<PAGE>
MONEY MARKET
ADVANTUS MONEY MARKET FUND, INC.
ANNUAL REPORT TO SHAREHOLDERS DATED SEPTEMBER 30, 2000 [LOGO]
ADVANTUS-TM-
FAMILY OF FUNDS
[MONEY MARKET GRAPHIC]
<PAGE>
ADVANTUS MONEY MARKET FUND
TABLE OF CONTENTS
<TABLE>
<S> <C>
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 VOTING RESULTS 14
SHAREHOLDER SERVICES 15
</TABLE>
<PAGE>
LETTER FROM THE PRESIDENT [PHOTO]
Dear Shareholder:
All signs point to a soft landing in progress while the U.S. economy continues
to slow. The pressure on the Federal Reserve to further increase short-term
rates has diminished considerably. The Fed's earlier series of tightenings
appears to have successfully curbed the country's run-away growth. Inflation
remains in check; all in all, we continue to have a healthy backdrop for our
country's capital markets.
In the stock market, companies such as Intel and new economy leaders have seen
some dramatic corrections this quarter. This was a sideways correction for many,
downward for companies that disappointed investors. Value, real estate, and
small stocks' relative performance has improved this quarter. The market has
broadened, demonstrating that investors have acquired an increased appetite for
stocks other than large cap growth. We anticipate that the stock market will
remain volatile throughout the year and into next year. Equity investors should
adjust their expectations and not expect double-digit returns as the norm. We
expect positive returns for equities for the next 12 to 18 months, with above
average earnings growth.
Within the fixed income universe, corporate bonds have been the weakest
performing fixed income sector in 2000. An inverted yield curve (i.e., short-
term bonds have higher yields than long-term bonds), several Fed tightening
moves, increased event risk and equity market volatility have all negatively
impacted corporate bond performance this year. Mortgage-backed securities were
the top performer for the year followed by the government sector. We believe
that upcoming quarters will be a favorable environment for bonds.
We are continually watchful of economic and political events and circumstances
that would likely affect our new President. Significant political unrest,
military buildups, and violence in other countries may test the
President-elect's mettle. A strong Administration increases the odds that our
peace dividend will continue.
We advise investors to consider adding fixed income, value stocks and an
international component to their portfolio. As we've said before, we advise you
to stay well diversified and avoid big bets when the market environment is
uncertain.
Sincerely,
/s/ William N. Westhoff
William N. Westhoff
President, Advantus Funds
<PAGE>
ADVANTUS MONEY MARKET FUND
PERFORMANCE UPDATE
[PHOTO]
STEVEN S. NELSON, 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
maintenance of 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 year ended September 30, 2000, the Advantus Money Market Fund earned a
total return of 5.33 percent.* This compares to the three-month U.S. Treasury
Bill, which earned 5.83 percent for the same period. The seven-day compound
yield of the Fund was 5.56 percent* at September 30, 2000.
PERFORMANCE ANALYSIS
The Federal Reserve actively raised key short-term interest rates over the past
twelve months in an attempt to slow our economy and keep inflation at bay. After
four interest rate hikes totaling 125 basis points (1.25 percent) and with the
highest oil prices in a decade, the economy is beginning to slow, paving the way
for slightly lower interest rates. During the period, the shape of the yield
curve changed dramatically as short-term interest rose and long-term interest
rates fell. The resulting yield curve became inverted (a situation where
short-term interest rates are higher than long-term interest rates) as the Fed
raised short-term interest rates and the U.S. Treasury Department was buying
back its longer-term debt. On September 30th, the two-year U.S. Treasury Note
yielded 5.97 percent and thirty-year Treasury yielded 5.88 percent, 9 basis
points less than the two-year.
While market volatility remained subdued this past quarter, financial markets
have experienced periods of extreme volatility over the past year. We would
caution that investors should continue to expect financial markets to experience
significant volatility from time to time. Because of this, high-quality U.S.
corporate commercial paper should always be considered as a sound alternative
for investors seeking a high degree of safety and liquidity for a portion of
their portfolios. In addition, for several months we have operated in an
environment where high-quality commercial paper has offered investors very
attractive yields relative to other fixed income alternatives. For example, over
the past several months, yields offered by many large, high-quality issuers on
90-day commercial paper exceeded six and one-half percent.
