<PAGE>
[LOGO]
Annual Report to Shareholders
Advantus Enterprise Fund
September 30, 1996
[LOGO]
<PAGE>
ADVANTUS ENTERPRISE 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 21
<PAGE>
October 31, 1996 [PHOTO]
Dear Shareholders:
The nation's economic expansion, noted for its longevity, breadth and strength,
pressed forward in the third quarter of 1996. The Federal Reserve's decision not
to raise interest rates, coupled with the long awaited upswing of several key
foreign economies, offers new signs that the expansion, currently in its 23rd
quarter, will extend well into next year.
The financial markets shrugged off concerns about an overheated economy to post
record highs for both the Dow Jones Industrial Average and the NASDAQ. The
current optimism is based partly on a relatively unique phenomenon of this
expansion; industrial production, a harbinger of future economic activity, is
actually rebuilding depleted inventories. Normally associated with the early
stages of an economic recovery, this activity is unusual for a mature expansion
and indicates continued economic strength.
Gross Domestic Product (GDP), clipping along at 2.5 - 3.0 percent annually, is
hovering above the Fed's comfort level. However, consumer confidence is very
high and plays a definite role in our forecast. After experiencing the lowest
unemployment rates in nearly seven years, consumers today are employed,
confident and spending money which bodes well for continued growth. This higher
level of consumer spending is capable of sustaining a strong GDP without risk of
exhausting the recovery.
Inflation, a primary concern of a heated up economy, is playing only a minor
role in the current recovery. The abundance of material resources supplied from
the former communist countries in Eastern Europe and the Soviet Union has
mitigated the resource demands of the U.S. economy's strength. In addition, the
increase of the world's labor force, in China and elsewhere, provides lower cost
production options for many manufacturers, eliminating the need to raise prices.
Consequently, we can envision a scenario in which inflation and interest rates
actually edge lower in the coming months.
The Advantus Funds took full advantage of the extended expansion and recorded
impressive gains across broad industrial segments this year. While mandated wage
accelerations will affect many service related industries in the months ahead,
we remain cautiously optimistic that most sectors will experience strong growth
well into 1997. Further buttressing this report is the fact that in the first
year of every Presidential term since 1948, the markets have returned positive
performance.
The Advantus family of mutual funds offers a wide array of investment objectives
to capture growth potential in many different market segments. Our experienced
and dedicated portfolio managers will make the most of each opportunity.
Sincerely,
[SIGNATURE]
Paul Gooding, President
Advantus Capital Management, Inc.
<PAGE>
ADVANTUS ENTERPRISE FUND
PERFORMANCE UPDATE
[PHOTO]
JAMES P. TATERA, CFA
SENIOR VICE PRESIDENT AND PORTFOLIO MANAGER
The Advantus Enterprise Fund is a mutual
fund designed for investors seeking
long-term accumulation of capital. In
pursuit of this objective, the Fund will
invest primarily in common and preferred
stocks issued by small companies, defined
in terms of either market capitalization
or gross revenues.
-Dividends paid quarterly.
-Capital gains distributions paid annually.
PERFORMANCE
Overall performance of smaller companies has been volatile this year as concerns
about the economy, inflation and corporate earnings have all had an impact.
Investors in smaller stocks suffered as investors gravitated to the perceived
quality and stability of large companies. Within this environment, the
Enterprise Fund, which focuses on smaller companies, had a terrific year,
returning the following for each of the three classes of shares offered:
<TABLE>
<S> <C>
Class A 16.7 percent *
Class B 15.7 percent *
Class C 15.6 percent *
</TABLE>
These returns compare very favorably to benchmark indices. The Russell 2000**
gained 11.6 percent and the S&P Midcap+ gained 14.0 percent for the same period.
PORTFOLIO RECAP
For over a year, the stock market's leadership has become increasingly dominated
by a select group of large capitalization stocks with relatively high visibility
and earnings consistency. Typically, these companies are the dominant players in
their industries such as Coca-Cola, Gillette, Intel, Microsoft and Cisco
Systems. In times like today, where there are concerns about overall corporate
profits in an uncertain economic environment, investors have become comfortable
with these dominant companies while becoming nervous about holding shares in
smaller companies. Divergence in valuations have developed within the market
between broad areas such as large-cap versus small-cap and growth stocks versus
cyclical stocks. This divergence has led to more volatility in small stocks than
we have seen in a number of years.
