<PAGE>
ANNUAL REPORT | October 31, 2000
The Strong
Growth and Income
-------------------------------------------------------------------------------
Funds
[PHOTO HERE]
Strong American Utilities Fund
Strong Balanced Fund
Strong Equity Income Fund
Strong Large Cap Growth Fund
Strong Limited Resources Fund
Strong Blue Chip 100 Fund
Strong Growth and Income Fund
[LOGO HERE] STRONG
<PAGE>
A Few Words From Dick Strong
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[PHOTO HERE]
153 Rate Increases Later...
When Will the Pendulum Swing?
During the last 18 months, the central bankers of the world's most powerful
countries have had one overriding objective on their minds: to slow the economic
growth of their countries. To accomplish this objective, they have raised
interest rates around the globe a staggering total of 153 times.
Included in those 153 rate increases were 6 by the Federal Reserve Bank of the
United States. The Fed governors' objective was the same as their counterparts'
worldwide--to slow economic growth. And make no mistake...THEY WILL NOT FAIL!
Economic management is a nebulous process of leads and lags. It often takes
months or even years to get an accurate fix on the economy and gauge the
reaction to each action. It is an inexact cross between art and science.
In the last year and a half, the U.S. economy has contended with:
. Higher interest rates
. Oil selling upwards of $30 a barrel
. A strong U.S. dollar that rendered American goods and services more
expensive and less attractive to foreigners
. The erosion of wealth caused by a nearly 40% correction in the
Nasdaq
The end result of it all is less money circulating through our economy and a
slowing of economic growth.
We have already begun to see signs of a weakening economy. Sales falling short
of expectations, layoffs, disappointing corporate profits, and business failures
all point to a slowdown. How much more weakening lies ahead is impossible to
know. The combination of higher interest rates, expensive oil, the strong U.S.
dollar, and further market corrections could deliver one heck of a wallop!
The lesson to be learned from all of this is that the world's financial markets
and economies are inherently cyclical. There will always be good times and bad
times, booms and busts. A solid investment program must be built to withstand
the stress of expanding and contracting economic cycles.
At Strong, our research indicates that sometime soon, the central bankers of the
world will begin to actively stimulate their respective economies by easing up
on interest rates. The internal fabric of the U.S. economy remains the best it
has been in several decades. We believe that the economy and the financial
markets will once again begin to grow and prosper in late 2001 and 2002.
The financial markets have recently had a significant correction reminiscent of
1973-74. The stock market is usually an early indicator of economic strength or
weakness and will begin to move long before earnings, job reports, and business
activity catch up.
The important thing for investors to remember is not to react to whatever the
most recent stimulus has been, but to have a well-thought-out plan to reach
their objectives--and to stay the course with that plan. At Strong, we continue
to believe, as we did back in 1975, that a balanced approach to investing can
serve you and your family well. Our recommendation continues to be that
investors should construct a balanced portfolio of money funds, bond mutual
funds, and stock mutual funds.
/s/ Dick
<PAGE>
ANNUAL REPORT | October 31, 2000
The Strong
Growth and Income
--------------------------------------------------------------------------------
Funds
<TABLE>
Table of Contents
Investment Reviews
<S> <C>
Strong American Utilities Fund ............................... 2
Strong Balanced Fund ......................................... 4
Strong Equity Income Fund .................................... 6
Strong Large Cap Growth Fund ................................. 8
Strong Limited Resources Fund ................................ 10
Strong Blue Chip 100 Fund .................................... 12
Strong Growth and Income Fund ................................ 14
Financial Information
Schedules of Investments in Securities
Strong American Utilities Fund ............................. 16
Strong Balanced Fund ....................................... 16
Strong Equity Income Fund .................................. 20
Strong Large Cap Growth Fund ............................... 22
Strong Limited Resources Fund .............................. 24
Strong Blue Chip 100 Fund .................................. 25
Strong Growth and Income Fund .............................. 26
Statements of Assets and Liabilities ......................... 29
Statements of Operations ..................................... 32
Statements of Changes in Net Assets .......................... 35
Notes to Financial Statements ................................ 38
Financial Highlights ................................................. 45
Report of Independent Accountants .................................... 50
</TABLE>
<PAGE>
STRONG AMERICAN UTILITIES FUND
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.
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GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 7-1-93 to 10-31-00
<TABLE>
<CAPTION>
The Strong American Lipper Utility
Utilities Fund S&P 500 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 $12,818
Dec 97 $19,270 $23,993 $16,113
Dec 98 $23,190 $30,849 $19,077
Dec 99 $23,326 $37,341 $21,850
Oct 00 $27,862 $36,667 $23,787
</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 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.
Q: How did your fund perform?
A: During the fiscal year, the Fund was able to significantly outperform the
S&P 500 Index.* As the volatility of the broader market increased during
the period, investors increasingly demanded the type of defensive equity
securities in which the Fund typically invests. The Fund's returns were
further boosted by high oil and natural gas prices, which generally benefit
the energy-related companies within the portfolio.
Q: What market conditions, market events, and other factors impacted your
fund's performance?
A: The point of maximum pessimism with respect to electric utilities occurred
in February, when the Federal Reserve raised interest rates and the market
correctly anticipated another increase in March. However, investors
increasingly favored the defensive qualities of the companies in the Fund's
portfolio as a host of significant difficulties confronted the broader
market. The effects of higher interest rates, a strong dollar, and record-
high energy prices worked their way through the economy, slowing earnings
growth for a number of large multinational consumer and technology
companies.
In contrast, the majority of the Fund's utility- and energy-related
investments are free cash generators, which means these companies can buy
back stock, pay down debt, and in some cases, raise dividends. Earnings of
the
2
<PAGE>
Fund's energy-related companies, including certain gas utilities, have
benefited from high oil and natural gas prices. Historically, when
investors have faced uncertainty in the broad market, as they do now,
utilities have benefited from increased investor attention.
Q: What investment strategies and techniques impacted your fund's performance?
A: We increased the Fund's weighting in electric utilities to about 34% of
assets, up from 32%. Four of the Fund's top five stock holdings are
electric utilities. Gas utilities, which began the year at 15% of the
portfolio, represented more than 19% of assets at the end of October.
Notably, the Fund's unregulated electric generators and electric and gas
marketers have experienced meaningful stock price appreciation.
At the same time, we halved the Fund's position in telecommunications
companies. Investor concerns about competition in this sector and about the
significant investment that companies must make to participate in cellular
and enhanced services have weighed on telecommunication stock prices.
We maintained our high level of commitment to energy- related companies,
reflecting our expectation that continued firm oil and gas prices will
allow energy companies to enjoy higher sustained levels of cash flow and
earnings than they have experienced over the past 15 years.
Q: What is your future outlook?
A: We believe that to date, the market has not fully recognized the potential
for electric and gas utilities to employ their effective strategies and
competencies to prosper in the deregulated market ahead. In our opinion,
the great majority of the utility stocks in the portfolio continue to be
significantly underpriced, particularly in comparison with market averages.
We believe these companies may be able to produce earnings growth at a rate
of 7% to 10% on average for the next few years. Thereafter, we believe
these companies will be able to generate even higher levels of earnings
growth as they benefit from effective execution of their business
strategies. Because we think these stocks are currently so cheap, we
believe they have the potential for substantial stock-price increases as
more investors recognize their strength as long-term investment vehicles.
Overall, we consider the portfolio to be attractively priced and positioned
for rewarding investment performance going forward.
Thank you for your continued confidence in the Strong American Utilities
Fund.
William H. Reaves
Portfolio Manager
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AVERAGE ANNUAL
TOTAL RETURNS
As of 10-31-00
--------------
1-year 15.36%
3-year 17.48%
5-year 16.63%
Since Inception 15.00%
(7-1-93)
Equity funds are volatile investments and should only be considered for
long-term goals.
YIELD SUMMARY/1/
As of 10-31-00
--------------
30-day annualized yield 2.22%
---------------------------------------------------------------------------
From time to time, the Fund's advisor has waived its management fee and/or
absorbed fund expenses, which has resulted in higher yields and returns.
/1/ Yields are historical and do not represent future yields. Yields fluctuate.
Yields are as of 10-31-00.
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.
* 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>
Strong Balanced Fund
Your Fund's Approach
The Strong Balanced 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.
--------------------------------------------------------------------------------
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 12-30-81 to 10-31-00
[GRAPH]
<TABLE>
<CAPTION>
The Strong Lipper Flexible
Balanced Fund S&P 500 Index* Portfolio Funds Average*
<S> <C> <C> <C>
12-81 $ 10,000 $ 10,000 $ 10,000
12-84 $ 21,234 $ 15,830 $ 16,000
12-87 $ 29,734 $ 26,044 $ 24,439
12-90 $ 37,107 $ 38,751 $ 31,310
12-93 $ 52,469 $ 59,892 $ 47,544
12-96 $ 69,617 $102,656 $ 66,519
12-99 $113,836 $213,073 $101,433
10-00 $112,927 $209,225 $103,944
</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 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.
Q: How did your fund perform?
A: The markets were very volatile during the year. The first five months of
the fiscal year were marked by a steep rise in technology. This technology
bubble burst as the year progressed, leading investors to turn to other
sectors that are well represented in the portfolio, such as financials,
health care, and consumer staples. The Fund was not immune to market
volatility, although its balanced approach between stocks and bonds helped
mute its impact on the portfolio.
Q: What market conditions, market events, and other factors impacted your
fund's performance?
A: Although the Fed's interest rate hikes ended in late spring, their impact
filtered through the economy for months after, slowing the rate of growth
in corporate profitability and thus taking a toll on stock prices. A second
factor cutting into corporate earnings was increasing oil prices. Overall,
the slowing of corporate profit growth was the single largest factor in the
stock markets this year, although the market's broadening into once-
overlooked sectors, such as financials and consumer staples, helped to
boost the Fund's performance.
The Fed's activity, of course, also had an impact on the bond markets,
tending to drive short-term interest rates upward. At the long end of the
market, continued federal budget surpluses spurred government buybacks of
long-term Treasuries.
4
<PAGE>
Over the period, short-term rates rose, while long-term rates fell by
roughly half a percentage point. Rising prices for long Treasuries
benefited the performance of the Fund's bond investments.
Q: What investment strategies and techniques impacted your fund's performance?
A: On the stock side, we broadened the Fund's exposure to companies that had
the benefit of relatively low stock prices, sustainable earnings growth,
and rising returns. We moved the Fund's technology exposure away from
semiconductors, where growth was peaking, and toward the still-thriving
data networking and storage areas.
In the fixed income (bond) portion of the portfolio, we positioned the
portfolio with a barbell strategy early in 2000. This involved selling
intermediate-term Treasuries and replacing them with longer-term Treasuries
and cash instruments. This allowed the Fund's exposure to the risks
associated with interest rate hikes to remain about the same, while also
allowing it to invest in long-maturity Treasury bonds, which were
appreciating in price thanks to the demand sparked by the Federal
government's Treasury buybacks. In addition, cash provided relatively high
yields, while also reducing the overall risk of the portfolio. We took
profits on some of our holdings in the third quarter.
Q: What is your future outlook?
A: Our outlook remains cautiously optimistic. We believe many of the stock
market's excesses, particularly in technology, have been wrung out of the
market. In adjusting to a slower-growth economy, we believe investors have
put more money in sectors that just a few months earlier were considered
hopelessly out of fashion. We believe this broadening out of the market is
an important step in sustaining its long-term health.
As the rate of economic growth has slowed, we think the Fed's willingness
to suspend its inflation-fighting rate hikes provides a positive sign for
both the stock and bond markets. In time, the Fed may adopt a neutral
stance toward interest rates, but we believe that any rate cuts are at
least months away. Although the Fed has taken a break from raising rates,
it has been clear in stating that it views inflation, not recession, as the
greater threat to U.S. economic health.
We thank you for investing in the Strong Balanced Fund.
Rimas Milaitis
Portfolio Co-Manager
Jeffrey A. Koch
Portfolio Co-Manager
Bradley C. Tank
Portfolio Co-Manager
---------------------------------------------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS
As of 10-31-00
--------------
1-year 5.66%
3-year 12.71%
5-year 13.34%
10-year 12.02%
Since Inception 13.74%
(12-30-81)
The Fund invests a portion of its assets in lower-quality securities that
present a significant risk for loss of principal and interest. Securities
of the Fund are generally valued at fair value through valuations obtained
by a commercial pricing service. Please consider this before investing.
Equity funds are volatile investments and should only be considered for
long-term goals.
---------------------------------------------------------------------------
* The S&P 500 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>
Strong Equity Income Fund
Effective November 30, 2000, the Fund's name is changing from the Strong Equity
Income Fund to the Strong Advisor U.S. Value Fund.
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.
--------------------------------------------------------------------------------
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 12-29-95 to 10-31-00
[GRAPH]
<TABLE>
<CAPTION>
The Strong Lipper Large-Cap
Equity Income Fund S&P 500 Index* Value Funds Index*
<S> <C> <C> <C>
Dec 95 $10,000 $10,000 $10,000
Dec 96 $12,810 $12,533 $12,303
Dec 97 $16,822 $16,714 $15,806
Dec 98 $20,632 $21,491 $18,689
Dec 99 $23,736 $26,013 $20,704
Oct 00 $23,840 $25,543 $21,200
</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 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.
Q: How did your fund perform?
A: The Fund's diversified portfolio and its focus on leading companies with
superior relative earnings growth served it well during the year. Our
disciplined approach identified numerous opportunities outside of the
technology sector that allowed the Fund to withstand this volatile year.
Although the Fund was not immune to this year's volatility, our investment
approach allowed us to avoid the negative aftereffects of technology's
sharp decline.
Q: What market conditions, market events, and other factors impacted your
fund's performance?
A: It was certainly an interesting and complex year. Investor psychology swung
wildly from extreme bullishness to extreme pessimism. Financial markets
dislike uncertainty--and the past 12 months were anything but certain.
The markets were very volatile during the period, the first five months of
which were marked by an incredible rise in technology stocks. As the year
progressed, however, this technology bubble burst under the weight of a
Federal Reserve intent on slowing economic growth. With the decline of the
technology sector, we saw a number of other sectors, such as utilities,
health care, and financials, return to favor with investors.
One of the major influences on the stock market's performance was the
Federal Reserve's effort to slow
6
<PAGE>
economic growth and relieve inflationary pressure. The rate of corporate
profit growth slowed notably in response to the Fed. Rising oil prices also
dampened consumer spending and corporate profit margins. The slowing of
corporate profit growth was, in our opinion, the single largest factor
driving the markets this year. It forced investors to reevaluate their
assumptions and the valuations of technology stocks in particular.
Q: What investment strategies and techniques impacted your fund's performance?
A: During the year, the Fund maintained broad exposure to various industries
that had the benefit of low relative valuations, solid earnings growth, and
rising returns. The extremely high valuations within the technology sector
caused us to focus our attention on the many opportunities in other
sectors.
One such investment was in the Quaker Oats Company. It attracted our
attention through its relatively low valuation, rising returns, and ability
to sustain consistent earnings growth. The company's crown jewel is its
Gatorade sports drink business, and it was our belief that the market was
not fully valuing its position in the marketplace and growth potential.
This investment rewarded our shareholders handsomely during the year.
Another area of note is the financial sector, where we built up our
exposure, given expectations of a slowing economy and an end to the Fed's
interest rate hikes. This area had the benefit of both earnings growth and
low relative valuations.
Q: What is your future outlook?
A: We remain cautiously optimistic. This period of adjustment to slower
corporate profit growth has wrung many excesses out of the market,
particularly among the most speculative technology companies. This period
has also forced investors to broaden their horizons toward other areas of
the market. Such broadening is, to our mind, a cornerstone of a healthy
market.
We believe the Federal Reserve, which has maintained a bias toward
controlling inflation, appears to be due to change that stance soon to a
neutral posture. Such a shift would likely have very positive implications
for the market.
We see many building blocks that support an uptrend in stock prices:
economic activity slowing to sustainable levels, inflation remaining tame,
the Fed willing to stay on the sidelines, corporate profitability growing,
and investor interest broadening in sectors outside of technology.
We thank you sincerely for the privilege of helping you achieve your
long-term financial goals.
Rimas Milaitis
Portfolio Manager
---------------------------------------------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS
As of 10-31-00
--------------
1-year 7.72%
3-year 13.87%
Since Inception 19.69%
(12-29-95)
Equity funds are volatile investments and should only be considered for
long-term goals.
---------------------------------------------------------------------------
* 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>
Strong Large Cap Growth Fund
Your Fund's Approach
The Strong Large Cap Growth Fund seeks capital growth. It invests at least 65%
of its assets in stocks of large-capitalization companies that its managers
believe offer the potential for capital growth. The Fund's managers seek to
identify companies that have accelerating sales and earnings, enjoy a
competitive advantage, and have effective management. To a limited extent, the
Fund writes put and call options and may invest in foreign securities.
--------------------------------------------------------------------------------
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 12-30-81 to 10-31-00
[GRAPH]
<TABLE>
<CAPTION>
The Strong Large S&P 500 Lipper Large-Cap
Cap Growth Fund Index* Growth Funds Index*
<S> <C> <C> <C>
12-81 $ 10,000 $ 10,000 $ 10,000
12-84 $ 20,685 $ 15,425 $ 15,135
12-87 $ 33,002 $ 25,377 $ 24,258
12-90 $ 36,367 $ 37,758 $ 34,925
12-93 $ 59,852 $ 58,357 $ 56,735
12-96 $ 85,512 $ 10,074 $ 91,524
12-99 $223,975 $207,610 $214,856
10-00 $216,319 $203,861 $200,564
</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 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.
Q: How did your fund perform?
A: The Fund's strong results were achieved in a difficult environment for
growth stocks. It became increasingly difficult for investments favoring
the growth style to outperform the S&P 500 Index* as the year progressed,
due largely to the impact of the Federal Reserve's efforts to slow economic
growth by raising interest rates. We believe our investment approach led to
the impressive returns for the fiscal year.
During the year, the Fund's name was changed to the Strong Large Cap Growth
Fund.
Q: What market conditions, market events, and other factors impacted your
fund's performance?
A: The overarching economic issue during the past year was the Fed's effort to
slow economic growth. The Fed has raised the federal funds rate four times,
taking it from 5.25% to 6.5%. This has had a chilling effect on economic
growth, and particularly on stock market valuations. The highest-quality
companies with the highest growth have seen their price/earnings ratios
shrink the most. This presented a difficult environment for growth stock
investing. The stock market degenerated into a trading environment where
the lowest-quality growth companies and value-oriented companies often did
better because their valuations didn't have much more room to fall. The
volatility of stock
8
<PAGE>
movements became exaggerated, and rumors also began to have greater impact
on stock price movement. Despite the volatility and the weakness of the
market, corporate S&P 500 earnings held up well, driven largely by
productivity improvement and by improved demand.
