Thrivent Church Loan & Income Fund (XCLIX) N-CSR Certified annual shareholder report (management investment company)

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: 811-23362

Thrivent Church Loan and Income Fund

(Exact name of registrant as specified in charter)

901 Marquette Avenue, Suite 2500

Minneapolis, Minnesota 55402-3265

(Address of principal executive offices) (Zip code)

John D. Jackson

Assistant Secretary

Thrivent Church Loan and Income Fund

901 Marquette Avenue, Suite 2500

Minneapolis, Minnesota 55402-3265

 (Name and address of agent for service)

Registrant’s telephone number, including area code: (612) 844-7190

Date of fiscal year end: March 31

Date of reporting period: March 31, 2020

Item 1. Report to Stockholders

[

Insert shareholder report]

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 George W. Morriss and Jerry T. Golden, independent trustees, are the Audit Committee Financial Experts.

Item 4. Principal Accountant Fees and Services

(a)  Audit Fees

The aggregate fees billed by registrant’s independent public accountants, Cohen & Company, Ltd. (“Cohen”), 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 $55,000 for the year ended March 31, 2019 and $75,000 for the year ended March 31, 2020. 

(b)

Audit-Related Fees

The aggregate fees Cohen billed to registrant for each of the last two fiscal years for assurance and other services that are reasonably related to the performance of registrant’s audit and are not reported under Item 4(a) were $0 for the year ended March 31, 2019 and $0 for the year ended March 31, 2020.  The aggregate fees Cohen 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 March 31, 2019 and $0 for the year ended March 31, 2020. 

(c)

Tax Fees

The aggregate tax fees Cohen billed to registrant for each of the last two fiscal years for tax compliance, tax advice and tax planning services were $4,500 for the year ended March 31, 2019 and $6,000 for the year ended March 31, 2020.  These fees include payments for tax return compliance services, excise distribution review services and other tax related matters.  The aggregate tax fees Cohen 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 March 31, 2019 and $0 for the year ended March 31, 2020.

(d)

All Other Fees

The aggregate fees Cohen 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 years ended March 31, 2019 and March 31, 2020.  The aggregate fees Cohen 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 $0 for the year ended March 31, 2019 and $0 for the year ended March 31, 2020.  These figures are also reported in response to item 4(g) below.

(e)

Registrant’s audit committee charter 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 also is responsible for pre-approval (subject to the de minimis exceptions for non-audit services described in Section 10A(i)(1)(B) of the Securities Exchange Act of 1934) of all non-auditing services performed for the registrant or an affiliate of registrant. In addition, registrant’s audit committee charter permits a designated member of the audit committee to pre-approve, between meetings, one or more audit or non-audit service projects, subject to an expense limit and notification to the audit committee at the next committee meeting. Registrant’s audit committee pre-approved all fees described above that Cohen billed to registrant.

(f)  Less than 50% of the hours billed by Cohen for auditing services to registrant for the fiscal year ended March 31, 2020 were for work performed by persons other than full-time permanent employees of Cohen.

(g)  The aggregate non-audit fees billed by Cohen 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 March 31, 2019 and March 31, 2020 were $0 and $0 respectively.  These figures are also reported in response to item 4(d) above.

(h)  Registrant’s audit 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 Cohen’s independence.

Item 5. Audit Committee of Listed Registrants

            Not applicable.

Item 6. Investments

(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

Thrivent Asset Management, LLC (“Thrivent Asset Mgt.”) is the registrant’s investment adviser. A copy of Thrivent Asset Mgt.’s Proxy Voting Policies and Procedures Summary is attached to this filing as an exhibit and incorporated herein by reference.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

(a)(1)   The following information about the portfolio managers of the registrant who are primarily responsible for the day-to-day management of the registrant’s portfolio (“Portfolio Manager”) is provided as of May 29, 2020.

Frederick P. Johnson has served as Portfolio Manager of the Church Loan and Income Fund since 2018. Mr. Johnson also serves as  Senior Portfolio Manager of Thrivent Financial’s church loan portfolio and has served as the Director of the Thrivent Church Financing department since 2004. Mr. Johnson has been an employee of Thrivent Financial for 33 years, holding leadership roles in the mutual fund transfer agent/broker dealer from 1987 to 1994 and serving as Vice President of Investment Operations from 1995 to 2004.

Meg G. Spangler has served as the Associate Portfolio Manager of the Church Loan and Income Fund since 2018. Ms. Spangler  has also served as Associate Portfolio Manager for Thrivent Financial’s church loan portfolio  since 2004. She also recently served as Director of Thrivent’s Commercial Loan Servicing department, managing the ongoing servicing needs of over 2,500 loans. Ms. Spangler has actively worked with all aspects of church and commercial lending including underwriting,  loan closing,  and servicing.

Gregory R. Anderson  has served as Portfolio Manager of the Church Loan and Income Fund since 2018.  Mr. Anderson is the Vice President of Fixed Income Securities for Thrivent Financial and recently served as  Senior Portfolio Manager of Thrivent Financial’s mortgage-backed securities (MBS) portfolio. He is also co-portfolio manager of certain Thrivent fixed income mutual funds. Mr. Anderson joined Thrivent Financial in 1997 and has held a variety of positions, including corporate bond investment analyst and securitized assets portfolio manager.

(a)(2)   The following table provides information relating to other accounts managed by the Portfolio Managers as of March 31, 2020. None of the Portfolio Managers of the registrant manage assets in pooled investment vehicles other than the registered investment companies noted below.

	Other Registered Investment Companies		Other Accounts
Portfolio Manager	# of Accounts Managed	Assets Managed	# of Accounts Managed	Assets Managed
Frederick P. Johnson	0	$0	1	$1,196,970,569
Meg G. Spangler	0	$0	1	$922,154,640
Gregory R. Anderson	10	$4,899,288,958	3	$7,680,524,390

Portfolio managers at the investment adviser (“Thrivent Asset Mgt.”) of the registrant typically manage multiple accounts. These accounts may include, among others, mutual funds, proprietary accounts and separate accounts (assets managed on behalf of pension funds, foundations and other investment accounts). The management of multiple funds and accounts may give rise to potential conflicts of interest if the funds and accounts have different objectives, benchmarks, time horizons, and fees.

In addition, the side-by-side management of these funds and accounts may raise potential conflicts of interest relating to cross trading, the allocation of investment opportunities and the aggregation and allocation of trades. Thrivent Asset Mgt. seeks to provide best execution of all securities transactions and aggregate and then allocate securities to client accounts in a fair and timely manner. To this end, Thrivent Asset Mgt. has developed policies and procedures designed to mitigate and manage the potential conflicts of interest that may arise from side-by-side management. The information regarding potential conflicts of interest was provided by Thrivent Asset Mgt. and is current as of May 29, 2020.

(a)(3)   The following is a description provided by Thrivent Asset Mgt. regarding the structure of and criteria for determining the compensation of the Portfolio Managers as of March 31, 2020.

Each Portfolio Manager of Thrivent Asset Mgt. is compensated by an annual base salary and an annual bonus, in addition to the various benefits that are available to all employees of Thrivent Financial. The annual base salary for each portfolio manager is a fixed amount that is determined annually according to the level of responsibility and performance. The annual bonus provides for a variable payment that is attributable to loan origination volume and yield targets as well as loan quality measures (e.g., delinquency, loan losses). Some Portfolio Managers also participate in Thrivent Financial’s long-term incentive plan, which provides for an additional variable payment based on the extent to which Thrivent Financial met corporate goals during the previous three-year period.

(a)(4)   The following table provides information as of March 31, 2020 on the dollar range of beneficial ownership by each Portfolio Manager in the registrant.

Portfolio Manager	Dollar Range of Beneficial Ownership in the Registrant
Frederick P. Johnson	$10,001-$50,000
Meg G. Spangler	None
Gregory R. Anderson	None

(b)  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, where those changes were implemented after the registrant last provided disclosure in response to this Item.

Item 11. Controls and Procedures

(a) Registrant’s principal executive and principal financial officers, or persons performing similar functions, 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.

(b) There were no changes 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 the period covered by this report that has materially affected, or is reasonably likely to materially affect, registrant’s internal control over financial reporting. 

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies

             Not applicable.

Item 13. Exhibits

(

a)(1)  

Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: See EX-99.CODE attached hereto.

(a)(2)  

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See EX-99.CERT attached hereto.

(a)(3)   Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable.

(a)(4)   Change in the registrant’s independent public accountant: Not applicable

(b)

If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference: See EX-99.906CERT 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: May 29, 2020                                                      THRIVENT CHURCH LOAN AND INCOME

                                                                                    FUND

                                                                                       By:   /s/ David S. Royal                       

                                                                                                David S. Royal

                                                                                            Trustee and 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: May 29, 2020                                                      By:   /s/ David S. Royal                       

                                                                                                David S. Royal

                                                                                            Trustee and President

                                                                                            (principal executive officer)

Date: May 29, 2020                                                      By:   /s/ Gerard V. Vaillancourt            

                                                                                                Gerard V. Vaillancourt

                                                         ��                                  Treasurer and Principal Accounting Officer

                                                                                            (principal financial officer)

MARCH

31,

2020

THRIVENT

CHURCH

LOAN

AND

INCOME

FUND

ANNUAL

REPORT

Beginning

on

January

1,

2021,

as

permitted

by

regulations

adopted

by

the

U.S.

Securities

and

Exchange

Commission,

paper

copies

of

the

Funds’

annual

and

semiannual

shareholder

reports

will

no

longer

be

sent

by

mail,

unless

you

specifically

request

paper

copies

of

the

reports.

Instead,

the

reports

will

be

made

available

on

the

Funds’

website

(

ThriventFunds.com

),

and

you

will

be

notified

by

mail

each

time

a

report

is

posted

and

provided

with

a

website

address

to

access

the

report.

If

you

already

elected

to

receive

shareholder

reports

electronically,

you

will

not

be

affected

by

this

change

and

you

do

not

need

to

take

any

action.

You

may

elect

to

receive

shareholder

reports

and

other

communications

from

a

Fund

electronically

by

contacting

your

financial

intermediary

(such

as

a

broker

dealer

or

bank)

where

you

purchased

shares

or,

if

you

purchased

shares

through

Thrivent

Financial,

by

enrolling

at

Thrivent.com/

gopaperless

or,

if

you

purchased

directly

online,

by

enrolling

at

ThriventFunds.com

.

You

may

elect

to

receive

all

future

shareholder

reports

in

paper

free

of

charge.

If

you

invest

directly

with

a

Fund,

you

can

call

800-847-

4836

to

let

us

know

you

wish

to

continue

receiving

paper

copies

of

your

shareholder

reports.

Your

election

to

receive

shareholder

re-

ports

in

paper

will

apply

to

all

funds

held

in

your

account.

If

you

invest

through

a

financial

intermediary,

you

can

contact

your

financial

intermediary

to

request

that

you

continue

to

receive

paper

copies

of

your

shareholder

reports.

Table

of

Contents

Letter

from

the

President

2

Shareholder

Expense

Example

3

Report

of

Independent

Registered

Public

Accounting

Firm

4

Schedule

of

Investments

5

Statement

of

Assets

and

Liabilities

9

Statement

of

Operations

10

Statement

of

Changes

in

Net

Assets

11

Statement

of

Cash

Flows

12

Notes

to

Financial

Statements

13

Financial

Highlights

25

Board

of

Trustees

and

Officers

27

2

Dear

Shareholder:

2

I

hope

you

are

staying

healthy

during

this

very

difficult

period

in

our

history,

as

the

effects

of

the

COVID-19

pandemic

have

had

a

dramatic

impact

not

only

here

in

the

U.S.

but

around

the

world.

We

pray

for

your

continued

health

and

well-being

in

the

months

ahead.

Since

launching

the

Thrivent

Church

Loan

and

Income

Fund

(XCLIX)

in

September

2018,

the

fund

has

had

a

major

positive

impact

on

many

churches

and

Christian

organizations

across

the

country.

In

all,

we

have

provided

vital

funding

to

more

than

40

churches

and

Christian

organizations,

and

we

continue

to

expand

the

reach

of

the

Fund

by

exploring

relationships

with

other

groups

that

are

in

need

of

funding

to

pursue

their

Christian

mission.

Through

March

2020,

we

had

provided

more

than

$20

million

in

funding

to

these

organizations

to

help

improve

their

facilities

and

expand

their

outreach.

The

loans

in

the

Fund’s

portfolio

have

gone

toward

a

variety

of

worthy

missions,

including

the

purchase

of

new

buildings,

improvements

on

church

campuses,

construction

of

Bible

schools,

and

the

training

of

new

leaders

to

share

the

Gospel.

The

loans

also

help

Christian

organizations

influence

their

communities

and

expand

outreach

to

elders

in

residential

care,

to

people

experiencing

homelessness

and

hunger,

and

to

Christians

who

may

not

have

a

church

home.

Through

the

Fund,

investors

are

making

an

important

impact

in

many

lives.

Church

loans

in

the

Fund

are

directly

originated

and

underwritten

by

Thrivent,

which

has

been

an

active

church

lender

for

more

than

100

years.

As

a

shareholder,

you

may

recognize

that

in

the

current

environment,

the

work

of

churches

and

other

Christian

organizations

has

become

more

important

than

ever.

In

Timonium,

Maryland,

Pastor

Shea

Strickland

of

Grace

Fellowship

(which

has

received

a

loan

through

the

Thrivent

Church

Loan

and

Income

Fund),

shared

this

story

on

how

his

church

has

been

reaching

members

and

helping

people

in

the

community

during

the

pandemic

even

though

they

must

conduct

church

services

remotely

online:

“Through

technology

we

were

able

to

get

the

word

out

to

our

members

to

not

only

watch

online,

but

to

tell

a

friend

to

watch

who

may

be

isolated,

struggling

or

searching

for

hope.  On

a

typical

Sunday

we

have

3,000

come

to

our

church

building

and

an

additional

300

streaming

online

for

worship,

and

we

had

more

than

8,000

who

streamed

the

service.

