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)
John C. Bjork, Assistant Secretary
625 Fourth Avenue South
Minneapolis, Minnesota 55415
(Name and address of agent for service)
Registrant's telephone number, including area code: (612) 340-7005
Date of fiscal year end: October 31
Date of reporting period: April 29, 2005
Item 1. Report to Stockholders
- ------------------------------
SEMIANNUAL REPORT
APRIL 29, 2005
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.
During the six-month period ended April 29, 2005, the Federal Open
Market Committee continued its tightening pattern of raising the fed
funds rate. While the Trust's weighted-average maturity has fluctuated
in response to these moves, it remained shorter than the
weighted-average maturity of the peer group throughout the period. We
expect the Fed to continue to raise rates at a measured pace, and we
will continue to manage for liquidity and conservative yield
improvement.
[GRAPHIC PIE CHART OMITTED: PORTFOLIO COMPOSITION (% OF PORTFOLIO)]
Portfolio Composition
(% of Portfolio)
Commercial Paper 81.4%
Other 2.5%
U.S. Municipal 1.3%
U.S. Government 6.4%
Certificate of Deposit 8.4%
THRIVENT FINANCIAL SECURITIES LENDING TRUST FUND
AS OF APRIL 29, 2005*
7-Day Yield 2.82%
7-Day Effective Yield 2.86%
AVERAGE ANNUAL TOTAL RETURNS**
For the Period from September 16, 2004
(commencement of operation) to April 29, 2005
Net Asset Value 1.39%
* Seven-day yields of the Thrivent Financial Securities Lending Trust
refer to the income generated by an investment in the Trust over a
specified seven-day period. Effective yields reflect the reinvestment
of income. Yields are subject to daily fluctuation and should not be
considered an indication of future results.
** Past performance is not an indication of future results. Investing in
a mutual fund involves risks, including the possible loss of principal.
The prospectus contains more complete information on the investment
objectives, risks, charges and expenses of the investment company which
investors should read and consider carefully before investing.
Annualized total returns represent past performance and reflect changes
in share prices, the reinvestment of all dividends and capital gains,
and the effects of compounding. The returns shown do not reflect taxes a
shareholder would pay on distributions or redemptions.
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 November 1, 2004 through April 29, 2005.
Actual Expenses
The first line of the table below provides information about actual
account values and actual expenses. You may use the information in this
line, together with the amount you invested, to estimate the expenses
that you paid over the period. Simply divide your account value by
$1,000 (for example, an $8,600 account value divided by $1,000 = 8.6),
then multiply the result by the number in the first line under the
heading entitled "Expenses Paid During Period" to estimate the expenses
you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about
hypothetical account values and hypothetical expenses based on the
Trust's actual expense ratio and an assumed rate of return of 5% per
year before expenses, which is not the Trust's actual return. The
hypothetical account values and expenses may not be used to estimate the
actual ending account balance or expenses you paid for the period. You
may use this information to compare the ongoing costs of investing in
the Trust and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical example that appears in the shareholder
reports of the other funds.
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such
as sales charges (loads), redemption fees, or exchange fees. Therefore,
the second line of the table is useful in comparing ongoing costs only,
and will not help you determine the relative total costs of owning
different funds. In addition, if these transactional costs were
included, your costs would have been higher.
Beginning Ending Expenses
Account Account Paid During Annualized
Value Value Period* Expense
11/1/2004 4/29/2005 11/1/2004 - 4/29/2005 Ratio
Thrivent Financial Securities Lending Trust
Actual $ 1,000 $ 1,012 $ 0.25 0.05%
Hypothetical ** $ 1,000 $ 1,024 $ 0.25 0.05%
* Expenses are equal to the Trust's annualized expense ratio,
multiplied by the average account value over the period, multiplied by
180/365 to reflect the one-half year period.