Q: What investment strategies and techniques impacted your fund's performance?
A: We continued our strategy of identifying and investing in high-quality,
high-growth stocks, but tactically we did adjust our focus to take into
account higher interest rates and slower economic growth. Over the past
year, we reduced our exposure to retail, technology, and financial stocks.
We also increased our exposure to health care, biotechnology, and
independent power producers.
During the year, valuations of many technology issues were pushed down.
Reducing our exposure to this area--even though it included many high-
growth companies--helped to protect the Fund's performance. When the Fed
changes its posture on interest rates, we believe this group will provide
us with an excellent shopping list for new investments.
Probably the single greatest protection of the Fund's performance came from
its underexposure to consumer and retail stocks. These areas were
significantly hit over the past year, based on expectations that consumers
will spend less in a slower economic environment.
Q: What is your future outlook?
A: We are optimistic with regard to the stock market for the next year. That
said, we have certainly seen the economy slow, not just in the United
States, but globally as well. Another complicating issue is that the dollar
has risen against other currencies.
We believe we may have seen the end of the Fed's interest rate increases,
however, and looking forward, we have a brighter outlook overall. At the
very least, we believe the glass has stopped emptying, and the basic forces
that created the bull market over the past ten years are still in place.
We believe the recent interruption triggered by higher interest rates is
curative of the excesses in the economy. This should, therefore, allow for
the resumption of the bull market, particularly for growth stocks.
Thank you for your investment in the Strong Large Cap Growth Fund. We
appreciate the confidence you've shown in us.
Ronald C. Ognar
Portfolio Co-Manager
Ian J. Rogers
Portfolio Co-Manager
--------------------------------------------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS
As of 10-31-00
--------------
1-year 28.12%
3-year 28.06%
5-year 25.06%
10-year 19.81%
Since Inception 17.73%
(12-30-81)
Equity funds are volatile investments and should only be considered for
long-term goals.
* 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.
9
<PAGE>
Strong Limited Resources Fund
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.
--------------------------------------------------------------------------------
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 9-30-97 to 10-31-00
[GRAPH]
<TABLE>
<CAPTION>
The Strong Lipper Natural Resources
Limited Resources Fund S&P 500 Index* Funds Index*
<S> <C> <C> <C>
Sep 97 $10,000 $10,000 $10,000
Dec 97 $ 9,306 $10,287 $ 9,265
Jun 98 $ 8,626 $12,109 $ 8,989
Dec 98 $ 7,275 $13,227 $ 7,123
Jun 99 $ 8,988 $14,865 $ 9,234
Dec 99 $ 8,697 $16,010 $ 9,511
Jun 00 $10,381 $15,942 $11,041
Oct 00 $11,002 $15,721 $11,213
</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 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.
Q: How did your fund perform?
A: The Fund's outperformance was based upon the improving fundamentals for
energy. Energy stocks had a strong year, except for a dip when oil price
increases moderated and investor sentiment shifted strongly to technology.
The energy holdings within the Fund also helped to bolster the Fund's
returns during the year. Within the stock market, various groups took turns
becoming investor favorites. Technology was extraordinarily strong until
March, then declined rapidly, while pharmaceuticals, other consumer
nondurables, and financial stocks excelled. In the final analysis, the
overall market was virtually unchanged.
Q: What market conditions, market events, and other factors impacted your
fund's performance?
A: Energy stocks performed very well, reflecting higher worldwide demand for
oil and increasingly tight supply, despite continuous production increases
by OPEC. Strong natural gas prices were similarly a result of higher
demand, but also were supported by restricted supplies of this energy
source. As a result of the excellent relative and absolute earnings
experienced by energy companies, investor dollars began to flow into this
sector, further driving up the prices of many of these stocks. Other
sectors of the market were hurt by higher interest rates, disappointing
earnings, and the return to rationality in technology.
10
<PAGE>
Q: What investment strategies and techniques impacted your fund's performance?
A: Early in the Fund's fiscal year, it became apparent that the non-energy
resource stocks would be hurt by higher interest rates and higher fuel
costs. We, therefore, used new cash flows into the Fund to expand our
weighting in energy to more than 80% of fund assets, compared with less
than 75% at the beginning of the year. Within this broad sector, we raised
our weighting in oil service stocks to 20% from 14%, buying drilling stocks
such as Rowan Cos. and Transocean Sedco, and equipment suppliers, including
Grant Prideco and National Oilwell. We added two electric utilities, CMS
Energy and Duke Energy, which are prime examples of the growing convergence
between natural gas and electricity. In the large oils, we added to our
ExxonMobil position, as it appeared to us that this firm, the largest
company in the industry, was trading far below its historical relationship
to the market.
Q: What is your future outlook?
A: We continue to believe that the overall market will remain volatile,
reflecting high short-term interest rates, a slowing economy, and reduced
earnings expectations. We think that different sectors will take turns as
market leaders, until the market has fully discounted an economic slowdown.
When that occurs, we will likely find it advantageous to add to the Fund's
holdings in more cyclical resources, such as forest products, copper, and
chemicals.
Nevertheless, energy will remain the dominant force in our portfolio. We
believe that although today's high oil and natural gas prices are likely to
moderate somewhat, they will remain higher than historical levels. We
believe these higher prices will be necessary to attract the capital needed
to expand the world's energy plant--and until new oil and gas fields are
discovered and producing fuel, the world's economic growth will be hampered
by the tight supply/demand situation in energy.
Q: Do you believe that the recent strong performance in energy stocks is long
lasting?
A: As a portfolio manager who has been in the energy investment arena for more
than 30 years, I have previously experienced periods when energy stocks
briefly held center stage in the stock market. That said, I am now
convinced that we are currently in a very serious energy environment--one
that is comparable to the period in the 1970s, when energy stocks
represented the largest, and best-performing, component of the market. Oil
and natural gas are in very tight supply in the world. This situation has
resulted from 20 years of underinvestment in newly producing fields,
pipelines, tankers, electric generating facilities, and so forth. It will
require many years of new investment to correct the negligence of the past
two decades.
As capital flows to this area, I believe that energy companies will create
real value relative to the rest of the stock market. It should be an
exciting and rewarding future for investors in energy stocks. I thank you
for your confidence and your investment in the Fund.
Mark A. Baskir
Portfolio Manager
-------------------------------------------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS
As of 10-31-00
--------------
1-year 27.38%
3-year 4.98%
Since Inception 3.14%
(9-30-97)
Equity funds are volatile investments and should only be considered for
long-term goals.
--------------------------------------------------------------------------
* 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.
11
<PAGE>
Strong Blue Chip 100 Fund
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 she believes offer greater return
potential. To a limited extent, the Fund may also invest in dollar-denominated
foreign securities.
--------------------------------------------------------------------------------
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 6-30-97 to 10-31-00
<TABLE>
<CAPTION>
The Strong Blue Lipper Large-Cap
Chip 100 Fund S&P 500 Index* Growth Funds Index*
<S> <C> <C> <C>
Jun 97 $10,000 $10,000 $10,000
Dec 97 $10,872 $11,058 $10,933
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
Jun 00 $22,800 $17,137 $20,162
Oct 00 $21,175 $16,899 $18,777
</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 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.
Q: How did your fund perform?
A: The Fund surpassed the S&P 500 Index* by a healthy margin for the fiscal
year as a whole. The significant gains generated during the first half of
the year were able to offset the resulting declines during the turbulent
market periods in the second half. Because the gains during the first half
of the year more than compensated for the returns of the second half, the
Fund produced strong results for the overall period relative to the index.
Q: What market conditions, market events, and other factors impacted your
fund's performance?
A: As the Federal Reserve raised rates to cool down the rate of economic
growth, market participants grew concerned about the prospects for
companies' future earnings. The Fed has stood pat since late spring, but
the concerns about earnings remain. These worries provoked considerable
volatility in the markets and in the types of stocks in which the Fund
invests. Technology, a sector in which this fund is overweighted, has been
particularly hurt, primarily because so many tech companies were richly
valued.
Rising energy prices have also had an impact on the stocks in the
portfolio. Higher fuel prices can also cut into corporate earnings, and
they can reduce the amount of money consumers have available for other
purchases. The Fund's direct exposure to energy stocks is limited, as the
12
<PAGE>
universe of 100 stocks in which we invest does not include many such
stocks.
Q: What investment strategies and techniques impacted your fund's performance?
A: We have moved away from our overweightings in semiconductor stocks, putting
more of the Fund's assets into areas where we see greater opportunities for
earnings growth. Many of these are in other technology-related areas,
including enterprise software developers and data storage providers.
Generally, the Fund's sector weightings have changed little--what have
changed are some of the individual companies within those sectors. We
continue to hold core positions in companies such as General Electric, Wal-
Mart, and Citigroup.
Q: What is your future outlook?
A: We believe that despite the short-term thinking that has driven much of the
market recently, it's essential to keep a long-term perspective--and that
perspective is predominantly positive. Numerous structural improvements in
the U.S. economy and the improved business practices of U.S. companies have
combined to make our economy perhaps the most efficient it has ever been.
Thanks to productivity gains, it has been possible to increase the rate at
which the economy can grow without triggering inflation. Although short-
term concerns are inevitable, over the longer term, there is little to
suggest that these structural improvements will go away or lose their
impact.
Along with the rest of the country, we'll be keeping close tabs on
developments in Washington. While it's natural to focus attention on the
new President, the greater impact is likely to come from Congress, so
that's where we will keep a more watchful eye for the future direction of
any legislation that could affect the stock markets.
We thank you for your investment in the Strong Blue Chip 100 Fund.
Karen E. McGrath
Portfolio Manager
--------------------------------------------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS
As of 10-31-00
INVESTOR CLASS
--------------
1-year 15.97%
3-year 26.79%
Since Inception 25.24%
(6-30-97)
ADVISOR CLASS/1/
----------------
1-year 15.63%
3-year 26.54%
Since Inception 25.00%
(6-30-97)
Equity funds are volatile investments and should only be considered for
long-term goals.
---------------------------------------------------------------------------
From time to time, the Fund's advisor has waived its management fee and/or
absorbed fund expenses, which has resulted in higher returns.
/1/ The performance of the Advisor Class shares prior to 2-29-00 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.
* 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>
Strong Growth and Income Fund
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.
--------------------------------------------------------------------------------
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 12-29-95 to 10-31-00
[GRAPH]
<TABLE>
<CAPTION>
The Strong Growth S&P 500 Index* Lipper Large-Cap
and Income Fund Core Funds Index*
<S> <C> <C> <C>
Dec 95 $10,000 $10,000 $10,000
Dec 96 $13,191 $12,296 $11,984
Dec 97 $17,199 $16,398 $15,486
Dec 98 $22,866 $21,084 $19,657
Dec 99 $30,236 $25,521 $23,461
Oct 00 $29,930 $25,060 $23,540
</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 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.
Q: How did your fund perform?
A: The markets were quite volatile over the year. Technology stocks rose
steeply in the first five months, only to see those gains slip away. With
the decline of the technology sector, we saw a number of other sectors,
such as utilities, health care, and financials, regain the interest of
investors. Although the Fund was not immune to the year's volatility, it
was able to produce market-beating results that we attribute to our
disciplined focus on companies with superior relative earnings growth.
Q: What market conditions, market events, and other factors impacted your
fund's performance?
A: During the year, the market had to deal with many crosscurrents that
produced an incredible amount of volatility in the marketplace. These
issues included Y2K, interest rate hikes by the Federal Reserve, rising
energy prices, slowing growth in corporate profitability, and the
Presidential campaign.
Although the Fed's interest rate hikes ended in late spring, their impact
filtered through the economy for months afterward, slowing the rate of
growth in corporate profitability. A second factor cutting into corporate
earnings was the increase in oil prices. Overall, the slowing of corporate
profit growth was the single largest factor in the markets this year.
Investors' infatuation with technology stocks, especially Internet stocks,
quickly subsided as the rate of
14
<PAGE>
economic growth slowed. Investors returned to the more traditional
industries they had abandoned during the building of the technology
bubble--and many of these industries were well-represented in the
portfolio.
Q: What investment strategies and techniques impacted your fund's performance?
A: During the year, the Fund broadened its exposure to sectors that offered
low relative valuations as well as the ability to sustain earnings growth
in an economic environment fostering slower growth. One of our first moves
was to realign the Fund's technology exposure away from semiconductors,
whose growth rates were peaking, and toward the networking and storage
areas, which were showing no signs of earnings deceleration. Companies such
as Cisco Systems, a leader in networking, and EMC Communications
Corporation, a leader in data storage, were overweighted.
Away from technology, the utility sector attracted our attention because of
the deregulation taking place within the electric utility industry. Another
area of note is the financial sector, where we built up our exposure in
expectation of a slowing economy and an end to the Federal Reserve's
raising of rates.
Overall, our changes to the portfolio were based on identifying the
changing environment, interpreting its impact, and adjusting the Fund's
industry exposures with companies that we believe could maintain their high
rates of growth and returns.
Q: What is your future outlook?
A: Our outlook remains cautiously optimistic. Many of the market's excesses,
particularly in technology, have been wrung out of the market. This period
of adjustment to a slower-growth economy has forced investors to broaden
their horizons to incorporate more of the market than just technology.
That's a very positive step toward a healthier market going forward.
We see another positive sign in the end of the Fed's activity to raise
interest rates. With economic growth slowing to sustainable levels, the Fed
may be poised for a change to a neutral stance toward interest rates.
Inflation remains in check, partially because corporations' investments in
technology have greatly increased productivity levels, allowing the economy
to absorb such threats as high energy costs and full employment.
In all, we believe many factors are in place to support an upward trend in
stock prices. We thank you sincerely for the privilege of helping you to
pursue your long-term financial goals.
Rimas Milaitis
Portfolio Manager
--------------------------------------------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS
As of 10-31-00
INVESTOR CLASS
--------------
1-Year 12.29%
3-Year 21.95%
Since Inception 25.46%
(12-29-95)
ADVISOR CLASS/1/
----------------
1-Year 12.01%
3-Year 21.69%
Since Inception 25.21%
(12-29-95)
INSTITUTIONAL CLASS/2/
---------------------
1-Year 12.57%
3-Year 22.05%
Since Inception 25.52%
(12-29-95)
Equity funds are volitile investments and should be considered for long-
term goals.
---------------------------------------------------------------------------
/1/ The performance of the Advisor Class shares prior to 2-29-00 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 2-29-00 is based
on the Fund's Investor Class shares' performance. Please consult a
prospectus for information about all share classes.
