<PAGE>
[Logo]
ADVANTUS
FAMILY OF FUNDS
ANNUAL REPORT TO SHAREHOLDERS
ADVANTUS MONEY MARKET FUND
SEPTEMBER 30, 1996
<PAGE>
ADVANTUS MONEY MARKET FUND
TABLE OF CONTENTS
PERFORMANCE UPDATE 2
INVESTMENTS IN SECURITIES 4
STATEMENT OF ASSETS AND LIABILITIES 7
STATEMENT OF OPERATIONS 8
STATEMENT OF CHANGES IN NET ASSETS 9
NOTES TO FINANCIAL STATEMENTS 10
INDEPENDENT AUDITORS' REPORT 13
FEDERAL INCOME TAX INFORMATION 14
SHAREHOLDER SERVICES 15
<PAGE>
October 31, 1996 [PHOTO]
Dear Shareholders:
The nation's economic expansion, noted for its longevity, breadth and strength,
pressed forward in the third quarter of 1996. The Federal Reserve's decision not
to raise interest rates, coupled with the long awaited upswing of several key
foreign economies, offers new signs that the expansion, currently in its 23rd
quarter, will extend well into next year.
The financial markets shrugged off concerns about an overheated economy to post
record highs for both the Dow Jones Industrial Average and the NASDAQ. The
current optimism is based partly on a relatively unique phenomenon of this
expansion; industrial production, a harbinger of future economic activity, is
actually rebuilding depleted inventories. Normally associated with the early
stages of an economic recovery, this activity is unusual for a mature expansion
and indicates continued economic strength.
Gross Domestic Product (GDP), clipping along at 2.5 - 3.0 percent annually, is
hovering above the Fed's comfort level. However, consumer confidence is very
high and plays a definite role in our forecast. After experiencing the lowest
unemployment rates in nearly seven years, consumers today are employed,
confident and spending money which bodes well for continued growth. This higher
level of consumer spending is capable of sustaining a strong GDP without risk of
exhausting the recovery.
Inflation, a primary concern of a heated up economy, is playing only a minor
role in the current recovery. The abundance of material resources supplied from
the former communist countries in Eastern Europe and the Soviet Union has
mitigated the resource demands of the U.S. economy's strength. In addition, the
increase of the world's labor force, in China and elsewhere, provides lower cost
production options for many manufacturers, eliminating the need to raise prices.
Consequently, we can envision a scenario in which inflation and interest rates
actually edge lower in the coming months.
The Advantus Funds took full advantage of the extended expansion and recorded
impressive gains across broad industrial segments this year. While mandated wage
accelerations will affect many service related industries in the months ahead,
we remain cautiously optimistic that most sectors will experience strong growth
well into 1997. Further buttressing this report is the fact that in the first
year of every Presidential term since 1948, the markets have returned positive
performance.
The Advantus family of mutual funds offers a wide array of investment objectives
to capture growth potential in many different market segments. Our experienced
and dedicated portfolio managers will make the most of each opportunity.
Sincerely
[SIGNATURE]
Paul Gooding, President
Advantus Capital Management, Inc.
<PAGE>
ADVANTUS MONEY MARKET FUND
PERFORMANCE UPDATE
[PHOTO]
WAYNE SCHMIDT, CFA
PORTFOLIO MANAGER
The Advantus Money
Market Fund is a mutual fund designed for
investors seeking a high level of current
income consistent with preservation of
capital and liquidity. The Fund works to
achieve its objective by concentrating
investments in short-term money market
instruments including U.S. Treasury
Bills, high grade commercial paper and
bank certificates of deposit.
-Seeks to maintain stable net asset value.
-Free checkwriting and telephone redemption.
-Dividends declared daily and paid monthly.
INVESTMENT IN THE ADVANTUS MONEY MARKET FUND IS NEITHER INSURED NOR GUARANTEED
BY THE U.S. GOVERNMENT, AND THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE
TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE.
PERFORMANCE
The Advantus Money Market Fund's seven day compounded yield was 4.66 percent* as
of September 30, 1996. For the trailing twelve months, the Fund's total return
was 4.74 percent*.
Money market interest rates were remarkably stable throughout the year,
especially when compared to the volatility of longer term rates. The Federal
Reserve lowered key short term interest rates by 25 basis points in February and
has since elected to keep monetary policy unchanged. Over the past year, yields
on the three month U.S. Treasury Bill decreased 38 basis points to yield 5.03
percent on September 30, 1996. The six month U.S. Treasury Bill yield ended the
period 33 basis points lower at 5.25 percent.
