Registration Statement

485BPOS 1 abypro.htm Registration Statement

As Filed with the Securities and Exchange
Commission on February 28, 2003
1933 Act File No. 2-25984
1940 Act File No. 811-1467
============================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]

Pre-Effective Amendment No. [ ]

Post-Effective Amendment No. 74 [X]
and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]

Amendment No. 53 [X]
(Check appropriate box or boxes.)

THE LUTHERAN BROTHERHOOD FAMILY OF FUNDS
----------------------------------------
(Exact Name of Registrant)

625 Fourth Avenue South, Minneapolis, Minnesota 55415
-----------------------------------------------------
(Address of Principal Executive Offices)

(612) 340-7005
------------------------------
(Registrant's Telephone Number)

John C. Bjork, Secretary
The Lutheran Brotherhood Family of Funds
625 Fourth Avenue South
Minneapolis, Minnesota 55415
--------------------------------------------------
(Name and Address of Agent for Service of Process)

Approximate date of proposed public offering:

It is proposed that this filing will become effective under Rule 485 (check
appropriate box):

[ ] Immediately upon filing pursuant to paragraph (b)

[X] On March 1, 2003 pursuant to paragraph (b)

[ ] 60 days after filing pursuant to paragraph (a)(1)

[ ] On (date) pursuant to paragraph (a)(1)

[ ] 75 days after filing pursuant to paragraph (a)(2)

[ ] On (date) pursuant to paragraph (a)(2).

If appropriate check the following box:

[ ] This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.

THE LUTHERAN BROTHERHOOD FAMILY OF FUNDS

PROSPECTUS March 1, 2003

LUTHERAN BROTHERHOOD OPPORTUNITY GROWTH FUND
LUTHERAN BROTHERHOOD MID CAP GROWTH FUND
LUTHERAN BROTHERHOOD WORLD GROWTH FUND
LUTHERAN BROTHERHOOD GROWTH FUND
LUTHERAN BROTHERHOOD FUND
LUTHERAN BROTHERHOOD VALUE FUND
LUTHERAN BROTHERHOOD HIGH YIELD FUND
LUTHERAN BROTHERHOOD INCOME FUND
LUTHERAN BROTHERHOOD MUNICIPAL BOND FUND
LUTHERAN BROTHERHOOD LIMITED MATURITY BOND FUND
LUTHERAN BROTHERHOOD MONEY MARKET FUND

CLASS A AND CLASS B SHARES

The Securities and Exchange Commission has not approved or disapproved
these securities or determined if this prospectus is truthful or complete. Any
representation to the contrary is a criminal offense.

TABLE OF CONTENTS

PAGE

The Funds
Lutheran Brotherhood Opportunity Growth Fund
Lutheran Brotherhood Mid Cap Growth Fund
Lutheran Brotherhood World Growth Fund
Lutheran Brotherhood Growth Fund
Lutheran Brotherhood Fund
Lutheran Brotherhood Value Fund
Lutheran Brotherhood High Yield Fund
Lutheran Brotherhood Income Fund
Lutheran Brotherhood Municipal Bond Fund
Lutheran Brotherhood Limited Maturity Bond Fund
Lutheran Brotherhood Money Market Fund

Management
Investment Adviser
Portfolio Managers
Personal Securities Investments
Advisory Fees

Shareholder Information
Pricing Funds' Shares
Choosing a Class of Shares
Class A Shares
Class B Shares
Buying Shares
Redeeming Shares
The LB Money Market Fund Checks (Class A Shares Only)
VISA CheckCard
Accounts with Low Balances
Exchanging Shares Between Funds

Distributions

Taxes

Other Securities and Investment Practices

Optimum(R) Account

Financial Highlights

THE FUNDS

LUTHERAN BROTHERHOOD OPPORTUNITY GROWTH FUND

INVESTMENT OBJECTIVE

The investment objective of the Lutheran Brotherhood Opportunity Growth Fund ("LB Opportunity Growth Fund") is to
achieve long-term growth of capital.

PRINCIPAL STRATEGIES

The principal strategy for achieving this objective is to invest in common stocks of companies with small market
capitalizations. Under normal market conditions, the LB Opportunity Growth Fund invests at least 65% of its assets in companies
that fall within the range of companies included in the Russell 2000 Index at the time of the Fund's investment. Although market
capitalizations are constantly changing, as of December 31, 2002, the Russell 2000 Index included companies with capitalizations
between $5.5 million and $2.4 billion.

Thrivent Investment Management Inc. ("Thrivent Investment Mgt."), the Fund's investment adviser, uses both fundamental and
technical investment research techniques to determine what stocks to buy and sell. Thrivent Investment Mgt. focuses on companies
that have a strong record of earnings growth or show good prospects for growth in sales and earnings and also considers the trends
in the market as a whole.

[BEGIN CALLOUT]
Fundamental investment analysis generally involves assessing a company's or security's value based on factors such as sales,
assets, markets, management, products and services, earnings, and financial structure.

Technical analysis generally involves studying trends and movements in a security's price, trading volume, and other
market-related factors in an attempt to discern patterns.
[END CALLOUT]

LB Opportunity Growth Fund may sell securities for a variety of reasons, such as to secure gains, limit losses, or reposition
assets into more promising opportunities.

PRINCIPAL RISKS

The LB Opportunity Growth Fund's principal risks are the risks generally of stock investing. They include the risk of
sudden and unpredictable drops in the value of the market as a whole and periods of lackluster performance. Stock markets can
decline for many reasons, including adverse political or economic developments, changes in investor psychology, or heavy
institutional selling. The prospects for an industry or company may deteriorate because of a variety of factors, including
disappointing earnings or changes in the competitive environment.

Growth style investing includes the risk of investing in securities whose prices historically have been more volatile than
other securities, especially over the short term. Growth stock prices reflect projections of future earnings or revenues, and if a
company's earnings or revenues fall short of expectations, its stock price may fall dramatically.

In addition, LB Opportunity Growth Fund will be invested in smaller companies with shorter histories and less seasoned
operations. Smaller, less seasoned companies often have greater price volatility, lower trading volume, and less liquidity than
larger, more established companies. These companies tend to be more dependent on the success of limited product lines and have
less experienced management and financial resources.

For these and other reasons, LB Opportunity Growth Fund may underperform other stock funds (such as large company stock
funds) when stocks of small or growth companies are out of favor.

The success of the LB Opportunity Growth Fund's investment strategy depends significantly on Thrivent Investment Mgt.'s skill
in assessing the potential of the securities in which the Fund invests. Shares of LB Opportunity Growth Fund will rise and fall
in value and there is a risk that you could lose money by investing in the Fund. The LB Opportunity Growth Fund cannot be certain
that it will achieve its objective.

VOLATILITY AND PERFORMANCE

The bar chart and table shown below provide an indication of the risks of investing in the LB Opportunity Growth Fund by
showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for one and five
years and since inception compared to a broad-based securities market index.

The bar chart includes the effects of Fund expenses, but not sales charges. If sales charges were included, returns would be
lower than those shown.

The table includes the effects of Fund expenses and maximum sales charges for each class, and assumes that you sold your
shares at the end of the period. The after-tax returns for Class A shares of the Fund are calculated using the historical highest
individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns
depend on an investor's tax situation and may differ from those shown below, and after-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax
returns are shown for only Class A shares of the Fund, and after-tax returns for Class B shares will vary.

The Fund commenced operations on January 8, 1993, and the bar chart includes performance from before the creation of share
classes on October 31, 1997. Prior to October 31, 1997, the shares of the Fund had no specific class designation. As of that
date, all of the outstanding shares were redesignated as Class A shares. If the returns for Class A shares reflected their
current shareholder servicing fee of 0.25% per year, the returns would be lower than those shown. How a Fund has performed in the
past (before and after taxes) is not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN (CLASS A)]

Annual
Year Return

1994 2.66%
1995 37.71%
1996 12.16%
1997 -0.41%
1998 -4.26%
1999 27.07%
2000 -7.42%
2001 -19.57%
2002 -32.30%

Best Quarter: Q4 '99 +26.26%
Worst Quarter: Q1 '01 -23.06%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
Since Since
Inception Inception
of Fund of Class B
1-Year 5-Year (1/8/93) (10/31/97)

LB Opportunity Growth
Fund (Class A)
Before taxes -36.01% -10.34% 1.35% N/A
After taxes on distributions -36.01% -10.60% -0.06% N/A
After taxes on distribution and
redemptions -22.11% -7.73% 0.85% N/A

LB Opportunity Growth Fund (Class B) -35.42% -9.97% N/A -11.06%

Russell 2000 -20.47% -1.23% 7.24% -1.05

The Russell 2000 is an unmanaged index which measures the performance of the 2,000 smallest companies in the Russell 3000
Index (an index of the 3,000 largest companies based on market capitalization).

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB Opportunity Growth Fund.(1)

SHAREHOLDER FEES (fees paid directly from your investment)

CLASS A SHARES CLASS B SHARES
-------------- --------------
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price) 5.5% None
Maximum Deferred Sales Charge (Load)
(as a percentage of net asset value at time of
purchase or redemption, whichever is lower) 1.0%(2) 5%

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)

CLASS A CLASS B
------- -------
Management Fees 0.46% 0.46%
Distribution (12b-1) Fees None 0.75%
Other Expenses (including a 0.25% 1.38% 1.38%
shareholder servicing fee)
Total Annual Fund Operating Expenses 1.83% 2.59%

(1) The maximum sales charges for the Fund depends upon the amount of your investment and whether you buy Class A shares or Class
B shares. For a complete description of the sales charges, see "Choosing a Class of Shares." In addition, the Funds may redeem
shares in any account or charge an annual fee of $12 (a "small account fee") if the value of shares in the account falls below a
certain minimum. See "Accounts with Low Balances." The Funds also may charge a fee of up to $30 for a redemption by wire. See
"Redeeming Shares."
(2) When you invest $1,000,000 or more, a contingent deferred sales charge of 1% will apply to shares redeemed within one year.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the
end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating
expenses remain the same. FOR CLASS B SHARES, IT ALSO ASSUMES THE AUTOMATIC CONVERSION TO CLASS A SHARES AFTER FIVE YEARS.
Although your actual costs may be higher or lower, based on these assumptions your costs would BE:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $727 $1,097 $1,491 $2,590
Class B shares $762 $1,105 $1,475 $2,497

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $727 $1,097 $1,491 $2,590
Class B shares $262 $ 805 $1,375 $2,497

LUTHERAN BROTHERHOOD MID CAP GROWTH FUND

INVESTMENT OBJECTIVE

The investment objective of the Lutheran Brotherhood Mid Cap Growth Fund ("LB Mid Cap Growth Fund") is to achieve
long-term growth of capital.

PRINCIPAL STRATEGIES

The principal strategy for achieving this objective is to invest in common stocks of companies with medium market
capitalizations. Under normal market conditions, the LB Mid Cap Growth Fund invests at least 80% of its net assets (plus the amount
of any borrowing for investment purposes) in companies that fall within the range of companies included in the Standard & Poor's MidCap 400 Index at the
time of the Fund's investment. Although market capitalizations are constantly changing, as of December 31, 2002, the S&P MidCap 400
included companies with capitalizations between $132.5 million and $7.3 billion.

Thrivent Investment Mgt., the Fund's investment adviser, uses both fundamental and technical investment research techniques
to determine what stocks to buy and sell. (Fundamental investment analysis and technical investment analysis are defined on page
3.) Thrivent Investment Mgt. focuses on companies that have a strong record of earnings growth or show good prospects for growth
in sales and earnings and also considers the trends in the market as a whole.

LB Mid Cap Growth Fund may sell securities for a variety of reasons, such as to secure gains, limit losses, or reposition
assets into more promising opportunities.

PRINCIPAL RISKS

The LB Mid Cap Growth Fund's principal risks are the risks generally of stock investing. They include the risk of
sudden and unpredictable drops in the value of the market as a whole and periods of lackluster performance. Stock markets can
decline for many reasons, including adverse political or economic developments, changes in investor psychology, or heavy
institutional selling. The prospects for an industry or company may deteriorate because of a variety of factors, including
disappointing earnings or changes in the competitive environment.

In addition, medium-sized companies often have greater price volatility, lower trading volume, and less liquidity than
larger, more-established companies. These companies tend to have smaller revenues, narrower product lines, less management depth
and experience, smaller shares of their product or service markets, fewer financial resources, and less competitive strength than
larger companies.

For these and other reasons, LB Mid Cap Growth Fund may underperform other stock funds (such as large company stock funds)
when stocks of medium-sized companies are out of favor.

The success of the Fund's investment strategy depends significantly on Thrivent Investment Mgt.'s skill in assessing the
potential of the securities in which the Fund invests. Shares of LB Mid Cap Growth Fund will rise and fall in value and there is
a risk that you could lose money by investing in the Fund. The LB Mid Cap Growth Fund cannot be certain that it will achieve its
objective.

VOLATILITY AND PERFORMANCE

The bar chart and table shown below provide an indication of the risks of investing in the LB Mid Cap Growth Fund by showing
changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for one and five years
and since inception compared to a broad-based securities market index.

The bar chart includes the effects of Fund expenses, but not sales charges. If sales charges were included, returns would be
lower than those shown.

The Fund commenced operations on May 30, 1997. Prior to October 31, 1997, the shares of the Fund had no specific class
designation. As of that date, all of the outstanding shares were redesignated as Class A shares. If the returns for Class A
shares reflected their current shareholder servicing fee of 0.25% per year, the returns would be lower than those shown. How a
Fund has performed in the past (before and after taxes) is not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN (CLASS A)]

Annual
Year Return

1998 11.55%
1999 48.23%
2000 12.01%
2001 -20.63%
2002 -26.15%

Best Quarter: Q4 '99 +34.20%
Worst Quarter: Q1 '01 -24.10%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
Since Since
Inception Inception
of Fund of Class B
1-Year 5-Year (5/30/97) (10/31/97)

LB Mid Cap Growth Fund (Class A)
Before taxes -30.24% 0.51% 2.60% N/A
After taxes on distributions -30.24% -6.19% 1.53% N/A
After taxes on distribution and
redemptions -18.56% 0.34% 1.81% N/A

LB Mid Cap Growth Fund (Class B) -29.65% 0.92% N/A 1.01%

S&P MidCap 400 Index -14.51% 6.41% 9.27% 7.29%

The S&P MidCap 400 Index is an unmanaged index which measures the performance of 400 widely held common stocks of mid-cap
companies.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB Mid Cap Growth Fund.(1)

SHAREHOLDER FEES (fees paid directly from your investment)

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)

CLASS A CLASS B
------- -------
Management Fees 0.43% 0.43%
Distribution (12b-1) Fees None 0.75%
Other Expenses (including a 0.25% 1.46% 1.46%
shareholder servicing fee)
Total Annual Fund Operating Expenses 1.89% 2.64%

(1) The maximum sales charges for the Fund depends upon the amount of your investment and whether you buy Class A shares or Class
B shares. For a complete description of the sales charges, see "Choosing a Class of Shares." In addition, the Funds may redeem
shares in any account or charge an annual fee of $12 (a "small account fee") if the value of shares in the account falls below a
certain minimum. See "Accounts with Low Balances." The Funds also may charge a fee of up to $30 for a redemption by wire. See
"Redeeming Shares."
(2) When you invest 1,000,000 or more, a contingent deferred sales charge of 1% will apply to shares redeemed within one year.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $731 $1,111 $1,515 $2,640
Class B shares $767 $1,120 $1,500 $2,548

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $731 $1,111 $1,515 $2,640
Class B shares $267 $ 820 $1,400 $2,548

LUTHERAN BROTHERHOOD WORLD GROWTH FUND

INVESTMENT OJBECTIVE

The investment objective of the Lutheran Brotherhood World Growth Fund ("LB World Growth Fund") is to seek total return
from long-term growth of capital.

PRINCIPAL STRATEGIES

The LB World Growth Fund seeks to achieve its objective by investing primarily (at least 65%) in common stocks of
established non-U.S. companies. The Fund expects to diversify broadly among developed and emerging countries throughout the world.

Stock selection reflects a growth style. While stocks may be purchased without regard to a company's market capitalization,
the focus typically will be on large and, to a lesser extent, medium-sized, companies. In determining the appropriate distribution
of investments among various countries and geographic regions, T. Rowe Price International, Inc. ("Price International"), the
Fund's subadviser, employs in-depth fundamental research in an effort to identify companies capable of achieving and sustaining
above-average, long-term earnings growth. (Fundamental investment analysis is defined on page 3.) Price International seeks to
purchase such stocks at reasonable prices in relation to present or anticipated earnings, cash flow, or book value, and valuation
factors often influence its allocations among large-, mid-, or small-cap shares.

While Price International invests with an awareness of the global economic backdrop and its outlook for industry sectors and
individual countries, bottom-up stock selection is the focus of its decision-making. Country allocation is driven largely by
stock selection, though the subadviser may limit investments in markets that appear to have poor overall prospects.

In selecting stocks, Price International generally favors companies with one or more of the following characteristics:

* Leading market position
* Attractive business niche
* Strong franchise or natural monopoly
* Technological leadership or proprietary advantages
* Seasoned management
* Earnings growth and cash flow sufficient to support growing
dividends
* Healthy balance sheet with relatively low debt

While LB World Growth Fund invests primarily in common stocks, to a lesser extent it may also purchase other instruments and
securities, including foreign currency and foreign currency exchange contracts, futures and options, in keeping with the Fund's
objective.

LB World Growth Fund may sell securities for a variety of reasons, such as to secure gains, limit losses, or reposition
assets into more promising opportunities.

PRINCIPAL RISKS

LB World Growth Fund's principal risks are the risks generally of stock investing. They include the risk of sudden and
unpredictable drops in the value of the market as a whole and periods of lackluster performance. Stock markets can decline for
many reasons, including adverse political or economic developments, changes in investor psychology, or heavy institutional
selling. The prospects for an industry or company may deteriorate because of a variety of factors, including disappointing
earnings or changes in the competitive environment.

Stocks of non-U.S. companies in which LB World Growth Fund invests generally carry more risk than stocks of U.S. companies.
One of the most important is currency risk. This refers to a decline in the value of a foreign currency versus the U.S. dollar,
which reduces the dollar value of securities denominated in that currency. The overall impact on LB World Growth Fund's holdings
can be significant, unpredictable and long-lasting, depending on the currencies represented in the portfolio and how each one
appreciates or depreciates in relation to the U.S. dollar, and whether currency positions are hedged.

The economies and financial markets of certain regions - such as Latin America and Asia - can be highly interdependent and
may decline all at the same time.

Other risks result from the varying stages of economic and political development of foreign countries, the differing
regulatory environments, trading days and accounting standards of non-U.S. markets, and higher transaction costs.

LB World Growth Fund's investment in any country could be subject to actions such as capital or currency controls,
nationalizing a company or industry, expropriating assets, or imposing punitive taxes which would have an adverse effect on
security prices and impair LB World Growth Fund's ability to repatriate capital or income. These risks are usually greater in
emerging markets. The economic and political structures of developing nations, in most cases, do not compare favorably with the
U.S. or other developed countries in terms of wealth and stability, and their financial markets often lack liquidity. Fund
performance will likely be negatively affected by portfolio exposure to nations in the midst of hyperinflation, currency
devaluation, trade disagreements, sudden political upheaval or interventionist government policies. Significant buying or selling
actions by a few major investors may also heighten the volatility of emerging markets. These factors make investing in such
countries significantly riskier than in other countries and any one of them could cause the Fund's share price to decline.

For these and other reasons, LB World Growth Fund may underperform other stock funds (such as U.S. stock funds) when
international stocks are out of favor.

The success of the Fund's investment strategy depends significantly on Price International's skill in assessing the potential
of the securities in which the Fund invests. Shares of LB World Growth Fund will rise and fall in value and there is a risk that
you could lose money by investing in the Fund. The LB World Growth Fund cannot be certain that it will achieve its objective.

VOLATILITY AND PERFORMANCE

The bar chart and table shown below provide an indication of the risks of investing in the LB World Growth Fund by showing
changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for one and five years
and since inception compared to a broad-based securities market index.

The bar chart includes the effects of Fund expenses, but not sales charges. If sales charges were included, returns would be
lower than those shown.

The Fund commenced operations on September 5, 1995, and the bar chart includes performance from before the creation of share
classes on October 31, 1997. Prior to October 31, 1997, the shares of the Fund had no specific class designation. As of that
date, all of the outstanding shares were redesignated as Class A shares. If the returns for Class A shares reflected their
current shareholder servicing fee of 0.25% per year, the returns would be lower than those shown. How a Fund has performed in the
past (before and after taxes) is not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN (CLASS A)]

Annual
Year Return

1996 13.43%
1997 2.17%
1998 15.72%
1999 32.64%
2000 -17.13%
2001 -21.83%
2002 -18.39%

Best Quarter: Q4 '99 +24.13%
Worst Quarter: Q3 '02 -21.77%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
Since Since
Inception Inception
of Fund of Class B
1-Year 5-Years (9/5/95) (10/31/97)

LB World Growth Fund (Class A)
Before taxes -22.91% -5.78% -1.15% N/A
After taxes on distributions -22.91% -5.63% -1.58% N/A
After taxes on distribution and
redemptions -14.07% -3.95% -0.79% N/A

LB World Growth Fund (Class B) -22.31% -4.80% N/A -4.68%

Morgan Stanley EAFE Index -15.94% -2.89% 2.79% 1.14%

The Morgan Stanley EAFE (Europe and Australasia, Far East Equity) is an unmanaged index which measures the performance of
international companies screened for liquidity, cross-ownership, and industry representation.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB World Growth Fund.(1)

SHAREHOLDER FEES (fees paid directly from your investment)

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)

CLASS A CLASS B
------- -------
Management Fees 0.83% 0.83%
Distribution (12b-1) Fees None 0.75%
Other Expenses (including a 0.25% 1.55% 1.65%
shareholder servicing fee)
Total Annual Fund Operating Expenses 2.38% 3.23%

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $778 $1,252 $1,751 $3,117
Class B shares $826 $1,295 $1,788 $3,075

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $778 $1,252 $1,751 $3,117
Class B shares $326 $ 995 $1,688 $3,075

LUTHERAN BROTHERHOOD GROWTH FUND

INVESTMENT OBJECTIVE

The investment objective of the Lutheran Brotherhood Growth Fund ("LB Growth Fund") is to achieve long-term growth of
capital.

PRINCIPAL STRATEGIES

The principal strategy for achieving this objective is to invest primarily (at least 65%) in the common stocks of growth
companies with large market capitalizations. The Fund invests primarily in stocks of companies that Thrivent Investment Mgt., the
Fund's investment adviser, believes have demonstrated and will sustain above-average earnings growth over time, or which are
expected to develop rapid sales and earnings growth in the future when compared to the economy and stock market as a whole.
Thrivent Investment Mgt. defines companies with large market capitalizations according to the market capitalization classifications
published by Lipper, Inc. Although market capitalizations are constantly changing, based on Lipper's guidelines as of December 31,
2002, companies with large market capitalizations are those with market capitalizations of at least $8.7 billion.

Thrivent Investment Mgt. uses both fundamental and technical investment research techniques to determine what stocks to buy
and sell. (Fundamental investment analysis and technical investment analysis are defined on page 3.)

LB Growth Fund may sell securities for a variety of reasons, such as to secure gains, limit losses, or reposition assets into
more promising opportunities.

PRINCIPAL RISKS

The LB Growth Fund's principal risks are the risks generally of stock investing. They include the risk of sudden and
unpredictable drops in the value of the market as a whole and periods of lackluster performance. Stock markets can decline for
many reasons, including adverse political or economic developments, changes in investor psychology, or heavy institutional
selling. The prospects for an industry or company may deteriorate because of a variety of factors, including disappointing
earnings or changes in the competitive environment.

In addition, the prices of larger company stocks may not rise as quickly or as significantly as prices of stocks of
well-managed smaller companies when stocks of larger companies are out of favor.

For these and other reasons, LB Growth Fund may underperform other stock funds.

The success of the Fund's investment strategy depends significantly on Thrivent Investment Mgt.'s skill in assessing the
potential of the securities in which the Fund invests. Shares of LB Growth Fund will rise and fall in value and there is a risk
that you could lose money by investing in the Fund. The LB Growth Fund cannot be certain that it will achieve its objective.

VOLATILITY AND PERFORMANCE

The bar chart and table shown below provide an indication of the risks of investing in the LB Growth Fund by showing changes
in the Fund's performance from year to year and by showing how the Fund's average annual returns for a one-year period and since
inception compared to a broad-based securities market index.

The bar chart includes the effects of Fund expenses, but not sales charges. If sales charges were included, returns would be
lower than those shown.

The LB Growth Fund commenced operations on October 29, 1999. How a Fund has performed in the past (before and after taxes)
is not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN (CLASS A)]

Annual
Year Return

2000 -14.36%
2001 -24.33%
2002 -30.14%

Best Quarter: Q4 '01 +13.54%
Worst Quarter: Q1 '01 -21.65%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
Since
Inception
1-Year (10/29/99)

LB Growth Fund (Class A)
Before taxes -33.97% -19.79%
After taxes on distributions -33.97% -19.79%
After taxes on distribution and
redemptions -20.86% -14.98%

LB Growth Fund (Class B) -33.41% -19.46%

S&P 500/Barra Growth Index -23.58% -15.70%

The S&P 500/Barra Growth Index measures the performance of the growth style of investing in large cap U.S. stocks. The index is
constructed by dividing the stocks in the S&P 500 Index according to the price-to-book ratios. The S&P 500/Barra Growth Index
contains stocks with higher price-to-book ratios.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB Growth Fund.(1)

SHAREHOLDER FEES (fees paid directly from your investment)

CLASS A SHARES CLASS B SHARES
-------------- --------------
Maximum Sales Charge (Load) Imposed On Purchases
(as a percentage of offering price) 5.5 None
Maximum Deferred Sales Charge (Load)
(as a percentage of net asset value at time of
purchase or redemption, whichever is lower) 1.0%(2) 5%

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)

CLASS A CLASS B
------- -------
Management Fees 0.42% 0.42%
Distribution (12b-1) Fees None 0.75%
Other Expenses (including a 0.25% 2.12% 2.12%
shareholder servicing fee)
Total Annual Fund Operating Expenses (3) 2.54% 3.29%

(2) When you invest $1,000,000 or more, a contingent deferred sales charge of 1% will apply to shares redeemed within one year.

(3) Thrivent Investment Mgt. has voluntarily agreed to temporarily waive a portion of its advisory fees and to bear certain
expenses associated with operating LB Growth Fund equal in the aggregate to 1.25% of the average daily net assets of LB Growth
Fund. With this waiver and expense offset provision, the Total Annual Fund Operating Expenses would be 1.29% for the Class A
shares and 2.04% for the Class B shares. This temporary waiver and expense offset provision may be discontinued at any time.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the
end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating
expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would BE:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $793 $1,297 $1,826 $3,267
Class B shares $832 $1,313 $1,817 $3,187

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $793 $1,297 $1,826 $3,267
Class B shares $332 $1,013 $1,717 $3,187

LUTHERAN BROTHERHOOD FUND

INVESTMENT OBJECTIVE

The investment objective of the Lutheran Brotherhood Fund ("LB Fund") is to seek growth of capital and income.

PRINCIPAL STRATEGIES

The principal strategy for achieving this objective is to invest in the common stocks of leading U.S. companies. The Fund
invests primarily (at least 65%) in stocks of companies with large market capitalizations, which Thrivent Investment Mgt. believes
have balance sheet strength and profitability. Thrivent Investment Mgt., the Fund's investment adviser, defines companies with
large market capitalizations according to the market capitalization classifications published by Lipper, Inc. Although market
capitalizations are constantly changing, based on Lipper's guidelines as of December 31, 2002, companies with large market
capitalizations are those with market capitalizations of at least $8.7 billion.

Thrivent Investment Mgt. uses fundamental and technical investment research techniques to identify stocks of companies that
it believes have a leading position and successful business strategy within their industry. (Fundamental investment analysis and
technical investment analysis are defined on page 3.) Thrivent Investment Mgt. seeks to invest in companies with a strong
management team that will develop business strategies which lead to sales and earnings growth and improving relative stock value.

LB Fund may sell securities for a variety of reasons, such as to secure gains, limit losses, or reposition assets into more
promising opportunities.

PRINCIPAL RISKS

LB Fund's principal risks are the risks generally of stock investing. They include the risk of sudden and unpredictable
drops in the value of the market as a whole and periods of lackluster performance. Stock markets can decline for many reasons,
including adverse political or economic developments, changes in investor psychology, or heavy institutional selling. The
prospects for an industry or company may deteriorate because of a variety of factors, including disappointing earnings or changes
in the competitive environment.

In addition, the prices of larger company stocks may not rise as quickly or as significantly as prices of stocks of
well-managed smaller companies.

For these and other reasons, LB Fund may underperform other stock funds (such as small company or medium company stock funds)
when larger company stocks are out of favor.

The success of the Fund's investment strategy depends significantly on Thrivent Investment Mgt.'s skill in assessing the
potential of the securities in which the Fund invests. Shares of LB Fund will rise and fall in value and there is a risk that you
could lose money by investing in the Fund. The LB Fund cannot be certain that it will achieve its objective.

VOLATILITY AND PERFORMANCE

The bar chart and table shown below provide an indication of the risks of investing in the LB Fund by showing changes in the
Fund's performance from year to year and by showing how the Fund's average annual returns for one, five, and ten years (or since
inception if less than ten years) compared to a broad-based securities market index.

The bar chart includes the effects of Fund expenses, but not sales charges. If sales charges were included, returns would be
lower than those shown.

The Fund commenced operations on June 2, 1970, and the bar chart includes performance from before the creation of share
classes on October 31, 1997. Prior to October 31, 1997, the shares of the Fund had no specific class designation. As of that
date, all of the outstanding shares were redesignated as Class A shares. If the returns for Class A shares reflected their
current shareholder servicing fee of 0.25% per year, the returns would be lower than those shown. How a Fund has performed in the
past (before and after taxes) is not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN (CLASS A)]

Annual
Year Return

1993 8.69%
1994 -3.41%
1995 32.04%
1996 17.22%
1997 27.90%
1998 23.30%
1999 20.50%
2000 -9.68%
2001 -17.40%
2002 -24.59%

Best Quarter: Q4 '98 +22.54%
Worst Quarter: Q3 '02 -18.28%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
Since
Inception
of Class B
1-Year 5-Years 10-Years (10/31/97)

LB Fund (Class A)
Before taxes -28.73% -4.61% 5.08% N/A
After taxes on distributions -28.75% -5.82% 3.18% N/A
After taxes on distribution and
redemptions -17.64% -3.25% 3.90% N/A

LB Fund (Class B) -28.12% -4.22% N/A -3.21%

S&P 500 Index -22.10% -0.59% 9.35% 0.64%

The S&P 500 Index is an unmanaged index which measures the performance of 500 widely held common stocks of large-cap
companies.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB Fund.(1)

SHAREHOLDER FEES (fees paid directly from your investment)

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)

CLASS A CLASS B
------- -------
Management Fees 0.37% 0.37%
Distribution (12b-1) Fees None 0.75%
Other Expenses (including a 0.25% 0.72% 0.72%
shareholder servicing fee)
Total Annual Fund Operating Expenses 1.09% 1.84%

(2) When you invest $1,000,000 or more, a contingent deferred sales charge of 1% will apply to shares redeemed within one year.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $655 $878 $1,118 $1,806
Class B shares $687 $879 $1,095 $1,697

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $655 $878 $1,118 $1,806
Class B shares $187 $579 $ 995 $1,697

LUTHERAN BROTHERHOOD VALUE FUND

INVESTMENT OBJECTIVE

The investment objective of the Lutheran Brotherhood Value Fund ("LB Value Fund") is to achieve long-term growth of
capital.

PRINCIPAL STRATEGIES

The principal strategy for achieving this objective is to invest primarily (at least 65%) in the common stocks of
undervalued companies with large market capitalizations. Thrivent Investment Mgt., the Fund's investment adviser, defines
companies with large market capitalizations according to the market capitalization classifications published by Lipper, Inc.
Although market capitalizations are constantly changing, based on Lipper's guidelines as of December 31, 2002, companies with large
market capitalizations are those with market capitalizations of at least $8.7 billion.

Thrivent Investment Mgt. uses both fundamental and technical investment research techniques to identify stocks of companies
that it believes are undervalued in relation to their long-term earnings power or asset value. These stocks typically, but not
always, have below average price-to-earnings and price-to-book value ratios. (Fundamental investment analysis and technical
investment analysis are defined on page 3.)

[BEGIN CALLOUT]
The price-to-earnings (P/E) ratio represents the price of a stock divided by its earnings per share. In general, the higher the
P/E, the greater the expectations are for earnings growth.

The price-to-book ratio represents the price of a stock divided by its net asset value. The price/book ratio can be a guide in
determining the value of a stock.
[END CALLOUT]

The Fund will invest primarily in U.S. companies, although it may also invest in foreign companies.

LB Value Fund may sell securities for a variety of reasons, such as to secure gains, limit losses, or reposition assets into
more promising opportunities.

PRINCIPAL RISKS

The LB Value Fund's principal risks are the risks generally of stock investing. They include the risk of sudden and
unpredictable drops in the value of the market as a whole and periods of lackluster performance. Stock markets can decline for
many reasons, including adverse political or economic developments, changes in investor psychology, or heavy institutional
selling. The prospects for an industry or company may deteriorate because of a variety of factors, including disappointing
earnings or changes in the competitive environment.

There is also a risk that stocks of undervalued companies may not rise as quickly as anticipated if the market doesn't
recognize their intrinsic value or if value stocks are out of favor. In addition, the prices of larger company stocks may not
rise as quickly or as significantly as prices of stocks of well-managed smaller companies.

For these and other reasons, LB Value Fund may underperform other stock funds.

The success of the Fund's investment strategy depends significantly on Thrivent Investment Mgt.'s skill in assessing the
potential of the securities in which the Fund invests. Shares of LB Value Fund will rise and fall in value and there is a risk
that you could lose money by investing in the Fund. The LB Value Fund cannot be certain that it will achieve its objective.

VOLATILITY AND PERFORMANCE

The bar chart and table shown below provide an indication of the risks of investing in the LB Value Fund by showing changes
in the Fund's performance from year to year and by showing how the Fund's average annual returns for a one-year period and since
inception compared to a broad-based securities market index.

The bar chart includes the effects of Fund expenses, but not sales charges. If sales charges were included, returns would be
lower than those shown.

The LB Value Fund commenced operations on October 29, 1999. How a Fund has performed in the past (before and after taxes) is
not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN (CLASS A)]

Annual
Year Return

2000 1.92%
2001 -9.53%
2002 -23.38%

Best Quarter: Q4 '01 +8.63%
Worst Quarter: Q3 '02 -17.63%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
Since
Inception
1-Year (10/29/99)

LB Value Fund (Class A)
Before taxes -27.61% -10.74%
After taxes on distributions -27.74% -10.87%
After taxes on distribution and
redemptions -16.95% -8.42%

LB Value Fund (Class B) -27.02% -10.43%

S&P 500/Barra Value Index -20.86% -8.12%

The S&P 500/Barra Value Index measures the performance of the value style of investing in large cap U.S. stocks. The index
is constructed by dividing the stocks in the S&P 500 Index according to price-to-book ratios. The S&P 500/Barra Value Index
contains stocks with lower price-to-book ratios.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB Value Fund.(1)

SHAREHOLDER FEES (fees paid directly from your investment)

CLASS A SHARES CLASS B SHARES
-------------- --------------
Maximum Sales Charge (Load) Imposed On Purchases
(as a percentage of offering price) 5.5% None
Maximum Deferred Sales Charge (Load)
(as a percentage of net asset value at time of
purchase or redemption, whichever is lower) 1.0%(2) 5%

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)

CLASS A CLASS B
------- -------
Management Fees 0.40% 0.40%
Distribution (12b-1) Fees None 0.75%
Other Expenses (including a 0.25% 1.62% 1.62%
shareholder servicing fee)
Total Annual Fund Operating Expenses (3) 2.02% 2.77%

(2) When you invest $1,000,000 or more, a contingent deferred sales charge of 1% will apply to shares redeemed within one year.

(3) Thrivent Investment Mgt. has voluntarily agreed to temporarily waive a portion of its advisory fees and to bear certain
expenses associated with operating LB Value Fund equal in the aggregate to 0.80% of the average daily net assets of LB Value
Fund. With this waiver and expense offset provision, the Total Annual Fund Operating Expenses would be 1.22% for the Class A
shares and 1.97% for the Class B shares. This temporary waiver and expense offset provision may be discontinued at any time.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the
end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating
expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would BE:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $744 $1,149 $1,578 $2,769
Class B shares $780 $1,159 $1,564 $2,679

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $744 $1,149 $1,578 $2,769
Class B shares $280 $859 $1,464 $2,679

LUTHERAN BROTHERHOOD HIGH YIELD FUND

INVESTMENT OBJECTIVE

The investment objective of the Lutheran Brotherhood High Yield Fund ("LB High Yield Fund") is to obtain high current
income, and, secondarily, growth of capital.

PRINCIPAL STRATEGIES

Under normal market conditions, the LB High Yield Fund invests at least 80% of its net assets (plus the amount of any
borrowing for investment purposes) in high-yield, high-risk bonds, notes, debentures and other debt obligations or preferred stocks.
These securities are commonly known as "junk bonds." At the time of purchase these securities are rated within or below the "BB"
major rating category by Standard & Poor's Corporation or the "Ba" major rating category by Moody's Investor Services, Inc. or are
unrated but considered to be of comparable quality by Thrivent Investment Mgt., the Fund's investment adviser. Should Thrivent
Investment Mgt. determine that the Fund would benefit from reducing the percentage of invested assets from 80% to a lesser amount,
you will be notified at least 60 days prior to such a change.

Thrivent Investment Mgt. uses fundamental investment research techniques to determine what securities to buy and sell.
(Fundamental investment analysis is defined on page 3.) Thrivent Investment Mgt. focuses on companies which it believes have or
are expected to achieve adequate cash flows or access to capital markets for the payment of principal and interest obligations.
Thrivent Investment Mgt. generally purchases bonds with a 10-year maturity, although it may purchase bonds with a shorter or
longer maturity.

PRINCIPAL RISKS

The principal risks of LB High Yield Fund include the tendency of high-yield, high-risk bond prices to fall when the economy is
sluggish or overall corporate earnings are weak. During those times, it may become difficult for issuers of high-yield bonds to
generate sufficient cash flow or to obtain adequate access to capital markets to pay principal or interest. For all bonds, there
is a risk that an issuer will default. High-yield bonds, however, are more susceptible to the risk of default and their prices
usually fall if a number of issuers, or a high profile issuer, default or go bankrupt or if the market anticipates either of those
events.

The price of LB High Yield Fund shares also may be affected by weak equity markets, when issuers of high-yield, high-risk bonds
generally find it difficult to improve their financial condition by replacing debt with equity. In addition, many high yield
securities are traded only among institutional investors, and it may be difficult for Thrivent Investment Mgt. to sell the Fund's
portfolio investments at fair prices when high-yield bonds fall out of favor with those investors.

Generally, when interest rates rise, bond prices fall, which may cause the price of shares of LB High Yield Fund to fall as
well. Bonds with longer durations and maturities tend to be more sensitive to changes in interest rates than bonds with shorter
durations or maturities. In general, the prices at which lower quality bonds are traded before they mature may be more affected by
the financial health of the issuer and the economy and less by changes in interest rates.

[BEGIN CALLOUT]
Maturity is a measure of the remaining time before the bond must be repaid.

Duration is a measure of the effective, as opposed to the actual, maturity of a fixed-income security. Duration considers the
bond's cash flows and the time value of money.
[END CALLOUT]

The success of the Fund's investment strategy depends significantly on Thrivent Investment Mgt.'s skill in assessing the
potential of the securities in which the Fund invests. Shares of LB High Yield Fund will rise and fall in value and there is a
risk that you could lose money by investing in the Fund. The LB High Yield Fund cannot be certain that it will achieve its
objective.

VOLATILITY AND PERFORMANCE

The bar chart and table shown below provide an indication of the risks of investing in the LB High Yield Fund by showing
changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for one, five, and ten
years compared to a broad-based securities market index.

The bar chart includes the effects of Fund expenses, but not sales charges. If sales charges were included, returns would be
lower than those shown.

The Fund commenced operations on April 3, 1987, and the bar chart includes performance from before the creation of share
classes on October 31, 1997. Prior to October 31, 1997, the shares of the Fund had no specific class designation. As of that
date, all of the outstanding shares were redesignated as Class A shares. If the returns for Class A shares reflected their
current shareholder servicing fee of 0.25% per year and, the returns would be lower than those shown. How a Fund has performed in
the past (before and after taxes) is not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN (CLASS A)]

Annual
Year Return

1993 20.86%
1994 -5.29%
1995 19.38%
1996 10.96%
1997 13.47%
1998 -1.94%
1999 7.05%
2000 -16.31%
2001 -1.73%
2002 -6.98%

Best Quarter: Q3 '97 +6.91%
Worst Quarter: Q4 '00 -12.10%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
Since
Inception
of Class B
1-Year 5-Years 10-Years (10/31/97)

LB High Yield Fund (Class A)
Before taxes -11.21% -5.17% 2.81% N/A
After taxes on distributions -14.63% -9.05% -1.20% N/A
After taxes on distribution and
redemptions -6.83% -5.57% 0.51% N/A

LB High Yield Fund (Class B) -10.87% -4.96% N/A -4.63%

Lehman High Yield Index -1.41% 0.38% 5.86% 0.72%

The Lehman High Yield Index is an unmanaged index which measures the performance of fixed-rate non-investment grade bonds.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB High Yield Fund.(1)

SHAREHOLDER FEES (fees paid directly from your investment)

CLASS A SHARES CLASS B SHARES
-------------- --------------
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price) 4.5% None
Maximum Deferred Sales Charge (Load)
(as a percentage of net asset value at time of
purchase or redemption, whichever is lower) 1.0%(2) 5%

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)

CLASS A CLASS B
------- -------
Management Fees 0.39% 0.39%
Distribution (12b-1) Fees None 0.75%
Other Expenses (including a 0.25% 0.64% 0.64%
shareholder servicing fee)
Total Annual Fund Operating Expenses 1.03% 1.78%

(2) When you invest $1,000,000 or more, a contingent deferred sales charge of 1% will apply to shares redeemed within one year.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $550 $763 $ 993 $1,653
Class B shares $681 $860 $1,064 $1,631

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $550 $763 $993 $1,653
Class B shares $181 $560 $964 $1,631

LUTHERAN BROTHERHOOD INCOME FUND

INVESTMENT OBJECTIVE.

The investment objective of the Lutheran Brotherhood Income Fund ("LB Income Fund") is to seek high current income while
preserving principal. The Fund's secondary investment objective is to obtain long-term growth of capital in order to maintain
investors' purchasing power.

PRINCIPAL STRATEGIES

The LB Income Fund invests primarily in investment-grade corporate bonds, government bonds, and mortgage-backed
securities. Under normal conditions, at least 65% of the Fund's assets will be invested in debt securities or preferred stock at
least in the "Baa" major rating category by Moody's or at least in the "BBB" major rating category by S&P or unrated securities
considered to be of comparable quality by Thrivent Investment Mgt., the Fund's investment adviser.

The Fund may also invest in high-yield, high risk bonds, notes, debentures and other debt obligations or preferred stock
commonly known as "junk bonds." At the time of purchase these securities are rated within or below the "BB" major rating category
by S&P or the "Ba" major rating category by Moody's or are unrated but considered to be of comparable quality by Thrivent
Investment Mgt.

Thrivent Investment Mgt. uses fundamental investment research techniques to determine what debt obligations to buy and sell.
(Fundamental investment analysis is defined on page 3.) Thrivent Investment Mgt. focuses on companies which it believes are
financially sound and have strong cash flow, asset values, and interest or dividend earnings.

PRINCIPAL RISKS

The LB Income Fund's principal risks are those of debt investing, including increases in interest rates and loss of
principal. Generally, when interest rates rise, bond prices fall, which may cause the price of shares of LB Income Fund to fall
as well. Bond prices fall because bonds issued after rates rise will offer higher yields, making older bonds with lower rates
less attractive. To raise the effective yield on older bonds, holders of the older bonds must discount their prices. Bonds with
longer durations and maturities tend to be more sensitive to changes in interest rates than bonds with shorter durations or
maturities. (Duration and maturity are defined on page 15.)

[BEGIN CALLOUT]
Effective yield on a bond is determined by the purchase price, the stated rate of interest on the bond, the time between interest
payments, and the time until maturity.
[END CALLOUT]

In addition, mortgage-backed securities are sensitive to changes in the redemption patterns of the underlying securities. If
the principal payment on the underlying asset is repaid faster or slower than the holder of the mortgage-backed security
anticipates, the price of the security may fall, especially if the holder must reinvest the repaid principal at lower rates or
must continue to hold the securities when interest rates rise.

For all bonds there is a risk that an issuer will default. High-yield, high-risk bonds generally are more susceptible to risk
of default than higher rated bonds. In addition, it may be difficult for Thrivent Investment Mgt. to sell high-yield bond
investments in certain markets or market environments when high-yield bonds fall out of favor. For the LB Income Fund, these risks
increase as Thrivent Investment Mgt. increases the percentage of the Fund's portfolio in high-yield bonds.

The success of the Fund's investment strategy depends significantly on Thrivent Investment Mgt.'s skill in assessing the
potential of the securities in which the Fund invests. Shares of LB Income Fund will rise and fall in value and there is a risk
that you could lose money by investing in the Fund. The LB Income Fund cannot be certain that it will achieve its goal.

VOLATILITY AND PERFORMANCE

The bar chart and table shown below provide an indication of the risks of investing in the LB Income Fund by showing changes
in the Fund's performance from year to year and by showing how the Fund's average annual returns for one, five, and ten years (or
since inception if less than ten years) compared to a broad-based securities market index.

The bar chart includes the effects of Fund expenses, but not sales charges. If sales charges were included, returns would be
lower than those shown.

The Fund commenced operations on June 1, 1972, and the bar chart includes performance from before the creation of share
classes on October 31, 1997. Prior to October 31, 1997, the shares of the Fund had no specific class designation. As of that
date, all of the outstanding shares were redesignated as Class A shares. If the returns for Class A shares reflected their
current shareholder servicing fee of 0.25% per year, the returns would be lower than those shown. How a Fund has performed in the
past (before and after taxes) is not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN (CLASS A)]

Annual
Year Return

1993 10.12%
1994 -4.86%
1995 18.82%
1996 2.21%
1997 8.36%
1998 8.90%
1999 -2.48%
2000 10.22%
2001 7.01%
2002 4.92%

Best Quarter: Q2 '95 +6.69%
Worst Quarter: Q1 '94 -3.97%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
Since
Inception
of Class B
1-Year 5-Years 10-Years (10/31/97)

LB Income Fund (Class A)
Before taxes 0.19% 4.64% 5.64% N/A
After taxes on distributions -1.65% 2.29% 2.98% N/A
After taxes on distribution and
redemptions 0.08% 2.51% 3.13% N/A

LB Income Fund (Class B) 0.14% 4.84% N/A 4.86%

Lehman Aggregate Bond Index 10.25% 7.55% 7.51% 7.60%

The Lehman Aggregate Bond Index is an unmanaged index which measures the performance of U.S. investment grade bonds.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB Income Fund.(1)

SHAREHOLDER FEES (fees paid directly from your investment)

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)

CLASS A CLASS B
------- -------
Management Fees 0.34% 0.34%
Distribution (12b-1) Fees None 0.75%
Other Expenses (including a 0.25% 0.55% 0.55%
shareholder servicing fee)
Total Annual Fund Operating Expenses 0.89% 1.64%

(2) When you invest $1,000,000 or more, a contingent deferred sales charge of 1% will apply to shares redeemed within one year.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $537 $721 $921 $1,497
Class B shares $667 $817 $992 $1,473

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $537 $721 $921 $1,497
Class B shares $167 $517 $892 $1,473

LUTHERAN BROTHERHOOD MUNICIPAL BOND FUND

INVESTMENT OBJECTIVE

The investment objective of the Lutheran Brotherhood Municipal Bond Fund ("LB Municipal Bond Fund") is to provide its
shareholders with a high level of current income which is exempt from federal income tax.

