<PAGE>
[LOGO]
SEMI-ANNUAL REPORT TO SHAREHOLDERS
ADVANTUS SPECTRUM FUND
MARCH 31, 1995
<PAGE>
ADVANTUS SPECTRUM FUND
TABLE OF CONTENTS
PERFORMANCE UPDATE 2
INVESTMENTS IN SECURITIES 7
STATEMENT OF ASSETS AND
LIABILITIES 12
STATEMENT OF OPERATIONS 13
STATEMENT OF CHANGES IN NET
ASSETS 14
NOTES TO FINANCIAL STATEMENTS 15
SHAREHOLDER VOTING RESULTS 20
SHAREHOLDER SERVICES 21
<PAGE>
May 15, 1995
[PHOTO]
Dear Shareholders:
Practically everyone would like to annualize the first quarter results. Both
bonds and equities provided excellent returns for investors according to
Ibbotson Associates. For now, investors seem to have positive expectations on
interest rates and are enjoying the benefits on earnings attributed to the
declining dollar. Additionally, they have become increasingly confident in the
ability of the Federal Reserve to engineer a soft landing (i.e., low inflation
without a recession) for the economy.
For the last six months there was even more good news for the markets. The
November election results combined with two additional Federal Reserve moves to
raise short term interest rates and good news on inflation amid signs of slower
economic growth all helped restore investor confidence.
What can be confusing is that a soft landing and a recession often look very
much the same. The economy is on an unpredictable course, and experts seem to be
particularly divided in their opinions. (Opinions always seem to get farther
apart when markets set new highs.) Bulls argue that earnings are excellent and
will remain healthy because of stringent cost controls and improving overseas
operations. Bears believe the Dow is at its peak for the cycle. Also, the
consensus of a soft landing can be shaken badly if the Fed has to raise interest
rates to protect the dollar. Finally, all signs do not indicate inflation can
remain under control.
There is much evidence that we have entered a period where interest rates,
whether increasing or decreasing, are likely to trade in a narrower range.
Slower but steady economic growth, coupled with a moderate inflationary
environment should prove to be positive for fixed income investments. The
uncertainty in the economy over whether we are heading toward a recession or a
soft landing should create buying opportunities in the equity markets.
The saga of the dollar reaffirms the fact that most events are neither totally
positive nor totally negative. The dollar will buy less in Europe and Japan, but
will buy more in Mexico and Canada than a year ago. However, determining which
investments benefit and which suffer from any event is very difficult and
requires experienced professionals to make the best decisions.
Finally, as always, it is important to remember not to vary from your investment
plan and that diversification across asset types and geographic regions is
important because asset classes tend to perform differently from each other in
different market conditions.
Sincerely,
Paul Gooding, President
Advantus Capital Management, Inc.
<PAGE>
ADVANTUS SPECTRUM FUND
PERFORMANCE UPDATE
[PHOTO]
THOMAS A. GUNDERSON, CFA
PORTFOLIO MANAGER
The Advantus Spectrum Fund is a mutual
fund seeking the most favorable total
return (including interest, dividends and
capital appreciation) consistent with
preservation of capital. To achieve this
objective, the Fund will vary the
composition of its portfolio with
prevailing economic conditions. At any
given time, the Fund's portfolio may be
primarily composed of equity securities
(common stock, preferred stock and
securities convertible into equity
securities), mortgage-related securities,
debt securities, money market securities
or any combination of these securities.
The investment adviser's positioning of
the portfolio is determined by the
intermediate term outlook for economic
trends and market momentum.
-Dividends paid quarterly.
-Capital gains distributions paid annually.
PERFORMANCE
With a return of over 6.1 percent for the Class A during the first six months of
fiscal 1995 (Class B returned 5.7 percent for the same period), the year is off
to a strong start.* Despite a conservative asset allocation throughout the
period, above average performance from both the stock and fixed income portions
of the Fund led to performance which exceeded its peers. By comparison, the
average Lipper Flexible** fund gained 5.0 percent over the past six months.
Due to the conservative/defensive asset allocation, the Fund underperformed the
theoretical return of the Merrill Lynch-Wilshire Capital Markets Index+ return
of 6.95 percent over the past six months.
PORTFOLIO RECAP
Signs of a slowing economy sparked a bond market rally that began in early
November and continued through March of 1995. The Spectrum Fund was well
positioned to take advantage of the bond rally over the past six months. The
stock market also posted strong gains and moved to record highs during the
quarter. Stocks were driven by the lower interest rates as well as money flowing
into the U.S. market from foreign/emerging markets.
The asset allocation over the past six months favored bonds at 50 percent to 55
percent of the portfolio, while stocks were 40 percent to 45 percent of the
portfolio, and cash levels were at 5 percent to 10 percent of the fund. In
hindsight, we were correct in finding bonds attractive, but we underestimated
the positive reaction from stocks driven by the late cycle decline in interest
rates.
Within the stock market, strong performance from the stable "defensive" stocks
moved these types of stocks to high valuation levels. Consumer nondurables such
as household products, hospital supplies, pharmaceutical companies, and other
stable growth companies have become very popular stocks to own as the economy
appears to be slowing. As their popularity increases, so does the valuation. As
a result of these high valuation levels, the portfolio has a relatively low
investment exposure to this broad area. We still favor technology, and companies
that use technology to lower the costs of their products.
The stock holdings appreciated along with the overall market. Strong performance
came from Intel (semiconductors), Danka Business Systems (business copier
distribution), Medtronic (medical devices), and MGIC
2
<PAGE>
ADVANTUS SPECTRUM FUND
MARCH 31, 1995
Investment (mortgage insurance). Disappointing performance came from Heilig-
Meyers (furniture retailing), Newbridge Networks, and DSC Communication (both
telecommunications equipment). We continue to apply our strategy of investing in
companies with an above average growth rate that are trading at reasonable
valuation levels.
