<PAGE>
[STRONG LOGO]
THE STRONG
LIFE STAGE SERIES
- ----------------------------------------------------------------
SEMI-ANNUAL REPORT o JUNE 30, 1999
The Strong Conservative Portfolio
The Strong Moderate Portfolio
The Strong Aggressive Portfolio
[PHOTO OF STRONG HEADQUARTERS IN BACKGROUND]
<PAGE>
LETTER FROM THE CHAIRMAN
Dear Strong Investor,
Having just returned from a business trip to Indianapolis, I was telling a
friend that almost everywhere I went--every freeway traveled, every side street
ventured down--bulldozers, cranes and backhoes were hard at work.
Indianapolis, like most American cities we visit these days, is in the midst of
a spectacular building boom. A sea of yellow construction equipment is washing
over the nation's landscape.
It is the latest chapter in the unbelievable economic expansion that has blessed
this country--almost without pause--since 1982. The signs of prosperity are
everywhere:
o Highways jammed with people on their way to do business.
o "Help Wanted" signs in more store windows than most of us have ever
seen at one time.
o Consumer confidence is at an all-time high. Shopping carts are stuffed
with personal computers, printers, software and all sorts of related
high-tech equipment transforming the lives of Americans.
o Restaurants are packed almost every night of the week with people who
have money to spend.
We are fortunate to be living in one of the greatest economic booms in recorded
history. Likewise, we should be grateful for the opportunity to live in this
incredibly prosperous time. We should also remember that nothing lasts forever.
The nation's economic engine is running near full capacity. After eight years of
continuous growth, the American economy is beginning to overheat. It's that
strain on the system that has Mr. Greenspan's Federal Reserve, which is
responsible for managing the economy and keeping inflation at reasonable levels,
obviously concerned.
The Fed's most powerful inflation-fighting tool is its ability to manage
interest rates. Although it is a blunt instrument, raising interest rates is
very effective in rapidly slowing the rate of growth in the economy. For
example, when rates go up, it doesn't take long to see a drop in both the
construction of new homes and the refinancing of mortgage loans. Likewise, it
wouldn't be long before some of those bulldozers and backhoes in Indianapolis
were sidelined.
The Federal Reserve has an awesome responsibility. While they want the economy
to move ahead, they can't let their hopes override common sense. The Fed has
become increasingly worried about excessive valuations in the stock market and
the possibility that, left unchecked, a financial bubble could occur.
Make no mistake about it: Here at Strong, we are bullish on the long-term
prospects for America. But, in the short term, expectations of what the stock
market and the U.S. economy can continue to deliver seem inflated. For that
reason, this could be a good time to complement your portfolio's stock holdings
with more conservative money market and short-term bond funds.
/s/ Dick
<PAGE>
THE STRONG
LIFE STAGE SERIES
------
SEMI-ANNUAL REPORT o JUNE 30, 1999
TABLE OF CONTENTS
INVESTMENT REVIEW
The Strong Life Stage Portfolios .................................2
FINANCIAL INFORMATION
Schedules of Investments in Securities ...........................4
Statements of Assets and Liabilities .............................5
Statements of Operations .........................................6
Statements of Changes in Net Assets ..............................7
Notes to Financial Statements ....................................8
FINANCIAL HIGHLIGHTS .................................................10
<PAGE>
==========
THE STRONG LIFE STAGE PORTFOLIOS
-----------==========-----------
PORTFOLIO
HIGHLIGHTS
o The Strong Common Stock Fund was the strongest contributor to the
portfolios' outperformance.
o The portfolios benefited significantly from their underweighted positions
in the defensive consumer staple and healthcare sectors, which were notable
as the only market sectors that actually declined during the period.
o The Strong Advantage and Short-Term Bond Funds were strong performers in
the fixed-income portion of the portfolios.
