<PAGE>
ENTERPRISE
ADVANTUS ENTERPRISE FUND, INC.
SEMI-ANNUAL REPORT TO SHAREHOLDERS DATED MARCH 31,2000
[ADVANTUS LOGO]
EQUITY
[COVER ART]
<PAGE>
ADVANTUS ENTERPRISE FUND
TABLE OF CONTENTS
PERFORMANCE UPDATE 2
INVESTMENTS IN SECURITIES 7
STATEMENT OF ASSETS AND LIABILITIES 10
STATEMENT OF OPERATIONS 11
STATEMENTS OF CHANGES IN NET ASSETS 12
NOTES TO FINANCIAL STATEMENTS 13
SHAREHOLDER SERVICES 18
<PAGE>
LETTER FROM THE PRESIDENT [PHOTO]
Dear Shareholder:
Americans are enjoying the longest period of economic expansion in U.S. history.
This period of growth, which began in March of 1992, recorded its ninth year of
uninterrupted growth in March. To date, the Federal Reserve's actions to slow
the nation's growth engine have not dramatically impacted the upward trend.
Despite the run-up in interest rates over the past year, housing starts and auto
sales, indicators of a robust economy, remain strong.
Around the globe we are seeing economic growth accelerate, albeit at a modest
pace. Asia is rapidly recovering from the economic debacle of the late 90s. The
Bank of Japan has kept interest rates near zero to further assist that country's
recovery. In Europe, the Central Bank raised rates to support a weak euro and
guard against inflation. Latin American economies, such as Brazil, are showing
signs of increasing strength (e.g., lower inflation, job creation). No country
comes close to the sustained economic vigor of the U.S., but many of the world's
economies are growing.
Volatility in the stock market was frequent and dramatic throughout the
six-months, with the wildest of the ride coming in early April, shortly after
this reporting period ended. The first calendar quarter of the new millennium
was a time of contrasts. For the first two months, the broad market was slightly
down, with the growth sector of technology rising and the value sectors of the
market falling. March was a reversal, with a strong rally in traditional value
stocks and a pullback in the technology arena, adding to the market tumult.
Technology, however, continues to drive the increased spending in businesses. As
tech spending increases, so does productivity.
Interest rates also showed a mixed picture. The Federal Reserve raised the Fed
Funds rate five times between June 1999 and March 2000. Each time only
.25 percent, a cumulative increase of 1.25 percent over this 10-month period.
However, longer maturity Treasury bond prices rose and their yields declined as
the U.S. Treasury used some of the budget surplus to begin buying back Treasury
bonds. Meanwhile, corporate bond yields increased.
In the pages that follow, your Fund's portfolio manager will give you his
insight on the Fund's performance for this reporting period. Also, we are
pleased to announce that you can now access your Advantus Funds data online
through the Advantus web site: www.advantusfunds.com. To learn how you can
access your Advantus Fund information through our internet site, call Advantus
Shareholder Services at 1-800-665-6005.
We value your business and want to make doing business with us as easy for you
as possible. Thank you for investing with Advantus.
Sincerely,
/s/ William N. Westhoff
William N. Westhoff, President
Advantus Funds
<PAGE>
ADVANTUS ENTERPRISE FUND
PERFORMANCE UPDATE
[PHOTO]
RICHARD W. WORTHING, CFA
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 capitalization
companies (i.e., companies
with a market capitalization
of less than $1.5 billion) at
the time of purchase. In
selecting equity securities,
the Fund invests in
securities that the
investment adviser believes
show sustainable earnings
growth potential and
improving profitability.
- Dividends paid quarterly.
- Capital gains distributions paid annually.
PERFORMANCE
For the six-month period ended March 31, 2000, the Advantus Enterprise Fund
returned the following for each class of shares currently offered:
<TABLE>
<S> <C>
CLASS A.......................... 60.21 PERCENT*
CLASS B.......................... 59.44 PERCENT*
CLASS C.......................... 59.48 PERCENT*
</TABLE>
The Fund's benchmark, the Russell 2000 Growth Index** returned 45.78 percent for
the same period.
PERFORMANCE ANALYSIS
The reporting period was a buoyant one for small-capitalization stocks, as
measured by the Russell 2000 Growth Index**, which advanced 45.78 percent for
the six-month period. The group's solid showing, as measured by the index, was
supported by optimism over small companies' profit outlook and by continued
improvement in the global economy, which aided riskier asset classes generally.
These stocks were, however, volatile, particularly in March, reflecting ongoing
interest-rate uncertainties and concerns over valuations on certain high-flying
Internet and NASDAQ technology stocks.
Performance was driven by the rally in small-cap stocks and by timely stock
selection, with its technology and communications holdings displaying particular
strength. A common theme surrounding our software holdings is that they all are
trying to help their customers create more efficient business models. For
example, as corporations increasingly rely on the Internet to enhance
efficiencies and decrease costs, a myriad of technology related industries are
positively impacted. Whether it is networking companies that provide the
infrastructure for everything else, or service and software companies, which
provide Web site development, the opportunities will continue to be enormous.
