<PAGE> 1
SEMIANNUAL REPORT
JUNE 30, 1995
THE STRONG
GROWTH FUNDS
[PICTURE OF MAN & WOMAN]
THE STRONG OPPORTUNITY FUND
THE STRONG GROWTH FUND
THE STRONG COMMON STOCK FUND
THE STRONG DISCOVERY FUND
THE STRONG INTERNATIONAL STOCK FUND
THE STRONG ASIA PACIFIC FUND
[STRONG FUNDS LOGO]
<PAGE> 2
EIGHT BASIC PRINCIPLES FOR
SUCCESSFUL MUTUAL FUND INVESTING
These common sense rules are followed by many successful investors. They make
sense for beginners, too. If you have a question on these principles, or would
like to discuss them with us, please contact us at 1-800-368-3863. We're here
24 hours a day, seven days a week to take your call.
1. Have a plan. Even a simple plan can help you take control of your financial
future. Review your plan once a year, or if your circumstances change.
2. Start investing as soon as possible. Make time a valuable ally. Let it put
the power of compounding to work for you, while helping to reduce your
potential investment risk.
3. Diversify your portfolio. By investing in different asset classes--stocks,
bonds, and cash--you help protect against poor performance in one type of
investment while including investments most likely to help you achieve your
important goals.
4. Invest regularly. Investing is a process, not a one-time event. Make a habit
of investing. And make it easy for yourself with an "automatic investment
plan." This popular strategy not only helps you manage investment risk, it
also ensures you "pay yourself first" on a regular basis.
5. Maintain a long-term perspective. For most individuals, the best discipline
is staying invested as market conditions change. Reactive, emotional
investment decisions are all too often a source of regret--and of principal
loss.
6. Consider stocks to help achieve major long-term goals. Over time, stocks have
provided the more powerful returns needed to help the value of your
investments stay well ahead of inflation.
7. Keep a comfortable amount of cash in your portfolio. To meet current needs,
including emergencies, use a money market fund or a bank account--not your
long-term investment assets.
8. Know what you're buying. Make sure you understand the potential risks and
rewards associated with each of your investments. Ask questions...request
information...make up your own mind. And choose a fund company that helps you
make informed investment decisions.
<PAGE> 3
TABLE OF CONTENTS
INVESTMENT REVIEWS
The Strong Opportunity Fund . . . . . . . . . . . . . . . . 2
The Strong Growth Fund . . . . . . . . . . . . . . . . . . . 4
The Strong Common Stock Fund* . . . . . . . . . . . . . . . 6
The Strong Discovery Fund . . . . . . . . . . . . . . . . . 8
The Strong International Stock Fund . . . . . . . . . . . . 10
The Strong Asia Pacific Fund . . . . . . . . . . . . . . . . 12
FINANCIAL INFORMATION
Schedules of Investments in Securities
The Strong Opportunity Fund . . . . . . . . . . . . 14
The Strong Growth Fund . . . . . . . . . . . . . . . 16
The Strong Common Stock Fund* . . . . . . . . . . . 19
The Strong Discovery Fund . . . . . . . . . . . . . 21
The Strong International Stock Fund . . . . . . . . 24
The Strong Asia Pacific Fund . . . . . . . . . . . . 29
Statements of Operations . . . . . . . . . . . . . . . . . . 34
Statements of Assets and Liabilities . . . . . . . . . . . . 35
Statements of Changes in Net Assets . . . . . . . . . . . . 36
Notes to Financial Statements . . . . . . . . . . . . . . . 38
FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . 46
*This Fund is currently closed to new investors.
<PAGE> 4
The Strong Opportunity Fund
In pursuit of capital growth, the Strong Opportunity Fund invests at least 70%
of its total assets in equity securities. It currently emphasizes medium-sized
companies that the Fund's advisor believes are under-researched and
attractively valued.
STOCK PRICES RALLY IN FIRST HALF OF 1995
The first six months of 1995 brought good news for investors in U.S. stocks
despite the dollar's slide versus several global currencies and Mexico's
devaluation of the peso. Continued healthy corporate earnings and the explosive
rally in long bonds helped catapult stocks to record highs. Ironically, the
dollar's weakness - and the turmoil in emerging markets that followed the
peso's devaluation - led to a shift in global capital flows back to the U.S.
Investors in the U.S. market particularly favored traditional large-cap growth
stocks. As a result, while mid-cap stocks - as measured by the S&P MidCap 400 -
did well (up 17.62%), they tended to slightly lag the stocks of big companies,
as reflected by the S&P 500's 20.21% gain for the first six months of 1995.*
For the six month period ended June 30, 1995, the Fund's total return was
14.40%.
A STRATEGY EMPHASIZING VALUE
Throughout the first half of 1995, we continued to stringently evaluate
existing and prospective holdings according to our analysis of their "private
value," which is a fancy term for a simple concept...basically, it means
evaluating companies as if we were a private buyer. We seek to determine how
much we would be willing to pay to own the entire company. This gives us a
disciplined way to view the company's value and helps us impartially evaluate
potential winners and losers.
If we get an accurate private value, we generally have a good idea of where the
stock is going to trade for the year. We've discovered that most stocks usually
do not trade below 50% of private value, nor do they trade above the 80%
Growth of an assumed $10,000 investment
from 12/31/85 to 6/30/95
<TABLE>
<CAPTION>
The Strong Opportunity Fund
<S> <C>
12/85 10000
12/86 15990
12/87 17894
12/88 20841
12/89 24694
12/90 21903
12/91 28845
12/92 33851
12/93 41022
12/94 42325
6/95 48419
</TABLE>
<TABLE>
<CAPTION>
S&P MidCap 400 Stock Index
<S> <C>
12/85 10000
12/86 11621
12/87 11383
12/88 13761
12/89 18649
12/90 17693
12/91 26556
12/92 29720
12/93 33866
12/94 32652
6/95 38405
</TABLE>
<TABLE>
<CAPTION>
S&P 500 Stock Index
<S> <C>
12/85 10000
12/86 11866
12/87 12490
12/88 14564
12/89 19179
12/90 18583
12/91 24245
12/92 26091
12/93 28721
12/94 29101
6/95 34983
</TABLE>
<TABLE>
<CAPTION>
Average annual total returns
through 6/30/95
<S> <C>
Since inception 18.06%
on 12/31/85
5-year 14.56%
3-year 18.98%
1-year 17.71%
</TABLE>
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 400
MidCap Index ("S&P 400"). Results include the reinvestment of all dividends and
capital gains distributions. 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 shares.
* Source of the index data: Micropal
2
<PAGE> 5
mark. Clearly, when we have a good idea of a company's trading range, we have a
tremendous advantage in determining the most appropriate time to buy or sell.
This analysis helped us identify several key additions to the portfolio, such
as Gaylord Entertainment (up 15.91% so far this year), and Toys 'R' Us (up
11.43%). Stocks sold because we believed they had become fully valued included
Circus Circus and Eli Lilly.
ASSET ALLOCATION
(as of 6/30/95)
[PIE CHART]
Short-Term Investments 11.4%
Convertible Corporate Bonds 0.7%
Common and Preferred Stocks including Convertibles 87.9%
This allocation is presented as a percentage of net assets, and does not
reflect any options or futures positions held by the Fund. Please see the
Schedule of Investments in Securities for a complete listing of the Fund's
portfolio.
(as of 6/30/95)
<TABLE>
<CAPTION>
% of Net
Company Description Assets
--------------------------------------------------------------------------
<S> <C> <C>
Toys 'R' Us, Inc. Retail - Discount 1.4%
--------------------------------------------------------------------------
Cox Communications, Media - Radio/TV 1.4%
Inc. Class A
--------------------------------------------------------------------------
Arrow Electronics, Inc. Electronics - Part Dist. 1.4%
--------------------------------------------------------------------------
American Greetings Consumer - Misc. 1.4%
Corporation
--------------------------------------------------------------------------
Capital Cities/ABC, Inc. Media - Radio/TV 1.4%
--------------------------------------------------------------------------
</TABLE>
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
In the Fund's 1994 Annual Report, we stated, "should the Federal Reserve's
repeated rate hikes successfully curtail inflation without drastically slowing
economic growth, the market might then focus on the improving earnings picture,
especially for growth companies."
This appeared to be exactly what happened in early 1995. Weaker-than-expected
economic figures indicated a slowing economy and fueled a powerful long-bond
rally. While large-cap stocks felt the positive effects first, we believe the
focus may now shift to mid-cap stocks. Mid-caps were laggards through most of
the 1980s, and are currently attractive based on their relative value and their
expected growth rates. The increased valuations of large-cap issues, given the
1995 rally, simply make the argument for mid-cap stocks even more compelling.
Therefore, we believe the stage may be set for a longer-term cycle during
which mid-cap stocks should outperform large-cap issues. Currently, the market
remains vulnerable if the economy slips into a recession. However, because
many American companies presently possess fairly healthy balance sheets, and
given the Federal Reserve's growing bias toward easing credit, we believe any
downturn would be relatively minor in comparison to the recessions of the
early 1980s.
Long term, we believe the market holds opportunity for investors with the
discipline to demand value as well as strong growth.
Thank you for your continued confidence,
/s/ Richard T. Weiss
Richard T. Weiss
Portfolio Manager
/s/ Marina T. Carlson
Marina T. Carlson
Portfolio Manager
[PHOTO of Richard T. Weiss
and Marina T. Carlson]
3
<PAGE> 6
The Strong Growth Fund
The Strong Growth Fund seeks capital growth. The Fund invests primarily in
equity securities that the Fund's advisor believes have above-average growth
prospects.
STOCKS TAKE OFF IN FIRST HALF OF 1995
After languishing in a trading range for more than 12 months, the stock market
rallied strongly in the first half of 1995, posting a total return greater than
in the previous two years combined. Large-capitalization stocks, as measured by
the S&P 500, led the rally with a 20.21% total return for the period.*
The Strong Growth Fund kept pace with the rally, providing a total return of
19.29% for the first six months of 1995. This helped the Fund maintain a
commanding lead over the market since its inception.
<TABLE>
<CAPTION>
CUMULATIVE TOTAL RETURN
SINCE INCEPTION (12/31/93)
<S> <C>
Strong Growth Fund 39.89%
-------------------------------------------------
S & P 500* 21.80%
-------------------------------------------------
</TABLE>
GROWTH STOCKS LED THE MARKET
The stock market rally was fueled primarily by two factors: falling long-term
interest rates and solid earnings reports. Both factors are very favorable for
growth stocks. Unlike cyclical stocks, which rely more heavily on a thriving
economy to generate increased earnings, growth stocks can typically grow
earnings with less dependence on the state of the economy. Throughout the first
half of 1995, investors were treated to a stream of data indicating a rapid
economic slowdown. As a result, growth stocks grew in favor, particularly those
in the technology sector that reported strong earnings.
IDENTIFYING GROWTH OPPORTUNITY
In keeping with our management style, we emphasized companies that we believe
can grow earnings at an above-average pace. Our purchases in 1995 reflected
both our near-term expectation for lower interest rates and our longer-term
investment themes.
Among the interest rate-sensitive sectors we targeted were specialty retailers,
which tend to benefit from falling rates through increased consumer spending
and cheaper borrowing. Our current favorites in this area include Just For Feet
and Kohl's Corporation. We added to our position in MGIC, a mortgage insurer
that is also poised to benefit from lower rates.
Our other purchases generally followed our longer-term themes.
- Technology, particularly telecommunications software companies such as
Tellabs, ADC Telecommunications, Nokia (a Finland-based maker of cellular
phones and telecommunications equipment), Baan Co. N.V., and SAP AG, the
latter two being leaders in client-server software markets.
- Businesses benefiting from industry consolidation and the drive for
increased productivity, such as Danka Business Systems, Corporate Express,
and U.S. Delivery Systems, a company specializing in same-day package
delivery, an area previously the province of numerous, tiny vendors.
- Companies that dominate their market niche, like Charles Schwab, Boston
Chicken, and Starbucks Corporation, whose aggressive expansion and new
products we believe give the company a shot at McDonald's-like success.
ASSET ALLOCATION
(as of 6/30/95)
[PIE CHART]
Convertible Corporate Bonds 0.4%
Short-Term Investments 1.6%
Common Stocks 98.0%
The Fund's allocation is presented as a percentage of net assets. Please see
the Schedule of Investments in Securities for a complete listing of the Fund's
portfolio.
4
<PAGE> 7
WE ANTICIPATE A SHIFT TOWARD SMALLER-CAP STOCKS
Because market rallies generally impact large-cap, liquid stocks first, we've
been tending to concentrate on companies with particularly strong
fundamentals-Intel, Hewlett-Packard, Medtronic, Microsoft and Citicorp, to name
a few.
Going forward, however, stronger performance is likely to come from mid-cap and
smaller-cap growth stocks, which we feel offer the better opportunities for
several reasons.
- We expect the economy to remain in a slow-growth mode, with interest rates
near current levels or perhaps below. If we're right, investors will tend
to favor growth stocks' ability to increase earnings despite a slowly
growing economy.
- Historically, smaller companies, which tend to be more nimble and adapt
more quickly to change, have been the primary beneficiaries of a growth
stock cycle. And after the run-up in large-cap stocks so far in 1995,
smaller-cap issues appear to offer a better value.
- Congress appears to be serious about cutting the capital
gains tax. Such a cut would result in an excellent [PHOTO of
environment for growth stocks, since it would prompt Ronald C.
investors to emphasize future earnings rather than current Ognar]
taxable income.
Growth stock cycles tend to last for several years. If this is the beginning of
another such cycle, we believe the market currently represents an outstanding
opportunity for long-term investors, especially those who demand solid earnings
at a reasonable price.
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
GROWTH OF AN ASSUMED $10,000 INVESTMENT
from 12/31/93 to 6/30/95
<TABLE>
<CAPTION>
The Strong Growth Fund
<S> <C>
12/93 10000
3/94 10880
6/94 10636
9/94 11454
12/94 11727
3/95 12555
6/95 13989
</TABLE>
<TABLE>
<CAPTION>
S&P 500 Stock Index
<S> <C>
12/93 10000
3/94 9621
6/94 9661
9/94 10134
12/94 10132
3/95 11119
6/95 12180
</TABLE>
<TABLE>
<CAPTION>
Average annual total returns
through 6/30/95
<S> <C>
Since Inception 25.08%
on 12/31/93
1-year 31.53%
</TABLE>
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 distributions. 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.
* Source of index information: Micropal
5
<PAGE> 8
The Strong Common Stock Fund
The Strong Common Stock Fund seeks capital growth. The Fund invests at least
80% of its total assets in equity securities. It currently emphasizes small
companies that the Fund's advisor believes are under-researched and
attractively valued. The Fund remains closed to new investors, an action taken
in March 1993 to limit its asset growth and allow it to continue focusing on
small company stocks.
SMALL-CAP STOCK PRICES RALLY
Despite the dollar's slide versus several global currencies and Mexico's
devaluation of the peso, the first six months of 1995 brought good news for
investors in U.S. stocks. Companies continued to report healthy earnings, while
weaker-than-expected economic numbers ignited an explosive rally in long bonds.
The combination helped catapult stocks to record highs. Ironically, the
currency woes of the dollar and the Mexican peso led to a shift in global
capital flows back to the U.S. As might be expected, investors tended to be
cautious, favoring traditional large-cap growth stocks. As a result, big
companies gained 20.21% during the first six months of 1995, as measured by the
S&P 500. Small-cap stocks gained as well, but lagged their larger cousins, as
reflected in the Russell 2000's 14.42% total return for the same period.*
For the first six months of 1995, the Fund's total return was 17.18%.
WHAT WOULD YOU PAY FOR THIS COMPANY?
Throughout the first half of 1995, we continued to stringently evaluate
existing and prospective holdings according to our analysis of their "private
value," which is a fancy term for a simple concept...basically, it means
evaluating companies as if we were a private buyer. We seek to determine how
much we'd be willing to pay to own the entire company. This gives us a
disciplined way to view the company's value and helps us impartially evaluate
potential winners and losers.
If we get an accurate private value, we generally have a good idea of where the
stock is going to trade for the year. We've discovered that most
Growth of an assumed $10,000 investment
from 12/29/89 to 6/30/95
<TABLE>
<CAPTION>
The Strong Common Stock Fund
<S> <C>
12/89 10000
12/90 10100
12/91 15864
12/92 19161
12/93 23988
12/94 23872
6/95 27972
</TABLE>
<TABLE>
<CAPTION>
Russell 2000 Stock Index
<S> <C>
12/89 10000
12/90 8048
12/91 11754
12/92 13920
12/93 16551
12/94 16249
6/95 18592
</TABLE>
<TABLE>
<CAPTION>
S&P 500 Stock Index
<S> <C>
12/89 10000
12/90 9690
12/91 12642
12/92 13604
12/93 14976
12/94 15174
6/95 18241
</TABLE>
<TABLE>
<CAPTION>
Average annual total returns
through 6/30/95
<S> <C>
Since inception 20.57%
on 12/29/89
5-year 20.82%
3-year 21.59%
1-year 20.34%
</TABLE>
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 distributions. 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. 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.
* Source of the index data: Micropal
6
<PAGE> 9
stocks usually don't trade below 50% or above 80% of private value. Clearly,
when we have a good idea of a stock's trading range, we have a tremendous
advantage when determining the most appropriate time to buy or sell.
Private value analysis is particularly useful when judging the valuations of
small companies, which tend to be less closely followed -- often we have only an
annual report to use in our hard analysis. Our research helped us identify some
of the portfolio's best performers, such as CCH, Inc., a tax and business law
publisher (up 31.8% so far this year) and Tele-Communications, Inc. (up
16.46%). Among the stocks we sold because we believed they'd become fully
valued were Eli Lilly, Legent Corp. and Cabot Corp., all of which were up 30%
or more since we purchased them, and U.S. Shoe, up more than 65%.
ASSET ALLOCATION
(as of 6/30/95)
[PIE CHART]
Short-Term Investments 10.4%
Common Stocks 89.6%
This allocation is presented as a percentage of net assets, and does not
reflect any options or futures positions held by the Fund. Please see the
Schedule of Investments in Securities for a complete listing of the Fund's
portfolio.
FIVE LARGEST STOCK HOLDINGS
(as of 6/30/95)
<TABLE>
<CAPTION>
% of Net
Company Description Assets
----------------------------------------------------------------------
<S> <C> <C>
Cirrus Logic, Inc. Electronics - Semiconductor 1.8%
----------------------------------------------------------------------
Tempest Reinsurance Insurance - Diversified 1.5%
Company, Ltd.
----------------------------------------------------------------------
Capital Cities/ Media - Radio/TV 1.5%
ABC, Inc.
----------------------------------------------------------------------
Cox Communications, Media - Radio/TV 1.5%
Inc. Class A
----------------------------------------------------------------------
Intel Electronics - Semiconductor 1.5%
Corporation
----------------------------------------------------------------------
</TABLE>
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
A POTENTIAL LONG-TERM RALLY FOR SMALL-CAP STOCKS
In the Fund's 1994 Annual Report, we said that, "if the [PHOTO of
Federal Reserve's rate hikes effectively moderate the Richard T.
economy's growth in 1995, upward pressure on rates may Weiss and
subside. With the threat of higher rates removed, Marina T. Carlson]
investors should be free to focus on the growth potential
of stocks."
This appeared to be exactly what happened in early 1995. While the currency
turmoil that marked the period prompted investors to buy more liquid large-cap
stocks first, we believe the emphasis may now shift to small-cap stocks. Small
stocks were laggards through most of the 1980s, and are currently attractive
based on their relative value and their expected growth rates. The increased
valuations of large-cap issues, given the 1995 rally, simply make the argument
for small-cap stocks more compelling.
Therefore, we believe the stage may be set for a longer-term cycle, during
which small-cap stocks should outperform large-cap issues. Currently, the
market remains vulnerable if the economy slips into recession. However, given
the relatively healthy balance sheets of many American companies, and the
Federal Reserve's growing bias toward easing credit, we believe any downturn
would be relatively minor in comparison to the recessions of the early 1980s.
Long term, we believe the market holds opportunity for investors with the
discipline to demand value as well as strong growth.
Thank you for your continued confidence,
/s/ Richard T. Weiss
Richard T. Weiss
Portfolio Manager
/s/ Marina T. Carlson
Marina T. Carlson
Portfolio Manager
7
<PAGE> 10
THE STRONG DISCOVERY FUND
The Strong Discovery Fund is all about growth. We believe that investing in the
common stock of companies that are growing considerably faster than the overall
economy--companies with a special product run by enlightened and dedicated
management--will produce superior investment returns over time for our
shareholders.
Our task is to find those growth companies and own their stock at the most
opportune time. That, in a nutshell, is what drives our investment decisions.
MARKET SUMMARY
The first half of 1995 was a good period for equity investors. The benchmark
S&P 500 Index rose a robust 20.21% during the first six months of the year,
while Strong Discovery increased by 16.66%. While our Fund was a little slow
out of the blocks--finishing the first quarter up a modest 4.53%--the second
quarter saw a much more attractive gain of 11.60%.*
Since its inception in December 1987 through June 30 of this year, Strong
Discovery has generated a cumulative total return of 244.75%.
As of June 30, 1995, the Fund was "fully invested," with nearly all of its
$461.5 million in net assets invested in stocks. The Fund was aggressively
positioned to take advantage of the bull market. At mid-year, the Fund's
diversified portfolio owned stock in a wide variety of domestic and foreign
concerns, from computer software (SAP AG) to copier dealers (Danka Business
Systems) to motorcycles (Harley-Davidson).
PREVAILING THEMES
While our team of investment professionals monitors economic trends across the
nation and the world, four investment themes dominated our portfolio during the
first half of 1995: technology, consolidation, the continued deregulation of
radio and television, and financial services.
TECHNOLOGY. The worldwide technological revolution is having a dramatic effect
on the productivity and efficiency of business and industry. Consequently,
technology stocks were the biggest winners in the market's stellar performance
through the first half of 1995. We believe the advance of technology and its
positive impact on industry will persist. In our portfolio, computer software
manufacturers like the German firm SAP AG and McAfee Associates, a Santa Clara,
California firm that specializes in computer virus software, have positioned
their companies and products for prosperity.
CONSOLIDATION. Across a variety of individual industries, companies are
consolidating to increase efficiency and market share. This is a trend we see
in businesses as diverse as medical services and video rental. In the former
category, we particularly like Medpartners, of Birmingham, Alabama, and Phy
Cor, of Nashville, Tennessee, operators of multi-specialty medical clinics.
In the latter category, the Movie Gallery, based in Dothan, Alabama, has been
strategically acquiring video stores from Texas to Illinois at a steady and
impressive clip.
DEREGULATION OF RADIO AND TELEVISION. Thanks to the continuing pro-deregulation
mood in Washington, some well-positioned and ambitious media companies have
been expanding their operations and growing their earnings at a convincing
rate. Evergreen Media, an Irving, Texas, radio-station complex, and SFX
Broadcasting are two such properties that have made contributions to the Fund's
performance.