Selectively we have taken some profits in technology, selling Intel from roughly
3 percent to 2 percent of the stock portfolio and selling Integrated Device
Technologies from 2 percent to 1 percent of the stock portfolio.
The relative performance from the fixed income portion of the account was very
strong. We were well positioned on the yield curve, with significant weight in
the 10 year area, to take advantage of the steepening of the yield curve. Also,
several individual bonds rallied as their credit quality improved subsequent to
our purchase.
OUTLOOK
The current asset allocation of 40 percent stocks, 50 percent bonds, and 10
percent cash indicates our opinion of the valuation level for stocks. At the
current valuation levels, stocks do not provide adequate potential return to
compensate for their higher risk profile to warrant a majority weight in the
portfolio.
The market is now assuming that we have pulled off a so called "soft landing." I
believe it is likely that the markets will return to worry about either: a) the
economy is starting to re-accelerate in response to the lower rates, or b) the
economy is slowing too fast--are we headed for a recession? Remember, going into
a soft landing and going into a recession feel just about the same. Until the
economy comes out the other side, one does not know for sure how far down it
will go. Either of these events can create uncertainty, and along with
uncertainty comes buying opportunities.
The current 10 percent cash in the portfolio is available to take advantage of
future buying opportunities.
*Historical results are not an indication of future performance. These
performance results do not reflect the impact of Class A's maximum 5 percent
front-end sales charge or Class B's maximum 5 percent contingent deferred sales
charge. Class C commenced operations March 1, 1995, accordingly, performance is
not presented.
**Average return of 40 flexible funds according to Lipper Analytical Services,
Inc.
+The Merrill Lynch-Wilshire Capital Markets Index is a market value-weighted
index measuring the total return performance of the combined domestic taxable
fixed income and equity markets. It includes the entire domestic common stock
universe for which daily pricing is available, as well as all publicly placed
domestic taxable debt issues with at least one year remaining to maturity and at
least ten million dollars par value outstanding.
3
<PAGE>
ADVANTUS SPECTRUM FUND
MARCH 31, 1995
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN ADVANTUS
SPECTRUM FUND,
MERRILL LYNCH--WILSHIRE CAPITAL
MARKETS INDEX AND CONSUMER PRICE INDEX
CLASS A
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
ML-WILSHIRE CAPITAL MARKETS CLASS A SHARES' AVERAGE ANNUAL TOTAL
CLASS A INDEX CPI RETURN:
<S> <C> <C> <C> <C> <C> <C>
11/16/87 10000 10000 10000 One year 2.14%
10/31/88 10504 10762 10426 Five year 8.37%
10/31/89 12272 12740 10904 Since inception (11/16/87) 9.34%
10/31/90 12207 12341 11590
10/31/91 15381 15647 11929
10/31/92 17084 17215 12311
10/31/93 18567 19809 12641
9/30/94 18211 19578 13023
3/31/95 19320 20940 13154
</TABLE>
On the chart above you can see how the Advantus Spectrum Fund Class A shares'
total return compared to the Merrill Lynch--Wilshire Capital Markets Index and
the Consumer Price Index. The three lines represent the cumulative total return
of a hypothetical initial $10,000 investment made on the inception date of the
Advantus Spectrum Fund Class A shares (November 16, 1987) through March 31,
1995.
4
<PAGE>
ADVANTUS SPECTRUM FUND
MARCH 31, 1995
CLASS B
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
ML-WILSHIRE CAPITAL MARKETS CLASS B SHARES' TOTAL
CLASS B INDEX CPI RETURN:
<S> <C> <C> <C> <C> <C> <C>
8/19/94 10000 10000 10000 Since inception (08/19/94) 0.76%
9/30/94 10003 9952 10067
3/31/95 10076 10644 10168
</TABLE>
On the chart above you can see how the Advantus Spectrum Fund Class B shares'
total return compared to the Merrill Lynch--Wilshire Capital Markets Index and
the Consumer Price Index. The three lines represent the cumulative total return
of a hypothetical $10,000 investment made on the inception date of the Advantus
Spectrum Fund Class B shares (August 19, 1994) through March 31, 1995.
The above charts are useful because they provide you with more information about
your investments. There are limitations, however. An index may reflect the
performance of securities that the Fund may not hold. Also, the index does not
deduct sales charges, investment advisory fees and other fund expenses, whereas
your Fund does. Performance presented for the Fund reflects the deduction of the
maximum 5 percent front-end sales charge for Class A and the maximum 5 percent
contingent deferred sales charge for Class B. Sales charges pay for your
financial adviser's investment advice. Individuals cannot buy even an unmanaged
index fund without incurring some charges and expenses.