* The S&P 500 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>
<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES October 31, 2000
-------------------------------------------------------------------------------------------------------------------
STRONG AMERICAN UTILITIES FUND
Shares or
Principal Value
Amount (Note 2)
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks 92.9%
Electric Utility 33.5%
The AES Corporation (b) 47,000 $ 2,655,500
Ameren Corporation 53,000 2,106,750
Dominion Resources, Inc. 365,035 21,742,397
Duke Energy Corporation 138,000 11,928,375
Energy East Corporation 25,000 504,687
FirstEnergy Corporation 585,700 15,154,988
NiSource, Inc. 154,000 3,840,375
SCANA Corporation 504,999 13,382,473
TECO Energy 564,700 15,741,013
------------
87,056,558
Gas Utility 20.1%
Coastal Corporation 99,600 7,513,575
Dynegy, Inc. 222,000 10,281,375
El Paso Energy Corporation 8,500 532,844
Enron Corporation 94,500 7,754,906
Equitable Resources, Inc. 160,600 9,314,800
MCN Energy Group, Inc. 212,000 5,220,500
National Fuel Gas Company 3,300 176,963
Oneok, Inc. 90,000 3,566,250
South Jersey Industries, Inc. 37,900 1,103,837
Vectren Corporation 290,565 6,719,316
------------
52,184,366
Oil & Gas - Canadian Integrated 2.7%
Imperial Oil, Ltd. 282,400 7,127,776
Oil & Gas - Field Services 0.8%
Halliburton Company 34,900 1,293,481
Schlumberger, Ltd. 8,400 639,450
------------
1,932,931
Oil & Gas - International Integrated 15.4%
BP Amoco PLC Sponsored ADR 227,532 11,589,911
Chevron Corporation 52,400 4,303,350
Conoco, Inc. Class A 68,900 1,778,481
Exxon Mobil Corporation 97,200 8,669,025
Royal Dutch Petroleum Company 229,200 13,608,750
------------
39,949,517
Oil & Gas - Refining/Marketing 0.2%
Ultramar Diamond Shamrock Corporation 21,300 559,125
Oil & Gas - United States Integrated 2.3%
Kerr McGee Corporation 61,600 4,023,250
Phillips Petroleum Company 33,700 2,080,975
------------
6,104,225
Other Utility 0.3%
American Water Works Company, Inc. 33,000 804,375
Telecommunication 12.7%
ALLTEL Corporation 100,500 6,475,969
BellSouth Corporation 257,000 12,416,313
SBC Communications, Inc. 160,500 9,258,844
WorldCom, Inc. (b) 207,500 4,928,125
------------
33,079,251
Utility - Electric Power 4.8%
CMS Energy Corporation 9,000 243,000
GPU, Inc. 88,000 2,909,500
Northeast Utilities 45,000 916,875
TXU Corporation 228,000 8,450,250
------------
12,519,625
Utility - Gas Distribution 0.1%
New Jersey Resources Corporation 9,200 367,425
------------------------------------------------------------------------------------------------------------------
Total Common Stocks (Cost $187,647,153) 241,685,174
------------------------------------------------------------------------------------------------------------------
Short-Term Investments (a) 6.7%
Commercial Paper 0.8%
Interest Bearing, Due Upon Demand
Firstar Bank, N.A., 6.29% $ 2,128,600 $ 2,128,600
Sara Lee Corporation, 6.22% 16,000 16,000
Wisconsin Electric Power Company, 6.22% 20,700 20,700
------------
2,165,300
Repurchase Agreements 5.9%
ABN-AMRO Inc. (Dated 10/31/00), 6.56%,
Due 11/01/00 (Repurchase proceeds $15,402,806); Collateralized by:
United States Government & Agency Issues (e) 15,400,000 15,400,000
------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (Cost $17,565,300) 17,565,300
------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------
Total Investments in Securities (Cost $205,212,453) 99.6% 259,250,474
Other Assets and Liabilities, Net 0.4% 1,031,049
------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $260,281,523
==================================================================================================================
STRONG BALANCED FUND
Shares or
Principal Value
Amount (Note 2)
------------------------------------------------------------------------------------------------------------------
Common Stocks 59.5%
Aerospace - Defense 1.0%
The Boeing Company 37,000 $ 2,509,063
Lockheed Martin Corporation 32,000 1,147,200
------------
3,656,263
Banks - Money Center 3.6%
The Bank of New York Company, Inc. 48,000 2,763,000
The Chase Manhattan Corporation 26,800 1,219,400
Citigroup, Inc. (c) 176,666 9,297,048
------------
13,279,448
Banks - Super Regional 0.3%
State Street Corporation 9,700 1,209,978
Beverages - Alcoholic 1.0%
Anheuser-Busch Companies, Inc. 78,000 3,568,500
Beverages - Soft Drinks 0.8%
The Coca-Cola Company 22,000 1,328,250
PepsiCo, Inc. 32,000 1,550,000
------------
2,878,250
Chemicals - Basic 0.1%
Union Carbide Corporation 12,000 516,000
Computer - Local Networks 1.2%
Brocade Communications Systems, Inc. (b) 13,000 2,955,875
McDATA Corporation (b) 19,500 1,625,508
------------
4,581,383
Computer - Manufacturers 1.1%
Dell Computer Corporation (b) 70,000 2,065,000
International Business Machines Corporation 21,800 2,147,300
------------
4,212,300
Computer - Memory Devices 1.9%
EMC Communications Corporation (b) 57,000 5,076,563
Network Appliance, Inc. (b) 16,700 1,987,300
------------
7,063,863
Computer - Services 0.5%
Computer Sciences Corporation (b) 31,500 1,984,500
Computer Software - Desktop 1.7%
Microsoft Corporation (b) 94,000 6,474,250
</TABLE>
16
<PAGE>
--------------------------------------------------------------------------------
STRONG BALANCE FUND (continued)
<TABLE>
<CAPTION>
Shares or
Principal Value
Amount (Note 2)
--------------------------------------------------------------------------------
<S> <C> <C>
Computer Software - Enterprise 4.0%
i2 Technologies, Inc. (b) 12,000 $ 2,040,000
Oracle Systems Corporation (b) 140,000 4,620,000
Siebel Systems, Inc. (b) 31,500 3,305,531
Veritas Software Corporation 34,000 4,794,531
-------------
14,760,062
Cosmetics - Personal Care 0.2%
Estee Lauder Companies, Inc. Class A 13,400 622,263
Diversified Operations 1.2%
Pharmacia Corporation 16,595 912,725
Textron, Inc. 18,000 907,875
Tyco International, Ltd. 48,132 2,728,483
-------------
4,549,083
Electrical - Equipment 3.9%
Emerson Electric Company 25,000 1,835,938
General Electric Company (c) 228,000 12,497,250
-------------
14,333,188
Electronics - Semiconductor Manufacturing 2.9%
Intel Corporation 107,400 4,833,000
STMicroelectronics NV 50,000 2,596,875
Texas Instruments, Inc. 37,000 1,815,313
Xilinx, Inc. (b) 19,500 1,412,531
-------------
10,657,719
Finance - Consumer/Commercial Loans 0.7%
Household International, Inc. 50,000 2,515,625
Finance - Investment Brokers 0.2%
Morgan Stanley, Dean Witter & Company 10,400 835,250
Finance - Mortgage & Related Services 1.6%
Federal Home Loan Mortgage Corporation 40,300 2,418,000
Federal National Mortgage Association 45,000 3,465,000
-------------
5,883,000
Financial Services - Miscellaneous 1.7%
American Express Company (c) 66,500 3,990,000
First Data Corporation 20,000 1,002,500
MBNA Corporation 38,000 1,427,375
-------------
6,419,875
Insurance - Brokers 0.8%
Marsh & McLennan Companies, Inc. 22,000 2,876,500
Insurance - Property/Casualty/Title 2.3%
The Allstate Corporation 54,000 2,173,500
American International Group, Inc. 42,000 4,116,000
Chubb Corporation 18,000 1,519,875
XL Capital, Ltd. Class A 10,000 768,750
-------------
8,578,125
Internet - Internet Service Provider/Content 1.2%
America Online, Inc. (b) (c) 85,600 4,316,808
Internet - Network Security/Solutions 3.3%
Cisco Systems, Inc. (b) (c) 155,500 8,377,563
Juniper Networks, Inc. (b) 20,000 3,900,000
-------------
12,277,563
Internet - Software 0.8%
Ariba, Inc. (b) 11,000 1,390,125
BEA Systems, Inc. (b) 19,400 1,391,950
-------------
2,782,075
Media - Books 0.7%
McGraw-Hill, Inc. 41,800 2,683,038
Media - Cable TV 1.7%
Comcast Corporation Class A (b) 35,000 $ 1,426,250
Cox Communications, Inc. Class A (b) 37,000 1,630,313
Time Warner, Inc. 42,000 3,188,220
-------------
6,244,783
Media - Radio/TV 0.9%
Viacom, Inc. Class B (b) 56,155 3,193,816
Medical - Drug/Diversified 0.4%
Johnson & Johnson 17,500 1,612,188
Medical - Ethical Drugs 2.9%
American Home Products Corporation 47,000 2,984,500
Merck & Company, Inc. 31,000 2,788,063
Pfizer, Inc. 64,800 2,798,550
Schering-Plough Corporation 41,600 2,150,200
-------------
10,721,313
Medical - Health Maintenance Organizations 0.6%
UnitedHealth Group, Inc. 20,000 2,187,500
Medical - Hospitals 0.5%
HCA-The Healthcare Company 49,000 1,956,938
Oil & Gas - Field Services 0.7%
Key Energy Services, Inc. (b) 14,489 130,400
Schlumberger, Ltd. 32,000 2,436,000
-------------
2,566,400
Oil & Gas - International Integrated 2.5%
Chevron Corporation 17,500 1,437,188
Exxon Mobil Corporation 65,347 5,828,136
Royal Dutch Petroleum Company 35,000 2,078,125
-------------
9,343,449
Oil & Gas - Production/Pipeline 0.5%
Coastal Corporation 8,500 641,218
Enron Corporation 14,200 1,165,287
-------------
1,806,505
Retail - Drug Stores 1.3%
CVS Corporation 38,000 2,011,624
Walgreen Company 63,500 2,897,187
-------------
4,908,811
Retail - Major Discount Chains 1.3%
Wal-Mart Stores, Inc. 109,000 4,945,874
Retail - Super/Mini Markets 0.6%
Safeway, Inc. (b) 41,000 2,242,187
Retail/Wholesale - Building Products 1.4%
The Home Depot, Inc. 86,400 3,715,200
Lowe's Companies, Inc. 35,500 1,621,906
-------------
5,337,106
Retail/Wholesale - Computer/Cellular 0.3%
RadioShack Corporation 19,900 1,186,537
Soap & Cleaning Preparations 0.8%
Clorox Company 22,000 981,750
The Procter & Gamble Company 30,000 2,143,125
-------------
3,124,875
Telecommunications - Equipment 1.0%
Motorola, Inc. 32,000 798,000
Nortel Networks Corporation 64,000 2,912,000
-------------
3,710,000
</TABLE>
17
<PAGE>
<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) October 31, 2000
-------------------------------------------------------------------------------------------
STRONG BALANCED FUND (continued)
Shares or
Principal Value
Amount (Note 2)
-------------------------------------------------------------------------------------------
<S> <C> <C>
Telecommunications - Services 1.0%
McLeod, Inc. (b) 37,000 $ 712,250
Verizon Communications 24,300 1,404,843
WorldCom, Inc. (b) 61,030 1,449,463
-------------
3,566,556
Utility - Electric Power 0.8%
Duke Energy Corporation 21,000 1,815,187
Exelon Corporation 20,562 1,236,290
-------------
3,051,477
Utility - Telephone 1.6%
SBC Communications, Inc. 100,039 5,771,000
-------------------------------------------------------------------------------------------
Total Common Stocks (Cost $139,479,368) 220,992,224
-------------------------------------------------------------------------------------------
Warrants 0.3%
Concentric Network, Expire 12/15/07
(Acquired 12/15/97; Cost $6,980) (d) 2,000 80,000
e.spire Communications, Inc., Expire 11/01/05 1,750 87,500
GT Group Telecom, Inc., Expire 2/01/10
(Acquired 1/27/00; Cost $143,730) (d) 3,000 151,500
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) 1,500 975,000
RailAmerica Transportation Corporation,
Expire 8/15/10 2,000 21,000
-------------------------------------------------------------------------------------------
Total Warrants (Cost $460,110) 1,315,038
-------------------------------------------------------------------------------------------
Preferred Stocks 1.9%
R&B Falcon Corporation 13.875% Senior 1,846 2,381,890
Rural Cellular Corporation 12.25% Junior
Exchangeable 3,284 2,627,681
XO Communications, Inc. 14.00% Senior
Exchangeable 47,164 1,921,969
-------------------------------------------------------------------------------------------
Total Preferred Stocks (Cost $7,344,114) 6,931,540
-------------------------------------------------------------------------------------------
Corporate Bonds 22.0%
@Entertainment, Inc. Senior Discount Notes,
Series B:
Zero %, Due 7/15/08 (Rate Reset
Effective 7/15/03) $ 1,500,000 907,500
Zero %, Due 2/01/09 (Rate Reset
Effective 2/01/04) 500,000 277,500
AKI, Inc. Senior Notes, 10.50%, Due 7/01/08 800,000 640,000
APCOA/Standard Parking, Inc. Senior
Subordinated Notes, 9.25%, Due 3/15/08 2,250,000 801,563
AT&T Corporation Notes, 6.00%, Due 3/15/09 635,000 558,182
Adelphia Communications Corporation Senior
Notes, 10.875%, Due 10/01/10 2,000,000 1,880,000
The Allstate Corporation Notes, 7.875%,
Due 5/01/05 1,260,000 1,292,401
Asia Global Crossing, Ltd. Senior Yankee Notes,
13.375%, Due 10/15/10 (d) 4,000,000 3,720,000
Bank of America Corporation Subordinated
Notes, 7.80%, Due 2/15/10 1,030,000 1,047,822
Cendant Corporation Notes, 7.75%,
Due 12/01/03 2,000,000 1,941,190
Chase Manhattan Corporation Subordinated
Notes, 7.875%, Due 6/15/10 1,890,000 1,927,157
Conagra Foods, Inc. Notes, 7.50%, Due 9/15/05 1,230,000 1,242,133
DaimlerChrysler North America Holding
Corporation Notes, 7.75%, Due 6/15/05 1,470,000 1,496,873
Deutsche Telekom International Finance
Notes, 7.75%, Due 6/15/05 1,260,000 1,282,671
Duke Energy Field Services LLC Notes,
7.875%, Due 8/16/10 $ 1,550,000 $ 1,581,595
ESAT Telecom Group PLC Senior
Yankee Notes, Series B, 11.875%,
Due 12/01/08 (c) 4,600,000 5,451,000
Echostar Broadband Corporation Senior
Notes, 10.375%, Due 10/01/07 (d) 2,000,000 2,015,000
ekabel Hessen GmbH Senior Yankee Notes,
14.50%, Due 9/01/10 (d) 4,000,000 3,800,000
Fairpoint Communications, Inc. Senior
Subordinated Notes, 12.50%, Due 5/01/10 2,000,000 1,810,000
Ford Motor Credit Company Notes, 7.60%,
Due 8/01/05 (c) 2,485,000 2,503,906
GT Group Telecom, Inc. Senior Yankee
Discount Notes, Zero %, Due 2/01/10 (Rate
Reset Effective 2/01/05) 3,000,000 1,110,000
General Electric Capital Corporation Medium-
Term Notes, Series A:
6.80%, Due 11/01/05 1,360,000 1,360,558
7.25%, Due 5/03/04 2,185,000 2,220,897
General Motors Acceptance Corporation
Notes, 7.625%, Due 6/15/04 (c) 2,310,000 2,339,231
Jazz Casino Company LLC Senior Subordinated
Notes, 6.046%, Due 11/15/09 (Defaulted
Effective 12/05/00) 1,544,902 270,358
Lockheed Martin Corporation Notes,
7.95%, Due 12/01/05 (c) 2,300,000 2,365,810
MEDIQ, Inc. Senior Discount Debentures,
Zero %, Due 6/01/09 (Rate Reset Effective
6/01/03) 3,750,000 150,000
MetroNet Communications Corporation Senior
Yankee Notes, 10.625%, Due 11/01/08 (c) 2,000,000 2,206,940
MidAmerican Energy Holdings Company
Senior Notes, 7.23%, Due 9/15/05 2,000,000 1,979,224
Morgan Stanley, Dean Witter & Company
Notes, 8.00%, Due 6/15/10 1,155,000 1,199,650
NTL, Inc. Senior Notes, Series A, 12.75%,
Due 4/15/05 800,000 784,000
Northpoint Communications Group, Inc.
Senior Notes, 12.875%, Due 2/15/10 2,770,000 2,589,950
Orbital Imaging Corporation Senior Notes,
Series D, 11.625%, Due 3/01/05 2,000,000 470,000
RailAmerica Transportation Corporation
Senior Subordinated Notes, 12.875%,
Due 8/15/10 (d) 2,000,000 1,870,000
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 2,115,000
Rhythms NetConnections, Inc. Senior Notes,
Series B, 14.00%, Due 2/15/10 3,000,000 1,455,000
Rose Hills Company Senior Subordinated Notes,
9.50%, Due 11/15/04 175,000 102,813
Sabreliner Corporation Senior Notes, 11.00%,
Due 6/15/08 (d) 2,500,000 2,062,500
Sprint Capital Corporation Guaranteed Notes,
5.875%, Due 5/01/04 2,000,000 1,909,798
Time Warner, Inc. Debentures, 9.125%,
Due 1/15/13 265,000 296,557
Town Sports International, Inc. Senior Notes,
Series B, 9.75%, Due 10/15/04 1,000,000 955,000
US Air 1993-A Pass-Thru Trust Certificates,
Series 1993-A2, 9.625%, Due 9/01/03 1,675,000 1,627,830
US Airways Mortgage Pass-Thru Trust Certificates,
Series 2000-3G, 7.89%, Due 9/01/20 985,000 988,477
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
STRONG BALANCED FUND (continued)
Shares or
Principal Value
Amount (Note 2)
-------------------------------------------------------------------------------------------
<S> <C> <C>
USX-Marathon Group Notes, 6.85%,
Due 3/01/08 $ 1,000,000 $ 959,620
United Industries Corporation Senior
Subordinated Notes, Series B, 9.875%,
Due 4/01/09 1,800,000 792,000
United International Holdings, Inc. Senior
Secured Discount Notes, Series B, Zero %,
Due 2/15/08 (Rate Reset Effective 2/15/03) 1,500,000 922,500
Viacom, Inc. Senior Notes, 7.70%, Due 7/30/10 1,840,000 1,877,654
Viatel, Inc. Senior Notes, 11.25%, Due 4/15/08 2,000,000 1,010,000
William Carter Senior Subordinated Notes,
Series A, 10.375%, Due 12/01/06 1,000,000 955,000
Williams Communications Group, Inc. Senior
Notes, 11.875%, Due 8/01/10 (d) 2,720,000 2,427,600
Winstar Communications, Inc. Senior Notes,
12.50%, Due 4/15/08 (d) 2,000,000 1,455,000
WorldCom, Inc. Notes:
7.875%, Due 5/15/03 1,260,000 1,282,075
8.00%, Due 5/15/06 1,260,000 1,293,066
-------------------------------------------------------------------------------------------
Total Corporate Bonds (Cost $92,738,501) 81,580,601
-------------------------------------------------------------------------------------------
Non-Agency Mortgage & Asset-Backed
Securities 6.6%
Associates Credit Card Master Notes Trust
Variable Rate Asset-Backed Notes, Series
2000-2, Class A, 6.72%, Due 9/18/06 3,520,000 3,523,374
Chase Mortgage Finance Corporation Mortgage
Pass-Thru Certificates, Series 1990-G,
Class A-Z1, 9.50%, Due 12/25/21 122,539 122,577
First Boston Mortgage Securities Corporation
Mortgage Pass-Thru Certificates,
Series 1993-2, Class A-3, 7.50%, Due 3/25/33 111 111
Holmes Financing Number 1 PLC Floating
Rate Notes, Series 1, Class 1A,
6.9381%, Due 7/15/05 (c) 5,750,000 5,751,783
Irwin Home Equity Trust Floating Rate
Asset-Backed Certificates, Series 2000-1,
Class A-2, 6.74%, Due 9/25/02 2,445,000 2,442,702
MBNA Master Credit Card Trust II Floating
Rate Asset-Backed Certificates, Series 1997-J,
Class A, 6.74%, Due 2/15/07 1,960,000 1,962,127
Mellon Residential Funding Corporation
Variable Rate Mortgage Pass-Thru Certificates,
Series 2000-TBC3, Class A-1,
6.84%, Due 12/15/30 2,465,701 2,465,701
Metris Master Trust Floating Rate Asset-
Backed Securities, Series 2000-2, Class A,
6.83%, Due 1/22/07 1,270,000 1,272,407
National City Credit Card Master Trust Floating
Rate Asset-Backed Certificates, Series 2000-1,
Class A, 6.77%, Due 8/15/07 500,000 500,640
Ryland Mortgage Securities Corporation III
Variable Rate Collateralized Mortgage Bonds,
Series 1992-C, Class 3-A, 11.6247%,
Due 11/25/30 17,936 17,861
Saxon Asset Securities Trust Mortgage Loan
Asset-Backed Certificates, Series 2000-3,
Class AF1, 6.73%, Due 8/25/15 1,119,594 1,119,594
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 1,960,000
Volkswagen Credit Auto Master Owner Trust
Floating Rate Loan-Backed Notes, Series
2000-1, Class A, 6.775%, Due 8/20/07 (c) $ 3,520,000 $ 3,525,371
-------------------------------------------------------------------------------------------
Total Non-Agency Mortgage & Asset-Backed
Securities (Cost $24,692,920) 24,664,248
-------------------------------------------------------------------------------------------
United States Government &
Agency Issues 11.4%
FHLMC Adjustable Rate Mortgage Participation
Certificates, 7.925%, Due 8/01/25 899,986 926,752
FHLMC Guaranteed Pass-Thru Certificates:
7.00%, Due 1/15/15 (g) 5,500,000 5,467,330
7.50%, Due 4/15/15 thru 10/15/29 (g) 4,190,000 4,211,139
8.50%, Due 4/15/28 (g) 6,500,000 6,654,375
9.50%, Due 1/01/06 29,788 30,554
10.25%, Due 3/01/15 89,843 95,527
10.50%, Due 1/01/16 10,941 11,796
FNMA Guaranteed Real Estate Mortgage
Investment Conduit Variable Rate Pass-Thru
Certificates:
6.648%, Due 10/25/22 413,265 411,201
8.143%, Due 7/01/26 5,409,694 5,564,663
FNMA Notes:
7.00%, Due 7/15/05 (c) 6,225,000 6,344,220
7.125%, Due 6/15/10 (c) 3,300,000 3,408,193
GNMA Guaranteed Pass-Thru Certificates,
7.50%, Due 12/15/07 920,401 926,906
Student Loan Marketing Association Student
Loan Trust Floating Rate Securities:
Series 1997-3, Class A1, 6.944%, Due 4/25/06 3,633,585 3,622,847
Series 2000-1, Class A1L, 6.85%, Due 10/27/08 1,760,014 1,761,870
United States Treasury Notes:
6.50%, Due 10/15/06 (c) 1,475,000 1,521,591
6.75%, Due 5/15/05 (c) 1,500,000 1,555,548
-------------------------------------------------------------------------------------------
Total United States Government & Agency
Issues (Cost $42,280,186) 42,514,512
-------------------------------------------------------------------------------------------
Short-Term Investments (a) 2.9%
Commercial Paper 0.2%
Interest Bearing, Due Upon Demand
Firstar Bank, N.A., 6.29% 683,500 683,500
Sara Lee Corporation, 6.22% 200,100 200,100
-------------
883,600
Corporate Notes 1.0%
Niagara Mohawk Power Corporation Senior
Notes, Series C, 7.125%, Due 7/01/01 3,780,488 3,783,054
Repurchase Agreements 1.4%
ABN-AMRO Inc. (Dated 10/31/00), 6.56%,
Due 11/01/00 (Repurchase proceeds $5,000,911);
Collateralized by: United States Government
& Agency Issues (e) 5,000,000 5,000,000
United States Government & Agency Issues 0.3%
United States Treasury Bills, Due 11/02/00 thru
1/25/01 (c) 1,025,000 1,022,905
-------------------------------------------------------------------------------------------
Total Short-Term Investments (Cost $10,675,441) 10,689,559
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
Total Investments in Securities (Cost $317,670,640) 104.6% 388,687,722
Other Assets and Liabilities, Net (4.6%) (17,152,325)
-------------------------------------------------------------------------------------------
Net Assets 100.0% $ 371,535,397
===========================================================================================
</TABLE>
19
<PAGE>
<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES (Continued) October 31, 2000
-------------------------------------------------------------------------------
STRONG BALANCED FUND (Continued)
-------------------------------------------------------------------------------
FUTURES
-------------------------------------------------------------------------------
Underlying Unrealized
Expiration Face Amount Appreciation/
Date at Value (Depreciation)
--------------------------------------------------------------------------------
<S> <C> <C> <C>
Purchased:
170 Five-Year U.S. Treasury Notes 12/00 $17,116,875 $ 48,153
34 Ten-Year U.S. Treasury Notes 12/00 3,423,906 (31,051)
20 Two-Year U.S. Treasury Notes 12/00 4,002,500 20,227
Sold:
35 S&P 500 Index 12/00 12,601,750 656,250
WRITTEN OPTIONS ACTIVITY
-------------------------------------------------------------------------------
Contracts Premiums
-------------------------------------------------------------------------------
Options outstanding at beginning of year -- $ --
Options written during the year 500 78,185
Options closed (500) (78,185)
Options expired -- --
Options exercised -- --
----------- ---------
Options outstanding at end of year -- $ --
=========== =========
Closed options resulted in a capital loss of $31,560.
