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   811-07917

Horace Mann Mutual Funds
(Exact name of registrant as specified in charter)

1 Horace Mann Plaza, Springfield, Il 62715
(Address of principal executive offices)

Christopher M. Fehr, President
1 Horace Mann Plaza, Springfield, Il 62715
(Name and address of agent for service)

Registrant's telephone number, including area code: 217-789-2500

Date of fiscal year end: 12/31

Date of reporting period: 06/30/03

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss 3507.

Item 1. Report to Stockholders.

Attached hereto is the semi-annual shareholder report transmitted to shareholders pursuant to Rule 30e-1 of the Investment Company Act of 1940, as amended.

Table of Contents

Letter from the Chairman . . . . . . . . . . . . . . . . . . . .	3
Investment adviser letter . . . . . . . . . . . . . . . . . . . . .	4
Financial statements . . . . . . . . . . . . . . . . . . . . . . . .	7

This report must be
preceded or accompanied
by a current prospectus.

(THIS PAGE INTENTIONALLY LEFT BLANK)

Dear Fellow Shareholders:

Stay the course. Be true to your investment strategy. Don't try to time the market.

While we know these are time-tested messages, we also realize that this advice may have been difficult to heed during the past few years as the market tested investors' resolve.

However, as the first half of 2003 comes to a close and you review your portfolio's performance, you can finally look past the less than stellar market performance from the past few years and see positive returns for the last quarter. If you endured the volatility we've seen in equity investments and stayed the course, you are probably in a better position than if you abandoned your plan when equity funds were at their lowest point. If you held true to your investment strategy and long-term outlook, you were able to tolerate the short-term weakness of the market and potentially benefit from purchasing more shares of equity funds when the prices were at their lowest.

While the market continues to fluctuate, we are pleased to see the current upward trend. Although we can't promise the positive returns we saw during the second quarter will continue, we can reinforce that, historically speaking, a long-term approach to investing has proven to be successful, and we see no reason why that should change.

Market Review

Taking a close look at the market, we saw investors open the year cautiously as global economic concerns continued to impact their decisions. Following a period of uncertainty with impending military action in Iraq, possible tax cuts and a shaky long-term economic outlook, investors returned to the market and have moved the domestic stock markets in a decidedly positive direction since March. Both the Wilshire 5000 Index and the S&P 500 Index have traded significantly higher during the year.

International markets rose in concert with domestic stock markets. Europe anchored the gains posted in the global markets. We also saw significant growth in the area of emerging markets.

Broad economic results continued to be disappointing, however there have been pockets of gradual recovery that economic experts have predicted. The Horace Mann Family of Funds generated solid returns during the period. The Small Cap Growth Fund handily outperformed its benchmark, posting a return of approximately 25 percent. The Income Fund almost doubled the return of its index, and the Income Fund's strong performance carried the Balanced Fund. The Equity Fund and the Socially Responsible Fund didn't quite measure up to their benchmarks, but they both posted double-digit positive returns. The International Equity Fund gained nearly 20 percent but also didn't perform to its benchmark. The Short-Term Investment Fund outpaced its benchmark.

Perspective

At Horace Mann Mutual Funds, we want you to know our funds are designed and managed to help you achieve your retirement goals. We are proud to work with you to help achieve long-term financial stability and well being for you and your family. As we move through the summer and look ahead to the coming school year, we look forward to continuing our service to you. From the entire Horace Mann family, we extend our appreciation for your continued business.

Sincerely,

George J. Zock Chairman Horace Mann Mutual Funds	Christopher M. Fehr President Horace Mann Mutual Funds

Horace Mann Mutual Funds      P.O. Box 4657     Springfield, Illinois     62708-4657
217-789-2500     www.horacemann.com 3

WILSHIRE ASSOCIATES
1299 Ocean Avenue,  Suite 700 Santa Monica,  CA 90401-1085
TEL 310.451.3051    FAX 310.458.0520    www.wilshire.com

To the Shareholders of the Horace Mann Mutual Funds:

With the first half of 2003 in the books, we are pleased to submit an encouraging report on the Horace Mann Mutual Funds. Investors adopted a wait-and-see approach through the first three months of the year as geo-political uncertainty captured headlines. When questions surrounding Iraq and the SARS epidemic, among other issues, were answered, domestic stock markets rallied. While the turn in the markets over the past six months was markedly positive, we continue to believe that keeping perspective on short-term market swings is critical for long-term investors. Short-term volatility is an expected and integral part of the way markets work, and long-term investors must exercise patience to attain their objectives. The Horace Mann Mutual Funds are managed to provide investors with an outstanding opportunity to save for retirement.

As we continue to work on your behalf, we appreciate your confidence in the Horace Mann Mutual Funds. We believe the funds are solid investment options that will provide you the opportunity for long-term capital growth. As advisers for the funds, we work diligently to ensure the funds provide appropriate long-term results.

Market Environment

During January and February, questions surrounding the geo-political issues such as the Iraqi conflict, continuing tensions in the Middle East, the SARS epidemic, rising oil prices and disappointing unemployment numbers created a difficult investment environment. It was not until March that the domestic markets began to trade higher.

Investors moderately preferred value stocks during the period, continuing to seek the perceived security that accompanies consistent earnings. Small capitalization stocks handily outperformed their large cap counterparts with a strong rally in low-priced stocks. All styles of domestic stocks posted double-digit gains over the period. Airline stocks bounced back after several consecutive difficult quarters, and home builders also posted impressive gains followed closely by HMOs, technology stocks and brokerage firms.

Bonds provided incremental gains to investors over the period, buoyed by strength in corporate securities. In June, the Federal Reserve lowered short-term interest rates to a 45-year low of 1 percent in an effort to restart the sluggish economy. Bonds providing a yield premium in excess of government issues advanced. The volatile high-yield bond sector rallied over the period, recouping some of the losses incurred over prior periods.

International equities traded up with U.S. equities. The dollar fell in value versus other global currencies. European Central Bank officials lowered interest rates stirring increased capital expenditure and sales growth. Japan managed to produce only a marginal gain as long-term economic concerns remain. Emerging markets posted impressive gains as renewed optimism about several markets pushed price levels higher.

Funds Results

All Horace Mann Mutual Funds posted strong returns during the first half of 2003. The three domestic equity funds and the international fund posted double-digit returns, led by the Small Cap Growth Fund's 24.5 percent return. Bond fund results were solid as well, as the Income Fund generated a healthy return of approximately 6.6 percent.

4

HORACE MANN MUTUAL FUNDS 2003 FUNDS SEMI-ANNUAL REPORT
(UNAUDITED)

Domestic Equities

The Equity Fund fell behind its benchmark in the first quarter as the stock market favored those companies with an earnings growth bias rather than those with stable earnings — the hallmark of the Equity Fund. Despite strong performance in the second quarter, the fund finished the semi-annual period behind its benchmark. Historically, due to its conservative, value-oriented approach, the fund has carried less exposure to volatile technology stocks than the S&P 500 Index. This underweight has been a key contributor to positive relative performance over the past three years. In a reversal from prior periods, these more speculative stocks rallied early in 2003. Bargain hunters sought these stocks with little regard for earnings and this more conservatively oriented fund lagged. Comprised of units of both the Equity and Income Funds, the Balanced Fund was negatively impacted by Equity Fund results. Interestingly, though, the factors that hurt the Equity Fund's performance were helpful to Income Fund results as lower credit quality rebounded in the bond market. More detail on Income Fund results is featured below.

The Socially Responsible Fund generated double-digit positive returns but underperformed its benchmark. Long-term performance for the fund continues to remain significantly positive. The fund benefited from its holdings in the financial sector, primarily in regional banks. The impact of the social screens used in the investment process was marginally positive.

The Small Cap Growth Fund was the highlight of the Horace Mann Mutual Funds during the first six months of the year. Stocks that were under pressure during prior periods experienced a sharp turnaround and the fund capitalized during this rebound. The biotechnology area provided particular strength to the fund's results.

International Equities

The International Equity Fund posted a strong return — recouping losses experienced in prior periods but underperforming its benchmark. Capital spending increased in Europe and the fund capitalized by holding cyclical names that performed well. The fund also benefited from its holdings in emerging markets, which, as a region, outperformed all other global markets.

Domestic Fixed Income

The Income Fund generated a dramatically positive relative return versus its benchmark. Recovering from a difficult credit environment, the fund has posted three consecutive strong quarters. The fund's overweight to corporate credits has been the key driver of performance, as securities that provide a spread over Treasuries have paced the market. Additionally, holdings in the high-yield sector significantly helped performance. The Short-Term Investment Fund performed in line with expectations, producing a positive return in excess of Treasury Bills.

Conclusion

Long-term investors were well rewarded in the first six months of 2003. As we monitor the volatile market, Wilshire continues to apply its time-tested process to add value in your retirement planning efforts. We believe investors that take on sensible risks within their portfolio will benefit in the long term.

Through a strong partnership with Horace Mann, we believe the Horace Mann family of funds provides you with an excellent selection of investment options to help you reach your financial goals. Thank you again for your confidence in the Horace Mann Mutual Funds.

Sincerely,

Michael P. O'Keeffe, CFA	Thomas M. Goodrum, Jr., CFA
Managing Director	Managing Director
Wilshire Associates Incorporated	Wilshire Associates Incorporated

5

(THIS PAGE INTENTIONALLY LEFT BLANK)

Semi-Annual Report
June 30, 2003
Horace Mann Mutual Funds
Equity Fund
Balanced Fund
Income Fund
Short-Term Investment Fund
Small Cap Growth Fund
International Equity Fund
Socially Responsible Fund
Board of Trustees
A. Thomas Arisman	Richard D. Lang
Roger A. Formisano	Harriet A. Russell
Richard A. Holt	George J. Zock, Chairman
Officers of the Funds
Christopher M. Fehr	Linda L. Sacco
President	Assistant Secretary
Bret A. Conklin	Elizabeth E. Arthur
Controller	Anti-Money Laundering Compliance Officer
Angela S. Christian	Diane M. Barnett
Treasurer	Tax Officer
Ann M. Caparrós
Secretary and
Code of Ethics Officer
Administrator	Investment Subadvisers
Horace Mann Investors, Inc.	Bernstein Investment Research and
1 Horace Mann Plaza	Management Unit of Alliance Capital
Springfield, IL 62715	Management, L.P.
	767 Fifth Avenue
Investment Adviser	New York, NY 10153
Wilshire Associates Incorporated
1299 Ocean Avenue	BlackRock Financial Management, Inc.
Santa Monica, CA 90401-1085	345 Park Avenue
	New York, NY 10154-0010
Custodian
State Street Bank and Trust Company	Mazama Capital Management
801 Pennsylvania Avenue	One SouthWest Columbia
Kansas City, MO 64105	Suite 1860
	Portland, OR 97258
Independent Auditors
KPMG LLP	Mellon Equity Associates, LLP
303 East Wacker Drive	500 Grant Street, Suite 4200
Chicago, IL 60601	Pittsburgh, PA 15258
	Oechsle International Advisors, LLC
	One International Place
	Boston, MA 02110
	Wellington Management Company, LLP
	75 State Street
	Boston, MA 02109
	Western Asset Management Company
	117 E. Colorado Blvd., Suite 600
	Pasadena, CA 91105
	Western Asset Management Limited
	155 Bishopsgate, London
	EC2M 3XG

7

HORACE MANN MUTUAL FUNDS 2003 FUNDS SEMI-ANNUAL REPORT
(UNAUDITED)

Financial Highlights

June 30, 2003

PER SHARE DATA

											Less Distribution From:
	Net Asset							Total Income
	Value		Net		Net Realized			(Loss) From			Net		Net
Period	Beginning		Investment		and Unrealized			Investment			Investment		Realized		Total
Ended	of Period		Income(1)		Gain (Loss)(1)			Operations(1)			Income		Gains		Distributions
EQUITY FUND
June 30, 2003(5, 6)	$	15.56	$	0.10	$	1.57		$	1.67		$	—	$	—	$	—
2002		19.57		0.21		(4.01	)		(3.80	)		0.21		—		0.21
2001		20.65		0.21		(1.08	)		(0.87	)		0.21		—		0.21
2000		21.92		0.21		(1.23	)		(1.02	)		0.25		—		0.25
1999		24.34		0.26		(0.91	)		(0.65	)		0.25		1.52		1.77
1998		25.66		0.41		1.51			1.92			0.41		2.83		3.24
BALANCED FUND(7)
June 30, 2003(5, 6)	$	14.52	$	—	$	1.36		$	1.36		$	—	$	—	$	—
2002		16.34		0.43		(1.79	)		(1.36	)		0.46		—		0.46
2001		16.76		0.65		(0.41	)		0.24			0.66		—		0.66
2000		17.27		0.58		(0.42	)		0.16			0.67		—		0.67
1999		18.90		0.62		(0.84	)		(0.22	)		0.63		0.78		1.41
1998		19.82		0.73		0.77			1.50			0.74		1.68		2.42
INCOME FUND
June 30, 2003(5, 6)	$	12.43	$	0.30	$	0.52		$	0.82		$	—	$	—	$	—
2002		12.30		0.69		0.42			1.11			0.57		0.41		0.98
2001		12.39		0.78		0.33			1.11			0.85		0.35		1.20
2000		12.24		0.82		0.27			1.09			0.94		—		0.94
1999		13.24		0.76		(0.97	)		(0.21	)		0.79		—		0.79
1998		13.00		0.78		0.27			1.05			0.69		0.12		0.81

1	The "Net Investment Income" per share and the "Net Realized and Unrealized Gain (Loss)" per share represent a proportionate share respective to the increase in net assets as presented in the Statement of Operations and are calculated using the average outstanding share balance for the year. Distributions from "Net Investment Income" and "Net Realized Gains" are based on actual outstanding shares on the ex-date.
2	The total return is determined by the ratio of ending net asset value to beginning net asset value, adjusted for reinvestment of dividends from net investment income and net realized capital gains.
3	If you are an annuity contract owner, the above total return does not reflect expenses that apply to the separate account or related policies. The inclusion of these charges would reduce the total return figures for all periods shown.

8 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

																Ratio to Average Net
RATIO/SUPPLEMENTAL DATA																Assets Before Waived &
																Reimbursed Expenses
							Ratio of			Ratio of
Net Asset					Net Assets		Expenses			Net Income			Portfolio						Ratio of Net
Value End		Total			End of Period		to Average			to Average			Turnover			Ratio of			Investment
of Period		Return(2,3)			(in thousands)		Net Assets(4)			Net Assets(4)			Rate			Expenses			Income
$	17.23		10.73	%	$	480,978		0.88	%		1.22	%		21.15	%		0.94	%		1.16	%
	15.56		(19.42	)		449,559		0.82			1.04			35.83			0.86			1.09
	19.57		(4.21	)		600,016		0.82			1.04			38.13			0.87			0.99
	20.65		(4.64	)		667,731		0.82			1.05			116.56			0.87			0.98
	21.92		(2.54	)		625,133		0.73			1.09			205.70			0.79			1.04
	24.34		7.64			670,731		0.51			1.57			59.63			—			—
$	15.88		9.37	%	$	253,369		(0.06	)%		(0.06	)%		3.50	%		(0.06	)%		(0.06	)%
	14.52		(8.32	)		240,562		0.04			2.77			13.20			0.04			2.77
	16.34		1.39			292,176		0.05			3.79			9.81			0.05			3.79
	16.76		0.93			314,728		0.06			3.38			120.51			0.07			3.37
	17.27		(1.11	)		402,539		0.75			3.30			155.53			0.77			3.28
	18.90		7.68			427,920		0.50			3.60			63.69			—			—
$	13.25		6.60	%	$	120,986		0.88	%		4.69	%		129.85	%		0.94	%		4.63	%
	12.43		9.02			114,935		0.85			5.41			315.70			0.90			5.36
	12.30		8.88			126,045		0.81			5.96			348.18			0.88			5.89
	12.39		8.89			137,184		0.88			7.02			422.38			0.92			6.98
	12.24		(1.57	)		13,175		0.99			5.83			33.09			1.03			5.79
	13.24		8.09			13,959		0.88			5.85			46.60			—			—

4	Ratios of Expenses and Net Income to Average Net Assets do not reflect commissions credits and earnings credits on cash balances.
5	The returns for the six month period ended June 30, 2003 are not annualized.
6	For periods less than one year, ratios have been annualized.
7	Effective January 19, 2000, the Balanced Fund began operating under a "fund of funds" structure. The ratio of expenses does not include expenses of the underlying funds.