Historical results are not an indication of future performance
5
<PAGE>
ADVANTUS SPECTRUM FUND
MARCH 31, 1995
BOND PORTFOLIO CHARACTERISTICS--QUALITY BREAKDOWN
<TABLE>
<CAPTION>
% OF
BOND
RATING PORTFOLIO
- - ------------------------------------------------------------ --------
<S> <C>
U.S. Treasury............................................... 37.3%
U.S. Government Agencies.................................... 20.2%
AAA......................................................... 6.0%
AA.......................................................... 6.7%
A........................................................... 12.9%
BBB......................................................... 16.9%
--------
100.0%
--------
--------
</TABLE>
FIVE LARGEST STOCK HOLDINGS
<TABLE>
<CAPTION>
MARKET % OF STOCK
COMPANY SHARES VALUE PORTFOLIO
- - -------------------------------------------------- ------ ---------- ----------
<S> <C> <C> <C>
General Electric Company.......................... 17,126 $ 926,945 4.0%
Columbia/HCA Healthcare Corporation............... 20,025 861,075 3.7%
CUC International Inc............................. 17,210 669,039 2.9%
First Financial Management........................ 9,200 664,700 2.8%
Lubrizol Corporation.............................. 17,990 634,148 2.7%
---------- ---
$3,755,907 16.1%
---------- ---
---------- ---
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Common Stocks 41.50%
Bonds 50.60%
Cash and Other
Assets/Liabilities 7.90%
</TABLE>
6
<PAGE>
ADVANTUS SPECTRUM FUND
INVESTMENTS IN SECURITIES
MARCH 31, 1995
(UNAUDITED)
(Percentages of each investment category relate to total net assets.)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
- - ------------ -------------
<C> <S> <C>
COMMON STOCKS (41.5%)
CAPITAL GOODS (5.2%)
Machinery (5.2%)
19,748 Case Equipment Corporation............................. $ 493,700
17,126 General Electric Company............................... 926,945
12,600 Huaneng Power International Inc. (b)(d)................ 200,025
5,640 Kaydon Corporation..................................... 148,755
25,300 Pyxis Corporation (b).................................. 524,975
15,300 Raychem Corporation.................................... 621,562
-------------
2,915,962
-------------
CONSUMER GOODS AND SERVICES (17.2%)
Consumer Goods (6.0%)
20,025 Columbia/HCA Healthcare Corporation.................... 861,075
11,540 Fisher Scientific International Inc.................... 343,315
3,660 Medtronic Inc.......................................... 253,913
10,304 Pepsico, Inc........................................... 401,856
3,510 Pfizer Inc............................................. 300,982
2,395 Procter & Gamble Company............................... 158,669
5,783 R.P. Scherer Corporation (b)........................... 290,596
5,960 United Health Care..................................... 278,630
12,300 Value Health Incorporated (b).......................... 470,475
-------------
3,359,511
-------------
Consumer Services (4.8%)
17,210 CUC International Inc. (b)............................. 669,039
<CAPTION>
MARKET
SHARES VALUE(A)
- - ------------ -------------
<C> <S> <C>
CONSUMER GOODS AND SERVICES--CONTINUED
20,300 Danka Business Systems PLC (d)......................... $ 532,875
9,400 Eastman Kodak Company.................................. 499,375
11,569 GTECH Holdings Corporation (b)......................... 250,179
13,185 Manpower............................................... 423,568
6,910 The Readers Digest Association, Inc.................... 332,544
-------------
2,707,580
-------------
Retail (4.3%)
17,900 Heilig-Meyers Corporation.............................. 391,563
13,220 The Home Depot, Inc.................................... 584,985
5,000 Kohl's Inc. (b)........................................ 221,250
19,976 Office Depot, Inc. (b)................................. 486,915
8,800 Sears, Roebuck and Co.................................. 469,700
9,740 Wal-Mart Stores, Inc................................... 248,370
-------------
2,402,783
-------------
Consumer Cyclicals (2.1%)
9,589 Exide Corporation...................................... 352,396
19,500 Sunbeam-Oster Co....................................... 446,062
7,100 Whirlpool Corporation.................................. 388,725
-------------
1,187,183
-------------
CREDIT SENSITIVE (7.4%)
Finance (5.4%)
2,278 American Internationl Group, Inc....................... 237,481
5,950 Federal Home Loan Mortgage Corporation................. 359,975
9,410 First Data Corp........................................ 488,144
9,200 First Financial Management............................. 664,700
</TABLE>
See accompanying notes to investments in securities.
7
<PAGE>
ADVANTUS SPECTRUM FUND
INVESTMENTS IN SECURITIES--CONTINUED
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
- - ------------ -------------
<C> <S> <C>
CREDIT SENSITIVE--CONTINUED
6,171 First Union Corporation................................ $ 267,667
5,000 MBIA Inc............................................... 314,375
9,300 MGIC Investment Corporation............................ 378,975
12,800 Norwest Corporation.................................... 324,800
-------------
3,036,117
-------------
Utilities (2.0%)
10,230 AT & T Corp............................................ 529,402
7,255 Florida Progress Corporation........................... 218,557
12,100 New England Electric System............................ 373,588
-------------
1,121,547
-------------
INTERMEDIATE GOODS AND SERVICES (5.2%)
Energy (2.2%)
4,650 Amoco Corporation...................................... 295,856
4,830 Mobil Corporation...................................... 447,379
3,930 Royal Dutch Petroleum (d).............................. 471,600
-------------
1,214,835
-------------
Materials (2.7%)
6,900 Air Products and Chemicals, Inc........................ 359,662
4,900 The Dow Chemical Company............................... 357,700
17,990 Lubrizol Corporation................................... 634,148
<CAPTION>
MARKET
SHARES VALUE(A)
- - ------------ -------------
<C> <S> <C>
INTERMEDIATE GOODS AND SERVICES-- CONTINUED
7,800 Praxair Inc............................................ $ 181,350
-------------
1,532,860
-------------
Transportation (.3%)
2,915 Norfolk Southern Corporation........................... 194,941
-------------
TECHNOLOGY (6.5%)
7,483 Computer Associates International...................... 444,303
17,560 DSC Communications (b)................................. 571,798
16,800 EMC Corporation (b).................................... 281,400
9,620 Informix Corporation (b)............................... 330,688
6,000 Integrated Device Technology, Inc. (b)................. 222,000
6,206 Intel.................................................. 526,734
7,170 Minnesota Mining and Manufacturing Company............. 416,756
13,480 Newbridge Networks Corporation (b)(d).................. 441,470
13,365 Oracle Systems Corporation (b)......................... 417,656
-------------
3,652,805
-------------
Total common stocks (cost: $20,365,588)................ 23,326,124
-------------
</TABLE>
See accompanying notes to investments in securities.
