<PAGE>
[LOGO OF STRONG]
[PICTURE]
Semi-annual report
The Strong
L I F E S T A G E
Series
The Strong Conservative Portfolio
The Strong Moderate Portfolio
The Strong Aggressive Portfolio
Semi-Annual Report . June 30, 2000
<PAGE>
Letter from the Chairman
Dear Strong Investor,
The United States' economic miracle continues to set records for
longevity. Today, we enjoy a near-perfect economy. How in the world did we get
here?
In the days of our grandparents and great-grandparents, the railroad helped
drive the Industrial Revolution. Nearly every aspect of the Industrial
Revolution directly impacted and improved people's lives. Today, the
technological revolution is similarly impacting our lives. We feel its presence
every time we dial a cell phone, pull out a PalmPilot, boot up a computer, and
punch "play" on the CD player in the dashboard of our computer-programmed cars.
Technology is our constant companion.
Aside from those tangible ways in which we employ technology each and every day,
ongoing technological developments affect us in another, less obvious way. The
technology revolution is enhancing worker productivity, enabling the economy to
grow faster than ever before without the drag of inflation. This allows real
wages to rise faster than in previous periods of expansion, raising nearly
everyone's standard of living.
The phenomenal economic growth and wealth creation that we have experienced has
powered the financial markets to ever-higher levels in recent years. As long as
this favorable economic environment prevails -- and assuming that there isn't a
negative policy change or an economic "accident" to derail it -- our economy
should continue to expand. Hopefully, the financial markets will continue to
reflect that.
Despite the good times, we should never forget that the financial markets are in
control and that they are a discounting mechanism, continually peering into the
future. In fact, many experienced investors believe that certain sectors of the
financial markets are currently priced to perfection and any little hiccup could
cause a significant correction.
The U.S. Federal Reserve Board has increased interest rates six times during the
last 18 months in an attempt to slow the economy. Many central banks around the
world have been making a concerted effort to slow their economies. If one or
more of these economies should slow, it may be reflected in the tone of our
economy and financial markets as well. If that happens, 2000 could be the first
time in many years that investors earn a negative return on their stock
investments. It will be a new -- and unpleasant -- experience for investors who
know only the unbridled bull markets of the 1990s.
Financial markets are cyclical. A market correction, though painful, is as
natural as breathing. Financial volatility can significantly derail an
investment program, especially if that program is not carefully planned. At
Strong, we pride ourselves on helping our investors invest wisely and with
purpose. We advise you to establish a clear set of goals, a plan to reach them,
and a program of constant monitoring to make certain you are heading in the
right direction.
/s/ Dick
<PAGE>
The Strong
Life Stage Series
________
SEMI-ANNUAL REPORT . JUNE 30, 2000
Table of Contents
<TABLE>
<S> <C>
Investment Reviews
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......................................................................................... 9
Financial Highlights...................................................................................................... 11
</TABLE>
<PAGE>
THE STRONG LIFE STAGE PORTFOLIOS
--------------------------------
Portfolio
highlights
. For the six months ended June 30, 2000, the Conservative Portfolio returned
3.48%, the Moderate Portfolio returned 4.39%, and the Aggressive Portfolio
returned 4.59%./1/
. The Strong Growth Fund was the strongest contributor to the portfolios'
outperformance over the first half of the year.
. The Strong Blue Chip 100 Fund was another particularly strong performer.
Like the Strong Growth Fund, this fund benefited from favorable stock
selection in the technology sector. In addition, the Strong Blue Chip
Fund's underweighting in troubled cyclical sectors protected performance.
--------------------------------------------------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS/1/
As of 6-30-00
Conservative Portfolio
1-year 15.53%
Since Inception 15.71%
(on 12-31-98)
Moderate Portfolio
1-year 21.40%
Since Inception 20.46%
(on 12-31-98)
Aggressive Portfolio
1-year 27.06%
Since Inception 27.57%
(on 12-31-98)
Investment Perspectives
--------------------------------------------------------------------------------
All three portfolios in the Strong Life Stage Series outpaced their benchmark
indexes for the six months ended June 30, 2000. All four of the equity funds
that are components of the portfolios outperformed the benchmark S&P 500 Stock
Index over the six-month period.*
Driving the Strong Life Stage portfolios' outperformance was the Strong Growth
Fund. Its manager's advantageous stock selections in the technology sector were
by far the leading factor in its performance. The Strong Growth Fund also was
protected by its below-market exposure to poorly performing sectors, including
cyclicals and telecommunications. For similar reasons, the Strong Blue Chip 100
Fund was also a healthy contributor to performance.
