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: 811-23149
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)
Michael W. Kremenak, Secretary and Chief Legal Officer
625 Fourth Avenue South
Minneapolis, Minnesota 55415
(Name and address of agent for service)
Registrant’s telephone number, including area code: (612) 844-4198
Date of fiscal year end: October 31
Date of reporting period: April 28, 2017
| Item 1. | Report to Stockholders |
SEMIANNUAL REPORT
April 28, 2017
THRIVENT CORE SHORT-TERM RESERVE FUND
TABLEOF CONTENTS
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.
The Fund will invest primarily in investment-grade, fixed-income securities. Although the value of the Fund’s shares will fluctuate, Thrivent Asset Management will seek to manage the magnitude of fluctuation by limiting the Fund’s weighted-average-maturity to 180 days or less. Weighted-average-maturity measures the price sensitivity of a fixed-income security to changes in interest rates. Allowable investments will consist primarily of U.S. dollar-denominated debt securities that may include, but are not limited to, obligations of U.S., state, and local governments, their agencies and instrumentalities; mortgage- and asset-backed securities; corporate debt securities; time deposits, repurchase agreements; and other securities that have debt-like characteristics. The Fund may also invest in other investment companies that have exposure to fixed income securities.
| | | | |
Portfolio Composition (% of Portfolio) | |
Short-Term Investments | | | 100.0% | |
| | | | | |
Total | | | 100.0% | |
| | | | |
Major Market Sectors (% of Net Assets) | |
Financials | | | 39.8 | % |
Utilities | | | 10.0 | % |
U.S. Government
and Agencies | | | 7.9 | % |
Asset-Backed Securities | | | 7.9 | % |
Consumer
Non-Cyclical | | | 7.7 | % |
U.S. Municipals | | | 6.0 | % |
Foreign | | | 5.5 | % |
Consumer Cyclical | | | 2.8 | % |
Basic Materials | | | 2.7 | % |
Technology | | | 2.6 | % |
| | | | |
Top 10 Holdings (% of Net Assets) | |
Federal Home Loan Bank | | | 1.4 | % |
Federal Home Loan Bank | | | 1.4 | % |
Federal Home Loan Bank | | | 0.9 | % |
Kroger Company | | | 0.9 | % |
Federal National Mortgage Association | | | 0.8 | % |
International Business Machines | | | | |
Corporation | | | 0.7 | % |
GlaxoSmithKline Capital plc | | | 0.6 | % |
National Rural Utilities Cooperative | | | | |
Finance Corporation | | | 0.6 | % |
Wells Fargo & Company | | | 0.6 | % |
Honda Auto Receivables Owner Trust | | | 0.6 | % |
| |
| These securities represent 8.5% of the total net assets of the Fund. | |
Quoted Portfolio Composition, Major Market Sectors and Top 10 Holdings are subject to change.
2
SHAREHOLDER EXPENSE EXAMPLE
(unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management 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 November 1, 2016 through April 28, 2017.
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
11/1/2016 | | | Ending Account Value
4/28/2017 | | | Expenses Paid During
Period
11/1/2016 -
4/28/2017* | | | Annualized
Expense Ratio | |
Thrivent Core Short-Term Reserve Fund | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 1,005 | | | $ | 0.05 | | | | 0.01 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,025 | | | $ | 0.05 | | | | 0.01 | % |
| * | Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 179/365 to reflect the one-half year period. |
| ** | Assuming 5% annualized total return before expenses. |
3
THRIVENT CORE SHORT-TERM RESERVE FUND
Schedule of Investments as of April 28, 2017
(unaudited)
| | | | | | |
Principal
Amount | | Asset-Backed Securities (7.9%)a | | Value | |
| | Ally Auto Receivables Trust | | | | |
| $11,143,698 | | 0.830%, 2/15/2018,
Ser. 2017-1 | | $ | 11,143,725 | |
| 25,122,078 | | 1.050%, 4/16/2018,
Ser. 2017-2 | | | 25,122,216 | |
| | Ascentium Equipment Receivables Trust | | | | |
| 20,000,000 | | 1.350%, 5/10/2018,
Ser. 2017-1Ab,c | | | 20,000,000 | |
| | BMW Vehicle Lease Trust | | | | |
| 7,895,769 | | 1.000%, 3/20/2018,
Ser. 2017-1 | | | 7,895,814 | |
| | CarMax Auto Owner Trust | | | | |
| 2,315,720 | | 0.750%, 11/15/2017,
Ser. 2016-4 | | | 2,315,721 | |
| 11,774,942 | | 0.850%, 2/15/2018,
Ser. 2017-1 | | | 11,769,356 | |
| 21,500,000 | | 1.100%, 4/16/2018,
Ser. 2017-2 | | | 21,500,142 | |
| | Chrysler Capital Auto Receivables Trust | | | | |
| 4,499,684 | | 0.850%, 11/15/2017,
Ser. 2016-BAb | | | 4,498,978 | |
| | CNH Equipment Trust | | | | |
| 3,428,279 | | 0.750%, 10/10/2017,
Ser. 2016-C | | | 3,428,282 | |
| 15,462,199 | | 1.000%, 4/13/2018,
Ser. 2017-A | | | 15,462,306 | |
| | Dealers Capital Access Trust, LLC | | | | |
| 3,100,000 | | 1.200%, 5/2/2017 | | | 3,099,629 | |
| 4,000,000 | | 1.200%, 5/5/2017 | | | 3,999,142 | |
| | Enterprise Fleet Financing, LLC | | | | |
| 15,919,327 | | 1.050%, 2/20/2018,
Ser. 2017-1b | | | 15,902,405 | |
| | Ford Credit Auto Owner Trust | | | | |
| 3,894,960 | | 0.720%, 11/15/2017,
Ser. 2016-C | | | 3,894,962 | |
| 12,692,794 | | 0.840%, 2/15/2018,
Ser. 2017-A | | | 12,688,013 | |
| | General Motors Financial Leasing Trust | | | | |
| 20,629,944 | | 1.000%, 3/20/2018,
Ser. 2017-1 | | | 20,630,054 | |
| | GM Financial Consumer Automobile | | | | |
| 14,000,000 | | 1.100%, 4/16/2018,
Ser. 2017-1Ab | | | 14,000,080 | |
| | GreatAmerica Leasing Receivables Funding, LLC | | | | |
| 18,393,577 | | 1.000%, 2/20/2018,
Ser. 2017-1b | | | 18,393,696 | |
| | Honda Auto Receivables Owner Trust | | | | |
| 30,798,829 | | 1.050%, 12/21/2017,
Ser. 2017-1 | | | 30,801,657 | |
| | Huntington Auto Trust | | | | |
| 7,492,445 | | 0.850%, 12/15/2017,
Ser. 2016-1 | | | 7,491,511 | |
| | Hyundai Auto Lease Securitization Trust | | | | |
| 5,310,749 | | 0.820%, 1/16/2018,
Ser. 2017-Ab | | | 5,308,730 | |
| | Hyundai Auto Receivables Trust | | | | |
| 20,021,286 | | 1.100%, 4/16/2018,
Ser. 2017-A | | | 20,019,348 | |
| | | | | | |
Principal
Amount | | Asset-Backed Securities (7.9%)a | | Value | |
| | John Deere Owner Trust | | | | |
| $17,231 | | 0.640%, 8/15/2017,
Ser. 2016-B | | $ | 17,230 | |
| 12,138,019 | | 0.880%, 3/15/2018,
Ser. 2017-A | | | 12,137,324 | |
| | Mercedes-Benz Auto Lease Trust | | | | |
| 1,524,379 | | 0.750%, 11/15/2017,
