[STRONG LOGO]
THE STRONG
GROWTH FUNDS
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SEMI-ANNUAL REPORT o JUNE 30, 1999
[PICTURE OF STRONG FUNDS BUILDING]
The Strong Common Stock Fund
The Strong Discovery Fund
The Strong Growth Fund
The Strong Mid Cap Disciplined Fund
The Strong Mid Cap Growth Fund
The Strong Opportunity Fund
The Strong Strategic Growth Fund
<PAGE>
LETTER FROM THE CHAIRMAN
Dear Strong Investor,
Having just returned from a business trip to Indianapolis, I was telling a
friend that almost everywhere I went--every freeway traveled, every side street
ventured down--bulldozers, cranes and backhoes were hard at work.
Indianapolis, like most American cities we visit these days, is in the midst of
a spectacular building boom. A sea of yellow construction equipment is washing
over the nation's landscape.
It is the latest chapter in the unbelievable economic expansion that has blessed
this country--almost without pause--since 1982. The signs of prosperity are
everywhere:
o Highways jammed with people on their way to do business.
o "Help Wanted" signs in more store windows than most of us have ever
seen at one time.
o Consumer confidence is at an all-time high. Shopping carts are stuffed
with personal computers, printers, software and all sorts of related
high-tech equipment transforming the lives of Americans.
o Restaurants are packed almost every night of the week with people who
have money to spend.
We are fortunate to be living in one of the greatest economic booms in recorded
history. Likewise, we should be grateful for the opportunity to live in this
incredibly prosperous time. We should also remember that nothing lasts forever.
The nation's economic engine is running near full capacity. After eight years of
continuous growth, the American economy is beginning to overheat. It's that
strain on the system that has Mr. Greenspan's Federal Reserve, which is
responsible for managing the economy and keeping inflation at reasonable levels,
obviously concerned.
The Fed's most powerful inflation-fighting tool is its ability to manage
interest rates. Although it is a blunt instrument, raising interest rates is
very effective in rapidly slowing the rate of growth in the economy. For
example, when rates go up, it doesn't take long to see a drop in both the
construction of new homes and the refinancing of mortgage loans. Likewise, it
wouldn't be long before some of those bulldozers and backhoes in Indianapolis
were sidelined.
The Federal Reserve has an awesome responsibility. While they want the economy
to move ahead, they can't let their hopes override common sense. The Fed has
become increasingly worried about excessive valuations in the stock market and
the possibility that, left unchecked, a financial bubble could occur.
Make no mistake about it: Here at Strong, we are bullish on the long-term
prospects for America. But, in the short term, expectations of what the stock
market and the U.S. economy can continue to deliver seem inflated. For that
reason, this could be a good time to complement your portfolio's stock holdings
with more conservative money market and short-term bond funds.
/s/ Dick
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THE STRONG
GROWTH
FUNDS
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SEMI-ANNUAL REPORT o JUNE 30, 1999
TABLE OF CONTENTS
INVESTMENT REVIEW
The Strong Common Stock Fund ....................................2
The Strong Discovery Fund .......................................4
The Strong Growth Fund ..........................................6
The Strong Mid Cap Disciplined Fund .............................8
The Strong Mid Cap Growth Fund .................................10
The Strong Opportunity Fund ....................................12
The Strong Strategic Growth Fund ...............................14
FINANCIAL INFORMATION
Schedules of Investments in Securities .........................16
Statements of Assets and Liabilities ...........................27
Statements of Operations .......................................28
Statements of Changes in Net Assets ............................29
Notes to Financial Statements ..................................33
FINANCIAL HIGHLIGHTS ................................................37
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THE STRONG COMMON STOCK FUND
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FUND
HIGHLIGHTS
o For the six-month period ending June 30, 1999, the Strong Common Stock Fund
returned 19.73%.(1)
o Media/cable stocks continued to be strong performers as consolidation
highlighted the demand for the services of the cable industry.
o Energy stocks rebounded nicely as world economies began to bounce back and
more stringent OPEC monitoring of oil sales allowed for strong stock
performance. Other stocks that benefit from increased oil prices followed
suit.
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AVERAGE ANNUAL
TOTAL RETURNS(1)
As of 6-30-99
1-year 17.89%
3-year 20.86%
5-year 20.99%
Since Inception 20.81%
(on 12-29-89)
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FIVE LARGEST
STOCK HOLDINGS
As of 6-30-99
SECURITY % OF NET ASSETS
Nabors Industries, Inc. 2.0%
MediaOne Group, Inc. 1.9%
Unifi, Inc. 1.9%
AT&T Corporation--
Liberty Media Group Class A 1.8%
Apache Corporation 1.8%
Please see the Schedule of Investments
in Securities for a complete listing of
the Fund's portfolio.
PERSPECTIVES
FROM THE MANAGER
/s/ Richard Trent Weiss
Richard Trent Weiss
Portfolio Manager
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During the first half of 1999, the Fund benefited from an up-tick in
international economies. A rebound in the price of crude oil from $11 to $19
ignited a rally in stocks that either directly or indirectly earn greater
profits as crude prices rise. The increase in oil prices related to a general
pickup in Southeast Asian and Latin American economies, and to greater efforts
by OPEC to monitor oil sales. We remain optimistic that oil prices will hold in
the second half of 1999 and are maintaining our positions in this area.
Cable/media stocks also continued their solid run as consolidation further drove
gains in this group, although we reduced overweighted positions in this group as
valuations approached private value levels. Individual stocks that performed
best were DoubleClick, MediaOne, Morton International, Intermedia
Communications, and Smith International.
Two sectors that lagged somewhat in the first half were healthcare services and
financials. Healthcare stocks were severely impacted by reimbursement cuts
initiated by the Balanced Budget Amendment of 1997. Although returns in this
sector have come more slowly than we would like, we are optimistic that these
stocks represent good value as companies can now grow off a new earnings base.
Financial stocks also lagged as investors anticipated an increase in short-term
interest rates and priced in an expected slowdown in earnings and
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IT ALSO APPEARS
THAT SMALLER-CAP
STOCKS HAVE REACHED
A POINT WHERE
THEY WILL PERFORM
BETTER RELATIVE
TO LARGER STOCKS
GOING FORWARD.
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1 Average annual total return and total return measure change in the value of
an investment in the Fund, assuming reinvestment of all dividends and
capital gains. Average annual total return reflects annualized change while
total return reflects aggregate change, and is not annualized.
2
<PAGE>
growth. We increased our underweighted position in financial stocks toward the
end of the second quarter when valuations adequately reflected lowered earnings
expectations.
Looking ahead, we also believe that select technology stocks represent good
value. Some technology companies are starting to suffer from fears that business
will dramatically decline as corporations reduce technology budgets until next
year due to Year 2000 concerns. Consequently, we are adding software stocks when
we identify attractively valued companies with long-term competitive advantage
in the space they play.
For the second half of 1999, we believe that the world economic situation will
continue to improve, although at a slow rate. Given this scenario, we continue
to like the energy sector and select cyclicals. We believe that smaller-cap
stocks have reached a point where they will perform better relative to larger
stocks going forward. Smaller stocks are now selling at a 6-point P/E discount
to the largest 50 stocks in the S&P 500, while the historical average over the
last 23 years is a 1-point discount.
We thank you for investing in the Strong Common Stock Fund, and look forward to
continuing to help you achieve your financial goals.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 12-29-89 to 6-30-99
[GRAPH]
THE STRONG COMMON Russell Lipper Growth
STOCK FUND 2000(R) Index* Funds Index*
12-89 10,000 10,000 10,000
12-91 15,864 11,756 12,895
12-93 23,988 16,552 15,541
12-95 31,609 20,873 20,292
12-97 47,223 29,753 30,536
6-99 60,272 31,688 42,945
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of the
Russell 2000(R) Index and the Lipper Growth Funds Index. Results include the
reinvestment of all dividends and capital gains distributions. Performance is
historical and does not represent future results. Investment returns and
principal value will vary, and you may have a gain or loss when you sell shares.
- --------------------------------------------------------------------------------
* The Russell 2000(R) Index is an unmanaged index generally representative of
the U.S. market for small capitalization stocks. The Lipper Growth Funds
Index is an equally-weighted performance index of the largest qualifying
funds in this Lipper category. The Russell 2500TM Index is an unmanaged
index generally representative of the U.S. market for small to medium-small
capitalization stocks. The S&P 500 Stock Index is an unmanaged index
generally representative of the U.S. stock market. Source of the Russell
index data is Standard & Poor's Micropal. Source of the Lipper index data
is Lipper Inc.
YOUR FUND'S
APPROACH
THE STRONG COMMON STOCK FUND INVESTS IN SMALL-CAP STOCKS THAT APPEAR UNDERVALUED
OR NEGLECTED BY WALL STREET ANALYSTS, BUT POSSESS SUPERIOR LONG-TERM GROWTH
POTENTIAL. AT THE CORE OF OUR INVESTMENT PHILOSOPHY IS THE "PRIVATE MARKET
METHODOLOGY." THIS APPROACH ALLOWS US TO DETERMINE WHAT WE BELIEVE TO BE THE
TRUE ECONOMIC VALUE OF A COMPANY--OR THE PRICE A BUYER WOULD PLACE ON THE WHOLE
COMPANY. BY ANALYZING THE COMPETITIVE ADVANTAGES OF A COMPANY AND BY JUDGING THE
ABILITY OF MANAGEMENT TO EFFECTIVELY CARRY OUT ITS CORPORATE VISION, WE ARE ABLE
TO DETERMINE THE TRUE ECONOMIC VALUE OF THE FIRM AND QUANTIFY THE RISK/REWARD
CHARACTERISTICS OF INDIVIDUAL STOCKS.
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MARKET
HIGHLIGHTS
o The Russell 2500TM Index returned 10.88% for the six month period ended
June 30, 1999.*
o An acceleration in the world economies allowed smaller-cap stocks, whose
earnings are more sensitive to cyclical swings, to perform strongly during
the first half of the year.
o The U.S. economy remained strong, although the Federal Reserve Board's move
to increase short-term interest rates in June could signal a generally
tighter monetary policy which may eventually slow earnings growth.
o In the second quarter, the Russell 2000(R) Index of small-cap stocks gained
15.55% versus 7.05% on the S&P 500 Index.* The rebound followed a long
period of under-performance in small caps from mid-1996 through December
1998.
3
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THE STRONG DISCOVERY FUND
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FUND
HIGHLIGHTS
o The Strong Discovery Fund returned -5.00% for the six months ended June 30,
1999.(1)
o As of June 30, 1999, the Fund was invested in companies with an expected
earnings growth rate of 21%.(2) On-site meetings with management confirmed
that the vast majority of the Fund's holdings are on track to achieve their
profit targets.
o The Fund emphasized dependable growth companies as a precautionary measure
against a potential slowdown in the U.S. economy, which could result from
the recent rise in interest rates.
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AVERAGE ANNUAL
TOTAL RETURNS(1)
As of 6-30-99
1-year -5.63%
3-year 5.26%
5-year 10.30%
10-year 11.15%
Since Inception 14.10%
(on 12-31-87)
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FIVE LARGEST
STOCK HOLDINGS
As of 6-30-99
SECURITY % OF NET ASSETS
AT&T Corporation 4.4%
Central Garden & Pet Co. 4.1%
Sykes Enterprises, Inc. 3.0%
Chancellor Media Corporation 2.6%
ITT Educational Services, Inc. 2.6%
Please see the Schedule of Investments
in Securities for a complete listing of
the Fund's portfolio.
PERSPECTIVES
FROM THE MANAGERS
/s/Richard S. Strong /s/Chip Paquelet
Richard S. Strong Chip Paquelet
Portfolio Co-manager Portfolio Co-manager
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This year began with a continuation of the market trends that persisted over the
past few years. Large company stocks, and more recently Internet stocks,
performed extraordinarily well while most stocks lost ground. By April, however,
the chronic underperformance of small- and medium-sized company shares staged a
turnaround. Investors are finally beginning to recognize the attractive
valuation and growth opportunities present in the small-cap sector.
The Discovery Fund's performance mirrored this trend--a rough January-March
followed by an improvement in the second quarter. Unfortunately, by mid-year our
performance had fallen short of our broad-based benchmark, the Russell 2000(R)
Index, and we gave back the outperformance we achieved in 1998.
