<PAGE>
[LOGO]
Semi-Annual Report to Shareholders
Advantus Enterprise Fund
March 31, 1998
<PAGE>
ADVANTUS ENTERPRISE FUND
TABLE OF CONTENTS
PERFORMANCE UPDATE 2
INVESTMENTS IN SECURITIES 6
STATEMENT OF ASSETS AND LIABILITIES 9
STATEMENT OF OPERATIONS 10
STATEMENTS OF CHANGES IN NET ASSETS 11
NOTES TO FINANCIAL STATEMENTS 12
SHAREHOLDER SERVICES 18
<PAGE>
LETTER FROM THE PRESIDENT [PHOTO]
Dear Shareholders:
Investors experienced a positive financial environment with moderate economic
growth and low inflation throughout the six-month reporting period. Fears of
inflation in our economy have dissipated as negative economic events in Asia
unfolded and took on global implications earlier in the reporting period.
The "Asian Flu" severely affected several Far Eastern currencies and stock
markets, leaving a trail of bankruptcies, uncertainties, and fears in its wake.
In fact, a "flight to quality" poured assets into U.S. markets, particularly to
large capitalization stocks and also to the bond market, which is a popular
destination for investors during periodic flights to quality.
Broadly speaking, small capitalization stocks have shown positive results this
reporting period. Small market cap growth stocks, as measured by the Russell
2000 Growth Index,* returned 2.7 percent for the six-month period. This return
is reflective of the asset class, which has lagged the double-digit results
associated with large capitalization stocks. Keep in mind that comparisons
between small and large cap stocks are like comparing "apples to oranges." Each
asset class has its own characteristics, volatility factors, as well as benefits
and risks for investors.
As investors, we all enjoy "market watching." We have witnessed the financial
markets change, sometimes significantly, because of actual events or because of
mere perceptions in those markets. Keeping a long-range view of investing is
important because it smoothes out the highs and lows. We believe that investors
derive the greatest benefit by maintaining a long-range perspective on
investing. The investment professionals at Advantus Capital Management continue
to put their money management expertise to work on your behalf. We appreciate
your continued participation in the Advantus Funds and urge you to maintain a
long-term investment perspective.
Sincerely,
[SIGNATURE]
Robert E. Hunstad, President
Advantus Funds
*The Russell 2000 Growth Index contains stock from the Russell 2000 with a
greater than average growth orientation. The Russell 2000 are the 2,000 smallest
companies in the Russell 3000. The Russell 3000 is an unmanaged index of 3,000
common stocks which represents approximately 98 percent of the U.S. market.
<PAGE>
ADVANTUS ENTERPRISE FUND
PERFORMANCE UPDATE
[LOGO]
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
For the six-month period ended March 31, 1998, the Advantus Enterprise Fund
returned the following for each class of shares currently offered:
<TABLE>
<S> <C>
Class A...................... .8
percent*
Class B...................... .3
percent*
Class C...................... .3
percent*
</TABLE>
The Fund's benchmark index, the Russell 2000 Growth Index,** returned 2.7
percent for the same period.
In prior reporting periods, the Wilshire Midcap Index+ was used as the Fund's
benchmark. The current benchmark, the Russell 2000 Growth Index,** better fits
our stated investment objective than did the Wilshire Midcap Index.+
PORTFOLIO ANALYSIS
The two calendar quarters that make up this six-month reporting period have been
earmarked with disparity. The Fund's return at the end of the fourth quarter,
1997 was -8.99 percent.* The return at the end of the first quarter, 1998 was
10.71 percent.* Early in the reporting period, the market reacted to the turmoil
of the Asian currency crisis, dropping oil prices and a questionable holiday
selling season. Later, the market confirmed that holiday sales were good for
retailers, oil prices stopped their free fall, and technology still had solid
prospects; albeit these prospects are still several quarters away. Even with oil
prices firming, the Energy sector was the worst performing sector at -19
percent. The Technology sector at -4.3 percent also lagged.
Strong performers in the Fund include some companies that provide services to a
broad array of businesses. Acxiom Corporation provides data to the financial
service, retail sales and insurance industries. Mastech Corporation and Gartner
Group Incorporated provide technical staffing and technology consulting services
respectively to information technology departments of various sized-businesses.
These companies had limited exposure to Asia and were not caught in the "Asian
Flu" epidemic that hurt many companies. Other strong performers included Borders
Group Incorporated (book retailers), Check Point Software Technology (internet
security software), Fairfield Communities, Inc. (vacation interval sales), and
Kaydon Corporation (precision parts and instruments).
Our approach to investing has led us to add some names in the technology area
which have shown good growth and are selling at good valuations while at the
same time trimming some of our semi-conductor equipment stocks. We added several
securities in the Energy sector, which afforded us the opportunity to buy some
of the faster growing companies in that sector at better values. Retail stocks
have had a good run, but we have been reducing some of our exposure there and
probably will continue to do so.