The Enterprise Fund performed well in this volatile environment. We focus on
companies which exhibit strong revenue and earnings growth, while showing
operational momentum which will allow even stronger potential growth in the
future. Leadership within the portfolio has come from a diverse group of
industries. Companies which are economically sensitive yet not technology
oriented that have done well include United Waste Systems (solid waste
disposal), Cambrex Corporation (specialty chemicals) and Blount International
(industrial products and sporting goods). As a growth portfolio focusing on fast
growing companies, it is typical to see a significant portfolio weighting in the
consumer cyclical area, namely the retail area.
2
<PAGE>
ADVANTUS ENTERPRISE FUND
SEPTEMBER 30, 1996
The Enterprise Fund successfully identified fast growing companies in this area
like Kohls Corporation (department store), Borders Group (book superstore),
Tommy Hilfiger (apparel) and Global Direct Mail (direct marketer of computer
products). Technology stocks which performed well include Gartner Group (new
technology consultants), Cascade Corporation (networking products), Check Point
Software (security software) and BISYS Group (data processing servicing).
Negatively impacting the Fund were broad based moves by investors away from the
fast growing, sometimes volatile, areas into "safe havens" like energy and
financial companies. The Fund's limited exposure to these areas affected
performance. These slower growth areas are not typically areas which the
portfolio has held positions and in market environments like the recent past
that strategy will hurt performance in the short term.
OUTLOOK
Previously we have discussed the divergent nature of the market as concerns
about the economic growth and thus earnings growth have led investors into
larger, dominant companies at the expense of smaller companies. Generally, we
believe this market phenomenon will continue to some degree until investors feel
they have some clarity concerning the economy and interest rates. With this in
mind, we feel it is an outstanding time to buy smaller companies which are well
positioned to grow, have operational momentum and strong management teams. The
Enterprise Fund is well positioned to lead you through 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. Investment returns and principal values will fluctuate so that shares
upon redemption may be worth more or less than their original cost.
**The Russell 2000 Index represents the bottom two thirds of the largest 3,000
publicly traded companies domiciled in the United States.
+The S&P Midcap Index is comprised by Standard & Poor's and contains companies
chosen for their size, as measured by market capitalization, industry and
liquidity.
3
<PAGE>
ADVANTUS ENTERPRISE FUND
SEPTEMBER 30, 1996
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN ADVANTUS
ENTERPRISE FUND, WILSHIRE MIDCAP INDEX AND CONSUMER PRICE INDEX
On the following charts you can see how the total return for each of the three
classes of shares of the Advantus Enterprise Fund compared to the Wilshire
Midcap Index and the Consumer Price Index. The lines in each graph represent the
cumulative total return of a hypothetical $10,000 investment made on the
inception date of each class of shares of the Advantus Enterprise Fund
(September 16, 1994 for Class A and Class B and March 1, 1995 for Class C)
through September 30, 1996.
CLASS A AND B
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL
RETURN:
<S> <C> <C> <C> <C>
Class A:
One year 10.8%
Since inception (9/16/94) 18.2%
Class B:
One year 10.7%
Since inception (9/16/94) 18.6%
Class A Class B Wilshire Midcap Index CPI
9/16/94 10,000 10,000 10,000 10,000
9/30/94 9,419 9,910 9,942 10,128
9/30/95 12,044 12,107 12,439 10,351
9/30/96 14,051 14,173 14,443 10,662
</TABLE>
4
<PAGE>
ADVANTUS ENTERPRISE FUND
SEPTEMBER 30, 1996
CLASS C
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL
RETURN:
<S> <C> <C> <C>
One year 15.6%
Since inception (3/1/95) 23.1%
Class C Wilshire Midcap Index CPI
3/1/95 10,000 10,000 10,000
9/30/95 12,038 12,157 10,146
9/30/96 13,913 14,115 10,450
</TABLE>
The preceding 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
your 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. Investment
returns and principal values will fluctuate so that shares upon redemption may
be worth more or less than their original cost.
