Thrivent Municipal Bond Fund, with a -0.16% return, outperformed the Bloomberg Municipal Bond Index by 2 basis points for the first quarter of 2026.
The Fund lagged for the trailing 12-month period with a 3.28% total return versus a 4.29% total return for the index.
The Fund's quarterly performance benefited from a barbell structure with larger allocations to the front end and long end of the yield curve and with lower exposure in the 5- to 15-year part of the municipal yield curve.
Gas pre-pay bonds had a rough quarter with the intermediate part of the municipal yield curve widening, combined with sector spread widening.
BBB- and A-rated bonds outperformed higher grade AAA- and AA-rated bonds providing a boost to the Fund's performance in the first quarter.
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Management
Johan Åkesson, CFA
Senior Portfolio Manager
Industry: 1993
Fund: 2022
Stephanie Woepfel
Senior Portfolio Manager
Industry: 2004
Fund: 2023
Performance factors
Geopolitical events continue to cause tumult in global credit markets, and the municipal market
