Supplement Dated October 21, 1998 to the Prospectus Dated January 31,
1998
ADVANTUS International Balanced Fund, Inc.
Reorganization of Current Transfer Agent
The Minnesota Mutual Life Insurance Company (the "Company") currently
serves as transfer agent for the Advantus Funds. Advantus Capital
Management, Inc., the investment adviser to the Advantus Funds, is a wholly-
owned subsidiary of the Company. Effective October 1, 1998, the Company has
reorganized into a mutual insurance holding company structure and changed its
name to Minnesota Life Insurance Company ("Minnesota Life"). As a result of
the Plan, the Company, as Minnesota Life, will continue its corporate
existence as a stock life insurance company. Minnesota Life is a third tier
subsidiary of a newly-organized mutual insurance holding company, Minnesota
Mutual Companies, Inc.
New Transfer Agent and Shareholder Procedures
Effective October 26, 1998, First Data Investor Services Group, Inc.
("First Data") will replace Minnesota Life as transfer agent to the Advantus
Funds. Minnesota Life will continue to serve as the Advantus Funds'
Shareholder Servicing Agent. Purchase orders, including account applications
in the case of new investors, and written redemption requests, in the form
described in the prospectus, may be sent directly to the Fund at the
following address:
First Data Investor Services Group, Inc.
Advantus Funds Group
P.O. Box 9767
Providence, Rhode Island 02940-5059
Signed written redemption requests may also be submitted to First Data by Fax
at 1-508-871-3560. All purchase and redemption orders will be effected at
the price next determined following receipt by First Data.
Telephone Transactions and Redemptions
All telephone transaction requests should continue to be directed to the
Advantus Shareholder Services division of Minnesota Life at 1-800-665-6005.
The maximum amount which may be redeemed by telephone is increased from
$25,000 to $50,000.
Exchange and Telephone Transfer of Fund Shares
The number of exchanges which may be made in a calendar year without
charge is increasing from four to twelve. A $7.50 service charge will
continue to be imposed on each exchange and/or telephone transfer in excess
of twelve.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
F. 52770 10-1998
Redemption of Fund Shares - Signature Guarantee
The redemption amount requiring a signature guarantee is increased from
$25,000 to $50,000. No signature guarantee is required if the redemption
proceeds are less than $50,000. A signature guarantee is required for
redemption proceeds of $50,000 or more. Signature guarantees must be
originals and may not be submitted by Fax.
Fees and Expenses
The fee table and shareholder expense example appearing on page 5 of the
prospectus are amended as follows:
<TABLE>
<CAPTION>
Class A Class B Class C
<S> <C> <C> <C>
Shareholder Transaction Expenses
Maximum Sales Load Imposed on Purchases
(as a percentage of offer price) 5.00% 0.00% 0.00%
Maximum Deferred Sales Load
(as a percentage of redemption proceeds) 0.00% 5.00% 0.00%
Sales Load Imposed on Reinvested Dividends 0.00% 0.00% 0.00%
Exchange Fees
On first twelve exchanges each year $0 $0 $0
On each additional exchange $7.50 $7.50 $7.50
Annual Fund Operating Expenses
(as a percentage of average net assets)
Investment Advisory Fees 0.90% 0.90% 0.90%
Rule 12b-1 Fees (After Expenses Waived)* 0.20% ** 1.00% 1.00%
Other Expenses 0.75% 0.75% 0.75%
Total Fund Operating Expenses (After Expenses Waived)** 1.85% 2.65% 2.65%
</TABLE>
* A long-term shareholder may pay distribution fees which exceed the
maximum sales charge.
** The Fund has adopted a Plan of Distribution pursuant to Rule 12b-1
which provides for the payment to Ascend Financial of a distribution fee
equal to an annual rate of .30% of average daily net assets attributable to
Class A shares of the Fund. Ascend Financial is currently waiving that
portion of distribution fee which exceeds, as a percentage of average daily
net assets attributable to Class A shares, .20%. It is Ascend Financial's
present intention to waive distribution fees at such level during the current
fiscal year (ending September 30), but it reserves the right to cease such
waiver, in whole or in part, at any time. If the Fund were charged for these
expenses, the ratio of total Fund operating expenses to average daily net
assets would be 1.95% for Class A shares.
Shareholder Expense Example
An investor would pay the following expenses on a $1,000 investment
assuming (1) 5% annual return and (2) redemption at the end of each time
period.
<TABLE>
<CAPTION>
Year Redeemed Class A Class B Class C
<S> <C> <C> <C>
1 $ 68 $ 77 $ 27
3 105 117 82
5 145 156 141
10 256 270* 279**
</TABLE>
An investor would pay the following expenses on the same investment in
Class B shares, assuming no redemption:
<TABLE>
<CAPTION>
Year Redeemed Class B
<S> <C>
1 $ 27
3 82
5 141
10 270*
</TABLE>
* Reflects conversion of Class B shares to Class A shares (which pay
lower ongoing expenses) approximately seven years after purchase.
** Reflects conversion of Class C shares to Class A shares (which pay
lower ongoing expenses) approximately eight years after purchase.