PRINCIPAL STRATEGIES

The LB Municipal Bond Fund tries to provide you with high current income which is exempt from federal income taxation by
investing in municipal bonds, which are debt obligations issued by states, territories, and possessions of the United States and
their political subdivisions or agencies. Consistent with the fundamental investment objective of the Fund, under normal market
conditions, the LB Municipal Bond Fund invests at least 80% of its net assets (plus the amount of any borrowing for investment
purposes) in municipal bonds.

Thrivent Investment Mgt., the Fund's investment adviser, uses fundamental investment research techniques to determine what
municipal bonds to buy and sell. (Fundamental investment analysis is defined on page 3.) Thrivent Investment Mgt. focuses on
investment-grade municipal bonds of issuers that it believes are financially sound and have healthy balance sheets, strong
operating income, and good economic prospects.

PRINCIPAL RISKS

The LB Municipal Bond Fund's principal risks are those of debt investing, including increases in interest rates and loss
of principal. Generally, when interest rates rise, bond prices fall, which may cause the price of shares of LB Municipal Bond
Fund to fall as well. Bond prices fall because bonds issued after rates rise will offer higher yields, making older bonds with
lower rates less attractive. To raise the effective yield on older bonds, holders of the older bonds must discount their prices.
Bonds with longer durations and maturities tend to be more sensitive to changes in interest rates than bonds with shorter
durations or maturities. (Effective yield is defined on page 17, and duration and maturity are defined on page 15.)

The Fund's performance may be affected by political and economic conditions at the state, regional or federal level. These
may include budgetary problems, declines in the tax base and other factors that may cause rating agencies to downgrade the credit
ratings on certain issues. Actual or proposed changes in tax rates, regulations or federal programs could also affect your net
return on investment.

The success of the Fund's investment strategy depends significantly on Thrivent Investment Mgt.'s skill in assessing the
potential of the securities in which the Fund invests. Shares of LB Municipal Bond Fund will rise and fall in value and there is
a risk that you could lose money by investing in the Fund. The LB Municipal Bond Fund cannot be certain that it will achieve its
objective.

VOLATILITY AND PERFORMANCE

The bar chart and table shown below provide an indication of the risks of investing in the LB Municipal Bond Fund by showing
changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for one, five, and ten
years (or since inception if less than ten years) compared to a broad-based securities market index.

The bar chart includes the effects of Fund expenses, but not sales charges. If sales charges were included, returns would be
lower than those shown.

The Fund commenced operations on December 3, 1976, and the bar chart includes performance from before the creation of
share classes on October 31, 1997. Prior to October 31, 1997, the shares of the Fund had no specific class designation. As of
that date, all of the outstanding shares were redesignated as Class A shares. If the returns for Class A shares reflected their
current shareholder servicing fee of 0.25% per year, the returns would be lower than those shown. How a Fund has performed in the
past (before and after taxes) is not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN (CLASS A)]

Annual
Year Return

1993 12.97%
1994 -6.57%
1995 18.18%
1996 3.44%
1997 9.34%
1998 6.19%
1999 -3.05%
2000 11.74%
2001 4.94%
2002 8.78%

Best Quarter: Q1 '95 +7.50%
Worst Quarter: Q1 '94 -6.34%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
Since
Inception
of Class B
1-Year 5-Years 10-Years (10/31/97)

LB Municipal Bond Fund (Class A)
Before taxes 3.86% 4.64% 5.87% N/A
After taxes on distributions 3.84% 4.63% 5.79% N/A
After taxes on distribution and
redemptions 4.23% 4.67% 5.70% N/A

LB Municipal Bond Fund (Class B) 3.87% 4.80% N/A 5.09%

Lehman Municipal Bond Index 9.60% 6.06% 6.71% 6.28%

The Lehman Municipal Bond Index is an unmanaged index which measures the performance of investment grade tax-exempt bonds.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB Municipal Bond Fund.(1)

SHAREHOLDER FEES (fees paid directly from your investment)

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)

CLASS A CLASS B
------- -------
Management Fees 0.32% 0.32%
Distribution (12b-1) Fees None 0.75%
Other Expenses (including a 0.25% 0.41% 0.41%
shareholder servicing fee)
Total Annual Fund Operating Expenses 0.73% 1.48%

(2) When you invest $1,000,000 or more, a contingent deferred sales charge of 1% will apply to shares redeemed within one year.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $521 $673 $838 $1,316
Class B shares $651 $768 $908 $1,291

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $521 $673 $838 $1,316
Class B shares $151 $468 $808 $1,291

LUTHERAN BROTHERHOOD LIMITED MATURITY BOND FUND

INVESTMENT OBJECTIVE

The investment objective of the Lutheran Brotherhood Limited Maturity Bond Fund ("LB Limited Maturity Bond Fund") is to
seek a high level of current income consistent with stability of principal.

PRINCIPAL STRATEGIES

The LB Limited Maturity Bond Fund invests primarily in investment-grade corporate bonds, government bonds, municipal
bonds, asset-backed securities, and mortgage-backed securities. The average dollar-weighted portfolio maturity for the Fund is
expected to be between one and five years. Under normal market conditions, LB Limited Maturity Bond Fund invests at least 80% of
its net assets (plus the amount of any borrowing for investment purposes) in debt securities or preferred stock in at least the
"Baa" major rating category by Moody's or at least in the "BBB" major rating category by S & P or unrated securities considered to
be of comparable quality by Thrivent Investment Mgt., the Fund's investment adviser. Should Thrivent Investment Mgt. determine that
the Fund would benefit from reducing the percentage of invested assets from 80% to a lesser amount, you will be notified at least
60 days prior to such a change.

[BEGIN CALLOUT]
The average dollar-weighted maturity of the Fund is determined by calculating the average maturity of each debt security owned by
the Fund, weighting each security according to the amount that it represents in the Fund. In addition, for asset-backed and
mortgage-backed securities, as well as bonds with required prepayments or redemption rights, the calculation considers the
expected prepayments of the underlying securities and/or the present value of a mandatory stream of prepayments.
[END CALLOUT]

The Fund may also invest in high-yield, high-risk bonds, notes, debentures and other debt obligations or preferred stock
commonly known as "junk bonds." At the time of purchase these securities are rated within or below the "BB" major rating category
by S&P or the "Ba" major rating category by Moody's or are unrated but considered to be of comparable quality by Thrivent
Investment Mgt.

Thrivent Investment Mgt. uses both fundamental and technical investment research techniques to determine what debt
obligations to buy and sell. (Fundamental investment analysis and technical investment analysis are defined on page 3.) Thrivent
Investment Mgt. focuses on companies that it believes are financially sound and have strong cash flow, asset values and interest
or dividend earnings.

PRINCIPAL RISKS

The LB Limited Maturity Bond Fund's principal risks are those of debt investing, including increases in interest rates
and loss of principal. Generally, when interest rates rise, bond prices fall, which may cause the price of shares of LB Limited
Maturity Bond Fund to fall as well. Bond prices fall because bonds issued after rates rise will offer higher yields, making older
bonds with lower rates less attractive. To raise the effective yield on older bonds, holders of the older bonds must discount
their prices. Bonds with longer durations and maturities tend to be more sensitive to changes in interest rates than bonds with
shorter durations or maturities. (Effective yield is defined on page 17, and duration and maturity are defined on page 15.)

In addition, both mortgage-backed and asset-backed securities are sensitive to changes in the redemption patterns of the
underlying securities. If the principal payment on the underlying asset is repaid faster or slower than the holder of the
asset-backed or mortgage-backed security anticipates, the price of the security may fall, especially if the holder must reinvest
the repaid principal at lower rates or must continue to hold the securities when interest rates rise.

For all bonds there is a risk that an issuer will default. Lower rated and high-yield, high-risk bonds generally are more
susceptible to risk of default than higher rated bonds. In addition, it may be difficult for Thrivent Investment Mgt. to sell
high-yield bond investments in certain markets or market environments when high-yield bonds fall out of favor. For the LB Limited
Maturity Bond Fund, these risks increase as Thrivent Investment Mgt. increases the percentage of the Fund's portfolio in lower
rated investment-grade bonds or in high-yield bonds.

The success of the Fund's investment strategy depends significantly on Thrivent Investment Mgt.'s skill in assessing the
potential of the securities in which the Fund invests. Shares of LB Limited Maturity Bond Fund will rise and fall in value and
there is a risk that you could lose money by investing in the Fund. The LB Limited Maturity Bond Fund cannot be certain that it
will achieve its objective.

VOLATILITY AND PERFORMANCE

The bar chart and table shown below provide an indication of the risks of investing in the LB Limited Maturity Bond Fund by
showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for a one-year
period and since inception compared to a broad-based securities market index.

The bar chart includes the effects of Fund expenses, but not sales charges. If sales charges were included, returns would be
lower than those shown. The after-tax returns for Class A shares of the Fund are calculated using the historical highest
individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns
depend on an investor's tax situation and may differ from those shown below, and after-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax
returns are shown for only Class A shares of the Fund, and after-tax returns for Class B shares will vary.

The table includes the effects of Fund expenses and maximum sales charges for each class, and assumes that you sold your
shares at the end of the period.

The LB Limited Maturity Bond Fund commenced operations on October 29, 1999. How a Fund has performed in the past (before and
after taxes) is not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN (CLASS A)]

Annual
Year Return

2000 7.98%
2001 8.02%
2002 4.88%

Best Quarter: Q1 '01 +3.36%
Worst Quarter: Q1 '02 +0.17%

Average Annual Total Returns
(periods ending
December 31, 2002)
--------------------------
Since
Inception
1-Year (10/29/99)

LB Limited Maturity Bond Fund (Class A)
Before taxes 4.88% 6.51%
After taxes on distributions 3.50% 4.28%
After taxes on distribution and
redemptions 2.98% 4.10%

LB Limited Maturity Bond Fund (Class B)
4.88% 6.51%

Lehman Government Corporate 1-5 Year Bond 5.70% 8.03%

The Lehman Government Corporate 1-5 Year Bond is an unmanaged index which measures the performance of corporate and
government U.S. bonds with maturities of 1-5 years.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of LB Limited Maturity Bond Fund.(1)

SHAREHOLDER FEES (fees paid directly from your investment)

CLASS A SHARES CLASS B SHARES
-------------- --------------
Maximum Sales Charge (Load) Imposed On Purchases
(as a percentage of offering price) None None
Maximum Deferred Sales Charge (Load)
(as a percentage of net asset value at time of
purchase or redemption, whichever is lower) None None(1)

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)

CLASS A CLASS B
------- -------
Management Fees 0.30% 0.30%
Other Expenses (including a 0.25% 0.75% 0.75%
shareholder servicing fee)
Total Annual Fund Operating Expenses (2) 1.05% 1.05%

(1) Class B shares of the LB Limited Maturity Bond Fund are offered solely in exchange for Class B shares of other Funds of The
Lutheran Brotherhood Family of Funds. Class B shareholders of the LB Limited Maturity Bond Fund will be responsible for any
Contingent Deferred Sales Charge that may be payable at the time of redemption as a result of an investment in another Fund. In
addition, the Funds may redeem shares in any account or charge an annual fee of $12 (a "small account fee") if the value of shares
in the account falls below a certain minimum. See "Accounts with Low Balances." The Funds also may charge a fee of up to $30 for a
redemption by wire. See "Redeeming Shares."

(2) Thrivent Investment Mgt. has voluntarily agreed to temporarily waive a portion of its advisory fees and to bear certain
expenses associated with operating the Class A shares of LB Limited Maturity Bond Fund equal in the aggregate to 0.20% of the
average daily net assets of the Class A shares of LB Limited Maturity Bond Fund. With this waiver and expense offset provision,
the Total Annual Fund Operating Expenses would be 0.85% for the Class A shares. This temporary waiver and expense offset
provision may be discontinued at any time.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the
end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating
expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would BE:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $107 $334 $579 $1,283
Class B shares $107 $334 $579 $1,283

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $107 $334 $579 $1,283
Class B shares $107 $334 $579 $1,283

LUTHERAN BROTHERHOOD MONEY MARKET FUND

INVESTMENT OBJECTIVE

The investment objective of the Lutheran Brotherhood Money Market Fund ("LB Money Market Fund") is current income
consistent with stability of principal.

PRINCIPAL STRATEGIES

The LB Money Market Fund tries to produce current income while preserving the value of your shares by investing in high
quality, short-term money market instruments that mature in 397 days or less, including U.S. dollar-denominated commercial paper,
bank instruments such as certificates of deposit, U.S. government discount notes, and U.S. Treasury Bills.

Thrivent Investment Mgt., the Fund's investment adviser, uses fundamental investment research techniques to determine what
money market instruments to buy and sell. (Fundamental investment analysis is defined on page 3.) Under normal market conditions,
the Fund invests primarily in prime commercial paper. Thrivent Investment Mgt. looks for prime commercial paper issued by
corporations which it believes are financially sound, have strong cash flows, and solid capital levels, are leaders in their
industry and have experienced management.

Thrivent Investment Mgt. manages LB Money Market Fund subject to strict rules established by the Securities and Exchange
Commission that are designed so that LB Money Market Fund may maintain a stable $1.00 share price. Those guidelines generally
require LB Money Market Fund to, among other things, invest only in high quality securities that generally are diversified with
respect to issuers, are denominated in U.S. dollars and have short remaining maturities. In addition, the guidelines require LB
Money Market Fund to maintain a dollar-weighted average portfolio maturity of not more than 90 days.

Under the guidelines, at least 95% of LB Money Market Fund's total assets must be invested in "first tier" securities.
First-tier securities must be rated by at least two rating agencies in their highest short-term major rating categories (or one,
if only one rating agency has rated the security, or if they have not received a short-term rating, determined by Thrivent
Investment Mgt. to be of comparable quality). First-tier securities generally include U.S. Government securities, such as U.S.
Treasury bills and securities issued or sponsored by U.S. government agencies. They also may include corporate debt securities,
finance company commercial paper and certain obligations of U.S. and foreign banks.

The remainder of LB Money Market Fund's assets will be invested in securities rated within the two highest rating categories
by any two rating agencies (or one, if only one rating agency has rated the security or, if unrated, determined by Thrivent
Investment Mgt. to be of comparable quality), or kept in cash.

PRINCIPAL RISKS

The LB Money Market Fund's principal risks are those that could affect the yield of its shares. They include those
factors that could cause short-term interest rates to decline, such as a weak economy, strong equity markets and changes by the
Federal Reserve in its monetary policies.

The success of the Fund's investment strategy depends significantly on Thrivent Investment Mgt.'s skill in assessing the
potential of the securities in which the Fund invests.

An investment in the LB Money Market Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00
per share, it is possible to lose money by investing in the Fund.

VOLATILITY AND PERFORMANCE

The bar chart and table shown below provide an indication of the risks of investing in the LB Money Market Fund by showing
changes in the Fund's performance from year to year and by showing the Fund's average annual returns for one, five, and ten
years. The bar chart and table include the effects of Fund expenses and assume that you sold your shares at the end of the
period.

The Fund commenced operations on February 1, 1979, and the bar chart includes performance from before the creation of share
classes on October 31, 1997. Prior to October 31, 1997, the shares of the Fund had no specific class designation. As of that
date, all of the outstanding shares were redesignated as Class A shares. If the returns for Class A shares reflected their
current shareholder servicing fee of 0.25% per year, the returns would be lower than those shown. How a Fund has performed in the
past is not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN (CLASS A)]

Annual
Year Return

1993 2.20%
1994 3.28%
1995 5.00%
1996 4.60%
1997 4.81%
1998 4.73%
1999 4.35%
2000 5.60%
2001 3.45%
2002 0.93%

Best Quarter: Q4 '00 +1.44%
Worst Quarter: Q4 '02 +0.20%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
Since
Inception
of Class B
1-Year 5-Years 10-Years (10/31/97)

LB Money Market Fund (Class A) 0.93% 3.79% 3.89% N/A

LB Money Market Fund (Class B) 0.94% 3.80% N/A 3.83%

You may call 1-800-328-4552 to obtain the Fund's current 7-day yield.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB Money Market Fund.(1)

SHAREHOLDER FEES (fees paid directly from your investment)

CLASS A SHARES CLASS B SHARES
-------------- --------------
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price None None
Maximum Deferred Sales Charge (Load)
(as a percentage of net asset value at time of
purchase or redemption, whichever is lower) None None(1)

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)

CLASS A CLASS B
------- -------
Management Fees 0.24% 0.24%
Other Expenses (including a 0.25% 0.75% 0.75%
shareholder servicing fee)
Total Annual Fund Operating Expenses (2) 0.99% 0.99%

(1) Class B shares of the LB Money Market Fund are offered solely in exchange for Class B shares of other Funds of The Lutheran
Brotherhood Family of Funds. Class B shareholders of the LB Money Market Fund will be responsible for any Contingent Deferred
Sales Charge that may be payable at the time of redemption as a result of an investment in another Fund. In addition, the Funds may
redeem shares in any account or charge an annual fee of $12 (a "small account fee") if the value of shares in the account falls
below a certain minimum. See "Accounts with Low Balances." The Funds also may charge a fee of up to $30 for a redemption by wire.
See "Redeeming Shares."

(2) Thrivent Investment Mgt. has voluntarily agreed to temporarily waive a portion of its advisory fees equal in the aggregate to
0.10% of the average daily net assets of the Class A shares and 0.15% of the average daily net assets of the Class B shares of LB
Money Market Fund. With this waiver, the Total Annual Fund Operating Expenses would be 0.89% for the Class A shares and 0.84% for
the Class B shares. This temporary waiver may be discontinued at any time.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $101 $315 $547 $1,213
Class B shares $101 $315 $547 $1,213

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Class A shares $101 $315 $547 $1,213
Class B shares $101 $315 $547 $1,213

MANAGEMENT

INVESTMENT ADVISER

Thrivent Investment Mgt., 625 Fourth Avenue South, Minneapolis, Minnesota 55415, serves as investment adviser for each of the
Funds. Thrivent Investment Mgt. and its affiliates have been in the investment advisory business since 1970 and managed
approximately $57.2 billion in assets as of December 31, 2002, including approximately $10.7 billion in mutual fund assets.
Thrivent Investment Mgt. provides investment research and supervision of the Funds' investments.

Thrivent Investment Mgt. provides investment research and supervision of the assets for each of the Funds, except the LB World
Growth Fund. For the LB World Growth Fund (the "Subadvised Fund"), Thrivent Investment Mgt. establishes the overall investment
strategy and evaluates, selects and recommends, subject to the approval of the Board of Trustees of the Fund, one or more
subadvisers to manage the investments of the Subadvised Fund. Thrivent Investment Mgt. also allocates assets to the subadvisers,
monitors the performance, security holdings and investment strategies of the subadvisers and, when appropriate, researches any
potential new subadviser for the Funds. Thrivent Investment Mgt. has ultimate responsibility to oversee the subadvisers and
recommend their hiring, termination and replacement.

PORTFOLIO MANAGERS

LB Opportunity Growth Fund

Andrea J. Thomas has served as the portfolio manager of LB Opportunity Growth Fund since 2002. She also serves as portfolio
manager of the Opportunity Growth Portfolio, a series of an affiliated mutual fund group. Ms. Thomas has been with Thrivent
Investment Mgt. since 1993 and served as an associate portfolio manager from 1997 to 2002.

LB Mid Cap Growth Fund

Brian L. Thorkelson has served as the portfolio manager of LB Mid Cap Growth Fund since the Fund's inception in 1997. Mr.
Thorkelson also has served as portfolio manager of the Mid Cap Growth Portfolio, a series of an affiliated mutual fund group. Mr.
Thorkelson has been with Thrivent Investment Mgt. since 1987.

LB World Growth Fund

Thrivent Investment Mgt. has engaged Price International, 100 East Pratt Street, Baltimore, Maryland 21202, as investment
subadviser for LB World Growth Fund. Price International is one of the world's largest international mutual fund asset managers
with the U.S. equivalent of about $18.0 billion under management as of December 31, 2002 in its offices in Baltimore, London,
Tokyo, Singapore, Paris, Hong Kong, and Buenos Aires. Price International has an investment advisory group that has day-to-day
responsibility for managing the Fund and developing and executing the Fund's investment program.

LB Growth Fund

Scott A. Vergin has served as the portfolio manager of LB Growth Fund since 2002. Mr. Vergin also has served as portfolio
manager of the following series of affiliated mutual fund groups: AAL Aggressive Growth Portfolio since 2002; The AAL Aggressive
Growth Fund since 2002; and the Growth Portfolio since 1994. Mr. Vergin has been with Thrivent Investment Mgt. since 1984.

LB Fund

Frederick L. Plautz has served as the portfolio manager of LB Fund since 2002. Mr. Plautz also serves as a portfolio
manager of the following series of affiliated mutual fund groups: AAL Capital Growth Portfolio since 2001; The AAL Balanced Fund
since 1997; and The AAL Capital Growth Fund since 1995. Mr. Plautz has been with Thrivent Investment Mgt. since 1995.

LB Value Fund

Lewis A. Bohannon has served as the portfolio manager of LB Value Fund since 2002. He also has served as portfolio manager
of the following series of affiliated mutual fund groups: Value Portfolio since 2002; AAL Equity Income Portfolio since 2001; and
The AAL Equity Income Fund since 1995. Mr. Bohannon has been with Thrivent Investment Mgt. since 1995.

LB High Yield Fund

Paul J. Ocenasek and Mark L. Simenstad serve as portfolio co-managers of LB High Yield Fund. Mr. Ocenasek has served as a
portfolio manager of LB High Yield Fund since 1997. He also has served as portfolio co-manager of High Yield Portfolio, a series
of an affiliated mutual fund group, since 2001. Mr. Ocenasek has been with Thrivent Investment Mgt. since 1987. Mr. Simenstad
has served as a portfolio manager of LB High Yield Fund since 2001, and he has been a portfolio manager with Thrivent Investment
Mgt. since 1999. Mr. Simenstad served as chief investment officer for fixed-income investing at Voyageur Asset Management from
1996 until 1999.

LB Income Fund

Michael G. Landreville and Alan D. Onstad serve as portfolio co-managers of LB Income Fund. Mr. Landreville has served as a
portfolio manager of LB Income Fund since 1998. Mr. Landreville also serves as a portfolio manager of the following series of
affiliated mutual fund groups: The AAL Bond Fund since 2002; Income Portfolio since 2001; Limited Maturity Bond Portfolio since
2001; and LB Limited Maturity Bond Fund since 1999. Mr. Landreville has been with Thrivent Investment Mgt. since 1983, and he
served as associate portfolio manager from 1987 through 1997. Mr. Onstad has served as a portfolio manager of LB Income Fund
since 2002. Mr. Onstad also serves as a portfolio manager of the following series of affiliated mutual fund groups: Income
Portfolio since 2002; The AAL Bond Fund since 1999; and The AAL Balanced Fund since 1999. Mr. Onstad has been a portfolio manager
with Thrivent Investment Mgt. since 1995.

LB Municipal Bond Fund

Janet I. Grangaard has served as portfolio manager of LB Municipal Bond Fund since 2002. She also has served as portfolio
manager of The AAL Municipal Bond Fund, a series of an affiliated mutual fund group, since 2002. Ms. Grangaard has been a
portfolio manager with Thrivent Investment Mgt. since 1994.

LB Limited Maturity Bond Fund

Michael G. Landreville has served as portfolio manager of LB Limited Maturity Bond Fund since its inception in 1999. Mr.
Landreville also serves as a portfolio manager of the following series of affiliated mutual fund groups: The AAL Bond Fund since
2002; Income Portfolio since 2001; Limited Maturity Bond Portfolio since 2001; and LB Income Fund since 1998. Mr. Landreville has
been with Thrivent Investment Mgt. since 1983, and he served as associate portfolio manager from 1987 through 1997.

LB Money Market Fund

Gail R. Onan has served as portfolio manager of LB Money Market Fund since 1994. Ms. Onan also has served as the portfolio
manager of the following series of affiliated mutual fund groups: The AAL Money Market Fund since 2002; AAL Money Market
Portfolio since 2002; and Money Market Portfolio since 1994. Ms. Onan has been with Thrivent Investment Mgt. since 1969.

PERSONAL SECURITIES INVESTMENTS

Personnel of Thrivent Investment Mgt. and Price International may invest in securities for their own account pursuant to
codes of ethics that establish procedures for personal investing and restrict certain transactions. Transactions in securities that
may be held by the Funds are permitted, subject to compliance with applicable provisions under the codes of ethics.

ADVISORY FEES

Each Fund pays an annual investment advisory fee to Thrivent Investment Mgt. During the fiscal year ended October 31, 2002,
Thrivent Investment Mgt. received the following advisory fees, expressed as a percentage of the Fund's net assets:

LB Opportunity Growth Fund 0.46%
LB Mid Cap Growth Fund(1) 0.08%
LB World Growth Fund(2) 0.60%
LB Growth Fund(3) 0.00%
LB Fund 0.37%
LB Value Fund(3) 0.00%
LB High Yield Fund 0.39%
LB Income Fund(4) 0.29%
LB Municipal Bond Fund 0.32%
LB Limited Maturity Bond Fund(5) 0.00%
LB Money Market Fund(6) 0.20%
------------------
(1) After giving effect to a fee waiver of 0.35%.
(2) After giving effect to a fee waiver of 0.23%.
(3) After giving effect to a fee waiver and expense reimbursement of 0.65%.
(4) After giving effect to a fee waiver of 0.05%.
(5) After giving effect to a fee waiver and expense reimbursement of 0.30%.
(6) After giving effect to a fee waiver of 0.04%.

SHAREHOLDER INFORMATION

[BEGIN CALLOUT]

HOW TO CONTACT US

By Telephone:
1-800-847-4836
press 1 to speak with a customer service representative
or
press 2 to use the Automated Service Line

By Internet:
www.thrivent.com

By Mail (New Applications):
The Lutheran Brotherhood Family of Funds
P.O. Box 310
Minneapolis, Minnesota 55440-0310

By Mail (Additional Investments):
The Lutheran Brotherhood Family of Funds
P.O. Box 59025
Minneapolis, Minnesota 55459-0025

By Mail (Redemptions, Exchanges or Other Requests):
The Lutheran Brotherhood Family of Funds
P.O. Box 9491
Minneapolis, Minnesota 55440-9491

By Express Mail:
The Lutheran Brotherhood Family of Funds
625 Fourth Avenue South
Minneapolis, Minnesota 55415

[END CALLOUT]

PRICING FUNDS' SHARES

The price of a Fund's shares is based on the Fund's net asset value ("NAV"). Each Fund determines the NAV for a particular
class once daily at the close of trading on the New York Stock Exchange ("NYSE"), which is normally 4:00 p.m. Eastern time. The
Funds do not determine NAV on holidays observed by the NYSE or on any other day when the NYSE is closed. The NYSE is regularly
closed on Saturdays and Sundays, New Year's Day, Martin Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial Day,
Independence Day, Labor Day, Thanksgiving and Christmas. The price at which you purchase or redeem shares of the Funds is based on
the NAV next calculated after the Funds receive your payment or redemption request.

LB Money Market Fund seeks to maintain a stable $1.00 NAV pursuant to procedures established by the Board of Trustees for the
Funds, which utilize the amortized cost method. Valuing securities held by LB Money Market Fund on the basis of amortized cost
involves a constant amortization of premium or accretion of discount to maturity, regardless of the impact of fluctuating interest
rates on the market value of the security. This method is explained further in the Statement of Additional Information.

Each other Fund determines the NAV for a particular class by dividing the total Fund assets attributable to that class,
less all liabilities attributable to such class, by the total number of outstanding shares of that class. To determine the NAV,
the other Funds generally value their securities at current market value using readily available market prices. If market prices
are not available or do not accurately reflect fair value for a security, the fair value of that security may be determined under
policies approved by the Board of Trustees.

Some of the Funds hold securities that trade on foreign exchanges. These exchanges may trade on weekends or other days when
the Funds do not price their shares. As a result, the value of a Fund's shares may change at a time when those shares may not be
purchased or redeemed.

CHOOSING A CLASS OF SHARES

This Prospectus offers two classes of shares, each with its own sales charges and fees. You should choose the class of
shares that you believe is the most appropriate for you, given the amount of your purchase, the length of time you anticipate
holding the shares, and other factors.

Class A Shares Class B Shares
--------------------------------------------------------------------------------------------------------------------
Sales Charges Initial sales charge at time of investment Contingent Deferred Sales Charge ("CDSC")
of up to 5.5% for equity funds and 4.5% of 5% to 1%, depending on how
for fixed income funds depending on amount long you hold your shares before you
of investment redeem them. There is no CDSC after
five years
--------------------------------------------------------------------------------------------------------------------
Rule 12b-1 Distribution Fee None 0.75%. Class B shares convert
automatically to Class A shares after
five years
--------------------------------------------------------------------------------------------------------------------
Shareholder Servicing Fee 0.25% each year of average daily net 0.25% each year of average daily net
assets assets
--------------------------------------------------------------------------------------------------------------------
Class B shares (other than those of LB Limited Maturity Bond Fund and LB Money Market Fund) have an annual distribution fee.
This is also called a 12b-1 fee, based on the SEC rule that permits this type of fee. Under its 12b-1 plan, the Funds (other than
LB Limited Maturity Bond Fund and LB Money Market Fund) pay Thrivent Investment Mgt. distribution fees for the sale and
distribution of Class B shares. Those fees are paid out of a Fund's assets attributable to the Class B shares on an ongoing basis,
and as a result, these fees will increase the cost of your investment and may cost you more than paying other types of sales
charges.

CLASS A SHARES

The table below shows the sales charges you will pay if you purchase Class A shares of LB Opportunity Growth Fund, LB Mid Cap
Growth Fund, LB World Growth Fund, LB Growth Fund, LB Fund and LB Value Fund.

WHEN YOU THIS % IS WHICH EQUALS THIS
INVEST THIS DEDUCTED FOR % OF YOUR
AMOUNT SALES CHARGES INVESTMENT
----------------- -------------- ---------------
$1,000,000 or more 0%* 0%*
$500,000 and above but less than $1,000,000 2.0% 2.04%
$250,000 and above but less than $500,000 2.5% 2.56%
$100,000 and above but less than $250,000 3.5% 3.63%
$50,000 and above but less than $100,000 4.5% 4.71%
Less than $50,000 5.5% 5.82%

*A contingent deferred sales charge of 1% will apply to shares redeemed within one year.

The table below shows the sales charges you will pay if you purchase Class A shares of LB High Yield Fund, LB Income Fund and
LB Municipal Bond Fund.

*A contingent deferred sales charge of 1% will apply to shares redeemed within one year.

WAYS TO ELIMINATE OR REDUCE THE INITIAL SALES CHARGES

Rights of Accumulation

You can combine the value of all shares of any class of the Funds (except LB Limited Maturity Bond Fund and LB Money Market
Fund) that you or members of your family who live with you own to the amount of your next Class A purchase for the purpose of
calculating the sales charge. The value of all shares in an employer sponsored retirement plan (except shares of LB Limited
Maturity Bond Fund and LB Money Market Fund) will be accumulated for the purpose of determining the sales charge for shares
purchased through that retirement plan. Rights of accumulation do not apply to shares which you own in The AAL Mutual Funds or
shares which you purchase by exchanging shares of The AAL Mutual Funds.

Automatic Reinvestments

Class A shares that you purchase by automatically reinvesting dividends or capital gains distributions from Class A
shares of the Funds, except LB Limited Maturity Bond Fund and LB Money Market Fund, will not be subject to any initial sales
charge.

Thirteen-month Letter of Intent

If you intend to accumulate $50,000 or more, including the value of existing investments, in Class A or Class B shares
of one or more of the Funds (except LB Limited Maturity Bond Fund or LB Money Market Fund) within the next 13 months, you may sign
a Letter of Intent and receive a reduced sales charge on purchases of any Class A shares. The Letter of Intent does not apply to
shares which you own in The AAL Mutual Funds or shares which you purchase by exchanging shares of The AAL Mutual Funds.

Reinvestment upon Redemption

Except for certain Qualified Retirement Plans, if you redeem any or all of your Class A shares of any Fund other than LB
Money Market Fund or LB Limited Maturity Bond Fund, or if you redeem any or all of your Class B shares of any Fund, or receive
cash dividends from one of these Funds, you may reinvest any amount of your redemption in Class A shares of any of the Funds
without paying a sales charge on the purchase of Class A shares. You must make your reinvestment within 90 days after redeeming
your Class A shares or Class B shares and inform us that you qualify for this discount. Your redemption may be a taxable event
even if the shares are later reinvested.

Surrender or Dividend Withdrawal

If you request a surrender or dividend withdrawal from a life insurance or annuity contract issued by Thrivent Financial
for Lutherans ("Thrivent Financial") or Lutheran Brotherhood Variable Insurance Products Company and direct that the money should
be used to purchase Class A shares of a Fund, the sales charge will be waived.

Purchases by Tax-exempt Organizations

Class A shares of any Fund are available at one-half of the regular sales charge, if any, if purchased by organizations
qualifying for tax-exemption under Sections 501(c)(3) and 501(c)(13) of the Internal Revenue Code.

CLASS B SHARES

If you buy Class B shares, you will not be charged an initial sales charge. The entire purchase amount is immediately
invested, but a CDSC of up to 5% will apply to shares redeemed within five years of purchase.

When you sell shares in This % of net asset value
this year after you at the time of purchase
bought them (or of sale, if lower) is
deducted from your proceeds
------------------------ -----------------------------
1st Year . . . . . . . . . . . . . . . . . . . . . 5%
2nd Year . . . . . . . . . . . . . . . . . . . . . 4
3rd Year . . . . . . . . . . . . . . . . . . . . . 3
4th Year . . . . . . . . . . . . . . . . . . . . . 2
5th Year . . . . . . . . . . . . . . . . . . . . . 1

In order to ensure that you pay the lowest CDSC possible, the Fund will first redeem Class B shares that are not subject to
the CDSC and then Class B shares held for the longest period of time. There is no CDSC on exchanges into Class B shares of the
other Funds. The date of your initial investment will continue to be used as the basis for CDSC calculations when you exchange.
However, if you exchange Class A shares of LB Limited Maturity Bond Fund or LB Money Market Fund for Class B shares of any other
Fund, the date of the exchange will be used for purposes of calculating the CDSC. If you exchange Class B shares of any other
Fund for Class B shares of LB Limited Maturity Bond Fund or LB Money Market Fund, the CDSC will stop declining during the period
your investment is in the LB Limited Maturity Bond Fund or LB Money Market Fund Class B shares. The amount of any CDSC will be
paid to Thrivent Investment Mgt., the broker-dealer for the Funds.

Initial investments in Class B shares of $100,000 or more per purchase will not be accepted. Because of the reduced sales
charges available on such purchases, Class A shares (or Institutional Class shares if the investor is eligible) must be purchased
instead. Class B shares of LB Limited Maturity Bond Fund and LB Money Market Fund are offered solely in exchange for Class B
shares of other Funds of The Lutheran Brotherhood Family of Funds.

CONTINGENT DEFERRED SALES CHARGE WAIVERS

No CDSC will apply to the following:

* Increases in the net asset value of Class B shares above the purchase price;

* Class B shares purchased through reinvestment of dividends and capital gains distributions;

* Class B shares purchased more than five years prior to redemption;

* Class B shares redeemed due to the death or disability of a sole individual shareholder (but not for shares held in
joint accounts or "family," "living" or other trusts) and for mandatory retirement distributions from an IRA or a
tax-sheltered custodial account (403(b) plan); or

* Class B share redemptions from certain retirement plans which are taken in substantially equal payments.

CONVERSION OF CLASS B SHARES TO CLASS A SHARES

Your Class B shares will automatically convert into Class A shares of the same Fund after five years and consequently will no
longer be subject to the higher expenses borne by Class B shares. The Fund will not include the period that you held Class B
shares of LB Limited Maturity Bond Fund or LB Money Market Fund in calculating the five-year period.

BUYING SHARES

OPENING AN ACCOUNT

You must open an account for each Fund that you want to purchase. Your Thrivent Investment Mgt. representative is ready to
help you open a new account. If you do not know the name of your representative, please call our Investment Interaction Center
("Interaction Center") at (800) THRIVENT (847-4836).

How you register your account with the Funds can affect your legal interests as well as the rights and interests of your
family and beneficiaries. You should always consult with your legal and/or tax adviser to determine the account registration that
best meets your needs. You must clearly identify the type of account you want on your application. If shares are held in the name
of a corporation, trust, estate, custodianship, guardianship, partnership or pension and profit sharing plan, additional
documentation may be necessary.

REQUIRED MINIMUM INVESTMENTS

First Additional
Regular Account Purchase Purchases
--------------- --------- -----------

All Funds except LB Money Market Fund
and LB Limited Maturity Bond Fund $1,000 $50

LB Money Market Fund $1,500 $100

LB Limited Maturity Bond Fund $2,500 $100

IRA or Tax-Deferred Plan
------------------------

All Funds except LB Money Market Fund
and LB Limited Maturity Bond Fund $500 $50

LB Money Market Fund and LB Limited
Maturity Bond Fund $500 $100

Minimum Monthly
Automatic Investment Plan Amount Per Account
-------------------------- ---------------

All Funds except LB Money Market Fund
and LB Limited Maturity Bond Fund $50

LB Money Market Fund and $100
LB Limited Maturity Bond Fund

Shares of the Funds are issued on days on which the NYSE is open, which generally are weekdays other than national holidays.
Your order will be considered received when your check or other payment is received in good order. Orders that are received before
the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time) will be processed at the net asset value calculated
that day. Orders received after the close of regular trading on the NYSE will be processed at the net asset value calculated on
the following business day. The Funds reserve the right to reject any purchase request.

INITIAL PURCHASES

You may purchase initial shares through your Registered Representative or in any of the following ways:

* By mail
* By wire transfer

Class B shares of LB Limited Maturity Bond Fund and LB Money Market Funds are offered solely in exchange for Class B shares
of other Funds of The Lutheran Brotherhood Family of Funds.

Initial Purchases by Mail

To buy shares of the Funds by mail:

* Complete and mail your new account application for each different account registration. If you do not complete the
application properly, your purchase may be delayed or rejected.

* Make your check payable to the Fund you are buying. If more than one Fund, make your check payable to "The Lutheran
Brotherhood Family of Funds."

Initial Purchases by Wire Transfer

In order to buy shares of the Funds by wire transfer, your bank must be a member of, or have a corresponding relationship
with a member of the Federal Reserve System.

Step 1: Call our Interaction Center at (800) THRIVENT (847-4836) and
provide the following information:

* Your account registration;
* The name of the Fund(s) in which you want to invest;
* The Class of shares you wish to buy;
* Your address;
* Your Social Security or tax identification number;
* The dollar amount;
* The name of the wiring bank; and
* The name and telephone number of the person at your bank who the Funds can contact about your purchase.

Step 2: Instruct your bank to use the following instructions when wiring
funds:

Wire transfer to:
Wells Fargo Bank, NA
6th Street and Marquette Avenue
Minneapolis, Minnesota 55479
ABA #091000019
Account #00-003-156

Credit:
Thrivent Financial Investor Services Inc. as Agent for the benefit of The Lutheran Brotherhood Family of Funds
Account #00-003-156

Further Credit:
[Name of the Fund]
[Shareholder Account Number]
[Shareholder Registration/Name]

Please call (800) THRIVENT (847-4836) prior to the wire transfer in order to obtain a confirmation number and to ensure
prompt and accurate handling of funds.

Step 3: Mail your application.

The Fund and its transfer agent are not responsible for the consequences of delays resulting from the banking or Federal
Reserve wire transfer system, or from incomplete wiring instructions.

ADDITIONAL PURCHASES

You may purchase additional shares through your Registered Representative or in any of the following ways:

* By mail
* By telephone
* By the Internet
* By wire transfer
* Through the Automatic Investment Plan

Additional Purchases By Mail

To make additional purchases by mail, make your check payable to the specific Fund in which you are investing. Please indicate
your Fund account number on the face of your check. If you have more than one account, always verify that you are investing in the
proper account. This will help ensure the proper handling of the transaction.

Additional Purchases By Telephone

Before you can buy additional shares by telephone, you must have selected the Request for Telephone Purchase option on the
application. Once you have selected this option, you can call our Interaction Center at (800) THRIVENT (847-4836) and we will
withdraw money from your bank checking or savings account to make your investment. You pay the next price computed after the
Funds have received your investment from your bank, which is usually three business days after you authorize the transfer. If you
need to invest sooner, you should consider making a wire transfer purchase.

We have implemented procedures designed to reasonably ensure that telephone instructions are genuine. These procedures
include recording telephone conversations, requesting verification of certain personal information, restricting transmittal of
redemption proceeds to pre-authorized account owners and addresses and supplying transaction verification information. Please
note, however, that we will not be liable for losses suffered by a shareholder that result from following telephone instructions
reasonably believed to be authentic after verification pursuant to these procedures. If an account has multiple owners, we may
rely on the instructions of any one account owner. This privilege may not be available on all retirement plan accounts.

Additional Purchases By the Internet

You may purchase additional shares within your Fund accounts over the Internet (pre-authorized bank information is required
prior to purchase). We require a Personal Identification Number (PIN) prior to authorizing transactions on your Fund accounts.
This privilege may not be available on all retirement plan accounts.

Additional Purchases By Wire Transfer

You may make additional purchases in an existing Fund account by wire transfer. In order to buy shares of the Funds by wire
transfer, your bank must be a member of, or have a corresponding relationship with a member of the Federal Reserve System.

Instruct your bank to use the following instructions when wiring funds:

Wire transfer to:
Wells Fargo Bank, NA
6th Street and Marquette Avenue
Minneapolis, Minnesota 55479
ABA #091000019
Account #00-003-156

Credit:
Thrivent Financial Investor Services Inc. as Agent for the benefit of The Lutheran Brotherhood Family of Funds
Account #00-003-156

Further Credit:
[Name of the Fund]
[Shareholder Account Number]
[Shareholder Registration/Name]

The Fund and its transfer agent are not responsible for the consequences of delays resulting from the banking or Federal
Reserve wire transfer system, or from incomplete wiring instructions.

AUTOMATIC INVESTMENT PLANS

The Funds offer several automatic investment plans to make periodic investing more convenient. Using the Funds' automatic
investment plans, you may implement a strategy called dollar cost averaging. Dollar cost averaging involves investing a fixed
amount of money at regular intervals. When you dollar cost average, you purchase more shares when the price is low and fewer
shares when the price is high. Dollar cost averaging does not ensure a profit or protect against a loss during declining
markets. Because such a program involves a continuous investment regardless of changing share prices, you should consider your
ability to continue the program through times when the share prices are high.

Please note that it takes up to 10 business days from the time you invest for the transfer agent to validate any electronic
transfer. This will cause some delay in your ability to write checks or use your Visa CheckCard on an LB Money Market Fund
account or to redeem or transfer from your account.

For further information regarding any of the following automatic investment plans, contact your Thrivent Investment Mgt.
representative or our Interaction Center at (800) THRIVENT (847-4836).

Automatic Bank Withdrawal Plan

Investors who wish to make regular additional investments in an existing Fund account may do so through the Funds' Automatic
Bank Withdrawal Plan. Under this plan, the Funds will draft an investor's bank checking or savings account in the amount
specified - which may not be less than $50 per account - on specified dates. The proceeds will be invested in shares of
the specified Fund at the applicable offering price determined on the date of the draft. To use this plan you must authorize the
plan on your application form, or subsequently in writing, and submit additional documents.

The Automatic Exchange Plan

The automatic exchange plan allows investors to make regular automatic investments in an existing Fund account by redemption
of the same class of shares from their LB Money Market Fund account. The automatic exchange plan allows investors to select the
transaction date. All such investments must be at least $50 and will be subject to the applicable sales charge. To start, stop
or change the plan, you must notify the Funds at least 24 hours prior to the transaction date.

Automatic Payroll Deduction Savings and Investment Plan

The payroll deduction savings and investment plan allows employees of Thrivent Financial, employees of Lutheran-affiliated
institutions, Social Security recipients, federal employees and military personnel to invest in the Funds through direct deduction
from their paychecks or commission checks.

RETIREMENT PLANS

Individual and employer-sponsored retirement plans may be established with assets invested in The Lutheran Brotherhood
Family of Funds. These accounts may offer you tax advantages. You should consult with your attorney and/or tax advisor before
you establish a retirement plan. Additional fees may apply to some retirement accounts. Please review plan documents for more
information. Your registered representative can provide you with the materials, documents and forms you need for establishing
your retirement plan.

PURCHASE POLICIES

Your payment must in U.S. dollars drawn on a U.S. Bank. We do not accept cash. If you purchase shares by check, electronic
funds transfer (other than bank wire), or automatic investment plan and you elect to redeem those shares soon after their
purchase, we may postpone paying the redemption proceeds until your payment has cleared or up to 10 days from the date of purchase.

We reserve the right to suspend the offering of shares for a period of time and the right to reject any specific purchase of
shares.

CONFIRMATION

Thrivent Investment Mgt. will maintain a share account for you. Share certificates will not be issued. We generally mail
written confirmation of your purchases, except for additional purchases in the LB Money Market Fund, within five business days
following the date of your purchase. We mail confirmation of additional purchases in the LB Money Market Fund monthly. We mail
confirmation of your automatic investment plan transactions at least quarterly. For information about your shares, please contact
the Interaction Center at (800) THRIVENT (847-4836).

REDEEMING SHARES

You can sell your shares on any business day we price the Funds' shares. Once we receive your request for redemption, we
will redeem your shares at the next NAV on any day on which the NYSE is open for business. The Funds may postpone payment or
suspend the right of redemption in unusual circumstances, as permitted by the U.S. Securities and Exchange Commission. When you
purchase shares by check, the Funds may delay payment for redemption requests for the shares purchased for up to 10 business days
or until your payment has cleared.

If shares are held in the name of a corporation, trust, estate, custodianship, guardianship, partnership or pension and
profit sharing plan, or if you have requested and received share certificates, additional documentation may be necessary.

You may redeem shares in any of the following ways:

* By mail
* By phone
* By the Internet
* By wire transfer
* Through the Systematic Withdrawal Plan

Redemptions by Mail

Step 1: Prepare a written request including the following information:

* Name(s) of the account owner(s);
* Your account number;
* The name of the Fund(s) whose shares are being redeemed; and
* Dollar or share amount you wish to redeem.

If an account has multiple owners, we may rely on the instructions of any one account owner.

You must have a Medallion Signature Guarantee if you want to do any of the following:

* Sell shares with a value of more than $100,000;
* Send the proceeds to an address other than the one listed for your account; or
* Make the check payable to someone other than the account owners(s).

A Medallion Signature Guarantee is a stamp provided by a financial institution that verifies your signature. You endorse
the certificate on the back and have the signature(s) guaranteed by an eligible guarantor institution such as a commercial
bank, trust company, security broker or dealer, credit union, or a savings association participating in the Medallion
Signature Guarantee Program. A Medallion Signature Guarantee may be obtained at any national bank or brokerage firm.

Step 2: Mail your redemption request.

Please note, an additional fee may be assessed for a redemption delivered by overnight mail or Saturday delivery.

The Funds will mail payment proceeds within seven days following receipt of all required documents. However, mailing may be
delayed if we are waiting for your means of purchase to clear.

Redemptions by Telephone

The privilege to redeem shares by telephone is automatically extended to all accounts except certain retirement plan
accounts, unless the option is specifically declined on your application. If you do not want the telephone redemption option,
please call our Interaction Center at (800) THRIVENT (847-4836). By accepting this privilege, you assume some risks for
unauthorized transactions.

The following conditions apply:

* Telephone redemption checks will be issued to the same payee(s) as the account registration and sent only to the address
of record;
* There has been no change of address in the preceding 30 days;
* The request is for $100,000 or less;
* Shares to be redeemed cannot be in certificate form; and
* If an account has multiple owners, we may rely on the instructions of any one account owner.

The Funds will mail payment proceeds within seven days following receipt of all required documents.

Redemptions by the Internet

You may redeem shares within your Fund accounts over the Internet. We require a Personal Identification Number (PIN) prior
to authorizing transactions on your Fund accounts. This privilege may not be available on retirement plan accounts.

Redemptions by Wire Transfer

When redeeming shares by wire transfer, the following conditions apply:

* A fee of up to $30 may be assessed for redemptions by wire.
* If an account has multiple owners, we may rely on the instructions
of any one account owner.
* This privilege may not be available on all retirement plan accounts.

