Thrivent Government Bond Fund Class S (TBFIX)

Overview

The fund focuses on investing a significant portion of its assets, specifically at least 80%, in U.S. government bonds. These investments are aimed at securities that are either issued or guaranteed by the United States government or its various agencies and instrumentalities. This includes a broad spectrum of debt instruments, such as U.S. Treasuries, Treasury Inflation-Protected Securities (TIPS), and debt from different U.S. government agencies. Additionally, it extends to mortgage-backed securities that are issued or guaranteed by prominent organizations like GNMA (Ginnie Mae), FNMA (Fannie Mae), and FHLMC (Freddie Mac). The fund's strategy involves utilizing borrowings for investment purposes to manage and expand its portfolio, targeting the specific sector of government-backed securities to potentially offer investors a blend of income and security.

Products and Services

• U.S. Treasuries

  These are debt securities issued by the U.S. Department of the Treasury. U.S. Treasuries are considered one of the safest investments as they are backed by the full faith and credit of the United States government, making them a cornerstone of the fund's investment strategy for providing stability and reliable income.

• TIPS (Treasury Inflation-Protected Securities)

  TIPS are a type of U.S. Treasury security designed to protect against inflation. The principal value of TIPS increases with inflation and decreases with deflation, which is reflected in the interest payments that investors receive. This makes TIPS an important component of the fund's strategy for preserving the purchasing power of its investors' capital.

• U.S. Government Agency Debt

  This encompasses debt instruments issued by various U.S. government agencies and instrumentalities. Although not backed by the full faith and credit of the United States government to the same extent as U.S. Treasuries, these securities still carry a high credit rating and offer a higher yield, contributing to the fund’s income generation and diversification.

• Mortgage-Backed Securities (MBS)

  MBS are investments that represent claims on the cash flows from pools of mortgage loans, most commonly on residential property. MBS issued or guaranteed by GNMA (Ginnie Mae), FNMA (Fannie Mae), and FHLMC (Freddie Mac) are an integral part of the fund's portfolio, offering the benefits of securitization while being supported by the respective government agencies. This adds a layer of creditworthiness and enhances the fund's yield and income stability.