<PAGE>
MIMLIC CASH FUND, INC.
ANNUAL REPORT TO SHAREHOLDERS
SEPTEMBER 30, 1996
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
MIMLIC Cash Fund, Inc.:
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments in securities, of the MIMLIC Cash Fund,
Inc. (the Fund) as of September 30, 1996 and the related statement of operations
for the year then ended, the statement of changes in net assets for the two
years then ended and the financial highlights for the two years then ended, the
period from November 1, 1993 to September 30, 1994 and each of the years in the
two-year period ended October 31, 1993. These financial statements and the
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements and the
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Investment securities held in custody are confirmed
to us by the custodian. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and the financial highlights
referred to above present fairly, in all material respects, the financial
position of the Fund as of September 30, 1996 and the results of its operations,
changes in its net assets and financial highlights, for the periods stated in
the first paragraph above, in conformity with generally accepted accounting
principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
November 1, 1996
<PAGE>
MIMLIC CASH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1996
ASSETS
Investments in securities, at value - see accompanying
schedule for detailed listing (identified cost: $9,644,362. . $9,644,362
Cash in bank on demand deposit . . . . . . . . . . . . . . . . . 11,626
----------
Total assets . . . . . . . . . . . . . . . . . . . . . . . . 9,655,988
----------
LIABILITIES
Payable to Adviser for custodian fees. . . . . . . . . . . . . . 282
Payable for Fund shares repurchased. . . . . . . . . . . . . . . 115,050
----------
Total liabilities. . . . . . . . . . . . . . . . . . . . . . 115,332
----------
Net assets applicable to outstanding capital stock . . . . . . . $9,540,656
----------
----------
REPRESENTED BY:
Capital stock - authorized 1 billion shares of $.01
par value; outstanding, 9,540,656 shares . . . . . . . . . . $95,406
Additional paid-in capital . . . . . . . . . . . . . . . . . . 9,445,250
----------
Total - representing net assets applicable to
outstanding capital stock. . . . . . . . . . . . . . . . . $9,540,656
----------
----------
Net asset value per share of outstanding capital stock . . . . . $1.00
----------
----------
See accompanying notes to financial statements.
<PAGE>
MIMLIC CASH FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED SEPTEMBER 30, 1996
INVESTMENT INCOME:
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . $562,385
----------
EXPENSES (NOTE 3):
Custodian fees . . . . . . . . . . . . . . . . . . . . . . . . 9,330
Less fees and expenses paid indirectly through expense . . . . (1,534)
----------
Total net expenses . . . . . . . . . . . . . . . . . . . . . 7,796
----------
Investment income - net. . . . . . . . . . . . . . . . . . . 554,589
----------
Net increase in net assets resulting from operations . . . . . . $554,589
----------
----------
See accompanying notes to financial statements.
<PAGE>
MIMLIC CASH FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
1996 1995
----------- ----------
<S> <C> <C>
OPERATIONS:
Investment income - net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $554,589 $628,239
----------- ----------
Increase in net assets resulting from operations . . . . . . . . . . . . . . . 554,589 628,239
----------- ----------
Distributions to shareholders from net investment income . . . . . . . . . . . . . . (554,589) (628,239)
----------- ----------
CAPITAL SHARE TRANSACTIONS, AT CONSTANT NET ASSET VALUE OF $1.00:
Proceeds from sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,304,568 82,208,336
Shares issued in reinvestment of net investment
income distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 553,162 626,208
Payments for redemption of shares. . . . . . . . . . . . . . . . . . . . . . . . . (76,239,011) (84,228,936)
----------- ----------
Decrease in net assets from
capital share transactions . . . . . . . . . . . . . . . . . . . . . . . . . (1,381,281) (1,394,392)
----------- ----------
Total decrease in net assets . . . . . . . . . . . . . . . . . . . . . . . . . (1,381,281) (1,394,392)
----------- ----------
Net assets at beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . . 10,921,937 12,316,329
----------- ----------
Net assets at end of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,540,656 $10,921,937
----------- ----------
----------- ----------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
MIMLIC CASH FUND, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MIMLIC Cash Fund, Inc. (the Fund) is registered under the Investment
Company Act of 1940 (as amended) as a diversified, open-end management
investment company. Shares of the Fund are presently sold only to the
advisory clients of Advantus Capital Management, Inc. (Advantus Capital or
the Adviser), MIMLIC Asset Management Company (MIMLIC Management) and other
affiliated investment advisers.
The significant accounting policies followed by the Fund are summarized as
follows:
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in
net assets resulting from operations during the period. Actual results
could differ from those estimates.
INVESTMENTS IN SECURITIES
All securities are valued at the close of each business day. Pursuant to
Rule 2a-7 of the Investment Company Act of 1940 (as amended), all
securities are valued at amortized cost, which approximates market value,
in order to maintain a constant net asset value of $1.00.
