<Page>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-7815
Advantus Index 500 Fund, Inc.
(Exact name of registrant as specified in charter)
400 Robert Street North
St. Paul, Minnesota 55101-2098
(Address of principal executive offices) (Zip code)
Eric J. Bentley, Esq.
400 Robert Street North
St. Paul, Minnesota 55101-2098
(Name and address of agent for service)
Registrant's telephone number, including area code:
(651) 665-3500
Date of fiscal year end: July 31
Date of reporting period: July 31, 2003
<Page>
ITEM 1. REPORT TO STOCKHOLDERS.
Filed herewith.
<Page>
ADVANTUS EQUITY FUNDS
[ADVANTUS(TM) CAPITAL MANAGEMENT LOGO]
ANNUAL REPORT TO SHAREHOLDERS
DATED JULY 31, 2003
ADVANTUS CORNERSTONE FUND, INC.
A LARGE COMPANY VALUE FUND
ADVANTUS ENTERPRISE FUND, INC.
A SMALL COMPANY GROWTH FUND
ADVANTUS HORIZON FUND, INC.
A LARGE COMPANY GROWTH FUND
ADVANTUS INDEX 500 FUND, INC.
A LARGE COMPANY INDEX FUND
ADVANTUS REAL ESTATE SECURITIES FUND, INC.
A REAL ESTATE - RELATED SECURITIES FUND
ADVANTUS VENTURE FUND, INC.
A SMALL COMPANY VALUE FUND
CUT DOWN PAPERWORK, NOT TREES
ADVANTUS NOW OFFERS E-DELIVERY OF PROSPECTUSES, ANNUAL AND SEMI-ANNUAL REPORTS.
TO FIND OUT MORE, CALL ADVANTUS SHAREHOLDER SERVICES AT (800) 665-6005.
<Page>
ADVANTUS FIXED INCOME AND BLENDED FUNDS AND ADVANTUS EQUITY FUNDS
PROSPECTUS SUPPLEMENT DATED AUGUST 20, 2003 TO THE ADVANTUS FIXED INCOME AND
BLENDED FUNDS PROSPECTUS DATED JANUARY 31, 2003 AS SUPPLEMENTED APRIL 24, 2003,
JUNE 18, 2003 AND AUGUST 8, 2003 AND TO THE ADVANTUS EQUITY FUNDS PROSPECTUS
DATED NOVEMBER 29, 2002, AS SUPPLEMENTED FEBRUARY 3, 2003, APRIL 24, 2003,
JUNE 18, 2003 AND AUGUST 8, 2003
I. The portfolio manager information for the bond, Money Market and Mortgage
Securities Funds which appears in the table on page 24 of the Advantus
Fixed Income and Blended Funds Prospectus is amended to read as follows:
<Table>
<Caption>
PORTFOLIO MANAGER PRIMARY PORTFOLIO BUSINESS EXPERIENCE DURING
FUND AND TITLE MANAGER SINCE PAST FIVE YEARS
Bond Christopher R. Sebald August 14, 2003 Senior Vice President and Lead
Portfolio Manager Portfolio Manager, Total Return
Fixed Income, Advantus Capital,
since August, 2003; Senior Vice
President and Portfolio manager,
AEGON USA Investment Management,
2000 through July 2003; Director
of Portfolio Management,
GMAC-RFC, January 1998 through
July 2000
Money Market Tom Houghton August 18, 2003 Vice President and Portfolio
Portfolio Manager Manager, Total Return Fixed
Income, Advantus Capital, since
August 2003; Senior Investment
Officer, Advantus Capital, April
2002 to August 2003; Senior
Securities Analyst, Public
Corporate Bonds, Advantus
Capital, July 2001 through March
2002; Senior Investment Officer,
Public Corporate Bonds, Advantus
Capital, July 1999 to June 2001;
Head of Fixed Income Trading,
Advantus Capital, January 1998 to
June 1999.
Mortgage Securities Christopher R. Sebald August 14, 2003 Senior Vice President and Lead
Portfolio Manager Portfolio Manager, Total Return
Fixed Income, Advantus Capital,
since August, 2003; Senior Vice
President and Portfolio manager,
AEGON USA Investment Management,
2000 through July 2003; Director
of Portfolio Management,
GMAC-RFC, January 1998 through
July 2000
</Table>
II. The portfolio manager information for the Cornerstone Fund which appears on
page 31 of the Advantus Equity Funds Prospectus is amended to read as
follows:
<Table>
<Caption>
PORTFOLIO MANAGER PRIMARY PORTFOLIO BUSINESS EXPERIENCE DURING
FUND AND TITLE MANAGER SINCE PAST FIVE YEARS
Cornerstone Matthew T. Norris July 21, 2003 Portfolio Manager with Waddell &
Portfolio Manager Reed Ivy Investment Company since
July 2003; Portfolio Manager from
January 2000 to June 2003, and
Analyst from December 1997 to
January 2000, with Advantus
Capital.
</Table>
Investors should retain this supplement for future reference.
F. 59559 8-2003
<Page>
ADVANTUS EQUITY FUNDS
TABLE OF CONTENTS
<Table>
PERFORMANCE UPDATES
Cornerstone Fund 3
Enterprise Fund 8
Horizon Fund 13
Index 500 Fund 19
Real Estate Securities Fund 23
Venture Fund 29
INVESTMENTS IN SECURITIES
Cornerstone Fund 34
Enterprise Fund 39
Horizon Fund 44
Index 500 Fund 47
Real Estate Securities Fund 64
Venture Fund 67
FINANCIAL STATEMENTS
Statements of Assets and Liabilities 78
Statements of Operations 80
Statements of Changes in Net Assets 82
Notes to Financial Statements 88
INDEPENDENT AUDITORS' REPORT 118
FEDERAL INCOME TAX INFORMATION (UNAUDITED) 119
DIRECTORS AND EXECUTIVE OFFICERS 123
SHAREHOLDER SERVICES 125
</Table>
<Page>
LETTER FROM THE PRESIDENT
[PHOTO]
Dear Shareholders:
Economic recovery has been a long road. Economic growth dropped below trend
nearly three years ago and has not yet FULLY recovered despite external
assistance. The Federal Reserve has pumped an unprecedented amount of monetary
stimulus into the economy by easing interest rates thirteen times over 2-1/2
years. The federal government has also done its part to pump some fiscal octane
into the country's economic engine. The latest federal tax package was the Jobs
and Growth Tax Relief Reconciliation Act of 2003 signed into law on May 28,
2003. Improvements are underway with the economy still growing, but at a rate
significantly less than expected over the long-term trend.
Over this reporting period, we have seen the S&P 500 Index*, a broad index of
core large equities, return 10.64 percent for the year ended July 31, 2003. The
NASDAQ Composite Index**, including many small and mid-cap stocks, returned
32.91 percent for the same period. Whether as a result of better market
psychology or lower interest rates, the equity market looked very favorable in
the first half of 2003.
In the fixed income market, the yield curve has become steeper with low interest
rates on the short end, but the longer end reflects signs of growth and an
improving economy. For the year ended July 31, 2003, corporate bonds
outperformed Treasuries, and mortgage securities significantly lagged both.
(Lehman Brothers Credit Corporate Securities Index*** 11.30 percent, Lehman
Brothers Treasury Securities Index+ 4.54 percent, and Lehman Brothers
Mortgage-backed Securities Index++ 2.57 percent).
We expect the Federal Reserve to remain accommodative until consistent
improvements in growth and employment are reported. We expect moderate growth
and improving equity market performance. As growth emerges, we feel that fixed
income performance may become more challenging.
1
<Page>
In April 2003, Advantus Capital Management, Inc. (Advantus Capital) and certain
companies affiliated with Advantus Capital entered into a Strategic Alliance
Agreement and a related Purchase Agreement with Waddell & Reed Financial, Inc.
(W&R), a leading U.S. mutual fund firm, its affiliate, Waddell & Reed Ivy
Investment Company (WRIICO), and certain other companies affiliated with W&R.
Under these agreements, Advantus Capital agreed to sell to WRIICO its assets
related to the Advantus Funds. Advantus Capital has also recommended to the
Board of Directors of the Advantus Funds that each Advantus Fund be merged into
an existing or newly formed mutual fund managed by WRIICO in either Ivy Funds,
Inc. (a Maryland corporation) or Ivy Funds (a Massachusetts business trust), and
the Board of Directors has approved each Fund's merger subject to approval of
the shareholders of the Fund. It is currently anticipated that shareholders will
receive a proxy statement/prospectus with detailed information regarding this
proposal in early October. If you have any questions regarding the proxy, please
call your financial advisor. Your response to the proxy is important, so please
vote.
Sincerely,
/s/ Dianne Orbison
Dianne Orbison
President, Advantus Equity Funds
*The S&P 500 Index is a broad, unmanaged index of 500 common stocks which are
representative of the U.S. stock market overall.
**The NASDAQ Composite Index is a broad based capitalization-weighted index of
all NASDAQ National Market and SmallCap Stocks.
***The Lehman Brothers Credit Corporate Securities Index is a broad index of
publicly issued U.S. corporate and specified foreign debentures and secured
notes that meet the specified maturity, liquidity, and quality requirements. To
qualify, bonds must be SEC registered.
+The Lehman Brothers Treasury Securities Index is a broad index of public
obligations of the U.S. Treasury with a remaining maturity of one year or more.
++The Lehman Brothers Mortgage-Backed Securities Index is an unmanaged benchmark
composite which includes all fixed-rate securities backed by mortgage pools of
the Government National Mortgage Association (GNMA), Federal Home Loan Mortgage
Corporation (FHLMC) and Federal National Mortgage Association (FNMA).
2
<Page>
ADVANTUS CORNERSTONE FUND
PERFORMANCE UPDATE
PERFORMANCE
The Fund's performance for the year ended July 31, 2003 for each class of shares
outstanding is as follows:
<Table>
Class A 7.23 percent*
Class B 6.55 percent*
Class C 6.49 percent*
</Table>
This compares to the Fund's benchmark, the Russell 1000 Value Index**, which
returned 10.75 percent for the same period.
DURING THE PERIOD FROM AUGUST 1, 2002 THROUGH APRIL 30, 2003, THE FUND WAS
MANAGED BY ADVANTUS CAPITAL MANAGEMENT, INC. DURING THE BALANCE OF THE YEAR
COVERED BY THIS REPORT, FROM MAY 1, 2003 THROUGH JULY 31, 2003, THE FUND WAS
MANAGED BY WADDELL & REED IVY INVESTMENT COMPANY. SEPARATE DISCUSSIONS OF FUND
PERFORMANCE DURING EACH PERIOD ARE PROVIDED BELOW.
PERFORMANCE ANALYSIS AUGUST 1, 2002 - APRIL 30, 2003
DISCUSSION BY ADVANTUS CAPITAL MANAGEMENT, INC.
The Cornerstone Fund's performance during the nine months ended April 30, 2003
was attributable primarily to individual stock selections.
Over the period from August 1, 2002 through April 30, 2003, our fundamental
analysis and risk management tools minimized the potentially negative effects
found in Consumer Staple, Industrial, Basic Material and Utility companies.
The Fund's Class A shares returned 0.15% (before the impact of sales load) for
the nine months ended April 30, 2003, and underperformed the Fund's benchmark
index, the Russell 1000 Value Index**, which returned 1.24% for the same period.
The Fund's performance was positively affected by superior stock selection
within Major Banks, Consumer Staples, Electric Utilities, Basic Materials,
Energy and REITs. Strong performers for the period included US Bancorp, Nabors
Industries, Home Depot, Clear Channel, Oracle, and Wachovia. The Fund's
performance was adversely affected by missing some better performing
Telecommunications names, and by owning overweights in LSI Logic, HCA, CSX and
Merck.
Overall contributions to performance from sector allocations were small. The
Fund was adversely affected by underweighting Financials, and by overweighting
Transportation and Industrials. These allocations were offset by positive
contributions to performance from overweights in Information Technology,
Consumer Staples and Energy.
3
<Page>
PERFORMANCE ANALYSIS MAY 1, 2003 - JULY 31, 2003
DISCUSSION BY WADDELL & REED IVY INVESTMENT COMPANY
MATTHEW T. NORRIS, CFA
PORTFOLIO MANAGER
The stock market came to life in the past three months. The market responded to
the successful outcome to the military action in Iraq, the continued easing of
interest rates by the Federal Reserve and the passage of tax cut legislation by
Congress. We believe that most of the market movement since mid-May has been
reflective of massive monetary and fiscal stimulus policies and the unfolding of
a better profit picture. In leading the markets, small-cap stocks outpaced the
large-cap stocks and large-cap value stocks slightly outperformed large-cap
growth stocks.
For the three months ending July 31, 2003, the Class A shares of the Fund
increased 7.08 percent, before the impact of sales load. This compares with the
Russell 1000 Value Index (reflecting the performance of securities that
generally represent the value sector of the stock market)**, which increased
9.41 percent during the period.
The Fund underperformed the Russell 1000 Value Index during the past three
months. Contributing to the Fund's underperformance was the security selection
in the healthcare sector. Investment in several large pharmaceutical companies
dragged the Fund down. Another factor that caused the Fund to underperform the
benchmark was the selection of technology securities. Despite the overall
strength of technology in the portfolio, our security selection returned less
than the benchmark's. The consumer discretionary sector provided the greatest
gains against the benchmark in the portfolio.
OUTLOOK
Going forward, we continue to believe that pharmaceutical stocks offer
attractive valuations given the aging demographic profile of the United States.
We also intend to place a greater emphasis on stocks in the portfolio that offer
higher-than market dividend yields. We believe that these securities will
benefit from the new legislation that eliminates the double taxation of
dividends. In the current environment, we continue to view the best strategy to
be that of pursuing solid fundamentals. We continue to base our decisions on
in-depth research in an effort to turn up solid long-term opportunities and
results.
*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. Investment returns and principal values will fluctuate so that shares
upon redemption may be worth more or less than their original cost.
**The Russell 1000 Value Index contains those stocks from the Russell 1000 with
low book to price ratio. The Russell 1000 is the 1,000 largest 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
4
<Page>
TEN LARGEST STOCK HOLDINGS
<Table>
<Caption>
MARKET % OF STOCK
SECURITY DESCRIPTION SHARES VALUE PORTFOLIO
- -------------------- -------- ------------ ----------
Citigroup, Inc. 54,113 $ 2,424,262 3.6%
Bank of America Corporation 28,500 2,353,245 3.5%
Wells Fargo & Company 41,100 2,076,783 3.1%
U.S. Bancorp 83,258 2,041,486 3.1%
Exxon Mobil Corporation 55,206 1,964,228 2.9%
Northrop Grumman Corporation 20,000 1,844,800 2.7%
Chubb Corporation 25,000 1,620,000 2.4%
Fannie Mae (FNMA) 24,300 1,556,172 2.3%
Abbott Laboratories 38,000 1,491,500 2.2%
Microsoft Corporation 55,700 1,470,480 2.2%
------------ -----
$ 18,842,956 28.0%
============ =====
</Table>
[CHART]
<Table>
Basic Materials 6.3%
Capital Goods 10.0%
Communication Services 3.7%
Consumer Cyclical 11.0%
Consumer Staples 9.4%
Energy 8.1%
Financial 31.5%
Cash and Other Assets/Liabilities 2.5%
Health Care 6.3%
Technology 7.2%
Utilities 4.0%
</Table>
5
<Page>
COMPARISON OF CHANGE IN VALUE OF
A HYPOTHETICAL $10,000 INVESTMENT IN ADVANTUS CORNERSTONE FUND,
RUSSELL 1000 VALUE 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 Cornerstone Fund compared to the Russell 1000
Value 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 Cornerstone Fund
(September 16, 1994 for Class A and Class B and March 1, 1995 for Class C)
through July 31, 2003.
[CHART]
CLASS A AND B
AVERAGE ANNUAL TOTAL RETURN:
<Table>
Class A:
One year 1.34%
Five year -4.23%
Since inception (9/16/94) 5.30%
Class B:
One year 1.55%
Five year -4.14%
Since inception (9/16/94) 5.30%
</Table>
(Thousands)
<Table>
<Caption>
CLASS A CLASS B CPI RUSSELL 1000 VALUE INDEX
9/16/1994 $ 10 $ 10 $ 10 $ 10
7/31/1995 $ 11 $ 12 $ 10 $ 12
7/31/1996 $ 13 $ 14 $ 11 $ 14
7/31/1997 $ 20 $ 20 $ 11 $ 21
7/31/1998 $ 19 $ 19 $ 11 $ 24
7/31/1999 $ 20 $ 20 $ 11 $ 28
7/31/2000 $ 18 $ 18 $ 12 $ 26
7/31/2001 $ 18 $ 18 $ 12 $ 29
7/31/2002 $ 15 $ 15 $ 12 $ 24
7/31/2003 $ 16 $ 16 $ 12 $ 26
$15,808 $15,815 $12,342 $26,373
</Table>
6
<Page>
[CHART]
CLASS C
AVERAGE ANNUAL TOTAL RETURN:
<Table>
One year 6.49%
Five year -3.85%
Since inception (3/1/95) 5.24%
</Table>
(Thousands)
<Table>
<Caption>
CLASS C CPI RUSSELL 1000 VALUE INDEX
3/1/1995 $ 10 $ 10 $ 10
7/31/1995 $ 11 $ 10 $ 12
7/31/1996 $ 14 $ 10 $ 13
7/31/1997 $ 20 $ 11 $ 20
7/31/1998 $ 19 $ 11 $ 24
7/31/1999 $ 20 $ 11 $ 27
7/31/2000 $ 18 $ 11 $ 26
7/31/2001 $ 18 $ 12 $ 28
7/31/2002 $ 14 $ 12 $ 23
7/31/2003 $ 15 $ 12 $ 26
$15,418 $12,187 $25,623
</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.
7
<Page>
ADVANTUS ENTERPRISE FUND
PERFORMANCE UPDATE
ELIZABETH B. DATER AND SAMMY OH, PORTFOLIO MANAGERS
CREDIT SUISSE ASSET MANAGEMENT, LLC
PERFORMANCE
The performance of the Advantus Enterprise Fund for the year ended July 31,
2003, was as follows for the three classes of shares currently outstanding:
<Table>
Class A 28.84 percent*
Class B 28.03 percent*
Class C 28.03 percent*
</Table>
The Fund's benchmark, the Russell 2000 Growth Index** returned 27.97 percent for
the same period.
PERFORMANCE ANALYSIS
The period was ultimately a positive one for the U.S. stock market, though
equities struggled early on. The market reached its low point for the period in
early October, hurt by a great deal of uncertainty regarding any conflict with
Iraq and a related decline in consumer sentiment. Stocks began to recover,
however, and were especially buoyant during the March-through-July span. When
the war came to a swift and seemingly successful end in April, a major cloud of
uncertainty lifted and investors embraced risk. Optimism over a potential
recovery in the U.S. economy--and by extension, the global economy--also
supported equities. Grounds for this optimism included historically low interest
rates, a significant tax-reduction package, and an upturn in leading economic
indicators in Europe and non-Japan Asia.
Smaller-cap stocks outperformed their larger-cap counterparts for the year.
While history is not predictive, this has often been the case during periods of
market and/or economic recoveries.
The Fund outperformed its benchmark for the period, aided by good showings from
its consumer-discretionary and health care holdings. The Fund's
financial-services stocks also helped its return, as we focused on non-bank
companies that benefited more from the upturn in market performance and trading
volume.
We made few noteworthy changes to the Fund in terms of sector allocation. We
remained roughly neutrally weighted in the technology sector, with a bias toward
software companies. One subsector weighting that we are monitoring closely is
the Internet. We have a small allocation invested in a select group of
companies, those we deem to have compelling business plans, solid balance sheets
and positive earnings from trends such as "pay for search" services. The
8
<Page>
continued growth in broadband access (aided by declining costs) has also been
supporting the group.
Within health care, where we were modestly overweighted, we maintained a bias
toward hospitals and other service companies. While we have seen some near-term
disappointments here recently, we think that innovation and long-term
demographic trends stand to benefit service companies in general and specific
stocks in particular.
Elsewhere of note, we were roughly neutrally weighted in the
consumer-discretionary sector. Our holdings here continued to include media
names, though we may reduce our exposure to radio companies if the economy
disappoints (we believe that valuations on these stocks have priced in a fair
amount of optimism). We also held several specialty retailers that we think have
good economic leverage and the potential for stock-multiple expansion.
OUTLOOK
We think the U.S. economy has the potential to grow in the year's second half,
aided by tax relief, ongoing improvements in corporate balance sheets and a
favorable liquidity backdrop. Barring a return of heightened geopolitical risk,
we think these factors augur well for growth, though the magnitude of any
recovery remains an uncertainty. For our part, we will remain focused on
companies we deem to have good business plans and healthy balance sheets.
*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. 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 securities in the Russell 2000
Index with a greater-than-average growth orientation. The Russell 2000 Index is
the 2000 smallest companies in the Russell 3000. The Russell 3000 is an
unmanaged index of 3000 common stocks, which represents approximately 98 percent
of the U.S. market.
Investments in smaller company micro-cap stocks generally carry a higher level
of volatility and risk over the short-term.
9
<Page>
TEN LARGEST STOCK HOLDINGS
<Table>
<Caption>
MARKET % OF STOCK
SECURITY DESCRIPTION SHARES VALUE PORTFOLIO
- -------------------- -------- ------------ ----------
Avid Technology, Inc. 24,800 $ 1,152,208 3.0%
LifePoint Hospitals, Inc. 30,300 855,369 2.3%
Medicis Pharmaceutical 13,467 786,473 2.1%
Accredo Health, Inc. 31,100 761,328 2.0%
Sepracor, Inc. 30,500 739,625 2.0%
Varian Semiconductor
Equipment Associates, Inc. 21,700 721,525 1.9%
Semtech Corporation 38,900 641,850 1.7%
Cymer, Inc. 15,704 635,227 1.7%
Emmis Communications Corporation 28,300 566,283 1.5%
Openwave Systems, Inc. 144,700 557,095 1.5%
------------ ----
$ 7,416,983 19.7%
============ ====
</Table>
[CHART]
<Table>
Basic Materials 2.2%
Capital Goods 4.3%
Communication Services 3.0%
Consumer Cyclical 19.9%
Consumer Staples 7.4%
Energy 4.7%
Financial 8.3%
Health Care 18.0%
Transportation 2.2%
Cash and Other Assets/Liabilities 3.6%
Technology 26.4%
</Table>
10
<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 July 31, 2003.
[CHART]
CLASS A AND B
AVERAGE ANNUAL TOTAL RETURN:
<Table>
Class A:
One year 21.75%
Five year -1.93%
Since inception (9/16/94) 3.25%
Class B:
One year 23.07%
Five year -1.80%
Since inception (9/16/94) 3.20%
</Table>
(Thousands)
<Table>
<Caption>
CLASS A CLASS B CPI RUSSELL 2000 GROWTH INDEX
9/16/1994 $ 10 $ 10 $ 10 $ 10
7/31/1995 $ 12 $ 12 $ 10 $ 12
7/31/1996 $ 13 $ 13 $ 11 $ 13
7/31/1997 $ 15 $ 15 $ 11 $ 16
7/31/1998 $ 14 $ 14 $ 11 $ 16
7/31/1999 $ 15 $ 15 $ 11 $ 18
7/31/2000 $ 19 $ 19 $ 12 $ 22
7/31/2001 $ 15 $ 13 $ 12 $ 17
7/31/2002 $ 10 $ 10 $ 12 $ 12
7/31/2003 $ 13 $ 13 $ 12 $ 15
$ 13,286 $ 13,228 $ 12,342 $ 14,738
</Table>
11
<Page>
[CHART]
CLASS C
AVERAGE ANNUAL TOTAL RETURN:
<Table>
One year 28.03%
Five year -1.60%
Since inception (3/1/95) 2.68%
</Table>
(Thousands)
<Table>
<Caption>
CLASS C CPI RUSSELL 2000 GROWTH INDEX
3/1/1995 $ 10 $ 10 $ 10
7/31/1995 $ 12 $ 10 $ 12
7/31/1996 $ 12 $ 10 $ 13
7/31/1997 $ 14 $ 11 $ 16
7/31/1998 $ 14 $ 11 $ 16
7/31/1999 $ 14 $ 11 $ 18
7/31/2000 $ 18 $ 11 $ 22
7/31/2001 $ 13 $ 12 $ 17
7/31/2002 $ 9 $ 12 $ 11
7/31/2003 $ 13 $ 12 $ 15
$ 12,523 $ 12,187 $ 14,695
</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.
12
<Page>
ADVANTUS HORIZON FUND
PERFORMANCE UPDATE
PERFORMANCE
The Fund's performance for the year ended July 31, 2003 for each class of shares
outstanding is as follows:
<Table>
Class A 11.04 percent*
Class B 10.33 percent*
Class C 10.35 percent*
</Table>
This compares to the Fund's benchmark, the Russell 1000 Growth Index**, which
returned 11.64 percent for the same period.
DURING THE PERIOD FROM AUGUST 1, 2002 THROUGH APRIL 30, 2003, THE FUND WAS
MANAGED BY ADVANTUS CAPITAL MANAGEMENT, INC. DURING THE BALANCE OF THE YEAR
COVERED BY THIS REPORT, FROM MAY 1, 2003 THROUGH JULY 31, 2003, THE FUND WAS
MANAGED BY WADDELL & REED IVY INVESTMENT COMPANY. SEPARATE DISCUSSIONS OF FUND
PERFORMANCE DURING EACH PERIOD ARE PROVIDED BELOW.
PERFORMANCE ANALYSIS AUGUST 1, 2002 - APRIL 30, 2003
DISCUSSION BY ADVANTUS CAPITAL MANAGEMENT, INC.
The Horizon Fund's performance during the nine months ended April 30, 2003 was
attributable primarily to individual stock selections.
Over the period from August 1, 2002 through April 30, 2003, our fundamental
analysis and risk management tools minimized the potentially negative effects
found in Consumer Staple and Industrial companies. A disciplined stock selection
approach and a focus on sustainable growth allowed the Fund to select attractive
companies for investment and avoid or minimize the worst hit portions of the
market.
The Fund's Class A shares returned 2.67% (before the impact of sales load) for
the nine months ended April 30, 2003, and outperformed the Fund's benchmark
index, the Russell 1000 Growth Index**, which returned 2.34% for the same
period. Superior stock selection among Consumer Staples, Information Technology,
Industrials, Health Care, and Energy companies contributed favorably to the
Fund's performance. Strong performers for the period included Wyeth, Best Buy
and Bank of America. The Fund's performance was adversely affected by
overweighting Laboratory Corp of America and Kohls, and underweighting AOL Time
Warner and Merck.
Overall contributions to performance from sector allocations were small. The
Fund was adversely affected by underweighting Hospitals and Software and by
overweighting Financials. These allocations were offset by positive
contributions to performance from underweights in Industrials, and other sector
allocations.
13
<Page>
PERFORMANCE ANALYSIS MAY 1, 2003 - JULY 31, 2003
DISCUSSION BY WADDELL & REED IVY INVESTMENT COMPANY
DANIEL P. BECKER, CFA
PORTFOLIO MANAGER
For the first time in many quarters, financial market returns have significantly
exceeded our expectations. The combination of lower uncertainty as the Iraqi war
ended, meaningfully lower corporate and consumer borrowing costs, and ongoing
corporate productivity enhancements is now resulting in an acceleration in the
profits reported by major U.S. companies. The financial markets may be signaling
that additional strong profit growth will occur in the near future.
As positive as the last three quarters were, the strength in the economy and its
ultimate slope of recovery is still a heated debate. Consumer spending has not
rebounded and may be impaired for quite some time. Corporate spending has
stabilized, but signs of a sustained rebound are still scarce. Government
spending continues to be a bright spot in the economy, but we believe we must
have growth from the other sectors as well. We feel that continued follow
through in earnings and GDP are a prerequisite for the financial markets to
sustain recent gains.
The Fund underperformed its benchmark index for the three months ending
July 31, 2003. The Fund's Class A shares increased 8.15 percent, before the
impact of sales load. This compares with the Russell 1000 Growth Index**
(reflecting the performance of securities that generally represent the stock
market) which increased 9.10 percent over the same period.
The Fund was underweighted in some of the large stocks that make up a
significant part of the indices, and performance was hurt when these large
companies performed well later in the year. Large holdings in health care
companies, more specifically, biotechnology companies, and select technology
companies, had a positive effect on performance relative to the benchmark.
OUTLOOK
We are in the process of gradually shifting the Fund to a more cyclical bias,
one characterized by companies that are levered to a rebound in economic growth.
Looking forward, we are shifting our balance between those companies that we
feel benefit from stronger economic growth and those whose profits are
relatively immune to economic fluctuations. We are emphasizing biotech, capital
spending, and financial-related companies. Going forward, we expect to further
increase our exposure to economically linked industries and decrease our
holdings in more stable businesses.
*Historical results are 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. Investment returns and principal values will fluctuate so that shares
upon redemption may be worth more or less than their original cost.
**The Russell 1000 Growth Index contains those stocks from the Russell 1000 with
greater than average growth orientation. The Russell 1000 is the 1,000 largest
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.
