UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-5075
Thrivent Mutual Funds
(Exact name of registrant as specified in charter)
625 Fourth Avenue South
Minneapolis, Minnesota 55415
(Address of principal executive offices) (Zip code)
John C. Bjork, Assistant Secretary
625 Fourth Avenue South
Minneapolis, Minnesota 55415
(Name and address of agent for service)
Registrant's telephone number, including area code: (612) 340-7005
Date of fiscal year end: April 30
Date of reporting period: April 30, 2004
Item 1. Report to Stockholders
Annual Report
April 30, 2004
The AAL U.S. Government Zero
Coupon Target Fund, Series 2006
[OBJECT OMITTED]
[GRAPHIC OMITTED: PAM MORET]
Dear Shareholder:
We are pleased to provide you with the annual report for the 12 months ended April 30, 2004 for The AAL U.S.
Government Zero Coupon Target Fund, Series 2006, managed by Thrivent Investment Management Inc.
Thrivent Investment Management Welcomes
New Chief Investment Officer
The one-year period was a fruitful one for investors with the stock market rebounding strongly from a prolonged
bear market, and a resurgent economy-a welcome change from previous periods. Changes in our asset management
business have been occurring as well led by the recent naming of Russell Swansen as our new chief investment
officer. We are tremendously excited about the opportunity to bring Russell on board. His broad experience,
talent and past successes will greatly benefit our shareholders. Russell takes over for Jim Abitz who retired at
the end of 2003 after a career of over thirty years in investment management and shareholder service. We salute
Jim's leadership, recognize his significant contributions and wish him well in all his future endeavors while at
the same time welcoming Russell and his vision for our asset management capabilities on the road ahead.
Building for the Future
Besides naming a new chief investment officer, Thrivent Investment Management is busily gearing up for the
fast-approaching merger of The AAL Mutual Funds and The Lutheran Brotherhood Family of Funds into a single
Thrivent Mutual Funds. The Thrivent Mutual Funds will offer:
o more investment options
o greater asset class diversification potential
o a simplified shareholder self-service process
Within the Thrivent Mutual Funds, product improve-ments continue:
o Matthew Finn--a new, experienced and successful large cap value portfolio manager, recently joined the
equities area this past spring
o Soon you will have access to an improved international stock option that combines proven growth and
value style managers into a single unique fund offering.
These changes are designed with you-the shareholder-in mind, enabling Thrivent Mutual Funds to serve ever more of
your investment needs.
Investing in Intergrity
On a final note, the past year was marked by revelations of ethical lapses and improper activities at a
surprising number of asset management companies. This has been disappointing and alarming for the rest of us in
the industry. As a part of a member-owned fraternal benefit society, we've been in the integrity "business" for
over a century and have remained committed to earning the trust of one very key group-our investors. In fact, we
are always looking for new opportunities to further bolster the trust our shareholders put in us. To this end, we
have been among the industry leaders in recently introducing leading-edge mutual fund board governance where
seven of eight directors are independent of Thrivent's management and dedicated solely to our shareholders' best
interests.
Thank you for continuing to turn to us for your financial solutions. We very much value your business.
Sincerely,
/s/ Pamela J. Moret
Pamela J. Moret
President
The AAL Mutual Funds
The AAL U.S. Government Zero Coupon
Target Fund, Series 2006
Over the last twelve months, interest rates rose slightly, resulting in total returns of 0.65% for the fiscal
year. A zero coupon security will typically perform better when rates are falling and will perform worse than
coupon paying securities when interest rates are rising. The short time to maturity of the security comprising
this portfolio makes this security a very defensive investment.
[GRAPHIC OMITTED: ALAN D. ONSTAD]
/s/ Alan D. Onstad
Alan D. Onstad, Portfolio Manager
$10,000 Investment
Including 4.75% Sales Charge*
The AAL U.S. Goverment Target Fund Series 2001 & 2006
[MOUNTAIN CHARTS OMITTED]
2006 LEHM
The AAL U.S.
Government Zero Lehman
Coupon Target Aggregate Consumer
Date Fund, Series 2006 Bond Index** Price Index***
04/30/94 $ 9,525 $ 10,000 $ 10,000
5/31/1994 9,520 9,999 10,007
6/30/1994 9,355 9,976 10,041
7/31/1994 9,714 10,175 10,068
8/31/1994 9,640 10,187 10,109
9/30/1994 9,231 10,037 10,136
10/31/1994 9,154 10,028 10,142
11/30/1994 9,238 10,006 10,156
12/31/1994 9,454 10,075 10,156
1/31/1995 9,726 10,275 10,197
2/28/1995 10,123 10,519 10,237
3/31/1995 10,189 10,583 10,271
4/30/1995 10,391 10,731 10,305
5/31/1995 11,383 11,147 10,326
6/30/1995 11,534 11,228 10,346
7/31/1995 11,284 11,203 10,346
8/31/1995 11,545 11,338 10,373
9/30/1995 11,773 11,449 10,393
10/31/1995 12,116 11,598 10,427
11/30/1995 12,488 11,771 10,421
12/31/1995 13,020 11,937 10,414
1/31/1996 13,011 12,016 10,475
2/28/1996 12,298 11,807 10,509
3/31/1996 12,046 11,725 10,563
4/30/1996 11,788 11,659 10,604
5/31/1996 11,674 11,635 10,624
6/30/1996 11,940 11,792 10,631
7/31/1996 11,923 11,824 10,651
8/31/1996 11,763 11,804 10,672
9/30/1996 12,114 12,010 10,706
10/31/1996 12,637 12,276 10,739
11/30/1996 13,074 12,486 10,760
12/31/1996 12,733 12,370 10,760
1/31/1997 12,654 12,408 10,794
2/28/1997 12,624 12,439 10,828
3/31/1997 12,301 12,301 10,855
4/30/1997 12,609 12,485 10,868
5/31/1997 12,730 12,603 10,862
6/30/1997 12,933 12,753 10,875
7/31/1997 13,657 13,096 10,889
8/31/1997 13,276 12,985 10,909
9/30/1997 13,621 13,176 10,936
10/31/1997 14,023 13,367 10,963
11/30/1997 14,086 13,429 10,957
12/31/1997 14,307 13,564 10,943
1/31/1998 14,632 13,738 10,963
2/28/1998 14,528 13,728 10,984
3/31/1998 14,531 13,775 11,004
