<PAGE> 1
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ANNUAL REPORT
THE STRONG
GROWTH FUNDS
THE STRONG OPPORTUNITY FUND
[PHOTO] THE STRONG GROWTH FUND
THE STRONG COMMON STOCK FUND
THE STRONG DISCOVERY FUND
THE STRONG INTERNATIONAL STOCK FUND
THE STRONG ASIA PACIFIC FUND
[STRONG LOGO]
DECEMBER 31,1994
<PAGE> 2
SHAREHOLDER PRIVILEGES*
TELEPHONE PURCHASE
Make additional investments from $50 to $25,000 into any Strong Fund by calling
us toll-free at 1-800-368-3863.
TELEPHONE EXCHANGE
If your financial goals change, you can exchange between any of the Strong
Funds free of charge.
TELEPHONE REDEMPTION
You can call toll-free to redeem your mutual fund shares at any time. Your
shares will be redeemed no later than the close of the next business day.
AUTOMATIC INVESTMENT PLAN
This plan allows you to set up regular transfers from your bank checking or
NOW account to your Strong Funds account. The minimum amount per transfer is
$50.
PAYROLL DIRECT DEPOSIT PLAN
You can automatically transfer all or a portion of your net pay at each pay
period. This eliminates the delay of depositing paychecks to your bank and then
sending a check through the mail to Strong Funds.
AUTOMATIC EXCHANGE PLAN
This plan allows you to exchange money from one Strong Fund to another. For
example, you may want to set up automatic exchanges from a money market fund to
an equity fund. The minimum amount per exchange is $50.
NO MINIMUM INVESTMENT PROGRAM
The Funds will waive the minimum initial investment for investors using the
Automatic Investment Plan.
For more information about these privileges, call us at 1-800-368-3863.
To reduce the volume of mail you receive, only one copy of certain materials,
such as prospectuses and shareholder reports, is mailed to your household.
Please call 1-800-368-3863 if you wish to receive additional copies, free of
charge.
*Each Fund reserves the right to terminate or modify any of these privileges.
<PAGE> 3
TABLE OF CONTENTS
<TABLE>
<S> <C>
MESSAGE FROM THE CHAIRMAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
INVESTMENT REVIEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
The Strong Opportunity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
The Strong Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
The Strong Common Stock Fund* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
The Strong Discovery Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
The Strong International Stock Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
The Strong Asia Pacific Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
FINANCIAL INFORMATION
Historical Investment Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Summary of Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Historical Record . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Schedules of Investments in Securities
The Strong Opportunity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
The Strong Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
The Strong Common Stock Fund* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
The Strong Discovery Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
The Strong International Stock Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
The Strong Asia Pacific Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Statements of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Statements of Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Statements of Changes in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
REPORT OF INDEPENDENT ACCOUNTANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
</TABLE>
*This Fund is currently closed to new investors.
<PAGE> 4
Message from the Chairman
Dear Strong Funds Investor:
We are pleased to report that 1994, our twentieth year, was extremely
successful. In a challenging investment environment, our results were, once
again, very satisfying, with many of our funds being among the top performers
in their categories.
Mutual fund assets under management grew past $8 billion, and active accounts
passed the 500,000 mark.
[PHOTO]
Morningstar, Inc., a nationally recognized authority on mutual funds, assigns
"star" ratings to funds, with 1 star as the lowest rating and 5 stars the
highest. Of the twelve Strong Funds that Morningstar currently rates, all
have at least a 3-star rating, and many carry 4 or 5 stars. We believe this
objective, unbiased recognition of Strong Funds speaks extremely well for the
talent and strength of our firm's investment department.
We are very encouraged by the shift that has occurred in the Congress as a
result of the 1994 elections. Looking ahead, we believe this sweeping change
will have a number of important implications. Among them:
- - - - Federal Reserve Board policies should be supported, not hampered, by Congress.
- - - - The U.S. dollar may once again become a bastion of stability and confidence.
2
<PAGE> 5
- - - - Inflation should trend downward over time.
- - - - Entrepreneurial initiatives, investments and business should receive positive,
rather than negative, legislative treatment.
With another year of solid investment results behind us and a favorable
investment climate ahead, we are very confident in our future growth potential.
To fully realize this potential, we forged ahead this past year and implemented
strategic actions aimed at providing you with superior investment results, a
wide and expanding range of investment products, and exceptional service.
First and foremost, our strategy relies on having very talented and dedicated
people who are deeply committed to you and the stewardship of your investments.
Our team enjoys a dynamic balance of successful and experienced portfolio
managers, combined with our own rising young talent. Simply put, we believe
that we have developed an excellent investment management team to serve you.
To further enhance the effectiveness of our entire organization, we made
several significant additions to our management and administrative capabilities
in 1994. We were very pleased to have John Dragisic join us as Vice Chairman.
John brings with him many successful years of general management experience and
a unique perspective on the company as a former member of the Strong Funds
Board. Among several other new positions, we were particularly pleased with the
appointment of Rochelle Lamm Wallach as President of Strong Advisory Services,
a new unit that will lead our efforts in today's critically important
retirement and financial intermediary markets. These appointments, and the
others we have made during the past year, will contribute greatly to the
continued growth and success we expect in our third decade.
These are important changes for you, because they not only strengthen the
management of your Fund's advisor, but they also make it possible for us to
continue building on our strengths with better service and a wider array of
investment alternatives.
With these vital resources now in place, we look forward to the coming year
with great confidence. We thank you for your continued support.
Sincerely,
/s/ Richard S. Strong
Richard S. Strong
Chairman
3
<PAGE> 6
THE STRONG
OPPORTUNITY
FUND
In pursuit of capital appreciation, the Strong Opportunity Fund currently
focuses on the stocks of mid-sized companies that are under-researched by Wall
Street analysts and under-valued by the market.
RISING RATES PRESSURE
STOCK PRICES IN 1994
Stronger-than-expected economic growth, and the potential for higher inflation,
prompted the Federal Reserve to raise the federal funds rate six times during
1994, creating a challenging environment for stock investors. While higher
rates tended to depress stock prices during the first half of the year, strong
corporate earnings supplied some price support. Large company stocks were able
to battle back to their initial values by year-end; mid-sized and smaller
stocks trailed the broader market averages. Mid-sized companies, as measured by
the S&P MidCap 400 Index, finished the year down 3.58%.
Despite the difficult conditions for mid-sized company stocks, the Strong
Opportunity Fund achieved a positive total return of 3.18% for the year.
A DISCIPLINED
INVESTMENT APPROACH
We believe our ability to turn in a positive performance in an unfavorable
environment primarily reflects our cautious and demanding investment approach.
We maintained a fairly high cash position throughout 1994 - about 7% of net
assets at the start of the year, and at times near 15%. As an additional
investment strategy during the first two quarters, we emphasized cyclical
companies, which tend to benefit most from a faster-growing economy. We also
sought to use the early-1994 correction as an opportunity to replace marginal
holdings with solid, quality companies whose prices had become more attractive.
As the market leveled off during the second half of the year, earnings became
all-important, and we concentrated on stocks with prospects for good earnings
growth. Purchases included Sun Microsystems, LSI Logic and Rite Aid. Eastman
Chemical and Sante Fe Pacific Corporation were among the stocks we sold because
they had hit our price targets.
[Graph]
<TABLE>
<CAPTION>
GROWTH OF AN
ASSUMED $10,000 INVESTMENT
from 12/31/85 to 12/31/94
12/85 12/86 12/87 12/88 12/89 12/90 12/91 12/92 12/93 12/94
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
The Strong Opportunity Fund 10,000 15,990 17,894 20,841 24,694 21,903 28,845 33,851 41,022 42,325
S&P MidCap 400 Stock Index 10,000 11,621 11,383 13,761 18,649 17,693 26,556 29,720 33,866 32,652
S&P 500 Stock Index 10,000 11,866 12,490 14,564 19,179 18,583 24,245 26,091 28,721 29,101
</TABLE>
AVERAGE ANNUAL
TOTAL RETURNS
through 12/31/94
- - - ----------------
Since inception 17.39%
on 12/31/85
5-year 11.38%
3-year 13.63%
1-year 3.18%
This graph, prepared in accordance with SEC regulations, compares a
$10,000 investment in the Fund, made at its inception, with similar
investments in the Standard & Poor's 500 Stock Index ("S&P 500") and the
Standard & Poor's MidCap 400 Stock Index ("S&P 400"). Results include the
reinvestment of all dividends and capital gains. The S&P 500 is an unmanaged
index generally representative of the U.S. stock market. The S&P 400 is an
unmanaged index generally representative of the market for the stocks of
mid-sized U.S. companies. Source for the index data is Micropal. 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 Fund
shares. Please see the Historical Investment Returns section for more
information on the Fund's performance record.
4
<PAGE> 7
Throughout the year, we stayed focused on avoiding downside risk, as opposed to
stretching for upside potential. We also subjected the portfolio to continuous,
stringent evaluation on a stock-by-stock basis. We looked at relative value and
earnings potential. And we emphasized stocks that were less expensive than the
market average, because they tend to be less sensitive to rising rates.
ASSET ALLOCATION
(based on net assets as of 12/31/94)
[PIE CHART]
Cash Equivalents 11%
Common Stocks 88%
Corporate Bonds including convertibles 1%
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio. The Fund's asset allocation does not reflect a long
position in S&P 500 Stock Index futures representing 2.0% of net assets, which
is intended to increase the allocation to stocks and decrease the allocation to
cash.
FIVE LARGEST HOLDINGS
(based on net assets as of 12/31/94)
<TABLE>
<CAPTION>
% of Net
Company Description Assets
<S> <C> <C>
Autodesk, Inc. Computers & Software 1.5%
American International Insurance & 1.4%
Group, Inc. Insurance Related
Capital Cities/ABC, Inc. Broadcasting 1.4%
The Times Mirror Publishing 1.4%
Company Class A
Tyco International, Ltd. Conglomerates 1.3%
</TABLE>
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
A MORE FAVORABLE
ENVIRONMENT POSSIBLE IN 1995
Throughout 1994, the equity markets were in a transition period, at times
worried about higher interest rates, at other times encouraged by stronger
corporate earnings brought about by the improving economy. It now appears that
we may see interest rates peak as soon as mid-1995. Should the Federal
Reserve's actions successfully curtail inflation without drastically slowing
economic growth, the market may then be able to focus more fully on the
improving earnings picture, especially for growth companies. If so, the
corrections that occurred in 1994 may help set the stage for a better 1995.
[PHOTO]
While we understand that periods of market turbulence can be unsettling, we
encourage shareholders to maintain a long-term perspective. There are many
positives for mid-cap stocks. These stocks were laggards through most of the
1980s, and are now relatively attractive based on their value and their
expected growth rates. Therefore, we believe we are now in the midst of a
long-term trend, during which mid-cap stocks should outperform large-cap
issues.
Thank you for your continued confidence,
/s/ RICHARD T. WEISS
Richard T. Weiss
Portfolio Manager
/s/ MARINA T. CARLSON
Marina T. Carlson
Portfolio Manager
5
<PAGE> 8
THE STRONG
GROWTH
FUND
The Strong Growth Fund seeks capital appreciation by investing primarily in the
stocks of companies the portfolio manager believes have above-average growth
prospects.
In its first year, the Strong Growth Fund delivered excellent returns. For the
1-year period ended December 31, 1994, the Fund's total return was 17.27%,
compared to 1.32% for the stock market as measured by the Standard & Poor's 500
Stock Index. Based on total return for the same period, the Fund ranked #3 of
481 growth funds tracked by Lipper Analytical Services.*
BUILDING FOR
THE FUTURE
When we started the Strong Growth Fund at the beginning of 1994, economic
growth was accelerating and interest rates were starting to rise--conditions
that are not normally favorable for growth stock investing. It was, however,
the ideal time to begin accumulating attractive growth companies. Rising rates
brought the price-to-earnings ratios of growth stocks down to low levels. As
these stocks weakened, we were able to make timely, selected purchases with
cash from new investor inflows.
Thus, our strategy during this uncertain time was to build adequate cash
reserves, research our companies well, and snap up bargains when they presented
themselves. Just as importantly, we paid close attention to valuations, taking
profits if fundamentals turned negative or earnings growth faltered.
Now, many investors are worried about higher short-term interest rates and an
economic slowdown in 1995. However, that is exactly what growth stock investors
want to see, because we look for companies whose earnings can grow despite a
slowing economy. Thus, we feel the Fund is well positioned for 1995.
ASSET ALLOCATION
(based on net assets as of 12/31/94)
[PIE CHART]
Convertible Corporate Bonds 3%
Common & Preferred Stocks 85%
Cash Equivalents 12%
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio. The Fund's asset allocation does not reflect a short
position in S&P MidCap Stock Index futures representing 0.2% of net assets,
which is intended to decrease the allocation to stocks and increase the
allocation to cash.
IDENTIFYING GROWTH
OPPORTUNITY
When evaluating potential growth stock purchases, we look for companies that:
- - - -Possess strong unit growth and healthy balance sheets
- - - -Dominate their market niche
- - - -Feature proven, capable management
- - - -Are in fast-growing, emerging industries
- - - -Employ superior research and development
- - - -Use the latest technology to enhance productivity
- - - -Sell products and services to emerging growth countries
Applying these criteria within broad investment themes, we seek to achieve a
balance between small, mid-sized, and large capitalization companies in a
variety of industries. Our themes during 1994 included:
Technology, especially telecommunications, software, and networking companies.
We believe these industries will be the growth leaders in the '90s. Examples
include Motorola, Tellabs, Cisco Systems, and Micro-Touch Systems.
Selected consumer goods companies with a strong international presence, such as
Coca-Cola and Gillette.
Solid industrial companies. Federal Signal, Nucor (a high-tech steel company),
and Exide
6
<PAGE> 9
Corporation (a maker of auto batteries) are all driving costs down, developing
new products, and gaining market share.
Selected health care. Many companies, under pressure due to uncertainty about a
national health care program, offer attractive prices and may benefit from
the aging population's need for health care, either by providing services or
helping to reduce costs. Examples include Pfizer, Medtronic, R.P. Scherer,
Humana and Medaphis.
BETTER PROSPECTS AHEAD
Growth stocks last led the market in 1989-1991, when their earnings gains
relative to cyclical stocks were strongest. We believe similar conditions may
re-emerge in 1995. Because small and medium-sized companies typically have
faster earnings growth rates than larger companies, we intend to emphasize
these stocks, provided they meet our stringent standards for price and growth
potential.
[PHOTO]
Our vision for the coming years will be to balance the growth of strong, young
companies with the steady sales and earnings gains of larger, established
companies. Growth stock cycles tend to last for several years. If this is the
beginning of another such cycle, the market currently offers long-term
investors an outstanding opportunity.
We appreciate your confidence, and we look forward to serving your investment
needs in the years to come.
Sincerely,
/s/ Ronald C. Ognar
Ronald C. Ognar
Portfolio Manager
[GRAPH]
<TABLE>
<CAPTION>
GROWTH OF AN
ASSUMED $10,000 INVESTMENT
from 12/31/93 to 12/31/94
12/93 3/94 6/94 9/94 12/94
<S> <C> <C> <C> <C> <C>
The Strong Growth Fund 10,000 10,880 10,636 11,454 11,727
S&P 500 Stock Index 10,000 9,621 9,661 10,134 10,132
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
as of 12/31/94
- - - --------------
1-year 17.27%
This graph, prepared in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with a similar investment in the
Standard & Poor's 500 Stock Index, an unmanaged index generally representative
of the U.S. stock market. Results include the reinvestment of all dividends and
capital gains. Source for the index data is Micropal. 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 Fund shares. Please see the
Historical Investment Returns section for more information about the Fund's
performance record.
*Rankings are historical and do not represent future results.
7
<PAGE> 10
THE STRONG COMMON STOCK FUND
The Strong Common Stock Fund seeks capital appreciation, currently through
investments in small, underfollowed companies with unrecognized growth
potential. The Fund remains closed to new investors, an action taken in March
1993 to limit the Fund's asset growth and allow it to continue focusing on
small company stocks.
SMALL CAP STOCKS
HAMPERED BY RISING RATES
The stock market in general, and small company stocks in particular,
experienced a fitful year in 1994. Strong economic growth, and its potential to
generate higher inflation, spurred the Federal Reserve to boost the federal
funds rate repeatedly throughout the year. Stock prices declined in the Spring
due to higher interest rates, but the correction gave way to an earnings-driven
rally in the third quarter. By September, the market flirted with its all-time
high before settling back into modestly positive territory for the year. As
1994 drew to a close, the market's movement reminded us of a supertanker with
its engines turned off-it had momentum, but there was no driving force
propelling it forward.
As measured by the Russell 2000 Stock Index, small company stocks in 1994
posted a total return of -1.82%, compared to 1.32% for the market in general,
as gauged by the S&P 500. The Fund's total return for the year was -0.49%. We
acknowledge that outperforming a down market for small company stocks is little
solace for most investors. But we did achieve an important goal...hanging on to
most of 1993's gains.
[PIE CHART]
ASSET ALLOCATION
(based on net assets as of 12/31/94)
Cash Equivalents 11%
Common Stocks 89%
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
[GRAPH]
GROWTH OF AN
ASSUMED $10,000 INVESTMENT
from 12/29/89 to 12/31/94
<TABLE>
<CAPTION>
12/89 12/90 12/91 12/92 12/93 12/94
<S> <C> <C> <C> <C> <C> <C>
The Strong Common Stock Fund 10,000 10,100 15,864 19,161 23,988 23,872
Russell 2000 Stock Index 10,000 8,048 11,754 13,920 16,551 16,249
S&P 500 Stock Index 10,000 9,690 12,642 13,604 14,976 15,174
</TABLE>
AVERAGE ANNUAL
TOTAL RETURNS
through 12/31/94
- - - ----------------
Since inception 19.01%
on 12/29/94
3-year 14.59%
1-year -0.49%
This graph, prepared in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with similar investments in the
Standard & Poor's 500 Stock Index ("S&P 500") and the Russell 2000 Small Stock
Index ("Russell 2000"). Results include the reinvestment of all dividends and
capital gains. The S&P 500 is an unmanaged index generally representative of
the U.S. stock market. The Russell 2000 is an unmanaged index generally
representative of the market for small domestic stocks. Source for the index
data is Micropal. 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 Fund shares. Please see the Historical Investment Returns
section for more information on the Fund's performance record.
8
<PAGE> 11
FIVE LARGEST STOCK HOLDINGS
(based on net assets as of 12/31/94)
<TABLE>
<CAPTION>
% of Net
Company Description Assets
<S> <C> <C>
Autodesk, Inc. Computers & Software 1.6%
Tempest Reinsurance Insurance & 1.5%
Company, Ltd. Insurance Related
Capital Cities/ Broadcasting 1.5%
ABC, Inc.
United States Cellular Telephones 1.5%
Cellular Corporation
American Stores Retail 1.5%
Company
</TABLE>
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
A STRATEGY EMPHASIZING
CAUTION AND VALUE
We attribute our performance primarily to our defensive posture going into
1994, which stemmed from our anticipation of higher interest rates. This
expectation prompted us to raise our cash position and to monitor valuations
closely, adding to holdings that moved to large discounts and trimming those
that approached the top end of our price range.
Throughout the year, we concentrated on minimizing downside risk, using our
"bottom-up" approach to avoid losers rather than look for the big winners. We
also sought to use the correction to buy solid, quality companies whose prices
had become more reasonable. Such companies included AirTouch Communications and
Autodesk.
After mid-year, we also increased our weightings in the technology sector with
the purchase of Cirrus Logic. Newbridge Networks and KLM Royal Dutch Airlines
were among the companies we sold because we believed they had become fully
valued.
GREATER POTENTIAL
FOR GROWTH IN 1995
We believe 1994 was a transition year for the market. At times, investors
worried about higher rates...at other times, they were encouraged by higher
earnings made possible by strong economic growth. If the Federal Reserve's rate
hikes effectively moderate the economy's growth in 1995, upward pressure on
rates may subside. With the threat of higher rates removed, investors should be
free to focus on the growth potential of stocks - particularly the powerful
growth potential of small company stocks.
