N-CSR

United States

Securities and Exchange Commission

Washington, D.C. 20549

Form N-CSR

Certified Shareholder Report of Registered Management Investment Companies

Investment Company Act file number: 811-23362

Thrivent Church Loan and Income Fund

(Exact name of registrant as specified in charter)

901 Marquette Avenue, Suite 2500

Minneapolis, Minnesota 55402-3211

(Address of principal executive offices) (Zip code)

John D. Jackson

Secretary and Chief Legal Officer

Thrivent Church Loan and Income Fund

901 Marquette Avenue, Suite 2500

Minneapolis, Minnesota 55402-3211

(Name and address of agent for service)

Registrant’s telephone number, including area code: (612) 844-7190

Date of fiscal year end: March 31

Date of reporting period: March 31, 2022

Item 1. Report to Stockholders

[Insert shareholder report]

Item 2. Code of Ethics

As of the end of the period covered by this report, registrant has adopted a code of ethics (as defined in Item 2 of Form N-CSR) applicable to registrant’s Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. No waivers were granted to such code of ethics during the period covered by this report.  A copy of this code of ethics is filed as an exhibit to this Form N-CSR.

Item 3. Audit Committee Financial Expert

Registrant’s Board of Trustees has determined that George W. Morriss and Jerry T. Golden, independent trustees, are the Audit Committee Financial Experts.

Item 4. Principal Accountant Fees and Services

(a)        Audit Fees

The aggregate fees billed by registrant’s independent public accountants, Cohen & Company, Ltd. (“Cohen”), for each of the last two fiscal years for professional services rendered in connection with the audit of registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements were $85,000 for the year ended March 31, 2021 and $95,000 for the year ended March 31, 2022. 

(b)

Audit-Related Fees

The aggregate fees Cohen billed to registrant for each of the last two fiscal years for assurance and other services that are reasonably related to the performance of registrant’s audit and are not reported under Item 4(a) were $0 for the year ended March 31, 2021 and $0 for the year ended March 31, 2022.  The aggregate fees Cohen billed to registrant’s investment adviser and any entity controlling, controlled by, or under common control with registrant’s investment adviser for assurance and other services directly related to the operations and financial reporting of registrant were $0 for the year ended March 31, 2021 and $0 for the year ended March 31, 2022. 

(c)

Tax Fees

The aggregate tax fees Cohen billed to registrant for each of the last two fiscal years for tax compliance, tax advice and tax planning services were $6,000 for the year ended March 31, 2021 and $8,000 for the year ended March 31, 2022.  These fees include payments for tax return compliance services, excise distribution review services and other tax related matters.  The aggregate tax fees Cohen billed to registrant’s investment adviser and any entity controlling, controlled by, or under common control with registrant’s investment adviser for services directly related to the operations and financial reporting of registrant were $0 for the year ended March 31, 2021 and $0 for the year ended March 31, 2022.

(d)

All Other Fees

The aggregate fees Cohen billed to registrant for each of the last two fiscal years for products and services provided, other than the services reported in paragraphs (a) through (c) of this item, were $0 for the years ended March 31, 2021 and March 31, 2022.  The aggregate fees Cohen billed to registrant’s investment adviser and any entity controlling, controlled by, or under common control with registrant’s investment adviser for products and services provided, other than the services reported in paragraphs (a) through (c) of this item, were $0 for the year ended March 31, 2021 and $0 for the year ended March 31, 2022.  These figures are also reported in response to item 4(g) below.

(e)

Registrant’s audit committee charter provides that the audit committee (comprised of the independent Trustees of registrant) is responsible for pre-approval of all auditing services performed for the registrant. The audit committee also is responsible for pre-approval (subject to the de minimis exceptions for non-audit services described in Section 10A(i)(1)(B) of the Securities Exchange Act of 1934) of all non-auditing services performed for the registrant or an affiliate of registrant. In addition, registrant’s audit committee charter permits a designated member of the audit committee to pre-approve, between meetings, one or more audit or non-audit service projects, subject to an expense limit and notification to the audit committee at the next committee meeting. Registrant’s audit committee pre-approved all fees described above that Cohen billed to registrant.  

(f)

Less than 50% of the hours billed by Cohen for auditing services to registrant for the fiscal year ended March 31, 2022 were for work performed by persons other than full-time permanent employees of Cohen.

(g)

The aggregate non-audit fees billed by Cohen to registrant and to registrant’s investment adviser and any entity controlling, controlled by, or under common control with registrant’s investment adviser for the fiscal years ending March 31, 2021 and March 31, 2022 were $0 and $0 respectively.  These figures are also reported in response to item 4(d) above.

(h)

Registrant’s audit committee has considered the non-audit services provided to the registrant and registrant’s investment adviser and any entity controlling, controlled by, or under common control with registrant’s investment adviser as described above and determined that these services do not compromise Cohen’s independence.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Investments

(a)        Registrant’s Schedule of Investments is included in the report to shareholders filed under Item 1.

(b)        Not applicable to this filing.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Thrivent Asset Management, LLC (“Thrivent Asset Mgt.”) is the registrant’s investment adviser. A copy of Thrivent Asset Mgt.’s Proxy Voting Policies and Procedures Summary is attached to this filing as an exhibit and incorporated herein by reference.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

(a)(1)     The following information about the portfolio managers of the registrant who are primarily responsible for the day-to-day management of the registrant’s portfolio (“Portfolio Manager”) is provided as of May 27, 2022.

Frederick P. Johnson has served as Portfolio Manager of the Fund since 2018. Mr. Johnson also serves as Senior Portfolio Manager of Thrivent Financial’s church loan portfolio and has served as the Director of the Thrivent Church Financing department since 2004. Mr. Johnson has been an employee of Thrivent Financial since 1987, holding leadership roles in the mutual fund transfer agent/broker dealer from 1987 to 1994 and serving as Vice President of Investment Operations from 1995 to 2004.

Meg G. Spangler has served as the Associate Portfolio Manager of the Fund since 2018. Ms. Spangler has also served as Associate Portfolio Manager for Thrivent Financial’s church loan portfolio since 2004. She also recently served as Director of Thrivent’s Commercial Loan Servicing department, managing the ongoing servicing needs of over 2,500 loans. Ms. Spangler has actively worked with all aspects of church and commercial lending including underwriting, loan closing, and servicing.

Gregory R. Anderson has served as Portfolio Manager of the Fund since 2018. Mr. Anderson is the Vice President of Fixed Income Securities for Thrivent Financial and recently served as Senior Portfolio Manager of Thrivent Financial’s mortgage-backed securities (MBS) portfolio. He is also co-portfolio manager of certain Thrivent fixed income mutual funds. Mr. Anderson joined Thrivent Financial in 1997 and has held a variety of positions, including corporate bond investment analyst and securitized assets portfolio manager.

(a)(2)    

The following table provides information relating to other accounts managed by the Portfolio Managers as of March 31, 2022.

	Other Registered Investment Companies		Other Pooled Investment Vehicles		Other Accounts
Portfolio Manager	# of Accounts Managed	Assets Managed	# of Accounts Managed	Assets Managed	# of Accounts Managed	Assets Managed
Frederick P. Johnson	0	$0	0	$0	1	$875,778,926
Meg G. Spangler	0	$0	0	$0	1	$875,778,926
Gregory R. Anderson	10	$5,892,035,912	1	$197,261,571	2	$4,959,419,914

Portfolio managers at the investment adviser (“Thrivent Asset Mgt.”) of the registrant typically manage multiple accounts. These accounts may include, among others, mutual funds, proprietary accounts and separate accounts (assets managed on behalf of pension funds, foundations and other investment accounts). The management of multiple funds and accounts may give rise to potential conflicts of interest if the funds and accounts have different objectives, benchmarks, time horizons, and fees.

In addition, the side-by-side management of these funds and accounts may raise potential conflicts of interest relating to cross trading, the allocation of investment opportunities and the aggregation and allocation of trades. Thrivent Asset Mgt. seeks to provide best execution of all securities transactions and aggregate and then allocate securities to client accounts in a fair and timely manner. To this end, Thrivent Asset Mgt. has developed policies and procedures designed to mitigate and manage the potential conflicts of interest that may arise from side-by-side management. The information regarding potential conflicts of interest was provided by Thrivent Asset Mgt. and is current as of May 27, 2022.

(a)(3)     The following is a description provided by Thrivent Asset Mgt. regarding the structure of and criteria for determining the compensation of the Portfolio Managers as of March 31, 2022.

Each portfolio manager of Thrivent Asset Mgt. is compensated by an annual base salary and an annual bonus, in addition to the various benefits that are available to all employees of Thrivent Financial. The annual base salary for each portfolio manager is a fixed amount that is determined annually according to the level of responsibility and performance. The annual bonus provides for a variable payment that is attributable to the relative performance of each fund or account managed by the portfolio manager measured for one-, three-, and five-year periods against the median performance of other funds in the same peer group, as classified by Lipper, Inc., or an index constructed with comparable criteria.

In addition, some portfolio managers are also eligible to participate in one or more of the following:

Long-Term Incentive Plan.

Thrivent Financial’s long-term incentive plan provides for an additional variable payment based on the extent to which Thrivent Financial met corporate goals during the previous three-year period. 

Deferred Compensation Plan.

Thrivent Financial’s deferred compensation plan allows for the deferral of salary and bonus into certain affiliated and unaffiliated mutual funds up to an annual dollar limit.

Key Employee Restoration Plan.

Thrivent Financial’s key employee restoration plan allows for the company to make a contribution to the plan on behalf of each participant.

(a)(4)     The following table provides information as of March 31, 2022 on the dollar range of beneficial ownership by each Portfolio Manager in the registrant.

Portfolio Manager	Dollar Range of Beneficial Ownership in the Registrant
Frederick P. Johnson	$50,001-$100,000
Meg G. Spangler	$10,001-$50,000
Gregory R. Anderson	None

(b)        Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominees to registrant’s board of trustees, where those changes were implemented after the registrant last provided disclosure in response to this Item.

Item 11. Controls and Procedures

(a)        Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(b)        There were no changes in registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, registrant’s internal control over financial reporting. 

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies

Not applicable.

Item 13. Exhibits

(a)(1)    

Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: See EX-99.CODE attached hereto.

(a)(2)    

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See EX-99.CERT attached hereto.

(a)(3)     Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable.

(a)(4)     Change in the registrant’s independent public accountant: Not applicable

(b)        If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference: See EX-99.906CERT attached hereto.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 27, 2022                                                       Thrivent Church Loan and Income Fund

                                                                                       By:   /s/ David S. Royal                                     

                                                                                               David S. Royal

                                                                                            Trustee and President

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Date: May 27, 2022                                                       By:   /s/ David S. Royal                                     

                                                                                               David S. Royal

                                                                                            Trustee and President

                                                                                            (principal executive officer)

Date: May 27, 2022                                                       By:   /s/ Sarah L. Bergstrom                              

                                                                                               Sarah L. Bergstrom

                                                                                            Treasurer and Principal Accounting Officer

                                                                                            (principal financial officer)

Thrivent

Church

Loan

and

Income

Fund

Annual

Report

Interval

Funds

March

31,

2022

Table

of

Contents

Letter

from

the

President

2

Portfolio

Perspective

4

Shareholder

Expense

Example

6

Report

of

Independent

Registered

Public

Accounting

Firm

7

Schedule

of

Investments

8

Statement

of

Assets

and

Liabilities

13

Statement

of

Operations

14

Statements

of

Changes

in

Net

Assets

15

Statement

of

Cash

Flows

16

Notes

to

Financial

Statements

17

Financial

Highlights

28

Additional

Information

30

Board

of

Trustees

and

Officers

31

2

Dear

Shareholder:

2

As

we

emerge

from

the

pandemic,

Americans

face

a

new

round

of

challenges.

Rising

prices

at

home

and

a

growing

humanitarian

crisis

abroad

have

made

this

an

important

time

for

Christian

churches

to

make

an

impact.

Thrivent

Church

Loan

and

Income

Fund

has

continued

to

help

churches

across

the

country

as

they

serve

their

communities

in

significant

ways—especially

during

the

pandemic—distributing

food,

clothing,

counseling

services,

and

delivering

the

Gospel

message

to

those

in

need.

Since

its

inception

in

September

2018,

the

Fund

has

extended

loans

to

more

than

100

churches

across

27

states

and

11

denominations,

including

many

multi-site

church

communities.

We

look

forward

to

building

on

that

success

by

continuing

to

add

to

the

list

of

churches—across

the

country

and

across

denominations—

that

can

benefit

from

a

mortgage

loan

relationship

through

the

Fund.

In

the

last

12

months,

church

loans

made

by

the

Fund

have

impacted

more

than

14,000

worshippers

as

churches

saved

an

average

of

1.69%

on

the

mortgages

that

were

refinanced,

allowing

for

ministry

expansion,

construction

of

new

facilities,

and

other

important

projects.

Overall,

churches

recently

receiving

loans

that

are

now

held

by

the

Fund

have

added

60,160

square

feet

of

worship

space.

Here

are

just

a

few

examples

of

the

positive

benefits

that

churches

have

extended

to

their

communities

over

the

past

year,

thanks,

in

part,

to

loans

provided

by

the

Fund:

An

Assemblies

of

God

church

in

Michigan

worked

with

Thrivent

to

refinance

an

existing

loan

that

had

been

with

another

lender.

This

will

allow

the

church

to

pay

off

its

debt

sooner

and

redirect

those

funds

toward

the

ministries

they

support

locally

and

globally.

The

church

recently

raised

financial

assistance

for

Ukrainian

refugee

relief

through

a

special

offering.

Locally,

the

church

hosts

a

school

backpack

drive

every

fall,

provides

more

than

100

turkey

dinners

at

Thanksgiving

for

local

families

in

need,

and

supports

a

ministry

for

individuals

impacted

by

adoption

or

foster

care.

Additionally,

the

church

financially

supports

40

missionaries

across

the

globe.

A

Lutheran

church

in

Minnesota

refinanced

its

debt

into

one

consolidated

loan

with

Thrivent

that

saves

the

church

more

than

$34,000

annually.

The

church

looks

forward

to

putting

these

savings

toward

deepening

its

impact

in

both

urban

and

suburban

communities

through

support

of

global

health

ministries,

local

affordable

housing,

and

other

ministries,

such

as

community

gardens

that

provide

food

for

those

in

need.

A

Florida

Assemblies

of

God

church

was

able

to

refinance

a

large

floating

rate

loan

with

a

short-term

to

a

longer-term

fixed-rate

loan

with

Thrivent.

The

church

is

excited

to

redistribute

this

long-term

interest

expense

savings

toward

ministries

it

supports,

such

as

the

church’s

food

distribution

that

serves

about

1,500

families

monthly,

its

small

group

impact

ministry

that

has

more

than

a

thousand

participants,

and

its

two

Christian

preschools,

one

Christian

elementary

school,

and

a

regional

college

campus.

In

addition

to

helping

dozens

of

churches

meet

their

financial

needs

and

serve

their

communities,

we

take

great

pride

in

the

fact

that

the

Fund

has

also

provided

a

yield

for

shareholders

of

more

than

2%

in

the

current

low

yield

environment.

(The

Fund’s

30-day

SEC

yield

as

of

March

31,

2022

was

2.98%

and averaged

2.58%

for

the 12-month

period

ending March

31,

2022,

after

fee

waivers*.)

Thank

you

for

your

support

of

the

Thrivent

Church

Loan

and

Income

Fund.

David

S.

Royal

President

and

Chief

Investment

Officer

Thrivent Church

Loan

and

Income

Fund

*As

of

March

31,

2022,

the

30-day

SEC

yield

before

fee

waivers

was

0.66%.

The

Adviser

has

contractually

agreed,

for

a

period

of

one

year

from

the

date

of

the

most

recent

prospectus,

to

waive

certain

fees

and/or

reimburse

certain

expenses

associated

with

the

Fund.

If

not

waived,

returns

would

have

been

lower.

Refer

to

the

Fees

&

Expenses

table

in

the

prospectus.

Investing

involves

risk.

Before

investing,

consider

the

Fund's

investment

objectives,

risks,

charges

and

expenses.

Go

to

thriventintervalfunds.com

for

a

prospectus

containing

this

information

and

read

it

carefully.

Thrivent

Church

Loan

and

Income

Fund

invests

primarily

in

church

loans

and

mortgage-backed

securities.

Church

loans

are

mortgages

taken

out

by

non-profit

organizations

with

a

Christian

mission,

or

bonds

issued

by

these

organizations.

They

are

typically

not

listed

on

any

national

securities

exchange

and

no

active

trading

market

exists

for

them,

so

are

considered

illiquid.

These

and

other

risks

are

described

in

the

Fund's

prospectus.

The

Fund

is

a

closed-end

"interval

fund."

Limited

liquidity

is

provided

to

shareholders

only

through

the

Fund's

quarterly

offers

to

repurchase

between

5%

to

25%

of

its

outstanding

shares

at

net

asset

value

(subject

to

applicable

laws

and

approval

of

the

Board

of

Trustees).

There

is

no

secondary

market

for

the

Fund's

shares

and

none

is

expected

to

develop.

Investors

should

consider

shares

of

the

Fund

to

be

an

illiquid

investment.

The

experiences

of

the

church

organizations

discussed

may

not

be

the

same

as

other

organizations

and

does

not

indicate

future

performance

or

success. 

Thrivent

Church

Loan

and

Income

Fund

4

The

returns

shown

do

not

reflect

taxes

a

shareholder

would

pay

on

distributions

or

redemptions.

Frederick

P.

Johnson,

CPA

(Inactive),

Meg

G.

Spangler,

Gregory

R.

Anderson,

CFA,

Portfolio

Co-Managers

Thrivent

Church

Loan

and

Income

Fund

seeks

to

produce

income

by

investing

in

church

loans

and

other

debt

securities.

The

Fund's

investment

objective

is

"non-fundamental,"

which

means

that

it

may

be

changed

by

the

Board

without

Shareholder

approval.

How

did

the

Portfolio

perform

during

the

12-month

period

ended March

31,

2022?

Performance

can

be

summarized

by

the

Christian

community

impact,

portfolio

yield

(30-day

SEC

yield),

and

portfolio

total

return.

The

105

churches

that

have

received

loans

from

the

Fund

since

its

inception

in

September

2018

continued

to

make

significant

community

impact,

especially

during

the

pandemic,

by

distributing

food,

clothing,

counseling

services,

and

the

Gospel

message

to

those

in

need.

Over

the

past

year,

the

church

loans

made

by

the

Fund

have

impacted

more

than

14,000

worshippers,

saved

churches

an

average

of

1.69%

on

the

mortgages

that

were

refinanced

so

that

funds

could

be

redirected

to

more

ministry

and

community

impact,

and

financed

ministry

expansion

via

the

addition

of

60,160

square

feet

of

worship

space.

The Fund’s

30-day

SEC

yield

averaged

2.58%

over

the

past

year.

At

the

end

of

the

period

on

March

31,

2022,

the

Fund’s

30-day

SEC

yield

was

2.98%

(0.66%

before

fee

waivers

were

applied

to

the

Fund).