- --------------------------------------------------------------------------------
TOTAL RETURNS(1)
As of 6-30-99
CONSERVATIVE PORTFOLIO
Since Inception 7.74%
(on 12-31-98)
MODERATE PORTFOLIO
Since Inception 8.90%
(on 12-31-98)
AGGRESSIVE PORTFOLIO
Since Inception 13.40%
(on 12-31-98)
- --------------------------------------------------------------------------------
INVESTMENT
PERSPECTIVES
In the six months since the inception of the Strong Life Stage Portfolios, all
three delivered solid returns. The Conservative Portfolio posted a 7.74% return,
the Moderate Portfolio 8.90%, and the Aggressive Portfolio returned 13.40%. In a
strong market for stocks, all four of the component equity funds in the
portfolio performed better than the benchmark S&P 500 Stock Index for the
period. On the fixed-income side, all but one of the component funds exceeded
the performance of the benchmark Lehman Brothers 1-3 Year Government/Corporate
Bond Index.
As the strongest contributor on the equity side, the Strong Common Stock Fund
benefited primarily from its overweighting in technology issues and advantageous
stock selection within the sector. Energy stocks, particularly the oil service
group, were also significant contributors to outperformance. The Strong Growth
Fund was another particularly strong performer over this period. The Fund's
substantial overweighting in technology issues and its near-zero exposure to the
out-of-favor consumer staples sector during the period were drivers of
performance.
In the fixed-income markets, an environment of rising bond yields and falling
bond prices made for tough sledding. The Advantage Fund was a clear winner,
easily outpacing the benchmark Lehman index thanks to its focus on very short
maturity bonds and corresponding low interest rate sensitivity. The Short-Term
Bond Fund also exceeded the return of the bond index, but by a lesser margin. In
the Government Securities Fund, whose interest rate sensitivity is greater than
that of the benchmark index, the declines in bond prices more than offset the
income earned during the period.
--------------------
...all three
portfolios delivered
solid returns.
--------------------
- --------------------------------------------------------------------------------
1 Total Return is not annualized and measures aggregate change in the value
of an investment in the Fund, assuming reinvestment of dividends and
capital gains.
2
<PAGE>
In anticipation of tightening moves by the Fed, bond investors pushed up yields
on Treasury notes by about one and a quarter percentage points from late last
year. Bond prices, which move in the opposite direction of yields, fell about 5%
on average from year-end, more than wiping out interest income for the six-month
period. The stock market's reaction to higher interest rates was muted as rising
corporate earnings estimates have largely offset their impact. For the first
time in several years, market action broadened out significantly in the second
quarter to include the mid- and small-cap sectors.
We believe the key to the markets' future over the near term is the pace of
economic growth. Unless the economy cools off, the Fed may be forced to raise
interest rates again. While this is a potential negative for the stock market,
stocks have shown they can withstand modest hikes in interest rates.
Thank you for your investment in the Strong Life Stage Portfolios.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 12-30-98 to 6-30-99
[GRAPH]
THE STRONG THE STRONG THE STRONG S&P 500
CONSERVATIVE MODERATE AGGRESSIVE Stock
PORTFOLIO PORTFOLIO PORTFOLIO Index*
12-98 10,000 10,000 10,000 10,000
1-99 10,260 10,330 10,470 10,418
2-99 10,120 10,120 10,180 10,094
3-99 10,410 10,540 10,720 10,498
4-99 10,571 10,610 10,960 10,905
5-99 10,480 10,450 10,740 10,647
6-99 10,774 10,890 11,340 11,238
This graph, prepared in accordance with SEC regulations, compares a $10,000
investment in each portfolio, made at its inception, with the performance of the
Standard and Poor's 500 Stock Index ("S&P 500"). Results include the
reinvestment of all dividends and capital gains distributions. Performance is
historical and does not represent future results. Investment returns and
principal value vary, and you may have a gain or loss when you sell shares.
- --------------------------------------------------------------------------------
* The S&P 500 is an unmanaged index generally representative of the U.S.
stock market. Source of the S&P index data is Standard & Poor's Micropal.