9

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

Financial Highlights (concluded)

June 30, 2003

PER SHARE DATA

												Less Distribution From:
	Net Asset								Total Income
	Value		Net			Net Realized			(Loss) From			Net		Net
Period	Beginning		Investment			and Unrealized			Investment			Investment		Realized		Total
Ended	of Period		Income (Loss)(1)			Gain (Loss)(1)			Operations(1)			Income		Gains		Distributions
SHORT-TERM
INVESTMENT FUND
June 30, 2003(4, 5)	$	10.09	$	0.07		$	0.01		$	0.08		$	—	$	—	$	—
2002		10.08		0.18			(0.01	)		0.17			0.16		—		0.16
2001		9.92		0.39			0.12			0.51			0.33		0.02		0.35
2000		9.89		0.57			0.01			0.58			0.55		—		0.55
1999		9.98		0.47			0.01			0.48			0.56		0.01		0.57
1998		9.99		0.49			0.01			0.50			0.51		—		0.51
SMALL CAP
GROWTH FUND
June 30, 2003(4, 5)	$	7.43	$	(0.06	)	$	1.88		$	1.82		$	—	$	—	$	—
2002		12.15		(0.15	)		(4.57	)		(4.72	)		—		—		—
2001		17.31		(0.12	)		(5.04	)		(5.16	)		—		—		—
2000		19.76		(0.12	)		(2.03	)		(2.15	)		—		0.30		0.30
1999		12.38		(0.15	)		8.96			8.81			—		1.43		1.43
1998		11.70		(0.07	)		0.75			0.68			—		—		—
INTERNATIONAL
EQUITY FUND
June 30, 2003(4, 5)	$	8.30	$	0.06		$	0.54		$	0.60		$	—	$	—	$	—
2002		10.52		(0.01	)		(2.21	)		(2.22	)		—		—		—
2001		14.27		—			(3.75	)		(3.75	)		—		—		—
2000		17.52		0.03			(3.10	)		(3.07	)		—		0.18		0.18
1999		12.13		0.08			6.18			6.26			0.03		0.84		0.87
1998		10.27		0.11			1.84			1.95			0.09		—		0.09
SOCIALLY
RESPONSIBLE FUND
June 30, 2003(4, 5)	$	10.87	$	0.08		$	1.06		$	1.14		$	—	$	—	$	—
2002		12.75		0.16			(1.88	)		(1.72	)		0.16		—		0.16
2001		14.11		0.14			(1.17	)		(1.03	)		0.14		0.19		0.33
2000		13.81		0.13			1.07			1.20			0.14		0.76		0.90
1999		12.99		0.17			0.91			1.08			0.14		0.12		0.26
1998		12.10		0.27			0.91			1.18			0.17		0.12		0.29

1	The "Net Investment Income (Loss)" per share and the "Net Realized and Unrealized Gain (Loss)" per share represent a proportionate share respective to the increase in net assets as presented in the Statement of Operations and are calculated using the average outstanding share balance for the year. Distributions from "Net Investment Income" and "Net Realized Gains" are based on actual outstanding shares on the ex-date.
2	The total return is determined by the ratio of ending net asset value to beginning net asset value, adjusted for reinvestment of dividends from net investment income and net realized capital gains.
3	If you are an annuity contract owner, the above total return does not reflect expenses that apply to the separate account or related policies. The inclusion of these charges would reduce the total return figures for all periods shown.

10 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

RATIO/SUPPLEMENTAL DATA
																Ratio to Average Net
																Assets Before Waived &
																Reimbursed Expenses
							Ratio of			Ratio of
Net Asset					Net Assets		Expenses			Net Income			Portfolio						Ratio of
Value End		Total			End of Period		to Average			to Average			Turnover			Ratio of			Net Investment
of Period		Return(2,3)			(in thousands)		Net Assets(6)			Net Assets(6)			Rate			Expenses			Income
$	10.17		0.79	%	$	3,804		0.04	%		1.40	%		0.00	%		1.12	%		0.32	%
	10.09		1.69			4,183		0.33			1.76			0.00			1.16			0.93
	10.08		5.17			2,796		0.33			4.20			0.00			1.36			3.17
	9.92		5.81			1,982		0.49			5.62			0.00			1.81			4.30
	9.89		4.77			1,743		0.32			4.71			0.00			1.90			3.13
	9.98		4.97			1,331		0.69			4.78			0.00			2.59			2.88
$	9.25		24.50	%	$	43,470		1.77	%		(1.63	)%		75.60	%		1.89	%		(1.75	)%
	7.43		(38.85	)		34,768		1.66			(1.61	)		234.03			1.82			(1.77	)
	12.15		(29.81	)		58,437		1.54			1.14			318.83			1.71			1.31
	17.31		(10.84	)		83,597		1.50			(0.57	)		233.11			1.67			(0.74	)
	19.76		71.55			60,497		1.50			(1.03	)		172.20			1.64			(1.17	)
	12.38		5.81			28,655		1.11			(0.59	)		168.31			1.75			(1.23	)
$	8.90		7.23	%	$	28,539		1.69	%		1.42	%		28.99	%		1.75	%		1.36	%
	8.30		(21.10	)		26,286		1.58			(0.08	)		139.45			1.62			(0.12	)
	10.52		(26.35	)		33,544		1.53			0.00			103.42			1.54			(0.01	)
	14.27		(17.51	)		42,689		1.47			0.18			69.30			1.51			0.14
	17.52		51.83			26,403		1.30			0.53			77.74			1.69			0.14
	12.13		18.95			10,311		1.03			0.99			57.71			2.06			(0.04	)
$	12.01		10.49	%	$	64,214		1.06	%		1.46	%		11.63	%		1.26	%		1.26	%
	10.87		(13.49	)		58,960		0.99			1.35			27.34			1.19			1.15
	12.75		(7.30	)		71,644		1.04			1.05			141.96			1.20			0.89
	14.11		8.79			76,011		1.07			0.96			99.11			1.20			0.83
	13.81		8.39			59,533		1.00			1.28			60.46			1.12			1.16
	12.99		9.80			35,564		0.64			2.10			41.63			1.12			1.62

4	The returns for the six month period ended June 30, 2003 are not annualized.
5	For periods less than one year, ratios have been annualized.
6	Ratios of Expenses and Net Income to Average Net Assets do not reflect earnings credits on cash balances.

11

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments Equity Fund June 30, 2003		Number of	Market
			Shares	(000)
COMMON STOCK	Aerospace 1.63%
		Goodrich Corp.	28,000	$	588
		Lockheed Martin Corp.	46,200		2,198
		Raytheon Co.	31,000		1,018
		Rockwell Collins, Inc.	22,600		557
		United Technologies Corp.	49,200		3,485
					7,846
	Automotive 1.43%
		ArvinMeritor, Inc.	22,900		462
		Dana Corp.	82,200		950
		Genuine Parts Co.	56,600		1,812
		Honda Motor Ltd. (ADR)	41,800		796
		Lear Corp.*	30,200		1,390
		Magna International, Inc. - A	11,400		767
		Phelps Dodge Corp.*	18,900		725
					6,902
	Banks & Financial Services 21.23%
		Affiliated Managers Group, Inc.*	9,200		561
		AmSouth Bancorporation	83,800		1,830
		Bank of America Corp.	157,300		12,431
		Bank One Corp.	168,500		6,265
		Bear Stearns Companies, Inc.	20,600		1,492
		Charter One Financial, Inc.	28,675		894
		Citigroup, Inc.	373,281		15,976
		Commerce Bancshares, Inc.	10,300		382
		Countrywide Financial Corp.	15,800		1,099
		Doral Financial Corp.	12,900		576
		E*Trade Group, Inc.*	52,900		450
		Federal Home Loan Mortgage Corp.	48,000		2,437
		Federal National Mortgage Association	69,200		4,667
		First Tennessee National Corp.	27,400		1,203
		FleetBoston Financial Corp.	83,401		2,478
		Golden West Financial Corp.	23,600		1,888
		Goldman Sachs Group, Inc.	60,800		5,092
		Greenpoint Financial Corp.	22,300		1,136
		Hibernia Corp. - A	35,100		637
		J.P. Morgan Chase & Co.	97,440		3,331
		KeyCorp	81,300		2,054
		Lehman Brothers Holdings, Inc.	23,500		1,562
		Marshall & Ilsley Corp.	20,400		624
		MBNA Corp.	19,100		398
		Merrill Lynch & Company, Inc.	91,300		4,262
		Morgan Stanley Dean Witter & Co.	47,200		2,018
		National City Corp.	65,300		2,136
		New Century Financial Corp.	11,100		485
		Regions Financial Corp.	48,500		1,638
		SouthTrust Corp.	36,900		1,004
		State Street Corp.	27,400		1,080
		U.S. Bancorp	191,111		4,682
		Union Planters Corp.	10,700		332
		UnionBanCal Corp.	9,400		389
		Wachovia Corp.	166,100		6,637
		Washington Mutual, Inc.	94,600		3,907
		Wells Fargo & Co.	80,600		4,062
					102,095

12 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued) Equity Fund
	June 30, 2003
			Number of	Market
			Shares	(000)
COMMON STOCK	Business Machines 2.87%
(continued)		Dell Computer Corp.*	18,000	$	575
		Hewlett-Packard Co.	324,316		6,908
		International Business Machines Corp.	62,200		5,132
		Lexmark International, Inc.* - A	6,600		467
		Storage Technology Corp.*	28,700		739
					13,821
	Business Services 1.27%
		Accenture Ltd.*- A	85,200		1,541
		Automatic Data Processing, Inc.	37,700		1,277
		ITT Educational Services, Inc.*	27,800		813
		Omnicom Group, Inc.	34,400		2,466
					6,097
	Chemicals 2.32%
		Cabot Corp.	27,500		789
		Dow Chemical Co.	51,498		1,594
		Du Pont (E.I.) de Nemours & Co.	128,600		5,355
		Eastman Chemical Co.	38,800		1,229
		Lubrizol Corp.	22,400		694
		Monsanto Co.	32,700		708
		PPG Industries, Inc.	15,900		807
					11,176
	Communication Equipment & Services 6.51%
		ADC Telecommunications, Inc.*	221,600		516
		Advanced Fibre Communications, Inc.*	19,200		312
		Analog Devices, Inc.*	24,500		853
		AT&T Corp.	133,200		2,564
		AT&T Wireless Services, Inc.*	172,600		1,417
		BellSouth Corp.	102,200		2,722
		BCE, Inc.	23,600		545
		Corning, Inc.*	207,000		1,530
		Nokia Corp. (ADR)	41,600		683
		Nortel Networks Corp.*	564,100		1,523
		PanAmSat Corp.*	38,600		711
		QUALCOMM, Inc.	45,500		1,627
		Qwest Communications International, Inc.*	294,500		1,408
		SBC Communications, Inc.	171,500		4,382
		Scientific-Atlanta, Inc.	44,500		1,061
		Sprint FON Group	90,600		1,304
		Sprint PCS Group*	184,400		1,060
		Tellabs, Inc.*	130,000		859
		Verizon Communications, Inc.	141,658		5,588
		Vodafone Group PLC (ADR)	32,000		629
					31,294
	Computer Software & Services 5.04%
		Adaptec, Inc.*	34,600		268
		Check Point Software Technologies Ltd.*	15,800		309
		Cisco Systems, Inc.*	315,600		5,217
		Cognizant Technology Solutions Corp.*	22,772		555
		EMC Corp.*	139,700		1,463
		First Data Corp.	17,000		704
		GTECH Holdings Corp.	20,500		772
		Ingram Micro, Inc.* - A	66,300		729
		Microsoft Corp.	449,700		11,517
		Oracle Corp.*	147,500		1,770
		Quantum Corp.*	95,300		386
		Tech Data Corp.*	21,400		572
					24,262

See notes to the financial statements. 13

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued) Equity Fund June 30, 2003
			Number of	Market
			Shares	(000)
COMMON STOCK	Construction 0.14%
(continued)		Fluor Corp.	11,200	$	377
		KB Home	4,500		279
					656
	Consumer Products 4.12%
		Altria Group, Inc.	161,500		7,339
		Archer Daniels Midland Co.	99,400		1,279
		ConAgra Foods, Inc.	75,600		1,784
		Crown Holdings, Inc.*	54,300		388
		Gillette Co. (The)	55,100		1,756
		Masco Corp.	54,500		1,300
		Owens-Illinois, Inc.*	61,500		847
		Procter & Gamble Co. (The)	40,500		3,612
		UST, Inc.	32,700		1,145
		York International Corp.	15,500		363
					19,813
	Electronic Equipment & Services 3.22%
		Altera Corp.*	33,900		556
		American Power Conversion Corp.	54,200		845
		Applied Materials, Inc.*	105,200		1,668
		Arrow Electronics, Inc.*	40,300		614
		Avnet, Inc.*	47,900		607
		Cooper Industries, Ltd. - A	36,100		1,490
		Intel Corp.	271,000		5,626
		ITT Industries, Inc.	14,600		956
		Motorola, Inc.	35,100		331
		Qlogic Corp.*	17,800		854
		Rockwell Automation, Inc.	30,300		722
		Sanmina-SCI Corp.*	24,100		152
		Solectron Corp.*	100,800		377
		Thermo Electron Corp.*	17,100		359
		Thomas & Betts Corp.*	23,700		342
					15,499
	Energy 6.95%
		Anadarko Petroleum Corp.	16,000		712
		Apache Corp.	12,700		826
		Ashland, Inc.	17,700		543
		ChevronTexaco Corp.	107,588		7,768
		ConocoPhillips	73,200		4,011
		Equitable Resources, Inc.	17,400		709
		Exxon Corp.	262,100		9,412
		Halliburton Co.	41,100		945
		Marathon Oil Corp.	74,400		1,960
		Noble Corp.*	24,100		827
		Occidental Petroleum Corp.	50,000		1,678
		Schlumberger Ltd.	37,900		1,803
		Valero Energy Corp.	45,000		1,635
		Varco International, Inc.*	30,000		588
					33,417
	Food & Beverage 2.35%
		Coca-Cola Co.	93,800		4,353
		Fresh Del Monte Produce, Inc.	15,700		403
		General Mills, Inc.	40,800		1,934
		Kraft Foods, Inc. - A	10,000		326
		McDonald's Corp.	34,200		754

14 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued) Equity Fund June 30, 2003
			Number of	Market
			Shares	(000)
COMMON STOCK		PepsiCo, Inc.	74,400	$	3,311
(continued)		Sara Lee Corp.	12,500		235
					11,316
	Health Care & Pharmaceuticals 9.04%
		Abbott Laboratories	156,400		6,844
		Amgen, Inc.*	35,900		2,405
		Bristol-Myers Squibb Co.	22,400		608
		Cardinal Health, Inc.	27,600		1,775
		Eli Lilly & Co.	50,400		3,476
		Genzyme General Division*	32,600		1,363
		GlaxoSmithKline PLC (ADR)	25,100		1,018
		Guidant Corp.	22,200		985
		ICM Pharmaceuticals, Inc.	46,400		778
		IDEC Pharmaceuticals Corp.*	26,900		915
		Johnson & Johnson	59,800		3,092
		Medtronic, Inc.	7,600		365
		Merck & Company, Inc.	42,200		2,555
		Pfizer, Inc.	365,350		12,477
		Schering-Plough Corp.	56,300		1,047
		Wyeth	82,600		3,762
					43,465
	Insurance 6.99%
		ACE Ltd.	19,400		665
		Aetna, Inc.	20,200		1,216
		American International Group, Inc.	166,325		9,178
		Amerus Group Co.	14,300		403
		Berkshire Hathaway, Inc.* - A	33		2,393
		Chubb Corp.	31,300		1,878
		CIGNA Corp.	26,200		1,230
		Hartford Financial Services Group, Inc.	27,700		1,395
		Health Net, Inc.*	32,300		1,064
		Humana, Inc.*	66,200		1,000
		Marsh & McLennan Companies, Inc.	34,800		1,777
		MetLife, Inc.	32,900		932
		Montpelier RE Holdings Ltd.*	13,500		427
		Old Republic International Corp.	25,000		857
		Oxford Health Plans, Inc.*	33,000		1,387
		PartnerRe Ltd.	7,600		388
		Principal Financial Group, Inc.	18,300		590
		RenaissanceRe Holdings Ltd.	25,000		1,138
		St. Paul Companies, Inc.	21,200		774
		Torchmark Corp.	48,900		1,822
		Travelers Property Casualty Corp. - A	3,191		51
		Travelers Property Casualty Corp. - B	99,456		1,568
		UnumProvident Corp.	71,600		960
		XL Capital Ltd. - A	6,400		531
					33,624
	Manufacturing (Diversified) 4.24%
		3M Co.	8,000		1,032
		Bemis Co., Inc.	13,000		608
		Black & Decker Corp.	23,400		1,017
		Caterpillar, Inc.	38,100		2,121
		General Electric Co.	353,200		10,130
		Illinois Tool Works, Inc.	15,000		988
		Leggett & Platt, Inc.	80,100		1,642
		Parker Hannifin Corp.	12,300		516

See notes to the financial statements. 15

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued) Equity Fund June 30, 2003
			Number of	Market
			Shares	(000)
COMMON STOCK		Pentair, Inc.	14,400	$	562
(continued)		Tyco International Ltd.	93,100		1,767
	20,383
	Media & Media Services 4.46%
		AOL-Time Warner, Inc.*	424,000		6,822
		Comcast Corp.* - A Special	102,688		3,099
		Comcast Corp.* - A	60,900		1,756
		Entercom Communications Corp.*	13,100		642
		Fox Entertainment Group, Inc.* - A	48,000		1,381
		Gannett Company, Inc.	9,200		707
		Tribune Co.	20,200		976
		Viacom, Inc.* - B	113,381		4,950
		Walt Disney Co. (The)	31,000		612
		Westwood One, Inc.*	14,300		485
					21,430
	Metals & Mining 0.41%
		Alcoa, Inc.	76,800		1,958
	Paper & Forest Products 1.13%
		International Paper Co.	43,900		1,569
		MeadWestvaco Corp.	68,967		1,703
		Rayonier, Inc.	14,100		465
		Smurfit-Stone Container Corp.*	89,100		1,159
		Sonoco Products Co.	22,000		528
					5,424
	Railroad & Shipping 1.25%
		Burlington Northern Santa Fe Corp.	73,300		2,085
		CSX Corp.	61,700		1,857
		Norfolk Southern Corp.	90,400		1,736
		Union Pacific Corp.	5,300		308
					5,986
	Real Estate 0.12%
		General Growth Properties, Inc.	9,800		612
	Retail & Apparel 6.40%
		Bed Bath & Beyond, Inc.*	8,400		326
		Coach, Inc.*	14,800		736
		Columbia Sportswear Co.*	13,800		709
		CVS Corp.	101,300		2,839
		Federated Department Stores, Inc.	71,000		2,616
		Gap, Inc. (The)	57,600		1,081
		Home Depot, Inc.	110,800		3,670
		Limited Brands, Inc.	63,700		987
		May Department Stores Co. (The)	25,200		561
		Nike, Inc. - B	21,100		1,129
		Ross Stores, Inc.	10,300		440
		Safeway, Inc.*	94,100		1,925
		Sears, Roebuck and Co.	44,900		1,510
		Sherwin-Williams Co.	32,100		863
		SuperValu, Inc.	57,200		1,220
		Talbots, Inc.	14,800		436
		Target Corp.	39,700		1,502
		VF Corp.	48,400		1,644
		Wal-Mart Stores, Inc.	122,800		6,591
					30,785