14
<Page>
TEN LARGEST STOCK HOLDINGS
<Table>
<Caption>
MARKET % OF STOCK
SECURITY DESCRIPTION SHARES VALUE PORTFOLIO
- -------------------- -------- ------------ ----------
Amgen, Inc. 35,000 $ 2,435,300 8.5%
EMC Corporation 150,600 1,602,384 5.6%
SAP AG 47,500 1,394,125 4.8%
Medtronic, Inc. 26,200 1,349,300 4.7%
Smith International, Inc. 34,000 1,218,560 4.2%
Gilead Sciences, Inc. 16,200 1,110,510 3.9%
Pfizer, Inc. 30,950 1,032,492 3.6%
Analog Devices, Inc. 25,666 974,025 3.4%
Goldman Sachs Group, Inc. 10,600 923,684 3.2%
Zimmer Holdings, Inc. 19,200 917,952 3.2%
------------ ----
$ 12,958,332 45.1%
============ ====
</Table>
[CHART]
<Table>
Consumer Cyclical 8.3%
Consumer Staples 4.3%
Energy 6.0%
Financial 12.3%
Health Care 31.0%
Basic Materials 1.9%
Technology 36.6%
</Table>
15
<Page>
COMPARISON OF CHANGE IN VALUE OF
A HYPOTHETICAL $10,000 INVESTMENT IN ADVANTUS HORIZON FUND,
RUSSELL 1000 GROWTH INDEX AND CONSUMER PRICE INDEX
On the following three charts you can see how the total return for each of the
three classes of shares of the Advantus Horizon Fund compared to the Russell
1000 Growth Index and the Consumer Price Index. The lines in the Class A graph
represent the cumulative total return of a hypothetical $10,000 investment made
on July 31, 1993 through July 31, 2003. The lines in the Class B and Class C
graphs represent the cumulative total return of a hypothetical $10,000
investment made on the inception date of Class B and Class C shares of the
Advantus Horizon Fund (August 19, 1994 and March 1, 1995, respectively) through
July 31, 2003.
[CHART]
CLASS A
AVERAGE ANNUAL TOTAL RETURN:
<Table>
One year 4.93%
Five year -8.24%
Ten year 4.87%
</Table>
(Thousands)
<Table>
<Caption>
CLASS A CPI RUSSELL 1000 GROWTH INDEX
7/31/1993 $ 10 $ 10 $ 10
7/31/1994 $ 10 $ 10 $ 10
7/31/1995 $ 13 $ 11 $ 14
7/31/1996 $ 13 $ 11 $ 16
7/31/1997 $ 19 $ 11 $ 24
7/31/1998 $ 23 $ 11 $ 29
7/31/1999 $ 27 $ 12 $ 36
7/31/2000 $ 33 $ 12 $ 45
7/31/2001 $ 20 $ 12 $ 29
7/31/2002 $ 14 $ 12 $ 21
7/31/2003 $ 16 $ 13 $ 23
$ 16,091 $ 12,735 $ 23,130
</Table>
16
<Page>
[CHART]
CLASS B
AVERAGE ANNUAL TOTAL RETURN:
<Table>
One year 5.33%
Five year -8.05%
Since inception (8/19/94) 4.79%
</Table>
(Thousands)
<Table>
<Caption>
CLASS B CPI RUSSELL 1000 GROWTH INDEX
8/19/1994 $ 10 $ 10 $ 10
7/31/1995 $ 12 $ 10 $ 13
7/31/1996 $ 13 $ 11 $ 15
7/31/1997 $ 19 $ 11 $ 22
7/31/1998 $ 23 $ 11 $ 27
7/31/1999 $ 26 $ 11 $ 33
7/31/2000 $ 31 $ 12 $ 41
7/31/2001 $ 17 $ 12 $ 27
7/31/2002 $ 14 $ 12 $ 19
7/31/2003 $ 15 $ 12 $ 21
$ 15,206 $ 12,392 $ 21,429
</Table>
17
<Page>
[CHART]
CLASS C
AVERAGE ANNUAL TOTAL RETURN:
<Table>
One year 10.35%
Five year -7.86%
Since inception (3/1/95) 4.28%
</Table>
(Thousands)
<Table>
<Caption>
CLASS C CPI RUSSELL 1000 GROWTH INDEX
3/1/1995 $ 10 $ 10 $ 10
7/31/1995 $ 12 $ 10 $ 12
7/31/1996 $ 12 $ 10 $ 14
7/31/1997 $ 17 $ 11 $ 21
7/31/1998 $ 21 $ 11 $ 25
7/31/1999 $ 25 $ 11 $ 31
7/31/2000 $ 29 $ 11 $ 38
7/31/2001 $ 16 $ 12 $ 25
7/31/2002 $ 12 $ 12 $ 18
7/31/2003 $ 14 $ 12 $ 20
$ 14,270 $ 12,187 $ 19,758
</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.
18
<Page>
ADVANTUS INDEX 500 FUND
PERFORMANCE UPDATE
JAMES SEIFERT, PORTFOLIO MANAGER
ADVANTUS CAPITAL MANAGEMENT, INC.
PERFORMANCE
For the year ended July 31, 2003, the Advantus Index 500 Fund returned the
following for each class of shares currently outstanding:
<Table>
Class A 9.76 percent*
Class B 8.94 percent*
Class C 8.97 percent*
</Table>
The Fund's benchmark, the S&P 500 Index,** returned 10.64 percent for the same
period.
PERFORMANCE ANALYSIS
All eleven sectors of the S&P 500 Index** ended the period with positive
returns. The two largest weighted sectors were also the best contributing
sectors. Technology led with a 3.38 percent contribution on a sector return of
22.34 percent. Financials followed with a 2.81 percent contribution on a sector
return of 13.85 percent. The smallest market cap names within the Index
significantly outperformed the mega cap names. In fact, the smallest market
capitalization group ended the period with a positive 55.9 percent return
compared to the largest capitalization group that ended the period up 10.1
percent.
OUTLOOK
We anticipate steady growth and strong market performance for the remainder of
2003. The Federal Reserve has put much stimulus into our economy, and its
incubation period is up. The uncertainty that we faced earlier in the year
regarding war with Iraq is behind us. The war was fought and won. Different
concerns--such as interim government, continuing military presence, and other
issues--are apparent, but not impacting our economy and markets as did the
question of war. We believe business spending has been the weakest link of the
three-legged economic stool (government, business, and consumer) for the past
three years. When businesses can finally put the excesses of the late 1990s
aside
19
<Page>
and start producing, instead of relying on oversupply, then we feel that
business will come back to life. We believe that when this happens, the job
market will strengthen, and recovery will be in full swing. We feel that lower
unemployment results will be the cue that the Federal Reserve is waiting for to
go to a neutral bias. We believe the performance hierarchy for the remainder of
the year will be stocks, cash (i.e. money market), then bonds. As always, we
strongly recommend that investors keep a healthy level of diversification in
their portfolio.
*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. Investment returns and principal values will fluctuate so that shares
upon redemption may be worth more or less than their original cost.
**The S&P 500 Index is a broad, unmanaged index of 500 common stocks which are
representative of the U.S. stock market overall. The Advantus Index 500 Fund is
a mutual fund whose performance reflects the deduction of an investment advisory
fee and other expenses.
20
<Page>
TEN LARGEST STOCK HOLDINGS
<Table>
<Caption>
MARKET % OF STOCK
SECURITY DESCRIPTION SHARES VALUE PORTFOLIO
- -------------------- -------- ------------ ----------
General Electric Company 36,361 $ 1,034,107 3.1%
Microsoft Corporation 39,060 1,031,184 3.2%
Pfizer, Inc. 28,731 958,466 2.9%
Wal-Mart Stores, Inc. 15,980 893,442 2.7%
Exxon Mobil Corporation 24,323 865,412 2.6%
Citigroup, Inc. 18,769 840,851 2.5%
American International Group 9,559 613,687 1.8%
Intel Corporation 23,695 591,190 1.8%
Johnson & Johnson 10,867 562,802 1.7%
International Business
Machines Corporation 6,306 512,362 1.5%
------------ ----
$ 7,903,503 23.8%
============ ====
</Table>
[CHART]
<Table>
Basic Materials 2.9%
Capital Goods 7.5%
Communication Services 4.2%
Consumer Cyclical 10.3%
Consumer Staples 11.1%
Energy 5.2%
Financial 20.0%
Utilities 2.6%
Health Care 13.2%
Transportation 1.5%
Technology 15.4%
Cash and Other Assets/Liabilities 6.1%
</Table>
21
<Page>
COMPARISON OF CHANGE IN VALUE OF
A HYPOTHETICAL $10,000 INVESTMENT IN THE ADVANTUS INDEX 500 FUND,
S&P 500 INDEX AND CONSUMER PRICE INDEX
On the following chart you can see how the total return for each of the three
classes of shares of the Advantus Index 500 Fund compared to the S&P 500 Index
and the Consumer Price Index. The lines represent the cumulative total return of
a hypothetical $10,000 investment made on the inception date of each class of
shares of the Advantus Index 500 Fund (January 31, 1997) through July 31, 2003.
[CHART]
CLASS A, B AND C
AVERAGE ANNUAL TOTAL RETURN:
<Table>
Class A:
One year 3.72%
Five year -3.05%
Since inception (1/31/97) 3.21%
Class B:
One year 3.94%
Five year -3.04%
Since inception (1/31/97) 3.24%
Class C:
One year 8.97%
Five year -2.77%
Since inception (1/31/97) 3.18%
</Table>
(Thousands)
<Table>
<Caption>
CLASS A CLASS B CLASS C CPI S & P 500 INDEX
1/31/1997 $ 10 $ 10 $ 10 $ 10 $ 10
7/31/1997 $ 11 $ 12 $ 12 $ 10 $ 12
7/31/1998 $ 14 $ 14 $ 14 $ 10 $ 15
7/31/1999 $ 16 $ 17 $ 17 $ 10 $ 18
7/31/2000 $ 17 $ 18 $ 18 $ 11 $ 21
7/31/2001 $ 15 $ 15 $ 15 $ 11 $ 17
7/31/2002 $ 11 $ 11 $ 11 $ 11 $ 13
7/31/2003 $ 12 $ 13 $ 12 $ 12 $ 14
$ 12,249 $ 12,606 $ 12,257 $ 11,559 $ 14,149
</Table>
The preceding chart is useful because it provides 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.
22
<Page>
ADVANTUS REAL ESTATE SECURITIES FUND
PERFORMANCE UPDATE
JOSEPH BETLEJ, CFA, PORTFOLIO MANAGER
ADVANTUS CAPITAL MANAGEMENT, INC.
PERFORMANCE
For the year ended July 31, 2003, the Advantus Real Estate Securities Fund
returned the following for each class of shares currently outstanding:
<Table>
Class A 19.65 percent*
Class B 18.73 percent*
</Table>
For the same period, the Wilshire Associates Real Estate Securities Index
(WARESI)** provided a total return of 16.16 percent.
PERFORMANCE ANALYSIS
Over the past twelve months, the Advantus Real Estate Securities Fund delivered
strong performance within the context of weak fundamentals for real estate.
Strong stock picking generated generous performance for the fund relative to the
benchmark index (WARESI). The strong rally in interest rates was significant to
real estate stocks as investors, starved for current income, found quality high
dividend yields in the REIT stocks. The overall equity market, buffeted by the
ups and downs of the economy, the war in Iraq, and increased unemployment, found
calmer waters in the hard assets and more predictable income stream found with
real estate stocks. The sector's strong stock performance caught us somewhat
surprised as we expected the rally in the broader equity market would push
investors into other sectors at the expense of real estate stocks. Investors in
the Fund were fortunate that a broader group of investors now consider real
estate stocks a permanent allocation within their investment portfolio. Funds
flow continues into this group, leading to peaks in index performance toward the
end of the reporting period.
Interest rate-sensitive, consumer-related, and cyclically-oriented stocks
performed the best during the year. Real estate stocks affected by high levels
of new supply or those with poor credit quality performed the worst. Your
portfolio benefited by having proper exposures to the above described
influences.
Homebuilders, net lease companies and mortgage REITs performed extremely well as
interest rates plummeted in the past year. Demand for single-family housing
reached peak levels as affordability was enhanced by historically low mortgage
rates. As current income yields on bond investments dropped, investors reacted
by chasing high yield REITs to higher levels. Apartment companies had a
difficult operating environment as apartment dwellers moved out after finding
new homes while the new supply of apartments continued as
23
<Page>
lower borrowing costs made more projects feasible. The Fund increased its
exposure to homebuilders and reduced its holdings in apartment companies
throughout the reporting year.
The Fund added to retail REITs as confidence built that they would continue to
generate strong operating income and top tier returns. Retail tenants came into
the weakening economy with stronger business plans and better balance sheets. As
consumer demand continued (in part due to lower mortgage rates) the better
retailers continued to seek locations in high productivity malls, many of which
are owned by the retail REITs. The stock prices followed the increasing
fundamentals here.
Hotels and office companies did well as investors anticipated a rebound in the
economy. Both of these groups began a cyclical recovery in stock prices as
investors sensed the signs of strength in GDP numbers. The move in these stocks
came well ahead of improvement in property level fundamentals such as leasing
rates, occupancy, and operating margins. Fund performance was hurt by its
underweight to these sectors, however, stockpicking within these groups added to
results.
Apartments and self storage properties were the worst performing groups, largely
due to the effects of overbuilding in these sectors. We limited our exposure to
these companies because we saw continued weak property fundamentals with high
stock valuations that did not leave room for mistakes. Additionally, companies
with higher levels of debt were negatively impacted as investors put sale
pressure on these stocks as they questioned the quality of their dividends. The
Fund was underweighted in both of these groups for the year.
The Fund continued to be defensive, favoring stocks trading at high (but safe)
dividend yields and those trading at large discounts to the underlying value of
company assets. Also favored are stocks that have solid growth prospects,
regardless of the tone of the economy. Smaller capitalization real estate stocks
provided value relative to their big-cap counterparts during the reporting
period. These strategies helped the Fund deliver strong performance due to
superior stock selection.
OUTLOOK
Real estate stocks have performed well in the face of weak property
fundamentals. Investors rewarded the current income, predictable income stream,
and hard assets available in this sector. Long term, we remain confident in the
valuations of the real estate stocks, however, short term volatility may be
present as these stocks pause after the strong performance generated thus far in
2003. We continue to monitor the strength of the economy--in particular job
growth--to determine when fundamentals can rebound off the depths of
24
<Page>
occupancy and rental rates exhibited in the market today. We remain confident as
corporate decision makers anticipate making the long term commitments of hiring
personnel and leasing new space. The Fund favors stocks trading below the value
of their underlying properties. Companies generating above average growth rates
will be favored going forward as we feel the worst is behind us. As uncertainty
is prevalent in the market, stock picking will continue to be rewarded.
We thank you for your confidence in the Advantus Real Estate Securities Team.
*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. Investment returns and principal values will fluctuate
so that shares upon redemption may be worth more or less than their original
cost.
**The Wilshire Associates Real Estate Securities Index is a market
capitalization-weighted index of equity securities whose primary business is
equity ownership of commercial real estate (REITS).
25
<Page>
TEN LARGEST STOCK HOLDINGS
<Table>
<Caption>
MARKET % OF STOCK
SECURITY DESCRIPTION SHARES VALUE PORTFOLIO
- -------------------- -------- ------------ ----------
Prologis 133,562 $ 3,679,633 6.0%
General Growth Properties, Inc. 40,100 2,734,018 4.5%
Developers Diversified
Realty Corporation 80,600 2,393,820 3.9%
Simon Property Group, Inc. 54,600 2,312,310 3.8%
The Mills Corporation 61,300 2,182,893 3.6%
The Rouse Company 53,100 2,123,469 3.5%
Brookfield Properties Company 91,400 2,063,812 3.4%
CarrAmerica Realty Corporation 67,900 1,983,359 3.2%
Vornado Realty Trust 39,600 1,815,264 3.0%
Apartment Investment &
Management Company 45,720 1,801,825 2.9%
------------ ----
$ 23,090,403 37.8%
============ ====
</Table>
[CHART]
<Table>
Consumer Cyclical 3.6%
Real Estate 10.7%
Real Estate Investment Trust - Apartments 6.3%
Real Estate Investment Trust - Diversified 8.8%
Real Estate Investment Trust - Health Care 1.2%
Real Estate Investment Trust - Hotels 4.8%
Real Estate Investment Trust - Mortgage 0.3%
Real Estate Investment Trust - Office Property 20.0%
Real Estate Investment Trust - Manufactured Housing 0.1%
Real Estate Investment Trust - Regional Mall 19.0%
Real Estate Investment Trust - Self Storage 2.7%
Real Estate Investment Trust - Shopping Centers 10.4%
Real Estate Investment Trust - Warehouse/Industrial 10.4%
Cash and Other Assets/Liabilities 1.7%
</Table>
26
<Page>
COMPARISON OF CHANGE IN VALUE OF
A HYPOTHETICAL $10,000 INVESTMENT IN THE ADVANTUS REAL ESTATE SECURITIES FUND,
WILSHIRE ASSOCIATES REAL ESTATE SECURITIES INDEX AND CONSUMER PRICE INDEX
On the following two charts you can see how the total return for each of the two
classes of shares of the Advantus Real Estate Securities Fund compared to the
Wilshire Associates Real Estate Securities Index and the Consumer Price Index.
The lines in the Class A and Class B graphs represent the cumulative total
return of a hypothetical $10,000 investment made on the inception date of Class
A and Class B shares of the Advantus Real Estate Securities Fund (February 25,
1999 and November 30, 2001, respectively) through July 31, 2003.
[CHART]
CLASS A
AVERAGE ANNUAL TOTAL RETURN:
<Table>
One year 13.07%
Since inception (2/25/99) 12.23%
</Table>
(Thousands)
<Table>
<Caption>
WILSHIRE ASSOCIATES
REAL ESTATE
CLASS A CPI SECURITIES INDEX
2/25/1999 $ 10 $ 10 $ 10
7/31/1999 $ 10 $ 10 $ 11
7/31/2000 $ 11 $ 11 $ 13
7/31/2001 $ 12 $ 11 $ 14
7/31/2002 $ 14 $ 11 $ 15
7/31/2003 $ 17 $ 11 $ 18
$ 16,674 $ 11,193 $ 17,730
</Table>
27
<Page>
[CHART]
CLASS B
AVERAGE ANNUAL TOTAL RETURN:
<Table>
One year 13.73%
Since inception (11/30/01) 15.95%
</Table>
(Thousands)
<Table>
<Caption>
WILSHIRE ASSOCIATES
REAL ESTATE
CLASS B CPI SECURITIES INDEX
11/30/2001 $ 10 $ 10 $ 10
7/31/2002 $ 11 $ 10 $ 11
7/31/2003 $ 13 $ 10 $ 13
$ 12,796 $ 10,366 $ 12,680
</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. 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.
28
<Page>
ADVANTUS VENTURE FUND
PERFORMANCE UPDATE
JOHN BURBANK, PORTFOLIO MANAGER
STATE STREET RESEARCH AND MANAGEMENT COMPANY
PERFORMANCE
For the year ended July 31, 2003, the Advantus Venture Fund returned the
following for each class of shares currently outstanding:
<Table>
Class A 14.91 Percent*
Class B 14.13 Percent*
Class C 14.15 Percent*
</Table>
By comparison, the Russell 2000 Value Index** returned 18.63 percent for the
same period.
PERFORMANCE ANALYSIS
While more defensive sectors and stocks were favored in the third quarter of
2002 and the first quarter of 2003, generally speaking, cyclically oriented,
higher-beta names--along with small-cap stocks--were favored in the fourth
quarter of 2002 and the period following March 2003. The Fund's positioning,
which is highly leveraged to an economic recovery, was beneficial following the
major market reversal away from defensive holdings as investors became
increasingly confident in the market's longer-term prospects in the second
quarter. However, it was costly when more defensive issues were favored. In the
last year, disappointing stock selection in the Consumer Discretionary, Producer
Durables, Financial Services and Health Care sectors could not be offset by
stronger selection in Transportation, Materials, Energy and Technology.
For much of the year, the Fund has been positioned based on a bottom-up
valuation of fundamentals, with a strong cyclical tilt and geared toward an
economic recovery. While this posture hurt returns when investors tended to
favor defensive stocks despite their rich valuations, increased investor
confidence favoring high-beta, cyclical names has benefited returns since March.
Stock selection aided return comparisons in several sectors in the last year,
including Transportation, Materials, Energy and Technology. Within
Transportation, both Frontier Airlines and EGL--along with heavy truck and truck
engine manufacturer Navistar International--posted strong gains. Frontier
Airlines, a national economy carrier based in Denver, has benefited from United
Airlines' ongoing bankruptcy proceedings and retrenchment. Navistar
International gained during the last quarter as the market began to discount the
high probability of a recovery in new truck orders. Our position in EGL, a
global freight transportation company, rose sharply on higher earnings numbers
that resulted from more efficient domestic shipping and cost-cutting
initiatives.
29
<Page>
The Fund's Technology holdings were also strong as software firm Numerical
Technologies' stock price almost doubled following the announcement of its $250
million acquisition by Synopsys. Trimble Navigation, a global positioning system
technology provider, benefited from increased civilian and military use of
GPS-related software and hardware. Additionally, SanDisk, a solid-state memory
manufacturer, has benefited from continued advances within digital consumer
electronics, more than doubling in price over the last year.
These gains, however, could not offset relatively weaker stock selection
results, particularly in the Consumer Discretionary and Producer Durables
sectors. Within these sectors, a number of holdings modestly lagged the
benchmark, combining to create a significant drag on performance. In the
Consumer Discretionary sector, small positions in leisure-time holdings Six
Flags, Steinway Musical Instruments and Bally Total Fitness meaningfully
detracted from return comparisons as these companies were hurt by economic
sluggishness. In the Producer Durables sector, many holdings including
Technitrol, Crown Castle and Asyst Technologies lagged the broader index during
the year as a meaningful recovery in business spending has yet to materialize.
Additionally, our underweighted position in the Health Care sector proved costly
as it was one of the top-returning sectors within the index. Within the Index's
Health Care sector, biotech and pharmaceutical names drove returns performance
as the benchmark sector gained over 35% during the course of the year. While our
underweighted position to the sector--and more specifically the biotech and
pharmaceutical industries--detracted from relative return comparisons, within
our small-cap value approach, we are often underweighted in these areas as it is
very difficult to identify stocks that meet the valuation and cash flow
requirements of our investment process.
OUTLOOK
Even with strong recent performance by small-cap stocks, we remain aggressively
positioned for a continuation of an economic recovery. We continue to be
confident that our portfolio holdings will benefit from a U.S. economic recovery
resulting, in part, from the fiscal and monetary stimulus injected into the
economy in the first half of the year. While small-cap stocks tend to outperform
in the early stages of a recovery, we feel the portfolio is especially well
positioned to benefit in the current environment. As a result, we have not
changed the positioning of the portfolio significantly. Many of our recent
transactions were valuation-driven as we opportunistically trimmed our positions
in Navistar, Phelps Dodge, Varian Semiconductor and Micros Systems on strength.
We reduced our position in the auto parts industry by trimming our holdings in
American Axle & Manufacturing and Borg-Warner, while also eliminating our
position in Lear. While these three firms dominate the small-cap arena for
auto-parts manufacturers, we have been reducing these names because of the
implications of reduced end-market demand. Additionally, at an
30
<Page>
individual stock level we have decreased our exposure to airlines; notably
Midwest Express, which we eliminated, and ExpressJet. As a result, we have a
reduced overweighted position in the Transportation sector.
Within the Consumer Discretionary sector, we decreased our exposure to gaming
names such as Harrah's Entertainment and Mandalay Resort Group. Both companies
have aided long-term portfolio returns, resulting in large profits being taken
in each of these sales. We added several positions within the retail area of the
Consumer Discretionary sector after they became oversold and undervalued on
concerns following winter weather and the ability of the consumer to continue to
maintain spending levels. We added several new positions in retailers Genesco,
Linens 'N Things and Limited Too. We also increased our exposure in the Health
Care sector as we initiated several positions in the sector, including Genesis
Health Ventures, Hooper Holmes and VIASYS Healthcare.
*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. 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 Value Index contains those stocks from the Russell 2000 with
low price to book ratios. 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.
Investments in smaller company and micro-cap stocks generally carry a higher
level of volatility and risk over the short-term.
31
<Page>
TEN LARGEST STOCK HOLDINGS
<Table>
<Caption>
MARKET % OF STOCK
SECURITY DESCRIPTION SHARES VALUE PORTFOLIO
- -------------------- ------- ------------ ----------
Argosy Gaming Company 50,200 $ 1,164,640 1.9%
Technitrol, Inc. 61,400 1,152,478 1.8%
Wabtec Corporation 76,900 1,135,044 1.8%
Agrium, Inc. 96,500 1,080,800 1.7%
The Reader's Digest Association, Inc. 74,500 967,010 1.5%
Veeco Instruments, Inc. 49,800 938,232 1.5%
Phelps Dodge Corporation 22,200 936,618 1.5%
Navistar International Corporation 22,700 885,754 1.4%
Martin Marietta Materials. Inc. 18,800 720,040 1.1%
Trinity Industries, Inc. 30,000 680,700 1.1%
------------ ----
$ 9,661,316 15.3%
============ ====
</Table>
[CHART]
<Table>
Basic Materials 11.0%
Utilities 0.4%
Capital Goods 22.4%
Communication Services 4.1%
Consumer Cyclical 14.3%
Consumer Staples 8.5%
Energy 5.2%
Financial 5.7%
Health Care 4.2%
Technology 15.8%
Transportation 5.2%
Cash And Other Assets/Liabilities 3.2%
</Table>
32
<Page>
COMPARISON OF CHANGE IN VALUE OF
A HYPOTHETICAL $10,000 INVESTMENT IN THE ADVANTUS VENTURE FUND,
RUSSELL 2000 VALUE INDEX AND CONSUMER PRICE INDEX
On the following chart you can see how the total return for each of the three
classes of shares of the Advantus Venture Fund compared to the Russell 2000
Value Index and the Consumer Price Index. The lines represent the cumulative
total return of a hypothetical $10,000 investment made on the inception date of
each class of shares of the Advantus Venture Fund (January 31, 1997) through
July 31, 2003.
[CHART]
CLASS A, B AND C
AVERAGE ANNUAL TOTAL RETURN:
<Table>
Class A:
One year 8.59%
Five year 4.89%
Since inception (1/31/97) 7.51%
Class B:
One year 9.13%
Five year 4.96%
Since inception (1/31/97) 7.50%
Class C:
One year 14.15%
Five year 5.22%
Since inception (1/31/97) 7.56%
</Table>
(Thousands)
<Table>
<Caption>
CLASS A CLASS B CLASS C CPI RUSSELL 2000 VALUE INDEX
1/31/1997 $ 10 $ 10 $ 10 $ 10 $ 10
7/31/1997 $ 11 $ 12 $ 12 $ 10 $ 12
7/31/1998 $ 12 $ 12 $ 12 $ 10 $ 12
7/31/1999 $ 11 $ 12 $ 12 $ 10 $ 12
7/31/2000 $ 12 $ 12 $ 12 $ 11 $ 13
7/31/2001 $ 16 $ 16 $ 16 $ 11 $ 16
7/31/2002 $ 14 $ 14 $ 14 $ 11 $ 15
7/31/2003 $ 16 $ 16 $ 16 $ 12 $ 18
$ 16,009 $ 15,998 $ 16,056 $ 11,559 $ 18,146
</Table>
The preceding chart is useful because it provides 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 perfomance 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.
33
<Page>
ADVANTUS CORNERSTONE FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003
(Percentages of each investment category relate to total net assets.)
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
COMMON STOCK (97.5%)
BASIC MATERIALS (6.3%)
Aluminum (.7%)
17,800 Alcoa, Inc. $ 494,306
---------------
Chemicals (4.4%)
21,300 Air Products and Chemicals, Inc. 990,024
29,200 Du Pont El de Nemours & Company 1,283,048
20,100 The Dow Chemical Company 709,530
---------------
2,982,602
---------------
Mining (.9%)
15,000 Phelps Dodge Corporation (b) 632,850
---------------
Paper and Forest (.3%)
3,600 Weyerhaeuser Company 202,644
---------------
CAPITAL GOODS (10.0%)
Aerospace/Defense (5.3%)
14,600 Lockheed Martin Corporation 764,164
20,000 Northrop Grumman Corporation 1,844,800
32,000 The Boeing Company 1,059,840
---------------
3,668,804
---------------
Electrical Equipment (1.5%)
11,000 Emerson Electric Company 590,700
10,000 General Electric Company 284,400
6,700 Honeywell International, Inc. 189,476
---------------
1,064,576
---------------
Engineering/Construction (.8%)
7,800 Caterpillar, Inc. 526,266
---------------
Manufacturing (2.4%)
4,600 3M Company 644,920
20,800 Sealed Air Corporation (b) 992,784
---------------
1,637,704
---------------
COMMUNICATION SERVICES (3.7%)
Cellular (1.0%)
35,300 Vodafone Group PLC (c) 669,994
---------------
Telephone (2.7%)
29,100 BellSouth Corporation 741,177
32,657 Verizon Communications, Inc. 1,138,423
---------------
1,879,600
---------------
</Table>
See accompanying notes to investments in securities.