The Advantus Money Market Fund has approximately 99 percent of its assets
invested in high quality corporate commercial paper (i.e., commercial paper that
is rated A-1 by Standard and Poor's or P-1 by Moody's). The Fund's holdings are
well diversified over a variety of stable industries. Our goal throughout this
reporting period has been to maintain the average days to maturity of the Fund
in the range of 40 to 50 days.
OUTLOOK
In total, the Fed raised the Federal Funds rate six times and a total of 1.75
percent (i.e., to 6.50 percent from 4.75 percent) between June 1999 and May
2000. Although the U.S. economy remains resilient, it is no doubt slowing as
*Historical performance is not an indication of future performance. Investment
returns will fluctuate.
2
<PAGE>
the Fed's aggressive moves have taken hold. With major domestic equity indexes
all down this year, in some cases substantially (e.g., the NASDAQ), a
significant amount of wealth and confidence has been removed from our financial
system. In addition, high oil and natural gas prices will effectively tax the
consumer and have an increasingly negative impact on spending over the months
ahead. As a result of these factors, we believe the Federal Reserve is finished
raising short-term rates for this interest rate cycle. As this view becomes more
widely held by investors, as we expect it to, short- and intermediate-term
interest rates should fall modestly. One final thought for investors: Given the
many downside risks to financial markets that currently exist, there could be a
flight to quality move in the weeks or months ahead if the Fed's attempt to
engineer a soft landing fails and more draconian scenarios prevail.
AVERAGE DAYS TO MATURITY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
NUMBER OF DAYS
<S> <C>
10/5/99 58
10/12/99 57
10/19/99 62
10/26/99 62
11/2/99 64
11/9/99 64
11/16/99 61
11/23/99 56
12/7/99 56
12/14/99 57
12/21/99 55
12/28/99 48
1/4/00 57
1/11/00 52
1/18/00 57
1/25/00 68
2/1/00 69
2/8/00 60
2/15/00 54
2/22/00 48
3/7/00 53
3/14/00 49
3/21/00 46
3/28/00 47
4/4/00 47
4/11/00 46
4/18/00 49
4/25/00 50
5/2/00 46
5/9/00 43
5/16/00 39
5/23/00 41
6/7/00 41
6/13/00 41
6/20/00 38
6/27/00 33
7/4/00 28
7/11/00 40
7/18/00 44
7/25/00 41
8/1/00 47
8/8/00 42
8/15/00 46
8/22/00 42
9/5/00 40
9/12/00 42
9/19/00 47
9/30/00 50
</TABLE>
SEVEN-DAY COMPOUND YIELD*
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
YIELD
<S> <C>
10/5/99 4.49%
10/12/99 4.56%
10/19/99 4.35%
10/26/99 4.41%
11/2/99 5.00%
11/9/99 4.77%
11/16/99 4.92%
11/23/99 4.86%
12/7/99 4.93%
12/14/99 5.03%
12/21/99 5.04%
12/28/99 5.05%
1/4/00 5.12%
1/11/00 5.12%
1/18/00 4.98%
1/25/00 5.12%
2/1/00 5.11%
2/8/00 5.11%
2/15/00 5.06%
2/22/00 4.76%
3/7/00 5.10%
3/14/00 5.22%
3/21/00 5.23%
3/28/00 5.18%
4/4/00 5.20%
4/11/00 5.45%
4/18/00 5.64%
4/25/00 5.09%
5/2/00 5.45%
5/9/00 5.26%
5/16/00 5.34%
5/23/00 5.57%
6/7/00 6.00%
6/13/00 5.88%
6/20/00 5.73%
6/27/00 5.83%
7/4/00 6.05%
7/11/00 5.50%
7/18/00 6.09%
7/25/00 5.63%
8/1/00 5.86%
8/8/00 5.96%
8/15/00 6.35%
8/22/00 5.68%
9/5/00 5.97%
9/12/00 5.54%
9/19/00 5.42%
9/30/00 5.56%
</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 will fluctuate.