4/30/1998 14,560 13,847 11,024
5/31/1998 14,830 13,978 11,045
6/30/1998 15,036 14,097 11,058
7/31/1998 15,010 14,127 11,072
8/31/1998 15,666 14,357 11,085
9/30/1998 16,482 14,693 11,099
10/31/1998 16,458 14,615 11,126
11/30/1998 16,280 14,698 11,126
12/31/1998 16,397 14,742 11,119
1/31/1999 16,395 14,847 11,147
2/28/1999 15,694 14,588 11,160
3/31/1999 15,705 14,669 11,194
4/30/1999 15,750 14,716 11,275
5/31/1999 15,325 14,587 11,275
6/30/1999 15,169 14,540 11,275
7/31/1999 15,022 14,478 11,309
8/31/1999 14,948 14,471 11,337
9/30/1999 15,053 14,639 11,391
10/31/1999 14,995 14,693 11,411
11/30/1999 14,907 14,692 11,418
12/31/1999 14,710 14,621 11,418
1/31/2000 14,610 14,573 11,445
2/28/2000 14,721 14,749 11,513
3/31/2000 15,104 14,944 11,608
4/30/2000 15,065 14,901 11,615
5/31/2000 15,123 14,894 11,621
6/30/2000 15,574 15,204 11,689
7/31/2000 15,629 15,342 11,710
8/31/2000 15,900 15,565 11,723
9/30/2000 16,086 15,662 11,784
10/31/2000 16,159 15,766 11,805
11/30/2000 16,600 16,024 11,811
12/31/2000 17,032 16,321 11,805
1/31/2001 17,233 16,588 11,879
2/28/2001 17,477 16,733 11,927
3/31/2001 17,671 16,817 11,954
4/30/2001 17,401 16,747 12,001
5/31/2001 17,330 16,848 12,056
6/30/2001 17,402 16,911 12,076
7/31/2001 17,897 17,290 12,042
8/31/2001 18,086 17,488 12,042
9/30/2001 18,618 17,691 12,096
10/31/2001 18,961 18,062 12,056
11/30/2001 18,562 17,813 12,035
12/31/2001 18,329 17,699 11,988
1/31/2002 18,373 17,843 12,015
2/28/2002 18,604 18,016 12,062
3/31/2002 18,128 17,716 12,130
4/30/2002 18,543 18,059 12,198
5/31/2002 18,756 18,213 12,198
6/30/2002 19,054 18,371 12,205
7/31/2002 19,603 18,592 12,219
8/30/2002 19,895 18,906 12,259
9/30/2002 20,458 19,212 12,280
10/31/2002 20,331 19,124 12,310
11/29/2002 19,996 19,119 12,310
12/31/2002 20,494 19,514 12,283
1/31/2003 20,336 19,531 12,337
2/28/2003 20,615 19,801 12,432
3/31/2003 20,582 19,785 12,507
4/30/2003 20,656 19,949 12,480
5/30/2003 21,055 20,320 12,460
6/30/2003 21,026 20,280 12,473
7/31/2003 20,532 19,598 12,487
8/29/2003 20,513 19,728 12,534
9/30/2003 20,954 20,250 12,575
10/31/2003 20,722 20,062 12,561
11/28/2003 20,685 20,109 12,527
12/31/2003 20,857 20,314 12,514
1/30/2004 20,905 20,478 12,575
2/27/2004 21,064 20,699 12,643
3/31/2004 21,150 20,855 12,724
4/30/2004 20,773 20,312 12,765
The Fund seeks high, relatively predictable investment returns from U.S. government securities over selected
periods of time, assuming investors reinvest the dividends and capital gains distributed by the Fund.
Average Annual Total Returns*
- ----------------------------------------------------------- ------------------- -------------------- -------------------
For the Period Ended April 30, 2004 1-Year 5-Year 10-Year
- ----------------------------------------------------------- ------------------- -------------------- -------------------
Without sales charge 0.65% 6.01% 8.05%
With sales charge -4.13% 4.98% 7.52%
- ----------------------------------------------------------- ------------------- -------------------- -------------------
* Past performance is not an indication of future results. Annualized total returns represent past performance and reflect
changes in share prices, the reinvestment of all dividends and capital gains, and the effects of compounding.
Investment return and principal value will fluctuate, and shares, when redeemed, may be worth more or less than
their original cost. Current performance may be lower or higher than the performance data quoted. Call
800-THRIVENT or visit www.thrivent.com for more current performance results. At various times, the Fund's adviser
waived its management fee and/or reimbursed Fund expenses. Had the adviser not done so, the Fund's total returns
would have been lower. The returns shown do not reflect taxes a shareholder would pay on distributions or
redemptions. The prospectus contains more complete information on the objectives, risks, charges and expenses of
the investment company which investors should read and consider carefully before investing. Please read your
prospectus carefully.
** An unmanaged index that encompasses five major classes of U.S. fixed-income securities: U.S. Treasury and
Government Agency securities, corporate debt obligations, mortgage-backed securities, asset-backed securities
and commercial mortgage backed securities. It is not possible to invest directly in the Index.
*** The Consumer Price Index is an inflationary indicator that measures the change in the cost of a fixed basket of
products and services, including housing, electricity, food and transportation. It is not possible to invest
directly in the Index.
PRICEWATERHOUSECOOPERS LLP
Suite 1500
100 E. Wisconsin Avenue
Milwaukee, WI 53202
Telephone (414) 212-1600
Facsimile (414) 212-1880
To the Shareholders and Trustees of The AAL Mutual Funds
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and
the related statement of operations and of changes in net assets and the financial highlights present fairly, in
all material respects, the financial position of The AAL U.S. Government Zero Coupon Target Fund, Series 2006,
(one of the portfolios constituting The AAL Mutual Funds, hereafter referred to as the "Fund") at April 30, 2004,
the results of its operations for the year then ended, the changes in its net assets for each of the two years in
the period then ended and the financial highlights for each of the five years in the period then ended, in
conformity with accounting principles generally accepted in the United States of America. These financial
statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of
the Fund's management; our responsibility is to express an opinion on these financial statements based on our
audits. We conducted our audits of the financial statements in accordance with the standards of the Public
Company Accounting Oversight Board (United States), which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included confirmation of securities at April
30, 2004 by correspondence with the custodian, provide a reasonable basis for our opinion.
