<PAGE>
[LOGO]
ADVANTUS
FAMILY OF FUNDS
ANNUAL REPORT TO SHAREHOLDERS
ADVANTUS MONEY MARKET FUND
SEPTEMBER 30, 1997
<PAGE>
ADVANTUS MONEY MARKET FUND
TABLE OF CONTENTS
PERFORMANCE UPDATE 2
INVESTMENTS IN SECURITIES 4
STATEMENT OF ASSETS AND LIABILITIES 6
STATEMENT OF OPERATIONS 7
STATEMENTS OF CHANGES IN NET ASSETS 8
NOTES TO FINANCIAL STATEMENTS 9
INDEPENDENT AUDITORS' REPORT 12
FEDERAL INCOME TAX INFORMATION 13
SHAREHOLDER SERVICES 14
<PAGE>
LETTER FROM THE PRESIDENT [PHOTO]
Dear Shareholders:
The 1997 fiscal year has been a rewarding one for investors. On the equity side,
despite the anticipation of a market downturn, the equity market continued to
climb. Over the twelve month period ending September 30, 1997, the S&P 500*
gained 40.5 percent; over 26 percent of that gain was for the trailing six
months. We saw a slight market decline of 5.5 percent in August, but stocks
bounced back by the end of September.
As the stock market continues to push forward, some investors lose sight of the
importance of maintaining a position of their assets in bonds. Investors who
diversify their portfolio assets between stocks and bonds can better position
their portfolio in the event of stock market downturns. There was not a stock
market correction of major significance during this reporting period.
The bond market demonstrated strong performance throughout 1997. For the twelve
months ending September 30, 1997, the Lehman Corporate Bond Index** returned
10.8 percent. This is a 6 percent increase over last year's return. Stable
interest rates and low inflation have contributed to the bond market's stellar
performance.
Your Advantus Family of Funds includes a range of equity and bond offerings. I
recommend that you talk with your Ascend financial representative to ensure that
your portfolio has an appropriate balance for your situation. As we continue to
watch the stock market hit new highs, we cannot assume that upward moves are a
continuing trend.
In the pages that follow, the Fund's manager will give you more information
about the economy and conditions within the market that may have affected the
Fund during this reporting period. The manager will specifically discuss your
Advantus Fund's performance and share some strategies that were used to manage
the Fund.
We assert that a long-range view of investing provides the greatest benefit to
our shareholders. We encourage you to maintain a long-range view, and we believe
that you will derive the greatest benefit by doing so.
Sincerely,
[SIGNATURE]
Paul Gooding, President
Advantus Capital Management, Inc.
*The S&P 500 is a broad, unmanaged index of 500 common stocks which are
representative of the U.S. stock market overall. The Index includes
approximately 380 industrials, 10 transportations, 45 financials, and 65
utilities.
**The Lehman Corporate Bond Index includes all fixed-rate, publicly traded,
investment grade corporate debt with at least one year to maturity and $50
million par value outstanding.
<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 seeks 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
At September 30, 1997 the seven day compound yield of the Advantus Money Market
Fund was 4.81 percent.* The Fund's total return was 4.69 percent* for the year
ended September 30, 1997.
Money market interest rates ended the period slightly lower, despite the Federal
Reserve move to raise the Fed Funds target 25 basis to 5.50 percent in March.
For the twelve months ended in September, the yield on the three-month U.S.
Treasury Bill increased just 7 basis points to yield 5.09 percent. The six-month
U.S. Treasury Bill ended the period 1 basis point higher to yield 5.27 percent.
PORTFOLIO RECAP
The Federal Reserve raised the Fed Funds target by 25 basis points in March and
spent the past six months monitoring the economic developments and decided to
leave short-term rates unchanged. With the Fed on hold, there has been very
little fluctuation in short-term interest rates creating a very stable
environment for money market investors.
In the Fund, the average days to maturity was 44 days at the end of the period,
11 days shorter than the average money market fund. The Fund's average days to
maturity are evenly distributed between 3 and 99 days, thus smoothing out any
reinvestment risk.
