<PAGE>
MIMLIC CASH FUND, INC.
ANNUAL REPORT TO SHAREHOLDERS
SEPTEMBER 30, 1998
<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, 1998 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 four 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, 1998 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 6, 1998
<PAGE>
MIMLIC CASH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Investments in securities, at value - see accompanying
schedule for detailed listing (identified cost: $9,193,048) .. $9,193,048
Cash in bank on demand deposit .................................... 11,749
Accrued interest receivable ....................................... 1,853
----------
Total assets ............................................. 9,206,650
----------
LIABILITIES
Payable to Adviser for custodian fees ............................. 630
Payable for Fund shares redeemed .................................. 46,094
----------
Total liabilities ........................................ 46,724
----------
Net assets applicable to outstanding capital stock ................ $9,159,926
----------
----------
REPRESENTED BY:
Capital stock - authorized 1 billion shares of $.01
par value; outstanding, 9,159,926 shares ................. $ 91,599
Additional paid-in capital ................................... 9,068,327
----------
Total - representing net assets applicable to
outstanding capital stock ............................ $9,159,926
----------
----------
Net asset value per share of outstanding capital stock ............ $ 1.00
----------
----------
</TABLE>
See accompanying note to financial statements.
<PAGE>
MIMLIC CASH FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C>
Interest .................................................. $ 845,812
---------
EXPENSES (NOTE 3):
Custodian fees ............................................ 10,393
Less fees and expenses paid indirectly through
expense offset arrangements ........................... (2,728)
---------
Total net expenses .................................... 7,665
---------
Investment income - net ............................... 838,147
---------
Net increase in net assets resulting from operations ........... $ 838,147
---------
---------
</TABLE>
See accompanying note to financial statements.
<PAGE>
MIMLIC CASH FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED SEPTEMBER 30, 1998 AND 1997
<TABLE>
<CAPTION>
1998 1997
------------- -------------
<S> <C> <C>
OPERATIONS:
Investment income - net .................................... $ 838,147 $ 726,026
------------- -------------
Increase in net assets resulting from operations ... 838,147 726,026
------------- -------------
Distributions to shareholders from net investment income ........ (838,147) (726,026)
------------- -------------
CAPITAL SHARE TRANSACTIONS, AT CONSTANT NET ASSET VALUE OF $1.00:
Proceeds from sales ........................................ 157,017,696 106,670,943
Shares issued in reinvestment of net investment
income distributions ................................... 838,000 605,450
Payments for redemption of shares .......................... (162,964,041) (102,548,778)
------------- -------------
Increase (decrease) in net assets from
capital share transactions ..................... (5,108,345) 4,727,615
------------- -------------
Total increase (decrease) in net assets ............ (5,108,345) 4,727,615
Net assets at beginning of year ................................. 14,268,271 9,540,656
------------- -------------
Net assets at end of year ....................................... $ 9,159,926 $ 14,268,271
------------- -------------
------------- -------------
</TABLE>
See accompanying note to financial statements.
<PAGE>
MIMLIC CASH FUND, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1998
(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) 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 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.
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 period ended September 30, 1998, purchases of securities and
proceeds from sales aggregated $137,657,072 and $149,928,487, respectively.
(3) EXPENSES AND RELATED PARTY TRANSACTIONS
The Fund has an investment advisory agreement with Advantus Capital. 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 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, 1998 was $2,728.
Minnesota Life Insurance Company (Minnesota Life), (formerly known as The
Minnesota Mutual Life Insurance Company), the parent of Advantus Capital,
acts as the Fund's transfer agent, dividend disbursing agent and redemption
agent. Minnesota Life receives no fees from the Fund for these services.
Effective October 26, 1998, the Fund's transfer agent is First Data
Investor Services Group, Inc.
Minnesota Life and subsidiaries, as a whole, owned 3,906,058 shares or
42.6% of the Fund's outstanding shares as of September 30, 1998.