June 7, 2004
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Schedule of Investments
As of April 30, 2004
The AAL U.S. Government Zero Coupon Target Fund, Series 2006 (a)
- -------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Market
AmountLong-Term Obligations (100.0%) Maturity Date Value
- -------------------------------------------------------------------------------------------------------------------
U.S. Zero Coupon (100.0%)
$1,638,000 U.S. Government Zero Coupon Bonds 2.72% 11/15/2006 $1,532,704
TOTAL INVESTMENTS (100.0%)
(amortized cost basis $1,340,047) $1,532,704
(a) The categories of investments are shown as a percentage of total investments.
The accompanying notes to the financial statements are an integral part of this schedule.
Statement of Assets and Liabilities
As of April 30, 2004
The AAL U.S. Government Zero Coupon Target Fund, Series 2006
-------------------------------------------------------------------------------------------------------
Assets
Investments at cost $1,340,047
Investments at value 1,532,704
Cash 6,858
Prepaid expenses 1,185
Receivable for trust shares sold 45
Receivable from affiliate 3,258
------------------------------------------------------------------------------ ------------------------
Total Assets 1,544,050
============================================================================== ========================
Liabilities
Income distributions payable 28,830
Accrued expenses 8,840
------------------------------------------------------------------------------ ------------------------
------------------------------------------------------------------------------ ------------------------
Total Liabilities 37,670
============================================================================== ========================
Net Assets
Trust Capital (beneficial interest) 1,306,286
Accumulated undistributed net investment income 805
Accumulated undistributed net realized gain on investments 6,632
Net unrealized appreciation on investments 192,657
------------------------------------------------------------------------------ ------------------------
Total Net Assets $1,506,380
============================================================================== ========================
Net Assets $1,506,380
Shares of beneficial interest outstanding 128,212
Net asset value per share $11.75
Maximum public offering price $12.34
The accompanying notes to the financial statements are an integral part of this statement.
Statement of Operations
For the year ended April 30, 2004
The AAL U.S. Government Zero Coupon Target Fund, Series 2006
-------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------ ------------------------
Investment Income
Taxable interest $104,507
------------------------------------------------------------------------------ ------------------------
------------------------------------------------------------------------------ ------------------------
Total Investment Income 104,507
============================================================================== ========================
============================================================================== ========================
Expenses
Accounting and pricing fees 1,103
Administrative service fees 102
Audit and legal fees 7,422
Custody fees 525
Printing and postage expense 4,958
SEC and state registration expense 5,780
Shareholder maintenance fees 56
Transfer agent fees 1,867
Trustees' fees and insurance expenses 4,691
Other expenses 803
------------------------------------------------------------------------------ ------------------------
------------------------------------------------------------------------------ ------------------------
Total Expenses Before Reimbursement 27,307
============================================================================== ========================
============================================================================== ========================
Less:
Reimbursement from adviser (11,883)
Fees paid indirectly (91)
------------------------------------------------------------------------------ ------------------------
------------------------------------------------------------------------------ ------------------------
Total Net Expenses 15,333
============================================================================== ========================
============================================================================== ========================
Net Investment Income 89,174
============================================================================== ========================
============================================================================== ========================
Realized and Unrealized Gains/(Losses) on Investments
Net realized gains on investments 12,814
Change in net unrealized appreciation/(depreciation) on investments (93,722)
------------------------------------------------------------------------------ ------------------------
------------------------------------------------------------------------------ ------------------------
Net Realized and Unrealized Gains/(Losses) on Investments (80,908)
============================================================================== ========================
============================================================================== ========================
Net Increase in Net Assets Resulting From Operations $8,266
============================================================================== ========================
The accompanying notes to the financial statements are an integral part of this statement.
Statement of Changes in Net Assets
As of April 30, 2004
The AAL U.S. Government Zero Coupon Target Fund, Series 2006
Year Ended Year Ended
4/30/2004 4/30/2003
- -------------------------------------------------------------- --------------------------- --------------------------
Operations
Net investment income $89,174 $92,246
Net realized gains on investments 12,814 29,962
Change in net unrealized appreciation/(depreciation)
on investments (93,722) 51,190
- -------------------------------------------------------------- --------------------------- --------------------------
- -------------------------------------------------------------- --------------------------- --------------------------
Net Increase in Net Assets Resulting
from Operations 8,266 173,398
============================================================== =========================== ==========================
============================================================== =========================== ==========================
Distributions to Shareholders
From net investment income (89,174) (92,246)
From net realized gains (28,831) (21,496)
- -------------------------------------------------------------- --------------------------- --------------------------
- -------------------------------------------------------------- --------------------------- --------------------------
Total Distributions to Shareholders (118,005) (113,742)
============================================================== =========================== ==========================
============================================================== =========================== ==========================
Trust Share Transactions
Income dividends reinvested 87,476 89,767
Capital gains distributions reinvested 28,587 21,325
Redemption of trust shares (79,054) (156,671)
- -------------------------------------------------------------- --------------------------- --------------------------
- -------------------------------------------------------------- --------------------------- --------------------------
Net Increase/(Decrease) in Trust Capital 37,009 (45,579)
============================================================== =========================== ==========================
============================================================== =========================== ==========================
Net Increase/(Decrease) in Net Assets (72,730) 14,077
============================================================== =========================== ==========================
============================================================== =========================== ==========================
Net Assets Beginning of Period 1,579,110 1,565,033
============================================================== =========================== ==========================
============================================================== =========================== ==========================
Net Assets End of Period $1,506,380 $1,579,110
============================================================== =========================== ==========================
The accompanying notes to the financial statements are an integral part of this statement.
Notes to Financial Statements
As of April 30, 2004
The AAL U.S. Government Zero Coupon Target Fund, Series 2006
A. Organization
The AAL Mutual Funds (the "Trust") was organized as a Massachusetts Business Trust on March 31, 1987 and is
registered as an open-end management investment company under the Investment Company Act of 1940. The Trust
commenced operations on July 16, 1987. As of February 1, 2004, the Trust consists of fifteen equity Funds, eight
fixed-income Funds and a money market Fund of which one equity and three fixed-income funds have not yet
commenced operations.