The Fund invests exclusive 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 95.5 percent of the Fund's net assets at the end of
the period.
OUTLOOK
We believe short-term interest rates should continue to be relatively stable
with the potential for an upward bias as we move into 1998. The Federal Reserve
is closely monitoring economic growth and inflation and could follow up on their
previous 25 basis point tightening with another one if the economic fundamentals
dictate. The economy will likely continue to grow at a moderate pace in the
upcoming quarters and inflation should remain at or below three percent. With
money market yields in the low five percent range and inflation at below three
percent, money market funds may offer investors an attractive real return on
their investment.
2
<PAGE>
ADVANTUS MONEY
MARKET FUND
AVERAGE DAYS TO MATURITY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
ADVANTUS MONEY MARKET FUND NUMBER OF DAYS
<S> <C>
10/1/1996 39
10/8/1996 39
10/15/1996 34
10/22/1996 38
10/29/1996 41
11/5/1996 39
11/12/1996 34
11/19/1996 45
11/26/1996 43
12/3/1996 41
12/10/1996 48
12/17/1996 48
12/24/1996 50
12/31/1996 47
1/7/1997 43
1/14/1997 46
1/21/1997 40
1/28/1997 38
2/4/1997 35
2/11/1997 38
2/18/1997 37
2/25/1997 36
3/4/1997 41
3/11/1997 38
3/18/1997 40
3/25/1997 44
4/1/1997 39
4/8/1997 41
4/15/1997 45
4/22/1997 41
4/29/1997 38
5/6/1997 37
5/13/1997 36
5/20/1997 34
5/27/1997 44
6/3/1997 45
6/10/1997 48
6/17/1997 42
6/24/1997 44
7/1/1997 43
7/8/1997 42
7/15/1997 46
7/22/1997 43
7/29/1997 42
8/5/1997 42
8/12/1997 40
8/19/1997 39
8/26/1997 39
9/2/1997 37
9/9/1997 41
9/16/1997 42
9/23/1997 45
9/30/1997 43
</TABLE>
SEVEN-DAY COMPOUND YIELD*
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
ADVANTUS MONEY MARKET FUND PERCENTAGE
<S> <C>
10/1/1996 4.65%
10/8/1996 4.67%
10/15/1996 4.63%
10/22/1996 4.60%
10/29/1996 4.62%
11/5/1996 4.58%
11/12/1996 4.60%
11/19/1996 4.59%
11/26/1996 4.61%
12/3/1996 4.58%
12/10/1996 4.61%
12/17/1996 4.57%
12/24/1996 4.60%
12/31/1996 4.61%
1/7/1997 4.54%
1/14/1997 4.60%
1/21/1997 4.57%
1/28/1997 4.59%
2/4/1997 4.61%
2/11/1997 4.59%
2/18/1997 4.59%
2/25/1997 4.54%
3/4/1997 4.52%
3/11/1997 4.58%
3/18/1997 4.58%
3/25/1997 4.63%
4/1/1997 4.59%
4/8/1997 4.48%
4/15/1997 5.37%
4/22/1997 4.61%
4/29/1997 4.85%
5/6/1997 4.69%
5/13/1997 4.82%
5/20/1997 4.76%
5/27/1997 4.87%
6/3/1997 4.40%
6/10/1997 4.88%
6/17/1997 4.95%
6/24/1997 4.88%
7/1/1997 4.91%
7/8/1997 4.89%
7/15/1997 5.09%
7/22/1997 4.75%
7/29/1997 4.93%
8/5/1997 4.98%
8/12/1997 5.08%
8/19/1997 4.89%
8/26/1997 4.92%
9/2/1997 4.27%
9/9/1997 4.69%
9/16/1997 4.84%
9/23/1997 4.89%
9/30/1997 4.89%
</TABLE>
The seven-day compound 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 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, 1997
(Percentages of each investment category relate to total net assets.)
