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: September 30, 2022

Item 1. Report to Stockholders

[Insert shareholder report]

Item 2. Code of Ethics

Not applicable to semiannual report.

Item 3. Audit Committee Financial Expert

Not applicable to semiannual report.

Item 4. Principal Accountant Fees and Services

Not applicable to semiannual report.

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

Not applicable to semiannual report.

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

(a)        Not applicable to semiannual report.

(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 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: Not applicable to this filing.

(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: November 25, 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: November 25, 2022                                              By:   /s/ David S. Royal                                     

                                                                                               David S. Royal

                                                                                            Trustee and President

                                                                                            (principal executive officer)

Date: November 25, 2022                                              By:   /s/ Sarah L. Bergstrom                              

                                                                                               Sarah L. Bergstrom

                                                                                            Treasurer and Principal Accounting

                                                                                            Officer

                                                                                            (principal financial officer)

Thrivent

Church

Loan

and

Income

Fund

Semiannual

Report

Interval

Funds

September

30,

2022

Table

of

Contents

Letter

from

the

President

2

Portfolio

Perspective

3

Shareholder

Expense

Example

4

Schedule

of

Investments

5

Statement

of

Assets

and

Liabilities

10

Statement

of

Operations

11

Statements

of

Changes

in

Net

Assets

12

Statement

of

Cash

Flows

13

Notes

to

Financial

Statements

14

Financial

Highlights

23

Additional

Information

25

2

Dear

Shareholder:

2

In

an

era

of

rising

inflation,

a

slowing

economy,

and

a

volatile

investment

market,

many

Americans

are

turning

to

the

church

to

help

overcome

the

challenges

they

face

in

these

difficult

times.

Thrivent

Church

Loan

and

Income

Fund

has

continued

to

help

churches

across

the

country

as

they

serve

their

communities

by

delivering

the

Gospel

message,

distributing

food,

clothing,

and

counseling

services

to

those

in

need.

Since

its

inception

in

September

2018,

the

Fund

has

extended

loans

affecting

115

churches,

including

many

multi-site

church

communities.

Each

year,

we

have

continued

to

build

on

that

success

by

extending

loans

to

a

growing

list

of

churches

—

across

the

country

and

across

denominations

—

that

can

benefit

from

a

mortgage

loan

relationship

through

the

Fund.

Today

there

are

loans

held

in

27

different

states

with

11

different

church

denominations.

In

the

last

12

months,

church

loans

made

by

the

Fund

have

impacted

churches

serving

more

than

15,000

worshippers.

Those

churches

saved

an

average

of

1.52%

on

the

mortgages

that

were

refinanced,

allowing

for

ministry

expansion,

construction

of

new

facilities,

and

other

important

projects.

The

Fund

currently

has

80

loans

outstanding.

Here

are

a

few

churches

that

have

benefited

their

communities

over

the

past

year,

thanks,

in

part,

to

loans

from

the

Fund:

An

Assemblies

of

God

church

in

Florida

took

advantage

of

significant

interest

expense

savings

by

refinancing

its

current

debt

with

a

Thrivent

product

that

offered

a

lower

rate

and

shorter

loan

term,

while

keeping

the

payment

the

same.

The

church

is

excited

to

redistribute

this

interest

savings

to

ministries

it

supports,

such

as

its

food

distribution

center,

small

group

ministry,

and

local

Christian

schools.

A

non-denominational

church

in

Indiana

refinanced

a

loan

originally

obtained

to

purchase

its

current

property.

The

long-term

fixed-rate

product

allowed

the

church

to

decrease

its

interest

rate

by

almost

2%,

resulting

in

savings

that

it

plans

to

direct

toward

local

projects

and

global

missions

in

Jamaica

and

Nicaragua.

A

Presbyterian

church

in

California

converted

its

construction

loan

into

a

20-year

fixed-rate

loan

product

that

will

help

mitigate

its

interest

rate

risk—bringing

peace

of

mind

to

its

members

and

allowing

the

church

to

continue

focusing

on

the

things

that

matter

most:

serving

its

community

by

providing

meals

to

neighbors

in

need,

volunteering

at

a

homeless

shelter,

and

supporting

missionary

families

around

the

world.

In

addition

to

helping

dozens

of

churches

meet

their

financial

needs

and

serve

their

communities,

we

take

great

pride

that

the

Fund

has

also

provided

a

competitive

yield

for

shareholders

of

about

4%

in

the

current

rising

interest

rate

environment.

(The

Fund’s

30-day

SEC

yield

averaged

3.73%

for

the

third

quarter

and

3.23%

for

the

12-month

period

from

October

2021

through

September

2022.

The

30-day

SEC

yield

was

4.05%

and

2.02%

before

fee

waivers,

for

the

period

ending

September

30,

2022.)*

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

September

30,

2022,

average

annualized

returns

for

Thrivent

Church

Loan

and

Income

Fund

were

-14.21%

for

the

1-year

period,

-3.07%

for

the

3-year

period,

and

0.13%

since

the

Fund’s

inception

(September

28,

2018).

All

data

represents

past

performance

and

assumes

the

rein-

vestment

of

dividends

and

capital

gains.

Past

performance

does

not

guarantee

future

results.

The

investment

return

and

principal

value

of

the

investment

will

fluctuate

so

that

an

investor’s

shares,

when

redeemed,

may

be

worth

more

or

less

than

the

original

cost.

Current

performance

may

be

lower

or

higher

than

the

performance

data

quoted.

Visit

thriventintervalfunds.com

or

call

800-847-4836

for

perfor-

mance

results

current

to

the

most

recent

month-end. 