PORTFOLIO RECAP
At each meeting since the Fed lowered rates, the Federal Open Market Committee
has decided to leave the Federal Funds rate and the discount rate unchanged at
5.25 percent and 5.00 percent, respectively. While the Federal Reserve stayed
the course, investor expectations called for a 25 basis points rate hike. These
expectations moved money market rates temporarily higher, but the lack of Fed
action brought short rates back into the low five percent area by September 30,
1996.
The Advantus Money Market Fund maintained the average days to maturity and kept
maturities evenly distributed between one and eighty days. This laddered
maturity structure keeps the Fund's yield responsive to changes in short term
interest rates. The Fund's average days to maturity was 37 days on September 30,
1996, 13 days shorter than the average taxable money market fund.
The Advantus Money Market Fund invests exclusively in U.S. Treasury Bills, U.S.
agencies, and high quality commercial paper to maintain both excellent liquidity
and quality. Corporate commercial paper, because of its yield advantage, is the
primary security in which the Fund invests. It accounted for 91.3 percent of the
Fund's net assets at the end of the period.
OUTLOOK
Short term interest rates for the next six months will be a function of economic
growth, inflationary expectations, and the Federal Reserve's future monetary
policy. The economy should continue to grow at a moderate pace in the upcoming
quarters, leaving the door open for the Federal Reserve to raise short term
rates. Inflation has been held in check to date, but there are reasons to be
concerned about future inflation. A strong U.S. economy coupled with low
unemployment, strong job growth, higher commodity prices
2
<PAGE>
ADVANTUS MONEY MARKET FUND
SEPTEMBER 30, 1996
and expanding global economies could push inflation rates higher in the months
ahead. The Federal Reserve has publicly stated that price stability is their
number one goal and they would not hesitate to raise short term rates in an
effort to keep economic growth and inflation under control. After the elections,
the Federal Reserve can act without political pressure and nudge short term
rates higher.
Short term interest rates should be stable to higher over the next six months as
the economy experiences moderate growth and the Fed acts to fight inflationary
pressures. For money market investors this will translate into attractive yields
in the months ahead. If the economy begins to slow down later in 1997, short
term interest rates should once again begin to fall.
AVERAGE DAYS TO MATURITY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
NUMBER OF DAYS
<S> <C>
10/3/95 44
10/10/95 41
10/17/95 44
10/24/95 54
10/31/95 49
11/7/95 48
11/14/95 43
11/21/95 40
11/28/95 36
12/5/95 36
12/12/95 35
12/19/95 40
12/26/95 39
1/2/96 38
1/9/96 36
1/16/96 34
1/23/96 41
1/30/96 39
2/6/96 39
2/13/96 40
2/20/96 38
2/27/96 43
3/5/96 40
3/12/96 39
3/19/96 39
3/26/96 39
4/2/96 43
4/9/96 45
4/16/96 43
4/23/96 44
4/30/96 38
5/7/96 39
5/14/96 40
5/21/96 44
5/28/96 48
6/4/96 42
6/11/96 41
6/18/96 36
6/25/96 39
7/2/96 26
7/9/96 26
7/16/96 31
7/23/96 33
7/30/96 40
8/6/96 50
8/13/96 34
8/20/96 39
8/27/96 42
9/3/96 40
9/10/96 35
9/17/96 40
9/24/96 39
9/30/96 37
</TABLE>
SEVEN-DAY COMPOUNDED YIELD*
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PERCENTAGE
<S> <C>
10/3/95 4.97%
10/10/95 5.02%
10/17/95 5.02%
10/24/95 4.99%
10/31/95 5.01%
11/7/95 5.06%
11/14/95 5.03%
11/21/95 5.22%
11/28/95 5.05%
12/5/95 5.01%
12/12/95 5.04%
12/19/95 5.06%
12/26/95 4.95%
1/2/96 4.97%
1/9/96 5.01%
1/16/96 4.92%
1/23/96 4.89%
1/30/96 4.85%
2/6/96 4.80%
2/13/96 4.71%
2/20/96 4.72%
2/27/96 4.62%
3/5/96 4.53%
3/12/96 4.52%
3/19/96 4.47%
3/26/96 4.48%
4/2/96 4.46%
4/9/96 4.49%
4/16/96 4.51%
4/23/96 4.52%
4/30/96 4.55%
5/7/96 4.55%
5/14/96 4.55%
5/21/96 4.57%
5/28/96 4.55%
6/4/96 4.58%
6/11/96 4.58%
6/18/96 4.61%
6/25/96 4.60%
7/2/96 4.60%
7/9/96 4.59%
7/16/96 4.65%
7/23/96 4.67%
7/30/96 4.66%
8/6/96 4.70%
8/13/96 4.69%
8/20/96 4.71%
8/27/96 4.71%
9/3/96 4.67%
9/10/96 4.63%
9/17/96 4.67%
9/24/96 4.67%
9/30/96 4.66%
</TABLE>
The seven-day compounded yield is computed by determining the net change in the
value of a hypothetical account having a balance of one share at the beginning
of a seven calendar day period, dividing that change by seven, adding one to the
quotient, raising the sum to the 365th power and subtracting one from the
result.
