<PAGE>
VENTURE
ADVANTUS VENTURE FUND, INC.
SEMI-ANNUAL REPORT DATED JANUARY 31, 2000 [LOGO]
ADVANTUS-Trademark-
FAMILY OF FUNDS
EQUITY
[PHOTO]
<PAGE>
ADVANTUS Venture Fund
TABLE OF CONTENTS
<TABLE>
<S> <C>
PERFORMANCE UPDATE 2
INVESTMENTS IN SECURITIES 6
STATEMENT OF ASSETS AND
LIABILITIES 10
STATEMENT OF OPERATIONS 11
STATEMENTS OF CHANGES IN NET
ASSETS 12
NOTES TO FINANCIAL STATEMENTS 13
SHAREHOLDER SERVICES 18
</TABLE>
<PAGE>
Letter from the President [PHOTO]
Dear Shareholder:
Over the past year, which includes this reporting period, the key themes in our
updates were consistent: global economic recovery, continued U.S. growth with
low inflation, investors' affinity for and fickleness with the capital markets,
and glitch-free passage into the next millennium. These themes will likely
continue into 2000, since turning a calendar page has little to do with the
conduct of economies or markets. Most economic and market conditions play out
over a period of time. However, transition should not be mistaken for
tranquility; volatility was extremely evident in the markets over the past 6
months, and we expect the same for the upcoming year.
Throughout 1999, many of the world's economies were mending. Asia, including
economically devastated Japan, showed signs of a sustainable recovery. Europe
improved, equity markets soared and growth in the U.S. climbed higher. As the
year ended, many of the world's economies looked brighter and the U.S. continued
to shine. In the U.S., economic growth accelerated. The inflation-wary Federal
Reserve again tapped the brakes to slow the U.S. growth engine by raising the
Fed Funds rate on November 16. This tightening - like the two preemptive moves
earlier in 1999 - was 25 basis points (.25 percent), totaling 75 basis points
(.75 percent) for 1999. The most recent hike in Fed Funds (25 basis points) was
announced at the February 2, 2000 Federal Open Market Committee (FOMC) meeting.
The Fed's inflation fighting vigilance continues.
Stock Market: Large cap stocks were strong performers for the reporting period.
The S&P 500 Index* finished 1999 up 21 percent despite increasing interest
rates, continuing fears of future interest rate hikes, looming Y2K issues and
recovery of many foreign economies. However, the Index composite declined
significantly in January 2000 to return -5.0 percent. The technology sector, the
largest weighted sector in the composite, returned 32 percent for the six-month
period ended January 31st.
Bond Market: The steady climb in interest rates throughout the year sent bond
prices lower. The bond market suffered its worst year-end performance since 1994
and the second worst since 1973. Rising interest rates, low unemployment,
inflationary fears and a runaway stock market did not bode well for the bonds
during this reporting period.
What do we expect going forward? We believe that Asia's recovery, including
Japan, will continue. We anticipate the growth in Europe will also continue. It
appears that more countries are moving toward free market economies. As these
countries embrace the free market system, we anticipate that capital will flow
more efficiently and competition will increase. Historically, price competition
keeps global inflation lower, however, past performance is not necessarily
indicative of future results.
On the domestic front, we expect growth to slow. The Federal Reserve will likely
adopt a "tightening" posture through the first half of 2000 to reign in the
economic growth rate. We expect that fundamentals for the stock market (i.e.,
earnings growth, moderate inflation, and good productivity numbers) will remain
very strong.
A technological revolution is driving the U.S. economy. Spending to retrofit
U.S. industry has pushed economic growth and productivity. It is likely that
market euphoria will spill over, and corrections will still occur in the economy
and the marketplace. However, this "new economy" is creating excitement and the
potential to bring significant opportunity to long-term investors.
Thank you for investing with Advantus.
Sincerely,
/s/ William N. Westhoff
William N. Westhoff, President
Advantus Funds
*The S&P 500 Index is a broad, unmanaged index of 500 common stocks which are
representative of the U.S. stock market overall.
<PAGE>
ADVANTUS Venture Fund
PERFORMANCE UPDATE
[PHOTO]
RICHARD WORTHING, CFA
PORTFOLIO MANAGER
The Advantus Venture Fund is
a mutual fund designed for
investors seeking long-term
accumulation of capital. The
Fund hopes to achieve its
objective by investing
primarily in equity
securities of small
capitalization companies
(i.e., companies with a
market capitalization of less
than $1.5 billion) at the
time of purchase.
- Dividends paid quarterly.
- Capital gains distributions paid annually.
Performance
For the six months ended January 31, 2000, the Advantus Venture Fund returned
the following for each class of shares currently offered:
<TABLE>
<S> <C>
CLASS A.......................... -6.78 PERCENT*
CLASS B.......................... -7.16 PERCENT*
CLASS C.......................... -7.15 PERCENT*
</TABLE>
The Russell 2000 Value Index** returned -7.10 percent for the same period.
Performance Analysis
Contrary to strong performance from the market in general, small cap value
stocks had a frustrating year. These stocks remained out of favor as investors
took comfort in the market dominance and liquidity of growth-oriented companies.
For the six-month period ending January 31, 2000, most sectors of the Russell
2000 Value Index** continued to show negative returns.
Throughout 1999, the domestic market's performance was dominated by the largest
capitalization stocks and the technology sector - neither of which is part of
the small cap value universe. Many good companies that are effectively executing
their business plans were ignored by the market simply because they are small or
because they are not technology companies. We feel strongly that this market
anomaly will not last forever, and that small cap value stocks should be a part
of a well-diversified portfolio.
Only three sectors in the Russell 2000 Value Index** - technology, energy, and
healthcare - showed positive returns for the year; the Fund also generated
positive returns in these areas. The Fund's strong relative performance in the
Technology sector stemmed from careful stock selection and our over weighting
relative to the benchmark during the last six months. We also continue to earn
strong relative performance in our real estate investment trust (REIT) holdings.
However, we performed poorly in the Consumer Cyclical area due to our holdings
in auto parts manufacturing and retail.