Security transactions are accounted for on the date the securities are
purchased or sold. Interest income, including amortization of premium and
discount computed on a level-yield basis, is accrued daily.
FEDERAL TAXES
The Fund intends 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 and net realized gains (losses) may differ for
financial statement and tax purposes due to 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 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.
<PAGE>
2
MIMLIC CASH FUND, INC.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders from net investment income are declared daily
and paid monthly. Such distributions are payable in cash or reinvested in
additional shares of the Fund's capital stock.
(2) INVESTMENT SECURITY TRANSACTIONS
For the year ended September 30, 1996, purchases of securities and proceeds
from sales aggregated $60,874,113 and $62,141,613, respectively.
(3) 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.
Advantus Capital is a wholly-owned subsidiary of 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. Because shares of the Fund are
purchased only with funds managed by Advantus Capital, MIMLIC Management
and other affiliated investment advisers for advisory clients, the Fund
does not pay an advisory fee to Advantus Capital.
Advantus Capital pays all expenses of the Fund except custodian fees.
Advantus Capital directly incurs and pays the Fund's custodian fees and the
Fund in turn reimburses Advantus Capital.
The Fund has a compensating balance arrangement with its custodian where
custodian fees are reduced by interest credits earned on cash balances
maintained with the custodian. The total amount of interest credits earned
for the year ended September 30, 1996 was $1,534.
The Minnesota Mutual Life Insurance Company (Minnesota Mutual), the parent
of MIMLIC Management, acts as the Fund's transfer agent, dividend
disbursing agent and redemption agent. Minnesota Mutual receives no fees
from the Fund for these services.
Minnesota Mutual and subsidiaries, as a whole, owned 7,001,783 shares or
73.4% of the Fund's outstanding shares as of September 30, 1996.
<PAGE>
3
MIMLIC CASH FUND, INC.
Notes to Financial Statements - Continued
(4)Per share data for a share of capital stock outstanding during the period and
selected information for each period is as follows:
<TABLE>
<CAPTION>
FOR THE
PERIOD FROM
NOVEMBER 1,
YEAR ENDED SEPTEMBER 30, 1993 TO YEAR ENDED OCTOBER 31,
------------------------ SEPTEMBER 30, ----------------------
1996 1995 (A) 1994 (B) 1993 1992
------- -------- --------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of . . . . . . . . . $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- -------
Income from investment operations:
Net investment income. . . . . . . . . . . . . 0.0547 0.0571 0.0342 0.0320 0.0402
------- ------- ------- ------- -------
Total from investment operations . . . . . . 0.0547 0.0571 0.0342 0.0320 0.0402
------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income . . . . . (0.0547) (0.0571) (0.0342) (0.0320) (0.0402)
------- ------- ------- ------- -------
Total distributions. . . . . . . . . . . . . (0.0547) (0.0571) (0.0342) (0.0320) (0.0402)
------- ------- ------- ------- -------
Net asset value, end of period. . . . . . . . . $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Total return (c). . . . . . . . . . . . . . . . 5.60% 5.87% 3.49%(d) 3.25% 4.10%
Net assets, end of period (in thousands). . . . $9,541 $10,922 $12,316 $16,927 $21,047
Ratio of expenses to average daily
net assets . . . . . . . . . . . . . . . . . . 0.09%(f) 0.10%(f) 0.08%(e) 0.07% 0.06%
Ratio of net investment income to
average daily net assets . . . . . . . . . . . 5.52% 5.71% 3.68%(e) 3.20% 4.12%
</TABLE>
- --------------------------------------------------
(a) Effective March 1, 1995, the Fund entered into a new investment
advisory agreement with Advantus Capital Management, Inc. Prior to
March 1, 1995, the Fund had an investment advisory agreement with
MIMLIC Asset Management Company.
(b) During 1994, the Fund changed its fiscal year end from October 31 to
September 30.
(c) Total return figures are based on a share outstanding throughout the
period and assumes reinvestment of distributions at net asset value.
(d) Total return is presented for the eleven-month period from November 1,
1993 to September 30, 1994.
(e) Adjusted to an annual basis.
(f) Effective fiscal year 1995, the ratio of expenses to average daily net
assets is based on total expenses of the Fund before reduction of
interest credits earned on cash balances.
<PAGE>
MIMLIC CASH FUND, INC.
INVESTMENTS IN SECURITIES
SEPTEMBER 30, 1996
(Percentages of each investment category relate to total net assets.)