** Assuming 5% total return before expenses
SCHEDULE OF INVESTMENTS
AS OF APRIL 29, 2005 (UNAUDITED)
Thrivent Financial Securities Lending Trust (a)
<CAPTON>
- ------------------------------------------------------------------------------------------------------------
Principal Interest Maturity
Amount Certificate of Deposit (8.4%) Rate (b) Date Value
- ------------------------------------------------------------------------------------------------------------
Banking-Domestic (6.2%)
$25,000,000 Barclays Bank plc NY 2.950% 6/14/2005 $25,000,000
20,000,000 Credit Suisse First Boston NY (c) 2.883 5/25/2005 20,001,005
25,000,000 Rabobank Nederland NY (c) 2.880 5/16/2005 24,991,931
23,365,000 Royal Bank of Canada NY (c) 2.935 5/25/2005 23,361,028
12,500,000 Royal Bank of Scotland NY (c) 2.874 5/16/2005 12,495,571
25,000,000 Societe Generale NY (c) 2.803 6/2/2005 24,994,160
5,000,000 Svenska Handelsbanken NY 2.800 5/3/2005 4,999,999
25,000,000 Svenska Handelsbanken NY (c) 2.890 5/17/2005 24,994,396
85,000,000 UBS AG 2.910 5/2/2005 85,000,000
- ------------------------------------------------------------------------------------------------------------
Total Banking-Domestic 245,838,090
============================================================================================================
Banking-Foreign (2.2%)
85,880,000 Societe Generale 2.940 5/2/2005 85,880,000
- ------------------------------------------------------------------------------------------------------------
Total Banking-Domestic 85,880,000
- ------------------------------------------------------------------------------------------------------------
Total Certificate of Deposit 331,718,090
============================================================================================================
Principal Interest Maturity
Amount Commercial Paper (81.4%) Rate (b) Date Value
- ------------------------------------------------------------------------------------------------------------
Asset-Backed Commercial Paper (1.1%)
$15,000,000 GOVCO, Inc. 2.790% 5/19/2005 $14,977,912
30,000,000 GOVCO, Inc. 3.100 7/25/2005 29,777,833
- ------------------------------------------------------------------------------------------------------------
Total Asset-Backed Commercial Paper 44,755,745
============================================================================================================
Banking-Domestic (18.1%)
20,000,000 Acts Retirement - Life Communities, Inc. 2.930 6/6/2005 19,939,772
12,601,000 Associates Corporation of North America 6.000 7/15/2005 12,690,351
10,000,000 Bank One NA Illinois (c) 3.014 5/16/2005 10,007,339
25,000,000 Bank One NA Illinois (c) 3.170 6/20/2005 25,014,749
10,600,000 Barclays US Funding, LLC 2.800 5/2/2005 10,598,351
15,000,000 Barclays US Funding, LLC 3.005 5/27/2005 14,966,194
60,848,000 Blue Spice, LLC 3.000 5/3/2005 60,833,184
25,000,000 Citigroup, Inc. (c) 2.950 6/1/2005 25,005,542
24,425,000 Citigroup, Inc. 4.125 6/30/2005 24,486,732
25,000,000 Credit Suisse First Boston Company 3.000 5/27/2005 24,943,750
30,000,000 Deutsche Bank Financial, LLC 2.850 5/5/2005 29,988,125
30,000,000 Dexia Delaware, LLC 2.670 5/2/2005 29,995,550
8,450,000 Dexia Delaware, LLC 2.850 5/6/2005 8,445,986
9,000,000 Dexia Delaware, LLC 3.000 5/16/2005 8,988,000
25,000,000 Dexia Delaware, LLC 2.785 5/17/2005 24,967,122
20,000,000 Dexia Delaware, LLC 3.000 6/22/2005 19,911,667
50,000,000 Fifth Third Bancorp (c) 2.980 5/23/2005 50,000,000
25,000,000 Louis Dreyfus Corporation 2.800 5/2/2005 24,996,111