Ser. 2016-B | | | 1,524,380 | |
| 30,000,000 | | 1.150%, 4/16/2018,
Ser. 2017-A | | | 30,000,000 | |
| | MMAF Equipment Finance, LLC | | | | |
| 24,650,000 | | 1.170%, 5/16/2018,
Ser. 2017-AAb,c | | | 24,650,000 | |
| | Nissan Auto Receivables Owner Trust | | | | |
| 25,041,576 | | 1.000%, 4/16/2018,
Ser. 2017-A | | | 25,041,708 | |
| | Securitized Term Auto Receivables Trust | | | | |
| 10,574,252 | | 0.880%, 2/26/2018,
Ser. 2017-1Ab | | | 10,569,436 | |
| | Volvo Financial Equipment, LLC | | | | |
| 22,752,021 | | 0.900%, 3/15/2018,
Ser. 2017-1Ab | | | 22,752,126 | |
| | Wheels SPV 2, LLC | | | | |
| 3,548,386 | | 0.850%, 8/20/2017,
Ser. 2016-1Ab | | | 3,547,879 | |
| | World Omni Auto Receivables Trust | | | | |
| 9,335,950 | | 0.870%, 3/15/2018,
Ser. 2017-A | | | 9,330,656 | |
| 18,000,000 | | 1.100%, 4/16/2018,
Ser. 2017-A | | | 18,000,000 | |
| | | | | | |
| | Total | | | 436,936,506 | |
| | | | | | |
| | |
Principal
Amount | | Basic Materials (2.7%)a | | Value | |
| | Agrium, Inc. | | | | |
| 10,750,000 | | 1.250%, 5/10/2017d | | | 10,745,919 | |
| 25,000,000 | | 1.300%, 5/18/2017d | | | 24,983,819 | |
| 25,000,000 | | 1.220%, 5/23/2017d | | | 24,979,323 | |
| | Ecolab, Inc. | | | | |
| 25,000,000 | | 1.140%, 5/3/2017b | | | 24,996,139 | |
| 25,000,000 | | 1.200%, 5/9/2017b | | | 24,991,330 | |
| 25,000,000 | | 1.170%, 5/17/2017b | | | 24,984,668 | |
| | International Paper Company | | | | |
| 15,000,000 | | 1.150%, 5/1/2017b | | | 14,998,619 | |
| | | | | | |
| | Total | | | 150,679,817 | |
| | | | | | |
| | |
Principal
Amount | | Capital Goods (2.5%)a | | Value | |
| | Boeing Company | | | | |
| 7,080,000 | | 1.297%, 10/30/2017e | | | 7,085,027 | |
| | General Electric Company | | | | |
| 15,118,000 | | 5.625%, 9/15/2017 | | | 15,362,564 | |
| 7,000,000 | | 1.600%, 11/20/2017 | | | 7,013,216 | |
| 21,368,000 | | 5.250%, 12/6/2017 | | | 21,864,678 | |
| | John Deere Capital Corporation | | | | |
| 11,282,000 | | 1.125%, 6/12/2017 | | | 11,281,898 | |
| | United Technologies Corporation | | | | |
| 25,000,000 | | 1.180%, 5/2/2017b | | | 24,996,919 | |
| 25,000,000 | | 1.120%, 5/4/2017b | | | 24,995,350 | |
| 25,000,000 | | 1.150%, 5/8/2017b | | | 24,992,146 | |
| | | | | | |
| | Total | | | 137,591,798 | |
| | | | | | |
|
| The accompanying Notes to Financial Statements are an integral part of this schedule. |
THRIVENT CORE SHORT-TERM RESERVE FUND
Schedule of Investments as of April 28, 2017
(unaudited)
| | | | | | |
Principal
Amount | | Communications Services (2.3%)a | | Value | |
| | CBS Corporation | | | | |
| $10,000,000 | | 1.070%, 5/1/2017b | | $ | 9,999,079 | |
| 10,000,000 | | 1.170%, 5/12/2017b | | | 9,995,543 | |
| 11,000,000 | | 1.150%, 5/19/2017b | | | 10,992,506 | |
| | Comcast Corporation | | | | |
| 25,000,000 | | 1.200%, 5/22/2017b | | | 24,980,250 | |
| 7,000,000 | | 1.220%, 6/9/2017b | | | 6,989,873 | |
| | NBC Universal Enterprise, Inc. | | | | |
| 25,000,000 | | 1.150%, 5/17/2017b,d | | | 24,984,668 | |
| 20,000,000 | | 1.150%, 5/18/2017b,d | | | 19,987,056 | |
| | Walt Disney Company | | | | |
| 20,000,000 | | 0.875%, 5/30/2017 | | | 19,999,640 | |
| | | | | | |
| | Total | | | 127,928,615 | |
| | | | | | |
| | |
Principal
Amount | | Consumer Cyclical (2.8%)a | | Value | |
| | CVS Health Corporation | | | | |
| 25,000,000 | | 1.140%, 5/8/2017b | | | 24,992,146 | |
| 15,000,000 | | 1.140%, 5/9/2017b | | | 14,994,798 | |
| 15,000,000 | | 1.130%, 5/11/2017b | | | 14,993,814 | |
| | Toyota Credit Canada, Inc. | | | | |
| 10,000,000 | | 1.230%, 6/5/2017d | | | 9,990,131 | |
| 25,000,000 | | 1.040%, 6/8/2017d | | | 24,973,122 | |
| 25,000,000 | | 1.090%, 6/21/2017d | | | 24,963,100 | |
| | Toyota Motor Credit Corporation | | | | |
| 15,000,000 | | 1.237%, 5/16/2017e | | | 15,001,785 | |
| | Wal-Mart Stores, Inc. | | | | |
| 25,000,000 | | 5.524%, 6/1/2017 | | | 25,077,600 | |
| | | | | | |
| | Total | | | 154,986,496 | |
| | | | | | |
| | |
Principal
Amount | | Consumer Non-Cyclical (7.7%)a | | Value | |
| | Amgen, Inc. | | | | |
| 5,000,000 | | 2.125%, 5/15/2017 | | | 5,001,200 | |
| 10,000,000 | | 1.250%, 5/22/2017 | | | 9,999,690 | |
| 5,180,000 | | 1.430%, 5/22/2017e | | | 5,181,005 | |
| | Coca-Cola Company | | | | |
| 20,000,000 | | 0.930%, 6/21/2017b | | | 19,974,980 | |
| 6,000,000 | | 0.960%, 7/13/2017b | | | 5,988,815 | |
| 3,500,000 | | 0.950%, 8/8/2017b | | | 3,490,559 | |
| 30,000,000 | | 1.040%, 8/21/2017b | | | 29,905,412 | |
| 5,720,000 | | 0.875%, 10/27/2017 | | | 5,711,700 | |
| | Diageo Capital plc | | | | |
| 9,065,000 | | 1.500%, 5/11/2017 | | | 9,066,305 | |
| | Ecolab, Inc. | | | | |
| 15,840,000 | | 1.080%, 5/1/2017b | | | 15,838,542 | |
| | General Mills, Inc. | | | | |
| 25,000,000 | | 1.125%, 5/2/2017b | | | 24,996,920 | |
| | GlaxoSmithKline, LLC | | | | |
| 20,000,000 | | 1.050%, 7/10/2017b,d | | | 19,961,472 | |
| | Golden Funding Corporation | | | | |
| 15,613,000 | | 1.060%, 5/22/2017b,d | | | 15,602,977 | |
| | Kroger Company | | | | |
| 50,000,000 | | 1.100%, 5/1/2017b | | | 49,995,396 | |
| 15,000,000 | | 1.150%, 5/3/2017b | | | 14,997,683 | |
| | McDonald’s Corporation | | | | |
| 25,000,000 | | 1.160%, 5/4/2017b | | | 24,995,254 | |
| | Medtronic Global Holdings SCA | | | | |
| 8,800,000 | | 1.080%, 5/2/2017b,d | | | 8,798,938 | |
| 20,000,000 | | 1.140%, 5/8/2017b,d | | | 19,993,922 | |
| 20,000,000 | | 1.140%, 5/9/2017b,d | | | 19,993,308 | |
| | | | | | |
Principal
Amount | | Consumer Non-Cyclical (7.7%)a | | Value | |
| | Nestle Finance International, Ltd. | | | | |
| $25,000,000 | | 0.920%, 6/15/2017d | | $ | 24,972,133 | |
| | PepsiAmericas, Inc. | | | | |
| 5,000,000 | | 5.000%, 5/15/2017 | | | 5,007,235 | |
| | PepsiCo, Inc. | | | | |
| 9,000,000 | | 1.125%, 7/17/2017 | | | 9,000,720 | |
| 5,635,000 | | 1.000%, 10/13/2017 | | | 5,632,555 | |
| | Pfizer Inc. | | | | |
| 21,700,000 | | 1.431%, 6/15/2018e | | | 21,779,010 | |
| | Reckitt Benckiser Treasury Services plc | | | | |
| 5,000,000 | | 1.020%, 5/2/2017b,d | | | 4,999,536 | |
| 11,500,000 | | 1.180%, 8/25/2017b,d | | | 11,460,162 | |
| 7,850,000 | | 1.110%, 8/30/2017b,d | | | 7,821,366 | |
| | Roche Holdings, Inc. | | | | |
| 11,870,000 | | 1.242%, 9/29/2017b,e | | | 11,874,404 | |
