Thrivent High Yield Fund Class S (LBHIX)

Overview

The fund described operates primarily within the high-yield investment sector, focusing on securities that are considered to be of higher risk and potentially higher reward. Its primary investment strategy involves dedicating at least 80% of its net assets, in addition to any funds borrowed for investment purposes, towards acquiring a diversified portfolio of high-risk bonds and other similar debt obligations. These investments include a wide range of financial instruments such as leveraged loans, mortgage-backed securities, convertible bonds, convertible stock, and preferred stocks. Such securities are colloquially known as "junk bonds" due to their high yield and high-risk nature, stemming from the issuers' lower credit quality compared to investment-grade bonds. This approach indicates a focus on seeking higher returns through investments that are considered to be below investment grade. The fund's strategy implies a tolerance for risk in pursuit of potential rewards, making it an option for investors who are seeking to diversify their portfolio with high-yield, high-risk assets.

Products and Services

• High Yield, High Risk Bonds

  These are bonds issued by entities that are considered to have a higher risk of default compared to more stable, investment-grade issuers. Despite this risk, they offer the potential for higher returns, making them an attractive option for certain investors.

• Leveraged Loans

  A type of loan that is extended to companies or individuals that already have considerable amounts of debt or a poor credit history. Leveraged loans carry a higher risk of default and, as such, offer higher interest rates to compensate investors for this risk.

• Mortgage-Backed Securities (MBS)

  These are investments that are secured by mortgages. They allow investors to benefit from the interest payments made on the underlying mortgage loans. While they can offer higher yields, they also come with the risk of defaults on the underlying loans.

• Convertible Bonds and Convertible Stock

  Convertible bonds and stocks are unique in that they offer the potential for conversion into a predetermined amount of the issuer's common stock. This feature can make them an attractive choice for investors looking for the potential for capital appreciation in addition to income.

• Preferred Stocks

  These are stocks that have a higher claim on assets and earnings than common stocks. Preferred stocks typically provide fixed dividends, which can make them resemble bonds in some ways, but they may also offer conversion features or other benefits.