UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-21622
Thrivent Financial Securities Lending Trust
(Exact name of registrant as specified in charter)
625 Fourth Avenue South
Minneapolis, Minnesota 55415
(Address of principal executive offices) (Zip code)
James E. Nelson, Secretary
625 Fourth Avenue South
Minneapolis, Minnesota 55415
(Name and address of agent for service)
Registrant's telephone number, including area code: (612) 340-7215
Date of fiscal year end: October 31
Date of reporting period: October 31, 2004
Item 1. Report to Stockholders
- ------------------------------
ANNUAL REPORT
OCTOBER 31, 2004
THRIVENT FINANCIAL
SECURITIES LENDING TRUST
THRIVENT FINANCIAL SECURITIES LENDING TRUST
William D. Stouten, Portfolio Manager
The Trust seeks to maximize current income to the extent consistent with
the preservation of capital and liquidity; and maintain a stable $1.00 per
share net asset value by investing in dollar-denominated securities with
remaining maturity of one year or less.
Since the Trust's commencement of operations on Sept. 16, 2004, the Federal
Open Market Committee has continued its tightening pattern of raising the
federal funds rate. In anticipation of these moves, we maintained a
weighted-average maturity of approximately 35 days, allowing us to react
quickly and capture incremental yield when possible. With additional
incremental Fed hikes likely to occur in the coming months, we believe this
will benefit the kinds of money market instruments held by the Trust. Given
this near-term environment, we'll continue to manage for liquidity and
conservative yield improvement.
[GRAPHIC PIE CHART OMITTED: PORTFOLIO COMPOSITION (% OF PORTFOLIO)]
Portfolio Composition
(% of Portfolio)
Short Term Investments 100%
THRIVENT FINANCIAL SECURITIES LENDING TRUST FUND
AS OF OCTOBER 31, 2004*
7-Day Yield 1.82%
7-Day Effective Yield 1.83%
AVERAGE ANNUAL TOTAL RETURNS**
For the Period from September 16, 2004
(commencement of operation) to October 31, 2004
Without sales charge 1.81%
With sales charge 1.81%
* Seven-day yields of the Thrivent Financial Securities Lending Trust
refer to the income generated by an investment in the Trust over a
specified seven-day period. Effective yields reflect the reinvestment
of income. Yields are subject to daily fluctuation and should be
considered an indication of future results.
** Past performance is not an indication of future results. Annualized
total returns represent past performance and reflect changes in share
prices, the reinvestment of all dividends and capital gains, and the
effects of compounding. Investing in a mutual fund involves risks,
including the possible loss of principal. The prospectus contains more
complete information on the investment objectives, risks, charges and
expenses of the investment company which investors should read and
consider carefully before investing. To obtain a prospectus, contact a
registered representative or visit www.thrivent.com. The returns shown
do not reflect taxes a shareholder would pay on distributions or
redemptions.
Shareholder Expense Example
(Unaudited)
As a shareholder of the Trust, you incur ongoing cost, including management
fees and other Trust expenses. This Example is intended to help you
understand your ongoing costs (in dollars) of investing in the Trust and to
compare these costs with the ongoing costs of investing in other mutual
funds. The Example is based on an investment of $1,000 invested at the
beginning of the period and held for the entire period from September 16,
2004 (inception) through October 31, 2004.
Actual Expenses
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line,
together with the amount you invested, to estimate the expenses that you
paid over the period. Simply divide your account value by $1,000 (for
example, an $8,600 account value divided by $1,000 = 8.6), then multiply
the result by the number in the first line under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Trust's actual
expense ratio and an assumed rate of return of 5% per year before expenses,
which is not the Trust's actual return. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare
the ongoing costs of investing in the Trust and other funds.
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges (loads), redemption fees, or exchange fees. Therefore, the
second line of the table is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different
funds. In addition, if these transactional costs were included, your costs
would have been higher.
Beginning Ending Expenses
Account Account Paid During Annualized
Value Value Period* Expense
9/16/2004 10/31/2004 9/16/2004 - 10/31/2004 Ratio
Thrivent Financial Securities Lending Trust
Actual $ 1,000 $ 1,002 $ 0.06 0.05%
Hypothetical ** $ 1,000 $ 1,006 $ 0.06 0.05%
* Expenses are equal to the Trust's annualized expense ratio, multiplied by
the average account value over the period, multiplied by 45/365 to
reflect the number of days in the period.
** Assuming 5% total return before expenses
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
[LOGO OMITTED]
PricewaterhouseCoopers LLP
Suite 1500
100 E. Wisconsin Ave.
Milwaukee WI 53202
Telephone (414) 212 1600
To the Shareholders and Trustees of Thrivent Financial Securities Lending
Trust:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Thrivent Financial Securities Lending Trust (the "Trust") at October 31,
2004 and the results of its operations, changes in its net assets and the
financial highlights for the period September 16, 2004 (commencement of
operations) through October 31, 2004, in conformity with accounting
principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Trust's management;
our responsibility is to express an opinion on these financial statements
based on our audit. We conducted our audit of these financial statements
in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audit, which
included confirmation of securities at October 31, 2004 by correspondence
with the custodian, provide a reasonable basis for our opinion.