The Federal Reserve's continued tightening of monetary policy made conditions
difficult in many sectors of the stock market, and of course had considerable
impact in the bond markets, as well. The U.S. Treasury's plans to buy back long
Treasury debt helped support prices in the Treasury sector, but corporate and
mortgage-backed securities gave up ground.
In this environment, the Strong Government Securities Fund was the best
performer among the fixed-income components. The Strong Advantage Fund also
exceeded the benchmark's return, thanks to its focus on ultra-short-maturity
bonds. For the Short-Term Bond Fund, on the other hand, an emphasis on the
corporate and mortgage-backed sectors caused the Fund to underperform its
benchmark index slightly.
Looking ahead, we believe the Federal Reserve will guide the near-term direction
of financial markets. Stocks are heavily
___________________
Looking ahead, we
believe the Federal
Reserve will guide the
near-term direction
of financial markets.
___________________
--------------------------------------------------------------------------------
/1/ Average annual total return and total return measure change in the value of
an investment in the Fund, assuming reinvestment of all dividends and
capital gains. Average annual total return reflects annualized change,
while total return reflects aggregate change and is not annualized.
2
<PAGE>
influenced by the monetary environment, so their prices will continue to react
to economic reports and their implications for future Fed policy moves. Recent
evidence of moderation in economic growth suggests that the Fed's interest-rate
hikes are having the desired effect, raising the possibility that an end to the
monetary tightening cycle is in sight. If this trend continues, conditions in
the bond markets may improve, as well.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 12-31-98 to 6-30-00
[GRAPH]
<TABLE>
<CAPTION>
The Strong Conservative Portfolio The Strong Moderate Portfolio The Strong Aggressive Portfolio S&P 500 Stock Index*
<S> <C> <C> <C> <C>
Dec 98 $10,000 $10,000 $10,000 $10,000
Mar 99 $10,410 $10,540 $10,720 $10,498
Jun 99 $10,773 $10,890 $11,340 $11,238
Sep 99 $10,659 $10,660 $11,020 $10,536
Dec 99 $12,027 $12,664 $13,777 $12,104
Mar 00 $12,656 $13,639 $15,114 $12,382
Jun 00 $12,446 $13,220 $14,409 $12,053
</TABLE>
This graph, prepared in accordance with SEC regulations, compares a $10,000 in
each portfolio, made at its inception, with the performance of the Standard &
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.
Your Portfolio's
approach
The Strong Conservative Portfolio seeks total return by investing primarily for
income and secondarily for capital growth. The Strong Moderate Portfolio seeks
total return by investing primarily for capital growth and secondarily for
income. The Strong Aggressive Portfolio seeks capital growth. The Portfolios
invest substantially all of their assets in a group of Strong Funds. The funds
have different allocations of stocks, bonds, and cash, reflecting varying
degrees of potential investment risk and reward. These asset allocations provide
you with three diversified, distinct options that can meet a wide variety of
investment needs.
--------------------------------------------------------------------------------
Market highlights
. The stock market has struggled to make any headway during the first half of
2000.
. The Federal Reserve's interest-rate hikes continued to create a strong
headwind for both stocks and fixed-income investments.
. The S&P 500 Index posted a narrow loss of 0.42% for the six-month period.
. The first half of the year saw an unnerving 37% plunge in the value of the
Nasdaq Composite Index, along with a subsequent partial recovery.
--------------------------------------------------------------------------------
* 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.