34
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
CONSUMER CYCLICAL (11.0%)
Auto (1.8%)
6,800 BorgWarner, Inc. $ 454,036
5,300 Eaton Corporation 446,101
5,400 ITT Industries, Inc. 360,180
---------------
1,260,317
---------------
Distribution Durables (1.4%)
30,000 Genuine Parts Company 928,200
---------------
Leisure (1.5%)
38,700 Brunswick Corporation 1,042,965
---------------
Publishing (1.1%)
4,300 Gannett Company, Inc. 330,369
8,600 Tribune Company 406,092
---------------
736,461
---------------
Retail (3.4%)
50,000 Dollar General Corporation 920,000
35,600 Sears Roebuck and Company 1,448,920
---------------
2,368,920
---------------
Service (1.8%)
68,000 Cendant Corporation (b) 1,220,600
---------------
CONSUMER STAPLES (9.4%)
Beverage (.8%)
4,600 Anheuser-Busch Companies, Inc. 238,372
13,200 Pepsi Bottling Group, Inc. 290,136
---------------
528,508
---------------
Broadcasting (2.9%)
17,600 Clear Channel Communications, Inc. (b) 720,720
31,434 Comcast Corporation (b) 939,003
33,000 Liberty Media Corporation (b) 365,970
---------------
2,025,693
---------------
Entertainment (1.9%)
25,000 Carnival Corporation 857,750
10,400 Viacom, Inc. (b) 452,608
---------------
1,310,358
---------------
Food (2.1%)
62,800 ConAgra Foods, Inc. 1,414,884
---------------
</Table>
See accompanying notes to investments in securities.
35
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
CONSUMER STAPLES--CONTINUED
Service (.8%)
15,000 Manpower, Inc. $ 571,500
---------------
Tobacco (.9%)
16,000 Altria Group, Inc. 640,160
---------------
ENERGY (8.1%)
Oil & Gas (7.3%)
15,500 Anadarko Petroleum Corporation 678,900
13,500 Burlington Resources, Inc. 623,295
55,206 Exxon Mobil Corporation 1,964,228
49,000 GlobalSantaFe Corporation 1,090,250
15,300 Nabors Industries, Ltd. (b) (c) 547,740
4,700 Noble Corporation (b) 154,489
---------------
5,058,902
---------------
Oil & Gas Services (.8%)
15,100 Smith International, Inc. (b) 541,184
---------------
FINANCIAL (31.5%)
Banks (11.0%)
28,500 Bank of America Corporation 2,353,245
10,485 Charter One Financial, Inc. 340,972
10,300 National City Corporation 339,385
14,900 The Bank of New York Company, Inc. 448,788
83,258 U.S. Bancorp 2,041,486
41,100 Wells Fargo & Company 2,076,783
---------------
7,600,659
---------------
Finance - Diversified (5.6%)
29,400 American Express Company 1,298,598
24,300 Fannie Mae (FNMA) 1,556,172
29,600 JP Morgan Chase & Company 1,037,480
---------------
3,892,250
---------------
Insurance (6.9%)
14,000 American International Group 898,800
200 Berkshire Hathaway, Inc. (b) 480,600
25,000 Chubb Corporation 1,620,000
8,300 Hartford Financial Services Group, Inc. 433,177
26,200 Lincoln National Corporation 978,308
7,000 Marsh & McLennan Companies, Inc. 347,340
---------------
4,758,225
---------------
</Table>
See accompanying notes to investments in securities.
36
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
FINANCIAL--CONTINUED
Investment Bankers/Brokers (7.3%)
54,113 Citigroup, Inc. $ 2,424,262
7,000 Goldman Sachs Group, Inc. 609,980
16,300 Merrill Lynch & Company, Inc. 886,231
23,140 Morgan Stanley 1,097,762
---------------
5,018,235
---------------
Real Estate Investment Trust -
Warehouse/Industrial (.7%)
16,600 Prologis 457,330
---------------
HEALTH CARE (6.3%)
Drugs (5.8%)
38,000 Abbott Laboratories 1,491,500
35,600 Bristol-Myers Squibb Company 932,720
14,600 Merck & Company, Inc. 807,088
16,200 Wyeth 738,396
---------------
3,969,704
---------------
Medical Products/Supplies (.5%)
10,800 Becton Dickinson & Company 395,604
---------------
TECHNOLOGY (7.2%)
Computer Hardware (1.6%)
51,400 Hewlett-Packard Company 1,088,138
---------------
Computer Services & Software (3.9%)
68,500 Check Point Software Technologies (b) (c) 1,218,615
55,700 Microsoft Corporation 1,470,480
---------------
2,689,095
---------------
Electronic Components-Semiconductor (.7%)
19,600 Intel Corporation 489,020
---------------
Electronics - Computer Distribution (1.0%)
14,200 WW Grainger, Inc. 698,640
---------------
UTILITIES (4.0%)
Electric Companies (4.0%)
26,000 Cinergy Corporation 884,520
4,700 Dominion Resources, Inc. 282,470
13,200 Exelon Corporation 758,604
30,000 The Southern Company 853,200
---------------
2,778,794
---------------
Total common stock (cost: $60,366,893) 67,243,692
---------------
</Table>
See accompanying notes to investments in securities.
37
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
SHORT-TERM SECURITIES (1.0%)
710,523 Federated Money Market Obligations
Trust--Prime Obligations Fund, current
rate 0.959% $ 710,523
---------------
Total short-term securities
(cost: $710,523) 710,523
---------------
Total investments in securities
(cost: $61,077,416) (d) $ 67,954,215
===============
</Table>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in note 2 to the financial
statements.
(b) Non-income producing.
(c) The Fund held 3.5% of net assets in foreign securities at July 31, 2003.
(d) At July 31, 2003 the cost of securities for federal income tax purposes was
$62,261,948.
The aggregate unrealized appreciation and depreciation of investments in
securities based on this cost were:
<Table>
Gross unrealized appreciation $ 6,238,597
Gross unrealized depreciation (546,330)
---------------
Net unrealized appreciation $ 5,692,267
===============
</Table>
See accompanying notes to financial statements.
38
<Page>
ADVANTUS ENTERPRISE FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003
(Percentages of each investment category relate to total net assets.)
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
COMMON STOCK (96.4%)
BASIC MATERIALS (2.2%)
Chemicals (.8%)
15,800 Airgas, Inc. $ 307,152
---------------
Paper and Forest (1.4%)
18,100 Constar International, Inc. (b) 110,410
17,900 Delta & Pine Land Company 442,309
---------------
552,719
---------------
CAPITAL GOODS (4.3%)
Containers - Metal/Glass (.9%)
48,700 Crown Holdings, Inc. (b) 363,789
---------------
Electrical Defense (1.1%)
27,900 Titan Corporation (b) 427,986
---------------
Manufacturing (.4%)
9,300 Griffon Corporation (b) 166,470
---------------
Office Equipment (.8%)
20,000 Moore Wallace, Inc. (b) (c) 290,800
---------------
Waste Management (1.1%)
28,900 Headwaters, Inc. (b) 413,270
---------------
COMMUNICATION SERVICES (3.0%)
Communications Equipment (2.2%)
19,700 InterDigital Communications
Corporation (b) 312,836
144,700 Openwave Systems, Inc. (b) 557,095
---------------
869,931
---------------
Telecommunication (.8%)
17,600 Polycom, Inc. (b) 293,920
---------------
CONSUMER CYCLICAL (19.9%)
Auto (1.3%)
7,400 BorgWarner, Inc. 494,098
---------------
Distribution Durables (.9%)
17,100 MSC Industrial Direct Company 344,565
---------------
Publishing (.8%)
10,100 Scholastic Corporation (b) 294,617
---------------
Retail (9.9%)
15,000 Aeropostale, Inc. (b) 392,250
21,700 American Eagle Outfitters (b) 480,872
15,700 AnnTaylor Stores Corporation (b) 443,525
</Table>
See accompanying notes to investments in securities.
39
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
CONSUMER CYCLICAL--CONTINUED
24,000 BJ's Wholesale Club, Inc. (b) $ 468,000
13,100 Cost Plus, Inc. (b) 488,237
12,400 Guitar Center, Inc. (b) 417,880
21,100 Gymboree Corporation (b) 313,968
12,850 Hot Topic, Inc. (b) 371,365
28,990 Valuevision Media, Inc. (b) 502,977
---------------
3,879,074
---------------
Service (5.0%)
43,700 Doubleclick, Inc. (b) 490,314
11,659 Getty Images, Inc. (b) 444,558
23,000 Kroll, Inc. (b) 524,860
20,400 Pegasus Solutions, Inc. (b) 303,960
8,200 Penn National Gaming, Inc. (b) 176,300
---------------
1,939,992
---------------
Textiles (2.0%)
18,800 Linens 'N Things, Inc. (b) 502,900
28,600 Tommy Hilfiger Corporation (b) (c) 297,440
---------------
800,340
---------------
CONSUMER STAPLES (7.4%)
Broadcasting (2.7%)
26,900 Cumulus Media, Inc. (b) 470,481
28,300 Emmis Communications Corporation (b) 566,283
---------------
1,036,764
---------------
Entertainment (.9%)
18,100 Movie Gallery, Inc. (b) 362,000
---------------
Food (.9%)
9,300 Performance Food Group Company (b) 351,354
---------------
Food & Health (1.0%)
23,100 Hain Celestial Group, Inc. (b) 378,840
---------------
Restaurants (.9%)
16,400 Jack in the Box, Inc. (b) 349,320
---------------
Service (1.0%)
66 Corrections Corporation of America (b) 1,628
7,100 Education Management Corporation (b) 412,297
---------------
413,925
---------------
</Table>
See accompanying notes to investments in securities.
40
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
ENERGY (4.7%)
Oil & Gas (3.1%)
20,000 Remington Oil & Gas Corporation (b) $ 370,400
13,400 Spinnaker Exploration Company (b) 292,790
14,089 Stone Energy Corporation (b) 543,976
---------------
1,207,166
---------------
Oil & Gas Services (1.6%)
15,300 FMC Technologies, Inc. (b) 343,638
61,300 Newpark Resources (b) 294,853
---------------
638,491
---------------
FINANCIAL (8.3%)
Banks (.8%)
7,100 WestAmerica Bancorporation 314,104
---------------
Finance - Diversified (2.2%)
6,200 Jefferies Group, Inc. 368,094
13,900 Raymond James Financial, Inc. 483,025
---------------
851,119
---------------
Insurance (2.9%)
16,200 HCC Insurance Holdings, Inc. 484,056
6,900 Mid Atlantic Medical Services (b) 375,222
23,500 USI Holdings Corporation (b) 288,815
---------------
1,148,093
---------------
Investment Bankers/Brokers (1.4%)
8,500 Affiliated Managers Group (b) 556,070
---------------
Savings and Loans (1.0%)
15,400 IndyMac Bancorp, Inc. 374,836
---------------
HEALTH CARE (18.0%)
Drugs (8.7%)
8,800 Angiotech Pharmaceuticals, Inc. (b) (c) 389,400
29,300 Biomar Pharmaceutical, Inc. (b) 317,612
23,900 Cubist Pharmaceuticals, Inc. (b) 314,285
23,300 Inspire Pharmaceuticals, Inc. (b) 351,830
16,600 KV Pharmaceutical Company (b) 471,772
13,467 Medicis Pharmaceutical 786,473
30,500 Sepracor, Inc. (b) 739,625
---------------
3,370,997
---------------
Hospital Management (3.5%)
22,900 Community Health Systems, Inc. (b) 508,380
30,300 LifePoint Hospitals, Inc. (b) 855,369
---------------
1,363,749
---------------
</Table>
See accompanying notes to investments in securities.
41
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
HEALTH CARE--CONTINUED
Managed Care (1.0%)
7,500 Coventry Health Care, Inc. (b) $ 404,025
---------------
Medical Products/Supplies (2.9%)
16,300 SonoSite, Inc. (b) 356,318
27,900 Therasense, Inc. (b) 415,152
9,000 Wilson Greatbatch Technologies, Inc. (b) 351,990
---------------
1,123,460
---------------
Special Services (1.9%)
15,000 Apria Healthcare Group, Inc. (b) 389,400
9,400 Fisher Scientific International (b) 355,320
---------------
744,720
---------------
TECHNOLOGY (26.4%)
Communications Equipment (.5%)
16,500 Verisity, Ltd. (b) 190,905
---------------
Computer Networking (1.6%)
40,100 Adaptec, Inc. (b) 271,477
20,700 Ask Jeeves (b) 361,215
---------------
632,692
---------------
Computer Services & Software (12.1%)
37,500 Agile Software Corporation (b) 315,375
24,800 Avid Technology, Inc. (b) 1,152,208
9,400 CACI International, Inc. (b) 369,796
83,600 Chordiant Software, Inc. (b) 243,276
20,600 FileNET Corporation (b) 375,332
14,500 Hyperion Solutions Corporation (b) 396,285
44,600 Informatica Corporation (b) 326,918
50,442 Manugistics Group, Inc. (b) 233,546
79,100 Matrixone, Inc. (b) 401,828
28,200 RealNetworks, Inc. (b) 162,150
18,200 Take-Two Interactive Software (b) 484,120
34,600 webMethods, Inc. (b) 269,880
---------------
4,730,714
---------------
Computer Systems (.1%)
5,303 Secure Computing Corporation (b) 49,795
---------------
Drugs (2.0%)
31,100 Accredo Health, Inc. (b) 761,328
---------------
Electrical Semiconductor (.9%)
47,400 Axcelis Technologies, Inc. (b) 348,864
---------------
</Table>
See accompanying notes to investments in securities.
42
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
TECHNOLOGY--CONTINUED
Electronic Components-Semiconductor (8.0%)
16,400 Actel Corporation (b) $ 399,340
21,940 Brooks Automation, Inc. (b) 422,345
15,704 Cymer, Inc. (b) 635,227
9,600 Integrated Circuit Systems, Inc. (b) 288,480
38,900 Semtech Corporation (b) 641,850
21,700 Varian Semiconductor Equipment
Associates, Inc. (b) 721,525
---------------
3,108,767
---------------
Service - Data Processing (1.2%)
26,804 Documentum, Inc. (b) 459,689
---------------
TRANSPORTATION (2.2%)
Trucking (2.2%)
9,500 JB Hunt Transport Services, Inc. (b) 447,830
19,300 Swift Transportation Company, Inc. (b) 425,372
---------------
873,202
---------------
Total common stock (cost: $34,326,372) 37,583,712
---------------
WARRANTS ( -- )
TECHNOLOGY ( -- )
Electrical Instruments ( -- )
19 APW, Ltd. (b) (d) -
---------------
Total warants (cost: $757) -
---------------
SHORT-TERM SECURITIES (6.8%)
1,999,442 Federated Money Market Obligations
Trust -- Prime Obligations Fund, current
rate 0.959% 1,999,442
668,318 Wells Fargo & Company -- Cash Investment
Fund, current rate 0.951% 668,318
---------------
Total short-term securities
(cost: $2,667,760) 2,667,760
---------------
Total investments in securities
(cost: $36,994,889) (e) $ 40,251,472
===============
</Table>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in note 2 to the financial
statements.
(b) Non-income producing.
(c) The Fund held 2.5% of net assets in foreign securities at July 31, 2003.
(d) This security is being fair-valued according to procedures approved by the
board of directors.
(e) At July 31, 2003 the cost of securities for federal income tax purposes was
$37,267,571. The aggregate unrealized appreciation and depreciation of
investments in securities based on this cost were:
<Table>
Gross unrealized appreciation $ 4,299,487
Gross unrealized depreciation (1,315,586)
---------------
Net unrealized appreciation $ 2,983,901
===============
</Table>
See accompanying notes to financial statements.
43
<Page>
ADVANTUS HORIZON FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003
(Percentages of each investment category relate to total net assets.)
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
COMMON STOCK (100.4%)
BASIC MATERIALS (1.9%)
Chemicals (1.9%)
8,300 Praxair, Inc. $ 536,678
---------------
CONSUMER CYCLICAL (8.3%)
Auto (.1%)
600 Harley-Davidson, Inc. 28,128
---------------
Leisure (1.7%)
19,200 International Game Technology 488,640
---------------
Retail (6.5%)
5,400 Autozone, Inc. (b) 449,604
18,100 Dollar General Corporation 333,040
7,500 Kohl's Corporation (b) 445,125
5,100 Target Corporation 195,432
7,600 Wal-Mart Stores, Inc. 424,916
---------------
1,848,117
---------------
CONSUMER STAPLES (4.3%)
Beverage (1.1%)
6,300 Anheuser-Busch Companies, Inc. 326,466
---------------
Service (1.1%)
8,600 Manpower, Inc. 327,660
---------------
Tobacco (2.1%)
14,900 Altria Group, Inc. 596,149
---------------
ENERGY (6.0%)
Oil & Gas Services (6.0%)
14,300 BJ Services Company (b) 489,775
34,000 Smith International, Inc. (b) 1,218,560
---------------
1,708,335
---------------
FINANCIAL (12.3%)
Banks (4.4%)
6,800 Bank of America Corporation 561,476
13,700 Wells Fargo & Company 692,261
---------------
1,253,737
---------------
Consumer Finance (4.7%)
9,400 Capital One Financial Corporation 450,354
21,300 SLM Corporation 883,098
---------------
1,333,452
---------------
</Table>
See accompanying notes to investments in securities.
44
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
FINANCIAL--CONTINUED
Insurance ( -- )
1,100 Travelers Property Casualty Corporation $ 17,778
---------------
Investment Bankers/Brokers (3.2%)
10,600 Goldman Sachs Group, Inc. 923,684
---------------
HEALTH CARE (31.0%)
Biotechnology (12.4%)
35,000 Amgen, Inc. (b) 2,435,300
16,200 Gilead Sciences, Inc. (b) 1,110,510
---------------
3,545,810
---------------
Drugs (6.1%)
30,950 Pfizer, Inc. 1,032,492
12,600 Teva Pharmaceutical Industries (c) 722,484
---------------
1,754,976
---------------
Health Care - Diversified (1.0%)
5,300 Johnson & Johnson 274,487
---------------
Hospital Management (1.6%)
23,600 Health Management Associates, Inc. 471,292
---------------
Medical Products/Supplies (9.9%)
9,100 Boston Scientific Corporation (b) 575,393
26,200 Medtronic, Inc. 1,349,300
19,200 Zimmer Holdings, Inc. (b) 917,952
---------------
2,842,645
---------------
TECHNOLOGY (36.6%)
Computer Hardware (2.1%)
17,830 Dell, Inc. (b) 600,514
---------------
Computer Networking (2.9%)
41,885 Cisco Systems, Inc. (b) 817,595
---------------
Computer Peripherals (5.6%)
150,600 EMC Corporation (b) 1,602,384
---------------
Computer Services & Software (8.1%)
34,618 Microsoft Corporation 913,916
47,500 SAP AG (c) 1,394,125
---------------
2,308,041
---------------
Electrical Instruments (3.2%)
10,800 Garmin, Ltd. (c) 413,208
6,200 Harman International Industries, Inc. 518,320
---------------
931,528
---------------
</Table>
See accompanying notes to investments in securities.
45
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
TECHNOLOGY--CONTINUED
Electronic Components-Semiconductor (12.3%)
25,666 Analog Devices, Inc. (b) $ 974,025
18,300 Applied Materials, Inc. (b) 356,850
14,988 Linear Technology Corporation 552,757
11,822 Maxim Integrated Products 462,004
28,900 Microchip Technology, Inc. 761,804
15,500 Xilinx, Inc. (b) 407,340
---------------
3,514,780
---------------
Service - Data Processing (2.4%)
22,200 Veritas Software Corporation (b) 683,760
---------------
Total common stock (cost: $24,226,012) 28,736,636
---------------
SHORT-TERM SECURITIES (2.4%)
696,563 Federated Money Market Obligations
Trust -- Prime Obligations Fund,
current rate 0.959% 696,563
---------------
Total short-term securities
(cost: $696,563) 696,563
---------------
Total investments in securities
(cost: $24,922,575) (d) $ 29,433,199
===============
</Table>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in note 2 to the financial
statements.
(b) Non-income producing.
(c) The Fund held 8.8% of net assets in foreign securities at July 31, 2003.
(d) At July 31, 2003 the cost of securities for federal income tax purposes was
$26,070,078. The aggregate unrealized appreciation and depreciation of
investments in securities based on this cost were:
<Table>
Gross unrealized appreciation $ 3,378,980
Gross unrealized depreciation (15,859)
---------------
Net unrealized appreciation $ 3,363,121
===============
</Table>
See accompanying notes to financial statements.
46
<Page>
ADVANTUS INDEX 500 FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003
(Percentages of each investment category relate to total net assets.)
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
COMMON STOCK (93.9%)
BASIC MATERIALS (2.9%)
Agriculture Products (.1%)
886 Monsanto Company $ 20,378
---------------
Aluminum (.2%)
3,078 Alcoa, Inc. 85,476
---------------
Chemicals (1.4%)
802 Air Products and Chemicals, Inc. 37,277
3,639 Du Pont El de Nemours & Company 159,898
273 Eastman Chemical Company 9,910
962 Ecolab, Inc. 23,771
450 Engelhard Corporation 11,826
182 Great Lakes Chemical Corporation 3,967
380 Hercules, Inc. (b) 4,340
292 International Flavors and Fragrances, Inc. 8,804
593 PPG Industries, Inc. 33,487
608 Praxair, Inc. 39,313
771 Rohm & Haas Company 27,270
265 Sigma-Aldrich Corporation 15,097
3,328 The Dow Chemical Company 117,478
487 The Sherwin-Williams Company 14,610
---------------
507,048
---------------
Construction (.1%)
370 Vulcan Materials Company 14,881
---------------
Iron and Steel (.1%)
293 Allegheny Technologies, Inc. 2,212
293 Nucor Corporation 14,451
374 United States Steel Corporation 5,894
---------------
22,557
---------------
Mining (.2%)
532 Freeport-McMoRan Copper & Gold, Inc. 14,252
1,482 Newmont Mining Corporation 53,500
340 Phelps Dodge Corporation (b) 14,345
---------------
82,097
---------------
Paper and Forest (.8%)
232 Bemis Company 10,368
156 Boise Cascade Corporation 3,867
843 Georgia-Pacific Corporation 18,419
1,714 International Paper Company 67,052
1,845 Kimberly-Clark Corporation 89,298
372 Louisiana-Pacific Corporation (b) 4,520
680 MeadWestvaco Corporation 16,463
</Table>
See accompanying notes to investments in securities.
47
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
BASIC MATERIALS--CONTINUED
670 Plum Creek Timber Company, Inc. $ 18,197
223 Temple-Inland, Inc. 10,345
824 Weyerhaeuser Company 46,383
---------------
284,912
---------------
CAPITAL GOODS (7.5%)
Aerospace/Defense (1.5%)
761 General Dynamics Corporation 60,378
426 Goodrich Corporation 9,798
1,632 Lockheed Martin Corporation 85,419
687 Northrop Grumman Corporation 63,369
1,450 Raytheon Company 44,515
676 Rockwell Automation, Inc. 17,468
600 Rockwell Collins, Inc. 15,618
3,059 The Boeing Company 101,314
1,697 United Technologies Corporation 127,665
---------------
525,544
---------------
Containers - Metal/Glass ( -- )
200 Ball Corporation 9,940
---------------
Electrical Equipment (3.7%)
639 American Power Conversion (b) 11,138
343 Cooper Industries, Ltd. 15,205
1,510 Emerson Electric Company 81,087
36,361 General Electric Company (e) 1,034,107
3,084 Honeywell International, Inc. 87,216
722 Jabil Circuit, Inc. (b) 16,642
702 Molex, Inc. 19,600
300 Power-One, Inc. (b) 3,177
3,001 Solectron Corporation (b) 15,335
586 Thermo Electron Corporation (b) 13,038
---------------
1,296,545
---------------
Engineering/Construction (.2%)
1,249 Caterpillar, Inc. 84,270
---------------
Machinery (.3%)
904 Deere & Company 45,905
755 Dover Corporation 27,641
634 Ingersoll-Rand Company (c) 34,388
---------------
107,934
---------------
Manufacturing (1.4%)
1,469 3M Company 205,954
406 Avery Dennison Corporation 21,908
</Table>
See accompanying notes to investments in securities.
48
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
CAPITAL GOODS--CONTINUED
1,112 Illinois Tool Works, Inc. $ 77,451
400 Parker Hannifin Corporation 18,440
296 Sealed Air Corporation (b) 14,128
505 Textron, Inc. 21,927
7,241 Tyco International, Ltd. (c) 134,682
---------------
494,490
---------------
Metal Fabrication ( -- )
296 Worthington Industries 4,351
---------------
Office Equipment (.1%)
879 Pitney Bowes, Inc. 33,490
---------------
Trucks and Parts (.1%)
175 Cummins, Inc. 8,108
255 Navistar International Corporation (b) 9,950
422 Paccar, Inc. 32,578
---------------
50,636
---------------
Waste Management (.2%)
693 Allied Waste Industries, Inc. (b) 8,399
2,118 Waste Management, Inc. 50,599
---------------
58,998
---------------
COMMUNICATION SERVICES (4.2%)
Cellular (.5%)
9,834 AT&T Wireless Services, Inc. (b) 83,884
3,713 Nextel Communications, Inc. (b) 67,799
3,653 Sprint Corporation-PCS Group (b) 22,466
---------------
174,149
---------------
Telecommunication (.9%)
2,898 ADC Telecommunications, Inc. (b) 6,318
560 Andrew Corporation (b) 6,098
1,316 Avaya, Inc. (b) 12,634
1,659 CIENA Corporation (b) 9,639
682 Comverse Technology, Inc. (b) 10,060
4,590 Corning, Inc. (b) 37,363
15,003 Lucent Technologies, Inc. (b) 26,405
8,397 Motorola, Inc. 75,909
2,875 Qualcomm, Inc. 107,698
482 Scientific-Atlanta, Inc. 14,600
1,454 Tellabs, Inc. (b) 9,785
---------------
316,509
---------------
</Table>
See accompanying notes to investments in securities.
49
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
COMMUNICATION SERVICES--CONTINUED
Telephone (2.8%)
1,161 Alltel Corporation $ 54,323
2,794 AT&T Corporation 59,400
6,697 BellSouth Corporation 170,573
533 Centurytel, Inc. 18,277
957 Citizens Communications Company (b) 11,340
6,148 Qwest Communications International,
Inc. (b) 24,531
12,048 SBC Communications, Inc. 281,441
3,260 Sprint Corporation-FON Group 46,031
9,974 Verizon Communications, Inc. 347,694
---------------
1,013,610
---------------
CONSUMER CYCLICAL (10.3%)
Auto (1.1%)
995 Autonation, Inc. (b) 17,104
237 Cooper Tire & Rubber Company 4,029
538 Dana Corporation 8,285
564 Danaher Corporation 40,721
2,006 Delphi Corporation 16,850
302 Eaton Corporation 25,419
6,637 Ford Motor Company 73,405
2,009 General Motors Corporation 75,197
1,063 Harley-Davidson, Inc. 49,833
375 ITT Industries, Inc. 25,012
330 Johnson Controls, Inc. 31,881
613 The Goodyear Tire & Rubber Company 3,378
474 Visteon Corporation 3,000
---------------
374,114
---------------
Building Materials (.2%)
297 American Standard Companies, Inc. (b) 22,691
214 Crane Company 5,309
1,687 Masco Corporation 41,112
---------------
69,112
---------------
Construction (.1%)
250 Centex Corporation 18,142
200 KB Home 11,322
259 Pulte Homes, Inc. 15,830
---------------
45,294
---------------
Distribution Durables (.1%)
640 Genuine Parts Company 19,802
---------------
</Table>
See accompanying notes to investments in securities.
50
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
CONSUMER CYCLICAL--CONTINUED
Hardware and Tools (.1%)
286 Black & Decker Corporation $ 11,686
220 Snap-On, Inc. 6,230
255 The Stanley Works 7,224
---------------
25,140
---------------
Houseware (.1%)
628 Leggett & Platt, Inc. 13,904
275 Maytag Corporation 6,999
256 Whirlpool Corporation 16,583
---------------
37,486
---------------
Leisure (.2%)
327 Brunswick Corporation 8,813
628 Hasbro, Inc. 11,838
1,272 International Game Technology 32,372
1,547 Mattel, Inc. 30,058
---------------
83,081
---------------
Lodging - Hotel (.3%)
371 Harrah's Entertainment, Inc. (b) 16,194
1,309 Hilton Hotels Corporation 19,111
814 Marriott International, Inc. 33,455
677 Starwood Hotels & Resorts Worldwide, Inc. 22,070
---------------
90,830
---------------
Photography/Imagery (.1%)
1,028 Eastman Kodak Company 28,404
---------------
Publishing (.7%)
324 Dow Jones and Company, Inc. 13,715
1,005 Gannett Company, Inc. 77,214
305 Knight-Ridder, Inc. 20,932
178 Meredith Corporation 8,095
571 New York Times Company 25,467
411 RR Donnelly & Sons Company 10,875
673 The McGraw-Hill Companies, Inc. 40,905
1,158 Tribune Company 54,681
---------------
251,884
---------------
Retail (6.5%)
239 American Greetings (b) 4,257
404 Autozone, Inc. (b) 33,637
1,049 Bed Bath & Beyond, Inc. (b) 40,733
1,181 Best Buy Company, Inc. (b) 51,551
405 Big Lots, Inc. (b) 6,241
</Table>
See accompanying notes to investments in securities.
