<PAGE>
[LOGO]
Semi-Annual Report to Shareholders
Advantus Money Market Fund
March 31, 1998
<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
SHAREHOLDER SERVICES 12
<PAGE>
LETTER FROM THE PRESIDENT [PHOTO]
Dear Shareholders:
Investors experienced a positive financial environment with moderate economic
growth and low inflation throughout the six-month reporting period. Fears of
inflation in our economy have dissipated as negative economic events in Asia
unfolded and took on global implications earlier in the reporting period.
The "Asian Flu" severely affected several Far Eastern currencies and stock
markets, leaving a trail of bankruptcies, uncertainties, and fears in its wake.
In fact, a "flight to quality" poured assets into U.S. markets, particularly the
bond market, which is a popular destination for investors during periodic
flights to quality.
Broadly speaking, both equity and fixed income securities have demonstrated
notable results this reporting period. Indices, such as the S&P 500,* which
returned 16.3 percent at the end of the six-month period; and The Lehman
Brothers Government Corporate Bond Index,** which returned 4.8 percent for the
same period, reflected the GENERAL strength of the equity and fixed income
markets respectively.
As investors, we all enjoy "market watching." We have witnessed the financial
markets change, sometimes significantly, because of actual events or because of
mere perceptions in those markets. Keeping a long-range view of investing is
important because it smoothes out the highs and lows. We believe that investors
derive the greatest benefit by maintaining a long-range perspective on
investing.
The investing professionals at Advantus Capital Management continue to put their
money management expertise to work on your behalf. We appreciate your continued
participation in the Advantus Funds and urge you to maintain a long-term
investment perspective.
Sincerely,
[SIGNATURE]
Robert E. Hunstad, President
Advantus Funds
*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 Brothers Government Corporate Bond Index is an unmanaged benchmark
composite of the Lehman Brothers Government Bond Index which includes all
publicly issued debt of the U.S. Government and Agencies and The Lehman Brothers
Corporate Bond Index which includes all publicly issued, fixed rate,
nonconvertible investment grade dollar-denominated, SEC registered corporate
debt.
<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
For the six month period ended March 31, 1998, the seven-day compound annual
yield of the Advantus Money Market Fund was 4.7 percent. The Fund earned a total
return of 2.4 percent for the past six months.
PORTFOLIO ANALYSIS
Short-term interest rates have continued to be remarkably stable. The Federal
Reserve Board kept monetary policy on hold, thus providing stability for the
money markets. Short-term rates actually declined slightly during the past six
months as the marketplace anticipated that the Fed's next move would be to lower
interest rates.
During the period, the Fund's average days to maturity was extended from 45 to
51 days. By extending the maturity, we brought it closer to the market average
of 57 days for all money market funds. When short-term interest rates are
falling, it is advantageous to have longer maturities because higher yields can
be locked in for longer periods.
Within the Fund, our emphasis continues to be on commercial paper. It generates
attractive yields when compared to U.S. Treasuries and agencies and still offers
excellent liquidity and safety. Our commercial paper purchases are limited to
issues rated P1 by Moody's Investors Service and A1 or A1+ by Standard and
Poor's Ratings Services. These are the highest commercial paper ratings
assigned.
OUTLOOK
Going forward, we will continue to emphasize the commercial paper market because
of its positive characteristics, including safety, liquidity and yield
advantage. We plan to keep the average days to maturity near or slightly longer
than the market average.
The Federal Reserve has been on hold since February 1997; given the low
inflation environment and the financial crisis in Southeast Asia, the Fed is
likely to continue its wait-and-see approach. The Fed's next move will be
dictated by the low inflation, strong growth tug-of-war that is playing itself
out in the economy. We believe that growth will slow prior to a rise in
inflation, thus paving the way for the Fed to eventually ease interest rates.
This would likely happen in late 1998 or early 1999. In the meantime, 5 percent
short-term interest rates are very attractive in a 1.5 percent inflation
environment.
2
<PAGE>
ADVANTUS MONEY
MARKET FUND
MARCH 31, 1998
AVERAGE DAYS TO MATURITY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
NUMBER OF DAYS
<S> <C>
10/7/97 43
10/14/97 44
10/21/97 45
10/28/97 45
11/4/97 43
11/11/97 52
11/18/97 51
11/25/97 49
12/2/97 44
12/9/97 43
12/16/97 47
12/23/97 45
12/30/97 43
1/6/98 37
1/13/98 43
1/20/98 46
1/27/98 48
2/3/98 47
2/10/98 56
2/17/98 55
2/24/98 57
3/3/98 57
3/10/98 52
3/17/98 52
3/24/98 52
3/31/98 51
</TABLE>
SEVEN-DAY COMPOUND YIELD*
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PERCENTAGE
<S> <C>
10/7/97 5.47%
10/14/97 4.86%
10/21/97 4.80%
10/28/97 4.76%
11/4/97 4.77%
11/11/97 4.80%
11/18/97 4.82%
11/25/97 4.84%
12/2/97 4.84%
12/9/97 4.86%
12/16/97 4.91%
12/23/97 4.85%
12/30/97 5.01%
1/6/98 4.98%
1/13/98 4.41%
1/20/98 4.78%
1/27/98 4.90%
2/3/98 4.92%
2/10/98 4.75%
2/17/98 4.82%
2/24/98 4.73%
3/3/98 4.70%
3/10/98 4.77%
3/17/98 4.73%
3/24/98 4.76%
3/31/98 4.74%
</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 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, 1998
(UNAUDITED)
(Percentages of each investment category relate to total net assets.)
