<PAGE>
[LOGO]
ADVANTUS
FAMILY OF FUNDS
ANNUAL REPORT TO SHAREHOLDERS
ADVANTUS BOND FUND
SEPTEMBER 30, 1995
<PAGE>
ADVANTUS BOND FUND
TABLE OF CONTENTS
PERFORMANCE UPDATE 2
INVESTMENTS IN SECURITIES 7
STATEMENT OF ASSETS AND
LIABILITIES 10
STATEMENT OF OPERATIONS 11
STATEMENT OF CHANGES IN
NET ASSETS 12
NOTES TO FINANCIAL
STATEMENTS 13
INDEPENDENT AUDITORS'
REPORT 19
FEDERAL INCOME TAX
INFORMATION 20
SHAREHOLDER SERVICES 22
<PAGE>
October 31, 1995
[PHOTO]
Dear Shareholders:
The first nine months of 1995 produced exceptional returns for both stock and
bond investors. Subdued inflation and a growing economy combined to create a
positive secular environment for financial assets.
A 140 basis point reduction in the 30-year Treasury Bond produced a 21 percent
return since the beginning of the year. Corporate bonds returned 16.5 percent
according to the Lehman Corporate Bond Index. If this pace continues, the bond
market will finish off one of its best years ever - a sharp reversal from 1994.
Investors reacted strongly to every actual and perceived economic shift creating
unusual volatility in the bond market. The sharp sell off in July and August was
just such an over reaction. Long term yields will be driven by continuing
concerns about the budget process in Washington, the near term direction of the
economy and the dollar's performance. Nonetheless, we expect Treasury Bills to
remain trading in the 6-7 percent range.
Technology, financial and consumer companies drove the stock market to all-time
record highs in the third quarter as measured by the S&P 500. While this
produced spectacular results, the extended run may create additional
vulnerability in the market. The chief concerns are disappointing earnings
announcements and a general slow down in profitability. According to Ibbotson
Associates, there have only been four times since 1927 that stock prices have
risen more in the first nine months of the year. In each instance, the market
cooled off in the final quarter. Factors which could push the market up in the
short term, however, are a significant interest rate reduction or a surge in
foreign portfolio inflows.
The current economic expansion is displaying the mixed signals of maturation.
However, we do not expect an early end to the recovery. The economy's recent
slow growth pattern should lengthen the life of the expansion by reducing
inflationary pressures and consequently, the need for money tightening measures.
It is unlikely that the economy will regain the robust pace of the early stages
of the expansion.
The market does hold opportunity for investors. Diversification across
industries and geographic regions remains a key element to successful investing.
However, determining which investments will benefit in both the near and long
term requires professional experience. Advantus Capital Management, Inc. offers
a family of eight funds which are designed to help you reach your goals with a
thoughtful, well conceived investment strategy.
Sincerely,
Paul Gooding, President
Advantus Capital Management, Inc.
<PAGE>
ADVANTUS BOND FUND
PERFORMANCE UPDATE
[PHOTO]
WAYNE SCHMIDT, CFA
PORTFOLIO MANAGER
The Advantus Bond Fund is a mutual fund
designed for investors seeking a high
level of current income consistent with
prudent investment risk. The Fund plans
to achieve its objective primarily by
investing in a diversified portfolio of
investment grade short, intermediate and
long-term debt securities. The Fund
manager varies the proportion of assets
invested in each maturity category
depending upon the evaluation of market
patterns and economic trends by the
Fund's investment adviser.
-Dividends declared daily and paid monthly.
-Capital gains distributions paid annually.
PERFORMANCE
The Advantus Bond Fund's performance for the year ended September 30, 1995 for
each class of shares offered was as follows:
<TABLE>
<S> <C>
Class A 15.1 percent*
Class B 13.9 percent*
Class C (since 3/1/95
inception) 9.3 percent*
</TABLE>
The Lehman Brothers Corporate Bond Index** returned 16.99 percent for the year
ending September 30, 1995. Our peer group, the Lipper A-rated Bond Fund
Universe,+ returned 13.80 percent over the same period.
It was an excellent year for fixed income investors. The 1994 bear market was
replaced with the 1995 bull market. The bond market rally of 1995 continues to
be fueled by low inflation, moderate economic growth and weaker than expected
employment data. Corporate bonds and U.S. Treasury securities continued to
perform very well, especially the longer maturities with call protection.
Interest rates, which moved dramatically lower during the past 12 months,
finished the period near their lows for the year. The 30 year U.S. Treasury Bond
yield decreased 131 basis points to 6.50 percent, while rates on intermediate
notes were 75 to 150 basis points lower.