5
<PAGE>
ADVANTUS ENTERPRISE FUND
SEPTEMBER 30, 1996
TEN LARGEST STOCK HOLDINGS
<TABLE>
<CAPTION>
MARKET % OF STOCK
COMPANY SHARES VALUE PORTFOLIO
- ------------------------------ ------ ---------- ----------
<S> <C> <C> <C>
Tommy Hilfiger Corporation.... 23,500 $1,392,375 3.6%
United Waste Systems, Inc..... 35,542 1,235,084 3.2%
Kaydon Corporation............ 24,900 1,070,700 2.8%
T. Rowe Price Associates...... 31,200 1,014,000 2.6%
MSC Industrial Direct
Company...................... 27,700 986,813 2.6%
Idexx Laboratories, Inc....... 21,700 981,925 2.6%
Gartner Group Incorporated.... 28,100 955,400 2.5%
Borders Group Incorporated.... 25,420 946,895 2.5%
Acxiom Corporation............ 22,100 908,862 2.3%
CUC International, Inc........ 21,966 875,894 2.3%
---------- ---
$10,367,948 27.0%
---------- ---
---------- ---
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Capital Goods 11.8%
Consumer Goods and Services 37.8%
Credit Sensitive 8.0%
Intermediate Goods and
Services 7.6%
Technology 21.4%
Cash and Other
Assets/Liabilities 13.4%
</TABLE>
6
<PAGE>
ADVANTUS ENTERPRISE FUND
INVESTMENTS IN SECURITIES
SEPTEMBER 30, 1996
(Percentages of each investment category relate to total net assets.)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (86.6%)
CAPITAL GOODS (11.8%)
Machinery (11.8%)
15,000 AES China Generating Co, Ltd (b)............. $ 142,734
19,500 Blount International Incorporated............ 655,688
24,900 Kaydon Corporation........................... 1,070,700
3,900 LCC International Incorporated (b)........... 71,175
21,200 Millipore Corporation........................ 837,400
27,700 MSC Industrial Direct Co (b)................. 986,813
6,800 Shaw Group, Incorporated (b)................. 236,300
35,542 United Waste Systems, Inc (b)................ 1,235,084
------------
5,235,894
------------
Telecommunication (--%)
400 Advanced Fibre Communication................. 10,000
------------
CONSUMER GOODS AND SERVICES (37.8%)
Consumer Goods (8.0%)
9,600 HCIA Incorporated (b)........................ 576,000
21,700 Idexx Laboratories, Inc (b).................. 981,925
25,100 Medpartners (b).............................. 571,025
15,332 Occusystems, Incorporated (b)................ 459,960
29,600 Physician Reliance Network (b)............... 451,400
<CAPTION>
MARKET
SHARES VALUE(A)
- ----------- ------------
<C> <S> <C>
CONSUMER GOODS AND SERVICES--CONTINUED
18,033 Sunrise Assisted Living Incorporated (b)..... $ 504,924
------------
3,545,234
------------
Consumer Services (14.5%)
13,900 Boston Chicken Incorporated (b).............. 489,975
10,700 Carmike Cinemas, Inc (b)..................... 247,438
21,966 CUC International, Inc (b)................... 875,894
31,764 Extended Stay America (b).................... 651,162
28,100 Gartner Group Incorporated (b)............... 955,400
21,111 GTECH Holdings Corporation (b)............... 678,191
18,700 Lone Star Steakhouse & Saloon, Inc (b)....... 569,181
3,824 Rainforest Cafe Incorporated (b)............. 118,544
23,200 Red Roof Inns Incorporated (b)............... 316,100
17,700 Sola International, Inc (b).................. 659,325
17,002 Sun International Hotels Ltd (b)............. 871,352
------------
6,432,562
------------
Retail (11.6%)
36,924 Advanced Lighting Technologies, Incorporated
(b)......................................... 729,249
12,800 Amerisource Health Corporation (b)........... 569,600
25,420 Borders Group Incorporated (b)............... 946,895
</TABLE>
See accompanying notes to investments in securities.
