Summary

• The Thrivent Small Cap Stock Fund underperformed the Russell 2000 Index over the last quarter and the past year mainly due to security selection.
• A disproportionate number of Thrivent Small Cap Stock Fund holdings experienced value declines during the quarter amid rising concerns over AI-related risks.
• Portfolio management conducted a thorough evaluation of each position and subsequently reduced exposure to this group of AI-sensitive holdings.
• The Fund's underweight positioning in Pharmaceuticals & Biotechnology sub-industries was a large detractor from returns, as both segments delivered strong performance during the period.
• Positions were added to or initiated in multiple sectors, while other positions were reduced or sold as investment theses played out or proved no longer valid.

Executive Summary

• The Fund underperformed the Russell 2000 Index over the last quarter and the past year mainly due to security selection. The largest detractors to the past quarter were in Health Care, and the largest

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