We also avoided a few sectors that were significant laggards to the index
returns. In particular our minimal investments in the basic industry and
financial services sectors enhanced relative performance. Both areas were
negatively impacted by anticipation of economic sluggishness and the rising
interest rate environment created by the Federal Reserve.
2
<PAGE>
OUTLOOK
We maintain a favorable outlook on the prospects for the small-cap group. This
is based on several factors, not the least of which is an increasingly vibrant
U.S. economy. The economy grew in the fourth quarter 1999 at its fastest clip
since the first quarter of 1984, and is projected to remain healthy while
outpacing growth of most foreign economies. Therefore, we anticipate that small
companies stand to enjoy significant longer-term revenue improvement, both in
absolute terms and compared to that of larger companies, given small companies'
heavily U.S.-biased customer bases (large U.S. companies, by contrast, typically
derive a substantial share of their revenues from foreign operations).
Another factor that stands to broadly support small caps is the ongoing trend of
takeovers of small companies by larger ones, a trend we believe will remain
strong, if not accelerate. Small companies hold special appeal to larger
companies looking to fulfill their business models in an increasingly
competitive global economy. By acquiring niche-type smaller companies - often at
a significant premium to small companies' publicly listed share prices - large
companies can develop their businesses in a timely and cost-effective manner.
Another reason we feel optimistic regarding small-cap stocks is their relatively
attractive valuations. Notwithstanding recent outperformance, small caps'
valuations currently range from reasonable to compelling compared to those on
large caps. Barring an unforeseen deterioration in global financial conditions,
and provided interest rates remain relatively stable - bond yields in fact
declined during the quarter, while inflation remained well-contained - this
should continue to draw investor interest to the group.
*Historical performance is not an indication of future performance. These
performance results do not reflect the impact of Class A's maximum 5.5 percent
front-end sales charge or Class B's maximum 5 percent contingent deferred sales
charge. If these charges were reflected, performance would be reduced.
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 those stocks from the Russell 2000 with
a greater than average growth orientation. The Russell 2000 is 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.
3
<PAGE>
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000
INVESTMENT IN ADVANTUS ENTERPRISE FUND,
RUSSELL 2000 GROWTH 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 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, 2000.
CLASS A AND B
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
AVERAGE ANNUAL TOTAL RETURN:
<TABLE>
<S> <C> <C>
Class A:
One year 59.05%
Five year 16.64%
Since inception (9/16/94) 16.34%
Class B:
One year 61.89%
Five year 16.78%
Since inception (9/16/94) 16.37%
</TABLE>
<TABLE>
<CAPTION>
RUSSELL 2000
CLASS A CLASS B GROWTH INDEX CPI
<S> <C> <C> <C> <C>
9/16/94 10,000 10,000 10,000 10,000
9/30/94 9,371 9,910 10,042 10,054
9/30/95 11,983 12,107 12,616 10,275
9/30/96 13,979 14,173 14,391 10,584
9/30/97 15,780 16,000 17,737 10,818
9/30/98 11,235 11,315 13,331 10,973
9/30/99 14,450 14,477 17,683 11,261
3/31/00 23,134 23,171 25,779 11,482
</TABLE>
4
<PAGE>
CLASS C
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
AVERAGE ANNUAL TOTAL RETURN:
<TABLE>
<S> <C> <C>
One year 66.82%
Five year 16.93%
Since inception (3/1/95) 17.12%
</TABLE>
<TABLE>
<S> <C> <C> <C>
Russell 2000
Class C Growth Index CPI
3/01/95 10,000 10,000 10,000
9/30/95 12,038 12,563 10,146
9/30/96 13,913 14,331 10,450
9/30/97 15,568 17,662 10,682
9/30/98 10,992 13,276 10,834
9/30/99 14,012 17,610 11,119
3/31/00 22,347 25,671 11,338
</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 5.5 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
invest in the index itself, nor can they invest in any fund which seeks to track
the performance of the index 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.
