<PAGE>
MIMLIC CASH FUND, INC.
SEMI-ANNUAL REPORT TO SHAREHOLDERS
MARCH 31, 1999
<PAGE>
MIMLIC CASH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1999
(UNAUDITED)
ASSETS
Investments in securities, at value - see accompanying
schedule for detailed listing (identified cost: $7,821,891).. $ 7,821,891
Cash in bank on demand deposit ................................ 83,374
Receivable for Fund shares sold................................ 1,534,166
Accrued interest receivable ................................... 1,409
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Total assets............................................... 9,440,840
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LIABILITIES
Payable to Adviser for custodian fees........................... 424
Payable for Fund shares redeemed................................ 164,665
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Total liabilities.......................................... 165,089
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Net assets applicable to outstanding capital stock.............. $ 9,275,751
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REPRESENTED BY:
Capital stock - authorized 1 billion shares of $.01
par value; outstanding, 9,275,751 shares................... $ 92,758
Additional paid-in capital.................................... 9,182,993
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Total - representing net assets applicable to
outstanding capital stock................................ $ 9,275,751
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Net asset value per share of outstanding capital stock.......... $ 1.00
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See accompanying notes to financial statements.
<PAGE>
MIMLIC CASH FUND, INC.
STATEMENT OF OPERATIONS
PERIOD FROM OCTOBER 1, 1998 TO MARCH 31, 1999
(UNAUDITED)
INVESTMENT INCOME
Interest.................................................... $ 307,117
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EXPENSES (NOTE 3):
Custodian fees.............................................. 3,822
Less fees and expenses paid indirectly through expense
offset arrangements....................................... -
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Total net expenses...................................... 3,822
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Investment income - net................................. 303,295
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Net increase in net assets resulting from operations........... $ 303,295
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See accompanying notes to financial statements.
<PAGE>
MIMLIC CASH FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
PERIOD FROM OCTOBER 1, 1998 TO MARCH 31, 1999 AND
THE YEAR ENDED SEPTEMBER 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
---------------- ------------------
OPERATIONS:
<S> <C> <C>
Investment income - net.......................................................... $ 303,295 $ 838,147
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Increase in net assets resulting from operations.......................... 303,295 838,147
---------------- ------------------
Distributions to shareholders from net investment income............................. (303,295) (838,147)
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CAPITAL SHARE TRANSACTIONS, AT CONSTANT NET ASSET VALUE OF $1.00:
Proceeds from sales................................................................ 40,341,581 157,017,696
Shares issued in reinvestment of net investment
income distributions............................................................. 299,124 838,000
Payments for redemption of shares.................................................. (40,524,880) (162,964,041)
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Increase (decrease) in net assets from
capital share transactions.................................................. 115,825 (5,108,345)
---------------- ------------------
Total increase (decrease) in net assets....................................... 115,825 (5,108,345)
Net assets at beginning of period.................................................... 9,159,926 14,268,271
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Net assets at end of period.......................................................... $ 9,275,751 $ 9,159,926
---------------- ------------------
---------------- ------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
MIMLIC CASH FUND, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999
(UNAUDITED)
(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 March 31, 1999, purchases of securities and
proceeds from sales aggregated $55,124,060 and $56,495,217,
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 period ended March 31, 1999 was $0.
Effective October 26, 1998, the Fund entered into a new shareholder and
administrative services agreement with Minnesota Life Insurance Company
(Minnesota Life), (formerly The Minnesota Mutual Life Insurance
Company), the parent of Advantus Capital. Under this agreement, the
Adviser will pay Minnesota Life a monthly administrative services fee
as agreed by the Adviser and Minnesota Life for accounting, auditing,
legal and other administrative services which Minnesota Life provides.
For shareholder services performed by Minnesota Life, the Adviser will
pay Minnesota Life an annual account servicing fee as agreed by the
Adviser and Minnesota Life. First Data Investor Services Group, Inc.
acts as the Fund's transfer agent, dividend disbursing agent and
redemption agent. Prior to October 26, 1998, Minnesota Life was the
Fund's transfer agent.
Minnesota Life and subsidiaries, as a whole, owned 9,251,449 shares or
99.7% of the Fund's outstanding shares as of March 31, 1999.