PORTFOLIO RECAP
During the year, we ran the duration of the portfolio between 6 years and 6.7
years, in line with the Lehman Brothers Corporate Bond Index duration of 6.4
years. Owning enough duration (i.e. longer maturity bonds) allowed the portfolio
to participate in this year's market rally. Throughout the year, we stayed
overweighted with 10 and 30 year maturities and underweighted at the shorter
maturities. The added duration benefited the Fund's return during the year as
interest rates at the longer end of the yield curve moved significantly lower.
We maintained our emphasis on investment grade corporate bonds with longer
maturities. This sector performed extremely well as interest rates declined and
credit spreads tightened. Finding value within the corporate sector is becoming
more difficult but our focus continues to be owning the best relative value
within this sector. We added, and continue to hold our positions in News America
Corp. (credit rating upgraded twice during the year), Time Warner, Royal
Caribbean, Overseas Shipholding, Joy Technologies, CSR Finance Ltd, Comsat, and
Commonwealth Edison. We
2
<PAGE>
ADVANTUS BOND FUND
SEPTEMBER 30, 1995
captured gains by selling Black and Decker, Lyondell Petrochemical, Carter Holt
Harvey, Methanex, Shopko, Greentree Financial, and United Dominion. The
corporate names in the portfolio played an important role in the Fund's
performance to date. We expect their future credit spreads to be stable or
tighter as the earnings and company fundamentals improve. The corporate bonds
add valuable additional yield to the portfolio and provide the opportunity for
capital gains as credit spreads tighten.
In keeping with our emphasis on quality, the portfolio currently has an average
quality rating of A1. At September 30, 1995, 66 percent of the portfolio was
invested in investment grade corporate bonds, 20 percent in U.S. Government and
agencies securities, 9 percent in mortgage backed securities and the remaining 5
percent cash was invested in money market instruments.
OUTLOOK
Bonds have posted strong gains in 1995 and the economic fundamentals are still
positive for the fixed income market. Moderate economic growth and low inflation
continue to provide a positive backdrop for bonds. While it is unlikely that
bonds can continue appreciating at this pace, they still offer fair value and
have not yet fully discounted the shift in economic conditions.
Over the next six months, we will likely see modest economic growth with low
inflation, a perfect scenario for a stable bond market. The Federal Reserve
should cautiously move short term interest rates lower as the economic
conditions dictate. If Washington can produce a creditable deficit reduction
package, the Federal Reserve can cut short term rates and long term rates would
follow them lower. With our focus on undervalued corporate bonds and longer
duration, the portfolio is well positioned to participate in this environment.
*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.
**The Lehman Brothers Corporate Bond Index includes all publicly issued, fixed
rate, nonconvertible investment grade dollar-denominated, SEC registered
corporate debt.
+Average return of 99 A-rated bond funds according to Lipper Analytical
Services, Inc.
3
<PAGE>
ADVANTUS BOND FUND
SEPTEMBER 30, 1995
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL
$10,000 INVESTMENT IN ADVANTUS BOND FUND, LEHMAN BROTHER'S
CORPORATE BOND INDEX AND CONSUMER PRICE INDEX
CLASS A
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL
RETURN:
<S> <C> <C> <C>
One year 9.9%
Five year 8.4%
Since inception (8/14/87) 7.9%
Class A Lehman Brother's Index CPI
8/14/87 10,000 10,000 10,000
10/31/87 9,621 10,014 10,083
10/31/88 10,246 11,343 10,512
10/31/89 11,359 12,751 10,994
10/31/90 11,865 13,295 11,686
10/31/91 13,603 15,639 12,028
10/31/92 15,065 17,376 12,413
10/31/93 17,181 20,011 12,746
9/30/94 16,034 19,020 13,132
9/30/95 18,447 22,252 13,421
</TABLE>
On the chart above you can see how the Advantus Bond Fund Class A shares' total
return compared to the Lehman Brother's Corporate Bond 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 Bond
Fund Class A shares (August 14, 1987) through September 30, 1995.
CLASS B
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL
RETURN:
<S> <C> <C> <C>
One year 8.9%
Since inception (8/19/94) 7.1%
Class B Lehman Brother's Index CPI
8/19/94 10,000 10,000 10,000
9/30/94 9,876 9,819 10,067
9/30/95 10,801 11,488 10,289
</TABLE>
On the chart above you can see how the Advantus Bond Fund Class B shares' total
return compared to the Lehman Brother's Corporate Bond 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 Bond
Fund Class B shares (August 19, 1994) through September 30, 1995.