3
<PAGE>
ADVANTUS MONEY MARKET FUND
INVESTMENTS IN SECURITIES
SEPTEMBER 30, 2000
(Percentages of each investment category relate to total net assets.)
<TABLE>
<CAPTION>
PRINCIPAL COUPON MATURITY VALUE(A)
--------- ------ -------- ---------------
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (98.8%)
BASIC MATERIALS (7.3%)
Agriculture Products (4.9%)
$2,150,000 Archer-Daniels-Midland Company................... 6.767% 03/13/01 $ 2,086,933
-----------
Chemicals (2.4%)
1,000,000 PPG Industries, Inc.............................. 6.618% 10/17/00 997,107
-----------
COMMUNICATION SERVICES (7.5%)
Telephone (7.5%)
1,180,000 AT&T Corporation................................. 6.783% 01/10/01 1,158,260
1,025,000 AT&T Corporation................................. 6.788% 01/17/01 1,004,819
1,000,000 Bellsouth Telecommunications, Inc................ 6.622% 10/12/00 998,008
-----------
3,161,087
-----------
CONSUMER CYCLICAL (17.5%)
Hardware and Tools (2.8%)
1,200,000 The Stanley Works................................ 6.663% 12/21/00 1,182,515
-----------
Publishing (14.7%)
2,000,000 Gannett Co, Inc. (c)............................. 6.642% 11/24/00 1,980,539
1,110,000 McGraw-Hill Companies, Inc....................... 6.703% 10/12/00 1,107,762
1,145,000 McGraw-Hill Companies, Inc....................... 6.662% 12/08/00 1,130,963
1,020,000 Tribune Company (c).............................. 6.720% 10/10/00 1,018,313
975,000 Tribune Company (c).............................. 6.728% 10/16/00 972,316
-----------
6,209,888
-----------
CONSUMER STAPLES (18.3%)
Beverage (4.7%)
2,000,000 The Coca-Cola Company............................ 6.694% 10/30/00 1,989,420
-----------
Entertainment (3.2%)
1,355,000 The Walt Disney Company.......................... 6.251% 10/13/00 1,352,221
-----------
Food (10.4%)
2,186,000 Bestfoods (c).................................... 6.662% 10/10/00 2,182,415
1,000,000 H.J. Heinz Company............................... 6.675% 10/02/00 999,817
1,200,000 H.J. Heinz Company............................... 6.636% 10/24/00 1,195,003
-----------
4,377,235
-----------
FINANCIAL (24.0%)
Auto Finance (2.5%)
1,075,000 General Motors Acceptance Corporation............ 6.903% 01/23/01 1,052,313
-----------
Commercial Finance (9.7%)
1,000,000 General Electric Capital Corporation............. 6.700% 10/04/00 999,450
1,155,000 General Electric Capital Corporation............. 6.777% 02/20/01 1,125,331
2,000,000 Verizon Network Funding.......................... 6.673% 11/28/00 1,979,016
-----------
4,103,797
-----------
</TABLE>
See accompanying notes to investments in securities.