2
<PAGE>
ADVANTUS ENTERPRISE
FUND
MARCH 31, 1998
Earnings disappointments and concerns about the impact of the Asian slowdown
negatively impacted many stocks. Stocks like Danka Business Systems PLC
(worldwide distributor of photocopiers and other business machines) and CKS
Group Incorporated (marketing communications services) had significant earnings
disappointments due to poorly executed corporate strategies. Danka is no longer
held in the Fund. DuPont Photomasks Incorporated (photomask manufacturer) and
Integrated Process Equipment (CMP equipment) have seen a temporary deceleration
in their market space due to Asian currency issues but we feel their prospects
are good and continue to hold these in our Fund.
OUTLOOK
Although performance has been volatile over the last six months, we remain
optimistic for the remainder of the year. Low interest rates and low inflation
coupled with a strong Europe and positive reforms in Asia and Japan will likely
help to set the economic stage for continuing growth throughout 1998. The
relative growth characteristics of many of the small companies we hold and their
exposure to the United States should bode well for the Fund going forward.
*Historical performance is 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 Growth Index contains stock from the Russell 2000 with a
greater than average growth orientation. The Russell 2000 are the 2,000 smallest
companies in the Russell 3000. The Russell 3000 is an unmanaged index of 3,000
common stocks which represents approximately 98 percent of the U.S. market.
+The Wilshire Midcap Index is comprised of the bottom 750 companies of the
largest 1,250 U.S. domicile companies as measured by market capitalization.
3
<PAGE>
ADVANTUS ENTERPRISE
FUND
MARCH 31, 1998
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL
$10,000 INVESTMENT IN ADVANTUS ENTERPRISE FUND,
RUSSELL 2000 GROWTH INDEX, 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, the Russell 2000 Growth 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 March 31, 1998.
CLASS A AND B
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL
RETURN:
<S> <C> <C> <C> <C> <C>
Class A:
One year 28.3%
Since inception (9/16/94) 14.2%
Class B:
One year 28.8%
Since inception (9/16/94) 14.3%
Class A Class B Wilshire Midcap Index Russell 2000 Growth Index CPI
9/16/94 $10,000 $10,000 $10,000 $10,000 $10,000
9/30/94 $9,419 $9,910 $9,942 $10,042 $10,128
9/30/95 $12,044 $12,107 $12,439 $12,616 $10,351
9/30/96 $14,051 $14,173 $14,443 $14,391 $10,662
9/30/97 $15,861 $16,000 $19,147 $17,737 $10,899
3/31/98 $15,980 $16,052 $20,200 $18,217 $10,946
</TABLE>
CLASS C
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL
RETURN:
<S> <C> <C> <C> <C>
One year 33.9%
Since inception (3/1/95) 15.6%
Class C Wilshire Midcap Index CPI Russell 2000 Growth Index
3/1/95 $10,000 $10,000 $10,000 $10,000
9/30/95 $12,038 $12,157 $10,146 $12,563
9/30/96 $13,913 $14,115 $10,450 $14,331
9/30/97 $15,568 $18,712 $10,682 $17,662
3/31/98 $15,618 $19,741 $10,728 $18,141
</TABLE>
4
<PAGE>
ADVANTUS ENTERPRISE
FUND
MARCH 31, 1998
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 professional's investment advice. Individuals cannot buy even an
unmanaged index fund without incurring some charges and expenses.
Historical performance is 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.