| | Thermo Fisher Scientific Inc | | | | |
| 10,000,000 | | 1.200%, 5/24/2017b | | | 9,991,355 | |
| | | | | | |
| | Total | | | 422,032,554 | |
| | | | | | |
| | |
Principal
Amount | | Energy (2.5%)a | | Value | |
| | Chevron Corporation | | | | |
| 15,000,000 | | 1.020%, 8/28/2017b | | | 14,953,437 | |
| 3,715,000 | | 1.090%, 8/29/2017b | | | 3,703,348 | |
| | Exxon Mobil Corporation | | | | |
| 21,350,000 | | 0.905%, 6/7/2017 | | | 21,330,358 | |
| 15,000,000 | | 0.910%, 6/21/2017 | | | 14,981,167 | |
| | Phillips 66 | | | | |
| 24,921,000 | | 2.950%, 5/1/2017 | | | 24,921,000 | |
| | Schlumberger Investment SA | | | | |
| 3,720,000 | | 1.250%, 8/1/2017b | | | 3,718,959 | |
| | Shell International Finance BV | | | | |
| 18,335,000 | | 1.354%, 5/10/2017e | | | 18,337,035 | |
| | Total Capital Canada, Ltd. | | | | |
| 5,000,000 | | 1.450%, 1/15/2018 | | | 4,997,955 | |
| | Total Capital International SA | | | | |
| 12,500,000 | | 1.550%, 6/28/2017 | | | 12,505,700 | |
| | TransCanada PipeLines, Ltd. | | | | |
| 16,000,000 | | 1.250%, 5/24/2017b | | | 15,986,168 | |
| | | | | | |
| | Total | | | 135,435,127 | |
| | | | | | |
| | |
Principal
Amount | | Financials (39.8%)a | | Value | |
| | Alaska Housing Finance Corporation | | | | |
| 19,800,000 | | 0.950%, 5/15/2017 | | | 19,791,486 | |
| 14,500,000 | | 0.970%, 5/16/2017 | | | 14,493,910 | |
| | AllianceBernstein, LP | | | | |
| 20,900,000 | | 1.000%, 5/24/2017b | | | 20,886,943 | |
| 10,000,000 | | 1.180%, 6/14/2017b | | | 9,988,276 | |
| | American Express Credit Corporation | | | | |
| 8,460,000 | | 1.370%, 6/5/2017e | | | 8,462,242 | |
| | ANZ New Zealand International, Ltd. | | | | |
| 10,000,000 | | 1.140%, 8/7/2017b,d | | | 9,970,962 | |
| | Australia and New Zealand Banking Group, Ltd. | | | | |
| 5,821,000 | | 1.250%, 6/13/2017 | | | 5,821,920 | |
| | Bank of America NA | | | | |
| 7,000,000 | | 1.458%, 5/8/2017e | | | 7,000,490 | |
| | Bank of Montreal | | | | |
| 15,000,000 | | 1.502%, 6/7/2017e | | | 15,008,715 | |
|
| The accompanying Notes to Financial Statements are an integral part of this schedule. |
THRIVENT CORE SHORT-TERM RESERVE FUND
Schedule of Investments as of April 28, 2017
(unaudited)
| | | | | | |
Principal
Amount | | Financials (39.8%)a | | Value | |
| | Bank of Montreal Chicago | | | | |
| $25,000,000 | | 1.140%, 6/21/2017 | | $ | 25,004,486 | |
| 10,000,000 | | 1.419%, 7/10/2017e | | | 10,011,250 | |
| 14,750,000 | | 1.534%, 8/11/2017e | | | 14,773,217 | |
| | Bank of Nova Scotia | | | | |
| 10,000,000 | | 1.484%, 11/7/2017b,e | | | 10,020,950 | |
| | Bank of Nova Scotia Houston | | | | |
| 15,000,000 | | 1.516%, 6/9/2017e | | | 15,009,330 | |
| | Barclays Bank PLC | | | | |
| 8,000,000 | | 2.250%, 5/10/2017b | | | 8,001,520 | |
| | Berkshire Hathaway Finance Corporation | | | | |
| 6,236,000 | | 1.600%, 5/15/2017 | | | 6,237,440 | |
| | Branch Banking & Trust Company | | | | |
| 17,450,000 | | 1.350%, 10/1/2017 | | | 17,446,475 | |
| | CAFCO, LLC | | | | |
| 15,000,000 | | 1.180%, 8/8/2017b,d | | | 14,956,905 | |
| | Canadian Imperial Bank of Commerce | | | | |
| 10,000,000 | | 1.423%, 5/23/2017e | | | 10,003,300 | |
| 10,000,000 | | 1.554%, 8/31/2017e | | | 10,017,950 | |
| 15,000,000 | | 1.373%, 11/6/2017b,e | | | 15,020,055 | |
| | Capital One Bank USA NA | | | | |
| 4,490,000 | | 1.300%, 6/5/2017 | | | 4,490,269 | |
| | Chariot Funding, LLC | | | | |
| 3,400,000 | | 1.180%, 8/14/2017b | | | 3,387,842 | |
| | Chase Bank USA NA | | | | |
| 10,000,000 | | 1.370%, 10/6/2017e | | | 10,009,350 | |
| 10,000,000 | | 1.450%, 1/5/2018e | | | 10,016,290 | |
| | Ciesco, LLC | | | | |
| 25,000,000 | | 1.090%, 6/20/2017b,d | | | 24,961,575 | |
| 8,000,000 | | 1.200%, 8/1/2017b,d | | | 7,975,469 | |
| | Citibank NA | | | | |
| 19,550,000 | | 1.090%, 7/19/2017 | | | 19,552,121 | |
| | Commonwealth Bank of Australia | | | | |
| 10,000,000 | | 1.530%, 5/17/2017b,e | | | 10,003,160 | |
| 15,000,000 | | 1.504%, 9/1/2017b,e | | | 15,023,340 | |
| 28,000,000 | | 1.400%, 9/8/2017 | | | 28,012,964 | |
| 9,883,000 | | 1.900%, 9/18/2017 | | | 9,901,471 | |
| 10,000,000 | | 1.322%, 11/16/2017b,e | | | 10,015,750 | |
| 10,000,000 | | 1.323%, 3/1/2018b,e | | | 10,013,220 | |
| | Cooperatieve Rabobank UA | | | | |
| 15,000,000 | | 1.359%, 7/10/2017e | | | 15,009,720 | |
| 4,500,000 | | 1.300%, 8/1/2017 | | | 4,501,620 | |
| | Fairway Finance Company, LLC | | | | |
| 20,000,000 | | 1.100%, 7/24/2017b,d | | | 19,944,852 | |
| | Fifth Third Bank | | | | |
| 17,750,000 | | 1.350%, 5/2/2017 | | | 17,750,000 | |
| | GlaxoSmithKline Capital plc | | | | |
| 33,477,000 | | 1.500%, 5/8/2017 | | | 33,478,373 | |
| | Glaxosmithkline Finance plc | | | | |
| 10,000,000 | | 1.250%, 6/7/2017b,d | | | 9,990,144 | |
| 17,000,000 | | 0.980%, 6/26/2017b,d | | | 16,974,424 | |
| | Goldman Sachs Group, Inc. | | | | |
| 28,800,000 | | 1.720%, 5/22/2017e | | | 28,810,800 | |
| 15,230,000 | | 1.725%, 6/4/2017e | | | 15,237,524 | |
| | Gotham Funding Corporation | | | | |
| 10,000,000 | | 1.020%, 5/4/2017b,d | | | 9,998,503 | |
| 10,000,000 | | 1.000%, 5/26/2017b,d | | | 9,992,370 | |
| 15,000,000 | | 1.000%, 5/30/2017b,d | | | 14,986,733 | |
| | HSBC USA, Inc. | | | | |
| 5,000,000 | | 1.456%, 6/23/2017e | | | 5,001,995 | |
| | | | | | |
Principal
Amount | | Financials (39.8%)a | | Value | |
| | ING Funding, LLC | | | | |
| $8,000,000 | | 1.090%, 6/26/2017d | | $ | 7,984,254 | |
| 10,000,000 | | 1.250%, 8/1/2017d | | | 9,967,067 | |
| 10,000,000 | | 1.200%, 8/4/2017d | | | 9,965,945 | |
| | ING US Funding, LLC | | | | |
| 10,000,000 | | 1.150%, 5/9/2017d | | | 9,997,601 | |
| 14,000,000 | | 1.433%, 5/30/2017d,e | | | 14,005,894 | |
| 10,000,000 | | 1.170%, 6/7/2017d | | | 9,988,478 | |
| 10,000,000 | | 1.290%, 7/17/2017d | | | 9,972,644 | |
| | JP Morgan Securities, LLC | | | | |
| 15,000,000 | | 1.000%, 5/30/2017 | | | 14,988,360 | |
| 12,000,000 | | 1.233%, 9/5/2017e | | | 12,004,212 | |
| | JPMorgan Chase Bank NA | | | | |
| 16,250,000 | | 1.521%, 6/14/2017e | | | 16,256,012 | |
| | Jupiter Securitization Company, LLC | | | | |
| 10,000,000 | | 1.090%, 8/8/2017b,d | | | 9,966,623 | |
| | La Fayette Asset Securitization, LLC | | | | |
