Thrivent Multisector Bond Fund had a net return of 0.01% in the first quarter, which outperformed the Morningstar Multisector Bond category average by 0.24%.
The Fund remains slightly long in duration positioning, and management favors investment grade bonds to high yield bonds given the overall tightness of credit spreads.
Absolute returns were roughly flat primarily due to positive coupon carry being offset by higher base rates and wider credit spreads.
Security selection within the securitized bond and emerging market debt allocations were also positive contributors to performance.
Thrivent management plans to maintain a slightly long duration positioning in the Fund with a bias towards possibly extending duration further if there are meaningful backups in rates.
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Executive Summary
• Thrivent Multisector Bond Fund had a net return of 0.01% in the first quarter, which outperformed the Morningstar Multisector Bond category average by 0.24%.
• The Fund outperformed the Morningstar Multisector Bond category