FINANCIAL SERVICES. Lower interest rates--a concept that the Federal Reserve has
now embraced--have benefited a number of our holdings in the financial services
sector. A good example of a company poised to capitalize on this trend is
Mercury Finance Company, of Northbrook, Illinois, which,
8
<PAGE> 11
ASSET ALLOCATION
(as of 6/30/95)
[PIE CHART]
Common & Preferred Stocks 95.1%
Cash Equivalents 4.9%
The Fund's allocation is presented as a percentage of net assets. Please see
the Schedule of Investments in Securities for a complete listing of the Fund's
portfolio.
among other credit operations, purchases installment contracts from automobile
dealers and retail vendors.
OUR OUTLOOK
As the second half of the year began, the Federal Reserve, inspired by a
general slowdown in the nation's economy, cut short-term rates by one-quarter
of a percentage point (0.25%). The market responded favorably.
Our portfolio management team believes that inflation will remain under
control, that the Federal Reserve will likely continue to ratchet down interest
rates through the second half of 1995, and that the financial climate--allowing
for an occasional correction--will continue to be hospitable to investors.
And one final, personal note: I think U.S.
industry, pretty much across the board, is
in the best shape I've seen in the nearly [PHOTO of
30 years since I graduated from business Richard S. Strong]
school. Overall, American companies are
more efficient, more productive, and more
competitive than at any moment in my
professional lifetime.
Which, at the risk of sounding repetitious, is good news for growth stocks.
Thank you for your continued confidence in the Strong Discovery Fund. We look
forward to making your investment grow.
Sincerely,
/s/ Richard S. Strong
Richard S. Strong
Portfolio Manager
GROWTH OF AN ASSUMED $10,000 INVESTMENT
from 12/31/87 to 6/30/95
<TABLE>
<CAPTION>
The Strong Discovery Fund
<S> <C>
12/87 10000
12/88 12445
12/89 15428
12/90 15005
12/91 25151
12/92 25639
12/93 31333
12/94 29553
6/95 34475
</TABLE>
<TABLE>
<CAPTION>
S&P 500 Stock Index
<S> <C>
12/87 10000
12/88 11661
12/89 15356
12/90 14879
12/91 19412
12/92 20891
12/93 22996
12/94 23300
6/95 28010
</TABLE>
<TABLE>
<CAPTION>
Average annual total returns
through 6/30/95
<S> <C>
Since inception 17.94%
on 12/31/87
5-year 16.15%
3-year 14.35%
1-year 23.47%
</TABLE>
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 distributions. 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.
* Source of index information: Micropal
9
<PAGE> 12
The Strong International Stock Fund
By investing primarily in the stocks of companies based outside the United
States, the Strong International Stock Fund pursues capital growth. The Fund
provides convenient access to growth opportunities worldwide that, when
compared to a U.S.-only portfolio, may increase return potential.
INTERNATIONAL MARKETS SHOW SIGNS OF RECOVERY IN 1995
Following an uneven performance overall in 1994, international markets began to
show signs of bouncing back in 1995. As the year started, the Mexican peso's
devaluation was still fresh in investors' minds, and many foreign and emerging
markets, particularly Asia, continued to experience capital outflows and
falling prices. As measured by the MSCI EAFE(R) Index, global markets as a
whole were off about 4% at the end of February. Thereafter, investor sentiment
seemed to suggest that a bottom had been reached, and prices began to firm.
The majority of the rebound occurred in Europe, which as a whole posted a total
return of 12.87% for the first half of 1995. Asia, however, was down 5.71%, due
primarily to Japan's underperformance in the face of both continuing economic
sluggishness and a soaring yen that dampened exports. One bright spot was New
Zealand, one of the Fund's largest weightings, which performed well.*
Overall, global markets gained 2.60% year-to-date through June 30, as measured
by the MSCI EAFE(R) Index. In comparison, the Fund's total return was -0.36%.
OUR HIGHLY SELECTIVE APPROACH
Due to the often treacherous nature of many international markets over the past
18 months, our approach has focused on avoiding major pitfalls rather than on
shooting for great upside potential. While this cautious approach helped keep
us out of the more troublesome markets in 1994, it has worked against us
somewhat this year, particularly in Europe, by limiting our exposure to
individual markets that performed better than we anticipated.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
from 3/4/92 to 6/30/95
<TABLE>
<CAPTION>
The Strong International Stock Fund
<S> <C>
3/92 10000
6/92 10190
12/92 9819
6/93 11176
12/93 14508
6/94 14435
12/94 14282
3/95 13690
6/95 14230
</TABLE>
<TABLE>
<CAPTION>
Morgan Stanley Capital International EAFE(R) Index
<S> <C>
3/92 10000
6/92 9718
12/92 9484
6/93 11689
12/93 12572
6/94 13676
12/94 13550
3/95 13802
6/95 13903
</TABLE>
<TABLE>
<CAPTION>
S&P 500 Stock Index
<S> <C>
3/92 10000
6/92 10067
12/92 10907
6/93 11439
12/93 12006
6/94 11600
12/94 12165
3/95 13349
6/95 14624
</TABLE>
<TABLE>
<CAPTION>
Average annual total returns
through 6/30/95
<S> <C>
Since inception 11.19%
on 3/4/92
3-year 11.77%
1-year -1.42%
</TABLE>
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 Europe,
Australasia, and Far East Index ("MSCI EAFE(R)"). Results include the
reinvestment of all dividends and capital gains distributions. The S&P 500 is
an unmanaged index generally representative of the U.S. stock market. The MSCI
EAFE(R) is an unmanaged, market-cap weighted index generally representative of
major overseas stock markets. MSCI EAFE(R) data are 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 shares.
* Source: Morgan Stanley Capital International
10
<PAGE> 13
We have tended to underweight Europe in our portfolio because of its difficult
macro-economic environment--the unpredictable new government in France and the
problems created by the continent's continuing struggle toward a unified
currency are just two factors. So we have generally approached Europe on a
stock-by-stock basis, attempting to uncover good individual stories, such as
Italian car designer Pininfarina.
To us, Asia currently offers a better long-term opportunity. Many countries in
the Pacific Basin boast fast-growing economies and feature markets with
valuations between 14 and 20 times earnings. This compares very favorably to
more mature markets like the United States, whose economy is growing at just 2%
to 3%, but whose stocks are trading at similar valuations overall.
For these reasons, the Fund is currently more heavily weighted toward Asia.
While this positioning resulted in our modestly underperforming the MSCI
EAFE(R) Index in the first half of 1995, we believe it will better serve share-
holders over the long term.
TOP FIVE HOLDINGS BY COUNTRY
(as of 6/30/95)
Japan 14.0%
Australia 8.1%
United Kingdom 7.0%
Singapore 6.9%
New Zealand 6.3%
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
FIVE LARGEST HOLDINGS
(as of 6/30/95)
<TABLE>
<CAPTION>
% of Net
Company Description Assets
------------------------------------------------------------------------
<S> <C> <C>
SensoNor AS Auto & Truck Parts 1.7%
------------------------------------------------------------------------
CDL Hotels Leisure Service 1.6%
International, Ltd.
------------------------------------------------------------------------
Chargeurs Conglomerate 1.3%
------------------------------------------------------------------------
Keppel Corporation, Ltd. Conglomerate 1.3%
------------------------------------------------------------------------
Astra International PT Automobile 1.1%
------------------------------------------------------------------------
</TABLE>
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
AN ATTRACTIVE OPPORTUNITY
Our outlook for international equities is very optimistic for several reasons:
- With the U.S. market at an all-time high, we believe investors may be
prompted to look elsewhere for greater growth potential, which should help
drive international stock prices higher.
- Now that emerging markets, particularly those in Asia, appear to have
settled down following the devaluation of the Mexican peso, investors may
now be free to recognize the fundamental value and enormous growth
potential these markets offer.
- The reasons for investing abroad--increased return potential and greater
diversification--remain quite sound.
Shareholders should remember that investing
a portion of their assets internationally
shouldn't be viewed as a temporary, high-
octane boost to a portfolio. Rather, it's a
sound strategy that may increase return and
reduce overall portfolio volatility over the [PHOTO of
long term. Keep in mind that the Fund is Anthony L.T. Cragg]
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 value 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
11
<PAGE> 14
THE STRONG ASIA PACIFIC FUND
The Strong Asia Pacific Fund seeks capital growth. The Fund invests primarily
in the equity securities of issuers located in Asia or the Pacific Basin.
ASIAN MARKETS RECOVER
After suffering through a difficult 1994, Asian markets began to bounce back in
the second quarter of 1995. The year started inauspiciously with the Mexican
peso's devaluation. Although the problems that prompted the devaluation were
specific to Mexico, many other emerging markets were unfairly colored by the
event. As a result, even the markets of reasonably healthy Asian countries
experienced capital outflows and falling prices. As measured by the Morgan
Stanley Combined Far East Index, Asian markets as a whole were off 1.23% after
the first quarter.
Thereafter, investors seemed to realize that valuations had become too
attractive to ignore, and prices improved steadily during the second quarter.
By the end of June, most Asian countries managed a positive total return for
the first half of 1995. New Zealand, one of the Fund's largest weightings,
performed particularly well. However, Japan was off 8.24% in the face of both
continuing economic sluggishness, and a soaring yen that dampened exports.*
As you might expect, Japan represents an inordinately large share of the
Pacific Basin's market value. As an Asia/Pacific fund, we feel it's important
that Japan be represented in the portfolio, even if its fundamentals are less
than perfect. Consequently, Japan's underperformance helped contribute to the
Fund's flat total return of -0.04% for the first six months of 1995. In
comparison, the Morgan Stanley Combined Far East Index, which excludes Japan,
posted a return of 8.10% for the same period.
DISCRETION OVER VALOR
Due to the fluctuations of Asian markets over the past 18 months, we've tended
to maintain a defensive approach--keeping a relatively high cash position and
overweighting countries that we believed would be less volatile.
Countries that have represented safer harbors include Singapore, which we view
as a "blue chip" economy as strong as any in the Pacific Basin; Indonesia, an
up-and-coming market that we consider an alternative to other volatile,
emerging markets like China and India; and more established "western"-type
markets like Australia and New Zealand.
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 CDL Hotels, one of the Fund's
largest holdings. Based in Hong Kong, CDL is a beneficiary of the growing
tourism/leisure trend in Asia. Two electronics companies, Japan-based Rohm, and
Yageo, based in Taiwan, have also done well, doubling in value since we bought
them.
TOP FIVE HOLDINGS BY COUNTRY
(as of 6/30/95)
Japan 17.3%
Australia 12.6%
Singapore 12.2%
New Zealand 11.0%
Indonesia 8.0%
The Fund's top holdings are presented as a percentage of net assets. These
percentages represent equity holdings. Please see the Schedule of Investments
in Securities for a complete listing of the Fund's portfolio.
REASONS FOR OPTIMISM
The unpredictable nature of Asian markets over the past two years is ample
evidence that they may not be the best choice for short-term investors. But for
investors seeking capital growth over the long term, there are several reasons
why Pacific Rim markets offer a compelling opportunity.
12
<PAGE> 15
- Many countries in the Pacific Basin boast fast-growing economies with
markets featuring valuations between 10 and 20 times earnings. This
compares very favorably to more mature markets like the United States,
whose economy is growing at just 2% to 3%, but whose stock market is
trading at similar valuations overall.
- The weakness of the dollar and the rally in the American stock market have
tended to put international investing on the "back burner" for many money
management firms. Now that the dollar seems to be firming, investors
should be better able to focus on the attractive fundamentals of these
markets.
- American pension funds are an important source of capital for Asian
markets. We believe that Japanese pension funds are due to follow suit,
making massive amounts of capital available for worldwide investment. Our
expectation is that, if Japanese pension plans begin to diversify outside
their own country, Asian economies will be the primary beneficiaries.
Certainly, Asian markets present investment,
currency, political and regulatory uncertainties
that are greater than those associated with the
more mature international markets. But for long- [PHOTO of
term investors looking to diversify into Anthony L.T. Cragg]
aggressive growth stocks, we believe the
opportunity in the region far outweighs the
potential risks.
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
GROWTH OF AN ASSUMED $10,000 INVESTMENT
from 12/31/93 to 6/30/95
<TABLE>
<CAPTION>
The Strong Asia Pacific Fund
<S> <C>
12/93 10000
3/94 9630
6/94 9840
9/94 10116
12/94 9473
3/95 9088
6/95 9469
</TABLE>
<TABLE>
<CAPTION>
Morgan Stanley Capital International EAFE(R) Index
<S> <C>
12/93 10000
3/94 10350
6/94 10878
9/94 10889
12/94 10778
3/95 10979
6/95 11058
</TABLE>
<TABLE>
<CAPTION>
Morgan Stanley Capital International Combined Far East Ex-Japan Free Index
<S> <C>
12/93 10000
3/94 7827
6/94 8165
9/94 9173
12/94 8252
3/95 8150
6/95 8920
</TABLE>
<TABLE>
<CAPTION>
Average annual total returns
through 6/30/95
<S> <C>
Since inception -3.57%
1-year -3.77%
</TABLE>
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 distributions. 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
shares.
* Source: Morgan Stanley Capital International
13
<PAGE> 16
SCHEDULE OF INVESTMENTS IN SECURITIES June 30, 1995 (Unaudited)
STRONG OPPORTUNITY FUND
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
---------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 87.8%*
DOMESTIC STOCKS 75.0%*
AIRLINE 1.1%*
164,700 AMR Corporation + $12,290,737
AUTO & TRUCK PARTS 1.0%*
260,000 The Goodyear Tire & Rubber Company 10,725,000
AUTOMOBILE 0.9%*
344,700 Ford Motor Company 10,254,825
BANK - REGIONAL 2.4%*
339,900 Old Kent Financial Corporation 11,556,600
427,200 West One Bancorp 14,257,800
-----------
25,814,400
BANK - SUPER REGIONAL 1.2%*
246,300 Barnett Banks, Inc. 12,622,875
BROKERAGE & INVESTMENT MANAGEMENT 0.3%*
150,300 ROC Communities, Inc. 3,325,387
CHEMICAL 1.4%*
75,000 Freeport-McMoRan, Inc. 1,321,875
343,000 Vigoro Corporation 14,234,500
-----------
15,556,375
CHEMICAL - SPECIALTY 1.2%*
352,500 Nalco Chemical Company 12,822,187
COMMERCIAL SERVICE 0.7%*
730,000 Rollins Truck Leasing Corporation 7,847,500
COMPUTER - PERIPHERAL EQUIPMENT 1.2%*
340,000 Seagate Technology, Inc. + 13,345,000
COMPUTER - PERSONAL & WORKSTATION 1.2%*
280,000 Sun Microsystems, Inc. + 13,580,000
COMPUTER SOFTWARE 1.9%*
181,000 Legent Corporation + 7,918,750
136,000 Microsoft Corporation + 12,291,000
-----------
20,209,750
CONSUMER - MISCELLANEOUS 1.4%*
515,000 American Greetings Corporation 15,128,125
DIVERSIFIED OPERATIONS 2.4%*
210,600 Tyco International, Ltd. 11,372,400
750,000 Whitman Corporation 14,531,250
-----------
25,903,650
ELECTRIC POWER 1.2%*
392,000 NIPSCO Industries, Inc. 13,328,000
ELECTRONIC PRODUCTS - MISCELLANEOUS 2.2%*
235,000 Hubbell, Inc. Class B 13,277,500
269,000 Raychem Corporation 10,322,875
-----------
23,600,375
ELECTRONICS - PART DISTRIBUTION 2.7%*
310,000 Arrow Electronics, Inc. + 15,422,500
406,400 Marshall Industries + 13,614,400
-----------
29,036,900
ELECTRONICS - SEMICONDUCTOR/COMPONENT 1.2%*
629,800 Dallas Semiconductor Corporation 12,910,900
FOOD 2.3%*
205,000 CPC International, Inc. 12,658,750
233,000 Hershey Foods Corporation 12,873,250
-----------
25,532,000
HEALTHCARE - DRUG/DIVERSIFIED 1.1%*
346,600 Mallinckrodt Group, Inc. 12,304,300
HEALTHCARE - MEDICAL SUPPLY 2.3%*
270,000 McKesson Corporation 12,622,500
305,700 Sybron International Corporation + 12,189,788
-----------
24,812,288
HEALTHCARE - PATIENT CARE 2.3%*
264,600 Integrated Health Services, Inc. 7,938,000
331,000 United Healthcare Corporation 13,695,125
117,150 WellPoint Health Networks, Inc. Class A + 3,309,488
-----------
24,942,613
INSURANCE - PROPERTY & CASUALTY 1.2%*
111,000 American International Group, Inc. 12,654,000
LEISURE SERVICE 1.5%*
345,000 Club Med, Inc. 10,996,875
194,010 Gaylord Entertainment Company 4,898,752
-----------
15,895,627
MEDIA - PUBLISHING 1.3%*
430,000 The E.W. Scripps Company 13,867,500
MEDIA - RADIO/TV 6.3%*
156,000 CBS, Inc. 10,452,000
140,000 Capital Cities/ABC, Inc. 15,120,000
725,000 Comcast Corporation Class A 13,457,812
800,000 Cox Communications, Inc. Class A + 15,500,000
600,000 Tele-Communications, Inc. Class A + 14,062,500
-----------
68,592,312
METALS & MINING 1.1%*
560,000 Freeport-McMoRan Copper & Gold, Inc. Class A 11,550,000
OIL - NORTH AMERICAN EXPLORATION &
PRODUCTION 4.4%*
415,000 Apache Corporation 11,360,625
139,800 Barrett Resources Corporation + 3,250,350
620,000 Devon Energy Corporation 13,330,000
559,000 Enron Oil & Gas Company 12,158,250
468,000 Seagull Energy Corporation + 7,722,000
-----------
47,821,225
OIL - NORTH AMERICAN INTEGRATED 1.7%*
345,000 Ashland, Inc. 12,118,125
206,000 Phillips Petroleum Company 6,875,250
-----------
18,993,375
OIL WELL EQUIPMENT & SERVICE 1.8%*
335,000 Camco International, Inc. 7,830,625
458,500 Dual Drilling Company + 4,527,688
513,700 Offshore Logistics, Inc. + 7,191,800
-----------
19,550,113
POLLUTION CONTROL 1.2%*
465,000 WMX Technologies, Inc. 13,194,375
</TABLE>
See notes to financial statements.
14
<PAGE> 17
STRONG OPPORTUNITY FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
----------------------------------------------------------------------------------------
<S> <C> <C>
PRECIOUS METAL/GEM/STONE 1.2%*
307,900 Newmont Mining Company $ 12,893,312
RETAIL - DEPARTMENT STORE 2.5%*
562,000 Federated Department Stores, Inc. + 14,471,500
296,900 May Department Stores Company 12,358,462
-------------
26,829,962
RETAIL - DISCOUNT & VARIETY 1.4%*
540,000 Toys 'R' Us, Inc. + 15,795,000
RETAIL - FOOD CHAIN 4.1%*
177,800 Albertson's, Inc. 5,289,550
450,600 American Stores Company 12,673,125
532,800 The Kroger Company + 14,319,000
480,000 The Stop & Shop Companies, Inc. + 12,300,000
-------------
44,581,675
RETAIL - MAJOR CHAIN 1.1%*
174,000 Dayton Hudson Corporation 12,484,500
RETAIL - SPECIALTY 2.3%*
610,000 The Limited, Inc. 13,420,000
1,050,000 Ross Stores, Inc. 12,337,500
-------------
25,757,500
SAVINGS & LOAN 0.9%*
454,000 Washington Federal Savings & Loan Association 9,988,000
SHOE & APPAREL MANUFACTURING 1.2%*
672,000 Warnaco Group, Inc. Class A 13,440,000
TELECOMMUNICATION SERVICE 6.2%*
505,000 AirTouch Communications + 14,392,500
105,000 LIN Broadcasting Corporation + 13,282,500
546,400 MCI Communications Corporation 12,020,800
429,800 Paging Network, Inc. + 14,720,650
450,000 United States Cellular Corporation + 13,612,500
-------------
68,028,950
-------------
Total Domestic Stocks 817,810,613
FOREIGN STOCKS 12.8%*
AUSTRALIA 0.4%*
ENGINEERING & CONSTRUCTION 0.1%*
1,435,000 Walker Corporation 457,966
METALS & MINING 0.3%*
1,296,000 Normandy Mining, Ltd. 1,599,274
720,000 Posgold, Ltd. 1,445,066
-------------
3,044,340
-------------
3,502,306
BERMUDA 1.2%*
Insurance - Property & Casualty
477,800 Partners RE Holdings, Ltd. ADR (USD) 12,482,525
CANADA 1.2%*
OIL - NORTH AMERICAN EXPLORATION
& PRODUCTION
730,000 Talisman Energy, Inc. + 13,564,818
HONG KONG 1.0%*
BANK - MONEY CENTER 0.6%*
53,050 HSBC Holdings PLC ADR (USD) 6,804,787
PRECIOUS METAL/GEM/STONE 0.2%*
79,200 Western Deep Levels, Ltd. ADR (USD) 2,237,400
REAL ESTATE 0.2%*
132,000 Wharf Resources, Ltd. ADR (USD) $ 2,153,791
------------
11,195,978
INDIA 0.1%*
CLOSED-END FUND
50,600 Morgan Stanley India Investment
Fund, Inc. (USD) 518,650
JAPAN 0.5%*
ELECTRONIC PRODUCTS - MISCELLANEOUS
116,000 Sony Corporation 5,580,615
MEXICO 0.1%*
AUTOMOBILE
520,526 Consorcio G Grupo Dina S.A. de C.V. Series L
ADR (USD) 1,041,052
NETHERLANDS 0.0%*
CLOSED-END FUND
12,000 Himalayan Fund (USD) + 166,800
NEW ZEALAND 1.2%*
AIRLINE 0.5%*
1,665,000 Air New Zealand, Ltd. Class B 4,843,951
FOOD 0.3%*
1,759,000 Lion Nathan, Ltd. 3,482,201
PAPER & FOREST PRODUCTS 0.4%*
1,900,000 Fletcher Challenge, Ltd. Forestry Division 2,503,318
776,000 Fletcher Challenge, Ltd. Ordinary Division 2,179,753
------------
4,683,071
------------
13,009,223
NORWAY 1.0%*
OIL WELL EQUIPMENT & SERVICE
395,000 Petroleum Geo-Services AS ADR (USD) + 11,356,250
SINGAPORE 1.0%*
BANK - MONEY CENTER 0.3%*
326,000 The Development Bank of Singapore,
Ltd. (Fgn Reg) 3,711,708
CONGLOMERATE 0.5%*
276,000 Jardine Matheson Holdings, Ltd. (USD) 2,028,600
440,000 Keppel Corporation, Ltd. 3,591,837
------------
5,620,437
REAL ESTATE 0.2%*
907,000 Hong Kong Land Holdings, Ltd. (USD) 1,650,740
------------
10,982,885
SOUTH AFRICA 1.0%*
PRECIOUS METAL/GEM/STONE
435,000 De Beers Consolidated Mines, Ltd. ADR (USD) 11,255,625
SWITZERLAND 1.2%*
FOOD
258,900 Nestle SA Sponsored ADR (USD) 13,471,784
TAIWAN 0.3%*
CLOSED-END FUND
1,744,000 Core Pacific Pioneer Fund 546,984
1,469,000 Jardine Fleming Fund + 571,651
1,478,000 Kwang Hua Fortune Fund 552,261
1,347,000 NITC Fu-yuan Fund 571,116
1,430,000 Yuan Ta Duo Yuan Fund 578,622
------------
2,820,634
</TABLE>
15
<PAGE> 18
SCHEDULE OF INVESTMENTS IN SECURITIES (continued) June 30, 1995 (UNAUDITED)
STRONG OPPORTUNITY FUND
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
--------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM 2.6%*
COMMERCIAL SERVICE 1.1%*
244,000 Reuters Holdings PLC ADR (USD) $ 12,230,500
MEDIA - RADIO/TV 1.1%*
620,000 Bell Cablemedia PLC ADR (USD) + 11,780,000
METALS & MINING 0.4%*
1,940,000 Lonrho PLC 4,575,257
--------------
28,585,757
--------------
Total Foreign Stocks 139,534,902
--------------
TOTAL COMMON STOCKS (COST $807,395,704) 957,345,515
CONVERTIBLE PREFERRED STOCK 0.1%*
50,224 The Times Mirror Company
(Cost $1,118,288) 1,199,103
CONVERTIBLE CORPORATE BOND 0.7%*
$ 2,185,000 LSI Logic Corporation Convertible Subordinated
Notes, 5.50%, Due 3/15/01 (Acquired 3/16/94 -
7/06/94; Cost $2,194,125) (r) (Amortized
Cost $2,192,870) 7,276,050
CASH EQUIVALENTS 11.2%*
COMMERCIAL PAPER 11.1%*
DISCOUNTED 11.0%*
11,525,000 American Home Products Corporation
Due 7/07/95 11,517,253
6,000,000 Barnett Banks, Inc.