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE(A)
- ---------- -----------
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (98.4%)
BASIC MATERIALS (8.7%)
Chemicals (8.7%)
$2,415,000 Monsanto (c)..................................... 5.64% 06/09/98 $ 2,389,543
2,703,000 PPG Industries................................... 5.62% 04/28/98 2,691,800
-----------
5,081,343
-----------
COMMUNICATION SERVICES (10.8%)
Telephone (10.8%)
1,935,000 Ameritech........................................ 5.54% 05/12/98 1,923,030
2,620,000 Bellsouth Telecommunications..................... 5.55% 04/09/98 2,616,816
115,000 Bellsouth Telecommunications..................... 5.60% 05/13/98 114,263
1,675,000 SBC Communications (c)........................... 5.56% 05/21/98 1,662,338
-----------
6,316,447
-----------
CONSUMER CYCLICAL (25.8%)
Building Materials (4.2%)
1,095,000 E.I. DuPont De Nemours & Company................. 5.60% 05/27/98 1,085,679
1,410,000 E.I. DuPont De Nemours & Company................. 5.59% 06/17/98 1,393,559
-----------
2,479,238
-----------
Hardware and Tools (3.4%)
2,000,000 The Stanley Works................................ 5.59% 05/14/98 1,986,906
-----------
Photography/Imagery (4.6%)
2,710,000 Xerox Corporation................................ 5.58% 04/28/98 2,698,853
-----------
Publishing (8.9%)
2,520,000 McGraw-Hill Company.............................. 5.64% 07/13/98 2,480,538
2,725,000 Tribune Company.................................. 5.59% 05/08/98 2,709,639
-----------
5,190,177
-----------
Service (4.7%)
2,775,000 PHH Corporation.................................. 5.64% 06/30/98 2,736,913
-----------
CONSUMER STAPLES (18.4%)
Beverage (7.1%)
2,640,000 Anheuser-Busch Company, Inc...................... 5.56% 04/23/98 2,631,181
1,535,000 Coca-Cola Company................................ 5.59% 06/02/98 1,520,571
-----------
4,151,752
-----------
Entertainment (3.4%)
200,000 Walt Disney...................................... 5.49% 06/01/98 198,181
1,528,000 Walt Disney...................................... 5.51% 06/05/98 1,513,141
300,000 Walt Disney...................................... 5.56% 06/17/98 296,522
-----------
2,007,844
-----------
</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>
Food (7.9%)
$ 820,000 Archer Daniels................................... 5.57% 04/27/98 $ 816,758
670,000 Archer Daniels................................... 5.59% 05/07/98 666,327
365,000 Archer Daniels................................... 5.64% 05/27/98 361,870
360,000 Archer Daniels................................... 5.65% 06/02/98 356,577
320,000 Archer Daniels................................... 5.64% 06/08/98 316,673
2,105,000 HJ Heinz Company................................. 5.59% 05/07/98 2,093,454
-----------
4,611,659
-----------
ENERGY (3.5%)
Oil (3.5%)
2,075,000 Atlantic Richfield Company....................... 5.50% 04/17/98 2,070,008
-----------
HEALTH CARE (8.5%)
Drugs (3.9%)
2,280,000 Schering Plough Corporation...................... 5.55% 05/19/98 2,263,486
-----------
Health Care-Diversified (4.6%)
2,700,000 American Home Products (c)....................... 5.63% 05/15/98 2,681,800
-----------
UTILITIES (22.7%)
Electric Companies (19.3%)
2,665,000 Carolina Power & Light........................... 5.57% 05/05/98 2,651,256
145,000 Emerson Electric Company......................... 5.62% 04/16/98 144,666
2,525,000 Emerson Electric Company......................... 5.59% 05/06/98 2,511,533
510,000 Florida Power.................................... 5.64% 04/15/98 508,900
2,700,000 MidAmerican Energy............................... 5.63% 04/24/98 2,690,463
2,800,000 Wisconsin Electric Power Company................. 5.13% 09/15/98 2,792,153
-----------
11,298,971
-----------
Natural Gas (3.4%)
2,000,000 Nicor Incorporated............................... 5.59% 05/01/98 1,990,859
-----------
Total commercial paper (cost: $57,566,256)......................... 57,566,256
-----------
</TABLE>
<TABLE>
<C> <S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (1.3%)
120,000 US Treasury Bill................................. 5.18% 04/23/98 119,627
660,000 US Treasury Bill................................. 5.22% 05/21/98 655,295
------------
Total U.S. government obligations (cost: $774,922).................... 774,922
------------
Total investments in securities (cost: $58,341,178) (b)............... $ 58,341,178
------------
------------
</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, 1998.