29,500,000 Louis Dreyfus Corporation 2.920 5/18/2005 29,456,930
10,000,000 Louis Dreyfus Corporation 2.790 5/2/2005 9,998,450
5,041,000 MLTC Funding, Inc. 3.010 5/24/2005 5,030,884
67,790,000 Rabobank USA Finance Corporation 3.000 5/2/2005 67,778,806
6,917,000 River Fuel Company No. 2, Inc. 3.030 6/21/2005 6,886,727
7,893,000 River Fuel Trust Funding Company, Inc. 3.030 6/21/2005 7,858,455
5,559,000 River Fuel Trust No. 1 3.000 6/17/2005 5,536,764
7,956,000 River Fuel Trust No. 1 3.030 6/21/2005 7,921,179
15,869,000 Society of New York Hospital Fund 2.820 5/3/2005 15,865,271
20,000,000 Society of New York Hospital Fund 2.750 5/6/2005 19,990,833
30,000,000 Stadshypotek Delaware, Inc. 2.800 5/4/2005 29,990,667
3,600,000 UBS Finance Corporation 3.000 5/3/2005 3,599,100
5,800,000 UBS Finance Corporation 2.980 5/6/2005 5,797,245
45,000,000 US Bank NA (c) 2.950 6/6/2005 45,011,583
25,000,000 Wells Fargo & Company (c) 3.030 6/3/2005 25,032,380
- ------------------------------------------------------------------------------------------------------------
Total Banking-Domestic 711,533,799
============================================================================================================
Banking-Foreign (1.1%)
25,000,000 HBOS Treasury Services plc (c) 3.160 7/12/2005 25,012,305
20,000,000 Royal Bank of Scotland plc (c) 2.970 5/23/2005 20,000,000
- ------------------------------------------------------------------------------------------------------------
Total Banking-Foreign 45,012,305
============================================================================================================
Brokerage (3.6%)
30,000,000 Goldman Sachs Group, Inc. 3.000 5/18/2005 29,955,000
25,000,000 Goldman Sachs Group, Inc. 3.000 5/24/2005 24,950,000
21,500,000 Lehman Brothers Holdings, Inc. (c) 3.250 7/22/2005 21,506,726
20,000,000 Merrill Lynch & Company, Inc. (c) 3.430 7/18/2005 20,059,512
25,000,000 Morgan Stanley 3.030 6/15/2005 24,903,208
20,000,000 Morgan Stanley (c) 2.860 6/3/2005 20,000,000
- ------------------------------------------------------------------------------------------------------------
Total Brokerage 141,374,446
============================================================================================================
Communications (d)
2,000,000 Gannett Company, Inc. 3.000 5/11/2005 1,998,167
- ------------------------------------------------------------------------------------------------------------
Total Communications 1,998,167
============================================================================================================
Consumer Cyclical (4.1%)
20,000,000 American Honda Finance Corporation (c) 2.836 5/6/2005 20,000,000
20,000,000 American Honda Finance Corporation (c) 3.019 6/8/2005 20,011,092
25,000,000 Toyota Credit Puerto Rico 2.800 5/3/2005 24,994,167
30,000,000 Toyota Credit Puerto Rico 3.020 6/27/2005 29,854,033
10,000,000 Toyota Credit Puerto Rico 3.040 6/28/2005 9,950,178
30,000,000 Toyota Credit Puerto Rico 3.040 6/29/2005 29,848,000
25,000,000 Toyota Motor Credit Corporation 3.000 6/30/2005 24,872,917
- ------------------------------------------------------------------------------------------------------------
Total Consumer Cyclical 159,530,387
============================================================================================================
Consumer Non-Cyclical (2.8%)
10,000,000 Alcon Capital Corporation 2.800 5/3/2005 9,997,667
16,500,000 Cargill, Inc. 2.760 5/2/2005 16,497,470
55,000,000 UnitedHealth Group, Inc. 2.970 5/2/2005 54,990,975
30,000,000 UnitedHealth Group, Inc. 2.800 5/4/2005 29,990,667
