UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: 811-21622
Thrivent Financial Securities Lending Trust
(Exact name of registrant as specified in charter)
625 Fourth Avenue South
Minneapolis, Minnesota 55415
(Address of principal executive offices) (Zip code)
David S. Royal, Secretary
625 Fourth Avenue South
Minneapolis, Minnesota 55415
(Name and address of agent for service)
Registrant's telephone number, including area code: (612) 340-4249
Date of fiscal year end: October 31
Date of reporting period: October 31, 2006
Item 1. Report to Stockholders
$/page=-->
THRIVENT FINANCIAL SECURITIES LENDING TRUST
William D. Stouten, Portfolio Manager
The Trust seeks to maximize current income to the extent consistent with the preservation of capital and liquidity, and maintain a stable $1.00 per share net asset value by investing in dollar-denominated securities with remaining maturity of one year or less.
We kept the Trust’s weighted-average maturity shorter than the peer group during the 12-month period ended Oct. 31, 2006, to produce a yield that matched or exceeded the federal funds target rate throughout the period. We remain cognizant of the need to achieve a flexible yield, and will continue to manage the Trust with the liquidity necessary to thrive under both expected and unexpected interest rate changes in the federal funds target rate.
THRIVENT FINANCIAL SECURITIES LENDING TRUST FUND | ||
AS OF OCTOBER 31, 2006* | ||
7-Day Yield | 5.31% | |
7-Day Effective Yield | 5.46% | |
Average Annual Total Returns** | ||
Since Inception, | ||
For the Period Ended October 31, 2006 | 1-Year | 9/16/2004 |
Total Return | 4.93% | 3.79% |
* Seven-day yields of the Thrivent Financial Securities Lending Trust refer to the income generated by an investment in the Trust over a specified seven-day period. Effective yields reflect the reinvestment of income. Yields are subject to daily fluctuation and should not be considered an indication of future results.
** Past performance is not an indication of future results. Investing in a mutual fund involves risks, including the possible loss of principal. The prospectus contains more complete information on the investment objectives, risks, charges and expenses of the investment company which investors should read and consider carefully before investing. Annualized total returns represent past performance and reflect changes in share prices, the reinvestment of all dividends and capital gains, and the effects of compounding. The returns shown do not reflect taxes a shareholder would pay on distributions or redemptions.
1
Shareholder Expense Example
(Unaudited)
As a shareholder of the Trust, you incur two types of costs: (1) transaction costs, including ongoing cost, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Trust 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 May 1, 2006, through October 31, 2006.
Actual Expenses
The first line of the table below 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
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Trust's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Trust'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 Trust 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning | Ending | Expenses | ||
Account | Account | Paid During | Annualized | |
Value | Value | Period* | Expense | |
5/1/2006 | 10/31/2006 | 5/1/2006 - 10/31/2006 | Ratio | |
Thrivent Financial Securities Lending Trust | ||||
Actual | $ 1,000 | $ 1,027 | $ 0.25 | 0.05% |
Hypothetical** | $ 1,000 | $ 1,025 | $ 0.25 | 0.05% |
* Expenses are equal to the Trust's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 to reflect the one-half year period.
** Assuming 5% total return before expenses
2
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Trustees of Thrivent Financial Securities Lending Trust:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Thrivent Financial Securities Lending Trust (the "Trust") at October 31, 2006, the results of its operations, changes in its net assets and financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those s tandards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
December 21, 2006
3
SCHEDULE OF INVESTMENTS
AS OF OCTOBER 31, 2006
Thrivent Financial Securities Lending Trust | ||||
Principal | Interest | Maturity | ||
Amount | Certificates of Deposit (1.1%) | Rate(+) | Date | Value |
$14,400,000 | BNP Paribas Chicago | 4.790% | 12/27/2006 | $14,400,000 |
17,310,000 | Dexia Bank NY | 4.525 | 11/17/2006 | 17,293,742 |
14,730,000 | Royal Bank of Canada NY | 4.750 | 12/4/2006 | 14,730,000 |
Total Certificates of Deposit | $46,423,742 | |||
Principal | Interest | Maturity | ||
Amount | Commercial Paper (66.4%) | Rate(+) | Date | Value |
Asset-Backed Commercial Paper (1.0%) | ||||
$10,000,000 | Corporate Asset Finance Company, LLC | 5.260% | 12/5/2006 | $9,950,322 |
30,000,000 | GOVCO, Inc. | 5.270 | 11/13/2006 | 29,947,300 |
Total Asset-Backed Commercial Paper | 39,897,622 | |||
Banking-Domestic (3.1%) | ||||
7,300,000 | Bank of America Corporation | 5.250 | 12/14/2006 | 7,254,223 |
9,000,000 | Bank of America Corporation | 5.250 | 12/18/2006 | 8,938,312 |
30,000,000 | Barclays Bank plc | 5.230 | 12/28/2006 | 29,751,575 |
5,368,000 | Barclays US Funding Corporation, LLC | 5.260 | 11/28/2006 | 5,346,823 |
5,100,000 | Barclays US Funding Corporation, LLC | 5.280 | 11/21/2006 | 5,085,040 |
30,000,000 | Blue Spice, LLC | 5.260 | 11/27/2006 | 29,886,033 |
26,800,000 | Cooperatieve Centrale Raiffeisen | 5.250 | 11/22/2006 | 26,717,925 |
Boerenleen Bank | ||||