| 7,000,000 | | 1.060%, 5/8/2017b,d | | | 6,998,234 | |
| | Liberty Street Funding, LLC | | | | |
| 15,000,000 | | 1.090%, 5/31/2017b,d | | | 14,986,291 | |
| 10,000,000 | | 1.090%, 6/1/2017b,d | | | 9,990,565 | |
| 10,000,000 | | 1.130%, 6/14/2017b,d | | | 9,986,553 | |
| | LMA Americas, LLC | | | | |
| 25,000,000 | | 1.160%, 5/15/2017b,d | | | 24,989,021 | |
| | Macquarie Bank, Ltd. | | | | |
| 15,000,000 | | 1.060%, 5/23/2017b | | | 14,990,750 | |
| 25,000,000 | | 1.140%, 6/12/2017b | | | 24,969,688 | |
| 10,000,000 | | 1.170%, 6/15/2017b | | | 9,986,880 | |
| 20,000,000 | | 1.000%, 6/16/2017b | | | 19,973,077 | |
| | Marsh & McLennan Companies, Inc. | | | | |
| 25,000,000 | | 1.200%, 5/15/2017b | | | 24,986,353 | |
| | Massachusetts Educational Financing Auth. | | | | |
| 10,000,000 | | 0.980%, 5/10/2017d | | | 10,000,100 | |
| | MetLife Short Term Funding, LLC | | | | |
| 10,000,000 | | 1.020%, 6/12/2017b,d | | | 9,987,562 | |
| 16,125,000 | | 1.000%, 6/13/2017b,d | | | 16,104,458 | |
| 13,500,000 | | 1.032%, 6/19/2017b,d | | | 13,480,286 | |
| 20,000,000 | | 1.090%, 6/21/2017b,d | | | 19,969,520 | |
| 8,300,000 | | 1.050%, 6/26/2017b,d | | | 8,286,016 | |
| 25,000,000 | | 1.000%, 6/27/2017b,d | | | 24,957,083 | |
| 20,000,000 | | 1.100%, 6/28/2017b,d | | | 19,964,993 | |
| 7,000,000 | | 1.170%, 7/10/2017b,d | | | 6,984,826 | |
| | Mizuho Bank, Ltd. | | | | |
| 13,430,000 | | 1.100%, 5/5/2017 | | | 13,430,589 | |
| 30,000,000 | | 1.060%, 5/18/2017b | | | 29,985,117 | |
| 10,000,000 | | 1.614%, 6/19/2017e | | | 10,008,850 | |
| | National Australia Bank, Ltd. | | | | |
| 6,000,000 | | 2.000%, 6/20/2017b | | | 6,005,712 | |
| 10,000,000 | | 1.317%, 11/16/2017b,e | | | 10,013,150 | |
| 10,000,000 | | 1.404%, 12/6/2017b,e | | | 10,017,360 | |
| | National Rural Utilities Cooperative | | | | |
| | Finance Corporation | | | | |
| 33,250,000 | | 1.284%, 5/12/2017e | | | 33,251,297 | |
| | Nederlandse Waterschapsbank NV | | | | |
| 25,000,000 | | 0.980%, 5/5/2017b | | | 24,996,063 | |
| 15,000,000 | | 0.970%, 5/11/2017b | | | 14,995,575 | |
| 10,000,000 | | 0.990%, 6/27/2017b | | | 9,985,167 | |
| | New York Life Global Funding | | | | |
| 22,064,000 | | 1.650%, 5/15/2017b | | | 22,070,663 | |
| | Nieuw Amsterdam Receivables Corporation | | | | |
| 25,000,000 | | 1.220%, 7/14/2017b,d | | | 24,939,523 | |
| 11,000,000 | | 1.300%, 8/10/2017b,d | | | 10,961,771 | |
|
| The accompanying Notes to Financial Statements are an integral part of this schedule. |
THRIVENT CORE SHORT-TERM RESERVE FUND
Schedule of Investments as of April 28, 2017
(unaudited)
| | | | | | |
| | |
Principal
Amount | | Financials (39.8%)a | | Value | |
| | Nordea Bank Finland plc | | | | |
| $10,000,000 | | 1.452%, 5/26/2017e | | $ | 10,003,880 | |
| 15,000,000 | | 1.502%, 6/7/2017e | | | 15,008,715 | |
| 10,000,000 | | 1.600%, 9/6/2017e | | | 10,018,250 | |
| | Old Line Funding, LLC | | | | |
| 25,000,000 | | 1.040%, 5/18/2017b,d | | | 24,986,875 | |
| 25,000,000 | | 1.080%, 6/5/2017b,d | | | 24,974,074 | |
| 25,000,000 | | 1.151%, 7/25/2017b,d,e | | | 24,999,425 | |
| | Pricoa Global Funding I | | | | |
| 3,845,000 | | 1.350%, 8/18/2017b | | | 3,843,366 | |
| | Pricoa Short Term Funding, LLC | | | | |
| 20,000,000 | | 1.000%, 5/15/2017b | | | 19,991,500 | |
| 20,000,000 | | 1.040%, 6/5/2017b | | | 19,979,332 | |
| 25,000,000 | | 1.000%, 6/13/2017b | | | 24,968,152 | |
| 20,000,000 | | 1.100%, 6/20/2017b | | | 19,970,143 | |
| | Royal Bank of Canada | | | | |
| 12,500,000 | | 1.200%, 9/19/2017 | | | 12,498,500 | |
| | Simon Property Group, LP | | | | |
| 15,000,000 | | 0.910%, 5/1/2017b | | | 14,998,956 | |
| 8,000,000 | | 1.040%, 6/12/2017b | | | 7,991,050 | |
| 28,000,000 | | 1.025%, 6/19/2017b | | | 27,963,317 | |
| 13,000,000 | | 1.020%, 6/22/2017b | | | 12,981,887 | |
| 20,000,000 | | 1.020%, 6/26/2017b | | | 19,969,910 | |
| | Svenska Handelsbanken AB | | | | |
| 25,000,000 | | 0.900%, 5/1/2017b | | | 24,998,119 | |
| 6,800,000 | | 1.000%, 5/22/2017b | | | 6,795,811 | |
| 15,000,000 | | 1.200%, 7/5/2017b | | | 14,972,120 | |
| 10,000,000 | | 1.080%, 7/7/2017b | | | 9,980,750 | |
| 5,000,000 | | 1.205%, 9/1/2017b | | | 4,980,400 | |
| 15,000,000 | | 1.250%, 9/5/2017b | | | 14,938,954 | |
| | Svenska Handelsbanken NY | | | | |
| 25,000,000 | | 1.383%, 8/4/2017e | | | 25,020,675 | |
| 20,000,000 | | 1.386%, 8/7/2017e | | | 20,016,800 | |
| 10,000,000 | | 1.288%, 8/9/2017e | | | 10,008,870 | |
| | Swedbank AB | | | | |
| 6,750,000 | | 1.000%, 6/7/2017 | | | 6,743,077 | |
| 12,000,000 | | 1.000%, 6/13/2017 | | | 11,985,817 | |
| 10,000,000 | | 1.000%, 6/14/2017 | | | 9,987,911 | |
| 15,000,000 | | 1.130%, 7/18/2017 | | | 14,966,722 | |
| 15,000,000 | | 1.150%, 7/24/2017 | | | 14,963,677 | |
| 11,233,000 | | 1.160%, 7/25/2017 | | | 11,205,404 | |
| 10,000,000 | | 1.750%, 3/12/2018b | | | 10,005,090 | |
| | Thunder Bay Funding, LLC | | | | |
| 25,000,000 | | 1.151%, 7/25/2017b,d,e | | | 24,999,425 | |
| 25,000,000 | | 1.180%, 8/24/2017b,d | | | 24,900,438 | |
| | Toronto Dominion Bank of New York | | | | |
| 10,000,000 | | 1.100%, 7/14/2017 | | | 10,001,523 | |
| 15,000,000 | | 1.475%, 1/10/2018e | | | 15,026,430 | |
| | Toronto-Dominion Bank NY | | | | |
| 5,000,000 | | 1.125%, 5/2/2017 | | | 5,000,000 | |
| 15,000,000 | | 1.606%, 7/12/2017e | | | 15,017,370 | |
| 15,000,000 | | 1.534%, 8/10/2017e | | | 15,023,895 | |
| 10,000,000 | | 1.414%, 8/18/2017e | | | 10,009,270 | |
| 10,000,000 | | 1.658%, 10/16/2017e | | | 10,024,540 | |
| 10,000,000 | | 1.558%, 10/17/2017e | | | 10,019,920 | |
| 10,000,000 | | 1.323%, 3/5/2018e | | | 10,006,940 | |
| | Toyota Motor Finance Netherlands BV | | | | |
| 25,000,000 | | 1.132%, 10/27/2017e | | | 24,999,175 | |
| | U.S. Bank NA | | | | |
| 19,560,000 | | 1.375%, 9/11/2017 | | | 19,563,325 | |
| | UnitedHealth Group, Inc. | | | | |
| 15,000,000 | | 1.140%, 5/19/2017b | | | 14,990,305 | |
| | | | | | |
| | |
Principal
Amount | | Financials (39.8%)a | | Value | |
| | Victory Receivables Corporation | | | | |
| $16,230,000 | | 1.020%, 5/9/2017b,d | | $ | 16,224,495 | |
| | Wachovia Corporation | | | | |
| 9,358,000 | | 1.401%, 6/15/2017e | | | 9,361,257 | |
| 3,125,000 | | 5.750%, 6/15/2017 | | | 3,141,003 | |