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

they

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. 

3

Thrivent

Church

Loan

and

Income

Fund

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.

Portfolio

Composition

(%

of

Portfolio)

Church

Loans

64.3%

Short-Term

Investments

18.4%

Long-Term

Fixed

Income

17.3%

Total

100.0%

Quoted

Portfolio

Composition

is

subject

to

change.

4

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

April

1,

2022

through

September

30,

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

4/1/2022

Ending

Account

Value

9/30/2022

Expenses

Paid

during

Period

4/1/2022

-

9/30/2022

*

Annualized

Expense

Ratio

Thrivent

Church

Loan

and

Income

Fund

Actual

Class

S

$1,000

$918

$4.81

1.00%

Hypothetical

**

Class

S

$1,000

$1,020

$5.06

1.00%

*

Expenses

are

equal

to

the

Fund's

annualized

expense

ratio,

multiplied

by

the

average

account

value

over

the

period,

multiplied

by

183/365

to

reflect

the

one-half

year

period.

**

Assuming

5%

annualized

total

return

before

expenses.

Thrivent

Church

Loan

and

Income

Fund

Schedule

of

Investments

as

of

September

30,

2022

(unaudited)

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

schedule.

5

Principal

Amount

Church

Loans

(

78.4%

)

a

Value

Alabama

(0.8%)

Church

Loan

#

200030770

$

366,269

4.000%,

12/1/2039

b

$

303,884

Total

303,884

Arizona

(1.7%)

Church

Loan

#

200030450

249,502

3.875%,

3/15/2032

b

214,311

Church

Loan

#

200030680

469,045

3.950%,

11/1/2034

b

405,990

Total

620,301

Arkansas

(2.7%)

Church

Loan

#

200031540

584,337

3.200%,

12/15/2029

b

536,966

Church

Loan

#

200031780

556,611

3.650%,

6/1/2041

b

450,779

Total

987,745

California

(17.8%)

Church

Loan

#

200030700

528,240

3.750%,

6/15/2045

b

405,823

Church

Loan

#

200030850

368,184

4.550%,

11/15/2033

b

352,494

Church

Loan

#

200031050

436,920

4.650%,

11/15/2038

b

421,902

Church

Loan

#

200031180

751,511

3.450%,

1/1/2044

b

636,865

Church

Loan

#

200031270

521,620

4.400%,

5/15/2045

b

390,655

Church

Loan

#

200031710

906,557

3.600%,

2/1/2041

b

727,567

Church

Loan

#

200031790

749,241

3.600%,

3/15/2037

b

624,486

Church

Loan

#

200031920

429,604

3.375%,

10/15/2036

b

346,187

Church

Loan

#

200032090

647,935

3.700%,

1/1/2042

b

494,084

Church

Loan

#

200032200

779,383

4.550%,

5/1/2042

b

693,785

Church

Loan

#

200032290

782,131

4.300%,

6/15/2037

b

726,052

Church

Loan

#

200032301

606,986

5.050%,

8/1/2047

b

559,247

Total

6,379,147

Colorado

(2.2%)

Church

Loan

#

200031580

455,648

4.350%,

7/15/2039

b

412,192

Church

Loan

#

200031750

469,930

2.850%,

1/15/2036

b

402,594

Total

814,786

Florida

(3.2%)

Church

Loan

#

200031470

384,504

4.950%,

7/15/2039

b

331,556

Church

Loan

#

200031670

257,081

3.700%,

1/15/2036

b

210,426

Principal

Amount

Church

Loans

(78.4%)

a

Value

Florida

(3.2%)

-

continued

Church

Loan

#

200031960

$

748,565

3.800%,

11/15/2036

b

$

601,845

Total

1,143,827

Illinois

(6.2%)

Church

Loan

#

200031070

588,589

4.500%,

11/15/2043

b

561,936

Church

Loan

#

200031210

546,402

3.950%,

2/15/2040

b

437,235

Church

Loan

#

200031211

149,653

3.200%,

2/15/2035

b

141,511

Church

Loan

#

200031900

385,385

3.950%,

9/15/2041

b

288,956

Church

Loan

#

200032350

828,000

4.850%,

9/1/2037

b,c

772,101

Total

2,201,739

Indiana

(2.1%)

Church

Loan

#

200031420

605,567

3.500%,

5/15/2040

b

479,118

Church

Loan

#

200031950

375,763

3.950%,

11/1/2036

b

302,569

Total

781,687

Kansas

(0.5%)

Church

Loan

#

200031590

194,239

3.800%,

8/15/2045

b

176,182

Total

176,182

Kentucky

(0.7%)

Church

Loan

#

200030120

282,725

4.600%,

8/1/2034

b

245,608

Total

245,608

Maryland

(2.1%)

Church

Loan

#

200030760

968,108

4.300%,

1/1/2044

b

737,388

Total

737,388

Massachusetts

(0.6%)

Church

Loan

#

200031490

247,586

4.300%,

6/1/2035

b

206,666

Total

206,666

Michigan

(1.3%)

Church

Loan

#

200032050

598,065

3.850%,

1/1/2037

b

483,715

Total

483,715

Minnesota

(7.3%)

Church

Loan

#

200030790

574,140

3.800%,

11/15/2039

b

531,122

Church

Loan

#

200031020

93,615

3.800%,

1/1/2035

b

83,989

Church

Loan

#

200031120

198,521

4.570%,

11/15/2032

b

191,239

Thrivent

Church

Loan

and

Income

Fund

Schedule

of

Investments

as

of

September

30,

2022

(unaudited)

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

schedule.