On November 14, 1990, The AAL U.S. Government Zero Coupon Target Fund, Series 2006 (the "Fund"), commenced
operations. Effective June 1, 1993, the Board of Trustees of The AAL Mutual Funds closed the Fund to new
shareholders and the additional purchases of shares by existing shareholders.
Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities
arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the
Trust enters into contracts with vendors and others that provide general damage clauses. The Trust's maximum
exposure under these contracts is unknown, as this would involve future claims that may be made against the
Trust. However, based on experience, the Trust expects the risk of loss to be remote.
B. Significant Accounting Policies
Valuation - Securities traded on national securities exchanges are valued at the last reported sales prices. All
other securities are valued at official closing price if such quotations are readily available. Otherwise, such
securities are valued at a fair value as determined in good faith by the Adviser under supervision of the Board
of Trustees.
Federal Income Taxes - The Fund intends to comply with the requirements of the Internal Revenue Code which are
applicable to regulated investment companies and to distribute substantially all of its taxable income to its
shareholders. The Fund accordingly anticipates paying no Federal income taxes and no Federal income tax provision
was required.
Fees Paid Indirectly - The Fund has a deposit arrangement with the custodian whereby interest earned on
uninvested cash balances is used to pay a portion of custodian fees. This deposit arrangement is an alternative
to overnight investments.
Distributions to Shareholders - Net investment income is distributed to each shareholder as a dividend.
Dividends from the Fund are declared daily and distributed annually. Net realized gains from securities
transactions, if any, are distributed at least annually in the calendar year.
Use of Estimates - The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America require management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses during the reporting period. Actual results
could differ from these estimates.
Other - For financial statement purposes, investment security transactions are accounted for on the trade date.
Interest income is recognized on an accrual basis. Bond discount is amortized over the life of the respective
bonds on the interest method. Realized gains or losses on sales are determined on a specific cost identification
basis. Generally accepted accounting principles require permanent financial reporting and tax differences be
reclassified to trust capital. No reclassifications were necessary at April 30, 2004.
C. Investment Advisory Management Fees and Transactions with Related Parties
The Trust has entered into an Investment Advisory Agreement with Thrivent Investment Management Inc. (the
"Adviser") under which the Fund pays a fee for investment advisory services. The annual rate of fees under the
Investment Advisory Agreement are calculated at 0.50 of 1% of the average daily net assets of the Fund. Payments
under the Investment Advisory Agreement were discontinued effective July 1, 1993.
The Trust has adopted a distribution plan (the "Plan") pursuant to Rule 12b-1 under the Investment Company Act of
1940. The Plan authorizes the Trust to use a portion of its assets to finance certain sales activities relating
to the distribution of shares to investors. Payments under the Plan are equal to a maximum of 0.10 of 1% of
average daily net assets. Payments under the Plan were discontinued effective July 1, 1993.
Each Trustee who is not affiliated with Thrivent Financial for Lutherans or the Adviser receives an annual fee
from the Fund for services as a Trustee and is eligible to participate in a deferred compensation plan with
respect to these fees. Each participant's deferred compensation account will increase or decrease as if it were
invested in shares of the Funds of their choice.
Trustees not participating in the above plan received $249 in fees for the year ended April 30, 2004, from the
Fund. No remuneration has been paid by the Trust to any of the officers or affiliated Trustees of the Trust. In
addition, the Trust reimbursed unaffiliated Trustees for reasonable expenses incurred in relation to attendance
at the meetings.
The Fund is charged for those expenses that are directly attributable to it, such as advisory, custodian and
certain shareholder service fees, while other expenses that cannot be directly attributable to the Fund are
allocated among The AAL Mutual Funds in proportion to the net assets, number of shareholder accounts, or other
reasonable basis of the respective Fund.
The Adviser has voluntarily reimbursed the Fund for all expenses in excess of 1% of average daily net assets
since inception.
Thrivent Financial for Lutherans is the ultimate parent company for Thrivent Investment Management Inc.
D. Security Transactions
During the year ended April 30, 2004, there were no purchases and $88,042 in sales. All sales were in U.S.
Government obligations.
E. Federal Income Tax Information
The cost basis of the investments is the same for financial reporting purposes and Federal income tax purposes.
The net unrealized appreciation on investments at April 30, 2004 was $192,657. There was no depreciation on
investments as of April 30, 2004.
During the years ended April 30, 2004 and April 30, 2003, The AAL U.S. Government Zero Coupon Target Fund, Series
2006 distributed $89,174 and $92,246 from ordinary income, and $28,831 and $21,496 from long-term capital gains,
respectively.
At April 30, 2004, undistributed ordinary income and long-term capital gains for tax purposes were $3,607 and
$6,632, respectively.
Shareholder Notification of Federal Tax Status
During the year ended April 30, 2004, The AAL U.S. Government Zero Coupon Target Fund, Series 2006 designates
$28,831 as long-term capital gains.
