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Thrivent Core Funds

Filed: 27 Jun 19, 8:00pm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORMN-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number:811-23149

 

 

Thrivent Core Funds

(Exact name of registrant as specified in charter)

 

 

625 Fourth Avenue South

Minneapolis, Minnesota 55415

(Address of principal executive offices) (Zip code)

 

 

John D. Jackson, Assistant Secretary

Thrivent Core Funds

625 Fourth Avenue South

Minneapolis, Minnesota 55415

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: (612)844-7190

Date of fiscal year end: October 31

Date of reporting period: April 30, 2019

 

 

 


Item 1.

Report to Stockholders


SEMIANNUAL REPORT

April 30, 2019

 

 

THRIVENT CORE FUNDS


TABLEOF CONTENTS

 

Portfolio Perspectives

  

Thrivent Core Emerging Markets Debt Fund

   2 

Thrivent Core International Equity Fund

   3 

Thrivent Core Low Volatility Equity Fund

   4 

Thrivent Core Short-Term Reserve Fund

   5 

Shareholder Expense Example

   6 

Schedule of Investments

  

Thrivent Core Emerging Markets Debt Fund

   7 

Thrivent Core International Equity Fund

   12 

Thrivent Core Low Volatility Equity Fund

   16 

Thrivent Core Short-Term Reserve Fund

   19 

Statement of Assets and Liabilities

   27 

Statement of Operations

   28 

Statement of Changes in Net Assets

   29 

Notes to Financial Statements

   31 

Financial Highlights

   42 

Additional Information

   44 


THRIVENT CORE EMERGING MARKETS DEBT FUND

Kent L. White, CFA, and Cortney L. Swensen, CFA , PortfolioCo-Managers

The Fund seeks to maximize total return while providing high current income and capital appreciation. The Fund’s investment objective may be changed without shareholder approval.

Investment in Thrivent Core Emerging Markets Debt involves risks including credit, derivatives, emerging markets, ETF, foreign securities, high yield, interest rate, investment adviser, issuer, liquidity, market,non-diversified, quantitative investing, and sovereign debt risks. A detailed description of each risk can be found in the significant risks section of the accompanying notes to financial statements.

 

Bond Quality Ratings Distributions

 

LOGO

Major Market Sectors

(% of Net Assets)

 

Foreign Government

  94.9

Energy

  1.5

Utilities

  0.2
Top 10 Countries 
(% of Net Assets) 

Indonesia

  8.9

Turkey

  7.9

Saudi Arabia

  7.5

Qatar

  6.9

Mexico

  6.7

Argentina

  5.5

Russia

  4.7

Colombia

  4.4

Brazil

  4.0

Bahrain

  3.4
Investments in securities in these countries represent 59.9% of the total net assets of the Fund.

 

  

 

 

 

Bond quality ratings are obtained from Moody’s Investors Service, Inc. (“Moody’s”) and Standard & Poor’s Ratings Services (“S&P”). Ratings from S&P, when used, are converted into their equivalent Moody’s ratings. If Moody’s and S&P have assigned different ratings to a security, the lowest rating for the security is used. Not rated may include cash. Investments in derivatives and short-term investments are not reflected in the table.

Quoted Bond Quality Ratings Distributions, Major Market Sectors and Top 10 Countries are subject to change.

The lists of Major Market Sectors and Top 10 Countries exclude short-term investments and collateral held for securities loaned.

Bond Quality Ratings Distributions exclude collateral held for securitiesloaned.

 

2


THRIVENT CORE INTERNATIONAL EQUITY FUND

Noah J. Monsen, CFA and Brian W. Bomgren, CQF, PortfolioCo-Managers

The Fund seeks long-term capital appreciation. The Fund’s investment objective may be changed without shareholder approval.

Investment in Thrivent Core International Equity involves risks including equity security, foreign currency, foreign securities, investment adviser, issuer, large cap, market, mid cap, quantitative investing, and small cap risks. A detailed description of each risk can be found in the significant risks section of the accompanying notes to financial statements.

 

Portfolio Composition 
(% of Portfolio) 

Common Stock

  99.8% 

Short-Term Investments

  0.2% 
  

 

 

 

Total

  100.0% 
Major Market Sectors 
(% of Net Assets) 

Consumer Discretionary

   16.1

Consumer Staples

   13.0

Industrials

   12.9

Financials

   12.0

Materials

   10.2

Information Technology

   9.3

Health Care

   8.1

Communications Services

   6.7

Real Estate

   5.4

Utilities

   3.1
Top 10 Countries 
(% of Net Assets) 

Japan

   25.8

United Kingdom

   18.9

Canada

   9.7

Australia

   6.7

Switzerland

   6.5

Netherlands

   5.4

Sweden

   5.3

France

   5.1

Spain

   4.8

Denmark

   4.3
Investments in securities in these countries represent 92.5% of the total net assets of the Fund.

 

 

 

 

Quoted Portfolio Composition, Major Market Sectors and Top 10 Countries are subject to change.

The lists of Major Market Sectors and Top 10 Countries exclude short-term investments and collateral held for securities loaned.

The Portfolio Composition chart excludes collateral held for securities loaned.

 

3


THRIVENT CORE LOW VOLATILITY EQUITY FUND

Noah J. Monsen, CFA and Brian W. Bomgren, CQF, PortfolioCo-Managers

The Fund seeks to provide long-term capital appreciation with lower volatility relative to the domestic equity market. The Fund’s investment objective may be changed without shareholder approval.

Investment in Thrivent Core Low Volatility Equity involves risks including equity security, investment adviser, issuer, large cap, market, mid cap, quantitative investing, and small cap risks. A detailed description of each risk can be found in the significant risks section of the accompanying notes to financial statements.

 

Portfolio Composition 
(% of Portfolio) 

Common Stock

   99.8% 

Short-Term Investments

   0.2% 
   

 

 

 

Total

   100.0% 
Major Market Sectors 
(% of Net Assets) 

Information Technology

   17.7

Health Care

   16.2

Financials

   15.3

Consumer Staples

   14.3

Industrials

   11.0

Real Estate

   8.6

Utilities

   7.3

Consumer Discretionary

   6.3

Communications Services

   2.6

Materials

   0.4
Top 10 Holdings 
(% of Net Assets) 

PepsiCo, Inc.

   2.2

Mondelez International, Inc.

   2.1

NextEra Energy, Inc.

   2.1

Danaher Corporation

   2.1

McDonald's Corporation

   2.1

Home Depot, Inc.

   2.1

Amphenol Corporation

   2.0

UnitedHealth Group, Inc.

   2.0

Johnson & Johnson

   2.0

Colgate-Palmolive Company

   2.0

These securities represent 20.7% of the total net assets of the Fund.

 

 

 

 

Quoted Portfolio Composition, Major Market Sectors and Top 10 Holdings are subject to change.

The lists of Major Market Sectors and Top 10 Holdings exclude short-term investments and collateral held for securities loaned.

The Portfolio Composition chart excludes collateral held for securities loaned.

 

4


THRIVENT CORE SHORT-TERM RESERVE FUND

William D. Stouten, Portfolio Manager

The Fund seeks a high level of current income consistent with liquidity and the preservation of capital.

Investment in Thrivent Core Short-Term Reserve Fund involves credit, government securities, interest rate, investment adviser, mortgage-backed and other asset-backed securities, portfolio turnover rate, prepayment, redemption and lending, and redemption and share ownership risks. A detailed description of each risk can be found in the significant risks section of the accompanying notes to financial statements.

 

Portfolio Composition 
(% of Portfolio) 

Short-Term Investments

   100.0% 
   

 

 

 

Total

   100.0% 
Major Market Sectors 
(% of Net Assets) 

Financials

   43.3

Utilities

   10.5

ConsumerNon-Cyclical

   9.9

Consumer Cyclical

   6.3

Asset-Backed Securities

   5.8

Capital Goods

   4.6

Energy

   4.1

U.S. Government & Agencies

   3.3

Foreign

   3.0

Basic Materials

   2.8
Top 10 Holdings 
(% of Net Assets) 

Dealers Capital Access Trust, LLC

   0.7

Federal Home Loan Bank

   0.7

Mitsubishi UFJ Trust & Banking Corporation

   0.6

Commonwealth Bank of Australia

   0.6

Erste Abwicklungsanstalt

   0.6

State of Tennessee

   0.5

Long Island Power Auth.

   0.5

PepsiCo, Inc.

   0.5

U.S. Bank NA Ohio

   0.5

American Honda Finance Corporation

   0.5
 
These securities represent 5.7% of the total net assets of the Fund.

 

 

 

Quoted Portfolio Composition, Major Market Sectors and Top 10 Holdings are subject to change.

 

5


SHAREHOLDER EXPENSE EXAMPLE

(unaudited)

As a shareholder of a Fund, you incur ongoing costs, including administrative fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2018 through April 30, 2019.

Actual Expenses

In the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid during Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

In the table below, the second line provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical example that appears in the shareholder reports of the other funds.

 

    Beginning Account Value
11/1/2018
   Ending Account Value
4/30/2019
   Expenses Paid  During
Period

11/1/2018 -
4/30/2019*
   Annualized
Expense Ratio
 

Thrivent Core Emerging Markets Debt Fund

        

Actual

  $1,000   $1,071   $0.23    0.05

Hypothetical**

  $1,000   $1,025   $0.23    0.05

Thrivent Core International Equity Fund

        

Actual

  $1,000   $1,068   $0.32    0.06

Hypothetical**

  $1,000   $1,024   $0.31    0.06

Thrivent Core Low Volatility Equity Fund

        

Actual

  $1,000   $1,129   $0.20    0.04

Hypothetical**

  $1,000   $1,025   $0.19    0.04

Thrivent Core Short-Term Reserve Fund

        

Actual

  $1,000   $1,013   $0.04    0.01

Hypothetical**

  $1,000   $1,025   $0.04    0.01

 

*

Expenses are equal to the Portfolio’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 to reflect theone-half year period.

**

Assuming 5% annualized total return before expenses.

 

6


EMERGING MARKETS DEBT FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

 

Principal
Amount

  

Long-Term Fixed Income (96.6%)

  Value 

Argentina (5.5%)

  
  

Argentina Government International Bond

  

$3,250,000

  

7.125%, 6/28/2117

  $2,169,375 

4,875,000

  

6.875%, 4/22/2021

   4,104,750 

3,865,000

  

5.625%, 1/26/2022

   3,022,430 

3,000,000

  

4.625%, 1/11/2023

   2,220,000 

11,702,000

  

7.500%, 4/22/2026

   8,791,127 

5,000,000

  

6.875%, 1/26/2027

   3,607,550 

6,000,000

  

5.875%, 1/11/2028

   4,149,060 

7,973,407

  

8.280%, 12/31/2033

   5,908,374 

2,103,057

  

8.280%, 12/31/2033

   1,519,459 

7,963,066

  

3.750%, 12/31/2038a

   4,168,745 

3,671,000

  

7.625%, 4/22/2046

   2,551,345 

2,500,000

  

6.875%, 1/11/2048

   1,657,525 
    

 

 

 
  

Total

   43,869,740 
    

 

 

 

Bahrain (3.4%)

  
  

Bahrain Government International Bond

  

5,000,000

  

5.875%, 1/26/2021b

   5,082,100 

2,500,000

  

6.125%, 7/5/2022b

   2,583,210 

4,000,000

  

6.125%, 8/1/2023b

   4,167,832 

2,000,000

  

6.875%, 10/5/2025b

   2,180,000 

1,000,000

  

7.000%, 1/26/2026

   1,076,250 

3,500,000

  

7.000%, 1/26/2026b

   3,766,875 

2,000,000

  

7.000%, 10/12/2028b

   2,160,000 

2,500,000

  

6.750%, 9/20/2029b

   2,650,000 

3,000,000

  

7.500%, 9/20/2047b

   3,196,500 

1,000,000

  

7.500%, 9/20/2047

   1,065,500 
    

 

 

 
  

Total

   27,928,267 
    

 

 

 

Brazil (4.0%)

  
  

Brazil Government International Bond

  

4,800,000

  

2.625%, 1/5/2023

   4,648,848 

6,911,000

  

6.000%, 4/7/2026c

   7,618,479 

3,000,000

  

4.625%, 1/13/2028c

   3,010,500 

2,000,000

  

4.500%, 5/30/2029

   1,948,000 

2,000,000

  

8.250%, 1/20/2034

   2,540,000 

5,005,000

  

7.125%, 1/20/2037

   5,855,850 

5,500,000

  

5.000%, 1/27/2045

   4,998,125 

2,000,000

  

5.625%, 2/21/2047

   1,960,000 
    

 

 

 
  

Total

   32,579,802 
    

 

 

 

Cayman Islands (2.3%)

  
  

Dubai DOF Sukuk, Ltd.

  

2,000,000

  

6.450%, 5/2/2022

   2,168,200 

2,000,000

  

3.875%, 1/30/2023

   2,010,000 
  

KSA Sukuk, Ltd.

  

7,000,000

  

2.894%, 4/20/2022b

   6,982,500 

2,500,000

  

3.628%, 4/20/2027b

   2,515,750 
  

RAK Capital

  

2,000,000

  

3.094%, 3/31/2025

   1,939,520 
  

Sharjah Sukuk, Ltd.

  

2,000,000

  

3.839%, 1/27/2021

   2,012,500 
    

 

 

 
  

Total

   17,628,470 
    

 

 

 

Colombia (4.4%)

  
  

Colombia Government International Bond

  

3,870,000

  

4.375%, 7/12/2021

   3,971,587 

5,000,000

  

2.625%, 3/15/2023

   4,900,000 

1,910,000

  

4.000%, 2/26/2024

   1,966,345 

Principal
Amount

  

Long-Term Fixed Income (96.6%)

  Value 

Colombia (4.4%) - continued

  
$4,875,000  

3.875%, 4/25/2027

  $4,944,322 
200,000  

4.500%, 3/15/2029

   211,000 
4,000,000  

7.375%, 9/18/2037

   5,210,000 
3,000,000  

6.125%, 1/18/2041

   3,528,750 
7,705,000  

5.625%, 2/26/2044

   8,648,862 
2,000,000  

5.200%, 5/15/2049

   2,140,000 
    

 

 

 
  

Total

   35,520,866 
    

 

 

 

Croatia (1.6%)

  
  

Croatia Government International Bond

  
2,000,000  

6.625%, 7/14/2020b

   2,081,320 
4,500,000  

6.375%, 3/24/2021b

   4,764,600 
2,000,000  

5.500%, 4/4/2023b

   2,165,080 
3,021,000  

6.000%, 1/26/2024b,c

   3,381,188 
    

 

 

 
  

Total

   12,392,188 
    

 

 

 

Dominican Republic (2.9%)

  
  

Dominican Republic Government International Bond

  
2,000,000  

7.500%, 5/6/2021b

   2,068,020 
1,500,000  

6.600%, 1/28/2024b

   1,621,500 
3,500,000  

5.500%, 1/27/2025b

   3,613,750 
3,000,000  

6.875%, 1/29/2026b

   3,315,000 
2,000,000  

5.950%, 1/25/2027b

   2,107,500 
1,000,000  

6.000%, 7/19/2028b

   1,053,750 
5,000,000  

7.450%, 4/30/2044b

   5,656,250 
2,000,000  

6.850%, 1/27/2045b

   2,142,500 
1,000,000  

6.500%, 2/15/2048b

   1,038,510 
    

 

 

 
  

Total

   22,616,780 
    

 

 

 

Egypt (2.9%)

  
  

Egypt Government International Bond

  
4,000,000  

6.125%, 1/31/2022

   4,042,456 
4,000,000  

5.875%, 6/11/2025

   3,914,240 
3,000,000  

7.500%, 1/31/2027

   3,090,780 
4,000,000  

7.600%, 3/1/2029

   4,030,800 
5,000,000  

8.500%, 1/31/2047

   5,082,150 
3,000,000  

7.903%, 2/21/2048

   2,895,516 
    

 

 

 
  

Total

   23,055,942 
    

 

 

 

Hungary (1.7%)

  
  

Hungary Government International Bond

  
2,500,000  

6.375%, 3/29/2021

   2,658,800 
5,950,000  

5.750%, 11/22/2023

   6,596,586 
2,000,000  

5.375%, 3/25/2024

   2,198,952 
1,500,000  

7.625%, 3/29/2041

   2,254,200 
    

 

 

 
  

Total

   13,708,538 
    

 

 

 

Indonesia (8.9%)

  
  

Indonesia Government International Bond

  
4,650,000  

3.750%, 4/25/2022b

   4,721,391 
4,000,000  

3.375%, 4/15/2023b

   4,013,416 
6,197,000  

5.875%, 1/15/2024b

   6,854,644 
575,000  

4.125%, 1/15/2025b

   592,566 
6,100,000  

4.750%, 1/8/2026b

   6,496,372 
5,000,000  

8.500%, 10/12/2035b

   7,195,875 
2,000,000  

6.625%, 2/17/2037b

   2,485,962 
2,000,000  

7.750%, 1/17/2038b

   2,765,820 
3,226,000  

6.750%, 1/15/2044b

   4,176,996 
 

 

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

 7 


EMERGING MARKETS DEBT FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

 

Principal
Amount

  

Long-Term Fixed Income (96.6%)

  Value 

Indonesia (8.9%) - continued

  

$3,700,000

  

5.125%, 1/15/2045b

  $3,970,126 

4,000,000

  

5.950%, 1/8/2046b

   4,750,440 

1,200,000

  

5.250%, 1/8/2047b

   1,310,102 

1,500,000

  

4.350%, 1/11/2048

   1,476,438 
  

Perusahaan Penerbit SBSN Indonesia III

  

3,000,000

  

3.400%, 3/29/2021b

   3,031,110 

1,000,000

  

3.750%, 3/1/2023b

   1,013,200 

2,500,000

  

4.350%, 9/10/2024b

   2,588,750 

3,500,000

  

4.150%, 3/29/2027b

   3,556,875 

4,000,000

  

4.400%, 3/1/2028b

   4,118,000 

5,000,000

  

4.450%, 2/20/2029b

   5,162,500 
    

 

 

 
  

Total

   70,280,583 
    

 

 

 

Kuwait (1.6%)

  
  

Kuwait Government International Bond

  

5,500,000

  

2.750%, 3/20/2022b

   5,486,910 

7,000,000

  

3.500%, 3/20/2027b

   7,139,510 
    

 

 

 
  

Total

   12,626,420 
    

 

 

 

Mexico (6.7%)

  
  

Mexico Government International Bond

  

5,590,000

  

5.750%, 10/12/2110

   5,736,738 

5,220,000

  

4.000%, 10/2/2023

   5,363,550 

1,215,000

  

3.600%, 1/30/2025

   1,213,785 

3,000,000

  

4.125%, 1/21/2026

   3,051,000 

5,781,000

  

4.150%, 3/28/2027

   5,860,778 

5,085,000

  

3.750%, 1/11/2028

   4,991,945 

1,000,000

  

6.750%, 9/27/2034

   1,221,420 

5,878,000

  

6.050%, 1/11/2040

   6,737,658 

6,000,000

  

5.550%, 1/21/2045

   6,570,000 

5,250,000

  

4.600%, 1/23/2046

   5,055,750 

2,000,000

  

4.600%, 2/10/2048

   1,934,000 
  

Petroleos Mexicanos

  

2,850,000

  

6.375%, 2/4/2021

   2,949,465 

2,500,000

  

6.500%, 3/13/2027

   2,532,250 
    

 

 

 
  

Total

   53,218,339 
    

 

 

 

Netherlands (0.8%)

  
  

Petrobras Global Finance BV

  

3,000,000

  

5.299%, 1/27/2025

   3,078,000 

1,500,000

  

7.375%, 1/17/2027

   1,671,000 

2,000,000

  

5.750%, 2/1/2029

   2,005,000 
    

 

 

 
  

Total

   6,754,000 
    

 

 

 

Nigeria (2.0%)

  
  

Nigeria Government International Bond

  

2,000,000

  

6.375%, 7/12/2023

   2,060,400 

3,500,000

  

7.625%, 11/21/2025

   3,735,760 

3,500,000

  

7.143%, 2/23/2030

   3,483,060 

3,000,000

  

7.696%, 2/23/2038

   2,958,300 

3,000,000

  

7.625%, 11/28/2047

   2,873,580 
    

 

 

 
  

Total

   15,111,100 
    

 

 

 

Oman (3.1%)

  
  

Oman Government International

Bond

  

3,000,000

  

3.625%, 6/15/2021b

   2,932,500 

3,000,000

  

4.125%, 1/17/2023b

   2,899,200 

2,000,000

  

5.932%, 10/31/2025b

   2,030,000 

Principal
Amount

  

Long-Term Fixed Income (96.6%)

  Value 

Oman (3.1%) - continued

  

$5,000,000

  

4.750%, 6/15/2026b

  $4,625,000 

2,000,000

  

5.375%, 3/8/2027b

   1,880,000 

4,000,000

  

5.625%, 1/17/2028b

   3,800,744 

6,000,000

  

6.750%, 1/17/2048b

   5,437,080 
    

 

 

 
  

Total

   23,604,524 
    

 

 

 

Panama (2.6%)

  
  

Panama Government International Bond

  

2,000,000

  

4.500%, 4/16/2050

   2,088,400 

1,000,000

  

9.375%, 1/16/2023

   1,218,750 

3,000,000

  

3.750%, 3/16/2025

   3,085,530 

1,500,000

  

8.875%, 9/30/2027

   2,079,375 

2,000,000

  

3.875%, 3/17/2028

   2,071,020 

1,688,000

  

9.375%, 4/1/2029

   2,458,150 

5,079,000

  

6.700%, 1/26/2036

   6,602,700 
    

 

 

 
  

Total

   19,603,925 
    

 

 

 

Peru (1.8%)

  
  

Peru Government International Bond

  

3,650,000

  

5.625%, 11/18/2050

   4,662,875 

1,000,000

  

7.350%, 7/21/2025

   1,245,510 

5,000,000

  

8.750%, 11/21/2033

   7,750,000 
    

 

 

 
  

Total

   13,658,385 
    

 

 

 

Philippines (3.2%)

  
  

Philippines Government International Bond

  

3,000,000

  

4.200%, 1/21/2024

   3,172,335 

3,000,000

  

3.750%, 1/14/2029

   3,143,841 

5,025,000

  

7.750%, 1/14/2031

   7,050,728 

2,625,000

  

6.375%, 10/23/2034

   3,469,683 

1,000,000

  

5.000%, 1/13/2037

   1,176,071 

3,720,000

  

3.950%, 1/20/2040

   3,889,546 

4,000,000

  

3.700%, 3/1/2041c

   4,033,332 
    

 

 

 
  

Total

   25,935,536 
    

 

 

 

Poland (0.9%)

  
  

Poland Government International Bond

  

4,000,000

  

5.000%, 3/23/2022

   4,248,040 

3,000,000

  

4.000%, 1/22/2024

   3,150,000 
    

 

 

 
  

Total

   7,398,040 
    

 

 

 

Qatar (6.9%)

  
  

Qatar Government International Bond

  

6,000,000

  

4.500%, 1/20/2022b

   6,237,600 

3,000,000

  

3.875%, 4/23/2023b

   3,097,056 

6,000,000

  

3.375%, 3/14/2024b

   6,082,500 

3,000,000

  

3.250%, 6/2/2026b

   2,989,548 

8,500,000

  

4.500%, 4/23/2028b

   9,180,000 

1,000,000

  

4.000%, 3/14/2029b

   1,041,096 

2,000,000

  

9.750%, 6/15/2030b

   3,107,600 

2,000,000

  

5.750%, 1/20/2042b

   2,432,500 

9,750,000

  

5.103%, 4/23/2048b

   10,883,438 

8,000,000

  

4.817%, 3/14/2049b

   8,590,000 
    

 

 

 
  

Total

   53,641,338 
    

 

 

 
 

 

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

 8 


EMERGING MARKETS DEBT FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

Principal

Amount

  

Long-Term Fixed Income (96.6%)

  Value 

Russia (4.8%)

  
  

Russia Government International Bond

  

$2,000,000

  

4.500%, 4/4/2022b

  $2,067,900 

2,600,000

  

4.875%, 9/16/2023b

   2,743,000 

7,600,000

  

4.750%, 5/27/2026

   7,894,318 

4,000,000

  

4.250%, 6/23/2027b

   4,023,400 

2,000,000

  

12.750%, 6/24/2028b

   3,241,040 

1,125,000

  

7.500%, 3/31/2030b

   1,254,656 

1,000,000

  

5.100%, 3/28/2035b

   1,034,988 

6,600,000

  

5.625%, 4/4/2042b

   7,316,377 

8,000,000

  

5.250%, 6/23/2047b

   8,290,000 
    

 

 

 
  

Total

   37,865,679 
    

 

 

 

Saudi Arabia (7.5%)

  
  

Saudi Arabia Government International Bond

  

3,000,000

  

5.250%, 1/16/2050b

   3,255,312 

2,500,000

  

2.375%, 10/26/2021b

   2,463,475 

3,000,000

  

2.875%, 3/4/2023b

   2,976,660 

6,000,000

  

4.000%, 4/17/2025b

   6,210,000 

9,000,000

  

3.250%, 10/26/2026b

   8,832,546 

6,000,000

  

3.625%, 3/4/2028b

   6,003,720 

3,000,000

  

4.375%, 4/16/2029b

   3,146,730 

7,000,000

  

4.500%, 4/17/2030b

   7,376,320 

5,250,000

  

4.500%, 10/26/2046b

   5,177,550 

4,000,000

  

4.625%, 10/4/2047b

   4,019,440 

9,000,000

  

5.000%, 4/17/2049b

   9,510,732 
    

 

 

 
  

Total

   58,972,485 
    

 

 

 

South Africa (3.3%)

  
  

Eskom Holdings SOC, Ltd.