TEN LARGEST STOCK HOLDINGS
<TABLE>
<CAPTION>
MARKET % OF STOCK
COMPANY SHARES VALUE PORTFOLIO
- ------------------------------ ------ ----------- -----------
<S> <C> <C> <C>
Kaydon Corporation............ 42,400 $ 1,733,100 3.4%
Borders Group Incorporated.... 42,440 1,445,612 2.8%
MSC Industrial Direct
Company...................... 25,200 1,365,525 2.7%
Sola International, Inc....... 30,900 1,280,419 2.5%
Fairfield Communities, Inc.... 57,500 1,268,594 2.5%
Gartner Group Incorporated.... 33,800 1,263,275 2.5%
United Rentals, Inc........... 45,700 1,188,200 2.3%
Acxiom Corporation............ 46,200 1,183,875 2.3%
J Ray McDermott Holdings,
Inc.......................... 27,400 1,154,225 2.3%
Eagle USA Airfreight, Inc..... 42,400 1,144,800 2.2%
----------- ---
$13,027,625 25.5%
----------- ---
----------- ---
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Cash and Other
Assets/Liabilities 6.5%
Communication Services 1.3%
Transportation 2.2%
Financial 4.2%
Energy 5.6%
Consumer Staples 5.8%
Basic Materials 5.8%
Capital Goods 10.9%
Health Care 14.2%
Consumer Cyclical 20.6%
Technology 22.9%
</TABLE>
5
<PAGE>
ADVANTUS ENTERPRISE FUND
INVESTMENTS IN SECURITIES
MARCH 31, 1998
(UNAUDITED)
(Percentages of each investment category relate to total net assets.)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(a)
- ---------- -----------
<C> <S> <C>
COMMON STOCK (93.5%)
BASIC MATERIALS (5.8%)
Agriculture Products (1.6%)
34,000 NCO Group Incorporated (b)....................... $ 850,000
-----------
Chemicals (4.2%)
22,087 Cambrex Corporation.............................. 1,112,633
20,425 McWhorter Technologies Incorporated (b).......... 517,008
16,430 Valspar Corporation.............................. 644,877
-----------
2,274,518
-----------
CAPITAL GOODS (10.9%)
Electrical Equipment (2.1%)
43,790 Advanced Lighting Technologies (b)............... 1,133,066
-----------
Engineering/Construction (2.2%)
45,700 United Rentals, Inc. (b)......................... 1,188,200
-----------
Machinery (3.2%)
42,400 Kaydon Corporation............................... 1,733,100
-----------
Metal Fabrication (1.3%)
29,624 Shaw Group Incorporated (b)...................... 738,748
-----------
Waste Management (2.1%)
17,400 American Disposal Services, Inc. (b)............. 656,850
28,100 Newpark Resources Incorporated (b)............... 512,825
-----------
1,169,675
-----------
COMMUNICATION SERVICES (1.3%)
Cellular (1.3%)
36,700 LCC International Incorporated (b)............... 729,412
-----------
CONSUMER CYCLICAL (20.6%)
Building Materials (1.1%)
30,800 The Maxim Group, Inc. (b)........................ 579,425
-----------
<CAPTION>
MARKET
SHARES VALUE(a)
- ---------- -----------
<C> <S> <C>
CONSUMER CYCLICAL--CONTINUED
Distribution Durables (2.5%)
25,200 MSC Industrial Direct Company (b)................ $ 1,365,525
-----------
Leisure (1.5%)
48,100 American Skiing Corporation (b).................. 805,675
-----------
Lodging-Hotel (.5%)
19,164 Extended Stay America (b)........................ 281,471
-----------
Retail (6.2%)
42,440 Borders Group Incorporated (b)................... 1,445,612
3,800 Kohl's Inc (b)................................... 310,650
19,200 Pacific Sunwear of California (b)................ 796,800
16,500 Stage Stores, Inc. (b)........................... 851,812
-----------
3,404,874
-----------
Service (6.6%)
46,200 Acxiom Corporation (b)........................... 1,183,875
35,500 CKS Group Incorporated (b)....................... 667,844
28,900 Copart Incorporated (b).......................... 484,075
57,500 Fairfield Communities, Inc. (b).................. 1,268,594
-----------
3,604,388
-----------
Textiles (2.2%)
21,900 Nautica Enterprises, Inc. (b).................... 673,425
35,800 Tropical Sportswear International (b)............ 505,675
-----------
1,179,100
-----------
CONSUMER STAPLES (5.8%)
Broadcasting (2.3%)
8,278 Panamsat Corporation............................. 503,923
17,100 United Video Satellite Group (b)................. 726,750
-----------
1,230,673
-----------
</TABLE>
See accompanying notes to investments in securities.