Systematic Withdrawal Plan (Usually Appropriate for Class A Shares Only)

You can have money automatically withdrawn from your Fund account(s) on a regular basis by using our systematic withdrawal
plan. The plan allows you to receive funds or direct payments at regular intervals. The following rules and/or guidelines apply:

* You need a minimum of $5,000 in your account to start the plan.
* You can select the date(s) on which the money is withdrawn.
* To start the plan or change the payee(s), you must notify us in writing and you must have all account owner(s) sign the
appropriate form, which is available from our Interaction Center.
* Money can be sent by check or electronic funds transfer.
* To stop or change your plan, you must notify Thrivent Investment Mgt. prior to the next withdrawal.
* Because of sales charges, you must consider carefully the costs of
frequent investments in and withdrawals from your account.

Please note, for minimum required distributions from certain retirement plan accounts, we will waive the contingent deferred
sales charge on Class B shares.

THE LB MONEY MARKET FUND CHECKS (CLASS A SHARES ONLY)

You can write checks on your LB Money Market Fund account, except for Class B shares, if you complete a check writing
signature card and agreement. You can request checks on your Funds application or in writing. We do not charge a fee for
supplying your checks. The following rules and/or guidelines apply:

* The checks you write on the LB Money Market Fund must be for $500 or more. (Because the Fund is not a bank, some
features, such as stop payment, may not be available.)
* Our transfer agent may impose reasonable fees for each check that is returned.
* Unless you purchased shares by wire, you must wait up to 10 business days after you purchase The LB Money Market Fund
shares to write checks against that purchase.
* Unless you redeem via the Internet, you need a written request - not a check - to close an LB Money Market Fund
account. Your written request will require a Medallion Signature Guarantee to close accounts over $100,000 or to
send the proceeds to a special payee or address.

VISA CHECKCARD

Class A shareholders of LB Money Market Fund are offered the opportunity to apply for a VISA CheckCard. With a VISA
CheckCard, you authorize the redemption of your shares by using the card. The VISA CheckCard may be used to purchase merchandise
or services from merchants honoring VISA or to obtain cash advances (which a bank may limit to $5,000 per account per day for
merchandise and services, $600 per account for cash advances) from any bank honoring VISA. You will earn daily income dividends
on Fund shares up to the date they are redeemed.

When you receive an LB Money Market Fund VISA CheckCard, you will be subject to the VISA account regulations of the issuing
bank, including an annual VISA fee of $25 to cover its fees and administrative costs. The issuing bank may also charge a fee each
time an Automated Teller Machine (ATM) is used. In addition to that fee, the bank that owns the ATM machine may also charge a fee
for each transaction. Enough shares will be redeemed automatically from your account to pay the fee. Lost or stolen cards should
be reported immediately by calling toll-free (800) 449-9176. LB Money Market Fund and the issuing bank have the right to modify
or terminate the VISA CheckCard privilege or to impose additional charges for establishing or maintaining a VISA account upon 30
days prior written notice.

ACCOUNTS WITH LOW BALANCES

Due to the high cost of maintaining accounts with low balances, the Funds may redeem shares in any account or charge an
annual fee of $12 (a "small account fee") if the value of shares in the account falls below a certain minimum. The required
minimum amount for Class A and Class B share accounts is $1,000 for all Funds except LB Limited Maturity Bond Fund and LB Money
Market Fund. The required minimum amount for Class A and B share accounts of LB Limited Maturity Bond Fund is $2,500, and the
required minimum amount for Class A and B share accounts of LB Money Market Fund is $1,500.

Before shares are redeemed to close an account or a small account fee is charged, you will be notified in writing and allowed
60 days to purchase additional shares.

EXCHANGING SHARES BETWEEN FUNDS

You may exchange some or all of your shares of one Fund for shares of the same class of any of the other Funds. In addition,
you may exchange Class A shares of your Funds for Class A shares of The AAL Mutual Funds. If you exchange Class A shares of a Fund
for which you have previously paid an initial sales charge for Class A shares of another Fund, you will not be charged an initial
sales charge for the exchange. If you exchange Class B shares of one Fund for Class B shares of another Fund, you will not be
charged a CDSC at the time of the exchange.

If you own Class A shares of LB Limited Maturity Bond Fund or LB Money Market Fund which you did not obtain through
an exchange, you may exchange any or all of those shares for Class B shares of another Fund. The Class B shares which you acquire
from the exchange will be subject to a CDSC from the date of the exchange.

Shareholders who are eligible to purchase Institutional Class shares may exchange some or all of their Class A shares
for Institutional Class shares of any of the Funds or Institutional Class shares of The AAL Mutual Funds.

All exchanges will be based on the NAV of the shares you are exchanging and acquiring and will be subject to the minimum
investment requirements. Except as described above, shares of one class may not be exchanged for shares of another class.

An excessive number of exchanges may be disadvantageous to the Funds. Therefore, the Funds reserve the right to terminate
the exchange privilege of any shareholder who makes more than 12 exchanges in a year. Further, the Funds reserve the right to
modify or terminate the exchange privilege at any time with respect to any Fund, if the Funds' Trustees determine that continuing
the privilege may be detrimental to shareholders. If the exchange policies are materially modified or terminated, we will give
you at least 60 days prior notice.

You may obtain an exchange form or receive more information about making exchanges between Funds by contacting your
Thrivent Investment Mgt. registered representative.

You may exchange funds in any of the following ways:
* By mail
* By telephone
* By the Internet

Exchanges by Mail

Prepare and mail a written request including the following information:
* Name(s) of the account owner(s);
* Your Fund(s) and account number(s);
* Dollar or share amount you wish to exchange;
* The name of the Fund(s) and account number(s) you are exchanging into; and
* Signatures of all account owners.

Exchanges by Telephone

The privilege to exchange shares by telephone is automatically extended to all accounts, unless the option is specifically
declined on your application. If you do not want the telephone exchange option, please call our Interaction Center at (800)
THRIVENT (847-4836). By accepting this privilege, you assume some risks for unauthorized transactions.
You may exchange shares for which certificates have not been issued by calling our Interaction Center at (800) THRIVENT
(847-4836). Telephone exchange requests received prior to the close of the NYSE, usually 4:00 p.m. Eastern Time, will receive
that day's price.

During periods of extreme volume caused by dramatic economic or stock market changes, shareholders may have difficulty
reaching our Interaction Center by phone, and a telephone exchange may be difficult to implement at those times. The Funds
reserve the right to temporarily discontinue the telephone exchange privilege during such periods of extreme volume.

Exchanges by the Internet

You may exchange shares within your Fund accounts over the Internet. We require a Personal Identification Number (PIN) prior
to authorizing transactions on your Fund accounts. This privilege may not be available on all retirement plan accounts.

DISTRIBUTIONS

DIVIDENDS

Dividends are declared and paid as follows:

- declared daily and paid monthly LB High Yield Fund
LB Income Fund
LB Municipal Bond Fund
LB Limited Maturity Bond Fund
LB Money Market Fund

- declared and paid annually LB Opportunity Growth Fund
LB Mid Cap Growth Fund
LB World Growth Fund
LB Growth Fund
LB Fund
LB Value Fund

Income dividends are derived from investment income, including dividends, interest, and certain foreign currency gains
received by a Fund.

CAPITAL GAINS

Capital gains distributions, if any, usually will be declared in December for the prior fiscal year ending October 31.

DISTRIBUTION OPTIONS

When completing your application, you must select one of the following options for dividends and capital gains
distributions:

* Full Reinvestment. Distributions from a Fund will be reinvested in additional shares of the same class of that Fund. This
option will be selected automatically unless one of the other options is specified.

* Full Reinvestment in a Different Fund. You may also choose to have your distributions reinvested into an existing account
of the same class of another Fund within The Lutheran Brotherhood Family of Funds.

* All Cash. Distributions will be paid in cash. Your request to receive all or a portion of your distributions in cash
must be received at least 10 days before the record date of the dividend or other distribution.

* Part Cash and Part Reinvestment. You may request to have part of your distributions paid in cash and part of your
distributions reinvested in additional shares of the same class of that Fund.

Distributions paid in shares will be credited to your account at the next determined NAV per share.

TAXES

In general, any dividends and short-term capital gains distributions you receive from a Fund are taxable as ordinary income.
Distributions of other net capital gains by a Fund are generally taxable as capital gains - in most cases, at different rates from
those that apply to ordinary income. We expect that distributions from LB Opportunity Growth Fund, LB Mid Cap Growth Fund, LB
World Growth Fund, LB Growth Fund, LB Fund and LB Value Fund will consist primarily of capital gains and that distributions from
LB High Yield Fund, LB Income Fund, LB Limited Maturity Bond Fund and LB Money Market Fund will consist primarily of ordinary
income.

The tax you pay on a given capital gains distribution generally depends on how long a Fund has held the portfolio securities
it sold. It does not depend on how long you have owned your Fund shares or whether you reinvest your distributions or take them
in cash.

Every year, the Funds will send you information detailing the amount of ordinary income and capital gains distributed to you
for the previous year. The sale of shares in your account may produce a gain or loss, and is a taxable event. For tax purposes,
an exchange between Funds is the same as a sale. You will not be required to pay federal income tax on (i) the automatic
conversion of Class B shares to Class A shares or (ii) exchanges of Class A or Class B shares of a Fund for Institutional Class
Shares of the same fund.

Your investment in the Funds could have additional tax consequences. Please consult your tax professional for assistance.

By law, the Funds must withhold 31% of your distributions and proceeds if you have not provided complete, correct taxpayer
information.

LB MUNICIPAL BOND FUND

You will not be required to pay federal income tax on dividends of LB Municipal Bond Fund that represent interest that
the Fund earns on tax-exempt securities. The Fund may, however, invest a portion of its assets in securities that generate income
that is not exempt from federal income tax or securities that are subject to the alternative minimum tax. In addition, income of
the Fund that is exempt from federal income tax may be subject to state and local income tax. Any capital gains distributed by LB
Municipal Bond Fund may be taxable.

LB WORLD GROWTH FUND

Foreign investments pose special tax issues for the LB World Growth Fund and its shareholders. For example, certain
gains and losses from currency fluctuations may be taxable as ordinary income. Also, certain foreign countries withhold some
interest and dividends that otherwise would be payable to the LB World Growth Fund. If the amount withheld is material,
shareholders may be able to claim a foreign tax credit.

OTHER SECURITIES AND INVESTMENT PRACTICES

The principal investment strategies and risk factors of each Fund are outlined beginning on page 2. This section provides
additional information about some of the securities and other practices in which certain Funds offered by this Prospectus may
engage, along with their associated risks.

REPURCHASE AGREEMENTS. Each of the Funds may buy securities with the understanding that the seller will buy them back with
interest at a later date. If the seller is unable to honor its commitment to repurchase the securities, the Fund could lose
money.

WHEN-ISSUED SECURITIES. Each Fund may invest in securities prior to their date of issue. These securities could fall in
value by the time they are actually issued, which may be any time from a few days to over a year. In addition, no income will be
earned on these securities until they are actually delivered.

MORTGAGE-BACKED AND ASSET-BACKED SECURITIES. LB High Yield Fund, LB Income Fund, LB Limited Maturity Bond Fund and LB Money
Market Fund may invest in mortgage-backed and asset-backed securities. Mortgage-backed securities are securities that are backed
by pools of mortgages and which pay income based on the payments of principal and income they receive from the underlying
mortgages. Asset-backed securities are similar but are backed by other assets, such as pools of consumer loans. Both are
sensitive to interest rate changes as well as to changes in the redemption patterns of the underlying securities. If the
principal payment on the underlying asset is repaid faster or slower than the holder of the mortgage-backed or asset-backed
security anticipates, the price of the security may fall, especially if the holder must reinvest the repaid principal at lower
rates or must continue to hold the securities when interest rates rise.

ZERO COUPONS. Each of the Funds may invest in zero coupon securities. A zero coupon security is a debt security that is
purchased and traded at discount to its face value because it pays no interest for some or all of its life. Interest, however, is
reported as income to the Fund that has purchased the security and the Fund is required to distribute to shareholders an amount
equal to the amount reported. Those distributions may require the Fund to liquidate portfolio securities at a disadvantageous
time.

INDUSTRY EXPOSURE. Each of the Funds may invest up to (but not more than) 25% of its assets in the securities of a single
industry. To the extent that a Fund invests in a particular industry, it will be exposed to the unique risks associated with that
industry. As of the date of this prospectus, none of the Funds held securities of any company primarily engaged in the alcohol,
gaming, or tobacco industries. The Funds are not prohibited from investing in these industries, however, and may hold such
securities from time to time in the future.

FOREIGN SECURITIES. Each of the Funds may invest in foreign securities. Foreign securities are generally more volatile
than their domestic counterparts, in part because of higher political and economic risks, lack of reliable information and
fluctuations in currency exchange rates. These risks are usually higher in less developed countries. Each of these Funds except
the LB Money Market Fund may use foreign currencies and related instruments to hedge its foreign investments.

In addition, foreign securities may be more difficult to resell than comparable U.S. securities because the markets for
foreign securities are less efficient. Even where a foreign security increases in price in its local currency, the appreciation
may be diluted by the negative effect of exchange rates when the security's value is converted to U.S. dollars. Foreign
withholding taxes also may apply and errors and delays may occur in the settlement process for foreign securities.

INTERNATIONAL EXPOSURE. Each of the Funds except LB Municipal Bond Fund and LB Money Market Fund may have some international
exposure (including emerging markets) in their investments. Many U.S. companies in which these Funds may invest generate
significant revenues and earnings from abroad. As a result, these companies and the prices of their securities may be affected by
weaknesses in global and regional economies and the relative value of foreign currencies to the U.S. dollar. These factors, taken
as a whole, could adversely affect the price of Fund shares.

RESTRICTED AND ILLIQUID SECURITIES. Each of the Funds may invest to a limited extent in restricted or illiquid securities.
Any securities that are thinly traded or whose resale is restricted can be difficult to sell at a desired time and price. Some of
these securities are new and complex, and trade only among institutions. The markets for these securities are still developing
and may not function as efficiently as established markets. Owning a large percentage of restricted or illiquid securities could
hamper a Fund's ability to raise cash to meet redemptions. Also, because there may not be an established market price for these
securities, the Fund may have to estimate their value, which means that their valuation (and, to a much smaller extent, the
valuation of the Fund) may have a subjective element.

SECURITIES LENDING. Each of the Funds, except the LB Money Market Fund, may seek additional income by lending portfolio
securities to qualified institutions. By reinvesting any cash collateral it receives in these transactions, a Fund could realize
additional gains or losses. If the borrower fails to return the securities and the invested collateral has declined in value, the
Fund could lose money.

DERIVATIVES. Each of the Funds, except the LB Money Market Fund, may invest in derivatives. Derivatives, a category that
includes options and futures, are financial instruments whose value derives from another security, an index or a currency. Each
Fund may use derivatives for hedging (attempting to offset a potential loss in one position by establishing an interest in an
opposite position). This includes the use of currency-based derivatives for hedging its positions in foreign securities. Each
Fund may also use derivatives for speculation (investing for potential income or capital gain).

While hedging can guard against potential risks, it adds to the Fund's expenses and can eliminate some opportunities for
gains. There is also a risk that a derivative intended as a hedge may not perform as expected.

The main risk with derivatives is that some types can amplify a gain or loss, potentially earning or losing substantially
more money than the actual cost of the derivative.

With some derivatives, whether used for hedging or speculation, there is also the risk that the counterpart may fail to honor
its contract terms, causing a loss for the Fund. In addition, suitable derivative investments for hedging or speculation may not
be available.

HIGH-YIELD BONDS. Each of the Funds, except LB Municipal Bond Fund and LB Money Market Fund, may invest in high-yield
bonds. High-yield bonds are debt securities rated below BBB by S&P or Baa by Moody's. To the extent that a Fund invests in
high-yield bonds, it takes on certain risks:

* The risk of a bond's issuer defaulting on principal or interest payments is greater than on higher quality bonds.
* Issuers of high-yield bonds are less secure financially and are more likely to be hurt by interest rate increases and
declines in the health of the issuer or the economy.

GOVERNMENT BONDS AND MUNICIPAL BONDS. LB Limited Maturity Bond Fund may also invest in government bonds and municipal
bonds. As a result, the Fund's performance may be affected by political and economic conditions at the state, regional or Federal
level. These may include budgetary problems, declines in the tax base and other factors that may cause rating agencies to
downgrade the credit ratings on certain issues.

BONDS. The value of any bonds held by a Fund is likely to decline when interest rates rise; this risk is greater for bonds
with longer maturities. A less significant risk is that a bond issuer could default on principal or interest payments, possibly
causing a loss for the Fund.

SHORT-TERM TRADING. The investment strategy for each Fund, except LB Money Market Fund, at times may include short-term
trading. While a Fund ordinarily does not trade securities for short-term profits, it will sell any security at any time it
believes best, which may result in short-term trading. Short-term trading can increase a Fund's transaction costs and may
increase your tax liability.

The LB Income Fund and LB Limited Maturity Bond Fund had portfolio turnover rates of over 100% for the fiscal year ending
October 31, 2002, largely because of those Funds' active involvement in a mortgage dollar roll program. A mortgage dollar roll
program involves the purchase and sale of mortgage-backed securities. The adviser believes that the benefits of investing in such
a program will outweigh the potential for increased transaction costs or capital gains.

INITIAL PUBLIC OFFERING. Each of the Funds may engage in initial public offerings (IPOs) of securities. IPOs issued by
unseasoned companies with little or no operating history are risky and their prices are highly volatile, but they can result in
very large gains in their initial trading. Thus, when the Fund's size is smaller, any gains form IPOs will have an exaggerated
impact on the Fund's reported performance than when the Fund is larger. Attractive IPOs are often oversubscribed and may not be
available to the Fund, or only in very limited quantities. There can be no assurance that a Fund will have favorable IPO
investment opportunities.

SECURITIES RATINGS. When fixed-income securities are rated by one or more independent rating agencies, a Fund uses these
ratings to determine bond quality. Investment grade bonds are those that are rated within or above the BBB major rating category
by S&P or the Baa major rating category by Moody's, or unrated but considered of equivalent quality by the Fund's adviser.
High-yield bonds are below investment grade bonds in terms of quality.

In cases where a bond is rated in conflicting categories by different rating agencies, a Fund (other than LB Money Market
Fund) may choose to follow the higher rating. If a bond is unrated, the Fund may assign it to a given category based on its own
credit research. If a rating agency downgrades a security, the Fund will determine whether to hold or sell the security,
depending on all of the facts and circumstances at that time.

DEFENSIVE INVESTING. In response to market, economic, political, or other conditions, each Fund (except LB Money Market
Fund) may invest without limitation in cash, preferred stocks, or investment-grade debt securities for temporary defensive
purposes. If the Fund does this, different factors could affect the Fund's performance and it may not achieve its investment
objective.

OPTIMUM(R) ACCOUNT

Thrivent Investment Mgt. offers the OPTIMUM Account to all LB Money Market Fund Class A shareholders. OPTIMUM Account
features include:

* VISA CheckCard Privilege. You can use the VISA card to purchase merchandise or obtain cash advances. There is no annual
fee, although you will be subject to other VISA account regulations of the issuing bank, as discussed on page 33.

* Checkwriting Privileges. You can write as many checks as you want with no minimum and at no charge per check. State
Street Bank will redeem enough shares from your LB Money Market Fund account to cover the checks you write on the date
the check reaches the Bank.

* Tax-free Money Market Fund. You have access to Tax-Free Instruments Trust, a money market fund with dividends exempt
from federal income tax.

* Discount Brokerage. You can use OPTIMUM Account Discount Brokerage Services for direct purchases of general securities.

* Automatic Settlement. Purchase and sell transactions for general securities placed through OPTIMUM Account Discount
Brokerage Services will clear automatically through your LB Money Market Fund account.

* Monthly Consolidated Statement. In lieu of an immediate confirmation of LB Money Market Fund financial transactions, you
will receive your monthly OPTIMUM Account statement. The monthly statement will report all activity in your accounts
held in The Lutheran Brotherhood Family of Funds, Tax-Free Instruments Trust, OPTIMUM Account Discount Brokerage Account,
and VISA CheckCards.

* Newsletter. Money management tips and information about the OPTIMUM Account will be sent to you on a regular basis
through the quarterly newsletter offered to OPTIMUM Account holders.

In the future, Thrivent Investment Mgt. may offer additional features to shareholders in the OPTIMUM Account.

There is a one-time new account fee of $25 for the OPTIMUM Account package. A monthly administrative fee of $5.00 is
charged. These fees will be automatically redeemed from your LB Money Market Fund account each month.

FINANCIAL HIGHLIGHTS

LB Growth Fund, LB Value Fund, and LB Limited Maturity Bond Fund commenced operations with multiple classes of shares on
October 29, 1999, which was the last business day of the Funds' fiscal year. Shares of the Funds other than LB Growth Fund, LB
Value Fund, and LB Limited Maturity Bond Fund had no class designations until October 31, 1997, when designations were assigned
based on the sales charges, Rule 12b-1 fees and shareholder servicing fees applicable to shares sold after that date. The tables
below cover periods prior to the adoption of class designations for Funds other than LB Growth Fund, LB Value Fund, and LB Limited
Maturity Bond Fund and therefore do not reflect the Rule 12b-1 fees of 0.75% per year applicable to the Class B shares (except
Class B shares of the LB Money Market Fund) and the shareholder servicing fees of 0.25% per year applicable to the Class A and
Class B shares, which will adversely affect performance results for periods after October 31, 1997. The tables also do not show
the effect of a sales charge for any of the Funds.

LB OPPORTUNITY GROWTH FUND CLASS A SHARES

Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
---------- ---------- ----------- ---------- ----------
Net Asset Value, Beginning of Period..... $ $14.30 $11.16 $9.33 $12.97
------ ------- ------ ------ ------
Investment Operations:
Net Investment Income.................. (0.10) (0.13) (0.13) (0.06)
Net Realized and Unrealized Gain
(Loss) on Investment................. (4.57) 3.27 1.96 (3.14)
------ ------- ------ ------ ------
Total from Investment Operations......... (4.67) 3.14 1.83 (3.20)
------ ------- ------ ------ ------
Less Distributions from:
Net Realized Gain on Investments....... (0.92) -- -- (0.44)
------ ------- ------ ------ ------
Net Asset Value, End of Period........... $ $ 8.71 $14.30 $11.16 $9.33
======= ====== ====== ====== ======
Total Investment Return at Net Asset
Value(%) (34.40%) 28.32% 19.61% (25.18)%
Net Assets, End of Period (in millions).. $ $160.5 $253.2 $206.0 $205.7
Ratio of Expenses to Average Net
Assets (%) 1.59% 1.36% 1.50% 1.40%
Ratio of Net Investment Income to
Average Net Assets (%)................. (0.93%) (0.88%) (1.19%) (0.51%)
Portfolio Turnover Rate (%)............... 126% 143% 49% 155%

LB OPPORTUNITY GROWTH FUND CLASS B SHARES

Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
---------- ----------- ----------- -------------------------
Net Asset Value, Beginning of Period..... $ $13.99 $11.00 $ 9.27 $12.97
------ ------ ------- ------ ------
Investment Operations:
Net Investment Income.................. (0.07) (0.14) (0.20) (0.08)
Net Realized and Unrealized Gain
(Loss) on Investment................. (4.55) 3.13 1.93 (3.18)
------ ------ ------- ------ ------
Total from Investment Operations......... (4.62) 2.99 1.73 (3.26)
------ ------ ------- ------ ------
Less Distributions from:
Net Realized Gain on Investments....... (0.92) -- -- (0.44)
------ ------ ------- ------ ------
Net Asset Value, End of Period........... $ $ 8.45 $13.99 $11.00 $ 9.27
====== ====== ======= ====== ======
Total Investment Return at Net Asset
Value(%) (34.84%) 27.36% 18.66% (25.66%)
Net Assets, End of Period (in millions).. $ $11.6 $14.8 $8.5 $4.2
Ratio of Expenses to Average Net
Assets (%) 2.34% 2.11% 2.25% 2.15%
Ratio of Net Investment Income to
Average Net Assets (%)................. (1.68%) (1.63%) (1.94%) (1.26%)
Portfolio Turnover Rate (%).............. 126% 143% 49% 155%

LB MID CAP GROWTH FUND CLASS A SHARES

Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
---------- ----------- ---------- ---------- -----------

Net Asset Value, Beginning of Period ................ $ $18.29 $12.93 $ 9.19 $10.33
------ ------ ------ ------ ------
Investment Operations:
Net Investment Income................................ (0.11) (0.15) (0.13) 0.36
Net Realized and Unrealized Gain
(Loss) on Investments ............................. (5.40) 5.98 3.87 (0.89)
------ ------ ------ ------ ------
Total from Investment Operations .................... (5.51) 5.83 3.74 (0.53)
------ ------ ------ ------ ------
Less Distributions from:
Net Investment Income......................... -- -- -- (0.37)
Net Realized Gains on Investments............. (1.35) (0.47) -- (0.24)
------ ------ ------ ------ ------
Total Distributions................................ (1.35) (0.47) -- (0.61)
------ ------ ------ ------ ------
Net Asset Value, End of Period .................... $ $11.43 $18.29 $12.93 $ 9.19
====== ====== ====== ====== ======
Total Investment Return at
Net Asset Value % .............................. (32.17%) 46.26% 40.70% (5.28%)
Net Assets, End of Period ($ in millions) ......... $ $107.7 $140.7 $59.2 $31.9
Ratio of Expenses to Average
Net Assets (1) ................................... 1.41% 1.56% 1.95% 1.95%
Ratio of Net Investment Income to
Average Net Assets (1)............................ (0.73%) (0.87%) (1.34%) 1.93%
Portfolio Turnover Rate ........................... 137% 118% 145% 436%
-----------------
(1) Effective May 30, 1997, through October 31, 1999, the investment adviser voluntarily lowered the expense limit to
1.95% for Class A shares. Effective January 1, 2001, the investment adviser voluntarily agreed to waive 35 basis
points (0.35%) from the advisory fees payable by LB Mid Cap Growth Fund. Had the investment adviser not undertaken
such actions, for Class A shares, the ratio of expenses to average net assets would have been ____, 1.69%, 2.07%,
and 2.22%, and the ratio of net investment income to average net assets would have been _____, (1.01%), (1.46%),
and 1.66%, respectively, for the years ended October 31, 2002, 2001, 1999 and 1998.

LB MID CAP GROWTH FUND CLASS B SHARES

Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
---------- ----------- ---------- ---------- -----------

Net Asset Value, Beginning of Period ............. $ $17.87 $12.74 $ 9.12 $10.33
------ ------ ------ ------ ------
Investment Operations:
Net Investment Income.............................. (0.07) (0.14) (0.19) 0.30
Net Realized and Unrealized Gain
(Loss) on Investments ........................... (5.39) 5.74 3.81 (0.90)
------ ------ ------ ------ ------
Total from Investment Operations .................. (5.46) 5.60 3.62 (0.60)
------ ------ ------ ------ ------
Less Distributions from:
Net Investment Income......................... -- -- -- (0.37)
Net Realized Gains on Investments............. (1.35) (0.47) -- (0.24)
------ ------ ------ ------ ------
Total Distributions................................ (1.35) (0.47) -- (0.61)
------ ------ ------ ------ ------
Net Asset Value, End of Period .................... $11.06 $17.87 $12.74 $ 9.12
====== ====== ====== ====== ======
Total Investment Return at
Net Asset Value % .............................. (32.68%) 45.11% 39.69% (6.00%)
Net Assets, End of Period ($ in millions) ......... $31.8 $36.4 $15.8 $ 6.4
Ratio of Expenses to Average
Net Assets (1) ................................... 2.16% 2.31% 2.70% 2.70%
Ratio of Net Investment Income to
Average Net Assets (1)............................ (1.48%) (1.62%) (2.09%) 1.18%
Portfolio Turnover Rate ........................... 137% 118% 145% 436%
-----------------
(1) Effective October 31, 1997, through October 31, 1999, the investment adviser voluntarily lowered the expense limit
to 2.70% for Class B shares. Effective January 1, 2001, the investment adviser voluntarily agreed to waive 35 basis
points (0.35%) from the advisory fees payable by LB Mid Cap Growth Fund. Had the investment adviser not undertaken
such actions, for Class B shares, the ratio of expenses to average net assets would have been ____, 2.44%, 2.82%
and 2.97% and the ratio of net investment income to average net assets would have been ____, (1.76%), (2.21%)
and 0.91%, respectively, for the years ended October 31, 2002, 2001, 1999 and 1998.

LB WORLD GROWTH FUND CLASS A SHARES

Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period............ $ $12.38 $12.55 $10.58 $10.09
------ ------ ------ ------ ------
Investment Operations:
Net Investment Income...................... (0.04) (0.08) (0.01) --
Net Realized and Unrealized Gain (Loss)
on Investments.......................... (3.14) 0.30 2.05 0.67
------ ------ ------ ------ ------
Total from Investment Operations................ (3.18) 0.22 2.04 0.67
------ ------ ------ ------ ------
Less Distributions from:
Net Investment Income...................... -- -- (0.07) (0.04)
Net Realized Gains on Investments.......... (1.00) (0.39) -- (0.14)
------ ------ ------ ------ ------
Total Distributions............................. (1.00) (0.39) (0.07) (0.18)
------ ------ ------ ------ ------
Net Asset Value, End of Period.................. $ 8.20 $12.38 $12.55 $10.58
====== ====== ====== ====== ======
Total Investment Return at Net Asset Value (%) (27.80%) 1.78% 19.21% 6.80%
Net Assets, End of Period (in millions)......... $72.6 $102.4 $87.6 $73.1
Ratio of Expenses to Average Net Assets (1)..... 1.93% 1.84% 1.88% 1.86%
Ratio of Net Investment Income to Average
Net Assets (1).............................. (0.38%) (0.56%) (0.08%) 0.06%
Portfolio Turnover Rate......................... 30% 40% 18% 20%
------------------
(1) The investment adviser has voluntarily agreed to limit its advisory fee to a flat rate of 0.75% of average daily
net assets of the LB World Growth Fund. Effective January 1, 2001, the investment adviser has also voluntarily
agreed to waive an additional 15 basis points (0.15%) from the advisory fees payable by LB World Growth Fund.
Without such waivers, the ratio of expenses to average net assets would have been ___, 2.13%, __,___and _____,
and the ratio of net investment income to average net assets would have been ____,(0.58%), ___,_____ and __ for
the year ended October 31, 2002, 2001, 2000, 1999, and 1998.

LB WORLD GROWTH FUND CLASS B SHARES

Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period............... $ $12.13 $12.39 $10.51 $10.09
------ ------ ------ ------ ------
Investment Operations:
Net Investment Income......................... (0.05) (0.10) (0.03) 0.01
Net Realized and Unrealized Gain (Loss)
on Investments............................. (3.12) 0.23 1.97 0.59
------ ------ ------ ------ ------
Total from Investment Operations................... (3.17) 0.13 1.94 0.60
------ ------ ------ ------ ------
Less Distributions from:
Net Investment Income......................... -- -- (0.06) (0.04)
Net Realized Gains on Investments............. (1.00) (0.39) -- (0.14)
------ ------ ------ ------ ------
Total Distributions................................ (1.00) (0.39) (0.06) (0.18)
------ ------ ------ ------ ------
Net Asset Value, End of Period..................... $ 7.96 $12.13 $12.39 $10.51
====== ====== ====== ====== ======
Total Investment Return at Net Asset Value (%) (28.27%) 0.97% 18.28% 6.10%
Net Assets, End of Period (in millions)............ $10.8 $12.6 $8.1 $3.5
Ratio of Expenses to Average Net Assets (1)........ 2.68% 2.59% 2.63% 2.61%
Ratio of Net Investment Income to Average Net
Assets (1) (1.13%) (1.31%) (0.83%) (0.69%)
Portfolio Turnover Rate............................ 30% 40% 18% 20%
------------------
(1) The investment adviser has voluntarily agreed to limit its advisory fee to a flat rate of 0.75% of average daily
net assets of the LB World Growth Fund. Effective January 1, 2001, the investment adviser has also voluntarily
agreed to waive an additional 15 basis points (0.15%) from the advisory fees payable by LB World Growth Fund.
Without such waivers, the ratio of expenses to average net assets would have been ___, 2.88%, ___, __, and ___,
and the ratio of net investment income to average net assets would have been ____, (1.33%), ____, ___, and ___
for the year ended October 31, 2002, 2001, 2000, 1999, and 1998.

LB GROWTH FUND CLASS A SHARES

For the period from
October 29, 1999
Year Ended Year Ended (effective date) to
10/31/02 10/31/01 October 31, 2000
---------- ---------- ------------------
Net Asset Value,
Beginning of Period..... $ $18.61 $16.50
------ ------ ------
Investment Operations:
Net Investment Income...... (0.07) (0.06)
Net Realized and Unrealized
Gain (Loss) on Investments(1) (7.19) 2.17
------ ------ ------
Total from Investment
Operations (7.26) 2.11
------ ------ ------
Net Asset Value End of
Period.................. $ $11.35 $18.61
====== ====== ======
Total Investment Return a
Net Asset Value(%)... (39.01%) 12.79%
Net Assets, End of Period
(in millions)........... $24.8 $27.7
Ratio of Expenses to
Average Net Assets (%)(2) 1.47% 1.30%
Ratio of Net Investment
Income to Average Net
Assets (%)(2)........... (0.54%) (0.55%)
Portfolio Turnover Rate (%).... 14% 17%
-----------------------
(1) The amount shown is a balancing figure and may not accord with the change in
aggregate gains and losses of portfolio securities due to the timing of sales
and redemptions of fund shares.
(2) Effective October 29, 1999 through December 31, 2000, the investment adviser
voluntarily lowered the expense limit to 1.30% for Class A shares. Effective
January 1,2001 the investment adviser voluntarily agreed to waive 65 basis points
(0.65%) from the advisory fees and other expenses payable by LB Growth Fund. Had
such actions not been taken, for Class A shares, the ratio of expenses to average
net assets would have been ____, 2.11% and 1.93% and the ratio of net investment
income to average net assets would have been ___, (1.18%) and (1.18%), respectively,
for the year ended October 31, 2002 and 2001, and for the period from October 29,
1999 to October 31, 2000.

LB GROWTH FUND CLASS B SHARES

For the period from
October 29, 1999
Year Ended Year Ended (effective date) to
10/31/02 10/31/01 October 31, 2000
---------- ---------- ------------------
Net Asset Value,
Beginning of Period..... $ $18.47 $16.50
------ ------ ------
Investment Operations:
Net Investment Income...... (0.08) (0.15)
Net Realized and Unrealized
Gain (Loss) on Investments(1) (7.21) 2.12
------ ------ ------
Total from Investment
Operations (7.29) 1.97
------ ------ ------
Net Asset Value End of
Period.................. $ $11.18 $18.47
====== ====== ======
Total Investment Return a
Net Asset Value(%)... (39.47%) 11.94%
Net Assets, End of Period
(in millions)........... $7.3 $6.8
Ratio of Expenses to
Average Net Assets (%)(2) 2.22% 2.05%
Ratio of Net Investment
Income to Average Net
Assets (%)(2)........... (1.29%) (1.30%)
Portfolio Turnover Rate (%).... 14% 17%
-----------------------
(1) The amount shown is a balancing figure and may not accord with the change in
aggregate gains and losses of portfolio securities due to the timing of sales
and redemptions of fund shares.
(2) Effective October 29, 1999 through December 31, 2000, the investment adviser
voluntarily lowered the expense limit to 2.05% for Class B shares. Effective
January 1,2001 the investment adviser voluntarily agreed to waive 65 basis
points (0.65%) from the advisory fees and other expenses payable by LB Growth
Fund. Had such actions not been taken, for Class B shares, the ratio of expenses
to average net assets would have been ____, 2.86% and 2.68% and the ratio of net
investment income to average net assets would have been ____, (1.93%) and (1.93%),
respectively, for the year ended October 31, 2002 and 2001, and for the period
from October 29, 1999 to October 31, 2000.

LB FUND CLASS A SHARES

Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
-------- --------- -------- -------- --------
Net Asset Value,
Beginning of Period..... $ $28.30 $31.22 $27.94 $26.98
------ ------ ------ ------ ------
Investment Operations:
Net Investment Income...... 0.04 0.04 0.07 0.13
Net Realized and Unrealized
Gain (Loss) on Investments. (8.01) 1.52 6.42 3.57
------ ------ ------ ------ ------
Total from Investment
Operations (7.97) 1.56 6.49 3.70
------ ------ ------ ------ ------
Less Distributions from:
Net Investment Income... (0.01) (0.04) (0.08) (0.12)
Net Realized Gain on
Investments............. (1.01) (4.44) (3.13) (2.62)
------ ------ ------ ------ ------
Total Distributions........ (1.02) (4.48) (3.21) (2.74)
------ ------ ------ ------ ------
Net Asset Value End of
Period.................. $ $19.31 $28.30 $31.22 $27.94
====== ====== ====== ====== ======
Total Investment Return a
Net Asset Value(%)... (29.07%) 5.07% 25.60% 15.07%
Net Assets, End of Period
(in millions)........... $976.1 $1,447.7 $1,424.4 $1,120.5
Ratio of Expenses to
Average Net Assets (%)(1) 0.96% 0.83% 0.85% 0.86%
Ratio of Net Investment
Income to Average Net
Assets (%)(1)........... 0.16% 0.16% 0.24% 0.47%
Portfolio Turnover Rate (%).... 21% 47% 57% 57%
-----------------------
(1) Effective January 1, 1997 through December 31, 2000, the investment adviser voluntarily agreed
to waive five basis points (0.05%) from the advisory fees payable by LB Fund. Had the investment
adviser not undertaken such action, for Class A shares, the ratio of expenses to average net
assets would have been 0.97%, 0.88%, 0.90%, and 0.91%, and the ratio of net investment income
to average net assets would have been 0.15%, 0.11%, 0.19%, and 0.42%, respectively, for the
years ended October 31, 2001, 2000, 1999, and 1998.

LB FUND CLASS B SHARES

Net Assets, End of Period
(in millions)........... $71.5 $86.8 $63.3 $25.0
Ratio of Expenses to
Average Net Assets (%)(1) 1.71% 1.58% 1.60% 1.61%
Ratio of Net Investment
Income to Average Net
Assets (%)(1)........... (0.59%) (0.59%) (0.51%) (0.28%)
Portfolio Turnover Rate (%).... 21% 47% 57% 57%
-----------------------
(1) Effective January 1, 1997 through December 31, 2000, the investment adviser voluntarily
agreed to waive five basis points (0.05%) from the advisory fees payable by LB Fund. Had
the investment adviser not undertaken such action, for Class B shares, the ratio of
expenses to average net assets would have been 1.72%, 1.63%, 1.65% and 1.66% and the
ratio of net investment income to average net assets would have been (0.60%), (0.64%),
(0.56%) and (0.33%), respectively, for the years ended October 31, 2001, 2000, 1999 and
1998.

LB VALUE FUND CLASS A SHARES

Net Asset Value End of
Period.................. $ $12.92 $15.77
====== ====== ======
Total Investment Return a
Net Asset Value(%)... (17.86%) 8.76%
Net Assets, End of Period
(in millions)........... $20.6 $15.1
Ratio of Expenses to
Average Net Assets (%)(1) 1.23% 1.30%
Ratio of Net Investment
Income to Average Net
Assets (%)(1)........... 0.44% 0.24%
Portfolio Turnover Rate (%).... 35% 26%
-----------------------
(1) Effective October 29, 1999 through October 31, 2000, the investment adviser voluntarily
lowered the expense limit to 1.30% for Class A shares. Effective January 1, 2001 the
investment adviser voluntarily agreed to waive 65 basis points (0.65%) from the advisory
fees and other expenses payable by LB Value Fund. Had such actions not been taken, for
Class A shares, the ratio of expenses to average net assets would have been ___, 1.85%
and 2.14% and the ratio of net investment income to average net assets would have been
___, (0.18%) and (0.60%), respectively, for the year ended October 31, 2002 and 2001 and
the period from October 29, 1999 to October 31, 2000.

LB VALUE FUND CLASS B SHARES

For the period from
October 29, 1999
Year Ended Year Ended (effective date) to
10/31/02 10/31/01 October 31, 2000
---------- ---------- ------------------
Net Asset Value,
Beginning of Period..... $ $15.65 $14.50
------ ------ ------
Investment Operations:
Net Investment Income.(Loss) (0.01) (0.05)
Net Realized and Unrealized
Gain (Loss) on Investments. (2.88) 1.20
------ ------ ------
Total from Investment
Operations (2.89) 1.15
------ ------ ------
Net Asset Value End of
Period.................. $12.76 $15.65
====== ====== ======
Total Investment Return a
Net Asset Value(%)... (18.47%) 7.93%
Net Assets, End of Period
(in millions)........... $5.3 $3.7
Ratio of Expenses to
Average Net Assets (%)(1) 1.98% 2.05%
Ratio of Net Investment
Income to Average Net
Assets (%)(1)........... (0.31%) (0.51%)
Portfolio Turnover Rate (%).... 35% 26%
-----------------------
(1) Effective October 29, 1999 through October 31, 2000, the investment adviser voluntarily
lowered the expense limit to 2.05% for Class B shares. Effective January 1, 2001 the
investment adviser voluntarily agreed to waive 65 basis points (0.65%) from the advisory
fees and other expenses payable by LB Value Fund. Had such actions not been taken, for
Class B shares, the ratio of expenses to average net assets would have been ____, 2.60%
and 2.89% and the ratio of net investment income to average net assets would have been
____, (0.93%) and (1.35%), respectively, for the year ended October 31, 2002 and 2001
and the period from October 29, 1999 to October 31, 2000.

LB HIGH YIELD FUND CLASS A SHARES

Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
-------- -------- -------- -------- --------
Net Asset Value,
Beginning of Period... $ $ 6.72 $ 7.87 $ 8.09 $ 9.58
------ ------ ------ ------ ------
Investment Operations:
Net Investment Income.. 0.69 0.84 0.82 0.86
Net Realized and
Unrealized Gain (Loss)
on Investments........ (1.42) (1.19) (0.20) (1.32)
------ ------ ------ ------ ------
Total from Investment
Operations............ (0.73) (0.35) 0.62 (0.46)
------ ------ ------ ------ ------
Less Distributions from:
Net Investment Income. (0.77) (0.80) (0.84) (0.85)
Net Realized Gain
on Investments........ -- -- -- (0.18)
------ ------ ------ ------ ------
Total Distributions.... (0.77) (0.80) (0.84) (1.03)
------ ------ ------ ------ ------
Net Asset Value End
of Period............. $ $ 5.22 $ 6.72 $ 7.87 $ 8.09
====== ====== ====== ====== ======
Total Investment
Return at Net
Asset Value(%) (11.49%) (5.21%) 7.69% (5.55%)
Net Assets, End of
Period (in millions).. $607.9 $727.3 $823.2 $784.8
Ratio of Expenses to
Average Net Assets (%)(1) 0.99% 0.87% 0.86% 0.84%
Ratio of Net Investment
Income to Average
Net Assets (%)(1)..... 11.62% 10.88% 9.96% 9.32%
Portfolio Turnover Rate 65% 60% 55% 73%
-------------------
(1) Effective January 1, 1997 through December 31, 2000, the investment adviser voluntarily
agreed to waive five basis points (0.05%) from the advisory fees payable by LB High Yield
Fund. Had the investment adviser not undertaken such action, for Class A Shares, the
ratio of expenses to average net assets would have been 1.00%, 0.92%, 0.91%, and 0.89%,
and the ratio of net investment income to average net assets would have been 11.61%,
10.83%, 9.91%, and 9.27%, respectively, for the years ended October 31, 2001, 2000, 1999,
and 1998.

LB HIGH YIELD FUND CLASS B SHARES

Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
-------- -------- -------- -------- --------
Net Asset Value,
Beginning of Period... $ $6.72 $7.86 $8.08 $9.58
----- ----- ----- ----- -----
Investment Operations:
Net Investment Income . 0.65 0.78 0.77 0.79
Net Realized and
Unrealized Gain (Loss)
on Investments........ (1.43) (1.18) (0.21) (1.31)
----- ----- ----- ----- -----
Total from Investment
Operations............ (0.78) (0.40) 0.56 (0.52)
----- ----- ----- ----- -----
Less Distributions from:
Net Investment Income. (0.72) (0.74) (0.78) (0.80)
Net Realized Gain
on Investments........ -- -- -- (0.18)
----- ----- ----- ----- -----
Total Distributions.... (0.72) (0.74) (0.78) (0.98)
----- ----- ----- ----- -----
Net Asset Value End
of Period............. $ $5.22 $6.72 $7.86 $8.08
====== ===== ===== ===== =====
Total Investment
Return at Net
Asset Value(%) (12.14%) (5.79%) 6.92% (6.24%)
Net Assets, End of
Period (in millions).. $37.8 $39.0 $34.4 $19.3
Ratio of Expenses to
Average Net Assets (%)(1) 1.74% 1.62% 1.61% 1.59%
Ratio of Net Investment
Income to Average
Net Assets (%)(1)..... 10.87% 10.13% 9.21% 8.57%
Portfolio Turnover Rate 65% 60% 55% 73%
-------------------
(1) Effective January 1, 1997 through December 31, 2000, the investment adviser
voluntarily agreed to waive five basis points (0.05%) from the advisory fees
payable by LB High Yield Fund. Had the investment adviser not undertaken such
action, for Class B shares, the ratio of expenses to average net assets would
have been 1.75%, 1.67%, 1.66% and 1.64% and the ratio of net investment income
to average net assets would have been 10.86%, 10.08%, 9.16% and 8.52%,
respectively, for the years ended October 31, 2001, 2000, 1999 and 1998.

LB INCOME FUND CLASS A SHARES

Net Asset Value End of
Period.................... $ $ 8.71 $ 8.19 $ 8.22 $ 8.78
====== ====== ====== ====== ======
Total Investment Return
at Net Asset
Value(%) .... 13.25% 6.02% (0.69%) 8.42%
Net Assets, End of
Period (in millions).... $657.3 $611.0 $679.5 $739.1
Ratio of Expenses to
Average Net Assets (%)(1) 0.83% 0.83% 0.82% 0.80%
Ratio of Net Investment
Income to Average
Net Assets (%)(1)........ 5.66% 6.41% 5.93% 6.16%
Portfolio Turnover Rate (%) 175% 111% 72% 98%
------------------------
(1) Effective January 1, 1997, the investment adviser voluntarily agreed to waive five
basis points (0.05%) from the advisory fees payable by LB Income Fund. Had the
investment adviser not undertaken such action, for Class A Shares, the ratio of
expenses to average net assets would have been ___, 0.88%, 0.88%, 0.87%, and 0.85%,
and the ratio of net investment income to average net assets would have been ____,
5.61%, 6.36%, 5.88%, and 6.11%, respectively, for the years ended October 31, 2002,
2001, 2000, 1999, and 1998.

LB INCOME FUND CLASS B SHARES

Net Asset Value End of
Period.................... $ $ 8.70 $ 8.17 $ 8.20 $ 8.76
====== ====== ====== ====== ======
Total Investment Return
at Net Asset
Value(%) .... 12.45% 5.24% (1.52%) 7.65%
Net Assets, End of
Period (in millions)..... $25.3 $16.7 $14.7 $6.9
Ratio of Expenses to
Average Net Assets (%)(1). 1.58% 1.58% 1.57% 1.55%
Ratio of Net Investment
Income to Average
Net Assets (%)(1)........ 4.91% 5.66% 5.18% 5.41%
Portfolio Turnover Rate (%) 175% 111% 72% 98%
------------------------
(1) Effective January 1, 1997, the investment adviser voluntarily agreed to waive five basis points
(0.05%) from the advisory fees payable by LB Income Fund. Had the investment adviser not
undertaken such action, for Class B shares, the ratio of expenses to average net assets would
have been ____, 1.63%, 1.63%, 1.62% and 1.60% and the ratio of net investment income to average
net assets would have been ____, 4.86%, 5.61%, 5.13% and 5.36%, respectively, for the years
ended October 31, 2002, 2001, 2000, 1999 and 1998.