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE (a)
--------- ---------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES OBLIGATIONS (10.1%)
$390,000 Farm Credit Discount Note. . . . . . . . . . . . . . . . . . . 5.42% 11/25/96 $386,791
475,000 Federal Home Loan Mortgage Discount Note . . . . . . . . . . . 5.44% 12/16/96 469,615
110,000 Federal National Mortgage Association Discount Note. . . . . . 5.41% 11/27/96 109,064
---------
Total U.S. government agencies obligations (cost: $965,470). . . . . . . . . . . . . . . . . . . 965,470
---------
COMMERCIAL PAPER (91.0%)
CAPITAL GOODS (1.5%)
Information Processing (1.5%)
145,000 Hewlett Packard. . . . . . . . . . . . . . . . . . . . . . . . 5.56% 10/09/96 144,804
---------
BASIC INDUSTRIES (4.3%)
Chemicals (4.3%)
410,000 Dupont . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.42% - 5.5 11/18/96 407,016
---------
CONSUMER STAPLES (45.7%)
Drugs (2.9%)
275,000 American Home Products (c) . . . . . . . . . . . . . . . . . . 5.44% 10/09/96 274,634
---------
Entertainment (5.4%)
520,000 Walt Disney. . . . . . . . . . . . . . . . . . . . . . . . . . 5.63% 01/06/97 512,271
---------
Food (17.6%)
520,000 Anheuser-Busch . . . . . . . . . . . . . . . . . . . . . . . . 5.40% 12/17/96 514,074
150,000 Cargill Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 5.53% 10/21/96 149,529
160,000 Cargill Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 5.41% 10/21/96 159,504
505,000 Coca Cola Company. . . . . . . . . . . . . . . . . . . . . . . 5.47% 12/13/96 499,478
360,000 CPC International Inc (c). . . . . . . . . . . . . . . . . . . 5.42% 11/20/96 357,307
---------
1,679,892
---------
Management (3.9%)
370,000 PHH Corporation. . . . . . . . . . . . . . . . . . . . . . . . 5.40% 10/31/96 368,311
---------
Media (2.6%)
245,000 McGraw-Hill Company. . . . . . . . . . . . . . . . . . . . . . 5.60% 10/08/96 244,703
---------
Printing and Publishing (4.4%)
425,000 Donnelly and Sons Company. . . . . . . . . . . . . . . . . . . 5.45% 11/04/96 422,802
---------
Retail (4.2%)
405,000 Toys R Us, Inc.. . . . . . . . . . . . . . . . . . . . . . . . 5.42% 10/10/96 404,402
---------
Tobacco (4.7%)
455,000 Phillip Morris . . . . . . . . . . . . . . . . . . . . . . . . 5.53% 10/22/96 453,504
---------
See accompanying notes to investments in securities.
<PAGE>
MIMLIC CASH FUND, INC.
INVESTMENTS IN SECURITIES - CONTINUED
MARKET
PRINCIPAL VALUE (a)
--------- ----------
<S> <C> <C>
ENERGY (8.9%)
Natural Gas (8.9%)
$380,000 Laclede Gas Company. . . . . . . . . . . . . . . . . . . . . . 5.52% 11/13/96 $377,492
475,000 Northern Illinois Gas. . . . . . . . . . . . . . . . . . . . . 5.50% 11/14/96 471,812
----------
849,304
----------
FINANCIAL (19.5%)
Auto Finance (4.3%)
415,000 Ford Motor Credit. . . . . . . . . . . . . . . . . . . . . . . 5.55% 10/03/96 414,813
----------
Consumer Finance (7.7%)
370,000 American General Finance . . . . . . . . . . . . . . . . . . . 5.53% 10/02/96 369,889
360,000 Associates Corporation . . . . . . . . . . . . . . . . . . . . 5.38% 10/07/96 359,631
----------
729,520
----------
Commercial Finance (7.5%)
360,000 Ciesco Limited Partnership . . . . . . . . . . . . . . . . . . 5.54% 10/01/96 359,946
360,000 GE Capital Corporation . . . . . . . . . . . . . . . . . . . . 5.41% 10/16/96 359,154
----------
719,100
----------
UTILITIES (11.1%)
Electric (4.8%)
455,000 Baltimore Gas & Electric . . . . . . . . . . . . . . . . . . . 5.51% 11/12/96 452,076
----------
Telephones (6.3%)
155,000 AT&T Corporation . . . . . . . . . . . . . . . . . . . . . . . 5.47% 01/13/97 152,600
210,000 AT&T Corporation . . . . . . . . . . . . . . . . . . . . . . . 5.56% 10/15/96 209,526
240,000 Bellsouth Telephone. . . . . . . . . . . . . . . . . . . . . . 5.38% 10/11/96 239,614
----------
601,740
----------
Total commercial paper (cost: $8,678,892) . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,678,892
----------
Total investments in securities (cost: $9,644,362) (b) . . . . . . . . . . . . . . . . . . . . $9,644,362
----------
----------
</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, 1996.
(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 guidelin established by the Board of Directors.
