Thrivent Asset Management LLC

Item 5 – Fees and Compensation

Fees for advisory services provided to Funds are separately negotiated between TAM and the Funds
and must be approved by the Funds’ Boards of Trustees. Fees are based on a percentage of assets
under management. The fees and expenses for each Fund are set forth in the corresponding
prospectus for the respective Fund.

Fees for model portfolio services are negotiated with and by the program sponsor. At this time, TAM
does not receive any direct fees for the provision of model portfolios to the Managed Portfolios,
although it could receive such fees if negotiated with the program sponsor. TAM receives a portion
of the management fee charged to underlying investors by program sponsors of Model Delivered
SMA Programs. TAM receives advisory fees for the Affiliated Underlying Funds included within a
model portfolio. The timing and procedures for payment and termination of relationships relating to
the provision of model portfolios vary and are negotiated based on the nature, scope and type of
relationship involved. Clients of a program sponsor are encouraged to review all materials available
from the program sponsor concerning the program, the program sponsor itself and the program’s
terms, conditions and fees.

In managing the Funds and developing and maintaining model portfolios, TAM may allocate to open-
end funds, ETFs, closed-end funds, exchange traded notes (“ETNs”), and other pooled investment
vehicles, including Affiliated Underlying Funds. Where TAM determines to allocate to Affiliated
Underlying Funds, to the extent permitted by applicable law, TAM and its affiliates will generally be
entitled to earn more fees than if TAM had allocated to unaffiliated products as TAM earns an asset-
based advisory or management fee for managing the Affiliated Underlying Funds. This practice
creates a conflict of interest because TAM does not receive fees from unaffiliated funds and thus
receives an additional layer of fees when Affiliated Underlying Funds are utilized in its model
portfolios or by other Funds where the asset-based advisory or management fee of the Affiliated
Underlying Fund is applicable. TAM seeks to manage these conflicts by establishing ongoing
monitoring processes to determine whether the Affiliated Underlying Funds remain appropriate for
continued allocation. Given TAM’s extensive knowledge of the Affiliated Underlying Funds, including
how they are best utilized in various asset allocation strategies, TAM generally has a preference for
Affiliated Underlying Funds over unaffiliated funds with a similar investment strategy, which is likely to
result in a larger allocation to Affiliated Underlying Funds relative to unaffiliated funds. In addition, to
the extent an Affiliated Underlying Fund or a model portfolio allocates to other funds (affiliated or
unaffiliated), such Affiliated Underlying Fund or model portfolio will bear its pro rata share of the
operational costs and expenses of such underlying funds. Please see Item 8 – Methods of Analysis,
Investment Strategies and Risk of Loss for a description of TAM’s selection and monitoring
processes.

TAM’s investment capabilities with respect to certain Funds are marketed to various prospects and
intermediaries through TAM’s affiliated broker-dealer, Thrivent Distributors, LLC (“Thrivent

Distributors”), an indirect wholly owned subsidiary of Thrivent. Thrivent Distributors serves as the
distributor and principal underwriter for Thrivent Mutual Funds. Thrivent Distributors does not serve as
distributor and principal underwriter to Thrivent ETF Trust but does provide certain marketing and
distribution related services. Sales personnel of Thrivent Distributors are compensated on individual
fund and ETF sales for Affiliated Underlying Funds that may be included in the model portfolios. TAM
has a revenue sharing agreement with Thrivent Distributors pursuant to which TAM compensates
Thrivent Distributors for services relating to the promotion, offering, marketing or distribution of these
Funds and/or retention of assets maintained in these Funds. Thrivent Distributors is also the named
distributor and principal underwriter for Thrivent Core Funds.

Item 7 – Types of Clients

TAM provides investment advice to other registered investment advisers, broker-dealers, trust
companies and other financial intermediaries who sponsor model-based managed account programs
by providing model portfolios. Account minimums for model‐based programs are established by the
program sponsor.

TAM also serves as the investment adviser to registered investment companies, including ETFs.