<PAGE>
[LOGO]
SEMI-ANNUAL REPORT TO SHAREHOLDERS
ADVANTUS MONEY MARKET FUND
MARCH 31, 1997
[GRAPHIC]
<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
STATEMENTS OF CHANGES IN NET ASSETS 9
NOTES TO FINANCIAL STATEMENTS 10
SHAREHOLDER SERVICES 13
<PAGE>
April 30, 1997 [PHOTO]
Dear Shareholders:
The last six months have provided investors with some high points and some low.
At year end 1996, the stock market exceeded nearly all expectations. Driven by
ideal fundamentals, combined with unprecedented levels of money flowing into the
market, S&P 500 operating earnings grew by nine percent, while the total return
for the S&P 500 Index was over 20 percent. This trend continued into the first
quarter 1997.
Investors started reacting to possible Federal Reserve action to curb the
economy in the second half of February. Even before short-term money rates were
raised by 1/4 percent at the end of March, the stock market started to drop.
After reaching a high on February 19, the S&P 500 declined by 7.3 percent
resulting in a 2.7 percent increase for the quarter. The largest companies in
the S&P 500 outperformed all other companies and were the driving force behind
the Index.
The investment grade bond market posted low single digit returns at the end of
1997. The Fed's increase in money rates had a negative impact on bond prices. At
the end of the first quarter 1997, the interest rate on the two year Treasury
note increased 54 basis points to yield 6.41 percent. The 30-year U.S. Treasury
Bond closed the period yielding 7.10 percent, 46 basis points higher for the
quarter.
The long-term outlook continues to be favorable. We expect economic growth to
slow to around 2.5 percent from 3.2 percent last year as the result of the
tighter money policy. In this environment, the current level of interest rates
should reward bond investors with historically higher real rates of return which
may eventually translate into bond price appreciation. For 1997, we still
believe investors may see high single digit bond returns. The growth in equity
values should slow as corporate profits decline during the year, to
approximately half the rate of 1996.
Moderate economic growth, low inflation, rising corporate profits, a declining
Federal deficit and strong corporate cash flow provide the catalyst for what we
believe will be a positive financial environment for the balance of the year.
Determining which investments will perform well in both the near and long-term
requires professional experience. Advantus Capital Management, Inc. offers a
family of ten funds designed to help you reach your financial goals with a
thoughtful, well-conceived investment strategy.
Sincerely,
/s/Paul Gooding
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 plans 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 compound yield was 4.60 percent* as
of March 31, 1997. For the six month period ending March 31, 1997, the Fund
returned 2.25 percent.*
Money market interest rates increased slightly during the quarter as the Federal
Reserve raised the Fed Funds target rate by 25 basis points in March. During the
past six months, the yield on the three month U.S. Treasury Bill increased 28
basis points to yield 5.31 percent. The six month U.S. Treasury Bill also ended
the period 28 basis points higher to yield 5.53 percent on March 31, 1997.
PORTFOLIO RECAP
This was the Federal Reserve's first move to change interest rates since the 25
basis cut in rates back in January 1996. Alan Greenspan billed the March 1997
rate hike as a preemptive strike against potential future inflation. Fixed
income investors expected the Fed to make this move and short term interest
rates had already crept 25 basis points higher prior to the announcement.
In the Advantus Money Market Fund, the average days to maturity was 40 days at
quarter end, 13 days shorter than the average taxable money market fund. The
shorter average days to maturity allows the portfolio to be more responsive to
changes in interest rates. This is a positive attribute in a rising rate
environment. Also, the Fund's maturities are evenly distributed between 2 and
102 days, thus minimizing any reinvestment risk.
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 asset class used. It accounted for 97 percent of the Fund's assets at
the end of the period.
OUTLOOK
Short-term interest rates should continue to be relatively stable with an upward
bias until mid-year. The Federal Reserve is closely monitoring economic growth
and inflation and could potentially tighten credit again if the economic
fundamentals dictate. The economy will continue to grow at a moderate pace in
the upcoming quarters and inflation should remain around three percent. With
money market yields in the low to mid five percent range and inflation at three
percent, money market funds will likely offer investors an attractive return on
their investment.