[PHOTO]
Moreover, small company stocks lagged large-capitalization stocks through the
1980s and now appear very attractive, based on their valuation and expected
growth rates. We therefore believe that small company stocks may be in the
midst of a longer-term trend, during which they should outperform large-cap
issues.
Thank you for your continued confidence,
/s/ Richard T. Weiss
Richard T. Weiss
Portfolio Manager
/s/ Marina T. Carlson
Marina T. Carlson
Portfolio Manager
9
<PAGE> 12
THE STRONG DISCOVERY FUND
1994 was a year of transition for the Strong Discovery Fund, as the economy
adapted to the Federal Reserve's interest rate increases and prepared for a new
era of opportunity made possible by last year's Congressional election.
The Discovery Fund declined 5.68% in 1994, in significant part because of the
U.S. stock market's correction from higher interest rates and the falling
dollar. But a longer-term view of our performance shows that since its
inception on December 31, 1987, the Fund has earned an average annual rate of
return of 16.74% for its investors, which is well above the 12.84% return for
the S&P 500 during the same time period.
Today, our portfolio management team believes that the U.S. and world
economies, financial markets and investment opportunities are well on their way
to becoming the most attractive they have been in two decades. Technology,
productivity and quality of business fabric are leading the way. Though we do
recognize that the U.S. economy is still growing too rapidly, we are confident
that the Federal Reserve's policies will eventually take hold.
In fact, we believe that during 1995, the economy will slow to sustainable
levels, and that interest rates will decline. In response, stocks in
general - and growth stocks in particular - could generate attractive returns
this year.
During 1994, the Fund's portfolio was well diversified in growth stocks, and
buttressed by blue chip growth companies such as Home Depot, IBM, Intel,
Motorola, Walt Disney and Xerox. These companies have been generating earnings
growth rates well above the S&P, lending a measure of relative stability and
liquidity to the portfolio.
Blended with these large, blue chip growth stocks were a number of smaller,
rapidly growing firms such as Danka Business Systems (office equipment
service), Exide (batteries), Harley-Davidson, Mercury Finance (car loans) and
Office Depot. Moreover, a majority of the portfolio's investments provide
[PHOTO]
10
<PAGE> 13
products and services that are consumed on a daily basis. We like the
predictability of companies like these...most are good examples of the razor
vs. blade theory of disposability and repeat purchase.
During the year, we reduced our direct exposure to foreign securities
significantly, and on December 31, 1994, only 4.3% of the Fund's assets were
invested overseas. However, when foreign markets return to attractive
valuations, we will again selectively invest in foreign stocks.
In conclusion, we continue to remain fully committed to investing for growth.
[PIE CHART]
ASSET ALLOCATION
(based on net assets as of 12/31/94)
Common & Preferred Stocks including Convertibles 89%
Cash Equivalents 11%
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
LOOKING AHEAD...
We believe the recent Congressional election will result in the Fed being
encouraged to protect the dollar and battle inflation. As the Fed makes
progress on this front, thus slowing the economy, foreign investors could
increase their holdings of U.S. liquid investments. This combination could
result in higher valuations for U.S. equities, making growth stocks potentially
excellent investment vehicles in the next market cycle.
Thank you for your investment in the Strong Discovery Fund. We will do our best
to earn your continued confidence.
Sincerely,
/s/ Richard S. Strong
Richard S. Strong
Portfolio Manager
[GRAPH]
<TABLE>
<CAPTION>
GROWTH OF AN
ASSUMED $10,000 INVESTMENT
from 12/31/87 to 12/31/94
12/87 12/88 12/89 12/90 12/91 12/92 12/93 12/94
<S> <C> <C> <C> <C> <C> <C> <C> <C>
The Strong Discovery Fund 10,000 12,447 15,430 15,008 25,155 25,643 31,337 29,557
S&P 500 Stock Index 10,000 11,661 15,356 14,879 19,412 20,891 22,996 23,300
</TABLE>
AVERAGE ANNUAL
TOTAL RETURNS
through 12/31/94
- - - ----------------
Since inception 16.74%
on 12/31/87
5-year 13.88%
1-year -5.68%
This graph, prepared in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with a similar investment in the
Standard & Poor's 500 Stock Index, an unmanaged index generally representative
of the U.S. stock market. Results include the reinvestment of all dividends and
capital gains. Source for the index data is Micropal. 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. Please see the
Historical Investment Returns section for more information on the Fund's
performance record.
11
<PAGE> 14
THE STRONG
INTERNATIONAL
STOCK FUND
By investing primarily in the stocks of companies based outside the United
States, the Strong International Stock Fund pursues long-term capital
appreciation. The Fund provides convenient access to growth opportunities
worldwide, and may increase return potential compared to a U.S.-only portfolio.
INTERNATIONAL STOCKS
STRUGGLED IN 1994
International equity markets in 1994 presented investors with few attractive
choices. Many Asian markets, following often spectacular gains in 1993, tended
to sell off almost as dramatically in 1994. The primary exception was Japan,
which posted a 21.4% total return; this helped account for the MSCI EAFE(R)
Index's 7.78% total return for the year (the Index is nearly 50% weighted
toward Japan). In Europe, some isolated markets performed well, but in general
the continent's 2.28% return was in line with the modestly positive performance
of the United States.* A portion of the weakness in many foreign markets was
offset by the dollar's decline in 1994, because assets denominated in foreign
currencies tended to appreciate versus the dollar.
Faced with this difficult environment, the Fund on the whole was successful in
largely avoiding the worst markets, such as Mexico and Hong Kong, and focusing
on those markets that turned in relatively better performances - such as
Australia, New Zealand, Sweden, and Norway. This is not to say that the Fund
avoided all potential pitfalls. Our weighting in the U.K. did not pay off, as
that market fell 1.63% for the year.* Across various markets, our holdings in
resource and commodities stocks that had done well for us suffered sharp
corrections toward the end of the year.
INVESTING STOCK-BY-STOCK
Throughout 1994, our general view was that the best offense was a good defense.
We kept a relatively large percent of assets in cash during the year (usually
in excess of 10%), although we were careful not to get out of the
[GRAPH]
<TABLE>
<CAPTION>
GROWTH OF AN
ASSUMED $10,000 INVESTMENT
from 3/4/92 to 12/31/94
3/92 6/92 12/92 6/93 12/93 6/94 12/94
<S> <C> <C> <C> <C> <C> <C> <C>
The Strong International Stock Fund 10,000 10,190 9,819 11,176 14,508 14,435 14,282
Morgan Stanley Capital International EAFE(R) Index 10,000 9,718 9,484 11,689 12,572 13,676 13,550
S&P 500 Stock Index 10,000 10,067 10,907 11,439 12,006 11,600 12,165
</TABLE>
AVERAGE ANNUAL
TOTAL RETURNS
through 12/31/94
- - - ----------------
Since inception 13.45%
on 3/4/92
1-year -1.56%
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with similar investments in the
Standard & Poor's 500 Stock Index ("S&P 500") and the Morgan Stanley Capital
International Europe, Australasia, and Far East Index ("MSCI EAFE(R)"). Results
include the reinvestment of all dividends and capital gains. The S&P 500 is an
unmanaged index generally representative of the U.S. stock market. The MSCI
EAFE(R) is an unmanaged index generally representative of major overseas stock
markets. MSCI EAFE(R) data are U.S. dollar-adjusted. Source for the index data
is Micropal. 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 Fund shares. Please see the Historical Investment Returns section
for more information on the Fund's performance record.
* Source: Morgan Stanley Capital International
12
<PAGE> 15
markets too much in case a rally materialized. We also made an effort to spread
our investment risk as thinly as possible by diversifying more fully into Latin
America, Europe and Africa. And we minimized exposure to markets we did not
like, in particular Hong Kong, where we were cautious on the property market
and the ability of the country to benefit from its relationship with China.
These, however, were broad brush strokes. Rather than concentrate on countries,
we looked for individual companies with good growth potential, even if those
firms were in underperforming markets. This "bottom-up," stock-by-stock
approach yielded some attractive finds, such as Autoliv, a Sweden-based airbag
manufacturer; and SensoNor, an auto-related company located in Norway.
This approach helped us avoid major pitfalls and hold on to nearly all of 1993's
gains.
[BAR GRAPH]
TOP FIVE HOLDINGS BY COUNTRY
(based on net assets as of 12/31/94)
<TABLE>
<S> <C>
Japan 16.1%
Australia 11.6%
United Kingdom 10.8%
France 5.3%
Norway 4.3%
</TABLE>
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
FIVE LARGEST HOLDINGS
(based on net assets as of 12/31/94)
<TABLE>
<CAPTION>
% of Net
Company Description Assets
<S> <C> <C>
East Japan Railroads 2.1%
Railway Company
Woodside Petroleum, Ltd. Oil Field Services 2.0%
& Equipment
TOC Company, Ltd. Real Estate 2.0%
Arjo AB Medical Supplies 1.9%
Carter Holt Harvey, Ltd. Forest & Paper 1.8%
Products
</TABLE>
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
KEEP A LONG-TERM FOCUS
After the consolidation we witnessed in nearly all international markets in
1994, we believe prospects are considerably brighter for the coming year. After
1993's outstanding performance, many investors were expecting a pullback. Now
that prices have become more reasonable, we look for the positive fundamentals
of global markets to show through. In key markets like the U.S., Japan,
Germany, Australia and the U.K., we believe economies can continue to grow
without substantially increasing inflation. There are no glaring political
difficulties in the major industrialized nations, and passage of the GATT and
NAFTA agreements should create additional opportunity. For these reasons, we
expect 1995 to signal a return to less volatile markets.
[PHOTO]
Longer term, the reasons for investing abroad-increased return potential and
greater diversification-remain quite sound. However, shareholders should
remember that this fund is likely to be more volatile than a U.S.-only fund,
owing to changes in stock market conditions, currency values, interest rates,
local regulations and economic and political conditions. But given the many
good values currently available in international markets, we believe foreign
equities offer long-term investors an attractive opportunity.
We thank you for your support and look forward to earning your continued
confidence.
Sincerely,
/s/ Anthony L.T. Cragg
Anthony L.T. Cragg
Portfolio Manager
13
<PAGE> 16
[THE STRONG ASIA PACIFIC FUND]
The Strong Asia Pacific Fund seeks maximum capital appreciation by investing
primarily in the equity securities of issuers located in Asia or the Pacific
Basin. While it may invest in companies of any size, its current strategy is to
emphasize small and mid-sized companies, and to hold about 70-100 stocks spread
broadly across industries and sectors, but concentrated in selected countries.
ASIAN MARKETS HOUNDED
BY CORRECTION
According to the Chinese calendar, 1994 was the year of the dog--which is a
fairly accurate assessment of how most Asian markets performed. Excluding
Japan, Asia/Pacific markets as a whole were down 17.5% in 1994.(1) However,
following the often spectacular gains that many of these markets achieved in
1993, a pullback was to be expected. The primary exception was Japan, which
performed well, with a total return of 21.4%.(2) This return helped account for
the MSCI EAFE(R) Index's positive performance for the year, as the Index is
nearly 50% weighted toward Japan.
These difficult conditions resulted in a decline of 5.27% for the Fund in 1994
based on total return. While this performance is disappointing on an absolute
basis, it was significantly better than most Asian markets, and better than
most other Pacific region funds. Our good relative showing reflects our highly
selective investment approach to Asian markets over the past twelve months.
A CLIMATE DEMANDING
JUDICIOUS STOCK-PICKING
Throughout 1994, our general view was that the best offense was a good defense.
We kept a large percentage of assets (usually about 10%) in cash during the
year, although we were careful not to get out of the markets too much in case a
rally materialized. We were also extremely selective in our choice of markets
and stocks. We kept positions light in the more volatile markets--such as Hong
Kong--and maintained a significant weighting in Japan. We also continued to
emphasize natural resource stocks. This strategy helped the Fund benefit from
generally positive earnings growth for aluminum, copper and timber companies,
and provided exposure to Australia and New Zealand, two of the better
performing markets in the Pacific Rim.
[PHOTO]
TOP FIVE HOLDINGS BY COUNTRY
(based on net assets as of 12/31/94)
[BAR GRAPH]
Australia 18.9%
Japan 18.8%
New Zealand 7.7%
Singapore 7.0%
Thailand 6.7%
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
14
<PAGE> 17
FIVE LARGEST STOCK HOLDINGS
(based on net assets as of 12/31/94)
<TABLE>
<CAPTION>
% of Net
Company Description Assets
<S> <C> <C>
Persero PT Indonesian Telecommunications 2.4%
Satellite Corp. ADR
TOC Company, Ltd. Real Estate 2.1%
Woodside Petroleum, Ltd. Oil Field 1.9%
Services & Equipment
East Japan Railway Co. Railroads 1.9%
Carter Holt Harvey, Ltd. Forest & Paper Products 1.8%
</TABLE>
Please see the Schedule of Investments in Securities for a
complete listing of the Fund's portfolio.
A RETURN TO
NORMALCY EXPECTED
After 1993's outstanding performance, investors should not have been too
surprised by a correction in Asia/Pacific markets. Now that prices have become
more reasonable, the positive long-term fundamentals that make investment in
the region so attractive can come to the fore. We believe the economies of
emerging nations in the area will grow at rates far exceeding those of more
mature markets, and the passage of the GATT treaty should create even greater
opportunity.
While many economists anticipate the metamorphosis of these countries into
"mini-Japans," it will not happen overnight. The performance of Asia/Pacific
markets this year shows that they can be volatile, and are not appropriate for
short-term money. But for long-term investors willing to accept the investment,
currency, political and regulatory uncertainties inherent in these markets, the
opportunities can far outweigh the potential risks.
[PHOTO OF ANTHONY L.T. CRAGG]
Thank you for your investment, and we look forward to earning your continued
confidence.
Sincerely,
/s/ ANTHONY L.T. CRAGG
Anthony L.T. Cragg
Portfolio Manager
[GRAPH]
<TABLE>
<CAPTION>
GROWTH OF AN
ASSUMED $10,000 INVESTMENT
from 12/31/93 to 12/31/94
12/93 3/94 6/94 9/94 12/94
<S> <C> <C> <C> <C> <C>
The Strong Asia Pacific Fund 10,000 9,630 9,840 10,116 9,473
Morgan Stanley Capital International EAFE(R) Index 10,000 10,350 10,878 10,889 10,778
Morgan Stanley Capital International Combined 10,000 7,827 8,165 9,173 8,252
Far East Ex-Japan Free Index
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
as of 12/31/94
1-year -5.27%
This graph, prepared in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at the Fund's inception, with similar investments
in the Morgan Stanley Capital International Europe, Australasia, and Far East
Index ("MSCI EAFE(R)"), and the Morgan Stanley Capital International Combined
Far East Ex-Japan Free Index ("MSCI CFE"). Results include the reinvestment of
dividends and capital gains. The MSCI EAFE(R) is an unmanaged,
market-capitalization weighted index generally representative of major overseas
stock markets. Source for the MSCI EAFE(R) Index is Micropal. The MSCI CFE is an
unmanaged, market-capitalization weighted index generally representative of
developed and emerging markets in the Asia/Pacific region, excluding Japan.
Indexes are dollar-adjusted. 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 Fund shares. Please see the Historical Investment
Returns section for more information on the Fund's performance record.
1 Source: Morgan Stanley Capital International. Reflects performance of MSCI
Combined Far East Ex-Japan Free Index.
2 Source: Morgan Stanley Capital International.
15
<PAGE> 18
HISTORICAL INVESTMENT RETURNS(1)
<TABLE>
<CAPTION>
STRONG STRONG STRONG
OPPORTUNITY GROWTH COMMON STOCK
FUND FUND FUND
------------ ------ ------------
<S> <C> <C> <C>
1986 + 59.9%(2) -- --
1987 + 11.9% -- --
1988 + 16.5% -- --
1989 + 18.5% -- --
1990 - 11.3% -- + 1.0%(2)
1991 + 31.7% -- + 57.1%
1992 + 17.4% -- + 20.8%
1993 + 21.2% -- + 25.2%
1994 + 3.2% +17.3%(2) - 0.5%
Since Inception +323.3% +17.3% +138.7%
Average Annual Total Return
--One-Year Period Ended December 31, 1994 + 3.2% +17.3% - 0.5%
--Five-Year Period Ended December 31, 1994 + 11.4% -- + 19.0%
--Inception Date to December 31, 19942 + 17.4% +17.3% + 19.0%
</TABLE>
<TABLE>
<CAPTION>
STRONG STRONG STRONG
DISCOVERY INTERNATIONAL STOCK ASIA PACIFIC
FUND FUND FUND
------------ ------------------- ------------
<S> <C> <C> <C>
1988 + 24.5%(2) -- --
1989 + 24.0% -- --
1990 - 2.7% -- --
1991 + 67.6% -- --
1992 + 1.9% - 1.8%(2) --
1993 + 22.2% +47.8 --
1994 - 5.7% - 1.6 - 5.3%
Since Inception +195.6% +42.8 - 5.3%
Average Annual Total Return
--One-Year Period Ended December 31, 1994 - 5.7% - 1.6% - 5.3%
--Five-Year Period Ended December 31, 1994 + 13.9% -- --
--Inception Date to December 31, 1994(2) + 16.7% +13.5% - 5.3%
<CAPTION>
SUMMARY OF INVESTMENTS
December 31, 1994 ($ In Thousands)
STRONG STRONG
OPPORTUNITY FUND(3) GROWTH FUND(3)
--------------------- ----------------------
<S> <C> <C> <C> <C>
Common and Preferred Stocks $709,515 88% $ 89,999 85%
Corporate Bonds including Convertibles 4,738 1 3,331 3
Cash Equivalents and Other Assets and Liabilities, Net 91,447 11 12,679 12
-------- --- -------- ---
Net Assets $805,700 100% $106,009 100%
======== === ======== ====
<CAPTION>
STRONG STRONG
COMMON STOCK FUND DISCOVERY FUND
--------------------- ----------------------
<S> <C> <C> <C> <C>
Common and Preferred Stocks including Convertibles $706,652 89% $346,551 89%
Cash Equivalents and Other Assets and Liabilities, Net 83,473 11 41,859 11
-------- --- -------- ---
Net Assets $790,125 100% $388,410 100%
======== === ======== ====
</TABLE>
<TABLE>
<CAPTION>
STRONG INTERNATIONAL STRONG
STOCK FUND ASIA PACIFIC FUND
--------------------- ----------------------
<S> <C> <C> <C> <C>
Common and Preferred Stocks including Convertibles $231,895 90% $ 51,356 89%
Corporate Bonds including Convertibles 977 1 555 1
Cash Equivalents and Other Assets and Liabilities, Net 24,958 9 5,813 10
-------- --- -------- ---
Net Assets $257,830 100% $ 57,724 100%
======== === ========== ====
</TABLE>
(1) All performance is historical and does not represent future results.
Investment returns and principal value will vary, and you may have a gain or
loss when you sell shares. Returns assume reinvestment of all dividends and
capital gains distributions.
(2) Respective inception dates are December 31, 1985, for Strong Opportunity
Fund; December 31, 1993, for Strong Growth Fund; December 29, 1989, for
Strong Common Stock Fund; December 31, 1987, for Strong Discovery Fund;
March 4, 1992, for Strong International Stock Fund; and December 31, 1993,
for Strong Asia Pacific Fund.
(3) The Strong Growth Fund's asset allocation does not reflect a short position
in S&P Midcap Stock Index futures representing 0.2% of the net assets of the
Fund, which is intended to decrease the Fund's allocation to stocks and
increase the allocation to cash. The Strong Opportunity Fund's asset
allocation does not reflect a long position in S&P 500 Stock Index futures
representing 2.0% of the net assets of the Fund, which is intended to
increase the Fund's allocation to stocks and decrease the allocation to
cash. (See Note 2(D) in the Notes to Financial Statements.)
16
<PAGE> 19
HISTORICAL RECORD
The following table illustrates an assumed $10,000 investment in each Strong
Growth Fund on the date of the initial public offering, with income dividends,
capital gains and other distributions reinvested in additional shares.