8
<PAGE>
ADVANTUS SPECTRUM FUND
INVESTMENTS IN SECURITIES--CONTINUED
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE(A)
- - ------------ ------------
<C> <S> <C> <C> <C>
LONG-TERM DEBT SECURITIES (50.6%)
GOVERNMENT OBLIGATIONS (32.3%)
U.S. GOVERNMENT AND AGENCIES OBLIGATIONS (29.0%)
U.S. Treasury (18.9%)
$ 400,000 U.S. Treasury Note..................................... 7.875% 07/15/96 $ 405,750
800,000 U.S. Treasury Note..................................... 8.000% 01/15/97 816,249
500,000 U.S. Treasury Note..................................... 6.750% 02/28/97 499,531
2,400,000 U.S. Treasury Note..................................... 8.500% 04/15/97 2,476,500
600,000 U.S. Treasury Note..................................... 8.750% 10/15/97 625,687
1,100,000 U.S. Treasury Note..................................... 7.875% 04/15/98 1,126,813
1,750,000 U.S. Treasury Note..................................... 6.250% 02/15/03 1,647,732
650,000 U.S. Treasury Bond..................................... 12.000% 08/15/13 894,156
2,000,000 U.S. Treasury Bond..................................... 8.125% 08/15/19 2,120,000
------------
10,612,418
------------
Government National Mortgage Association (4.9%)
477,700 ....................................................... 7.500% 10/15/23 461,272
423,073 ....................................................... 8.500% 04/15/22 431,006
737,384 ....................................................... 8.000% 08/15/24 730,769
496,226 ....................................................... 6.500% 11/15/23 449,228
236,835 ....................................................... 7.500% 02/15/24 228,546
486,526 ....................................................... 7.500% 06/15/24 469,498
------------
2,770,319
------------
Federal National Mortgage Association (1.7%)
750,000 ....................................................... 8.590% 02/03/05 760,597
223,597 Principal-only PAC (c)................................. 6.500% 07/25/22 217,946
------------
978,543
------------
Federal Home Loan Bank (2.2%)
1,250,000 ....................................................... 7.270% 10/17/97 1,252,796
------------
Tennessee Valley Authority (1.3%)
750,000 ....................................................... 6.870% 09/19/97 742,327
------------
OTHER GOVERNMENT (1.6%)
500,000 Hydro-Quebec (d)....................................... 8.050% 07/07/24 499,170
</TABLE>
See accompanying notes to investments in securities.
9
<PAGE>
ADVANTUS SPECTRUM FUND
INVESTMENTS IN SECURITIES--CONTINUED
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE(A)
- - ------------ ------------
<C> <S> <C> <C> <C>
GOVERNMENT OBLIGATIONS--CONTINUED
$ 450,000 Quebec Province of Canada (d).......................... 7.500% 07/15/23 $ 397,674
------------
896,844
------------
STATE AND LOCAL GOVERNMENT (1.7%)
974,000 Wyoming Community Development.......................... 6.850% 06/01/10 927,735
------------
Total government obligations (cost: $18,272,253).................................. 18,180,982
------------
CORPORATE OBLIGATIONS (18.3%)
BASIC INDUSTRIES (.5%)
Chemicals (.5%)
250,000 Methanex Corporation................................... 8.875% 11/15/01 258,125
------------
CONSUMER STAPLES (3.5%)
Drugs (1.4%)
850,000 American Home Products Corporation..................... 6.500% 10/15/02 795,929
------------
Food (.8%)
428,572 General Mills Inc...................................... 6.235% 03/15/97 425,269
------------
Media (1.3%)
750,000 News America........................................... 8.500% 02/23/25 759,945
------------
CREDIT SENSITIVE (.8%)
Hardware and Tools (.8%)
500,000 Black & Decker Corporation............................. 7.000% 02/01/06 452,141
------------
ENERGY (3.0%)
Natural Gas Distribution (1.9%)
1,000,000 Consolidated Natural Gas Co............................ 8.750% 06/01/99 1,043,656
------------
Petroleum Refining (1.1%)
600,000 Lyondell Petrochemical Co.............................. 10.250% 02/01/00 641,736
------------
FINANCIAL (9.7%)
Banks/Savings and Loans (.9%)
500,000 Citicorp............................................... 8.000% 02/01/03 497,899
------------
Consumer Finance (4.8%)
900,000 Associates Corporation of North America................ 6.750% 10/15/99 873,174
1,000,000 Ford Motor Credit Company.............................. 5.625% 12/15/98 938,392
1,000,000 GMAC................................................... 5.500% 12/15/01 874,012
------------
2,685,578
------------
</TABLE>
See accompanying notes to investments in securities.
10
<PAGE>
ADVANTUS SPECTRUM FUND
INVESTMENTS IN SECURITIES--CONTINUED
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE(A)
- - ------------ ------------
<C> <S> <C> <C> <C>
CORPORATE OBLIGATIONS--CONTINUED
Real Estate (4.0%)
$ 750,000 Green Tree Financial Corp.............................. 10.250% 06/01/02 $ 836,936
500,000 Property Trust of America.............................. 7.500% 02/15/14 436,083
1,000,000 United Dominion Realty Trust........................... 8.500% 09/15/24 997,347
------------
2,270,366
------------
UTILITIES (.8%)
Telephones (.8%)
500,000 GTE Northwest Inc...................................... 6.125% 02/15/99 479,618
------------
Total corporate obligations (cost: $10,509,360)................................... 10,310,262
------------
Total long-term debt securities (cost: $28,781,613)............................... 28,491,244
------------
SHORT-TERM SECURITIES (8.0%)
300,000 Federal National Mortgage Association Discount Note.... 6.040% 04/07/95 299,653
1,450,000 U.S. Treasury Bill..................................... 5.750%-5.830% 05/11/95 1,440,588
600,000 U.S. Treasury Bill..................................... 5.810%-5.850% 06/01/95 594,092
750,000 American General Finance CP............................ 6.110% 05/02/95 746,040
675,000 McGraw-Hill Inc CP..................................... 6.140% 05/09/95 670,656
750,000 Pfizer Inc CP.......................................... 6.050% 04/07/95 749,134
------------
Total short-term securities (cost: $4,500,191).................................... 4,500,163
------------
Total investments in securities (cost: $53,647,392) (e)........................... $ 56,317,531
------------
------------
<FN>
Notes to Investments in Securities
(a) Securities are valued by procedures described in note 2 to the financial
statements.