2
<PAGE>
ADVANTUS MONEY
MARKET FUND
MARCH 31, 1997
AVERAGE DAYS TO MATURITY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
NUMBER OF DAYS
<S> <C>
10/1/96 39
10/8/96 39
10/15/96 34
10/22/96 38
10/29/96 41
11/5/96 39
11/12/96 34
11/19/96 45
11/26/96 43
12/3/96 41
12/10/96 48
12/17/96 48
12/24/96 50
12/31/96 47
1/7/97 43
1/14/97 46
1/21/97 40
1/28/97 38
2/4/97 35
2/11/97 38
2/18/97 37
2/25/97 36
3/4/97 41
3/11/97 38
3/18/97 40
3/25/97 44
4/1/97
</TABLE>
SEVEN-DAY COMPOUNDED YIELD*
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PERCENTAGE
<S> <C>
10/1/96 4.65%
10/8/96 4.67%
10/15/96 4.63%
10/22/96 4.60%
10/29/96 4.62%
11/5/96 4.58%
11/12/96 4.60%
11/19/96 4.59%
11/26/96 4.61%
12/3/96 4.58%
12/10/96 4.61%
12/17/96 4.57%
12/24/96 4.60%
12/31/96 4.61%
1/7/97 4.54%
1/14/97 4.60%
1/21/97 4.57%
1/28/97 4.59%
2/4/97 4.61%
2/11/97 4.59%
2/18/97 4.59%
2/25/97 4.54%
3/4/97 4.52%
3/11/97 4.58%
3/18/97 4.58%
3/25/97 4.63%
4/1/97
</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 performance is not an indication of future performance. Investment
returns on 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
MARCH 31, 1997
(UNAUDITED)
(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 (3.4%)
$ 965,000 Federal Home Loan Mortgage Discount Note............... 5.71% 07/01/97 $ 951,313
405,000 U.S. Treasury Bill..................................... 5.24% 05/22/97 402,005
345,000 U.S. Treasury Bill..................................... 5.36% 06/19/97 340,998
-----------
Total U.S. government and agency obligations (cost: $1,694,316)........... 1,694,316
-----------
COMMERCIAL PAPER (95.3%)
CAPITAL GOODS (9.0%)
Electronics (4.1%)
2,100,000 Xerox Corporation...................................... 5.48% 06/09/97 2,078,195
-----------
Pollution Control (4.9%)
285,000 WMX Technology (c)..................................... 5.45% 05/06/97 283,481
330,000 WMX Technology (c)..................................... 5.71% 05/06/97 328,152
1,835,000 WMX Technology (c)..................................... 5.45% 04/11/97 1,832,017
-----------
2,443,650
-----------
BASIC INDUSTRIES (2.7%)
Chemicals (2.7%)
1,365,000 Du Pont................................................ 5.35% 05/20/97 1,355,123
-----------
CONSUMER STAPLES (32.8%)
Drugs (8.8%)
2,400,000 American Home Products (c)............................. 5.42% 04/10/97 2,396,467
190,000 Schering Corporation................................... 5.34% 04/02/97 189,945
835,000 Schering Corporation................................... 5.44% 04/08/97 834,022
1,000,000 Schering Corporation................................... 5.46% 05/13/97 993,729
-----------
4,414,163
-----------
Food (13.6%)
1,610,000 Cargill Inc............................................ 5.41% 04/07/97 1,608,350
2,435,000 Anheuser-Busch......................................... 5.44% 04/18/97 2,428,498
625,000 Archer Daniels Midland................................. 5.44% 05/09/97 621,405
235,000 Cargill Inc............................................ 5.39% 04/16/97 234,449
205,000 Coca-Cola.............................................. 5.45% 06/09/97 202,883
1,740,000 CPC International Inc (c).............................. 5.42% 05/05/97 1,731,068
-----------
6,826,653
-----------
Management (4.8%)
690,000 PHH Corporation........................................ 5.38% 04/07/97 689,293
1,475,000 PHH Corporation........................................ 5.37% 04/08/97 1,473,276
275,000 PHH Corporation........................................ 5.40% 04/22/97 274,113
-----------
2,436,682
-----------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
ADVANTUS MONEY MARKET FUND
INVESTMENTS IN SECURITIES--CONTINUED
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE(a)
- ---------- -----------
<C> <S> <C> <C> <C>
CONSUMER STAPLES--CONTINUED
Media (4.7%)
$2,400,000 McGraw-Hill Company.................................... 5.57% 07/11/97 $ 2,363,280
-----------
Printing and Publishing (.9%)
435,000 R.R. Donnelly and Sons Company......................... 5.43% 04/14/97 434,103
-----------
CREDIT SENSITIVE (2.7%)
Hardware and Tools (2.7%)
150,000 Stanley Works.......................................... 5.37% 04/22/97 149,519
1,210,000 Stanley Works.......................................... 5.37% 04/22/97 1,206,118
-----------
1,355,637
-----------
ENERGY (1.0%)
Oil and Gas Production (1.0%)
500,000 Atlantic Richfield..................................... 5.43% 04/16/97 498,824
-----------
FINANCIAL (22.0%)
Auto Finance (6.5%)
1,145,000 Ford Motor Credit...................................... 5.43% 04/22/97 1,141,292
2,160,000 GMAC................................................... 5.49% 04/03/97 2,159,037
-----------
3,300,329
-----------
Commercial Finance (15.5%)
1,740,000 Ciesco Limited Partnership............................. 5.41% 05/14/97 1,728,793
1,230,000 Pitney Bowes........................................... 5.50% 06/18/97 1,215,559
1,060,000 Pitney Bowes........................................... 5.58% 06/18/97 1,047,369
1,325,000 GE Capital Corporation................................. 5.49% 04/28/97 1,319,497
2,530,000 SBC Community.......................................... 5.53% 06/09/97 2,503,484
-----------
7,814,702
-----------
UTILITIES (25.1%)
Electric (9.3%)
1,915,000 Alabama Power.......................................... 5.38% 04/30/97 1,906,622
1,000,000 Baltimore Gas and Electric............................. 5.58% 05/19/97 992,582
1,785,000 Carolina Power and Light............................... 5.41% 04/25/97 1,778,430
-----------
4,677,634
-----------
Telephones (15.8%)
945,000 Ameritech.............................................. 5.35% 04/23/97 941,842
2,500,000 AT&T Corporation....................................... 5.34% 05/23/97 2,480,861
