Summary
- Thrivent Income Fund outperformed the Bloomberg U.S. Corporate Bond Index by 0.06% during the fourth quarter.
- The Fund’s outperformance was driven largely by a positive contribution from security selection in investment grade corporate bonds. The Fund also benefitted from an overweight position in US Treasuries.
- During the quarter the Fund began to position even more defensively in certain parts of the corporate bond market where we believe valuations had become rich and further increased our allocation to higher quality sectors of the bond market, including US Treasuries and high-quality securitized assets.
- While we do not currently find much value in credit spreads (the difference in yield between a corporate bond and a similar maturity US Treasury bond), we do believe absolute yield levels for investment grade corporate bonds remain attractive.
AndreyPopov
Performance factors
Thrivent Income Fund outperformed the Bloomberg U.S. Corporate Bond Index by 0.06% during the first quarter. The Fund’s outperformance was driven largely by a positive contribution from security selection in investment grade corporate bonds. The Fund also benefitted from an
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