7
<PAGE>
ADVANTUS ENTERPRISE FUND
INVESTMENTS IN SECURITIES--CONTINUED
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
- ----------- ------------
<C> <S> <C>
CONSUMER GOODS AND SERVICES--CONTINUED
42,400 Casey's General Stores, Inc.................. $ 742,000
18,600 Eastbay Incorporated (b)..................... 330,150
24,900 Friedman's Incorporated (b).................. 466,875
11,700 Global Directmail Corporation (b)............ 558,675
7,200 Kohl's, Inc (b).............................. 259,200
17,000 West Marine Incorporated (b)................. 561,000
------------
5,163,644
------------
Consumer Cyclicals (3.7%)
6,800 Copart Incorporated (b)...................... 134,300
11,300 Stant Corporation............................ 121,475
23,500 Tommy Hilfiger Corporation (b)............... 1,392,375
------------
1,648,150
------------
CREDIT SENSITIVE (8.0%)
Finance (7.0%)
23,900 Amerin (b)................................... 537,750
8,400 MGIC Investment Corporation.................. 565,950
12,100 Partnerre Ltd (c)............................ 344,850
37,100 Roosevelt Financial Group, Inc............... 635,337
31,200 T. Rowe Price Associates..................... 1,014,000
------------
3,097,887
------------
Utilities (1.0%)
15,800 Panamsat Corporation (b)..................... 439,438
------------
<CAPTION>
MARKET
SHARES VALUE(A)
- ----------- ------------
<C> <S> <C>
INTERMEDIATE GOODS AND SERVICES (7.6%)
Energy (1.4%)
21,200 J. Ray McDermott Holdings Incorporated (b)... $ 617,450
------------
Materials (2.8%)
16,387 Cambrex Corporation.......................... 555,110
22,570 McWhorter Technology, Inc (b)................ 440,115
5,000 Valspar Corporation.......................... 246,250
------------
1,241,475
------------
Transportation (3.4%)
26,000 Eagle USA Airfreight, Inc (b)................ 676,000
31,300 Landstar System, Inc (b)..................... 837,275
------------
1,513,275
------------
TECHNOLOGY (21.4%)
22,100 Acxiom Corporation (b)....................... 908,862
6,700 Adtran Incorporated (b)...................... 336,675
20,676 Ansys Incorporated (b)....................... 240,359
16,500 Bisys Group, Inc (b)......................... 676,500
11,900 C-Cube Microsystems Incorporated (b)......... 528,063
6,000 Cascade Communications, Inc (b).............. 489,000
16,600 Check Point Software Technologies Ltd
(b)(c)...................................... 560,250
</TABLE>
See accompanying notes to investments in securities.
8
<PAGE>
ADVANTUS ENTERPRISE FUND
INVESTMENTS IN SECURITIES--CONTINUED
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
- ----------- ------------
<C> <S> <C>
TECHNOLOGY--CONTINUED
17,100 CKS Group Incorporated (b)................... $ 403,987
34,800 Computron Software (b)....................... 121,800
19,900 Danka Business Systems (c)................... 791,025
7,400 Dassault Systems SA (b)(c)................... 309,875
41,800 Data Translation Incorporated (b)............ 470,250
6,636 Datastream Systems, Incorporated (b)......... 200,739
3,400 Digital Systems International Incorporated
(b)......................................... 60,775
20,600 DSC Communications (b)....................... 515,000
8,882 Fore Systems, Inc (b)........................ 367,493
<CAPTION>
MARKET
SHARES VALUE(A)
- ----------- ------------
<C> <S> <C>
TECHNOLOGY--CONTINUED
4,200 HNC Software Incorporated (b)................ $ 168,000
13,800 Integrated Systems (b)....................... 455,400
35,800 Mercury Interactive Corporation (b).......... 496,725
11,101 Objective Systems Integrator (b)............. 228,958
13,600 Pure Atria Corporation (b)................... 513,400
6,401 Sapient Corporation (b)...................... 284,844
9,400 Telephone and Data Systems, Inc.............. 378,350
------------
9,506,330
------------
Total common stocks
(cost: $31,996,113)...................................... 38,451,339
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
- ----------
<C> <S> <C> <C> <C>
SHORT-TERM SECURITIES (13.5%)
$ 535,000 U.S. Treasury Bill...................................... 5.16% 11/14/96 531,703
3,100,000 U.S. Treasury Bills............................... 5.22%-5.28% 12/12/96 3,068,695
400,000 Alabama Power CP........................................ 5.48% 10/22/96 398,707
2,005,000 GMAC CP................................................. 5.45% 10/21/96 1,998,813
-----------
Total short-term securities (cost: $5,997,026)........................... 5,997,918
-----------
Total investments in securities (cost: $37,993,139)(d)................... $44,449,257
-----------
-----------
</TABLE>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in note 2 to the financial
statements.
(b) Presently non-income producing.
(c) The Fund held 4.5% of net assets in foreign securities as of September 30,
1996.