4
<PAGE>
ADVANTUS MONEY MARKET FUND
INVESTMENTS IN SECURITIES - CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL COUPON MATURITY VALUE(A)
---------------------------------------------------------------------- -------- ---------------
FINANCIAL--CONTINUED
<C> <S> <C> <C> <C>
Consumer Finance (11.8%)
$1,960,000 American General Finance Corporation............. 6.714% 12/11/00 $ 1,934,733
1,000,000 Associates Corporation........................... 6.769% 01/19/01 980,009
1,085,000 Ciesco Limited Partnership....................... 6.731% 10/05/00 1,084,200
1,000,000 Ciesco Limited Partnership....................... 6.636% 10/06/00 999,092
-----------
4,998,034
-----------
TECHNOLOGY (4.7%)
Communications Equipment (4.7%)
2,000,000 Motorola, Inc.................................... 6.736% 11/07/00 1,986,436
-----------
UTILITIES (19.5%)
Electric Companies (14.8%)
1,522,000 Alabama Power Company............................ 6.627% 10/24/00 1,515,670
1,000,000 Baltimore Gas & Electric......................... 6.611% 10/12/00 998,012
1,000,000 Carolina Power & Light Company................... 6.650% 10/16/00 997,275
1,000,000 Florida Power Corporation........................ 6.645% 10/25/00 995,650
1,725,000 Potomac Electric Power Company................... 6.621% 10/23/00 1,718,143
-----------
6,224,750
-----------
Natural Gas (4.7%)
2,000,000 Nicor, Inc....................................... 6.666% 12/27/00 1,968,717
-----------
Total commercial paper (cost: $41,690,453)......................... $41,690,453
-----------
MONEY MARKET FUND (1.1%)
137,695 Federated Money Market Obligation Trust - Prime
Obligation Fund................................. 6.460% 137,695
303,338 Provident Institutional Fund - TempFund
Portfolio....................................... 6.526% 303,338
-----------
Total short-term securities (cost: $441,033)....................... 441,033
-----------
Total investments in securities (cost: $42,131,486) (b)............ $42,131,486
===========
</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, 2000.
(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, 2000
<TABLE>
<S> <C>
ASSETS
Investments in securities, at amortized cost - see accompanying
schedule for detailed listing.................................. $42,131,486
Cash in bank on demand deposit................................... 22,087
Receivable for Fund shares sold.................................. 56,207
Accrued interest receivable...................................... 9,058
-----------
Total assets................................................. 42,218,838
-----------
LIABILITIES
Payable for Fund shares redeemed................................. 20,049
Dividends payable to shareholders................................ 6,457
Payable to Adviser............................................... 3,916
Other payables................................................... 565
-----------
Total liabilities............................................ 30,987
-----------
Net assets applicable to outstanding capital stock............... $42,187,851
===========
Represented by:
Capital stock - authorized 10 billion shares of $.01 par value;
outstanding 42,187,851 shares................................ $ 421,879
Additional paid-in capital..................................... 41,765,972
-----------
Total - representing net assets applicable to outstanding
capital stock............................................... $42,187,851
===========
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 YEAR ENDED SEPTEMBER 30, 2000
<TABLE>
<S> <C>
Investment income:
Interest............................. $ 2,482,519
-------------
Expenses (note 4):
Investment advisory fee.............. 204,795
Rule 12b-1........................... 102,669
Administrative services fee.......... 61,200
Transfer agent and shareholder
service fees....................... 242,743
Custodian fees....................... 9,093
Auditing and accounting services..... 18,201
Legal fees........................... 10,827
Directors' fees...................... 741
Registration fees.................... 22,928
Printing and shareholder reports..... 48,498
Insurance............................ 3,539
Other................................ 4,469
-------------
Total expenses..................... 729,703
-------------
Less fees and expenses waived or
absorbed by Adviser and Distributor:
Distribution fees.................... (102,669)
Other absorbed fees.................. (278,882)
-------------
Total fees and expenses waived or
absorbed.......................... (381,551)
-------------
Total net expenses................. 348,152
-------------
Investment income - net............ 2,134,367
-------------
Net increase in net assets resulting
from operations...................... $ 2,134,367
=============
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
ADVANTUS MONEY MARKET FUND
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
2000 1999
-------------- --------------
<S> <C> <C>
Operations:
Investment income - net......................... $ 2,134,367 $ 2,176,959
-------------- --------------
Increase in net assets resulting from
operations.................................. 2,134,367 2,176,959
-------------- --------------
Distributions to shareholders from net investment
income.......................................... (2,134,367) (2,176,959)
-------------- --------------
Capital share transactions at a constant net asset
value of $1.00 (note 3):
Proceeds from sales............................. 115,136,100 92,025,759
Proceeds from issuance of shares as a result of
reinvested dividends.......................... 2,073,475 2,143,222
Payments for redemption of shares............... (116,224,480) (113,867,509)
-------------- --------------
Increase (decrease) in net assets from
capital share transactions................ 985,095 (19,698,528)
-------------- --------------
Total increase (decrease) in net assets..... 985,095 (19,698,528)
Net assets at beginning of year................. 41,202,756 60,901,284
-------------- --------------
Net assets at end of year....................... $ 42,187,851 $ 41,202,756
============== ==============
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
ADVANTUS MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
(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 accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts in
the financial statements. Actual results could differ from those estimates.