2,200,000 Bellsouth Telephone.................................... 5.41% 05/27/97 2,181,643
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
ADVANTUS MONEY MARKET FUND
INVESTMENTS IN SECURITIES--CONTINUED
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE(a)
- ---------- -----------
<C> <S> <C> <C> <C>
UTILITIES--CONTINUED
$2,346,000 Bellsouth Telephone.................................... 5.42% 05/28/97 $ 2,326,043
-----------
7,930,389
-----------
Total commercial paper (cost: $47,929,364)................................ 47,929,364
-----------
Total investments in securities (cost: $49,623,680) (b)................... $49,623,680
-----------
-----------
</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
March 31, 1997.
(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." This security has been determined to be liquid under
guidelines established by the Board of Directors.
6
<PAGE>
ADVANTUS MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1997
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment in securities, at value--see accompanying
schedule for detailed listing (identified cost:
$49,623,680)............................................... $ 49,623,680
Cash in bank on demand deposit.............................. 497,445
Receivable for Fund shares sold............................. 550,590
------------
Total assets............................................ 50,671,715
------------
LIABILITIES
Payable for Fund shares redeemed............................ 325,856
Payable to Adviser.......................................... 35,037
------------
Total liabilities....................................... 360,893
------------
Net assets applicable to outstanding capital stock.......... $ 50,310,822
------------
------------
Represented by:
Capital stock--authorized 10 billion shares of $.01 par
value; outstanding, 50,310,822 shares.................... $ 503,108
Additional paid-in capital................................ 49,807,714
------------
Total--representing net assets applicable to outstanding
capital stock.......................................... $ 50,310,822
------------
------------
Net asset value per share................................... $ 1.00
------------
------------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
ADVANTUS MONEY MARKET FUND
STATEMENT OF OPERATIONS
PERIOD FROM OCTOBER 1, 1996 TO MARCH 31, 1997
(UNAUDITED)
<TABLE>
<S> <C>
Investment income:
Interest.................................................. $ 1,263,735
-----------
Expenses (note 3):
Investment advisory fee................................... 118,188
Distribution fees......................................... 70,913
Transfer Agent fees and expenses.......................... 64,263
Administrative services fee............................... 18,000
Custodian fees............................................ 7,726
Auditing and accounting services.......................... 7,295
Legal fees................................................ 1,759
Directors' fees........................................... 619
Registration fees......................................... 21,376
Printing and shareholder reports.......................... 22,958
Insurance................................................. 3,148
Other..................................................... 8,383
-----------
Total expenses........................................ 344,628
Less fees and expenses waived or absorbed:
Distribution fees....................................... (70,913)
Other fund expenses..................................... (72,796)
-----------
Total fees and expenses waived or absorbed............ (143,709)
-----------
Total net expenses.................................... 200,919
-----------
Investment income--net................................ 1,062,816
-----------
Net increase in net assets resulting from operations........ $ 1,062,816
-----------
-----------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
ADVANTUS MONEY MARKET FUND
STATEMENTS OF CHANGES IN NET ASSETS
PERIOD FROM OCTOBER 1, 1996 TO MARCH 31, 1997
AND YEAR ENDED SEPTEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
1997 1996
------------- -------------
<S> <C> <C>
Operations:
Investment income--net.......................... $ 1,062,816 $ 1,837,286
------------- -------------
Increase in net assets resulting from
operations................................... 1,062,816 1,837,286
------------- -------------
Distributions to shareholders from net investment
income........................................... (1,062,816) (1,837,286)
------------- -------------
Capital share transactions, at a constant net
asset value of $1.00:
Proceeds from sales............................. 47,573,737 78,484,028
Proceeds from issuance of shares as a result of
reinvested dividends........................... 1,051,874 1,821,788
Payments for redemption of shares............... (42,267,450) (72,459,754)
------------- -------------
Increase in net assets from capital share
transactions................................. 6,358,161 7,846,062
------------- -------------
Total increase in net assets.................. 6,358,161 7,846,062
Net assets at beginning of period................. 43,952,661 36,106,599
------------- -------------
Net assets at end of period....................... $ 50,310,822 $ 43,952,661
------------- -------------
------------- -------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
ADVANTUS MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997
(UNAUDITED)
(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
resulting 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 bond 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.
