Summary

• During the first quarter, Thrivent Short-Term Bond Fund underperformed the Bloomberg U. S. Government/Credit 1-3 Year Bond Index by 0.09% as corporate markets priced in potential economic dislocations.
• This underperformance was largely attributable to an overweight to corporates as spreads widened on concerns including the impact of AI and private credit exposure to software companies.
• The most significant driver of the Fund's 12-month outperformance was a significant overweight to risk assets, which offered higher carry over the time period.
• Thrivent Short-Term Bond Fund currently holds approximately 66% of its assets in corporate bonds, with an average ratings quality of Baa1/BBB+, which is still strongly investment-grade rated.
• Since the beginning of the conflict in Iran and with oil prices above $100/barrel, the market is no longer pricing in cuts to the Fed Funds rate in 2026.

Executive Summary

• During the first quarter, Thrivent Short-Term Bond Fund underperformed the Bloomberg U. S. Government/Credit 1-3 Year Bond Index by 0.09%. The quarter was marked by elevated volatility relative to the second half of 2025, as the

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