Kestra Launches 2 New Model Portfolio Series

Kestra Investment Management, a financial advisory division of wealth management platform firm Kestra Holdings, announced Thursday it has launched two new model portfolio series, expanding its offerings for financial professionals and their clients.

The new multi-manager strategies, which Kestra described as cost-effective, follow the team’s first two model portfolio series, launched in June. The portfolios, developed and managed by an in-house team, have surpassed $150 million in assets under management.

Available only to clients of financial professionals associated with Kestra Holdings’ subsidiaries, the new model portfolio series are:

• Active Income Series: A new addition to Kestra Investment Management’s core portfolio offerings, the Active Income Portfolio is a diversified, multi-asset portfolio that incorporates actively managed funds. It is designed to maximize risk-adjusted total returns while providing additional yield and is available in seven different risk profiles.
• Satellite Series: This series comprises three distinct model portfolios that are designed to be paired with a core portfolio to address nuanced client needs for income and risk management. The three Satellite Series model portfolios are:
  • Multi-Asset Income Portfolio: This aims to generate higher income than the broad U.S. bond market through a diversified mix of fixed income, equity and nontraditional assets and strategies such as equity derivatives.
  • Tax-Aware Income Portfolio: A diversified fixed income portfolio designed to generate higher after-tax income than the broad U.S. bond market through a focus on tax-exempt bonds.
  • Liquid Alternatives Portfolio: This portfolio aims to diversify sources of risk and return beyond long-only equity and fixed income exposure by combining a mix of low- and high-volatility alternative strategies that can invest opportunistically in changing market conditions.

Kestra Investment Management’s model portfolios are built on an open architecture platform and incorporate ETFs and mutual funds offered by a variety of third-party managers.

Led by Kestra Holdings Chief Investment Officer Kara Murphy, the team provides hands-on support to financial professionals, including portfolio and tax transition analyses, personalized transition support, client-ready materials and ongoing education.

“We are thrilled to expand our lineup of investment solutions in order to better support the advisors we serve. Developed based on their extensive input and feedback, these model portfolios are specifically designed to fit financial advisors’ needs and those of their clients,” said Murphy. “We look forward to the continued growth of Kestra Investment Management and being able to serve even more financial professionals and their clients.”

The Model Portfolio Series are managed by Kestra Investment Management, with Head of Portfolio Management Derek Schug and portfolio managers Mouna Pyneni and Alan Zhang heavily involved.

“Our initial offering of model portfolios surpassed $150 million AUM within just eight months, making it clear that these types of offerings are serving a need for our financial professionals and clients,” Kestra Holdings CEO  James Poer said. “By outsourcing and leveraging the expertise of the Kestra Investment Management team, our advisors can focus more on helping clients reach their financial goals.”

Kestra Holdings companies collectively oversee $122 billion in assets under administration and support more than 2,400 independent financial professionals in the U.S.

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