(2) INVESTMENT SECURITY TRANSACTIONS
For the period from October 1, 1996 to March 31, 1997, purchases of
securities and proceeds from sales aggregated $134,331,823 and $127,912,531,
respectively.
10
<PAGE>
ADVANTUS MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(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, equal to $3,000 per month, to
Minnesota Mutual for accounting, auditing, legal and other administrative
services which Minnesota Mutual provides.
Advantus Capital directly incurs and pays the above operating expenses and
the Fund in turn reimburses Advantus Capital. During the period from October 1,
1996 to March 31, 1997, Advantus Capital voluntarily agreed to absorb $72,796 in
expenses which were otherwise payable by the Fund.
As of March 31, 1997, Minnesota Mutual and subsidiaries and the directors
and officers of the Fund as a whole own 15,846,265 shares or 31.5 percent of the
Fund's total shares outstanding.
Legal fees were paid to a law firm of which the Fund's secretary is a
partner in the amount of $1,759.
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 PERIOD FROM
OCTOBER 1, YEAR ENDED NOVEMBER 1, YEAR ENDED OCTOBER
1996 TO SEPTEMBER 30, 1993 TO 31,
MARCH 31, ------------------- SEPTEMBER 30, -------------------
1997 1996 1995(a) 1994(b) 1993 1992
----------- -------- -------- ------------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
----------- -------- -------- ------------- -------- --------
Income from investment operations:
Net investment income........................... .022 .046 .049 .027 .025 .033
----------- -------- -------- ------------- -------- --------
Total from investment operations.............. .022 .046 .049 .027 .025 .033
----------- -------- -------- ------------- -------- --------
Less distributions:
Dividends from net investment income............ (.022) (.046) (.049) (.027) (.025) (.033)
----------- -------- -------- ------------- -------- --------
Total distributions........................... (.022) (.046) (.049) (.027) (.025) (.033)
----------- -------- -------- ------------- -------- --------
Net asset value, end of period.................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
----------- -------- -------- ------------- -------- --------
----------- -------- -------- ------------- -------- --------
Total return (c).................................. 2.3%(g) 4.7% 5.0% 2.7%(d) 2.5% 3.4%
Net assets, end of period (in thousands).......... $50,311 $ 43,953 $ 36,107 $25,719 $ 23,106 $ 23,136
Ratio of expenses to average daily net assets
(e).............................................. .85%(f) .85% .85% .85%(f) .85% .85%
Ratio of net investment income to average daily
net assets (e)................................... 4.50%(f) 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 $143,709,
$261,733, $240,231, $222,862, $210,392 and $224,636 in expenses for the
period from October 1, 1996 to March 31, 1997, 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 1.46%, 1.51%, 1.66%, 1.86%, 1.74% and 1.59%, respectively, and the
investment income to average daily net assets would have been 3.89%, 3.98%,
4.12%, 1.94%, 1.56% and 2.61%, respectively.
(f) Adjusted to an annual basis.
(g) Total return is presented for the period from October 1, 1996 to March 31,
1997.
12
<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' 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, SIMPLE,
profit sharing, money purchase or defined benefit plans.
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. Sign up for
telephone redemption on the Advantus Application or complete a Service Request
Form. To have the redemption automatically deposited into your checking account,
please send a voided check from your bank.
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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 (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. 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. Our
voice response system is available from 7 a.m. to 3 a.m. Central Time Monday
through Friday, and 8 a.m. to 5 p.m. Central Time 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 ten 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 eleven mutual funds containing
$2.3 billion in assets in addition to $1.4 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
Advantus Venture Fund
Advantus Index 500 Fund
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THIS REPORT HAS BEEN PREPARED FOR SHAREHOLDERS AND MAY BE DISTRIBUTED
TO OTHERS ONLY IF PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS.
READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.
[ADVANTUS -TM- FAMILY OF FUNDS]
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.48642 5/97