| | Wells Fargo & Company | | | | |
| 9,000,000 | | 2.100%, 5/8/2017 | | | 9,001,080 | |
| 16,880,000 | | 1.364%, 6/2/2017e | | | 16,883,005 | |
| 32,587,000 | | 1.400%, 9/8/2017 | | | 32,577,648 | |
| 16,956,000 | | 1.500%, 1/16/2018 | | | 16,949,235 | |
| | Wells Fargo Bank NA | | | | |
| 20,000,000 | | 1.464%, 6/1/2017e | | | 20,011,340 | |
| 20,000,000 | | 1.391%, 6/15/2017e | | | 20,008,880 | |
| 10,000,000 | | 1.636%, 9/22/2017e | | | 10,020,950 | |
| | Westpac Banking Corporation | | | | |
| 13,690,000 | | 1.200%, 5/19/2017 | | | 13,690,109 | |
| 3,700,000 | | 2.000%, 8/14/2017 | | | 3,706,719 | |
| 10,000,000 | | 1.523%, 11/2/2017b,e | | | 10,018,720 | |
| 10,000,000 | | 1.302%, 3/2/2018b,e | | | 10,007,640 | |
| 10,000,000 | | 1.223%, 4/13/2018b,e | | | 9,998,250 | |
| | Westpac Banking Corporation NY | | | | |
| 10,000,000 | | 1.581%, 9/28/2017e | | | 10,019,080 | |
| | Westpac Securities New Zealand, Ltd. | | | | |
| 5,000,000 | | 1.260%, 9/21/2017b,d | | | 4,976,153 | |
| | | | | | |
| | Total | | | 2,203,213,533 | |
| | | | | | |
| | |
Principal
Amount | | Foreign (5.5%)a | | Value | |
| | Caisse d’Amortissement de la Dette Sociale | | | | |
| 10,000,000 | | 1.015%, 5/22/2017b | | | 9,993,967 | |
| 25,000,000 | | 1.140%, 7/7/2017b | | | 24,950,854 | |
| 25,000,000 | | 1.242%, 7/17/2017b | | | 24,942,889 | |
| 15,000,000 | | 1.245%, 7/24/2017b | | | 14,962,336 | |
| | Caisse des Depots et Consignations | | | | |
| 19,000,000 | | 1.080%, 6/23/2017b | | | 18,970,592 | |
| 30,000,000 | | 1.100%, 7/5/2017b | | | 29,941,123 | |
| | Erste Abwicklungsanstalt | | | | |
| 5,000,000 | | 1.110%, 5/26/2017b | | | 4,996,745 | |
| 12,000,000 | | 1.010%, 6/2/2017b | | | 11,990,107 | |
| 10,000,000 | | 1.030%, 6/7/2017b | | | 9,990,478 | |
| 15,700,000 | | 1.063%, 6/8/2017b | | | 15,684,658 | |
| 15,000,000 | | 1.070%, 6/26/2017b | | | 14,978,170 | |
| 20,000,000 | | 1.206%, 9/7/2017b,e | | | 20,001,040 | |
| 15,000,000 | | 1.184%, 9/18/2017b,e | | | 14,999,100 | |
| 15,000,000 | | 1.212%, 10/27/2017b,e | | | 15,001,785 | |
| | Kells Funding, LLC | | | | |
| 10,000,000 | | 1.343%, 5/2/2017b,d,e | | | 10,000,480 | |
| 10,000,000 | | 1.333%, 5/5/2017b,d,e | | | 10,000,820 | |
| 25,000,000 | | 1.010%, 5/24/2017b,d | | | 24,982,992 | |
| 20,000,000 | | 1.100%, 6/23/2017b,d | | | 19,968,803 | |
| 10,000,000 | | 1.120%, 7/6/2017b,d | | | 9,980,034 | |
| | | | | | |
| | Total | | | 306,336,973 | |
| | | | | | |
| | |
Principal
Amount | | Technology (2.6%)a | | Value | |
| | Apple, Inc. | | | | |
| 7,950,000 | | 1.050%, 5/5/2017 | | | 7,950,159 | |
| 30,000,000 | | 1.104%, 5/5/2017e | | | 30,000,390 | |
| 10,280,000 | | 0.900%, 5/12/2017 | | | 10,279,928 | |
| | International Business Machines Corporation | | | | |
| 41,100,000 | | 1.502%, 8/18/2017e | | | 41,152,279 | |
| 23,300,000 | | 5.700%, 9/14/2017 | | | 23,686,244 | |
|
| The accompanying Notes to Financial Statements are an integral part of this schedule. |
THRIVENT CORE SHORT-TERM RESERVE FUND
Schedule of Investments as of April 28, 2017
(unaudited)
| | | | | | |
| | |
Principal
Amount | | Technology (2.6%)a | | Value | |
| | Oracle Corporation | | | | |
| $18,847,000 | | 1.350%, 7/7/2017e | | $ | 18,858,497 | |
| 10,000,000 | | 1.200%, 10/15/2017 | | | 9,999,180 | |
| | | | | | |
| | Total | | | 141,926,677 | |
| | | | | | |
| | |
Principal
Amount | | Transportation (1.0%)a | | Value | |
| | Burlington Northern Santa Fe, LLC | | | | |
| 9,000,000 | | 5.650%, 5/1/2017 | | | 9,000,000 | |
| | Canadian National Railway Company | | | | |
| 25,000,000 | | 1.050%, 6/14/2017b,d | | | 24,970,690 | |
| | National Railroad Passenger Corporation | | | | |
| 1,710,000 | | 1.150%, 6/2/2017d | | | 1,708,595 | |
| 25,000,000 | | 1.250%, 6/20/2017d | | | 24,968,237 | |
| | | | | | |
| | Total | | | 60,647,522 | |
| | | | | | |
| | |
Principal
Amount | | U.S. Government and Agencies (7.9%)a | | Value | |
| | Federal Farm Credit Bank | | | | |
| 29,850,000 | | 1.040%, 8/24/2017e | | | 29,862,119 | |
| 14,100,000 | | 1.022%, 8/29/2017e | | | 14,112,126 | |
| 15,000,000 | | 1.034%, 9/15/2017e | | | 15,014,190 | |
| 9,000,000 | | 1.000%, 10/13/2017e | | | 9,008,037 | |
| 5,800,000 | | 1.159%, 3/8/2018e | | | 5,816,814 | |
| | Federal Home Loan Bank | | | | |
| 10,000,000 | | 1.033%, 7/3/2017e | | | 10,004,960 | |
| 50,000,000 | | 1.036%, 9/6/2017e | | | 50,046,600 | |
| 75,000,000 | | 0.959%, 10/30/2017e | | | 75,090,675 | |
| 14,200,000 | | 1.058%, 11/2/2017e | | | 14,219,497 | |
| 10,000,000 | | 1.058%, 11/3/2017e | | | 10,013,790 | |
| 75,000,000 | | 0.942%, 11/17/2017e | | | 75,067,200 | |
| 23,500,000 | | 1.035%, 12/5/2017e | | | 23,542,535 | |
| | Federal Home Loan Mortgage Corporation | | | | |
| 25,000,000 | | 1.072%, 12/21/2017e | | | 25,038,775 | |
| 25,000,000 | | 1.126%, 1/12/2018e | | | 25,050,525 | |
| | Federal National Mortgage Association | | | | |
| 44,060,000 | | 1.128%, 1/11/2018e | | | 44,141,996 | |
| | Overseas Private Investment Corporation | | | | |
| 4,000,000 | | 0.000%, 11/15/2017 | | | 4,011,268 | |
| 8,100,000 | | 0.000%, 11/17/2017 | | | 8,125,693 | |
| | | | | | |
| | Total | | | 438,166,800 | |
| | | | | | |
| | |
Principal
Amount | | U.S. Municipals (6.0%)a | | Value | |
| | City & County of San Francisco, CA | | | | |
| 13,185,000 | | 0.900%, 5/8/2017d | | | 13,184,868 | |
| | City of Philadelphia, PA | | | | |
| 25,000,000 | | 0.950%, 5/15/2017d | | | 24,999,750 | |
| | Hennepin County, MN | | | | |
| 20,000,000 | | 0.950%, 5/5/2017 | | | 20,000,000 | |
| | Los Angeles Department of Airports | | | | |
| 15,000,000 | | 0.950%, 5/16/2017d | | | 14,992,800 | |
| | Shelby County, TN | | | | |
| 10,000,000 | | 0.840%, 5/4/2017 | | | 10,000,000 | |
| 25,000,000 | | 0.960%, 5/15/2017 | | | 24,999,250 | |
| 20,000,000 | | 0.950%, 5/16/2017 | | | 20,000,000 | |
| | State of California | | | | |
| 25,000,000 | | 0.960%, 5/15/2017d | | | 25,000,250 | |
| 10,000,000 | | 1.020%, 6/14/2017d | | | 9,999,700 | |
| | | | | | |
| | |
Principal
Amount | | U.S. Municipals (6.0%)a | | Value | |
| $8,160,000 | | 0.980%, 6/22/2017d | | $ | 8,159,184 | |
| | State of Tennessee | | | | |
| 19,463,000 | | 0.950%, 5/17/2017d | | | 19,462,611 | |