<TABLE>
<CAPTION>
NET ASSET CAPITAL GAINS INCOME GROWTH OF
VALUE PER DISTRIBUTIONS DIVIDENDS AN INITIAL $10,000
SHARE PER SHARE PER SHARE INVESTMENT
---------- -------------- ---------- -------------------
<S> <C> <C> <C> <C>
Strong Opportunity Fund:
*December 31, 1985 $10.00 $ -- $ -- $10,000
December 31, 1986 15.99 -- -- 15,990
December 31, 1987 15.87 1.80 .24 17,894
December 31, 1988 16.90 .18 1.37 20,841
December 31, 1989 19.21 .16 .68 24,694
December 31, 1990 16.29 .04 .74 21,903
December 31, 1991 21.24 -- .19 28,845
December 31, 1992 24.70 .16 .06 33,851
December 31, 1993 28.23 1.57 .06 41,022
December 31, 1994 27.71 1.28 .13 42,325
Strong Growth Fund:
*December 31, 1993 $10.00 $ -- $ -- $10,000
December 31, 1994 11.61 -- .11 11,727
Strong Common Stock Fund:
*December 29, 1989 $10.00 $ -- $ -- $10,000
December 31, 1990 10.02 -- .08 10,100
December 31, 1991 12.84 2.58 -- 15,864
December 31, 1992 15.07 .38 .01 19,161
December 31, 1993 17.94 .87 .04 23,988
December 31, 1994 16.74 1.07 .04 23,872
Strong Discovery Fund:
*December 31, 1987 $10.00 $ -- $ -- $10,000
December 31, 1988 11.44 .03 .97 12,445
December 31, 1989 13.18 .71 .28 15,428
December 31, 1990 12.51 -- .31 15,005
December 31, 1991 17.49 3.43 -- 25,151
December 31, 1992 16.01 1.65 -- 25,639
December 31, 1993 18.05 .98 .45 31,333
December 31, 1994 15.67 .68 .69 29,557
Strong International Stock Fund:
*March 4, 1992 $10.00 $ -- $ -- $10,000
December 31, 1992 9.77 -- .05 9,819
December 31, 1993 14.18 .23 .02 14,508
December 31, 1994 12.65 1.31 .01 14,282
Strong Asia Pacific Fund:
*December 31, 1993 $10.00 $ -- $ -- $10,000
December 31, 1994 9.35 .12 .01 9,473
</TABLE>
* Date of Initial Public Offering
17
<PAGE> 20
SCHEDULE OF INVESTMENTS IN SECURITIES December 31, 1994
STRONG OPPORTUNITY FUND
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -----------------------------------------------------------------
<S> <C>
COMMON STOCKS 88.1%*
UNITED STATES 72.7%*
AGRICULTURE 1.2%*
325,000 Vigoro Corporation $ 9,750,000
BANKING 4.4%*
230,000 Barnett Banks, Inc. 8,826,250
274,500 Old Kent Financial Corporation 8,303,625
490,000 Washington Federal Savings and
Loan Association 8,513,750
360,000 West One Bancorp 9,540,000
-------------
35,183,625
BROADCASTING 1.4%*
130,000 Capital Cities/ABC, Inc. 11,082,500
CELLULAR TELEPHONES 2.4%*
335,000 AirTouch Communications, Inc. + 9,756,875
300,000 United States Cellular Corporation + 9,825,000
-------------
19,581,875
CHEMICALS 1.1%*
946,000 Ethyl Corporation 9,105,250
COMMUNICATIONS, LODGING & ENTERTAINMENT 4.5%*
356,000 Club Med, Inc. 8,277,000
615,000 Comcast Corporation Class A 9,647,813
275,000 The E.W. Scripps Company 8,318,750
455,000 Tele-Communications, Inc. Class A + 9,896,250
-------------
36,139,813
COMPUTERS & SOFTWARE 5.9%*
307,000 Autodesk, Inc. 12,164,875
98,900 BMC Software, Inc. + 5,624,938
223,600 Compaq Computer Corporation + 8,832,200
50,500 Legent Corporation + 1,451,875
150,000 Microsoft Corporation + 9,168,750
281,000 Sun Microsystems, Inc. + 9,975,500
-------------
47,218,138
CONGLOMERATES 1.3%*
226,400 Tyco International, Ltd. 10,754,000
CONSUMER RELATED PRODUCTS 2.3%*
531,300 Warnaco Group, Inc. Class A + 9,164,925
550,000 Whitman Corporation 9,487,500
-------------
18,652,425
ELECTRIC & GAS UTILITIES 1.3%*
340,000 NIPSCO Industries, Inc. 10,115,000
ELECTRICAL & ELECTRONICS 6.1%*
290,000 Arrow Electronics, Inc. + 10,403,750
588,000 Dallas Semiconductor Corporation + 9,775,500
170,000 Hubbell, Inc. Class B 9,052,500
376,600 Marshall Industries + 10,074,050
277,000 Raychem Corporation 9,868,125
-------------
49,173,925
ENERGY RELATED 6.9%*
326,000 Apache Corporation 8,150,000
246,000 Camco International, Inc. 4,643,250
452,600 Devon Energy Corporation 8,259,950
353,000 Dual Drilling Company + 3,000,500
177,800 Kerr McGee Corporation 8,178,800
123,500 Mobil Corporation 10,404,875
489,000 Offshore Logistics, Inc. + 6,357,000
345,000 Seagull Energy Corporation + 6,598,125
-------------
55,592,500
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -----------------------------------------------------------------
<S> <C>
FOOD, BEVERAGE & TOBACCO 2.2%*
162,000 CPC International, Inc. $ 8,626,500
190,000 Hershey Foods Corporation 9,191,250
-------------
17,817,750
INSURANCE & INSURANCE RELATED 2.0%*
113,300 American International Group, Inc. 11,103,400
153,200 Torchmark Corporation 5,342,850
-------------
16,446,250
MEDICAL SERVICES 1.2%*
320,000 WellPoint Health Networks, Inc.
Class A + 9,320,000
MEDICAL SUPPLIES 2.1%*
267,300 McKesson Corporation 8,720,663
244,000 Sybron International Corporation + 8,418,000
-------------
17,138,663
METALS & MINING 3.0%*
440,000 Freeport-McMoRan Copper &
Gold, Inc. Class A 9,350,000
290,000 Newmont Mining Corporation 10,440,000
335,001 Santa Fe Pacific Gold Corporation + 4,313,137
-------------
24,103,137
PHARMACEUTICALS 2.5%*
150,000 Eli Lilly and Company 9,843,750
335,000 Mallinckrodt Group, Inc. 10,008,125
-------------
19,851,875
PUBLISHING 1.4%*
350,000 The Times Mirror Company Class A 10,981,250
REAL ESTATE 0.6%*
241,500 ROC Communities, Inc. 5,071,500
RETAIL 10.2%*
387,000 American Stores Company 10,400,625
124,500 Dayton Hudson Corporation 8,808,375
484,000 Federated Department Stores, Inc. + 9,317,000
445,000 The Kroger Company + 10,735,625
281,000 May Department Stores Company 9,483,750
217,000 J.C. Penney Company, Inc. 9,683,625
311,600 Rite Aid Corporation 7,283,650
609,000 Ross Stores, Inc. 6,851,250
372,000 The Stop & Shop Companies, Inc. + 9,486,000
-------------
82,049,900
TELECOMMUNICATIONS 3.1%*
57,100 LIN Broadcasting Corporation + 7,622,850
28,550 LIN Television Corporation + 649,512
395,000 MCI Communications Corporation 7,258,125
282,500 Paging Network, Inc. + 9,605,000
-------------
25,135,487
TIRES & RUBBER 1.2%*
297,000 The Goodyear Tire & Rubber Company 9,986,625
TRANSPORTATION 3.3%*
190,000 AMR Corporation + 10,117,500
186,000 Alexander & Baldwin, Inc. 4,138,500
326,300 J.B. Hunt Transport Services, Inc. 4,976,075
635,000 Rollins Truck Leasing Corporation 7,540,625
-------------
26,772,700
</TABLE>
See notes to financial statements.
18
<PAGE> 21
SCHEDULE OF INVESTMENTS IN SECURITIES
STRONG OPPORTUNITY FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -----------------------------------------------------------------
<S> <C>
WASTE CONTROL 1.1%*
320,000 Browning-Ferris Industries, Inc. $ 9,080,000
-------------
Total United States 586,104,188
FOREIGN 15.4%*
ARGENTINA 1.0%*
ENERGY RELATED
395,000 YPF Sociedad Anonima ADR (USD) 8,443,125
AUSTRALIA 0.6%*
CONSTRUCTION 0.1%*
1,435,000 Walker Corporation, Ltd. 800,730
METALS & MINING 0.5%*
1,320,000 Normandy Poseidon, Ltd. 1,923,240
800,000 Poseidon Gold, Ltd. 1,674,000
-------------
3,597,240
-------------
4,397,970
BERMUDA 1.1%*
REAL ESTATE
410,000 Partners RE Holdings, Ltd. (USD) 8,507,500
CANADA 1.0%*
ENERGY RELATED
456,000 Talisman Energy, Inc. + 7,646,639
FRANCE 0.2%*
CONGLOMERATES
9,000 Chargeurs 1,966,642
HONG KONG 2.3%*
BANKING 0.9%*
68,900 HSBC Holdings PLC ADR (USD) 7,435,852
CONGLOMERATES 0.4%*
450,000 Jardine Matheson Holdings, Ltd. 3,213,455
METALS & MINING 0.4%*
74,000 Western Deep Levels, Ltd. ADR (USD) 2,969,250
REAL ESTATE 0.4%*
1,499,000 Hongkong Land Holdings, Ltd. 2,925,540
UTILITIES 0.2%*
386,000 China Light & Power Company,
Ltd. ADR (USD) 1,646,375
-------------
18,190,472
MEXICO 0.6%*
AUTOMOTIVE RELATED
55,000 Consorcio G Grupo Dina
S.A. de C.V. ADR (USD) 522,500
527,000 Consorcio G Grupo Dina
S.A. de C.V.
Series L ADR (USD) 3,952,500
-------------
4,475,000
NEW ZEALAND 1.4%*
FOOD, BEVERAGE & TOBACCO 0.3%*
1,438,000 Lion Nathan, Ltd. 2,741,697
FOREST & PAPER PRODUCTS 0.5%*
1,800,000 Fletcher Challenge, Ltd.
Forestry Division 2,153,567
640,000 Fletcher Challenge, Ltd.
Ordinary Division 1,502,762
-------------
3,656,329
TRANSPORTATION 0.6%*
1,636,000 Air New Zealand, Ltd. Class B 5,128,892
-------------
11,526,918
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -----------------------------------------------------------------
<S> <C>
NORWAY 1.2%*
ENERGY RELATED
520,000 Petroleum Geo-Services A/S
ADR (USD) + $ 9,685,000
SINGAPORE 0.6%*
BANKING 0.4%*
350,000 The Development Bank of
Singapore, Ltd. (Fgn Reg) 3,603,294
TRANSPORTATION 0.2%*
170,000 Singapore Airlines, Ltd.
(Fgn Reg) 1,563,487
-------------
5,166,781
SOUTH AFRICA 1.1%*
METALS & MINING
366,500 De Beers Consolidated Mines,
Ltd. ADR (USD) 8,566,937
SWITZERLAND 1.1%*
FOOD, BEVERAGE & TOBACCO
185,500 Nestle SA Sponsored ADR (USD) 8,837,981
UNITED KINGDOM 3.2%*
COMMUNICATIONS, LODGING & ENTERTAINMENT 1.2%*
485,000 Bell Cablemedia PLC ADR (USD) + 9,821,250
CONGLOMERATES 0.8%*
2,550,000 Lonrho PLC 6,069,816
METALS & MINING 0.3%*
208,000 The RTZ Corporation PLC 2,693,771
TELECOMMUNICATIONS 0.9%*
169,000 Reuters Holdings PLC ADR (USD) 7,414,875
-------------
25,999,712
-------------
Total Foreign 123,410,677
-------------
Total Common Stocks
(Cost $660,983,960) 709,514,865
CONVERTIBLE CORPORATE BONDS 0.6%*
$ 1,500,000 CII Financial, Inc.
Convertible Subordinated
Debentures, 7.50%, Due 9/15/01 1,012,500
2,185,000 LSI Logic Corporation Convertible
Subordinated Notes, 5.50%, Due
3/15/01 (Acquired 3/16/94-7/6/94;
Cost $2,194,125) (r) 3,725,425
-------------
Total Convertible Corporate Bonds
(Cost $3,548,503) 4,737,925
CASH EQUIVALENTS 11.4%*
COMMERCIAL PAPER 11.2%*
DISCOUNTED 11.1%*
14,000,000 American Home Products Corporation
Due 1/05/95 13,995,333
17,000,000 Anadarko Petroleum Corporation
Due 1/06/95 16,991,004
19,000,000 Baxter International, Inc.
Due 1/05/95 18,993,455
2,400,000 Enserch, Inc.
Due 1/03/95 2,400,000
7,600,000 Renaissance Energy Company
Due 1/03/95 7,600,000
4,900,000 Textron, Inc.
Due 1/12/95 4,892,552
25,000,000 Tyson Foods, Inc.
Due 1/12/95 24,961,563
-------------
89,833,907
INTEREST BEARING, DUE UPON DEMAND 0.1%*
375,900 BarclaysAmericanCorp., 5.80% 375,900
-------------
Total Commercial Paper 90,209,807
</TABLE>
See notes to financial statements.
19
<PAGE> 22
SCHEDULE OF INVESTMENTS IN SECURITIES (Continued) December 31, 1994
STRONG OPPORTUNITY FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -----------------------------------------------------------------
<S> <C>
UNITED STATES GOVERNMENT ISSUES 0.2%*
United States Treasury Bills:
$750,000 Due 2/09/95 $ 746,266
345,000 Due 2/23/95 342,537
610,000 Due 3/02/95 604,693
75,000 Due 3/09/95 74,263
-------------
1,767,759
-------------
Total Cash Equivalents
(Cost $91,977,338) 91,977,566
-------------
TOTAL INVESTMENTS IN SECURITIES
(COST $756,509,801) 100.1%* 806,230,356
Other Assets and Liabilities,
Net (0.1%)* (529,889)
-------------
NET ASSETS 100.0%* $805,700,467
=============
<CAPTION>
STRONG GROWTH FUND
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -----------------------------------------------------------------
<S> <C>
COMMON STOCKS 83.7%*
UNITED STATES 82.9%*
AUTOMOTIVE RELATED 3.3%*
30,000 American Electronic Components,
Inc. + $ 262,500
15,000 Danaher Corporation 783,750
27,000 Exide Corporation 1,518,750
25,000 Wabash National Corporation 975,000
-------------
3,540,000
BANKING 1.0%*
25,000 Citicorp 1,034,375
BUSINESS SERVICES 3.3%*
40,000 ABR Information Services, Inc. + 810,000
24,000 Alco Standard Corporation 1,506,000
31,000 Gartner Group, Inc. Class A+ 1,209,000
-------------
3,525,000
CHEMICALS 1.1%*
20,000 Great Lakes Chemical Corporation 1,140,000
COMMUNICATIONS, LODGING & ENTERTAINMENT 0.8%*
18,000 The Walt Disney Company 830,250
COMPUTERS & SOFTWARE 14.4%*
25,000 Broderbund Software, Inc. + 1,168,750
50,000 Cisco Systems, Inc. + 1,756,250
20,000 Digital Equipment Corporation + 665,000
57,000 EMC Communications Corporation + 1,232,625
38,000 Epic Design Technology, Inc. + 855,000
11,000 FORE Systems, Inc. + 742,500
50,000 Informix Corporation + 1,606,250
15,000 Infosoft International, Inc. + 526,875
15,000 Microsoft Corporation + 916,875
35,000 MicroTouch Systems, Inc. + 1,575,000
25,000 Silicon Graphics, Inc. + 771,875
44,000 StrataCom, Inc. + 1,540,000
27,000 3Com Corporation + 1,392,188
41,000 Wavefront Technologies, Inc. + 517,625
-------------
15,266,813
CONSUMER RELATED PRODUCTS 4.0%*
15,000 Cobra Golf, Inc. + 536,250
12,000 The Gillette Company 897,000
31,000 Harley-Davidson, Inc. 868,000
31,000 St. John Knits, Inc. 887,375
23,000 Tommy Hilfiger Corporation + 1,037,875
-------------
4,226,500
<CAPTION>
STRONG GROWTH FUND (continued)
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -----------------------------------------------------------------
<S> <C>
ELECTRICAL & ELECTRONICS 6.4%*
22,000 Atmel Corporation + $ 737,000
10,000 Hewlett-Packard Company 998,750
8,400 Intel Corporation 536,550
50,000 International Rectifier Corporation + 1,212,500
20,000 LSI Logic Corporation + 807,500
20,000 Microchip Technology, Inc. + 550,000
30,000 Oak Industries, Inc. + 686,250
16,000 Ultratech Stepper, Inc. + 608,000
11,000 Xilinx, Inc. + 651,750
-------------
6,788,300
FINANCIAL SERVICES 1.7%*
10,000 EquiCredit Corporation + 318,750
25,000 Green Tree Financial Corporation 759,375
30,000 MBNA Corporation 701,250
-------------
1,779,375
FOOD, BEVERAGE & TOBACCO 2.0%*
27,000 The Coca-Cola Company 1,390,500
12,000 Philip Morris Companies, Inc. 690,000
-------------
2,080,500
INDUSTRIAL 0.9%*
45,000 Federal Signal Corporation 916,875
INSURANCE & INSURANCE RELATED 1.6%*
52,000 MGIC Investment Corporation 1,722,500
MANUFACTURING 1.3%*
45,000 NN Ball & Roller, Inc. 855,000
30,000 Pall Corporation 562,500
-------------
1,417,500
MEDICAL SERVICES 4.7%*
45,000 Humana, Inc. + 1,018,125
26,000 Integrated Health Services, Inc. 1,027,000
39,000 Lincare Holdings, Inc. + 1,131,000
21,000 Medaphis Corporation + 976,500
25,000 Sierra Health Services, Inc. + 790,625
-------------
4,943,250
MEDICAL SUPPLIES 7.8%*
25,000 Abbott Laboratories 815,625
20,000 Arrow International, Inc. 680,000
30,000 Biomet, Inc. + 420,000
20,000 Cardinal Health, Inc. 927,500
22,000 Johnson & Johnson 1,204,500
25,000 Medtronic, Inc. 1,390,625
150,000 Quest Medical, Inc. + 787,500
31,000 Stryker Corporation 1,139,250
25,000 Sybron International Corporation + 862,500
-------------
8,227,500
PHARMACEUTICALS 7.2%*
20,000 Amgen, Inc. + 1,180,000
80,000 Circa Pharmaceuticals, Inc. + 1,430,000
40,000 Dura Pharmaceuticals, Inc. + 580,000
30,000 Merck & Company, Inc. 1,143,750
16,000 Pfizer, Inc. 1,236,000
30,000 R.P. Scherer Corporation + 1,361,250
25,000 Watson Pharmaceuticals, Inc. + 656,250
-------------
7,587,250
RAILROADS 0.4%*
10,000 Wisconsin Central Transportation
Corporation+ 412,500
</TABLE>
See notes to financial statements.