15,000,000 | Depfa Bank plc | 5.250 | 12/12/2006 | 14,910,312 |
Total Banking-Domestic | 127,890,243 | |||
Banking-Foreign (0.9%) | ||||
30,000,000 | DnB NORBank ASA | 5.310 | 11/1/2006 | 30,000,000 |
7,500,000 | HBOS Treasury Services plc | 5.270 | 12/8/2006 | 7,459,531 |
Total Banking-Foreign | 37,459,531 | |||
Basic Industry (1.0%) | ||||
40,000,000 | Air Products and Chemicals, Inc. | 5.250 | 11/7/2006 | 39,965,000 |
4
Total Basic Industry | 39,965,000 | ||
Brokerage (0.7%) | |||
30,000,000 Citigroup Funding, Inc. | 5.250 | 12/5/2006 | 29,851,250 |
Total Brokerage | 29,851,250 | ||
SCHEDULE OF INVESTMENTS
AS OF OCTOBER 31, 2006
Principal | Interest | Maturity | |||
Amount | Commercial Paper (66.4%) | Rate(+) | Date | Value | |
Consumer Cyclical (4.2%) | |||||
$3,650,000 | American Honda Finance Corporation | 5.250% | 12/5/2006 | $3,631,902 | |
3,650,000 | American Honda Finance Corporation | 5.250 | 12/8/2006 | 3,630,305 | |
10,000,000 | Golden Funding Corporation | 5.275 | 11/13/2006 | 9,982,417 | |
5,000,000 | Toyota Financial Services de Puerto Rico, Inc. | 5.110 | 3/30/2007 | 5,000,000 | |
30,000,000 | Toyota Motor Credit Corporation | 5.250 | 12/20/2006 | 29,785,625 | |
100,000,000 | Wal-Mart Funding Corporation | 5.260 | 11/28/2006 | 99,605,502 | |
22,450,000 | Yale University | 5.510 | 12/6/2006 | 22,329,734 | |
Total Consumer Cyclical | 173,965,485 | ||||
Consumer Non-Cyclical (3.1%) | |||||
13,100,000 | Alcon Capital Corporation | 5.300 | 11/1/2006 | 13,100,000 | |
20,000,000 | Louis Dreyfus Corporation | 5.260 | 11/20/2006 | 19,944,478 | |
15,000,000 | Louis Dreyfus Corporation | 5.260 | 11/21/2006 | 14,956,167 | |
30,000,000 | Louis Dreyfus Corporation | 5.260 | 12/6/2006 | 29,846,583 | |
18,000,000 | Louis Dreyfus Corporation | 5.260 | 12/13/2006 | 17,889,540 | |
29,900,000 | Nestle Capital Corporation | 5.280 | 11/1/2006 | 29,900,000 | |
Total Consumer Non-Cyclical | 125,636,768 | ||||
Finance (51.2%) | |||||
30,000,000 | Amsterdam Funding Corporation ± | 5.270 | 11/24/2006 | 29,898,992 | |
20,000,000 | Amsterdam Funding Corporation ± | 5.260 | 12/7/2006 | 19,894,800 | |
4,750,000 | Amsterdam Funding Corporation | 5.260 | 12/14/2006 | 4,720,157 | |
30,776,000 | Ascension Health | 5.260 | 11/16/2006 | 30,708,549 | |
25,000,000 | Aspen Funding Corporation | 5.265 | 11/22/2006 | 24,923,219 | |
30,000,000 | Aspen Funding Corporation | 5.260 | 12/4/2006 | 29,855,350 | |
30,000,000 | Barton Capital Corporation | 5.270 | 11/2/2006 | 29,995,608 | |
17,220,000 | Barton Capital Corporation | 5.260 | 11/3/2006 | 17,214,968 | |
30,000,000 | Barton Capital Corporation | 5.270 | 11/7/2006 | 29,973,650 | |
30,000,000 | Barton Capital Corporation | 5.260 | 11/20/2006 | 29,916,717 | |
11,976,000 | Barton Capital Corporation | 5.260 | 11/21/2006 | 11,941,003 | |
12,200,000 | Bryant Park Funding, LLC | 5.270 | 11/7/2006 | 12,189,284 | |
39,663,000 | Bryant Park Funding, LLC | 5.260 | 11/20/2006 | 39,552,891 | |
20,000,000 | Bryant Park Funding, LLC | 5.270 | 11/22/2006 | 19,938,517 | |
5,852,000 | Bryant Park Funding, LLC | 5.260 | 11/27/2006 | 5,829,769 | |
7,305,000 | Bryant Park Funding, LLC | 5.260 | 12/19/2006 | 7,253,768 |
5
15,477,000 | CAFCO, LLC | 5.270 | 11/15/2006 | 15,445,281 |
25,000,000 | Chariot Funding, LLC | 5.260 | 11/29/2006 | 24,897,722 |
30,000,000 | Chariot Funding, LLC | 5.260 | 12/8/2006 | 29,837,817 |
7,300,000 | Citigroup Funding, Inc. | 5.250 | 11/28/2006 | 7,271,256 |
30,000,000 | Citigroup Funding, Inc. | 5.250 | 12/6/2006 | 29,846,875 |
30,000,000 | Citigroup Funding, Inc. | 5.250 | 12/7/2006 | 29,842,500 |
25,000,000 | Corporate Asset Finance Company, LLC | 5.260 | 11/30/2006 | 24,894,069 |
SCHEDULE OF INVESTMENTS
AS OF OCTOBER 31, 2006
Principal | Interest | Maturity | ||
Amount | Commercial Paper (66.4%) | Rate(+) | Date | Value |
$8,600,000 | Corporate Asset Finance Company, LLC | 5.250% | 12/21/2006 | $8,537,292 |
30,000,000 | Corporate Receivables Corporation | 5.250 | 11/28/2006 | 29,881,875 |
Funding, LLC | ||||
28,000,000 | Corporate Receivables Corporation | 5.260 | 12/5/2006 | 27,860,902 |
Funding, LLC | ||||
30,000,000 | Falcon Asset Securitization Corporation | 5.260 | 11/27/2006 | 29,886,033 |
30,000,000 | Falcon Asset Securitization Corporation | 5.270 | 12/4/2006 | 29,855,075 |
11,276,000 | Fountain Square Commercial Funding | 5.270 | 11/21/2006 | 11,242,986 |
Corporation | ||||
15,000,000 | Fountain Square Commercial Funding | 5.270 | 11/29/2006 | 14,938,517 |
Corporation | ||||
8,957,000 | Fountain Square Commercial Funding | 5.280 | 12/18/2006 | 8,895,256 |
Corporation | ||||
35,000,000 | Galaxy Funding, Inc. | 5.320 | 11/1/2006 | 35,000,000 |
25,000,000 | Grampian Funding, LLC | 5.260 | 11/17/2006 | 24,941,556 |
25,000,000 | Grampian Funding, LLC | 5.235 | 3/1/2007 | 24,563,750 |
25,000,000 | Greyhawk Funding, LLC | 5.265 | 11/14/2006 | 24,952,469 |
25,000,000 | Greyhawk Funding, LLC | 5.265 | 11/16/2006 | 24,945,156 |
21,659,000 | Jupiter Securitization Company, LLC | 5.270 | 11/20/2006 | 21,598,758 |
30,000,000 | Kitty Hawk Funding Corporation | 5.270 | 11/16/2006 | 29,934,125 |
30,000,000 | Kitty Hawk Funding Corporation | 5.260 | 11/20/2006 | 29,916,717 |
27,734,000 | Kitty Hawk Funding Corporation | 5.260 | 11/29/2006 | 27,620,537 |
10,000,000 | Liberty Harbour CDO, Inc. | 5.280 | 11/10/2006 | 9,986,800 |
30,000,000 | Liberty Harbour CDO, Inc. | 5.290 | 11/13/2006 | 29,947,100 |
10,000,000 | Liberty Harbour CDO, Inc. | 5.280 | 11/15/2006 | 9,979,467 |
15,123,000 | Nieuw Amsterdam Receivables Corporation | 5.270 | 11/6/2006 | 15,111,931 |