(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
MARCH 31, 1998
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investments in securities, at market
value--see accompanying schedule for
detailed listing
(identified cost: $58,341,178)........ $58,341,178
Cash in bank on demand deposit......... 40,993
Receivable for Fund shares sold........ 575,384
Accrued interest receivable............ 6,629
-----------
Total assets....................... 58,964,184
-----------
LIABILITIES
Payable for investment securities
purchased............................. 356,537
Payable for Fund shares redeemed....... 88,850
Payable to Adviser..................... 8,939
-----------
Total liabilities.................. 454,326
-----------
Net assets applicable to outstanding
capital stock......................... $58,509,858
-----------
-----------
Represented by:
Capital stock--authorized 10 billion
shares of $.01 par value;
outstanding 58,509,858 shares....... $ 585,099
Additional paid-in capital........... 57,924,759
-----------
Total--representing net assets
applicable to outstanding capital
stock............................. $58,509,858
-----------
-----------
Net asset value per share.............. $ 1.00
-----------
-----------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
ADVANTUS MONEY MARKET FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTH PERIOD ENDED MARCH 31, 1998
(UNAUDITED)
<TABLE>
<S> <C>
Investment income:
Interest............................. $1,545,165
----------
Expenses (note 3):
Investment advisory fee.............. 139,469
Distribution fees.................... 83,682
Administrative services fee.......... 18,200
Transfer agent fees.................. 73,454
Custodian fees....................... 9,569
Auditing and accounting services..... 7,950
Legal fees........................... 2,163
Registration fees.................... 21,854
Printing and shareholder reports..... 21,987
Insurance............................ 2,649
Other................................ 6,556
----------
Total expenses................... 387,533
Less fees and expenses waived or
absorbed:
Distribution fees.................. (66,754)
Other fund expenses................ (83,682)
----------
Total fees and expenses waived or
absorbed......................... (150,436)
----------
Total net expenses............... 237,097
----------
Investment income--net........... 1,308,068
----------
Net increase in net assets resulting
from operations....................... $1,308,068
----------
----------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
ADVANTUS MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTH PERIOD ENDED MARCH 31, 1998 AND YEAR ENDED SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
Operations:
Investment income--net............... $ 1,308,068 $ 2,298,424
------------ ------------
Increase in net assets resulting
from operations................. 1,308,068 2,298,424
------------ ------------
Distributions to shareholders from
net investment income............... (1,308,068) (2,298,424)
Capital share transactions at a
constant net asset value of $1.00:
Proceeds from sales.................. 44,487,221 95,544,918
Proceeds from issuance of shares as a
result of reinvested dividends........ 1,292,391 2,270,394
Payments for redemption of shares.... (41,760,671) (87,277,056)
------------ ------------
Increase in net assets from
capital share transactions...... 4,018,941 10,538,256
------------ ------------
Total increase in net assets..... 4,018,941 10,538,256
Net assets at beginning of period...... 54,490,917 43,952,661
------------ ------------
Net assets at end of period............ $ 58,509,858 $ 54,490,917
------------ ------------
------------ ------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
ADVANTUS MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1998
(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. 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 period ended March 31, 1998, purchases of securities and proceeds
from sales aggregated $150,614,282 and $146,042,459, 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, auditing and accounting services, organizational costs and other
miscellaneous expenses.
The Fund pays an administrative services fee, equal to $3,100, to Minnesota
Mutual for accounting, auditing, legal and other administrative services which
Minnesota Mutual provides. Prior to February 1, 1998, the administrative
services fee was $3,000.
Advantus Capital directly incurs and pays the above operating expenses and
the Fund in turn reimburses Advantus Capital. During the period ended March 31,
1998, Advantus Capital voluntarily agreed to absorb $83,682 in expenses which
were otherwise payable by the Fund.
As of March 31, 1998, Minnesota Mutual and subsidiaries and the directors
and officers of the Fund as a whole owned 20,781,014 shares or 35.5 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 $2,163.