-------------------------------------------------------------------------------
STRONG EQUITY INCOME FUND
-------------------------------------------------------------------------------
<CAPTION>
Shares or
Principal Value
Amount (Note 2)
--------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks 91.4%
Aerospace - Defense 2.2%
The Boeing Company 63,000 $ 4,272,187
Lockheed Martin Corporation 33,000 1,183,050
------------
5,455,237
Aerospace - Defense Equipment 1.6%
United Technologies Corporation 57,000 3,979,312
Auto Manufacturers - Domestic 0.3%
Ford Motor Company 33,564 876,859
Auto/Truck - Original Equipment 0.0%
Visteon Corporation 2,513 44,449
Banks - Money Center 4.8%
The Bank of New York Company, Inc. 72,000 4,144,500
The Chase Manhattan Corporation 29,800 1,355,900
Citigroup, Inc. 128,264 6,749,893
------------
12,250,293
Banks - Super Regional 1.6%
Comerica, Inc. 18,700 1,127,844
State Street Corporation 10,500 1,309,770
Wells Fargo Company 37,000 1,713,562
------------
4,151,176
Beverages - Alcoholic 2.3%
Anheuser-Busch Companies, Inc. 126,000 5,764,500
Beverages - Soft Drinks 0.9%
The Coca-Cola Company 22,500 1,358,437
PepsiCo, Inc. 19,000 920,312
------------
2,278,749
Building - Construction Products/Miscellaneous 0.2%
Masco Corporation 32,200 601,737
Commercial Services - Advertising 1.0%
The Interpublic Group of Companies, Inc. 61,800 2,653,537
Computer - Manufacturers 1.9%
Hewlett-Packard Company 34,000 $ 1,578,875
International Business Machines Corporation 23,800 2,344,300
Sun Microsystems, Inc. (b) 9,000 997,875
------------
4,921,050
Computer - Services 0.5%
Computer Sciences Corporation (b) 21,300 1,341,900
Computer Software - Enterprise 1.7%
Oracle Systems Corporation (b) 127,000 4,191,000
Cosmetics - Personal Care 0.8%
Estee Lauder Companies, Inc. Class A 11,400 529,387
The Gillette Company 45,000 1,569,375
------------
2,098,762
Diversified Operations 2.6%
E.I. Du Pont de Nemours & Company 21,200 961,950
Pharmacia Corporation 16,500 907,500
Textron, Inc. 40,000 2,017,500
Tyco International, Ltd. 47,000 2,664,312
------------
6,551,262
Electrical - Equipment 3.8%
Emerson Electric Company 38,000 2,790,625
General Electric Company 122,500 6,714,531
------------
9,505,156
Electronics - Semiconductor Manufacturing 4.4%
Intel Corporation 97,000 4,365,000
STMicroelectronics NV 54,500 2,830,594
Texas Instruments, Inc. 27,100 1,329,594
Xilinx, Inc. (b) 36,000 2,607,750
------------
11,132,938
Finance - Consumer/Commercial Loans 1.7%
Associates First Capital Corporation 44,000 1,633,500
Household International, Inc. 52,000 2,616,250
------------
4,249,750
Finance - Investment Brokers 0.8%
Merrill Lynch & Company, Inc. 18,000 1,260,000
Morgan Stanley, Dean Witter & Company 9,000 722,813
------------
1,982,813
Finance - Mortgage & Related Services 3.9%
Federal Home Loan Mortgage Corporation 124,000 7,440,000
Federal National Mortgage Association 30,000 2,310,000
------------
9,750,000
Financial Services - Miscellaneous 3.1%
American Express Company 64,500 3,870,000
First Data Corporation 16,000 802,000
MBNA Corporation 83,000 3,117,688
------------
7,789,688
Food - Miscellaneous Preparation 1.3%
Quaker Oats Company 39,000 3,180,938
Insurance - Brokers 1.5%
Marsh & McLennan Companies, Inc. 28,400 3,713,300
Insurance - Property/Casualty/Title 4.0%
The Allstate Corporation 96,000 3,864,000
American International Group, Inc. 63,444 6,217,512
------------
10,081,512
Internet - Network Security/Solutions 0.8%
Cisco Systems, Inc. (b) 35,500 1,912,563
Machinery - Farm 0.8%
Deere & Company 53,000 1,951,063
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
STRONG EQUITY INCOME FUND (Continued)
Shares or
Principal Value
Amount (Note 2)
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
Machinery - General Industrial 0.2%
Ingersoll-Rand Company 12,000 $ 453,000
Media - Books 0.9%
McGraw-Hill, Inc. 36,600 2,349,263
Media - Cable TV 3.2%
Comcast Corporation Class A (b) 38,000 1,548,500
Time Warner, Inc. 85,584 6,496,681
------------
8,045,181
Media - Newspapers 0.4%
Gannett Company, Inc. 17,000 986,000
Media - Radio/TV 0.9%
Viacom, Inc. Class B (b) 39,480 2,245,425
Medical - Drug/Diversified 0.9%
Johnson & Johnson 24,500 2,257,063
Medical - Ethical Drugs 4.7%
Eli Lilly & Company 13,000 1,161,875
Merck & Company, Inc. 30,000 2,698,125
Pfizer, Inc. 117,200 5,061,575
Schering-Plough Corporation 55,000 2,842,813
------------
11,764,388
Medical - Health Maintenance Organizations 0.9%
UnitedHealth Group, Inc. 22,000 2,406,250
Medical - Hospitals 0.9%
HCA-The Healthcare Company 54,000 2,156,625
Oil & Gas - Drilling 0.5%
Transocean Sedco Forex, Inc. 24,000 1,272,000
Oil & Gas - Field Services 1.2%
Halliburton Company 11,000 407,688
Schlumberger, Ltd. 34,000 2,588,250
------------
2,995,938
Oil & Gas - International Integrated 5.7%
Chevron Corporation 20,600 1,691,775
Exxon Mobil Corporation 101,138 9,020,245
Royal Dutch Petroleum Company 50,000 2,968,750
Texaco, Inc. 12,100 714,656
------------
14,395,426
Oil & Gas - Production/Pipeline 1.0%
Enron Corporation 31,000 2,543,938
Oil & Gas - United States Integrated 0.1%
USX-Marathon Group 13,500 367,031
Paper & Paper Products 0.3%
The Mead Corporation 26,800 775,525
Retail - Drug Stores 2.1%
CVS Corporation 39,000 2,064,563
Walgreen Company 72,000 3,285,000
------------
5,349,563
Retail - Major Discount Chains 2.6%
Target Corporation 69,000 1,906,125
Wal-Mart Stores, Inc. 102,400 4,646,400
------------
6,552,525
Retail - Restaurants 0.3%
McDonald's Corporation 27,000 837,000
Retail - Super/Mini Markets 0.5%
Safeway, Inc. (b) 22,000 1,203,125
Retail/Wholesale - Building Products 2.1%
The Home Depot, Inc. 76,650 $ 3,295,950
Lowe's Companies, Inc. 45,300 2,069,644
------------
5,365,594
Retail/Wholesale - Computer/Cellular 0.4%
RadioShack Corporation 16,000 954,000
Soap & Cleaning Preparations 1.3%
Clorox Company 35,000 1,561,875
The Procter & Gamble Company 24,000 1,714,500
------------
3,276,375
Telecommunications - Equipment 3.0%
Corning, Inc. 45,798 3,503,547
Motorola, Inc. 84,000 2,094,750
Nortel Networks Corporation 45,000 2,047,500
------------
7,645,797
Telecommunications - Services 2.0%
BellSouth Corporation 24,000 1,159,500
Sprint Corporation 28,600 729,300
Verizon Communications 36,500 2,110,156
WorldCom, Inc. (b) 44,472 1,056,210
------------
5,055,166
Tobacco 1.3%
Philip Morris Companies, Inc. 89,500 3,277,938
Utility - Electric Power 3.7%
Duke Energy Corporation 62,000 5,359,125
Exelon Corporation 32,575 1,958,572
The Southern Company 40,000 1,175,000
TXU Corporation 22,500 833,906
------------
9,326,603
Utility - Telephone 1.8%
SBC Communications, Inc. 76,949 4,438,995
--------------------------------------------------------------------------------------------------------
Total Common Stocks (Cost $157,024,939) 230,705,278
--------------------------------------------------------------------------------------------------------
Convertible Preferred Stocks 0.5%
The Seagram Company, Ltd. 7.50% 24,100 1,265,250
--------------------------------------------------------------------------------------------------------
Total Convertible Preferred Stocks (Cost $1,208,013) 1,265,250
--------------------------------------------------------------------------------------------------------
Convertible Bonds 0.2%
Loews Corporation Exchangeable Subordinated
Notes, 3.125%, Due 9/15/07 $ 500,000 415,625
--------------------------------------------------------------------------------------------------------
Total Convertible Bonds (Cost $500,000) 415,625
--------------------------------------------------------------------------------------------------------
Short-Term Investments (a) 5.6%
Commercial Paper 1.4%
Interest Bearing, Due Upon Demand
Firstar Bank, N.A., 6.29% 3,641,700 3,641,700
Sara Lee Corporation, 6.22% 39,400 39,400
Wisconsin Electric Power Company, 6.22% 24,200 24,200
------------
3,705,300
Repurchase Agreements 4.2%
ABN-AMRO Inc. (Dated 10/31/00), 6.56%,
Due 11/01/00 (Repurchase proceeds $10,501,913); Collateralized by:
United States Government & Agency Issues (e) 10,500,000 10,500,000
--------------------------------------------------------------------------------------------------------
Total Short-Term Investments (Cost $14,205,300) 14,205,300
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
Total Investments in Securities (Cost $172,938,252) 97.7% 246,591,453
Other Assets and Liabilities, Net 2.3% 5,794,911
--------------------------------------------------------------------------------------------------------
Net Assets 100.0% $252,386,364
========================================================================================================
</TABLE>
21
<PAGE>
<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) October 31, 2000
---------------------------------------------------------------------------------------------------------------
STRONG EQUITY INCOME FUND (continued)
---------------------------------------------------------------------------------------------------------------
WRITTEN OPTIONS ACTIVITY
---------------------------------------------------------------------------------------------------------------
Contracts Premiums
---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Options outstanding at beginning of year -- $ --
Options written during the year 400 62,548
Options closed (400) (62,548)
Options expired -- --
Options exercised -- --
-------- --------
Options outstanding at end of year -- $ --
======== ========
Closed options resulted in a capital gain of $25,248.
---------------------------------------------------------------------------------------------------------------
STRONG LARGE CAP GROWTH FUND
<CAPTION>
Shares or
Principal Value
Amount (Note 2)
---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks 89.8%
Aerospace - Defense 0.6%
Lockheed Martin Corporation 300,000 $ 10,755,000
Aerospace - Defense Equipment 0.3%
United Technologies Corporation 80,000 5,585,000
Banks - Money Center 3.6%
Bank of America Corporation 195,000 9,372,187
The Bank of New York Company, Inc. 450,000 25,903,125
Citigroup, Inc. 520,000 27,365,000
--------------
62,640,312
Banks - Super Regional 2.7%
Comerica, Inc. 180,000 10,856,250
Northern Trust Company 435,000 37,138,125
--------------
47,994,375
Beverages - Alcoholic 0.5%
Anheuser-Busch Companies, Inc. 200,000 9,150,000
Beverages - Soft Drinks 0.4%
PepsiCo, Inc. 150,000 7,265,625
Commercial Services - Miscellaneous 0.7%
Paychex, Inc. 218,200 12,369,212
Computer - Local Networks 1.9%
Brocade Communications Systems, Inc. (b) (f) 150,000 34,106,250
Computer - Manufacturers 1.0%
Sun Microsystems, Inc. (b) 165,000 18,294,375
Computer - Memory Devices 2.5%
EMC Communications Corporation (b) (f) 489,900 43,631,719
Computer Software - Desktop 2.5%
Microsoft Corporation (b) 635,000 43,735,625
Computer Software - Enterprise 4.9%
i2 Technologies, Inc. (b) 90,000 15,300,000
Oracle Systems Corporation (b) 200,000 6,600,000
Rational Software Corporation (b) 130,000 7,759,375
Siebel Systems, Inc. (b) 250,000 26,234,375
Veritas Software Corporation 220,000 31,023,437
--------------
86,917,187
Computer Software - Security 2.6%
Check Point Software Technologies, Ltd. (b) 290,000 45,928,750
Diversified Operations 0.9%
Pharmacia Corporation 280,000 $ 15,400,000
Electrical - Equipment 3.7%
Emerson Electric Company 125,000 9,179,687
General Electric Company 1,020,000 55,908,750
--------------
65,088,437
Electronics - Scientific Instruments 2.0%
PE Corporation-PE Biosystems Group 300,000 35,100,000
Electronics - Semiconductor Manufacturing 3.0%
Applied Micro Circuits Corporation (b) 360,000 27,495,000
PMC-Sierra, Inc. (b) (f) 155,000 26,272,500
--------------
53,767,500
Electronics Products - Miscellaneous 0.1%
Rockwell International Corporation 50,000 1,965,625
Energy - Other 1.9%
The AES Corporation (b) 200,000 11,300,000
Calpine Corporation (b) 275,000 21,707,812
--------------
33,007,812
Finance - Consumer/Commercial Loans 0.5%
Household International, Inc. 190,000 9,559,375
Finance - Investment Brokers 1.6%
Lehman Brothers Holdings, Inc. 20,000 1,290,000
Merrill Lynch & Company, Inc. 190,000 13,300,000
Morgan Stanley, Dean Witter & Company 170,000 13,653,125
--------------
28,243,125
Finance - Mortgage & Related Services 2.8%
Federal Home Loan Mortgage Corporation 430,000 25,800,000
Federal National Mortgage Association 300,000 23,100,000
--------------
48,900,000
Finance - Savings & Loan 2.7%
Golden West Financial Corporation 500,000 28,031,250
Washington Mutual, Inc. 455,000 20,020,000
--------------
48,051,250
Financial Services - Miscellaneous 1.2%
American Express Company 355,000 21,300,000
Insurance - Brokers 1.3%
Marsh & McLennan Companies, Inc. 180,000 23,535,000
Insurance - Property/Casualty/Title 2.5%
The Allstate Corporation 200,000 8,050,000
American International Group, Inc. 370,000 36,260,000
--------------
44,310,000
Internet - Internet Service Provider/Content 0.3%
RealNames Corporation Series E
(Acquired 10/03/00; Cost $5,000,000) (b) (d) 1,000,000 5,000,000
Internet - Network Security/Solutions 10.4%
Cisco Systems, Inc. (b) (f) 1,240,000 66,805,000
Juniper Networks, Inc. (b) (f) 600,000 117,000,000
--------------
183,805,000
Internet - Software 0.9%
BEA Systems, Inc. (b) 210,000 15,067,500
Media - Cable TV 0.5%
Comcast Corporation Class A (b) 225,000 9,168,750
Media - Radio/TV 0.1%
Viacom, Inc. Class B (b) 40,000 2,275,000
</TABLE>
22
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
STRONG LARGE CAP GROWTH FUND (continued)
Shares or
Principal Value
Amount (Note 2)
---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Medical - Biomedical/Genetics 1.7%
Genentech, Inc. (b) 110,000 $ 9,075,000
Millennium Pharmaceuticals, Inc. (b) 220,000 15,963,750
Serono SA ADR (b) 224,300 5,074,787
--------------
30,113,537
Medical - Drug/Diversified 0.8%
Abbott Laboratories 250,000 13,203,125
Medical - Ethical Drugs 2.3%
Alza Corporation (b) 164,200 13,289,938
American Home Products Corporation 100,000 6,350,000
Pfizer, Inc. 480,000 20,730,000
--------------
40,369,938
Medical - Health Maintenance Organizations 2.2%
UnitedHealth Group, Inc. 350,000 38,281,250
Medical - Hospitals 0.6%
HCA-The Healthcare Company 255,000 10,184,063
Medical - Products 0.3%
Baxter International, Inc. 65,000 5,342,188
Medical - Wholesale Drugs/Sundries 1.4%
Cardinal Health, Inc. 267,300 25,326,675
Oil & Gas - International Integrated 1.0%
Exxon Mobil Corporation 205,000 18,283,438
Oil & Gas - Machinery/Equipment 0.2%
Baker Hughes, Inc. 105,000 3,609,375
Oil & Gas - Production/Pipeline 4.4%
Coastal Corporation 300,000 22,631,250
Dynegy, Inc. 660,000 30,566,250
Enron Corporation 300,000 24,618,750
--------------
77,816,250
Oil & Gas - United States Exploration & Production 0.8%
Anadarko Petroleum Corporation 220,000 14,091,000
Paper & Paper Products 0.2%
International Paper Company 105,000 3,845,625
Retail - Department Stores 2.0%
Kohl's Corporation (b) (f) 660,000 35,763,750
Retail - Drug Stores 0.9%
Walgreen Company 350,000 15,968,750
Retail/Wholesale - Building Products 0.5%
The Home Depot, Inc. 200,000 8,600,000
Retail/Wholesale - Computer/Cellular 0.1%
RadioShack Corporation 30,000 1,788,750
Telecommunications - Equipment 8.2%
CIENA Corporation (b) 244,600 25,713,575
Corning, Inc. 335,000 25,627,500
JDS Uniphase Corporation (b) (f) 325,000 26,446,875
Qualcomm, Inc. (b) 50,000 3,255,469
SDL, Inc. (b) 250,000 64,812,500
--------------
145,855,919
Tobacco 0.1%
Philip Morris Companies, Inc. 50,000 $ 1,831,250
Transportation - Airline 0.2%
Southwest Airlines Company 138,100 3,935,850
Utility - Electric Power 1.3%
Duke Energy Corporation 225,000 19,448,438
Entergy Corporation 80,000 3,065,000
--------------
22,513,438
---------------------------------------------------------------------------------------------------------------
Total Common Stocks (Cost $1,147,628,795) 1,588,641,975
---------------------------------------------------------------------------------------------------------------
Convertible Preferred Stocks 0.2%
SEI Trust I Series A 6.25% 60,000 3,637,500
---------------------------------------------------------------------------------------------------------------
Total Convertible Preferred Stocks (Cost $3,000,000) 3,637,500
---------------------------------------------------------------------------------------------------------------
Convertible Bonds 2.1%
Juniper Networks, Inc. Subordinated Notes,
4.75%, Due 3/15/07 $ 3,750,000 5,231,250
ONI Systems Corporation Subordinated Notes,
5.00%, Due 10/15/05 10,000,000 10,487,500
Redback Networks, Inc. Subordinated Notes,
5.00%, Due 4/01/07 2,500,000 2,171,875
Veritas Software Corporation/Veritas Operating
Corporation Subordinated Notes,
1.856% Due 8/13/06 5,000,000 19,750,000
---------------------------------------------------------------------------------------------------------------
Total Convertible Bonds (Cost $19,671,168) 37,640,625
---------------------------------------------------------------------------------------------------------------
Short-Term Investments (a) 11.8%
Commmercial Paper 0.3%
Interest Bearing, Due Upon Demand
Firstar Bank, N.A., 6.29% 2,249,800 2,249,800
Sara Lee Corporation, 6.22% 2,136,700 2,136,700
Wisconsin Electric Power Company, 6.22% 1,406,000 1,406,000
--------------
5,792,500
Repurchase Agreements 11.5%
ABN-AMRO Inc. (Dated 10/31/00), 6.56%,
Due 11/1/00 (Repurchase proceeds
$203,337,046); Collateralized by:
United States Government &
Agency Issues (e) 203,300,000 203,300,000
---------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (Cost $209,092,500) 209,092,500
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
Total Investments in Securities
(Cost $1,379,392,463) 103.9% 1,839,012,600
Other Assets and Liabilities, Net (3.9%) (69,582,238)
---------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $ 1,769,430,362
---------------------------------------------------------------------------------------------------------------
WRITTEN OPTIONS ACTIVITY
---------------------------------------------------------------------------------------------------------------
Contracts Premiums
---------------------------------------------------------------------------------------------------------------
Options outstanding at beginning of year 8,530 $ 7,482,173
Options written during the year 139,390 249,197,898
Options closed (135,041) (241,245,237)
Options expired -- --
Options exercised (9) (15,932)
------------- --------------
Options outstanding at end of year 12,870 $ 15,418,902
============= ==============
Closed options resulted in capital loss of $36,258,303.