(d) At September 30, 1996 the cost of securities for federal income tax
purposes was $37,993,139. The aggregate unrealized appreciation and
depreciation of investments in securities based on this cost were:
<TABLE>
<S> <C> <C>
Gross unrealized appreciation........... $8,201,572
Gross unrealized depreciation........... (1,745,454)
----------
Net unrealized appreciation............. $6,456,118
----------
----------
</TABLE>
9
<PAGE>
ADVANTUS ENTERPRISE FUND
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1996
<TABLE>
<S> <C>
ASSETS
Investments in securities, at market value--see accompanying schedule for
detailed listing (identified cost: $37,993,139)................................ $ 44,449,257
Cash in bank on demand deposit.................................................. 167,416
Receivable for Fund shares sold................................................. 30,623
Receivable for investment securities sold....................................... 177,557
Dividends receivable............................................................ 6,245
Organizational costs............................................................ 31,742
------------
Total assets................................................................ 44,862,840
------------
LIABILITIES
Payable for Fund shares repurchased............................................. 295
Payable for investment securities purchased..................................... 382,696
Payable to Adviser.............................................................. 79,637
------------
Total liabilities........................................................... 462,628
------------
Net assets applicable to outstanding capital stock.............................. $ 44,400,212
------------
------------
Represented by:
Capital stock--authorized 10 billion shares (Class A--2 billion shares, Class
B--2 billion shares, Class C--2 billion shares and 4 billion shares
unallocated) of $.01 par value (note 1)...................................... $ 27,921
Additional paid-in capital.................................................... 32,785,078
Accumulated net realized gains from investments............................... 5,131,095
Unrealized appreciation of investments........................................ 6,456,118
------------
Total--representing net assets applicable to outstanding capital stock...... $ 44,400,212
------------
------------
Net assets applicable to outstanding Class A Shares............................. $ 38,722,005
------------
------------
Net assets applicable to outstanding Class B Shares............................. $ 4,871,486
------------
------------
Net assets applicable to outstanding Class C Shares............................. $ 806,721
------------
------------
Shares outstanding and net asset value per share:
Class A--Shares outstanding 2,428,973......................................... $ 15.94
------------
------------
Class B--Shares outstanding 311,533........................................... $ 15.64
------------
------------
Class C--Shares outstanding 51,600............................................ $ 15.63
------------
------------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
ADVANTUS ENTERPRISE FUND
STATEMENT OF OPERATIONS
YEAR ENDED SEPTEMBER 30, 1996
<TABLE>
<S> <C>
Investment income:
Interest...................................................................... $ 267,518
Dividends..................................................................... 83,193
-----------
Total investment income..................................................... 350,711
-----------
Expenses (note 4):
Investment advisory fee....................................................... 302,906
Distribution fees--Class A.................................................... 103,177
Distribution fees--Class B.................................................... 30,941
Distribution fees--Class C.................................................... 3,767
Administrative services fee................................................... 41,200
Amortization of organizational costs.......................................... 10,883
Custodian fees................................................................ 10,046
Auditing and accounting services.............................................. 12,593
Legal fees.................................................................... 3,618
Directors' fees............................................................... 589
Registration fees............................................................. 33,269
Printing and shareholder reports.............................................. 30,615
Insurance..................................................................... 5,844
Other......................................................................... 4,950
-----------
Total expenses.............................................................. 594,398
Less fees and expenses waived or absorbed:
Class A distribution fees................................................... (68,785)
-----------
Total net expenses........................................................ 525,613
-----------
Investment loss--net...................................................... (174,902)
-----------
Realized and unrealized gains on investments:
Net realized gains on investments (note 3).................................... 5,318,231
Net change in unrealized appreciation or depreciation on investments.......... 632,962
-----------
Net gains on investments.................................................. 5,951,193
-----------
Net increase in net assets resulting from operations............................ $ 5,776,291
-----------
-----------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
ADVANTUS ENTERPRISE FUND
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
1996 1995
------------- -------------
<S> <C> <C>
Operations:
Investment loss--net...................................... $ (174,902) $ (108,586)
Net realized gains on investments......................... 5,318,231 1,149,528
Net change in unrealized appreciation or depreciation of
investments.............................................. 632,962 4,896,004
------------- -------------
Increase in net assets resulting from operations...... 5,776,291 5,936,946
------------- -------------
Distributions to shareholders from net realized gains on
investments:
Class A................................................. (958,916) (22,643)
Class B................................................. (64,472) (474)
Class C................................................. (4,766) --
------------- -------------
Total distributions................................... (1,028,154) (23,117)
------------- -------------
Capital share transactions (notes 4 and 6):
Proceeds from sales:
Class A................................................. 4,254,677 11,923,790
Class B................................................. 3,090,839 1,409,271
Class C................................................. 697,287 66,063
Shares issued as a result of reinvested dividends:
Class A................................................. 487,551 857
Class B................................................. 64,304 474
Class C................................................. 4,767 --
Payments for redemption of shares:
Class A................................................. (822,143) (122,253)
Class B................................................. (358,921) (6,361)
Class C................................................. (11,840) (408)
------------- -------------
Increase in net assets from capital share
transactions......................................... 7,406,521 13,271,433
------------- -------------
Total increase in net assets.......................... 12,154,658 19,185,262
Net assets at beginning of year............................. 32,245,554 13,060,292
------------- -------------
Net assets at end of year................................... $ 44,400,212 $ 32,245,554
------------- -------------
------------- -------------
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
ADVANTUS ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(1) ORGANIZATION
Advantus Enterprise Fund, Inc. (the Fund) was incorporated on January 27,
1994. 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 Enterprise
Fund, Inc. (effective March 1, 1995). Prior to March 1, 1995 the Fund was known
as MIMLIC Small Company 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 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 charged differs between Class A, Class B and Class C shares.
