to the entire financial professional site.

By clicking “Register”, you agree to our privacy and security policies and that you are a financial professional.

Access will be granted immediately, but the registration process may take up to 5 business days to complete.

Thank you for registering

You can now enjoy all financial professional content.

If your download does not start automatically, click here.

An error occurred

Please check back later.

FUND COMMENTARY

Thrivent Mid Cap Value Fund: Banking sector investing

By Graham Wong, CFA, Senior Portfolio Manager | 10/31/2023

10/31/2023

 

Portfolio manager Graham Wong, CFA, discusses how his team analyzes banks to identify those with strong risk management.

Video transcript

With bank investing, risk management is always the number one key. Understanding risk culture, whether it’s leverage and credit underwriting, which was last cycle’s problem; or balance sheet management, which is this cycle’s problem. Because of our focus on risk culture, the banks that we hold in the Fund have performed pretty well during this period.

In terms of the overall banking system, our work shows that it’s not a systemic risk. We believe that there are a handful of bad players that didn’t manage risk properly as rates rose. We’re monitoring emergency lending data that comes out on Thursdays and weekly deposit data that comes out on Fridays to make sure that our conclusion is correct.

Lastly, in terms of stock picking in this area, we really dig into the 10Qs and 10Ks, we look for liquidity, capital and other disclosures to make sure that we own well-capitalized banks with strong risk management, high quality deposits that will take market share in this environment.

Graham Wong, CFA
Senior Portfolio Manager


Related videos:

Thrivent Mid Cap Value Fund: Risk management


Thrivent Mid Cap Value Fund: Defining value investing


Thrivent Mid Cap Value Fund: Challenging the consensus

Related Insights

Market Update [VIDEO]

04/05/2024

Q2 2024 Capital Markets Perspective

Q2 2024 Capital Markets Perspective

Q2 2024 Capital Markets Perspective

As 2024 unfolds with surprising resiliency, Thrivent Asset Management leaders explore the impact of delayed Fed rate cuts, “sticky” inflation and the evolving landscape of equities and fixed income markets.

As 2024 unfolds with surprising resiliency, Thrivent Asset Management leaders explore the impact of delayed Fed rate cuts, “sticky” inflation and the evolving landscape of equities and fixed income markets.

04/05/2024