</TABLE>
23
<PAGE>
<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) October 31, 2000
------------------------------------------------------------------------------------------------
STRONG LARGE CAP GROWTH FUND (continued)
------------------------------------------------------------------------------------------------
WRITTEN CALL OPTIONS DETAIL
------------------------------------------------------------------------------------------------
Contracts
(100 shares Value
per contract) (Note 2)
------------------------------------------------------------------------------------------------
<S> <C> <C>
Brocade Communications Systems, Inc.
(Strike Price is $210. Expiration date is 12/15/00.
Premium received is $1,997,533.) 800 ($ 2,705,000)
Cisco Systems, Inc.
(Strike Price is $50. Expiration date is 11/17/00.
Premium received is $360,988.) 500 (315,625)
(Strike Price is $50. Expiration date is 12/15/00.
Premium received is $1,293,956.) 2,000 (1,575,000)
EMC Communications Corporation
(Strike Price is $85. Expiration date is 12/15/00.
Premium received is $3,797,811.) 4,850 (5,153,125)
JDS Uniphase Corporation
(Strike Price is $90. Expiration date is 11/17/00.
Premium received is $482,905.) 550 (175,313)
(Strike Price is $75. Expiration date is 12/15/00.
Premium received is $1,776,691.) 1,500 (1,968,750)
Juniper Networks, Inc.
(Strike Price is $220. Expiration date is 11/17/00.
Premium received is $1,684,857.) 800 (750,000)
(Strike Price is $180. Expiration date is 12/15/00.
Premium received is $1,542,479.) 500 (1,850,000)
Kohl's Corporation
(Strike Price is $60. Expiration date is 1/19/01.
Premium received is $71,638.) 120 (44,250)
PMC-Sierra, Inc.
(Strike Price is $155. Expiration date is 12/15/00.
Premium received is $2,410,044.) 1,250 (3,468,750)
-------- ------------
12,870 ($18,005,813)
======== ============
-----------------------------------------------------------------------------------------------
STRONG LIMITED RESOURCES FUND
Shares or
Principal Value
Amount (Note 2)
-----------------------------------------------------------------------------------------------
Common Stocks 95.8%
Building Products - Wood 3.4%
Weyerhaeuser Company 3,500 $ 164,281
Willamette Industries, Inc. 6,200 225,138
-----------
389,419
Chemicals - Basic 1.5%
The Dow Chemical Company 5,500 168,437
Chemicals - Specialty 4.4%
Cabot Corporation 13,000 286,000
OM Group, Inc. 2,500 115,625
Praxair, Inc. 2,500 93,125
-----------
494,750
Diversified Operations 3.1%
E.I. Du Pont de Nemours & Company 7,800 353,925
Electrical - Control Instruments 0.4%
SatCon Technology Corporation (b) 2,000 51,000
Metal Ores - Non Ferrous 2.6%
Alcoa, Inc. 6,200 177,863
Phelps Dodge Corporation 2,500 116,875
-----------
294,738
Oil & Gas - Canadian Exploration & Production 3.3%
Gulf Canada Resources, Ltd. ADR (b) 52,000 221,000
Talisman Energy, Inc. (b) 5,000 155,312
-----------
376,312
Oil & Gas - Drilling 7.4%
ENSCO International, Inc. 6,000 $ 199,500
Nabors Industries, Inc. (b) 4,500 229,050
Rowan Companies, Inc. (b) 6,500 163,719
Transocean Sedco Forex, Inc. 4,606 244,118
-----------
836,387
Oil & Gas - Field Services 2.4%
Halliburton Company 3,000 111,188
Schlumberger, Ltd. 2,100 159,863
-----------
271,051
Oil & Gas - International Integrated 12.1%
Chevron Corporation 3,400 279,225
Exxon Mobil Corporation 6,500 579,719
Royal Dutch Petroleum Company 8,600 510,625
-----------
1,369,569
Oil & Gas - Machinery/Equipment 8.4%
Cooper Cameron Corporation (b) 3,500 190,750
Grant Prideco, Inc. (b) 13,000 241,312
National-Oilwell, Inc. (b) 7,000 204,750
Smith International, Inc. (b) 2,400 169,200
Weatherford International, Inc. (b) 4,000 146,000
-----------
952,012
Oil & Gas - Production/Pipeline 9.4%
Coastal Corporation 5,000 377,188
El Paso Energy Corporation 3,500 219,406
Enron Corporation 2,400 196,950
Western Gas Resources, Inc. 12,500 274,219
-----------
1,067,763
Oil & Gas - Refining/Marketing 0.4%
Syntroleum Corporation (b) 2,500 48,750
Oil & Gas - United States Exploration & Production 15.7%
Anadarko Petroleum Corporation 7,000 448,350
Apache Corporation 4,000 221,250
Devon Energy Corporation 4,000 201,600
EOG Resources, Inc. 8,000 315,000
Harken Energy Corporation (b) 60,000 26,250
McMoRan Exploration Company (b) 6,500 77,675
Noble Affiliates, Inc. 3,500 128,406
Ocean Energy, Inc. (b) 15,000 208,125
Spinnaker Exploration Company (b) 5,000 151,250
-----------
1,777,906
Oil & Gas - United States Integrated 7.4%
Amerada Hess Corporation 5,000 310,000
Transmontaigne, Inc. (b) 10,000 38,750
USX-Marathon Group 18,200 494,812
-----------
843,562
Paper & Paper Products 1.3%
Kimberly-Clark Corporation 2,200 145,200
Steel - Producers 0.3%
USX-US Steel Group 2,000 31,875
Utility - Electric Power 5.3%
CMS Energy Corporation 9,000 243,000
Duke Energy Corporation 3,100 267,956
Unisource Energy Corporation 6,000 89,625
-----------
600,581
Utility - Gas Distribution 7.0%
Equitable Resources, Inc. 6,000 348,000
Oneok, Inc. 4,500 178,312
Questar Corporation 10,000 270,625
-----------
796,937
------------------------------------------------------------------------------------------------
Total Common Stocks (Cost $9,116,130) 10,870,174
------------------------------------------------------------------------------------------------
</TABLE>
24
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
STRONG LIMITED RESOURCES FUND (continued)
Shares or
Principal Value
Amount (Note 2)
-------------------------------------------------------------------------------------------
<S> <C> <C>
Short-Term Investments (a) 2.7%
Commercial Paper
Interest Bearing, Due Upon Demand
Firstar Bank, N.A., 6.29% $ 304,700 $ 304,700
Wisconsin Electric Power Company, 6.22% 100 100
-------------------------------------------------------------------------------------------
Total Short-Term Investments (Cost $304,800) 304,800
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
Total Investments in Securities (Cost $9,420,930) 98.5% 11,174,974
Other Assets and Liabilities, Net 1.5% 172,842
-------------------------------------------------------------------------------------------
Net Assets 100.0% $11,347,816
===========================================================================================
-------------------------------------------------------------------------------------------
STRONG BLUE CHIP 100 FUND
Shares or
Principal Value
Amount (Note 2)
-------------------------------------------------------------------------------------------
Common Stocks 99.0%
Aerospace - Defense 0.3%
The Boeing Company 30,800 $ 2,088,625
Aerospace - Defense Equipment 0.2%
United Technologies Corporation 15,800 1,103,037
Auto Manufacturers - Domestic 0.5%
Ford Motor Company 64,900 1,695,512
General Motors Corporation 18,300 1,136,888
-------------
2,832,400
Banks - Money Center 6.5%
Bank of America Corporation 56,418 2,711,590
The Bank of New York Company, Inc. 25,400 1,462,087
The Chase Manhattan Corporation 244,700 11,133,850
Citigroup, Inc. 469,966 24,731,961
-------------
40,039,488
Banks - Super Regional 0.9%
Bank One Corporation 39,640 1,446,860
FleetBoston Financial Corporation 31,000 1,178,000
Wells Fargo Company 56,400 2,612,025
-------------
5,236,885
Beverages - Alcoholic 0.2%
Anheuser-Busch Companies, Inc. 30,900 1,413,675
Beverages - Soft Drinks 1.2%
The Coca-Cola Company 84,800 5,119,800
PepsiCo, Inc. 49,500 2,397,656
-------------
7,517,456
Computer - Manufacturers 7.2%
Compaq Computer Corporation 58,400 1,775,944
Dell Computer Corporation (b) 88,800 2,619,600
Hewlett-Packard Company 68,400 3,176,325
International Business Machines Corporation 60,100 5,919,850
Palm, Inc. (b) 19,100 1,023,044
Sun Microsystems, Inc. (b) 270,100 29,947,337
-------------
44,462,100
Computer - Memory Devices 6.6%
EMC Communications Corporation (b) 264,600 23,565,937
Network Appliance, Inc. (b) 145,700 17,338,300
-------------
40,904,237
Computer - Services 0.2%
Automatic Data Processing, Inc. 21,600 1,410,750
Computer Software - Desktop 2.0%
Microsoft Corporation (b) 180,100 12,404,387
Computer Software - Enterprise 11.2%
i2 Technologies, Inc. (b) 56,800 $ 9,656,000
Oracle Systems Corporation (b) 432,800 14,282,400
Siebel Systems, Inc. (b) 209,200 21,952,925
Veritas Software Corporation 163,800 23,098,359
-------------
68,989,684
Cosmetics - Personal Care 0.2%
The Gillette Company 36,200 1,262,475
Diversified Operations 1.4%
E.I. Du Pont de Nemours & Company 35,800 1,624,425
Minnesota Mining & Manufacturing Company 13,600 1,314,100
Pharmacia Corporation 44,416 2,442,880
Tyco International, Ltd. 57,600 3,265,200
-------------
8,646,605
Electrical - Equipment 5.0%
General Electric Company 564,675 30,951,248
Electronics - Semiconductor Equipment 1.7%
Applied Materials, Inc. (b) 202,800 10,773,750
Electronics - Semiconductor Manufacturing 4.1%
Analog Devices, Inc. (b) 12,200 793,000
Intel Corporation 229,800 10,341,000
Texas Instruments, Inc. 291,000 14,277,187
-------------
25,411,187
Finance - Investment Brokers 1.3%
The Charles Schwab Corporation 47,300 1,661,412
The Goldman Sachs Group, Inc. 15,400 1,537,113
Merrill Lynch & Company, Inc. 27,600 1,932,000
Morgan Stanley, Dean Witter & Company 38,600 3,100,062
-------------
8,230,587
Finance - Mortgage & Related Services 0.7%
Federal Home Loan Mortgage Corporation 23,700 1,422,000
Federal National Mortgage Association 34,600 2,664,200
-------------
4,086,200
Financial Services - Miscellaneous 0.4%
American Express Company 45,600 2,736,000
Insurance - Brokers 2.3%
Marsh & McLennan Companies, Inc. 109,300 14,290,975
Insurance - Property/Casualty/Title 2.8%
American International Group, Inc. 178,962 17,538,276
Internet - Internet Service Provider/Content 0.8%
America Online, Inc. (b) 78,800 3,973,884
Yahoo! Inc. (b) 18,700 1,096,288
-------------
5,070,172
Internet - Network Security/Solutions 5.5%
Cisco Systems, Inc. (b) 242,900 13,086,238
Juniper Networks, Inc. (b) 100,800 19,656,000
VeriSign, Inc. (b) 6,600 871,200
-------------
33,613,438
Internet - Software 0.2%
Ariba, Inc. (b) 8,400 1,061,550
Leisure - Services 0.4%
The Walt Disney Company (b) 71,600 2,564,175
Media - Cable TV 2.7%
AT&T Corporation - Liberty Media Group
Class A (b) 81,400 1,465,200
Comcast Corporation Class A (b) 31,000 1,263,250
Time Warner, Inc. 181,700 13,792,847
-------------
16,521,297
</TABLE>
25
<PAGE>
<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENT IN SECURITIES (continued) October 31, 2000
----------------------------------------------------------------------------------
STRONG BLUE CHIP 100 FUND (continued)
Shares or
Principal Value
Amount (Note 2)
-----------------------------------------------------------------------------------
<S> <C> <C>
Media - Radio/Tv 0.7%
Clair Channel Communications, Inc. (b) 19,900 $ 1,195,244
Viscom, Inc. Class B (b) 52,074 2,961,709
Medical - Biomedical/Genetics 0.6%
Amgen, Inc. (b) 25,200 2,099,400
Genentech, Inc. (b) 17,800 1,469,500
-----------
3,507,900
Medical - Drug/Diversified 3.3%
Abbott Laboratories 53,200 2,809,625
Bristol-Myers Squibb Company 67,100 4,066,906
Johnson & Johnson 147,600 19,597,650
-----------
20,496,101
Medical - Ethical Drugs 4.1%
American Home Products Corporation 44,600 2,832,100
Eli Lilly & Company 38,600 3,449,075
Merck & Company, Inc. 78,700 7,078,081
Pfizer, Inc. 216,125 9,333,898
Schering-Plough Corporation 50,200 2,594,713
-----------
25,200,667
Medical - Instruments 0.4%
Medtronic, Inc. 41,000 2,226,813
Oil & Gas - Field Services 4.3%
Schlumberger, Ltd. 345,100 26,270,738
Oil & Gas - International Integrated 2.2%
Chevron Corporation 22,400 1,039,600
Exxon Mobil Corporation 119,155 10,627,137
Texaco, Inc. 18,800 1,110,375
-----------
13,577,111
Oil & Gas - Production/ Pipeline 0.2%
Enron Corporation 25,300 2,076,101
Paper & Paper Products 0.2%
Kimberley-Clark Corporation 18,400 1,214,400
Retail - Drug Stores 0.3%
Walgreen Company 34,600 1,575,625
Retail - Major Discount Chains 2.4%
Wal-Mart Stores, Inc. 129,700 14,960,138
Retail - Restaurants 0.2%
McDonald's Corporation 45,400 1,407,400
Retail/Wholesale - Building Products 0.6%
The Home Depot, Inc. 79,400 9,414,200
Soup & Cleaning Preparations 0.7%
Colgate Palmolive Company 19,800 1,163,440
The Procter & Gamble Company 44,800 3,200,400
-----------
4,363,848
Telecommunications - Cellular 0.7%
AT&T Wireless Group (b) 78,800 1,965,075
Nextel Communications, Inc. Class A (b) 26,100 1,001,219
Sprint Corporation - PSC Group (b) 31,800 1,212,375
-----------
4,180,669
Telecommunications - Equipment 0.8%
CIEMA Corporation (b) 9,700 1,019,713
Corning, Inc. 210,200 16,060,300
JDS Uniphase Corporation (b) 168,100 13,679,199
Lucent Technologies, Inc. 114,500 2,669,281
Motorola, Inc. 74,700 1,862,831
Nortel Networks Corporation 102,000 4,641,000
Qualcomm, Inc. (b) 25,600 1,666,800
-----------
41,619,083
Telecommunicatons - Services 2.7%
AT&T Corporation 128,837 2,987,408
BellSouth Corporation 64,200 3,101,663
Qwest Communications International, Inc. (b) 57,060 2,774,542
WorldCom, Inc. (b) 93,162 5,385,350
94,385 2,340,661
-----------
16,589,644
Tobacco 0.5%
Philip Morris Companies, Inc. 77,100 2,823,700
Transportation - Air Freight 0.4%
United Parcel Service, Inc. Class B 39,200 2,381,400
Shares or
Principal Value
Amount (Note 2)
--------------------------------------------------------------------------------------------
<S> <C> <C>
Utility - Telephone 1.1%
SBC Communications, Inc. 115,928 6,687,597
-------------------------------------------------------------------------------------------
Total Common Stocks (Cost $489,638,969) 609,981,976
-------------------------------------------------------------------------------------------
Short-Term Investments (a) 2.4%
Commercial Paper 0.5%
Interest Bearing, Due Upon Demand
Firstar Bank, N.A., 6.29% $ 2,214,700 2,214,700
Sara Lee Corporation, 6.22% 896,000 896,000
Wisconsin Electric Power Company, 6.22% 1,000 1,000
-------------
3,111,700
Repurchase Agreements 1.9%
ABN-AMRO Inc. (Dated 10/31/00), 6.56%,
Due 11/01/00 (Repurchase proceeds
$12,002,187); Collateralized by:
United States Government &
Agency Issues (e) 12,000,000 12,000,000
-------------------------------------------------------------------------------------------
Total Short-Term Investments (Cost $15,111,700) 15,111,700
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
Total Investments in Securities (Cost $504,750,669) 101.4% 625,093,676
Other Assets and Liabilities, Net (1.4%) (8,687,022)
-------------------------------------------------------------------------------------------
Net Assets 100.0% $ 616,406,654
===========================================================================================
-------------------------------------------------------------------------------------------
STRONG GROWTH AND INCOME FUND
<CAPTION>
Shares or
Principal Value
Amount (Note 2)
--------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks 98.0%
Aerospace - Defense 1.7%
The Boeing Company 233,000 $ 15,800,312
Lockheed Martin Corporation 160,000 5,736,000
------------
21,536,312
Aerospace - Defense Equipment 1.4%
United Technologies Corporation 244,000 17,034,250
Banks - Money Center 4.9%
The Bank of New York Company, Inc. 310,000 17,844,375