/S/ PricewaterhouseCoopers LLP
December 16, 2004
SCHEDULE OF INVESTMENTS
AS OF OCTOBER 31, 2004
Thrivent Financial Securities Lending Trust (a)
<CAPTON>
- ------------------------------------------------------------------------------------------------------------
Principal Interest Maturity Market
Amount Short-Term Investments (100.0%) Rate (b) Date Value
- ------------------------------------------------------------------------------------------------------------
$15,000,000 Acts Retirement - Life Communities, Inc. 1.85% 12/1/2004 $14,976,875
50,000,000 AIG Funding, Inc. 1.77% 11/8/2004 49,982,792
21,000,000 Alcon Capital Corporation 1.87% 12/2/2004 20,966,184
15,000,000 American Family Financial Services, Inc. 2.08% 3/4/2005 14,893,400
40,000,000 American General Finance Corporation 1.77% 11/5/2004 39,992,133
30,000,000 American General Finance Corporation 1.78% 11/8/2004 29,989,617
23,000,000 Amsterdam Funding Corporation 1.84% 11/23/2004 22,974,138
25,000,000 Amsterdam Funding Corporation 1.87% 11/24/2004 24,970,132
25,000,000 Amsterdam Funding Corporation 1.87% 12/6/2004 24,954,549
20,000,000 Aquinas Funding, LLC 2.00% 1/12/2005 19,920,000
10,000,000 Bank One NA (c) 1.93% 11/15/2004 10,019,372
20,000,000 Barclays U.S. Funding, LLC 1.93% 12/22/2004 19,945,458
10,561,000 Barton Capital Corporation 1.78% 11/4/2004 10,559,433
25,000,000 Barton Capital Corporation 1.79% 11/9/2004 24,990,056
25,000,000 Barton Capital Corporation 1.80% 11/15/2004 24,982,500
50,343,000 Barton Capital Corporation 1.79% 11/16/2004 50,305,557
15,700,000 Baystate Health Systems 1.85% 12/16/2004 15,663,694
4,750,000 Blue Spice, LLC 1.79% 11/10/2004 4,747,874
7,000,000 Ciesco, LLC 1.90% 11/29/2004 6,989,656
30,000,000 Ciesco, LLC 1.91% 12/6/2004 29,944,292
30,000,000 Citicorp 1.76% 11/2/2004 29,998,533
35,000,000 Citicorp 1.92% 12/9/2004 34,929,489
25,000,000 Citigroup, Inc. (c) 1.83% 12/1/2004 25,013,315
29,434,000 Corporate Asset Finance Company, LLC 1.77% 11/10/2004 29,420,975
25,000,000 Corporate Asset Finance Company, LLC 1.94% 12/10/2004 24,947,458
25,000,000 Corporate Receivables Corporation 1.80% 11/8/2004 24,991,250
Funding, LLC
30,000,000 Corporate Receivables Corporation 1.80% 11/30/2004 29,956,500
Funding, LLC
8,000,000 Corporate Receivables Corporation 2.02% 12/3/2004 7,986,631
Funding, LLC
30,000,000 Corporate Receivables Corporation 1.88% 12/14/2004 29,932,633
Funding, LLC
20,000,000 Credit Suisse First Boston, Inc. (c) 1.76% 11/26/2004 20,002,567
50,000,000 Credit Suisse First Boston, Inc. 1.84% 11/30/2004 49,925,889
50,000,000 CXC, LLC 1.83% 12/14/2004 49,890,708
30,000,000 CXC, LLC 1.99% 1/10/2005 29,883,917
30,000,000 Delaware Funding Company, LLC 1.78% 11/3/2004 29,997,033
25,000,000 Delaware Funding Company, LLC 1.90% 11/29/2004 24,963,056
50,000,000 Dexia Delaware, LLC 1.78% 11/4/2004 49,992,604
10,722,000 Dexia Delaware, LLC 1.88% 11/26/2004 10,708,002
25,000,000 Dexia Delaware, LLC 1.92% 12/31/2004 24,920,208
9,400,000 Duke University 1.86% 12/1/2004 9,385,430
17,000,000 Edison Asset Securitization, LLC 1.85% 12/3/2004 16,972,044
25,000,000 Edison Asset Securitization, LLC 2.02% 2/4/2005 24,866,736
20,000,000 Edison Asset Securitization, LLC 2.00% 3/21/2005 19,844,444
25,000,000 Falcon Asset Securitization Corporation 1.78% 11/1/2004 25,000,000
12,038,000 Falcon Asset Securitization Corporation 1.90% 11/19/2004 12,026,564
16,400,000 Falcon Asset Securitization Corporation 1.90% 11/29/2004 16,375,764
20,000,000 Falcon Asset Securitization Corporation 1.82% 12/15/2004 19,955,511
4,400,000 Federal Home Loan Bank Zero Coupon 11/10/2004 4,398,086
6,000,000 Federal Home Loan Bank 2.00% 11/15/2004 6,000,134
13,700,000 Federal Home Loan Bank (c) 1.79% 11/16/2004 13,695,084
32,585,000 Federal Home Loan Bank (c) 1.97% 12/15/2004 32,582,561
20,000,000 Federal Home Loan Bank (c) 1.84% 12/21/2004 19,997,327
9,000,000 Federal Home Loan Bank 1.50% 8/26/2005 8,936,992
13,000,000 Federal Home Loan Bank 2.50% 11/2/2005 13,000,000
25,322,000 Federal Home Loan Bank Zero Coupon 11/12/2004 25,308,537
Discount Notes
14,900,000 Federal Home Loan Mortgage Zero Coupon 11/8/2004 14,894,901
Corporation
40,910,000 Federal Home Loan Mortgage Zero Coupon 11/9/2004 40,894,153
Corporation
41,335,000 Federal Home Loan Mortgage Zero Coupon 12/7/2004 41,260,170
Corporation
20,000,000 Federal Home Loan Mortgage Zero Coupon 12/14/2004 19,957,239
Corporation
25,000,000 Federal Home Loan Mortgage Zero Coupon 3/15/2005 24,817,611
Corporation
25,000,000 Federal Home Loan Mortgage Zero Coupon 4/25/2005 24,760,590
Corporation
25,000,000 Federal Home Loan Mortgage Zero Coupon 5/2/2005 24,747,222
Corporation
25,000,000 Federal Home Loan Mortgage Zero Coupon 5/16/2005 24,722,333
Corporation
23,000,000 Federal Home Loan Mortgage Zero Coupon 8/5/2005 22,622,164
Corporation
30,000,000 Federal Home Loan Mortgage Zero Coupon 12/1/2004 29,953,750