Certain areas of the Fund enjoyed standout performance during the reporting
period. Contract manufacturers DII Group (up 179 percent*) and Smart Modular (up
60 percent*) both ran their businesses well and were acquired by larger
companies in the same industry. We also had significant positions in
semi-conductor component manufacturers Vishay Intertechnology (up 186 percent*)
and International Rectifier (up 121 percent*). Finally, Zales Corp. - the
jewelry retailer - continued to perform well (up 48 percent*) for the Fund.
2
<PAGE>
Outlook
We believe that the gap in valuations between small and large cap stocks cannot
last forever. In recent months, we have seen small cap stocks perform better
than their large cap counterparts. Perhaps this is the beginning of a period in
which the valuation disparities between large and small stocks will narrow. We
feel that the market will eventually recognize the opportunities available in
small cap value stocks. In our opinion, a diversified portfolio - with a
representation in small cap value stocks - will benefit investors over the long
haul.
*HISTORICAL PERFORMANCE IS NOT AN INDICATION OF FUTURE PERFORMANCE. THESE
PERFORMANCE RESULTS DO NOT REFLECT THE IMPACT OF CLASS A'S MAXIMUM 5.5 PERCENT
FRONT-END SALES CHARGE OR CLASS B'S MAXIMUM 5 PERCENT CONTINGENT DEFERRED SALES
CHARGE.
**THE RUSSELL 2000 VALUE INDEX CONTAINS THOSE STOCKS FROM THE RUSSELL 2000 WITH
LOW PRICE TO BOOK RATIOS. THE RUSSELL 2000 ARE THE 2,000 SMALLEST COMPANIES IN
THE RUSSELL 3000. THE RUSSELL 3000 IS AN UNMANAGED INDEX OF 3,000 COMMON STOCKS
WHICH REPRESENTS APPROXIMATELY 98 PERCENT OF THE U.S. MARKET.
3
<PAGE>
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000
INVESTMENT IN THE ADVANTUS VENTURE FUND,
RUSSELL 2000 VALUE INDEX AND CONSUMER PRICE INDEX
On the following chart you can see how the total return for each of the three
classes of shares of the Advantus Venture Fund compared to the Russell 2000
Value Index and the Consumer Price Index. The lines represent the cumulative
total return of a hypothetical $10,000 investment made on the inception date of
each class of shares of the Advantus Venture Fund (January 31, 1997) through
January 31, 2000.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
<S> <C> <C> <C> <C> <C>
Class A:
One Year -5.89%
Since inception (1/31/97) 2.21%
Class B:
One Year -6.25%
Since inception (1/31/97) 2.36%
Class C:
One Year -1.32%
Since inception (1/31/97) 3.25%
(Thousands)
Russell 2000
Class A Class B Class C Value Index CPI
1/31/97 $10,000 $10,000 $10,000 $10,000 $10,000
7/31/97 10,944 11,033 11,533 11,790 10,075
7/31/98 11,919 11,965 12,449 12,503 10,245
7/31/99 11,456 11,474 11,850 12,487 10,458
1/31/00 10,679 10,727 11,003 11,656 10,609
</TABLE>
The preceding chart is useful because it provides you with more information
about your investments. There are limitations, however. An index may reflect the
performance of securities that the Fund may not hold. Also, the index does not
deduct sales charges, investment advisory fees and other fund expenses, whereas
your Fund does. Performance presented for the Fund reflects the deduction of the
maximum 5.5 percent front-end sales charge for Class A and the maximum
applicable contingent deferred sales charge for Class B shares. Sales charges
pay for your financial professional's investment advice. Individuals cannot
invest in the index itself, nor can they invest in any fund which seeks to track
the performance of the index without incurring some charges and expenses.
Historical performance is not an indication of future performance. Investment
returns and principal values will fluctuate so that shares upon redemption may
be worth more or less than their original cost.
4
<PAGE>
TEN LARGEST STOCK HOLDINGS
<TABLE>
<CAPTION>
MARKET % OF STOCK
COMPANY SHARES VALUE PORTFOLIO
- ------- -------- ---------- -----------
<S> <C> <C> <C>
GaSonics International Corporation.......... 28,500 $ 853,219 3.0%
International Rectifier Corporation......... 20,700 688,275 2.4%
Equitable Resources, Inc.................... 18,900 652,050 2.3%
The St. Joe Company......................... 26,700 632,456 2.2%
Pacific Gulf Properties, Inc................ 31,500 614,250 2.1%
United Stationers, Inc...................... 21,500 559,000 2.0%
The Men's Wearhouse, Inc.................... 22,600 539,575 1.9%
Piedmont Natural Gas Company................ 18,500 527,250 1.8%
Robert Mondavi Corporation.................. 13,400 494,125 1.7%
DII Group, Inc.............................. 6,300 489,825 1.7%
---------- ---------
$6,050,025 21.1%
========== =========
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Cash and Other Assets/Liabilities 9.7%
Health Care 1.6%
Transportation 2.9%
Basic Materials 6.2%
Consumer Staples 6.5%
Utilities 6.8%
Energy 7.1%
Consumer Cyclical 8.4%
Technology 11.2%
Capital Goods 12.7%
Financial 26.9%
</TABLE>
5
<PAGE>
ADVANTUS Venture Fund
Investments in Securities
JANUARY 31, 2000
(UNAUDITED)
(Percentages of each investment category relate to total net assets.)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
- ------ -----------
<C> <S> <C>
COMMON STOCK (90.3%)
BASIC MATERIALS (6.2%)
Chemicals (5.1%)
19,300 Cytec Industries, Inc. (b)...................... $ 487,325
8,000 Minerals Technologies, Inc....................... 361,000