16 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued) Equity Fund June 30, 2003
			Number of	Market
			Shares	(000)
COMMON STOCK	Technology 0.69%
(concluded)		Applied Biosystems Group	31,600	$	601
		NVIDIA Corp.*	31,900		734
		National Semiconductor Corp.*	33,500		661
		Texas Instruments, Inc.	74,200		1,306
					3,302
	Transportation 1.04%
		FedEx Corp.	28,300		1,755
		United Parcel Service, Inc. - B	51,200		3,261
					5,016
	Utilities 3.69%
		Ameren Corp.*	24,300		1,072
		American Electric Power, Inc.	56,220		1,677
		Cinergy Corp.	54,100		1,990
		Consolidated Edison, Inc.	22,000		952
		Entergy Corp.	28,300		1,494
		Exelon Corp.	20,900		1,250
		FPL Group, Inc.	13,700		916
		PPL Corp.	57,900		2,490
		Public Service Enterprise Group	24,600		1,039
		Reliant Resources, Inc.*	62,400		383
		Sempra Energy Co.	33,200		947
		Southern Company	37,600		1,172
		Wisconsin Energy Corp.	82,400		2,390
					17,772
	Waste Management 0.43%
		Republic Services, Inc.*	27,000		612
		Waste Management, Inc.	60,100		1,448
					2,060
	Total Common Stock 98.97%				476,011
		(Cost $497,629)

See notes to the financial statements. 17

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (concluded) Equity Fund June 30, 2003
			Rate	Maturity Date	Principal Amount (000)		Market   (000)
SHORT-TERM	State Street Bank - Repurchase Agreement
INVESTMENTS		dated 06/30/03 (secured by $2,494,
		US Treasury Note, 3.625%, 03/31/04)	0.40%	07/01/03	$	2,441	$	2,441
	State Street Bank - Repurchase Agreement
		dated 06/30/03 (secured by $1,589,
		US Treasury Note, 3.625%, 03/31/04)	0.40%	07/01/03		1,553		1,553
	Swiss Bank - Repurchase Agreement
		dated 06/30/03 (secured by $506,
		US Treasury Bond, 6.00%, 02/15/26)	1.10%	07/01/03		423		423
	Total Short-Term Investments 0.92%							4,417
		(Cost $4,417)
	Total Investments 99.89%							480,428
		(Cost $502,046)
	Cash and Other Assets in
		Excess of Liabilities 0.11%						550
	Net Assets 100.00%						$	480,978
	*	Non-income producing during the six months ended June 30, 2003 as this security did not pay dividends.

18 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments
	Balanced Fund
	June 30, 2003
			Number of	Market
			Shares	(000)
INVESTMENTS	Horace Mann Equity Fund*		8,947,566	$	154,166
	Horace Mann Income Fund*		7,492,047		99,270
	Total Investments 100.03%				253,436
		(Cost $271,533)
	Liabilities in Excess of
		Cash and Other Assets (0.03%)			(67)
	Net Assets 100.00%			$	253,369
	*	Affiliated Funds

See notes to the financial statements. 19

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments Income Fund
	June 30, 2003
			Rate	Maturity Date	Principal Amount (000)		Market (000)
U.S. AND FOREIGN GOVERNMENT AND AGENCY OBLIGATIONS	U.S. Treasury Bonds/Notes 5.54%
		U.S. Treasury Note	3.63%	05/15/13	$	310	$	312
		U.S. Treasury Bond-STRIPS(a)	5.05%	11/15/27		800		237
		U.S. Treasury Bond	3.63%	04/15/28		568		693
		U.S. Treasury Bond	3.88%	04/15/29		4,014		5,121
		U.S. Treasury Bond	5.38%	02/15/31		20		23
		U.S. Treasury Bond	3.38%	04/15/32		259		313
								6,699
	U.S. Government Agencies 1.93%
		Federal Home Loan Banks	5.93%	04/09/08		100		115
		Federal National Mortgage Association	6.32%	03/16/09		150		156
			5.38%	11/15/11		40		45
			6.25%	07/15/32		720		847
		Financing Corp. FICO Strip(a)	5.12%	04/05/19		130		59
		Tennessee Valley Authority	7.13%	05/01/30		850		1,108
								2,330
	Collateralized Mortgage Obligation 1.99%
		Federal Home Loan Mortgage Association	5.00%	12/31/99		2,200		2,235
		Federal National Mortgage Association	6.02%	09/25/28		177		178
								2,413
	Mortgage-Backed Securities 23.91%
		(U.S.Government Agencies)
		FNMA Pool # 001466	8.75%	02/01/10		45		48
		FNMA Pool # 313839	6.50%	11/01/12		165		173
		FNMA Pool # 291765	8.00%	08/01/14		45		49
		FNMA Pool # 291947	8.00%	08/01/14		25		28
		FNMA Pool # 288481	8.50%	09/01/14		68		74
		FNMA Pool # 286320	8.00%	10/01/14		5		6
		FNMA Pool # 302622	8.50%	01/01/15		12		13
		FNMA Pool # 250282	8.50%	03/01/15		48		53
		FNMA Pool # 040741	8.00%	01/01/17		10		11
		FNMA Pool # 046122	7.75%	04/01/17		42		45
		FNMA Pool # 251818	6.00%	06/01/18		349		364
		FNMA Pool # 440735	6.00%	12/01/18		30		31
		FNMA Pool # 481440	6.00%	01/01/19		50		52
		FNMA Pool # 323871	7.00%	08/01/19		94		99
		FNMA Pool # 050650	7.50%	10/01/22		54		58
		FNMA Pool # 248213	7.50%	07/01/23		31		33
		FNMA Pool # 459795	6.50%	06/01/29		547		571
		FNMA Pool # 499946	6.50%	07/01/29		434		453
		FNMA Pool # 505728	6.50%	07/01/29		330		345
		FNMA Pool # 506602	6.50%	07/01/29		370		387
		FNMA Pool # 511876	6.50%	08/01/29		306		319
		FNMA Pool # 479549	8.00%	08/01/29		204		220
		FNMA Pool # 528054	6.50%	02/01/30		179		186
		FNMA Pool # 532701	6.50%	03/01/30		294		307
		FNMA Pool # 533526	8.00%	03/01/30		219		236
		FNMA Pool # 534065	8.50%	03/01/30		121		130
		FNMA Pool # 532514	7.00%	04/01/30		135		142
		FNMA Pool # 528068	7.50%	04/01/30		414		440
		FNMA Pool # 528300	7.50%	04/01/30		226		240
		FNMA Pool # 528303	7.50%	04/01/30		111		118
		FNMA Pool # 531331	7.50%	04/01/30		24		26
		FNMA Pool # 253184	8.00%	04/01/30		428		462

20 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued)
	Income Fund
	June 30, 2003
					Principal
				Maturity	Amount		Market
			Rate	Date	(000)		(000)
U.S. AND FOREIGN GOVERNMENT AND AGENCY OBLIGATIONS   (continued)		FNMA Pool # 539931	7.00%	05/01/30	$	108	$	114
		FNMA TBA(b)	4.50%	12/01/99		1,000		1,020
		FNMA TBA(b)	5.00%	12/01/99		500		517
		FNMA TBA(b)	6.00%	12/01/99		500		522
		FNMA TBA(b)	7.00%	12/01/99		400		421
		FNMA TBA(b)	5.50%	12/31/99		4,700		4,881
								13,194
		GNMA Pool # 001263	9.50%	09/20/04		1		1
		GNMA Pool # 009277	8.25%	05/15/06		9		9
		GNMA Pool # 037987	11.50%	03/15/10		3		3
		GNMA Pool # 462428	6.50%	12/15/12		28		30
		GNMA Pool # 468711	6.50%	02/15/13		106		113
		GNMA Pool # 471267	6.50%	05/15/13		118		126
		GNMA Pool # 473566	6.50%	05/15/13		56		60
		GNMA Pool # 474007	6.50%	08/15/13		60		64
		GNMA Pool # 490679	6.50%	10/15/13		60		64
		GNMA Pool # 490339	6.00%	02/15/14		35		37
		GNMA Pool # 480547	6.50%	02/15/14		72		77
		GNMA Pool # 496550	6.00%	03/15/14		90		95
		GNMA Pool # 067223	12.00%	03/15/14		—		1
		GNMA Pool # 121126	12.00%	03/15/15		1		1
		GNMA Pool # 123992	12.00%	03/15/15		1		1
		GNMA Pool # 129540	12.00%	04/15/15		2		2
		GNMA Pool # 121873	12.00%	06/15/15		2		3
		GNMA Pool # 128893	12.00%	06/15/15		1		2
		GNMA Pool # 120458	12.00%	07/15/15		2		2
		GNMA Pool # 143348	12.00%	11/15/15		13		15
		GNMA Pool # 205376	9.50%	08/15/17		2		3
		GNMA Pool # 285789	8.50%	01/15/20		4		4
		GNMA Pool # 297558	8.50%	02/15/21		19		21
		GNMA Pool # 302933	8.50%	06/15/21		9		10
		GNMA Pool # 310762	8.50%	08/15/21		3		4
		GNMA Pool # 001828	8.00%	05/20/22		31		33
		GNMA Pool # 341672	7.50%	01/15/23		141		151
		GNMA Pool # 353245	8.50%	04/15/23		13		14
		GNMA Pool # 337404	7.50%	05/15/23		5		5
		GNMA Pool # 348075	7.50%	05/15/23		74		79
		GNMA Pool # 348689	7.50%	05/15/23		39		42
		GNMA Pool # 354587	7.50%	05/15/23		4		4
		GNMA Pool # 356357	7.50%	05/15/23		5		5
		GNMA Pool # 348708	7.50%	06/15/23		34		37
		GNMA Pool # 350600	7.50%	06/15/23		34		37
		GNMA Pool # 354603	7.50%	06/15/23		68		73
		GNMA Pool # 355688	7.50%	06/15/23		6		6
		GNMA Pool # 365786	7.50%	08/15/23		111		119
		GNMA Pool # 315834	7.50%	09/15/23		13		14
		GNMA Pool # 334720	7.50%	09/15/23		32		34
		GNMA Pool # 353144	7.50%	09/15/23		20		21
		GNMA Pool # 335289	7.50%	11/15/23		35		37
		GNMA Pool # 370378	7.50%	11/15/23		86		92
		GNMA Pool # 376352	7.50%	12/15/23		45		48
		GNMA Pool # 780598	7.50%	12/15/23		375		401
		GNMA Pool # 462622	6.50%	03/15/28		45		47
		GNMA Pool # 443559	6.50%	04/15/28		74		78
		GNMA Pool # 462200	6.50%	06/15/28		111		117
		GNMA Pool # 423880	6.50%	07/15/28		39		41
		GNMA Pool # 468090	6.50%	07/15/28		39		41

See notes to the financial statements. 21

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued)
	Income Fund
	June 30, 2003
					Principal
				Maturity	Amount		Market
			Rate	Date	(000)		(000)
U.S. AND FOREIGN GOVERNMENT AND AGENCY OBLIGATIONS   (concluded)		GNMA Pool # 482048	6.50%	08/15/28	$	60	$	63
		GNMA Pool # 484290	6.50%	08/15/28		17		18
		GNMA Pool # 466700	6.50%	08/15/28		50		53
		GNMA Pool # 486470	6.50%	08/15/28		66		69
		GNMA Pool # 482144	7.00%	08/15/28		7		7
		GNMA Pool # 486516	6.50%	09/15/28		63		66
		GNMA Pool # 469617	6.50%	10/15/28		10		10
		GNMA Pool # 505993	7.50%	10/15/29		39		41
		GNMA Pool # 508888	7.50%	10/15/29		152		162
		GNMA Pool # 502862	7.50%	11/15/29		30		32
		GNMA Pool # 530399	7.50%	06/15/30		57		61
		GNMA Pool # 781340	6.50%	10/15/31		207		218
		GNMA TBA(b)	6.00%	12/15/99		730		764
		GNMA TBA(b)	6.50%	12/15/99		6,900		7,228
		GNMA TBA(b)	5.50%	12/31/99		4,400		4,620
								15,736
	Foreign Government and Agency
		Securities 14.32%
		Brazil (Republic of)	2.63%	04/15/09		141		119
		Brazil (Republic of)	14.50%	10/15/09		180		208
		Brazil (Republic of)	12.00%	04/15/10		130		135
		Brazil (Republic of)	2.63%	04/15/12		260		195
		Brazil (Republic of)	3.13%	04/15/12		70		53
		Brazil (Republic of)	8.00%	04/15/14		782		682
		Brazil (Republic of)(c)	8.00%	04/15/14		37		32
		Brazil (Republic of)	11.00%	08/17/40		279		255
		Bulgaria (Republic of)	8.25%	01/15/15		394		465
		Canadian Government	5.75%	06/01/29		532		429
		Colombia (Republic of)	10.50%	07/09/10		80		92
		Colombia (Republic of)	11.75%	02/25/20		230		286
		Germany (Republic of)	3.75%	01/04/09		2,200		2,613
		Germany (Republic of)	5.25%	01/04/11		476		609
		Germany (Republic of)	5.00%	01/04/12		1,605		2,021
		Germany (Republic of)	5.50%	01/04/31		1,490		1,911
		Italy (Republic of)	6.00%	05/01/31		1,000		1,366
		Mexico United Mexican States	8.38%	01/14/11		515		617
		Mexico United Mexican States	11.50%	05/15/26		1,240		1,849
		Ontario Providence of Canada	6.50%	03/08/29		270		227
		Panama (Republic of)	9.63%	02/08/11		50		58
		Panama (Republic of)	9.38%	07/23/12		260		302
		Panama (Republic of)	10.75%	05/15/20		90		112
		Peru (Republic of)(c)	4.50%	03/07/17		514		424
		Philippines (Republic of)	9.88%	01/15/19		355		392
		Philippines (Republic of)	10.63%	03/16/25		10		12
		Quebec Providence of Canada	7.13%	02/09/24		410		515
		Quebec Providence of Canada	7.50%	09/15/29		340		453
		Quebec-Hydro	6.30%	05/11/11		330		388
		Russian Federation	8.25%	03/31/10		50		58
		Russian Federation(c)	5.00%	03/31/30		460		446
								17,324
	Total U.S. and Foreign Government and
		Agency Obligations 47.69%						57,696
		(Cost $52,488)

22 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued)
	Income Fund
	June 30, 2003
						Principal
				Maturity	Amount		Market
			Rate	Date	(000)		(000)
U.S. AND FOREIGN CORPORATE BONDS/NOTES	Banks & Financial Services 10.22%
		Associates Corp. of North America	7.95%	02/15/10	$	55	$	66
		Banc One Corp.	9.88%	03/01/09		75		99
		Bank One Capital	8.75%	09/01/30		400		549
		CIT Holdings Group, Inc.	6.50%	02/07/06		210		230
		Credit Suisse First Boston USA	4.63%	01/15/08		220		235
		Ford Motor Credit Co.	7.38%	10/28/09		200		210
		Ford Motor Credit Co.	7.38%	02/01/11		790		817
		Fuji JGB Investment, LLC(d)	9.87%	12/31/49		210		221
		General Electric Capital Corp.	8.85%	04/01/05		500		561
		General Electric Capital Corp.	8.70%	05/21/07		50		61
		General Motors Acceptance Corp.	6.13%	09/15/06		580		611
		General Motors Acceptance Corp.	7.25%	03/02/11		375		385
		Goldman Sachs Group, Inc.	6.60%	01/15/12		850		988
		Heller Financial, Inc.	8.00%	06/15/05		1,000		1,121
		Household Financial Corp.	6.40%	06/17/08		250		285
		Household Financial Corp.	6.50%	11/15/08		463		532
		Household Financial Corp.	7.00%	05/15/12		10		12
		Household Financial Corp.	6.38%	11/27/12		40		45
		IBJ Preferred Capital Co., LLC(d)	8.79%	12/29/49		360		362
		J.P. Morgan Chase & Co.	6.63%	03/15/12		160		175
		J.P. Morgan Chase & Co.	5.75%	01/02/13		460		531
		Lehman Brothers Holdings, Inc.	8.25%	06/15/07		510		609
		NCNB Corp.	10.20%	07/15/15		774		1,147
		SB Treasury Co.(c)(d)	9.40%	12/29/49		530		583
		UBS Preferred Funding Trust	8.62%	10/29/49		700		895
		US Bancorp	3.13%	03/15/08		170		171
		XL Capital Financial Europe, PLC	6.50%	01/15/12		330		378
		Zurich Capital Trust Co.(d)	8.38%	06/01/37		440		483
								12,362
	Industrial 16.91%
		ABITBI-Consolidated, Inc.	8.50%	08/29/03		18		18
		AGCO Corp.	9.50%	05/01/08		31		34
		Alliance Atlantis Communication, Inc.	13.00%	12/15/09		20		23
		Allied Waste North America, Inc.	7.63%	01/01/06		72		75
		Allied Waste North America, Inc.	8.88%	04/01/08		129		140
		American Axle & Manufacturing, Inc.	9.75%	03/01/09		52		56
		American Greetings Corp.	6.10%	08/01/28		11		11
		American Standard, Inc.	7.38%	04/15/05		52		55
		American Standard, Inc.	7.63%	02/15/10		15		17
		Anadarko Financial Co.	7.50%	05/01/31		320		402
		Anderson Exploration Ltd.	6.75%	03/15/11		20		23
		Anheuser Busch Companies, Inc.	6.50%	05/01/42		250		293
		AOL Time Warner, Inc.	6.88%	05/01/12		240		274
		AOL Time Warner, Inc.	7.70%	05/01/32		410		479
		Apache Corp.	6.25%	04/15/12		130		151
		ARMCO, Inc.	9.00%	09/15/07		138		121
		AT&T Corp.	8.00%	11/15/31		130		147
		Avis Group Holdings, Inc.	11.00%	05/01/09		62		70
		Ball Corp.	6.88%	12/15/12		12		13
		Beazer Homes USA, Inc.	8.38%	04/15/12		34		38
		BellSouth Corp.	7.88%	02/15/30		160		209
		Bio-Rad Laboratories, Inc.	11.63%	02/15/07		81		89
		Bristol Myers Squibb Co.	5.75%	10/01/11		270		300
		Chancellor Media Corp.	8.00%	11/01/08		25		29
		Chesapeake Energy Corp.	8.13%	04/01/11		11		12

