<PAGE>
INDEX 500
ADVANTUS INDEX 500 FUND, INC.
ANNUAL REPORT TO SHAREHOLDERS DATED JULY 31, 2000 [Logo]
ADVANTUS-TM-
FAMILY OF FUNDS
EQUITY
[Graphic]
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ADVANTUS INDEX 500 FUND
TABLE OF CONTENTS
<TABLE>
<S> <C>
PERFORMANCE UPDATE 2
INVESTMENTS IN SECURITIES 6
STATEMENT OF ASSETS AND
LIABILITIES 16
STATEMENT OF OPERATIONS 17
STATEMENTS OF CHANGES IN NET
ASSETS 18
NOTES TO FINANCIAL STATEMENTS 19
INDEPENDENT AUDITORS' REPORT 24
FEDERAL INCOME TAX INFORMATION 25
SHAREHOLDER VOTING RESULTS 26
SHAREHOLDER SERVICES 27
</TABLE>
<PAGE>
LETTER FROM THE PRESIDENT [PHOTO]
Dear Shareholder:
The U.S. has been enjoying an exceptional economic environment. Over the past
10 years, we have seen booming capital markets bolstered by robust economic
growth and low, but rising inflation. Since June 1999, six interest rate
increases engineered by the inflation-fighting Federal Reserve, have resulted in
some early signs of an economic slowdown. Recent economic data (housing starts,
auto sales and unemployment) indicate that the breakneck growth rate may be
slowing.
We still contend that the Fed holds a bias towards tightening the money supply.
As you know, the Federal Funds Rate, the overnight rate at which Federal Reserve
member banks loan each other money, is a powerful tool for the Fed. Currently,
short-term interest rates are higher than long-term rates, which clearly shows
that the economy is in a tightening mode.
Our country's economic strength is very broad, and there are very few weak
spots. The U.S. has also benefited from the expanding global economy. Large,
diversified companies are doing well in the current economic climate. As capital
spending remains strong, underlying support for technology grows. Companies
everywhere continue to build their technology base and infrastructure.
In the equity market, valuations DO matter, as evidenced by the latest series of
market corrections early in the second quarter. Capitalism has a way of bringing
things back into balance. Market corrections tend to be quick and sharp.
Investors may need to adjust their expectations, as double-digit equity returns
may not be as commonplace as they have been over the last few years. Even though
recent corrections have reigned in many stocks - particularly in the technology
sector - the stock market is still strong.
So far this year, U.S. Treasury securities have been the star performers within
the fixed income universe. U.S. Treasuries have benefited from a relatively low
inflationary environment, the strong fiscal situation in the U.S., and the
government's decision to buy back its longer-maturity debt. Corporate bonds have
been the weakest performing fixed income sector in 2000. An inverted yield curve
(i.e., short-term bonds have higher yields than long-term bonds), several Fed
tightening moves, increased event risk and equity market volatility have all
negatively impacted corporate bond performance. Mortgage-backed securities have
outperformed corporate bonds to date this year, but have lagged U.S. Treasuries.
Whenever we have a change in interest rate direction, volatility and uncertainty
surface. We have witnessed volatility in the capital markets throughout the
first half of 2000, and we believe this will continue through the remainder of
the year. In this election year, we will witness the political posturing of both
parties. It is likely, however, that whoever the presidential election in
November brings to office, Americans will still enjoy a healthy, recession-free
economy.
Thank you for your continued confidence and investment in the Advantus Family of
Funds.
Sincerely,
/s/ William N. Westhoff
William N. Westhoff, President
Advantus Funds
<PAGE>
ADVANTUS INDEX 500 FUND
PERFORMANCE UPDATE
[PHOTO]
JAMES SEIFERT,
PORTFOLIO MANAGER
The Advantus Index 500 Fund+ seeks investment results that correspond generally
to the price and yield performance of the common stocks included in the Standard
and Poor's Corporation 500 Composite Stock Index (S&P 500 Index). It is designed
to provide an economical and convenient means of maintaining a broad position in
the equity market as part of an overall investment strategy.
- Dividends paid quarterly.
- Capital gains distributions paid annually.
PERFORMANCE
For the year ended July 31, 2000, the Advantus Index 500 Fund returned the
following for each class of shares currently offered:
<TABLE>
<S> <C>
Class A.......................... 7.67 percent*
Class B.......................... 6.71 percent*
Class C.......................... 6.73 percent*
</TABLE>
This compares to the Fund's benchmark, the S&P 500**, which returned 8.96
percent over the same period.
PERFORMANCE ANALYSIS
Increased volatility was clearly the underlying theme over the past 12 months.
Technology names provided impressive gains in the last quarter of 1999. However
in the first quarter of the calendar year 2000, Technology names provided
equally impressive negative returns. Size was a factor in 1999, with the largest
100 securities, such as General Electric Company and Microsoft Corporation,
generating the majority of the total return. However, large capitalization
stocks represented in the S&P 500 Index, which are typically those stocks with a
market capitalization of more than $25 billion, have given way to stronger
performing mid-cap securities in 2000.
Representing 32.5 percent of the total market cap of the S&P 500, technology was
the weight behind the Composite's (i.e., the S&P 500) numbers. The Technology
sector ended the 12-month period up 39.6 percent, and contributed 9.02 percent
to the Composite's return. Health Care was the next best performing sector with
a 14.1 percent total return and a contribution of 1.4 percent. Cisco
Systems, Inc., Intel Corporation, General Electric Company, Oracle Systems and
Nortel Networks Corporation were the top five individual contributors. The Basic
Material sector performed the worst in the last 12 months with a negative 20.9
percent return. However, it was the Communication Services sector that hurt the
Composite the most with a negative 1.6 percent contribution to the Composite's
performance. Microsoft Corporation, Lucent Technologies, AT&T Corporation, MCI
Worldcom, Inc., and Procter & Gamble led the negative individual contributors.
2
<PAGE>
OUTLOOK
We believe the equity market should do reasonably well over the next few months,
and volatility will continue. We anticipate that price to earnings (P/E)
ratios++ will go up as growth and interest rates stabilize and inflation
gradually goes down. Higher P/Es indicate that we may be moving back to a more
normal time when investors' expectations ran in the single-digit returns.
We see no recession in sight. Our country's economic strength is too broad, and
there are very few weak spots. We believe that ultimately, the economy will
slow, and the threat of higher inflation will subside; the Fed will prevail. We
think the Fed has not finished tightening and anticipate at least one more
increase in interest rates before November. Whenever we have a change in
interest rate direction, volatility and uncertainty surface. We have witnessed
volatility in the capital markets throughout the first half of 2000, and we
believe this will continue through the remainder of the year.
*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 S&P 500 Index is a broad, unmanaged index of 500 common stocks which are
representative of the U.S. stock market overall. The Advantus Index 500 Fund is
a mutual fund whose performance reflects the deduction of an investment advisory
fee and other expenses.
+"Standard & Poor's", "S&P", "S&P 500", "Standard & Poor's 500", and "500" are
trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by
the Advantus Index 500 Fund, Inc. The Fund is not sponsored, endorsed, sold or
promoted by Standard & Poor's and Standard & Poor's makes no representation
regarding the advisability of investing in the Fund.
++P/E ratio is a stock's price divided by it's earnings per share.