LB MUNICIPAL BOND FUND CLASS A SHARES

------ ------ ------ ------ ------
Net Asset Value End of Period.. $ $ 9.13 $ 8.66 $ 8.44 $ 9.11
====== ====== ====== ====== ======
Total Investment Return at
Net Asset Value(%) 10.78% 8.09% (2.62%) 8.12%
Net Assets, End of
Period (in millions)........ $609.5 $559.4 $570.6 $605.0
Ratio of Expenses to Average
Net Assets (%)(1)........... 0.72% 0.69% 0.70% 0.69%
Ratio of Net Investment Income
to Average Net Assets (%)(1). 4.90% 5.18% 4.88% 4.88%
Portfolio Turnover Rate (%).... 5% 12% 20% 14%
------------------------
(1) Effective January 1, 1997 through December 31, 2000, the investment adviser voluntarily agreed to waive
five basis points (0.05%) from the advisory fees payable by LB Municipal Bond Fund. Had the investment
adviser not undertaken such action, for Class A shares, the ratio of expenses to average net assets
would have been 0.73%, 0.74%, 0.75%, and 0.74%, and the ratio of net investment income to average net
assets would have been 4.89%, 5.13%, 4.83%, and 4.83%, respectively, for the years ended October 31,
2001, 2000, 1999, and 1998.

LB MUNICIPAL BOND FUND CLASS B SHARES

------ ------ ------ ------ ------
Net Asset Value End of Period.. $ $ 9.11 $ 8.64 $ 8.41 $ 9.09
====== ====== ====== ====== ======
Total Investment Return at
Net Asset Value(%) 9.99% 7.44% (3.44%) 7.23%
Net Assets, End of
Period (in millions)........ $15.3 $ 9.7 $ 8.4 $ 4.0
Ratio of Expenses to Average
Net Assets (%)(1)........... 1.47% 1.44% 1.45% 1.44%
Ratio of Net Investment Income
to Average Net Assets (%)(1). 4.15% 4.43% 4.13% 4.13%
Portfolio Turnover Rate (%).... 5% 12% 20% 14%
------------------------
(1) Effective January 1, 1997 through December 31, 2000, the investment adviser voluntarily agreed
to waive five basis points (0.05%) from the advisory fees payable by LB Municipal Bond Fund.
Had the investment adviser not undertaken such action, for Class B shares, the ratio of expenses
to average net assets would have been 1.48%, 1.49%, 1.50% and 1.49% and the ratio of net
investment income to average net assets would have been 4.14%, 4.38%, 4.08% and 4.08%,
respectively, for the years ended October 31, 2001, 2000, 1999 and 1998.

LB LIMITED MATURITY BOND FUND CLASS A SHARES

For the period from
October 29, 1999
Year Ended Year Ended (effective date) to
10/31/02 10/31/01 October 31, 2000
---------- ---------- ------------------
Net Asset Value,
Beginning of Period..... $ $12.41 $12.50
------ ------ ------
Investment Operations:
Net Investment Income...... 0.65 0.72
Net Realized and Unrealized
Gain (Loss) on Investments. 0.78 (0.09)
------ ------ ------
Total from Investment
Operations 1.43 0.63
------ ------ ------
Less Distributions from:
Net Investment Income... (0.65) (0.72)
Net Realized Gain on
Investments............. (0.05) --
------ ------ ------
Total Distributions........ (0.70) (0.72)
------ ------ ------
Net Asset Value End of
Period.................. $13.14 $12.41
====== ====== ======
Total Investment Return a
Net Asset Value(%)... 11.89% 5.20%
Net Assets, End of Period
(in millions)........... $39.1 $16.6
Ratio of Expenses to
Average Net Assets (%)(1) 0.81% 0.95%
Ratio of Net Investment
Income to Average Net
Assets (%)(1)........... 5.02% 5.84%
Portfolio Turnover Rate (%).... 290% 229%
-----------------------
(1) Effective October 29, 1999 through December 31, 2000, the investment adviser voluntarily lowered
the expense limit to 0.95% for Class A shares. Effective January 1, 2001 the investment adviser
voluntarily agreed to waive 30 basis points (0.30%) from the advisory fees payable by LB Limited
Maturity Bond Fund. Had the investment adviser not undertaken such actions, for Class A shares,
the ratio of expenses to average net assets would have been ____, 1.08% and 1.10% and the ratio
of net investment income to average net assets would have been ____, 4.75% and 5.69%, respectively,
for the year ended October 31, 2002 and 2001 and for the period from October 29, 1999 to October 31,
2000.

LB LIMITED MATURITY BOND FUND CLASS B SHARES

For the period from
October 29, 1999
Year Ended Year Ended (effective date) to
10/31/02 10/31/01 October 31, 2000
---------- ---------- ------------------
Net Asset Value,
Beginning of Period..... $ $12.41 $12.50
------ ------ ------
Investment Operations:
Net Investment Income...... 0.65 0.72
Net Realized and Unrealized
Gain (Loss) on Investments. 0.78 (0.09)
------ ------ ------
Total from Investment
Operations 1.43 0.63
------ ------ ------
Less Distributions from:
Net Investment Income... (0.65) (0.72)
Net Realized Gain on
Investments............. (0.05) --
------ ------ ------
Total Distributions........ (0.70) (0.72)
------ ------ ------
Net Asset Value End of
Period.................. $ $13.14 $12.41
====== ====== ======
Total Investment Return a
Net Asset Value(%)... 11.89% 5.20%
Net Assets, End of Period
(in millions)........... $5.4 $5.0
Ratio of Expenses to
Average Net Assets (%)(1) 0.81% 0.95%
Ratio of Net Investment
Income to Average Net
Assets (%)(1)........... 5.02% 5.84%
Portfolio Turnover Rate (%).... 290% 229%
-----------------------
(1) Effective October 29, 1999 through December 31, 2000, the investment adviser voluntarily
lowered the expense limit to 0.95% for Class B shares. Effective January 1, 2001 the
investment adviser voluntarily agreed to waive 30 basis points (0.30%) from the advisory
fees payable by LB Limited Maturity Bond Fund. Had the investment adviser not undertaken such
actions, for Class B shares, the ratio of expenses to average net assets would have been ___,
1.08% and 1.10% and the ratio of net investment income to average net assets would have been
____, 4.75% and 5.69%, respectively, for the year ended October 31, 2002 and 2001, and for
the period from October 29, 1999 to October 31, 2000.

LB MONEY MARKET FUND CLASS A SHARES

Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
-------- -------- -------- -------- --------
Net asset Value,
Beginning of Period... $ $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------
Investment Operations:
Net Investment Income.... 0.05 0.05 0.04 0.04
Less Distributions from:
Net Investment Income.... (0.05) (0.05) (0.04) (0.04)
------ ------ ------ ------ ------
Net Asset Value,
End of Period. $ $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total Investment Return
at Net Asset Value (%) 4.13% 5.44% 4.27% 4.82%
Net Assets, End of
Period (in millions).. $713.4 $634.7 $580.1 $493.2
Ratio of Expenses to
Average Net Assets (%)(1). 0.95% 0.95% 0.95% 0.95%
Ratio of Net Investment
Income to Average Net
Assets (%)(1). 4.02% 5.31% 4.19% 4.72%
----------------------
(1) The investment adviser has voluntarily agreed to limit the Fund's expense ratio to 0.95% of average
daily net assets. Had the investment adviser not undertaken such action to limit expenses, for Class
A shares, the ratio of expenses to average net assets would have been ____, 0.99%, 0.99%, 1.00%, and
1.04% and the ratio of net investment income to average net assets would have been ____, 3.98%, 5.27%,
4.14%, and 4.63% , respectively, for the years ended October 31, 2001, 2000, 1999, and 1998.

LB MONEY MARKET FUND CLASS B SHARES

Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
-------- -------- -------- -------- --------
Net asset Value,
Beginning of Period... $ $1.00 $1.00 $1.00 $1.00
------ ------ ----- ----- -----
Investment Operations:
Net Investment Income.... 0.05 0.05 0.04 0.04
Less Distributions from:
Net Investment Income.... (0.05) (0.05) (0.04) (0.04)
------ ------ ----- ----- -----
Net Asset Value,
End of Period. $1.00 $1.00 $1.00 $1.00
====== ====== ===== ===== =====
Total Investment Return
at Net Asset Value (%) 4.13% 5.44% 4.27% 4.82%
Net Assets, End of
Period (in millions).. $1.0 $0.3 $0.3 $0.1
Ratio of Expenses to
Average Net Assets (%)(1). 0.95% 0.95% 0.95% 0.95%
Ratio of Net Investment
Income to Average Net
Assets (%)(1). 4.02% 5.31% 4.19% 4.72%
----------------------
(1) The investment adviser has voluntarily agreed to limit the Fund's expenses
to 0.95% for Class B shares. Had the investment adviser not undertaken such
action to limit expenses, for Class B shares, the ratio of expenses to
average net assets would have been ____, 0.99%, 0.99%, 1.00% and 1.04% and the
ratio of net investment income would have been _____, 3.98%, 5.27%, 4.14% and
4.63%, respectively, for the years ended October 31, 2002, 2001, 2000, 1999 and
1998.

----------------------------------------------------------------------------

[Back cover page]

THE LUTHERAN BROTHERHOOD FAMILY OF FUNDS

By Telephone:
1-800-847-4836
press 1 to speak with a customer service representative
or
press 2 to use the Automated Service Line

By Internet:
www.thrivent.com

By Mail (New Applications):
The Lutheran Brotherhood Family of Funds
P.O. Box 310
Minneapolis, Minnesota 55440-0310

By Mail (Additional Investments):
The Lutheran Brotherhood Family of Funds
P.O. Box 59025
Minneapolis, Minnesota 55459-0025

By Mail (Redemptions, Exchanges or Other Requests):
The Lutheran Brotherhood Family of Funds
P.O. Box 9491
Minneapolis, Minnesota 55440-9491

By Express Mail:
The Lutheran Brotherhood Family of Funds
625 Fourth Avenue South
Minneapolis, Minnesota 55415

The Statement of Additional Information, which is incorporated by reference into this Prospectus, contains additional
information about the Funds. Additional information about the Funds' investments is available in the Funds' annual and
semi-annual reports to shareholders. In the Funds' annual report, you will find a discussion of the market conditions and
investment strategies that significantly affected the performance of each of the Funds during their last fiscal year. You may
request a free copy of the Statement of Additional Information, the annual report, or the semi-annual report, or you may make
additional requests or inquiries by calling 1-800-847-4836. You also may review and copy information about the Funds (including
the Statement of Additional Information) at the Public Reference Room of the Securities and Exchange Commission in Washington,
DC. You may get more information about the Public Reference Room by calling 1-202-942-8090. You also may get information about
the Funds on the EDGAR data base at the SEC Web site (www.sec.gov), and copies of the information may be obtained upon payment of
a duplicating fee, by writing the Public Reference Section of the SEC, Washington, DC 20549-6009, or by sending an email to:
publicinfo@sec.gov.

1940 Act File No. 811-1467

THE LUTHERAN BROTHERHOOD FAMILY OF FUNDS

PROSPECTUS March 1, 2003

NO LOAD
INSTITUTIONAL CLASS SHARES

The Securities and Exchange Commission has not approved or disapproved these securities or determined if this prospectus is
truthful or complete. Any representation to the contrary is a criminal offense.

TABLE OF CONTENTS

PAGE

Management
Investment Adviser
Portfolio Managers
Personal Securities Investments
Advisory Fees

Shareholder Information
Pricing Funds' Shares
Institutional Class Shares
Buying Shares
Redeeming Shares
Exchanging Shares Between Funds
Accounts with Low Balances

Distributions

Taxes

Other Securities and Investment Practices

Financial Highlights

This is the Prospectus for the Institutional Class Shares of The Lutheran Brotherhood Family of Funds, which are only offered
to Lutheran institutions, Lutheran church organizations, retirement plans sponsored by Lutheran institutions, and Lutheran
participants in the Allocation Advantage(R) mutual fund asset allocation program offered by Thrivent Investment Management Inc.
("Thrivent Investment Mgt.").

THE FUNDS

LUTHERAN BROTHERHOOD OPPORTUNITY GROWTH FUND

INVESTMENT OBJECTIVE

The investment objective of the Lutheran Brotherhood Opportunity Growth Fund ("LB Opportunity Growth Fund") is to achieve
long-term growth of capital.

PRINCIPAL STRATEGIES

Thrivent Investment Management, Inc. ("Thrivent Investment Mgt."), the Fund's investment adviser, uses both fundamental and
technical investment research techniques to determine what stocks to buy and sell. Thrivent Investment Mgt. focuses on companies
that have a strong record of earnings growth or show good prospects for growth in sales and earnings and also considers the trends
in the market as a whole.

Technical analysis generally involves studying trends and movements in a security's price, trading volume, and other
market-related factors in an attempt to discern patterns.
[END CALLOUT]

LB Opportunity Growth Fund may sell securities for a variety of reasons, such as to secure gains, limit losses, or reposition
assets into more promising opportunities.

PRINCIPAL RISKS

For these and other reasons, LB Opportunity Growth Fund may underperform other stock funds (such as large company stock
funds) when stocks of small or growth companies are out of favor.

VOLATILITY AND PERFORMANCE

The bar chart and the table include the effects of Fund expenses and assume that you sold your shares at the end of the
period. The after-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from
those shown below, and after-tax returns are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts.

The Fund commenced operations on January 8, 1993. Prior to October 31, 1997, the shares of the Fund had no specific
class designation. As of that date, all of the outstanding shares were redesignated as Class A shares and, immediately
thereafter, shares which qualified as Institutional Class shares were converted to Institutional Class shares. How a Fund has
performed in the past (before and after taxes) is not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN]

Annual
Year Return

1998 -4.08%
1999 27.54%
2000 -6.94%
2001 -18.91%
2002 -31.64%%

Best Quarter: Q4 '99 +26.50%
Worst Quarter: Q1 '01 -22.94%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
Since
Inception
1-Year 5-Year (10/31/97)

LB Opportunity Growth Fund
(Institutional Class)
Before taxes -31.64% -8.80% -9.93%
After taxes on distributions -31.64% -9.06% -10.36%
After taxes on distribution and
redemptions -19.43% -6.61% -7.43%

Russell 2000 -20.47% -1.23% -1.05%

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of a Fund. The Institutional Class shares
of the Fund have no sales charge (load) and no 12b-1 distribution fees. The Funds may charge a fee of up to $30 for a redemption
by wire. See "Redeeming Shares."

SHAREHOLDER FEES (fees paid directly from
your investment)
Maximum Sales Charge (Load) None
Maximum Deferred Sales Charge (Load) None

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)
Management Fees 0.46%
Other Expenses (including a 0.15% shareholder
servicing fee) 0.48%
Total Annual Fund Operating Expenses(1) 0.94%

(1) Thrivent Investment Mgt. has agreed to voluntarily waive the shareholder servicing fee. With this waiver, the Total Annual
Fund Operating Expenses would be 0.79% for the Institutional Class shares. This temporary waiver may be discontinued at any time.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the
end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating
expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would BE:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB Opportunity Growth Fund $96 $300 $520 $1,155

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB Opportunity Growth Fund $96 $300 $520 $1,155

LUTHERAN BROTHERHOOD MID CAP GROWTH FUND

INVESTMENT OBJECTIVE

The investment objective of the Lutheran Brotherhood Mid Cap Growth Fund ("LB Mid Cap Growth Fund") is to achieve
long-term growth of capital.

PRINCIPAL STRATEGIES

The principal strategy for achieving this objective is to invest in common stocks of companies with medium market
capitalizations. Under normal market conditions, the LB Mid Cap Growth Fund invests at least 80% of its net assets (plus the
amount of any borrowing for investment purposes) in companies that fall within the range of companies included in the Standard &
Poor's MidCap 400 Index at the time of the Fund's investment. Although market capitalizations are constantly changing, as of
December 31, 2002, the S&P MidCap 400 included companies with capitalizations between $132.5 million and $7.3 billion. Should
Thrivent Investment Mgt. determine that the Fund would benefit from reducing the percentage of invested assets from 80% to a lesser
amount, you will be notified at least 60 days prior to such a change.

Thrivent Investment Mgt., the Fund's investment adviser uses both fundamental and technical investment research techniques to
determine what stocks to buy and sell. (Fundamental investment analysis and technical investment analysis are defined on page
3.) Thrivent Investment Mgt. focuses on companies that have a strong record of earnings growth or show good prospects for growth
in sales and earnings and also considers the trends in the market as a whole.

LB Mid Cap Growth Fund may sell securities for a variety of reasons, such as to secure gains, limit losses, or reposition
assets into more promising opportunities.

PRINCIPAL RISKS

For these and other reasons, LB Mid Cap Growth Fund may underperform other stock funds (such as large company stock funds)
when stocks of medium-sized companies are out of favor.

VOLATILITY AND PERFORMANCE

The Fund commenced operations on May 30, 1997. Prior to October 31, 1997, the shares of the Fund had no specific class
designation. As of that date, all of the outstanding shares were redesignated as Class A shares and, immediately thereafter,
shares which qualified as Institutional Class shares were converted to Institutional Class shares. How a Fund has performed in
the past (before and after taxes) is not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN]

Annual
Year Return

1998 11.87%
1999 48.78%
2000 12.70%
2001 -19.94%
2002 -25.44%

Best Quarter: Q4 '99 +34.39%
Worst Quarter: Q1 '01 -23.91%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
Since
Inception
1-Year 5-Year (10/31/97)

LB Mid Cap Growth Fund
(Institutional Class)
Before taxes -25.44% 2.29% 2.35%
After taxes on distributions -25.44% 1.59% 1.20%
After taxes on distribution and
redemptions -15.62% 1.77% 1.57%

S&P MidCap 400 Index -14.51% 6.41% 7.29%

The S&P MidCap 400 Index is an unmanaged index which measures the performance of 400 widely held common stocks of mid-cap
companies.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB Mid Cap Growth Fund. The
Institutional Class shares of the Fund have no sales charge (load) and no 12b-1 distribution fees. The Funds may charge a fee of up
to $30 for a redemption by wire. See "Redeeming Shares."

SHAREHOLDER FEES (fees paid directly from
your investment)
Maximum Sales Charge (Load) None
Maximum Deferred Sales Charge (Load) None

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)
Management Fees 0.43%
Other Expenses (including a 0.15% shareholder
servicing fee) 0.50%
Total Annual Fund Operating Expenses(1) 0.93%

(1) Thrivent Investment Mgt. has agreed to voluntarily waive the shareholder servicing fee. With this waiver, the Total Annual
Fund Operating Expenses would be 0.78% for the Institutional Class shares. This temporary waiver may be discontinued at any time.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the
end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating
expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would BE:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB Mid Cap Growth Fund $95 $296 $515 $1,143

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB Mid Cap Growth Fund $95 $296 $515 $1,143

LUTHERAN BROTHERHOOD WORLD GROWTH FUND

INVESTMENT OBJECTIVE

The investment objective of the Lutheran Brotherhood World Growth Fund ("LB World Growth Fund") is to seek total return
from long-term growth of capital.

PRINCIPAL STRATEGIES

In selecting stocks, Price International generally favors companies with one or more of the following characteristics:

* Leading market position
* Attractive business niche
* Strong franchise or natural monopoly
* Technological leadership or proprietary advantages
* Seasoned management
* Earnings growth and cash flow sufficient to support growing dividends
* Healthy balance sheet with relatively low debt

LB World Growth Fund may sell securities for a variety of reasons, such as to secure gains, limit losses, or reposition
assets into more promising opportunities.

PRINCIPAL RISKS

The economies and financial markets of certain regions - such as Latin America and Asia - can be highly interdependent and
may decline all at the same time.

For these and other reasons, LB World Growth Fund may underperform other stock funds (such as U.S. stock funds) when
international stocks are out of favor.

VOLATILITY AND PERFORMANCE

The Fund commenced operations on September 5, 1995. Prior to October 31, 1997, the shares of the Fund had no specific
class designation. As of that date, all of the outstanding shares were redesignated as Class A shares and, immediately
thereafter, shares which qualified as Institutional Class shares were converted to Institutional Class shares. How a Fund has
performed in the past (before and after taxes) is not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN]

Annual
Year Return

1998 15.98%
1999 33.05%
2000 -16.58%
2001 -21.14%
2002 -17.57%

Best Quarter: Q4 '99 +24.31%
Worst Quarter: Q3 '02 -21.59%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
Since
Inception
1-Year 5-Years (10/31/97)

LB World Growth Fund (Institutional Class)
Before taxes -17.57% -3.50% -3.40%
After taxes on distributions -17.57% -3.97% -3.94%
After taxes on distribution and
redemptions -10.79% -2.57% -2.51%

Morgan Stanley EAFE Index -15.94% -2.89% 1.14%

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB World Growth Fund. The
Institutional Class shares of the Fund have no sales charge (load) and no 12b-1 distribution fees. The Funds may charge a fee of up
to $30 for a redemption by wire. See "Redeeming Shares."

SHAREHOLDER FEES (fees paid directly from
your investment)
Maximum Sales Charge (Load) None
Maximum Deferred Sales Charge (Load) None

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)
Management Fees 0.83%
Other Expenses (including a 0.15% shareholder
servicing fee) 0.56%
Total Annual Fund Operating Expenses(1) 1.39%

(1) Thrivent Investment Mgt. has agreed to voluntarily waive the shareholder servicing fee. With this waiver, the Total Annual
Fund Operating Expenses would be 1.24% for the Institutional Class shares. This temporary waiver may be discontinued at any time.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the
end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating
expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would BE:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB World Growth Fund $142 $440 $761 $1,669

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB World Growth Fund $142 $440 $761 $1,669

LUTHERAN BROTHERHOOD GROWTH FUND

INVESTMENT OBJECTIVE

The investment objective of the Lutheran Brotherhood Growth Fund ("LB Growth Fund") is to achieve long-term growth of capital.

PRINCIPAL STRATEGIES

LB Growth Fund may sell securities for a variety of reasons, such as to secure gains, limit losses, or reposition assets into
more promising opportunities.

PRINCIPAL RISKS

In addition, the prices of larger company stocks may not rise as quickly or as significantly as prices of stocks of
well-managed smaller companies when stocks of larger companies are out of favor.

For these and other reasons, LB Growth Fund may underperform other stock funds.

The success of the Fund's investment strategy depends significantly on Thrivent Investment Mgt.'s skill in assessing the
potential of the securities in which the Fund invests. Shares of LB Growth Fund will rise and fall in value and there is a risk
that you could lose money by investing in the Fund. The LB Growth Fund cannot be certain that it will achieve its objective.

VOLATILITY AND PERFORMANCE

The Fund commenced operations on October 29, 1999. How a Fund has performed in the past (before and after taxes) is not
necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN]

Annual
Year Return

2000 -13.76%
2001 -23.52%
2002 -29.17%

Best Quarter: Q4 '01 +13.86%
Worst Quarter: Q1 '01 -21.46%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
Since
Inception
1-Year (10/29/99)

LB Growth Fund (Institutional Class)
Before taxes -29.17% -17.49%
After taxes on distributions -29.17% -17.49%
After taxes on distribution and
redemptions -17.91% -13.35%

S&P 500/Barra Growth Index -23.58% -15.70%

The S&P 500/Barra Growth Index measures the performance of the growth style of investing in large cap U.S. stocks. The index
is constructed by dividing the stocks in the S&P 500 Index according to price-to-book ratios. The S&P 500/Barra Growth Index
contains stocks with higher price-to-book ratios.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB Growth Fund. The
Institutional Class shares of the Fund have no sales charge (load) and no 12b-1 distribution fees. The Funds may charge a fee of up
to $30 for a redemption by wire. See "Redeeming Shares."

SHAREHOLDER FEES (fees paid directly from
your investment)
Maximum Sales Charge (Load) None
Maximum Deferred Sales Charge (Load) None

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)
Management Fees 0.42%
Other Expenses(including a 0.15% shareholder servicing fee) 0.85%
Total Annual Fund Operating Expenses(1) 1.27%

(1) Thrivent Investment Mgt. has agreed to voluntarily waive the shareholder servicing fee. Thrivent Investment Mgt. also has
voluntarily agreed to temporarily waive a portion of its advisory fees and to bear certain expenses associated with operating LB
Growth Fund equal in the aggregate to 1.25% of the average daily net assets of LB Growth Fund. With these waiver and expense
offset provisions, the Total Annual Fund Operating Expenses would be 0.00% for the Institutional Class shares. These temporary
waiver and expense offset provisions may be discontinued at any time.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the
end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating
expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would BE:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB Growth Fund $129 $403 $697 $1,534

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB Growth Fund $129 $403 $697 $1,534

LUTHERAN BROTHERHOOD FUND

INVESTMENT OBJECTIVE

The investment objective of the Lutheran Brotherhood Fund ("LB Fund") is to seek growth of capital and income.

PRINCIPAL STRATEGIES

LB Fund may sell securities for a variety of reasons, such as to secure gains, limit losses, or reposition assets into more
promising opportunities.

PRINCIPAL RISKS

In addition, the prices of larger company stocks may not rise as quickly or as significantly as prices of stocks of
well-managed smaller companies.

For these and other reasons, LB Fund may underperform other stock funds (such as small company or medium company stock funds)
when larger company stocks are out of favor.

The success of the Fund's investment strategy depends significantly on Thrivent Investment Mgt.'s skill in assessing the
potential of the securities in which the Fund invests. Shares of LB Fund will rise and fall in value and there is a risk that you
could lose money by investing in the Fund. The LB Fund cannot be certain that it will achieve its objective.

VOLATILITY AND PERFORMANCE

The bar chart and table shown below provide an indication of the risks of investing in the LB Fund by showing changes in the
Fund's performance from year to year and by showing how the Fund's average annual returns for one and five years and since
inception of the Institutional Class shares compared to a broad-based securities market index.

The Fund commenced operations on June 2, 1970. Prior to October 31, 1997, the shares of the Fund had no specific class
designation. As of that date, all of the outstanding shares were redesignated as Class A shares and, immediately thereafter,
shares which qualified as Institutional Class shares were converted to Institutional Class shares. How a Fund has performed in
the past (before and after taxes) is not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN]

Annual
Year Return

1998 23.64%
1999 20.75%
2000 -9.41%
2001 -17.09%
2002 -24.25%

Best Quarter: Q4 '98 +22.65%
Worst Quarter: Q3 '02 -18.18%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
1-Year 5-Years Since
Inception
(10/31/1997)

LB Fund (Institutional Class)
Before taxes -24.25% -3.21% -2.21%
After taxes on distributions -24.39% -4.56% -3.91%
After taxes on distribution and
redemptions -14.89% -2.21% -1.42%

S&P 500 Index -22.10% -0.59% 0.64%

The S&P 500 Index is an unmanaged index which measures the performance of 500 widely held common stocks of large-cap
companies.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB Fund. The Institutional
Class shares of the Fund have no sales charge (load) and no 12b-1 distribution fees. The Funds may charge a fee of up to $30 for a
redemption by wire. See "Redeeming Shares."

SHAREHOLDER FEES (fees paid directly from
your investment)
Maximum Sales Charge (Load) None
Maximum Deferred Sales Charge (Load) None

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)
Management Fees 0.37%
Other Expenses (including a 0.15% shareholder
servicing fee) 0.29%
Total Annual Fund Operating Expenses(1) 0.66%

(1) Thrivent Investment Mgt. has agreed to voluntarily waive the shareholder servicing fee. With this waiver, the Total Annual
Fund Operating Expenses would be 0.51% for the Institutional Class shares. This temporary waiver may be discontinued at any time.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the
end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating
expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would BE:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB Fund $67 $211 $368 $822

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB Fund $67 $211 $368 $822

LUTHERAN BROTHERHOOD VALUE FUND

INVESTMENT OBJECTIVE

The investment objective of the Lutheran Brotherhood Value Fund ("LB Value Fund") is to achieve long-term growth of capital.

PRINCIPAL STRATEGIES

The principal strategy for achieving this objective is to invest primarily (at least 65%) in the common stocks of
undervalued companies with large market capitalizations. Thrivent Investment Mgt., the Fund's investment adviser, defines
companies with large market capitalizations according to the market capitalization classifications published by Lipper, Inc.
Although market capitalizations are constantly changing, based on Lipper's guidelines as of December 31, 2002, companies with
large market capitalizations are those with market capitalizations of at least $8.7 billion.

The price-to-book ratio represents the price of a stock divided by its net asset value. The price/book ratio can be a guide in
determining the value of a stock.
[END CALLOUT]

The Fund will invest primarily in U.S. companies, although it may also invest in foreign companies.

LB Value Fund may sell securities for a variety of reasons, such as to secure gains, limit losses, or reposition assets into
more promising opportunities.

PRINCIPAL RISKS

For these and other reasons, LB Value Fund may underperform other stock funds.

The success of the Fund's investment strategy depends significantly on Thrivent Investment Mgt.'s skill in assessing the
potential of the securities in which the Fund invests. Shares of LB Value Fund will rise and fall in value and there is a risk
that you could lose money by investing in the Fund. The LB Value Fund cannot be certain that it will achieve its objective.

VOLATILITY AND PERFORMANCE

The Fund commenced operations on October 29, 1999. How a Fund has performed in the past (before and after taxes) is not
necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN]

Annual
Year Return

2000 2.63%
2001 -8.85%
2002 -22.72%

Best Quarter: Q4 '01 +8.85%
Worst Quarter: Q3 '02 -17.39%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
Since
Inception
1-Year (10/29/99)

LB Value Fund (Institutional Class)
Before taxes -22.72% -8.39%
After taxes on distributions -23.12% -8.75%
After taxes on distribution and
redemptions -13.95% -6.74%

S&P 500/Barra Value Index -20.86% -8.12%

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB Value Fund. The
Institutional Class shares of the Fund have no sales charge (load) and no 12b-1 distribution fees. The Funds may charge a fee of up
to $30 for a redemption by wire. See "Redeeming Shares."

SHAREHOLDER FEES (fees paid directly from
your investment)
Maximum Sales Charge (Load) None
Maximum Deferred Sales Charge (Load) None

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)
Management Fees 0.40%
Other Expenses(including a 0.15% shareholder servicing fee) 0.75%
Total Annual Fund Operating Expenses(1) 1.15%

(1) Thrivent Investment Mgt. has agreed to voluntarily waive the shareholder servicing fee. Thrivent Investment Mgt. also has
voluntarily agreed to temporarily waive a portion of its advisory fees and to bear certain expenses associated with operating LB
Value Fund equal in the aggregate to 0.80% of the average daily net assets of LB Value Fund. With these waiver and expense offset
provisions, the Total Annual Fund Operating Expenses would be 0.20% for the Institutional Class shares. These temporary waiver
and expense offset provisions may be discontinued at any time.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the
end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating
expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would BE:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB Value Fund $117 $365 $633 $1,398

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- -------- --------
LB Value Fund $117 $365 $633 $1,398

LUTHERAN BROTHERHOOD HIGH YIELD FUND

INVESTMENT OBJECTIVE

The investment objective of the Lutheran Brotherhood High Yield Fund ("LB High Yield Fund") is to obtain high current
income, and, secondarily, growth of capital.

PRINCIPAL STRATEGIES

PRINCIPAL RISKS

The principal risks of LB High Yield Fund include the tendency of high-yield, high-risk bond prices to fall when the economy
is sluggish or overall corporate earnings are weak. During those times, it may become difficult for issuers of high-yield bonds to
generate sufficient cash flow or to obtain adequate access to capital markets to pay principal or interest. For all bonds, there
is a risk that an issuer will default. High-yield bonds, however, are more susceptible to the risk of default and their prices
usually fall if a number of issuers, or a high profile issuer, default or go bankrupt or if the market anticipates either of those
events.

Generally, when interest rates rise, bond prices fall, which may cause the price of shares of LB High Yield Fund to fall as
well. Bonds with longer durations and maturities tend to be more sensitive to changes in interest rates than bonds with shorter
durations or maturities. In general, the prices at which lower quality bonds are traded before they mature may be more affected
by the financial health of the issuer and the economy and less by changes in interest rates.

[BEGIN CALLOUT]
Maturity is a measure of the remaining time before the bond must be repaid. Duration is a measure of the effective, as opposed to
the actual, maturity of a fixed-income security.

Duration considers the bond's cash flows and the time value of money.
[END CALLOUT]

The success of the Fund's investment strategy depends significantly on Thrivent Investment Mgt.'s skill in assessing the
potential of the securities in which the Fund invests. Shares of LB High Yield Fund will rise and fall in value and there is a
risk that you could lose money by investing in the Fund. The LB High Yield Fund cannot be certain that it will achieve its
objective.

VOLATILITY AND PERFORMANCE

The bar chart and table shown below provide an indication of the risks of investing in the LB High Yield Fund by showing
changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for one and five years
and since inception of the Institutional Class shares compared to a broad-based securities market index.

The Fund commenced operations on April 3, 1987. Prior to October 31, 1997, the shares of the Fund had no specific class
designation. As of that date, all of the outstanding shares were redesignated as Class A shares and, immediately thereafter,
shares which qualified as Institutional Class shares were converted to Institutional Class shares. How a Fund has performed in
the past (before and after taxes) is not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN]

Annual
Year Return

1998 -1.70%
1999 7.32%
2000 -15.94%
2001 -1.59%
2002 -6.44%

Best Quarter: Q4 '01 +5.64%
Worst Quarter: Q4 '00 -11.89%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
1-Year 5-Years Since
Inception
(10/31/97)

LB High Yield Fund (Institutional Class)
Before taxes -6.44% -3.97% -3.61%
After taxes on distributions -10.16% -8.01% -7.77%
After taxes on distributions and
redemptions -3.91% -4.74% -4.49%

Lehman High Yield Index -1.41% 0.38% 0.72%

The Lehman High Yield Index is an unmanaged index which measures the performance of fixed-rate non-investment grade bonds.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB High Yield Fund. The
Institutional Class shares of the Fund have no sales charge (load) and no 12b-1 distribution fees. The Funds may charge a fee of up
to $30 for a redemption by wire. See "Redeeming Shares."

SHAREHOLDER FEES (fees paid directly from
your investment)
Maximum Sales Charge (Load) None
Maximum Deferred Sales Charge (Load) None

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)
Management Fees 0.39%
Other Expenses (including a 0.15% shareholder
servicing fee) 0.30%
Total Annual Fund Operating Expenses(1) 0.69%

(1) Thrivent Investment Mgt. has agreed to voluntarily waive the shareholder servicing fee. With this waiver, the Total Annual
Fund Operating Expenses would be 0.54% for the Institutional Class shares. This temporary waiver may be discontinued at any time.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the
end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating
expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would BE:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB High Yield Fund $70 $221 $384 $859

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB High Yield Fund $70 $221 $384 $859

LUTHERAN BROTHERHOOD INCOME FUND

INVESTMENT OBJECTIVE

PRINCIPAL STRATEGIES

PRINCIPAL RISKS

[BEGIN CALLOUT]
Effective yield on a bond is determined by the purchase price, the stated rate of interest on the bond, the time between interest
payments, and the time until maturity.
[END CALLOUT]

The success of the Fund's investment strategy depends significantly on Thrivent Investment Mgt.'s skill in assessing the
potential of the securities in which the Fund invests. Shares of LB Income Fund will rise and fall in value and there is a risk
that you could lose money by investing in the Fund. The LB Income Fund cannot be certain that it will achieve its goal.

VOLATILITY AND PERFORMANCE

The bar chart and table shown below provide an indication of the risks of investing in the LB Income Fund by showing changes
in the Fund's performance from year to year and by showing how the Fund's average annual returns for one and five years and since
inception of the Institutional Class shares compared to a broad-based securities market index.

The Fund commenced operations on June 1, 1972. Prior to October 31, 1997, the shares of the Fund had no specific class
designation. As of that date, all of the outstanding shares were redesignated as Class A shares and, immediately thereafter,
shares which qualified as Institutional Class shares were converted to Institutional Class shares. How a Fund has performed in
the past (before and after taxes) is not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN]

Annual
Year Return
1998 9.18%
1999 -2.23%
2000 10.54%
2001 7.18%
2002 5.35%

Best Quarter: Q4 '00 +3.97%
Worst Quarter: Q2 '99 -1.81%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
1-Year 5-Years Since
Inception
(10/31/97)

LB Income Fund (Institutional Class)
Before taxes 5.35% 5.91% 5.93%
After taxes on distributions 3.30% 3.42% 3.43%
After taxes on distributions and
redemptions 3.25% 3.47% 3.48%

Lehman Aggregate Bond Index 10.25% 7.55% 7.60%

The Lehman Aggregate Bond Index is an unmanaged index which measures the performance of U.S. investment grade bonds.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB Income Fund. The
Institutional Class shares of the Fund have no sales charge (load) and no 12b-1 distribution fees. The Funds may charge a fee of up
to $30 for a redemption by wire. See "Redeeming Shares."

SHAREHOLDER FEES (fees paid directly from
your investment)
Maximum Sales Charge (Load) None
Maximum Deferred Sales Charge (Load) None

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)
Management Fees 0.34%
Other Expenses (including a 0.15% shareholder
servicing fee) 0.26%
Total Annual Fund Operating Expenses(1) 0.60%

(1) Thrivent Investment Mgt. has agreed to voluntarily waive the shareholder servicing fee. With this waiver, the Total Annual
Fund Operating Expenses would be 0.45% for the Institutional Class shares. This temporary waiver may be discontinued at any time.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the
end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating
expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would BE:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB Income Fund $61 $192 $335 $750

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB Income Fund $61 $192 $335 $750

LUTHERAN BROTHERHOOD MUNICIPAL BOND FUND

INVESTMENT OBJECTIVE

PRINCIPAL STRATEGIES

PRINCIPAL RISKS

The success of the Fund's investment strategy depends significantly on Thrivent Investment Mgt.'s skill in assessing the
potential of the securities in which the Fund invests. Shares of LB Municipal Bond Fund will rise and fall in value and there is
a risk that you could lose money by investing in the Fund. The LB Municipal Bond Fund cannot be certain that it will achieve its
objective.

VOLATILITY AND PERFORMANCE

The bar chart and table shown below provide an indication of the risks of investing in the LB Municipal Bond Fund by showing
changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for one and five years
and since inception of the Institutional Class shares compared to a broad-based securities market index.

The Fund commenced operations on December 3, 1976. Prior to October 31, 1997, the shares of the Fund had no specific
class designation. As of that date, all of the outstanding shares were redesignated as Class A shares and, immediately
thereafter, shares which qualified as Institutional Class shares were converted to Institutional Class shares. How a Fund has
performed in the past (before and after taxes) is not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN]

Annual
Year Return

1998 6.34%
1999 -2.70%
2000 11.92%
2001 5.10%
2002 8.95%

Best Quarter: Q4 '00 +4.70%
Worst Quarter: Q2'99 -1.98%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
1-Year 5-Years Since
Inception
(10/31/97)

LB Municipal Bond Fund (Institutional Class)
Before taxes 8.95% 5.81% 6.08%
After taxes on distributions 8.94% 5.80% 6.08%
After taxes on distributions and
redemptions 7.52% 5.69% 5.92%

Lehman Municipal Bond Index 9.60% 6.06% 6.28%

The Lehman Municipal Bond Index is an unmanaged index which measures the performance of investment grade tax-exempt bonds.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB Municipal Bond Fund. The
Institutional Class shares of the Fund have no sales charge (load) and no 12b-1 distribution fees. The Funds may charge a fee of up
to $30 for a redemption by wire. See "Redeeming Shares."

SHAREHOLDER FEES (fees paid directly from
your investment)
Maximum Sales Charge (Load) Imposed on Purchases None
Maximum Deferred Sales Charge (Load) None

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)
Management Fees 0.32%
Other Expenses (including a 0.15% shareholder
servicing fee) 0.25%
Total Annual Fund Operating Expenses(1) 0.57%

(1) Thrivent Investment Mgt. has agreed to voluntarily waive the shareholder servicing fee. With this waiver, the Total Annual
Fund Operating Expenses would be 0.42% for the Institutional Class shares. This temporary waiver may be discontinued at any time.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the
end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating
expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would BE:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB Municipal Bond Fund $58 $183 $318 $714

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB Municipal Bond Fund $58 $183 $318 $714

LUTHERAN BROTHERHOOD LIMITED MATURITY BOND FUND

INVESTMENT OBJECTIVE

The investment objective of the Lutheran Brotherhood Limited Maturity Bond Fund ("LB Limited Maturity Bond Fund") is to
seek a high level of current income consistent with stability of principal.

PRINCIPAL STRATEGIES

PRINCIPAL RISKS

For all bonds there is a risk that an issuer will default. Lower rated and high-yield, high-risk bonds generally are more
susceptible to risk of default than higher rated bonds. In addition, it may be difficult for Thrivent Investment Mgt. to sell high-
yield bond investments in certain markets or market environments when high-yield bonds fall out of favor. For the LB Limited
Maturity Bond Fund, these risks increase as Thrivent Investment Mgt. increases the percentage of the Fund's portfolio in lower
rated investment-grade bonds or in high-yield bonds.

The success of the Fund's investment strategy depends significantly on Thrivent Investment Mgt.'s skill in assessing the
potential of the securities in which the Fund invests. Shares of LB Limited Maturity Bond Fund will rise and fall in value and
there is a risk that you could lose money by investing in the Fund. The LB Limited Maturity Bond Fund cannot be certain that it
will achieve its objective.

VOLATILITY AND PERFORMANCE

The Fund commenced operations on October 29, 1999. How a Fund has performed in the past (before and after taxes) is not
necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN]

Annual
Year Return

2000 8.22%
2001 8.34%
2002 5.15%

Best Quarter: Q1 '01 +3.44%
Worst Quarter: Q1 '02 +0.24%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
Since
Inception
1-Year (10/29/99)

LB Limited Maturity Bond Fund
(Institutional Class)
Before Taxes 5.15% 6.79%
After taxes on distributions 3.63% 4.43%
After taxes on distributions and
redemptions 3.14% 4.26%

Lehman Government Corporate 1-5 Year Bond 5.70% 8.03%

The Lehman Government Corporate 1-5 Year Bond is an unmanaged index which measures the performance of corporate and
government U.S. bonds with maturities of 1-5 years.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB Limited Maturity Bond Fund. The
Institutional Class shares of the Fund have no sales charge (load) and no 12b-1 distribution fees. The Funds may charge a fee of up
to $30 for a redemption by wire. See "Redeeming Shares."

SHAREHOLDER FEES (fees paid directly from
your investment)
Maximum Sales Charge (Load) None
Maximum Deferred Sales Charge (Load) None

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)
Management Fees 0.30%
Other Expenses(including a 0.15% shareholder servicing fee) 0.42%
Total Annual Fund Operating Expenses(1) 0.72%

(1) Thrivent Investment Mgt. has agreed to voluntarily waive the shareholder servicing fee. With this waiver, the Total Annual
Fund Operating Expenses would be 0.57% for the Institutional Class shares. This temporary waiver may be discontinued at any time.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the
end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating
expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would BE:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB Limited Maturity Bond Fund $74 $230 $401 $894

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB Limited Maturity Bond Fund $74 $230 $401 $894

LUTHERAN BROTHERHOOD MONEY MARKET FUND

INVESTMENT OBJECTIVE

The investment objective of the Lutheran Brotherhood Money Market Fund ("LB Money Market Fund") is current income
consistent with stability of principal.

PRINCIPAL STRATEGIES

The LB Money Market Fund tries to produce current income while preserving the value of your shares by investing in high
quality, short term money market instruments that mature in 397 days or less, including U.S. dollar-denominated commercial paper,
bank instruments such as certificates of deposit, U.S. government discount notes, and U.S. Treasury Bills.

PRINCIPAL RISKS

The success of the Fund's investment strategy depends significantly on Thrivent
Investment Mgt.'s skill in assessing the potential of the securities in which the Fund invests.

VOLATILITY AND PERFORMANCE

The bar chart and table shown below provide an indication of the risks of investing in the LB Money Market Fund by showing
changes in the Fund's performance from year to year and by showing the Fund's average annual returns for one and five years and
since inception of the Institutional Class shares.

The Fund commenced operations on February 1, 1979. Prior to October 31, 1997, the shares of the Fund had no specific class
designation. As of that date, all of the outstanding shares were redesignated as Class A shares and, immediately thereafter,
shares which qualified as Institutional Class shares were converted to Institutional Class shares. How a Fund has performed in
the past (before and after taxes) is not necessarily an indication of how it will perform in the future.

[GRAPHIC BAR CHART OMITTED: YEAR-BY-YEAR TOTAL RETURN]

Annual
Year Return

1998 4.99%
1999 4.64%
2000 6.01%
2001 3.84%
2002 1.34%

Best Quarter: Q4 '00 +1.44%
Worst Quarter: Q4 '02 +0.30%

Average Annual Total Returns
(periods ending
December 31, 2002)
-----------------------------
1-Year 5-Years Since
Inception
(10/31/97)

LB Money Market Fund (Institutional Class) 1.34% 4.15% 4.18%

You may call 1-800-328-4552 to obtain the Fund's current 7-day yield.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold shares of the LB Money Market Fund. The
Institutional Class shares of the Fund have no sales charge (load) and no 12b-1 distribution fees. The Funds may charge a fee of up
to $30 for a redemption by wire. See "Redeeming Shares."

SHAREHOLDER FEES (fees paid directly from
your investment)
Maximum Sales Charge (Load) None
Maximum Deferred Sales Charge (Load) None

ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund
assets)
Management Fees 0.24%
Other Expenses (including a 0.15% shareholder
servicing fee) 0.35%
Total Fund Operating Expenses(1) 0.59%

(1) Thrivent Investment Mgt. has agreed to voluntarily waive the shareholder servicing fee. With this waiver, the Total Annual
Fund Operating Expenses would be 0.44% for the Institutional Class shares. This temporary waiver may be discontinued at any time.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the
end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating
expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would BE:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB Money Market Fund $60 $189 $329 $738

You would pay the following expenses if you did not redeem your shares:

1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
LB Money Market Fund $60 $189 $329 $738

MANAGEMENT

INVESTMENT ADVISER

PORTFOLIO MANAGERS

LB Opportunity Growth Fund

Andrea J. Thomas has served as the portfolio manager of LB Opportunity Growth Fund since 2002. She also serves as
portfolio manager of the Opportunity Growth Portfolio, a series of an affiliated mutual fund group. Ms. Thomas has been with
Thrivent Investment Mgt. since 1993 and served as an associate portfolio manager from 1997 to 2002.

LB Mid Cap Growth Fund

LB World Growth Fund

LB Growth Fund

LB Fund

Frederick L. Plautz has served as the portfolio manager of LB Fund since 2002. Mr. Plautz also serves as a portfolio
manager of the following series of affiliated mutual fund groups: AAL Capital Growth Portfolio since 2001; The AAL Balanced Fund
since 1997; and The AAL Capital Growth Fund since 1995.Mr. Plautz has been with Thrivent Investment Mgt. since 1995.

LB Value Fund

LB High Yield Fund

Paul J. Ocenasek and Mark L. Simenstad serve as portfolio co-managers of LB High Yield Fund. Mr. Ocenasek has served as a
portfolio manager of LB High Yield Fund since 1997. He also has served as portfolio co-manager of High Yield Portfolio, a series
of an affiliated mutual fund group, since 2001. Mr. Ocenasek has been with Thrivent Investment Mgt. since 1987. Mr. Simenstad has
served as a portfolio manager of LB High Yield Fund since 2001, and he has been a portfolio manager with Thrivent Investment Mgt.
since 1999. Mr. Simenstad served as chief investment officer for fixed-income investing at Voyageur Asset Management from 1996
until 1999.

LB Income Fund

LB Municipal Bond Fund

Janet I. Grangaard has served as portfolio manager of LB Municipal Bond Fund since 2002. She also has served as
portfolio manager of The AAL Municipal Bond Fund, a series of an affiliated mutual fund group, since 2002. Ms. Grangaard has been
a portfolio manager with Thrivent Investment Mgt. since 1994.

LB Limited Maturity Bond Fund

LB Money Market Fund

PERSONAL SECURITIES INVESTMENTS

Personnel of Thrivent Investment Mgt. and Price International may invest in securities for their own account pursuant to
codes of ethics that establish procedures for personal investing and restrict certain transactions. Transactions in securities
that may be held by the Funds are permitted, subject to compliance with applicable provisions under the codes of ethics.