| | State of Wisconsin | | | | |
| 20,000,000 | | 0.960%, 5/4/2017 | | | 19,999,800 | |
| 25,000,000 | | 0.960%, 5/8/2017 | | | 24,999,500 | |
| 25,000,000 | | 0.960%, 5/15/2017 | | | 24,999,250 | |
| 10,000,000 | | 0.960%, 5/16/2017 | | | 9,999,700 | |
| 25,582,000 | | 0.960%, 5/17/2017 | | | 25,581,232 | |
| | York County, SC Pollution | | | | |
| 15,000,000 | | 1.000%, 5/1/2017d | | | 15,000,000 | |
| 21,000,000 | | 1.000%, 5/1/2017d | | | 21,000,000 | |
| | | | | | |
| | Total | | | 332,377,895 | |
| | | | | | |
| | |
Principal
Amount | | Utilities (10.0%)a | | Value | |
| | American Electric Power Company, Inc. | | | | |
| 25,000,000 | | 1.230%, 5/4/2017b | | | 24,995,350 | |
| 18,000,000 | | 1.280%, 5/8/2017b | | | 17,994,345 | |
| 24,000,000 | | 1.241%, 5/10/2017b | | | 23,990,888 | |
| 20,000,000 | | 1.250%, 5/18/2017b | | | 19,987,056 | |
| | Berkshire Hathaway Energy Company | | | | |
| 15,000,000 | | 1.200%, 5/1/2017b | | | 14,998,619 | |
| 25,000,000 | | 1.180%, 5/2/2017b | | | 24,996,920 | |
| 10,000,000 | | 1.130%, 5/19/2017b | | | 9,993,187 | |
| 10,000,000 | | 1.130%, 5/30/2017b | | | 9,989,129 | |
| | CenterPoint Energy, Inc. | | | | |
| 20,000,000 | | 1.100%, 5/1/2017b | | | 19,998,158 | |
| | Duke Energy Corporation | | | | |
| 23,000,000 | | 1.120%, 5/2/2017b | | | 22,997,166 | |
| 15,000,000 | | 1.200%, 5/9/2017b | | | 14,994,798 | |
| 15,000,000 | | 1.180%, 5/12/2017b | | | 14,993,315 | |
| | Edison International | | | | |
| 15,000,000 | | 1.100%, 5/4/2017b | | | 14,997,210 | |
| 14,000,000 | | 1.150%, 5/10/2017b | | | 13,994,685 | |
| | Exelon Corporation | | | | |
| 25,500,000 | | 1.155%, 5/3/2017b | | | 25,496,062 | |
| | Florida Power & Light Company | | | | |
| 14,958,000 | | 1.100%, 5/5/2017 | | | 14,954,830 | |
| 20,000,000 | | 1.270%, 6/14/2017 | | | 19,970,024 | |
| | Georgia Transmission Corporation | | | | |
| 12,501,000 | | 1.000%, 5/19/2017b | | | 12,494,962 | |
| 15,000,000 | | 1.000%, 6/6/2017b | | | 14,986,106 | |
| 10,000,000 | | 1.050%, 6/9/2017b | | | 9,989,967 | |
| | Pacific Gas & Electric Company | | | | |
| 25,000,000 | | 1.100%, 5/5/2017b | | | 24,994,458 | |
| | PPL Electric Utilities Corporation | | | | |
| 10,000,000 | | 1.130%, 5/1/2017b | | | 9,999,079 | |
| 15,000,000 | | 1.180%, 5/3/2017b | | | 14,997,683 | |
| 12,000,000 | | 1.208%, 5/8/2017b | | | 11,996,230 | |
| 10,000,000 | | 1.150%, 5/9/2017b | | | 9,996,532 | |
| 15,000,000 | | 1.200%, 5/10/2017b | | | 14,994,305 | |
| | Southern Company | | | | |
| 16,650,000 | | 1.250%, 5/10/2017b | | | 16,643,678 | |
| 15,000,000 | | 1.230%, 5/25/2017b | | | 14,986,466 | |
| | Xcel Energy, Inc. | | | | |
| 25,000,000 | | 1.130%, 5/1/2017b | | | 24,997,698 | |
| 25,000,000 | | 1.150%, 5/2/2017b | | | 24,996,919 | |
| 15,000,000 | | 1.150%, 5/3/2017b | | | 14,997,683 | |
|
| The accompanying Notes to Financial Statements are an integral part of this schedule. |
THRIVENT CORE SHORT-TERM RESERVE FUND
Schedule of Investments as of April 28, 2017
(unaudited)
| | | | | | |
Principal
Amount | | Utilities (10.0%)a | | Value | |
| $25,000,000 | | 1.200%, 5/10/2017b | | $ | 24,990,508 | |
| | Total | | | 555,404,016 | |
| | | | | | |
| | Total Investments (cost $5,602,590,471) 101.2% | | $ | 5,603,664,329 | |
| | | | | | |
| | Other Assets and Liabilities, Net (1.2)% | | | (67,959,740 | ) |
| | | | | | |
| | Total Net Assets 100.0% | | $ | 5,535,704,589 | |
| | | | | | |
| a | The interest rate shown reflects the yield, coupon rate or the discount rate at the date of purchase. |
| b | Denotes investments that benefit from credit enhancement or liquidity support provided by a third party bank, institution or government. |
| 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 28, 2017, the value of these investments was $2,836,364,502 or 51.2% of total net assets. |
| d | Denotes variable rate securities. Variable rate securities are securities whose yields vary with a designated market index or market rate. The rate shown is as of April 28, 2017. |
| e | Denotes investments purchased on a when-issued or delayed delivery basis. |
Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and depreciation of investments, based on cost for federal income tax purposes, were as follows:
| | | | |
Gross unrealized appreciation | | $ | 1,333,589 | |
Gross unrealized depreciation | | | (259,731 | ) |
| | | | |
Net unrealized appreciation (depreciation) | | $ | 1,073,858 | |
| |
Cost for federal income tax purposes | | $ | 5,602,590,471 | |
|
| The accompanying Notes to Financial Statements are an integral part of this schedule. |
THRIVENT CORE SHORT-TERM RESERVE FUND
Schedule of Investments as of April 28, 2017
Fair Valuation Measurements
The following table is a summary of the inputs used, as of April 28, 2017, in valuing Core 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 | | | 436,936,506 | | | | – | | | | 436,936,506 | | | | – | |
Basic Materials | | | 150,679,817 | | | | – | | | | 150,679,817 | | | | – | |
Capital Goods | | | 137,591,798 | | | | – | | | | 137,591,798 | | | | – | |
Communications Services | | | 127,928,615 | | | | – | | | | 127,928,615 | | | | – | |
Consumer Cyclical | | | 154,986,496 | | | | – | | | | 154,986,496 | | | | – | |
Consumer Non-Cyclical | | | 422,032,554 | | | | – | | | | 422,032,554 | | | | – | |
Energy | | | 135,435,127 | | | | – | | | | 135,435,127 | | | | – | |
Financials | | | 2,203,213,533 | | | | – | | | | 2,203,213,533 | | | | – | |
Foreign | | | 306,336,973 | | | | – | | | | 306,336,973 | | | | – | |
Technology | | | 141,926,677 | | | | – | | | | 141,926,677 | | | | – | |
Transportation | | | 60,647,522 | | | | – | | | | 60,647,522 | | | | – | |
U.S. Government and Agencies | | | 438,166,800 | | | | – | | | | 438,166,800 | | | | – | |
U.S. Municipals | | | 332,377,895 | | | | – | | | | 332,377,895 | | | | – | |
Utilities | | | 555,404,016 | | | | – | | | | 555,404,016 | | | | – | |
| | | | | | | | | | | | | | | | |
Total | | $ | 5,603,664,329 | | | $ | – | | | $ | 5,603,664,329 | | | $ | – | |
| | | | | | | | | | | | | | | | |
There were no significant transfers between Levels during the period ended April 28, 2017. 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.
