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                                                                                     August 2007


Many investors have been concerned about the recent market volatility. However, a new source of
anxiety has crept into media coverage questioning the safety of money market funds. Mark Simenstad,
Head of Fixed Income Mutual Funds, and Bill Stouten, Fixed Income Portfolio Manager at Thrivent
Asset Management, share their views on this topic in the Q&A below.

Some recent financial media reports have suggested that investors consider abandoning their
money market funds for safety reasons. Has something changed to affect the safety and liquidity
of money market products?
Let us assure our investors that the Thrivent Money Market Fund (the Fund) continues to be managed
with very strict credit quality and diversification standards. The Fund is positioned conservatively and
has a high level of liquidity to meet shareholder needs and weather the current volatility in the credit
markets. Importantly, the Fund has no direct exposure to the subprime mortgage securities that have
been the cause of much of the market's recent unease.

Aren't money market funds supposed to be one of the safest and highly liquid investments
available outside of guaranteed products?
Indeed. In fact, Securities and Exchange Commission (SEC) regulations generally require that money
market mutual funds have at least 95% of their assets in securities with the highest rating from
independent ratings agencies such as Moody's, Standard & Poor's and Fitch. The other 5% may be
invested in securities with the second-highest rating. In both cases, strict limits are imposed on the
percent allocated to any one issuer. Thus, money market funds are highly regulated in terms of quality
and diversification.

If that's the case, what's causing the concern about money market fund safety?
What we've seen over the past few years is that in a very low interest rate environment accompanied
by below-average market volatility, some investment firms have taken on high amounts of risk in an
effort to boost returns. They have borrowed at low rates in order to invest in securities that offer higher
returns. This "leverage" magnifies returns, both up and down. Thrivent does not employ leverage in its
money market products.

The problem is that some of this leverage was used to purchase securities tied to the subprime
mortgage market, a sector that has recently begun experiencing increased late payments, foreclosures
and defaults. As these large institutional investors, including hedge funds, began to incur losses and
tried to sell their subprime mortgage related investments, they experienced difficulty finding buyers for
the securities. Potential buyers feared that they too might experience defaults or lower values. When
too few buyers exist in the market, liquidity dries up and transactions can not take place.

How this relates to the money market is that commercial paper, which is short-term debt issued by
corporations and financial institutions, represents about 50-60% of money market assets. Asset-backed
securities in turn represent about 50% of the commercial paper market. Liquidity in the commercial
paper market has been under pressure as investors shunned the entire asset-backed securities sector,
when in reality most of these securities have no problems. Potential buyers are worried that if these
securities were to default, something that has yet to happen in the commercial paper market, issuing
banks might not honor their commitments to back up the securities.
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What is interesting is that this asset-backed commercial paper is generally highly rated by the
independent rating agencies. As the name suggests, it is backed by pools of assets as well as by the
liquidity and credit support of the financial institution that issued the securities. So in reality, when
only a small portion of the mortgage-related asset-backed securities have experienced problems, many
investors were hesitant to purchase any asset-backed securities. This meant that as short-term
commercial paper matured, issuers encountered extreme difficulty in rolling it over into newly issued
paper since there were no buyers. This in turn put pressure on the entire short-term debt market,
including money market securities.

I've heard that the Federal Reserve and other foreign central banks have taken action to help
ensure the orderly functioning of the financial system. Have these actions aided the situation?
As news broke that the short-term debt market was beginning to experience problems, possibly putting
at risk corporate America's ability to finance its short-term cash needs and keep the economy running
smoothly, the Federal Reserve stepped in by injecting cash into the financial system. The Fed, as well
as the European Central Bank and the Bank of Japan, acted in a similar fashion as some large foreign
banks were also experiencing liquidity problems. The Fed also lowered the discount rate, the interest
rate at which it offers to eligible commercial banks or other depository institutions the ability to borrow
money. A decrease in the discount rate makes it cheaper for commercial banks to borrow money, thus
having the effect of increasing the supply of money in the economy.

The Fed also indicated that it would "do what it takes" to ensure that the financial system continues to
function in an orderly fashion. This reassured investors and has brought some stability back to the
markets. Some market participants are calling for the Fed to do more, such as reducing the fed funds
rate, the rate it sets for depository institution overnight lending and which has the effect of adding or
removing capital from the financial system. However, the actions taken thus far have definitely helped
restore investor confidence and improve liquidity in the short-term commercial paper market.

It sounds like the situation has improved. Are the credit markets back on stable ground?
Liquidity has definitely improved and the unwinding of the leveraged positions mentioned above
appears to be progressing in a more orderly manner. Conditions have improved in the credit markets
but we still see a few risks. There is still more unwinding of leveraged positions that needs to take
place, and both the housing and mortgage markets remain tenuous. But yes, the situation does appear
brighter than it did just a few weeks ago.

Does this mean that concerns about money market mutual funds "breaking the buck," or having
their net asset value (NAV) go below $1.00 per share, are unfounded?
While we cannot speak for other money market mutual funds, we believe that the conditions necessary
for a fund to "break the buck" are unlikely to occur. First, we have yet to see any commercial paper
defaults, though such a situation is possible. Second, given the high level of diversification within
these funds, the likelihood is small that a commercial paper security in default represented a large
enough percentage of an entire fund's portfolio to have a sufficient impact to pull the fund's NAV
below $1.00. Finally, given the potential damage to a fund company's reputation if it were to allow its
supposedly safest investment to decline in value, we believe that the fund complex would step in to
support the money market fund's NAV and ensure that its investors do not lose money. Of course this
cannot be guaranteed, but we believe the probability of such a "worst case" scenario is quite low.




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How is Thrivent's money market fund positioned? Is my money safe?
Thrivent Money Market Fund investors should feel secure in knowing that the Fund has been and
continues to be positioned conservatively, with sufficient liquidity to meet shareholder needs and to
weather continued volatility in the short-term debt market. Credit quality in the Fund remains very
high with no recent downgrades. In fact, we have no credit concerns at this time. The Fund has no
direct exposure to subprime mortgages and minimal exposure to programs that have been in the news.
We also continually monitor the portfolio and research the credit risk of each underlying investment.

Thus, while the value of the Fund's investments is not guaranteed, investors in Thrivent Money Market
Fund can take comfort in knowing that the Fund is very liquid, is conservatively positioned, and that it
continues to be managed with its shareholders' best interests in mind.

Investors seeking to gain additional insight into this complex issue might consider an August 28
CNNMoney.com article entitled, "Debunking money market fears." As always, feel free to contact
your Thrivent Financial representative for further information on Thrivent investment products and to
discuss your personal financial goals.




An investment in a money market fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation (FDIC) 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.

Investing in a mutual fund involves risks, including the possible loss of principal. The prospectus
contains more complete information on the investment objectives, risks, charges and expenses of the
investment company which investors should read and consider carefully before investing. To obtain
a prospectus contact a registered representative or visit www.thrivent.com.


Securities offered through Thrivent Investment Management Inc., 625 Fourth Avenue South,
Minneapolis, MN 55415-1665, 1-800-THRIVENT (800-847-4836) a wholly owned subsidiary of
Thrivent Financial for Lutherans. Member FINRA. Member SIPC.




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