51
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
CONSUMER CYCLICAL--CONTINUED
692 Circuit City Stores, Inc. $ 6,353
1,637 Costco Wholesale Corporation (b) 60,651
1,378 CVS Corporation 41,326
553 Darden Restaurants, Inc. 10,347
278 Dillards, Inc. 4,189
1,145 Dollar General Corporation 21,068
1,155 eBay, Inc. (b) 123,816
628 Family Dollar Stores 23,556
638 Federated Department Stores 25,526
8,332 Home Depot, Inc. 259,958
913 JC Penney Company 16,964
1,264 Kohl's Corporation (b) 75,018
1,862 Limited Brands, Inc. 31,114
2,828 Lowe's Companies, Inc. 134,500
997 Nike, Inc. 51,585
423 Nordstrom, Inc. 8,930
1,046 Office Depot, Inc. (b) 17,364
609 RadioShack Corporation 16,181
198 Reebok International, Ltd. 6,514
1,078 Sears Roebuck and Company 43,875
1,765 Staples, Inc. (b) 35,547
3,315 Target Corporation 127,031
3,159 The Gap, Inc. 56,830
988 The May Department Stores Company 24,413
518 Tiffany & Company 17,798
1,806 TJX Companies, Inc. 35,127
768 Toys 'R' US, Inc. (b) 8,563
15,980 Wal-Mart Stores, Inc. (e) 893,442
---------------
2,314,005
---------------
Service (.7%)
615 Apollo Group, Inc. (b) 39,827
3,690 Cendant Corporation (b) 66,236
478 Convergys Corporation (b) 8,064
313 Fluor Corporation 11,152
674 H&R Block, Inc. 28,571
1,344 Interpublic Group of Companies, Inc. 18,547
405 Monster Worldwide, Inc. (b) 10,753
708 Omnicom Group 52,307
355 Quintiles Transnational Corporation (b) 4,881
554 Robert Half International, Inc. (b) 12,027
514 Sabre Holdings Corporation 11,863
---------------
264,228
---------------
</Table>
See accompanying notes to investments in securities.
52
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
CONSUMER CYCLICAL--CONTINUED
Textiles (.1%)
475 Jones Apparel Group, Inc. (b) $ 13,751
416 Liz Claiborne, Inc. 14,323
350 VF Corporation 13,346
---------------
41,420
---------------
CONSUMER STAPLES (11.1%)
Beverage (2.6%)
164 Adolph Coors 8,426
3,026 Anheuser-Busch Companies, Inc. 156,807
250 Brown-Forman Corporation 19,475
1,595 Coca-Cola Enterprises, Inc. 27,195
948 Pepsi Bottling Group, Inc. 20,837
6,231 PepsiCo, Inc. 287,062
8,933 The Coca-Cola Company 401,717
---------------
921,519
---------------
Broadcasting (1.0%)
2,227 Clear Channel Communications, Inc. 91,196
8,155 Comcast Corporation (b) 247,260
846 Univision Communications, Inc. (b) 26,395
---------------
364,851
---------------
Entertainment (1.5%)
2,303 Carnival Corporation 79,016
6,368 Viacom, Inc. 277,135
7,409 Walt Disney Company 162,405
---------------
518,556
---------------
Food (1.4%)
2,302 Archer-Daniels-Midland Company 30,248
1,444 Campbell Soup Company 34,873
1,918 ConAgra Foods, Inc. 43,213
1,338 General Mills, Inc. 61,374
515 Hershey Foods Corporation 37,497
1,328 HJ Heinz Company 45,232
1,444 Kellogg Company 49,573
450 McCormick & Company, Inc. 11,502
2,778 Sara Lee Corporation 51,921
2,322 Sysco Corporation 69,962
849 WM Wrigley Jr. Company 46,092
---------------
481,487
---------------
</Table>
See accompanying notes to investments in securities.
53
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
CONSUMER CYCLICAL--CONTINUED
Household Products (2.0%)
781 Clorox Company $ 33,888
1,951 Colgate-Palmolive Company 106,525
1,001 Newell Rubbermaid, Inc. 23,654
578 Pactiv Corporation (b) 11,416
4,792 Procter & Gamble Company 421,073
3,703 The Gillette Company 113,904
211 Tupperware Corporation 3,273
---------------
713,733
---------------
Personal Care (.2%)
249 Alberto-Culver Company 13,852
889 Avon Products, Inc. 55,465
---------------
69,317
---------------
Restaurants (.5%)
4,575 McDonald's Corporation 105,271
1,359 Starbucks Corporation (b) 37,141
431 Wendy's International, Inc. 12,667
1,027 Yum! Brands, Inc. (b) 30,738
---------------
185,817
---------------
Retail (.7%)
1,330 Albertson's, Inc. 25,084
2,736 Kroger Company (b) 46,375
1,561 Safeway, Inc. (b) 33,327
485 Supervalu, Inc. 11,422
3,681 Walgreen Company 110,136
510 Winn-Dixie Stores, Inc. 5,845
---------------
232,189
---------------
Service (.2%)
630 Cintas Corporation 26,057
2,956 Concord EFS, Inc. (b) 40,231
231 Deluxe Corporation 10,256
---------------
76,544
---------------
Tobacco (1.0%)
7,343 Altria Group, Inc. 293,793
554 Fortune Brands, Inc. 30,808
315 R.J. Reynolds Tobacco Holdings, Inc. 11,189
630 UST, Inc. 20,948
---------------
356,738
---------------
</Table>
See accompanying notes to investments in securities.
54
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
ENERGY (5.2%)
Oil & Gas (4.7%)
328 Amerada Hess Corporation $ 15,406
891 Anadarko Petroleum Corporation 39,026
600 Apache Corporation 37,176
240 Ashland, Inc. 7,870
716 Burlington Resources, Inc. 33,058
3,921 ChevronTexaco Corporation 282,743
2,462 ConocoPhillips 128,861
844 Devon Energy Corporation 39,980
390 EOG Resources, Inc. 15,124
24,323 Exxon Mobil Corporation (e) 865,412
400 Kerr-McGee Corporation 17,600
1,081 Marathon Oil Corporation 27,825
528 Nabors Industries, Ltd. (b) (c) 18,902
497 Noble Corporation (b) 16,336
1,342 Occidental Petroleum Corporation 43,870
320 Rowan Companies, Inc. (b) 7,024
300 Sunoco, Inc. 11,100
1,096 Transocean, Inc. (b) 21,449
898 Unocal Corporation 26,302
---------------
1,655,064
---------------
Oil & Gas Services (.5%)
1,243 Baker Hughes, Inc. 39,043
573 BJ Services Company (b) 19,625
1,537 Halliburton Company 34,075
237 McDermott International, Inc. (b) 1,401
2,099 Schlumberger, Ltd. 94,602
---------------
188,746
---------------
FINANCIAL (20.0%)
Banks (6.5%)
1,241 Amsouth BanCorp 26,892
5,432 Bank of America Corporation 448,560
4,143 Bank One Corporation 163,897
2,036 BB&T Corporation 71,056
776 Charter One Financial, Inc. 25,236
658 Comerica, Inc. 31,900
2,083 Fifth Third BanCorp 114,586
424 First Tennessee National Corporation 18,190
3,869 FleetBoston Financial Corporation 120,287
785 Huntington Bancshares, Inc. 16,045
1,505 Keycorp 40,500
822 Marshall & Ilsley Corporation 25,745
1,538 Mellon Financial Corporation 46,524
</Table>
See accompanying notes to investments in securities.
55
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
FINANCIAL--CONTINUED
2,200 National City Corporation $ 72,490
525 North Fork Bancorporation, Inc. 18,401
831 Northern Trust Corporation 36,281
860 Regions Financial Corporation 31,046
1,221 SouthTrust Corporation 34,994
1,174 State Street Corporation 53,887
995 SunTrust Banks, Inc. 60,596
1,131 Synovus Financial Corporation 26,612
2,794 The Bank of New York Company, Inc. 84,155
6,962 U.S. Bancorp 170,708
730 Union Planters Corporation 23,462
4,878 Wachovia Corporation 213,120
6,075 Wells Fargo & Company 306,970
297 Zions Bancorporation 16,584
---------------
2,298,724
---------------
Finance - Diversified (3.1%)
4,703 American Express Company 207,732
852 Capital One Financial Corporation 40,819
3,554 Fannie Mae (FNMA) 227,598
405 Federated Investors, Inc. 11,640
2,493 Freddie Mac (FHLMC) 121,783
809 Janus Capital Group, Inc. 14,158
7,361 JP Morgan Chase & Company 258,003
4,633 MBNA Corporation 103,270
570 Moody's Corporation 29,480
1,048 Providian Financial Corporation (b) 10,113
1,740 SLM Corporation 72,140
---------------
1,096,736
---------------
Insurance (5.0%)
920 ACE, Ltd. (c) 30,351
590 Aetna, Inc. 36,356
1,847 Aflac, Inc. 59,252
396 AMBAC Financial Group, Inc. 26,085
9,559 American International Group 613,687
1,132 AON Corporation 27,225
712 Chubb Corporation 46,138
543 Cigna Corporation 25,402
554 Cincinnati Financial Corporation 21,772
1,057 Hartford Financial Services Group, Inc. 55,165
541 Jefferson-Pilot Corporation 23,804
1,062 John Hancock Financial Services, Inc. 34,674
643 Lincoln National Corporation 24,010
647 Loews Corporation 29,762
</Table>
See accompanying notes to investments in securities.
56
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
FINANCIAL--CONTINUED
1,942 Marsh & McLennan Companies, Inc. $ 96,362
554 MBIA, Inc. 28,043
2,727 Metlife, Inc. 75,592
387 MGIC Investment Corporation 21,478
1,156 Principal Financial Group 37,686
1,959 Prudential Financial, Inc. 69,701
522 Safeco Corporation 19,434
789 St. Paul Companies 27,749
2,556 The Allstate Corporation 97,205
774 The Progressive Corporation 51,038
434 Torchmark Corporation 17,638
3,589 Travelers Property Casualty Corporation 57,927
987 UnumProvident Corporation 13,403
610 WellPoint Health Networks (b) 51,026
540 XL Capital, Ltd. (c) 42,930
---------------
1,760,895
---------------
Investment Bankers/Brokers (4.4%)
354 Bear Stearns & Company, Inc. 23,718
18,769 Citigroup, Inc. 840,851
896 Franklin Resources, Inc. 38,931
1,703 Goldman Sachs Group, Inc. 148,399
889 Lehman Brothers Holdings, Inc. 56,247
3,443 Merrill Lynch & Company, Inc. 187,196
3,919 Morgan Stanley 185,917
446 T Rowe Price Group, Inc. 18,103
4,878 The Charles Schwab Corporation 50,780
---------------
1,550,142
---------------
Public Finance (.2%)
510 Countrywide Financial Corporation 34,073
1,017 PNC Financial Services Group, Inc. 49,782
---------------
83,855
---------------
Real Estate Investment Trust - Apartments (.1%)
350 Apartment Investment & Management Company 13,794
993 Equity Residential 27,705
---------------
41,499
---------------
Real Estate Investment Trust - Office Property (.1%)
1,451 Equity Office Properties Trust 40,251
---------------
Real Estate Investment Trust - Regional Mall (.1%)
685 Simon Property Group, Inc. 29,010
---------------
</Table>
See accompanying notes to investments in securities.
57
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
FINANCIAL--CONTINUED
Real Estate Investment Trust -
Warehouse/Industrial ( -- )
650 Prologis $ 17,908
---------------
Savings and Loans (.5%)
598 Golden West Financial Corporation 49,395
3,374 Washington Mutual, Inc. 133,206
---------------
182,601
---------------
HEALTH CARE (13.2%)
Biotechnology (1.2%)
4,568 Amgen, Inc. (b) 317,841
548 Biogen, Inc. (b) 21,054
712 Chiron Corporation (b) 32,467
799 Genzyme Corporation-General Division (b) 40,302
200 Millipore Corporation (b) 8,898
---------------
420,562
---------------
Drugs (7.4%)
5,661 Abbott Laboratories 222,194
7,029 Bristol-Myers Squibb Company 184,160
1,619 Cardinal Health, Inc. 88,640
4,155 Eli Lilly & Company 273,565
1,354 Forest Laboratories, Inc. (b) 64,830
873 King Pharmaceuticals, Inc. (b) 13,147
969 Medimmune, Inc. (b) 37,975
8,232 Merck & Company, Inc. 455,065
28,731 Pfizer, Inc. 958,466
5,326 Schering-Plough Corporation 90,435
375 Watson Pharmaceuticals, Inc. (b) 14,978
4,813 Wyeth 219,377
---------------
2,622,832
---------------
Health Care - Diversified (1.8%)
484 Allergan, Inc. 38,952
10,867 Johnson & Johnson 562,802
1,661 Tenet Healthcare Corporation (b) 22,889
---------------
624,643
---------------
Hospital Management (.2%)
1,845 HCA, Inc. 65,036
865 Health Management Associates, Inc. 17,274
---------------
82,310
---------------
Managed Care (.5%)
573 Humana, Inc. (b) 10,039
332 Manor Care, Inc. (b) 9,462
</Table>
See accompanying notes to investments in securities.
58
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
HEALTH CARE--CONTINUED
1,017 McKesson Corporation $ 32,808
2,156 UnitedHealth Group, Inc. 112,306
---------------
164,615
---------------
Medical Products/Supplies (1.9%)
392 AmerisourceBergen Corporation 24,731
187 Bausch & Lomb, Inc. 7,904
2,120 Baxter International, Inc. 58,533
944 Becton Dickinson & Company 34,579
913 Biomet, Inc. 27,034
1,532 Boston Scientific Corporation (b) 96,868
227 CR Bard, Inc. 15,563
1,137 Guidant Corporation 53,689
4,421 Medtronic, Inc. 227,682
451 Pall Corporation 10,179
666 St. Jude Medical, Inc. (b) 35,731
752 Stryker Corporation 57,543
718 Zimmer Holdings, Inc. (b) 34,328
---------------
684,364
---------------
Special Services (.2%)
489 Anthem, Inc. (b) 36,924
365 Quest Diagnostics (b) 21,812
---------------
58,736
---------------
TECHNOLOGY (15.4%)
Computer Hardware (3.4%)
1,325 Apple Computer, Inc. (b) 27,891
9,314 Dell, Inc. (b) 313,696
1,117 Gateway, Inc. (b) 5,708
11,069 Hewlett-Packard Company 234,331
6,306 International Business Machines Corporation 512,362
335 NCR Corporation (b) 9,236
11,676 Sun Microsystems, Inc. (b) 43,668
769 Symbol Technologies, Inc. 9,851
2,793 Xerox Corporation (b) 30,164
---------------
1,186,907
---------------
Computer Networking (1.6%)
25,453 Cisco Systems, Inc. (b) 496,843
2,205 Yahoo!, Inc. (b) 68,642
---------------
565,485
---------------
</Table>
See accompanying notes to investments in securities.
59
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
TECHNOLOGY--CONTINUED
Computer Peripherals (.4%)
7,931 EMC Corporation (b) $ 84,386
475 Lexmark International, Inc. (b) 30,481
1,173 Network Appliance, Inc. (b) 18,745
---------------
133,612
---------------
Computer Services & Software (5.2%)
891 Adobe Systems, Inc. 29,118
16,308 AOL Time Warner, Inc. (b) 251,632
333 Autodesk, Inc. 4,982
781 BMC Software, Inc. (b) 11,012
554 Citrix Systems, Inc. (b) 10,055
2,099 Computer Associates International, Inc. 53,420
701 Computer Sciences Corporation (b) 28,440
1,371 Compuware Corporation (b) 7,061
549 Electronic Arts, Inc. (b) 46,116
825 IMS Health, Inc. 15,956
324 Mercury Interactive Corporation (b) 12,753
39,060 Microsoft Corporation (e) 1,031,184
1,279 Novell, Inc. (b) 4,540
19,013 Oracle Corporation (b) 228,156
958 Parametric Technology Corporation (b) 3,056
1,341 Peoplesoft, Inc. (b) 22,354
1,775 Siebel Systems, Inc. (b) 16,650
1,072 Sungard Data Systems, Inc. (b) 28,129
545 Symantec Corporation (b) 25,490
1,122 Unisys Corporation (b) 13,756
---------------
1,843,860
---------------
Electrical Instruments (.3%)
1,660 Agilent Technologies, Inc. (b) 36,072
686 Applera Corporation -- Applied Biosystems
Group 14,852
5,143 JDS Uniphase Corporation (b) 15,480
457 PerkinElmer, Inc. 6,791
307 Tektronix, Inc. (b) 6,487
453 Waters Corporation (b) 14,365
---------------
94,047
---------------
Electronics - Computer Distribution ( -- )
1,849 Sanmina-SCI Corporation (b) 14,681
212 Thomas & Betts Corporation (b) 3,235
344 WW Grainger, Inc. 16,925
---------------
34,841
---------------
</Table>
See accompanying notes to investments in securities.
60
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
TECHNOLOGY--CONTINUED
Electronic Components-Semiconductor (3.5%)
1,184 Advanced Micro Devices, Inc. (b) $ 8,643
1,343 Altera Corporation (b) 25,839
1,352 Analog Devices, Inc. (b) 51,308
6,009 Applied Materials, Inc. (b) 117,176
1,034 Applied Micro Circuits Corporation (b) 5,925
1,015 Broadcom Corporation (b) 20,574
23,695 Intel Corporation 591,190
710 Kla-Tencor Corporation (b) 36,672
1,187 Linear Technology Corporation 43,777
1,360 LSI Logic Corporation (b) 12,662
1,197 Maxim Integrated Products 46,779
2,172 Micron Technology, Inc. (b) 31,798
661 National Semiconductor Corporation (b) 14,773
505 Novellus Systems, Inc. (b) 18,084
577 Nvidia Corporation (b) 11,032
612 PMC -- Sierra, Inc. (b) 7,503
377 QLogic Corporation (b) 15,891
663 Teradyne, Inc. (b) 10,906
6,271 Texas Instruments, Inc. 118,334
1,235 Xilinx, Inc. (b) 32,456
---------------
1,221,322
---------------
Service - Data Processing (1.0%)
2,160 Automatic Data Processing 80,093
1,734 Electronic Data Systems Corporation 38,616
511 Equifax, Inc. 11,901
2,250 First Data Corporation 84,960
722 Fiserv, Inc. (b) 28,187
722 Intuit, Inc. (b) 31,060
1,330 Paychex, Inc. 43,265
1,518 Veritas Software Corporation (b) 46,754
---------------
364,836
---------------
TRANSPORTATION (1.5%)
Air Freight (.9%)
1,082 FedEx Corporation 69,670
4,081 United Parcel Service, Inc. 257,429
---------------
327,099
---------------
Airlines (.2%)
447 Delta Air Lines, Inc. 5,319
2,809 Southwest Airlines Company 46,096
---------------
51,415
---------------
</Table>
See accompanying notes to investments in securities.
61
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
TRANSPORTATION--CONTINUED
Railroads (.4%)
1,307 Burlington Northern Santa Fe Corporation $ 36,021
726 CSX Corporation 22,724
1,352 Norfolk Southern Corporation 25,999
952 Union Pacific Corporation 58,015
---------------
142,759
---------------
Trucking ( -- )
206 Ryder System, Inc. 5,986
---------------
UTILITIES (2.6%)
Electric Companies (2.3%)
453 Allegheny Energy, Inc. 3,746
580 Ameren Corporation 24,221
1,445 American Electric Power Company, Inc. 40,547
1,326 Calpine Corporation (b) 7,571
1,033 Centerpoint Energy, Inc. 8,336
613 Cinergy Corporation 20,854
522 CMS Energy Corporation 3,393
802 Consolidated Edison, Inc. 31,847
594 Constellation Energy Group, Inc. 19,840
1,147 Dominion Resources, Inc. 68,935
618 DTE Energy Company 22,069
3,236 Duke Energy Corporation 56,792
1,125 Edison International (b) 18,461
821 Entergy Corporation 42,290
1,205 Exelon Corporation 69,251
1,045 FirstEnergy Corporation 36,042
647 FPL Group, Inc. 39,900
893 NiSource, Inc. 17,235
1,426 PG&E Corporation (b) 30,588
350 Pinnacle West Capital Corporation 12,012
641 PPL Corporation 25,377
893 Progress Energy, Inc. 36,381
836 Public Service Enterprise Group, Inc. 34,067
640 TECO Energy, Inc. 7,936
2,151 The AES Corporation (b) 13,530
2,668 The Southern Company 75,878
1,115 TXU Corporation 22,490
1,381 Xcel Energy, Inc. 19,997
---------------
809,586
---------------
Natural Gas (.3%)
1,301 Dynegy, Inc. (b) 4,124
2,159 El Paso Corporation 15,199
587 KeySpan Corporation 19,811
</Table>
See accompanying notes to investments in securities.
62
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
UTILITIES--CONTINUED
487 Kinder Morgan, Inc. $ 26,054
184 Nicor, Inc. 6,676
158 Peoples Energy Corporation 6,476
762 Sempra Energy 21,206
1,826 Williams Companies, Inc. 11,595
---------------
111,141
---------------
Total common stock (cost: $30,020,770) 33,249,755
---------------
SHORT-TERM SECURITIES (6.0%)
1,767,521 Federated Money Market Obligations
Trust -- Prime Obligations Fund,
current rate 0.959% 1,767,521
366,169 Wells Fargo & Company -- Cash Investment
Fund, current rate 0.951% 366,169
---------------
Total short-term securities
(cost: $2,133,690) 2,133,690
---------------
Total investments in securities
(cost: $32,154,460) (d) $ 35,383,445
===============
</Table>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in note 2 to the financial
statements.
(b) Non-income producing.
(c) The Fund held 0.7% of net assets in foreign securities at July 31, 2003.
(d) At July 31, 2003 the cost of securities for federal income tax purposes was
$32,884,945. The aggregate unrealized appreciation and depreciation of
investments in securities based on this cost were:
<Table>
Gross unrealized appreciation $ 6,887,875
Gross unrealized depreciation (4,389,375)
---------------
Net unrealized appreciation $ 2,498,500
===============
</Table>
(e) Partially pledged as initial margin deposit on open stock index futures
purchase contracts (see note 7 to the financial statements).
See accompanying notes to financial statements.
63
<Page>
ADVANTUS REAL ESTATE SECURITIES FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003
(Percentages of each investment category relate to total net assets.)
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
COMMON STOCK (97.9%)
CONSUMER CYCLICAL (3.6%)
Home Builders (1.2%)
2,200 Lennar Corporation $ 143,418
3,400 Standard-Pacific Corporation 115,600
7,900 Toll Brothers, Inc. (b) 209,350
14,400 WCI Communities, Inc. (b) 253,872
---------------
722,240
---------------
Lodging - Hotel (2.4%)
25,200 Extended Stay America, Inc. (b) 376,992
39,500 Hilton Hotels Corporation 576,700
16,800 Starwood Hotels & Resorts Worldwide, Inc. 547,680
---------------
1,501,372
---------------
FINANCIAL (94.3%)
Real Estate (10.7%)
143,440 Boardwalk Equities, Inc. (c) 1,567,799
91,400 Brookfield Properties Company (c) 2,063,812
47,700 Catellus Development Corporation (b) 1,099,008
29,300 Forest City Enterprises, Inc. 1,201,300
23,100 The St. Joe Company 749,595
---------------
6,681,514
---------------
Real Estate Investment Trust - Apartments (6.3%)
45,720 Apartment Investment & Management Company 1,801,825
12,400 BRE Properties, Inc. 409,820
23,900 Camden Property Trust 891,709
30,500 Equity Residential 850,950
---------------
3,954,304
---------------
Real Estate Investment Trust - Diversified (8.4%)
13,300 Colonial Properties Trust 469,756
31,200 Entertainment Properties Trust 960,960
23,700 iStar Financial, Inc. 859,125
52,500 Newcastle Investment Corporation 1,119,300
39,600 Vornado Realty Trust 1,815,264
---------------
5,224,405
---------------
Real Estate Investment Trust - Health Care (1.2%)
44,100 Ventas, Inc. 729,855
---------------
Real Estate Investment Trust - Hotels (4.8%)
46,100 Host Marriott Corporation (b) 460,078
52,600 Innkeepers USA Trust 431,320
</Table>
See accompanying notes to investments in securities.
64
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
FINANCIAL--CONTINUED
60,000 LaSalle Hotel Properties $ 987,000
128,800 Winston Hotels, Inc. 1,121,848
---------------
3,000,246
---------------
Real Estate Investment Trust - Manufactured
Housing (.1%)
1,500 Sun Communities, Inc. 60,900
---------------
Real Estate Investment Trust - Mortgage (.3%)
13,500 American Mortgage Acceptance Company 198,990
---------------
Real Estate Investment Trust -
Office Property (20.0%)
19,500 Alexandria Real Estate Equities, Inc. 892,125
55,500 American Financial Realty Trust 818,070
19,100 Boston Properties, Inc. 826,839
39,900 Brandywine Realty Trust 997,500
67,900 CarrAmerica Realty Corporation (b) 1,983,359
12,200 Cousins Properties, Inc. 344,040
55,700 Equity Office Properties Trust 1,545,118
44,700 Highwoods Properties, Inc. 1,034,358
22,300 Mack-Cali Realty Corporation 821,086
50,200 Maguire Properties, Inc. (b) 1,024,080
46,626 Reckson Associates Realty Corporation 1,012,952
7,500 SL Green Realty Corporation 268,575
73,800 Trizec Properties, Inc. 876,744
---------------
12,444,846
---------------
Real Estate Investment Trust -
Regional Mall (19.0%)
23,300 CBL & Associates Properties, Inc. 1,122,594
40,100 General Growth Properties, Inc. 2,734,018
37,400 MID Atlantic Realty Trust 783,156
54,600 Simon Property Group, Inc. 2,312,310
17,700 Tanger Factory Outlet Centers 624,810
61,300 The Mills Corporation 2,182,893
53,100 The Rouse Company 2,123,469
---------------
11,883,250
---------------
Real Estate Investment Trust - Self Storage (2.7%)
29,000 Public Storage, Inc. 1,049,800
20,700 Sovran Self Storage, Inc. 656,397
---------------
1,706,197
---------------
Real Estate Investment Trust -
Shopping Centers (10.4%)
80,600 Developers Diversified Realty Corporation 2,393,820
57,000 Equity One, Inc. 969,000
25,350 Kimco Realty Corporation 1,037,576
8,700 Pan Pacific Retail Properties, Inc. 372,273
</Table>
See accompanying notes to investments in securities.
65
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
FINANCIAL--CONTINUED
17,600 Ramco-Gershenson Properties $ 432,608
23,800 Regency Centers Corporation 865,844
30,000 Urstadt Biddle Properties, Inc. 406,500
---------------
6,477,621
---------------
Real Estate Investment Trust -
Warehouse/Industrial (10.4%)
16,500 AMB Property Corporation 463,650
19,200 First Industrial Realty Trust, Inc. 581,760
133,562 Prologis 3,679,633
47,800 PS Business Parks, Inc. 1,771,946
---------------
6,496,989
---------------
Total common stock (cost: $50,650,340) 61,082,729
---------------
PREFERRED STOCKS (.4%)
Financial (.4%)
Real Estate Investment Trust - Diversified (.4%)
8,900 IStar Financial, Inc. 226,861
---------------
Total preferred stocks
(cost: $222,500) 226,861
---------------
SHORT-TERM SECURITIES (1.7%)
1,085,942 Federated Money Market Obligations
Trust -- Prime Obligations Fund,
current rate 0.959% 1,085,942
---------------
Total short-term securities
(cost: $1,085,942) 1,085,942
---------------
Total investments in securities
(cost: $51,958,782) (d) $ 62,395,532
===============
</Table>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in note 2 to the financial
statements.
(b) Non-income producing.
(c) The Fund held 5.8% of net assets in foreign securities at July 31, 2003.
(d) At July 31, 2003 the cost of securities for federal income tax purposes was
$52,734,484. The aggregate unrealized appreciation and depreciation of
investments in securities based on this cost were:
<Table>
Gross unrealized appreciation $ 9,873,280
Gross unrealized depreciation (212,232)
---------------
Net unrealized appreciation $ 9,661,048
===============
</Table>
See accompanying notes to financial statements.
66
<Page>
ADVANTUS VENTURE FUND
INVESTMENTS IN SECURITIES
JULY 31, 2003
(Percentages of each investment category relate to total net assets.)