5
<PAGE>
TEN LARGEST STOCK HOLDINGS
<TABLE>
<CAPTION>
MARKET % OF STOCK
COMPANY SHARES VALUE PORTFOLIO
------- ------ ----------- ----------
<S> <C> <C> <C>
Manugistics Group, Inc................. 50,721 $ 2,548,730 3.6%
GaSonics International Corporation..... 54,186 2,148,814 3.1%
IntraNet Solutions, Inc................ 45,544 2,095,024 3.0%
ANADIGICS, Inc......................... 31,329 2,067,714 3.0%
Orbotech, Ltd.......................... 23,956 2,036,260 2.9%
Global Marine.......................... 72,764 1,846,386 2.6%
Peregrine Systems, Inc................. 27,396 1,837,244 2.6%
Cymer, Inc............................. 31,504 1,575,200 2.2%
Harbinger Corporation.................. 50,537 1,471,890 2.1%
Cytyc Corporation...................... 28,072 1,354,474 1.9%
----------- -------
$18,981,736 27.0%
=========== =======
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Cash and Other Assets/Liabilities 7.5%
Financial .9%
Transportation 1.8%
Consumer Staples 2.2%
Communication Services 3.8%
Energy 6.1%
Consumer Cyclical 6.5%
Health Care 14.0%
Technology 57.2%
</TABLE>
6
<PAGE>
ADVANTUS ENTERPRISE FUND
INVESTMENTS IN SECURITIES
MARCH 31, 2000
(UNAUDITED)
(Percentages of each investment category relate to total net assets.)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
------ ----------------
<C> <S> <C>
COMMON STOCK (92.5%)
COMMUNICATION SERVICES (3.8%)
Cellular (.8%)
9,143 Powertel, Inc. (b).............................. $ 632,581
----------------
Telecommunication (3.0%)
18,796 CTC Communications Group, Inc. (b)............... 801,179
8,723 Polycom, Inc. (b)................................ 690,753
15,721 Viatel, Inc. (b)................................. 788,998
----------------
2,280,930
----------------
CONSUMER CYCLICAL (6.5%)
Retail (3.0%)
4,704 Accrue Software, Inc. (b)....................... 215,428
7,700 Ames Department Stores (b)...................... 189,131
15,800 Ann Taylor Stores Corporation (b)............... 363,400
15,616 Marimba, Inc. (b)............................... 689,056
17,990 ValueVision International, Inc. (b)............. 744,336
2,400 Williams-Sonoma, Inc. (b)....................... 74,400
----------------
2,275,751
----------------
Service (3.5%)
32,098 Acxiom Corporation (b).......................... 1,067,258
17,759 Getty Images, Inc. (b).......................... 638,214
27,250 TeleTech Holdings, Inc. (b)..................... 940,125
----------------
2,645,597
----------------
CONSUMER STAPLES (2.2%)
Broadcasting (1.0%)
20,265 Cumulus Media, Inc. (b)......................... 291,309
43,232 Salem Communications Corporation (b)............ 516,082
----------------
807,391
----------------
Entertainment (1.2%)
36,990 American Classic Voyages Company (b)............ 931,686
----------------
ENERGY (6.1%)
Oil & Gas (6.1%)
9,979 BJ Services (b)................................. 737,199
72,764 Global Marine (b)............................... 1,846,386
<CAPTION>
MARKET
SHARES VALUE(A)
--------------------------------------------------------------------------
ENERGY--CONTINUED
<C> <S> <C>
11,000 Precision Drilling Corporation (b)(c)........... $ 367,125
500 Seacor Smit, Inc. (b)........................... 30,187
10,808 Smith International, Inc. (b)................... 837,620
16,789 Stone Energy Corporation (b).................... 826,858
----------------
4,645,375
----------------
FINANCIAL (.9%)
Investment Bankers/Brokers (.9%)
14,907 Reckson Service Industries (b).................. 655,908
----------------
HEALTH CARE (14.0%)
Biotechnology (6.1%)
2,525 Abgenix, Inc. (b)............................... 348,766
3,159 Affymetrix, Inc. (b)............................ 468,914
13,375 Gilead Sciences, Inc. (b)....................... 847,641
8,293 IDEC Pharmaceuticals Corporation (b)............ 814,787
15,121 Lynx Therapeutics, Inc. (b)..................... 449,850
7,517 Maxygen, Inc. (b)............................... 490,014
7,400 Medarex, Inc. (b)............................... 371,850
5,048 Millennium Pharmaceuticals, Inc. (b)............ 655,609
2,093 Protein Design Labs, Inc. (b)................... 166,393
----------------
4,613,824
----------------
Drugs (2.4%)
17,467 Medicis Pharmaceutical Corporation (b).......... 698,680
14,182 United Therapeutics Corporation (b)............. 1,102,651
----------------
1,801,331
----------------
Hospital Management (2.5%)
28,678 Province Healthcare Company (b)................. 820,908
22,010 Universal Health Services, Inc. (b)............. 1,078,490
----------------
1,899,398
----------------
</TABLE>
See accompanying notes to investments in securities.