No single issue explains Discovery's disappointing start in 1999. Rather, it was
the culmination of several factors:
o Large declines in a few of our holdings, although the Fund's broad
diversification diluted their impact.
o Insufficient technology exposure, particularly Internet stocks. At June 30,
1999, 23.1% of the portfolio was invested in technology. In addition, our
focus on companies with proven management and records limited our exposure
to the scores of Internet start-ups, recently the strongest sector of the
market.
o Lack of big winners. While you expect some investments to disappoint, you
also expect to
-------------------------------------
WHILE THE PORTFOLIO
HAD A NUMBER OF
INDIVIDUAL INVEST-
MENTS WITH GOOD
GAINS OVER THE PAST
TWO QUARTERS, WE DID
NOT HAVE OUR COM-
PLEMENT OF STOCKS THAT
SHOT THE LIGHTS OUT.
-------------------------------------
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1 Average annual total return and total return measure change in the value of
an investment in the Fund, assuming reinvestment of all dividends and
capital gains. Average annual total return reflects annualized change while
total return reflects aggregate change, and is not annualized.
2 Earnings growth has been estimated on an annual basis for a projected
five-year period. The Discovery Fund's earnings growth estimate has been
generated from our own analysis of the portfolio's individual securities as
of June 30, 1999. The earnings growth projection for the S&P 500 has been
based on a consensus of earnings estimates from six Wall Street investment
firms as shown by Bloomberg dated June 30, 1999.
4
<PAGE>
more than offset them with stocks that surprise on the upside. While the
portfolio had a number of individual investments with good gains over the past
two quarters, we did not have our complement of stocks that shot the lights out.
On the positive side, in February and March we increased the Fund's energy
exposure just prior to the recovery in oil prices. We also made several
investments in cable companies as a way of capturing the growth of the Internet
to the residential market.
Looking forward, we plan to emphasize those sectors of the market with the
greatest growth potential, including technology, consumer products/services, and
healthcare. We also intend to continue capitalizing on turning points in other
industries, such as energy. As in the past, individual company research,
including on-site visits with management, will continue to be an integral part
of our investment process.
Please understand that, above all else, we value and appreciate the enormous
trust you have invested in us. We absolutely abhor having to report poor results
to you. And, rest assured, we have every intention of improving the job we do on
your behalf. We will keep you posted.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 12-31-87 to 6-30-99
[GRAPH]
THE STRONG Russell Lipper Capital
DISCOVERY FUND 2000(R) Index* Appreciation Funds Index*
12-87 10,000 10,000 10,000
12-89 15,428 14,518 14,479
12-91 25,151 17,068 18,366
12-93 31,333 24,031 22,865
12-95 39,885 30,303 29,350
12-97 44,825 43,196 40,477
6-99 45,584 46,005 55,838
This graph, prepared in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of the
Russell 2000(R) Index and the Lipper Capital Appreciation Funds Index. Results
include the reinvestment of all dividends and capital gains distributions.
Performance is historical and does not represent future results. Investment
returns and principal value will vary, and you may have a gain or loss when you
sell shares.
- --------------------------------------------------------------------------------
* The Russell 2000(R) Index is an unmanaged index generally representative of
the U.S. market for small capitalization stocks. The Lipper Capital
Appreciation Funds Index is an equally-weighted performance index of the
largest qualifying funds in this Lipper category. Source of the Russell
index data is Standard & Poor's Micropal. Source of the Lipper index data
is Lipper Inc.
YOUR FUND'S
APPROACH
THE STRONG DISCOVERY FUND SEEKS TO PROVIDE INVESTORS WITH CAPITAL GROWTH, A GOAL
WE PURSUE BY INVESTING IN A DIVERSIFIED PORTFOLIO OF SMALL-, MEDIUM-, AND
LARGER- SIZE COMPANIES. OUR INVESTMENT APPROACH COMBINES NUMBER-CRUNCHING
ANALYSIS WITH DIRECT RESEARCH, INCLUDING ON-SITE VISITS. THROUGH FREQUENT
DISCUSSIONS WITH MANAGEMENT, SUPPLIERS, CUSTOMERS AND COMPETITORS, WE BELIEVE WE
CAN IDENTIFY VITAL ASPECTS OF COMPANIES THAT ARE NOT REFLECTED IN THEIR
HISTORICAL FINANCIAL STATEMENTS OR THEIR STOCK PRICES.
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MARKET
HIGHLIGHTS
o In the second quarter of 1999, small-cap stocks staged a comeback following
three years of significant underperformance.
o Large-cap valuations are at historically high levels while small-cap
valuations remain reasonable.
o Corporate profitability is picking up following several years of anemic
growth. Earnings for the companies in the S&P 500 Index are expected to
advance 15% in 1999, compared to just a 4.5% average annual gain over the
past three years.(2)
o The U.S. economy remains remarkably healthy in spite of global economic
challenges and, recently, higher interest rates.
5
<PAGE>
========
THE STRONG GROWTH FUND
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FUND
HIGHLIGHTS
o The Strong Growth Fund returned 15.88% for the six-month period ended June
30, 1999.(1) In response to the excessive valuations of large-cap stocks,
the Fund moved more aggressively into medium-cap companies.
o The Fund continued to hold core holdings that have demonstrated solid
performance and reduced holdings in drug companies.
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AVERAGE ANNUAL
TOTAL RETURNS(1)
As of 6-30-99
1-year 26.49%
3-year 21.23%
5-year 26.62%
Since Inception 25.33%
(on 12-31-93)
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FIVE LARGEST
STOCK HOLDINGS
As of 6-30-99
SECURITY % OF NET ASSETS
Cisco Systems, Inc. 4.3%
Kohl's Corporation 3.2%
MCI WorldCom, Inc. 2.7%
Uniphase Corporation 2.6%
Tyco International, Ltd. 2.2%
Please see the Schedule of Investments
in Securities for a complete listing of
the Fund's portfolio.
PERSPECTIVES
FROM THE MANAGER
/s/ Ronald C. Ognar
Ronald C. Ognar
Portfolio Manager
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I often answer shareholder questions about the Strong Growth Fund, so I've
decided to report to you from the perspective of an investor. As I am a
shareholder myself, it isn't too hard.
Yes, Harriet, the Strong Growth Fund is an all-cap growth fund, and I see that
the managers at Strong did move more aggressively into medium-cap companies as
the valuations in the larger companies became too expensive. And I'm glad to see
they kept cashing in their chips on more of those Internet stocks that kept
running up. I knew those stocks were getting ahead of the fundamentals. I'm glad
to see that someone pays attention to valuation along with trying to invest in
companies with the strongest earnings and revenue growth.
Let's see--they took the weighted median market cap down to $8.43 billion from
$9.7 billion while still keeping the best of their core large companies like
Cisco Systems, Tyco International, Lucent, Home Depot, and Microsoft. They
lowered their drug company holdings but still avoided big consumer staple
companies because of weaker earnings and prospects. And good--they are very
light in financial stocks with the upturn in interest rates.
Gee Harriet, I'm going to read further and see where Ron and his team made their
new investments and see what other themes are working this year. Okay, they
added to biotech stocks and stayed with their strong U.S.
-------------------------------------
...THE MANAGERS AT
STRONG DID MOVE
MORE AGGRESSIVELY
INTO MEDIUM-CAP
COMPANIES AS THE
VALUATIONS IN THE
LARGER COMPANIES
BECAME TOO EXPENSIVE.
-------------------------------------
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1 Average annual total return and total return measure change in the value of
an investment in the Fund, assuming reinvestment of all dividends and
capital gains. Average annual total return reflects annualized change while
total return reflects aggregate change, and is not annualized.
6
<PAGE>
consumer-spending theme, but switched from drug stores (high valuation) and
supermarkets to more consumer electronics like Best Buy, Circuit City and Tandy.
They thought the economy was gaining strength and consumers were getting early
tax refunds that were 14% higher than last year and teenagers were becoming a
bigger factor in retail sales, with everyone working and the stock market still
adding wealth. U.S. consumers spend when they feel safe and they get more
dollars in their pockets. They said it was time to get more growth cyclical
exposure in the portfolio.
The Strong Growth Fund is 5 1/2 years old now and performance since inception is
compounding at 25.33%, just like the earnings growth rate for the average stock
they own (and they mean forward looking earnings). And still no down
years--that's the consistency that they keep striving for. They still like the
telecom equipment theme and they are using the same rationale for the Internet
sector. The suppliers and builders of the infrastructures are the place to be
over the long term.
Ron thanks everyone for believing in his team and investing in the Growth Fund
as part of their financial plans. They remain committed to doing their best to
helping us attain our long-term financial goals.
I'll look forward to speaking with you again in six months.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 12-31-93 to 6-30-99
[GRAPH]
THE STRONG S&P 500 Lipper Growth
GROWTH FUND Stock Index* Funds Index*
12-93 10,000 10,000 10,000
12-94 11,727 10,132 9,843
12-95 16,535 13,940 13,057
12-96 19,763 17,140 15,346
12-97 23,528 22,859 19,648
12-98 29,877 29,391 24,696
6-99 34,622 33,030 27,632
This graph, prepared in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of the
Standard & Poor's 500 Stock Index ("S&P 500") and the Lipper Growth Funds Index.
Results include the reinvestment of all dividends and capital gains
distributions. Performance is historical and does not represent future results.
Investment returns and principal value vary, and you may have a gain or loss
when you sell shares.
- --------------------------------------------------------------------------------
* The S&P 500 is an unmanaged index generally representative of the U.S.
stock market. The Lipper Growth Funds Index is an equally-weighted
performance index of the largest qualifying funds in this Lipper category.
The Growth Index is comprised of 50% S&P/Barra 500 Growth Index and 50%
S&P/Barra MidCap 400 Growth Index. The S&P/Barra 500 Growth Index is an
unmanaged index generally representative of the U.S. market for growth
stocks. The S&P/Barra MidCap 400 Growth Index is an unmanaged index
generally representative of the U.S. market for medium capitalization
growth stocks. Source of the S&P index data is Standard & Poor's Micropal.
Source of the Lipper index data is Lipper Inc.
YOUR FUND'S
APPROACH
THE STRONG GROWTH FUND IS DESIGNED TO SERVE AS A CORE EQUITY HOLDING IN
INVESTORS' PORTFOLIOS BY INVESTING IN GROWTH STOCKS OF ALL SIZES. THE MANAGER
CHOOSES INVESTMENTS BY CAREFULLY RESEARCHING COMPANIES, ONE AT A TIME, PAYING
CLOSE ATTENTION TO THEIR VALUATIONS AND THE LONG-TERM THEMES OF THEIR
BUSINESSES. THE FUND IS FLEXIBLE ENOUGH TO MOVE OUT OF WHAT THE MANAGER BELIEVES
ARE DANGEROUS SECTORS AND CAPITALIZATION AREAS IN AN EFFORT TO PROTECT
SHAREHOLDERS' INVESTMENTS. ONCE THESE STOCKS ARE SOLD, THE MANAGER MOVES THE
FUND TO POTENTIALLY MORE PROMISING INVESTMENT TERRITORY.
- --------------------------------------------------------------------------------
MARKET
HIGHLIGHTS
o The Fund's benchmark, the Growth Index, returned 9.50%, and the S&P 500
Stock Index returned 12.38% during the period.*
o The strong consumer, driven by confidence in the U.S. economy, low
unemployment, higher tax refunds, and the influence of teenage spending,
continued to be an important player in the markets.
o The U.S. economy continued to show considerable strength, prompting the
Federal Reserve to address inflationary concerns by raising interest rates
by one quarter of a point at the end of the reporting period.
o The U.S. market broadened to include more cyclical and smaller companies.
7
<PAGE>
=====================
THE STRONG MID CAP DISCIPLINED FUND
- ---------------------------------=====================--------------------------
FUND
HIGHLIGHTS
o The Strong Mid Cap Disciplined Fund returned 28.80% for the six months
ended June 30, 1999.(1) The Fund benefited from some takeovers of stocks in
the portfolio. These takeovers valued the companies at substantial premiums
to their public share prices.
o The fund also benefited from a relatively large exposure to energy and
consumer stocks. As energy prices have rebounded, they have brought the
prices of most energy stocks along with them. Consumer prosperity in the
strong economic environment has boosted retail issues.