Income, expenses (other than distribution fees) and realized and unrealized
gains or losses are allocated to each class of shares based upon its relative
net assets.
On June 20, 1994, MIMLIC Asset Management Company (MIMLIC Management)
purchased 7,500 Class A shares and 7,500 Class B shares. Operations of the Fund
did not formally commence until September 16, 1994 when the shares became
effectively registered under the Securities Exchange Act of 1933. The Minnesota
Mutual Life Insurance Company (Minnesota Mutual), the parent of MIMLIC
Management, purchased 1,167,726 Class A shares for $12 million prior to
commencement of operations.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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
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
13
<PAGE>
ADVANTUS ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--(CONTINUED)
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. Dividend income is recognized on the ex-dividend date and
interest income, including amortization of bond premium and discount computed on
a level yield basis, is accrued daily.
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.
Net investment income (loss) 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 (loss) or realized gains (losses) were
recorded by the Fund.
On the statement of assets and liabilities, as a result of permanent
book-to-tax differences, a reclassification adjustment was made to increase
undistributed net investment income by $174,902, decrease accumulated net
realized gains from investment by $164,019 and decrease additional paid-in
capital by $10,883.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income are declared and paid quarterly.
Realized gains, if any, are paid annually.
(3) INVESTMENT SECURITY TRANSACTIONS
For the year ended September 30, 1996, purchases of securities and proceeds
from sales, other than temporary investments in short-term securities aggregated
$30,148,814 and $26,410,246, respectively.
(4) EXPENSES AND RELATED PARTY TRANSACTIONS
On February 14, 1995 shareholders of the Fund approved a new investment
advisory agreement, effective March 1, 1995, with Advantus Capital Management,
Inc. (Advantus Capital or the Adviser). Advantus Capital is a wholly-owned
subsidiary of MIMLIC Management which, prior to March 1, 1995, served as
investment adviser to the Fund. Under the agreement, Advantus Capital manages
the Fund's assets and provides research, statistical and advisory services and
pays related office rental and executive expenses and salaries. In addition,
14
<PAGE>
ADVANTUS ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(4) EXPENSES AND RELATED PARTY TRANSACTIONS--(CONTINUED)
as part of the advisory fee, Advantus Capital pays the expenses of the Fund's
transfer, dividend disbursing and redemption agent (Minnesota Mutual). The fee
for investment management and advisory services is based on the average daily
net assets of the Fund at the annual rate of .80 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 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 $68,785 for the year ended September 30, 1996.
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, organizational costs 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, 1996, the administrative services fee was
$3,100 per month. Effective February 1, 1996, the administrative services fee is
$3,600 per month.
Advantus Capital directly incurs and pays the above operating expenses and
the Fund in turn reimburses Advantus Capital.
Sales charges received by MIMLIC Sales for distributing the Fund's three
classes of shares amounted to $163,228.
As of September 30, 1996, Minnesota Mutual and subsidiaries and the
directors and officers of the Fund as a whole owned the following shares:
<TABLE>
<CAPTION>
NUMBER OF SHARES PERCENTAGE OWNED
------------------ -------------------
<S> <C> <C>
Class A................................................. 2,041,512 84.0%
Class B................................................. 7,744 2.5%
Class C................................................. 889 1.7%
</TABLE>
During the year ended September 30, 1996, legal fees were paid to a law firm
of which the Fund's secretary is a partner in the amount of $3,618.
15
<PAGE>
ADVANTUS ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(5) ORGANIZATIONAL COSTS
The Fund incurred organizational expenses in connection with the start-up
and initial registration. These costs will be amortized over 60 months on a
straight-line basis beginning with the commencement of operations. If any or all
of the shares held by MIMLIC Management, or any other holder, representing
initial capital of the Fund are redeemed during the amortization period, the
redemption proceeds will be reduced by the pro rata portion (based on the ratio
that the number of initial shares redeemed bears to the total number of
outstanding initial shares of the Fund at the date of redemption) of the
unamortized organizational cost balance.
