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Thrivent High Income Municipal Bond Fund —
Class S
THMBX
THMBX
Thrivent High Income Municipal Bond Fund
Class
S
Risk profile
Conservative Aggressive
Target allocation
30% A or Above
55% BBB & BB
15% N/R and Below BB
Inception date
2/28/2018
As of
Net asset value
N/A
Daily NAV change
$N/A
As of N/A
YTD return
5.57%
1-year return
13.25%
As of 06/30/2021
Net annual fund operating expenses
0.60%
As of
Sales charge
None
As of

Thrivent High Income Municipal Bond Fund seeks a high level of current income exempt from federal income taxes.

This fund invests in a nationally-diversified portfolio of municipal bonds of varying credit quality. A municipal bond is a debt security issued by a city, county or state government to finance its capital expenditures. These bonds often finance public projects such as schools, airports, roads, bridges, sewers, hospitals, and senior living and recreational facilities. Municipal bonds are generally exempt from federal income taxes. The Fund holds at least 50% of its assets in bonds that are unrated or are rated BBB or below, but also has an allocation to higher quality investment-grade bonds. It expects to invest primarily in revenue bonds that are repaid from the revenues generated by the project and may also invest in general obligation bonds that are backed by the taxing authority of the issuer. The Fund will also invest in “tobacco bonds” issued by states to securitize their settlements with tobacco companies. Higher yielding municipal bonds typically have more credit risk and longer duration than investment grade bonds.

Strategy

The portfolio management team seeks to add value through security selection and active management, and monitors risk in an effort to build a well-diversified portfolio. The team uses fundamental, quantitative and technical investment research techniques to determine which securities to buy and sell. Through rigorous credit research, the analysts seek to identify municipal bonds (both investment grade and below investment grade) that are issued by entities with strong fundamentals and sufficient cash flows to meet their principal and interest obligations. The team may also invest in Treasury futures contracts to manage interest rate risk. The portfolio managers are responsible for portfolio construction and risk management and seek to invest with a prudent level of risk relative to the non-investment grade peer group of funds. The Fund's holdings may be concentrated in certain sectors including health care and education. The Fund may utilize derivatives to manage duration, or interest rate risk.

Risk

Municipal bonds may be affected by political or economic conditions at the state, regional or federal level. Debt securities are subject to risks such as declining prices during periods of rising interest rates and credit risk, or the risk that an issuer not pay its debt. High yield securities are subject to increased credit risk as well as liquidity risk. Changes in federal income tax laws or rates may affect both the net asset value of the Fund and the taxable equivalent interest generated from securities in the fund. Some issues may be subject to state and local taxes and/or the federal and state alternative minimum tax (AMT). Consult a tax advisor for more information about your specific situation, including state/local tax treatment. The use of futures contracts involves additional risks such as a loss in value in the underlying instrument, which could decrease the Fund’s value. The London Interbank Offered Rate (LIBOR) is being phased out, which brings uncertainty to instruments tied to it. Markets may also be impacted by domestic or global events, including public health threats, terrorism, natural disasters or similar events. The Adviser's assessment of investments may prove incorrect, resulting in losses or poor performance. When bond inventories are low in relation to the market size, there is the potential for decreased liquidity and increased price volatility. In unusual circumstances, the Fund could experience a loss when selling portfolio securities to meet redemption requests for a variety of reasons. The Fund may engage in active and frequent trading of portfolio securities, which may result in higher transaction costs and higher taxes. These and other risks are described in the prospectus.

The Fund may be suitable for investors who:

  • Seek income that is generally exempt from federal income taxes.  The Fund may invest in municipal securities that are subject to state and local taxes and/or the alternative minimum tax (AMT). While the dividends earned on a municipal bond fund are usually federally tax-exempt, any capital gains distributions, as well as realized capital gains from selling fund shares, may be taxable.
  • Have a medium- to long-term investment time horizon and a moderate risk tolerance.
  • Are willing to accept lower long-term returns in order to have a low to moderate level of risk and volatility.
Fund management

Our seasoned team of more than 125 investment professionals brings their deep expertise to managing each fund so you can feel confident in the choices you’re making. More than 80% have at least 10 years of experience, over 50% have more than 20 years of investment experience, and more than 80% have earned the Chartered Financial Analyst designation, an advanced degree, or both.

  • Janet I. Grangaard, CFA
    Janet I. Grangaard, CFA
    Senior Portfolio Manager
    Managing this fund since 2018

    Ms. Grangaard joined Thrivent in 1988. She has served as a portfolio manager since 1994. Read more.

  • Johan Å. Åkesson, CFA
    Johan Å. Åkesson, CFA
    Senior Portfolio Manager
    Managing this fund since 2018

    Mr. Åkesson joined Thrivent in 1993, and has served as portfolio manager and associate portfolio manager during various time periods since 1999. Read more.


Performance

Performance data cited represents past performance and should not be viewed as an indication of future results. Investment return and principal value of the investment will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. Current performance may be lower or higher than the performance data quoted.


Average Annualized Returns

as of 06/30/2021
0.60% Net annual fund operating expenses
1.62% Total annual fund operating expenses
See data by:

The Adviser has contractually agreed, for a period of one year from the date of the most recent prospectus, to waive certain fees and/or reimburse certain expenses associated with the Fund. Refer to the Fees & Expenses table in the Fund’s prospectus. If this waiver had not been in effect, performance would have been lower.