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
COMMON STOCK (97.0%)
BASIC MATERIALS (11.0%)
Agriculture Products (.4%)
8,800 Bunge, Ltd. $ 263,560
---------------
Chemicals (4.2%)
96,500 Agrium, Inc. (c) 1,080,800
9,600 Ferro Corporation 208,896
29,200 IMC Global, Inc. 213,452
23,000 Methanex Corporation (c) 212,980
9,100 Minerals Technologies, Inc. 454,545
39,100 Omnova Solutions, Inc. (b) 165,002
18,300 PolyOne Corporation 83,448
9,100 Spartech Corporation 206,843
4,632 Stepan Company 112,650
---------------
2,738,616
---------------
Construction (1.1%)
18,800 Martin Marietta Materials, Inc. 720,040
---------------
Iron and Steel (1.7%)
24,400 AK Steel Holding Corporation (b) 58,560
41,700 Allegheny Technologies, Inc. 314,835
9,500 Belden, Inc. 159,030
11,000 GrafTech International, Ltd. (b) 75,900
30,300 United States Steel Corporation 477,528
---------------
1,085,853
---------------
Manufacturing (.2%)
12,100 RTI International Metals, Inc. (b) 122,089
---------------
Mining (1.7%)
22,200 Phelps Dodge Corporation (b) 936,618
5,150 Titanium Metals Corporation (b) 173,298
---------------
1,109,916
---------------
Paper and Forest (1.7%)
12,900 Caraustar Industries, Inc. (b) 115,584
32,700 Graphic Packaging International
Corporation (b) 164,481
22,800 Louisiana-Pacific Corporation (b) 277,020
22,200 Packaging Corporation of America (b) 419,580
4,950 Rayonier, Inc. 172,408
---------------
1,149,073
---------------
CAPITAL GOODS (22.6%)
Aerospace/Defense (2.6%)
58,900 AAR Corporation (b) 477,090
12,900 Esterline Technologies Corporation (b) 247,035
</Table>
See accompanying notes to investments in securities.
67
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
CAPITAL GOODS--CONTINUED
27,700 Orbital Sciences Corporation (b) $ 227,971
5,100 Precision Castparts Corporation 164,475
18,600 Teledyne Technologies, Inc. (b) 282,348
11,700 United Defense Industries, Ltd. (b) 297,063
---------------
1,695,982
---------------
Agriculture Products (.5%)
16,400 Valmont Industries, Inc. 345,384
---------------
Construction (.6%)
28,800 Walter Industries, Inc. 361,440
---------------
Electrical Equipment (2.3%)
61,400 Technitrol, Inc. (b) 1,152,478
12,400 Trimble Navigation, Ltd. (b) 339,140
---------------
1,491,618
---------------
Engineering/Construction (2.3%)
12,000 Dycom Industries, Inc. (b) 204,120
25,000 ElkCorp 605,500
18,000 Granite Construction, Inc. 323,460
23,000 Joy Global, Inc. (b) 363,170
---------------
1,496,250
---------------
Iron and Steel (.3%)
25,000 NS Group, Inc. (b) 186,500
---------------
Machinery (5.5%)
21,200 AGCO Corporation (b) 406,616
3,700 Denison International PLC (b) (c) 76,738
68,200 JLG Industries, Inc. 613,118
28,400 Kadant, Inc. (b) 562,604
15,300 Manitowoc Company 348,840
12,300 Regal-Beloit Corporation (b) 249,690
10,800 Terex Corporation (b) 231,660
76,900 Wabtec Corporation 1,135,044
---------------
3,624,310
---------------
Manufacturing (5.6%)
10,700 Acuity Brands, Inc. 194,205
8,800 Excel Technology, Inc. (b) 229,328
10,300 Federal Signal Corporation 205,485
24,700 Flowserve Corporation (b) 475,722
21,500 Jacuzzi Brands, Inc. (b) 129,215
20,500 Maverick Tube Corporation (b) 338,250
7,000 Pentair, Inc. 282,450
8,900 Roper Industries, Inc. 355,110
</Table>
See accompanying notes to investments in securities.
68
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
CAPITAL GOODS--CONTINUED
20,200 Steelcase, Inc. $ 239,370
20,900 Stewart & Stevenson Services 336,490
12,400 Tredegar Corporation 195,300
30,000 Trinity Industries, Inc. 680,700
---------------
3,661,625
---------------
Metal Fabrication (1.2%)
47,001 Ladish Company, Inc. (b) 287,176
7,504 Penn Engineering & Manufacturing
Corporation 100,629
11,700 Triumph Group, Inc. (b) 363,987
---------------
751,792
---------------
Trucks and Parts (1.7%)
5,000 Cummins, Inc. 231,650
22,700 Navistar International Corporation (b) 885,754
---------------
1,117,404
---------------
COMMUNICATION SERVICES (4.1%)
Communications Equipment (3.1%)
25,200 Anaren, Inc. (b) 277,452
35,500 Andrew Corporation (b) 386,595
8,500 Anixter International, Inc. (b) 189,635
21,500 Commscope, Inc. (b) 222,095
32,500 Inet Technologies, Inc. (b) 361,400
24,000 Plantronics, Inc. (b) 581,760
---------------
2,018,937
---------------
Computer Hardware (.1%)
37,200 NMS Communications Corporation (b) 62,496
---------------
Telecommunication (.3%)
23,700 American Tower Corporation (b) 215,670
---------------
Telephone (.6%)
63,400 PTEK Holdings, Inc. (b) 407,662
---------------
CONSUMER CYCLICAL (14.3%)
Auto (1.8%)
11,100 American Axle & Manufacturing Holdings,
Inc. (b) 321,345
4,700 BorgWarner, Inc. 313,819
17,200 Cooper Tire & Rubber Company 292,400
15,600 PEP Boys-Manny Moe & Jack 241,956
---------------
1,169,520
---------------
Building Materials (.2%)
11,200 Apogee Enterprises, Inc. 114,576
---------------
</Table>
See accompanying notes to investments in securities.
69
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
CONSUMER CYCLICAL--CONTINUED
Entertainment ( -- )
4,000 Boyd Gaming Corporation (b) $ 61,752
---------------
Footwear (.3%)
9,100 Genesco, Inc. (b) 172,172
3,600 Stride Rite Corporation 36,072
---------------
208,244
---------------
Houseware (.3%)
7,600 Furniture Brands International, Inc. (b) 180,576
---------------
Leisure (1.9%)
22,200 Callaway Golf Company 343,212
13,200 International Game Technology 335,940
45,300 Six Flags, Inc. (b) 215,175
19,120 Steinway Musical Instruments (b) 320,260
---------------
1,214,587
---------------
Manufacturing (.3%)
7,400 York International Corporation 216,894
---------------
Publishing (3.1%)
10,000 Bowne & Company, Inc. 134,400
48,200 Hollinger International, Inc. 550,444
22,200 Journal Register Company (b) 408,036
74,500 The Readers Digest Association, Inc. 967,010
---------------
2,059,890
---------------
Retail (2.8%)
10,700 American Eagle Outfitters (b) 237,112
5,300 American Medical Systems Holdings, Inc. (b) 95,241
9,000 Barnes & Noble, Inc. (b) 215,370
1,200 Brookstone, Inc. (b) 27,480
24,600 Charming Shoppes, Inc. (b) 129,150
13,100 Dillards, Inc. 197,417
7,100 Hancock Fabrics, Inc. 127,800
11,400 Talbots, Inc. 376,086
13,600 Too, Inc. (b) 250,240
5,100 Tweeter Home Entertainment Group,
Inc. (b) 38,709
2,700 Zale Corporation (b) 128,385
---------------
1,822,990
---------------
Service (3.3%)
50,200 Argosy Gaming Company (b) 1,164,640
47,000 Integrated Electrical Services, Inc. (b) 341,220
11,300 Penn National Gaming, Inc. (b) 242,950
</Table>
See accompanying notes to investments in securities.
70
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
CONSUMER CYCLICAL--CONTINUED
54,600 Stewart Enterprises, Inc. (b) $ 240,786
6,100 Viad Corporation 135,359
---------------
2,124,955
---------------
Textiles (.3%)
6,200 Linens 'N Things, Inc. (b) 165,850
---------------
CONSUMER STAPLES (8.5%)
Agriculture Products (.9%)
9,600 Corn Products International, Inc. 300,480
15,400 NCO Group, Inc. (b) 296,912
---------------
597,392
---------------
Broadcasting (.6%)
2,500 COX Radio, Inc. (b) 52,375
11,600 Entravision Communications Corporation (b) 123,540
12,400 Gray Television, Inc. 159,836
3,600 Lin TV Corporation (b) 78,408
---------------
414,159
---------------
Distribution Durables (.3%)
7,400 International Multifoods Corporation (b) 185,000
---------------
Food (1.0%)
27,600 Interstate Bakeries 282,624
33,400 Wild Oats Markets, Inc. (b) 353,038
---------------
635,662
---------------
Household Products (1.0%)
8,500 La-Z-Boy, Inc. 181,560
29,300 Tupperware Corporation 454,443
---------------
636,003
---------------
Personal Care (.7%)
23,700 Playtex Products, Inc. (b) 161,397
19,400 Steiner Leisure, Ltd. (b) (c) 313,310
---------------
474,707
---------------
Printing and Publishing (.5%)
13,500 John H. Harland Company 356,400
---------------
Restaurants (.6%)
6,500 Ruby Tuesday, Inc. 147,940
16,300 Ryan's Family Steak Houses, Inc. (b) 220,050
---------------
367,990
---------------
</Table>
See accompanying notes to investments in securities.
71
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
CONSUMER STAPLES--CONTINUED
Retail (1.1%)
21,400 Duane Reade, Inc. (b) $ 358,450
18,100 Longs Drug Stores Corporation 353,493
---------------
711,943
---------------
Service (1.8%)
28,600 Heidrick & Struggles International,
Inc. (b) 512,512
25,900 Tetra Tech, Inc. (b) 415,954
8,500 Valassis Communications, Inc. (b) 240,635
---------------
1,169,101
---------------
ENERGY (5.2%)
Coal (.5%)
9,600 Peabody Energy Corporation 294,624
---------------
Machinery (.5%)
36,400 Hanover Compressor Company (b) 349,076
---------------
Oil & Gas (2.0%)
17,800 Cabot Oil & Gas Corporation 445,890
11,700 Energy Partners, Ltd. (b) 125,892
10,000 Nuevo Energy Company (b) 171,500
5,500 Spinnaker Exploration Company (b) 120,175
6,000 Stone Energy Corporation (b) 231,660
19,500 Vintage Petroleum, Inc. 223,665
---------------
1,318,782
---------------
Oil & Gas Services (2.2%)
20,100 Core Laboratories NV (b) (c) 259,290
54,900 Global Industries, Ltd. (b) 252,540
46,700 Newpark Resources (b) 224,627
16,200 Veritas DGC, Inc. (b) 159,084
27,900 W-H Energy Services, Inc. (b) 507,222
---------------
1,402,763
---------------
FINANCIAL (5.7%)
Banks (.7%)
12,166 Staten Island Bancorp, Inc. 267,652
18,300 Sterling Bancshares, Inc. 225,822
---------------
493,474
---------------
Consumer Finance (.7%)
15,200 American Capital Strategies, Ltd. 427,576
---------------
</Table>
See accompanying notes to investments in securities.
72
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
FINANCIAL--CONTINUED
Finance - Diversified (.7%)
16,500 Dollar Thrifty Automotive Group (b) $ 370,095
5,900 SWS Group, Inc. 120,065
---------------
490,160
---------------
Insurance (2.6%)
10,200 AmerUs Group Company 312,324
6,853 Fidelity National Financial, Inc. 196,613
8,800 Harleysville Group, Inc. 197,912
30,900 Hooper Holmes, Inc. 216,300
15,500 Hub International, Ltd. (c) 294,500
8,300 Odyssey Re Holdings Corporation 152,720
17,000 Ohio Casualty Corporation (b) 252,790
2,200 RLI Corporation 71,192
---------------
1,694,351
---------------
Investment Bankers/Brokers (.2%)
8,700 Investment Technology Group, Inc. (b) 161,646
---------------
Real Estate Investment Trust - Shopping
Centers (.5%)
10,900 Heritage Property Investment Trust 311,195
---------------
Savings and Loans (.3%)
10,200 First Niagara Financial Group, Inc. 167,280
---------------
HEALTH CARE (4.2%)
Biotechnology (.2%)
7,504 Invivo Corporation (b) 134,772
---------------
Chemicals (.1%)
3,700 Cambrex Corporation 78,366
---------------
Drugs (1.0%)
19,500 ICN Pharmaceuticals, Inc. 304,395
19,600 Sangstat Medical Corporation (b) 313,796
---------------
618,191
---------------
Health Care - Diversified (.3%)
9,500 Genesis Health Ventures, Inc. (b) 201,875
---------------
Hospital Management (1.4%)
6,400 Community Health Systems, Inc. (b) 142,080
13,800 LifePoint Hospitals, Inc. (b) 389,574
29,000 Province Healthcare Company (b) 388,600
---------------
920,254
---------------
Managed Care (.2%)
6,600 Humana, Inc. (b) 115,632
---------------
</Table>
See accompanying notes to investments in securities.
73
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
HEALTH CARE--CONTINUED
Medical Products/Supplies (1.0%)
8,600 ArthoCare Corporation (b) $ 144,050
10,400 Cytyc Corporation (b) 122,928
7,300 Ocular Sciences, Inc. (b) 156,950
10,300 Viasys Healthcare, Inc. (b) 233,295
---------------
657,223
---------------
TECHNOLOGY (15.8%)
Computer Hardware (.4%)
46,900 SimpleTech, Inc. (b) 251,384
---------------
Computer Peripherals (1.3%)
27,900 Electronics for Imaging, Inc. (b) 585,900
9,900 Hutchinson Technology, Inc. (b) 284,328
---------------
870,228
---------------
Computer Services & Software (1.0%)
14,800 Earthlink, Inc. (b) 113,220
8,500 Micros Systems, Inc. (b) 291,890
9,900 ProQuest Company (b) 248,193
---------------
653,303
---------------
Computer Systems (.2%)
35,700 Carreker Corporation (b) 158,865
---------------
Electrical Instruments (3.2%)
39,000 BEI Technologies, Inc. (b) 531,960
15,300 Benchmark Electronics, Inc. (b) 608,940
11,500 Cognex Corporation (b) 327,750
12,200 Coherent, Inc. (b) 298,656
16,200 LeCroy Corporation (b) 193,104
6,800 Littelfuse, Inc. (b) 158,372
7,800 OpticNet, Inc. (b)(d) 624
---------------
2,119,406
---------------
Electronics - Computer Distribution (2.0%)
12,500 Avnet, Inc. (b) 180,000
14,200 AVX Corporation 155,490
61,600 Kemet Corporation (b) 668,360
19,900 Thomas & Betts Corporation (b) 303,674
---------------
1,307,524
---------------
Electronic Components-Semiconductor (6.6%)
14,700 Actel Corporation (b) 357,945
17,300 ATMI, Inc. (b) 445,821
28,100 Brooks Automation, Inc. (b) 540,925
</Table>
See accompanying notes to investments in securities.
74
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
TECHNOLOGY--CONTINUED
14,400 ChipPAC, Inc. (b) $ 82,080
42,600 Cypress Semiconductor Corporation (b) 595,548
15,700 Helix Technology Corporation 255,282
17,200 MKS Instruments, Inc. (b) 388,892
37,600 Triquint Semiconductor, Inc. (b) 170,328
16,200 Varian Semiconductor Equipment
Associates, Inc. (b) 538,650
49,800 Veeco Instruments, Inc. (b) 938,232
---------------
4,313,703
---------------
Hardware and Tools (.4%)
12,700 Watts Industries, Inc. 232,410
---------------
Service - Data Processing (.7%)
43,700 Ciber, Inc. (b) 435,689
---------------
TRANSPORTATION (5.2%)
Air Freight (1.0%)
37,600 EGL, Inc. (b) 621,152
---------------
Airlines (2.3%)
16,600 Alaska Air Group, Inc. (b) 406,036
30,600 Frontier Airlines, Inc. (b) 391,068
63,400 Mesa Air Group, Inc. (b) 676,478
---------------
1,473,582
---------------
Railroads (.8%)
16,500 GATX Corporation 361,680
21,300 RailAmerica, Inc. (b) 179,985
---------------
541,665
---------------
Shipping (1.1%)
5,600 Kirby Corporation (b) 152,880
62,600 OMI Corporation (b) 426,306
3,600 Teekay Shipping Corporation (c) 158,688
---------------
737,874
---------------
UTILITIES (.4%)
Natural Gas (.4%)
17,300 NUI Corporation 269,015
---------------
Total common stock (cost: $55,137,750) 63,337,448
---------------
</Table>
See accompanying notes to investments in securities.
75
<Page>
<Table>
<Caption>
MARKET
SHARES VALUE(a)
- ------ ---------------
SHORT-TERM SECURITIES (3.1%)
2,032,887 Federated Money Market Obligations
Trust -- Prime Obligations Fund,
current rate 0.959% $ 2,032,887
---------------
Total short-term securities
(cost: $2,032,887) 2,032,887
---------------
Total investments in securities
(cost: $57,170,637) (e) $ 65,370,335
===============
</Table>
NOTES TO INVESTMENTS IN SECURITIES
(a) Securities are valued by procedures described in note 2 to the financial
statements.
(b) Non-income producing.
(c) The Fund held 3.7% of net assets in foreign securities at July 31, 2003.
(d) Represents ownership in an illiquid security (see note 8 to the financial
statements). Information concerning the illiquid security held at July 31,
2003, which includes acquisition date and cost is as follows:
<Table>
<Caption>
ACQUISITION
SECURITY DATE COST
-------- ----------- ----
OpticNet, Inc. 10/30/2000 $ 624
</Table>
(e) At July 31, 2003 the cost of securities for federal income tax purposes was
$57,469,675. The aggregate unrealized appreciation and depreciation of
investments in securities based on this cost were:
<Table>
Gross unrealized appreciation $ 12,581,122
Gross unrealized depreciation (4,680,462)
---------------
Net unrealized appreciation $ 7,900,660
===============
</Table>
See accompanying notes to financial statements.
76
<Page>
(This page has been left blank intentionally.)
<Page>
ADVANTUS EQUITY FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2003
<Table>
<Caption>
CORNERSTONE ENTERPRISE HORIZON
FUND FUND FUND
------------- ------------- -------------
ASSETS
Investments in securities, at market value - see accompanying
schedule for detailed listing*+ $ 67,954,215 $ 40,251,472 $ 29,433,199
Receivable for Fund shares sold 2,248 2,045 2,444
Receivable for investment securities sold 1,387,684 176,459 -
Dividends and accrued interest receivable 135,971 7,057 4,426
Receivable for refundable foreign income taxes withheld - - -
Collateral for securities loaned (note 6) - 15,478,749 -
Other receivables - - -
Variation margin - - -
------------- ------------- -------------
Total Assets 69,480,118 55,915,782 29,440,069
------------- ------------- -------------
LIABILITIES
Payable for Fund shares redeemed 85,422 53,214 87,238
Payable for investment securities purchased 344,832 1,329,346 669,313
Payable to Adviser 59,350 32,753 16,556
Accrued expenses 37,155 35,518 52,496
Payable upon return of securities loaned (note 6) - 15,478,749 -
------------- ------------- -------------
Total Liabilities 526,759 16,929,580 825,603
------------- ------------- -------------
Net assets applicable to outstanding capital stock $ 68,953,359 $ 38,986,202 $ 28,614,466
============= ============= =============
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 $ 55,064 $ 47,406 $ 23,483
Additional paid-in capital 77,365,101 56,809,279 41,047,190
Undistributed (distributions in excess of) net investment income 57,584 - -
Accumulated net realized (losses) from investments (15,401,189) (21,127,066) (16,966,831)
Unrealized appreciation on investments 6,876,799 3,256,583 4,510,624
------------- ------------- -------------
Total - representing net assets applicable to outstanding capital stock $ 68,953,359 $ 38,986,202 $ 28,614,466
============= ============= =============
Net assets applicable to outstanding Class A shares $ 63,548,774 $ 35,537,930 $ 21,928,158
============= ============= =============
Net assets applicable to outstanding Class B shares $ 4,811,560 $ 3,044,836 $ 6,128,154
============= ============= =============
Net assets applicable to outstanding Class C shares $ 593,025 $ 403,436 $ 558,154
============= ============= =============
Net asset value per share:
Class A $ 12.54 $ 8.31 $ 12.47
============= ============= =============
Class B $ 12.32 $ 7.40 $ 11.32
============= ============= =============
Class C $ 12.28 $ 7.40 $ 11.41
============= ============= =============
Shares outstanding:
Class A 5,067,457 4,274,677 1,757,970
============= ============= =============
Class B 390,690 411,347 541,397
============= ============= =============
Class C 48,294 54,549 48,939
============= ============= =============
* Identified cost $ 61,077,416 $ 36,994,889 $ 24,922,575
+ Including securities on loan of $ - $ 15,020,091 $ -
<Caption>
REAL ESTATE
INDEX 500 SECURITIES VENTURE
FUND FUND FUND
------------- ------------- -------------
ASSETS
Investments in securities, at market value - see accompanying
schedule for detailed listing*+ $ 35,383,445 $ 62,395,532 $ 65,370,335
Receivable for Fund shares sold 51,328 535,900 60,670
Receivable for investment securities sold - 825,060 168,840
Dividends and accrued interest receivable 43,544 91,047 14,808
Receivable for refundable foreign income taxes withheld 2,390 - -
Collateral for securities loaned (note 6) 1,875,689 6,139,431 17,174,007
Other receivables - - 195
Variation margin 5,805 - -
------------- ------------- -------------
Total Assets 37,362,201 69,986,970 82,788,855
------------- ------------- -------------
LIABILITIES
Payable for Fund shares redeemed 31,977 44,883 13,474
Payable for investment securities purchased - 1,346,233 187,312
Payable to Adviser 25,728 55,327 59,796
Accrued expenses 33,875 16,207 26,136
Payable upon return of securities loaned (note 6) 1,875,689 6,139,431 17,174,007
------------- ------------- -------------
Total Liabilities 1,967,269 7,602,081 17,460,725
------------- ------------- -------------
Net assets applicable to outstanding capital stock $ 35,394,932 $ 62,384,889 $ 65,328,130
============= ============= =============
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 $ 27,351 $ 46,509 $ 50,341
Additional paid-in capital 38,823,511 52,769,883 60,582,554
Undistributed (distributions in excess of) net investment income 13,500 - -
Accumulated net realized (losses) from investments (6,691,662) (868,253) (3,504,463)
Unrealized appreciation on investments 3,222,232 10,436,750 8,199,698
------------- ------------- -------------
Total - representing net assets applicable to outstanding capital stock $ 35,394,932 $ 62,384,889 $ 65,328,130
============= ============= =============
Net assets applicable to outstanding Class A shares $ 20,370,983 $ 60,197,984 $ 59,141,350
============= ============= =============
Net assets applicable to outstanding Class B shares $ 13,401,754 $ 2,186,905 $ 5,097,364
============= ============= =============
Net assets applicable to outstanding Class C shares $ 1,622,195 $ - $ 1,089,416
============= ============= =============
Net asset value per share:
Class A $ 13.05 $ 13.42 $ 13.02
============= ============= =============
Class B $ 12.80 $ 13.36 $ 12.53
============= ============= =============
Class C $ 12.77 $ - $ 12.60
============= ============= =============
Shares outstanding:
Class A 1,560,939 4,487,155 4,540,734
============= ============= =============
Class B 1,047,143 163,725 406,867
============= ============= =============
Class C 127,030 - 86,480
============= ============= =============
* Identified cost $ 32,154,460 $ 51,958,782 $ 57,170,637
+ Including securities on loan of $ 1,794,784 $ 5,921,410 $ 16,492,853
</Table>
See accompanying notes to financial statements.
78/79
<Page>
STATEMENTS OF OPERATIONS
YEAR ENDED JULY 31, 2003
<Table>
<Caption>
CORNERSTONE ENTERPRISE HORIZON
FUND FUND FUND
------------- ------------- -------------
Investment Income:
Interest $ 21,671 $ 31,562 $ 6,751
Dividends+ 1,467,270 38,112 280,285
Income from securities lending activities 2,222 9,458 1,178
Commission reimbursement income (note 9) - - -
------------- ------------- -------------
Total investment income 1,491,163 79,132 288,214
------------- ------------- -------------
Expenses (note 4):
Investment advisory fee 446,882 225,183 194,307
Rule 12b-1 fees - Class A 144,960 72,018 51,822
Rule 12b-1 fees - Class B 52,490 29,770 64,537
Rule 12b-1 fees - Class C 6,072 3,848 5,755
Administrative services fee 59,719 59,719 59,876
Transfer agent and shareholder services fees 150,083 114,428 226,899
Custodian fees 6,113 8,664 5,814
Audit and accounting services 43,302 43,303 41,762
Legal fees 6,921 7,021 7,193
Registration fees 42,000 42,000 37,000
Printing and shareholder reports 26,661 20,207 40,965
Directors' fees 1,960 1,100 900
Insurance 2,750 2,396 2,396
Other 8,383 5,857 7,731
------------- ------------- -------------
Total expenses 998,296 635,514 746,957
Less fees and expenses waived or absorbed by Adviser and Distributor:
Class A Rule 12b-1 fees - (148) -
Other waived fees (130,768) (125,880) (312,856)
------------- ------------- -------------
Total net expenses 867,528 509,486 434,101
------------- ------------- -------------
Investment income (loss) - net 623,635 (430,354) (145,887)
------------- ------------- -------------
Realized and unrealized gains (losses) on investments:
Net realized gains (losses) from:
Investments (note 3) (4,680,268) (3,879,607) 106,189
Futures contracts (note 2) - - -
Net change in unrealized appreciation or depreciation on:
Investments 8,631,894 13,068,836 2,780,332
Futures contracts - - -
------------- ------------- -------------
Net gains (losses) on investments 3,951,626 9,189,229 2,886,521
------------- ------------- -------------
Net increase (decrease) in net assets resulting from operations $ 4,575,261 $ 8,758,875 $ 2,740,634
============= ============= =============
+ Net of foreign withholding tax of $ 1,417 $ - $ 1,931
<Caption>
REAL ESTATE
INDEX 500 SECURITIES VENTURE
FUND FUND FUND
------------- ------------- -------------
Investment Income:
Interest $ 15,216 $ 19,628 $ 20,870
Dividends+ 568,609 1,872,351 347,780
Income from securities lending activities 2,171 4,538 23,134
Commission reimbursement income (note 9) - - 660
------------- ------------- -------------
Total investment income 585,996 1,896,517 392,444
------------- ------------- -------------
Expenses (note 4):
Investment advisory fee 112,027 322,522 386,688
Rule 12b-1 fees - Class A 45,501 103,510 124,069
Rule 12b-1 fees - Class B 132,048 15,989 43,998
Rule 12b-1 fees - Class C 15,441 - 12,138
Administrative services fee 59,876 52,176 59,876
Transfer agent and shareholder services fees 169,189 34,541 101,695
Custodian fees 6,708 11,507 18,338
Audit and accounting services 44,802 39,040 44,002
Legal fees 7,246 6,673 7,277
Registration fees 38,000 36,685 47,950
Printing and shareholder reports 22,957 7,862 28,389
Directors' fees 1,100 1,450 1,650
Insurance 2,396 2,574 2,750
Other 5,528 4,004 7,799
------------- ------------- -------------
Total expenses 662,819 638,533 886,619
Less fees and expenses waived or absorbed by Adviser and Distributor:
Class A Rule 12b-1 fees (98) (264) (288)
Other waived fees (272,536) - -
------------- ------------- -------------
Total net expenses 390,185 638,269 886,331
------------- ------------- -------------
Investment income (loss) - net 195,811 1,258,248 (493,887)
------------- ------------- -------------
Realized and unrealized gains (losses) on investments:
Net realized gains (losses) from:
Investments (note 3) (1,384,324) 244,069 (2,979,654)
Futures contracts (note 2) 115,494 - -
Net change in unrealized appreciation or depreciation on:
Investments 3,928,568 8,144,191 11,321,019
Futures contracts 51,043 - -
------------- ------------- -------------
Net gains (losses) on investments 2,710,781 8,388,260 8,341,365
------------- ------------- -------------
Net increase (decrease) in net assets resulting from operations $ 2,906,592 $ 9,646,508 $ 7,847,478
============= ============= =============
+ Net of foreign withholding tax of $ 2,390 $ 4,538 $ 3,886
</Table>
See accompanying notes to financial statements.