Management

is

mindful

of

the

Fund’s

duration

(i.e.,

interest

rate

risk)

and

its

impact

on

total

return;

however,

the

Fund

is

not

managed

specifically

against

a

benchmark.

The

Bloomberg

U.S.

Aggregate

Bond

Index

(the

Index)

is

a

broad-based

index

for

the

overall

bond

market

and

used

as

a

proxy

for

the

Fund

for

comparative

purposes

only.

The

Fund

returned

-5.22%

for

the

year,

which

was

below

the

index

return

of

-4.15%.

What

factors

affected

the

Portfolio's

performance?

During

the

past

year,

Fund

management

has

continued

to

focus

on

building

and

maintaining

a

high-quality

loan

portfolio

with

strong

diversification,

taking

advantage

of

opportunities

to

add

yield,

and

managing

duration

risk

within

a

target

range.

The

Fund

maintained

a

well-diversified

portfolio

with

positions

in

76

church

loans

across

27

states

and

11

denominations

(Lutheran,

Baptist,

Non-Denominational,

etc.)

as of

the end

of

the

reporting

period.

Also,

during

the

past

year,

management

had

the

opportunity

to

selectively

add

loans

to

the

Fund

with

higher

yields

and

more

favorable

risk

characteristics.

Overall,

church

loan

quality

continued

to

be

strong

with

no

delinquent

loans

during

the

period.

Fund

performance

was

also

driven

by

the

rising

interest

rate

environment,

which

negatively

impacted

the

value

of

the

fixed-rate

church

loans

in

the

portfolio.

While

the

duration

of

the

Fund

was

shorter

than

the

Index,

two

main

factors

contributed

to

its

performance

being

lower

than

the

Index.

First,

the

Fund

had

a

higher

percentage

of

loans

in

the

4-

to

7-years

duration

range,

where

interest

rates

increased

the

most

and

the

Treasury

yield

curve

flattened

the

most.

Also,

the

Fund

had

a

higher

percentage

of

assets

impacted

by

corporate

bond

spreads,

which

widened

over

the

year.

What

is

your

outlook?

Churches

have

transitioned

back

to

in-person

worship

services

while

continuing

to

benefit

from

online

streaming

worship

and

small

group

connections.

Going

forward,

we

believe

COVID’s

impact

on

churches

will

likely

be

muted

as

they

have

successfully

adapted

to

the

pandemic.

Many

churches

have

invested

in

technology

to

expand

online

offerings,

livestream

services,

and

automate

online

giving

for

church

members.

In

addition,

church

expansion

plans

that

were

put

on

hold

at

the

beginning

of

the

pandemic

are

once

again

being

implemented.

Persistent

inflationary

pressures

have

caused

the

Federal

Reserve

(Fed)

to

pivot

to

a

more

hawkish

stance

regarding

monetary

policy.

The

Fed

raised

its

federal

funds

rate

by

25

basis

points

in

March

and

is

projected

to

implement

a

number

of

increases

over

the

next

two

years.

In

addition,

the

Fed

ended

its

purchase

program

of

U.S.

Treasury

securities

and

mortgage-backed

securities

(MBS)

in

March

and

is

expected

to

begin

shrinking

its

balance

sheet

in

the

second

quarter.

The

initial

impact

of

higher

rates

is

increased

loan

activity

as

churches

seek

to

lock

in

rates

prior

to

any

potential

further

increases.

Loan

applications

have

been

robust,

and

we

expect

higher

loan

applications

to

continue

as

the

flatter

yield

curve

creates

a

stronger

value

proposition

for

certain

longer-term

products

we

offer.

In

addition,

an

increasing

interest

rate

environment

creates

an

opportunity

to

add

higher-yielding

loans

to

the

Fund.

The

Fund

will

continue

to

hold

liquid

securities

as

part

of

the

overall

portfolio

strategy.

Going

forward,

the

risk/reward

outlook

for

agency

MBS

favors

a

neutral

weighting

due

to

waning

Fed

support

but

stabilizing

spreads.

We

continue

to

favor

MBS

versus

Treasury

securities

until

the

Fed

stops

its

MBS

purchases,

which

will

most

likely

happen

in

mid-2022.

5

Portfolio

Composition

(%

of

Portfolio)

Church

Loans

74.3%

Long-Term

Fixed

Income

19.9%

Short-Term

Investments

5.8%

Total

100.0%

Quoted

Portfolio

Composition

is

subject

to

change.

Average

Annual

Total

Returns

1

As

of

March

31,

2022

From

Inception

Class

S

1-Year

9/28/2018

Net

Asset

Value

-5.22%

2.63%

Past

performance

is

not

an

indication

of

future

results.

The

prospectus

contains

more

complete

information

on

the

investment

objectives,

risks,

charges

and

expenses

of

the

investment

company,

which

investors

should

read

and

consider

carefully

before

investing.

To

obtain

a

prospectus,

contact

a

registered

representative

or

visit

ThriventFunds.com.

Total

investment

return

and

principal

value

of

your

investment

will

fluctuate,

and

your

shares,

when

redeemed,

may

be

worth

more

or

less

than

their

original

cost.

Current

performance

may

be

higher

or

lower

than

the

perfor-

mance

data

quoted.

Call

800-847-4836

or

visit

ThriventFunds.com

for

performance

results

current

to

the

most

recent

month-end.

Average

annual

total

returns

represent

past

performance

and

reflect

changes

in

share

prices,

the

reinvestment

of

all

dividends

and

capital

gains,

and

the

effects

of

compounding.

Periods

of

less

than

one

year

are

not

annualized.

At

various

times,

the

Fund's

adviser

may

have

waived

its

management

fee

and/or

reimbursed

Fund

expenses,

without

which

the

Fund's

total

returns

would

have

been

lower.

The

returns

shown

do

not

reflect

taxes

a

shareholder

would

pay

on

distributions

or

redemptions.

Unless

otherwise

noted,

the

Index

results

shown

do

not

reflect

deductions

for

fees,

expenses,

or

taxes.

Index

results

shown

reflect

reinvestment

of

dividends.

It

is

not

possible

to

invest

directly

in

an

Index.

1

*

The

Bloomberg

U.S.

Aggregate

Bond

Index

is

an

index

that

measures

the

performance

of

U.S.

investment

grade

bonds.

**

The

Consumer

Price

Index

is

an

inflationary

indicator

that

measures

the

change

in

the

cost

of

a

fixed

basket

of

products

and

services,

including

hous-

ing,

electricity,

food

and

transportation.

6

Shareholder

Expense

Example

(unaudited)

As

a

shareholder

of

the

Fund,

you

incur

ongoing

costs,

including

management

fees

and

other

Fund

expenses.

This

Example

is

intended

to

help

you

understand

your

ongoing

costs

(in

dollars)

of

investing

in

the

Fund

and

to

compare

these

costs

with

the

ongoing

costs

of

investing

in

other

mutual

funds.

The

Example

is

based

on

an

investment

of

$1,000

invested

at

the

beginning

of

the

period

and

held

for

the

entire

period

from

October

1,

2021

through

March

31,

2022.

Actual

Expenses

In

the

table

below,

the

first

line

provides

information

about

actual

account

values

and

actual

expenses.

You

may

use

the

information

in

this

line,

together

with

the

amount

you

invested,

to

estimate

the

expenses

that

you

paid

over

the

period.

Simply

divide

your

account

value

by

$1,000

(for

example,

an

$8,600

account

value

divided

by

$1,000

=

8.6),

then

multiply

the

result

by

the

number

in

the

first

line

under

the

heading

entitled

"Expenses

Paid

during

Period"

to

estimate

the

expenses

you

paid

on

your

account

during

the

period.

Hypothetical

Example

for

Comparison

Purposes

In

the

table

below,

the

second

line

provides

information

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund's

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund's

actual

return.

The

hypothetical

account

values

and

expenses

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period.

You

may

use

this

information

to

compare

the

ongoing

costs

of

investing

in

this

Fund

and

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

example

that

appears

in

the

shareholder

reports

of

the

other

funds.

Beginning

Account

Value

10/1/2021

Ending

Account

Value

3/31/2022

Expenses

Paid

During

Period

10/1/2021-

3/31/2022

*

Annualized

Expense

Ratio

Thrivent

Church

Loan

and

Income

Fund

Actual

Class

S

$1,000

$935

$4.82

1.00%

Hypothetical

**

Class

S

$1,000

$1,020

$5.04

1.00%

*

Expenses

are

equal

to

the

Fund's

annualized

expense

ratio,

multiplied

by

the

average

account

value

over

the

period,

multiplied

by

182/365

to

reflect

the

one-half

year

period.

**

Assuming

5%

annualized

total

return

before

expenses.

Report

of

Independent

Registered

Public

Accounting

Firm

7

C

O

H

E

N

&

C

O

M

P

A

N

Y

,

L

T

D.

800.229.1099

|

866.818.4538

fax

|

cohencpa.com

Registered

with

the

Public

Company

Accounting

Oversight

Board

To

the

Shareholders

and

Board

of

Trustees

of

Thrivent

Church

Loan

and

Income

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Thrivent

Church

Loan

and

Income

Fund

(the

“Fund”)

as

of

March

31,

2022,

the

related

statements

of

operations

and

cash

flows

for

the

year

then

ended,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

then

ended,

the

related

notes,

and

the

financial

highlights

for

each

of

the

four

periods

in

the

period

then

ended

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

March

31,

2022,

the

results

of

its

operations

and

its

cash

flows

for

the

year

then

ended,

the

changes

in

net

assets

for

each

of

the

two

years

in

the

period

then

ended,

and

the

financial

highlights

for

each

of

the

four

periods

in

the

period

then

ended,

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(“PCAOB”)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

March

31,

2022,

by

correspondence

with

the

custodian,

counterparties,

and

brokers.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

We

believe

that

our

audits

provides

a

reasonable

basis

for

our

opinion.

We

have

served

as

the

Fund’s

auditor

since

2018.

COHEN

&

COMPANY,

LTD.

Cleveland,

Ohio

May

17,

2022

Thrivent

Church

Loan

and

Income

Fund

Schedule

of

Investments

as

of

March

31,

2022

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

schedule.

8

Principal

Amount

Church

Loans

(

78.6%

)

a

Value

Alabama

(1.0%)

Church

Loan

#

200030770

$

379,014

4.000%,

12/1/2039

b

$

361,191

Total

361,191

Arizona

(1.9%)

Church

Loan

#

200030450

267,988

3.875%,

3/15/2032

b

248,639

Church

Loan

#

200030680

484,940

3.950%,

11/1/2034

b

467,355

Total

715,994

Arkansas

(3.2%)

Church

Loan

#

200031540

618,537

3.200%,

12/15/2029

b

609,873

Church

Loan

#

200031780

662,283

3.650%,

6/1/2041

b

602,519

Total

1,212,392

California

(13.6%)

Church

Loan

#

200030700

535,531

3.750%,

6/15/2045

b

476,427

Church

Loan

#

200030850

384,856

4.550%,

11/15/2033

b

403,679

Church

Loan

#

200031050

445,888

4.650%,

11/15/2038

b

468,131

Church

Loan

#

200031180

763,338

3.450%,

1/1/2044

b

703,649

Church

Loan

#

200031270

673,349

4.400%,

5/15/2045

b

591,426

Church

Loan

#

200031710

923,764

3.600%,

2/1/2041

b

820,222

Church

Loan

#

200031790

768,751

3.600%,

3/15/2037

b

736,480

Church

Loan

#

200031920

442,199

3.375%,

10/15/2036

b

397,496

Church

Loan

#

200032090

660,063

3.700%,

1/1/2042

b

587,459

Total

5,184,969

Colorado

(2.4%)

Church

Loan

#

200031580

464,734

4.350%,

7/15/2039

b

465,913

Church

Loan

#

200031750

487,688

2.850%,

1/15/2036

b

448,663

Total

914,576

Florida

(3.6%)

Church

Loan

#

200031470

421,509

4.950%,

7/15/2039

b

420,964

Church

Loan

#

200031670

299,703

3.700%,

1/15/2036

b

266,879

Church

Loan

#

200031960

768,331

3.800%,

11/15/2036

b

695,145

Total

1,382,988

Principal

Amount

Church

Loans

(78.6%)

a

Value

Illinois

(4.4%)

Church

Loan

#

200031070

$

602,841

4.500%,

11/15/2043

b

$

630,139

Church

Loan

#

200031210

557,206

3.950%,

2/15/2040

b

523,370

Church

Loan

#

200031211

154,523

3.200%,

2/15/2035

b

152,789

Church

Loan

#

200031900

392,134

3.950%,

9/15/2041

b

339,381

Total

1,645,679

Indiana

(2.4%)

Church

Loan

#

200031420

629,690

3.500%,

5/15/2040

b

565,882

Church

Loan

#

200031950

385,570

3.950%,

11/1/2036

b

350,671

Total

916,553

Kansas

(0.7%)

Church

Loan

#

200031590

292,100

3.800%,

8/15/2045

b

277,353

Total

277,353

Kentucky

(0.8%)

Church

Loan

#

200030120

292,701

4.600%,

8/1/2034

b

292,733

Total

292,733

Maryland

(2.2%)

Church

Loan

#

200030760

981,827

4.300%,

1/1/2044

b

880,247

Total

880,247

Massachusetts

(0.6%)

Church

Loan

#

200031490

256,270

4.300%,

6/1/2035

b

238,494

Total

238,494

Michigan

(1.5%)

Church

Loan

#

200032050

615,733

3.850%,

1/1/2037

b

560,128

Total

560,128

Minnesota

(8.6%)

Church

Loan

#

200030790

585,894

3.800%,

11/15/2039

b

579,465

Church

Loan

#

200031020

99,401

3.800%,

1/1/2035

b

97,680

Church

Loan

#

200031120

206,108

4.570%,

11/15/2032

b

216,551

Church

Loan

#

200031121

207,779

4.440%,

11/15/2032

b

217,146

Church

Loan

#

200031122

207,029

4.180%,

11/15/2032

b

210,776

Church

Loan

#

200031290

192,349

5.000%,

1/15/2031

b

200,822

Church

Loan

#

200031300

150,681

3.800%,

3/1/2030

b

148,221

Thrivent

Church

Loan

and

Income

Fund

Schedule

of

Investments

as

of

March

31,

2022

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

schedule.

9

Principal

Amount

Church

Loans

(78.6%)

a

Value

Minnesota

(8.6%)

-

continued

Church

Loan

#

200031520

$

148,617

3.400%,

7/1/2035

b

$

141,402

Church

Loan

#

200031560

213,759

4.150%,

8/15/2039

b

214,521

Church

Loan

#

200031770

581,189

3.450%,

6/15/2041

b

525,018

Church

Loan

#

200031910

742,570

3.400%,

10/1/2046

b

655,581

Total

3,207,183

Mississippi

(0.6%)

Church

Loan

#

200031400

237,539

4.900%,

3/15/2034

b

244,730

Total

244,730

Missouri

(1.2%)

Church

Loan

#

200031480

484,498

3.875%,

5/15/2040

b

437,886

Total

437,886

New

Jersey

(2.3%)

Church

Loan

#

200030590

246,717

4.550%,

10/15/2034

b

237,369

Church

Loan

#

200031890

712,966

3.700%,

10/1/2041

b

636,567

Total

873,936

New

York

(2.4%)

Church

Loan

#

200018200

59,058

4.950%,

6/15/2029

b

59,297

Church

Loan

#

200031200

482,753

3.300%,

9/15/2044

b

468,169

Church

Loan

#

200031350

359,908

4.850%,

5/15/2039

b

371,761

Total

899,227

North

Carolina

(0.7%)

Church

Loan

#

200031320

274,851

4.200%,

3/15/2040

b

250,846

Total

250,846

Oregon

(0.9%)

Church

Loan

#

200031370

359,953

4.500%,

4/15/2039

b

346,126

Total

346,126

Pennsylvania

(0.3%)

Church

Loan

#

200031390

106,857

3.400%,

3/1/2030

b

104,168

Total

104,168

South

Dakota

(2.8%)

Church

Loan

#

200030780

516,467

2.990%,

4/1/2031

b

513,324

Principal

Amount

Church

Loans

(78.6%)

a

Value

South

Dakota

(2.8%)

-

continued

Church

Loan

#

200030920

$

548,844

3.125%,

1/1/2035

b

$

544,927

Total

1,058,251

Tennessee

(1.5%)

Church

Loan

#

200031360

305,179

4.750%,

3/15/2037

b

320,405

Church

Loan

#

200031610

288,094

4.500%,

12/1/2040

b

248,056

Total

568,461

Texas

(11.4%)

Church

Loan

#

200030080

360,427

4.550%,

7/1/2039

b

360,938

Church

Loan

#

200030110

628,296

4.350%,

9/15/2039

b

593,256

Church

Loan

#

200030830

403,051

4.125%,

11/1/2044

b

393,865

Church

Loan

#

200031140

371,780

4.500%,

12/15/2033

b

367,841

Church

Loan

#

200031170

623,575

3.550%,

2/1/2035

b

606,766

Church

Loan

#

200031330

194,372

4.950%,

3/15/2044

b

199,802

Church

Loan

#

200031331

194,688

5.125%,

3/15/2044

b

202,936

Church

Loan

#

200031380

293,624

4.000%,

10/1/2040

b

252,381

Church

Loan

#

200031600

293,827

3.700%,

11/1/2035

b

262,048

Church

Loan

#

200031740

341,422

3.800%,

1/1/2031

b

314,658

Church

Loan

#

200031821

876,209

3.450%,

6/15/2041

b

795,650

Total

4,350,141

Virginia

(2.0%)

Church

Loan

#

200031090

352,010

3.400%,

1/15/2032

b

345,489

Church

Loan

#

200031110

254,465

3.400%,

1/15/2032

b

249,751

Church

Loan

#

200031650

173,727

2.550%,

12/15/2030

b

160,469

Total

755,709

Washington

(1.7%)

Church

Loan

#

200031800

719,243

3.750%,

6/1/2036

b

653,981

Total

653,981

Wisconsin

(3.9%)

Church

Loan

#

200030840

272,705

3.400%,

11/15/2038

b

264,119

Church

Loan

#

200030841

261,057

3.100%,

11/15/2038

b

259,349

Church

Loan

#

200030842

134,070

2.900%,

11/15/2038

b

133,962

Thrivent

Church

Loan

and

Income

Fund

Schedule

of

Investments

as

of

March

31,

2022

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

schedule.

10

Principal

Amount

Church

Loans

(78.6%)

a

Value

Wisconsin

(3.9%)

-

continued

Church

Loan

#

200031410

$

102,641

4.000%,

5/1/2030

b

$

98,549

Church

Loan

#

200031510

377,776

4.750%,

6/1/2039

b

388,151

Church

Loan

#

200031840

342,596

3.300%,

8/1/2036

b

314,539

Total

1,458,669

Total

Church

Loans

(cost

$31,503,682)

29,792,611

Principal

Amount

Long-Term

Fixed

Income

(

21.0%

)

Value

Mortgage-Backed

Securities

(21.0%)

Federal

National

Mortgage

Association

Conventional

30-Yr.