10
THRIVENT CORE SHORT-TERM RESERVE FUND
Statement of Assets and Liabilities
| | | | |
As of April 28, 2017 (unaudited) | | Core Short-Term
Reserve Fund | |
| |
Assets | | | | |
Investments at cost | | $ | 5,602,590,471 | |
Investments in securities at value | | | 5,603,664,329 | |
Investments at Value | | | 5,603,664,329 | |
Cash | | | 37,158 | |
Dividends and interest receivable | | | 7,108,153 | |
Prepaid expenses | | | 24,591 | |
Prepaid trustee fees | | | 1,099 | |
Total Assets | | | 5,610,835,330 | |
| |
Liabilities | | | | |
Distributions payable | | | 4,738,123 | |
Accrued expenses | | | 52,896 | |
Payable for: | | | | |
Investments purchased | | | 25,678,841 | |
Investments purchased on a delayed delivery basis | | | 44,650,000 | |
Administrative fees | | | 6,998 | |
Transfer agent fees | | | 2,333 | |
Trustee deferred compensation | | | 1,550 | |
Commitments and contingent liabilities^ | | | – | |
Total Liabilities | | | 75,130,741 | |
| |
Net Assets | | | | |
Capital stock (beneficial interest) | | | 5,534,991,197 | |
Accumulated undistributed net investment income/(loss) | | | (339,089 | ) |
Accumulated undistributed net realized gain/(loss) | | | (21,377 | ) |
Net unrealized appreciation/(depreciation) on: | | | | |
Investments | | | 1,073,858 | |
Total Net Assets | | $ | 5,535,704,589 | |
Shares of beneficial interest outstanding | | | 553,499,353 | |
Net asset value per share | | $ | 10.00 | |
| ^ | Commitments and contingent liability 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.
11
THRIVENT CORE SHORT-TERM RESERVE FUND
Statement of Operations
| | | | |
For the six months ended April 28, 2017 (unaudited) | | Core Short-Term
Reserve Fund | |
Investment Income | | | | |
Interest | | | 24,433,600 | |
Total Investment Income | | | 24,433,600 | |
| |
Expenses | | | | |
Administrative service fees | | | 44,498 | |
Amortization of offering costs | | | 15,654 | |
Audit and legal fees | | | 19,671 | |
Custody fees | | | 73,197 | |
Insurance expenses | | | 11,242 | |
Printing and postage expenses | | | 5,374 | |
Transfer agent fees | | | 14,833 | |
Trustees’ fees | | | 3,899 | |
Other expenses | | | 39,164 | |
Total Net Expenses | | | 227,532 | |
| |
Net Investment Income/(Loss) | | | 24,206,068 | |
Realized and Unrealized Gains/(Losses) | | | | |
Net realized gains/(losses) on: | | | | |
Investments | | | (4,162 | ) |
Change in net unrealized appreciation/(depreciation) on: | | | | |
Investments | | | (692,309 | ) |
Net Realized and Unrealized Gains/(Losses) | | | (696,471 | ) |
| |
Net Increase/(Decrease) in Net Assets Resulting From Operations | | $ | 23,509,597 | |
The accompanying Notes to Financial Statements are an integral part of this statement.
12
THRIVENT CORE SHORT-TERM RESERVE FUND
Statement of Changes in Net Assets
| | | | | | | | |
| | | Core Short-Term Reserve Fund | |
For the periods ended | | 4/28/2017
(unaudited) | | | 10/31/2016(a) | |
Operations | | | | | | | | |
Net investment income/(loss) | | $ | 24,206,068 | | | $ | 12,447,918 | |
Net realized gains/(losses) | | | (4,162 | ) | | | (17,215 | ) |
Change in net unrealized appreciation/(depreciation) | | | (692,309 | ) | | | 1,766,167 | |
Net Change in Net Assets Resulting From Operations | | | 23,509,597 | | | | 14,196,870 | |
Distributions to Shareholders | | | | | | | | |
From net investment income | | | (24,547,488 | ) | | | (12,447,918 | ) |
Total Distributions to Shareholders | | | (24,547,488 | ) | | | (12,447,918 | ) |
| | |
Capital Stock Transactions | | | | | | | | |
Sold | | | 5,925,888,218 | | | | 8,320,836,904 | |
Redeemed | | | (5,151,637,697 | ) | | | (3,560,093,897 | ) |
Total Capital Stock Transactions | | | 774,250,521 | | | | 4,760,743,007 | |
| | |
Net Increase/(Decrease) in Net Assets | | | 773,212,630 | | | | 4,762,491,959 | |
Net Assets, Beginning of Period | | | 4,762,491,959 | | | | – | |
Net Assets, End of Period | | $ | 5,535,704,589 | | | $ | 4,762,491,959 | |
Accumulated Undistributed Net Investment Income/(Loss) | | $ | (339,089 | ) | | $ | 2,331 | |
| | |
Capital Stock Share Transactions | | | | | | | | |
Sold | | | 592,588,822 | | | | 832,083,691 | |
Redeemed | | | (515,163,770 | ) | | | (356,009,390 | ) |
| | | | | | | | |
Total Capital Stock Share Transactions | | | 77,425,052 | | | | 476,074,301 | |
| | | | | | | | |
| (a) | For the period from May 2, 2016 (inception) through April 28, 2017. |
The accompanying Notes to Financial Statements are an integral part of this statement.
13
THRIVENT CORE SHORT-TERM RESERVE FUND
NOTESTO FINANCIAL STATEMENTS
April 28, 2017
(unaudited)
1) ORGANIZATION
Thrivent Core Funds (the “Trust”) was organized as a Delaware statutory trust on March 18, 2016, and is registered as an open-end management investment company under the Investment Company Act of 1940. The Trust commenced operations on May 2, 2016. The Trust is authorized to issue shares of beneficial interest, no par value, divisible into an indefinite number of different series and classes and operates as a “series company” as provided by Rule 18f-2 under the 1940 Act. The Trust currently consists of one series, Thrivent Core Short-Term Reserve Fund (the “Fund”), which is diversified. The Fund was established primarily to serve as a cash sweep vehicle for the series of Thrivent Mutual Funds and Thrivent Series Fund, Inc.
The Fund is 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
(A) Valuation of Investments – Securities traded on U.S. or foreign securities exchanges or included in a national market system are valued at the official closing price at the close of each business day unless otherwise stated below. 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 Fund’s 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 Fund valuation policies in accordance with Valuation Policies and Procedures. The Committee meets on a monthly and on an as-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 Fund. 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 Fund’s 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 publicly available-for-sale are not categorized within the fair value hierarchy.
(B) Federal Income Taxes – The Fund 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 Fund, accordingly, anticipates paying no Federal income taxes and no Federal income tax provision was recorded.
GAAP requires management of the Fund 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
14
THRIVENT CORE SHORT-TERM RESERVE FUND
NOTESTO FINANCIAL STATEMENTS
April 28, 2017
(unaudited)
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 the more-likely-than-not recognition threshold, management of the Fund must presume that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information.
Management of the Fund 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 Fund include U.S. Federal, Minnesota, Wisconsin, and Massachusetts as well as certain foreign countries. As of April 28, 2017, open U.S. Federal, Minnesota, Wisconsin and Massachusetts tax years include the tax year ending October 31, 2016. The Fund has no examinations in progress and none are expected at this time.
As of April 28, 2017, management of the Fund has reviewed all open tax years and major jurisdictions and concluded that there is no effect to the 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 Fund is also 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.
(C) Expenses and Income – Estimated expenses are accrued daily. Interest income is accrued daily and is determined on the basis of interest or discount earned on all debt securities, including 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.
(D) Distributions to Shareholders – Net investment income is distributed to each shareholder as a dividend. Dividends from the 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.
(E) When-Issued and Delayed Delivery Transactions – The Fund may purchase or sell securities on a when-issued or delayed delivery basis. These transactions involve a commitment by the Fund 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 Fund will designate liquid assets in an amount sufficient to meet the purchase price. When purchasing a security on a delayed delivery basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value. The 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 the Fund has sold a security on a delayed delivery basis, the Fund does not participate in future gains and losses with respect to the security.
(F) Repurchase Agreements – The 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 Fund uses 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, the 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 Fund 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 28, 2017, the Fund did not engage in this type of investment.
(G) Credit Risk – The Fund may be susceptible to credit risk to the extent an issuer or counterparty defaults on its payment obligation. The Fund’s policy is to monitor the creditworthiness of issuers and counterparties. Interest receivable on defaulted securities is monitored for ability to collect payments in default and is adjusted accordingly.
(H) 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.
(I) Amortization of Offering Costs – The offering costs referenced in the Statement of Operations for Core Short-Term Reserve 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.
(J) Recent Accounting Pronouncements —
Investment Company Reporting Modernization.
In October 2016, the Securities and Exchange Commission (SEC) adopted new rules and forms to modernize the reporting
15
THRIVENT CORE SHORT-TERM RESERVE FUND
NOTESTO FINANCIAL STATEMENTS
April 28, 2017
(unaudited)
and disclosure of information by registered investment companies. The SEC also adopted amendments to Regulations S-X, which describe the specific format and content of financial reports, to require standardized and enhanced disclosures and derivatives in investment company financial statements and other amendments. These amendments are effective August 1, 2017. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statements and footnote disclosures.
(K) 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.
(3) FEES AND COMPENSATION PAID TO AFFILIATES
(A) 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 Thrivent Asset Mgt. These fees are accrued daily and paid monthly. For the six months ended April 28, 2017, the Adviser received aggregate fees for administrative and accounting personnel and services of $45,000 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. 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.