(b) Presently non-income producing.
(c) Represents a debt security that entitles holders to receive only principal
payments on the underlying mortgages. The yield to maturity of a
principal-only security is sensitive to the rate of principal payments on
the underlying mortgage assets. A slower (more rapid) than expected rate of
principal repayments may have an adverse (positive) effect on yield to
maturity. Interest rate disclosed represents current yield based upon the
current cost basis and estimated timing of future cash flows.
(d) The Fund held 4.5% of net assets in foreign securities as of March 31,
1995.
(e) At March 31, 1995 the cost of securities for federal income tax purposes
was $53,719,336. The aggregate unrealized appreciation and depreciation of
investments in securities based on this cost were:
Gross unrealized appreciation..................... $3,734,337
Gross unrealized depreciation..................... (1,136,142)
----------
Net unrealized appreciation....................... $2,598,195
----------
----------
</TABLE>
11
<PAGE>
ADVANTUS SPECTRUM FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1995
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investments in securities, at market value--see accompanying schedule for
detailed listing (identified cost: $53,647,392)................................ $56,317,531
Cash in bank on demand deposit.................................................. 4,694
Receivable for Fund shares sold................................................. 36,490
Receivable for investment securities sold....................................... 306,538
Accrued interest and dividends receivable....................................... 584,558
-----------
Total assets................................................................ 57,249,811
-----------
LIABILITIES
Payable for investment securities purchased..................................... 885,405
Payable for Fund shares repurchased............................................. 23,053
Payable to Adviser.............................................................. 64,100
-----------
Total liabilities........................................................... 972,558
-----------
Net assets applicable to outstanding capital stock.............................. $56,277,253
-----------
-----------
Represented by:
Capital stock--$.01 par value (note 1)........................................ $ 41,856
Additional paid-in capital.................................................... 53,056,233
Distributions in excess of net investment income.............................. (1,118)
Accumulated net realized gains from investments............................... 510,143
Unrealized appreciation of investments........................................ 2,670,139
-----------
Total--representing net assets applicable to outstanding capital stock...... $56,277,253
-----------
-----------
Net assets applicable to outstanding Class A shares............................. $55,393,502
-----------
-----------
Net assets applicable to outstanding Class B shares............................. $ 873,642
-----------
-----------
Net assets applicable to outstanding Class C shares............................. $ 10,109
-----------
-----------
Shares outstanding and net asset value per share:
Class A--Shares outstanding 4,119,703......................................... $ 13.45
-----------
-----------
Class B--Shares outstanding 65,110............................................ $ 13.42
-----------
-----------
Class C--Shares outstanding 754............................................... $ 13.42
-----------
-----------
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
ADVANTUS SPECTRUM FUND
STATEMENT OF OPERATIONS
PERIOD FROM OCTOBER 1, 1994 TO MARCH 31, 1995
(UNAUDITED)
<TABLE>
<S> <C>
Investment income:
Interest...................................................................... $1,127,573
Dividends..................................................................... 174,769
----------
1,302,342
----------
Expenses (note 4):
Investment advisory fee....................................................... 164,083
Distribution fees--Class A.................................................... 94,873
Distribution fees--Class B.................................................... 2,398
Distribution fees--Class C.................................................... 9
Administrative services fee................................................... 20,000
Custodian fees................................................................ 7,505
Auditing and accounting services.............................................. 15,925
Legal fees.................................................................... 2,839
Directors' fees............................................................... 601
Registration fees............................................................. 22,318
Printing and shareholder reports.............................................. 17,065
Insurance..................................................................... 3,009
Other......................................................................... 11,920
----------
Total expenses.............................................................. 362,545
----------
Investment income--net...................................................... 939,797
----------
Realized and unrealized gains on investments:
Net realized gains on investments (note 3).................................... 587,276
Net change in unrealized appreciation or depreciation on investments.......... 1,736,658
----------
Net gains on investments.................................................... 2,323,934
----------
Net increase in net assets resulting from operations............................ $3,263,731
----------
----------
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
ADVANTUS SPECTRUM FUND
STATEMENT OF CHANGES IN NET ASSETS
PERIOD FROM OCTOBER 1, 1994 TO MARCH 31, 1995 AND
PERIOD FROM NOVEMBER 1, 1993 TO SEPTEMBER 30, 1994
(UNAUDITED)
<TABLE>
<CAPTION>
1995 1994
----------- -----------
<S> <C> <C>
Operations:
Investment income--net.............................................. $ 939,797 $ 1,160,613
Net realized gains on investments................................... 587,276 1,523,789
Net change in unrealized appreciation or depreciation of
investments........................................................ 1,736,658 (3,810,302)
----------- -----------
Increase (decrease) in net assets resulting from operations....... 3,263,731 (1,125,900)
----------- -----------
Distributions to shareholders from:
Investment income--net:
Class A........................................................... (935,338) (1,170,626)
Class B........................................................... (9,473) (982)
Class C........................................................... (75) --
Excess of net investment income:
Class A........................................................... (1,106) --
Class B........................................................... (11) --
Class C........................................................... (1) --
Net realized gains on investments:
Class A........................................................... (1,538,700) (386,851)
Class B........................................................... (10,913) --
----------- -----------
Total distributions............................................... (2,495,617) (1,558,459)
----------- -----------
Capital share transactions (notes 4 and 5):
Proceeds from sales:
Class A........................................................... 2,865,199 9,665,718
Class B........................................................... 700,402 140,000
Class C........................................................... 10,000 --
Shares issued as a result of reinvested dividends:
Class A........................................................... 2,303,558 1,351,297
Class B........................................................... 19,974 982
Class C........................................................... 76 --
Payments for redemption of shares:
Class A........................................................... (5,809,388) (10,096,669)
Class B........................................................... (6,001) --
----------- -----------
Increase in net assets from capital share transactions............ 83,820 1,061,328
----------- -----------
Total increase (decrease) in net assets........................... 851,934 (1,623,031)
Net assets at beginning of period..................................... 55,425,319 57,048,350
----------- -----------
Net assets at end of period [including (distributions in excess of)
undistributed net investment income of ($1,118) and $5,089,
respectively]........................................................ $56,277,253 $55,425,319
----------- -----------
----------- -----------
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
ADVANTUS SPECTRUM FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
(UNAUDITED)
(1) ORGANIZATION
The Advantus Spectrum Fund, Inc. (the Fund) is registered under the
Investment Company Act of 1940 (as amended) as a diversified, open-end
management investment company. On February 14, 1995 shareholders of the Fund
approved a name change to Advantus Spectrum Fund, Inc. (effective March 1,
1995). Prior to March 1, 1995 the Fund was known as MIMLIC Asset Allocation
Fund, Inc.