80/81
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
CORNERSTONE FUND
------------------------------------------------
PERIOD FROM
YEAR ENDED OCTOBER 1, YEAR ENDED
JULY 31, 2001 TO JULY 31, SEPTEMBER 30,
2003 2002 2001
------------- ---------------- -------------
Operations:
Investment income (loss) - net $ 623,635 $ 387,940 $ 429,308
Net realized gains (losses) on investments (4,680,268) (5,242,003) (3,427,029)
Net change in unrealized appreciation or depreciation of investments and
futures contracts 8,631,894 1,253,980 (11,683,754)
------------- ---------------- -------------
Increase (decrease) in net assets resulting from operations 4,575,261 (3,600,083) (14,681,475)
------------- ---------------- -------------
Distributions to shareholders from:
Investment income - net:
Class A (555,525) (377,849) (408,866)
Class B (11,955) (5,558) (1,880)
Class C (1,447) (594) (254)
Net realized gains on investments:
Class A - - -
Class B - - -
Class C - - -
------------- ---------------- -------------
Total distributions (568,927) (384,001) (411,000)
------------- ---------------- -------------
Capital share transactions (note 5):
Proceeds from sales:
Class A 10,774,848 7,910,021 5,289,579
Class B 362,769 357,179 611,558
Class C 34,487 37,054 64,321
Proceeds from issuance of shares as a result of reinvested distributions:
Class A 299,607 207,753 228,567
Class B 11,597 5,340 1,823
Class C 1,395 591 251
Payments for redemptions of shares:
Class A (9,200,925) (12,312,791) (8,002,033)
Class B (1,999,159) (2,231,688) (3,076,130)
Class C (155,168) (192,680) (289,292)
------------- ---------------- -------------
Increase (decrease) in net assets from capital share transactions 129,451 (6,219,221) (5,171,356)
------------- ---------------- -------------
Total increase (decrease) in net assets 4,135,785 (10,203,305) (20,263,831)
Net assets at beginning of period 64,817,574 75,020,879 95,284,710
------------- ---------------- -------------
Net assets at end of period* $ 68,953,359 $ 64,817,574 $ 75,020,879
============= ================ =============
* Including undistributed (distributions in excess of) net investment income $ 57,584 $ 4,818 $ 18,308
<Caption>
ENTERPRISE FUND
------------------------------------------------
PERIOD FROM
YEAR ENDED OCTOBER 1, YEAR ENDED
JULY 31, 2001 TO JULY 31, SEPTEMBER 30,
2003 2002 2001
------------- ---------------- -------------
Operations:
Investment income (loss) - net $ (430,354) $ (439,780) $ (561,707)
Net realized gains (losses) on investments (3,879,607) (6,244,790) (10,661,326)
Net change in unrealized appreciation or depreciation of investments and
futures contracts 13,068,836 3,142,493 (17,527,880)
------------- ---------------- -------------
Increase (decrease) in net assets resulting from operations 8,758,875 (3,542,077) (28,750,913)
------------- ---------------- -------------
Distributions to shareholders from:
Investment income - net:
Class A - - -
Class B - - -
Class C - - -
Net realized gains on investments:
Class A - - (17,270,178)
Class B - - (2,987,176)
Class C - - (359,988)
------------- ---------------- -------------
Total distributions - - (20,617,342)
------------- ---------------- -------------
Capital share transactions (note 5):
Proceeds from sales:
Class A 2,645,409 7,486,324 3,423,922
Class B 245,892 300,215 701,160
Class C 15,929 61,967 159,604
Proceeds from issuance of shares as a result of reinvested distributions:
Class A - - 17,184,998
Class B - - 2,913,962
Class C - - 351,595
Payments for redemptions of shares:
Class A (2,415,027) (7,690,490) (4,242,274)
Class B (1,260,779) (1,080,529) (1,427,099)
Class C (127,896) (137,446) (224,061)
------------- ---------------- -------------
Increase (decrease) in net assets from capital share transactions (896,472) (1,059,959) 18,841,807
------------- ---------------- -------------
Total increase (decrease) in net assets 7,862,403 (4,602,036) (30,526,448)
Net assets at beginning of period 31,123,799 35,725,835 66,252,283
------------- ---------------- -------------
Net assets at end of period* $ 38,986,202 $ 31,123,799 $ 35,725,835
============= ================ =============
* Including undistributed (distributions in excess of) net investment income $ - $ - $ -
</Table>
See accompanying notes to financial statements.
82/83
<Page>
<Table>
<Caption>
HORIZON FUND
----------------------------------------------------
PERIOD FROM
YEAR ENDED OCTOBER 1, YEAR ENDED
JULY 31, 2001 TO JULY 31, SEPTEMBER 30,
2003 2002 2001
--------------- ---------------- ---------------
Operations:
Investment income (loss) - net $ (145,887) $ (262,466) $ (661,808)
Net realized gains (losses) on investments 106,189 (1,803,623) (13,832,622)
Net change in unrealized appreciation or depreciation of
investments and futures contracts 2,780,332 (1,437,501) (28,342,114)
--------------- ---------------- ---------------
Increase (decrease) in net assets resulting from operations 2,740,634 (3,503,590) (42,836,544)
--------------- ---------------- ---------------
Distributions to shareholders from:
Investment income - net:
Class A - - -
Class B - - -
Class C - - -
Net realized gains on investments:
Class A - - (9,628,296)
Class B - - (4,375,595)
Class C - - (390,723)
--------------- ---------------- ---------------
Total distributions - - (14,394,614)
--------------- ---------------- ---------------
Capital share transactions (note 5):
Proceeds from sales:
Class A 2,351,168 1,969,386 6,031,604
Class B 468,067 539,921 1,569,835
Class C 30,865 46,322 270,628
Proceeds from issuance of shares as a result of reinvested distributions:
Class A - - 9,409,680
Class B - - 4,048,610
Class C - - 374,664
Payments for redemptions of shares:
Class A (4,374,640) (5,178,717) (12,322,741)
Class B (2,412,896) (2,842,922) (5,184,908)
Class C (183,704) (306,392) (537,056)
--------------- ---------------- ---------------
Increase (decrease) in net assets from capital share transactions (4,121,140) (5,772,402) 3,660,316
--------------- ---------------- ---------------
Total increase (decrease) in net assets (1,380,506) (9,275,992) (53,570,842)
Net assets at beginning of period 29,994,972 39,270,964 92,841,806
--------------- ---------------- ---------------
Net assets at end of period* $ 28,614,466 $ 29,994,972 $ 39,270,964
=============== ================ ===============
* Including undistributed (distributions in excess of) net investment income $ - $ - $ -
<Caption>
INDEX 500 FUND
----------------------------------
YEAR ENDED YEAR ENDED
JULY 31, JULY 31,
2003 2002
--------------- ----------------
Operations:
Investment income (loss) - net $ 195,811 $ 157,436
Net realized gains (losses) on investments (1,268,830) (3,219,179)
Net change in unrealized appreciation or depreciation of
investments and futures contracts 3,979,611 (8,585,433)
--------------- ----------------
Increase (decrease) in net assets resulting from operations 2,906,592 (11,647,176)
--------------- ----------------
Distributions to shareholders from:
Investment income - net:
Class A (161,303) (143,635)
Class B (32,533) (6,716)
Class C (3,928) (649)
Net realized gains on investments:
Class A - -
Class B - -
Class C - -
--------------- ----------------
Total distributions (197,764) (151,000)
--------------- ----------------
Capital share transactions (note 5):
Proceeds from sales:
Class A 2,690,168 4,652,626
Class B 1,464,655 1,997,234
Class C 303,908 362,915
Proceeds from issuance of shares as a result of reinvested distributions:
Class A 102,048 93,414
Class B 31,281 6,471
Class C 3,668 623
Payments for redemptions of shares:
Class A (2,199,256) (5,370,976)
Class B (3,651,839) (4,188,695)
Class C (418,075) (487,518)
--------------- ----------------
Increase (decrease) in net assets from capital share transactions (1,673,442) (2,933,906)
--------------- ----------------
Total increase (decrease) in net assets 1,035,386 (14,732,082)
Net assets at beginning of period 34,359,546 49,091,628
--------------- ----------------
Net assets at end of period* $ 35,394,932 $ 34,359,546
=============== ================
* Including undistributed (distributions in excess of) net investment income $ 13,500 $ 15,318
</Table>
See accompanying notes to financial statements.
84/85
<Page>
<Table>
<Caption>
REAL ESTATE SECURITIES
FUND
-----------------------------
YEAR ENDED YEAR ENDED
JULY 31, JULY 31,
2003 2002
------------- -------------
Operations:
Investment income (loss) - net $ 1,258,248 $ 599,322
Net realized gains (losses) on investments 244,069 324,588
Net change in unrealized appreciation or depreciation of investments
and futures contracts 8,144,191 1,180,088
------------- -------------
Increase (decrease) in net assets resulting from operations 9,646,508 2,103,998
------------- -------------
Distributions to shareholders from:
Investment income - net:
Class A (1,712,228) (502,926)
Class B (56,474) (3,574)
Class C - -
Net realized gains on investments:
Class A (765,118) (1,186,943)
Class B (31,160) (753)
Class C - -
------------- -------------
Total distributions (2,564,980) (1,694,196)
------------- -------------
Capital share transactions (note 5):
Proceeds from sales:
Class A 28,995,531 16,920,073
Class B 896,141 1,266,380
Class C - -
Proceeds from issuance of shares as a result of reinvested distributions:
Class A 2,069,443 1,132,267
Class B 78,756 4,086
Class C - -
Payments for redemptions of shares:
Class A (9,967,523) (3,548,144)
Class B (169,114) (120,245)
Class C - -
------------- -------------
Increase (decrease) in net assets from capital share transactions 21,903,234 15,654,417
------------- -------------
Total increase (decrease) in net assets 28,984,762 16,064,219
Net assets at beginning of year 33,400,127 17,335,908
------------- -------------
Net assets at end of year* $ 62,384,889 $ 33,400,127
============= =============
* Including undistributed (distributions in excess of) net investment income $ - $ 92,822
<Caption>
VENTURE FUND
-----------------------------
YEAR ENDED YEAR ENDED
JULY 31, JULY 31,
2003 2002
------------- -------------
Operations:
Investment income (loss) - net $ (493,887) $ (408,024)
Net realized gains (losses) on investments (2,979,654) 6,024,204
Net change in unrealized appreciation or depreciation of investments
and futures contracts 11,321,019 (15,478,121)
------------- -------------
Increase (decrease) in net assets resulting from operations 7,847,478 (9,861,941)
------------- -------------
Distributions to shareholders from:
Investment income - net:
Class A (9,242) -
Class B (798) -
Class C (927) -
Net realized gains on investments:
Class A (3,990,339) (3,292,173)
Class B (344,613) (271,697)
Class C (400,371) (72,757)
------------- -------------
Total distributions (4,746,290) (3,636,627)
------------- -------------
Capital share transactions (note 5):
Proceeds from sales:
Class A 16,953,363 23,934,179
Class B 813,948 2,199,878
Class C 4,255,775 1,327,144
Proceeds from issuance of shares as a result of reinvested distributions:
Class A 1,571,837 1,073,557
Class B 336,501 259,096
Class C 164,390 69,520
Payments for redemptions of shares:
Class A (15,623,532) (14,413,881)
Class B (852,981) (1,024,908)
Class C (4,471,630) (175,731)
------------- -------------
Increase (decrease) in net assets from capital share transactions 3,147,671 13,248,854
------------- -------------
Total increase (decrease) in net assets 6,248,859 (249,714)
Net assets at beginning of year 59,079,271 59,328,985
------------- -------------
Net assets at end of year* $ 65,328,130 $ 59,079,271
============= =============
* Including undistributed (distributions in excess of) net investment income $ - $ -
</Table>
See accompanying notes to financial statements.
86/87
<Page>
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2003
(1) ORGANIZATION
The Advantus Cornerstone Fund, Inc., the Advantus Enterprise Fund, Inc.,
the Advantus Horizon Fund, Inc., the Advantus Index 500 Fund, Inc., the Advantus
Real Estate Securities Fund, Inc. and the Advantus Venture Fund, Inc. (the
Funds) are registered under the Investment Company Act of 1940 (as amended) as
diversified, open-end management investment companies. The Funds' prospectus'
provide a detailed description of each Funds' investment objective, policies and
strategies.
The Funds currently have three classes of shares outstanding: Class A,
Class B and Class C shares, except for the Real Estate Securities Fund which has
never issued Class C shares. Effective July 25, 2003, however, all sales of
Class B and Class C shares in the Funds were suspended, except for sales
occurring in connection with the reinvestment of dividend and capital gains
distributions, if any, and exchanges of Class B and Class C shares of a Fund for
Class B and Class C shares of another Fund, respectively. Class A shares are
sold subject to a front-end sales charge. Class B shares were sold subject to a
contingent deferred sales charge payable upon redemption if redeemed within six
years of purchase. Class C shares were 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 Funds are summarized as
follows:
USE OF ESTIMATES
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make certain estimates and assumptions that affect the reported
amounts of assets and liabilities, including disclosure of contingent assets and
liabilities, as of the balance sheet date and the reported amounts of revenue
and expenses during the reporting period. Actual results could differ from those
estimates.
INVESTMENTS IN SECURITIES
Each Funds' 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
88
<Page>
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.
The pricing service may use models that price securities based on current yields
and relative security characteristics, such as coupon rate, maturity date,
issuer credit quality and prepayment speeds, as applicable. 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.
FUTURES TRANSACTIONS
To gain exposure to or protect itself from market changes, the Funds may
buy and sell financial futures contracts traded on any U.S. or foreign exchange.
The Funds also may buy and write put and call options on these futures
contracts. Risks of entering into futures contracts and related options include
the possibility of an illiquid market and that a change in the value of the
contract or option may correlate with changes in the value of the underlying
securities.
Upon entering into a futures contract, the Funds are required to deposit
either cash or securities in an amount (initial margin) equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Funds each day. The variation margin payments are equal
to the daily changes in the contract value and are recorded as unrealized gains
and losses. The Funds recognize a realized gain or loss when the contract is
closed or expires.
FEDERAL TAXES
The Funds' 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 Funds' policy is to make required minimum distributions prior to
December 31, in order to avoid federal excise tax.
For federal income tax purposes, the following Funds had capital loss
carryovers and/or post October losses at July 31, 2003 which, if not offset by
subsequent capital gains, will expire July 31, 2010 through July 31, 2012. It is
unlikely the Board of Directors will authorize a distribution of any net
realized capital gains until available capital loss carryovers have been offset
or expire:
<Table>
Cornerstone Fund $ 14,216,656
Enterprise Fund 20,854,384
Horizon Fund 15,819,328
Index 500 Fund 5,967,930
Real Estate Fund 520,770
Venture Fund 3,309,582
</Table>
89
<Page>
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 or realized gains were recorded by the
Funds.
The Funds may elect to utilize equalization debits by which a portion of
the costs of redemptions, which occurred during the year ended July 31, 2003,
would reduce net realized gain for tax purposes.
On the statement of assets and liabilities, as a result of permanent
book-to-tax differences, reclassification adjustments were made as follows:
<Table>
<Caption>
UNDISTRIBUTED ACCUMULATED ADDITIONAL
NET INVESTMENT REALIZED PAID IN
FUND INCOME GAIN (LOSS) CAPITAL
- ---- -------------- ----------- ----------
Cornerstone $ (1,942) $ 2,217 $ (275)
Enterprise 430,354 - (430,354)
Horizon 145,887 - (145,887)
Index 500 135 (135) -
Real Estate Securities 417,632 (428,859) 11,227
Venture 504,854 (13,337) (491,517)
</Table>
The tax character of distributions paid for the periods indicated is as
follows:
<Table>
<Caption>
YEAR ENDED PERIOD FROM YEAR ENDED
JULY 31, OCTOBER 1, 2001 SEPTEMBER 30,
FUND 2003 TO JULY 31, 2002 2001
- ---- ---------- ---------------- -------------
CORNERSTONE
DISTRIBUTIONS PAID FROM:
Ordinary income $ 568,927 $ 384,001 $ 411,000
Long-term capital gain - - -
ENTERPRISE
DISTRIBUTIONS PAID FROM:
Ordinary income - - 9,729,068
Long-term capital gain - - 10,888,274
HORIZON
DISTRIBUTIONS PAID FROM:
Ordinary income - - 4,147,789
Long-term capital gain - - 10,246,825
</Table>
90
<Page>
<Table>
<Caption>
YEAR ENDED JULY 31,
----------------------------
FUND 2003 2002
- ---- ---------- ----------
INDEX 500
DISTRIBUTIONS PAID FROM:
Ordinary income 197,764 151,000
Long-term capital gain - -
REAL ESTATE SECURITIES
DISTRIBUTIONS PAID FROM:
Ordinary income 2,151,694 1,127,977
Long-term capital gain 413,286 566,219
VENTURE
DISTRIBUTIONS PAID FROM:
Ordinary income 10,967 2,204,481
Long-term capital gain 4,735,323 1,432,146
</Table>
As of July 31, 2003, the components of distributable earnings on a tax
basis for each Fund are as follows:
<Table>
<Caption>
ACCUMULATED UNREALIZED
UNDISTRIBUTED LONG-TERM APPRECIATION
FUND ORDINARY INCOME GAIN (LOSS) (DEPRECIATION)
- ---- --------------- ------------- --------------
Cornerstone $ 57,583 $ (14,216,656) $ 5,692,267
Enterprise - (20,854,384) 2,983,901
Horizon - (15,819,328) 3,363,121
Index 500 13,500 (5,967,930) 2,498,500
Real Estate Securities 428,219 (520,770) 9,661,048
Venture - (3,205,064) 7,900,660
</Table>
DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income are declared and paid quarterly.
Realized gains, if any, are paid annually.
(3) INVESTMENT SECURITY TRANSACTIONS
For the year ended July 31, 2003, purchases of securities and proceeds from
sales, other than temporary investments in short-term securities, were as
follows:
<Table>
<Caption>
FUND PURCHASES SALES
- ---- ------------ -------------
Cornerstone $ 77,849,888 $ 78,705,257
Enterprise 20,051,349 19,383,398
Horizon 42,867,128 46,228,073
Index 500 1,334,467 4,067,583
Real Estate Securities 40,971,837 20,295,814
Venture 29,472,698 32,226,969
</Table>
(4) EXPENSES AND RELATED PARTY TRANSACTIONS
Enterprise Fund, Index 500 Fund, Real Estate Securities Fund and Venture
Fund each has an investment advisory agreement with Advantus
91
<Page>
Capital Management, Inc. (Advantus Capital), a wholly-owned subsidiary of
Securian Financial Group. Under these agreements, Advantus Capital manages the
Funds' assets and provides research, statistical and advisory services and pays
related office rental and executive expenses and salaries.
In April 2003, Advantus Capital (at that time also the investment adviser
to Cornerstone Fund and Horizon Fund) and certain companies affiliated with
Advantus Capital entered into a Strategic Alliance Agreement and a related
Purchase Agreement with Waddell & Reed Financial, Inc. (W&R), a leading U.S.
mutual fund firm, its affiliate, Waddell & Reed Ivy Investment Company (WRIICO),
and certain other companies affiliated with W&R. Under these agreements,
Advantus Capital agreed to sell to WRIICO its assets related to the Advantus
Funds. Advantus Capital has also recommended to the Board of Directors of the
Advantus Funds that each Advantus Fund be merged into an existing or newly
formed mutual fund managed by WRIICO in either Ivy Funds, Inc. (a Maryland
corporation) or Ivy Funds (a Massachusetts business trust), and the Board of
Directors has approved each Fund's merger subject to approval of the
shareholders of the Fund. It is currently anticipated that shareholders will be
presented with a merger proposal in early October, 2003. In connection with the
agreements discussed above, and effective May 1, 2003, the Board of Directors of
each of Cornerstone Fund and Horizon Fund appointed WRIICO to act as the
investment adviser to the Fund on an interim basis prior to the mergers. On
August 20, 2003, shareholders of Cornerstone Fund and Horizon Fund each approved
a definitive investment advisory agreement with WRIICO. WRIICO provides services
to Cornerstone Fund and Horizon Fund that are similar to the services provided
by Advantus Capital to the other Funds.
92
<Page>
Each of the Funds pays Advantus Capital, or WRIICO in the case of
Cornerstone and Horizon Funds, an annual fee, based on average net assets in the
following amounts (the fees paid to WRIICO are the same as the fees formerly
paid to Advantus Capital):
<Table>
<Caption>
FUND ANNUAL FEE
- --------------------------------------------------------------------------------
Cornerstone .70% of assets to $500 million; and .65% of assets
exceeding $500 million to $1 billion; and .60% of
assets exceeding $1 billion to $2 billion; and .55% of
assets exceeding $2 billion
Enterprise .70% of assets to $1 billion; and .68% of assets
exceeding $1 billion to $2 billion; and .66% of assets
exceeding $2 billion
Horizon .70% of assets to $1 billion; and .65% of assets
exceeding $1 billion to $2 billion; and .60% of assets
exceeding $2 billion
Index 500 .34% of assets to $500 million; and .30% of assets
exceeding $500 million to $1 billion; and .25% of
assets exceeding $1 billion to $2 billion; and .20% of
assets exceeding $2 billion.
Real Estate Securities .75% of assets to $1 billion; and .725% of assets
exceeding $1 billion to $2 billion; and .70% of assets
exceeding $2 billion.
Venture .70% of assets to $1 billion; and .68% of assets
exceeding $1 billion to $2 billion; and .66% of assets
exceeding $2 billion
</Table>
Advantus Capital has a sub-advisory agreement with the following registered
investment advisers. Under the sub-advisory agreements, Advantus Capital pays
the sub-advisers an annual fee based on average daily net assets, in the
following amounts:
<Table>
<Caption>
FUND SUB-ADVISOR ANNUAL FEE
- ------------- --------------------- ----------------------------------------
Enterprise Credit Suisse Asset .65% of assets to $425 million; and .60%
Management of assets exceeding $425 million to $850
million; and .55% of assets exceeding
$850 million to $1.150 billion; and .50%
of assets exceeding $1.150 billion to $2
billion and .45% of assets exceeding $2
billion
Venture State Street Research .65% of assets to $500 million; and .60%
and Management of assets exceeding $500 million to
$1 billion; and .50% of assets exceeding
$1 billion
</Table>
93
<Page>
The Funds have 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 Funds pay fees to Securian Financial Services, Inc. (Securian),
the underwriter of the Funds and a wholly-owned subsidiary of Securian Financial
Group, to be used to pay certain expenses incurred in the distribution,
promotion and servicing of the Funds 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. Prior to August 5, 2002, Securian was waiving the portion
of Class A Rule 12b-1 fees which exceeded, as a percentage of average daily net
assets, .15 percent in Enterprise, Index 500 and Venture, and .10 percent in the
Real Estate Securities Fund. Currently Securian is not waiving any 12b-1 fees.
Securian waived Class A 12b-1 fees in the amounts of $148, $98, $288, and $264
respectively, for the above Funds for the year ended July 31, 2003.
The Funds have engaged PFPC Global Fund Services to act as their transfer
agent, dividend disbursing agent and redemption agent and bear the expenses of
such services.
The Funds also bear certain other operating expenses including outside
directors' fees, custodian fees, registration fees, printing and shareholder
reporting fees, outside legal, auditing and accounting services, and other
miscellaneous expenses.
The Funds have entered in a shareholder and administrative services
agreement with Minnesota Life Insurance Company. Under this agreement, the Funds
pay a shareholder services fee, equal to $7 per shareholder account annually, to
Minnesota Life Insurance Company for shareholder services which Minnesota Life
Insurance Company provides. The Funds also pay Minnesota Life Insurance Company
an administrative services fee equal to $3,300 per month for accounting,
auditing, legal and other administrative services which Securian Financial Group
provides. Prior to March 1, 2003 the Funds paid Minnesota Life Insurance Company
an administrative services fee equal to $5,100 per month for the Real Estate
Securities Fund and $6,200 per month in all the remaining Funds.
VOLUNTARY FEE ABSORPTION
Advantus Capital has voluntarily agreed to absorb all Fund costs and
expenses that exceed 1.34% of Class A average daily net assets effective
February 1, 2003 (previously it was 1.24%) and 2.09% of Class B and C average
daily net assets effective February 1, 2003 (previously it was 1.99%) for the
Cornerstone Fund, all Fund costs and expenses that exceed 1.53% of Class A
average daily net assets effective February 1, 2003 (previously it was 1.38%)
and 2.28% of Class B and C average daily net assets effective
94
<Page>
February 1, 2003 (previously it was 2.23%) for the Enterprise Fund, all Fund
costs and expenses that exceed 1.40% of Class A average daily net assets
(previously it was 1.35%) and 2.15% of Class B and C average daily net assets
(previously it was 2.10%) for the Horizon Fund, all Fund costs and expenses
which exceed .85% of Class A average daily net assets and 1.60% of Class B and C
average daily net assets for the Index 500 Fund, and all Fund costs and expenses
that exceed 1.65% of Class A average daily net assets and 2.40% of Class B
average daily net assets for Real Estate Securities Fund. During the year ended
July 31, 2003, Advantus Capital voluntarily agreed to absorb $130,768, $125,880,
$312,856, $272,536, and $0, respectively, in expenses which were otherwise
payable by the Funds.
For the year ended July 31, 2003, sales charges received by Securian for
distributing the Funds' three classes of shares for Cornerstone, Enterprise,
Horizon, Index 500, Real Estate Securities, and Venture are $20,437, $11,729,
$29,496, $56,803, $65,805, and $56,803, respectively.
As of July 31, 2003 the ownership of shares by Minnesota Life and
subsidiaries and the directors and officers of the Funds as a whole was as
follows:
<Table>
<Caption>
PERCENTAGE
NUMBER OF OWNED
FUND SHARES OF CLASS
- ---- --------- ----------
Cornerstone
Class A 4,223,308 83.3%
Enterprise
Class A 3,564,912 83.3%
Horizon
Class A 25,274 1.4%
Index 500
Class A 209,332 13.4%
Class B 765 -%
Class C 11,022 8.6%
Real Estate
Class A 3,867,584 86.1%
Venture
Class A 4,054,136 89.2%
</Table>
For the year ended July 31, 2003, legal fees were paid to a law firm of
which the Funds' secretary is a partner, for Cornerstone, Enterprise, Horizon,
Index 500, Real Estate Securities, and Venture in the amount of $6,902, $6,687,
$6,262, $6,687, $6,902 and $6,262, respectively.
95
<Page>
(5) CAPITAL SHARE TRANSACTIONS
Transactions in shares for the year ended July 31, 2003, the period ended
July 31, 2002 and the year ended September 30, 2001, were as follows:
<Table>
<Caption>
CORNERSTONE FUND
-------------------------------------------
CLASS A
-------------------------------------------
2003 2002 2001
----------- ----------- -----------
Sold 953,861 590,303 361,247
Issued for reinvested distributions 26,878 15,571 16,815
Redeemed (820,963) (921,372) (551,305)
----------- ----------- -----------
159,776 (315,498) (173,243)
=========== =========== ===========
<Caption>
CORNERSTONE FUND
-------------------------------------------
CLASS B
-------------------------------------------
2003 2002 2001
----------- ----------- -----------
Sold 32,512 27,171 42,405
Issued for reinvested distributions 1,080 409 128
Redeemed (176,743) (170,656) (214,538)
----------- ----------- -----------
(143,151) (143,076) (172,005)
=========== =========== ===========
<Caption>
CORNERSTONE FUND
-------------------------------------------
CLASS C
-------------------------------------------
2003 2002 2001
----------- ----------- -----------
Sold 3,108 2,846 4,525
Issued for reinvested distributions 130 45 17
Redeemed (13,756) (14,734) (20,295)
----------- ----------- -----------
(10,518) (11,843) (15,753)
=========== =========== ===========
</Table>
96
<Page>
<Table>
<Caption>
ENTERPRISE FUND
-------------------------------------------
CLASS A
-------------------------------------------
2003 2002 2001
----------- ----------- -----------
Sold 387,759 892,251 374,323
Issued for reinvested distributions - - 1,621,745
Redeemed (357,941) (914,738) (429,560)
----------- ----------- -----------
29,818 (22,487) 1,566,508
=========== =========== ===========
<Caption>
ENTERPRISE FUND
-------------------------------------------
CLASS B
-------------------------------------------
2003 2002 2001
----------- ----------- -----------
Sold 41,549 38,348 67,534
Issued for reinvested distributions - - 302,899
Redeemed (208,776) (141,912) (151,151)
----------- ----------- -----------
(167,227) (103,564) 219,282
=========== =========== ===========
<Caption>
ENTERPRISE FUND
-------------------------------------------
CLASS C
-------------------------------------------
2003 2002 2001
----------- ----------- -----------
Sold 2,702 7,676 14,611
Issued for reinvested distributions - - 37,153
Redeemed (21,112) (17,929) (23,563)
----------- ----------- -----------
(18,410) 10,253 28,201
=========== =========== ===========
</Table>
97
<Page>
<Table>
<Caption>
HORIZON FUND
-------------------------------------------
CLASS A
-------------------------------------------
2003 2002 2001
----------- ----------- -----------
Sold 206,401 144,293 359,055
Issued for reinvested distributions - 466,476
Redeemed (392,676) (386,031) (685,126)
----------- ----------- -----------
(186,275) (241,738) 140,405
=========== =========== ===========
<Caption>
HORIZON FUND
-------------------------------------------
CLASS B
-------------------------------------------
2003 2002 2001
----------- ----------- -----------
Sold 46,501 42,647 92,722
Issued for reinvested distributions - 216,815
Redeemed (236,407) (230,525) (308,878)
----------- ----------- -----------
(189,906) (187,878) 659
=========== =========== ===========
<Caption>
HORIZON FUND
-------------------------------------------
CLASS C
-------------------------------------------
2003 2002 2001
----------- ----------- -----------
Sold 2,975 3,696 14,967
Issued for reinvested distributions - 20,334
Redeemed (17,599) (24,538) (32,274)
----------- ----------- -----------
(14,624) (20,842) 3,027
=========== =========== ===========
</Table>
98
<Page>
<Table>
<Caption>
INDEX 500 FUND
---------------------------------------------------------------------------
CLASS A CLASS B CLASS C
----------------------- ----------------------- -----------------------
2003 2002 2003 2002 2003 2002
---------- ---------- ---------- ---------- ---------- ----------
Sold 223,456 321,990 125,370 140,642 26,356 25,624
Issued for
reinvested
distributions 8,988 6,645 2,826 439 331 42
Redeemed (188,184) (374,275) (317,401) (304,910) (36,230) (35,675)
---------- ---------- ---------- ---------- ---------- ----------
44,260 (45,640) (189,205) (163,829) (9,543) (10,009)
========== ========== ========== ========== ========== ==========
<Caption>
REAL ESTATE SECURITIES FUND
-------------------------------------------------
CLASS A CLASS B
----------------------- -----------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Sold 2,469,727 1,428,832 76,397 104,942
Issued for
reinvested
distributions 179,565 101,578 6,905 342
Redeemed (867,006) (311,365) (14,709) (10,152)
---------- ---------- ---------- ----------
1,782,286 1,219,045 68,593 95,132
========== ========== ========== ==========
<Caption>
VENTURE FUND
---------------------------------------------------------------------------
CLASS A CLASS B CLASS C
----------------------- ----------------------- -----------------------
2003 2002 2003 2002 2003 2002
---------- ---------- ---------- ---------- ---------- ----------
Sold 1,498,212 1,639,269 75,124 154,746 377,025 98,695
Issued for
reinvested
distributions 145,410 79,848 32,270 19,807 15,801 5,281
Redeemed (1,436,138) (1,023,466) (81,316) (72,399) (429,870) (12,771)
---------- ---------- ---------- ---------- ---------- ----------
207,484 695,651 26,078 102,154 (37,044) 91,205
========== ========== ========== ========== ========== ==========
</Table>
(6) SECURITIES LENDING CONTRACTS
To enhance returns, the Funds loan securities to brokers in exchange for
collateral. The Funds receive a fee from the brokers measured as a percent of
the loaned securities. At July 31, 2003, the collateral is invested in cash
equivalents and repurchase agreements and must be 102% of the value of
securities loaned. The risk to the Funds is that the borrower may not provide
additional collateral when required or return the securities when due.