6

Principal

Amount

Church

Loans

(78.4%)

a

Value

Minnesota

(7.3%)

-

continued

Church

Loan

#

200031121

$

200,075

4.440%,

11/15/2032

b

$

193,661

Church

Loan

#

200031122

199,240

4.180%,

11/15/2032

b

197,142

Church

Loan

#

200031290

181,292

5.000%,

1/15/2031

b

176,328

Church

Loan

#

200031300

136,243

3.800%,

3/1/2030

b

126,143

Church

Loan

#

200031520

87,585

3.400%,

7/1/2035

b

81,144

Church

Loan

#

200031560

122,206

4.150%,

8/15/2039

b

115,324

Church

Loan

#

200031770

545,700

3.450%,

6/15/2041

b

424,818

Church

Loan

#

200031910

732,775

3.400%,

10/1/2046

b

576,326

Total

2,697,236

Mississippi

(0.6%)

Church

Loan

#

200031400

230,323

4.900%,

3/15/2034

b

217,420

Total

217,420

Missouri

(1.0%)

Church

Loan

#

200031480

470,257

3.875%,

5/15/2040

b

374,552

Total

374,552

New

Jersey

(2.1%)

Church

Loan

#

200030590

215,143

4.550%,

10/15/2034

b

187,030

Church

Loan

#

200031890

700,289

3.700%,

10/1/2041

b

561,343

Total

748,373

New

York

(2.2%)

Church

Loan

#

200018200

55,624

4.950%,

6/15/2029

b

52,182

Church

Loan

#

200031200

466,845

3.300%,

9/15/2044

b

443,834

Church

Loan

#

200031350

353,101

4.850%,

5/15/2039

b

310,752

Total

806,768

North

Carolina

(0.6%)

Church

Loan

#

200031320

269,677

4.200%,

3/15/2040

b

214,667

Total

214,667

Oregon

(0.8%)

Church

Loan

#

200031370

343,014

4.500%,

4/15/2039

b

284,398

Total

284,398

Principal

Amount

Church

Loans

(78.4%)

a

Value

Pennsylvania

(0.3%)

Church

Loan

#

200031390

$

99,583

3.400%,

3/1/2030

b

$

90,629

Total

90,629

South

Dakota

(2.7%)

Church

Loan

#

200030780

489,634

2.990%,

4/1/2031

b

467,484

Church

Loan

#

200030920

531,134

3.125%,

1/1/2035

b

505,105

Total

972,589

Tennessee

(1.3%)

Church

Loan

#

200031360

285,493

4.750%,

3/15/2037

b

264,318

Church

Loan

#

200031610

283,141

4.500%,

12/1/2040

b

213,023

Total

477,341

Texas

(10.6%)

Church

Loan

#

200030080

353,792

4.550%,

7/1/2039

b

329,970

Church

Loan

#

200030110

616,355

4.350%,

9/15/2039

b

505,171

Church

Loan

#

200030830

397,613

4.125%,

11/1/2044

b

381,921

Church

Loan

#

200031140

358,709

4.500%,

12/15/2033

b

320,235

Church

Loan

#

200031170

561,905

3.550%,

2/1/2035

b

495,767

Church

Loan

#

200031330

191,898

4.950%,

3/15/2044

b

185,148

Church

Loan

#

200031331

192,264

5.125%,

3/15/2044

b

181,302

Church

Loan

#

200031380

272,499

4.000%,

10/1/2040

b

206,730

Church

Loan

#

200031600

285,429

3.700%,

11/1/2035

b

228,969

Church

Loan

#

200031740

323,753

3.800%,

1/1/2031

b

278,374

Church

Loan

#

200031821

860,027

3.450%,

6/15/2041

b

693,881

Total

3,807,468

Virginia

(1.8%)

Church

Loan

#

200031090

336,804

3.400%,

1/15/2032

b

302,567

Church

Loan

#

200031110

243,473

3.400%,

1/15/2032

b

218,723

Church

Loan

#

200031650

163,016

2.550%,

12/15/2030

b

140,375

Total

661,665

Washington

(1.6%)

Church

Loan

#

200031800

699,959

3.750%,

6/1/2036

b

565,118

Total

565,118

Thrivent

Church

Loan

and

Income

Fund

Schedule

of

Investments

as

of

September

30,

2022

(unaudited)

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

schedule.

7

Principal

Amount

Church

Loans

(78.4%)

a

Value

Wisconsin

(3.6%)

Church

Loan

#

200030840

$

266,569

3.400%,

11/15/2038

b

$

233,339

Church

Loan

#

200030841

255,026

3.100%,

11/15/2038

b

242,995

Church

Loan

#

200030842

130,895

2.900%,

11/15/2038

b

130,469

Church

Loan

#

200031410

94,698

4.000%,

5/1/2030

b

85,002

Church

Loan

#

200031510

369,841

4.750%,

6/1/2039

b

322,313

Church

Loan

#

200031840

321,112

3.300%,

8/1/2036

b

272,793

Total

1,286,911

Total

Church

Loans

(cost

$32,980,172)

28,287,810

Principal

Amount

Long-Term

Fixed

Income

(

21.0%

)

Value

Mortgage-Backed

Securities

(21.0%)

Federal

National

Mortgage

Association

Conventional

30-Yr.