See notes to the financial statements. 23

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued)
	Income Fund
	June 30, 2003
			Rate	Maturity Date	Principal Amount   (000)		Market (000)
U.S. AND FOREIGN CORPORATE BONDS/NOTES   (continued)		Chesapeake Energy Corp.	8.50%	03/15/12	$	29	$	31
		ChevronTexaco Capital Corp.	3.50%	09/17/07		100		104
		Columbia/HCA Healthcare Corp.	6.91%	06/15/05		20		21
		Columbia/HCA Healthcare Corp.	7.25%	05/20/08		52		57
		Comcast Corp.	6.50%	01/15/15		490		551
		Conoco Funding Co.	6.35%	10/15/11		250		292
		Conoco Funding Co.	7.25%	10/15/31		35		44
		Conoco, Inc.	6.95%	04/15/29		390		469
		ConocoPhillips, Inc.	4.75%	10/15/12		150		159
		Constellation Brands, Inc.	8.00%	02/15/08		88		97
		Coventry Health Care, Inc.	8.13%	02/15/12		42		46
		CSC Holdings, Inc.	7.25%	07/15/08		72		72
		CSC Holdings, Inc.	7.88%	02/15/18		16		16
		CSC Holdings, Inc.	7.63%	07/15/18		3		3
		Daimler Chrysler North America Holdings	7.40%	01/20/05		750		804
		Delta Airlines, Inc.	6.72%	01/02/23		132		143
		Devon Financing Corp.	7.95%	04/15/32		130		167
		Devon Financing Corp.	6.88%	09/30/11		110		129
		Du Pont (E.I.) de Nemours & Co.	8.13%	03/15/04		75		79
		Echostar DBS Corp.	9.13%	01/15/09		57		64
		Echostar DBS Corp.	9.38%	02/01/09		93		99
		Electronic Data Systems Corp.	7.45%	10/15/29		650		663
		Emmis Communications Corp.	8.13%	03/15/09		25		26
		FMC Corp.	10.25%	11/01/09		22		25
		Ford Motor Co.	8.90%	01/15/32		240		244
		Forest Oil Corp.	7.75%	05/01/14		70		73
		General Motors Corp.	8.38%	07/15/33		110		110
		General Motors Corp.	7.13%	07/15/13		20		20
		General Motors Corp.	8.25%	07/15/23		50		50
		Georgia Gulf Corp.	10.38%	11/01/07		5		5
		Georgia Pacific Corp.(d)	8.88%	02/01/10		18		20
		Georgia Pacific Corp.	8.13%	05/15/11		1		1
		Georgia Pacific Corp.	9.50%	12/01/11		20		22
		Georgia Pacific Corp.	7.70%	06/15/15		13		13
		Georgia Pacific Corp.	7.75%	11/15/29		9		8
		Georgia Pacific Corp.	8.88%	05/15/31		2		2
		Harrah's Operations, Inc.	7.88%	12/15/05		115		125
		Hasbro, Inc.	5.60%	11/01/05		61		63
		HCA/Healthcare Co.	7.13%	06/01/06		40		43
		HCA/Healthcare Co.	8.75%	09/01/10		79		92
		HMH Properties, Inc.	7.88%	08/01/08		50		51
		HMH Properties, Inc.	8.45%	12/01/08		8		8
		Host Marriott Corp.	9.25%	10/01/07		4		4
		IMC Global, Inc.	10.88%	06/01/08		37		38
		Insight Midwest LP	10.50%	11/01/10		64		70
		ITT Corp.	6.75%	11/15/05		6		6
		Kansas City Southern RY Co.	9.50%	10/01/08		23		26
		Kellogg Co.	6.60%	04/01/11		190		223
		L 3 Communications Corp.	7.63%	06/15/12		66		73
		Lamar Media Corp.	7.25%	01/01/13		25		27
		Lear Corp.	7.96%	05/15/05		4		4
		Lear Corp.	8.11%	05/15/09		65		74
		Lennar Corp.	9.95%	05/01/10		18		21
		Liberty Media Corp.	3.75%	02/15/30		200		124
		Lockheed Martin Corp.	8.50%	12/01/29		70		95
		Macdermid, Inc.	9.13%	07/15/11		42		47
		Manor Care, Inc.	7.50%	06/15/06		52		57

24 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued)
	Income Fund
	June 30, 2003
			Rate	Maturity Date	Principal Amount   (000)		Market (000)
U.S. AND FOREIGN CORPORATE BONDS/NOTES   (continued)		Manor Care, Inc.	8.00%	03/01/08	$	69	$	78
		MeadWestvaco Corp.	6.85%	04/01/12		170		196
		Mirage Resorts, Inc.	6.63%	02/01/05		56		58
		Mohegan Tribal Gaming Authority	8.13%	01/01/06		10		11
		Mohegan Tribal Gaming Authority	8.75%	01/01/09		42		45
		Mohegan Tribal Gaming Authority	8.00%	04/01/12		5		5
		Moore North American Finance, Inc.(d)	7.88%	01/15/11		11		11
		Nabisco, Inc.	7.55%	06/15/15		300		381
		News America Holdings, Inc.	8.00%	10/17/16		600		765
		Nextel Communications, Inc.	9.75%	10/31/07		200		207
		Norampac, Inc.(d)	6.75%	06/01/13		32		34
		Norfolk Southern Corp.	6.20%	04/15/09		90		102
		Nortek, Inc.	9.13%	09/01/07		100		105
		Nortek, Inc.	8.88%	08/01/08		69		72
		Ocean Energy, Inc.	8.38%	07/01/08		40		42
		Omnicare, Inc.	8.13%	03/15/11		93		101
		Packaging Papers, Inc.	9.63%	04/01/09		50		55
		Panamsat Corp.	8.50%	02/01/12		63		68
		Park Place Entertainment Corp.	8.50%	11/15/06		22		24
		Park Place Entertainment Corp.	9.38%	02/15/07		8		9
		Park Place Entertainment Corp.(d)	7.00%	04/15/13		23		25
		Parker & Parsley Petroleum Co.	8.88%	04/15/05		2		2
		Parker & Parsley Petroleum Co.	8.25%	08/15/07		20		23
		Peabody Energy Corp.(d)	6.88%	03/15/13		58		61
		Penney, J.C. Corp., Inc.	8.00%	03/01/10		67		70
		Pepsi Bottling Group, Inc.	7.00%	03/01/29		350		426
		Philip Morris Companies, Inc.	7.20%	02/01/07		500		545
		Philip Morris Companies, Inc.	7.50%	07/16/09		500		537
		Phillips Petroleum Co.	7.00%	03/30/29		35		42
		Pioneer National Resource Co.	9.63%	04/01/10		16		20
		Pioneer National Resource Co.	7.50%	04/15/12		6		7
		Raytheon Co.	6.75%	08/15/07		200		226
		Reynolds (RJ) Tobacco Holdings, Inc.	7.75%	05/15/06		690		710
		Rogers Cable, Inc.(d)	6.25%	06/15/13		33		33
		Ryland Group, Inc.	8.00%	08/15/06		54		59
		Ryland Group, Inc.	8.25%	04/01/08		10		10
		Ryland Group, Inc.	5.38%	06/01/08		10		10
		Sara Lee Corp.	6.25%	09/15/11		360		417
		Schuler Homes	9.38%	07/15/09		90		102
		Shaw Communications, Inc.	8.25%	04/11/10		45		50
		Shaw Communications, Inc.	7.20%	12/15/11		24		26
		Smithfield Foods, Inc.	8.00%	10/15/09		44		47
		Sprint Capital Corp.	6.00%	01/15/07		50		54
		Sprint Capital Corp.	6.13%	11/15/08		290		315
		Sprint Capital Corp.	7.63%	01/30/11		40		46
		Sprint Capital Corp.	8.38%	03/15/12		220		263
		SPX Corp.	6.25%	06/15/11		49		50
		SPX Corp.	7.50%	01/01/13		25		27
		Station Casinos, Inc.	8.88%	12/01/08		150		158
		Target Corp.	5.88%	03/01/12		360		407
		Tenet Healthcare Corp.	6.38%	12/01/11		121		112
		Tenet Healthcare Corp.	7.38%	02/01/13		391		377
		Terex Corp.	8.88%	04/01/08		30		31
		Tricon Global Restaurants, Inc.	7.45%	05/15/05		33		36
		Tricon Global Restaurants, Inc.	8.50%	04/15/06		6		7
		Unilever Capital	7.13%	11/01/10		280		339

See notes to the financial statements. 25

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued)
	Income Fund
	June 30, 2003
			Rate	Maturity Date	Principal Amount   (000)		Market (000)
U.S. AND FOREIGN CORPORATE BONDS/NOTES   (continued)		Union Pacific Corp.	6.65%	01/15/11	$	100	$	116
		Union Pacific Corp.	6.63%	02/01/29		70		79
		Unisys Corp.	7.25%	01/15/05		76		79
		Ventras Realty Ltd.	8.75%	05/01/09		20		22
		Ventras Realty Ltd.	9.00%	05/01/12		10		11
		Verizon Global Funding Corp.	7.75%	12/01/30		50		63
		Verizon Global Funding Corp.	6.88%	06/15/12		40		47
		Verizon Global Funding Corp.	4.38%	06/01/13		140		140
		Viacom, Inc.	5.63%	08/15/12		160		178
		Vintage Petroleum, Inc.	7.88%	05/15/11		70		75
		Vintage Petroleum, Inc.(d)	8.25%	05/01/12		24		26
		Wal Mart Stores, Inc.	4.55%	05/01/13		180		187
		Waste Management, Inc.	6.88%	05/15/09		425		495
		Waste Management, Inc.	7.38%	05/15/29		500		590
		Western Oil Sands, Inc.	8.38%	05/01/12		47		52
		Westport Resource Corp.(d)	8.25%	11/01/11		14		15
		Weyerhaeuser Co.	6.75%	03/15/12		310		352
		Weyerhaeuser Co.	7.38%	03/15/32		310		356
		WMX Technologies, Inc.	7.00%	10/15/06		125		141
		WorldCom, Inc.(f)	8.25%	05/15/10		400		118
		WorldCom, Inc.(f)	7.50%	05/15/11		158		47
		WorldCom, Inc.(f)	8.25%	05/15/31		238		70
		XTO Energy, Inc.	7.50%	04/15/12		31		35
		XTO Energy, Inc.(d)	6.25%	04/15/13		50		53
								20,465
	Utilities 3.27%
		AES Corp.	8.50%	11/01/07		10		10
		AES Corp.	8.38%	08/15/07		39		37
		AES Corp.	8.75%	06/15/08		16		16
		AES Corp.	9.50%	06/01/09		58		58
		AES Corp.	9.38%	09/15/10		37		37
		AES Corp.	8.88%	02/15/11		19		18
		Calpine Corp.	7.88%	04/01/08		75		57
		Calpine Corp.	8.50%	02/15/11		125		94
		Cox Communications, Inc.	4.63%	06/01/13		60		60
		Dominion Resources, Inc.	4.13%	02/15/08		30		31
		Dominion Resources, Inc.	5.13%	12/15/09		80		86
		Dominion Resources, Inc.	5.70%	09/17/12		110		121
		Dynegy Holdings, Inc.	8.13%	03/15/05		44		43
		Dynegy Holdings, Inc.	8.75%	02/15/12		400		374
		El Paso Corp.	7.80%	08/01/31		990		834
		El Paso Corp.	7.75%	01/15/32		200		169
		El Paso Corp.(a)(e)	6.55%	02/28/21		1,050		459
		First Energy Corp.	6.45%	11/15/11		140		154
		First Energy Corp.	7.38%	11/15/31		350		392
		Oncor Electric Delivery Co.(d)	6.38%	01/15/15		50		57
		Orion Power Holdings, Inc.	12.00%	05/01/10		73		85
		Southern California Edison Co.(d)	8.00%	02/15/07		12		13
		TXU Energy Co.(d)	7.00%	03/15/13		50		55
		Williams Companies, Inc.	8.63%	06/01/10		63		66
		Williams Companies, Inc.	7.50%	01/15/31		100		95
		Williams Companies, Inc.	7.75%	06/15/31		80		77
		Williams Companies, Inc.	8.75%	03/15/32		440		458
								3,956

26 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued)
	Income Fund
	June 30, 2003
			Rate	Maturity Date	Principal Amount   (000)		Market (000)
U.S. AND FOREIGN CORPORATE BONDS/NOTES   (concluded)	Foreign 3.04%
		British Sky Broadcasting Group	6.88%	02/23/09	$	77	$	87
		Cascades, Inc.(d)	7.25%	02/15/13		38		40
		Cascades, Inc.(d)	7.25%	02/15/13		52		54
		Compagnie Generale de Geophysique	10.63%	11/15/07		30		31
		Flextronics International Ltd.	9.88%	07/01/10		51		56
		Fresenius Medical Care Capital Trust Pfd.	7.88%	02/12/08		1		70
		PDVSA Finance Ltd.	8.50%	11/16/12		280		256
		PDVSA Finance Ltd.	7.40%	08/15/16		20		16
		Royal Bank Scotland Group PLC	8.82%	03/31/49		300		336
		Spintab AB	5.75%	06/15/05		7,000		917
		Teekay Shipping Corp.	8.88%	07/15/11		117		128
		Tyco International Group	2.37%	07/30/03		40		40
		Tyco International Group	5.88%	11/01/04		20		21
		Tyco International Group	6.13%	11/01/08		40		42
		Tyco International Group	6.13%	01/15/09		20		21
		Tyco International Group	6.75%	02/15/11		10		11
		Tyco International Group	6.38%	10/15/11		430		454
		Tyco International Group	7.00%	06/15/28		418		422
		Tyco International Group	6.88%	01/15/29		672		679
								3,681
	Corporate Asset and Mortgage
		Backed Securities 8.38%
		Capital Lease Funding Securitization(d)	7.35%	06/22/24		778		862
		Conseco Financial Securitizations	6.99%	07/01/32		500		434
		Conseco Financial Securitizations(g)	8.50%	03/01/33		812		256
		Contimortgage Home Equity Loan	6.37%	02/25/26		1,036		1,046
		Credit Suisse First Boston Mortgage	2.24%	03/25/32		212		212
		Credit Suisse First Boston Mortgage	6.55%	01/17/35		675		769
		Deutsche Mortgage & Asset Rec Corp.	6.54%	06/15/31		1,200		1,355
		Green Tree Financial Corp.	9.15%	01/15/18		95		81
		Green Tree Financial Corp.	7.45%	09/15/28		1,500		1,553
		Green Tree Recreational Equipment	7.25%	03/15/29		151		36
		Holmes Financing PLC	2.17%	07/15/15		400		400
		Household Home Equity Loan Trust	2.15%	05/20/31		407		407
		Household Home Equity Loan Trust	2.21%	12/22/31		499		500
		Salomon Brothers Mortgage Services, Inc.	2.33%	01/25/30		22		23
		Salomon Brothers Mortgage Services, Inc.	2.14%	03/25/32		940		939
		Security National Mortgage Loan Trust(d)	8.80%	04/25/24		600		647
		Systems 2001 Asset Trust, LLC(d)	6.66%	09/15/13		548		617
								10,137
	Total Corporate Bonds/Notes 41.82%							50,601
		(Cost $45,701)

See notes to the financial statements. 27

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (concluded)
	Income Fund
	June 30, 2003
			Rate	Maturity Date	Principal Amount   (000)		Market (000)
SHORT-TERM INVESTMENTS	Federal Home Loan Bank Discount Notes(a)		1.04%	07/09/03	$	1,000	$	1,000
	Federal Home Loan Mortgage Discount
		Notes(a)	1.03%	07/30/03		2,500		2,498
			1.06%	07/01/03		400		400
	Kraft Foods, Inc. - Commercial Paper		2.08%	02/26/04		280		280
	Lehman Brothers - Repurchase Agreement
		dated 06/30/03 (secured by $9,625,
		Federal National Mortgage Corp.
		6.625%, 11/15/30)	1.15%	07/01/03		9,500		9,500
	Merrill Lynch - Repurchase Agreement
		dated 06/30/03 (secured by $20,402,
		Federal National Mortgage Corp.
		5.375%, 11/15/11)	1.22%	07/01/03		20,000		20,000
	Total Short-Term Investments 27.84%							33,678
		(Cost $33,678)
	Total Investments 117.35%							141,975
		(Cost $132,376)
	Foreign Currency 0.03%
		Euro Currency
		(Cost $35)						35
	Liabilities in Excess of
		Cash and Other Assets (17.38)%						(21,024)
	Net Assets 100.00%						$	120,986