4
<PAGE>
ADVANTUS BOND FUND
SEPTEMBER 30, 1995
CLASS C
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
TOTAL RETURN:
<S> <C> <C> <C>
Since inception
(3/1/95) 9.3%
Class C Lehman Brother's Index CPI
3/01/95 10,000 10,000 10,000
9/30/95 10,925 11,087 10,146
</TABLE>
On the chart above you can see the Advantus Bond Fund Class C shares' total
return compared to the Lehman Brother's Corporate Bond 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 Bond
Fund Class C shares (March 1, 1995) through September 30, 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
you 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 applicable
contingent deferred sales charge for Class B shares. 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 BOND FUND
SEPTEMBER 30, 1995
TEN LARGEST BOND HOLDINGS
<TABLE>
<CAPTION>
MARKET % OF BOND
COMPANY VALUE PORTFOLIO
- -------------------------------------------------- ---------- ---------
<S> <C> <C> <C>
U.S. Treasury Note--10.75%, 08/15/05.............. $ 993,046 6.5%
Reynolds Metals Company--9.375%, 06/15/99......... 578,705 3.8%
Chrysler Corporation--10.95%, 08/01/17............ 559,019 3.7%
Time Warner--9.15%, 02/01/23...................... 541,277 3.5%
Consolidated Natural Gas--8.75%, 10/01/19......... 539,844 3.5%
Delta Airlines--9.2%, 9/23/14..................... 536,460 3.5%
U.S. Treasury--7.75%, 11/30/99.................... 531,563 3.5%
Alltel Corporation--10.375%, 04/01/09............. 530,549 3.5%
Comstat Corporation--7.7%, 05/10/07............... 523,805 3.4%
Overseas Shipholding Group--8.75%, 12/01/13....... 520,340 3.4%
---------- ---
$5,854,608 38.3%
---------- ---
---------- ---
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Advantus Bond Fund
U.S. Treasury 10.8%
U.S. Government Agencies 12.2%
AA Rated 9.1%
A Rated 26.9%
BBB Rated 30.0%
BB Rated 3.2%
Cash and Other
Assets/Liabilities 7.8%
100.0%
</TABLE>
6
<PAGE>
ADVANTUS BOND FUND
INVESTMENTS IN SECURITIES
SEPTEMBER 30, 1995
(Percentages of each investment category relate to total net assets.)
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE(A)
- --------- ------------
<C> <S> <C> <C> <C>
LONG-TERM DEBT SECURITIES (92.2%)
GOVERNMENT OBLIGATIONS (28.7%)
U.S. GOVERNMENT AND AGENCIES OBLIGATIONS (23.0%)
$ 500,000 Federal Home Loan Bank........................... 8.460% 12/20/99 $ 502,520
500,000 Federal Home Loan Mortgage....................... 7.030% 04/05/04 503,168
455,997 Federal National Mortgage Association............ 7.000% 09/01/17 453,502
259,111 Government National Mortgage Association......... 7.000% 03/15/23 255,978
312,942 Government National Mortgage Association......... 7.000% 04/15/22 309,430
250,000 U.S. Treasury Note............................... 6.750% 05/31/99 256,172
750,000 U.S. Treasury Note............................... 10.750% 08/15/05 993,046
500,000 U.S. Treasury Note............................... 7.750% 11/30/99 531,563
------------
3,805,379
------------
OTHER GOVERNMENT (3.0%)
500,000 Quebec Province of Canada(b)..................... 7.500% 07/15/23 493,590
------------
LOCAL AND STATE GOVERNMENT OBLIGATIONS (2.7%)
462,000 Wyoming Community Development Authority.......... 6.850% 06/01/10 455,070
------------
Total government obligations (cost: $4,631,747)........................ 4,754,039
------------
CORPORATE OBLIGATIONS (63.5%)
BASIC INDUSTRIES (3.5%)
Primary Metals (3.5%)
530,000 Reynolds Metals Company.......................... 9.375% 06/15/99 578,705
------------
CAPITAL GOODS (8.9%)
Aerospace/Defense (3.0%)
500,000 Rockwell International........................... 6.750% 09/15/02 506,561
------------
Machinery (2.7%)
400,000 Joy Technologies Incorporated.................... 10.250% 09/01/03 448,000
------------
Telecommunications (3.2%)
500,000 Comsat Corporation............................... 7.700% 05/10/07 523,805
------------
CONSUMER CYCLICAL (3.4%)
Automotive (3.4%)
500,000 Chrysler Corporation............................. 10.950% 08/01/17 559,019
------------
CONSUMER STAPLES (13.0%)
Drugs (3.0%)
500,000 American Home Products........................... 6.500% 10/15/02 497,480
------------
Entertainment (1.6%)
250,000 Royal Caribbean Cruises.......................... 8.250% 04/01/05 264,495
------------
</TABLE>
See accompanying notes to investments in securities.