99
<Page>
Gain or loss in the market price of the securities loaned that may occur
during the term of the loan is reflected in the value of the Fund. Wells Fargo
Funds Management, LLC receives 25% of income on securities lending activities
and covers the expenses associated with securities lending activities.
As of July 31, 2003, the cash collateral of each Fund was invested as
follows:
<Table>
<Caption>
REPURCHASE SHORT-TERM
FUND NAME AGREEMENTS SECURITIES TOTAL
- --------- ---------- ---------- -----
Enterprise Fund 56% 44% 100%
Index 500 Fund 56% 44% 100%
Real Estate Securities Fund 56% 44% 100%
Venture Fund 56% 44% 100%
</Table>
At July 31, 2003, Enterprise Fund, Index 500 Fund, Real Estate Securities
Fund, and Venture Fund had securities valued at $15,020,091, $1,794,784,
$5,921,410, and $16,492,853 that were on loan to brokers and the Funds had
$15,478,749, $1,875,689, $6,139,431, and $17,174,007 in cash collateral,
respectively.
(7) STOCK INDEX FUTURES CONTRACTS
Investments in securities as of July 31, 2003, included securities valued
at $3,155,051 in the Index 500 Fund that were used as collateral to cover
initial margin deposits on six open September S&P 500 and thirteen open
September S&P 500 EMINI Futures purchase contacts. The market value of the open
purchase contracts as of July 31, 2003, was $2,126,963 with an unrealized loss
of $6,753.
(8) ILLIQUID SECURITIES
At July 31, 2003, each of the Funds' investments in illiquid securities is
limited to 10% of net assets at the time of purchase. At July 31, 2003,
investments in securities of the Venture Fund include an issue that is illiquid.
The value of this illiquid security held by the Venture Fund is $624 which
represents 0.0% of net assets.
(9) COMMISSION RECAPTURE
The Venture Fund participates in commission recapture agreements with
certain brokers whereby a portion of brokerage commissions on security trades
are refunded. The commissions recaptured are reported as commission
reimbursement income on the statement of operations.
For the year ended July 31, 2003, the Venture Fund recaptured $660 in
brokerage commissions.
100
<Page>
(10) FINANCIAL HIGHLIGHTS
ADVANTUS CORNERSTONE FUND
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,
YEAR ENDED 2001 TO YEAR ENDED SEPTEMBER 30,
JULY 31, JULY 31, ------------------------------------------------------
2003 2002 2001 2000 1999 1998
---------- ------------ --------- --------- --------- ---------
Net asset value, beginning of period $ 11.81 $ 12.59 $ 15.08 $ 15.14 $ 13.88 $ 18.68
---------- ------------ --------- --------- --------- ---------
Income from investment operations:
Net investment income .12 .08 .09 .06 .15 .16
Net gains (losses) on securities
(both realized and unrealized) .72 (.78) (2.50) .13 1.26 (3.04)
---------- ------------ --------- --------- --------- ---------
Total from investment operations .84 (.70) (2.41) .19 1.41 (2.88)
---------- ------------ --------- --------- --------- ---------
Less distributions:
Dividends from net investment income (.11) (.08) (.08) (.05) (.15) (.16)
Distributions from net realized gains - - - (.13) - (1.76)
Excess distributions of net realized
gains - - - (.06) - -
Tax return of capital - - - (.01) - -
---------- ------------ --------- --------- --------- ---------
Total distributions (.11) (.08) (.08) (.25) (.15) (1.92)
---------- ------------ --------- --------- --------- ---------
Net asset value, end of period $ 12.54 $ 11.81 $ 12.59 $ 15.08 $ 15.14 $ 13.88
========== ============ ========= ========= ========= =========
Total return (a) 7.23% (5.72)% (15.97)% 1.26% 10.13% (16.45)%
Net assets, end of period (in thousands) $ 63,549 $ 57,947 $ 65,766 $ 81,389 $ 92,657 $ 93,833
Ratios to average net assets:
Expenses 1.29% 1.24%(b) 1.24% 1.24% 1.21% 1.16%
Net investment income 1.05% .70%(b) .61% .43% .94% .98%
Expenses without waivers 1.50% 1.41%(b) 1.39% 1.34% 1.23% 1.25%
Net investment income without waivers .84% .53%(b) .46% .33% .92% .89%
Portfolio turnover rate (excluding
short-term securities) 123.4% 95.3% 147.9% 180.1% 78.7% 114.4%
</Table>
- ----------
(a) Total return figures presented for the periods stated above assume
reinvestment of distributions and do not include the effects of sales
charges. For periods less than one year, total return presented has not
been annualized.
(b) Adjusted to an annual basis.
101
<Page>
<Table>
<Caption>
CLASS B
----------------------------------------------------------------------------------------
PERIOD FROM
OCTOBER 1,
YEAR ENDED 2001 TO YEAR ENDED SEPTEMBER 30,
JULY 31, JULY 31, ------------------------------------------------------
2003 2002 2001 2000 1999 1998
---------- ------------ --------- --------- --------- ---------
Net asset value, beginning of period $ 11.60 $ 12.38 $ 14.86 $ 14.97 $ 13.73 $ 18.52
---------- ------------ --------- --------- --------- ---------
Income from investment operations:
Net investment income (loss) .04 -(c) (.02) (.02) .03 .03
Net gains (losses) on securities
(both realized and unrealized) .71 (.77) (2.46) .10 1.24 (3.02)
---------- ------------ --------- --------- --------- ---------
Total from investment operations .75 (.77) (2.48) .08 1.27 (2.99)
---------- ------------ --------- --------- --------- ---------
Less distributions:
Dividends from net investment income (.03) (.01) - - (.03) (.04)
Distributions from net realized gains - - - (.13) - (1.76)
Excess distributions of net realized
gains - - - (.06) - -
---------- ------------ --------- --------- --------- ---------
Total distributions (.03) (.01) - (.19) (.03) (1.80)
---------- ------------ --------- --------- --------- ---------
Net asset value, end of period $ 12.32 $ 11.60 $ 12.38 $ 14.86 $ 14.97 $ 13.73
========== ============ ========= ========= ========= =========
Total return (a) 6.55% (6.40)% (16.61)% .54% 9.26% (17.21)%
Net assets, end of period (in thousands) $ 4,812 $ 6,190 $ 8,382 $ 12,615 $ 18,611 $ 21,176
Ratios to average net assets:
Expenses 2.04% 1.99%(b) 1.99% 1.99% 1.96% 1.95%
Net investment income (loss) .30% (.05)%(b) (.14)% (.29)% .20% .18%
Expenses without waivers 2.25% 2.16%(b) 2.14% 2.09% 1.96% 1.95%
Net investment income (loss) without
waivers .09% (.22)%(b) (.29)% (.39)% .20% .18%
Portfolio turnover rate (excluding
short-term securities) 123.4% 95.3% 147.9% 180.1% 78.7% 114.4%
</Table>
- ----------
(a) Total return figures presented for the periods stated above assume
reinvestment of distributions and do not include the effects of sales
charges. For periods less than one year, total return presented has not
been annualized.
(b) Adjusted to an annual basis.
(c) Amount is less than $.01.
102
<Page>
<Table>
<Caption>
CLASS C
----------------------------------------------------------------------------------------
PERIOD FROM
OCTOBER 1,
YEAR ENDED 2001 TO YEAR ENDED SEPTEMBER 30,
JULY 31, JULY 31, ------------------------------------------------------
2003 2002 2001 2000 1999 1998
---------- ------------ --------- --------- --------- ---------
Net asset value, beginning of period $ 11.56 $ 12.35 $ 14.82 $ 14.93 $ 13.68 $ 18.48
---------- ------------ --------- --------- --------- ---------
Income from investment operations:
Net investment income (loss) .04 -(c) (.02) (.02) .03 .03
Net gains (losses) on securities
(both realized and unrealized) .71 (.78) (2.45) .10 1.25 (3.04)
---------- ------------ --------- --------- --------- ---------
Total from investment operations .75 (.78) (2.47) .08 1.28 (3.01)
---------- ------------ --------- --------- --------- ---------
Less distributions:
Dividends from net investment income (.03) (.01) - - (.03) (.03)
Distributions from net realized gains - - - (.13) - (1.76)
Excess distributions of net realized
gains - - - (.06) - -
---------- ------------ --------- --------- --------- ---------
Total distributions (.03) (.01) - (.19) (.03) (1.79)
---------- ------------ --------- --------- --------- ---------
Net asset value, end of period $ 12.28 $ 11.56 $ 12.35 $ 14.82 $ 14.93 $ 13.68
========== ============ ========= ========= ========= =========
Total return (a) 6.49% (6.42)% (16.58)% .54% 9.35% (17.28)%
Net assets, end of period (in thousands) $ 593 $ 680 $ 873 $ 1,281 $ 2,015 $ 3,094
Ratios to average net assets:
Expenses 2.04% 1.99%(b) 1.99% 1.99% 1.96% 1.95%
Net investment income (loss) .30% (.05)%(b) (.14)% (.29)% .21% .18%
Expenses without waivers 2.25% 2.16%(b) 2.14% 2.09% 1.96% 1.95%
Net investment income (loss) without
waivers .09% (.22)%(b) (.29)% (.39)% .21% .18%
Portfolio turnover rate (excluding
short-term securities) 123.4% 95.3% 147.9% 180.1% 78.7% 114.4%
</Table>
- ----------
(a) Total return figures presented for the periods stated above assume
reinvestment of distributions and do not include the effects of sales
charges. For periods less than one year, total return presented has not
been annualized.
(b) Adjusted to an annual basis.
(c) Amount is less than $.01.
103
<Page>
ADVANTUS ENTERPRISE FUND
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,
YEAR ENDED 2001 TO YEAR ENDED SEPTEMBER 30,
JULY 31, JULY 31, ------------------------------------------------------
2003 2002 2001 2000 1999 1998
---------- ------------ --------- --------- --------- ---------
Net asset value, beginning of period $ 6.44 $ 7.20 $ 20.77 $ 14.56 $ 11.32 $ 15.90
---------- ------------ --------- --------- --------- ---------
Income from investment operations:
Net investment loss (.09) (.08) (.03) (.19) (.14) (.13)
Net gains (losses) on securities
(both realized and unrealized) 1.96 (.68) (7.07) 6.40 3.38 (4.45)
---------- ------------ --------- --------- --------- ---------
Total from investment operations 1.87 (.76) (7.10) 6.21 3.24 (4.58)
---------- ------------ --------- --------- --------- ---------
Less distributions:
Distributions from net realized gains - - (6.47) - - -
---------- ------------ --------- --------- --------- ---------
Total distributions - - (6.47) - - -
---------- ------------ --------- --------- --------- ---------
Net asset value, end of period $ 8.31 $ 6.44 $ 7.20 $ 20.77 $ 14.56 $ 11.32
========== ============ ========= ========= ========= =========
Total return (a) 28.84% (10.56)% (44.09)% 42.65% 28.62% (28.81)%
Net assets, end of period (in thousands) $ 35,538 $ 27,357 $ 30,744 $ 56,087 $ 40,009 $ 31,844
Ratios to average net assets:
Expenses 1.50% 1.38%(b) 1.38% 1.25% 1.33% 1.27%
Net investmsent loss (1.25)% (1.14)%(b) (1.00)% (.92)% (.97)% (.91)%
Expenses without waivers 1.90% 1.69%(b) 1.60% 1.43% 1.45% 1.44%
Net investment loss without waivers (1.65)% (1.45)%(b) (1.22)% (1.10)% (1.09)% (1.08)%
Portfolio turnover rate (excluding
short-term securities) 64.0% 62.2% 105.4% 181.5% 99.3% 71.1%
</Table>
- ----------
(a) Total return figures presented for the periods stated above assume
reinvestment of distributions and do not include the effects of sales
charges. For periods less than one year, total return presented has not
been annualized.
(b) Adjusted to an annual basis.
104
<Page>
<Table>
<Caption>
CLASS B
----------------------------------------------------------------------------------------
PERIOD FROM
OCTOBER 1,
YEAR ENDED 2001 TO YEAR ENDED SEPTEMBER 30,
JULY 31, JULY 31, ------------------------------------------------------
2003 2002 2001 2000 1999 1998
---------- ------------ --------- --------- --------- ---------
Net asset value, beginning of period $ 5.78 $ 6.51 $ 19.63 $ 13.88 $ 10.88 $ 15.42
---------- ------------ --------- --------- --------- ---------
Income from investment operations:
Net investment loss (.13) (.16) (.07) (.35) (.26) (.24)
Net gains (losses) on securities
(both realized and unrealized) 1.75 (.57) (6.58) 6.10 3.26 (4.30)
---------- ------------ --------- --------- --------- ---------
Total from investment operations 1.62 (.73) (6.65) 5.75 3.00 (4.54)
---------- ------------ --------- --------- --------- ---------
Less distributions:
Distributions from net realized gains - - (6.47) - - -
---------- ------------ --------- --------- --------- ---------
Total distributions - - (6.47) - - -
---------- ------------ --------- --------- --------- ---------
Net asset value, end of period $ 7.40 $ 5.78 $ 6.51 $ 19.63 $ 13.88 $ 10.88
========== ============ ========= ========= ========= =========
Total return (a) 28.03% (11.22)% (44.59)% 41.43% 27.57% (29.44)%
Net assets, end of period (in thousands) $ 3,045 $ 3,345 $ 4,440 $ 9,086 $ 6,491 $ 5,903
Ratios to average net assets:
Expenses 2.25% 2.23%(b) 2.23% 2.10% 2.18% 2.14%
Net investment loss (2.00)% (1.99)%(b) (1.85)% (1.77)% (1.82)% (1.77)%
Expenses without waivers 2.65% 2.44%(b) 2.35% 2.10% 2.18% 2.14%
Net investment loss without waivers (2.40)% (2.20)%(b) (1.97)% (1.77)% (1.82)% (1.77)%
Portfolio turnover rate (excluding
short-term securities) 64.0% 62.2% 105.4% 181.5% 99.3% 71.1%
</Table>
- ----------
(a) Total return figures presented for the periods stated above assume
reinvestment of distributions and do not include the effects of sales
charges. For periods less than one year, total return presented has not
been annualized.
(b) Adjusted to an annual basis.
105
<Page>
<Table>
<Caption>
CLASS C
----------------------------------------------------------------------------------------
PERIOD FROM
OCTOBER 1,
YEAR ENDED 2001 TO YEAR ENDED SEPTEMBER 30,
JULY 31, JULY 31, ------------------------------------------------------
2003 2002 2001 2000 1999 1998
---------- ------------ --------- --------- --------- ---------
Net asset value, beginning of period $ 5.78 $ 6.50 $ 19.62 $ 13.87 $ 10.87 $ 15.41
---------- ------------ --------- --------- --------- ---------
Income from investment operations:
Net investment loss (.13) (.15) (.05) (.36) (.27) (.26)
Net gains (losses) on securities
(both realized and unrealized) 1.75 (.57) (6.60) 6.11 3.27 (4.28)
---------- ------------ --------- --------- --------- ---------
Total from investment operations 1.62 (.72) (6.65) 5.75 3.00 (4.54)
---------- ------------ --------- --------- --------- ---------
Less distributions:
Distributions from net realized gains - - (6.47) - - -
---------- ------------ --------- --------- --------- ---------
Total distributions - - (6.47) - - -
---------- ------------ --------- --------- --------- ---------
Net asset value, end of period $ 7.40 $ 5.78 $ 6.50 $ 19.62 $ 13.87 $ 10.87
========== ============ ========= ========= ========= =========
Total return (a) 28.03% (11.21)% (44.54)% 41.46% 27.48% (29.40)%
Net assets, end of period (in thousands) $ 403 $ 421 $ 541 $ 1,079 $ 812 $ 780
Ratios to average net assets:
Expenses 2.25% 2.23%(b) 2.23% 2.10% 2.18% 2.14%
Net investment loss (2.00)% (1.99)%(b) (1.85)% (1.77)% (1.82)% (1.78)%
Expenses without waivers 2.65% 2.44%(b) 2.35% 2.10% 2.18% 2.14%
Net investment loss without waivers (2.40)% (2.20)%(b) (1.97)% (1.77)% (1.82)% (1.78)%
Portfolio turnover rate (excluding
short-term securities) 64.0% 62.2% 105.4% 181.5% 99.3% 71.1%
</Table>
- ----------
(a) Total return figures presented for the periods stated above assume
reinvestment of distributions and do not include the effects of sales
charges. For periods less than one year, total return presented has not
been annualized.
(b) Adjusted to an annual basis.
106
<Page>
ADVANTUS HORIZON FUND
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,
YEAR ENDED 2001 TO YEAR ENDED SEPTEMBER 30,
JULY 31, JULY 31, ------------------------------------------------------
2003 2002 2001 2000 1999 1998
---------- ------------ --------- --------- --------- ---------
Net asset value, beginning of period $ 11.23 $ 12.63 $ 31.08 $ 26.88 $ 23.59 $ 23.06
---------- ------------ --------- --------- --------- ---------
Income from investment operations:
Net investment loss (.04) (.07) (.16) (.28) (.16) (.09)
Net gains (losses) on securities
(both realized and unrealized) 1.28 (1.33) (13.38) 5.41 5.77 3.48
---------- ------------ --------- --------- --------- ---------
Total from investment operations 1.24 (1.40) (13.54) 5.13 5.61 3.39
---------- ------------ --------- --------- --------- ---------
Less distributions:
Distributions from net realized gains - - (4.91) (.93) (2.32) (2.86)
---------- ------------ --------- --------- --------- ---------
Total distributions - - (4.91) (.93) (2.32) (2.86)
---------- ------------ --------- --------- --------- ---------
Net asset value, end of period $ 12.47 $ 11.23 $ 12.63 $ 31.08 $ 26.88 $ 23.59
========== ============ ========= ========= ========= =========
Total return (a) 11.04% (11.08)% (49.46)% 19.26% 24.74% 16.38%
Net assets, end of period (in thousands) $ 21,928 $ 21,830 $ 27,603 $ 63,568 $ 56,581 $ 47,183
Ratios to average net assets:
Expenses 1.37% 1.35%(b) 1.35% 1.33% 1.30% 1.36%
Net investment loss (.34)% (.58)%(b) (.85)% (.89)% (.61)% (.39)%
Expenses without waivers 2.50% 2.17%(b) 1.81% 1.42% 1.30% 1.37%
Net investment loss without waivers (1.47)% (1.40)%(b) (1.32)% (.97)% (.61)% (.40)%
Portfolio turnover rate (excluding
short-term securities) 156.6% 67.6% 129.6% 109.3% 60.1% 72.6%
</Table>
- ----------
(a) Total return figures presented for the periods stated above assume
reinvestment of distributions and do not include the effects of sales
charges. For periods less than one year, total return presented has not
been annualized.
(b) Adjusted to an annual basis.
107
<Page>
<Table>
<Caption>
CLASS B
----------------------------------------------------------------------------------------
PERIOD FROM
OCTOBER 1,
YEAR ENDED 2001 TO YEAR ENDED SEPTEMBER 30,
JULY 31, JULY 31, ------------------------------------------------------
2003 2002 2001 2000 1999 1998
---------- ------------ --------- --------- --------- ---------
Net asset value, beginning of period $ 10.27 $ 11.62 $ 29.26 $ 25.54 $ 22.65 $ 22.41
---------- ------------ --------- --------- --------- ---------
Income from investment operations:
Net investment loss (.13) (.16) (.30) (.49) (.32) (.22)
Net gains (losses) on securities
(both realized and unrealized) 1.18 (1.19) (12.43) 5.14 5.53 3.32
---------- ------------ --------- --------- --------- ---------
Total from investment operations 1.05 (1.35) (12.73) 4.65 5.21 3.10
---------- ------------ --------- --------- --------- ---------
Less distributions:
Distributions from net realized gains - - (4.91) (.93) (2.32) (2.86)
---------- ------------ --------- --------- --------- ---------
Total distributions - - (4.91) (.93) (2.32) (2.86)
---------- ------------ --------- --------- --------- ---------
Net asset value, end of period $ 11.32 $ 10.27 $ 11.62 $ 29.26 $ 25.54 $ 22.65
========== ============ ========= ========= ========= =========
Total return (a) 10.33% (11.71)% (49.85)% 18.40% 23.93% 15.48%
Net assets, end of period (in thousands) $ 6,128 $ 7,507 $ 10,679 $ 26,878 $ 23,561 $ 17,100
Ratios to average net assets:
Expenses 2.12% 2.10%(b) 2.10% 2.08% 2.04% 2.07%
Net investment loss (1.09)% (1.33)%(b) (1.60)% (1.63)% (1.34)% (1.11)%
Expenses without waivers 3.25% 2.92%(b) 2.56% 2.17% 2.04% 2.07%
Net investment loss without waivers (2.22)% (2.15)%(b) (2.07)% (1.72)% (1.34)% (1.11)%
Portfolio turnover rate (excluding
short-term securities) 156.6% 67.6% 129.6% 109.3% 60.1% 72.6%
</Table>
- ----------
(a) Total return figures presented for the periods stated above assume
reinvestment of distributions and do not include the effects of sales
charges. For periods less than one year, total return presented has not
been annualized.
(b) Adjusted to an annual basis.
108
<Page>
<Table>
<Caption>
CLASS C
----------------------------------------------------------------------------------------
PERIOD FROM
OCTOBER 1,
YEAR ENDED 2001 TO YEAR ENDED SEPTEMBER 30,
JULY 31, JULY 31, ------------------------------------------------------
2003 2002 2001 2000 1999 1998
---------- ------------ --------- --------- --------- ---------
Net asset value, beginning of period $ 10.34 $ 11.71 $ 29.44 $ 25.69 $ 22.79 $ 22.38
---------- ------------ --------- --------- --------- ---------
Income from investment operations:
Net investment loss (.13) (.16) (.30) (.51) (.36) (.24)
Net gains (losses) on securities
(both realized and unrealized) 1.20 (1.21) (12.52) 5.19 5.58 3.51
---------- ------------ --------- --------- --------- ---------
Total from investment operations 1.07 (1.37) (12.82) 4.68 5.22 3.27
---------- ------------ --------- --------- --------- ---------
Less distributions:
Distributions from net realized gains - - (4.91) (.93) (2.32) (2.86)
---------- ------------ --------- --------- --------- ---------
Total distributions - - (4.91) (.93) (2.32) (2.86)
---------- ------------ --------- --------- --------- ---------
Net asset value, end of period $ 11.41 $ 10.34 $ 11.71 $ 29.44 $ 25.69 $ 22.79
========== ============ ========= ========= ========= =========
Total return (a) 10.35% (11.71)% (49.84)% 18.37% 23.82% 15.74%
Net assets, end of period (in thousands) $ 558 $ 658 $ 988 $ 2,396 $ 2,540 $ 2,299
Ratios to average net assets:
Expenses 2.12% 2.10%(b) 2.10% 2.08% 2.04% 2.07%
Net investment loss (1.09)% (1.33)%(b) (1.60)% (1.63)% (1.34)% (1.10)%
Expenses without waivers 3.25% 2.92%(b) 2.56% 2.17% 2.04% 2.07%
Net investment loss without waivers (2.22)% (2.15)%(b) (2.07)% (1.72)% (1.34)% (1.10)%
Portfolio turnover rate (excluding
short-term securities) 156.6% 67.6% 129.6% 109.3% 60.1% 72.6%
</Table>
- ----------
(a) Total return figures presented for the periods stated above assume
reinvestment of distributions and do not include the effects of sales
charges. For periods less than one year, total return presented has not
been annualized.
(b) Adjusted to an annual basis.
109
<Page>
ADVANTUS INDEX 500 FUND
Per share data for a share of capital stock and selected information for each
year are as follows:
<Table>
<Caption>
CLASS A
------------------------------------------------------------------------
YEAR ENDED JULY 31,
------------------------------------------------------------------------
2003 2002 2001 2000 1999
---------- ---------- ---------- ---------- ------------
Net asset value, beginning of year $ 12.00 $ 15.92 $ 18.93 $ 17.74 $ 15.06
---------- ---------- ---------- ---------- ------------
Income from investment operations:
Net investment income .11 .11 .12 .10 .11
Net gains (losses) on securities
(both realized and unrealized) 1.05 (3.94) (2.98) 1.27 2.74
---------- ---------- ---------- ---------- ------------
Total from investment operations 1.16 (3.83) (2.86) 1.37 2.85
---------- ---------- ---------- ---------- ------------
Less distributions:
Dividends from net investment income (.11) (.09) (.10) (.03) (.10)
Distributions from net realized gains - - (.05) (.15) (.07)
---------- ---------- ---------- ---------- ------------
Total distributions (.11) (.09) (.15) (.18) (.17)
---------- ---------- ---------- ---------- ------------
Net asset value, end of year $ 13.05 $ 12.00 $ 15.92 $ 18.93 $ 17.74
========== ========== ========== ========== ============
Total return (a) 9.76% (24.14)% (15.12)% 7.67% 19.13%
Net assets, end of year (in thousands) $ 20,371 $ 18,196 $ 24,870 $ 24,723 $ 25,498
Ratios to average net assets:
Expenses .85% .75% .75% .75% .75%
Net investment income .93% .77% .72% .52% .64%
Expenses without waivers 1.68% 1.53% 1.43% 1.38% 1.43%
Net investment income (loss) without waivers .10% (.01)% .04% (.11)% (.04)%
Portfolio turnover rate (excluding
short-term securities) 4.3% 13.6% 17.2% 42.6% 25.3%
</Table>
- ----------
(a) Total return figures presented for the periods stated above assume
reinvestment of distributions and do not include the effects of sales
charges.