- ------------------------------------------------------------------------------------------------------------
Total Consumer Non-Cyclical 111,476,779
============================================================================================================
Education (2.5%)
62,046,000 Duke University 2.750 5/2/2005 62,036,561
35,550,000 Yale University 2.750 5/2/2005 35,544,569
- ------------------------------------------------------------------------------------------------------------
Total Education 97,581,130
============================================================================================================
Electric (0.3%)
11,000,000 Southern Company 3.000 5/23/2005 10,978,917
- ------------------------------------------------------------------------------------------------------------
Total Electric 10,978,917
============================================================================================================
Energy (2.1%)
55,000,000 Total Capital SA 2.950 5/2/2005 54,991,253
27,000,000 Total Capital SA 3.000 5/4/2005 26,991,000
- ------------------------------------------------------------------------------------------------------------
Total Energy 81,982,253
============================================================================================================
Finance (39.5%)
20,500,000 Amsterdam Funding Corporation 2.990 5/5/2005 20,491,914
30,000,000 Amsterdam Funding Corporation 2.920 5/27/2005 29,934,300
37,000,000 Barton Capital Corporation 2.820 5/4/2005 36,988,434
25,000,000 Barton Capital Corporation 2.840 5/5/2005 24,990,243
11,778,000 Barton Capital Corporation 2.900 5/11/2005 11,767,563
3,805,000 Barton Capital Corporation 3.000 5/17/2005 3,799,610
25,000,000 Chariot Funding, LLC 2.820 5/3/2005 24,994,125
20,000,000 Chariot Funding, LLC 2.810 5/5/2005 19,992,194
16,208,000 Chariot Funding, LLC 2.920 5/13/2005 16,190,910
36,220,000 Chariot Funding, LLC 3.000 5/18/2005 36,166,453
22,500,000 Chariot Funding, LLC 3.020 5/27/2005 22,449,038
3,800,000 Corporate Asset Finance Company, LLC 2.980 6/7/2005 3,788,047
25,000,000 CXC, Inc. 2.990 5/4/2005 24,991,694
25,000,000 Delaware Funding Corporation 2.840 5/6/2005 24,988,167
5,000,000 Delaware Funding Corporation 2.880 5/9/2005 4,996,400
25,000,000 Delaware Funding Corporation 3.000 5/17/2005 24,964,583
27,550,000 Delaware Funding Corporation 3.000 5/19/2005 27,506,379
12,332,000 Edison Asset Securitization, LLC 2.850 5/6/2005 12,326,142
25,000,000 Edison Asset Securitization, LLC 3.100 8/12/2005 24,776,111
25,000,000 Falcon Asset Securitization Corporation 2.840 5/11/2005 24,978,305
22,000,000 Falcon Asset Securitization Corporation 2.960 5/23/2005 21,958,396
25,000,000 Fountain Square Commercial Funding Corporation 3.040 6/27/2005 24,877,556
25,489,000 Galaxy Funding, Inc. 2.980 5/2/2005 25,484,780
15,000,000 Galaxy Funding, Inc. 3.000 6/17/2005 14,940,000
30,000,000 Galaxy Funding, Inc. 3.010 6/20/2005 29,872,075
25,000,000 Galaxy Funding, Inc. 3.040 6/28/2005 24,875,444
25,000,000 Grampian Funding, LLC 3.000 5/31/2005 24,935,417
15,000,000 Grampian Funding, LLC 3.170 9/13/2005 14,820,367
20,000,000 HSBC Finance Corporation 2.680 5/2/2005 19,997,022
22,500,000 Jupiter Securitization Corporation 2.950 5/2/2005 22,496,500
20,000,000 Jupiter Securitization Corporation 2.950 5/12/2005 19,980,333
14,124,000 Jupiter Securitization Corporation 2.900 5/13/2005 14,109,209
29,993,000 Jupiter Securitization Corporation 2.880 5/16/2005 29,954,609
22,327,000 Jupiter Securitization Corporation 2.950 5/19/2005 22,292,238
