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Thrivent Interval Funds

Thrivent Church Loan and Income Fund
XCLIX | Class S

Offered through financial professionals

Thrivent Church Loan and Income Fund is a unique offering from Thrivent that is available exclusively through financial professionals. Thrivent is a membership-owned fraternal organization as well as a holistic financial services organization, providing financial advice, investments, insurance, banking and generosity programs to help people make the most of all they’ve been given.

Investing for impact

The Fund makes a positive impact with churches and other Christian organizations by providing financing that can be used to improve facilities, expand outreach and solidify the common bond throughout the Christian community.1

Making a difference

Read about impacts made across the country within the Christian community during 2020 in the Annual Impact Report.

Inception date: September 28, 2018

Fund highlights

Inception date

9/28/2018

Net asset value

N/A

Daily NAV change

N/A

(as of N/A)

Year to date return

-1.22%

1 year return

-0.38%

(as of 10/29/2021)

Net annual fund operating expenses

1.00%

Sales charge

None

Quarterly repurchase offer period open for Q4 2021

The Fund’s quarterly repurchase offer begins on November 19, 2021 and ends on December 15, 2021. If shareholders do not wish to tender any shares to the Fund, they do not need to take any action. The fund is offering 20% of its outstanding shares.

Important dates

  • Redemption request deadline: December 15, 2021 at 4:00 p.m. Eastern Time
  • Redemption pricing date: December 16, 2021
  • Redemption payment deadline: No later than December 24, 2021

Documents

Repurchase requests must be submitted by December 15, 2021 at 4:00 p.m. Eastern time. Shareholders can withdraw or modify their submitted request any time before the deadline. As a reminder, the fund does not provide daily liquidity and the next opportunity for shareholders to redeem shares will be in February 2022. 


Average Annualized Returns

as of 10/29/2021
1.00% Net annual fund operating expenses
3.39% 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.


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.


Investing for impact

Fred Johnson, Senior Portfolio Manager, Church Loans Thrivent Asset Management, discusses this mission driven investment and its impact on the Christian community.

The story of Judson Baptist Church

Pastor Dr. Jeff Mims and Todd Howell, Pastor of Administration, of the Judson Baptist Church share how the Thrivent Church Loan & Income Fund aided in fulfilling the vision they had for their church community.

 A unique investment

Dan Chouanard, Vice President, Thrivent Distributors, LLC, breaks down the features of the Thrivent Church Loan & Income Fund that make it a truly unique investment.

Fund Overview

Description

This fund seeks to produce income by investing in church loans and other debt securities. These church loans are privately issued mortgages to churches and other U.S. non-profit organizations with a stated Christian mission. The Fund will also invest in mortgage-backed securities and may also invest in other types of securities, including derivatives. Churches borrow to fund growth in their congregations and their ministries. Church loans in the Fund are directly originated and underwritten by Thrivent, which has been an active church lender for over 100 years. As an interval fund, to the extent consistent with the applicable liquidity requirements for interval funds, the Fund may invest without limit in illiquid securities, such as church loans.

Investment strategy

The Fund will invest a majority of its assets in church loans and the remainder in other debt securities, such as mortgage-backed securities and cash. The church loan segment of the Fund aims to provide impact and income, while the mortgage-backed segment seeks to provide income and liquidity for the quarterly redemption process. The portfolio management team works with Thrivent’s Church Financing group to source and structure the church loans. They use various research techniques, both quantitative and qualitative, to assess a borrower’s ability to repay the loan. The portfolio is constructed through a bottom-up process and is not managed to a target duration or yield, although these and other factors are considered by the Adviser.

Risks

The Fund invests primarily in church loans and mortgage-backed securities. The value of the Fund is influenced by factors impacting the overall market, debt securities and specific issuers . The Adviser's assessment of investments may prove incorrect, resulting in losses or poor performance. The Fund is a non-diversified closed-end interval fund with a quarterly repurchase option. An investment in the Fund’s shares should be considered a long-term investment with risks, including concentration risk, limited liquidity and the risk of a loss of some or all of the amount invested.

The church loans in which the Fund invests are mortgage loans to U.S. non-profit organizations with a stated Christian mission. The church loans are typically not listed on any national securities exchange and no active trading market exists for them. These church loans are primarily backed by real estate and are vulnerable to factors that affect the real estate market. Certain factors specific to churches may impact a borrower’s finances and its ability to make payments. Churches rely on voluntary contributions from their congregations for their primary source of income, which may be used to repay church loans. The membership of a church, the attendance of its members, or the per capita contributions of its members may not remain constant or may decrease, which could have a negative impact on the ability of a church to repay a loan. Loans are subject to a number of risks including credit risk, default risk, refinance risk and modification risk. Credit risk is the risk that an issuer of a debt security may not pay its debt. 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. The value of mortgage-backed securities will be influenced by the factors affecting the housing market. Bond prices may decline during periods of rising interest rates. Markets may also be impacted by domestic or global events, including public health threats, terrorism, natural disasters or similar events. The London Interbank Offered Rate (LIBOR) is being phased out, which brings uncertainty to instruments tied to it. 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 actions. These and other risks are described in the Fund’s prospectus.