Pass

Through

525,000

2.500%, 

4/1/2052

c

500,883

3,450,000

2.500%, 

5/1/2052

c

3,284,693

4,050,000

3.000%, 

4/1/2048

c

3,961,406

225,000

3.000%, 

5/1/2049

c

219,563

Total

7,966,545

Total

Long-Term

Fixed

Income

(cost

$8,085,627)

7,966,545

Shares

Short-Term

Investments

(

6.2%

)

Value

Thrivent

Core

Short-Term

Reserve

Fund

233,434

0.660%

d

2,334,339

Total

Short-Term

Investments

(cost

$2,333,911)

2,334,339

Total

Investments

(cost

$41,923,220)

105.8%

$40,093,495

Other

Assets

and

Liabilities,

Net

(5.8%)

(2,181,572)

Total

Net

Assets

100.0%

$37,911,923

a

All

Mortgagees

have

the

right

to

repay

the

loan

at

any

time.  The

Church

Loans

are

generally

considered

to

be

illiquid

due

to

the

limited,

if

any,

secondary

market.

b

Security

is

valued

using

significant

unobservable

inputs.

Further

information

on

valuation

can

be

found

in

the

Notes

to

Financial

Statements.

c

Denotes

investments

purchased

on

a

when-issued

or

delayed-delivery

basis.

d

The

interest

rate

shown

reflects

the

seven

day

yield

as

of

the

end

of

the

period.

Unrealized

Appreciation

(Depreciation)

Gross

unrealized

appreciation

and

depreciation

of

investments

of

the

portfolio

as

a

whole

(including

derivatives,

if

any),

based

on

cost

for

federal

income

tax

purposes,

were

as

follows:

Gross

unrealized

appreciation

$161,864

Gross

unrealized

depreciation

(1,991,800)

Net

unrealized

appreciation

(depreciation)

($1,829,936)

Cost

for

federal

income

tax

purposes

$41,923,431

Thrivent

Church

Loan

and

Income

Fund

Schedule

of

Investments

as

of

March

31,

2022

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

schedule.

11

The

following

table

is

a

reconciliation

of

assets

in

which

significant

unobservable

inputs

(Level

3)

were

used

in

determining

fair

value

for

Church

Loan

and

Income

Fund as

discussed

in

the

Notes

to

Financial

Statements.

*

Located

on

the

Statement

of

Operations,

Change

in

net

unrealized

appreciation/(depreciation)

on

investments.

   ^

Located

on

the

Statement

of

Operations,

Net

realized

gains/(losses)

on

investments.

   #

Transferred

from

Level

2

to

Level

3

because

of

a

lack

of

observable

market

data,

resulting

from

a

decrease

in

market

activity

for

the

securities.

   @

Transferred

from

Level

3

to

Level

2

because

observable

market

data

became

available

for

the

securities.

The

reporting

entity's

Church

Loan

Level

3

securities'

fair

value

is

calculated

by

a

vendor

using

a

market

approach

with

a

discounted

cash

flow

model

based

on

the

established

policies

and

procedures

of

the

reporting

entity. 

Inputs

used

in

valuation

include

the

principal

and

interest

schedules,

bond

equivalent

ratings,

loan

transaction

spreads

with

a

range

of

0.03%

to

3.20%

(weighted

average

of

1.18%),

U.S.

Treasury

yields,

and

corporate

credit

curve

yields

with

a

range

of

2.23%

to

4.50%

(weighted

average

of

3.53%). 

Loan

transaction

spreads

and

corporate

credit

yields were

weighted

by

the

relative

fair

value

of

the

associated instruments.

A

significant

increase

or

decrease

in

the

inputs

in

isolation

would

have

resulted

in

a

significantly

lower

or

higher

fair

value

measurement.

Fair

Valuation

Measurements

The

following

table

is

a

summary

of

the

inputs

used

as

of

March

31,

2022,

in

valuing

Church

Loan

and

Income

Fund's

assets

carried

at

fair

value.

Investments

in

Securities

Total

Level

1

Level

2

Level

3

Church

Loans

$29,792,611

$–

$–

$29,792,611

Long-Term

Fixed

Income

Mortgage-Backed

Securities

7,966,545

–

7,966,545

–

Subtotal

Investments

in

Securities

$37,759,156

$–

$7,966,545

$29,792,611

Other

Investments  *

Total

Affiliated

Short-Term

Investments

2,334,339

Subtotal

Other

Investments

$2,334,339

Total

Investments

at

Value

$40,093,495

*

Certain

investments

are

measured

at

fair

value

using

a

net

asset

value

per

share

that

is

not

publicly

available

(practical

expedient).  According

to

disclosure

requirements

of

Accounting

Standards

Codification

(ASC)

820,

Fair

Value

Measurement,

securities

valued

using

the

practical

expedient

are

not

classified

in

the

fair

value

hierarchy.  The

fair

value

amounts

presented

in

this

table

are

intended

to

permit

reconciliation

of

the

fair

value

hierarchy

to

the

amounts

presented

in

the

Statement

of

Assets

and

Liabilities.  

Investments

in

Securities 

Beginning 

Value

3/31/2021

Realized

Gain/

(Loss)

^

Change

in

Unrealized

Appreciation/

(Depreciation)

* 

Purchases 

Sales /

Paydowns

Transfers

Into

Level

3#

Transfers

Out

of

Level

3 

@

Ending

Value 

3/31/2022

 Church

Loans

$27,245,843  

 $-

$(2,577,895) 

$9,057,231  

($3,932,568) 

$- 

$- 

$29,792,611  

Total 

$27,245,843

$- 

$(2,577,895) 

$9,057,231  

($3,932,568) 

$-  

$-  

$29,792,611  

Thrivent

Church

Loan

and

Income

Fund

Schedule

of

Investments

as

of

March

31,

2022

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

schedule.

12

Investment

in

Affiliates

Affiliated

issuers,

as

defined

under

the

Investment

Company

Act

of

1940,

include

those

in

which

the

Fund's

holdings

of

an

issuer

represent

5%

or

more

of

the

outstanding

voting

securities

of

an

issuer,

any

affiliated

mutual

fund,

or

a

company

which

is

under

common

ownership

or

control

with

the

Fund.

 The

Fund

owns

shares

of

Thrivent

Core

Short-Term

Reserve

Fund,

a

series

of

Thrivent

Core

Funds,

primarily

to

serve

as

a

cash

sweep

vehicle

for

the

Fund.

Thrivent

Core

Funds

are

established

solely

for

investment

by

Thrivent

entities. 

A

summary

of

transactions

(in

thousands;

values

shown

as

zero

are

less

than

$500)

for

the

fiscal

year

to

date,

in

Church

Loan

and

Income

Fund,

is

as

follows:

Fund

Value

3/31/2021

Gross

Purchases

Gross

Sales

Value

3/31/2022

Shares

Held

at

3/31/2022

%

of

Net

Assets

3/31/2022

Affiliated

Short-Term

Investments

Core

Short-Term

Reserve,

0.660%

$2,652

$7,550

$7,868

$2,334

233

6.2%

Total

Affiliated

Short-Term

Investments

2,652

2,334

6.2

Total

Value

$2,652

$2,334

Fund

Net

Realized

Gain/(Loss)

Change

in

Unrealized

Appreciation/

(Depreciation)

Distributions

of

Realized

Capital

Gains

Income

Earned

4/1/2021

-

3/31/2022

Affiliated

Short-Term

Investments

Core

Short-Term

Reserve,

0.660%

$–

$–

$–

$5

Total

Income/Non

Income

Cash

from

Affiliated

Investments

$5

Total

$–

$–

$–

Thrivent

Church

Loan

and

Income

Fund

Statement

of

Assets

and

Liabilities

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

statement.

13

As

of

March

31,

2022

Church

Loan

and

Income

Fund

Assets

Investments

in

unaffiliated

securities

at

cost

$39,589,309

Investments

in

affiliated

securities

at

cost

$2,333,911

Investments

in

unaffiliated

securities

at

value

$37,759,156

Investments

in

affiliated

securities

at

value

2,334,339

Cash

5,967,085

Dividends

and

interest

receivable

83,785

Prepaid

expenses

21,156

Receivable

for:

Investments

sold

on

a

delayed-delivery

basis

4,180,235

Expense

reimbursements

76,040

Total

Assets

50,421,796

Liabilities

Distributions

payable

1,084

Accrued

expenses

23,238

Payable

for:

Investments

purchased

on

a

delayed-delivery

basis

12,380,391

Fund

shares

activity

767

Investment

advisory

fees

36,252

Administrative

fees

560

Transfer

agent

fees

1,568

Contingent

liabilities^

—

Deferred

loan

commitment

fees

51,524

Mortgage

dollar

roll

deferred

revenue

14,489

Total

Liabilities

12,509,873

Net

Assets

Capital

stock

(beneficial

interest)

40,576,308

Distributable

earnings/(accumulated

loss)

(2,664,385)

Total

Net

Assets

$37,911,923

Class

S

Share

Capital

$37,911,923

Shares

of

beneficial

interest

outstanding

(Class

S)

3,869,430

Net

asset

value

per

share

$9.80

^

Contingent

liabilities

accrual.  Additional

information

can

be

found

in

the

accompanying

Notes

to

Financial

Statements.

Thrivent

Church

Loan

and

Income

Fund

Statement

of

Operations

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

statement.

14

$

For

the

year

ended

March

31,

2022

Church

Loan

and

Income

Fund

Investment

Income

Taxable

interest

$1,181,555

Income

from

mortgage

dollar

rolls

239,964

Income

from

affiliated

investments

5,082

Total

Investment

Income

1,426,601

Expenses

Adviser

fees

439,919

Administrative

service

fees

76,799

Audit

and

legal

fees

262,042

Custody

fees

4,797

Insurance

expenses

48,743

Printing

and

postage

expenses

Class

S

16,445

SEC

and

state

registration

expenses

25,550

Transfer

agent

fees

Class

S

18,756

Trustees'

fees

160,000

Pricing

service

fees

177,144

Other

expenses

27,407

Total

Expenses

Before

Reimbursement

1,257,602

Less:

Reimbursement

from

adviser

(857,676)

Total

Net

Expenses

399,926

Net

Investment

Income/(Loss)

1,026,675

Realized

and

Unrealized

Gains/(Losses)

Net

realized

gains/(losses)

on:

Investments

(567,677)

Change

in

net

unrealized

appreciation/(depreciation)

on:

Investments

(2,625,074)

Net

Realized

and

Unrealized

Gains/(Losses)

(3,192,751)

Net

Increase/(Decrease)

in

Net

Assets

Resulting

From

Operations

$(2,166,076)

Thrivent

Church

Loan

and

Income

Fund

Statements

of

Changes

in

Net

Assets

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

statement.

15

Church

Loan

and

Income

Fund

For

the

periods

ended

3/31/2022

3/31/2021

Operations

Net

investment

income/(loss)

$1,026,675

$838,809

Net

realized

gains/(losses)

(567,677)

(23,539)

Change

in

net

unrealized

appreciation/(depreciation)

(2,625,074)

27,715

Net

Change

in

Net

Assets

Resulting

From

Operations

(2,166,076)

842,985

Distributions

to

Shareholders

From

income/realized

gains

Class

S

(1,029,442)

(1,051,911)

Total

from

income/realized

gains

(1,029,442)

(1,051,911)

Total

Distributions

to

Shareholders

(1,029,442)

(1,051,911)

Capital

Stock

Transactions

Class

S  

Sold

5,778,345

9,559,931

Distributions

reinvested

1,012,846

1,047,779

Redeemed

(2,885,872)

(569,303)

Total

Class

S

Capital

Stock

Transactions

3,905,319

10,038,407

Capital

Stock

Transactions

3,905,319

10,038,407

Net

Increase/(Decrease)

in

Net

Assets

709,801

9,829,481

Net

Assets,

Beginning

of

Period

37,202,122

27,372,641

Net

Assets,

End

of

Period

$37,911,923

$37,202,122

Capital

Stock

Share

Transactions

Class

S

shares

Sold

546,059

883,631

Distributions

reinvested

96,725

96,513

Redeemed

(279,968)

(53,188)

Total

Class

S

share

transactions

362,816

926,956

Thrivent

Church

Loan

and

Income

Fund

Statement

of

Cash

Flows

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

statement.

16

For

the

year

ended

March

31,

2022

Church

Loan

and

Income

Fund

Cash

flows

from

operating

activities

Net

increase/(decrease)

in

net

assets

resulting

from

operations

$(2,166,076)

Adjustments

to

reconcile

net

change

in

net

assets

from

operations

to

net

cash

provided

by/(used

in)

operating

activities:

Purchases

of

long-term

investments

(139,813,919)

Purchases/sales

of

short-term

investments,

net

7,624,157

Proceeds

from

sale

of

long-term

investments

135,976,141

Change

in

net

unrealized

(appreciation)/depreciation

2,625,074

Net

realized

(gains)/losses

567,677

Net

accretion

of

bond

discounts

and

amortization

of

premiums

(1,247)

Net

change

in

payable

for

investments

purchased

on

a

delayed

delivery

basis

(3,866,352)

Net

change

in

receivable

for

investments

sold

on

a

delayed

delivery

basis

2,123,432

Net

change

in

receivable

for

investments

sold

5,251

Net

change

in

dividends

and

interest

receivable

(12,149)

Net

change

in

prepaid

expenses

(8,969)

Net

change

in

accrued

expenses

1,413

Net

change

in

investment

advisory

fees

(218)

Net

change

in

administrative

fees

(4)

Net

change

in

transfer

agent

fees

47

Net

change

in

expense

reimbursements

(18,094)

Net

change

in

deferred

loan

commitment

fees

10,399

Net

change

in

mortgage

dollar

roll

deferred

revenue

3,779

Net

cash

provided

by/(used

in)

operating

activities

$3,050,342

Cash

flows

provided

by/(used

in)

financing

activities:

Proceeds

from

shares

issued,

net

of

change

in

receivable

for

fund

shares

sold

5,809,540

Distributions

to

shareholders,

paid

in

cash,

net

of

change

in

distributions

payable

(16,423)

Cost

of

shares

redeemed,

net

of

change

in

payable

for

fund

shares

activity

(2,885,105

)

Net

cash

provided

by/(used

in)

financing

activities

$2,908,012

Net

increase/(decrease)

in

cash

$5,958,354

Cash

(beginning

balance)

$8,731

Cash

(ending

balance)

$5,967,085

Supplemental

disclosures

Non-cash

financing

activities

-

distributions

reinvested

$1,012,846

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2022

17

(1) ORGANIZATION

Thrivent

Church

Loan

and

Income

Fund

(the

“Fund”)

was

organized

as

a

Delaware

statutory

trust

on

October

23,

2017

and

is

registered

under

the

Investment

Company

Act

of

1940,

as

amended

(the

"1940

Act"),

as

a

non-diversified,

closed-end

management

investment

company

that

continuously

offers

its

shares

of

beneficial

interest

(the

"Shares"). 

The

Fund

currently

offers

one

class

of

Shares:

Class

S. 

The

Fund

has

authorized

an

unlimited

amount

of

Shares

with

no

par

value,

at

net

asset

value

("NAV")

per

Share. 

The

Fund

seeks

to

produce

income. 

 The

Fund

operates

as

an

interval

fund

pursuant

to

which it

conducts

quarterly

repurchase

offers

for

Shares,

which

are

for

between

5%

and

25%

of

the

Fund's

outstanding

Shares

at

NAV,

subject

to

approval

of

the

Fund's

Board

of

Trustees

("Board"). 

It

is

possible

that

a

repurchase

offer

may

be

oversubscribed,

with

the

result

that

shareholders

may

only

be

able

to

have

a

portion

of

their

Shares

repurchased. 

There

is

no

assurance

that

a

shareholder

will

be

able

to

tender

their

Shares

at

the

time

or

amount

desired. 

Shares

are

not

otherwise

redeemable. 

Quarterly

repurchase

offers

will

occur

in

the

months

of

March,

June,

September

and

December.

The Shares

are

not

listed

and

the

Fund

does

not

currently

intend

to

list

its

Shares

for

trading

on

any

national

securities

exchange. 

There

is

currently

no

secondary

market

for

its

Shares,

and

the

Fund

does

not

expect

a

secondary

market

in

its

Shares

to

develop. 

Even

though

the

Fund

makes

quarterly

repurchase

offers

for

Shares,

investors

should

consider

Shares

of

the

Fund

to

be

a

less liquid

investment.

The

Fund is an

investment

company that

follows

the

accounting

and

reporting

guidance

of

the

Financial

Accounting

Standards

Board

("FASB")

Accounting

Standards

Codification

Topic

946

–

"Financial

Services

–

Investment

Companies".

Under

the Fund's

organizational

documents,

its

officers

and

trustees

are

indemnified

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Fund.

In

addition,

in

the

normal

course

of

business,

the Fund

enters

into

contracts

with

service

providers

and

others

that

provide

general

indemnification

clauses.

The

Fund's

maximum

exposure

under

these

contracts

is

unknown,

as

this

would

involve

future

claims

that

may

be

made

against

the

Fund.

However,

based

on

experience,

the

Fund

expects

the

risk

of

loss

to

be

remote.

(2)

SIGNIFICANT

ACCOUNTING

POLICIES

Valuation

of

Investments 

—

The

Fund

records

its

investments

at

fair

value.

The

Board

has

authorized

the

Fund's

Investment

Adviser,

Thrivent

Asset

Management,

LLC

("Thrivent

Asset

Mgt."

or

the

"Adviser"),

to

make

fair

valuation

determinations

pursuant

to

policies

approved

by

the

Board

and

is

in

accordance

with

fair

valuation

accounting

standards. 

The

Fund

has

adopted

fair

valuation

accounting

standards

which

establish

an

authoritative

definition

of

fair

value

and

set out

a

hierarchy

for

measuring

fair

value.

Securities

traded

on

U.S.

or

foreign

securities

exchanges

or

included

in

a

national

market

system

are

valued

at

the

last

sale

price

on

the

principal

exchange

as

of

the

close

of

regular

trading

on

such

exchange

or

the

official

closing

price

of

the

national

market

system.  Over-the-counter

securities

and

listed

securities

for

which

no

price

is

readily

available

are

valued

at

the

current

bid

price

considered

best

to

represent

the

value

at

that

time.

Security

prices

are

based

on

quotes

that

are

obtained

from

an

independent

pricing

service

approved

by

the

Fund’s

Board.

The

pricing

service,

in

determining

values

of

fixed-income

securities,

takes

into

consideration

such

factors

as

current

quotations

by

broker/dealers,

coupon,

maturity,

quality,

type

of

issue,

trading

characteristics,

and

other

yield

and

risk

factors

it

deems

relevant

in

determining

valuations.

Securities

which

cannot

be

valued

by

the

approved

pricing

service

are

valued

using

valuations

obtained

from

dealers

that

make

markets

in

the

securities. Investments

in

open-ended

mutual

funds

are

valued

at

the

net

asset

value

per

share

as

a

practical

expedient at

the

close

of

each

business

day.

    All

church

loan

valuations

are

considered

fair

valuations

due

to

the

lack

of

observable

market

activity

or

independent

market

quotes. 