“We

are

praying

boldly

that

God’s

leading

us

to

reach

20,000

across

Maryland

and

beyond,

many

of

whom

are

not

current

church

goers

or

believers

in

Christ.”

“Not

only

did

we

share

the

message

of

hope

in

knowing

and

following

Jesus,

but

we

promoted

our

effective

online,

electronic

giving

with

a

special

emphasis

on

putting

more

into

our

community

Grace

Care

outreach

programs

that

focus

on

filling

in

the

gaps,

helping

those

at

risk,

people

affected

by

disabilities,

and

children

in

need

by

delivering

food

and

paper

products,

and

supporting

those

who

have

lost

their

jobs

–

whether

they

be

members

of

the

church

or

members

of

our

Timonium

community.

“God

is

on

the

move

and

we

are

multiplying

the

hope

that

Christ

brings

in

different

ways

than

originally

imagined.  Please

thank

your

Church

Loan

team

for

all

that

they

are

doing

to

help

churches

across

the

country

weather

this

storm.

There

are

going

to

be

some

tough

days

ahead,

but

I

believe

that

we

are

all

going

to

be

better

for

it

and

more

people

will

have

had

the

chance

to

hear

the

Gospel

message.”

We

are

heartened

to

see

what

our

friends

in

the

Christian

faith

are

doing

to

share

the

Gospel

and

help

those

in

their

community

during

these

difficult

times.

We

hope

you

and

your

loved

ones

will

stay

safe,

stay

healthy

and

stay

happy

during

the

challenging

days

and

months

ahead.

Sincerely,

David

S.

Royal

President

and

Chief

Investment

Officer

Thrivent Church

Loan

and

Income

Fund

Investing

involves

risk.

Before

investing,

consider

the

Fund's

investment

objectives,

risks,

charges

and

expenses.

Go

to

ThriventlntervalFunds.com

for

a

prospectus

containing

this

information

and

read

it

carefully.

The

Church

Loan

and

Income

Fund

invests

primarily

in

church

loans

and

mortgage-backed

securities.

Church

loans

are

mortgages

taken

out

by

non-profit

organizations

with

a

Christian

mission,

or

bonds

issued

by

these

organizations.

They

are

typically

not

listed

on

any

national

securities

exchange

and

no

active

trading

market

exists

for

them,

so

are

considered

illiquid.

These

and

other

risks

are

described

in

the

Fund's

prospectus.

The

Fund

is

a

closed-end

"interval

fund."

Limited

liquidity

is

provided

to

shareholders

only

through

the

Fund's

quarterly

offers

to

repurchase

between

5%

to

25%

of

its

outstanding

shares

at

net

asset

value

(subject

to

applicable

laws

and

approval

of

the

Board

of

Trustees).

There

is

no

secondary

market

for

the

Fund's

shares

and

none

is

expected

to

develop.

Investors

should

consider

shares

of

the

Fund

to

be

an

illiquid

investment.

This

organization's

experience

may

not

be

the

same

as

other

organizations

and

does

not

indicate

future

performance

or

success. 

3

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

Fund

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

October

1,

2019

through

March

31,

2020.

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

this

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

10/1/2019

Ending

Account

Value

3/31/2020

Expenses

Paid

During

Period

10/1/2019-

3/31/2020

*

Annualized

Expense

Ratio

Thrivent

Church

Loan

and

Income

Fund

Actual

Class

S

$1,000

$1,015

$6.14

1.22%

Hypothetical

**

Class

S

$1,000

$1,019

$6.15

1.22%

*

Expenses

are

equal

to

the

Fund's

annualized

expense

ratio,

multiplied

by

the

average

account

value

over

the

period,

multiplied

by

183/366

to

reflect

the

one-half

year

period.

**

Assuming

5%

annualized

total

return

before

expenses.

Report

of

Independent

Registered

Public

Accounting

Firm

4

C

O

H

E

N

&

C

O

M

P

A

N

Y

,

L

T

800.229.1099

|

866.818.4538

fax

|

cohencpa.com

Registered

with

the

Public

Company

Accounting

Oversight

Board

To

the

Shareholders

and

Board

of

Trustees

of

Thrivent

Church

Loan

and

Income

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Thrivent

Church

Loan

and

Income

Fund

(the

“Fund”)

as

of

March

31,

2020,

the

related

statements

of

operations

and

cash

flows

for

the

year

then

ended

and

the

statements

of

changes

in

net

assets

and

the

financial

highlights

for

each

of

the

two

periods

in

the

period

then

ended,

including

the

related

notes

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

March

31,

2020,

the

results

of

its

operations

and

its

cash

flows

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

periods

in

the

period

then

ended,

and

the

financial

highlights

for

each

of

the

two

periods

in

the

period

then

ended,

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(“PCAOB”)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

March

31,

2020,

by

correspondence

with

the

custodian,

counterparties,

and

brokers.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

We

have

served

as

the

Fund’s

auditor

since

2018.

COHEN

&

COMPANY,

LTD.

Cleveland,

Ohio

May

20,

2020

Thrivent

Church

Loan

and

Income

Fund

Schedule

of

Investments

as

of

March

31,

2020

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

schedule.

5

Principal

Amount

Church

Loans

(

76.5%

)

a

Value

Alabama

(1.9%)

Church

Loan

#

200030770

$

505,321

4.000%,

12/1/2039

b

$

521,174

Total

521,174

Arizona

(2.1%)

Church

Loan

#

200030680

551,620

3.950%,

11/1/2034

b

562,539

Total

562,539

Arkansas

(2.7%)

Church

Loan

#

200031540

734,023

3.200%,

12/15/2029

b

739,858

Total

739,858

California

(8.4%)

Church

Loan

#

200030850

448,696

4.550%,

11/15/2033

b

476,194

Church

Loan

#

200031050

479,750

4.650%,

11/15/2038

b

509,427

Church

Loan

#

200031180

1,215,140

5.050%,

1/1/2044

b

1,296,281

Total

2,281,902

Colorado

(1.9%)

Church

Loan

#

200031580

499,170

4.350%,

7/15/2039

b

515,958

Total

515,958

District

Of

Columbia

(0.9%)

Church

Loan

#

200031460

226,791

4.750%,

6/1/2034

b

236,097

Total

236,097

Florida

(1.9%)

Church

Loan

#

200031470

486,959

4.950%,

7/15/2039

b

510,158

Total

510,158

Illinois

(5.4%)

Church

Loan

#

200031070

661,212

4.500%,

11/15/2043

b

706,233

Church

Loan

#

200031210

598,355

3.950%,

2/15/2040

b

611,656

Church

Loan

#

200031211

173,246

3.200%,

2/15/2035

b

173,288

Total

1,491,177

Kentucky

(1.2%)

Church

Loan

#

200030120

330,393

4.600%,

8/1/2034

b

341,308

Total

341,308

Maryland

(4.1%)

Church

Loan

#

200030760

1,017,000

5.500%,

1/1/2044

b

1,107,902

Total

1,107,902

Principal

Amount

Church

Loans

(

76.5%

)

a

Value

Minnesota

(9.5%)

Church

Loan

#

200030790

$

735,000

3.800%,

11/15/2039

b

$

744,064

Church

Loan

#

200031020

143,994

3.800%,

1/1/2035

b

147,315

Church

Loan

#

200031120

234,785

4.570%,

11/15/2032

b

249,070

Church

Loan

#

200031121

236,944

4.440%,

11/15/2032

b

250,279

Church

Loan

#

200031122

236,608

4.180%,

11/15/2032

b

244,769

Church

Loan

#

200031290

237,776

5.000%,

1/15/2031

b

250,207

Church

Loan

#

200031300

285,600

3.800%,

3/1/2030

b

285,421

Church

Loan

#

200031560

476,660

4.150%,

8/15/2039

b

475,256

Total

2,646,381

Mississippi

(1.0%)

Church

Loan

#

200031400

261,452

4.900%,

3/15/2034

b

272,943

Total

272,943

New

Jersey

(1.0%)

Church

Loan

#

200030590

274,519

4.550%,

10/15/2034

b

280,169

Total

280,169

New

York

(4.7%)

Church

Loan

#

200018200

71,975

4.950%,

6/15/2029

b

73,531

Church

Loan

#

200031200

780,000

4.550%,

9/15/2044

b

785,745

Church

Loan

#

200031350

385,527

4.850%,

5/15/2039

b

407,087

Total

1,266,363

North

Carolina

(1.1%)

Church

Loan

#

200031320

294,625

4.200%,

3/15/2040

b

298,246

Total

298,246

Ohio

(1.5%)

Church

Loan

#

200031030

394,929

5.300%,

11/15/2033

b

419,847

Total

419,847

Oregon

(1.5%)

Church

Loan

#

200031370

385,296

5.100%,

4/15/2039

b

410,208

Total

410,208

Pennsylvania

(0.6%)

Church

Loan

#

200031390

153,000

3.400%,

3/1/2030

b

153,295

Total

153,295

Thrivent

Church

Loan

and

Income

Fund

Schedule

of

Investments

as

of

March

31,

2020

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

schedule.

6

Principal

Amount

Church

Loans

(

76.5%

)

a

Value

South

Dakota

(4.6%)

Church

Loan

#

200030780

$

614,728

2.990%,

4/1/2031

b

$

619,185

Church

Loan

#

200030920

616,982

3.125%,

1/1/2035

b

622,378

Total

1,241,563

Tennessee

(1.8%)

Church

Loan

#

200031360

451,307

4.750%,

3/15/2037

b

479,296

Total

479,296

Texas

(11.4%)

Church

Loan

#

200030080

379,452

4.550%,

7/1/2039

b,c

387,869

Church

Loan

#

200030110

669,602

4.350%,

9/15/2039

b,c

688,466

Church

Loan

#

200030830

423,718

4.125%,

11/1/2044

b

424,186

Church

Loan

#

200031140

439,662

5.250%,

12/15/2033

b

468,052

Church

Loan

#

200031170

716,965

3.550%,

2/1/2035

b

726,190

Church

Loan

#

200031330

203,680

4.950%,

3/15/2044

b

212,121

Church

Loan

#

200031331

203,788

5.125%,

3/15/2044

b

215,302

Total

3,122,186

Virginia

(2.6%)

Church

Loan

#

200031090

410,317

3.400%,

1/15/2032

b

417,153

Church

Loan

#

200031110

296,615

3.400%,

1/15/2032

b

301,557

Total

718,710

Wisconsin

(4.7%)

Church

Loan

#

200030840

296,232

3.400%,

11/15/2038

b

300,880

Church

Loan

#

200030841

284,269

3.100%,

11/15/2038

b

285,345

Church

Loan

#

200030842

177,620

2.900%,

11/15/2038

b

177,795

Church

Loan

#

200031510

424,061

4.750%,

6/1/2039

b,c

446,701

Church

Loan

#

200031530

98,204

4.200%,

5/15/2026

b

100,019

Total

1,310,740

Total

Church

Loans

(cost

$20,223,567)

20,928,020

Principal

Amount

Long-Term

Fixed

Income

(

22.5%

)

Value

Mortgage-Backed

Securities

(22.5%)

Federal

National

Mortgage

Association

Conventional

15-Yr.

Pass

Through

$

6,000,000

2.000%, 

5/1/2035

d

$

6,157,500

Total

6,157,500

Total

Long-Term

Fixed

Income

(cost

$6,090,000)

6,157,500

Shares

or

Principal

Amount

Short-Term

Investments

(

23.0%

)

Value

Federal

Home

Loan

Bank

Discount

Notes

4,030,000

0.070%,

4/22/2020

e

4,029,836

Thrivent

Core

Short-Term

Reserve

Fund

227,964

1.570%

f

2,275,084

Total

Short-Term

Investments

(cost

$6,309,239)

6,304,920

Total

Investments

(cost

$32,622,806)

122.0%

$33,390,440

Other

Assets

and

Liabilities,

Net

(22.0%)

(6,017,799)

Total

Net

Assets

100.0%

$27,372,641

a

All

Mortgagees

have

the

right

to

repay

the

loan

at

any

time.  The

Loans

are

generally

considered

to

be

illiquid

due

to

the

limited,

if

any,

secondary

market.

b

Security

is

valued

using

significant

unobservable

inputs.

Further

information

on

valuation

can

be

found

in

the

Notes

to

Financial

Statements.

c

Denotes

an

interest

only

loan.  Interest

only

loans

represent

the

right

to

receive

monthly

interest

payments

on

an

underlying

loan

position

for

an

agreed

upon

three

month

period

beginning

with

the

April

2020

payment.  The

outstanding

principal

amount

shown

is

the

outstanding

principal

balance

as

of

the

end

of

the

period.

d

Denotes

investments

purchased

on

a

when-issued

or

delayed

delivery

basis.

e

The

interest

rate

shown

reflects

the

yield,

coupon

rate

or

the

discount

rate

at

the

date

of

purchase.

f

The

interest

rate

shown

reflects

the

seven

day

yield

as

of

the

end

of

the

period.

Unrealized

Appreciation

(Depreciation)

Gross

unrealized

appreciation

and

depreciation

of

investments

of

the

portfolio

as

a

whole

(including

derivatives,

if

any),

based

on

cost

for

federal

income

tax

purposes,

were

as

follows:

Gross

unrealized

appreciation

$773,497

Gross

unrealized

depreciation

(5,902)

Net

unrealized

appreciation

(depreciation)

$767,595

Cost

for

federal

income

tax

purposes

$32,622,845

Thrivent

Church

Loan

and

Income

Fund

Schedule

of

Investments

as

of

March

31,

2020

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

schedule.

7

The

following

table

is

a

reconciliation

of

assets

in

which

significant

unobservable

inputs

(Level

3)

were

used

in

determining

fair

value

for

Church

Loan

and

Income

Fund as

discussed

in

the

Notes

to

Schedule

of

Investments.

*

Includes

the

change

in

net

unrealized

appreciation/(depreciation)

on

level

3

securities

held

on

March

31,

2020 of

$411,534. 

Located

on

the

Statement

of

Operations,

Change

in

net

unrealized

appreciation/(depreciation)

on

investments..

