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SEMI-ANNUAL REPORT
THE STRONG
GROWTH AND INCOME
FUNDS
The Strong American Utilities Fund
The Strong Asset Allocation Fund
The Strong Equity Income Fund
The Strong Limited Resources Fund
The Strong Total Return Fund
The Strong Blue Chip 100 Fund
The Strong Growth and Income Fund
SEMI-ANNUAL REPORT - APRIL 30, 2000
<PAGE>
LETTER FROM THE CHAIRMAN
Dear Strong Investor,
There is an old Wall Street saying that goes something like this: "Don't fight
the Fed." This is a basic rule you ignore at your own peril.
Since June of 1999, the Federal Reserve Board has raised short-term interest
rates five times with one goal in mind: to slow the economy. This past winter
and spring, the U.S. financial markets began to react to the Fed's actions
swiftly and dramatically. The speed and violence of the downdraft that followed
was enough to scare even the most seasoned investors.
What happened to the financial markets was capitalism doing what it does
best--separating the weak from the strong. Capitalism takes no prisoners. It has
an uncanny ability to seek out the excesses in the system and to separate
quality companies from deficient ones. To my way of thinking, that only serves
to underscore the importance of quality, balance, and diversification in a
portfolio. This spring's financial damage rather dramatically exposed the
excesses in technology and Internet investments and burst the bubble that had
formed around these sectors of the market.
Meanwhile, we are in the tenth year of an unprecedented economic expansion. A
large part of the credit for our good fortune belongs to Alan Greenspan's
shaping of monetary policy and the Fed's rather remarkable achievements in
managing interest rates. Under the current circumstances, the question most
investors need to ask is how to continue participating in the opportunities
available without exposing themselves to too much risk.
When I was a rookie in the investment business, an old-timer told me that too
many people treat investing as entertainment. Investing is not a game. It is a
vital component of the capitalist system. If you want to make your way through
the system without losing your shirt, you need to pick a specific financial
destination and get a reliable investment road map that will take you there.
A successful investment program involves finding companies with proven
management along with real products and services. In other words, invest in
people and companies who you are confident will do exactly what they say they
will do. Identifying them requires research, patience, and experience.
Investing is not a game of hot potato where you buy a stock, pray that the price
goes up, and then pass it to some poor soul when the price is on the way down.
That's not serious investing. That's more like a guarantee that someone--either
you or the next guy--is going to get burned.
/s/ Dick
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<PAGE>
THE STRONG
GROWTH AND INCOME
FUNDS
------
SEMI-ANNUAL REPORT - APRIL 30, 2000
TABLE OF CONTENTS
<TABLE>
<S> <C>
INVESTMENT REVIEWS
The Strong American Utilities Fund ...................................2
The Strong Asset Allocation Fund .....................................4
The Strong Equity Income Fund ........................................6
The Strong Limited Resources Fund ....................................8
The Strong Total Return Fund ........................................10
The Strong Blue Chip 100 Fund .......................................12
The Strong Growth and Income Fund ...................................14
FINANCIAL INFORMATION
Schedules of Investments in Securities
The Strong American Utilities Fund ..............................16
The Strong Asset Allocation Fund ................................16
The Strong Equity Income Fund ...................................19
The Strong Limited Resources Fund ...............................21
The Strong Total Return Fund ....................................22
The Strong Blue Chip 100 Fund ...................................24
The Strong Growth and Income Fund ...............................25
Statements of Assets and Liabilities ................................28
Statements of Operations ............................................31
Statements of Changes in Net Assets .................................33
Notes to Financial Statements .......................................36
FINANCIAL HIGHLIGHTS .....................................................43
</TABLE>
<PAGE>
THE STRONG AMERICAN UTILITIES FUND
----------------------------------
PERSPECTIVES
FROM THE MANAGER
/s/ William H. Reaves
William H. Reaves
Portfolio Manager
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The six months ended April 30 were challenging in view of the volatility
experienced in the market. Until mid-March, technology stocks boomed, driving
the S&P 500 Index higher, while the Fund's electric and telephone utilities
stocks experienced declines. Gas and energy stocks produced gains. We sold
telephone stocks--some of SBC Communications, in particular--on strength and
used the proceeds to add to our holdings of gas utilities. Price declines in the
electric sector brought higher-quality electrics into affordable ranges,
providing us with the opportunity to upgrade the portfolio.
Telephone and electrics experienced a second bout of selling pressure in early
March but recovered quickly in April, as the Nasdaq declined by as much as 34%
during the last two months of this period and the Dow Jones and S&P 500 Indexes
also posted declines. Despite periodic erosions of share prices, there was a
substantial buildup in value for a number of electric utilities.
The Fund's allocation to gas stocks--the best-performing sector of the
portfolio--increased by one-third. The Fund focuses on companies that complement
their high-quality, regulated assets with unregulated activities to enhance
returns.
We are maintaining our 24% portfolio weighting in energy, given that sector's
prospects for exceptional gains in earnings. Our analysis suggests that in the
year 2000, oil prices are likely to settle at a level that is
-----------------------------------
... A LITTLE FEAR IN THE STOCK MARKET DOES ATTRACT INVESTOR ATTENTION TO THE
UTILITIES GROUP.
-----------------------------------
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[SIDENOTE]
FUND
HIGHLIGHTS
- For the six months ended April 30, 2000, the Strong American Utilities Fund
returned 3.36%, compared with 7.20% for the S&P 500 Stock Index.(1), *
- Gas utilities with strategies that employ unregulated activities in
conjunction with regulated assets produced significant investment returns.
- Robust oil and gas prices, together with ongoing cost-cutting, resulted in
improved earnings for the Fund's energy holdings.
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<TABLE>
<S> <C>
YIELD SUMMARY(2)
AS OF 4-28-00
30-day annualized
yield 2.01%
</TABLE>
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<TABLE>
<S> <C>
AVERAGE ANNUAL
TOTAL RETURNS(1)
AS OF 4-30-00
1-year 5.06%
3-year 18.04%
5-year 17.50%
Since Inception 14.32%
(on 7-1-93)
</TABLE>
Recent stock market fluctuations emphasize that equity funds can be volatile
investments. They should only be considered for long-term investment goals.
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TOP FIVE INDUSTRIES
BASED ON NET ASSETS AS OF 4-30-00
<TABLE>
<CAPTION>
INDUSTRY % OF NET ASSETS
--------------------------------------
<S> <C>
Electric Utility 29.9%
Energy Related 22.7%
Gas Utility 21.5%
Telecommunication 20.3%
Other Utility 0.4%
</TABLE>
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
(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) Yields are historical and do not represent future yields, which will
fluctuate.
The American Utilities Fund is a non-diversified sector fund. As such,
it may concentrate its assets in fewer individual holdings than a
diversified fund may, and it may concentrate its investments in the
utilities sector. Therefore, the fund is more exposed to individual
stock volatility and negative market pressures in the utilities sector.
2
<PAGE>
higher than it has been in the past five years, and that is about double the low
point reached in 1998 and 1999. Cost structures in this area have been improved,
restructuring is continuing, and companies' returns from chemical, refining, and
marketing are expected to improve. Atlantic Richfield, which began the fiscal
year among the Fund's five largest holdings, merged with BP Amoco--placing the
merged companies among the Fund's top holdings.
It is our belief that the market will come to recognize well-selected electric
and gas utilities as superior investments. It bears repeating that a little fear
in the stock market does attract investor attention to the utilities group.
Thank you for your continued confidence in the Strong American Utilities Fund.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
FROM 7-1-93 TO 4-30-00
<TABLE>
<CAPTION>
The Strong American S&P 500 Lipper Utility
Utilities Fund Stock Index Funds Index
<S> <C> <C> <C>
Jun 93 $10,000 $10,000 $10,000
Dec 93 $10,450 $10,496 $10,167
Dec 94 $10,178 $10,635 $9,223
Dec 95 $13,939 $14,631 $11,724
Dec 96 $15,106 $17,991 $12,817
Dec 97 $19,270 $23,993 $16,113
Dec 98 $23,190 $30,849 $19,077
Dec 99 $23,326 $37,341 $21,850
Apr 00 $24,962 $37,049 $22,467
</TABLE>
This graph, prepared in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of the
Standard & Poor's 500 Stock Index ("S&P 500") and the Lipper Utility Funds
Index. 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.
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[SIDENOTE]
YOUR FUND'S
APPROACH
THE STRONG AMERICAN UTILITIES FUND SEEKS TOTAL RETURN BY INVESTING FOR BOTH
INCOME AND CAPITAL GROWTH. THE FUND INVESTS PRIMARILY IN THE STOCKS OF U.S.
PUBLIC UTILITY COMPANIES. THESE INCLUDE COMPANIES THAT PROVIDE PRODUCTS AND
SERVICES RELATED TO ELECTRIC POWER, COMMUNICATIONS, GAS, AND WATER. THE STOCKS
OF PUBLIC UTILITY COMPANIES GENERALLY PAY CONSISTENT AND ABOVE-AVERAGE
DIVIDENDS. THE FUND ALSO INVESTS IN ENERGY STOCKS. TO A LIMITED EXTENT, THE FUND
MAY ALSO INVEST IN FOREIGN SECURITIES.
------------------------------------------------------
MARKET
HIGHLIGHTS
- The Federal Reserve has raised the federal funds rate three times since the
start of the fiscal year. The yield on the ten-year Treasury note, which has
recently become the benchmark for interest rates, rose to 6.21% from 6.05%.
- The Dow Jones Utilities Index was higher on April 30 than on October 31,
despite rising interest rates and the market's expectation of additional rate
hikes in the near future.
- All sectors of the market were volatile, but technology and Internet-related
stocks experienced the greatest price declines, which coincided with
sustained price increases in the electric and gas utility averages.
*The S&P 500 is an unmanaged index generally representative of the U.S. stock
market. The Lipper Utility Funds Index is an equally weighted performance index
of the largest qualifying funds in this Lipper category. Source of the S&P
index data is Standard & Poor's Micropal. Source of the Lipper index data is
Lipper Inc.
3
<PAGE>
THE STRONG ASSET ALLOCATION FUND
--------------------------------
PERSPECTIVES
FROM THE MANAGERS
/s/ Rimas Milaitis /s/ Jeffrey A. Koch /s/ Bradley C. Tank
Rimas Milaitis Jeffrey A. Koch Bradley C. Tank
Portfolio Co-manager Portfolio Co-manager Portfolio Co-manager
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During the past six months, we searched for areas of the market that we
believe had the potential to exhibit superior relative revenue and earnings
growth. It is this discipline that led us to our investments in the energy
sector. The recovery in oil prices to the mid-$20 per barrel range, OPEC
coordination on supply, and strong global growth provide a solid backdrop for
profit growth of companies related to the energy sector. The Fund's investment
in Exxon Mobil Corp. is an example of how we are trying to leverage this
positive mix of events.
The performance of the technology sector during the period was exceptional
prior to the April correction. Investments in all forms of technology by
corporations--be it for communications, computing, or productivity-- fueled
this sector's superior earnings profile. We attempted to draw on the strong
demand in networking and semiconductors with investments in companies such as
Cisco Systems and Intel. These holdings boosted performance during the
period. --------------------------
Looking forward, the environment for corporate
profit growth is one of the best in history. Global WE ARE CAUTIOUSLY
economic activity continues at a strong pace. Signs
of slight deterioration in the balanced inflation OPTIMISTIC OVER
backdrop are beginning to appear through rising
labor costs as the labor market remains THE INTERMEDIATE-
exceptionally tight. This certainly has not gone
unnoticed by the Federal Reserve. We do expect TERM POTENTIAL
the Fed to continue to raise rates until some signs
of cooling appear, whether through labor costs FOR STOCKS.
or housing demand. --------------------------
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[SIDENOTE]
FUND
HIGHLIGHTS
- The Strong Asset Allocation Fund returned 7.66% for the six months ended
April 30, 2000, versus 7.20% for the S&P 500 Stock Index.(1), *
- Equities represented approximately 64% of Fund assets, with fixed-income
securities representing the balance.
- We raised the average credit quality of the bond portfolio and shortened its
duration during the period.
- The Fund's name is changing to the Strong Balanced Fund as of
June 23, 2000.
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AVERAGE ANNUAL
TOTAL RETURNS(1)
AS OF 4-30-00
<TABLE>
<S> <C>
1-year 9.47%
3-year 17.88%
5-year 16.10%
10-year 12.51%
Since Inception 14.25%
(on 12-30-81)
</TABLE>
Recent stock market fluctuations emphasize that equity funds can be volatile
investments. They should only be considered for long-term investment goals.
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ASSET ALLOCATIONS
<TABLE>
10-31-99 4-30-00
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<S> <C> <C>
Stocks 64.0% 63.2%
Bonds 31.3% 34.2%
Short-Term
Investments 4.7% 2.6%
</TABLE>
The Fund's asset allocation includes the effect of futures positions held by the
Fund.
(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.
4
<PAGE>
The Fed's options are somewhat constrained during this election year, as the
Fed will almost assuredly want to stay out of the picture as we draw close to
the election in November. In the meantime, bulls and bears alike will debate
the Fed's intentions with every piece of economic data that is released.
We are cautiously optimistic over the intermediate-term potential for stocks.
The combination of a gradualist Fed and strong profit growth could help stocks
move higher. Tight labor markets will certainly remain, however--potentially
increasing inflationary pressure without a commensurate rise in productivity. We
believe that the Fed's gradualist approach should allow the stock market to
absorb incremental rate hikes and move higher based on the stellar corporate
profit picture.
We thank you for your support and confidence. It's our goal to help you pursue
your future financial goals.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
FROM 12-30-81 TO 4-30-00
<TABLE>
<CAPTION>
The Strong S&P 500 Lipper Flexible
Asset Allocation Fund Stock Index Portfolio Funds Average
<S> <C> <C> <C>
Dec 81 $10,000 $10,000 $10,000
Dec 83 $19,344 $14,896 $15,295
Dec 85 $25,346 $20,853 $20,132
Dec 87 $29,734 $26,044 $24,544
Dec 89 $36,104 $39,993 $31,818
Dec 91 $44,393 $50,557 $39,653
Dec 93 $52,469 $59,892 $47,743
Dec 95 $63,028 $83,487 $58,865
Dec 97 $81,219 $136,906 $79,343
Dec 99 $113,836 $213,073 $101,583
Apr 00 $115,067 $211,402 $102,943
</TABLE>
This graph, prepared in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at the Fund's inception, with the performance of
the Standard & Poor's 500 Stock Index ("S&P 500") and the Lipper Flexible
Portfolio Funds Average. 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.
-------------------------------------------------------------------------------
[SIDENOTE]
YOUR FUND'S
APPROACH
THE STRONG ASSET ALLOCATION FUND SEEKS HIGH TOTAL RETURN CONSISTENT WITH
REASONABLE RISK OVER THE LONG TERM. THE FUND INVESTS IN A COMBINATION OF
STOCKS, BONDS, AND CASH. UNDER NORMAL CONDITIONS, ABOUT 60% OF ASSETS WILL BE
INVESTED IN STOCKS, 35% IN BONDS, AND 5% IN CASH. THE FUND'S BOND PORTFOLIO
CONSISTS PRIMARILY OF INTERMEDIATE-TERM CORPORATE BONDS OF HIGHER-, MEDIUM-,
AND LOWER-QUALITY. THE MANAGERS FOCUS PRIMARILY ON HIGH-YIELD BONDS WITH
POSITIVE OR IMPROVING CREDIT FUNDAMENTALS. THE FUND'S MANAGERS ATTEMPT TO
STRIKE A BALANCE BETWEEN AN INVESTMENT'S GROWTH AND INCOME PROSPECTS, AND ITS
POTENTIAL RISKS. TO A LIMITED EXTENT, THE FUND MAY ALSO INVEST IN FOREIGN
SECURITIES.
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MARKET
HIGHLIGHTS
- The Federal Reserve continued with its tightening bias by raising short-term
interest rates three times during the period.
- Signs of excess included a very tight labor market, a strong housing market,
and a speculative fever for stocks tied to the Internet.
- Performance in the technology sector came at the expense of all other
sectors. For most of the period, new economy stocks were bought without
regard to valuation and old economy stocks were sold off, again
regardless of valuation. This sharp dislocation in valuations--along with
rising interest rates--started a correction phase in the market in April.
*The S&P 500 Stock Index is an unmanaged index generally representative of the
U.S. stock market. The Lipper Flexible Portfolio Funds Average represents funds
that allocate their investments across various asset classes, including
domestic common stocks, bonds, and money market instruments with a focus on
total return. Source of the S&P index data is Standard & Poor's Micropal.
Source of the Lipper index data is Lipper Inc.
5
<PAGE>
THE STRONG EQUITY INCOME FUND
-----------------------------
PERSPECTIVES
FROM THE MANAGER
/s/ Rimas Milaitis
Rimas Milaitis
Portfolio Manager
-------------------------------------------------------------------------------
We have been particularly interested in the energy sector of late. Oil prices
recovering to the mid-$20 per barrel range, OPEC successfully controlling
supply, and strong global growth all provide a solid backdrop for energy-related
companies. Our investment in Exxon Mobil reflects our growing confidence in this
sector.
For most of the six months, performance in the technology sector was stunning.
Although this sector tends to be quite volatile, as we saw in April, investors
scrambled to virtually anything related to the latest trends in technology. What
was most peculiar about the period is not the extraordinary performance of
technology shares, but rather the willingness of investors to assume the success
of companies with little or no earnings. The Internet is a new medium through
which great gains in technological advancement and productivity should be made,
but to award multibillion-dollar market --------------------------
capitalizations to companies with little or no ALL IN ALL, WE
earnings smacked of pure speculation by investors.
The Fund was underweighted in the sector. BELIEVE THE FED'S
Our investments in this area focused on
large-capitalization, franchise semiconductor GRADUALIST APPROACH
companies such as Texas Instruments and
Intel. SHOULD ALLOW THE STOCK
Looking forward, the environment for corporate MARKET TO ABSORB
profit growth is one of the best in history, as
global economic activity continues on a strong INCREMENTAL RATE HIKES
pace. Signs of slight inflationary pressure remain,
and we do expect the Fed to continue its AND MOVE HIGHER.
tightening until the economy shows some sign --------------------------
--------------------------------------------------------------------------------
[SIDENOTE]
FUND
HIGHLIGHTS
- For the six months ended April 30, 2000, The Strong Equity Income Fund
returned 6.45%, while the S&P 500 Stock Index returned 7.20%.(1), *
- The technology sector continued to be the best performer. Investments in such
companies as Intel and Texas Instruments boosted performance.
- The Fund sought to tap into the energy sector's strong global growth and
recovery in fuel prices with an investment in Exxon Mobil Corporation.
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AVERAGE ANNUAL
TOTAL RETURNS(1)
AS OF 4-30-00
<TABLE>
<S> <C>
1-year 8.01%
3-year 19.66%
Since Inception 21.87%
(on 12-29-95)
</TABLE>
Recent stock market fluctuations emphasize that equity funds can be volatile
investments. They should only be considered for long-term investment goals.
-------------------------------------------------------------------------------
TOP FIVE INDUSTRIES
BASED ON NET ASSETS AS OF 4-30-00
<TABLE>
<CAPTION>
INDUSTRY % OF NET ASSETS
-----------------------------------
<S> <C>
Electronics--Semiconductor
Manufacturing 10.6%
Telecommunications--Services 6.9%
Oil--International Integrated 5.8%
Healthcare--Drug/Diversified 5.7%
Electrical Equipment 4.6%
</TABLE>
PLEASE SEE THE SCHEDULE OF INVESTMENTS IN SECURITIES FOR A COMPLETE LISTING OF
THE FUND'S PORTFOLIO.
(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.
6
<PAGE>
of cooling. Whatever action the Fed takes will be likely to happen well before
the November elections, as typically the Fed opts to stay out of the credit
markets as the election nears. In the meantime, the debate will rage on between
bulls and bears as to how much tightening will actually be needed.
With this in mind, we are cautiously optimistic regarding stocks' potential in
the intermediate term. The combination of a gradualist Federal Reserve and
strong profit growth could help stocks move higher. Oil prices have settled
into a comfortable range, and there appears to be some remaining capacity in
the manufacturing sector. But tight labor markets will certainly remain, which
can exert inflationary pressure absent a commensurate gain in productivity. All
in all, we believe the Fed's gradualist approach should allow the stock market
to absorb incremental rate hikes and move higher.
Thank you for your investment in the Strong Equity Income Fund.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
FROM 12-29-95 TO 4-30-00
<TABLE>
<CAPTION>
The Strong S&P 500 Lipper Large-Cap
Equity Income Fund Stock Index Value Funds Index
<S> <C> <C> <C>
Dec 95 $10,000 $10,000 $10,000
Jun 96 $11,296 $11,010 $10,883
Dec 96 $12,810 $12,296 $12,107
Jun 97 $15,126 $14,830 $14,189
Dec 97 $16,822 $16,398 $15,554
Jun 98 $19,327 $19,303 $17,539
Dec 98 $20,632 $21,085 $18,391
Jun 99 $22,231 $23,695 $20,456
Dec 99 $23,736 $25,522 $20,373
Apr 00 $23,560 $25,321 $20,176
</TABLE>
This graph, prepared in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of the
Standard & Poor's 500 Stock Index ("S&P 500") and the Lipper Large-Cap Value
Funds Index. 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.