20
<PAGE> 23
SCHEDULE OF INVESTMENTS IN SECURITIES
STRONG GROWTH FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -------------------------------------------------------------------
<S> <C>
RETAIL 11.9%*
40,000 Albertson's, Inc. $ 1,160,000
50,000 Books-A-Million, Inc. + 843,750
32,000 Dollar General Corporation 960,000
16,800 Ellett Brothers, Inc. 252,000
34,000 Hollywood Entertainment Corporation + 1,028,500
75,000 Just For Feet, Inc. + 1,284,375
18,000 Kohl's Corporation + 715,500
30,000 OfficeMax, Inc. + 795,000
30,000 Safeway, Inc. + 956,250
37,000 Staples, Inc. + 915,750
55,000 Sunglass Hut International, Inc. + 1,265,000
25,000 Urban Outfitters, Inc. + 681,250
20,000 Viking Office Products, Inc. + 612,500
27,000 Walgreen Company 1,181,250
-------------
12,651,125
STEEL 1.1%*
22,000 Nucor Corporation 1,221,000
TELECOMMUNICATIONS 7.0%*
18,000 Andrew Corporation + 940,500
40,000 Applied Digital Access, Inc. + 1,015,000
40,000 DSC Communications Corporation + 1,435,000
34,000 Motorola, Inc. 1,967,750
20,000 ORTEL Corporation + 525,000
28,000 Tellabs, Inc. + 1,561,000
-------------
7,444,250
TRANSPORTATION 1.0%*
43,000 Knight Transportation, Inc. + 612,750
15,000 Landstar System, Inc. + 491,250
-------------
1,104,000
-------------
Total United States 87,858,863
FOREIGN 0.8%*
UNITED KINGDOM
BUSINESS SERVICES
40,000 Danka Business Systems PLC ADR (USD) 865,000
-------------
Total Common Stocks
(Cost $82,303,481) 88,723,863
PREFERRED STOCK 1.2%*
FOREIGN
FINLAND
17,000 Nokia Corporation Preferred
ADR (USD) + (Cost $1,257,596) 1,275,000
CONVERTIBLE CORPORATE BONDS 3.1%*
$ 500,000 First Financial Management
Corporation Senior Convertible
Debentures, 5.00%, Due 12/15/99 518,750
300,000 General Instrument Corporation
Junior Subordinated Convertible
Notes, 5.00%, Due 6/15/00 402,000
700,000 Home Depot, Inc. Convertible
Subordinated Notes, 4.50%,
Due 2/15/97 833,000
300,000 Medaphis Corporation Convertible
Subordinated Debentures, 6.50%,
Due 1/01/00 (Acquired 4/8/94-
4/29/94; Cost $411,750)(r) 501,750
2,000,000 Office Depot, Inc. Subordinated
Liquid Yield Option Notes, Zero %,
Due 11/01/08 1,075,000
-------------
Total Convertible Corporate Bonds
(Cost $3,268,766) 3,330,500
CASH EQUIVALENTS 17.8%*
COMMERCIAL PAPER 5.4%*
DISCOUNTED 4.2%*
4,500,000 Tyson Foods, Inc. Due 1/05/95 4,498,458
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -----------------------------------------------------------------
<S> <C>
INTEREST BEARING, DUE UPON DEMAND 1.2%*
$ 19,200 BarclaysAmericanCorp., 5.80% $ 19,200
162,500 General Mills, Inc., 5.73% 162,500
192,400 Pitney Bowes Credit Corporation,
5.73% 192,400
185,700 Sara Lee Corporation, 5.71% 185,700
655,700 Wisconsin Electric Power Company,
5.77% 655,700
------------
1,215,500
------------
Total Commercial Paper 5,713,958
REPURCHASE AGREEMENT 12.4%*
13,100,000 Goldman Sachs & Company, 5.15%,
Due 1/03/95 (Collateralized by
$10,225,000 United States
Treasury Bonds, 12.375%, Due
5/15/04)** 13,100,000
UNITED STATES GOVERNMENT ISSUES 0.0%*
United States Treasury Bills:
10,000 Due 2/02/95 9,956
10,000 Due 2/09/95 9,946
------------
19,902
------------
Total Cash Equivalents
(Cost $18,833,860) 18,833,860
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $105,663,703) 105.8%* 112,163,223
Other Assets and Liabilities,
Net (5.8%*) (6,154,185)
------------
NET ASSETS 100.0%* $106,009,038
============
<CAPTION>
STRONG COMMON STOCK FUND
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -----------------------------------------------------------------
<S> <C>
COMMON STOCKS 89.5%*
UNITED STATES 74.3%*
AGRICULTURE 0.8%*
190,000 Pioneer Hi-Bred
International, Inc. $ 6,555,000
AIRCRAFT & AEROSPACE 0.4%*
280,000 Nichols Research Corporation+ 3,570,000
AUTOMOTIVE RELATED 1.8%*
420,000 Automotive Industries Holding,
Inc. Class A+ 8,505,000
185,900 Littelfuse, Inc.+ 5,437,575
------------
13,942,575
BANKING 3.8%*
268,000 Brooklyn Bancorp, Inc.+ 8,107,000
204,800 Norwest Corporation 4,787,200
290,000 Old Kent Financial Corporation 8,772,500
495,000 Washington Federal Savings and
Loan Association 8,600,625
------------
30,267,325
BROADCASTING 2.7%*
135,000 Capital Cities/ABC, Inc. 11,508,750
585,000 Turner Broadcasting System,
Inc. Class B 9,579,375
------------
21,088,125
CELLULAR TELEPHONES 2.9%*
385,000 AirTouch Communications, Inc.+ 11,213,125
350,000 United States Cellular Corporation+ 11,462,500
------------
22,675,625
CHEMICALS 1.2%*
459,000 Ecolab, Inc. 9,639,000
COMMUNICATIONS, LODGING & ENTERTAINMENT 3.2%*
341,000 Commerce Clearing House, Inc.
Class A 5,797,000
176,500 Commerce Clearing House, Inc.
Class B 2,735,750
470,000 International Family
Entertainment, Inc. Class B+ 5,933,750
500,000 Tele-Communications, Inc.
Class A + 10,875,000
------------
25,341,500
</TABLE>
See notes to financial statements.
21
<PAGE> 24
SCHEDULE OF INVESTMENTS IN SECURITIES December 31, 1994
STRONG COMMON STOCK FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -----------------------------------------------------------------
<S> <C>
COMPUTERS & SOFTWARE 4.8%*
310,000 Autodesk, Inc. $12,283,750
222,000 Compaq Computer Corporation+ 8,769,000
360,000 Quantum Corporation+ 5,445,000
225,000 Seagate Technology, Inc.+ 5,400,000
383,000 Software Spectrum, Inc.+ 5,745,000
------------
37,642,750
CONSTRUCTION 2.2%*
165,000 Foster Wheeler Corporation 4,908,750
480,000 TJ International 8,520,000
195,000 USG Corporation+ 3,802,500
------------
17,231,250
CONSUMER RELATED PRODUCTS 2.3%*
390,000 IHOP Corporation+ 10,627,500
445,000 Libbey, Inc. 7,787,500
------------
18,415,000
ELECTRICAL & ELECTRONICS 6.4%*
475,000 Belden, Inc. 10,568,750
430,000 Cirrus Logic, Inc.+ 9,675,000
145,000 Intel Corporation 9,261,875
415,000 Marshall Industries+ 11,101,250
130,000 Texas Instruments, Inc. 9,733,750
------------
50,340,625
ENERGY RELATED 10.1%*
320,000 Apache Corporation 8,000,000
360,000 Cabot Corporation 10,215,000
477,000 Devon Energy Corporation 8,705,250
488,500 H S Resources, Inc.+ 8,609,812
677,000 Offshore Logistics, Inc.+ 8,801,000
270,000 Phillips Petroleum Company 8,842,500
305,600 Seagull Energy Corporation+ 5,844,600
547,000 Sonat Offshore Drilling, Inc. 9,709,250
525,000 Union Texas Petroleum
Holdings, Inc. 10,893,750
------------
79,621,162
FOOD, BEVERAGE & TOBACCO 1.1%*
390,000 Dole Food Company, Inc. 8,970,000
MEDICAL SERVICES 2.8%*
385,000 FHP International Corporation+ 9,913,750
49,300 Healthtrust, Inc. - The Hospital
Company+ 1,565,275
740,000 National Medical Enterprises, Inc.+ 10,452,500
------------
21,931,525
MEDICAL SUPPLIES 2.3%*
245,000 Invacare Corporation 8,391,250
280,000 Sybron International Corporation+ 9,660,000
------------
18,051,250
METALS & MINING 5.3%*
335,000 Asarco, Inc. 9,547,500
900,000 Battle Mountain Gold Company 9,900,000
461,700 Freeport-McMoRan, Inc. 8,195,175
263,000 Newmont Mining Company 9,468,004
345,000 Santa Fe Pacific Gold Corporation+ 4,441,875
------------
41,552,554
OIL FIELD SERVICES & EQUIPMENT 1.0%*
422,000 Tidewater, Inc. 7,807,000
PHARMACEUTICALS 1.3%*
152,000 Eli Lilly and Company 9,975,000
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -----------------------------------------------------------------
<S> <C>
PUBLISHING 1.3%*
330,000 The Times Mirror Company Class A $ 10,353,750
RAILROADS 1.3%*
242,500 Wisconsin Central Transportation
Corporation+ 10,003,125
REAL ESTATE 1.2%*
555,000 Apartment Investment and
Management Company 9,573,750
RETAIL 8.4%*
425,000 American Stores Company 11,421,875
468,000 The Kroger Company+ 11,290,500
287,500 Melville Corporation 8,876,563
880,000 Musicland Stores Corporation+ 7,920,000
219,000 J.C. Penney Company, Inc. 9,772,875
512,000 The United States Shoe Corporation 9,600,000
460,000 The Vons Companies, Inc.+ 8,280,000
------------
67,161,813
TELECOMMUNICATIONS 4.4%*
81,000 LIN Broadcasting Corporation+ 10,813,500
40,500 LIN Television Corporation+ 921,375
332,300 Paging Network, Inc.+ 11,298,200
175,000 Rochester Telephone Corporation 3,696,875
305,000 Sprint Corporation 8,425,625
------------
35,155,575
TRANSPORTATION 1.3%*
20,000 Delta Air Lines, Inc. 1,010,000
805,000 Rollins Truck Leasing Corporation 9,559,375
------------
10,569,375
------------
Total United States 587,434,654
FOREIGN 15.2%*
AUSTRALIA 0.7%*
COMMUNICATIONS, LODGING & ENTERTAINMENT 0.3%*
4,100,000 Accor Asia Pacific Company, Ltd. 2,414,900
FINANCIAL SERVICES 0.4%*
266,000 Lend Lease Corporation, Ltd. 3,290,154
------------
5,705,054
BERMUDA 2.6%*
INSURANCE & INSURANCE RELATED
435,000 Partners RE Holdings, Ltd. ADR (USD) 9,026,250
115,000 Tempest Reinsurance Company, Ltd.
(Acquired 9/15/93; Cost
$11,500,000) (r)+ 11,514,950
------------
20,541,200
FRANCE 0.4%*
CONGLOMERATES 0.2%*
8,000 Charguers 1,748,126
TELECOMMUNICATIONS 0.2%*
18,000 Alcatel Cable 1,481,559
------------
3,229,685
HONG KONG 2.2%*
BANKING 1.1%*
82,000 HSBC Holdings PLC ADR (USD) 8,849,637
CONGLOMERATES 0.4%*
448,000 Jardine Matheson Holdings, Ltd. 3,199,173
REAL ESTATE 0.2%*
640,000 Hysan Development Company, Ltd. 1,269,743
</TABLE>
See notes to financial statements.
22
<PAGE> 25
STRONG COMMON STOCK FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -----------------------------------------------------------------
<S> <C>
TRANSPORTATION 0.5%*
2,920,000 Cathay Pacific Airways, Ltd. $ 4,245,832
------------
17,564,385
NEW ZEALAND 1.9%*
CONGLOMERATES 0.4%*
4,220,000 Brierly Investments, Ltd. 3,050,950
FOOD, BEVERAGE & TOBACCO 0.4%*
1,615,000 Lion Nathan, Ltd. 3,079,165
FOREST & PAPER PRODUCTS 1.0%*
4,000,000 Carter Holt Harvey, Ltd. 8,189,440
PHARMACEUTICALS 0.1%*
148,800 Fernz Corporation, Ltd. 461,731
------------
14,781,286
SINGAPORE 0.8%*
BANKING 0.4%*
310,000 The Development Bank of Singapore,
Ltd. (Fgn Reg) 3,191,489
TRANSPORTATION 0.4%*
390,000 Jurong Shipyards, Ltd. 2,997,941
------------
6,189,430
SOUTH AFRICA 1.2%*
METALS & MINING
415,000 De Beers Consolidated Mines,
Ltd. ADR (USD) 9,700,625
SWEDEN 2.4%*
CONGLOMERATES 1.2%*
126,000 Asea AB 9,209,956
MEDICAL SUPPLIES 1.0%*
230,000 Arjo AB+ 4,210,696
90,000 Arjo AB ADR (USD) (Acquired 11/05/93,
11/09/93; Cost $2,485,750) (r) 3,295,350
------------
7,506,046
METALS & MINING 0.2%*
70,500 Terra Mining AB 1,850,593
-----------
18,566,595
SWITZERLAND 1.3%*
FOOD, BEVERAGE & TOBACCO
214,000 Nestle SA Sponsored ADR (USD) 10,195,837
THAILAND 0.2%*
CONSTRUCTION
Sino-Thai Engineering and
Construction:
60,900 (Fgn Reg) 800,837
37,700 (Loc Reg) 495,756
------------
1,296,593
UNITED KINGDOM 1.5%*
COMMUNICATIONS, LODGING & ENTERTAINMENT 1.2%*
470,000 Bell Cablemedia PLC ADR (USD)+ 9,517,500
OTHER 0.3%*
735,000 Huntingdon International
Holdings PLC (USD) 1,929,375
------------
11,446,875
------------
Total Foreign 119,217,565
------------
Total Common Stocks
(Cost $660,559,597) 706,652,219
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -----------------------------------------------------------------
<S> <C>
CASH EQUIVALENTS 10.2%*
COMMERCIAL PAPER 8.6%*
DISCOUNTED 8.5%*
$12,000,000 American Home Products
Corporation Due 1/05/95 $ 11,996,000
Baxter International, Inc.:
9,800,000 Due 1/03/95 9,800,000
6,000,000 Due 1/05/95 5,997,933
9,695,000 Burlington Resources, Inc.
Due 1/09/95 9,684,901
10,000,000 Enserch, Inc.
Due 1/03/95 10,000,000
5,000,000 Pet, Inc.
Due 1/05/95 4,998,278
15,000,000 Tyson Foods, Inc.
Due 1/05/95 14,994,833
------------
67,471,945
INTEREST BEARING, DUE UPON DEMAND 0.1%*
100 BarclaysAmericanCorp., 5.80% 100
451,400 Sara Lee Corporation, 5.71% 451,400
------------
451,500
------------
Total Commercial Paper 67,923,445
UNITED STATES GOVERNMENT ISSUES 1.6%*
United States Treasury Bills:
7,500,000 Due 2/02/95 7,467,313
5,500,000 Due 2/09/95 5,470,436
------------
12,937,749
------------
Total Cash Equivalents
(Cost $80,861,194) 80,861,194
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $741,420,791) 99.7%* 787,513,413
Other Assets and Liabilities,
Net 0.3%* 2,611,414
------------
NET ASSETS 100.0%* $790,124,827
============
<CAPTION>
STRONG DISCOVERY FUND
Shares or Value
Principal Amount (Note 2)
- - - -----------------------------------------------------------------
<S> <C>
COMMON STOCKS 87.7%*
UNITED STATES 74.3%*
AIRCRAFT & AEROSPACE 0.8%*
12,000 Boeing Company $ 561,000
18,000 McDonnell Douglas Corporation 2,556,000
------------
3,117,000
AUTOMOTIVE RELATED 2.3%*
90,000 Exide Corporation 5,062,500
65,000 General Motors Corporation 2,746,250
94,000 Thompson PBE, Inc. + 1,233,750
------------
9,042,500
BANKING 1.2%*
40,000 Citicorp 1,655,000
20,000 Wells Fargo & Company 2,900,000
------------
4,555,000
BROADCASTING 1.7%*
70,000 Broadcasting Partners, Inc. + 1,076,250
29,000 CBS, Inc. 1,605,875
17,000 Century Communications Corporation
Class A + 127,500
5,000 Citicasters, Inc. + 123,750
7,000 Infinity Broadcasting Corporation + 220,500
130,000 SFX Broadcasting, Inc. + 2,405,000
51,000 Young Broadcasting, Inc. + 905,250
------------
6,464,125
</TABLE>
See notes to financial statements.
23
<PAGE> 26
SCHEDULE OF INVESTMENTS IN SECURITIES (continued) December 31, 1994
STRONG DISCOVERY FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -----------------------------------------------------------------------
<S> <C>
BUSINESS SERVICES 1.4%*
30,000 Alco Standard Corporation $ 1,882,500
90,000 Career Horizons Corporation + 1,462,500
94,000 Corporate Express, Inc. + 1,833,000
7,000 Manpower, Inc. 196,875
------------
5,374,875
CELLULAR TELEPHONES 0.3%*
40,000 AirTouch Communications, Inc. + 1,165,000
COMMUNICATIONS, LODGING & ENTERTAINMENT 3.1%*
80,000 Carmike Cinemas, Inc. + 1,840,000
190,000 Comcast Corporation Class A 2,980,625
13,000 The Walt Disney Company 599,625
40,000 Host Marriott Corporation + 385,000
61,000 Promus Companies, Inc. + 1,891,000
90,000 Regal Cinemas, Inc. + 2,295,000
50,000 Viacom International, Inc. + 2,031,250
------------
12,022,500
COMPUTERS & SOFTWARE 8.8%*
70,000 Aspen Technology, Inc. + 1,373,750
14,000 CDW Computer Centers, Inc. + 477,750
75,000 Cisco Systems, Inc. + 2,634,375
34,000 Computer Associates International,
Inc. 1,649,000
174,000 Compuware Corporation + 6,264,000
370,000 EMC Communications Corporation + 8,001,250
23,000 IMRS, Inc. + 908,500
130,000 Informix Corporation + 4,176,250
30,000 International Business Machines
Corporation 2,205,000
120,000 Mentor Graphics Corporation + 1,830,000
12,000 Microsoft Corporation + 733,500
33,000 MicroTouch Systems, Inc. + 1,485,000
20,000 Oracle Systems Corporation + 882,500
20,000 Sun Microsystems, Inc. + 710,000
25,000 Synopsys, Inc. + 1,093,750
------------
34,424,625
CONGLOMERATES 0.2%*
87,500 Jason, Inc. (Acquired 1/21/94;
Cost $770,000) (r)+ 635,250
CONSUMER RELATED PRODUCTS 4.9%*
48,000 CUC International, Inc. + 1,608,000
15,000 Eastman Kodak Company 716,250
420,000 Fingerhut Companies, Inc. 6,510,000
150,000 Harley-Davidson, Inc. 4,200,000
79,000 Herbalife International, Inc. 1,333,125
13,000 IHOP Corporation + 354,250
10,000 Mattel, Inc. 251,250
10,000 The Rival Company 175,000
143,000 Service Corporation International 3,968,250
------------
19,116,125
ELECTRICAL & ELECTRONICS 2.5%*
30,000 Intel Corporation 1,916,250
95,000 International Rectifier Corporation + 2,303,750
41,000 Mattson Technology, Inc. + 789,250
41,000 Methode Electronics, Inc. Class A 697,000
104,000 National Semiconductor Corporation + 2,028,000
113,000 Powell Industries, Inc. + 635,625
37,000 Sensormatic Electronics Corporation 1,332,000
------------
9,701,875
ENERGY RELATED 0.4%*
36,000 Anadarko Petroleum Corporation 1,386,000
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - ------------------------------------------------------------------
<S> <C>
FINANCIAL SERVICES 1.7%*
35,000 American Express Company $ 1,032,500
13,000 First Financial Management
Corporation 801,125
24,000 First USA, Inc. 789,000
260,000 Mercury Finance Company 3,380,000
35,000 SafeCard Services, Inc. 660,625
------------
6,663,250
FOOD, BEVERAGE & TOBACCO 2.5%*
144,000 American Family Restaurants, Inc. + 522,000
65,000 Boston Chicken, Inc. + 1,129,375
74,000 Brinker International, Inc. + 1,341,250
92,000 Canandaigua Wine Company, Inc. + 3,496,000
89,000 DF & R Restaurants, Inc. 1,323,875
70,000 Quality Dining, Inc. + 866,250
30,000 Starbucks Corporation + 825,000
38,000 Stokely USA, Inc. + 218,500
------------
9,722,250
FOREST & PAPER PRODUCTS 1.1%*
43,000 Minerals Technologies, Inc. 1,257,750
42,000 Scott Paper Company 2,903,250
15,000 Specialty Paperboard, Inc. + 168,750
------------
4,329,750
INSURANCE & INSURANCE RELATED 0.6%*
50,000 TIG Holdings, Inc. 937,500
51,000 Vesta Insurance Group, Inc. 1,453,500
------------
2,391,000
MANUFACTURING 0.5%*
7,000 Applied Power, Inc. 177,625
64,000 AptarGroup, Inc. 1,840,000
------------
2,017,625
MEDICAL SERVICES 6.3%*
20,000 Medaphis Corporation + 930,000
677,000 National Medical Enterprises, Inc. + 9,562,625
451,000 Ornda Healthcorp + 5,637,500
220,000 Value Health, Inc. + 8,195,000
------------
24,325,125
MEDICAL SUPPLIES 1.7%*
55,000 McKesson Corporation 1,794,375
46,000 Omnicare, Inc. 2,018,250
100,000 Patterson Dental Company + 2,075,000
20,000 Sybron International Corporation + 690,000
------------
6,577,625
METALS & MINING 6.1%*
99,000 American Barricks Resources
Corporation 2,202,750
60,000 Cyprus Amax Minerals Company 1,567,500
45,000 Newmont Mining Company 1,619,993
1,440,000 Santa Fe Pacific Gold Corporation + 18,540,000
------------
23,930,243
OFFICE EQUIPMENT 0.7%*
30,000 Xerox Corporation 2,970,000
OIL FIELD SERVICES & EQUIPMENT 0.4%*
140,000 Energy Service Company, Inc. + 1,715,000
PETROLEUM 1.6%*
76,000 Box Energy Corporation Class B + 817,000
66,000 Cross Timber Oil Company 990,000
70,000 Enron Corporation 2,135,000
214,000 Flores & Rucks, Inc. + 2,247,000
------------
6,189,000
</TABLE>
See notes to financial statements.