INVESTMENTS IN SECURITIES
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. However, there is no assuarance the Fund will
maintain the $1.00 NAV.
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, 2000, purchases of securities and proceeds
from sales, aggregated $298,729,191 and $297,836,600, respectively.
(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
Minnesota Life Insurance Company (Minnesota Life). Under the agreement, Advantus
Capital manages the Fund's assets and provides research, statistical and
advisory services
9
<PAGE>
ADVANTUS MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS - CONTINUED
(3) EXPENSES AND RELATED PARTY TRANSACTIONS - (CONTINUED)
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 has engaged PFPC
Global Fund Services to act as its transfer agent, dividend disbursing agent and
redemption agent and bears the expenses of such services.
The Fund has adopted a Plan of Distribution relating to the payment of
certain expenses pursuant to Rule 12b-1 under the Investment Company Act of 1940
(as amended). The Plan provides for a service fee up to .25 percent of average
daily net assets to be paid to Ascend Financial Services, Inc. (Ascend), the
underwriter of the Fund and wholly-owned subsidiary of Advantus Capital, to be
used to pay certain expenses incurred in the distribution, promotion and
servicing of the Fund's shares. Ascend is currently waiving all of the Fund's
Rule 12b-1 fees.
The Fund also bears certain other operating expenses including outside
directors' fees, custodian fees, registration fees, printing and shareholder
reports, legal, auditing and accounting services, organizational costs and other
miscellaneous expenses.
The Fund has entered into a shareholder and administrative services
agreement with Minnesota Life. Under this agreement, the Fund pays a shareholder
services fee, equal to $5 per shareholder account annually, to Minnesota Life
for shareholder services which Minnesota Life provides. The Fund also pays
Minnesota Life an administrative services fee equal to $5,100 per month for
accounting, legal and other administrative services which Minnesota Life
provides.
Advantus Capital directly incurs and pays the above operating expenses and
the Fund in turn reimburses Advantus Capital. Ascend has voluntarily agreed to
waive all Rule 12b-1 fees. Advantus Capital has voluntarily agreed to absorb
"other expenses", excluding advisory fees and Rule 12b-1 fees, in excess of .35%
of average net assets of the Fund. After such waiver and absorption, the Fund's
total operating expenses will equal .85% of average net assets. Ascend Financial
and Advantus Capital reserve the right to discontinue such waiver or absorption,
respectively, at any time at their sole discretion. During the year ended
September 30, 2000, Advantus Capital voluntarily agreed to absorb $278,882 in
expenses which were otherwise payable by the Fund, in addition to the waived
12b-1 fees described above.
As of September 30, 2000, Minnesota Life and subsidiaries and the directors
and officers of the Fund as a whole owned 10,981,558 shares or 26.0 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 $10,206.
10
<PAGE>
ADVANTUS MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS - CONTINUED
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------------------------------------
2000 1999 1998 1997 1996
----------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value beginning of year....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
Income from investment operations:
Net investment income................. .05 .04 .05 .05 .05
------- ------- ------- ------- -------
Total from investment operations.... .05 .04 .05 .05 .05
------- ------- ------- ------- -------
Less distributions:
Dividends from net investment
income.............................. (.05) (.04) (.05) (.05) (.05)
------- ------- ------- ------- -------
Total distributions................. (.05) (.04) (.05) (.05) (.05)
------- ------- ------- ------- -------
Net asset value, end of year............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total return (a)........................ 5.33% 4.24% 4.78% 4.69% 4.74%
Net assets, end of year (in
thousands)............................ $42,188 $41,203 $60,901 $54,491 $43,953
Ratio of expenses to average daily net
assets (b)............................ .85% .85% .85% .85% .85%
Ratio of net investment income to
average daily net assets (b).......... 5.21% 4.17% 4.68% 4.61% 4.64%
</TABLE>
------------
(a) Total return figures are based on a share outstanding throughout the period
and assume reinvestment of distributions at net asset value.