F. Trust Transactions
Transactions in trust shares for the years ended April 30, 2004 and 2003 were as follows:
4/30/2004 4/30/2003
Income dividends reinvested 7,278 7,025
Capital gains reinvested 2,380 1,713
Shares redeemed (6,428) (12,316)
------ -------
Net Change in Trust Shares 3,230 (3,578)
Financial Highlights
Per Share Information (a)
The AAL U.S. Government Zero Coupon Target Fund, Series 2006
Year Year Year Year Year
Ended Ended Ended Ended Ended
4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ------------------------------------------------------- ------------ ------------- ------------ ------------ ------------
- ------------------------------------------------------- ------------ ------------- ------------ ------------ ------------
Net Asset Value, Beginning of Period $12.63 $12.17 $12.22 $11.27 $12.39
Income from Investment Operations
Net investment income 0.71 0.73 0.71 0.72 0.72
Net realized and unrealized gain/(loss)
on investments (b) (0.64) 0.63 0.07 1.00 (1.02)
- ------------------------------------------------------- ------------ ------------- ------------ ------------ ------------
- ------------------------------------------------------- ------------ ------------- ------------ ------------ ------------
Total from Investment Operations 0.07 1.36 0.78 1.72 (0.30)
- ------------------------------------------------------- ------------ ------------- ------------ ------------ ------------
- ------------------------------------------------------- ------------ ------------- ------------ ------------ ------------
Less Distributions from:
Net investment income (0.71) (0.73) (0.71) (0.72) (0.72)
Net realized gain on investments (0.24) (0.17) (0.12) (0.05) (0.10)
- ------------------------------------------------------- ------------ ------------- ------------ ------------ ------------
- ------------------------------------------------------- ------------ ------------- ------------ ------------ ------------
Total Distributions (0.95) (0.90) (0.83) (0.77) (0.82)
- ------------------------------------------------------- ------------ ------------- ------------ ------------ ------------
- ------------------------------------------------------- ------------ ------------- ------------ ------------ ------------
Net Asset Value, End of Period $11.75 $12.63 $12.17 $12.22 $11.27
======================================================= ============ ============= ============ ============ ============
======================================================= ============ ============= ============ ============ ============
Total return (c) 0.65% 11.28% 6.53% 15.28% (2.29)%
Net assets, end of period (in thousands) $1,506 $1,579 $1,565 $1,612 $1,467
Ratio of expenses to average net assets 1.00% 0.91% 1.00% 0.99% 0.98%
Ratio of net investment income to average net assets 5.82% 5.73% 5.80% 6.02% 6.21%
Portfolio turnover rate 0.00% 0.00% 0.00% 0.00% 0.00%
If the adviser had not reimbursed expenses
the ratios would have been:
Ratio of expenses to average net assets 1.78% 1.55% 1.27% 1.07% 0.98%
Ratio of net investment income to average net assets 5.04% 5.09% 5.53% 5.95% 6.21%
(a) All per share amounts have been rounded to the nearest cent.
(b) The amount shown may not correlate with the change in aggregate gains and losses of portfolio securities
due to the timing of sales and redemptions of fund shares.
(c) Total investment return assumes dividend reinvestment and does not reflect any deduction for sales
charges.
The accompanying notes to the financial statements are an integral part of this schedule.
Board of Trustees and Officers
The following table provides information about the Trustees and officers of the Trust. Unless otherwise
indicated, the business address of each Trustee and officer is 625 Fourth Avenue South, Minneapolis, Minnesota
55415. Additional information about the Trustees is available in the Trust's Statement of Additional
Information, which you may obtain without charge by calling 1-800-THRIVENT (1-800-847-4836).
Interested Trustees/1/
Position with Trust Principal Number of Portfolios
Name, Address, and Length Occupation(s) During in Fund Complex Other Directorships
and Age of Time Served/2/ Past 5 Years Overseen by Trustee/4/ Held by Trustee
- ------------------------- ---------------------- ---------------------- ----------------------- ----------------------
Pamela J. Moret President since Executive Vice 26 of the Thrivent Lutheran World
Age 48 2002; Trustee since President, Marketing Series Fund, Inc.; 20 Relief; Minnesota
2004 and Products, of The AAL Mutual Public Radio
Thrivent Financial Funds
for Lutherans since
2002; Senior Vice
President, Products,
American Express
Financial Advisors
from 2001 to 2002;
Vice President,
Variable Assets,
American Express
Financial Advisors
from 1996 to 2000
Independent Trustees/3/
Position with Trust Principal Number of Portfolios
Name, Address, and Length Occupation(s) During in Fund Complex Other Directorships
and Age of Time Served/2/ Past 5 Years Overseen by Trustee/4/ Held by Trustee
- ------------------------- ---------------------- ---------------------- ----------------------- ----------------------
- ------------------------- ---------------------- ---------------------- ----------------------- ----------------------
F. Gregory Campbell Trustee since 1992 President, Carthage 26 of the Thrivent ELCA University and
Age 64 College Series Fund, Inc.; 20 College Employees'
of The AAL Mutual Health Benefit
Funds Board; ELCA Risk
Management Board;
Trustee, Johnson
Family Funds, Inc.,
an investment
company consisting
of four portfolios;
Kenosha Hospital and
Medical Center
Board; Prairie
School Board; United
Health Systems Board
Herbert F. Trustee since 2003 Management 26 of the Thrivent None
Eggerding, Jr. consultant to Series Fund, Inc.; 20
Age 66 several privately of The AAL Mutual
owned companies Funds; 11 of The
Lutheran Brotherhood
Family of Funds
Richard L. Gady Trustee since 1987 Retired; previously 26 of the Thrivent International
Age 61 Vice President, Series Fund, Inc.; 20 Agricultural
Public Affairs and of The AAL Mutual Marketing
Chief Economist, Funds Association Board
Conagra, Inc.
(agribusiness)
Edward W. Smeds Trustee since 1999 Retired 26 of the Thrivent Chairman of Carthage
Age 68 Series Fund, Inc.; 20 College Board
of The AAL Mutual
Funds
Noel K. Estenson Trustee since 2004 Retired; previously 26 of the Thrivent None
Age 65 President and Chief Series Fund, Inc.; 11
Executive Officer, of The Lutheran
CenexHarvestStates Brotherhood Family of
(farm supply and Funds; 20 of The AAL
marketing and food Mutual Funds
business)
Jodi L. Harpstead Trustee since 2004 On sabbatical. 26 of the Thrivent Trustee, Delta
Age 47 Previously Vice Series Fund, Inc.; 11 Dental Plan of
President & General of The Lutheran Minnesota
Manager, Cardiac Brotherhood Family of
Surgery Technologies Funds; 20 of The AAL
for Medtronic, Inc. Mutual Funds
(medical products
and technologies
business) since
2002; President
Global Marketing and
U.S. Sales, Cardiac
Rhythm Management
for Medtronic, Inc.
from 2001 to 2002;
Vice President, U.S.