6
<PAGE>
ADVANTUS ENTERPRISE FUND
INVESTMENTS IN SECURITIES--CONTINUED
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(a)
- ---------- -----------
CONSUMER STAPLES--CONTINUED
<C> <S> <C>
Restaurants (.9%)
31,186 Rainforest Cafe Incorporated (b)................. $ 467,790
-----------
Service (2.1%)
32,900 Corrections Corporation of America (b)........... 1,122,712
-----------
Tobacco (.5%)
19,525 General Cigar Holdings, Inc. (b)................. 298,977
-----------
ENERGY (5.6%)
Oil & Gas (5.6%)
7,300 Apache Corporation............................... 268,275
9,000 Falcon Drilling Company (b)...................... 266,625
27,400 J Ray McDermott Holdings, Inc. (b)............... 1,154,225
13,800 Petroleum Geo-Services (c)....................... 819,375
5,700 Tidewater........................................ 249,731
13,700 Trico Marine Services, Inc. (b).................. 288,556
-----------
3,046,787
-----------
FINANCIAL (4.2%)
Banks (.4%)
3,600 GBC Bancorp...................................... 240,525
-----------
Insurance (2.4%)
8,700 Life Re Corporation.............................. 641,625
13,500 Partnerre Ltd (c)................................ 663,188
-----------
1,304,813
-----------
Investment Bankers/Brokers (1.4%)
10,800 T. Rowe Price Associates......................... 760,050
-----------
HEALTH CARE (14.2%)
Biotechnology (.7%)
10,300 Agouron Pharmaceuticals, Inc. (b)................ 390,113
-----------
Drugs (.7%)
23,200 Cygnus, Inc. (b)................................. 382,800
-----------
<CAPTION>
MARKET
SHARES VALUE(a)
- ---------- -----------
<C> <S> <C>
HEALTH CARE--CONTINUED
Hospital Management (1.9%)
23,733 Sunrise Assisted Living Incorporated (b)......... $ 1,062,052
-----------
Managed Care (1.5%)
4,700 Ameripath, Inc. (b).............................. 86,656
23,883 Concentra Managed Care, Inc. (b)................. 734,402
-----------
821,058
-----------
Medical Products/Supplies (8.5%)
15,800 Amerisource Health Corporation (b)............... 949,975
1,000 BioReliance Corporation (b)...................... 16,500
34,700 Hanger Orthopedic Group (b)...................... 583,394
30,900 Sola International, Inc. (b)..................... 1,280,419
29,000 Sybron International Corporation (b)............. 757,625
30,500 Total Renal Care Holdings, Inc (b)............... 1,016,027
3,700 Young Innovations, Inc........................... 57,350
-----------
4,661,290
-----------
Special Services (.9%)
15,600 Curative Health Services (b)..................... 519,675
-----------
TECHNOLOGY (22.9%)
Technology (22.9%)
14,200 Bisys Group, Inc. (b)............................ 500,550
10,000 Check Point Software Technology (b)(c)........... 456,875
12,800 Ciena Corporation (b)............................ 545,600
32,800 Computer Products, Inc. (b)...................... 764,650
4,400 Dassault Systemes SA (c)......................... 173,800
40,800 DII Group Incorporated (b)....................... 877,200
</TABLE>
See accompanying notes to investments in securities.
7
<PAGE>
ADVANTUS ENTERPRISE FUND
INVESTMENTS IN SECURITIES--CONTINUED
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(a)
- ---------- -----------
TECHNOLOGY--CONTINUED
<C> <S> <C>
12,500 DuPont Photomasks Incorporated (b)............... $ 540,625
33,800 Gartner Group Incorporated (b)................... 1,263,275
16,300 HNC Software Incorporated (b).................... 613,288
14,900 Integrated Circuit Systems (b)................... 311,969
21,600 Integrated Process Equipment (b)................. 434,700
12,176 Mastech Corporation (b).......................... 620,596
28,400 Maximus Incorporated (b)......................... 850,225
21,000 May & Speh Incorporated (b)...................... 301,875
15,500 National Data Corporation........................ 644,219
10,000 Orbotech Ltd (b)(c).............................. 323,750
12,500 Peapod Incorporated (b).......................... 92,578
9,700 Photronics Incorporated (b)...................... 271,600
<CAPTION>
MARKET
SHARES VALUE(a)
- ---------- -----------
<C> <S> <C>
TECHNOLOGY--CONTINUED
4,700 Power-One Inc (b)................................ $ 79,900
11,202 Sapient Corporation (b).......................... 530,695
11,300 Saville Systems ADR (b)(c)....................... 579,125
10,000 Uniphase Corporation (b)......................... 420,625
21,900 Xylan Corporation (b)............................ 533,813
20,800 Zebra Technologies Corporation (b)............... 800,800
-----------
12,532,333
-----------
TRANSPORTATION (2.2%)
Air Freight (2.1%)
42,400 Eagle USA Airfreight, Inc. (b)................... 1,144,800
-----------
Airlines (.1%)
1,500 Ryanair Holdings PLC-ADR (b)(c).................. 55,500
-----------
Total common stock
(cost: $36,942,259).......................................... 51,079,125
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
- ----------
<C> <S> <C> <C> <C>
SHORT-TERM SECURITIES (6.9%)
$1,360,000 US Treasury Bill................................. 5.17% 05/21/98 1,350,498
2,465,000 US Treasury Bill................................. 5.15% 06/25/98 2,435,548
-----------
Total short-term securities (cost: $3,786,160).................... 3,786,046
-----------
Total investments in securities (cost: $40,728,419)(d)............ $54,865,171
-----------
-----------
</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 5.6% of the net assets in foreign securities as of March 31,
1998.