7
<PAGE>
ADVANTUS ENTERPRISE FUND
INVESTMENTS IN SECURITIES - CONTINUED
<TABLE>
<CAPTION>
MARKET
SHARES VALUE(A)
--------------------------------------------------------------------------
HEALTH CARE--CONTINUED
<C> <S> <C>
Managed Care (1.2%)
62,036 Oxford Health Plan, Inc. (b).................... $ 946,049
----------------
Medical Products/Supplies (1.8%)
28,072 Cytyc Corporation (b)........................... 1,354,474
----------------
TECHNOLOGY (57.2%)
4,000 About.com, Inc. (b)............................. 352,500
15,168 Adaptive Broadband Corporation (b).............. 811,488
8,830 Alpha Industries, Inc. (b)...................... 838,850
31,329 ANADIGICS, Inc. (b)............................. 2,067,714
16,648 ANTEC Corporation (b)........................... 746,039
15,320 Aspect Development, Inc. (b).................... 986,225
11,395 AudioCodes, Ltd. (b)(c)......................... 1,143,773
25,199 BackWeb Technologies, Ltd. (b)(c)............... 866,216
8,854 Bluestone Software, Inc. (b).................... 298,823
19,432 Breakaway Solutions, Inc. (b)................... 884,156
6,755 Broadbase Software, Inc. (b).................... 538,711
19,125 Broadvision, Inc. (b)........................... 858,234
7,720 Business Objects SA (b)(c)...................... 768,140
7,898 Clarus Corporation (b).......................... 557,796
7,300 Coherent, Inc. (b).............................. 379,600
7,679 Cree Research, Inc. (b)......................... 866,767
31,504 Cymer, Inc. (b)................................. 1,575,200
12,452 Documentum, Inc. (b)............................ 971,256
20,411 DuPont Photomasks, Inc. (b)..................... 1,182,562
3,366 eGain Communications Corporation (b)............ 131,274
54,186 GaSonics International Corporation (b).......... 2,148,814
10,219 Gene Logic, Inc. (b)............................ 429,837
50,537 Harbinger Corporation (b)....................... 1,471,890
11,528 Interlink Electronics, Inc. (b)................. 1,099,483
45,544 IntraNet Solutions, Inc. (b).................... 2,095,024
<CAPTION>
MARKET
SHARES VALUE(A)
--------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
<C> <S> <C>
12,942 IONA Technologies PLC (b)(c).................... $ 957,708
50,721 Manugistics Group, Inc. (b)..................... 2,548,730
23,956 Orbotech, Ltd. (b)(c)........................... 2,036,260
30,658 PairGain Technologies, Inc. (b)................. 572,921
27,396 Peregrine Systems, Inc. (b)..................... 1,837,244
27,135 Photronics, Inc. (b)............................ 958,205
17,400 Pilot Network Services, Inc. (b)................ 575,288
3,757 Powerwave Technologies, Inc. (b)................ 469,625
9,440 QRS Corporation (b)............................. 710,360
12,700 Radiant Systems, Inc. (b)....................... 798,513
26,800 Santa Cruz Operations, Inc. (b)................. 251,250
21,718 SeaChange International, Inc. (b)............... 1,338,372
10,200 Spyglass, Inc. (b).............................. 790,978
36,598 Sybase, Inc. (b)................................ 743,397
17,759 Tekelec (b)..................................... 659,303
9,266 The Bisys Group, Inc. (b)....................... 616,189
28,318 The viaLink Company (b)......................... 934,494
9,355 Transwitch Corporation (b)...................... 899,249
30,500 Unify Corporation (b)........................... 623,344
12,714 USinternetworking, Inc. (b)..................... 492,668
4,290 VerticalNet, Inc. (b)........................... 583,440
----------------
43,467,910
----------------
TRANSPORTATION (1.8%)
Air Freight (1.8%)
26,440 Airborne Freight Corporation..................... 634,560
30,858 Eagle USA Airfreight, Inc. (b).................. 721,306
----------------
1,355,866
----------------
Total common stock (cost: $58,588,955)...................... 70,314,071
----------------
</TABLE>
See accompanying notes to investments in securities.
8
<PAGE>
ADVANTUS ENTERPRISE FUND
INVESTMENTS IN SECURITIES - CONTINUED
<TABLE>
<CAPTION>
MARKET
PRINCIPAL VALUE(A)
--------- -----------
<C> <S> <C> <C> <C>
SHORT-TERM SECURITIES (4.3%)
$ 844,970 Federated Money Market Obligations Trust - Prime Obligation Fund,
current rate 5.890%............................................... $ 844,970
1,230,000 U.S. Treasury Bill............................... 5.425% 04/20/00 1,226,573
1,245,000 U.S. Treasury Bill............................... 5.835% 06/08/00 1,231,944
-----------
Total short-term securities (cost: $3,303,121)..................... 3,303,487
-----------
Total investments in securities (cost: $61,892,076)(d)............. $73,617,558
===========
</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 8.1% of net assets in foreign securities as of March 31, 2000.
