This fund does not offer daily liquidity.
An interval fund is an unlisted closed-end fund with limited liquidity. Please make sure you understand the risks associated with this structure including:
- Investors can buy into the fund at any time but can only redeem on specific dates four times per year.
- At least 5 percent, and no more than 25 percent, of the outstanding shares is expected to be made available for quarterly repurchases.
- It is possible that a repurchase offer may be oversubscribed, with the result that shareholders may only be able to have a portion of their shares repurchased. There is no assurance that you will be able to tender your shares when or in the amount that you desire.
Investment Objective: The Fund seeks to produce income. There can be no guarantee that the Fund will achieve its investment objective or that its investment strategy will be successful.
The Fund invests primarily in church loans and should not be considered a liquid investment. The fund also invests in mortgage-backed securities. The value of the Fund is influenced by factors impacting the overall market, debt securities in particular, and specific issues. The Fund may incur losses due to investments that do not perform as anticipated by the investment adviser.
Church loans are mortgages taken out by non-profit organizations with a Christian mission, or bonds issued by these organizations. They are typically not listed on any national securities exchange and no active trading market exists for them. Church loans are primarily backed by real estate and are vulnerable to factors that affect the real estate market. Default risk is the risk that a borrower will not be able to make principal and interest payments in which case the value of the Fund may be negatively affected. There are many factors specific to churches that may impact a borrower’s finances and its ability to make payments.
The Fund has an interval fund structure, which means that, unlike with an open-ended mutual fund, investors cannot sell their shares daily. The Fund conducts quarterly repurchase offers. It is possible that a repurchase offer may be oversubscribed, and shareholders may only be able to have a portion of their shares repurchased.
Bond prices may decline during periods of rising interest rates. Credit risk is the risk that an issuer of a debt security may not pay its debt. The value of mortgage-backed securities will be influenced by the factors affecting the housing market. In periods when dealer inventories of bonds are low in relation to market size, there is the potential for decreased liquidity and increased price volatility in the fixed income markets. The Fund has received an exemptive order allowing co-investment with other Thrivent accounts, which may give rise to actual or perceived conflicts of interest and subject the Fund to the risk of regulatory changes and regulatory actions. The Fund may require a period of time before it is fully invested in securities that achieve a desired portfolio composition for the Fund’s investment strategy.
These and other risks are described in the Fund’s prospectus.