PRACTICE MANAGEMENT
Model portfolios are designed to address the specific risk and return objectives of your clients.
Model portfolios free you and your staff of the time and effort to research the market and manage your client’s portfolios.
The Thrivent Managed Accounts program offers financial professionals a simple and effective way to build their practices while offering their clients a high level of professional portfolio management. The Thrivent Managed Accounts program is offered by Thrivent Asset Management, LLC which serves as the investment adviser for the Thrivent Mutual Funds.
These model portfolios are actively managed portfolios of mutual funds and exchange traded funds that can be geared to the specific risk and return objectives of your clients.
As a financial professional, you can help your clients determine which model works best for their unique situations. Once that decision is made, you simply allocate their assets to the appropriate model portfolio template and let the Thrivent Model Portfolios team handle the day-to-day decisions in the portfolio investment decisions.
The model portfolios solution offers several key advantages:
Thrivent offers a variety of model portfolios to meet the varied time horizons, risk tolerances and income needs and goals of most investors. The portfolios are designed with a complete investor life cycle in mind from growth of assets to retirement income.
The Thrivent Managed Accounts program features 10 options: five SELECT models that focus on accumulation, three faith-based models that focus on accumulation and seek to integrate finances with faith and two income-focused models designed to generate income. (See chart below.)
You can expect trade notices and quarterly commentaries about portfolio changes through the Managed Accounts program. While these documents aren’t approved for client use, they can assist you in communicating with your clients to explain portfolio changes and results.
Thrivent Asset Management, LLC produces monthly performance reports and quarterly commentaries for your use to understand the activity happening in the funds. These commentaries provide economic and market overviews, comments regarding the performance of the portfolios and the latest holdings and changes.1
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The broad and experienced team of Thrivent investment professionals oversees the managed accounts investment process. Key features of the program include:
Long-term oriented. The investment team initially sets up the long-term strategic allocations of each portfolio and monitors these accounts daily in terms of risk management, manager performance and potential tactical changes.
Active management. The team actively trades the model portfolios—shifting tactical allocations when deemed necessary—and will replace funds when performance has deteriorated, when their investment style has shifted or when a significant change in management or process casts doubt on the fund’s ability to produce similar results in the future.
Style purity. The management team uses a sophisticated selection process intended to identify style-pure managers and funds with consistent risk-adjusted performance that it believes are most likely to outperform over a full market cycle. Then the team monitors managers and funds on an ongoing basis to make sure they maintain this style consistently. This discipline helps to ensure that the model portfolios consistently provide market exposures that align with the team’s overall market views and objectives.
Diversification of styles and managers. The Thrivent Managed Accounts program provides a broad array of investment styles and managers. The Model Portfolios team uses a hybrid approach in terms of management styles, blending both actively managed and passive funds. The actively managed products may use either a fundamental, bottom-up security selection process or an active quantitative-based management approach. Additionally, the team recognizes that sometimes passive exchange-traded funds (ETFs) may be the best way to maintain tactical exposures or hedge active exposures to specific asset classes while keeping expenses down. Thrivent model portfolios also use a diverse blend of proprietary and non-proprietary funds, while many competitors offer model portfolios that use mostly or only proprietary funds.
As-needed trading. While many firms have a set schedule to conduct trades in model portfolios on a quarterly or monthly basis, Thrivent Model Portfolios team has a more fluid and responsive process. These professionals constantly monitor the portfolios using both quantitative and qualitative tools, relying on the latest market and economic data to form views and make decisions. They implement tactical trades in the model portfolios as needed rather than according to a pre-set schedule. The team will also trigger rebalancing as needed to keep the model portfolios in line with target allocations.
Flexible income distribution options. Clients in Thrivent Income-Focused Managed PortfoliosTM have the option to reinvest dividends or to request a set amount of income on a monthly, quarterly or yearly basis. They can choose to automatically distribute all the dividends from the underlying mutual funds in either income-focused model. Although this means the clients’ income amounts will fluctuate, it is the most efficient distribution method because clients are not selling positions to pay income, which could necessitate some unintended rebalancing.
