<PAGE>
INDEX 500
ADVANTUS INDEX 500 FUND, INC.
SEMI-ANNUAL REPORT TO SHAREHOLDERS DATED JANUARY 31, 2000 [LOGO]
ADVANTUS-TM-
FAMILY OF FUNDS
EQUITY
[PHOTO]
<PAGE>
ADVANTUS Index 500 Fund
TABLE OF CONTENTS
<TABLE>
<S> <C>
PERFORMANCE UPDATE 2
INVESTMENTS IN SECURITIES 5
STATEMENT OF ASSETS AND
LIABILITIES 17
STATEMENT OF OPERATIONS 18
STATEMENTS OF CHANGES IN NET
ASSETS 19
NOTES TO FINANCIAL STATEMENTS 20
SHAREHOLDER SERVICES 26
</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 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 six months ended January 31, 2000, the Advantus Index 500 Fund returned
the following for each class of shares currently offered:
<TABLE>
<S> <C>
CLASS A.......................... 5.05 PERCENT*
CLASS B.......................... 4.60 PERCENT*
CLASS C.......................... 4.61 PERCENT*
</TABLE>
This compares to the S&P 500 Index,** which earned 4.93 percent for the same
period.
Performance Analysis
For the first five months of this six-month reporting period (August through
December 1999), the S&P 500 composite was up more than 11 percent - a wonderful
finish to the calendar year-end. However, the composite declined significantly
in January 2000 to return -5.0 percent.
The technology sector continued to carry the composite during the reporting
period. In addition to being the largest-weighted sector in the composite, it
also returned 32 percent for the six months. Following tremendous
December gains of 19.5 percent, however, technology's January performance
generated a -7.6 percent return. Overall, the top five contributors to the
composite for the reporting period were Cisco Systems, Intel, General Electric,
Oracle and Sun Microsystems. Alternately, the biggest declines came from SBC
Communications, Lucent Technologies, Bank of America, Bank One and IBM.
Outlook
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. Over the short term, the market
must cope with the negative impacts of climbing interest rates that could cause
more volatility in a sustained bull market. In response to a technological
revolution, spending to retrofit U.S. industry is pushing economic growth and
productivity. We expect market euphoria will likely spill over, and corrections
may occur in the economy and the marketplace. We feel, however, this "new
economy" is creating excitement and opportunity for long-term investors.
2
<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 January 31,
1999.
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 3.40%
Since inception (1/31/97) 19.22%
Class B:
One year 3.47%
Since inception (1/31/97) 19.87%
Class C:
One year 8.49%
Since inception (1/31/97) 20.28%
(Thousands)
Class A Class B Class C S&P 500 Index CPI
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
1/31/00 16,956 17,230 17,411 18,540 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.
+"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.
*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.
3
<PAGE>
TEN LARGEST STOCK HOLDINGS
<TABLE>
<CAPTION>
MARKET % OF STOCK
COMPANY SHARES VALUE PORTFOLIO
- ------- -------- ----------- -----------
<S> <C> <C> <C>
Microsoft Corporation...................... 25,475 $ 2,493,366 4.2%
General Electric Company................... 16,500 2,200,687 3.7%
S&P 500 Depositary Receipts................ 13,050 1,820,475 3.1%
Cisco Systems, Inc. ....................... 15,950 1,746,525 2.9%
Intel Corporation.......................... 16,500 1,632,469 2.8%
Exxon Corporation.......................... 16,834 1,405,639 2.4%
Wal-Mart Stores, Inc. ..................... 21,700 1,188,075 2.0%
International Business Machines............ 8,800 987,250 1.7%
Citigroup, Inc. ........................... 16,433 943,870 1.6%
Merck & Co., Inc. ......................... 11,400 898,463 1.5%
----------- ---------
$15,316,819 25.9%
=========== =========
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Cash and Other Assets/Liabilities 0.4%
Transportation 0.6%
Utilities 2.5%
Basic Materials 3.0%
Energy 5.5%
Capital Goods 7.6%
Communication Services 8.4%
Consumer Cyclical 8.6%
Health Care 9.7%
Consumer Staples 10.9%
Financial 16.0%
Technology 26.8%
</TABLE>
4
<PAGE>
ADVANTUS Index 500 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 (99.6%)
BASIC MATERIALS (3.0%)
Agriculture Products (.1%)
2,904 Archer-Daniels-Midland Company................... $ 34,122
-----------
Aluminum (.3%)
1,075 Alcan Aluminum, Ltd. (c)......................... 41,992
1,800 Alcoa, Inc....................................... 125,437
300 Reynolds Metals Company.......................... 20,025
-----------
187,454
-----------
Chemicals (1.4%)
1,100 Air Products & Chemicals, Inc.................... 32,587
525 BF Goodrich Company.............................. 13,125
1,075 Dow Chemical Company............................. 125,237
5,100 E.I. DuPont de Nemours & Company................. 300,900
375 Eastman Chemical Company......................... 14,953
625 Ecolab, Inc...................................... 21,992
600 Engelhard Corporation............................ 9,562
150 FMC Corporation (b).............................. 8,062
275 Great Lakes Chemical Corporation................. 9,109
500 Hercules, Inc.................................... 8,562
500 International Flavors & Fragrance, Inc........... 17,844
3,100 Monsanto Company................................. 109,469
850 PPG Industries, Inc.............................. 46,803
775 Praxair, Inc..................................... 31,436
1,071 Rohm and Haas Company............................ 45,250
500 Sigma-Aldrich.................................... 16,750
650 Union Carbide Corporation........................ 36,400
350 W.R. Grace & Company (b)......................... 4,134
-----------
852,175
-----------
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
BASIC MATERIALS--CONTINUED
<C> <S> <C>
Construction ( - )
500 Vulcan Materials................................. $ 21,156
-----------
Iron and Steel (.1%)
450 Allegheny Teledyne, Inc.......................... 9,394
625 Bethlehem Steel Corporation (b)................. 4,258
425 Nucor Corporation................................ 21,144
425 USX - U.S. Steel Group, Inc...................... 10,572
425 Worthington Industries........................... 6,136
-----------
51,504
-----------
Mining (.2%)
1,900 Barrick Gold Corporation (c)..................... 31,112
775 Freeport-McMoran Copper & Gold, Inc. (b)......... 13,514
1,250 Homestake Mining Company......................... 8,281
925 Inco, Ltd. (c)................................... 17,575
800 Newmont Mining Corporation....................... 16,300
400 Phelps Dodge Corporation......................... 23,250
1,575 Placer Dome, Inc. (c)............................ 14,175
-----------
124,207
-----------
Paper and Forest (.9%)
200 Bemis Company, Inc............................... 6,312
275 Boise Cascade Corporation........................ 9,728
475 Champion International........................... 27,787
1,050 Fort James Corporation........................... 28,087
825 Georgia-Pacific Corporation...................... 33,619
2,025 International Paper Company...................... 96,441
2,650 Kimberly Clark Corporation....................... 164,134
500 Louisiana-Pacific Corporation.................... 6,437
</TABLE>
See accompanying notes to investments in securities.