(d) At March 31, 2000 the cost of securities for federal income tax purposes was
$62,130,465. The aggregate unrealized appreciation and depreciation of
investments in securities based on this cost were:
<TABLE>
<S> <C>
Gross unrealized appreciation.......... $19,432,102
Gross unrealized depreciation.......... (7,945,009)
-----------
Net unrealized appreciation............ $11,487,093
===========
</TABLE>
9
<PAGE>
ADVANTUS ENTERPRISE FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investments in securities, at market
value - see accompanying schedule for
detailed listing
(identified cost: $61,892,076)........ $73,617,558
Receivable for Fund shares sold........ 1,290,337
Receivable for investment securities
sold.................................. 1,272,370
Accrued interest receivable............ 14,480
Other receivable....................... 5,381
----------
Total assets....................... 76,200,126
----------
LIABILITIES
Bank overdraft......................... 5,577
Payable for investment securities
purchased............................. 22,507
Payable for Fund shares redeemed....... 38,491
Payable to Adviser..................... 97,036
----------
Total liabilities.................. 163,611
----------
Net assets applicable to outstanding
capital stock......................... $76,036,515
==========
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....... $ 32,881
Additional paid-in capital........... 38,203,246
Accumulated net realized gains from
investments.......................... 26,074,906
Unrealized appreciation on
investments.......................... 11,725,482
----------
Total - representing net assets
applicable to outstanding capital
stock.............................. $76,036,515
==========
Net assets applicable to outstanding
Class A shares........................ $64,224,057
==========
Net assets applicable to outstanding
Class B shares........................ $10,396,553
==========
Net assets applicable to outstanding
Class C shares........................ $1,415,905
==========
Shares outstanding and net asset value
per share:
Class A - Shares outstanding
2,754,386............................ $ 23.32
==========
Class B - Shares outstanding
469,694.............................. $ 22.13
==========
Class C - Shares outstanding
63,997............................... $ 22.12
==========
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
ADVANTUS ENTERPRISE FUND
STATEMENT OF OPERATIONS
PERIOD FROM OCTOBER 1, 1999 TO MARCH 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
Investment income:
Interest............................. $ 111,094
Dividends............................ 6,847
----------
Total investment income.......... 117,941
----------
Expenses (note 4):
Investment advisory fee.............. 265,288
Rule 12b-1 fees - Class A............ 70,095
Rule 12b-1 fees - Class B............ 45,182
Rule 12b-1 fees - Class C............ 6,048
Administrative services fee.......... 37,200
Custodian fees....................... 3,275
Auditing and accounting services..... 7,732
Legal fees........................... 4,000
Directors' fees...................... 422
Registration fees.................... 16,000
Printing and shareholder reports..... 26,981
Insurance............................ 1,817
Other................................ 1,211
----------
Total expenses................... 485,251
----------
Less fees and expenses waived or
absorbed:
Class A Rule 12b-1 fees............ (28,038)
----------
Total net expenses............... 457,213
----------
Investment loss - net............ (339,272)
----------
Realized and unrealized gains on
investments:
Net realized gains on investments
(note 3)........................... 27,947,032
Net change in unrealized appreciation
or depreciation on investments..... 773,098
----------
Net gains on investments......... 28,720,130
----------
Net increase in net assets resulting
from operations...................... $28,380,858
==========
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
ADVANTUS ENTERPRISE FUND
STATEMENTS OF CHANGES IN NET ASSETS
PERIOD FROM OCTOBER 1, 1999 TO MARCH 31, 2000 AND YEAR ENDED SEPTEMBER 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
2000 1999
------------ ------------
<S> <C> <C>
Operations:
Investment loss - net................ $ (339,272) $ (508,486)
Net realized gain on investments..... 27,947,032 1,037,408
Net change in unrealized appreciation
or depreciation on investments..... 773,098 10,468,429
------------ ------------
Increase in net assets resulting
from operations.................. 28,380,858 10,997,351
------------ ------------
Capital share transactions (notes 4 and
5):
Proceeds from sales:
Class A............................ 28,475,769 13,658,724
Class B............................ 1,367,004 965,495
Class C............................ 306,348 209,571
Payments for redemption of shares:
Class A............................ (28,382,480) (14,679,306)
Class B............................ (1,225,761) (1,982,135)
Class C............................ (196,437) (385,371)
------------ ------------
Increase (decrease) in net assets
from capital share
transactions................... 344,443 (2,213,022)
------------ ------------
Total increase in net assets..... 28,725,301 8,784,329
Net assets at beginning of period...... 47,311,214 38,526,885
------------ ------------
Net assets at end of period............ $ 76,036,515 $ 47,311,214
============ ============
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
ADVANTUS ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000
(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 shares are subject to a higher Rule 12b-1 fee
than Class A shares. Both Class B and Class C shares automatically convert to
Class A shares at net asset value after a specified holding period. Such holding
periods decline as the amount of the purchase increases and range from 28 to
84 months after purchase for Class B shares and 40 to 96 months after purchase
for Class C shares. All three classes of shares have identical voting, dividend,
liquidation and other rights and the same terms and conditions, except that the
level of Rule 12b-1 fees charged differs between Class A, Class B and Class C
shares. Income, expenses (other than Rule 12b-1 fees) and realized and
unrealized gains or losses are allocated to each class of shares based upon its
relative net assets.