YOUR PORTFOLIOS'
APPROACH
THE STRONG LIFE STAGE PORTFOLIOS CONSIST OF THREE DIVERSIFIED INVESTMENT
PORTFOLIOS DESIGNED TO PURSUE EITHER CONSERVATIVE, MODERATE, OR AGGRESSIVE
INVESTMENT OBJECTIVES BY INVESTING IN A COMBINATION OF STOCK, BOND, AND CASH
INVESTMENTS. EACH PORTFOLIO IS COMMONLY REFERRED TO AS A "FUND OF FUNDS" BECAUSE
ITS ASSETS ARE INVESTED IN A NUMBER OF OTHER STRONG MUTUAL FUNDS. THE FUNDS
OFFER A "ONE-STOP" SOLUTION OF ASSET ALLOCATION, DIVERSIFICATION, AND
SIMPLICITY, AND MAY APPEAL TO INVESTORS LOOKING TO SIMPLIFY THE INVESTMENT
SELECTION PROCESS FOR THEIR RETIREMENT ACCOUNTS.
- --------------------------------------------------------------------------------
MARKET
HIGHLIGHTS
o In the fixed-income markets, an environment of rising bond yields and
falling bond prices made for tough sledding.
o Deflationary fears were replaced by concern about inflation, with consumer
confidence holding at record-high levels and showing no sign of slowing.
o At the end of the reporting period, the Federal Reserve decided to raise
short-term interest rates by one-quarter point in response to economic
reports showing remarkable strength in the U.S. economy. But the committee
also changed their policy "bias" to neutral, suggesting that no further
rate hikes are imminent, and markets rallied on the news.
3
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
================================================================================
STRONG CONSERVATIVE PORTFOLIO
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
INVESTMENT COMPANY SECURITIES 94.9%
Strong Advantage Fund, Inc. 76,637 $ 761,005
Strong Blue Chip 100 Fund 22,509 393,463
Strong Common Stock Fund, Inc. 16,097 391,159
Strong Government Securities Fund, Inc. 18,507 191,553
Strong Growth Fund 15,215 396,359
Strong Growth and Income Fund 16,076 393,712
Strong Short-Term Bond Fund, Inc. 120,407 1,145,066
- --------------------------------------------------------------------------------
TOTAL INVESTMENT COMPANY SECURITIES (COST $3,590,427) 3,672,317
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 4.9%
COMMERCIAL PAPER
INTEREST BEARING, DUE UPON DEMAND
General Mills, Inc., 4.82% $ 100 100
Warner Lambert Company, 4.91% 169,900 169,900
Wisconsin Electric Power Company, 4.91% 21,500 21,500
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $191,500) 191,500
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES (COST $3,781,927) 99.8% 3,863,817
Other Assets and Liabilities, Net 0.2% 9,011
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $3,872,828
================================================================================
================================================================================
STRONG MODERATE PORTFOLIO
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
INVESTMENT COMPANY SECURITIES 94.9%
Strong Advantage Fund, Inc. 145,290 $ 1,442,731
Strong Blue Chip 100 Fund 128,013 2,237,675
Strong Common Stock Fund, Inc. 91,546 2,224,564
Strong Government Securities Fund, Inc. 140,347 1,452,591
Strong Growth Fund 86,529 2,254,068
Strong Growth and Income Fund 91,428 2,239,068
Strong Short-Term Bond Fund, Inc. 228,269 2,170,840
- --------------------------------------------------------------------------------
TOTAL INVESTMENT COMPANY SECURITIES (COST $13,660,950) 14,021,537
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 5.0%
COMMERCIAL PAPER
INTEREST BEARING, DUE UPON DEMAND
Pitney Bowes Credit Corporation, 4.82% $572,600 572,600
Warner Lambert Company, 4.91% 98,700 98,700
Wisconsin Electric Power Company, 4.91% 60,400 60,400
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $731,700) 731,700
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES (COST $14,392,650) 99.9% 14,753,237
Other Assets and Liabilities, Net 0.1% 27,220
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $14,780,457
================================================================================
================================================================================
STRONG AGGRESSIVE PORTFOLIO
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
INVESTMENT COMPANY SECURITIES 96.6%
Strong Blue Chip 100 Fund 41,771 $ 730,159
Strong Common Stock Fund, Inc. 29,088 706,830
Strong Government Securities Fund, Inc. 32,695 338,392
Strong Growth Fund 28,325 737,862
Strong Growth and Income Fund 29,324 718,143
Strong Short-Term Bond Fund, Inc. 17,689 168,219
- --------------------------------------------------------------------------------
TOTAL INVESTMENT COMPANY SECURITIES (COST $3,237,614) 3,399,605
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 3.3%
COMMERCIAL PAPER
INTEREST BEARING, DUE UPON DEMAND
General Mills, Inc., 4.82% $ 100 100
Warner Lambert Company, 4.91% 109,200 109,200
Wisconsin Electric Power Company, 4.91% 6,500 6,500
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $115,800) 115,800
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES (COST $3,353,414) 99.9% 3,515,405
Other Assets and Liabilities, Net 0.1% 2,885
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $3,518,290
================================================================================
LEGEND
- --------------------------------------------------------------------------------
(a) Short-term investments include any security which has a maturity of less
than one year.