Corporation Discount Notes
5,206,000 Federal National Mortgage Zero Coupon 11/1/2004 5,206,000
Association
30,000,000 Federal National Mortgage Zero Coupon 11/12/2004 29,983,958
Association
25,000,000 Federal National Mortgage Zero Coupon 11/23/2004 24,972,500
Association
5,044,000 Federal National Mortgage Zero Coupon 12/8/2004 5,034,565
Association
57,000,000 Federal National Mortgage Zero Coupon 12/15/2004 56,873,759
Association (d)
25,000,000 Federal National Mortgage 1.96% 1/21/2005 24,982,818
Association (c)
7,000,000 Federal National Mortgage Zero Coupon 11/10/2004 6,996,955
Association Discount Notes
25,000,000 Federal National Mortgage Zero Coupon 11/19/2004 24,977,500
Association Discount Notes
25,000,000 Federal National Mortgage Zero Coupon 11/22/2004 24,973,312
Association Discount Notes
25,000,000 Federal National Mortgage Zero Coupon 12/31/2004 24,920,833
Association Discount Notes
21,431,000 Federal National Mortgage Zero Coupon 4/29/2005 21,216,815
Association Discount Notes
50,000,000 Fifth Third Bancorp (c,e) 1.89% 11/23/2004 50,000,000
30,000,000 Fountain Square Commercial Funding 1.85% 11/19/2004 29,972,325
Corporation
25,000,000 Fountain Square Commercial Funding 1.87% 11/23/2004 24,971,431
Corporation
30,000,000 Galaxy Funding, Inc. 1.87% 11/22/2004 29,967,275
25,000,000 Galaxy Funding, Inc. 1.91% 11/30/2004 24,961,535
25,000,000 General Electric Capital Corporation 1.74% 11/3/2004 24,997,583
3,300,000 General Electric Capital Corporation 1.79% 11/9/2004 3,298,687
30,000,000 General Electric Capital Corporation 1.97% 12/10/2004 29,935,975
2,000,000 General Electric Capital Corporation 4.25% 1/28/2005 2,010,038
50,000,000 Govco, Inc. 1.76% 11/1/2004 50,000,000
25,000,000 Govco, Inc. 1.79% 11/9/2004 24,990,056
25,000,000 Govco, Inc. 2.10% 1/28/2005 24,871,667
11,770,000 Greenwich Capital Holdings, Inc. 1.88% 11/1/2004 11,770,000
8,000,000 Harley-Davidson Funding Corporation 1.76% 11/10/2004 7,996,480
30,000,000 Household Finance Corporation 1.76% 11/3/2004 29,997,067
30,000,000 Household Finance Corporation 1.77% 11/9/2004 29,988,200
30,000,000 Household Finance Corporation 1.84% 11/18/2004 29,973,933
28,000,000 Independence Funding, LLC 1.89% 11/24/2004 27,966,190
15,369,000 Jupiter Securitization Corporation 1.80% 11/12/2004 15,360,547
15,808,000 Jupiter Securitization Corporation 1.85% 11/17/2004 15,795,002
25,000,000 Jupiter Securitization Corporation 1.93% 12/3/2004 24,957,111
18,367,000 Kitty Hawk Funding Corporation 1.77% 11/15/2004 18,354,357
21,500,000 Lehman Brothers Holdings, Inc. (c) 2.19% 1/24/2005 21,520,775
98,672,183 Merrill Lynch Premier Institutional 1.70% N/A 98,672,183
Money Market Fund
4,050,000 MLTC Funding, Inc. 1.90% 11/23/2004 4,045,298
100,000,000 Morgan Stanley Institutional 1.75% N/A 100,000,000
Liquidity Fund
3,600,000 Nestle Finance France SA 1.75% 11/2/2004 3,599,825
50,000,000 Nieuw Amsterdam Receivables 1.91% 11/29/2004 49,926,500
Corporation
20,227,000 Nieuw Amsterdam Receivables 1.90% 12/20/2004 20,174,691
Corporation
25,000,000 Nieuw Amsterdam Receivables 2.09% 1/25/2005 24,876,632
Corporation
5,000,000 Northwestern University 1.79% 11/3/2004 4,999,503
5,000,000 Northwestern University 1.85% 11/19/2004 4,995,375
5,000,000 Northwestern University 1.79% 11/22/2004 4,994,779
5,000,000 Northwestern University 1.80% 11/24/2004 4,994,250
5,000,000 Northwestern University 1.92% 12/14/2004 4,988,533
5,000,000 Northwestern University 1.93% 12/21/2004 4,986,597
5,000,000 Nyala Funding, LLC 1.88% 11/15/2004 4,996,364
23,326,000 Old Line Funding, LLC 1.80% 11/22/2004 23,301,508
10,855,000 Old Line Funding, LLC 1.88% 11/24/2004 10,841,962
25,212,000 Old Line Funding, LLC 1.90% 12/1/2004 25,172,081
30,000,000 Old Line Funding, LLC 1.90% 12/20/2004 29,924,050
12,500,000 Park Avenue Receivables Corporation 1.79% 11/10/2004 12,494,406
17,200,000 Park Avenue Receivables Corporation 1.85% 11/19/2004 17,184,090
32,544,000 Park Avenue Receivables Corporation 1.86% 11/23/2004 32,507,008
30,000,000 Park Avenue Receivables Corporation 1.87% 11/24/2004 29,964,158
25,000,000 Park Avenue Receivables Corporation 1.94% 12/13/2004 24,943,417
20,000,000 Preferred Receivables Funding Corporation 1.85% 11/16/2004 19,984,583
30,000,000 Preferred Receivables Funding Corporation 1.95% 11/30/2004 29,952,875
10,000,000 Private Export Funding Corporation 1.90% 12/27/2004 9,970,444
25,000,000 Procter & Gamble Company 1.84% 11/18/2004 24,978,278
8,953,000 Ranger Funding Company, LLC 1.79% 11/8/2004 8,949,884
6,828,000 River Fuel Trust No. 1 1.80% 11/1/2004 6,828,000
25,000,000 Royal Bank of Scotland plc 1.81% 11/24/2004 24,971,090
25,000,000 Sheffield Receivables Corporation 1.79% 11/9/2004 24,990,056
25,000,000 Sheffield Receivables Corporation 1.79% 11/10/2004 24,988,813
30,000,000 Sheffield Receivables Corporation 1.84% 11/16/2004 29,977,000