25,000,000 Kitty Hawk Funding Corporation 2.910 5/16/2005 24,967,667
25,000,000 Kitty Hawk Funding Corporation 3.000 5/23/2005 24,952,083
15,000,000 Nieuw Amsterdam Receivables 2.930 5/18/2005 14,978,025
51,266,000 Nieuw Amsterdam Receivables 2.960 5/20/2005 51,181,835
20,000,000 Nieuw Amsterdam Receivables 3.010 5/23/2005 19,961,539
23,000,000 Nieuw Amsterdam Receivables 3.000 5/24/2005 22,954,000
24,772,000 Old Line Funding Corporation 2.960 5/5/2005 24,761,816
15,000,000 Park Avenue Receivables Corporation 3.000 5/6/2005 14,992,500
25,000,000 Park Avenue Receivables Corporation 3.000 5/25/2005 24,947,917
30,000,000 Preferred Receivables Funding Corporation 2.950 5/2/2005 29,995,083
4,142,000 Preferred Receivables Funding Corporation 2.930 5/17/2005 4,136,269
25,000,000 Ranger Funding Company, LLC 2.840 5/5/2005 24,990,139
2,041,000 Ranger Funding Company, LLC 2.890 5/6/2005 2,040,017
25,000,000 Ranger Funding Company, LLC 3.020 5/25/2005 24,947,569
26,891,000 Ranger Funding Company, LLC 2.940 6/15/2005 26,789,980
55,000,000 Sheffield Receivables Corporation 2.800 5/2/2005 54,991,458
15,810,000 Sheffield Receivables Corporation 2.920 5/10/2005 15,797,176
20,000,000 Sheffield Receivables Corporation 2.960 5/24/2005 19,960,533
25,000,000 Sheffield Receivables Corporation 3.020 5/25/2005 24,947,569
20,000,000 Sheffield Receivables Corporation 3.000 5/26/2005 19,956,667
25,000,000 Societe Generale North American 2.890 5/2/2005 24,995,986
25,000,000 Solitaire Funding, LLC 2.970 5/3/2005 24,993,812
25,000,000 Solitaire Funding, LLC 3.000 5/26/2005 24,945,833
25,000,000 Solitaire Funding, LLC 3.010 5/27/2005 24,943,562
25,000,000 Solitaire Funding, LLC 3.040 6/30/2005 24,871,222
25,000,000 Thunder Bay Funding, Inc. 2.900 5/9/2005 24,982,313
15,526,000 Thunder Bay Funding, Inc. 3.000 5/16/2005 15,505,299
3,616,000 Thunder Bay Funding, Inc. 2.980 6/1/2005 3,606,422
11,653,000 Thunder Bay Funding, Inc. 3.020 6/20/2005 11,603,145
25,000,000 Triple A-1 Funding Corporation 2.990 5/12/2005 24,975,083
20,000,000 Triple A-1 Funding Corporation 2.880 5/13/2005 19,979,200
7,072,000 Triple A-1 Funding Corporation 2.950 5/16/2005 7,062,728
6,238,000 Triple A-1 Funding Corporation 3.000 5/25/2005 6,225,004
16,057,000 Triple A-1 Funding Corporation 3.030 6/10/2005 16,001,590
25,000,000 Triple A-1 Funding Corporation 3.090 7/20/2005 24,826,187
25,000,000 Tulip Funding Corporation 3.020 5/31/2005 24,934,986
25,000,000 Windmill Funding I Corporation 2.950 5/11/2005 24,977,465
20,000,000 Windmill Funding I Corporation 2.920 5/26/2005 19,957,822
- ------------------------------------------------------------------------------------------------------------
Total Finance 1,553,312,059
============================================================================================================
Insurance (6.2%)
25,000,000 AIG Funding, Inc. 2.800 5/4/2005 24,992,222
25,000,000 AIG Funding, Inc. 2.940 5/20/2005 24,959,167
30,000,000 AIG Funding, Inc. 3.000 5/23/2005 29,942,500
25,000,000 AIG Funding, Inc. 3.020 5/31/2005 24,934,986
17,000,000 Allstate Financial Global Funding (c) 3.170 6/20/2005 17,016,990
19,626,000 American Family Financial Services, Inc. 2.660 5/19/2005 19,598,447
5,000,000 Aquinas Funding, LLC 2.950 5/17/2005 4,993,035
20,000,000 Swiss Reinsurance Company 2.850 6/20/2005 19,919,250
16,000,000 Torchmark Corporation 2.810 5/2/2005 15,997,502
14,000,000 Torchmark Corporation 2.860 5/4/2005 13,995,563
7,000,000 Torchmark Corporation 2.840 5/5/2005 6,997,239
13,000,000 Torchmark Corporation 2.850 5/6/2005 12,993,825