The Chase Manhattan Corporation 117,000 5,323,500
Citigroup, Inc. 700,333 36,855,024
------------
60,022,899
Banks - Super Regional 0.9%
State Street Corporation 53,000 6,611,220
Wells Fargo Company 110,000 5,094,375
------------
11,705,595
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
STRONG GROWTH AND INCOME FUND (continued)
Shares or
Principal Value
Amount (Note 2)
--------------------------------------------------------------------------------
<S> <C> <C>
Beverages - Alcoholic 2.4%
Anheuser-Busch Companies, Inc. 632,000 $28,914,000
Beverages - Soft Drinks 2.2%
The Coca-Cola Company 210,000 12,678,750
PepsiCo, Inc. 285,000 13,804,687
-----------
26,483,437
Commercial Services - Advertising 0.3%
The Interpublic Group of Companies, Inc. 73,900 3,173,081
Computer - Local Networks 2.8%
Brocade Communications Systems, Inc. (b) 115,000 26,148,125
McDATA Corporation (b) 96,000 8,002,500
-----------
34,150,625
Computer - Manufacturers 3.5%
Dell Computer Corporation (b) 385,000 11,357,500
International Business Machines Corporation 76,900 7,574,650
Sun Microsystems, Inc. (b) 225,000 24,946,875
-----------
43,879,025
Computer - Memory Devices 4.5%
EMC Communications Corporation (b) 455,000 40,523,437
Network Appliance, Inc. (b) 123,000 14,637,000
-----------
55,160,437
Computer Software - Desktop 2.9%
Microsoft Corporation (b) 515,000 35,470,625
Computer Software - Enterprise 7.1%
i2 Technologies, Inc. (b) 72,000 12,240,000
Oracle Systems Corporation (b) 786,000 25,938,000
Siebel Systems, Inc. (b) 307,000 32,215,812
Veritas Software Corporation 121,000 17,062,891
-----------
87,456,703
Diversified Operations 2.0%
Pharmacia Corporation 174,000 9,570,000
Tyco International, Ltd. 258,000 14,625,375
-----------
24,195,375
Electrical - Equipment 5.7%
Emerson Electric Company 140,000 10,281,250
General Electric Company 1,110,500 60,869,281
-----------
71,150,531
Electronics - Semiconductor Manufacturing 4.7%
Applied Micro Circuits Corporation (b) 98,000 7,484,750
Intel Corporation 450,000 20,250,000
STMicroelectronics NV 274,000 14,230,875
Texas Instruments, Inc. 101,000 4,955,312
Xilinx, Inc. (b) 153,500 11,119,156
-----------
58,040,093
Finance - Consumer/Commercial Loans 1.0%
Household International, Inc. 252,000 12,678,750
Finance - Investment Brokers 0.7%
Morgan Stanley, Dean Witter & Company 112,000 8,995,000
Finance - Mortgage & Related Services 2.7%
Federal Home Loan Mortgage Corporation 545,000 32,700,000
Financial Services - Miscellaneous 2.1%
American Express Company 273,000 16,380,000
MBNA Corporation 235,000 8,827,187
-----------
25,207,187
Insurance - Brokers 1.4%
Marsh & McLennan Companies, Inc. 131,000 17,128,250
Insurance - Property/Casualty/Title 3.5%
The Allstate Corporation 364,000 $14,651,000
American International Group, Inc. 243,000 23,814,000
XL Capital, Ltd. Class A 52,000 3,997,500
-----------
42,462,500
Internet - Internet Service Provider/Content 1.2%
America Online, Inc. (b) 292,000 14,725,560
Internet - Network Security/Solutions 6.8%
Cisco Systems, Inc. (b) 775,000 41,753,125
Juniper Networks, Inc. (b) 214,500 41,827,500
-----------
83,580,625
Internet - Software 1.2%
Ariba, Inc. (b) 57,000 7,203,375
BEA Systems, Inc. (b) 108,000 7,749,000
-----------
14,952,375
Media - Books 0.4%
McGraw-Hill, Inc. 74,600 4,788,387
Media - Cable TV 1.6%
Comcast Corporation Class A (b) 185,000 7,538,750
Time Warner, Inc. 165,000 12,525,150
-----------
20,063,900
Media - Radio/TV 0.7%
Viacom, Inc. Class B (b) 157,225 8,942,172
Medical - Drug/Diversified 1.1%
Abbott Laboratories 245,000 12,939,063
Medical - Ethical Drugs 7.6%
American Home Products Corporation 265,000 16,827,500
Merck & Company, Inc. 189,000 16,998,188
Pfizer, Inc. 935,000 40,380,313
Schering-Plough Corporation 385,000 19,899,688
-----------
94,105,689
Medical - Health Maintenance Organizations 1.0%
UnitedHealth Group, Inc. 108,000 11,812,500
Medical - Hospitals 0.9%
HCA-The Healthcare Company 265,000 10,583,438
Oil & Gas - Field Services 1.1%
Schlumberger, Ltd. 182,000 13,854,750
Oil & Gas - International Integrated 3.8%
Chevron Corporation 91,000 7,473,375
Exxon Mobil Corporation 323,000 28,807,563
Royal Dutch Petroleum Company 169,000 10,034,375
-----------
46,315,313
Oil & Gas - Production/Pipeline 2.1%
Dynegy, Inc. 332,000 15,375,750
Enron Corporation 124,000 10,175,750
-----------
25,551,500
Retail - Drug Stores 0.5%
Walgreen Company 136,800 6,241,500
Retail - Major Discount Chains 1.6%
Wal-Mart Stores, Inc. 427,000 19,375,125
Retail/Wholesale - Building Products 0.6%
The Home Depot, Inc. 178,500 7,675,500
</TABLE>
27
<PAGE>
<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) October 31, 2000
-----------------------------------------------------------------------------
STRONG GROWTH AND INCOME FUND(continued)
Shares or
Principal Value
Amount (Note 2)
-----------------------------------------------------------------------------
<S> <C> <C>
Soap & Cleaning Preparations 1.3%
Colgate Palmolive Company 70,000 $ 4,113,200
The Procter & Gamble Company 170,000 12,144,375
--------------
16,257,575
Telecommunications - Equipment 1.5%
Nortel Networks Corporation 295,000 13,422,500
SDL, Inc. (b) 19,500 5,055,375
--------------
18,477,875
Telecommunications - Services 0.3%
McLeod, Inc. (b) 204,000 3,927,000
Utility - Electric Power 3.1%
Duke Energy Corporation 441,000 38,118,938
Utility - Telephone 1.2%
SBC Communications, Inc. 257,000 14,825,688
-----------------------------------------------------------------------------
Total Common Stocks (Cost $875,194,101) 1,204,659,148
-----------------------------------------------------------------------------
Convertible Bonds 1.4%
Veritas Software Corporation Subordinated
Notes, 5.25%, Due 11/01/04 $ 1,165,000 17,304,619
-----------------------------------------------------------------------------
Total Convertible Bonds (Cost $16,597,982) 17,304,619
-----------------------------------------------------------------------------
Short-Term Investments (a) 2.1%
Commercial Paper 0.1%
Interest Bearing, Due Upon Demand
Firstar Bank, N.A., 6.29% 1,586,700 1,586,700
Sara Lee Corporation, 6.22% 100 100
--------------
1,586,800
Repurchase Agreements 2.0%
Barclays Capital Markets (Dated 10/31/00),
6.53%, Due 11/01/00 (Repurchase proceeds
$24,504,444); Collateralized by: United States
Treasury Bonds (e) 24,500,000 24,500,000
-----------------------------------------------------------------------------
Total Short-Term Investments (Cost $26,086,800) 26,086,800
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Total Investments in Securities (Cost $917,878,883) 101.5% 1,248,050,567
Other Assets and Liabilities, Net (1.5%) (18,836,645)
-----------------------------------------------------------------------------
Net Assets 100.0% $1,229,213,922
=============================================================================
WRITTEN OPTIONS ACTIVITY
-----------------------------------------------------------------------------
Contracts Premiums
-----------------------------------------------------------------------------
Options outstanding at beginning of year -- $ --
Options written during the year 600 443,503
Options closed (600) (443,503)
Options expired -- --
Options exercised -- --
---- ---------
Options outstanding at end of year -- $ --
==== =========
Closed options resulted in a capital loss of $158,297.
</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 or segregated to cover margin
requirements for futures contracts.
(d) Restricted security.
(e) See Note 2(I) of Notes to Financial Statements.
(f) All or a portion of these securities are held in conjunction with open
written option contracts.
(g) All or a portion of security is when-issued.
Percentages are stated as a percent of net assets.
See Notes to Financial Statements.
28
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
October 31, 2000
<TABLE>
<CAPTION>
(In Thousands, Except Per Share Amounts)
Strong American Strong Balanced Strong Equity Strong Large Cap Strong Limited
Utilities Fund Fund Income Fund Growth Fund Resources Fund
-------------- --------------- ------------- ---------------- --------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments in Securities, at Value
(Including Repurchase Agreements of $15,400,
$5,000, $10,500, $203,300 and $0, respectively)
(Cost of $205,212, $317,671, $172,938,
$1,379,392 and $9,421, respectively) $ 259,250 $ 388,688 $ 246,591 $1,839,012 $ 11,175
Receivable for Securities Sold 2,733 5,006 20,371 41,822 165
Receivable for Fund Shares Sold 583 76 43 853 10
Dividends and Interest Receivable 479 3,215 165 579 9
Paydown Receivable -- 14 -- -- --
Other Assets 8 29 4 31 8
---------- ---------- ---------- ---------- ----------
Total Assets 263,053 397,028 267,174 1,882,297 11,367
Liabilities:
Payable for Securities and Options Purchased 1,967 25,084 14,604 94,586 --
Written Options, at Value
(Premiums Received of $0, $0, $0, $15,419 and
$0, respectively) -- -- -- 18,006 --
Payable for Fund Shares Redeemed 752 30 121 32 7
Variation Margin Payable -- 271 -- -- --
Accrued Operating Expenses and Other Liabilities 52 108 63 243 12
---------- ---------- ---------- ---------- ----------
Total Liabilities 2,771 25,493 14,788 112,867 19
---------- ---------- ---------- ---------- ----------
Net Assets $ 260,282 $ 371,535 $ 252,386 $1,769,430 $ 11,348
========== ========== ========== ========== ==========
Net Assets Consist of:
Capital Stock (par value and paid-in capital) $ 195,185 $ 281,073 $ 173,868 $1,140,021 $ 10,619
Undistributed Net Investment Income 301 1,279 32 -- --
Accumulated Net Realized Gain (Loss) 10,758 17,472 4,833 172,376 (1,025)
Net Unrealized Appreciation 54,038 71,711 73,653 457,033 1,754
---------- ---------- ---------- ---------- ----------
Net Assets $ 260,282 $ 371,535 $ 252,386 $1,769,430 $ 11,348
========== ========== ========== ========== ==========
Capital Shares Outstanding
(Unlimited Number Authorized) 15,037 15,000 11,669 38,900 1,033
Net Asset Value Per Share $ 17.31 $ 24.77 $ 21.63 $ 45.49 $ 10.98
========== ========== ========== ========== ==========
</TABLE>
See Notes to Financial Statements.
29
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
--------------------------------------------------------------------------------
October 31, 2000
<TABLE>
<CAPTION>
(In Thousands, Except As Noted)
Strong Blue Chip
100 Fund
----------------
<S> <C>
Assets:
Investments in Securities, at Value (Cost of $504,751) $ 625,094
Receivable for Fund Shares Sold 350
Dividends and Interest Receivable 285
Other Assets 4
------------
Total Assets 625,733
Liabilities:
Payable for Securities Purchased 8,973
Payable for Fund Shares Redeemed 176
Accrued Operating Expenses and Other Liabilities 177
------------
Total Liabilities 9,326
------------
Net Assets $ 616,407
============
Net Assets Consist of:
Capital Stock (par value and paid-in capital) $ 470,638
Undistributed Net Realized Gain 25,426
Net Unrealized Appreciation 120,343
------------
Net Assets $ 616,407
============
Investor Class ($ and shares in full)
Net Assets $616,373,518
Capital Shares Outstanding (Unlimited Number Authorized) 29,365,655
Net Asset Value Per Share $ 20.99
============
Advisor Class ($ and shares in full)
Net Assets $ 33,136
Capital Shares Outstanding (Unlimited Number Authorized) 1,582
Net Asset Value Per Share $ 20.94
============
</TABLE>
See Notes to Financial Statements.
30
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (continued)
--------------------------------------------------------------------------------
October 31, 2000
<TABLE>
<CAPTION>
(In Thousands, Except As Noted)
Strong Growth
and Income Fund
---------------
<S> <C>
Assets:
Investments in Securities, at Value (Cost of $917,879) $ 1,248,051
Receivable for Securities Sold 5,089
Receivable for Fund Shares Sold 901
Dividends and Interest Receivable 381
Other Assets 11
--------------
Total Assets 1,254,433
Liabilities:
Payable for Securities Purchased 24,574
Payable for Fund Shares Redeemed 312
Accrued Operating Expenses and Other Liabilities 333
--------------
Total Liabilities 25,219
--------------
Net Assets $ 1,229,214
==============
Net Assets Consist of:
Capital Stock (par value and paid-in capital) $ 891,560
Undistributed Net Realized Gain 7,482
Net Unrealized Appreciation 330,172
--------------
Net Assets $ 1,229,214
==============
Investor Class ($ and shares in full)
Net Assets $1,227,986,733
Capital Shares Outstanding (Unlimited Number Authorized) 43,337,637
Net Asset Value Per Share $ 28.34
==============
Institutional Class ($ and shares in full)
Net Assets $ 772,125
Capital Shares Outstanding (Unlimited Number Authorized) 27,174
Net Asset Value Per Share $ 28.41
==============
Advisor Class ($ and shares in full)
Net Assets $ 455,064
Capital Shares Outstanding (Unlimited Number Authorized) 16,084
Net Asset Value Per Share $ 28.29
==============
</TABLE>
31
See Notes to Financial Statements.
<PAGE>
STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------
For the Year Ended October 31, 2000
<TABLE>
<CAPTION>
(In Thousands)
Strong Strong Strong Strong
American Strong Equity Large Cap Limited
Utilities Balanced Income Growth Resources
Fund Fund Fund Fund Fund
--------- -------- -------- ---------- ---------
<S> <C> <C> <C> <C> <C>
Income:
Dividends (net of foreign withholding taxes
of $84, $16, $13, $62 and $1, respectively) $ 6,689 $ 2,647 $ 2,424 $ 5,326 $ 95
Interest 590 12,894 444 5,167 26
------- -------- ------- -------- -------
Total Income 7,279 15,541 2,868 10,493 121
Expenses:
Investment Advisory Fees 1,282 2,314 1,370 10,937 63
Administrative Fees 368 615 398 3,096 15
Custodian Fees 28 18 10 83 2
Shareholder Servicing Costs 422 665 340 1,982 22
Reports to Shareholders 92 163 105 534 9
Federal and State Registration Fees 25 32 40 53 23
Other 30 42 41 137 12
------- -------- ------- -------- -------
Total Expenses before Waivers, Absorptions
and Fees Paid Indirectly by Advisor 2,247 3,849 2,304 16,822 146
Involuntary Expense Waivers and Absorptions -- -- -- -- (5)
Fees Paid Indirectly by Advisor (2) (3) -- (32) --
------- -------- ------- -------- -------
Expenses, Net 2,245 3,846 2,304 16,790 141
------- -------- ------- -------- -------
Net Investment Income (Loss) 5,034 11,695 564 (6,297) (20)
Realized and Unrealized Gain (Loss):
Net Realized Gain (Loss) on:
Investments 12,005 19,389 4,892 233,307 107
Futures Contracts and Options -- (928) (110) (36,061) --
------- -------- ------- -------- -------
Net Realized Gain 12,005 18,461 4,782 197,246 107
Net Change in Unrealized Appreciation/Depreciation on:
Investments 11,819 (11,900) 10,740 154,519 1,332
Futures Contracts and Options -- 967 -- (3,979) --
------- -------- ------- -------- -------
Net Change in Unrealized Appreciation/Depreciation 11,819 (10,933) 10,740 150,540 1,332
------- -------- ------- -------- -------
Net Gain on Investments 23,824 7,528 15,522 347,786 1,439
------- -------- ------- -------- -------
Net Increase in Net Assets
Resulting from Operations $28,858 $ 19,223 $16,086 $341,489 $ 1,419
======= ======== ======= ======== =======
</TABLE>
See Notes to Financial Statements.