Pacing Sales for
Medtronic, Inc. from
1996 to 2001
Connie M. Levi Trustee since 2004 Retired 26 of the Thrivent Trustee, Norstan,
Age 64 Series Fund, Inc., 11 Inc.
of The Lutheran
Brotherhood Family of
Funds; 20 of The AAL
Mutual Funds
Officers
Position with
Name, Address Trust and
and Age Length of Service/2/ Principal Occupation During the Past 5 Years
- ------------------------- ---------------------- ---------------------------------------------------------------------
Pamela J. Moret President since 2002 Executive Vice President, Marketing and Products, Thrivent
Age 48 Financial since 2002; Senior Vice President, Products, American
Express Financial Advisors from 2000 to 2001; Vice President,
Variable Assets, American Express Financial Advisors from 1996 to
2000
James E. Nelson Secretary since 2003 Vice President, Securities Law, Thrivent Financial since 2001;
Age 44 Counsel and head of Insurance Practice Group, Law Division of ING
ReliaStar (formerly ReliaStar Financial Corp.) from 1998 to 2001
Charles D. Gariboldi Treasurer since 1999 Vice President, Investment Accounting, Thrivent Financial
Age 44
Russell W. Swansen Vice President since Chief Investment Officer, Thrivent Financial, since 2004; Managing
Age 46 2004 Director, Colonnade Advisors, LLC, from 2001 to 2003, President and
Chief Investment Officer of PPM American from 1999 to 2000
Karl D. Anderson Vice President since Vice President, Investment Product Solutions Management, Thrivent
Age 42 2003 Financial
Frederick P. Johnson Vice President since Vice President, Investment Operations, Thrivent Financial
Age 41 2003
Marnie L. Vice President since Vice President, Customer Interaction Department, Thrivent Financial
Loomans-Thuecks 2004
4321 North Ballard Road
Appleton, WI
Age 41
Thomas R Mischka Vice President and Vice President of Divisional Support Services, Thrivent Financial
4321 North Ballard Road Anti-Money
Appleton, WI Laundering Officer
Age 44 since 2003
David R. Spangler Assistant Vice Director, of Investment Product Management, Thrivent Financial
Age 37 President since 2004 since 2002; Vice President- Product Development, Wells Fargo
Bank-Funds Management Group, from 2000 to 2002; Analyst, MCSI,
Inc., 2000; Vice President-Product Development, US Bank-First
American Funds, 1997 to 2000
Brett L. Agnew Assistant Secretary Senior Counsel, Thrivent Financial since 2001;Consultant, Principal
Age 33 since 2001 Financial Group from 1998 to 2001
John C. Bjork Assistant Secretary Senior Counsel, Thrivent Financial
Age 50 since 2003
Marlene J. Nogle Assistant Secretary Senior Counsel, Thrivent Financial
Age 56 since 2003
/1/"Interested person" of the Trust as defined in the Investment Company Act of 1940 by virtue of a position with
Thrivent Financial. Ms. Moret is considered an interested person because of her principal occupation with
Thrivent Financial, the parent company of the adviser and an affiliate of the Trust.
/2/Each Trustee serves an indefinite term until his or her successor is duly elected and qualified. The bylaws of
the Trust provide that each Trustee must retire at the end of the year in which the Trustee attains age 70.
Officers serve at the discretion of the board until their successors are duly appointed and qualified.
/3/The Trustees and Nominees other than Ms. Moret are not "interested persons" of the Trust and are referred to as
"Independent Trustees."
/4/The "Fund Complex" includes the 11 series of The Lutheran Brotherhood Family of Funds, the 20 series of The AAL
Mutual Funds, and the 26 series of Thrivent Series Fund, Inc.
Results of Special Shareholder Meetings
The AAL Mutual Funds
Special meetings of the shareholders of each of the series of The AAL Mutual Funds (the "Trust") were held on
March 9, 2004. The matters voted upon at the meetings and the shares cast for, to withhold, against, or to
abstain are set forth as follows:
Proposal 1-To elect a Board of Trustees
To elect Pamela J. Moret as Trustee: For: 471,360,619.587 Withhold: 25,282,126.505
To elect F. Gregory Campbell as Trustee: For: 472,780,339.866 Withhold: 23,862,406.226
To elect Herbert F. Eggerding as Trustee: For: 472,897,366.743 Withhold: 23,745,379.349
To elect Noel K. Estenson as Trustee: For: 472,290,330.509 Withhold: 24,352,415.583
To elect Richard L. Gady as Trustee: For: 472,881,001.618 Withhold: 23,761,744.474
To elect Jodi L. Harpstead as Trustee: For: 472,531,336.299 Withhold: 24,111,409.793
To elect Connie M. Levi as Trustee: For: 472,032,037.324 Withhold: 24,610,708.768
To elect Edward W. Smeds as Trustee: For: 472,508,991.587 Withhold: 24,133,754.505
Proposal 2A-To amend the fundamental investment restriction on diversification:
The AAL U.S. Government Zero Coupon Target Fund, Series 2006 For: 66,222.562 Against: 1,705.379 Abstain: 3,384.826
Proposal 2B-To amend the fundamental investment restriction on lending:
The AAL U.S. Government Zero Coupon Target Fund, Series 2006 For: 65,596.013 Against: 2,100.785 Abstain: 3,615.969
Proposal 2C-To amend the fundamental investment restriction on borrowing and issuing senior securities:
The AAL U.S. Government Zero Coupon Target Fund, Series 2006 For: 64,566.206 Against: 3,130.592 Abstain: 3,615.969
Proposal 2D-To amend the fundamental investment restriction on the purchase or sale of real estate:
The AAL U.S. Government Zero Coupon Target Fund, Series 2006 For: 65,596.013 Against: 2,100.785 Abstain: 3,615.969
Proposal 2E-To amend the fundamental investment restriction on the purchase or sale of commodities:
The AAL U.S. Government Zero Coupon Target Fund, Series 2006 For: 65,998.022 Against: 1,698.776 Abstain: 3,615.969
Proposal 2F-To amend the fundamental investment restriction on the concentration of assets:
The AAL U.S. Government Zero Coupon Target Fund, Series 2006 For: 65,553.686 Against: 2,143.112 Abstain: 3,615.969
Proposal 2G-To amend the fundamental investment restriction on underwriting the securities of other issuers:
The AAL U.S. Government Zero Coupon Target Fund, Series 2006 For: 63,690.740 Against: 3,604.049 Abstain: 4,017.978
Proposal 2H-To eliminate the fundamental investment restriction on margin transactions:
The AAL U.S. Government Zero Coupon Target Fund, Series 2006 For: 63,690.740 Against: 3,604.049 Abstain: 4,017.978
Proposal 2I-To eliminate the fundamental investment restriction on short sales:
The AAL U.S. Government Zero Coupon Target Fund, Series 2006 For: 65,517.962 Against: 2,178.836 Abstain: 3,615.969
Proposal 2J-To eliminate the fundamental investment restriction on the pledge of assets:
The AAL U.S. Government Zero Coupon Target Fund, Series 2006 For: 64,968.215 Against: 2,728.583 Abstain: 3,615.969
Proposal 2K-To eliminate the fundamental investment restriction on oil, gas, or mineral investments:
The AAL U.S. Government Zero Coupon Target Fund, Series 2006 For: 65,998.022 Against: 1,698.776 Abstain: 3,615.969