5
<PAGE>
ADVANTUS Index 500 Fund
Investments in Securities - continued
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
BASIC MATERIALS--CONTINUED
<C> <S> <C>
500 Mead Corporation................................. $ 18,625
125 Potlatch Corporation............................. 5,031
300 Temple-Inland, Inc............................... 16,781
475 Westvaco Corporation............................. 13,033
1,150 Weyerhaeuser Company............................. 65,981
550 Willamette Industries, Inc....................... 22,550
-----------
514,546
-----------
CAPITAL GOODS (7.6%)
Aerospace/Defense (1.2%)
1,000 General Dynamics Corporation..................... 47,125
3,850 Honeywell International, Inc..................... 184,800
1,925 Lockheed Martin Corporation...................... 36,094
350 Northrop Grumman Corporation..................... 17,587
1,650 Raytheon Company................................. 37,641
925 Rockwell International Corporation............... 45,730
725 Textron, Inc..................................... 43,273
4,560 The Boeing Company............................... 202,065
2,300 United Technologies Corporation.................. 121,756
-----------
736,071
-----------
Containers-Metal/Glass (.1%)
150 Ball Corporation................................. 5,456
575 Crown Cork & Seal Company, Inc................... 11,680
700 Owens-Illinois, Inc. (b)........................ 12,819
-----------
29,955
-----------
Electrical Equipment (4.6%)
3,714 CBS Corporation (b).............................. 216,573
450 Cooper Industries, Inc........................... 17,269
2,125 Emerson Electric Company......................... 117,008
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
CAPITAL GOODS--CONTINUED
<C> <S> <C>
16,500 General Electric Company......................... $ 2,200,687
800 Molex, Inc....................................... 40,700
1,400 Solectron Corporation (b)........................ 101,675
750 Thermo Electron Corporation...................... 12,984
-----------
2,706,896
-----------
Engineering/Construction (.1%)
1,725 Caterpillar, Inc................................. 73,205
375 Fluor Corporation................................ 14,977
-----------
88,182
-----------
Machinery (.2%)
100 Briggs & Stratton Corporation.................... 4,437
175 Cincinnati Milacron, Inc......................... 2,111
1,125 Deere & Company.................................. 49,148
1,000 Dover Corporation................................ 40,313
800 Ingersoll Rand Company........................... 37,650
100 NACCO Industries, Inc............................ 5,075
-----------
138,734
-----------
Manufacturing (1.0%)
550 Avery Dennison Corporation....................... 37,262
1,500 Illinois Tool Works, Inc......................... 87,750
425 Johnson Controls................................. 23,481
225 Millipore Corporation............................ 9,633
175 National Service Industries, Inc................. 4,353
600 Pall Corporation................................. 11,062
550 Parker Hannifin Corporation...................... 23,787
400 Sealed Air (b)................................... 22,450
8,224 Tyco International Ltd. (c)...................... 351,576
-----------
571,354
-----------
Metal Fabrication ( - )
300 Timken Company................................... 4,894
-----------
</TABLE>
See accompanying notes to investments in securities.
6
<PAGE>
ADVANTUS Index 500 Fund
Investments in Securities - continued
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
CAPITAL GOODS--CONTINUED
<C> <S> <C>
Office Equipment (.2%)
725 Ikon Office Solutions, Inc....................... $ 5,845
625 Lexmark International Group, Inc. (b)............ 58,906
1,300 Pitney Bowes, Inc................................ 63,700
-----------
128,451
-----------
Trucks and Parts (.1%)
200 Cummins Engine Company, Inc...................... 7,650
300 Navistar International Corporation (b)........... 11,794
375 Paccar, Inc...................................... 15,539
-----------
34,983
-----------
Waste Management (.1%)
900 Allied Waste Industries, Inc. (b)................ 5,794
2,997 Waste Management, Inc............................ 52,447
-----------
58,241
-----------
COMMUNICATION SERVICES (8.4%)
Cellular (.3%)
1,775 Nextel Communications, Inc. (b).................. 188,816
-----------
Telecommunication (2.6%)
13,837 MCI Worldcom, Inc. (b)........................... 635,637
3,300 Qualcomm, Inc. (b)............................... 419,100
4,250 Sprint Corporation............................... 274,922
2,100 Sprint Corporation PCS (b)....................... 231,131
-----------
1,560,790
-----------
Telephone (5.5%)
1,525 Alltel Corporation............................... 101,794
15,584 AT&T Corporation - Liberty Media Group........... 822,056
7,574 Bell Atlantic Corporation........................ 469,115
9,175 Bellsouth Corporation............................ 431,798
675 CenturyTel, Inc.................................. 25,819
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
COMMUNICATION SERVICES--CONTINUED
<C> <S> <C>
3,700 Global Crossing Ltd. (b)(c)...................... $ 187,775
4,750 GTE Corporation.................................. 348,234
16,632 SBC Communications, Inc.......................... 717,255
2,463 US West, Inc..................................... 163,774
-----------
3,267,620
-----------
CONSUMER CYCLICAL (8.6%)
Auto (1.2%)
300 Cooper Tire & Rubber Company..................... 3,919
750 Dana Corporation................................. 17,625
700 Danaher Corporation.............................. 30,187
2,747 Delphi Automotive Systems Corporation............ 47,557
400 Eaton Corporation................................ 28,575
5,900 Ford Motor Company............................... 293,525
3,125 General Motors Corporation....................... 251,367
750 Goodyear Tire & Rubber Company................... 17,812
400 ITT Industries, Inc.............................. 12,650
275 Snap-On, Inc..................................... 7,391
600 TRW, Inc......................................... 26,287
-----------
736,895
-----------
Building Materials (.1%)
175 Armstrong World Industries, Inc.................. 4,003
275 Centex Corporation............................... 6,050
300 Crane Company.................................... 5,869
225 Kaufman & Broad Home Corporation................. 4,880
2,175 Masco Corporation................................ 43,364
250 Owens Corning.................................... 4,016
200 Pulte Corporation................................ 3,487
-----------
71,669
-----------
Distribution Durables ( - )
850 Genuine Parts Company............................ 20,506
-----------
</TABLE>
See accompanying notes to investments in securities.