3
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
STRONG CONSERVATIVE PORTFOLIO
Shares or
Principal Value
Amount (Note 2)
--------------------------------------------------------------------------------
Investment Company Securities 94.6%
Strong Advantage Fund, Inc. - Investor Class 307,198 $ 3,032,047
Strong Blue Chip 100 Fund - Investor Class 66,633 1,505,898
Strong Common Stock Fund, Inc. 57,946 1,467,185
Strong Government Securities Fund, Inc. -
Investor Class 74,680 757,999
Strong Growth Fund - Investor Class 39,370 1,522,034
Strong Growth and Income Fund - Investor Class 51,500 1,482,160
Strong Short-Term Bond Fund, Inc. - Investor Class 488,022 4,543,485
--------------------------------------------------------------------------------
Total Investment Company Securities (Cost $13,242,990) 14,310,808
--------------------------------------------------------------------------------
Short-Term Investments (a) 5.0%
Commercial Paper
Interest Bearing, Due Upon Demand
Sara Lee Corporation, 6.27% $269,100 269,100
Wisconsin Electric Power Company, 6.31% 484,600 484,600
--------------------------------------------------------------------------------
Total Short-Term Investments (Cost $753,700) 753,700
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total Investments in Securities (Cost $13,996,690) 99.6% 15,064,508
Other Assets and Liabilities, Net 0.4% 56,721
--------------------------------------------------------------------------------
Net Assets 100.0% $15,121,229
================================================================================
STRONG MODERATE PORTFOLIO
Shares or
Principal Value
Amount (Note 2)
--------------------------------------------------------------------------------
Investment Company Securities 94.7%
Strong Advantage Fund, Inc. - Investor Class 465,318 $ 4,592,684
Strong Blue Chip 100 Fund - Investor Class 302,790 6,843,048
Strong Common Stock Fund, Inc. 263,311 6,667,037
Strong Government Securities Fund, Inc. -
Investor Class 452,478 4,592,649
Strong Growth Fund - Investor Class 178,899 6,916,218
Strong Growth and Income Fund - Investor Class 234,028 6,735,323
Strong Short-Term Bond Fund, Inc. - Investor Class 739,219 6,882,127
--------------------------------------------------------------------------------
Total Investment Company Securities (Cost $39,382,432) 43,229,086
--------------------------------------------------------------------------------
Short-Term Investments (a) 5.1%
Commercial Paper
Interest Bearing, Due Upon Demand
Sara Lee Corporation, 6.27% $1,195,300 1,195,300
Wisconsin Electric Power Company, 6.31% 1,142,500 1,142,500
--------------------------------------------------------------------------------
Total Short-Term Investments (Cost $2,337,800) 2,337,800
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total Investments in Securities (Cost $41,720,232) 99.8% 45,566,886
Other Assets and Liabilities, Net 0.2% 108,599
--------------------------------------------------------------------------------
Net Assets 100.0% $45,675,485
================================================================================
STRONG AGGRESSIVE PORTFOLIO
Shares or
Principal Value
Amount (Note 2)
--------------------------------------------------------------------------------
Investment Company Securities 94.5%
Strong Blue Chip 100 Fund - Investor Class 190,075 $ 4,295,690
Strong Common Stock Fund, Inc. 165,318 4,185,851
Strong Government Securities Fund, Inc. -
Investor Class 213,056 2,162,522
Strong Growth Fund - Investor Class 112,294 4,341,269
Strong Growth and Income Fund - Investor Class 146,924 4,228,467
Strong Short-Term Bond Fund, Inc. - Investor Class 116,024 1,080,187
--------------------------------------------------------------------------------
Total Investment Company Securities (Cost $18,716,024) 20,293,986
--------------------------------------------------------------------------------
Short-Term Investments (a) 5.4%
Commercial Paper
Interest Bearing, Due Upon Demand
Sara Lee Corporation, 6.27% $324,500 324,500
Wisconsin Electric Power Company, 6.31% 838,000 838,000
--------------------------------------------------------------------------------
Total Short-Term Investments (Cost $1,162,500) 1,162,500
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total Investments in Securities (Cost $19,878,524) 99.9% 21,456,486
Other Assets and Liabilities, Net 0.1% 26,035
--------------------------------------------------------------------------------
Net Assets 100.0% $21,482,521
================================================================================
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>
STATEMENTS OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Strong Strong Strong
Conservative Moderate Aggressive
Portfolio Portfolio Portfolio
-------------- ------------- --------------
<S> <C> <C> <C>
Assets:
Investments in Securities, at Value
(Cost of $13,996,690, $41,720,232 and $19,878,524, respectively) $15,064,508 $45,566,886 $21,456,486
Dividends and Interest Receivable 56,312 107,919 25,788
Other Assets 409 680 247
----------- ----------- -----------
Total Assets 15,121,229 45,675,485 21,482,521
Liabilities -- -- --
----------- ----------- -----------
Net Assets $15,121,229 $45,675,485 $21,482,521
=========== =========== ===========
Net Assets Consist of:
Capital Stock (par value and paid-in capital) $13,880,363 $41,166,104 $19,874,330
Undistributed Net Investment Income 18,427 449,863 80,582
Accumulated Net Realized Gain (Loss) 154,621 212,864 (50,353)
Net Unrealized Appreciation 1,067,818 3,846,654 1,577,962
----------- ----------- -----------
Net Assets $15,121,229 $45,675,485 $21,482,521
=========== =========== ===========
Capital Shares Outstanding (Unlimited Number Authorized) 1,300,982 3,623,350 1,570,663
Net Asset Value Per Share $ 11.62 $ 12.61 $ 13.68
=========== ============ ============
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------
For the Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Strong Strong Strong
Conservative Moderate Aggressive
Portfolio Portfolio Portfolio
------------ ----------- -----------
<S> <C> <C> <C>
Income:
Net Investment Income Received from Underlying Funds $245,001 $ 437,211 $ 73,836
Interest 18,824 58,297 25,022
-------- ---------- --------
Total Income 263,825 495,508 98,858
Expenses:
Administrative Fees (Note 3) 17,202 49,008 19,427
Custodian Fees 58 113 37
Professional Fees 3,414 3,464 3,458
Reports to Shareholders 2,133 7,547 16,031
Federal and State Registration Fees 9,992 14,518 12,980
Other 1,760 1,568 1,406
-------- ---------- --------
Total Expenses Before Waivers and Absorptions 34,559 76,218 53,339
Voluntary Expense Waivers and Absorptions by Strong (17,357) (27,210) (33,906)
-------- ---------- --------
Expenses, Net 17,202 49,008 19,433
-------- ---------- --------
Net Investment Income 246,623 446,500 79,425
Realized and Unrealized Gain (Loss):
Net Realized Gain (Loss) on:
Sales of Underlying Funds 174,501 163,254 (34,577)
Distributions of Capital Gains from Underlying Funds 85 250 111
-------- ---------- --------
Net Realized Gain (Loss) 174,586 163,504 (34,466)
Net Change in Unrealized Appreciation/Depreciation on Investments 95,728 939,348 318,261
-------- ---------- --------
Net Gain on Investments 270,314 1,102,852 283,795
-------- ---------- --------
Net Increase in Net Assets Resulting from Operations $516,937 $1,549,352 $363,220
======== ========== ========
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Strong Conservative Portfolio Strong Moderate Portfolio
----------------------------------- -----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 2000 Dec. 31, 1999 June 30, 2000 Dec. 31, 1999
----------------- ------------- ----------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Operations:
Net Investment Income $ 246,623 $ 171,511 $ 446,500 $ 339,251
Net Realized Gain 174,586 338,096 163,504 935,883
Net Change in Unrealized Appreciation/Depreciation 95,728 972,090 939,348 2,907,306
------------ ------------ ------------ ------------
Net Increase in Net Assets Resulting from Operations 516,937 1,481,697 1,549,352 4,182,440
Distributions:
From Net Investment Income (231,197) (168,510) -- (335,888)
From Net Realized Gains (55,005) (303,056) -- (886,523)
------------ ------------ ------------ ------------
Total Distributions (286,202) (471,566) -- (1,222,411)
Capital Share Transactions:
Proceeds from Shares Sold 6,332,783 14,668,417 24,054,136 27,888,163
Proceeds from Reinvestment of Distributions 282,773 468,737 -- 1,218,962
Payment for Shares Redeemed (5,072,327) (2,834,020) (6,533,530) (5,494,627)
------------ ------------ ------------ ------------
Net Increase in Net Assets from Capital
Share Transactions 1,543,229 12,303,134 17,520,606 23,612,498
------------ ------------ ------------ ------------
Total Increase in Net Assets 1,773,964 13,313,265 19,069,958 26,572,527
Net Assets:
Beginning of Period 13,347,265 34,000 26,605,527 33,000
------------ ------------ ------------ ------------
End of Period $ 15,121,229 $ 13,347,265 $ 45,675,485 $ 26,605,527
============ ============ ============ ============
Transactions in Shares of the Portfolio:
Sold 548,444 1,380,800 1,944,354 2,599,260
Issued in Reinvestment of Distributions 23,981 41,463 -- 101,327
Redeemed (435,971) (261,135) (522,612) (502,279)
------------ ------------ ------------ ------------
Net Increase in Shares of the Portfolio 136,454 1,161,128 1,421,742 2,198,308
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Strong Aggressive Portfolio
------------------------------------
Six Months Ended Year Ended
June 30, 2000 Dec. 31, 1999
----------------- -------------
(Unaudited)
<S> <C> <C>
Operations:
Net Investment Income $ 79,425 $ 45,341