49,000,000 Shell Finance (UK) plc 1.83% 12/13/2004 48,895,385
64,850,000 Societe Generale 1.75% 11/1/2004 64,850,000
8,700,000 Stadshypotek Delaware, Inc. 1.78% 11/8/2004 8,696,989
40,000,000 Stadshypotek Delaware, Inc. 1.78% 11/22/2004 39,958,467
6,100,000 Stadshypotek Delaware, Inc. 2.00% 12/14/2004 6,085,428
26,159,000 Starfish Global Funding LLC 1.79% 11/5/2004 26,153,797
60,000,000 Suntrust Banks, Inc. 1.75% 11/1/2004 60,000,000
25,000,000 Svenska Handelsbanken NY (c) 1.81% 11/17/2004 24,989,480
50,000,000 Swiss RE Financial Products 1.83% 12/16/2004 49,885,625
10,392,000 Three Pillars, Inc. 1.85% 11/15/2004 10,384,523
25,000,000 Three Pillars, Inc. 1.86% 11/17/2004 24,979,333
23,715,000 Three Pillars, Inc. 2.15% 4/7/2005 23,492,639
14,876,000 Thunder Bay Funding, Inc. 1.77% 11/2/2004 14,875,268
11,545,000 Thunder Bay Funding, Inc. 1.77% 11/3/2004 11,543,865
22,477,000 Thunder Bay Funding, Inc. 1.76% 11/5/2004 22,472,605
15,000,000 Thunder Bay Funding, Inc. 1.95% 12/20/2004 14,960,188
31,000,000 Total Capital SA 1.84% 11/19/2004 30,971,480
25,000,000 Toyota Credit Puerto Rico 1.74% 11/2/2004 24,998,792
25,000,000 Toyota Credit Puerto Rico 1.76% 11/3/2004 24,997,555
20,000,000 Toyota Credit Puerto Rico 1.77% 11/8/2004 19,993,117
20,000,000 Toyota Credit Puerto Rico 1.78% 11/9/2004 19,992,089
20,000,000 Toyota Credit Puerto Rico 1.76% 11/15/2004 19,986,311
12,500,000 Toyota Credit Puerto Rico 1.89% 11/29/2004 12,481,625
30,000,000 Triple A-1 Funding Corporation 1.81% 11/16/2004 29,977,375
9,735,000 Triple A-1 Funding Corporation 1.83% 11/22/2004 9,724,608
7,981,000 Triple A-1 Funding Corporation 1.82% 11/23/2004 7,972,123
30,000,000 Tulip Funding Corporation 1.80% 11/1/2004 30,000,000
30,000,000 Tulip Funding Corporation 1.88% 11/22/2004 29,967,100
40,492,000 Tulip Funding Corporation 1.89% 11/26/2004 40,438,854
6,939,000 Tulip Funding Corporation 1.94% 11/29/2004 6,928,530
10,876,000 Tulip Funding Corporation 1.88% 12/1/2004 10,858,961
50,000,000 Wal-Mart Funding Corporation 1.85% 11/17/2004 49,958,889
25,000,000 Wells Fargo Bank 1.90% 11/30/2004 25,000,000
20,000,000 Windmill Funding Corporation 1.85% 11/18/2004 19,982,528
25,000,000 Windmill Funding Corporation 1.92% 12/6/2004 24,953,333
10,000,000 Windmill Funding Corporation 1.93% 12/7/2004 9,980,700
10,000,000 Windmill Funding Corporation 1.88% 12/15/2004 9,977,022
6,600,000 Windmill Funding Corporation 1.93% 12/29/2004 6,579,478
- ------------------------------------------------------------------------------------------------------------
Total Short-Term Investments
(at amortized cost) $3,996,117,371
- ------------------------------------------------------------------------------------------------------------
Total Investments
(cost $3,996,117,371) $3,996,117,371
- ------------------------------------------------------------------------------------------------------------
(a) The categories of investments are shown as a percentage of total
investments.
(b) The interest rate shown reflects the yield or, for securities purchased
at a discount, the discount rate at the date of purchase.
(c) Denotes variable rate obligations for which the current yield and next
scheduled reset date are shown.
(d) Earmarked as collateral for long settling trades as discussed in the
notes to the financial statements.
(e) Denotes investments purchased on a when-issued basis.
The accompanying notes to the financial statements are an integral part of
this schedule.
STATEMENT OF ASSETS AND LIABILITIES
AS OF OCTOBER 31, 2004
Thrivent Financial Securities Lending Trust
- -------------------------------------------------------------------
Assets
Investments at cost $3,996,117,371
Investments at value 3,996,117,371
Cash 3,738
Dividend and interest receivable 689,433
Receivable for trust shares sold 12,187,342
- -------------------------------------------------------------------
Total Assets 4,008,997,884
===================================================================
Liabilities
Distributions Payable 5,842,333
Accrued expenses 14,986
Payable for investments purchased 50,000,000
Payable for trust shares redeemed 10,659,219
Payable to affiliate 134,085
- -------------------------------------------------------------------
Total Liabilities 66,650,623
===================================================================
Net Assets
Trust Capital (beneficial interest) 3,942,341,699
Accumulated undistributed net realized gain
on investments 5,562
- -------------------------------------------------------------------
Total Net Assets $3,942,347,261
===================================================================
Net Assets $3,942,347,261
Shares of beneficial interest outstanding 3,942,341,699
Net asset value per share $1.00
The accompanying notes to the financial statements are an integral
part of this statement.