3
<PAGE>
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000
INVESTMENT IN THE ADVANTUS INDEX 500 FUND,
S&P 500 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 Index 500 Fund compared to the S&P 500 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 Index 500 Fund (January 31, 1997) through July 31, 2000.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN:
<S> <C>
Class A:
One year 1.75%
Since inception (1/31/97) 17.10%
Class B:
One year 1.71%
Since inception (1/31/97) 17.50%
Class C:
One year 6.73%
Since inception (1/31/97) 17.84%
</TABLE>
<TABLE>
<CAPTION>
(THOUSANDS) CLASS A CLASS B CLASS C S&P 500 INDEX CPI
<S> <C> <C> <C> <C> <C>
1/31/97 10,000 10,000 10,000 10,000 10,000
7/31/97 11,464 11,577 12,043 12,244 10,075
7/31/98 13,549 13,701 14,101 14,607 10,245
7/31/99 16,141 16,362 16,644 17,557 10,458
7/31/00 17,379 17,584 17,763 19,129 10,834
</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>
General Electric Company................... 42,348 $ 2,178,275 4.1%
Cisco Systems, Inc......................... 29,802 1,950,168 3.6%
Intel Corporation.......................... 28,658 1,912,922 3.6%
Microsoft Corporation...................... 22,523 1,572,387 2.9%
Exxon Mobile Corporation................... 14,912 1,192,959 2.2%
Pfizer, Inc................................ 26,906 1,160,321 2.2%
Wal-Mart Stores, Inc....................... 19,101 1,049,361 1.9%
CitiGroup, Inc............................. 14,460 1,020,334 1.9%
Nortel Networks Corporation................ 12,675 942,703 1.8%
Oracle Systems............................. 12,201 917,363 1.7%
----------- ----
$13,896,793 25.9%
=========== ====
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Cash and Other Assets/Liabilities 4.2%
Transportation 0.6%
Utilities 2.4%
Basic Materials 2.8%
Energy 5.1%
Communication Services 6.6%
Capital Goods 7.7%
Consumer Cyclical 7.6%
Consumer Staples 9.4%
Health Care 10.0%
Financial 13.6%
Technology 30.0%
</TABLE>
5
<PAGE>
ADVANTUS INDEX 500 FUND
INVESTMENTS IN SECURITIES
JULY 31, 2000
(Percentages of each investment category relate to total net assets.)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
------ --------------
<C> <S> <C>
COMMON STOCK (95.8%)
BASIC MATERIALS (2.8%)
Agriculture Products ( -- )
2,497 Archer-Daniels-Midland Company................... $ 23,409
-------------
Aluminum (.3%)
874 Alcan Aluminium, Ltd. (c)........................ 28,678
3,699 Alcoa, Inc....................................... 111,895
-------------
140,573
-------------
Chemicals (1.5%)
919 Air Products and Chemicals, Inc.................. 30,672
2,925 Dow Chemical Company............................. 84,094
4,480 E.I. Dupont De Nemours & Company................. 203,000
348 Eastman Chemical Company......................... 16,312
576 Ecolab, Inc...................................... 20,628
459 Engelhard Corporation............................ 8,291
136 FMC Corporation (b).............................. 8,194
155 Great Lakes Chemical Corporation................. 4,553
372 Hercules, Inc.................................... 5,557
367 International Flavors and Fragrances, Inc........ 9,817
5,468 Pharmacia Corporation............................ 299,373
772 PPG Industries, Inc.............................. 31,411
706 Praxair, Inc..................................... 27,931
873 Rohm & Haas Company.............................. 22,698
348 Sigma-Aldrich Corporation........................ 9,483
595 Union Carbide Corporation........................ 26,663
218 W.R. Grace & Company (b)......................... 2,153
-------------
810,830
-------------
Construction ( -- )
445 Vulcan Materials, Inc............................ 19,052
-------------
Iron and Steel (.1%)
315 Allegheny Technologies, Inc...................... 6,517
482 Bethlehem Steel Corporation (b).................. 2,229
388 Nucor Corporation................................ 14,647
292 USX Corporation.................................. 5,238
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
BASIC MATERIALS--CONTINUED
<C> <S> <C>
296 Worthington Industries, Inc...................... $ 3,126
-------------
31,757
-------------
Mining (.2%)
1,651 Barrick Gold Corporation (c)..................... 26,313
626 Freeport-McMoran, Inc. (b)....................... 5,634
1,056 Homestake Mining Company......................... 5,742
752 Inco, Ltd. (b) (c)............................... 11,045
644 Newmont Mining................................... 11,431
360 Phelps Dodge Corporation......................... 14,647
1,346 Placer Dome, Inc. (c)............................ 11,441
-------------
86,253
-------------
Paper and Forest (.7%)
232 Bemis Company, Inc............................... 7,975
154 Boise Cascade Corporation........................ 4,254
861 Fort James Corporation........................... 26,314
660 Georgia-Pacific Corporation...................... 16,376
2,236 International Paper Company...................... 76,024
2,369 Kimberly-Clark Corporation....................... 136,069
372 Louisiana-Pacific Corporation.................... 3,604
356 Mead Corporation................................. 9,033
129 Potlatch Corporation............................. 4,434
248 Temple Inland, Inc............................... 10,772
345 Westvaco Corporation............................. 9,466
1,044 Weyerhaeuser Company............................. 47,698
396 Willamette Industries, Inc....................... 12,004
-------------
364,023
-------------
CAPITAL GOODS (7.7%)
Aerospace/Defense (1.2%)
3,395 Allied Signal, Inc............................... 114,157
489 B.F. Goodrich Company............................ 17,451
3,884 Boeing Company................................... 190,316
893 General Dynamics Corporation..................... 50,399
1,659 Lockheed Martin Corporation...................... 46,659
</TABLE>
See accompanying notes to investments in securities.
6
<PAGE>
ADVANTUS INDEX 500 FUND
INVESTMENTS IN SECURITIES - CONTINUED
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
CAPITAL GOODS--CONTINUED
<C> <S> <C>
309 Northrop Grumman Corporation..................... $ 21,958
1,403 Raytheon Company (c)............................. 34,023
743 Rockwell International Corporation............... 26,051
661 Textron, Inc..................................... 37,718
2,011 United Technologies Corporation.................. 117,392
-------------
656,124
-------------
Containers-Metal/Glass ( -- )
125 Ball Corporation................................. 4,336
450 Crown Cork & Seal Company, Inc................... 6,272
567 Owens-Illinois, Inc. (b)......................... 7,548
-------------
18,156
-------------
Electrical Equipment (4.6%)
850 American Power Conversion Corporation (b)........ 21,622
418 Cooper Industries, Inc........................... 13,402
1,815 Emerson Electric Company......................... 110,828
42,348 General Electric Company (e)..................... 2,178,275
872 Molex, Inc....................................... 41,025
684 Sanmina Corporation (b).......................... 63,527
2,533 Solectron Corporation (b)........................ 102,112
703 Thermo Electron Corporation (b).................. 14,587
-------------
2,545,378
-------------
Engineering/Construction (.1%)
1,480 Caterpillar, Inc................................. 50,412
338 Fluor Corporation................................ 10,077
-------------
60,489
-------------
Machinery (.2%)
102 Briggs & Stratton Corporation.................... 3,589
1,040 Deere & Company.................................. 40,105
905 Dover Corporation................................ 41,460
727 Ingersoll Rand Company........................... 28,535
-------------
113,689
-------------
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
CAPITAL GOODS--CONTINUED
<C> <S> <C>
Manufacturing (1.3%)
501 Avery Dennison Corporation....................... $ 27,179
1,335 Illinois Tool Works, Inc......................... 76,429
380 Johnson Controls, Inc............................ 19,736
200 Millipore Corporation............................ 12,575
1,673 Minnesota Mining & Manufacturing Company......... 150,675
75 National Service Industries, Inc................. 1,533
451 Pall Corporation................................. 9,358
498 Parker Hannifin Corporation...................... 17,710
371 Sealed Air Corporation (b)....................... 18,689
7,253 Tyco International, Ltd. (c)..................... 388,035
-------------
721,919
-------------
Metal Fabrication ( -- )
175 Timken Company................................... 3,117
-------------
Office Equipment (.1%)
568 Lexmark International Group, Inc. (b)............ 25,595
1,079 Pitney Bowes, Inc................................ 37,360
-------------
62,955
-------------
Trucks and Parts (.1%)
175 Cummins Engine Company, Inc...................... 5,600
275 Navistar International Corporation (b)........... 9,814
348 Paccar, Inc...................................... 15,508
-------------
30,922
-------------
Waste Management (.1%)
739 Allied Waste Industries (b)...................... 6,882
2,653 Waste Management, Inc............................ 49,578
-------------
56,460
-------------
COMMUNICATION SERVICES (6.6%)
Cellular (.3%)
3,240 Nextel Communications, Inc. (b).................. 181,237
-------------
Telecommunication (2.6%)
3,772 Global Crossing, Ltd. (b) (c).................... 91,707
12,273 MCI Worldcom, Inc. (b)........................... 479,414
</TABLE>
See accompanying notes to investments in securities.