   ^

Located

on

the

Statement

of

Operations,

Net

realized

gains/(losses)

on

investments.

   #

Transferred

from

Level

2

to

Level

3

because

of

a

lack

of

observable

market

data,

resulting

from

a

decrease

in

market

activity

for

the

securities.

   @

Transferred

from

level

3

to

Level

2

because

observable

market

data

became

available

for

the

securities.

The

reporting

entity's

Church

Loan

level

3

securities'

fair

value

is

calculated

by

a

vendor

using

a

market

approach

with

a

discounted

cash

flow

model

based

on

the

established

policies

and

procedures

of

the

reporting

entity. 

Inputs

used

in

valuation

include

the

principal

and

interest

schedules,

bond

equivalent

ratings,

loan

transaction

spreads

with

a

range

of

0.03%

to

2.09%

(weighted

average

of

0.81%),

U.S.

Treasury

yields,

and

corporate

credit

curve

yields

with

a

range

of

1.86%

to

2.66%

(weighted

average

of

2.27%). 

Unobservable

inputs

were

weighted

by

the

rela-

tive

fair

value

of

the

instruments.

A

significant

increase

or

decrease

in

the

inputs

in

isolation

would

have

resulted

in

a

significantly

lower

or

higher

fair

value

measurement.

Fair

Valuation

Measurements

The

following

table

is

a

summary

of

the

inputs

used

as

of

March

31,

2020,

in

valuing

Church

Loan

and

Income

Fund's

assets

carried

at

fair

value.

Investments

in

Securities

Total

Level

1

Level

2

Level

3

Church

Loans

$20,928,020

$–

$–

$20,928,020

Long-Term

Fixed

Income

Mortgage-Backed

Securities

6,157,500

–

6,157,500

–

Short-Term

Investments

4,029,836

–

4,029,836

–

Subtotal

Investments

in

Securities

$31,115,356

$–

$10,187,336

$20,928,020

Other

Investments  *

Total

Affiliated

Short-Term

Investments

2,275,084

Subtotal

Other

Investments

$2,275,084

Total

Investments

at

Value

$33,390,440

*

Certain

investments

are

measured

at

fair

value

using

a

net

asset

value

per

share

that

is

not

publicly

available

(practical

expedient).  According

to

disclosure

requirements

of

Accounting

Standards

Codification

(ASC)

820,

Fair

Value

Measurement,

securities

valued

using

the

practical

expedient

are

not

classified

in

the

fair

value

hierarchy.  The

fair

value

amounts

presented

in

this

table

are

intended

to

permit

reconciliation

of

the

fair

value

hierarchy

to

the

amounts

presented

in

the

Statement

of

Assets

and

Liabilities.  

Investments

in

Securities 

Beginning Value

3/31/2019

Realized

Gain/

(Loss)

^

Change

in

Unrealized

Appreciation/

(Depreciation)

* 

Purchases 

Sales /

Paydowns

Transfers

Into

Level

3 

#

Transfers

Out

of

Level

3 

@

Ending

Value 

3/31/2020 

 Church

Loans

$7,695,572  

$-

$411,534  

$13,458,121  

$(637,207) 

$- 

$- 

$20,928,020  

Total 

$7,695,572 

$- 

$411,534 

$13,458,121  

($637,207) 

$-  

$-  

$20,928,020  

Investment

in

Affiliates

Affiliated

issuers,

as

defined

under

the

Investment

Company

Act

of

1940,

include

those

in

which

the

Fund's

holdings

of

an

issuer

represent

5%

or

more

of

the

outstanding

voting

securities

of

an

issuer,

any

affiliated

mutual

fund,

or

a

company

which

is

under

common

ownership

or

control

with

the

Fund.

 The

Fund

owns

shares

of

Thrivent

Core

Short-Term

Reserve

Fund,

a

series

of

Thrivent

Core

Funds,

primarily

to

serve

as

a

cash

sweep

vehicle

for

the

Fund.

Thrivent

Core

Funds

are

established

solely

for

investment

by

Thrivent

entities. 

A

summary

of

transactions

(in

thousands;

values

shown

as

zero

are

less

than

$500)

for

the

fiscal

year

to

date,

in

Church

Loan

and

Income

Fund,

is

as

follows:

Fund

Value

3/31/2019

Gross

Purchases

Gross

Sales

Value

3/31/2020

Shares

Held

at

3/31/2020

%

of

Net

Assets

3/31/2020

Affiliated

Short-Term

Investments

Core

Short-Term

Reserve,

1.570%

$742

$4,729

$3,192

$2,275

228

8.3%

Total

Affiliated

Short-Term

Investments

742

2,275

8.3

Total

Value

$742

$2,275

Thrivent

Church

Loan

and

Income

Fund

Schedule

of

Investments

as

of

March

31,

2020

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

schedule.

8

Fund

Net

Realized

Gain/(Loss)

Change

in

Unrealized

Appreciation/

(Depreciation)

Distributions

of

Realized

Capital

Gains

Income

Earned

4/1/2019

-

3/31/2020

Affiliated

Short-Term

Investments

Core

Short-Term

Reserve,

1.570%

$0

$(4)

$0

$25

Total

Income/Non

Income

Cash

from

Affiliated

Investments

$25

Total

$0

$(4)

$0

Thrivent

Church

Loan

and

Income

Fund

Statement

of

Assets

and

Liabilities

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

statement.

9

As

of

March

31,

2020

Church

Loan

and

Income

Fund

Assets

Investments

in

unaffiliated

securities

at

cost

$30,343,568

Investments

in

affiliated

securities

at

cost

$2,279,238

Investments

in

unaffiliated

securities

at

value

$31,115,356

Investments

in

affiliated

securities

at

value

2,275,084

Cash

1,967

Dividends

and

interest

receivable

67,195

Prepaid

expenses

11,970

Receivable

for:

Investments

sold

on

a

delayed

delivery

basis

15,792,594

Expense

reimbursements

72,754

Total

Assets

49,336,920

Liabilities

Distributions

payable

253

Accrued

expenses

35,447

Payable

for:

Investments

purchased

on

a

delayed

delivery

basis

21,864,949

Fund

shares

redeemed

109

Investment

advisory

fees

26,381

Administrative

fees

408

Transfer

agent

fees

937

Contingent

liabilities^

—

Loan

commitment

fee

deferred

revenue

24,568

Mortgage

dollar

roll

deferred

revenue

11,227

Total

Liabilities

21,964,279

Net

Assets

Capital

stock

(beneficial

interest)

26,632,582

Distributable

earnings/(accumulated

loss)

740,059

Total

Net

Assets

$27,372,641

Class

S

Share

Capital

$27,372,641

Shares

of

beneficial

interest

outstanding

(Class

S)

2,579,658

Net

asset

value

per

share

$10.61

^

Contingent

liabilities

accrual.  Additional

information

can

be

found

in

the

accompanying

Notes

to

Financial

Statements.

Thrivent

Church

Loan

and

Income

Fund

Statement

of

Operations

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

statement.

10

$

For

the

year

ended

March

31,

2020

Church

Loan

and

Income

Fund

Investment

Income

Taxable

interest

$

677,670

Income

from

mortgage

dollar

rolls

23,701

Income

from

affiliated

investments

24,955

Total

Investment

Income

726,326

Expenses

Adviser

fees

197,879

Administrative

service

fees

73,058

Amortization

of

offering

costs

31,062

Audit

and

legal

fees

258,665

Custody

fees

4,105

Insurance

expenses

40,558

Printing

and

postage

expenses

Class

S

12,411

SEC

and

state

registration

expenses

10,222

Transfer

agent

fees

Class

S

6,939

Trustees'

fees

137,500

Pricing

service

fees

117,823

Other

expenses

45,962

Total

Expenses

Before

Reimbursement

936,184

Less:

Reimbursement

from

adviser

(698,123)

Total

Net

Expenses

238,061

Net

Investment

Income/(Loss)

488,265

Realized

and

Unrealized

Gains/(Losses)

Net

realized

gains/(losses)

on:

Investments

66,809

Affiliated

investments

(39)

Distributions

of

realized

capital

gains

from

affiliated

investments

11

Change

in

net

unrealized

appreciation/(depreciation)

on:

Investments

466,774

Affiliated

investments

(4,155)

Net

Realized

and

Unrealized

Gains/(Losses)

529,400

Net

Increase/(Decrease)

in

Net

Assets

Resulting

From

Operations

$1,017,665

Thrivent

Church

Loan

and

Income

Fund

Statement

of

Changes

in

Net

Assets

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

statement.

11

Church

Loan

and

Income

Fund

For

the

periods

ended

3/31/2020

3/31/2019

(a)

Operations

Net

investment

income/(loss)

$488,265

$99,538

Net

realized

gains/(losses)

66,781

12,567

Change

in

net

unrealized

appreciation/(depreciation)

462,619

305,014

Net

Change

in

Net

Assets

Resulting

From

Operations

1,017,665

417,119

Distributions

to

Shareholders

From

income/realized

gains

Class

S

(601,490)

(155,359)

Total

from

income/realized

gains

(601,490)

(155,359)

Total

Distributions

to

Shareholders

(601,490)

(155,359)

Capital

Stock

Transactions

Class

S  

Sold

15,659,184

10,363,434

(b)

Distributions

reinvested

599,424

153,330

Redeemed

(80,666)

–

Total

Class

S

Capital

Stock

Transactions

16,177,942

10,516,764

Capital

Stock

Transactions

16,177,942

10,516,764

Net

Increase/(Decrease)

in

Net

Assets

16,594,117

10,778,524

Net

Assets,

Beginning

of

Period

10,778,524

–

Net

Assets,

End

of

Period

$27,372,641

$10,778,524

Capital

Stock

Share

Transactions

Class

S

shares

Sold

1,478,790

1,036,602

Distributions

reinvested

56,675

15,244

Redeemed

(7,653)

–

Total

Class

S

shares

1,527,812

1,051,846

(a)

(b)

For

the

period

from

September

28,

2018

(inception)

through

March

31,

2019.

Sales

include

initial

$100,000

investment

from

September

10,

2018.

Thrivent

Church

Loan

and

Income

Fund

Statement

of

Cash

Flows

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

statement.

12

For

the

year

ended

March

31,

2020

Church

Loan

and

Income

Fund

Cash

flows

from

operating

activities

Net

increase/(decrease)

in

net

assets

resulting

from

operations

$1,017,665

Adjustments

to

reconcile

net

change

in

net

assets

from

operations

to

net

cash

provided

by/(used

in)

operating

activities:

Purchases

of

long-term

investments

(81,032,289)

Purchases/sales

of

short-term

investments,

net

(3,309,317)

Proceeds

from

sale

of

long-term

investments

65,188,605

Change

in

net

unrealized

appreciation/(depreciation)

(462,619)

Net

realized

gains/(losses)

(66,781)

Net

change

in

payable

for

investments

purchased

on

a

delayed

delivery

basis

17,786,502

Net

change

in

receivable

for

investments

sold

on

a

delayed

delivery

basis

(14,707,744)

Net

change

in

dividends

and

interest

receivable

(44,469)

Amortization

of

premiums

and

discounts

(38,244)

Net

change

in

prepaid

expenses

(11,574)

Net

change

in

deferred

offering

costs

31,062

Net

change

in

accrued

expenses

10,187

Net

change

in

investment

advisory

fees

16,695

Net

change

in

administrative

fees

(5,575)

Net

change

in

transfer

agent

fees

655

Net

change

in

expense

reimbursements

24,349

Net

change

in

loan

commitment

fee

deferred

revenue

16,527

Net

change

in

mortgage

dollar

roll

deferred

revenue

10,797

Net

cash

provided

by/(used

in)

operating

activities

$(16,593,233)

Cash

flows

provided

by/(used

in)

financing

activities:

Proceeds

from

shares

issued,

net

of

change

in

receivable

for

fund

shares

sold

15,659,184

Distributions

to

shareholders,

paid

in

cash,

net

of

change

in

distributions

payable

(3,820)

Cost

of

shares

redeemed,

net

of

change

in

payable

for

fund

shares

redeemed

(80,557)

Net

cash

provided

by/(used

in)

financing

activities

$15,574,807

Net

increase/(decrease)

in

cash

$(761)

Cash

(beginning

balance)

$2,728

Cash

(ending

balance)

$1,967

Supplemental

disclosures

Non-cash

financing

activities

-

distributions

reinvested

$599,424

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2020

(1) ORGANIZATION

Thrivent

Church

Loan

and

Income

Fund

(the

“Fund”)

was

organized

as

a

Delaware

statutory

trust

on

October

23,

2017

and

is

registered

under

the

Investment

Company

Act

of

1940,

as

amended

(the

"1940

Act"),

as

a

non-diversified,

closed-end

management

investment

company

that

continuously

offers

its

shares

of

beneficial

interest

(the

"Shares"). 

The

Fund

currently

offers

one

class

of

Shares:

Class

S. 

The

Fund

has

authorized

an

unlimited

amount

of

Shares

with

no

par

value,

at

net

asset

value

("NAV")

per

Share. 

The

Fund

seeks

to

produce

income. 

 The

Fund

operates

as

an

interval

fund

pursuant

to

which it

conducts

quarterly

repurchase

offers

for

Shares,

which

are

for

between

5%

and

25%

of

the

Fund's

outstanding

Shares

at

NAV,

subject

to

approval

of

the

Fund's

Board

of

Trustees

("Board"). 

It

is

possible

that

a

repurchase

offer

may

be

oversubscribed,

with

the

result

that

shareholders

may

only

be

able

to

have

a

portion

of

their

Shares

repurchased. 

There

is

no

assurance

that

a

shareholder

will

be

able

to

tender

their

Shares

at

the

time

or

amount

desired. 

Shares

are

not

otherwise

redeemable. 

Quarterly

repurchase

offers

will

occur

in

the

months

of

March,

June,

September

and

December.

The Shares

are

not

listed

and

the

Fund

does

not

currently

intend

to

list

its

Shares

for

trading

on

any

national

securities

exchange. 