STATEMENT OF OPERATIONS
FOR THE PERIOD FROM SEPTEMBER 16, 2004 (INCEPTION) TO OCTOBER 31, 2004
Thrivent Financial Securities Lending Trust
- -------------------------------------------------------------------
Investment Income
Taxable interest $8,282,329
Dividends 283,994
- -------------------------------------------------------------------
Total Investment Income 8,566,323
===================================================================
Expenses
Adviser fee 210,952
Accounting and pricing fees 7,032
Audit and legal fees 13,570
Custody fees 9,103
Transfer agent fees 8,330
Trustees' fees and insurance expenses 3,494
Other expenses 630
Total Expenses Before Reimbursement 253,111
===================================================================
Less:
Reimbursement from adviser (18,724)
- -------------------------------------------------------------------
Total Net Expenses 234,387
Net Investment Income 8,331,936
===================================================================
Realized and Unrealized Gains/(Losses) on Investments
Net realized gains on investments 5,562
- -------------------------------------------------------------------
Net Realized and Unrealized Gains on Investments 5,562
===================================================================
Net Increase in Net Assets Resulting From Operations $8,337,498
===================================================================
The accompanying notes to the financial statements are an integral
part of this statement.
STATEMENT OF CHANGES IN NET ASSETS
Thrivent Financial Securities Lending Trust
Period From
9/16/2004
(inception) to
10/31/2004
- -------------------------------------------------------------------
Operations
Net investment income $8,331,936
Net realized gains on investments 5,562
Net Increase in Net Assets Resulting
From Operations 8,337,498
- -------------------------------------------------------------------
Distributions to Shareholders
- -------------------------------------------------------------------
From net investment income (8,331,936)
Total Distributions to Shareholders (8,331,936)
- -------------------------------------------------------------------
Trust Share Transactions 3,942,341,699
===================================================================
Net Increase in Net Assets 3,942,347,261
===================================================================
Net Assets Beginning of Period 0
===================================================================
Net Assets End of Period $3,942,347,261
===================================================================
The accompanying notes to the financial statements are an integral
part of this statement.
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2004
Thrivent Financial Securities Lending Trust
A. Organization
The Thrivent Financial Securities Lending Trust (the "Trust") was organized
as a Massachusetts Business Trust on August 25, 2004 and is registered as
an open-end management investment company under the Investment Company Act
of 1940. The Trust commenced operations on September 16, 2004. All
transactions in the Trust are from Affiliates of the Trust.
Under the Trust's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of
their duties to the Trust. In addition, in the normal course of business,
the Trust enters into contracts with vendors and others that provide
general damage clauses. The Trust's maximum exposure under these contracts
is unknown, as this would involve future claims that may be made against
the Trust. However, based on experience, the Trust expects the risk of loss
to be remote.
B. Significant Accounting Policies
Valuation - Securities are valued on the basis of amortized cost (which
approximates value), whereby a portfolio security is valued at its cost
intially, and thereafter valued to reflect a constant amortization to
maturity of any discount or premium.
Federal Income Taxes -- The Trust intends to comply with the requirements of
the Internal Revenue Code which are applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. The Trust accordingly anticipates paying no Federal income
taxes and no Federal income tax provision was required.
Fees Paid Indirectly -- The Trust has a deposit arrangement with the
custodian whereby interest earned on uninvested cash balances is used to
pay a portion of custodian fees. This deposit arrangement is an alternative
to overnight investments.
Distributions to Shareholders -- Net investment income is distributed to
each shareholder as a dividend. Dividends from the Trust are declared
daily and distributed monthly. Net realized gains from securities
transactions, if any, are distributed at least annually in the calendar
year.
Use of Estimates -- The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of
America require management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period.
Actual results could differ from these estimates.
Other -- For financial statement purposes, investment security transactions
are accounted for on the trade date. Interest income is recognized on an
accrual basis. Discount and premium are amortized over the life of the
respective securities on the interest method. Realized gains or losses on
sales are determined on a specific cost identification basis. Generally
accepted accounting principles require permanent financial reporting and
tax differences be reclassified to trust capital. No reclassifications
were necessary at October 31, 2004.
C. Investment Advisory Management Fees and Transactions with Related
Parties
The Trust has entered into an Investment Advisory Agreement with Thrivent
Financial for Lutherans (the "Adviser") under which the Trust pays a fee
for investment advisory services. The annual rate of fees under the
Investment Advisory Agreement are calculated at 0.045% of the average daily
net assets of the Trust.
Each Trustee who is not affiliated with Thrivent Financial for Lutherans or
the Adviser receives an annual fee from the Trust for services as a Trustee
and is eligible to participate in a deferred compensation plan with respect
to these fees. Each participant's deferred compensation account will
increase or decrease as if it were invested in shares of the Thrivent
Mutual Funds based on their choice.
Trustees not participating in the above plan received zero dollars in fees
from the Trust for the period from September 16, 2004 (inception) to
October 31, 2004. No remuneration has been paid by the Trust to any of the
officers or affiliated Trustees of the Trust. In addition, the Trust
reimbursed unaffiliated Trustees for reasonable expenses incurred in
relation to attendance at the meetings.
Certain officers and non-independent trustees of the Trust are officers of
Thrivent Financial for Lutherans; however, they receive no compensation
from the Trust.