7
<PAGE>
ADVANTUS Index 500 Fund
Investments in Securities - continued
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
CONSUMER CYCLICAL--CONTINUED
<C> <S> <C>
Hardware and Tools ( - )
425 Black & Decker................................... $ 17,027
400 The Stanley Works................................ 10,050
-----------
27,077
-----------
Houseware (.4%)
1,200 Corning, Inc..................................... 185,100
900 Leggett & Platt, Inc............................. 16,200
400 Maytag Corporation............................... 16,200
375 Whirlpool Corporation............................ 21,844
-----------
239,344
-----------
Leisure (.2%)
425 Brunswick Corporation............................ 8,048
700 Harley-Davidson, Inc............................. 49,131
925 Hasbro, Inc...................................... 13,875
2,050 Mattel, Inc...................................... 21,397
-----------
92,451
-----------
Lodging-Hotel (.1%)
1,775 Hilton Hotels Corporation........................ 14,977
1,200 Marriott International, Inc...................... 37,275
-----------
52,252
-----------
Photography/Imagery (.3%)
1,500 Eastman Kodak Company............................ 92,812
200 Polaroid Corporation............................. 4,750
3,225 Xerox Corporation................................ 67,322
-----------
164,884
-----------
Publishing (.5%)
450 Dow Jones & Company, Inc......................... 27,900
1,375 Gannett Company.................................. 95,562
400 Knight Ridder, Inc............................... 21,325
250 Meredith Corporation............................. 8,750
825 New York Times Company........................... 37,692
600 R.R. Donnelley & Sons Company.................... 13,162
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
CONSUMER CYCLICAL--CONTINUED
<C> <S> <C>
950 The McGraw-Hill Companies, Inc................... $ 53,259
300 The Times Mirror Company......................... 17,756
1,200 Tribune Company.................................. 50,625
-----------
326,031
-----------
Retail (5.2%)
300 American Greetings Corporation................... 6,637
700 Autozone, Inc. (b)............................... 18,375
600 Bed Bath & Beyond, Inc. (b)...................... 16,312
1,000 Best Buy Company, Inc. (b)....................... 47,750
975 Circuit City Stores, Inc......................... 37,537
525 Consolidated Stores Corporation (b).............. 7,481
2,300 Costco Companies, Inc. (b)....................... 112,556
500 Dillards, Inc.................................... 9,594
1,275 Dollar General Corporation....................... 27,094
1,025 Federated Department Stores (b).................. 42,666
4,162 Gap, Inc......................................... 185,989
350 Harcourt General, Inc............................ 14,000
11,250 Home Depot, Inc.................................. 637,031
1,250 J. C. Penney Company............................. 24,531
2,400 K Mart Corporation (b)........................... 20,100
800 Kohl's Corporation (b)........................... 56,100
1,875 Lowe's Companies, Inc............................ 83,672
1,625 May Department Stores Company.................... 50,578
1,375 Nike, Inc........................................ 62,562
675 Nordstrom, Inc................................... 14,850
1,600 Office Depot, Inc. (b)........................... 16,100
250 Pep Boys......................................... 1,812
250 Reebok International, Ltd. (b)................... 1,844
</TABLE>
See accompanying notes to investments in securities.
8
<PAGE>
ADVANTUS Index 500 Fund
Investments in Securities - continued
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
CONSUMER CYCLICAL--CONTINUED
<C> <S> <C>
1,825 Sears, Roebuck & Company......................... $ 56,461
800 Sherwin-Williams Company......................... 14,100
2,250 Staples, Inc. (b)................................ 53,578
950 Tandy Corporation................................ 46,431
2,200 Target Corporation............................... 145,337
1,050 The Limited, Inc................................. 32,222
1,500 TJX Companies, Inc............................... 24,469
1,175 Toys 'R' Us, Inc. (b)............................ 12,117
21,700 Wal-Mart Stores, Inc............................. 1,188,075
-----------
3,067,961
-----------
Service (.5%)
3,450 Cendant Corporation.............................. 69,647
675 Equifax, Inc..................................... 14,512
625 Harrah's Entertainment (b)....................... 12,461
1,375 Interpublic Group Company........................ 63,250
150 Jostens, Inc..................................... 3,516
925 Mirage Resorts, Inc. (b)......................... 11,562
875 Omnicom Group, Inc............................... 81,977
550 Quintiles Transnational (b)...................... 14,541
1,325 Service Corporation International................ 6,045
400 Young & Rubicam Inc.............................. 21,550
-----------
299,061
-----------
Textiles (.1%)
300 Liz Claiborne, Inc............................... 10,144
150 Russell Corporation.............................. 2,241
100 Springs Industries, Inc.......................... 3,637
575 V.F. Corporation................................. 14,914
-----------
30,936
-----------
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
CONSUMER STAPLES (10.9%)
<C> <S> <C>
Beverage (2.2%)
175 Adolph Coors Company............................. $ 8,487
2,275 Anheuser-Busch Companies, Inc.................... 153,562
325 Brown-Forman, Inc................................ 18,180
2,050 Coca-Cola Enterprises Inc........................ 51,762
7,100 PepsiCo, Inc..................................... 242,288
2,100 Seagram Company, Ltd. (c)........................ 121,931
12,050 The Coca-Cola Company............................ 692,122
-----------
1,288,332
-----------
Broadcasting (1.0%)
1,650 Clear Channel Communications..................... 142,519
4,200 Comcast Corporation.............................. 193,200
3,000 MediaOne, Inc. (b)............................... 238,500
-----------
574,219
-----------
Entertainment (2.0%)
3,000 Carnival Corporation............................. 135,188
6,250 Time Warner, Inc................................. 499,609
3,400 Viacom, Inc. (b)................................. 188,275
10,050 Walt Disney Company.............................. 364,941
-----------
1,188,013
-----------
Food (1.2%)
1,350 Best Foods....................................... 58,725
2,075 Campbell Soup Company............................ 65,233
2,400 Conagra, Inc..................................... 51,300
1,475 General Mills, Inc............................... 46,002
1,750 H.J. Heinz Company............................... 65,078
675 Hershey Foods Corporation........................ 28,688
1,975 Kellogg Company.................................. 47,894
1,575 Ralston-Ralston Purina Group..................... 44,198
1,575 RJR Nabisco Holdings Corporation................. 13,584
4,425 Sara Lee Corporation............................. 81,586
</TABLE>
See accompanying notes to investments in securities.