  

1,500,000

  

6.350%, 8/10/2028b

   1,558,224 
  

South Africa Government International Bond

  

4,125,000

  

5.875%, 5/30/2022

   4,341,563 

2,000,000

  

4.665%, 1/17/2024

   2,020,020 

4,500,000

  

5.875%, 9/16/2025

   4,743,063 

1,600,000

  

4.875%, 4/14/2026

   1,584,368 

1,500,000

  

4.850%, 9/27/2027

   1,460,331 

4,000,000

  

4.300%, 10/12/2028

   3,729,960 

500,000

  

5.875%, 6/22/2030

   510,641 

500,000

  

6.250%, 3/8/2041

   514,375 

5,200,000

  

5.650%, 9/27/2047

   4,872,421 
    

 

 

 
  

Total

   25,334,966 
    

 

 

 

Sri Lanka (1.9%)

  
  

Sri Lanka Government International Bond

  

1,500,000

  

6.250%, 10/4/2020b

   1,508,925 

1,500,000

  

5.750%, 1/18/2022b

   1,488,110 

1,500,000

  

5.875%, 7/25/2022b

   1,483,257 

1,000,000

  

5.750%, 4/18/2023b

   980,755 

2,000,000

  

6.850%, 3/14/2024b

   2,018,884 

2,000,000

  

6.850%, 11/3/2025b

   1,997,546 

1,500,000

  

6.200%, 5/11/2027b

   1,416,758 

1,000,000

  

6.750%, 4/18/2028b

   963,111 

2,000,000

  

7.850%, 3/14/2029b

   2,056,600 
    

 

 

 
  

Total

   13,913,946 
    

 

 

 

Turkey (7.9%)

  
  

Hazine Mustesarligi Varlik Kiralama AS

  

3,000,000

  

5.800%, 2/21/2022b

   2,930,916 

Principal

Amount

  

Long-Term Fixed Income (96.6%)

  Value 

Turkey (7.9%) - continued

  
  

Turkey Government International Bond

  

$2,750,000

  

7.000%, 6/5/2020

  $2,774,629 

2,500,000

  

5.625%, 3/30/2021

   2,463,680 

3,000,000

  

6.250%, 9/26/2022

   2,927,760 

5,000,000

  

7.250%, 12/23/2023c

   4,988,050 

8,000,000

  

5.750%, 3/22/2024

   7,484,800 

2,250,000

  

7.375%, 2/5/2025

   2,226,380 

3,000,000

  

4.250%, 4/14/2026

   2,494,020 

2,042,000

  

4.875%, 10/9/2026

   1,741,458 

4,300,000

  

6.000%, 3/25/2027

   3,870,430 

1,000,000

  

5.125%, 2/17/2028

   845,360 

4,000,000

  

6.125%, 10/24/2028

   3,584,520 

1,500,000

  

7.625%, 4/26/2029

   1,459,500 

2,500,000

  

8.000%, 2/14/2034

   2,503,250 

6,839,000

  

6.875%, 3/17/2036

   6,120,905 

5,935,000

  

6.750%, 5/30/2040

   5,190,573 

6,500,000

  

6.625%, 2/17/2045

   5,532,241 

3,000,000

  

5.750%, 5/11/2047

   2,351,250 
    

 

 

 
  

Total

   61,489,722 
    

 

 

 

United Arab Emirates (2.1%)

  
  

Abu Dhabi Government International Bond

  

3,000,000

  

2.500%, 10/11/2022b

   2,970,000 

3,000,000

  

3.125%, 5/3/2026b

   3,007,500 

5,500,000

  

3.125%, 10/11/2027b

   5,465,790 

4,000,000

  

4.125%, 10/11/2047b

   4,072,000 
  

Dubai Government International Bond

  

1,000,000

  

5.250%, 1/30/2043

   1,057,540 
    

 

 

 
  

Total

   16,572,830 
    

 

 

 

Uruguay (1.9%)

  
  

Uruguay Government International Bond

  

1,071,287

  

4.975%, 4/20/2055

   1,103,426 

9,000,000

  

5.100%, 6/18/2050

   9,450,000 

2,500,000

  

4.375%, 10/27/2027

   2,606,250 

2,040,312

  

4.375%, 1/23/2031

   2,125,005 
    

 

 

 
   Total  15,284,681 
    

 

 

 
  Total Long-Term Fixed Income
(cost $783,479,459)
   760,567,092 
    

 

 

 

Shares

  

Collateral Held for Securities Loaned (1.0%)

 

7,629,243

  

Thrivent Cash Management Trust

   7,629,243 
    

 

 

 
  Total Collateral Held for Securities Loaned
(cost $7,629,243)
   7,629,243 
    

 

 

 

Shares or
Principal
Amount

  

Short-Term Investments (7.2%)

 
  

Federal Home Loan Bank Discount Notes

  

19,290,000

  

2.300%, 5/1/2019d

   19,290,000 
 

 

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

 9 


EMERGING MARKETS DEBT FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

 

Shares or

Principal

Amount

  

Short-Term Investments (7.2%)

  Value 
  

Thrivent Core Short-Term Reserve Fund

  

3,712,552

  

2.690%

  $37,125,522 
    

 

 

 
  Total Short-Term Investments
(cost $56,415,522)
   56,415,522 
    

 

 

 
  Total Investments
(cost $847,524,224) 104.8%
  $824,611,857 
    

 

 

 
  Other Assets and Liabilities, Net (4.8%)   (37,529,094) 
    

 

 

 
  

Total Net Assets 100.0%

  $787,082,763 
    

 

 

 

 

a

Denotes step coupon securities. Step coupon securities pay an initial coupon rate for the first period and then different coupon rates for following periods. The rate shown is as of April 30, 2019.

b

Denotes securities sold under Rule 144A of the Securities Act of 1933, which exempts them from registration. These securities may be resold to other dealers in the program or to other qualified institutional buyers. As of April 30, 2019, the value of these investments was $351,832,384 or 44.7% of total net assets.

c

All or a portion of the security is on loan.

d

The interest rate shown reflects the yield, coupon rate or the discount rate at the date of purchase.

The following table presents the total amount of securities loaned with continuous maturity, by type, offset by the gross payable upon return of collateral for securities loaned by Thrivent Core Emerging Markets Debt Fund as of April 30, 2019:

Securities Lending Transactions

 

Long-Term Fixed Income

  $7,337,507 
  

 

 

 

Total lending

  $7,337,507 

Gross amount payable upon return of collateral for securities loaned

  $7,629,243 
  

 

 

 

Net amounts due to counterparty

  $291,736 
  

 

 

 

Unrealized Appreciation (Depreciation)

Gross unrealized appreciation and depreciation of investments of the portfolio as a whole (including derivatives), based on cost for federal income tax purposes, were as follows:

 

Gross unrealized appreciation

  $9,909,440 

Gross unrealized depreciation

   (33,137,060
  

 

 

 

Net unrealized appreciation (depreciation)

  $(23,227,620

Cost (includes notional principal amount of derivatives, if any) for federal income tax purposes

  $847,839,477 
 

 

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

 10 


EMERGING MARKETS DEBT FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

Fair Valuation Measurements

The following table is a summary of the inputs used, as of April 30, 2019, in valuing Emerging Markets Debt Fund’s assets carried at fair value.

 

Investments in Securities

  Total   Level 1   Level 2   Level 3 

Long-Term Fixed Income

        

Energy

   12,235,715        12,235,715     

Foreign Government

   746,773,153        746,773,153     

Utilities

   1,558,224        1,558,224     

Short-Term Investments

   19,290,000        19,290,000     
  

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal Investments in Securities

  $779,857,092   $   $779,857,092   $ 
  

 

 

   

 

 

   

 

 

   

 

 

 

Other Investments *

  Total             

Affiliated Short-Term Investments

   37,125,522       

Collateral Held for Securities Loaned

   7,629,243       
  

 

 

       

Subtotal Other Investments

  $44,754,765       
  

 

 

       

Total Investments at Value

  $824,611,857       
  

 

 

       

 

*

Certain investments are measured at fair value using a net asset value per share that is not publicly available (practical expedient). According to disclosure requirements of Accounting Standards Codification (ASC) 820, Fair Value Measurement, securities valued using the practical expedient are not classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities.

There were no significant transfers between Levels during the period ended April 30, 2019. Transfers between Levels are identified as of the end of the period.

Investment in Affiliates

Affiliated issuers, as defined under the Investment Company Act of 1940, include those in which the Fund’s holdings of an issuer represent 5% or more of the outstanding voting securities of an issuer, any affiliated mutual fund, or a company which is under common ownership or control with the Fund. The Fund owns shares of Thrivent Cash Management Trust for the purpose of securities lending and Thrivent Core Short-Term Reserve Fund, a series of Thrivent Core Funds, primarily to serve as a cash sweep vehicle for the Fund. Thrivent Cash Management Trust and Thrivent Core Funds are established solely for investment by Thrivent entities.

A summary of transactions (in thousands; values shown as zero are less than $500) for the fiscal year to date, in Emerging Markets Debt Fund, is as follows:

 

Fund

  Value
10/31/2018
   Gross
Purchases
   Gross
Sales
   Value
4/30/2019
   Shares Held at
4/30/2019
   % of Net
Assets
4/30/2019
 

Affiliated Short-Term Investments

            

Core Short-Term Reserve, 2.690%

  $12,270   $76,760   $51,904   $37,126    3,713    4.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Affiliated Short-Term Investments

   12,270        37,126      4.7 
  

 

 

       

 

 

     

 

 

 

Collateral Held for Securities Loaned

            

Cash Management Trust- Collateral Investment

   4,447    40,277    37,095    7,629    7,629    1.0 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Collateral Held for Securities Loaned

   4,447        7,629      1.0 
  

 

 

       

 

 

     

 

 

 

Total Value

  $16,717       $44,755     
  

 

 

       

 

 

     

 

Fund

  Net Realized
Gain/(Loss)
   Change in
Unrealized
Appreciation/
(Depreciation)
   Distributions of
Realized Capital
Gains
   Income Earned
11/1/2018
- 4/30/2019
 

Affiliated Short-Term Investments

      �� 

Core Short-Term Reserve, 2.690%

  $   $   $   $93 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Income from Affiliated Investments

        $93 
        

 

 

 

Collateral Held for Securities Loaned

        

Cash Management Trust- Collateral Investment

               8 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Affiliated Income from Securities Loaned, Net

        $8 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $   $   $   
  

 

 

   

 

 

   

 

 

   

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

11


INTERNATIONAL EQUITY FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

Shares

  

Common Stock (99.1%)

  Value 

Australia (6.7%)

  

992,187

  

AGL Energy, Ltd.

  $15,565,777 

389,260

  

BHP Group, Ltd.

   10,300,733 

419,135

  

Computershare, Ltd.

   5,272,824 

1,179,302

  

FlexiGroup, Ltd.

   1,161,500 

540,421

  

GWA Group, Ltd.

   1,283,524 

3,558,313

  

Medibank Private, Ltd.

   7,171,300 

4,737,867

  

Mirvac Group

   9,484,688 

389,898

  

Sandfire Resources NL

   1,939,360 

154,996

  

Scentre Group

   418,101 

318,843

  

Seven West Media, Ltd.a

   127,248 

123,038

  

Super Retail Group, Ltd.

   751,512 

3,003,166

  

Telstra Corporation, Ltd.

   7,153,075 

818,317

  

Vicinity Centres

   1,467,517 
    

 

 

 
  

Total

   62,097,159 
    

 

 

 

Canada (9.7%)

  

110,220

  

Bank of Montreal

   8,706,039 

278,693

  

CGI, Inc.a

   20,059,988 

66,041

  

Choice Properties REIT

   672,389 

673,846

  

CI Financial Corporation

   9,692,478 

274,515

  

Empire Company, Ltd.

   6,106,253 

140,382

  

Genworth MI Canada, Inc.b

   4,362,247 

64,718

  

Gildan Activewear, Inc.

   2,386,407 

98,541

  

Granite REIT

   4,486,091 

43,085

  

H&R REIT

   736,147 

32,611

  

Laurentian Bank of Canada

   1,033,075 

106,866

  

Magna International, Inc.

   5,946,024 

663,501

  

Manulife Financial Corporation

   12,218,086 

99,163

  

Methanex Corporation

   5,446,032 

59,927

  

National Bank of Canada

   2,854,774 

111,226

  

Quebecor, Inc.

   2,773,801 

51,632

  

SmartCentres Real Estate Investment Trust

   1,305,734 

47,757

  

Transcontinental, Inc.

   573,925 
    

 

 

 
  

Total

   89,359,490 
    

 

 

 

Denmark (4.3%)

  

56,950

  

Carlsberg AS

   7,363,681 

32,009

  

GN Store Nord AS

   1,640,630 

529,751

  

Novo Nordisk AS

   25,954,914 

4,088

  

Rockwool International AS

   1,093,739 

62,005

  

Topdanmark AS

   3,345,479 
    

 

 

 
  

Total

   39,398,443 
    

 

 

 

Finland (1.4%)

  

464,488

  

UPM-Kymmene Oyj

   13,114,785 
    

 

 

 
  

Total

   13,114,785 
    

 

 

 

France (5.1%)

  

20,417

  

Bureau Veritas SA

   517,546 

120,720

  

Capgemini SA

   14,649,949 

82,740

  

Cie Generale des Etablissements Michelin

   10,699,191 

303,409

  

CNP Assurancesb

   7,166,773 

9,338

  

Gaztransport Et Technigaz SA

   845,002 

23,947

  

Ipsos SA

   694,614 

229,857

  

Klepierre SA

   8,167,776 

6,242

  

LNA Sante

   322,399 

7,665

  

L’Oreal SA

   2,108,286 

22,123

  

Peugeot SA

   580,043 
    

 

 

 
  

Total

   45,751,579 
    

 

 

 

Shares

  

Common Stock (99.1%)

  Value 

Germany (1.6%)

  

83,928

  

Aareal Bank AG

  $2,935,657 

29,012

  

Allianz SE

   7,012,638 

22,413

  

Deutsche EuroShop AG

   673,582 

172,299

  

Deutsche Pfandbriefbank AGc

   2,405,803 

13,568

  

Fuchs Petrolub SE

   591,605 

5,958

  

Jenoptik AG

   235,811 
    

 

 

 
  

Total

   13,855,096 
    

 

 

 

Hong Kong (0.8%)

  

981,000

  

Hysan Development Company, Ltd.

   5,498,242 

315,000

  

Road King Infrastructure, Ltd.

   715,317 

51,500

  

Swire Pacific, Ltd.

   652,169 
    

 

 

 
  

Total

   6,865,728 
    

 

 

 

Ireland (<0.1%)

  

14,068

  

Glanbia plc

   258,613 
    

 

 

 
  

Total

   258,613 
    

 

 

 

Italy (0.6%)

  

48,078

  

Amplifon SPA

   924,922 

470,680

  

Banca Monte dei Paschi di Siena SPAa,b

   715,238 

196,943

  

Finecobank Banca Fineco SPA

   2,594,129 

14,217

  

Recordati SPA

   574,479 
    

 

 

 
  

Total

   4,808,768 
    

 

 

 

Japan (25.8%)

  

31,400

  

AOKI Holdings, Inc.

   328,165 

27,200

  

Aoyama Trading Company, Ltd.

   597,448 

44,600

  

Arcs Company, Ltd.

   904,160 

35,900

  

Autobacs Seven Company, Ltd.

   626,096 

87,900

  

Benesse Holdings, Inc.

   2,430,247 

39,300

  

Bridgestone Corporation

   1,559,047 

581,500

  

Canon, Inc.

   16,135,507 

39,900

  

Chiyoda Company, Ltd.

   632,283 

852,500

  

Citizen Watch Company, Ltd.

   4,806,590 

92,600

  

Daito Trust Construction Company, Ltd.

   12,399,461 

282,400

  

Denso Corporation

   12,339,477 

17,500

  

Exedy Corporation

   401,016 

104,400

  

Hino Motors, Ltd.

   989,762 

57,200

  

Hitachi Zosen Corporation

   177,289 

44,400

  

Hokuetsu Corporation

   242,202 

68,400

  

Inaba Denki Sangyo Company, Ltd.

   2,786,495 

1,005,700

  

Japan Tobacco, Inc.

   23,239,336 

330,600

  

JFE Holdings, Inc.

   5,688,916 

254,400

  

JSR Corporation

   3,881,768 

415,100

  

KDDI Corporation

   9,567,037 

173,000

  

Kyoei Steel, Ltd.

   2,874,554 

19,200

  

KYORIN Holdings, Inc.

   360,811 

29,600

  

Lintec Corporation

   639,266 

93,800

  

Marubeni Corporation

   672,133 

14,400

  

Ministop Company, Ltd.

   226,985 

473,700

  

Mitsubishi Gas Chemical Company, Inc.

   7,111,583 

52,500

  

Mitsuboshi Belting, Ltd.

   997,396 

58,500

  

Mitsui & Company, Ltd.

   946,214 

90,300

  

NEC Networks & System Integration Corporation

   2,175,345 

281,500

  

NHK Spring Company, Ltd.

   2,535,598 

145,100

  

Nippon Kayaku Company, Ltd.

   1,705,138 

570,900

  

Nippon Steel Corporation

   10,211,567 

1,973,800

  

Nissan Motor Company, Ltd.

   15,845,753 

168,700

  

Nitto Kogyo Corporation

   3,312,028 
 

 

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

 12 


INTERNATIONAL EQUITY FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

Shares

  

Common Stock (99.1%)

  Value 

Japan (25.8%) - continued

  

40,600

  

NTT DOCOMO, INC.

  $881,653 

37,700

  

Onward Holdings Company, Ltd.

   207,986 

27,600

  

Plenus Company, Ltd.

   455,936 

55,900

  

Resona Holdings, Inc.

   237,302 

34,400

  

Ryoyo Electro Corporation

   529,640 

74,300

  

Sangetsu Company, Ltd.

   1,392,759 

9,600

  

Sanyo Special Steel Company, Ltd.

   192,502 

1,058,000

  

Sekisui House, Ltd.

   17,058,434 

41,000

  

Senshu Ikeda Holdings, Inc.

   101,876 

20,300

  

SHIMAMURA Company, Ltd.

   1,513,650 

387,700

  

Shinko Electric Industries Company, Ltd.

   3,421,535 

125,100

  

Sugi Holdings Company, Ltd.

   6,326,994 

519,700

  

Sumitomo Corporation

   7,448,769 

898,200

  

Sumitomo Electric Industries, Ltd.

   11,951,173 

641,500

  

Sumitomo Rubber Industries, Ltd.

   7,888,101 

187,300

  

Sundrug Company, Ltd.

   5,021,611 

25,500

  

Taikisha, Ltd.

   770,649 

25,700

  

Taiyo Holdings Company, Ltd.

   905,271 

14,600

  

Takara Standard Company, Ltd.

   222,247 

31,900

  

Teijin, Ltd.

   548,748 

119,800

  

Toagosei Company, Ltd.

   1,307,812 

69,300

  

Toppan Forms Company, Ltd.

   633,780 

342,000

  

Toyoda Gosei Company, Ltd.

   7,119,489 

8,400

  

TS Tech Company, Ltd.

   252,273 

54,400

  

Tsubakimoto Chain Company

   2,027,742 

20,200

  

TSURUHA Holdings, Inc.

   1,721,562 

246,800

  

TV Asahi Holdings Corporation

   4,355,461 

30,700

  

United Arrows, Ltd.

   969,719 

996,300

  

Yahoo Japan Corporation

   2,659,593 

32,200

  

Yuasa Trading Company, Ltd.

   918,574 
    

 

 

 
  

Total

   238,389,514 
    

 

 

 

Netherlands (5.4%)

  

147,726

  

Euronext NVc

   10,264,351 

58,281

  

ForFarmers BV

   498,317 

344,492

  

Koninklijke Ahold Delhaize NV

   8,302,839 

77,175

  

Koninklijke DSM NV

   8,826,664 

89,073

  

Koninklijke Philips NV

   3,825,142 

248,648

  

Unilever NV

   15,044,402 

55,845

  

Wolters Kluwer NV

   3,897,856 
    

 

 

 
  

Total

   50,659,571 
    

 

 

 

New Zealand (<0.1%)

  

132,147

  

Contact Energy, Ltd.

   593,266 
    

 

 

 
  

Total

   593,266 
    

 

 

 

Norway (2.1%)

  

258,828

  

DnB ASAa

   4,977,058 

743,531

  

Telenor ASAb

   14,946,361 
    

 

 

 
  

Total

   19,923,419 
    

 

 

 

Singapore (0.1%)

  

733,000

  

Wing Tai Holdings, Ltd.