24
<PAGE> 27
STRONG DISCOVERY FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -----------------------------------------------------------------
<S> <C>
PHARMACEUTICALS 0.3%*
27,000 R.P. Scherer Corporation + $ 1,225,125
PUBLISHING 1.1%*
130,000 The Times Mirror Company Class A 4,078,750
RAILROADS 1.2%*
15,000 Burlington Northern, Inc. 721,875
150,000 Santa Fe Pacific Corporation 2,625,000
29,000 Wisconsin Central Transportation
Corporation + 1,196,250
------------
4,543,125
REAL ESTATE 6.6%*
150,000 Associated Estates Realty Corporation 3,150,000
70,000 Duke Realty Investments, Inc. 1,977,500
190,000 Equity Inns, Inc. + 2,090,000
127,000 General Growth Properties, Inc. 2,873,375
57,000 JDN Realty Corporation 1,140,000
108,000 Merry Land & Investment Company, Inc. 2,362,500
60,000 Mid-America Apartment Communities,
Inc. 1,605,000
225,000 RFS Hotel Investors, Inc. 3,290,625
151,000 ROC Communities, Inc. 3,171,000
40,000 Storage USA, Inc. 1,100,000
124,000 Weeks Corporation 2,712,500
11,000 Wellsford Residential Property Trust 231,000
------------
25,703,500
RETAIL 8.1%*
98,000 Best Products Company, Inc. + 637,000
83,000 Damark International, Inc. Class A + 684,750
15,000 Dollar General Corporation 450,000
43,000 Eckerd Corporation + 1,284,625
342,000 Federated Department Stores, Inc. + 6,583,500
50,000 The Home Depot, Inc. 2,300,000
152,000 Just For Feet, Inc. + 2,603,000
120,000 Micro Warehouse, Inc. + 4,200,000
243,800 Movie Gallery, Inc. + 6,338,800
228,000 Office Depot, Inc. + 5,472,000
42,000 OfficeMax, Inc. + 1,113,000
------------
31,666,675
STEEL 1.2%*
84,000 Nucor Corporation 4,662,000
TELECOMMUNICATIONS 2.5%*
156,000 Motorola, Inc. 9,028,500
12,000 ProNet, Inc. + 174,000
36,000 U.S. Long Distance Corporation + 432,000
------------
9,634,500
TIRES & RUBBER 0.2%*
15,000 Bandag, Inc. 907,500
TRANSPORTATION 1.0%*
20,000 Knight Transportation, Inc. + 285,000
24,000 Landstar Systems, Inc. + 786,000
43,000 MS Carriers, Inc. + 935,250
40,000 MTL, Inc. + 450,000
49,000 TNT Freightways Corporation 1,255,625
------------
3,711,875
WASTE CONTROL 0.1%*
20,000 Continental Waste Industries, Inc. + 197,500
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -----------------------------------------------------------------
<S> <C>
OTHER 1.2%*
237,000 Consolidated Graphics, Inc. + $ 2,666,250
10,000 Corrpro Companies, Inc. + 151,250
85,000 Equity Corporation International + 1,126,250
42,000 John Q. Hammons Hotels, Inc. + 588,000
------------
4,531,750
------------
Total United States 288,698,043
FOREIGN 13.4%*
BRAZIL 3.5%*
PETROLEUM 0.1%*
1,500,000 Petroleo Brasileiro S.A. 189,699
STEEL 0.1%*
15,000 Usinas Siderurgicas de Minas Gerais S.A.
ADR (USD) (Acquired 9/20/94-12/29/9 4;
Cost $202,652) (r) + 204,375
TELECOMMUNICATIONS 2.1%*
180,000 Telecommunicacoes Brasileiras S.A.
ADR (USD) 8,055,000
OTHER 1.2%*
122,000 Companhia Energetica de Minas Gerais
ADR (USD)+ 2,958,500
34,000 Companhia Vale do Rio Doce ADR (USD) 1,636,250
------------
4,594,750
------------
13,043,824
CANADA 1.1%*
CONSUMER RELATED PRODUCTS 0.8%*
120,000 The Loewen Group, Inc. (USD) 3,180,000
METALS & MINING 0.3%*
64,000 Placer Dome, Inc. (USD) 1,392,000
------------
4,572,000
HONG KONG 6.7%*
AIRCRAFT & AEROSPACE 0.3%*
320,600 Hong Kong Aircraft Engineering
Company, Ltd. 1,069,081
BANKING 1.7%*
63,000 HSBC Holdings PLC ADR (USD) 6,799,111
CONGLOMERATES 1.8%*
1,454,000 Citic Pacific, Ltd. 3,504,860
300,000 Guangdong Investment, Ltd. 148,314
106,500 Swire Pacific, Ltd. 'A' 663,474
429,000 Swire Pacific, Ltd. ADR (USD) 2,672,541
------------
6,989,189
ELECTRIC & GAS UTILITIES 0.9%*
1,552,000 Consolidated Electric Power
Asia, Ltd. 3,410,108
FINANCIAL SERVICES 0.1%*
74,000 Guoco Group, Ltd. 316,583
REAL ESTATE 0.6%*
266,000 Cheung Kong (Holdings), Ltd. 1,082,978
284,000 New World Development Company, Ltd. 757,994
102,400 Sun Hung Kai Properties, Ltd. 611,462
------------
2,452,434
</TABLE>
See notes to financial statements.
25
<PAGE> 28
SCHEDULE OF INVESTMENTS IN SECURITIES (continued) December 31, 1994
STRONG DISCOVERY FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OTHER 1.3%*
98,000 Hutchison Whampoa, Ltd. ADR (USD) $ 1,982,275
449,000 Jardine Matheson Holdings, Ltd. ADR (USD) 3,206,264
-------------
5,188,539
-------------
26,225,045
THAILAND 0.1%*
BANKING
39,000 Bangkok Bank Public Company, Ltd. (Fgn Reg) 416,497
UNITED KINGDOM 2.0%*
BUSINESS SERVICES
370,000 Danka Business Systems PLC ADR (USD) 8,001,250
-------------
Total Foreign 52,258,616
-------------
Total Common Stocks (Cost $350,036,600) 340,956,659
PREFERRED STOCK 0.1%*
FOREIGN
FINLAND
3,000 Nokia Corporation Preferred ADR (USD) +
(Cost $221,415) 225,000
CONVERTIBLE PREFERRED STOCK 1.4%*
895,000 RJR Nabisco Holdings Corporation Series C
Depositary Shares Representing 1/10
Series C Conversion Preferred Stock
(Cost $5,817,500) 5,370,000
</TABLE>
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
- - - -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CASH EQUIVALENTS 5.0%*
COMMERICAL PAPER 4.4%*
DISCOUNTED 4.3%*
$4,900,000 Kmart Corporation
Due 1/06/95 $ 4,897,448
5,000,000 Pennsylvania Power & Light Energy Trust
Due 1/04/95 4,999,159
6,900,000 Tyson Foods, Inc.
Due 1/05/95 6,897,635
-------------
16,794,242
INTEREST BEARING, DUE UPON DEMAND 0.1%*
94,600 BarclaysAmericanCorp., 5.80% 94,600
62,800 General Mills, Inc., 5.73% 62,800
14,600 Southwestern Bell Telephone Company, 5.71% 14,600
28,400 Wisconsin Electric Power Company, 5.77% 28,400
-------------
200,400
-------------
Total Commercial Paper 16,994,642
UNITED STATES GOVERNMENT ISSUES 0.6%*
2,515,000 United States Treasury Bills
Due 2/02/95 2,505,338
-------------
Total Cash Equivalents (Cost $19,498,576) 19,499,980
TOTAL INVESTMENTS IN SECURITIES -------------
(COST $375,574,091) 94.2%* 366,051,639
Other Assets and Liabilities, Net 5.8%* 22,358,708
-------------
NET ASSETS 100.0%* $ 388,410,347
=============
</TABLE>
See notes to financial statements.
26
<PAGE> 29
STRONG INTERNATIONAL STOCK FUND
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT INDUSTRY (NOTE 2)
- - - --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON AND PREFERRED STOCKS 89.9%*
ARGENTINA 2.4%*
107,000 The Argentina Fund, Inc. (USD) Country Fund $ 1,297,375
93,000 Banco Frances del Rio de la Plata S.A. ADR (USD)+ Financial Services 1,987,875
140,700 YPF Sociedad Anonima ADR (USD) Oil Field Services & Equipment 3,007,463
-----------
6,292,713
AUSTRALIA 11.6%*
3,360,519 AAPC, Ltd. Communications, Lodging & Entertainment 1,979,985
9,613,000 Anzoil NL + Oil Field Services & Equipment 652,092
209,691 The Broken Hill Proprietary Company, Ltd. Metals & Mining 3,186,235
1,527,646 Burns, Philp & Company, Ltd. Food, Beverage & Tobacco 3,612,139
506,822 Coca-Cola Amatil, Ltd. Food, Beverage & Tobacco 3,221,894
600,000 ERG Australia, Ltd. + Electrical & Electronics 1,000,073
280,821 Lend Lease Corporation, Ltd. Financial Services 3,474,597
1,580,000 MIM Holdings, Ltd. Metals & Mining 2,633,525
647,256 The News Corporation, Ltd. Communications, Lodging & Entertainment 2,534,016
323,628 The News Corporation, Ltd. Voting-Preferred + Communications, Lodging & Entertainment 1,113,964
840,100 Normandy Poseidon, Ltd. Metals & Mining 1,224,421
37,000 Poseidon Gold, Ltd. Metals & Mining 77,448
1,425,000 Woodside Petroleum, Ltd. Oil Field Services & Equipment 5,236,428
-----------
29,946,817
AUSTRIA 0.5%*
32,000 Flughafen Wien AG Transportation 1,355,857
BRAZIL 0.1%*
8,000 Telecommunicacoes Brasileiras S.A. ADR (USD) Telecommunications 358,000
CANADA 0.7%*
123,000 The Molson Companies, Ltd. Class A Food, Beverage & Tobacco 1,742,738
CHILE 0.2%*
35,000 Papeles Nacionales S.A. GDR (USD)
(Acquired 10/04/94; Cost $630,000) (r)+ Industrial 420,000
FRANCE 5.3%*
28,700 Alcatel Cable Telecommunications 2,360,053
12,900 Bazar de L'Hotel de Ville Retail 1,376,709
6,000 Canal Plus Communications, Lodging & Entertainment 960,494
17,425 Chargeurs Conglomerates 3,804,072
124,500 Lagardere Group Conglomerates 2,890,470
5,545 Salomon S.A. Consumer Related Products 2,216,547
-----------
13,608,345
GERMANY 0.9%*
5,050 Axel Springer Verlag AG Communications, Lodging & Entertainment 2,030,232
900 Porsche AG Non-Voting Preferred + Automotive Related 391,734
-----------
2,421,966
GHANA 1.1%*
30,000 Ashanti Goldfields Company, Ltd. GDR (USD)+ Metals & Mining 648,750
102,000 Ashanti Goldfields Company, Ltd. (USD)
(Acquired 4/19/94-11/15/94; Cost $2,063,100) (r) + Metals & Mining 2,205,750
-----------
2,854,500
HONG KONG 3.6%*
5,413,620 CDL Hotels International, Ltd. Communications, Lodging & Entertainment 2,133,963
703,000 Hongkong Land Holdings, Ltd. Real Estate 1,371,929
292,000 Jardine Matheson Holdings, Ltd. Conglomerates 2,085,041
373,000 Jardine Strategic Holdings, Ltd. Conglomerates 1,224,452
1,176,000 Jardine Strategic Holdings, Ltd.
7.50% Convertible Cumulative Preferred IDR (USD) Conglomerates 1,358,280
3,976,000 Zhenhai Refining & Chemical Company, Ltd.
(Acquired 11/11/94; Cost $1,224,589) (r) + Chemicals 1,012,306
-----------
9,185,971
</TABLE>
See notes to financial statements.
27
<PAGE> 30
SCHEDULE OF INVESTMENTS IN SECURITIES (Continued) December 31, 1994
STRONG INTERNATIONAL STOCK FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT INDUSTRY (NOTE 2)
- - - ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INDIA 1.6%*
19,400 The Great Eastern Shipping Company, Ltd. GDR (USD)+ Transportation $ 213,400
125,000 The India Gateway Fund, Ltd. (USD) + Country Fund 1,233,750
25,000 The India Gateway Fund, Ltd. Warrants,
Expire 5/31/97 (USD) + Country Fund 0
40,000 Larsen & Toubro, Ltd. GDR (USD) (Acquired 12/14/94;
Cost $605,000) (r) + Construction 610,000
13,000 Peregrine Indian Smaller Companies Fund (USD) Country Fund 1,283,360
40,000 Tata Engineering and Locomotive Company (USD)
(Acquired 7/15/94; Cost $560,000) (r) + Automotive Related 820,000
-------------
4,160,510
INDONESIA 1.1%*
2,217,300 Indah Kiat Pulp & Paper PT (Fgn Reg) Forest & Paper Products 2,622,830
7,600 Perusahaan Perseroan (Persero)
PT Indonesian Satellite Corporation ADR (USD) + Telecommunications 271,700
15,000 Sumalindo Lestari Jaya PT (Fgn Reg) + Forest & Paper Products 32,074
-------------
2,926,604
ISRAEL 0.6%*
215,300 Ampal-American Israel Corporation Class A (USD) + Conglomerates 1,426,363
ITALY 0.6%*
800,000 Magneti Marelli Spa + Automotive Related 633,899
393,000 Telecom Italia Spa+ Telecommunications 1,022,662
-------------
1,656,561
JAPAN 16.1%*
650 Best Denki Warrants, Expire 5/14/97 (USD) + Retail 576,875
1,870 Canon, Inc. Warrants, Expire 5/24/95 (USD) + Electrical & Electronics 224,624
2,050 Citizen Watch Company, Ltd. Warrants,
Expire 10/22/96 (USD) + Electrical & Electronics 871,250
1,060 East Japan Railway Company Railroads 5,297,341
187,000 Hitachi, Ltd. Electrical & Electronics 1,855,926
273,000 Mitsubishi Corporation Conglomerates 3,588,861
200,000 Mitsui Trust & Banking Company, Ltd. Financial Services 2,087,306
110,000 Mitsumi Electric Company, Ltd. Electrical & Electronics 1,545,409
39,000 Nintendo Company, Ltd. Communications, Lodging & Entertainment 2,109,483
385 Nippon Telegraph & Telephone Corporation Telecommunications 3,403,763
260,000 Nissan Motor Company, Ltd. Automotive Related 2,147,316
70,000 Nomura Securities Company, Ltd. Financial Services 1,454,089
109,000 Olympus Optical Company, Ltd. Electrical & Electronics 1,192,273
1,320 Olympus Optical Company, Ltd. Warrants,
Expire 12/03/96 (USD) + Electrical & Electronics 874,500
440,000 Renown, Inc. + Consumer Related Products 1,973,708
106,000 Sankyo Company, Ltd. Pharmaceuticals 2,638,033
16,000 Shimano, Inc. Consumer Related Products 313,096
198,000 Sumitomo Corporation Conglomerates 2,026,693
254,000 TOC Company, Ltd. Real Estate 5,097,842
12,000 Toho Company Communications, Lodging & Entertainment 2,107,376
------------
41,385,764
LUXEMBOURG 0.1%*
80,000 First NIS Regional Fund (USD) + Country Fund 340,000
MALAYSIA 1.6%*
530,000 Kuala Lumpur Kepong BHD Forest & Paper Products 1,411,396
612,000 Sime Darby BHD Conglomerates 1,402,076
200,000 Westmont BHD Oil Field Services & Equipment 1,245,349
------------
4,058,821
MEXICO 2.0%*
1,793,000 Grupo Posadas S.A. de C.V. + Communications, Lodging & Entertainment 1,398,360
673,500 Industrias Penoles S.A. de C.V. + Metals & Mining 1,851,956
44,000 Telefonos de Mexico S.A. ADR Series L (USD) Telecommunications 1,804,000
------------
5,054,316
NETHERLANDS 1.5%*
53,000 Indigo NV (USD) + Manufacturing 881,125
66,000 Polygram Communications, Lodging & Entertainment 3,068,644
------------
3,949,769
</TABLE>
See notes to financial statements.
28
<PAGE> 31
STRONG INTERNATIONAL STOCK FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT INDUSTRY (NOTE 2)
- - - -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NEW ZEALAND 4.1%*
2,334,113 Brierley Investments, Ltd. Conglomerates $ 1,688,426
2,316,321 Carter Holt Harvey, Ltd. Forest & Paper Products 4,744,937
536,320 Fernz Corporation, Ltd. Pharmaceuticals 1,665,127
965,000 Fletcher Challenge, Ltd. Forestry Division Forest & Paper Products 1,155,183
4 15,618 Skellerup Group, Ltd. Conglomerates 622,575
1,100,000 Wrightson, Ltd. Agriculture 809,790
------------
10,686,038
NORWAY 4.3%*
42,250 Braathens S.A.F.E. + Transportation 1,624,060
213,000 Mosvold Shipping AS Class B Transportation 1,417,080
50,000 Norsk Hydro AS ADR (USD) + Petroleum 1,956,250
700,000 SensoNor AS + Automotive Related 4,346,597
100,000 Unitor AS Transportation 1,685,415
------------
11,029,402
PERU 1.4%*
742,201 Banco de Credito del Peru Banking 1,642,158
194,195 Minsur S.A. + Metals & Mining 2,000,662
------------
3,642,820
PHILIPPINES 0.8%*
146,000 Philippine National Bank Banking 2,049,227
RUSSIA 0.5%*
165,000 The Fleming Russia Securities Fund, Ltd. (USD)+ Country Fund 1,196,250
SINGAPORE 1.6%*
150,000 The Development Bank of Singapore, Ltd. (Fgn Reg) Banking 1,543,739
911,000 Malayan Credit, Ltd. Real Estate 2,025,139
596,000 Singapore Computer Systems, Ltd. (Fgn Reg) + Computers & Software 482,525
------------
4,051,403
SOUTH AFRICA 2.8%*
76,400 Anglo American Corporation of South Africa Metals & Mining 4,427,898
60,000 De Beers Consolidated Mines, Ltd. ADR (USD) Metals & Mining 1,402,500
60,000 Pepkor Limited ADR (USD) (Acquired 6/30/94;
Cost $577,200) (r) + Pharmaceuticals 663,750
225,000 Safmarine and Rennies Holdings, Ltd. Communications, Lodging & Entertainment 718,320
------------
7,212,468
SOUTH KOREA 1.2%*
40,000 Daeyu Securities Company, Ltd. Preferred + Financial Services 578,313
38,210 Korea Electric Power Corporation + Electric & Gas Utilities 1,318,087
44,000 Ssangyong Investment & Securities Company, Ltd.+ Financial Services 1,155,105
------------
3,051,505
SPAIN 1.3%*
20,600 Fomento de Construcciones y Contratas S.A. Construction 2,015,515
206,000 Iberdrola S.A. Electric & Gas Utilities 1,270,651
------------
3,286,166
SWEDEN 4.1%*
263,550 Arjo AB + Medical Supplies 4,823,693
20,000 Autoliv Aktiebolag + Automotive Related 769,793
124,000 Investor AB Class B Conglomerates 3,087,245
76,400 Terra Mining AB Metals & Mining 2,004,960
------------
10,685,691
SWITZERLAND 2.0%*
2,300 Financiere Richemont AG CIE Units Consumer Related Products 2,389,610
55 Reisebuero Kuoni AG Communications, Lodging & Entertainment 1,533,614
2,400 SMH (Suisse Microelectronique et d'Horlogerie) Consumer Related Products 1,193,583
------------
5,116,807
</TABLE>
See notes to financial statements.