19,900,000 | Nieuw Amsterdam Receivables Corporation | 5.270 | 11/10/2006 | 19,873,782 |
12,600,000 | Nieuw Amsterdam Receivables Corporation | 5.270 | 11/15/2006 | 12,574,177 |
48,000,000 | Nieuw Amsterdam Receivables Corporation | 5.270 | 11/29/2006 | 47,803,366 |
21,109,000 | Nieuw Amsterdam Receivables Corporation | 5.260 | 11/30/2006 | 21,019,556 |
6
4,125,000 | Nieuw Amsterdam Receivables Corporation | 5.260 | 1/22/2007 | 4,075,578 |
30,000,000 | North Sea Funding, LLC | 5.270 | 11/17/2006 | 29,929,733 |
30,000,000 | North Sea Funding, LLC | 5.270 | 11/20/2006 | 29,916,558 |
10,138,000 | North Sea Funding, LLC | 5.260 | 1/25/2007 | 10,012,092 |
4,132,000 | North Sea Funding, LLC | 5.260 | 1/29/2007 | 4,078,268 |
30,000,000 | Old Line Funding, LLC | 5.280 | 11/9/2006 | 29,964,800 |
30,000,000 | Old Line Funding, LLC | 5.260 | 11/15/2006 | 29,938,633 |
22,000,000 | Old Line Funding, LLC | 5.260 | 11/21/2006 | 21,935,711 |
25,000,000 | Old Line Funding, LLC | 5.260 | 11/28/2006 | 24,901,375 |
25,000,000 | Old Line Funding, LLC | 5.260 | 12/14/2006 | 24,842,931 |
15,400,000 | Paradigm Funding, LLC | 5.260 | 11/30/2006 | 15,334,747 |
22,000,000 | Park Avenue Receivables Corporation | 5.260 | 11/6/2006 | 21,983,928 |
30,000,000 | Park Avenue Receivables Corporation | 5.270 | 11/13/2006 | 29,947,300 |
25,000,000 | Park Avenue Receivables Corporation | 5.260 | 11/21/2006 | 24,926,944 |
25,000,000 | Park Avenue Receivables Corporation | 5.260 | 11/27/2006 | 24,905,028 |
SCHEDULE OF INVESTMENTS
AS OF OCTOBER 31, 2006
Principal | Interest | Maturity | ||
Amount | Commercial Paper (66.4%) | Rate(+) | Date | Value |
$30,000,000 | Park Avenue Receivables Corporation | 5.270% | 11/29/2006 | $29,877,033 |
22,303,000 | Ranger Funding Company, LLC | 5.260 | 11/28/2006 | 22,215,015 |
30,000,000 | Ranger Funding Company, LLC | 5.270 | 12/4/2006 | 29,855,075 |
25,349,000 | Ranger Funding Company, LLC | 5.250 | 12/13/2006 | 25,193,737 |
28,000,000 | Sheffield Receivables Corporation | 5.320 | 11/1/2006 | 28,000,000 |
30,000,000 | Sheffield Receivables Corporation | 5.260 | 11/3/2006 | 29,991,233 |
30,000,000 | Sheffield Receivables Corporation | 5.270 | 11/9/2006 | 29,964,867 |
20,221,000 | Sheffield Receivables Corporation | 5.300 | 11/10/2006 | 20,194,207 |
30,000,000 | Sheffield Receivables Corporation | 5.260 | 12/7/2006 | 29,842,200 |
30,000,000 | Solitaire Funding, LLC | 5.270 | 11/17/2006 | 29,929,733 |
28,271,000 | Thames Asset Global Securitization, Inc. | 5.260 | 11/16/2006 | 28,209,039 |
29,024,000 | Thames Asset Global Securitization, Inc. | 5.270 | 11/21/2006 | 28,939,024 |
13,000,000 | Thames Asset Global Securitization, Inc. | 5.270 | 12/5/2006 | 12,935,296 |
18,884,000 | Thames Asset Global Securitization, Inc. | 5.260 | 12/14/2006 | 18,765,356 |
24,188,000 | Three Pillars, Inc. | 5.270 | 11/15/2006 | 24,138,428 |
15,000,000 | Thunder Bay Funding, Inc. | 5.270 | 11/9/2006 | 14,982,433 |
23,144,000 | Thunder Bay Funding, Inc. | 5.270 | 11/16/2006 | 23,093,276 |
20,041,000 | Thunder Bay Funding, Inc. | 5.260 | 11/27/2006 | 19,964,866 |
7 | |
28,319,000 | Thunder Bay Funding, Inc. | 5.270 | 11/28/2006 | 28,207,069 |
23,500,000 | Tulip Funding Corporation | 5.270 | 11/3/2006 | 23,493,120 |
30,000,000 | Tulip Funding Corporation | 5.270 | 11/30/2006 | 29,872,642 |
18,000,000 | Windmill Funding Corporation | 5.270 | 11/9/2006 | 17,978,920 |
24,147,000 | Windmill Funding Corporation | 5.260 | 11/16/2006 | 24,094,078 |
27,000,000 | Yorktown Capital, LLC | 5.260 | 11/8/2006 | 26,972,385 |
28,000,000 | Yorktown Capital, LLC | 5.265 | 11/20/2006 | 27,922,195 |
25,000,000 | Yorktown Capital, LLC | 5.260 | 11/30/2006 | 24,894,069 |
25,000,000 | Yorktown Capital, LLC | 5.260 | 12/6/2006 | 24,872,153 |
25,000,000 | Yorktown Capital, LLC | 5.260 | 12/8/2006 | 24,864,847 |
8,000,000 | Yorktown Capital, LLC | 5.260 | 12/14/2006 | 7,949,738 |
Total Finance | 2,110,615,605 | |||
Insurance (1.2%) | ||||
10,000,000 | Curzon Funding, LLC | 5.380 | 11/3/2006 | 9,997,078 |
18,000,000 | Curzon Funding, LLC | 5.270 | 11/15/2006 | 17,963,110 |
23,465,000 | Swiss Re Financial Products | 5.270 | 11/13/2006 | 23,423,780 |
Total Insurance | 51,383,968 | |||
Total Commercial Paper | $2,736,665,472 | |||
SCHEDULE OF INVESTMENTS | ||||
AS OF OCTOBER 31, 2006 | ||||
Shares or | ||||
Principal | Interest | Maturity | ||
Amount | Other (6.1%) | Rate(+) | Date | Value |
Euro Time Deposits (6.1%) | ||||
$66,825,000 | BNP Paribas Paris Euro Time Deposit | 5.310% | 11/1/2006 | $66,825,000 |
85,000,000 | Rabobank Nederland | 5.313 | 11/1/2006 | 85,000,000 |
100,000,000 | Societe Generale | 5.313 | 11/1/2006 | 100,000,000 |
Total Euro Time Deposits | 251,825,000 | |||
Mutual Funds (<0.1%) | ||||
555,000 | Barclays Prime Money Market Fund | 3.900 | N/A | 555,000 |
65,000 | Morgan Stanley Institutional Liquidity Fund | 5.260 | N/A | 65,000 |
48,663 | Primary Fund Institutional Class | 3.860 | N/A | 48,663 |
Total Mutual Funds | 668,663 | |||
Total Other | $252,493,663 | |||
8
Principal | Interest | Maturity | ||||
Amount | Public Corporate (1.0%) | Rate(+) | Date | Value | ||
Banking-Domestic (0.8%) | ||||||
$27,000,000 | HSBC BANK USA, Inc. | 5.410% | 12/14/2006 | $27,002,648 | ||
3,735,000 | MBNA Corporation | 6.250 | 1/17/2007 | 3,746,275 | ||
Total Banking-Domestic | 30,748,923 | |||||
Brokerage (<0.1%) | ||||||
1,675,000 | Goldman Sachs Group, Inc. | 7.200 | 11/1/2006 | 1,675,000 | ||
Total Brokerage | 1,675,000 | |||||
Finance (0.2%) | ||||||
7,090,000 | General Electric Capital Corporation | 5.390 | 12/8/2006 | 7,090,422 | ||
Total Finance | 7,090,422 | |||||