-------------------------------------------------------------------------------
[SIDENOTE]
YOUR FUND'S
APPROACH
THE STRONG EQUITY INCOME FUND SEEKS TOTAL RETURN BY INVESTING FOR BOTH INCOME
AND CAPITAL GROWTH. THE FUND FOCUSES PRIMARILY ON THE STOCKS OF
LARGE-CAPITALIZATION, DIVIDEND-PAYING U.S. COMPANIES. TO CHOOSE INVESTMENTS,
THE MANAGER EVALUATES DOMESTIC AND INTERNATIONAL ECONOMIC CONDITIONS AND
EVENTS. THE MANAGER THEN IDENTIFIES STOCKS IN THOSE SECTORS THAT APPEAR LIKELY
TO BENEFIT FROM THOSE CONDITIONS, AND AVOIDS THOSE THAT APPEAR LIKELY TO
SUFFER. THE MANAGER'S PHILOSOPHY IS TO REMAIN FULLY INVESTED IN STOCKS,
DESPITE MARKET FLUCTUATIONS.
-------------------------------------------------------------------------------
MARKET
HIGHLIGHTS
- The Federal Reserve raised short-term interest rates 3 times for a total of
75 basis points. Inflationary concerns included a tight labor market, rising
commodity prices, high stock valuations, and a persistently strong housing
market.
- Technology stocks continued to outperform over most of the six months. Almost
all other sectors underperformed as the market discounted the negative impact
that rate hikes could have on economic activity and corporate profits.
- In the closing weeks of the period, investors began to respond to the
relatively low valuations of non-technology stocks. The result was April's
steep correction in technology shares.
* The S&P 500 is an unmanaged index generally representative of the U.S. stock
market. The Lipper Large-Cap Value Funds Index is an equally weighted
performance index of the largest qualifying funds in this Lipper category.
Source of the S&P index data is Standard & Poor's Micropal. Source of the Lipper
index data is Lipper Inc.
7
<PAGE>
THE STRONG LIMITED RESOURCES FUND
---------------------------------
PERSPECTIVES
FROM THE MANAGER
/s/ Mark A. Baskir
Mark A. Baskir
Portfolio Manager
-------------------------------------------------------------------------------
The past six months have finally seen some recognition of the strong
fundamentals and excellent values presented in the basic resources stocks. The
negatives that prevailed in 1998--recession in Southeast Asia, an oversupply of
oil, and warm winters--have now receded into investors' memories. What is
apparent now is that world economic activity is very healthy, despite moderate
inflation and higher interest rates. Demand for energy and other natural
resources increases as economies grow, so we believe the outlook for the
resources area looks very bright.
In the resources area, all industries are now seeing increased demand for their
products. Copper, paper and forest products, steel, aluminum, and chemicals
have all seen higher prices in the past few months. All these producers have
reduced capacity and cut inventories. As a result, ----------------------------
supply is lower, demand is higher, prices have
risen, and profitability has increased dramatically. ...WE BELIEVE THAT MANY
Nowhere are these fundamentals more graphically STOCKS IN THE RESOURCES
demonstrated than in the energy area. OPEC
recently raised oil production modestly, as prices AREA REMAIN UNDER-
exceeded $30, the highest level since the Iraq-
Kuwait war of 10 years ago. Oil prices have now VALUED RELATIVE TO
settled in the mid-$20s area, with the result that
demand is improving while investment in new HISTORICAL GROUP AND
supply is still subdued. The situation is similar
in North American natural gas, as demand is STOCK-MARKET VALUATIONS,
strong, new supply sources are minimal, and
prices have risen significantly. Considering this AND THEREFORE ARE STILL
environment, we increased the Fund's holdings
within the oil services industry. VERY ATTRACTIVE FOR
FUTURE APPRECIATION.
----------------------------
--------------------------------------------------------------------------------
[SIDENOTE]
FUND
HIGHLIGHTS
- The Strong Limited Resources Fund posted a return of 15.78% for the six
months ended April 30, 2000, while the S&P 500 Stock Index returned
7.20%.(1), *
- The Fund continued to outperform the general market during this period as
world economic activity continued to grow strongly. Demand for oil (and other
natural resources) improved, and OPEC continued to restrain oil production.
Also, other resources industries reduced capacity, slashed inventories, and
allowed prices to rise.
- The Fund benefited from a more aggressive posture in the face of improved
resource-area fundamentals. In particular, we increased holdings in oil
services.
-------------------------------------------------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS(1)
AS OF 4-30-00
<TABLE>
<S> <C>
1-year 11.51%
Since Inception 0.00%
(on 9-30-97)
</TABLE>
Recent stock market fluctuations emphasize that equity funds can be volatile
investments. They should only be considered for long-term investment goals.
-------------------------------------------------------------------------------
TOP FIVE INDUSTRIES
BASED ON NET ASSETS AS OF 4-30-00
<TABLE>
INDUSTRY % OF NET ASSETS
-----------------------------------
<S> <C>
Oil Well Equipment & Service 20.8%
Oil--North American
Exploration & Production 20.0%
Natural Gas Distribution 16.7%
Oil--North American Integrated 10.5%
Oil--International Integrated 9.8%
</TABLE>
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
(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.
8
<PAGE>
In the past few months, investors have responded positively to the improved
earnings results in resources companies, with many resources stocks appreciating
significantly during this time. Nonetheless, we believe that many stocks in the
resources area remain undervalued relative to historical group and stock-market
valuations, and therefore are still very attractive for future appreciation.
As demand for resources grows and supply remains tight, product prices should
rise, and corporate earnings should grow--an environment very positive for stock
prices. In addition, many resources industries are experiencing major
consolidations. These mergers are a response to the need to reduce capacity, cut
costs, and achieve a greater market presence. Notable transactions include BP
Amoco-Atlantic Richfield, Dow Chemical-Union Carbide, Alcoa-Reynolds Metals,
Anadarko Petroleum-Union Pacific Resources, and International Paper-Champion
International. In recognition of the opportunities these mergers offer, the Fund
has added to the more dynamic energy areas, such as oil service, exploration,
and production companies.
We believe that the market has just begun to recognize the strong fundamentals
inherent in the Fund's investments. We are very optimistic about the future.
Thank you for your patience and continued interest in the Strong Limited
Resources Fund.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
FROM 9-30-97 TO 4-30-00
<TABLE>
<CAPTION>
The Strong Limited S&P 500 Lipper Natural
Resources Fund Stock Index Resources Funds Index
<S> <C> <C> <C>
Sep 97 $10,000 $10,000 $10,000
Dec 97 $9,306 $10,287 $9,265
Apr 98 $9,706 $11,840 $9,871
Aug 98 $6,304 $10,248 $6,395
Dec 98 $7,275 $13,227 $7,123
Apr 99 $8,968 $14,424 $9,096
Aug 99 $9,168 $14,329 $9,672
Dec 99 $8,697 $16,010 $9,511
Apr 00 $10,000 $15,885 $10,530
</TABLE>
This graph, prepared in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of the
Standard & Poor's 500 Stock Index ("S&P 500") and the Lipper Natural Resources
Funds Index. 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.
-------------------------------------------------------------------------------
[SIDENOTE]
YOUR FUND'S
APPROACH
THE STRONG LIMITED RESOURCES FUND SEEKS TOTAL RETURN BY INVESTING FOR CAPITAL
GROWTH AND INCOME. THE FUND INVESTS PRIMARILY IN THE STOCKS OF COMPANIES
INVOLVED IN THE EXPLORATION, DEVELOPMENT, PRODUCTION, OR DISTRIBUTION OF ENERGY
AND OTHER NATURAL RESOURCES. IT FOCUSES ON LARGE- AND MEDIUM-CAPITALIZATION
COMPANIES THAT PAY CURRENT DIVIDENDS AND WHOSE EARNINGS ARE EXPECTED TO IMPROVE.
TO A LIMITED EXTENT, THE FUND MAY INVEST IN FOREIGN SECURITIES.
-------------------------------------------------------------------------------
MARKET
HIGHLIGHTS
- Natural resources stocks have recently outperformed the overall market.
Investors' interest was prompted by strong world economic activity as well as
rising prices for crude oil and natural gas, despite another warm winter.
- In general, the market became more volatile. Technology was strong for most
of this period, but faced heavy profit-taking in April.
- Overall, the fundamentals of inflation, interest rates, and earnings remain
generally positive. However, the equity and debt markets continue to focus on
these fundamentals, and any sign of deterioration could lead to temporary
market declines.
*The S&P 500 is an unmanaged index generally representative of the U.S. stock
market. The Lipper Natural Resources Funds Index is an equally weighted
performance index of the largest qualifying funds in this Lipper category.
Source of the S&P 500 index data is Standard & Poor's Micropal. Source of the
Lipper Natural Resources Funds Index is Lipper Inc.
9
<PAGE>
THE STRONG TOTAL RETURN FUND
----------------------------
PERSPECTIVES
FROM THE MANAGERS
/s/ Ronald C. Ognar /s/ Ian J. Rogers
Ronald C. Ognar Ian J. Rogers
Portfolio Co-manager Portfolio Co-manager
-------------------------------------------------------------------------------
Concerns over rising interest rates continued to dominate the stock market. In
the near term, the Fed is expected to continue its hawkish posture, though it
will likely adopt a neutral stance in advance of the presidential election.
Because of the worries over higher rates, equity markets have been highly
volatile. On April 14, the Nasdaq, which had been the leader among stock
indexes, had fallen over 30% from its level on March 27. The Dow, which hadn't
enjoyed as strong a run-up as the Nasdaq, had fallen over 11% from its level on
January 24. Rotation in and out of industry groups has been fast and furious as
investors attempt to identify the sector that will lead the markets. On a
positive note, money has continued to flow into equity mutual funds, and cash
reserves have been building in these funds. That means fund managers--including
ourselves--have been able to build some assets to deploy once the dust settles
a little more.
Offsetting potentially higher inflation are the ----------------------
gains being made in productivity. Technology
and innovation are the key drivers of these IN THE CURRENTLY
improvements. Corporate earnings are also very
positive. In the first quarter of 2000, for example, VOLATILE ENVIRONMENT,
corporate profits rose by 20.1% versus an 18%
rise for the fourth quarter of 1999. Even in the WE HAVE SEEN A
face of higher raw-materials costs, companies
have been able to improve profitability through ROTATION TO DEFENSIVE
productivity gains and cost-cutting.
NAMES FOR THE
In the currently volatile environment, we have
seen a rotation to defensive names for the sake of SAKE OF SAFETY.
safety. Newly emerging industries and companies
continue to report strong and accelerating ----------------------
--------------------------------------------------------------------------------
[SIDENOTE]
FUND
HIGHLIGHTS
- For the six months ended April 30, 2000, the Fund posted a total return of
32.97%, well ahead of the S&P 500's return of 7.20%.(1), *
- The Fund has continued its emphasis on high-quality growth companies.
- Effective May 1, 2000, the Fund's name is changing from the Strong Total
Return Fund to the Strong Large Cap Growth Fund. Income will no longer be a
stated goal of the Fund.
-------------------------------------------------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS(1)
AS OF 4-30-00
<TABLE>
<S> <C>
1-year 41.45%
3-year 36.80%
5-year 28.34%
10-year 19.88%
Since Inception 18.50%
(on 12-30-81)
</TABLE>
Please keep in mind that high double-digit returns are highly unusual and
cannot be sustained. Investors should also be aware that recent returns were
primarily achieved during favorable market conditions, especially within the
technology sector. Recent stock market fluctuations emphasize that equity funds
can be volatile investments. They should only be considered for long-term
investment goals.
-------------------------------------------------------------------------------
TOP FIVE INDUSTRIES
BASED ON NET ASSETS AS OF 4-30-00
<TABLE>
INDUSTRY % OF NET ASSETS
-------------------------------------------------------------------------------
<S> <C>
Electronics--Semiconductor
Manufacturing 11.8%
Computer Software 9.4%
Telecommunication Equipment 7.6%
Healthcare--Drug/Diversified 5.5%
Electrical Equipment 4.9%
</TABLE>
Please see the schedule of investments in securities for a complete listing of
the Fund's portfolio.
(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.
10
<PAGE>
revenue growth, yet their valuations have seen big declines. These high-quality
emerging companies are no longer as pricey as they used to be, yet their
fundamentals remain solid. As the Fed actively seeks to temper the economy
through interest-rate hikes, we anticipate that many of these stocks will
remain under some price pressure. For this portfolio, we will continue to focus
our efforts on identifying the highest-quality growth companies at valuations
that make good investment sense.
Among the areas that have become more attractive are telecommunications,
technology, software, and networking stocks. Our holdings within the technology
sector provided meaningfully to the Fund's return. Specifically, during the past
six months, we purchased several securities within the technology sector,
including JDS Uniphase, VeriSign, Juniper Networks, and Sun Microsystems. We did
sell several technology holdings, as well, including Microsoft, Lexmark
International Group, and Yahoo! We also expect to see a peak in interest rates,
which will give us an opportunity to add to high-growth financials. Many of
these stocks have been lagging and should move forward as inflation fears
subside. The economy remains strong. We view the recent stock market correction,
unsettling as it may be in the short term, as normal and even healthy.
We thank you for your continuing support and look forward to serving you
in the years to come.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
FROM 12-30-81 TO 4-30-00
<TABLE>
<CAPTION>
The Strong S&P 500 Lipper Large-Cap
Total Return Fund Stock Index Growth Funds Index
<S> <C> <C> <C>
Dec 81 $10,000 $10,000 $10,000
Dec 83 $18,720 $14,896 $15,808
Dec 85 $25,936 $20,853 $20,107
Dec 87 $33,002 $26,044 $24,258
Dec 89 $39,140 $39,993 $35,572
Dec 91 $48,578 $50,557 $47,967
Dec 93 $59,851 $59,892 $56,735
Dec 95 $74,963 $83,487 $75,916
Dec 97 $106,181 $136,906 $116,777
Dec 99 $223,975 $213,073 $214,856
Apr 00 $224,499 $211,402 $214,338
</TABLE>
This graph, prepared in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of the
Standard & Poor's 500 Stock Index ("S&P 500") and the Lipper Large-Cap Growth
Funds Index. 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.
-------------------------------------------------------------------------------
[SIDENOTE]
YOUR FUND'S
APPROACH
THE STRONG TOTAL RETURN FUND SEEKS HIGH TOTAL RETURN BY INVESTING FOR CAPITAL
GROWTH AND INCOME. THE FUND EMPHASIZES STOCKS OF LARGE- AND MEDIUM-
CAPITALIZATION COMPANIES WITH STEADY OR GROWING DIVIDENDS. THE FUND'S MANAGERS
SEEK TO IDENTIFY REASONABLY PRICED COMPANIES THAT HAVE ACCELERATING SALES AND
EARNINGS, ENJOY A COMPETITIVE ADVANTAGE, AND HAVE EFFECTIVE MANAGEMENT TEAMS.
WHEN MARKET CONDITIONS ARE FAVORABLE, THE FUND MAY INVEST A SIGNIFICANT PORTION
OF ITS ASSETS IN BONDS. THE FUND WRITES PUT AND CALL OPTIONS AND, TO A LIMITED
EXTENT, MAY INVEST IN FOREIGN SECURITIES.
-------------------------------------------------------------------------------
MARKET
HIGHLIGHTS
- The Federal Reserve continued its tightening stance, with three rate hikes
over the six-month period.
- Corporate earnings remain strong, with double-digit growth.
- In April, worries about inflation and the Fed's activity had a sharp impact
on the markets. Both the Nasdaq and Dow suffered significant declines during
April. On April 14, the Nasdaq had fallen over 30% from its level on
March 27, while the Dow had fallen over 11% from its level on January 24.
* The S&P 500 is an unmanaged index generally representative of the U.S. stock
market. The Lipper Large-Cap Growth Funds Index is an equally weighted
performance index of the largest qualifying funds in this Lipper category.
Source of the S&P 500 Stock Index is Standard & Poor's Micropal. Source of the
Lipper index data is Lipper Inc.
11
<PAGE>
THE STRONG BLUE CHIP 100 FUND
-----------------------------
PERSPECTIVES
FROM THE MANAGER
/s/ Karen E. McGrath
Karen E. McGrath
Portfolio Manager
-------------------------------------------------------------------------------
In recent months, investors have been confronted with an array of economic and
financial crosscurrents, in addition to severe market volatility. Many
conflicting theories and forecasts have come to the fore.
While the U.S. economy remains very healthy, as we have noted in previous
reports, in the short term, it appears to be growing too fast. Excess consumer
demand appears to be the driving force, which has had some negative
consequences. Namely, we all may have to take some bitter medicine in the form
of higher interest rates to ensure that the economy will continue to enjoy good
health without incurring higher inflation rates over the longer term. In
response to rising interest rates, we have lightened our holdings in interest-
rate sensitive sectors, such as consumer durables and financials. If the Federal
Reserve is successful in slowing growth --------------------------
and extending the profit cycle, as we believe
it will be, then stock prices should respond FOR THE STOCK MARKET,
positively with higher prices over the
months ahead. THE MOST IMPORTANT
For the stock market, the most important ASSUMPTION IS THAT THE
assumption is that the economic and profit
expansion should continue through the year ECONOMIC AND PROFIT
2001. We anticipate that actual corporate
operating profits should grow at a double- EXPANSION SHOULD
digit rate, with stock prices outperforming
based on strong earnings. CONTINUE THROUGH
It's our opinion that the growth in tech- THE YEAR 2001.
nology will continue, driven by continued
building of communications and Internet
--------------------------
--------------------------------------------------------------------------------
[SIDENOTE]
FUND
HIGHLIGHTS
- In recent months, the Fund underweighted interest-rate sensitive economic
sectors, such as consumer durables and financials.
- More than half the portfolio was invested in the technology sector, in both
data and communications. These stocks contributed positively to the Fund's
performance. This sector appears to have the greatest potential for above-
average growth in revenues and earnings.
-------------------------------------------------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS
AS OF 4-30-00
<TABLE>
<CAPTION>
INVESTOR CLASS
---------------
<S> <C>
1-year 30.37%
Since Inception 33.09%
(on 6-30-97)
<CAPTION>
ADVISOR CLASS(1)
----------------
<S> <C>
1-year 30.16%
Since Inception 32.88%
(on 6-30-97)
</TABLE>
RECENT STOCK MARKET FLUCTUATIONS EMPHASIZE THAT EQUITY FUNDS CAN BE VOLATILE
INVESTMENTS. THEY SHOULD ONLY BE CONSIDERED FOR LONG-TERM INVESTMENT GOALS.
-------------------------------------------------------------------------------
TOP FIVE INDUSTRIES
BASED ON NET ASSETS AS OF 4-30-00
<TABLE>
<CAPTION>
INDUSTRY % OF NET ASSETS
-----------------------------------
<S> <C>
Computer Software 14.2%
Electronics--Semiconductor
Manufacturing 10.2%
Computer--Manufacturers 7.6%
Telecommunication Equipment 7.5%
Telecommunication--Services 6.5%
</TABLE>
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
(1) The performance of the Advisor Class shares prior to 2-28-00 is based on the
Fund's Investor Class shares' performance, restated for the higher expense
ratio of the Advisor Class shares. Please consult a prospectus for
information about all share classes.
12
<PAGE>
infrastructures, the resurgence in Asia, and the need for spending on technology
to improve corporate efficiency and to meet growing international competition.
Large technology companies are attractive investments for several reasons: their
global presence, strong financial positions, and profitable business models. The
Fund will continue to have a meaningful investment in this sector--even though
its unprecedented growth opportunities are accompanied by unprecedented
volatility.
The Fed's goal is economic expansion at a pace consistent with mild-mannered
inflation. And aside from oil prices, there are few signs of inflationary
pressure. After the April price adjustment that hit the markets, investors can
now focus more on the fact that Federal Reserve policy is aimed at slowing and
extending, not stopping, economic growth.
Thank you for your continued investment in the Strong Blue Chip 100 Fund.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
FROM 6-30-97 TO 4-30-00
<TABLE>
<CAPTION>
The Strong S&P 500 Lipper Large-Cap
Blue Chip 100 Fund Stock Index Growth Funds Index
<S> <C> <C> <C>
Jun 97 $10,000 $10,000 $10,000
Dec 97 $10,872 $11,058 $10,932
Jun 98 $13,233 $13,016 $13,171
Dec 98 $15,647 $14,218 $14,920
Jun 99 $17,634 $15,978 $16,708
Dec 99 $21,730 $17,210 $20,115
Apr 00 $22,477 $17,075 $20,066
</TABLE>
This graph, prepared in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at the Fund's inception, with the performance of
the Standard & Poor's 500 Stock Index ("S&P 500") and the Lipper Large-Cap
Growth Funds Index. 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. This graph is based on Investor Class shares
only; performance for other classes will vary due to differences in fee
structures.
-------------------------------------------------------------------------------
[SIDENOTE]
YOUR FUND'S
APPROACH
THE STRONG BLUE CHIP 100 FUND SEEKS TOTAL RETURN BY INVESTING FOR CAPITAL
GROWTH AND INCOME. THE FUND INVESTS IN THE COMMON STOCKS OF THE 100 LARGEST
MARKET CAPITALIZATION COMPANIES PRIMARILY TRADED IN THE U.S. AS DETERMINED BY
THE FUND'S MANAGER. THESE BLUE CHIP STOCKS TEND TO PAY HIGHER DIVIDENDS THAN
MEDIUM- AND SMALL-CAPITALIZATION STOCKS. HALF OF THE FUND'S ASSETS ARE INVESTED
IN THESE STOCKS IN PROPORTION TO SIZE. THE OTHER HALF OF THE FUND'S ASSETS ARE
SELECTIVELY INVESTED IN 20 TO 30 OF THOSE SAME 100 COMPANIES. THE PORTFOLIO
MANAGER FOCUSES ON THOSE COMPANIES THAT THE FUND'S MANAGER BELIEVES OFFER
GREATER RETURN POTENTIAL. TO A LIMITED EXTENT, THE FUND MAY ALSO INVEST IN
DOLLAR-DENOMINATED FOREIGN SECURITIES.