16,900 Olin Corporation................................. 295,750
13,900 Quest Diagnostics, Inc. (b)..................... 472,600
-----------
1,616,675
-----------
Iron and Steel (1.1%)
22,900 Steel Dynamics, Inc. (b)........................ 356,381
-----------
CAPITAL GOODS (12.7%)
Containers-Metal/Glass (.7%)
20,000 American National Can Group, Inc................. 240,000
-----------
Electrical Equipment (2.6%)
11,275 Vishay Intertechnology, Inc. (b)................ 419,994
34,100 Watsco, Inc...................................... 396,412
-----------
816,406
-----------
Engineering/Construction (.5%)
16,500 Group Maintenance America Corporation (b)....... 148,500
-----------
Machinery (1.1%)
7,500 Tecumseh Products Company........................ 342,187
-----------
Manufacturing (5.1%)
14,100 A.O. Smith Corporation........................... 277,594
17,600 Aptargroup, Inc.................................. 387,200
26,700 The St. Joe Company.............................. 632,456
15,499 United Dominion Industries....................... 310,949
-----------
1,608,199
-----------
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
CAPITAL GOODS--CONTINUED
<C> <S> <C>
Metal Fabrication (1.7%)
8,400 Gibraltar Steel Corporation...................... $ 153,300
27,200 Tower Automotive, Inc. (b)...................... 391,000
-----------
544,300
-----------
Trucks and Parts (1.0%)
11,100 Oshkosh Truck Corporation........................ 321,900
-----------
CONSUMER CYCLICAL (8.4%)
Auto (1.4%)
8,500 Arvin Industries, Inc............................ 197,094
15,400 Dura Automotive Systems, Inc. (b)............... 246,400
-----------
443,494
-----------
Building Materials (.7%)
18,300 D.R. Horton, Inc................................. 211,594
-----------
Houseware (.9%)
16,200 Furniture Brands International, Inc. (b)........ 275,400
-----------
Retail (5.4%)
8,600 Ames Department Stores (b)...................... 179,525
22,300 Central Garden & Pet Company (b)................ 230,666
15,200 Shopko Stores (b)............................... 278,350
22,600 The Men's Wearhouse, Inc. (b)................... 539,575
13,500 Zale Corporation (b)............................ 482,625
-----------
1,710,741
-----------
CONSUMER STAPLES (6.5%)
Beverage (3.7%)
7,500 Adolph Coors Company............................. 363,750
6,400 Canandaigua Brands, Inc. (b).................... 332,000
</TABLE>
See accompanying notes to investments in securities.
6
<PAGE>
ADVANTUS Venture Fund
Investments in Securities - continued
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
CONSUMER STAPLES--CONTINUED
<C> <S> <C>
13,400 Robert Mondavi Corporation (b).................. $ 494,125
-----------
1,189,875
-----------
Food & Health (1.8%)
21,500 United Stationers, Inc. (b)..................... 559,000
-----------
Household Products (1.0%)
8,800 National Presto Industries, Inc.................. 308,000
-----------
ENERGY (7.1%)
Oil & Gas (7.1%)
18,900 Equitable Resources, Inc......................... 652,050
11,500 Helmerich & Payne................................ 270,250
15,500 Louis Dreyfus Natural Gas Corporation (b)....... 277,062
13,000 Nuevo Energy Company (b)........................ 240,500
20,800 Oceaneering International, Inc. (b)............. 345,800
13,000 Precision Drilling Corporation (b)(c)........... 332,312
3,100 Seacor Smit, Inc. (b)........................... 142,987
-----------
2,260,961
-----------
FINANCIAL (26.9%)
Banks (3.7%)
10,200 BankNorth Group, Inc............................. 269,025
18,540 Hudson United Bancorp, Inc....................... 433,373
22,400 Peoples Heritage Financial Group, Inc............ 329,000
14,930 Republic Bancorp, Inc............................ 158,631
-----------
1,190,029
-----------
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
FINANCIAL--CONTINUED
<C> <S> <C>
Finance-Diversified (1.9%)
21,500 Avis Rent A Car (b)............................. $ 456,875
7,600 Dollar Thrifty Automotive Group, Inc. (b)....... 150,575
-----------
607,450
-----------
Insurance (3.9%)
9,212 Radian Group, Inc................................ 371,359
12,250 RLI Corporation.................................. 382,812
19,400 StanCorp......................................... 470,450
-----------
1,224,621
-----------
Investment Bankers/Brokers (1.3%)
23,000 Allied Capital Corporation....................... 425,500
-----------
Real Estate Investment Trust (12.8%)
8,600 Apartment Investment & Management Company........ 325,725
15,800 Camden Property Trust............................ 408,825
17,400 CBL & Associates Properties, Inc................. 366,487
15,900 First Industrial Realty Trust.................... 427,312
7,100 Franchise Finance Corporation of America......... 170,400
22,200 Koger Equity, Inc................................ 349,650
18,500 Meristar Hospitality Corporation................. 301,781
31,500 Pacific Gulf Properties, Inc..................... 614,250
18,500 Pan Pacific Retail Properties.................... 331,844
7,200 Parkway Properties............................... 194,850
10,400 Prentiss Properties Trust........................ 218,400
3,000 Reckson Associates Realty Corporation............ 59,250
</TABLE>
See accompanying notes to investments in securities.