Percentages are stated as a percent of net assets.
See Notes to Financial Statements.
4
<PAGE>
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
- -----------------------------------------------------------------------------------------------------
June 30, 1999 (Unaudited)
<CAPTION>
STRONG STRONG STRONG
CONSERVATIVE MODERATE AGGRESSIVE
PORTFOLIO PORTFOLIO PORTFOLIO
------------ --------- ----------
ASSETS:
Investments in Securities, at Value
(Cost of $3,781,927, $14,392,650
<S> <C> <C> <C>
and $3,353,414, respectively) $3,863,817 $14,753,237 $3,515,405
Dividends and Interest Receivable 8,918 27,124 2,799
Other Assets 20,663 15,963 15,953
--------- ---------- ---------
Total Assets 3,893,398 14,796,324 3,534,157
LIABILITIES:
Accrued Operating Expenses and Other Liabilities 20,570 15,867 15,867
---------- ----------- ----------
Total Liabilities 20,570 15,867 15,867
---------- ----------- ----------
NET ASSETS $3,872,828 $14,780,457 $3,518,290
========== =========== ==========
NET ASSETS CONSIST OF:
Capital Stock (par value and paid-in capital) $3,787,028 $14,369,275 $3,338,509
Undistributed Net Investment Income 2,316 71,921 9,690
Accumulated Net Realized Gain (Loss) 1,593 (21,326) 8,100
Net Unrealized Appreciation 81,891 360,587 161,991
---------- ----------- ----------
Net Assets $3,872,828 $14,780,457 $3,518,290
========== =========== ==========
Capital Shares Outstanding (Unlimited Number Authorized) 362,003 1,357,576 310,232
NET ASSET VALUE PER SHARE $10.70 $10.89 $11.34
====== ====== ======
See Notes to Financial Statements.
5
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS
- ----------------------------------------------------------------------------------------------------
For the Six Months Ended June 30, 1999 (Unaudited) (Note 1)
<CAPTION>
STRONG STRONG STRONG
CONSERVATIVE MODERATE AGGRESSIVE
PORTFOLIO PORTFOLIO PORTFOLIO
------------ --------- ----------
INCOME:
<S> <C> <C> <C>
Dividends $ 19,464 $ 71,921 $ 9,690
EXPENSES:
Shareholder Servicing Costs (Note 3) 1,380 7,964 2,255
Custodian Fees 2,225 27,139 4,723
Transfer Agency Fees 590 3,254 600
Professional Fees 3,321 3,432 3,483
Reports to Shareholders 3,100 17,278 3,149
Federal and State Registration Fees 18,921 20,635 17,074
Other 655 743 738
------- ------- -------
Total Expenses Before Waivers and Absorptions 30,192 80,445 32,022
Expense Waivers and Absorptions by Advisor (30,192) (80,445) (32,022)
------- ------- -------
Expenses, Net -- -- --
------- ------- -------
NET INVESTMENT INCOME 19,464 71,921 9,690
REALIZED AND UNREALIZED GAIN (LOSS):
Net Realized Gain (Loss) on Investments 1,593 (21,326) 8,101
Net Change in Unrealized Appreciation/
Depreciation on Investments 81,891 360,587 161,991
------ ------- -------
NET GAIN ON INVESTMENTS 83,484 339,261 170,092
------ ------- -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $102,948 $411,182 $179,782
======== ======== ========
See Notes to Financial Statements.