   1,106,170 
    

 

 

 
  

Total

   1,106,170 
    

 

 

 

Spain (4.8%)

  

240,313

  

ACS Actividades de Construccion y Servicios, SA

   11,051,126 

142,755

  

Amadeus IT Holding SA

   11,377,142 

265,273

  

Bankinter SA

   2,120,388 

43,098

  

CIA De Distribucion Integral

   1,022,500 

456,042

  

Enagas SA

   13,008,802 

Shares

  

Common Stock (99.1%)

  Value 

Spain (4.8%) - continued

  

861,907

  

Mediaset Espana Comunicacion SA

  $6,684,210 
    

 

 

 
  

Total

   45,264,168 
    

 

 

 

Sweden (5.3%)

  

4,543

  

AB Industrivarden

   102,239 

396,819

  

Atlas Copco AB, Class A

   12,386,430 

354,114

  

Atlas Copco AB, Class B

   10,085,939 

11,416

  

Boliden ABa

   339,739 

24,386

  

Castellum AB

   438,447 

176,687

  

Granges AB

   1,918,376 

126,669

  

Hexpol AB

   989,416 

25,082

  

Investor AB

   1,196,204 

89,408

�� 

Nobina ABc

   574,060 

268,174

  

Sandvik AB

   4,966,149 

385,466

  

SKF ABb

   7,155,011 

206,439

  

Swedish Match AB

   10,065,884 
    

 

 

 
  

Total

   50,217,894 
    

 

 

 

Switzerland (6.5%)

  

284,706

  

Novartis AG

   23,328,838 

54,780

  

Pargesa Holding SA

   4,305,102 

84,310

  

Roche Holding AG

   22,246,320 

45,980

  

Schindler Holding AG, Participation Certificate

   9,937,428 
    

 

 

 
  

Total

   59,817,688 
    

 

 

 

United Kingdom (18.9%)

  

1,391,649

  

Auto Trader Group plcc

   10,287,588 

412,612

  

Barratt Developments plc

   3,245,958 

165,132

  

Berkeley Group Holdings plc

   8,100,833 

673,071

  

BHP Group plc

   15,887,579 

20,051

  

Bovis Homes Group plc

   290,715 

414,676

  

Bunzl plc

   12,507,099 

23,735

  

Burberry Group plc

   625,585 

150,521

  

Carnival plc

   7,979,825 

25,730

  

Compass Group plc

   585,458 

83,719

  

Countryside Properties plcc

   370,834 

493,127

  

Direct Line Insurance Group plc

   2,121,953 

517,955

  

Halma plc

   12,187,333 

365,818

  

Imperial Brands plc

   11,639,678 

87,203

  

Inchcape plc

   700,103 

2,224,333

  

KCOM Group plc

   2,839,623 

15,490,128

  

Lloyds TSB Group plc

   12,668,387 

513,994

  

Marks and Spencer Group plc

   1,917,334 

58,838

  

Meggitt plc

   418,681 

432,521

  

Moneysupermarket.com Group plc

   2,054,434 

210,004

  

National Express Group plc

   1,125,506 

64,015

  

Northgate plc

   307,190 

419,682

  

PageGroup plc

   2,950,468 

36,532

  

Paragon Banking Group plc

   218,803 

362,286

  

Redrow plc

   2,916,138 

574,836

  

RELX plc

   13,207,237 

60,991

  

Rightmove plc

   431,274 

28,051

  

Royal Dutch Shell plc, Class A

   893,746 

607,855

  

Royal Dutch Shell plc, Class B

   19,617,554 

27,748

  

Spirax-Sarco Engineering plc

   2,991,729 

1,266,805

  

Taylor Wimpey plc

   3,003,357 

362,699

  

Unilever plc

   21,985,066 

48,707

  

WH Smith plc

   1,303,121 
    

 

 

 
  

Total

   177,380,189 
    

 

 

 
 

 

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

 13 


INTERNATIONAL EQUITY FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

Shares

  

Common Stock (99.1%)

  Value 

United States (<0.1%)

  

8,264

  

Kulicke and Soffa Industries, Inc.

  $192,303 
    

 

 

 
  

Total

   192,303 
    

 

 

 
  Total Common Stock
(cost $909,222,936)
   919,053,843 
    

 

 

 

Shares

  

Collateral Held for Securities Loaned
(3.6%)

    

33,348,904

  

Thrivent Cash Management Trust

   33,348,904 
    

 

 

 
  

Total Collateral Held for

Securities Loaned
(cost $33,348,904)

   33,348,904 
    

 

 

 

Shares

  

Short-Term Investments (0.3%)

    
  

Thrivent Core Short-Term Reserve Fund

  

227,372

  

2.690%

   2,273,718 
    

 

 

 
  Total Short-Term Investments (cost $2,273,718)   2,273,718 
    

 

 

 
  Total Investments
(cost $944,845,558) 103.0%
  $954,676,465 
    

 

 

 
  

Other Assets and Liabilities,

Net (3.0%)

   (27,567,275) 
    

 

 

 
  

Total Net Assets 100.0%

  $927,109,190 
    

 

 

 

 

a

Non-income producing security.

b

All or a portion of the security is on loan.

c

Denotes securities sold under Rule 144A of the Securities Act of 1933, which exempts them from registration. These securities may be resold to other dealers in the program or to other qualified institutional buyers. As of April 30, 2019, the value of these investments was $23,902,636 or 2.6% of total net assets.

The following table presents the total amount of securities loaned with continuous maturity, by type, offset by the gross payable upon return of collateral for securities loaned by Thrivent Core International Equity Fund as of April 30, 2019:

Securities Lending Transactions

 

Common Stock

  $27,512,388 
  

 

 

 

Total lending

  $27,512,388 

Gross amount payable upon return of collateral for securities loaned

  $33,348,904 
  

 

 

 

Net amounts due to counterparty

  $5,836,516 
  

 

 

 

 

Definitions:   

REIT -

 Real Estate Investment Trust is a company that buys,develops, manages and/or sells real estate assets.

Unrealized Appreciation (Depreciation)

Gross unrealized appreciation and depreciation of investments of the portfolio as a whole (including derivatives), based on cost for federal income tax purposes, were as follows:

 

Gross unrealized appreciation

  $41,917,349 

Gross unrealized depreciation

   (33,541,018
  

 

 

 

Net unrealized appreciation (depreciation)

  $8,376,331 

Cost (includes notional principal amount of derivatives, if any) for federal income tax purposes

  $946,300,134 
 

 

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

14


INTERNATIONAL EQUITY FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

Fair Valuation Measurements

The following table is a summary of the inputs used, as of April 30, 2019, in valuing International Equity Fund’s assets carried at fair value.

 

Investments in Securities

  Total   Level 1   Level 2   Level 3 

Common Stock

        

Communications Services

   61,866,000        61,866,000     

Consumer Discretionary

   149,111,612    5,946,024    143,165,588     

Consumer Staples

   120,813,667        120,813,667     

Energy

   21,356,302        21,356,302     

Financials

   111,688,879        111,688,879     

Health Care

   75,353,313        75,353,313     

Industrials

   119,654,082        119,654,082     

Information Technology

   86,237,377    192,303    86,045,074     

Materials

   94,114,868    5,446,032    88,668,836     

Real Estate

   49,689,898        49,689,898     

Utilities

   29,167,845        29,167,845     
  

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal Investments in Securities

  $919,053,843   $11,584,359   $907,469,484   $ 
  

 

 

   

 

 

   

 

 

   

 

 

 

Other Investments *

  Total             

Affiliated Short-Term Investments

   2,273,718       

Collateral Held for Securities Loaned

   33,348,904       
  

 

 

       

Subtotal Other Investments

  $35,622,622       
  

 

 

       

Total Investments at Value

  $954,676,465       
  

 

 

       

 

*

Certain investments are measured at fair value using a net asset value per share that is not publicly available (practical expedient). According to disclosure requirements of Accounting Standards Codification (ASC) 820, Fair Value Measurement, securities valued using the practical expedient are not classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities.

There were no significant transfers between Levels during the period ended April 30, 2019. Transfers between Levels are identified as of the end of the period.

Investment in Affiliates

Affiliated issuers, as defined under the Investment Company Act of 1940, include those in which the Fund’s holdings of an issuer represent 5% or more of the outstanding voting securities of an issuer, any affiliated mutual fund, or a company which is under common ownership or control with the Fund. The Fund owns shares of Thrivent Cash Management Trust for the purpose of securities lending and Thrivent Core Short-Term Reserve Fund, a series of Thrivent Core Funds, primarily to serve as a cash sweep vehicle for the Fund. Thrivent Cash Management Trust and Thrivent Core Funds are established solely for investment by Thrivent entities.

A summary of transactions (in thousands; values shown as zero are less than $500) for the fiscal year to date, in International Equity Fund, is as follows:

 

Fund

  Value
10/31/2018
   Gross
Purchases
   Gross
Sales
   Value
4/30/2019
   Shares Held at
4/30/2019
   % of Net
Assets
4/30/2019
 

Affiliated Short-Term Investments

            

Core Short-Term Reserve, 2.690%

  $170   $71,283   $69,179   $2,274    227    0.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Affiliated Short-Term Investments

   170        2,274      0.3 
  

 

 

       

 

 

     

 

 

 

Collateral Held for Securities Loaned

            

Cash Management Trust- Collateral Investment

   28,504    98,912    94,067    33,349    33,349    3.6 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Collateral Held for Securities Loaned

   28,504        33,349      3.6 
  

 

 

       

 

 

     

 

 

 

Total Value

  $28,674       $35,623     
  

 

 

       

 

 

     

 

Portfolio

  Net Realized
Gain/(Loss)
   Change in
Unrealized
Appreciation/
(Depreciation)
   Distributions of
Realized Capital
Gains
   Income Earned
11/1/2018

- 4/30/2019
 

Affiliated Short-Term Investments

        

Core Short-Term Reserve, 2.690%

  $   $       $30 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Income from Affiliated Investments

        $30 
        

 

 

 

Collateral Held for Securities Loaned

        

Cash Management Trust- Collateral Investment

               135 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Affiliated Income from Securities Loaned, Net

        $135 
        

 

 

 

Total Value

  $   $   $   
  

 

 

   

 

 

   

 

 

   

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

15


LOW VOLATILITY EQUITY FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

 

Shares

  

Common Stock (99.7%)

  Value 

Communications Services (2.6%)

  

172,019

  

AT&T, Inc.

  $5,325,708 

6,582

  

John Wiley and Sons, Inc.

   303,957 

281,295

  

Verizon Communications, Inc.

   16,087,261 

30,896

  

Walt Disney Company

   4,231,825 
    

 

 

 
  

Total

   25,948,751 
    

 

 

 

Consumer Discretionary (6.3%)

  

3,084

  

AutoZone, Inc.a

   3,171,308 

816

  

Booking Holdings, Inc.a

   1,513,672 

7,373

  

Genuine Parts Company

   756,027 

99,854

  

Home Depot, Inc.

   20,340,260 

103,540

  

McDonald’s Corporation

   20,456,398 

78,185

  

Ross Stores, Inc.

   7,635,547 

147,273

  

TJX Companies, Inc.

   8,082,342 
    

 

 

 
  

Total

   61,955,554 
    

 

 

 

Consumer Staples (14.3%)

  

267,371

  

Altria Group, Inc.

   14,526,266 

379,842

  

Coca-Cola Company

   18,635,048 

271,221

  

Colgate-Palmolive Company

   19,742,176 

2,068

  

Hershey Company

   258,190 

15,331

  

Kimberly-Clark Corporation

   1,968,194 

408,702

  

Mondelez International, Inc.

   20,782,497 

80,016

  

Monster Beverage Corporationa

   4,768,954 

167,842

  

PepsiCo, Inc.

   21,492,168 

154,255

  

Philip Morris International, Inc.

   13,352,313 

69,262

  

Procter & Gamble Company

   7,375,018 

179,590

  

Wal-Mart Stores, Inc.

   18,469,036 
    

 

 

 
  

Total

   141,369,860 
    

 

 

 

Financials (15.3%)

  

369,286

  

Aflac, Inc.

   18,604,629 

3,692

  

Alleghany Corporationa

   2,425,201 

186,888

  

Allstate Corporation

   18,513,125 

32,505

  

American Express Company

   3,810,561 

167,787

  

American Financial Group, Inc.

   17,370,988 

335,859

  

Annaly Capital Management, Inc.

   3,388,817 

60,157

  

Aon plc

   10,836,682 

121,569

  

Arthur J. Gallagher & Company

   10,165,600 

74,432

  

Berkshire Hathaway, Inc.a

   16,130,159 

48,078

  

Cincinnati Financial Corporation

   4,624,142 

32,075

  

Discover Financial Services

   2,613,792 

43,538

  

First American Financial Corporation

   2,484,278 

214,458

  

Hartford Financial Services Group, Inc.

   11,218,298 

20,042

  

Intercontinental Exchange, Inc.

   1,630,417 

9,384

  

Markel Corporationa

   10,055,050 

139,499

  

Marsh & McLennan Companies, Inc.

   13,153,361 

22,261

  

Reinsurance Group of America, Inc.

   3,372,764 

11,313

  

Torchmark Corporation

   991,697 
    

 

 

 
  

Total

   151,389,561 
    

 

 

 

Health Care (16.2%)

  

52,314

  

Abbott Laboratories

   4,162,102 

7,112

  

Agilent Technologies, Inc.

   558,292 

19,462

  

Amgen, Inc.

   3,489,926 

198,142

  

Baxter International, Inc.

   15,118,235 

42,786

  

Bristol-Myers Squibb Company

   1,986,554 

23,260

  

Cigna Holding Company

   3,694,618 

15,437

  

Cooper Companies, Inc.

   4,475,495 

154,772

  

Danaher Corporation

   20,498,004 

18,478

  

Eli Lilly and Company

   2,162,665 

37,290

  

Humana, Inc.

   9,524,239 

140,402

  

Johnson & Johnson

   19,824,762 

Shares

  

Common Stock (99.7%)

  Value 

Health Care (16.2%) - continued

  

126,416

  

Medtronic plc

  $11,227,005 

74,205

  

Merck & Company, Inc.

   5,840,675 

456,083

  

Pfizer, Inc.

   18,521,531 

9,542

  

Stryker Corporation

   1,802,579 

36,588

  

Thermo Fisher Scientific, Inc.

   10,151,341 

85,524

  

UnitedHealth Group, Inc.

   19,933,079 

50,702

  

Varian Medical Systems, Inc.a

   6,904,091 
    

 

 

 
  

Total

   159,875,193 
    

 

 

 

Industrials (11.0%)

  

140,699

  

AMETEK, Inc.

   12,405,431 

24,724

  

EMCOR Group, Inc.

   2,080,278 

59,973

  

General Dynamics Corporation

   10,718,375 

108,110

  

Honeywell International, Inc.

   18,771,139 

37,291

  

Illinois Tool Works, Inc.

   5,803,598 

51,844

  

Lockheed Martin Corporation

   17,281,161 

35,687

  

Northrop Grumman Corporation

   10,346,018 

22,012

  

Raytheon Company

   3,909,111 

21,691

  

Regal-Beloit Corporation

   1,845,470 

116,179

  

United Technologies Corporation

   16,568,287 

94,421

  

Waste Connections, Inc.

   8,759,436 
    

 

 

 
  

Total

   108,488,304 
    

 

 

 

Information Technology (17.7%)

  

19,797

  

Accenture plc

   3,616,318 

202,681

  

Amphenol Corporation

   20,178,920 

114,584

  

Automatic Data Processing, Inc.

   18,836,464 

98,108

  

CDK Global, Inc.

   5,917,875 

144,536

  

Cisco Systems, Inc.

   8,086,789 

221,739

  

Cognizant Technology Solutions Corporation

   16,178,077 

169,971

  

Fidelity National Information Services, Inc.

   19,704,738 

113,828

  

Fiserv, Inc.a

   9,930,355 

72,454

  

International Business Machines Corporation

   10,163,123 

31,404

  

Intuit, Inc.

   7,884,288 

36,760

  

MasterCard, Inc.

   9,345,862 

79,743

  

Microsoft Corporation

   10,414,436 

317,763

  

Oracle Corporation

   17,581,827 

33,907

  

Paychex, Inc.

   2,858,699 

110,623

  

Synopsys, Inc.a

   13,394,233 
    

 

 

 
  

Total

   174,092,004 
    

 

 

 

Materials (0.4%)

  

42,076

  

Royal Gold, Inc.

   3,663,136 
    

 

 

 
  

Total

   3,663,136 
    

 

 

 

Real Estate (8.6%)

  

98,601

  

American Tower Corporation

   19,256,775 

6,836

  

Boston Properties, Inc.

   940,770 

162,266

  

Camden Property Trust

   16,332,073 

108,787

  

Crown Castle International Corporation

   13,683,229 

412,177

  

Douglas Emmett, Inc.

   16,977,571 

29,027

  

Equity Residential

   2,218,243 

32,445

  

First Industrial Realty Trust, Inc.

   1,144,335 

196,932

  

Highwoods Properties, Inc.

   8,779,229 

22,957

  

Public Storage, Inc.

   5,077,629 
    

 

 

 
  

Total

   84,409,854 
    

 

 

 

Utilities (7.3%)

  

26,696

  

ALLETE, Inc.

   2,174,389 
 

 

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

 16 


LOW VOLATILITY EQUITY FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

 

Shares

  

Common Stock (99.7%)

  Value 

Utilities (7.3%) - continued

  

5,090

  

American Electric Power Company, Inc.

  $435,449 

28,663

  

Atmos Energy Corporation

   2,933,371 

96,267

  

CMS Energy Corporation

   5,347,632 

50,872

  

Consolidated Edison, Inc.

   4,383,132 

164,959

  

Duke Energy Corporation

   15,031,064 

4,895

  

Evergy, Inc.

   283,029 

24,650

  

Exelon Corporation

   1,255,917 

27,970

  

MDU Resources Group, Inc.

   731,415 

105,687

  

NextEra Energy, Inc.

   20,549,780 

8,579

  

ONE Gas, Inc.

   759,413 

103,846

  

Southern Company

   5,526,684 

11,925

  

Southwest Gas Holdings, Inc.

   992,041 

30,940

  

Spire, Inc.

   2,604,839 

65,001

  

UGI Corporation

   3,543,205 

102,283

  

Xcel Energy, Inc.

   5,778,990 
    

 

 

 
  

Total

   72,330,350 
    

 

 

 
  

Total Common Stock

(cost $880,632,459)

   983,522,567 
    

 

 

 

 

Shares

  

Short-Term Investments (0.2%)

  Value 
  

Thrivent Core Short-Term Reserve Fund

  

181,923

  

2.690%

   1,819,230 
    

 

 

 
  Total Short-Term Investments (cost $1,819,230)   1,819,230 
    

 

 

 
  Total Investments (cost $882,451,689) 99.9%  $985,341,797 
    

 

 

 
  Other Assets and Liabilities, Net 0.1%   648,379 
    

 

 

 
  

Total Net Assets 100.0%

  $985,990,176 
    

 

 

 

 

a

Non-income producing security.

Unrealized Appreciation (Depreciation)

Gross unrealized appreciation and depreciation of investments of the portfolio as a whole (including derivatives, if any), based on cost for federal income tax purposes, were as follows:

 

Gross unrealized appreciation

  $114,597,626 

Gross unrealized depreciation

   (11,654,884
  

 

 

 

Net unrealized appreciation (depreciation)

  $102,942,742 

Cost (includes notional principal amount of derivatives, if any) for federal income tax purposes

  $882,399,055 
 

 

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

 17 


LOW VOLATILITY EQUITY FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

Fair Valuation Measurements

The following table is a summary of the inputs used, as of April 30, 2019, in valuing Low Volatility Equity Fund’s assets carried at fair value.

 

Investments in Securities

  Total   Level 1   Level 2   Level 3 

Common Stock

        

Communications Services

   25,948,751    25,948,751    –      –   

Consumer Discretionary

   61,955,554    61,955,554    –      –   

Consumer Staples

   141,369,860    141,369,860    –      –   

Financials

   151,389,561    151,389,561    –      –   

Health Care

   159,875,193    159,875,193    –      –   

Industrials

   108,488,304    108,488,304    –      –   

Information Technology

   174,092,004    174,092,004    –      –   

Materials

   3,663,136    3,663,136    –      –   

Real Estate

   84,409,854    84,409,854    –      –   

Utilities

   72,330,350    72,330,350    –      –   
  

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal Investments in Securities

  $983,522,567   $983,522,567   $–     $–   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other Investments *

  Total             

Affiliated Short-Term Investments

   1,819,230       
  

 

 

       

Subtotal Other Investments

  $1,819,230       
  

 

 

       

Total Investments at Value

  $985,341,797       
  

 

 

       

 

*

Certain investments are measured at fair value using a net asset value per share that is not publicly available (practical expedient). According to disclosure requirements of Accounting Standards Codification (ASC) 820, Fair Value Measurement, securities valued using the practical expedient are not classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities.

There were no significant transfers between Levels during the period ended April 30, 2019. Transfers between Levels are identified as of the end of the period.

Investment in Affiliates

Affiliated issuers, as defined under the Investment Company Act of 1940, include those in which the Fund’s holdings of an issuer represent 5% or more of the outstanding voting securities of an issuer, any affiliated mutual fund, or a company which is under common ownership or control with the Fund. The Fund owns shares of Thrivent Cash Management Trust for the purpose of securities lending and Thrivent Core Short-Term Reserve Fund, a series of Thrivent Core Funds, primarily to serve as a cash sweep vehicle for the Fund. Thrivent Cash Management Trust and Thrivent Core Funds are established solely for investment by Thrivent entities.