(a)	The rate shown is the yield.
(b)	Securities purchased on a when issued or delayed delivery basis. At June 30, 2003, these securities amounted to $19,973.
(c)	Denotes a step bond: a zero coupon bond that converts to a fixed or variable rate at a future date. The rate reflects the security's yield to maturity at June 30, 2003.
(d)	Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold, in transactions exempt from registration to qualified institutional buyers. At June 30, 2003, these securities amounted to $4,272.
(e)	Debt obligation initially issued in a zero coupon form which converts to equity shares at a specified date. The rate reflects the security's yield to maturity at June 30, 2003.
(f)	Currently non-income producing. For debt securities, security is in default of principal and/or interest payments.
(g)	Illiquid

28 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments Short-Term Investment Fund June 30, 2003		Rate		Maturity Date	Principal Amount   (000)		Market(000)
U.S. CORPORATE SECURITIES		AT&T Corp.	7.50%		04/01/04	$	20	$	21
		Bell Atlantic, NJ Inc.	5.88%		02/01/04		30		31
		Campbell Soup Co.	4.75%		10/01/03		60		60
		Key Bank NA	1.44%		04/23/04		30		30
		Salomon, Inc.	6.88%		12/15/03		20		21
	Total U.S. Corporate
		Securities 4.29%							163
		(Cost $163)
U.S. AND FOREIGN GOVERNMENT AND AGENCY OBLIGATIONS	Federal Home Loan Bank		1.08%		07/11/03		100		100
			0.89%		07/18/03		125		125
			4.88%		05/14/04		200		206
	Federal Home Loan Mortgage Corp.		0.00%		07/01/03		10		10
			0.78%		07/03/03		5		5
			0.96%		07/08/03		100		100
			0.92%		07/11/03		15		15
			1.14%		07/15/03		10		10
			1.15%		07/25/03		30		30
			0.97%		07/30/03		100		100
			0.98%		08/14/03		136		136
			0.98%		08/25/03		200		200
			0.99%		11/05/03		250		249
			1.23%		12/04/03		100		99
	Federal National Mortgage Association		0.60%		07/02/03		45		45
			0.97%		07/07/03		100		100
			1.13%		07/16/03		40		40
			0.94%		07/23/03		395		395
			0.98%		07/28/03		71		71
			1.13%		07/30/03		50		50
			0.99%		08/11/03		15		15
			0.99%		08/13/03		5		5
			4.00%		08/15/03		220		221
			0.98%		10/22/03		150		149
	Italy (Republic of)		5.25%		01/16/04		100		102
	United States Treasury Bill		1.16%		08/21/03		125		125
	Total U.S. and Foreign Government
		and Agency Obligations 71.06%							2,703
		(Cost $2,694)
REPURCHASE AGREEMENTS	Lehman Brothers - Repurchase Agreement
		dated 06/30/03 (secured by $302,
		Tennessee Valley Authority,
		5.88%, 04/01/36)		1.15%	07/01/03		300		300
	Merrill Lynch - Repurchase Agreement
		dated 06/30/03 (secured by $307,
		Resolution Funding Strip,
		4.31%, 10/15/13)		1.22%	07/01/03		300		300
	Total Repurchase Agreements 15.77%								600
		(Cost $600)
	Total Investments 91.12%								3,466
		(Cost $3,457)
	Cash and Other Assets in
		Excess of Liabilities 8.88%							338
	Net Assets 100.00%							$	3,804

See notes to the financial statements. 29

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments Small Cap Growth Fund June 30, 2003			Number of Shares		Market(000)
COMMON STOCK	Aerospace 0.13%
			Integrated Defense Technologies, Inc.*	3,600	$	56
	Automotive 0.61%
		Navistar International Corp.*		1,900		62
		Oshkosh Truck Corp.		1,700		101
		Standard Motor Products, Inc.		9,100		101
						264
	Banks & Financial Services 6.21%
		Affiliated Managers Group, Inc.*		4,400		268
		BankAtlantic Bancorp, Inc. - A		4,400		52
		E*TRADE Group, Inc.*		108,400		921
		East West Bancorp Inc.		4,500		163
		Friedman, Billings, Ramsey Group		8,800		118
		Harbor Florida Bancshares, Inc.		2,200		53
		NetBank, Inc.		15,800		208
		Platinum Underwriters Holdings, Ltd.		8,700		236
		Saxon Capital, Inc.*		11,800		205
		Silicon Valley Bancshares*		6,100		145
		Sterling Financial Corp.*		3,540		86
		Umpqua Holdings Corp.		5,800		110
		W.P. Stewart & Co. Ltd.		3,400		76
		WestAmerica Bancorporation		1,400		60
						2,701
	Biotechnology 15.17%
		Abgenix, Inc.		15,507		163
		Albany Molecular Research, Inc.*		4,700		71
		Alkermes, Inc.*		62,900		676
		Angiotech Pharmaceuticals, Inc.*		15,822		645
		Antigenics, Inc.*		5,300		61
		AVI BioPharma, Inc.*		5,700		35
		Cell Genesys, Inc.*		49,228		425
		Cima Labs, Inc.*		1,858		50
		Corixa Corp.*		30,800		238
		Cubist Pharmaceuticals, Inc.*		53,400		569
		Dendreon Corp.*		34,200		203
		Edwards Lifesciences Corp.*		10,700		344
		EXACT Sciences Corp.*		13,700		150
		Genta, Inc.*		31,000		413
		Integra LifeSciences Holdings Corp.*		2,300		61
		Inveresk Research Group*		16,500		295
		ISIS Pharmaceuticals, Inc.*		53,100		286
		La Jolla Pharmaceutical Co.*		26,800		88
		Lexicon Genetics, Inc.*		20,000		134
		Medarex, Inc.*		8,600		57
		Medicis Pharmaceutical Corp. - A		5,670		322
		Paradigm Genetics, Inc.*		95,100		134
		Pharmaceutical Product Development, Inc.*		8,600		247
		Pharmaceutical Resources, Inc.*		969		47
		Taro Pharmaceutical Industries Ltd.* - A		1,027		56
		Telik, Inc.*		21,100		339
		Third Wave Technologies, Inc.*		41,600		187
		Tularik, Inc.*		29,900		297
						6,593

30 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued)
	Small Cap Growth Fund
	June 30, 2003
			Number of		Market
			Shares		(000)
COMMON STOCK	Business Services 7.15%
(continued)		AMN Healthcare Services, Inc.*		2,800	$	36
		Corporate Executive Board Co.* (The)		4,773		195
		DoubleClick, Inc.*		46,100		426
		FTI Consulting, Inc.*		5,500		137
		Gartner, Inc.* - A		30,600		232
		Heidrick & Struggles International, Inc.*		21,691		276
		Jacobs Engineering Group*		4,600		194
		Labor Ready, Inc.*		23,749		170
		MPS Group*		45,502		313
		Navigant Consulting, Inc.*		30,400		360
		NDCHealth Corp.		11,600		213
		Resources Connection, Inc.*		5,600		134
		Tetra Tech, Inc.*		15,000		258
		Watson Wyatt & Co.* - A		7,100		165
						3,109
	Capital Goods 3.06%
		Actuant Corp.*		2,200		104
		AGCO Corp.*		17,300		295
		Chicago Bridge & Iron Co. N.V.		3,800		86
		Herley Industries, Inc.*		16,600		282
		Maverick Tube Corp.*		16,100		308
		National-Oilwell, Inc.*		11,654		256
						1,331
	Chemicals 2.13%
		Agrium, Inc.		11,200		123
		Airgas, Inc.		10,800		181
		IMC Global, Inc.		6,000		40
		OM Group, Inc.*		24,700		364
		Symyx Technologies, Inc.*		13,500		220
						928
	Communication Equipment & Services 5.50%
		Advanced Fibre Communications, Inc.*		12,600		205
		Anaren, Inc.*		13,100		122
		Comverse Technology, Inc.*		4,100		62
		DSP Group, Inc.*		3,600		78
		Extreme Networks, Inc.*		8,400		44
		Foundry Networks, Inc.*		14,300		206
		Inet Technologies, Inc.*		11,600		116
		Polycom, Inc.*		87,782		1,217
		Powerwave Technologies, Inc.*		20,006		124
		SonicWALL, Inc.*		45,200		217
						2,391
	Computer Hardware & Peripherals 2.14%
		Identix, Inc.*		55,100		350
		Immersion Corp.*		75,888		140
		Pinnacle Systems, Inc.*		41,200		441
						931
	Computer Software & Services 15.01%
		ActivCard Corp.*		3,600		34
		Advent Software, Inc.*		11,000		186
		Autodesk, Inc.		3,300		53
		Cerner Corp.*		7,900		181
		Corillian Corp.*		80,194		136
		Digimarc Corp.*		53,300		837
		Digital Insight Corp.*		29,900		569

See notes to the financial statements. 31

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued)
	Small Cap Growth Fund June 30, 2003
			Number of		Market
			Shares		(000)
COMMON STOCK   (continued)		FileNET Corp.*		26,100	$	471
		Jack Henry & Associates, Inc.		8,500		151
		Keane, Inc.*		4,700		64
		Lawson Software, Inc.*		36,075		280
		LendingTree, Inc.*		500		12
		Mentor Graphics Corp.*		50,900		737
		Onyx Software Corp.*		130,800		127
		Quest Software, Inc.*		5,200		62
		RealNetworks, Inc.*		28,000		190
		Red Hat, Inc.*		116,600		883
		Roxio, Inc.*		3,300		22
		SkillSoft PLC* (ADR)		78,458		396
		THQ Inc.*		26,150		471
		Tibco Software, Inc.*		55,900		285
		Titan Corp.*		6,700		69
		TriZetto Group, Inc.* (The)		4,700		28
		WebEx Communications, Inc.*		700		10
		Websense, Inc.*		5,700		89
		Wind River Systems, Inc.*		48,248		182
						6,525
	Education Services 2.94%
		Education Management Corp.*		3,300		175
		Princeton Review, Inc.*		24,500		145
		Strayer Education, Inc.		2,700		215
		Sylvan Learning Systems, Inc.*		32,550		743
						1,278
	Electronic Equipment/Semiconductors 9.37%
		Active Power, Inc.*		15,600		26
		Credence Systems Corp.*		7,900		67
		Cymer, Inc.*		7,500		240
		DuPont Photomasks, Inc.*		5,900		111
		Exar Corp.*		8,300		131
		FEI Co.*		17,600		330
		FormFactor, Inc.*		188		3
		Genesis Microchip, Inc.*		25,900		351
		Glogespan Virata, Inc.*		25,500		210
		Integrated Device Technology, Inc.*		17,500		191
		Lattice Semiconductor Corp.*		85,100		700
		Microsemi Corp.*		1,400		22
		Mykrolis Corp.*		12,200		124
		OmniVision Technologies, Inc.*		500		16
		Pixelworks, Inc.*		125,700		747
		Power-One, Inc.*		32,500		229
		Rudolph Technologies, Inc.*		7,100		113
		Skyworks Solutions, Inc.*		8,500		57
		Trident Microsystems, Inc.*		5,200		47
		TriQuint Semiconductor, Inc.*		38,200		159
		Veeco Instruments, Inc.*		11,000		187
		Zoran Corp.*		500		10
						4,071
	Energy 5.44%
		Cal Dive International, Inc.*		6,339		138
		Evergreen Resources, Inc.*		400		22
		Forest Oil Corp.*		4,400		111
		Headwaters, Inc.*		7,100		104
		Helmerich & Payne, Inc.		9,391		274

32 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued)
	Small Cap Growth Fund
	June 30, 2003
			Number of		Market
			Shares		(000)
COMMON STOCK   (continued)		Key Energy Services, Inc.*		31,318	$	336
		Massey Energy Co.		6,000		79
		Parker Drilling Co.*		62,442		182
		Patterson-UTI Energy, Inc.*		8,191		265
		Pride International, Inc.*		22,700		427
		Remington Oil and Gas Corp.*		10,274		189
		Varco International, Inc.*		1,000		20
		Western Gas Resources, Inc.		5,500		218
						2,365
	Entertainment & Recreation 1.86%
		Argosy Gaming Co.*		13,249		277
		Hollywood Entertainment Corp.*		31,000		533
						810
	Food & Beverage 1.83%
		CEC Entertainment, Inc.*		2,300		85
		Cheesecake Factory, Inc.* (The)		4,900		176
		Chicago Pizza & Brewery, Inc.*		3,100		31
		P.F. Chang's China Bistro *		3,000		148
		RARE Hospitality International, Inc.*		9,300		304
		United Natural Foods, Inc.*		1,800		51
						795
	Health Care & Pharmaceuticals 4.57%
		Alliance Imaging, Inc.*		10,200		45
		Apria Healthcare Goup, Inc.*		3,900		97
		AtheroGenics, Inc.*		5,200		78
		Bioject Medical Technologies, Inc.*		16,300		65
		Bruker Daltonics, Inc.*		5,600		30
		Community Health Systems, Inc.*		1,200		23
		CryoLife, Inc.*		31,710		328
		CYTYC Corp.*		11,452		120
		Genesis Health Ventures, Inc.*		1,300		23
		Henry Schein, Inc.*		900		47
		MIM Corp.*		7,300		48
		Orthodontic Centers of America, Inc.*		9,500		76
		Osteotech, Inc.*		3,764		51
		Pediatrix Medical Group*		1,600		57
		Province Healthcare Co.*		4,300		48
		Sunrise Senior Living, Inc.*		3,800		85
		TheraSense, Inc.*		24,700		247
		Transgenomic, Inc.*		25,400		48
		Vicuron Pharmaceuticals, Inc.*		5,000		71
		ViroPharma, Inc.*		6,000		16
		Wright Medical Group*		20,200		384
						1,987
	Insurance 0.84%
		Centene Corp.*		5,500		214
		RLI Corp.		4,600		151
						365
	Media & Media Services 4.29%
		Gray Television, Inc.		19,900		247
		Insight Communications, Inc.*		16,800		221
		LIN TV Corp.*		6,100		144
		Macrovision Corp.*		16,200		323
		Playboy Enterprises, Inc.* - B		29,270		398

See notes to the financial statements. 33

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued)
	Small Cap Growth Fund
	June 30, 2003
			Number of		Market
			Shares		(000)
COMMON STOCK   (concluded)		Radio One, Inc.* - D		3,000	$	53
		Sinclair Broadcast Group* - A		14,200		165
		Spanish Broadcasting System, Inc.* - A		38,500		314
						1,865
	Retail & Apparel 8.52%
		Charlotte Russe Holding, Inc.*		5,399		56
		Chico's FAS, Inc.*		10,700		225
		Christopher & Banks Corp.*		7,000		259
		Cost Plus, Inc.*		8,200		292
		CSK Auto Corp.*		23,100		334
		Duane Reade, Inc.*		22,100		326
		Gymboree Corp.* (The)		4,600		77
		Hot Topic, Inc.*		15,000		404
		Insight Enterprises, Inc.*		4,700		47
		Kenneth Cole Productions, Inc.*		13,100		255
		Pacific Sunwear of California, Inc.*		4,050		98
		Phillips-Van Heusen Corp.		12,200		166
		Pier 1 Imports, Inc.		10,700		218
		Quiksilver, Inc.*		15,600		257
		Reebok International Ltd.*		2,900		98
		Too, Inc.*		14,900		302
		Tuesday Morning Corp.*		5,252		138
		West Marine, Inc.*		8,600		151
						3,703
	Transportation 0.70%
		Arkansas Best Corp.		3,200		76
		SkyWest, Inc.		11,926		227
						303
	Total Common Stock 97.47%					42,371
		(Cost $38,101)

34 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (concluded)
	Small Cap Growth Fund
	June 30, 2003
						Principal
				Maturity		Amount		Market
			Rate	Date		(000)		(000)
SHORT-TERM INVESTMENT	Federal Home Loan Bank
		Discount Note	0.95%		07/01/03	$	1,000	$	1,000
	Total Short-Term Investment 2.30%								1,000
		(Cost $1,000)
	Total Investments 99.77%								43,371
		(Cost $39,101)
	Cash and Other Assets in
		Excess of Liabilities 0.23%							99
	Net Assets 100.00%							$	43,470
	*	Non-income producing during the six months ended June 30, 2003 as this security did not pay dividends.