<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
---------------------------------------------- SEPTEMBER 30, OCTOBER 31,
1998 1997 1996 1995 (a) 1994 (b) 1993
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income............................... 0.0575 0.0556 0.0547 0.0571 0.0342 0.0320
------ ------ ------ ------ ------ ------
Total from investment operations............... 0.0575 0.0556 0.0547 0.0571 0.0342 0.0320
------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income................ (0.0575) (0.0556) (0.0547) (0.0571) (0.0342) (0.0320)
------- ------- ------- ------- ------- -------
Total distributions............................ (0.0575) (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 $1.0000
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Total return (c)....................................... 5.90% 5.70% 5.60% 5.87% 3.49% 3.25%
Net assets, end of period (in thousands)............... $9,160 $14,194 $9,541 $10,922 $12,316 $16,927
Ratio of expenses to average daily
net assets.......................................... 0.05% 0.07% 0.09% 0.10% 0.08% 0.07%
Ratio of net investment income to
average daily net assets............................ 5.55% 5.51% 5.52% 5.71% 3.68% 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, 1998
(Percentages of each investment category relate to total net assets.)
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE (a)
------------------- -----------
<S> <C> <C> <C>
COMMERCIAL PAPER (97.2%)
BASIC MATERIALS (9.1%)
Agriculture Product (9.1%)
$845,000 Archer Daniels ............................................... 5.481% 01/13/99 832,007
-----------
CAPITAL GOODS (4.3%)
Electrical Equipment (4.3%)
390,000 Emerson Electric Company ................... 5.583% 10/08/98 389,583
-----------
CONSUMER CYCLICAL (13.0%)
Publishing (13.0%)
535,000 McGraw-Hill, Inc............................ 5.638% 11/13/98 531,470
670,000 Tribune Company ............................ 5.475% 12/08/98 663,235
-----------
1,194,705
-----------
CONSUMER STAPLES (16.3%)
Beverage (7.9%)
450,000 Coca-Cola Company .......................... 5.611% 10/30/98 448,003
275,000 Coca-Cola Company .......................... 5.593% 11/24/98 272,743
-----------
720,746
-----------
Entertainment (8.4%)
305,000 Walt Disney ................................ 5.635% 10/20/98 304,108
465,000 Walt Disney ................................ 5.662% 11/06/98 462,418
-----------
766,526
-----------
FINANCIAL (36.6%)
Auto Finance (5.0%)
464,000 Ford Motor Credit .......................... 5.661% 02/12/99 454,553
-----------
Banks (7.6%)
709,000 Norwest Financial .......................... 5.545% 01/22/99 697,033
-----------
Consumer Finance (14.9%)
270,000 GE Capital Corporation ..................... 5.746% 10/26/98 268,942
220,000 Associates Corporation of North America .... 5.653% 11/19/98 218,342
880,000 Ciesco LP .................................. 5.630% 11/18/98 873,532
-----------
1,360,816
-----------
Finance-Diversified (9.1%)
849,000 American General Corporation ............... 5.605% 12/24/98 838,188
-----------
TECHNOLOGY (11.2%)
Technology (11.2%)
200,000 Motorola, Inc............................... 5.638% 10/22/98 199,353
833,000 Motorola, Inc............................... 5.643% 11/20/98 826,610
-----------
1,025,963
-----------
UTILITES (6.8%)
Natural Gas (6.8%)
160,000 Con Natural Gas ............................ 5.608% 10/13/98 159,706
470,000 Nicor Incorporated ......................... 5.587% 11/02/98 467,709
-----------
627,415
-----------
-----------
Total commercial paper (cost: $8,907,535) .. 8,907,535
-----------
-----------
See accompanying notes to investments in securities.
<PAGE>
<CAPTION>
MIMLIC CASH FUND, INC.
INVESTMENTS IN SECURITIES - CONTINUED
MARKET
PRINCIPAL VALUE (a)
------------------- -----------
<S> <C>
SHORT-TERM SECURITIES (3.1%)
$ 285,513 Federated Prime Obligation Fund, current rate - 5.470%................................ 285,513
-----------
Total short-term securities (cost: $285,513).......................................... 285,513
-----------
Total investments in securities (cost: $9,193,048) (b)................................ $ 9,193,048
------------
------------
</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, 1998.