*Historical results are 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.
3
<PAGE>
ADVANTUS MONEY MARKET FUND
INVESTMENTS IN SECURITIES
SEPTEMBER 30, 1996
(Percentages of each investment category relate to total net assets.)
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE(a)
- --------- ------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (7.0%)
$1,775,000 Federal National Mortgage Association Discount
Note.............................................. 5.49% 12/06/96 $ 1,757,326
115,000 U.S. Treasury Bill................................. 5.27% 10/17/96 114,721
210,000 U.S. Treasury Bill................................. 5.19% 11/14/96 208,672
1,000,000 U.S. Treasury Bill................................. 5.29% 12/12/96 989,557
------------
Total U.S. government and agency obligations (cost: $3,070,276)....... 3,070,276
------------
COMMERCIAL PAPER (91.3%)
CAPITAL GOODS (1.8%)
Information Processing (1.8%)
300,000 Hewlett Packard.................................... 5.50% 10/01/96 299,955
485,000 Hewlett Packard.................................... 5.56% 10/15/96 483,907
------------
783,862
------------
BASIC INDUSTRIES (4.9%)
Chemicals (4.9%)
1,725,000 Dupont............................................. 5.39% 11/15/96 1,713,428
445,000 Monsanto Company (c)............................... 5.63% 11/19/96 441,632
------------
2,155,060
------------
CONSUMER STAPLES (38.0%)
Drugs (4.2%)
500,000 American Home Products Corporation (c) ..... 5.44% - 5.47% 10/10/96 499,259
1,345,000 American Home Products Corporation (c)............. 5.47% 10/18/96 1,341,409
------------
1,840,668
------------
Food (15.0%)
1,745,000 Cargill Inc........................................ 5.52% 10/21/96 1,739,534
1,000,000 Coca Cola Company.................................. 5.37% 11/18/96 992,841
1,150,000 Coca Cola Company.................................. 5.47% 12/13/96 1,137,424
1,745,000 CPC International Inc (c).......................... 5.45% 11/25/96 1,730,613
995,000 Pepsico Inc........................................ 5.36% 10/04/96 994,418
------------
6,594,830
------------
Entertainment (2.9%)
1,120,000 Walt Disney........................................ 5.42% 10/28/96 1,115,401
135,000 Walt Disney........................................ 5.53% 12/05/96 133,668
------------
1,249,069
------------
</TABLE>
See accompanying notes to investments in securities.