Due 7/06/95 5,996,965
9,200,000 Columbia Health Care
Due 7/07/95 9,193,795
8,300,000 ConAgra, Inc.
Due 7/07/95 8,294,310
17,775,000 Countrywide Funding Corporation
Due 7/07/95 17,763,091
18,000,000 Enserch Corporation
Due 7/06/95 17,990,745
10,000,000 Great Western Bank
Due 7/06/95 9,994,917
12,955,000 Louisiana Land & Exploration Company
Due 7/07/95 12,946,119
8,200,000 Olin Corporation
Due 7/07/95 8,194,488
7,800,000 Paine Webber Group, Inc.
Due 7/03/95 7,800,000
1,000,000 Renaissance Energy Company
Due 7/06/95 999,488
10,000,000 Tyson Foods, Inc.
Due 7/12/95 9,984,825
--------------
120,675,996
INTEREST BEARING, DUE UPON DEMAND 0.1%*
280,100 General Mills, Inc., 5.71% 280,100
15,000 Pitney Bowes Credit Corporation, 5.73% 15,000
292,800 Southwestern Bell Telephone Company, 5.71% 292,800
6,700 Wisconsin Electric Power Company, 5.77% 6,700
--------------
594,600
--------------
Total Commercial Paper 121,270,596
UNITED STATES GOVERNMENT ISSUES 0.1%*
United States Treasury Bills:
$290,000 Due 7/20/95 289,318
290,000 Due 7/27/95 288,904
10,000 Due 8/10/95 9,944
60,000 Due 9/21/95 59,280
--------------
647,446
--------------
Total Cash Equivalents (Cost $121,917,953) 121,918,042
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $932,624,815) 99.8%* 1,087,738,710
Other Assets and Liabilities, Net 0.2%* 2,024,497
--------------
NET ASSETS 100.0%* $1,089,763,207
==============
</TABLE>
STRONG GROWTH FUND
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
---------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 98.0%*
DOMESTIC STOCKS 90.7%*
AIRLINE 1.3%*
75,000 Southwest Airlines Company $ 1,790,625
100,000 ValuJet Airlines, Inc. + 3,287,500
-----------
5,078,125
AUTO & TRUCK PARTS 1.3%*
50,000 Exide Corporation 2,150,000
75,000 Modine Manufacturing Company 2,756,250
-----------
4,906,250
BANK - MONEY CENTER 0.9%*
60,000 Citicorp 3,472,500
BANK - REGIONAL 0.7%*
65,000 First Bank System, Inc. 2,665,000
BEVERAGE 2.3%*
65,000 The Coca-Cola Company 4,143,750
100,000 PepsiCo, Inc. 4,562,500
-----------
8,706,250
BROKERAGE & INVESTMENT MANAGEMENT 0.5%*
44,000 The Charles Schwab Corporation 1,908,500
COMMERCIAL SERVICE 0.9%*
70,000 ABR Information Services, Inc. + 2,065,000
50,000 ITI Technologies, Inc. + 1,187,500
-----------
3,252,500
COMPUTER - PERIPHERAL EQUIPMENT 1.3%*
142,000 Boca Research, Inc. + 3,834,000
10,000 U.S. Robotics, Inc. + 1,090,000
-----------
4,924,000
COMPUTER - PERSONAL & WORKSTATION 1.2%*
62,000 Hewlett-Packard Company 4,619,000
COMPUTER SERVICE 3.9%*
80,000 Datalogix International, Inc. + 1,950,000
55,000 First Financial Management Corporation 4,702,500
86,000 Fiserv, Inc. + 2,418,750
245,000 National Data Corporation 5,665,625
-----------
14,736,875
</TABLE>
See notes to financial statements.
16
<PAGE> 19
STRONG GROWTH FUND (continued)
<TABLE>
<CAPTION>
Shares or Value
Principal Amount (Note 2)
-------------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER SOFTWARE 9.0%*
55,000 Ascend Communications, Inc. + $ 2,777,500
19,000 Broderbund Software, Inc. + 1,211,250
57,000 Cisco Systems, Inc. + 2,882,063
60,000 Epic Design Technology, Inc. + 2,130,000
120,000 Informix Corporation + 3,045,000
25,000 Inso Corporation + 1,493,750
135,000 McAfee Associates, Inc. + 4,092,187
30,000 Microsoft Corporation + 2,711,250
75,000 S3, Inc. + 2,700,000
75,000 SoftKey International, Inc. + 2,390,625
77,400 Spyglass, Inc. + 2,215,575
50,000 3Com Corporation + 3,350,000
60,000 Zebra Technologies Corporation + 3,195,000
-----------
34,194,200
COSMETIC & PERSONAL CARE 1.7%*
60,000 General Nutrition Companies, Inc. + 2,107,500
93,200 The Gillette Company 4,159,050
-----------
6,266,550
DIVERSIFIED OPERATIONS 1.3%*
60,000 Alco Standard Corporation 4,792,500
ELECTRONIC PRODUCTS - MISCELLANEOUS 0.3%*
135,000 Datametrics Corporation + 1,274,062
ELECTRONICS - SEMICONDUCTOR/COMPONENT 7.8%*
50,000 Altera Corporation 2,162,500
80,000 Atmel Corporation + 4,430,000
45,000 Cypress Semiconductor, Inc. + 1,822,500
115,000 FSI International, Inc. + 2,680,937
85,000 Intel Corporation 5,381,563
51,300 Kulicke & Soffa Industries, Inc. + 3,401,831
35,000 Micron Technology, Inc. 1,920,625
35,000 Motorola, Inc. 2,349,375
100,000 VLSI Technology, Inc. + 3,012,500
25,000 Xilinx, Inc. + 2,350,000
-----------
29,511,831
FINANCE - MISCELLANEOUS 2.8%*
50,000 Advanta Corporation Class A 2,084,375
25,000 Concord EFS, Inc. + 668,750
65,000 Dean Witter, Discover & Company 3,055,000
75,000 MBNA Corporation 2,531,250
100,000 Medaphis Corporation + 2,175,000
-----------
10,514,375
HEALTHCARE - BIOMEDICAL/GENETIC 1.1%*
50,000 Biogen, Inc. + 2,225,000
100,000 Gilead Sciences, Inc. + 1,762,500
-----------
3,987,500
HEALTHCARE - DRUG/DIVERSIFIED 5.5%*
100,000 Abbott Laboratories 4,050,000
85,000 Biovail Corporation International + 1,583,125
115,000 Circa Pharmaceuticals, Inc. + 3,665,625
60,000 Johnson & Johnson 4,057,500
65,000 Merck & Company, Inc. 3,185,000
45,000 Pfizer, Inc. 4,156,875
-----------
20,698,125
HEALTHCARE - INSTRUMENTATION 1.2%*
60,000 Medtronic, Inc. 4,627,500
HEALTHCARE - MEDICAL SUPPLY 1.3%*
173,000 Quest Medical, Inc. + 2,097,625
70,000 Sybron International Corporation + 2,791,250
-----------
4,888,875
HEALTHCARE - PATIENT CARE 1.3%*
46,200 Apria Healthcare Group + 1,305,150
70,000 Phy Cor, Inc. + 2,458,750
40,000 Vencor, Inc. + 1,260,000
-----------
5,023,900
HEALTHCARE - PRODUCT 2.1%*
30,000 Arrow International, Inc. 1,267,500
125,000 Boston Scientific Corporation + 3,984,375
116,000 Guidant Corporation + 2,784,000
-----------
8,035,875
HOUSING RELATED 0.7%*
90,000 Danaher Corporation 2,722,500
INSURANCE - MULTI-LINE 1.4%*
110,000 MGIC Investment Corporation 5,156,250
INSURANCE - PROPERTY & CASUALTY 2.1%*
82,000 The PMI Group, Inc. 3,556,750
125,000 Vesta Insurance Group, Inc. 4,296,875
-----------
7,853,625
LEISURE SERVICE 1.2%*
100,000 Marriott International, Inc. 3,587,500
66,000 Studio Plus Hotels, Inc. + 1,105,500
-----------
4,693,000
MACHINERY - MISCELLANEOUS 1.0%*
135,000 Brooks Automation, Inc. + 2,396,250
65,000 3D Systems, Inc. + 1,202,500
-----------
3,598,750
MEDIA - RADIO/TV 0.7%*
75,000 LIN Television Corporation + 2,521,875
METAL PRODUCTS & FABRICATION 0.6%*
130,000 NN Ball & Roller, Inc. 2,307,500
MORTGAGE & RELATED SERVICE 2.8%*
61,000 CMAC Investment Corporation 2,645,875
130,000 The Foothill Group, Inc. 3,315,000
105,000 Green Tree Financial Corporation 4,659,375
-----------
10,620,250
OFFICE AUTOMATION 1.4%*
244,500 Corporate Express, Inc. + 5,226,188
OIL - NORTH AMERICAN EXPLORATION
& PRODUCTION 1.5%*
75,000 Apache Corporation 2,053,125
160,000 Barrett Resources Corporation + 3,720,000
-----------
5,773,125
OIL WELL EQUIPMENT & SERVICE 0.5%*
231,000 Oceaneering International, Inc. + 2,050,125
PERSONAL & COMMERCIAL LENDING 0.9%*
75,000 First USA, Inc. 3,328,125
</TABLE>
17
<PAGE> 20
SCHEDULE OF INVESTMENTS IN SECURITIES (Continued) June 30,1995 (Unaudited)
STRONG GROWTH FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
-------------------------------------------------------------------------------------
<S> <C> <C>
RAILROAD 0.6%*
50,000 Wisconsin Central Transportation Corporation + $ 2,450,000
RETAIL - DEPARTMENT STORE 1.0%*
80,000 Kohl's Corporation + 3,650,000
RETAIL - DISCOUNT & VARIETY 0.8%*
100,000 Dollar General Corporation 3,162,500
RETAIL - RESTAURANT 4.4%*
50,000 Apple South, Inc. 975,000
100,000 Boston Chicken, Inc. + 2,418,750
124,000 Landry's Seafood Restaurants, Inc. + 2,480,000
84,400 Lone Star Steakhouse & Saloon, Inc. + 2,558,375
110,000 McDonald's Corporation 4,303,750
105,000 Starbucks Corporation + 3,740,625
------------
16,476,500
RETAIL - SPECIALTY 9.6%*
50,000 Baby Superstore, Inc. + 2,356,250
72,000 CUC International, Inc. + 3,024,000
145,000 The Circle K Corporation + 2,446,875
150,000 Circuit City Stores, Inc. + 4,743,750
60,000 Discount Auto Parts, Inc. + 1,522,500
90,000 Fastenal Company 2,458,125
50,000 The Gymboree Corporation + 1,453,125
125,000 Insight Enterprises, Inc. + 1,937,500
155,000 Just For Feet, Inc. + 6,180,625
105,000 The Mens Wearhouse, Inc. + 2,887,500
125,000 Staples, Inc. + 3,609,375
51,500 Sunglass Hut International, Inc. + 1,802,500
55,000 Viking Office Products, Inc. + 2,014,375
------------
36,436,500
SHOE & APPAREL MANUFACTURING 1.6%*
55,000 Nautica Enterprises, Inc. + 1,993,750
75,000 St. John Knits, Inc. 3,365,625
40,000 Wolverine World Wide, Inc. 830,000
------------
6,189,375
SOAP & CLEANING PREPARATION 0.6%*
30,000 The Procter & Gamble Company 2,156,250
TELECOMMUNICATION EQUIPMENT 4.6%*
140,000 ADC Telecommunications, Inc. + 5,005,000
125,000 Global Village Communication + 1,953,125
25,000 Qualcomm, Inc. + 864,063
45,000 StrataCom, Inc. + 2,193,750
150,000 Tellabs, Inc. + 7,218,750
------------
17,234,688
TELEPHONE 1.0%*
150,000 Cincinnati Bell, Inc. 3,787,500
TOBACCO 0.7%*
35,000 Philip Morris Companies, Inc. 2,603,125
TRANSPORTATION SERVICE 1.4%*
195,000 U.S. Delivery Systems, Inc. + 5,118,750
------------
Total Domestic Stocks 343,200,794
FOREIGN STOCKS 7.3%*
CANADA 1.0%*
OIL - NORTH AMERICAN EXPLORATION
& PRODUCTION
950,000 Gulf Canada Resources, Ltd. + 3,807,476
FINLAND 1.6%*
TELECOMMUNICATION EQUIPMENT
100,000 Nokia Corporation ADR (USD) 5,962,500
GERMANY 0.7%*
COMPUTER SOFTWARE
65,000 SAP AG ADS (USD) (Acquired 5/23/95;
Cost $2,373,800) (r) 2,730,000
IRELAND 0.6%*
COMPUTER SOFTWARE
50,000 CBT Group PLC ADR (USD) + 2,118,750
ISRAEL 1.0%*
HEALTHCARE - DRUG/DIVERSIFIED
100,000 Teva Pharmaceutical Industries, Ltd. ADR (USD) 3,750,000
NETHERLANDS 1.2%*
COMPUTER SOFTWARE
150,000 Baan Company N.V. ADR (USD) + 4,631,250
SWEDEN 0.5%*
TELECOMMUNICATION EQUIPMENT
100,000 Ericsson (LM) Telephone Company ADR (USD) 2,000,000
UNITED KINGDOM 0.7%*
OFFICE AUTOMATION
110,000 Danka Business Systems PLC ADR (USD) 2,660,625
------------
Total Foreign Stocks 27,660,601
------------
TOTAL COMMON STOCKS (COST $317,568,048) 370,861,395
CONVERTIBLE CORPORATE BONDS 0.4%*
DOMESTIC BONDS 0.3%*
$ 500,000 First Financial Management Corporation Senior
Convertible Debentures, 5.00%, Due 12/15/99 667,500
300,000 Medaphis Corporation Convertible Subordinated
Debentures, 6.50%, Due 1/01/00 (Acquired
4/08/94 - 4/29/94; Cost $411,750) (r) 468,375
------------
Total Domestic Bonds 1,135,875
FOREIGN BONDS 0.1%*
UNITED KINGDOM
500,000 Danka Business Systems PLC Convertible
Subordinated Notes, 6.75%, Due 4/01/02
(Acquired 3/06/95 - 5/17/95; Cost $514,375) (r) 525,000
------------
TOTAL CONVERTIBLE CORPORATE BONDS
(COST $1,355,082) 1,660,875
CASH EQUIVALENTS 2.5%*
COMMERCIAL PAPER 2.5%*
DISCOUNTED 2.4%*
4,400,000 Burlington Northern Railroad Company
Due 7/03/95 4,400,000
4,600,000 PaineWebber Group, Inc.
Due 7/03/95 4,600,000
------------
9,000,000
</TABLE>
See notes to financial statements.
18
<PAGE> 21
STRONG GROWTH FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
------------------------------------------------------------------------------------------
<S> <C> <C>
INTEREST BEARING, DUE UPON DEMAND 0.1%*
$ 98,400 General Mills, Inc., 5.72% $ 98,400
25,000 Pitney Bowes Credit Corporation, 5.73 % 25,000
370,600 Southwestern Bell Telephone Company, 5.71% 370,600
------------
494,000
------------
Total Cash Equivalents (Cost $9,494,000) 9,494,000
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $328,417,130) 100.9%* 382,016,270
Other Assets and Liabilities, Net (0.9%)* (3,770,062)
------------
NET ASSETS 100.0%* $378,246,208
============
</TABLE>
STRONG COMMON STOCK FUND
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 89.6%*
DOMESTIC STOCKS 78.0%*
AEROSPACE & DEFENSE 1.4%*
370,000 Precision Castparts Corporation $12,996,250
AGRICULTURAL OPERATIONS 1.1%*
242,100 Pioneer Hi-Bred International, Inc. 10,168,200
AUTO & TRUCK PARTS 0.5%*
185,600 Automotive Industries Holding, Inc. + 5,034,400
BANK - REGIONAL 1.0%*
290,000 Old Kent Financial Corporation 9,860,000
BANK - SUPER REGIONAL 1.2%*
395,000 Norwest Corporation 11,356,250
BROKERAGE & INVESTMENT MANAGEMENT 1.3%*
585,000 Apartment Investment and Management Company 11,846,250
CHEMICAL 0.3%*
160,000 Freeport-McMoRan, Inc. 2,820,000
COMMERCIAL SERVICE 4.9%*
355,000 CCH, Inc. Class A 7,987,500
188,000 CCH, Inc. Class B 4,089,000
280,000 Diebold, Inc. 12,180,000
456,000 Ecolab, Inc. 11,172,000
860,000 Rollins Truck Leasing Corporation 9,245,000
-----------
44,673,500
COMPUTER - PERIPHERAL EQUIPMENT 2.0%*
470,000 Quantum Corporation + 10,751,250
185,000 Seagate Technology, Inc. + 7,261,250
-----------
18,012,500
COMPUTER - PERSONAL & WORKSTATION 0.9%*
881,100 Data General Corporation + 8,480,588
ELECTRONIC PART DISTRIBUTION 1.5%*
400,000 Marshall Industries + 13,400,000
ELECTRONIC PRODUCTS - MISCELLANEOUS 0.5%*
240,000 Nichols Research Corporation + 4,110,000
ELECTRONICS - SEMICONDUCTOR/COMPONENT 5.0%*
260,000 Cirrus Logic, Inc. + 16,298,750
212,000 Intel Corporation 13,422,250
81,800 Littelfuse, Inc. + 2,561,362
100,000 Texas Instruments, Inc. 13,387,500
-----------
45,669,862
FOOD 2.4%*
360,000 Dole Food Company, Inc. 10,485,000
410,000 Nabisco Holdings Corporation 11,070,000
-----------
21,555,000
HEALTHCARE - BIOMEDICAL/GENETIC 0.9%*
563,000 Centocor, Inc. + 8,057,937
HEALTHCARE - INSTRUMENTATION 1.0%*
318,100 Beckman Instruments, Inc. 8,867,038
HEALTHCARE - MEDICAL SUPPLY 2.3%*
235,000 Invacare Corporation 9,752,500
280,000 Sybron International Corporation + 11,165,000
-----------
20,917,500
HEALTHCARE - PATIENT CARE 2.5%*
515,000 FHP International Corporation + 11,845,000
735,000 Tenet Healthcare Corporation + 10,565,625
-----------
22,410,625
HEALTHCARE - PRODUCT 2.0%*
400,000 Allergan, Inc. 10,850,000
315,000 Guidant Corporation + 7,560,000
-----------
18,410,000
HOUSEHOLD APPLIANCE & FURNISHINGS 1.1%*
478,000 Libbey, Inc. 9,918,500
HOUSING RELATED 0.9%*
441,400 TJ International 8,276,250
MEDIA - PUBLISHING 1.2%*
348,700 A.H. Belo Corporation 10,678,938
MEDIA - RADIO/TV 6.2%*
127,000 Capital Cities/ABC, Inc. 13,716,000
702,552 Cox Communications, Inc. Class A + 13,611,945
412,000 International Family Entertainment, Inc. Class B + 6,489,000
505,000 Tele-Communications, Inc. Class A + 11,835,937
535,000 Turner Broadcasting System, Inc. Class B 10,967,500
-----------
56,620,382
METALS & MINING 1.8%*
181,400 Asarco, Inc. 5,532,700
660,000 Magma Copper Company + 10,725,000
-----------
16,257,700
NATURAL GAS DISTRIBUTION 1.0%*
385,000 Enron Global Power & Pipelines L.L.C. 9,143,750
OIL - NORTH AMERICAN EXPLORATION &
PRODUCTION 4.5%*
348,000 Apache Corporation 9,526,500
525,000 Devon Energy Corporation 11,287,500
695,000 H S Resources, Inc. + 9,730,000
490,000 Union Texas Petroleum Holdings, Inc. 10,351,250
-----------
40,895,250
</TABLE>
19
<PAGE> 22
SCHEDULE OF INVESTMENTS IN SECURITIES JUNE 30, 1995 (Unaudited)
STRONG COMMON STOCK FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
-------------------------------------------------------------------------------------
<S> <C>
OIL - NORTH AMERICAN INTEGRATED 1.1%*
310,000 Phillips Petroleum Company $ 10,346,250
OIL WELL EQUIPMENT & SERVICE 3.4%*
677,000 Offshore Logistics, Inc. + 9,478,000
360,000 Sonat Offshore Drilling, Inc. 10,350,000
448,000 Tidewater, Inc. 11,256,000
-------------
31,084,000
PRECIOUS METAL/GEM/STONE 2.1%*
860,000 Battle Mountain Gold Company 8,277,500
267,000 Newmont Mining Company 11,180,629
-------------
19,458,129
RAILROAD 1.2%*
230,000 Wisconsin Central Transportation Corporation + 11,270,000
RETAIL - DEPARTMENT STORE 2.4%*
418,000 Dillard Department Stores, Inc. Class A 12,278,750
195,000 J.C. Penney Company, Inc. 9,360,000
-------------
21,638,750
RETAIL - DISCOUNT & VARIETY 0.4%*
126,500 Toys 'R' Us, Inc. + 3,700,125
RETAIL - FOOD CHAIN 3.5%*
371,000 American Stores Company 10,434,375
430,000 The Kroger Company + 11,556,250
494,000 The Vons Companies, Inc. + 9,941,750
-------------
31,932,375
RETAIL - RESTAURANT 1.1%*
406,200 IHOP Corporation + 10,459,650
RETAIL - SPECIALTY 5.0%*
262,000 The Gap, Inc. 9,137,250
347,000 Jones Apparel Group, Inc. + 10,366,625
306,000 Melville Corporation 10,480,500
920,000 Musicland Stores Corporation + 9,430,000
330,000 Software Spectrum, Inc. + 6,847,500
-------------
46,261,875
SAVINGS & LOAN 1.1%*
475,000 Washington Federal Savings & Loan Association 10,450,000
TELECOMMUNICATION EQUIPMENT 1.3%*
455,000 Belden, Inc. 12,285,000
TELECOMMUNICATION SERVICE 6.0%*
425,000 AirTouch Communications + 12,112,500
82,000 LIN Broadcasting Corporation + 10,373,000
350,600 Paging Network, Inc. + 12,008,050
300,000 Sprint Corporation 10,087,500
345,000 United States Cellular Corporation + 10,436,250
-------------
55,017,300
-------------
Total Domestic Stocks 714,340,124
FOREIGN STOCKS 11.6%*
AUSTRALIA 0.4%*
FINANCE - MISCELLANEOUS 0.3%*
205,000 Lend Lease Corporation 2,614,040
LEISURE SERVICE 0.1%*
3,200,000 Accor Asia Pacific Company, Ltd. 1,497,830
-------------
4,111,870
BERMUDA 2.7%*
INSURANCE - DIVERSIFIED 1.5%*
115,000 Tempest Reinsurance Company, Ltd.