<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 FOR THE
PERIOD FROM PERIOD FROM
OCTOBER 1, NOVEMBER 1,
1998 TO YEAR ENDED SEPTEMBER 30, 1993 TO YEAR ENDED
MARCH 31, ---------------------------------------- SEPTEMBER 30, OCTOBER 31,
1999 1998 1997 1996 1995(a) 1994(b) 1993
-------- -------- --------- -------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
-------- -------- --------- -------- --------- --------- ----------
Income from investment operations:
Net investment income...................... 0.0210 0.0575 0.0556 0.0547 0.0571 0.0342 0.0320
-------- -------- --------- -------- --------- --------- ----------
Total from investment operations.... 0.0210 0.0575 0.0556 0.0547 0.0571 0.0342 0.0320
-------- -------- --------- -------- --------- --------- ----------
Less distributions:
Dividends from net investment income....... (0.0210) (0.0575) (0.0556) (0.0547) (0.0571) (0.0342) (0.0320)
-------- -------- --------- -------- --------- --------- ----------
Total distributions................ (0.0210) (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 $1.0000
-------- -------- --------- -------- --------- --------- ---------
-------- -------- --------- -------- --------- --------- ---------
Total return (c).......................... 2.37% 5.90% 5.70% 5.60% 5.87% 3.49% 3.25%
Net assets, end of period (in thousands).. $9,276 $9,160 $14,194 $9,541 $10,922 $12,316 $16,927
Ratio of expenses to
average daily net assets ................. 0.06%(d)(e) 0.05%(e) 0.07%(c) 0.09%(c) 0.10%(e) 0.08%(d) 0.07%
Ratio of net investment income to
average daily net assets ................. 4.71%(d) 5.55% 5.51% 5.52% 5.71% 3.68%(d) 3.20%
</TABLE>
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(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 assume 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>
<TABLE>
<CAPTION>
MIMLIC CASH FUND, INC.
INVESTMENTS IN SECURITIES
MARCH 31, 1999
(UNAUDITIED)
(Percentages of each investment category relate to total net assets.)
MARKET
PRINCIPAL VALUE (a)
------------------ -----------------
<S> <C> <C> <C>
COMMERCIAL PAPER (83.8%)
BASIC MATERIALS (25.8%)
Agriculture Product (13.4%)
$ 205,000 Archer-Daniels Midland Company....................... 4.926% 04/09/99 $ 204,779
505,000 Archer-Daniels Midland Company....................... 4.923% 06/08/99 500,411
167,000 Cargill, Inc......................................... 4.928% 05/14/99 166,036
375,000 Cargill, Inc......................................... 4.933% 05/20/99 372,532
-----------------
1,243,758
-----------------
Chemicals (12.4%)
535,000 E.I. DuPont de Nemours & Company..................... 4.860% 07/29/99 526,654
630,000 Monsanto Company (c)................................. 4.914% 06/22/99 623,122
-----------------
1,149,776
-----------------
COMMUNICATION SERVICES (13.4%)
Telephone (13.4%)
235,000 Bellsouth Telecommunications......................... 4.916% 04/14/99 234,589
255,000 Bellsouth Telecommunications......................... 4.889% 04/27/99 254,115
160,000 GTE Funding.......................................... 4.920% 04/05/99 159,914
595,000 SBC Communications (c)............................... 4.907% 04/22/99 593,325
-----------------
1,241,943
-----------------
CONSUMER CYCLICAL (2.6%)
Publishing (2.6%)
240,000 McGraw-Hill, Inc.................................... 4.946% 05/11/99 238,706
-----------------
CONSUMER STAPLES (11.4%)
Beverage (4.9%)
450,000 Coca-Cola Enterprises................................ 4.874% 04/12/99 449,340
-----------------
Entertainment (6.5%)
615,000 Walt Disney Company.................................. 4.871% 07/28/99 605,465
-----------------
FINANCIAL (18.4%)
Auto Finance (5.0%)
470,000 General Motors Acceptance Corporation................ 4.564% 04/29/99 468,360
-----------------
Consumer Finance (13.4%)
745,000 Associates Corporation of North America.............. 4.944% 06/04/99 738,598
505,000 Ciesco LP............................................ 4.932% 04/19/99 503,774
-----------------
1,242,372
-----------------
HEALTH CARE (3.8%)
Drugs (3.8%)
355,000 American Home Products Corporation (c)............... 4.912% 05/05/99 353,383
-----------------
UTILITES (8.4%)
Electric Companies (8.4%)
185,000 Florida Power........................................ 5.033% 04/16/99 184,618
255,000 MidAmerican Energy................................... 4.968% 05/07/99 253,757
340,000 MidAmerican Energy................................... 4.952% 04/07/99 339,723
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778,098
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Total commerical paper (cost: $7,771,201)................................ 7,771,202
-----------------
</TABLE>
See accompanying notes to investments in securities.
<PAGE>
MIMLIC CASH FUND, INC.
INVESTMENTS IN SECURITIES - CONTINUED
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE (a)
------------------ -----------------
<S> <C>
SHORT-TERM SECURITIES (.5%)
$ 50,690 Federated Prime Obligation Fund, current rate 4.860%........... $ 50,690
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Total short-term securities (cost: $50,690).................... 50,690
-----------------
Total investments in securities (cost: $7,821,891) (b)......... $ 7,821,892
-----------------
-----------------
</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 March 31, 1999.
(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.