Pass

Through

3,050,000

4.000%, 

10/1/2048

d

2,829,947

1,450,000

4.500%, 

10/1/2048

d

1,381,238

3,475,000

5.000%, 

10/1/2048

d

3,384,885

Total

7,596,070

Total

Long-Term

Fixed

Income

(cost

$7,897,539)

7,596,070

Shares

or

Principal

Amount

Short-Term

Investments

(

22.4%

)

Value

Federal

Home

Loan

Bank

Discount

Notes

5,280,000

2.600%,

10/3/2022

e

5,280,000

Thrivent

Core

Short-Term

Reserve

Fund

220,702

3.170%

f

2,207,024

U.S.

Treasury

Bills

600,000

2.789%,

11/17/2022

e,g

597,863

Total

Short-Term

Investments

(cost

$8,083,649)

8,084,887

Total

Investments

(cost

$48,961,360)

121.8%

$43,968,767

Other

Assets

and

Liabilities,

Net

(21.8%)

(7,877,472)

Total

Net

Assets

100.0%

$36,091,295

a

All

m

ortgagees

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

an

interest

only

loan.  Interest

only

loans

represent

the

right

to

receive

monthly

interest

payments

on

an

underlying

loan

position

beginning

on

a

specified

date

for

an

agreed

upon

period.  The

outstanding

principal

amount

shown

is

the

outstanding

principal

balance

as

of

the

end

of

the

period.

d

Denotes

investments

purchased

on

a

when-issued

or

delayed-delivery

basis.

e

The

interest

rate

shown

reflects

the

yield.

f

The

interest

rate

shown

reflects

the

seven

day

yield

as

of

the

end

of

the

period.

g

At

September

30,

2022,

$318,860

of

investments

were

segregated

to

cover

exposure

to

a

counterparty

for

margin

on

open

mortgage-backed

security

transactions.

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

$1,238

Gross

unrealized

depreciation

(4,994,042)

Net

unrealized

appreciation

(depreciation)

($4,992,804)

Cost

for

federal

income

tax

purposes

$48,961,571

Thrivent

Church

Loan

and

Income

Fund

Schedule

of

Investments

as

of

September

30,

2022

(unaudited)

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

schedule.

8

Fair

Valuation

Measurements

The

following

table

is

a

summary

of

the

inputs

used

as

of

September

30,

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

$28,287,810

$–

$–

$28,287,810

Long-Term

Fixed

Income

Mortgage-Backed

Securities

7,596,070

–

7,596,070

–

Short-Term

Investments

5,877,863

–

5,877,863

–

Subtotal

Investments

in

Securities

$41,761,743

$–

$13,473,933

$28,287,810

Other

Investments  *

Total

Affiliated

Short-Term

Investments

2,207,024

Subtotal

Other

Investments

$2,207,024

Total

Investments

at

Value

$43,968,767

*

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.  

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.

Investments

in

Securities 

Beginning 

Value

3/31/2022

Realized

Gain/

(Loss)

^

Change

in

Unrealized

Appreciation/

(Depreciation)

* 

Purchases 

Sales /

Paydowns

Transfers

Into

Level

3#

Transfers

Out

of

Level

3 

@

Ending

Value 

9/30/2022

 Church

Loans

$29,792,611  

 $-

$(2,981,292) 

$3,015,080  

($1,538,589) 

$- 

$- 

$28,287,810  

Total 

$29,792,611

$- 

$(2,981,292) 

$3,015,080  

($1,538,589) 

$-  

$-  

$28,287,810  

*

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

-0.15%

to

3.20%

(weighted

average

of

1.09%),

U.S.

Treasury

yields,

and

corporate

credit

curve

yields

with

a

range

of

4.59%

to

6.39%

(weighted

average

of

5.49%).

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.

Thrivent

Church

Loan

and

Income

Fund

Schedule

of

Investments

as

of

September

30,

2022

(unaudited)

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

schedule.

9

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

3/31/2022

Gross

Purchases

Gross

Sales

Value

9/30/2022

Shares

Held

at

9/30/2022

%

of

Net

Assets

9/30/2022

Affiliated

Short-Term

Investments

Core

Short-Term

Reserve,

3.170%

$2,334

$5,848

$5,975

$2,207

221

6.1%

Total

Affiliated

Short-Term

Investments

2,334

2,207

6.1%

Total

Value

$2,334

$2,207

Fund

Net

Realized

Gain/(Loss)

Change

in

Unrealized

Appreciation/

(Depreciation)

Distributions

of

Realized

Capital

Gains

Income

Earned

4/1/2022

-

9/30/2022

Affiliated

Short-Term

Investments

Core

Short-Term

Reserve,

3.170%

$–

$–

$–

$21

Total

Income/Non

Income

Cash

from

Affiliated

Investments

$21

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.

10

As

of

September

30,

2022

(unaudited)

Church

Loan

and

Income

Fund

Assets

Investments

in

unaffiliated

securities

at

cost

$46,754,764

Investments

in

affiliated

securities

at

cost

$2,206,596

Investments

in

unaffiliated

securities

at

value

$41,761,743

Investments

in

affiliated

securities

at

value

2,207,024

Cash

13,182

Dividends

and

interest

receivable

87,035

Prepaid

expenses

40,943

Receivable

for:

Fund

shares

activity

44

Expense

reimbursements

61,860

Total

Assets

44,171,831

Liabilities

Distributions

payable

1,136

Accrued

expenses

85,041

Payable

for:

Investments

purchased

on

a

delayed-delivery

basis

7,897,539

Investment

advisory

fees

33,544

Administrative

fees

518

Transfer

agent

fees

1,413

Contingent

liabilities^

—

Deferred

loan

commitment

fees

57,586

Mortgage

dollar

roll

deferred

revenue

3,759

Total

Liabilities

8,080,536

Net

Assets

Capital

stock

(beneficial

interest)

42,562,387

Distributable

earnings/(accumulated

loss)

(6,471,092)

Total

Net

Assets

$36,091,295

Class

S

Share

Capital

$36,091,295

Shares

of

beneficial

interest

outstanding

(Class

S)

4,077,943

Net

asset

value

per

share

$8.85

^

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.