4
<PAGE>
ADVANTUS MONEY MARKET FUND
INVESTMENTS IN SECURITIES--CONTINUED
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE(a)
- --------- ------------
CONSUMER STAPLES--CONTINUED
<C> <S> <C> <C> <C>
Household Products (.7%)
$ 315,000 Colgate-Palmolive.................................. 5.49% 10/08/96 $ 314,626
------------
Management (4.5%)
2,000,000 PHH Corporation.................................... 5.39% 10/23/96 1,993,266
------------
Media (4.1%)
1,780,000 McGraw-Hill Company................................ 5.60% 10/08/96 1,777,844
------------
Printing and Publishing (3.6%)
1,600,000 Donnelly and Sons Company.......................... 5.43% 11/04/96 1,591,756
------------
Tobacco (3.0%)
1,330,000 Phillip Morris..................................... 5.53% 10/29/96 1,324,236
------------
CREDIT SENSITIVE (4.3%)
Hardware and Tools (4.3%)
285,000 Stanley Works...................................... 5.60% 10/16/96 284,310
1,500,000 Stanley Works...................................... 5.45% 11/19/96 1,488,958
125,000 Stanley Works...................................... 5.47% 12/10/96 123,684
------------
1,896,952
------------
ENERGY (7.5%)
Natural Gas Distribution (7.5%)
1,750,000 Laclede Gas Company................................ 5.52% 11/13/96 1,738,450
1,570,000 Northern Illinois Gas.............................. 5.48% 12/09/96 1,553,698
------------
3,292,148
------------
FINANCIAL (14.0%)
Auto Finance (6.6%)
1,080,000 Ford Motor Credit.................................. 5.42% 10/07/96 1,078,887
1,825,000 GMAC............................................... 5.43% 10/25/96 1,818,270
------------
2,897,157
------------
Consumer Finance (4.4%)
845,000 Associates Corporation............................. 5.57% 12/10/96 835,967
1,110,000 Associates Corporation............................. 5.53% 12/19/96 1,096,729
------------
1,932,696
------------
</TABLE>
See accompanying notes to investments in securities.
5
<PAGE>
ADVANTUS MONEY MARKET FUND
INVESTMENTS IN SECURITIES--CONTINUED
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE(a)
- --------- ------------
FINANCIAL--CONTINUED
<C> <S> <C> <C> <C>
Commercial Finance (3.0%)
$ 195,000 Ciesco............................................. 5.40% 10/30/96 $ 194,142
535,000 Ciesco............................................. 5.57% 12/03/96 529,836
625,000 Ciesco............................................. 5.58% 12/03/96 618,944
------------
1,342,922
------------
UTILITIES (20.8%)
Electric (11.3%)
1,330,000 Baltimore Gas and Electric......................... 5.42% 10/17/96 1,326,659
1,680,000 Carolina Power and Light........................... 5.52% 10/01/96 1,679,749
1,965,000 Midamerica Energy.................................. 5.37% 10/07/96 1,962,990
------------
4,969,398
------------
Telephones (9.5%)
845,000 AT&T Corporation................................... 5.52% 11/08/96 840,093
2,000,000 Bellsouth Telephone................................ 5.40% 10/22/96 1,993,547
1,360,000 Southwestern Bell Capital.......................... 5.44% 12/19/96 1,343,982
------------
4,177,622
------------
Total commercial paper (cost: $40,134,112)............................ 40,134,112
------------
Total investments in securities (cost: $43,204,388) (b)............... $ 43,204,388
------------
------------
</TABLE>
Notes to Investments in Securities
(a) Securities are valued by procedures described in note 1 to the financial
statements.
(b) Also represents the cost of securities for federal income tax purposes at
September 30, 1996.
(c) Commercial paper sold within terms of a private placement memorandum,
exempt from registration under Section 4(2) of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program of other
"accredited investors." These securities have been determined to be liquid
under guidelines established by the Board of Directors.
6
<PAGE>
ADVANTUS MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1996
<TABLE>
<S> <C>
ASSETS
Investment in securities, at value--see accompanying schedule for
detailed listing (identified cost: $43,204,388)...................... $ 43,204,388
Cash in bank on demand deposit........................................ 210,879
Receivable for Fund shares sold....................................... 612,840
-------------
Total assets...................................................... 44,028,107
-------------
LIABILITIES
Payable for Fund shares repurchased................................... 46,371
Payable to Adviser.................................................... 29,075
-------------
Total liabilities................................................. 75,446
-------------
Net assets applicable to outstanding capital stock.................... $ 43,952,661
-------------
-------------
Represented by:
Capital stock--authorized 10 billion shares of $.01 par value;
outstanding, 43,952,661 shares..................................... $ 439,527
Additional paid-in capital.......................................... 43,513,134
-------------
Total--representing net assets applicable to outstanding capital
stock............................................................ $ 43,952,661
-------------
-------------
Net asset value per share............................................. $ 1.00
-------------
-------------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
ADVANTUS MONEY MARKET FUND
STATEMENT OF OPERATIONS
YEAR ENDED SEPTEMBER 30, 1996
<TABLE>
<S> <C>
Investment income:
Interest........................................................................... $ 2,174,126
------------
Expenses (note 3):
Investment advisory fee............................................................ 198,141
Distribution fees.................................................................. 119,211
Transfer Agent fees and expenses................................................... 112,299
Adminstrative services fee......................................................... 34,000
Custodian fees..................................................................... 15,002
