Michael W. Kremenak |
President |
Your vote is important. No matter how many shares you own and regardless of whether you
plan to attend the Meeting, please promptly return
your proxy card, or record your voting instructions
by Internet or phone, to avoid the additional expense of further solicitation. |
John D. Jackson |
Secretary and Chief Legal Officer |
Thrivent Mutual Funds |
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Investment Objective |
|
Target Fund |
Acquiring Fund |
The Fund seeks a high level of current income and, secondarily, growth of capital. The Fund's investment objective may be changed without shareholder approval. |
The Fund seeks a high level of current income, consistent with capital preservation. |
Principal Strategies |
|
Target Fund |
Acquiring Fund |
The Fund seeks to achieve its investment objectives by allocating assets across multiple income and growth producing asset classes and strategies. Debt securities in which the Fund invests include high yield, high risk bonds, notes, debentures and other debt obligations commonly known as “junk bonds.” At the time of purchase, these high-yield securities are rated below BBB- by S&P, or Baa3 by Moody's, or unrated but considered to be of comparable quality by the Adviser. The Fund will also implement its investment strategy by investing in convertible bonds and U.S. dollar denominated emerging markets sovereign debt. The Fund also plans to invest in
income-producing equity securities
such as preferred stock, shares of
closed-end funds (“CEFs”), and
exchange-traded funds (“ETFs”).
CEFs and ETFs are investment
companies that trade on a stock
exchange and may trade at a
premium or a discount to their net
asset value. The Fund may also
pursue its investment strategy by
investing in other mutual funds
including funds managed by the
Adviser or an affiliate and unaffiliated funds. The Fund may invest in other |
Under normal circumstances, the Fund primarily invests in a broad range of debt securities. The debt securities in which the Fund
invests may be of any maturity or
credit quality, including high yield,
high risk bonds, notes, debentures
and other debt obligations commonly
known as “junk bonds.” At the time of
purchase, these high-yield securities
are rated below BBB- by S&P, or Baa3
by Moody's, or unrated but
considered to be of comparable
quality by the Adviser. The Fund may
also invest in investment-grade
corporate bonds, asset-backed
securities, mortgage-backed
securities (including commercially
backed ones), sovereign and
emerging market debt (both U.S.
dollar and non-U.S. dollar
denominated), preferred stock, and other types of securities. The Fund utilizes derivatives primarily
in the form of U.S. Treasury futures
contracts in order to manage the
Fund’s duration, or interest rate risk.
The Fund may enter into derivatives
contracts traded on exchanges or in the over the counter
market. The Fund may invest in foreign
securities, including those of issuers
in emerging markets. An “emerging |
Principal Strategies |
|
Target Fund |
Acquiring Fund |
securities such as investment-grade corporate bonds, asset-backed securities, and mortgage-backed securities. The Fund utilizes derivatives primarily in the form of U.S. Treasury futures contracts in order to manage the Fund’s duration, or interest rate risk. The Fund may enter into derivatives contracts traded on exchanges or in the over the counter market. The Adviser uses fundamental and
other investment research techniques
to determine what to buy and sell.
Fundamental techniques assess a
security’s value based on an issuer’s
financial profile, management, and
business prospects. |
market” country is any country determined by the Adviser to have an emerging market economy, considering factors such as the country’s credit rating, its political and economic stability and the development of its financial and capital markets. The Fund may also pursue its
investment strategy by investing in
mutual funds managed by the Adviser or an affiliate. The Adviser uses fundamental and
other investment research techniques
to determine what to buy and sell.
