<PAGE>
MIMLIC CASH FUND, INC.
ANNUAL REPORT TO SHAREHOLDERS
SEPTEMBER 30, 1997
<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, 1997 and the related statement of operations
for the year then ended, the statement of changes in net assets for the two
years then ended and the financial highlights for the three years then ended,
the period from November 1, 1993 to September 30, 1994 and for the year ended
October 31, 1993. These financial statements and the financial highlights are
the responsibility of the Fund's management. Our responsibility is to express
an opinion on these financial statements and the financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements and the
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Investment securities held in custody are confirmed
to us by the custodian. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and the financial highlights
referred to above present fairly, in all material respects, the financial
position of the Fund as of September 30, 1997 and the results of its operations,
changes in its net assets and financial highlights, for the periods stated in
the first paragraph above, in conformity with generally accepted accounting
principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
November 7, 1997
<PAGE>
MIMLIC CASH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1997
ASSETS
Investments in securities, at value -
see accompanying schedule for detailed listing
(identified cost: $21,464,463) . . . . . . . . . . . . . . . $ 21,464,463
Cash in bank on demand deposit. . . . . . . . . . . . . . . . . 1,174
Receivable for Fund shares sold . . . . . . . . . . . . . . . . 61,774
-----------
Total assets. . . . . . . . . . . . . . . . . . . . . . . 21,527,411
-----------
LIABILITIES
Payable to Adviser for custodian fees . . . . . . . . . . . . . 672
Payable for Fund shares redeemed. . . . . . . . . . . . . . . . 7,258,468
-----------
Total liabilities . . . . . . . . . . . . . . . . . . . . 7,259,140
-----------
Net assets applicable to outstanding capital stock. . . . . . . $ 14,268,271
-----------
-----------
REPRESENTED BY:
Capital stock - authorized 1 billion shares of $.01
par value; outstanding, 14,268,271 shares. . . . . . . . . $ 142,683
Additional paid-in capital . . . . . . . . . . . . . . . . . 14,125,588
-----------
Total - representing net assets applicable to
outstanding capital stock. . . . . . . . . . . . . . . . $ 14,268,271
-----------
-----------
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, 1997
INVESTMENT INCOME:
Interest.. . . . . . . . . . . . . . . . . . . . . . . . . . $ 732,739
-----------
EXPENSES (NOTE 3):
Custodian fees . . . . . . . . . . . . . . . . . . . . . . . 7,602
Less fees and expenses paid indirectly
through expense offset arrangements . . . . . . . . . . . . (889)
-----------
Total net expenses . . . . . . . . . . . . . . . . . . . . 6,713
-----------
Investment income - net. . . . . . . . . . . . . . . . . . 726,026
-----------
Net increase in net assets resulting from operations. . . . . . $ 726,026
-----------
-----------
See accompanying notes to financial statements.
<PAGE>
MIMLIC CASH FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED SEPTEMBER 30, 1997 AND 1996
1997 1996
------------ -----------
OPERATIONS:
Investment income - net. . . . . . . . . . . . . .$ 726,026 $ 554,589
------------ -----------
Increase in net assets resulting
from operations. . . . . . . . . . . . . . . . 726,026 554,589
------------ -----------
Distributions to shareholders from
net investment income. . . . . . . . . . . . . . . (726,026) (554,589)
------------ -----------
CAPITAL SHARE TRANSACTIONS, AT CONSTANT NET
ASSET VALUE OF $1.00:
Proceeds from sales . . . . . . . . . . . . . . . 106,670,943 74,304,568
Shares issued in reinvestment of net investment
income distributions. . . . . . . . . . . . . . 605,450 553,162
Payments for redemption of shares . . . . . . . . (102,548,778) (76,239,011)
------------ -----------
Increase (decrease) in net assets from
capital share transactions . . . . . . . 4,727,615 (1,381,281)
------------ -----------
Total increase (decrease) in net assets. . 4,727,615 (1,381,281)
Net assets at beginning of year. . . . . . . . . . . 9,540,656 10,921,937
------------ -----------
Net assets at end of year. . . . . . . . . . . . . .$ 14,268,271 $ 9,540,656
------------ -----------
------------ -----------
See accompanying notes to financial statements.
<PAGE>
MIMLIC CASH FUND, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
(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 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 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, 1997, purchases of securities and proceeds
from sales aggregated $102,075,557 and $90,255,456 respectively.