(b) The Fund's Adviser and Distributor voluntarily waived or absorbed $381,551,
$371,434, $323,639, $288,928 and $261,733 in expenses for the years ended
September 30, 2000, 1999, 1998, 1997 and 1996. If the Fund had been charged
for these expenses, the ratio of expenses to average daily net assets would
have been 1.78%, 1.56%, 1.41%, 1.43% and 1.51%, respectively, and the ratio
of net investment income to average daily net assets would have been 4.28%,
3.46%, 4.12%, 4.03%, and 3.98%, respectively.
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, 2000 and the related statement
of operations for the year then ended, the statements of changes in net assets
for each of the years in the two-year period then ended and the financial
highlights for each of the years in the five-year period then ended. 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 auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit 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. Our procedures included confirmation of
securities owned as of September 30, 2000, by correspondence with 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, 2000 and the results of its operations,
changes in its net assets and the financial highlights for the periods stated in
the first paragraph above, in conformity with accounting principles generally
accepted in the United States of America.
KPMG LLP
Minneapolis, Minnesota
November 10, 2000
12
<PAGE>
ADVANTUS MONEY MARKET FUND
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
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, 2000. Dividends for the 2000 calendar year will
be reported to you on Form 1099-Div in late January 2001. Shareholders should
consult a tax adviser on how to report these distributions for state and local
purposes.
<TABLE>
<CAPTION>
PER
PAYABLE DATE SHARE
------------ --------
<S> <C>
Income distributions - taxable as dividend income, none qualifying for
deductions by corporations.
October 31, 1999............................................ $.0038
November 30, 1999........................................... .0039
December 31, 1999........................................... .0042
January 31, 2000............................................ .0042
February 29, 2000........................................... .0039
March 31, 2000.............................................. .0043
April 30, 2000.............................................. .0043
May 31, 2000................................................ .0045
June 30, 2000............................................... .0046
July 31, 2000............................................... .0049
August 31, 2000............................................. .0049
September 30, 2000.......................................... .0047
------
$.0522
======
</TABLE>
13
<PAGE>
ADVANTUS MONEY MARKET FUND
SHAREHOLDER VOTING RESULTS
On April 17, 2000, a special meeting of shareholders of Advantus Money Market
Fund, Inc. was held. Shareholders of record on February 28, 2000, were entitled
to vote on the proposals described below.
(1) To elect a Board of Directors as follows:
<TABLE>
<CAPTION>
VOTES VOTES
DIRECTOR FOR WITHHELD
-------- ---------- ---------
<S> <C> <C>
Charles E. Arner....................................... 19,387,645 2,113,551
Ellen S. Berscheid..................................... 19,384,489 2,116,707
Ralph D. Ebbott........................................ 19,387,645 2,113,551
Frederick P. Feuerherm................................. 19,387,645 2,113,551
William N. Westhoff.................................... 19,374,140 2,127,056
</TABLE>
(2) To approve the elimination or modification of the following investment
policies for:
<TABLE>
<CAPTION>
VOTES VOTES VOTES
FOR AGAINST WITHHELD
---------- --------- ---------
<S> <C> <C> <C> <C>
A. Modify policy regarding borrowing and the issuance
of senior securities............................. 18,893,954 782,854 1,822,964
B. Modify policy regarding concentration in a
particular industry.............................. 18,829,160 873,139 1,797,473
C. Modify policy regarding investments in real estate
and commodities.................................. 18,851,347 850,304 1,798,121
D. Modify policy regarding lending................... 18,838,572 857,335 1,803,865
E. Eliminate policy restricting the pledging of
assets........................................... 18,802,822 879,389 1,817,561
F. Eliminate policy restricting margin purchases and
short sales...................................... 18,803,211 1,125,253 1,571,308