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE(A)
- --------- ------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (3.2%)
$$1,480,000 U.S. Treasury Bill............................... 4.929% 12/11/97 $ 1,465,946
275,000 U.S. Treasury Bill............................... 5.091% 10/02/97 274,961
------------
Total U.S. government obligations (cost: $1,740,907)................... 1,740,907
------------
COMMERCIAL PAPER (95.5%)
BASIC MATERIALS (9.6%)
Chemicals (9.6%)
2,530,000 E.I. Du Pont De Nemours & Company................ 5.682% 11/05/97 2,516,495
1,075,000 Monsanto Company(c).............................. 5.664% 12/05/97 1,064,266
1,645,000 Monsanto Company(c).............................. 5.712% 11/12/97 1,634,367
------------
5,215,128
------------
COMMUNICATION SERVICES (10.7%)
Telephone (10.7%)
1,830,000 Ameritech Corporation............................ 5.703% 11/21/97 1,815,618
2,040,000 Bellsouth Telecommunications..................... 5.589% 10/07/97 2,038,127
2,000,000 SBC Communications............................... 5.651% 10/28/97 1,991,559
------------
5,845,304
------------
CONSUMER CYCLICAL (7.3%)
Publishing (3.6%)
1,960,000 Gannett Company.................................. 5.586% 10/17/97 1,955,213
------------
Retail (3.7%)
2,040,000 Toys R Us, Inc................................... 5.593% 10/10/97 2,037,191
------------
CONSUMER STAPLES (25.0%)
Food (15.4%)
2,640,000 Campbell Soup(c)................................. 5.879% 01/07/98 2,598,976
2,650,000 Cargill, Inc..................................... 5.615% 12/12/97 2,620,969
285,000 CPC International(c)............................. 5.640% 11/13/97 283,119
1,455,000 General Mills Inc................................ 5.582% 10/30/97 1,448,576
1,445,000 HJ Heinz Company................................. 5.590% 11/03/97 1,437,734
------------
8,389,374
------------
Service (9.6%)
2,625,000 R R Donnelly & Sons Company...................... 5.634% 10/27/97 2,614,507
2,375,000 McGraw-Hill Company.............................. 5.609% 12/23/97 2,345,090
245,000 McGraw-Hill Company.............................. 5.645% 11/25/97 242,933
------------
5,202,530
------------
</TABLE>
See accompanying notes to investments in securities.
4
<PAGE>
ADVANTUS MONEY MARKET FUND
INVESTMENTS IN SECURITIES--CONTINUED
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE(A)
- --------- ------------
<C> <S> <C> <C> <C>
ENERGY (3.5%)
Oil (3.5%)
$1,900,000 Atlantic Richfield Company....................... 5.754% 10/03/97 $ 1,899,393
------------
FINANCIAL (23.0%)
Auto Finance (4.3%)
2,400,000 Ford Motor Credit Company........................ 5.657% 01/02/98 2,365,900
------------
Commercial Finance (7.6%)
1,890,000 General Electric Capital Corporation............. 5.643% 12/19/97 1,867,195
2,260,000 Xerox Credit..................................... 5.612% 11/20/97 2,242,757
------------
4,109,952
------------
Consumer Finance (11.1%)
1,740,000 American General Finance Corporation............. 5.642% 10/08/97 1,738,093
1,710,000 Associates Corporation........................... 5.605% 12/29/97 1,686,943
2,650,000 Norwest Financial................................ 5.679% 10/17/97 2,643,328
------------
6,068,364
------------
HEALTH CARE (4.8%)
Drugs (4.8%)
2,600,000 American Home Products Corporation(c)............ 5.630% 10/15/97 2,594,320
------------
UTILITES (11.6%)
Electric Companies (11.6%)
990,000 Alabama Power Company............................ 5.622% 10/09/97 988,765
825,000 Alabama Power Company............................ 5.629% 11/20/97 818,687
815,000 Alabama Power Company............................ 5.617% 11/13/97 809,643
1,400,000 Baltimore Gas and Electric Company............... 5.606% 10/28/97 1,398,219
1,510,000 Madison Gas and Electric......................... 5.638% 11/17/97 1,503,282
355,000 Midamerican Energy............................... 5.650% 10/24/97 353,723
270,000 Midamerican Energy............................... 5.677% 11/03/97 268,621
205,000 Midamerican Energy............................... 5.665% 10/06/97 204,839
------------
6,345,779
------------
Total commercial paper (cost: $52,028,448)............................. 52,028,448
------------
Total investments in securities (cost: $53,769,355)(b)................. $ 53,769,355
------------
------------
</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, 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 or other
"accredited investors." This security has been determined to be liquid under
guidelines established by the Board of Directors.