The Adviser has voluntarily reimbursed the Trust for all expenses in excess
of 0.05% of average daily net assets since inception.
D. Federal Income Tax Information
The cost basis of the investments is the same for financial reporting
purposes and Federal income tax purposes.
During the period from September 16, 2004 (inception) to October 31, 2004,
The Trust distributed $8,331,936 from ordinary income.
At October 31, 2004, undistributed ordinary income for tax purposes was
$5,830.
E. Trust Transactions
Transactions in trust shares for the period from September 16, 2004
(inception) to October 31, 2004, were as follows:
Shares Amount
10/31/2004 10/31/2004
------------- --------------
Shares sold 4,630,139,403 $4,630,139,403
Shares redeemed (687,797,704) (687,797,704)
Net Change in Trust Shares 3,942,341,699 $3,942,341,699
============= ==============
FINANCIAL HIGHLIGHTS
PER SHARE INFORMATION (a)
Thrivent Financial Securities Lending Trust
Period From
9/16/2004
(inception)
To 10/31/2004
- -------------------------------------------------------------------
Net asset value: Beginning
of Period $1.00
Income from Investment Operations
Net investment income 0.00
- -------------------------------------------------------------------
Total from Investment Operations 0.00
===================================================================
Distributions from:
Net investment income (0.00)
- -------------------------------------------------------------------
Total Distributions (0.00)
===================================================================
Net asset value: End of Period $1.00
===================================================================
Total return (c) 0.22%
Net assets: end of period (in thousands) $3,942.3
Ratio of expenses to average net assets (d) 0.05%
Ratio of net investment income to average net assets (d) 1.80%
Portfolio turnover rate N/A
If the Fund had paid all its expenses without the
advisors voluntary expense reimbursement, the
ratios would have been as follows:
Ratio of expenses to average net assets (d) 0.05%
Ratio of net investment income to average net assets (d) 1.80%
(a) All per share amounts have been rounded to the nearest cent.
(b) The amount shown may not correlate with the change in aggregate gains
and losses of portfolio securities due to the timing of sales and
redemptions of fund shares.
(c) Total investment return assumes dividend reinvestment and does not
reflect any deduction for sales charges.
(d) Computed on an annualized basis for periods less than one year.
The accompanying notes to the financial statements are an integral part of
this schedule.
ADDITIONAL INFORMATION
(unaudited)
PROXY VOTING
The policies and procedures that the Trust uses to determine how to vote
proxies relating to portfolio securities are attached to the Trust's
Statement of Additional Information. You may request a free copy of the
Statement of Additional Information or the report of how the Trust voted
proxies relating to portfolio securities during the most recent 12-month
period ended June 30 by calling 800-947-4836. You also may review the
Statement of Additional Information or the report of how the Trust voted
proxies relating to portfolio securities during the most recent 12-month
period ended June 30 at the Thrivent Financial web site (www.thrivent.com)
or the SEC web site (www.sec.gov).
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS
The Trust files its Schedule of Portfolio Holdings on Form N-Q with the SEC
for the first and third quarters of each fiscal year. You may request a
free copy of the Trust's Forms N-Q by calling 1-800-947-4836. The Trust's
Forms N-Q also are available on the Thrivent Financial web site
(www.thrivent.com) or the SEC web site (www.sec.gov). You also may review
and copy the Forms N-Q for the Trust at the SEC's Public Reference Room in
Washington, DC. You may get information about the operation of the Public
Reference Room by calling 1-800-SEC-0330.
BOARD OF TRUSTEES AND OFFICERS
The following table provides information about the Trustees and officers of
the Trust.
IN ADDITION TO SERVING AS A TRUSTEE OF THE TRUST, EACH TRUSTEE ALSO SERVES
AS:
* DIRECTOR OF THRIVENT SERIES FUND, INC., A REGISTERED INVESTMENT COMPANY
CONSISTING OF 26 PORTFOLIOS THAT SERVE AS UNDERLYING FUNDS FOR VARIABLE
CONTRACTS ISSUED BY THRIVENT FINANCIAL FOR LUTHERANS ("THRIVENT
FINANCIAL") AND THRIVENT LIFE INSURANCE COMPANY ("TLIC") AND INVESTMENT
OPTIONS IN THE RETIREMENT PLAN OFFERED BY THRIVENT FINANCIAL.
* TRUSTEE OF THRIVENT MUTUAL FUNDS, A REGISTERED INVESTMENT COMPANY
CONSISTING OF 24 PORTFOLIOS
THE 24 SERIES OF THRIVENT MUTUAL FUNDS, 26 PORTFOLIOS OF THRIVENT SERIES
FUND, INC., AND THRIVENT FINANCIAL SECURITIES LENDING TRUST ARE REFERRED
TO HEREIN AS THE "INVESTMENT COMPANY COMPLEX."
THE STATEMENT OF INFORMATION INCLUDES ADDITIONAL INFORMATION ABOUT THE
TRUSTEES AND IS AVAILABLE, WITHOUT CHARGE, BY CALLING 1-800-847-4836.