(Acquired 9/15/93; Cost $11,500,000) (r) 14,054,150
INSURANCE - PROPERTY & CASUALTY 1.2%*
413,200 Partners RE Holdings, Ltd. ADR (USD) 10,794,850
-------------
24,849,000
HONG KONG 1.1%*
AIRLINE 0.3%*
2,000,000 Cathay Pacific Airways, Ltd. 2,920,953
BANK - MONEY CENTER 0.6%*
42,000 HSBC Holdings PLC ADR (USD) 5,387,390
REAL ESTATE 0.2%*
1,000,000 Hysan Development Company, Ltd. 2,287,649
-------------
10,595,992
JAPAN 0.1%*
BROKERAGE & INVESTMENT MANAGEMENT
25,000 Nomura Securities Company, Ltd. 437,352
NEW ZEALAND 1.0%*
AIRLINE 0.1%*
200,000 Air New Zealand, Ltd. Class B 581,856
CONGLOMERATE 0.2%*
2,850,000 Brierley Investments, Ltd. 2,153,870
FOOD 0.3%*
1,375,000 Lion Nathan, Ltd. 2,722,016
PAPER & FOREST PRODUCTS 0.4%*
1,700,000 Carter Holt Harvey, Ltd. 4,161,274
-------------
9,619,016
SINGAPORE 0.5%*
CONGLOMERATE 0.2%*
285,000 Jardine Matheson Holdings, Ltd. (USD) 2,094,750
SHIPPING 0.3%*
325,000 Jurong Shipyards, Ltd. 2,327,247
-------------
4,421,997
SOUTH AFRICA 1.0%*
PRECIOUS METAL/GEM/STONE
360,000 De Beers Consolidated Mines, Ltd. ADR (USD) 9,315,000
SWEDEN 1.3%*
CONGLOMERATE 0.9%*
98,000 Asea AB 8,464,336
HEALTHCARE - MEDICAL SUPPLY 0.4%*
154,000 Arjo AB 1,357,688
90,000 Arjo AB ADR (USD) (Acquired 11/05/93 -
5/09/95; Cost $2,508,250) (r) 1,586,250
-------------
2,943,938
METALS & MINING 0.0%*
10,000 Terra Mining AB 183,211
-------------
11,591,485
</TABLE>
See notes to financial statements.
20
<PAGE> 23
STRONG COMMON STOCK FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
-------------------------------------------------------------------------------------
<S> <C> <C>
SWITZERLAND 1.2%*
FOOD
214,000 Nestle SA Sponsored ADR (USD) $ 11,135,426
TAIWAN 0.3%*
CLOSED-END FUND
1,453,000 Core Pacific Pioneer Fund 455,715
1,224,000 Jardine Fleming Fund 476,311
1,233,000 Kwang Hua Fortune Fund 460,716
1,121,000 NITC Fu-yuan Fund 475,294
1,193,000 Yuan Ta Duo Yuan Fund 482,725
-------------
2,350,761
UNITED KINGDOM 2.0%*
MEDIA - RADIO/TV
551,700 Bell Cablemedia PLC ADR (USD) + 10,482,300
400,000 Nynex Cable Comms Group ADR (USD) + 8,100,000
-------------
18,582,300
-------------
Total Foreign Stocks 107,010,199
-------------
TOTAL COMMON STOCKS (COST $681,356,366) 821,350,323
CASH EQUIVALENTS 9.9%*
COMMERCIAL PAPER 9.8%*
DISCOUNTED 9.7%*
$ 7,900,000 Burlington Northern Railroad Company
Due 7/03/95 7,900,000
6,200,000 Countrywide Funding Corporation
Due 7/07/95 6,195,846
18,500,000 Hawaiian Electric Company
Due 7/10/95 18,478,237
12,800,000 Olin Corporation
Due 7/07/95 12,791,396
21,000,000 Premark International, Inc.
Due 7/05/95 20,992,942
14,000,000 Ryder System, Inc.
Due 7/11/95 13,981,022
8,500,000 Sonat, Inc.
Due 7/11/95 8,488,534
-------------
88,827,977
INTEREST BEARING, DUE UPON DEMAND 0.1%*
205,500 Eli Lilly & Company, 5.55% 205,500
361,600 General Mills, Inc., 5.71% 361,600
172,400 Pitney Bowes Credit Corporation, 5.73% 172,400
201,400 Southwestern Bell Telephone Company, 5.71% 201,400
13,200 Wisconsin Electric Power Company, 5.77% 13,200
-------------
954,100
-------------
Total Commercial Paper 89,782,077
UNITED STATES GOVERNMENT ISSUES 0.1%*
United States Treasury Bills:
635,000 Due 7/06/95 634,714
75,000 Due 8/10/95 74,580
345,000 Due 9/21/95 340,868
-------------
1,050,162
-------------
Total Cash Equivalents (Cost $90,832,223) 90,832,239
-------------
TOTAL INVESTMENTS IN SECURITIES
(COST $772,188,589) 99.5%* 912,182,562
Other Assets and Liabilities, Net 0.5%* 4,140,184
-------------
NET ASSETS 100.0%* $916,322,746
=============
</TABLE>
STRONG DISCOVERY FUND
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
-------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 90.7%*
DOMESTIC STOCKS 81.5%*
AIRLINE 0.8%*
135,800 America West Airlines, Inc. Class B + $ 1,646,575
57,000 Southwest Airlines Company 1,360,875
13,100 ValuJet Airlines, Inc. + 430,662
-------
3,438,112
AUTO & TRUCK PARTS 1.7%*
40,500 Bandag, Inc. Class A 2,318,625
20,500 Exide Corporation 881,500
91,100 The Goodyear Tire & Rubber Company 3,757,875
64,200 Thompson PBE, Inc. + 1,059,300
---------
8,017,300
AUTOMOBILE 3.5%*
170,300 Chrysler Corporation 8,153,113
140,000 Ford Motor Company 4,165,000
86,700 General Motors Corporation 4,064,062
---------
16,382,175
BANK - MONEY CENTER 0.2%*
17,500 Citicorp 1,012,812
BROKERAGE & INVESTMENT MANAGEMENT 2.0%*
24,100 Associated Estates Realty Corporation 509,112
11,900 Equity Inns, Inc. 127,925
23,500 Franklin Resources, Inc. 1,045,750
18,000 Merry Land & Investment Company, Inc. 366,750
27,150 The Quick & Reilly Group, Inc. 984,187
10,500 RFS Hotel Investors, Inc. 160,125
91,600 ROC Communities, Inc. 2,026,650
97,000 Salomon, Inc. 3,892,125
---------
9,112,624
CHEMICAL - SPECIALTY 1.1%*
85,500 W.R. Grace & Company 5,247,562
COMMERCIAL SERVICE 3.3%*
104,600 Career Horizons Corporation + 1,987,400
200,000 Consolidated Graphics, Inc. + 2,750,000
20,000 Diebold, Inc. 870,000
270,900 Education Alternatives, Inc. + 3,318,525
36,600 Insurance Auto Auctions, Inc. + 1,070,550
144,000 Sensormatic Electronics Corporation 5,112,000
---------
15,108,475
COMPUTER - MAINFRAME 0.7%*
5,000 International Business Machines Corporation 480,000
249,200 Unisys Corporation + 2,710,050
---------
3,190,050
COMPUTER - PERIPHERAL EQUIPMENT 1.6%*
41,500 American Power Conversion + 949,312
36,700 Digi International, Inc. + 834,925
85,000 EMC Communications Corporation + 2,061,250
11,600 FileNet Corporation + 468,350
41,800 Komag, Inc. + 2,173,600
9,600 U.S. Robotics, Inc. + 1,046,400
---------
7,533,837
COMPUTER - PERSONAL & WORKSTATION 3.0%*
174,000 Apple Computer, Inc. 8,080,125
111,000 Compaq Computer Corporation + 5,036,625
10,900 Sun Microsystems, Inc. + 528,650
-------
13,645,400
</TABLE>
See notes to financial statements
21
<PAGE> 24
SCHEDULE OF INVESTMENTS IN SECURITIES (continued) June 30, 1995 (Unaudited)
STRONG DISCOVERY FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
---------------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER SERVICE 1.6%*
12,800 Cycare Systems, Inc. + $ 348,800
119,000 Datalogix International, Inc. + 2,900,625
177,500 Pyxis Corporation + 4,015,937
-------------
7,265,362
COMPUTER SOFTWARE 13.1%*
161,900 Acclaim Entertainment, Inc. + 2,985,035
37,200 Adobe Systems, Inc. 2,157,600
11,000 Ascend Communications, Inc. + 555,500
20,000 Aspen Technology, Inc. + 510,000
42,000 Autodesk, Inc. 1,806,000
33,200 BMC Software, Inc. + 2,564,700
97,200 Cabletron Systems, Inc. + 5,175,900
85,000 Computer Associates International, Inc. 5,758,750
153,100 Computer Network Technology Corporation + 1,569,275
47,600 Concentra Corporation + 464,100
59,800 Electronic Arts, Inc. + 1,622,075
19,200 Expert Software, Inc. + 355,200
45,500 Hyperion Software Corporation + 2,058,875
170,000 Informix Corporation + 4,313,750
436,400 McAfee Associates, Inc. + 13,228,375
25,000 Medic Computer Systems, Inc. + 962,500
23,300 Microsoft Corporation + 2,105,738
116,500 NetManage, Inc. + 1,980,500
265,100 Novell, Inc. + 5,285,431
38,900 Platinum Technology, Inc. + 705,062
276,300 Saber Software Corporation + 2,400,356
32,300 Spyglass, Inc. + 924,588
6,200 Sterling Software, Inc. + 238,700
25,000 Symantec Corporation + 721,875
-------------
60,449,885
COMPUTER SYSTEMS 0.9%*
90,000 Oracle Systems Corporation + 3,476,250
29,100 System Software Associates, Inc. 582,000
-------------
4,058,250
CONSUMER - MISCELLANEOUS 0.2%*
45,000 Equity Corporation International + 911,250
DIVERSIFIED OPERATIONS 1.3%*
31,700 Alco Standard Corporation 2,532,038
87,500 Jason, Inc. (Acquired 1/21/94; Cost $770,000) (r) + 750,750
12,700 Lockheed Martin Corporation 801,687
35,800 Tyco International, Ltd. 1,933,200
-------------
6,017,675
ELECTRONIC PART DISTRIBUTION 0.2%*
9,000 Kent Electronics Corporation + 340,875
64,800 Richey Electronics, Inc. + 388,800
-------------
729,675
ELECTRONIC PRODUCTS - MISCELLANEOUS 0.4%*
87,000 Teltrend, Inc. 1,718,250
ELECTRONICS - SEMICONDUCTOR/COMPONENT 7.8%*
11,200 Advanced Micro Devices, Inc. + 407,400
37,900 Altera Corporation 1,639,175
20,100 Applied Materials, Inc. + 1,741,162
83,000 Atmel Corporation + 4,596,125
35,900 The Cherry Corporation + 475,675
87,200 Cypress Semiconductor, Inc. + 3,531,600
14,400 Dallas Semiconductor Corporation 295,200
9,000 Integrated Device Technology, Inc. + 416,250
ELECTRONICS - SEMICONDUCTOR/COMPONENT
7.8%* (CONT.)
9,800 Integrated Silicon Solution, Inc. + 512,050
47,100 Intel Corporation 2,982,019
6,100 Kulicke & Soffa Industries, Inc. + 404,506
9,800 Linear Technology Corporation 646,800
22,000 LSI Logic Corporation + 860,750
65,500 Maxim Integrated Products, Inc. + 3,340,500
47,000 Micron Technology, Inc. 2,579,125
90,000 Motorola, Inc. 6,041,250
7,500 Sierra Semiconductor Corporation + 238,125
10,700 Texas Instruments, Inc. 1,432,463
95,000 VLSI Technology, Inc. + 2,861,875
10,400 Xilinx, Inc. + 977,600
-------------
35,979,650
FINANCE - MISCELLANEOUS 1.3%*
42,600 Advanta Corporation Class B 1,608,150
19,400 American Express Company 681,425
27,700 Dean Witter, Discover & Company 1,301,900
34,000 MBNA Corporation 1,147,500
68,100 Mercury Finance Company 1,310,925
-------------
6,049,900
FOOD 0.2%*
24,000 Lancaster Colony Corporation 858,000
HEALTHCARE - DRUG/DIVERSIFIED 0.5%*
110,700 Barr Laboratories, Inc. + 2,393,887
HEALTHCARE - MEDICAL SUPPLY 2.3%*
24,700 Bausch & Lomb, Inc. 1,025,050
35,000 Dentsply International, Inc. 1,260,000
146,780 Laboratory Corporation of America Holdings + 1,944,835
30,414 Laboratory Corporation of America Holdings
Warrants, Expire 4/28/00 + 45,621
30,500 McKesson Corporation 1,425,875
140,000 Omnicare, Inc. 3,797,500
20,200 Patterson Dental Company + 479,750
15,600 Sybron International Corporation + 622,050
-------------
10,600,681
HEALTHCARE - PATIENT CARE 3.1%*
117,100 American Oncology Resources, Inc. + 3,249,525
46,000 Apria Healthcare Group + 1,299,500
9,000 Charter Medical Corporation + 146,250
48,400 FPA Medical Management, Inc. + 484,000
12,800 Manor Care, Inc. 372,800
76,200 Medpartners, Inc. + 1,466,850
132,100 Phy Cor, Inc. + 4,640,012
87,500 Physician Reliance Network, Inc. + 1,706,250
107,900 Professional Sports Care Management, Inc. + 1,099,231
-------------
14,464,418
HOUSEHOLD APPLIANCE & FURNISHINGS 0.3%*
70,900 SHAW Industries, Inc. 1,205,300
HOUSING RELATED 0.6%*
72,300 The Black & Decker Corporation 2,232,262
14,100 Danaher Corporation 426,525
-------------
2,658,787
INSURANCE - MULTI-LINE 0.0%*
2,500 MGIC Investment Corporation 117,188
</TABLE>
See notes to financial statements.
22
<PAGE> 25
STRONG DISCOVERY FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
---------------------------------------------------------------------------------------
<S> <C> <C>
INSURANCE - PROPERTY & CASUALTY 0.3%*
45,000 Vesta Insurance Group, Inc. $ 1,546,875
LEISURE PRODUCT 3.2%*
67,100 Custom Chrome, Inc. + 1,342,000
550,200 Harley-Davidson, Inc. 13,411,125
----------
14,753,125
LEISURE SERVICE 1.3%*
24,600 Bally Entertainment Corporation + 301,350
48,400 GTECH Holdings Corporation + 1,415,700
112,800 Promus Companies, Inc. + 4,399,200
----------
6,116,250
MACHINE TOOL 0.9%*
148,850 Applied Power, Inc. 4,298,044
MACHINERY - MISCELLANEOUS 0.2%*
25,100 PRI Automation, Inc. + 822,025
MANUFACTURING 0.0%*
5,000 Matthews International Corporation Class A 93,750
MEDIA - PUBLISHING 0.5%*
60,100 Time Warner, Inc. 2,471,613
MEDIA - RADIO/TV 1.3%*
57,000 Comcast Corporation Class A 1,058,062
105,181 Evergreen Media Corporation Class A + 2,734,706
21,300 SFX Broadcasting, Inc. + 569,775
60,900 Tele-Communications, Inc. Class A + 1,427,344
----------
5,789,887
MORTGAGE & RELATED SERVICE 1.8%*
246,600 Countrywide Credit Industries, Inc. 5,178,600
23,700 Finova Group, Inc. 829,500
25,000 Green Tree Financial Corporation 1,109,375
18,300 North American Mortgage Company 423,187
25,100 Pulte Corporation 702,800
----------
8,243,462
OFFICE AUTOMATION 2.2%*
110,100 Corporate Express, Inc. + 2,353,387
153,850 Nu-Kote Holding, Inc. + 4,884,738
12,800 Pitney Bowes, Inc. 491,200
20,700 Xerox Corporation 2,427,075
----------
10,156,400
OIL - NORTH AMERICAN EXPLORATION &
PRODUCTION 0.8%*
24,200 Cross Timber Oil Company 384,175
263,000 Flores & Rucks, Inc. + 3,221,750
----------
3,605,925
PAPER & FOREST PRODUCTS 0.0%*
8,800 Specialty Paperboard, Inc. + 116,600
PERSONAL & COMMERCIAL LENDING 0.5%*
56,800 First USA, Inc. 2,520,500
POLLUTION CONTROL 0.0%*
5,300 Asyst Technologies, Inc. + 196,762
PRECIOUS METAL/GEM/STONE 1.6%*
194,700 Barrick Gold Corporation 4,916,175
36,000 Newmont Mining Company 1,507,500
71,700 Santa Fe Pacific Gold Corporation 869,363
----------
7,293,038
RAILROAD 1.0%*
9,200 Kansas City Southern Industries, Inc. 342,700
82,703 Santa Fe Pacific Corporation 2,108,927
46,100 Wisconsin Central Transportation Corporation + 2,258,900
----------
4,710,527
RETAIL - DEPARTMENT STORE 1.0%*
33,900 Dillard Department Stores, Inc. Class A 995,812
109,600 Federated Department Stores, Inc. + 2,822,200
12,300 May Department Stores Company 511,988
2,600 Mercantile Stores Company, Inc. 120,900
----------
4,450,900
RETAIL - DISCOUNT & VARIETY 0.8%*
25,300 Consolidated Stores Corporation + 528,138
195,300 Price/Costco, Inc. + 3,173,625
----------
3,701,763
RETAIL - RESTAURANT 1.1%*
18,000 Apple South, Inc. 351,00
79,500 DF & R Restaurants, Inc. + 1,758,937
62,000 Quality Dining, Inc. + 1,007,500
99,100 Wendy's International, Inc. 1,771,413
----------
4,888,850
RETAIL - SPECIALTY 5.6%*
114,700 CUC International, Inc. + 4,817,400
65,000 Friedman's, Inc. Class A + 1,235,000
14,000 The Gap, Inc. 488,250
124,600 The Home Depot, Inc. 5,061,875
11,300 Just For Feet, Inc. + 450,587
115,000 The Limited, Inc. 2,530,000
9,000 Michaels Stores, Inc. + 191,250
161,000 Movie Gallery, Inc. + 5,645,063
61,100 Neostar Retail Group, Inc. + 947,050
125,000 Office Depot, Inc. + 3,515,625
10,000 OfficeMax, Inc. + 278,750
4,000 Tandy Corporation 207,500
13,800 Viking Office Products, Inc. + 505,425
----------
25,873,775
TELECOMMUNICATION EQUIPMENT 5.2%*
30,000 ADC Telecommunications, Inc. + 1,072,500
40,000 The Allen Group, Inc. 1,185,000
99,900 Boston Technology, Inc. + 1,860,638
51,900 C-Cor Electronics, Inc. + 1,427,250
145,900 Comverse Technology, Inc. + 2,589,725
10,300 DSC Communications Corporation + 478,950
80,000 General Instrument Corporation 3,070,000
29,000 Global Village Communication + 453,125
53,500 Newbridge Networks Corporation + 1,885,875
347,500 Scientific-Atlanta, Inc. 7,645,000
12,300 Spectrian Corporation + 488,925
40,000 Tellabs, Inc. + 1,925,000
----------
24,081,988
</TABLE>
See notes to financial statements.