7
<PAGE>
ADVANTUS INDEX 500 FUND
INVESTMENTS IN SECURITIES - CONTINUED
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
COMMUNICATION SERVICES--CONTINUED
<C> <S> <C>
3,165 Qualcomm, Inc. (b)............................... $ 205,527
7,499 Qwest Communications International, Inc. (b)..... 351,984
3,737 Sprint Corporation............................... 133,131
3,896 Sprint Corporation PCS (b)....................... 215,254
-------------
1,477,017
-------------
Telephone (3.7%)
1,395 Alltel Corporation............................... 85,967
15,992 AT&T Corporation (b)............................. 494,753
11,744 Bell Atlantic Corporation........................ 551,968
8,073 Bellsouth Corporation............................ 321,406
520 Centurytel, Inc.................................. 15,242
14,531 SBC Communications, Inc.......................... 618,476
-------------
2,087,812
-------------
CONSUMER CYCLICAL (7.6%)
Auto (1.1%)
237 Cooper Tire and Rubber Company................... 2,651
625 Dana Corporation................................. 14,336
632 Danaher Corporation.............................. 32,192
2,410 Delphi Automotive Systems Corporation............ 35,698
327 Eaton Corporation................................ 22,175
5,180 Ford Motor Company............................... 241,194
2,291 General Motors Corporation....................... 130,444
594 Goodyear Tire & Rubber Company................... 11,843
1,246 Harley-Davidson, Inc............................. 55,914
375 ITT Industries, Inc.............................. 12,328
260 Snap-On, Inc..................................... 7,849
540 TRW, Inc......................................... 24,266
597 Visteon Corporation.............................. 8,358
-------------
599,248
-------------
Building Materials (.1%)
78 Armstrong Holdings, Inc.......................... 1,248
250 Centex Corporation............................... 5,984
175 Crane Company.................................... 3,850
200 Kaufman and Broad Home Corporation............... 3,912
1,886 Masco Corporation................................ 37,248
143 Owens Corning.................................... 786
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
CONSUMER CYCLICAL--CONTINUED
<C> <S> <C>
175 Pulte Corporation................................ $ 4,014
-------------
57,042
-------------
Distribution Durables ( -- )
690 Genuine Parts Company............................ 13,843
-------------
Hardware and Tools ( -- )
386 Black & Decker Corporation....................... 14,354
300 The Stanley Works................................ 7,856
-------------
22,210
-------------
Houseware (.6%)
1,183 Corning, Inc..................................... 276,748
772 Leggett & Platt, Inc............................. 13,510
275 Maytag Corporation............................... 9,316
331 Whirlpool Corporation............................ 14,295
-------------
313,869
-------------
Leisure (.1%)
300 Brunswick Corporation............................ 5,644
653 Hasbro, Inc...................................... 7,428
1,769 Mattel, Inc...................................... 19,570
-------------
32,642
-------------
Lodging-Hotel (.1%)
1,538 Hilton Hotels.................................... 15,764
1,005 Marriott International, Inc...................... 40,200
-------------
55,964
-------------
Photography/Imagery (.1%)
1,302 Eastman Kodak Company............................ 71,447
98 Polaroid Corporation............................. 1,776
-------------
73,223
-------------
Publishing (.5%)
399 Dow Jones and Company, Inc....................... 26,309
1,139 Gannett Company, Inc............................. 61,364
373 Knight-Ridder, Inc............................... 19,443
871 McGraw-Hill Companies, Inc....................... 51,770
228 Meredith Corporation............................. 7,253
615 R.H. Donnelley Corporation....................... 18,181
461 R.R. Donnelly & Sons Company..................... 10,257
</TABLE>
See accompanying notes to investments in securities.
8
<PAGE>
ADVANTUS INDEX 500 FUND
INVESTMENTS IN SECURITIES - CONTINUED
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
CONSUMER CYCLICAL--CONTINUED
<C> <S> <C>
761 The New York Times Company....................... $ 31,344
1,323 Tribune Company.................................. 42,997
-------------
268,918
-------------
Retail (4.6%)
275 American Greetings Corporation................... 4,675
514 Autozone, Inc. (b)............................... 11,758
625 Bed Bath & Beyond, Inc. (b)...................... 23,008
908 Best Buy Company, Inc. (b)....................... 66,057
804 Circuit City Stores, Inc......................... 18,442
392 Consolidated Stores Corporation (b).............. 4,679
1,876 Costco Wholesale Corporation (b)................. 61,087
366 Dillards, Inc.................................... 5,010
1,342 Dollar General Corporation....................... 24,659
933 Federated Department Stores (b).................. 22,450
3,649 Gap, Inc......................................... 130,680
316 Harcourt General, Inc............................ 17,439
9,874 Home Depot, Inc.................................. 510,979
1,057 J.C. Penney Company.............................. 17,044
1,963 K-Mart Corporation (b)........................... 13,741
1,350 Kohls Corporation (b)............................ 76,612
1,808 Limited, Inc..................................... 36,951
1,599 Lowes Companies, Inc............................. 67,458
1,377 May Department Stores Company.................... 32,704
1,126 Nike, Inc........................................ 49,262
498 Nordstrom, Inc................................... 8,715
1,262 Office Depot, Inc. (b)........................... 7,887
149 Reebok International, Ltd. (b)................... 2,514
1,479 Sears Roebuck Company............................ 44,185
1,987 Staples, Inc. (b)................................ 27,445
759 Tandy Corporation................................ 42,789
3,894 Target Corporation............................... 112,926
637 The Sherwin-Williams Company..................... 13,258
668 Tiffany & Company................................ 22,879
1,277 TJX Companies, Inc............................... 21,390
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
CONSUMER CYCLICAL--CONTINUED
<C> <S> <C>
866 Toys "R" Us (b).................................. $ 14,289
19,101 Wal-Mart Stores, Inc............................. 1,049,361
-------------
2,562,333
-------------
Service (.4%)
3,027 Cendant Corporation (b).......................... 38,783
700 Convergys Corporation (b)........................ 31,544
471 Harrahs Entertainment, Inc. (b).................. 11,804
1,247 Interpublic Group Companies, Inc................. 49,958
789 Omnicom Group.................................... 67,065
410 Quintiles Transnational Corporation (b).......... 6,432
475 Sabre Holdings Corporation (b)................... 11,608
309 Young & Rubicam, Inc............................. 17,458
-------------
234,652
-------------
Textiles ( -- )
263 Liz Clairborne, Inc.............................. 10,257
46 Russell Corporation.............................. 906
79 Springs Industries, Inc.......................... 2,548
425 V.F. Corporation................................. 9,350
-------------
23,061
-------------
CONSUMER STAPLES (9.4%)
Beverage (2.2%)
164 Adolph Coors Company............................. 10,332
1,968 Anheuser-Busch Companies, Inc.................... 158,424
300 Brown-Forman Corporation (c)..................... 15,000
6,143 PepsiCo, Inc..................................... 281,426
10,593 The Coca-Cola Company............................ 649,483
1,790 Coca-Cola Enterprises, Inc....................... 34,346
1,926 The Seagram Company, Ltd. (c).................... 107,976
-------------
1,256,987
-------------
Broadcasting (.4%)
1,504 Clear Channel Communications, Inc. (b)........... 114,586
3,845 Comcast Corporation (b).......................... 130,790
-------------
245,376
-------------
</TABLE>
See accompanying notes to investments in securities.