7
<PAGE>
ADVANTUS Venture Fund
Investments in Securities - continued
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
FINANCIAL--CONTINUED
<C> <S> <C>
14,200 Regency Realty Corporation....................... $ 277,787
-----------
4,046,561
-----------
Savings and Loans (3.3%)
6,500 Bank United Corporation.......................... 168,594
39,000 First Sentinel Bancorp, Inc...................... 294,937
17,000 FirstFed Financial Corporation (b).............. 222,062
8,800 Roslyn Bancorp, Inc.............................. 148,500
24,500 Seacoast Financial Services Corporation.......... 225,094
-----------
1,059,187
-----------
HEALTH CARE (1.6%)
Hospital Management (1.0%)
6,100 Province Healthcare Company (b)................. 161,650
3,600 Universal Health Services, Inc. (b)............. 160,875
-----------
322,525
-----------
Medical Products/Supplies (.6%)
7,100 Conmed Corporation (b).......................... 182,825
-----------
TECHNOLOGY (11.2%)
6,300 DII Group, Inc. (b)............................. 489,825
28,500 GaSonics International Corporation (b).......... 853,219
30,800 Infinium Software, Inc. (b)..................... 175,175
20,700 International Rectifier Corporation (b)......... 688,275
9,000 Manugistics Group, Inc. (b)..................... 380,813
12,400 Mastech Corporation (b)......................... 302,250
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
<C> <S> <C>
24,700 Mentor Graphics (b)............................. $ 334,994
18,500 Symix Systems, Inc. (b)......................... 312,188
-----------
3,536,739
-----------
TRANSPORTATION (2.9%)
Airlines (1.1%)
19,200 Atlantic Coast Airlines Holdings, Inc (b)....... 346,800
-----------
Transport Services (.8%)
19,050 Swift Transportation Company (b)................ 242,888
-----------
Trucking (1.0%)
8,700 USFreightways Corporation........................ 316,463
-----------
UTILITIES (6.8%)
Electric Companies (3.8%)
19,500 Minnesota Power, Inc............................. 327,844
22,000 Northwestern Corporation......................... 486,750
9,520 Sierra Pacific Resources......................... 152,320
9,000 WPS Resources Corporation........................ 227,813
-----------
1,194,727
-----------
Natural Gas (3.0%)
18,500 Piedmont Natural Gas Company..................... 527,250
14,700 Wicor, Inc....................................... 434,569
-----------
961,819
-----------
Total common stock
(cost: $28,125,621).......................................... 28,611,747
-----------
</TABLE>
See accompanying notes to investments in securities.
8
<PAGE>
ADVANTUS Venture Fund
Investments in Securities - continued
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE(A)
- --------- -----------
<C> <S> <C> <C> <C>
SHORT-TERM SECURITIES (11.3%)
$ 808,428 Federated Money Market Obligations Trust - Prime Obligation Fund,
current rate 5.680%................................................. $ 808,428
245,000 U.S. Treasury Bill............................... 5.215% 03/02/00 243,922
475,000 U.S. Treasury Bill............................... 5.381% 04/06/00 470,360
360,000 U.S. Treasury Bill............................... 5.449% 04/13/00 356,105
1,720,000 U.S. Treasury Bill............................... 5.466% 04/20/00 1,699,128
-----------
Total short-term securities (cost: $3,578,916)....................... 3,577,943
-----------
Total investments in securities (cost: $31,704,537) (d).............. $32,189,690
===========
</TABLE>
Notes to Investments in Securities
- -----------------------------------
(a) Securities are valued by procedures described in note 2 to the financial
statements.
(b) Presently non-income producing.
(c) The Fund held 1.0% of net assets in foreign securities as of January 31,
2000.
(d) At January 31, 2000 the cost of securities for federal income tax purposes
was $31,802,140. The aggregate unrealized appreciation and depreciation of
investments in securities based on this cost were:
<TABLE>
<S> <C>
Gross unrealized appreciation.......... $3,309,353
Gross unrealized depreciation.......... (2,921,803)
----------
Net unrealized appreciation............ $ 387,550
==========
</TABLE>
9
<PAGE>
ADVANTUS Venture Fund
Statement of Assets and Liabilities
JANUARY 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investments in securities, at market
value - see accompanying schedule for
detailed listing
(identified cost: $31,704,537)........ $32,189,690
Cash in bank on demand deposit......... 70
Receivable for Fund shares sold........ 1,400
Accrued interest receivable............ 5,228
Dividends receivable................... 14,918
Organizational costs (note 5).......... 35,785
----------
Total assets....................... 32,247,091
----------
LIABILITIES
Payable for investment securities
purchased............................. 484,988
Payable for Fund shares redeemed....... 13,727
Payable to Adviser..................... 74,670
Other payables......................... 337
----------
Total liabilities.................. 573,722
----------
Net assets applicable to outstanding
capital stock......................... $31,673,369
==========
Represented by:
Capital stock - authorized 10 billion
shares (Class A - 2 billion shares,
Class B - 2 billion shares, Class
C - 2 billion shares and 4 billion
shares unallocated) of $.01 par value
(note 1)............................. $ 30,504
Additional paid-in capital........... 31,764,643
Accumulated net realized losses from
investments.......................... (606,931)
Unrealized appreciation on
investments.......................... 485,153
----------
Total - representing net assets
applicable to outstanding capital
stock.............................. $31,673,369
==========
Net assets applicable to outstanding
Class A shares........................ $28,951,009
==========
Net assets applicable to outstanding
Class B shares........................ $2,472,884
==========
Net assets applicable to outstanding
Class C shares........................ $ 249,476
==========
Shares outstanding and net asset value
per share:
Class A - Shares outstanding
2,786,415............................ $ 10.39
==========
Class B - Shares outstanding
239,885.............................. $ 10.31
==========
Class C - Shares outstanding
24,099............................... $ 10.35
==========
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
ADVANTUS Venture Fund
Statement of Operations
PERIOD FROM AUGUST 1, 1999 TO JANUARY 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
Investment income:
Interest............................. $ 51,867
Dividends............................ 326,127
----------
Total investment income.......... 377,994
----------
Expenses (note 4):
Investment advisory fee.............. 131,581
Rule 12b-1 fees - Class A............ 37,160
Rule 12b-1 fees - Class B............ 13,957
Rule 12b-1 fees - Class C............ 1,880
Administrative services fee.......... 37,200
Amortization of organizational
costs.............................. 8,946
Custodian fees....................... 3,107
Auditing and accounting services..... 7,831
Legal fees........................... 4,000
Registration fees.................... 18,816
Printing and shareholder reports..... 22,037
Insurance............................ 1,770
Other................................ 3,761
----------
Total expenses................... 292,046
----------
Less fees and expenses waived or
absorbed by Adviser and
Distributor:
Class A distribution fees.......... (14,864)
Other fund expenses................ (33,454)
----------
Total fees and expenses waived
or absorbed.................... (48,318)
----------
Total net expenses............. 243,728
----------
Investment income - net.......... 134,266
----------
Realized and unrealized gains on
investments:
Net realized gains (losses) on
investments (note 3)............... 507,214