G. Eliminate policy prohibiting participation in a
joint trading account............................ 18,868,903 812,897 1,817,972
H. Eliminate policy prohibiting options
transactions..................................... 18,904,325 1,024,204 1,571,243
I. Eliminate diversification policy.................. 18,751,418 908,145 1,840,209
J. Eliminate policy regarding investments in issuers
that have been in operation for less than 3
years............................................ 18,837,543 1,088,528 1,573,701
K. Eliminate policy addressing potential conflicts of
interest......................................... 18,757,094 1,157,225 1,585,453
L. Eliminate policy prohibiting investing in
companies for control............................ 18,898,090 794,873 1,806,809
M. Eliminate policy restricting investments in other
investment companies............................. 19,132,723 787,271 1,579,778
</TABLE>
(3) To approve an amendment to the investment advisory agreement between the
Fund and Advantus Capital Management, Inc., as described in the proxy
statement
<TABLE>
<CAPTION>
VOTES VOTES VOTES
FOR AGAINST WITHHELD
---------- ------- ---------
<S> <C> <C> <C>
18,854,661 801,771 1,843,340
</TABLE>
(4) To ratify the selection of KPMG LLP as independent public accountants for
the Fund
<TABLE>
<CAPTION>
VOTES VOTES VOTES
FOR AGAINST WITHHELD
---------- ------- ---------
<S> <C> <C> <C>
19,214,287 707,218 1,579,692
</TABLE>
14
<PAGE>
SHAREHOLDER SERVICES
The Advantus Family of Funds offers a variety of services that enhance your
ability to manage your assets. Check each Fund's prospectus for the details of
the services and any limitations that may apply.
EXCHANGE PRIVILEGES: You can move all or part of your investment dollars from
one fund to any other Advantus Fund you own (for identical registrations within
the same share class) at any time as your needs change. Exchanges are at the
then current net asset value (exchanges from the Advantus Money Market Fund will
incur the applicable sales charge, if not previously subjected to the charge).
Shareholders may make twelve exchanges each calendar year without incurring a
transaction charge. Thereafter, there will be a $7.50 transaction charge for
each additional exchange within the calendar year.
INCOME DISTRIBUTION FLEXIBILITY: You can have your fund dividends and other
distributions automatically reinvested with no sales charge, direct them from
one Advantus Fund to any other you own within the Fund family or, if you desire,
we'll pay you in cash.
SYSTEMATIC WITHDRAWAL PLAN: You can set up a plan to receive a check at
specified intervals from your fund account - subject to minimum guidelines.
Depending upon the performance of the underlying investment options, the value
may be worth more or less than the original amount invested when withdrawn.
DIRECT DIVIDEND DEPOSITS: At your request we will deposit your dividends or
systematic withdrawals directly into your checking or savings account instead of
sending you a check.
TELEPHONE EXCHANGE: You may move money from one Advantus account to any other
Advantus account you own (with identical registrations within the same share
class) just by calling our toll-free number. The Telephone Exchange privilege
will automatically be established unless otherwise indicated on the Account
Application. Telephone Exchange may be changed (added/deleted) at any time by
submitting a request in writing.
SYSTEMATIC EXCHANGE: You may move a set amount of money monthly or quarterly
from one Advantus Fund to another Advantus Fund (with identical registrations
within the same share class) to diversify your investment portfolio and take
advantage of "dollar-cost averaging".
AUTOMATIC PAYMENT OF INSURANCE PREMIUMS: You may automatically pay your
Minnesota Life insurance premiums from your Advantus Money Market account.
REDUCED SALES CHARGES: Letter of Intent, combined purchases with spouse,
children or single trust estates, and the Right of Accumulation make it possible
for you to reduce the sales charge, if any.
AUTOMATIC INVESTMENT PLAN: This special purchase plan enables you to open an
Advantus Fund account for as little as $25 and lower your average share cost
through "dollar-cost averaging." (Dollar-cost averaging does not assure a
profit, nor does it prevent loss in declining markets.) The Automatic Investment
Plan allows you to invest automatically monthly, semi-monthly or quarterly from
your checking or savings account.