11

For

the

six

months

ended

September

30,

2022

(unaudited)

Church

Loan

and

Income

Fund

Investment

Income

Taxable

interest

$672,416

Income

from

mortgage

dollar

rolls

94,457

Income

from

affiliated

investments

20,577

Total

Investment

Income

787,450

Expenses

Adviser

fees

204,589

Administrative

service

fees

38,162

Audit

and

legal

fees

145,894

Custody

fees

2,840

Insurance

expenses

25,806

Printing

and

postage

expenses

Class

S

6,794

SEC

and

state

registration

expenses

11,224

Transfer

agent

fees

Class

S

8,495

Trustees'

fees

86,667

Pricing

service

fees

83,859

Other

expenses

22,547

Total

Expenses

Before

Reimbursement

636,877

Less:

Reimbursement

from

adviser

(450,887)

Total

Net

Expenses

185,990

Net

Investment

Income/(Loss)

601,460

Realized

and

Unrealized

Gains/(Losses)

Net

realized

gains/(losses)

on:

Investments

(641,693)

Change

in

net

unrealized

appreciation/(depreciation)

on:

Investments

(3,162,868)

Net

Realized

and

Unrealized

Gains/(Losses)

(3,804,561)

Net

Increase/(Decrease)

in

Net

Assets

Resulting

From

Operations

$(3,203,101)

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.

12

o

Church

Loan

and

Income

Fund

For

the

periods

ended

9/30/2022

(unaudited)

3/31/2022

Operations

Net

investment

income/(loss)

$601,460

$1,026,675

Net

realized

gains/(losses)

(641,693)

(567,677)

Change

in

net

unrealized

appreciation/(depreciation)

(3,162,868)

(2,625,074)

Net

Change

in

Net

Assets

Resulting

From

Operations

(3,203,101)

(2,166,076)

Distributions

to

Shareholders

From

income/realized

gains

Class

S

(603,606)

(1,029,442)

Total

from

income/realized

gains

(603,606)

(1,029,442)

Total

Distributions

to

Shareholders

(603,606)

(1,029,442)

Capital

Stock

Transactions

Class

S  

Sold

2,478,232

5,778,345

Distributions

reinvested

595,388

1,012,846

Redeemed

(1,087,541)

(2,885,872)

Total

Class

S

Capital

Stock

Transactions

1,986,079

3,905,319

Capital

Stock

Transactions

1,986,079

3,905,319

Net

Increase/(Decrease)

in

Net

Assets

(1,820,628)

709,801

Net

Assets,

Beginning

of

Period

37,911,923

37,202,122

Net

Assets,

End

of

Period

$36,091,295

$37,911,923

Capital

Stock

Share

Transactions

Class

S

shares

Sold

262,972

546,059

Distributions

reinvested

64,122

96,725

Redeemed

(118,581)

(279,968)

Total

Class

S

share

transactions

208,513

362,816

Thrivent

Church

Loan

and

Income

Fund

Statement

of

Cash

Flows

The

accompanying

Notes

to

Financial

Statements

are

an

integral

part

of

this

statement.

13

For

the

six

months

ended

September

30,

2022

(unaudited)

Church

Loan

and

Income

Fund

Cash

flows

from

operating

activities

Net

increase/(decrease)

in

net

assets

resulting

from

operations

$(3,203,101)

Adjustments

to

reconcile

net

change

in

net

assets

from

operations

to

net

cash

provided

by/(used

in)

operating

activities:

Purchases

of

long-term

investments

(55,973,741)

Purchases/sales

of

short-term

investments,

net

(5,715,007)

Proceeds

from

sale

of

long-term

investments

54,043,645

Change

in

net

unrealized

(appreciation)/depreciation

3,162,868

Net

realized

(gains)/losses

641,693

Net

accretion

of

bond

discounts

and

amortization

of

premiums

(34,730)

Net

change

in

payable

for

investments

purchased

on

a

delayed

delivery

basis

(4,482,852)

Net

change

in

receivable

for

investments

sold

on

a

delayed

delivery

basis

4,180,235

Net

change

in

dividends

and

interest

receivable

(3,250)

Net

change

in

prepaid

expenses

(19,787)

Net

change

in

accrued

expenses

61,803

Net

change

in

investment

advisory

fees

(2,708)

Net

change

in

administrative

fees

(42)

Net

change

in

transfer

agent

fees

(155)

Net

change

in

expense

reimbursements

14,180

Net

change

in

deferred

loan

commitment

fees

6,062

Net

change

in

mortgage

dollar

roll

deferred

revenue

(10,730)

Net

cash

provided

by/(used

in)

operating

activities

$(7,335,617)

Cash

flows

provided

by/(used

in)

financing

activities:

Proceeds

from

shares

issued,

net

of

change

in

receivable

for

fund

shares

activity

2,478,188

Distributions

to

shareholders,

paid

in

cash,

net

of

change

in

distributions

payable

(8,166)

Cost

of

shares

redeemed,

net

of

change

in

payable

for

fund

shares

activity

(1,088,308)

Net

cash

provided

by/(used

in)

financing

activities

$1,381,714

Net

increase/(decrease)

in

cash

$(5,953,903)

Cash

(beginning

balance)

$5,967,085

Cash

(ending

balance)

$13,182

Supplemental

disclosures

Non-cash

financing

activities

-

distributions

reinvested

$595,388

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

September

30,

2022

(unaudited)

14

(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

an

illiquid

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

using

market

quotations

when

they

are readily

available

pursuant

to

Rule

2a-5

under

the

1940

Act. 