Net Realized Gain (Loss) (34,466) 391,635
Net Change in Unrealized Appreciation/Depreciation 318,261 1,259,701
------------ ------------
Net Increase in Net Assets Resulting from Operations 363,220 1,696,677
Distributions:
From Net Investment Income -- (44,184)
From Net Realized Gains -- (407,522)
------------ ------------
Total Distributions -- (451,706)
Capital Share Transactions:
Proceeds from Shares Sold 15,133,144 9,597,123
Proceeds from Reinvestment of Distributions -- 448,740
Payment for Shares Redeemed (3,052,015) (2,285,662)
------------ ------------
Net Increase in Net Assets from Capital Share Transactions 12,081,129 7,760,201
------------ ------------
Total Increase in Net Assets 12,444,349 9,005,172
Net Assets:
Beginning of Period 9,038,172 33,000
------------ ------------
End of Period $ 21,482,521 $ 9,038,172
============ ============
Transactions in Shares of the Portfolio:
Sold 1,107,868 854,547
Issued in Reinvestment of Distributions -- 34,492
Redeemed (227,991) (201,553)
------------ ------------
Net Increase in Shares of the Portfolio 879,877 687,486
============ ============
</TABLE>
see Notes to Financial Statements.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
June 30,2000 (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 invests substantially all its assets in a combination of 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
which is 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 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 substantially all 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.Distributions received from the underlying funds
retain their tax characterization determined at the underlying fund
level.
3. Related Party Transactions
Strong Capital Management, Inc. ("Strong"), with whom certain officers and
directors of the Funds 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. Administrative Fees, which are established by the
prospectus, are based on an annualized rate of 0.25% of the average daily
net assets of the Portfolios. 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 or
absorb certain expenses for a Portfolio. Shareholder recordkeeping and
related service fees are based on contractually established rates for each
open and closed shareholder account. Strong also allocates to each
Portfolio certain charges or credits resulting from transfer agency banking
activities based on each Portfolio's level of subscription and redemption
activity. Charges allocated to the Portfolio by Strong are included in
Other Expenses in the Portfolio's Statement of Operations. Credits
allocated by Strong serve to reduce the shareholder servicing expenses
incurred by the Portfolios and are reported as Fees Paid Indirectly by
Strong in the Portfolio's Statement of Operations. Strong is also
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, 2000,
is as follows:
<TABLE>
<CAPTION>
Shareholder
Receivable from Servicing and Other Unaffiliated
Advisor at Expenses Transfer Agency Directors'
June 30, 2000 Paid to Strong Banking Charges Fees
--------------- ------------------- --------------- ------------
<S> <C> <C> <C> <C>
Strong Conservative Portfolio $ 146 $17,220 $ 1,194 $ 837
Strong Moderate Portfolio 123 49,059 818 1,022
Strong Aggressive Portfolio 3 19,533 893 776
</TABLE>
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
June 30,2000 (Unaudited)
4. Investment Transactions
The aggregate purchases and sales of the underlying funds during the six
months ended June 30, 2000, were as follows:
Purchases Sales
----------- -----------
Strong Conservative Portfolio $ 5,075,972 $ 3,381,603
Strong Moderate Portfolio 22,459,641 4,704,715
Strong Aggressive Portfolio 13,382,361 1,520,947
5. Income Tax Information
At June 30, 2000, the investment cost, 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 $14,059,547 $ 1,052,101 $ 47,140 $ 1,004,961
Strong Moderate Portfolio 41,894,208 3,890,228 217,550 3,672,678
Strong Aggressive Portfolio 19,971,587 1,699,458 214,559 1,484,899
</TABLE>
10
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
STRONG CONSERVATIVE PORTFOLIO
-------------------------------------------------------------
<TABLE>
<CAPTION>
Period Ended
--------------------------
June 30, Dec. 31,
Selected Per-Share Data/(a)/ 2000/(b)/ 1999
---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 11.46 $ 10.00
Income From Investment Operations:
Net Investment Income 0.20 0.28
Net Realized and Unrealized Gains on Investments 0.20 1.72
---------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.40 2.00
Less Distributions:
From Net Investment Income (0.19) (0.19)
From Net Realized Gains (0.05) (0.35)
---------------------------------------------------------------------------------------------------------
Total Distributions (0.24) (0.54)
---------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 11.62 $ 11.46