15,000,000 Torchmark Corporation 3.040 5/20/2005 14,974,667
8,200,000 Torchmark Corporation 3.040 5/23/2005 8,184,074
5,000,000 Torchmark Corporation 3.040 5/24/2005 4,989,867
- ------------------------------------------------------------------------------------------------------------
Total Insurance 244,489,334
- ------------------------------------------------------------------------------------------------------------
Total Commercial Paper 3,204,025,321
============================================================================================================
Principal Interest Maturity
Amount Other (2.5%) Rate (b) Date Value
- ------------------------------------------------------------------------------------------------------------
$1,015,000 Morgan Stanley Institutional Liquidity Fund 2.770% N/A $1,015,000
96,625,000 Barclays Prime Money Market Fund 2.840 N/A 96,625,000
500,000 Reserve Primary Fund 2.660 N/A 500,000
- ------------------------------------------------------------------------------------------------------------
Total Other 98,140,000
============================================================================================================
Principal Interest Maturity
Amount U.S. Municipal (1.3%) Rate (b) Date Value
- ------------------------------------------------------------------------------------------------------------
$50,000,000 New Jersey Economic Development Authority Lease 3.040% 5/4/2005 $50,000,000
Revenue State Pension Funding Revenue Bonds (c)
- ------------------------------------------------------------------------------------------------------------
Total U.S. Municipal 50,000,000
============================================================================================================
Principal Interest Maturity
Amount U. S. Government (6.4%) Rate (b) Date Value
- ------------------------------------------------------------------------------------------------------------
$13,700,000 Federal Home Loan Bank (c) 2.870% 5/16/2005 $13,697,844
9,000,000 Federal Home Loan Bank 1.500 8/26/2005 8,974,776
10,000,000 Federal Home Loan Bank 2.250 10/18/2005 9,991,408
13,000,000 Federal Home Loan Bank 2.500 11/2/2005 13,000,000
25,000,000 Federal Home Loan Mortgage Corporation 2.049 5/2/2005 24,997,222
25,000,000 Federal Home Loan Mortgage Corporation 1.706 5/16/2005 24,977,334
23,000,000 Federal Home Loan Mortgage Corporation 2.112 8/5/2005 22,867,690
5,000,000 Federal National Mortgage Association (c) 2.970 5/2/2005 5,000,186
50,000,000 Federal National Mortgage Association (c) 2.870 5/17/2005 49,994,117
45,000,000 Federal National Mortgage Association (c) 2.947 5/31/2005 44,990,428
25,000,000 Federal National Mortgage Association (c) 3.025 7/21/2005 24,991,446
10,000,000 Federal National Mortgage Association 2.369 9/16/2005 9,908,684
- ------------------------------------------------------------------------------------------------------------
Total U.S. Government 253,391,135
- ------------------------------------------------------------------------------------------------------------
Total Investments (at amortized cost) $3,937,274,546
============================================================================================================
(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) The market value of the denoted categories of investments represents
less than 0.1% of the total investments of the Thrivent Financial
Securities Lending Trust
The accompanying notes to the financial statements are an integral part
of this schedule.