<CAPTON>
Interested
Trustee(1)
Number of
Portfolios
in Fund
Position with Trust Complex
Name, Address and and Length of Overseen by Principal Occupation During
Age Service(2) Trustee the Past 5 Years Other Directorships Held by Trustee
- -----------------------------------------------------------------------------------------------------------------------------------
Pamela J. Moret President and 51 Executive Vice President, Director, Lutheran World Relief; Director,
625 Fourth Avenue Trustee since 2004 Marketing and Products, Minnesota Public Radio
South Thrivent Financial since
Minneapolis, MN 2002; Senior Vice President,
Age 48 Products, American Express
Financial Advisors from 2000
to 2001; Vice President,
Variable Assets, American
Express Financial Advisors
from 1996 to 2000
Independent
Trustees(3)
Number of
Portfolios
in Fund
Position with Trust Complex
Name, Address and and Length of Overseen by Principal Occupation During
Age Service(2) Trustee the Past 5 Years Other Directorships Held by Trustee
- -----------------------------------------------------------------------------------------------------------------------------------
F. Gregory Campbell Trustee since 2004 51 President, Carthage College Director, National Association of
625 Fourth Avenue Independent Colleges and Universities,
South Director, Johnson Family Funds, Inc., an
Minneapolis, MN investment company consisting of four
Age 65 portfolios; Director, Kenosha Hospital and
Medical Center Board; Prairie School Board;
United Health Systems Board
Herbert F. Lead Trustee since 51 Management consultant to None
Eggerding, Jr. 2004 several privately owned
625 Fourth Avenue companies
South
Minneapolis, MN
Age 67
Noel K. Estenson Trustee since 2004 51 Retired; previously President None
625 Fourth Avenue and Chief Executive Officer,
South CenexHarvestStates (farm
Minneapolis, MN supply and marketing and food
Age 65 business)
Richard L. Gady Trustee since 2004 51 Retired; previously Vice Director, International Agricultural
625 Fourth Avenue President, Public Affairs and Marketing Association
South Chief Economist, Conagra,
Minneapolis, MN Inc. (agribusiness)
Age 61
Connie M. Levi Trustee since 2004 51 Retired Director, Norstan, Inc.
625 Fourth Avenue
South
Minneapolis, MN
Age 65
Edward W. Smeds Chairman and 51 Retired Chairman of Carthage College Board
625 Fourth Avenue Trustee since 2004
South
Minneapolis, MN
Age 68
EXECUTIVE OFFICERS
<CAPTON>
Position with Trust and
Name, Address and Age Length of Service(2) Principal Occupation During the Past 5 Years
Pamela J. Moret President since 2004 Executive Vice President, Marketing and Products, Thrivent
625 Fourth Avenue South Financial since 2002; Senior Vice President, Products, American
Minneapolis, MN Express Financial Advisors from 2000 to 2001; Vice President,
Age 48 Variable Assets, American Express Financial Advisors from 1996
to 2000
James E. Nelson Secretary since 2004 Vice President, Securities Law, Thrivent Financial since 2001;
625 Fourth Avenue South Counsel and head of Insurance Practice Group, Law Division of
Minneapolis, MN ING ReliaStar (formerly ReliaStar Financial Corp.) from 1998 to
Age 44 2001
Katie S. Kloster Vice President and Chief Vice President and Rule 38a-1 Chief Compliance Officer,since
625 Fourth Avenue South Compliance Officer since 2004; previously Vice President and Comptroller of Thrivent
Minneapolis, MN 2004 Financial.
Age 39
Russell W. Swansen Vice President since 2004 Chief Investment Officer, Thrivent Financial, since 2004;
625 Fourth Avenue South Managing Director, Colonade Advisors, LLC, from 2001 to 2003,
Minneapolis, MN President and Chief Investment Officer of PPM American from 1999
Age 47 to 2000
Frederick P. Johnson Vice President since 2004 Vice President, Investment Operations, Thrivent Financial
625 Fourth Avenue South
Minneapolis, MN
Age 42
Thomas R Mischka Vice President and Anti-Money Vice President of Divisional Support Services, Thrivent
4321 North Ballard Road Laundering Officer since 2004 Financial
Appleton, WI
Age 45
John C. Bjork Assistant Secretary since Senior Counsel, Thrivent Financial
625 Fourth Avenue South 2004
Minneapolis, MN
Age 51
Marlene J. Nogle Assistant Secretary since Senior Counsel, Thrivent Financial
625 Fourth Avenue South 2004
Minneapolis, MN
Age 57
Todd J. Kelly Assistant Treasurer since Director, Fund Accounting Operations, Thrivent Financial
4321 North Ballard Road 2004
Appleton, WI
Age 35
Gerard V. Vaillancourt Assistant Treasurer since Director, Fund Accounting Administration, Thrivent Financial
625 Fourth Avenue South 2004 since 2002; Manager--Portfolio Compliance, Lutheran Brotherhood
Minneapolis, MN from 2001 to 2002; Manager--Fund Accounting, Minnesota Life from
Age 37 2000 to 2001; Supervisor--Securities Accounting, Lutheran
Brotherhood from 1998 to 2000
(1) "Interested person" of the Trust as defined in the Investment Company
Act of 1940 by virtue of positions with Thrivent Financial. Ms. Moret
is considered an interested person because of her principal occupation
with Thrivent Financial.
(2) Each Trustee serves an indefinite term until her or his successor is
duly elected and qualified. The bylaws of the Trust provide that each
Trustee must retire at the end of the year in which the Trustee attains
age 70. Officers serve at the discretion of the board until their
successors are duly appointed and qualified.
(3) The Trustees other than Ms. Moret are not "interested persons" of the
Trust and are referred to as "Independent Trustees."
This report is submitted for the information of shareholders of Thrivent
Financial Securities Lending Trust. It is not authorized for distribution
to prospective investors unless preceded or accompanied by the current
prospectus for Thrivent Financial Securities Lending Trust, which contains
more complete information about the Funds, including investment policies,
charges and expenses.
[GRAPHIC OMITTED: THRIVENT INVESTMENT MANAGEMENT TRADEMARK LOGO]
625 Fourth Ave. S., Minneapolis, MN 55415-1665
www.thrivent.com e-mail: mail@thrivent.com 800-THRIVENT (800-847-4836)
Item 2. Code of Ethics
- ----------------------
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 amendments were
approved or waivers were granted to such code of ethics during the period
covered by this report. A copy of this code of ethics is filed as an
exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
- ----------------------------------------
Registrant's Board of Trustees has determined that Herbert F. Eggerding,
Jr., an independent trustee, is the Audit Committee Financial Expert.