ADVISORY FEES

Each Fund pays an investment advisory fee to Thrivent Investment Mgt. During the fiscal year ended October 31, 2002,
Thrivent Investment Mgt. received the following advisory fees, expressed as a percentage of the Fund's net assets:

LB Opportunity Growth Fund 0.46%
LB Mid Cap Growth Fund(1) 0.08%
LB World Growth Fund(2) 0.60%
LB Growth Fund(3) 0.00%
LB Fund 0.37%
LB Value Fund(3) 0.00%
LB High Yield Fund 0.39%
LB Income Fund(4) 0.29%
LB Municipal Bond Fund 0.32%
LB Limited Maturity Bond Fund(5) 0.00%
LB Money Market Fund(6) 0.20%
------------
(1) After giving effect to a fee waiver of 0.35%.
(2) After giving effect to a fee waiver of 0.23%.
(3) After giving effect to a fee waiver and expense reimbursement of 0.65%.
(4) After giving effect to a fee waiver of 0.05%.
(5) After giving effect to a fee waiver and expense reimbursement of 0.30%.
(6) After giving effect to a fee waiver of 0.04%.

SHAREHOLDER INFORMATION

[BEGIN CALLOUT]

HOW TO CONTACT US

By Telephone:
1-800-847-4836
press 1 to speak with a customer service representative
or
press 2 to use the Automated Service Line

By Internet:
www.thrivent.com

By Mail (New Applications):
The Lutheran Brotherhood Family of Funds
P.O. Box 310
Minneapolis, Minnesota 55440-0310

By Mail (Additional Investments):
The Lutheran Brotherhood Family of Funds
P.O. Box 59025
Minneapolis, Minnesota 55459-0025

By Mail (Redemptions, Exchanges or Other Requests):
The Lutheran Brotherhood Family of Funds
P.O. Box 9491
Minneapolis, Minnesota 55440-9491

By Express Mail:
The Lutheran Brotherhood Family of Funds
625 Fourth Avenue South
Minneapolis, Minnesota 55415

[END CALLOUT]

PRICING FUNDS' SHARES

INSTITUTIONAL CLASS SHARES

The Lutheran Brotherhood Family of Funds has adopted a system of multiple classes of shares for each of the Funds. There is
no sales load imposed in connection with the purchase of Institutional Class shares and such shares are not subject to any Rule
12b-1 fee. Effective March 1, 2003, Thrivent Investment Mgt. has agreed to voluntarily waive the shareholder servicing fee of
0.15% on the average daily net assets of Institutional Class shares. The temporary waiver of the shareholder servicing fee may be
discontinued at any time.

Institutional Class shares are offered to Lutheran institutions, Lutheran church organizations, retirement plans sponsored by
Lutheran institutions and Lutheran participants in the Allocation Advantage(R) mutual fund asset allocation program offered by
Thrivent Investment Mgt. Because the sales charges and expenses vary between the Class A shares, Class B shares and Institutional
Class shares, performance will vary with respect to each class. A copy of the Class A and Class B prospectus may be obtained by
writing us, calling toll free 1-800-847-4836, or downloading it from our Web site (www.thrivent.com).

BUYING SHARES

OPENING AN ACCOUNT

REQUIRED MINIMUM INVESTMENTS

You may combine your purchases of Class A, Class B and Institutional Class shares of the Funds to meet the minimum
investment requirements. As long as the initial minimum investment requirements are maintained, there are no subsequent minimum
investment requirements. Please note that the following minimum investment requirements do not apply to shares purchased through
the Allocation Advantage mutual fund asset allocation program described below.

------------------------------------------- ------------------------------ ------------------------------
Initial Purchase (Aggregate) Initial Purchase (Per Fund)
Lutheran Institutions $500,000 $50,000
Lutheran Congregations $250,000 $25,000
------------------------------------------- ------------------------------ ------------------------------

The Allocation Advantage mutual fund asset allocation program is a fee-based investment advisory service offered by Thrivent
Investment Mgt. to persons who make an initial investment of $100,000. Lutheran participants in the Allocation Advantage program
may purchase Institutional Class shares of any Fund by making an initial minimum investment of $5,000 for a non-IRA account and
$1,000 for an IRA account. Once the purchase minimums have been met, systematic investments of shares of mutual funds have a
minimum purchase requirement of $100.

Thrivent Investment Mgt. will charge participants in the Allocation Advantage program a fee of $50.00 for any redemption of
shares of a mutual fund that have been held in the participant's account for less than six months. However, if the redemption of
shares is made through our Systematic Withdrawal Plan, Thrivent Investment Mgt. will charge the participant a fee of $5.00 for
each such redemption. In addition, Thrivent Investment Mgt. will also charge a fee of $15.00 for any redemption from a
participant's account of shares of a mutual fund that is not available through the Allocation Advantage program.

Shares of the Funds are issued on days on which the New York Stock Exchange ("NYSE") is open, which generally are weekdays
other than national holidays. Your order will be considered received when your check or other payment is received in good order.
Orders that are received before the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time) will be processed at
the net asset value calculated that day. Orders received after the close of regular trading on the NYSE will be processed at the
net asset value calculated on the following business day. The Funds reserve the right to reject any purchase request.

INITIAL PURCHASES

You may purchase initial shares through your Registered Representative or in any of the following ways:

* By mail
* By wire transfer

Initial Purchases by Mail

To buy shares of the Funds by mail:

* Complete and mail your new account application for each different account registration. If you do not complete the
application properly, your purchase may be delayed or rejected.

* Make your check payable to the Fund you are buying. If more than one Fund, make your check payable to "The Lutheran
Brotherhood Family of Funds."

Initial Purchases by Wire Transfer

In order to buy shares of the Funds by wire transfer, your bank must be a member of, or have a corresponding relationship
with a member of, the Federal Reserve System.

Step 1: Call our Interaction Center at (800) THRIVENT (847-4836) and
provide the following information:

Step 2: Instruct your bank to use the following instructions when wiring
funds:

Wire transfer to:
Wells Fargo Bank, NA
6th Street and Marquette Avenue
Minneapolis, Minnesota 55479
ABA #091000019
Account #00-003-156

Credit:
Thrivent Financial Investor Services Inc. as Agent for the benefit of The Lutheran Brotherhood Family of Funds
Account #00-003-156

Further Credit:
[Name of the Fund]
[Shareholder Account Number]
[Shareholder Registration/Name]

Please call (800) THRIVENT (847-4836) prior to the wire transfer in order to obtain a confirmation number and to ensure
prompt and accurate handling of funds.

Step 3: Mail your application.

The Fund and its transfer agent are not responsible for the consequences of delays resulting from the banking or Federal
Reserve wire transfer system, or from incomplete wiring instructions.

ADDITIONAL PURCHASES

You may purchase additional shares through your Registered Representative or in any of the following ways:

* By mail
* By telephone
* By the Internet
* By wire transfer
* Through the Automatic Investment Plan

Additional Purchases By Mail

To make additional purchases by mail, make your check payable to the specific Fund in which you are investing.
Please indicate your Fund account number on the face of your check. If you have more than one account, always verify that you are
investing in the proper account. This will help ensure the proper handling of the transaction.

Additional Purchases By Telephone

Additional Purchases By the Internet

Additional Purchases By Wire Transfer

Instruct your bank to use the following instructions when wiring funds:

Wire transfer to:
Wells Fargo Bank, NA
6th Street and Marquette Avenue
Minneapolis, Minnesota 55479
ABA #091000019
Account #00-003-156

Credit:
Thrivent Financial Investor Services Inc. as Agent for the benefit of The Lutheran Brotherhood Family of Funds
Account #00-003-156

Further Credit:
[Name of the Fund]
[Shareholder Account Number]
[Shareholder Registration/Name]

The Fund and its transfer agent are not responsible for the consequences of delays resulting from the banking or Federal
Reserve wire transfer system, or from incomplete wiring instructions.

AUTOMATIC INVESTMENT PLANS

Please note that it takes up to 10 business days from the time you invest for the transfer agent to validate any electronic
transfer. This will cause some delay in your ability to redeem or transfer from your account.

For further information regarding any of the following automatic investment plans, contact your Thrivent Investment Mgt.
representative or our Interaction Center at (800) THRIVENT (847-4836).

Automatic Bank Withdrawal Plan

Investors who wish to make regular additional investments in an existing Fund account may do so through the Funds' bank
draft plan. Under this plan, the Funds will draft an investor's bank checking or savings account in the amount specified on
specified dates. The proceeds will be invested in shares of the specified Fund at the applicable offering price determined on the
date of the draft. To use this plan you must authorize the plan on your application form, or subsequently in writing, and submit
additional documents.

The Automatic Exchange Plan

The automatic exchange plan allows investors to make regular automatic investments in an existing Fund account by
redemption of the same class of shares from their LB Money Market Fund account. The automatic exchange plan allows investors to
select the transaction date. To start, stop or change the plan, you must notify the Funds at least 24 hours prior to the
transaction date.

RETIREMENT PLANS

PURCHASE POLICIES

Your payment must be in U.S. dollars drawn on a U.S. bank. We do not accept cash. If you purchase shares by check,
electronic funds transfer (other than bank wire), or automatic investment plan and you elect to redeem those shares soon after
their purchase, we may postpone paying the redemption proceeds until your payment has cleared or up to 10 days from the date of
purchase.

We reserve the right to suspend the offering of shares for a period of time and the right to reject any specific purchase of
shares.

CONFIRMATION

REDEEMING SHARES

You may redeem shares in any of the following ways:

* By mail
* By phone
* By the Internet
* By wire transfer
* Through the Systematic Withdrawal Plan

Redemptions by Mail

Step 1: Prepare a written request including the following information:

* Name(s) of the account owner(s);
* Your account number;
* The name of the Fund(s) whose shares are being redeemed; and
* Dollar or share amount you wish to redeem.

You must have a Medallion Signature Guarantee if you want to do any of the following:

Step 2: Mail your redemption request.

Please note, an additional fee may be assessed for a redemption delivered by overnight mail or Saturday delivery.

The Funds will mail payment proceeds within seven days following receipt of all required documents. However, mailing may
be delayed if we are waiting for your means of purchase to clear.

Redemptions by Telephone

The following conditions apply:

* Telephone redemption checks will be issued to the same payee(s) as the account registration and sent only to the
address of record.
* There has been no change of address in the preceding 30 days.
* The request is for $100,000 or less. However, requests to redeem more than $100,000 will be accepted if the account
contains pre-established wire instructions.
* Shares to be redeemed cannot be in certificate form.

The Funds will mail payment proceeds within seven days following receipt of all required documents.

Redemptions by the Internet

Redemptions by Wire Transfer

When redeeming shares by wire transfer, the following conditions apply:

* A fee of up to $30 may be assessed for redemptions by wire.
* This privilege may not be available on all retirement plan accounts.

Systematic Withdrawal Plan

* You need a minimum of $50,000 in your account ($25,000 for Lutheran congregations) to start the plan.
* You can select the date(s) on which the money is withdrawn.
* To start the plan or change the payee(s), you must notify us in writing and you must have all account owner(s) sign the
appropriate form, which is available from our Interaction Center.
* Money can be sent by check or electronic funds transfer.
* To stop or change your plan, you must notify Thrivent Investment Mgt. prior to the next withdrawal.

EXCHANGING SHARES BETWEEN FUNDS

You may exchange some or all of your shares of one Fund for shares of the same class of any of the other Funds. In
addition, you may exchange Institutional Class shares of your Funds for Institutional Class shares of The AAL Mutual Funds.

If you are eligible to purchase Institutional Class shares, you may exchange some or all of your Class A shares for
Institutional Class shares of any of the Funds or Institutional Class shares of The AAL Mutual Funds.

An excessive number of exchanges may be disadvantageous to the Funds. Therefore, the Funds reserve the right to
terminate the exchange privilege of any shareholder who makes more than 12 exchanges in a year. Further, the funds reserve the
right to modify or terminate the exchange privilege at any time with respect to any Fund, if the Funds' Trustees determine that
continuing the privilege may be detrimental to shareholders. If the exchange policies are materially modified or terminated, we
will give you at least 60 days prior notice.

You may obtain an exchange form or receive more information about making exchanges between Funds by contacting your
Thrivent Investment Mgt. registered representative.

You may exchange funds in any of the following ways:
* By mail
* By telephone
* By the Internet

Exchanges by Mail

Exchanges by Telephone

Exchanges by the Internet

ACCOUNTS WITH LOW BALANCES

Due to the high cost of maintaing accounts with low balances, the Funds may redeem shares in any account if the value of
Institutional Class shares in the account falls below the required minimum amount for your type of account.

Before shares are redeemed to close an account, you will be notified in writing and allowed 60 days to purchase additional
shares. Shares will not be redeemed if the account's value drops below the minimum only because of market fluctuations.

DISTRIBUTIONS

DIVIDENDS

Dividends are declared and paid as follows:

- declared daily and paid monthly LB High Yield Fund
LB Income Fund
LB Municipal Bond Fund
LB Limited Maturity Bond Fund
LB Money Market Fund

- declared and paid annually LB Opportunity Growth Fund
LB Mid Cap Growth Fund
LB World Growth Fund
LB Growth Fund
LB Fund
LB Value Fund

Income dividends are derived from investment income, including dividends, interest, and certain foreign currency gains
received by a Fund.

CAPITAL GAINS

Capital gains distributions, if any, usually will be declared in December for the prior fiscal year ending October 31.

DISTRIBUTION OPTIONS

When completing your application, you must select one of the following options for dividends and capital gains
distributions:

* All Cash. Distributions will be paid in cash. Your request to receive all or a portion of your distributions in cash must
be received at least 10 days before the record date of the dividend or other distribution.

* Part Cash and Part Reinvestment. You may request to have part of your distributions in cash and part of your distributions
reinvested in additional shares of the same class of that Fund.

Distributions paid in shares will be credited to your account at the next determined NAV per share.

TAXES

In general, any dividends and short-term capital gains distributions you receive from a Fund are taxable as ordinary income.
Distributions of other net capital gains by a Fund are generally taxable as capital gains - in most cases, at different rates from
those that apply to ordinary income. We expect that distributions from LB Opportunity Growth Fund, LB Mid Cap Growth Fund, LB
World Growth Fund, LB Growth Fund, LB Fund, and LB Value Fund will consist primarily of capital gains and that distributions from
LB High Yield Fund, LB Income Fund, LB Limited Maturity Bond Fund and LB Money Market Fund will consist primarily of ordinary
income.

Every year, the Funds will send you information detailing the amount of ordinary income and capital gains distributed to you
for the previous year. The sale of shares in your account may produce a gain or loss, and is a taxable event. For tax purposes,
an exchange between Funds is the same as a sale. You will not be required to pay federal income tax on exchanges of Class A or
Class B shares of a Fund for Institutional Class Shares of the same Fund.

Your investment in the Funds could have additional tax consequences. Please consult your tax professional for assistance.

By law, the Funds must withhold 30% of your distributions and proceeds if you have not provided complete, correct taxpayer
information.

LB MUNICIPAL BOND FUND

LB WORLD GROWTH FUND

OTHER SECURITIES AND INVESTMENT PRACTICES

FOREIGN SECURITIES. Each of the Funds may invest in foreign securities. Foreign securities are generally more volatile than
their domestic counterparts, in part because of higher political and economic risks, lack of reliable information and fluctuations
in currency exchange rates. These risks are usually higher in less developed countries. Each of these Funds except the LB Money
Market Fund may use foreign currencies and related instruments to hedge its foreign investments.

INTERNATIONAL EXPOSURE. Each of the Funds except LB Municipal Bond Fund and LB Money Market Fund may have some
international exposure (including emerging markets) in their investments. Many U.S. companies in which these Funds may invest
generate significant revenues and earnings from abroad. As a result, these companies and the prices of their securities may be
affected by weaknesses in global and regional economies and the relative value of foreign currencies to the U.S. dollar. These
factors, taken as a whole, could adversely affect the price of Fund shares.

While hedging can guard against potential risks, it adds to the fund's expenses and can eliminate some opportunities for
gains. There is also a risk that a derivative intended as a hedge may not perform as expected.

The main risk with derivatives is that some types can amplify a gain or loss, potentially earning or losing substantially
more money than the actual cost of the derivative.

HIGH-YIELD BONDS. Each of the Funds except LB Municipal Bond Fund and LB Money Market Fund may invest in high-yield bonds.
High-yield bonds are debt securities rated below BBB by S&P or Baa by Moody's. To the extent that a Fund invests in high-yield
bonds, it takes on certain risks:

o The risk of a bond's issuer defaulting on principal or interest payments is greater than on higher quality bonds.
o Issuers of high-yield bonds are less secure financially and are more likely to be hurt by interest rate increases and
declines in the health of the issuer or the economy.

SHORT-TERM TRADING. The investment strategy for each Fund except LB Money Market Fund at times may include short-term
trading. While a Fund ordinarily does not trade securities for short-term profits, it will sell any security at any time it
believes best, which may result in short-term trading. Short-term trading can increase a Fund's transaction costs and may
increase your tax liability.

DEFENSIVE INVESTING. In response to market, economic, political or other conditions, each Fund (except LB Money Market Fund)
may invest without limitation in cash, preferred stocks, or investment-grade debt securities for temporary defensive purposes. If
the Fund does this, different factors could affect the Fund's performance and it may not achieve its investment objective.

FINANCIAL HIGHLIGHTS

The financial highlights tables for each of the Funds are intended to help you understand the Funds' financial performance
for the past five years or, if shorter, the period of the Funds' operations. The total returns in the table represent the rate
that an investor would have earned or lost on an investment in a Fund (assuming reinvestment of all dividends and distributions).
This information has been audited by PricewaterhouseCoopers LLP, independent accountantss, whose report, along with the Funds'
financial statements, are included in the Annual Report to Shareholders for the fiscal year ended October 31, 2002, which is
available upon request. Effective October 1, 1999, Institutional Class shares became subject to a shareholder servicing fee of
0.15% on the average daily net assets of the Fund. Effective March 1, 2003, Thrivent Investment Mgt. has agreed to voluntarily
waive the shareholder servicing fee. The temporary waiver may be discontinued at any time.

LB OPPORTUNITY GROWTH FUND

INSTITUTIONAL CLASS SHARES
------------------------------------------------------------------------
Year Ended Year Ended Year ended Year Ended Year Ended
10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
---------- ---------- ---------- ---------- -----------
Net Asset Value, Beginning of Period..... $ $14.45 $11.21 $ 9.35 $12.97
------ ------ ------ ------ ------
Investment Operations:
Net Investment Income.(Loss)........... (0.12) (0.03) (0.14) (0.03)
Net Realized and Unrealized Gain
(Loss) on Investment................. (4.53) 3.27 2.00 (3.15)
------ ------ ------ ------ ------
Total from Investment Operations......... (4.65) 3.24 1.86 (3.18)
------ ------ ------ ------ ------
Less Distributions from:
Net Realized Gain on Investments....... (0.92) -- -- (0.44)
------ ------ ------ ------ ------
Net Asset Value, End of Period........... $ $ 8.88 $14.45 $11.21 $9.35
====== ====== ====== ====== ------
Total Investment Return at Net Asset
Value(%) (33.87%) 29.08% 19.89% (25.02)%
Net Assets, End of Period (in millions).. $ $4.5 $12.1 $8.8 $5.4
Ratio of Expenses to Average Net
Assets (%) 0.88% 0.80% 1.25% 1.15%
Ratio of Net Investment Income to
Average Net Assets (%)................. (0.22%) (0.32%) (0.94%) (0.26%)
Portfolio Turnover Rate (%)............... 126% 143% 49% 155%

LB MID CAP GROWTH FUND

INSTITUTIONAL CLASS SHARES
---------------------------------------------------- -------------
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
---------- ---------- ---------- ---------- -----------
Net Asset Value, Beginning of Period ......... $ $18.49 $12.99 $ 9.21 $10.33
------ ------ ------ ------ ------
Investment Operations:
Net Investment Income......................... 0.04 0.03 (0.14) 0.39
Net Realized and Unrealized Gain
(Loss) on Investments ...................... (5.52) 5.94 3.92 (0.90)
------ ------ ------ ------ ------
Total from Investment Operations ............. (5.48) 5.97 3.78 (0.51)
------ ------ ------ ------ ------
Less Distributions from:
Net Investment Income.................... -- -- -- (0.37)
Net Realized Gains on Investments........ (1.35) (0.47) -- (0.24)
------ ------ ------ ------ ------
Total Distributions........................... (1.35) (0.47) -- (0.61)
------ ------ ------ ------ ------
Net Asset Value, End of Period ............... $ $11.66 $18.49 $12.99 $ 9.21
====== ====== ====== ====== ======
Total Investment Return at
Net Asset Value % ......................... (31.62%) 47.15% 41.04% (5.06%
Net Assets, End of Period ($ in millions) .... $ $7.7 $4.4 $1.2 $0.7
Ratio of Expenses to Average
Net Assets (1)............................... 0.64% 0.93% 1.70% 1.70%
Ratio of Net Investment Income to
Average Net Assets (1)....................... 0.04% (0.23%) (1.09%) 2.18%
Portfolio Turnover Rate ...................... 137% 118% 145% 436%
-----------------
(1) Effective May 30, 1997, through October 31, 1999, the investment adviser voluntarily agreed to temporarily waive a
portion of its advisory fees, and if necessary, to bear other expenses associated with operating LB Mid Cap Growth
Fund in order to limit the Total Annual Fund Operating Expenses to 1.95% for Class A shares, and effective October
31, 1997, the investment adviser voluntarily agreed to waive the same percentage of advisory and such other expenses
for Institutional class shares. Effective January 1, 2001, the investment adviser voluntarily agreed to waive 35 basis
points (0.35%) from the advisory fees payable by LB Mid Cap Growth Fund. Had the investment adviser not undertaken
such actions, for Institutional Class shares, the ratio of expenses to average net assets would have been ____%, 0.92%,
1.82% and 1.97% and the ratio of net investment income to average net assets would have been ____%, (0.24%), (1.21%)
and 1.91%, respectively, for the years ended October 31, 2002, 2001, 1999 and 1998.

LB WORLD GROWTH FUND

INSTITUTIONAL CLASS SHARES
---------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
-------- -------- -------- -------- --------
Net Asset Value, Beginning of Period............... $ $12.50 $12.59 $10.61 $10.09
------ ------ ------ ------ ------
Investment Operations:
Net Investment Income......................... 0.06 0.02 0.03 0.04
Net Realized and Unrealized Gain (Loss)
on Investments............................. (3.20) 0.28 2.05 0.66
------ ------ ------ ------ ------
Total from Investment Operations................... (3.14) 0.30 2.08 0.70
------ ------ ------ ------ ------
Less Distributions from:
Net Investment Income......................... -- -- (0.10) (0.04)
Net Realized Gains on Investments............. (1.00) (0.39) -- (0.14)
------ ------ ------ ------ ------
Total Distributions................................ (1.00) (0.39) (0.10) (0.18)
------ ------ ------ ------ ------
Net Asset Value, End of Period..................... $ $ 8.36 $12.50 $12.59 $10.61
====== ====== ====== ====== ======
Total Investment Return at Net Asset Value (%) (27.16%) 2.43% 19.42% 7.20%
Net Assets, End of Period (in millions)............ $ $15.1 $15.8 $14.1 $10.4
Ratio of Expenses to Average Net Assets (1)........... 1.12% 1.22% 1.63% 1.61%
Ratio of Net Investment Income to Average
Net Assets (1) ..................................... 0.43% 0.07% 0.17% 0.31%
Portfolio Turnover Rate............................... 30% 40% 18% 20%
------------------
(1) Through December 31, 2002, the investment adviser voluntarily agreed to limit its advisory fee to a
flat rate of 0.75% of average daily net assets of the LB World Growth Fund. From January 1, 2001,
through December 31, 2002, the investment adviser also voluntarily agreed to waive an additional 15
basis points (0.15%) from the advisory fees payable by LB World Growth Fund. Without such waivers,
the ratio of expenses to average net assets would have been ____% and 1.32% and the ratio of net
investment income to average net assets would have been ____% and 0.23% for the years ended October
31, 2001 and October 31, 2002.

LB GROWTH FUND

INSTITUTIONAL CLASS SHARES

For the period from
October 29, 1999
Year Ended Year Ended (effective date) to
10/31/02 10/31/01 October 31, 2000
---------- ----------- ------------------
Net Asset Value,
Beginning of Period..... $ $18.75 $16.50
------ ------ ------
Investment Operations:
Net Investment Income...... 0.06 0.04
Net Realized and Unrealized
Gain (Loss) on Investments(1) (7.26) 2.21
------ ------ ------
Total from Investment
Operations (7.20) 2.25
------ ------ ------
Net Asset Value End of
Period.................. $ $11.55 $18.75
====== ====== ======
Total Investment Return a
Net Asset Value(%)... (38.40%) 13.64%
Net Assets, End of Period
(in millions)........... $ $3.2 $4.9
Ratio of Expenses to
Average Net Assets (%)(2) 0.46% 0.56%
Ratio of Net Investment
Income to Average Net
Assets (%)(2)........... 0.47% 0.19%
Portfolio Turnover Rate (%).... 14% 17%
-----------------------
(1) The amount shown is a balancing figure and may not accord with the change in aggregate
gains and losses of portfolio securities due to the timing of sales and redemptions of
fund shares.
(2) Effective October 29, 1999 through December 31, 2000, the investment adviser voluntarily
greed to temporarily waive a portion of its advisory fees, and, if necessary, to bear certain
expenses associated with operating LB Growth Fund in order to limit the Total Annual Fund
Operating Expenses for Class A shares to 1.30% of the average daily net assets and to waive
the same percentage of advisory and such other expenses for Institutional Class shares.
From January 1, 2001, through December 31, 2002, the investment adviser voluntarily agreed
to waive 65 basis points (0.65%) from the advisory fees and other expenses payable by LB
Growth Fund. Had the investment adviser not undertaken such actions, the ratio of expenses
to average net assets would have been ____%, 1.10% and 1.19% and the ratio of net investment
income to average net assets would have been ____%, (0.17%) and (0.44%), respectively, for
the years ended October 31, 2002 and 2001 and for the period from October 29, 1999 to October 31, 2000.

LB FUND

INSTITUTIONAL CLASS SHARES
--------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
-------- -------- -------- -------- --------
Net Asset Value,
Beginning of Period..... $ $28.33 $ 31.24 $ 27.95 $ 26.98
------ ------ ------- ------- -------
Investment Operations:
Net Investment Income...... 0.11 0.13 0.14 0.20
Net Realized and Unrealized
Gain (Loss) on Investments. (8.02) 1.52 6.43 3.57
------ ------ ------- ------- -------
Total from Investment
Operations (7.91) 1.65 6.57 3.77
------ ------ ------- ------- -------
Less Distributions from:
Net Investment Income... (0.03) (0.12) (0.15) (0.18)
Net Realized Gain on
Investments............. (1.01) (4.44) (3.13) (2.62)
------ ------ ------- ------- -------
Total Distributions........ (1.04) (4.56) (3.28) (2.80)
------ ------ ------- ------- -------
Net Asset Value End of
Period.................. $ $19.38 $ 28.33 $ 31.24 $ 27.95
====== ======= ======= ======= =======
Total Investment Return a
Net Asset Value(%)... (28.83%) 5.36% 25.89% 15.41%
Net Assets, End of Period
(in millions)........... $ $39.8 $51.9 $43.2 $ 28.7
Ratio of Expenses to
Average Net Assets (%)(1) 0.62% 0.54% 0.60% 0.61%
Ratio of Net Investment
Income to Average Net
Assets (%) (1).......... 0.50% 0.44% 0.49% 0.72%
Portfolio Turnover Rate (%).... 21% 47% 57% 57%
-----------------------
(1) Effective January 1, 1997 through December 31, 2000, the investment adviser voluntarily agreed
to waive five basis points (0.05%) from the advisory fees payable by LB Fund. Had the investment
adviser not undertaken such action, the ratio of expenses to average net assets would have been
____%, 0.63%, 0.59%, 0.65% and 0.66% and the ratio of net investment income to average net assets
would have been ____%, 0.49%, 0.39%, 0.44% and 0.67%, respectively, for the years ended October 31,
2002, 2001, 2000, 1999 and 1998.

LB VALUE FUND

INSTITUTIONAL CLASS SHARES

For the period from
October 29, 1999
Year Ended Year Ended (effective date) to
10/31/02 10/31/01 October 31, 2000
---------- ---------- ------------------
Net Asset Value,
Beginning of Period..... $ $15.88 $14.50
------ ------ ------
Investment Operations:
Net Investment Income...... 0.16 0.14
Net Realized and Unrealized
Gain (Loss) on Investments. (2.88) 1.24
------ ------ ------
Total from Investment
Operations (2.72) 1.38
------ ------ ------
Less Distributions from:
Net Investment Income... (0.10) --
------ ------ ------
Net Asset Value End of
Period.................. $ $13.06 $15.88
====== ====== ======
Total Investment Return a
Net Asset Value(%)... (17.19%) 9.45%
Net Assets, End of Period
(in millions)........... $ $3.4 $3.8
Ratio of Expenses to
Average Net Assets (%)(1) 0.49% 0.65%
Ratio of Net Investment
Income to Average Net
Assets (%)(1)........... 1.18% 0.89%
Portfolio Turnover Rate (%).... 35% 26%
-----------------------
(1) Effective October 29, 1999 through December 31, 2000, the investment adviser voluntarily
agreed to temporarily waive a portion of its advisory fees, and, if necessary, to bear certain
expenses associated with operating LB Value Fund in order to limit the Total Annual Fund
Operating Expenses for Class A shares to 1.30% of the average daily net assets and to
waive the same percentage of advisory and such other expenses for Institutional Class
shares. From January 1, 2001, through December 31, 2002, the investment adviser voluntarily
agreed to waive 65 basis points (0.65%) from the advisory fees and other expenses payable by
LB Value Fund. Had the investment adviser not undertaken such actions, the ratio of expenses
to average net assets would have been ____%, 1.11% and 1.49% and the ratio of net investment
income to average net assets would have been ____%, 0.56% and 0.05%, respectively, for the
year ended October 31, 2002, 2001 and for the period from October 29, 1999 to October 31, 2000.

LB HIGH YIELD FUND

INSTITUTIONAL CLASS SHARES
--------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
-------- -------- -------- -------- --------
Net Asset Value,
Beginning of Period...... $ $ 6.73 $ 7.87 $ 8.09 $ 9.58
------ ------ ------ ------ ------
Investment Operations:
Net Investment Income..... 0.72 0.87 0.85 0.88
Net Realized and
Unrealized Gain (Loss)
on Investments........... (1.45) (1.19) (0.21) (1.31)
------ ------ ------ ------ ------
Total from Investment
Operations............... (0.73) (0.32) 0.64 (0.43)
------ ------ ------ ------ ------
Less Distributions from:
Net Investment Income.... (0.78) (0.82) (0.86) (0.88)
Net Realized Gain
on Investments........... -- -- -- (0.18)
------ ------ ------ ------ ------
Total Distributions....... (0.78) (0.82) (0.86) (1.06)
------ ------ ------ ------ ------
Net Asset Value End
of Period................ $ $ 5.22 $ 6.73 $ 7.87 $ 8.09
====== ====== ====== ====== ======
Total Investment
Return at Net
Asset Value(%)........... (11.34%) (4.81%) 7.96% (5.33%
Net Assets, End of
Period (in millions)..... $ $12.5 $23.3 $53.0 $52.3
Ratio of Expenses to
Average Net Assets (%)(1) 0.67% 0.59% 0.61% 0.59%
Ratio of Net Investment
Income to Average
Net Assets (%)(1)........ 11.95% 11.16% 10.21% 9.57%
Portfolio Turnover Rate... 65% 60% 55% 73%
-------------------
(1) Effective January 1, 1997 through December 31, 2000, the investment adviser voluntarily agreed to waive
five basis points (0.05%) from the advisory fees payable by LB High Yield Fund. Had the investment adviser
not undertaken such action, the ratio of expenses to average net assets would have been ____%, 0.68%, 0.64%,
0.66% and 0.64% and the ratio of net investment income to average net assets would have been ____%, 11.94%,
11.11%, 10.16% and 9.52%, respectively, for the years ended October 31, 2001, 2000, 1999 and 1998.

LB INCOME FUND

------ ------ ------ ------ ------
Net Asset Value End of
Period.................... $ $ 8.71 $ 8.19 $ 8.22 $ 8.77
====== ====== ====== ====== ======
Total Investment Return
at Net Asset
Value(%) .... 13.43% 6.33% (0.44%) 8.69%
Net Assets, End of
Period (in millions)..... $ $39.1 $38.3 $31.8 $26.6
Ratio of Expenses to
Average Net Assets (%)(1). 0.56% 0.55% 0.57% 0.55%
Ratio of Net Investment
Income to Average
Net Assets (%)(1)........ 5.94% 6.69% 6.18% 6.41%

Portfolio Turnover Rate (%).. 175% 111% 72% 98%
------------------------
(1) Effective January 1, 1997, through December 31, 2002, the investment adviser voluntarily agreed to waive
five basis points (0.05%) from the advisory fees payable by LB Income Fund. Had the investment adviser not
undertaken such action, the ratio of expenses to average net assets would have been ____%, 0.61%, 0.60%,
0.62% and 0.60% and the ratio of net investment income to average net assets would have been ____%, 5.89%,
6.64%, 6.13% and 6.36%, respectively, for the years ended October 31, 2002, 2001, 2000, 1999 and 1998.

LB MUNICIPAL BOND FUND

INSTITUTIONAL CLASS SHARES
---------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
-------- -------- -------- -------- --------
Net Asset Value,
Beginning of Period......... $ $ 8.66 $ 8.43 $ 9.11 $ 8.85
------ ------ ------ ------ ------
Investment Operations:
Net Investment Income.......... 0.44 0.45 0.46 0.46
Net Realized and Unrealized Gain
(Loss) on Investments....... 0.49 0.24 (0.68) 0.26
------ ------ ------ ------ ------
Total from Investment Operations. 0.93 0.69 (0.22) 0.72
------ ------ ------ ------ ------
Less Distributions from:
Net Investment Income....... (0.46) (0.46) (0.46) (0.46)
------ ------ ------ ------ ------
Net Asset Value End of Period.. $ $ 9.13 $ 8.66 $ 8.43 $ 9.11
====== ====== ====== ====== ======
Total Investment Return at
Net Asset Value(%) 10.95% 8.42% (2.49%) 8.39%
Net Assets, End of
Period (in millions)........ $ $2.6 $3.2 $4.3 $4.0
Ratio of Expenses to Average
Net Assets (%)(1)........... 0.56% 0.52% 0.45% 0.44%
Ratio of Net Investment Income
to Average Net Assets (%)(1). 5.05% 5.35% 5.13% 5.13%
Portfolio Turnover Rate (%).... 5% 12% 20% 14%
------------------------
(1) Effective January 1, 1997 through December 31, 2000, the investment adviser voluntarily agreed to waive five
basis points (0.05%) from the advisory fees payable by LB Municipal Bond Fund. Had the investment adviser not
undertaken such action, the ratio of expenses to average net assets would have been ____%, 0.57%, 0.57%, 0.50%
and 0.49% and the ratio of net investment income to average net assets would have been ____%, 5.04%, 5.30%,
5.08% and 5.08%, respectively, for the years ended October 31, 2002, 2001, 2000, 1999 and 1998.

LB LIMITED MATURITY BOND FUND

INSTITUTIONAL CLASS SHARES

For the period from
October 29, 1999
Year Ended Year Ended (effective date) to
10/31/02 10/31/01 October 31, 2000
---------- ----------- ------------------
Net Asset Value,
Beginning of Period..... $ $12.41 $12.50
------ ------ ------
Investment Operations:
Net Investment Income...... 0.69 0.74
Net Realized and Unrealized
Gain (Loss) on Investments. 0.78 (0.09)
------ ------ ------
Total from Investment
Operations 1.47 0.65
------ ------ ------
Less Distributions from:
Net Investment Income... (0.69) (0.74)
Net Realized Gain on
Investments............. (0.05) --
------ ------ ------
Total Distributions........ (0.74) (0.74)
------ ------ ------
Net Asset Value End of
Period.................. $ $13.14 $12.41
====== ====== ======
Total Investment Return a
Net Asset Value(%)... 12.22% 5.43%
Net Assets, End of Period
(in millions)........... $ $11.5 $10.6
Ratio of Expenses to
Average Net Assets (%)(1) 0.51% 0.73%
Ratio of Net Investment
Income to Average Net
Assets (%)(1)........... 5.32% 6.06%
Portfolio Turnover Rate (%).... 290% 229%
-----------------------
(1) Effective October 29, 1999 through December 31, 2000, the investment adviser voluntarily
agreed to temporarily waive a portion of its advisory fees, and, if necessary, to bear
certain expenses associated with operating LB Limited Maturity Bond Fund in order to limit
the Total Annual Fund Operating Expenses for Class A shares to 0.95% of the average daily net
assets and to waive the same percentage of advisory and such other expenses for Institutional
Class shares. Effective January 1, 2001, through December 31, 2002, the investment adviser
voluntarily agreed to waive 30 basis points (0.30%) from the advisory fees payable by LB
Limited Maturity Bond Fund. Had the investment adviser not undertaken such actions, the ratio
of expenses to average net assets would have been ____%, 0.78% and 0.88% and the ratio of net
investment income to average net assets would have been ____%, 5.05% and 5.91%, respectively,
for the years ended October 31, 2002, 2001 and for the period from October 29, 1999 to October
31, 2000.

LB MONEY MARKET FUND

INSTITUTIONAL CLASS SHARES
--------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
-------- -------- -------- -------- --------
Net asset Value,
Beginning of Period... $ $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------
Investment Operations:
Net Investment Income.... 0.05 0.06 0.04 0.05
Less Distributions from:
Net Investment Income.... (0.05) (0.06) (0.04) (0.05)
------ ------ ------ ------ ------
Net Asset Value,
End of Period. $ $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total Investment Return
at Net Asset Value (%) 4.53% 5.86% 4.53% 5.08%
Net Assets, End of
Period (in millions).. $ $37.6 $42.1 $51.1 $47.3
Ratio of Expenses to
Average Net Assets (%)(1). 0.56% 0.55% 0.70% 0.70%
Ratio of Net Investment
Income to Average Net
Assets (%)(1). 4.41% 5.71% 4.44% 4.97%
----------------------
(1) Effective April 1, 1996, through December 31, 2002, the investment adviser voluntarily limited LB Money Market
Fund's expense ratio to 0.95% of average daily net assets, and effective October 31, 1997, the investment
adviser voluntarily agreed to waive the same percentage amount for Institutional Class shares. Had the investment
adviser not undertaken such action to limit expenses, the ratio of expenses to average net assets would have
been ____%, 0.60%, 0.60%, 0.75% and 0.79%, and the ratio of net investment income to average net assets would
have been ____%, 4.37%, 5.66%, 4.39% and 4.88%, respectively, for the years ended October 31, 2002, 2001, 2000,
1999 and 1998.

------------------------------------------------------------------------

[Back cover page]

THE LUTHERAN BROTHERHOOD FAMILY OF FUNDS

By Telephone:
1-800-847-4836
press 1 to speak with a customer service representative
or
press 2 to use the Automated Service Line

By Internet:
www.thrivent.com

By Mail (New Applications):
The Lutheran Brotherhood Family of Funds
P.O. Box 310
Minneapolis, Minnesota 55440-0310

By Mail (Additional Investments):
The Lutheran Brotherhood Family of Funds
P.O. Box 59025
Minneapolis, Minnesota 55459-0025

By Mail (Redmeptions, Exchanges or Other Requests):
The Lutheran Brotherhood Family of Funds
P.O. Box 9491
Minneapolis, Minnesota 55440-9491

By Express Mail:
The Lutheran Brotherhood Family of Funds
625 Fourth Avenue South
Minneapolis, Minnesota 55415

The Statement of Additional Information, which is incorporated by reference into this Prospectus, contains additional
information about the Funds. Additional information about the Funds' investments is available in the Funds' annual and
semi-annual reports to shareholders. In the Funds' annual report, you will find a discussion of the market conditions and
investment strategies that significantly affected the performance of each of the Funds during their last fiscal year. You may
request a free copy of the Statement of Additional Information, the annual report, or the semi-annual report, or you may make
additional requests or inquiries by calling 1-800-847-4836. You also may review and copy information about the Funds (including
the Statement of Additional Information) at the Public Reference Room of the Securities and Exchange Commission in Washington,
DC. You may get more information about the Public Reference Room by calling 1-800-SEC-0330. You also may get information about
the Funds on the EDGAR data base at the SEC Web site (www.sec.gov), and copies of the information may be obtained, upon payment of
a duplicating fee, by writing the Public Reference Section of the SEC, Washington, DC 20549-6009, or by sending an email to:
publicinfo@sec.gov.

1940 Act File No. 811-1467

SERIES OF
THE LUTHERAN BROTHERHOOD FAMILY OF FUNDS
STATEMENT OF ADDITIONAL INFORMATION

March 1, 2003

The Lutheran Brotherhood Family of Funds offers 11 Funds, each of which offer three classes of shares: Class A, Class B and
Institutional Class shares. Class A and B shares are offered through a combined prospectus and Institutional Class shares are
offered through a separate prospectus. Each such prospectus is referred to hereinafter as a "prospectus". This Statement of
Additional Information should be read in conjunction with the prospectus dated March 1, 2003 for the applicable class of the
following series of The Lutheran Brotherhood Family of Funds (the "Trust"):

Lutheran Brotherhood Opportunity Growth Fund ("LB Opportunity Growth Fund")
Lutheran Brotherhood Mid Cap Growth Fund ("LB Mid Cap Growth Fund")
Lutheran Brotherhood World Growth Fund ("LB World Growth Fund")
Lutheran Brotherhood Growth Fund ("LB Growth Fund")
Lutheran Brotherhood Fund ("LB Fund")
Lutheran Brotherhood Value Fund ("LB Value Fund")
Lutheran Brotherhood High Yield Fund ("LB High Yield Fund")
Lutheran Brotherhood Income Fund ("LB Income Fund")
Lutheran Brotherhood Municipal Bond Fund ("LB Municipal Bond Fund")
Lutheran Brotherhood Limited Maturity Bond Fund ("LB Limited Maturity Bond Fund")
Lutheran Brotherhood Money Market Fund ("LB Money Market Fund")

This Statement of Additional Information is not a prospectus itself. The Report of Independent Accountants and financial
statements in the Annual Report to Shareholders for the fiscal year ended October 31, 2002 of the Funds are a separate report
furnished with this Statement of Additional Information and are incorporated herein by reference. To receive a copy of either the
prospectus or the Annual Report, write to Thrivent Investment Management Inc. ("Thrivent Investment Mgt."), 625 Fourth Avenue
South, Minneapolis, Minnesota 55415 or call toll-free 1-800-328-4552 for the Automated Service Line or 1-800-847-4836 to speak
with a customer service associate.

TABLE OF CONTENTS

Page

History of The Lutheran Brotherhood Family of Funds......................
Investment Policies and Restrictions.....................................
Fund Management..........................................................
Control Persons and Principal Holders of Securities......................
Investment Advisory Services.............................................
Other Services...........................................................
Distribution and Shareholder Services....................................
Brokerage Allocation and Other Practices.................................
Purchasing Shares........................................................
Sales Charges............................................................
Net Asset Value of Shares................................................
Redeeming Shares.........................................................
Tax Status...............................................................
General Information......................................................
Calculation of Performance Data..........................................
Description of Debt Ratings..............................................
Report of Independent Public Accountants and Financial Statements........

HISTORY OF THE LUTHERAN BROTHERHOOD FAMILY OF FUNDS

Each Fund in The Lutheran Brotherhood Family of Funds is a diversified series of The Lutheran Brotherhood Family of Funds, an
open-end management investment company. All the Funds, except LB World Growth Fund, LB Mid Cap Growth Fund, LB Growth Fund, LB
Value Fund, and LB Limited Maturity Bond Fund were organized in 1993 as series of The Lutheran Brotherhood Family of Funds, a
Delaware business trust. Each of those Funds is the successor to a fund of the same name that previously operated as a separate
corporation or trust pursuant to a reorganization that was effective as of November 1, 1993. LB World Growth Fund and LB Mid Cap
Growth Fund began operating as a series of the LB Family of Funds on September 5, 1995 and May 30, 1997, respectively. LB Growth
Fund, LB Value Fund, and LB Limited Maturity Bond Fund began operating as a series of the LB Family of Funds on October 29, 1999.
The fiscal year end of the Trust and each Fund is October 31. Prior to October 31, 1997, the shares of the Funds had no specific
class designations. As of that date, Class A, Class B and Institutional Class shares were authorized by the Board of Trustees of
the Trust ("Board of Trustees"). The Trust has reserved the right to create other classes of shares in the future.

INVESTMENT POLICIES AND RESTRICTIONS

ADDITIONAL INVESTMENT PRACTICES

In addition to those practices stated in the Prospectus, various of the Funds may purchase the following securities or may
engage in the following transactions.

OTHER SECURITIES

LB Opportunity Growth Fund, LB Mid Cap Growth Fund, LB World Growth Fund, LB Growth Fund, LB Fund, and LB Value Fund may each
invest in other types of securities, including bonds, preferred stocks, convertible bonds, convertible preferred stocks, warrants,
American Depository Receipts (ADRs), and other debt or equity securities. In addition, each of these Funds may invest in U.S.
Government securities or cash, and LB World Growth Fund may also invest in European Depository Receipts (EDRs) and the securities
of foreign investment trusts and or trusts.

LB Opportunity Growth Fund, LB Mid Cap Growth Fund, LB World Growth Fund, LB Growth Fund, LB Fund, and LB Value Fund will not
use any minimum level of credit quality. Debt obligations may be rated less than investment grade, which is defined as having a
quality rating below "Baa", as rated by Moody's Investors Service, Inc. ("Moody's"), or below "BBB", as rated by Standard & Poor's
Corporation ("S&P"). For a description of Moody's and S&P's ratings, see "Description of Debt Ratings". Securities rated below
investment grade (sometimes referred to as "high yield" or "junk bonds") are considered to be speculative and involve certain
risks, including a higher risk of default and greater sensitivity to interest rate and economic changes.

LB High Yield Fund, LB Income Fund, and LB Limited Maturity Bond Fund may also invest in common stocks, warrants to purchase
stocks, bonds or preferred stocks convertible into common stock, and other equity securities.

LB Municipal Bond Fund does not generally intend to purchase any securities which would cause 25% or more of the value of its
total assets to be invested in the securities of governmental subdivisions located in any one state, territory or possession of
the United States. The Fund may invest 25% or more of the value of its total assets in industrial development bonds. The Fund also
may invest up to 25% of its total assets in securities issued in connection with the financing of projects with similar
characteristics, such as toll road revenue bonds, housing revenue bonds or electric power project revenue bonds, or in industrial
development revenue bonds which are based, directly or indirectly, on the credit of private entities in any one industry.

BANK INSTRUMENTS

LB Money Market Fund may invest in bank instruments including, but not limited to, certificates of deposit, bankers'
acceptances and time deposits. Certificates of deposit are generally short-term (i.e., less than one year), interest-bearing
negotiable certificates issued by commercial banks or savings and loan associations against funds deposited in the issuing
institution. A banker's acceptance is a time draft drawn on a commercial bank by a borrower, usually in connection with an
international commercial transaction (to finance the import, export, transfer or storage of goods). A banker's acceptance may be
obtained from a domestic or foreign bank including a U.S. branch or agency of a foreign bank. The borrower is liable for payment
as well as the bank, which unconditionally guarantees to pay the draft at its face amount on the maturity date. Most acceptances
have maturities of six months or less and are traded in secondary markets prior to maturity. Time deposits are non-negotiable
deposits for a fixed period of time at a stated interest rate.

U.S. branches of foreign banks are offices of foreign banks and are not separately incorporated entities. They are chartered
and regulated either federally or under state law. U.S. federal branches of foreign banks are chartered and regulated by the
Comptroller of the Currency, while state branches and agencies are chartered and regulated by authorities of the respective state
or the District of Columbia. U.S. branches of foreign banks may accept deposits and thus are eligible for FDIC insurance;
however, not all such branches elect FDIC insurance. U.S. branches of foreign banks can maintain credit balances, which are funds
received by the office incidental to or arising out of the exercise of their banking powers and can exercise other commercial
functions, such as lending activities.