(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 in the financial statements. Actual
results could differ from those estimates.
INVESTMENTS IN SECURITIES
The Fund's net asset value is generally calculated as of the close of normal
trading on the New York Stock Exchange (typically 3:00 p.m. Central Time).
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.
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.
13
<PAGE>
ADVANTUS ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS - CONTINUED
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)
FEDERAL TAXES
The Fund's policy is to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to shareholders. Therefore, no income tax provision is required.
The Fund's policy is to make required minimum distributions prior to
December 31, in order to avoid federal excise tax.
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 and decrease additional paid-in capital by
$339,272.
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, 2000, purchases of securities and proceeds
from sales, other than temporary investments in short-term securities,
aggregated $75,658,619 and $78,206,467, 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
Minnesota Life Insurance Company (Minnesota Life). 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 (PFPC
Global Fund Services, formerly First Data Investor Services Group). 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
expenses pursuant to Rule 12b-1 under the Investment Company Act of 1940 (as
amended). The Fund pays Rule 12b-1 fees to Ascend Financial Services, Inc.
(Ascend), the underwriter of the Fund and wholly-owned subsidiary of Advantus
Capital, 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
service fee up to .25 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. Ascend is currently waiving the portion of Class A
Rule 12b-1 fees which exceeds, as a percentage of average daily net assets,
.15 percent. Ascend waived Class A Rule 12b-1 fees in the amount of $28,038 for
the period ended March 31, 2000.
14
<PAGE>
ADVANTUS ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS - CONTINUED
(4) EXPENSES AND RELATED PARTY TRANSACTIONS - (CONTINUED)
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 has entered into a shareholder and administrative services
agreement with Minnesota Life Insurance Company (Minnesota Life). Under this
agreement, the Fund pays an administrative services fee equal to $6,200 per
month to Minnesota Life for accounting, auditing, legal and other administrative
services which Minnesota Life provides. Prior to August 1, 1999, the
administrative services fee was $5,700 per month. In addition, for shareholder
services performed by Minnesota Life, the Adviser will pay Minnesota Life an
annual account servicing fee as agreed by the Adviser and Minnesota Life.
Advantus Capital directly incurs and pays the Fund's operating expenses and
the Fund in turn reimburses Advantus Capital.
As of March 31, 2000, Minnesota Life and subsidiaries and the directors and
officers of the Fund as a whole owned 2,228,411 Class A shares which represents
80.9 percent of the total outstanding Class A shares.
Sales charges received by Ascend for distributing the Fund's three classes
of shares amounted to $20,503.
Legal fees were paid to a law firm of which the Fund's secretary is a
partner in the amount of $3,225.
(5) CAPITAL SHARE TRANSACTIONS
Transactions in shares for the period from October 1, 1999 to March 31, 2000
and the year ended September 30, 1999 were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
----------------------- ------------------- -------------------
2000 1999 2000 1999 2000 1999
---------- ---------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Sold...................................... 1,361,360 949,425 61,800 73,948 14,528 15,871
Redeemed.................................. (1,354,998) (1,015,571) (59,757) (148,820) (9,027) (29,144)
---------- ---------- ------- -------- ------ -------
6,362 (66,146) 2,043 (74,872) 5,501 (13,273)
========== ========== ======= ======== ====== =======
</TABLE>
15
<PAGE>
ADVANTUS ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS - CONTINUED
(6) 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
OCTOBER 1,
1999 TO
MARCH 31, YEAR ENDED SEPTEMBER 30,
2000 ---------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995(A)
----------- ------- ------- ------- ------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 14.56 $ 11.32 $ 15.90 $ 15.94 $ 14.08 $ 11.03
------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment loss............................. (.25) (.14) (.13) (.04) (.05) (.04)
Net gains (losses) on securities (both realized
and unrealized)............................... 9.01 3.38 (4.45) 1.74 2.34 3.11
------- ------- ------- ------- ------- -------
Total from investment operations.............. 8.76 3.24 (4.58) 1.70 2.29 3.07
------- ------- ------- ------- ------- -------
Less distributions:
Distributions from net realized gains........... - - - (1.74) (.43) (.02)
------- ------- ------- ------- ------- -------
Total distributions........................... - - - (1.74) (.43) (.02)
------- ------- ------- ------- ------- -------
Net asset value, end of period.................... $ 23.32 $ 14.56 $ 11.32 $ 15.90 $ 15.94 $ 14.08
======= ======= ======= ======= ======= =======
Total return (c).................................. 60.21% 28.62% (28.81)% 12.88% 16.66% 27.87%
Net assets, end of period (in thousands).......... $64,224 $40,009 $31,844 $44,102 $38,722 $30,454
Ratio of expenses to average daily net
assets (d)(e)................................... 1.24%(f) 1.33% 1.27% 1.28% 1.31% 1.34%
Ratio of net investment income (loss) to average
daily net assets (d)(e)......................... (.89)%(f) (.97)% (.91)% (.32)% (.38)% (.48)%
Portfolio turnover rate (excluding short-term
securities)..................................... 124.2% 99.3% 71.1% 65.8% 80.2% 48.8%
</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 assume 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 $83,999
in expenses for the year ended September 30, 1995. If the Fund had been
charged for these expenses, the ratio of expenses to average daily net
assets would have been 1.75% for Class A shares, 2.39% for Class B shares
and 2.32% for Class C shares. The ratio of net investment income (loss) to
average daily net assets would have been (.89)% for Class A shares,(1.60)%
for Class B shares and (1.65)% for Class C shares.