Proposal 2L-To eliminate the fundamental investment restriction on restricted securities:
The AAL U.S. Government Zero Coupon Target Fund, Series 2006 For: 63,295.334 Against: 4,401.464 Abstain: 3,615.969
Proposal 2M-To eliminate the fundamental investment restriction on unseasoned issuers:
The AAL U.S. Government Zero Coupon Target Fund, Series 2006 For: 63,295.334 Against: 4,401.464 Abstain: 3,615.969
Proposal 2N-To eliminate the fundamental investment restriction on investments in other investment companies:
The AAL U.S. Government Zero Coupon Target Fund, Series 2006 For: 64,170.800 Against: 3,525.998 Abstain: 3,615.969
Proposal 2O-To eliminate the fundamental investment restriction on control securities:
The AAL U.S. Government Zero Coupon Target Fund, Series 2006 For: 63,295.334 Against: 3,999.455 Abstain: 4,017.978
Proposal 3A-To amend the Declaration of Trust regarding the voting requirements for a reorganization of the Trust
or a series of the Trust:
For: 457,132,177.569 Against: 15,857,853.102 Abstain: 23,652,715.421
Proposal 3B-To amend the Declaration of Trust regarding the requirements for a liquidation of the Trust or a class or series
of the Trust:
For: 449,807,620.028 Against: 23,813,745.170 Abstain: 23,021,380.894
Proposal 3C-To amend the Declaration of Trust to eliminate the restriction on involuntary redemptions of small accounts:
For: 453,648,066.605 Against: 19,713,386.629 Abstain: 23,281,292.858
Proposal 4-To amend the investment objective for The AAL Equity Income Fund
Proposal 5-To authorize Thrivent Investment Management Inc., upon approval of the Board of Trustees, to enter into and amend
subadvisory agreements without shareholder approval:
The AAL U.S. Government Zero Coupon Target Fund, Series 2006 For: 64,170.800 Against: 3,525.998 Abstain: 3,615.969
- -------------------------------------------------------------------------------------------------------------------
We're Listening to You!
- -------------------------------------------------------------------------------------------------------------------
In response to shareholder concerns regarding multiple
mailings, we are sending one shareholder report for The
AAL Mutual Funds to each household. This consolidation
helps reduce printing and postage costs, thereby saving
shareholders' money. If you wish to receive an additional
copy of this report, call us toll free at (800) 847-4836.
This report is submitted for the information of shareholders of The AAL Mutual Funds. It is not authorized for
distribution to prospective investors unless preceded or accompanied by the current prospectus for The AAL Mutual
Funds, which contains more complete information about the Funds, including investment policies, charges and
expenses.
[OBJECT OMITTED]
Item 2. Code of Ethics
As of the end of the period covered by this report, registrant has adopted a code of
ethics (as defined in Item 2 of Form N-CSR, applicable to registrant's Principal
Executive Officer, Principal Financial Officer, and Principal Accounting Officer. No
substantive amendments were approved or waivers were granted to such code of ethics
during the period covered by this report. A copy of this code of ethics is filed as
an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
Registrant's Board of Trustees has determined that Herbert F. Eggerding, Jr., an
independent trustee, is the Audit Committee Financial Expert.
Item 4. Principal Accountant Fees and Services
(a)Audit Fees
The aggregate fees billed by registrant's independent public accountants,
PricewaterhouseCoopers LLP ("PwC") for each of the last two fiscal years for
professional services rendered in connection with the audit of registrant's
annual financial statements or services that are normally provided by the
accountant in connection with statutory and regulatory filings or engagements
were $246,050 for the year ended April 30, 2003, and $220,800 for the year ended
April 30, 2004.
(b)Audit-Related Fees
The aggregate fees PwC billed to registrant for each of the last two fiscal years
for assurance and other services which are reasonably related to the performance
of registrant's audit and are not reported under Item 4(a) were $0 and $0 for the
years ended April 30, 2003 and
April 30, 2004, respectively. The aggregate fees PwC billed to registrant's
investment adviser and any entity controlling, controlled by, or under common
control with registrant's investment adviser for assurance and other services
directly related to the operations and financial reporting of registrant were $0
for the year ended April 30, 2003, and $0 for the year ended April 30, 2004.
(c)Tax Fees
The aggregate tax fees PwC billed to registrant for each of the last two fiscal
years for tax compliance, tax advice, and tax planning services were $173,525 for
the year ended April 30, 2003, and $95,000 for the year ended April 30, 2004.
The aggregate tax fees PwC billed to registrant's investment adviser and any
entity controlling, controlled by, or under common control with registrant's
investment adviser for services directly related to the operations and financial
reporting of registrant were $0 for the year ended April 30, 2003, and $0 for the
year ended April 30, 2004.
(d)All Other Fees
For the fiscal years ended April 30, 2004 and 2003, registrant paid PwC no other
fees. The aggregate fees PwC billed to registrant's investment adviser and any
entity controlling, controlled by, or under common control with registrant's
investment adviser for any other services directly related to the operations and
financial reporting of registrant were $0 for the year ended April 30, 2003, and
$0 for the year ended April 30, 2004.
(e)For the period covered by this report, registrant's audit committee charter, adopted
in August 2003, provides that the audit committee (comprised of the independent
directors of registrant) is responsible for pre-approval of all auditing services
performed for the registrant. The audit committee reports to the Board of
Directors ("Board") regarding its approval of the engagement of the auditor and
the proposed fees for the engagement, and the majority of the Board (including
the members of the Board who are independent directors) must approve the auditor
at an in-person meeting. The audit committee also is responsible for
pre-approval (subject to the de minimus exceptions for non-audit services
described in Section 10A(i)(1)(B) of the Securities Exchange Act of 1934, as amended)
of all non-auditing services performed for the registrant or for any service
affiliate of registrant. Registrant's audit committee charter also permits a
designated member of the audit committee to pre-approve, between meetings, one or
more non-audit service projects, subject to ratification by the audit committee at
the next meeting of the audit committee. Registrant's audit committee pre-approved
all fees described above which PwC billed to registrant.