Investing in foreign branches of U.S. banks and U.S. branches of foreign banks may involve risks. These risks may include
future unfavorable political and economic developments, possible withholding or confiscatory taxes, seizure of foreign deposits,
currency controls, interest limitations and other governmental restrictions that might affect payment of principal or interest,
and possible difficulties pursuing or enforcing claims against banks located outside the U.S. Additionally, foreign issuers are
not generally subject to uniform accounting, auditing and financial reporting standards or other regulatory requirements and
practices comparable to U.S. issuers, and there may be less public information available about foreign banks and their branches
and agencies.

REPURCHASE AGREEMENTS

Each of the Funds may engage in repurchase agreement transactions in pursuit of its investment objective. A repurchase
agreement consists of a purchase and a simultaneous agreement to resell an investment for later delivery at an agreed upon price
and rate of interest. The Fund or its custodian will take possession of the obligations subject to a repurchase agreement. If the
original seller of a security subject to a repurchase agreement fails to repurchase the security at the agreed upon time, the Fund
could incur a loss due to a drop in the market value of the security during the time it takes the Fund to either sell the security
or take action to enforce the original seller's agreement to repurchase the security. Also, if a defaulting original seller filed
for bankruptcy or became insolvent, disposition of such security might be delayed by pending court action. The Fund may only enter
into repurchase agreements with banks and other recognized financial institutions such as broker/dealers which are found by
Thrivent Investment Mgt. (or a subadviser) to be creditworthy.

RESTRICTED SECURITIES

The Funds may buy or sell restricted securities, including securities that meet the requirements of Rule 144A under the
Securities Act of 1933 ("Rule 144A Securities"). Securities may be resold pursuant to Rule 144A under certain circumstances only
to qualified institutional buyers as defined in the rule. Rule 144A Securities may be deemed to be liquid as determined by or in
accordance with methods adopted by the Trustees. Under such methods the following factors are considered, among others: the
frequency of trades and quotes for the security, the number of dealers and potential purchasers in the market, market making
activity, and the nature of the security and marketplace trades. Investments in Rule 144A Securities could have the effect of
increasing the level of a Fund's illiquidity to the extent that qualified institutional buyers become, for a time, uninterested in
purchasing such securities. Also, a Fund may be adversely impacted by the subjective valuation of such securities in the absence
of an active market for them. Restricted securities that are not resalable under Rule 144A may be subject to risks of illiquidity
and subjective valuations to a greater degree than Rule 144A securities. None of the Funds will invest more than
15% of its net assets in illiquid securities (10% in the case of the LB Money Market Fund.)

REVERSE REPURCHASE AGREEMENTS

Each of the Funds also may enter into reverse repurchase agreements, which are similar to borrowing cash. A reverse
repurchase agreement is a transaction in which the Fund transfers possession of a portfolio instrument to another person, such as
a financial institution, broker or dealer, in return for a percentage of the instrument's market value in cash, with an agreement
that at a stipulated date in the future the Fund will repurchase the portfolio instrument by remitting the original consideration
plus interest at an agreed upon rate. The use of reverse repurchase agreements may enable the Fund to avoid selling portfolio
instruments at a time when a sale may be deemed to be disadvantageous. However, the ability to enter into reverse repurchase
agreements does not assure that the Fund will be able to avoid selling portfolio instruments at a disadvantageous time.

The Fund will engage in reverse repurchase agreements which are not in excess of 60 days to maturity and will do so to avoid
borrowing cash and not for the purpose of investment leverage or to speculate on interest rate changes. When effecting reverse
repurchase agreements, assets of the Fund in a dollar amount sufficient to make payment of the obligations to be purchased are
segregated on the Fund's records at the trade date and maintained until the transaction is settled.

WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS

Each of the Funds may purchase securities on a when-issued and delayed delivery basis. When-issued and delayed delivery
transactions arise when U.S. Government obligations and other types of securities are bought by the Fund with payment and delivery
taking place in the future. The settlement dates of these transactions, which may be a month or more after entering into the
transaction, are determined by mutual agreement of the parties. There are no fees or other expenses associated with these types of
transactions other than normal transaction costs.

To the extent a Fund engages in when-issued and delayed delivery transactions, it will do so for the purpose of acquiring
portfolio instruments consistent with its investment objective and policies and not for the purpose of investment leverage. On the
settlement date, the value of such instruments may be less than the cost thereof. When effecting when-issued and delayed delivery
transactions, a Fund will maintain liquid securities, cash, or cash equivalents of a dollar amount sufficient to make payment for
the obligations to be purchased until the transaction has been settled.

DOLLAR ROLL TRANSACTIONS

Certain of the Funds may enter into dollar roll transactions with respect to mortgage securities in which the Funds sell
mortgage securities and simultaneously agree to repurchase similar (same type, coupon and maturity) securities at a later date at
an agreed upon price. During the period between the sale and repurchase, the Funds forgo principal and interest paid on the
mortgage securities sold. The Funds are compensated by the interest earned on the cash proceeds of the initial sale and from
negotiated fees paid by brokers offered as an inducement to the Funds to "roll over" their purchase commitments. While the
dollar roll transactions may result in higher transaction costs or higher taxes for the Funds, the adviser believes that the
benefits of investing in such a program will outweigh the potential for such increased costs.

LENDING SECURITIES (ALL FUNDS EXCEPT LB MONEY MARKET FUND)

Consistent with applicable regulatory requirements, each of the Funds may from time to time lend the securities it holds to
broker-dealers, provided that such loans are made pursuant to written agreements and are continuously secured by collateral in the
form of cash, U.S. Government securities, irrevocable standby letters of credit or other liquid securities in an amount at all
times equal to at least the market value of the loaned securities plus the accrued interest and dividends. In electing to engage
in securities lending for a Fund, the Adviser will take into account the investment objective and principal strategies of the
Fund. For the period during which the securities are on loan, the lending Fund will be entitled to receive the interest and
dividends, or amounts equivalent thereto, on the loaned securities and a fee from the borrower or interest on the investment of
the cash collateral. The right to terminate the loan will be given to either party subject to appropriate notice. Upon termination
of the loan, the borrower will return to the Fund securities identical to the loaned securities.

The primary risk in lending securities is that the borrower may become insolvent on a day on which the loaned security is
rapidly increasing in value. In such event, if the borrower fails to return the loaned security, the existing collateral might be
insufficient to purchase back the full amount of the security loaned, and the borrower would be unable to furnish additional
collateral. The borrower would be liable for any shortage, but the lending Fund would be an unsecured creditor with respect to
such shortage and might not be able to recover all or any thereof. However, this risk may be minimized by a careful selection of
borrowers and securities to be lent and by monitoring collateral.

No Fund may lend any security or make any other loan if, as a result, more than one-third of its total assets would be lent
to other parties.

PUT AND CALL OPTIONS (ALL FUNDS EXCEPT LB MONEY MARKET FUND)

As described below, each of the Funds except the LB Money Market Fund may invest in options on another security, an index, a
currency, or a futures contract. If the option is described as "covered," we hold the security underlying the option or the right
to obtain it at no additional cost. If the option is not covered, we earmark the security to assure

Selling ("Writing") Covered Call Options: The Funds may from time to time sell ("write") covered call options on any portion
of their portfolios as a hedge to provide partial protection against adverse movements in prices of securities in those Funds and,
subject to the limitations described below, for the non-hedging purpose of attempting to create additional income. A call option
gives the buyer of the option, upon payment of a premium, the right to call upon the writer to deliver a specified amount of a
security on or before a fixed date at a predetermined ("strike") price. As the writer of a call option, a Fund assumes the
obligation to deliver the underlying security to the holder of the option on demand at the strike price. This obligation is held
by the Fund until either the option expires or a closing transaction is made.

If the price of a security hedged by a call option falls below or remains below the strike price of the option, a Fund will
generally not be called upon to deliver the security. A Fund will, however, retain the premium received for the option as
additional income, offsetting all or part of any decline in the value of the security. If the price of a hedged security rises
above or remains above the strike price of the option, the Fund will generally be called upon to deliver the security. In this
event, a Fund limits its potential gain by limiting the value it can receive from the security to the strike price of the option
plus the option premium.

Buying Call Options: The Funds may also from time to time purchase call options on securities in which those Funds may
invest. As the holder of a call option, a Fund has the right (but not the obligation) to purchase the underlying security or
currency at the exercise price at any time during the option period (American style) or at the expiration of the option (European
style). A Fund generally will purchase such options as a hedge to provide protection against adverse movements in the prices of
securities that the Fund intends to purchase. In purchasing a call option, a Fund would realize a gain if, during the option
period, the price of the underlying security increased by more than the amount of the premium paid. A Fund would realize a loss
equal to all or a portion of the premium paid if the price of the underlying security decreased, remained the same, or did not
increase by more than the premium paid.

Selling Put Options: The Funds may from time to time sell ("write") covered put options if the put option is part of a
combined position (see "Combined Position Option" below). As the writer of a put option, the Fund assumes the obligation to pay a
predetermined ("strike") price for the option's underlying security if the holder of the option chooses to exercise it. Until the
option expires or a closing transaction is made, the Fund must continue to be prepared to pay the strike price, regardless of
price movements in the underlying security.

If the price of the underlying security remains the same or rises above the strike price, the Fund generally will not be
called upon to purchase the security. The Fund will, however, retain the premium received for the option as additional income.
If the price of the underlying security falls below the strike price, the Fund may be called upon to purchase the security at the
strike price.

Buying Put Options: The Funds may from time to time purchase put options on any portion of their portfolios. A put option
gives the buyer of the option, upon payment of a premium, the right (but not the obligation) to deliver a specified amount of a
security to the writer of the option on or before a fixed date at a predetermined ("strike") price. A Fund generally will purchase
such options as a hedge to provide protection against adverse movements in the prices of securities in the Fund. In purchasing a
put option, a Fund would realize a gain if, during the option period, the price of the security declined by an amount in excess of
the premium paid. A Fund would realize a loss equal to all or a portion of the premium paid if the price of the security
increased, remained the same, or did not decrease by more than the premium paid.

Options on Foreign Currencies: The Funds may also write covered call options and purchase put and call options on foreign
currencies as a hedge against changes in prevailing levels of currency exchange rates.

Index Options: As part of its options transactions, the Funds may also purchase and sell call options and put options on
stock and bond indices. Options on securities indices are similar to options on a security except that, upon the exercise of an
option on a securities index, settlement is made in cash rather than in specific securities.

Combined Position Options. The Funds may purchase and sell options in combination with each other or in combination with
futures or forward contracts, to adjust the risk and return characteristics of the overall position. For example, the Funds may
engage in "straddle" and "spread" transactions. A "straddle" is established by buying both a call and a put option on the same
underlying security, each with the same exercise price and expiration date. A "spread" is a combination of two or more call
options or put options on the same security with differing exercise prices or times to maturity. The particular strategies
employed by a Fund will depend on Thrivent Investment Mgt.'s or the Subadviser's perception of anticipated market movements.

Negotiated Transactions: The Funds will generally purchase and sell options traded on a national securities or options
exchange. Where options are not readily available on such exchanges, a Fund may purchase and sell options in negotiated
transactions. A Fund effects negotiated transactions only with investment dealers and other financial institutions deemed
creditworthy by its investment adviser. Despite the investment adviser's or subadviser's best efforts to enter into negotiated
options transactions with only creditworthy parties, there is always a risk that the opposite party to the transaction may default
in its obligation to either purchase or sell the underlying security at the agreed upon time and price, resulting in a possible
loss by the Fund. This risk is described more completely in the section of this Statement of Additional Information entitled,
"Risks of Transactions in Options and Futures".

Options written or purchased by a Fund in negotiated transactions are illiquid and there is no assurance that a Fund will be
able to effect a closing purchase or closing sale transaction at a time when its investment adviser or subadviser believes it
would be advantageous to do so. In the event the Fund is unable to effect a closing transaction with the holder of a call option
written by the Fund, the Fund may not sell the security underlying the option until the call written by the Fund expires or is
exercised.

Closing Transactions: The Funds may dispose of options that they have written by entering into "closing purchase
transactions". Those Funds may dispose of options that they have purchased by entering into "closing sale transactions". A closing
transaction terminates the rights of a holder, or the obligation of a writer, of an option and does not result in the ownership of
an option.

A Fund realizes a profit from a closing purchase transaction if the premium paid to close the option is less than the premium
received by the Fund from writing the option. The Fund realizes a loss if the premium paid is more than the premium received. The
Fund may not enter into a closing purchase transaction with respect to an option it has written after it has been notified of the
exercise of such option.

A Fund realizes a profit from a closing sale transaction if the premium received to close out the option is more than the
premium paid for the option. A Fund realizes a loss if the premium received is less than the premium paid.

FINANCIAL FUTURES AND OPTIONS ON FUTURES (ALL FUNDS EXCEPT LB MONEY MARKET FUND)

Selling Futures Contracts: The Funds may sell financial futures contracts ("futures contracts") as a hedge against adverse
movements in the prices of securities in those Funds. Such contracts may involve futures on items such as U.S. Government Treasury
bonds, notes and bills; government mortgage-backed securities; corporate and municipal bond indices; and stock indices. A futures
contract sale creates an obligation for the Fund, as seller, to deliver the specific type of instrument called for in the contract
at a specified future time for a specified price. In selling a futures contract, the Fund would realize a gain on the contract if,
during the contract period, the price of the securities underlying the futures contract decreased. Such a gain would be expected
to approximately offset the decrease in value of the same or similar securities in the Fund. The Fund would realize a loss if the
price of the securities underlying the contract increased. Such a loss would be expected to approximately offset the increase in
value of the same or similar securities in the Fund.

Futures contracts have been designed by and are traded on boards of trade which have been designated "contract markets" by
the Commodity Futures Trading Commission ("CFTC"). These boards of trade, through their clearing corporations, guarantee
performance of the contracts. Although the terms of some financial futures contracts specify actual delivery or receipt of
securities, in most instances these contracts are closed out before the settlement due date without the making or taking of
delivery of the securities. Other financial futures contracts, such as futures contracts on a securities index, by their terms
call for cash settlements. The closing out of a futures contract is effected by entering into an offsetting purchase or sale
transaction.

When a Fund sells a futures contract, or a call option on a futures contract, it is required to make payments to the
commodities broker which are called "margin" by commodities exchanges and brokers.

The payment of "margin" in these transactions is different than purchasing securities "on margin". In purchasing securities
"on margin" an investor pays part of the purchase price in cash and receives an extension of credit from the broker, in the form
of a loan secured by the securities, for the unpaid balance. There are two categories of "margin" involved in these transactions:
initial margin and variation margin. Initial margin does not represent a loan between a Fund and its broker, but rather is a "good
faith deposit" by a Fund to secure its obligations under a futures contract or an option. Each day during the term of certain
futures transactions, a Fund will receive or pay "variation margin" equal to the daily change in the value of the position held by
the Fund.

Buying Futures Contracts: The Funds may purchase financial futures contracts as a hedge against adverse movements in the
prices of securities they intend to purchase. The Funds may buy and sell futures contracts for a number of reasons, including: (1)
to manage their exposure to changes in securities prices and foreign currencies as an efficient means of adjusting their overall
exposure to certain markets in an effort to enhance income; and (2) to protect the value of portfolio securities.

A futures contract purchase creates an obligation by a Fund, as buyer, to take delivery of the specific type of instrument
called for in the contract at a specified future time for a specified price. In purchasing a futures contract, a Fund would
realize a gain if, during the contract period, the price of the securities underlying the futures contract increased. Such a gain
would approximately offset the increase in cost of the same or similar securities that a Fund intends to purchase. A Fund would
realize a loss if the price of the securities underlying the contract decreased. Such a loss would approximately offset the
decrease in cost of the same or similar securities that a Fund intends to purchase.

Options on Futures Contracts: The Funds may also sell ("write") and purchase covered call and put options on futures
contracts in connection with the above strategies. An option on a futures contract gives the buyer of the option, in return for
the premium paid for the option, the right to assume a position in the underlying futures contract (a long position if the option
is a call and a short position if the option is a put). The writing of a call option on a futures contract constitutes a partial
hedge against declining prices of securities underlying the futures contract to the extent of the premium received for the option.
The purchase of a put option on a futures contract constitutes a hedge against price declines below the exercise price of the
option and net of the premium paid for the option. The purchase of a call option constitutes a hedge, net of the premium, against
an increase in cost of securities that a Fund intends to purchase.

Currency Futures Contracts and Options: The Funds may also sell and purchase currency futures contracts (or options thereon)
as a hedge against changes in prevailing levels of currency exchange rates. Such contracts may be traded on U.S. or foreign
exchanges. The Fund will not use such contracts or options for leveraging purposes.

Limitations: The Funds may engage in futures transactions, and transactions involving options on futures, only on regulated
commodity exchanges or boards of trade. A Fund will not enter into a futures contract or purchase or sell related options if
immediately thereafter the sum of the amount of initial margin deposits on the Fund's existing futures and related options
positions and premiums paid for options with respect to futures and options used for non-hedging purposes would exceed 5% of the
market value of the Fund's total assets. In addition, in instances involving the purchase of futures contracts or call options
thereon, a Fund will maintain liquid securities, cash, or cash equivalents in an amount equal to the market value of such
contracts.

HYBRID INVESTMENTS (ALL FUNDS EXCEPT LB MONEY MARKET FUND)

As part of their investment program and to maintain greater flexibility, the Funds may invest in hybrid instruments (a
potentially high-risk derivative) which have the characteristics of futures, options and securities. Such instruments may take a
variety of forms, such as debt instruments with interest or principal payments determined by reference to the value of a currency,
security index or commodity at a future point in time. The risks of such investments would reflect both the risks of investing in
futures, options, currencies and securities, including volatility and illiquidity. Under certain conditions, the redemption value
of a hybrid instrument could be zero.

In addition, because the purchase and sale of hybrid instruments could take place in an over-the-counter market or in a
private transaction between a Fund and the seller of the hybrid instrument, the creditworthiness of the counterparty to the
transaction would be a risk factor which a Fund would have to consider. Hybrid instruments also may not be subject to regulation
of the Commodities Futures Trading Commission ("CFTC"), which generally regulates the trading of commodity futures by U.S.
persons, the SEC, which regulates the offer and sale of securities by and to U.S. persons, or any other governmental regulatory
authority.

The LB World Growth Fund will limit its investment in hybrid instruments to 10% of total assets.

RISKS OF TRANSACTIONS IN OPTIONS AND FUTURES

There are certain risks involved in the use of futures contracts, options on securities and securities index options, and
options on futures contracts, as hedging devices. There is a risk that the movement in the prices of the index or instrument
underlying an option or futures contract may not correlate perfectly with the movement in the prices of the assets being hedged.
The lack of correlation could render a Fund's hedging strategy unsuccessful and could result in losses. The loss from investing in
futures transactions is potentially unlimited.

There is a risk that Thrivent Investment Mgt. or a subadviser could be incorrect in their expectations about the direction or
extent of market factors such as interest rate movements. In such a case, a Fund would have been better off without the hedge. In
addition, while the principal purpose of hedging is to limit the effects of adverse market movements, the attendant expense may
cause a Fund's return to be less than if hedging had not taken place. The overall effectiveness of hedging, therefore, depends on
the expense of hedging and Thrivent Investment Mgt.'s or a subadviser's accuracy in predicting the future changes in interest rate
levels and securities price movements.

A Fund will generally purchase and sell options traded on a national securities or options exchange. Where options are not
readily available on such exchanges, a Fund may purchase and sell options in negotiated transactions. When a Fund uses negotiated
options transactions, it will seek to enter into such transactions involving only those options and futures contracts for which
there appears to be an active secondary market.

There is, nonetheless, no assurance that a liquid secondary market, such as an exchange or board of trade, will exist for any
particular option or futures contract at any particular time. If a futures market were to become unavailable, in the event of an
adverse movement, a Fund would be required to continue to make daily cash payments of maintenance margin if it could not close a
futures position. If an options market were to become unavailable and a closing transaction could not be entered into, an option
holder would be able to realize profits or limit losses only by exercising an option, and an option writer would remain obligated
until exercise or expiration.

In addition, exchanges may establish daily price fluctuation limits for options and futures contracts, and may halt trading
if a contract's price moves upward or downward more than the limit in a given day. On volatile trading days when the price
fluctuation limit is reached or a trading halt is imposed, it may be impossible for a Fund to enter into new positions or close
out existing positions. If the secondary market for a contract is not liquid because of price fluctuation limits or otherwise, it
could prevent prompt liquidation of unfavorable positions, and potentially could require a Fund to continue to hold a position
until delivery or expiration regardless of changes in its value. As a result, a Fund's access to other assets held to cover its
options or futures positions could also be impaired.

When conducting negotiated options transactions there is a risk that the opposite party to the transaction may default in its
obligation to either purchase or sell the underlying security at the agreed upon time and price. In the event of such a default, a
Fund could lose all or part of the benefit it would otherwise have realized from the transaction, including the ability to sell
securities it holds at a price above the current market price or to purchase a security from another party at a price below the
current market price.

Finally, if a broker or clearing member of an options or futures clearing corporation were to become insolvent, a Fund could
experience delays and might not be able to trade or exercise options or futures purchased through that broker or clearing member.
In addition, a Fund could have some or all of its positions closed out without its consent. If substantial and widespread, these
insolvencies could ultimately impair the ability of the clearing corporations themselves.

FOREIGN FUTURES AND OPTIONS

Participation in foreign futures and foreign options transactions involves the execution and clearing of trades on or subject
to the rules of a foreign board of trade. Neither the National Futures Association nor any domestic exchange regulates activities
of any foreign boards of trade, including the execution, delivery and clearing of transactions, or has the power to compel
enforcement of the rules of a foreign board of trade or any applicable foreign law. This is true even if the exchange is formally
linked to a domestic market so that a position taken on the market may be liquidated by a transaction on another market. Moreover,
such laws or regulations will vary depending on the foreign country in which the foreign futures or foreign options transaction
occurs.

For these reasons, customers who trade foreign futures or foreign options contracts may not be afforded certain of the
protective measures provided by the Commodity Exchange Act, the CFTC's regulations and the rules of the National Futures
Association and any domestic exchange, including the right to use reparations proceedings before the Commission and arbitration
proceedings provided by the National Futures Association or any domestic futures exchange. In particular, funds received from
customers for foreign futures or foreign options transactions may not be provided the same protections as funds received in
respect of transactions on United States futures exchanges.

In addition, the price of any foreign futures or foreign options contract and, therefore, the potential profit and loss
thereon may be affected by any variance in the foreign exchange rate between the time an order is placed and the time it is
liquidated, offset or exercised.

SHORT SALES AGAINST THE BOX

The Funds may effect short sales, but only if such transactions are short sale transactions known as short sales "against the
box". A short sale is a transaction in which a Fund sells a security it does not own by borrowing it from a broker, and
consequently becomes obligated to replace that security. A short sale against the box is a short sale where a Fund owns the
security sold short or has an immediate and unconditional right to acquire that security without additional cash consideration
upon conversion, exercise or exchange of options with respect to securities held in its portfolio. The effect of selling a
security short against the box is to insulate that security against any future gain or loss.

FOREIGN CURRENCY EXCHANGE-RELATED SECURITIES AND FOREIGN CURRENCY TRANSACTIONS

Foreign Currency Warrants. Foreign currency warrants are warrants which entitle the holder to receive from their issuer an
amount of cash (generally, for warrants issued in the United States, in U.S. dollars). The cash amount is calculated pursuant to
a predetermined formula and based on the exchange rate between a specified foreign currency and the U.S. dollar as of the exercise
date of the warrant. Foreign currency warrants generally are exercisable upon their issuance and expire as of a specified date
and time.

Foreign currency warrants have been issued in connection with U.S. dollar-denominated debt offerings by major corporate
issuers in an attempt to reduce the foreign currency exchange risk that, from the point of view of prospective purchasers of the
securities, is inherent in the international fixed-income marketplace. Foreign currency warrants may attempt to reduce the foreign
exchange risk assumed by purchasers of a security by, for example, providing for a supplemental payment in the event that the U.S.
dollar depreciates against the value of a major foreign currency such as the Japanese Yen or German Deutschmark. The formula used
to determine the amount payable upon exercise of a foreign currency warrant may make the warrant worthless unless the applicable
foreign currency exchange rate moves in a particular direction (e.g., unless the U.S. dollar appreciates or depreciates against
the particular foreign currency to which the warrant is linked or indexed). Foreign currency warrants are severable from the debt
obligations with which they may be offered, and may be listed on exchanges.

Foreign currency warrants may be exercisable only in certain minimum amounts, and an investor wishing to exercise warrants
who possesses less than the minimum number required for exercise may be required either to sell the warrants or to purchase
additional warrants, thereby incurring additional transaction costs. In the case of any exercise of warrants, there may be a time
delay between the time a holder of warrants gives instructions to exercise and the time the exchange rate relating to exercise is
determined. During this time the exchange rate could change significantly, thereby affecting both the market and cash settlement
values of the warrants being exercised.

The expiration date of the warrants may be accelerated if the warrants should be delisted from an exchange or if their
trading should be suspended permanently. This would result in the loss of any remaining "time value" of the warrants (i.e., the
difference between the current market value and the exercise value of the warrants), and, in the case the warrants were
"out-of-the-money," in a total loss of the purchase price of the warrants.

Warrants are generally unsecured obligations of their issuers and are not standardized foreign currency options issued by the
Options Clearing Corporation ("OCC"). Unlike foreign currency options issued by OCC, the terms of foreign exchange warrants
generally will not be amended in the event of governmental or regulatory actions affecting exchange rates or in the event of the
imposition of other regulatory controls affecting the international currency markets.

The initial public offering price of foreign currency warrants is generally considerably in excess of the price that a
commercial user of foreign currencies might pay in the interbank market for a comparable option involving significantly larger
amounts of foreign currencies.

Foreign currency warrants are subject to significant foreign exchange risk, including risks arising from complex political or
economic factors.

Foreign Currency Transactions. A forward foreign currency exchange contract involves an obligation to purchase or sell a
specific currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties
at a price set at the time of the contract. These contracts are principally traded in the interbank market conducted directly
between currency traders (usually large, commercial banks) and their customers. A forward contract generally has no deposit
requirement, and no commissions are charged at any stage for trades.

A Fund may enter into forward contracts for a variety of purposes in connection with the management of the foreign securities
portion of its portfolio. A Fund's use of such contracts would include, but not be limited to, the following:

(1) When the Fund enters into a contract for the purchase or sale of a security denominated in a foreign currency, it may desire
to "lock in" the U.S. dollar price of the security. By entering into a forward contract for the purchase or sale, for a fixed
amount of dollars, of the amount of foreign currency involved in the underlying security transactions, the Fund will be able
to protect itself against a possible loss resulting from an adverse change in the relationship between the U.S. dollar and the
subject foreign currency during the period between the date the security is purchased or sold and the date on which payment is
made or received.

(2) When a Fund determines that one currency may experience a substantial movement against another currency, including the U.S.
dollar, a Fund may enter into a forward contract to sell or buy the amount of the former foreign currency, approximating the
value of some or all of a Fund's portfolio securities denominated in such foreign currency.

Alternatively, where appropriate, a Fund may hedge all or part of its foreign currency exposure through the use of a basket of
currencies or a proxy currency where such currency or currencies act as an effective proxy for other currencies. In such a
case, a Fund may enter into a forward contract where the amount of the foreign currency to be sold exceeds the value of the
securities denominated in such currency. The use of this basket hedging technique may be more efficient and economical than
entering into separate forward contracts for each currency held in a Fund.

The precise matching of the forward contract amounts and the value of the securities involved will not generally be possible
since the future value of such securities in foreign currencies will change as a consequence of market movements in the value
of those securities between the date the forward contract is entered into and the date it matures. The projection of
short-term currency market movement is extremely difficult, and the successful execution of a short-term hedging strategy is
highly uncertain.

Under normal circumstances, currency risk will be considered when deciding whether to buy or sell a security and as part of
the overall diversification strategies. However, Thrivent Investment Mgt. and Price International believe that it is important
to have the flexibility to enter into such forward contracts when it determines that the best interests of the Fund will be
served.

A Fund may enter into forward contracts for any other purpose consistent with the Fund's investment objective and program.
However, a Fund will not enter into a forward contract, or maintain exposure to any such contract(s), if the amount of foreign
currency required to be delivered thereunder would exceed the Fund's holdings of liquid, high-grade debt securities, currency
available for cover of the forward contract(s), or other suitable cover as permitted by the SEC. In determining the amount to be
delivered under a contract, the Fund may net offsetting positions.

At the maturity of a forward contract, a Fund may sell the portfolio security and make delivery of the foreign currency, or
it may retain the security and either extend the maturity of the forward contract (by "rolling" that contract forward) or may
initiate a new forward contract.

If a Fund retains the portfolio security and engages in an offsetting transaction, the Fund will incur a gain or a loss (as
described below) to the extent that there has been movement in forward contract prices. If a Fund engages in an offsetting
transaction, it may subsequently enter into a new forward contract to sell the foreign currency. Should forward prices decline
during the period between a Fund's entering into a forward contract for the sale of a foreign currency and the date it enters into
an offsetting contract for the purchase of the foreign currency, the Fund will realize a gain to the extent the price of the
currency it has agreed to sell exceeds the price of the currency it has agreed to purchase. Should forward prices increase, the
Fund will suffer a loss to the extent of the price of the currency it has agreed to purchase exceeds the price of the currency it
has agreed to sell.

A Fund's dealing in forward foreign currency exchange contracts will generally be limited to the transactions described
above. However, the Funds reserve the right to enter into forward foreign currency contracts for different purposes and under
different circumstances. Of course, the Funds are not required to enter into forward contracts with regard to foreign
currency-denominated securities and will not do so unless deemed appropriate. It also should be realized that this method of
hedging against a decline in the value of a currency does not eliminate fluctuations in the underlying prices of the securities.
It simply establishes a rate of exchange at a future date. Additionally, although such contracts tend to minimize the risk of
loss due to a decline in the value of the hedged currency, at the same time, they tend to limit any potential gain that might
result from an increase in the value of that currency.

Although a Fund values its assets daily in terms of U.S. dollars, it does not intend to convert its holdings of foreign
currencies into U.S. dollars on a daily basis. It will do so from time to time, and there are costs associated with currency
conversion. Although foreign exchange dealers do not charge a fee for conversion, they do realize a profit based on the
difference (the "spread") between the prices at which they are buying and selling various currencies. Thus, a dealer may offer to
sell a foreign currency to the fund at one rate, while offering a lesser rate of exchange should the fund desire to resell that
currency to the dealer.

Principal Exchange Rate Linked Securities. Principal exchange rate linked securities are debt obligations the principal on
which is payable at maturity in an amount that may vary based on the exchange rate between the U.S. dollar and a particular
foreign currency at or about that time. The return on "standard" principal exchange rate linked securities is enhanced if the
foreign currency to which the security is linked appreciates against the U.S. dollar, and is adversely affected by increases in
the foreign exchange value of the U.S. dollar. "Reverse" principal exchange rate linked securities are like the "standard"
securities, except that their return is enhanced by increases in the value of the U.S. dollar and adversely impacted by increases
in the value of foreign currency.

Interest payments on the securities are generally made in U.S. dollars at rates that reflect the degree of foreign currency
risk assumed or given up by the purchaser of the notes (i.e., at relatively higher interest rates if the purchaser has assumed
some of the foreign exchange risk, or relatively lower interest rates if the issuer has assumed some of the foreign exchange risk,
based on the expectations of the current market).

Principal exchange rate linked securities may in limited cases be subject to acceleration of maturity (generally, not without
the consent of the holders of the securities), which may have an adverse impact on the value of the principal payment to be made
at maturity.

Performance Indexed Paper. Performance indexed paper is U.S. dollar-denominated commercial paper the yield of which is linked
to certain foreign exchange rate movements. The yield to the investor on performance indexed paper is established at maturity as a
function of spot exchange rates between the U.S. dollar and a designated currency as of or about that time (generally, the index
maturity two days prior to maturity). The yield to the investor will be within a range stipulated at the time of purchase of the
obligation. Generally, the guaranteed minimum rate of return is below, and a potential maximum rate of return that is above,
market yields on U.S. dollar-denominated commercial paper. In addition, both the minimum and maximum rates of return on the
investment generally correspond to the minimum and maximum values of the spot exchange rate two business days prior to maturity.

TEMPORARY DEFENSIVE INVESTMENTS (ALL FUNDS EXCEPT LB MONEY MARKET FUND)

In response to market, economic, political, or other conditions, each Fund may invest without limitation in cash, preferred
stocks, or investment-grade debt securities for temporary defensive purposes. If the Fund does this, different factors could
affect the Fund's performance and it may not achieve its investment objective.

INVESTMENT LIMITATIONS

The fundamental investment restrictions for the Funds are set forth below. These fundamental investment restrictions may not
be changed by a Fund except by the affirmative vote of a majority of the outstanding voting securities of that Fund as defined in
the Investment Company Act of 1940. (Under the Investment Company Act of 1940, a "vote of the majority of the outstanding voting
securities" means the vote, at a meeting of security holders duly called, (i) of 67% or more of the voting securities present at a
meeting if the holders of more than 50% of the outstanding voting securities are present or represented by proxy or (ii) of more
than 50% of the outstanding voting securities, whichever is less (a "1940 Act Majority Vote").) Under these restrictions, with
respect to each Fund:

(1) The Fund may not borrow money, except that the Fund may borrow money (through the issuance of debt securities or
otherwise) in an amount not exceeding one-third of the Fund's total assets immediately after the time of such
borrowing.

(2) The Fund may not purchase or sell commodities or commodity contracts, except that the Fund may invest in financial
futures contracts, options thereon and similar instruments.

(3) The Fund may not purchase or sell real estate unless acquired as a result of ownership of securities or other
instruments, except that the Fund may invest in securities or other instruments backed by real estate or securities
of companies engaged in the real estate business or that invest or deal in real estate.

(4) The Fund may not engage in underwriting or agency distribution of securities issued by others; provided, however, that
this restriction shall not be construed to prevent or limit in any manner the power of the Fund to purchase and resell
restricted securities or securities for investment.

(5) The Fund may not lend any of its assets except portfolio securities. The purchase of corporate or U.S. or foreign
governmental bonds, debentures, notes, certificates of indebtedness, repurchase agreements or other debt securities
of an issuer permitted by the Fund's investment objective and policies will not be considered a loan for purposes of
this limitation.

(6) The Fund may not with respect to 75% of its total assets, purchase the securities of any issuer (except Government
Securities, as such term is defined in the Investment Company Act of 1940) if, as a result, the Fund would own more
than 10% of the outstanding voting securities of such issuer or the Fund would have more than 5% of its total assets
invested in the securities of such issuer.

(7) The Fund may not issue senior securities, except as permitted under the Investment Company Act of 1940 or any
exemptive order or rule issued by the Securities and Exchange Commission.

(8) The Fund may, notwithstanding any other fundamental investment policy or limitation, invest all of its assets in
the securities of a single open-end management investment company with substantially the same fundamental investment
objectives, policies, and limitations as the Fund.

(9) The Fund may not invest in a security if the transaction would result in 25% or more of the Fund's total assets being
invested in any one industry. With respect to Lutheran Brotherhood Money Market Fund, this restriction does not apply
to Government Securities (as such term is defined in the Investment Company Act of 1940) or instruments issued by
domestic banks. This restriction does not apply to LB Municipal Bond Fund.

The following nonfundamental investment restriction may be changed without shareholder approval. Under this restriction with
respect to each Fund:

(1) The Fund will not purchase any security while borrowings, including reverse repurchase agreements, representing more
than 5% of the Fund's total assets are outstanding.

Section 18(g) of the 1940 Act defines a "senior security" as any bond, debenture, note, or similar obligation constituting a
security and evidencing indebtedness. Section 18(f)(1) of the 1940 Act prohibits an open-end investment company from issuing
senior securities but permits borrowings from a bank if immediately after the borrowing there is asset coverage of at least 300%
and provided further that, in the event that such asset coverage falls below 300%, the investment company will, within 3 days (not
including Sundays and holidays), reduce the amount of its borrowings to an extent that the asset coverage of such borrowings shall
be at least 300%. The SEC staff has taken the position that a fund may engage in certain leveraged transactions, such as short
sales and financial futures contracts, without violating Section 18(f)(1) if it segregates fund assets.

FUND MANAGEMENT

THE FUNDS' TRUSTEES AND OFFICERS

The Board of Trustees is responsible for the management and supervision of the Funds' business affairs and for exercising all
powers except those reserved to the shareholders. Each Trustee, except Mr. Nicholson, also serves as a Director of LB Series
Fund, Inc., a registered investment company consisting of 14 Portfolios that serve as the underlying funds for the variable
annuity and variable universal life contracts issued by Thrivent Financial for Lutherans ("Thrivent Financial") and Lutheran
Brotherhood Variable Insurance Products Company ("LBVIP"). Also, in addition to serving as Director of LB Series Fund, Inc., Mr.
Gilbert serves as a Trustee of The AAL Mutual Funds (a registered investment company consisting of 20 Funds, which offer Class A,
Class B and Institutional Class shares) and as a Director of AAL Variable Product Series Fund, Inc. (a registered investment
company consisting of 14 Portfolios that serve as the underlying funds for variable annuity contracts issued by Thrivent Financial
and LBVIP and variable universal life contracts issued by Thrivent Financial.)

The following tables provides information about the Trustees and officers of the Trust.

INTERESTED TRUSTEES

---------------------------- ----------------------------------- ---------------------------------- --------------------------------
Position with the Fund, Length of Principal Occupation During the Other Directorships Held by
Name, Address and Age Service and Term of Office Past 5 Years Trustee
---------------------------- ----------------------------------- ---------------------------------- --------------------------------
---------------------------- ----------------------------------- ---------------------------------- --------------------------------
John O. Gilbert** Chairman and Trustee since Chairman, Thrivent Financial for Chairman of the Life Office
625 Fourth Avenue South January, 2003; Term expires upon Lutherans since 2002; Chairman, Management Association (LOMA)
Minneapolis, MN attaining age 70 President and Chief Executive board of directors; member of
Age 60 Officer, Aid Association for the board of regents for Luther
Lutherans from 1999 to 2002; College in Decorah, Iowa; member
President and Chief Executive of the board for Fox PAC -
Officer, Aid Association for Performing Arts Center in
Lutherans from 1996 to 1999 Appleton, Wisconsin; Trustee,
Luther Seminary Foundation
---------------------------- ----------------------------------- ---------------------------------- --------------------------------
---------------------------- ----------------------------------- ---------------------------------- --------------------------------
Bruce J. Nicholson** Trustee since 1995; Term expires President and Chief Executive Director, St. Olaf Board of
625 Fourth Avenue South upon attaining age 70 Officer, Thrivent Financial for Regents; Director, Luther
Minneapolis, MN Lutherans since 2002; President Seminary; Director, Minnesota
Age 56 and Chief Executive Officer, Orchestra; Director, Danny
Lutheran Brotherhood from 2000 Thompson Memorial; Director,
to 2001; President and Chief Insurance Federation of
Operating Officer, Lutheran Minnesota; Director, Minnesota
Brotherhood from 1999 to 2000; Business Partnership
Executive Vice President and
Chief Operating Officer,
Lutheran Brotherhood from 1998
to 1999; Executive Vice
President and Chief Financial
Officer, Lutheran Brotherhood
from 1990 to 1998

INDEPENDENT TRUSTEES
------------------------------------------------------------------------------------------------------------------------------------
---------------------------- ----------------------------------- ---------------------------------- --------------------------------
Name, Address and Age Position with the Fund, Length of Principal Occupation During the Other Directorships Held by
Service and Term of Office Past 5 Years Trustee
---------------------------- ----------------------------------- ---------------------------------- --------------------------------
---------------------------- ----------------------------------- ---------------------------------- --------------------------------
Herbert F. Eggerding, Jr. Trustee since May, 1990; Term Management consultant to several None
625 Fourth Avenue South expires upon attaining age 70 privately owned companies since
Minneapolis, MN 1997
Age 65
---------------------------- ----------------------------------- ---------------------------------- --------------------------------
---------------------------- ----------------------------------- ---------------------------------- --------------------------------
Noel K. Estenson Trustee since June, 1997; Term Retired President and Chief None
625 Fourth Avenue South expires upon attaining age 70 Executive Officer, CENEX, Inc.
Minneapolis, MN since 2000; President and Chief
Age 64 Executive Officer, CENEX, Inc.
from 1987 to 2000; Vice
Chairman, CF Industries from
1997 to 1999
---------------------------- ----------------------------------- ---------------------------------- --------------------------------
---------------------------- ----------------------------------- ---------------------------------- --------------------------------
Jodi L. Harpstead Trustee since September, 1998; Vice President & General Director, Delta Dental Plan of
625 Fourth Avenue South Term expires upon attaining Manager, Cardial Surgery Minnesota
Minneapolis, MN age 70 Technologies for Medtronic, Inc.
Age 46 since 2002; President, Global
Marketing and U.S. Sales,
Cardiac Rhythm Management for a
Medtronic, Inc. from 2001 to
2002; Vice President, U.S.
Pacing Sales Manager for
Medtronic, Inc. from 1996 to 2001
---------------------------- ----------------------------------- ---------------------------------- --------------------------------
Connie M. Levi Trustee since October, 1993; Term Retired President of the Greater Director, Norstan, Inc.
625 Fourth Avenue South expires upon attaining age 70 Minneapolis Chamber of Commerce
Minneapolis, MN
Age 63
---------------------------- ----------------------------------- ---------------------------------- --------------------------------

OFFICERS

---------------------------- ----------------------------------- -------------------------------------------------------------------
Position with the Fund, Length of
Name, Address and Age Service and Term of Office Principal Occupation During the Past 5 Years
---------------------------- ----------------------------------- -------------------------------------------------------------------
---------------------------- ----------------------------------- -------------------------------------------------------------------
Pamela J. Moret President since 2002; Serves at Senior Vice President, Marketing and Products, Thrivent Financial
625 Fourth Avenue South discretion of the Board until her for Lutherans since 2002; Senior Vice President, Products, American
Minneapolis, MN successor is elected Express Financial Advisors from 2000 to 2001; Vice President,
Age 47 Variable Assets, American Express Financial Advisors from 1996 to
2000
---------------------------- ----------------------------------- -------------------------------------------------------------------
---------------------------- ----------------------------------- -------------------------------------------------------------------
Charles D. Gariboldi Treasurer and Principal Head of Investment Accounting, Thrivent Financial for Lutherans
625 Fourth Avenue South Accounting Officer since 2002; since 2002; Head of Investment Accounting, Aid Association for
Minneapolis, MN Serves at discretion of the Lutherans from 1999 to 2001; Treasurer, The AAL Mutual Funds from
Age 43 Board until his successor is 1997 to 1999
elected
---------------------------- ----------------------------------- -------------------------------------------------------------------
---------------------------- ----------------------------------- -------------------------------------------------------------------
John C. Bjork Secretary since 2000; Serves at Senior Counsel, Thrivent Financial for Lutherans since 2002;
625 Fourth Avenue South discretion of the Board until his Counsel, Lutheran Brotherhood from 1987 to 2001
Minneapolis, MN successor is elected
Age 49
---------------------------- ----------------------------------- -------------------------------------------------------------------
---------------------------- ----------------------------------- -------------------------------------------------------------------
James H. Abitz Vice President since 2002; Serves Senior Vice President, Investments, Thrivent Financial for
625 Fourth Avenue South at discretion of the Board until Lutherans since 2002; Senior Vice President and Chief Investment
Minneapolis, MN his successor is elected Officer, Aid Association for Lutherans from 1999 to 2001; Vice
Age 57 President, Investments, Aid Association for Lutherans from 1998 to
1999
---------------------------- ----------------------------------- -------------------------------------------------------------------
---------------------------- ----------------------------------- -------------------------------------------------------------------
Karl D. Anderson Vice President since 2003; Serves Head of Investment Product Solutions Management, Thrivent Financial
625 Fourth Avenue South at discretion of the Board until for Lutherans since 2002; Vice President and Actuary, Aid
Minneapolis, MN his successor is elected Association for Lutherans from 1997 to 2002
Age 41
---------------------------- ----------------------------------- -------------------------------------------------------------------
---------------------------- ----------------------------------- -------------------------------------------------------------------
Frederick P. Johnson Vice President since 1998; Serves Vice President, Investment Operations, Thrivent Financial for
625 Fourth Avenue South at discretion of the Board until Lutherans since 2002; Vice President, Investment Operations,
Minneapolis, MN his successor is elected Lutheran Brotherhood in 2001; Assistant Vice President, Investment
Age 40 Operations, Lutheran Brotherhood from 1994 to 2001
---------------------------- ----------------------------------- -------------------------------------------------------------------
---------------------------- ----------------------------------- -------------------------------------------------------------------
Brenda J. Pederson Vice President since 1998; Serves Vice President, Member Support and Mutual Fund Operations, Thrivent
625 Fourth Avenue South at discretion of the Board until Financial for Lutherans since 2002; Vice President, Member
Minneapolis, MN her successor is elected Services, Lutheran Brotherhood from 2001 to 2002; Assistant Vice
Age 41 President, Member Services, Lutheran Brotherhood from 1997 to 2001
---------------------------- ----------------------------------- -------------------------------------------------------------------
---------------------------- ----------------------------------- -------------------------------------------------------------------
James E. Nelson Assistant Secretary since 2002; Head of Securities Law, Thrivent Financial for Lutherans since
625 Fourth Avenue South Serves at discretion of the Board 2002; Head of Securities Law, Lutheran Brotherhood from 2001 to
Minneapolis, MN until his successor is elected 2002; Counsel and head of Insurance Practice Group, Law Division
Age 42 of ING ReliaStar (formerly ReliaStar Financial Corp.) from 1998 to
2001
---------------------------- ----------------------------------- -------------------------------------------------------------------
---------------------------- ----------------------------------- -------------------------------------------------------------------
Marlene J. Nogle Assistant Secretary since 2000; Senior Counsel, Thrivent Financial for Lutherans since 2002; Senior
625 Fourth Avenue South Serves at discretion of the Board Counsel and Assistant Vice President, Lutheran Brotherhood from
Minneapolis, MN until her successor is elected 1991 to 2002
Age 55
---------------------------- ----------------------------------- -------------------------------------------------------------------
---------------------------- ----------------------------------- -------------------------------------------------------------------
Todd J. Kelly Assistant Treasurer since 2002; Head of Fund Accounting Operations, Thrivent Financial for
222 West College Avenue Serves at discretion of the Board Lutherans since 2002; Manager, Mutual Fund Accounting, Aid
Appleton, WI until his successor is elected Association for Lutherans from 1996 to 2002
Age 33
---------------------------- ----------------------------------- -------------------------------------------------------------------
---------------------------- ----------------------------------- -------------------------------------------------------------------
Gerard V. Vaillancourt Assistant Treasurer since 2002; Head of Fund Accounting Administration, Thrivent Financial for
625 Fourth Avenue South Serves at discretion of the Board Lutherans since 2002; Manager-Portfolio Compliance, Lutheran
Minneapolis, MN until his successor is elected Brotherhood from 2001 to 2002; Manager-Fund Accounting, Minnesota
Age 35 Life from 2000 to 20010 Supervisor-Securities Accounting, Lutheran
Brotherhood from 1998 to 2000
---------------------------- ----------------------------------- -------------------------------------------------------------------

** "Interested person" of the Fund as defined in the Investment Company Act of 1940 by virtue of positions with Thrivent Financial.

COMMITTEES OF THE BOARD OF TRUSTEES
The Committees of the Board of Trustees are comprised of the Independent Trustees. The responsibilities of the Committees are
described below.

Audit Committee. The present members of the Audit Committee are Ms. Levi (Chairwoman), Mr. Eggerding, Mr. Estenson, and Ms.
Harpstead. The Audit Committee assists the Board of Trustees in fulfilling its duties relating to accounting and financial
reporting practices and serves as a direct line of communication between the Board of Trustees and the Trust's independent
accountants. The Audit Committee is responsible for recommending the engagement or retention of the Trust's independent
accountants, reviewing with the independent accountants the plan and the results of the auditing engagement, approving
professional services provided by the independent accountants prior to the performance of such services, considering the range of
audit and non-audit fees, reviewing the independence of the independent accountants, reviewing the scope and results of procedures
of internal auditing, and reviewing the system of internal accounting control. The Audit Committee of the Board of Trustees held
two meetings during the fiscal year ended October 31, 2002.