9
<PAGE>
ADVANTUS INDEX 500 FUND
INVESTMENTS IN SECURITIES - CONTINUED
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
CONSUMER STAPLES--CONTINUED
<C> <S> <C>
Entertainment (2.3%)
2,541 Carnival Corporation............................. $ 47,485
8,877 The Walt Disney Company.......................... 343,429
5,652 Time Warner, Inc................................. 433,438
6,537 Viacom, Inc. (b)................................. 433,485
-------------
1,257,837
-------------
Food (1.1%)
1,239 Bestfoods........................................ 86,265
1,795 Campbell Soup Company............................ 47,567
2,087 Conagra, Inc..................................... 42,653
1,238 General Mills, Inc............................... 42,556
1,476 H.J. Heinz Company............................... 58,948
615 Hershey Foods Corporation........................ 28,444
1,701 Kellogg Company.................................. 44,120
595 Quaker Oats Company.............................. 40,014
1,241 Ralston Purina Company........................... 25,053
3,725 Sara Lee Corporation............................. 68,680
2,440 Unilever NV (c).................................. 107,970
515 W.M. Wrigley JR Company.......................... 39,140
-------------
631,410
-------------
Food & Health (.1%)
1,466 Sysco Corporation................................ 57,724
-------------
Household Products (1.2%)
951 Clorox Company................................... 39,288
2,489 Colgate-Palmolive Company........................ 138,606
4,400 Gillette Company................................. 128,425
1,053 Newell Rubbermaid, Inc........................... 28,365
661 Pactiv Corporation (b)........................... 6,114
5,643 Procter & Gamble Company......................... 320,946
150 Tupperware Corporation........................... 2,916
-------------
664,660
-------------
Personal Care (.1%)
247 Alberto-Culver Company........................... 7,503
975 Avon Products, Inc............................... 38,695
-------------
46,198
-------------
Restaurants (.4%)
469 Darden Restaurants, Inc.......................... 7,651
5,707 McDonalds Corporation............................ 179,770
817 Starbucks Corporation (b)........................ 30,637
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
CONSUMER STAPLES--CONTINUED
<C> <S> <C>
571 Tricon Global Restaurants, Inc. (b).............. $ 13,811
431 Wendy's International, Inc....................... 7,300
-------------
239,169
-------------
Retail (.8%)
1,782 Albertsons, Inc.................................. 53,794
1,641 CVS Corporation.................................. 64,717
70 Great Atlantic & Pacific Tea Company............. 1,006
3,478 Kroger Company (b)............................... 71,951
74 Longs Drug Stores Corporation.................... 1,498
2,161 Safeway, Inc. (b)................................ 97,380
520 Supervalu, Inc................................... 9,197
4,315 Walgreen Company................................. 134,574
549 Winn-Dixie Stores, Inc........................... 7,858
-------------
441,975
-------------
Service (.3%)
2,700 Automatic Data Processing, Inc................... 133,819
542 Ceridian Corporation (b)......................... 12,331
226 Deluxe Corporation............................... 4,859
-------------
151,009
-------------
Tobacco (.5%)
629 Fortune Brands, Inc.............................. 14,153
1,349 Nabisco Group Holdings Corporation............... 35,749
9,747 Philip Morris Companies, Inc..................... 246,112
660 UST, Inc......................................... 9,570
-------------
305,584
-------------
ENERGY (5.1%)
Oil (3.9%)
403 Amerada Hess..................................... 24,382
2,815 Chevron Corporation.............................. 222,385
2,582 Conoco, Inc...................................... 59,547
14,912 Exxon Mobile Corporation......................... 1,192,959
1,533 Occidental Petroleum Corporation................. 31,043
1,125 Phillips Petroleum Company....................... 57,164
9,196 Royal Dutch Petroleum Company (c)................ 535,667
</TABLE>
See accompanying notes to investments in securities.
10
<PAGE>
ADVANTUS INDEX 500 FUND
INVESTMENTS IN SECURITIES - CONTINUED
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
ENERGY--CONTINUED
<C> <S> <C>
977 Union Oil Company of California.................. $ 29,554
1,280 USX-Marathon Group............................... 31,120
-------------
2,183,821
-------------
Oil & Gas (1.2%)
1,029 Anadarko Petroleum Corporation................... 49,199
507 Apache Finance Property.......................... 25,223
315 Ashland, Inc..................................... 10,375
1,362 Baker Hughes, Inc................................ 47,159
866 Burlington Resources, Inc........................ 28,253
120 Eastern Enterprises.............................. 7,515
1,863 Halliburton Company.............................. 85,931
425 Kerr-McGee Corporation........................... 23,322
164 McDermott International, Inc. (b)................ 1,220
400 Rowan Companies, Inc. (b)........................ 10,100
2,443 Schlumberger, Ltd................................ 180,629
400 Sunoco, Inc...................................... 9,750
2,357 Texaco, Inc...................................... 116,524
639 Tosco Corporation................................ 16,934
929 Transocean Sedco Forex, Inc...................... 45,986
-------------
658,120
-------------
FINANCIAL (13.6%)
Auto Finance (.2%)
3,826 Fleet Boston Financial Corporation............... 137,019
-------------
Banks (4.1%)
1,637 AmSouth Bancorporation........................... 27,522
7,107 Bank Of America Corporation...................... 336,717
4,918 Bank One Corporation............................. 156,454
1,443 BB&T Corporation................................. 35,985
5,305 Chase Manhattan Corporation...................... 263,592
695 Comerica Bank.................................... 35,445
2,058 Fifth Third BanCorp.............................. 85,021
3,131 First Bank System, Inc........................... 60,076
4,136 First Union Corporation.......................... 106,761
4,103 Firstar Bank Milwaukee........................... 81,034
1,008 Huntington Bancshares, Inc....................... 15,813
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
FINANCIAL--CONTINUED
<C> <S> <C>
770 J.P. Morgan & Company............................ $ 102,795
1,787 KeyCorp.......................................... 31,384
2,060 Mellon Bank NA................................... 77,636
2,539 National City BanCorp............................ 45,067
989 Northern Trust Corporation....................... 74,051
569 Old Kent Financial Corporation................... 15,292
1,206 PNC Financial Services Group..................... 61,355
871 Regions Financial Corporation.................... 17,366
645 SouthTrust Corporation........................... 15,883
711 State Street Corporation......................... 71,367
676 Summit BanCorp................................... 16,604
1,293 Suntrust Banks, Inc.............................. 61,902
1,143 Synovus Financial Corporation.................... 20,574
3,158 The Bank of New York Company, Inc................ 147,834
526 Union Planters Corporation....................... 15,090
901 Wachovia Corporation............................. 49,555
6,894 Wells Fargo & Company............................ 284,808
-------------
2,312,983
-------------
Consumer Finance (1.3%)
5,760 American Express Company......................... 326,520
3,024 Associates First Capital Corporation............. 79,178
876 Capital One Financial Corporation................ 51,356
1,000 CIT Group, Inc................................... 18,500
1,989 Household International, Inc..................... 88,636
3,438 MBNA Corporation................................. 114,743
607 SLM Holding Corporation.......................... 26,139
-------------
705,072
-------------
503 Countrywide Credit Industries, Inc............... 17,699
-------------
Finance-Diversified (2.7%)
1,098 American General Corporation..................... 73,223
14,460 CitiGroup, Inc................................... 1,020,334
</TABLE>
See accompanying notes to investments in securities.
11
<PAGE>
ADVANTUS INDEX 500 FUND
INVESTMENTS IN SECURITIES - CONTINUED
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
FINANCIAL--CONTINUED
<C> <S> <C>
2,981 Federal Home Loan Mortgage....................... $ 117,563
4,296 Federal National Mortgage Association............ 214,263
470 MGIC Investment Corporation...................... 26,702
1,000 Stilwell Financial, Inc. (b)..................... 44,063
-------------
1,496,148
-------------
Insurance (3.2%)
635 Aetna, Inc....................................... 35,243
1,182 Aflac, Inc....................................... 61,390
3,154 Allstate Corporation............................. 86,932
9,960 American International Group..................... 873,368
1,040 AON Corporation.................................. 37,440
782 Chubb Corporation................................ 57,868
749 Cigna Corporation................................ 74,806
629 Cincinnati Financial Corporation................. 23,745
1,353 Conseco Financing Trust II....................... 10,655
885 Hartford Financial Services Group, Inc........... 56,861
465 Jefferson-Pilot Corporation...................... 28,365
768 Lincoln National Corporation..................... 33,504
471 Loews Corporation................................ 29,555
1,186 Marsh and McLennan Companies, Inc................ 144,692
443 MBIA, Inc........................................ 24,670
325 Progressive Corporation.......................... 21,856
631 Providian Financial Corporation.................. 64,323
477 Safeco Corporation............................... 11,001
909 The St. Paul Companies, Inc...................... 40,394
484 Torchmark Corporation............................ 12,040
966 Unumprovident Corporation........................ 22,218
275 Wellpoint Health Networks, Inc. (b).............. 23,977
-------------
1,774,903
-------------
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
FINANCIAL--CONTINUED
<C> <S> <C>
Investment Bankers/Brokers (1.9%)
504 Bear Stearns & Company, Inc...................... $ 27,153
437 Block Financial Corporation...................... 13,984
1,005 Franklin Resources, Inc.......................... 36,054
534 Lehman Brothers Holdings, Inc.................... 60,008
1,647 Merrill Lynch & Company, Inc..................... 212,875
4,839 Morgan Stanley Dean Witter Discover Company...... 441,559
634 Paine Webber Group, Inc.......................... 43,905
532 T. Rowe Price Associates , Inc................... 21,746
5,775 The Charles Schwab Corporation................... 208,622
-------------
1,065,906
-------------
Savings and Loans (.2%)
800 Charter One Financial, Inc....................... 17,250
618 Golden West Financial Corporation................ 28,428
2,265 Washington Mutual, Inc........................... 72,763
-------------
118,441
-------------
HEALTH CARE (10.0%)
Biotechnology (.7%)
4,381 Amgen, Inc. (b).................................. 284,491
668 Biogen, Inc. (b)................................. 35,404
916 PE Corp - PE Biosystems Group.................... 79,864
-------------
399,759
-------------
Drugs (6.3%)
5,600 American Home Products Corporation............... 297,150
8,408 Bristol-Myers Squibb Company..................... 417,247
1,150 Cardinal Health, Inc............................. 84,525
4,877 Eli Lilly & Company.............................. 506,598
895 Medimmune, Inc. (b).............................. 53,253
9,825 Merck & Company, Inc............................. 704,330
26,906 Pfizer, Inc...................................... 1,160,321
6,300 Schering Plough Corporation...................... 272,081
</TABLE>
See accompanying notes to investments in securities.