23
<PAGE> 26
SCHEDULE OF INVESTMENTS IN SECURITIES (continued) June 30, 1995 (Unaudited)
STRONG DISCOVERY FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
-------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATION SERVICE 0.2%*
9,900 Comsat Corporation $ 194,287
36,600 EqualNet Holding Corporation + 549,000
5,700 Sprint Corporation 191,663
--------------
934,950
TRANSPORTATION SERVICE 0.2%*
14,100 Fritz Companies, Inc. + 827,494
TRUCKING 0.1%*
28,000 Knight Transportation, Inc. + 378,000
--------------
Total Domestic Stocks 376,039,008
FOREIGN STOCKS 9.2%*
CANADA 1.1%*
CONSUMER - MISCELLANEOUS 0.2%*
27,500 The Loewen Group, Inc. (USD) 979,688
LEISURE SERVICE 0.1%*
46,600 CINAR Films, Inc. (USD) + 457,262
PRECIOUS METAL/GEM/STONE 0.8%*
141,000 Placer Dome, Inc. (USD) 3,683,625
--------------
5,120,575
FINLAND 1.0%*
TELECOMMUNICATION EQUIPMENT
76,675 Nokia Corporation ADR (USD) 4,571,747
HONG KONG 3.4%*
BANK - MONEY CENTER 1.0%*
36,400 HSBC Holdings PLC ADR (USD) 4,669,072
CONGLOMERATE 1.3%*
836,000 Citic Pacific, Ltd. 2,101,561
172,000 Guangdong Investment, Ltd. 93,923
56,500 Hutchison Whampoa, Ltd. ADR (USD) 1,365,486
62,000 Swire Pacific, Ltd. 'A' 472,781
274,200 Swire Pacific, Ltd. ADR (USD) 2,090,802
--------------
6,124,553
ELECTRIC POWER 0.5%*
893,000 Consolidated Electric Power Asia, Ltd. 2,071,725
FINANCE - MISCELLANEOUS 0.0%*
42,500 Guoco Group, Ltd. 198,295
REAL ESTATE 0.4%*
153,000 Cheung Kong (Holdings), Ltd. 757,367
164,000 New World Development Company, Ltd. 545,805
57,900 Sun Hung Kai Properties, Ltd. 428,420
--------------
1,731,592
TELECOMMUNICATION SERVICE 0.2%*
262,000 Hong Kong Telecommunications, Ltd. 518,094
10,000 Hong Kong Telecommunications, Ltd. ADR (USD) 198,750
--------------
716,844
--------------
15,512,081
IRELAND 0.6%*
Computer Software 0.4%*
40,000 CBT Group PLC ADR (USD) + 1,695,000
HEALTHCARE - DRUG DIVERSIFIED 0.2%*
21,700 Elan Corporation, PLC ADR (USD) + 886,988
--------------
2,581,988
ISRAEL 0.5%*
Healthcare - Drug/Diversified
65,000 Teva Pharmaceutical Industries, Ltd. ADR (USD) 2,437,500
SWEDEN 0.1%*
Telecommunication Equipment
16,400 Ericsson (LM) Telephone Company ADR (USD) 328,000
THAILAND 0.3%*
Bank - Money Center
140,000 Bangkok Bank Public Company, Ltd. (Fgn Reg) 1,543,262
UNITED KINGDOM 2.2%*
Office Automation
427,500 Danka Business Systems PLC ADR (USD) 10,340,156
--------------
Total Foreign Stocks 42,435,309
--------------
TOTAL COMMON STOCKS (COST $384,244,627) 418,474,317
FOREIGN PREFERRED STOCK 4.4%*
GERMANY
16,150 SAP AG (Cost $16,591,027) 20,500,326
CASH EQUIVALENTS 3.6%*
COMMERCIAL PAPER 3.5%*
DISCOUNTED 3.4%*
$15,900,000 Paine Webber Group
Due 7/03/95 15,900,000
INTEREST BEARING, DUE UPON DEMAND 0.1%*
152,900 Eli Lilly & Company, 5.55% 152,900
94,400 Southwestern Bell Telephone Company, 5.71% 94,400
--------------
247,300
--------------
Total Commercial Paper 16,147,300
UNITED STATES GOVERNMENT ISSUES 0.1%*
400,000 United States Treasury Bills, Due 9/21/95 395,048
--------------
Total Cash Equivalents (Cost $16,542,473) 16,542,348
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $417,378,127) 98.7%* 455,516,991
Other Assets and Liabilities, Net 1.3%* 5,988,124
--------------
NET ASSETS 100.0%* $ 461,505,115
=============
<CAPTION>
STRONG INTERNATIONAL STOCK FUND
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
-------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 91.9%*
ARGENTINA 1.0%*
BEVERAGE - SOFT DRINK 0.4%*
34,500 Buenos Aires Embotelladora S.A. ADR (USD) + $ 866,812
OIL - INTERNATIONAL INTEGRATED 0.6%*
75,000 YPF Sociedad Anonima ADR (USD) 1,415,625
---------
2,282,437
AUSTRALIA 7.8%*
BEVERAGE - ALCOHOLIC 0.4%*
858,000 Foster's Brewing Group, Ltd. 762,280
</TABLE>
See notes to financial statements.
24
<PAGE> 27
STRONG INTERNATIONAL STOCK FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
-------------------------------------------------------------------------------------
<S> <C> <C>
BEVERAGE - SOFT DRINK 0.8%*
282,722 Coca-Cola Amatil, Ltd. $ 1,748,219
88,180 Coca-Cola Amatil, Ltd. Rights, Expire 7/26/95 + 106,546
-----------
1,854,765
ELECTRONIC PRODUCTS - MISCELLANEOUS 0.1%*
280,000 ERG Australia, Ltd. 286,574
FINANCE - MISCELLANEOUS 0.8%*
130,376 Lend Lease Corporation, Ltd. 1,666,113
FOOD 0.5%*
477,646 Burns, Philp & Company, Ltd. 998,092
LEISURE SERVICE 0.9%*
2,672,519 AAPC, Ltd. 1,253,666
765,000 Sydney Harbour Casino, Ltd. + 788,400
-----------
2,042,066
MEDIA - PUBLISHING 0.2%*
90,769 The News Corporation, Ltd. 507,081
METALS & MINING 2.3%*
190,740 The Broken Hill Proprietary Company, Ltd. 2,348,046
745,691 MIM Holdings, Ltd. 927,500
1,453,101 Normandy Mining, Ltd. 1,797,058
-----------
5,072,604
OIL - INTERNATIONAL INTEGRATED 1.8%*
7,671,000 Anzoil NL + 463,434
1,031,000 Novus Petroleum, Ltd. + 1,172,454
570,000 Woodside Petroleum, Ltd. 2,236,304
-----------
3,872,192
-----------
17,061,767
AUSTRIA 0.7%*
TRANSPORTATION SERVICE
28,000 Flughafen Wien AG 1,491,430
BRAZIL 0.8%*
STEEL 0.4%*
27,000 Cia Vale Do Rio Doce Sponsored ADR (USD) 1,019,250
TELECOMMUNICATION 0.4%*
24,370 Telecommunicacoes Brasileiras S.A. ADR (USD) 804,210
-----------
1,823,460
CHILE 0.6%*
CLOSED-END FUND 0.5%*
390,000 Five Arrows Chile Investment Trust, Ltd. (USD) + 1,146,600
TELECOMMUNICATION 0.1%*
4,000 Compania de Telefonos Chile ADR (USD) 325,500
-----------
1,472,100
CHINA 0.1%*
AUTO & TRUCK PARTS
15,000 China Tire Holdings, Ltd. (USD) 159,375
FRANCE 4.2%*
CONGLOMERATE 2.8%*
14,877 Chargeurs 2,897,967
13,500 Compagnie Generale des Eaux 1,502,705
89,500 Lagardere Groupe 1,854,110
-----------
6,254,782
LEISURE PRODUCT 0.9%*
3,380 Salomon S.A. 1,529,317
2,200 Skis Rossignol 518,341
-----------
2,047,658
METAL PRODUCTS & FABRICATION 0.3%*
10,000 Alcatel Cable + 608,091
RETAIL - DEPARTMENT STORE 0.2%*
3,600 Bazar de L'Hotel de Ville S.A. 422,984
-----------
9,333,515
GERMANY 0.6%*
HOUSEHOLD APPLIANCE & FURNISHINGS 0.3%*
25,000 Tarkett Aktiengesellschaft (Acquired 6/27/95;
Cost $576,992) (r) + 649,022
TRANSPORTATION SERVICE 0.3%*
11,000 APCOA Parking Aktiengesellschaft + 578,298
-----------
1,227,320
GHANA 1.1%*
METALS & MINING
61,000 Ashanti Goldfields Company, Ltd. (USD) (Acquired
9/22/94 - 11/15/94; Cost $1,243,400) (r) 1,418,250
43,600 Ashanti Goldfields Company, Ltd. GDR (USD) 1,013,700
-----------
2,431,950
HONG KONG 3.0%*
Brokerage & Investment Management 1.0%*
1,491,000 Peregrine Investment Holdings, Ltd. 2,119,595
ELECTRONIC PRODUCTS - MISCELLANEOUS 0.1%*
137,500 Johnson Electric Holdings, Ltd. 277,211
LEISURE SERVICE 1.6%*
7,223,620 CDL Hotels International, Ltd. 3,524,150
REAL ESTATE 0.3%*
368,000 Great Eagle Holdings, Ltd. 784,719
-----------
6,705,675
INDIA 2.0%*
AUTOMOBILE 0.4%*
40,000 Tata Engineering and Locomotive Company
(USD) (Acquired 7/15/94; Cost $560,000) (r) + 1,040,000
CLOSED-END FUND 0.7%*
125,000 The India Gateway Fund, Ltd. (USD) + 933,750
25,000 The India Gateway Fund, Ltd. Warrants,
Expire 5/31/97 (USD) + 0
7,100 Peregrine Indian Smaller Companies Fund (USD) + 596,471
-----------
1,530,221
ENGINEERING & CONSTRUCTION 0.5%*
10,000 Larsen & Toubro, Ltd. GDR (USD) + 197,550
45,000 Larsen & Toubro, Ltd. GDR (USD) (Acquired
12/14/94, 2/07/95; Cost $658,125) (r) + 888,975
-----------
1,086,525
SHIPPING 0.1%*
19,400 The Great Eastern Shipping Company, Ltd.
GDR (USD) + 138,225
</TABLE>
See notes to financial statements.
25
<PAGE> 28
SCHEDULE OF INVESTMENTS IN SECURITIES (continued)
STRONG INTERNATIONAL STOCK FUND (continued) June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
-------------------------------------------------------------------------------------
<S> <C> <C>
SHOE & APPAREL MANUFACTURING 0.3%*
118,000 The Arvind Mills, Ltd. GDR (USD) + $ 620,090
-------------
4,415,061
INDONESIA 5.4%*
AUTOMOBILE 1.1%*
1,405,000 Astra International PT (Fgn Reg) 2,492,030
BANK - MONEY CENTER 1.8%*
377,000 Bank Bali PT (Fgn Reg) 956,466
976,000 Bank Danamon PT (Fgn Reg) + 1,424,338
548,000 Bank International Indonesia PT (Fgn Reg) 1,691,738
-------------
4,072,542
ENGINEERING & CONSTRUCTION 0.9%*
275,000 Indocement Tunggal PT (Fgn Reg) 1,080,489
254,000 Semen Cibinong PT (Fgn Reg) 798,383
-------------
1,878,872
PAPER & FOREST PRODUCTS 0.4%*
60,000 Asia Pacific Resources International Holdings,
Ltd. Class A (USD) + 547,500
28,000 Asia Pulp and Paper Company, Ltd. ADR (USD) + 353,500
-------------
901,000
REAL ESTATE 0.5%*
1,362,000 Duta Anggada PT (Fgn Reg) 1,100,853
RETAIL - DEPARTMENT STORE 0.7%*
764,000 Matahari Putra Prima PT (Fgn Reg) 1,217,872
382,000 Matahari Putra Prima PT Rights, Expire
8/04/95 (Fgn Reg) + 368,792
-------------
1,586,664
-------------
12,031,961
ISRAEL 0.4%*
CONGLOMERATE
146,000 Ampal-American Israel Corporation of
South Africa Class A (USD) + 967,250
ITALY 2.8%*
AUTO & TRUCK PARTS 0.3%*
40,000 Filatura del Brembo Spa + 276,532
146,666 Magneti Marelli Spa 282,649
-------------
559,181
AUTOMOBILE 0.6%*
142,600 Pininfarina Spa 1,310,815
ELECTRONIC PRODUCTS - MISCELLANEOUS 0.6%*
1,314,000 Olivetti Spa + 1,284,635
LEISURE SERVICE 0.4%*
403,000 Costa Crociere Spa 806,232
RETAIL - MAJOR CHAIN 0.4%*
93,000 Benetton Group Spa 922,018
TELECOMMUNICATION 0.5%*
443,000 Telecom Italia Spa 1,202,001
-------------
6,084,882
JAPAN 14.0%*
BANK - MONEY CENTER 0.4%*
100,000 Mitsui Trust & Banking Company, Ltd. 920,300
BROKERAGE & INVESTMENT MANAGEMENT 1.0%*
130,000 Nomura Securities Company, Ltd. 2,270,073
COMPUTER SOFTWARE 0.7%*
27,500 Nintendo Company, Ltd. 1,580,143
CONGLOMERATE 0.6%*
120,000 Mitsubishi Corporation 1,366,291
CONSUMER - MISCELLANEOUS 0.1%*
2,050 Citizen Watch Company, Ltd. Warrants,
Expire 10/22/96 (USD) + 90,200
COSMETIC & PERSONAL CARE 0.4%*
50,000 Charle Company 943,897
ELECTRONIC PRODUCTS - MISCELLANEOUS 3.3%*
81,000 Canon, Inc. 1,318,860
150,000 Hitachi, Ltd. 1,495,487
28,000 Mitsumi Electric Company, Ltd. 482,331
1,645 Olympus Optical Company, Ltd. Warrants,
Expire 12/03/96 (USD) + 82,250
3,000 Rohm Company, Ltd. Warrants,
Expire 11/20/97 (CHF) + 1,172,384
75,000 Sharp Corporation 991,092
37,000 Sony Corporation 1,776,768
-------------
7,319,172
ELECTRONICS - SEMICONDUCTOR/COMPONENT 0.6%*
1,100 Kyocera Company, Ltd. Warrants,
Expire 1/23/98 (USD) + 1,210,000
ENGINEERING & CONSTRUCTION 1.5%*
285,000 Ishikawajima Harima Heavy Industries
Company, Ltd. 1,119,757
157,000 Kumagai Gumi Company, Ltd. 657,601
70,000 Ohmoto Gumi Company, Ltd. 1,565,099
-------------
3,342,457
LEISURE SERVICE 0.9%*
11,600 Toho Company 1,929,798
MACHINE TOOL 0.5%*
61,000 Mori Seiki Company, Ltd. 1,086,779
MACHINERY - MISCELLANEOUS 0.2%*
36,000 Denyo Company, Ltd. 484,219
RAILROAD 0.6%*
265 East Japan Railway Company 1,360,097
REAL ESTATE 0.7%*
163,000 TOC Company, Ltd. 1,480,857
RETAIL - FOOD CHAIN 0.9%*
37,000 Ito-Yokado, Ltd. 1,951,389
RETAIL - SPECIALTY 0.3%*
1,400 Best Denki Warrants, Expire 5/14/97 (USD) + 455,000
23,000 Renown, Inc. + 67,843
-------------
522,843
STEEL 0.2%*
98,000 Chubu Steel Plate Company, Ltd. 518,011
</TABLE>
See notes to financial statements.
26
<PAGE> 29
STRONG INTERNATIONAL STOCK FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
-------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATION 1.1%*
275 Nippon Telegraph & Telephone Corporation $ 2,303,699
------------
30,680,225
MALAYSIA 2.0%*
AGRICULTURAL OPERATIONS 0.7%*
500,000 Kuala Lumpur Kepong BHD 1,589,417
BANK - MONEY CENTER 1.0%*
601,000 Arab-Malaysian Corporation 2,144,668
CONGLOMERATE 0.3%*
215,000 Sime Darby BHD 599,672
------------
4,333,757
MEXICO 0.5%*
LEISURE SERVICE 0.0%*
35,000 Grupo Posadas S.A. de C.V. + 11,760
METALS & MINING 0.5%*
353,500 Industrias Penoles S.A. de C.V. 1,055,410
------------
1,067,170
NETHERLANDS 0.9%*
LEISURE PRODUCT 0.2%*
6,000 Polygram 354,438
MACHINERY - TRANSPORTATION EQUIPMENT &
PARTS 0.7%*
36,000 Philips Electronics N.V. ADR (USD) 1,539,000
------------
1,893,438
NEW ZEALAND 6.3%*
AGRICULTURAL OPERATIONS 0.8%*
416,320 Fernz Corporation, Ltd. 1,196,823
780,000 Wrightson, Ltd. 537,113
------------
1,733,936
AIRLINE 0.7%*
508,000 Air New Zealand, Ltd. Class B 1,477,362
CONGLOMERATE 1.0%*
1,534,114 Brierley Investments, Ltd. 1,158,964
2,580,000 Guinness Peat Group PLC + 1,052,164
------------
2,211,128
LEISURE SERVICE 1.8%*
3,200,000 CDL Hotels New Zealand, Ltd. 1,540,340
313,000 Helicopter Line, Ltd. 941,653
108,000 Sky City, Ltd. + 1,534,323
------------
4,016,316
PAPER & FOREST PRODUCTS 2.0%*
751,321 Carter Holt Harvey, Ltd. 1,838,403
865,000 Fletcher Challenge, Ltd. Forestry Division 1,139,243
534,000 Fletcher Challenge, Ltd. Ordinary Division 1,499,424
------------
4,477,070
------------
13,915,812
NORWAY 3.0%*
AIRLINE 0.9%*
47,250 Braathens S.A.F.E. 1,981,953
AUTO & TRUCK PARTS 1.7%*
510,000 SensoNor AS + 3,641,278
SHIPPING 0.4%*
127,000 Mosvold Shipping AS Class B 927,358
------------
6,550,589
PERU 1.3%*
BANK - MONEY CENTER 0.8%*
990,861 Banco de Credito del Peru 1,736,790
METALS & MINING 0.5%*
84,195 Minsur S.A. + 1,061,425
------------
2,798,215
PHILIPPINES 1.6%*
BANK - MONEY CENTER 0.5%*
101,000 Philippine National Bank + 1,176,488
REAL ESTATE 0.8%*
124,800 SM Prime Holdings, Inc. GDR (USD) + 1,653,600
TELECOMMUNICATION 0.3%*
9,000 Philippine Long Distance Telephone Company
ADR (USD) 645,750
------------
3,475,838
PORTUGAL 0.2%*
PAPER & FOREST PRODUCTS
50,000 Portucel Industrial S.A. ADR (USD) (Acquired
6/27/95; Cost $356,250) (r) + 358,750
RUSSIA 0.6%*
CLOSED-END FUND
40,000 First NIS Regional Fund (USD) + 154,000
165,000 The Fleming Russia Securities Fund, Ltd. (USD) + 1,196,250
------------
1,350,250
SINGAPORE 6.9%*
AUTOMOBILE 0.3%*
80,000 Cycle & Carriage, Ltd. 715,564
BANK - MONEY CENTER 1.7%*
215,000 The Development Bank of Singapore, Ltd. (Fgn Reg) 2,446,154
377,000 Hong Leong Finance, Ltd. (Fgn Reg) 1,294,884
------------
3,741,038
COMPUTER SERVICE 0.3%*
859,000 ST Computer Systems & Services, Ltd. (Fgn Reg) 676,136
CONGLOMERATE 2.4%*
144,808 Jardine Matheson Holdings, Ltd. (USD) 1,064,339
419,625 Jardine Strategic Holdings, Ltd. (USD) 1,351,193
46,625 Jardine Strategic Holdings, Ltd. Warrants,
Expire 5/02/98 (USD) + 20,515
342,000 Keppel Corporation, Ltd. 2,789,839
------------
5,225,886
REAL ESTATE 2.1%*
389,000 DBS Land, Ltd. 1,219,191
858,142 Hongkong Land Holdings, Ltd. (USD) 1,561,818
222,000 Malayan Credit, Ltd. 463,857
644,000 United Overseas Land, Ltd. 1,276,479
------------
4,521,345
RETAIL - FOOD CHAIN 0.1%*
373,518 Dairy Farm International Holdings, Ltd. (USD) 321,225
------------
15,201,194
</TABLE>
See notes to financial statements.
27
<PAGE> 30
SCHEDULE OF INVESTMENTS IN SECURITIES (continued) June 30, 1995 (Unaudited)
-------------------------------------------------------------------------------
STRONG INTERNATIONAL STOCK FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
--------------------------------------------------------------------------------------------
<S> <C> <C>
SOUTH AFRICA 2.6%*
CONGLOMERATE 1.2%*
363,000 Genbel Investments, Ltd. $ 833,565
88,000 Liblife Strategic Investments, Ltd. 296,459
255,000 Safmarine and Rennies Holdings, Ltd. 739,842
125,000 Wooltru, Ltd. 713,304
----------
2,583,170
METALS & MINING 1.4%*
43,400 Anglo American Corporation of South Africa 2,351,268
29,000 De Beers Consolidated Mines, Ltd. ADR (USD) 750,375
----------
3,101,643
----------
5,684,813
SOUTH KOREA 1.9%*
AIRLINE 0.5%*
29,582 Korean Air Lines Company, Ltd. + 1,065,069
BANK - MONEY CENTER 0.4%*
46,000 Kookmin Bank + 818,991
BROKERAGE & INVESTMENT MANAGEMENT 0.4%*
49,920 Ssangyong Investment & Securities Company, Ltd. 849,282
ELECTRIC UTILITY 0.6%*
38,210 Korea Electric Power Corporation 1,431,143
----------
4,164,485
SPAIN 2.0%*
ELECTRIC UTILITY 0.6%*
176,000 Iberdrola S.A. 1,325,719
ENGINEERING & CONSTRUCTION 0.4%*
9,600 Fomento de Construcciones y Contratas S.A. 816,681
OIL - INTERNATIONAL INTEGRATED 0.5%*
35,000 Repsol S.A. ADR (USD) 1,106,875
TELECOMMUNICATION 0.5%*
91,000 Telefonica de Espana S.A. 1,172,492
----------
4,421,767
SWEDEN 1.4%*
HEALTHCARE - MEDICAL SUPPLY 0.8%*
180,550 Arjo AB 1,586,948
33,000 Sparbanken Sverige AB A Shares + 276,458
----------
1,863,406
METALS & MINING 0.6%*
66,400 Terra Mining AB 1,212,844
----------
3,076,250
SWITZERLAND 3.8%*
BANK - MONEY CENTER 0.3%*
1,800 Swiss Bank Corporation 637,777
CONSUMER - MISCELLANEOUS 0.4%*
1,300 SMH (Suisse Microelectronique et d'Horlogerie) 835,432
FINANCE - MISCELLANEOUS 0.3%*
400 SGS (Societe Generale de Surveillance)
Holdings S.A. 694,746
FOOD 0.8%*
1,700 Nestle AG 1,770,126
LEISURE SERVICE 0.5%*
700 Reisebuero Kuoni AG 1,124,620
MACHINERY - MISCELLANEOUS 0.6%*
560 SIG (Schweizererische Industrie Gesellschaft) 1,308,207
RETAIL - SPECIALTY 0.9%*
1,650 Financiere Richemont AG CIE Units 2,034,737
----------
8,405,645
TAIWAN 2.0%*
CLOSED-END FUND 1.7%*
2,011,000 Core Pacific Pioneer Fund 630,676
1,835,000 Jardine Fleming Fund 714,022
1,586,000 Kwang Hua Fortune Fund 592,570
1,579,000 NITC Fu-yuan Fund 669,430
19,000 The Taiwan Fund, Inc. (USD) 415,625
1,759,000 Yuan Ta Duo Yuan Fund 711,691
----------
3,734,014
SHIPPING 0.3%*
335,000 Evergreen Marine Corporation 582,372
----------
4,316,386
THAILAND 2.5%*
AIRLINE 0.8%*
785,000 Thai Airways International PCL (Fgn Reg) 1,749,038
CLOSED-END FUND 0.5%*
1,800,000 The Ruam Pattana Two Fund (Fgn Reg) 1,148,471
CONGLOMERATE 0.7%*
68,500 Loxley PCL (Fgn Reg) 1,470,731
SHOE & APPAREL MANUFACTURING 0.5%*
689,800 Saha Union PCL (Fgn Reg) 1,110,778
----------
5,479,018
UNITED KINGDOM 7.0%*
BANK - MONEY CENTER 1.3%*
425,697 Allied Irish Banks PLC 2,014,982
112,000 Royal Bank of Scotland PLC 761,794
----------
2,776,776
BEVERAGE - ALCOHOLIC 0.1%*
121,000 Taunton Cider PLC 329,204
CLOSED-END FUND 0.5%*
1,957,000 The Central European Growth Fund PLC 1,198,768
CONGLOMERATE 1.7%*
552,770 Hanson Trust PLC 1,930,468
520,000 Tomkins PLC 1,857,391
----------
3,787,859
FINANCE - MISCELLANEOUS 0.2%*
200,000 Intrum Justitia PLC 233,884
75,600 Union Discount PLC 103,444
----------
337,328
LEISURE SERVICE 0.5%*
379,534 Ladbroke Group PLC 1,020,519
MEDIA - PUBLISHING 0.4%*
92,000 Pearson PLC 870,940
</TABLE>
See notes to financial statements.