7
<PAGE>
ADVANTUS BOND FUND
INVESTMENTS IN SECURITIES--CONTINUED
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE(A)
- --------- ------------
<C> <S> <C> <C> <C>
CORPORATE OBLIGATIONS--CONTINUED
Food (2.2%)
$ 364,286 General Mills.................................... 6.235% 03/15/97 $ 365,876
------------
Media (3.3%)
500,000 Time Warner...................................... 9.150% 02/01/23 541,277
------------
Printing and Publishing (2.9%)
500,000 News America Corporation......................... 7.750% 01/20/24 487,865
------------
CREDIT SENSITIVE (3.1%)
Building Materials (3.1%)
500,000 CSR Finance...................................... 7.700% 07/21/25 513,512
------------
ENERGY (3.3%)
Natural Gas Distribution (3.3%)
500,000 Consolidated Natural Gas......................... 8.750% 10/01/19 539,844
------------
FINANCIAL (12.7%)
Commercial Finance (5.3%)
500,000 Banc One Corporation............................. 7.000% 07/15/05 504,152
400,000 GMAC............................................. 5.500% 12/15/01 374,100
------------
878,252
------------
Real Estate (7.4%)
237,105 Green Tree Financial, Net Interest Margin, Series
1995-A, Class A................................. 7.250% 07/15/05 237,098
500,000 Property Trust of America........................ 7.500% 02/15/14 473,850
500,000 Security Capital Industrial Trust................ 7.875% 05/15/09 507,054
------------
1,218,002
------------
UTILITIES (6.3%)
Electric (3.1%)
500,000 Commonwealth Edison.............................. 8.250% 12/01/07 511,328
------------
Telephones (3.2%)
500,000 Alltel Corporation............................... 10.375% 04/01/09 530,549
------------
TRANSPORTATION (9.3%)
Air Transportation (3.2%)
500,000 Delta Air Lines.................................. 9.200% 09/23/14 536,460
------------
Trucking (3.0%)
500,000 Consolidated Freightways(c)...................... 7.350% 06/01/05 499,672
------------
</TABLE>
8
<PAGE>
ADVANTUS BOND FUND
INVESTMENTS IN SECURITIES--CONTINUED
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE(A)
- --------- ------------
<C> <S> <C> <C> <C>
CORPORATE OBLIGATIONS--CONTINUED
Water Transportation (3.2%)
$ 500,000 Overseas Shipholding Group....................... 8.750% 12/01/13 $ 520,340
------------
Total corporate obligations (cost: $10,454,316)........................ 10,521,042
------------
Total long-term debt securities (cost: $15,086,063).................... 15,275,081
------------
SHORT-TERM SECURITIES (4.4%)
730,000 U.S. Treasury Bills..............................5.44%-5.45% 12/07/95 722,567
------------
Total short-term securities (cost: $722,676)........................... 722,567
------------
Total investments in securities (cost: $15,808,739)(d)................. $ 15,997,648
------------
------------
</TABLE>
Notes to Investments in Securities
(a) Securities are valued by procedures described in note 2 to the financial
statements.
(b) The Fund held 3.0% of net assets in foreign securities as of September 30,
1995.
(c) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At September 30,
1995, the value of these securities amounted to $499,672 or 3.0% of net
assets.