The

Fund's

investments

are

recorded

at

fair

value

determined

in

good

faith

when

market

quotations

are

not

readily

available. 

The Board

has

authorized

the

Fund's

Investment

Adviser,

Thrivent

Asset

Management,

LLC

("Thrivent

Asset

Mgt."

or

the

"Adviser"),

which

is

designated

as

the

Valuation

Designee,

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

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

September

30,

2022

(unaudited)

15

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

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

September

30,

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

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

September

30,

2022

(unaudited)

16

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

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

September

30,

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

period

ended

September

30,

2022,

the

Fund had repurchase

offers

as

follows:  

For

the

offer

period

of

May

20,

2022

through

June

15,

2022:

For

the offer

period

of

August

22,

2022

through

September

15,

2022:

(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

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,

2023

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

Repurchase

Pricing

Date

Repurchase

Offer

Amount

%

of

Shares

Tendered

Number

of

Shares

Tendered

6/16/2022

 20%

2.5%

 101,282

Repurchase

Pricing

Date

Repurchase

Offer

Amount

%

of

Shares

Tendered

Number

of

Shares

Tendered

9/16/2022

20%

0.4%

17,299

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

September

30,

2022

(unaudited)

17

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.

To

the

extent

that

these

differences

are

permanent

in

nature,

GAAP

requires

such

amounts

to

be reclassified

within

the

capital

accounts

based

on

their

federal

tax-basis

treatment;

temporary

differences

do

not

require

reclassifications. 

At

fiscal

year-end,

the

character

and

amount

of

distributions,

on

a

tax

basis

and

components

of

distributable

earnings,

are finalized. 

Therefore,

as

of

September

30,

2022,

the

tax-basis balance

has

not

yet

been

determined. 

At

September

30,

2022,

the

Fund

had

accumulated

net

capital

loss

carryovers

as

follows: 

Church

Loan

and

Income

Fund

$732,775

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

six

months

ended

September

30,

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

September

30,

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

September

30,

2022,

related

parties

held 77.4%

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.

(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

Fund

Capital

Loss

Carryover

In

thousands

Fund

Purchases

Sales/

Paydowns

Church

Loan

and

Income

Fund

$3,015

$1,539

In

thousands

Fund

Purchases

Sales/

Paydowns

Church

Loan

and

Income

Fund

$52,959

$52,505

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

September

30,

2022

(unaudited)

18

of

infectious

illness,

public

health

threats,

war,

terrorism,

natural

disasters

or

similar

events.

As

of September

30,

2022,

the Fund

had

portfolio

concentration

of

78.4%

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

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

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

September

30,

2022

(unaudited)

19

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,

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

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

September

30,

2022

(unaudited)

20

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 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 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 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 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,

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

—

The

Fund

is

a

specialized

investment

offering

designed

to

suit

investors

willing

to

accept

limited

liquidity. 

As

such, establishing

and

maintaining

a

network

of

selling

broker-dealers

may

be

more

difficult

for

the

Fund

than

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

September

30,

2022

(unaudited)

21

for

other,

more

standard,

investment

funds.  This

could

negatively

impact

the

Fund's

ability

to raise

assets

and effectively implement its

investment

objective

and

strategy. 

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

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

Thrivent

Church

Loan

and

Income

Fund

Notes

to

Financial

Statements

September

30,

2022

(unaudited)

22

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

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.

23

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

text

Net

Realized

Gain

on

Investments

Church

Loan

and

Income

Fund

Class

S

Shares

Period

Ended

9/30/2022

(unaudited)

$

9.80

$

0.15

$

(0.95)

$

(0.80)

$

(0.15)

$

–

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

rates.  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.

24

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)

$

(0.15)

$

8.85

(8.20)%

$

36.1

1.00%

3.23%

3.42%

0.81%

147%

(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%

25

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.

Quarterly

Schedule

of

Investments

The

Fund

files

its

Schedule

of

Investments

on

Form

N-PORT

with

the

SEC,

Part

F

of

the

Fund’s

N-PORT

filing

for

the

first

and

third

fiscal

quarters

will

include

the

complete

schedule

of

investments.

The

Fund’s

most

recent

Schedule

of

Investments

can

be

found

at

thriventintervalfunds.com

and

SEC.gov.

Board

Approval

of

Investment

Management

Agreement

Section

15(c)

of

the

Investment

Company

Act

of

1940,

as

amended

(the

“1940

Act”),

requires

that

the

continuation

of

an

investment

advisory

agreement

between

a

fund

and

its

investment

adviser

be

annually

reviewed

and

approved

by

the

board.

Any

such

agreement

must

be

approved

by

a

vote

of

a

majority

of

the

trustees

who

are

not

parties

to

the

agreement

or

“interested

persons”

(as

defined

in

the

1940

Act)

of

a

party

to

the

agreement

(the

“Independent

Trustees”),

at

a

meeting

called

for

such

purpose.

At

its

meeting

on

June

21,

2022

(the

“Meeting”),

the

Board

of

Trustees

(the

“Board”)

of

Thrivent

Church

Loan

and

Income

Fund

(the

“Fund”),

including

the

Independent

Trustees,

considered

and

voted

unanimously

to

renew

the

existing

investment

management

agreement

(the

“Investment

Management

Agreement”),

as

amended,

between

the

Fund

and

Thrivent

Asset

Management,

LLC

(the

“Adviser”).