A summary of transactions (in thousands; values shown as zero are less than $500) for the fiscal year to date, in Low Volatility Equity Fund, is as follows:

 

Fund

  Value
10/31/2018
   Gross
Purchases
   Gross
Sales
   Value
4/30/2019
   Shares Held at
4/30/2019
   % of Net
Assets
4/30/2019
 

Affiliated Short-Term Investments

            

Core Short-Term Reserve, 2.690%

  $830   $8,594   $7,605   $1,819    182    0.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Affiliated Short-Term Investments

   830        1,819      0.2 
  

 

 

       

 

 

     

 

 

 

Collateral Held for Securities Loaned

            

Cash Management Trust- Collateral Investment

   –      21,318    21,318    –      –      –   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Value

  $830       $1,819     
  

 

 

       

 

 

     

 

Fund

  Net Realized
Gain/(Loss)
   Change in
Unrealized
Appreciation/
(Depreciation)
   Distributions of
Realized Capital
Gains
   Income Earned
11/1/2018

- 4/30/2019
 

Affiliated Short-Term Investments

        

Core Short-Term Reserve, 2.690%

  $–     $–     $–     $19 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Income from Affiliated Investments

        $19 
        

 

 

 

Collateral Held for Securities Loaned

        

Cash Management Trust- Collateral Investment

   –      –      –      115 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Affiliated Income from Securities Loaned, Net

        $115 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $–     $–     $–     
  

 

 

   

 

 

   

 

 

   

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

18


SHORT-TERM RESERVE FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

Principal
Amount

  

Asset-Backed Securities (5.8%)a

  Value 
  

Ally Auto Receivables Trust

  

$7,934,071

  

2.709%, 2/18/2020, Ser.2019-1

  $7,934,789 
  

Americredit Automobile Receivables Trust

  

4,561,228

  

2.660%, 3/18/2020, Ser.2019-1

   4,561,714 
  

Ascentium Equipment Receivables, LLC

  

7,180,047

  

2.731%, 11/12/2019, Ser.2018-2Ab

   7,180,459 

11,000,000

  

2.660%, 4/10/2020, Ser.2019-1Ab

   11,001,731 
  

BMW Vehicle Lease Trust

  

5,336,875

  

2.496%, 10/21/2019, Ser.2018-1

   5,336,478 
  

Canadian Pacer Auto Receivables Trust

  

10,000,000

  

2.596%, 4/20/2020, Ser.2019-1Ab

   9,999,646 
  

CarMax Auto Owner Trust

  

6,300,775

  

2.592%, 11/15/2019, Ser.2018-4

   6,300,657 

13,432,344

  

2.780%, 1/15/2020, Ser.2019-1

   13,434,946 
  

CCG Receivables Trust

  

5,500,000

  

2.628%, 4/14/2020, Ser.2019-1b

   5,500,301 
  

CNH Equipment Trust

  

3,066,395

  

2.470%, 10/15/2019, Ser.2018-B

   3,066,177 

16,949,193

  

2.753%, 2/28/2020, Ser.2019-A

   16,950,495 
  

Dell Equipment Finance Trust

  

3,780,969

  

2.657%, 10/22/2019, Ser.2018-2b

   3,780,768 

11,000,000

  

2.648%, 4/22/2020, Ser.2019-1b

   11,000,835 
  

DLL Securitization Trust

  

14,000,000

  

2.657%, 4/20/2020, Ser.2019-DA1b

   14,001,120 
  

Drive Auto Receivables Trust

  

5,779,447

  

2.780%, 1/15/2020, Ser.2019-1

   5,779,398 

9,127,238

  

2.648%, 3/16/2020, Ser.2019-2

   9,127,289 
  

Enterprise Fleet Financing, LLC

  

8,326,175

  

2.815%, 11/20/2019, Ser.2018-3b

   8,327,500 
  

Fifth Third Auto Trust

  

17,500,000

  

2.576%, 5/15/2020, Ser.2019-1c

   17,500,000 
  

Ford Credit Auto Lease Trust

  

16,141,415

  

2.664%, 3/15/2020, Ser.2019-A

   16,141,757 
  

GM Financial Consumer Automobile Receivables Trust

  

9,000,000

  

2.597%, 5/20/2020, Ser.2019-2c

   9,000,000 

13,000,000

  

2.720%, 4/16/2020, Ser.2019-2

   13,000,398 
  

Great American Auto Leasing, Inc.

  

7,677,253

  

2.764%, 2/18/2020, Ser.2019-1b

   7,679,776 

Principal
Amount

  

Asset-Backed Securities (5.8%)a

  Value 
  

Hyundai Auto Lease Securitization Trust

  

$8,925,995

  

2.662%, 3/13/2020, Ser.2019-Ab

  $8,926,269 
  

Hyundai Auto Receivables Trust

  

10,000,000

  

2.605%, 4/15/2020, Ser.2019-A

   10,000,425 
  

John Deere Owner Trust

  

249,580

  

2.535%, 8/15/2019, Ser.2018-B

   249,572 
  

Mercedes-Benz Auto Lease Trust

  

12,028,699

  

2.743%, 2/18/2020, Ser.2019-A

   12,029,966 
  

Nissan Auto Lease Trust

  

12,000,000

  

2.659%, 4/15/2020, Ser.2019-A

   11,999,640 
  

Nissan Auto Receivables Owner Trust

  

9,952,570

  

2.708%, 2/18/2020, Ser.2019-A

   9,954,172 
  

Volvo Financial Equipment, LLC

  

14,218,989

  

2.745%, 2/18/2020, Ser.2019-1Ab

   14,221,839 
  

Westlake Automobile Receivables Trust

  

10,974,349

  

2.769%, 2/18/2020, Ser.2019-1Ab

   10,976,295 
  

Wheels SPV 2, LLC

  

975,069

  

2.550%, 7/20/2019, Ser.2018-1Ab

   975,076 
  

World Omni Auto Receivables Trust

  

268,927

  

2.441%, 10/15/2019, Ser.2018-D

   268,905 

10,189,715

  

2.726%, 2/18/2020, Ser.2019-A

   10,190,796 

9,710,142

  

2.605%, 3/16/2020, Ser.2019-A

   9,709,888 
  

World Omni Select Auto Trust

  

1,836,879

  

2.782%, 11/15/2019, Ser.2018-1Ab

   1,836,984 
    

 

 

 
  

Total

   307,946,061 
    

 

 

 

Principal
Amount

  

Basic Materials (2.8%)a

  Value 
  

Dow Chemical Company

  

10,000,000

  

2.700%, 5/14/2019

   9,989,702 
  

EI du Pont de Nemours & Company

  

11,193,000

  

2.680%, 5/8/2019b

   11,186,550 

5,000,000

  

2.680%, 5/15/2019b

   4,994,563 

17,020,000

  

2.660%, 5/16/2019b

   17,000,204 

15,010,000

  

2.690%, 5/20/2019b

   14,987,927 

10,000,000

  

2.670%, 5/30/2019b

   9,977,750 

20,000,000

  

2.670%, 6/10/2019b

   19,938,773 
  

International Paper Company

  

10,700,000

  

2.680%, 5/2/2019b

   10,698,444 

19,500,000

  

2.670%, 5/7/2019b

   19,490,028 
  

Nutrien, Ltd.

  

10,000,000

  

2.690%, 5/2/2019b

   9,998,524 

20,000,000

  

2.700%, 5/9/2019b

   19,986,625 
    

 

 

 
  

Total

   148,249,090 
    

 

 

 
 

 

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

 19 


SHORT-TERM RESERVE FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

Principal
Amount

 

Capital Goods (4.6%)a

 Value 
 

Boeing Company

 

$10,000,000

 

2.540%, 5/22/2019b

 $9,984,404 

11,830,000

 

2.600%, 6/14/2019b

  11,792,662 

15,000,000

 

2.610%, 6/28/2019b

  14,936,427 

20,000,000

 

2.615%, 7/10/2019b

  19,897,563 

10,000,000

 

2.620%, 7/23/2019b

  9,939,193 
 

Caterpillar Financial Services Corporation

 

5,000,000

 

1.350%, 5/18/2019

  4,996,537 
 

Eaton Corporation

 

25,000,000

 

2.650%, 5/9/2019b

  24,983,531 

25,000,000

 

2.620%, 5/10/2019b

  24,981,688 
 

Honeywell International, Inc.

 

24,457,000

 

2.623% (LIBOR 3M + 0.040%), 10/30/2019d

  24,463,187 
 

Textron, Inc.

 

20,000,000

 

2.690%, 5/21/2019b

  19,966,353 
 

Waste Management, Inc.

 

5,000,000

 

2.710%, 5/2/2019b

  4,999,276 

15,000,000

 

2.650%, 5/8/2019b

  14,991,260 

14,000,000

 

2.700%, 5/13/2019b

  13,986,679 

25,000,000

 

2.680%, 5/14/2019b

  24,974,363 

20,000,000

 

2.700%, 5/22/2019b

  19,967,171 
  

 

 

 
 

Total

  244,860,294 
  

 

 

 

Principal
Amount

 

Communications Services (2.7%)a

 Value 
 

Comcast Corporation

 

15,000,000

 

2.650%, 5/8/2019b

  14,991,223 

25,000,000

 

2.650%, 5/24/2019b

  24,955,067 
 

Omnicom Cap, Inc.

 

15,000,000

 

2.700%, 5/1/2019b

  14,998,911 

10,000,000

 

2.650%, 5/10/2019b

  9,992,675 

23,000,000

 

2.650%, 5/17/2019b

  22,971,055 
 

Rogers Communications, Inc.

 

5,000,000

 

2.670%, 5/2/2019b

  4,999,273 
 

Verizon Communications, Inc.

 

10,000,000

 

2.600%, 5/6/2019b

  9,995,620 

18,700,000

 

2.660%, 5/22/2019b

  18,669,202 

25,000,000

 

2.680%, 6/4/2019b

  24,934,205 
�� 

 

 

 
 

Total

  146,507,231 
  

 

 

 

Principal
Amount

 

Consumer Cyclical (6.3%)a

 Value 
 

American Honda Finance Corporation

 

25,000,000

 

2.620%, 5/28/2019e

  24,952,186 

7,813,000

 

1.200%, 7/12/2019e

  7,789,561 

23,500,000

 

3.033% (LIBOR 3M + 0.340%), 2/14/2020d,e

  23,560,916 

5,000,000

 

2.791% (LIBOR 3M + 0.150%), 2/21/2020d,e

  5,003,149 

25,000,000

 

2.843% (LIBOR 3M + 0.180%), 5/22/2020d,e

  25,018,056 

13,773,000

 

2.875% (LIBOR 3M + 0.260%), 6/16/2020d,e

  13,797,990 
 

Charta, LLC

 

6,000,000

 

2.570%, 5/21/2019b,e

  5,991,362 

15,000,000

 

2.540%, 7/30/2019b,e

  14,902,554 
 

Ecolab, Inc.

 

7,950,000

 

2.600%, 5/2/2019b

  7,948,844 

6,150,000

 

2.600%, 5/9/2019b

  6,145,949 
 

Nissan Motor Acceptance Corporation

 

10,000,000

 

2.700%, 5/3/2019b,e

  9,997,983 

Principal
Amount

 

Consumer Cyclical (6.3%)a

 Value 

$4,000,000

 

2.730%, 5/13/2019b,e

 $3,996,468 

15,000,000

 

2.730%, 5/20/2019b,e

  14,979,558 

15,000,000

 

2.660%, 5/30/2019b,e

  14,968,625 

20,000,000

 

2.700%, 6/11/2019b,e

  19,940,127 

10,000,000

 

2.690%, 6/13/2019b,e

  9,968,528 
 

Toyota Credit Canada, Inc.

 

25,000,000

 

2.703% (LIBOR 1M + 0.230%), 7/10/2019d

  25,009,938 

25,000,000

 

2.633% (LIBOR 3M + 0.050%), 1/24/2020d

  25,000,005 
 

Toyota Financial Services de Puerto Rico, Inc.

 

21,250,000

 

2.540%, 6/25/2019

  21,169,510 
 

Toyota Motor Credit Corporation

 

15,000,000

 

2.600%, 5/29/2019

  14,970,891 

13,982,000

 

2.848% (LIBOR 3M + 0.260%), 4/17/2020d

  14,006,954 
 

Toyota Motor Financial Netherlands BV

 

25,000,000

 

2.667% (LIBOR 3M + 0.070%), 6/25/2019d

  25,004,674 
  

 

 

 
 

Total

  334,123,828 
  

 

 

 

Principal
Amount

 

ConsumerNon-Cyclical (9.9%)a

 Value 
 

Altria Group, Inc.

 

6,000,000

 

2.660%, 5/1/2019

  5,999,566 

5,000,000

 

2.700%, 5/3/2019

  4,998,912 

10,000,000

 

2.680%, 5/8/2019

  9,994,173 
 

Amgen, Inc.

 

9,845,000

 

2.200%, 5/22/2019

  9,842,940 
 

Anheuser-Busch InBev Worldwide, Inc.

 

15,000,000

 

2.680%, 5/16/2019b

  14,982,460 

25,000,000

 

2.680%, 5/21/2019b

  24,961,587 

10,000,000

 

2.680%, 5/23/2019b

  9,983,165 
 

Anthem, Inc

 

5,000,000

 

2.660%, 5/28/2019b

  4,989,508 
 

Coca-Cola Company

 

5,000,000

 

2.800%, 5/13/2019b

  4,995,585 

10,000,000

 

2.780%, 5/16/2019b

  9,989,107 

10,000,000

 

2.750%, 6/24/2019b

  9,962,035 

15,000,000

 

2.580%, 7/31/2019b

  14,903,707 

15,000,000

 

2.540%, 8/7/2019b

  14,896,091 

10,000,000

 

2.610%, 9/11/2019b

  9,905,121 

25,000,000

 

2.550%, 9/17/2019b

  24,751,792 
 

Diageo Capital plc

 

25,000,000

 

2.670%, 5/22/2019b

  24,958,826 

24,120,000

 

2.720%, 6/12/2019b

  24,041,723 
 

Kellogg Company

 

11,600,000

 

2.610%, 5/14/2019b

  11,588,055 
 

Merck & Company, Inc.

 

17,495,000

 

3.072% (LIBOR 3M + 0.375%), 2/10/2020d

  17,539,962 
 

Mondelez International, Inc.

 

2,000,000

 

2.680%, 5/6/2019b

  1,999,124 

11,030,000

 

2.650%, 5/13/2019b

  11,019,465 

15,750,000

 

2.650%, 6/13/2019b

  15,697,659 
 

Nestle Finance International, Ltd.

 

25,000,000

 

2.710%, 5/20/2019

  24,966,486 

10,000,000

 

2.730%, 6/18/2019

  9,966,762 
 

PepsiCo, Inc.

 

6,170,000

 

1.550%, 5/2/2019

  6,170,000 
 

 

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

 20 


SHORT-TERM RESERVE FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

Principal
Amount

  

ConsumerNon-Cyclical (9.9%)a

  Value 

$10,978,000

  

2.778% (LIBOR 3M + 0.040%), 5/2/2019d

  $10,978,000 

25,000,000

  

2.872% (LIBOR 3M + 0.270%), 10/4/2019d

   25,027,794 
  

Pfizer, Inc.

  

10,000,000

  

2.100%, 5/15/2019

   9,998,300 
  

Philip Morris International, Inc.

  

25,000,000

  

2.620%, 6/27/2019b

   24,899,426 

10,000,000

  

2.610%, 6/28/2019b

   9,959,044 

5,005,000

  

1.875%, 11/1/2019

   4,984,408 
  

Reckitt Benckiser Treasury Services plc

  

15,000,000

  

2.670%, 5/17/2019b

   14,982,639 

10,000,000

  

2.710%, 6/17/2019b

   9,966,880 

10,000,000

  

2.730%, 6/20/2019b

   9,964,753 

10,000,000

  

2.700%, 6/21/2019b

   9,964,048 
  

Roche Holdings, Inc.

  

12,100,000

  

2.941% (LIBOR 3M + 0.340%), 9/30/2019b,d

   12,115,690 
  

Stanley Black & Decker, Inc.

  

10,000,000

  

2.560%, 5/3/2019b

   9,997,713 

6,280,000

  

2.620%, 5/10/2019b

   6,275,257 

8,000,000

  

2.630%, 5/15/2019b

   7,991,000 
  

UnitedHealth Group, Inc.

  

15,000,000

  

2.580%, 5/17/2019b

   14,981,789 

25,000,000

  

2.610%, 6/10/2019b

   24,926,257 
    

 

 

 
  

Total

   530,116,809 
    

 

 

 

Principal
Amount

  

Energy (4.1%)a

  Value 
  

BP Capital Markets plc

  

12,450,000

  

2.650%, 5/15/2019b,e

   12,437,197 

25,000,000

  

2.640%, 6/17/2019b,e

   24,914,800 

21,000,000

  

2.610%, 6/28/2019b,e

   20,911,033 

8,000,000

  

2.650%, 7/8/2019b,e

   7,959,949 

15,000,000

  

2.640%, 7/16/2019b,e

   14,915,525 
  

Chevron Corporation

  

5,000,000

  

3.094% (LIBOR 3M + 0.410%), 11/15/2019d

   5,010,239 
  

Schlumberger Investment SA

  

25,000,000

  

2.580%, 5/13/2019b

   24,978,108 

25,000,000

  

2.550%, 6/19/2019b

   24,914,930 

14,000,000

  

2.560%, 7/19/2019b

   13,922,751 
  

Shell International Finance BV

  

7,930,000

  

1.375%, 5/10/2019

   7,927,938 

21,083,000

  

2.947% (LIBOR 3M + 0.350%), 9/12/2019d

   21,114,723 
  

Suncor Energy, Inc.

  

8,000,000

  

2.730%, 5/23/2019b,e

   7,986,226 

10,000,000

  

2.780%, 5/28/2019b,e

   9,979,008 

10,000,000

  

2.680%, 5/29/2019b,e

   9,978,258 

10,000,000

  

2.750%, 6/28/2019b,e

   9,954,963 
  

Total Capital International SA

  

5,000,000

  

2.100%, 6/19/2019

   4,996,356 
    

 

 

 
  

Total

   221,902,004 
    

 

 

 

Principal
Amount

  

Financials (43.3%)a

  Value 
  

AllianceBernstein, LP

  

7,500,000

  

2.560%, 5/21/2019b

   7,489,264 

9,550,000

  

2.550%, 5/28/2019b

   9,531,735 
  

ANZ New Zealand International, Ltd.

  

5,000,000

  

2.600%, 9/23/2019b,e

   4,997,524 

Principal
Amount

  

Financials (43.3%)a

  Value 
  

Atlantic Asset Securitization, LLC

  

$10,000,000

  

2.570%, 6/24/2019b

  $9,960,935 
  

Australia and New Zealand Banking Group, Ltd.

  

5,000,000

  

1.600%, 7/15/2019

   4,990,112 

5,050,000

  

3.262% (LIBOR 3M + 0.660%), 9/23/2019b,d

   5,062,894 

10,000,000

  

2.660% (LIBOR 3M + 0.050%), 3/31/2020d

   9,999,945 
  

Bank of Montreal

  

5,939,000

  

1.500%, 7/18/2019

   5,925,297 

15,000,000

  

3.051% (LIBOR 3M + 0.440%), 6/15/2020d

   15,060,451 
  

Bank of Montreal Chicago

  

25,000,000

  

2.920% (SOFRRATE + 0.440%), 5/9/2019d

   25,001,770 

10,000,000

  

2.687% (LIBOR 3M + 0.080%), 6/7/2019d

   10,000,692 

15,000,000

  

2.673% (LIBOR 1M + 0.180%), 4/3/2020d

   14,999,522 

15,000,000

  

2.654% (LIBOR 3M + 0.070%), 4/9/2020d

   14,999,940 
  

Bank of New York Mellon Corporation

  

6,373,000

  

2.200%, 5/15/2019

   6,372,241 
  

Bank of Nova Scotia

  

15,000,000

  

2.661% (LIBOR 3M + 0.080%), 1/24/2020d

   15,005,380 
  

Bank of Nova Scotia Houston

  

10,000,000

  

2.813% (LIBOR 3M + 0.130%), 5/16/2019d

   10,000,490 

10,000,000

  

2.680% (LIBOR 3M + 0.080%), 7/2/2019d

   10,001,253 

15,000,000

  

2.673% (LIBOR 1M + 0.200%), 8/14/2019d

   15,005,585 

10,000,000

  

2.791% (LIBOR 3M + 0.190%), 3/11/2020d

   10,012,671 
  

Barclays Bank plc

  

4,670,000

  

2.750%, 8/12/2019b

   4,633,021 
  

Barton Capital SA

  

25,000,000

  

2.540%, 5/20/2019b,e

   24,964,555 
  

Berkshire Hathaway Finance Corporation

  

6,780,000

  

1.300%, 8/15/2019

   6,753,964 

11,960,000

  

2.944% (LIBOR 3M + 0.260%), 8/15/2019d

   11,969,357 

14,000,000

  

2.904% (LIBOR 3M + 0.320%), 1/10/2020d

   14,027,516 
  

BPCE SA

  

10,000,000

  

2.500%, 7/15/2019

   9,994,700 
  

Branch Banking and Trust Company

  

5,000,000

  

1.450%, 5/10/2019

   4,998,500 

8,500,000

  

3.047% (LIBOR 3M + 0.450%), 1/15/2020d

   8,516,329 
  

CAFCO, LLC

  

25,000,000

  

2.560%, 6/21/2019b,e

   24,909,036 
  

Canadian Imperial Bank of Commerce

  

15,000,000

  

2.732% (LIBOR 1M + 0.230%), 8/1/2019d

   15,006,849 
  

Chariot Funding, LLC

  

20,000,000

  

2.700%, 5/17/2019b

   19,976,644 

5,610,000

  

2.550%, 6/3/2019b

   5,596,781 

10,000,000

  

2.810%, 7/9/2019b

   9,951,000 

10,000,000

  

2.780%, 7/12/2019b

   9,948,961 

6,000,000

  

2.550%, 8/13/2019b

   5,956,425 
 

 

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

 21 


SHORT-TERM RESERVE FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

Principal
Amount

  

Financials (43.3%)a

  Value 
  

Ciesco, LLC

  

$20,000,000

  

2.880%, 5/29/2019b,e

  $19,959,899 
  

Citibank NA

  

7,700,000

  

2.875% (LIBOR 3M + 0.260%), 9/18/2019d

   7,707,284 

19,000,000

  

3.056% (LIBOR 3M + 0.320%), 5/1/2020d

   19,033,117 
  

Citigroup Global Markets, Inc.

  

13,250,000

  

2.620%, 10/18/2019b

   13,087,181 
  

Commonwealth Bank of Australia

  

32,650,000

  

3.051% (LIBOR 3M + 0.450%), 3/10/2020b,d

   32,755,205 
  

CRC Funding, LLC

  

25,000,000

  

2.550%, 7/12/2019b,e

   24,870,881 

15,000,000

  

2.550%, 7/16/2019b,e

   14,918,091 

10,000,000

  

2.540%, 7/17/2019b,e

   9,944,663 

10,000,000

  

2.780%, 7/23/2019b,e

   9,940,220 

10,000,000

  

2.540%, 7/29/2019b,e

   9,935,750 

12,000,000

  

2.540%, 8/2/2019b,e

   11,919,442 
  

Credit Suisse New York

  

25,000,000

  

2.300%, 5/28/2019

   24,994,750 
  

Dealers Capital Access Trust, LLC

  

10,000,000

  

2.580%, 5/9/2019

   9,993,925 

40,000,000

  

2.560%, 5/28/2019

   39,922,440 

20,000,000

  

2.550%, 5/31/2019

   19,956,927 

5,000,000

  

2.550%, 7/22/2019

   4,970,662 
  

Glaxosmithkline Finance plc

  

10,000,000

  

2.550%, 6/17/2019b,e

   9,966,400 

13,950,000

  

2.600%, 8/16/2019b,e

   13,843,199 
  

Gotham Funding Corporation

  

20,000,000

  

2.540%, 7/17/2019b,e

   19,888,807 
  

HSBC USA, Inc.