(e) The Fund's Distributor voluntarily waived $28,038, $44,303, $68,536,
$74,325 and $68,785 in Class A Rule 12b-1 fees for the period ended March
31, 2000, and the years ended September 30, 1999, 1998, 1997 and 1996,
respectively. If the Class A shares had been charged for these fees, the
ratio of expenses to average daily net assets would have been 1.34%, 1.45%,
1.44%, 1.48% and 1.51%, respectively, and the ratio of net investment
income (loss) to average daily net assets would have been (.99)%, (1.09)%,
(1.08)%, (.52)% and (.58)%, respectively.
(f) Adjusted to an annual basis.
16
<PAGE>
ADVANTUS ENTERPRISE FUND
NOTES TO FINANCIAL STATEMENTS - CONTINUED
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------
PERIOD FROM
OCTOBER 1,
1999 TO
MARCH 31, YEAR ENDED SEPTEMBER 30,
2000 -------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995(A)
----------- ------- ------- ------- ------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 13.88 $10.88 $15.42 $15.64 $13.94 $11.02
------- ------ ------ ------ ------ ------
Income from investment operations:
Net investment loss............................. (.31) (.26) (.24) (.18) (.12) (.09)
Net gains (losses) on securities (both realized
and unrealized)............................... 8.56 3.26 (4.30) 1.70 2.25 3.03
------- ------ ------ ------ ------ ------
Total from investment operations.............. 8.25 3.00 (4.54) 1.52 2.13 2.94
------- ------ ------ ------ ------ ------
Less distributions:
Distributions from net realized gains........... - - - (1.74) (.43) (.02)
------- ------ ------ ------ ------ ------
Total distributions........................... - - - (1.74) (.43) (.02)
------- ------ ------ ------ ------ ------
Net asset value, end of period.................... $ 22.13 $13.88 $10.88 $15.42 $15.64 $13.94
======= ====== ====== ====== ====== ======
Total return (c).................................. 59.44% 27.57% (29.44)% 11.89% 15.65% 26.71%
Net assets, end of period (in thousands).......... $10,397 $6,491 $5,903 $7,683 $4,871 $1,720
Ratio of expenses to average daily net
assets (d)(e)................................... 2.09%(f) 2.18% 2.14% 2.18% 2.20% 2.24%
Ratio of net investment income (loss) to average
daily net assets (d)(e)......................... (1.74)%(f) (1.82)% (1.77)% (1.60)% (1.25)% (1.45)%
Portfolio turnover rate (excluding short-term
securities)..................................... 124.2% 99.3% 71.1% 65.8% 80.2% 48.8%
<CAPTION>
CLASS C
------------------------------------------------------------------------
PERIOD FROM
OCTOBER 1, PERIOD FROM
1999 TO MARCH 1,
MARCH 31, YEAR ENDED SEPTEMBER 30, 1995(B) TO
2000 ---------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1999 1998 1997 1996 1995
----------- ------- ------- ------- ------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $13.87 $10.87 $15.41 $15.63 $13.94 $11.58
------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment loss............................. (.31) (.27) (.26) (.23) (.09) (.06)
Net gains (losses) on securities (both realized
and unrealized)............................... 8.56 3.27 (4.28) 1.75 2.21 2.42
------ ------ ------ ------ ------ ------
Total from investment operations.............. 8.25 3.00 (4.54) 1.52 2.12 2.36
------ ------ ------ ------ ------ ------
Less distributions:
Distributions from net realized gains........... - - - (1.74) (.43) -
------ ------ ------ ------ ------ ------
Total distributions........................... - - - (1.74) (.43) -
------ ------ ------ ------ ------ ------
Net asset value, end of period.................... $22.12 $13.87 $10.87 $15.41 $15.63 $13.94
====== ====== ====== ====== ====== ======
Total return (c).................................. 59.48% 27.48% (29.40)% 11.89% 15.58% 20.38%
Net assets, end of period (in thousands).......... $1,416 $ 812 $ 780 $1,133 $ 807 $ 71
Ratio of expenses to average daily net
assets (d)(e)................................... 2.09%(f) 2.18% 2.14% 2.18% 2.19% 2.24%(f)
Ratio of net investment income (loss) to average
daily net assets (d)(e)......................... (1.74)% (1.82)% (1.78)% (1.75)% (1.22)% (1.57)%(f)
Portfolio turnover rate (excluding short-term
securities)..................................... 124.2% 99.3% 71.1% 65.8% 80.2% 48.8%
</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 assume 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 $83,999
in expenses for the year ended September 30, 1995. If the Fund had been
charged for these expenses, the ratio of expenses to average daily net
assets would have been 1.75% for Class A shares, 2.39% for Class B shares
and 2.32% for Class C shares. The ratio of net investment income (loss) to
average daily net assets would have been (.89)% for Class A shares,(1.60)%
for Class B shares and (1.65)% for Class C shares.