(d) At September 30, 1995 the cost of securities for federal income tax purposes
was $15,808,739. The aggregate unrealized appreciation and depreciation of
investments in securities based on this cost were:
<TABLE>
<S> <C>
Gross unrealized appreciation..................... $ 251,349
Gross unrealized depreciation..................... (62,440)
---------
Net unrealized appreciation....................... $ 188,909
---------
---------
</TABLE>
9
<PAGE>
ADVANTUS BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1995
<TABLE>
<S> <C>
ASSETS
Investments in securities, at market value--see accompanying schedule for
detailed listing (identified cost: $15,808,739)................................ $15,997,648
Receivable for Fund shares sold................................................. 5,239
Receivable for investment securities sold....................................... 867,658
Accrued interest receivable..................................................... 313,833
-----------
Total assets................................................................ 17,184,378
-----------
LIABILITIES
Cash overdraft.................................................................. 1,003
Payable for Fund shares repurchased............................................. 73,061
Payable for investment securities purchased..................................... 524,606
Payable to Adviser.............................................................. 14,493
Dividends payable to shareholders............................................... 1,923
-----------
Total liabilities........................................................... 615,086
-----------
Net assets applicable to outstanding capital stock.............................. $16,569,292
-----------
-----------
Represented by:
Capital stock--$.01 par value (note 1)........................................ $ 16,189
Additional paid-in capital.................................................... 16,752,143
Undistributed net investment income........................................... 6,706
Accumulated net realized losses from investments.............................. (394,655)
Unrealized appreciation of investments........................................ 188,909
-----------
Total--representing net assets applicable to outstanding capital stock...... $16,569,292
-----------
-----------
Net assets applicable to outstanding Class A Shares............................. $15,315,447
-----------
-----------
Net assets applicable to outstanding Class B Shares............................. $ 1,141,804
-----------
-----------
Net assets applicable to outstanding Class C Shares............................. $ 112,041
-----------
-----------
Shares outstanding and net asset value per share:
Class A--Shares outstanding 1,496,326......................................... $ 10.24
-----------
-----------
Class B--Shares outstanding 111,592........................................... $ 10.23
-----------
-----------
Class C--Shares outstanding 10,955............................................ $ 10.23
-----------
-----------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
ADVANTUS BOND FUND
STATEMENTS OF OPERATIONS
YEAR ENDED SEPTEMBER 30, 1995
<TABLE>
<S> <C>
Investment income:
Interest........................................................................... $ 1,128,433
------------
Expenses (note 4):
Investment advisory fee............................................................ 104,228
Distribution fees--Class A......................................................... 43,001
Distribution fees--Class B......................................................... 5,214
Distribution fees--Class C......................................................... 346
Administrative services fee........................................................ 39,200
Custodian fees..................................................................... 2,674
Auditing and accounting services................................................... 10,550
Legal fees......................................................................... 5,098
Directors' fees.................................................................... 333
Registration fees.................................................................. 37,833
Printing and shareholder reports................................................... 20,735
Insurance.......................................................................... 5,420
Other.............................................................................. 8,423
------------
Total expenses................................................................. 283,055
Less fees and expenses waived or absorbed:
Class A distribution fees........................................................ (28,668)
Other fund expenses.............................................................. (100,487)
------------
Total fees and expenses waived or absorbed..................................... (129,155)
------------
Total net expenses............................................................. 153,900
------------
Investment income--net......................................................... 974,533
------------
Realized and unrealized gains (losses) on investments:
Net realized losses on investments (note 3)........................................ (56,377)
Net change in unrealized appreciation or depreciation on investments............... 1,185,953
------------
Net gains on investments....................................................... 1,129,576
------------
Net increase in net assets resulting from operations................................. $ 2,104,109
------------
------------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
ADVANTUS BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SEPTEMBER 30, 1995 AND
PERIOD FROM NOVEMBER 1, 1993 TO SEPTEMBER 30, 1994
<TABLE>
<CAPTION>
1995 1994
----------- -----------
<S> <C> <C>
Operations:
Investment income--net........................................................ $ 974,533 $ 750,863
Net realized losses on investments............................................ (56,377) (338,278)
Net change in unrealized appreciation or depreciation on investments.......... 1,185,953 (1,403,507)
----------- -----------
Increase (decrease) in net assets resulting from operations................. 2,104,109 (990,922)
----------- -----------
Distributions to shareholders from:
Investment income--net:
Class A..................................................................... (939,133) (750,510)
Class B..................................................................... (28,946) (312)
Class C..................................................................... (1,889) --
Net realized gains on investments:
Class A..................................................................... -- (622,857)
----------- -----------
Total distributions......................................................... (969,968) (1,373,679)
----------- -----------
Capital share transactions (notes 4 and 5):
Proceeds from sales:
Class A..................................................................... 1,777,559 3,127,259
Class B..................................................................... 1,038,123 51,433
Class C..................................................................... 116,675 --
Shares issued as a result of reinvested dividends:
Class A..................................................................... 544,661 806,836
Class B..................................................................... 26,143 312
Class C..................................................................... 1,889 --
Payments for redemption of shares:
Class A..................................................................... (1,973,311) (2,185,713)
Class B..................................................................... (16,414) --
Class C..................................................................... (9,920) --
----------- -----------
Increase in net assets from capital share transactions...................... 1,505,415 1,800,127
----------- -----------
Total increase (decrease) in net assets..................................... 2,639,556 (564,474)
Net assets at beginning of period............................................... 13,929,736 14,494,210
----------- -----------
Net assets at end of period (including undistributed net investment income of
$6,706 and $2,141, respectively)............................................... $16,569,292 $13,929,736
----------- -----------
----------- -----------
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
ADVANTUS BOND FUND
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
(1) ORGANIZATION
The Advantus Bond 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 Bond Fund, Inc. (effective March 1, 1995). Prior to
March 1, 1995 the Fund was known as MIMLIC Fixed Income Securities 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 shares 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
periods decline as the amount of the purchase increases and range 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 and sales charges charged differs between Class A,
Class B and Class C shares. Income, expenses (other than distribution fees) and
realized and unrealized gains or losses on investments are allocated to each
class of shares based upon its relative net assets.