The Fund currently issues three classes of shares: Class A, Class B and
Class C shares. Class A shares are sold subject to a front-end sales charge.
Class B shares are sold subject to a contingent deferred sales charge payable
upon redemption if redeemed within six years of purchase. Class C shares are
sold without either a front-end sales charge or a contingent deferred sales
charge. Both Class B and Class C are subject to a higher Rule 12b-1 fee than
Class A shares. Both Class B and Class C shares automatically convert to Class A
shares at net asset value after a specified holding period. Such holding period
declines as the amount of the purchase increases and ranges from 28 to 84 months
after purchase for Class B shares and 40 to 96 months after purchase for Class C
shares. All three classes of shares have identical voting, dividend, liquidation
and other rights and the same terms and conditions, except that the level of
distribution fees charged differs between Class A, Class B and Class C shares.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed by the Fund are summarized as
follows:
INVESTMENTS IN SECURITIES
Investments in securities traded on a national exchange are valued at the
last sales price on that exchange prior to the time when assets are valued;
securities traded in the over-the-counter market and listed securities for which
no sale was reported on that date are valued on the basis of the last current
bid price. When market quotations are not readily available, securities are
valued at fair value as determined in good faith by the Board of Directors. Such
fair values are determined using pricing services or prices quoted by
independent brokers. Short-term securities are valued at market.
Security transactions are accounted for on the date the securities are
purchased or sold. Realized gains and losses are calculated on the
identified-cost basis. Dividend income is recognized on the ex-dividend date and
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.
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--(CONTINUED)
Net investment income and net realized gains (losses) 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 or net realized gains 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 and paid quarterly in cash
or reinvested in additional shares. Realized gains, if any, are paid annually.
(3) INVESTMENT SECURITY TRANSACTIONS
For the period from October 1, 1994 to March 31, 1995, purchases of
securities and proceeds from sales, other than temporary investments in
short-term securities aggregated $27,485,455 and $30,867,278, respectively.
(4) EXPENSES AND RELATED PARTY TRANSACTIONS
On February 14, 1995 shareholders of the Fund approved a new investment
advisory agreement, effective March 1, 1995, with Advantus Capital Management,
Inc. (Advantus Capital). Advantus Capital is a wholly-owned subsidiary of MIMLIC
Asset Management Company (MIMLIC Management) which, prior to March 1, 1995,
served as investment adviser to the Fund. 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. In
addition, as part of the advisory fee, Advantus Capital pays the expenses of the
Fund's transfer, dividend disbursing and redemption agent (The Minnesota Mutual
Life Insurance Company (Minnesota Mutual), the parent of MIMLIC Management). The
fee for investment management and advisory services is based on the average
daily net assets of the Fund at the annual rate of .60 percent, which is the
same as under the old agreement with MIMLIC Management.
The Fund has adopted separate Plans of Distribution applicable to Class A,
Class B and Class C shares, respectively, relating to the payment of certain
distribution expenses pursuant to Rule 12b-1 under the Investment Company Act of
1940 (as amended). The Fund pays distribution fees to MIMLIC Sales Corporation
(MIMLIC Sales), the underwriter of the Fund, to be used to pay certain expenses
incurred in the distribution, promotion and servicing of the Fund's shares. The
Class A Plan provides for a fee up to .35 percent of average daily net assets of
Class A shares. The Class B Plan provides for a fee up to 1.00 percent of
average daily net assets of Class B shares. The Class B 1.00 percent fee is
comprised of a .75 percent distribution fee and a .25 percent service fee. The
Class C Plan provides for a fee of up to 1.00 percent of average daily net
assets of Class C shares. The Class C 1.00 percent fee is comprised of a .75
percent distribution fee and a .25 percent service fee.
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, and other miscellaneous
expenses.
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(4) EXPENSES AND RELATED PARTY TRANSACTIONS--(CONTINUED)
The Fund pays an administrative services fee to Minnesota Mutual for
accounting, auditing, legal and other administrative services which Minnesota
Mutual provides. Prior to February 1, 1995, the administrative services fee was
$3,450 per month. Effective February 1, 1995, the administrative services fee is
$3,100 per month.
Advantus Capital (MIMLIC Management prior to March 1, 1995) directly incurs
and pays the above operating expenses and the Fund in turn reimburses Advantus
Capital.
Sales charges received by MIMLIC Sales for distributing the Fund's three
classes of shares amounted to $103,891.