(d) At March 31, 1998 the cost of securities for federal income tax purposes was
$40,881,602. The aggregate unrealized appreciation and depreciation of
investments in securities based on this cost were:
<TABLE>
<S> <C>
Gross unrealized appreciation.......... $15,710,863
Gross unrealized depreciation.......... (1,727,294)
-----------
Net unrealized appreciation............ $13,983,569
-----------
-----------
</TABLE>
8
<PAGE>
ADVANTUS ENTERPRISE FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1998
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investments in securities, at market
value--see accompanying schedule for
detailed listing
(identified cost: $40,728,419)........ $54,865,171
Cash in bank on demand deposit......... 5,703
Receivable for Fund shares sold........ 13,226
Receivable for investment securities
sold.................................. 207,629
Dividends receivable................... 9,477
Organizational costs (note 5).......... 15,417
-----------
Total assets....................... 55,116,623
-----------
LIABILITIES
Payable for investment securities
purchased............................. 402,533
Payable for Fund shares redeemed....... 2,261
Payable to Adviser..................... 81,466
-----------
Total liabilities.................. 486,260
-----------
Net assets applicable to outstanding
capital stock......................... $54,630,363
-----------
-----------
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)...................... $ 34,317
Additional paid-in capital........... 41,161,213
Accumulated net realized losses from
investments......................... (701,919)
Unrealized appreciation on
investments......................... 14,136,752
-----------
Total--representing net assets
applicable to outstanding capital
stock............................. $54,630,363
-----------
-----------
Net assets applicable to outstanding
Class A shares........................ $45,224,382
-----------
-----------
Net assets applicable to outstanding
Class B shares........................ $ 8,211,855
-----------
-----------
Net assets applicable to outstanding
Class C shares........................ $ 1,194,126
-----------
-----------
Shares outstanding and net asset value
per share:
Class A--Shares outstanding
2,823,501........................... $ 16.02
-----------
-----------
Class B--Shares outstanding
530,953............................. $ 15.47
-----------
-----------
Class C--Shares outstanding 77,247... $ 15.46
-----------
-----------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
ADVANTUS ENTERPRISE FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTH PERIOD ENDED MARCH 31, 1998
(UNAUDITED)
<TABLE>
<S> <C>
Investment income:
Interest............................. $ 45,409
Dividends............................ 37,148
---------
Total investment income.......... 82,557
---------
Expenses (note 4):
Investment advisory fee.............. 199,790
Distribution fees--Class A........... 62,243
Distribution fees--Class B........... 36,787
Distribution fees--Class C........... 5,474
Administrative service fee........... 21,800
Amortization of organizational
costs............................... 5,441
Custodian fees....................... 123
Auditing and accounting services..... 8,670
Legal fees........................... 2,298
Directors' fees...................... 343
Registration fees.................... 17,594
Printing and shareholder reports..... 17,000
Insurance............................ 2,571
Other................................ 9,354
---------
Total expenses................... 389,488
Less fees and expenses waived or
absorbed:
Class A distribution fees.......... (37,891)
---------
Total net expenses............... 351,597
---------
Investment loss--net............. (269,040)
---------
Realized and unrealized gains on
investments:
Net realized gains on investments
(note 3)............................ 177,310
Net change in unrealized appreciation
or depreciation on investments...... 545,907
---------
Net gains on investments......... 723,217
---------
Net increase in net assets resulting
from operations....................... $ 454,177
---------
---------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
ADVANTUS ENTERPRISE FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTH PERIOD ENDED MARCH 31, 1998 AND YEAR ENDED SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
----------- -----------
<S> <C> <C>
Operations:
Investment loss--net................. $ (269,040) $ (226,022)
Net realized gain (loss) on
investements........................ 177,310 (879,229)
Net change in unrealized appreciation
or depreciation on investments...... 545,907 7,134,727
----------- -----------
Increase in net assets resulting
from operations................. 454,177 6,029,476
----------- -----------
Distributions to shareholders from net
realized gains on investments:
Class A.............................. -- (4,409,566)
Class B.............................. -- (610,188)
Class C.............................. -- (111,341)
----------- -----------
Total distributions.............. -- (5,131,095)
----------- -----------
Capital share transactions (notes 4 and
6):
Proceeds from sales:
Class A............................ 1,963,917 3,424,384
Class B............................ 1,338,039 2,970,730
Class C............................ 153,443 583,065
Proceeds from issuance of shares as a
result of reinvested dividends:
Class A............................ -- 3,124,576
Class B............................ 183 608,807
Class C............................ -- 102,187
Payments for redemption of shares:
Class A............................ (1,239,818) (1,748,809)
Class B............................ (855,626) (1,070,175)
Class C............................ (101,784) (375,526)
----------- -----------
Increase in net assets from
capital share transactions...... 1,258,354 7,619,239
----------- -----------
Total increase in net assets..... 1,712,531 8,517,620
Net assets at beginning of period...... 52,917,832 44,400,212
----------- -----------
Net assets at end of period............ $54,630,363 $52,917,832
----------- -----------
----------- -----------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
ADVANTUS ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1998
(UNAUDITED)
(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. The Fund's
investment objective is to seek the long-term accumulation of capital.