- ---------------------------------------
TOTAL RETURN(1)
As of 6-30-99
Since Inception 28.80%
(on 12-31-98)
- ---------------------------------------
TOP FIVE SECTORS
As of 6-30-99
SECTOR % OF NET ASSETS
Retail 14.7%
Financial 13.5%
Consumer Cyclical 13.3%
Technology 13.0%
Energy 9.5%
Please see the Schedule of Investments
in Securities for a complete listing of
the Fund's portfolio.
PERSPECTIVES
FROM THE MANAGER
/s/Dean DuMontier
Dean DuMonthier
Portfolio Manager
- --------------------------------------------------------------------------------
Greetings shareholders! It is a pleasure to write the first of what will
hopefully be many semi-annual communications between us. In addition to
providing an update on the Fund and its positioning, in the limited space
available I will attempt to add some interesting thoughts/topics from my
experiences in the period. Hopefully you will find these communications
interesting and educational as well as informative.
A combination of good stock selection and some good luck produced solid returns.
Four companies in the portfolio were acquired by other companies over the past
six months; in each case, the acquiring company offered a substantial premium.
Although we don't buy stocks with a takeout in mind, it's always a nice surprise
to realize a gain so quickly. The prices paid indicate that we purchased the
stocks well below their intrinsic values.
The Fund also benefited from its position in energy stocks. Oil prices began the
year at around $12 and finished the period closer to $20. OPEC, the Organization
of Petroleum Exporting Countries, decided to limit the supply of oil by simply
not producing as much so that the price of oil would rebound. OPEC is like a
union of oil producers that go "on strike" when prices get too low. We
anticipated OPEC's production cuts, and purchased a few oil producers as well as
a few oil-service providers.
In addition to our winners, we've had some challenging holdings. Our healthcare
services stocks have been bogged down by the regulation and increased scrutiny
of the Federal Government. Despite lower share prices we still like these
-------------------------------------
A COMBINATION OF
GOOD STOCK SELECTION
AND SOME GOOD
LUCK PRODUCED
SOLID RETURNS.
-------------------------------------
- --------------------------------------------------------------------------------
1 Total Return is not annualized and measures aggregate change in the value
of an investment in the Fund, assuming reinvestment of dividends and
capital gains.
8
<PAGE>
companies: we all need the products they produce, and with the America's
population aging, demand should only go up from here.
One topic seemingly on everyone's mind is Internet stocks. As value- oriented
investors, we do not own pure Internet stocks. We believe it's difficult to
gauge and manage downside risk with companies that don't make money, and aren't
expected to anytime soon. However, the Internet is transforming many businesses,
so there are numerous indirect ways to benefit from its impact on the "physical"
world. When railroads transformed the transportation system decades ago, most of
the economic wealth created by the more efficient transcontinental transport
went to the businesses that utilized the system as opposed to the railroad
companies themselves. Many more non-Internet businesses are able to access new
markets and operate more efficiently as a result of the Internet. We are on
constant watch for these companies as investments.
For example, the Fund has a position in CNF Transportation, a trucking company
that delivers Priority Mail for the U.S. Postal Service. Much of the merchandise
purchased on the Internet is sent by Priority Mail, sparking demand for this
delivery service. Without paying Internet valuations, the Fund can thus
participate in Internet-driven upside earnings potential.
Thank you for your interest and support.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 12-31-98 to 6-30-99
[GRAPH]
THE STRONG MID S&P MidCap 400 Lipper Mid Cap
CAP DISCIPLINED FUND Stock Index* Funds Index*
12-98 10,000 10,000 10,000
1-99 10,470 9,611 10,269
2-99 10,140 9,107 9,630
3-99 11,740 9,362 10,078
4-99 12,640 10,100 10,512
5-99 12,640 10,144 10,529
6-99 12,880 10,687 11,190
This graph, prepared in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of the
Standard & Poor's MidCap 400 Stock Index ("S&P MidCap 400") and the Lipper Mid
Cap Funds Index. Results include the reinvestment of all dividends and capital
gains distributions. Performance is historical and does not represent future
results. Investment returns and principal value vary, and you may have a gain or
loss when you sell shares.
- --------------------------------------------------------------------------------
* The S&P MidCap 400 is an unmanaged index generally representative of the
U.S. market for medium capitalization stocks. The Lipper Mid Cap Funds
Index is an equally-weighted performance index of the largest qualifying
funds in this Lipper category. Source of the S&P index data is Standard &
Poor's Micropal. Source of the Lipper index data is Lipper Inc.
YOUR FUND'S
APPROACH
THE STRONG MID CAP DISCIPLINED FUND INVESTS PRIMARILY FOR CAPITAL APPRECIATION
USING A BOTTOM-UP APPROACH TO SELECTING MID-SIZE STOCKS. MEDIUM-SIZE FIRMS ARE
GENERALLY ABLE TO GROW FASTER THAN LARGE COMPANIES, BUT THEIR STOCK PRICES ARE
LESS VOLATILE THAN THOSE OF MANY SMALLER COMPANIES. WE LOOK FOR STOCKS TRADING
BELOW THEIR INTRINSIC VALUE, BASED ON AN ANALYSIS OF THE COMPANY'S COMPETITIVE
ADVANTAGES. WE USE CASH FLOW AS THE PRIMARY VALUATION TOOL, AS IT PROVIDES A
MORE STABLE MEASURE OF COMPANY PERFORMANCE THAN EARNINGS. WE STRIVE TO INVEST
WITH GOOD UPSIDE POTENTIAL WHILE MANAGING THE DOWNSIDE RISK INHERENT IN EACH
INVESTMENT.
- --------------------------------------------------------------------------------
MARKET
HIGHLIGHTS
o The S&P MidCap 400 Stock Index returned 6.87% for the six months ended June
30, 1999.*
o Small- and mid-size stocks lagged large stocks dramatically in the first
quarter, then rebounded strongly in the second quarter. Many key foreign
economies recovered, lending credibility to projections of prolonged
cyclical strength.
o The Federal Reserve Board raised interest rates, addressing concerns
regarding possible inflationary pressures from continued rapid economic
growth. This hike slowed the relative outperformance of mid-cap stocks at
the very end of the six-month period.
o Mid-cap stocks with a value orientation have not performed as well as those
with more of a growth orientation. Specifically, technology issues
performed very well in the period.
9
<PAGE>
================
THE STRONG MID CAP GROWTH FUND
- -----------------------------------================-----------------------------
FUND
HIGHLIGHTS
o Ronald Ognar and Derek Felske assumed portfolio management responsibility
of the Fund on January 31, 1999. Reflecting their investment philosophy,
the Fund's technology exposure was increased.
o The Fund returned 27.17% for the six months ended June 30, 1999.(1)
o Technology, energy service and consumer cyclical (principally retailers)
holdings provided strong relative performance for the Fund, while
interest-sensitive and healthcare holdings hurt performance.
- ---------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS(1)
As of 6-30-99
1-year 25.63%
Since Inception 22.41%
(on 12-31-96)
- ---------------------------------------
TOP FIVE SECTORS
As of 6-30-99
SECTOR % OF NET ASSETS
Technology 55.9%
Retail 11.8%
Financial 11.7%
Energy 9.2%
Healthcare 4.0%
Please see the Schedule of Investments
in Securities for a complete listing of
the Fund's portfolio.
PERSPECTIVES
FROM THE MANAGERS
/s/Ronald C. Ognar /s/ Derek Felske
Ronald C. Ognar Derek Felske
Portfolio Co-Manager Portfolio Co-Manager
- --------------------------------------------------------------------------------
In January 1999, upon assuming management of the Strong Mid Cap Growth Fund, we
modified the investment philosophy by increasing the Fund's focus on dominant
companies led by high-quality management teams in industries with dynamic growth
potential.
The Fund's renewed emphasis on high-quality growth companies has resulted in
significant increases in our technology and consumer cyclical weightings. The
growth of the Internet and the use of technology investment as a competitive
weapon has resulted in a boom, with leading venture capitalists, Internet
entrepreneurs, and CEOs on the covers of general interest publications. Although
levels of high enthusiasm are often symptomatic of a market top, it is hard to
quarrel with the underlying fundamentals. Our investments are concentrated in
companies who will benefit from the growth of the networked economy, who
manufacture connectivity devices and who provide the building blocks for the
Internet. While we continue to believe in the enormous promise of selected pure
Internet plays, we have substantially reduced our holdings in the portfolio as
they reached, and in most cases, substantially exceeded our price objectives.
In consumer cyclicals, we continue to overweight retailers and
telecommunications companies. One area where we are becoming increasingly
optimistic is energy. In 1998, the deflationary impact of the Asian crises,
coupled with an unusually
-------------------------------------
THE FUND'S RENEWED
EMPHASIS ON HIGH-
QUALITY GROWTH
COMPANIES HAS
RESULTED IN SIGNIFICANT
INCREASES IN OUR
TECHNOLOGY AND
CONSUMER CYCLICAL
WEIGHTINGS.
-------------------------------------
- --------------------------------------------------------------------------------
1 Average annual total return and total return measure change in the value of
an investment in the Fund, assuming reinvestment of all dividends and
capital gains. Average annual total return reflects annualized change while
total return reflects aggregate change, and is not annualized.
10
<PAGE>
mild winter, led to sharply lower oil prices. Now, with relative valuations
extremely attractive and signs of a rebound in pricing and drilling activity
present, we have made a substantial investment in the sector. Thus far, the
underlying fundamentals appear to be improving: OPEC members are over 90%
compliant with announced production quotas and economic conditions in Asia
appear to have stabilized.
We are quite pleased with the performance of the Fund thus far. In our view,
mid-cap growth stocks offer attractive return potential. Unlike their larger-cap
brethren, they are often pure plays on dynamic niche markets, new products
cycles or innovative new services. As growth investors, our investment team is
constantly on the lookout for companies exhibiting sustainable, fundamental
improvement.
As we assess the next six months, we expect the U.S. economy to continue to
grow, albeit at a slightly more moderate pace. Although we believe that Y2K
concerns are overstated, the possibility of very short-term economic
dislocations is likely, and we plan to take advantage of any consequent
volatility in an opportunistic manner.
We thank you for your investment in the Strong Mid Cap Growth Fund, and look
forward to helping you meet your financial goals.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 12-31-96 to 6-30-99
[GRAPH]
THE STRONG MID S&P MidCap 400 Lipper Mid Cap
CAP GROWTH FUND Stock Index* Funds Index*
12-96 10,000 10,000 10,000
6-97 10,104 11,299 10,808
12-97 11,385 13,225 11,746
6-98 13,196 14,367 13,180
12-98 13,035 15,753 13,381
6-99 16,577 16,836 14,974
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of the
Standard & Poor's MidCap 400 Stock Index ("S&P MidCap 400") and the Lipper Mid
Cap Funds Index. Results include the reinvestment of all dividends and capital
gains distributions. Performance is historical and does not represent future
results. Investment returns and principal value vary, and you may have a gain or
loss when you sell shares.
- --------------------------------------------------------------------------------
* The S&P MidCap 400 is an unmanaged index generally representative of the
U.S. stock market for medium capitalization stocks. The Lipper Mid Cap
Funds Index is an equally-weighted performance index of the largest
qualifying funds in this Lipper category. Source of the S&P index data is
Standard & Poor's Micropal. Source of the Lipper index data is Lipper Inc.
YOUR FUND'S
APPROACH
THE STRONG MID CAP GROWTH FUND SEEKS LONG-TERM CAPITAL GROWTH BY INVESTING IN
WELL-MANAGED GROWTH COMPANIES. THE MAJORITY OF THE FUND'S HOLDINGS WILL BE IN
COMPANIES HAVING MARKET CAPITALIZATIONS BETWEEN $800 MILLION AND $8 BILLION AT
THE TIME OF PURCHASE.