(6) CAPITAL SHARE TRANSACTIONS
Transactions in shares for the years ended September 30, 1996 and 1995 for
Class A and Class B shares and the year ended September 30, 1996 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
-------------------- -------------------- --------------------
1996 1995 1996 1995 1996 1995
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Sold.................................................. 286,168 997,759 208,560 115,168 46,994 5,124
Issued for reinvested distributions................... 35,236 79 4,523 44 337 --
Redeemed.............................................. (55,653) (9,842) (24,953) (508) (823) (32)
--------- --------- --------- --------- --------- ---------
265,751 987,996 188,130 114,704 46,508 5,092
--------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- ---------
</TABLE>
16
<PAGE>
ADVANTUS ENTERPRISE FUND
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
YEAR ENDED SEPTEMBER SEPTEMBER 16,
30, 1994(b) TO
---------------------- SEPTEMBER 30,
1996 1995(a) 1994
--------- ----------- ---------------
<S> <C> <C> <C>
Net asset value, beginning of
period....................... $ 14.08 $ 11.03 $ 11.12
--------- ----------- ---------------
Income from investment
operations:
Net investment income
(loss)..................... (.05) (.04) --
Net gains or losses on
securities (both realized
and unrealized)............ 2.34 3.11 (.09)
--------- ----------- ---------------
Total from investment
operations............... 2.29 3.07 (.09)
--------- ----------- ---------------
Less distributions:
Dividends from net
investment income.......... -- -- --
Distributions from capital
gains...................... (.43) (.02) --
--------- ----------- ---------------
Total distributions....... (.43) (.02) --
--------- ----------- ---------------
Net asset value, end of
period....................... $ 15.94 $ 14.08 $ 11.03
--------- ----------- ---------------
--------- ----------- ---------------
Total return (c).............. 16.7% 27.9% (.8)%(d)
Net assets, end of period (in
thousands)................... $ 38,722 $ 30,454 $ 12,964
Ratio of expenses to average
daily net assets (e)......... 1.31% 1.34% .05%(f)
Ratio of net investment income
(loss) to average daily net
assets (e)................... (.38)% (.48)% (.02)%(f)
Portfolio turnover rate
(excluding short-term
securities).................. 80.2% 48.8% 5.0%
Average commission rate on
common stock transactions
(g).......................... $ .1150 N/A N/A
</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) Commencement of operations.
(c) 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 front-end sales charges.
(d) Total return is presented for the period from September 16, 1994,
commencement of operations, to September 30, 1994.
(e) The Fund's Distributor and Adviser voluntarily waived or absorbed $68,785,
$83,999 and $1,430 in expenses for the years ended September 30, 1996 and
1995 and the period ended September 30, 1994, respectively. If Class A
shares had been charged for these expenses, the ratio of expenses to
average daily net assets would have been 1.51%, 1.75% and .06%,
respectively and the ratio of net investment income (loss) to average daily
net assets would have been (.58)%, (.89)% and (.03)%, respectively.
(f) Ratios presented for the period from September 16, 1994 to September 30,
1994 are not annualized as they are not indicative of anticipated results.
(g) Beginning in fiscal 1996, the Fund is required to disclose an average
brokerage commission rate. The rate is calculated by dividing the total
brokerage commissions paid on applicable purchases and sales of common
stock for the period by the total number of related shares purchased and
sold.
17
<PAGE>
ADVANTUS ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(7) FINANCIAL HIGHLIGHTS--(CONTINUED)
<TABLE>
<CAPTION>
CLASS B CLASS C
----------------------------------------- ------------------------------------
PERIOD FROM
YEAR ENDED SEPTEMBER SEPTEMBER 16, PERIOD FROM MARCH
30, 1994(b) TO YEAR ENDED 1, 1995(b) TO
---------------------- SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1996 1995(a) 1994 1996 1995
--------- ----------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period....................... $ 13.94 $ 11.02 $ 11.12 $ 13.94 $ 11.58
--------- ----------- ------ ------ ------
Income from investment
operations:
Net investment income
(loss)..................... (.12) (.09) (.01) (.09) (.06)
Net gains or losses on
securities (both realized
and unrealized)............ 2.25 3.03 (.09) 2.21 2.42
--------- ----------- ------ ------ ------
Total from investment
operations............... 2.13 2.94 (.10) 2.12 2.36
--------- ----------- ------ ------ ------
Less distributions:
Dividends from net
investment income.......... -- -- -- -- --
Distributions from capital
gains...................... (.43) (.02) -- (.43) --
--------- ----------- ------ ------ ------
Total distributions....... (.43) (.02) -- (.43) --
--------- ----------- ------ ------ ------
Net asset value, end of
period....................... $ 15.64 $ 13.94 $ 11.02 $ 15.63 $ 13.94
--------- ----------- ------ ------ ------
--------- ----------- ------ ------ ------
Total return (c).............. 15.7% 26.7% (.9)%(d) 15.6% 20.4%(e)
Net assets, end of period (in
thousands)................... $4,871 $1,720 $96 $807 $71
Ratio of expenses to average
daily net assets (f)......... 2.20% 2.24 % .09 (g) 2.19 % 2.24 %(h)
Ratio of net investment income
(loss) to average daily net
assets (f)................... (1.25)% (1.45 )% (.06 (g) (1.22 )% (1.57 )%(h)
Portfolio turnover rate
(excluding short-term
securities).................. 80.2% 48.8 % 5.0 % 80.2 % 48.8 %
Average commission rate on
common stock transactions
(i).......................... $ .1150 N/A N/A $ .1150 N/A
</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) Commencement of operations.