9
<PAGE>
ADVANTUS Index 500 Fund
Investments in Securities - continued
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
CONSUMER STAPLES--CONTINUED
<C> <S> <C>
650 The Quaker Oats Company.......................... $ 38,594
2,796 Unilever NV (c).................................. 129,315
600 Wm. Wrigley Jr. Company.......................... 46,800
-----------
716,997
-----------
Food & Health (.1%)
1,600 SYSCO Corporation................................ 56,900
-----------
Household Products (2.2%)
1,100 Clorox Company................................... 52,525
2,800 Colgate-Palmolive Company........................ 165,900
5,225 Gillette Company................................. 196,591
1,950 Minnesota Mining and Manufacturing Company....... 182,569
1,288 Newell Rubbermaid, Inc........................... 38,640
825 Pactiv Corporation (b)........................... 7,631
6,425 Procter & Gamble Company......................... 648,122
275 Tupperware Corporation........................... 4,486
-----------
1,296,464
-----------
Personal Care (.1%)
250 Alberto-Culver Company........................... 6,141
1,100 Avon Products.................................... 34,994
-----------
41,135
-----------
Restaurants (.5%)
625 Darden Restaurants, Inc.......................... 9,922
6,600 McDonald's Corporation........................... 245,438
740 Tricon Global Restaurants, Inc. (b).............. 21,183
500 Wendy's International, Inc....................... 9,406
-----------
285,949
-----------
Retail (.8%)
2,057 Albertson's, Inc................................. 62,996
1,900 CVS Corporation.................................. 66,381
4,000 Kroger Company (b)............................... 69,500
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
CONSUMER STAPLES--CONTINUED
<C> <S> <C>
175 Longs Drug Stores Corporation.................... $ 3,763
1,250 Rite Aid Corporation............................. 8,828
2,475 Safeway, Inc. (b)................................ 94,514
675 Supervalu, Inc................................... 12,150
175 The Great Atlantic & Pacific..................... 4,834
4,875 Walgreen Company................................. 134,672
700 Winn-Dixie Stores, Inc........................... 14,175
-----------
471,813
-----------
Service (.3%)
3,050 Automatic Data Processing, Inc................... 144,684
700 Ceridian Corporation (b)......................... 11,200
300 Deluxe Corporation............................... 8,025
-----------
163,909
-----------
Tobacco (.5%)
800 Fortune Brands, Inc.............................. 23,200
11,525 Philip Morris Companies, Inc..................... 241,305
825 UST, Inc......................................... 18,923
-----------
283,428
-----------
ENERGY (5.5%)
Oil (4.5%)
450 Amerada Hess Corporation......................... 23,934
3,200 Chevron Corporation.............................. 267,400
3,000 Conoco, Inc...................................... 70,688
16,834 Exxon Corporation................................ 1,405,639
1,775 Occidental Petroleum Corporation................. 35,278
1,225 Phillips Petroleum Company....................... 50,072
10,450 Royal Dutch Petroleum Company (c)................ 575,403
2,700 Texaco, Inc...................................... 142,763
1,175 Unocal Corporation............................... 33,634
</TABLE>
See accompanying notes to investments in securities.
10
<PAGE>
ADVANTUS Index 500 Fund
Investments in Securities - continued
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
ENERGY--CONTINUED
<C> <S> <C>
1,500 USX - Marathon Group............................. $ 38,531
-----------
2,643,342
-----------
Oil & Gas (1.0%)
600 Anadarko Petroleum Corporation................... 19,688
550 Apache Corporation............................... 20,075
350 Ashland, Inc..................................... 11,397
1,400 Atlantic Richfield Company....................... 107,800
1,595 Baker Hughes, Inc................................ 39,277
1,052 Burlington Resources, Inc........................ 33,730
125 Eastern Enterprises.............................. 7,148
2,100 Halliburton Company.............................. 75,600
425 Kerr-McGee Corporation........................... 23,534
275 McDermott International, Inc..................... 2,716
400 Rowan Company (b)................................ 9,075
2,675 Schlumberger, Ltd................................ 163,342
425 Sunoco, Inc...................................... 9,802
700 Tosco Corporation................................ 17,981
1,017 Transocean Sedco Forex, Inc...................... 32,353
1,225 Union Pacific Resources Group.................... 13,475
-----------
586,993
-----------
FINANCIAL (16.0%)
Auto Finance (.2%)
4,450 Fleet Financial Group, Inc....................... 139,897
-----------
Banks (4.6%)
1,900 AmSouth Bancorporation........................... 33,131
8,318 Bank of America Corporation...................... 402,926
3,575 Bank of New York Company, Inc.................... 145,234
5,590 Bank One Corporation............................. 166,652
1,600 BB&T Corporation................................. 45,000
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
FINANCIAL--CONTINUED
<C> <S> <C>
4,025 Chase Manhattan Corporation...................... $ 323,761
750 Comerica, Inc.................................... 33,141
1,550 Fifth Third Bancorp.............................. 102,881
4,798 First Union Corporation.......................... 161,033
4,777 Firstar Corporation.............................. 114,051
1,106 Huntington Bancshares, Inc....................... 23,848
850 J.P. Morgan & Company, Inc....................... 104,391
2,175 KeyCorp.......................................... 45,675
2,400 Mellon Bank Corporation.......................... 82,350
3,000 National City Corporation........................ 64,875
1,075 Northern Trust Corporation....................... 64,903
500 Old Kent Financial Corporation................... 16,156
1,425 PNC Bank Corporation............................. 68,400
1,050 Regions Financial Corporation.................... 25,463
800 Southtrust Corporation........................... 24,350
775 State Street Corporation......................... 62,145
850 Summit Bancorp................................... 25,447
1,575 Suntrust Banks, Inc.............................. 93,811
1,350 Synovus Financial Corporation.................... 25,650
3,528 U.S. Bancorp..................................... 78,278
675 Union Planters Corporation....................... 22,739
1,000 Wachovia Corporation............................. 64,063
8,000 Wells Fargo Company.............................. 320,000
-----------
2,740,354
-----------
Commercial Finance ( - )
775 Dun & Bradstreet Corporation..................... 19,520
-----------
Consumer Finance (1.1%)
2,200 American Express Company......................... 362,588
3,548 Associates First Capital Corporation............. 70,950
</TABLE>
See accompanying notes to investments in securities.