As of March 31, 1995, Minnesota Mutual and subsidiaries and the directors
and officers of the Fund as a whole own the following shares:
<TABLE>
<CAPTION>
NUMBER OF SHARES PERCENTAGE OWNED
------------------ ---------------------
<S> <C> <C>
Class A..................................................................... 575,888 14.0%
Class B..................................................................... 3,943 6.1%
Class C..................................................................... 754 100.0%
</TABLE>
Legal fees were paid to a law firm of which the Fund's secretary is a
partner in the amount of $2,454.
(5) CAPITAL SHARE TRANSACTIONS
Transactions in shares for the period from October 1, 1994 to March 31, 1995
and the period from November 1, 1993 to September 30, 1994 for Class A shares,
the period from October 1, 1994 to March 31, 1995 and the period from August 19,
1994 to September 30, 1994 for Class B shares and the period from March 1, 1995
to March 31, 1995 for Class C shares were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
---------------------- -------------------- -----------
1995 1994 1995 1994 1995
---------- ---------- --------- --------- -----------
<S> <C> <C> <C> <C> <C>
Sold........................................................... 218,209 712,411 53,361 10,452 748
Issued for reinvested distributions............................ 178,706 100,454 1,541 74 6
Redeemed....................................................... (441,847) (747,207) (318) -- --
---------- ---------- --------- --------- ---
(44,932) 65,658 54,584 10,526 754
---------- ---------- --------- --------- ---
---------- ---------- --------- --------- ---
</TABLE>
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(6) FINANCIAL HIGHLIGHTS
Per share data for a share of capital stock and selected information for
each period are as follows:
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------------------------------------------
PERIOD FROM
PERIOD FROM NOVEMBER 1,
OCTOBER 1, 1993 TO YEAR ENDED OCTOBER 31,
1994 TO SEPTEMBER 30, ---------------------------------------------------------
MARCH 31, 1995 1994 1993 1992 1991 1990
--------------- --------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period....................... $ 13.28 $ 13.92 $ 13.63 $ 13.05 $ 10.87 $ 11.84
------ ------ ------ ------ ------ ------
Income from investment
operations:
Net investment income....... .22 .28 .29 .38 .48 .55
Net gains or losses on
securities (both realized
and unrealized)............ .55 (.55) .86 1.01 2.28 (.59)
------ ------ ------ ------ ------ ------
Total from investment
operations............... .77 (.27) 1.15 1.39 2.76 (.04)
------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net
investment income.......... (.22) (.28) (.31) (.38) (.51) (.62)
Distributions from capital
gains...................... (.38) (.09) (.55) (.43) (.07) (.31)
------ ------ ------ ------ ------ ------
Total distributions....... (.60) (.37) (.86) (.81) (.58) (.93)
------ ------ ------ ------ ------ ------
Net asset value, end of
period....................... $ 13.45 $ 13.28 $ 13.92 $ 13.63 $ 13.05 $ 10.87
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
Total return (b).............. 6.09%(c) (1.92)%(d) 8.68% 11.07% 26.00% (.53)%
Net assets, end of period (in
thousands)................... $55,394 $55,286 $57,048 $38,417 $18,588 $10,008
Ratio of expenses to average
daily net assets............. 1.32%(g) 1.27%(g) 1.22% 1.35%(h) 1.35%(h) 1.35%(h)
Ratio of net investment income
to average daily net
assets....................... 3.44%(g) 2.24%(g) 2.16% 3.02%(h) 4.07%(h) 4.98%(h)
Portfolio turnover rate
(excluding short-term
securities).................. 51.42% 124.49% 92.06% 123.28% 56.17% 65.81%
<FN>
- - ----------
(a) Commencement of operations.
(b) Total return figures are based on a share outstanding throughout the period
and assumes reinvestment of distributions at net asset value. Total return
figures do not reflect the impact of sales charges.
(c) Total return is presented for the period from October 1, 1994 to March 31,
1995.
(d) Total return is presented for the period from November 1, 1993 to September
30, 1994.
(e) Total return is presented for the period from August 19, 1994, commencement
of operations, to September 30, 1994.
(f) Total return is presented for the period from March 1, 1995, commencement
of operations, to March 31, 1995.
(g) Adjusted to an annual basis.
(h) The Fund's Adviser voluntarily absorbed $13,585, $19,759 and $13,903 in
expenses for the years ended October 31, 1992, 1991 and 1990, respectively.
If Class A shares had been charged for these expenses, the ratio of
expenses to average daily net assets would have been 1.40%, 1.50% and
1.50%, respectively, and the ratio of net investment income to average
daily net assets would have been 2.97%, 3.92% and 4.83%, respectively.
(i) Ratios presented for the period from March 1, 1995 to March 31, 1995 and
August 19, 1994 to September 30, 1994 are not annualized as they are not
indicative of anticipated results.
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
CLASS B CLASS C
------------------------------ ------------
PERIOD FROM PERIOD FROM PERIOD FROM
OCTOBER 1, AUGUST 19, MARCH 1,
1994 TO 1994(A) TO 1995(A) TO
MARCH 31, SEPTEMBER MARCH 31,
1995 30, 1994 1995
------------ ------------ ------------
<S> <C> <C> <C>
Net asset value, beginning of
period...................... $ 13.27 $ 13.36 $ 13.36
------ ------ ------
Income from investment
operations:
Net investment income....... .24 .03 .04
Net gains or losses on
securities (both realized
and unrealized)............ .49 (.03) .12
------ ------ ------
Total from investment
operations............... .73 -- .16
------ ------ ------
Less distributions:
Dividends from net
investment income.......... (.20) (.09) (.10)
Distributions from capital
gains...................... (.38) -- --
------ ------ ------
Total distributions....... (.58) (.09) (.10)
------ ------ ------
Net asset value, end of
period...................... $ 13.42 $ 13.27 $ 13.42
------ ------ ------
------ ------ ------
Total return (b).............. 5.72%(c) (.04)%(e) 1.20%(f)
Net assets, end of period (in
thousands).................. $ 874 $ 140 $ 10
Ratio of expenses to average
daily net assets............ 1.97%(g) .23%(i) .17%(i)
Ratio of net investment income
to average daily net
assets...................... 3.37%(g) .37%(i) .28%(i)
Portfolio turnover rate
(excluding short-term
securities)................. 51.42% 124.49% 51.42%
</TABLE>
19
<PAGE>
SHAREHOLDER VOTING RESULTS
On February 14, 1995, a regular shareholder meeting was held. Shareholders
of record on December 19, 1994 were entitled to vote on the proposals described
below. All classes of shares (only Class A and Class B were in existence on
December 19, 1994) of the Fund were entitled to vote on each proposal, and all
shares were voted in the aggregate for each proposal and not by class.