(f)Less than 50% of the hours billed by PwC for auditing services to registrant for
the fiscal year ended April 30, 2004, were for work performed by persons other
than full-time, permanent employees of PwC.
(g)The aggregate non-audit fees billed by PwC to registrant and to registrant's
investment adviser and any entity controlling, controlled by, or under common
control with registrant's investment adviser for the fiscal years ending April
30, 2003, and April 30, 2004, were $35,000 and $0.
(h)Registrant's audit committee has considered the non-audit services provided to
the registrant and registrant's investment adviser and any entity controlling,
controlled by, or under common control with registrant's investment adviser as
described above and determined that these services do not compromise PwC's
independence.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments.
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment
Companies
Not applicable.
Item 8. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated
Purchasers.
Not applicable.
Item 9. Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may
recommend nominees to registrant's board of trustees.
Item 10. Controls and Procedures
(a)(i) Except as noted below, registrant's principal executive and principal
financial officers, or persons performing similar functions, have concluded that
registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under
the Investment Company Act) are effective, based on their evaluation of these
controls and procedures as of a date within 90 days of the filing date of this
report. They note that this report is being filed late. The annual report for The
AAL U.S. Government Zero Coupon Target Fund, Series 2006, was prepared and
distributed to shareholders in a timely manner and should have been included in the
filing on Form N-CSR made on June 30, 2004, or in a separate Form N-CSR which was
timely filed. Registrant's principal executive and principal financial officers
further note they were provided with notice of the late filing promptly upon its
discovery and were advised that registrant has implemented procedures to provide
greater assurance that shareholder reports for all series of the registrant will be
filed timely in the future. Registrant's principal executive and principal financial
officers further note that registrant is implementing other processes to enhance the
effectiveness of its disclosure controls and procedures. With the implementation of
these new procedures, and an understanding of additional measures registrant intends
to take to further improve the effectiveness of its disclosure controls and
procedures, registrant's principal executive and principal financial officers have
concluded that registrant's disclosure controls and procedures are
effective.
(a)(ii) There were no changes in registrant's internal controls over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that
occurred during registrant's second fiscal half-year of the period covered by this
report that has materially affected, or is reasonably likely to materially affect,
registrant's internal control over financial reporting.
Item 11. Exhibits
(a) The code of ethics pursuant to Item 2 is attached hereto.
(b) Certifications pursuant to Rule 30a-2(a) and 30a-2(b) under the Investment Company
Act of 1940 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
Date: November 2, 2004 THRIVENT MUTUAL FUNDS
By: /s/ Pamela J. Moret
------------------------------
Pamela J. Moret
President
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, this report has been signed below by the following persons on behalf of
the registrant and in the capacities and on the dates indicated.
Date: November 2, 2004 By: /s/ Pamela J. Moret
------------------------------
Pamela J. Moret
President
Date: November 2, 2004 By: /s/ Gerard V. Vaillancourt
------------------------------
Gerard V. Vaillancourt
Assistant Treasurer
CERTIFICATION BY PRESIDENT
I, Pamela J. Moret, certify that:
1. I have reviewed this report on Form N-CSR of Thrivent Mutual Funds;
2. Based on my knowledge, this report does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements made, in light of
the circumstances under which such statements were made, not misleading with respect to
the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included
in this report, fairly present in all material respects the financial condition, results
of operations, changes in net assets, and cash flows (if the financial statements are
required to include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940) and internal control over financial reporting (as defined
in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls
and procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated subsidiaries, is
made known to us by others within those entities, particularly during the period in
which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of a date within 90 days prior to the filing
date of this report based on such evaluation; and
d) Disclosed in this report any change in the registrant's internal control over
financial reporting that occurred during the registrant's most recent fiscal
half-year (the registrant's second fiscal half-year in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to registrant's
auditors and the audit committee of the registrant's board of directors (or persons
performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of
internal controls over financial reporting which are reasonably likely to adversely
affect the registrant's ability to record, process, summarize, and report financial
information; and
b) Any fraud, whether or not material, that involves management or other employees who
have a significant role in the registrant's internal control over financial
reporting.
Date: November 2, 2004 /s/ Pamela J. Moret
-----------------------------------------
Pamela J. Moret
President
CERTIFICATION BY ASSISTANT TREASURER
I, Gerard V. Vaillancourt, certify that:
1. I have reviewed this report on Form N-CSR of Thrivent Mutual Funds;
2. Based on my knowledge, this report does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements made, in light of
the circumstances under which such statements were made, not misleading with respect to
the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included
in this report, fairly present in all material respects the financial condition, results
of operations, changes in net assets, and cash flows (if the financial statements are
required to include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940) and internal control over financial reporting (as defined
in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls
and procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated subsidiaries, is
made known to us by others within those entities, particularly during the period in
which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of a date within 90 days prior to the filing
date of this report based on such evaluation; and
d) Disclosed in this report any change in the registrant's internal control over
financial reporting that occurred during the registrant's most recent fiscal
half-year (the registrant's second fiscal half-year in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to registrant's
auditors and the audit committee of the registrant's board of directors (or persons
performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of
internal controls over financial reporting which are reasonably likely to adversely
affect the registrant's ability to record, process, summarize, and report financial
information; and
b) Any fraud, whether or not material, that involves management or other employees who
have a significant role in the registrant's internal control over financial
reporting.
Date: November 2, 2004 /s/ Gerard V. Vaillancourt
-----------------------------------------
Gerard V. Vaillancourt
Assistant Treasurer
CERTIFICATION UNDER SECTION 906 OF SARBANES-OXLEY ACT OF 2002
Name of Registrant: Thrivent Mutual Funds
In connection with the Report on Form N-CSR for the above-named issuer, the undersigned
hereby certify, to the best of her or his knowledge, that:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Issuer.
Date: November 2, 2004 /s/ Pamela J. Moret
-------------------------------------------
Pamela J. Moret
President
Date: November 2, 2004 /s/ Gerard V. Vaillancourt
---------------------------------------
Gerard V. Vaillancourt
Assistant Treasurer