Total Public Corporate | $39,514,345 | |||||
Principal | Interest | Maturity | ||||
Amount | U.S. Government (0.1%) | Rate(+) | Date | Value | ||
$2,370,000 | Federal Home Loan Mortgage Corporation | 4.875% | 2/26/2007 | $2,370,000 | ||
Total U.S. Government | $2,370,000 | |||||
SCHEDULE OF INVESTMENTS
AS OF OCTOBER 31, 2006
Principal | Interest | Maturity | ||
Amount | U.S. Municipals (1.1%) | Rate(+) | Date | Value |
$20,205,000 | Los Angeles County Metropolitan | 5.260% | 11/14/2006 | $20,166,622 |
Transportation Authority Revenue Bonds | ||||
(Series A) | ||||
25,000,000 | Los Angeles County Metropolitan | 5.260 | 11/16/2006 | 24,945,208 |
Transportation Authority Revenue Bonds | ||||
(Series A) | ||||
Total U.S. Municipals | $45,111,830 | |||
Principal | Interest | Maturity | ||
Amount | Variable Rate Notes (26.1%)∞ | Rate(+) | Date | Value |
Banking-Domestic (9.4%) |
9
$25,000,000 | Bank of America Corporation | 5.315% | 11/15/2006 | $25,000,000 | |
30,000,000 | Bank of America Corporation | 5.310 | 1/23/2007 | 30,000,000 | |
25,000,000 | Bank of New York Company, Inc. | 5.310 | 11/10/2006 | 24,999,968 | |
30,000,000 | Banque Nationale de Paris NY | 5.262 | 11/3/2006 | 29,993,100 | |
35,000,000 | Cooperatieve Centrale Raiffeisen | 5.365 | 11/15/2006 | 35,000,000 | |
Boerenleen Bank | |||||
10,000,000 | Dexia Credit Local NY | 5.261 | 11/6/2006 | 9,999,961 | |
50,000,000 | Fifth Third Bancorp | 5.300 | 11/24/2006 | 50,000,000 | |
37,920,000 | HSBC USA, Inc. | 5.300 | 11/15/2006 | 37,920,000 | |
34,000,000 | Royal Bank of Canada NY | 5.293 | 11/1/2006 | 34,000,000 | |
31,135,000 | Royal Bank of Scotland plc NY | 5.265 | 11/27/2006 | 31,134,220 | |
25,000,000 | Societe Generale NY | 5.320 | 11/27/2006 | 25,000,000 | |
35,000,000 | Svenska Handelsbanken AB Ω | 5.290 | 11/21/2006 | 35,000,000 | |
20,070,000 | Wachovia Corporation | 5.410 | 11/22/2006 | 20,089,011 | |
Total Banking-Domestic | 388,136,260 | ||||
Banking-Foreign (2.8%) | |||||
21,960,000 | Bank of Ireland | 5.290 | 11/20/2006 | 21,960,000 | |
25,000,000 | BNP Paribas SA | 5.310 | 11/27/2006 | 25,000,000 | |
25,000,000 | DNB NOR ASA | 5.310 | 11/27/2006 | 25,000,000 | |
20,000,000 | Royal Bank of Scotland plc | 5.310 | 11/21/2006 | 20,000,000 | |
25,000,000 | Societe Generale | 5.293 | 11/2/2006 | 25,000,000 | |
Total Banking-Foreign | 116,960,000 | ||||
Brokerage (4.1%) | |||||
7,225,000 | Lehman Brothers Holdings, Inc. | 5.370 | 11/30/2006 | 7,228,343 | |
15,000,000 | Merrill Lynch & Company, Inc. | 5.363 | 11/1/2006 | 15,000,000 | |
25,000,000 | Merrill Lynch & Company, Inc. | 5.443 | 11/1/2006 | 25,011,499 | |
20,000,000 | Merrill Lynch & Company, Inc. | 5.570 | 11/13/2006 | 20,012,246 |
SCHEDULE OF INVESTMENTS
AS OF OCTOBER 31, 2006
Principal | Interest | Maturity | |||
Amount | Variable Rate Notes (26.1%)∞ | Rate(+) | Date | Value | |
$25,000,000 | Merrill Lynch & Company, Inc. | 5.360% | 11/15/2006 | $25,010,510 | |
25,000,000 | Merrill Lynch & Company, Inc. | 5.300 | 11/24/2006 | 25,000,000 | |
25,000,000 | Morgan Stanley | 5.330 | 11/1/2006 | 25,000,000 | |
25,000,000 | Morgan Stanley | 5.340 | 11/1/2006 | 25,000,000 | |
Total Brokerage | 167,262,598 | ||||
Consumer Cyclical (2.5%) | |||||
10,000,000 | American Honda Finance Corporation | 5.529 | 11/8/2006 | 10,005,159 | |
25,000,000 | American Honda Finance Corporation | 5.350 | 12/12/2006 | 25,000,000 | |
25,000,000 | American Honda Finance Corporation | 5.473 | 1/16/2007 | 25,018,792 | |
25,000,000 | Toyota Motor Credit Corporation | 5.270 | 11 /21/2006 | 25,000,952 |
10
18,800,000 | Wal-Mart Stores, Inc. | 5.261 | 12/28/2006 | 18,797,732 |
Total Consumer Cyclical | 103,822,635 | |||
Finance (2.4%) | ||||
4,000,000 | General Electric Capital Corporation | 5.413 | 11/1/2006 | 4,000,165 |
40,000,000 | General Electric Capital Corporation | 5.445 | 11/9/2006 | 40,017,836 |
25,000,000 | General Electric Capital Corporation | 5.280 | 11/24/2006 | 25,000,000 |
10,000,000 | HSBC Finance Corporation | 5.486 | 11/10/2006 | 10,004,937 |
20,000,000 | Union Hamilton Special Funding, LLC | 5.390 | 12/21/2006 | 20,000,000 |
Total Finance | 99,022,938 | |||
Insurance (1.2%) | ||||
25,000,000 | MBIA Global Funding, LLC | 5.280 | 11/21/2006 | 24,997,500 |
25,000,000 | MBIA Global Funding, LLC | 5.275 | 11/27/2006 | 24,999,339 |
Total Insurance | 49,996,839 | |||
U.S. Municipal (3.7%) | ||||
11,175,000 | BRCH Corporation | 5.320 | 11/8/2006 | 11,175,000 |
39,000,000 | Connecticut State Health and Educational | 3.520 | 11/1/2006 | 38,997,270 |
Facilities Authority Revenue Bonds | ||||
20,730,000 | Massachusetts Development Finance Agency | 3.580 | 11/1/2006 | 20,728,549 |
Revenue Bonds | ||||
15,000,000 | Michigan State Housing Development | 5.360 | 11/2/2006 | 15,000,000 |
Authority Revenue Bonds (Series D) |
SCHEDULE OF INVESTMENTS
AS OF OCTOBER 31, 2006
Principal | Interest | Maturity | ||||
Amount | Variable Rate Notes (26.1%)∞ | Rate(+) | Date | Value | ||
$19,200,000 | Texas State Adjustable Taxable Veterans | 5.330% | 11/1/2006 | $19,200,000 | ||
Housing Series PG Class B Revenue Bonds | ||||||
45,000,000 | Texas State Public Finance Authority Bonds | 5.350 | 11/2/2006 | 45,000,000 | ||
Total U.S. Municipal | 150,100,819 | |||||
Total Variable Rate Notes | $1,075,302,089 | |||||
11
Total Investments | |
(at amortized cost) 101.9% | $4,197,881,141 |
Other Assets and Liabilities, Net (1.9%) | (76,902,341) |
Total Net Assets 100.0% | $4,120,978,800 |
+ The interest rate shown reflects the yield, coupon rate or, for securities purchased at a discount, the discount rate at the date of purchase.