110
<Page>
<Table>
<Caption>
CLASS B
------------------------------------------------------------------------
YEAR ENDED JULY 31,
------------------------------------------------------------------------
2003 2002 2001 2000 1999
---------- ---------- ---------- ---------- ------------
Net asset value, beginning of year $ 11.78 $ 15.66 $ 18.68 $ 17.64 $ 15.01
---------- ---------- ---------- ---------- ------------
Income from investment operations:
Net investment income (loss) .03 (.01) (.02) (.06) (.03)
Net gains (losses) on securities
(both realized and unrealized) 1.02 (3.86) (2.93) 1.25 2.73
---------- ---------- ---------- ---------- ------------
Total from investment operations 1.05 (3.87) (2.95) 1.19 2.70
---------- ---------- ---------- ---------- ------------
Less distributions:
Dividends from net investment income (.03) (.01) (.02) - -
Distributions from net realized gains - - (.05) (.15) (.07)
---------- ---------- ---------- ---------- ------------
Total distributions (.03) (.01) (.07) (.15) (.07)
---------- ---------- ---------- ---------- ------------
Net asset value, end of year $ 12.80 $ 11.78 $ 15.66 $ 18.68 $ 17.64
========== ========== ========== ========== ============
Total return (a) 8.94% (24.80)% (15.77)% 6.71% 18.10%
Net assets, end of year (in thousands) $ 13,402 $ 14,559 $ 21,931 $ 28,077 $ 24,202
Ratios to average net assets:
Expenses 1.60% 1.60% 1.60% 1.60% 1.60%
Net investment income (loss) .18% (.08)% (.11)% (.33)% (.21)%
Expenses without waivers 2.43% 2.28% 2.18% 2.13% 2.16%
Net investment loss without waivers (.65)% (.76)% (.69)% (.86)% (.77)%
Portfolio turnover rate (excluding
short-term securities) 4.3% 13.6% 17.2% 42.6% 25.3%
</Table>
- ----------
(a) Total return figures presented for the periods stated above assume
reinvestment of distributions and do not include the effects of sales
charges.
111
<Page>
<Table>
<Caption>
CLASS C
------------------------------------------------------------------------
YEAR ENDED JULY 31,
------------------------------------------------------------------------
2003 2002 2001 2000 1999
---------- ---------- ---------- ---------- ------------
Net asset value, beginning of year $ 11.75 $ 15.63 $ 18.64 $ 17.60 $ 14.97
---------- ---------- ---------- ---------- ------------
Income from investment operations:
Net investment income (loss) .03 (.01) (.03) (.06) (.03)
Net gains (losses) on securities
(both realized and unrealized) 1.02 (3.86) (2.91) 1.25 2.73
---------- ---------- ---------- ---------- ------------
Total from investment operations 1.05 (3.87) (2.94) 1.19 2.70
---------- ---------- ---------- ---------- ------------
Less distributions:
Dividends from net investment income (.03) (.01) (.02) - -
Distributions from net realized gains - - (.05) (.15) (.07)
---------- ---------- ---------- ---------- ------------
Total distributions (.03) (.01) (.07) (.15) (.07)
---------- ---------- ---------- ---------- ------------
Net asset value, end of year $ 12.77 $ 11.75 $ 15.63 $ 18.64 $ 17.60
========== ========== ========== ========== ============
Total return (a) 8.97% (24.80)% (15.80)% 6.73% 18.03%
Net assets, end of year (in thousands) $ 1,622 $ 1,605 $ 2,291 $ 3,168 $ 2,910
Ratios to average net assets:
Expenses 1.60% 1.60% 1.60% 1.60% 1.60%
Net investment income (loss) .18% (.08)% (.11)% (.33)% (.21)%
Expenses without waivers 2.43% 2.28% 2.18% 2.13% 2.16%
Net investment loss without waivers (.65)% (.76)% (.69)% (.86)% (.77)%
Portfolio turnover rate (excluding
short-term securities) 4.3% 13.6% 17.2% 42.6% 25.3%
</Table>
- ----------
(a) Total return figures presented for the periods stated above assume
reinvestment of distributions and do not include the effects of sales
charges.
112
<Page>
ADVANTUS REAL ESTATE SECURITIES FUND
Per share data for a share of capital stock and selected information for each
period are as follows:
<Table>
<Caption>
CLASS A
------------------------------------------------------------------------
PERIOD FROM
FEBRUARY 25,
YEAR ENDED JULY 31, 1999 (c) TO
------------------------------------------------------- JULY 31,
2003 2002 2001 2000 1999
---------- ---------- ---------- ---------- ------------
Net asset value, beginning of period $ 11.93 $ 11.67 $ 11.23 $ 10.25 $ 10.02
---------- ---------- ---------- ---------- ------------
Income from investment operations:
Net investment income .48 .32 .51 .43 .18
Net gains on securities
(both realized and unrealized) 1.72 1.01 .47 1.00 .31
---------- ---------- ---------- ---------- ------------
Total from investment operations 2.20 1.33 .98 1.43 .49
---------- ---------- ---------- ---------- ------------
Less distributions:
Dividends from net investment income (.48) (.28) (.54) (.41) (.18)
Distributions from net realized gains (.23) (.79) - (.04) -
Excess distributions of net investment income - - - - (.08)
---------- ---------- ---------- ---------- ------------
Total distributions (.71) (1.07) (.54) (.45) (.26)
---------- ---------- ---------- ---------- ------------
Net asset value, end of period $ 13.42 $ 11.93 $ 11.67 $ 11.23 $ 10.25
========== ========== ========== ========== ============
Total return (a) 19.65% 12.31% 9.10% 14.89% 4.78%
Net assets, end of period (in thousands) $ 60,198 $ 32,269 $ 17,336 $ 11,704 $ 6,113
Ratios to average net assets:
Expenses 1.46% 1.50% 1.50% 1.50% 1.50%(b)
Net investment income 2.95% 2.83% 4.29% 4.26% 4.09%(b)
Expenses without waivers 1.46% 1.69% 1.99% 2.72% 3.49%(b)
Net investment income without waivers 2.95% 2.64% 3.81% 3.04% 2.10%(b)
Portfolio turnover rate (excluding
short-term securities) 48.2% 101.2% 173.1% 116.8% 51.5%
</Table>
- ----------
(a) Total return figures presented for the periods stated above assume
reinvestment of distributions and do not include the effects of sales
charges. For periods less than one year, total return presented has not
been annualized.
(b) Adjusted to an annual basis.
(c) Date shares became effectively registered.
113
<Page>
<Table>
<Caption>
CLASS B
------------------------------
PERIOD FROM
NOVEMBER 28,
YEAR ENDED 2002 (c) TO
JULY 31, JULY 31,
2003 2002
------------ ------------
Net asset value, beginning of period $ 11.89 $ 11.56
------------ ------------
Income from investment operations:
Net investment income .40 .11
Net gains on securities (both realized and unrealized) 1.70 1.23
------------ ------------
Total from investment operations 2.10 1.34
------------ ------------
Less distributions:
Dividends from net investment income (.40) (.22)
Distributions from net realized gains (.23) (.79)
------------ ------------
Total distributions (.63) (1.01)
------------ ------------
Net asset value, end of period $ 13.36 $ 11.89
============ ============
Total return (a) 18.73% 7.75%
Net assets, end of period (in thousands) $ 2,187 $ 1,131
Ratios to average net assets:
Expenses 2.21% 2.40%(b)
Net investment income 2.20% 1.29%(b)
Expenses without waivers 2.21% 2.44%(b)
Net investment income without waivers 2.20% 1.25%(b)
Portfolio turnover rate (excluding short-term securities) 48.2% 101.2%
</Table>
- ----------
(a) Total return figures presented for the periods stated above assume
reinvestment of distributions and do not include the effects of sales
charges. For periods less than one year, total return presented has not
been annualized.
(b) Adjusted to an annual basis.
(c) Inception date of Class B shares.
114
<Page>
ADVANTUS VENTURE FUND
Per share data for a share of capital stock and selected information for each
year are as follows:
<Table>
<Caption>
CLASS A
------------------------------------------------------------------------
YEAR ENDED JULY 31,
------------------------------------------------------------------------
2003 2002 2001 2000 1999
---------- ---------- ---------- ---------- ------------
Net asset value, beginning of year $ 12.25 $ 15.05 $ 11.47 $ 11.20 $ 12.03
---------- ---------- ---------- ---------- ------------
Income from investment operations:
Net investment income (loss) (.09) (.08) (.06) .05 .10
Net gains (losses) on securities
(both realized and unrealized) 1.74 (1.84) 4.04 .32 (.59)
---------- ---------- ---------- ---------- ------------
Total from investment operations 1.65 (1.92) 3.98 .37 (.49)
---------- ---------- ---------- ---------- ------------
Less distributions:
Dividends from net investment income -(b) - - (.06) (.09)
Distributions from net realized gains (.88) (.88) (.40) - (.23)
Dividends in excess of net investment income - - - (.04) -
Tax return of capital - - - - (.02)
---------- ---------- ---------- ---------- ------------
Total distributions (.88) (.88) (.40) (.10) (.34)
---------- ---------- ---------- ---------- ------------
Net asset value, end of year $ 13.02 $ 12.25 $ 15.05 $ 11.47 $ 11.20
========== ========== ========== ========== ============
Total return (a) 14.91% (13.27)% 35.18% 3.74% (3.89)%
Net assets, end of year (in thousands) $ 59,141 $ 53,071 $ 54,735 $ 31,371 $ 31,683
Ratios to average net assets:
Expenses 1.53% 1.27% 1.40% 1.40% 1.40%
Net investment income (loss) (.82)% (.57)% (.56)% .63% .81%
Expenses without waivers 1.53% 1.37% 1.51% 1.71% 1.64%
Net investment income (loss) without waivers (.82)% (.67)% (.67)% .32% .57%
Portfolio turnover rate (excluding
short-term securities) 54.2% 37.3% 37.8% 169.0% 103.9%
</Table>
- ----------
(a) Total return figures presented for the periods stated above assume
reinvestment of distributions and do not include the effects of sales
charges.
(b) Amount is less than $.01.
115
<Page>
<Table>
<Caption>
CLASS B
------------------------------------------------------------------------
YEAR ENDED JULY 31,
------------------------------------------------------------------------
2003 2002 2001 2000 1999
---------- ---------- ---------- ---------- ------------
Net asset value, beginning of year $ 11.90 $ 14.77 $ 11.36 $ 11.11 $ 11.94
---------- ---------- ---------- ---------- ------------
Income from investment operations:
Net investment loss (.17) (.17) (.16) (.04) -
Net gains (losses) on securities
(both realized and unrealized) 1.68 (1.82) 3.97 .32 (.58)
---------- ---------- ---------- ---------- ------------
Total from investment operations 1.51 (1.99) 3.81 .28 (.58)
---------- ---------- ---------- ---------- ------------
Less distributions:
Dividends from net investment income -(b) - - (.02) (.02)
Distributions from net realized gains (.88) (.88) (.40) - (.23)
Dividends in excess of net investment income - - - (.01) -
---------- ---------- ---------- ---------- ------------
Total distributions (.88) (.88) (.40) (.03) (.25)
---------- ---------- ---------- ---------- ------------
Net asset value, end of year $ 12.53 $ 11.90 $ 14.77 $ 11.36 $ 11.11
========== ========== ========== ========== ============
Total return (a) 14.13% (14.02)% 34.01% 2.89% (4.77)%
Net assets, end of year (in thousands) $ 5,097 $ 4,531 $ 4,114 $ 2,500 $ 3,115
Ratios to average net assets:
Expenses 2.28% 2.12% 2.25% 2.24% 2.25%
Net investment loss (1.57)% (1.42)% (1.41)% (.24)% (.04)%
Expenses without waivers 2.28% 2.12% 2.26% 2.45% 2.36%
Net investment loss without waivers (1.57)% (1.42)% (1.42)% (.45)% (.15)%
Portfolio turnover rate (excluding
short-term securities) 54.2% 37.3% 37.8% 169.0% 103.9%
</Table>
- ----------
(a) Total return figures presented for the periods stated above assume
reinvestment of distributions and do not include the effects of sales
charges.
(b) Amount is less than $.01.
116
<Page>
<Table>
<Caption>
CLASS C
------------------------------------------------------------------------
YEAR ENDED JULY 31,
------------------------------------------------------------------------
2003 2002 2001 2000 1999
---------- ---------- ---------- ---------- ------------
Net asset value, beginning of year $ 11.96 $ 14.83 $ 11.41 $ 11.15 $ 11.98
---------- ---------- ---------- ---------- ------------
Income from investment operations:
Net investment loss (.19) (.14) (.15) (.03) (.01)
Net gains (losses) on securities
(both realized and unrealized) 1.71 (1.85) 3.98 .32 (.57)
---------- ---------- ---------- ---------- ------------
Total from investment operations 1.52 (1.99) 3.83 .29 (.58)
---------- ---------- ---------- ---------- ------------
Less distributions:
Dividends from net investment income -(b) - - (.02) (.02)
Distributions from net realized gains (.88) (.88) (.40) - (.23)
Distributions in excess of net investment income - - - (.01) -
---------- ---------- ---------- ---------- ------------
Total distributions (.88) (.88) (.40) (.03) (.25)
---------- ---------- ---------- ---------- ------------
Net asset value, end of year $ 12.60 $ 11.96 $ 14.83 $ 11.41 $ 11.15
========== ========== ========== ========== ============
Total return (a) 14.15% (13.96)% 33.94% 2.95% (4.81)%
Net assets, end of year (in thousands) $ 1,089 $ 1,477 $ 479 $ 273 $ 467
Ratios to average net assets:
Expenses 2.28% 2.12% 2.25% 2.24% 2.25%
Net investment loss (1.57)% (1.42)% (1.41)% (.24)% (.04)%
Expenses without waivers 2.28% 2.12% 2.26% 2.45% 2.36%
Net investment loss without waivers (1.57)% (1.42)% (1.42)% (.45)% (.15)%
Portfolio turnover rate (excluding
short-term securities) 54.2% 37.3% 37.8% 169.0% 103.9%
</Table>
- ----------
(a) Total return figures presented for the periods stated above assume
reinvestment of distributions and do not include the effects of sales
charges.
(b) Amount is less than $.01.
117
<Page>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Advantus Cornerstone Fund, Inc.
Advantus Enterprise Fund, Inc.
Advantus Horizon Fund, Inc.
Advantus Index 500 Fund, Inc.
Advantus Real Estate Securities Fund, Inc.
Advantus Venture Fund, Inc.
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments in securities, of Advantus Cornerstone Fund, Inc.,
Advantus Enterprise Fund, Inc., Advantus Horizon Fund, Inc., Advantus Index 500
Fund, Inc., Advantus Real Estate Securities Fund, Inc., and Advantus Venture
Fund, Inc. as of July 31, 2003, and the related statements of operations and
statements of changes in net assets and the financial highlights for each of the
periods presented. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of July 31, 2003, by correspondence with the custodian or by
other appropriate auditing procedures. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Advantus Cornerstone Fund, Inc., Advantus Enterprise Fund, Inc., Advantus
Horizon Fund, Inc., Advantus Index 500 Fund, Inc., Advantus Real Estate
Securities Fund, Inc., and Advantus Venture Fund, Inc. as of July 31, 2003, and
the results of their operations, changes in their net assets and the financial
highlights for each of the periods presented, in conformity with accounting
principles generally accepted in the United States of America.
KPMG LLP
Minneapolis, MN
September 5, 2003
118
<Page>
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
The following information for federal income tax purposes is presented as
an aid to shareholders in reporting the distributions paid by the Funds in the
fiscal period ended July 31, 2003. Dividends for the 2003 calendar year will be
reported to you on Form 1099-Div in late January 2004. Shareholders should
consult a tax adviser on how to report these distributions for state and local
purposes.
For the fiscal year ended July 31, 2003 certain dividends paid by the funds may
be designated as qualified dividend income and subject to a maximum tax rate of
15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of
2003. Complete information will be reported in conjunction with your 2003 Form
1099-DIV.
ADVANTUS CORNERSTONE FUND
INCOME DISTRIBUTION - TAXABLE AS DIVIDEND INCOME, 100% QUALIFYING FOR DEDUCTION
BY CORPORATIONS
<Table>
<Caption>
CLASS A
PER
PAYABLE DATE SHARE
- ------------ -------
September 27, 2002 $ .0281
December 27, 2002 .0327
March 28, 2003 .0295
June 27, 2003 .0198
-------
$ .1101
=======
<Caption>
CLASS B
PER
PAYABLE DATE SHARE
- ------------ -------
September 27, 2002 $ .0056
December 27, 2002 .0107
March 28, 2003 .0090
-------
$ .0253
=======
<Caption>
CLASS C
PER
PAYABLE DATE SHARE
- ------------ -------
September 27, 2002 $ .0065
December 27, 2002 .0107
March 28, 2003 .0095
-------
$ .0267
=======
</Table>
119
<Page>
ADVANTUS INDEX 500 FUND
INCOME DISTRIBUTION - TAXABLE AS DIVIDEND INCOME, 100% QUALIFYING FOR DEDUCTIONS
BY CORPORATIONS
<Table>
<Caption>
CLASS A
PER
PAYABLE DATE SHARE
- ------------ -------
September 27, 2002 $ .0305
December 27, 2002 .0315
March 28, 2003 .0330
June 27, 2003 .0107
-------
$ .1057
=======
<Caption>
CLASS B
PER
PAYABLE DATE SHARE
- ------------ -------
September 27, 2002 $ .0066
December 27, 2002 .0097
March 28, 2003 .0123
-------
$ .0286
=======
<Caption>
CLASS C
PER
PAYABLE DATE SHARE
- ------------ -------
September 27, 2002 $ .0068
December 27, 2002 .0094
March 28, 2003 .0134
-------
$ .0296
=======
</Table>
120
<Page>
ADVANTUS REAL ESTATE SECURITIES FUND
INCOME DISTRIBUTION - TAXABLE AS DIVIDEND INCOME, 23.3% QUALIFYING FOR
DEDUCTIONS BY CORPORATIONS.
<Table>
<Caption>
CLASS A
PER
PAYABLE DATE SHARE
- ------------ -------
September 27, 2002 $ .1318
December 27, 2002 .0948
March 28, 2003 .1461
June 27, 2003 .1098
-------
$ .4825
=======
Capital gains distributions-taxable as
long-term capital gains, 20% rate.
December 17, 2002* $ .2235
March 28, 2003* .0068
-------
$ .2303
=======
</Table>
* Includes $.1109 of short-term capital gains (taxable as dividend income).
<Table>
<Caption>
CLASS B
PER
PAYABLE DATE SHARE
- ------------ -------
September 27, 2002 $ .1124
December 27, 2002 .0747
March 28, 2003 .1263
June 21, 2002 .0894
-------
$ .4028
=======
Capital gains distributions-taxable as
long-term capital gains, 20% rate.
December 17, 2002* $ .2235
March 28, 2003* .0068
-------
$ .2303
=======
</Table>
* Includes $.1109 of short-term capital gains (taxable as dividend income).
121
<Page>
ADVANTUS VENTURE FUND
INCOME DISTRIBUTION - TAXABLE AS DIVIDEND INCOME, 0.0% QUALIFYING FOR DEDUCTIONS
BY CORPORATIONS.
<Table>
<Caption>
CLASS A, CLASS B AND CLASS C
PER
PAYABLE DATE SHARE
- ------------ -------
Capital gains distributions-taxable as
long-term capital gains, 20% rate.
December 17, 2002* $ .8774
=======
</Table>
* Includes $.0020 of short-term capital gains (taxable as dividend income).
122
<Page>
ADVANTUS FUNDS
DIRECTORS AND EXECUTIVE OFFICERS
Under Minnesota law, the Board of Directors of each Fund has overall
responsibility for managing the Fund in good faith and in a manner reasonably
believed to be in the best interests of the Fund. The directors meet
periodically throughout the year to oversee the Fund's activities, review
contractual arrangements with companies that provide services to the Fund, and
review the performance of the Fund. Certain of the directors are considered
"interested persons" (as defined in the Investment Company Act of 1940) of the
Fund primarily by reason of their engagement as officers of the Fund's
investment adviser, Advantus Capital Management, Inc. ("Advantus Capital") or
Waddell & Reed Ivy Investment Company ("WRIICO"), or as officers of companies
affiliated with Advantus Capital or WRIICO, including Minnesota Life Insurance
Company ("Minnesota Life"). The remaining directors, because they are not
interested persons of the Fund, are considered independent ("Independent
Directors") and are not employees or officers of, and have no financial interest
in, Advantus Capital, WRIICO, Minnesota Life or their other affiliates. A
majority of the Board of Directors is comprised of Independent Directors.
The individuals listed in the table below serve as directors and officers of
each Fund, and also serve in the same capacity for each of the other six
Advantus Funds (the Advantus Funds are the twelve registered investment
companies bearing the Advantus name, consisting of 29 portfolios, for which
Advantus Capital, WRIICO or an affiliate of WRIICO serves as the investment
adviser). Only executive officers and other officers who perform policy-making
functions with the Fund are listed. None of the directors is a director of any
public company (a company required to file reports under the Securities Exchange
Act of 1934) or of any registered investment companies other than the Advantus
Funds. Each director serves for an indefinite term, until his or her
resignation, death or removal.
<Table>
<Caption>
POSITION WITH FUND
NAME, ADDRESS(1) AND LENGTH OF PRINCIPAL OCCUPATION(S)
AND AGE TIME SERVED DURING PAST 5 YEARS
- -------------------------------------------------------------------------------------------------------------------------------
INTERESTED DIRECTORS
William N. Westhoff Director since Retired since July 2002, prior thereto President, Treasurer and Director,
Age: 56 July 23, 1998 Advantus Capital Management, Inc.; Senior Vice President and Treasurer,
Minnesota Life Insurance Company since April 1998; Senior Vice President,
Global Investments, American Express Financial Corporation, Minneapolis,
Minnesota, from August 1994 to October 1997
INDEPENDENT DIRECTORS
Ralph D. Ebbott Director since Retired, Vice President and Treasure of Minnesota Mining and Manufacturing
Age: 76 February 25, 1985 Company (industrial and consumer products) through June 1989
William C. Melton Director since Founder and President of Melton Research Inc. since 1997; member of the
Age: 55 April 25, 2002 Advisory Board of Macroeconomic Advisors LLC since 1998; member, Minneapolis
StarTribune Board of Economists since 1986; member, State of Minnesota Council
of Economic Advisors from 1988 to 1994; various senior positions at American
Express Financial Advisors (formerly Investors Diversified Services and,
thereafter, IDS/American Express) from 1982 through 1997, including Chief
Economist and, thereafter, Chief International Economist
Ellen S. Berscheid Director since Regents' Professor of Psychology at the University of Minnesota
Age: 66 October 22, 1985
</Table>
123
<Page>
<Table>
OTHER EXECUTIVE OFFICERS
Dianne M. Orbison President since President and Treasurer, Advantus Capital Management, Inc.; Vice President and
Age: 51 July 25, 2002 Treasurer, Minnesota Life Insurance Company; Vice President and Treasurer,
Minnesota Mutual Companies, Inc.; Vice President and Treasurer, Securian
Financial Group, Inc.; Vice President and Treasurer, Securian Holding Company;
President and Treasurer, MIMLIC Funding, Inc. (entity holding legal title to
bonds beneficially owned by certain clients of Advantus Capital); President and
Treasurer, MCM Funding 1997-1, Inc. and MCM Funding 1998-1, Inc. (entities
holding legal title to mortgages beneficially owned by certain clients of
Advantus Capital)
Gary M. Kleist Vice President and Vice President - Chief Operations Officer, Advantus Capital Management, Inc.;
Age: 43 Treasurer since Second Vice President, Minnesota Life Insurance Company; Vice President and
July 24, 2003 Secretary/Treasurer, MIMLIC Funding, Inc. (entity holding legal title to bonds
beneficially owned by certain clients of Advantus Capital); Financial Vice
President, MCM Funding 1997-1, Inc. and MCM Funding 1998-1, Inc. (entities
holding legal title to mortgages beneficially owned by certain clients of
Advantus Capital); Vice President and Secretary, MMLIC Imperial Corporation.
Michael J. Radmer Secretary since Partner with the law firm of Dorsey & Whitney LLP
Dorsey & Whitney LLP February 25, 1985
50 South Sixth Street
Minneapolis,
Minnesota 55402
Age: 58
</Table>
- ----------
(1) Unless otherwise noted, the address of each director and officer is the
address of the Funds: 400 Robert Street North, St. Paul, Minnesota 55101.
The Fund's Statement of Additional Information (SAI) includes additional
information about Fund directors, and is available, without charge, upon
request. You may request a copy of the current SAI by telephoning Advantus
Shareholder Services, toll free, at (800) 665-6005.
124
<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.
125
<Page>
AUTOMATIC INVESTMENT PLAN: This special purchase plan enables you to open an
Advantus Fund account for as little as $500 when you agree to make investments
of not less than $50 under the plan 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 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 Securian Financial Services, Inc., distributor of
the
126
<Page>
Funds. Contact your representative for information and a prospectus containing
more complete information including charges and expenses, for any of the
Advantus Funds you are interested in. Read the prospectus carefully before
investing. To find a Registered Representative near you, call the toll-free
service line (1-800-665-6005) or visit www.AdvantusFunds.com.
MINIMUM INVESTMENTS: Minimum lump-sum initial investment is $1,000 ($500 for
qualified accounts and accounts covered by an automatic investment plan).
Minimum subsequent investment is $50.
THE FUND'S MANAGER
Advantus Capital Management, Inc., investment adviser to each of the Funds
except Advantus Cornerstone Fund, Inc., Advantus Horizon Fund, Inc. and Advantus
Spectrum Fund, Inc., 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., Advantus Enterprise Fund, Inc., and Advantus
Venture Fund, Inc., the sub-adviser, Templeton Investment Counsel, Inc., Credit
Suisse Asset Management, LLC, and State Street Research & Management Company,
respectively, selects the Fund's investments.) WRIICO serves as the investment
adviser to each of Advantus Cornerstone Fund, Inc., Advantus Horizon Fund, Inc.
and Advantus Spectrum Fund, Inc., and selects and reviews the investments for
each of those Funds.
Advantus Capital Management, Inc. manages nine mutual funds containing $2.3
billion in assets in addition to $13.5 billion in assets for other clients.
Advantus Capital's seasoned portfolio managers average more than 15 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
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THIS REPORT HAS BEEN PREPARED FOR SHAREHOLDERS AND MAY BE DISTRIBUTED
TO OTHERS ONLY IF PRECEDED OR ACCOMPANIED BY THE CURRENT APPLICABLE
MUTUAL FUND PROSPECTUS.
READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.
[ADVANTUS(TM) CAPITAL MANAGEMENT LOGO]
Distributed by:
SECURIAN FINANCIAL SERVICES, INC.
Securities Dealer, Member NASD/SIPC.
Registered Investment Advisor
400 Robert Street North, St. Paul, MN 55101-2098
1.888.237.1838
3010-2003-9036
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SECURIAN FINANCIAL SERVICES, INC.
400 ROBERT STREET NORTH PRESORTED STANDARD
ST. PAUL, MN 55101-2098 U.S. POSTAGE PAID
ST. PAUL, MN
PERMIT NO. 3547
CHANGE SERVICE REQUESTED
F. 58297 Rev. 9-2003
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ITEM 2. CODE OF ETHICS.
Filed herewith as Exhibit 10(a)(1)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Directors of the Fund has determined that Ralph D. Ebbott, a member
of the Board's Audit Committee, possesses the technical attributes identified in
Instruction 2(b) of Item 3 to Form N-CSR to qualify as an "audit committee
financial expert," and has designated Mr. Ebbott as the Audit Committee's
financial expert. Mr. Ebbott is an "independent" Director pursuant to paragraph
(a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time. Applicable for annual reports filed for the first
fiscal year ending after December 15, 2003.
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ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant's disclosure controls
and procedures as conducted within 90 days of the filing date of this
Form N-CSR, the registrant's principal financial officer and principal
executive officer have concluded that those disclosure controls and
procedures provide reasonable assurance that the material information
required to be disclosed by the registrant on this report is recorded,
processed, summarized and reported within the time periods specified in
the Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal controls over
financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) that occurred during the registrant's last fiscal
half-year (the registrant's second fiscal half-year in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial
reporting.
ITEM 10. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant
intends to satisfy the Item 2 requirements through filing of an
exhibit:
Exhibit 99.CODE ETH attached hereto.
(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2
under the Investment Company Act of 1940 (17 CFR 270.30a-2):
Exhibit 99.CERT attached hereto.
(b) If the report is filed under Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, provide the certifications required by Rule 30a-2(b) under
the Investment Company Act of 1940 (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule
15d-14 under the Securities Exchange Act of
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1934 (17 CFR 240.13a-14(b) or 240.15d-14(b)) and Section 1350 of Chapter 63 of
Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A
certification furnished pursuant to this paragraph will not be deemed "filed"
for the purposes of Section 18 of the Securities Exchange Act of 1934 (15 U.S.C.
78r), or otherwise subject to the liability of that section. Such certification
will not be deemed to be incorporated by reference into any filing under the
Securities Act of 1933 or the Securities Exchange Act of 1934, except to the
extent that the registrant specifically incorporates it by reference:
Exhibit 99.906 Cert attached hereto
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Advantus Index 500 Fund, Inc.
By (Signature and Title) /s/Dianne M. Orbison
-----------------
Dianne M. Orbison, President
Date: September 29, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/Dianne M. Orbison
-----------------
Dianne M. Orbison, President (Principal Executive
Officer)
By (Signature and Title) /s/Gary M. Kleist
--------------
Gary M. Kleist, Treasurer (Principal Financial
Officer and Accounting
Officer)
Date: September 29, 2003