</TABLE>
6
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
STRONG CONSERVATIVE STRONG MODERATE STRONG AGGRESSIVE
PORTFOLIO PORTFOLIO PORTFOLIO
-------------------- -------------------- --------------------
Six Months Ended Six Months Ended Six Months Ended
June 30, 1999 June 30, 1999 June 30,1999
-------------------- -------------------- --------------------
(Unaudited) (Note 1) (Unaudited) (Note 1) (Unaudited) (Note 1)
OPERATIONS:
<S> <C> <C> <C>
Net Investment Income $ 19,464 $ 71,921 $ 9,690
Net Realized Gain (Loss) 1,593 (21,326) 8,101
Net Change in Unrealized Appreciation/Depreciation 81,891 360,587 161,991
Net Increase in Net Assets Resulting from Operations 102,948 411,182 179,782
---------- ----------- ----------
DISTRIBUTIONS FROM NET INVESTMENT INCOME (17,148) -- --
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold 4,061,488 15,376,002 4,441,434
Proceeds from Reinvestment of Distributions 16,662 -- --
Payment for Shares Redeemed (325,122) (1,039,727) (1,135,926)
---------- ----------- ----------
Net Increase in Net Assets from Capital
Share Transactions 3,753,028 14,336,275 3,305,508
---------- ----------- ----------
TOTAL INCREASE IN NET ASSETS 3,838,828 14,747,457 3,485,290
NET ASSETS:
Beginning of Period 34,000 33,000 33,000
---------- ----------- ----------
End of Period $3,872,828 $14,780,457 $3,518,290
========== =========== ==========
TRANSACTIONS IN SHARES OF THE PORTFOLIO:
Sold 388,065 1,453,003 411,306
Issued in Reinvestment of Distributions 1,592 -- --
Redeemed (31,054) (98,727) (104,374)
------- --------- --------
Net Increase in Shares of the Portfolio 358,603 1,354,276 306,932
======= ========= =======
See Notes to Financial Statements.
7
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
June 30, 1999 (Unaudited)
1. ORGANIZATION
The accompanying financial statements represent Strong Life Stage Series,
Inc., an open-end series management company registered under the Investment
Company Act of 1940, as amended. Strong Life Stage Series, Inc. includes
the following diversified investment portfolios (the "Portfolios"), each
with its own investment objectives and policies: Strong Conservative
Portfolio, Strong Moderate Portfolio, and Strong Aggressive Portfolio. Each
Portfolio commenced operations on January 4, 1999.
Each Portfolio invests substantially all of its assets in the following
underlying funds: Strong Growth Fund, Strong Common Stock Fund, Strong
Growth and Income Fund, Strong Blue Chip 100 Fund, Strong Heritage Money
Fund, Strong Advantage Fund, Strong Short-Term Bond Fund, and Strong
Government Securities Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Portfolios in the preparation of their financial statements.
(A) Security Valuation -- Each Portfolio's investment in the underlying
funds is valued at the closing net asset value per share of each fund
determined at the close of the New York Stock Exchange on the day of
valuation.
(B) Federal Income and Excise Taxes and Distributions to Shareholders --
The Portfolios intend to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute substantially all of their taxable income to their
shareholders in a manner which results in no tax cost to the
Portfolios. Therefore, no federal income or excise tax provision is
required.
The character of distributions made during the year from net
investment income or net realized gains for financial statement
purposes may differ from the characterization for federal income tax
purposes due to differences in the recognition of income and expense
items for financial statement and tax purposes. Where appropriate,
reclassifications between net asset accounts are made for such
differences that are permanent in nature.
The Conservative Portfolio generally pays dividends from net
investment income quarterly. The Moderate and Aggressive Portfolios
generally pay dividends from net investment income annually. All
Portfolios distribute any net realized capital gains annually.
(C) Realized Gains and Losses on Investment Transactions -- Investment
security transactions are recorded as of the trade date. Gains or
losses realized on investment transactions are determined by comparing
the identified cost of the security lot sold with the net sales
proceeds.
(D) Use of Estimates -- The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts in these financial statements. Actual results could differ
from those estimates.
(E) Other -- Income and capital gain distributions from the underlying
funds and distributions to Portfolio shareholders are recorded on the
ex-dividend date.