(3) EXPENSES AND RELATED PARTY TRANSACTIONS
The Fund has an investment advisory agreement with Advantus Capital, a
wholly-owned subsidiary of MIMLIC Management. Under the agreement,
Advantus Capital manages the Fund's assets and provides research,
statistical and advisory services and pays related office rental and
executive expenses and salaries. 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, 1997 was $889.
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 11,592,163 shares or
81.2% of the Fund's outstanding shares as of September 30, 1997.
<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,
1993 TO YEAR ENDED
YEAR ENDED SEPTEMBER 30, SEPTEMBER 30, OCTOBER 31,
1997 1996 1995(a) 1994(b) 1993
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income. . . . . . . . . . . . . . . . . . 0.0556 0.0547 0.0571 0.0342 0.0320
---------- ---------- ---------- ---------- ----------
Total from investment operations. . . . . . . . . . . 0.0556 0.0547 0.0571 0.0342 0.0320
---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income . . . . . . . . . . (0.0556) (0.0547) (0.0571) (0.0342) (0.0320)
---------- ---------- ---------- ---------- ----------
Total distributions . . . . . . . . . . . . . . . . . (0.0556) (0.0547) (0.0571) (0.0342) (0.0320)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period . . . . . . . . . . . . . . $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Total return (c) . . . . . . . . . . . . . . . . . . . . . 5.7% 5.6% 5.9% 3.5% 3.3%
Net assets, end of period (in thousands) . . . . . . . . . $14,194 $9,541 $10,922 $12,316 $16,927
Ratio of expenses to average daily
net assets . . . . . . . . . . . . . . . . . . . . . . . 0.07% (e) 0.09% (e) 0.10% (e) 0.08% (d) 0.07%
Ratio of net investment income to
average daily net assets . . . . . . . . . . . . . . . . 5.51% 5.52% 5.71% 3.68% (d) 3.20%
- -----------------------------------------------------------
</TABLE>
(a) Effective March 1, 1995, the Fund entered into a new investment advisory
agreement with Advantus Capital Management, Inc. Prior to March 1, 1995,
the Fund had an investment advisory agreement with MIMLIC Asset Management
Company.
(b) During 1994, the Fund changed its fiscal year end from October 31 to
September 30.
(c) Total return figures are based on a share outstanding throughout the period
and assumes reinvestment of distributions at net asset value. For periods
less than one year, total return presented has not been annualized.
(d) Adjusted to an annual basis.
(e) 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, 1997
(Percentages of each investment category relate to total net assets.)
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE (a)
--------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCIES OBLIGATIONS (14.1%)
$ 1,000,000 Federal National Mortgage Association. . . . . . . . . . . 5.593% 12/22/97 $ 987,591
185,000 Federal Home Loan Bank . . . . . . . . . . . . . . . . . . 5.582% 10/03/97 184,943
825,000 Federal Home Loan Mortgage Corporation . . . . . . . . . . 5.520% 10/15/97 823,257
--------------
Total U.S. government agency obligations (cost: $1,995,791) . . . . . . . . . . . . . . . 1,995,791
--------------
COMMERCIAL PAPER (137.2%)
BASIC MATERIALS (11.4%)
Chemicals (11.4%)
800,000 E.I. Du Pont De Nemours & Company. . . . . . . . . . . . . 5.681% 11/05/97 795,730
450,000 Monsanto Company (c) . . . . . . . . . . . . . . . . . . . 5.663% 12/05/97 445,507
375,000 Monsanto Company (c) . . . . . . . . . . . . . . . . . . . 5.712% 11/12/97 372,576
--------------
1,613,814
--------------
COMMUNICATION SERVICES (17.2%)
Telephone (17.2%)
500,000 AT&T Corporation. . . . . . . . . . . . . . . . . . . . . 5.586% 11/19/97 496,279
500,000 AT&T Corporation. . . . . . . . . . . . . . . . . . . . . 5.680% 11/06/97 497,254
450,000 Bellsouth Telecommunications. . . . . . . . . . . . . . . 5.584% 10/27/97 448,217