∞ Denotes variable rate obligations for which the current yield and next scheduled reset date are shown.
Ω Denotes investments purchased on a when-issued basis.
± Designated as cover for long settling trades as discussed in the Notes to Financial Statements.
Cost for federal income tax purposes is $4,197,881,141.
The accompanying Notes to Financial Statements are an integral part of this schedule.
STATEMENT OF ASSETS AND LIABILITIES
AS OF OCTOBER 31, 2006
Thrivent Financial Securities Lending Trust
Assets | |
Investments at cost | $4,197,881,141 |
Investments at value | 4,197,881,141 |
Cash | 2,425 |
Dividend and interest receivable | 6,567,103 |
Prepaid expenses | 28,346 |
Total Assets | 4,204,479,015 |
Liabilities | |
Distributions payable | 18,336,902 |
Accrued expenses | 28,694 |
12
Payable for investments purchased | 64,993,100 |
Payable to affiliate | 141,519 |
Total Liabilities | 83,500,215 |
Net Assets | |
Trust Capital (beneficial interest) | 4,120,979,058 |
Accumulated undistributed net investment loss | (2) |
Accumulated undistributed net realized loss on | |
Investments | (256) |
Total Net Assets | $4,120,978,800 |
Net Assets | $4,120,978,800 |
Shares of beneficial interest outstanding | 4,120,979,058 |
Net asset value per share | $1.00 |
The accompanying Notes to Financial Statements are an integral part of this statement.
13
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 2006
Thrivent Financial Securities Lending Trust
Investment Income | |
Dividends | $2,312,865 |
Taxable interest | 195,829,241 |
Total Investment Income | 198,142,106 |
Expenses | |
Adviser fee | 1,827,756 |
Accounting and pricing fees | 53,370 |
Audit and legal fees | 22,479 |
Custody fees | 124,957 |
Insurance expense | 70,855 |
Printing and postage fees | 2,301 |
Transfer agent fees | 54,737 |
Trustee fees | 3,136 |
Other expenses | 22,132 |
Total Expenses Before Reimbursement | 2,181,723 |
Less: | |
Reimbursement from adviser | (147,241) |
Custody earnings credit | (3,641) |
Total Net Expenses | 2,030,841 |
Net Investment Income | 196,111,265 |
Realized and Unrealized Loss on Investments | |
Net realized loss on investments | (256) |
Net Realized and Unrealized Loss on Investments | (256) |
Net Increase in Net Assets Resulting From | |
Operations | $196,111,009 |
The accompanying Notes to Financial Statements are an integral part of this statement.
14
STATEMENT OF CHANGES IN NET ASSETS
Thrivent Financial Securities Lending Trust
For the Years Ended | 10/31/2006 | 10/31/2005 |
Operations | ||
Net investment income | $196,111,265 | $116,407,705 |
Net realized gain/(loss) on investments | (256) | 77 |
Net Increase in Net Assets Resulting | ||
From Operations | 196,111,009 | 116,407,782 |
Distributions to Shareholders | ||
From net investment income | (196,111,265) | (116,407,707) |
From net realized gains | - | (5,639) |
Total Distributions to Shareholders | (196,111,265) | (116,413,346) |
Capital Stock Transactions | 256,371,796 | (77,734,437) |
Net Increase in Net Assets | 256,371,540 | (77,740,001) |
Net Assets Beginning of Period | 3,864,607,260 | 3,942,347,261 |
Net Assets End of Period | $4,120,978,800 | $3,864,607,260 |
The accompanying Notes to Financial Statements are an integral part of this statement.
15
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2006
Thrivent Financial Securities Lending Trust
A. Organization
Thrivent Financial Securities Lending Trust (the "Trust") was organized as a Massachusetts Business Trust on August 4, 2004, and is registered as an open-end management investment company under the Investment Company Act of 1940. The Trust commenced operations on September 16, 2004. All transactions in the Trust are from affiliates of the Trust.
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.
B. Significant Accounting Policies
Valuation – Securities are valued on the basis of amortized cost (which approximates value), whereby a portfolio security is valued at its cost initially, and thereafter valued to reflect a constant amortization to maturity of any discount or premium. Mutual Funds are valued at the net asset value at the close of each business day.
Federal Income Taxes – The Trust intends to comply with the requirements of the Internal Revenue Code which are applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. The Trust, accordingly, anticipates paying no Federal income taxes and no Federal income tax provision was recorded.
Recent Accounting Pronouncements – In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 48 – Accounting for Uncertainty in Income Taxes (FIN 48), that requires additional tax disclosures and the tax effects of certain tax positions to be recognized. These tax positions must meet a “more likely than not” standard that based on their technical merits, have a more than 50 percent likelihood of being sustained upon examination. FIN 48 is effective for fiscal periods beginning after December 15, 2006. At adoption, the financial statements must be adjusted to reflect only those tax positions in any open years that are more likely than not of being sustained. Management of the Fund is currently evaluating the impact that FIN 48 will have on the Fund’s financial statements.