Auditing and accounting services................................................... 7,008
Legal fees......................................................................... 3,760
Directors' fees.................................................................... 659
Registration fees.................................................................. 41,611
Printing and shareholder reports................................................... 42,172
Insurance.......................................................................... 5,844
Other.............................................................................. 18,866
------------
Total expenses................................................................... 598,573
Less fees and expenses waived or absorbed:
Distribution fees................................................................ (119,211)
Other fund expenses.............................................................. (142,522)
------------
Total fees and expenses waived or absorbed....................................... (261,733)
------------
Total net expenses............................................................... 336,840
------------
Investment income--net........................................................... 1,837,286
------------
Net increase in net assets resulting from operations................................. $ 1,837,286
------------
------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
ADVANTUS MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
1996 1995
------------- -------------
<S> <C> <C>
Operations:
Investment income--net.................................... $ 1,837,286 $ 1,461,396
------------- -------------
Increase in net assets resulting from operations........ 1,837,286 1,461,396
------------- -------------
Distributions to shareholders from net investment income.... (1,837,286) (1,461,396)
------------- -------------
Capital share transactions, at a constant net asset value of
$1.00:
Proceeds from sales....................................... 78,484,028 65,293,589
Shares issued as a result of reinvested dividends......... 1,821,788 1,438,611
Payments for redemption of shares......................... (72,459,754) (56,344,359)
------------- -------------
Increase in net assets from capital share
transactions........................................... 7,846,062 10,387,841
------------- -------------
Total increase in net assets............................ 7,846,062 10,387,841
Net assets at beginning of year............................. 36,106,599 25,718,758
------------- -------------
Net assets at end of year................................... $ 43,952,661 $ 36,106,599
------------- -------------
------------- -------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
ADVANTUS MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Advantus Money Market Fund, Inc. (the Fund) is registered under the
Investment Company Act of 1940 (as amended) as a diversified, open-end
management investment company. On February 14, 1995, shareholders of the Fund
approved a name change to Advantus Money Market Fund, Inc. (effective March 1,
1995). Prior to March 1, 1995, the Fund was known as MIMLIC Money Market Fund,
Inc.
The significant accounting policies of 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 of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the period. Actual results could differ from those
estimates.
INVESTMENTS IN SECURITIES
All securities are valued at the close of each business day. Pursuant to
Rule 2a-7 of the Investment Company Act of 1940 (as amended), all securities are
valued at amortized cost which approximates market value, in order to maintain a
constant net asset value of $1.00.
Security transactions are accounted for on the date the securities are
purchased or sold. Interest income, including amortization of premium and
discount computed on a level yield basis, is accrued daily.
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 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 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.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income are declared daily and paid monthly in
cash or reinvested in additional shares. Capital gains, if any, are paid
annually.
10
<PAGE>
ADVANTUS MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(2) INVESTMENT SECURITY TRANSACTIONS
For the year ended September 30, 1996, purchases of securities and proceeds
from sales aggregated $224,352,145 and $216,184,003, respectively.
(3) EXPENSES AND RELATED PARTY TRANSACTIONS
On February 14, 1995 shareholders of the Fund approved a new investment
advisory agreement with Advantus Capital Management, Inc. (Advantus Capital or
the Adviser). Under the agreement, Advantus Capital manages the Fund's assets
and provides research, statistical and advisory services and pays related office
rental and executive expenses and salaries. Advantus Capital is a wholly-owned
subsidiary of MIMLIC Asset Management Company (MIMLIC Management) which, prior
to March 1, 1995, served as investment adviser to 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 .50 percent, which is the same as under
the old agreement with MIMLIC Management.
The Fund pays The Minnesota Mutual Life Insurance Company (Minnesota
Mutual), the parent of MIMLIC Management, a flat fee of $977 per month plus
$1.50 per month per account for transfer agent fees and expenses.
The Fund has adopted a Plan of Distribution relating to the payment of
certain distribution expenses pursuant to Rule 12b-1 under the Investment
Company Act of 1940 (as amended). The Plan provides for a fee up to .30 percent
of average daily net assets to be paid to MIMLIC Sales Corporation (MIMLIC
Sales), the underwriter of the Fund and wholly-owned subsidiary of MIMLIC
Management, to be used to pay certain expenses incurred in the distribution,
promotion and servicing of the Fund's shares. MIMLIC Sales is currently waiving
all of the distribution fees from the Fund.