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 for which
no sale was reported on that date are valued on the basis of the last current
bid price, by an independent pricing service or at a price deemed best to
reflect fair value as quoted by dealers who make markets in these securities.
When market quotations are not readily available, securities are valued at fair
value as determined in good faith under procedures adopted by the Board of
Directors. Short-term securities are valued at market.
12
<PAGE>
ADVANTUS ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--(CONTINUED)
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 by $269,040 and decrease additional paid-in capital
by $269,040.
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 period ended March 31, 1998, purchases of securities and proceeds
from sales, other than temporary investments in short-term securities aggregated
$16,627,037 and $14,432,356, respectively.
(4) EXPENSES AND RELATED PARTY TRANSACTIONS
The Fund has an investment advisory agreement with Advantus Capital
Management, Inc. (Advantus Capital or the Adviser), a wholly-owned subsidiary of
MIMLIC Management. Under the agreement, Advantus Capital manages the Fund's
assets and provides research, statistical and advisory services and pays related
office rental and executive expenses and salaries. In addition, 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.
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 Ascend Financial Services,
Inc. (Ascend), formerly known as MIMLIC Sales Corporation, 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
13
<PAGE>
ADVANTUS ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(4) EXPENSES AND RELATED PARTY TRANSACTIONS--(CONTINUED)
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. Ascend is currently
waiving the portion of Class A distribution fees which exceeds, as a percentage
of average daily net assets, .15 percent. Prior to January 30, 1998 the portion
exceeding .10 percent of average daily net assets was waived. Ascend waived
Class A distribution fees in the total amount of $37,891 for the period ended
March 31, 1998.
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, equal to $3,700, to Minnesota
Mutual for accounting, auditing, legal and other administrative services which
Minnesota Mutual provides. Prior to February 1, 1998 the administrative services
fee was $3,600.
Advantus Capital directly incurs and pays the above operating expenses and
the Fund in turn reimburses Advantus Capital.
As of March 31, 1998, Minnesota Mutual and subsidiaries and the directors
and officers of the Fund as a whole owned 2,225,146 Class A shares which
represents 78.8 percent of the total outstanding Class A shares.
Sales charges received by Ascend for distributing the Fund's three classes
of shares amounted to $67,480.
Legal fees were paid to a law firm of which the Fund's secretary is a
partner in the amount of $2,298.
(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 period from October 1, 1997 to March 31, 1998
and the year ended September 30, 1997 were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
--------------------- -------------------- --------------------
1998 1997 1998 1997 1998 1997
--------- ---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Sold................................................ 132,370 245,582 92,379 221,245 10,722 42,231
Issued for reinvested distributions................. -- 228,685 19 45,958 -- 7,841
Redeemed............................................ (82,822) (129,287) (59,613) (80,568) (6,975) (28,172)
--------- ---------- --------- --------- --------- ---------
49,548 344,980 32,785 186,635 3,747 21,900
--------- ---------- --------- --------- --------- ---------
--------- ---------- --------- --------- --------- ---------
</TABLE>
14
<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 PERIOD FROM
OCTOBER 1, SEPTEMBER 16,
1997 TO YEAR ENDED SEPTEMBER 30, 1994 (B) TO
MARCH 31, ------------------------------- SEPTEMBER 30,
1998 1997 1996 1995(A) 1994
------------ --------- --------- --------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 15.90 $ 15.94 $ 14.08 $ 11.03 $ 11.12
------------ --------- --------- --------- -------
Income from investment operations:
Net investment income (loss).......... (.07) (.04) (.05) (.04) --
Net gains or losses on securities
(both realized and unrealized)....... 0.19 1.74 2.34 3.11 (.09)
------------ --------- --------- --------- -------
Total from investment operations.... 0.12 1.70 2.29 3.07 (.09)
------------ --------- --------- --------- -------
Less distributions:
Dividends from net investment
income............................... -- -- -- -- --
Distributions from capital gains...... -- (1.74) (.43) (.02) --
------------ --------- --------- --------- -------
Total distributions................. -- (1.74) (.43) (.02) --
------------ --------- --------- --------- -------
Net asset value, end of period.......... $ 16.02 $ 15.90 $ 15.94 $ 14.08 $ 11.03
------------ --------- --------- --------- -------
------------ --------- --------- --------- -------
Total return (c)........................ .76% 12.9% 16.7% 27.9% (.8)%
Net assets, end of period (in
thousands)........................... $ 45,224 $ 44,102 $ 38,722 $ 30,454 $ 12,964
Ratio of expenses to average daily net
assets (d)........................... 1.26%(f) 1.28% 1.31% 1.34% .05%(e)
Ratio of net investment income (loss) to
average daily net assets (d)......... (.93) (f) (.32)% (.38)% (.48)% (.02)%(e)
Portfolio turnover rate (excluding
short-term securities)............... 30.43% 65.8% 80.2% 48.8% 5.0%
Average commission rate on stock
transactions (g)..................... $ .0566 $ .0915 $ .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 or contingent deferred sales
charges. For periods less than one year, total return presented has not been
annualized.
