Strive Asset Management plans move into model portfolios

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Strive Asset Management, the activist exchange traded fund manager founded by Republican US presidential candidate Vivek Ramaswamy, plans to “imminently” roll out model portfolios and a collective investment trust, a regulatory filing shows.

The models would utilise the manager’s approach to shareholder proposals, shareholder voting and public and private engagement, the manager disclosed.

“Strive engages in advocacy intended to encourage public companies to focus on economic factors in maximising value for shareholders,” according to the filing.

“This may include submitting or supporting shareholder proposals at public companies, advocating for changes in management or corporate structure at public companies, and a wide variety of corporate and/or public engagement.”

The models would use Strive ETFs and one third-party ETF that “was selected for investment exposure needs where a Strive ETF does not currently exist”, a Strive spokesperson said. She did not identify the third-party ETF.

Strive would also soon launch its first CIT, the filing notes.

The manager would receive fees only for the underlying Strive ETFs in each model portfolio and would not charge additional model-specific fees, the filing states. Strive would also charge a “sliding scale” of up to 49 basis points for CIT fees, meaning that the cost will be inclusive of up to 49bp in underlying ETF fees.

Strive’s 11 ETFs have expense ratios of between 5bp and 49bp, prospectuses show.

Strive launched its first ETF — the now-$365mn US Energy ETF — in August 2022. The ETF was touted by Strive as promoting investment in fossil fuels in opposition to mandates focused on environmental, social and governance investing.

Last month, the firm’s ETF suite topped $1bn in combined assets. Investors piled $613mn into those products during the year that ended September 30, according to Morningstar Direct.

Ramaswamy stepped down from his role as executive chair in February to run for president. Two months later, the firm named former California Public Employees’ Retirement System investment manager Matt Cole as its first chief executive.

The company announced in March that it planned to roll out a pooled employer plan for small and midsized businesses for workers who wish to “opt out of the politicisation of their retirement accounts”. At the time, the firm launched a website for the PEP, but that website now redirects to the Strive homepage.

The Strive spokesperson declined to comment on when any of the new product lines, including the PEP, would be launched. However, she noted that announcements regarding each were “coming soon”.

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