- --------------------------------------------------------------------------------
MARKET
HIGHLIGHTS
o After several years of unusually strong large-cap relative performance, the
return differential between larger companies and their smaller counterparts
began to close during the first half of 1999, particularly in the second
quarter.
o The Lipper Mid Cap Funds Index gained 11.90% and the S&P MidCap 400 Stock
Index returned 6.87% for the six months ended June 30, 1999.*
o The market's broader-based advance is a positive development, suggesting
that solid, fundamentally-driven stock picking--not indexing--will be
rewarded.
o The Federal Reserve's decision to hike short-term interest rates resulted
in a volatile market in the second quarter.
o Earnings growth has begun to re-accelerate as fears of a significant
slowdown in corporate profits proved unfounded.
11
<PAGE>
=============
THE STRONG OPPORTUNITY FUND
- -------------------------------------=============------------------------------
FUND
HIGHLIGHTS
o For the six months ended June 30, 1999, the Strong Opportunity Fund
returned 18.90%.(1)
o The Fund's outperformance was driven mostly by positions in cable/media,
energy and cyclical stocks.
o Energy stocks experienced a dramatic turnaround from their mediocre
performance in 1998.
o The Fund benefited from an underweighted position in financials vs. the
benchmark, as these stocks performed poorly given fears that the Federal
Reserve Board would raise interest rates.
- ---------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS(1)
As of 6-30-99
1-year 20.04%
3-year 23.01%
5-year 21.27%
10-year 15.59%
Since Inception 19.26%
(on 12-31-85)
- ---------------------------------------
FIVE LARGEST
STOCK HOLDINGS
As of 6-30-99
SECURITY % OF NET ASSETS
MediaOne Group, Inc. 2.1%
Corning, Inc. 1.8%
Enron Corporation 1.8%
Weatherford International, Inc. 1.7%
Apache Corporation 1.7%
Please see the Schedule of Investments
in Securities for a complete listing of
the Fund's portfolio.
PERSPECTIVES
FROM THE MANAGER
/s/Richard Trent Weiss
Richard Trent Weiss
Portfolio Manager
- --------------------------------------------------------------------------------
The Fund's performance was most influenced during this period by our positions
in cable/media, energy, and increased exposure to cyclical stocks. Specifically,
the Fund's strongest performers included Omnipoint, Weatherford International
and MediaOne. Cable/media stocks continued to be solid performers, although we
reduced our overweighted exposure to the sector, as valuations reflected some of
the good news. Energy stocks and cyclicals also benefited from the recovering
world economic picture. We remain bullish on both groups and have added names
where opportunities have presented themselves.
Two areas in which returns were positive but not as strong as other groups were
financial stocks and healthcare. Investors appeared skeptical that earnings on
financial stocks could continue to get stronger as interest rates rose.
Healthcare stocks remained under a cloud, due to reimbursement cuts for
hospitals and long-term care companies initiated by the Balanced Budget
Amendment of 1997. However, we added select healthcare services stocks as they
now represent good value going forward.
Looking out over the next six months, we are optimistic that we have reached a
turning point where smaller-cap stocks will perform well versus larger-cap
stocks. In the second quarter,
-------------------------------------
WE BELIEVE THE
IMPROVING WORLD
ECONOMIC PICTURE
WILL HELP THE
CONTINUED STRONG
PERFORMANCE OF
SMALL- AND MID-CAP
STOCKS GOING FORWARD.
-------------------------------------
- --------------------------------------------------------------------------------
1 Average annual total return and total return measure change in the value of
an investment in the Fund, assuming reinvestment of all dividends and
capital gains. Average annual total return reflects annualized change while
total return reflects aggregate change, and is not annualized.
12
<PAGE>
the Russell 2000(R) Index of small-cap stocks gained 15.55% versus 7.05% on the
S&P 500 Index. This outperformance came as welcome relief after an extended
period during which larger-cap stocks had outperformed small and mid caps. We
believe the improving world economic picture will help sustain strong
performance of small- and mid-cap stocks going forward.
We believe that energy and cyclical stocks should remain strong as the world
economies strengthen, resulting in improved profitability due to stronger
demand. Two areas we are warming up to are financials and technology. We
underweighted financials over the past 18 months--as valuations reflected a
negative interest-rate backdrop--but believe that valuations are beginning to
reflect the concerns over interest rates, enabling us to add names selectively.
In the technology area, we are somewhat cautious overall but have added software
and service stocks as Year 2000 fears peak and opportunities present themselves.
We thank you for investing in the Strong Opportunity Fund and look forward to
continuing to help you achieve your financial goals.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 12-31-85 to 6-30-99
[GRAPH]
THE STRONG S&P MidCap 400 Lipper Growth
OPPORTUNITY FUND Stock Index* Funds Index*
12-85 10,000 10,000 10,000
12-87 17,894 11,383 11,935
12-89 24,694 18,649 17,364
12-91 28,845 26,556 22,391
12-93 41,022 33,866 26,986
12-95 53,868 42,758 35,236
12-97 78,558 67,407 53,023
6-99 107,873 85,808 74,570
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of the
Standard & Poor's MidCap 400 Stock Index ("S&P MidCap400") and the Lipper Growth
Funds Index. Results include the reinvestment of all dividends and capital gains
distributions. Performance is historical and does not represent future results.
Investment returns and principal value vary, and you may have a gain or loss
when you sell shares.
- --------------------------------------------------------------------------------
* The S&P MidCap 400 is an unmanaged index generally representative of the
U.S. market for medium capitalization stocks. The Lipper Growth Funds Index
is an equally-weighted performance index of the largest qualifying funds in
this Lipper category. Source of the S&P index data is Standard & Poor's
Micropal. Source of the Lipper index data is Lipper Inc.
YOUR FUND'S
APPROACH
THE STRONG OPPORTUNITY FUND FOCUSES ON STOCKS OF MEDIUM-SIZE COMPANIES THAT
OFFER STRONG GROWTH POTENTIAL, BUT ARE UNDERPRICED. RATHER THAN RELY ON
TRADITIONAL WALL STREET RESEARCH, WE APPLY OUR PROPRIETARY PRIVATE MARKET VALUE
APPROACH TO FIND STOCKS FOR THE FUND. WE FIRST CONSIDER COMPANIES (AND
INDUSTRIES) THAT ARE OUT OF FAVOR. THEN WE DETERMINE THE PRICE WE BELIEVE AN
INVESTOR WOULD BE WILLING TO PAY FOR AN ENTIRE COMPANY--ITS PRIVATE MARKET
VALUE. A COMPANY WHOSE STOCK PRICE IS LOWER THAN ITS PRIVATE MARKET VALUE MAY BE
ADDED TO THE PORTFOLIO.
- --------------------------------------------------------------------------------
MARKET
HIGHLIGHTS
o The S&P MidCap 400 Stock Index returned 6.87% for the six-months ended June
30, 1999.*
o The U.S. economy remained very healthy during the first half of the year as
inflation remained low and an increase in bond market interest rates failed
to upset the stock market.
o Signs of a world economic recovery re-accelerated corporate profits and
caused investors to shift to more cyclical companies, a move that favors
small- and mid-cap stocks.
o The U.S. Federal Reserve Bank raised short-term interest rates by a quarter
of one percentage point in June to prevent the economy from overheating and
inflation from accelerating.
13
<PAGE>
==================
THE STRONG STRATEGIC GROWTH FUND
- ----------------------------------==================----------------------------
FUND
HIGHLIGHTS
o The Fund returned 13.33% for the six months ended June 30, 1999. The Fund
lagged early in the year but finished on a stronger note.(1)
o Healthcare-related issues underperformed during the quarter. We sold some
of these stocks, as the companies' operations had the potential for
extended downturns.
o The Fund's technology holdings, which provided solid returns over the
six-month period, were broadened to increase exposure to
telecommunications.
- ---------------------------------------
AVERAGE ANNUAL
TOTAL RETURN(1)
As of 6-30-99
Since Inception 27.50%
(on 6-30-98)
- ---------------------------------------
FIVE LARGEST
STOCK HOLDINGS
As of 6-30-99
SECURITY % OF NET ASSETS
Sykes Enterprises, Inc. 4.0%
Jones Medical Industries, Inc. 3.5%
C.H. Robinson Worldwide, Inc. 3.3%
Republic Services, Inc. 3.3%
Lexmark International 3.2%
Group, Inc. Class A
Please see the Schedule of Investments
in Securities for a complete listing of
the Fund's portfolio.
PERSPECTIVES
FROM THE MANAGER
/s/Scott Sindelar
Scott Sindelar
Portfolio Manager
- --------------------------------------------------------------------------------
For the first six months of the year, the Fund began slowly as a result of its
healthcare information systems holdings. Healthcare organizations reduced their
spending on new systems in order to ensure readiness of their existing systems
for any potential Year 2000 computer issues. This spending slowdown caused
healthcare information system stocks to decline significantly in value.
Healthcare providers indicated this slowdown could last through the first
quarter of the year 2000, so these holdings were sold to reduce their negative
impact on the Fund's return. The proceeds were invested in a variety of
industries.
The fear of Y2K-related spending slowdowns in other industries also depressed
the prices of other software companies in the portfolio during the first
quarter. These fears were lessened as the year progressed and these stocks had a
strong second quarter. The Fund's performance reflected this pattern of weakness
early in the year and strengthening as the year progressed.
The Fund broadened technology holdings during the period to include more
telecommunications stocks. Continued capital spending strength, the rapid growth
of the Internet, and the development of new technologies provided good
opportunities for the Fund. Additional opportunities in this market segment are
being examined as it continues to offer multi-year growth potential.
Healthcare stocks face two significant issues today: possible new regulations
from Washington and a possible slowdown in
-------------------------------------
THE FUND BROADENED
TECHNOLOGY
HOLDINGS DURING
THE PERIOD
TO INCLUDE MORE
TELECOMMUNICATIONS
STOCKS.
-------------------------------------
- --------------------------------------------------------------------------------
1 Average annual total return and total return measure change in the value of
an investment in the Fund, assuming reinvestment of all dividends and
capital gains. Average annual total return reflects annualized change while
total return reflects aggregate change, and is not annualized.
14
<PAGE>
new drug introduction from the larger pharmaceutical companies. Fears relating
to the latter issue hurt the performance of the Fund's healthcare stocks during
the year and may continue to weigh on them. However, from an operational
standpoint we believe these holdings are well positioned relative to these
issues. We anticipate that these stocks should contribute good earnings and cash
flows during the remainder of 1999, and in time, reward shareholders well. In
light of this, we plan to maintain the majority of these holdings.
Looking forward, the markets may remain choppy as the strong economy will be in
a tug-of-war against the potential for higher interest rates. Higher rates
typically put a damper on stock market returns. However, for the foreseeable
future, we believe corporate earnings should be strong, unemployment remain low
and inflation moderate. These factors should provide a solid base for equities.
To dampen some of the Fund's volatility, the number of holdings will be
increased. Total holdings should approximate 50 names. These steps should be
beneficial to shareholders and serve them well over time.
Thank you for your continued confidence in the Strong Strategic Growth Fund.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 6-30-98 to 6-30-99
[GRAPH]
THE STRONG S&P 500 Lipper Growth
STRATEGIC GROWTH FUND Stock Index* Funds Index*
6-98 10,000 10,000 10,000
9-98 9,020 9,005 8,859
12-98 11,250 10,923 10,876
3-99 11,100 11,467 11,427
6-99 12,750 12,276 12,169
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of the
Standard & Poor's 500 Stock Index ("S&P 500") and the Lipper Growth Funds Index.
Results include the reinvestment of all dividends and capital gains
distributions. Performance is historical and does not represent future results.
Investment returns and principal value vary, and you may have a gain or loss
when you sell shares.
- --------------------------------------------------------------------------------
* The S&P 500 is an unmanaged index generally representative of the U.S.
stock market. The Lipper Growth Funds Index is an equally-weighted
performance index of the largest qualifying funds in this Lipper category.
The Russell 2000(R) Index is an unmanaged index generally representative of
the U.S. market for small capitalization stocks. Source of the S&P and
Russell index data is Standard & Poor's Micropal. Source of the Lipper
index data is Lipper Inc.
YOUR FUND'S
APPROACH
THE STRONG STRATEGIC GROWTH FUND'S GOAL IS TO PROVIDE CAPITAL GROWTH BY
INVESTING IN A MODEST NUMBER OF COMPANIES WHICH ARE STRATEGICALLY POSITIONED FOR
LONG-TERM GROWTH. TWO TYPICAL CHARACTERISTICS OF SUCH COMPANIES ARE SKILLED
MANAGEMENT TEAMS AND SOLID FINANCIAL CHARACTERISTICS. A FOCUS OF THE INVESTMENT
PROCESS IS AN EFFORT TO BECOME KNOWLEDGEABLE ABOUT EACH MANAGEMENT TEAM. THESE
ARE THE PEOPLE WHO WILL ULTIMATELY DETERMINE THE LONG-TERM SUCCESS OF THE STOCK.