(d) The Fund's Distributor and Adviser voluntarily waived or absorbed $37,891,
$74,325, $68,785, $83,999 and $1,430 in expenses for the period ended March
31, 1998, the years ended September 30, 1997, 1996 and 1995 and the period
ended September 30, 1994, respectively. If the Fund had been charged for
these expenses, the ratio of expenses to average daily net assets would have
been 1.44%, 1.48%, 1.51%, 1.75% and .06% for Class A shares, respectively.
The ratio of net investment income (loss) to average daily net assets would
have been (1.11)%, (.52)%, (.58)%, (.89)% and (.03)% for Class A shares,
respectively.
(e) Ratios presented for the period from September 16, 1994 to September 30,
1994 are not annualized as they are not indicative of anticipated results.
(f) Adjusted to an annual basis.
(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 stocks for
the period by the total number of related shares purchased and sold.
15
<PAGE>
ADVANTUS ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS--CONTINUED
(7) FINANCIAL HIGHLIGHTS--(CONTINUED)
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------
PERIOD FROM PERIOD FROM
OCTOBER 1, SEPTEMBER 16,
1997 TO YEAR ENDED SEPTEMBER 30, 1994 (B) TO
MARCH 31, --------------------------------- SEPTEMBER 30,
1998 1997 1996 1995(A) 1994
------------ --------- --------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 15.42 $ 15.64 $ 13.94 $ 11.02 $ 11.12
------------ --------- --------- ----------- ------
Income from investment operations:
Net investment income (loss).......... (.13) (.18) (.12) (.09) (.01)
Net gains or losses on securities
(both realized and unrealized)....... 0.18 1.70 2.25 3.03 (.09)
------------ --------- --------- ----------- ------
Total from investment operations.... 0.05 1.52 2.13 2.94 (.10)
------------ --------- --------- ----------- ------
Less distributions:
Dividends from net investment
income............................... -- -- -- -- --
Distributions from capital gains...... -- (1.74) (.43) (.02) --
------------ --------- --------- ----------- ------
Total distributions................. -- (1.74) (.43) (.02) --
------------ --------- --------- ----------- ------
Net asset value, end of period.......... $ 15.47 $ 15.42 $ 15.64 $ 13.94 $ 11.02
------------ --------- --------- ----------- ------
------------ --------- --------- ----------- ------
Total return (c)........................ .32% 11.9% 15.7% 26.7% (.9)%
Net assets, end of period (in
thousands)............................ $ 8,212 $ 7,683 $ 4,871 $ 1,720 $ 96
Ratio of expenses to average daily net
assets (d)............................ 2.14%(f) 2.18% 2.20% 2.24% .09%(e)
Ratio of net investment income (loss) to
average daily net assets (d).......... (1.81) (f) (1.60)% (1.25)% (1.45)% (.06)%(e)
Portfolio turnover rate (excluding
short-term securities)................ 30.43% 65.8% 80.2% 48.8% 5.0%
Average commission rate on stock
transactions (g)...................... $ .0566 $ .0915 $ .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 or contingent deferred sales
charges. For periods less than one year, total return presented has not been
annualized.
(d) The Fund's Adviser voluntarily absorbed $43,566 and $8,124 in expenses for
the year ended September 30, 1995 and the period ended September 30, 1994,
respectively. If the Fund had been charged for these expenses, the ratio of
expenses to average daily net assets would have been 2.39% and .10% for
Class B shares, respectively, and 2.32% for Class C shares. The ratio of net
investment income (loss) to average daily net assets would have been (1.60)%
and (.07)% for Class B shares, respectively and (1.65)% for Class C shares.
(e) Ratios presented for the period from September 16, 1994 to September 30,
1994 are not annualized as they are not indicative of anticipated results.
(f) Adjusted to an annual basis.
(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 stocks for
the period by the total number of related shares purchased and sold.
