In the second quarter of 2025, the High Yield market demonstrated remarkable strength, delivering robust returns despite considerable volatility. This period was characterized by ongoing uncertainties related to tariffs and persistent geopolitical tensions, which cast a shadow over inflation prospects and global economic growth. Nevertheless, the market maintained its upward trajectory, reflecting underlying resilience.
Against this dynamic backdrop, the Thrivent High Yield Fund showcased its competitive edge. The fund's performance was in line with the Bloomberg US Corporate High Yield Bond Index, a key benchmark in the high-yield sector. More impressively, it surpassed the performance of its Morningstar High Yield peer group, indicating effective management strategies and a sound portfolio construction in a challenging environment.
The Thrivent High Yield Fund's ability to navigate market complexities and deliver strong results underscores the importance of a well-managed investment approach. Its performance in a quarter marked by economic uncertainty provides a compelling example of how strategic investment decisions can lead to favorable outcomes, offering investors confidence in its long-term potential.