1,000,000 SBC Communications. . . . . . . . . . . . . . . . . . . . 5.592% 10/28/97 995,823
--------------
2,437,573
--------------
CONSUMER CYCLICAL (17.2%)
Building Materials (3.9%)
550,000 PPG Industries, Inc . . . . . . . . . . . . . . . . . . . 5.614% 10/29/97 547,641
--------------
Retail (13.3%)
1,000,000 Toys R Us, Inc. . . . . . . . . . . . . . . . . . . . . . 5.593% 10/10/97 998,623
900,000 Wal-Mart Stores . . . . . . . . . . . . . . . . . . . . . 5.564% 11/10/97 894,546
--------------
1,893,169
--------------
CONSUMER STAPLES (22.8%)
Beverage (4.8%)
685,000 Coca-Cola Company . . . . . . . . . . . . . . . . . . . . 5.650% 10/17/97 683,284
--------------
Food (9.8%)
405,000 CPC International (c) . . . . . . . . . . . . . . . . . . 5.511% 11/27/97 401,545
1,000,000 HJ Heinz Company. . . . . . . . . . . . . . . . . . . . . 5.601% 11/07/97 994,354
--------------
1,395,899
--------------
Service (8.2%)
1,010,000 R R Donnelly & Sons Company (c) . . . . . . . . . . . . . 5.620% 11/17/97 1,002,743
155,000 McGraw-Hill Company . . . . . . . . . . . . . . . . . . . 5.657% 12/04/97 153,478
--------------
1,156,221
--------------
FINANCIAL (30.3%)
Auto Finance (5.6%)
800,000 Ford Motor Credit Company . . . . . . . . . . . . . . . . 5.679% 10/31/97 796,232
--------------
Commercial Finance (12.6%)
800,000 General Electric Capital Corporation. . . . . . . . . . . 5.631% 12/01/97 792,542
1,000,000 Xerox Credit. . . . . . . . . . . . . . . . . . . . . . . 5.632% 11/25/97 991,584
--------------
1,784,126
--------------
</TABLE>
See accompanying notes to investments in securities.
<PAGE>
MIMLIC CASH FUND, INC.
INVESTMENTS IN SECURITIES - CONTINUED
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE (a)
FINANCIAL - CONTINUED --------------
<S> <C> <C> <C>
Consumer Finance (12.1%)
830,000 American General Finance Corporation . . . . . . . . . 5.535% 10/22/97 $ 827,329
900,000 Associates Corporation . . . . . . . . . . . . . . . . 5.643% 12/12/97 890,092
--------------
1,717,421
--------------
HEALTH CARE (15.5%)
Drugs (9.2%)
500,000 American Home Products Corporation (c) . . . . . . . . 5.633% 10/09/97 499,375
600,000 Schering Plough Corporation. . . . . . . . . . . . . . 5.611% 11/25/97 594,970
220,000 Schering Plough Corporation. . . . . . . . . . . . . . 5.635% 12/04/97 217,848
--------------
1,312,193
--------------
Medical Product/Supplies (6.3%)
900,000 Abbott Laboratories. . . . . . . . . . . . . . . . . . 5.599% 10/23/97 896,973
--------------
UTILITES (22.8%)
Electric Companies (22.8%)
635,000 Alabama Power Company. . . . . . . . . . . . . . . . . 5.622% 10/09/97 634,208
195,000 Alabama Power Company. . . . . . . . . . . . . . . . . 5.708% 10/07/97 194,815
705,000 Baltimore Gas and Electric Company . . . . . . . . . . 5.627% 11/14/97 700,250
800,000 Madison Gas and Electric . . . . . . . . . . . . . . . 5.613% 10/27/97 796,814
730,000 Midamer Energy . . . . . . . . . . . . . . . . . . . . 5.670% 11/26/97 723,704
185,000 Midamer Energy . . . . . . . . . . . . . . . . . . . . 5.639% 10/24/97 184,335
--------------
3,234,126
--------------
Total commercial paper (cost: $19,468,672). . . . . . . . . . . . . . . . . . . . . . . . . 19,468,672
--------------
Total investments in securitites (cost: $21,464,463) (b). . . . . . . . . . . . . . . . . . $ 21,464,463
--------------
--------------
</TABLE>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in note 1 to the financial
statements.
(b) Also represents the cost of securities for federal income tax purposes at
September 30, 1997.
(c) Commercial paper sold within terms of a private placement memorandum,
exempt from registration under Section 4(2) of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or other
"accredited investors." This security has been determined to be liquid
under guidelines established by the Board of Directors.