THE FUND INVESTS IN A VARIETY OF COMPANIES OF ALL SIZES.
- --------------------------------------------------------------------------------
MARKET
HIGHLIGHTS
o Large-cap stocks as represented by the S&P 500 Stock Index (S&P 500)--which
returned 12.4% for the period--outperformed the Russell 2000(R) during the
first half of 1999.* The strength of the economy offset the rise in
interest rates, enabling stocks to continue to climb.
o Uncertainties relating to the possible Year 2000 computer spending freeze
put pressure on software companies early in the year. This particularly
impacted healthcare-related software stocks.
o Other technology stocks performed well as these companies expect solid
sales and earnings gains.
o Healthcare stocks also faced issues of potential regulatory changes from
Washington.
15
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
================================================================================
STRONG COMMON STOCK FUND
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
COMMON STOCKS 91.3%
AIRLINE 0.3%
Air New Zealand, Ltd. Class B 2,138,800 $ 4,451,762
BANK - MONEY CENTER 0.2%
Bank of Tokyo - Mitsubishi 110,000 1,563,779
Standard Chartered PLC 116,000 1,894,935
------------
3,458,714
BANK - REGIONAL 2.5%
City National Corporation 460,000 17,221,250
Old Kent Financial Corporation 472,500 19,785,938
------------
37,007,188
BANK - SUPER REGIONAL 2.8%
BankBoston Corporation 380,000 19,427,500
Wells Fargo Company 535,000 22,871,250
------------
42,298,750
BROKERAGE & INVESTMENT MANAGEMENT 0.1%
Morgan Stanley Emerging Markets Fund, Inc. 84,000 987,000
CHEMICAL 0.9%
Rohm and Haas Company 295,020 12,648,983
CHEMICAL - SPECIALTY 1.1%
Crompton & Knowles Corporation 875,000 17,117,187
COMMERCIAL SERVICE 3.0%
Pittston Company Brinks Group 610,000 16,317,500
Rollins Truck Leasing Corporation 1,800,000 20,025,000
TMP Worldwide, Inc. (b) 137,500 8,731,250
------------
45,073,750
COMPUTER - MAINFRAME 1.2%
Apple Computer, Inc. (b) 385,000 17,830,312
COMPUTER - PERIPHERAL EQUIPMENT 1.3%
Microchip Technology, Inc. (b) 400,000 18,950,000
COMPUTER - PERSONAL & WORKSTATION 2.4%
DoubleClick, Inc. (b) 155,000 14,221,250
Sterling Commerce, Inc. (b) 590,000 21,535,000
------------
35,756,250
COMPUTER SERVICE 0.1%
Getronics NV 47,000 1,813,407
COMPUTER SOFTWARE 8.0%
Autodesk, Inc. 483,900 14,305,294
Informix Corporation (b) 2,620,000 22,351,875
Rational Software Corporation (b) 630,000 20,750,625
Sterling Software, Inc. (b) 950,000 25,353,125
Sybase, Inc. (b) 1,500,000 16,500,000
Synopsys, Inc. (b) 375,000 20,695,312
------------
119,956,231
CONSUMER - MISCELLANEOUS 1.5%
Canon, Inc. 71,000 2,038,614
Hillenbrand Industries, Inc. 475,000 20,543,750
------------
22,582,364
DIVERSIFIED OPERATIONS 1.5%
Carlisle Companies, Inc. 380,000 18,287,500
Invensys PLC 797,000 3,773,271
------------
22,060,771
ELECTRICAL EQUIPMENT 1.3%
Molex, Inc. Class A 625,000 19,687,500
ELECTRONIC PARTS DISTRIBUTION 1.0%
Marshall Industries (b) 431,100 15,492,656
ELECTRONIC PRODUCTS - MISCELLANEOUS 1.4%
General Motors Corporation Class H (b) 365,000 20,531,250
ELECTRONICS - SEMICONDUCTOR/COMPONENT 2.6%
Dallas Semiconductor Corporation 365,000 18,432,500
Xilinx, Inc. (b) 350,000 20,037,500
------------
38,470,000
ENGINEERING & CONSTRUCTION 1.1%
Jacobs Engineering Group, Inc. (b) 445,000 16,910,000
FOOD 1.2%
Nabisco Holdings Corporation 430,000 18,597,500
HEALTHCARE - BIOMEDICAL/GENETIC 1.4%
Centocor, Inc. (b) 435,000 20,281,875
HEALTHCARE - INSTRUMENTATION 1.2%
Beckman Coulter, Inc. 380,000 18,477,500
HEALTHCARE - PATIENT CARE 2.8%
Omnicare, Inc. 1,150,000 14,518,750
PhyCor, Inc. (b) 1,200,000 8,887,500
WellPoint Health Networks, Inc. (b) 209,000 17,738,875
------------
41,145,125
INSURANCE - DIVERSIFIED 1.3%
CIGNA Corporation 225,000 20,025,000
INSURANCE - PROPERTY & CASUALTY 2.4%
MBIA, Inc. 280,000 18,130,000
XL Capital, Ltd. Class A 300,000 16,950,000
------------
35,080,000
MACHINERY - MISCELLANEOUS 1.4%
Hussmann International, Inc. 1,275,000 21,117,188
MACHINERY - TRANSPORTATION EQUIPMENT & PARTS 1.2%
Trinity Industries, Inc. 555,000 18,592,500
MEDIA - PUBLISHING 1.7%
Arnoldo Mondadori Editore Spa 115,000 1,972,053
News Corporation, Ltd. Sponsored ADR 660,000 23,306,250
------------
25,278,303
MEDIA - RADIO/TV 4.0%
AT&T Corporation-Liberty Media Group Class A (b) 730,000 26,827,500
Cox Communications, Inc. Class A (b) 560,000 20,615,000
Flextech PLC (b) 725,000 11,677,584
------------
59,120,084
OIL - NORTH AMERICAN EXPLORATION & PRODUCTION 6.1%
Anadarko Petroleum Corporation 560,000 20,615,000
Apache Corporation 680,000 26,520,000
Devon Energy Corporation 613,500 21,932,625
EEX Corporation (b) 665,000 4,613,437
Enron Oil & Gas Company 640,000 12,960,000
Harken Energy Corporation (b) 2,700,000 4,387,500
------------
91,028,562
OIL WELL EQUIPMENT & SERVICE 5.4%
Nabors Industries, Inc. (b) 1,200,000 29,325,000
Offshore Logistics, Inc. (b) 995,000 11,069,375
Smith International, Inc. (b) 555,000 24,107,812
Tidewater, Inc. 535,000 16,317,500
------------
80,819,687
POLLUTION CONTROL 1.3%
Republic Services, Inc. (b) 790,000 19,552,500
16
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
STRONG COMMON STOCK FUND (CONTINUED)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
REAL ESTATE 2.8%
Apartment Investment & Management
Company Class A 480,000 $ 20,520,000
Security Capital Group, Inc. Class B (b) 1,130,000 16,455,625
Shortland Properties, Ltd. 851,000 263,424
Ventas, Inc. 896,000 4,816,000
--------------
42,055,049
RETAIL - MAJOR CHAIN 0.1%
Daiei, Inc. (b) 579,900 1,980,847
RETAIL - RESTAURANT 2.5%
IHOP Corporation (b) (f) 750,000 18,046,875
Outback Steakhouse, Inc. (b) 490,400 19,278,850
--------------
37,325,725
RETAIL - SPECIALTY 4.0%
AutoZone, Inc. (b) 550,000 16,568,750
Borders Group, Inc. (b) 1,145,000 18,105,312
Ross Stores, Inc. 255,000 12,845,625
TJX Companies, Inc. 370,000 12,325,625
--------------
59,845,312
SHOE & APPAREL MANUFACTURING 3.1%
Liz Claiborne, Inc. 510,000 18,615,000
Unifi, Inc. (b) 1,305,100 27,733,375
--------------
46,348,375
STEEL 0.7%
USX-US Steel Group 410,000 11,070,000
TELECOMMUNICATION EQUIPMENT 1.8%
Belden, Inc. 495,000 11,849,062
Newbridge Networks Corporation (b) 525,000 15,093,750
--------------
26,942,812
TELECOMMUNICATION SERVICE 10.6%
Aerial Communications, Inc. (b) 1,319,900 17,818,650
Cable & Wireless Communications PLC
Sponsored ADR (b) 120,000 5,820,000
Intermedia Communications, Inc. (b) 788,700 23,661,000
Libertel NV (Acquired 6/15/99; Cost $876,120) (b) (d) 40,000 786,144
MediaOne Group, Inc. (b) 375,500 27,927,812
NTL, Inc. (b) 248,000 21,374,500
Nippon Telegraph & Telephone Corporation 340 3,955,446
Paging Network, Inc. (b) 2,650,000 12,753,125
United States Cellular Corporation (b) 485,200 25,958,200
Vodafone Group PLC Sponsored ADR 90,000 17,730,000
--------------
157,784,877
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $1,043,562,367) 1,365,552,896
- --------------------------------------------------------------------------------
CORPORATE BONDS 0.7%
Omnipoint Corporation Senior Notes, 11.625%,
Due 8/15/06 $ 8,500,000 8,712,500
Omnipoint Corporation Senior Notes, Series A,
11.625%, Due 8/15/06 1,500,000 1,537,500
- --------------------------------------------------------------------------------
TOTAL CORPORATE BONDS (COST $6,186,761) 10,250,000
- --------------------------------------------------------------------------------
CONVERTIBLE BONDS 0.2%
Conxus Communications, Inc. Senior Subordinated
Notes, 9.00%, Due 5/15/01 (Acquired 5/22/98;
Cost $13,000,000) (b) (d) 13,000,000 2,340,000
- --------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS (COST $13,000,000) 2,340,000
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 7.8%
COMMERCIAL PAPER 0.1%
INTEREST BEARING, DUE UPON DEMAND
General Mills, Inc., 4.82% 100 100
Pitney Bowes Credit Corporation, 4.82% 131,700 131,700
Warner Lambert Company, 4.91% 327,500 327,500
Wisconsin Electric Power Company, 4.91% 1,478,700 1,478,700
--------------
1,938,000
REPURCHASE AGREEMENTS 7.5%
ABN-AMRO Inc. (Dated 6/30/99), 4.78%, Due 7/01/99
(Repurchase proceeds $112,414,924); Collateralized
by: SLMA Notes, FNMA Notes, FHLMC Notes,
Federal Home Loan Bank Bonds, Federal Farm
Credit Bank Notes, Tennessee Valley Authority
Bonds, and Resolution Funding Corporation
Bonds (e) 112,400,000 112,400,000
UNITED STATES GOVERNMENT ISSUES 0.2%
United States Treasury Bills:
Due 7/01/99 (c) 60,000 60,000
Due 8/05/99 (c) 1,991,328 1,991,502
Due 8/12/99 (c) 1,293,243 1,293,403
--------------
3,344,905
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $117,682,571) 117,682,905
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES (COST $1,180,431,699) 100.0% 1,495,825,801
Other Assets and Liabilities, Net (0.0%) (76,583)
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $1,495,749,218
================================================================================
FUTURES
- --------------------------------------------------------------------------------
Underlying Unrealized
Expiration Face Amount Appreciation
Date at Value (Depreciation)
- --------------------------------------------------------------------------------
Purchased:
73 Nikkei Index 9/99 $6,480,575 $517,388
Sold:
25 NASDAQ 100 Index 9/99 5,817,750 (489,938)
15 S&P 500 Index 9/99 5,181,375 (223,875)
WRITTEN OPTIONS ACTIVITY
- --------------------------------------------------------------------------------
Contracts Premiums
- --------------------------------------------------------------------------------
Options outstanding at beginning of period -- $ --
Options written during the period 80 17,759