-------------------------------------------------------------------------------
MARKET
HIGHLIGHTS
- Oil prices have been rising, along with business costs.
- With the Federal Reserve continuing to raise interest rates and high stock
valuations in many sectors, investors found plenty of reason to take some
profits. A sharp, extensive price correction resulted in April, with few
stocks being spared.
- The correction to date has gone a long way toward discounting the negative
factors discussed in the preceding two points.
* The S&P 500 is an unmanaged index generally representative of the U.S. stock
market. The Lipper Large-Cap Growth Funds Index is an equally weighted
performance index of the largest qualifying funds in this Lipper category.
Source of the S&P 500 index data is Standard & Poor's Micropal. Source of
the Lipper index data is Lipper Inc.
13
<PAGE>
THE STRONG GROWTH AND INCOME FUND
---------------------------------
PERSPECTIVES
FROM THE MANAGER
/s/ Rimas Milaitis
Rimas Milaitis
Portfolio Manager
-------------------------------------------------------------------------------
Opportunities in technology abound, despite the market correction in
technology stocks we saw in April. Many innovations have occurred in wireless
communications, the Internet, and high-speed data transfer. Determining areas
of strength is only the beginning, though. We must then find specific
franchise companies that appear to be in the best position for growth. We
believe one such company is STMicroelectronics, a producer of a broad array
of semiconductors used in many of the high-growth areas of technology. In
addition, Cisco Systems continues to be a favorite due to its dominance in
fast-growth networking.
In contrast, our emphasis in financial stocks waned as the Federal Reserve
continued on its tightening path. Rising
short-term interest rates typically
have a negative impact on banks' net --------------------------------
interest margins, hurting profitability.
The Fund retained some exposure to this OUR GOAL IS TO
sector, but only in companies with
strong franchises and diversified CAPITALIZE ON THE
revenue streams such as American Express
and Citigroup. ECONOMY'S STRENGTHS,
In times like these, when one sector BUT TO DO SO WITH A
dominates the market's performance, it's
essential to be forward-thinking, rather STRATEGY THAT'S
than getting lulled into a sense
that old laws of economics have been APPROPRIATE FOR A
repealed. (It's our observation that,
while they may be stretched from time CORE INVESTMENT.
to time, they are rarely repealed.) So,
we are crafting a diversified approach, --------------------------------
with exposure to dominant companies
in growing end markets
-----------------------------------------------------------------------------
[SIDENOTE]
FUND
HIGHLIGHTS
- Our overweighting in technology benefited performance as the sector
continued to outperform the major stock averages.
- In contrast, the Fund pared back its exposure to the financial sector, as
we believed the Federal Reserve would continue its tightening of monetary
policy.
-----------------
AVERAGE ANNUAL
TOTAL RETURNS
As of 4-30-00
<TABLE>
<CAPTION>
INVESTOR CLASS
--------------
<S> <C>
1-year 23.99%
3-year 30.29%
Since Inception 29.84%
(on 12-29-95)
<CAPTION>
ADVISOR CLASS (1)
-----------------
<S> <C>
1-year 23.80%
3-year 30.05%
Since Inception 29.60%
(on 12-29-95)
<CAPTION>
INSTITUTIONAL CLASS(2)
----------------------
<S> <C>
1-year 24.12%
3-year 30.33%
Since Inception 29.87%
(on 12-29-95)
</TABLE>
Recent stock market fluctuations emphasize that equity funds can be volatile
investments. They should only be considered for long-term investment goals.
----------------------------------
TOP FIVE INDUSTRIES
BASED ON NET ASSETS AS OF 4-30-00
<TABLE>
<CAPTION>
INDUSTRY % OF NET ASSETS
----------------------------------
<S> <C>
Electronics--Semiconductor
Manufacturing 18.6%
Computer Software 9.4%
Telecommunication Equipment 8.0%
Healthcare--Drug/Diversified 7.0%
Electrical Equipment 5.3%
</TABLE>
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
(1) The performance of the Advisor Class shares prior to 2-28-00 is based on
the Fund's Investor Class shares' performance, restated for the higher
expense ratio of the Advisor Class shares. Please consult a prospectus
for information about all share classes.
(2) The performance of the Institutional Class shares prior to 2-28-00 is
based on the Fund's Investor Class shares' performance. Please consult a
prospectus for information about all share classes.
14
<PAGE>
such as Anheuser Busch, Warner-Lambert, and General Electric. Our goal is to
capitalize on the economy's strengths, but to do so with a strategy that's
appropriate for a core investment.
The economic environment is one of the best in history. Corporate profit
growth continues at a strong pace as investment in technology increases
productivity levels. The pace of economic activity is, however, beyond the
Fed's comfort level. We fully anticipate the Fed will continue to raise rates
until some signs of cooling appear, though the Fed will likely want to be out
of the picture as November's presidential election draws near.
With this in mind, we are cautiously optimistic over the intermediate term on
the potential for further appreciation in stocks. The Fed's gradualist
approach should allow the stock market to absorb incremental rate hikes and
move higher based on the stellar corporate profit environment.
Thank you for your continued support. We continue to strive for excellence in
our investment performance through our disciplined process, and we hope to
assist you in meeting your financial goals.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
FROM 12-29-95 TO 4-30-00
<TABLE>
<CAPTION>
The Strong Growth S&P 500 Lipper Large-Cap
and Income Fund Stock Index Core Fund Index
<S> <C> <C> <C>
Dec 95 $10,000 $10,000 $10,000
Jun 96 $11,556 $11,010 $10,896
Dec 96 $13,191 $12,296 $11,984
Jun 97 $15,469 $14,830 $14,114
Dec 97 $17,199 $16,398 $15,486
Jun 98 $20,447 $19,303 $18,280
Dec 98 $22,866 $21,085 $19,657
Jun 99 $25,842 $23,695 $21,644
Dec 99 $30,237 $25,522 $23,461
Apr 00 $31,008 $25,321 $23,663
</TABLE>
This graph, prepared in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of the
Standard & Poor's 500 Stock Index ("S&P 500") and the Lipper Large-Cap Core
Funds Index. 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. This graph is based on Investor Class shares
only; performance for other classes will vary due to differences in fee
structures.
------------------------------------------------------------------------------
[SIDENOTE]
YOUR FUND'S
APPROACH
THE STRONG GROWTH AND INCOME FUND SEEKS HIGH TOTAL RETURN BY INVESTING FOR
CAPITAL GROWTH AND INCOME. THE FUND FOCUSES PRIMARILY ON THE STOCKS OF
LARGE-CAPITALIZATION, DIVIDEND-PAYING U.S. COMPANIES THAT ALSO OFFER
POTENTIAL FOR CAPITAL GROWTH. TO CHOOSE INVESTMENTS, THE MANAGER EVALUATES
DOMESTIC AND INTERNATIONAL ECONOMIC CONDITIONS AND EVENTS. THE MANAGER THEN
IDENTIFIES STOCKS IN THOSE SECTORS THAT APPEAR LIKELY TO BENEFIT FROM THOSE
CONDITIONS, AND AVOIDS THOSE THAT APPEAR LIKELY TO SUFFER. TO A LIMITED
EXTENT, THE FUND MAY ALSO INVEST IN FOREIGN-BASED COMPANIES. THE MANAGER'S
PHILOSOPHY IS TO REMAIN FULLY INVESTED IN STOCKS, DESPITE MARKET FLUCTUATIONS.
------------------------------------------------------------------------------
MARKET HIGHLIGHTS
- The Federal Reserve raised interest rates three more times during the period.
That made for a total of five rate hikes in the current tightening cycle.
- Technology stocks continued to outperform during this period in spite of the
Federal Reserve's attempts to cool economic activity and perceived market
speculation. In contrast, almost all other sectors of the market began to
discount the potentially negative impact that the Fed's actions could have on
earnings.
- Having taken technology valuations to new heights, investors began to
broaden their interest beyond technology. A sharp correction ensued in the
sector in April.
*The S&P 500 Stock Index is an unmanaged index generally representative of
the U.S. stock market. The Lipper Large-Cap Core Funds Index is an equally
weighted performance index of the largest qualifying funds in this Lipper
category. Source of the S&P 500 index data is Standard & Poor's Micropal.
Source of the Lipper index data is Lipper Inc.
15
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES April 30, 2000 (Unaudited)
------------------------------------------------------------------------------
STRONG AMERICAN UTILITIES FUND
--------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
---------------------------------------------------------------
Common Stocks 94.9%
---------------------------------------------------------------
Electric Power 0.1%
Northeast Utilities 7,000 $ 150,500
Electric Utility 29.9%
The AES Corporation (b) 19,000 1,708,812
Allegheny Energy, Inc. 15,000 455,625
Ameren Corporation 57,000 2,091,188
CMS Energy Corporation 101,000 1,919,000
DTE Energy Company 22,400 730,800
Dominion Resources, Inc. 334,535 15,054,075
Duke Energy Corporation 160,000 9,200,000
FirstEnergy Corporation 105,000 2,670,937
NSTAR Companies 10,000 440,625
NiSource, Inc. 243,500 4,504,750
PPL Corporation 3,000 71,625
SCANA Corporation 426,199 11,027,899
TECO Energy 425,000 9,296,875
Wisconsin Energy Corporation 116,500 2,490,187
------------
61,662,398
Energy Related 22.7%
Anadarko Petroleum Corporation 6,500 282,344
BP Amoco PLC Sponsored ADR 184,532 9,411,132
Chevron Corporation 39,200 3,336,900
Conoco, Inc. Class A 4,000 95,250
Exxon Corporation 117,000 9,089,437
Imperial Oil, Ltd. 297,700 6,995,950
Kerr McGee Corporation 79,000 4,088,250
Phillips Petroleum Company 23,500 1,114,781
Royal Dutch Petroleum Company - New York
Registry Shares 213,200 12,232,350
Tosco Corporation 5,500 176,344
------------
46,822,738
Gas Utility 21.5%
Coastal Corporation 81,000 4,065,187
Columbia Energy Group 20,000 1,255,000
Dynegy, Inc. 104,850 6,861,122
El Paso Energy Corporation 36,000 1,530,000
Enron Corporation 195,200 13,603,000
Equitable Resources, Inc. 142,800 6,622,350
Halliburton Company 94,200 4,162,463
National Fuel Gas Company 14,100 668,869
Oneok, Inc. 6,000 151,500
Vectren Corporation 219,665 4,420,758
The Williams Companies, Inc. 30,200 1,126,838
------------
44,467,087
Other Utility 0.4%
American Water Works Company, Inc. 40,000 907,500
Telecommunication 20.3%
AT&T Corporation 75,200 3,510,900
Alltel Corporation 76,800 5,116,800
Bell Atlantic Corporation 151,400 8,970,450
BellSouth Corporation 151,400 7,371,288
GTE Corporation 67,500 4,573,125
MCI WorldCom, Inc. (b) 22,300 1,013,256
MediaOne Group, Inc. (b) 73,000 5,520,625
SBC Communications, Inc. 51,800 2,269,488
Sprint Corporation 57,000 3,505,500
------------
41,851,432
--------------------------------------------------------------
Total Common Stocks (Cost $160,639,892) 195,861,655
--------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
--------------------------------------------------------------
Short-Term Investments (a) 4.7%
Commercial Paper 1.5%
Interest Bearing, Due Upon Demand
Sara Lee Corporation, 5.76% $ 875,000 $ 875,000
Warner Lambert Company, 5.76% 1,120,800 1,120,800
Wisconsin Electric Power Company, 5.76% 1,161,700 1,161,700
------------
3,157,500
Repurchase Agreements 3.2%
ABN-Amro Inc. (Dated 4/28/00), 5.78%,
Due 5/01/00 (Repurchase proceeds $6,503,131);
Collateralized by: U.S. Government & Agency
Issues (e) 6,500,000 6,500,000
--------------------------------------------------------------
Total Short-Term Investments (Cost $9,657,500) 9,657,500
--------------------------------------------------------------
--------------------------------------------------------------
Total Investments in Securities
(Cost $170,297,392) 99.6% 205,519,155
Other Assets and Liabilities, Net 0.4% 773,417
--------------------------------------------------------------
Net Assets 100.0% $206,292,572
==============================================================
--------------------------------------------------------------
STRONG ASSET ALLOCATION FUND
--------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
--------------------------------------------------------------
Common Stocks 61.2%
Aerospace & Defense 0.4%
The Boeing Company 37,000 $ 1,468,438
Automobile 0.5%
Ford Motor Company 30,800 1,684,375
Bank - Money Center 2.9%
The Chase Manhattan Corporation 37,200 2,680,725
Citigroup, Inc. 129,500 7,697,156
------------
10,377,881
Bank - Super Regional 0.5%
The Bank of New York Company, Inc. 40,500 1,663,031
Beverage - Alcoholic 0.4%
Anheuser-Busch Companies, Inc. 21,000 1,481,813
Beverage - Soft Drink 0.5%
The Coca-Cola Company 14,000 658,875
PepsiCo, Inc. 32,000 1,174,000
------------
1,832,875
Brokerage & Investment Management 0.2%
Morgan Stanley, Dean Witter & Company 10,400 798,200
Chemical 0.2%
Union Carbide Corporation 12,000 708,000
Computer - Manufacturers 1.2%
Compaq Computer Corporation 25,000 731,250
International Business Machines
Corporation 31,500 3,516,188
------------
4,247,438
Computer - Peripheral Equipment 0.7%
EMC Communications Corporation (b) 18,000 2,500,875
Computer Service 0.9%
Computer Sciences Corporation (b) 31,500 2,569,219
Electronic Data Systems Corporation 9,400 646,250
------------
3,215,469
Computer Software 6.2%
Cisco Systems, Inc. (b) 170,000 11,785,781
Microsoft Corporation (b) 72,500 5,056,875
Oracle Systems Corporation (b) 62,000 4,956,125
------------
21,798,781
</TABLE>
16
<PAGE>
--------------------------------------------------------------
STRONG ASSET ALLOCATION FUND (continued)
--------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
--------------------------------------------------------------
Container 0.0%
SF Holdings Group, Inc. Class C
(Acquired 1/05/99;
Cost $3,750) (b) (d) 100 $ 1
Cosmetic & Personal Care 0.6%
Estee Lauder Companies, Inc. Class A 13,400 591,275
The Gillette Company 43,000 1,591,000
------------
2,182,275
Diversified Operations 1.2%
E.I. Du Pont de Nemours & Company 11,000 521,813
Honeywell International, Inc. 9,200 515,200
Textron, Inc. 18,000 1,114,875
Tyco International, Ltd. 48,132 2,211,064
------------
4,362,952
Electric Power 0.6%
Duke Energy Corporation 18,000 1,035,000
UNICOM Corporation 23,500 934,125
------------
1,969,125
Electrical Equipment 4.0%
Emerson Electric Company 21,000 1,152,375
General Electric Company 76,000 11,951,000
Parker-Hannifin Corporation 20,000 930,000
------------
14,033,375
Electronics - Semiconductor Equipment 0.9%
Applied Materials, Inc. (b) 30,000 3,054,375
Electronics - Semiconductor Manufacturing 7.1%
Atmel Corporation (b) 20,000 978,750
Intel Corporation 63,400 8,039,912
LSI Logic Corporation (b) 84,000 5,250,000
STMicroelectronics NV 28,000 5,311,250
Texas Instruments, Inc. 18,000 2,931,750
Xilinx, Inc. (b) 31,000 2,270,750
------------
24,782,412
Finance - Miscellaneous 0.9%
American Express Company 14,600 2,190,912
First Data Corporation 20,000 973,750
------------
3,164,662
Food 0.2%
Quaker Oats Company 8,500 554,094
Healthcare - Drug/Diversified 3.0%
American Home Products Corporation 23,000 1,292,313
Johnson & Johnson 17,500 1,443,750
Merck & Company, Inc. 49,000 3,405,500
Pharmacia Corporation 12,495 623,969
Schering-Plough Corporation 29,600 1,193,250
Warner-Lambert Company 21,700 2,469,731
------------
10,428,513
Housing Related 0.5%
Masco Corporation 71,000 1,593,063
Insurance - Diversified 0.5%
Marsh & McLennan Companies, Inc. 18,000 1,774,125
Insurance - Property & Casualty 0.8%
American International Group, Inc. 24,500 2,687,344
Internet - Internet Service Provider/Content 1.5%
America Online, Inc. (b) 85,600 5,119,950
Media - Cable TV 2.5%
AT&T Corporation-Liberty Media Group
Class A (b) 66,000 3,295,875
Cox Communications, Inc. Class A (b) 37,000 1,584,062
Time Warner, Inc. 42,000 3,777,375
------------
8,657,312
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
--------------------------------------------------------------
Media - Publishing 0.9%
Gannett Company, Inc. 16,200 $ 1,034,775
McGraw-Hill, Inc. 41,800 2,194,500
------------
3,229,275
Media - Radio/TV 1.6%
CBS Corporation (b) 63,000 3,701,250
Clear Channel Communications, Inc. (b) 27,400 1,972,800
------------
5,674,050
Metals & Mining 0.4%
Alcoa, Inc. 21,000 1,362,375
Mortgage & Related Service 0.6%
Federal National Mortgage Association 37,000 2,231,563
Office Automation 0.1%
Xerox Corporation 18,000 475,875
Oil - International Integrated 3.5%
BP Amoco PLC Sponsored ADR 44,500 2,269,500
Chevron Corporation 29,000 2,468,625
Exxon Mobil Corporation 71,347 5,542,770
Royal Dutch Petroleum Company -
New York Registry Shares 35,000 2,008,125
------------
12,289,020
Oil Well Equipment & Service 0.4%
Halliburton Company 16,800 742,350
Key Energy Services, Inc. (b) 14,489 141,268
Schlumberger, Ltd. 8,500 650,781
------------
1,534,399
Paper & Forest Products 0.1%
International Paper Company 14,000 514,500
Retail - Drug Store 0.5%
Walgreen Company 63,500 1,785,938
Retail - Food Chain 0.5%
Safeway, Inc. (b) 37,000 1,632,625
Retail - Major Chain 2.5%
Target Corporation 40,500 2,695,781
Wal-Mart Stores, Inc. 109,000 6,035,875
------------
8,731,656
Retail - Specialty 2.6%
Gap, Inc. 30,825 1,132,819
The Home Depot, Inc. 86,400 4,843,800
Lowe's Companies, Inc. 41,800 2,069,100
Tandy Corporation 19,900 1,134,300
------------
9,180,019
Soap & Cleaning Preparation 0.2%
Clorox Company 22,000 808,500
Telecommunication Equipment 3.1%
JDS Uniphase Corporation (b) 8,800 912,450
Lucent Technologies, Inc. 33,100 2,058,406
Motorola, Inc. 35,500 4,226,719
Nortel Networks Corporation 32,000 3,624,000
------------
10,821,575
Telecommunications - Services 4.5%
AT&T Corporation 81,750 3,816,703
Bell Atlantic Corporation 37,600 2,227,800
Corning, Inc. 5,000 987,500
MCI WorldCom, Inc. (b) 121,630 5,526,563
Sprint Corporation 52,000 3,198,000
------------
15,756,566
Telephone 0.8%
SBC Communications, Inc. 66,539 2,915,240
--------------------------------------------------------------
Total Common Stocks (Cost $120,718,513) 215,083,930
--------------------------------------------------------------
</TABLE>
17
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) April 30, 2000 (Unaudited)
-------------------------------------------------------------------------------
STRONG ASSET ALLOCATION FUND (continued)
--------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
--------------------------------------------------------------
Warrants 0.4%
Aladdin Gaming Holdings LLC,
Expire 3/01/10 40,000 $ 400
American Telecasting, Inc.,
Expire 8/10/00 350 0
CD Radio, Inc., Expire 5/15/09 (d) 7,500 810,000
Concentric Network, Expire 12/15/07
(Acquired 12/15/97; Cost $6,980) (d) 2,000 94,000
e.spire Communications, Inc.,
Expire 11/01/05 1,750 131,250
MEDIQ, Inc., Expire 6/01/09
(Acquired 5/21/98; Cost $0) (d) 3,750 38
R&B Falcon Corporation, Expire 5/01/09 (d) 1,500 525,000
--------------------------------------------------------------
Total Warrants (Cost $247,142) 1,560,688
--------------------------------------------------------------
Preferred Stocks 2.0%
Nextlink Communications, Inc. 14.00%
Senior Exchangeable (f) 44,029 2,168,423
R&B Falcon Corporation 13.875% Senior
Preferred (f) 1,725 1,845,429
Rural Cellular Corporation 12.25% Junior
Exchangeable 3,000 2,917,500
--------------------------------------------------------------
Total Preferred Stocks (Cost $6,787,743) 6,931,352
--------------------------------------------------------------
Corporate Bonds 19.0%
AKI, Inc. Senior Notes, 10.50%,
Due 7/01/08 $ 800,000 684,000
APCOA/Standard Parking, Inc.
Senior Subordinated Notes, 9.25%,
Due 3/15/08 2,250,000 1,068,750
Aladdin Gaming Holdings LLC/Aladdin
Capital Corporation Senior Discount
Notes, Zero %, Due 3/01/10
(Rate Reset Effective 3/01/03) 4,000,000 2,080,000
@Entertainment, Inc. Senior Discount Notes,
Series B:
Zero %, Due 7/15/08 (Rate Reset
Effective 7/15/03) 1,500,000 982,500
Zero %, Due 2/01/09 (Rate Reset
Effective 2/01/04) 500,000 307,500
Avencia Group PLC Notes, 11.00%,
Due 7/01/09 (d) 1,500,000 1,530,000
William Carter Senior Subordinated Notes,
Series A, 10.375%, Due 12/01/06 1,000,000 855,000
Cendant Corporation Notes, 7.75%,
Due 12/01/03 2,000,000 1,972,384
Charter Communications Holdings LLC/Charter
Communications Holdings Capital
Corporation Senior Notes, 10.00%,
Due 4/01/09 (d) 1,000,000 967,500
GS Escrow Corporation Senior Notes,
7.00%, Due 8/01/03 5,000,000 4,582,150
GT Group Telecom, Inc. Units, Zero %,
Due 2/01/10 (Rate Reset
Effective 2/01/05) (d) 6,000,000 3,240,000
Intermedia Communications, Inc.