Portfolio management team

Fred Johnson
CPA (inactive)
Portfolio Manager
Church Loans

Fred joined Thrivent Financial in 1987 and has served as a portfolio manager for Thrivent Church Loan and Income Fund since 2018. He has served as the senior portfolio manager of Thrivent’s church loan portfolio and director of the Church and Institution Financing department since 2004. Prior to this Fred held leadership roles in Thrivent’s transfer agent, broker dealer, and investment operations departments.

Meg Spangler
Associate Portfolio Manager
Church Loans
 

Meg joined Thrivent Financial in 1999 and has served as an associate portfolio manager for Thrivent Church Loan and Income Fund since 2018. She is the associate portfolio manager for Thrivent’s church loan portfolio and has been in that role since 2004.  Meg currently also serves as the director of the Commercial Loan Servicing area. Prior to 2004, Meg held leadership roles in the investment operations department.

Greg Anderson, CFA
Portfolio Manager
Securitized Assets
 

Greg joined Thrivent Financial in 1997 and has served as a portfolio manager for Thrivent Church Loan and Income Fund since 2018. He is the vice president of fixed income overseeing Thrivent’s General Account investment strategies. He has served as a senior portfolio manager for various General Account and mutual fund fixed income portfolios since 2000. Prior to this, Greg held a variety of positions including corporate bond investment analyst.

Buying and selling shares

The Fund is a closed-end interval fund that allows investors to purchase shares daily and sell them quarterly on a predetermined date.

  • Subscriptions: Daily
  • Redemption/Repurchase Frequency: Quarterly
  • Redemption/Repurchase Fee: None3
  • Redemption/Repurchases Offered: March, June, September, December

Minimum Investment:

  • Initial (non-retirement): $2,000
  • Initial (IRA, tax-deferred): $1,000
  • Subsequent: $50

 

Dividends from U.S. Government Obligations for 2020

For state income tax purposes, several states allow “pass-through” treatment of interval fund dividends derived from interest on U.S. government obligations. To calculate the number of dividends qualifying for pass-through treatment, multiply the amount in Box 1a of your Form 1099-DIV by the percentages that apply to your state.

The types of government securities that qualify for such treatment vary by state. Please consult with a tax advisor to determine which, if any, of the obligations listed in the following table may be exempt from your state income tax.

At Thrivent, we recommend you consult your tax advisor to make sure you’re getting the most out of your investments. Thrivent and their representatives cannot provide legal or tax advice.

Type of Government Obligation

U.S. Treasury Bonds: 0.16%

U.S. Government Agencies Total: 5.14%

  • Federal Agricultural Mortgage Corporation  0.07%
  • Federal Deposit Insurance Corporation  0.00%
  • Federal Farm Credit Bank  0.07%
  • Federal Home Loan Bank  0.36%
  • Federal Home Loan Mortgage Corporation  0.08%
  • Federal National Mortgage Association  4.56%
  • Financing Corporation  0.00%
  • Government National Mortgage Association  0.00%
  • Overseas Private Investment Corporation  0.00%
  • Resolution Funding Corporation  0.00%
  • Student Loan Marketing Association  0.00%
  • Tennessee Valley Authority  0.00%
  • Small Business Administration 0.00%
  • Small Business Investment Companies  0.00%
  • Housing and Urban Development  0.00%

Fund documents

Fund

Prospectus & Fund Documents

Statement of Additional Information

Annual Report

Semi-Annual Report

Learn more about the Fund's potential impact.

Hear about the impact made within the Christian community by Thrivent and its Church Financing Group.4

Did you know? Thrivent made its first church loan in 1905 to Zion Lutheran Church in Rhinelander, Wisconsin, to help them rebuild after a fire.

1 Thrivent Church Loan and Income Fund portfolio management team works with Thrivent Church Finance group to source and structure the loans in the portfolio.

2 The Fund does not currently charge a repurchase fee. However, the Fund may introduce a repurchase fee in the future of up to 2% on shares accepted for repurchase, subject to approval of the Fund Board.

3 The information about the Thrivent Church Financing Group is provided for informational purposes only and may not be illustrative of church loans included in the Fund's portfolio.

 

Interval Funds


PRIVACY & SECURITY
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Investing involves risks, including the possible loss of principal. The prospectus contains more complete information on the investment objectives, risks, charges and expenses of the fund, and other information, which investors should read and consider carefully before investing. Prospectuses are available at thriventintervalfunds.com or by calling 800-847-4836.

No communication or content on this website, including investment analysis tools and information about Thrivent Church Loan and Income Fund, is intended to provide investment advice or recommendations of any kind nor is it a solicitation to buy or an offer to sell any security and may not be relied upon as such. The information provided is also not intended as a source for tax, legal or accounting advice. Please consult with a legal and/or tax professional for specific information regarding your individual situation. Thrivent Distributors, LLC has undertaken no review of the individual circumstances of any investor and makes no representations with respect to the suitability of any investment for a particular investor.

The distributor for the Thrivent Church Loan and Income Fund is Thrivent Distributors, LLC, a registered broker-dealer and member of FINRA/SIPC. Any purchase, sale or redemption of the Thrivent Church Loan and Income Fund will be executed through the transfer agent, Thrivent Financial Investor Services Inc., Asset management services provided by Thrivent Asset Management, LLC, an SEC-registered investment adviser. Thrivent Distributors, LLC, Thrivent Financial Investor Services Inc, and Thrivent Asset Management, LLC are subsidiaries of Thrivent, the marketing name for Thrivent Financial for Lutherans.