16
<PAGE>
ADVANTUS ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS--CONTINUED
<TABLE>
<CAPTION>
CLASS C
-----------------------------------------------------
PERIOD FROM PERIOD FROM
OCTOBER 1, YEAR ENDED SEPTEMBER MARCH 1,
1997 TO 30, 1995 (B) TO
MARCH 31, ---------------------- SEPTEMBER 30,
1998 1997 1996 1995
------------ --------- ----------- ---------------
Net asset value, beginning of period.... $ 15.41 $ 15.63 $ 13.94 $ 11.58
<S> <C> <C> <C> <C>
------------ --------- ----------- ------
Income from investment operations:
Net investment income (loss).......... (.13) (.23) (.09) (.06)
Net gains or losses on securities
(both realized and unrealized)....... 0.18 1.74 2.21 2.42
------------ --------- ----------- ------
Total from investment operations.... 0.05 1.51 2.120 2.36
------------ --------- ----------- ------
Less distributions:
Dividends from net investment
income............................... -- -- -- --
Distributions from capital gains...... -- (1.74) (.43) --
------------ --------- ----------- ------
Total distributions................. -- (1.74) (.43) --
------------ --------- ----------- ------
Net asset value, end of period.......... $ 15.46 $ 15.41 $ 15.63 $ 13.94
------------ --------- ----------- ------
------------ --------- ----------- ------
Total return (c)........................ .32% 11.9% 15.6% 20.4%
Net assets, end of period (in
thousands)............................ $ 1,194 $ 1,133 $ 807 $ 71
Ratio of expenses to average daily net
assets (d)............................ 2.14%(f) 2.18% 2.19% 2.24%(f)
Ratio of net investment income (loss) to
average daily net assets (d).......... (1.81) (f) (1.75)% (1.22)% (1.57)%(f)
Portfolio turnover rate (excluding
short-term securities)................ 30.43% 65.8% 80.2% 48.8%
Average commission rate on stock
transactions (g)...................... $ .0566 $ .0915 $ .1150 N/A
</TABLE>
17
<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 each calendar year without incurring a
transaction charge. Thereafter, there will be a $7.50 transaction charge for
each additional exchange 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 EXCHANGE: You can move money from one Advantus account to any other
Advantus account you own (with identical registrations within the same class)
just by calling our toll free number. The Telephone Exchange and Telephone
Redemption privilege will automatically be established unless otherwise
indicated on the Account Application. Telephone Exchange and Redemption may be
changed (added/deleted) at any time by submitting a request in writing or by
completing a Service Request Form.
SYSTEMATIC EXCHANGE: You can move a set amount of money monthly from one
Advantus Fund to another Advantus Fund (with identical registrations within the
same class) 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 from 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: 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.) 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
Traditional or Roth Individual Retirement Account or other qualified plan
including: SEP IRA's, SIMPLE IRA's, 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.
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 or wire
transferred to your bank of record for the account.
18
<PAGE>
Wire transfers are for amounts over $500. The prevailing wire charge will be
added to the withdrawal amount. The Telephone Exchange and Telephone Redemption
privilege will automatically be established unless otherwise indicated on the
Account Application. Telephone Exchange and Redemption may be changed
(added/deleted) at any time by submitting a request in writing or by completing
a Service Request Form. To have the redemption automatically deposited into your
checking account, 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. Some limitations apply,
please refer to the prospectus for details.
ACCOUNT UPDATES: You will receive written confirmation of every investment you
initiate (monthly statements for your Money Market account) and quarterly
statements to help you track all of your Advantus Fund investments and annual
tax statements. Semi-annual 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 personal information
and assistance directly from Advantus Shareholder Services, call
(1-800-665-6005). Advantus Account Representatives are available Monday through
Friday from 8 a.m. to 4:45 p.m. Central Time. Our voice response system is
available from 7 a.m. to 3 a.m. Central Time Monday through Friday, and 8 a.m.
to 5 p.m. on Saturday. This system allows you to access current net asset values
and account balances.
HOW TO INVEST
You can invest in one or more of the ten Advantus Funds through a local
Registered Representative of Ascend Financial Services, Inc. (formerly known as
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. To find a Registered Representative near you, call the toll-free
service line (1-800-665-6005).
MINIMUM INVESTMENTS: Your initial investment in any of the Advantus Funds can
be as small as $25 when you use the Automatic 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 twelve mutual funds containing
$2.7 billion in assets in addition to $2.1 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
Advantus Venture Fund
Advantus Index 500 Fund
19
<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]
ASCEND FINANCIAL SERVICES, INC.,
SECURITIES DEALER, MEMBER NASD/SIPC
400 ROBERT STREET NORTH
ST. PAUL, MN 55101-2098
1-800-AFS-1838
(1-800-237-1838)
<PAGE>
ASCEND FINANCIAL SERVICES, INC. BULK RATE
400 ROBERT STREET NORTH U.S. POSTAGE PAID
ST. PAUL, MN 55101-2098 ST. PAUL, MN
PERMIT NO. 3547
ADDRESS SERVICE REQUESTED
F.48646 Rev. 5-1998