There

are

no

market

prices

available

for

church

loans. 

The Adviser

has

approved

two

methodologies

for

fair

valuing

church

loans:

a

Market

Approach

or

an

Income

Approach. 

The

Market

Approach

utilizes

a

process

that

takes

into

consideration

factors

including

principal

amount,

interest

rate,

term,

credit

quality

of

the

borrower,

prepayment

speeds, and

credit

spreads

based

on

market

transactions. 

The

Income

Approach

is

utilized

when

it

is

probable

that

the

church

loan

will

become

subject

to

foreclosure

and

takes

into

consideration

factors

including

the

estimated

value

of

property

securing

the

loan,

estimated

cost

of

disposition

of

the

property

and

estimated

time

to

dispose

of

the

property. 

The Board

may

use

a

third

party

vendor

to

execute

the

daily

valuation

methodology

or

the

Valuation

Committee

("Committee"),

further

described

below,

may

make

a

fair

valuation

determination.

The Adviser

has

formed

a Committee

that

is

responsible

for

overseeing

the

Fund's

valuation process

in

accordance

with

Valuation

Policies

and

Procedures.

The

Committee

meets monthly

and

on

an

as-needed

basis

to

review

price

challenges,

price

overrides,

stale

prices,

shadow

prices,

manual

prices, and

other

securities

requiring

fair

valuation. 

The

Committee

monitors significant

events

occurring

prior

to

the

close

of

trading

on

the

New

York

Stock

Exchange

that

could

have

a

material

impact

on

the

value

of

any

securities

that

are

held

by

the

Fund.

Examples

of

such

events

include

trading

halts,

national

news/events,

and

issuer-specific

developments.

If

the

Committee

decides

that

such

events

warrant the

use

of fair

value

estimates,

the

Committee

will

take

such

events

into

consideration

in

determining

the

fair

value

of

such

securities.

If

market

quotations

or

prices

are

not

readily

available

or

are

determined

to

be

unreliable,

the

securities

will

be

valued

at

fair

value

as

determined

in

good

faith

pursuant

to

procedures

adopted

by

the

Board.

In

accordance

with

accounting

principles

generally

accepted

in

the

United

States

of

America

("GAAP"),

the

various

inputs

used

to

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2022

18

determine

the

fair

value

of

the

Fund's

investments

are

summarized

in

three

broad

levels.  Level

1

includes

quoted

prices

in

active

markets

for

identical

securities,

typically

included

in

this

level

are

U.S.

equity

securities,

futures,

options

and

registered

investment

company

funds.  Level

2

includes

other

significant

observable

inputs

such

as

quoted

prices

for

similar

securities,

interest

rates,

prepayment

speeds

and

credit

risk,

typically

included

in

this

level

are

fixed

income

securities,

international

securities,

swaps

and

forward

contracts.  Level

3

includes

significant

unobservable

inputs

such

as

the

Adviser’s

own

assumptions

and

broker

evaluations

in

determining

the

fair

value

of

investments.

The

valuation

levels

are

not

necessarily

an

indication

of

the

risk

associated

with

investing

in

these

securities

or

other

investments. 

Investments

measured

using

net

asset

value

per

share

as

a

practical

expedient

for

fair

value

and

that

are

not

publicly

available

for

sale

are

not

categorized

within

the

fair

value

hierarchy.

Federal

Income Taxes 

—

No

provision

has

been

made

for

income

taxes

because

the

Fund’s

policy

is

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code

and

distribute

substantially

all

investment

company

taxable

income

and

net

capital

gain

on

a

timely

basis.

It

is

also

the

intention

of

the

Fund

to

distribute

an

amount

sufficient

to

avoid

imposition

of

any

federal

excise

tax.

The

Fund,

accordingly,

anticipates

paying

no

federal

taxes

and

no

federal

tax

provision

was

recorded.

The

Fund

may

utilize

earnings

and

profits

distributed

to

shareholders

on

the

redemption

of

Shares

as

part

of

the

dividends

paid

deduction.

GAAP

requires

management

of

the

Fund

(i.e.,

the

Adviser)

to

make

additional

tax

disclosures

with

respect

to

the

tax

effects

of

certain

income

tax

positions,

whether

those

positions

were

taken

on

previously

filed

tax

returns

or

are

expected

to

be

taken

on

future

returns.

These

positions

must

meet

a

“more

likely

than

not”

standard

that,

based

on

the

technical

merits

of

the

position,

it would

have

a

greater

than

50

percent

likelihood

of

being

sustained

upon

examination.

In

evaluating

whether

a

tax

position

has

met

the

more-

likely-than-not

recognition

threshold,

the

Adviser

must

presume

that

the

position

will

be

examined

by

the

appropriate

taxing

authority

that

has

full

knowledge

of

all

relevant

information.

The

Adviser

analyzed

all

open

tax

years,

as

defined

by

the

statute

of

limitations,

for

all

major

jurisdictions.

Open

tax

years

are

those

that

are

open

for

examination

by

taxing

authorities.

Major

jurisdictions

for

the

Fund

include

U.S.

Federal

and

certain

state

jurisdictions. The

Fund's

federal

income

tax

returns

are

subject

to

examination

for

a

period

of

three

years

after

the

filing

of

the

return

for

the

tax

period. State

returns

may

be

subject

to

examination

for

an

additional

year

depending

on

the

jurisdiction.

The

Fund

has

no

examinations

in

progress

and

none

are

expected

at

this

time.

As

of

March

31,

2022,

the

Adviser

has

reviewed

all

open

tax

years

and

major

jurisdictions

and

concluded

that

there

is

no

effect

to

the

Fund's

tax

liability,

financial

position

or

results

of

operations.

There

is

no

tax

liability

resulting

from

unrecognized

tax

benefits

related

to

uncertain

income

tax

positions

taken

or

expected

to

be

taken

in

future

tax

returns.

The

Fund

recognized

interest

and

penalties,

if

any,

related

to

uncertain

tax

benefits

as

income

tax

expense

in

the

Statement

of

Operations.

During

the

year,

the

Fund

did

not

incur

any

interest

or

penalties.

The

Fund

is

also

not

aware

of

any

tax

positions

for

which

it

is

reasonably

possible

that

the

total

amounts

of

unrecognized

tax

benefits

will

significantly

change

in

the

next

12

months.

Expenses

and

Income 

—

Estimated

expenses

are

accrued

daily.  The

Fund is

charged

for

those

expenses

that

are

directly

attributable

to

it.

Expenses

that

are

not

directly

attributable

to

the Fund

are

allocated

among

all

appropriate

affiliated

mutual

funds

in

proportion

to

their

respective

net

assets

or

number

of

shareholder

accounts,

or

other

reasonable

basis.

Interest

income

is recorded daily

on

all

debt

securities,

as

is

accretion

of

market

discount

and

original

issue

discount

and

amortization

of

premium

using

the

effective

yield

method. 

Dividend

income

and

capital

gain

distributions

are

recorded

on

the

ex-dividend

date. 

Non-cash

income,

if

any,

is

recorded

at

the

fair

market

value

of

the

securities

received. 

Realized

gains

and

losses

on

the

sale

of

securities

are

determined

using

cost

calculated

on

a

specific

identification

basis.

Distributions

to

Shareholders 

—

The

Fund

intends

to

distribute

most

or

all

of

its

net

earnings

and

realized

gains,

if

any,

in

the

form

of

dividends

from

net

investment

income

("dividends")

and

distributions

of

net

realized

capital

gains

("capital

gain

distributions,"

and

together

with

dividends,

"distributions").

The

Fund

intends

to

declare

dividends

daily

and

distribute

them

to

Shareholders

of

record

monthly.

Dividends and

interest

received

by

the

Fund are

derived

from

net

investment

income.

Capital

gain

distributions,

if

any,

usually

will

be

declared

and

paid

in

December

for

the

prior

twelve-month

period

ending October 31.

The

Fund

does

not

have

a

fixed

distribution

rate

nor

does

it

guarantee

that

it

will

pay

any

distributions

in

any

particular

period.

Mortgage

Dollar

Roll

Transactions 

— The

Fund

may enter

into

dollar

roll

transactions

on

securities

issued

or

to

be

issued

by

the

Government

National

Mortgage

Association,

Federal

National

Mortgage

Association

and

Federal

Home

Loan

Mortgage

Corporation,

in

which

the

Fund

sells

mortgage

securities

and

simultaneously

agrees

to

repurchase

similar

(same

type

and

coupon)

securities

at

a

later

date

at

an

agreed

upon

price.

The

Fund

must

maintain

liquid

securities

having

a

value

at

least

equal

to

the

repurchase

price

(including

accrued

interest)

for

such

dollar

rolls.

In

addition,

the

Fund is

required

to segregate

collateral

with the

Fund's

custodian (depending

on

market

movements)

on

their

mortgage

dollar

rolls. 

The

value

of

the

securities

that

the

Fund is

required

to

purchase

may

decline

below

the

agreed

upon

repurchase

price

of

those

securities.

During

the

period

between

the

sale

and

repurchase,

the

Fund

forgoes

principal

and

interest

paid

on

the

mortgage

securities

sold.

The

Fund is

compensated

from

negotiated

fees

paid

by

brokers

offered

as

an

inducement

to

the

Fund

to

"roll

over" its

purchase

commitments,

thus

enhancing

the

yield.

Mortgage

dollar

rolls

may

be

renewed

with

a

new

purchase

and

repurchase

price

and

a

cash

settlement

made

on

settlement

date

without

physical

delivery

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2022

19

of

the

securities

subject

to

the

contract. 

The

purchase

and

sale

transactions

may

increase

portfolio

turnover

rate. 

The

fees

received

are

recognized

over

the

roll

period

and

are

included

in

Income

from

mortgage

dollar

rolls

in

the

Statement

of

Operations.

When-Issued

and

Delayed-Delivery

Transactions 

—

The Fund

may

purchase

or

sell

securities

on

a

when-issued

or

delayed-delivery

basis.

These

transactions

involve

a

commitment

by the

Fund

to

purchase

or

sell

securities

for

a

predetermined

price

or

yield,

with

payment

and

delivery

taking

place

beyond

the

customary

settlement

period.

When

delayed-delivery

purchases

are

outstanding, the

Fund

will

designate

liquid

assets

in

an

amount

sufficient

to

meet

the

purchase

price.

When

purchasing

a

security

on

a

delayed-delivery

basis, the

Fund

assumes

the

rights

and

risks

of

ownership

of

the

security,

including

the

risk

of

price

and

yield

fluctuations,

and

takes

such

fluctuations

into

account

when

determining

its

net

asset

value.  The

Fund

may

dispose

of

a

delayed-delivery

transaction

after

it

is

entered

into,

and

may

sell

when-issued

securities

before

they

are

delivered,

which

may

result

in

a

capital

gain

or

loss.

When

the

Fund

has

sold

a

security

on

a

delayed-delivery

basis, the

Fund

does

not

participate

in

future

gains

and

losses

with

respect

to

the

security.

Accounting

Estimates 

—

The

financial

statements

are

prepared

in

conformity

with

GAAP,

which requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

and

disclosure

of

contingent

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

reported

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

Loan

Commitment

Fees 

— The

Fund

may

receive

loan

commitment

fees

prior

to

loan

closing

and

before

the

loan

is

purchased

by

the

Fund.

Commitment

fees

are

fees

a

lender

charges

the

borrower

in

order

to

keep

a

specific

loan

amount

available

to

the

borrower.

Any

such

fees

received

by

the

Fund, net

of

applicable

loan

origination

expenses

paid

by

the

Fund will

be

accounted

for

as

an

adjustment

to

the

yield

of

the

corresponding loan

using

the

straight-line

method

over

the

life

of

the

loan.

Contingent

Liabilities

— In

the event

of

adversary

action

proceedings

where

the

Fund

is

a

defendant,

the

loss

contingency

will

not

be

accrued

as

a

liability until

the

amount

of

potential

damages

and

the

likelihood

of

loss

can

be

reasonably

estimated. 

For

the period

ended

March

31,

2022,

the

Fund

had

no

reportable

contingent

liabilities. 

Litigation 

—

Awards

from

class

action

litigation

are

recorded

as

a

reduction

of

cost

if

the

Fund

still

owns

the

applicable

securities

on

the

payment

date. 

If

the

Fund

no

longer

owns

the

applicable

securities,

the

proceeds

are

recorded

as

realized

gains. 

Repurchase

Offers 

— The

Fund's

Shares

are

not

redeemable

each

business

day,

are

not

listed

for

trading

on

an

exchange,

and

no

secondary

market

currently

exists

for

Fund

Shares. 

As

an

interval

fund

and

as

described

in

the

Fund's

prospectus,

the

Fund

will make

quarterly

repurchase

offers

of

between

5% and

25% of

its

outstanding

Shares

at

NAV. 

During

the year

ended

March

31,

2022,

the

Fund had repurchase

offers

as

follows:  

For

the

offer

period

of

May

21,

2021

through

June

15,

2021:

For

the offer

period

of

August

20,

2021

through

September

15,

2021:

For

the

offer

period

of November

19,

2021

through

December

15,

2021: 

For

the

offer

period

of February

18,

2022

through March

15,

2022:  

Recent

Accounting

Pronouncements 

—

Reference

Rate

Reform

In

March

2020,

the

FASB

issued

Accounting

Standards

Update

("ASU")

No.

2020-04

Reference

Rate

Reform,

which

provides

optional

guidance

to

ease

the

potential

accounting

burden

associated

with

transitioning

from

the

London

Interbank

Offered

Rate

("LIBOR")

and

other

reference

rates

expected

to

be

discontinued.

The

ASU

No.

2020-04 was

effective

immediately

upon

release

of

the

standard

on

March

12,

2020

and

can

be

applied

prospectively through December

31,

2022.

At

this

time,

management

is

evaluating

implications

of

these

changes

on

financial

statement

disclosures. 

Management

is

also

currently

actively

working

with

other

financial

institutions

and

counterparties

to

modify

contracts

as

required

by

applicable

regulation

and

within

the

regulatory

deadline.

(3)

FEES

AND

COMPENSATION

PAID

TO

AFFILIATES

Investment

Advisory

Fees 

—

The

Fund

has

entered

into

an

Investment

Management

Agreement

with

Thrivent

Asset

Mgt. ("TAM").

 Under

the

Investment

Management

Agreement,

the

Repurchase

Pricing

Date

Repurchase

Offer

Amount

%

of

Shares

Tendered

Number

of

Shares

Tendered

6/16/2021

20%

0.8%

31,604

Repurchase

Pricing

Date

Repurchase

Offer

Amount

%

of

Shares

Tendered

Number

of

Shares

Tendered

9/16/2021

20%

1.2%

44,618

Repurchase

Pricing

Date

Repurchase

Offer

Amount

%

of

Shares

Tendered

Number

of

Shares

Tendered

12/16/2021

20%

2.0%

81,184

Repurchase

Pricing

Date

Repurchase

Offer

Amount

%

of

Shares

Tendered

Number

of

Shares

Tendered

3/16/2022

20%

2.8%

111,421

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2022

20

Fund

pays

an

annual

fee

of

1.10%

of

average

daily

net

assets

for

investment

advisory

services.

The

fees

are

accrued

daily

and

paid

monthly.

Expense

Reimbursements 

— The

Adviser

has

contractually

agreed

to

waive

fees

and/or

reimburse

expenses

of

the

Fund’s

Class

S

Shares

through

at

least

July

31,

2022

to

the

extent

that

the

total

annual

Fund

operating

expenses

exceed

1.00%

of

average

daily

net

assets

(excluding

taxes,

interest,

brokerage

commissions,

acquired

fund

fees

and

expenses,

securities

lending

fees,

expenses

associated

with

securities

sold

short,

litigation,

and

other

extraordinary

expenses). 

Expense

reimbursements

are

accrued

daily

and

paid

monthly.

Amounts

waived

by

the

Adviser

during

the

contractual

period

cannot

be

recouped

by

the

Adviser

in

subsequent

periods.

This

fee

waiver

may

not

be

terminated

before

the

indicated

termination

date

without

the

consent

of

the

Fund’s

Board,

including

a

majority

of

the

Trustees

who

are

not

“interested

persons”

of

the

Fund

as

defined

in

Section

2(a)(19)

of

the

1940

Act.

Other

Fees 

—

The

Fund

has

entered

into

an

agreement

with

Thrivent

Financial

Investor

Services

Inc.

("TFISI")

to

provide

transfer

agency

and

dividend

payment

services

necessary

to

the

Fund.

Under

the

Transfer

Agency

Agreement,

the

Fund

pays

TFISI

an

annual

fee

equal

to

three

basis

points

of

the

Fund’s

average

daily

net

assets,

plus

a

per

account

annual

maintenance

fee

of

$21.50

per

account.

The

fees

are

accrued

daily

and

paid

monthly.

The

Fund

has

entered

into

an

accounting

and

administrative

services

agreement

with

TAM pursuant

to

which

TAM

provides

certain

accounting

and

administrative

personnel

and

services

to

the

Fund.

The

Fund

pays

an

annual

fixed

fee

of

$70,000

plus

0.017%

of

average

daily

net

assets.

The

fees

are

accrued

daily

and

paid

monthly.  

The

Fund

enters

into

agreements

with

Thrivent

Financial

for

Lutherans

("TFL")

to

purchase

participation

interests

in

church

loans

underwritten

by

TFL. 

The

Fund

does

not

pay

TFL

a

transaction

or

origination

fee

for

such

service,

but

does

bear

a

pro

rata

share

of

the

certain

fees

and

expenses

associated

with

the

church

loans.

(4)

FEDERAL

INCOME

TAX

INFORMATION

Distributions

are

based

on

amounts

calculated

in

accordance

with

the

applicable

federal

income

tax

regulations,

which

may

differ

from

GAAP.

The

differences

between

book-basis

and

tax-basis

distributable

earnings

are

primarily

attributable

to

timing

differences

in

recognizing

organizational

costs

and

loan

commitment

fees.  At

the

end

of

the

fiscal

year,

reclassifications

between

net

asset

accounts

are

made

for

differences

that

are

permanent

in

nature. 

These permanent

differences primarily

relate

to

the

tax

treatment

of

loan

modifications,

trade

errors

and

class

action

settlements.  

During

the year

ended

March

31,

2022,

and

the year

ended

March

31,

2021

the

Fund

distributed

$1,021,685

and

$1,045,811

from

ordinary

income,

respectively. 

During

the

year

ended

March

31,

2022,

and

the

year

ended

March

31,

2021,

the

Fund distributed

$7,757

and

$6,100

from

long-term

gains,

respectively. 

At

March

31,

2022,

undistributed

ordinary

income

for

tax

purposes

was

$4,912. 

The

Fund

had

other

accumulated

losses

of

$(106,586).

At

March

31,

2022,

the

Fund

had

accumulated

net

capital

loss

carryovers as

follows: 

To

the

extent

that

the

Fund

realizes

future

net

capital

gains,

taxable

distributions

will

be

reduced

by

any

unused

capital

loss

carryovers

as

permitted

by

the

Internal

Revenue

Code. 