Options closed -- --
Options expired -- --
Options exercised (80) (17,759)
-- -------
Options outstanding at end of period -- $ --
== =======
17
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
================================================================================
STRONG DISCOVERY FUND
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
COMMON STOCKS 97.8%
AEROSPACE & DEFENSE 0.2%
AVTEAM, Inc. Class A (b) 74,025 $ 541,308
BANK - MONEY CENTER 1.4%
Citigroup, Inc. 70,000 3,325,000
BANK - SUPER REGIONAL 0.6%
Bank One Corporation 23,900 1,423,544
BROKERAGE & INVESTMENT MANAGEMENT 1.3%
Waddell & Reed Financial, Inc. Class A 117,100 3,212,931
COMMERCIAL SERVICE 16.2%
Coinmach Laundry Corporation (b) 492,200 6,244,787
Consolidated Graphics, Inc. (b) 70,100 3,505,000
The Hertz Corporation 80,000 4,960,000
ITT Educational Services, Inc. (b) 240,900 6,278,456
Lamar Advertising Company (b) 18,800 769,625
Lason Holdings, Inc. (b) 32,900 1,632,663
Merkert American Corporation (b) 255,000 2,422,500
Outdoor Systems, Inc. (b) 111,200 4,058,800
The ServiceMaster Company 73,500 1,378,125
Sykes Enterprises, Inc. (b) 216,000 7,209,000
Valassis Communications, Inc. (b) 27,900 1,021,838
-----------
39,480,794
COMPUTER - MAINFRAME 2.8%
Hewlett-Packard Company 26,000 2,613,000
International Business Machines Corporation 33,500 4,329,875
-----------
6,942,875
COMPUTER - PERIPHERAL EQUIPMENT 2.2%
Lexmark International Group, Inc. Class A (b) 70,000 4,624,375
Microchip Technology, Inc. (b) 14,500 686,938
-----------
5,311,313
COMPUTER - PERSONAL & WORKSTATION 0.4%
Security Dynamics Technologies, Inc. (b) 43,200 918,000
COMPUTER SERVICE 2.8%
Acxiom Corporation (b) 9,900 246,881
CSG Systems International, Inc. (b) 20,600 539,463
Fiserv, Inc. (b) 35,100 1,099,069
Pierce Leahy Corporation (b) 150,000 3,703,125
Sungard Data Systems, Inc. (b) 35,000 1,207,500
-----------
6,796,038
COMPUTER SOFTWARE 2.8%
Cisco Systems, Inc. (b) 26,000 1,677,000
Electronics for Imaging, Inc. (b) 54,100 2,779,387
Microsoft Corporation (b) 14,600 1,316,738
Oracle Systems Corporation (b) 26,100 968,963
-----------
6,742,088
CONSUMER - MISCELLANEOUS 1.2%
Carriage Services, Inc. Class A (b) 162,100 3,039,375
DIVERSIFIED OPERATIONS 0.7%
Tyco International, Ltd. 17,400 1,648,650
ELECTRICAL EQUIPMENT 0.8%
Methode Electronics, Inc. Class A 46,300 1,059,113
PRI Automation, Inc. (b) 22,400 812,000
-----------
1,871,113
ELECTRONIC PARTS DISTRIBUTION 0.5%
Kent Electronics Corporation (b) 62,500 1,238,280
ELECTRONIC PRODUCTS - MISCELLANEOUS 1.8%
Rayovac Corporation (b) 196,700 4,462,630
ELECTRONICS - SEMICONDUCTOR/COMPONENT 0.3%
Applied Materials, Inc. (b) 10,000 738,750
ENERGY - ALTERNATE SOURCE 0.1%
KTI, Inc. (b) 14,600 208,050
FINANCE - MISCELLANEOUS 0.5%
NOVA Corporation (b) 50,000 1,250,000
HEALTHCARE - DRUG/DIVERSIFIED 0.4%
Halsey Drug Company, Inc. (Acquired 5/20/98 - 4/01/99;
Cost $65,445) (b) (d) (f) 23,075 50,627
Jones Medical Industries, Inc. 26,300 1,035,562
-----------
1,086,189
HEALTHCARE - INSTRUMENTATION 0.3%
Medtronic, Inc. 8,800 685,300
HEALTHCARE - MEDICAL SUPPLY 5.2%
Henry Schein, Inc. (b) 105,300 3,336,694
Ocular Sciences, Inc. (b) 110,100 1,912,988
PSS World Medical, Inc. (b) 150,000 1,678,125
Sybron International Corporation (b) 210,000 5,788,124
-----------
12,715,931
HEALTHCARE - PATIENT CARE 1.1%
Covance, Inc. (b) 56,950 1,363,240
Lincare Holdings, Inc. (b) 28,100 702,500
Renal Care Group, Inc. (b) 19,500 504,563
-----------
2,570,303
HEALTHCARE - PRODUCT 0.5%
Cytyc Corporation (b) 13,500 263,250
Hanger Orthopedic Group, Inc. (b) 70,000 993,125
-----------
1,256,375
INSURANCE - LIFE 0.5%
Protective Life Corporation 34,700 1,145,100
LEISURE PRODUCT 2.1%
Action Performance Companies, Inc. (b) 35,000 1,155,000
Harley-Davidson, Inc. 18,000 978,750
SCP Pool Corporation (b) 111,600 2,887,650
-----------
5,021,400
LEISURE SERVICE 3.7%
Bally Total Fitness Holding Corporation (b) 135,000 3,830,625
Mandalay Resort Group (b) 51,000 1,077,375
Park Place Entertainment Corporation (b) 415,900 4,029,031
-----------
8,937,031
MACHINE TOOL 0.3%
Applied Power, Inc. 27,300 745,631
MEDIA - PUBLISHING 1.1%
School Specialty, Inc. (b) 163,200 2,621,400
MEDIA - RADIO/TV 7.9%
Adelphia Communications Corporation Class A (b) 46,600 2,964,925
Chancellor Media Corporation (b) 114,150 6,292,519
Clear Channel Communications, Inc. (b) 60,000 4,136,250
Infinity Broadcasting Corporation Class A (b) 35,000 1,041,250
Viacom International, Inc. (b) 109,000 4,796,000
-----------
19,230,944
OFFICE AUTOMATION 0.7%
Xerox Corporation 30,000 1,771,875
OIL - NORTH AMERICAN EXPLORATION & PRODUCTION 1.4%
Ocean Energy, Inc. (b) 348,950 3,358,644
OIL WELL EQUIPMENT & SERVICE 3.6%
BJ Services Company (b) 75,000 2,207,813
Cooper Cameron Corporation (b) 38,000 1,408,375
18
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
STRONG DISCOVERY FUND (CONTINUED)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Marine Drilling Companies, Inc. (b) 35,000 $ 479,063
Nabors Industries, Inc. (b) 138,100 3,374,818
Noble Drilling Corporation (b) 70,000 1,378,125
------------
8,848,194
PERSONAL & COMMERCIAL LENDING 1.5%
Associates First Capital Corporation 38,500 1,706,031
Household International, Inc. 40,000 1,895,000
------------
3,601,031
POLLUTION CONTROL 3.8%
Allied Waste Industries, Inc. (b) 175,000 3,456,250
Casella Waste Systems, Inc. (b) 44,800 1,164,800
Republic Services, Inc. (b) 125,225 3,099,319
Superior Services, Inc. (b) 30,000 800,625
Waste Management, Inc. 15,000 806,250
------------
9,327,244
RAILROAD 0.5%
Burlington Northern Santa Fe Corporation 40,000 1,240,000
REAL ESTATE 0.8%
Sunstone Hotel Investors, Inc. 230,850 1,962,225
RETAIL - DEPARTMENT STORE 0.3%
Federated Department Stores, Inc. (b) 13,500 714,656
RETAIL - FOOD CHAIN 0.3%
US Foodservice (b) 15,000 639,375
RETAIL - RESTAURANT 0.8%
Papa John's International, Inc. (b) 11,300 504,969
Rainforest Cafe, Inc. (b) 280,000 1,417,500
------------
1,922,469
RETAIL - SPECIALTY 14.1%
Best Buy Company, Inc. (b) 17,900 1,208,250
Central Garden & Pet Company (b) 981,200 10,057,300
Global Imaging Systems, Inc. (b) 105,000 1,916,250
Insight Enterprises, Inc. (b) 89,700 2,220,075
Movie Gallery, Inc. (b) 402,725 2,164,647
Office Depot, Inc. (b) 105,000 2,316,563
Pier 1 Imports, Inc. 110,000 1,237,500
Regis Corporation 188,125 3,609,648
Rent-A-Center, Inc. (b) 155,700 3,736,800
Sunglass Hut International, Inc. (b) 304,500 5,233,594
United Stationers, Inc. (b) 30,000 660,000
------------
34,360,627
SAVINGS & LOAN 1.5%
Dime Bancorp, Inc. 20,000 402,500
TCF Financial Corporation 115,000 3,205,625
------------
3,608,125
TELECOMMUNICATION EQUIPMENT 1.7%
American Tower Corporation Class A (b) 22,000 528,000
Pinnacle Holdings, Inc. (b) 144,300 3,535,350
------------
4,063,350
TELECOMMUNICATION SERVICE 7.1%
AT&T Corporation 189,700 10,587,630
Davel Communications, Inc. (b) 226,300 1,216,363
MCI WorldCom, Inc. (b) 10,200 879,750
MediaOne Group, Inc. (b) 54,100 4,023,688
Teleglobe, Inc. 19,500 580,125
------------
17,287,556
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $212,544,478) 237,871,714
- --------------------------------------------------------------------------------
WARRANTS 0.0%
Halsey Drug Company, Inc. Warrants,
Expire 12/26/01 (Acquired 7/21/97;
Cost $0) (b) (d) (f) 21,429 12,536
- --------------------------------------------------------------------------------
TOTAL WARRANTS (COST $0) 12,536
- --------------------------------------------------------------------------------
CONVERTIBLE BONDS 0.2%
Halsey Drug Company, Inc. Subordinated
Debentures, 10.00%, Due 8/06/01
(Acquired 8/05/96; Cost $587,550) (b) (d) (f) $ 600,000 $ 404,994
- --------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS (AMORTIZED COST $593,982) 404,994
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 2.6%
COMMERCIAL PAPER 0.4%
INTEREST BEARING, DUE UPON DEMAND
Warner Lambert Company, 4.91% 100 100
Wisconsin Electric Power Company, 4.91% 994,000 994,000
------------
994,100
REPURCHASE AGREEMENTS 1.4%
ABN-AMRO Inc. (Dated 6/30/99), 4.78%, Due 7/01/99
(Repurchase proceeds $3,400,451); Collateralized
by: SLMA Notes, FNMA Notes, FHLMC Notes,
Federal Home Loan Bank Bonds, Federal Farm
Credit Bank Notes, Tennessee Valley Authority
Bonds, and Resolution Funding
Corporation Bonds (e) 3,400,000 3,400,000
UNITED STATES GOVERNMENT ISSUES 0.8%
United States Treasury Bills, Due 8/26/99
thru 9/09/99 (c) 1,905,772 1,906,328
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $6,299,872) 6,300,428
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES (COST $219,438,332) 100.6% 244,589,672
Other Assets and Liabilities, Net (0.6%) (1,402,823)
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $243,186,849
================================================================================
FUTURES
- --------------------------------------------------------------------------------
Underlying
Expiration Face Amount Unrealized
Date at Value Depreciation
- --------------------------------------------------------------------------------
Sold:
4 S&P 500 9/99 $1,381,700 ($54,457)
WRITTEN OPTIONS ACTIVITY
- --------------------------------------------------------------------------------
Contracts Premiums
- --------------------------------------------------------------------------------
Options outstanding at beginning of period -- $ --
Options written during the period 2,221 762,686
Options closed (2,221) (762,686)
Options expired -- --
Options exercised -- --
----- --------
Options outstanding at end of period -- $ --
===== ========
Closed options resulted in a capital loss of $878,180.