11
<PAGE>
ADVANTUS Index 500 Fund
Investments in Securities - continued
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
FINANCIAL--CONTINUED
<C> <S> <C>
950 Capital One Financial Corporation................ $ 38,950
2,294 Household International, Inc..................... 80,864
3,900 MBNA Corporation................................. 98,475
775 SLM Holding Corporation.......................... 30,177
-----------
682,004
-----------
Finance-Diversified (1.0%)
1,200 American General Corporation..................... 73,725
3,375 Federal Home Loan Mortgage Company............... 169,383
5,000 Federal National Mortgage Association............ 299,688
525 MGIC Investment Corporation...................... 24,445
-----------
567,241
-----------
Insurance (4.4%)
725 Aetna, Inc....................................... 38,606
1,300 AFLAC, Inc....................................... 56,469
3,925 Allstate Corporation............................. 91,011
7,568 American International Group..................... 788,018
1,250 Aon Corporation.................................. 32,344
850 Chubb Corporation................................ 47,813
900 Cigna Corporation................................ 64,575
800 Cincinnati Financial Corporation................. 23,000
16,433 Citigroup, Inc................................... 943,870
1,574 Conseco, Inc..................................... 24,004
500 Jefferson-Pilot Corporation...................... 29,375
950 Lincoln National Corporation..................... 35,091
525 Loews Corporation................................ 29,400
1,300 Marsh & McLennen Companies, Inc.................. 122,200
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
FINANCIAL--CONTINUED
<C> <S> <C>
475 MBIA, Inc........................................ $ 23,780
400 Progressive Corporation.......................... 24,900
750 Providian Financial Corporation.................. 63,281
625 Safeco Corporation............................... 15,313
1,100 St. Paul Companies, Inc.......................... 33,206
1,075 The Hartford Financial Services Group, Inc....... 40,984
625 Torchmark Corporation............................ 15,742
1,150 Unum Corporation................................. 30,763
300 Wellpoint Health Networks, Inc. (b).............. 20,400
-----------
2,594,145
-----------
Investment Bankers/Brokers (1.5%)
575 Bear Stearns Companies........................... 23,719
3,950 Charles Schwab Corporation....................... 142,447
1,225 Franklin Resources, Inc.......................... 43,717
475 H & R Block, Inc................................. 20,484
600 Lehman Brothers Holdings, Inc.................... 42,900
1,800 Merrill Lynch & Co., Inc......................... 156,150
5,460 Morgan Stanley Dean Witter & Company............. 361,725
700 Paine Webber Group, Inc.......................... 26,906
575 T. Rowe Price Associates......................... 22,353
-----------
840,401
-----------
Public Finance ( - )
550 Countrywide Credit Industries.................... 14,300
-----------
Savings and Loans (.2%)
775 Golden West Financial Corporation................ 22,814
2,803 Washington Mutual, Inc........................... 71,126
-----------
93,940
-----------
</TABLE>
See accompanying notes to investments in securities.
12
<PAGE>
ADVANTUS Index 500 Fund
Investments in Securities - continued
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
HEALTH CARE (9.7%)
<C> <S> <C>
Biotechnology (.6%)
5,000 Amgen, Inc. (b).................................. $ 318,438
700 Biogen, Inc. (b)................................. 60,375
-----------
378,813
-----------
Drugs (5.7%)
6,375 American Home Products Corporation............... 300,023
9,675 Bristol-Myers Squibb Company..................... 638,550
1,375 Cardinal Health, Inc............................. 65,742
5,325 Eli Lilly & Company.............................. 356,109
11,400 Merck & Co., Inc................................. 898,463
18,875 Pfizer, Inc...................................... 686,578
2,525 Pharmacia & Upjohn, Inc.......................... 118,675
7,150 Schering Plough Corporation...................... 314,600
450 Watson Pharmaceuticals (b)....................... 18,141
-----------
3,396,881
-----------
Health Care-Diversified (2.1%)
7,500 Abbott Laboratories.............................. 244,688
625 Allergan, Inc.................................... 35,625
1,875 Healthsouth Rehabilitation Company (b)........... 10,313
6,775 Johnson & Johnson................................ 583,073
4,200 Warner-Lambert Company........................... 398,738
-----------
1,272,437
-----------
Hospital Management (.2%)
2,725 Columbia/HCA Healthcare Corporation.............. 74,427
1,500 Tenet Healthcare Corporation (b)................. 34,125
-----------
108,552
-----------
Managed Care (.1%)
800 Humana, Inc. (b)................................. 6,400
500 Manor Care, Inc. (b)............................. 6,656
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
HEALTH CARE--CONTINUED
<C> <S> <C>
1,350 McKesson HBOC, Inc............................... $ 27,759
825 United Health Care Corporation................... 43,725
-----------
84,540
-----------
Medical Products/Supplies (1.0%)
500 Alza Corporation (b)............................. 17,844
300 Bausch & Lomb, Inc............................... 18,600
1,425 Baxter International, Inc........................ 91,022
1,200 Becton Dickinson & Company....................... 31,425
550 Biomet, Inc...................................... 21,897
2,000 Boston Scientific Corporation (b)................ 41,500
250 C.R. Bard, Inc................................... 11,188
1,500 Guidant Corporation (b).......................... 78,938
325 Mallinckrodt, Inc................................ 9,364
5,825 Medtronic, Inc................................... 266,494
400 St. Jude Medical, Inc. (b)....................... 9,925
-----------
598,197
-----------
TECHNOLOGY (26.8%)
1,700 3 Com Corporation (b)............................ 86,275
450 Adaptec, Inc. (b)................................ 23,569
725 ADC Telecomm, Inc................................ 47,805
600 Adobe Systems, Inc............................... 33,038
700 Advanced Micro Devices, Inc. (b)................. 25,375
10,900 America Online, Inc. (b)......................... 620,619
900 Analog Devices, Inc. (b)......................... 84,150
400 Andrew Corporation (b)........................... 9,200
800 Apple Computer, Inc. (b)......................... 83,000
1,850 Applied Materials, Inc. (b)...................... 253,913
300 Autodesk, Inc.................................... 9,169
1,175 BMC Software, Inc. (b)........................... 44,503
875 Cabletron Systems, Inc. (b)...................... 22,477
15,950 Cisco Systems, Inc. (b).......................... 1,746,525
500 Citrix Systems, Inc. (b)......................... 68,625
</TABLE>
See accompanying notes to investments in securities.