  

5,288,000

  

2.250%, 6/23/2019

   5,284,622 
  

ING (US) Funding, LLC

  

14,250,000

  

2.674% (LIBOR 1M + 0.200%), 5/17/2019d,e

   14,251,597 
  

ING Bank NV

  

8,700,000

  

1.650%, 8/15/2019b

   8,671,820 

5,000,000

  

3.294% (LIBOR 3M + 0.610%), 8/15/2019b,d

   5,008,215 
  

J.P. Morgan Securities, LLC

  

25,000,000

  

2.697% (LIBOR 1M + 0.210%), 9/23/2019b,d

   25,010,815 
  

JPMorgan Chase Bank NA

  

4,625,000

  

3.192% (LIBOR 3M + 0.590%), 9/23/2019d

   4,632,422 
  

Jupiter Securitization Company, LLC

  

15,000,000

  

2.930%, 5/29/2019b,e

   14,969,925 

25,000,000

  

2.652% (LIBOR 3M + 0.060%), 10/22/2019b,d,e

   24,999,940 
  

La Fayette Asset Securitization, LLC

  

10,000,000

  

2.600%, 6/3/2019b

   9,976,436 

5,709,000

  

2.600%, 6/5/2019b

   5,694,739 

5,000,000

  

3.000%, 6/11/2019b

   4,985,382 

25,000,000

  

2.580%, 6/13/2019b

   24,923,336 

15,000,000

  

2.540%, 7/18/2019b

   14,915,898 
  

Liberty Street Funding, LLC

  

15,000,000

  

2.560%, 8/1/2019b,e

   14,902,582 
  

LMA Americas, LLC

  

10,000,000

  

2.550%, 5/13/2019b

   9,991,088 

2,450,000

  

2.530%, 5/14/2019b

   2,447,648 

10,000,000

  

2.520%, 6/21/2019b

   9,963,022 

Principal
Amount

  

Financials (43.3%)a

  Value 
  

Marsh & McLennan Companies, Inc.

  

$13,000,000

  

2.668%, 5/6/2019b

  $12,994,306 

15,000,000

  

2.640%, 5/14/2019b

   14,984,553 

25,000,000

  

2.640%, 5/24/2019b

   24,955,067 
  

MetLife Short Term Funding, LLC

  

15,000,000

  

2.540%, 6/3/2019b

   14,964,937 

10,000,000

  

2.560%, 7/15/2019b

   9,946,568 

25,000,000

  

2.580%, 8/14/2019b

   24,811,923 

7,500,000

  

2.650%, 8/19/2019b

   7,440,869 
  

Metropolitan Life Global Funding I

  

4,999,000

  

1.750%, 9/19/2019b

   4,981,627 
  

Mitsubishi UFJ Trust & Banking Corporation

  

15,000,000

  

2.590%, 5/20/2019

   15,001,044 

25,000,000

  

2.570%, 6/12/2019

   25,001,908 

35,000,000

  

2.560%, 7/19/2019b

   34,802,445 
  

Mizuho Bank, Ltd.

  

10,000,000

  

2.689% (LIBOR 1M + 0.210%), 7/29/2019d

   10,003,952 

6,000,000

  

2.650%, 9/25/2019b

   5,999,161 
  

National Australia Bank, Ltd.

  

15,000,000

  

2.741% (LIBOR 3M + 0.100%), 5/21/2019b,d

   15,000,683 

7,900,000

  

2.250%, 7/1/2019b

   7,895,050 

15,000,000

  

2.695% (LIBOR 1M + 0.200%), 8/2/2019b,d

   15,005,642 

13,857,000

  

3.173% (LIBOR 3M + 0.510%), 5/22/2020b,d

   13,921,516 
  

National Bank of Canada

  

7,180,000

  

3.157% (LIBOR 3M + 0.560%), 6/12/2020d

   7,210,427 
  

Natixis NY

  

10,000,000

  

2.700%, 5/17/2019

   9,988,525 
  

Nederlandse Waterschapsbank NV

  

15,000,000

  

2.520%, 6/24/2019b

   14,942,181 

15,000,000

  

2.520%, 6/28/2019b

   14,937,829 
  

New York Life Global Funding

  

11,548,000

  

2.971% (LIBOR 3M + 0.390%), 10/24/2019b,d

   11,562,949 

11,605,000

  

2.692% (LIBOR 3M + 0.100%), 1/21/2020b,d

   11,609,758 
  

Nordea Bank AB New York

  

10,000,000

  

2.580%, 5/13/2019

   10,000,569 

25,000,000

  

2.643% (LIBOR 1M + 0.170%), 5/15/2019d

   25,002,174 

20,000,000

  

2.711% (LIBOR 3M + 0.070%), 5/21/2019d

   20,000,704 

15,000,000

  

2.651% (LIBOR 1M + 0.170%), 6/10/2019d

   15,003,133 
  

Nordea Bank Abp

  

10,000,000

  

1.625%, 9/30/2019b

   9,956,735 

12,448,000

  

3.099% (LIBOR 3M + 0.470%), 5/29/2020b,d

   12,491,543 
  

Old Line Funding, LLC

  

17,180,000

  

2.737% (LIBOR 1M + 0.250%), 7/19/2019b,d,e

   17,182,361 
  

Pricoa Global Funding I

  

17,960,000

  

1.450%, 9/13/2019b

   17,881,500 
  

Pricoa Short Term Funding, LLC

  

3,450,000

  

2.800%, 5/6/2019b

   3,448,598 

15,000,000

  

2.720%, 5/15/2019b

   14,984,688 

10,000,000

  

2.570%, 7/15/2019b

   9,946,568 

15,000,000

  

2.550%, 9/20/2019b

   14,846,990 
 

 

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

 22 


SHORT-TERM RESERVE FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

Principal
Amount

  

Financials (43.3%)a

  Value 
  

Royal Bank of Canada

  

$6,800,000

  

3.062% (LIBOR 3M + 0.480%), 7/29/2019d

  $6,807,435 

15,195,000

  

2.869% (LIBOR 3M + 0.240%), 8/29/2019d

   15,209,091 

5,000,000

  

2.741% (LIBOR 3M + 0.140%), 1/16/2020b,d

   5,003,830 

10,000,000

  

2.995% (LIBOR 3M + 0.380%), 3/2/2020d

   10,027,858 

15,000,000

  

2.653% (LIBOR 1M + 0.180%), 4/14/2020b,d

   14,998,139 

10,000,000

  

2.730% (FEDL 1M + 0.280%), 4/27/2020d

   9,999,973 
  

Skandinaviska Enskilda Banken AB

  

7,500,000

  

1.840%, 8/2/2019

   7,485,437 
  

Sumitomo Mitsui Bank NY

  

10,000,000

  

2.800%, 6/3/2019

   10,003,127 

10,000,000

  

2.600%, 6/4/2019

   10,001,324 

15,000,000

  

2.250%, 7/11/2019

   14,988,000 

10,000,000

  

2.644% (LIBOR 1M + 0.170%), 8/7/2019d

   10,001,524 
  

Suncorp-Metway, Ltd.

  

15,000,000

  

2.720%, 5/20/2019b

   14,978,375 
  

Svenska Handelsbanken AB

  

10,213,000

  

2.250%, 6/17/2019

   10,206,617 

7,240,000

  

3.105% (LIBOR 3M + 0.490%), 6/17/2019d

   7,244,055 
  

Svenska Handelsbanken NY

  

10,000,000

  

2.839% (LIBOR 3M + 0.100%), 5/7/2019d

   10,000,172 

25,000,000

  

2.781% (LIBOR 1M + 0.300%), 6/24/2019d

   25,009,755 

10,000,000

  

2.773% (LIBOR 1M + 0.290%), 6/26/2019d

   10,004,077 

25,000,000

  

2.797% (LIBOR 1M + 0.310%), 8/21/2019d

   25,017,993 

10,000,000

  

2.686% (LIBOR 3M + 0.040%), 2/26/2020d

   9,999,955 
  

Swedbank AB

  

15,000,000

  

2.620%, 8/19/2019

   14,880,490 
  

Swedbank NY

  

10,000,000

  

2.747% (LIBOR 1M + 0.260%), 5/21/2019d

   10,001,787 

25,000,000

  

2.661% (LIBOR 1M + 0.180%), 7/24/2019d

   25,008,013 
  

Thunder Bay Funding, LLC

  

25,000,000

  

2.679% (LIBOR 1M + 0.200%), 7/29/2019b,d

   25,002,987 

25,000,000

  

2.631% (LIBOR 3M + (0.020)%), 8/28/2019b,d

   24,999,889 

25,000,000

  

2.560%, 9/10/2019b

   24,765,680 

15,000,000

  

2.610% (LIBOR 3M + 0.010%), 10/9/2019b,d

   14,999,901 
  

Toronto-Dominion Bank

  

10,000,000

  

2.874% (LIBOR 1M + 0.400%), 6/7/2019b,d

   10,004,383 

15,000,000

  

2.808% (LIBOR 3M + 0.070%), 8/2/2019b,d

   15,002,285 

15,000,000

  

2.944% (LIBOR 3M + 0.210%), 11/6/2019b,d

   15,014,410 
  

Toronto-Dominion Bank NY

  

25,000,000

  

2.570%, 7/8/2019

   25,002,590 

10,000,000

  

2.763% (LIBOR 3M + 0.080%), 8/16/2019d

   10,001,983 

Principal
Amount

  

Financials (43.3%)a

  Value 

$15,000,000

  

2.718% (LIBOR 3M + 0.110%), 9/6/2019d

  $15,001,587 
  

U.S. Bank NA

  

10,891,000

  

3.062% (LIBOR 3M + 0.480%), 10/28/2019d

   10,911,295 

20,000,000

  

2.713% (LIBOR 3M + 0.125%), 1/17/2020d

   20,008,792 

4,900,000

  

2.901% (LIBOR 3M + 0.320%), 1/24/2020d

   4,911,451 
  

U.S. Bank NA Ohio

  

25,000,000

  

2.717% (LIBOR 1M + 0.230%), 5/23/2019d

   25,002,013 

15,000,000

  

2.617% (LIBOR 1M + 0.140%), 7/3/2019d

   15,003,293 

15,000,000

  

2.747% (LIBOR 1M + 0.260%), 7/23/2019d

   15,005,371 

25,000,000

  

2.910%, 7/23/2019

   25,025,582 

10,000,000

  

2.910%, 7/23/2019

   10,010,228 
  

USAA Capital Corporation

  

8,715,000

  

2.125%, 6/3/2019b

   8,711,060 
  

Ventas Realty, LP

  

15,000,000

  

2.680%, 5/1/2019b

   14,998,915 

10,000,000

  

2.710%, 5/2/2019b

   9,998,552 

15,000,000

  

2.740%, 5/9/2019b

   14,990,156 

5,000,000

  

2.680%, 5/16/2019b

   4,994,118 
  

Victory Receivables Corporation

  

10,000,000

  

2.560%, 6/18/2019b

   9,965,768 
  

Wells Fargo Bank NA

  

10,000,000

  

1.750%, 5/24/2019

   9,994,800 

10,000,000

  

2.779% (LIBOR 1M + 0.300%), 6/3/2019d

   10,003,283 

15,000,000

  

2.831% (LIBOR 3M + 0.180%), 6/24/2019d

   15,005,510 

15,000,000

  

2.721% (LIBOR 3M + 0.140%), 7/11/2019d

   15,005,689 

10,000,000

  

2.738% (LIBOR 3M + 0.150%), 10/17/2019d

   10,009,565 

22,653,000

  

3.258% (LIBOR 3M + 0.650%), 12/6/2019d

   22,732,668 

15,000,000

  

2.704% (LIBOR 3M + 0.060%), 3/20/2020d

   15,000,019 

10,000,000

  

2.740% (FEDL 1M + 0.290%), 4/6/2020d

   10,000,913 
  

Welltower, Inc.

  

15,000,000

  

2.750%, 5/6/2019b

   14,993,457 

25,000,000

  

2.750%, 5/7/2019b

   24,987,264 

15,000,000

  

2.730%, 5/15/2019b

   14,983,500 

20,000,000

  

2.750%, 5/30/2019b

   19,955,000 
  

Westpac Banking Corporation

  

15,000,000

  

2.751% (LIBOR 3M + 0.100%), 5/24/2019b,d

   15,000,708 

10,000,000

  

2.764% (LIBOR 3M + 0.070%), 8/16/2019b,d

   10,001,696 

16,603,000

  

3.038% (LIBOR 3M + 0.430%), 3/6/2020d

   16,650,694 

15,763,000

  

2.964% (LIBOR 3M + 0.280%), 5/15/2020d

   15,795,548 
  

Westpac Banking Corporation of New York

  

10,000,000

  

2.779% (LIBOR 3M + 0.040%), 2/7/2020d

   9,999,989 

15,000,000

  

2.737% (LIBOR 3M + 0.040%), 2/11/2020d

   14,999,965 
 

 

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

 23 


SHORT-TERM RESERVE FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

 

Principal
Amount

  

Financials (43.3%)a

  Value 
  

2.750% (FEDL 1M + 0.300%),

  

$15,000,000

  

2/14/2020d

  $15,005,759 
    

 

 

 
  

Total

   2,324,903,495 
    

 

 

 

Principal
Amount

  

Foreign (3.0%)a

  Value 
  

Caisse d’Amortissement de la Dette Sociale

  

10,000,000

  

2.520%, 7/18/2019b

   9,944,437 
  

Erste Abwicklungsanstalt

  

30,000,000

  

2.567%, 6/3/2019b

   29,930,158 

25,000,000

  

2.540%, 7/29/2019b

   24,843,750 
  

Kells Funding, LLC

  

15,000,000

  

2.740%, 5/28/2019b,e

   14,971,218 

10,000,000

  

2.560%, 6/6/2019b,e

   9,974,522 

15,000,000

  

2.560%, 6/13/2019b,e

   14,954,368 

25,000,000

  

2.550%, 6/25/2019b,e

   24,902,039 

15,000,000

  

2.540%, 6/27/2019b,e

   14,938,979 

15,000,000

  

2.540%, 8/28/2019b,e

   14,872,000 
    

 

 

 
  

Total

   159,331,471 
    

 

 

 

Principal
Amount

  

Technology (2.1%)a

  Value 
  

Apple, Inc.

  
  

3.034% (LIBOR 3M + 0.300%),

  

4,075,000

  

5/6/2019d

   4,075,247 

10,000,000

  

2.670%, 6/17/2019b

   9,967,413 

5,000,000

  

2.640%, 6/25/2019b

   4,981,015 

15,000,000

  

2.620%, 6/26/2019b

   14,942,026 

22,600,000

  

2.611%, 9/17/2019b

   22,377,377 

13,305,000

  

2.939% (LIBOR 3M + 0.200%), 2/7/2020d

   13,323,126 

15,150,000

  

2.767% (LIBOR 3M + 0.070%), 5/11/2020d

   15,153,025 
  

Cisco Systems, Inc.

  

12,075,000

  

2.973% (LIBOR 3M + 0.340%), 9/20/2019d

   12,092,709 
  

Intel Corporation

  

14,800,000

  

2.777% (LIBOR 3M + 0.080%), 5/11/2020d

   14,810,295 
    

 

 

 
  

Total

   111,722,233 
    

 

 

 

Principal

Amount

  

Transportation (0.2%)a

  Value 
  

Canadian National Railway Company

  

10,000,000

  

2.740%, 7/10/2019b

   9,950,556 
    

 

 

 
  

Total

   9,950,556 
    

 

 

 

Principal
Amount

  

U.S. Government & Agencies
(3.3%)a

  Value 
  

Federal Farm Credit Bank

  

20,000,000

  

2.570% (FEDL 1M + 0.120%), 2/18/2020d

   20,004,636 

6,250,000

  

2.427% (LIBOR 1M + (0.060)%), 7/20/2020d

   6,244,332 

25,000,000

  

2.540% (FEDL 1M + 0.090%), 7/30/2020d

   24,993,190 

25,000,000

  

2.560% (USBMMY 3M + 0.160%), 1/19/2021d

   25,008,011 

25,000,000

  

2.519% (LIBOR 1M + 0.040%), 1/28/2021d

   24,993,811 

10,120,000

  

2.570% (FEDL 1M + 0.120%), 2/9/2021d

   10,115,585 

Principal
Amount

  

U.S. Government & Agencies (3.3%)a

  Value 
  

Federal Home Loan Bank

  

$5,000,000

  

2.387% (LIBOR 1M + (0.085)%), 9/9/2019d

  $4,998,594 

38,800,000

  

2.483% (LIBOR 1M + FLAT), 10/26/2020d

   38,774,715 
  

Overseas Private Investment Corporation

  

1,810,000

  

2.570%, 5/17/2019

   1,854,643 
  

U.S. Treasury Notes

  

6,245,000

  

2.460% (USBMMY 3M + 0.045%), 10/31/2020d

   6,240,504 

15,000,000

  

2.530% (USBMMY 3M + 0.115%), 1/31/2021d

   14,999,672 
    

 

 

 
  

Total

   178,227,693 
    

 

 

 

Principal
Amount

  

U.S. Municipals (2.3%)a

  Value 
  

Hennepin County, MN

  

15,000,000

  

2.670%, 5/10/2019

   14,996,550 
  

Massachusetts Educational Financing Auth.

  

6,500,000

  

2.520%, 6/5/2019

   6,498,245 
  

San Jose Financing Auth.

  

7,894,000

  

2.570%, 6/13/2019

   7,892,421 
  

State of California

  

10,000,000

  

2.630%, 5/6/2019

   9,999,000 

15,000,000

  

2.630%, 5/7/2019

   14,998,350 

19,030,000

  

2.570%, 5/23/2019

   19,027,526 
  

State of Tennessee

  

7,600,000

  

2.580%, 5/10/2019

   7,598,784 

10,000,000

  

2.820%, 5/22/2019

   9,997,000 

5,000,000

  

2.500%, 6/25/2019

   4,998,550 

26,663,000

  

2.600%, 8/8/2019

   26,645,403 
    

 

 

 
  

Total

   122,651,829 
    

 

 

 

Principal
Amount

  

Utilities (10.5%)a

  Value 
  

American Electric Power Company, Inc.

  

25,000,000

  

2.700%, 5/3/2019b

   24,994,542 

5,000,000

  

2.700%, 5/15/2019b

   4,994,479 

25,000,000

  

2.690%, 5/20/2019b

   24,962,680 
  

Centerpoint Energy, Inc.

  

5,000,000

  

2.710%, 5/2/2019b

   4,999,274 

20,000,000

  

2.710%, 5/21/2019b

   19,968,803 

21,200,000

  

2.740%, 5/22/2019b

   21,165,344 

6,900,000

  

2.750%, 5/23/2019b

   6,888,208 

10,709,000

  

2.740%, 5/29/2019b

   10,685,889 

25,000,000

  

2.780%, 6/5/2019b

   24,932,600 
  

Consolidated Edison, Inc.

  

1,660,000

  

2.600%, 5/1/2019b

   1,659,879 

15,000,000

  

2.650%, 5/3/2019b

   14,996,700 

15,000,000

  

2.700%, 5/7/2019b

   14,992,242 

5,000,000

  

2.630%, 5/8/2019b

   4,997,039 
  

DTE Electric Company

  

15,555,000

  

2.550%, 5/10/2019

   15,543,390 
  

Duke Energy Corporation

  

13,000,000

  

2.650%, 5/3/2019b

   12,997,162 

25,000,000

  

2.640%, 5/7/2019b

   24,987,215 

6,745,000

  

2.630%, 5/8/2019b

   6,741,053 

10,000,000

  

2.650%, 5/10/2019b

   9,992,675 
  

Enterprise Products Operating, LLC

  

15,000,000

  

2.680%, 5/24/2019b

   14,973,040 
 

 

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

 24 


SHORT-TERM RESERVE FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

 

Principal

Amount

 

Utilities (10.5%)a

 Value 
 

Florida Power & Light Company

 

$15,000,000

 

2.560%, 5/7/2019

 $14,992,183 
 

Long Island Power Auth.

 

25,150,000

 

2.530%, 6/5/2019

  25,140,695 
 

Magellan Midstream Partners, LP

 

5,788,000

 

2.640%, 5/3/2019b

  5,786,736 
 

Nextera Energy Capital Holdings

 

15,000,000

 

2.750%, 5/7/2019b

  14,992,329 

10,000,000

 

2.750%, 5/29/2019b

  9,978,258 

10,000,000

 

2.700%, 5/31/2019b

  9,976,741 

10,000,000

 

2.740%, 6/10/2019b

  9,969,079 
 

Oncor Electric Delivery Company, LLC

 

8,750,000

 

2.650%, 5/1/2019b

  8,749,364 

8,000,000

 

2.650%, 5/8/2019b

  7,995,319 

10,000,000

 

2.680%, 5/9/2019b

  9,993,413 

15,000,000

 

2.670%, 5/23/2019b

  14,974,173 

10,000,000

 

2.680%, 5/30/2019b

  9,977,500 
 

PPL Capital Funding, Inc.

 

1,115,000

 

2.680%, 5/1/2019b

  1,114,919 

12,736,000

 

2.670%, 5/6/2019b

  12,730,422 

10,000,000

 

2.680%, 5/8/2019b

  9,994,149 

9,522,000

 

2.700%, 5/15/2019b

  9,511,486 
 

TransCanada American Investments, Ltd.

 

3,000,000

 

2.700%, 6/18/2019b

  2,988,861 
 

TransCanada PipeLines, Ltd.

 

24,000,000

 

2.775%, 5/6/2019b

  23,989,488 

10,000,000

 

2.810%, 5/8/2019b

  9,994,149 

6,710,000

 

2.840%, 5/13/2019b

  6,703,591 

4,800,000

 

2.830%, 5/16/2019b

  4,794,332 

15,000,000

 

2.730%, 5/23/2019b

  14,974,173 

5,000,000

 

2.780%, 5/28/2019b

  4,989,504 

10,000,000

 

2.870%, 5/29/2019b

  9,978,258 

6,700,000

 

2.770%, 6/12/2019b

  6,678,256 
 

Virginia Electric & Power Company

 

10,000,000

 

2.630%, 5/3/2019

  9,997,775 

23,000,000

 

2.680%, 6/10/2019

  22,928,620 
 

Xcel Energy, Inc.

 

5,305,000

 

2.600%, 5/1/2019b

  5,304,615 
  

 

 

 
 

Total

  564,670,602 
  

 

 

 
 

Total Investments

(cost $5,404,950,095) 100.9%

 $5,405,163,196 
  

 

 

 
 

Other Assets and Liabilities, Net (0.9)%

  (47,155,663
  

 

 

 
 

Total Net Assets 100.0%

 $5,358,007,533 
  

 

 

 
a

The interest rate shown reflects the yield, coupon rate or the discount rate at the date of purchase.

b

Denotes securities sold under Rule 144A of the Securities Act of 1933, which exempts them from registration. These securities may be resold to other dealers in the program or to other qualified institutional buyers. As of April 30, 2019, the value of these investments was $3,194,851,316 or 59.6% of total net assets.

c

Denotes investments purchased on a when-issued or delayed delivery basis.

d

Denotes variable rate securities. The rate shown is as of April 30, 2019. The rates of certain variable rate securities are based on a published reference rate and spread; these may vary by security and the reference rate and spread are indicated in their description. The rates of other variable rate securities are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description.

e

Denotes investments that benefit from credit enhancement or liquidity support provided by a third party bank, institution or government.