32
<PAGE>
STATEMENTS OF OPERATIONS (continued)
--------------------------------------------------------------------------------
For the Year Ended October 31, 2000
<TABLE>
<CAPTION>
(In Thousands)
Strong
Blue Chip
100 Fund
---------
<S> <C>
Income:
Dividends (net of foreign withholding taxes of $2) $ 3,433
Interest 362
--------
Total Income 3,795
Expenses:
Investment Advisory Fees 3,429
Administrative Fees - Investor Class 1,039
Custodian Fees 40
Shareholder Servicing Costs - Investor Class 1,463
Reports to Shareholders - Investor Class 436
Transfer Agency Banking Charges - Investor Class 7
Other 124
--------
Total Expenses 6,538
--------
Net Investment Loss (2,743)
Realized and Unrealized Gain (Loss):
Net Realized Gain on Investments 31,778
Net Change in Unrealized Appreciation/Depreciation on Investments 42,149
--------
Net Gain on Investments 73,927
--------
Net Increase in Net Assets Resulting from Operations $ 71,184
========
</TABLE>
See Notes to Financial Statements.
33
<PAGE>
STATEMENTS OF OPERATIONS (continued)
--------------------------------------------------------------------------------
For the Year Ended October 31, 2000
<TABLE>
<CAPTION>
(In Thousands)
Strong
Growth and
Income Fund
-----------
<S> <C>
Income:
Dividends (net of foreign withholding taxes of $72) $ 7,936
Interest 196
---------
Total Income 8,132
Expenses:
Investment Advisory Fees 6,930
Administrative Fees - Investor Class 1,980
Custodian Fees 36
Shareholder Servicing Costs - Investor Class 2,289
Reports to Shareholders - Investor Class 563
Transfer Agency Banking Charges - Investor Class 5
Other 238
---------
Total Expenses 12,041
---------
Net Investment Loss (3,909)
Realized and Unrealized Gain (Loss):
Net Realized Gain (Loss) on:
Investments 11,123
Options Contracts (705)
---------
Net Realized Gain 10,418
Net Change in Unrealized Appreciation/Depreciation on Investments 92,176
---------
Net Gain on Investments 102,594
---------
Net Increase in Net Assets Resulting from Operations $ 98,685
=========
</TABLE>
See Notes to Financial Statements.
34
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(In Thousands)
Strong American Utilities Fund Strong Balanced Fund
------------------------------- -------------------------------
Year Ended Year Ended Year Ended Year Ended
Oct. 31, 2000 Oct. 31, 1999 Oct. 31, 2000 Oct. 31, 1999
------------- ------------- ------------- -------------
(Note 1)
<S> <C> <C> <C> <C>
Operations:
Net Investment Income $ 5,034 $ 5,420 $ 11,695 $ 9,723
Net Realized Gain 12,005 22,724 18,461 9,892
Net Change in Unrealized Appreciation/Depreciation 11,819 (2,801) (10,933) 41,258
--------- --------- --------- ---------
Net Increase in Net Assets Resulting from
Operations 28,858 25,343 19,223 60,873
Distributions:
From Net Investment Income (4,846) (5,845) (11,742) (9,224)
From Net Realized Gains (23,398) (8,562) (10,681) --
--------- --------- --------- ---------
Total Distributions (28,244) (14,407) (22,423) (9,224)
Capital Share Transactions (Note 4):
Net Increase in Net Assets from Capital Share
Transactions 14,937 19,530 30,827 3,867
--------- --------- --------- ---------
Total Increase in Net Assets 15,551 30,466 27,627 55,516
Net Assets:
Beginning of Year 244,731 214,265 343,908 288,392
--------- --------- --------- ---------
End of Year $ 260,282 $ 244,731 $ 371,535 $ 343,908
========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
Strong Equity Income Fund Strong Large Cap Growth Fund
------------------------------- -------------------------------
Year Ended Year Ended Year Ended Year Ended
Oct. 31, 2000 Oct. 31, 1999 Oct. 31, 2000 Oct. 31, 1999
------------- ------------- ------------- -------------
(Note 1)
<S> <C> <C> <C> <C>
Operations:
Net Investment Income (Loss) $ 564 $ 567 ($ 6,297) ($ 792)
Net Realized Gain 4,782 5,122 197,246 234,855
Net Change in Unrealized Appreciation/Depreciation 10,740 27,461 150,540 144,582
----------- ----------- ---------- -----------
Net Increase in Net Assets Resulting from Operations 16,086 33,150 341,489 378,645
Distributions:
From Net Investment Income (532) (639) -- --
In Excess of Net Investment Income -- -- -- (195)
From Net Realized Gains (4,182) -- (238,888) (11,003)
----------- ----------- ---------- -----------
Total Distributions (4,714) (639) (238,888) (11,198)
Capital Share Transactions (Note 4):
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 59,236 (21,489) 413,605 23,129
----------- ----------- ---------- -----------
Total Increase in Net Assets 70,608 11,022 516,206 390,576
Net Assets:
Beginning of Year 181,778 170,756 1,253,224 862,648
----------- ----------- ---------- ----------
End of Year $ 252,386 $ 181,778 $1,769,430 $1,253,224
=========== =========== ========== ==========
</TABLE>
See Notes to Financial Statements
35
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (continued)
-----------------------------------------------------------------------------
<TABLE>
<CAPTION>
(In Thousands)
Strong Limited Resources Fund
------------------------------
Year Ended Year Ended
Oct. 31, 2000 Oct. 31, 1999
------------- -------------
<S> <C> <C>
Operations:
Net Investment Loss ($ 20) ($ 15)
Net Realized Gain (Loss) on Investments 107 (465)
Net Change in Unrealized Appreciation/Depreciation on Investments 1,332 1,071
-------- -------
Net Increase in Net Assets Resulting from Operations 1,419 591
Distributions In Excess of Net Investment Income -- (8)
Capital Share Transactions (Note 4):
Net Increase in Net Assets from Capital Share Transactions 3,822 578
-------- -------
Total Increase in Net Assets 5,241 1,161
Net Assets:
Beginning of Year 6,107 4,946
-------- -------
End of Year $ 11,348 $ 6,107
======== =======
</TABLE>
<TABLE>
<CAPTION>
Strong Blue Chip 100 Fund
---------------------------------
Year Ended Year Ended
Oct. 31, 2000 Oct. 31, 1999
--------------- ---------------
<S> <C> <C>
Operations:
Net Investment Loss ($ 2,743) ($ 1,011)
Net Realized Gain (Loss) on Investments 31,778 (1,779)
Net Change in Unrealized Appreciation/Depreciation on Investments 42,149 70,997
--------- ---------
Net Increase in Net Assets Resulting from Operations 71,184 68,207
Distributions From Net Investment Income - Investor Class -- (6)
Capital Share Transactions (Note 4):
Net Increase in Net Assets from Capital Share Transactions 60,383 326,731
--------- ---------
Total Increase in Net Assets 131,567 394,932
Net Assets:
Beginning of Year 484,840 89,908
--------- ---------
End of Year $ 616,407 $ 484,840
========= =========
</TABLE>
See Notes to Financial Statements.
36
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(In Thousands)
Strong Growth and Income Fund
-----------------------------
Year Ended Year Ended
Oct. 31, 2000 Oct. 31, 1999
------------- -------------
<S> <C> <C>
Operations:
Net Investment Loss ($ 3,909) ($ 932)
Net Realized Gain 10,418 5,774
Net Change in Unrealized Appreciation/Depreciation on Investments 92,176 162,221
----------- ---------
Net Increase in Net Assets Resulting from Operations 98,685 167,063
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 269,932 295,570
----------- ---------
Total Increase in Net Assets 367,752 462,574
Net Assets:
Beginning of Year 861,462 398,888
----------- ---------
End of Year $ 1,229,214 $ 861,462
=========== =========
</TABLE>
See Notes to Financial Statements.
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
October 31, 2000
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 Balanced Fund, Inc./(1)(2)/ (formerly Strong Asset Allocation
Fund, Inc.)
- Strong Equity INcome Fund/(2)/ (a series of Strong Conservative Equity
Funds, Inc./(1)/)
- Strong Large Cap Growth Fund, Inc./(1)(2)/(formerly Strong Total Return
Fund, Inc.)
- Strong Limited Resources Fund/(2)/ (a series of Strong Conservative
Equity Funds, Inc./(1)/)
- 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 March 1, 2000, the Strong Blue Chip 1000 Fund has issued two
classes of shares: Investor Class and Advisor Class and Strong Growth and
Income Fund has issued three classes of shares: Investor Class,
Institutional Class and Advisor Class. Shares held prior to March 1, 2000
were designated as Investor Class shares. Each class of shares is subject
to an administrative fee and 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.
Effective November 30, 2000, Strong Equity Income Fund changed its name to
Strong Advisor U.S. Value Fund and introduced four new classes of shares
for distribution.
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-- Security 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 cost and fair value of restricted
securities held at October 31, 2000 which are either Section 4(2)
commercial paper or are eligible for resale pursuant to Rule 144A
under the Securities Act of 1933 and have been determined to be
illiquid by the Advisor based upon guidelines established by the
Funds' Board of Directors were as follows:
Aggregate Aggregate Percent of
Cost Fair Value Net Assets
---------- ---------- ----------
Strong Balanced Fund $2,150,710 $2,191,538 0.6%
Strong Large Cap Growth Fund 5,000,000 5,000,000 0.3%
(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 and it realizes losses
realized on investment transactions are determined by comparing the
identified cost of the security lot sold with the net sales proceeds.
38
<PAGE>
-------------------------------------------------------------------------------
(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, which approximates fair value. 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 accounting principles generally accepted in the United
States of America 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. 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.
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 and
administrative agreements, are based on the following annualized rates of
the average daily net assets of the respective Fund:
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
October 31, 2000
<TABLE>
<CAPTION>
Administrative
Administrative Fees - Administrative Fees - Fees- Advisor
Advisory Fees Advisory Fees Investor Class Institutional Class Class March 1,
Nov. 1, 1999- March 1, 2000- March 1, 2000- March 1, 2000- 2000 - Oct. 31,
Feb. 29, 2000 Oct. 31, 2000 Oct. 31, 2000 Oct. 31, 2000 2000
------------- -------------- -------------------- -------------------- ---------------
<S> <C> <C> <C> <C> <C>
Strong American Utilities Fund 0.75% 0.50% 0.25% * *
Strong Balanced Fund 0.85%** 0.60%*** 0.25% * *
Strong Equity Income Fund 0.80% 0.55% 0.25% * *
Strong Large Cap Growth Fund 0.85%** 0.60%*** 0.25% * *
Strong Limited Resources Fund 1.00% 0.75% 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>
* Strong American Utilities Fund, Strong Balanced Fund, Strong Equity
Income Fund, Strong Large Cap Growth Fund and Strong Limited Resources
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.
**** 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 for the Investor Class are based on contractually
established rates for each open and closed shareholder account. Shareholder
recordkeeping and related service fees for the Institutional and Advisor
Classes are paid at an annual rate of 0.015% and 0.20%, respectively, of
the average daily net asset value of each respective class. 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 Funds' Statements 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' Statements 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 year ended October 31, 2000
totaled $674,814.
Scarborough Investment Advisers 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.
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. For the period ended
October 31, 2000, the Strong Blue Chip 100 Fund and the Strong Growth and
Income Fund incurred 12b-1 fees of $53 and $297, respectively.
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 year
ended October 31, 2000 is as follows:
<TABLE>
<CAPTION>
Payable to Shareholder Servicing Transfer Agency Unaffiliated
Advisor at and Other Expenses Banking Directors'
Oct. 31, 2000 Paid to Advisor Charges/(Credits) Fees
------------- --------------------- ----------------- ------------
<S> <C> <C> <C> <C>
Strong American Utilities Fund $ 34,700 $ 423,494 ($ 2,147) $ 4,098
Strong Balanced Fund 62,408 666,954 (2,990) 6,705
Strong Equity Income Fund 30,483 340,761 1,587 3,664
Strong Large Cap Growth Fund 178,902 1,988,366 (32,263) 28,874
Strong Limited Resources Fund 4,924 22,080 1,786 861
Strong Blue Chip 100 Fund 126,150 1,468,359 6,634 10,218
Strong Growth and Income Fund 202,736 2,295,860 5,352 17,505
</TABLE>
The Advisor owns 43% of the outstanding Advisor Class shares of the Strong
Blue Chip 100 Fund.
40
<PAGE>
4. Capital Share Transactions
<TABLE>
<CAPTION>
Strong American Strong
Utilities Fund Balanced Fund
--------------------------------- ---------------------------------
Year Ended Year Ended Year Ended Year Ended
Oct. 31, 2000 Oct. 31, 1999 Oct. 31, 2000 Oct. 31, 1999
------------- ------------- ------------- --------------
(Note 1)
<S> <C> <C> <C> <C>
Capital Share Transactions of Each of
the Funds Were as Follows:
Proceeds from Shares Sold $ 124,348,888 $ 108,125,690 $ 194,253,343 $ 61,187,544
Proceeds from Reinvestment of Distributions 26,597,194 13,629,156 21,601,175 8,843,599
Payment for Shares Redeemed (136,009,060) (102,224,773) (185,027,305) (66,164,564)
------------- ------------- ------------- -------------
Net Increase in Net Assets from Capital
Share Transactions $ 14,937,022 $ 19,530,073 $ 30,827,213 $ 3,866,579
============= ============= ============= =============
Transactions in Shares of Each of
the Funds Were as Follows:
Sold 7,664,676 6,418,152 7,409,638 2,544,251
Issued in Reinvestment of Distributions 1,791,268 809,700 845,987 369,652
Redeemed (8,660,662) (6,122,487) (7,056,431) (2,752,247)
------------- ------------- ------------- -------------
Net Increase in Shares of the Fund 795,282 1,105,365 1,199,194 161,656
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
Strong Equity Strong Large Cap
Income Fund Growth Fund
--------------------------------- ---------------------------------
Year Ended Year Ended Year Ended Year Ended
Oct. 31, 2000 Oct. 31, 1999 Oct. 31, 2000 Oct. 31, 1999
------------- ------------- ------------- --------------
(Note 1)
<S> <C> <C> <C> <C>
Capital Share Transactions of Each of
the Funds Were as Follows:
Proceeds from Shares Sold $ 132,840,832 $ 63,876,400 $ 450,266,883 $ 221,427,152
Proceeds from Reinvestment of Distributions 4,518,629 612,284 231,474,320 10,867,367
Payment for Shares Redeemed (78,123,781) (85,977,241) (268,136,508) (209,164,690)
------------- ------------- ------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ 59,235,680 ($ 21,488,557) $ 413,604,695 $ 23,129,829
============= ============= ============= =============
Transactions in Shares of Each of
the Funds Were as Follows:
Sold 6,321,399 3,277,364 9,358,245 5,972,687
Issued in Reinvestment of Distributions 211,230 31,435 4,975,791 314,085
Redeemed (3,696,014) (4,402,854) (5,619,663) (5,746,448)
------------- ------------- ------------- -------------
Net Increase (Decrease) in Shares of the Fund 2,836,615 (1,094,055) 8,714,373 540,324
============= ============= ============= =============
</TABLE>
41
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
October 31, 2000
Strong Limited Resources Fund
------------------------------
Year Ended Year Ended
Oct. 31, 2000 Oct. 31, 1999
-------------- -------------
Capital Share Transactions of Each of
the Funds Were as Follows:
Proceeds from Shares Sold $ 16,282,419 $ 6,190,816
Proceeds from Reinvestment of Distributions -- 6,489
Payment for Shares Redeemed (12,460,615) (5,618,899)
------------ ------------
Net Increase in Net Assets from
Capital Share Transactions $ 3,821,804 $ 578,406
============ ============
Transactions in Shares of Each of
the Funds Were as Follows:
Sold 1,536,155 754,705
Issued in Reinvestment of Distributions -- 854
Redeemed (1,211,570) (681,931)
------------ ------------
Net Increase in Shares of the Fund 324,585 73,628
============ ============
<TABLE>
<CAPTION>
Strong Blue Chip
100 Fund
---------------------------------------
Year Ended Year Ended
Oct. 31, 2000 Oct. 31, 1999
------------------ -------------------
Capital Share Transactions of Each Class of
Shares of the Funds Were as Follows:
<S> <C> <C>
INVESTOR CLASS
Proceeds from Shares Sold $ 304,612,699 $ 506,739,748
Proceeds from Reinvestment of Distributions -- 5,530
Payment for Shares Redeemed (244,264,592) (180,013,627)
------------- -------------
Net Increase in Net Assets from Capital
Share Transactions 60,348,107 326,731,651
ADVISOR CLASS
Proceeds from Shares Sold 55,136 --
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (20,424) --
------------- -------------
Net Increase in Net Assets from Capital
Share Transactions 34,712 --
------------- -------------
Net Increase in Net Assets from
Capital Share Transactions $ 60,382,819 $ 326,731,651
============= =============
Transactions in Shares of Each Class of
the Funds Were as Follows:
INVESTOR CLASS
Sold 14,020,913 30,780,023
Issued in Reinvestment of Distributions -- 352
Redeemed (11,448,281) (10,779,715)
------------- -------------
Net Increase in Shares 2,572,632 20,000,660
ADVISOR CLASS
Sold 2,474 --
Issued in Reinvestment of Distributions -- --
Redeemed (892) --
------------- -------------
Net Increase in Shares 1,582 --
------------- -------------
Net Increase in Shares of the Fund 2,574,214 20,000,660
============= =============
</TABLE>
42
<PAGE>
<TABLE>
<CAPTION>
Strong Growth and
Income Fund
-----------------------------------------
Year Ended Year Ended
Oct. 31, 2000 Oct. 31, 1999
------------------- -------------------
Capital Share Transactions of Each Class of
Shares of the Funds Were as Follows:
<S> <C> <C>
INVESTOR CLASS
Proceeds from Shares Sold $ 625,406,213 $ 493,658,555
Proceeds from Reinvestment of Distributions 830,405 57,543
Payment for Shares Redeemed (357,545,791) (198,145,274)
------------- ------------
Net Increase in Net Assets from
Capital Share Transactions 268,690,827 295,570,824
INSTITUTIONAL CLASS
Proceeds from Shares Sold 789,236 --
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (16,887) --
------------- ------------
Net Increase in Net Assets from
Capital Share Transactions 772,349 --
ADVISOR CLASS
Proceeds from Shares Sold 724,154 --
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (255,326) --
------------- ------------
Net Increase in Net Assets from
Capital Share Transactions 468,828 --
------------- ------------
Net Increase in Net Assets from
Capital Share Transactions $ 269,932,004 $ 295,570,824
============= ============
Transactions in Shares of Each Class of the
Funds Were as Follows:
INVESTOR CLASS
Sold 21,753,545 21,495,816
Issued in Reinvestment of Distributions 29,148 2,633
Redeemed (12,544,459) (8,693,980)
------------- ------------
Net Increase in Shares 9,238,234 12,804,469
INSTITUTIONAL CLASS
Sold 27,735 --
Issued in Reinvestment of Distributions -- --
Redeemed (561) --
------------- ------------
Net Increase in Shares 27,174 --
ADVISOR CLASS
Sold 25,230 --
Issued in Reinvestment of Distributions -- --
Redeemed (9,146) --
------------- ------------
Net Increase in Shares 16,084 --
------------- ------------
Net Increase in Shares of the Fund 9,281,492 12,804,469
============= ============
</TABLE>
43
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
October 31, 2000
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
0.09% per annum is incurred on the unused portion of the LOC and is
allocated to all participating Strong Funds. At October 31, 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 year
ended October 31, 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 $ -- $ 255,520,977 $ -- $ 238,591,130
Strong Balanced Fund 251,374,266 325,778,410 217,468,133 316,647,244
Strong Equity Income Fund -- 149,836,786 -- 99,929,830
Strong Large Cap Growth Fund -- 7,488,135,611 -- 7,474,175,503
Strong Limited Resources Fund -- 7,429,781 -- 3,773,569
Strong Blue Chip 100 Fund -- 461,621,273 -- 398,068,423
Strong Growth and Income Fund -- 1,608,090,128 -- 1,344,014,689
</TABLE>
7. Income Tax Information
At October 31, 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>
Federal Tax Unrealized Unrealized Net Net Capital
Cost Appreciation Depreciation Appreciation Loss Carryovers
--------------- --------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
Strong American Utilities Fund $ 207,226,066 $ 55,177,730 $ 3,153,322 $ 52,024,408 $ --
Strong Balanced Fund 319,251,247 85,023,764 15,587,289 69,436,475 --
Strong Equity Income Fund 173,602,594 76,174,689 3,185,830 72,988,859 --
Strong Large Cap Growth Fund 1,428,865,184 421,427,390 11,279,974 410,147,416 --
Strong Limited Resources Fund 9,446,263 2,353,983 625,272 1,728,711 1,000,007
Strong Blue Chip 100 Fund 507,985,591 144,945,157 27,837,072 117,108,085 --
Strong Growth and Income Fund 925,185,777 334,625,224 11,760,434 322,864,790 --
</TABLE>
During the year ended October 31, 2000, the Funds paid capital gains
distributions (taxable as long-term capital gains at 20%) to shareholders
as follows (unaudited): Strong American Utilities Fund $23,199,456, Strong
Balanced Fund $10,681,378, Strong Equity Income Fund $4,181,533, Strong
Large Cap Growth Fund $141,934,340, Strong Limited Resources Fund $0,
Strong Blue Chip 100 Fund $0, and Strong Growth and Income Fund $865,283.