19
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
================================================================================
STRONG GROWTH FUND
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
COMMON STOCKS 93.3%
AIRLINE 0.5%
Midwest Express Holdings, Inc. (b) 350,000 $ 11,900,000
BANK - REGIONAL 0.4%
First Tennessee National Corporation 200,000 7,662,500
BROKERAGE & INVESTMENT MANAGEMENT 1.0%
The Charles Schwab Corporation 75,000 8,240,625
The Goldman Sachs Group, Inc. (b) 90,000 6,502,500
WEBS Index Fund, Inc. 500,000 6,250,000
------------
20,993,125
CHEMICAL - SPECIALTY 0.8%
Praxair, Inc. 375,000 18,351,563
COMMERCIAL SERVICE 2.2%
Cintas Corporation 150,000 10,078,125
MedQuist, Inc. (b) 140,000 6,125,000
Outdoor Systems, Inc. (b) 500,000 18,250,000
Sykes Enterprises, Inc. (b) 425,000 14,184,375
------------
48,637,500
COMPUTER - MAINFRAME 0.9%
Apple Computer, Inc. (b) 400,000 18,525,000
COMPUTER - PERIPHERAL EQUIPMENT 1.2%
Lexmark International Group, Inc. Class A (b) 150,000 9,909,375
Microchip Technology, Inc. (b) 200,000 9,475,000
Network Appliance, Inc. (b) 125,000 6,984,375
------------
26,368,750
COMPUTER - PERSONAL & WORKSTATION 4.4%
America Online, Inc. (b) 225,000 24,862,500
E*Trade Group, Inc. (b) 200,000 7,987,500
Exodus Communications, Inc. (b) 70,000 8,395,625
Inktomi Corporation (b) 125,000 16,320,313
Marimba, Inc. (b) 140,000 7,376,250
RealNetworks, Inc.(b) 75,000 5,165,625
VeriSign, Inc. (b) 200,000 17,250,000
Yahoo! Inc. (b) 45,000 7,751,250
------------
95,109,063
COMPUTER SERVICE 0.3%
Fiserv, Inc. (b) 200,000 6,262,500
COMPUTER SOFTWARE 9.9%
BroadVision, Inc. (b) 120,000 8,850,000
Business Objects SA Sponsored ADR (b) 300,000 10,950,000
Cisco Systems, Inc. (b) 1,450,000 93,525,000
Citrix Systems, Inc. (b) 525,000 29,662,500
Computer Network Technology Corporation (b) 160,000 3,460,000
Compuware Corporation (b) 395,500 12,581,844
Intuit, Inc. (b) 100,000 9,012,500
Microsoft Corporation (b) 250,000 22,546,875
New Era of Networks, Inc. (b) 200,000 8,787,500
Rational Software Corporation (b) 200,000 6,587,500
Veritas Software Corporation (b) 100,000 9,493,750
------------
215,457,469
CONTAINER 0.5%
Sealed Air Corporation (b) 175,000 11,353,125
DIVERSIFIED OPERATIONS 2.2%
Tyco International, Ltd. 500,000 47,375,000
ELECTRONIC INSTRUMENTATION 2.7%
PE Corporation-PE Biosystems Group 175,000 20,081,250
Teradyne, Inc. (b) 200,000 14,350,000
Waters Corporation (b) 450,000 23,906,250
------------
58,337,500
ELECTRONIC PRODUCTS - MISCELLANEOUS 1.1%
Jabil Circuit, Inc. (b) 225,000 10,153,125
Rockwell International Corporation 225,000 13,668,750
------------
23,821,875
ELECTRONICS - SEMICONDUCTOR/COMPONENT 6.8%
ASM Lithography Holding NV 200,000 11,875,000
Altera Corporation (b) 75,000 2,760,937
Broadcom Corporation (b) 175,000 25,298,437
LSI Logic Corporation (b) 300,000 13,837,500
Lam Research Corporation (b) 100,000 4,668,750
Maxim Integrated Products, Inc. (b) 150,000 9,975,000
Novellus Systems, Inc. (b) 150,000 10,237,500
PMC-Sierra, Inc. (b) 245,000 14,439,687
Rambus, Inc. 105,000 9,679,687
Solectron Corporation (b) 150,000 10,003,125
Transwitch Corporation (b) 300,000 14,212,500
Xilinx, Inc. (b) 350,000 20,037,500
------------
147,025,623
FINANCE - MISCELLANEOUS 2.5%
Concord EFS, Inc. (b) 425,000 17,982,812
First Data Corporation 725,000 35,479,687
------------
53,462,499
HEALTHCARE - BIOMEDICAL/GENETIC 1.7%
Biogen, Inc. (b) 450,000 28,940,625
Centocor, Inc. (b) 150,000 6,993,750
------------
35,934,375
HEALTHCARE - DRUG/DIVERSIFIED 1.0%
Andrx Corporation (b) 200,000 15,425,000
Forest Laboratories, Inc. (b) 150,000 6,937,500
------------
22,362,500
HEALTHCARE - INSTRUMENTATION 0.8%
Medtronic, Inc. 225,000 17,521,875
HEALTHCARE - MEDICAL SUPPLY 1.5%
Advanced Neuromodulation Systems, Inc. (b) 300,000 2,850,000
Bausch & Lomb, Inc. 200,000 15,300,000
Cardinal Health, Inc. 90,000 5,771,250
Sybron International Corporation (b) 300,000 8,268,750
------------
32,190,000
HEALTHCARE - PATIENT CARE 0.3%
HEALTHSOUTH Corporation (b) 500,000 7,468,750
HEALTHCARE - PRODUCT 2.1%
Allergan, Inc. 300,000 33,300,000
Boston Scientific Corporation (b) 150,000 6,590,625
Sepracor, Inc. (b) 65,000 5,281,250
------------
45,171,875
HOUSEHOLD APPLIANCES & FURNISHINGS 0.4%
Leggett & Platt, Inc. 345,600 9,612,000
INSURANCE - DIVERSIFIED 0.3%
Marsh & McLennan Companies, Inc. 100,000 7,550,000
INSURANCE - PROPERTY & CASUALTY 0.2%
MGIC Investment Corporation 100,000 4,862,500
LEISURE PRODUCT 0.4%
Harley-Davidson, Inc. 150,000 8,156,250
LEISURE SERVICE 0.7%
International Speedway Corporation Class A 100,000 4,750,000
SFX Entertainment, Inc. (b) 150,000 9,600,000
------------
14,350,000
MEDIA - RADIO/TV 2.3%
AT&T Corporation-Liberty Media Group Class A (b) 500,000 18,375,000
Clear Channel Communications, Inc. (b) 335,000 23,094,063
Time Warner, Inc. 125,000 9,187,500
------------
50,656,563
20
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
STRONG GROWTH FUND (CONTINUED)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
METAL PRODUCTS & FABRICATION 0.3%
Kaydon Corporation 200,000 $ 6,725,000
OIL - NORTH AMERICAN EXPLORATION & PRODUCTION 0.9%
Apache Corporation 200,000 7,800,000
Union Pacific Resources Group, Inc. 750,000 12,234,375
------------
20,034,375
OIL WELL EQUIPMENT & SERVICE 3.7%
BJ Services Company (b) 500,000 14,718,750
Cooper Cameron Corporation (b) 265,000 9,821,563
ENSCO International, Inc. 800,000 15,950,000
Rowan Companies, Inc. (b) 1,500,000 27,656,250
Smith International, Inc. (b) 275,000 11,945,312
------------
80,091,875
RETAIL - DEPARTMENT STORE 3.2%
Kohl's Corporation (b) 900,000 69,468,750
RETAIL - DISCOUNT & VARIETY 1.4%
Dollar Tree Stores, Inc. (b) 450,000 19,800,000
99 Cents Only Stores (b) 200,000 9,987,500
------------
29,787,500
RETAIL - DRUG STORE 0.7%
Walgreen Company 500,000 14,687,500
RETAIL - FOOD CHAIN 0.4%
The Kroger Company (b) 300,000 8,381,250
RETAIL - MAJOR CHAIN 0.8%
BJ's Wholesale Club, Inc. (b) 300,000 9,018,750
Wal-Mart Stores, Inc. 175,000 8,443,750
------------
17,462,500
RETAIL - RESTAURANT 1.6%
Outback Steakhouse, Inc. (b) 425,000 16,707,813
Starbucks Corporation (b) 500,000 18,781,250
------------
35,489,063
RETAIL - SPECIALTY 12.7%
Abercrombie & Fitch Company Class A (b) 300,000 14,400,000
American Eagle Outfitters, Inc. (b) 520,000 23,660,000
Bed Bath & Beyond, Inc. (b) 200,000 7,700,000
Best Buy Company, Inc. (b) 450,000 30,375,000
Circuit City Stores, Inc. 320,000 29,760,000
David's Bridal, Inc. (b) 555,000 8,637,188
Gap, Inc. 135,000 6,800,625
The Home Depot, Inc. 430,000 27,708,125
The Limited, Inc. 250,000 11,343,750
Linens `N Things, Inc. (b) 350,000 15,312,500
Lowe's Companies, Inc. 700,000 39,681,250
Pier 1 Imports, Inc. 900,000 10,125,000
Staples, Inc. (b) 600,000 18,562,500
Tandy Corporation 650,000 31,768,750
------------
275,834,688
SHOE & APPAREL MANUFACTURING 1.6%
NIKE, Inc. Class B 300,000 18,993,750
Tommy Hilfiger Corporation (b) 200,000 14,700,000
------------
33,693,750
TELECOMMUNICATION EQUIPMENT 8.0%
Comverse Technology, Inc. (b) 330,000 24,915,000
General Instrument Corporation (b) 150,000 6,375,000
Lucent Technologies, Inc. 460,000 31,021,250
Qualcomm, Inc. (b) 85,000 12,197,500
Tellabs, Inc. (b) 620,000 41,888,750
Uniphase Corporation (b) 340,000 56,440,000
------------
172,837,500
TELECOMMUNICATION SERVICE 8.4%
Covad Communications Group, Inc. (b) 465,100 24,795,644
Equant NV - New York Registered Shares (b) 150,000 14,118,750
Frontier Corporation 425,000 25,075,000
Global Crossing, Ltd. (b) 163,744 6,979,588
Level 3 Communications, Inc. (b) 200,000 12,012,500
MCI WorldCom, Inc. (b) 675,000 58,218,750
Montana Power Company 200,000 14,100,000
Qwest Communications International, Inc. (b) 460,000 15,208,750
Sprint Corporation - PCS Group (b) 200,000 11,425,000
------------
181,933,982
TELEPHONE 0.5%
Telephone & Data Systems, Inc. 150,000 10,959,375
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $1,373,780,544) 2,023,866,888
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 7.0%
COMMERCIAL PAPER 0.1%
INTEREST BEARING, DUE UPON DEMAND
General Mills, Inc., 4.82% $ 1,450,000 1,450,000
Warner Lambert Company, 4.91% 1,347,300 1,347,300
Wisconsin Electric Power Company, 4.91% 92,900 92,900
------------
2,890,200
REPURCHASE AGREEMENTS 6.9%
ABN-AMRO Inc. (Dated 6/30/99), 4.78%,
Due 7/01/99 (Repurchase proceeds $148,719,744);
Collateralized by: SLMA Notes, FNMA Notes,
FHLMC Notes, Federal Home Loan Bank Bonds,
Federal Farm Credit Bank Notes, Tennessee
Valley Authority Bonds, and Resolution Funding
Corporation Bonds (e) 148,700,000 148,700,000
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $151,590,200) 151,590,200
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES (COST $1,525,370,744) 100.3% 2,175,457,088
Other Assets and Liabilities, Net (0.3%) (6,472,398)
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $2,168,984,690
================================================================================
WRITTEN OPTIONS ACTIVITY
- --------------------------------------------------------------------------------
Contracts Premiums
- --------------------------------------------------------------------------------
Options outstanding at beginning of period -- $ --
Options written during the period 11,500 14,172,716
Options closed (11,500) (14,172,716)
Options expired -- --
Options exercised -- --
------ -----------
Options outstanding at end of period -- $ --
====== ===========
Closed options resulted in a capital loss of $2,086,729.