Senior Notes, Series B, 13.50%,
Due 6/01/05 241,000 258,246
Jazz Casino Company LLC Senior
Subordinated Notes, 5.867%,
Due 11/15/09 1,500,000 474,375
Key Energy Services, Inc. Senior
Subordinated Notes, 14.00%,
Due 1/15/09 1,000,000 1,097,500
Level 3 Communications, Inc.
Senior Notes, 11.00%,
Due 3/15/08 (d) 1,500,000 1,458,750
MEDIQ, Inc. Senior Discount Debentures,
Zero %, Due 6/01/09 (Rate Reset
Effective 6/01/03) 3,750,000 206,250
MetroNet Communications Corporation Senior
Yankee Notes, 10.625%, Due 11/01/08 2,000,000 2,219,932
Motors and Gears, Inc. Senior Notes, Series C,
10.75%, Due 11/15/06 2,800,000 2,674,000
NTL Communications Corporation Senior
Notes, Series B, 11.50%, Due 10/01/08 1,500,000 1,530,000
Nextlink Communications, Inc. Senior Discount
Notes, Zero %, Due 6/01/09 (Rate Reset
Effective 6/01/04) 4,000,000 2,360,000
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
--------------------------------------------------------------
Niagara Mohawk Power Corporation
Senior Notes, Series C, 7.125%,
Due 7/01/01 (c) $3,780,488 $ 3,739,825
Northpoint Communications Group, Inc.
Senior Notes, 12.875%,
Due 2/15/10 (d) 2,700,000 2,416,500
Orbital Imaging Corporation Senior Notes,
Series D, 11.625%, Due 3/01/05 2,000,000 1,010,000
Orion Power Holdings, Inc. Senior Notes,
12.00%, Due 5/01/10 (d) 1,000,000 1,007,500
Premier Graphics, Inc. Senior Notes,
11.50%, Due 12/01/05 2,500,000 1,137,500
RSL Communications PLC Senior Yankee
Notes, 12.875%, Due 3/01/10 (d) 1,000,000 960,000
Renaissance Media Louisiana
LLC/Renaissance Media
Tennessee/Renaissance Media Capital
Corporation Senior Discount Notes,
Zero %, Due 4/15/08 (Rate Reset
Effective 4/15/03) 3,000,000 2,040,000
Rose Hills Company Senior Subordinated
Notes, 9.50%, Due 11/15/04 175,000 109,375
Russel Metals, Inc./RMI USA LLC Units,
10.00%, Due 6/01/09 500,000 510,000
SF Holdings Group, Inc. Senior Secured
Discount Notes, Zero %, Due 3/15/08
(Rate Reset Effective 3/15/03) 500,000 268,750
Sabreliner Corporation Senior Notes,
11.00%, Due 6/15/08 (d) 2,500,000 2,100,000
Sirius Satellite Radio, Inc. Senior
Secured Notes, 14.50%, Due 5/15/09 2,500,000 2,300,000
Telemundo Holdings, Inc. Senior Discount
Notes, Zero %, Due 8/15/08 (Rate Reset
Effective 8/15/03) 250,000 162,500
Teligent, Inc. Senior Notes, 11.50%,
Due 12/01/07 1,000,000 865,000
Town Sports International, Inc. Senior
Notes, Series B, 9.75%, Due 10/15/04 1,000,000 935,000
Transportation Manufacturing Operations, Inc.
Senior Subordinated Notes, 11.25%,
Due 5/01/09 1,250,000 1,212,500
US Air 1993-A Pass-Thru Trust
Certificates, Series 1993-A2,
9.625%, Due 9/01/03 (c) 1,675,000 1,534,706
United Industries Corporation Senior
Subordinated Notes, Series B, 9.875%,
Due 4/01/09 1,800,000 1,323,000
United International Holdings, Inc.
Senior Secured Discount Notes,
Series B, Zero %, Due 2/15/08
(Rate Reset Effective 2/15/03) 1,500,000 982,500
Venetian Casino Resort LLC/Las Vegas
Sands, Inc. Secured Mortgage Notes,
12.25%, Due 11/15/04 2,000,000 1,960,000
Versatel Telecom International NV Senior
Yankee Notes, 11.875%, Due 7/15/09 1,000,000 985,000
Viatel, Inc. Senior Notes, 11.25%,
Due 4/15/08 2,000,000 1,830,000
Winstar Communications, Inc. Senior
Discount Notes, Zero %, Due 4/15/10
(Rate Reset Effective 4/15/05) (d) 1,924,000 870,610
Winstar Communications, Inc. Senior Notes:
12.50%, Due 4/15/08 (d) 2,000,000 1,930,000
12.75%, Due 4/15/10 (d) 657,000 630,720
Worldwide Fiber, Inc. Senior Yankee Notes,
12.50%, Due 12/15/05 1,000,000 995,000
XM Satellite Radio, Inc. Units, 14.00%,
Due 3/15/10 (d) 2,500,000 2,262,500
--------------------------------------------------------------
Total Corporate Bonds (Cost $75,715,026) 66,627,323
--------------------------------------------------------------
</TABLE>
18
<PAGE>
--------------------------------------------------------------
STRONG ASSET ALLOCATION FUND (continued)
--------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
--------------------------------------------------------------
Non-Agency Mortgage &
Asset-Backed Securities 0.6%
Chase Mortgage Finance Corporation Mortgage
Pass-Thru Certificates, Series 1990-G,
Class A-Z1, 9.50%, Due 12/25/21 $ 190,362 $ 190,362
First Boston Mortgage Securities Corporation
Mortgage Pass-Thru Certificates,
Series 1993-2, Class A-3, 7.50%,
Due 3/25/33 412 411
Ryland Mortgage Securities Corporation III
Variable Rate Collateralized Mortgage Bonds,
Series 1992-C, Class 3-A, 11.7264%,
Due 11/25/30 32,369 32,253
Sutter CBO, Ltd./Sutter CBO Corporation
Notes, Series 1999-1, Class B-2, 13.442%,
Due 11/30/14 (Acquired 10/05/99;
Cost $2,000,000) (d) 2,000,000 1,870,620
--------------------------------------------------------------
Total Non-Agency Mortgage & Asset-Backed
Securities (Cost $2,223,146) 2,093,646
--------------------------------------------------------------
United States Government &
Agency Issues 14.2%
FHLMC Adjustable Rate Mortgage
Participation Certificates, 7.905%,
Due 8/01/25 (c) 1,026,221 1,041,443
FHLMC Guaranteed Pass-Thru Certificates:
9.50%, Due 1/01/06 36,755 37,897
10.25%, Due 3/01/15 101,062 106,508
10.50%, Due 1/01/16 12,582 13,453
FNMA Guaranteed Real Estate Mortgage
Investment Conduit Variable Rate
Pass-Thru Certificates, Series G92-61,
Class FJ, 6.067%, Due 10/25/22 464,907 455,134
GNMA Guaranteed Pass-Thru Certificates,
7.50%, Due 12/15/07 (c) 1,050,981 1,042,817
United States Treasury Notes:
5.50%, Due 7/31/01 4,745,000 4,682,722
5.75%, Due 4/30/03 1,500,000 1,465,313
5.875%, Due 11/15/04 21,220,000 20,669,617
6.125%, Due 8/15/07 (c) 3,950,000 3,868,531
6.50%, Due 10/15/06 thru 2/15/10 (c) 16,415,000 16,476,860
--------------------------------------------------------------
Total United States Government & Agency
Issues (Cost $49,801,778) 49,860,295
--------------------------------------------------------------
Short-Term Investments (a) 2.0%
Commercial Paper 0.8%
Interest Bearing, Due Upon Demand
Sara Lee Corporation, 5.76% 370,100 370,100
Warner Lambert Company, 5.76% 1,823,000 1,823,000
Wisconsin Electric Power Company, 5.76% 699,100 699,100
------------
2,892,200
Repurchase Agreements 0.9%
ABN-AMRO Inc. (Dated 4/28/00), 5.78%,
Due 5/01/00 (Repurchase proceeds
$3,301,590); Collateralized by:
U.S. Government & Agency
Issues (e) 3,300,000 3,300,000
United States Government & Agency Issues 0.3%
FNMA Guaranteed Real Estate Mortgage
Investment Conduit Pass-Thru Certificates,
11.00%, Due 10/01/00 thru 11/01/00 8,433 8,518
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
--------------------------------------------------------------
United States Treasury Bills,
Due 5/04/00 thru 7/20/00 (c) $ 885,000 $ 884,226
------------
892,744
--------------------------------------------------------------
Total Short-Term Investments (Cost $7,084,844) 7,084,944
--------------------------------------------------------------
--------------------------------------------------------------
Total Investments in Securities
(Cost $262,578,192) 99.4% 349,242,178
Other Assets and Liabilities, Net 0.6% 2,103,824
--------------------------------------------------------------
Net Assets 100.0% $351,346,002
==============================================================
FUTURES
<CAPTION>
------------------------------------------------------------------
Underlying
Expiration Face Amount Unrealized
Date at Value Depreciation
<S> <C> <C> <C>
------------------------------------------------------------------
Purchased:
20 Two-Year U.S. Treasury Notes 6/00 $ 3,944,688 $ 9,773
Sold:
18 Five-Year U.S. Treasury Notes 6/00 1,756,406 17,373
19 Ten-Year U.S. Treasury Notes 6/00 1,842,109 48,768
35 S&P 500 Index 6/00 12,775,000 287,438
WRITTEN OPTIONS ACTIVITY
<CAPTION>
----------------------------------------------------------------
Contracts Premiums
<S> <C> <C>
----------------------------------------------------------------
Options outstanding at beginning of period -- $
Options written during the period 500 78,185
Options closed (500) (78,185)
Options expired -- --
Options exercised -- --
----- --------
Options outstanding at end of period -- $ --
===== ========
Closed options resulted in a capital gain of $31,560.
</TABLE>
--------------------------------------------------------------
STRONG EQUITY INCOME FUND
--------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
--------------------------------------------------------------
Common Stocks 93.3%
Aerospace & Defense 2.2%
The Boeing Company 39,000 $1,547,812
United Technologies Corporation 57,000 3,544,688
----------
5,092,500
Automobile 0.5%
Ford Motor Company 19,200 1,050,000
Bank - Money Center 3.6%
The Chase Manhattan Corporation 37,500 2,702,344
Citigroup, Inc. 93,948 5,584,034
----------
8,286,378
Bank - Super Regional 2.4%
The Bank of New York Company, Inc. 64,000 2,628,000
Comerica, Inc. 18,700 792,412
FleetBoston Financial Corporation 62,000 2,197,125
----------
5,617,537
Beverage - Alcoholic 1.8%
Anheuser-Busch Companies, Inc. 58,400 4,120,850
Beverage - Soft Drink 0.6%
The Coca-Cola Company 14,500 682,406
PepsiCo, Inc. 19,000 697,063
----------
1,379,469
</TABLE>
19
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) April 30, 2000 (Unaudited)
-------------------------------------------------------------------------------
STRONG EQUITY INCOME FUND (continued)
--------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
--------------------------------------------------------------
Brokerage & Investment Management 0.3%
Morgan Stanley, Dean Witter & Company 9,000 $ 690,750
Commercial Service 1.1%
The Interpublic Group of Companies, Inc. 61,800 2,533,800
Computer - Manufacturers 2.5%
Compaq Computer Corporation 27,000 789,750
Hewlett-Packard Company 17,000 2,295,000
International Business Machines
Corporation 16,500 1,841,812
Sun Microsystems, Inc. (b) 9,000 827,438
-----------
5,754,000
Computer Service 1.9%
Computer Sciences Corporation (b) 21,300 1,737,281
Electronic Data Systems Corporation 39,200 2,695,000
-----------
4,432,281
Computer Software 4.3%
Cisco Systems, Inc. (b) 71,000 4,922,297
Oracle Systems Corporation (b) 63,500 5,076,031
-----------
9,998,328
Cosmetic & Personal Care 0.9%
Estee Lauder Companies, Inc. Class A 11,400 503,025
The Gillette Company 45,000 1,665,000
-----------
2,168,025
Diversified Operations 2.5%
E.I. Du Pont de Nemours & Company 21,200 1,005,675
Honeywell International, Inc. 32,500 1,820,000
Textron, Inc. 18,000 1,114,875
Tyco International, Ltd. 37,800 1,736,438
-----------
5,676,988
Electric Power 2.5%
Duke Energy Corporation 62,000 3,565,000
PECO Energy Company 14,900 621,144
Texas Utilities Company 22,500 757,969
UNICOM Corporation 20,200 802,950
-----------
5,747,063
Electrical Equipment 4.6%
Emerson Electric Company 17,000 932,875
General Electric Company 61,500 9,670,875
-----------
10,603,750
Electronics - Semiconductor Equipment 0.4%
Applied Materials, Inc. (b) 8,400 855,225
Electronics - Semiconductor Manufacturing 10.6%
Intel Corporation 68,000 8,623,250
LSI Logic Corporation (b) 74,600 4,662,500
STMicroelectronics NV 23,500 4,457,656
Texas Instruments, Inc. 21,500 3,501,813
Xilinx, Inc. (b) 43,500 3,186,375
-----------
24,431,594
Finance - Miscellaneous 1.1%
American Express Company 12,100 1,815,756
First Data Corporation 16,000 779,000
-----------
2,594,756
Food 1.0%
Quaker Oats Company 34,000 2,216,375
Healthcare - Drug/Diversified 5.7%
Johnson & Johnson 24,500 2,021,250
Eli Lilly & Company 7,000 541,187
Merck & Company, Inc. 47,500 3,301,250
Pharmacia Corporation 11,900 594,256
Schering-Plough Corporation 55,000 2,217,188
Warner-Lambert Company 40,700 4,632,169
-----------
13,307,300
Housing Related 0.3%
Masco Corporation 32,200 722,487
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
--------------------------------------------------------------
Insurance - Diversified 0.6%
Marsh & McLennan Companies, Inc. 14,850 $ 1,463,653
Insurance - Property & Casualty 2.0%
American International Group, Inc. 42,296 4,639,342
Machinery - Agriculture 0.9%
Deere & Company 53,000 2,139,875
Machinery - Construction & Mining 0.6%
Caterpillar, Inc. 34,000 1,340,875
Machinery - Miscellaneous 0.2%
Ingersoll-Rand Company 12,000 563,250
Media - Cable TV 2.5%
AT&T Corporation - Liberty Media Group
Class A (b) 53,000 2,646,687
Time Warner, Inc. 36,000 3,237,750
-----------
5,884,437
Media - Publishing 1.3%
Gannett Company, Inc. 17,000 1,085,875
McGraw-Hill, Inc. 36,600 1,921,500
-----------
3,007,375
Media - Radio/TV 1.2%
CBS Corporation (b) 48,000 2,820,000
Metal Products & Fabrication 0.6%
Illinois Tool Works, Inc. 21,500 1,377,344
Metals & Mining 0.7%
Alcoa, Inc. 24,000 1,557,000
Mortgage & Related Service 1.9%
Federal Home Loan Mortgage Corporation 58,000 2,664,375
Federal National Mortgage Association 30,000 1,809,375
-----------
4,473,750
Natural Gas Distribution 0.9%
Enron Corporation 31,000 2,160,312
Office Automation 0.2%
Xerox Corporation 19,000 502,313
Oil - International Integrated 5.8%
BP Amoco PLC Sponsored ADR 6,200 316,200
Chevron Corporation 20,600 1,753,575
Exxon Mobil Corporation 101,138 7,857,158
Royal Dutch Petroleum Company -
New York Registry Shares 50,000 2,868,750
Texaco, Inc. 12,100 598,950
-----------
13,394,633
Oil - North American Integrated 0.1%
USX-Marathon Group 13,500 314,719
Oil Well Equipment & Service 0.5%
Halliburton Company 11,300 499,319
Schlumberger, Ltd. 8,500 650,781
-----------
1,150,100
Paper & Forest Products 1.4%
International Paper Company 43,000 1,580,250
The Mead Corporation 26,800 932,975
Temple-Inland, Inc. 12,000 601,500
-----------
3,114,725
Retail - Drug Store 0.9%
Walgreen Company 72,000 2,025,000
Retail - Food Chain 0.3%
Safeway, Inc. (b) 18,000 794,250
</TABLE>
20
<PAGE>
--------------------------------------------------------------
STRONG EQUITY INCOME FUND (continued)
--------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
--------------------------------------------------------------
Retail - Major Chain 3.4%
Target Corporation 34,500 $ 2,296,406
Wal-Mart Stores, Inc. 102,400 5,670,400
-----------
7,966,806
Retail - Restaurant 0.5%
McDonald's Corporation 27,000 1,029,375
Retail - Specialty 3.6%
Gap, Inc. 26,325 967,444
The Home Depot, Inc. 76,650 4,297,191
Lowe's Companies, Inc. 45,300 2,242,350
Tandy Corporation 16,000 912,000
-----------
8,418,985
Soap & Cleaning Preparation 0.6%
Clorox Company 35,000 1,286,250
Telecommunication Equipment 3.4%
Motorola, Inc. 28,000 3,333,750
Nokia Corporation Sponsored ADR 36,000 2,047,500
Nortel Networks Corporation 22,500 2,548,125
-----------
7,929,375
Telecommunications - Services 6.9%
AT&T Corporation 72,450 3,382,509
Bell Atlantic Corporation 36,500 2,162,625
Corning, Inc. 14,266 2,817,535
MCI WorldCom, Inc. (b) 88,872 4,038,122
Sprint Corporation 57,800 3,554,700
-----------
15,955,491
Telephone 1.5%
BellSouth Corporation 24,000 1,168,500
SBC Communications, Inc. 52,449 2,297,922
-----------
3,466,422
--------------------------------------------------------------
Total Common Stocks (Cost $147,193,094) 216,055,113
--------------------------------------------------------------
Convertible Preferred Stocks 2.4%
Houston Industries, Inc. 7.00% Automatic
Common Exchange Securities 30,000 4,441,875
The Seagram Company, Ltd. 7.50% 24,100 1,226,088
--------------------------------------------------------------
Total Convertible Preferred Stocks
(Cost $2,586,137) 5,667,963
--------------------------------------------------------------
Convertible Bonds 0.2%
Loews Corporation Exchangeable Subordinated
Notes, 3.125%, Due 9/15/07 $ 500,000 439,062
--------------------------------------------------------------
Total Convertible Bonds (Cost $500,000) 439,062
--------------------------------------------------------------
Short-Term Investments (a) 4.6%
Commercial Paper 0.5%
Interest Bearing, Due Upon Demand
Sara Lee Corporation, 5.76% 62,100 62,100
Warner Lambert Company, 5.76% 625,400 625,400
Wisconsin Electric Power Company, 5.76% 593,300 593,300
-----------
1,280,800
Repurchase Agreements 4.1%
ABN-AMRO Inc. (Dated 4/28/00), 5.78%,
Due 5/01/00 (Repurchase proceeds $9,404,528);
Collateralized by: U.S. Government &
Agency Issues (e) 9,400,000 9,400,000
--------------------------------------------------------------
Total Short-Term Investments (Cost $10,680,800) 10,680,800
--------------------------------------------------------------
--------------------------------------------------------------
Total Investments in Securities
(Cost $160,960,031) 100.5% 232,842,938
Other Assets and Liabilities, Net (0.5%) (1,230,285)
--------------------------------------------------------------
Net Assets 100.0% $231,612,653
==============================================================
<CAPTION>
--------------------------------------------------------------
<S>
--------------------------------------------------------------
WRITTEN OPTIONS ACTIVITY
--------------------------------------------------------------
Contracts Premiums
--------------------------------------------------------------
Options outstanding at beginning of period -- $ --
Options written during the period 400 62,548
Options closed (400) (62,548)
Options expired -- --
Options exercised -- --
----- --------
Options outstanding at end of period -- $ --
===== ========
Closed options resulted in a capital gain of $25,248.
