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 voting instruction 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 Series Fund, Inc. |
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Investment Objective |
|
Target Portfolio |
Acquiring Portfolio |
The Portfolio seeks a high level of current income and, secondarily, growth of capital. The Portfolio's investment objectives may be changed without shareholder approval. |
The Portfolio seeks a combination of current income and long-term capital appreciation. |
Principal Strategies |
|
Target Portfolio |
Acquiring Portfolio |
The Portfolio seeks to achieve its investment objectives by allocating assets across multiple income and growth producing asset classes and strategies. Debt securities in which the Portfolio 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 Portfolio will also implement its investment strategy by investing in convertible bonds and U.S. dollar denominated emerging markets sovereign debt. The Portfolio 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 Portfolio 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 Portfolio may invest in other
securities such as investment-grade |
Under normal circumstances, the Portfolio primarily invests in a broad range of debt securities. The debt securities in which the
Portfolio 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 Portfolio
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 Portfolio utilizes derivatives
primarily in the form of U.S. Treasury
futures contracts in order to manage
the Portfolio’s duration, or interest rate
risk. The Portfolio may enter into
derivatives contracts traded on
exchanges or in the over the counter market. The Portfolio may invest in foreign
securities, including those of issuers
in emerging markets. An “emerging |
Principal Strategies |
|
Target Portfolio |
Acquiring Portfolio |
corporate bonds, asset-backed securities, and mortgage-backed securities. The Portfolio utilizes derivatives primarily in the form of U.S. Treasury futures contracts in order to manage the Portfolio’s duration, or interest rate risk. The Portfolio 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 Portfolio 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 Portfolio |
Acquiring Portfolio |
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 Portfolio |
Acquiring Portfolio |
Acquiring Portfolio
(assuming merger with
Target Portfolio) |
Maximum Sales Charge (load) Imposed on Purchases (as a % of offering price) |
N/A |
N/A |
N/A |
Maximum Deferred Sales Charge (load) (as a % of the net asset value) |
N/A |
N/A |
N/A |
Annual Portfolio Operating Expenses (expenses that you pay each year
as a percentage of the value of your investment) | |||
|
Actual |
Pro Forma | |
|
Target Portfolio |
Acquiring Portfolio |
Acquiring Portfolio
(assuming merger with
Target Portfolio) |
Management Fees |
0.55% |
0.50% |
0.50% |
Other Expenses |
0.38% |
0.17% |
0.13% |
Acquired Fund Fees and Expenses |
0.19% |
0.03% |
0.03% |
Total Annual Portfolio Operating Expenses |
1.12% |
0.70% |
0.66% |
Less Fee Waivers and/or Expense Reimbursements(1) |
0.14% |
None |
None |
Total Annual Portfolio Operating Expenses After Fee Waivers and/or Expense Reimbursements |
0.98% |
0.70% |
0.66% |
|
Actual |
Pro Forma | |
|
Target Portfolio |
Acquiring Portfolio |
Acquiring Portfolio
(assuming merger with the
Target Portfolio) |
One Year |
$100 |
$72 |
$67 |
Three Years |
$342 |
$224 |
$211 |
Five Years |
$603 |
$390 |
$368 |
Ten Years |
$1,351 |
$871 |
$822 |
|
Actual |
Pro Forma | |
|
Target Portfolio |
Acquiring Portfolio |
Acquiring Portfolio
(assuming merger with the
Target Portfolio) |
Net Assets |
$46,847,245 |
$162,032,807 |
$208,880,052 |
Net Asset Value Per Share |
$9.62 |
$8.95 |
$8.95 |
Shares Outstanding |
4,868,669 |
18,095,361 |
23,327,118 |
|
Target Portfolio | ||
|
1 Year |
5 Years |
Since Inception
4/28/2017 |
Portfolio (before taxes) |
8.37% |
3.88% |
2.58% |
Bloomberg U.S. Corporate High Yield Bond Index (reflects no deduction for fees, expenses or taxes) |
13.45% |
5.37% |
4.20% |
Bloomberg Emerging Markets USD Sovereign Index (reflects no deduction for fees, expenses or taxes) |
10.96% |
1.30% |
0.86% |
S&P U.S. Preferred Stock Total Return Index (reflects no deduction for fees, expenses or taxes) |
12.02% |
4.23% |
2.85% |
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Acquiring Portfolio | ||
|
1 Year |
5 Years |
10 Years |
Portfolio (before taxes) |
8.94% |
2.37% |
2.51% |
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% |
Shareholder |
Shares Outstanding |
Approximate Percentage of Ownership |
Thrivent Financial for Lutherans ATTN: Securities Operations 901 Marquette Ave Suite 2500 Minneapolis MN 55402-3211 |
4,721,421.64 |
100% |
Shareholder |
Shares Outstanding |
Approximate Percentage of Ownership |
Thrivent Financial for Lutherans ATTN: Securities Operations 901 Marquette Ave Suite 2500 Minneapolis MN 55402-3211 |
18,044,252.27 |
100% |
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Proposed Reorganization |
3 |
Additional Information About the Portfolios |
3 |
Supplemental Financial Information |
3 |
Appendix A – Schedule of Surrender Charges |
4 |
Contract Year: |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
Surrender Charge: |
7% |
7% |
6% |
5% |
4% |
3% |
2% |
Contract Year: |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
Surrender Charge: |
7% |
6% |
5% |
4% |
3% |
2% |
1% |
Contract Year: |
1 |
2 |
3 |
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Surrender Charge: |
2% |
1% |
1% |
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Contract Year: |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
Surrender Charge: |
7% |
6% |
5% |
4% |
3% |
2% |
1% |
Contract Year: |
1 |
2 |
3 |
4 |
5 |
6 |
|
Surrender Charge: |
6% |
5% |
4% |
3% |
2% |
1% |
|
Contract Year: |
1 |
2 |
3 |
4 |
5 |
6 |
|
Surrender Charge: |
6% |
5% |
4% |
3% |
2% |
1% |
|