There

is

currently

no

secondary

market

for

its

Shares,

and

the

Fund

does

not

expect

a

secondary

market

in

its

Shares

to

develop. 

Even

though

the

Fund

makes

quarterly

repurchase

offers

for

Shares,

investors

should

consider

Shares

of

the

Fund

to

be

a

less liquid

investment.

The

Fund is an

investment

company that

follows

the

accounting

and

reporting

guidance

of

the

Financial

Accounting

Standards

Board

("FASB")

Accounting

Standards

Codification

Topic

946

–

"Financial

Services

–

Investment

Companies".

Under

the Fund's

organizational

documents,

its

officers

and

trustees

are

indemnified

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Fund.

In

addition,

in

the

normal

course

of

business,

the

Fund

enters

into

contracts

with

service

providers

and

others

that

provide

general

indemnification

clauses.

The

Fund's

maximum

exposure

under

these

contracts

is

unknown,

as

this

would

involve

future

claims

that

may

be

made

against

the

Fund.

However,

based

on

experience,

the

Fund

expects

the

risk

of

loss

to

be

remote.

(2)

SIGNIFICANT

ACCOUNTING

POLICIES

Valuation

of

Investments 

—

Securities

traded

on

U.S.

or

foreign

securities

exchanges

or

included

in

a

national

market

system

are

valued

at

the

last

sale

price

on

the

principal

exchange

as

of

the

close

of

regular

trading

on

such

exchange

or

the

official

closing

price

of

the

national

market

system.  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

Fund’s

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.

    All

church

loan

valuations

are

considered

fair

valuations

due

to

the

lack

of

observable

market

activity

or

independent

market

quotes. 

There

are

no

market

prices

available

for

church

loans. 

The Fund's

Investment

Adviser,

Thrivent

Asset

Management,

LLC

("Thrivent

Asset

Mgt." or the

"Adviser"), has

approved

two

methodologies

for

fair

valuing

church

loans:

a

Market

Approach

or

an

Income

Approach. 

The

Market

Approach

utilizes

a

process

that

takes

into

consideration

factors

including

principal

amount,

interest

rate,

term,

credit

quality

of

the

borrower,

prepayment

speeds, and

credit

spreads

based

on

market

transactions. 

The

Income

Approach

is

utilized

when

it

is

probable

that

the

church

loan

will

become

subject

to

foreclosure

and

takes

into

consideration

factors

including

the

estimated

value

of

property

securing

the

loan,

estimated

cost

of

disposition

of

the

property

and

estimated

time

to

dispose

of

the

property. 

The Board

may

use

a

third

party

vendor

to

execute

the

daily

valuation

methodology

or

the

Valuation

Committee

("Committee"),

further

described

below,

 may

make

a

fair

valuation

determination.

The

Board

has

delegated

responsibility

for

daily

valuation

of

the

Fund's

securities

to

the Adviser.

The

Adviser

has

formed

a Committee

that

is

responsible

for

overseeing

the

Fund's

valuation process

in

accordance

with

Valuation

Policies

and

Procedures.

The

Committee

meets monthly

and

on

an

as-

needed

basis

to

review

price

challenges,

price

overrides,

stale

prices,

shadow

prices,

manual

prices, and

other

securities

requiring

fair

valuation. 

The

Committee

monitors

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 the

use

of 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

are

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

accounting

principles

generally

accepted

in

the

United

States

of

America

("GAAP"),

the

various

inputs

13

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2020

14

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.

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.

Federal

Income Taxes 

—

No

provision

has

been

made

for

income

taxes

because

the

Fund’s

policy

is

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code

and

distribute

substantially

all

investment

company

taxable

income

and

net

capital

gain

on

a

timely

basis.

It

is

also

the

intention

of

the

Fund

to

distribute

an

amount

sufficient

to

avoid

imposition

of

any

federal

excise

tax.

The

Fund,

accordingly,

anticipates

paying

no

federal

taxes

and

no

federal

tax

provision

was

recorded.

The

Fund

may

utilize

earnings

and

profits

distributed

to

shareholders

on

the

redemption

of

Shares

as

part

of

the

dividends

paid

deduction.

GAAP

requires

management

of

the

Fund

(i.e.,

the

Adviser)

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

than

not”

standard

that,

based

on

the

technical

merits

of

the

position,

it 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,

the

Adviser

must

presume

that

the

position

will

be

examined

by

the

appropriate

taxing

authority

that

has

full

knowledge

of

all

relevant

information.

The

Adviser

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

Delaware.

As

of March

31,

2020,

open

U.S.

Federal,

Minnesota,

Wisconsin

and

Delaware

tax

years

include

the

tax

periods

ended

March

31,

2019 and

March

31, 2020.

The

Fund

has

no

examinations

in

progress

and

none

are

expected

at

this

time.

As

of

March

31,

2020,

the

Adviser

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

recognized

interest

and

penalties,

if

any,

related

to

uncertain

tax

benefits

as

income

tax

expense

in

the

Statement

of

Operations.

During

the

year,

the

Fund

did

not

incur

any

interest

or

penalties.

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.

Expenses

and

Income 

—

Estimated

expenses

are

accrued

daily.  The

Fund is

charged

for

those

expenses

that

are

directly

attributable

to

it.

Expenses

that

are

not

directly

attributable

to

the Fund

are

allocated

among

all

appropriate

affiliated

mutual

funds

in

proportion

to

their

respective

net

assets

or

number

of

shareholder

accounts,

or

other

reasonable

basis.

Interest

income

is recorded daily

on

all

debt

securities,

as

is

accretion

of

market

discount

and

original

issue

discount

and

amortization

of

premium

using

the

effective

yield

method. 

Dividend

income

and

capital

gain

distributions

are

recorded

on

the

ex-dividend

date. 

Non-cash

income,

if

any,

is

recorded

at

the

fair

market

value

of

the

securities

received. 

Realized

gains

and

losses

on

the

sale

of

securities

are

determined

using

cost

calculated

on

a

specific

identification

basis.

Distributions

to

Shareholders 

—

The

Fund

intends

to

distribute

most

or

all

of

its

net

earnings

and

realized

gains,

if

any,

in

the

form

of

dividends

from

net

investment

income

("dividends")

and

distributions

of

net

realized

capital

gains

("capital

gain

distributions,"

and

together

with

dividends,

"distributions").

The

Fund

intends

to

declare

dividends

daily

and

distribute

them

to

Shareholders

of

record

monthly.

Dividends and

interest

received

by

the

Fund are

derived

from

net

investment

income.

Capital

gain

distributions,

if

any,

usually

will

be

declared

and

paid

in

December

for

the

prior

twelve-month

period

ending October 31.

The

Fund

does

not

have

a

fixed

distribution

rate

nor

does

it

guarantee

that

it

will

pay

any

distributions

in

any

particular

period.

Mortgage

Dollar

Roll

Transactions 

— The

Fund

may enter

into

dollar

roll

transactions

on

securities

issued

or

to

be

issued

by

the

Government

National

Mortgage

Association,

Federal

National

Mortgage

Association

and

Federal

Home

Loan

Mortgage

Corporation,

in

which

the

Fund

sells

mortgage

securities

and

simultaneously

agrees

to

repurchase

similar

(same

type

and

coupon)

securities

at

a

later

date

at

an

agreed

upon

price.

The

Fund

must

maintain

liquid

securities

having

a

value

at

least

equal

to

the

repurchase

price

(including

accrued

interest)

for

such

dollar

rolls.

In

addition,

the

Fund is

required

to segregate

collateral

with the

Fund's

custodian (depending

on

market

movements)

on

their

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2020

15

mortgage

dollar

rolls. 

The

value

of

the

securities

that

the

Fund is

required

to

purchase

may

decline

below

the

agreed

upon

repurchase

price

of

those

securities.

During

the

period

between

the

sale

and

repurchase,

the

Fund

forgoes

principal

and

interest

paid

on

the

mortgage

securities

sold.

The

Fund is

compensated

from

negotiated

fees

paid

by

brokers

offered

as

an

inducement

to

the

Fund

to

"roll

over" its

purchase

commitments,

thus

enhancing

the

yield.

Mortgage

dollar

rolls

may

be

renewed

with

a

new

purchase

and

repurchase

price

and

a

cash

settlement

made

on

settlement

date

without

physical

delivery

of

the

securities

subject

to

the

contract.

The

fees

received

are

recognized

over

the

roll

period

and

are

included

in

Income

from

mortgage

dollar

rolls

in

the

Statement

of

Operations.

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.

Accounting

Estimates 

—

The

financial

statements

are

prepared

in

conformity

with

GAAP,

which 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

those

estimates.

Loan

Commitment

Fees 

— The

Fund

may

receive

loan

commitment

fees

prior

to

loan

closing

and

before

the

loan

is

purchased

by

the

Fund.

Commitment

fees

are

fees

a

lender

charges

the

borrower

in

order

to

keep

a

specific

loan

amount

available

to

the

borrower.

Any

such

fees

received

by

the

Fund, net

of

applicable

loan

origination

expenses

paid

by

the

Fund will

be

accounted

for

as

an

adjustment

to

the

yield

of

the

corresponding loan

using

the

straight-line

method

over

the

life

of

the

loan.

Contingent

Liabilities

— In

the event

of

adversary

action

proceedings

where

the

Fund

is

a

defendant,

the

loss

contingency

will

not

be

accrued

as

a

liability until

the

amount

of

potential

damages

and

the

likelihood

of

loss

can

be

reasonably

estimated. 

Litigation 

—

Awards

from

class

action

litigation

are

recorded

as

a

reduction

of

cost

if

the

Fund

still

owns

the

applicable

securities

on

the

payment

date. 

If

the

Fund

no

longer

owns

the

applicable

securities,

the

proceeds

are

recorded

as

realized

gains. 

Amortization

of

Offering

Costs 

— The

offering

costs

referenced

in

the

Statement

of

Operations

for the

Fund

are

costs

incurred

by

the

Fund

in

order

to

establish

it

for

sale,

including

legal fees

and

prospectus

and

registration

costs.  These

costs

are

amortized

over

a

period

of

12

months

from

inception.

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2020

16

Repurchase

Offers 

— The

Fund's

Shares

are

not

redeemable

each

business

day,

are

not

listed

for

trading

on

an

exchange,

and

no

secondary

market

currently

exists

for

Fund

Shares. 

As

an

interval

fund

and

as

described

in

the

Fund's

prospectus,

the

Fund

will make

quarterly

repurchase

offers

of

up

to

25% of

its

outstanding

Shares

at

NAV. 

During

the year

ended

March

31,

2020,

the

Fund had repurchase

offers

as

follows:  

For

the

offer

period

May

24,

2019

through

June

17,

2019:

For

the offer

period

of

August

22,

2019

through

September

13,

2019:

For

the

offer

period

of November

19,

2019

through

December

13,

2019: 

For

the

offer

period

of February

18,

2020

through March

13,

2020:  

Recent

Accounting

Pronouncements 

—

Fair

Value

Measurement

(Topic

820)

In

August

2018,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2018-13

Fair

Value

Measurement

(Topic

820),

which

eliminates,

adds

and

modifies

certain

disclosure

requirements

for

fair

value

measurements.

Under

the

guidance,

entities

are

no

longer

required

to

disclose

the

amount

of

and

reasons

for

transfers

between

Level

1

and

Level

2

of

the

fair

value

hierarchy,

but

public

companies

are

required

to

disclose

(1)

the

changes

in

unrealized

gains

and

losses

for

the

period

included

in

other

comprehensive

income

for

recurring

Level

3

fair

value

measurements

of

instruments

held

at

the

end

of

the

reporting

period

and

(2)

the

range

and

the

weighted

average

used

to

develop

significant

unobservable

inputs

for

Level

3

fair

value

measurements.

The

ASU

No.

2018-13

is

effective

for

annual

periods,

and

interim

periods

within

those

annual

periods,

beginning

on

or

after

December

15,

2019,

with

early

adoption

permitted.

As

such,

management

has

adopted

the

amendments

as

of

the

beginning

of

the

fiscal

period. 

Early

adoption

of

this

ASU

did

not

have

an

impact

on

the

Fund’s

financial

condition

or

results

of

operations

but

resulted

in

some

modified

financial

statement

disclosures.

(3)

FEES

AND

COMPENSATION

PAID

TO

AFFILIATES

Investment

Advisory

Fees 

—

The

Fund

has

entered

into

an

Investment

Management

Agreement

with

Thrivent

Asset

Mgt.

Under

the

Investment

Management

Agreement,

the

Fund

pays

an

annual

fee

of

1.10%

of

average

daily

net

assets

for

investment

advisory

services.

The

fees

are

accrued

daily

and

paid

monthly.

Expense

Reimbursements 

— The

Adviser

has

contractually

agreed

to

waive

fees

and/or

reimburse

expenses

of

the

Fund’s

Class

S

Shares

through

at

least

July

31,

2021

to

the

extent

that

the

total

annual

Fund

operating

expenses

exceed

1.00%

of

average

daily

net

assets

(excluding

taxes,

interest,

brokerage

commissions,

acquired

fund

fees

and

expenses,

securities

lending

fees,

expenses

associated

with

securities

sold

short,

litigation,

and

other

extraordinary

expenses). Effective

December

31,

2019,

the

total

annual

fund

operating

expense

waiver was

reduced

from

1.50%

to

1.00%. 

Expense

reimbursements

are

accrued

daily

and

paid

monthly.

Amounts

waived

by

the

Adviser

during

the

contractual

period

cannot

be

recouped

by

the

Adviser

in

subsequent

periods.

This

fee

waiver

may

not

be

terminated

before

the

indicated

termination

date

without

the

consent

of

the

Fund’s

Board,

including

a

majority

of

the

Trustees

who

are

not

“interested

persons”

of

the

Fund

as

defined

in

Section

2(a)(19)

of

the

1940

Act.

Other

Fees 

—

The

Fund

has

entered

into

an

agreement

with

Thrivent

Financial

Investor

Services

Inc.

("TFISI")

to

provide

transfer

agency

and

dividend

payment

services

necessary

to

the

Fund.