--------------------------------------------------------------
STRONG LIMITED RESOURCES FUND
--------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
--------------------------------------------------------------
Common Stocks 98.6%
Chemical 1.7%
The Dow Chemical Company 1,000 $ 113,000
Chemical - Specialty 6.3%
Cabot Corporation 7,000 189,000
OM Group, Inc. 2,500 115,000
Praxair, Inc. 2,500 111,094
-----------
415,094
Diversified Operations 3.3%
E.I. Du Pont de Nemours & Company 3,500 166,031
Syntroleum Corporation (b) 2,500 49,063
-----------
215,094
Metals & Mining 3.1%
Alcoa, Inc. 2,100 136,237
Phelps Dodge Corporation 1,500 69,375
-----------
205,612
Natural Gas Distribution 16.7%
Coastal Corporation 5,000 250,938
El Paso Energy Corporation 3,500 148,750
Enron Corporation 2,700 188,156
Equitable Resources, Inc. 4,000 185,500
Questar Corporation 9,000 169,313
Western Gas Resources, Inc. 10,000 166,875
-----------
1,109,532
Oil - International Integrated 9.8%
Chevron Corporation 2,400 204,300
Exxon Mobil Corporation 2,640 205,095
Royal Dutch Petroleum Company - New York
Registry Shares 4,200 240,975
-----------
650,370
Oil - North American Exploration & Production 20.0%
Anadarko Petroleum Corporation 6,500 282,344
Apache Corporation 4,500 217,969
Devon Energy Corporation 3,000 144,562
EOG Resources, Inc. 8,000 199,000
Gulf Canada Resources, Ltd. ADR (b) 52,000 214,500
Harken Energy Corporation (b) 60,000 41,250
McMoRan Exploration Company (b) 3,500 46,375
Ocean Energy, Inc. (b) 14,000 181,125
-----------
1,327,125
Oil - North American Integrated 10.5%
Amerada Hess Corporation 3,500 222,687
Tosco Corporation 4,000 128,250
Transmontaigne, Inc. (b) 12,000 93,750
Unocal Corporation 3,000 96,937
USX-Marathon Group 6,500 151,531
-----------
693,155
Oil Well Equipment & Service 20.8%
Cooper Cameron Corporation (b) 3,000 225,000
ENSCO International, Inc. 5,200 172,576
Grant Prideco, Inc. (b) 4,500 86,625
</TABLE>
21
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) April 30, 2000 (Unaudited)
-------------------------------------------------------------------------------
--------------------------------------------------------------
STRONG LIMITED RESOURCES FUND (continued)
--------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
---------------------------------------------------------------
Halliburton Company 2,200 $ 97,212
Nabors Industries, Inc. (b) 4,500 177,469
National-Oilwell, Inc. (b) 2,000 47,875
Schlumberger, Ltd. 2,100 160,782
Smith International, Inc. (b) 2,400 182,400
Transocean Sedco Forex, Inc. 3,606 169,482
Weatherford International, Inc. (b) 1,500 60,937
----------
1,380,358
Paper & Forest Products 5.6%
Kimberly-Clark Corporation 1,500 87,093
The Mead Corporation 2,500 87,031
Willamette Industries, Inc. 5,200 198,575
----------
372,699
Steel 0.8%
USX-US Steel Group 2,000 50,125
--------------------------------------------------------------
Total Common Stocks (Cost $5,441,542) 6,532,164
--------------------------------------------------------------
Short-Term Investments (a) 1.4%
Commercial Paper
Interest Bearing, Due Upon Demand
Warner Lambert Company, 5.76% $ 92,100 92,100
--------------------------------------------------------------
Total Short-Term Investments (Cost $92,100) 92,100
--------------------------------------------------------------
--------------------------------------------------------------
Total Investments in Securities
(Cost $5,533,642) 100.0% 6,624,264
Other Assets and Liabilities, Net 0.0% 744
--------------------------------------------------------------
Net Assets 100.0% $6,625,008
==============================================================
</TABLE>
--------------------------------------------------------------
STRONG TOTAL RETURN FUND
--------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
---------------------------------------------------------------
Common Stocks 91.5%
Aerospace & Defense 0.6%
General Dynamics Corporation 80,000 $ 4,680,000
Northrop Grumman Corporation 50,000 3,543,750
United Technologies Corporation 50,000 3,109,375
------------
11,333,125
Automobile 1.5%
Ford Motor Company 100,000 5,468,750
General Motors Corporation 235,000 22,001,875
------------
27,470,625
Bank - Money Center 3.2%
Bank of America Corporation 265,000 12,985,000
The Chase Manhattan Corporation 100,000 7,206,250
Citigroup, Inc. 625,000 37,148,437
------------
57,339,687
Bank - Super Regional 1.8%
The Bank of New York Company, Inc. 150,000 6,159,375
Northern Trust Company 275,000 17,634,375
Wells Fargo Company 220,000 9,033,750
------------
32,827,500
Beverage - Alcoholic 0.6%
Anheuser-Busch Companies, Inc. 150,000 10,584,375
Brokerage & Investment Management 2.8%
The Charles Schwab Corporation 450,000 20,025,000
The Goldman Sachs Group, Inc. 70,000 6,527,500
Merrill Lynch & Company, Inc. 90,000 9,174,375
Morgan Stanley, Dean Witter & Company 190,000 14,582,500
------------
50,309,375
Commercial Service 0.7%
Paychex, Inc. 250,000 13,156,250
Computer - Manufacturers 2.4%
Dell Computer Corporation (b) 50,000 2,506,250
Sun Microsystems, Inc. (b) 430,000 39,533,125
-----------
42,039,375
--------------------------------------------------------------
STRONG TOTAL RETURN FUND (continued)
--------------------------------------------------------------
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
---------------------------------------------------------------
Computer - Peripheral Equipment 2.8%
EMC Communications Corporation (b) 355,000 $ 49,322,813
Computer Service 0.5%
Amdocs, Ltd. (b) 140,000 9,476,250
Computer Software 9.4%
BroadVision, Inc. (b) 93,000 4,086,188
Brocade Communications Systems, Inc. (b) 25,000 3,100,000
Cisco Systems, Inc. (b) 1,470,000 101,912,344
Oracle Systems Corporation (b) 410,000 32,774,375
Veritas Software Corporation (b) 240,000 25,743,750
------------
167,616,657
Diversified Operations 3.5%
Fortune Brands, Inc. 100,000 2,500,000
Honeywell International, Inc. 350,000 19,600,000
Pharmacia Corporation 285,000 14,232,188
Textron, Inc. 100,000 6,193,750
Tyco International, Ltd. 415,000 19,064,063
------------
61,590,001
Electrical Equipment 4.9%
General Electric Company 550,000 86,487,500
Electronic Instrumentation 0.3%
PE Corporation-PE Biosystems Group 77,300 4,638,000
Electronics - Semiconductor Equipment 2.1%
Applied Materials, Inc. (b) 305,000 31,052,812
Teradyne, Inc. (b) 50,000 5,500,000
------------
36,552,812
Electronics - Semiconductor Manufacturing 11.8%
Advanced Micro Devices, Inc. (b) 45,000 3,948,750
Applied Micro Circuits Corporation (b) 80,000 10,310,000
Atmel Corporation (b) 195,000 9,542,812
Broadcom Corporation (b) 175,000 30,165,625
Intel Corporation 375,000 47,554,687
Micron Technology, Inc. (b) 120,000 16,710,000
National Semiconductor Corporation (b) 80,000 4,860,000
PMC-Sierra, Inc. (b) 150,000 28,781,250
SDL, Inc. (b) 250,000 48,750,000
Texas Instruments, Inc. 55,000 8,958,125
Xilinx, Inc. (b) 20,000 1,465,000
------------
211,046,249
Finance - Miscellaneous 0.8%
American Express Company 100,000 15,006,250
Food 0.2%
General Mills, Inc. 115,000 4,183,125
Healthcare - Biomedical/Genetic 0.5%
Amgen, Inc. (b) 175,000 9,800,000
Healthcare - Drug/Diversified 5.5%
American Home Products Corporation 325,000 18,260,937
Eli Lilly & Company 110,000 8,504,375
Merck & Company, Inc. 200,000 13,900,000
Pfizer, Inc. 710,000 29,908,750
Schering-Plough Corporation 75,000 3,023,437
Warner-Lambert Company 220,000 25,038,750
------------
98,636,249
Healthcare - Instrumentation 1.3%
Medtronic, Inc. 460,000 23,891,250
Healthcare - Medical Supply 0.2%
Cardinal Health, Inc. 50,000 2,753,125
Insurance - Property & Casualty 0.3%
American International Group, Inc. 50,000 5,484,375
</TABLE>
22
<PAGE>
--------------------------------------------------------------
STRONG TOTAL RETURN FUND (continued)
--------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
--------------------------------------------------------------
Internet - Internet Service Provider/Content 0.5%
America Online, Inc. (b) 150,000 $ 8,971,875
Internet - Network Security/Solutions 3.7%
Exodus Communications, Inc. (b) 50,000 4,421,875
Juniper Networks, Inc. (b) 260,000 55,298,750
VeriSign, Inc. (b) 50,000 6,968,750
------------
66,689,375
Internet - Software 0.3%
Vignette Corporation (b) 110,000 5,300,625
Leisure Product 0.5%
Harley-Davidson, Inc. 220,000 8,758,750
Leisure Service 0.9%
The Walt Disney Company 380,000 16,458,750
Machinery - Miscellaneous 0.2%
Dover Corporation 75,000 3,810,938
Media - Cable TV 0.9%
AT&T Corporation - Liberty Media Group
Class A (b) 105,000 5,243,437
Time Warner, Inc. 110,000 9,893,125
------------
15,136,562
Media - Radio/TV 0.4%
CBS Corporation (b) 50,000 2,937,500
Clear Channel Communications, Inc. (b) 45,000 3,240,000
Viacom International, Inc. Class B (b) 25,000 1,359,375
------------
7,536,875
Mortgage & Related Service 0.3%
Federal Home Loan Mortgage Corporation 50,000 2,296,875
Federal National Mortgage Association 40,000 2,412,500
------------
4,709,375
Natural Gas Distribution 2.8%
Coastal Corporation 150,000 7,528,125
Enron Corporation 520,000 36,237,500
The Williams Companies, Inc. 150,000 5,596,875
------------
49,362,500
Office Automation 0.5%
Xerox Corporation 300,000 7,931,250
Oil - International Integrated 0.6%
Chevron Corporation 130,000 11,066,250
Oil - North American Exploration & Production 0.6%
Anadarko Petroleum Corporation 200,000 8,687,500
Apache Corporation 50,000 2,421,875
------------
11,109,375
Oil - North American Integrated 0.1%
Valero Energy Corporation 50,000 1,450,000
Oil Well Equipment & Service 1.2%
Schlumberger, Ltd. 240,000 18,375,000
Transocean Sedco Forex, Inc. 80,000 3,760,000
------------
22,135,000
Personal & Commercial Lending 0.7%
Household International, Inc. 300,000 12,525,000
Retail - Department Store 1.8%
Kohl's Corporation (b) 670,000 32,160,000
Retail - Drug Store 0.3%
Walgreen Company 175,000 4,921,875
Retail - Food Chain 0.8%
Safeway, Inc. (b) 325,000 14,340,625
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
--------------------------------------------------------------
Retail - Major Chain 3.4%
Costco Wholesale Corporation (b) 350,000 $ 18,921,875
Wal-Mart Stores, Inc. 770,000 42,638,750
------------
61,560,625
Retail - Specialty 3.3%
Best Buy Company, Inc. (b) 275,000 22,206,250
The Home Depot, Inc. 480,000 26,910,000
Lowe's Companies, Inc. 205,000 10,147,500
------------
59,263,750
Telecommunication Equipment 7.6%
Comverse Technology, Inc. (b) 25,000 2,229,688
E-Tek Dynamics, Inc. (b) 25,000 5,118,750
JDS Uniphase Corporation (b) (g) 505,000 52,362,187
Lucent Technologies, Inc. 25,000 1,554,687
Nokia Corporation Sponsored ADR 870,000 49,481,250
Nortel Networks Corporation 225,000 25,481,250
------------
136,227,812
Telecommunications - Cellular 0.9%
Sprint Corporation - PCS Group (b) 280,000 15,400,000
Telecommunications - Services 1.2%
Corning, Inc. 60,000 11,850,000
Nextel Communications, Inc. Class A (b) 40,000 4,377,500
Sprint Corporation 70,000 4,305,000
------------
20,532,500
Telephone 0.3%
BellSouth Corporation 100,000 4,868,750
--------------------------------------------------------------
Total Common Stocks (Cost $1,222,348,878) 1,633,773,405
--------------------------------------------------------------
Convertible Bonds 2.1%
American Tower Corporation Notes, 5.00%,
Due 2/15/10 (d) $ 2,000,000 2,090,000
Exodus Communications, Inc. Subordinated
Notes, 5.00%, Due 3/15/06 2,000,000 15,492,500
Juniper Networks, Inc. Subordinated Notes,
4.75%, Due 3/15/07 3,000,000 2,748,750
Redback Networks, Inc. Subordinated Notes,
5.00%, Due 4/01/07 (d) 3,500,000 2,480,625
Veritas Software Corporation/Veritas Operating
Corporation Subordinated Notes, 1.856%,
Due 8/13/06 5,000,000 15,081,250
--------------------------------------------------------------
Total Convertible Bonds (Cost $18,038,414) 37,893,125
--------------------------------------------------------------
Short-Term Investments (a) 8.0%
Commercial Paper 0.4%
Interest Bearing, Due Upon Demand
Sara Lee Corporation, 5.76% 1,927,600 1,927,600
Warner Lambert Company, 5.76% 3,163,600 3,163,600
Wisconsin Electric Power Company, 5.76% 1,289,000 1,289,000
------------
6,380,200
Repurchase Agreements 7.4%
ABN-AMRO Inc. (Dated 4/28/00), 5.78%,
Due 5/01/00 (Repurchase proceeds
$132,463,773); Collateralized by:
U.S. Government & Agency Issues (e) 132,400,000 132,400,000
United States Government Issues 0.2%
United States Treasury Bills,
Due 6/01/00 thru 7/13/00 4,000,000 3,973,609
--------------------------------------------------------------
Total Short-Term Investments (Cost $142,752,880) 142,753,809
--------------------------------------------------------------
--------------------------------------------------------------
Total Investments in Securities
(Cost $1,383,140,172) 101.6% 1,814,420,339
Other Assets and Liabilities, Net (1.6%) (29,204,116)
==============================================================
Net Assets 100.0% $1,785,216,223
==============================================================
</TABLE>
23
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) April 30, 2000 (Unaudited)
-------------------------------------------------------------------------------
--------------------------------------------------------------
STRONG TOTAL RETURN FUND (continued)
--------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------
WRITTEN OPTIONS ACTIVITY
---------------------------------------------------------------
Contracts Premiums
<S> <C> <C>
--------------------------------------------------------------
Options outstanding at
beginning of period 8,930 $ 8,448,207
Options written during the period 29,610 77,174,414
Options closed (38,081) (84,964,934)
Options expired -- --
Options exercised (9) (15,932)
--------- ------------
Options outstanding at end of period 450 $ 641,755
========= ============
Closed options resulted in a capital loss of $10,259,255.
---------------------------------------------------------------
WRITTEN OPTIONS DETAIL
---------------------------------------------------------------
<CAPTION>
Contracts
(100 shares Value
per contract) (Note 2)
<S> <C> <C>
---------------------------------------------------------------
JDS Uniphase Corporation
(Strike Price is $75. Expiration
Date is 5/19/00. Premium Received
is $641,755.) 450 ($1,324,800)
</TABLE>
------------------------------------------------------------------------------
STRONG BLUE CHIP 100 FUND
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
---------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
---------------------------------------------------------------
Common Stocks 99.6%
Aerospace & Defense 0.2%
The Boeing Company 27,800 $ 1,103,312
Airline 0.4%
United Parcel Service, Inc. Class B 38,800 2,580,200
Automobile 0.7%
Ford Motor Company 38,600 2,110,937
General Motors Corporation 20,400 1,909,950
------------
4,020,887
Bank - Money Center 4.1%
Bank of America Corporation 54,618 2,676,282
The Chase Manhattan Corporation 26,400 1,902,450
Citigroup, Inc. 344,650 20,485,134
------------
25,063,866
Bank - Super Regional 0.7%
Bank One Corporation 36,540 1,114,470
First Union Corporation 31,600 1,007,250
Wells Fargo Company 52,800 2,168,100
------------
4,289,820
Beverage - Alcoholic 0.2%
Anheuser-Busch Companies, Inc. 15,000 1,058,437
Beverage - Soft Drink 0.9%
The Coca-Cola Company 78,900 3,713,231
PepsiCo, Inc. 46,500 1,705,969
------------
5,419,200
Brokerage & Investment Management 2.7%
The Charles Schwab Corporation 251,200 11,178,400
The Goldman Sachs Group, Inc. 14,200 1,324,150
Merrill Lynch & Company, Inc. 11,800 1,202,862
Morgan Stanley, Dean Witter & Company 36,400 2,793,700
------------
16,499,112
Computer - Manufacturers 7.6%
Compaq Computer Corporation 54,100 1,582,425
Dell Computer Corporation (b) 182,000 9,122,750
Hewlett-Packard Company 32,200 4,347,000
International Business
Machines Corporation 57,500 6,418,437
Sun Microsystems, Inc. (b) 266,200 24,473,762
------------
45,944,374
---------------------------------------------------------------
STRONG BLUE CHIP 100 FUND (continued)
---------------------------------------------------------------
<CAPTION>
---------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
---------------------------------------------------------------
Computer - Peripheral Equipment 2.9%
EMC Communications Corporation (b) 127,500 $ 17,714,531
Computer Service 0.3%
Automatic Data Processing, Inc. 20,200 1,087,013
Electronic Data Systems Corporation 15,000 1,031,250
------------
2,118,263
Computer Software 14.2%
Cisco Systems, Inc. (b) 218,800 15,168,994
Computer Associates International, Inc. 18,800 1,049,275
Microsoft Corporation (b) 245,300 17,109,675
Oracle Systems Corporation (b) 355,200 28,393,800
Veritas Software Corporation (b) 227,400 24,392,203
------------
86,113,947
Cosmetic & Personal Care 0.2%
The Gillette Company 34,400 1,272,800
Diversified Operations 1.3%
Agilent Technologies, Inc. (b) 14,500 1,285,062
E.I. Du Pont de Nemours & Company 33,400 1,584,413
Honeywell International, Inc. 25,400 1,422,400
Minnesota Mining & Manufacturing Company 12,800 1,107,200
Tyco International, Ltd. 54,000 2,480,625
------------
7,879,700
Electrical Equipment 4.7%
General Electric Company 179,925 28,293,206
Electronics - Semiconductor Equipment 5.0%
Applied Materials, Inc. (b) 299,400 30,482,662
Electronics - Semiconductor Manufacturing 10.2%
Intel Corporation 146,700 18,603,394
Micron Technology, Inc. (b) 145,600 20,274,800
Texas Instruments, Inc. 141,700 23,079,387
------------
61,957,581
Finance - Miscellaneous 0.3%
American Express Company 14,200 2,130,887
Healthcare - Biomedical/Genetic 0.5%
Amgen, Inc. (b) 32,600 1,825,600
Genentech, Inc. (b) 8,300 971,100
------------
2,796,700
Healthcare - Drug/Diversified 5.2%
Abbott Laboratories 49,200 1,891,125
American Home Products Corporation 41,800 2,348,638
Bristol-Myers Squibb Company 63,400 3,324,538
Johnson & Johnson 44,400 3,663,000
Eli Lilly & Company 34,800 2,690,475
Merck & Company, Inc. 74,800 5,198,600
Pfizer, Inc. 123,800 5,215,075
Pharmacia Corporation 39,916 1,993,305
Schering-Plough Corporation 47,100 1,898,719
Warner-Lambert Company 27,400 3,118,462
------------
31,341,937
Healthcare - Instrumentation 0.3%
Medtronic, Inc. 38,200 1,984,013
Insurance - Property & Casualty 0.9%
American International Group, Inc. 49,575 5,437,758
Internet - E*Commerce 0.1%
Internet Capital Group, Inc. (b) 8,400 355,950
Internet - Internet Service Provider/Content 1.9%
America Online, Inc. (b) 152,700 9,133,369
Yahoo! Inc. (b) 16,800 2,188,200
------------
11,321,569
Internet - Network Security/Solutions 1.2%
Juniper Networks, Inc. (b) 35,000 7,444,063
</TABLE>
24
<PAGE>
---------------------------------------------------------------
STRONG BLUE CHIP 100 FUND (continued)
---------------------------------------------------------------
<TABLE>
<CAPTION>
---------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
---------------------------------------------------------------
Leisure Service 0.5%
The Walt Disney Company 66,400 $ 2,875,950
Media - Cable TV 4.3%
AT&T Corporation-Liberty Media Group
Class A (b) 181,000 9,038,688
Comcast Corporation Class A (b) 29,600 1,185,850
Time Warner, Inc. 177,600 15,972,900
------------
26,197,438
Media - Radio/TV 0.2%
CBS Corporation (b) 24,400 1,433,500
Mortgage & Related Service 0.5%
Federal Home Loan Mortgage Corporation 22,300 1,024,406
Federal National Mortgage Association 32,700 1,972,219
------------
2,996,625
Natural Gas Distribution 0.3%
Enron Corporation 22,800 1,588,875
Oil - International Integrated 1.8%
Chevron Corporation 21,000 1,787,625
Exxon Mobil Corporation 110,455 8,580,973
Texaco, Inc. 17,600 871,200
------------
11,239,798
Oil Well Equipment & Service 3.2%
Schlumberger, Ltd. 253,200 19,385,625
Paper & Forest Products 0.2%
Kimberly-Clark Corporation 17,800 1,033,513
Retail - Drug Store 0.2%
Walgreen Company 32,200 905,625
Retail - Major Chain 2.9%
Wal-Mart Stores, Inc. 319,300 17,681,238
Retail - Restaurant 0.3%
McDonald's Corporation 43,200 1,647,000
Retail - Specialty 0.8%
Gap, Inc. 27,200 999,600
The Home Depot, Inc. 73,600 4,126,200
------------
5,125,800
Soap & Cleaning Preparation 0.6%
Colgate Palmolive Company 18,800 1,073,950
The Procter & Gamble Company 42,000 2,504,250
------------
3,578,200
Telecommunication Equipment 7.5%
JDS Uniphase Corporation (b) 133,600 13,852,650
Lucent Technologies, Inc. 101,700 6,324,469
Motorola, Inc. 22,700 2,702,719
Nortel Networks Corporation 117,900 13,352,175
Qualcomm, Inc. (b) 83,600 9,065,375
------------
45,297,388
Telecommunications - Cellular 1.0%
Sprint Corporation - PCS Group (b) 107,600 5,918,000
Telecommunications - Services 6.5%
AT&T Corporation 102,128 4,768,101
Bell Atlantic Corporation 49,700 2,944,725
Corning, Inc. 18,800 3,713,000
Level 3 Communications, Inc. (b) 11,600 1,032,400
MCI WorldCom, Inc. (b) 90,755 4,123,681
MediaOne Group, Inc. (b) 19,600 1,482,250
Nextel Communications, Inc. Class A (b) 111,800 12,235,112
Qwest Communications International, Inc. (b)24,000 1,041,000
Sprint Corporation 133,000 8,179,500
------------
39,519,769
<CAPTION>
---------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
---------------------------------------------------------------
Telephone 1.8%
BellSouth Corporation 60,200 $ 2,930,987
GTE Corporation 31,000 2,100,250
SBC Communications, Inc. 108,728 4,763,646
US WEST, Inc. 16,200 1,153,238
------------
10,948,121
Tobacco 0.3%