Fundamental techniques assess a
security’s value based on an issuer’s
financial profile, management, and
business prospects. |
Risk |
Target Fund |
Acquiring Fund |
Allocation Risk |
|
X |
Closed-End Fund Risk |
X |
|
Conflicts of Interest Risk |
X |
X |
Convertible Securities Risk |
X |
|
Credit Risk |
X |
X |
Derivatives Risk |
X |
X |
Emerging Markets Risk |
X |
X |
ETF Risk |
X |
|
Foreign Securities Risk |
X |
X |
Government Securities Risk |
X |
|
High Yield Risk |
X |
X |
Interest Rate Risk |
X |
X |
Investment Adviser Risk |
X |
X |
Issuer Risk |
X |
X |
Liquidity Risk |
X |
X |
Market Risk |
X |
X |
Mortgage-Backed and Other Asset-Backed Securities Risk |
X |
X |
Other Funds Risk |
X |
X |
Preferred Securities Risk |
X |
|
Prepayment Risk |
|
X |
Sovereign Debt Risk |
X |
X |
Shareholder Fees (fees directly paid from your investment) | |||
|
Actual |
Pro Forma | |
|
Target Fund |
Acquiring Fund |
Acquiring Fund (assuming
merger with Target Fund)
|
Maximum Sales Charge (load) Imposed on Purchases (as a % of offering price) |
None |
None |
None |
Maximum Deferred Sales Charge (load) (as a % of the net asset value) |
None |
None |
None |
Annual Fund Operating Expenses (expenses that you pay each year as a
percentage of the value of your investment) | |||
|
Actual |
Pro Forma | |
|
Target Fund |
Acquiring Fund |
Acquiring Fund (assuming
merger with Target Fund)
|
Management Fees |
0.55% |
0.44% |
0.43% |
Other Expenses |
0.53% |
0.20% |
0.20% |
Acquired Fund Fees and Expenses |
0.19% |
0.03% |
0.03% |
Total Annual Fund Operating Expenses |
1.27% |
0.67% |
0.66% |
Less Fee Waivers and/or Expense Reimbursements(1) |
0.33% |
None |
None |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.94% |
0.67% |
0.66% |
|
Actual |
Pro Forma | |
|
Target Fund |
Acquiring Fund |
Acquiring Fund (assuming
merger with the Target Fund)
|
One Year |
$96 |
$68 |
$67 |
Three Years |
$370 |
$214 |
$211 |
Five Years |
$665 |
$373 |
$368 |
Ten Years |
$1,505 |
$835 |
$822 |
|
Actual |
Pro Forma | |
|
Target Fund |
Acquiring Fund |
Acquiring Fund (assuming
merger with the Target Fund)
|
Net Assets |
$51,892,219 |
$565,440,359 |
$617,332,579 |
Net Asset Value Per Share |
$8.80 |
$8.98 |
$8.98 |
Shares Outstanding |
5,893,800 |
62,989,635 |
68,770,403 |
|
Target Fund | ||
|
1 Year |
5 Years |
Since Inception
2/28/2017 |
Class S (before taxes) |
8.51% |
3.86% |
2.69% |
Class S (after taxes on distributions) |
6.57% |
2.15% |
0.98% |
Class S (after taxes on distributions and redemptions) |
5.09% |
2.33% |
1.40% |
Bloomberg U.S. Corporate High Yield Bond Index (reflects no deduction for fees, expenses or taxes) |
13.45% |
5.37% |
4.24% |
Bloomberg Emerging Markets USD Sovereign Index (reflects no deduction for fees, expenses or taxes) |
10.96% |
1.30% |
1.15% |
S&P U.S. Preferred Stock Total Return Index (reflects no deduction for fees, expenses or taxes) |
12.02% |
4.23% |
3.06% |
|
Acquiring Fund | ||
|
1 Year |
5 Years |
10 Years |
Class S (before taxes) |
8.83% |
2.30% |
2.57% |
Class S (after taxes on distributions) |
6.67% |
0.70% |
0.94% |
Class S (after taxes on distributions and redemptions) |
5.19% |
1.09% |
1.25% |
Bloomberg U.S. Mortgage-Backed Securities Index (reflects no deduction for fees, expenses or taxes) |
5.05% |
0.25% |
1.38% |
Bloomberg U.S. High Yield Ba/B 2% Issuer Capped Index (reflects no deduction for fees, expenses or taxes) |
12.56% |
5.49% |
4.64% |
Name |
Shares Outstanding |
Approximate Percentage of Ownership |
National Financial Svcs LLC For the Exclusive Benefit of Our Customers 499 Washington Blvd Fl 4 Jersey City NJ 07310-2010 |
2,259,331.02 |
38.28% |
Name |
Shares Outstanding |
Approximate Percentage of Ownership |
National Financial Svcs Corp For the Exclusive Benefit of our Customers FBO 499 Washington Blvd Fl 5 Jersey City NJ 07310-2010 |
46,162,113.93 |
73.29%(1) |
|
Page |
Proposed Reorganization |
3 |
Additional Information About the Funds |
3 |
Supplemental Financial Information |
3 |