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 pays an administrative services fee to Minnesota Mutual for
accounting, auditing, legal and other administrative services which Minnesota
Mutual provides. Prior to February 1, 1996, the administrative services fee was
$2,500 per month. Effective February 1, 1996, the administrative services fee is
$3,000 per month.
Advantus Capital directly incurs and pays the above operating expenses and
the Fund in turn reimburses Advantus Capital. During the year ended September
30, 1996, Advantus Capital voluntarily agreed to absorb $142,522 in expenses
which were otherwise payable by the Fund.
As of September 30, 1996, Minnesota Mutual and subsidiaries and the
directors and officers of the Fund as a whole owned 12,132,935 shares or 27.6
percent of the Fund's total shares outstanding.
During the year ended September 30, 1996, legal fees were paid to a law firm
of which the Fund's secretary is a partner in the amount of $3,760.
11
<PAGE>
ADVANTUS MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(4) FINANCIAL HIGHLIGHTS
Per share data for a share of capital stock and selected information for
each period are as follows:
<TABLE>
<CAPTION>
PERIOD FROM
YEAR ENDED NOVEMBER 1, YEAR ENDED
SEPTEMBER 30, 1993 TO OCTOBER 31,
---------------------- SEPTEMBER 30, ----------------
1996 1995(a) 1994(b) 1993 1992
---------- ---------- ------------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ------------- ------- -------
Income from investment operations:
Net investment income............ .046 .049 .027 .025 .033
---------- ---------- ------------- ------- -------
Total from investment
operations.................... .046 .049 .027 .025 .033
---------- ---------- ------------- ------- -------
Less distributions:
Dividends from net investment
income.......................... (.046) (.049) (.027) (.025) (.033)
---------- ---------- ------------- ------- -------
Total distributions............ (.046) (.049) (.027) (.025) (.033)
---------- ---------- ------------- ------- -------
Net asset value, end of period..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ------------- ------- -------
---------- ---------- ------------- ------- -------
Total return (c)................... 4.7% 5.0% 2.7%(d) 2.5% 3.4%
Net assets, end of period (in
thousands)........................ $43,953 $36,107 $25,719 $23,106 $23,136
Ratio of expenses to average daily
net assets (e).................... .85% .85% .85%(f) .85% .85%
Ratio of net investment income to
average daily net assets (e)...... 4.64% 4.93% 2.95%(f) 2.45% 3.35%
</TABLE>
- ---------
(a) Effective March 1, 1995, the Fund entered into a new investment advisory
agreement with Advantus Capital Management, Inc. Prior to March 1, 1995, the
Fund had an investment advisory agreement with MIMLIC Asset Management
Company.
(b) During 1994, the Fund changed its fiscal year end from October 31 to
September 30.
(c) Total return figures are based on a share outstanding throughout the period
and assumes reinvestment of distributions at net asset value.
(d) Total return is presented for the period from November 1, 1993 to September
30, 1994.
(e) The Fund's Adviser and Distributor voluntarily waived or absorbed $261,733,
$240,231, $222,862, $210,392 and $224,636 in expenses for the years ended
September 30, 1996 and 1995, the period ended September 30, 1994 and the
years ended October 31, 1993 and 1992, respectively. If the Fund had been
charged for these expenses, the ratio of expenses to average daily net
assets would have been 1.51%, 1.66%, 1.86%, 1.74% and 1.59%, respectively,
and the ratio of net investment income to average daily net assets would
have been 3.98%, 4.12%, 1.94%, 1.56% and 2.61%, respectively.
(f) Adjusted to an annual basis.
12
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Advantus Money Market Fund, Inc.:
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments in securities, of the Advantus Money
Market Fund, Inc. (the Fund) as of September 30, 1996 and the related statement
of operations for the year then ended, the statement of changes in net assets
for the two years then ended and the financial highlights for the two years then
ended, the period from November 1, 1993 to September 30, 1994 and each of the
years in the two-year period ended October 31, 1993. 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 generally accepted auditing
standards. Those standards require that we plan and perform the audits 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. Investment securities held in custody are confirmed to us by the
custodian. 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 September 30, 1996 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 generally accepted accounting
principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
November 1, 1996
13
<PAGE>
ADVANTUS MONEY MARKET 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 year ended September 30, 1996. Dividends for the 1996 calendar year will
be reported to you on Form 1099-Div in late January 1997. Shareholders should
consult a tax adviser on how to report these distributions for state and local
purposes.