 

Definitions:

 

    

Auth. - Authority

Ser. -    Series

Reference Rate Index:

FEDL 1M

  -  

Federal Funds 1 Month Rate

LIBOR 1M

  -  

ICE Libor USD Rate 1 Month

LIBOR 3M

  -  

ICE Libor USD Rate 3 Month

SOFRRATE

  -  

Secured Overnight Financing Rate

USBMMY 3M

  -  

U. S. Treasury Bill Rate 3 Month Money Market Yield

Unrealized Appreciation (Depreciation)

Gross unrealized appreciation and depreciation of investments of the portfolio as a whole (including derivatives, if any), based on cost for federal income tax purposes, were as follows:

 

Gross unrealized appreciation

  $508,655 

Gross unrealized depreciation

   (295,554
  

 

 

 

Net unrealized appreciation (depreciation)

  $213,101 

Cost (includes notional principal amount of derivatives, if any) for federal income tax purposes

  $5,404,950,095 
 

 

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

 25 


SHORT-TERM RESERVE FUND

Schedule of Investments as of April 30, 2019

(unaudited)

 

Fair Valuation Measurements

The following table is a summary of the inputs used, as of April 30, 2019, in valuing Short-Term Reserve Fund’s assets carried at fair value or amortized cost, which approximates fair value.

 

Investments in Securities

  Total   Level 1   Level 2   Level 3 

Asset-Backed Securities

   307,946,061        307,946,061     

Basic Materials

   148,249,090        148,249,090     

Capital Goods

   244,860,294        244,860,294     

Communications Services

   146,507,231        146,507,231     

Consumer Cyclical

   334,123,828        334,123,828     

ConsumerNon-Cyclical

   530,116,809        530,116,809     

Energy

   221,902,004        221,902,004     

Financials

   2,324,903,495        2,324,903,495     

Foreign

   159,331,471        159,331,471     

Technology

   111,722,233        111,722,233     

Transportation

   9,950,556        9,950,556     

U.S. Government & Agencies

   178,227,693        178,227,693     

U.S. Municipals

   122,651,829        122,651,829     

Utilities

   564,670,602        564,670,602     
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Investments at Value

  $5,405,163,196   $   $5,405,163,196   $ 
  

 

 

   

 

 

   

 

 

   

 

 

 

There were no significant transfers between Levels during the period ended April 30, 2019. Transfers between Levels are identified as of the end of the period.

The accompanying Notes to Financial Statements are an integral part of this schedule.

 

26


THRIVENT CORE FUNDS

STATEMENTOF ASSETSAND LIABILITIES

 

As of April 30, 2019 (unaudited)

  Emerging Markets
Debt Fund
  International
Equity Fund
  Low Volatility
Equity Fund
   Short-Term
Reserve Fund
 

Assets

      

Investments at cost

  $847,524,224  $944,845,558  $882,451,689   $5,404,950,095 

Investments in unaffiliated securities at value (#)

   779,857,092   919,053,843   983,522,567    5,405,163,196 

Investments in affiliated securities at value

   44,754,765   35,622,622   1,819,230     

Cash

   7,172   898,217(a)        49,290 

Dividends and interest receivable

   8,436,885   5,242,080   686,007    7,942,110 

Prepaid expenses

   5,652   6,149   6,296    18,091 

Prepaid trustee fees

   971   971   971    971 

Receivable for:

      

Investments sold

   3,010,312   1,556,829        

Total Assets

   836,072,849   962,380,711   986,035,071    5,413,173,658 

Liabilities

      

Distributions payable

             11,700,541 

Accrued expenses

   20,315   46,935   21,341    39,442 

Payable for:

      

Investments purchased

   41,320,314   1,852,772       16,913,913 

Investments purchased on a delayed delivery basis

             26,500,000 

Return of collateral for securities loaned

   7,629,243   33,348,904        

Administrative service fees

   16,890   19,586   20,244    7,500 

Transfer agent fees

   2,500   2,500   2,500    2,500 

Director deferred compensation

   824   824   810    2,229 

Commitments and contingent liabilities^

              

Total Liabilities

   48,990,086   35,271,521   44,895    55,166,125 

Net Assets

      

Capital stock (beneficial interest)

   813,068,092   953,444,200   858,564,846    5,357,837,121 

Distributable earnings/(accumulated loss)

   (25,985,329  (26,335,010  127,425,330    170,412 

Total Net Assets

  $787,082,763  $927,109,190  $985,990,176   $5,358,007,533 

Shares of beneficial interest outstanding

   83,224,833   96,857,967   86,197,157    535,784,178 

Net asset value per share

  $9.46  $9.57  $11.44   $10.00 

(#) Includes securities on loan of

  $7,337,507  $27,512,388  $   $ 

 

(a)

Includes foreign currency holdings of $898,217 (cost $897,331).

^

Commitments and contingent liabilities accrual. Additional information can be found in the accompanying Notes to Financial Statements.

The accompanying Notes to Financial Statements are an integral part of this statement.

 

27


THRIVENT CORE FUNDS

STATEMENTOF OPERATIONS

 

For the six months ended April 30, 2019 (unaudited)

  Emerging Markets
Debt Fund
  International
Equity Fund
  Low Volatility
Equity Fund
  Short-Term
Reserve Fund
 

Investment Income

     

Dividends

  $  $18,460,612  $10,225,994  $ 

Interest

   16,495,486   465      65,816,779 

Affiliated income from securities loaned, net

   8,457   135,381   115,388    

Income from affiliated investments

   93,246   29,686   19,004    

Foreign tax withholding

      (1,569,792  (4,532   

Total Investment Income

   16,597,189   17,056,352   10,355,854   65,816,779 

Expenses

     

Administrative service fees

   97,470   111,566   114,167   45,000 

Amortization of offering costs

      212   2,419    

Audit and legal fees

   17,578   17,918   18,418   24,972 

Custody fees

   5,976   86,760   4,407   51,615 

Insurance expenses

   3,013   3,335   3,307   10,512 

Printing and postage expenses

   2,625   3,128   1,271   2,267 

SEC and state registration expenses

   2,683   16,828   4,068    

Transfer agent fees

   15,000   15,000   15,000   15,000 

Directors’ fees

   3,516   3,516   3,516   3,498 

Pricing service fees

   4,818   6,205   554   34,873 

Other expenses

   6,750   6,672   6,214   6,310 

Total Expenses Before Reimbursement

   159,429   271,140   173,341   194,047 

Less:

     

Total Net Expenses

   159,429   271,140   173,341   194,047 

Net Investment Income/(Loss)

   16,437,760   16,785,212   10,182,513   65,622,732 

Realized and Unrealized Gains/(Losses)

     

Net realized gains/(losses) on:

     

Investments

   (951,296  (35,716,034  18,288,641   (30,001

Foreign currency transactions

      (110,286      

Change in net unrealized appreciation/(depreciation) on:

     

Investments

   33,014,090   82,941,796   83,846,349   888,441 

Foreign currency transactions

      (19,006      

Net Realized and Unrealized Gains/(Losses)

   32,062,794   47,096,470   102,134,990   858,440 

Net Increase/(Decrease) in Net Assets Resulting From Operations

  $48,500,554  $63,881,682  $112,317,503  $66,481,172 

The accompanying Notes to Financial Statements are an integral part of this statement.

 

28


THRIVENT CORE FUNDS

STATEMENTOF CHANGESIN NET ASSETS

 

    Emerging Markets Debt Fund  International Equity Fund 

For the periods ended

  4/30/2019
(unaudited)
  10/31/2018  4/30/2019
(unaudited)
  10/31/2018(a) 

Operations

     

Net investment income/(loss)

  $16,437,760  $26,455,691  $16,785,212  $26,126,324 

Net realized gains/(losses)

   (951,296  (2,183,543  (35,826,320  (13,331,863

Change in net unrealized appreciation/(depreciation)

   33,014,090   (50,984,782  82,922,790   (73,168,153

Net Change in Net Assets Resulting From Operations

   48,500,554   (26,712,634  63,881,682   (60,373,692

Distributions to Shareholders

     

From net investment income/net realized gains

   (16,464,809  (26,395,545  (28,842,752  (1,001,317

Total Distributions to Shareholders

   (16,464,809  (26,395,545  (28,842,752  (1,001,317

Capital Stock Transactions

     

Sold

   54,351,581   183,634,669   90,000,000   858,700,000 

Distributions reinvested

   16,464,809   7,978,341   28,842,752   1,001,317 

In-kind contributions

      124,931,300       

Redeemed

      (960,000  (25,000,000  (98,800

Total Capital Stock Transactions

   70,816,390   315,584,310   93,842,752   859,602,517 

Net Increase/(Decrease) in Net Assets

   102,852,135   262,476,131   128,881,682   798,227,508 

Net Assets, Beginning of Period

   684,230,628   421,754,497   798,227,508    

Net Assets, End of Period

  $787,082,763  $684,230,628  $927,109,190  $798,227,508 

Capital Stock Share Transactions

     

Sold

   5,739,984   19,060,690   10,158,014   85,911,466 

Distributions reinvested

   1,767,808   874,746   3,393,265   98,749 

In-kind contributions

      13,123,036       

Redeemed

      (105,048  (2,693,527  (10,000
  

 

 

  

 

 

  

 

 

  

 

 

 

Total Capital Stock Share Transactions

   7,507,792   32,953,424   10,857,752   86,000,215 
  

 

 

  

 

 

  

 

 

  

 

 

 

 

(a)

For the period from November 14, 2017 (inception) through October 31, 2018.

The accompanying Notes to Financial Statements are an integral part of this statement.

 

29


THRIVENT CORE FUNDS

STATEMENTOF CHANGESIN NET ASSETSCONTINUED

 

    Low Volatility Equity Fund  Short-Term Reserve Fund 
   4/30/2019     4/30/2019    

For the periods ended

  (unaudited)  10/31/2018(a)  (unaudited)  10/31/2018 

Operations

     

Net investment income/(loss)

  $10,182,513  $10,615,382  $65,622,732  $99,124,768 

Net realized gains/(losses)

   18,288,641   19,013,033   (30,001  (17,348

Change in net unrealized appreciation/(depreciation)

   83,846,349   19,043,759   888,441   (538,217

Net Change in Net Assets Resulting From Operations

   112,317,503   48,672,174   66,481,172   98,569,203 

Distributions to Shareholders

     

From net investment income/net realized gains

   (33,567,673     (65,622,732  (99,185,270

Total Distributions to Shareholders

   (33,567,673     (65,622,732  (99,185,270

Capital Stock Transactions

     

Sold

      825,099,999   5,997,396,660   12,052,138,996 

Distributions reinvested

   33,567,673          

Redeemed

      (99,500  (5,494,796,349  (12,185,182,945

Total Capital Stock Transactions

   33,567,673   825,000,499   502,600,311   (133,043,949

Net Increase/(Decrease) in Net Assets

   112,317,503   873,672,673   503,458,751   (133,660,016

Net Assets, Beginning of Period

   873,672,673      4,854,548,782   4,988,208,798 

Net Assets, End of Period

  $985,990,176  $873,672,673  $5,358,007,533  $4,854,548,782 

Capital Stock Share Transactions

     

Sold

      82,874,125   599,739,666   1,205,213,900 

Distributions reinvested

   3,333,032          

Redeemed

      (10,000  (549,479,635  (1,218,518,295
  

 

 

  

 

 

  

 

 

  

 

 

 

Total Capital Stock Share Transactions

   3,333,032   82,864,125   50,260,031   (13,304,395
  

 

 

  

 

 

  

 

 

  

 

 

 

 

(a)

For the period from February 28, 2018 (inception) through October 31, 2018

The accompanying Notes to Financial Statements are an integral part of this statement.

 

30


THRIVENT CORE FUNDS

NOTESTO FINANCIAL STATEMENTS

April 30, 2019

(unaudited)

 

1) ORGANIZATION

Thrivent Core Funds (the “Trust”) was organized as a Delaware statutory trust on March 18, 2016, and is registered as anopen-end management investment company under the Investment Company Act of 1940. The Trust is divided into four separate series, each with its own investment objective and policies (each, a “Fund”). The four series of the Trust are Thrivent Core Emerging Markets Debt Fund, which isnon-diversified, and Thrivent Core International Equity Fund, Thrivent Core Low Volatility Equity Fund, and Thrivent Core Short-Term Reserve Fund, which are diversified. Thrivent Core Short-Term Reserve Fund serves as a cash sweep vehicle for Thrivent Mutual Funds, Thrivent Series Fund, Inc., and Thrivent Church Loan and Income Fund.

The Funds are each an investment company which follows the accounting and reporting guidance of the Financial Accounting Standard Board (FASB) Accounting Standard Codification Topic 946 – Financial Services – Investment Companies.

Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts with vendors and others that provide general damage clauses. The Trust’s maximum exposure under these contracts is unknown, as this would involve future claims that may be made against the Trust. However, based on experience, the Trust expects the risk of loss to be remote.

(2) SIGNIFICANT ACCOUNTING POLICIES

Valuation of Investments– Securities traded on U.S. or foreign securities exchanges or included in a national market system are valued at the last sale price on the principal exchange or the official closing price of the national market system.Over-the-counter securities and listed securities for which no price is readily available are valued at the current bid price considered best to represent the value at that time. Security prices are based on quotes that are obtained from an independent pricing service approved by the Trust’s Board of Trustees (“Board”). The pricing service, in determining values of fixed-income securities, takes into consideration such factors as current quotations by broker/dealers, coupon, maturity, quality, type of issue, trading characteristics, and other yield and risk factors it deems relevant in determining valuations. Securities which cannot be valued by the approved pricing service are valued using valuations obtained from dealers that make markets in the securities. Investments in open-ended mutual funds are valued at the net asset value at the close of each business day.

The Board has delegated responsibility for daily valuation of the Funds’ securities to the investment adviser, Thrivent Asset Management, LLC (the “Adviser”). The Adviser has formed a Valuation Committee (“Committee”) that is responsible for

overseeing the Funds’ valuation policies in accordance with Valuation Policies and Procedures. The Committee meets on a monthly and on anas-needed basis to review price challenges, price overrides, stale prices, shadow prices, manual prices, money market pricing, international fair valuation, and other securities requiring fair valuation.

The Committee monitors for significant events occurring prior to the close of trading on the New York Stock Exchange that could have a material impact on the value of any securities that are held by the Funds. Examples of such events include trading halts, national news/events, and issuer-specific developments. If the Committee decides that such events warrant using fair value estimates, the Committee will take such events into consideration in determining the fair value of such securities. If market quotations or prices are not readily available or determined to be unreliable, the securities will be valued at fair value as determined in good faith pursuant to procedures adopted by the Board.

In accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the various inputs used to determine the fair value of the Funds’ investments are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities, typically included in this level are U.S. equity securities, futures, options and registered investment company funds. Level 2 includes other significant observable inputs such as quoted prices for similar securities, interest rates, prepayment speeds and credit risk, typically included in this level are fixed income securities, international securities, swaps and forward contracts. Level 3 includes significant unobservable inputs such as the Adviser’s own assumptions and broker evaluations in determining the fair value of investments. Of the Level 3 securities, those for which market values were not readily available or were deemed unreliable were fair valued as determined in good faith under procedures established by the Board. The valuation levels are not necessarily an indication of the risk associated with investing in these securities or other investments. Investments measured using net asset value per share as a practical expedient for fair value and that are not publiclyavailable-for-sale are not categorized within the fair value hierarchy.

Valuation of International Securities – The Funds value certain foreign securities traded on foreign exchanges that close prior to the close of the New York Stock Exchange using a fair value pricing service. The fair value pricing service uses a multi-factor model that may take into account the local close, relevant general and sector indices, currency fluctuation, prices of other securities (including ADRs, New York registered shares, and ETFs), and futures, as applicable, to determine price adjustments for each security in order

 

 

31


THRIVENT CORE FUNDS

NOTESTO FINANCIAL STATEMENTS

April 30, 2019

(unaudited)

 

to reflect the effects of post-closing events. The Board has authorized the Adviser to make fair valuation determinations pursuant to policies approved by the Board.

Foreign Currency Translation – The accounting records of each Fund are maintained in U.S. dollars. Securities and other assets and liabilities that are denominated in foreign currencies are translated into U.S. dollars at the daily closing rates of exchange.

Foreign currency amounts related to the purchase or sale of securities and income and expenses are translated at the exchange rate on the transaction date. Net realized and unrealized currency gains and losses are recorded from closed currency contracts, disposition of foreign currencies, exchange gains or losses between the trade date and settlement date on securities transactions, and other translation gains or losses on dividends, interest income and foreign withholding taxes. The Funds do not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments in the Statement of Operations.

For federal income tax purposes, the Funds treat the effect of changes in foreign exchange rates arising from actual foreign currency transactions and the changes in foreign exchange rates between the trade date and settlement date as ordinary income.

Federal Income Taxes – No provision has been made for income taxes because each Fund’s policy is to qualify as a regulated investment company under the Internal Revenue Code and distribute substantially all investment company taxable income and net capital gain on a timely basis. It is also the intention of each Fund to distribute an amount sufficient to avoid imposition of any federal excise tax. The Funds, accordingly, anticipate paying no federal taxes and no federal tax provision was recorded. Each Fund is treated as a separate taxable entity for federal income tax purposes. Funds may utilize earnings and profits distributed to shareholders on the redemption of shares as part of the dividends paid deduction.

GAAP requires management of the Funds (i.e., the Adviser) to make additional tax disclosures with respect to the tax effects of certain income tax positions, whether those positions were taken on previously filed tax returns or are expected to be taken on future returns. These positions must meet a “more likely than not” standard that, based on the technical merits of the position, would have a greater than 50 percent likelihood of being sustained upon examination. In evaluating whether a tax position has met themore-likely-than-not recognition threshold, the Adviser must presume that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information.

The Adviser analyzed all open tax years, as defined by the statute of limitations, for all major jurisdictions. Open tax years are those that are open for examination by taxing authorities. Major jurisdictions for the Funds include U.S. Federal, Minnesota, Wisconsin, and Massachusetts as well as certain foreign countries. As of April 30, 2019, open U.S. Federal, Minnesota, Wisconsin and Massachusetts tax years include tax years ended October 31, 2016 through 2018.The Funds have no examinations in progress and none are expected at this time.

As of April 30, 2019, the Adviser has reviewed all open tax years and major jurisdictions and concluded that there is no effect to each Fund’s tax liability, financial position or results of operations. There is no tax liability resulting from unrecognized tax benefits related to uncertain income tax positions taken or expected to be taken in future tax returns. The Funds also are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months.

Expenses and Income– Estimated expenses are accrued daily. The Funds are charged for those expenses that are directly attributable to them. Expenses that are not directly attributable to a Fund are allocated among all appropriate Funds in proportion to their respective net assets, number of shareholder accounts or other reasonable basis.

Interest income is accrued daily on all debt securities, as is accretion of market discount and original issue discount and amortization of premium. Paydown gains and losses on mortgage- and asset-backed securities are recorded as components of interest income. Dividend income and capital gain distributions are recorded on theex-dividend date. However, certain dividends from foreign securities are recorded as soon as the information is available to the Funds.Non-cash income, if any, is recorded at the fair market value of the securities received.

Distributions to Shareholders– Net investment income is distributed to each shareholder as a dividend. Dividends from Emerging Markets Debt Fund are declared and distributed monthly. Dividends from International Equity Fund and Low Volatility Equity Fund are declared and distributed annually.Dividends from Short-Term Reserve Fund are declared daily and distributed monthly. Net realized gains from securities transactions, if any, are distributed at least annually after the close of the fiscal year.

Derivative Financial Instruments – Certain Funds may invest in derivatives. Derivatives, a category that includes options, futures, swaps, foreign currency forward contracts and hybrid instruments, are financial instruments whose value is derived from another security, an index or a currency. Each applicable Fund may use derivatives for hedging (attempting to offset a potential loss in one position by

 

 

32


THRIVENT CORE FUNDS

NOTESTO FINANCIAL STATEMENTS

April 30, 2019

(unaudited)

 

establishing an interest in an opposite position). This includes the use of currency-based derivatives to manage the risk of its positions in foreign securities. Each applicable Fund may also use derivatives for replication of a certain asset class or speculation (investing for potential income or capital gain). These contracts may be transacted on an exchange orover-the-counter (“OTC”).

A derivative may incur a mark to market loss if the value of the derivative decreases due to an unfavorable change in the market rates or values of the underlying derivative. Losses can also occur if the counterparty does not perform under the derivative. A Fund’s risk of loss from the counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by such Fund. With exchange traded futures and centrally cleared swaps, there is minimal counterparty credit risk to the Funds because the exchange’s clearinghouse, as counterparty to such derivatives, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the derivative; thus, the credit risk is limited to the failure of the clearinghouse. However, credit risk still exists in exchange traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a broker’s customer accounts. While brokers are required to segregate customer margin from their own assets, in the event that a broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the broker for all its clients, U.S. bankruptcy laws will typically allocate that shortfall on apro-rata basis across all the broker’s customers, potentially resulting in losses to the Funds. Using derivatives to hedge can guard against potential risks, but it also adds to the Funds’ expenses and can eliminate some opportunities for gains. In addition, a derivative used for mitigating exposure or replication may not accurately track the value of the underlying asset. Another risk with derivatives is that some types can amplify a gain or loss, potentially earning or losing substantially more money than the actual cost of the derivative.

In order to define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives and foreign exchange contracts and typically includes, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, each Fund may, under certain circumstances, offset with the counterparty certain derivatives’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default(close-out

netting) including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy and insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.

Collateral and margin requirements vary by type of derivative. Margin requirements are established by the broker or clearinghouse for exchange traded and centrally cleared derivatives (futures, options, and centrally cleared swaps). Brokers can ask for margining in excess of the minimum in certain situations. Collateral terms are contract specific for OTC derivatives (foreign currency exchange contracts, options, swaps). For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark to market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty. For financial reporting purposes,non-cash collateral that has been pledged to cover obligations of the Fund has been noted in the Schedule of Investments. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

Options – Certain Funds may buy put and call options and write put and covered call options. The Funds intend to use such derivative instruments as hedges to facilitate buying or selling securities or to provide protection against adverse movements in security prices or interest rates. The Funds may also enter into options contracts to protect against adverse foreign exchange rate fluctuations. Option contracts are valued daily and unrealized appreciation or depreciation is recorded. A Fund will realize a gain or loss upon expiration or closing of the option transaction. When an option is exercised, the proceeds upon sale for a written call option or the cost of a security for purchased put and call options is adjusted by the amount of premium received or paid.

Buying put options tends to decrease a Fund’s exposure to the underlying security while buying call options tends to increase a Fund’s exposure to the underlying security. The risk associated with purchasing put and call options is limited to the premium paid. There is no significant counterparty risk on exchange-traded options as the exchange guarantees the contract against default. Writing put options tends to increase a Fund’s exposure to the underlying security while writing call options tends to decrease a Fund’s exposure to the underlying security. The writer of an option has no control over whether the underlying security may be bought or sold, and therefore bears the market risk of an unfavorable change in the price of the underlying security. The counterparty risk for purchased

 

 

33


THRIVENT CORE FUNDS

NOTESTO FINANCIAL STATEMENTS

April 30, 2019

(unaudited)

 

options arises when a Fund has purchased an option, exercises that option, and the counterparty doesn’t buy from the Fund or sell to the Fund the underlying asset as required. In the case where a Fund has written an option, the Fund doesn’t have counterparty risk. Counterparty risk on purchasedover-the-counter options is partially mitigated by the Fund’s collateral posting requirements. As the option increases in value to the Fund, the Fund receives collateral from the counterparty. Risks of loss may exceed amounts recognized on the Statement of Assets and Liabilities.