5
<PAGE>
ADVANTUS MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1997
<TABLE>
<S> <C>
ASSETS
Investment in securities, at value--see accompanying
schedule for detailed listing
(identified cost: $53,769,355)............................. $ 53,769,355
Cash in bank on demand deposit.............................. 618,243
Receivable for Fund shares sold............................. 540,652
------------
Total assets............................................ 54,928,250
------------
LIABILITIES
Payable for Fund shares repurchased......................... 395,552
Payable to Adviser.......................................... 41,781
------------
Total liabilities....................................... 437,333
------------
Net assets applicable to outstanding capital stock.......... $ 54,490,917
------------
------------
Represented by:
Capital stock--authorized 10 billion shares of $.01 par
value; outstanding, 54,490,917 shares.................... $ 544,909
Additional paid-in capital................................ 53,946,008
------------
Total--representing net assets applicable to outstanding
capital stock.......................................... $ 54,490,917
------------
------------
Net asset value per share................................... $ 1.00
------------
------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
ADVANTUS MONEY MARKET FUND
STATEMENT OF OPERATIONS
YEAR ENDED SEPTEMBER 30, 1997
<TABLE>
<S> <C>
Investment income:
Interest.................................................. $ 2,721,911
-----------
Expenses (note 3):
Investment advisory fee................................... 249,110
Distribution fees......................................... 149,466
Transfer Agent fees and expenses.......................... 133,574
Administrative services fee............................... 36,000
Custodian fees............................................ 14,316
Auditing and accounting services.......................... 12,083
Legal fees................................................ 2,394
Directors' fees........................................... 919
Registration fees......................................... 42,387
Printing and shareholder reports.......................... 41,154
Insurance................................................. 5,297
Other..................................................... 25,715
-----------
Total expenses........................................ 712,415
Less fees and expenses waived or absorbed:
Distribution fees....................................... (149,466)
Other fund expenses..................................... (139,462)
-----------
Total fees and expenses waived or absorbed............ (288,928)
-----------
Total net expenses.................................... 423,487
-----------
Investment income--net................................ 2,298,424
-----------
Net increase in net assets resulting from operations........ $ 2,298,424
-----------
-----------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
ADVANTUS MONEY MARKET FUND
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED SEPTEMBER 30, 1997 AND 1996
<TABLE>
<CAPTION>
1997 1996
------------- -------------
<S> <C> <C>
Operations:
Investment income--net.......................... $ 2,298,424 $ 1,837,286
------------- -------------
Increase in net assets resulting from
operations................................. 2,298,424 1,837,286
------------- -------------
Distributions to shareholders from net investment
income........................................... (2,298,424) (1,837,286)
------------- -------------
Capital share transactions, at a constant net
asset value of $1.00:
Proceeds from sales............................. 95,544,918 78,484,028
Proceeds from issuance of shares as a result of
reinvested dividends........................... 2,270,394 1,821,788
Payments for redemption of shares............... (87,277,056) (72,459,754)
------------- -------------
Increase in net assets from capital share
transactions............................... 10,538,256 7,846,062
------------- -------------
Total increase in net assets................ 10,538,256 7,846,062
Net assets at beginning of year................... 43,952,661 36,106,599
------------- -------------
Net assets at end of year......................... $ 54,490,917 $ 43,952,661
------------- -------------
------------- -------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
ADVANTUS MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
(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. The Fund's investment objective is to seek a high
level of current income consistent with preservation of capital and maintenance
of liquidity.
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 year ended September 30, 1997, purchases of securities and proceeds
from sales aggregated $281,866,642 and $271,301,675, respectively.