Contracts Committee. The present members of the Contracts Committee are Mr. Eggerding, (Chairman), Mr. Estenson, Ms. Harpstead,
and Ms. Levi. The function of the Contracts Committee is to assist the Board of Trustees in fulfilling its duties with respect to
the review and approval of contracts between the Trust and other entities, including entering into new contracts and the renewal
of existing contracts. The Contracts Committee considers investment advisory, distribution, transfer agency, administrative
service and custodial contracts, and such other contracts as the Board of Trustees deems necessary or appropriate for the
continuation of operations of each Fund. The Contracts Committee held two meetings during the fiscal year ended October 31, 2002.

Governance Committee. The present members of the Governance Committee are Mr. Estenson (Chairman), Ms. Harpstead, Ms. Levi, and
Mr. Eggerding. The Governance Committee assists the Board of Trustees in fulfilling its duties with respect to the governance of
the Trust, including recommendations regarding evaluation of the Board of Trustees, compensation of the Trustees and composition
of the committees and the Board's membership. The Governance Committee makes recommendations regarding nominations for Trustees,
and will consider nominees suggested by shareholders. The Governance Committee held two meetings during the fiscal year ended
October 31, 2002.

BENEFICIAL INTEREST IN THE FUND BY TRUSTEES

The following tables provides information as of December 31, 2002 regarding the dollar range of beneficial ownership by each
Trustee in each series of the Fund. In addition, the amount shown in the last column reflects the aggregate amount of each
Trustee's beneficial ownership in all registered investment companies within the investment company complex which are overseen by
the Trustee.

------------------------- ---------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES
------------------------- ---------------------------------------------------------------------------------------------------------
Aggregate Dollar Range of Beneficial
Ownership
in All Registered Investment Companies
Dollar Range of Beneficial Ownership Overseen by the Trustee in the
Name of Trustee in the Fund Investment Company Complex
------------------------- ---------------------------------------------------------------------------------------------------------
John O. Gilbert LB Opportunity Growth Fund None Over $100,000
LB Mid Cap Growth Fund None
LB World Growth Fund None
LB Growth Fund None
LB Fund None
LB Value Fund None
LB High Yield Fund None
LB Income Fund None
LB Municipal Bond Fund None
LB Limited Maturity Bond Fund None
LB Money Market Fund None

Aggregate Dollar Range of Beneficial Ownership
in All Registered Investment Companies
Dollar Range of Beneficial Overseen by the Trustee in the
Name of Trustee Ownership in the Fund Investment Company Complex
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
Herbert F. Eggerding, Jr. LB Opportunity Growth Fund $1-$10,000 Over $100,000
LB Mid Cap Growth Fund $10,001 - $50,000
LB World Growth Fund $1-$10,000
LB Growth Fund $10,001-$50,000
LB Fund $50,001-$100,000
LB Value Fund $1-$10,000
LB High Yield Fund $10,001-$50,000
LB Income Fund $10,001-$50,000
LB Municipal Bond Fund $1-$10,000
LB Limited Maturity Bond Fund $10,001-$50,000
LB Money Market Fund $10,001-$50,000

-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
Noel K. Estenson LB Opportunity Growth Fund $50,001-$100,000 Over $100,000
LB Mid Cap Growth Fund Over $100,000
LB World Growth Fund None
LB Growth Fund $50,001-$100,000
LB Fund None
LB Value Fund None
LB High Yield Fund Over $100,000
LB Income Fund $50,001-$100,000
LB Municipal Bond Fund None
LB Limited Maturity Bond Fund None
LB Money Market Fund $50,001-$100,000
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
Jodi L. Harpstead LB Opportunity Growth Fund $1-$10,000 $50,001-$100,000
LB Mid Cap Growth Fund $1-$10,000
LB World Growth Fund $1-$10,000
LB Growth Fund $1-$10,000
LB Fund $10,001-$50,000
LB Value Fund $1-$10,000
LB High Yield Fund $1-$10,000
LB Income Fund $1-$10,000
LB Municipal Bond Fund $1-$10,000
LB Limited Maturity Bond Fund $1-$10,000
LB Money Market Fund $10,001-$50,000
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
Connie M. Levi LB Opportunity Growth Fund $1-$10,000 $50,001-$100,000
LB Mid Cap Growth Fund None
LB World Growth Fund None
LB Growth Fund None
LB Fund $1-$10,000
LB Value Fund None
LB High Yield Fund $1-$10,000
LB Income Fund $1-$10,000
LB Municipal Bond Fund $1-$10,000
LB Limited Maturity Bond Fund None
LB Money Market Fund None
-----------------------------------------------------------------------------------------------------------------------------------

COMPENSATION OF TRUSTEES AND OFFICERS

The Fund makes no payments to any of its officers for services performed for the Fund. The Fund pays the Trustees who are
not interested persons an annual compensation of $47,000 to attend meetings of the Board of Trustees. A designated committee
chairperson or "lead" Trustee is compensated an additional $2,500 per year for each such position. Trustees who are not
interested persons of the Trust are reimbursed by the Trust for any expenses they may incur by reason of attending Board meetings
or in connection with other services they may perform in connection with their duties as Trustees of the Trust. The Trustees
receive no pension or retirement benefits in connection with their service to the Fund.

For the fiscal year ended October 31, 2002, the Trustees of the Trust received the following amounts of compensation either
directly or in the form of payments made into a deferred compensation plan:

AGGREGATE TOTAL COMPENSATION
NAME AND POSITION COMPENSATION PAID BY FUND
OF PERSON FROM TRUST AND FUND COMPLEX (1)

John O. Gilbert(2) $ $ 0 $ 0
Chairman and Trustee

Bruce J. Nicholson(2) 0 0
Trustee

Herbert F. Eggerding, Jr. 25,628 50,500
Trustee

Noel K. Estenson 24,207(3) 48,000
Trustee

Jodi L. Harpstead 22,786 45,500
Trustee

Connie M. Levi 24,207 48,000
Trustee
---------------------------------------------------------------------------------------------------
(1) The "Fund Complex" includes the 11 series of The Lutheran Brotherhood Family of
Funds and the 14 portfolios of LB Series Fund, Inc.
(2) "Interested person" of the Fund as defined in the Investment Company Act of 1940.
(3) Mr. Estenson elected to receive a portion of his compensation as deferred compensation.
The total amount of deferred compensation payable to Mr. Estenson as of October 31, 2002,
was $0.

CODE OF ETHICS

The Trust, Thrivent Investment Mgt. and T. Rowe Price International Inc. ("Price International") have each adopted a code of
ethics pursuant to the requirements of the 1940 Act. Under the Codes of Ethics, personnel are only permitted to engage in
personal securities transactions in accordance with certain conditions relating to such person's position, the identity of the
security, the timing of the transaction, and similar factors. Transactions in securities that may be held by the Funds are
permitted, subject to compliance with applicable provisions of the Code. Personal securities transactions must be reported
quarterly and broker confirmations of such transactions must be provided for review.

CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES

CONTROL PERSONS

As of December 31, 2002, no one was considered a control person of the Funds. A control person is one who has beneficial
interest in more than 25% of the voting securities of a Fund or one who asserts or is adjudicated to have control of a Fund.

PRINCIPAL HOLDERS

As of December 31, 2002, the following were principal holders of a Fund's securities. Principal holders are those who own
(either of record or beneficially) 5% or more of a Class of a Fund's outstanding securities:

Owner % Ownership
-------------------------------- -----------------------------------------
Thrivent Financial for Lutherans 6.810% Class A LB Growth Fund
(including its wholly-owned 6.633% Class A LB Value Fund
subsidiary companies) 7.105% Class A LB Limited Maturity
625 4th Avenue South Bond Fund
Minneapolis, MN 55415 6.491% Class B LB Growth Fund
9.110% Class B LB Value Fund
88.226% Class B LB Limited Maturity
Bond Fund
80.143% Institutional Class LB Growth
Fund
86.982% Institutional Class LB Value
Fund
19.652% Institutional Class LB Fund
6.123% Institutional Class LB Income
Fund
42.158% Institutional Class LB Mid
Cap Growth Fund
91.190% Institutional Class LB
Opportunity Growth Fund
32.301% Institutional Class LB World
Growth Fund
86.975% Institutional Class LB Money
Market Fund
24.212% Institutional Class LB High
Yield Fund
72.573% Institutional Class LB
Limited Maturity Bond Fund

Bethesda Lutheran Homes and 7.841% Institutional Class LB
Services Inc. Growth Fund
700 Hoffman Drive
Watertown, WI 53094

Better Vision Optical Co. 7.929% Institutional Class LB
125 South Fourth Street Municipal Bond Fund
DeKalb, IL 60115

Calahan Family Partnership 27.620% Institutional Class LB
c/o Julie Bauer Municipal Bond Fund
6314 Hillview Way
Missoula, MT 59803

Donaldson Lufkin & Jenrette 5.328% Institutional Class LB Value
Securities Corp. Fund
ATTN: Mutual Funds 10.909% Institutional Class LB
PO Box 2052 Municipal Bond Fund
Jersey City, NJ 07303

Paul & Ralph Efthimiou DBA 7.747% Institutional Class LB
P & R Oil, Inc. Municipal Bond Fund
16 W. Tioga Street
Spencer, NY 14883

FFB Financial Partnership 10.653% Institutional Class LB
Fred Bashore - G.P. Municipal Bond Fund
12435 E. Doubletree Road
Scottsdale, AZ 85259

Hawkeye Telephone Company 7.456% Institutional Class LB
c/o Chuck Gray Municipal Bond Fund
20887 U Avenue
Hawkeye, IA 52147

J G L Farms Inc. 5.932% Institutional Class LB
c/o Thomas Johnson Municipal Bond Fund
501 Sunset Blvd.
Conrad, MT 59425

Lutheran Community Foundation 54.234% Institutional Class LB Fund
ATTN: Tom Peterson 44.734% Institutional Class LB Income
625 Fourth Avenue South #1415 Fund
Minneapolis, MN 55415 25.922% Institutional Class LB Mid
Cap Growth Fund
62.028% Institutional Class LB World
Growth Fund

Maril & Co. FBO 6X 7.456% Institutional Class LB
c/o Marshall & Ilsley Trust Municipal Bond Fund
1000 North Water Street
Milwaukee, WI 53202

Stoner Homesteader Farms, Inc. 7.776% Institutional Class LB
Rural Box 355 Municipal Bond Fund
Outlook, MT 59252

MANAGEMENT OWNERSHIP

As of December 31, 2002, the officers and Trustees owned less than 1% of a Fund's shares.

INVESTMENT ADVISORY SERVICES

INVESTMENT ADVISER

The Funds' investment adviser, Thrivent Investment Mgt., was organized as a Delaware corporation. Thrivent Investment Mgt.
and its affiliates have been in the investment advisory business since 1970. Thrivent Investment Mgt. is a wholly-owned
subsidiary of Thrivent Financial Holdings, Inc., which, in turn, is a wholly-owned subsidiary of Thrivent Financial, a fraternal
benefit society. The officers and directors of Thrivent Investment Mgt. who are affiliated with the Trust are set forth below
under "Investment Advisory Services-Affiliated Persons".

INVESTMENT SUBADVISER

Investment decisions for LB World Growth Fund are made by Price International, which Thrivent Investment Mgt. has engaged as
the subadviser for that Fund. Price International manages that Fund on a daily basis, subject to the overall direction of Thrivent
Investment Mgt. and the Fund's Board of Trustees.

Price International is one of the world's largest international mutual fund asset managers with the U.S. equivalent of about
$18.0 billion under management as of December 31, 2002 in its offices in Baltimore, London, Tokyo, Singapore, Paris, Hong Kong,
and Buenos Aires. Price International is wholly-owned by T. Rowe Price Associates, Inc.

AFFILIATED PERSONS

The following directors and officers of Thrivent Investment Mgt., the Funds' investment adviser, are affiliated with the
Trust:

Affiliated Person Position with Thrivent Investment Mgt.
----------------- -------------------------------------
Bruce J. Nicholson President
James H. Abitz Senior Vice President and Chief Investment Officer
Pamela J. Moret Senior Vice President
Charles D. Gariboldi Vice President
Frederick P. Johnson Vice President
Brenda J. Pederson Vice President
John C. Bjork Assistant Secretary

THE ADVISORY AND SUBADVISORY AGREEMENTS

Thrivent Investment Mgt., subject to the overall direction of the Board of Trustees, makes investment decisions for each of
the Funds, except LB World Growth Fund. Thrivent Investment Mgt. provides overall investment supervision of LB World Growth Fund's
investments, with investment decisions for LB World Growth Fund being made by Price International. Except for LB World Growth
Fund, Thrivent Investment Mgt. provides investment research and supervision of each Fund's investments and conducts a continuous
program of investment evaluation and appropriate disposition and reinvestment of each Fund's assets. Thrivent Investment Mgt.
assumes the expense of providing the personnel to perform its advisory functions.

The Master Advisory Contract ("Advisory Contract") for the Funds provides that it shall continue in effect with respect to
each Fund from year to year as long as it is approved at least annually both (i) by a vote of a majority of the outstanding voting
securities of such Fund (as defined in the 1940 Act) or by the Trustees of the Trust, and (ii) in either event by a vote of a
majority of the Trustees who are not parties to the Advisory Contract or "interested persons" of any party thereto, cast in person
at a meeting called for the purpose of voting on such approval. The Advisory Contract may be terminated on 60 days' written notice
by either party and will terminate automatically in the event of its assignment, as defined under the 1940 Act and regulations
thereunder. Such regulations provide that a transaction that does not result in a change of actual control or management of an
adviser is not deemed an assignment.

The Subadvisory Contract between the Trust and Price International provides that it shall continue in effect with respect to
LB World Growth Fund from year to year as long as it is approved at least annually both (i) by a vote of a majority of the
outstanding voting securities of such Fund (as defined in the 1940 Act) or by the Trustees of the Trust, and (ii) in either event
by a vote of a majority of the Trustees who are not parties to the Subadvisory Contract or "interested persons" of any party
thereto, cast in person at a meeting called for the purpose of voting on such approval. The Subadvisory Contract may be terminated
on 60 days' written notice by either party and will terminate automatically in the event of its assignment, as defined under the
1940 Act and regulations thereunder. Such regulations provide that a transaction that does not result in a change of actual
control or management of an adviser is not deemed an assignment.

BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENT

On December 4, 2002, the Board of Trustees, including the Trustees who are not "interested persons" of Thrivent Investment
Mgt., Thrivent Financial, or the Trust ("Independent Trustees"), unanimously voted to approve the current investment advisory
agreement between Thrivent Investment Mgt. and the Trust. In connection with its consideration of the current agreement, the
Board of Trustees reviewed the current staff of the investment operations and noted that, while the advisory agreement would be
assigned by Lutheran Brotherhood Research Corp. to Thrivent Investment Mgt. effective on January 1, 2003, both advisers are
wholly-owned subsidiaries of Thrivent Financial and both advisers have the same directors, officers and staff. The Board of
Trustees also reviewed the performance of the Funds and the performance of the affiliated funds managed by Thrivent Investment
Mgt. and Thrivent Financial. After reviewing all of these factors the Board unanimously approved the current investment advisory
agreement.

ADVISORY FEES

Thrivent Investment Mgt. receives an annual investment advisory fee from each Fund. The fee is a daily charge equal to a
percentage of the aggregate average daily net assets of the Funds. The advisory contract between Thrivent Investment Mgt. and the
Trust provides for the following advisory fees:

LB Opportunity Growth Fund $0 - $100 million .50%
$101 - $250 million .40%
$251 - $500 million .35%
$501 million - $1 billion .30%
More than $1 billion .25%

LB Mid Cap Growth Fund $0 - $100 million .45%
$101 - $250 million .40%
$251 - $500 million .35%
$501 million - $1 billion .30%
More than $1 billion .25%

LB World Growth Fund $0 - $20 million 1.00%
$21 - $50 million .85%
More than $50 million .75%

LB Growth Fund /1/ $0 - $500 million .425%
$501 million - $1 billion .375%
More than $1 billion .325%

LB Fund $0 - $500 million .40%
$501 million - $1 billion .35%
More than $1 billion .30%

LB Value Fund /2/ $0 - $500 million .40%
$501 million - $1 billion .35%
More than $1 billion .30%

LB High Yield Fund $0 - $500 million .40%
$501 million - $1 billion .35%
More than $1 billion .30%

LB Income Fund $0 - $500 million .35%
$501 million - $1 billion .325%
More than $1 billion .30%

LB Municipal Bond Fund $0 - $500 million .325%
$501 million - $1 billion .3125%
More than $1 billion .30%

LB Limited Maturity Bond Fund /3/ $0 - $500 million .30%
$501 million - $1 billion .275%
More than $1 billion .25%

LB Money Market Fund /4/ $0 - $500 million .25%
$501 million - $1 billion .225%
$1,000,000,001 - $1.5 billion .20%
$1,500,000,001 - $2 billion .175%
More than $2 billion .15%
-----------------------
/1/ As of January 1, 2003, the investment adviser has voluntarily agreed to temporarily waive a portion of its advisory fee and
to bear certain expenses associated with operating LB Growth Fund equal in the aggregate to 1.25% of the average daily net assets
of LB Growth Fund. This temporary waiver and expense offset provision may be discontinued at any time.

/2/ As of January 1, 2003, the investment adviser has voluntarily agreed to temporarily waive a portion of its advisory fee and
to bear certain expenses associated with operating LB Value Fund equal in the aggregate to 0.80% of the average daily net assets
of LB Value Fund. This temporary waiver and expense offset provision may be discontinued at any time.

/3/ As of January 1, 2003, the investment adviser voluntarily agreed to temporarily waive a portion of its advisory fee and to
bear certain expenses associated with operating Class A shares of LB Limited Maturity Bond Fund equal in the aggregate to 0.20% of
the average daily net assets of LB Limited Maturity Bond Fund. This temporary waiver and expense offset provision may be
discontinued at any time.

/4/ As of January 1, 2003, the investment adviser has voluntarily agreed to temporarily waive a portion of the advisory fees for
the LB Money Market Fund equal in the aggregate to 0.10% for Class A shares and 0.15% for Class B shares. This temporary waiver
may be discontinued at any time.

The total dollar amounts paid to Thrivent Investment Mgt. (before giving effect to any fee waivers and expense provisions)
under the investment advisory contract in effect for the last three fiscal years are as follows:

10/31/02 10/31/01 10/31/00
LB Opportunity Growth Fund $752,855 $ 950,624 $1,188,876
LB Mid Cap Growth Fund 658,114 721,439 608,540
LB World Growth Fund 778,181 956,747 1,006,743
LB Growth Fund 159,431 158,494 99,962
LB Fund 3,821,927 4,670,454 5,625,095
LB Value Fund 143,262 105,746 56,340
LB High Yield Fund 2,453,032 2,761,759 3,374,167
LB Income Fund 2,429,597 2,367,388 2,356,825
LB Municipal Bond Fund 2,074,969 1,929,286 1,846,378
LB Limited Maturity Bond Fund 219,269 123,457 79,623
LB Money Market Fund 1,737,271 1,755,459 1,601,499

Thrivent Investment Mgt. waived fees with respect to the Funds for the last three fiscal years as follows:

10/31/02 10/31/01 10/31/00
LB Opportunity Growth Fund -- -- --

LB Mid Cap Growth Fund $532,100 $483,464 --

LB World Growth Fund 219,636 222,966 --

LB Growth Fund 243,836 238,416 $148,851

LB Fund -- 125,160 812,516

LB Value Fund 232,800 164,059 118,125

LB High Yield Fund -- 61,543 446,310

LB Income Fund 354,553 344,983 343,358

LB Municipal Bond Fund -- 48,229 285,420

LB Limited Maturity Bond Fund 219,269 112,159 40,991

LB Money Market Fund 271,432 262,659 287,133

Thrivent Investment Mgt. pays Price International an annual subadvisory fee for the performance of subadvisory services for
LB World Growth Fund. The fee payable is equal to a percentage of that Fund's average daily net assets. The percentage decreases
as the Fund's assets increase. For purposes of determining the percentage level of the subadvisory fee for the Fund, the assets of
the Fund are combined with the assets of the World Growth Portfolio of LB Series Fund, Inc., another fund with investment
objectives and policies that are similar to LB World Growth Fund and for which Price International also provides subadvisory
services. The subadvisory fee Thrivent Investment Mgt. pays Price International is equal to the World Growth Fund's pro rata share
of the combined assets of the Fund and the World Growth Portfolio of LB Series Fund, Inc. and is equal to .75% of combined average
daily net assets up to $20 million, .60% of combined average daily net assets over $20 million but not over $50 million, and .50%
of combined average daily net assets over $50 million. When the combined assets of LB World Growth Fund and the World Growth
Portfolio of LB Series Fund, Inc. exceed $200 million, the subadvisory fee for LB World Growth Fund is equal to .50% of all of the
Fund's average daily net assets. When the combined assets of LB World Growth Fund and the World Growth Portfolio of LB Series Fund
exceed $500 million, the subadvisory fee for LB World Growth Fund is equal to .45% of all the Fund's average daily net assets. At
October 31, 2002, the combined assets of LB World Growth Fund and World Growth Portfolio totaled $401.0 million.

The total dollar amount paid by Thrivent Investment Mgt. to Price International under the investment subadvisory contract for
LB World Growth Fund for the fiscal year ended October 31, 2002 was $429,511.

OTHER SERVICES

CUSTODIAN

State Street Bank and Trust Company, 225 Franklin Street, Boston, Massachusetts 02110, is the Trust's custodian. As
custodian, State Street Bank and Trust Company is responsible for, among other things, safeguarding and controlling the Funds'
cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on the Funds'
investments.

TRANSFER AGENT

Thrivent Financial Investor Services Inc. ("Thrivent Financial Investor Services"), 625 Fourth Avenue South, Minneapolis,
Minnesota 55415, provides transfer agency services necessary to the Funds.

ADMINISTRATIVE SERVICES

Thrivent Financial Investor Services provides administrative personnel and services necessary to operate the Funds on a daily
basis for a fee equal to 0.02 percent of the Funds' average daily net assets. The total dollar amounts paid to Thrivent Financial
Investors Services for administrative services for the last three fiscal years are as follows:

10/31/02 10/31/01 10/31/00
LB Opportunity Growth Fund $ 39,235 $ 42,531 $ 55,079
LB Mid Cap Growth Fund 36,663 33,572 27,927
LB World Growth Fund 22,437 23,380 26,846
LB Growth Fund 9,051 7,459 4,704
LB Fund 246,280 261,364 325,006
LB Value Fund 8,684 5,287 2,817
LB High Yield Fund 151,789 143,529 178,524
LB Income Fund 171,340 137,993 137,343
LB Municipal Bond Fund 155,771 119,474 114,168
LB Limited Maturity Bond Fund 17,785 8,230 5,308
LB Money Market Fund 172,891 144,930 131,244

INDEPENDENT ACCOUNTANTS

PricewaterhouseCoopers LLP, 650 Third Avenue South, Suite 1300, Minneapolis, Minnesota 55402, serves as the Trust's
independent accountants, providing professional services including audits of the Funds' annual financial statements, assistance
and consultation in connection with Securities and Exchange Commission filings, and review of the annual income tax returns filed
on behalf of the Funds.

DISTRIBUTION AND SHAREHOLDER SERVICES

PLAN OF DISTRIBUTION AND DISTRIBUTION CONTRACT

The Trust has adopted a Plan of Distribution pursuant to Rule 12b-1 under the 1940 Act (the "12b-1 Plan") with respect to the
Class B shares of each Fund except LB Limited Maturity Bond Fund and LB Money Market Fund. The 12b-1 Plan permits, among other
things, payment by each such Fund for the purpose of:

(1) making payments to underwriters, securities dealers and others engaged in the sale of Class B shares, including payments
to Thrivent Investment Mgt. to be used to compensate or reimburse Thrivent Investment Mgt. and others (including affiliates of
Thrivent Investment Mgt.) engaged in the distribution and marketing of Class B shares or furnishing assistance to investors on an
ongoing basis;

(2) providing reimbursement of direct out-of-pocket expenditures incurred by Thrivent Investment Mgt. in connection with the
distribution and marketing of Class B shares;

(3)providing reimbursements of payments of commissions to Thrivent Investment Mgt.'s field force and others involved in the
distribution of the Class B shares at the time of purchase, plus interest at a rate not to exceed prime plus 1% on the amount of
unreimbursed commissions; and

(4) providing payment of expenses relating to the formulation and implementation of marketing strategies and promotional
activities such as direct mail promotions and television, radio, newspaper, magazine and other mass media advertising; the
preparation, printing and distribution of sales literature; the preparation, printing and distribution of prospectuses of the
Trust and reports for recipients other than existing shareholders of the Trust; and obtaining such information, analyses and
reports with respect to marketing and promotional activities and investor accounts as the Trust may, from time to time, deem
advisable.

The Trust and the Funds are authorized to engage in the activities listed above, and in other activities primarily intended
to result in the sale of Class B shares, either directly or through other persons with which the Trust has entered into agreements
pursuant to the 12b-1 Plan.

The 12b-1 Plan provides that it may not be amended to increase materially the costs which a Fund may bear pursuant to the
12b-1 Plan without approval by a 1940 Act Majority Vote of the Class B shareholders. The 12b-1 Plan also provides that other
material amendments of the 12b-1 Plan must be approved by the Trustees, and by the Trustees who are neither "interested persons"
(as defined in the 1940 Act) of the Trust nor have any direct or indirect financial interest in the operation of the 12b-1 Plan or
in any related agreement (the "Qualified Trustees"), by vote cast in person at a meeting called for the purpose of considering
such amendments.

While the 12b-1 Plan is in effect, the selection and nomination of the Trustees of the Trust who are not "interested persons"
of the Trust has been committed to the discretion of the Trustees who are not "interested persons" of the Trust. The 12b-1 Plan
was initially approved by the Board of Trustees, including a majority of the Qualified Trustees, on September 9, 1997. It is
subject to annual approval, by the Board of Trustees and by the Qualified Trustees by vote cast in person at a meeting called for
the purpose of voting on the 12b-1 Plan. The 12b-1 Plan is terminable with respect to the Class B shares of any Fund at any time
by a vote of a majority of the Qualified Trustees or by 1940 Act Majority Vote of the Class B shareholders of such Fund. A
quarterly report of the amounts expended under the 12b-1 Plan and the purposes for which such expenditures were incurred must be
made to the Trustees for their review.

The Funds' principal underwriter and distributor, Thrivent Investment Mgt., is a Delaware corporation organized in 1986.
Thrivent Investment Mgt. is an indirect wholly-owned subsidiary of Thrivent Financial for Lutherans and is located at 625 Fourth
Avenue South, Minneapolis, Minnesota 55415. The officers and directors of Thrivent Investment Mgt. who are affiliated with the
Trust are set forth under "Investment Advisory Services-Affiliated Persons". Under a First Amended and Restated Distribution
Contract dated October 31, 1997, as supplemented by letter dated October 29, 1999, (the "Distribution Contract"), Thrivent
Investment Mgt. is granted the right to sell Class A, Class B and Institutional Class shares of the Funds as agent for the Trust.
Thrivent Investment Mgt. agrees to use its best efforts to secure purchasers for the shares of the Funds.

In connection with the services to be provided by Thrivent Investment Mgt. under the Distribution Contract, Thrivent
Investment Mgt. receives from each Fund (other than LB Limited Maturity Bond Fund and LB Money Market Fund) an amount with respect
to Class B shares determined at an annual rate of .75% of the average daily net asset value represented by such shares. This
amount is paid in arrears at the end of each calendar month.

The Distribution Contract was initially approved by the Board of Trustees including a majority of the Qualified Trustees, on
September 9, 1997, and will continue in effect from year to year so long as its continuance is approved at least annually by the
Board of Trustees and the Qualified Trustees.

For the fiscal year ended October 31, 2002 each Fund paid Thrivent Investment Mgt. fees under the Distribution Plan and the
distributor used all of such payments for compensation to sales personnel on behalf of the Class B shares of the Funds as follows:

LB Opportunity Growth Fund $ 87,665

LB Mid Cap Growth Fund 258,703

LB World Growth Fund 85,910

LB Growth Fund 61,649

LB Fund 551,156

LB Value Fund 52,819

LB High Yield Fund 290,558

LB Income Fund 214,323

LB Municipal Bond Fund 137,834

SHAREHOLDER SERVICING PLANS

The Trust has adopted shareholder servicing plans (each a "Shareholder Servicing Plan") for each Fund (including LB Money
Market Fund). The Shareholder Servicing Plans for the Class A and Class B shares provide that the relevant class may spend
annually, directly or indirectly, up to .25% of the average daily value of the net assets attributable to the relevant class for
shareholder servicing activities. The Shareholder Servicing Plan for the Institutional Class shares provides that the
Institutional Class may spend annually, directly or indirectly, up to .15% of the average daily value of the net assets
attributable to the relevant class for shareholder servicing activities. Under the Distribution Contract, Thrivent Investment
Mgt. has agreed to undertake certain shareholder servicing activities on behalf of the Funds in exchange for a fee. The fee
equals .25% of the average daily value of the net assets represented by Class A and Class B shares and .15% of the average daily
value of the net assets represented by Institutional Class shares. However, as of March 1, 2003, Thrivent Investment Mgt. will
voluntarily waive the .15% shareholder servicing fee for Institutional Class shares. This temporary waiver may be discontinued at
any time.

A quarterly report of the amounts expended under the Shareholder Servicing Plans, and the purposes for which such
expenditures were incurred, must be made to the Trustees for their review. Each Shareholder Servicing Plan may be amended by a
majority of the Qualified Trustees or by a 1940 Act Majority Vote by shareholders of the respective class. The Shareholder
Servicing Plans have been approved, and are subject to annual approval, by the Board of Trustees and the Qualified Trustees.

UNDERWRITING COMMISSIONS

The total dollar amounts of (i) initial sales charges reserved by Thrivent Investment Mgt. for the last three fiscal years
and (ii) contingent deferred sales charge upon redemptions of Class B shares for the fiscal year ended October 31, 2002 are as
follows:

10/31/02 10/31/01 10/31/00
Initial Initial Initial
Sales Sales Sales
Charges Charges Charges

LB Opportunity Growth Fund $ 230,209 $ 420,666 $ 499,869
LB Mid Cap Growth Fund 362,089 921,970 819,487
LB World Growth Fund 150,413 299,680 439,167
LB Growth Fund 158,027 391,851 408,484
LB Fund 1,094,460 1,996,194 2,395,038
LB Value Fund 231,749 273,871 210,507
LB High Yield Fund 1,330,888 2,155,441 2,102,904
LB Income Fund 1,049,380 1,200,395 597,711
LB Municipal Bond Fund 1,297,562 1,089,562 543,771

10/31/02 10/31/01 10/31/00
Contingent Contingent Contingent
Deferred Deferred Deferred
Sales Sales Sales
Charges Charges Charges

LB Opportunity Growth Fund $ 16,151 $ 19,381 $ 16,793
LB Mid Cap Growth Fund 49,871 42,354 27,231
LB World Growth Fund 16,478 18,404 16,357
LB Growth Fund 17,787 9,198 3,308
LB Fund 125,780 111,793 109,160
LB Value Fund 8,677 5,126 1,298
LB High Yield Fund 66,520 57,347 71,366
LB Income Fund 53,431 32,036 29,515
LB Municipal Bond Fund 38,083 25,049 20,778

BROKERAGE ALLOCATION AND OTHER PRACTICES

BROKERAGE TRANSACTIONS

In connection with the management of the investment and reinvestment of the assets of the Funds, the Advisory Contract
authorizes Thrivent Investment Mgt., acting by its own officers, directors or employees or by a duly authorized subcontractor,
including Price International, to select the brokers or dealers that will execute purchase and sale transactions for the Funds. In
executing portfolio transactions and selecting brokers or dealers, if any, Thrivent Investment Mgt. and Price International will
use reasonable efforts to seek on behalf of the Funds the best overall terms available.

In assessing the best overall terms available for any transaction, Thrivent Investment Mgt. and Price International will
consider all factors it deems relevant, including:

(1) the breadth of the market in and the price of the security,
(2) the financial condition and execution capability of the broker or dealer, and
(3) the reasonableness of the commission, if any (for the specific transaction and on a continuing basis).

In evaluating the best overall terms available, and in selecting the broker or dealer, if any, to execute a particular
transaction, Thrivent Investment Mgt. and Price International may also consider the brokerage and research services (as those
terms are defined in Section 28(e) of the Securities Exchange Act of 1934) provided to any other accounts over which Thrivent
Investment Mgt. or Price International or an affiliate of Thrivent Investment Mgt. or Price International exercises investment
discretion. Thrivent Investment Mgt. and Price International may pay to a broker or dealer who provides such brokerage and
research services a commission for executing a portfolio transaction which is in excess of the amount of commission another broker
or dealer would have charged for effecting that transaction if, but only if, Thrivent Investment Mgt. or Price International
determines in good faith that such commission was reasonable in relation to the value of the brokerage and research services
provided.

To the extent that the receipt of the above-described services may supplant services for which Thrivent Investment Mgt. or
Price International might otherwise have paid, it would, of course, tend to reduce the expenses of Thrivent Investment Mgt. or
Price International.

The investment decisions for a Fund are and will continue to be made independently from those of other investment companies
and accounts managed by Thrivent Investment Mgt., Price International, or their affiliates. Such other investment companies and
accounts may also invest in the same securities as a Fund. When purchases and sales of the same security are made at substantially
the same time on behalf of such other investment companies and accounts, transactions may be averaged as to the price and
available investments allocated as to the amount in a manner which Thrivent Investment Mgt. and its affiliates believe to be
equitable to each investment company or account, including the Fund. In some instances, this investment procedure may affect the
price paid or received by a Fund or the size of the position obtainable or sold by a Fund.

AFFILIATED TRANSACTIONS OF PRICE INTERNATIONAL

Subject to applicable SEC rules, as well as other regulatory requirements, Price International had been authorized to
allocate orders with respect to LB World Growth Fund to brokers or dealers affiliated with Price International. These brokers
ceased to be affiliates of Price International on August 8, 2000, when T. Rowe Price became the sole owner of Price International.
Such allocations have been in such amounts and proportions as Price International determined, and Price International reported
such allocations either to Thrivent Investment Mgt., which reported such allocations to the Board of Trustees, or, if requested,
directly to the Board of Trustees.

BROKERAGE COMMISSIONS

During the last three fiscal years, the Funds paid the following brokerage fees:

10/31/02 10/31/01 10/31/00
LB Opportunity Growth Fund $ 670,193 $ 422,331 $ 359,329
LB Mid Cap Growth Fund 259,497 367,965 227,616
LB World Growth Fund* 87,847 131,769 210,886
LB Growth Fund 86,995 24,137 22,437
LB Fund 545,600 786,808 1,410,865
LB Value Fund 68,005 17,734 15,511
LB High Yield Fund 7,836 17,638 47,334
LB Income 14,830 93,249 7,583
LB Municipal Bond Fund 0 0 0
LB Limited Maturity Bond Fund 2,330 1,380 162
LB Money Market Fund 0 0 0
--------------------
* Amount paid to affiliated broker-dealer is $0 for the fiscal year ended October 31, 2002, $0 for the fiscal year ended October
31, 2001, and $9,157.52 for the fiscal year ended October 31, 2000.

The table below indicates the total amount of brokerage commissions paid by each Fund to firms that provided research
services and the aggregate amount of transactions relating to such commissions for the fiscal year ended October 31, 2002:

Aggregate
Commissions Transactions
----------- ------------
LB Opportunity Growth Fund $ 576,615 $ 211,966,732
LB Mid Cap Growth Fund 213,282 102,501,214
LB World Growth Fund 53,218 10,586,289
LB Growth Fund 55,519 29,722,158
LB Fund 461,257 1,120,030,659
LB Value Fund 33,353 24,265,832
LB High Yield Fund 4,466 583,655
LB Income Fund 0 0
LB Municipal Bond Fund 0 0
LB Limited Maturity Bond Fund 0 0
LB Money Market Fund 0 0

The provision of research services was not necessarily a factor in the placement of brokerage business with these firms.

PORTFOLIO TURNOVER RATE

The rate of portfolio turnover in the Funds will not be a limiting factor when Thrivent Investment Mgt. or the subadviser
deems changes in a Fund's portfolio appropriate in view of its investment objectives. As a result, while a Fund will not purchase
or sell securities solely to achieve short term trading profits, a Fund may sell portfolio securities without regard to the length
of time held if consistent with the Fund's investment objective. A higher degree of equity portfolio activity will increase
brokerage costs to a Fund. The portfolio turnover rate is computed by dividing the dollar amount of securities purchased or sold
(whichever is smaller) by the average value of securities owned during the year. Short-term investments such as commercial paper
and short-term U.S. Government securities are not considered when computing the turnover rate.

For the last three fiscal years, the portfolio turnover rates of LB Opportunity Growth Fund, LB Mid Cap Growth Fund, LB World
Growth Fund, LB Growth Fund, LB Fund, LB Value Fund, LB High Yield Fund, LB Income Fund, LB Municipal Bond Fund and LB Limited
Maturity Bond Fund were as follows:

10/31/02 10/31/01 10/31/00
LB Opportunity Growth Fund 117% 126% 143%
LB Mid Cap Growth Fund 55% 137% 118%
LB World Growth Fund 22% 30% 40%
LB Growth Fund 59% 14% 17%
LB Fund 61% 21% 47%
LB Value Fund 109% 35% 26%
LB High Yield Fund 77% 65% 60%
LB Income Fund 170% 175% 111%
LB Municipal Bond Fund 13% 5% 12%
LB Limited Maturity Bond Fund 288% 290% 229%

The portfolio turnover rate for LB Value Fund was relatively higher in the fiscal year ending 10/31/02 as a result of a
repositioning of the Fund when there was a portfolio manager change. The portfolio turnover rate for LB Mid Cap Growth Fund was
relatively lower in the fiscal year ending 10/31/02 as a result of the defensive positioning of the Fund.

PURCHASING SHARES

Initial purchases of Fund shares must be made by check and accompanied by an application. Subsequent purchases may be made by:

- check;
- Federal Reserve or bank wire;
- Invest-by-Phone;
- Systematic Investment Plan (SIP); and
- automatic payroll deduction.

Use of checks, Federal Reserve or bank wire and Invest-by-Phone is explained in the General Information section of the Fund's
prospectus under "Buying Shares of The Lutheran Brotherhood Family of Funds".

SYSTEMATIC INVESTMENT PLAN

Under the Systematic Investment Plan program, funds may be withdrawn monthly from the shareholder's checking account and
invested in the Funds. Thrivent Investment Mgt. representatives will provide shareholders with the necessary authorization forms.

AUTOMATIC PAYROLL DEDUCTION

Under the Automatic Payroll Deduction program, funds may be withdrawn monthly from the payroll account of any eligible
shareholder of a Fund and invested in a Fund. To be eligible for this program, the shareholder's employer must permit and be
qualified to conduct automatic payroll deductions. Thrivent Investment Mgt. representatives will provide shareholders with the
necessary authorization forms.

SALES CHARGES

Purchases of Fund shares (other than LB Limited Maturity Bond Fund, LB Money Market Fund, and the Institutional Class shares)
carry either an initial sales charges (Class A) or contingent deferred sales charge (Class B). This is explained in the section
of the Funds' prospectus relating to such shares entitled, "Choosing Your Class of Shares", which also lists ways to reduce or
avoid sales charges on subsequent purchases.

In addition to the situations described in the prospectus, sales charges are waived when shares are purchased by:

- directors and regular full-time and regular part-time employees of Thrivent Financial and its subsidiaries and
affiliates;

- members of Thrivent Financial's sales force and a spouse or minor child of a sales force member; and

- any trust, pension, profit-sharing or other benefit plan for such persons.

FULL-TIME EMPLOYEES

Regular full-time and regular part-time employees of Thrivent Financial are persons who are defined as such by the Thrivent
Financial Human Resources Policy Manual.

RESTRICTION ON SALE OF SHARES PURCHASED

Sales to any of the persons or groups mentioned in this section are made only with the purchaser's written promise that the
shares will not be resold, except through redemption or repurchase by or on behalf of a Fund.

NET ASSET VALUE OF SHARES

LB OPPORTUNITY GROWTH FUND, LB MID CAP GROWTH FUND, LB WORLD GROWTH FUND,
LB GROWTH FUND, LB FUND, LB VALUE FUND, LB HIGH YIELD FUND, LB INCOME FUND, LB MUNICIPAL BOND FUND AND LB LIMITED MATURITY BOND
FUND

The net asset value per share is determined at the close of each day the New York Stock Exchange is open, or any other day as
provided by Rule 22c-1 under the Investment Company Act of 1940. Determination of net asset value may be suspended when the
Exchange is closed or if certain emergencies have been determined to exist by the Securities and Exchange Commission, as allowed
by the Investment Company Act of 1940.

Net asset value is determined by adding the market or appraised value of all securities and other assets attributable to each
class of shares; subtracting liabilities attributable to such class; and dividing the result by the number of shares of such class
outstanding.

The market value of each Fund's portfolio securities is determined at the close of regular trading of the New York Stock
Exchange (the "Exchange") on each day the Exchange is open. The value of portfolio securities is determined in the following
manner:

- Equity securities traded on the Exchange or any other national securities exchange are valued at the last sale price. If
there has been no sale on that day or if the security is unlisted, it is valued at the current bid price considered best
to represent value in the circumstances.

- Equity securities not traded on a national securities exchange are valued at the current bid price considered best to
represent the value in the circumstances, except that securities for which quotations are furnished through the nationwide
automated quotation system approved by the NASDAQ will be valued at their last sales prices so furnished on the date
of valuation, if such quotations are available for sales occurring on that day.

- Bonds and other income securities traded on a national securities exchange will be valued at the last sale price on such
national securities exchange that day. Thrivent Investment Mgt. may value such securities on the basis of prices provided
by an independent pricing service or within the range of the current bid and asked prices considered best to represent the
value in the circumstances, if those prices are believed to better reflect the fair market value of such exchange listed
securities.

- Bonds and other income securities not traded on a national securities exchange will be valued at the current bid price
considered best to represent the value in the circumstances. Such securities may also be valued on the basis of prices
provided by an independent pricing service if those prices are believed to reflect the fair market value of such
securities.

For all Funds other than the Money Market Fund, short-term securities with maturities of 60 days or less are valued at
amortized cost; those with maturities greater than 60 days are valued at the mean between bid and asked price.

Prices provided by independent pricing services may be determined without relying exclusively on quoted prices and may
consider institutional trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading
characteristics and other market data employed in determining valuation for such securities.

All other securities and assets will be appraised at fair value as determined by the Board of Trustees.

Generally, trading in foreign securities, as well as U.S. Government securities, money market instruments and repurchase
agreements, is substantially completed each day at various times prior to the close of the Exchange. The values of such securities
used in computing the net asset value of shares of a Fund are determined as of such times. Foreign currency exchange rates are
also generally determined prior to the close of the Exchange. Occasionally, events affecting the value of such securities and
exchange rates may occur between the times at which they are determined and the close of the Exchange, which will not be reflected
in the computation of net asset values. If during such periods events occur which materially affect the value of such securities,
the securities will be valued at their fair market value as determined in good faith by the Trustees of the Fund.

For purposes of determining the net asset value of shares of a Fund all assets and liabilities initially expressed in foreign
currencies will be converted into U.S. dollars quoted by a major bank that is a regular participant in the foreign exchange
market. Foreign securities may also be priced on the basis of a pricing service that takes into account the quotes provided by a
number of such major banks.

LB MONEY MARKET FUND

Securities held by LB Money Market Fund are valued on the basis of amortized cost, which involves a constant amortization of
premium or accretion of discount to maturity regardless of the impact of fluctuating interest rates on the market value of the
security. While this method provides certainty in valuation, it may result in periods in which the value as determined by
amortized cost is higher or lower than the price LB Money Market Fund would receive if it sold the security.

LB Money Market Fund anticipates that under ordinary and usual circumstances it will be able to maintain a constant net asset
value of $1.00 per share and LB Money Market Fund will use its best efforts to do so. However, such maintenance at $1.00 might
not be possible if (1) there are changes in short-term interest rates or other factors such as unfavorable changes in the credit
of issuers affecting the values of the securities held by LB Money Market Fund and LB Money Market Fund is compelled to sell such
securities at a time when the prices which it is able to realize vary significantly from the values determined on the amortized
cost basis or (2) LB Money Market Fund should have negative net income. It is expected that LB Money Market Fund will have
positive net income at the time of each determination thereof.

The utilization of the amortized cost method of valuation requires compliance with the requirements of Rule 2a-7 under the
1940 Act. Such compliance requires, among other things, the following:

(1) The Trustees must adopt procedures whereby the extent of deviation, if any, of the current net asset value per share
calculated using available market quotations (or an appropriate substitute which reflects current market conditions) from
LB Money Market Fund's net asset value per share under the amortized cost valuation method will be determined at such
intervals as the Trustees deem appropriate and reasonable in light of current market conditions, and the Trustees must
review periodically the amount of the deviation as well as the methods used to calculate the deviation;

(2) In the event such deviation from LB Money Market Fund's net asset value under the amortized cost valuation method exceeds
1/2 of 1%, the Trustees must promptly consider what action should be initiated by them, and when the Trustees believe the
extent of any deviation from LB Money Market Fund's net asset value per share under the amortized cost valuation method
may result in material dilution or any other unfair results to investors or existing shareholders, they must take such
action as they deem appropriate to eliminate or reduce to the extent reasonably practicable such dilution or unfair
results (shareholders will be notified in the event any such corrective action is taken by the Trustees);

(3) LB Money Market Fund may not purchase any instrument with a remaining maturity greater than 397 calendar days or maintain
a dollar-weighted average portfolio maturity which exceeds 90 days;

(4) LB Money Market Fund must limit its portfolio investments, including repurchase agreements, to those United States dollar-
denominated instruments that the Trustees determine present minimal credit risks and which are "eligible securities" as
defined in Rule 2a-7; and

(5) LB Money Market Fund must record, maintain and preserve certain records and observe certain reporting obligations in
accordance with Rule 2a-7.

Securities in which LB Money Market Fund invests must be U.S. dollar-denominated Eligible Securities (as defined in Rule 2a-7
under the 1940 Act) that are determined to present minimal credit risks. In general, the term "Eligible Security" is limited to
any security that:

(1) (a) either (i) has received a short-term rating from a nationally recognized statistical rating organization (NRSRO") or
has been issued by an issuer that has received a short-term rating from an NRSRO with respect to a class of debt
obligations (or any debt obligation within that class) that is comparable in priority and security with the security or
(ii) is subject to a guarantee that has received a short-term rating from an NRSRO, or a guarantee issued by a guarantor
that has received a short-term rating from an NRSRO with respect to a class of debt obligations (or any debt obligation
within that class) that is comparable in priority and security with the guarantee, (b) has a remaining maturity of 397
calendar days or less and (c) has received a rating from the requisite number of NRSROs (i.e.. two, if two organizations
have issued ratings and one if only one has issued a rating) in one of the two highest short-term major rating
categories; or

(2) is unrated but is of comparable quality to a rated security as described in (1), above, and which at the time of issuance
(a) had a remaining maturity of more than 397 calendar days and now has a remaining maturity of 397 calendar days or
less, and (b) has not received a long-term rating from an NRSRO in any NRSRO major rating category outside of the NRSRO's
three highest major rating categories, unless the security has received a long-term rating from the requisite number of
NRSROs (i.e., two, if two organizations have issued ratings and one if only one has issued a rating) in one of the three
highest long-term major rating categories.

As indicated in the Prospectus, at least 95% of LB Money Market Fund's total assets will consist of government securities and
"first tier" eligible securities as defined in Rule 2a-7 under the 1940 Act. The balance of LB Money Market Fund's assets will be
invested in "second tier" eligible securities as defined in Rule 2a-7. For this purpose, "second tier" eligible securities
generally are those which have been (i) rated by at least two nationally recognized statistical rating organizations in one of the
two highest rating categories for short-term obligations (or so rated by one such organization if it alone has rated the
security), (ii) issued by an issuer with comparable short-term obligations that are rated in one of the two highest rating
categories, or (iii) if unrated, determined to be comparable to such securities. LB Money Market Fund may not invest more than
the greater of 1% of its total assets or $1 million in "second tier" eligible securities of any single issuer.