Futures Contracts – Certain Funds may use futures contracts to manage the exposure to interest rate and market or currency fluctuations. Gains or losses on futures contracts can offset changes in the yield of securities. When a futures contract is opened, cash or other investments equal to the required “initial margin deposit” are held on deposit with and pledged to the broker. Additional securities held by the Funds may be earmarked to cover open futures contracts. The futures contract’s daily change in value (“variation margin”) is either paid to or received from the broker, and is recorded as an unrealized gain or loss. When the contract is closed, realized gain or loss is recorded equal to the difference between the value of the contract when opened and the value of the contract when closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. Exchange-traded futures have no significant counterparty risk as the exchange guarantees the contracts against default.

Foreign Currency Forward Contracts – In connection with purchases and sales of securities denominated in foreign currencies, certain Funds may enter into foreign currency forward contracts. Additionally, the Funds may enter into such contracts to mitigate currency and counterparty exposure to other foreign-currency-denominated investments. These contracts are recorded at value and the related realized and change in unrealized foreign exchange gains and losses are included in the Statement of Operations. In the event that counterparties fail to settle these forward contracts, the Funds could be exposed to foreign currency fluctuations. Foreign currency contracts are valued daily and unrealized appreciation or depreciation is recorded daily as the difference between the contract exchange rate and the closing forward rate applied to the face amount of the contract. A realized gain or loss is recorded at the time a forward contract is closed. These contracts areover-the-counter and the Fund is exposed to counterparty risk equal to the discounted net amount of payments to the Fund.

Swap Agreements – Certain Funds may enter into swap transactions, which involve swapping one or more investment characteristics of a security or a basket of securities with another party. Such transactions include market risk, risk of default by the other party to the transaction, risk of

imperfect correlation and manager risk and may involve commissions or other costs. Swap transactions generally do not involve delivery of securities, other underlying assets or principal. Accordingly, the risk of loss with respect to swap transactions is generally limited to the net amount of payments that the Fund is contractually obligated to make, or in the case of the counterparty defaulting, the net amount of payments that the Fund is contractually entitled to receive. Risks of loss may exceed amounts recognized on the Statement of Assets and Liabilities. If there is a default by the counterparty, the Fund may have contractual remedies pursuant to the agreements related to the transaction. The contracts are valued daily and unrealized appreciation or depreciation is recorded. Swap agreements are valued at the clearinghouse end of day prices as furnished by an independent pricing service. The pricing service takes into account such factors as swap curves, default probabilities, recent trades, recovery rates and other factors it deems relevant in determining valuations. Daily fluctuations in the value of the centrally cleared credit default contracts are recorded in variation margin in the Statement of Assets and Liabilities and recorded as unrealized gain or loss. The Fund accrues for the periodic payment and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount recorded as realized gains or losses in the Statement of Operations. Receipts and payments received or made as a result of a credit event or termination of the contract are also recognized as realized gains or losses in the Statement of Operations. Collateral, in the form of cash or securities, may be required to be held with the Fund’s custodian, or a third party, in connection with these agreements. Certain swap agreements areover-the-counter and the Fund is exposed to counterparty risk, which is the discounted net amount of payments owed to the Fund. This risk is partially mitigated by the Fund’s collateral posting requirements. As the swap increases in value to the Fund, the Fund receives collateral from the counterparty. Certain interest rate and credit default index swaps must be cleared through a clearinghouse or central counterparty.

Credit Default Swaps – A credit default swap is a swap agreement between two parties to exchange the credit risk of a particular issuer, basket of securities or reference entity. In a credit default swap transaction, a buyer pays periodic fees in return for payment by the seller which is contingent upon an adverse credit event occurring in the underlying issuer or reference entity. The seller collects periodic fees from the buyer and profits if the credit of the underlying issuer or reference entity remains stable or improves while the swap is outstanding, but the seller in a credit default swap contract would be required to pay the amount of credit loss, determined as specified in the agreement, to the buyer in the event of an adverse credit event in the reference entity. A buyer of a credit default swap is said to buy protection

 

 

34


THRIVENT CORE FUNDS

NOTESTO FINANCIAL STATEMENTS

April 30, 2019

(unaudited)

 

whereas a seller of a credit default swap is said to sell protection. The Funds may be either the protection seller or the protection buyer.

Certain Funds enter into credit default derivative contracts directly through credit default swaps (CDS) or through credit default swap indices (“CDX Indices”). CDX Indices are static pools of equally weighted credit default swaps referencing corporate bonds and/or loans designed to provide diversified credit exposure to these asset classes. Funds sell default protection and assume long-risk positions in individual credits or indices. Index positions are entered into to gain exposure to the corporate bond and/or loan markets in a cost-efficient and diversified structure. In the event that a position defaults, by going into bankruptcy and failing to pay interest or principal

on borrowed money, within any given CDX Index held, the maximum potential amount of future payments required would be equal to thepro-rata share of that position within the index based on the notional amount of the index. In the event of a default under a CDS contract the maximum potential amount of future payments would be the notional amount. For CDS, the default events could be bankruptcy and failing to pay interest or principal on borrowed money or a restructuring. A restructuring is a change in the underlying obligations which would include reduction in interest or principal, maturity extension and subordination to other obligations.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.

 

 

The following table presents the gross and net information about liabilities subject to master netting arrangements, as presented in the Statement of Assets and Liabilities:

 

               

Gross Amounts Not Offset in the

Statement of Assets and Liabilities

     

Fund

  Gross Amounts
of Recognized
Liabilities
   Gross Amounts
Offset
   Net Amounts
of Recognized
Liabilities
   Financial
Instruments
   Cash Collateral
Pledged
   Non-Cash
Collateral
Pledged(**)
   Net Amount 

Emerging Markets Debt Securities Lending

   7,629,243        7,629,243    7,337,507            291,736(^)  

International Equity
Securities Lending

   33,348,904        33,348,904    27,512,388            5,836,516(^)  

 

(**)

Excess of collateral pledged to the counterparty may not be shown for financial reporting purposes.

(^)

Net securities lending amounts represent the net amount payable to the counterparty in the event of a default.

 

Securities Lending – The Trust has entered into a Securities Lending Agreement (the “Agreement”) with Goldman Sachs Bank USA doing business as Goldman Sachs Agency Lending (“GSAL”) pursuant to which GSAL provides securities lending services. The Agreement authorizes GSAL to lend securities to authorized borrowers on behalf of the Funds. Pursuant to the Agreement, loaned securities are typically initially collateralized equal to at least 102% for U.S. securities and 105% fornon-U.S. securities of the market value of the loaned securities. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. Any additional collateral is adjusted and settled on the next business day. The Trust has the ability to recall the loans at any time and could do so in order to vote proxies or sell the loaned securities.All cash collateral received is invested in Thrivent Cash Management Trust. The Funds receive dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. Amounts earned on investments in Thrivent Cash Management Trust, net of rebates, fees paid to GSAL for services provided and any other securities lending expenses, are included in income from securities loaned on the Statement of Operations. By investing any cash collateral

it receives in these transactions, a Fund could realize additional gains or losses. If the borrower fails to return the securities or the invested collateral has declined in value, the Fund could lose money. Generally, in the event of borrower default, the Fund has the right to use the collateral to offset any losses incurred. However, in the event the Fund is delayed or prevented from exercising its right to dispose of the collateral, there may be a potential loss. Some of these losses may be indemnified by the lending agent.

As of April 30, 2019, the value of securities on loan is as follows:

 

Fund

  Securities on Loan 

Emerging Markets Debt

  $7,337,507 

International Equity

   27,512,388 

When-Issued and Delayed Delivery Transactions – The Funds may purchase or sell securities on a when-issued or delayed delivery basis. These transactions involve a commitment by the Funds to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed delivery purchases are outstanding, the Funds will designate liquid assets in an amount sufficient to meet the purchase price. When purchasing a security on a delayed

 

 

35


THRIVENT CORE FUNDS

NOTES TO FINANCIAL STATEMENTS

April 30, 2019

(unaudited)

 

delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and take such fluctuations into account when determining its net asset value. A Fund may dispose of a delayed delivery transaction after it is entered into, and may sell when-issued securities before they are delivered, which may result in a capital gain or loss. When a Fund has sold a security on a delayed delivery basis, a Fund does not participate in future gains and losses with respect to the security.

Repurchase Agreements – A Fund may engage in repurchase agreement transactions in pursuit of its investment objective. A repurchase agreement consists of a purchase and a simultaneous agreement to resell an investment for later delivery at an agreed upon price and rate of interest. The Funds use a third-party custodian to maintain the collateral. If the original seller of a security subject to a repurchase agreement fails to repurchase the security at the agreed upon time, a Fund could incur a loss due to a drop in the value of the security during the time it takes the Fund to either sell the security or take action to enforce the original seller’s agreement to repurchase the security. Also, if a defaulting original seller filed for bankruptcy or became insolvent, disposition of such security might be delayed by pending legal action. The Funds may only enter into repurchase agreements with banks and other recognized financial institutions such as broker/dealers that are found by the Adviser to be creditworthy. During the six months ended April 30, 2019, the Funds did not engage in this type of investment.

Loan Commitments – Certain Funds may enter into loan commitments, which generally have interest rates which are reset daily, monthly, quarterly or semi-annually by reference to a base lending rate, plus a premium. These base rates are primarily the London-Interbank Offered Rate (“LIBOR”), and secondarily the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit (“CD”) rate or other base lending rates used by commercial lenders. Loan commitments often require prepayments from excess cash flows or allow the borrower to repay at its election. The rate at which the borrower repays cannot be predicted with accuracy. Therefore, the remaining maturity may be considerably less than the stated maturity shown in the Schedule of Investments.

All or a portion of these loan commitments may be unfunded. A Fund is obligated to fund these commitments at the borrower’s discretion; therefore, the Fund must have funds sufficient to cover its contractual obligation. These unfunded loan commitments, which are marked to market daily, are presented in the Schedule of Investments. During the year ended April 30, 2019, none of the Funds engaged in these types of investments.

Loss Contingencies – In the event of adversary action proceedings where a Fund is a defendant, a loss contingency will not be accrued as a liability until the amount of potential damages and the likelihood of loss can be reasonably estimated.

Accounting Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from these estimates.

Amortization of Offering Costs – The offering costs referenced in the Statement of Operations for each of International Equity Fund and Low Volatility Equity Fund are costs incurred by the Fund in order to establish it for sale. These costs generally include any legal costs associated with registering the Fund.These costs are amortized over a period of 12 months from inception.

Recent Accounting Pronouncements —

Premium Amortization on Purchased Callable Debt Securities

In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)No. 2017-08 Premium Amortization on Purchased Callable Debt Securities.ASUNo. 2017-08 updates the accounting standards to shorten the amortization period for certain purchased callable debt securities, held at a premium, to be amortized to the earliest call date. The update applies to securities with explicit,non-contingent call features that are callable at fixed prices and on preset dates. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption of these amendments is allowed, and Management has adopted the amendments as of the beginning of the fiscal period. Management has evaluated the implications of this guidance and the impact to the financial statement amounts and footnote disclosures and has determined there are no material impacts.

Fair Value Measurement (Topic 820)

In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)No. 2018-13 Fair Value Measurement (Topic 820). ASUNo. 2018-13 updates the disclosure requirements on fair value measurements by modifying or removing certain disclosures and adding certain new disclosures. The amendments are effective for fiscal years, and the interim periods within those fiscal years, beginning after December 15, 2019. At this time, management is evaluating the implications of this guidance and the impact it will have to financial statement amounts and footnote disclosures.

 

 

36


THRIVENT CORE FUNDS

NOTES TO FINANCIAL STATEMENTS

April 30, 2019

(unaudited)

 

In-kind Contributions – During March 2018, the Thrivent Core Emerging Markets Debt Fund received anin-kind contribution which consisted of $124,931,300 in securities. As a result of thein-kind contribution, Thrivent Core Emerging Markets Debt Fund issued 13,123,036 shares at a $9.52/share net asset value. Thein-kind amounts and shares issued are included in the Capital Stock Transactions of the Statement of Changes in Net Assets for Thrivent Core Emerging Markets Debt Fund. Thesein-kind transactions were conducted at market value. The transactions were as follows:

 

Contributing Fund/Portfolio

  Shares
Issued
   In-kind
Amount
 

Balanced Income Plus Fund

   1,120,664   $10,668,722 

Balanced Income Plus Portfolio

   1,298,780   $12,364,385 

Diversified Income Plus Fund

   1,577,662   $15,019,338 

Diversified Income Plus Portfolio

   1,289,457   $12,275,624 

Growth and Income Plus Fund

   123,308   $1,173,896 

Growth and Income Plus Portfolio

   140,246   $1,335,143 

Opportunity Income Plus Fund

   6,361,609   $60,562,521 

Opportunity Income Plus Portfolio

   1,211,310   $11,531,671 
  

 

 

   

 

 

 

Totals

   13,123,036   $124,931,300 

 

Other – For financial statement purposes, investment security transactions are accounted for on the trade date. Realized gains or losses on sales are determined on a specific cost identification basis, which is the same basis for federal income tax purposes.

(3) FEES AND COMPENSATION PAID TO AFFILIATES

Fees – The Trust has entered into an administration and accounting services agreement with the Adviser pursuant to which the Adviser provides certain administrative and accounting personnel and services. The Fund pays an annual fixed fee plus percentage of net assets to the Adviser. These fees are accrued daily and paid monthly. For the six months ended April 30, 2019, the Adviser received aggregate fees for administrative and accounting personnel and services of $368,202 from the Trust.

The Trust has entered into an agreement with Thrivent Financial Investor Services Inc. (“Thrivent Investor Services”) to provide transfer agency services necessary to the Trust.These fees are accrued daily and paid monthly. For the year ended, April 30, 2019, Thrivent Investor Services received $60,000.00 for transfer agent services from the Trust.

Each Trustee who is not affiliated with the Adviser receives an annual fee from the Trust for services as a Trustee and is eligible to participate in a deferred compensation plan with respect to these fees. Participants in the plan may designate their deferred Trustee’s fees as if invested in a series of the Thrivent Mutual Funds, except for Money Market Fund as it is not eligible for the deferral plan. The value of each participant’s deferred compensation account will increase or decrease as if it were invested in shares of a particular series of Thrivent Mutual Funds. Each participant’s fees as well as the change in value are included in Trustee fees in

the Statement of Operations. The deferred fees remain in the appropriate Fund until distribution in accordance with the plan. The Payable for trustee deferred compensation, located in the Statement of Assets and Liabilities, is unsecured.

Those trustees not participating in the above plan received $13,465 in fees from the Trust during the six months ended April 30, 2019. In addition, the Trust reimbursed unaffiliated Trustees for reasonable expenses incurred in relation to attendance at the meetings and industry conferences.

Certain officers andnon-independent Trustees of the Trust are officers and directors of Thrivent Asset Mgt., Thrivent Investor Services and Thrivent Distributors, LLC.; however they receive no compensation from the Trust. Affiliated employees and board consultants are reimbursed for reasonable expenses incurred in relation to board meeting attendance.

Acquired Fund Fees and Expenses – The Funds may invest in other mutual funds. Fees and expenses of those underlying funds are not included in the Funds’ expense ratio. The Funds indirectly bear their proportionate share of the annualized weighted average expense ratio for the underlying funds in which it invests.

Interfund Lending – The Funds may participate in an interfund lending program (the “Program”) pursuant to an exemptive order issued by the SEC. The Program permits the Funds to borrow cash for temporary purposes from Thrivent Core Short-Term Reserve Fund. Interest is charged to each participating Fund based on its borrowings at the average of the repo rate and bank loan rate, each as defined in the Program. Each borrowing made under the Program matures no later than seven calendar days after the date of the borrowing, and each borrowing must be securitized by a

 

 

37


THRIVENT CORE FUNDS

NOTESTO FINANCIAL STATEMENTS

April 30, 2019

(unaudited)

 

pledge of segregated collateral with a market value at least equal to 102% of the outstanding principal value of the loan.For the six months ended April 30, 2019, no Funds borrowed cash through the interfund lending program.

(4) FEDERAL INCOME TAX INFORMATION

Distributions are based on amounts calculated in accordance with the applicable federal income tax regulations, which may differ from GAAP. To the extent that these differences are permanent in nature, GAAP requires such amounts to be reclassified within the capital accounts based on their federaltax-basis treatment; temporary differences do not require reclassifications. At fiscalyear-end, the character and amount of distributions, on a tax basis and components of distributable earnings, are finalized. Therefore, as of April 30, 2019, thetax-basis balance has not yet been determined.

At October 31, 2018, the following Funds had accumulated net realized capital loss carryovers expiring as follows:

 

Fund

  Capital Loss
Carryover
   Expiration 

Emerging Markets Debt

  $1,833,806    Unlimited 

International Equity

   11,766,177    Unlimited 

Short-Term Reserve

   17,348    Unlimited 

(5) SECURITY TRANSACTIONS

Purchases and Sales of Investment Securities – For the six months ended April 30, 2019, the cost of purchases and the proceeds from sales of investment securities, other than U.S. Government and short-term securities, were as follows:

 

    In thousands 

Fund

  Purchases   Sales 

Emerging Markets Debt

  $119,901   $52,098 

International Equity

   427,123    349,856 

Low Volatility Equity

   278,066    269,146 

Short-Term Reserve

   743,806    688,505 

Purchases and sales of U.S. Government securities were:

 

    In thousands 

Fund

  Purchases   Sales 

Short-Term Reserve

  $132,607   $17,840 

(7) RELATED PARTY TRANSACTIONS

As of April 30, 2019, related parties held 100% of the outstanding shares of all Thrivent Core Funds. Subscription and redemption activity by concentrated accounts may have a significant effect on the operation of the Funds. In the case of a large redemption, the Funds may be forced to sell investments at inopportune times, resulting in additional losses for the Funds.

(8) SUBSEQUENT EVENTS

The Adviser of the Funds has evaluated the impact of subsequent events through the date the financial statements

were issued, and, except as already included in the Notes to Financial Statements, has determined that no additional items require disclosure.

(9) MARKET RISK

Over time, securities markets generally tend to move in cycles with periods when security prices rise and periods when security prices decline. The value of a Fund’s investments may move with these cycles and, in some instances, increase or decrease more than the applicable market(s) as measured by the Fund’s benchmark index(es). The securities markets may also decline because of factors that affect a particular industry. As of April 30, 2019, the following Funds had portfolio concentration greater than 25% in certain sectors.

 

Fund

  

Sector

 % of
Total Net
Assets
 

Core Emerging Market Debt

  Foreign Government  94.9

Core Short-Term Reserve

  Financials  43.3

(10) SIGNIFICANT RISKS

Credit Risk – Credit risk is the risk that an issuer of a debt security to which the Fund is exposed may no longer be able or willing to pay its debt. As a result of such an event, the debt security may decline in price and affect the value of the Fund.

Derivatives Risk – The use of derivatives (such as credit default swaps) involves additional risks and transaction costs which could leave the Fund in a worse position than if it had not used these instruments. The use of derivatives can lead to losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the contract. Changes in the value of the derivative may not correlate as intended with the underlying asset, rate or index, and the Fund could lose much more than the original amount invested. Derivatives can be highly volatile, illiquid and difficult to value. Certain derivatives may also be subject to counterparty risk, which is that the other party in the transaction will not fulfill its contractual obligations due to its financial condition, market events, or other reasons.

Emerging Markets Risk – The economic and political structures of developing countries, in most cases, do not compare favorably with the U.S. or other developed countries in terms of wealth and stability, and their financial markets often lack liquidity. Fund performance will likely be negatively affected by portfolio exposure to countries in the midst of, among other things, hyperinflation, currency devaluation, trade disagreements, sudden political upheaval, or interventionist government policies. Significant buying or selling actions by a few major investors may also heighten the volatility of emerging markets. These factors make

 

 

38


THRIVENT CORE FUNDS

NOTES TO FINANCIAL STATEMENTS

April 30, 2019

(unaudited)

 

investing in emerging market countries significantly riskier than in other countries, and events in any one country could cause the Fund’s share price to decline.

Equity Security Risk – Equity securities held by the Fund may decline significantly in price over short or extended periods of time, and such declines may occur because of declines in the equity market as a whole, or because of declines in only a particular country, company, industry, or sector of the market. From time to time, the Fund may invest a significant portion of its assets in companies in one or more related sectors or industries which would make the Fund more vulnerable to adverse developments affecting such sectors or industries. Equity securities are generally more volatile than most debt securities.

ETF Risk – An ETF is subject to the risks of the underlying investments that it holds. In addition, for index-based ETFs, the performance of an ETF may diverge from the performance of such index (commonly known as tracking error). ETFs are subject to fees and expenses (like management fees and operating expenses) that do not apply to an index, and the Fund will indirectly bear its proportionate share of any such fees and expenses paid by the ETFs in which it invests.

Foreign Currency Risk – The value of a foreign currency may decline against the U.S. dollar, which would reduce the dollar value of securities denominated in that currency. The overall impact of such a decline of foreign currency can be significant, unpredictable, and long lasting, depending on the currencies represented, how each one appreciates or depreciates in relation to the U.S. dollar, and whether currency positions are hedged. Under normal conditions, the Fund does not engage in extensive foreign currency hedging programs. Further, exchange rate movements are volatile, and it is not possible to effectively hedge the currency risks of many developing countries.

Foreign Securities Risk – Foreign securities generally carry more risk and are more volatile than their domestic counterparts, in part because of higher political and economic risks, lack of reliable information and fluctuations in currency exchange rates. The Fund’s investment in any country could be subject to governmental actions such as capital or currency controls, nationalizing a company or industry, expropriating assets, or imposing punitive taxes that would have an adverse effect on security prices, and impair the Fund’s ability to repatriate capital or income. Foreign securities may also be more difficult to resell than comparable U.S. securities because the markets for foreign securities are often less liquid. Even when a foreign security increases in price in its local currency, the appreciation may be diluted by adverse changes in exchange rates when

the security’s value is converted to U.S. dollars. Foreign withholding taxes also may apply and errors and delays may occur in the settlement process for foreign securities.

Government Securities Risk – The Fund invests in securities issued or guaranteed by the U.S. government or its agencies and instrumentalities (such as Federal Home Loan Bank, Ginnie Mae, Fannie Mae or Freddie Mac securities). Securities issued or guaranteed by Federal Home Loan Bank, Ginnie Mae, Fannie Mae or Freddie Mac are not issued directly by the U.S. government. Ginnie Mae is a wholly owned U.S. corporation that is authorized to guarantee, with the full faith and credit of the U.S. government, the timely payment of principal and interest of its securities. By contrast, securities issued or guaranteed by U.S. government-related organizations such as Federal Home Loan Bank, Fannie Mae and Freddie Mac are not backed by the full faith and credit of the U.S. government. No assurance can be given that the U.S. government would provide financial support to its agencies and instrumentalities if not required to do so by law. In addition, the value of U.S. government securities may be affected by changes in the credit rating of the U.S. government.