Those Trustees not participating in the above plan received $3,806 in fees from the Trust for the six months ended April 28, 2017. In addition, the Trust reimbursed unaffiliated Trustees for reasonable expenses incurred in relation to attendance at the meetings and industry conferences.
Certain officers and non-independent Trustees of the Trust are employed at Thrivent Financial for Lutherans and receive no compensation from the Trust. Affiliated employees and board consultants are reimbursed for reasonable expenses incurred in relation to board meeting attendance.
(B) Indirect Expenses – The Fund may invest in other mutual funds. Fees and expenses of those underlying funds are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of the annualized weighted average expense ratio for the underlying funds in which it invests.
(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 federal tax-basis treatment; temporary differences do not require reclassifications. At fiscal year-end, the character and amount of distributions, on a tax basis and components of distributable earnings, are finalized. Therefore, as of April 28, 2017, the tax-basis balance has not yet been determined.
At October 31, 2016, Core Short-Term Reserve Fund had accumulated net realized capital loss carryovers expiring as follows:
| | | | | | | | |
| | | Capital Loss | | | | |
Fund | | Carryover | | | Expiration Year | |
Core Short-Term | | | | | | | | |
Reserve | | $ | 17,215 | | | | Unlimited | |
To the extent that Core Short-Term Reserve Fund realizes future net capital gains, taxable distributions will be reduced by any unused capital loss carryovers as permitted by the Internal Revenue Code. Capital loss carryovers will be subject to the provisions of the Regulated Investment Company Modernization Act of 2010. If the losses are not reduced by gains during the next fiscal year, the losses will be carried forward with no expiration and with the short-term or long-term character of the loss retained.
(5) SECURITY TRANSACTIONS
(A) Purchases and Sales of Investment Securities – For the six months ended April 28, 2017, 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 | |
Core Short-Term Reserve Fund | | $ | 570,186 | | | $ | 720,012 | |
Purchases and sales of U.S. Government securities were:
| | | | | | | | |
| | | In thousands | |
Fund | | Purchases | | | Sales | |
Fund | | | Purchases | | | | Sales | |
Core Short-Term Reserve Fund | | $ | – | | | $ | 54,170 | |
(6) RELATED PARTY TRANSACTIONS
As of April 28, 2017, related parties held 100% of the outstanding shares of the Fund.
(7) SUBSEQUENT EVENTS
Management of the Fund has evaluated the impact of subsequent events through June 20, 2017, and, except as already included in the Notes to Financial Statements, has determined that no additional items require disclosure.
16
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17
THRIVENT CORE SHORT-TERM RESERVE FUND
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 | |
CORE SHORT-TERM RESERVE FUND | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended 4/28/2017 (unaudited) | | $ | 10.00 | | | $ | 0.05 | | | $ | 0.00 | | | $ | 0.05 | | | $ | (0.05 | ) | | $ | – | |
Year Ended 10/31/2016 (c) | | | 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. |
| (c) | 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.
18
THRIVENT CORE SHORT-TERM RESERVE FUND
FINANCIAL HIGHLIGHTS –CONTINUED
RATIOS/SUPPLEMENTAL DATA
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Ratio to Average Net Assets** | | | Ratio to Average Net Assets
Before Expenses Waived,
Credited or Paid Indirectly** | | | | |
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 | |
| $ | (0.05) | | | $ | 10.00 | | | | 0.48 | % | | $ | 5,535.7 | | | | 0.01 | % | | | 0.96 | % | | | 0.01 | % | | | 0.96 | % | | | 62 | % |
| | (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.
19
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 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 at 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 1-800-SEC-0330.
BOARD APPROVAL OF ADVISORY AGREEMENT
The Investment Company Act of 1940 (the “Investment Company Act”) requires that the Advisory Agreement for the Thrivent Core Short-Term Reserve Fund (the “Fund”), a series of the Thrivent Core Funds (the “Trust”), be approved by the Board of Trustees (the “Board”), including a majority of the Trustees who are not “interested persons” of the Trust, as defined in the Investment Company Act (the “Independent Trustees”). The ten-member Board includes eight Independent Trustees, including the Chairman.
At its meeting on November 17-18, 2015, the Board voted unanimously to approve the Advisory Agreement between the Trust and Thrivent Asset Management, LLC (the “Adviser”) with respect to the Fund. 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 objective of the Fund, as well as the following:
| | 1. | The nature, extent, and quality of the services to be provided by the Adviser; |
| | 2. | The Adviser’s performance history and how that might translate to the performance of the Fund; |
| | 3. | The fees and other expenses charged to the Fund; |
| | 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 Fund; and |
| | 6. | Any other factors that the Board deemed relevant to its consideration. |
In connection with the formation of the Trust and the Fund, and the approval of the Advisory Agreement, the Investment Committee of the Board (consisting of all of the Independent Trustees) met on August 25, 2015 and November 17, 2015 to consider information relevant to the Trustees’ consideration.
The Independent Trustees were represented by independent counsel throughout the process and during executive sessions without management present to consider whether to approve the Advisory Agreement. The Independent Trustees relied on their own business judgment in determining the weight to be given to each factor considered in evaluating the materials that were presented to them. The Investment 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. The key factors considered and the conclusions reached are described below.
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ADDITIONAL INFORMATION
(Unaudited)
Nature, Extent and Quality of Services
At the meetings, management presented information describing the services to be furnished to the Fund by the Adviser, the transfer agent and the administrator. During these meetings, management reported on the personnel that would provide services to the Fund, including the proposed portfolio manager. The Board also considered information relating to the investment experience and qualifications of the Adviser’s portfolio manager that would oversee investments for the Fund.
The Board received information at the meetings from the Head of Fixed Income Funds about other Thrivent funds with similar investment objectives to the Fund that were managed by the proposed portfolio manager for the Fund. These presentations gave the Board the opportunity to evaluate the portfolio manager’s abilities and the quality of services he would provide to the Fund. The Independent Trustees also received quarterly reports regarding other Thrivent funds from the Chief Compliance Officer that served to inform the Board about the types of compliance services and programs that would be applied to the Fund.
The Board considered the adequacy of the Adviser’s resources to be used in providing services to the Fund. The Adviser reviewed its process for overseeing its portfolio management teams for all Thrivent funds. In addition, the Adviser noted that its investments in technology and personnel have benefitted other Thrivent funds and discussed continued investments in these resources, which would benefit the Fund. The Adviser reviewed the non-advisory services to be provided to the Fund by the Adviser and its affiliates. The Board viewed these actions as a positive factor in approving the Advisory Agreement as they demonstrated the Adviser’s commitment to provide the Fund with quality service.
The Board concluded that, within the context of its full deliberations, the nature, extent and quality of the investment advisory services to be provided to the Fund by the Adviser supported approval of the Advisory Agreement.
Investment Performance
Because the Fund had not yet commenced operation, the Board could not consider the performance of the Fund. The Board did consider that the proposed portfolio manager for the Fund also manages Thrivent’s money market funds, which, prior to changes to address money market regulatory reforms adopted by the Securities and Exchange Commission, were managed with similar investment objectives as the Fund. The Board received information about the Thrivent money market funds in connection with the renewal of the advisory agreements for other Thrivent fixed income funds. The Board also considered the proposed performance benchmarks for the Fund. The Board noted that the Fund is designed primarily to offer a sweep option for other investment companies managed by the Adviser or its affiliates and ultimately enhance the performance of those investment companies.
Fees and Fund Expenses
The Board noted that the Adviser will not charge an investment advisory fee to the Fund. The Adviser discussed the fees and expenses that the Fund would incur. The Board considered the fees and expenses to be charged to the Fund and determined that they were reasonable.
Cost of Services, Profitability and Economies of Scale
The Board noted that the Adviser will not charge an investment advisory fee to the Fund and thus concluded that the Adviser’s profitability would not be excessive. The Board did not consider economies of scale because the Fund did not yet have any assets and determined that it would not be a material factor of consideration given that the Adviser is not charging an advisory fee.
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 Fund, 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 Trust. The Board noted that such benefits were difficult to quantify but were consistent with benefits received by other mutual fund advisers.
21
ADDITIONAL INFORMATION
(Unaudited)
Based on the factors discussed above, the Investment Committee unanimously recommended approval of the Advisory Agreement, and the Board, including all of the Independent Trustees voting separately, approved the Advisory Agreement.
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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.
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
| | (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 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 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 President and Treasurer are aware of no change in registrant’s internal control over financial reporting (as defined in Rule 30a-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.
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: June 27, 2017 | | | | THRIVENT CORE FUNDS |
| | | |
| | | | By: | | /s/ David S. Royal |
| | | | | | David S. Royal |
| | | | | | 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: June 27, 2017 | | | | By: | | /s/ David S. Royal |
| | | | | | David S. Royal |
| | | | | | President |
| | | |
| Date: June 27, 2017 | | | | By: | | /s/ Gerard V. Vaillancourt |
| | | | | | Gerard V. Vaillancourt |
| | | | | | Treasurer |