(c) 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 contingent deferred sales charges.
(d) Total return is presented for the period from September 16, 1994,
commencement of operations, to September 30, 1994.
(e) Total return is presented for the period from March 1, 1995, commencement
of operations, to September 30, 1995.
(f) The Fund's Distributor and Adviser voluntarily waived or absorbed $83,999
and $1,430 in expenses for the year ended September 30, 1995 and the period
ended September 30, 1994, respectively. If Class B shares had been charged
for these expenses, the ratio of expenses to average daily net assets would
have been 2.39% and .10%, respectively, and the ratio of net investment
income (loss) to average daily net assets would have been (1.60)% and
(.07)%, respectively. If Class C shares had been charged for these
expenses, the ratio of expenses to average daily net assets would have been
2.32% and the ratio of net investment income (loss) would have been
(1.65)%.
(g) Ratios presented for the period from September 16, 1994 to September 30,
1994 are not annualized as they are not indicative of anticipated results.
(h) Adjusted to an annual basis.
(i) Beginning in fiscal 1996, the Fund is required to disclose an average
brokerage commission rate. The rate is calculated by dividing the total
brokerage commissions paid on applicable purchases and sales of common
stock for the period by the total number of related shares purchased and
sold.
18
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Advantus Enterprise Fund, Inc.:
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments in securities, of the Advantus Enterprise
Fund, Inc. (the Fund) as of September 30, 1996 and the related statement of
operations for the year then ended, the statement of changes in net assets for
the two years then ended and the financial highlights for the two years then
ended and the period from September 16, 1994 to September 30, 1994. 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, 1996 and the results of its operations,
changes in its net assets and financial highlights, for the periods stated in
the first paragraph above, in conformity with generally accepted accounting
principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
November 1, 1996
19
<PAGE>
ADVANTUS ENTERPRISE FUND
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, 1996. Dividends for the 1996 calendar year will
be reported to you on Form 1099-Div in late January 1997. Shareholders should
consult a tax adviser on how to report these distributions for state and local
purposes.
CLASS A, CLASS B AND CLASS C
Income distribution--taxable as dividend income, 4.2% qualifying for deduction
by corporations.
<TABLE>
<CAPTION>
PAYABLE DATE PER SHARE
- -------------------------------------------------------------------------------------- -----------
<S> <C>
December 28, 1995..................................................................... $ .2296
-----------
-----------
</TABLE>
The distribution of $.2296 payable on December 28, 1995 represents
short-term capital gains (taxable as dividend income).
Capital gains distribution--taxable as long-term capital gains
<TABLE>
<CAPTION>
PAYABLE DATE PER SHARE
- -------------------------------------------------------------------------------------- -----------
<S> <C>
December 19, 1995..................................................................... $ .1922
June 12, 1996......................................................................... .0086
-----------
$ .2008
-----------
-----------
</TABLE>
20
<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 Advantus 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 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 savings 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.
GROUP INVESTMENT PLAN: This plan provides employers and employees with a
convenient means for investing in the funds through payroll deduction.
21
<PAGE>
TELEPHONE REDEMPTION: You may call us and redeem shares over the phone. The
proceeds will be sent by check to the address of record for the account. Amounts
over $1,000 may be wire transferred to your personal bank account. The
prevailing wire charge will be added to the withdrawal amount. To set this up,
please send a voided check from your bank. Depending on the performance of the
underlying investment options, the 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. manages eight mutual funds containing $346
million in assets in addition to $1.3 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
22
<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.48647 11-96