(5)

SECURITY

TRANSACTIONS 

Purchases

and

Sales

of

Investment

Securities 

—

For

the

year

ended

March

31,

2022,

the

cost

of

purchases

and

the

proceeds

from

sales

of

investment

securities,

other

than

U.S.

Government

and

short-term

securities,

were

as

follows:

Purchases

and

sales

of

U.S.

Government

securities

were:

Investments

in

Restricted

Securities 

—

The

Fund

may

own

restricted

securities which

were

purchased

in

private

placement

transactions

without

registration

under

the

Securities

Act

of

1933.

Unless

such

securities

subsequently

become

registered,

they

generally

may

be

resold

only

in

privately

negotiated

transactions

with

a

limited

number

of

purchasers.

As

of

March

31,

2022,

the

Fund

did

not

hold

restricted

securities. 

The

Fund

has

no

right

to

require

registration

of

unregistered

securities. 

(6)

RELATED

PARTY

TRANSACTIONS

The

Fund’s

Adviser

and

Administrator,

TAM,

the

Fund’s

distributor,

Thrivent

Distributors,

LLC,

and

the

Fund’s

transfer

agent,

TFISI,

are

considered

related

parties

to

the

Fund.

Certain

officers

and

Trustees

of

the

Fund

are

officers

and

directors

of

TAM and

TFISI. 

As

of

March

31,

2022,

related

parties

held 75.1%

of

the

outstanding

Shares

of

the

Fund.

Subscription

and

redemption

activity

by

concentrated

accounts

may

have

a

significant

effect

on

the

operation

of

the

Fund. 

In

the

case

of

a

large

redemption,

the

Fund

may

be

forced

to

sell

investments

at

inopportune

times,

resulting

in

additional

losses

for

the

Fund.

Fund

Capital

Loss

Carryover

Church

Loan

and

Income

Fund

$

732,775

In

thousands

Fund

Purchases

Sales/

Paydowns

Church

Loan

and

Income

Fund

$9,057

$3,933

In

thousands

Fund

Purchases

Sales/

Paydowns

Church

Loan

and

Income

Fund

$130,757

$132,044

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2022

21

(7)

SUBSEQUENT

EVENTS

The

Adviser

of

the

Fund

has

evaluated

the

impact

of

subsequent

events

through

the

issuance

date

of

the

financial

statements,

and

has

determined

that

no

items

require

disclosure

in

or

adjustment

to

the

financial

statements. 

(8) MARKET

RISK

Over

time,

securities

markets

generally

tend

to

move

in

cycles

with

periods

when

security

prices

rise

and

periods

when

security

prices

decline. 

The

value

of

a

Fund's

investments

may

move

with

these

cycles

and,

in

some

instances,

increase

or

decrease

more

than

the

applicable

market(s)

as

measured

by

the

Fund's

benchmark

index(es).

The

securities

markets

may

also

decline

because

of

factors

that

affect

a

particular

industry

or

market

sector,

or

due

to

impacts

from

domestic

or

global

events,

including

the

spread

of

infectious

illness,

public

health

threats,

war,

terrorism,

natural

disasters

or

similar

events.

As

of March

31,

2022,

the Fund

had

portfolio

concentration

of

78.6%

in Church

Loans.

(9)

SIGNIFICANT

RISKS

Church

Loan

Related

Risks

— In

making

investments

in

Church

Loans,

the

Fund

will

depend

primarily

on

the

creditworthiness

of

the

borrower

for

payment

of

principal

and

interest.

Churches

rely

on

voluntary

contributions

from

their

congregations

for

their

primary

source

of

income.

Member

contributions

are

used

to

repay

Church

Loans.

The

membership

of

a

church,

the

attendance

of

its

members,

or

the

per

capita

contributions

of

its

members

may

not

remain

constant

or

may

decrease

during

the

term

of

a

Church

Loan.

A

decrease

in

a

church’s

income

could

result

in

its

inability

to

pay

its

obligation

under

a

Church

Loan. 

A

church’s

senior

pastor

also

plays

an

important

role

in

the

management

and

continued

viability

of

a

church.

A

senior

pastor’s

absence,

personal

actions,

resignation

or

death

could

have

a

negative

impact

on

a

borrower’s

operations,

and

thus

its

continued

ability

to

generate

income

sufficient

to

service

its

obligations

under

a

Church

Loan.

National

church

body

decisions

can

impact

individual

church

membership.

Certain

independent

churches

have

little

to

no

financial

support

from

national

church

bodies;

likewise,

national

church

bodies

have

limited

resources

available

for

individual

church

support.

A

church’s

income

also

could

be

affected

by

increases

in

expenses

caused

by

increases

in

interest

rates

on

variable

rate

Church

Loans,

the

occurrence

of

any

uninsured

casualty

at

the

property,

any

need

to

address

environmental

contamination

at

the

property,

changes

in

governmental

rules,

regulations

and

fiscal

policies,

terrorism,

social

unrest

or

civil

disturbances.

Due

to

the

corporate

structure

of

borrowers,

which

can

include

volunteers

serving

in

key

executive

functions

such

as

Treasurer,

the

servicing

agent

administering

Church

Loans

may

use

broad

discretion

in

enforcing

the

terms

of

such

Church

Loans,

especially

with

regard

to

timing

and

fees

charged.

Valuation

Risk

—

The

lack

of

an

active

trading

market

for

Church

Loans,

restrictions

on

transfers

in

some

church

mortgage

loan

agreements

and

trust

indentures,

a

lack

of

publicly

available

information,

and

other

factors

may

result

in

inherent

uncertainty

in

the

valuation

process

for

Church

Loans,

and

the

estimated

fair

values

may

differ

materially

from

the

values

estimated

by

another

party

or

the

values

that

would

have

been

used

had

a

ready

market

for

the

Church

Loans

existed.

To

the

extent

the

Fund

invests

in

Church

Loans,

the

Fund’s

calculated

NAV

may

not

accurately

reflect

the

value

that

could

be

obtained

for

any

Church

Loan

upon

sale.

The

value

of

the

Church

Loan

will

be

determined

in

good

faith

pursuant

to

fair

valuation

procedures

adopted

by

the

Fund’s

Board.

The

Board

has

delegated

the

responsibility

to

estimate

the

fair

value

of

Church

Loans

to

the

Adviser.

The

fair

valuation

of

Church

Loans

by

the

Adviser

could

result

in

a

conflict

of

interest

as

the

Adviser’s

advisory

fee

is

based

on

the

value

of

the

Fund’s

net

assets.

Concentration

Risk

—

Under

normal

circumstances,

the

Fund

will

concentrate

its

investments

in

the

securities

and/or

other

instruments

of

U.S.

non-profit

organizations

that

have

a

stated

Christian

mission

including,

but

not

limited

to,

churches,

denominations

and

associations,

educational

institutions,

and

other

Christian

mission-

related

organizations.

The

Fund

will

thus

be

exposed

to

negative

developments

affecting

church-related

institutions,

as

well

as

negative

developments

affecting

real

estate-related

investments

and

real

property

generally.

These

factors

are

discussed

under

“Church

Loan

Related

Risks”

and

“Collateral

Risk;

Real

Estate

Risk”

below. 

Prepayment

Risk

—

Generally,

borrowers

may

prepay

the

principal

amount

of

their

Church

Loans

at

any

time,

although

prepayment

fees

or

penalties

may

apply.

In

periods

of

falling

interest

rates,

borrowers

may

be

more

likely

to

prepay

their

Church

Loans

to

refinance

at

lower

interest

rates.

When

economic

conditions

make

it

more

likely

that

borrowers

will

prepay

Church

Loans,

the

value

of

such

loans

may

fluctuate,

and

the

value

of

the

Shares

may

be

impacted.

Prepayment

would

cause

the

actual

duration

of

a

Church

Loan

to

be

shorter

than

its

stated

maturity.

See

“Duration

and

Maturity

Risk”

below.

In

the

event

of

a

full

prepayment,

the

Fund

would

lose

the

income

that

would

have

been

earned

to

maturity

on

the

Church

Loan.

Further,

material

partial

principal

prepayments

of

Church

Loans

may

result

in

a

reamortization

of

the

remaining

principal

balance

over

the

current

maturity,

which

would

mean

the

Fund

would

receive

lower

payments

of

principal

and

interest

over

the

remaining

term

of

the

Church

Loan.

The

proceeds

received

by

the

Fund

from

prepayments

may

be

reinvested

in

Church

Loans

or

other

debt

securities

paying

lower

interest

rates. 

Refinance

Risk

—

Generally,

borrowers

may

refinance

their

Church

Loans

at

any

time.

A

refinance

of

an

existing

Fund

Church

Loan

with

Thrivent

Financial

will

result

in

a

modification

of

the

loan

terms

and

the

loan

being

repriced

at

par.

A

refinance

with

another

lender

will

result

in

the

loan

being

paid

off

at

par.

In

both

situations,

a

loss

may

occur

on

the

Church

Loan

if

it

is

valued

at

a

price

above

par

at

the

time

of

the

refinance. 

Modification

Risk

—

During

periods

of

market

uncertainty

or

an

economic

downturn,

borrowers

may

request

relief

from

the

terms

of

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2022

22

their

Church

Loans.

In

such

situations,

Thrivent

Financial,

as

lender,

will

generally

accommodate

such

requests

and

assist

the

borrower

in

returning

to

financial

stability.

Certain

accommodations,

such

as

forbearance

measures,

changes

to

maturity,

and

changes

to

interest

rates

are

granted

in

the

sole

discretion

of

the

Adviser

and

subject

to

ratification

by

the

Fund’s

Board.

There

may

also

be

regulatory

requirements

that

limit

the

Fund’s

options

regarding

a

modification

request.

These

modification

measures

could

cause

principal

and/

or

interest

payments

from

borrowers

to

decrease

temporarily

and

the

value

of

loans

held

by

the

Fund

to

decline.

While

modification

measures

may

be

taken

to

avoid

a

potential

default,

the

value

of

the

Fund

could

be

negatively

impacted. 

Availability

of

Investment

Opportunities;

Competition

Risks

—

Thrivent

Financial

and

the

Fund

compete

for

investment

opportunities

with

Church

Loan

financing

companies,

banks,

savings

and

loan

associations,

denominational

loan

funds

and

lenders,

credit

unions,

real

estate

investment

trusts,

insurance

companies

and

other

financial

institutions

to

service

this

market.

Many

of

these

entities

may

have

greater

marketing

resources,

extensive

networks

of

offices

and

locations,

or

larger

staffs

devoted

to

Church

Loan

financing.

In

addition,

regulatory

restrictions,

actual

or

potential

conflicts

of

interest

or

other

considerations

may

cause

the

Adviser

to

restrict

or

prohibit

participation

in

certain

investments. 

Collateral

Risk;

Real

Estate

Risk

—

There

is

a

risk

that

the

value

of

any

collateral

securing

a

Church

Loan

in

which

the

Fund

has

an

interest

may

not

be

estimated

correctly

or

may

decline

and

that

the

collateral

may

not

be

sufficient

to

cover

the

amount

owed

on

the

loan. 

Prior

to

the

funding

of

each

Church

Loan,

a

valuation

of

the

collateral

is

typically

obtained.

Collateral

valuation

is

assessed

at

the

time

of

origination

and

may

change

over

time.

Updates

to

the

valuation

of

the

collateral

are

obtained

when

a

specific

need

occurs.

Also,

collateral

valuation

tools

vary

based

upon

appraisal

company,

appraiser,

scope

of

the

appraisal,

and

may

include

the

use

of

alternative

valuation

tools

(e.g.,

tax

assessments,

etc.). 

Because

the

Fund’s

Church

Loans

are

primarily

backed

by

real

estate,

these

investments

are

vulnerable

to

factors

that

affect

the

real

estate

used

to

collateralize

the

Church

Loans

and

the

local

and

national

real

estate

markets.

Factors

affecting

the

value

of

real

estate

investments

include,

but

are

not

limited

to,

changes

in

local

or

national

economic

or

employment

conditions,

changes

in

interest

rates,

zoning

laws

or

property

taxes,

supply

and

demand,

environmental

problems,

losses

from

a

casualty

or

condemnation,

maintenance

problems,

operating

expenses,

population

changes,

and

social

and

economic

trends.

Property

tax

liens

would

also

affect

the

availability

of

cash

to

pay

other

creditors

in

the

event

of

a

sale

of

the

real

estate,

through

foreclosure

or

otherwise.

Furthermore,

in

the

case

of

certain

Church

Loans,

the

property

backing

the

investments

may

have

limited

suitability

for

other

purposes.

Default

Risk

—

Default

in

the

payment

of

interest

or

principal

on

a

Church

Loan

or

an

increased

risk

of

default

may

result

in

a

reduction

in

income

to

the

Fund,

a

reduction

in

the

value

of

a

Church

Loan

and/or

a

decrease

in

the

Fund’s

NAV

per

Share.

The

risk

of

default

increases

in

the

event

of

an

economic

downturn,

a

decline

in

the

value

of

real

estate,

or

a

substantial

increase

in

interest

rates

on

variable

rate

Church

Loans.

In

the

event

of

any

default

under

a

Church

Loan,

the

Fund

will

bear

a

risk

of

loss

of

principal

to

the

extent

of

any

deficiency

between

the

value

of

any

collateral

that

is

liquidated

and

the

principal

and

accrued

and

unpaid

interest

of

the

Church

Loan.

Efforts

to

return

a

non-performing

Church

Loan

to

performing

status

can

be

lengthy

and

may

negatively

affect

the

Fund’s

anticipated

return.

In

the

event

a

borrower

defaults,

the

Fund’s

access

to

the

collateral

may

be

limited

or

delayed

by

bankruptcy

or

other

insolvency

laws.

Illiquid

Securities

Risk

—

Church

Loans

are

typically

not

listed

on

any

national

securities

exchange

or

automated

quotation

system

and

no

active

trading

market

exists

for

these

instruments.

Some

Church

Loans

also

contain

restrictions

on

transfers

and

there

is

a

lack

of

publicly

available

information

on

most

Church

Loans.

As

a

result,

Church

Loans

are

generally

considered

illiquid.

To

the

extent

consistent

with

the

applicable

liquidity

requirements

for

interval

funds

set

forth

in

Rule

23c-3

under

the

1940

Act,

the

Fund

may

invest

without

limit

in

illiquid

securities

and

at

any

given

time,

the

Fund’s

portfolio

may

be

substantially

illiquid. 

The

market

for

illiquid

securities

may

be

more

volatile

than

the

market

for

liquid

securities.

To

the

extent

that

a

secondary

market

does

exist

for

Church

Loans,

the

market

may

be

subject

to

irregular

trading

activity,

wide

bid/ask

spreads

and

extended

trade

settlement

periods.

The

illiquid

market

for

Church

Loans

means

that

the

Fund

may

not

be

able

to

sell

its

holdings

at

a

time

when

it

may

otherwise

be

desirable

to

do

so

or

may

require

the

Fund

to

sell

at

prices

that

are

less

than

what

the

Fund

regards

as

their

fair

market

value,

which

would

adversely

affect

the

Fund’s

NAV

per

share.

In

addition,

due

to

the

illiquidity

of

the

Church

Loan

market,

and

the

intent

to

hold

Church

Loans

to

maturity,

the

Fund

may

be

limited

in

its

ability

to

turn

over

its

investments

in

Church

Loans

to

obtain

debt

securities

with

more

attractive

rates

of

return.

Church

Loans

are

typically

valued

using

significant

unobservable

inputs.

Market

quotations

or

prices

are

likely

not

readily

available

or

may

be

determined

to

be

unreliable.

Value

will

be

determined

in

good

faith

pursuant

to

fair

valuation

procedures

adopted

by

the

Board.

See

“Valuation

Risk”

above.

Certain

Church

Loans

may

trade

in

an

over-the-counter

market,

and

confirmation

and

settlement

may

take

significantly

longer

than

traditional

fixed-income

security

transactions

to

complete.

Transactions

in

Church

Loans

may

settle

on

a

delayed

basis,

and

the

Fund

may

not

receive

the

proceeds

from

the

sale

of

a

loan

for

a

substantial

period

after

the

sale.

As

a

result,

those

proceeds

will

not

be

available

to

make

additional

investments.

In

most

cases,

the

Fund

intends

to

hold

Church

Loans

to

maturity.

Assignment

or

Participation

Risk

—

The

Fund

may

acquire

exposure

to

church

mortgage

loans

through

loan

assignments

or

participations.

With

assignments,

the

purchaser

typically

succeeds

to

all

the

rights

and

obligations

of

the

assigning

institution

and

becomes

a

lender

under

the

loan

agreement.

By

contrast,

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2022

23

participations

typically

result

in

contractual

relationships

only

with

the

institution

participating

out

the

interest,

not

with

the

borrower.

In

purchasing

participations,

the

Fund

generally

will

have

no

right

to

directly

enforce

compliance

by

the

borrower

with

the

terms

of

the

loan

agreement.

The

Fund

also

will

be

exposed

to

the

credit

risk

of

both

the

borrower

and

the

institution

selling

the

participation. 

No

Public

Information;

Not

Rated

Risk

—

There

is

generally

no

publicly

available

information

about

the

borrowers

of

Church

Loans.

In

addition,

Church

Loans

are

not

rated

by

NRSROs

or

other

independent

parties.

The

Adviser

must

rely

on

the

borrowers,

its

own

due

diligence

and/or

the

due

diligence

efforts

of

Thrivent

Financial,

its

affiliates,

or

unaffiliated

third

parties

to

obtain

the

information

that

the

Adviser

considers

when

investing

in

Church

Loans.

To

some

extent,

the

Adviser,

its

affiliates,

or

unaffiliated

third

parties

rely

upon

the

borrower’s

staff

to

provide

full

and

accurate

disclosure

of

material

information

concerning

their

operations

and

financial

condition.

The

Adviser,

its

affiliates,

or

unaffiliated

third

parties

may

not

have

access

to

all

of

the

material

information

about

a

particular

borrower’s

operations,

financial

condition

and

prospects,

or

a

borrower’s

accounting

records

may

be

poorly

maintained

or

organized.

The

financial

condition

and

prospects

of

a

borrower

may

also

change

rapidly.

In

such

instances,

the

Adviser

may

not

be

able

to

make

a

fully

informed

investment

decision

which

may

lead,

ultimately,

to

a

default

by

the

borrower

and

a

loss

of

some

or

all

of

the

Fund’s

investment. 

Special

Risks

—

Special

risks

associated

with

exposures

to

Church

Loans

include

(i)

the

possible

invalidation

of

an

investment

transaction

as

a

fraudulent

conveyance

under

relevant

creditors’

rights

laws

and

(ii)

so-called

lender-liability

claims

by

the

borrowers

of

the

obligations.

Successful

claims

with

respect

to

such

matters

may

reduce

the

cash

flow

and/or

market

value

of

the

investment.

Church

Loans

are

subject

to

the

risk

that

a

court,

pursuant

to

fraudulent

conveyance

or

other

similar

laws,

could

subordinate

these

instruments

to

presently

existing

or

future

indebtedness

of

the

borrower

or

take

other

action

detrimental

to

holders

of

the

Church

Loan.