29
<PAGE> 32
SCHEDULE OF INVESTMENTS IN SECURITIES (continued) December 31, 1994
STRONG INTERNATIONAL STOCK FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT INDUSTRY (NOTE 2)
- - - ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TAIWAN 0.9%*
120,000 The Baring Taiwan Fund, Ltd. (USD) + Country Fund $ 1,290,000
39,000 The Taiwan Fund, Inc. (USD) Country Fund 1,126,125
------------
2,416,125
THAILAND 2.5%*
80,500 Loxley PCL (Fgn Reg) + Conglomerates 1,507,070
51,000 Property Perfect Public Company, Ltd. (Fgn Reg) + Real Estate 583,031
11,111 Property Perfect Public Company, Ltd. Warrants,
Expire 7/07/99 (Fgn Reg) + Real Estate 32,308
2,300,000 The Ruam Pattana Two Fund (Fgn Reg) + Country Fund 1,328,421
200,000 Samitivej Public Company, Ltd. (Fgn Reg) Medical Services 225,055
147,000 Sino-Thai Engineering and Construction Public Company,
Ltd. (Fgn Reg) Construction 1,932,284
438,000 Thai Airways International PCL Transportation 950,847
------------
6,559,016
UNITED KINGDOM 10.8%*
601,337 Allied Irish Banks PLC Financial Services 2,540,543
108 BTR Warrants, Expire 10/31/98 + Industrial 55
326,000 Cable & Wireless PLC Telecommunications 1,923,108
55,000 Carlton Communications PLC Communications, Lodging & Entertainment 771,969
1,100,000 City Centre Restaurants PLC Communications, Lodging & Entertainment 1,376,979
326,000 Eurotunnel PLC/Eurotunnel S.A. Units + Transportation 1,464,011
555,000 Hanson Trust PLC Conglomerates 2,006,087
770,000 Intrum Justitia PLC Financial Services 855,448
504,534 Ladbroke Group PLC Communications, Lodging & Entertainment 1,342,098
1,212,710 Lonrho PLC Conglomerates 2,884,333
542,000 MFI Furniture Group PLC Retail 1,094,041
158,000 Pearson PLC Publishing 1,377,073
194,000 The RTZ Corporation PLC Metals & Mining 2,513,488
197,000 W.H. Smith Group PLC Retail 1,479,627
516,000 Taunton Cider PLC Food, Beverage & Tobacco 1,211,116
95,000 The Telegraph PLC Publishing 558,928
770,000 Tomkins PLC Conglomerates 2,632,613
600,000 Trafalgar House Construction 722,914
718,600 Union Discount PLC Financial Services 1,011,986
------------
27,766,417
------------
Total Common and Preferred Stocks (Cost $245,162,870) 231,894,950
<CAPTION>
<S> <C>
CONVERTIBLE CORPORATE BONDS 0.4%*
PERU 0.3%*
$ 650,000 International Financial Holdings, Inc. Exchangeable
Notes, 6.50%, Due 8/01/99 (USD) (Acquired 9/20/94, 9/23/94; Cost $708,000) (r) 747,500
THAILAND 0.1%*
350,000 Siam Syntech Construction Public Company
Convertible Bonds, 4.50%, Due 2/25/02 (USD)(Acquired 2/09/94; Cost $350,000) (r) 229,250
------------
Total Convertible Corporate Bonds (Cost $1,058,000) 976,750
CASH EQUIVALENTS 10.7%*
CERTIFICATE OF DEPOSIT 0.4%*
1,002,422 Citibank Indonesian Rupiah-Linked, 11.90%, Due 3/13/95 992,844
INTEREST BEARING, DUE UPON DEMAND 0.1%*
302,000 U.S. Cayman Eurodollar Call Deposit, 3.75% 302,000
TIME DEPOSITS 10.2%*
2,400,000 Dresdner Bank AG, 5.50%, Due 1/03/95 2,400,000
11,900,000 First National Bank of Chicago, 5.875%, Due 1/03/95 11,900,000
11,900,000 Morgan Guaranty Trust Company, 5.8125%, Due 1/03/95 11,900,000
------------
26,200,000
------------
Total Cash Equivalents (Cost $27,504,422) 27,494,844
------------
TOTAL INVESTMENTS IN SECURITIES (COST $273,725,292) 101.0%* 260,366,544
(2,536,500)
Other Assets and Liabilities, Net (1.0%*) -------------
NET ASSETS 100.0%* $ 257,830,044
=============
</TABLE>
See notes to financial statements.
30
<PAGE> 33
SCHEDULE OF INVESTMENTS IN SECURITIES December 31, 1994
STRONG ASIA PACIFIC FUND
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT INDUSTRY (NOTE 2)
- - - -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON AND PREFERRED STOCKS 89.0%*
AUSTRALIA 18.9%*
825,560 AAPC, Ltd. Communications, Lodging & Entertainment $486,412
360,000 Acacia Resources, Ltd. + Metals & Mining 655,862
5,188,000 Anzoil NL+ Oil Field Services & Equipment 351,925
176,000 Austereo, Ltd. + Broadcasting 171,919
100,000 BTR Nylex, Ltd. Manufacturing 186,060
50,650 The Broken Hill Proprietary Company, Ltd. Metals & Mining 769,622
322,715 Burns, Philp & Company, Ltd. Food, Beverage & Tobacco 763,064
99,651 Coca-Cola Amatil, Ltd. Food, Beverage & Tobacco 633,487
200,000 ERG Australia, Ltd. + Electrical & Electronics 333,358
406,000 Foster's Brewing Group, Ltd. Food, Beverage & Tobacco 355,669
135,000 Jupiters, Ltd. Communications, Lodging & Entertainment 324,442
120,771 Leighton Holdings, Ltd. Construction 185,383
56,751 Lend Lease Corporation, Ltd. Financial Services 702,180
405,000 MIM Holdings, Ltd. Metals & Mining 675,049
780,000 Macmahon Holdings, Ltd. + Metals & Mining 356,770
150,511 The News Corporation, Ltd. Communications, Lodging & Entertainment 589,253
75,256 The News Corporation, Ltd. Voting-Preferred Shares+ Communications, Lodging & Entertainment 259,040
165,000 Normandy Poseidon, Ltd. Metals & Mining 240,483
358,723 Poseidon Gold, Ltd. Metals & Mining 750,870
16,000 TABCORP Holdings, Ltd. ADR (USD)
(Acquired 8/15/94; Cost $267,680) (r)+ Communications, Lodging & Entertainment 292,000
1,300,000 Walker Corporation Construction 725,634
306,000 Woodside Petroleum, Ltd. Oil Field Services & Equipment 1,124,454
----------
10,932,936
HONG KONG 5.1%*
1,306,887 CDL Hotels International, Ltd. Communications, Lodging & Entertainment 515,154
186,000 Hongkong Land Holdings, Ltd. Real Estate 362,985
86,000 Jardine Matheson Holdings, Ltd. Conglomerates 614,087
102,000 Jardine Strategic Holdings, Ltd. Conglomerates 334,837
294,000 Jardine Strategic Holdings, Ltd.
7.50% Convertible Cumulative Preferred IDR (USD) Conglomerates 339,570
2,126,000 Luks Industrial Company, Ltd. Electrical & Electronics 302,242
670,000 Wai Kee Holdings, Ltd. Construction 155,864
1,344,000 Zhenhai Refining & Chemical Company
(Acquired 11/11/94; Cost $413,945) (r)+ Chemicals 342,188
----------
2,966,927
INDIA 6.0%*
61,500 The Arvind Mills, Ltd. GDR (USD)
(Acquired 3/17/94; Cost $461,250) (r) Other 284,438
38,000 Bajaj Auto, Ltd. GDR (USD) (Acquired 10/28/94;
Cost $962,540) (r) Automotive Related 921,500
18,500 The Great Eastern Shipping Company, Ltd. GDR (USD) + Transportation 203,500
25,000 The India Gateway Fund, Ltd. (USD) + Country Fund 246,750
5,000 The India Gateway Fund, Ltd. Warrants,
Expire 5/31/97 (USD) + Country Fund 0
20,000 Larsen and Toubro, Ltd. GDR (USD)
(Acquired 11/18/94; Cost $334,000) (r)+ Construction 305,000
3,000 Peregrine Indian Smaller Companies Fund (USD) Country Fund 296,160
450 Tata Electric Companies GDS (USD)
(Acquired 2/22/94; Cost $319,500) (r)+ Electric & Gas Utilities 190,125
7,000 Tata Engineering and Locomotive Company, Ltd. (USD)
(Acquired 7/15/94; Cost $98,000) (r)+ Automotive Related 143,500
130,000 Tube Investments of India, Ltd. GDR (USD)
(Acquired 5/17/94; Cost $1,140,100) (r)+ Automotive Related 877,500
----------
3,468,473
INDONESIA 4.8%*
605,500 Indah Kiat Pulp & Paper PT (Fgn Reg) Forest & Paper Products 716,242
215,000 Jakarta International Hotel & Development (Fgn Reg) Communications, Lodging & Entertainment 278,776
39,000 Perusahaan Perseroan (Persero)
PT Indonesian Satellite Corporation ADR (USD)+ Telecommunications 1,394,250
380,000 Putra Surya Perkasa PT (Fgn Reg)+ Real Estate 358,735
----------
2,748,003
ISRAEL 0.5%*
44,500 Ampal-American Israel Corporation Class A (USD) + Conglomerates 294,813
</TABLE>
See notes to financial statements.
31
<PAGE> 34
SCHEDULE OF INVESTMENTS IN SECURITIES (continued) December 31, 1994
STRONG ASIA PACIFIC FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT INDUSTRY (NOTE 2)
- - - -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
JAPAN 18.8%*
800 Aderans Company Warrants, Expire 8/19/97 (CHF)+ Consumer Related Products $ 150,955
12,000 Bunkyodo Japan Company Retail 493,728
600 Citizen Watch Company, Ltd. Warrants,
Expire 10/22/96 (USD) + Electrical & Electronics 255,000
225 East Japan Railway Company Railroads 1,124,436
86,000 Hokuetsu Metal Metals & Mining 461,716
14,000 KVK Corporation Manufacturing 309,082
55,000 Mitsubishi Corporation Conglomerates 723,031
41,000 Mitsui Trust & Banking Company, Ltd. Financial Services 427,898
11,700 Nintendo Company, Ltd. Lodging & Entertainment 632,845
93 Nippon Telegraph & Telephone Corporation Telecommunications 822,208
72,000 Nissan Motor Company, Ltd. Automotive Related 594,641
26,000 Nomura Securities Company, Ltd. Financial Services 540,090
550 Olympus Optical Company, Ltd. Warrants,
Expire 12/03/96 (USD) + Electrical & Electronics 364,375
119,000 Renown, Inc.+ Consumer Related Products 533,798
25,000 Sankyo Company, Ltd. Pharmaceuticals 622,178
43,000 Sumitomo Corporation Conglomerates 440,140
59,000 TOC Company, Ltd. Real Estate 1,184,145
2,700 Toho Company Communications, Lodging & Entertainment 474,160
36,000 Toko Seiki Company Electrical & Electronics 375,715
35,000 Tokyo Tungsten Company Metals & Mining 302,057
----------
10,832,198
MALAYSIA 2.7%*
91,000 Hock Hua Bank BHD Banking 274,408
133,000 Kuala Lumpur Kepong BHD Forest & Paper Products 354,181
129,600 Sime Darby BHD Conglomerates 296,910
100,000 Westmont BHD Oil Field Services & Equipment 622,675
---------
1,548,174
NEW ZEALAND 7.7%*
845,416 Brierley Investments, Ltd. Conglomerates 611,548
1,650,000 CDL Hotels New Zealand, Ltd. + Communications, Lodging & Entertainment 697,123
498,000 Carter Holt Harvey, Ltd. Forest & Paper Products 1,020,143
50,000 Ceramco Corporation, Ltd. Consumer Related Products 108,825
133,470 Fernz Corporation, Ltd. Pharmaceuticals 414,388
212,000 Fletcher Challenge, Ltd. Forestry Division Forest & Paper Products 253,781
176,600 Helicopter Line, Ltd. Transportation 508,727
366,000 Port of Tauranga, Ltd. Transportation 262,410
370,000 Progressive Enterprises, Ltd. Retail 296,069
550,000 SEABIL (NZ), Ltd. + Real Estate 297,510
---------
4,470,524
PAKISTAN 0.2%*
1,000 Pakistan Telecommunication Company, Ltd. GDR (USD)
(Acquired 9/16/94; Cost $179,770) (r)+ Telecommunications 135,500
PHILIPPINES 3.7%*
62,800 Benpres Holdings Corporation GDR (USD)
(Acquired 10/25/94; Cost $678,240) (r)+ Conglomerates 580,900
39,000 Philippine National Bank Banking 547,396
63,270 SM Prime Holdings, Inc. GDR (USD)
(Acquired 6/15/94; Cost $635,193) (r)+ Real Estate 1,012,320
---------
2,140,616
RUSSIA 0.5%*
36,000 The Fleming Russia Securities Fund, Ltd. (USD) + Country Fund 261,000
SINGAPORE 7.0%*
184,000 Acma, Ltd. Conglomerates 603,444
16,000 Bukit Sembawang Estates, Inc. Real Estate 310,669
467,000 Comfort Group, Ltd.+ Transportation 323,616
47,000 The Development Bank of Singapore, Ltd. (Fgn Reg) Banking 483,705
63,700 Fraser & Neave, Ltd. Food, Beverage & Tobacco 659,945
574,000 GB Holdings, Ltd. Consumer Related Products 377,087
197,000 Lim Kah Ngam, Ltd. Construction 266,271
129,000 Malayan Credit, Ltd. Real Estate 286,765
310,000 Pacific Carriers, Ltd. Transportation 299,897
26,000 Singapore Sesdaq Fund (USD) + Country Fund 409,500
---------
4,020,899
</TABLE>
See notes to financial statements.
32
<PAGE> 35
STRONG ASIA PACIFIC FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT INDUSTRY (NOTE 2)
- - - --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
SOUTH AFRICA 0.7%*
7,100 Anglo American Corporation of South Africa Metals & Mining $ 411,493
SOUTH KOREA 1.8%*
15,000 Hana Bank+ Banking 317,692
13,800 Korea Electric Power Corporation+ Electric & Gas Utilities 476,043
9,600 Ssangyong Investment & Securities Company, Ltd.+ Financial Services 252,023
---------
1,045,758
SWEDEN 0.4%*
8,200 Terra Mining AB Metals & Mining 215,192
TAIWAN 1.7%*
45,000 The R.O.C. Taiwan Fund (USD)+ Country Fund 534,375
24,000 Yageo Corporation GDR (USD)
(Acquired 9/14/94; Cost $549,600) (r)+ Electrical & Electronics 420,000
-------
954,375
THAILAND 6.2%*
297,000 Electricity Generating Public Company, Ltd. (Fgn Reg)
(Acquired 10/27/94; Cost $265,135) (r)+ Electric & Gas Utilities 520,534
2,000 Land & Houses PCL (Fgn Reg) Real Estate 35,690
Loxley PCL:
17,000 (Fgn Reg)+ Conglomerates 318,263
4,000 (Loc Reg) Conglomerates 74,885
40,000 Matichon Newspapers PCL+ Publishing 258,116
14,000 Property Perfect Public Company, Ltd. (Fgn Reg)+ Real Estate 160,048
2,666 Property Perfect Public Company, Ltd. Warrants,
Expire 7/7/99 (Fgn Reg)+ Real Estate 7,752
485,000 The Ruam Pattana Two Fund (Fgn Reg)+ Country Fund 280,123
871,000 Ruang Khao Fund (Fgn Reg)+ Country Fund 563,782
472,700 Saha Union Public Company, Ltd. (Fgn Reg) Conglomerates 560,160
17,900 Sino-Thai Engineering & Construction
Public Company, Ltd. (Fgn Reg) Construction 235,292
125,000 Sri Trang Agro-Industry PCL (Fgn Reg) Agriculture 219,080
148,000 Thai Airways International PCL Transportation 321,291
---------
3,555,016
UNITED KINGDOM 1.0%*
94,000 Cable & Wireless PLC Telecommunications 554,516
UNITED STATES 0.9%*
25,500 Freeport-McMoRan Copper & Gold Class A Metals & Mining 541,875
VIETNAM 0.4%*
5,000 Beta Mekong Fund, Ltd. (USD)+ Country Fund 257,500
----------
Total Common and Preferred Stocks (Cost $56,467,958) 51,355,788
CONVERTIBLE CORPORATE BONDS 1.0%*
PHILIPPINES 0.5%*
$300,000 House of Investments Convertible Bonds, 4.00%,
Due 10/17/01 (USD) 292,500
THAILAND 0.5%*
400,000 Siam Syntech Construction Public Company, Ltd. Convertible Bonds, 4.50%, Due 2/25/02 (USD)
(Acquired 2/09/94; Cost $400,000) (r) 262,000
---------
Total Convertible Corporate Bonds (Cost $700,000) 554,500
CASH EQUIVALENTS 9.6%*
CERTIFICATES OF DEPOSIT 2.8%*
501,211 Citibank Indonesian Rupiah-Linked, 11.9%, Due 3/13/95 496,422
1,095,148 Morgan Guaranty Trust New York Singapore Philippine Peso-Linked Registered, Zero %, Due 1/06/95 1,120,074
---------
1,616,496
INTEREST BEARING, DUE UPON DEMAND 0.6%*
353,000 U.S. Cayman Eurodollar Call Deposit, 3.75% 353,000
</TABLE>
See notes to financial statements.
33
<PAGE> 36
SCHEDULE OF INVESTMENTS IN SECURITIES (continued) December 31, 1994
STRONG ASIA PACIFIC FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT INDUSTRY (NOTE 2)
- - - ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TIME DEPOSITS 6.2%*
$ 800,000 First National Bank of Chicago, 5.875%, Due 1/03/95 $ 800,000
2,800,000 Morgan Guaranty Trust Company, 5.8125%, Due 1/03/95 2,800,000
-----------
3,600,000
-----------
Total Cash Equivalents (Cost $5,546,086) 5,569,496
-----------
TOTAL INVESTMENT IN SECURITIES (COST $62,714,044) 99.6%* 57,479,784
Other Assets and Liabilities, Net 0.4%* 243,919
-----------
NET ASSETS 100.0%* $57,723,703
===========
</TABLE>
* Percentages are calculated as a percentage of net assets.
** The Funds may engage in repurchase agreements where the underlying
collateral consists of U.S. government securities which are
maintained in a segregated account with a custodian. The market value
of the collateral must exceed the principal amount of the
repurchase agreement by at least two percent on a daily basis.
(USD) U.S. dollar-denominated.
(CHF) Swiss franc-denominated.
(r) Restricted security.
+ Non-income producing.
See notes to financial statements.