See notes to the financial statements. 35

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments International Equity Fund June 30, 2003		Number of Shares		Market (000)
COMMON STOCK	Australia 1.83%
		BHP Billiton Ltd. (Metals & Mining)	89,743	$		521
	France 11.28%
		Accor S.A. (Hotels)	7,666			278
		Aventis S.A. (Pharmaceuticals)	5,156			284
		Carrefour S.A. (Retail)	13,771			676
		France Telecom (Telecommunications)	19,461			478
		Pernod-Ricard S.A. (Beverages)	1,473			132
		Pin-Printemps Redoute S.A. (Retail)	3,367			254
		Suez Lyonnaise des Eaux (Utilities)	19,228			307
		Total Fina Elf SA-B (Oil & Gas)	4,328			655
		Valeo S.A. (Automotive)	4,439			154
						3,218
	Germany 6.97%
		Deutsche Boerse AG (Financial)	2,960			157
		Metro AG (Retail)	10,359			335
		Muenchener Rueckversicherungs AG (Insurance)	4,471			457
		Siemens AG (Congolmerates)	8,429			414
		Volkswagen AG (Automobiles)	14,766			625
						1,988
	Hong Kong 3.95%
		China Mobile Ltd. (Telecommunications)	181,000			427
		China Telecom Corp. Ltd.* (Telecommunications)	1,094,000			251
		Sun Hung Kai Properties Ltd. (Real Estate)	72,000			363
		Swire Pacific Ltd. (Financial)	19,500			85
						1,126
	Italy 6.50%
		Banca Intesa S.p.A. (Banks)	198,462			636
		ENI S.p.A. (Oil & Gas)	44,198			669
		Mediaset S.p.A. (Media)	64,993			551
						1,856
	Japan 16.80%
		Bridgestone Corp. (Automotive)	36,000			489
		Canon, Inc. (Electronics)	12,000			552
		Honda Motor Co. Ltd. (Automobiles)	11,400			433
		ITO-Yokado Co. Ltd. (Retail)	11,000			264
		Matsushita Electric Industries Co. (Household Durables)	50,000			496
		Nissan Motor Co. Ltd. (Automobiles)	53,200			509
		Nomura Holdings Inc. (Financial)	29,000			369
		NTT DoCoMo PLC (Telecommunications)	129			280
		Orix Corp. (Financial)	5,600			310
		Ricoh Co. Ltd. (Electronics)	18,000			295
		Rohm Co. Ltd. (Electronics)	3,000			328
		Seiko Epson Corp. (Electronics)	700			21
		Shin-Etsu Chemical Co. Ltd. (Chemicals)	13,100			448
						4,794
	Korea 4.90%
		Kookmin Bank (ADR) (Financial)	12,025			364
		Samsung Electronics Ltd.^ (ADR) (Electronics)	5,245			780
		SK Telecom Co. (ADR) (Telecommunications)	13,517			255
						1,399
	Netherlands 8.30%
		Aegon N.V. (Insurance)	32,600			327
		Heineken N.V. (Beverages)	9,845			350

36 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued)
	International Equity Fund
	June 30, 2003
			Number of		Market
			Shares		(000)
COMMON STOCK   (concluded)		Koninklijke KPN N.V.* (Household Durables)		33,032	$	234
		Philips Electronic (Household Durables)		25,460		485
		Unilver N.V. (Food Products)		4,590		247
		VNU N.V. (Media)		23,561		727
						2,370
	Singapore 2.66%
		DBS Group Holdings Ltd. (Financial)		60,000		351
		United Overseas Bank Ltd. (Financial)		58,000		408
						759
	Spain 4.42%
		Acerinox S.A. (Metals & Mining)		3,298		126
		Banco Santander Central Hispanic (Financial)		48,880		429
		Telefonica S.A. (Telecommunications)		60,827		707
						1,262
	Sweden 1.61%
		TeliaSonera AB (Telecommunications)		110,758		460
	Switzerland 4.66%
		Adecco S.A. (Commerical Services)		7,119		294
		Credit Suisse Group (Financial)		10,961		289
		Roche Holding AG (Pharmaceuticals)		3,522		277
		Nestle S.A. (Food Products)		618		128
		Novartis AG (Pharmaceuticals)		8,651		343
						1,331
	Taiwan 0.77%
		Taiwan Semiconductor Mfg. Co. Ltd.* (ADR) (Electronics)		21,922		221
	Thailand 0.50%
		Bangkok Bank Co.* (Financial)		88,700		142
	Turkey 0.05%
		Turkcell Iletisim Hizmetleri* (ADR) (Telecommunications)		806		14
	United Kingdom 20.97%
		AstraZenca PLC (Pharmaceuticals)		7,339		295
		BAA PLC (Transportation)		34,899		283
		BAE Systems PLC (Aerospace)		133,220		314
		British Sky Broadcasting PLC* (Media)		52,050		578
		Diageo PLC (Beverages)		24,620		263
		HBOS PLC (Financial)		32,881		426
		HSBC Holdings PLC (Financial)		59,862		708
		Imperial Tobacco Group PLC (Tobacco)		25,244		452
		InterContinental Hotels Group PLC (Hotels)		25,159		179
		Kingfisher PLC (Retail)		96,632		443
		Marks & Spencer Group PLC (Retail)		64,620		337
		Mitchells & Butler PLC (Hotels)		37,945		147
		Reed Elsevier PLC (Media)		67,723		564
		Royal Bank of Scotland Group PLC (Financial)		11,241		316
		Vodafone Group PLC (Telecommunications)		346,531		679
						5,984
	Total Common Stock 96.17%					27,445
		(Cost $27,863)

See notes to the financial statements. 37

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (concluded)
	International Equity Fund
	June 30, 2003
						Principal
				Maturity		Amount		Market
			Rate	Date		(000)		(000)
SHORT-TERM INVESTMENT	State Street Bank - Repurchase Agreement
		dated 06/30/03 (secured by $1,097,
		US Treasury Note, 3.625%, 03/31/04)	0.40%		07/01/03	$	1,071	$	1,071
	Total Short-Term Investment 3.75%								1,071
		(Cost $1,071)
	Total Investments 99.92%								28,516
		(Cost $28,934)
	Foreign Currency 0.03%								9
		(Various Denominations)
		(Cost $9)
	Cash and Other Assets in
		Excess of Liabilities 0.05%							14
	Net Assets 100.00%							$	28,539
	*	Non-income producing during the six months ended June 30, 2003 as this security did not pay dividends.
	^	Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold, in transactions exempt from registration to qualified institutional buyers. At June 30, 2003, these securities amounted to $780.

38 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments Socially Responsible Fund June 30, 2003		Number of Shares		Market (000)
COMMON STOCK	Aerospace 1.05%
		Boeing Co.	6,600	$	227
		Goodrich Corp.	4,100		86
		Textron, Inc.	9,200		359
					672
	Automotive 3.18%
		Autoliv, Inc.	17,200		466
		Dana Corp.	19,200		222
		Delphi Corp.	42,500		367
		Genuine Parts Co.	13,300		426
		Lear Corp.*	9,800		451
		Paccar, Inc.	1,600		108
					2,040
	Banks & Financial Services 29.88%
		AmSouth Bancorporation	23,200		506
		Bank of America Corp.	27,200		2,149
		Bank One Corp.	25,100		933
		Citigroup, Inc.	62,666		2,682
		Countrywide Financial Corp.	5,800		403
		Federal Home Loan Mortgage Corp.	7,600		386
		Federal National Mortgage Association	4,600		310
		FleetBoston Financial Corp.	28,500		847
		Golden West Financial Corp.	7,500		600
		Huntington Bancshares, Inc.	24,400		476
		J.P. Morgan Chase & Co.	17,700		605
		KeyCorp	19,100		483
		Lehman Brothers Holdings, Inc.	8,600		572
		Merrill Lynch & Company, Inc.	5,700		266
		Morgan Stanley Dean Witter & Co.	16,000		684
		National City Corp.	19,400		635
		Regions Financial Corp.	14,500		490
		SouthTrust Corp.	18,700		509
		SunTrust Banks, Inc.	8,600		510
		U.S. Bancorp	45,600		1,117
		Union Planters Corp.	12,600		391
		UnionBanCal Corp.	5,100		211
		Wachovia Corp.	33,500		1,339
		Washington Mutual, Inc.	23,000		950
		Wells Fargo & Co.	22,500		1,134
					19,188
	Business Machines 3.31%
		Hewlett-Packard Co.	63,000		1,342
		International Business Machines Corp.	9,500		784
					2,126
	Chemicals 4.05%
		Cabot Corp.	10,300		295
		Dow Chemical Co.	22,500		697
		Eastman Chemical Co.	9,600		304
		FMC Corp.*	5,400		122
		Lubrizol Corp.	9,000		279
		PPG Industries, Inc.	9,000		456
		Praxair, Inc.	7,500		451
					2,604

See notes to the financial statements. 39

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued)
	Socially Responsible Fund
	June 30, 2003
			Number of		Market
			Shares		(000)
COMMON STOCK   (continued)	Communication Equipment & Services 11.11%
		ADC Telecommunications, Inc.*		106,600	$	248
		AT&T Corp.		23,220		447
		AT&T Wireless Services, Inc.*		85,700		704
		BellSouth Corp.		35,300		940
		Corning, Inc.*		96,900		716
		Nortel Networks Corp.*		192,600		520
		Qwest Communications International, Inc.*		81,300		389
		SBC Communications, Inc.		45,922		1,173
		Sprint FON Group		37,600		541
		Sprint PCS Group*		21,800		125
		Tellabs, Inc.*		25,200		167
		Verizon Communications, Inc.		29,500		1,164
						7,134
	Computer Software & Services 0.95%
		Ingram Micro, Inc.* - A		21,900		241
		Quantum Corp.*		27,600		112
		Tech Data Corp.*		9,500		254
						607
	Construction 1.28%
		Martin Marietta Materials, Inc.		5,700		192
		Plute Homes Inc.		10,200		629
						821
	Consumer Products 3.40%
		ConAgra Foods, Inc.		24,300		573
		Deluxe Corp.		2,600		116
		Eastman Kodak Co.		16,500		451
		Masco Corp.		6,900		165
		Newell Rubbermaid, Inc.		18,900		529
		Procter & Gamble Co. (The)		3,950		352
						2,186
	Electronic Equipment & Services 1.94%
		Arrow Electronics, Inc.*		15,900		242
		Avnet, Inc.*		15,100		191
		Cooper Industries, Ltd. - A		7,400		306
		Hubbell, Inc. - B		8,600		285
		Sanmina-SCI Corp.*		19,100		121
		Solectron Corp.*		27,200		102
						1,247
	Energy 4.10%
		Amerada Hess Corp.		6,000		295
		Ashland, Inc.		10,000		307
		Kerr-McGee Corp.		7,500		336
		Marathon Oil Corp.		17,100		450
		Occidental Petroleum Corp.		15,300		513
		Unocal Corp.		13,300		382
		Valero Energy Corp.		9,700		352
						2,635
	Food & Beverage 1.52%
		McDonald's Corp.		4,400		97
		Sara Lee Corp.		25,300		476
		Tyson Foods, Inc. - A		37,619		400
						973

40 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (continued)
	Socially Responsible Fund June 30, 2003
			Number of		Market
			Shares		(000)
COMMON STOCK   (continued)	Health Care & Pharmaceuticals 2.07%
		Bristol-Myers Squibb Co.		5,000	$	136
		Merck & Company, Inc.		8,800		533
		Pfizer, Inc.		19,380		662
						1,331
	Insurance 8.69%
		Allstate Corp.		20,200		720
		American International Group, Inc.		11,500		635
		Chubb Corp.		7,600		456
		CIGNA Corp.		9,200		432
		Health Net, Inc.*		3,400		112
		Humana, Inc.*		20,400		308
		John Hancock Financial Services, Inc.		15,600		479
		MBIA, Inc.		6,500		317
		MetLife, Inc.		16,900		479
		Old Republic International Corp.		7,300		250
		Oxford Health Plans, Inc.*		8,100		340
		PartnerRe Ltd.		2,900		148
		St. Paul Companies, Inc.		11,100		405
		Torchmark Corp.		10,500		391
		Travelers Property Casualty Corp. - A		2,271		36
		Travelers Property Casualty Corp. - B		4,666		74
						5,582
	Manufacturing (Diversified) 2.80%
		Black & Decker Corp.		10,200		443
		Ingersoll-Rand Co. - A		4,600		218
		Leggett & Platt, Inc.		18,100		371
		Parker Hannifin Corp.		9,200		386
		Tyco International Ltd.		20,100		381
						1,799
	Media & Media Services 2.70%
		Comcast Corp.* - A		39,000		1,177
		Gannett Company, Inc.		8,900		384
		Liberty Media Corp.* - A		5,900		68
		Walt Disney Co. (The)		5,200		103
						1,732
	Paper & Forest Products 2.69%
		Boise Cascade Corp.		10,100		241
		MeadWestvaco Corp.		14,647		362
		Smurfit-Stone Container Corp.*		24,200		315
		Temple-Inland, Inc.		7,200		809
						1,727
	Railroad & Shipping 2.38%
		Burlington Northern Santa Fe Corp.		19,100		543
		CSX Corp.		13,500		406
		Union Pacific Corp.		10,000		580
						1,529
	Retail & Apparel 3.19%
		Albertson's, Inc.		2,800		54
		Liz Claiborne, Inc.		15,400		543
		May Department Stores Co. (The)		15,200		338
		Sears, Roebuck and Co.		18,200		612
		Sherwin-Williams Co.		11,300		304
		TJX Companies, Inc.		10,500		198
						2,049

See notes to the financial statements. 41

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

	Statement of Investments (concluded)
	Socially Responsible Fund June 30, 2003
			Number of		Market
			Shares		(000)
COMMON STOCK   (concluded)	Utilities 6.54%
		Alliant Corp.		10,900	$	207
		Ameren Corp.*		11,100		290
		Cinergy Corp.		13,700		504
		Constellation Energy Group		15,900		545
		Edison International*		13,300		219
		Entergy Corp.		11,100		586
		Northeast Utilities System		15,400		258
		PPL Corp.		11,100		477
		Puget Energy, Inc.		975		23
		Reliant Resources, Inc.*		29,500		181
		Sempra Energy Co.		14,500		414
		Wisconsin Energy Corp.		17,000		493
						4,197
	Total Common Stock 96.83%					62,179
		(Cost $64,067)

						Principal
				Maturity		Amount		Market
			Rate	Date		(000)		(000)
SHORT-TERM INVESTMENT	State Street Bank - Repurchase Agreement
		dated 06/30/03 (secured by $2,029,
		US Treasury Note, 3.625%, 03/31/04)	0.40%		07/01/03	$	1,987	$	1,987
	Total Short-Term Investment 3.09%								1,987
		(Cost $1,987)
	Total Investments 99.92%								64,166
		(Cost $66,054)
	Cash and Other Assets in
		Excess of Liabilities 0.08%							48
	Net Assets 100.00%							$	64,214
	*	Non-income producing during the six months ended June 30, 2003 as this security did not pay dividends.

42 See notes to the financial statements.

(THIS PAGE INTENTIONALLY LEFT BLANK)

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
	(UNAUDITED)

Statement of Assets and Liabilities

June 30, 2003

							SHORT- TERM			SMALL CAP	INTERNATIONAL			SOCIALLY
		EQUITY		BALANCED		INCOME		INVESTMENT		GROWTH	EQUITY			RESPONSIBLE
		FUND		FUND		FUND		FUND		FUND	FUND			FUND
ASSETS
Cash	$	1,488	$	—	$	357,807	$	585,998	$	136,092	$	813	$	734
Investments at market value*		480,427,992		253,436,183		141,975,478		3,466,057		43,371,445		28,516,077		64,165,654
Foreign currency at value*		—		—		35,164		—		—		8,667		—
Forward currency contracts		—		—		82,504		—		—		—		—
Dividends and interest
receivable		688,372		—		1,224,443		8,966		5,844		31,127		148,819
Receivable-foreign taxes		—		—		—		—		16		42,993		—
Receivable-fund shares sold		191,779		143,802		34,040		18,646		68,049		50,246		62,673
Receivable-investments sold		1,012,758		—		1,831,999		—		577,333		511		—
Total Assets		482,322,389		253,579,985		145,541,435		4,079,667		44,158,779		28,650,434		64,377,880
LIABILITIES
Forward currency contracts		—		—		64,975		—		—		13		—
Payable-fund shares redeemed		206,730		156,219		1,589		12,022		31,569		9,817		61,167
Payable-investments purchased		628,288		—		24,357,756		262,117		551,476		—		—
Payable-foreign taxes		1,936		—		3,182		—		149		—		—
Payable-advisory and related
fees		381,164		—		90,068		—		62,055		33,242		67,086
Accrued expenses		126,190		54,873		37,743		1,998		43,192		67,905		35,996
Total Liabilities		1,344,308		211,092		24,555,313		276,137		688,441		110,977		164,249
NET ASSETS	$	480,978,081	$	253,368,893	$	120,986,122	$	3,803,530	$	43,470,338	$	28,539,457	$	64,213,631
NET ASSETS CONSIST OF:
Par Value of Shares		27,921,240		1,595,523		913,090		37,402		—		—		—
Paid in Surplus		595,172,984		285,776,338		106,726,260		3,730,029		73,520,609		45,673,587		70,126,362
Accumulated undistributed
net investment income (loss)		3,130,769		(74,320)		3,037,939		26,737		(296,131)		183,776		476,005
Accumulated undistributed
net realized gain (loss) from
investments and foreign
currency transactions		(123,628,436)		(15,831,766)		686,404		71		(34,024,518)		(16,903,974)		(4,500,041)
Net unrealized appreciation
(depreciation) on
investments and translation
of assets and liabilities
in foreign currency		(21,618,476)		(18,096,882)		9,622,429		9,291		4,270,378		(413,932)		(1,888,695)
NET ASSETS	$	480,978,081	$	253,368,893	$	120,986,122	$	3,803,530	$	43,470,338	$	28,539,457	$	64,213,631
Number of shares outstanding:
(Authorized 50,000,000
shares each)		27,921,240		15,955,225		9,130,906		374,024		4,699,566		3,206,715		5,348,295
Par Value	$	1.00	$	0.10	$	0.10	$	0.10		—		—		—
NET ASSET VALUE
PER SHARE	$	17.23	$	15.88	$	13.25	$	10.17	$	9.25	$	8.90	$	12.01
* Cost of Securities:
Investments	$	502,046,468	$	271,533,065	$	132,376,456	$	3,456,766	$	39,101,067	$	28,934,470	$	66,054,349
Foreign Currency		—		—	$	35,448		—		—	$	8,691		—