STATEMENT OF ASSETS AND LIABILITIES
AS OF APRIL 29, 2005 (UNAUDITED)
Thrivent Financial Securities Lending Trust
- -------------------------------------------------------------------
Assets
Investments at cost $3,937,274,546
Investments at value 3,937,274,546
Cash 7,751
Dividend and interest receivable 2,516,332
- -------------------------------------------------------------------
Total Assets 3,939,798,629
===================================================================
Liabilities
Distributions Payable 9,142,796
Accrued expenses 10,834
Payable for investments purchased 23,374,362
Payable to affiliate 139,449
- -------------------------------------------------------------------
Total Liabilities 32,667,441
===================================================================
Net Assets
Capital Stock (beneficial interest) 3,907,125,480
Accumulated undistributed net realized gain
on investments 5,708
- -------------------------------------------------------------------
Total Net Assets $3,907,131,188
===================================================================
Net Assets $3,907,131,188
Shares of beneficial interest outstanding 3,907,125,480
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 SIX MONTHS ENDED APRIL 29, 2005 (UNAUDITED)
Thrivent Financial Securities Lending Trust
- -------------------------------------------------------------------
Investment Income
Dividends $1,393,112
Taxable interest 45,203,387
Tax exempt interest 253,871
- -------------------------------------------------------------------
Total Investment Income 46,850,370
===================================================================
Expenses
Adviser fee 869,305
Accounting and pricing fees 27,224
Audit and legal fees 11,854
Custody fees 42,951
Printing and Postage fees 3,762
Transfer agent fees 21,490
Trustees' fees and insurance expenses 9,273
Other expenses 5,185
- -------------------------------------------------------------------
Total Expenses Before Reimbursement 991,044
===================================================================
Less:
Reimbursement from adviser (24,033)
Custody Earnings Credit (1,117)
- -------------------------------------------------------------------
Total Net Expenses 965,894
===================================================================
Net Investment Income 45,884,476
===================================================================
Realized and Unrealized Gains/(Losses) on Investments
Net realized gains on investments 5,710
- -------------------------------------------------------------------
Net Realized and Unrealized Gains on Investments 5,710
===================================================================
Net Increase in Net Assets Resulting From Operations $45,890,186
===================================================================
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
For the Six Months Period From
Ended 4/29/2005 9/16/2004
(unaudited) (inception) to
10/31/2004
- -------------------------------------------------------------------
Operations
Net investment income $45,884,476 $8,331,936
Net realized gains on investments 5,710 5,562
- -------------------------------------------------------------------
Net Increase in Net Assets Resulting
From Operations 45,890,186 8,337,498
===================================================================
Distributions to Shareholders
From net investment income (45,884,476) (8,331,936)
From net realized gains (5,564) --
- -------------------------------------------------------------------
Total Distributions to Shareholders (45,890,040) (8,331,936)
===================================================================
Capital Stock Transactions (35,216,219) 3,942,341,699
===================================================================
Net Increase in Net Assets (35,216,073) 3,942,347,261
===================================================================
Net Assets Beginning of Period 3,942,347,261 --
===================================================================
Net Assets End of Period $3,907,131,188 $3,942,347,261
===================================================================
The accompanying notes to the financial statements are an integral part
of this statement.
NOTES TO FINANCIAL STATEMENTS
AS OF APRIL 29, 2005 (UNAUDITED)
Thrivent Financial Securities Lending Trust
A. Organization
The Thrivent Financial Securities Lending Trust (the "Trust") was
organized as a Massachusetts Business Trust on August 5, 2004 and is
registered as an open-end management investment company under the
Investment Company Act of 1940. The Trust commenced operations on
September 16, 2004. All transactions in the Trust are from Affiliates
of the Trust.
Under the Trust's organizational documents, its officers and trustees
are indemnified against certain liabilities arising out of the
performance of their duties to the Trust. In addition, in the normal
course of business, the Trust enters into contracts with vendors and
others that provide general damage clauses. The Trust's maximum exposure
under these contracts is unknown, as this would involve future claims
that may be made against the Trust. However, based on experience, the
Trust expects the risk of loss to be remote.
B. Significant Accounting Policies
Valuation - Securities are valued on the basis of amortized cost (which
approximates value), whereby a portfolio security is valued at its cost
initially, and thereafter valued to reflect a constant amortization to
maturity of any discount or premium.
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.
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 $2,571 in fees
from the Trust for the six months ended April 29, 2005. No remuneration
has been paid by the Trust to any of the officers or affiliated Trustees
of the Trust. In addition, the Trust reimbursed certain reasonable
expenses incurred in relation to attendance at the meetings.