(1) To elect a Board of Directors as follows:
<TABLE>
<CAPTION>
VOTES VOTES
DIRECTOR FOR WITHHELD
---------------------- --------- ---------
<S> <C> <C>
Paul H. Gooding.......................................................... 2,175,106 43,293
Frederick P. Feuerherm................................................... 2,175,106 42,536
Ralph D. Ebbott.......................................................... 2,175,106 48,213
Ellen S. Berscheid....................................................... 2,175,106 47,138
Charles E. Arner......................................................... 2,175,106 62,561
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF SHARES VOTING
-------------------------------
FOR AGAINST ABSTAIN
--------- --------- ---------
<C> <S> <C> <C> <C>
(2) To ratify or reject the selection by the Board of
Directors of KPMG Peat Marwick LLP as the independent
public accountant for the Fund for the fiscal year
ending September 30, 1995.............................. 2,136,764 21,344 57,184
(3) To approve or reject the proposal to amend the Fund's
Articles of Incorporation to change the name of the
Fund from MIMLIC Asset Allocation Fund, Inc. to
Advantus Spectrum Fund, Inc............................ 2,081,151 54,187 80,954
(4) To approve or disapprove a new Investment Advisory
Agreement with Advantus Capital Management, Inc., a
wholly-owned subsidiary of MIMLIC Asset Management
Company, the previous investment adviser of the
Fund................................................... 2,067,242 61,601 86,450
</TABLE>
20
<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 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 you fund account--subject to minimum guidelines.
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 an Advantus Money Market account.
REDUCED SALES CHARGES: Letter of Intent, combined purchases with spouse,
children or single trust estates, and the Right of Accumulation make it possible
for you to reduce the sales charge on Advantus's non-money market funds.
SPECIAL PURCHASE PLANS: Our special purchase plans enable you to open an
Advantus fund account for as little as $25 and lower your average share cost
through "dollar-cost averaging." (Dollar-cost averaging does not assure a
profit, nor does it prevent loss in declining markets.) One of these plans--The
Automatic Investment Plan--allows you to invest automatically each month from
your checking or saving account.
IRAS, OTHER QUALIFIED PLAN: You can use the Advantus Family of Funds for your
Individual Retirement Account or other qualified plan including SEPs, profit
sharing, money purchase or defined benefit plans.
GROUP INVESTMENT PLAN: This plan provides employers and employees with a
convenient means for investing in the funds through payroll deduction.
21
<PAGE>
TELEPHONE REDEMPTION: You may call us and redeem shares over the phone. Amounts
over $1,000 will be wire transferred to your personal bank account. The
prevailing wire charge will be added to the withdrawal amount. Amounts for less
than $1,000 will be mailed to your bank on your behalf. To set this up, please
send a voided check from your bank.
ACCOUNT UPDATES: You'll receive written confirmation of every investment you
initiate (monthly statements for your Money Market account) and quarterly
reports to help you track all of your investments in the Advantus Family of
Funds, and annual tax statements. Semiannual and annual reports will provide you
with portfolio information, fund performance data and the current investment
outlook.
TOLL-FREE SERVICE LINE: For your convenience in obtaining information and
assistance directly from MIMLIC Sales Corporation, call 1-800-443-3677. Our
voice response system is available from 7 a.m. to 3 a.m. Monday through Friday,
and 8 a.m. to 5 p.m. on Saturday. This system allows you to access current net
asset values and your account balances.
HOW TO INVEST
You can invest in one or more of the eight Advantus Funds through your local
registered representative of MIMLIC Sales Corporation, distributor of the Funds.
Contact your representative for information and a prospectus for any of the
Advantus Funds you are interested in.
MINIMUM INVESTMENTS: Your initial investment in any of the Advantus Funds can
be as small as $25 when you use our Systematic Investment Plan. Minimum lump-sum
initial investment is $250. Minimum subsequent investment is $25.
THE FUND'S MANAGER
Advantus Capital Management, Inc., investment adviser to the Fund, selects
and reviews the Fund's investments and provides executive and other personnel
for the Fund's management.
Advantus Capital Management, Inc.'s six portfolio managers manage eight
mutual funds containing $215 million in assets in addition to $1.8 billion in
assets for other clients. Advantus Capital's seasoned portfolio managers average
more than 10 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
22
<PAGE>
THIS REPORT HAS BEEN PREPARED FOR SHAREHOLDERS AND MAY BE DISTRIBUTED
TO OTHERS ONLY IF PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS.
[LOGO]
MIMLIC SALES CORPORATION
400 ROBERT STREET NORTH
ST. PAUL, MN 55101-2098
1-800-443-3677
<PAGE>
MIMLIC SALES CORPORATION BULK RATE
400 ROBERT STREET NORTH U.S. POSTAGE PAID
ST. PAUL, MN 55101-2098 ST. PAUL, MN
PERMIT NO. 3547
FORWARDING AND RETURN POSTAGE GUARANTEED,
ADDRESS CORRECTION REQUESTED
F.48638 5-95