Variable

or

Floating

Interest

Rate

Risk

—

Church

mortgage

loans

may

have

interest

rates

that

float

above,

or

are

adjusted

periodically

based

on,

a

benchmark

that

reflects

current

interest

rates.

Substantial

increases

in

interest

rates

may

cause

an

increase

in

loan

defaults

as

borrowers

may

lack

resources

to

meet

higher

debt

service

requirements.

Increasing

interest

rates

may

hinder

a

borrower’s

ability

to

refinance

church

mortgage

loans

because

the

underlying

property

cannot

satisfy

the

debt

service

coverage

requirements

necessary

to

obtain

new

financing

or

because

the

value

of

the

property

has

decreased.

Additionally,

certain

church

mortgage

loans

will

have

interest

rate

resets,

and

may

result

in

decreases

in

interest

rates.

Decreases

in

interest

rates

will

typically

cause

interest

rates

on

the

church

mortgage

loans

to

decrease,

thereby

reducing

income

to

the

Fund. 

Closed-End,

Interval

Fund

Structure

Risk

—

The

Fund

is

a

closed-end

management

investment

company

structured

as

an

“interval

fund”

and

designed

for

long-term

investors.

The

Fund

is

not

intended

to

be

a

typical

traded

investment.

Unlike

many

closed-end

investment

companies,

the

Fund’s

Shares

are

not

listed

on

any

national

securities

exchange

and

are

not

publicly

traded.

There

is

no

secondary

market

for

the

Shares,

and

the

Fund

does

not

expect

a

secondary

market

will

develop.

An

investor

should

not

invest

in

the

Fund

if

the

investor

needs

a

liquid

investment.

Closed-end

funds

differ

from

open-end

management

investment

companies,

commonly

known

as

“mutual

funds,”

in

that

investors

in

a

closed-end

fund

do

not

have

the

right

to

redeem

their

shares

on

a

daily

basis

at

a

price

based

on

NAV

per

share.

The

Fund,

as

a

fundamental

policy,

will

make

quarterly

offers

to

repurchase

at

least

5%

and

up

to

25%

of

its

outstanding

Shares

at

NAV

per

share,

subject

to

approval

of

the

Board.

The

number

of

Shares

tendered

in

connection

with

a

repurchase

offer

may

exceed

the

number

of

Shares

the

Fund

has

offered

to

repurchase,

in

which

case

not

all

of

your

Shares

tendered

in

that

offer

will

be

repurchased.

Hence,

you

may

not

be

able

to

sell

your

Shares

when

and/or

in

the

amount

that

you

desire.

Credit

Risk

—

Credit

risk

is

the

risk

that

an

issuer

of

a

debt

security

to

which

the

Fund’s

portfolio

is

exposed

may

no

longer

be

able

or

willing

to

pay

its

debt.

As

a

result

of

such

an

event,

the

debt

security

may

fluctuate

in

price

and

affect

the

value

of

the

Fund.

A

credit

assessment

of

each

Church

Loan

is

completed

at

the

time

of

original

underwriting.

From

time

to

time,

as

additional

or

updated

information

regarding

the

borrower

is

received,

credit

assessments

are

reviewed

and

can

be

adjusted

up

or

down.

Repurchase

Offers

Risk

—

The

Fund

is

a

closed-end

investment

company

structured

as

an

“interval

fund”

and

is

designed

for

long-term

investors.

There

is

no

secondary

market

for

the

Shares

and

the

Fund

expects

that

no

secondary

market

will

develop.

In

order

to

provide

liquidity

to

Shareholders,

the

Fund,

subject

to

applicable

law,

conducts

quarterly

repurchase

offers

of

its

outstanding

Shares

at

NAV

per

share,

subject

to

approval

of

the

Board.

In

all

cases,

such

repurchase

offers

will

be

for

at

least

5%

and

not

more

than

25%

of

its

outstanding

Shares,

at

NAV

per

share,

pursuant

to

Rule

23c-3

under

the

1940

Act.

Repurchases

generally

will

be

funded

from

available

cash

or

sales

of

portfolio

securities.

However,

if

at

any

time

cash

and

other

liquid

assets

held

by

the

Fund

are

not

sufficient

to

meet

the

Fund’s

repurchase

obligations,

the

Fund

may,

if

necessary,

sell

investments.

The

sale

of

securities

to

fund

repurchases

could

reduce

the

market

price

of

those

securities,

which

in

turn

would

reduce

the

Fund’s

NAV

per

share.

The

Fund

is

also

permitted

to

borrow

up

to

the

maximum

extent

permitted

under

the

1940

Act

to

meet

such

repurchase

obligations.

The

Fund

does

not

currently

intend

to

borrow

to

finance

repurchases,

although

it

may

invest

in

mortgage

dollar

roll

transactions.

Moreover,

a

reduction

in

the

size

of

the

Fund

through

repurchases

may

result

in

untimely

sales

of

portfolio

securities,

may

increase

the

Fund’s

portfolio

turnover,

and

may

limit

the

ability

of

the

Fund

to

participate

in

new

investment

opportunities

or

to

achieve

its

investment

objective.

If

a

repurchase

offer

is

oversubscribed,

the

Fund

will

repurchase

the

Shares

tendered

on

a

pro

rata

basis,

and

Shareholders

will

have

to

wait

until

the

next

repurchase

offer

to

make

another

repurchase

request.

As

a

result,

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2022

24

Shareholders

may

be

unable

to

liquidate

all

or

a

given

percentage

of

their

investment

in

the

Fund

during

a

particular

repurchase

offer.

A

Shareholder

may

be

subject

to

market

and

other

risks,

and

the

NAV

per

share

of

Shares

tendered

in

a

repurchase

offer

may

decline

between

the

Repurchase

Request

Deadline

and

the

date

on

which

the

NAV

per

share

for

tendered

Shares

is

determined.

In

addition,

to

the

extent

the

Fund

sells

portfolio

holdings

in

order

to

fund

repurchase

requests,

the

repurchase

of

Shares

by

the

Fund

will

be

a

taxable

event

for

the

Shareholders

of

repurchased

Shares,

and

potentially

even

for

Shareholders

that

do

not

participate

in

the

repurchase

offer.  

Limited

Distribution

Risk

—

If

the

Distributor

fails

to

market

the

Fund

and

establish

and

maintain

a

network

of

selected

broker-dealers

to

sell

the

Shares,

the

Fund

may

not

be

able

to

raise

adequate

proceeds

through

the

Fund’s

continuous

public

offering

to

implement

the

Fund’s

investment

objective

and

strategies. 

Duration

and

Maturity

Risk

—

The

prices

of

debt

securities

are

also

affected

by

their

durations

and

maturities.

Duration

is

a

measure

used

to

determine

the

sensitivity

of

a

security’s

price

to

changes

in

interest

rates.

The

longer

a

security’s

duration,

the

more

sensitive

it

will

be

to

changes

in

interest

rates.

For

example,

if

a

bond

has

a

duration

of

four

years,

a

1%

increase

in

interest

rates

could

be

expected

to

result

in

a

4%

decrease

in

the

value

of

the

bond.

A

debt

security’s

maturity

is

typically

determined

on

a

stated

final

maturity

basis,

although

there

are

some

exceptions

to

this

rule.

Debt

securities

with

longer

maturities

generally

are

more

susceptible

to

changes

in

value

as

a

result

of

changes

in

interest

rates.

The

Fund

may

invest

in

debt

securities

of

any

duration

or

maturity.

Interest

Rate

Risk

—

Interest

rate

risk

is

the

risk

that

prices

of

debt

securities

decline

in

value

when

interest

rates

rise

for

debt

securities

that

pay

a

fixed

rate

of

interest.

Debt

securities

with

longer

durations

or

maturities

tend

to

be

more

sensitive

to

changes

in

interest

rates

than

those

with

shorter

durations

or

maturities.

Changes

by

the

Federal

Reserve

to

monetary

policies

could

affect

interest

rates

and

the

value

of

some

securities.

Debt

securities

in

which

the

Fund

may

invest

will

have

varying

maturities,

which

may

be

as

long

as

30

years.

If

interest

rates

rise

generally,

rates

of

return

on

debt

securities

held

by

the

Fund

may

become

less

attractive

and

the

value

of

debt

securities

held

by

the

Fund,

and

the

Fund’s

Shares,

may

decline.

This

risk

tends

to

increase

the

longer

the

term

of

the

debt

security. 

Mortgage-Backed

Securities

Risk

—

The

Fund

may

invest

in

mortgage-backed

securities

issued

or

guaranteed

by

the

U.S.

government

or

its

agencies

and

instrumentalities

(such

as

securities

issued

by

the

Government

National

Mortgage

Association

(“Ginnie

Mae”),

the

Federal

National

Mortgage

Association

(“Fannie

Mae”),

or

the

Federal

Home

Loan

Mortgage

Corporation

(“Freddie

Mac”)).

U.S.

government

mortgage-backed

securities

are

subject

to

market

risk,

interest

rate

risk

and

credit

risk.

Mortgage-backed

securities,

such

as

those

issued

or

guaranteed

by

Ginnie

Mae

or

the

U.S.

Treasury,

that

are

backed

by

the

full

faith

and

credit

of

the

United

States

are

guaranteed

only

as

to

the

timely

payment

of

interest

and

principal

when

held

to

maturity

and

the

market

prices

for

such

securities

will

fluctuate.

Notwithstanding

that

these

securities

are

backed

by

the

full

faith

and

credit

of

the

United

States,

circumstances

could

arise

that

would

prevent

the

payment

of

interest

or

principal.

This

would

result

in

losses

to

the

Fund.

Securities

issued

or

guaranteed

by

U.S.

government

related

organizations,

such

as

Fannie

Mae

and

Freddie

Mac,

are

not

backed

by

the

full

faith

and

credit

of

the

U.S.

government

and

no

assurance

can

be

given

that

the

U.S.

government

will

provide

financial

support.

Therefore,

U.S.

government-related

organizations

may

not

have

the

funds

to

meet

their

payment

obligations

in

the

future.

Mortgage-backed

securities

are

sensitive

to

changes

in

the

repayment

patterns

of

the

underlying

security.

If

the

principal

payment

on

the

underlying

asset

is

repaid

faster

or

slower

than

the

holder

of

the

mortgage-backed

security

anticipates,

the

price

of

the

security

may

fall,

particularly

if

the

holder

must

reinvest

the

repaid

principal

at

lower

rates

or

must

continue

to

hold

the

security

when

interest

rates

rise.

This

effect

may

cause

the

value

of

the

Fund

to

decline

and

reduce

the

overall

return

of

the

Fund.

Mortgage-backed

securities

are

also

subject

to

the

risk

of

delinquencies

on

mortgage

loans

underlying

such

securities.

An

unexpectedly

high

rate

of

defaults

on

the

mortgages

held

by

a

mortgage

pool

may

adversely

affect

the

value

of

a

mortgage-

backed

security

and

could

result

in

losses

to

the

Fund.

The

Fund

may

enter

into

dollar

rolls

on

mortgage-backed

securities

to

maintain

liquid

assets

in

connection

with

its

repurchase

offers

or

to

meet

repurchase

requests.

Dollar

rolls

on

mortgage-backed

securities

involve

the

risk

that

the

market

value

of

the

securities

subject

to

the

Fund’s

forward

purchase

commitment

may

decline

below,

or

the

market

value

of

the

mortgage-backed

securities

subject

to

the

Fund’s

forward

sale

commitment

may

increase

above,

the

exercise

price

of

the

forward

commitment.

Investment

Adviser

Risk

—

The

Fund

is

actively

managed

and

the

success

of

its

investment

strategy

depends

significantly

on

the

skills

of

the

Adviser

in

assessing

the

potential

of

the

investments

in

which

the

Fund

invests.

This

assessment

of

investments

may

prove

incorrect,

resulting

in

losses

or

poor

performance,

even

in

rising

markets.

Liquidity

Risk

—

If

there

is

decreased

liquidity

in

the

markets,

the

Adviser

may

have

to

accept

a

lower

price

to

sell

a

security,

sell

other

securities

to

raise

cash,

or

give

up

an

investment

opportunity,

any

of

which

could

have

a

negative

effect

on

performance. 

Health

Crisis

Risk

—

The

global

pandemic

outbreak

of COVID-19

has

resulted

in

substantial

market

volatility

and

global

business

disruption.

The

COVID-19

outbreak

and

future

pandemics

could

affect

the

global

economy

and

markets

in

ways

that

cannot

be

foreseen

and

may

exacerbate

other

types

of

risks,

negatively

impacting

the

value

of

Fund

investments. 

Non-Diversification

Risk

—

Since

the

Fund

is

non-diversified,

it

may

invest

a

high

percentage

of

its

assets

in

a

limited

number

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2022

25

of

issuers.

When

the

Fund

invests

in

a

relatively

small

number

of

issuers

it

may

be

more

susceptible

to

risks

associated

with

a

single

economic,

political

or

regulatory

occurrence

than

a

more

diversified

portfolio

might

be.

Since

the

Fund

is

non-diversified,

its

NAV

per

share

and

total

return

may

also

fluctuate

more

or

be

subject

to

declines

in

weaker

markets

than

a

diversified

fund.

Seed

Capital

Risk

—

In

order

to

maintain

liquidity,

in

particular

during

a

repurchase

offer

period,

the

Fund

may

rely

on

seed

investments

by

Thrivent

Financial.

It

is

possible

that

Thrivent

Financial

may

be

unable

to

provide

additional

seed

capital

or

may

decline

to

make

additional

investments

in

the

Fund,

which

could

limit

the

Fund’s

ability

to

invest

in

Church

Loans

and

maintain

liquidity

to

fund

Shareholder

repurchase

requests. 

Regulatory

Changes

and

Regulatory

Actions

Risk

—

Legal,

tax

and

regulatory

changes

could

occur

and

may

adversely

affect

the

Fund

and

its

ability

to

pursue

its

investment

strategies

and/or

increase

the

costs

of

implementing

such

strategies.

Any

adverse

regulatory

action

could

impact

the

prices

of

the

securities

the

Fund

owns.

Related

Restrictions

on

Entering

into

Affiliated

Transactions

Risk

—

The

Fund

is

permitted

to

co-invest

with

Affiliated

Accounts

in

Church

Loan

transactions

subject

to

the

conditions

of

the

Co-Investment

Order,

applicable

regulatory

limitations,

the

allocation

policies

of

the

Adviser

and

its

affiliates,

as

applicable,

and

approval

of

the

Trustees

as

required

in

the

Co-Investment

Order.

Currently,

the

only

Affiliated

Account

is

Thrivent

Financial’s

insurance

general

account.

The

Fund

can

offer

no

assurance,

however,

that

it

will

be

able

to

obtain

such

approvals

or

develop

or

access

opportunities

that

comply

with

such

limitations.

The

Fund’s

co-investment

transactions

may

give

rise

to

conflicts

of

interest

or

perceived

conflicts

of

interest

between

the

Fund

and

Thrivent

Financial. 

Notwithstanding

certain

co-investment

transactions

permitted

under

the

Co-Investment

Order

referenced

above,

entering

into

certain

transactions

that

are

deemed

“joint”

transactions

(for

purposes

of

the

1940

Act

and

relevant

guidance

from

the

SEC)

may

potentially

lead

to

impermissible

joint

transactions

within

the

meaning

of

the

1940

Act

in

the

future.

To

avoid

the

potential

of

future

joint

transactions,

the

Adviser

may

seek

to

avoid

allocating

an

investment

opportunity

to

the

Fund

that

it

would

otherwise

allocate,

subject

to

the

Adviser’s

and

its

affiliates’

then-current

allocation

policies

and

any

applicable

exemptive

orders

(including

the

Co-

Investment

Order),

and

to

the

Adviser’s

obligations

to

allocate

opportunities

in

a

fair

and

equitable

manner.

LIBOR Risk

—

The

Fund

may

be

exposed

to

financial

instruments

that

are

tied

to

LIBOR to

determine

payment

obligations,

financing

terms

or

investment

value.

Such

financial

instruments

may

include

bank

loans,

derivatives,

floating

rate

securities,

certain

asset

backed

securities,

and

other

assets

or

liabilities

tied

to

LIBOR.

In

2017,

the

head

of

the

U.K.

Financial

Conduct

Authority

announced

a

desire

to

phase

out

the

use

of

LIBOR

by

the

end

of

2021.

As

a

result,

market

participants

have

begun

transitioning

away

from

LIBOR,

but

certain

obstacles

remain

with

regard

to

converting

certain

securities

and

transactions

to

a

new

benchmark

or

benchmarks. 

Although

many

LIBOR

rates

were

phased

out

at

the

end

of

2021

as

originally

intended,

a

selection

of

widely

used

USD

LIBOR

rates

will

continue

to

be

published

until

June

2023

in

order

to

assist

with

the

transition.  There

remains

uncertainty

regarding

the

future

utilization

of

LIBOR

and

the

nature

of

any

replacement

rate,

and

any

potential

effects

of

the

transition

away

from

LIBOR

on

the Fund

or

its

investments

are

not

known. 

Any

additional

regulatory

or

market

changes

that

occur

as

a

result

of

the

transition

away

from

LIBOR

and

the adoption

of

alternative

reference

rates

may

have

adverse

impact

on

the

value

of

the Fund's

investments,

performance

or

financial

condition,

and

might

lead

to

increased

volatility

and

illiquidity

in

markets

that

currently

rely

on

LIBOR

to

determine

interest

rates. 

Cybersecurity

Risk

—

Successful

cyber-attacks

against,

or

security

breakdowns

of,

the

Fund

or

any

affiliated

or

third-party

service

provider

may

adversely

affect

the

Fund

or

its

Shareholders.

While

the

Fund

and

its

service

providers

have

established

business

continuity

plans

and

systems

designed

to

prevent

cyber-attacks,

there

are

inherent

limitations

in

such

plans

and

systems

including

the

possibility

that

certain

risks

have

not

been

identified.

Similar

types

of

cybersecurity

risks

also

are

present

for

issuers

of

securities

in

which

the

Fund

invests,

which

could

result

in

material

adverse

consequences

for

such

issuers,

and

may

cause

the

Fund’s

investment

in

such

securities

to

lose

value.

Hedging

and

Derivatives

Risk

—

Derivatives,

a

category

that

includes

options,

futures

and

swaps,

are

financial

instruments

whose

value

derives

from

another

security,

an

index,

an

interest

rate

or

a

currency.

The

Fund

may

use

derivatives,

including

futures

and

swaps,

for

hedging

its

exposure

to

interest

rate

risk.

While

hedging

can

guard

against

potential

risks,

using

derivatives

adds

to

the

Fund’s

expenses

and

can

eliminate

some

opportunities

for

gains.

There

is

also

a

risk

that

a

derivative

intended

as

a

hedge

may

not

perform

as

expected.

Changes

in

the

value

of

the

derivative

may

not

correlate

as

intended

with

the

underlying

interest

rate,

and

the

Fund

could

lose

much

more

than

the

original

amount

invested.

Derivatives

can

be

volatile,

illiquid

and

difficult

to

value.

Derivatives

are

also

subject

to

the

risk

that

the

other

party

in

the

transaction

will

not

fulfill

its

contractual

obligations.

