Summary
- Thrivent Municipal Bond Fund underperformed the Bloomberg Municipal Bond Index by -.73% in the first quarter of 2025. For the trailing 12 months the Fund outperformed the Index by .18%.
- The municipal market underperformed in the longer maturity bonds vs the Treasury market due to political uncertainty emanating from Washington D.C. combined with large supply and lower demand from traditional buyers of long-dated municipal bonds.
- The Federal Reserve (Fed) moved to a wait and see approach as it became clear that it was getting harder to project the trajectory of the economy.
- The municipal market did not participate in the Treasury rally in the longer-term maturities, causing a significant cheapening of the municipal to Treasury ratios.
Dzmitry Skazau
Performance factors
For the quarter the Fund underperformed the Bloomberg Municipal Index returning -.95% vs -.22%, for the Index. The portfolio outperformed the Bloomberg index for the trailing 12-month period ending March 31 by .18%.
The Fund’s
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