Net change in unrealized appreciation
or depreciation on investments..... (3,041,817)
----------
Net losses on investments........ (2,534,603)
----------
Net decrease in net assets resulting
from operations...................... $(2,400,337)
==========
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
ADVANTUS Venture Fund
Statements of Changes in Net Assets
PERIOD FROM AUGUST 1, 1999 TO JANUARY 31, 2000 AND YEAR ENDED JULY 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
2000 1999
----------- -----------
<S> <C> <C>
Operations:
Investment income - net.............. $ 134,266 $ 247,089
Net realized gain (loss) on
investments........................ 507,214 (1,025,483)
Net change in unrealized appreciation
or depreciation on investments..... (3,041,817) (941,849)
----------- -----------
Decrease in net assets resulting
from operations................ (2,400,337) (1,720,243)
----------- -----------
Distributions to shareholders from:
Investment income - net:
Class A............................ (140,334) (275,602)
Class B............................ (1,068) (5,780)
Class C............................ (98) (841)
Net realized gains on investments:
Class A............................ - (668,597)
Class B............................ - (74,443)
Class C............................ - (13,292)
Tax return of capital:
Class A............................ - (50,758)
Class B............................ - (1,064)
Class C............................ - (155)
----------- -----------
Total distributions.............. (141,500) (1,090,532)
----------- -----------
Capital share transactions (notes 4 and
6):
Proceeds from sales:
Class A............................ 561,580 1,047,296
Class B............................ 173,294 1,022,415
Class C............................ 41,170 516,115
Proceeds from issuance of shares as a
result of reinvested dividends:
Class A............................ 14,803 127,503
Class B............................ 1,058 80,886
Class C............................ 97 13,519
Payments for redemption of shares:
Class A............................ (1,018,925) (1,660,697)
Class B............................ (593,451) (1,258,927)
Class C............................ (229,139) (673,828)
----------- -----------
Decrease in net assets from
capital share transactions..... (1,049,513) (785,718)
----------- -----------
Total decrease in net assets..... (3,591,350) (3,596,493)
Net assets at beginning of period...... 35,264,719 38,861,212
----------- -----------
Net assets at end of period............ $31,673,369 $35,264,719
=========== ===========
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
ADVANTUS Venture Fund
Notes to Financial Statements
JANUARY 31, 2000
(UNAUDITED)
(1) ORGANIZATION
Advantus Venture Fund, Inc. (the Fund) was incorporated on July 3, 1996. The
Fund is registered under the Investment Company Act of 1940 (as amended) as a
diversified, open-end management investment company. The Fund's investment
objective is to seek long-term accumulation of capital.
The Fund currently issues three classes of shares: Class A, Class B and
Class C shares. Class A shares are sold subject to a front-end sales charge.
Class B shares are sold subject to a contingent deferred sales charge payable
upon redemption if redeemed within six years of purchase. Class C shares are
sold without either a front-end sales charge or a contingent deferred sales
charge. Both Class B and Class C shares are subject to a higher Rule 12b-1 fee
than Class A shares. Both Class B and Class C shares automatically convert to
Class A shares at net asset value after a specified holding period. Such holding
periods decline as the amount of the purchase increases and range from 28 to 84
months after purchase for Class B shares and 40 to 96 months after purchase for
Class C shares. All three classes of shares have identical voting, dividend,
liquidation and other rights and the same terms and conditions, except that the
level of Rule 12b-1 fees charged differs between Class A, Class B and Class C
shares. Income, expenses (other than Rule 12b-1 fees) and realized and
unrealized gains or losses are allocated to each class of shares based upon its
relative net assets.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed by the Fund are summarized as
follows:
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts in the financial statements. Actual
results could differ from those estimates.
INVESTMENTS IN SECURITIES
The Fund's net asset value is generally calculated as of the close of normal
trading on the New York Stock Exchange (typically 3:00 p.m. Central Time).
Investments in securities traded on a national exchange are valued at the last
sales price on that exchange prior to the time when assets are valued;
securities traded in the over-the-counter market and listed securities for which
no sale was reported on that date are valued on the basis of the last current
bid price, by an independent pricing service or at price deemed best to reflect
fair value as quoted by dealers who make markets in these securities. When
market quotations are not readily available, securities are valued at fair value
as determined in good faith under procedures adopted by the Board of Directors.
Short-term securities are valued at market value.
Security transactions are accounted for on the date the securities are
purchased or sold. Realized gains and losses are calculated on the
identified-cost basis. Dividend income is recognized on the ex-dividend date and
interest income, including amortization of bond premium and discount computed on
a level yield basis, is accrued daily.
13
<PAGE>
ADVANTUS Venture Fund
Notes to Financial Statements - continued
(UNAUDITED)
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)
FEDERAL TAXES
The Fund's policy is to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to shareholders. Therefore, no income tax provision is required.
The Fund's policy is to make required minimum distributions prior to December
31, in order to avoid federal excise tax.
Net investment income and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of temporary book-to-tax
differences. The character of distributions made during the year from net
investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
On the statement of assets and liabilities, as a result of permanent
book-to-tax differences, a reclassification adjustment was made to increase
undistributed net investment income and decrease additional paid-in capital by
$7,234.
For federal income tax purposes, the Fund has a capital loss carryover in
the amount of $868,393 which, if not offset by subsequent capital gains, will
expire July 31, 2007 through 2008. It is unlikely the Board of Directors will
authorize a distribution of any net realized capital gain until the available
capital loss carryover has been offset or expires.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income are declared and paid quarterly.
Realized gains, if any, are paid annually.
(3) INVESTMENT SECURITY TRANSACTIONS
For the period ended January 31, 2000, purchases of securities and proceeds
from sales, other than temporary investments in short-term securities aggregated
$16,436,385 and $18,752,523, respectively.
(4) EXPENSES AND RELATED PARTY TRANSACTIONS
The Fund has an investment advisory agreement with Advantus Capital. Under
the agreement, Advantus Capital manages the Fund's assets and provides research,
statistical and advisory services and pays related office rental and executive
expenses and salaries. In addition, as part of the advisory fee, Advantus
Capital pays the expenses of the Fund's transfer, dividend disbursing and
redemption agent (PFPC Global Fund Services). The fee for investment management
and advisory services is based on the average daily net assets of the Fund at
the annual rate of .80 percent.