12
<PAGE>
ADVANTUS INDEX 500 FUND
INVESTMENTS IN SECURITIES - CONTINUED
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
<C> <S> <C>
425 Watson Pharmaceuticals, Inc. (b)................. $ 23,481
-------------
3,518,986
-------------
Health Care-Diversified (1.6%)
6,593 Abbott Laboratories.............................. 274,434
584 Allergan, Inc.................................... 39,092
1,616 Healthsouth Corporation (b)...................... 9,595
5,968 Johnson & Johnson................................ 555,397
1,286 Tenet Healthcare Corporation..................... 39,143
-------------
917,661
-------------
Hospital Management (.1%)
2,402 Columbia/HCA Healthcare Corporation.............. 81,668
-------------
Managed Care (.2%)
357 HCR Manor Care, Inc. (b)......................... 3,525
644 Humana, Inc. (b)................................. 4,709
1,151 McKesson HBOC, Inc............................... 27,984
754 Unitedhealth Group, Inc.......................... 61,687
-------------
97,905
-------------
Medical Products/Supplies (1.1%)
454 Alza Corporation (b)............................. 29,397
257 Bausch & Lomb, Inc............................... 15,982
1,293 Baxter International, Inc........................ 100,531
1,018 Becton Dickinson & Company....................... 25,705
501 Biomet, Inc...................................... 22,420
1,742 Boston Scientific Corporation (b)................ 28,852
227 C.R. Baird, Inc.................................. 11,364
1,266 Guidant Corporation (b).......................... 71,371
200 Mallinckrodt Group, Inc.......................... 9,150
5,122 Medtronic, Inc................................... 261,542
374 St. Jude Medical, Inc. (b)....................... 15,428
-------------
591,742
-------------
TECHNOLOGY (30.0%)
362 Adaptec, Inc. (b)................................ 8,960
3,070 ADC Telecommunications, Inc. (b)................. 128,748
527 Adobe Systems, Inc............................... 60,342
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
<C> <S> <C>
654 Advanced Micro Devices (b)....................... $ 47,047
1,944 Agilent Technologies, Inc. (b)................... 79,218
856 Altera Corporation (b)........................... 84,049
9,886 America Online, Inc. (b)......................... 527,047
1,500 Analog Devices, Inc. (b)......................... 100,313
358 Andrew Corporation (b)........................... 10,091
1,438 Apple Computer, Inc. (b)......................... 73,068
3,460 Applied Materials, Inc. (b)...................... 262,528
274 Autodesk, Inc.................................... 5,925
985 BMC Software, Inc. (b)........................... 18,592
990 Broadcom Corporation (b)......................... 222,008
710 Cabletron Systems, Inc. (b)...................... 18,549
29,802 Cisco Systems, Inc. (b).......................... 1,950,168
697 Citrix Systems, Inc. (b)......................... 10,629
7,265 Compaq Computer Corporation...................... 203,874
2,524 Computer Associates International, Inc........... 62,627
744 Computer Sciences Corporation (b)................ 46,500
1,501 Compuware Corporation (b)........................ 12,008
680 Comverse Technology, Inc. (b).................... 59,670
954 Conexant Systems, Inc. (b)....................... 30,528
11,001 Dell Computer Corporation (b).................... 483,356
1,992 Electronic Data Systems Corporation.............. 85,656
9,292 EMC Corporation (b).............................. 790,982
528 Equifax, Inc..................................... 12,474
1,762 First Data Corporation........................... 81,162
1,407 Gateway, Inc. (b)................................ 77,649
4,311 Hewlett-Packard Company.......................... 470,707
1,268 IMS Health, Inc.................................. 22,903
28,658 Intel Corporation................................ 1,912,922
7,579 International Business Machines Corporation...... 852,164
4,200 JDS Uniphase Corporation (b)..................... 496,125
816 KLA-Tencor Corporation (b)....................... 43,452
</TABLE>
See accompanying notes to investments in securities.
13
<PAGE>
ADVANTUS INDEX 500 FUND
INVESTMENTS IN SECURITIES - CONTINUED
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
<C> <S> <C>
1,334 Linear Technology Corporation.................... $ 73,704
1,322 LSI Logic Corporation (b)........................ 44,783
13,959 Lucent Technologies, Inc......................... 610,706
1,191 Maxim Integrated Products (b).................... 78,680
367 Mercury Interactive Corporation (b).............. 36,430
2,402 Micron Technology, Inc. (b)...................... 195,763
22,523 Microsoft Corporation (b)........................ 1,572,387
9,226 Motorola, Inc.................................... 305,035
762 National Semiconductor Corporation (b)........... 27,575
429 NCR Coporation (b)............................... 15,203
1,354 Network Appliance, Inc. (b)...................... 116,698
12,675 Nortel Networks Corporation (c).................. 942,703
1,351 Novell, Inc. (b)................................. 13,003
561 Novellus Systems, Inc. (b)....................... 30,259
12,201 Oracle Systems (b)............................... 917,363
2,457 Palm, Inc. (b)................................... 95,823
1,121 Parametric Technology Corporation (b)............ 11,210
1,547 Paychex, Inc..................................... 70,775
1,092 Peoplesoft, Inc. (b)............................. 23,819
225 Perkin Elmer, Inc................................ 14,386
300 Sapient Corporation (b).......................... 34,125
700 Scientific-Atlanta, Inc.......................... 53,900
959 Seagate Technology (b)........................... 48,609
927 Siebel Systems, Inc. (b)......................... 134,415
6,870 Sun Microsystems, Inc. (b)....................... 724,356
225 Tektronix, Inc. (b).............................. 13,838
1,788 Tellabs, Inc. (b)................................ 116,220
760 Teradyne, Inc. (b)............................... 48,165
7,074 Texas Instruments, Inc........................... 415,155
257 Thomas and Betts Corporation..................... 5,012
1,280 Unisys Corporation (b)........................... 12,560
1,668 Veritas DGC, Inc. (b)............................ 170,032
415 W.W. Grainger, Inc............................... 13,176
2,848 Xerox Corporation................................ 42,364
1,428 Xilinx, Inc. (b)................................. 107,189
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
<C> <S> <C>
2,340 Yahoo!, Inc. (b)................................. $ 301,129
-------------
16,788,591
-------------
TRANSPORTATION (.6%)
Air Freight (.1%)
1,188 FedEx Corporation (b)............................ 47,075
-------------
Airlines (.2%)
558 AMR Corporation (b).............................. 18,449
474 Delta Air Lines, Inc............................. 25,448
2,041 Southwest Airlines Company....................... 48,219
317 US Airways Group, Inc. (b)....................... 12,442
-------------
104,558
-------------
Railroads (.3%)
1,830 Burlington Northern Santa Fe Corporation......... 44,721
870 CSX Corporation.................................. 21,587
1,597 Norfolk Southern Railway Company................. 29,744
1,004 Union Pacific Corporation........................ 43,360
-------------
139,412
-------------
Trucking ( -- )
175 Ryder System, Inc................................ 3,653
-------------
UTILITIES (2.4%)
Electric Companies (1.6%)
1,834 AES Corporation (b).............................. 98,004
609 Ameren Corporation............................... 22,038
1,379 American Electric Power Company, Inc............. 45,248
709 Carolina Power & Light Company................... 23,707
606 Cinergy Corporation.............................. 15,756
882 Consolidated Edison Company of New York, Inc..... 26,736
664 Constellation Energy Group....................... 22,120
400 Consumers Energy Company......................... 10,225
1,057 Dominion Resources, Inc.......................... 48,027
544 DTE Energy Company............................... 17,068
1,625 Duke Energy Corporation.......................... 100,242
1,342 Edison International............................. 26,421
</TABLE>
See accompanying notes to investments in securities.