9
<PAGE>
ADVANTUS MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(3) EXPENSES AND RELATED PARTY TRANSACTIONS
The Fund has an investment advisory agreement with Advantus Capital
Management, Inc. (Advantus Capital or the Adviser), a wholly-owned subsidiary of
MIMLIC Asset Management Company (MIMLIC Management). 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. 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.
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 Ascend Financial Services, Inc.
(Ascend), formerly known as MIMLIC Sales Corporation, 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. Ascend 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 fees, 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 year ended September
30, 1997, Advantus Capital voluntarily agreed to absorb $139,462 in expenses
which were otherwise payable by the Fund.
As of September 30, 1997, Minnesota Mutual and subsidiaries and the
directors and officers of the Fund as a whole owned 19,181,553 shares or 35.2
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 $2,394.
10
<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
NOVEMBER 1,
YEAR ENDED SEPTEMBER 30, 1993 TO YEAR ENDED
------------------------------- SEPTEMBER 30, OCTOBER 31,
1997 1996 1995(A) 1994(B) 1993
--------- --------- --------- --------------- ------------
<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 .046 .049 .027 .025
--------- --------- --------- ------- ------------
Total from investment operations................. .046 .046 .049 .027 .025
--------- --------- --------- ------- ------------
Less distributions:
Dividends from net investment income............... (.046) (.046) (.049) (.027) (.025)
--------- --------- --------- ------- ------------
Total distributions.............................. (.046) (.046) (.049) (.027) (.025)
--------- --------- --------- ------- ------------
Net asset value, end of period....................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
--------- --------- --------- ------- ------------
--------- --------- --------- ------- ------------
Total return (c)..................................... 4.7% 4.7% 5.0% 2.7%(d) 2.5%
Net assets, end of period (in thousands)............. $ 54,491 $ 43,953 $ 36,107 $ 25,719 $ 23,106
Ratio of expenses to average daily net assets (e).... .85% .85% .85% .85%(f) .85%
Ratio of net investment income to average daily net
assets (e).......................................... 4.61% 4.64% 4.93% 2.95%(f) 2.45%
</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 $288,928,
$261,733, $240,231, $222,862 and $210,392 in expenses for the years ended
September 30, 1997, 1996 and 1995, the period ended September 30, 1994 and
the year ended October 31, 1993, respectively. If the Fund had been charged
for these expenses, the ratio of expenses to average daily net assets would
have been 1.43%, 1.51%, 1.66%, 1.86% and 1.74%, respectively, and the ratio
of net investment income to average daily net assets would have been 4.03%,
3.98%, 4.12%, 1.94% and 1.56%, respectively.
(f) Adjusted to an annual basis.
11
<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, 1997 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 three years
then ended, the period from November 1, 1993 to September 30, 1994 and for the
year 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, 1997 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 7, 1997
12
<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, 1997. Dividends for the 1997 calendar year will
be reported to you on Form 1099-Div in late January 1998. 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>
PAYABLE DATE PER SHARE
- ------------------------------------------------------------------------------------------------------ -------------
<S> <C>
October 31, 1996...................................................................................... $ .0038
November 30, 1996..................................................................................... .0037
December 31, 1996..................................................................................... .0038
January 31, 1997...................................................................................... .0038
February 28, 1997..................................................................................... .0034
March 31, 1997........................................................................................ .0038
April 30, 1997........................................................................................ .0039
May 31, 1997.......................................................................................... .0039
June 30, 1997......................................................................................... .0039
July 31, 1997......................................................................................... .0041
August 31, 1997....................................................................................... .0040
September 30, 1997.................................................................................... .0038
------
$ .0459
------
------
</TABLE>
13
<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
14
<PAGE>
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. 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 Ascend Financial Services, Inc. (formerly known as
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 twelve mutual funds containing
$2.5 billion in assets in addition to $1.8 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
15
<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]
ASCEND FINANCIAL SERVICES, INC.,
SECURITIES DEALER, MEMBER NASD/SIPC
400 ROBERT STREET NORTH
ST. PAUL, MN 55101-2098
1-888-AFS-1838
(1-888-237-1838)
<PAGE>
ASCEND FINANCIAL SERVICES, INC. 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 Rev. 11-1997