The Fund has adopted separate Plans of Distribution applicable to Class A,
Class B and Class C shares, respectively, relating to the payment of certain
expenses pursuant to Rule 12b-1 under the Investment Company Act of 1940 (as
amended). The Fund pays fees to Ascend Financial Services, Inc. (Ascend), the
underwriter of the Fund and wholly-owned subsidiary of Advantus Capital, to be
used to pay certain expenses incurred in connection with the distribution,
promotion and servicing of the Fund's shares. The Class A Plan provides for a
servicing fee up to .25 percent of average daily net assets of Class A shares.
The Class B and Class C Plans provide for a fee up to 1.00 percent of average
daily net assets of Class B and Class C shares, respectively. The Class B and
Class C 1.00 percent fee is comprised of a .75 percent distribution fee and a
.25 percent service fee. Ascend is currently waiving that portion of Class A
Rule 12b-1 fees which exceeds, as a percentage of average daily net assets,
.15 percent. Ascend waived Class A Rule 12b-1 fees in the amount of $14,864 for
the period ended January 31, 2000.
14
<PAGE>
ADVANTUS Venture Fund
Notes to Financial Statements - continued
(UNAUDITED)
(4) EXPENSES AND RELATED PARTY TRANSACTIONS - (CONTINUED)
The Fund also bears certain other operating expenses including outside
directors' fees, custodian fees, registration fees, printing and shareholder
reports, legal, auditing and accounting services, organizational costs and other
miscellaneous expenses.
The Fund has entered into a shareholder and administrative services
agreement with Minnesota Life Insurance Company (Minnesota Life). Under this
agreement, the Fund pays an administrative services fee equal to $6,200 per
month to Minnesota Life for accounting, auditing, legal and other administrative
services which Minnesota Life provides. Prior to August 1, 1999, the
administrative services fee was $5,700 per month. In addition, for shareholder
services performed by Minnesota Life, the Adviser will pay Minnesota Life an
annual account servicing fee as agreed by the Adviser and Minnesota Life.
Advantus Capital directly incurs and pays the above operating expenses and
the Fund in turn reimburses Advantus Capital. During the period ended
January 31, 2000, Advantus Capital voluntarily agreed to absorb $33,454 in
expenses which were otherwise payable by the Fund.
Sales charges received by Ascend for distributing the Fund's three classes
of shares amounted to $7,204.
As of January 31, 2000, Minnesota Life and subsidiaries and the directors
and officers of the Fund as a whole own the following shares:
<TABLE>
<CAPTION>
NUMBER OF SHARES PERCENTAGE OWNED
---------------- ----------------
<S> <C> <C>
Class A................................. 505,257 33.9%
Class B................................. 5,178 .3%
Class C................................. 5,168 2.7%
</TABLE>
Legal fees were paid to a law firm of which the Fund's secretary is a
partner in the amount of $4,000.
(5) ORGANIZATIONAL COSTS
The Fund incurred organizational expenses in connection with the start-up
and initial registration. These costs will be amortized over 60 months on a
straight-line basis beginning with the commencement of operations. If any or all
of the shares held by Advantus Capital, or any other holder, representing
initial capital of the Fund are redeemed during the amortization period, the
redemption proceeds will be reduced by the pro rata portion (based on the ratio
that the number of initial shares redeemed bears to the total number of
outstanding initial shares of the Fund at the date of redemption) of the
unamortized organizational cost balance.
(6) CAPITAL SHARE TRANSACTIONS
Transactions in shares for the period from August 1, 1999 to January 31,
2000 and the year ended July 31, 1999 were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
------------------- ------------------- -------------------
2000 1999 2000 1999 2000 1999
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Sold.......................................... 52,581 98,016 16,606 99,249 3,895 47,263
Issued for reinvested distributions........... 1,437 11,844 111 7,536 10 1,252
Redeemed...................................... (96,910) (158,579) (57,249) (122,017) (21,635) (65,336)
------- -------- ------- -------- ------- -------
(42,892) (48,719) (40,532) (15,232) (17,730) (16,821)
======= ======== ======= ======== ======= =======
</TABLE>
15
<PAGE>
ADVANTUS Venture Fund
Notes to Financial Statements - continued
(UNAUDITED)
(7) FINANCIAL HIGHLIGHTS
Per share data for a share of capital stock and selected information for
each period are as follows:
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------
PERIOD FROM PERIOD FROM
AUGUST 1, JANUARY 31,
1999 TO YEAR ENDED JULY 31, 1997(D) TO
JANUARY 31, ------------------- JULY 31,
2000 1999 1998 1997
----------- -------- --------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period... $ 11.20 $ 12.03 $ 11.73 $ 10.17
------- ------- ------- -------
Income from investment operations:
Net investment income (loss)......... .05 .10 .06 .05
Net gains (losses) on securities
(both realized and unrealized)..... (.81) (.59) .98 1.55
------- ------- ------- -------
Total from investment operations... (.76) (.49) 1.04 1.60
------- ------- ------- -------
Less distributions:
Dividends from net investment
income............................. (.05) (.09) (.08) (.04)
Distributions from capital gains..... - (.23) (.66) -
Tax return of capital................ - (.02) - -
------- ------- ------- -------
Total distributions................ (.05) (.34) (.74) (.04)
------- ------- ------- -------
Net asset value, end of period......... $ 10.39 $ 11.20 $ 12.03 $ 11.73
======= ======= ======= =======
Total return (a)....................... (6.78)% (3.89)% 8.92% 15.79%
Net assets, end of period
(in thousands)....................... $28,951 $31,683 $34,630 $30,662
Ratio of expenses to average daily net
assets (c)........................... 1.40%(b) 1.40% 1.38% 1.35%(b)
Ratio of net investment income (loss)
to average daily net assets (c)...... .90%(b) .81% .55% .90%(b)
Portfolio turnover rate (excluding
short-term securities)............... 53.4% 103.9% 45.0% 39.6%
</TABLE>
- ------------
(a) Total return figures are based on a share outstanding throughout the period
and assume reinvestment of distributions at net asset value. Total return
figures do not reflect the impact of front-end or contingent deferred sales
charge. For periods less than one year, total return presented has not been
annualized.