Under

the

Transfer

Agency

Agreement,

the

Fund

pays

TFISI

an

annual

fee

equal

to

three

basis

points

of

the

Fund’s

average

daily

net

assets,

plus

a

per

account

annual

maintenance

fee

of

$21.50

per

account.

The

fees

are

accrued

daily

and

paid

monthly.

The

Fund

has

entered

into

an

accounting

and

administrative

services

agreement

with

TAM pursuant

to

which

TAM

provides

certain

accounting

and

administrative

personnel

and

services

to

the

Fund.

The

Fund

pays

an

annual

fixed

fee

of

$70,000

plus

0.017%

of

average

daily

net

assets.

The

fees

are

accrued

daily

and

paid

monthly.  

The

Fund

enters

into

agreements

with

Thrivent

Financial

for

Lutherans

("TFL")

to

purchase

participation

interests

in

church

loans

underwritten

by

TFL. 

The

Fund

does

not

pay

TFL

a

transaction

or

origination

fee

for

such

service,

but

does

bear

Repurchase

Pricing

Date

Repurchase

Offer

Amount

%

of

Shares

Tendered

Number

of

Shares

Tendered

6/18/2019

20%

0.16%

1,972

Repurchase

Pricing

Date

Repurchase

Offer

Amount

%

of

Shares

Tendered

Number

of

Shares

Tendered

9/16/2019

20%

0.01%

103

Repurchase

Pricing

Date

Repurchase

Offer

Amount

%

of

Shares

Tendered

Number

of

Shares

Tendered

12/16/2019

20%

0.19%

4,004

Repurchase

Pricing

Date

Repurchase

Offer

Amount

%

of

Shares

Tendered

Number

of

Shares

Tendered

3/16/2020

20%

0.06%

1,574

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2020

17

a

pro

rata

share

of

the

certain

fees

and

expenses

associated

with

the

church

loans.

(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.

The

differences

between

book-basis

and

tax-basis

distributable

earnings

are

primarily

attributable

to

timing

differences

in

recognizing

organizational

costs

and

loan

commitment

fees.  At

the

end

of

the

fiscal

year,

reclassifications

between

net

asset

accounts

are

made

for

differences

that

are

permanent

in

nature. 

These

permanent

differences primarily

relate

to

the

tax

treatment

of offering

costs

and refinanced

loans.   

On

the

Statement

of

Assets

and

Liabilities,

as

a

result

of

permanent

book-to-tax

differences,

reclassification

adjustments

were

made

as

follows:

During

the year

ended

March

31,

2020,

and

the period

ended

March

31,

2019

the

Fund

distributed

$601,490

and

$155,359

from

ordinary

income,

respectively. 

At

March

31,

2020,

undistributed

ordinary

income

for

tax

purposes

was

$58,724

and

undistributed

long-term

gains

was

$2,946. 

The

Fund

had

other

accumulated

losses

of

$(89,206). 

(5)

SECURITY

TRANSACTIONS 

Purchases

and

Sales

of

Investment

Securities 

—

For

the

year

ended

March

31,

2020,

the

cost

of

purchases

and

the

proceeds

from

sales

of

investment

securities,

other

than

U.S.

Government

and

short-term

securities,

were

as

follows:

Purchases

and

sales

of

U.S.

Government

securities

were:

Investments

in

Restricted

Securities 

—

The

Fund

may

own

restricted

securities which

were

purchased

in

private

placement

transactions

without

registration

under

the

Securities

Act

of

1933.

Unless

such

securities

subsequently

become

registered,

they

generally

may

be

resold

only

in

privately

negotiated

transactions

with

a

limited

number

of

purchasers.

As

of

March

31,

2020,

the

Fund

did

not

hold

restricted

securities. 

The

Fund

has

no

right

to

require

registration

of

unregistered

securities. 

(6)

RELATED

PARTY

TRANSACTIONS

The

Fund’s

Adviser

and

Administrator,

TAM,

the

Fund’s

distributor,

Thrivent

Distributors,

LLC

and

the

Fund’s

transfer

agent,

TFISI

are

considered

related

parties

to

the

Fund.

Certain

officers

and

Trustees

of

the

Fund

are

officers

and

directors

of

TAM and

TFISI. 

As

of

March

31,

2020,

related

parties

held 83.51%

of

the

outstanding

Shares

of

the

Fund.

Subscription

and

redemption

activity

by

concentrated

accounts

may

have

a

significant

effect

on

the

operation

of

the

Fund. 

In

the

case

of

a

large

redemption,

the

Fund

may

be

forced

to

sell

investments

at

inopportune

times,

resulting

in

additional

losses

for

the

Fund.

(7)

SUBSEQUENT

EVENTS

The

Adviser

of

the

Fund

has

evaluated

the

impact

of

subsequent

events

through

the

issuance

date

of

the

financial

statements,

and

has

determined

that

no

items

require

disclosure

in

or

adjustment

to

the

financial

statements

other

than

the

item

noted

below. 

Effective

May

1,

2020,

Church

Loan

#200030760

was

refinanced

with

a

new

fixed

rate

of

4.30%

from

the

original

rate

of

5.50%. 

The

value

of

the

holding

between

the

date

of

the

Statement

of

Assets

and

Liabilities

and

the

refinance

date

was

decreased

by

$90,902.47

or

approximately

33

basis

points

of

the

Fund's

net

assets

at

year

end.

The

change

in

value

of

the

loan

was

impacted

by

ongoing

market

activity

in

addition

to

the

interest

rate

change.

(8) MARKET

RISK

Over

time,

securities

markets

generally

tend

to

move

in

cycles

with

periods

when

security

prices

rise

and

periods

when

security

prices

decline. 

The

value

of

a

Fund's

investments

may

move

with

these

cycles

and,

in

some

instances,

increase

or

decrease

more

than

the

applicable

market(s)

as

measured

by

the

Fund's

benchmark

index(es).

The

securities

markets

may

also

decline

because

of

factors

that

affect

a

particular

industry.

As

of March

31,

2020,

the Fund

had

portfolio

concentration

greater

than

25%

in

certain

sectors.

(9)

SIGNIFICANT

RISKS

New/Small

Fund

Risk

— 

The performance

of

a

new

or

smaller

fund,

such

as

the

Fund,

may

not

represent

how

the

fund

is

Portfolio

Distributable

earnings/

(accumulated

loss)

Capital

Stock

Church

Loan

and

Income

Fund

$31,062

$(31,062)

In

thousands

Fund

Purchases

Sales

Church

Loan

and

Income

Fund

$13,458

$637

In

thousands

Fund

Purchases

Sales

Church

Loan

and

Income

Fund

$67,574

$64,551

Fund

Sector

%

of

Total

Net

Assets

Church

Loan

and

Income

Fund

Church

Loans

76.5%

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2020

18

expected

to,

or

may,

perform

in

the

long

term

if

and

when

it

becomes

larger

and

has

fully

implemented

its

investment

strategies. 

New

and

smaller

funds

may

also

require

a

period

of

time

before

they

are

invested

in

securities

that

meet

their

investment

objectives

and

policies

and

achieve

a

representative

portfolio

composition. 

Fund

performance

may

be

lower

or

higher

during this

"ramp-up"

period,

and

may

also

be

more

volatile,

than

would

be

the

case

after

the

Fund

is

fully

invested.

Church

Loan

Related

Risks

— In

making

investments

in

church

loans,

the

Fund

will

depend

primarily

on

the

creditworthiness

of

the

borrower

for

payment

of

principal

and

interest.

Churches

rely

on

voluntary

contributions

from

their

congregations

for

their

primary

source

of

income.

Member

contributions

are

used

to

repay

church

loans.

The

membership

of

a

church,

the

attendance

of

its

members,

or

the

per

capita

contributions

of

its

members

may

not

remain

constant

or

may

decrease during

the

term

of

a church

loan.

A

decrease

in

a

church’s

income

could

result

in

its

inability

to

pay

its

obligation

under

a

church

loan. 

In

addition,

events

such

as

the

pandemic

spread

of

the

novel

coronavirus

known

as

COVID-19,

the

duration

and

effects

of

which

are

uncertain,

may

result

in

a

decrease

in

voluntary

contributions

from

church

congregations. A

church’s

senior

pastor

also

plays

an

important

role

in

the

management

and

continued

viability

of

a

church.

A

senior

pastor’s

absence,

personal

actions,

resignation

or

death

could

have

a

negative

impact

on

a

borrower’s

operations,

and

thus

its

continued

ability

to

generate

income

sufficient

to

service

its

obligations

under

a

church

loan.

National

church

body

decisions

can

impact

individual

church

membership.

Certain

independent

churches

have

little

to

no

financial

support

from

national

church

bodies;

likewise,

national

church

bodies

have

limited

resources

available

for

individual

church

support.

A

church’s

income

also

could

be

affected

by

increases

in

expenses

caused

by

increases

in

interest

rates

on

floating

rate

or

variable

rate

church

loans,

the

occurrence

of

any

uninsured

casualty

at

the

property,

any

need

to

address

environmental

contamination

at

the

property,

changes

in

governmental

rules,

regulations

and

fiscal

policies,

terrorism,

social

unrest

or

civil

disturbances.

Due

to

the

corporate

structure

of

borrowers,

which

can

include

volunteers

serving

in

key

executive

functions

such

as

Treasurer,

the

servicing

agent

administering

church

loans

may

use

broad

discretion

in

enforcing

the

terms

of

such

church

loans

especially

with

regard

to

timing

and

fees

charged.

Assignment

or

Participation

Risk

— The

Fund

may

acquire

exposure

to

church

mortgage

loans

through

loan

assignments

or

participations.

With

assignments,

the

purchaser

typically

succeeds

to

all

the

rights

and

obligations

of

the

assigning

institution

and

becomes

a

lender

under

the

loan

agreement. By

contrast,

participations

typically

result

in

contractual

relationships

only

with

the

institution

participating

out

the

interest,

not

with

the

Borrower. 

In

purchasing

participations,

the

Fund

generally

will

have

no

right

to

enforce

compliance

by

the

Borrower

with

the

terms

of

the

loan

agreement.

The

Fund

also

will

be

exposed

to

the

credit

risk

of

both

the

Borrower

and

the

institution

selling

the

participation.

Availability

of

Investment

Opportunities; Competition Risks

—

 Thrivent

Financial

and

the

Fund

compete

for

investment

opportunities

with

church

loan

financing

companies,

banks,

savings

and

loan

associations,

denominational

loan

funds

and

lenders,

credit

unions,

real

estate

investment

trusts,

insurance

companies

and

other

financial

institutions

to

service

this

market.

Many

of

these

entities

may

have

greater

marketing

resources,

extensive

networks

of

offices

and

locations,

or

larger

staffs

devoted

to

church

loan

financing.

In

addition,

regulatory

restrictions,

actual

or

potential

conflicts

of

interest

or

other

considerations

may

cause

the

Adviser

to

restrict

or

prohibit

participation

in

certain

investments.

Collateral

Risk;

Real

Estate

Risk 

— There

is

a

risk

that

the

value

of

any

collateral

securing

a

church

loan

in

which

the

Fund

has

an

interest

may

not

be

estimated

correctly

or

may

decline

and

that

the

collateral

may

not

be

sufficient

to

cover

the

amount

owed

on

the

loan.

Because

the

Fund’s

church

loans

are

primarily

backed

by

real

estate,

these

investments

are

vulnerable

to

factors

that

affect

the

real

estate

used

to

collateralize

the

church

loans

and

the

local

and

national

real

estate

markets.

Factors

affecting

the

value

of

real

estate

investments

include,

but

are

not

limited

to,

changes

in

local

or

national

economic

or

employment

conditions,

changes

in

interest

rates,

zoning

laws

or

property

taxes,

supply

and

demand,

environmental

problems,

losses

from

a

casualty

or

condemnation,

maintenance

problems,

operating

expenses,

population

changes,

and

social

and

economic

trends.

Property

tax

liens

would

also

affect

the

availability

of

cash

to

pay

other

creditors

in

the

event

of

a

sale

of

the

real

estate,

through

foreclosure

or

otherwise.

Furthermore,

in

the

case

of

certain

church

loans,

the

property

backing

the

investments

may

have

limited

suitability

for

other

purposes.

Concentration Risk

— Under

normal

circumstances,

the

Fund

will

concentrate

its

investments in

the

securities

and/or

other

instruments

of

U.S.

non-profit

organizations

that

have

a

stated

Christian

mission

including,

but

not

limited

to,

local

churches,

denominations

and

associations,

educational

institutions,

and

other

Christian

mission-related

organizations.

The

Fund

will

thus

be

exposed

to

negative

developments

affecting

church-related

institutions,

as

well

as

negative

developments

affecting

real

estate-related

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2020

19

investments

and

real

property

generally.

These

factors

are

discussed

under

“Church

Loan

Related

Risks”

and

“Collateral

Risk;

Real

Estate

Risk”

above.

Construction

Loan Risk

—  The

Fund

may

invest

in

church

loans

for

construction

projects.

Construction

projects

may

include:

new

development,

expansion,

remodeling

and/

or

renovation

and

repairs.

The

interest

rate

is

typically

set

on

these

construction

loans

at

the

time

of

the

loan

commitment,

and

funded

incrementally

over

time

as

the

project

is

completed.

The

Fund

will

have

an

obligation

to

make

additional

advances

as

the

project

is

completed.

The

Fund

generally

ensures

its

ability

to

satisfy

such

demands

by

segregating

sufficient

assets

in

high

quality

short

term

liquid

investments.

In

addition,

construction

loans

may

be

considered

higher

risk

during

the

construction

phase

(e.g.,

potential

mechanics

liens

or

other

collateral

impacts

may

occur

including

risk

of

non-completion).

Default Risk

— Default

in

the

payment

of

interest

or

principal

on

a

church

loan

or

an

increased

risk

of

default

may

result

in

a

reduction

in

income

to

the

Fund,

a

reduction

in

the

value

of

a

Church

Loan

and/or

a

decrease

in

the

Fund’s

NAV

per

Share. The

risk

of

default

increases

in

the

event

of

an

economic

downturn,

a

decline

in

the

value

of

real

estate,

or

a

substantial

increase

in

interest

rates

on

floating

or

variable

rate

church

loans.