34
<PAGE> 37
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the Year Ended December 31, 1994 (In Thousands)
STRONG STRONG STONG
OPPORTUNITY FUND GROWTH FUND COMMON STOCK FUND
---------------- ----------- -----------------
<S> <C> <C> <C>
INCOME:
Dividends $ 8,440 $ 353 $ 9,572
Interest 3,631 398 3,136
------- ------ ---------
Total Income 12,071 751 12,708
EXPENSES:
Investment Advisory Fees 6,379 490 8,033
Custodian Fees 195 23 261
Shareholder Servicing Costs 1,513 143 1,450
Reports to Shareholders 452 57 577
Federal and State Registration Fees 112 39 221
Other 74 27 129
------- ------ ---------
Total Expenses 8,725 779 10,671
------- ------ ---------
NET INVESTMENT INCOME (LOSS) 3,346 (28) 2,037
REALIZED AND UNREALIZED GAIN (LOSS):
Net Realized Gain (Loss) on:
Investments 30,599 (1,421) 48,104
Futures Contracts and Options (1,132) (66) (318)
Foreign Currencies 14 -- (8)
Change in Unrealized Appreciation/Depreciation
on Investments (19,889) 6,495 (54,576)
------- ------ ---------
NET GAIN (LOSS) 9,592 5,008 (6,798)
------- ------ ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $12,938 $4,980 ($ 4,761)
======= ====== =========
<CAPTION>
STRONG
STRONG INTERNATIONAL STRONG ASIA
DISCOVERY FUND STOCK FUND PACIFIC FUND
------------- ---------- --------------------
<S> <C> <C> <C>
INCOME:
Dividends (net of withholding taxes of $0,
$423 and $79, respectively) $ 6,024 $ 3,628 $ 852
Interest 1,830 1,525 472
------ ------ ------
Total Income 7,854 5,153 1,324
EXPENSES:
Investment Advisory Fees 3,669 2,532 517
Custodian Fees 191 619 250
Shareholder Servicing Costs 1,022 749 217
Reports to Shareholders 303 210 90
Federal and State Registration Fees 79 91 30
Other 47 83 28
------ ------ ------
Total Expenses before Reimbursement 5,311 4,284 1,132
Reimbursement from Advisor -- -- (107)
------ ------ ------
Expenses, Net 5,311 4,284 1,025
------ ------ ------
NET INVESTMENT INCOME 2,543 869 299
REALIZED AND UNREALIZED GAIN (LOSS):
Net Realized Gain (Loss) on:
Investments 11,536 19,664 225
Futures Contracts and Hedges (2,250) (1,196) (186)
Foreign Currencies (10) (536) (112)
Change in Unrealized Appreciation/
Depreciation on:
Investments (34,031) (27,387) (5,234)
Hedges -- (481) (41)
Assets and Liabilities Denominated in
Foreign Currencies -- 28 (1)
------ ------ ------
NET LOSS (24,755) (9,908) (5,349)
------ ------ ------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS ($22,212) ($9,039) ($5,050)
======== ======= ========
</TABLE>
See notes to financial statements.
35
<PAGE> 38
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1994
(In Thousands, Except Per Share Amounts)
<TABLE>
<CAPTION>
STRONG STRONG STRONG
OPPORTUNITY FUND GROWTH FUND COMMON STOCK FUND
---------------- ----------- -----------------
<S> <C> <C> <C>
ASSETS:
Investments in Securities, at Value
(Cost of $756,510, $105,664 and $741,421,
respectively) $ 806,230 $ 112,163 $ 787,513
Receivable from Brokers for Securities Sold 1,909 1,383 13,893
Dividends and Interest Receivable 1,177 91 460
Other -- 57 60
---------- ----------- ----------
Total Assets 809,316 113,694 801,926
LIABILITIES:
Payable to Brokers for Securities Purchased 2,669 7,546 10,911
Accrued Operating Expenses and
Other Liabilities 947 139 890
---------- ----------- ----------
Total Liabilities 3,616 7,685 11,801
---------- ----------- ----------
NET ASSETS $ 805,700 $ 106,009 $ 790,125
=========== =========== =========
Capital Shares
Authorized 100,000 10,000,000 300,000
Outstanding 29,079 9,131 47,186
NET ASSET VALUE PER SHARE $ 0027.71 $ 11.61 $ 16.74
=========== =========== =========
<CAPTION>
STRONG STRONG STRONG
OPPORTUNITY FUND GROWTH FUND COMMON STOCK FUND
---------------- ----------- -----------------
<S> <C> <C> <C>
ASSETS:
Investments in Securities, at Value
(Cost of $375,574, $273,725 and $62,714,
respectively) $ 366,052 $ 260,367 $ 57,480
Receivable from Brokers for Securities Sold 21,674 57,165 10,103
Receivable for Fund Shares Sold -- 936 173
Dividends and Interest Receivable 2,768 314 111
Other 40 -- 674
---------- ----------- -----------
Total Assets 390,534 318,782 68,541
LIABILITIES:
Payable to Brokers for Securities and
Forward Foreign Currency
Exchange Contracts Purchased 1,691 58,955 9,973
Payable to Custodian -- 487 --
Payable for Fund Shares Redeemed -- 731 576
Accrued Operating Expenses and Other Liabilities 433 779 268
---------- ----------- -----------
Total Liabilities 2,124 60,952 10,817
---------- ----------- -----------
NET ASSETS $ 388,410 $ 257,830 $ 57,724
========== =========== ===========
Capital Shares 1,000,000 10,000,000 10,000,000
Authorized Outstanding 24,784 20,379 6,177
NET ASSET VALUE PER SHARE $ 15.67 $ 12.65 $ 9.35
========== =========== ===========
</TABLE>
See notes to financial statements.
36
<PAGE> 39
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31, 1994 and 1993
<TABLE>
<CAPTION>
(In Thousands)
STRONG STRONG
OPPORTUNITY FUND GROWTH FUND
--------------------------- -----------
1994 1993 1994*
---- ---- -----
<S> <C> <C> <C>
OPERATIONS:
Net Investment Income (Loss) $ 3,346 $ 647 ($ 28)
Net Realized Gain (Loss) 29,481 25,339 (1,487)
Change in Unrealized Appreciation/Depreciation (19,889) 34,992 6,495
-------- -------- --------
Increase in Net Assets Resulting from Operations 12,938 60,978 4,980
CAPITAL SHARE TRANSACTIONS 383,946 211,034 101,393
DISTRIBUTIONS:
From Net Investment Income (3,314) (647) --
In Excess of Net Investment Income (18) (32) (464)
From Net Realized Gains (31,355) (21,038) --
-------- -------- --------
TOTAL INCREASE IN NET ASSETS 362,197 250,295 105,909
NET ASSETS:
Beginning of Year 443,503 193,208 100
-------- -------- --------
End of Year $805,700 $443,503 $106,009
======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
STRONG STRONG
COMMON STOCK FUND DISCOVERY FUND
------------------------ -------------------------
1994 1993 1994 1993
---- ---- ---- ----
<S> <C> <C> <C> <C>
OPERATIONS:
Net Investment Income (Loss) $ 2,037 $ 1,327 $ 2,543 ($ 552)
Net Realized Gain 47,778 39,310 9,276 41,812
Change in Unrealized Appreciation/Depreciation (54,576) 83,156 (34,031) 8,293
-------- -------- ---------- ---------
Increase (Decrease) in Net Assets Resulting
from Operations (4,761) 123,793 (22,212) 49,553
CAPITAL SHARE TRANSACTIONS 82,644 495,056 139,429 80,475
DISTRIBUTIONS:
From Net Investment Income (1,963) (1,326) (2,544) --
In Excess of Net Investment Income (46) (74) (13,712) (6,784)
From Net Realized Gains (47,835) (34,476) (14,340) (14,731)
-------- -------- ---------- ---------
TOTAL INCREASE IN NET ASSETS 28,039 582,973 86,621 108,513
NET ASSETS:
Beginning of Year 762,086 179,113 301,789 193,276
-------- -------- ---------- ---------
End of Year $790,125 $762,086 $388,410 $301,789
======== ======== ========== =========
</TABLE>
*Inception date is December 31, 1993.
See notes to financial statements.
37
<PAGE> 40
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31, 1994 and 1993
<TABLE>
<CAPTION>
(In Thousands)
STRONG INTERNATIONAL STRONG
STOCK FUND ASIA PACIFIC FUND
-------------------- -----------------
1994 1993 1994*
---- ---- ----
<S> <C> <C> <C>
OPERATIONS:
Net Investment Income (Loss) $ 869 ($ 128) $ 299
Net Realized Gain (Loss) 17,932 7,042 (73)
Change in Unrealized Appreciation/Depreciation (27,840) 14,388 (5,276)
------- ------ ------
Increase (Decrease) in Net Assets Resulting from Operations (9,039) 21,302 (5,050)
CAPITAL SHARE TRANSACTIONS 162,477 96,500 63,428
DISTRIBUTIONS:
From Net Investment Income (73) -- (34)
In Excess of Net Investment Income -- (101) --
From Net Realized Gains (22,837) (1,979) --
In Excess of Net Realized Gains (1,143) -- (720)
------- ------ ------
TOTAL INCREASE IN NET ASSETS 129,385 115,722 57,624
NET ASSETS:
Beginning of Year 128,445 12,723 100
------- ------ ------
End of Year $257,830 $128,445 $57,724
======= ======== =======
</TABLE>
*Inception date is December 31, 1993.
See notes to financial statements.
38
<PAGE> 41
NOTES TO FINANCIAL STATEMENTS
December 31, 1994
1. ORGANIZATION
The Strong Growth Funds consist of Strong Opportunity Fund, Inc.,
Strong Growth Fund, Inc., Strong Common Stock Fund, Inc., Strong
Discovery Fund, Inc., Strong International Stock Fund, Inc. and Strong Asia
Pacific Fund, Inc. The Funds are separately incorporated, diversified,
open-end management investment companies registered with the Securities and
Exchange Commission under the Investment Company Act of 1940.
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 -- Investments in securities for which market
quotations are readily available are valued at fair value as
determined by a pricing service on the basis of the average of the
most recent bid and asked prices in the principal market (closing
sales prices if the principal market is an exchange) in which such
securities are normally traded. Securities for which 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 Directors of the Funds. Debt securities
which are purchased within 60 days of their stated maturity are valued
at amortized cost, which approximates current value.
The Funds own certain investment securities which are
restricted as to resale. These securities are valued by the Funds
after giving due consideration to pertinent factors including recent
private sales, market conditions, and the issuer's financial
performance. Where future disposition of these securities requires
registration under the Securities Act of 1933, the Funds have the
right to include their securities in such registration, generally
without cost to the Funds. Aggregate cost and fair value of these
restricted securities held at December 31, 1994 were as follows:
<TABLE>
<CAPTION>
STRONG STRONG STRONG
OPPORTUNITY FUND GROWTH FUND COMMON STOCK FUND
----------------- ------------------- -----------------
<S> <C> <C> <C>
Aggregate Cost $2,194,125 $411,750 $13,985,750
Aggregate Fair Value 3,725,425 501,750 14,810,300
Percent of Net Assets 0.5% 0.5% 1.9%
</TABLE>
<TABLE>
<CAPTION>
STRONG STRONG STRONG
DISCOVERY FUND INTERNATIONAL STOCK FUND ASIA PACIFIC FUND
------------------ ------------------------ -----------------
<S> <C> <C> <C>
Aggregate Cost $972,652 $6,717,889 $6,704,953
Aggregate Fair Value 839,625 6,708,556 6,287,505
Percent of Net Assets 0.2% 2.6% 10.9%*
</TABLE>
*Of these securities, which are restricted from resale, 100% are eligible for
resale pursuant to Rule 144A under the Securities Act of 1933 and also have
been determined to be liquid by the Advisor based upon guidelines established
by the Fund's Board of Directors.
(B) Federal Income and Excise Taxes and Distributions to Shareholders --
It is the Funds' policy 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.
The character of distributions made during the year from net investment
income or net realized gains 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.
(C) Realized Gains and Losses on Investment Transactions -- The Funds
determine the gain or loss realized on investment transactions by
comparing the identified cost of the security lot sold with the net
sales proceeds.
(D) Futures -- The Funds, except for Strong Common Stock Fund, may enter
into futures contracts to provide protection against adverse movements
in the prices of securities in the portfolio. Upon entering into a
futures contract, the Funds pledge to the broker cash or U.S.
government securities equal to the minimum "initial margin"
requirements of the exchange. Additionally, the Funds 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 by the Funds as unrealized
gains or losses. When a futures contract is closed, the Funds record a
realized 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.
The use of futures contracts involves, to varying degrees,
elements of market risk in excess of the amount recognized in the
statement of assets and liabilities. The predominant risk is that the
movement in the price of the futures contract may not correlate
perfectly with the movement in the prices of the assets being hedged. A
lack of correlation could render the portfolio's hedging strategy
unsuccessful and could result in a loss to the portfolio.
39
<PAGE> 42
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 1994
Futures contracts open at December 31, 1994 were as follows:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT VALUE DEPRECIATION
FUND COLLATERAL (PAR VALUE) CONTRACTS (IN THOUSANDS) EXPIRATION (IN THOUSANDS)
---- --------------------- --------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C>
Strong Opportunity Fund U.S. Treasury Bills: 69 S&P 500 (Long) $15,917 Mar. 1995 $53
$750,000 Due 2/09/95
$610,000 Due 3/02/95
$75,000 Due 3/09/95
Strong Growth Fund U.S. Treasury Bills: 2 S&P Midcap (Short) (171) Mar. 1995 05
$10,000 Due 2/02/95
$10,000 Due 2/09/95
</TABLE>
(E) Options -- The Funds, except for the Strong Common Stock Fund, may
engage in options transactions to hedge against expected declines of
their portfolio securities. Premiums received by the Funds upon
writing covered call options are recorded in each Fund's statement of
assets and liabilities as an asset with a corresponding liability
which is subsequently adjusted to the current market value of the
option. When an option expires, is exercised, or is closed, each Fund
realizes a gain or loss, and the liability is eliminated. Each Fund
continues to bear the risk of a decline in the price of the underlying
security during the period, although any potential loss during the
period would be reduced by the amount of the option premium received.
Each of the Funds, including the Strong Common Stock Fund, may
also purchase stock index options for any purpose, write covered stock
index options for hedging purposes, and enter into related closing
transactions. A stock index option generally is similar to an option
covering a specific security, except that delivery of cash rather than
the underlying security is made.
Written option activity for Strong Common Stock Fund for the year
ended December 31, 1994 is as follows:
<TABLE>
<CAPTION>
PREMIUMS
NUMBER (IN THOUSANDS)
------ --------------
<S> <C> <C>
Options outstanding at December 31, 1993 160 $38
Options written during the year 12,442 8,331
Options cancelled in closing purchase transactions (12,602) (8,369)
------- ------
Options outstanding at December 31, 1994 -- --
======= ======
</TABLE>
The cost of cancelling options in closing purchase transactions
was $7,792,549, resulting in capital gains of $576,265.
The use of written option contracts involves elements of market
risk in excess of the amount recognized in the statement of assets and
liabilities. The contract value represents a Fund's involvement in
these financial instruments. When required, a Fund will set aside
permissible liquid assets in a segregated account to secure its
potential obligations under its options positions.
(F) Foreign Currency Translation -- Investment securities and other assets
and liabilities denominated in foreign currencies are converted 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.
(G) When-Issued Securities -- Strong Growth Fund may purchase securities
on a when-issued or delayed delivery basis. Although the payment and
interest terms of these securities are established at the time the
purchaser enters into the agreement, these securities may be delivered
and paid for at a future date, generally within 45 days. The Fund
records purchases of when-issued securities and reflects the values of
such securities in determining net asset value in the same manner as
other portfolio securities. The Fund segregates and maintains at all
times cash, cash equivalents, or other high-quality liquid debt
securites in an amount at least equal to the amount of outstanding
commitments for when-issued securities.
(H) Other -- Portfolio transactions are recorded on the trade date.
Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis.
40
<PAGE> 43
3. NET ASSETS
Net assets as of December 31, 1994 were as follows (in thousands):
<TABLE>
<CAPTION>
STRONG STRONG STRONG COMMON
OPPORTUNITY FUND GROWTH FUND STOCK FUND
---------------- ----------- -------------
<S> <C> <C> <C>
Capital Stock $749,386 $101,493 $736,817
Undistributed Net Investment Loss -- (67) --
Undistributed Net Realized Gain (Loss) 6,647 (1,912) 7,216
Net Unrealized Appreciation 49,667 6,495 46,092
-------- -------- --------
Net Assets $805,700 $106,009 $790,125
======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
STRONG STRONG INTERNATIONAL STRONG ASIA
DISCOVERY FUND STOCK FUND PACIFIC FUND
-------------- -------------------- ------------
<S> <C> <C> <C>
Capital Stock $409,312 $271,948 $63,528
Undistributed Net Investment Income (Loss) 25 (114) (33)
Undistributed Net Realized Gain (Loss) (11,405) (463) (495)
Net Unrealized Depreciation (9,522) (13,541) (5,276)
-------- -------- -------
Net Assets $388,410 $257,830 $57,724
======== ======== =======
</TABLE>
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of the Funds during 1994 and 1993 were as follows
(in thousands):
<TABLE>
<CAPTION>
1994 1993
------------------------- -----------------
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
<S> <C> <C> <C> <C>
STRONG OPPORTUNITY FUND
Shares Sold 19,268 $552,372 12,352 $333,550
Shares Issued in Reinvestment of Dividends 1,202 33,506 759 20,905
Shares Redeemed (7,100) (201,932) (5,224) (143,421)
------ -------- ----- --------
Net Increase 13,370 $383,946 7,887 $211,034
====== ======== ===== ========
STRONG GROWTH FUND
Shares Sold 12,148 $135,056
Shares Issued in Reinvestment of Dividends 44 455
Shares Redeemed (3,071) (34,118)
------ --------
Net Increase 9,121 $101,393
====== ========
STRONG COMMON STOCK FUND
Shares Sold 12,780 $228,135 38,186 $622,439
Shares Issued in Reinvestment of Dividends 2,874 48,507 1,963 34,685
Shares Redeemed (10,938) (193,998) (9,567) (162,068)
------ -------- ----- --------
Net Increase 4,716 $82,644 30,582 $495,056
====== ======== ====== ========
STRONG DISCOVERY FUND
Shares Sold 24,287 $415,186 16,516 $278,817
Shares Issued in Reinvestment of Dividends 1,843 29,781 1,190 20,720
Shares Redeemed (18,065) (305,538) (13,059) (219,062)
------ -------- ----- --------
Net Increase 8,065 $139,429 4,647 $ 80,475
====== ======== ===== ========
STRONG INTERNATIONAL STOCK FUND
Shares Sold 24,930 $357,479 11,575 $143,518
Shares Issued in Reinvestment of Dividends 1,818 23,412 143 1,999
Shares Redeemed (15,428) (218,414) (3,961) (49,017)
------ -------- ----- --------
Net Increase 11,320 $162,477 7,757 $ 96,500
====== ======== ===== ========
STRONG ASIA PACIFIC FUND
Shares Sold 11,796 $119,485
Shares Issued in Reinvestment of Dividends 78 729
Shares Redeemed (5,707) (56,786)
------ --------
Net Increase 6,167 $63,428
====== ========
</TABLE>
41
<PAGE> 44
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 1994
5. RELATED PARTY TRANSACTIONS
Strong Capital Management, Inc. (the ''Advisor''), with whom certain officers
and a director of the Funds are affiliated, provides investment advisory
services and shareholder recordkeeping and related services to the Funds.
Investment advisory fees, which are established by terms of the Advisory
Agreements, are based on annualized rates of 1.00% of the average daily net
assets of the Funds. Advisory fees are subject to reimbursement by the Advisor
if the Funds' operating expenses exceed certain levels. Shareholder
recordkeeping and related service fees are based on contractually established
rates for each open and closed shareholder account. In addition, the Advisor is
compensated for certain other services related to costs incurred for reports to
shareholders.