13
<PAGE>
ADVANTUS Index 500 Fund
Investments in Securities - continued
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
<C> <S> <C>
8,286 Compaq Computer Corporation...................... $ 226,829
2,625 Computer Associates International................ 180,305
825 Computer Sciences Corporation (b)................ 75,797
1,750 Compuware Corporation (b)........................ 37,078
400 Comverse Technology (b).......................... 57,350
900 Conexant Systems, Inc. (b)....................... 76,050
12,375 Dell Computer Corporation (b).................... 477,211
2,300 Electronic Data Systems Corporation.............. 155,538
5,000 EMC Corporation (b).............................. 532,500
2,000 First Data Corporation........................... 98,125
1,550 Gateway, Inc. (b)................................ 94,841
4,975 Hewlett-Packard Company.......................... 538,544
1,500 IMS Health, Inc.................................. 33,656
16,500 Intel Corporation................................ 1,632,469
8,800 International Business Machines.................. 987,250
900 KLA-Tencor Corporation (b)....................... 52,763
725 LSI Logic Corporation (b)........................ 59,269
15,275 Lucent Technologies, Inc......................... 843,944
1,325 Micron Technology, Inc. (b)...................... 82,398
25,475 Microsoft Corporation (b)........................ 2,493,366
3,463 Motorola, Inc.................................... 473,565
825 National Semiconductor Corporation (b)........... 43,313
500 NCR Corporation (b).............................. 19,250
750 Network Appliance, Inc. (b)...................... 75,281
6,540 Nortel Networks Corporation...................... 625,388
1,600 Novell, Inc. (b)................................. 53,400
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
<C> <S> <C>
13,900 Oracle Corporation (b)........................... $ 694,348
1,300 Parametric Technology Corporation (b)............ 27,869
1,200 Paychex, Inc..................................... 52,875
500 PE Corp - PE Biosystems Group.................... 74,875
1,175 Peoplesoft, Inc. (b)............................. 26,438
225 Perkin Elmer, Inc................................ 11,264
375 Scientific-Atlanta, Inc.......................... 28,898
1,025 Seagate Technology, Inc. (b).................... 41,064
125 Shared Medical Systems........................... 5,531
875 Silicon Graphics, Inc. (b)...................... 8,477
7,625 Sun Microsystems, Inc. (b)...................... 599,039
225 Tektronix, Inc................................... 9,127
1,975 Tellabs, Inc. (b)............................... 106,650
825 Teradyne, Inc. (b).............................. 53,419
3,925 Texas Instruments, Inc........................... 423,409
275 Thomas & Betts Corporation....................... 8,370
1,500 Unisys Corporation (b)........................... 47,813
450 W.W. Grainger, Inc............................... 21,572
1,600 Xilinx, Inc. (b)................................. 73,200
1,300 Yahoo! Inc. (b).................................. 418,681
-----------
15,916,642
-----------
TRANSPORTATION (.6%)
Air Freight (.1%)
1,450 FedEx Corporation (b)............................ 57,366
-----------
Airlines (.2%)
725 AMR Corporation (b).............................. 39,014
650 Delta Air Lines, Inc............................. 30,103
2,450 Southwest Airlines Company....................... 39,047
300 US Airways Group, Inc. (b)....................... 6,619
-----------
114,783
-----------
</TABLE>
See accompanying notes to investments in securities.
14
<PAGE>
ADVANTUS Index 500 Fund
Investments in Securities - continued
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
TRANSPORTATION--CONTINUED
<C> <S> <C>
Railroads (.3%)
2,225 Burlington Northern Santa Fe Corporation......... $ 53,539
1,050 CSX Corporation.................................. 30,713
500 Kansas City Southern Industries.................. 34,594
1,850 Norfolk Southern Corporation..................... 31,450
1,200 Union Pacific Corporation........................ 48,000
-----------
198,296
-----------
Trucking ( - )
300 Ryder System, Inc................................ 6,619
-----------
UTILITIES (2.5%)
Electric Companies (1.7%)
1,000 AES Corporation (b).............................. 80,125
650 Ameren Corporation............................... 21,166
925 American Electric Power Company.................. 30,988
775 Carolina Power & Light Company................... 24,994
1,025 Central & Southwest Corporation.................. 20,692
750 Cinergy Corporation.............................. 18,656
500 CMS Energy Corporation........................... 15,000
1,075 Consolidated Edison, Inc......................... 35,139
725 Constellation Energy Group....................... 21,841
1,502 Dominion Resources, Inc.......................... 60,925
700 DTE Energy Company............................... 24,325
1,783 Duke Energy Corporation.......................... 102,968
1,675 Edison International............................. 48,575
1,200 Entergy Corporation.............................. 29,925
1,125 FirstEnergy Corporation.......................... 25,594
475 Florida Progress Corporation..................... 20,128
875 FPL Group, Inc................................... 36,914
600 GPU, Inc......................................... 17,400
<CAPTION>
MARKET
SHARES VALUE(A)
- -------------------------------------------------------------------------
UTILITIES--CONTINUED
<C> <S> <C>
550 New Century Energies, Inc........................ $ 15,916
900 Niagara Mohawk Power Corporation (b)............. 11,306
750 Northern States Power Company.................... 14,438
1,850 Pacific Gas & Electric Company................... 40,584
900 Peco Energy Company.............................. 37,463
400 Pinnacle West Capital Corporation................ 12,350
700 PP&L Resources, Inc.............................. 16,231
1,000 Public Service Enterprise Group Incorporated..... 34,375
1,425 Reliant Energy, Inc.............................. 32,508
3,200 Southern Company................................. 82,000
1,350 Texas Utilities Company.......................... 47,756
1,050 Unicom Corporation............................... 41,081
-----------
1,021,363
-----------
Natural Gas (.8%)
1,025 Coastal Corporation.............................. 37,797
400 Columbia Gas System, Inc......................... 26,000
1,100 El Paso Energy Corporation....................... 35,475
3,475 Enron Corporation................................ 234,345
225 Nicor, Inc....................................... 7,706
150 Oneok, Inc....................................... 3,919
175 Peoples Energy Corporation....................... 5,469
1,150 Sempra Energy.................................... 21,347
2,100 The Williams Company............................. 81,375
-----------
453,433
-----------
Depository Receipts (3.0%)
13,050 S&P 500 Depository Receipt....................... 1,820,475
-----------
Total common stock
(cost: $45,223,956)........................................ 59,146,911
-----------
</TABLE>
See accompanying notes to investments in securities.