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 PERIOD FROM
OCTOBER 1, NOVEMBER 1,
1997 TO YEAR ENDED SEPTEMBER 30, 1993 TO YEAR ENDED
MARCH 31, ------------------------------- SEPTEMBER 30, OCTOBER 31,
1998 1997 1996 1995(A) 1994(B) 1993
------------ --------- --------- --------- --------------- ------------
<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................... .023 .046 .046 .049 .027 .025
------------ --------- --------- --------- ------- ------------
Total from investment operations...... .023 .046 .046 .049 .027 .025
------------ --------- --------- --------- ------- ------------
Less distributions:
Dividends from net investment income.... (.023) (.046) (.046) (.049) (.027) (.025)
------------ --------- --------- --------- ------- ------------
Total distributions................... (.023) (.046) (.046) (.049) (.027) (.025)
------------ --------- --------- --------- ------- ------------
Net asset value, end of period............ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------ --------- --------- --------- ------- ------------
------------ --------- --------- --------- ------- ------------
Total return (c).......................... 2.4% 4.7% 4.7% 5.0% 2.7% 2.5%
Net assets, end of period (in thousands).. $ 58,510 $ 54,491 $ 43,953 $ 36,107 $ 25,719 $ 23,106
Ratio of expenses to average daily net
assets (d)............................... .85%(e) .85% .85% .85% .85%(e) .85%
Ratio of net investment income to average
daily net assets (d)..................... 4.69%(e) 4.61% 4.64% 4.93% 2.95%(e) 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. For periods
less than one year, total return presented has not been annualized.
(d) The Fund's Adviser and Distributor voluntarily waived or absorbed $150,436,
$288,928, $261,733, $240,231, $222,862 and $210,392 in expenses for the
period ended March 31, 1998, 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 1.39%, 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 4.15%, 4.03%, 3.98%,
4.12%, 1.94% and 1.56%, respectively.
(e) Adjusted to an annual basis.
11
<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 each calendar year without incurring a
transaction charge. Thereafter, there will be a $7.50 transaction charge for
each additional exchange within the calendar year. 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 EXCHANGE: You can move money from one Advantus account to any other
Advantus account you own (with identical registrations within the same class)
just by calling our toll free number. The Telephone Exchange and Telephone
Redemption privilege will automatically be established unless otherwise
indicated on the Account Application. Telephone Exchange and Redemption may be
changed (added/deleted) at any time by submitting a request in writing or by
completing a Service Request Form.
SYSTEMATIC EXCHANGE: You can move a set amount of money monthly from one
Advantus Fund to another Advantus Fund (with identical registrations within the
same class) 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 from your Advantus Money Market account.
REDUCED SALES CHARGES: Letter of Intent, combined purchases with spouse,
children or single trust estates, and the Right of Accumulation make it possible
for you to reduce the sales charge on Advantus's non-money market funds.
SPECIAL PURCHASE PLANS: 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.) 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
Traditional or Roth Individual Retirement Account or other qualified plan
including: SEP IRA's, SIMPLE IRA's, 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 or wire
transferred to your bank of record for the account.
12
<PAGE>
Wire transfers are for amounts over $500. The prevailing wire charge will be
added to the withdrawal amount. The Telephone Exchange and Telephone Redemption
privilege will automatically be established unless otherwise indicated on the
Account Application. Telephone Exchange and Redemption may be changed
(added/deleted) at any time by submitting a request in writing or by completing
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 will receive written confirmation of every investment you
initiate (monthly statements for your Money Market account) and quarterly
statements to help you track all of your Advantus Fund investments and annual
tax statements. Semi-annual and annual reports will provide you with portfolio
information, fund performance data and the current investment outlook.
TOLL-FREE SERVICE LINE: For your convenience in obtaining personal information
and assistance directly from Advantus Shareholder Services, call
(1-800-665-6005). Advantus Account Representatives are available Monday through
Friday from 8 a.m. to 4:45 p.m. Central Time. Our voice response system is
available from 7 a.m. to 3 a.m. Central Time Monday through Friday, and 8 a.m.
to 5 p.m. on Saturday. This system allows you to access current net asset values
and account balances.
HOW TO INVEST
You can invest in one or more of the ten Advantus Funds through a 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. To find a Registered Representative near you, call the toll-free
service line (1-800-665-6005).
MINIMUM INVESTMENTS: Your initial investment in any of the Advantus Funds can
be as small as $25 when you use the Automatic Investment Plan. Minimum lump-sum
initial investment is $250. Minimum subsequent investment is $25.
THE FUND'S MANAGER
Advantus Capital Management, Inc., investment adviser to the Fund, selects
and reviews the Fund's investments and provides executive and other personnel
for the Fund's management.
Advantus Capital Management, Inc. manages twelve mutual funds containing
$2.7 billion in assets in addition to $2.1 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
13
<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
ADDRESS SERVICE REQUESTED
F.48642 Rev. 5-1998