28
<PAGE> 31
STRONG INTERNATIONAL STOCK FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
-------------------------------------------------------------------------------------------
<S> <C> <C>
METALS & MINING 1.9%*
924,717 Lonrho PLC $ 2,177,480
154,000 The RTZ Corporation PLC 2,007,952
------------
4,185,432
RETAIL - RESTAURANT 0.1%*
175,000 City Centre Restaurants PLC 246,414
TELECOMMUNICATION 0.3%*
84,506 Cable & Wireless PLC 578,149
------------
15,331,389
UNITED STATES 0.9%*
CONGLOMERATE 0.1%*
7,527 U.S. Industries, Inc. + 102,555
OIL - INTERNATIONAL INTEGRATED 0.2%*
300,000 Harken Energy Corporation + 525,000
TELECOMMUNICATION 0.6%*
46,000 Millicom International Cellular S.A. + 1,362,750
------------
1,990,305
------------
TOTAL COMMON STOCKS (COST $207,283,595) 201,983,479
PREFERRED STOCKS 0.5%*
AUSTRALIA 0.3%*
MEDIA - PUBLISHING
144,285 The News Corporation, Ltd. Voting 713,752
SOUTH KOREA 0.2%*
BROKERAGE & INVESTMENT MANAGEMENT
40,000 Daeyu Securities Company, Ltd. + 342,895
------------
TOTAL PREFERRED STOCKS (COST $1,510,694) 1,056,647
CONVERTIBLE CORPORATE BONDS 0.4%*
PERU 0.3%*
650,000 International Financial Holdings, Inc.
USD Exchangeable Notes, 6.50%, Due 8/01/99
(Acquired 9/20/94, 9/23/94; Cost $698,410) (r) 695,500
THAILAND 0.1%*
350,000 Siam Syntech Construction Public Company,
USD Ltd., Convertible Bonds, 4.50%, Due 2/25/02
(Acquired 2/09/94; Cost $350,000) (r) 205,625
------------
TOTAL CONVERTIBLE CORPORATE BONDS
(COST $1,048,410) 901,125
CASH EQUIVALENTS 5.9%*
DISCOUNTED CERIFICATE OF DEPOSIT 0.4%*
1,000,000 Morgan Guaranty Trust New York Singapore
USD Philippine Peso-Linked Certificate of Deposit,
Due 7/21/95 993,438
EURODOLLAR COMMERCIAL PAPER 1.3%*
INDONESIA 0.8%*
1,747,506 Bakrie and Brothers PT, Due 8/28/95 1,748,776
IDR
THAILAND 0.5%*
1,165,060 GS Capital Corporation, Ltd., Due 8/11/95 1,162,210
THB ------------
2,910,986
INTEREST BEARING, DUE UPON DEMAND 0.1%*
UNITED STATES
87,000 U.S. Cayman Eurodollar Call Deposit, 5.00% 87,000
USD
TIME DEPOSIT 4.1%*
JAPAN
9,000,000 Mitsubishi Corporation, 6.50%, Due 7/03/95 9,000,000
------------
USD Total Cash Equivalents (Cost $12,987,591) 12,991,424
------------
TOTAL INVESTMENTS IN SECURITIES
(COST $222,830,290) 98.7%* 216,932,675
Other Assets and Liabilities, Net 1.3%* 2,859,878
------------
NET ASSETS 100.0%* $219,792,553
============
</TABLE>
STRONG ASIA PACIFIC FUND
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
-------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks 89.6%*
AUSTRALIA 12.3%*
BEVERAGE - ALCOHOLIC 0.5%*
336,000 Foster's Brewing Group, Ltd. $ 298,515
BEVERAGE - SOFT DRINK 1.0%*
86,651 Coca-Cola Amatil, Ltd. 535,809
21,662 Coca-Cola Amatil, Ltd. Rights, Expire 7/26/95 + 26,174
------------
561,983
ELECTRONIC PRODUCTS - MISCELLANEOUS 0.2%*
90,000 ERG Australia, Ltd. 92,113
ENGINEERING & CONSTRUCTION 0.8%*
109,503 Leighton Holdings, Ltd. 193,017
863,000 Walker Corporation 276,020
------------
469,037
FINANCE - MISCELLANEOUS 1.1%*
50,938 Lend Lease Corporation, Ltd. 650,951
FOOD 0.6%*
170,715 Burns, Philp & Company, Ltd. 356,727
LEISURE SERVICE 2.0%*
692,560 AAPC, Ltd. 324,877
505,000 Casinos Austria International, Ltd. + 340,982
235,000 Sydney Harbour Casino, Ltd. + 242,188
11,000 TABCORP Holdings, Ltd. ADR (USD)
(Acquired 8/15/94; Cost $184,030) (r) 225,500
------------
1,133,547
MEDIA - PUBLISHING 0.3%*
32,278 The News Corporation, Ltd. 180,321
MEDIA - RADIO/TV 0.3%*
179,437 Austereo, Ltd. 184,926
METALS & MINING 2.7%*
50,984 The Broken Hill Proprietary Company, Ltd. 627,623
143,390 MIM Holdings, Ltd. 178,350
400,000 Macmahon Holdings, Ltd. + 105,191
528,203 Normandy Mining, Ltd. 653,232
------------
1,564,396
OIL - INTERNATIONAL INTEGRATED 2.8%*
4,130,000 Anzoil NL + 249,509
386,000 Novus Petroleum, Ltd. + 438,959
180,000 Oil Search, Ltd. 134,332
194,000 Woodside Petroleum, Ltd. 761,128
------------
1,583,928
------------
7,076,444
</TABLE>
See notes to financial statements.
29
<PAGE> 32
SCHEDULE OF INVESTMENTS IN SECURITIES (continued) June 30, 1995 (Unaudited)
STRONG ASIA PACIFIC FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
---------------------------------------------------------------------------------------------
<S> <C> <C>
CHINA 0.3%*
AUTO & TRUCK PARTS 0.2%*
8,500 China Tire Holdings, Ltd. (USD) $ 90,312
CHEMICAL 0.1%*
164,000 Zhenhai Refining & Chemical Company, Ltd. 39,210
----------
129,522
HONG KONG 3.6%*
BROKERAGE & INVESTMENT MANAGEMENT 1.1%*
454,000 Peregrine Investment Holdings, Ltd. 645,403
ELECTRONIC PRODUCTS - MISCELLANEOUS 0.4%*
58,000 Johnson Electric Holdings, Ltd. 116,932
1,068,000 Luks Industrial Company, Ltd. 114,560
-----------
231,492
LEISURE SERVICE 1.6%*
1,926,887 CDL Hotels International, Ltd. 940,060
REAL ESTATE 0.5%*
130,000 Great Eagle Holdings, Ltd. 277,211
----------
2,094,166
INDIA 4.0%*
AUTO & TRUCK PARTS 1.3%*
9,000 Bajaj Auto, Ltd. GDR (USD) (Acquired 10/28/94;
Cost $227,970) (r) + 249,750
80,000 Tube Investments of India, Ltd. GDR (USD)
(Acquired 5/17/94; Cost $701,600) (r) 480,000
----------
729,750
AUTOMOBILE 0.3%*
7,000 Tata Engineering and Locomotive Company
(USD) (Acquired 7/15/94; Cost $98,000) (r) + 182,000
CLOSED-END FUND 0.6%*
25,000 The India Gateway Fund, Ltd. (USD) + 186,750
5,000 The India Gateway Fund, Ltd. Warrants,
Expire 5/31/97 (USD) + 0
2,000 Peregrine Indian Smaller Companies Fund (USD) + 168,020
----------
354,770
ELECTRIC POWER 0.3%*
450 Tata Electric Companies GDS (USD) (Acquired
2/22/94; Cost $319,500) (r) + 163,125
ENGINEERING & CONSTRUCTION 0.7%*
20,000 Larsen & Toubro, Ltd. GDR (USD) (Acquired
11/18/94; Cost $334,000) (r) + 395,100
SHIPPING 0.2%*
18,500 The Great Eastern Shipping Company, Ltd.
GDR (USD) + 131,813
SHOE & APPAREL MANUFACTURING 0.6%*
64,500 The Arvind Mills, Ltd. GDR (USD) 338,948
----------
2,295,506
INDONESIA 8.0%*
AUTOMOBILE 1.3%*
420,000 Astra International PT (Fgn Reg) 744,948
BANK - MONEY CENTER 2.8%*
146,000 Bank Bali PT (Fgn Reg) 370,409
480,000 Bank Danamon PT (Fgn Reg) + 700,494
177,000 Bank International Indonesia PT (Fgn Reg) 546,419
----------
1,617,322
ENGINEERING & CONSTRUCTION 1.3%*
142,000 Indocement Tunggal PT (Fgn Reg) 557,925
59,000 Semen Cibinong PT (Fgn Reg) 185,451
----------
743,376
PAPER & FOREST PRODUCTS 0.6%*
18,000 Asia Pacific Resources International Holdings,
Ltd. Class A (USD) + 164,250
11,500 Asia Pulp and Paper Company, Ltd. ADR (USD) + 145,188
----------
309,438
REAL ESTATE 0.9%*
461,000 Duta Anggada PT (Fgn Reg) 372,609
210,000 Putra Surya Perkasa PT (Fgn Reg) + 148,518
----------
521,127
RETAIL - DEPARTMENT STORE 0.9%*
252,000 Matahari Putra Prima PT (Fgn Reg) 401,706
126,000 Matahari Putra Prima PT Rights, Expire
8/04/95 (Fgn Reg) + 121,643
----------
523,349
TELECOMMUNICATION SERVICE 0.2%*
3,000 Perusahaan Perseroan (Persero) PT Indonesian
Satellite Corporation ADR (USD) 114,750
----------
4,574,310
JAPAN 17.3%*
AUTO & TRUCK PARTS 0.1%*
4,400 Murakami Corporation 60,740
BANK - MONEY CENTER 0.4%*
28,000 Mitsui Trust & Banking Company, Ltd. 257,684
BROKERAGE & INVESTMENT MANAGEMENT 1.3%*
43,000 Nomura Securities Company, Ltd. 750,870
COMPUTER SOFTWARE 0.7%*
7,500 Nintendo Company, Ltd. 430,948
CONGLOMERATE 0.7%*
33,000 Mitsubishi Corporation 375,730
CONSUMER - MISCELLANEOUS 0.1%*
800 Aderans Company, Ltd. Warrants, Expire
8/19/97 (CHF) + 20,148
600 Citizen Watch Company, Ltd. Warrants,
Expire 10/22/96 (USD) + 26,400
-----------
46,548
COSMETIC & PERSONAL CARE 0.7%*
20,000 Charle Company 377,559
ELECTRONICS - SEMICONDUCTOR/COMPONENT 0.6%*
300 Kyocera Company, Ltd. Warrants, Expire
1/23/98 (USD) + 330,000
</TABLE>
30
<PAGE> 33
STRONG ASIA PACIFIC FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
-------------------------------------------------------------------------------------
<S> <C> <C>
ELECTRONIC PRODUCTS - MISCELLANEOUS 3.9%*
19,000 Canon, Inc. $ 309,362
24,000 Hitachi, Ltd. 239,278
5,000 Mitsumi Electric Company, Ltd. 86,131
550 Olympus Optical Company, Ltd. Warrants,
Expire 12/03/96 (USD) + 27,500
1,100 Rohm Company, Ltd. Warrants, Expire
11/20/97 (CHF) + 429,874
27,000 Sharp Corporation 356,793
11,700 Sony Corporation 561,843
26,000 Toko Seiki Company 236,517
-----------
2,247,298
ENGINEERING & CONSTRUCTION 1.2%*
67,000 Ishikawajima Harima Heavy Industries
Company, Ltd. 263,241
15,000 Kumagai Gumi Company, Ltd. 62,828
15,400 Ohmoto Gumi Company, Ltd. 344,322
-----------
670,391
HOUSEHOLD APPLIANCE & FURNISHINGS 0.1%*
1,800 KVK Corporation 39,714
LEISURE SERVICE 0.7%*
2,600 Toho Company 432,541
MACHINE TOOL 0.6%*
21,000 Mori Seiki Company, Ltd. 374,137
MACHINERY - MISCELLANEOUS 0.5%*
21,000 Denyo Company, Ltd. 282,461
METALS & MINING 0.8%*
44,000 Hokuetsu Metal 202,466
35,000 Tokyo Tungsten Company 243,230
-----------
445,696
RAILROAD 0.7%*
80 East Japan Railway Company 410,595
REAL ESTATE 0.7%*
44,000 TOC Company, Ltd. 399,740
RETAIL - FOOD CHAIN 1.1%*
12,000 Ito-Yokado, Ltd. 632,883
RETAIL - MAJOR CHAIN 0.8%*
12,200 Bunkyodo Japan Company 399,445
200 Tobu Store Company, Ltd. Warrants,
Expire 1/21/97 (USD) + 60,000
-----------
459,445
STEEL 0.4%*
42,000 Chubu Steel Plate Company, Ltd. 222,005
TELECOMMUNICATION 1.2%*
80 Nippon Telegraph & Telephone Corporation 670,167
-----------
9,917,152
MALAYSIA 2.3%*
AGRICULTURAL OPERATIONS 0.6%*
118,000 Kuala Lumpur Kepong BHD 375,103
BANK - MONEY CENTER 1.3%*
206,000 Arab-Malaysian Corporation 735,111
CONGLOMERATE 0.3%*
58,000 Sime Darby BHD $ 161,772
REAL ESTATE 0.1%*
15,000 IOI Properties BHD 52,297
-----------
1,324,283
NEW ZEALAND 11.0%*
AGRICULTURAL OPERATIONS 0.4%*
83,470 Fernz Corporation, Ltd. 239,957
AIRLINE 0.6%*
122,000 Air New Zealand, Ltd. Class B 354,800
CONGLOMERATE 2.1%*
445,416 Brierley Investments, Ltd. 336,495
850,000 Corporate Investments, Ltd. + 147,750
1,300,000 Guinness Peat Group PLC + 530,160
1,100,000 Hellaby Holdings, Ltd. 220,622
-----------
1,235,027
LEISURE SERVICE 3.3%*
1,522,000 CDL Hotels New Zealand, Ltd. 732,624
216,600 Helicopter Line, Ltd. 651,636
36,000 Sky City, Ltd. + 511,441
-----------
1,895,701
PAPER & FOREST PRODUCTS 2.8%*
206,000 Carter Holt Harvey, Ltd. 504,060
378,000 Fletcher Challenge, Ltd. Forestry Division 497,843
213,000 Fletcher Challenge, Ltd. Ordinary Division 598,085
-----------
1,599,988
REAL ESTATE 0.5%*
550,000 SEABIL (NZ), Ltd. 264,746
RETAIL - MAJOR CHAIN 0.2%*
137,000 Progressive Enterprises, Ltd. 112,657
SHOE & APPAREL MANUFACTURING 0.3%*
143,000 Lane Walker Rudkin Industries, Ltd. + 152,964
TRANSPORTATION SERVICE 0.8%*
366,000 Port of Tauranga, Ltd. 300,968
80,000 Ports of Aukland, Ltd. 157,778
-----------
458,746
-----------
6,314,586
PAKISTAN 0.2%*
TELECOMMUNICATION SERVICE
1,000 Pakistan Telecommunication Company, Ltd. GDR
(USD) (Acquired 9/16/94; Cost $179,770) (r) + 101,500
PHILIPPINES 4.2%*
BANK - MONEY CENTER 0.8%*
39,000 Philippine National Bank 454,287
CONGLOMERATE 1.0%*
69,080 Benpres Holdings Corporation GDR (USD)
(Acquired 10/25/94; Cost $678,240) (r) + 569,910
REAL ESTATE 1.1%*
47,351 SM Prime Holdings, Inc. GDR (USD)
(Acquired 6/15/94; Cost $365,674) (r) + 627,401
</TABLE>
See notes to financial statements.
31
<PAGE> 34
SCHEDULE OF INVESTMENTS IN SECURITIES (continued) June 30, 1995 (Unaudited)
STRONG ASIA PACIFIC FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
-------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATION 1.3%*
5,200 Philippine Long Distance Telephone Company
ADR (USD) $ 373,100
495,000 Pilipino Telephone Corporation + 387,465
-----------
760,565
-----------
2,412,163
RUSSIA 0.4%*
CLOSED-END FUND
36,000 The Fleming Russia Securities Fund, Ltd. (USD) + 261,000
SINGAPORE 12.2%*
BANK - MONEY CENTER 2.1%*
67,000 The Development Bank of Singapore, Ltd. (Fgn Reg) 762,290
134,000 Hong Leong Finance, Ltd. (Fgn Reg) 460,250
-----------
1,222,540
BEVERAGE - SOFT DRINK 0.3%*
16,700 Fraser & Neave, Ltd. 192,394
CLOSED-END FUND 0.8%*
31,000 Singapore Sesdaq Fund (USD) + 465,000
COMPUTER SERVICE 0.2%*
125,000 ST Computer Systems & Services, Ltd. (Fgn Reg) 98,390
CONGLOMERATE 3.7%*
184,000 Acma, Ltd. + 584,587
53,326 Jardine Matheson Holdings, Ltd. (USD) 391,946
114,750 Jardine Strategic Holdings, Ltd. (USD) 369,495
12,750 Jardine Strategic Holdings, Ltd. Warrants,
Expire 5/02/98 (USD) + 5,610
92,000 Keppel Corporation, Ltd. 750,483
-----------
2,102,121
CONSUMER - MISCELLANEOUS 0.5%*
574,000 GB Holdings, Ltd. + 308,050
ENGINEERING & CONSTRUCTION 0.3%*
152,000 Lim Kah Ngam, Ltd. 165,324
REAL ESTATE 3.1%*
16,000 Bukit Sembawang Estates, Inc. 322,862
156,000 DBS Land, Ltd. 488,930
276,737 Hongkong Land Holdings, Ltd. (USD) 503,661
23,000 Malayan Credit, Ltd. 48,057
224,000 United Overseas Land, Ltd. 443,993
-----------
1,807,503
RETAIL - FOOD CHAIN 0.2%*
130,700 Dairy Farm International Holdings, Ltd. (USD) 112,402
SHIPPING 0.5%*
310,000 Pacific Carriers, Ltd. 288,372
TRANSPORTATION SERVICE 0.5%*
332,000 Comfort Group, Ltd. + 261,324
-----------
7,023,420
SOUTH AFRICA 0.6%*
METALS & MINING
6,100 Anglo American Corporation of South Africa 330,478
SOUTH KOREA 2.1%*
AIRLINE 0.3%*
5,700 Korean Air Lines Company, Ltd. + 205,223
BANK - MONEY CENTER 0.6%*
17,452 Hana Bank + 322,226
BROKERAGE & INVESTMENT MANAGEMENT 0.3%*
11,024 Ssangyong Investment & Securities Company, Ltd. 187,550
ELECTRIC UTILITY 0.9%*
13,800 Korea Electric Power Corporation 516,874
-----------
1,231,873
SWEDEN 0.2%*
METALS & MINING
7,200 Terra Mining AB 131,513
TAIWAN 3.0%*
CLOSED-END FUND 2.5%*
546,000 Core Pacific Pioneer Fund 171,233
520,000 Jardine Fleming Fund 202,339
449,000 Kwang Hua Fortune Fund 167,758
447,000 NITC Fu-yuan Fund 189,509
45,000 The R.O.C. Taiwan Fund (USD) + 495,000
506,000 Yuan Ta Duo Yuan Fund 204,727
-----------
1,430,566
ELECTRONIC PRODUCTS - MISCELLANEOUS 0.2%*
6,728 Yageo Corporation GDR (USD) (Acquired
3/27/95; Cost $51,301) (r) + 99,238
SHIPPING 0.3%*
94,000 Evergreen Marine Corporation 163,412
-----------
1,693,216
THAILAND 5.4%*
AGRICULTURAL OPERATIONS 0.3%*
125,000 Sri Trang Agro-Industry PCL (Fgn Reg) 197,488
AIRLINE 1.0%*
247,000 Thai Airways International PCL (Fgn Reg) 550,334
CLOSED-END FUND 1.1%*
435,000 The Ruam Pattana Two Fund (Fgn Reg) 277,547
491,000 Ruang Khao Fund (Fgn Reg) + 353,059
-----------
630,606
CONGLOMERATE 0.6%*
16,000 Loxley PCL (Fgn Reg) 343,528
ELECTRONICS - SEMICONDUCTOR/COMPONENT 0.7%*
22,000 Alphatec Electronics PCL (Fgn Reg) 401,053
MEDIA - PUBLISHING 0.5%*
55,000 Matichon Newspaper PCL (Fgn Reg) 282,965
SHOE & APPAREL MANUFACTURING 1.2%*
422,700 Saha Union PCL (Fgn Reg) 680,669
-----------
3,086,643
UNITED KINGDOM 0.1%*
TELECOMMUNICATION
11,722 Cable & Wireless PLC 80,196
</TABLE>
See notes to financial statements.
32
<PAGE> 35
STRONG ASIA PACIFIC FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL AMOUNT (NOTE 2)
-------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES 2.0%*
LEISURE SERVICE 0.3%*
9,000 Showboat, Inc. $ 166,500
METALS & MINING 0.9%*
25,500 Freeport-McMoRan Copper & Gold Class A 525,938
TELECOMMUNICATION 0.8%*
15,000 Millicom International Cellular S.A. + 444,375
-------------
1,136,813
VIETNAM 0.4%*
CLOSED-END FUND
5,000 Beta Mekong Fund, Ltd. (USD) + 250,000
-------------
TOTAL COMMON STOCKS (COST $54,912,061) 51,464,784
PREFERRED STOCKS 0.8%*
AUSTRALIA 0.3%*
MEDIA - PUBLISHING
35,531 The News Corporation, Ltd. Voting 175,766
SOUTH KOREA 0.5%*
AIRLINE
14,860 Korean Air Lines Company, Ltd. + 256,731
-------------
TOTAL PREFERRED STOCKS (COST $394,763) 432,497
CONVERTIBLE CORPORATE BONDS 0.9%*
PHILIPPINES 0.5%*
300,000 House of Investments Convertible Bonds,
USD 4.00%, Due 10/17/01 289,500
THAILAND 0.4%*
400,000 Siam Syntech Construction Public Company, Ltd.