The Adviser has 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.
E. Trust Transactions
Transactions in trust shares were as follows:
Shares Amount
Period from September 16, 2004
to October 31, 2004
Sold 4,630,139,403 $4,630,139,403
Redeemed (687,797,704) (687,797,704)
------------- --------------
Net Change 3,942,341,699 $3,942,341,699
============= ==============
For the Six Months Ended
April 29, 2005
Sold 6,385,178,628 $6,385,178,628
Redeemed (6,420,394,847) (6,420,394,847)
------------- --------------
Net Change (35,216,219) $(35,216,219)
============= ==============
FINANCIAL HIGHLIGHTS
PER SHARE INFORMATION (a)
Thrivent Financial Securities Lending Trust
For the Six Period From
Months Ended 9/16/2004
4/29/2005 (inception)
(unaudited) To 10/31/2004
- -------------------------------------------------------------------
Net asset value: Beginning
of Period $1.00 $1.00
Income from Investment Operations:
Net investment income 0.01 0.00
Net realized and unrealized gain/(loss) on
investments (b) -- --
- -------------------------------------------------------------------
Total from Investment Operations 0.01 0.00
===================================================================
Distributions from:
Net investment income (0.01) 0.00
- -------------------------------------------------------------------
Total Distributions (0.01) 0.00
===================================================================
Net asset value: End of Period $1.00 $1.00
===================================================================
Total return (c) 1.17% 0.22%
Net assets: end of period
(in thousands) $3,907.1 $3,942.3
Ratio of expenses to average
net assets (d) 0.05% 0.05%
Ratio of net investment income to
average net assets (d) 2.38% 1.80%
Portfolio turnover rate N/A 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% 0.05%
Ratio of net investment income to
average net assets (d) 2.37% 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). Since the Trust
did not commence operations until September 16, 2004, the Trust has not
yet filed a report on how it voted proxies relating to portfolio
securities.
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 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.
This report is submitted for the information of shareholders of Thrivent
Financial Securities Lending Trust. It is not authorized for
distribution to prospective investors unless preceded or accompanied by
the current prospectus for Thrivent Financial Securities Lending Trust,
which contains more complete information about the Trust, including
investment policies, charges and expenses.
[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
- ------------------------------------------------------------------------
Not applicable to semiannual report
Item 3. Audit Committee Financial Expert
- ------------------------------------------------------------------------
Not applicable to semiannual report
Item 4. Principal Accountant Fees and Services
- ------------------------------------------------------------------------
Not applicable to semiannual report
Item 5. Audit Committee of Listed Registrants
- ------------------------------------------------------------------------
Not applicable.
Item 6. Schedule of Investments
- ------------------------------------------------------------------------
Registrant's Schedule of Investments is included in the report to
shareholders filed under Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
- ------------------------------------------------------------------------
Management Investment Companies
- -------------------------------
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
- ------------------------------------------------------------------------
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
- ------------------------------------------------------------------------
Company and Affiliated Purchasers.
- ----------------------------------
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
- ------------------------------------------------------------------------
There have been no material changes to the procedures by which shareholders
may recommend nominees to registrant's board of trustees.
Item 11. Controls and Procedures
- ------------------------------------------------------------------------
(a)(i) Registrant's President and Treasurer have concluded that registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act) are effective, based on their evaluation of these
controls and procedures as of a date within 90 days of the filing date of
this report.
(a)(ii) There has been no change in registrant's internal controls over
financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act) that occurred during registrant's most recent fiscal quarter
that has materially affected, or is reasonably likely to materially affect,
registrant's internal control over financial reporting.
Item 12. Exhibits
- ------------------------------------------------------------------------
(a) Certifications pursuant to Rules 30a-2(a) and 30a-2(b) under the
Investment Company Act of 1940 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: June 22, 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.
Date: June 22, 2005 By: /s/ Pamela J. Moret
-------------------
Pamela J. Moret
President
Date: June 22, 2005 By: /s/ Randall L. Boushek
----------------------
Randall L. Boushek
Treasurer