Income distributions--taxable as dividend income, none qualifying for deduction
by corporations
<TABLE>
<CAPTION>
PER
PAYABLE DATE SHARE
- -------------------------------------------------------------------------------------- -----------
<S> <C>
October 31, 1995...................................................................... $ .0042
November 30, 1995..................................................................... .0041
December 31, 1995..................................................................... .0042
January 31, 1996...................................................................... .0041
February 29, 1996..................................................................... .0036
March 31, 1996........................................................................ .0037
April 30, 1996........................................................................ .0036
May 31, 1996.......................................................................... .0038
June 30, 1996......................................................................... .0037
July 31, 1996......................................................................... .0038
August 31, 1996....................................................................... .0039
September 30, 1996.................................................................... .0037
-----------
$ .0464
-----------
-----------
</TABLE>
14
<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 apply to a particular Fund.
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 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 four exchanges or telephone transfers between the Funds
each calendar year without incurring a transaction charge. Thereafter, there
will be a $7.50 transaction charge for each additional exchange or transfer
within the calendar year. Systematic Exchange Plans are exempt from this charge.
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 checks 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 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 TRANSFER: You may transfer money from one Advantus account to any
other Advantus account you own just by calling our toll free number. Sign up for
telephone exchanges on the Advantus Application or complete the telephone
authorization form.
SYSTEMATIC TRANSFER: If you have an Advantus Money Market account you may
transfer a set amount of money to another Advantus Fund to diversify your
investment portfolio and take advantage of dollar-cost averaging.
AUTOMATIC PAYMENT OF INSURANCE PREMIUMS: You may automatically pay your
Minnesota Mutual insurance premiums out of 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 on Advantus's non-money market funds.
SPECIAL PURCHASE PLANS: Our special purchase plans enable 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.) One of these plans--The
Automatic Investment Plan--allows you to invest automatically each month from
your checking or savings account.
IRAS, OTHER QUALIFIED PLAN: You can use the Advantus Family of Funds for your
Individual Retirement Account or other qualified plan including SEPS, profit
sharing, money purchase or defined benefit plans.
15
<PAGE>
GROUP INVESTMENT PLAN: This plan provides employers and employees with a
convenient means for investing in the funds through payroll deduction.
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. Amounts
over $1,000 may be wire transferred to your personal bank account. The
prevailing wire charge will be added to the withdrawal amount. To set this up,
please send a voided check 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.
ACCOUNT UPDATES: You'll receive written confirmation of every investment you
initiate (monthly statements for your Money Market account) and quarterly
reports to help you track all of your investments in the Advantus Family of
Funds, and annual tax statements. Semiannual 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 MIMLIC Sales Corporation, call 1-800-443-3677. Our
voice response system is available from 7 a.m. to 3 a.m. Monday through Friday,
and 8 a.m. to 5 p.m. on Saturday. This system allows you to access current net
asset values and your account balances.
HOW TO INVEST
You can invest in one or more of the eight Advantus Funds through your local
registered representative of MIMLIC Sales Corporation, distributor of the Funds.
Contact your representative for information and a prospectus for any of the
Advantus Funds you are interested in.
MINIMUM INVESTMENTS: Your initial investment in any of the Advantus Funds can
be as small as $25 when you use our Systematic 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.
Advantus Capital Management, Inc. manages eight mutual funds containing $346
million in assets in addition to $1.3 billion in assets for other clients.
Advantus Capital's seasoned portfolio managers average more than 11 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
16
<PAGE>
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]
MIMLIC SALES CORPORATION
400 ROBERT STREET NORTH
ST. PAUL, MN 55101-2098
1-800-443-3677
<PAGE>
MIMLIC SALES CORPORATION BULK RATE
400 ROBERT STREET NORTH U.S. POSTAGE PAID
ST. PAUL, MN 55101-2098 ST. PAUL, MN
PERMIT NO. 3547
FORWARDING AND RETURN POSTAGE GUARANTEED,
ADDRESS CORRECTION REQUESTED
F.48643 11/96