=========================================================================================================
Ratios and Supplemental Data
---------------------------------------------------------------------------------------------------------
Total Return +3.5% +20.3%
Net Assets, End of Period (In Thousands) $ 15,121 $ 13,347
Ratio of Expenses to Average Net Assets Without Waivers and Absorptions 0.5%* 1.5%
Ratio of Expenses to Average Net Assets 0.2%* 0.0%
Ratio of Net Investment Income to Average Net Assets 3.6%* 3.7%
Portfolio Turnover Rate 25.8% 53.7%
</TABLE>
STRONG MODERATE PORTFOLIO
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Period Ended
--------------------------
June 30, Dec. 31,
Selected Per-Share Data/(a)/ 2000/(b)/ 1999
---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value,Beginning of Period $ 12.08 $ 10.00
Income From Investment Operations:
Net Investment Income 0.12 0.17
Net Realized and Unrealized Gains on Investments 0.41 2.49
---------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.53 2.66
Less Distributions:
From Net Investment Income -- (0.16)
From Net Realized Gains -- (0.42)
---------------------------------------------------------------------------------------------------------
Total Distributions -- (0.58)
---------------------------------------------------------------------------------------------------------
Net Asset Value,End of Period $ 12.61 $ 12.08
=========================================================================================================
Ratios and Supplemental Data
---------------------------------------------------------------------------------------------------------
Total Return +4.4% +26.7%
Net Assets,End of Period (In Thousands) $ 45,675 $ 26,606
Ratio of Expenses to Average Net Assets Without Waivers and Absorptions 0.4%* 0.6%
Ratio of Expenses to Average Net Assets 0.2%* 0.0%
Ratio of Net Investment Income to Average Net Assets 2.3%* 2.3%
Portfolio Turnover Rate 13.0% 35.0%
</TABLE>
* 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 six months ended June 30, 2000 (unaudited).
See Notes to Financial Statements
11
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
--------------------------------------------------------------------------------
STRONG AGGRESSIVE PORTFOLIO
<TABLE>
<CAPTION>
Period Ended
--------------------------
June 30, Dec. 31,
Selected Per-Share Data/(a)/ 2000/(b)/ 1999
---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 13.08 $ 10.00
Income From Investment Operations:
Net Investment Income 0.05 0.09
Net Realized and Unrealized Gains on Investments 0.55 3.69
---------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.60 3.78
Less Distributions:
From Net Investment Income -- (0.07)
From Net Realized Gains -- (0.63)
---------------------------------------------------------------------------------------------------------
Total Distributions -- (0.70)
---------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 13.68 $ 13.08
=========================================================================================================
Ratios and Supplemental Data
---------------------------------------------------------------------------------------------------------
Total Return +4.6% +37.8%
Net Assets, End of Period (In Thousands) $ 21,483 $ 9,038
Ratio of Expenses to Average Net Assets Without Waivers and Absorptions 0.7%* 1.6%
Ratio of Expenses to Average Net Assets 0.2%* 0.0%
Ratio of Net Investment Income to Average Net Assets 1.0%* 1.1%
Portfolio Turnover Rate 10.6% 18.5%
</TABLE>
* 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 six months ended June 30, 2000 (unaudited).
See Notes to Financial Statements
12
<PAGE>
Directors
Richard S.Strong
Willie D.Davis
Stanley Kritzik
Neal Malicky
Marvin E.Nevins
William F.Vogt
Officers
Richard S. Strong, Chairman of the Board
Stephen J. Shenkenberg, Vice President and Secretary
Elizabeth N. Cohernour, Vice President
Cathleen A. Ebacher, Vice President
Dennis A.Wallestad, Vice President
Thomas M. Zoeller, Vice President
John W.Widmer, Treasurer
Rhonda K. Haight, Assistant Treasurer
Distributor
Strong Investments,Inc.
P.O.Box 2936,Milwaukee,Wisconsin 53201
Custodian
Firstar Bank,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 LLP
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. To
reduce the volume of mail you receive, only one copy of financial reports,
prospectuses, and other regulatory materials is mailed to your household. You
can call us at 1-800-368-1030, or write to us at the address listed below, to
request (1) additional copies free of charge, or (2) that we discontinue our
practice of householding regulatory materials. Strong Investments, Inc. RT5371-
0700
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
Visit our web site at
www.eStrong.com
[LOGO] STRONG INVESTMENTS
P.O. Box 2936
Milwaukee, Wisconsin 53201