44 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

Statement of Operations

For the Six Months Ended June 30, 2003

							SHORT-TERM		SMALL CAP		INTERNATIONAL		SOCIALLY
	EQUITY		BALANCED		INCOME		INVESTMENT		GROWTH		EQUITY		RESPONSIBLE
	FUND		FUND		FUND		FUND		FUND		FUND		FUND
INVESTMENT INCOME:
Dividends	$	4,770,319	$	—	$	2,756	$	—	$	23,189	$	456,398	$	746,714
Interest		24,445		—		3,194,361		26,459		4,906		1,806		3,694
Other Income		278		—		26,730		11		—		—		43
		4,795,042		—		3,223,847		26,470		28,095		458,204		750,451
Foreign taxes withheld		(6,569)		—		(10,335)		—		(173)		(55,325)		—
Total investment income		4,788,473		—		3,213,512		26,470		27,922		402,879		750,451
EXPENSES:
Advisory fees		896,967		—		230,968		2,301		208,341		109,463		207,480
Administrative and
support fees		960,563		—		242,164		7,206		78,380		55,434		127,490
Professional fees		71,452		37,541		26,296		8,750		12,900		12,055		15,941
Fund pricing fees		40,429		1,964		11,782		646		13,746		14,728		5,891
Custodian fees		82,083		3,987		23,922		1,312		27,909		29,903		11,961
Transfer agent fees		14,818		24		24		24		24		24		24
Shareholder reports		16,207		2,702		376		—		2,161		1,350		2,161
Trustees' fees and expenses		21,635		10,769		4,296		173		1,388		970		2,078
Insurance		25,458		13,623		6,523		—		2,104		1,473		3,156
Other Fees		2,968		403		193		8		62		44		93
Total expenses		2,132,580		71,013		546,544		20,420		347,015		225,444		376,275
Less advisory fees waived		(77,802)		—		(28,430)		—		(22,181)		(6,324)		(57,865)
Less expenses waived
or reimbursed by
Horace Mann Investors, Inc.		—		—		—		(18,257)		—		—		—
Less earnings credits on
cash balances		(18)		(382)		(2,930)		(1,497)		(781)		(13)		(17)
Less expenses paid
by commission credits		(107,110)		—		—		—		—		—		—
Net expenses		1,947,650		70,631		515,184		666		324,053		219,107		318,393
Net investment
income (loss)		2,840,823		(70,631)		2,698,328		25,804		(296,131)		183,772		432,058
REALIZED AND UNREALIZED
GAIN (LOSS):
Realized gain (loss) from:
Investments		(11,819,098)		(2,306,721)		2,040,173		68		(573,142)		(518,789)		(1,139,016)
Foreign currency transactions		78		—		(1,314,590)		—		—		1,148		—
Net realized gain (loss) on
investments and foreign
currency transactions		(11,819,020)		(2,306,721)		725,583		68		(573,142)		(517,641)		(1,139,016)
Change in unrealized
appreciation on:
Investments		56,239,035		24,183,096		3,705,942		3,255		9,410,393		2,253,868		6,781,420
Translation of assets and
liabilities in foreign
currencies		—		—		326,587		—		—		(774)		—
Net realized and unrealized
gain from investments
and foreign currency
transactions		44,420,015		21,876,375		4,758,112		3,323		8,837,251		1,735,453		5,642,404
NET INCREASE
IN NET ASSETS
FROM OPERATIONS	$	47,260,838	$	21,805,744	$	7,456,440	$	29,127	$	8,541,120	$	1,919,225	$	6,074,462

See notes to the financial statements. 45

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

Statement of Changes in Net Assets

For the Periods Ended June 30, 2003 and December 31, 2002

		EQUITY FUND					BALANCED FUND					INCOME FUND
			2003		2002			2003		2002		2003		2002
INCREASE (DECREASE) IN
NET ASSETS
FROM OPERATIONS:
Net investment income (loss)	$		2,840,823	$	6,113,476	$		(70,631)	$	7,378,701	$	2,698,328	$	6,597,395
Affiliated mutual fund capital
gain distributions			—		—			—		1,558,592		—		—
Net realized short-term gain (loss)
on investments and foreign
currency transactions			(961,193)		(18,354,553)			—		39,602		(387,161)		780,265
Net realized long-term gain (loss)
on investments and foreign
currency transactions			(10,857,827)		(31,143,946)			(2,306,721)		(4,006,142)		1,112,744		1,736,219
Net unrealized appreciation
(depreciation) on investments and
translation of assets and liabilities
in foreign currency			56,239,035		(68,967,953)			24,183,096		(28,992,809)		4,032,529		1,450,288
Change in net assets
from operations			47,260,838		(112,352,976)			21,805,744		(24,022,056)		7,456,440		10,564,167
FROM DISTRIBUTION
TO SHAREHOLDERS:
Net investment income			—		(6,003,633)			—		(7,401,265)		—		(6,681,714)
Tax return of capital			—		—			—		(22,784)		—		—
Net realized short-term gain (loss)
from investments and foreign
currency transactions			—		—			—		—		—		—
Net realized long-term loss
from investments and foreign
currency transactions			—		—			—		—		—		(1,867,474)
Total distributions to shareholders			—		(6,003,633)			—		(7,424,049)		—		(8,549,188)
FROM FUND SHARE
TRANSACTIONS:
Proceeds from shares sold			14,138,436		43,275,800			8,229,830		18,689,543		9,162,473		17,558,411
Net asset value of shares issued
in reinvestment of dividends and
capital gain distributions			—		5,963,066			—		7,424,049		—		6,923,202
			14,138,436		49,238,866			8,229,830		26,113,592		9,162,473		24,481,613
Cost of shares redeemed			(29,980,309)		(81,338,785)			(17,151,902)		(46,280,840)		(10,568,265)		(37,605,939)
Net increase (decrease) in net assets from
fund share transactions			(15,841,873)		(32,099,919)			(8,922,072)		(20,167,248)		(1,405,792)		(13,124,326)
TOTAL INCREASE (DECREASE)
IN NET ASSETS			31,418,965		(150,456,528)			12,883,672		(51,613,353)		6,050,648		(11,109,347)
NET ASSETS:
Beginning of period			449,559,116		600,015,644			240,485,221		292,175,536		114,935,474			126,044,821
End of period	$		480,978,081	$	449,559,116	$		253,368,893	$	240,562,183	$	120,986,122	$		114,935,474
Undistributed net investment
income (loss)	$		3,130,769	$	289,946	$		(74,320)	$	(3,689)	$	3,037,939	$		339,611

46 See notes to the financial statements.

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

SHORT-TERM				SMALL CAP				INTERNATIONAL				SOCIALLY
INVESTMENT FUND				GROWTH FUND				EQUITY FUND				RESPONSIBLE FUND
	2003		2002		2003		2002		2003		2002		2003		2002
$	25,804	$	65,709	$	(296,131)	$	(695,505)	$	183,772	$	(24,917)	$	432,058	$	893,609
	—		—		—		—		—		—		—		—
	68		479		844,591		(10,299,249)		(237,785)		(4,501,684)		198,486		(1,611,050)
	—		—		(1,417,733)		(33,212)		(279,856)		(2,473,573)		(1,337,502)		(1,414,100)
	3,255		(5,296)		9,410,393		(11,606,108)		2,253,094		(25,273)		6,781,420		(7,696,996)
	29,127		60,892		8,541,120		(22,634,074)		1,919,225		(7,025,447)		6,074,462		(9,828,537)
	—		(66,263)		—		—		—		(11,608)		—		(871,231)
	—		—		—		—		—		(99)		—		—
	—		—		—		—		—		—		—		—
	—		—		—		—		—		—		—		—
	—		(66,263)		—		—		—		(11,707)		—		(871,231)
	2,526,413		5,964,362		3,488,396		8,987,162		2,996,479		7,195,568		4,085,495		10,055,764
	—		66,263		—		—		—		11,707		—		871,231
	2,526,413		6,030,625		3,488,396		8,987,162		2,996,479		7,207,275		4,085,495		10,926,995
	(2,935,340)		(4,637,845)		(3,327,330)		(10,021,837)		(2,662,377)		(7,428,093)		(4,906,024)		(12,911,160)
	(408,927)		1,392,780		161,066		(1,034,675)		334,102		(220,818)		(820,529)		(1,984,165)
	(379,800)		1,387,409		8,702,186		(23,668,749)		2,253,327		(7,257,972)		5,253,933		(12,683,933)
	4,183,330		2,795,921		34,768,152		58,436,901		26,286,130		33,544,102		58,959,698		71,643,631
$	3,803,530	$	4,183,330	$	43,470,338	$	34,768,152	$	28,539,457	$	26,286,130	$	64,213,631	$	58,959,698
$	26,737	$	933	$	(296,131)	$	—	$	183,776	$	4	$	476,005	$	43,947

47

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

Notes to the Financial Statements

June 30, 2003

1. BUSINESS ORGANIZATION — The Horace Mann Mutual Funds (the "Trust") is an open-end, diversified management investment company registered under the Investment Company Act of 1940, which offers units of beneficial ownership (shares) in seven separate investment portfolios: Equity Fund, Balanced Fund, Income Fund, Short-Term Investment Fund, Small Cap Growth Fund, International Equity Fund and Socially Responsible Fund. These funds collectively are referred to as the "Funds". Shares are presently offered to Horace Mann Life Insurance Company (HMLIC) Separate Account and the HMLIC 401(k) Separate Account. The Equity Fund shares also may be purchased under the dividend reinvestment plans by certain shareholders.

FUND INVESTMENT OBJECTIVES:

A.	Equity Fund — primary, long-term capital growth; secondary, conservation of principal and production of income.
B.	Balanced Fund — realization of high long-term total rate of return consistent with prudent investment risks.
C.	Income Fund — long-term total rate of return in excess of the U.S. bond market over a full market cycle.
D.	Short-Term Investment Fund — primary, realize maximum current income to the extent consistent with liquidity; secondary, preservation of principal.
E.	Small Cap Growth Fund — long-term capital appreciation through investing primarily in equity securities of small cap companies with earnings growth potential.
F.	International Equity Fund — long-term growth of capital through a diversified portfolio of marketable foreign equity securities.
G.	Socially Responsible Fund — long-term growth of capital, current income and growth of income through investing primarily in equity securities of issuers that meet certain socially responsible criteria.

2. SIGNIFICANT ACCOUNTING POLICIES:

A.

Security valuation — A security listed or traded on U.S. or foreign stock exchanges is valued at its last sales price on the exchange where it is principally traded. In the absence of a current quotation, the security is valued at the mean between the last bid and asked prices on that exchange. Securities quoted on the National Association of Securities Dealers Automatic Quotation (NASDAQ) System are valued at the NASDAQ official closing price. Securities traded over-the-counter (other than on NASDAQ) are valued at the last current sale price. Debt securities that have a remaining maturity of 60 days or less are valued at cost, plus or minus any unamortized premium or discount. Foreign securities are converted to United States dollars using exchange rates at the close of the New York Stock Exchange. Securities not valued at cost or by the Board of Trustees or its delegate are valued using a quotation from an independent pricing service. In the event market quotations are not readily available, securities would be valued at fair value as determined in good faith by the Board of Trustees or its delegate. Investments in funds within the Balanced Fund are valued at their net asset value as reported by the underlying funds.

B.

Security transactions and investment income — Security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign dividends, as soon as they become available. Interest income including level yield, premium and discount amortization is accrued daily. Securities gains and losses are determined on the basis of identified cost.

48

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

Notes to the Financial Statements (continued)

June 30, 2003

	The Income Fund may purchase or sell securities on a when-issued or delayed-delivery basis and make contracts to purchase or sell securities for a fixed price at a future date beyond customary settlement time. Securities purchased or sold on a when-issued, delayed-delivery or forward commitment basis involve a risk of loss if the value of the security to be purchased declines prior to the settlement date. Although the Fund would generally purchase securities on a when-issued, delayed-delivery or forward commitment basis with the intention of acquiring the securities, the Fund may dispose of such securities prior to settlement if its subadviser deems it appropriate to do so. The Fund may dispose of or negotiate a when-issued or forward commitment after entering into these transactions. Such transactions are generally considered to be derivative transactions. The Funds will normally realize a capital gain or loss in connection with these transactions. When the Fund purchases securities on a when-issued, delayed-delivery or forward commitment basis, the Fund's custodian will maintain in a segregated account cash or liquid securities having a value (determined daily) at least equal to the amount of the Fund's purchase commitments. In the case of a forward commitment to sell portfolio securities, the custodian will hold the portfolio securities themselves in a segregated account while the commitment is outstanding. These procedures are designed to ensure that the Fund will maintain sufficient assets at all times to cover its obligations under when-issued purchases, forward commitments and delayed-delivery transactions.
C.	Federal income taxes — It is the Funds' policy to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all taxable income to their shareholders. No provision has been made for federal income or excise taxes. Dividends and distributions payable to shareholders are recorded by the Funds on the record date. Net investment income for federal income tax purposes includes paydown gains and losses on mortgage backed securities and gains and losses realized on foreign currency transactions. These gains and losses are reclassified as net realized gains and losses for financial reporting purposes. The Equity Fund, Balanced Fund, Small Cap Growth Fund, International Equity Fund and Socially Responsible Fund intend to utilize provisions of the federal income tax laws which allow them to carry a realized capital loss forward for eight years following the year of the loss and offset such losses against any future realized capital gains. At December 31, 2002, the Equity Fund and Balanced Fund had an accumulated capital loss carry forward for tax purposes of $61,825,975 and $8,417,754, respectively, which will expire on December 31, 2008. At December 31, 2002, the Small Cap Growth Fund and International Equity Fund had an accumulated capital loss carry forward for tax purposes of $22,900,999 and $9,018,487, respectively, which will expire on December 31, 2009. At December 31, 2002, the Equity Fund, Small Cap Growth Fund, International Equity Fund and Socially Responsible Fund had an accumulated capital loss carry forward for tax purposes of $42,546,430, $9,619,277, $7,076,246 and $3,022,103, respectively, which will expire on December 31, 2010.
	Net investment income and net realized gains or losses differ for financial reporting and tax purposes as a result of losses from wash sales, the mark to market of foreign currency contracts, sale of passive foreign investment companies, the receipt of long-term capital gain dividends from Regulated Investment Companies and the utilization of capital loss carry forwards.
D.	Dividends and distributions — Dividends and distributions from net investment income and net realized gains are paid out annually and are recorded on the ex-dividend date.
	Distributions from net realized gains for book purposes may include short-term capital gains, which are included as ordinary income for tax purposes.

49

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
		(UNAUDITED)

Notes to the Financial Statements (continued)

June 30, 2003

Due to inherent differences in the recognition of income, expenses and realized gains/losses under accounting principles generally accepted in the United States of America and federal income tax purposes, permanent differences arise between book and tax basis reporting.

E.

Use of estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires 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 increases and decreases in net assets from operations during the period. Actual results could differ from those estimates.

3. OPERATING POLICIES:

A.	Repurchase Agreements — Securities pledged as collateral for repurchase agreements are held by State Street Bank and Trust Company and are designated as being held on each Fund's behalf by its custodian under a book-entry system. Each Fund monitors the adequacy of the collateral on a daily basis and can require the seller to provide additional collateral in the event the market value of the securities pledged falls below the carrying value of the repurchase agreement, including accrued interest. Each Fund will only enter into repurchase agreements with banks and other financial institutions which are deemed by the investment adviser to be creditworthy.
B.	Asset Backed Securities — These securities are secured by installment loans or leases or by revolving lines of credit. They often include credit enhancements that help limit investors' exposure to the underlying credit. These securities are valued on the basis of the timing and certainty of the cash flows compared to investments with similar durations.
C.	Collateralized Mortgage Obligations — Planned Amortization Class (PAC) — These securities have a predetermined schedule for principal repayment coupled with an enhanced degree of cash-flow certainty. A PAC security is a specific class of mortgages which usually carry the most stable cash flows and the lowest amount of prepayment risk. These securities are valued on the basis of the timing and certainty of the cash flows compared to investments with similar durations.
D.	American Depository Receipts (ADR) — A certificate issued by an American bank to evidence ownership of original foreign shares. The certificate is transferable and can be traded. The original foreign stock certificate is deposited with a foreign branch or correspondent bank of the issuing American bank.
E.	Commission Credits — Bernstein Investment Research and Management Unit of Alliance Capital Management, L.P., Mellon Equity Associates, LLP and Wellington Management Company, LLP, subadvisers for the Equity Fund, seek the best price and execution on each transaction and negotiate commission rates solely on the execution requirements of each trade. Occasionally, they place, under a directed brokerage arrangement, common stock trades with a broker/dealer who credits to the Fund part of the commissions paid.
F.	Earnings Credits on Cash Balances — During the six months ended June 30, 2003, the Funds' custody fees were reduced as a result of credits earned on overnight cash balances.

50

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
	(UNAUDITED)

Notes to the Financial Statements (continued)

June 30, 2003

G.

Foreign Currency Transactions — The books and records of the Funds are maintained in U.S. dollars. Foreign currency transactions are translated into U.S. dollars on the following basis: market value of investment securities, other assets and other liabilities at the daily rates of exchange and purchases and sales of investment securities, dividend and interest income and certain expenses at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized gain (loss) from foreign currency related transactions includes gains and losses between trade and settlement dates on securities transactions, gains and losses arising from the sales of foreign currency and gains and losses between the ex-dividend and payment dates on dividends, interest and foreign withholding taxes. The effect of changes in foreign exchange rates on realized and unrealized gains or losses is reflected as a component of such gains or losses.

H.