Tax Risk 

—

The

Fund

has

elected

to

be

a

“regulated

investment

company”

under

the

Internal

Revenue

Code

of

1986,

as

amended

(“Code”)

(“RIC”)

and

intends

to

qualify

each

taxable

year

to

be

treated

as

such.

In

order

to

qualify

for

such

treatment,

the

Fund

must

meet

certain

asset

diversification

tests,

derive

at

least

90%

of

its

gross

income

for

its

taxable

year

from

certain

types

of

“qualifying

income,”

and

distribute

to

its

Shareholders

at

least

the

sum

of

90%

of

its

“investment

company

taxable

income,”

as

that

term

is

defined

in

the

Code

(which

include,

among

other

things,

dividends,

interest

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

March

31,

2022

26

and

the

excess

of

any

net

short-term

capital

gains

over

net

long-term

capital

losses,

as

reduced

by

certain

deductible

expenses)

and

90%

of

its

net

exempt

interest

income,

if

any.

The

Fund’s

investment

strategy

will

potentially

be

limited

by

its

intention

to

annually

qualify

for

treatment

as

a

RIC.

An

adverse

determination

or

future

guidance

by

the

IRS

might

affect

the

Fund’s

ability

to

qualify

for

such

treatment

and

result

in

adverse

tax

consequences

for

the

Fund

and

Shareholders.

Thrivent

Church

Loan

and

Income

Fund

Financial

Highlights

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

statement.

28

Per

Share

Outstanding

Throughout

Each

Period

*

Income

from

Investment

Operations

Less

Distributions

From

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income/(Loss)

Net

Realized

and

Unrealized

Gain/(Loss)

on

Investments

(a)

Total

from

Investment

Operations

Net

Investment

Income

Net

Realized

Gain

on

Investments

Church

Loan

and

Income

Fund

Class

S

Shares

Year

Ended

3/31/2022

$

10.61

$

0.27

$

(0.81)

$

(0.54)

$

(0.27)

$

(

0.00

)

Year

Ended

3/31/2021

10.61

0.29

0.05

0.34

(0.27)

(0.07)

Year

Ended

3/31/2020

10.25

0.33

0.39

0.72

(0.35)

(0.01)

Year

Ended

3/31/2019

(d)

10.00

0.14

0.31

0.45

(0.20)

–

(a)

The

amount

shown

may

not

correlate

with

the

change

in

aggregate

gains

and

losses

of

portfolio

securities

due

to

the

timing

of

sales

and

redemptions

of

fund

shares.

(b)

Total

return

assumes

dividend

reinvestment

and

does

not

reflect

any

deduction

for

applicable

sales

charges.  Not

annualized

for

periods

less

than

one

year.

(c)

Portfolio

turnover

rate

may

include

mortgage

dollar

roll

purchase

and

sale

transactions

which

may

increase

portfolio

turnover.  Additional

information

can

be

found

in

the

accompanying

Notes

to

Financial

Statements.  

(d)

Since

fund

inception,

September

28,

2018.

*

**

All

per

share

amounts

have

been

rounded

to

the

nearest

cent.

Computed

on

an

annualized

basis

for

periods

less

than

one

year.

Thrivent

Church

Loan

and

Income

Fund

Financial

Highlights

–

continued

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

statement.

29

Ratios/Supplemental

Data

Ratio

to

Average

Net

Assets

**

Ratios

to

Average

Net

Assets

Before

Expenses

Waived,

Credited

or

Acquired

Fund

Fees

and

Expenses

**

Total

Distributions

Net

Asset

Value,

End

of

Period

Total

Return

(b)

Net

Assets,

End

of

Period

(in

millions)

Expenses

Net

Investment

Income/

(Loss)

Expenses

Net

Investment

Income/

(Loss)

*

Portfolio

Turnover

Rate

(c)

$

(0.27)

$

9.80

(5.22)%

$

37.9

1.00%

2.57%

3.14%

0.42%

343%

(0.34)

10.61

3.21%

37.2

1.00%

2.55%

3.39%

0.16%

294%

(0.36)

10.61

7.11%

27.4

1.32%

2.71%

5.20%

(1.17)%

447%

(0.20)

10.25

4.53%

10.8

1.50%

2.82%

12.57%

(8.25)%

330%

30

Additional

Information

(unaudited)

Proxy

Voting

The

policies

and

procedures

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities

are

attached

to

the

Fund’s

Statement

of

Additional

Information.

You

may

request

a

free

copy

of

the

Statement

of

Additional

Information

by

calling

800-847-

4836

or

access

it

at

thriventintervalfunds.com.

In

addition,

you

may

review

a

report

of

how

the

Fund

voted

proxies

relating

to

portfolio

securities

during

the

most

recent

12-month

period

ended

June

30

at

thriventintervalfunds.com

by

navigating

to

“Proxy

Voting”

in

the

“Resources”

section

or

at

SEC.gov

where

it

is

filed

on

form

N-PX.

Shareholder

Notification

of

Federal

Tax

Information

Pursuant

to

IRC

852(b)(3)

of

the

Internal

Revenue

Code,

Church

Loan

and

Income

Fund

hereby

designates

$7,757

as

long-term

capital

gains

distributed

during

the

year

ended

March

31,

2022,

or

if

subsequently

determined

to

be

different,

the

net

capital

gain

of

such

year.

31

Board

of

Trustees

and

Officers

The

Board

is

responsible

for

the

management

and

supervision

of

the

Fund’s

business

affairs

and

for

exercising

all

powers

except

those

reserved

to

the

shareholders.

The

following

table

provides

information

about

the

Trustees

and

officers

of

the

Fund.

Unless

otherwise

noted,

the

address

for

the

Trustees

and

officers

of

the

Fund

is

901

Marquette

Avenue,

Suite

2500,

Minneapolis,

Minnesota

55402-3211.

The

Fund’s

Statement

of

Additional

Information

includes

additional

information

about

the

Trustees

and

is

available,

without

charge,

by

writing

to

Thrivent

Church

Loan

and

Income

Fund,

901

Marquette

Avenue,

Suite

2500,

Minneapolis,

Minnesota

55402-3211,

calling

800-847-4836,

or

visiting

the

Fund’s

website

(thriventfunds.com/intervalfunds).

Interested

Trustees

(1)

(2)

(3)

Name

(Year

of

Birth)

Year

Elected

Principal

Occupation(s)

and

Directorships

of

Public

Companies

and

Other

Investment

Companies

During

the

Past

Five

Years

David

S.

Royal

(1971)

2018

Executive

Vice

President,

Chief

Investment

Officer,

Thrivent

Financial

since

2017;

President,

Mutual

Funds,

Thrivent

Financial

since

2015;

Vice

President,

Thrivent

Financial

from

2015

to

2017.

Currently,

Director

of

Thrivent

Trust

Company;

Advisory

Board

Member

of

Twin

Bridge

Capital

Partners;

Member

of

Supervisory

Committee

of

Thrivent

Federal

Credit

Union;

Director

of

YMCA

of

the

North;

Director

of

Children's

Cancer

Research

Fund

until

2019

.

Michael

W.

Kremenak

(1978)

2020

Senior

Vice

President

and

Head

of

Mutual

Funds,

Thrivent

Financial

since

2020;

Vice

President,

Thrivent

Financial

from

2015

to

2020.

Director

of

People

Serving

People

from

2014

to

2020.

Independent

Trustees

(2)

(3)

(4)

Name

(Year

of

Birth)

Year

Elected

Principal

Occupation(s)

and

Directorships

of

Public

Companies

and

Other

Investment

Companies

During

the

Past

Five

Years

Julie

K.

Braun

(1958)

2019

Partner

and

Chief

Operating

Officer

of

Castlelake,

LP

from

2005

to

2016;

Audit

Chair,

Pohlad

Holdings,

LLC

since

2019;

Director

of

various

closely-held

investment

partnerships

and

LLCs

of

Castlelake,

LP

from

2005

to

2016.

Pastor

Brian

Fragodt

(1959)

2018

Senior

Pastor,

Trinity

Lutheran

Church,

Long

Lake,

MN

from

2012

to

2020.

Jerry

T.

Golden

(1953)

2018

Retired

Financial

Services

Partner,

Ernst

&

Young;

Audit

Committee

Member,

Pohlad

Holdings,

LLC

since

2020;

Independent

Trustee

of

Scout

Funds

from

2015

to

2017.

Cecilia

H.

Herbert

(1949)

2019

Trustee

of

Stanford

Health

Care

since

2016

and

Finance

Committee

Chair

since

2019;

Trustee

of

WNET,

a

New

York

public

media

company,

since

2011;

Member

of

the

Archdiocese

of

San

Francisco

Finance

Council

from

1994

to

2021;

Member

of

the

State

of

Wyoming

Investment

Funds

Committee

since

2022;

Independent

Director/Trustee

of

iShares

ETF

Funds

since

2005

and

Board

Chair

from

2015

to

2021;

Independent

Trustee

and

Nominating

Committee

Chair

of

Salient

MF

Trust

and

Salient

FF

Trust

from

2015

to

2018.

George

W.

Morriss

(1947)

2018

Adjunct

Professor,

Columbia

University

School

of

International

Policy

and

Affairs

from

2012

to

2018.

Independent

Director/Trustee

of

Neuberger

Berman

Mutual

Funds

since

2007,

Closed

End

Fund

Committee

Chair

since

2018,

and

Vice

Chair,

Contract

Review

Committee

and

Audit

Committee

Chair

from

2010

to

2017;

Independent

Trustee

and

Audit

Committee

Chair,

1WS

Credit

Income

Fund

since

2018;

Independent

Trustee

and

Audit

Committee

Chair

of

Steben

Select

Multi-Strategy

and

Steben

Alternative

Investment

Funds

from

2013

to

2017.

32

Board

of

Trustees

and

Officers

Executive

Officers

(2)

Name

(Year

of

Birth)

Position

Held

With

Trust

Principal

Occupation(s)

During

the

Past

Five

Years

David

S.

Royal

(1971)

Trustee,

President

and

Chief

Investment

Officer

Executive

Vice

President,

Chief

Investment

Officer,

Thrivent

Financial

since

2017;

President,

Mutual

Funds,

Thrivent

Financial

since

2015;

Vice

President,

Thrivent

Financial

from

2015

to

2017.

Michael

W.

Kremenak

(1978)

Trustee,

Senior

Vice

President

Senior

Vice

President

and

Head

of

Mutual

Funds,

Thrivent

Financial

since

2020;

Vice

President,

Thrivent

Financial

from

2015

to

2020.

Gerard

V.

Vaillancourt

(1967)

Treasurer

and

Principal

Accounting

Officer

(6)

Vice

President

and

Mutual

Funds

Chief

Financial

Officer,

Thrivent

Financial

since

2017;

Vice

President,

Mutual

Fund

Accounting,

Thrivent

Financial

from

2006

to

2017.

Edward

S.

Dryden

(1965)

Chief

Compliance

Officer

Vice

President,

Chief

Compliance

Officer

—

Thrivent

Funds,

Thrivent

Financial

since

2018;

Director,

Chief

Compliance

Officer

—

Thrivent

Funds,

Thrivent

Financial

from

2010

to

2018.

John

D.

Jackson

(1977)

Secretary

and

Chief

Legal

Officer

Senior

Counsel,

Thrivent

Financial

since

2017;

Associate

General

Counsel,

RBC

Global

Asset

Management

(US)

Inc.

from

2011

to

2017.

Kathleen

M.

Koelling

(1977)

Privacy

Officer

(5)

Vice

President,

Deputy

General

Counsel,

Thrivent

Financial

since

2018;

Privacy

Officer,

Thrivent

Financial

since

2011;

Anti-Money

Laundering

Officer,

Thrivent

Financial

from

2011

to

2019;

Vice

President,

Managing

Counsel,

Thrivent

Financial

from

2016

to

2018.

Troy

A.

Beaver

(1967)

Vice

President

Vice

President,

Mutual

Funds

Marketing

&

Distribution,

Thrivent

Financial

since

2015.

Monica

L

Kleve

(1969)

Vice

President

Vice

President,

Investment

Operations,

Thrivent

Financial

since

2019;

Director,

Investments

Systems

and

Solutions,

Thrivent

Financial

from

2002

to

2019.

Kathryn

A.

Stelter

(1962)

Vice

President

(6)

Vice

President,

Operations

Development,

Thrivent

Financial

since

2021;

Vice

President,

Mutual

Funds

Chief

Operations

Officer,

Thrivent

Financial

since

2017;

Director,

Mutual

Fund

Operations,

Thrivent

Financial

from

2014

to

2017.

Jill

M.

Forte

(1974)

Assistant

Secretary

Senior

Counsel,

Thrivent

Financial

since

2017;

Counsel,

Thrivent

Financial

from

2015

to

2017.  

Sarah

L.

Bergstrom

(1977)

Assistant

Treasurer

(6)

Head

of

Mutual

Fund

Accounting,

Thrivent

Financial

since

2017;

Director,

Fund

Accounting

Administration,

Thrivent

Financial

from

2007

to

2017.

(1)

“Interested

person”

of

the

Fund

as

defined

in

the

1940

Act

by

virtue

of

a

position

with

Thrivent

Financial.

Mr.

Royal

and

Mr.

Kremenak

are

considered

interested

persons

because

of

their

principal

occupations

with

Thrivent

Financial.

(2)

Each

Trustee

generally

serves

an

indefinite

term

until

her

or

his

successor

is

duly

elected

and

qualified.

Officers

generally

serve

at

the

discretion

of

the

Board

until

their

successors

are

duly

appointed

and

qualified.

(3)

The

Fund

is

part

of

a

“Fund

Complex,”

which

is

comprised

of

the

Fund,

Thrivent

Mutual

Funds,

Thrivent

Series

Fund,

Inc.,

Thrivent

Cash

Management

Trust,

and

Thrivent

Core

Funds.

Each

Trustee,

other

than

Mr.

Royal

and

Mr.

Kremenak,

oversees

1

portfolio

in

the

Fund

Complex.

Mr.

Royal

and

Mr.

Kremenak

oversee

65

portfolios.

(4)

The

Trustees,

other

than

Mr.

Royal

and

Mr.

Kremenak,

are

not

“interested

persons”

(as

defined

under

the

1940

Act)

of

the

Fund

and

are

referred

to

as

“Independent

Trustees".

(5)

The

address

for

this

Officer

is

4321

North

Ballard

Road,

Appleton,

WI

54913.

(6)

Mr.

Vaillancourt

and

Ms.

Stelter

resigned

from

their

positions

as

officers

of

the

Fund

effective

April

20,

2022.

The

Board

appointed

the

following

officers

effective

April

20,

2022:

•

Sarah

L.

Bergstrom

will

serve

as

Treasurer

and

Principal

Accounting

Officer,

replacing

Mr.

Vaillancourt.

Ms.

Bergstrom

served

as

Assistant

Treasurer

from

2018

to

2022.

•

Richard

L.

Ramczyk

will

serve

as

Assistant

Treasurer,

replacing

Ms.

Bergstrom.

Mr.

Ramczyk

has

served

as

Manager,

Mutual

Fund

Accounting

Operations

at

Thrivent

since

2011.

•

Andrew

R.

Kellogg

will

serve

as

Vice

President,

replacing

Ms.

Stelter.

Mr.

Kellogg

has

served

as

the

Director

of

Strategic

Partnerships

at

Thrivent

Financial

since

2021.

Prior

to

that,

he

was

Director,

Client

Relations

at

SS&C/DST

Systems,

Inc.

from

2016

to

2021.

PRSRT

STD

US

POSTAGE

PAID

Thrivent

Financial

4321

N.

Ballard

Rd.

Appleton,

WI

54919-0001

34788AR

R5-22

The

distributor

for

Thrivent

Church

Loan

and

Income

Fund

is

Thrivent

Distributors,

LLC,

a

registered

broker-dealer,

member

FINRA

/

SIPC

,

and

subsidiary

of

Thrivent,

the

marketing

name

for

Thrivent

Financial

for

Lutherans.

A

better

way

to

deliver

documents

Thrivent

Church

Loan

and

Income

Fund

annual

and

semi-annual

shareholder

reports

are

made

available

on

thriventfunds.com/intervalfunds,

and

we

will

notify

you

by

mail

each

time

a

report

is

posted.

You

may

also

manage

your

delivery

preferences

and

sign

up

for

email

notifications

of

reports

by

enrolling

at

thrivent.

com/gopaperless.

If

you

purchased

shares

through

Thrivent:

If

you

wish

to

receive

paper

copies

of

a

shareholder

report

for

Thrivent

Church

Loan

and

Income

Fund

in

the

future,

you

may

write

to

us

at

4321

North

Ballard

Road,

Appleton,

WI,

54919-0001.

We

will

begin

to

send

paper

copies

of

shareholder

reports

within

30

days

of

when

we

receive

your

request.

Reports

are

also

available

by

visiting

thriventfunds.com/intervalfunds.

If

you

purchased

shares

from

a

firm

other

than

Thrivent:

For

paperless

delivery

or

to

receive

paper

copies

of

a

shareholder

report

for

Thrivent

Church

Loan

and

Income

Fund

in

the

future,

contact

your

financial

professional.

Reports

are

also

available

by

visiting

thriventfunds.com/intervalfunds.

EX-99.CODE ETH

CODE OF ETHICS

(Sarbanes-Oxley Act of 2002, Section 406)

for

PRINCIPAL EXECUTIVE OFFICER

PRINCIPAL FINANCIAL OFFICER

AND

PRINCIPAL ACCOUNTING OFFICER

OF

THRIVENT MUTUAL FUNDS

THRIVENT CASH MANAGEMENT TRUST

THRIVENT SERIES FUND, INC.

THRIVENT CORE FUNDS

AND

THRIVENT CHURCH LOAN AND INCOME FUND

November 14, 2018

I.          CODE OF ETHICS

It is the policy of the Thrivent Mutual Funds, Thrivent Cash Management Trust, Thrivent Series Fund, Inc., Thrivent Core Funds and Thrivent Church Loan and Income Fund (collectively, the "Funds") that the President, as chief executive officer, and the Treasurer, as chief financial officer and chief accounting officer (or persons performing similar functions), of each Fund adhere to and advocate the following principles governing their professional and ethical conduct in the fulfillment of their responsibilities:

A.

Act with honesty and integrity, and ethically handle actual or apparent conflicts between his or her personal, private interests and the interests of the Funds, including receiving improper personal benefits as a result of his or her position.

B.

Take such actions as are necessary as to ensure that periodic reports filed with the Securities and Exchange Commission and other public communications contain information which provides full, fair, accurate, timely and understandable disclosure.  Such actions shall include adoption and maintenance of adequate disclosure controls and procedures.

C.

Comply with laws of federal, state, and local governments applicable to the Funds, and the rules and regulations of private and public regulatory agencies having jurisdiction over the Funds.

D.

Act in good faith, responsibly, with due care and diligence, without misrepresenting or omitting material facts or allowing independent judgment to be compromised.

E.

Respect the confidentiality of information acquired in the course of the performance of his or her responsibilities except when authorized or otherwise legally obligated to disclose such information.  Do not use confidential information acquired in the course of the performance of his or her responsibilities for personal advantage.