On January 18, 1994, the Board of Directors elected to change the fiscal
year end of the Fund from October 31 to September 30.
(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. Interest income, including amortization of bond premium
and discount computed on a level yield basis, is accrued daily.
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--(CONTINUED)
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.
For federal income tax purposes, the Fund had a capital loss carryover at
September 30, 1995 of $394,655, which, if not offset by subsequent capital
gains, will expire from September 30, 2003 to September 30, 2004. It is unlikely
the board of directors will authorize a distribution of any net realized capital
gains until the available capital loss carryover has been offset or expired.
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 daily and paid monthly in
cash or reinvested in additional shares. Realized gains, if any, are paid
annually.
(3) INVESTMENT SECURITY TRANSACTIONS
For the year ended September 30, 1995, purchases of securities and proceeds
from sales, other than temporary investments in short-term securities aggregated
$39,992,974 and $37,897,269, respectively.
(4) EXPENSES AND RELATED PARTY TRANSACTIONS
On February 14, 1995 shareholders of the Fund approved a new investment
advisory agreement with Advantus Capital Management, Inc. (Advantus Capital or
the Adviser). 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 .70 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 and wholly-owned subsidiary of
MIMLIC
14
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(4) EXPENSES AND RELATED PARTY TRANSACTIONS--(CONTINUED)
Management, 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 .30 percent of average daily net assets of Class A shares. The Class B
and Class C Plans provide for a fee up to 1.00 percent of average daily net
assets of Class B and Class C shares, respectively. The Class B and Class C 1.00
percent fee is comprised of a .75 percent distribution fee and a .25 percent
service fee. MIMLIC Sales is currently waiving that portion of Class A
distribution fees which exceeds, as a percentage of average daily net assets,
.10 percent. MIMLIC Sales waived Class A distribution fees in the amount of
$28,668 for the year ended September 30, 1995.
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.
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 service fee was
$3,600 per month. Effective February 1, 1995, the administrative service 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. During the year ended September 30, 1995, Advantus Capital and MIMLIC
Management voluntarily agreed to absorb $100,487 in expenses that were otherwise
payable by the Fund.
Sales charges received by MIMLIC Sales for distributing the Fund's three
classes of shares amounted to $61,826.
As of September 30, 1995, Minnesota Mutual Life 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..................................................................... 371,243 24.8%
Class B..................................................................... 5,495 4.9%
Class C..................................................................... 1,069 9.8%
</TABLE>
Legal fees were paid to a law firm of which the Fund's secretary is a
partner in the amount of $4,713.
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(5) CAPITAL SHARE TRANSACTIONS
Transactions in shares for the year ended September 30, 1995 and the period
from November 1, 1993 to September 30, 1994 for Class A shares, the year ended
September 30, 1995 and the period from August 19, 1994 to September 30, 1994 for
Class B shares and the period from March 1, 1995 to September 30, 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.................................................. 181,987 307,605 105,047 5,310 11,740
Issued for reinvested distributions................... 55,696 78,367 2,629 33 189
Redeemed.............................................. (203,125) (217,456) (1,427) -- (974)
---------- ---------- --------- --------- -----------
34,558 168,516 106,249 5,343 10,955
---------- ---------- --------- --------- -----------
---------- ---------- --------- --------- -----------
</TABLE>
(6) RESTRICTED SECURITIES
At September 30, 1995, investments in securities includes an issue which
generally cannot be offered for sale to the public without first being
registered under the Securities Act of 1933 (restricted security). In the event
the securities are registered, those carrying registration rights allow for the
issuer to bear all the related costs; for issues without rights, the Fund may
incur such costs. The Fund currently limits investments in securities that are
not readily marketable, including restricted securities, to 10% of net assets at
the time of the purchase. Securities are valued by procedures described in note
2. The aggregate value of restricted securities held by the Fund at September
30, 1995 was $499,672 which represents 3.0% of net assets.