15
<PAGE>
ADVANTUS Index 500 Fund
Investments in Securities - continued
(UNAUDITED)
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE(A)
- --------- ---------------
<C> <S> <C> <C>
SHORT-TERM SECURITIES (1.0%)
$578,412 Federated Money Market Obligations Trust - Prime
Obligation Fund, current rate 5.680%..................... $ 578,412
-----------
Total short-term securities (cost: $578,412).............. 578,412
-----------
Total investments in securities
(cost: $45,802,368) (d).................................. $59,725,323
===========
</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 2.5% 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 $45,965,805. The aggregate unrealized appreciation and depreciation of
investments in securities based on this cost were:
<TABLE>
<S> <C>
Gross unrealized appreciation.......... $17,636,111
Gross unrealized depreciation.......... (3,876,593)
-----------
Net unrealized appreciation............ $13,759,518
===========
</TABLE>
16
<PAGE>
ADVANTUS Index 500 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: $45,802,368)........ $59,725,323
Receivable for Fund shares sold........ 91,123
Receivable for investment securities
sold.................................. 15,309
Accrued interest receivable............ 2,170
Dividends receivable................... 39,004
Organizational costs (note 5).......... 35,529
Receivable from Adviser................ 21,105
----------
Total assets....................... 59,929,563
----------
LIABILITIES
Bank overdraft......................... 2,295
Payable to Adviser..................... 95,308
Payable for investment securities
purchased............................. 390,201
Payable for Fund shares redeemed....... 67,617
----------
Total liabilities.................. 555,421
----------
Net assets applicable to outstanding
capital stock......................... $59,374,142
==========
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)............................. $ 32,282
Additional paid-in capital........... 45,806,539
Accumulated net realized losses from
investments.......................... (387,634)
Unrealized appreciation on
investments.......................... 13,922,955
----------
Total - representing net assets
applicable to outstanding capital
stock.............................. $59,374,142
==========
Net assets applicable to outstanding
Class A shares........................ $27,546,265
==========
Net assets applicable to outstanding
Class B shares........................ $28,353,634
==========
Net assets applicable to outstanding
Class C shares........................ $3,474,243
==========
Shares outstanding and net asset value
per share:
Class A - Shares outstanding
1,489,721............................ $ 18.49
==========
Class B - Shares outstanding
1,548,397............................ $ 18.31
==========
Class C - Shares outstanding
190,145.............................. $ 18.27
==========
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
ADVANTUS Index 500 Fund
Statement of Operations
PERIOD FROM AUGUST 1, 1999 TO JANUARY 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
Investment income:
Interest............................. $ 7,445
Dividends............................ 334,000
---------
Total investment income............ 341,445
---------
Expenses (note 4):
Investment advisory fee.............. 95,633
Rule 12b-1 fees - Class A............ 33,306
Rule 12b-1 fees - Class B............ 132,165
Rule 12b-1 fees - Class C............ 15,887
Administrative services fee.......... 37,200
Amortization of organizational
costs.............................. 8,882
Transfer agent and shareholder
servicing fees..................... 90,295
Custodian fees....................... 5,050
Auditing and accounting services..... 8,981
Legal fees........................... 4,000
Registration fees.................... 21,193
Printing and shareholder reports..... 47,138
Insurance............................ 1,817
S&P licensing fee.................... 3,471
Other................................ 5,529
---------
Total expenses................... 510,547
---------
Less fees and expenses waived or
absorbed by Adviser and
Distributor:
Class A distribution fees.......... (13,322)
Other fund expenses................ (160,425)
---------
Total fees and expenses waived or
absorbed........................ (173,747)
---------
Total net expenses............... 336,800
---------
Investment income - net.......... 4,645
---------
Realized and unrealized gains (losses)
on investments:
Net realized losses on investments
(note 3)........................... (124,572)
Net change in unrealized appreciation
or depreciation on investments..... 2,730,556
---------
Net gains on investments......... 2,605,984
---------
Net increase in net assets resulting
from operations...................... $2,610,629
=========
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
ADVANTUS Index 500 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.............. $ 4,645 $ 93,548
Net realized gain (loss) on
investments........................ (124,572) 211,208
Net change in unrealized appreciation
or depreciation on investments..... 2,730,556 6,581,538
----------- -----------
Increase in net assets resulting
from operations................ 2,610,629 6,886,294
----------- -----------
Distributions to shareholders from:
Investment income - net:
Class A............................ (20,500) (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.............. (470,149) (286,343)
----------- -----------
Capital share transactions (notes 4 and
6):
Proceeds from sales:
Class A............................ 2,858,078 10,263,823
Class B............................ 4,085,786 12,218,978
Class C............................ 902,583 1,887,095
Proceeds from issuance of shares as a
result of reinvested dividends:
Class A............................ 145,644 116,444
Class B............................ 211,887 73,336
Class C............................ 25,534 8,291
Payments for redemption of shares:
Class A............................ (2,026,241) (4,003,764)
Class B............................ (1,099,660) (2,766,448)
Class C............................ (480,460) (837,889)
----------- -----------
Increase in net assets from
capital share transactions..... 4,623,151 16,959,866
----------- -----------
Total increase in net assets..... 6,763,631 23,559,817
Net assets at beginning of period...... 52,610,511 29,050,694
----------- -----------
Net assets at end of period............ $59,374,142 $52,610,511
=========== ===========
</TABLE>
See accompanying notes to financial statements.