(b) Adjusted to an annual basis.
(c) The Fund's Adviser and Distributor voluntarily waived or absorbed $48,318,
$77,189, $59,431 and $26,677 in expenses for the period from August 1, 1999
to January 31, 2000, the years ended July 31, 1999 and 1998 and the period
from January 31, 1997 (date of inception) to July 31, 1997, respectively.
If Class A shares had been charged for these expenses, the ratio of
expenses to average daily net assets would have been 1.70%, 1.64%, 1.55%
and 1.55%, and the ratio of net investment income to average daily net
assets would have been .60%, .57%, .38% and .70% for the period from August
1, 1999 to January 31, 2000, the years ended July 31, 1999 and 1998 and the
period from January 31, 1997 (date of inception) to July 31, 1997,
respectively. If Class B shares had been charged for these expenses, the
ratio of expenses to average daily net assets would have been 2.45% and
2.36%, respectively, and the ratio of net investment income (loss) to
average daily net assets would have been (.15)% and (.15)%, respectively
for the period from August 1, 1999 to January 31, 2000 and the year ended
July 31, 1999. If Class C shares had been charged for these expenses, the
ratio of expenses to average daily net assets would have been 2.45% and
2.36%, respectively, and the ratio of net investment income (loss) to
average daily net assets would have been (.13)% and (.15)%, respectively
for the period from August 1, 1999 to January 31, 2000 and the year ended
July 31, 1999.
(d) Inception date of the fund.
16
<PAGE>
ADVANTUS Venture Fund
Notes to Financial Statements - continued
(UNAUDITED)
<TABLE>
<CAPTION>
CLASS B CLASS C
---------------------------------------------- ---------------------------------
PERIOD FROM PERIOD FROM PERIOD FROM
AUGUST 1, JANUARY 31, AUGUST 1,
1999 TO YEAR ENDED JULY 31, 1997(D) TO 1999 TO YEAR ENDED JULY 31,
JANUARY 31, -------------------- JULY 31, JANUARY 31, --------------------
2000 1999 1998 1997 2000 1999 1998
----------- --------- --------- ----------- ----------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period... $11.11 $11.94 $11.71 $10.17 $11.15 $11.98 $11.71
------ ------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income (loss)......... - - (.02) .01 - (.01) (.03)
Net gains (losses) on securities
(both realized and unrealized)..... (.80) (.58) .92 1.54 (.80) (.57) .97
------ ------ ------ ------ ------ ------ ------
Total from investment operations... (.80) (.58) .90 1.55 (.80) (.58) .94
------ ------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment
income............................. - (.02) (.01) (.01) - (.02) (.01)
Distributions from capital gains..... - (.23) (.66) - - (.23) (.66)
Tax return of capital................ - - - - - - -
------ ------ ------ ------ ------ ------ ------
Total distributions................ - (.25) (.67) (.01) - (.25) (.67)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period......... $10.31 $11.11 $11.94 $11.71 $10.35 $11.15 $11.98
====== ====== ====== ====== ====== ====== ======
Total return (a)....................... (7.16)% (4.77)% 7.65% 15.33% (7.15)% (4.81)% 7.90%
Net assets, end of period
(in thousands)....................... $2,473 $3,115 $3,529 $1,052 $ 249 $ 467 $ 702
Ratio of expenses to average daily net
assets (c)........................... 2.24%(b) 2.25% 2.25% 2.25%(b) 2.24%(b) 2.25% 2.25%
Ratio of net investment income (loss)
to average daily net assets (c)...... .05%(b) (.04)% (.26)% .01%(b) .07%(b) (.04)% (.26)%
Portfolio turnover rate (excluding
short-term securities)............... 53.4% 103.9% 45.0% 39.6% 53.4% 103.9% 45.0%
<CAPTION>
CLASS C
-----------
PERIOD FROM
JANUARY 31,
1997(D) TO
JULY 31,
1997
-----------
<S> <C>
Net asset value, beginning of period... $10.17
------
Income from investment operations:
Net investment income (loss)......... .01
Net gains (losses) on securities
(both realized and unrealized)..... 1.54
------
Total from investment operations... 1.55
------
Less distributions:
Dividends from net investment
income............................. (.01)
Distributions from capital gains..... -
Tax return of capital................ -
------
Total distributions................ (.01)
------
Net asset value, end of period......... $11.71
======
Total return (a)....................... 15.38%
Net assets, end of period
(in thousands)....................... $ 175
Ratio of expenses to average daily net
assets (c)........................... 2.25%(b)
Ratio of net investment income (loss)
to average daily net assets (c)...... .01%(b)
Portfolio turnover rate (excluding
short-term securities)............... 39.6%
</TABLE>
- ------------
17
<PAGE>
Shareholder Services
The Advantus Family of Funds offers a variety of services that enhance your
ability to manage your assets. Check each Fund's prospectus for the details of
the services and any limitations that may apply.
EXCHANGE PRIVILEGES: You can move all or part of your investment dollars from
one fund to any other Advantus Fund you own (for identical registrations within
the same share class) at any time as your needs change. Exchanges are at the
then current net asset value (exchanges from the Advantus Money Market Fund will
incur the applicable sales charge, if not previously subjected to the charge).
Shareholders may make twelve exchanges each calendar year without incurring a
transaction charge. Thereafter, there will be a $7.50 transaction charge for
each additional exchange within the calendar year.
INCOME DISTRIBUTION FLEXIBILITY: You can have your fund dividends and other
distributions automatically reinvested with no sales charge, direct them from
one Advantus Fund to any other you own within the Fund family or, if you desire,
we'll pay you in cash.
SYSTEMATIC WITHDRAWAL PLAN: You can set up a plan to receive a check at
specified intervals from your fund account - subject to minimum guidelines.