Additionally, in September 2006, the FASB issued FASB Interpretation No. 157 – Fair Value Measurements (FAS 157). The objective of the statement is to improve the consistency and comparability of fair value measurements used in financial reporting. FAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. FAS 157 is effective for fiscal years beginning after November 15, 2007. Management of the Fund is currently evaluating the impact that FAS 157 will have on the Fund’s financial statements.
Fees Paid Indirectly – The Trust has a deposit arrangement with the custodian whereby interest earned on uninvested cash balances is used to pay a portion of custodian fees. This deposit arrangement is an alternative to overnight investments.
16
Distributions to Shareholders – Net investment income is distributed to each shareholder as a dividend. Dividends from the Trust 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.
Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America require 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.
Other – For financial statement purposes, investment security transactions are accounted for on the trade date. Interest income is recognized on an accrual basis. Discount and premium are amortized over the life of the respective securities on the interest method. Realized gains or losses on sales are determined on a specific cost identification basis. Generally accepted accounting principles require permanent financial reporting and tax differences to be reclassified to trust capital. No reclassifications were necessary at October 31, 2006.
C. Investment Advisory Management Fees and Transactions with Related Parties
The Trust has entered into an Investment Advisory Agreement with Thrivent Financial for Lutherans (the "Adviser") under which the Trust pays a fee for investment advisory services. The annual rate of fees under the Investment Advisory Agreement are calculated at 0.045% of the average daily net assets of 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. Each participant's deferred compensation account will increase or decrease as if it were invested in shares of the Thrivent Mutual Funds based on their choice.
Trustees not participating in the above plan received $1,466 in fees from the Trust for the year ended October 31, 2006. No remuneration has been paid by the Trust to any of the officers or affiliated Trustees of the Trust. In addition, the Trust reimbursed certain reasonable expenses incurred in relation to attendance at the meetings.
The Adviser has agreed to voluntarily reimburse the Trust for all expenses in excess of 0.05% of average daily net assets. This voluntary expense reimbursement may be discontinued at any time.
D. Federal Income Tax Information
During the year ended October 31, 2006, and the year ended October 31, 2005, the Trust distributed $196,111,265 and $116,413,346 from ordinary income, respectively. At October 31, 2006, undistributed ordinary income for tax purposes was $3,736. At October 31, 2006, the Trust had accumulated a $256 net realized capital loss carryover expiring on October 31, 2014.
E. Trust Transactions
Transactions in trust shares were as follows:
Shares | Amount | |
For the Year Ended October 31, 2006 |
17
Sold | 19,229,220,950 | $19,229,220,950 |
Redeemed | (18,972,849,154) | (18,972,849,154) |
Net Change | 256,371,796 | $256,371,796 |
For the Year Ended October 31,2005 | ||
Sold | 21,908,591,039 | $21,908,591,039 |
Redeemed | (21,986,325,476) | (21,986,325,476) |
Net Change | (77,734,437) | $(77,734,437) |
18
FINANCIAL HIGHLIGHTS
PER SHARE INFORMATION (a)
Thrivent Financial Securities Lending Trust
Year Ended | Year Ended | Period Ended | |
10/31/2006 | 10/31/2005 | 10/31/2004(e) | |
Net asset value: Beginning of Period | $1.00 | $1.00 | $1.00 |
Income from Investment Operations: | |||
Net investment income | 0.05 | 0.03 | 0.00 |
Net realized and unrealized gains on | |||
investments (b) | -- | -- | -- |
Total from Investment Operations | 0.05 | 0.03 | 0.00 |
Distributions from: | |||
Net investment income | (0.05) | (0.03) | 0.00 |
Total Distributions | (0.05) | (0.03) | 0.00 |
Net asset value: End of Period | $1.00 | $1.00 | $1.00 |
Total return (c) | 4.93% | 2.91% | 0.22% |
Net assets: end of period (in millions) | $4,121.0 | $3,864.6 | $3,942.3 |
Ratio of expenses to average net assets (d) | 0.05% | 0.05% | 0.05% |
Ratio of net investment income to average | |||
net assets (d) | 4.82% | 2.89% | 1.80% |
Portfolio turnover rate | N/A | N/A | N/A |
If the Fund had paid all its expenses without the adviser’s voluntary expense | |||
reimbursement, the ratios would have been as follows: | |||
Ratio of expenses to average net assets (d) | 0.05% | 0.05% | 0.05% |
Ratio of net investment income to average | |||
net assets (d) | 4.82% | 2.89% | 1.80% |
(a) All per share amounts have been rounded to the nearest cent.
(b) 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 fund shares.
(c) Total investment return assumes dividend reinvestment and does not reflect any deduction for sales charges.
(d) Computed on an annualized basis for periods less than one year.
(e) Since Fund inception, September 16, 2004.
The accompanying notes to the financial statements are an integral part of this
19
schedule.
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. 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 recent 12-month period ended June 30 by calling 1-800-847-4836. 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 recent 12-month period ended June 30 at the Thrivent Financial web site (www.thrivent.com) or the SEC web site (www.sec.gov).
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS
The Trust files its Schedule of Portfolio Holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. You may request a free copy of the Trust’s Forms N-Q by calling 1-800-847-4836. The Trust’s Forms N-Q also are available on the SEC web site (www.sec.gov). You also may review and copy the Forms N-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 calling 1-202-551-8090.
20
BOARD OF TRUSTEES AND OFFICERS
The following table provides information about the Trustees and Officers of the Trust. In addition to serving as a Trustee of the Trust, each Trustee also serves as:
• Director of Thrivent Series Fund, Inc., a registered investment company consisting of 31 Portfolios that serve as underlying funds for variable contracts issued by Thrivent Financial for Lutherans ("Thrivent Financial") and Thrivent Life Insurance Company ("TLIC") and investment options in the retirement plan offered by Thrivent Financial.
• Trustee of Thrivent Mutual Funds, a registered investment company consisting of 29 Series.
The 29 series of Thrivent mutual funds, 31 Portfolios of Thrivent Series Fund, Inc., and Thrivent Financial Securities Lending Trust are referred to herein as the "Fund Complex." The Statement of Information includes additional information about the Trustees and is available, without charge, by calling 1-800-847-4836.