The

Board

met

in

person

for

such

approval.

In

connection

with

its

evaluation

of

the

Investment

Management

Agreement,

the

Board

reviewed

a

broad

range

of

information

requested

for

this

purpose

and

considered

a

variety

of

factors,

including

the

following:

1.

The

nature,

extent,

and

quality

of

the

services

provided

by

the

Adviser;

2.

The

performance

of

the

Fund;

3.

The

advisory

fee

and

net

operating

expense

ratio

of

the

Fund

compared

to

a

peer

group;

4.

The

cost

of

services

provided

and

profit

realized

by

the

Adviser;

5.

The

extent

to

which

economies

of

scale

may

be

realized

as

the

Fund

grows;

6.

Other

benefits

realized

by

the

Adviser

and

its

affiliates

from

their

relationship

with

the

Fund;

and

7.

Any

other

factors

that

the

Board

deemed

relevant

to

its

consideration.

At

a

prior

meeting,

as

well

as

directly

in

advance

of

the

Meeting,

the

Board’s

Contracts

Committee

(consisting

of

all

of

the

Independent

Trustees)

met

to

consider

information

relevant

to

the

renewal

process

furnished

by

the

Adviser.

The

Contracts

Committee

had

the

opportunity

to

ask

questions

and

made

certain

requests

for

additional

information

in

connection

with

its

consideration.

The

information

reviewed

by

the

Board

included

comparisons

of

the

advisory

fee,

other

fees,

net

operating

expenses

and

performance

of

the

Fund

in

comparison

to

peer

funds;

information

with

respect

to

services

provided

to

the

Fund

and

fees

charged,

including

effective

advisory

fees

that

take

into

account

fee

waivers

by

the

Adviser;

asset

and

flow

trends

for

the

Fund;

and

the

cost

of

services

and

profit

realized

by

the

Adviser

and

services

provided

by

its

affiliates

to

the

Fund.

The

Board

received

information

from

the

Adviser

regarding

the

personnel

providing

services

to

the

Fund,

including

investment

management,

compliance

and

administrative

personnel.

In

addition

to

its

review

of

the

information

presented

to

the

Board

during

the

contract

renewal

process,

the

Board

also

considered

information

received

from

management

throughout

the

course

of

the

year.

26

Additional

Information

(unaudited)

The

Independent

Trustees

were

represented

by

independent

counsel

throughout

the

review

process

and

during

executive

sessions

both

with

and

without

management

present

to

consider

the

re-approval

of

the

Investment

Management

Agreement.

Each

Independent

Trustee

relied

on

his

or

her

own

business

judgment

in

determining

the

weight

to

be

given

to

each

factor

considered

in

evaluating

the

materials

presented.

The

Contracts

Committee’s

and

Board’s

review

and

conclusions

were

based

on

a

comprehensive

consideration

of

all

information

presented

to

them

and

were

not

the

result

of

any

single

controlling

factor.

In

addition,

each

Trustee

may

have

weighed

individual

factors

differently.

Certain

factors

considered

and

the

conclusions

reached

with

respect

thereto

are

described

below.

Nature,

Extent

and

Quality

of

Services

At

each

of

the

Board’s

regular

quarterly

meetings,

management

presented

information

regarding

the

investment

management,

portfolio

trading

and

compliance

services

provided

to

the

Fund.

During

the

renewal

process,

the

Board

considered

the

specific

services

provided

under

the

Investment

Management

Agreement,

the

length

of

service,

investment

experience,

and

qualifications

of

the

portfolio

managers,

the

cost

structure

of

the

Fund,

the

Adviser’s

culture

of

compliance

and

support

that

reduce

risks

to

the

Fund,

the

Adviser’s

quality

of

services,

and

the

Adviser’s

efforts

to

retain

and

attract

key

employees,

as

well

as

overall

staffing

levels.

The

Board

also

received

reports

and

presentations

at

each

of

its

quarterly

meetings,

as

well

as

certain

loan

information

during

monthly

investment

meetings,

from

the

Fund’s

portfolio

managers,

including

information

regarding

the

loan

portfolio

and

the

securitized

assets

portfolio.

These

reports

and

presentations

gave

the

Board

the

opportunity

to

evaluate

the

abilities

of

the

portfolio

managers

and

the

quality

of

services

they

provide

to

the

Fund.

The

Board

also

acknowledged

the

continuing

entrepreneurial

efforts

of

the

Adviser

with

respect

to

the

Fund.

In

addition,

the

Board

noted

the

positive

community

impact

arising

from

the

Adviser’s

efforts

on

behalf

of

the

Fund.

Based

on

the

foregoing

information,

the

Board

concluded

that,

within

the

context

of

its

full

deliberations,

the

nature,

extent

and

quality

of

the

investment

advisory

services

provided

to

the

Fund

by

the

Adviser

supported

renewal

of

the

Investment

Management

Agreement.

Performance

of

the

Fund

The

Board

evaluated

information

on

the

performance

of

the

Fund

since

its

inception,

including

net

performance,

performance

as

compared

to

other

investments

and

accounts

managed

by

the

Adviser,

and

performance

as

compared

to

benchmark

index

returns.

The

Board

considered

that

peer

group

performance

was

difficult

to

identify

and

unlikely

to

provide

meaningful

or

appropriate

comparisons

for

the

Fund,

due

to

the

bespoke

nature

of

church

loans

and

the

Fund’s

investment

strategy.

Nonetheless,

the

Board

reviewed

information

about

numerous

other

interval

funds.