F.

Proactively promote ethical behavior among subordinates and peers.

G.

Use Fund assets and resources employed or entrusted in a responsible manner.

H.

Do not use Fund information, assets, opportunities or one's position with the Funds for personal gain.  Do not compete directly or indirectly with the Funds.

I.

Promptly report any violation of this Code to the Chief Compliance Officer.

J.

Comply in all respects with (a) the Funds' Code of Ethics; (b) Thrivent Financial for Lutheran's Code of Conduct, and (c) Thrivent Financial for Lutherans’ and Thrivent Asset Management, LLC’s Policy on Insider Trading.

K.

Acknowledge and certify compliance with the foregoing annually and file a copy of such certification with the Audit Committee of each Fund's Board of Directors/Trustees (“Fund Board”).

II.        ADMINISTRATION OF CODE

A.        Chief Compliance Officer.

The Independent Directors of each Fund Board shall appoint a Chief Compliance Officer, who shall have overall responsibility for ensuring this Code is adhered to.  In such capacity, the Chief Compliance Officer shall report to each Fund Board's Audit Committee.  The Chief Compliance Officer shall be a person who has sufficient status within Thrivent Financial for Lutherans to engender respect for the Code and the authority adequately to deal with the persons subject to the Code regardless of their stature in the company.

B.        Amendments

Any material amendment to this Code shall be disclosed in accordance with the requirements of Rule 30b2-1(a) under the Investment Company Act of 1940, as amended (the "1940 Act"), and form N-CSR.  Form N-CSR does not require disclosure of technical, administrative or other non-substantive amendments.

C.        Waivers

A waiver of a provision of this Code must be requested whenever there is a reasonable likelihood that a contemplated action will violate the Code.  Requests for waivers must be in writing and submitted to the Chief Compliance Officer, who shall make a recommendation to the Audit Committee for final determination.  Any waiver or implicit waiver shall be disclosed in accordance with the requirements of Rule 30b2-1(a) under the 1940 Act and Form N-CSR.

As used herein, "waiver" means any approval by the Audit Committee of a material departure from a provision of this Code.  "Implicit waiver" means failure by the Chief Compliance Officer or the Audit Committee to take action within a reasonable period of time regarding a material departure from a provision of the Code that has been made known to an executive officer (as defined by Rule 3b-7 under the Securities Exchange Act of 1934, as amended) of the Funds.

D.        Violations

Upon learning of a violation or potential violation of this Code, the Chief Compliance Officer shall prepare a written report to Audit Committee providing full details and recommendations for further action.

The Audit Committee will, in consultation with the Chief Compliance Officer and/or such legal counsel as the Audit Committee deems appropriate, make the final determination of whether a violation has occurred and the action, if any, to be taken in response thereto.  The Audit Committee may take into account the qualitative and quantitative materiality of the violation from the perspective of either the determent to the Fund or the benefit to the violating officer, the policy behind the provision violated and such other facts and circumstances as it deems advisable under all of the facts and circumstances.

Any material violation shall be reported in accordance with the requirements of Rule 30b2-1 of the 1940 Act and Form N-CSR.

E.         Regulatory Filing

A copy of this Code of Ethics shall be filed as an exhibit to each Fund's annual report on Form N-CSR.

F.         Records

The Chief Compliance Officer or Chief Legal Officer shall retain copies of all records required by Form N-CSR and/or rules and regulations promulgated under the 1940 Act.

EX-99.CERT

Certification

I, David S. Royal, certify that:

1.   I have reviewed this report on Form N-CSR of Thrivent Church Loan and Income Fund;

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.   The registrant’s other certifying officer(s) and I have disclosed to registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 27, 2022                                          

                                                                                    /s/ David S. Royal                                             

David S. Royal

Trustee and President

(principal executive officer)

Certification

I, Sarah L. Bergstrom, certify that:

1.   I have reviewed this report on Form N-CSR of Thrivent Church Loan and Income Fund;

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.   The registrant’s other certifying officer(s) and I have disclosed to registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 27, 2022                  

                                                                                    /s/ Sarah L. Bergstrom                                  

Sarah L. Bergstrom

Treasurer and Principal Accounting Officer

(principal financial officer)

EX-99.906 CERT

Certification Under Section 906 of Sarbanes-Oxley Act of 2002

Name of Registrant: Thrivent Church Loan and Income Fund

In connection with the Report on Form N-CSR for the above-named issuer, the undersigned hereby certify, to the best of their knowledge, that:

1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer.

Date: May 27, 2022                                          

                                                                                    /s/ David S. Royal                                             

David S. Royal

Trustee and President

(principal executive officer)

Date: May 27, 2022                                                      

                                                                                    /s/ Sarah L. Bergstrom                                       

Sarah L. Bergstrom

Treasurer and Principal Accounting Officer

(principal financial officer)

EX-99.PROXYPOLICY

Thrivent Financial For Lutherans and

Thrivent Asset Management, LLC

Proxy Voting Policies and Procedures Summary

Responsibility to Vote Proxies

Overview

. Thrivent Financial for Lutherans and Thrivent Asset Management, LLC

(

collectively, in their capacity as investment advisers, “Thrivent”

)

have adopted Proxy Voting Policies and Procedures (“Policies and Procedures”) for the purpose of establishing formal policies and procedures for performing and documenting Thrivent’s fiduciary duty with regard to the voting of client proxies, including investment companies which it sponsors and for which it serves as investment adviser

(“

Thrivent Funds

”

)

and by institutional accounts who have requested that Thrivent be involved in the proxy process.

Fiduciary Considerations

. It is the policy of Thrivent that decisions with respect to proxy issues will be made primarily in light of the anticipated impact of the issue on the desirability of investing in the portfolio company from the viewpoint of the particular client.

Thrivent seeks to vote proxies solely in the interests of the client, including Thrivent Funds. Thrivent votes proxies, where possible to do so, in a manner consistent with its fiduciary obligations and responsibilities. Logistics involved may make it impossible at times, and at other times disadvantageous, to vote proxies in every instance.

Administration of Policies and Procedures

Thrivent has formed a committee that is responsible for establishing positions with respect to corporate governance and other proxy issues, as well as overseeing the environmental, social and governance (“ESG”) analysis components of Thrivent’s investment processes (“Committee”). Annually, the Committee reviews the Policies and Procedures, including in relation to recommended changes reflected in applicable benchmark policies and voting guidelines of Institutional Shareholder Services Inc. (“ISS”). As discussed below, Thrivent may, with the approval of the Committee, vote proxies other than in accordance with the applicable voting guidelines in the Policies and Procedures.

How Proxies are Reviewed, Processed and Voted

In order to facilitate the proxy voting process, Thrivent has retained ISS as an expert in the proxy voting and corporate governance areas. ISS specializes in providing a variety of fiduciary-level proxy advisory and voting services. These services include custom vote recommendations, research, vote execution, reporting, auditing and consulting assistance for the handling of proxy voting responsibilities. ISS analyzes each proxy vote of Thrivent’s clients and prepares a recommendation that reflects ISS’s application of the Policies and Procedures. Thrivent will, in most cases, vote proxies following the applicable market-specific ISS Sustainability Proxy Voting Guidelines (“Sustainability Guidelines”). In other cases, Thrivent will vote proxies following the applicable market-specific ISS Proxy Voting Guidelines (“ISS Guidelines”) or using ISS’s research and recommendations and a determination by investment management or other Thrivent personnel as the circumstances warrant, which may include items not addressed by the voting guidelines. The Sustainability Guidelines have been developed consistent with the dual objectives of socially responsible shareholders – financial and social. The Sustainability Guidelines seek to reflect a broad consensus of the socially responsible investing community on matters of social and environmental import and are based on a commitment to create and preserve economic value and to advance principles of good corporate governance consistent with responsibilities to society as a whole on matters of corporate governance, executive compensation, and corporate structure. With regard to voting proxies for the Thrivent ESG Index Portfolio, Thrivent votes proxies in accordance with the Sustainability Guidelines.

Certain of Thrivent’s clients’ accounts are accounts or funds (or a portion thereof) that employ a quantitative strategy that relies on factor-based models rather than primarily on fundamental security research and analyst coverage that an actively managed portfolio using fundamental research would typically employ; often, these accounts hold of a high number of positions.

Accordingly, in light of the considerable time and effort that would be required to review ISS research and recommendations, absent client direction, for securities held only in accounts or funds that only employ a quantitative strategy (and are not held in other Thrivent client accounts, or in the same account but in the portion managed using fundamental research and analyst coverage), for certain categories of management and shareholder proposals, Thrivent may use a different process than is used for other accounts to review and determine a voting outcome

. For these proposals, Thrivent may review ISS Guidelines and Sustainability Guidelines and (i) where such Guidelines recommend voting in the same manner, determine, consistent with the best interest of its clients, to provide standing instructions to vote proxies in accordance with the recommendations of ISS; or (ii) where such Guidelines differ, vote as determined by Thrivent personnel other than the affected account’s investment management team.

The ISS Guidelines and Sustainability Guidelines can be found at: https://www.issgovernance.com/policy-gateway/voting-policies/.

Proxy Voting Process Overview

Thrivent utilizes ISS’s voting agent services to notify us of upcoming shareholder meetings for portfolio companies held in client accounts and to transmit votes on behalf of our clients. ISS provides comprehensive summaries of proxy proposals, publications discussing key proxy voting issues, and specific vote recommendations regarding Thrivent’s clients’ portfolio company proxies to assist in the proxy voting process. The final authority and responsibility for proxy voting decisions remains with Thrivent. Decisions with respect to proxy matters are made primarily in light of the anticipated impact of the issue on the desirability of investing in the company from the viewpoint of our respective clients.

Thrivent may on any particular proxy vote determine that it is in the best interests of its clients to diverge from the Policies and Procedures’ applicable voting guidelines, including diverging from ISS’s recommendations with respect to Thrivent’s clients’ accounts that are accounts or funds (or a portion thereof) that employ a quantitative strategy. In such cases, the person requesting to diverge from the Policies and Procedures’ applicable voting guidelines is required to document in writing the rationale for their vote and submit all written documentation to the Committee for review and approval. In determining whether to approve any particular request, the Committee will determine that the request is not influenced by any conflict of interest and is in the best interests of Thrivent’s clients.

Summary of Thrivent’s Voting Policies

Specific voting guidelines have been adopted by the Committee for regularly occurring categories of management and shareholder proposals. The detailed voting guidelines are available to Thrivent’s clients upon request. The following is a summary of significant Thrivent policies, which are generally consistent with the Sustainability Guidelines or ISS Guidelines referenced above:

Board Structure and Composition Issues.

Thrivent believes boards are expected to have a majority of directors independent of management. The independent directors are expected to organize much of the board’s work, even if the chief executive officer also serves as chairperson of the board. Key committees (audit, compensation, and nominating/corporate governance) of the board are expected to be entirely independent of management. It is expected that boards will engage in critical self-evaluation of themselves and of individual members. Boards should be sufficiently diverse to ensure consideration of a wide range of perspectives. Individual directors, in turn, are expected to devote significant amounts of time to their duties and to limit the number of directorships they accept. As such, Thrivent withholds votes for directors who miss more than one-fourth of the scheduled board meetings. Thrivent votes against management efforts to stagger board member terms because a staggered board may act as a deterrent to takeover proposals. For the same reasons, Thrivent votes for proposals that seek to fix the size of the board.

Board Accountability.

Thrivent believes boards should be sufficiently accountable to shareholders, including through transparency of the company's governance practices and regular board elections, by the provision of sufficient information for shareholders to be able to assess directors and board composition, and through the ability of shareholders to remove directors. Boards should be held responsible for risk oversight or fiduciary responsibility failures. Examples of risk oversight failures include but are not limited to: bribery; large or serial fines or sanctions from regulatory bodies; demonstrably poor risk oversight of environmental and social issues; or significant adverse legal judgements or settlement. Thrivent will withhold votes from appropriate directors if the company’s governing documents impose undue restrictions on shareholder’s ability to amend bylaws, non-audit fees paid to the auditor are excessive, the company maintains significant problematic pay practices, or the company is a significant greenhouse gas emitter and is not taking the minimum steps needed to understand, assess, and mitigate risks related to climate change via detailed disclosure of climate-related risks and appropriate greenhouse gas emissions reduction targets.

Executive and Director Compensation.

These proposals necessitate a case-by-case evaluation. Generally, Thrivent opposes compensation packages that provide what we view as excessive awards to a few senior executives or that contain excessively dilutive stock option grants based on a number of criteria such as the costs associated with the plan, plan features, and dilution to shareholders.

Ratification of Auditors.

Thrivent votes for proposals to ratify auditors, unless an auditor has a financial interest in or association with the company, and is therefore not independent; there is reason to believe that the independent auditor has rendered an opinion that is neither accurate nor indicative of the company’s financial position; non-audit fees paid represent 50 percent or more of the total fees paid to the auditor; or poor accounting practices are identified that rise to a serious level of concern.

Mergers and Acquisitions.

Thrivent votes on mergers and acquisitions on a case-by-case basis, taking into account and balancing the following: anticipated financial and operating benefits, including the opinion of the financial advisor, market reaction, offer price (cost vs. premium) and prospects of the combined companies; how the deal was negotiated; potential conflicts of interest between management’s interests and shareholders’ interests; and changes in corporate governance and their impact on shareholder rights.

Anti-takeover and Corporate Governance Issues

Thrivent generally opposes anti-takeover measures since they adversely impact shareholder rights. When voting on capital structure issues, Thrivent considers the dilutive impact to shareholders and the effect on shareholder rights.

Social, Environmental and Corporate Responsibility Issues.

Thrivent generally supports proposals that seek standardized reporting, or that request information regarding a company's adoption of, adherence to, relevant norms, standards, codes of conduct, or universally recognized international initiatives to promote disclosure and transparency with regard to environmental, social and corporate responsibility issues. These issues may include business activity impacts on the environment and climate, human and labor rights, health and safety, diversity, equity and inclusion, as well as general impacts on communities. When voting on matters with apparent economic or operational impacts on the company, Thrivent realizes that the precise economic effect of such proposals is often unclear. Where this is the case, Thrivent typically

utilizes a case-by-case approach.

Shareblocking.

Shareblocking is the practice in certain foreign countries of “freezing” shares for trading purposes in order to vote proxies relating to those shares. Thrivent generally refrains from voting shares in shareblocking countries unless the matter has compelling economic consequences that outweigh the loss of liquidity in the blocked shares.

Applying Proxy Voting Policies to non-U.S. Companies.

Thrivent applies a two-tier approach to determining and applying global proxy voting policies. The first tier establishes baseline policy guidelines for the most fundamental issues, which apply without regard to a company's domicile. The second tier takes into account various idiosyncrasies of different countries, making allowances for standard market practices, as long as they do not violate the fundamental goals of good corporate governance. The goal is to enhance shareholder value through effective use of the shareholder franchise, recognizing that applying policies developed for U.S. corporate governance may not appropriate for all markets.

Monitoring and Resolving Conflicts of Interest – Thrivent/clients

The Committee is responsible for monitoring and resolving possible material conflicts between the interests of Thrivent and those of its clients with respect to proxy voting. Examples of situations where conflicts of interest can arise are when i) the issuer is a vendor whose products or services are material to Thrivent’s business; ii) the issuer is an entity participating to a material extent in the distribution of proprietary investment products advised, administered or sponsored by Thrivent; iii) an Access Person

[1]

of Thrivent also serves as a director or officer of the issuer; and iv) there is a personal conflict of interest (e.g.,

familial relationship with company management)

. Other circumstances or relationships can also give rise to potential conflicts of interest.

All material conflicts of interest will be resolved in the interests of the clients. Application of the Policies and Procedures’ applicable voting guidelines to vote client proxies is generally relied on to address possible conflicts of interest since the voting guidelines are pre-determined by the Committee. Where there is discretion in the voting guidelines, voting as recommended under an ISS policy may be relied on to address potential conflicts of interest.

In cases where Thrivent is considering overriding these Policies and Procedures’ applicable voting guidelines, or in the event there is discretion in determining how to vote (for example, where or the guidelines provide for a case by case internal review) matters presented for vote are not governed by such guidelines, the Committee will follow these or other similar procedures:

·

Compliance will conduct a review to seek to identify potential material conflicts of interest. If no material conflict of interest is identified, the proxy will be voted as determined by the Committee or the appropriate Thrivent personnel under these policies and procedures. The Compliance review process for identifying potential conflicts of interest will be reviewed by the Committee and may include a review of factors indicative of a potential conflict of interest or a determination that voting in accordance with ISS's recommendation(s) can reasonably be relied on to address potential conflicts of interest.

·

If a material conflict of interest is identified, the Committee will be apprised of that fact and the Committee will evaluate the proposed vote in order to ensure that the proxy ultimately is voted in what Thrivent believes to be the best interests of clients, and without regard for the conflict of interest. The Committee will document its vote determination, including the nature of the material conflict, the Committee’s analysis of the matters submitted for proxy vote, and the reasons why the Committee determined that the votes were cast in the best interests of clients.

Certain Thrivent Funds ("top tier fund") may own shares of other Thrivent Funds (''underlying fund"). If an underlying fund submits a matter to a shareholder vote, the top tier fund will generally vote its shares in the same proportion as the other shareholders of the underlying fund. If there are no other shareholders in the underlying fund, the top tier fund will vote in what Thrivent believes to be in the top tier fund's best interest.

Securities Lending

Thrivent will generally not vote nor seek to recall in order to vote shares on loan, unless it determines that a vote would have a material effect on an investment in such loaned security.

Oversight, Reporting and Record Retention

Retention of Proxy Service Provider and Oversight of Voting

In overseeing proxy voting generally and determining whether or not to retain the services of ISS, Thrivent performs the following functions, among others, to determine that Thrivent continues to vote proxies in the best interest of its clients: i) periodic sampling of proxy votes; ii) periodic reviews of Thrivent’s Policies and Procedures to determine they are adequate and have been implemented effectively, including whether they continue to be reasonably designed to ensure that proxies are voted in the best interest of Thrivent’s clients; iii) periodic due diligence on ISS designed to monitor ISS’s a) capacity and competency to adequately analyze proxy issues, including the adequacy and quality of its staffing and personnel, as well as b) its methodologies for developing vote recommendations and ensuring that its research is accurate and complete; and iv) periodic reviews of ISS’s procedures regarding their capabilities to identify and address conflicts of interest.

Proxy statements and solicitation materials of issuers (other than those which are available on the SEC’s EDGAR database) are kept by ISS in its capacity as voting agent and are available upon request. Thrivent retains documentation on shares voted differently than the Thrivent Policies and Procedures voting guidelines, and any document which is material to a proxy voting decision such as the Thrivent Policies and Procedures voting guidelines and the Committee meeting materials.

ISS provides Vote Summary Reports for each Thrivent Fund. The report specifies the company, ticker, cusip, meeting dates, proxy proposals, and votes which have been cast for the Thrivent Fund during the period, the position taken with respect to each issue and whether the Thrivent Fund voted with or against company management.

[1]

"Access Person" has the meaning provided under the current Thrivent Code of Ethics.