Philip Morris Companies, Inc. 75,600 1,653,750
---------------------------------------------------------------
Total Common Stocks (Cost $460,981,005) 603,650,990
---------------------------------------------------------------
Short-Term Investments (a) 1.7%
Commercial Paper 0.5%
Interest Bearing, Due Upon Demand
Sara Lee Corporation, 5.76% $1,091,600 1,091,600
Warner Lambert Company, 5.76% 1,255,800 1,255,800
Wisconsin Electric Power Company, 5.76% 776,100 776,100
------------
3,123,500
Repurchase Agreements 1.2%
ABN-AMRO Inc. (Dated 4/28/00), 5.78%,
Due 5/01/00 (Repurchase proceeds $7,203,468);
Collateralized by: U.S. Government &
Agency Issues (e) 7,200,000 7,200,000
---------------------------------------------------------------
Total Short-Term Investments (Cost $10,323,500) 10,323,500
---------------------------------------------------------------
---------------------------------------------------------------
Total Investments in Securities
(Cost $471,304,505) 101.3% 613,974,490
Other Assets and Liabilities, Net (1.3%) (7,615,635)
---------------------------------------------------------------
Net Assets 100.0% $ 606,358,855
===============================================================
</TABLE>
------------------------------------------------------------------------------
STRONG GROWTH & INCOME FUND
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
--------------------------------------------------------------
Common Stocks 98.3%
Aerospace & Defense 2.0%
The Boeing Company 194,000 $ 7,699,375
United Technologies Corporation 244,000 15,173,750
------------
22,873,125
Bank - Money Center 3.3%
The Chase Manhattan Corporation 113,000 8,143,062
Citigroup, Inc. 508,000 30,194,250
------------
38,337,312
Bank - Super Regional 1.0%
The Bank of New York Company, Inc. 275,000 11,292,188
Beverage - Alcoholic 1.1%
Anheuser-Busch Companies, Inc. 183,000 12,912,938
Beverage - Soft Drink 1.5%
The Coca-Cola Company 281,000 13,224,562
PepsiCo, Inc. 110,000 4,035,625
------------
17,260,187
Brokerage & Investment Management 0.6%
Morgan Stanley, Dean Witter & Company 87,000 6,677,250
Commercial Service 0.3%
The Interpublic Group of Companies, Inc. 73,900 3,029,900
Computer - Manufacturers 3.9%
Compaq Computer Corporation 135,000 3,948,750
Hewlett-Packard Company 62,000 8,370,000
International Business Machines Corporation76,900 8,583,962
Sun Microsystems, Inc. (b) 260,000 23,903,750
------------
44,806,462
Computer - Peripheral Equipment 1.1%
EMC Communications Corporation (b) 94,000 13,060,125
</TABLE>
25
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) April 30, 2000 (Unaudited)
-------------------------------------------------------------------------------
--------------------------------------------------------------
STRONG GROWTH & INCOME FUND (continued)
--------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
--------------------------------------------------------------
Computer Software 9.4%
Cisco Systems, Inc. (b) 764,000 $ 52,966,687
Microsoft Corporation (b) 247,000 17,228,250
Oracle Systems Corporation (b) 481,000 38,449,937
------------
108,644,874
Cosmetic & Personal Care 0.7%
The Gillette Company 225,000 8,325,000
Diversified Operations 1.5%
Honeywell International, Inc. 214,000 11,984,000
Tyco International, Ltd. 104,000 4,777,500
------------
16,761,500
Electric Power 1.9%
Duke Energy Corporation 382,500 21,993,750
Electrical Equipment 5.3%
Emerson Electric Company 102,000 5,597,250
General Electric Company 331,500 52,128,375
Parker-Hannifin Corporation 70,000 3,255,000
------------
60,980,625
Electronics - Semiconductor Equipment 2.9%
Applied Materials, Inc. (b) 323,000 32,885,438
Electronics - Semiconductor Manufacturing 18.6%
Atmel Corporation (b) 296,000 14,485,500
Intel Corporation 354,000 44,891,625
LSI Logic Corporation (b) 364,000 22,750,000
Maxim Integrated Products, Inc. (b) 172,000 11,147,750
Micron Technology, Inc. (b) 75,000 10,443,750
PMC-Sierra, Inc. (b) 43,000 8,250,625
STMicroelectronics NV 184,000 34,902,500
Texas Instruments, Inc. 265,000 43,161,875
Xilinx, Inc. (b) 331,000 24,245,750
------------
214,279,375
Finance - Miscellaneous 1.8%
American Express Company 80,000 12,005,000
First Data Corporation 190,000 9,250,625
------------
21,255,625
Food 0.6%
Quaker Oats Company 100,000 6,518,750
Healthcare - Drug/Diversified 7.0%
American Home Products Corporation 348,000 19,553,250
Merck & Company, Inc. 230,000 15,985,000
Pfizer, Inc. 343,000 14,448,875
Pharmacia Corporation 201,000 10,037,437
Warner-Lambert Company 181,000 20,600,062
------------
80,624,624
Insurance - Diversified 0.7%
Marsh & McLennan Companies, Inc. 79,000 7,786,438
Insurance - Property & Casualty 0.6%
American International Group, Inc. 63,000 6,910,313
Internet - Internet Service Provider/Content 1.9%
America Online, Inc. (b) 245,000 14,654,063
Yahoo! Inc. (b) 54,000 7,033,500
------------
21,687,563
Media - Cable TV 2.0%
AT&T Corporation - Liberty Media Group
Class A (b) 154,000 7,690,375
Time Warner, Inc. 165,000 14,839,688
------------
22,530,063
Media - Publishing 0.3%
McGraw-Hill, Inc. 74,600 3,916,500
<CAPTION>
---------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
---------------------------------------------------------------
Media - Radio/TV 1.7%
CBS Corporation (b) 205,000 $ 12,043,750
Clear Channel Communications, Inc. (b) 102,000 7,344,000
-------------
19,387,750
Metal Products & Fabrication 0.7%
Illinois Tool Works, Inc. 120,000 7,687,500
Metals & Mining 0.8%
Alcoa, Inc. 152,000 9,861,000
Mortgage & Related Service 1.2%
Federal Home Loan Mortgage Corporation 306,000 14,056,875
Natural Gas Distribution 1.0%
Dynegy, Inc. 75,500 4,940,531
Enron Corporation 94,000 6,550,625
-------------
11,491,156
Office Automation 0.2%
Xerox Corporation 90,000 2,379,375
Oil - International Integrated 4.9%
BP Amoco PLC Sponsored ADR 204,000 10,404,000
Chevron Corporation 148,000 12,598,500
Exxon Mobil Corporation 310,000 24,083,125
Royal Dutch Petroleum Company -
New York Registry Shares 169,000 9,696,375
-------------
56,782,000
Oil Well Equipment & Service 1.3%
Halliburton Company 143,000 6,318,812
Schlumberger, Ltd. 111,000 8,498,438
-------------
14,817,250
Retail - Drug Store 0.2%
Walgreen Company 102,800 2,891,250
Retail - Food Chain 0.3%
Safeway, Inc. (b) 90,000 3,971,250
Retail - Major Chain 2.3%
Target Corporation 158,000 10,516,875
Wal-Mart Stores, Inc. 287,000 15,892,625
-------------
26,409,500
Retail - Specialty 1.3%
The Home Depot, Inc. 178,500 10,007,156
Lowe's Companies, Inc. 110,000 5,445,000
-------------
15,452,156
Telecommunication Equipment 8.0%
Ericsson (LM) Telephone Company ADR
Class B 195,000 17,245,313
JDS Uniphase Corporation (b) 110,200 11,426,363
Lucent Technologies, Inc. 202,000 12,561,875
Motorola, Inc. 155,500 18,514,219
Nokia Corporation Sponsored ADR 252,000 14,332,500
Nortel Networks Corporation 163,000 18,459,750
-------------
92,540,020
Telecommunications - Services 3.1%
AT&T Corporation 364,000 16,994,250
Bell Atlantic Corporation 119,000 7,050,750
Sprint Corporation 197,000 12,115,500
-------------
36,160,500
Telephone 1.3%
BellSouth Corporation 245,000 11,928,437
SBC Communications, Inc. 67,000 2,935,437
-------------
14,863,874
----------------------------------------------------------------
Total Common Stocks (Cost $759,803,335) 1,134,101,381
----------------------------------------------------------------
</TABLE>
26
<PAGE>
--------------------------------------------------------------
STRONG GROWTH & INCOME FUND (continued)
--------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
<S> <C> <C>
-----------------------------------------------------------------
Convertible Bonds 1.5%
Juniper Networks, Inc. Subordinated Notes,
4.75%, Due 3/15/07 $9,200,000 $ 8,429,500
Veritas Software Corporation Subordinated
Notes, 5.25%, Due 11/01/04 765,000 8,602,425
-----------------------------------------------------------------
Total Convertible Bonds (Cost $21,349,840) 17,031,925
-----------------------------------------------------------------
Short-Term Investments (a) 0.5%
Commercial Paper 0.1%
Interest Bearing, Due Upon Demand
Warner Lambert Company, 5.76% 637,400 637,400
Repurchase Agreements 0.4%
ABN-AMRO Inc. (Dated 4/28/00),
5.78%, Due 5/01/00 (Repurchase
proceeds $5,102,457);
Collateralized by:
U.S. Government & Agency Issues (e) 5,100,000 5,100,000
-----------------------------------------------------------------
Total Short-Term Investments (Cost $5,737,400) 5,737,400
-----------------------------------------------------------------
-----------------------------------------------------------------
Total Investments in Securities
(Cost $786,890,575) 100.3% 1,156,870,706
Other Assets and Liabilities, Net (0.3%) (3,496,033)
-----------------------------------------------------------------
Net Assets 100.0% $1,153,374,673
=================================================================
WRITTEN OPTIONS ACTIVITY
-----------------------------------------------------------------
<CAPTION>
Contracts Premiums
<S> <C> <C>
-----------------------------------------------------------------
Options outstanding at
beginning of period -- $ --
Options written during the period 100 382,505
Options closed (100) (382,505)
Options expired -- --
Options exercised -- --
---- ----------
Options outstanding at end of period -- $ --
==== ==========
Closed options resulted in a capital loss of $67,795.
</TABLE>
------------------------------------------------------------------------------
LEGEND
------------------------------------------------------------------------------
(a) Short-term investments include any security which has a remaining
maturity of less than one year.
(b) Non-income producing security.
(c) All or a portion of security pledged to cover margin requirements
for futures contracts.
(d) Restricted security.
(e) See Note 2(I) of Notes to Financial Statements.
(f) When-issued security.
(g) All or a portion of these securities are held in conjunction with
open written option contracts.
Percentages are stated as a percent of net assets.
See Notes to Financial Statements.
27
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
------------------------------------------------------------------------------
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
(In Thousands, Except Per Share Amounts)
Strong American Strong Asset Strong Equity Strong Limited Strong Total
Utilities Fund Allocation Fund Income Fund Resources Fund Return Fund
--------------- --------------- ------------- --------------- ------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments in Securities, at Value
(Cost of $170,297, $262,578, $160,960,
$5,534 and $1,383,140, respectively) $205,519 $349,242 $232,843 $6,624 $1,814,420
Receivable for Securities Sold 2,584 476 -- 47 170
Receivable for Fund Shares Sold 78 7 45 -- 572
Dividends and Interest Receivable 394 3,147 208 2 656
Other Assets 17 42 13 12 105
-------- -------- -------- ------ ----------
Total Assets 208,592 352,914 233,109 6,685 1,815,923
Liabilities:
Payable for Securities Purchased 2,206 1,489 1,446 53 29,102
Written Options, at Value
(Premiums Received of $0, $0, $0, $0
and $642, respectively) -- -- -- -- 1,325
Payable for Fund Shares Redeemed 41 4 -- -- 65
Accrued Operating Expenses and
Other Liabilities 52 75 50 7 215
-------- -------- -------- ------ ----------
Total Liabilities 2,299 1,568 1,496 60 30,707
-------- -------- -------- ------ ----------
Net Assets $206,293 $351,346 $231,613 $6,625 $1,785,216
======== ======== ======== ====== ==========
Net Assets Consist of:
Capital Stock (par value and
paid-in capital) $163,323 $248,274 $155,742 $6,490 $1,087,948
Accumulated Net Investment
Income (Loss) 211 1,131 105 (12) (3,694)
Accumulated Net Realized Gain (Loss) 7,537 15,640 3,883 (944) 270,365
Net Unrealized Appreciation 35,222 86,301 71,883 1,091 430,597
-------- -------- -------- ------ ----------
Net Assets $206,293 $351,346 $231,613 $6,625 $1,785,216
======== ======== ======== ====== ==========
Capital Shares Outstanding
(Unlimited Number Authorized) 13,167 13,710 10,813 664 37,813
Net Asset Value Per Share $15.67 $25.63 $21.42 $9.98 $47.21
====== ====== ====== ===== ======
</TABLE>
See Notes to Financial Statements.
28
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (continued)
------------------------------------------------------------------------------
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
(In Thousands, Except As Noted)
Strong Blue Chip
100 Fund
----------------
<S> <C>
Assets:
Investments in Securities, at Value (Cost of $471,305) $ 613,974
Receivable for Securities Sold 14
Receivable for Fund Shares Sold 48
Dividends and Interest Receivable 269
Other Assets 48
------------
Total Assets 614,353
Liabilities:
Payable for Securities Purchased 7,763
Payable for Fund Shares Redeemed 78
Accrued Operating Expenses and Other Liabilities 153
------------
Total Liabilities 7,994
------------
Net Assets $606,359
============
Net Assets Consist of:
Capital Stock (par value and paid-in capital) $422,058
Accumulated Net Investment Loss (1,214)
Undistributed Net Realized Gain 42,845
Net Unrealized Appreciation 142,670
------------
Net Assets $606,359
============
Investor Class ($ and shares in full)
Net Assets $606,343,627
Capital Shares Outstanding (Unlimited Number Authorized) 27,214,909
Net Asset Value Per Share $22.28
======
Advisor Class ($ and shares in full)
Net Assets $15,228
Capital Shares Outstanding (Unlimited Number Authorized) 684
Net Asset Value Per Share $22.27
======
</TABLE>
See Notes to Financial Statements.
29
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (continued)
------------------------------------------------------------------------------
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
(In Thousands, Except As Noted)
Strong Growth
and Income Fund
----------------
<S> <C>
Assets:
Investments in Securities, at Value (Cost of $786,891) $ 1,156,871
Receivable for Securities Sold 7,923
Receivable for Fund Shares Sold 314
Dividends and Interest Receivable 645
Other Assets 64
------------
Total Assets 1,165,817
Liabilities:
Payable for Securities Purchased 12,202
Payable for Fund Shares Redeemed 23
Accrued Operating Expenses and Other Liabilities 217
------------
Total Liabilities 12,442
------------
Net Assets $ 1,153,375
============
Net Assets Consist of:
Capital Stock (par value and paid-in capital) $ 775,241
Accumulated Net Investment Loss (1,929)
Undistributed Net Realized Gain 10,083
Net Unrealized Appreciation 369,980
------------
Net Assets $ 1,153,375
============
Investor Class ($ and shares in full)
Net Assets $1,153,344,438
Capital Shares Outstanding (Unlimited Number Authorized) 39,278,281
Net Asset Value Per Share $29.36
======
Institutional Class ($ and shares in full)
Net Assets $15,124
Capital Shares Outstanding (Unlimited Number Authorized) 515
Net Asset Value Per Share $29.39
======
Advisor Class ($ and shares in full)
Net Assets $15,111
Capital Shares Outstanding (Unlimited Number Authorized) 515
Net Asset Value Per Share $29.36
======
</TABLE>
See Notes to Financial Statements.
30
<PAGE>
STATEMENTS OF OPERATIONS
------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
(In Thousands)
Strong American Strong Asset Strong Equity Strong Limited Strong Total
Utilities Fund Allocation Fund Income Fund Resources Fund Return Fund
--------------- --------------- ------------- --------------- ------------
<S> <C> <C> <C> <C> <C>
Income:
Dividends (net of foreign withholding
taxes of $14, $6, $2, $0 and $32,
respectively) $3,463 $ 1,260 $ 1,035 $ 38 $ 2,197
Interest 183 6,523 162 5 1,937
-------- -------- -------- ------ ----------
Total Income 3,646 7,783 1,197 43 4,134
Expenses:
Investment Advisory Fees 714 1,275 700 27 5,814
Administrative Fees 83 149 94 3 791
Custodian Fees 19 10 6 1 46
Shareholder Servicing Costs 219 316 170 9 901
Professional Fees 7 14 9 3 30
Federal and State Registration Fees 11 11 23 14 23
Other 45 66 58 3 238
-------- -------- -------- ------ ----------
Total Expenses before Waivers, Absorptions
and Fees Paid Indirectly by Advisor 1,098 1,841 1,060 60 7,843
Involuntary Expense Waivers and Absorptions
by Advisor -- -- -- (5) --
Fees Paid Indirectly by Advisor (Note 3) (2) (2) -- -- (15)
-------- -------- -------- ------ ----------
Expenses, Net 1,096 1,839 1,060 55 7,828
-------- -------- -------- ------ ----------
Net Investment Income (Loss) 2,550 5,944 137 (12) (3,694)
Realized and Unrealized Gain (Loss):
Net Realized Gain (Loss) on:
Investments 8,784 17,064 3,941 189 301,064
Futures Contracts and Options -- (430) (110) -- (12,126)
-------- -------- -------- ------ ----------
Net Realized Gain 8,784 16,634 3,831 189 288,938
Net Change in Unrealized
Appreciation/Depreciation on:
Investments (6,997) 3,747 8,970 668 126,179
Futures Contracts and Options -- (90) -- -- (2,075)
-------- -------- -------- ------ ----------
Net Change in Unrealized
Appreciation/Depreciation (6,997) 3,657 8,970 668 124,104
-------- -------- -------- ------ ----------
Net Gain on Investments 1,787 20,291 12,801 857 413,042
-------- -------- -------- ------ ----------
Net Increase in Net Assets
Resulting from Operations $4,337 $26,235 $12,938 $845 $409,348
====== ====== ====== ===== ======
</TABLE>
See Notes to Financial Statements.
31
<PAGE>
STATEMENTS OF OPERATIONS (continued)
------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
(In Thousands)
Strong Blue Chip
100 Fund
----------------
<S> <C>
Income:
Dividends $ 1,679
Interest 160
--------
Total Income 1,839
Expenses:
Investment Advisory Fees 1,848
Administrative Fee - Investor Class 249
Custodian Fees 20
Shareholder Servicing Costs - Investor Class 706
Transfer Agency Banking Charges - Investor Class 5
Reports to Shareholders - Investor Class 175
Other 49
--------
Total Expenses 3,052
--------
Net Investment Loss (1,213)
Realized and Unrealized Gain:
Net Realized Gain on Investments 46,454
Net Change in Unrealized Appreciation/Depreciation on Investments 64,476
--------
Net Gain on Investments 110,930
--------
Net Increase in Net Assets Resulting from Operations $109,717
========
<CAPTION>
Strong Growth
and Income Fund
---------------
<S> <C>
Income:
Dividends (net of foreign withholding taxes of $25) $ 3,351
Interest 194
--------
Total Income 3,545
Expenses:
Investment Advisory Fees 3,597
Administrative Fee - Investor Class 470
Custodian Fees 17
Shareholder Servicing Costs - Investor Class 1,065
Transfer Agency Banking Charges - Investor Class 1
Reports to Shareholders - Investor Class 229
Other 95
--------
Expenses, Net 5,474
--------
Net Investment Loss (1,929)
Realized and Unrealized Gain (Loss):
Net Realized Gain (Loss) on:
Investments 13,633
Options Contracts (614)
--------
Net Realized Gain 13,019
Net Change in Unrealized Appreciation/Depreciation on Investments 131,984
--------
Net Gain on Investments 145,003
--------
Net Increase in Net Assets Resulting from Operations $143,074
========
</TABLE>
32
See Notes to Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(In Thousands)
Strong American Strong Asset
Utilities Fund Allocation Fund
--------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 Oct. 31, 1999 April 30, 2000 Oct. 31, 1999
----------------- ------------- ----------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Operations:
Net Investment Income $ 2,550 $ 5,420 $ 5,944 $ 9,723
Net Realized Gain 8,784 22,724 16,634 9,892
Net Change in Unrealized Appreciation/Depreciation (6,997) (2,801) 3,657 41,258
-------- -------- -------- --------
Net Increase in Net Assets Resulting from Operations 4,337 25,343 26,235 60,873
Distributions:
From Net Investment Income (2,453) (5,845) (6,144) (9,224)
From Net Realized Gains (23,398) (8,562) (10,681) --
-------- -------- -------- --------
Total Distributions (25,851) (14,407) (16,825) (9,224)
Capital Share Transactions (Note 4):
Net Increase (Decrease) in Net Assets from
Capital Share Transactions (16,924) 19,530 (1,972) 3,867
-------- -------- -------- --------
Total Increase (Decrease) in Net Assets (38,438) 30,466 7,438 55,516
Net Assets:
Beginning of Period 244,731 214,265 343,908 288,392
-------- -------- -------- --------
End of Period $206,293 $244,731 $351,346 $343,908
======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Strong Equity Strong Limited
Income Fund Resources Fund
--------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 Oct. 31, 1999 April 30, 2000 Oct. 31, 1999
----------------- ------------- ----------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Operations:
Net Investment Income (Loss) $ 137 $ 567 ($ 12) ($ 15)
Net Realized Gain (Loss) 3,831 5,122 189 (465)
Net Change in Unrealized Appreciation/Depreciation 8,970 27,461 668 1,071
-------- -------- ------ ------
Net Increase in Net Assets Resulting from Operations 12,938 33,150 845 591
Distributions:
From Net Investment Income (31) (639) -- --
In Excess of Net Investment Income -- -- -- (8)
From Net Realized Gains (4,182) -- -- --
-------- -------- ------ ------
Total Distributions (4,213) (639) -- (8)
Capital Share Transactions (Note 4):
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 41,110 (21,489) (327) 578
-------- -------- ------ ------
Total Increase in Net Assets 49,835 11,022 518 1,161
Net Assets:
Beginning of Period 181,778 170,756 6,107 4,946
-------- -------- ------ ------
End of Period $231,613 $181,778 $6,625 $6,107
======== ======== ====== ======
</TABLE>
See Notes to Financial Statements.