CONVERSION TO FEDERAL FUNDS

It is LB Money Market Fund's policy to be as fully invested as possible so that maximum interest may be earned on money
market instruments in the Fund's portfolio. To that end, all payments from investors must be in federal funds or be converted into
federal funds when deposited to State Street Bank' account at the Boston Federal Reserve Bank. This conversion must be made before
shares are purchased. State Street Bank will act as the investor's agent in depositing checks and converting them to federal
funds. State Street will convert the funds and enter the investor's order for shares within two days of receipt of the check.

REDEEMING SHARES

Shares may be redeemed with requests made:

- in writing;
- through Redeem-by-Phone; or
- through the systematic withdrawal plan.

All methods of redemption are described in the Funds' prospectus under "Redeeming Shares".

TAX STATUS

THE FUNDS' TAX STATUS

The Funds expect to pay no federal income tax because they intend to meet requirements of Subchapter M of the Internal
Revenue Code applicable to regulated investment companies and to receive the special tax treatment afforded to such companies. To
qualify for this treatment, each Fund must, among other requirements:

- derive at least 90% of its gross income from dividends, interest, gains from the sale of securities, and certain
other investments;

- invest in securities within certain statutory limits; and

- distribute at least 90% of its ordinary income to shareholders.

It is each Fund's policy to distribute substantially all of its income on a timely basis, including any net realized gains on
investments each year.

To avoid payment of a 4% excise tax, each Fund is also generally required to distribute to shareholders at least 98% of its
ordinary income earned during the calendar year and 98% of its net capital gains realized during the 12-month period ending
October 31.

SHAREHOLDERS' TAX STATUS

Information on a shareholder's tax status is described in the Fund's prospectus under "Taxes."

CAPITAL GAINS

While the Funds do not intend to engage in short-term trading, they may dispose of securities held for only a short time if
Thrivent Investment Mgt. believes it to be advisable. Such changes may result in the realization of capital gains. Each Fund
distributes its realized gains in accordance with federal tax regulations. Distributions from any net realized capital gains will
usually be declared in December.

GENERAL INFORMATION

The Lutheran Brotherhood Family of Funds, a business trust organized under the laws of the State of Delaware, was established
pursuant to a Master Trust Agreement dated July 15, 1993. The Trust is authorized to issue shares of beneficial interest, par
value $.001 per share, divisible into an indefinite number of different series and classes and operates as a "series company" as
provided by Rule 18f-2 under the 1940 Act. Currently, 11 series of the Trust exist and each series is authorized to issue three
classes of shares: Class A, Class B and Institutional Class shares. Effective October 31, 1997, all of the outstanding shares of
the Funds were redesignated as Class A shares and, immediately thereafter, shares held by Lutheran institutions and church
organizations with accounts of at least $100,000 were automatically converted to Institutional Class shares. The attributes of the
various classes of shares are more fully described in their respective prospectus. The interests of investors in the various
series of the Trust will be separate and distinct.

The assets received by the Trust from the issue and sale of shares of a Fund and all income, earnings, profits and proceeds
thereof, subject only to the rights of creditors, are specially allocated to each class of such Fund and constitute the underlying
assets of such Fund. The underlying assets of such Fund are required to be segregated on the books of account, and are charged
with the expenses in respect of each class of the Fund and with a share of the general expenses of the Trust. Under the Trust's
Multiple Class Expense Allocation Plan adopted under Rule 18f-3 of the 1940 Act, expenses are allocated as follows:

(1) advisory fees, custodial fees and other expenses relating to the
management of the Fund's assets ("Management-Related Expenses") are allocated to each class on the basis of the net asset value of
that class in relation to the net asset value of the Series;

(2) expenses of the Institutional Class shares of each Series (other than Management-Related Expenses) and shareholder
servicing fees with respect to Institutional Class shares are specially allocated to the Institutional Class; and

(3) expenses of the Class A and Class B shares of each series, other than Management-Related Expenses and Rule 12b-1 and
shareholder servicing fees with respect to Class A and Class B shares, are allocated to each such class based on the net asset
value of such class in relation to the aggregate net asset value of the Class A and Class B shares.

Upon any liquidation of a Fund, shareholders thereof are entitled to share pro rata in the net assets of each class available
for distribution.

CALCULATION OF PERFORMANCE DATA

The total return and yield of the Class A, Class B and Institutional Class shares will be calculated as set forth below.
Total return and yield are computed separately for each class of shares of the Funds. The performance data listed below covers
periods prior to the adoption of the current class designations. Shares of the Funds had no class designations until October 31,
1997, when designations were assigned based upon the sales charges, Rule 12b-1 fees and shareholder servicing fees applicable to
shares sold thereafter. The Shareholder Servicing Plans became effective on October 31, 1997, for Class A and Class B shares, and
on October 31, 1999, for Institutional Class shares. Total return and yield performance data for periods prior to October 31,
1997, have been restated to reflect the revised initial sales charge schedule for the Class A shares and the contingent deferred
sales charge for the Class B shares that became effective on that date. However, the total return and yield performance data have
not been restated to reflect Rule 12b-1 fees for the Class B shares and shareholder servicing fees, which will adversely affect
performance for the Class A and B shares after October 31, 1997, and the Institutional Class shares after October 31, 1999.

Performance data after October 31, 1997 reflects Rule 12b-1 fees, shareholder servicing fees and sales charges, where
applicable, as follows:

Class Rule 12b-1 Shareholder Servicing Fee Sales Charge
------------------ ------------------------------- ---------------------------------- -------------------------------------
A None .25% of average daily net assets Initial sales charge up to 5.5% for
equity Funds and 4.5% for fixed
income Funds, depending on amount
of investment (1)
------------------ ------------------------------- ---------------------------------- -------------------------------------
------------------ ------------------------------- ---------------------------------- -------------------------------------
B .75% of average daily net .25% of average daily net assets 1- and 5-year periods reflect a 5%
assets (1)(2) and 1% contingent deferred sales
charge, respectively (1)
------------------ ------------------------------- ---------------------------------- -------------------------------------
------------------ ------------------------------- ---------------------------------- -------------------------------------
Institutional None None (3) None
------------------ ------------------------------- ---------------------------------- -------------------------------------

(1) LB Limited Maturity Bond Fund and LB Money Market Fund are not subject to Rule 12b-1 fees or sales charges.
(2) Class B shares convert automatically to Class A shares after five years.
(3) The Institutional Class shareholder servicing fee became effective October 31, 1999. However, as of March 1, 2003, the
investment adviser voluntarily waived the .15% fee. This temporary waiver may be discontinued at any time.

Calculations of performance data for all Funds in this section reflect the subsidization by Fund affiliates of fees and
expenses relating to the Fund during the subject period. In the absence of such subsidization actual performance would be lower.

TOTAL RETURN

Average annual total return is computed by determining the average annual compounded rates of return over the designated
periods that, if applied to the initial amount invested would produce the ending redeemable value, according to the following
formula:

P(1+T)^(n) = ERV

Where: P = a hypothetical initial payment of $1,000

T = average annual total return

n = number of years

ERV = ending redeemable value at the end of the designated period assuming a hypothetical
$1,000 payment made at the beginning of the designated period

^ = raised to the power of

The calculation is based on the further assumptions that the maximum initial sales charge applicable to the investment is
deducted, and that all dividends and distributions by the Fund are reinvested at net asset value on the reinvestment dates during
the periods. All accrued expenses are also taken into account as described later herein.

Average annual total return after taxes on distributions is computed by determining the average annual compounded rates
of return (after taxes on distributions) over the designated periods that, if applied to the initial amount invested would produce
the ending redeemable value, according to the following formula:

P(1+T)^(n) = ATVd

Where: P = a hypothetical initial payment of $1,000

T = average annual total return (after taxes on
distributions)

n = number of years

ATVd = ending redeemable value, after taxes on fund distributions but not after taxes on
redemption, at the end of the designated period assuming a hypothetical $1,000 payment made at
the beginning of the designated period

^ = raised to the power of

P(1+T)^(n) = ATVdr

Where: P = a hypothetical initial payment of $1,000

T = average annual total return

n = number of years

ATVdr = ending redeemable value, after taxes on fund distributions and redemption, at the end of the
designated period assuming a hypothetical $1,000 payment made at the beginning of the
designated period

^ = raised to the power of

YIELD

Yield is computed by dividing the net investment income per share earned during a recent month or other specified 30-day
period by the applicable maximum offering price per share on the last day of the period and annualizing the result, according to
the following formula:

Yield = 2[(((a-b)/cd) + 1)^6 - 1]

Where:

a = dividend and interest earned during the period

b = expenses accrued for the period (net of voluntary expense reductions by the investment adviser)

c = the average daily number of shares outstanding during the period that were entitled to receive dividends

d = the maximum offering price per share on the last day of the period

To calculate interest earned (for the purpose of "a" above) on debt obligations, a Fund computes the yield to maturity of
each obligation held by a Fund based on the market value of the obligation (including actual accrued interest) at the close of the
last business day of the preceding period, or, with respect to obligations purchased during the period, the purchase price (plus
actual accrued interest). The yield to maturity is then divided by 360 and the quotient is multiplied by the market value of the
obligation (including actual accrued interest) to determine the interest income on the obligation for each day of the period that
the obligation is in the portfolio. Dividend income is recognized daily based on published rates.

In the case of a tax-exempt obligation issued without original issue discount and having a current market discount, the
coupon rate of interest is used in lieu of the yield to maturity. Where, in the case of a tax-exempt obligation with original
issue discount, the discount based on the current market value exceeds the then-remaining portion of original issue discount
(market discount), the yield to maturity is the imputed rate based on the original issue discount calculation. Where, in the case
of a tax-exempt obligation with original issue discount, the discount based on the current market value is less than the
then-remaining portion of original issue discount (market premium), the yield to maturity is based on the market value. Dividend
income is recognized daily based on published rates.

With respect to the treatment of discount and premium on mortgage or other receivables-backed obligations which are expected
to be subject to monthly payments of principal and interest ("paydowns"), a Fund accounts for gain or loss attributable to actual
monthly paydowns as a realized capital gain or loss during the period. Each Fund has elected not to amortize discount or premium
on such securities.

Undeclared earned income, computed in accordance with generally accepted accounting principles, may be subtracted from the
maximum offering price. Undeclared earned income is the net investment income that, at the end of the base period, has not been
declared as a dividend, but is reasonably expected to be declared as a dividend shortly thereafter. The maximum offering price
includes, as applicable, a maximum sales charge of 4.0%.

All accrued expenses are taken into account as described later herein.

Yield information is useful in reviewing a Fund's performance. However, because yields fluctuate, such information cannot
necessarily be used to compare an investment in a Fund's shares with bank deposits, savings accounts and similar investment
alternatives which are insured and/or often provide an agreed or guaranteed fixed yield for a stated period of time. Shareholders
should remember that yield is a function of the kind and quality of the instruments in the Fund's portfolio, portfolio maturity
and operating expenses and market conditions.

TAX EQUIVALENT YIELD

LB Municipal Bond Fund may quote its tax equivalent yield. LB Municipal Bond Fund's tax equivalent yield is computed by
dividing that portion of such Fund's yield (computed as described under "Yield" above) which is tax-exempt, by the complement of
the combined federal and state maximum effective marginal rate and adding the result to that portion, if any, of the yield of such
Fund that is not tax-exempt. The complement, for example, of a tax rate of 31% is 69%, that is 1.00 - 0.31 = 0.69.

The tables below present the average annual returns for all Funds except LB Money Market Fund; the yields for LB High Yield
Fund, LB Income Fund, and LB Municipal Bond Fund; and the tax-equivalent yield for LB Municipal Bond Fund of the Class A, Class B,
and Institutional Class shares for the indicated periods ended October 31, 2002. The tables reflect the revised initial sales
charge schedule for the Class A shares and the contingent deferred sales charge for Class B shares effective October 31, 1997.
The tables do not reflect the shareholder servicing fee applicable to the Class A and Class B shares for periods prior to October
31, 1997 and applicable to the Institutional Class shares for periods prior to October 31, 1999.

CLASS A PERFORMANCE
Current
SEC Average Annual Total Returns as of 10/31/02 Date
Yield --------------------------------------------- of
Fund 10/31/02 1-Year 5-Years 10-Years Inception Inception
-------------------------- -------- ------ ------- -------- --------- ---------
LB Opportunity Growth Fund N/A -24.00% -10.55% N/A 2.09% 01/08/93
LB Mid Cap Growth Fund N/A -16.80% 1.92% N/A 3.87% 05/30/97
LB World Growth Fund N/A -14.51% -4.37% N/A -0.57% 09/05/95
LB Growth Fund N/A -21.23% N/A N/A -18.43% 10/29/99
LB Fund N/A -17.49% -2.33% 6.35% N/A 1 06/02/70
LB Value Fund N/A -17.22% N/A N/A -9.54% 10/29/99
LB High Yield Fund 10.01% -9.91% -5.12% 3.13% N/A 1 04/03/87
LB Income Fund 4.26% 0.25% 5.32% 6.04% N/A 1 06/01/72
LB Municipal Bond Fund 3.06% 2 4.91% 5.75% 6.60% N/A 1 12/03/76
LB Limited Maturity Bond Fund 2.66% 2.51% N/A N/A 6.42% 10/29/99
----------------
1 Because the Fund has been effective for more than 10 years, performance since inception is not shown.

2 Tax equivalent yields for LB Municipal Bond Fund in various tax brackets would be as follows:

Tax Bracket: 38.6% 35% 30% 27% 15%
Tax Equivalent Yield: 4.98% 4.71% 4.37% 4.19% 3.60%

CLASS B PERFORMANCE
(from creation of Class B shares on 10/31/97)

Current Total Returns as of 10/31/02
SEC --------------------------------------------------------------
Yield 1-Year 1-Year 5-Years 5-Years Inception Inception
Fund 10/31/02 (If Held) (If Redeemed) (If Held) (If Redeemed) of Class B of Class B
(If Held) (If Redeemed)
-------------------------- -------- --------- ------------- --------- ------------- --------- -----------
LB Opportunity Growth Fund N/A -24.62% -27.63% -11.20% -11.20% -11.20% -11.20%
LB Mid Cap Growth Fund N/A -17.45% -20.75% 1.15% 1.15% 1.15% 1.15%
LB World Growth Fund N/A -15.20% -18.59% -5.07% -5.07% -5.07% -5.07%
LB Growth Fund N/A -21.82% -24.95% N/A N/A -19.04% -19.58%
LB Fund N/A -18.11% -21.39% -3.05% -3.05% -3.05% -3.05%
LB Value Fund N/A -17.79% -21.08% N/A N/A -10.20% -10.80%
LB High Yield Fund 9.64% -10.58% -13.82% -5.79% -5.79% -5.79% -5.79%
LB Income Fund 3.66% -0.49% -4.32% 4.53% 4.53% 4.53% 4.53%
LB Municipal Bond Fund 2.41% 1 4.15% 0.15% 4.97% 4.97% 4.97% 4.97%
LB Limited Maturity Bond Fund 2.66% 2.51% N/A N/A N/A 6.42% N/A
----------------
1 Tax equivalent yields for LB Municipal Bond Fund in various tax brackets would be as follows:

Tax Bracket: 38.6% 35% 30% 27% 15%
Tax Equivalent Yield: 3.93% 3.71% 3.44% 3.30% 2.84%

INSTITUTIONAL CLASS PERFORMANCE
(from creation of Institutional Class shares on 10/31/97)

Current
SEC Total Returns as of 10/31/02
Yield ------------------------------------------
Fund 10/31/02 1-Year 5-Year Inception
-------------------------- -------- ------ --------- ----------
LB Opportunity Growth Fund N/A -23.42% -10.08% -10.08%
LB Mid Cap Growth Fund N/A -16.04% 2.50% 2.50%
LB World Growth Fund N/A -13.76% -3.80% -3.80%
LB Growth Fund N/A -20.17% N/A -17.59%
LB Fund N/A -17.19% -2.04% -2.04%
LB Value Fund N/A -16.51% N/A -8.85%
LB High Yield Fund 10.85% -9.60% -4.85% -4.85%
LB Income Fund 4.74% 0.65% 5.61% 5.61%
LB Municipal Bond Fund 3.37% 1 5.08% 5.96% 5.96%
LB Limited Maturity Bond Fund 3.01% 2.77% N/A 6.69%

----------------
1 Tax equivalent yields for LB Municipal Bond Fund in various tax brackets would be as follows:

Tax Bracket: 38.6% 35% 30% 27% 15%
Tax Equivalent Yield: 5.49% 5.18% 4.81% 4.62% 3.96%

AFTER TAX PERFORMANCE
Class A

After Tax on After Tax on distributions
distributions and redemptions
Since Since
1 Year 5 Year 10 Year Inception 1 Year 5 Year 10 Year Inception
LB Opportunity Growth Fund (27.01) (11.73) N/A 0.23 (16.58) (8.40) N/A 1.09
LB Mid Cap Growth Fund (20.15) (0.09) N/A 1.96 (12.37) 0.55 N/A 2.18
LB World Growth Fund (17.92) (5.68) N/A (1.58) (11.00) (3.82) N/A (0.77)
LB Growth Fund (24.37) N/A N/A (19.53) (14.96) N/A N/A (14.87)
LB Fund (20.82) (4.74) 3.76 N/A (12.75) (2.08) 4.47 N/A
LB Value Fund (20.60) N/A N/A (10.81) (12.57) N/A N/A (8.40)
LB High Yield Fund (17.01) (9.88) (1.31) N/A (8.13) (6.04) 0.51 N/A
LB Income Fund (5.46) 2.10 2.94 N/A (2.30) 2.36 3.12 N/A
LB Muni Fund 0.72 4.89 6.03 N/A 2.16 4.89 5.92 N/A
LB Limited Maturity Fund 0.35 N/A N/A 4.13 1.50 N/A N/A 4.00
Money Market 0.65 2.37 2.35 N/A 0.65 2.37 2.35 N/A

Class B

After Tax on After Tax on distributions
distributions and redemptions
Since Since
1 Year 5 Year 10 Year Inception 1 Year 5 Year 10 Year Inception
LB Opportunity Growth Fund (27.63) (11.66) N/A (11.65) (16.97) (8.34) N/A (8.34)
LB Mid Cap Growth Fund (20.75) (0.05) N/A (0.05) (12.74) 0.61 N/A 0.61
LB World Growth Fund (18.59) (5.61) N/A (5.61) (11.42) (3.75) N/A (3.75)
LB Growth Fund (24.95) N/A N/A 19.58) (15.32) N/A N/A (14.91)
LB Fund (21.39) (4.62) N/A (4.62) (13.13) (1.96) N/A (1.96)
LB Value Fund (21.08) N/A N/A (10.80) (12.94) N/A N/A (8.43)
LB High Yield Fund (17.15) (9.54) N/A (9.54) (8.29) (5.85) N/A (5.85)
LB Income Fund (5.83) 2.45 N/A 2.45 (2.66) 2.58 N/A 2.58
LB Muni Fund 0.15 4.97 N/A 4.97 1.59 4.83 N/A 4.83
LB Limited Maturity Fund 0.35 N/A N/A 4.13 1.50 N/A N/A 4.00
Money Market 0.65 2.37 N/A 2.37 0.65 2.37 N/A 2.37

Institutional Class

After Tax on After Tax on distributions
distributions and redemptions
Since Since
1 Year 5 Year 10 Year Inception 1 Year 5 Year 10 Year Inception
LB Opportunity Growth Fund (23.42) (10.54) N/A (10.54) (14.38) (7.56) N/A (7.56)
LB Mid Cap Growth Fund (16.04) 1.30 N/A 1.30 (9.85) 1.67 N/A 1.67
LB World Growth Fund (13.76) (4.36) N/A (4.36) (8.45) (2.81) N/A (2.81)
LB Growth Fund (20.17) N/A N/A (17.59) (12.39) N/A N/A (13.47)
LB Fund (17.37) (3.76) N/A (3.76) (10.52) (1.27) N/A (1.27)
LB Value Fund (16.82) N/A N/A (9.04) (10.09) N/A N/A (7.00)
LB High Yield Fund (13.34) (8.99) N/A (8.99) (5.69) (5.32) N/A (5.32)
LB Income Fund (1.27) 3.11 N/A 3.11 0.38 3.23 N/A 3.23
LB Muni Fund 5.08 5.96 N/A 5.96 4.97 5.82 N/A 5.82
LB Limited Maturity Fund 0.48 N/A N/A 4.29 1.65 N/A N/A 4.16
Money Market 0.89 2.58 N/A 2.58 0.89 2.58 N/A 2.58

YIELD - MONEY MARKET FUND

When LB Money Market Fund quotes a "current annualized" yield, it is based on a specified recent seven calendar-day period.
It is computed by (1) determining the net change, exclusive of capital changes, in the value of a hypothetical preexisting account
having a balance of one share at the beginning of the period, (2) dividing the net change in account value by the value of the
account at the beginning of the base period to obtain the base return, then (3) multiplying the base period by 52.14 (365 divided
by 7). The resulting yield figure is carried to the nearest hundredth of one percent.

The calculation includes (1) the value of additional shares purchased with dividends on the original share, and dividends
declared on both the original share and any such additional shares, and (2) all fees charge to all shareholder accounts, in
proportion to the length of the base period and the Trust's average account size.

The capital changes excluded from the calculation are realized capital gains and losses from the sale of securities and
unrealized appreciation and depreciation. The Fund's effective (compounded) yield will be computed by dividing the seven-day
annualized yield as defined above by 365, adding 1 to the quotient, raising the sum to the 365th power, and subtracting 1 from the
result.

Current and effective yields fluctuate daily and will vary with factors such as interest rates and the quality, length of
maturities, and type of investments in the portfolio.

Class Institutional
A & B Class
----- -----
Yield For 7-day Period Ended 10/31/02 0.91% 1.39%

Effective Yield For 7-day Period Ended 10/31/02 0.91% 1.40%

ACCRUED EXPENSES

Accrued expenses include all recurring expenses that are charged to all shareholder accounts in proportion to the length of
the base period. The average annual total return and yield results take sales charges, if applicable, into account, although the
results do not take into account recurring and nonrecurring charges for optional services which only certain shareholders elect
and which involve nominal fees.

Accrued expenses include the subsidization by Fund affiliates of fees or expenses relating to a Fund, during the subject
period.

NONSTANDARDIZED TOTAL RETURN

A Fund may provide the above described average annual total return results for periods which end no earlier than the most
recent calendar quarter end and which begin one, five and ten years before such quarter end and at the commencement of such Fund's
operations. In addition, a Fund may provide nonstandardized total return results for differing periods, such as for the most
recent six months, and/or without taking sales charges into account. Such nonstandardized total return is computed as otherwise
described under "Total Return" except that the result may or may not be annualized, and as noted any applicable sales charge may
not be taken into account and therefore not deducted from the hypothetical initial payment of $1,000.

DESCRIPTION OF DEBT RATINGS

Moody's Investors Service, Inc. describes grades of corporate debt securities and "Prime-1" and "Prime-2" commercial paper as
follows:

BONDS:

Aaa Bonds that are rated Aaa are judged to be of the best quality.
They carry the smallest degree of investment risk and are generally
referred to as "gilt edged". Interest payments are protected by a
large or by an exceptionally stable margin and principal is secure.
While the various protective elements are likely to change, such
changes as can be visualized are most unlikely to impair the
fundamentally strong position of such issues.

Aa Bonds that are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are
generally known as high grade bonds. They are rated lower than the
best bonds because margins of protection may not be as large as in
Aaa securities or fluctuation of protective elements may be of
greater amplitude or there may be other elements present which make
the long term risks appear somewhat larger than in Aaa securities.

A Bonds which are rated A possess many favorable investment
attributes and are to be considered as upper medium grade
obligations. Factors giving security to principal and interest are
considered adequate but elements may be present which suggest a
susceptibility to impairment sometime in the future.

Baa Bonds that are rated Baa are considered as medium grade
obligations, i.e., they are neither highly protected nor poorly
secured. Interest payments and principal security appear adequate
for the present but certain protective elements may be lacking or
may be characteristically unreliable over any great length of time.
Such bonds lack outstanding investment characteristics and in fact
have speculative characteristics as well.

Ba Bonds that are rated Ba are judged to have speculative elements;
their future cannot be considered as well assured. Often the
protection of interest and principal payments may be very moderate
and thereby not well safeguarded during both good and bad times
over the future. Uncertainty of position characterizes bonds in
this class.

B Bonds tat are rated B generally lack characteristics of the
desirable investment. Assurance of interest and principal payments
or of maintenance of other terms of the contract over any long
period of time may be small.

Caa Bonds that are rated Caa are of poor standing. Such issues may be
in default or there may be present elements of danger with respect
to principal or interest.

Ca Bonds that are rated Ca represent obligations which are
speculative in a high degree. Such issues are often in default or
have other marked shortcomings.

C Bonds that are rated C are the lowest rated class of bonds and
issues so rated can be regarded as having extremely poor prospects
of ever attaining any real investment standing.

COMMERCIAL PAPER:

Issuers rated Prime-1 (or related supporting institutions) have a superior capacity for repayment of senior short-term
promissory obligations. Prime-1 repayment capacity will normally be evidenced by the following characteristics:

o Leading market positions in well-established industries.

o High rates of return of funds employed.

o Conservative capitalization structures with moderate reliance
on debt and ample asset protection.

o Broad margins in earnings coverage of fixed financial charges
and high internal cash generation.

o Well established access to a range of financial markets and
assured sources of alternate liquidity.

Issuers rated Prime-2 (or related supporting institutions) have a strong capacity for repayment of senior short-term
promissory obligations. This will normally be evidenced by many of the characteristics cited above but to a lesser degree. Earning
trends and coverage ratios, while sound, will be more subject to variation. Capitalization characteristics, while still
appropriate, may be more affected by external conditions. Ample alternate liquidity is maintained.

Standard & Poor's Corporation describes grades of corporate debt securities and "A" commercial paper as follows:

BONDS:

AAA Debt rated AAA has the highest rating assigned by Standard &
Poor's. Capacity to pay interest and repay principal is extremely
strong.

AA Debt rated AA has a very strong capacity to pay interest and repay
principal and differs from AAA issues only in small degree.

A Debt rated A is somewhat more susceptible to the adverse effects of
changes in circumstances and economic conditions than debt in
higher rated categories. However, the obligor's capacity to meet
its financial commitments on the obligation is still strong.

BBB Debt rated BBB exhibits adequate protection parameters, adverse
economic conditions or changing circumstances are more likely to
lead to a weakened capacity of the obligor to meet its financial
commitments on the obligation in this category than in higher rated
categories.

BB Debt rated BB is less vulnerable to nonpayment than other
speculative issues. However, it faces major ongoing uncertainties
or exposure to adverse business, financial, or economic conditions
which could lead to inadequate capacity of the obligor to meet its
financial commitments on the obligation. The BB rating category is
also used for debt subordinated to senior debt that is assigned an
actual or implied BBB-rating.

B Debt rated B is more vulnerable to nonpayment but currently has the
capacity to meet its financial commitments on the obligation.
Adverse business, financial, or economic conditions will likely
impair the obligor's capacity or willingness to meet its financial
commitments on the obligation.

The B rating category is also used for debt subordinated to senior
debt that is assigned an actual or implied BB or BB- rating.

CCC Debt rated CCC is vulnerable to nonpayment, and is dependent upon
favorable business, financial, and economic conditions for the
obligor to meet its financial commitments on the obligation. In the
event of adverse business, financial, or economic conditions, the
obligor is not likely to have the capacity to meet its financial
commitments on the obligation.

The CCC rating category is also used for debt subordinated to
senior debt that is assigned an actual or implied B or B- rating.

CC The rating CC typically is currently highly vulnerable to
nonpayment.

C The rating C typically is applied to debt subordinated to senior
debt that is assigned an actual or implied CCC- debt rating. The C
rating may be used to cover a situation where a bankruptcy petition
has been filed or similar action has been taken but payments on the
obligation are being continued.

D Debt rated D is in payment default. The D rating category is used
when payments are not made on the date due even if the applicable
grace period has not expired, unless S&P believes that such
payments will be made during such grace period. The D rating also
will be used upon the filing of a bankruptcy petition or the taking
of similar action if payments on the obligation are jeopardized.

Provisional Ratings: The letter "p" indicates that the rating is provisional. A provisional rating assumes the successful
completion of the project financed by the debt being rated and indicates that payment of debt service requirements is largely or
entirely dependent upon the successful and timely completion of the project. This rating, however, while addressing credit quality
subsequent to completion of the project, makes no comment on the likelihood of, or the risk of default upon failure of, such
completion. The investor should exercise judgment with respect to such likelihood and risk.

Commercial Paper: Commercial paper rated A by Standard & Poor's Corporation has the following characteristics: liquidity
ratios are better than the industry average; long-term senior debt rating is "A" or better (however, in some cases a "BBB"
long-term rating may be acceptable); the issuer has access to at least two additional channels of borrowing; basic earnings and
cash flow have an upward trend with allowances made for unusual circumstances. Also, the issuer's industry typically is well
established, the issuer has a strong position within its industry and the reliability and quality of management is unquestioned.
Issuers rated A are further referred to by use of numbers 1, 2 and 3 to denote relative strength within this classification.

REPORT OF INDEPENDENT ACCOUNTANTS AND FINANCIAL STATEMENTS

The Report of Independent Accountants and financial statements in the Annual Report to Shareholders for the fiscal year ended
October 31, 2002 of the Funds are a separate report furnished with this Statement of Additional Information and are incorporated
herein by reference.

PART C

THE LUTHERAN BROTHERHOOD FAMILY OF FUNDS

OTHER INFORMATION
-----------------

Item 23. Exhibits
-------------------------------------------

(a)(1) First Amended and Restated Master Trust Agreement of the Registrant (4)

(a)(2) Form of Amendment No. 1 to First Amended and Restated Master Trust Agreement (1)

(a)(3) Form of Amendment No. 2 to First Amended and Restated Master Trust Agreement (2)

(a)(4) Form of Amendment No. 3 to First Amended and Restated Master Trust Agreement (3)

(a)(5) Amendment No. 4 to First Amended and Restated Master Trust Agreement (7)

(a)(6) Amendment No. 5 to First Amended and Restated Master Trust Agreement (8)

(a)(7) Amendment No. 6 to First Amended and Restated Master Trust Agreement **

(b) By-Laws of the Registrant (4)

(d)(1) Form of Master Advisory Contract between the Registrant and Lutheran Brotherhood Research Corp. (4)

(d)(2) Form of Letter Amendment to Master Advisory Contract (8)

(d)(3) Form of Investment Subadvisory Agreement between Lutheran Brotherhood Research Corp. and T.Rowe Price International,
Inc. (12)

(d)(4) Amendment No. 1 to Master Advisory Contract (7)

(d)(5) Amendment No. 2 to Master Advisory Contract (7)

(d)(6) Form of Assignment of Advisory Agreement to Thrivent Investment Management Inc. (14)

(e) Distribution Contract between Thrivent Investment Management Inc. and The Lutheran Brotherhood Family of Funds (14)

(f) Not applicable

(g)(1) Form of Custodian Contract between the Registrant and State Street Bank and Trust Company (4)

(g)(2) Form of Amendment to Custodian Contract (2)(8)(11)

(g)(3) Form of Amended and Restated Transfer Agency Agreement between the Registrant and Thrivent Financial Investor Services
Inc. ("Thrivent Financial Investor Services") (3)

(g)(4) Form of Letter Amendment to Amended and Restated Transfer Agency Agreement (8)

(g)(5) Administration Contract Between The Lutheran Brotherhood Family of Funds and Thrivent Financial Investor Services (1)

(g)(6) Form of Amendment to Administration Contract (1)(2)(8)

(h) Form of Letter Agreement for Line of Credit (10)

(i) Opinion and consent of counsel (**)

(j) Consent of Independent Accountants (**)

(k) Not Applicable

(l)(1) Subscription and Investment Letter with respect to each of Lutheran Brotherhood Opportunity Growth Fund, Lutheran
Brotherhood Fund, Lutheran Brotherhood High Yield Fund, Lutheran Brotherhood Income Fund, Lutheran Brotherhood Municipal
Bond Fund and Lutheran Brotherhood Money Market Fund (4)

(l)(2) Form of Subscription and Investment Letter with respect to Lutheran Brotherhood World Growth Fund (1)

(l)(3) Form of Subscription and Investment Letter with respect to Lutheran Brotherhood Mid Cap Growth Fund (2)

(l)(4) Form of Subscription and Investment Letter with respect to Lutheran Brotherhood Growth Fund, Lutheran Brotherhood Value
Fund, and Lutheran Brotherhood Limited Maturity Bond Fund (8)

(m)(1) Plan of Distribution Pursuant to Rule 12b-1 with respect to the Class B Shares (3)

(m)(2) Form of Letter Amendment to Plan of Distribution Pursuant to Rule 12b-1 with respect to the Class B Shares (8)

(m)(3) Shareholder Servicing Plan with respect to the Class A Shares (3)

(m)(4) Form of Letter Amendment to Shareholder Servicing Plan with respect to the Class A Shares (8)

(m)(5) Shareholder Servicing Plan with respect to the Class B Shares (3)

(m)(6) Form of Letter Amendment to Shareholder Servicing Plan with respect to the Class B Shares (8)

(m)(7) Shareholder Servicing Plan with respect to the Institutional Class Shares (9)

(n) Form of Amended and Restated Multiple Class Expense Allocation Plan Adopted Pursuant to Rule 18f-3 (10)

(o) (Reserved)

(p)(1) Registrant's Code of Ethics (12)

(p)(2) Subadviser's Code of Ethics (13)

(q)(1) Powers of Attorney for:
Herbert F. Eggerding, Jr.,
Noel K. Estenson, Jodi L. Harpstead, Connie M. Levi, and Bruce
J. Nicholson (7)

(q)(2) Powers of Attorney for: Pamela J. Moret and Charles D. Gariboldi(14)

(q)(3) Power of Attorney for John O. Gilbert**

--------------------
Filed as part of the Registration Statement as noted below and incorporated herein by reference:

(1) Incorporated by reference from Post Effective Amendment No. 55 to the registration statement of The Lutheran Brotherhood
Family of Funds, file no. 2-25984, filed June 19, 1995.
(2) Incorporated by reference from Post Effective Amendment No. 58 to the registration statement of The Lutheran Brotherhood
Family of Funds, file no. 2-25984, filed March 10, 1997.
(3) Incorporated by reference from Post Effective Amendment No. 60 to the registration statement of The Lutheran Brotherhood
Family of Funds, file no. 2-25984, filed October 28, 1997.
(4) Incorporated by reference from Post Effective Amendment No. 61 to the registration statement of The Lutheran Brotherhood
Family of Funds, file no. 2-25984, filed December 31, 1997.
(5) Incorporated by reference from Post Effective Amendment No. 62 to the registration statement of The Lutheran Brotherhood
Family of Funds, file no. 2-25984, filed March 16, 1998.
(6) Incorporated by reference from Post Effective Amendment No. 64 to the registration statement of The Lutheran Brotherhood
Family of Funds, file no. 2-25984, filed October 23, 1998.
(7) Incorporated by reference from Post Effective Amendment No. 65 to the registration statement of The Lutheran Brotherhood
Family of Funds, file no. 2-25984, filed December 21, 1998.
(8) Incorporated by reference from Post Effective Amendment No. 66 to the registration statement of The Lutheran Brotherhood
Family of Funds, file no. 2-25984, filed August 5, 1999.
(9) Incorporated by reference from Post Effective Amendment No. 67 to the registration statement of The Lutheran Brotherhood
Family of Funds, file no. 2-25984, filed October 14, 1999.
(10) Incorporated by reference from Post Effective Amendment No. 69 to the registration statement of The Lutheran Brotherhood
Family of Funds, file no. 2-25984, filed December 17, 1999.
(11) Incorporated by reference from Post Effective Amendment No. 70 to the registration statement of The Lutheran Brotherhood
Family of Funds, file no. 2-25984, filed October 27, 2000.
(12) Incorporated by reference from Post Effective Amendment No. 27 to the registration statement of LB Series Fund, Inc.,
file no. 33-3677, filed April 30, 2002.
(13) Incorporated by reference from Post Effective Amendment No. 8 to the registration statement of T. Rowe Price Corporate
Income Fund, Inc., file no. 811-07353, filed September 27, 2002.
(14) Incorporated by reference from Post Effective Amendment No. 73 to the registration statement of The Lutheran Brotherhood
Family of Funds, file no. 2-25984, filed December 27, 2002.
(**) Filed herewith.

Item 24. Persons Controlled by or under Common Control with Registrant

None.

Item 25. Indemnification

Under Article VI of the Registrant's Master Trust Agreement each of its Trustees and officers or persons serving in such
capacity with another entity at the request of the Registrant ("Covered Person") shall be indemnified against all liabilities,
including, but not limited to, amounts paid in satisfaction of judgments, in compromises or as fines or penalties, and expenses,
including reasonable legal and accounting fees, in connection with the defense or disposition of any action, suit or other
proceeding, whether civil or criminal, before any court or administrative or legislative body, in which such Covered Person may be
or may have been involved as a party or otherwise or with which such Covered Person may be or may have been threatened, while in
office or thereafter, by reason of being or having been such a Trustee or officer, director or trustee, except with respect to any
matter as to which it has been determined that such Covered Person had acted with willful misfeasance, bad faith, gross negligence
or reckless disregard of the duties involved in the conduct of such Covered Person's office (such conduct referred to hereafter as
"Disabling Conduct"). A determination that the Covered Person is entitled to indemnification may be made by (i) a final decision
on the merits by a court or other body before which the proceeding was brought that the person to be indemnified was not liable by
reason of Disabling Conduct, (ii) dismissal of a court action or an administrative proceeding against a Covered Person for
insufficiency of evidence of Disabling Conduct, or (iii) a reasonable determination, based upon a review of the facts, that the
indemnitee was not liable by reason of Disabling Conduct by (a) a vote of a majority of a quorum of Trustees who are neither
"interested persons" of the Registrant as defined in section 2(a)(19) of the 1940 Act nor parties to the proceeding, or (b) an
independent legal counsel in a written opinion.

Under the Distribution Agreement between the Registrant and Thrivent Investment Management Inc. ("Thrivent Investment
Mgt."), the Registrant's distributor, the Registrant has agreed to indemnify, defend and hold Thrivent Investment Mgt., its
officers, directors, employees and agents and any person who controls Thrivent Investment Mgt. free and harmless from and against
any loss, claim, damage, liability and expense incurred by any of them arising out of or based upon any untrue or alleged untrue
statement of material fact, or the omission or alleged omission to state a material fact necessary to make the statements made not
misleading, in a Registration Statement, the Prospectus or Statement of Additional Information of the Registrant, or any amendment
or supplement thereto, unless such statement or omission was made in reliance upon written information furnished by Thrivent
Investment Mgt.

Under the Amended and Restated Transfer Agent and Service Agreement between the Registrant and Thrivent Financial
Investor Services Inc. ("Thrivent Financial Investor Services"), the Registrant has agreed, provided that Thrivent Financial
Investor Services has at all relevant times acted in good faith and without negligence or willful misconduct, to indemnify and
hold Thrivent Financial Investor Services harmless from and against any and all losses, damages, costs, charges, attorneys fees,
payments, expenses and liability arising out of or attributable to (a) all actions of Thrivent Financial Investor Services or its
agents or subcontractors required to be taken under the Transfer Agency and Service Agreement or which arise out of the
Registrant's lack of good faith, negligence, or willful misconduct or the breach of any representation or warranty of the
Registrant under the Transfer Agency and Service Agreement, (c) the reliance on or use by Thrivent Financial Investor Services or
its agents or subcontractors of information, records or documents which are furnished by or on behalf of Registrant, (d) the
reliance on or the carrying out by Thrivent Financial Investor Services or its agents or subcontractors of any instructions or
requests by Registrant, or (e) the offer or sale of shares of the Registrant unknown by Thrivent Financial Investor Services to be
in violation of law.

Insofar as indemnification by the Registrant for liabilities arising under the Securities Act of 1933 may be permitted
to trustees, officers, underwriters and controlling persons of the Registrant, pursuant to Article VI of the Registrant's Master
Trust Agreement, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a trustee,
officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted against
the Registrant by such trustee, officer or controlling person in connection with the securities being registered, the Registrant
will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question of whether such indemnification by it is against public policy as expressed in the Act and will be
governed by the final adjudication of such issue.

Item 26. Business and Other Connections of Investment Adviser.

Thrivent Investment Mgt. is the investment adviser of the Funds. Thrivent Investment Mgt. also acts as investment adviser to
The AAL Mutual Funds. The business and other connections of the directors and officers of Thrivent Investment Mgt. are set forth
in Form ADV currently on file with the Securities and Exchange Commission (File No. 801-29618).

The business and other connections of the officers and directors of T. Rowe Price International, Inc. ("Subadviser") are set
forth in the Form ADV of Subadviser currently on file with the Securities and Exchange Commission (File No. 801-14713)

Item 27. Principal Underwriters

(a) Thrivent Investment Mgt. also serves as principal underwriter and investment adviser for The AAL Mutual Funds and as
principal underwriter for LB Series Fund, Inc.

(b) The directors and officers of Thrivent Investment Mgt. are listed below. Unless otherwise indicated, their principal
business address is 625 Fourth Avenue South, Minneapolis, Minnesota 55415.

Name and Principal Positions and Offices Positions and Offices
Business Address with Underwriter with Fund
------------------ --------------------- ---------------------

John O. Gilbert Director and Chairman N/A

Bruce J. Nicholson Director and President Trustee

Jon M. Stellmacher Director and Senior Vice President N/A

Lawrence W. Stranghoener Director and Senior Vice President N/A

Woodrow E. Eno Director, Senior Vice President and Secretary N/A

Pamela J. Moret Director and Senior Vice President President

James A. Thomsen Director and Senior Vice President N/A

James H. Abitz Senior Vice President and Chief Investment Vice President
222 West College Ave. Officer
Appleton, Wisconsin 54919-0007

David C. Francis Vice President N/A
222 West College Ave.
Appleton, Wisconsin 54919-0007

Charles D. Gariboldi Vice President Treasurer and Principal
Accounting Officer

Reginald L. Pfeifer Vice President N/A
222 West College Ave.
Appleton, Wisconsin 54919-0007

Robert G. Same Vice President and Chief Compliance Officer N/A
222 West College Ave.
Appleton, Wisconsin 54919-0007

Brian W. Picard Vice President and Deputy Chief Compliance N/A
222 West College Ave. Officer
Appleton, Wisconsin 54919-0007

James E. Nelson Vice President and Assistant Secretary N/A

Jefrey R. Kargus Vice Presidemt and Chief Financial Officer N/A
4321 North Ballard Road
Appleton, Wisconsin 54919-0001

Michael J. Mevis Vice President N/A
222 West College Ave.
Appleton, Wisconsin 54919-0007

Frederick P. Johnson Vice President Vice President

Marnie Loomans-Theucks Vice President N/A
4321 North Ballard Road
Appleton, Wisconsin 54919-0001

Brenda J. Pederson Vice President Vice President

David Christianson Vice President N/A

Thomas R. Mischka Vice President N/A
4321 North Ballard Road
Appleton, Wisconsin 54919-0001

Brett L. Agnew Assistant Secretary N/A
222 West College Ave.
Appleton, Wisconsin 54919-0007

Marlene J. Nogle Assistant Secretary Assistant Secretary

John C. Bjork Assistant Secretary Secretary

Rodney A. DeWalt Assistant Secretary N/A
222 West College Ave.
Appleton, Wisconsin 54919-0007

Peter E. Schifsky Assistant Secretary N/A

Michael Barth Assistant Vice President N/A
4321 North Ballard Road
Appleton, Wisconsin 54919-0001

Cindy R. Hedgers Assistant Vice President N/A

Lewis A. Bohannon Assistant Vice President N/A
222 West College Ave.
Appleton, Wisconsin 54919-0007

Brian J. Flanagan Assistant Vice President N/A
222 West College Ave.
Appleton, Wisconsin 54919-0007

James A. Grossman Assistant Vice President N/A
222 West College Ave.
Appleton, Wisconsin 54919-0007

Michael R. Hochholzer Assistant Vice President N/A
222 West College Ave.
Appleton, Wisconsin 54919-0007

Frederick L. Plautz Assistant Vice President N/A
222 West College Ave.
Appleton, Wisconsin 54919-0007

Kevin A. Schmitting Assistant Vice President N/A
222 West College Ave.
Appleton, Wisconsin 54919-0007

Christopher J. Serra Assistant Vice President N/A
222 West College Ave.
Appleton, Wisconsin 54919-0007

Andrea J. Thomas Assistant Vice President N/A

Brian L. Thorkelson Assistant Vice President N/A

Scott A. Vergin Assistant Vice President N/A

Scott Lalim Assistant Vice President N/A

Janet I. Grangaard Assistant Vice President N/A

Michael G. Landreville Assistant Vice President N/A

Steven H. Lee Assistant Vice President N/A

Gail R. Onan Assistant Vice President N/A

Paul J. Ocenasek Assistant Vice President N/A

John P. Pickering Assistant Vice President N/A

Michael D. Swendsen Assistant Vice President N/A

Gregory Anderson Assistant Vice President N/A

Mark L. Simenstad Assistant Vice President N/A

Alan D. Onstad Assistant Vice President N/A

John Hintz Assistant Vice President N/A
222 West College Ave.
Appleton, Wisconsin 54919-0007

Laura Gearhart Assistant Vice President N/A
222 West College Ave.
Appleton, Wisconsin 54919-0007

Item 28. Location of Accounts and Records

The Registrant maintains the records required to be maintained by it under Rules 31a-1(a), 31a-1(b), and 31a-2(a) under the
Investment Company Act of 1940 at its principal executive offices at 625 Fourth Avenue South, Minneapolis, Minnesota 55415.
Certain records, including records relating to Registrant's shareholders and the physical possession of its securities, may be
maintained pursuant to Rule 31a-3 under the Investment Company Act of 1940 by the Registrant's transfer agent or custodian at the
following locations:

Name Address
---- -------
Thrivent Financial Investor Services Inc. 625 Fourth Avenue South
Minneapolis, Minnesota 55415

Wells Fargo Bank, N.A. Sixth and Marquette Avenue
Minneapolis, Minnesota 55402

State Street Bank and Trust Company 225 Franklin Street
Boston, Massachusetts 02110

Item 29. Management Services

Not Applicable.

Item 30. Undertakings

Not Applicable.

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, Registrant certifies
that it meets all of the requirements for effectiveness of this Amendment to its Registration Statement pursuant to Rule 485(b)
under the Securities Act of 1933 and has duly caused this amendment to its Registration Statement to be signed on its behalf by
the undersigned thereunto duly authorized, in the City of Minneapolis and State of Minnesota, on the 28th day of February, 2003.

THE LUTHERAN BROTHERHOOD
FAMILY OF FUNDS

By: /s/ John C. Bjork
-------------------------------
John C. Bjork, Secretary

Pursuant to the requirements of the Securities Act of 1933, this amendment to this registration statement has been signed
below by the following persons in the capacities indicated on the 28th day of February, 2003.

Signature Title

* President
------------------------ (Principal Executive Officer)
Pamela J. Moret

* Treasurer and Principal Accounting Officer
------------------------
Charles D. Gariboldi

* Trustee
------------------------
John O. Gilbert

* Trustee
-------------------------
Herbert F. Eggerding, Jr.

* Trustee
-------------------------
Noel K. Estenson

* Trustee
-------------------------
Jodi L. Harpstead

* Trustee
------------------------
Connie M. Levi

* Trustee
------------------------
Bruce J. Nicholson

By: /s/ John C. Bjork
----------------------------
John C. Bjork
Attorney-in-Fact Under Powers
of Attorney dated December 3,
1998, filed with Post-Effective
Amendment No. 65, and Powers of
Attorney dated December 23, 2002,
filed with Post-Effective
Amendment No. 73 and Power of Attorney
dated January 2, 2003, filed
herewith.

INDEX TO EXHIBITS

Exhibit No. Item
----------- -----------------------------------------------------
(a)(7) Amendment No. 6 to First Amended and Restated Master Trust Agreement

(i) Opinion and Consent of Counsel

(j) Consent of Independent Accountants

(q)(2) Power of Attorney for John O. Gilbert