USD Convertible Bonds, 4.50%, Due 2/25/02
(Acquired 2/09/94; Cost $400,000) (r) 235,000
-------------
TOTAL CONVERTIBLE CORPORATE BONDS
(COST $700,000) 524,500
CASH EQUIVALENTS 10.3%*
EURODOLLAR COMMERCIAL PAPER 1.3%*
INDONESIA 0.8%*
436,877 Bakrie and Brothers PT, Due 8/28/95 437,194
IDR
THAILAND 0.5%*
281,273 GS Capital Corporation, Ltd., Due 8/11/95 280,533
THB -------------
717,727
INTEREST BEARING, DUE UPON DEMAND 0.1%*
UNITED STATES
$90,000 U.S. Cayman Eurodollar Call Deposit, 5.00% 90,000
TIME DEPOSITS 8.9%*
PHILIPPINES 0.9%*
500,000 Citibank Philippine Peso-Linked,12.85%,
Due 9/05/95 510,516
JAPAN 8.0%*
2,800,000 Mitsubishi Corporation, 6.50%, Due 7/03/95 2,800,000
300,000 Sanwa Corporation, 6.25%, Due 7/03/95 300,000
1,500,000 Sumitomo Corporation, 6.3125%, Due 7/03/95 1,500,000
-------------
4,600,000
-------------
5,110,516
-------------
Total Cash Equivalents (Cost $5,908,150) 5,918,243
-------------
TOTAL INVESTMENTS IN SECURITIES
(COST $61,914,974) 101.6%* 58,340,024
Other Assets and Liabilities, Net (1.6%)* (875,987)
-------------
NET ASSETS 100.0%* $57,464,037
============
</TABLE>
* Percentages are calculated as a percentage of net assets.
(USD) U.S. dollar-denominated
(CHF) Swiss franc-denominated
(IDR) Indonesian rupiah-denominated
(THB) Thailand baht-denominated
(r) Restricted security
+ Non-income producing
See notes to financial statements.
33
<PAGE> 36
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the Six Months Ended June 30, 1995 (Unaudited) (In Thousands)
STRONG STRONG STRONG
OPPORTUNITY FUND GROWTH FUND COMMON STOCK FUND
---------------- ----------- -----------------
<S> <C> <C> <C>
INCOME:
Dividends $ 6,935 $ 725 $ 5,471
Interest 3,563 709 2,610
------ ------- -------
Total Income 10,498 1,434 8,081
EXPENSES:
Investment Advisory Fees 4,692 1,238 4,146
Custodian Fees 115 43 105
Shareholder Servicing Costs 1,043 357 711
Reports to Shareholders 362 117 359
Federal and State Registration Fees 100 40 49
Other 55 22 58
------ ------- -------
Total Expenses 6,367 1,817 5,428
----- ----- -----
NET INVESTMENT INCOME (LOSS) 4,131 (383) 2,653
REALIZED AND UNREALIZED GAIN (LOSS):
Net Realized Gain (Loss) on:
Investments 21,615 1,822 38,252
Futures Contracts, Options and Forward Currency
Contracts 540 (306) (1,214)
Foreign Currencies 2 -- (3)
Change in Unrealized Appreciation/Depreciation on:
Investments 105,446 47,104 93,901
Futures Contracts, Options and Forward Currency
Contracts (4) (24) 54
------ ------- -------
NET GAIN 127,599 48,596 130,990
------ ------- -------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $131,730 $48,213 $133,643
======== ======= ========
<CAPTION>
STRONG STRONG INTERNATIONAL STRONG
DISCOVERY FUND STOCK FUND ASIA PACIFIC FUND
-------------- -------------------- -----------------
<S> <C> <C> <C>
INCOME:
Dividends (net of withholding taxes of $0, $311, and
$57, respectively) $ 2,128 $2,607 $ 492
Interest 322 764 266
---------- ------ ---------
Total Income 2,450 3,371 758
EXPENSES:
Investment Advisory Fees 2,039 1,143 273
Custodian Fees 74 255 113
Shareholder Servicing Costs 560 409 133
Reports to Shareholders 214 161 38
Federal and State Registration Fees 55 55 29
Other 37 33 14
---------- ------ ---------
Total Expenses before Involuntary Expense Waiver 2,979 2,056 600
---------- ------ ---------
Involuntary Expense Waiver by Advisor -- -- (48)
Expenses, Net 2,979 2,056 552
NET INVESTMENT INCOME (LOSS) (529) 1,315 206
REALIZED AND UNREALIZED GAIN (LOSS):
Net Realized Gain (Loss) on:
Investments 18,885 (8,859) (1,535)
Futures Contracts, Options and Forward Currency
Contracts (574) (306) (70)
Foreign Currencies 1 (178) 93
Change in Unrealized Appreciation/Depreciation on:
Investments 47,661 7,461 1,659
Futures Contracts, Options and Forward Currency
Contracts (242) (1,285) (383)
Assets and Liabilities Denominated in Foreign
Currencies -- 15 2
---------- ------ ---------
NET GAIN (LOSS) 65,731 (3,152) (234)
---------- ------ ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 65,202 ($1,837) ($ 28)
========== ====== =========
</TABLE>
See notes to financial statements.
34
<PAGE> 37
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
(In Thousands, Except Per Share Amounts)
STRONG STRONG STRONG
OPPORTUNITY FUND GROWTH FUND COMMON STOCK FUND
---------------- ----------- -----------------
<S> <C> <C> <C>
ASSETS:
Investments in Securities, at Value
(Cost of $932,625, $328,417, and $772,189,
respectively) $1,087,739 $ 382,016 $ 912,183
Receivable from Brokers for Securities and Forward
Foreign Currency Contracts Sold 5,025 -- 7,374
Dividends and Interest Receivable 969 505 478
Other 221 77 124
---------- ------------- ------------
Total Assets 1,093,954 382,598 920,159
LIABILITIES:
Payable to Brokers for Securities and Forward Foreign
Currency Contracts Purchased 3,054 3,947 2,757
Accrued Operating Expenses and Other Liabilities 1,137 405 1,079
---------- ------------- ------------
Total Liabilities 4,191 4,352 3,836
---------- ------------- ------------
NET ASSETS $1,089,763 $ 378,246 $ 916,323
========== ============= =============
Capital Shares
Authorized 100,000 10,000,000 300,000
Outstanding 34,780 27,303 47,358
NET ASSET VALUE PER SHARE $ 31.33 $ 13.85 $ 19.35
========== ============= ============
<CAPTION>
STRONG STRONG INTERNATIONAL STRONG
DISCOVERY FUND STOCK FUND ASIA PACIFIC FUND
-------------- -------------------- -----------------
<S> <C> <C> <C>
ASSETS:
Investments in Securities, at Value
(Cost of $417,378, $222,830 and $61,915,
respectively) $ 455,517 $ 216,933 $ 58,340
Receivable from Brokers for Securities and Forward
Foreign Currency Contracts Sold 14,953 61,461 5,487
Receivable for Fund Shares Sold -- 144 133
Dividends and Interest Receivable 360 755 125
Other -- 2,595 1,200
---------- ------------- ------------
Total Assets 470,830 281,888 65,285
LIABILITIES:
Payable to Brokers for Securities and Forward Foreign
Currency Contracts Purchased 8,787 61,303 6,404
Payable for Fund Shares Redeemed -- 322 1,240
Accrued Operating Expenses and Other Liabilities 538 470 177
---------- ------------- ------------
Total Liabilities 9,325 62,095 7,821
---------- ------------- ------------
NET ASSETS $ 461,505 $ 219,793 $ 57,464
========== ============= ============
Capital Shares
Authorized 1,000,000 10,000,000 10,000,000
Outstanding 25,245 17,510 6,175
NET ASSET VALUE PER SHARE $ 18.28 $ 12.55 $ 9.31
========== ============= ============
</TABLE>
See notes to financial statements.
35
<PAGE> 38
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended June 30, 1995 (Unaudited) and the Year Ended
December 31, 1994
<TABLE>
<CAPTION>
(In Thousands)
STRONG STRONG
OPPORTUNITY FUND GROWTH FUND
------------------------------ -----------------------------
JUNE 30, 1995 DEC. 31, 1994 JUNE 30, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net Investment Income (Loss) $ 4,131 $ 3,346 ($ 383) ($ 28)
Net Realized Gain (Loss) 22,157 29,481 1,516 (1,487)
Change in Unrealized Appreciation/Depreciation 105,442 (19,889) 47,080 6,495
---------- -------- -------- --------
Increase in Net Assets Resulting from Operations 131,730 12,938 48,213 4,980
CAPITAL SHARE TRANSACTIONS 163,659 383,946 224,024 101,393
DISTRIBUTIONS:
From Net Investment Income (4,142) (3,314) -- --
In Excess of Net Investment Income -- (18) -- (464)
From Net Realized Gains (7,184) (31,355) -- --
---------- -------- -------- --------
TOTAL INCREASE IN NET ASSETS 284,063 362,197 272,237 105,909
NET ASSETS:
Beginning of Period 805,700 443,503 106,009 100
---------- -------- -------- --------
End of Period $1,089,763 $805,700 $378,246 $106,009
========== ======== ======== ========
<CAPTION>
STRONG STRONG
COMMON STOCK FUND DISCOVERY FUND
------------------------------- ----------------------------
JUNE 30, 1995 DEC. 31, 1994 JUNE 30, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net Investment Income (Loss) $ 2,653 $ 2,037 ($ 529) $ 2,543
Net Realized Gain 37,035 47,778 18,312 9,276
Change in Unrealized Appreciation/Depreciation 93,955 (54,576) 47,419 (34,031)
---------- --------- -------- --------
Increase (Decrease) in Net Assets Resulting
from Operations 133,643 (4,761) 65,202 (22,212)
CAPITAL SHARE TRANSACTIONS 3,957 82,644 7,893 139,429
DISTRIBUTIONS:
From Net Investment Income (2,708) (1,963) -- (2,544)
In Excess of Net Investment Income -- (46) -- (13,712)
From Net Realized Gains (8,694) (47,835) -- (14,340)
---------- --------- -------- --------
TOTAL INCREASE IN NET ASSETS 126,198 28,039) 73,095 86,621
NET ASSETS:
Beginning of Period 790,125 762,086 388,410 301,789
---------- --------- -------- --------
End of Period $ 916,323 $ 790,125 $461,505 $388,410
========== ========= ======== ========
</TABLE>
36
<PAGE> 39
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended June 30, 1995 (Unaudited) and the Year Ended
December 31, 1994
<TABLE>
<CAPTION>
(In Thousands)
STRONG INTERNATIONAL STRONG
STOCK FUND ASIA PACIFIC FUND
------------------------------ --------------------------------
JUNE 30, 1995 DEC. 31, 1994 JUNE 30, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net Investment Income $ 1,315 $ 869 $ 206 $ 299
Net Realized Gain (Loss) (9,343) 17,932 (1,512) (73)
Change in Unrealized Appreciation/Depreciation 6,191 (27,840) 1,278 (5,276)
-------- --------- -------- -------
Decrease in Net Assets Resulting from Operations (1,837) (9,039) (28) (5,050)
CAPITAL SHARE TRANSACTIONS (35,257) 162,477 (5) 63,428
DISTRIBUTIONS:
From Net Investment Income (943) (73) (227) (34)
In Excess of Net Investment Income -- -- -- --
From Net Realized Gains -- (22,837) -- --
In Excess of Net Realized Gains -- (1,143) -- (720)
-------- --------- -------- -------
TOTAL INCREASE (DECREASE) IN NET ASSETS (38,037) 129,385 (260) 57,624
NET ASSETS:
Beginning of Period 257,830 128,445 57,724 100
-------- --------- -------- -------
End of Period $219,793 $257,830 $57,464 $57,724
======== ======== ======= =======
</TABLE>
See notes to financial statements.
37
<PAGE> 40
NOTES TO FINANCIAL STATEMENTS
June 30, 1995 (Unaudited)
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. The Funds
bear the costs, if any, associated with the disposition of restricted
securities. Where such disposition depends on a security's
registration under the Securities Act of 1933, the Fund will bear
such registration costs unless the Funds have registration rights, in
which case the issuer will bear such costs. Aggregate cost and fair
value of these restricted securities held at June 30, 1995 were as
follows:
<TABLE>
<CAPTION>
STRONG
STRONG OPPORTUNITY FUND STRONG GROWTH FUND COMMON STOCK FUND
----------------------- ------------------ -----------------
<S> <C> <C> <C>
Aggregate Cost $2,194,125 $3,299,925 $14,008,250
Aggregate Fair Value 7,276,050 3,723,375 15,640,400
Percent of Net Assets 0.7% 1.0% 1.7%
<CAPTION>
STRONG STRONG
STRONG DISCOVERY FUND INTERNATIONAL STOCK FUND ASIA PACIFIC FUND
--------------------- ------------------------ -----------------
<S> <C> <C> <C>
Aggregate Cost $770,000 $4,443,177 $3,540,085
Aggregate Fair Value 750,750 5,256,122 3,328,524
Percent of Net Assets 0.2% 2.4% 5.8%
</TABLE>
(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 may enter into futures contracts for any lawful
purpose, including hedging, risk management, or enhancing returns,
but not for speculation. Upon entering into a futures contract, the
Funds deposit cash, U.S. government securities or other liquid,
high-grade debt obligations in a segregated account with their
custodians, in the name of the futures broker through whom the
transaction was effected, equal to the minimum ''initial margin''
requirements of the applicable futures 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 the 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 may involve, to varying degrees,
elements of market risk in excess of the amount recognized in the
statements of assets and liabilities. The successful use of futures
contracts by the Funds is dependent upon the ability of Strong
Capital Management, Inc. (the "Advisor") to correctly anticipate
trends in the underlying assets of the futures contracts. To the
extent that the Funds are engaging in futures contracts other than
for hedging purposes, the Funds' successful use of such transactions
is more dependent upon the Advisor's ability to correctly anticipate
such trends, since losses in these transactions may not be offset in
gains in the Funds' portfolio or in lower purchase prices for assets
it
38
<PAGE> 41
intends to acquire. The Advisor's prediction of trends in underlying
assets may prove to be inaccurate, which could result in substantial
losses to the Funds. Hedging transactions are also subject to risks.
If the Advisor incorrectly anticipates trends in the underlying
asset, the Funds may be in a worse position than if no hedging had
occurred. In addition, there may be imperfect correlation between the
Funds' use of futures contracts and the assets being hedged.
Futures contracts open at June 30, 1995 were as follows:
<TABLE>
<CAPTION>
UNREALIZED
APPRECIATION
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: 30 S&P 500 (Short) ($ 8,207) Sept. 1995 ($4)
$290,000 Due 7/20/95
290,000 Due 7/27/95
10,000 Due 8/10/95
60,000 Due 9/21/95
Strong Common Stock Fund U.S. Treasury Bills: 50 S&P 500 (Short) (13,679) Sept. 1995 54
$635,000 Due 7/06/95
75,000 Due 8/10/95
345,000 Due 9/21/95
</TABLE>
(E) Options -- The Funds may engage in options transactions for any lawful
purpose, including hedging, risk management, or enhancing returns, but
not for speculation. The Funds may purchase or write put and call
options on securities, futures contracts, indices, and foreign
currency, and enter into closing transactions with respect to such
options to terminate an existing position.
Premiums received by the Funds upon writing put or call options are
recorded in the Funds statements 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 that is written by
the Funds expires, is exercised, or is closed, the Funds realize a
gain or loss, and the liability is eliminated. The Funds continue to
bear the risk of adverse movements in the price of the underlying
asset during the period of the option, although any potential loss
during the period would be reduced by the amount of option premium
received. The use of written option contracts may involve elements of
market risk in excess of the amount recognized in the statement of
assets and liabilities. The contract value represents the Funds'
involvement in these financial instruments. When required by SEC
guidelines, the Funds will set aside permissible liquid assets in a
segregated account to secure its potential obligations under its
written options positions.
The successful use of option contracts by the Funds is dependent upon
the ability of the Advisor to correctly anticipate trends in the
underlying assets of the option contracts. To the extend that the
Funds are engaging in option contracts other than for hedging
purposes, the Funds' successful use of such transactions is more
dependent upon the Advisor's ability to correctly anticipate such
trends, since losses in these transactions may not be offset in gains
in the Funds' portfolio or in lower purchase prices for assets it
tends to acquire. The Advisor's prediction of trends in the underlying
assets may prove to be inaccurate, which could result in substantial
losses to the Funds. Hedging transactions are also subject to risks.
If the Advisor incorrectly anticipates trends in the underlying asset,
the Funds may be in a worse position than if no hedging had occurred.
In addition, there may be imperfect correlation between the Funds' use
of option contracts and the assets being hedged.
Written option activity for Strong Common Stock Fund for the six
months ended June 30, 1995 is as follows:
<TABLE>
<CAPTION>
PREMIUMS
NUMBER (IN THOUSANDS)
------ --------------
<S> <C> <C>
Options outstanding at December 31, 1994 0 $ 0
Options written during the period 2,800 2,579
Options cancelled in closing purchase transactions (2,800) (2,579)
------- --------
Options outstanding at June 30, 1995 0 $ 0
======= ========
</TABLE>
The cost of cancelling options in closing purchase transactions was
$2,998,450, resulting in capital losses of $419,611.
(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.
39
<PAGE> 42
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1995 (Unaudited)
(G) When-Issued Securities -- The Funds 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 Funds
record purchases of when-issued securities and reflect the values of
such securities in determining net asset value in the same manner as
other portfolio securities. The Funds segregate and maintain at all
times permissible liquid assets 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.
3. NET ASSETS
Net assets as of June 30, 1995 were as follows (in thousands):
<TABLE>
<CAPTION>
STRONG STRONG STRONG COMMON
OPPORTUNITY FUND GROWTH FUND STOCK FUND
--------------- ------------- -------------
<S> <C> <C> <C>
Capital Stock $ 913,044 $325,517 $740,774
Undistributed Net Investment Loss (12) (148) (55)
Undistributed Net Realized Gain (Loss) 21,621 (698) 35,556
Net Unrealized Appreciation 155,110 53,575 140,048
---------- -------- --------
Net Assets $1,089,763 $378,246 $916,323
========== ======== ========
</TABLE>
<TABLE>
<CAPTION>
STRONG STRONG INTERNATIONAL STRONG ASIA
DISCOVERY FUND STOCK FUND PACIFIC FUND
-------------- ------------------- -------------
<C> <C> <C> <C>
Capital Stock $417,207 $236,691 $63,523
Undistributed Net Investment Income (Loss) (506) 259 (54)
Undistributed Net Realized Gain (Loss) 6,907 (9,806) (2,007)
Net Unrealized Appreciation (Depreciation) 37,897 (7,351) (3,998)
-------- -------- -------
Net Assets $461,505 $219,793 $57,464
</TABLE>
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of the Funds for the six months ended June 30, 1995
and the year ended December 31, 1994 were as follows (in thousands):
<TABLE>
<CAPTION>
JUNE 30, 1995 DECEMBER 31, 1994
-------------------------- --------------------------------
STRONG OPPORTUNITY FUND SHARES DOLLARS SHARES DOLLARS
------- ------- -------- ---------
<S> <C> <C> <C> <C>
Shares Sold 10,135 $291,828 19,268 $552,372
Shares Issued in Reinvestment of Dividends 371 10,901 1,202 33,506
Shares Redeemed (4,805) (139,070) (7,100) (201,932)
------- -------- ------- --------
Net Increase 5,701 $163,659 13,370 $383,946
======= ======== ====== ========
STRONG GROWTH FUND
Shares Sold 22,193 $274,227 12,148 $135,056
Shares Issued in Reinvestment of Dividends -- -- 44 455
Shares Redeemed (4,021) (50,203) (3,071) (34,118)
------- -------- ------- --------
Net Increase 18,172 $224,024 9,121 $101,393
======= ======== ======= ========
STRONG COMMON STOCK FUND
Shares Sold 4,508 $ 80,067 12,780 $228,135
Shares Issued in Reinvestment of Dividends 622 11,118 2,874 48,507
Shares Redeemed (4,959) (87,228) (10,938) (193,998)
------- -------- ------- --------
Net Increase 171 $ 3,957 4,716 $ 82,644
======= ======== ======= ========
STRONG DISCOVERY FUND
Shares Sold 9,153 $150,245 24,287 $415,186
Shares Issued in Reinvestment of Dividends -- -- 1,843 29,781
Shares Redeemed (8,692) (142,352) (18,065) (305,538)
------- -------- ------- --------
Net Increase 461 $ 7,893 8,065 $139,429
======= ======== ======= ========
STRONG INTERNATIONAL STOCK FUND
Shares Sold 5,347 $ 65,757 24,930 $357,479
Shares Issued in Reinvestment of Dividends 74 916 1,818 23,412
Shares Redeemed (8,291) (101,930) (15,428) (218,414)
------- -------- ------- --------
Net Increase (Decrease) (2,870) ($ 35,257) 11,320 $162,477
======= ======== ======= ========
STRONG ASIA PACIFIC FUND
Shares Sold 3,713 $ 33,762 11,796 $119,485
Shares Issued in Reinvestment of Dividends 23 215 78 729
Shares Redeemed (3,738) (33,982) (5,707) (56,786)
------- -------- ------- --------
Net Increase (Decrease) (2) ($ 5) 6,167 $ 63,428
======= ======== ======= ========
</TABLE>
40
<PAGE> 43
5. RELATED PARTY TRANSACTIONS
Strong Capital Management, Inc. (the ''Advisor''), with whom certain
officers and directors 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 six months ended
June 30, 1995 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 June 30, 1995 $928 $337 $777
Other Shareholder Servicing Expenses Paid to Advisor 21 6 18
Unaffiliated Directors' Fees 8 2 8
<CAPTION>
STRONG STRONG INTERNATIONAL STRONG
DISCOVERY FUND STOCK FUND ASIA PACIFIC FUND
-------------- -------------------- -----------------
<S> <C> <C> <C>
Payable to Advisor at June 30, 1995 $390 $267 $87
Other Shareholder Servicing Expenses Paid to Advisor 12 10 3
Unaffiliated Directors' Fees 4 5 1
</TABLE>
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 for the six months ended
June 30, 1995 with companies which are or were affiliates are as follows
(in thousands):
<TABLE>
<CAPTION>
PURCHASE SALES REALIZED DIVIDEND VALUE AT
COST COST LOSS INCOME JUNE 30, 1995
-------- ----- -------- -------- -------------
<S> <C> <C> <C> <C> <C>
Strong Common Stock Fund
Apartment Investment and Management Company $ 527 $ -- $ -- $486 $11,846
HS Resources, Inc. 3,047 -- -- -- 9,730
Software Spectrum, Inc. 30 1,181 156 -- 6,848
------ ------ ---- ---- -------
$3,604 $1,181 $156 $486 $28,424
====== ====== ==== ==== =======
Strong Discovery Fund
Saber Software Corporation $2,265 $ -- $ -- $ -- $ 2,400
</TABLE>
7. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of long-term securities during the six
months ended June 30, 1995 were as follows (in thousands):
<TABLE>
<CAPTION>
Strong Strong Strong Strong Strong International Strong
Opportunity Fund Growth Fund Common Stock Fund Discovery Fund Stock Fund Asia Pacific Fund
---------------- ----------- ----------------- -------------- -------------------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Purchases $435,260 $545,745 $265,299 $865,695 $122,888 $26,806
Sales 310,743 315,064 282,738 839,730 150,540 26,461
</TABLE>
8. INCOME TAX INFORMATION
At June 30, 1995 the investment cost, gross unrealized appreciation and
depreciation on investments and capital loss carryovers as of December 31,
1994 (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 $933,697 $330,590 $773,515
Aggregate Unrealized:
Appreciation $173,978 $ 53,974 $158,211
Depreciation (19,936) (2,572) (19,544)
-------- -------- --------
$154,042 $ 51,402 $138,667
======== ======== ========
<CAPTION>
STRONG STRONG INTERNATIONAL STRONG ASIA
DISCOVERY FUND STOCK FUND PACIFIC FUND
-------------- -------------------- ------------
<S> <C> <C> <C>
Aggregate Investment Cost $418,861 $223,870 $62,322
Aggregate Unrealized:
Appreciation $ 43,476 $14,147 $3,380
Depreciation (7,062) (21,085) (7,361)
-------- -------- --------
$36,414 ($ 6,938) ($ 3,981)
======== ========= ========
</TABLE>
41
<PAGE> 44
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1995 (Unaudited)
9. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
The Funds may enter into forward foreign currency exchange contracts for
any lawful purpose, including hedging, risk managment, or enhancing
returns, but not for speculation.