In

the

event

of

any

default

under

a

Church

Loan,

the

Fund

will

bear

a

risk

of

loss

of

principal

to

the

extent

of

any

deficiency

between

the

value

of

any

collateral

that

is

liquidated

and

the

principal

and

accrued

and

unpaid

interest

of

the

church

loan.

Efforts

to

return

a

non-performing

church

loan

to

performing

status

can

be

lengthy

and

may

negatively

affect

the

Fund’s

anticipated

return.

In

the

event

a

Borrower

defaults,

the

Fund’s

access

to

the

collateral

may

be

limited

or

delayed

by

bankruptcy

or

other

insolvency

laws.

Environmental

Liability

Risk

— If

there

are

previously

unidentified

environmental

problems

associated

with

the

real

estate

securing

any

of

the

Fund’s

church

loans,

the

associated

remediation

or

removal

requirements

imposed

by

federal,

state

and

local

laws

and

regulations

could

affect

the

Fund’s

ability

to

realize

value

on

the

collateral

or

the

Borrower’s

ability

to

repay

the

church

loan.

Under

federal,

state

and

local

laws

and

regulations,

a

secured

lender,

like

the

Fund,

may

be

liable,

under

certain

limited

circumstances,

for

the

costs

of

removal

or

remediation

of

certain

hazardous

or

toxic

substances

and

other

costs

(including

government

fines

and

injuries

to

persons

and

adjacent

property).

The

presence

of

hazardous

or

toxic

substances,

or

the

failure

to

promptly

remediate

such

substances,

may

adversely

affect

the

Fund’s

ability

to

resell

real

estate

collateral

after

foreclosure

or

could

cause

the

Fund

to

forego

foreclosure.

Illiquid

Securities Risk

— Church

loans

are

typically

not

listed

on

any

national

securities

exchange

or

automated

quotation

system

and

no

active

trading

market

exists

for

these

instruments.

Some

church

loans

also

contain

restrictions

on

transfers

and

there

is

a

lack

of

publicly

available

information

on

most

church

loans.

As

a

result,

church

loans

are

generally

considered

illiquid.

To

the

extent

consistent

with

the

applicable

liquidity

requirements

for

interval

funds

set

forth

in

Rule

23c-3

under

the

1940

Act,

the

Fund

may

invest

without

limit

in

illiquid

securities

and

at

any

given

time,

the

Fund’s

portfolio

may

be

substantially

illiquid.

The

market

for

illiquid

securities

is

more

volatile

than

the

market

for

liquid

securities.

To

the

extent

that

a

secondary

market

does

exist

for

church

loans,

the

market

may

be

subject

to

irregular

trading

activity,

wide

bid/ask

spreads

and

extended

trade

settlement

periods.

The

illiquid

market

for

church

loans

means

that

the

Fund

may

not

be

able

to

sell

its

holdings

at

a

time

when

it

may

otherwise

be

desirable

to

do

so

or

may

require

the

Fund

to

sell

at

prices

that

are

less

than

what

the

Fund

regards

as

their

fair

market

value,

which

would

adversely

affect

the

Fund’s

NAV

per

share.

In

addition,

due

to

the

illiquidity

of

the

church

loan

market,

and

the

intent

to

hold

church

loans

to

maturity,

the

Fund

may

be

limited

in

its

ability

to

turn

over

its

investments

in

church

loans

to

obtain

debt

securities

with

more

attractive

rates

of

return.

Church

loans

are

typically

valued

using

significant

unobservable

inputs.

Market

quotations

or

prices

are

likely

not

readily

available

or

may

be

determined

to

be

unreliable.

Value

will be

determined

in

good

faith

pursuant

to

fair

valuation

procedures

adopted

by

the

Board.

See

“Valuation

Risk”

below.

Certain

church

loans

may

trade

in

an

over-the-counter

market,

and

confirmation

and

settlement

may

take

significantly

longer

than

traditional

fixed-income

security

transactions

to

complete.

Transactions

in

church

loans

may

settle

on

a

delayed

basis,

and

the

Fund

may

not

receive

the

proceeds

from

the

sale

of

a

loan

for

a

substantial

period

after

the

sale.

As

a

result,

those

proceeds

will

not

be

available

to

make

additional

investments. 

In

most

cases,

the

Fund

intends

to

hold

church

loans

to

maturity.

No

Public

Information;

Not

Rated Risk

—

There

is

generally

no

publicly

available

information

about

the

Borrowers

of

church

loans.

In

addition,

church

loans

are

not

rated

by

a

nationally

recognized

statistical

rating

organization

("NRSROs")

or

other

independent

parties.

The

Adviser

must

rely

on

the

Borrowers,

its

own

due

diligence

and/or

the

due

diligence

efforts

of

Thrivent

Financial,

its

affiliates,

or

unaffiliated

third

parties

to

obtain

the

information

that

the

Adviser

considers

when

investing

in

church

loans.

To

some

extent,

the

Adviser,

its

affiliates,

or

unaffiliated

third

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2020

20

parties

rely

upon

the

Borrower’s

staff

to

provide

full

and

accurate

disclosure

of

material

information

concerning

their

operations

and

financial

condition.

The

Adviser,

its

affiliates,

or

unaffiliated

third

parties

may

not

have

access

to

all

of

the

material

information

about

a

particular

Borrower’s

operations,

financial

condition

and

prospects,

or

a

Borrower’s

accounting

records

may

be

poorly

maintained

or

organized.

The

financial

condition

and

prospects

of

a

Borrower

may

also

change

rapidly.

In

such

instances,

the

Adviser

may

not

be

able

to

make

a

fully

informed

investment

decision

which

may

lead,

ultimately,

to

a

default

by

the

Borrower

and

a

loss

of

some

or

all

of

the

Fund’s

investment.

Prepayment Risk

— Generally

borrowers

may

prepay

the

principal

amount

of

their

church

loans

at

any

time,

although

prepayment

fees

or

penalties

may

apply.

In

periods

of

falling

interest

rates,

Borrowers

may

be

more

likely

to

prepay

their

church

loans

to

refinance

at

lower

interest

rates.

Prepayment

would

cause

the

actual

duration

of

a

church

loan

to

be

shorter

than

its

stated

maturity.

See

“Duration

and

Maturity

Risk”

below.

In

the

event

of

a

full

prepayment,

the

Fund

would

lose

the

income

that

would

have

been

earned

to

maturity

on

the

church

loan.

Further,

material

partial

principal

prepayments

of

Church

Loans

may

result

in

a

reamortization

of

the

remaining

principal

balance

over

the

current

maturity,

which

would

mean

the

Fund

would

receive

lower

payments

of

principal

and

interest

over

the

remaining

term

of

the

Church

Loan.

The

proceeds

received

by

the

Fund

from

prepayments

may

be

reinvested

in

church

loans

or

other

debt

securities

paying

lower

interest

rates.

Second

Lien Church

Loan

Risk

— Second

lien church

loans

are

junior

in

priority

to

church

loans

secured

with

a

first

lien.

For

this

reason,

they

present

a

greater

degree

of

investment

risk

than

first

lien

church

loans.

If

a

Borrower

defaults

on

a

debt

obligation

senior

to

the

Fund’s

church

loan,

or

in

the

event

of

a

Borrower

bankruptcy,

the

Fund’s

second

lien church

loan

will

be

satisfied

only

after

the

senior

debt.

In

the

event

of

an

investment

in

second

lien

church

loans, the

Fund

may

not

recover

some

or

all

of

its

investment.

Special Risks

— Special

risks

associated

with

exposures

to

church

loans

include

(i)

the

possible

invalidation

of

an

investment

transaction

as

a

fraudulent

conveyance

under

relevant

creditors’

rights

laws

and

(ii)

so-called

lender-liability

claims

by

the

Borrowers

of

the

obligations.

Successful

claims

with

respect

to

such

matters

may

reduce

the

cash

flow

and/

or

market

value

of

the

investment.

Church

loans

are

subject

to

the

risk

that

a

court,

pursuant

to

fraudulent

conveyance

or

other

similar

laws,

could

subordinate

these

instruments

to

presently

existing

or

future

indebtedness

of

the

Borrower

or

take

other

action

detrimental

to

holders

of

the

church

loan.

Such

court

action

could

under

certain

circumstances

include

invalidation

of

the

church

loan.

It

is

conceivable

that

under

emerging

legal

theories

of

lender

liability,

the

Fund

could

be

held

liable

as

co-lender.

Lender

liability

is

based

on

the

premise

that

an

institutional

lender

or

a

bondholder

has

violated

a

duty

of

good

faith,

commercial

reasonableness

and

fair

dealing

owed

to

the

borrower

or

issuer,

and

thus

could

apply

to

the

Fund’s

investments

in

church

loans

whether

or

not

the

Borrower

is

an

obligor

of

the

Fund.

Additionally,

to

the

extent

that

certain

church

mortgage

loans

are

not

considered

“securities,”

investors,

such

as

the

Fund,

may

not

be

entitled

to

rely

on

the

anti-fraud

provisions

of

the

federal

securities

laws.

Uninsured

Loss Risk

—

 The

church

loans

in

which

the

Fund

will

invest

generally

require

the

Borrower

to

adequately

insure

the

property

securing

the

loan

against

liability

and

casualty

loss.

However,

certain

types

of

losses,

generally

those

of

a

catastrophic

nature

such

as

earthquakes,

floods

or

storms,

and

losses

due

to

civil

disobedience,

are

either

uninsurable

or

are

not

economically

insurable.

If

a

property

is

destroyed

by

an

uninsured

loss,

the

Fund

could

suffer

loss

of

all

or

a

substantial

part

of

its

investment.

Valuation

Risk

—

The

lack

of

an

active

trading

market

for

church

loans,

restrictions

on

transfers

in

some

church

mortgage

loan

agreements

and

trust

indentures,

a

lack

of

publicly

available

information,

and

other

factors

may

result

in

inherent

uncertainty

in

the

valuation

process

for

church

loans,

and

the

estimated

fair

values

may

differ

materially

from

the

values

estimated

by

another

party

or

the

values

that

would

have

been

used

had

a

ready

market

for

the

church

loans

existed.

To

the

extent

the

Fund

invests

in

church

loans,

the

Fund’s

calculated

NAV

may

not

accurately

reflect

the

value

that

could

be

obtained

for

any

church

loan

upon

sale.

If

market

quotations

for

a

church

loan

are

not

readily

available

or

do

not

accurately

reflect

fair

value,

the

value

of

the

church

loan

will

be

determined

in

good

faith

pursuant

to

fair

valuation

procedures

adopted

by

the

Fund’s

Board.

The

Board

has

delegated

the

responsibility

to

estimate

the

fair

value

of

church

loans

to

the

Adviser.

The

fair

valuation

of

church

loans

by

the

Adviser

could

result

in

a

conflict

of

interest

as

the

Adviser’s

advisory

fee

is

based

on

the

value

of

the

Fund’s

net

assets.

Variable

or

Floating

Interest

Rate Risk

—

Church

mortgage

loans

may

have

interest

rates

that

float

above,

or

are

adjusted

periodically

based

on,

a

benchmark

that

reflects

current

interest

rates.

Substantial

increases

in

interest

rates

may

cause

an

increase

in

loan

defaults

as

Borrowers

may

lack

resources

to

meet

higher

debt

service

requirements.

Increasing

interest

rates

may

hinder

a

Borrower’s

ability

to

refinance

church

mortgage

loans

because

the

underlying

property

cannot

satisfy

the

debt

service

coverage

requirements

necessary

to

obtain

new

financing

or

because

the

value

of

the

property

has

decreased.

Additionally,

certain

church

mortgage

loans

will

have

interest

rate

reviews

and

interest

rate

resets,

and

may

result

in

decreases

in

interest

rates.

Decreases

in

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2020

21

interest

rates

will

typically

cause

interest

rates

on

the

church

mortgage

loans

to

decrease,

thereby

reducing

income

to

the

Fund.

Closed-End,

Interval

Fund

Structure Risk

— The

Fund

is

a

non-diversified,

closed-end

management

investment

company

structured

as

an

“interval

fund”

and

designed

for

long-term

investors.

The

Fund

is

not

intended

to

be

a

typical

traded

investment.

Unlike

many

closed-end

investment

companies,

the

Fund’s

Shares

are

not

listed

on

any

national

securities

exchange

and

are

not

publicly

traded.

There

is

no

secondary

market

for

the

Shares,

and

the

Fund

does

not

expect

a

secondary

market

will

develop.

An

investor

should

not

invest

in

the

Fund

if

the

investor

needs

a

liquid

investment.

Closed-end

funds

differ

from

open-end

management

investment

companies,

commonly

known

as

“mutual

funds,”

in

that

investors

in

a

closed-end

fund

do

not

have

the

right

to

redeem

their

shares

on

a

daily

basis

at

a

price

based

on

NAV

per

share.

The

Fund,

as

a

fundamental

policy,

will

make

quarterly

offers

to

repurchase

at

least

5%

and

up

to

25%

of

its

outstanding

Shares

at

NAV

per

share,

subject

to

approval

of

the

Board. The

number

of

Shares

tendered

in

connection

with

a

repurchase

offer

may

exceed

the

number

of

Shares

the

Fund

has

offered

to

repurchase,

in

which

case

not

all

of

your

Shares

tendered

in

that

offer

will

be

repurchased.

Hence,

you

may

not

be

able

to

sell

your

Shares

when

and/or

in

the

amount

that

you

desire.

Credit Risk

— Credit

risk

is

the

risk

that

an

issuer

of

a

debt

security

to

which

the

Fund’s

portfolio

is

exposed

may

no

longer

be

able

or

willing

to

pay

its

debt.

As

a

result

of

such

an

event,

the

debt

security

may

decline

in

price

and

affect

the

value

of

the

Fund.

Cybersecurity Risk

— Successful

cyber-attacks

against,

or

security

breakdowns

of,

the

Fund

or

any

affiliated

or

third-party

service

provider

may

adversely

affect

the

Fund

or

its

Shareholders.