Depending upon the performance of the underlying investment options, the value
may be worth more or less than the original amount invested when withdrawn.
DIRECT DIVIDEND DEPOSITS: At your request we will deposit your dividends or
systematic withdrawals directly into your checking or savings account instead of
sending you a check.
TELEPHONE EXCHANGE: You may move money from one Advantus account to any other
Advantus account you own (with identical registrations within the same share
class) just by calling our toll-free number. The Telephone Exchange privilege
will automatically be established unless otherwise indicated on the Account
Application. Telephone Exchange may be changed (added/deleted) at any time by
submitting a request in writing.
SYSTEMATIC EXCHANGE: You may move a set amount of money monthly or quarterly
from one Advantus Fund to another Advantus Fund (with identical registrations
within the same share class) to diversify your investment portfolio and take
advantage of "dollar-cost averaging".
AUTOMATIC PAYMENT OF INSURANCE PREMIUMS: You may automatically pay your
Minnesota Life insurance premiums from your Advantus Money Market account.
REDUCED SALES CHARGES: Letter of Intent, combined purchases with spouse,
children or single trust estates, and the Right of Accumulation make it possible
for you to reduce the sales charge, if any.
AUTOMATIC INVESTMENT PLAN: This special purchase plan enables you to open an
Advantus Fund account for as little as $25 and lower your average share cost
through "dollar-cost averaging." (Dollar-cost averaging does not assure a
profit, nor does it prevent loss in declining markets.) The Automatic Investment
Plan allows you to invest automatically monthly, semi-monthly or quarterly from
your checking or savings account.
IRAS, OTHER QUALIFIED PLANS: You can use the Advantus Family of Funds for your
Traditional, Roth or Education Individual Retirement Account or other qualified
plans including: SEP IRA's, SIMPLE IRA's, Profit Sharing, 401(k) Money Purchase
or Defined Benefit plans.
TELEPHONE REDEMPTION: You may call us and redeem shares over the phone. The
proceeds will be sent by check to the address of record for the account or wire
transferred to your bank of record for the account. Wire transfers are for
amounts over $500. The prevailing wire charge will be added to the withdrawal
amount. The Telephone Redemption privilege will automatically be established
unless otherwise indicated on the Account Application. Telephone Redemption may
be changed (added/deleted) at any time by submitting a request in writing. To
have the redemption automatically deposited into your checking account, please
send a voided check
18
<PAGE>
from your bank. Depending on the performance of the underlying investment
options, the value may be worth more or less than the original amount invested
upon redemption. Some limitations apply, please refer to the prospectus for
details.
ACCOUNT UPDATES: You'll receive written confirmation of every investment you
initiate and quarterly statements to help you track all of your Advantus Fund
investments and annual tax statements. Semi-annual and annual reports will
provide you with portfolio information, fund performance data and the current
investment outlook.
TOLL-FREE SERVICE LINE: For your convenience in obtaining information and
assistance directly from Advantus Shareholder Services, call 1-800-665-6005.
Advantus Account Representatives are available Monday through Friday from 7:30
a.m. to 5:15 p.m. Central Time. Our voice response system is available 24 hours,
seven days a week. This system allows you to access current net asset values,
account balances and recent account activity.
INTERNET ADDRESS: www.Advantusfunds.com
HOW TO INVEST
You can invest in one or more of the eleven Advantus Funds through a local
Registered Representative of Ascend Financial Services, Inc., distributor of the
Funds. Contact your representative for information and a prospectus for any of
the Advantus Funds you are interested in. To find a Registered Representative
near you, call the toll-free service line (1-800-665-6005) or visit
www.Advantusfunds.com.
MINIMUM INVESTMENTS: Your initial investment in any of the Advantus Funds can
be as small as $25 when you use our Automatic Investment Plan. Minimum lump-sum
initial investment is $250. Minimum subsequent investment is $25.
THE FUND'S MANAGER
Advantus Capital Management, Inc., investment adviser to the Fund, selects and
reviews the Fund's investments and provides executive and other personnel for
the Fund's management. (For the Advantus International Balanced Fund, Inc., the
sub-adviser, Templeton Investment Counsel, Inc., selects the Fund's
investments.)
Advantus Capital Management, Inc. manages twelve mutual funds containing $3.5
billion in assets in addition to $11.2 billion in assets for other clients.
Advantus Capital's seasoned portfolio managers average more than 13 years of
investment experience.
ADVANTUS FAMILY OF FUNDS
Advantus Bond Fund
Advantus Horizon Fund
Advantus Spectrum Fund
Advantus Enterprise Fund
Advantus Cornerstone Fund
Advantus Money Market Fund
Advantus Mortgage Securities Fund
Advantus International Balanced Fund
Advantus Venture Fund
Advantus Index 500 Fund
Advantus Real Estate Securities Fund
19
<PAGE>
THIS REPORT HAS BEEN PREPARED FOR SHAREHOLDERS. THIS MAY BE USED AS SALES
LITERATURE IN CONNECTION WITH THE
OFFER OR SALE OF THE ADVANTUS VENTURE FUND IF PRECEDED OR ACCOMPANIED BY (A) THE
CURRENT PROSPECTUS FOR THE
ADVANTUS VENTURE FUND, AND (B) THE CURRENT ADVANTUS MUTUAL FUND PERFORMANCE
REPORT.
READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.
[LOGO]
[ADVANTUS -TM- FAMILY OF FUNDS]
ASCEND FINANCIAL SERVICES, INC.,
SECURITIES DEALER, MEMBER NASD/SIPC
400 ROBERT STREET NORTH
ST. PAUL, MN 55101-2098
1-800-AFS-1838
(1-800-237-1838)
<PAGE>
<TABLE>
<S> <C>
ASCEND FINANCIAL SERVICES, INC. -------------------
400 ROBERT STREET NORTH PRESORTED STANDARD
ST. PAUL, MN 55101-2098 U.S. POSTAGE PAID
ST. PAUL, MN
PERMIT NO. 3547
-------------------
ADDRESS SERVICE REQUESTED
</TABLE>
F.52034 Rev. 3-2000