INTERESTED TRUSTEE(1)
Position | Number of | |||
with Trust | Portfolios in | Principal Occupation | Other Directorships Held by | |
Name, Address | and Length | Fund Complex | During the Past 5 | Trustee |
and Age | of Service(2) | Overseen by | Years | |
Trustee | ||||
Pamela J. | President | 61 | Executive Vice | Director, Minnesota Public |
Moret | since 2002 | President, Marketing and | Radio; Director, Banta | |
625 Fourth | and Trustee | Products, Thrivent | Corporation | |
Avenue South | since 2004 | Financial since 2002; | ||
Minneapolis, | Senior Vice President, | |||
MN | Products, American | |||
Age 50 | Express Financial | |||
Advisors from 2000 to | ||||
2001 |
21
INDEPENDENT TRUSTEES(3) | ||||
Position | Number of | |||
Name, Address | with Trust | Portfolios in | Principal Occupation | Other Directorships Held by |
and Age | and Length | Fund Complex | During the Past 5 | Trustee |
of Service(2) | Overseen by | Years | ||
Trustee | ||||
F. Gregory | Trustee since | 61 | President, Carthage | Director, National |
Campbell | 2004 | College | Association of Independent | |
625 Fourth | Colleges and Universities; | |||
Avenue South | Director, Johnson Family | |||
Minneapolis, | Funds, Inc., an investment | |||
MN | company consisting of four | |||
Age 67 | portfolios; Director, | |||
Kenosha Hospital and Medical | ||||
Center Board; Prairie School | ||||
Board; United Health Systems | ||||
Board | ||||
Herbert F. | Lead Trustee | 61 | Management consultant | None |
Eggerding, | since 2004 | to several privately | ||
Jr. | owned companies | |||
625 Fourth | ||||
Avenue South | ||||
Minneapolis, | ||||
MN | ||||
Age 69 | ||||
Noel K. | Trustee since | 61 | Retired; previously | None |
Estenson | 2004 | President and Chief | ||
625 Fourth | Executive Officer, | |||
Avenue South | Cenex Harvest State | |||
Minneapolis, | (farm supply and | |||
MN | marketing and food | |||
Age 68 | business) | |||
Richard L. | Trustee since | 61 | Retired; previously | Director, International |
Gady | 2004 | Vice President, Public | Agricultural Marketing | |
625 Fourth | Affairs and Chief | Association | ||
Avenue South | Economist, ConAgra, | |||
Minneapolis, | Inc. (agribusiness) | |||
MN | ||||
Age 63 | ||||
Richard A. | Trustee since | 61 | President, National | Director, The Washington |
Hauser | 2004 | Legal Center for the | Hospital Center | |
625 Fourth | Public Interest, since | |||
Avenue South | 2004; General Counsel, | |||
Minneapolis, | U.S. Department of | |||
MN | Housing and Urban | |||
Age 63 | Development, 2001 to | |||
2004;Partner, Baker & | ||||
Hosteller, 1986 to | ||||
2001 | ||||
Connie M. | Trustee since | 61 | Retired | None |
Levi | 2004 | |||
625 Fourth | ||||
Avenue South | ||||
Minneapolis, | ||||
MN | ||||
Age 67 | ||||
Douglas D. | Trustee since | 61 | Retired, previously | Director, Keystone |
Sims | 2006 | Chief Executive | Neighborhood Company; | |
22
625 | Fourth | Officer of CoBank from | Director for Corporate |
Avenue South | 1994 to June 30, 2006 | Excellence | |
Minneapolis, | |||
MN | |||
Age | 60 | ||
23
INDEPENDENT TRUSTEES(3) | ||||||
Position | Number of | |||||
Name, Address | with Trust | Portfolios in | Principal Occupation | Other Directorships Held by | ||
and Age | and Length | Fund Complex | During the Past 5 | Trustee | ||
of Service(2) | Overseen by | Years | ||||
Trustee | ||||||
Edward W. | Chairman and | 61 | Retired | Chairman of Carthage College | ||
Smeds | Trustee since | Board | ||||
625 Fourth | 2004 | |||||
Avenue South | ||||||
Minneapolis, | ||||||
MN | ||||||
Age 70 | ||||||
EXECUTIVE OFFICERS | ||||||
Name, Address and Age | Position with Trust and | Principal Occupation During the Past 5 | ||||
Length of Service(2) | Years | |||||
Pamela J. Moret | President since 2004 and Trustee | Executive Vice President, Marketing and | ||||
625 Fourth Avenue South | since 2004 | Products, Thrivent Financial since 2002; | ||||
Minneapolis, MN | Senior Vice President, Products, American | |||||
Age 50 | Express Financial Advisors from 2000 to | |||||
2001 | ||||||
David S. Royal | Secretary and Chief Legal | Vice President – Asset Management, Thrivent | ||||
625 Fourth Avenue South | Officer since 2006 | Financial since 2006; Partner, Kirkland & | ||||
Minneapolis, MN | Ellis LLP from April 2004 to June 2006; | |||||
Age 35 | Associate, Skadden, Arps, Slate, Meagher & | |||||
Flom LLP from 1997 to 2004 | ||||||
Katie S. Kloster | Vice President, Investment | Vice President and IC and IA Chief | ||||
625 Fourth Avenue South | Company and Investment Adviser | Compliance Officer since 2004; previously | ||||
Minneapolis, MN | Chief Compliance Officer since | Vice President and Comptroller of Thrivent | ||||
Age 41 | 2004 | Financial | ||||
Gerard V. Vaillancourt | Treasurer and Principal | Vice President, Mutual Fund Accounting | ||||
625 Fourth Avenue South | Financial Officer since 2005 | since 2006; Head of Mutual Fund Accounting, | ||||
Minneapolis, MN | Thrivent Financial from 2005 to 2006; | |||||
Age 39 | Director, Fund Accounting Administration, | |||||
Thrivent Financial from 2002 to 2005; | ||||||
Manager, Portfolio Compliance, Lutheran | ||||||
Brotherhood from 2001 to 2002; Manager, | ||||||
Fund Accounting, Minnesota Life from 2000 | ||||||
to 2001 | ||||||
Russell W. Swansen | Vice President since 2004 | Senior Vice President and Chief Investment | ||||
625 Fourth Avenue South | Officer, | Thrivent Financial since 2004; | ||||
Minneapolis, MN | Managing Director, Colonade Advisors, LLC, | |||||
Age 49 | from 2001 to 2003; President and Chief | |||||
Investment Officer of PPM America from 1999 | ||||||
to 2000 | ||||||
Janice M. Guimond | Vice President since 2005 | Vice President, Investment Operations, | ||||
625 Fourth Avenue South | Thrivent Financial since 2003; Manager of | |||||
Minneapolis, MN | Portfolio Reporting, Thrivent Financial | |||||
Age 42 | 2003 to 2004; Independent Consultant 2001 | |||||
to 2003; Vice President, Director of | ||||||
Technology, Investment Advisers, Inc. 1999 | ||||||
to 2000; Vice President, Investment Systems | ||||||
& Services, Investment Advisers, Inc. from | ||||||
24
1997 to 1999 | ||
Marnie L. Loomans-Thuecks | Vice President since 2005 | Vice President, Annuity and Settlement |
4321 North Ballard Road | Option Product Services Operations, | |
Appleton, WI | Thrivent Financial | |
Age 43 | ||
Brian W. Picard | Anti-Money Laundering Officer | Director of FSO Compliance and Corp. BCM, |
4321 North Ballard Road | since 2006 | since 2006; Manager of Field and Securities |
Appleton, WI | Compliance from 2002 to 2006, Thrivent | |
Age 36 | Financial | |
Kenneth L. Kirchner | Assistant Vice President since | Director, Interaction Center, Thrivent |
4321 North Ballard Road | 2005 | Financial |
Appleton, WI | ||
Age 40 | ||
James M. Odland | Assistant Secretary since 2006 | Vice President, Office of the General |
625 Fourth Avenue South | Counsel, Thrivent Financial for Lutherans | |
Minneapolis, MN | since 2005; Senior Securities Counsel, | |
Age 50 | Allianz Life Insurance Company from January | |
2005 to August 2005; Vice President and | ||
Chief Legal Officer, Woodbury Financial | ||
Services, Inc., from September 2003 to | ||
January 2005; Vice President and Group | ||
Counsel, Corporate Practice Group, American | ||
Express Financial Advisors, Inc., from 2001 | ||
to 2003 | ||
Marlene J. Nogle | Assistant Secretary since 2004 | Senior Counsel, Thrivent Financial |
625 Fourth Avenue South | ||
Minneapolis, MN | ||
Age 59 | ||
Todd J. Kelly | Assistant Treasurer since 2004 | Director, Fund Accounting Operations, |
4321 North Ballard Road | Thrivent Financial | |
Appleton, WI | ||
Age 37 | ||
(1)"Interested person" of the Trust as defined in the Investment Company Act of 1940 by virtue of positions with Thrivent Financial. Ms. Moret is considered an interested person because of her principal occupation with Thrivent Financial.