Continual oversight. Thrivent model portfolios are developed by a dedicated portfolio manager and research analyst who work hand-in-hand with Thrivent’s Mixed Assets & Market Strategy team for strategic and tactical allocations. In addition, guidance comes from the Thrivent Asset Management Investment Strategy committee, which includes Thrivent Asset Management’s most senior executives. Portfolios are monitored continuously for their overall performance, the underlying funds’ performance, manager changes and style purity.
Thrivent Asset Management launched its first mutual fund in 1970 and its asset allocation funds in 2005. The Thrivent SELECT Managed PortfoliosTM, created in 2007, have a long track record of performance, and the Thrivent Income-Focused Managed Portfolios have been around since 2012. The Thrivent Faith-Based Managed Portfolios were launched in 2020.
The Thrivent Managed Accounts program is supported by the full power of a Fortune 500 company with more than $179 billion in assets under management.2 The investment team is comprised of more than 140 seasoned investment professionals, of which more than 80% have a graduate degree, a CFA® designation, or both. More than 80% of Thrivent investment professionals also have at least 10 years of investment industry experience and more than 50% have at least 20 years.
To learn more about the Thrivent Managed Accounts program, contact a regional consultant or call 800-521-5308.
1 Check with your organization for any specific policies or procedures they have related to these advertising materials as they can choose to use them.
2 As of 12/31/2023. Includes the Thrivent General Account (which manages surplus and the assets backing our life insurance, fixed annuity and health products), variable subaccount portfolios (primarily connected to variable annuities and variable universal life insurance), funds (including open-end and exchange traded funds) and other assets related to our affiliates and other subsidiaries.
Investing involves risk, including the loss of principal. The prospectus and summary prospectus for the securities within the model portfolios contain more complete information on the investment objectives, risks, charges, expenses and other information of the fund, which investors should read and carefully consider before investing. To obtain prospectuses, contact your Regional Investment Consultant or call 800-521-5308.
Thrivent Asset Management, LLC’s role is providing sponsors of managed accounts with non-discretionary investment advice in the form of model portfolios. The implementation of or reliance on a model portfolio is at the discretion of the managed account sponsor. Thrivent Asset Management, LLC is not providing personalized investment advice or investment recommendations and will not make any representations about the suitability of a model portfolio for any investor. The information provided is also not intended as a source for tax, legal or accounting advice. Please consult with a legal and/or tax professional for specific information regarding your individual situation. Thrivent Managed Accounts information is intended for use only by third-party adviser firms in conjunction with their management of their clients’ accounts. The information about the Thrivent Managed Accounts is confidential and should not be disclosed, copied or used for any other purpose. Thrivent Asset Management, LLC does not have investment discretion over, or place trade orders for any portfolio derived from this information.
Thrivent Managed Accounts may include Thrivent Mutual Funds. Thrivent Asset Management, LLC, an SEC-registered investment adviser, serves as investment adviser and administrator to the Thrivent Mutual Funds and receives fees for its services as disclosed in the applicable prospectuses and Statement of Additional Information. Thrivent Managed Accounts may include Thrivent Mutual Funds managed by Thrivent Asset Management, LLC, which may create a conflict of interest. Thrivent and its subsidiaries may earn distribution and other fees, including 12b-1 fees, in connection with Thrivent Mutual Funds. At this time, Thrivent Asset Management does not receive any direct fees for the provision of model portfolios, although it could receive such fees if negotiated with the program sponsor. For more information about potential conflicts of interest, read the Thrivent Asset Management, LLC Form ADV – Part 2 Brochure. The distributor for Thrivent Mutual Funds is Thrivent Distributors, LLC, a registered broker-dealer and member FINRA. Thrivent Distributors, LLC and Thrivent Asset Management, LLC are subsidiaries of Thrivent, the marketing name for Thrivent Financial for Lutherans.