While

the

Fund

and

its

service

providers

have

established

business

continuity

plans

and

systems

designed

to

prevent

cyber-attacks,

there

are

inherent

limitations

in

such

plans

and

systems

including

the

possibility

that

certain

risks

have

not

been

identified.

Similar

types

of

cybersecurity

risks

also

are

present

for

issuers

of

securities

in

which

the

Fund

invests,

which

could

result

in

material

adverse

consequences

for

such

issuers,

and

may

cause

the

Fund’s

investment

in

such

securities

to

lose

value.

Defensive

Investing

Risk

— In

response

to

market,

economic,

political

or

other

conditions,

the

Fund

may

invest

without

limitation

in

cash

or

investment-grade

debt

securities

for

temporary

defensive

purposes

that

are

not

part

of

the

Fund’s

principal

investment

strategies.

If

the

Fund

does

this,

different

factors

could

affect

the

Fund’s

performance

and

it

may

not

achieve

its

investment

objective.

Duration

and

Maturity

Risk

— The

prices

of

debt

securities

are

also

affected

by

their

durations

and

maturities.

Duration

is

a

measure

used

to

determine

the

sensitivity

of

a

security’s

price

to

changes

in

interest

rates.

The

longer

a

security’s

duration,

the

more

sensitive

it

will

be

to

changes

in

interest

rates.

For

example,

if

a

bond

has

a

duration

of

four

years,

a

1%

increase

in

interest

rates

could

be

expected

to

result

in

a

4%

decrease

in

the

value

of

the

bond.

A

debt

security’s

maturity

is

typically

determined

on

a

stated

final

maturity

basis,

although

there

are

some

exceptions

to

this

rule.

Debt

securities

with

longer

maturities

generally

are

more

susceptible

to

changes

in

value

as

a

result

of

changes

in

interest

rates.

The

Fund

may

invest

in

debt

securities

of

any

duration

or

maturity.

Funding

Future

Capital

Needs Risk

—

 The

net

proceeds

from

purchases

of

Shares

may

be

used

for

the

Fund’s

investment

opportunities,

operating

expenses

and

for

payment

of

various

fees

and

expenses

such

as

the

advisory

fee.

Any

working

capital

reserves

the

Fund

maintains

may

not

be

sufficient

for

investment

purposes.

If

this

is

the

case,

the

Fund’s

ability

to

acquire

investments

and

to

expand

the

Fund’s

operations

will

be

adversely

affected.

Hedging

and

Derivatives Risk

— Derivatives,

a

category

that

includes

options,

futures

and

swaps,

are

financial

instruments

whose

value

derives

from

another

security,

an

index,

an

interest

rate

or

a

currency.

The

Fund

may

use

derivatives,

including

futures

and

swaps,

for

hedging

its

exposure

to

interest

rate

risk.

While

hedging

can

guard

against

potential

risks,

using

derivatives

adds

to

the

Fund’s

expenses

and

can

eliminate

some

opportunities

for

gains.

There

is

also

a

risk

that

a

derivative

intended

as

a

hedge

may

not

perform

as

expected.

Changes

in

the

value

of

the

derivative

may

not

correlate

as

intended

with

the

underlying

interest

rate,

and

the

Fund

could

lose

much

more

than

the

original

amount

invested.

Derivatives

can

be

volatile,

illiquid

and

difficult

to

value.

Derivatives

are

also

subject

to

the

risk

that

the

other

party

in

the

transaction

will

not

fulfill

its

contractual

obligations. 

Interest

Rate Risk

— Interest

rate

risk

is

the

risk

that

prices

of

debt

securities

decline

in

value

when

interest

rates

rise

for

debt

securities

that

pay

a

fixed

rate

of

interest.

Debt

securities

with

longer

durations

or

maturities

tend

to

be

more

sensitive

to

changes

in

interest

rates

than

those

with

shorter

durations

or

maturities.

Changes

by

the

Federal

Reserve

to

monetary

policies

could

affect

interest

rates

and

the

value

of

some

securities.

Debt

securities

in

which

the

Fund

may

invest

will

have

varying

maturities,

which

may

be

as

long

as

30

years.

If

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2020

22

interest

rates

rise

generally,

rates

of

return

on

debt

securities

held

by

the

Fund

may

become

less

attractive

and

the

value

of

debt

securities

held

by

the

Fund

and

the

Fund’s

Shares,

may

decline.

This

risk

tends

to

increase

the

longer

the

term

of

the

debt

security.

Investment

Adviser Risk

— The

Fund

is

actively

managed

and

the

success

of

its

investment

strategy

depends

significantly

on

the

skills

of

the

Adviser

in

assessing

the

potential

of

the

investments

in

which

the

Fund

invests.

This

assessment

of

investments

may

prove

incorrect,

resulting

in

losses

or

poor

performance,

even

in

rising

markets.

Limited

Distribution Risk

— If

the

Distributor

fails

to

market

the

Fund

and

establish

and

maintain

a

network

of

selected

broker-dealers

to

sell

the

Shares,

the

Fund

may

not

be

able

to

raise

adequate

proceeds

through

the

Fund’s

continuous

public

offering

to

implement

the

Fund’s

investment

objective

and

strategies.

Liquidity

Risk

— If

there

is

decreased

liquidity

in

the

markets,

the

Adviser

may

have

to

accept

a

lower

price

to

sell

a

security,

sell

other

securities

to

raise

cash,

or

give

up

an

investment

opportunity,

any

of

which

could

have

a

negative

effect

on

performance.

Mortgage-Backed

Securities Risk

— The

Fund

may

invest

in

mortgage-backed

securities

issued

or

guaranteed

by

the

U.S.

government

or

its

agencies

and

instrumentalities

(such

as

securities

issued

by

the

Government

National

Mortgage

Association

(“Ginnie

Mae”),

the

Federal

National

Mortgage

Association

(“Fannie

Mae”),

or

the

Federal

Home

Loan

Mortgage

Corporation

(“Freddie

Mac”)).

U.S.

government

mortgage-backed

securities

are

subject

to

market

risk,

interest

rate

risk

and

credit

risk.

Mortgage-backed

securities,

such

as

those

issued

or

guaranteed

by

Ginnie

Mae

or

the

U.S.

Treasury,

that

are

backed

by

the

full

faith

and

credit

of

the

United

States

are

guaranteed

only

as

to

the

timely

payment

of

interest

and

principal

when

held

to

maturity

and

the

market

prices

for

such

securities

will

fluctuate.

Notwithstanding

that

these

securities

are

backed

by

the

full

faith

and

credit

of

the

United

States,

circumstances

could

arise

that

would

prevent

the

payment

of

interest

or

principal.

This

would

result

in

losses

to

the

Fund.

Securities

issued

or

guaranteed

by

U.S.

government-related

organizations,

such

as

Fannie

Mae

and

Freddie

Mac,

are

not

backed

by

the

full

faith

and

credit

of

the

U.S.

government

and

no

assurance

can

be

given

that

the

U.S.

government

will

provide

financial

support.

Therefore,

U.S.

government-related

organizations

may

not

have

the

funds

to

meet

their

payment

obligations

in

the

future.

Mortgage-backed

securities

are

sensitive

to

changes

in

the

repayment

patterns

of

the

underlying

security.

If

the

principal

payment

on

the

underlying

asset

is

repaid

faster

or

slower

than

the

holder

of

the

mortgage-backed

security

anticipates,

the

price

of

the

security

may

fall,

particularly

if

the

holder

must

reinvest

the

repaid

principal

at

lower

rates

or

must

continue

to

hold

the

security

when

interest

rates

rise.

This

effect

may

cause

the

value

of

the

Fund

to

decline

and

reduce

the

overall

return

of

the

Fund.

Mortgage-backed

securities

are

also

subject

to

the

risk

of

delinquencies

on

mortgage

loans

underlying

such

securities.

An

unexpectedly

high

rate

of

defaults

on

the

mortgages

held

by

a

mortgage

pool

may

adversely

affect

the

value

of

a

mortgage-backed

security

and

could

result

in

losses

to

the

Fund.

The

Fund

may

enter

into

dollar

rolls

on

mortgage-backed

securities

to

maintain

liquid

assets

in

connection

with

its

repurchase

offers

or

to

meet

repurchase

requests.

Dollar

rolls

on

mortgage-backed

securities

involve

the

risk

that

the

market

value

of

the

securities

subject

to

the

Fund’s

forward

purchase

commitment

may

decline

below,

or

the

market

value

of

the

mortgage-backed

securities

subject

to

the

Fund’s

forward

sale

commitment

may

increase

above,

the

exercise

price

of

the

forward

commitment.

Non-Diversification Risk

—

Since

the

Fund

is

non-diversified,

it

may

invest

a

high

percentage

of

its

assets

in

a

limited

number

of

issuers.

When

the

Fund

invests

in

a

relatively

small

number

of

issuers

it

may

be

more

susceptible

to

risks

associated

with

a

single

economic,

political

or

regulatory

occurrence

than

a

more

diversified

portfolio

might

be.

Since

the

Fund

is

non-diversified,

its

NAV

per

share

and

total

return

may

also

fluctuate

more

or

be

subject

to

declines

in

weaker

markets

than

a

diversified

fund.

Reinvestment

Risk

— Income

from

the

Fund’s

portfolio

will

decline

if

and

when

the

Fund

invests

the

proceeds

from

matured,

traded

or

called

debt

obligations

at

market

interest

rates

that

are

below

the

portfolio’s

current

earnings

rate.

Repurchase

Offers Risk

—

The

Fund

is

a

closed-end

investment

company

structured

as

an

“interval

fund”

and

is

designed

for

long-term

investors.

There

is

no

secondary

market

for

the

Shares

and

the

Fund

expects

that

no

secondary

market

will

develop.

In

order

to

provide

liquidity

to

Shareholders,

the

Fund,

subject

to

applicable

law,

conducts

quarterly

repurchase

offers

of

its

outstanding

Shares

at

NAV

per

share,

subject

to

approval

of

the

Board.

In

all

cases,

such

repurchase

offers

will

be

for

at

least

5%

and

not

more

than

25%

of

its

outstanding

Shares,

at

NAV

per

share,

pursuant

to

Rule

23c-3

under

the

1940

Act.

Repurchases

generally

will

be

funded

from

available

cash

or

sales

of

portfolio

securities.

However,

if

at

any

time

cash

and

other

liquid

assets

held

by

the

Fund

are

not

sufficient

to

meet

the

Fund's

repurchase

obligations,

the

Fund

may,

if

necessary,

sell

investments.  The

sale

of

securities

to

fund

repurchases

could

reduce

the

market

price

of

those

securities,

which

in

turn

would

reduce

the

Fund’s

NAV

per

share.

The

Fund

is

also

permitted

to

borrow

up

to

the

maximum

extent

permitted

under

the

1940

Act

to

meet

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2020

23

such

repurchase

obligations.

The

Fund

does

not

currently

intend

to

borrow

to

finance

repurchases,

although

it

may

invest

in

dollar

rolls.

Moreover,

a

reduction

in

the

size

of

the

Fund

through

repurchases

may

result

in

untimely

sales

of

portfolio

securities,

may

increase

the

Fund’s

portfolio

turnover,

and

may

limit

the

ability

of

the

Fund

to

participate

in

new

investment

opportunities

or

to

achieve

its

investment

objective.

If

a

repurchase

offer

is

oversubscribed,

the

Fund

will

repurchase

the

Shares

tendered

on

a

pro

rata

basis,

and

Shareholders

will

have

to

wait

until

the

next

repurchase

offer

to

make

another

repurchase

request.

As

a

result,

Shareholders

may

be

unable

to

liquidate

all

or

a

given

percentage

of

their

investment

in

the

Fund

during

a

particular

repurchase

offer.

A

Shareholder

may

be

subject

to

market

and

other

risks,

and

the

NAV

per

share

of

Shares

tendered

in

a

repurchase

offer

may

decline

between

the

Repurchase

Request

Deadline

and

the

date

on

which

the

NAV

per

share

for

tendered

Shares

is

determined.

In

addition,

to

the

extent

the

Fund

sells

portfolio

holdings

in

order

to

fund

repurchase

requests,

the

repurchase

of

Shares

by

the

Fund

will

be

a

taxable

event

for

the

Shareholders

of

repurchased

Shares,

and

potentially

even

for

Shareholders

that

do

not

participate

in

the

repurchase

offer.

Regulatory

Changes

and

Regulatory

Actions

Risk 

—

Legal,

tax

and

regulatory

changes

could

occur

and

may

adversely

affect

the

Fund

and

its

ability

to

pursue

its

investment

strategies

and/or

increase

costs

of

implementing

such

strategies. 

Any

adverse

regulatory

action

could

impact

the

prices

of

the

securities

the

Fund

owns. 

Related

Restrictions on

Entering

into

Affiliated

Transactions  Risk

—

The

Fund

is

permitted

to

co-invest

with

Affiliated

Accounts

in

church

loan

transactions

subject

to

the

conditions

of

the

Co-Investment

Order,

applicable

regulatory

limitations,

the

allocation

policies

of

the

Adviser

and

its

affiliates,

as

applicable,

and

approval

of

the

Trustees

as

required

in

the

Co-Investment

Order.

Currently,

the

only

Affiliated

Account

is

Thrivent

Financial’s

proprietary

account.

The

Fund

can

offer

no

assurance,

however,

that

it

will

be

able

to

obtain

such

approvals

or

develop

or

access

opportunities

that

comply

with

such

limitations.

The

Fund’s

co-investments

transactions

may

give

rise

to

conflicts

of

interest

or

perceived

conflicts

of

interest

between

the

Fund

and

Thrivent

Financial.

See

“Management

of

the

Fund

–

Conflicts

of

Interest”

for

more

information.

Notwithstanding

certain

co-investment

transactions

permitted

under

the

Co-Investment

Order

referenced

above,

entering

into

certain

transactions

that

are

deemed

“joint”

transactions

(for

purposes

of

the

1940

Act

and

relevant

guidance

from

the

SEC)

may

potentially

lead

to

impermissible

joint

transactions

within

the

meaning

of

the

1940

Act

in

the

future.