33
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (continued)
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(In Thousands)
Strong Total
Return Fund
---------------------------------
Six Months Ended Year Ended
April 30, 2000 Oct. 31, 1999
---------------- -------------
(Unaudited)
<S> <C> <C>
Operations:
Net Investment Loss ($ 3,694) ($ 792)
Net Realized Gain 288,938 234,855
Net Change in Unrealized Appreciation/Depreciation 124,104 144,582
---------- ----------
Net Increase in Net Assets Resulting from Operations 409,348 378,645
Distributions:
In Excess of Net Investment Income -- (195)
From Net Realized Gains (238,888) (11,003)
---------- ----------
Total Distributions (238,888) (11,198)
Capital Share Transactions (Note 4):
Net Increase in Net Assets from Capital Share Transactions 361,532 23,129
---------- ----------
Total Increase in Net Assets 531,992 390,576
Net Assets:
Beginning of Period 1,253,224 862,648
---------- ----------
End of Period $1,785,216 $1,253,224
========== ==========
</TABLE>
<TABLE>
<CAPTION>
Strong Blue
Chip 100 Fund
---------------------------------
Six Months Ended Year Ended
April 30, 2000 Oct. 31, 1999
---------------- -------------
(Unaudited)
<S> <C> <C>
Operations:
Net Investment Loss ($ 1,213) ($ 1,011)
Net Realized Gain (Loss) 46,454 (1,779)
Net Change in Unrealized Appreciation/Depreciation 64,476 70,997
-------- --------
Net Increase in Net Assets Resulting from Operations 109,717 68,207
Distributions From Net Investment Income - Investor Class -- (6)
Capital Share Transactions (Note 4):
Net Increase in Net Assets from Capital Share Transactions 11,802 326,731
-------- ---------
Total Increase in Net Assets 121,519 394,932
Net Assets:
Beginning of Period 484,840 89,908
-------- --------
End of Period $606,359 $484,840
======== ========
</TABLE>
See Notes to Financial Statements.
34
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (continued)
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(In Thousands)
Strong Growth and
Income Fund
----------------------------------
Six Months Ended Year Ended
April 30, 2000 Oct. 31, 1999
---------------- --------------
(Unaudited)
<S> <C> <C>
Operations:
Net Investment Loss ($ 1,929) ($ 932)
Net Realized Gain 13,019 5,774
Net Change in Unrealized Appreciation/Depreciation 131,984 162,221
---------- --------
Net Increase in Net Assets Resulting from Operations 143,074 167,063
Distributions:
From Net Investment Income - Investor Class -- (59)
From Net Realized Gains - Investor Class (865) --
---------- --------
Total Distributions (865) (59)
Capital Share Transactions (Note 4):
Net Increase in Net Assets from Capital Share Transactions 149,704 295,570
---------- --------
Total Increase in Net Assets 291,913 462,574
Net Assets:
Beginning of Period 861,462 398,888
---------- --------
End of Period $1,153,375 $861,462
========== ========
</TABLE>
See Notes to Financial Statements.
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS
------------------------------------------------------------------------------
April 30, 2000 (Unaudited)
1. Organization
The accompanying financial statements represent the Strong Growth and
Income Funds (formerly the Strong Conservative Equity Funds) (the
"Funds"), which include the following funds, each with its own
investment objectives and policies:
- Strong American Utilities Fund(3) (a series of Strong Conservative
Equity Funds, Inc.(1))
- Strong Asset Allocation Fund, Inc.(1)(2)
- Strong Equity Income Fund(2) (a series of Strong Conservative Equity
Funds, Inc.(1))
- Strong Limited Resources Fund(2) (a series of Strong Conservative
Equity Funds, Inc.(1))
- Strong Total Return Fund, Inc.(1)(2)
- Strong Blue Chip 100 Fund(2) (a series of Strong Conservative Equity
Funds, Inc.(1))
- Strong Growth and Income Fund(2) (a series of Strong Conservative
Equity Funds, Inc.(1))
(1) An open-end management investment company registered under the
Investment Company Act of 1940, as amended.
(2) Diversified Fund
(3) Non-Diversified Fund
Effective February 29, 2000, the Strong Blue Chip 100 Fund has issued
two classes of shares: Investor Class and Advisor Class. The Strong
Growth and Income Fund has issued three classes of shares: Investor
Class, Institutional Class and Advisor Class. The Advisor Class shares
are subject to an annual distribution fee as described in Note 3. Each
class of shares has identical rights and privileges except with respect
to voting rights on matters pertaining to that class. Income, expenses
(other than expenses attributable to a specific class), and realized and
unrealized gains or losses on investments are allocated to each class of
shares based on its relative net assets.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by
the Funds in the preparation of their financial statements.
(A) Security Valuation -- Securities of the Funds are valued at fair
value through valuations obtained by a commercial pricing service or
the mean of the bid and asked prices when no last sales price is
available. Securities for which market quotations are not readily
available are valued at fair value as determined in good faith under
consistently applied procedures established by and under the general
supervision of the Board of Directors. Securities which are
purchased within 60 days of their stated maturity are valued at
amortized cost, which approximates fair value.
The Funds may own certain investment securities which are restricted
as to resale. These securities are valued after giving due
consideration to pertinent factors, including recent private sales,
market conditions and the issuer's financial performance. The Funds
generally bear the costs, if any, associated with the disposition of
restricted securities. Aggregate acquisition cost and fair value of
these restricted securities held at April 30, 2000 were as follows:
<TABLE>
Aggregate Aggregate Percent of
Cost Fair Value Net Assets Liquid*
----------- ----------- ---------- -------
<S> <C> <C> <C> <C>
Strong Asset Allocation Fund $22,596,383 $22,673,739 6.5% 91.3%
Strong Total Return Fund 5,330,313 4,570,625 0.3% 100.0%
</TABLE>
*Percentage of restricted securities which are either Section 4(2)
commercial paper or are eligible for resale pursuant to Rule 144A
under the Securities Act of 1933 and also have been determined to be
liquid by the Advisor based upon guidelines established by the
Fund's Board of Directors.
(B) Federal Income and Excise Taxes and Distributions to Shareholders --
The Funds 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 Funds.
Therefore, no federal income or excise tax provision is required.
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.
Each Fund generally pays dividends from net investment income
quarterly and distributes any net capital gains that it realizes
annually.
36
<PAGE>
(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) Certain Investment Risks-- The Funds may utilize derivative
instruments including options, futures and other instruments with
similar characteristics to the extent that they are consistent with
the Funds' investment objectives and limitations. The Funds intend
to use such derivative instruments primarily to hedge or protect
from adverse movements in securities prices or interest rates. The
use of these instruments may involve risks such as the possibility
of illiquid markets or imperfect correlation between the value of
the instruments and the underlying securities, or that the
counterparty will fail to perform its obligations.
Investments in foreign denominated assets or forward currency
contracts may involve greater risks than domestic investments due to
currency, political, economic, regulatory and market risks.
(E) Futures-- Upon entering into a futures contract, the Funds pledge to
the broker cash or other investments equal to the minimum "initial
margin" requirements of the exchange. Additional securities held by
the Funds may be designated as collateral on open futures contracts.
The Funds also receive from or pay to the broker an amount of cash
equal to the daily fluctuation in the value of the contract. Such
receipts or payments are known as "variation margin," and are
recorded as unrealized gains or losses. When the futures contract is
closed, a realized gain or loss is recorded equal to the difference
between the value of the contract at the time it was opened and the
value at the time it was closed.
(F) Options-- The Funds may write put or call options. Premiums received
by the Funds upon writing put or call options are recorded as an
asset with a corresponding liability which is subsequently adjusted
to the current market value of the option. Changes between the
initial premiums received and the current market value of the
options are recorded as unrealized gains or losses. When an option
expires, is exercised, or is closed, the Funds realize a gain or
loss, and the liability is eliminated. The Funds continue to bear
the risk of adverse movements in the price of the underlying asset
during the period of the option, although any potential loss during
the period would be reduced by the amount of the option premium
received. Securities held by the Funds may be designated as
collateral on written options.
(G) Foreign Currency Translation -- Investment securities and other
assets and liabilities initially expressed in foreign currencies are
converted daily to U.S. dollars based upon current exchange rates.
Purchases and sales of foreign investment securities and income are
converted to U.S. dollars based upon currency exchange rates
prevailing on the respective dates of such transactions. The effect
of changes in foreign exchange rates on realized and unrealized
security gains or losses is reflected as a component of such gains
or losses.
(H) Forward Foreign Currency Exchange Contracts -- Forward foreign
currency exchange contracts are valued at the forward rate and are
marked-to-market daily. The change in market value is recorded as an
unrealized gain or loss. When the contract is closed, the Funds
record an exchange gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the
time it was closed.
(I) Repurchase Agreements-- The Funds may enter into repurchase
agreements with institutions that the Funds' investment advisor,
Strong Capital Management, Inc. ("the Advisor"), has determined are
creditworthy pursuant to criteria adopted by the Board of Directors.
Each repurchase agreement is recorded at cost. The Funds require
that the collateral, represented by securities (primarily U.S.
Government securities), in a repurchase transaction be maintained in
a segregated account with a custodian bank in a manner sufficient to
enable the Funds to obtain those securities in the event of a
default of the repurchase agreement. On a daily basis, the Advisor
monitors the value of the collateral, including accrued interest, to
ensure it is at least equal to the amounts owed to the Funds under
each repurchase agreement.
(J) 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.
(K) Other -- Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income is recorded on the
accrual basis and includes amortization of premiums and discounts.
3. Related Party Transactions
The Advisor, with whom certain officers and directors of the Funds are
affiliated, provides investment advisory, administrative, shareholder
recordkeeping and related services to the Funds. Investment advisory and
administrative fees, which are established by terms of the Advisory
Agreements, are based on the following annualized rates of the average
daily net assets of the respective Fund:
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
-----------------------------------------------------------------------------
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Administrative Fees - Administrative Fees - Administrative Fees -
Advisory Fees Advisory Fees Investor Class Institutional Class Advisor Class
Nov. 1, 1999- March 1, 2000- March 1, 2000- March 1, 2000- March 1, 2000-
Feb. 29, 2000 April 30, 2000 April 30, 2000 April 30, 2000 April 30, 2000
------------- -------------- -------------------- --------------------- ---------------------
<S> <C> <C> <C> <C> <C>
Strong American Utilities Fund 0.75% 0.50% 0.25% * *
Strong Asset Allocation Fund 0.85%** 0.60%*** 0.25% * *
Strong Equity Income Fund 0.80% 0.55% 0.25% * *
Strong Limited Resources Fund 1.00% 0.75% 0.25% * *
Strong Total Return Fund 0.85%** 0.60%*** 0.25% * *
Strong Blue Chip 100 Fund 0.75% 0.50% 0.25% **** 0.25%
Strong Growth and Income Fund 0.80% 0.55% 0.25% 0.02% 0.25%
</TABLE>
* The Strong American Utilities Fund, Strong Asset Allocation Fund,
Strong Equity Income Fund, Strong Limited Resources Fund and Strong
Total Return Fund do not offer Institutional or Advisor Class
shares.
** The investment advisory fees are 0.85% of the first $35 million and
0.80% thereafter.
*** The investment advisory fees are 0.60% of the first $35 million and
0.55% thereafter.
**** The Strong Blue Chip 100 Fund does not offer Institutional Class
shares.
Based on the terms of the Advisory Agreements, advisory fees, administrative
fees and other expenses will be waived or absorbed by the Advisor if the
Fund's operating expenses exceed 2% of the average daily net assets of the
Fund. In addition, the Fund's Advisor may voluntarily waive or absorb certain
expenses at its discretion. Shareholder recordkeeping and related service
fees are based on contractually established rates for each open and closed
shareholder account. The Advisor also allocates to each Fund certain charges
or credits resulting from transfer agency banking activities based on each
Fund's level of subscription and redemption activity. Charges allocated to
the Funds by the Advisor are included in Other Expenses in the Fund's
Statement of Operations, except where indicated. Credits allocated by the
Advisor serve to reduce the shareholder servicing expenses incurred by the
Funds and are reported as Fees Paid Indirectly by Advisor in the Funds'
Statement of Operations. The Advisor is also compensated for certain other
services related to costs incurred for reports to shareholders.
W. H. Reaves & Co., Inc. ("Reaves") manages the investments of Strong
American Utilities Fund under an agreement with the Advisor. Reaves is
compensated by the Advisor (not the Fund) and bears all of its own expenses
in providing subadvisory services. In addition, Reaves directly effects
purchases and sales of securities for the Fund. In conjunction therewith,
brokerage commissions paid by the Fund for the six months ended April 30,
2000 totaled $232,176.
Scarborough Investment Advisors LLC manages the investments of Strong Limited
Resources Fund under an agreement with the Advisor. Scarborough is
compensated by the Advisor (not the Fund) and bears all of its own expenses
in providing subadvisory services.
The Strong Blue Chip 100 Fund and Strong Growth and Income Fund have entered
into a distribution agreement with Strong Investments, Inc. (the
"Distributor"), pursuant to Rule 12b-1 under the 1940 Act, on behalf of each
of the Fund's Advisor Class shares. Under the agreement, the Distributor is
paid an annual rate of 0.25% of the average daily net assets of the Advisor
Class shares as compensation for services provided and expenses incurred,
including amounts paid to brokers or dealers, in connection with the sale of
each Fund's shares. During the period March 1, 2000 to April 30, 2000, the
Strong Blue Chip 100 Fund and the Strong Growth and Income Fund each incurred
$6 of 12b-1 fees.
The Funds may invest cash in money market funds sponsored and managed by the
Advisor, subject to certain limitations. The terms of such transactions are
identical to those of non-related entities except that, to avoid duplicate
investment advisory fees, advisory fees of each Fund are reduced by an amount
equal to advisory fees paid to the Advisor under its investment advisory
agreements with the money market funds.
Certain information regarding related party transactions, for the six months
ended April 30, 2000 is as follows:
<TABLE>
<CAPTION>
Payable to Shareholder Servicing Transfer Agency Unaffiliated
Advisor at and Other Expenses Banking Directors'
April 30, 2000 Paid to Advisor Charges/(Credits) Fees
-------------- --------------------- ----------------- ------------
<S> <C> <C> <C> <C>
Strong American Utilities Fund $ 35,046 $ 219,401 ($ 2,320) $ 3,628
Strong Asset Allocation Fund 53,401 317,057 (1,725) 5,905
Strong Equity Income Fund 35,214 170,831 (296) 3,232
Strong Limited Resources Fund 4,481 8,826 244 608
Strong Total Return Fund 128,184 905,160 (15,030) 25,188
Strong Blue Chip 100 Fund 122,767 709,309 5,476 8,945
Strong Growth and Income Fund 179,502 1,069,615 574 15,263
</TABLE>
The Advisor owns 99% of the outstanding Advisor Class shares of the Strong
Blue Chip 100 Fund, 99% of the outstanding Advisor Class Shares of the Strong
Growth and Income Fund, and 100% of the outstanding Institutional Class
shares of the Strong Growth and Income Fund.
38
<PAGE>
4. Capital Share Transactions
<TABLE>
<CAPTION>
Strong American Strong Asset
Utilities Fund Allocation Fund
------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 Oct. 31, 1999 April 30, 2000 Oct. 31, 1999
--------------- ------------- ---------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Capital Share Transactions of Each of
the Funds Were as Follows:
Proceeds from Shares Sold $41,672,700 $108,125,690 $ 76,976,130 $61,187,544
Proceeds from Reinvestment of Distributions 24,345,917 13,629,156 16,228,290 8,843,599
Payment for Shares Redeemed (82,942,740) (102,224,773) (95,176,809) (66,164,564)
------------ ------------ ------------- -----------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions ($16,924,123) $ 19,530,073 ($ 1,972,389) $ 3,866,579
============= ============ ============== ===========
Transactions in Shares of Each of
the Funds Were as Follows:
Sold 2,728,622 6,418,152 3,018,054 2,544,251
Issued in Reinvestment of Distributions 1,654,678 809,700 633,252 369,652
Redeemed (5,458,122) (6,122,487) (3,741,808) (2,752,247)
----------- ----------- ----------- -----------
Net Increase (Decrease) in Shares of the Fund (1,074,822) 1,105,365 (90,502) 161,656
=========== ========== =========== ===========
<CAPTION>
Strong Equity Strong Limited
Income Fund Resources Fund
------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 Oct. 31, 1999 April 30, 2000 Oct. 31, 1999
---------------- ------------- ---------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Capital Share Transactions of Each of
the Funds Were as Follows:
Proceeds from Shares Sold $89,590,236 $63,876,400 $3,531,148 $6,190,816
Proceeds from Reinvestment of Distributions 4,032,754 612,284 -- 6,489
Payment for Shares Redeemed (52,513,420) (85,977,241) (3,858,075) (5,618,899)
------------ ----------- ----------- -----------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $41,109,570 ($21,488,557) ($ 326,927) $ 578,406
=========== ============ ============ ==========
Transactions in Shares of Each of
the Funds Were as Follows:
Sold 4,295,513 3,277,364 386,036 754,705
Issued in Reinvestment of Distributions 188,446 31,435 -- 854
Redeemed (2,503,105) (4,402,854) (430,653) (681,931)
----------- ---------- --------- ---------
Net Increase (Decrease) in Shares of the Fund 1,980,854 (1,094,055) (44,617) 73,628
=========== ========== ========= =========
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-------------------------------------------------------------------------------
APRIL 30, 2000 (UNAUDITED)
<CAPTION>
Strong Total Return Fund
------------------------------
Six Months Ended Year Ended
April 30, 2000 Oct. 31, 1999
---------------- -------------
(Unaudited)
<S> <C> <C>
Capital Share Transactions of Each of
the Funds Were as Follows:
Proceeds from Shares Sold $278,890,548 $221,427,152
Proceeds from Reinvestment of Distributions 231,474,320 10,867,367
Payment for Shares Redeemed (148,833,196) (209,164,690)
------------- -------------
Net Increase in Net Assets from
Capital Share Transactions $361,531,672 $ 23,129,829
============ ============
Transactions in Shares of Each of
the Funds Were as Follows:
Sold 5,775,396 5,972,687
Issued in Reinvestment of Distributions 4,975,791 314,085
Redeemed (3,123,643) (5,746,448)
----------- -----------
Net Increase in Shares of the Fund 7,627,544 540,324
=========== ===========
<CAPTION>
Strong Blue Chip 100 Fund
-------------------------------
Six Months Ended Year Ended
April 30, 2000 Oct. 31, 1999
---------------- -------------
(Unaudited) (Note 1)
<S> <C> <C>
Capital Share Transactions of Each Class of
Shares of the Funds Were as Follows:
INVESTOR CLASS
Proceeds from Shares Sold $191,165,206 $506,739,748
Proceeds from Reinvestment of Distributions -- 5,530
Payment for Shares Redeemed (179,377,890) (180,013,627)
------------- -------------
Net Increase in Net Assets from
Capital Share Transactions 11,787,316 326,731,651
ADVISOR CLASS
Proceeds from Shares Sold 15,035 --
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed -- --
-------- ------
Net Increase in Net Assets from
Capital Share Transactions 15,035 --
-------- ------
Net Increase in Net Assets from
Capital Share Transactions $ 11,802,351 $326,731,651
============= ============
Transactions in Shares of Each Class of the
Funds Were as Follows:
INVESTOR CLASS
Sold 8,940,359 30,780,023
Issued in Reinvestment of Distributions -- 352
Redeemed (8,518,473) (10,779,715)
----------- ------------
Net Increase in Shares 421,886 20,000,660
ADVISOR CLASS
Sold 684 --
Issued in Reinvestment of Distributions -- --
Redeemed -- --
----------- -----------
Net Increase in Shares 684 --
----------- -----------
Net Increase in Shares of the Fund 422,570 20,000,660
=========== ===========
40
<PAGE>
<CAPTION>
Strong Growth and Income Fund
---------------------------------
Six Months Ended Year Ended
April 30, 2000 Oct. 31, 1999
---------------- -------------
(Unaudited) (Note 1)
<S> <C> <C>
Capital Share Transactions of Each Class of
Shares of the Funds Were as Follows:
INVESTOR CLASS
Proceeds from Shares Sold $390,209,486 $493,658,555
Proceeds from Reinvestment of Distributions 830,406 57,543
Payment for Shares Redeemed (241,366,375) (198,145,274)
------------- -------------
Net Increase in Net Assets from
Capital Share Transactions 149,673,517 295,570,824
INSTITUTIONAL CLASS
Proceeds from Shares Sold 15,000 --
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed -- --
-------- ------
Net Increase in Net Assets from
Capital Share Transactions 15,000 --
ADVISOR CLASS
Proceeds from Shares Sold 15,025 --
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (20) --
-------- ------
Net Increase in Net Assets from
Capital Share Transactions 15,005 --
-------- ------
Net Increase in Net Assets from
Capital Share Transactions $149,703,522 $295,570,824
============ ============
Transactions in Shares of Each Class of the
Funds Were as Follows:
INVESTOR CLASS
Sold 13,681,570 21,495,816
Issued in Reinvestment of Distributions 29,147 2,633
Redeemed (8,531,839) (8,693,980)
----------- -----------
Net Increase in Shares 5,178,878 12,804,469
INSTITUTIONAL CLASS
Sold 515 --
Issued in Reinvestment of Distributions -- --
Redeemed -- --
------- ------
Net Increase in Shares 515 --
ADVISOR CLASS
Sold 516 --
Issued in Reinvestment of Distributions -- --
Redeemed (1) --
-------- -------
Net Increase in Shares 515 --
-------- -------
Net Increase in Shares of the Fund 5,179,908 12,804,469
========== ==========
</TABLE>
41
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-------------------------------------------------------------------------------
APRIL 30, 2000 (UNAUDITED)
5. Line of Credit
The Strong Funds have established a line of credit agreement ("LOC") with
certain financial institutions to be used for temporary or emergency
purposes, primarily for financing redemption payments. Combined borrowings
among all participating Strong Funds are subject to a $350 million cap on
the total LOC. For an individual Fund, borrowings under the LOC are limited
to either the lesser of 15% of the market value of the Fund's total assets
or any explicit borrowing limits in the Funds' prospectus. Principal and
interest on each borrowing under the LOC are due not more than 60 days
after the date of the borrowing. Borrowings under the LOC bear interest
based on prevailing market rates as defined in the LOC. A commitment fee of
0.08% per annum is incurred on the unused portion of the LOC and is
allocated to all participating Strong Funds. At April 30, 2000, there were
no borrowings by the Funds outstanding under the LOC.