14
<PAGE>
ADVANTUS INDEX 500 FUND
INVESTMENTS IN SECURITIES - CONTINUED
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
UTILITIES--CONTINUED
<C> <S> <C>
996 Entergy Corporation.............................. $ 27,017
935 Firstenergy Corporation.......................... 23,843
436 Florida Progress Corporation..................... 21,364
796 FPL Group, Inc................................... 38,407
448 GPU, Inc......................................... 11,872
513 New Century Energies, Inc........................ 17,538
732 Niagara Mohawk Holdings, Inc. (b)................ 9,745
1,606 Pacific Gas and Electric Company................. 41,555
725 PECO Energy Company.............................. 30,948
375 Pinnacle West Capital Corporation................ 14,836
538 PPL Corporationoration........................... 14,526
871 Public Service Enterprise Group, Inc............. 29,287
1,213 Reliant Energy, Inc.............................. 40,636
2,779 Southern Company................................. 67,912
1,128 TXU Electric & Gas............................... 35,250
<CAPTION>
MARKET
SHARES VALUE(A)
-------------------------------------------------------------------------------
UTILITIES--CONTINUED
<C> <S> <C>
762 Unicom Corporation............................... $ 31,290
-------------
911,618
-------------
Natural Gas (.8%)
949 Coastal Corporation.............................. 54,805
361 Columbia Energy Group............................ 24,638
1,014 El Paso Energy Corporation....................... 49,052
3,169 Enron Corporation................................ 233,318
209 Nicor, Inc....................................... 7,250
137 Oneok, Inc....................................... 3,656
158 Peoples Energy Corporation....................... 5,007
807 Sempra Energy.................................... 15,131
1,932 Williams Companies, Inc.......................... 80,661
-------------
473,518
-------------
Power Products-Industrial ( -- )
587 Northern States Power Company.................... 12,951
-------------
Total common stock (cost: $37,920,408)............................ 53,605,315
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL/SHARES
----------------
<C> <S> <C> <C> <C>
SHORT-TERM SECURITIES (4.3%)
6,214 Federated Money Market Obligations Trust - Prime
Obligation Fund, current rate 6.460%................. 6,214
2,015,000 Ford Motor Credit Corporation..... 6.536% 08/11/2000 2,010,998
410,015 Provident Institutional Fund--Tempfund Portfolio,
current rate 6.53%................................... 410,015
--------------
Total short-term securities (cost: $2,427,628)........ 2,427,227
--------------
Total investments in securities
(cost: $40,348,036)(d)............................... $ 56,032,542
==============
</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 4.1% of net assets in foreign securities as of July 31, 2000.
(d) At July 31, 2000 the cost of securities for federal income tax purposes was
$40,964,111. The aggregate unrealized appreciation and depreciation of
investments in securities based on this cost were:
<TABLE>
<S> <C>
Gross unrealized appreciation.......... $ 18,841,146
Gross unrealized depreciation.......... (3,772,715)
--------------
Net unrealized appreciation............ $ 15,068,431
==============
</TABLE>
(e) Partially pledged as initial margin deposit on open stock index futures
purchase contracts (see note 6 to the financial statements).
15
<PAGE>
ADVANTUS INDEX 500 FUND
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 2000
<TABLE>
<S> <C>
ASSETS
Investments in securities, at market value - see accompanying
schedule for detailed listing
(identified cost: $40,348,036).................................. $56,032,542
Cash in bank on demand deposit................................... 5,049
Receivable for Fund shares sold.................................. 41,177
Receivable for investment securities sold........................ 24,273
Accrued interest receivable...................................... 2,337
Dividends receivable............................................. 32,569
Organizational costs (note 5).................................... 26,647
Variation margin receivable (note 6)............................. 10,350
-----------
Total assets................................................. 56,174,944
-----------
LIABILITIES
Payable for investment securities purchased...................... 7,780
Payable for Fund shares redeemed................................. 122,188
Payable to Adviser............................................... 76,725
-----------
Total liabilities............................................ 206,693
-----------
Net assets applicable to outstanding capital stock............... $55,968,251
===========
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.......................................................... $ 29,788
Additional paid-in capital..................................... 41,126,271
Undistributed net investment income............................ 6,115
Accumulated net realized losses from investments............... (795,529)
Unrealized appreciation on investments......................... 15,601,606
-----------
Total - representing net assets applicable to outstanding
capital stock................................................ $55,968,251
===========
Net assets applicable to outstanding Class A shares.............. $24,723,061
===========
Net assets applicable to outstanding Class B shares.............. $28,076,967
===========
Net assets applicable to outstanding Class C shares.............. $ 3,168,223
===========
Shares outstanding and net asset value per share:
Class A - Shares outstanding 1,306,239......................... $ 18.93
===========
Class B - Shares outstanding 1,502,714......................... $ 18.68
===========
Class C - Shares outstanding 169,936........................... $ 18.64
===========
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
ADVANTUS INDEX 500 FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2000
<TABLE>
<S> <C>
Investment income:
Interest....................................................... $ 66,441
Dividends...................................................... 655,413
-----------
Total investment income...................................... 721,854
-----------
Expenses (note 4):
Investment advisory fee........................................ 193,328
Rule 12b-1 - Class A........................................... 65,215
Rule 12b-1 - Class B........................................... 275,184
Rule 12b-1 - Class C........................................... 32,568
Administrative services fee.................................... 74,400
Amortization of organizational costs........................... 17,764
Transfer agent and shareholder services fee.................... 197,207
Custodian fees................................................. 20,889
Auditing and accounting services............................... 21,358
Legal fees..................................................... 11,303
Directors' fees................................................ 1,050
Registration fees.............................................. 37,879
Printing and shareholder reports............................... 44,340
Insurance...................................................... 3,634
S&P Licensing fee.............................................. 6,942
Other.......................................................... 13,248
-----------
Total expenses............................................... 1,016,309
Less fees and expenses waived or absorbed by Adviser and
Distributor:
Class A distribution fees...................................... (26,086)
Other waived fees.............................................. (302,175)
-----------
Total fees and expenses waived or absorbed................... (328,261)
-----------
Total net expenses........................................... 688,048
-----------
Investment income - net...................................... 33,806
-----------
Realized and unrealized gains (losses) on investments:
Net realized losses on investments (note 3).................... (534,922)
Net change in unrealized appreciation or depreciation on
investments.................................................. 4,409,207
-----------
Net gains on investments..................................... 3,874,285
-----------
Net increase in net assets resulting from operations............. $ 3,908,091
===========
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
ADVANTUS INDEX 500 FUND
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED JULY 31, 2000 AND 1999
<TABLE>
<CAPTION>
2000 1999
----------- -----------
<S> <C> <C>
Operations:
Investment income - net.............. $ 33,806 $ 93,548
Net realized gain (loss) on
investments........................ (534,922) 211,208
Net change in unrealized appreciation
or depreciation on investments..... 4,409,207 6,581,538
----------- -----------
Increase in net assets resulting
from operations................ 3,908,091 6,886,294
----------- -----------
Distributions to shareholders from:
Investment income - net:
Class A............................ (43,000) (121,500)
Class B............................ - (3,785)
Class C............................ - (15)
Net realized gains on investments:
Class A............................ (209,841) (83,008)
Class B............................ (214,072) (69,737)
Class C............................ (25,736) (8,298)
----------- -----------
Total distributions.............. (492,649) (286,343)
----------- -----------
Capital share transactions (notes 4 and
7):
Proceeds from sales:
Class A............................ 4,922,687 10,263,823
Class B............................ 6,419,725 12,218,978
Class C............................ 1,221,043 1,887,095
Proceeds from issuance of shares as a
result of reinvested dividends:
Class A............................ 162,568 116,444
Class B............................ 211,887 73,336
Class C............................ 25,534 8,291
Payments for redemption of shares:
Class A............................ (7,515,763) (4,003,764)
Class B............................ (4,330,082) (2,766,448)
Class C............................ (1,175,301) (837,889)
----------- -----------
Increase (decrease) in net assets
from capital share
transactions................... (57,702) 16,959,866
----------- -----------
Total increase in net assets..... 3,357,740 23,559,817
Net assets at beginning of year........ 52,610,511 29,050,694
----------- -----------
Net assets at end of year (including
undistributed net investment income
of $6,115 and $0, respectively)...... $55,968,251 $52,610,511
=========== ===========
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
ADVANTUS INDEX 500 FUND
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2000
(1) ORGANIZATION
Advantus Index 500 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 investment results that correspond, generally, before sales
charges and other Fund expenses, to the aggregate price and yield performance of
the common stocks included in the S&P 500 Index.