IRAs, OTHER QUALIFIED PLANS: You can use the Advantus Family of Funds for your
Traditional, Roth or Education Individual Retirement Account or other qualified
plans including: SEP IRA's, SIMPLE IRA's, Profit Sharing, 401(k) Money Purchase
or Defined Benefit plans.
TELEPHONE REDEMPTION: You may call us and redeem shares over the phone. The
proceeds will be sent by check to the address of record for the account or wire
transferred to your bank of record for the account. Wire transfers are for
amounts over $500. The prevailing wire charge will be added to the withdrawal
amount. The Telephone Redemption privilege will automatically be established
unless otherwise indicated on the Account Application. Telephone Redemption may
be changed (added/deleted) at any time by submitting a request in writing. To
have the redemption automatically deposited into your checking account, please
send a voided check
15
<PAGE>
from your bank. Depending on the performance of the underlying investment
options, the value may be worth more or less than the original amount invested
upon redemption. Some limitations apply, please refer to the prospectus for
details.
ACCOUNT UPDATES: You'll receive written confirmation of every investment you
initiate and quarterly statements to help you track all of your Advantus Fund
investments and annual tax statements. Semi-annual and annual reports will
provide you with portfolio information, fund performance data and the current
investment outlook.
TOLL-FREE SERVICE LINE: For your convenience in obtaining information and
assistance directly from Advantus Shareholder Services, call 1-800-665-6005.
Advantus Account Representatives are available Monday through Friday from 7:30
a.m. to 5:15 p.m. Central Time. Our voice response system is available 24 hours,
seven days a week. This system allows you to access current net asset values,
account balances and recent account activity.
INTERNET ADDRESS: www.AdvantusFunds.com
HOW TO INVEST
You can invest in one or more of the eleven Advantus Funds through a local
Registered Representative of Ascend Financial Services, Inc., distributor of the
Funds. Contact your representative for information and a prospectus for any of
the Advantus Funds you are interested in. To find a Registered Representative
near you, call the toll-free service line (1-800-665-6005) or visit
www.AdvantusFunds.com.
MINIMUM INVESTMENTS: Your initial investment in any of the Advantus Funds can
be as small as $25 when you use our Automatic Investment Plan. Minimum lump-sum
initial investment is $250. Minimum subsequent investment is $25.
THE FUND'S MANAGER
Advantus Capital Management, Inc., investment adviser to the Fund, selects and
reviews the Fund's investments and provides executive and other personnel for
the Fund's management. (For the Advantus International Balanced Fund, Inc.,
Advantus Enterprise Fund, Inc., and Advantus Venture Fund, Inc., the
sub-adviser, Templeton Investment Counsel, Inc., Credit Suisse Asset Management,
LLC, and State Street Research & Management Company, respectively, selects the
Fund's investments.)
Advantus Capital Management, Inc. manages twelve mutual funds containing
$3.2 billion in assets in addition to $11.5 billion in assets for other clients.
Advantus Capital's seasoned portfolio managers average more than 14 years of
investment experience.
ADVANTUS FAMILY OF FUNDS
Advantus Bond Fund
Advantus Horizon Fund
Advantus Spectrum Fund
Advantus Enterprise Fund
Advantus Cornerstone Fund
Advantus Money Market Fund
Advantus Mortgage Securities Fund
Advantus International Balanced Fund
Advantus Venture Fund
Advantus Index 500 Fund
Advantus Real Estate Securities Fund
16
<PAGE>
THIS REPORT HAS BEEN PREPARED FOR SHAREHOLDERS AND MAY BE DISTRIBUTED
TO OTHERS ONLY IF PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS.
READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.
[ADVANTUS -TM- FAMILY OF FUNDS]
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>
<TABLE>
<S> <C>
ASCEND FINANCIAL SERVICES, INC. PRESORTED STANDARD
400 ROBERT STREET NORTH U.S. POSTAGE PAID
ST. PAUL, MN 55101-2098 ST. PAUL MN
PERMIT NO. 3547
FORWARDING SERVICE REQUESTED
</TABLE>
F.48643 Rev. 11-2000
