Summary
- On an annualized basis, Thrivent Government Bond Fund has outperformed the Bloomberg US Treasury Index by 59bps due to an allocation to MBS and strong duration risk management.
- We maintained our MBS overweight throughout the 1st quarter, which strongly contributed to our annual performance.
- For the 1st quarter, our overweight to MBS slightly underperformed US Treasuries.
Performance factors
During the quarter, the Fund underperformed the Bloomberg US Treasury Index by 8 bps. Our allocation to Mortgage-Backed Securities (MBS), which saw spreads widen into lower rates and higher rate volatility, had a negative impact on performance. Generically MBS spreads struggle
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