Certain information regarding these transactions for the year ended December
31, 1994 is as follows (in thousands):
<TABLE>
<CAPTION>
STRONG STRONG STRONG
OPPORTUNITY FUND GROWTH FUND COMMON STOCK FUND
---------------- ----------- -----------------
<S> <C> <C> <C>
Payable to Advisor at December 31, 1994 $715 $118 $702
Other Shareholder Servicing Expenses Paid to Advisor 34 4 42
Unaffiliated Directors' Fees 7 2 10
</TABLE>
<TABLE>
<CAPTION>
STRONG STRONG INTERNATIONAL STRONG
DISCOVERY FUND STOCK FUND ASIA PACIFIC FUND
-------------- -------------------- -----------------
<S> <C> <C> <C>
Payable to Advisor at December 31, 1994 $338 $302 $171
Other Shareholder Servicing Expenses Paid to Advisor 24 19 6
Unaffiliated Directors' Fees 5 3 2
</TABLE>
During 1994, the Advisor settled an SEC administrative action involving
security transactions between mutual funds managed by the Advisor. The SEC's
order alleged that certain transactions involved did not fully comply with Rule
17a-7 under the Investment Company Act of 1940 that sets forth a number of
detailed requirements for cross trades. As part of the settlement, the Advisor
reimbursed Strong Discovery Fund $70,564 for pricing errors in effecting
certain of these trades between 1987 and early 1990.
6. TRANSACTIONS WITH AFFILIATED COMPANIES
An affiliated company is a company in which a Fund has ownership of at least 5%
of the voting securities. Transactions during the year with companies which are
or were affiliates are as follows (in thousands):
<TABLE>
<CAPTION>
PURCHASE SALES REALIZED DIVIDEND VALUE AT
COST COST GAIN (LOSS) INCOME DEC. 31, 1994
------- -------- ---------- -------- -------------
<S> <C> <C> <C> <C> <C>
STRONG OPPORTUNITY FUND
ROC Communities, Inc. $ 4,309 $ 3,394 ($ 232) $429 $ 5,072
STRONG COMMON STOCK FUND
Apartment Investment and Management Company $10,249 $ -- $ -- $158 $ 9,574
Software Spectrum, Inc. 571 1,165 (302) -- 5,745
Younkers, Inc. 44 9,631 (3,437) -- --
------- ------- ------- ---- -------
$10,864 $10,796 $(3,739) $158 $15,319
======= ======= ======= ==== =======
STRONG DISCOVERY FUND
American Family Restaurants, Inc. $ 800 $ 80 ($ 4) -- $ 522
Companhia Energetica de Minas Gerais ADR 4,989 1,809 (143) -- 2,959
Just For Feet, Inc. 5,573 3,979 2,353 -- 2,603
SFX Broadcasting, Inc. -- 997 (108) -- 2,405
------- ------- ------- ---- -------
$11,362 $ 6,865 $ 2,098 -- $ 8,489
======= ======= ======= ==== =======
</TABLE>
7. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of long-term securities during 1994 were as
follows (in thousands):
<TABLE>
<CAPTION>
STRONG STRONG STRONG
OPPORTUNITY FUND GROWTH FUND COMMON STOCK FUND
---------------- ----------- -----------------
<S> <C> <C> <C>
Purchases $623,589 $253,645 $608,390
Sales 332,890 164,848 599,401
</TABLE>
<TABLE>
<CAPTION>
STRONG STRONG INTERNATIONAL STRONG
DISCOVERY FUND STOCK FUND ASIA PACIFIC FUND
-------------- -------------------- -----------------
<S> <C> <C> <C>
Purchases $2,016,869 $429,019 $104,869
Sales 1,906,560 298,642 48,047
</TABLE>
42
<PAGE> 45
8. INCOME TAX INFORMATION
At December 31, 1994 the investment cost, gross unrealized appreciation and
depreciation on investments and capital loss carryovers (expiring in varying
amounts through 2002) for Federal income tax purposes were as follows (in
thousands):
<TABLE>
<CAPTION>
STRONG STRONG STRONG
OPPORTUNITY FUND GROWTH FUND COMMON STOCK FUND
---------------- ----------- -----------------
<S> <C> <C> <C>
Aggregate Investment Cost $756,885 $106,084 $742,714
Aggregate Unrealized:
Appreciation $ 88,553 $ 7,257 $ 90,802
Depreciation (39,208) (1,178) (46,003)
-------- -------- --------
$ 49,345 $ 6,079 $ 44,799
======== ======== ========
Capital Loss Carryovers -- $ 1,497 --
======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
STRONG STRONG INTERNATIONAL STRONG ASIA
DISCOVERY FUND STOCK FUND PACIFIC FUND
-------------- -------------------- ------------
<S> <C> <C> <C>
Aggregate Investment Cost $378,247 $273,794 $62,784
Aggregate Unrealized:
Appreciation $ 15,239 $ 9,109 $ 1,923
Depreciation (27,434) (22,536) (7,227)
-------- --------- -------
($12,195) ($ 13,427) ($5,304)
======== ========= =======
Capital Loss Carryovers -- -- $ 425
======== ========= =======
</TABLE>
For corporate shareholders in the Funds, the percentages of total "dividend"
transactions shown on the year end account statement which are designated as
qualifying for the dividends received deduction are: Strong Opportunity Fund
100.0%, Strong Growth Fund 58.0%, Strong Common Stock Fund 100.0%, Strong
Discovery Fund 28.1%, Strong International Stock Fund 0.0% and Strong Asia
Pacific Fund 30.5%.
9. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Forward foreign currency exchange contracts are typically used by the Funds to
hedge currency exposure related to receivables from securities sold and
payables for securities purchased. Forward foreign currency exchange contracts
are valued at the forward rate and are marked-to-market daily. The change in
market value is recorded by the Funds 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.
The use of forward foreign currency exchange contracts does not eliminate
fluctuations in the underlying prices of the Funds' portfolio securities, but
it does establish a rate of exchange that can be achieved in the future.
Although forward foreign currency exchange contracts limit the risk of loss due
to a decline in the value of the hedged currency, they also limit any potential
gain that might result should the value of the currency increase. In addition,
the Funds could be exposed to risks if the counterparties to the contracts are
unable to meet the terms of their contracts.
At December 31, 1994, the Funds had entered into forward foreign currency
exchange contracts as follows:
<TABLE>
<CAPTION>
UNREALIZED
CURRENCY TO CONTRACT TO MATURITY DEPRECIATION
FUND BE DELIVERED DELIVER IN EXCHANGE FOR DATE (IN THOUSANDS)
---- ------------ ------------ -------------- --------- --------------
<S> <C> <C> <C> <C> <C>
Strong International Stock Fund Japanese Yen 1,243,320,000 USD 12,458,116 2/15/95 $85
Japanese Yen 1,360,320,000 USD 13,630,461 2/15/95 93
Strong Asia Pacific Fund Japanese Yen 282,855,300 USD 2,834,221 2/15/95 20
Japanese Yen 313,920,000 USD 3,145,491 2/15/95 21
</TABLE>
10. FOREIGN INVESTMENTS
Investments in foreign markets can pose more risks than U.S. investments, and
to the extent that each Fund invests in foreign securities, each Fund's share
price is expected to be more volatile than that of a U.S. securities-only fund.
The value of each Fund's foreign securities will fluctuate with changes in
stock market conditions, currency values, interest rates, foreign government
regulations, and economic and political conditions in countries in which each
Fund invests. These risks are generally intensified for investments in emerging
markets.
43
<PAGE> 46
FINANCIAL HIGHLIGHTS
The following presents information relating to a share of capital stock of each
of the Funds, outstanding for the entire period.
STRONG OPPORTUNITY FUND
<TABLE>
<CAPTION>
1994 1993 1992 1991 1990
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 28.23 $ 24.70 $ 21.24 $ 16.29 $ 19.21
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income .13 0.06 0.06 0.21 0.63
Net Realized and Unrealized Gains (Losses)
on Investments 0.76 5.10 3.62 4.93 (2.77)
-------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS 0.89 5.16 3.68 5.14 (2.14)
LESS DISTRIBUTIONS
From Net Investment Income (0.13) (0.06) (0.06) (0.19) (0.74)
From Net Realized Gains (1.28) (1.57) (0.16) -- (0.04)
From Capital -- -- -- -- --
-------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS (1.41) (1.63) (0.22) (0.19) (0.78)
-------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 27.71 $ 28.23 $ 24.70 $ 21.24 $ 16.29
======== ========= ========= ========= =========
Total Return +3.2% +21.2% +17.4% +31.7% -11.3%
Net Assets, End of Period (In Thousands) $805,700 $ 443,503 $ 193,208 $ 159,667 $ 131,919
Ratio of Expenses to Average Net Assets 1.4% 1.4% 1.5% 1.7% 1.7%
Ratio of Net Investment Income to Average
Net Assets 0.5% 0.2% 0.3% 1.1% 3.3%
Portfolio Turnover Rate 59.2% 109.1% 138.5% 270.5% 275.0%
STRONG DISCOVERY FUND
<CAPTION>
1994 1993 1992 1991 1990
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 18.05 $ 16.01 $ 17.49 $ 12.51 $ 13.18
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) 0.16 (0. 01) (0.6) -- 0.27
Net Realized and Unrealized Gains (Losses)
on Investments (1.17) 3.48 0.23 8.41 (0.63)
-------- --------- -------- --------- --------
TOTAL FROM INVESTMENT OPERATIONS (1.01) 3.47 0.17 8.41 (0.36)
LESS DISTRIBUTIONS
From Net Investment Income (0.11) -- -- -- (0.31)
In Excess of Net Investment Income (0.58) (0.45) -- -- --
From Net Realized Gains (0.68) (0.98) (1.65)(1) (3.43)(2) --
-------- --------- -------- --------- --------
TOTAL DISTRIBUTIONS (1.37) (1.43) (1.65) (3.43) (0.31)
-------- --------- -------- --------- --------
NET ASSET VALUE, END OF PERIOD $ 15.67 $ 18.05 $ 16.01 $ 17.49 $ 12.51
======== ========= ======== ========= ========
Total Return - 5.7% +22.2% +1.9% +67.6% - 2.7%
Net Assets, End of Period (In Thousands) $388,410 $ 301,789 $193,276 $ 162,499 $ 56,260
Ratio of Expenses to Average Net Assets 1.5% 1.5% 1.5% 1.6% 1.9%
Ratio of Net Investment Income to
Average Net Assets 0.7% (0.2%) (0.4%) 0.0% 2.1%
Portfolio Turnover Rate 606.1% 668.2% 1,258.6% 1,059.9% 493.9%
</TABLE>
(1)Includes $1.50 ordinary income distribution for tax purposes.
(2)Includes $0.83 ordinary income distribution for tax purposes.
44
<PAGE> 47
STRONG OPPORTUNITY FUND
<TABLE>
<CAPTION>
1989 1988 1987 1986
------- ------- ------- -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.90 $ 15.87 $ 15.99 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.84 1.35 0.27 0.05
Net Realized and Unrealized Gains (Losses)
on Investments 2.31 1.23 1.65 5.94
------- ------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS 3.15 2.58 1.92 5.99
LESS DISTRIBUTIONS
From Net Investment Income (0.68) (1.37) (0.24) --
From Net Realized Gains (0.16) -- (1.80) --
From Capital -- (0.18) -- --
------- ------- -------- -------
TOTAL DISTRIBUTIONS (0.84) (1.55) (2.04) --
------- ------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 19.21 $ 16.90 $ 15.87 $ 15.99
======== ======== ======== =======
Total Return +18.5% +16.5% +11.9% +59.9%
Net Assets, End of Period (In Thousands) $205,043 $157,353 $153,573 $43,632
Ratio of Expenses to Average Net Assets 1.6% 1.6% 1.5% 1.7%
Ratio of Net Investment Income to Average
Net Assets 4.3% 7.4% 1.7% 0.7%
Portfolio Turnover Rate 305.6% 352.4% 371.2% 170.2%
STRONG DISCOVERY FUND
<CAPTION>
1989 1988
-------- ----------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.44 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) 0.30 0.95
Net Realized and Unrealized Gains (Losses)
on Investments 2.43 1.49
--------- -----------
TOTAL FROM INVESTMENT OPERATIONS 2.73 2.44
LESS DISTRIBUTIONS
From Net Investment Income (0.28) (0.97)
In Excess of Net Investment Income -- --
From Net Realized Gains (0.71) (0.03)
--------- -----------
TOTAL DISTRIBUTIONS (0.99) (1.00)
--------- -----------
NET ASSET VALUE, END OF PERIOD $ 13.18 $ 11.44)
========= ===========
Total Return +24.0% +24.5%
Net Assets, End of Period (In Thousands) $ 57,914 $ 13,648
Ratio of Expenses to Average Net Assets 1.9% 2.0%
Ratio of Net Investment Income to
Average Net Assets 2.4% 11.9%
Portfolio Turnover Rate 549.6% 441.6%
</TABLE>
45
<PAGE> 48
FINANCIAL HIGHLIGHTS (continued)
STRONG GROWTH FUND
<TABLE>
<CAPTION>
1994
----
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income --
Net Realized and Unrealized Gains on Investments 1.72
--------
TOTAL FROM INVESTMENT OPERATIONS 1.72
LESS DISTRIBUTIONS
In Excess of Net Investment Income (0.11)
--------
TOTAL DISTRIBUTIONS (0.11)
--------
NET ASSET VALUE, END OF PERIOD $ 11.61
========
Total Return +17.3%
Net Assets, End of Period (In Thousands) $106,009
Ratio of Expenses to Average Net Assets 1.6%
Ratio of Net Investment Income to Average Net Assets (0.1%)
Portfolio Turnover Rate 385.8%
</TABLE>
STRONG COMMON STOCK FUND
<TABLE>
<CAPTION>
1994 1993 1992 1991 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 17.94 $ 15.07 $ 12.84 $ 10.02 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) 0.04 0.04 0.03 (0.02) 0.07
Net Realized and Unrealized Gains (Losses)
on Investments (0.13) 3.74 2.59 5.42 0.03
-------- -------- -------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS (0.09) 3.78 2.62 5.40 0.10
LESS DISTRIBUTIONS
From Net Investment Income (0.04) (0.04) (0.01) -- (0.08)
From Net Realized Gains (1.07) (0.87) (0.38)(1) (2.58)(2) --
-------- -------- -------- ------- --------
TOTAL DISTRIBUTIONS (1.11) (0.91) (0.39) (2.58)(2) (0.08)
-------- -------- -------- ------- --------
NET ASSET VALUE, END OF PERIOD $ 16.74 $ 17.94 $ 15.07(3) $ 12.84 $10.02
======== ======== ======== ======= ========
Total Return - 0.5% + 25.2% +20.8% +57.1%(2) +1.0%
Net Assets, End of Period (In Thousands) $790,125 $762,086 $179,113 $48,549 $2,432
Ratio of Expenses to Average Net Assets 1.3% 1.4% 1.4% 2.0% 2.0%
Ratio of Net Investment Income to
Average Net Assets 0.3% 0.2% 0.1% (0.5%) 0.9%
Portfolio Turnover Rate 83.0% 80.9% 291.7% 2,460.7% 291.2%
</TABLE>
(1)Includes $0.22 ordinary income distribution for tax purposes.
(2)Ordinary income distribution for tax purposes.
46
<PAGE> 49
STRONG INTERNATIONAL STOCK FUND
<TABLE>
<CAPTION>
1994 1993 1992**
---- ---- ----
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.18 $ 9.77 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.06 -- 0.05
Net Realized and Unrealized Gains
(Losses) on Investments (0.27) 4.66 (0.23)
-------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS (0.21) 4.66 (0.18)
LESS DISTRIBUTIONS
From Net Investment Income (0.01) -- (0.05)
In Excess of Net Investment Income -- (0.02) --
From Net Realized Gains (1.25) (0.23) --
In Excess of Net Realized Gains (0.06) -- --
-------- -------- -------
TOTAL DISTRIBUTIONS (1.32) (0.25) (0.05)
-------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 12.65 $ 14.18 $ 9.77
======== ======== =======
Total Return - 1.6% +47.8% - 1.8%
Net Assets, End of Period (In Thousands) $257,830 $128,445 $12,723
Ratio of Expenses to Average Net Assets 1.7% 1.9% 2.0%*
Ratio of Net Investment Income to Average
Net Assets 0.3% (0.3%) 0.8%*
Portfolio Turnover Rate 136.5% 139.9% 25.2%*
</TABLE>
STRONG ASIA PACIFIC FUND
<TABLE>
<CAPTION>
1994
----
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.05
Net Realized and Unrealized Losses on Investments (0.57)
--------
TOTAL FROM INVESTMENT OPERATIONS (0.52)
LESS DISTRIBUTIONS
From Net Investment Income (0.01)
In Excess of Net Realized Gains (0.12)
--------
TOTAL DISTRIBUTIONS (0.13)
--------
NET ASSET VALUE, END OF PERIOD $ 9.35
========
Total Return - 5.3%
Net Assets, End of Period (In Thousands) $ 57,724
Ratio of Expenses to Average Net Assets 2.0%
Ratio of Net Investment Income to Average
Net Assets 0.6%
Portfolio Turnover Rate 103.3%
</TABLE>
*Calculated on an annualized basis.
**Inception date is March 4, 1992. Total return is not annualized.
47
<PAGE> 50
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of the
Strong Growth Funds
We have audited the accompanying statements of assets and liabilities of Strong
Opportunity Fund, Inc., Strong Growth Fund, Inc., Strong Common Stock Fund,
Inc., Strong Discovery Fund, Inc., Strong International Stock Fund, Inc. and
Strong Asia Pacific Fund, Inc. (collectively referred to herein as the "Strong
Growth Funds"), including the schedules of investments in securities, as of
December 31, 1994, and the related statements of operations for the year then
ended, the statements of changes in net assets for the year ended December 31,
1994 for Strong Growth Fund, Inc. and Strong Asia Pacific Fund, Inc. and for
each of the two years in the period ended December 31, 1994 for the other
Strong Growth Funds, and the financial highlights for each of the periods
indicated. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1994 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the Strong Growth Funds as of December 31, 1994, the results of their
operations for the year then ended, the changes in their net assets for the
year ended December 31, 1994 for Strong Growth Fund, Inc. and Strong Asia
Pacific Fund, Inc., and for each of the two years in the period ended December
31, 1994 for the other Strong Growth Funds, and the financial highlights for
each of the periods indicated, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
Milwaukee, Wisconsin
February 2, 1995
48
<PAGE> 51
DIRECTORS OF THE FUND
Richard S. Strong
Marvin E. Nevins
Willie D. Davis
OFFICERS OF THE FUND
Richard S. Strong
Chairman of the Board
John Dragisic
Vice Chairman
Lawrence A. Totsky
Vice President
Thomas P. Lemke
Vice President
Ann E. Oglanian
Secretary
Thomas M. Zoeller
Treasurer
Investment Advisor
Strong Capital Management, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
Distributor
Strong Funds Distributors, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
Custodians
Firstar Trust Company
P.O. Box 701, Milwaukee, Wisconsin 53201
Brown Brothers Harriman & Co.
40 Water Street, Boston, Massachusetts 02109
Transfer Agent and Dividend-Disbursing Agent
Strong Capital Management, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
Auditors
Coopers & Lybrand L.L.P.
411 East Wisconsin Avenue, Milwaukee, Wisconsin 53202
Legal Counsel
Godfrey & Kahn, S.C.
780 North Water Street, Milwaukee, Wisconsin 53202
Kirkpatrick & Lockhart
1800 M Street, N.W., Washington, D.C. 20036
Ticker Symbols
SOPFX-The Strong Opportunity Fund
SGROX-The Strong Growth Fund
STCSX-The Strong Common Stock Fund
STDIX-The Strong Discovery Fund
STISX-The Strong International Stock Fund
SASPX-The Strong Asia Pacific Fund
<PAGE> 52
FOR LITERATURE AND INFORMATION REQUESTS,
CALL 1-800-368-1030.
TO DISCUSS AN EXISTING ACCOUNT OR
CONDUCT A TRANSACTION,
CALL 1-800-368-3863.
This report must be preceded or accompanied by the prospectus for
the Strong Growth Funds.
[STRONG LOGO]
STRONG FUNDS DISTRIBUTORS, INC.
P.O. Box 2936
Milwaukee, Wisconsin 53201