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(7) 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
NOVEMBER 1,
YEAR ENDED 1993 TO YEAR ENDED OCTOBER 31
SEPTEMBER 30, SEPTEMBER 30, -------------------------
1995 1994 1993 1992 1991
------------- ------------- ------- ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 9.50 $ 11.21 $ 10.72 $10.38 $ 9.79
------ ------ ------- ------ ------
Income from investment operations:
Net investment income........................... .64 .53 .63 .73 .79
Net gains or losses on securities (both realized
and unrealized)................................ .74 (1.24) .78 .36 .59
------ ------ ------- ------ ------
Total from investment operations.............. 1.38 (.71) 1.41 1.09 1.38
------ ------ ------- ------ ------
Less distributions:
Dividends from net investment income............ (.64) (.53) (.63) (.73) (.79)
Distributions from capital gains................ -- (.47) (.29) (.02) --
------ ------ ------- ------ ------
Total distributions........................... (.64) (1.00) (.92) (.75) (.79)
------ ------ ------- ------ ------
Net asset value, end of period.................... $ 10.24 $ 9.50 $ 11.21 $10.72 $10.38
------ ------ ------- ------ ------
------ ------ ------- ------ ------
Total return (a).................................. 15.1% (6.7)%(b) 14.0% 10.8% 14.7%
Net assets, end of period (in thousands).......... $15,315 $13,879 $14,494 $9,415 $5,967
Ratio of expenses to average daily net assets
(d).............................................. 1.00% 1.00%(c) 1.00% 1.00% .97%
Ratio of net investment income to average daily
net assets (d)................................... 6.58% 5.79%(c) 5.78% 6.88% 7.91%
Portfolio turnover rate (excluding short-term
securities)...................................... 270.7% 163.5% 139.5% 115.6% 92.7%
</TABLE>
- ----------
(a) 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.
(b) Total return is presented for the period from November 1, 1993 to September
30, 1994.
(c) Adjusted to an annual basis.
(d) The Fund's Adviser and Distributor voluntarily absorbed or waived $129,155,
$107,448, $86,877, $78,626 and $66,537 in expenses for the year ended
September 30, 1995, for the period from November 1, 1993 to September 30,
1994 and the years ended October 31, 1993, 1992 and 1991, respectively. If
Class A shares had been charged for these expenses, the ratio of expenses to
average daily net assets would have been 1.88%, 1.83%, 1.70%, 2.10% and
2.35%, respectively, and the ratio of net investment income to average daily
net assets would have been 5.70%, 4.95%, 5.08%, 5.78% and 6.53%,
respectively.
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(7) FINANCIAL HIGHLIGHTS--(CONTINUED)
<TABLE>
<CAPTION>
CLASS B CLASS C
-------------------------------- -------------
PERIOD FROM PERIOD FROM
AUGUST 19, MARCH 1, 1995
YEAR ENDED 1994 (A) TO (A) TO
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1995 1994 1995
------------- ------------- -------------
<S> <C> <C> <C>
Net asset value, beginning of period.............. $ 9.50 $ 9.68 $ 9.67
------ ------ ------
Income from investment operations:
Net investment income........................... .55 .06 .33
Net gains or losses on securities (both realized
and unrealized)................................ .73 (.18) .55
------ ------ ------
Total from investment operations.............. 1.28 (.12) .88
------ ------ ------
Less distributions:
Dividends from net investment income............ (.55) (.06) (.32)
Distributions from capital gains................ -- -- --
------ ------ ------
Total distributions........................... (.55) (.06) (.32)
------ ------ ------
Net asset value, end of period.................... $ 10.23 $ 9.50 $ 10.23
------ ------ ------
------ ------ ------
Total return (b).................................. 13.9% (1.2)%(c) 9.3%(d)
Net assets, end of period (in thousands).......... $1,142 $51 $112
Ratio of expenses to average daily net assets
(f).............................................. 1.90% .22%(g) 1.90%(e)
Ratio of net investment income to average daily
net assets (f)................................... 5.61% .69%(g) 5.54%(e)
Portfolio turnover rate (excluding short-term
securities)...................................... 270.7% 163.5% 270.7%
</TABLE>
- ----------
(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 August 19, 1994, commencement
of operations, to September 30, 1994.
(d) Total return is presented for the period from March 1, 1995, commencement of
operations, to September 30, 1995.
(e) Adjusted to an annual basis.
(f) The Fund's Adviser and Distributor voluntarily absorbed or waived $129,155,
$107,448, $86,877, $78,626 and $66,537 in expenses for the year ended
September 30, 1995, for the period from November 1, 1993 to September 30,
1994 and the years ended October 31, 1993, 1992 and 1991, respectively. If
Class B shares had been charged for these expenses, the ratio of expenses to
average daily net assets would have been 2.56% and .35%, respectively, and
the ratio of net investment income to average daily net assets would have
been 4.95% and .56%, respectively, for the year ended September 30, 1995 and
the period from August 19, 1994, commencement of operations, to September
30, 1994, respectively. If Class C shares had been charged for these
expenses, the ratio of expenses to average daily net assets would have been
2.56% and the ratio of net investment income to average daily net assets
would have been 4.88% for the period from March 1, 1995, commencement of
operations, to September 30, 1995.