Yields

as of 06/30/2021
12 Month Distribution
2.99%
30 Day SEC
1.97%
30 Day SEC Pre-Waiver
1.23%
Monthly Distribution
3.00%

Taxable-Equivalent Yield

as of 06/30/2021
The yield an investor would need to earn on a taxable bond in order for its yield to be equivalent to a tax free investment.
Federal Tax Bracket Taxable-Equivalent 12-Month Taxable-Equivalent 30 Day SEC Taxable-Equivalent 30 Day Distribution
12.00% 3.40% 2.24% 3.41%
22.00% 3.83% 2.53% 3.85%
24.00% 3.93% 2.59% 3.95%
32.00% 4.40% 2.90% 4.41%
38.80% 4.89% 3.22% 4.90%
40.80% 5.05% 3.33% 5.07%
The two highest tax brackets (38.8% and 40.8%) include the additional 3.8% Net Investments Income Tax (commonly referred to as the "Medicare Contribution Tax".)

Growth of 10K

as of 06/30/2021
Data in this section is based on month-end
$12,319
Total market value
(assumes the reinvestment of all dividends and capital gains)
$1,209
Current value of reinvested dividends and capital gains

Calendar year performance

as of 06/30/2021

Characteristics

Performance data cited represents past performance and should not be viewed as an indication of future results. Investment return and principal value of the investment will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. Current performance may be lower or higher than the performance data quoted.


Holdings breakdown

as of 06/30/2021
Total number of holdings
100
Turnover ratio (as of 05/28/2021)
50.00%

Top 10 States

as of 05/28/2021
58.39%
of total assets
State
%
New york
9.62%
Texas
8.64%
Colorado
6.55%
Florida
6.28%
California
5.51%
Georgia
5.40%
Illinois
5.39%
Arizona
3.90%
Pennsylvania
3.64%
Michigan
3.46%

Fund Diversification

as of 06/30/2021
N/A
N/A
  • Health Care
    23.63%
  • Education
    17.78%
  • Transportation
    16.56%
  • Industrial Revenue
    12.07%
  • Special Tax Revenue
    9.00%
  • Tobacco Settlement
    4.94%
  • Local/State Government
    4.56%
  • Cash
    4.27%
  • Utilities
    3.32%
  • Housing
    2.90%
  • Miscellaneous
    .96%

Credit quality rating distribution

as of 06/30/2021
N/A
N/A
Bond type
% of total
  • High Quality (HQ) Bonds
    69.30%
  • Cash
    4.30%
  • U.S. Government Guaranteed
    .00%
  • AAA
    .00%
  • AA
    5.90%
  • A
    19.30%
  • BBB
    39.80%
Bond type
% of total
  • High Yield (HY) Bonds
    7.90%
  • BB
    6.80%
  • B
    1.10%
  • CCC
    .00%
  • CC
    .00%
  • C
    .00%
  • D
    .00%
  • Non-Rated (NR) Bonds
    22.90%
  • May be HQ/HY/NR Bonds
    .00%
  • ETFs/Closed-End Funds
    .00%

Volatility

as of 06/30/2021
Depending on the fund inception date, some data may not be available.
Standard deviation Average annualized returns
Thrivent High Income Municipal Bond Fund 8.65 6.23
Bloomberg Barclays U.S. Aggregate Bond Index 3.40 5.34

Ratings


Morningstar

as of 06/30/2021
Category: High Yield Muni
Morningstar Information
Funds in category
Overall
182
3-Year
182
5-Year
Doesn't apply due to fund's inception date of 2/28/2018
10-Year
Doesn't apply due to fund's inception date of 2/28/2018
Risk vs. category
Above Average
182
Return vs. category
Average
182

Distributions

as of 06/30/2021
Dividends Month End Nav
July 2020 $0.0269 $10.37
August 2020 $0.0270 $10.35
September 2020 $0.0267 $10.31
October 2020 $0.0262 $10.29
November 2020 $0.0273 $10.53
December 2020 $0.0273 $10.69
January 2021 $0.0256 $10.87
February 2021 $0.0234 $10.68
March 2021 $0.0271 $10.74
April 2021 $0.0321 $10.87
May 2021 $0.0320 $11.02
June 2021 $0.0307 $11.11

Trailing 12-Months; Dividend Schedule: Declared Daily, Paid Monthly


Capital gains - trailing 12 months

as of 06/30/2021
Record date Short term capital gains Long term capital gains Total
- - - -

Expenses, fees, and charges

Management Fees and Other Expenses 1.62%
Distribution/12b-1 Fee None
Total Annual Fund Operating Expenses 1.62%
Less Waiver (1.02%)
Net Annual Fund Operating Expenses 0.60%
Redemption Fee None
Transaction Fee None
Low Balance Fee $10 Semiannually
Front-End Sales Charge None
Back-End Sales Charge None

The Adviser has contractually agreed, for a period of one year from the date of the most recent prospectus, to waive certain fees and/or reimburse certain expenses associated with the Fund. Refer to the Fees & Expenses table in the Fund’s prospectus. If this waiver had not been in effect, performance would have been lower.


Minimum investment

Initial for non-retirement accounts $2,000
Initial for retirement or tax deferred accounts $1,000
Additional Purchases $50
Initial minimums are waived when a recurring investment of $50 or more is set up

Documents

Title Download View
Prospectus & Fund Documents -
Fund Facts -
Fund Commentary -
Sales Profile -
Schedule of Investment -
Annual Proxy Voting -

Due to rounding, some values may not total 100%.