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 a 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 by procedures adopted by the Board of
Directors. Short-term securities are valued at market.
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.
FUTURES TRANSACTION
To gain exposure to or protect itself from market changes, the Fund may buy
and sell financial futures contracts traded on any U.S. or foreign exchange. The
Fund also may buy and write put and call options on these futures contracts.
Risks of entering into futures contracts and related options include the
possibility of an illiquid market and that a change in the value of the contract
or option may correlate with changes in the value of the underlying securities.
19
<PAGE>
ADVANTUS INDEX 500 FUND
NOTES TO FINANCIAL STATEMENTS - CONTINUED
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
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 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 by $15,309, decrease accumulated net
realized losses by $2,455, and decrease additional paid-in capital by $17,764.
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 year ended July 31, 2000, purchases of securities and proceeds from
sales, other than temporary investments in short-term securities aggregated
$23,633,742 and $26,484,165 respectively.
(4) EXPENSES AND RELATED PARTY TRANSACTIONS
The Fund has an investment advisory agreement with Advantus Capital
Management, Inc. (Advantus Capital) a wholly owned subsidiary of Minnesota Life
Insurance Company (Minnesota Life). Under the agreement, Advantus Capital acts
as investment adviser and manager for the Fund. The fee for investment
management and advisory services is based on the average daily net assets of the
Fund at the annual rate of .34 percent. The Fund has engaged PFPC Global Fund
Services to act as its transfer agent, dividend disbursing agent and redemption
agent and bears the expenses of such services.
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 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 $26,086 for the period ended
July 31, 2000.
20
<PAGE>
ADVANTUS INDEX 500 FUND
NOTES TO FINANCIAL STATEMENTS - CONTINUED
(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 in a shareholder and administrative services agreement
with Minnesota Life. Under this agreement the Fund pays a shareholder services
fee, equal to $5 per shareholder account annually, to Minnesota Life for
shareholder services which Minnesota Life provides. The Fund also pays Minnesota
Life an administrative services fee is equal to $6,200 per month 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.
Advantus Capital directly incurs and pays the above operating expenses and
the Fund in turn reimburses Advantus Capital. During the period ended July 31,
2000, Advantus Capital voluntarily agreed to absorb $302,175 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 $114,832.
As of July 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................................. 505,263 38.7%
Class B................................. 5,178 0.3%
Class C................................. 5,168 3.0%
</TABLE>
Legal fees were paid to a law firm of which the Fund's secretary is a
partner in the amount of $7,850.
(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) STOCK INDEX FUTURES CONTRACTS
Investments in securities as of July 31, 2000, included securities valued at
$1,805,456 that were used as collateral to cover initial margin deposits on six
open September S&P 500 Futures purchase contracts. The market value of the open
purchase contracts as of July 31, 2000 was $2,158,350 with an unrealized loss of
$82,900.
(7) CAPITAL SHARE TRANSACTIONS
Transactions in shares for the years ended July 31, 2000, and 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....................................... 265,563 631,958 350,143 751,334 67,173 117,017
Issued for reinvested distributions........ 8,595 7,331 11,262 4,721 1,366 531
Redeemed................................... (404,873) (245,455) (230,884) (172,144) (63,943) (52,929)
-------- -------- -------- -------- ------- -------
(130,715) 393,834 130,521 583,911 4,596 64,619
======== ======== ======== ======== ======= =======
</TABLE>
21
<PAGE>
ADVANTUS INDEX 500 FUND
NOTES TO FINANCIAL STATEMENTS - CONTINUED
(8) 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
JANUARY 31,
YEAR ENDED JULY 31, 1997(D) TO
------------------------- JULY 31,
2000 1999 1998 1997
------- ------- ------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of year..... $ 17.74 $ 15.06 $ 12.89 $10.68
------- ------- ------- ------
Income from investment operations:
Net investment income (loss)......... .10 .11 .10 .06
Net gains on securities (both
realized and unrealized)........... 1.27 2.74 2.21 2.21
------- ------- ------- ------
Total from investment operations... 1.37 2.85 2.31 2.27
------- ------- ------- ------
Less distributions:
Dividends from net investment
income............................. (.03) (.10) (.12) (.06)
Distributions from net realized
gains.............................. (.15) (.07) (.02) -
------- ------- ------- ------
Total distributions................ (.18) (.17) (.14) (.06)
------- ------- ------- ------
Net asset value, end of year........... $ 18.93 $ 17.74 $ 15.06 $12.89
======= ======= ======= ======
Total return (a)....................... 7.67% 19.13% 18.19% 21.29%
Net assets, end of year
(in thousands)....................... $24,723 $25,498 $15,711 $8,176
Ratio of expenses to average daily net
assets (c)........................... .75% .75% .74% .70%(b)
Ratio of net investment income (loss)
to average daily net assets (c)...... .52% .64% .83% 1.19%(b)
Portfolio turnover rate (excluding
short-term securities)............... 42.6% 25.3% 59.2% 5.8%
</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
charges. For periods less than one year, total return presented has not
been annualized.
(b) Adjusted to an annual basis.
(c) The Fund's Distributor and Adviser voluntarily waived and absorbed
$328,261, $255,026, $181,190 and $50,025 in expenses for the the years
ended July 31, 2000, 1999, and 1998 and the period from January 31, 1997
(commencement of operations) 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 1.38%,1.43%, 1.81% and 2.29%,
respectively, and the ratio of net investment income (loss) to average
daily net assets would have been (.11)%, (.04)%, (.24)% and (.40)%,
respectively. If Class B shares had been charged for these expenses, the
ratio of expenses to average daily net assets would have been 2.13%, 2.16%,
2.51% and 2.99%, respectively, and the ratio of net investment income
(loss)to average daily net assets would have been (.86)%, (.77)%, (.97)%
and (1.10)%, respectively. If Class C shares had been charged for these
expenses, the ratio of expenses to average daily net assets would have been
2.13%, 2.16%, 2.51% and 2.99%, respectively, and the ratio of net
investment income (loss) to average daily net assets would have been
(.86)%, (.77)%, (.97)% and (1.10)%, respectively.
(d) Commencement of operations.
22
<PAGE>
ADVANTUS INDEX 500 FUND
NOTES TO FINANCIAL STATEMENTS - CONTINUED
<TABLE>
<CAPTION>
CLASS B CLASS C
-------------------------------------------- -----------------------------------------
PERIOD FROM PERIOD FROM
JANUARY 31, JANUARY 31,
YEAR ENDED JULY 31, 1997(D) TO YEAR ENDED JULY 31, 1997(D) TO
------------------------------- JULY 31, ---------------------------- JULY 31,
2000 1999 1998 1997 2000 1999 1998 1997
--------- --------- --------- ----------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year..... $ 17.64 $ 15.01 $ 12.87 $10.69 $17.60 $14.97 $12.85 $10.69
------- ------- ------- ------ ------ ------ ------ ------
Income from investment operations:
Net investment income (loss)......... (.06) (.03) .02 .01 (.06) (.03) .01 .01
Net gains on securities (both
realized and unrealized)........... 1.25 2.73 2.17 2.21 1.25 2.73 2.16 2.18
------- ------- ------- ------ ------ ------ ------ ------
Total from investment operations... 1.19 2.70 2.19 2.22 1.19 2.70 2.17 2.19
------- ------- ------- ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment
income............................. - - (.03) (.04) - - (.03) (.03)
Distributions from net realized
gains.............................. (.15) (.07) (.02) - (.15) (.07) (.02) -
------- ------- ------- ------ ------ ------ ------ ------
Total distributions................ (.15) (.07) (.05) (.04) (.15) (.07) (.05) (.03)
------- ------- ------- ------ ------ ------ ------ ------
Net asset value, end of year........... $ 18.68 $ 17.64 $ 15.01 $12.87 $18.64 $17.60 $14.97 $12.85
======= ======= ======= ====== ====== ====== ====== ======
Total return (a)....................... 6.71% 18.10% 17.17% 20.77% 6.73% 18.03% 17.09% 20.44%
Net assets, end of year
(in thousands)....................... $28,077 $24,202 $11,832 $1,962 $3,168 $2,910 $1,508 $ 266
Ratio of expenses to average daily net
assets (c)........................... 1.60% 1.60% 1.60% 1.60%(b) 1.60% 1.60% 1.60% 1.60%(b)
Ratio of net investment income (loss)
to average daily net assets (c)...... (.33)% (.21)% (.06)% .29%(b) (.33)% (.21)% (.06)% .29%(b)
Portfolio turnover rate (excluding
short-term securities)............... 42.6% 25.3% 59.2% 5.8% 42.6% 25.3% 59.2% 5.8%
</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
charges. For periods less than one year, total return presented has not
been annualized.