Strong Blue Chip 100 Fund and Strong Limited Resources Fund utilized
$2,312,330 and $110,225, respectively, of their capital loss carryovers
during the year ended October 31, 2000.
For corporate shareholders in the Funds, the percentages of dividend income
distributed for the year ended October 31, 2000 which is designated as
qualifying for the dividends-received deduction are as follows (unaudited):
Strong American Utilities Fund 100%, Strong Balanced Fund 21.6%, Strong
Equity Income Fund 100%, Strong Large Cap Growth Fund 0%, Strong Limited
Resources Fund 0%, Strong Blue Chip 100 Fund 0%, and Strong Growth and
Income Fund 0%.
44
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
STRONG AMERICAN UTILITIES FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
--------------------------------------------------
Oct. 31, Oct. 31, Oct. 31, Oct. 31, Oct. 31,
Selected Per-Share Data/(a)/ 2000 1999 1998 1997 1996
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 17.18 $ 16.31 $ 13.97 $ 12.64 $ 11.73
Income From Investment Operations:
Net Investment Income 0.37 0.37 0.35 0.40 0.40
Net Realized and Unrealized Gains on Investments 1.88 1.52 3.12 1.98 0.90
----------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.25 1.89 3.47 2.38 1.30
Less Distributions:
From Net Investment Income (0.36) (0.41) (0.37) (0.38) (0.39)
From Net Realized Gains (1.76) (0.61) (0.76) (0.67) --
----------------------------------------------------------------------------------------------------------------------
Total Distributions (2.12) (1.02) (1.13) (1.05) (0.39)
----------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 17.31 $ 17.18 $ 16.31 $ 13.97 $ 12.64
======================================================================================================================
Ratios and Supplemental Data
----------------------------------------------------------------------------------------------------------------------
Total Return +15.4% +11.8% +25.7% +19.7% +11.2%
Net Assets, End of Period (In Millions) $ 260 $ 245 $ 214 $ 135 $ 122
Ratio of Expenses to Average Net Assets Without Fees Paid
Indirectly by Advisor 1.0% 1.0% 1.0% 1.1% 1.2%
Ratio of Expenses to Average Net Assets 1.0% 1.0% 1.0% 1.1% 1.2%
Ratio of Net Investment Income to Average Net Assets 2.3% 2.2% 2.4% 3.0% 3.2%
Portfolio Turnover Rate 106.8% 74.9% 69.0% 61.9% 84.0%
</TABLE>
<TABLE>
<CAPTION>
STRONG BALANCED FUND
------------------------------------------------------------------------------------------------------------------------
Year Ended
--------------------------------------------------
Oct. 31, Oct. 31, Oct. 31, Oct. 31, Oct. 31,
Selected Per-Share Data/(a)/ 2000 1999 1998 1997 1996
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 24.92 $ 21.14 $ 21.44 $ 20.12 $ 20.31
Income From Investment Operations:
Net Investment Income 0.82 0.71 0.55 0.67 0.78
Net Realized and Unrealized Gains on Investments 0.61 3.75 1.75 2.96 1.05
----------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.43 4.46 2.30 3.63 1.83
Less Distributions:
From Net Investment Income (0.83) (0.68) (0.54) (0.67) (0.84)
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 (1.58) (0.68) (2.60) (2.31) (2.02)
----------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 24.77 $ 24.92 $ 21.14 $ 21.44 $ 20.12
======================================================================================================================
Ratios and Supplemental Data
----------------------------------------------------------------------------------------------------------------------
Total Return +5.7% +21.3% +11.8% +19.3% +9.5%
Net Assets, End of Period (In Millions) $ 372 $ 344 $ 288 $ 277 $ 263
Ratio of Expenses to Average Net Assets without Fees
Paid Indirectly by Advisor 1.1% 1.1% 1.0% 1.1% 1.1%
Ratio of Expenses to Average Net Assets 1.1% 1.1% 1.0% 1.1% 1.1%
Ratio of Net Investment Income to Average Net Assets 3.2% 3.0% 2.5% 3.2% 3.9%
Portfolio Turnover Rate 150.9% 64.7% 185.9% 276.5% 446.7%
</TABLE>
(a) Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
See Notes to Financial Statements.
45
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
--------------------------------------------------------------------------------
STRONG EQUITY INCOME FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
----------------------------------------------------------------------------
Oct. 31, Oct. 31, Oct. 31, Oct. 31, Oct. 31,
Selected Per-Share Data/(a)/ 2000 1999 1998 1997 1996/(b)/
------------------------------------------------------------------------------------------------------------------------------------
<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 0.05 0.06 0.11 0.13 0.12
Net Realized and Unrealized Gains on Investments 1.53 3.39 2.05 3.81 2.02
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.58 3.45 2.16 3.94 2.14
Less Distributions:
From Net Investment Income (0.05) (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 (0.53) (0.07) (0.80) (0.13) (0.11)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 21.63 $ 20.58 $ 17.20 $ 15.84 $ 12.03
====================================================================================================================================
Ratios and Supplemental Data
------------------------------------------------------------------------------------------------------------------------------------
Total Return +7.7% +20.1% +14.2% +32.9% +21.5%
Net Assets, End of Period (In Millions) $ 252 $ 182 $ 171 $ 134 $ 29
Ratio of Expenses to Average Net Assets 1.0% 1.1% 1.1% 1.1% 1.3%*
Ratio of Net Investment Income to Average Net Assets 0.3% 0.3% 0.7% 0.9% 1.6%*
Portfolio Turnover Rate 46.5% 32.3% 83.2% 152.6% 158.3%
</TABLE>
<TABLE>
<CAPTION>
STRONG LARGE CAP GROWTH FUND
------------------------------------------------------------------------------------------------------------------------------------
Year Ended
----------------------------------------------------------------------------
Oct. 31, Oct. 31, Oct. 31, Oct. 31, Oct. 31,
Selected Per-Share Data/(a)/ 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 41.52 $ 29.10 $ 32.66 $ 31.36 $ 28.02
Income From Investment Operations:
Net Investment Income (Loss) (0.16) (0.03) 0.13 0.19 0.24
Net Realized and Unrealized Gains on Investments 12.01 12.84 3.44 6.21 4.65
------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 11.85 12.81 3.57 6.40 4.89
Less Distributions:
From Net Investment Income -- -- (0.14) (0.19) (0.24)
In Excess of Net Investment Income -- (0.01) -- (0.17) (0.06)
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)
------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 45.49 $ 41.52 $ 29.10 $ 32.66 $ 31.36
====================================================================================================================================
Ratios and Supplemental Data
------------------------------------------------------------------------------------------------------------------------------------
Total Return +28.1% +44.3% +13.6% +23.4% +18.0%
Net Assets, End of Period (In Millions) $ 1,769 $ 1,253 $ 863 $ 832 $ 760
Ratio of Expenses to Average Net Assets without
Fees Paid Indirectly by Advisor 1.0% 1.0% 1.0% 1.1% 1.1%
Ratio of Expenses to Average Net Assets 1.0% 1.0% 1.0% 1.1% 1.1%
Ratio of Net Investment Income (Loss)
to Average Net Assets (0.4%) (0.1%) 0.4% 0.6% 0.8%
Portfolio Turnover Rate 455.0% 402.3% 267.8% 404.6% 502.4%
</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 December 31, 1995 (inception) to October 31, 1996.
See Notes to Financial Statements.
46
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
--------------------------------------------------------------------------------
STRONG LIMITED RESOURCES FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
----------------------------------------------------------
Oct. 31, Oct. 31, Oct. 31, Oct. 31,
Selected Per-Share Data/(a)/ 2000 1999 1998 1997/(b)/
--------------------------------------------------------------------------------------------------------------------------------
<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 2.38 0.86 (1.68) (0.49)
--------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.36 0.84 (1.72) (0.49)
Less Distributions:
From Net Investment Income -- -- (0.00)/(c)/ --
In Excess of Net Investment Income -- (0.01) -- --
--------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (0.01) (0.00)/(c)/ --
--------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $10.98 $ 8.62 $ 7.79 $ 9.51
================================================================================================================================
Ratios and Supplemental Data
--------------------------------------------------------------------------------------------------------------------------------
Total Return +27.4% +10.8% -18.0% -4.9%
Net Assets, End of Period (In Millions) $ 11 $ 6 $ 5 $ 5
Ratio of Expenses to Average Net Assets without Waivers and Absorptions 1.9% 2.0% 2.0% 2.0%*
Ratio of Expenses to Average Net Assets 1.8% 2.0% 2.0% 2.0%*
Ratio of Net Investment Income (Loss) to Average Net Assets (0.3%) (0.3%) (0.4%) 0.0%/(c)/*
Portfolio Turnover Rate 51.4% 55.4% 61.2% 1.2%
</TABLE>
<TABLE>
<CAPTION>
STRONG BLUE CHIP 100 FUND - INVESTOR CLASS
-------------------------------------------------------------------------------------------------------------------------------
Year Ended
----------------------------------------------------------
Oct. 31, Oct. 31, Oct. 31, Oct. 31,
Selected Per-Share Data/(a)/ 2000 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) (0.09) (0.04) 0.10 0.01
Net Realized and Unrealized Gains on Investments 2.98 4.90 2.86 0.38
--------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.89 4.86 2.96 0.39
Less Distributions:
From Net Investment Income -- (0.00)/(c)/ (0.11) --
--------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (0.00)/(c)/ (0.11) --
--------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 20.99 $ 18.10 $ 13.24 $ 10.39
================================================================================================================================
Ratios and Supplemental Data
--------------------------------------------------------------------------------------------------------------------------------
Total Return +16.0% +36.7% +28.6% +3.9%
Net Assets, End of Period (In Millions) $ 616 $ 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 (0.5%) (0.3%) 0.7% 0.6%*
Portfolio Turnover Rate/(e)/ 67.9% 75.4% 46.5% 21.5%
</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 September 30, 1997 (inception) to October 31, 1997.
(c) Amount calculated is less than $0.01 or 0.1%.
(d) For the period from June 30, 1997 (inception) to October 31, 1997.
(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>
FINANCIAL HIGHLIGHTS (continued)
-------------------------------------------------------------------------------
STRONG BLUE CHIP 100 FUND - ADVISOR CLASS
------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
-----------
Oct. 31,
Selected Per-Share Data/(a)/ 2000/(b)/
--------------------------------------------------------------------
<S> <C>
Net Asset Value, Beginning of Period $ 21.99
Income From Investment Operations:
Net Investment Loss (0.09)
Net Realized and Unrealized Losses on Investments (0.96)
--------------------------------------------------------------------
Total from Investment Operations (1.05)
Less Distributions:
From Net Investment Income --
--------------------------------------------------------------------
Total Distributions --
--------------------------------------------------------------------
Net Asset Value, End of Period $ 20.94
====================================================================
Ratios and Supplemental Data
--------------------------------------------------------------------
Total Return -4.8%
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)/ 67.9%
</TABLE>
<TABLE>
<CAPTION>
STRONG GROWTH AND INCOME FUND - INVESTOR CLASS
----------------------------------------------------------------------------------------------------------------------------------
Year Ended
-------------------------------------------------------------
Oct. 31, Oct. 31, Oct. 31, Oct. 31, Oct. 31,
Selected Per-Share Data/(a)/ 2000 1999 1998 1997 1996/(f)/
----------------------------------------------------------------------------------------------------------------------------------
<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) (0.09) (0.03) 0.03 0.07 0.04
Net Realized and Unrealized Gains on Investments 3.19 6.56 3.07 3.99 2.38
----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 3.10 6.53 3.10 4.06 2.42
Less Distributions:
From Net Investment Income -- (0.00)/(e)/ (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)/(e)/ (0.72) (0.09) (0.04)
----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 28.34 $ 25.26 $ 18.73 $ 16.35 $ 12.38
==================================================================================================================================
Ratios and Supplemental Data
----------------------------------------------------------------------------------------------------------------------------------
Total Return +12.3% +34.9% +19.7% +32.9% +24.2%
Net Assets, End of Period (In Millions) $ 1,228 $ 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)/ 122.0% 52.3% 107.5% 237.8% 174.1%
</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 October 31,
2000 (Note 1).
(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) Amount calculated is less than $0.01.
(f) For the period from December 31, 1995 (inception) to October 31, 1996.
See Notes to Financial Statements.
48
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
--------------------------------------------------------------------------------
STRONG GROWTH AND INCOME FUND - INSTITUTIONAL CLASS
----------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
----------
Oct. 31,
Selected Per-Share Data/a/ 2000/b/
----------------------------------------------------------------------------
<S> <C>
Net Asset Value, Beginning of Period $29.15
Income From Investment Operations:
Net Investment Income 0.01
Net Realized and Unrealized Losses on Investments (0.75)
----------------------------------------------------------------------------
Total from Investment Operations (0.74)
Less Distributions:
From Net Investment Income --
----------------------------------------------------------------------------
Total Distributions --
----------------------------------------------------------------------------
Net Asset Value, End of Period $28.41
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Ratios and Supplemental Data
----------------------------------------------------------------------------
Total Return -2.5%
Net Assets, End of Period (In Millions) $ 1
Ratio of Expenses to Average Net Assets 0.6%*
Ratio of Net Investment Income to Average Net Assets 0.1%*
Portfolio Turnover Rate/c/ 122.0%
</TABLE>
<TABLE>
<CAPTION>
STRONG GROWTH AND INCOME FUND - ADVISOR CLASS
----------------------------------------------------------------------------
Year Ended
----------
Oct. 31,
Selected Per-Share Data/a/ 2000/b/
----------------------------------------------------------------------------
<S> <C>
Net Asset Value, Beginning of Period $29.15
Income From Investment Operations:
Net Investment Loss (0.05)
Net Realized and Unrealized Losses on Investments (0.81)
----------------------------------------------------------------------------
Total from Investment Operations (0.86)
Less Distributions:
From Net Investment Income --
----------------------------------------------------------------------------
Total Distributions --
----------------------------------------------------------------------------
Net Asset Value, End of Period $28.29
============================================================================
Ratios and Supplemental Data
----------------------------------------------------------------------------
Total Return -3.0%
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/c/ 122.0%
</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 October
31, 2000 (Note 1).
(c) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
(d) Amount is less than $500,000.
See Notes to Financial Statements.
49
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
--------------------------------------------------------------------------------
To the Shareholders and Board of Directors of
Strong Conservative Equity Funds
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments in securities, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Strong American
Utilities Fund, Strong Blue Chip 100 Fund, Strong Equity Income Fund, Strong
Growth and Income Fund, Strong Limited Resources Fund (five of the portfolios
constituting the Strong Conservative Equity Funds, Inc.), Strong Balanced Fund,
Inc. (formerly Strong Asset Allocation Fund, Inc.) and Strong Large Cap Growth
Fund, Inc. (formerly Strong Total Return Fund, Inc.) (all seven collectively
referred to herein as the "Strong Conservative Equity Funds") at October 31,
2000, the results of each of their operations, the changes in each of their net
assets and their financial highlights for the periods indicated, in conformity
with accounting principles generally accepted in the United States of America.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Strong Conservative Equity
Funds' management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted in
the United States which require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at October 31, 2000 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
Milwaukee, Wisconsin
December 5, 2000
50
<PAGE>
Directors
Richard S. Strong
Willie D. Davis
Stanley Kritzik
Neal Malicky
Marvin E. Nevins
William F. Vogt
Officers
Richard S. Strong, Chairman of the Board
Elizabeth N. Cohernour, Vice President and Secretary
Cathleen A. Ebacher, Vice President and Assistant Secretary
Susan A. Hollister, Vice President and Assistant Secretary
Dennis A. Wallestad, Vice President
Thomas M. Zoeller, 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. RT8898-1200
Strong Investments
P.O. Box 2936 | Milwaukee, WI 53201
www.eStrong.com
--------------------------------------------------------------------------------
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
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