In

addition,

the

Board

considered

the

performance

reports

and

discussions

with

management

at

Board

and

Committee

meetings

throughout

the

year.

When

evaluating

investment

performance,

the

Board

considered

investment

performance

for

the

Fund

over

the

one-month,

three-month,

year-to-date,

and

one-year

periods,

as

well

as

since

inception.

The

Board

also

considered

the

performance

of

Thrivent

Financial

for

Lutherans’

insurance

general

account,

including

the

performance

of

any

church

loans

in

the

general

account,

and

a

comparison

of

the

performance

of

mortgage-backed

securities

(“MBS”)

in

the

Fund

against

the

performance

of

MBS

in

the

general

account.

The

Board

considered

that

the

insurance

company

general

account

functions

significantly

differently

from

a

fund

offered

to

outside

investors

and

that

factors

including

timing

of

investment,

differences

in

portfolio

composition,

valuation

methodologies,

and

regulatory

and

accounting

treatment

may

further

limit

the

comparability

of

the

performance.

Based

on

the

foregoing

information,

the

Board

concluded

that

the

performance

of

the

Fund

was

satisfactory

in

light

of

market

conditions,

and

that

the

performance

information

reviewed

demonstrated

the

Adviser’s

commitment

to

provide

the

Fund

with

quality

service

and

competitive

investment

performance.

Advisory

Fees

and

Fund

Expenses

The

Board

reviewed

information

comparing

the

Fund’s

advisory

fee

with

the

median

advisory

fee

of

several

groups

of

interval

funds

selected

based

on

generally

similar

investment

objectives.

The

Board

considered

both

the

contractual

and

effective

advisory

fee

for

the

Fund.

The

Board

noted

that

the

Fund’s

advisory

fee

was

below

the

median

advisory

fee

for

all

U.S.

interval

funds,

and

below

the

median

advisory

fee

for

both

the

Morningstar

Bond

and

Real

Estate

interval

fund

peer

group

categories.

The

Board

also

reviewed

information

on

the

Fund’s

overall

expense

ratio

with

reference

to

the

expense

ratios

of

the

comparison

group.

The

Board

noted

that

the

Fund’s

expense

ratio,

which

was

voluntarily

decreased

by

the

Adviser

effective

December

31,

2019,

with

such

waiver

continuing,

is

significantly

lower

than

the

median

for

all

U.S.

interval

funds,

and

below

the

median

for

interval

funds

in

the

Morningstar

Bond

category

and

the

Real

Estate

category.

The

Board

viewed

favorably

the

Adviser’s

reduction

of

the

Fund’s

expense

ratio

and

considered

the

effect

of

the

continuing

waivers

in

lowering

the

Fund’s

expenses.

27

Additional

Information

(unaudited)

Based

on

the

foregoing

information,

the

Board

concluded

that

the

advisory

fees

charged

under

the

Investment

Management

Agreement

were

reasonable.

Cost

of

Services

and

Profitability

The

Board

considered

the

Adviser’s

overall

estimate

of

profitability

for

the

Fund,

including

the

impact

of

the

Fund’s

current

scale.

The

Board

also

considered

the

impact

of

the

bespoke

nature

of

the

Fund’s

investment

strategy,

and

the

levels

of

support,

service,

and

oversight

that

the

Fund

requires

as

compared

to

a

traditional

bond

fund.

The

Board

also

considered

the

expense

reimbursements

and

waivers

in

effect.

Based

on

its

review

of

the

expense

and

profit

or

loss

information

provided

by

the

Adviser,

the

Board

concluded

that

the

profitability

levels

of

the

Adviser,

or

lack

thereof,

with

respect

to

the

Fund

were

reasonable

in

light

of

the

services

performed

by

the

Adviser.

Economies

of

Scale

In

considering

the

reasonableness

of

the

advisory

fee

rates,

the

Board

considered

whether

economies

of

scale

will

be

realized

as

the

Fund

grows

and

that

the

advisory

fee

does

not

currently

take

into

consideration

economies

of

scale.

The

Board

considered

information

provided

by

the

Adviser

related

to

advisory

fees

and

fee

waivers

and

the

possibility

of

future

growth

of

the

Fund,

noting

that

the

Board

will

have

a

regular

opportunity

to

reassess

any

such

factors.

The

Board

also

acknowledged

difficulty

in

generalizing

whether,

or

to

what

extent,

economies

in

the

advisory

function

may

be

realized

as

the

Fund’s

assets

increase.

Other

Benefits

to

the

Adviser

and

its

Affiliates

The

Board

considered

information

regarding

potential

“fall-out”

or

ancillary

benefits

that

the

Adviser

and

its

affiliates

may

receive

as

a

result

of

their

relationship

with

the

Fund,

both

tangible

and

intangible,

such

as

their

ability

to

leverage

investment

professionals

who

manage

other

portfolios,

an

enhanced

reputation

as

an

investment

adviser,

which

may

help

in

attracting

other

clients

and

investment

personnel,

the

engagement

of

affiliates

as

service

providers

to

the

Fund,

and

fees

collected

by

affiliates

for

services

provided

to

Fund

shareholders.

The

Board

concluded

that

such

benefits

appear

to

be

fair

and

reasonable.

Based

on

these

and

other

factors,

the

Contracts

Committee

unanimously

recommended

approval

of

the

Investment

Management

Agreement,

and

the

Board,

including

all

of

the

Independent

Trustees

voting

separately,

approved

the

continuation

of

the

agreement.

PRSRT

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Financial

4321

N.

Ballard

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Appleton,

WI

54919-0001

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