Our Investment Approach - Questions for Russ Swansen and Todd Sipe, Thrivent Financial for Lutherans.

Q: The news is filled with stories about tough economic times. How is Thrivent Financial weathering the storm?

Russ: Extraordinarily well. Financially, Thrivent Financial is as strong as it’s ever been. Our capital ratio—a key measure of an insurance company’s financial health—is among the strongest in the industry. This strength stems from our overall philosophy: a steady, disciplined approach across the board.
Todd: It’s a philosophy built on the principle of stewardship that really ties in with who we are as an organization and what our clients expect. Thrivent Financial Bank’s prudent lending standards will keep us going through these uncertain economic times.

Q: How has Thrivent Financial managed to steer clear of some of the problems caused by the current market volatility?

Russ: We’re strong because we have a high-quality, broadly diversified investment portfolio, and because we stayed away from the types of investments that have caused problems in the marketplace.
Todd: Because the bank didn’t follow the market into the high-risk business, we haven’t had to make many changes to our lending practices. As a result, the bank has plenty of money to lend and our liquidity is good.

Q: What about the subprime crisis? Was Thrivent Financial heavily involved?

Russ: Thrivent Financial has had minimal involvement in subprime mortgages. As with all of our investments, Thrivent Financial has been very diligent and deliberate with our activity in the residential mortgage market.
Todd: Thrivent Financial Bank has never offered subprime mortgages, so we didn’t face the issues some other banks did. When helping clients with lower credit scores, we take special care to make sure they have the ability and equity to repay the mortgage.

Q: What is Thrivent Financial’s approach to investments?

Russ: We do our own homework and perform our own proprietary research with a professional staff that specializes in specific market investment areas or industries. While we’re aware of what others on Wall Street are saying, we don’t rely heavily on external information such as rating agencies, brokers or bond insurers. To keep our commitment to our members, we are not afraid to step away from investments that may be popular or fashionable but we feel are growing in risk. Also, we continually monitor our portfolios for potential problems or opportunities and adjust accordingly.

Q: How is Thrivent Financial preparing for future economic setbacks?

Russ: We will continue our same approach—focusing on a high-quality, diversified investment portfolio, seeking competitive and consistent returns and relying on our own investment analysis. However, we also will respond to changing market conditions and closely watch the quality of our investments during periods of market turbulence. It’s important to note, volatile markets often provide some good buying opportunities, and as select investment prices decline, we are alert to potential buying opportunities, as well.
Todd: While more uncertainty is ahead, with it comes opportunity. Meanwhile, the bank remains focused on meeting the current needs of clients with new options like our Debt Savvy(SM) program geared to help clients manage debt and find financial balance.