19
<PAGE>
ADVANTUS Index 500 Fund
Notes to Financial Statements
JANUARY 31, 2000
(UNAUDITED)
(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 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.
20
<PAGE>
ADVANTUS Index 500 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
$15,855.
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
$14,034,438 and $9,992,209, respectively.
(4) EXPENSES AND RELATED PARTY TRANSACTIONS
The Fund has an investment advisory agreement with Advantus Capital. 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 $13,322 for the period ended
January 31, 2000.
21
<PAGE>
ADVANTUS Index 500 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 in a shareholder and administrative services agreement
with Minnesota Life Insurance Company (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 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 January
31, 2000, Advantus Capital voluntarily agreed to absorb $160,425 in expenses
which were otherwise payable by the Fund.
Sales charges received by Ascend for distributing the Funds three classes of
shares amounted to $91,755.
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.
22
<PAGE>
ADVANTUS Index 500 Fund
Notes to Financial Statements - continued
(UNAUDITED)
(6) CAPITAL SHARE TRANSACTIONS
Transactions in shares for the period ended 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...................................... 156,671 631,958 225,483 751,334 50,214 117,017
Issued for reinvested distributions....... 7,747 7,331 11,260 4,721 1,366 531
Redeemed.................................. (111,651) (245,455) (60,539) (172,144) (26,775) (52,929)
-------- -------- -------- -------- ------- --------
52,767 393,834 176,204 583,911 24,805 64,619
======== ======== ======== ======== ======= ========
</TABLE>
23
<PAGE>
ADVANTUS Index 500 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... $ 17.74 $ 15.06 $ 12.89 $10.68
------- ------- ------- ------
Income from investment operations:
Net investment income................ .04 .11 .10 .06
Net gains on securities (both
realized and unrealized)........... .87 2.74 2.21 2.21
------- ------- ------- ------
Total from investment operations... .91 2.85 2.31 2.27
------- ------- ------- ------
Less distributions:
Dividends from net investment
income............................. (.01) (.10) (.12) (.06)
Distributions from capital gains..... (.15) (.07) (.02) -
------- ------- ------- ------
Total distributions................ (.16) (.17) (.14) (.06)
------- ------- ------- ------
Net asset value, end of period......... $ 18.49 $ 17.74 $ 15.06 $12.89
======= ======= ======= ======
Total return (a)....................... 5.05% 19.13% 18.19% 21.29%
Net assets, end of period (in
thousands)........................... $27,546 $25,498 $15,711 $8,176
Ratio of expenses to average daily net
assets (c)........................... .75%(b) .75% .74% .70%(b)
Ratio of net investment income to
average daily net assets(c).......... .47%(b) .64% .83% 1.19%(b)
Portfolio turnover rate (excluding
short-term securities)............... 18.0% 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
$173,747, $255,026, $181,190 and $50,025 in expenses for the period ended
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 1.42%, 1.43%, 1.81%
and 2.29%, respectively, and the ratio of net investment income (loss) to
average daily net assets would have been (.20)%, (.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 2.16%, 2.16%,
2.51% and 2.99%, respectively, and the ratio of net investment income
(loss) to average daily net assets would have been (.96)%, (.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
2.16%, 2.16%, 2.51% and 2.99%, respectively, and the ratio of net
investment income (loss) to average daily net assets would have been
(.96)%, (.77)%, (.97)% and (1.10)%, respectively.
(d) Inception date of the Fund.
24
<PAGE>
ADVANTUS Index 500 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... $ 17.64 $ 15.01 $ 12.87 $10.69 $17.60 $14.97 $12.85
------- ------- ------- ------ ------ ------ ------
Income from investment operations:
Net investment income................ (.04) (.03) .02 .01 (.04) (.03) .01
Net gains on securities (both
realized and unrealized)........... .86 2.73 2.17 2.21 .86 2.73 2.16
------- ------- ------- ------ ------ ------ ------
Total from investment operations... .82 2.70 2.19 2.22 .82 2.70 2.17
------- ------- ------- ------ ------ ------ ------
Less distributions:
Dividends from net investment
income............................. - - (.03) (.04) - - (.03)
Distributions from capital gains..... (.15) (.07) (.02) - (.15) (.07) (.02)
------- ------- ------- ------ ------ ------ ------
Total distributions................ (.15) (.07) (.05) (.04) (.15) (.07) (.05)
------- ------- ------- ------ ------ ------ ------
Net asset value, end of period......... $ 18.31 $ 17.64 $ 15.01 $12.87 $18.27 $17.60 $14.97
======= ======= ======= ====== ====== ====== ======
Total return (a)....................... 4.60% 18.10% 17.17% 20.77% 4.61% 18.03% 17.09%
Net assets, end of period (in
thousands)........................... $28,354 $24,202 $11,832 $1,962 $3,474 $2,910 $1,508
Ratio of expenses to average daily net
assets (c)........................... 1.60%(b) 1.60% 1.60% 1.60%(b) 1.60%(b) 1.60% 1.60%
Ratio of net investment income to
average daily net assets(c).......... (.39)%(b) (.21)% (.06)% .29%(b) (.39)%(b) (.21)% (.06)%
Portfolio turnover rate (excluding
short-term securities)............... 18.0% 25.3% 59.2% 5.8% 18.0% 25.3% 59.2%
<CAPTION>
CLASS C
-----------
PERIOD FROM
JANUARY 31,
1997(D) TO
JULY 31,
1997
-----------
<S> <C>
Net asset value, beginning of period... $10.69
------
Income from investment operations:
Net investment income................ .01
Net gains on securities (both
realized and unrealized)........... 2.18
------
Total from investment operations... 2.19
------
Less distributions:
Dividends from net investment
income............................. (.03)
Distributions from capital gains..... -
------
Total distributions................ (.03)
------
Net asset value, end of period......... $12.85
======
Total return (a)....................... 20.44%
Net assets, end of period (in
thousands)........................... $ 266
Ratio of expenses to average daily net
assets (c)........................... 1.60%(b)
Ratio of net investment income to
average daily net assets(c).......... .29%(b)
Portfolio turnover rate (excluding
short-term securities)............... 5.8%
</TABLE>
- ------------
25
<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
26
<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
27
<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 INDEX 500 FUND IF PRECEDED
OR ACCOMPANIED BY (a) THE CURRENT PROSPECTUS FOR THE ADVANTUS
INDEX 500 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.52035 Rev. 3-2000