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 June 30, 1995, the Funds had entered into forward foreign currency
exchange contracts as follows:
<TABLE>
<CAPTION>
UNREALIZED
APPRECIATION
SETTLEMENT CURRENCY VALUE IN (DEPRECIATION)
FUND CURRENCY SOLD DATE USD (IN THOUSANDS) (IN THOUSANDS)
---- ------------- ---- ------------------ --------------
<S> <C> <C> <C> <C>
Strong Growth Fund 372,667 German Marks 7/26/95 $ 270 $(1)
3,341,000 German Marks 8/3/95 2,423 (23)
Strong Discovery Fund 25,050,500 German Marks 7/19/95 17,932 (235)
2,015,900 German Marks 7/26/95 1,455 (7)
Strong International Stock Fund 1,144,049,500 Japanese Yen 8/15/95 11,843 (1,739)
499,177,749 Japanese Yen 8/15/95 5,891 (36)
4,000,000,000 Indonesian Rupiah 8/28/95 1,736 (36)
3,000,000 British Pounds 10/3/95 4,782 17
3,783,699 British Pounds 10/3/95 6,032 23
6,783,699 British Pounds 7/5/95 10,990 309
Strong Asia Pacific Fund 262,900,500 Japanese Yen 8/15/95 2,722 (400)
203,818,258 Japanese Yen 8/15/95 2,405 (14)
1,000,000,000 Indonesian Rupiah 8/28/95 434 (9)
</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.
42
<PAGE> 45
11. Annual Meeting
A shareholder meeting was held on April 13, 1995 in Milwaukee, Wisconsin.
Results of the shareholder vote, calculated as a pecentage of total shares
voted, are as follows:
<TABLE>
<CAPTION>
Strong Opportunity Fund Strong Growth Fund
Shares Voted 17,259,969.150 Shares Voted 9,192,121.893
--------------------------- --------------------------
Proposals Affirmative Withhold Affirmative Withhold
--------- ----------- -------- ----------- --------
<S> <C> <C> <C> <C> <C>
1 Election of Directors
Richard S. Strong 98.41% 1.59% 98.59% 1.41%
John Dragisic 98.29 1.71 98.60 1.40
Marvin E. Nevins 98.18 1.82 98.47 1.53
Willie D. Davis 97.83 2.17 98.11 1.89
William F. Vogt 98.42 1.58 98.49 1.51
Stanley Kritzik 97.81 2.19 98.07 1.93
<CAPTION>
Affirmative Against Abstain Affirmative Against Abstain
----------- ------- ------- ----------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
2 Ratify Selection of Auditors 97.09% 0.81% 2.10% 96.54% 1.29% 2.17%
3 Adopt Advisory Agreement 93.02 2.41 4.57 94.40 2.18 3.42
4 Adopt Revised Articles 91.76 3.60 4.64 93.73 2.72 3.55
5 Amend Investment Objective 92.01 3.43 4.56 93.54 3.24 3.22
6 Amend or Adopt a Fundamental
Investment Limitation Concerning:
6A Diversification 90.73 4.02 5.25 93.63 2.33 4.04
6B Concentration 91.62 3.03 5.35 93.58 2.25 4.17
6C Lending 90.40 4.31 5.29 92.18 3.73 4.09
6D Purchasing or Selling Real Estate 89.26 5.45 5.29 91.47 4.41 4.12
6E Borrowing 89.26 5.45 5.29 91.48 4.37 4.15
6F Underwriting Securities 90.82 3.85 5.33 92.14 3.68 4.18
6G Purchasing or Selling Financial
Commodities 87.28 7.43 5.29 89.93 5.98 4.09
6H Issuing Senior Securities 91.10 3.56 5.34 92.88 2.82 4.30
6I Pooled Fund Structures 89.54 5.10 5.36 91.59 4.19 4.22
7 Eliminate a Fundamental Investment
Limitation Concerning:
7A Short Sales of Securities 87.34 5.51 7.15 N/A N/A N/A
7B Use of Margin 86.24 6.60 7.16 89.23 5.71 5.06
7C Illiquid and Restricted Securities 85.90 6.89 7.21 N/A N/A N/A
7D Purchase of Investment
Company Securities 88.52 4.31 7.17 N/A N/A N/A
7E Purchasing Securities of
Newly-Formed Issuers 88.29 4.52 7.19 N/A N/A N/A
7F Investing in Oil and Gas Interests 87.23 5.61 7.16 N/A N/A N/A
7G Pledging Assets 86.42 6.41 7.17 89.35 5.63 5.02
7H Securities Investments of
Directors and Officers 86.40 6.46 7.14 N/A N/A N/A
7I Futures and Options 86.24 6.60 7.16 N/A N/A N/A
7J Warrants 88.82 3.99 7.19 N/A N/A N/A
7K Fund Portfolio Transactions with
Directors and Officers 85.85 7.02 7.13 88.57 6.36 5.07
7L Investing in Securities for the
Purpose of Management or Control 86.55 6.28 7.17 N/A N/A N/A
7M Participating on a Joint Basis in
Any Trading Account 87.84 4.94 7.22 N/A N/A N/A
</TABLE>
43
<PAGE> 46
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1995 (Unaudited)
11. ANNUAL MEETING (CONTINUED)
<TABLE>
<CAPTION>
Strong Common Stock Fund Strong Discovery Fund
Shares Voted 26,742,893.726 Shares Voted 13,879,466.820
--------------------------- ---------------------------
Proposals Affirmative Withhold Affirmative Withhold
--------- ----------- -------- ----------- --------
<S> <C> <C> <C> <C> <C>
1 Election of Directors
Richard S. Strong 98.25% 1.75% 98.25% 1.75%
John Dragisic 98.27 1.73 98.22 1.78
Marvin E. Nevins 98.00 2.00 97.95 2.05
Willie D. Davis 97.17 2.83 97.50 2.50
William F. Vogt 98.23 1.77 98.15 1.85
Stanley Kritzik 97.24 2.76 97.48 2.52
<CAPTION>
Affirmative Against Abstain Affirmative Against Abstain
----------- ------- ------- ----------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
2 Ratify Selection of Auditors 97.19% 0.96% 1.85% 96.79% 0.99% 2.22%
3 Adopt Advisory Agreement 93.99 3.04 2.97 93.87 2.60 3.53
4 Adopt Revised Articles 92.69 4.28 3.03 92.61 3.76 3.63
5 Amend Investment Objective 93.55 3.36 3.09 92.97 3.64 3.39
6 Amend or Adopt a Fundamental
Investment Limitation Concerning:
6A Diversification 90.36 5.82 3.82 92.55 3.53 3.92
6B Concentration 93.07 3.05 3.88 93.30 2.72 3.98
6C Lending 90.54 5.57 3.89 91.35 4.63 4.02
6D Purchasing or Selling Real Estate 90.98 5.17 3.85 90.99 5.01 4.00
6E Borrowing 88.01 8.11 3.88 90.40 5.59 4.01
6F Underwriting Securities 91.83 4.25 3.92 91.91 4.08 4.01
6G Purchasing or Selling Financial
Commodities 87.81 8.31 3.88 90.10 5.91 3.99
6H Issuing Senior Securities 91.97 4.10 3.93 92.59 3.32 4.09
6I Pooled Fund Structures 90.38 5.72 3.90 91.64 4.20 4.16
7 Eliminate a Fundamental Investment
Limitation Concerning:
7A Short Sales of Securities 88.15 5.83 6.02 90.28 4.70 5.02
7B Use of Margin 86.65 7.31 6.04 89.46 5.58 4.96
7C Illiquid and Restricted Securities N/A N/A N/A 88.90 6.15 4.95
7D Purchase of Investment
Company Securities 89.27 4.68 6.05 91.32 3.62 5.06
7E Purchasing Securities of
Newly-Formed Issuers 89.27 4.70 6.03 91.19 3.77 5.04
7F Investing in Oil and Gas Interests 88.84 5.15 6.01 90.99 4.01 5.00
7G Pledging Assets 86.81 7.14 6.05 89.16 5.90 4.94
7H Securities Investments of
Directors and Officers 87.67 6.34 5.99 90.13 4.90 4.97
7I Futures and Options N/A N/A N/A 88.45 6.54 5.01
7J Warrants 90.12 3.85 6.03 91.01 3.90 5.09
7K Fund Portfolio Transactions with
Directors and Officers 86.90 7.10 6.00 89.31 5.68 5.01
7L Investing in Securities for the
Purpose of Management or Control 87.95 6.07 5.98 90.49 4.45 5.06
7M Participating on a Joint Basis in
Any Trading Account 88.51 5.44 6.05 90.72 4.23 5.05
</TABLE>
44
<PAGE> 47
<TABLE>
<CAPTION>
11. ANNUAL MEETING (CONTINUED)
STRONG INTERNATIONAL STOCK FUND STRONG ASIA PACIFIC FUND
SHARES VOTED 10,801,143.481 SHARES VOTED 3,479,907.358
-------------------------------- --------------------------
PROPOSALS AFFIRMATIVE WITHHOLD AFFIRMATIVE WITHHOLD
--------- ----------- -------- ----------- --------
<S> <C> <C> <C> <C>
1 Election of Directors
Richard S. Strong 98.01% 1.99% 97.70% 2.30%
John Dragisic 98.00 2.00 97.68 2.32
Marvin E. Nevins 97.84 2.16 97.43 2.57
Willie D. Davis 97.33 2.67 96.85 3.15
William F. Vogt 97.99 2.01 97.71 2.29
Stanley Kritzik 97.47 2.53 96.98 3.02
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN AFFIRMATIVE AGAINST ABSTAIN
----------- ------- ------- ----------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
2 Ratify Selection of Auditors 97.01% 0.96% 2.03% 96.97% 0.85% 2.18%
3 Adopt Advisory Agreement 94.42 2.48 3.10 94.46 2.49 3.05
4 Adopt Revised Articles 93.46 3.28 3.26 93.83 3.00 3.17
5 Amend Investment Objective 94.05 2.82 3.13 94.26 2.48 3.26
6 Amend or Adopt a Fundamental
Investment Limitation
Concerning:
6A Diversification 93.63 2.43 3.94 94.29 1.62 4.09
6B Concentration 93.72 2.39 3.89 94.19 1.76 4.05
6C Lending 92.10 4.02 3.88 93.20 2.80 4.00
6D Purchasing or Selling
Real Estate 91.91 4.15 3.94 92.23 3.62 4.15
6E Borrowing 91.05 5.12 3.83 92.26 3.74 4.00
6F Underwriting Securities 92.85 3.28 3.87 93.49 2.48 4.03
6G Purchasing or Selling
Financial Commodities 90.45 5.73 3.82 91.70 4.26 4.04
6H Issuing Senior Securities 92.56 3.54 3.90 93.54 2.47 3.99
6I Pooled Fund Structures 92.43 3.68 3.89 93.24 2.69 4.07
7 Eliminate a Fundamental
Investment Limitation
Concerning:
7A Short Sales of Securities 90.47 4.70 4.83 91.60 3.63 4.77
7B Use of Margin 89.65 5.62 4.73 90.52 4.66 4.82
7C Illiquid and Restricted
Securities N/A N/A N/A N/A N/A N/A
7D Purchase of Investment
Company Securities N/A N/A N/A N/A N/A N/A
7E Purchasing Securities of
Newly-Formed Issuers N/A N/A N/A N/A N/A N/A
7F Investing in Oil and Gas
Interests 90.92 4.31 4.77 N/A N/A N/A
7G Pledging Assets 89.07 6.13 4.80 90.97 4.25 4.78
7H Securities Investments of
Directors and Officers N/A N/A N/A N/A N/A N/A
7I Futures and Options N/A N/A N/A N/A N/A N/A
7J Warrants N/A N/A N/A N/A N/A N/A
7K Fund Portfolio Transactions
with Directors and Officers N/A N/A N/A N/A N/A N/A
7L Investing in Securities for
the Purpose of Management or
Control N/A N/A N/A N/A N/A N/A
7M Participating on a Joint
Basis in Any Trading
Account N/A N/A N/A N/A N/A N/A
</TABLE>
45
<PAGE> 48
FINANCIAL HIGHLIGHTS
The following presents information relating to a share of capital stock of each
of the Funds, outstanding for the entire period.
STRONG GROWTH FUND
<TABLE>
<CAPTION>
1995** 1994
-------- --------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.61 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (0.01) --
Net Realized and Unrealized Gains on Investments 2.25 1.72
------- -------
TOTAL FROM INVESTMENT OPERATIONS 2.24 1.72
LESS DISTRIBUTIONS
From Net Investment Income -- --
In Excess of Net Investment Income -- (0.11)
------- -------
TOTAL DISTRIBUTIONS -- (0.11)
------- -------
NET ASSET VALUE, END OF PERIOD $13.85 $11.61
======= =======
Total Return +19.3% +17.3%
Net Assets, End of Period (In Thousands) $378,246 $106,009
Ratio of Expenses to Average Net Assets 1.5%* 1.6%
Ratio of Net Investment Income to Average Net Assets (0.3%)* (0.1%)
Portfolio Turnover Rate 142.7% 385.8%
</TABLE>
STRONG COMMON STOCK FUND
<TABLE>
<CAPTION>
1995** 1994 1993 1992 1991 1990
------ ------- -------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.74 $ 17.94 $ 15.07 $ 12.84 $ 10.02 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) 0.06 0.04 0.04 0.03 (0.02) 0.07
Net Realized and Unrealized Gains
(Losses) on Investments 2.80 (0.13) 3.74 2.59 5.42 0.03
-------- -------- -------- -------- -------- ------
TOTAL FROM INVESTMENT OPERATIONS 2.86 (0.09) 3.78 2.62 5.40 0.10
LESS DISTRIBUTIONS
From Net Investment Income (0.06) (0.04) (0.04) (0.01) -- (0.08)
From Net Realized Gains (0.19) (1.07) (0.87) (0.38)(1) (2.58)(2) --
-------- -------- -------- -------- -------- ------
TOTAL DISTRIBUTIONS (0.25) (1.11) (0.91) (0.39) (2.58) (0.08)
-------- -------- -------- -------- -------- ------
NET ASSET VALUE, END OF PERIOD $ 19.35 $ 16.74 $ 17.94 $ 15.07 $ 12.84 $10.02
======== ======== ======== ======== ======== ======
Total Return +17.2% - 0.5% +25.2% +20.8% +57.1% +1.0%
Net Assets, End of Period (In Thousands) $916,323 $790,125 $762,086 $179,113 $ 48,549 $2,432
Ratio of Expenses to Average Net Assets 1.3%* 1.3% 1.4% 1.4% 2.0% 2.0%
Ratio of Net Investment Income to Average
Net Assets 0.6%* 0.3% 0.2% 0.1% (0.5%) 0.9%
Portfolio Turnover Rate 35.1% 83.0% 80.9% 291.7% 2,460.7% 291.2%
</TABLE>
(1) Includes $.022 ordinary income distribution for tax purposes.
(2) Ordinary income distribution for tax purposes.
* Calculated on an annualized basis.
** For the six months ended June 30, 1995 (Unaudited). Total return and
portfolio turnover rate are not annualized.
46
<PAGE> 49
FINANCIAL HIGHLIGHTS (continued)
STRONG INTERNATIONAL STOCK FUND
<TABLE>
<CAPTION>
1995** 1994 1993 1992***
-------- ------- ----- --------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.65 $ 14.18 $ 9.77 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.07 0.06 -- 0.05
Net Realized and Unrealized Gains (Losses) on Investments (0.12) (0.27) 4.66 (0.23)
------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS (0.05) (0.21) 4.66 (0.18)
LESS DISTRIBUTIONS
From Net Investment Income (0.05) (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 (0.05) (1.32) (0.25) (0.05)
------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 12.55 $ 12.65 $ 14.18 $ 9.77
======= ======== ======== =======
Total Return - 0.4% - 1.6% +47.8% - 1.8%
Net Assets, End of Period (In Thousands) $219,793 $257,830 $128,445 $12,723
Ratio of Expenses to Average Net Assets 1.8%* 1.7% 1.9% 2.0%*
Ratio of Net Investment Income to Average Net Assets 1.1%* 0.3% (0.3%) 0.8%*
Portfolio Turnover Rate 58.5% 136.5% 139.9% 25.2%*
</TABLE>
<TABLE>
<CAPTION>
STRONG ASIA PACIFIC FUND
1995** 1994
------ ----
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.35 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.03 0.05
Net Realized and Unrealized Losses on Investments (0.03) (0.57)
------- --------
TOTAL FROM INVESTMENT OPERATIONS -- (0.52)
LESS DISTRIBUTIONS
From Net Investment Income (0.04) (0.01)
In Excess of Net Investment Income -- --
From Net Realized Gains -- --
In Excess of Net Realized Gains -- (0.12)
------- --------
TOTAL DISTRIBUTIONS (0.04) (0.13)
------- --------
Net Asset Value, End of Period $ 9.31 $ 9.35
======= ========
Total Return +0.0% - 5.3%
Net Assets, End of Period (In Thousands) $57,464 $ 57,724
Ratio of Expenses to Average Net Assets 2.0%* 2.0%
Ratio of Net Investment Income to Average Net Assets 0.8%* 0.6%
Portfolio Turnover Rate 54.0% 103.3%
</TABLE>
* Calculated on an annualized basis.
** For the six months ended June 30, 1995 (Unaudited). Total return and
portfolio turnover rate are not annualized.
*** Inception date is March 4, 1992. Total return is not annualized.
47
<PAGE> 50
FINANCIAL HIGHLIGHTS (continued)
STRONG OPPORTUNITY FUND
<TABLE>
<CAPTION>
1995** 1994 1993 1992 1991 1990
------ ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 27.71 $ 28.23 $ 24.70 $21.24 $16.29 $ 19.21
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.12 0.13 0.06 0.06 0.21 0.63
Net Realized and Unrealized Gains
(Losses) on Investments 3.80 0.76 5.10 3.62 4.93 (2.77)
-------- ------ ------- ------- ------ ---------
TOTAL FROM INVESTMENT OPERATIONS 3.92 0.89 5.16 3.68 5.14 (2.14)
LESS DISTRIBUTIONS
From Net Investment Income (0.12) (0.13) (0.06) (0.06) (0.19) (0.74)
From Net Realized Gains (0.18) (1.28) (1.57) (0.16) -- (0.04)
From Capital -- -- -- -- -- --
-------- ------ ------- ------- ------ ---------
TOTAL DISTRIBUTIONS (0.30) (1.41) (1.63) (0.22) (0.19) (0.78)
-------- ------ ------- ------- ------ ---------
NET ASSET VALUE, END OF PERIOD $ 31.33 $ 27.71 $ 28.23 $ 24.70 $21.24 $ 16.29
========= ======= ========= ======== ======= ========
Total Return +14.4% +3.2% +21.2% +17.4% +31.7% -11.3%
Net Assets, End of Period (In Thousands) $1,089,763 $805,700 $443,503 $193,208 $ 159,667 $131,919
Ratio of Expenses to Average Net Assets 1.4%* 1.4% 1.4% 1.5% 1.7% 1.7%
Ratio of Net Investment Income to Average Net Assets 0.9%* 0.5% 0.2% 0.3% 1.1% 3.3%
Portfolio Turnover Rate 69.3% 59.2% 109.1% 138.5% 270.5% 275.0%
<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%
</TABLE>
<TABLE>
<CAPTION>
STRONG DISCOVERY FUND 1995** 1994 1993 1992 1991 1990
------ ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.67 $ 18.05 $ 16.01 $ 17.49 $12.51 $ 13.18
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) (0.02) 0.16 (0.01) (0.06) -- 0.27
Net Realized and Unrealized Gains
(Losses) on Investments 2.63 (1.17) 3.48 0.23 8.41 (0.63)
-------- -------- --------- ------- ------ --------
TOTAL FROM INVESTMENT OPERATIONS 2.61 (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 $ 18.28 $ 15.67 $ 18.05 $ 16.01 $ 17.49 $ 12.51
======== ======== ========= ======== ========= ========
Total Return +16.7% - 5.7% +22.2% +1.9% +67.6% - 2.7%
Net Assets, End of Period (In Thousands) $461,505 $388,410 $301,789 $193,276 $ 162,499 $56,260
Ratio of Expenses to Average Net Assets 1.5%* 1.5% 1.5% 1.5% 1.6% 1.9%
Ratio of Net Investment Income to Average Net Assets (0.3%)* 0.7% (0.2%) (0.4%) 0.0% 2.1%
Portfolio Turnover Rate 211.2% 606.1% 668.2% 1,258.6% 1,059.9% 493.9%
</TABLE>
<TABLE>
<CAPTION>
STRONG DISCOVERY FUND 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>
(1) Includes $1.50 ordinary income distribution for tax purposes.
(2) Includes $0.83 ordinary income distribution for tax purposes.
* Calculated on an annualized basis.
** For the six months ended June 30, 1995 (Unaudited). Total return and
portfolio turnover rate are not annualized.
48
<PAGE> 51
SHAREHOLDER PRIVILEGES*
TELEPHONE PURCHASE
Make additional investments into any Strong fund by calling us toll-free at
1-800-368-3863.
TELEPHONE EXCHANGE
If your financial goals change, you can exchange your investments between any
of the Strong Funds.
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 transfer from your bank checking or NOW
account to your Strong Funds account.
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.
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> 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 FUNDS LOGO]
STRONG FUNDS DISTRIBUTORS, INC.
P.O. Box 2936
Milwaukee, Wisconsin 53201