To

avoid

the

potential

of

future

joint

transactions,

the

Adviser

may

seek

to

avoid

allocating

an

investment

opportunity

to

the

Fund

that

it

would

otherwise

allocate,

subject

to

the

Adviser’s

and

its

affiliates’

then-current

allocation

policies

and

any

applicable

exemptive

orders

(including

the

Co-

Investment

Order),

and

to

the

Adviser’s

obligations

to

allocate

opportunities

in

a

fair

and

equitable

manner.

Tax Risk

and

RIC-Related

Risks

of

Investments

Generating

Non-Cash

Taxable

Income 

—

The

Fund

has

elected

to

be

a

“regulated

investment

company”

under

the

Internal

Revenue

Code

of

1986,

as

amended

(“Code”)

(“RIC”)

and

intends

to

qualify

each

taxable

year

to

be

treated

as

such.

In

order

to

qualify

for

such

treatment,

the

Fund

must

meet

certain

asset

diversification

tests,

derive

at

least

90%

of

its

gross

income

for

its

taxable

year

from

certain

types

of

“qualifying

income,”

and

distribute

to

its

Shareholders

at

least

the

sum

of

90%

of

its

“investment

company

taxable

income,”

as

that

term

is

defined

in

the

Code

(which

include,

among

other

things,

dividends,

interest

and

the

excess

of

any

net

short-term

capital

gains

over

net

long-term

capital

losses,

as

reduced

by

certain

deductible

expenses)

and

90%

of

its

net

exempt

interest

income,

if

any.

The

Fund's

investment

strategy

will

potentially

be

limited

by

its

intention

to

annually

qualify

for

treatment

as

a

RIC.

An

adverse

determination

or

future

guidance

by

the

IRS

might

affect

the

Fund’s

ability

to

qualify

for

such

treatment

and

result

in

adverse

tax

consequences

for

the

Fund

and

Shareholders.

Thrivent

Church

Loan

and

Income

Fund

Financial

Highlights

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

statement.

25

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

CHURCH

LOAN

AND

INCOME

FUND

Class

S

Shares

Year

Ended

3/31/2020

$

10.25

$

0.33

$

0.39

$

0.72

$

(0.35)

$

(0.01)

Year

Ended

3/31/2019

(c)

10.00

0.14

0.31

0.45

(0.20)

–

(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

fund

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

fund

inception,

September

28,

2018.

*

All

per

share

amounts

have

been

rounded

to

the

nearest

cent.

**

Computed

on

an

annualized

basis

for

periods

less

than

one

year.

Thrivent

Church

Loan

and

Income

Fund

Financial

Highlights

–

continued

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

statement.

26

RATIOS/SUPPLEMENTAL

DATA

Ratio

to

Average

Net

Assets

**

Ratios

to

Average

Net

Assets

Before

Expenses

Waived,

Credited

or

Acquired

Fund

Fees

and

Expenses

**

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

$

(0.36)

$

10.61

7.11%

$

27.4

1.32%

2.71%

5.20%

(1.17)%

447%

(0.20)

10.25

4.53%

10.8

1.50%

2.82%

12.57%

(8.25)%

330%

27

Board

of

Trustees

and

Officers

The

Board

is

responsible

for

the

management

and

supervision

of

the

Fund’s

business

affairs

and

for

exercising

all

powers

except

those

reserved

to

the

shareholders.

The

following

table

provides

information

about

the

Trustees

and

officers

of

the

Fund.

Unless

otherwise

noted,

the

address

for

the

Trustees

and

officers

of

the

Fund

is

901

Marquette

Avenue,

Suite

2500,

Minneapolis,

Minnesota

55402-3265.

The

Fund’s

Statement

of

Additional

Information

includes

additional

information

about

the

Trustees

and

is

available,

without

charge,

by

writing

to

Thrivent

Church

Loan

and

Income

Fund,

901

Marquette

Avenue,

Suite

2500,

Minneapolis,

Minnesota

55402-3265,

calling

800-847-4836,

or

visiting

the

Fund’s

website

(ThriventIntervalFunds.com).

Interested

Trustee

(1)(2)(3)

Name

(Year

of

Birth)

Year

Elected

Principal

Occupation(s)

and

Directorships

of

Public

Companies

and

Other

Investment

Companies

During

the

Past

Five

Years

David

S.

Royal

(1971)

2018

Senior

Vice

President,

Chief

Investment

Officer,

Thrivent

Financial

since

2017;

VP,

President

Mutual

Funds,

Thrivent

Financial

from

2015

to

2017;

Vice

President

and

Deputy

General

Counsel,

Thrivent

Financial

from

2006

to

2015.

Currently,

Director

of

Children's

Cancer

Research

Fund

and

Board

member

of

Twin

Bridge

Capital

Partners;

Director

of

Fairview

Hospital

Foundation

until

2017.

Independent

Trustees

(2)(3)(4)

Name

(Year

of

Birth)

Year

Elected

Principal

Occupation(s)

and

Directorships

of

Public

Companies

and

Other

Investment

Companies

During

the

Past

Five

Years

Julie

K.

Braun

(1958)

2019

Partner

and

Chief

Operating

Officer

of

Castlelake

,

LP

from

2005

to

2016;

Director

and

Audit

Committee

Chair

at

Pohlad

Companies

since

2019;

Director

of

various

closely-held

investment

partnerships

and

LLCs

of

Castlelake

,

LP.

Pastor

Brian

Fragodt

(1959)

2018

Senior

Pastor,

Trinity

Lutheran

Church

since

2012,

Long

Lake,

MN.

Trustee,

Gustavus

Adolphus

College

from

2012

to

2015.

Jerry

T.

Golden

(1953)

2018

National

Seminar

Instructor,

Ernst

&

Young

Financial

Services

Program

from

2014

to

2015.

Independent

Trustee

of

Scout

Funds

from

2015

to

2017.

Cecilia

H.

Herbert

(1949)

2019

Trustee

of

Stanford

Health

Care

since

2016

and

Finance

Committee

Chair

since

2019;

Trustee

of

WNET,

a

New

York

public

media

company,

since

2011;

Member

of

the

Archdiocese

of

San

Francisco

Finance

Council

since

1994.

Independent

Director/Trustee

of

iShares

ETF

Funds

since

2005

and

Board

Chair

since

2015;

Independent

Trustee  and

Nominating

Committee

Chair

of

Forward

Funds

from

2009

to

2015;

Independent

Trustee

and

Nominating

Committee

Chair

of

Salient

MF

Trust

and

Salient

FF

Trust

from

2015

to

2018.

George

W.

Morriss

(1947)

2018

Adjunct

Professor,

Columbia

University

School

of

International

Policy

and

Affairs

from

2012

to

2018.

Independent

Director/Trustee

of

Neuberger

Berman

Mutual

Funds

since

2007,

Closed

End

Fund

Committee

Chair

since

2018,

and

Audit

Committee

Chair

from

2010

to

2017;

Independent

Trustee

and

Audit

Committee

Chair,

1WS

Credit

Income

Fund

since

2018;

Independent

Trustee

and

Audit

Committee

Chair

of

Steben

Select

Multi-Strategy

and

Steben

Alternative

Investment

Funds

from

2013

to

2017.

28

Board

of

Trustees

and

Officers

Executive

Officers

(2)

Name

(Year

of

Birth)

Position

Held

With

Trust

Principal

Occupation(s)

During

the

Past

Five

Years

David

S.

Royal

(1971)

Trustee

and

President

Senior

Vice

President,

Chief

Investment

Officer,

Thrivent

Financial

since

2017;

VP,

President,

Mutual

Funds,

Thrivent

Financial

from

2015

to

2017;

Vice

President

and

Deputy

General

Counsel,

Thrivent

Financial

from

2006

to

2015.

Gerard

V.

Vaillancourt

(1967)

Treasurer

and

Principal

Accounting

Officer

Vice

President

and

Mutual

Funds

Chief

Financial

Officer,

Thrivent

Financial

since

2017;

Vice

President,

Mutual

Fund

Accounting,

Thrivent

Financial

from

2006

to

2017.

Michael

W.

Kremenak

(1978)

Secretary

and

Chief

Legal

Officer

Vice

President,

Thrivent

Financial

since

2015;

Senior

Counsel,

Thrivent

Financial

from

2013

to

2015.

Edward

S.

Dryden

(1965)

Chief

Compliance

Officer

Vice

President,

Chief

Compliance

Officer

—

Thrivent

Funds,

Thrivent

Financial

since

2018;

Director,

Chief

Compliance

Officer

—

Thrivent

Funds,

Thrivent

Financial

from

2010

to

2018.

Kathleen

M.

Koelling

(1977)

Privacy

Officer

(5)

Vice

President,

Deputy

General

Counsel,

Thrivent

Financial

since

2018;

Vice

President,

Managing

Counsel,

Thrivent

Financial

from

2016

to

2018;

Privacy

Officer,

Thrivent

Financial

since

2011;

Anti-Money

Laundering

Officer,

Thrivent

Financial

from

2011

to

2019;

Senior

Counsel,

Thrivent

Financial

from

2002

to

2016.

Troy

A.

Beaver

(1967)

Vice

President

Vice

President,

Mutual

Funds

Marketing

&

Distribution,

Thrivent

Financial

since

2015;

Vice

President,

Marketing,

American

Century

Investments

from

2006

to

2015.

Monica

L

Kleve

(1969)

Vice

President

Vice

President,

Investment

Operations,

Thrivent

Financial

since

2019;

Director,

Investments

Systems

and

Solutions,

Thrivent

Financial

from

2002

to

2019.

Kathryn

A.

Stelter

(1962)

Vice

President

Vice

President,

Mutual

Funds

Chief

Operations

Officer,

Thrivent

Financial

since

2017;

Director,

Mutual

Fund

Operations,

Thrivent

Financial

from

2014

to

2017.

Jill

M.

Forte

(1974)

Assistant

Secretary

Senior

Counsel,

Thrivent

Financial

since

2017;

Counsel,

Thrivent

Financial

from

2015

to

2017;

Associate

Counsel,

Ameriprise

Financial,

Inc.

from

2013

to

2015.

John

D.

Jackson

(1977)

Assistant

Secretary

Senior

Counsel,

Thrivent

Financial

since

2017;

Associate

General

Counsel,

RBC

Global

Asset

Management

(US)

Inc.

from

2011

to

2017.

Sarah

L.

Bergstrom

(1977)

Assistant

Treasurer

Head

of

Mutual

Fund

Accounting,

Thrivent

Financial

since

2017;

Director,

Fund

Accounting

Administration,

Thrivent

Financial

from

2007

to

2017.

(1)

“Interested

person”

of

the

Fund

as

defined

in

the

1940

Act

by

virtue

of

a

position

with

Thrivent

Financial.

Mr.

Royal

is

considered

an

interested

person

because

of

his

principal

occupation

with

Thrivent

Financial.

(2)

Each

Trustee

generally

serves

an

indefinite

term

until

her

or

his

successor

is

duly

elected

and

qualified.

Officers

generally

serve

at

the

discretion

of

the

Board

until

their

successors

are

duly

appointed

and

qualified.

(3)

The

Fund

is

part

of

a

“Fund

Complex,”

which

is

comprised

of

the

Fund,

Thrivent

Mutual

Funds,

Thrivent

Series

Fund,

Inc.,

Thrivent

Cash

Management

Trust,

and

Thrivent

Core

Funds.

Each

Trustee,

other

than

Mr.

Royal,

oversees

1

portfolio

in

the

Fund

Complex.

Mr.

Royal

oversees

61

portfolios.

(4)

The

Trustees,

other

than

Mr.

Royal,

are

not

“interested

persons”

(as

defined

under

the

1940

Act)

of

the

Fund

and

are

referred

to

as

“Independent

Trustees".

(5)

The

address

for

this

Officer

is

4321

North

Ballard

Road,

Appleton,

WI.

23459SAR

R5-20

4321

North

Ballard

Road,

Appleton,

WI

54919-0001

Thrivent

Interval

Funds

is

the

marketing

name

for

Thrivent

Church

Loan

and

Income

Fund.

The

principal

underwriter

for

the

Thrivent

Church

Loan

and

Income

Fund

is

Thrivent

Distributors,

LLC,

a

registered

broker/dealer,

member

of

FINRA

and

SIPC,

and

a

subsidiary

of

Thrivent

Financial,

the

marketing

name

for

Thrivent

Financial

for

Lutherans.

We’re

listening

to

you!

In

response

to

concerns

regarding

multiple

mailings,

we

send

one

copy

of

a

shareholder

report

and

one

copy

of

a

prospectus

for

Thrivent

Interval

Funds

to

each

household.

This

process

is

known

as

householding.

This

consolidation

helps

reduce

printing

and

postage

costs,

thereby

saving

money.

If

you

purchased

shares

of

Thrivent

Interval

Funds

through

Thrivent

Financial:

If

you

wish

to

revoke

householding

in

the

future,

you

may

write

to

us

at

4321

North

Ballard

Road,

Appleton,

WI,

54919-0001,

or

call

us

at

800-847-4836

.

We

will

begin

to

mail

separate

regulatory

mailings

within

30

days

of

receiving

your

request.

If

you

wish

to

receive

an

additional

copy

of

this

shareholder

report,

or

a

prospectus

for

Thrivent

Church

Loan

and

Income

Fund,

call

us

at

800-847-4836

.

These

documents

are

also

available

by

visiting

ThriventIntervalFunds.com

.

If

you

purchased

shares

of

Thrivent

Interval

Funds

from

a

firm

other

than

Thrivent

Financial:

If

you

wish

to

revoke

householding

in

the

future,

or

to

receive

an

additional

copy

of

this

shareholder

report

or

a

prospectus

for

Thrivent

Church

Loan

and

Income

Fund,

please

contact

your

financial

professional.

This

shareholder

report

is

also

available

by

visiting

ThriventIntervalFunds.com

.