(g) Ratios presented for the periods from August 19, 1994 to September 30, 1994
are not annualized as they are not indicative of anticipated results.
18
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Advantus Bond Fund, Inc.:
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments in securities, of the Advantus Bond Fund,
Inc. (the Fund) as of September 30, 1995 and the related statement of operations
for the year then ended, the statement of changes in net assets for the year
ended September 30, 1995 and the period from November 1, 1993 to September 30,
1994 and the financial highlights for the year ended September 30, 1995, the
period from November 1, 1993 to September 30, 1994 and each of the years in the
three-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. As to securities purchased or sold but not received or delivered, we
request confirmations from brokers, and where replies are not received, we carry
out other appropriate auditing procedures. 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, 1995 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 3, 1995
19
<PAGE>
FEDERAL INCOME TAX INFORMATION
The following information for federal income tax purposes is presented as an
aid to shareholders in reporting the distributions paid by the Fund in the
fiscal year ended September 30, 1995. Dividends for the 1995 calendar year will
be reported to you on Form 1099-Div in late January 1996. Shareholders should
consult a tax adviser on how to report these distributions for state and local
purposes.
CLASS A
Income distributions--taxable as dividend income, none qualifying for
deduction by corporations
<TABLE>
<CAPTION>
PAYABLE DATE PER SHARE
- ------------------------------------------------------------------------------------- ---------
<S> <C>
October 31, 1994..................................................................... $ 0.0513
November 30, 1994.................................................................... 0.0518
December 31, 1994.................................................................... 0.0532
January 31, 1995..................................................................... 0.0558
February 28, 1995.................................................................... 0.0511
March 31, 1995....................................................................... 0.0540
April 30, 1995....................................................................... 0.0539
May 30, 1995......................................................................... 0.0551
June 30, 1995........................................................................ 0.0527
July 31, 1995........................................................................ 0.0535
August 31, 1995...................................................................... 0.0543
September 30, 1995................................................................... 0.0528
---------
$ 0.6395
---------
---------
</TABLE>
CLASS B
Income distributions--taxable as dividend income, none qualifying for
deduction by corporations
<TABLE>
<CAPTION>
PAYABLE DATE PER SHARE
- ------------------------------------------------------------------------------------- ---------
<S> <C>
October 31, 1994..................................................................... $ 0.0454
November 30, 1994.................................................................... 0.0463
December 31, 1994.................................................................... 0.0460
January 31, 1995..................................................................... 0.0486
February 28, 1995.................................................................... 0.0445
March 31, 1995....................................................................... 0.0466
April 30, 1995....................................................................... 0.0467
May 30, 1995......................................................................... 0.0474
June 30, 1995........................................................................ 0.0451
July 31, 1995........................................................................ 0.0458
August 31, 1995...................................................................... 0.0466
September 30, 1995................................................................... 0.0453
---------
$ 0.5543
---------
---------
</TABLE>
20
<PAGE>
CLASS C
Income distributions--taxable as dividend income, none qualifying for
deduction by corporations
<TABLE>
<CAPTION>
PAYABLE DATE PER SHARE
- ------------------------------------------------------------------------------------- ---------
<S> <C>
March 31, 1995....................................................................... 0.0467
April 30, 1995....................................................................... 0.0467
May 30, 1995......................................................................... 0.0474
June 30, 1995........................................................................ 0.0451
July 31, 1995........................................................................ 0.0457
August 31, 1995...................................................................... 0.0466
September 30, 1995................................................................... 0.0452
---------
$ 0.3234
---------
---------
</TABLE>
21
<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 your fund account - subject to minimum guidelines.
Depending upon the performance of the underlying investment options, the cash
value may be worth more or less than the original amount invested when
withdrawn.
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 your 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.
22
<PAGE>
GROUP INVESTMENT PLAN: This plan provides employers and employees with a
convenient means for investing in the funds through payroll deduction.
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. Depending upon the performance of the
underlying investment options, the cash value may be worth more or less than the
original amount invested upon redemption.
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 $272 million in assets in addition to $1.8 billion in
assets for other clients. Advantus Capital's seasoned portfolio managers average
more than 11 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
23
<PAGE>
THIS REPORT HAS BEEN PREPARED FOR SHAREHOLDERS AND MAY BE DISTRIBUTED
TO OTHERS ONLY IF PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS.
READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST
ADVANTUS-TM-
FAMILY OF FUNDS
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.48645 11-95