(e) The Fund's Distributor voluntarily waived $28,038, $44,303, $68,536,
$74,325 and $68,785 in Class A Rule 12b-1 fees for the period ended March
31, 2000, and the years ended September 30, 1999, 1998, 1997 and 1996,
respectively. If the Class A shares had been charged for these fees, the
ratio of expenses to average daily net assets would have been 1.34%, 1.45%,
1.44%, 1.48% and 1.51%, respectively, and the ratio of net investment
income (loss) to average daily net assets would have been (.99)%, (1.09)%,
(1.08)%, (.52)% and (.58)%, respectively.
(f) Adjusted to an annual basis.
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 may apply.
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 share 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 twelve 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.
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 a check 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 DIVIDEND 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 may move money from one Advantus account to any other
Advantus account you own (with identical registrations within the same share
class) just by calling our toll-free number. The Telephone Exchange privilege
will automatically be established unless otherwise indicated on the Account
Application. Telephone Exchange may be changed (added/deleted) at any time by
submitting a request in writing.
SYSTEMATIC EXCHANGE: You may move a set amount of money monthly or quarterly
from one Advantus Fund to another Advantus Fund (with identical registrations
within the same share class) to diversify your investment portfolio and take
advantage of "dollar-cost averaging".
AUTOMATIC PAYMENT OF INSURANCE PREMIUMS: You may automatically pay your
Minnesota Life 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, if any.
AUTOMATIC INVESTMENT PLAN: This special purchase plan enables 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 monthly, semi-monthly or quarterly from
your checking or savings account.
IRAS, OTHER QUALIFIED PLANS: You can use the Advantus Family of Funds for your
Traditional, Roth or Education Individual Retirement Account or other qualified
plans including: SEP IRA's, SIMPLE IRA's, Profit Sharing, 401(k) Money Purchase
or Defined Benefit plans.
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. Wire transfers are for
amounts over $500. The prevailing wire charge will be added to the withdrawal
amount. The Telephone Redemption privilege will automatically be established
unless otherwise indicated on the Account Application. Telephone Redemption may
be changed (added/deleted) at any time by submitting a request in writing. To
have the redemption automatically deposited into your checking account, please
send a voided check
18
<PAGE>
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'll receive written confirmation of every investment you
initiate 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 information and
assistance directly from Advantus Shareholder Services, call 1-800-665-6005.
Advantus Account Representatives are available Monday through Friday from 7:30
a.m. to 5:15 p.m. Central Time. Our voice response system is available 24 hours,
seven days a week. This system allows you to access current net asset values,
account balances and recent account activity.
INTERNET ADDRESS: www.AdvantusFunds.com
HOW TO INVEST
You can invest in one or more of the eleven Advantus Funds through a local
Registered Representative of Ascend Financial Services, Inc., 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) or visit
www.AdvantusFunds.com.
MINIMUM INVESTMENTS: Your initial investment in any of the Advantus Funds can
be as small as $25 when you use our 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. (For the Advantus International Balanced Fund, Inc., the
sub-adviser, Templeton Investment Counsel, Inc., selects the Fund's
investments.)
Advantus Capital Management, Inc. manages twelve mutual funds containing $3.7
billion in assets in addition to $10.9 billion in assets for other clients.
Advantus Capital's seasoned portfolio managers average more than 14 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
Advantus Real Estate Securities Fund
19
<PAGE>
THIS REPORT HAS BEEN PREPARED FOR SHAREHOLDERS. THIS MAY BE USED AS SALES
LITERATURE IN
CONNECTION WITH THE OFFER OR SALE OF THE ADVANTUS ENTERPRISE FUND
IF PRECEDED OR ACCOMPANIED BY (A) THE CURRENT PROSPECTUS FOR THE
ADVANTUS ENTERPRISE FUND, AND (B) THE CURRENT
ADVANTUS MUTUAL FUND PERFORMANCE REPORT.
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. PRESORTED STANDARD
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. 5-2000