3. RELATED PARTY TRANSACTIONS
Strong Capital Management, Inc. ("Strong"), with whom certain officers and
directors of the Portfolios are affiliated, is the Portfolios' shareholder
servicing agent and transfer and dividend-disbursing agent. Strong also
serves as the underlying funds' investment advisor. The Portfolios do not
pay management fees; however, Strong receives management fees from managing
the underlying funds. Certain expenses will be waived or absorbed by Strong
if the Portfolio's operating expenses exceed 2% of the average daily net
assets of the Portfolio. Strong may also voluntarily waive its
administrative fees and/or absorb certain expenses for a Portfolio. During
the six months ended June 30, 1999, Strong voluntarily waived expenses of
$11,348, $64,516 and $18,285 for the Conservative, Moderate and Aggressive
Portfolios, respectively. Shareholder recordkeeping and related service
fees are based on contractually established rates for each open and closed
shareholder account. Strong is compensated for certain other services
related to costs incurred for reports to shareholders.
Certain information regarding related party transactions, excluding the
effects of waivers and absorptions, for the six months ended June 30, 1999,
is as follows:
Shareholder
Servicing and Other Unaffiliated
Expenses Directors'
Paid to Advisor Fees
------------------- ------------
STRONG CONSERVATIVE PORTFOLIO $1,382 $750
STRONG MODERATE PORTFOLIO 7,971 750
STRONG AGGRESSIVE PORTFOLIO 2,268 750
8
<PAGE>
- --------------------------------------------------------------------------------
4. ORGANIZATION AND PREPAID INITIAL REGISTRATION EXPENSES
Expenses incurred in connection with the organization and the initial
public offering of shares were paid directly by Strong and Strong has
voluntarily agreed to absorb all organizational expenses of the Portfolios.
During the period from October 22, 1998 (incorporation) to June 30, 1999,
organization expenses were $20,570 for the Conservative Portfolio and
$15,867 for each of the Moderate and Aggressive Portfolios. Prepaid initial
registration fees and blue sky expenses were paid by and will be reimbursed
to Strong and are deferred and amortized over the period of benefit not to
exceed twelve months.
5. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of the underlying funds during the six
months ended June 30, 1999, were as follows:
Purchases Sales
----------- ----------
STRONG CONSERVATIVE PORTFOLIO $ 4,067,248 $ 472,786
STRONG MODERATE PORTFOLIO 15,462,705 1,773,474
STRONG AGGRESSIVE PORTFOLIO 3,593,839 343,800
6. INCOME TAX INFORMATION
At June 30, 1999, the investment cost and gross unrealized appreciation and
depreciation on investments for federal income tax purposes were as
follows:
<TABLE>
<CAPTION>
Federal Tax Unrealized Unrealized Net
Cost Appreciation Depreciation Appreciation
----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
STRONG CONSERVATIVE PORTFOLIO $ 3,786,117 $ 86,870 $ 9,170 $ 77,700
STRONG MODERATE PORTFOLIO 14,422,484 405,077 74,324 330,753
STRONG AGGRESSIVE PORTFOLIO 3,366,197 167,489 18,281 149,208
9
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
STRONG CONSERVATIVE PORTFOLIO
- ---------------------------------------------------------------------
Period Ended
------------
June 30,
SELECTED PER-SHARE DATA(a) 1999(b)
- ---------------------------------------------------------------------
Net Asset Value, Beginning of Period $10.00
Income From Investment Operations
Net Investment Income 0.08
Net Realized and Unrealized Gains on Investments 0.69
- ---------------------------------------------------------------------
Total from Investment Operations 0.77
Less Distributions
From Net Investment Income (0.07)
- ---------------------------------------------------------------------
Total Distributions (0.07)
- ---------------------------------------------------------------------
Net Asset Value, End of Period $10.70
=====================================================================
Ratios and Supplemental Data
- ---------------------------------------------------------------------
Total Return +7.7%
Net Assets, End of Period (In Thousands) $3,873
Ratio of Expenses to Average Net Assets without
Waivers and Absorptions 2.0%*
Ratio of Expenses to Average Net Assets 0.0%*
Ratio of Net Investment Income to Average Net Assets 3.4%*
Portfolio Turnover Rate 33.7%
STRONG MODERATE PORTFOLIO
- ---------------------------------------------------------------------
Period Ended
------------
June 30,
SELECTED PER-SHARE DATA(a) 1999(b)
- ---------------------------------------------------------------------
Net Asset Value, Beginning of Period $10.00
Income From Investment Operations
Net Investment Income 0.05
Net Realized and Unrealized Gains on Investments 0.84
- ---------------------------------------------------------------------
Total from Investment Operations 0.89
Less Distributions
From Net Investment Income --
- ---------------------------------------------------------------------
Total Distributions --
- ---------------------------------------------------------------------
Net Asset Value, End of Period $10.89
=====================================================================
Ratios and Supplemental Data
- ---------------------------------------------------------------------
Total Return +8.9%
Net Assets, End of Period (In Thousands) $14,780
Ratio of Expenses to Average Net Assets without
Waivers and Absorptions 2.0%*
Ratio of Expenses to Average Net Assets 0.0%*
Ratio of Net Investment Income to Average Net Assets 2.2%*
Portfolio Turnover Rate 26.9%
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Portfolio
outstanding for the entire period.
