The Thrivent High Yield Fund (LBHIX) achieved an 8.72% return in 2025, surpassing the Bloomberg US Corporate High Yield Bond Index's 8.62% performance. This outperformance was driven by declining high-yield spreads and Treasury yields. The fund's strategy focused on credit selection in specific industries amid a healthy economic outlook.
The Thrivent High Yield Fund delivered strong results for the year ending December 31, 2025, outperforming its benchmark, the Bloomberg US Corporate High Yield Bond Index, which returned 8.62%. The fund's return of 8.72% was supported by a decline in both high-yield spreads and Treasury yields, contributing to positive market conditions.
For the quarterly and one-year periods ending on that date, the Thrivent High Yield Fund exceeded the index's performance. Key contributors included effective credit selection in the midstream, retail, and packaging sectors, which generated positive relative returns throughout the year.
Looking ahead, the fund maintains a short duration stance and is modestly underweight in the lowest quality segment of the market. Although most economic and market indicators suggest a healthy outlook, the commentary notes that spreads are at decade lows, which moderates expectations for further gains.
This performance reflects the fund's strategic positioning in a favorable environment for high-yield bonds.