Item 4. Principal Accountant Fees and Services
- ----------------------------------------------
(a) Audit Fees
The aggregate fees billed by registrant's independent public accountants,
PricewaterhouseCoopers LLP ("PwC"), for the period covered by this report
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 $8,000 for the fiscal period from August 25, 2004
(the effective date of the Trust's registration) through October 31, 2004.
(b) Audit-Related Fees
The aggregate fees PwC billed to registrant for the period covered by this
report for assurance and other services which are reasonably related to the
performance of registrant's audit and are not reported under Item 4(a) were
$0 for the fiscal period from August 25, 2004 (the effective date of the
Trust's registration) through October 31, 2004. The aggregate fees PwC
billed to registrant's investment adviser and any entity controlling,
controlled by, or under common control with registrant's investment adviser
for assurance and other services directly related to the operations and
financial reporting of registrant were $0 for the fiscal period from August
25, 2004 (the effective date of the Trust's registration) through October
31, 2004.
(c) Tax Fees
The aggregate tax fees PwC billed to registrant for the period covered by
this report for tax compliance, tax advice, and tax planning services were
$0 for the fiscal period from August 25, 2004 (the effective date of the
Trust's registration) through October 31, 2004. The aggregate tax fees PwC
billed to registrant's investment adviser and any entity controlling,
controlled by, or under common control with registrant's investment adviser
for services directly related to the operations and financial reporting of
registrant were $0 for the fiscal period from August 25, 2004 (the
effective date of the Trust's registration) through October 31, 2004.
(d) All Other Fees
The aggregate fees PwC billed to registrant for the period covered by this
report for products and services provided other than the services reported
in paragraphs (a) through (c) of this item were $0 for the fiscal period
from August 25, 2004 (the effective date of the Trust's registration)
through October 31, 2004. The aggregate fees PwC billed to registrant's
investment adviser and any entity controlling, controlled by, or under
common control with registrant's investment adviser for products and
services provided other than the services reported in paragraphs (a)
through (c) of this item were $0 for the fiscal period from August 25, 2004
(the effective date of the Trust's registration) through October 31, 2004.
(e) Registrant's audit and compliance committee charter, adopted in August
2004, provides that the audit and compliance committee (comprised of the
independent directors of registrant) is responsible for pre-approval of all
auditing services performed for the registrant. The audit and compliance
committee reports to the Board of Trustees ("Board") regarding its approval
of the engagement of the auditor and the proposed fees for the engagement,
and the majority of the Board (including the members of the Board who are
independent trustees) must approve the auditor at an in-person meeting. The
audit and compliance committee also is responsible for pre-approval
(subject to the de minimus exceptions for non-audit services described in
Section 10A(i)(1)(B) of the Securities Exchange Act of 1934, as amended) of
all non-auditing services performed for the registrant or for any service
affiliate of registrant. Registrant's audit and compliance committee
charter also permits a designated member of the audit and compliance
committee to pre-approve, between meetings, one or more non-audit service
projects, subject to ratification by the audit committee at the next
meeting of the audit and compliance committee. Registrant's audit and
compliance committee pre-approved all fees described above which PwC billed
to registrant.
(f) Less than 50% of the hours billed by PwC for auditing services to
registrant for the fiscal period from August 25, 2004 (the effective date
of the Trust's registration) through October 31, 2004, were for work
performed by persons other than full-time, permanent employees of PwC.
(g) The aggregate non-audit fees billed by PwC to registrant and to
registrant's investment adviser and any entity controlling, controlled by,
or under common control with registrant's investment adviser for the fiscal
period from August 25, 2004 (the effective date of the Trust's
registration) through October 31, 2004 were $0.
(h) Registrant's audit and compliance committee has considered the
non-audit services provided to the registrant and registrant's investment
adviser and any entity controlling, controlled by, or under common control
with registrant's investment adviser as described above and determined that
these services do not compromise PwC's independence.
Item 5. Audit Committee of Listed Registrants
- ---------------------------------------------
Not applicable.
Item 6. Schedule of Investments
- -------------------------------
Registrant's Schedule of Investments is included in the report to
shareholders filed under Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
- -------------------------------------------------------------------------
Management Investment Companies
- -------------------------------
Not applicable.
Item 8. Purchases of Equity Securities by Closed-End Management Investment
- -------------------------------------------------------------------------
Company and Affiliated Purchasers.
- ----------------------------------
Not applicable.
Item 9. Submission of Matters to a Vote of Security Holders
- -----------------------------------------------------------
There have been no material changes to the procedures by which shareholders
may recommend nominees to registrant's board of trustees.
Item 10. Controls and Procedures
- --------------------------------
(a)(i) Registrant's President and Treasurer have concluded that
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act) are effective, based on their
evaluation of these controls and procedures as of a date within 90 days of
the filing date of this report.
(a)(ii) There were no changes in registrant's internal controls over
financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act) that occurred during the fiscal period covered by this report
that has materially affected, or is reasonably likely to materially affect,
registrant's internal control over financial reporting.
Item 11. Exhibits
- -----------------
(a) The code of ethics pursuant to Item 2 is attached hereto.
(b) Certifications pursuant to Rules 30a-2(a) and 30a-2(b) under the Investment
Company Act of 1940 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
January 7, 2005 THRIVENT FINANCIAL
SECURITIES LENDING TRUST
By: /s/ Pamela J. Moret
-----------------------
Pamela J. Moret
President
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on
the dates indicated.
January 7, 2005 By: /s/ Pamela J. Moret
-----------------------
Pamela J. Moret
President
January 7, 2005 By: /s/ Randall L. Boushek
-----------------------
Randall L. Boushek
Treasurer