(b) For the period from December 31, 1998 (inception) to June 30, 1999
(unaudited).
See Notes to Financial Statements.
10
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
STRONG AGGRESSIVE PORTFOLIO
- ---------------------------------------------------------------------
Period Ended
------------
June 30,
SELECTED PER-SHARE DATA(a) 1999(b)
- ---------------------------------------------------------------------
Net Asset Value, Beginning of Period $10.00
Income From Investment Operations
Net Investment Income 0.03
Net Realized and Unrealized Gains on Investments 1.31
- ---------------------------------------------------------------------
Total from Investment Operations 1.34
Less Distributions
From Net Investment Income --
- ---------------------------------------------------------------------
Total Distributions --
- ---------------------------------------------------------------------
Net Asset Value, End of Period $11.34
=====================================================================
Ratios and Supplemental Data
- ---------------------------------------------------------------------
Total Return +13.4%
Net Assets, End of Period (In Thousands) $3,518
Ratio of Expenses to Average Net Assets without
Waivers and Absorptions 2.0%*
Ratio of Expenses to Average Net Assets 0.0%*
Ratio of Net Investment Income to Average Net Assets 1.0%*
Portfolio Turnover Rate 17.5%
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Portfolio
outstanding for the entire period.
(b) For the period from December 31, 1998 (inception) to June 30, 1999
(unaudited).
See Notes to Financial Statements
11
<PAGE>
NOTES
- --------------------------------------------------------------------------------
12
<PAGE>
DIRECTORS
Richard S. Strong
Willie D. Davis
Stanley Kritzik
Marvin E. Nevins
William F. Vogt
OFFICERS
Richard S. Strong, Chairman of the Board
Mary F. Hoppa, Vice President
John S. Weitzer, Vice President
Stephen J. Shenkenberg, Vice President and Secretary
John W. Widmer, Treasurer
DISTRIBUTOR
Strong Investments, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
CUSTODIAN
Firstar Bank Milwaukee, N.A.
P.O. Box 701, Milwaukee, Wisconsin 53201
TRANSFER AGENT AND DIVIDEND-DISBURSING AGENT
Strong Capital Management, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers L.L.P.
100 East Wisconsin Avenue, Milwaukee, Wisconsin 53202
LEGAL COUNSEL
Godfrey & Kahn, S.C.
780 North Water Street, Milwaukee, Wisconsin 53202
<PAGE>
For a prospectus containing more complete information, including management fees
and expenses, please call 1-800-368-1030. Please read it carefully before
investing or sending money. This report does not constitute an offer for the
sale of securities. Strong Funds are offered for sale by prospectus only.
[PICTURE OF TELEPHONE]
To order a free prospectus kit,
CALL 1-800-368-1030.
To learn more about our funds,
discuss an existing account,
or conduct a transaction,
CALL 1-800-368-3863.
--------------------
If you are a
Financial Professional,
CALL 1-800-368-1683
[PICTURE OF STRONG WEB SITE ON COMPUTER]
Strong On-line
www.strongfunds.com
[STRONG LOGO]
STRONG FUNDS
P.O. Box 2936 o Milwaukee, Wisconsin 53201
Strong Investments, Inc. 12424H99 SLIF
<PAGE>