(b) Adjusted to an annual basis.
(c) The Fund's Distributor and Adviser voluntarily waived and absorbed
$328,261, $255,026, $181,190 and $50,025 in expenses for the the years
ended July 31, 2000, 1999, and 1998 and the period from January 31, 1997
(commencement of operations) 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 1.38%,1.43%, 1.81% and 2.29%,
respectively, and the ratio of net investment income (loss) to average
daily net assets would have been (.11)%, (.04)%, (.24)% and (.40)%,
respectively. If Class B shares had been charged for these expenses, the
ratio of expenses to average daily net assets would have been 2.13%, 2.16%,
2.51% and 2.99%, respectively, and the ratio of net investment income
(loss)to average daily net assets would have been (.86)%, (.77)%, (.97)%
and (1.10)%, respectively. If Class C shares had been charged for these
expenses, the ratio of expenses to average daily net assets would have been
2.13%, 2.16%, 2.51% and 2.99%, respectively, and the ratio of net
investment income (loss) to average daily net assets would have been
(.86)%, (.77)%, (.97)% and (1.10)%, respectively.
(d) Commencement of operations.
23
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Advantus Index 500 Fund, Inc.:
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments in securities, of the Advantus Index 500
Fund, Inc. (the Fund) as of July 31, 2000 and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the years in the two-year period then ended and the financial highlights
for each of the years in the three-year period then ended and the period from
January 31, 1997, commencement of operations, to July 31, 1997. These financial
statements and the financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures include confimation of
securities owned as of July 31, 2000, by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and the financial highlights
referred to above present fairly, in all material respects, the financial
position of the Fund as of July 31, 2000 and the results of its operations,
changes in its net assets and financial highlights for the periods stated in the
first paragraph above, in conformity with accounting principles generally
accepted in the United States of America.
KPMG LLP
Minneapolis, Minnesota
September 8, 2000
24
<PAGE>
ADVANTUS INDEX 500 FUND
FEDERAL INCOME TAX INFORMATION
The following information for federal income tax purposes is presented as an
aid to shareholders in reporting the distributions paid by the Fund in the
fiscal period ended July 31, 2000. Dividends for the 2000 calendar year will be
reported to you on Form 1099-Div in late January 2001. Shareholders should
consult a tax adviser on how to report these distributions for state and local
purposes.
CLASS A
<TABLE>
<CAPTION>
PER
PAYABLE DATE SHARE
------------ --------
<S> <C>
Income distribution - taxable as dividend income, 100%
qualifying for deductions by corporations
September 23, 1999.......................................... $.0142
December 3, 1999*........................................... .1413
March 23, 2000.............................................. .0171
June 22, 2000............................................... .0045
------
$.1771
======
Capital gains distributions - taxable as long-term capital
gains, 20% rate.
December 3, 1999............................................ $.0038
======
</TABLE>
*Represents short-term capital gains (taxable as dividend income).
CLASS B
<TABLE>
<CAPTION>
PER
PAYABLE DATE SHARE
------------ --------
<S> <C>
Income distribution - taxable as dividend income, 100%
qualifying for deductions by corporations
December 3, 1999*........................................... $.1413
------
$.1413
======
Capital gains distributions - taxable as long-term capital
gains, 20% rate.
December 3, 1999............................................ $.0038
======
</TABLE>
*Represents short-term capital gains (taxable as dividend income).
CLASS C
<TABLE>
<CAPTION>
PER
PAYABLE DATE SHARE
------------ --------
<S> <C>
Income distribution - taxable as dividend income, 100%
qualifying for deductions by corporations
December 3, 1999*........................................... $.1413
------
$.1413
======
Capital gains distributions - taxable as long-term capital
gains, 20% rate.
December 3, 1999............................................ $.0038
======
</TABLE>
*Represents short-term capital gains (taxable as dividend income).
25
<PAGE>
ADVANTUS INDEX 500 FUND
SHAREHOLDER VOTING RESULTS
On April 28, 2000, a special meeting of shareholders of Advantus Index 500
Fund, Inc. was held. Shareholders of record on February 28, 2000, were entitled
to vote on the proposals described below.
(1) To elect a Board of Directors as follows:
<TABLE>
<CAPTION>
VOTES VOTES
DIRECTOR FOR WITHHELD
-------- --------- --------
<S> <C> <C>
Charles E. Arner........................ 2,248,194 88,606
Ellen S. Berscheid...................... 2,250,575 86,225
Ralph D. Ebbott......................... 2,248,484 88,316
Frederick P. Feuerherm.................. 2,251,060 85,740
William N. Westhoff..................... 2,251,060 85,740
</TABLE>
(2) To approve the elimination or modification of the following investment
policies for:
<TABLE>
<CAPTION>
VOTES VOTES VOTES
FOR AGAINST WITHHELD
--------- ------- --------
<S> <C> <C> <C>
A. Modify policy regarding borrowing
and the issuance of senior
securities........................... 1,588,183 24,622 104,064
B. Modify policy regarding
concentration in a particular
industry............................. 1,593,786 18,733 104,350
C. Modify policy regarding investments
in real estate and commodities....... 1,593,414 19,385 104,070
D. Modify policy regarding lending..... 1,593,336 19,448 104,086
E. Eliminate policy restricting the
pledging of assets................... 1,591,278 21,814 103,778
F. Eliminate policy restricting margin
purchases and short sales............ 1,584,350 31,418 101,101
G. Eliminate policy prohibiting
transactions with affiliates......... 1,593,982 19,540 103,348
H. Eliminate policy prohibiting
participation in a joint trading
account.............................. 1,594,369 18,105 104,394
I. Eliminate policy prohibiting options
transactions......................... 1,586,226 26,315 104,329
</TABLE>
(3) To approve an amendment to the investment advisory agreement between
the Fund and Advantus Capital Management, Inc., as described in the
proxy statement.
<TABLE>
<CAPTION>
VOTES VOTES VOTES
FOR AGAINST WITHHELD
--------- ------- --------
<S> <C> <C> <C>
1,597,855 11,263 107,751
</TABLE>
(4) To ratify the selection of KPMG LLP as independent public accountants
for the Fund.
<TABLE>
<CAPTION>
VOTES VOTES VOTES
FOR AGAINST WITHHELD
--------- ------- ---------
<S> <C> <C> <C>
1,605,827 7,550 103,493
</TABLE>
26
<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
27
<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 8 a.m.
to 4:45 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.
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).
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 thirteen mutual funds containing $3.2
billion in assets in addition to $11.1 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
28
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THIS REPORT HAS BEEN PREPARED FOR SHAREHOLDERS AND MAY BE DISTRIBUTED
TO OTHERS ONLY IF PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS.
READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.
[ADVANTUS -TM- FAMILY OF FUNDS LOGO]
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>
ASCEND FINANCIAL SERVICES, INC. PRESORTED STANDARD
400 ROBERT STREET NORTH U.S. POSTAGE
ST. PAUL, MN 55101-2098 PAID
ST. PAUL, MN
PERMIT NO. 3547
ADDRESS SERVICE REQUESTED
F.51520 Rev. 9-2000