High Yield Risk – High yield securities – commonly known as “junk bonds” – to which the Fund is exposed are considered predominantly speculative with respect to the issuer’s continuing ability to make principal and interest payments. If the issuer of the security is in default with respect to interest or principal payments, the value of the Fund may be negatively affected. High yield securities generally have a less liquid resale market.

Interest Rate Risk – Interest rate risk is the risk that prices of debt securities decline in value when interest rates rise for debt securities that pay a fixed rate of interest. Debt securities with longer durations (a measure of price sensitivity of a bond or bond fund to changes in interest rates) or maturities (i.e., the amount of time until a bond’s issuer must pay its principal or face value) tend to be more sensitive to changes in interest rates than debt securities with shorter durations or maturities. Changes by the Federal Reserve to monetary policies could affect interest rates and the value of some securities.

Investment Adviser Risk – The Fund is actively managed and the success of its investment strategy depends significantly on the skills of the adviser in assessing the potential of the

 

 

39


THRIVENT CORE FUNDS

NOTESTO FINANCIAL STATEMENTS

April 30, 2019

(unaudited)

 

investments in which the Fund invests. This assessment of investments may prove incorrect, resulting in losses or poor performance, even in rising markets.

Issuer Risk – Issuer risk is the possibility that factors specific to an issuer to which the Fund is exposed will affect the market prices of the issuer’s securities and therefore the value of the Fund.

Large Cap RiskLarge-sized companies may be unable to respond quickly to new competitive challenges such as changes in technology. They may also not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion.

Liquidity Risk – Liquidity is the ability to sell a security relatively quickly for a price that most closely reflects the actual value of the security. Dealer inventories of bonds are at or near historic lows in relation to market size, which has the potential to decrease liquidity and increase price volatility in the fixed income markets, particularly during periods of economic or market stress. As a result of this decreased liquidity, the Fund may have to accept a lower price to sell a security, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative effect on performance.

Market Risk – Over time, securities markets generally tend to move in cycles with periods when security prices rise and periods when security prices decline. The value of the Fund’s investments may move with these cycles and, in some instances, increase or decrease more than the applicable market(s) as measured by the Fund’s benchmark index(es). The securities markets may also decline because of factors that affect a particular industry.

Mid Cap RiskMedium-sized companies often have greater price volatility, lower trading volume, and less liquidity than larger, more-established companies. These companies tend to have smaller revenues, narrower product lines, less management depth and experience, smaller shares of their product or service markets, fewer financial resources, and less competitive strength than larger companies.

Mortgage-Backed and Other Asset-Backed Securities Risk – The value of mortgage-backed and asset-backed securities will be influenced by the factors affecting the housing market and the assets underlying such securities. As a result, during periods of declining asset value, difficult or frozen credit markets, swings in interest rates, or deteriorating economic conditions, mortgage-related and asset-backed securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid. In addition, both mortgage-backed and asset-backed securities are sensitive to changes in the repayment patterns of the underlying security. If the principal payment on the underlying asset is repaid faster or slower than the holder of the asset-backed or mortgage- backed

security anticipates, the price of the security may fall, particularly if the holder must reinvest the repaid principal at lower rates or must continue to hold the security when interest rates rise. This effect may cause the value of the Fund to decline and reduce the overall return of the Fund.

Non-Diversified Risk – The Fund is not “diversified” within the meaning of the 1940 Act. That means the Fund may invest a greater percentage of its assets in the securities of any single issuer compared to other funds. Anon-diversified portfolio is generally more susceptible than a diversified portfolio to the risk that events or developments affecting a particular issuer or industry will significantly affect the Fund’s performance.

Portfolio Turnover Rate Risk – The Fund may engage in active and frequent trading of portfolio securities in implementing its principal investment strategies. A high rate of portfolio turnover (100% or more) involves correspondingly greater expenses which are borne by the Fund and its shareholders and may also result in short-term capital gains taxable to shareholders.

Prepayment Risk – Mortgage-backed and asset-backed securities are sensitive to changes in the repayment patterns of the underlying securities, including the conversion, prepayment or redemption of the investments. If the principal payment on the underlying asset is repaid faster than the holder of the mortgage-backed or asset-backed security anticipates, the price of the security may fall, especially if the holder must reinvest the repaid principal at lower rates. When people start prepaying the principal on the collateral underlying a collateralized mortgage obligation (“CMOs”) (such as mortgages underlying a CMO), for example, some classes may retire substantially earlier than the stated maturity or final distribution dates.

Quantitative Investing Risk – The risk that securities selected according to a quantitative analysis methodology can perform differently from the market as a whole based on the model and the factors used in the analysis, the weight placed on each factor and changes in the factor’s historical trends. Such models are based on assumptions of these and other market factors, and the models may not take into account certain factors, or perform as intended, and may result in a decline in the value of the Fund’s portfolio.

Redemption and Lending Risk – The Fund participates in an interfund lending program (the “Program”) which enables a participating fund to lend cash directly to and borrow money from other participating funds for temporary purposes. The other participants in the Program are other mutual funds advised by the Adviser and its affiliates. Under the Program, all loans will be made by the Fund. There is risk that a borrowing fund could be unable to repay a loan when due, and a delay in repayment to the Fund could result in a

 

 

40


THRIVENT CORE FUNDS

NOTESTO FINANCIAL STATEMENTS

April 30, 2019

(unaudited)

 

lost opportunity and increase risk of the Fund experiencing a loss when meeting redemption requests if it is forced to sell securities at unfavorable prices in an effort to generate sufficient cash to pay redeeming shareholders.

Redemption and Share Ownership Risk – The Fund may need to sell portfolio securities to meet redemption requests. The Fund could experience a loss when selling portfolio securities to meet redemption requests if there is (i) significant redemption activity by shareholders, including, for example, when a single investor or few large investors make a significant redemption of Fund shares, (ii) a disruption in the normal operation of the markets in which the Fund buys and sells portfolio securities or (iii) the inability of the Fund to sell portfolio securities because such securities are illiquid. In such events, the Fund could be forced to sell securities at unfavorable prices in an effort to generate sufficient cash to pay redeeming shareholders. A majority of the Fund’s shares may be held by other mutual funds advised by the Adviser and its affiliates. It also is possible that some or all of these other mutual funds will decide to purchase or redeem shares of the Fund simultaneously or within a short period of time of one another in order to execute their asset allocation strategies. Accordingly, there is a risk that the share trading activities of these shareholders could disrupt the Fund’s investment strategies which could have adverse consequences for the Fund and other shareholders (e.g., by requiring the Fund to sell investments at inopportune times or causing the Fund to maintain larger-than-expected cash positions pending acquisition of investments).

Small Cap Risk – Smaller, less seasoned companies often have greater price volatility, lower trading volume, and less liquidity than larger, more established companies. These companies tend to have small revenues, narrower product lines, less management depth and experience, small shares of their product or service markets, fewer financial resources, and less competitive strength than larger companies. Such companies seldom pay significant dividends that could cushion returns in a falling market

Sovereign Debt Risk – Sovereign debt securities are issued or guaranteed by foreign governmental entities. These investments are subject to the risk that a governmental entity may delay or refuse to pay interest or repay principal on its sovereign debt, due, for example, to cash flow problems, insufficient foreign currency reserves, political considerations, the relative size of the governmental entity’s debt position in relation to the economy or the failure to put in place economic reforms required by the International Monetary Fund or other multilateral agencies. If a governmental entity defaults, it may ask for more time in which to pay or for further loans. There is no legal process for collecting sovereign debts that a government does not

pay nor are there bankruptcy proceedings through which all or part of the sovereign debt that a governmental entity has not repaid may be collected.

 

 

41


THRIVENT CORE FUNDS

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD *

 

       Income From Investment Operations  Less Distributions From 
   Net Asset
Value,
Beginning of
Period
   Net Investment
Income/(Loss)
   Net Realized
and Unrealized
Gain/(Loss) on
Investments(a)
  Total from
Investment
Operations
  Net
Investment
Income
  Net Realized
Gain on
Investments
 

EMERGING MARKETS DEBT FUND

         

Period Ended 4/30/2019(unaudited)

  $9.04   $0.21   $0.42  $0.63  $(0.21 $ 

Year Ended 10/31/2018

   9.86    0.40    (0.82  (0.42  (0.40   

Year Ended 10/31/2017(c)

   10.00    0.05    (0.14  (0.09  (0.05   

INTERNATIONAL EQUITY FUND

         

Period Ended 4/30/2019(unaudited)

   9.28    0.14    0.45   0.59   (0.30   

Year Ended 10/31/2018(d)

   10.00    0.31    (1.02  (0.71  (0.01   

LOW VOLATILITY EQUITY FUND

         

Period Ended 4/30/2019(unaudited)

   10.54    0.12    1.18   1.30   (0.17  (0.23

Year Ended 10/31/2018(e)

   10.00    0.13    0.41   0.54       

SHORT-TERM RESERVE FUND

         

Period Ended 4/30/2019(unaudited)

   10.00    0.13    0.00   0.13   (0.13   

Year Ended 10/31/2018

   10.00    0.20    0.00   0.20   (0.20  0.00 

Year Ended 10/31/2017

   10.00    0.11    0.00   0.11   (0.11   

Year Ended 10/31/2016(f)

   10.00    0.03    0.00   0.03   (0.03   

 

(a)

The amount shown may not correlate with the change in aggregate gains and losses of portfolio securities due to the timing of sales and redemptions of portfolio shares.

 

(b)

Total investment return assumes dividend reinvestment and does not reflect any deduction for applicable sales charges. Not annualized for periods less than one year. Total return shown does not reflect charges and expenses imposed on contract holders by the variable accounts. Those charges and expenses reduce the return received by contract holders as compared to the return presented.

 

(c)

Since inception, September 5, 2017.

 

(d)

Since inception, November 14, 2017.

 

(e)

Since inception, February 28, 2018.

 

(f)

Since inception, May 2, 2016.

 

*

All per share amounts have been rounded to the nearest cent.

 

**

Computed on an annualized basis for periods less than one year

The accompanying Notes to Financial Statements are an integral part of this statement.

 

42


THRIVENT CORE FUNDS

FINANCIAL HIGHLIGHTSCONTINUED

RATIOS/SUPPLEMENTAL DATA

 

              Ratio to Average Net Assets**  Ratio to Average Net Assets
Before Expenses Waived,
Credited or Acquired Fund
Fees and Expenses**
    

Total
Distributions

  Net Asset
Value, End of
Period
   Total
Return(b)
  Net Assets,
End of Period
(in millions)
   Expenses  Net
Investment
Income/(Loss)
  Expenses  Net Investment
Income/(Loss)
  Portfolio
Turnover Rate
 

$       (0.21)

  $9.46    7.05 $787.1    0.05  4.64  0.05  4.64  7

(0.40)

   9.04    (4.35)  684.2    0.06  4.38  0.06  4.38  13

(0.05)

   9.86    (0.94)  421.8    0.21  3.48  0.21  3.48  0

(0.30)

   9.57    6.76  927.1    0.06  3.86  0.06  3.86  40

(0.01)

   9.28    (7.08)  798.2    0.08  3.42  0.08  3.42  73

(0.40)

   11.44    12.90  986.0    0.04  2.27  0.04  2.27  30

–  

   10.54    5.40  873.7    0.06  1.88  0.06  1.88  40

(0.13)

   10.00    1.33  5,358.0    0.01  2.67  0.01  2.67  89

(0.20)

   10.00    2.01  4,854.5    0.01  1.99  0.01  1.99  213

(0.11)

   10.00    1.12  4,988.2    0.01  1.11  0.01  1.11  143

(0.03)

   10.00    0.32  4,762.5    0.01  0.67  0.01  0.67  31

The accompanying Notes to Financial Statements are an integral part of this statement.

 

43


ADDITIONAL INFORMATION

(unaudited)

PROXY VOTING

The policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities are attached to the Trust’s Statement of Additional Information. The Trust files a report of how it voted proxies relating to portfolio securities on FormN-PX with the SEC. You may request a free copy of the Statement of Additional Information or the report of how the Trust voted proxies relating to portfolio securities during the most recent12-month period ended June 29 by calling800-847-4836. You also may review the Statement of Additional Information or the report of how the Trust voted proxies relating to portfolio securities during the most recent12-month period ended June 29 at SEC.gov.

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

Through April 2019, the Trust filed its Schedule of Investments on FormN-Q with the SEC for the first and third quarters of each fiscal year. Beginning April 2019, the Trust will no longer file FormN-Q and will begin filing FormN-PORT. Part F of each Fund’sN-PORT filing for the first and third quarters will include the complete schedule of investments which were previously filed on FormN-Q. The Trust’s most recent Schedule of Investments may be requested by calling800-847-4836 or at SEC.gov. You also may review and copy the FormsN-PORT-EX andN-Q for the Trust at the SEC’s Public Reference Room in Washington, DC. You may get information about the operation of the Public Reference Room by calling800-SEC-0330.

BOARD APPROVAL OF ADVISORY AGREEMENT

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), requires that a fund’s investment advisory agreement be approved initially by the fund’s board of trustees. Section 15(c) also requires that the continuation of such an agreement, after an initial term of up to two years, be annually reviewed and approved by the board. Any such agreement must be approved by a vote of a majority of the trustees who are not parties to the agreement or “interested persons” (as defined in the 1940 Act) of a party to the agreement at anin-person meeting of the board called for the purpose of voting on such approval.

At its meeting on November13-14, 2018, the Board of Trustees (the “Board”) of the Thrivent Core Funds (the “Trust”), including the trustees who are not parties to the agreement or “interested persons” as defined in the 1940 Act (the “Independent Trustees”), considered and voted unanimously to renew the existing advisory agreement (the “Advisory Agreement”), as amended, between the Trust and Thrivent Asset Management, LLC (the “Adviser”) for each series of the Trust, except the recently launched Thrivent Core Low Volatility Equity Fund (each, a “Fund”). The Trust was designed to provide shareholders of other Thrivent funds with certain benefits, including a reduction of operational complexities associated with investing in various asset classes. The series of the Trust are only available to other funds and accounts managed by the Adviser or its affiliates.

In connection with its evaluation of the agreement with the Adviser, the Board reviewed a broad range of information requested for this purpose and considered a variety of factors, including the purpose of the Trust and the Funds in relation to other Thrivent funds, as well as the following:

 

 1.

The nature, extent, and quality of the services provided by the Adviser;

 

 2.

The performance of each Fund;

 

 3.

The net operating expense ratio of each Fund compared to a peer group;

 

 4.

The cost of services provided and profit realized by the Adviser;

 

 5.

Other benefits realized by the Adviser and its affiliates from their relationship with the Trust; and

 

 6.

Any other factors that the Board deemed relevant to its consideration.

 

44


ADDITIONAL INFORMATION

(unaudited)

 

The Contracts Committee of the Board (consisting of all of the Independent Trustees) met on five occasions from May 22 to November 14, 2018 to consider information relevant to the renewal process furnished by the Adviser in advance of the meetings. The Board had the opportunity to ask questions and request further information in connection with its consideration. The Independent Trustees also retained the services of Management Practice Inc. (“MPI”) as an independent consultant to assist in the compilation, organization, and evaluation of relevant information. This information includedFund-by-Fund statistical comparisons of thenon-advisory fees and net operating expenses of each of the Funds in comparison to peer groups of comparable funds;1-year performance information for Thrivent Core Short-Term Reserve Fund; information with respect to services provided to the Funds and fees charged; asset and flow trends for the Funds; and information regarding the types of services furnished to the Funds.

The Board received information from the Adviser regarding the personnel providing services to the Funds, including investment management, compliance and administrative personnel. The Board also received monthly reports from the Adviser’s investment management staff with respect to the performance of the Funds. In addition to its review of the information presented to the Board during the contract renewal process, the Board also considered information obtained from management throughout the course of the year. The Board also reviewed information from MPI, includingFund-by-Fund analyses and independent assessment of information relating to the Funds and the agreements.

The Independent Trustees were represented by independent counsel throughout the review process and during executive sessions without management present to consider the reapproval of the Advisory Agreement for the Funds. As noted above, the Independent Trustees were assisted throughout the process by an independent consultant, MPI. Each Independent Trustee relied on his or her own business judgment in determining the weight to be given to each factor considered in evaluating the materials that were presented to them. The Contracts Committee’s and Board’s review and conclusions were based on a comprehensive consideration of all information presented to them and were not the result of any single controlling factor. In addition, each Trustee may have weighed individual factors differently. The key factors considered and the conclusions reached are described below.

Nature, Extent and Quality of Services

At each of the Board’s regular quarterly meetings, management presented information describing the services furnished to the Funds by the Adviser, transfer agent and administrator. During these meetings, management reported on the investment management, portfolio trading and compliance services provided to the Funds. During the renewal process, the Board considered the specific services provided under the Advisory Agreement. The Board considered information relating to the investment experience and qualifications of the Adviser’s portfolio managers overseeing investments for the Funds.

The Board received reports and presentations at each of its quarterly meetings from the Adviser’s senior investment team about each of the Funds. These reports and presentations gave the Board the opportunity to evaluate the abilities of the portfolio manager and other investment professionals and the quality of services they provide to the Funds. The Independent Trustees also metin-person, including in executive session, with and received quarterly reports from the Trust’s Chief Compliance Officer. The Board noted that the Chief Compliance Officer met regularly between quarterly meetings with the Chair of the Ethics and Compliance Committee.

The Board considered the adequacy of the Adviser’s resources used to provide services to the Trust pursuant to the Advisory Agreement. The Adviser reviewed with the Board the Adviser’s process for overseeing the portfolio management team of each Fund. In addition, the Adviser noted that its investments in technology and personnel have benefitted the Trust and other Thrivent funds and discussed continued investments in these resources, noting, in particular, additional personnel to enhance its research function. The Adviser also discussed how it has continued to strengthen its compliance program. The Board viewed these actions as a positive factor in reapproving the existing Advisory Agreement, as they demonstrated the Adviser’s commitment to provide the Funds with quality service and competitive investment performance. The Board concluded that, within the context of its full deliberations, the nature, extent and quality of the investment advisory services provided to the Funds by the Adviser supported renewal of the Advisory Agreement.

 

45


ADDITIONAL INFORMATION

(unaudited)

 

Performance of the Funds

The Board noted the Funds’ short operational history and considered whether each Fund has operated within its investment objective. At quarterly meetings, a member of the Adviser’s senior investment team reviewed with the Board the economic and market environment and risk management in connection with the management of the Funds and other Thrivent funds.

Advisory Fees and Fund Expenses

The Board noted that the Adviser does not charge an advisory fee to the Funds. The Board reviewed information provided by the Adviser regarding custodial, administrative, transfer agent and othernon-advisory fees and expenses.

Because the Adviser does not charge an advisory fee to the Funds, the Board did not consider whether economies of scale would be realized as the Funds grow and whether fee levels reflect economies of scale for the benefit of Fund shareholders. The Board did consider those factors for other Thrivent funds with advisory fees.

On the basis of its review, the Board concluded that continuing to not charge an advisory fee to the Funds for investment management services was reasonable.

Cost of Services and Profitability

The Board considered the profitability of the Adviser both overall and on afund-by-fund basis. The Board considered the level of the Adviser’s profits with respect to all the Thrivent funds, including the Funds. The Board considered that the Adviser makes no profit under the Advisory Agreement and concluded that the Adviser’s profitability on other fees was not excessive in light of the nature, extent and quality of services provided to the Funds.

Other Benefits to the Adviser and its Affiliates

The Board considered information regarding potential“fall-out” or ancillary benefits that the Adviser and its affiliates may receive as a result of their relationship with the Trust, both tangible and intangible, such as their ability to leverage investment professionals who manage other portfolios, an enhanced reputation as an investment adviser which may help in attracting other clients and investment personnel, and the engagement of affiliates as service providers to the Funds. The Board noted that such benefits were difficult to quantify but were consistent with benefits received by other mutual fund advisers.

Based on the factors discussed above, the Contracts Committee unanimously recommended approval of the Advisory Agreement, and the Board, including all of the Independent Trustees voting separately, approved the Advisory Agreement.

 

46


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This report is submitted for the information of shareholders

of Thrivent Core Funds. It is not authorized for distribution to

prospective investors unless preceded or accompanied by the

current prospectus for Thrivent Core Funds, which contains more

complete information about the Trust, including investment

objectives, risks, charges and expenses.


Item 2.

Code of Ethics

Not applicable to semiannual report

 

Item 3.

Audit Committee Financial Expert

Not applicable to semiannual report

 

Item 4.

Principal Accountant Fees and Services

Not applicable to semiannual report

 

Item 5.

Audit Committee of Listed Registrants

Not applicable

 

Item 6.

Investments

 

 (a)

Registrant’s Schedule of Investments is included in the report to shareholders filed under Item 1.

 

 (b)

Not applicable to this filing.

 

Item 7.

Disclosure of Proxy Voting Policies and Procedures forClosed-End Management Investment Companies

Not applicable

 

Item 8.

Portfolio Managers ofClosed-End Management Investment Companies

Not applicable

 

Item 9.

Purchases of Equity Securities byClosed-End Management Investment Company and Affiliated Purchasers.

Not applicable

 

Item 10.

Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominees to registrant’s board of trustees.

 

Item 11.

Controls and Procedures

(a)(i) Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that registrant’s disclosure controls and procedures (as defined in Rule30a-3(c) under the Investment Company Act of 1940) are effective, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(a)(ii) Registrant’s principal executive and principal financial officers, or persons performing similar functions, are aware of no change in registrant’s internal control over financial reporting (as defined in Rule30a-3(d) under the Investment Company Act of 1940) that occurred during registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, registrant’s internal control over financial reporting.

 

Item 12.

Disclosure of Securities Lending Activities forClosed-End Management Investment Companies

Not applicable


Item 13.

Exhibits

 

 (a)(1)

Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable.

 

 (a)(2)

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule30a-2(a) under the 1940 Act (17 CFR270.30a-2(a)) in the exact form set forth below: SeeEX-99.CERT attached hereto.

 

 (a)(3)

Any written solicitation to purchase securities under Rule23c-1 under the 1940 Act (17 CFR270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable.

 

 (a)(4)

Change in the registrant’s independent public accountant: Not applicable

 

 (b)

If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule30a-2(b) under the 1940 Act (17 CFR270.30a-2(b)), Rule13a-14(b) or Rule15d-14(b) under the Exchange Act (17 CFR240.13a-14(b) or240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference: SeeEX-99.906CERT attached hereto.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: June 28, 2019  THRIVENT CORE FUNDS
  By: 

/s/ David S. Royal

   David S. Royal
   President and Chief Investment Officer

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

Date: June 28, 2019  By: 

/s/ David S. Royal

   David S. Royal
   President and Chief Investment Officer
   (principal executive officer)
Date: June 28, 2019  By: 

/s/ Gerard V. Vaillancourt

   Gerard V. Vaillancourt
   Treasurer and Principal Accounting Officer
   (principal financial officer)