Northwestern Mutual rolls out next-gen model portfolios

Northwestern Mutual is hoping to create a connection between financial advisors and young investors by walking the path of model portfolios. 

This week, the company announced the expansion of its professionally managed investment offerings with the launch of Signature Portfolios Market Pathway models, which require a minimum investment of only $5,000. 

Officials say the portfolios take a straightforward approach to investing using low-cost, broad-market exchange-traded funds that offer exposure and diversification across Northwestern Mutual Wealth Management Company's strategic asset classes. This allows advisors to create investing opportunities for younger clients who want to begin the financial planning process.

The models come in five varieties based on the investor's risk tolerance, ranging from conservative to very aggressive. They are designed to meet the needs of next-generation clients who are in the beginning stages of wealth building, as well as the needs of clients with multiple accounts that range in size.

"We are excited to deliver a new way for our advisors to serve the unique needs and goals of investors across the spectrum — especially younger clients looking to begin a relationship with a financial professional," Jeb Bentley, Northwestern Mutual Wealth Management Company president and CEO, said in a statement. "We are keenly focused on supporting the next generation of investors and are proud to offer a new way for our advisors to help them build wealth and greater financial security."

With a historic transfer of generational wealth as the backdrop, Northwestern Mutual wants to position itself to provide multigenerational planning and to grow with the next generation of investors. 

The average age of Northwestern Mutual advisors is 39 years old, while a report from J.D. Power states that the average age of advisors is 57 throughout the rest of the industry.

Northwestern Mutual also reports rapid growth and increasing recognition for its investment offerings in recent years. Northwestern Mutual's client assets under management stands at more than $250 billion as of Oct. 31.