(2)Each Trustee serves an indefinite term until her or his successor is duly elected and qualified. Officers serve at the discretion of the board until their successors are duly appointed and qualified.
(3)The Trustees other than Ms. Moret are not "interested persons" of the Trust and are referred to as "Independent Trustees."
25
This report is submitted for the information of shareholders of Thrivent Financial Securities Lending Trust. It is not authorized for distribution to prospective investors unless preceded or accompanied by the current prospectus for Thrivent Financial Securities Lending Trust, which contains more complete information about the Trust, including investment policies, charges and expenses.
26
Item 2. Code of Ethics
As of the end of the period covered by this report, registrant has adopted a code of ethics (as defined in Item 2 of Form N-CSR) applicable to registrant's Principal Executive Officer, Principal Financial Officer, and Principal Accounting Officer. No waivers were granted to such code of ethics during the period covered by this report. A copy of this code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
Registrant's Board of Trustees has determined that Herbert F. Eggerding, Jr., an independent trustee, is the Audit Committee Financial Expert.
Item 4. Principal Accountant Fees and Services
(a) Audit Fees
The aggregate fees billed by registrant's independent public accountants, PricewaterhouseCoopers LLP ("PwC"), for each of the last two fiscal years for professional services rendered in connection with the audit of registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements were $12,000 for the year ended October 31, 2005, and $24,840 for the year ended October 31, 2006.
(b) Audit-Related Fees
The aggregate fees PwC billed to registrant for each of the last two fiscal years for assurance and other services which are reasonably related to the performance of registrant's audit and are not reported under Item 4(a) were $0 for the fiscal year ended October 31, 2005, and $0 for the fiscal year ended October 31, 2006. The aggregate fees PwC billed to registrant's investment adviser and any entity controlling, controlled by, or under common control with registrant's investment adviser for assurance and other services directly related to the operations and financial reporting of registrant were $0 for the year ended October 31, 2005, and $0 for the year ended October 31, 2006.
(c) Tax Fees
The aggregate tax fees PwC billed to registrant for each of the last two fiscal years for tax compliance, tax advice, and tax planning services were $4,200 for the year ended October 31, 2005, and $4,200 for the year ended October 31, 2006. The aggregate tax fees PwC billed to registrant's investment adviser and any entity controlling, controlled by, or under common control with registrant's investment adviser for services directly related to the operations and financial reporting of registrant were $0 for the year ended October 31, 2005, and $0 for the year ended October 31, 2006.
(d) All Other Fees
The aggregate fees PwC billed to registrant for each of the last two fiscal years for products and services provided other than the services reported in paragraphs (a) through (c) of this item were $0 for the year ended October 31, 2005, and $0 for the year ended October 31, 2006. The aggregate fees PwC billed to registrant's investment adviser and any entity controlling, controlled by, or under common
control with registrant's investment adviser for products and services provided other than the services reported in paragraphs (a) through (c) of this item were $44,431 for the year ended October 31, 2005, and $14,145 for the year ended October 31, 2006.
(e) Registrant's audit committee charter, adopted in August 2004, provides that the audit committee (comprised of the independent trustees of registrant) is responsible for pre-approval of all auditing services performed for the registrant. The audit committee reports to the Board of Trustees ("Board") regarding its approval of the engagement of the auditor and the proposed fees for the engagement, and a majority of the Board is required for the approval. The audit committee also is responsible for pre-approval (subject to the de minimus exceptions for non-audit services described in Section 10A(i)(1)(B) of the Securities Exchange Act of 1934, as amended) of all non-auditing services performed for the registrant or for any service affiliate of registrant. Registrant's audit committee charter also permits a designated member of the audit committee to pre-approve, between meetings, one or more non - -audit service projects, subject to ratification by the audit committee at the next meeting of the audit and compliance committee. Registrant's audit committee pre-approved all fees described above which PwC billed to registrant.
(f) Less than 50% of the hours billed by PwC for auditing services to registrant for the fiscal year ended October 31, 2006, were for work performed by persons other than full-time, permanent employees of PwC.
(g) The aggregate non-audit fees billed by PwC to registrant and to registrant's investment adviser and any entity controlling, controlled by, or under common control with registrant's investment adviser for the fiscal years ending October 31, 2005, and October 31, 2006, were $0 and $0, respectively.
(h) Registrant's audit and compliance committee has considered the non-audit services provided to the registrant and registrant's investment adviser and any entity controlling, controlled by, or under common control with registrant's investment adviser as described above and determined that these services do not compromise PwC's independence.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments
Registrant's Schedule of Investments is included in the report to shareholders filed under Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management
Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-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 President and Treasurer have concluded that registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) 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) There has been no change in registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) 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. Exhibits
(a) The code of ethics pursuant to Item 2 is attached hereto.
(b) Certifications pursuant to Rules 30a-2(a) and 30a-2(b) under the Investment Company Act of 1940 are 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: December 29, 2006 | THRIVENT FINANCIAL | |
SECURITIES LENDING | ||
TRUST | ||
By: | /s/ Pamela J. Moret | |
Pamela J. Moret | ||
President | ||
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: December 29, 2006 | By: | /s/ Pamela J. Moret |
Pamela J. Moret | ||
President | ||
Date: December 29, 2006 | By: | /s/ Gerard V. Vaillancourt |
Gerard V. Vaillancourt | ||
Treasurer |