Forward Currency Contracts — The Funds may enter into forward currency contracts in order to reduce their exposure to changes in foreign currency exchange rates on their foreign portfolio holdings and to lock in the U.S. dollar cost of assets and liabilities denominated in foreign currencies. A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the differences between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing of such contract is included in net realized gain or loss from foreign currency transactions.

At June 30, 2003 the Income and International Equity Funds had the following open forward currency contracts:

		Current		Unrealized
Foreign		Value		Appreciation
Currency		U.S. Dollar		(Depreciation)
INCOME FUND
Short Contracts:
Euro Currency
9,167,795 expiring 08/20/03	$	10,529,428	$	75,571
Swedish Krona
7,121,998 expiring 08/20/03	$	888,352		6,933
			$	82,504
Long Contract:
Euro Currency
1,600,600 expiring 08/20/03	$	1,837,638	$	(48,762)
Short Contract:
Canadian Dollar
863,018 expiring 08/20/03	$	634,619	$	(16,213)
			$	(64,975)
INTERNATIONAL EQUITY FUND
Short Contract:
Japanese Yen
530,730 expiring 07/01/03	$	4,428	$	(13)

51

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
	(UNAUDITED)

Notes to the Financial Statements (continued)

June 30, 2003

4. FUND SHARE TRANSACTIONS — The Trust is an open-end, diversified management investment company registered under the Investment Company Act of 1940. Shares are presently offered to HMLIC Separate Account and the HMLIC 401K Separate Account. The Equity Fund shares also may be purchased under the dividend reinvestment plan by certain shareholders.

Transactions in shares for the periods ended June 30, 2003 and December 31, 2002:

	Shares sold	Shares issued    to shareholders   in reinvestment   of dividends     and distributions	Shares redeemed	Net increase (decrease)
Equity Fund
06/30/2003	917,432	—	(1,880,810)	(963,378)
12/31/2002	2,610,976	379,571	(4,764,696)	(1,774,149)
Balanced Fund
06/30/2003	551,493	—	(1,160,503)	(609,010)
12/31/2002	1,202,988	509,543	(3,034,176)	(1,321,645)
Income Fund
06/30/2003	711,847	—	(828,536)	(116,689)
12/31/2002	1,390,498	560,583	(2,953,054)	(1,001,973)
Short-Term Investment Fund
06/30/2003	249,447	—	(290,157)	(40,710)
12/31/2002	586,244	6,574	(455,482)	137,336
Small Cap Growth Fund
06/30/2003	451,428	—	(432,408)	19,020
12/31/2002	987,784	—	(1,117,369)	(129,585)
International Equity Fund
06/30/2003	365,892	—	(325,027)	40,865
12/31/2002	759,983	1,409	(784,925)	(23,533)
Socially Responsible Fund
06/30/2003	369,971	—	(444,952)	(74,981)
12/31/2002	845,521	79,275	(1,121,287)	(196,491)

52

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
	(UNAUDITED)

Notes to the Financial Statements (continued)

June 30, 2003

5. MANAGEMENT AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES:

A. Horace Mann Educators Corporation (HMEC) is the parent company of Horace Mann Investors, Inc. (Investors) and Horace Mann Service Corporation (HMSC) and indirectly owns HMLIC. Collectively, these companies are referred to as Horace Mann. The Trust employs Wilshire Associates Incorporated (the "Adviser") to manage the investment and reinvestment of the assets of the Funds and to continuously review, supervise and administer the Fund's investment programs. The Adviser has entered into agreements with the following subadvisers: Equity Fund — Bernstein Investment Research and Management Unit of Alliance Capital Management, L.P., Mellon Equity Associates, LLP and Wellington Management Company, LLP; Income Fund — Western Asset Management Company and Western Asset Management Limited; Short-Term Investment Fund — Western Asset Management Company; Small Cap Growth Fund — BlackRock Financial Management, Inc. and Mazama Capital Management; International Equity Fund — Oechsle International Advisors, LLC; Socially Responsible Fund — Bernstein Investment Research and Management Unit of Alliance Capital Management, L.P. Each subadviser's fees are paid by the Adviser out of the advisory fees that it receives from each of the Funds. Fees paid to a subadviser of a Fund with multiple subadvisers depends upon the fee rate negotiated with the Adviser and upon the percentage of the Fund's assets allocated to that subadviser by the Adviser, which may vary from time to time. Thus, the basis for fees paid to any such subadviser is not constant, and the relative amounts of fees paid to the various subadvisers of a Fund will fluctuate. These internal fluctuations, however, will not affect the total advisory fees paid by a Fund, which will remain fixed on the terms described below. The Adviser may, however, determine in its discretion to waive a portion of its fee if internal fluctuations in the fee to be paid to the subadvisers results in excess profit to the Adviser. Because the Adviser will pay each subadviser's fees out of its own fees from the Funds, there will not be any "duplication" of advisory fees paid by the Funds. For the six months ended June 30, 2003, services provided and expenses assumed pursuant to the Investment Advisory Agreement, the Adviser received a fee based on each Fund's average daily net assets, computed daily and payable monthly, at the following annual rates. For the same period, the Adviser waived fees in the amounts listed below.

Fund	Rate		Fees waived
Equity Fund	0.400	%	$	77,802
Balanced Fund*	0.400			—
Income Fund	0.400			28,430
Short-Term Investment Fund	0.125			—
Small Cap Growth Fund	1.150			22,181
International Equity Fund	0.850			6,324
Socially Responsible Fund	0.700			57,865

 

* Balanced Fund operates under a "fund of funds" structure, primarily investing in shares of the Equity Fund and the Income Fund. Under the "fund of funds" arrangement, the Adviser receives directly from the Balanced Fund a fee of 0.400% of the average daily net assets of the Balanced Fund that are not invested in another Fund.

53

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
	(UNAUDITED)

Notes to the Financial Statements (continued)

June 30, 2003

B. Pursuant to an Administration Agreement with the Funds, Investors provides for the management of the business affairs of each Fund, including, but not limited to, office space, clerical services, bookkeeping and other similar services. The Balanced Fund is not charged and Investors does not receive an administration fee due to the "fund of funds" structure. For the six months ended June 30, 2003, Investors received a fee, accrued daily and paid monthly, based upon the combined assets for the Funds as follows:

Net Assets	Rate
On initial $1 billion	0.250%
Over $1 billion	0.200%

C. Pursuant to a Support Services Agreement, HMLIC provides certain services to the Funds necessary to coordinate the Funds' activities with those of the Separate Account of HMLIC. The Balanced Fund is not charged and HMLIC does not receive a support fee due to the "fund of funds" structure. For the six months ended June 30, 2003, HMLIC received a fee, accrued daily and paid monthly, based upon the combined assets for the Funds as follows:

Net Assets	Rate
On initial $1 billion	0.150%
Over $1 billion	0.100%

D.	Transfer and dividend disbursing agent services are provided by HMSC on a per account basis. The transfer agent fees for the six months ended June 30, 2003 were $14,818 for the Equity Fund, and $24 each for the Balanced, Income, Short-Term Investment, Small Cap Growth, International Equity and Socially Responsible Funds.
E.	The Trust pays each independent trustee a $3,000 annual retainer, $1,000 per board meeting attended, $2,000 committee retainer and $2,000 committee chairperson retainer. For the six months ended June 30, 2003, the fees, excluding travel expenses, for independent trustees totaled $28,000. The Trust does not compensate officers or trustees who are officers, directors, employees or holders of 5% or more of the outstanding voting securities of HMEC.
F.	Affiliated Broker — Brokerage commissions paid on investment transactions in the Equity Fund and Socially Responsible Fund for the six months ended June 30, 2003, amounted to $389,945, of which $23,982 was paid to Sanford C. Bernstein Co., an affiliate of the Funds' subadviser.

6.   SECURITY TRANSACTIONS — Security transactions, excluding short-term investments, for the six months ended June 30, 2003
      were:

Fund	Purchases	Proceeds from sales
Equity Fund	$       94,091,635	$      107,172,838
Balanced Fund	8,454,211	16,124,601
Income Fund	144,490,994	142,358,323
Short-Term Investment Fund	—	—
Small Cap Growth Fund	27,180,066	27,759,053
International Equity Fund	7,379,555	7,323,429
Socially Responsible Fund	6,776,345	7,740,663

54

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
	(UNAUDITED)

Notes to the Financial Statements (concluded)

June 30, 2003

The following table shows unrealized appreciation (depreciation) on investments, excluding foreign currency, at June 30, 2003.

		Aggregate gross		Aggregate gross		Net unrealized
		unrealized		unrealized		appreciation
Fund		appreciation		(depreciation)		(depreciation)
Equity Fund	$	49,268,208	$	(70,886,684)	$	(21,618,476)
Balanced Fund		7,232,529		(25,329,411)		(18,096,882)
Income Fund		10,769,997		(1,147,568)		9,622,429
Short-Term Investment Fund		9,462		(171)		9,291
Small Cap Growth Fund		7,474,431		(3,204,053)		(4,270,378)
International Equity Fund		2,071,733		(2,485,665)		(413,932)
Socially Responsible Fund		5,279,373		(7,168,068)		(1,888,695)

55

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
	(UNAUDITED)

Management of the Funds

A listing of the Trustees and Officers of the Trust, their ages, their principal occupations for the past five years and their affiliation with other companies affiliated with Horace Mann Life Insurance Company is presented below. The address of each Trustee and Officer is P.O. Box 4657, Springfield, Illinois 62708-4657.

Non-Interested Trustees
				Number of
				Portfolios
		Term of		in Fund	Other
	Position(s)	Office and		Complex	Directorships
	Held with	Length of	Principal Occupation(s)	Overseen	Held by
Name and Age	Fund	Time Served	During Past 5 Years	by Director	Director
A. Thomas Arisman, 56(1)	Trustee	Since 2002	Formerly President, Horace Mann	7	N/A
			Mutual Funds (2000-2002); formerly
			Senior Vice President, Horace Mann Life
			Insurance Company and Horace Mann
			Service Corporation (1989-2002);
			formerly Director and President,
			Horace Mann Investors, Inc.
			(1989-2002); formerly Trustee, Horace
			Mann Mutual Funds
			(1997, 1999-2000)
Roger A. Formisano, 54	Trustee	Since 2002	Professor of Executive Education,	7	Integrity
			UW-Madison School of Business;		Mutual
			Principal, R.A. Formisano & Company,		Insurance
			LLC; Executive Vice President and		Company
			Chief Operating Officer, United
			Wisconsin Services, Inc. (1992-1999)
Richard A. Holt, 62(2)	Trustee	Since 1998	Retired; formerly Senior Relationship	7	N/A
			Manager, Scudder Insurance Asset
			Management
Richard D. Lang, 71(1)	Trustee	Since 1997	Retired; formerly Executive Director,	7	N/A
			Vermont National Education Association
Harriet A. Russell, 61	Trustee	Since 1996;	Member, Cincinnati Board of Education;	7	Greater
		Trustee of	President, Greater Cincinnati Credit		Cincinnati
		Predecessor	Union; formerly teacher, Walnut		Credit
		Funds from	Hills High School		Union Board
		1992 to 1996
George J. Zock, 52(3)	Trustee and	Since 1996;	Executive Vice President, Horace Mann	7	Horace Mann
	Chairman	Trustee of	Life Insurance Company and Horace		Life Insurance
		Predecessor	Mann Service Corporation;		Company;
		Funds from	positions with Horace Mann Educators		Horace Mann
		1995 to 1996	Corporation and its subsidiaries		Service
					Corporation;
					Horace Mann
					Investors, Inc.

(1)	Mr. Arisman and Mr. Lang are shareholders of an affiliate of the Administrator of the Trust.
(2)	Mr. Holt employs the Bernstein Unit of Alliance Capital Management, subadviser to the Equity Fund and the Socially Responsible Fund, to manage assets that he controls.
(3)	Mr. Zock is an employee and shareholder of an affiliate of the Administrator of the Trust and, therefore, is considered an affiliate of the Administrator.

56

HORACE MANN MUTUAL FUNDS	2003 FUNDS SEMI-ANNUAL REPORT
	(UNAUDITED)

Officers
Name and Age	Position(s)  Held with   Fund	Term of Office and Length   of Time Served	Principal Occupation(s)   During Past 5 Years
Christopher M. Fehr, 33	President	Since 2002	President and Director, Horace Mann Investors, Inc.;
			and positions with Horace Mann Educators
			Corporation and its subsidiaries; Compliance Officer
			for Advance Trading, Inc. (2000-2002); Compliance
			Analyst for State Farm Insurance Company
			(1994-2000)
Ann M. Caparrós, 50	Secretary and Code of	Since 1996	Director, Vice President, General Counsel, Chief
	Ethics Officer		Compliance Officer and Corporate Secretary,
			Horace Mann Life Insurance Company and
			Horace Mann Service Corporation; Secretary,
			Horace Mann Investors, Inc.; and positions with
			Horace Mann Educators Corporation and its
			subsidiaries
Elizabeth E. Arthur, 49	Anti-Money	Since 2002	Officer and Associate General Counsel, Horace
	Laundering		Mann Service Corporation; and positions with
	Compliance Officer		Horace Mann Educators Corporation and its
			subsidiaries; Associate General Counsel, The
			Franklin Life Insurance Company (1997-2001)
Linda L. Sacco, 59	Assistant Secretary	Since 1987	Assistant Corporate Secretary, Horace Mann Life
			Insurance Company, Horace Mann Service
			Corporation, Horace Mann Investors, Inc.; and
			positions with Horace Mann Educators
			Corporation and its subsidiaries
Bret A. Conklin, 39	Controller	Since 2002	Senior Vice President and Controller, Horace Mann
			Life Insurance Company, Horace Mann Service
			Corporation, Horace Mann Investors, Inc.; and
			positions with Horace Mann Educators Corporation
			and its subsidiaries; Vice President Accounting
			Services, Kemper Insurance (2000-2002);
			Vice President and Controller, Horace Mann
			Educators Corporation and Horace Mann Life
			Insurance Company (1998-2000); Vice President and
			Controller, Pekin Insurance (1992-1998)
Angela S. Christian, 40	Treasurer	Since 2003	Vice President and Treasurer, Horace Mann Life
			Insurance Company, Horace Mann Service
			Corporation, Horace Mann Investors, Inc.; and
			positions with Horace Mann Educators Corporation
			and its subsidiaries; Assistant Vice President
			and Assistant Treasurer, Horace Mann Life
			Insurance Company, Horace Mann Service
			Corporation, Horace Mann Investors, Inc.; and
			positions with Horace Mann Educators Corporation
			and its subsidiaries (1997-2003)
Diane M. Barnett, 49	Tax Officer	Since 1995	Assistant Vice President, Tax Compliance Officer,
			Horace Mann Life Insurance Company, Horace
			Mann Service Corporation, Horace Mann Investors,
			Inc.; and positions with Horace Mann Educators
			Corporation and its subsidiaries

The Statement of Additional Information for the Horace Mann Mutual Funds includes additional information about the Trustees and Officers and is available without charge by calling
1-800-999-1030.

57

(THIS PAGE INTENTIONALLY LEFT BLANK)

Item 2. Code of Ethics.

Not required for the semi-annual report.

Item 3. Audit Committee Financial Expert.

Not required for the semi-annual report.

Item 4. Principal Accountant Fees and Services.

Not required for the semi-annual report.

Item 5. Audit Committee of Listed Registrants.

Not required for the semi-annual report.

Item 6. [Reserved]

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. [Reserved]

Item 9. Controls and Procedures.

(a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last 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.

Item 10. Exhibits.

(a)(1)	Not applicable.
(a)(2)	Section 302 Certifications are attached hereto.
(b)	Section 906 Certifications 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.

(Registrant):	Horace Mann Mutual Funds
By:	/s/ Christopher M. Fehr
	Christopher M. Fehr, President
Date:	August 22, 2003

Pursuant to the requirement 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.

By:	/s/ Christopher M. Fehr
	Christopher M. Fehr, President
Date:	August 22, 2003
By:	/s/ Bret A. Conklin
	Bret A. Conklin, Controller
Date:	August 22, 2003

N-CSR Form of Certification

I, Christopher M. Fehr, certify that:

1. I have reviewed this report on Form N-CSR of the Horace Mann 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 officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act) 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)	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
   (c)	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 officers and I have disclosed to the 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 control 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: August 22, 2003 /s/ Christopher M. Fehr                          
    Christopher M. Fehr
President- Horace Mann Mutual Funds

N-CSR Form of Certification

I, Bret Conklin, certify that:

1. I have reviewed this report on Form N-CSR of the Horace Mann 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 officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act) 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)	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
   (c)	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 officers and I have disclosed to the 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 control 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: August 22, 2003 /s/ Bret A. Conklin                          
     Bret A. Conklin
Controller- Horace Mann Mutual Funds

N-CSR Form of Section 906 Certification

       The following certification is provided by the undersigned Chief Executive Officer and Chief Financial Officer of the Horace Mann Mutual Funds on the basis of such officers' knowledge and belief for the sole purpose of complying with 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

CERTIFICATION

       In connection with the Semi-Annual Report of Horace Mann Mutual Funds (the "Company") on Form N-CSR for the period ended June 30, 2003 as filed with the Securities and Exchange Commission on Form N-CSR (the "Report"), we, Christopher M. Fehr and Bret A. Conklin, Chief Executive Officer and Chief Financial Officer, respectively, of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
   
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Christopher M. Fehr                          

Name: Christopher M. Fehr
Title:    President (Chief Executive Officer)
Date:   August 22, 2003

/s/ Bret A. Conklin                                

Name: Bret A. Conklin
Title:    Controller (Chief Financial Officer)
Date:   August 22, 2003