6. Investment Transactions
The aggregate purchases and sales of long-term securities for the six
months ended April 30, 2000 were as follows:
<TABLE>
<CAPTION>
Purchases Sales
------------------------------------- -----------------------------------
U.S. Government U.S. Government
and Agency Other and Agency OTHER
--------------- -------------- ----------------- -----------
<S> <C> <C> <C> <C>
Strong American Utilities Fund $ -- $ 109,148,739 $ -- $ 146,005,136
Strong Asset Allocation Fund 52,234,604 104,212,329 11,405,918 155,666,342
Strong Equity Income Fund -- 76,880,093 -- 46,845,027
Strong Limited Resources Fund -- 1,778,592 -- 1,878,699
Strong Total Return Fund -- 4,187,184,717 -- 4,171,079,621
Strong Blue Chip 100 Fund -- 235,206,599 -- 214,987,955
Strong Growth and Income Fund -- 707,993,529 -- 557,176,924
</TABLE>
7. Income Tax Information
At April 30, 2000, the investment cost, gross unrealized appreciation and
depreciation on investments and capital loss carryovers (expiring in
varying amounts through 2007) for federal income tax purposes were as
follows:
<TABLE>
<CAPTION>
At April 30, 2000 AT OCTOBER 31, 1999
------------------------------------------------------------------ -------------------
Federal Tax Unrealized Unrealized NET CAPITAL LOSS
Cost Appreciation Depreciation Net Appreciation CARRYOVERS
------------------------------------------------------------------ -------------------
<S> <C> <C> <C> <C> <C>
Strong American Utilities Fund $ 172,172,988 $ 37,390,671 $ 4,044,504 $ 33,346,167 $--
Strong Asset Allocation Fund 264,006,623 96,820,124 11,584,569 85,235,555 --
Strong Equity Income Fund 161,620,231 74,087,472 2,864,765 71,222,707 --
Strong Limited Resources Fund 5,558,976 1,427,375 362,086 1,065,289 1,110,232
Strong Total Return Fund 1,422,993,310 412,271,591 22,169,360 390,102,231 --
Strong Blue Chip 100 Fund 473,636,369 164,212,888 23,874,767 140,338,121 2,312,330
Strong Growth and Income Fund 790,811,195 380,634,254 14,620,793 366,013,461 --
</TABLE>
42
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
STRONG AMERICAN UTILITIES FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Period Ended
----------------------------------------------------------------
April 30, Oct. 31, Oct. 31, Oct. 31, Oct. 31, Oct. 31,
Selected Per-share Data(a) 2000(b) 1999 1998 1997 1996 1995(c)
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $17.18 $16.31 $13.97 $12.64 $11.73 $ 9.46
Income From Investment Operations:
Net Investment Income 0.19 0.37 0.35 0.40 0.40 0.27
Net Realized and Unrealized Gains on Investments 0.25 1.52 3.12 1.98 0.90 2.25
---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.44 1.89 3.47 2.38 1.30 2.52
Less Distributions:
From Net Investment Income (0.19) (0.41) (0.37) (0.38) (0.39) (0.25)
From Net Realized Gains (1.76) (0.61) (0.76) (0.67) -- --
---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.95) (1.02) (1.13) (1.05) (0.39) (0.25)
---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $15.67 $17.18 $16.31 $13.97 $12.64 $11.73
=================================================================================================================================
Ratios and Supplemental Data
---------------------------------------------------------------------------------------------------------------------------------
Total Return +3.4% +11.8% +25.7% +19.7% +11.2% +26.9%
Net Assets, End of Period (In Millions) $206 $245 $214 $135 $122 $92
Ratio of Expenses to Average Net Assets without Fees Paid
Indirectly by Advisor 1.0%* 1.0% 1.0% 1.1% 1.2% 1.2%*
Ratio of Expenses to Average Net Assets 1.0%* 1.0% 1.0% 1.1% 1.2% 1.2%*
Ratio of Net Investment Income to Average Net Assets 2.4%* 2.2% 2.4% 3.0% 3.2% 3.4%*
Portfolio Turnover Rate 53.1% 74.9% 69.0% 61.9% 84.0% 56.4%
STRONG ASSET ALLOCATION FUND
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Period Ended
----------------------------------------------------------------
April 30, Oct. 31, Oct. 31, Oct. 31, Oct. 31, Oct. 31,
Selected Per-Share Data(a) 2000(b) 1999 1998 1997 1996 1995(c)
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $24.92 $21.14 $21.44 $20.12 $20.31 $17.91
Income From Investment Operations:
Net Investment Income 0.43 0.71 0.55 0.67 0.78 0.66
Net Realized and Unrealized Gains on Investments 1.47 3.75 1.75 2.96 1.05 2.32
---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.90 4.46 2.30 3.63 1.83 2.98
Less Distributions:
From Net Investment Income (0.44) (0.68) (0.54) (0.67) (0.84) (0.58)
In Excess of Net Investment Income -- -- -- (0.10) -- --
From Net Realized Gains (0.75) -- (2.04) (1.54) (1.18) --
In Excess of Realized Gains -- -- (0.02) -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.19) (0.68) (2.60) (2.31) (2.02) (0.58)
---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $25.63 $24.92 $21.14 $21.44 $20.12 $20.31
=================================================================================================================================
Ratios and Supplemental Data
---------------------------------------------------------------------------------------------------------------------------------
Total Return +7.7% +21.3% +11.8% +19.3% +9.5% +16.8%
Net Assets, End of Period (In Millions) $351 $344 $288 $277 $263 $261
Ratio of Expenses to Average Net Assets without Fees Paid
Indirectly by Advisor 1.0%* 1.1% 1.0% 1.1% 1.1% 1.2%*
Ratio of Expenses to Average Net Assets 1.0%* 1.1% 1.0% 1.1% 1.1% 1.2%*
Ratio of Net Investment Income to Average Net Assets 3.4%* 3.0% 2.5% 3.2% 3.9% 4.1%*
Portfolio Turnover Rate 45.8% 64.7% 185.9% 276.5% 446.7% 326.8%
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
(b) For the six months ended April 30, 2000 (unaudited).
(c) In 1995, the Fund changed its fiscal year-end from December to October.
See Notes to Financial Statements.
43
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
---------------------------------------------------------------------------------------------------------------------------------
STRONG EQUITY INCOME FUND
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Period Ended
----------------------------------------------------------------
April 30, Oct. 31, Oct. 31, Oct. 31, Oct. 31,
Selected Per-Share Data(a) 2000(b) 1999 1998 1997 1996(c)
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $20.58 $17.20 $15.84 $12.03 $10.00
Income From Investment Operations:
Net Investment Income 0.01 0.06 0.11 0.13 0.12
Net Realized and Unrealized Gains on Investments 1.31 3.39 2.05 3.81 2.02
---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.32 3.45 2.16 3.94 2.14
Less Distributions:
From Net Investment Income (0.00)(d) (0.07) (0.11) (0.13) (0.11)
From Net Realized Gains (0.48) -- (0.64) -- --
In Excess of Realized Gains -- -- (0.05) -- --
---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.48) (0.07) (0.80) (0.13) (0.11)
---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $21.42 $20.58 $17.20 $15.84 $12.03
=================================================================================================================================
Ratios and Supplemental Data
---------------------------------------------------------------------------------------------------------------------------------
Total Return +6.5% +20.1% +14.2% +32.9% +21.5%
Net Assets, End of Period (In Millions) $232 $182 $171 $134 $29
Ratio of Expenses to Average Net Assets 1.1%* 1.1% 1.1% 1.1% 1.3%*
Ratio of Net Investment Income to Average Net Assets 0.1%* 0.3% 0.7% 0.9% 1.6%*
Portfolio Turnover Rate 23.8% 32.3% 83.2% 152.6% 158.3%
STRONG LIMITED RESOURCES FUND
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Period Ended
----------------------------------------------------------------
April 30, Oct. 31, Oct. 31, Oct. 31,
Selected Per-Share Data(a) 2000(b) 1999 1998 1997(e)
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $8.62 $7.79 $9.51 $10.00
Income From Investment Operations:
Net Investment Loss (0.02) (0.02) (0.04) --
Net Realized and Unrealized Gains (Losses) on Investments 1.38 0.86 (1.68) (0.49)
---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.36 0.84 (1.72) (0.49)
Less Distributions:
From Net Investment Income -- -- (0.00)(d) --
In Excess of Net Investment Income -- (0.01) -- --
---------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (0.01) (0.00)(d) --
---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $9.98 $8.62 $7.79 $ 9.51
=================================================================================================================================
Ratios and Supplemental Data
-------------------------------------------------------------------------------------------------------------------
Total Return +15.8% +10.8% -18.0% -4.9%
Net Assets, End of Period (In Millions) $7 $6 $5 $5
Ratio of Expenses to Average Net Assets without Waivers
and Absorptions 2.0%* 2.0% 2.0% 2.0%*
Ratio of Expenses to Average Net Assets 1.9%* 2.0% 2.0% 2.0%*
Ratio of Net Investment Income (Loss) to Average Net Assets (0.4%)* (0.3%) (0.4%) 0.0%*(d)
Portfolio Turnover Rate 30.6% 55.4% 61.2% 1.2%
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
(b) For the six months ended April 30, 2000 (unaudited).
(c) For the period from December 31, 1995 (inception) to October 31, 1996.
(d) Amount calculated is less than $0.01 or 0.1%.
(e) For the period from September 30, 1997 (inception) to October 31, 1997.
See Notes to Financial Statements.
44
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
---------------------------------------------------------------------------------------------------------------------------------
STRONG TOTAL RETURN FUND
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Period Ended
----------------------------------------------------------------
April 30, Oct. 31, Oct. 31, Oct. 31, Oct. 31, Oct. 31,
Selected Per-Share Data(a) 2000(b) 1999 1998 1997 1996 1995(c)
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $41.52 $29.10 $32.66 $31.36 $28.02 $23.62
Income From Investment Operations:
Net Investment Income (Loss) (0.10) (0.03) 0.13 0.19 0.24 0.26
Net Realized and Unrealized Gains on Investments 13.67 12.84 3.44 6.21 4.65 4.41
---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 13.57 12.81 3.57 6.40 4.89 4.67
Less Distributions:
From Net Investment Income -- -- (0.14) (0.19) (0.24) (0.26)
In Excess of Net Investment Income -- (0.01) -- (0.17) (0.06) (0.01)
From Net Realized Gains (7.88) (0.38) (6.89) (4.74) (1.25) --
In Excess of Realized Gains -- -- (0.10) -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (7.88) (0.39) (7.13) (5.10) (1.55) (0.27)
---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $47.21 $41.52 $29.10 $32.66 $31.36 $28.02
=================================================================================================================================
Ratios and Supplemental Data
---------------------------------------------------------------------------------------------------------------------------------
Total Return +33.0% +44.3% +13.6% +23.4% +18.0% +19.8%
Net Assets, End of Period (In Millions) $1,785 $1,253 $863 $832 $760 $671
Ratio of Expenses to Average Net Assets without Fees Paid
Indirectly by Advisor 0.9%* 1.0% 1.0% 1.1% 1.1% 1.1%*
Ratio of Expenses to Average Net Assets 0.9%* 1.0% 1.0% 1.1% 1.1% 1.1%*
Ratio of Net Investment Income (Loss) to Average Net Assets (0.4%)* (0.1%) 0.4% 0.6% 0.8% 1.2%*
Portfolio Turnover Rate 267.0% 402.3% 267.8% 404.6% 502.4% 298.8%
STRONG BLUE CHIP 100 FUND -- INVESTOR CLASS
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Period Ended
----------------------------------------------------------------
April 30, Oct. 31, Oct. 31, Oct. 31,
Selected Per-Share Data(a) 2000(b) 1999 1998 1997(d)
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $18.10 $13.24 $10.39 $10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.04) (0.04) 0.10 0.01
Net Realized and Unrealized Gains on Investments 4.22 4.90 2.86 0.38
---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 4.18 4.86 2.96 0.39
Less Distributions:
From Net Investment Income -- (0.00)(e) (0.11) --
---------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (0.00)(e) (0.11) --
---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $22.28 $18.10 $13.24 $10.39
=================================================================================================================================
Ratios and Supplemental Data
---------------------------------------------------------------------------------------------------------------------------------
Total Return +23.1% +36.7% +28.6% +3.9%
Net Assets, End of Period (In Millions) $606 $485 $90 $5
Ratio of Expenses to Average Net Assets without Waivers
and Absorptions 1.1%* 1.2% 1.3% 2.0%*
Ratio of Expenses to Average Net Assets 1.1%* 1.2% 0.6% 1.0%*
Ratio of Net Investment Income (Loss) to Average Net Assets (0.4%)* (0.3%) 0.7% 0.6%*
Portfolio Turnover Rate(f) 38.9% 75.4% 46.5% 21.5%
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
(b) For the six months ended April 30, 2000 (unaudited).
(c) In 1995, the Fund changed its fiscal year-end from December to October.
(d) For the period from June 30, 1997 (inception) to October 31, 1997.
(e) Amount calculated is less than $0.01.
(f) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
See Notes to Financial Statements.
45
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
---------------------------------------------------------------------------------------------------------------------------------
STRONG BLUE CHIP 100 FUND -- ADVISOR CLASS
--------------------------------------------------------------------------------
<CAPTION>
Period Ended
------------
April 30,
Selected Per-Share Data(a) 2000(b)
--------------------------------------------------------------------------------
<S> <C>
Net Asset Value, Beginning of Period $21.99
Income From Investment Operations:
Net Investment Loss (0.03)
Net Realized and Unrealized Gains on Investments 0.31
--------------------------------------------------------------------------------
Total from Investment Operations 0.28
Less Distributions:
From Net Investment Income --
--------------------------------------------------------------------------------
Total Distributions --
-------------------------------------------------------------------------------
Net Asset Value, End of Period $22.27
================================================================================
Ratios and Supplemental Data
--------------------------------------------------------------------------------
Total Return +1.3%
Net Assets, End of Period (In Millions) $0(c)
Ratio of Expenses to Average Net Assets 1.3%*
Ratio of Net Investment Loss to Average Net Assets (0.7%)*
Portfolio Turnover Rate(d) 38.9%
STRONG GROWTH AND INCOME -- INVESTOR CLASS
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Period Ended
----------------------------------------------------------------
April 30, Oct. 31, Oct. 31, Oct. 31 Oct. 31,
Selected Per-Share Data(a) 2000(e) 1999 1998 1997 1996(g)
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $25.26 $18.73 $16.35 $12.38 $10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.05) (0.03) 0.03 0.07 0.04
Net Realized and Unrealized Gains on Investments 4.17 6.56 3.07 3.99 2.38
---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 4.12 6.53 3.10 4.06 2.42
Less Distributions:
From Net Investment Income -- (0.00)(f) (0.03) (0.07) (0.04)
From Net Realized Gains (0.02) -- (0.62) (0.02) --
In Excess of Realized Gains -- -- (0.07) -- --
---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.02) (0.00)(f) (0.72) (0.09) (0.04)
---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $29.36 $25.26 $18.73 $16.35 $12.38
=================================================================================================================================
Ratios and Supplemental Data
---------------------------------------------------------------------------------------------------------------------------------
Total Return +16.3% +34.9% +19.7% +32.9% +24.2%
Net Assets, End of Period (In Millions) $1,153 $861 $399 $227 $18
Ratio of Expenses to Average Net Assets 1.1%* 1.1% 1.1% 1.2% 1.9%*
Ratio of Net Investment Income (Loss) to Average Net Assets (0.4%)* (0.1%) 0.1% 0.5% 0.6%*
Portfolio Turnover Rate(d) 54.9% 52.3% 107.5% 237.8% 174.1%
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
(b) For the period from March 1, 2000 (Commencement of Class) to April 30, 2000
(Note 1) (unaudited).
(c) Amount is less than $500,000.
(d) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
(e) For the six months ended April 30, 2000 (unaudited).
(f) Amount calculated is less than $0.01.
(g) For the period from December 31, 1995 (inception) to October 31, 1996.
See Notes to Financial Statements.
46
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
---------------------------------------------------------------------------------------------------------------------------------
STRONG GROWTH AND INCOME FUND -- INSTITUTIONAL CLASS
--------------------------------------------------------------------------------
<CAPTION>
Period Ended
------------
April 30,
Selected Per-Share Data(a) 2000(b)
--------------------------------------------------------------------------------
<S> <C>
Net Asset Value, Beginning of Period $29.15
Income From Investment Operations:
Net Investment Loss (0.00)(c)
Net Realized and Unrealized Gains on Investments 0.24
--------------------------------------------------------------------------------
Total from Investment Operations 0.24
Less Distributions:
From Net Investment Income --
--------------------------------------------------------------------------------
Total Distributions --
--------------------------------------------------------------------------------
Net Asset Value, End of Period $29.39
================================================================================
Ratios and Supplemental Data
--------------------------------------------------------------------------------
Total Return +0.8%
Net Assets, End of Period (In Millions) $0(d)
Ratio of Expenses to Average Net Assets 0.7%*
Ratio of Net Investment Loss to Average Net Assets (0.1%)*
Portfolio Turnover Rate(e) 54.9%
STRONG GROWTH AND INCOME FUND -- ADVISOR CLASS
--------------------------------------------------------------------------------
<CAPTION>
Period Ended
------------
April 30,
Selected Per-Share Data(a) 2000(b)
--------------------------------------------------------------------------------
<S> <C>
Net Asset Value, Beginning of Period $29.15
Income From Investment Operations:
Net Investment Loss (0.04)
Net Realized and Unrealized Gains on Investments 0.25
--------------------------------------------------------------------------------
Total from Investment Operations 0.21
Less Distributions:
From Net Investment Income --
--------------------------------------------------------------------------------
Total Distributions --
--------------------------------------------------------------------------------
Net Asset Value, End of Period $29.36
================================================================================
Ratios and Supplemental Data
--------------------------------------------------------------------------------
Total Return +0.7%
Net Assets, End of Period (In Millions) $0(d)
Ratio of Expenses to Average Net Assets 1.3%*
Ratio of Net Investment Loss to Average Net Assets (0.7%)*
Portfolio Turnover Rate(e) 54.9%
</TABLE>
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
(b) For the period from March 1, 2000 (Commencement of Class) to April 30, 2000
(Note 1) (unaudited).
(c) Amount calculated is less than $0.01.
(d) Amount is less than $500,000.
(e) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
See Notes to Financial Statements.
47
<PAGE>
NOTES
--------------------------------------------------------------------------------
48
<PAGE>
DIRECTORS
Richard S. Strong
Marvin E. Nevins
William F. Vogt
Willie D. Davis
Stanley Kritzik
Neal Malicky
OFFICERS
Richard S. Strong, CHAIRMAN OF THE BOARD
Thomas M. Zoeller, VICE PRESIDENT
Dennis A. Wallestad, VICE PRESIDENT
Stephen J. Shenkenberg, VICE PRESIDENT AND SECRETARY
John S. Weitzer, VICE PRESIDENT
John W. Widmer, TREASURER
Rhonda K. Haight, ASSISTANT TREASURER
INVESTMENT ADVISOR
Strong Capital Management, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
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. Strong
Investments, Inc. RT4754-0600
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
STRONG INVESTMENTS
[LOGO] P.O. Box 2936
Milwaukee, Wisconsin 53201