21
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
================================================================================
STRONG MID CAP DISCIPLINED FUND
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
COMMON STOCKS 91.3%
AGRICULTURAL OPERATIONS 1.3%
Fresh Del Monte Produce, Inc. (b) 6,325 $ 89,341
AIRLINE 1.3%
Continental Airlines, Inc. Class B (b) 2,335 87,854
AUTO & TRUCK PARTS 1.6%
Delphi Automotive Systems Corporation 6,100 113,231
BANK - REGIONAL 1.7%
Community First Bankshares, Inc. 4,945 118,061
BEVERAGE - SOFT DRINK 3.6%
The Pepsi Bottling Group, Inc. 5,950 137,222
Whitman Corporation 6,250 112,500
--------
249,722
CHEMICAL - SPECIALTY 2.9%
Air Products & Chemicals, Inc. 2,850 114,712
Dexter Corporation 2,225 90,808
--------
205,520
COMPUTER SERVICE 3.3%
Bell & Howell Company (b) 2,400 90,750
Complete Business Solutions, Inc. (b) 7,900 141,706
--------
232,456
COMPUTER SOFTWARE 4.4%
Cadence Design Systems, Inc. (b) 8,000 102,000
Check Point Software Technologies, Ltd. (b) 1,750 93,844
Sterling Software, Inc. (b) 4,325 115,422
--------
311,266
CONTAINER 0.8%
Owens Illinois, Inc. (b) 1,725 56,386
COSMETIC & PERSONAL CARE 1.7%
Playtex Products, Inc. (b) 7,790 121,232
ELECTRONICS - SEMICONDUCTOR/COMPONENT 2.8%
Analog Devices, Inc. (b) 2,065 103,636
Micron Technology, Inc. (b) 2,300 92,719
--------
196,355
FOOD 1.8%
Flowers Industries, Inc. 5,885 127,631
HEALTHCARE - DRUG/DIVERSIFIED 1.7%
ICN Pharmaceuticals, Inc. 3,775 121,508
HEALTHCARE - MEDICAL SUPPLY 2.3%
Amerisource Health Corporation Class A (b) 4,475 114,112
Bergen Brunswig Corporation Class A 2,675 46,144
--------
160,256
HEALTHCARE - PATIENT CARE 4.2%
HEALTHSOUTH Corporation (b) 5,900 88,131
Tenet Healthcare Corporation (b) 5,350 99,309
Total Renal Care Holdings, Inc. (b) 6,780 105,514
--------
292,954
HOUSEHOLD APPLIANCES & FURNISHINGS 2.4%
Herman Miller, Inc. 2,890 60,690
Premark International, Inc. 2,890 108,375
--------
169,065
INSURANCE - LIFE 3.2%
Nationwide Financial Services, Inc. Class A 2,735 123,759
Protective Life Corporation 3,025 99,825
--------
223,584
INSURANCE - PROPERTY & CASUALTY 4.1%
Ace, Ltd. 4,150 117,238
Allmerica Financial Corporation 1,595 96,996
MBIA, Inc. 1,165 75,434
--------
289,668
LEISURE PRODUCT 3.1%
Galileo International, Inc. 2,700 144,281
Luxottica Group Spa ADR 4,800 74,700
--------
218,981
LEISURE SERVICE 2.9%
Harrahs Entertainment, Inc. (b) 3,000 66,000
Royal Caribbean Cruises, Ltd. 3,220 140,875
--------
206,875
MEDIA - RADIO/TV 1.9%
Chancellor Media Corporation (b) 1,575 86,822
USA Networks, Inc. (b) 1,100 44,138
--------
130,960
MORTGAGE & RELATED SERVICE 1.7%
Countrywide Credit Industries, Inc. 2,800 119,700
NATURAL GAS DISTRIBUTION 3.0%
El Paso Energy Corporation 3,400 119,638
KeySpan Corporation 3,400 89,675
--------
209,313
OIL - NORTH AMERICAN EXPLORATION & PRODUCTION 3.2%
Devon Energy Corporation 3,100 110,825
Newfield Exploration Company (b) 3,950 112,328
--------
223,153
OIL WELL EQUIPMENT & SERVICE 6.3%
BJ Services Company (b) 3,125 91,992
Baker Hughes, Inc. 2,000 67,000
ENSCO International, Inc. 5,200 103,675
Nabors Industries, Inc. (b) 3,350 81,866
Tuboscope, Inc. (b) 7,300 99,919
--------
444,452
POLLUTION CONTROL 1.6%
Republic Services, Inc. (b) 4,475 110,756
RETAIL - DEPARTMENT STORE 3.0%
Saks, Inc. (b) 3,750 108,281
Shopko Stores, Inc. (b) 2,925 106,031
--------
214,312
RETAIL - FOOD CHAIN 4.8%
Food Lion, Inc. 10,275 122,016
Richfood Holdings, Inc. 5,325 93,853
SUPERVALU, Inc. 4,600 118,163
--------
334,032
RETAIL - MAJOR CHAIN 1.5%
BJ's Wholesale Club, Inc. (b) 3,450 103,716
RETAIL - RESTAURANT 2.0%
CBRL Group, Inc. 8,125 140,664
RETAIL - SPECIALTY 3.4%
Furniture Brands International, Inc. (b) 5,130 142,999
Payless ShoeSource, Inc. (b) 1,840 98,440
--------
241,439
SAVINGS & LOAN 2.8%
Charter One Financial, Inc. 3,855 107,217
Dime Bancorp, Inc. 4,565 91,871
--------
199,088
SHOE & APPAREL MANUFACTURING 1.3%
Tommy Hilfiger Corporation (b) 1,265 92,978
TELECOMMUNICATION EQUIPMENT 1.6%
ECI Telecom, Ltd. 3,300 109,519
TELECOMMUNICATION SERVICE 0.9%
MediaOne Group, Inc. (b) 890 66,194
TRUCKING 1.2%
CNF Transportation, Inc. 2,215 85,001
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $6,064,260) 6,417,223
- --------------------------------------------------------------------------------
22
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
STRONG MID CAP DISCIPLINED FUND (CONTINUED)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 10.2%
COMMERCIAL PAPER
INTEREST BEARING, DUE UPON DEMAND
General Mills, Inc., 4.82% $258,200 $ 258,200
Pitney Bowes Credit Corporation, 4.82% 217,700 217,700
Warner Lambert Company, 4.91% 132,100 132,100
Wisconsin Electric Power Company, 4.91% 112,700 112,700
----------
720,700
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $720,700) 720,700
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES (COST $6,784,960) 101.5% 7,137,923
Other Assets and Liabilities, Net (1.5%) (107,947)
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $7,029,976
================================================================================
================================================================================
STRONG MID CAP GROWTH FUND
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
COMMON STOCKS 100.0%
BANK - REGIONAL 2.2%
First Tennessee National Corporation 6,000 $ 229,875
Zions Bancorporation 6,500 412,750
----------
642,625
BANK - SUPER REGIONAL 2.8%
BankBoston Corporation 7,000 357,875
State Street Corporation 5,500 469,562
----------
827,437
BROKERAGE & INVESTMENT MANAGEMENT 4.2%
The Bear Stearns Companies, Inc. 3,000 140,250
Donaldson, Lufkin & Jenrette, Inc. 5,800 349,450
Franklin Resources, Inc. 10,500 426,562
Knight/Trimark Group, Inc. Class A (b) 2,500 150,781
WEBS Index Fund, Inc. 14,500 181,250
----------
1,248,293
COMMERCIAL SERVICE 1.5%
MedQuist, Inc. (b) 6,200 271,250
TMP Worldwide, Inc. (b) 2,500 158,750
----------
430,000
COMPUTER - MAINFRAME 1.0%
Apple Computer, Inc. (b) 6,500 301,031
COMPUTER - PERIPHERAL EQUIPMENT 3.0%
American Power Conversion Corporation (b) 14,000 281,750
Lexmark International Group, Inc. Class A (b) 9,000 594,563
----------
876,313
COMPUTER - PERSONAL & WORKSTATION 11.4%
At Home Corporation Series A (b) 9,500 512,406
CNET, Inc. (b) 6,000 345,750
DoubleClick, Inc. (b) 3,000 275,250
E*Trade Group, Inc. (b) 14,500 579,094
Exodus Communications, Inc. (b) 2,400 287,850
Inktomi Corporation (b) 2,500 326,406
Net.bank, Inc. (b) 17,000 646,000
USinternetworking, Inc. (b) 5,600 235,200
VeriSign, Inc. (b) 1,500 129,375
----------
3,337,331
COMPUTER SERVICE 2.5%
International Network Services (b) 12,000 484,500
Shared Medical Systems Corporation 3,700 241,425
----------
725,925
COMPUTER SOFTWARE 17.3%
BroadVision, Inc. (b) 11,500 848,125
Check Point Software Technologies, Ltd. (b) 4,600 246,675
Compuware Corporation (b) 16,000 509,000
Electronic Arts, Inc. (b) 5,000 271,250
Extreme Networks, Inc. (b) 5,300 307,731
Gemstar International Group, Ltd. (b) 9,500 619,875
ISS Group, Inc. (b) 11,900 449,225
Intuit, Inc. (b) 4,200 378,525
Juniper Networks, Inc. (b) 500 74,500
Mercury Interactive Corporation (b) 4,000 141,500
New Era of Networks, Inc. (b) 10,000 439,375
Novell, Inc. (b) 11,500 304,750
Rational Software Corporation (b) 8,000 263,500
Veritas Software Corporation (b) 2,500 237,344
----------
5,091,375
COSMETIC & PERSONAL CARE 0.6%
General Nutrition Companies, Inc. (b) 7,500 174,844
ELECTRICAL EQUIPMENT 1.5%
PRI Automation, Inc. (b) 11,800 427,750
ELECTRONIC INSTRUMENTATION 0.7%
Teradyne, Inc. (b) 2,700 193,725
ELECTRONIC PRODUCTS - MISCELLANEOUS 2.1%
Jabil Circuit, Inc. (b) 13,500 609,188
ELECTRONICS - SEMICONDUCTOR/COMPONENT 9.1%
ASM Lithography Holding NV (b) 4,200 249,375
Applied Micro Circuits Corporation (b) 2,500 205,625
Broadcom Corporation (b) 1,100 159,019
LSI Logic Corporation (b) 12,000 553,500
MEMC Electronic Materials, Inc. (b) 21,000 255,938
Micron Technology, Inc. (b) 7,500 302,344
Novellus Systems, Inc. (b) 6,500 443,625
PMC-Sierra, Inc. (b) 4,300 253,431
Vitesse Semiconductor Corporation (b) 1,400 94,412
Xilinx, Inc. (b) 2,500 143,125
----------
2,660,394
FINANCE - MISCELLANEOUS 1.3%
Providian Financial Corporation 4,000 374,000
HEALTHCARE - BIOMEDICAL/GENETIC 1.7%
Biogen, Inc. (b) 4,000 257,250
Millennium Pharmaceuticals, Inc. (b) 6,400 230,400
----------
487,650
HEALTHCARE - PRODUCT 2.3%
Allergan, Inc. 1,000 111,000
Sepracor, Inc. (b) 7,000 568,750
----------
679,750
HOUSEHOLD APPLIANCES & FURNISHINGS 0.4%
Herman Miller, Inc. 6,000 126,000
INSURANCE - ACCIDENT & HEALTH 0.6%
AFLAC, Inc. 3,700 177,138
LEISURE SERVICE 1.0%
SFX Entertainment, Inc. (b) 4,500 288,000
MEDIA - RADIO/TV 1.0%
Clear Channel Communications, Inc. (b) 4,500 310,219
OIL WELL EQUIPMENT & SERVICE 9.1%
Cooper Cameron Corporation (b) 16,000 593,000
ENSCO International, Inc. 24,000 478,500
Global Marine, Inc. (b) 32,200 497,087
Rowan Companies, Inc. (b) 29,000 534,688
Smith International, Inc. (b) 10,000 434,375
Tidewater, Inc. 5,000 152,500
----------
2,690,150
23
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
================================================================================
STRONG MID CAP GROWTH FUND (CONTINUED)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS 0.9%
Georgia-Pacific Corporation 6,000 $ 284,250
RETAIL - DEPARTMENT STORE 2.1%
Kohl's Corporation (b) 8,000 617,500
RETAIL - FOOD CHAIN 0.5%
Whole Foods Marketing, Inc. (b) 3,000 144,188
RETAIL - RESTAURANT 1.9%
Outback Steakhouse, Inc. (b) 5,000 196,562
Starbucks Corporation (b) 10,000 375,625
-----------
572,187
RETAIL - SPECIALTY 7.3%
Abercrombie & Fitch Company Class A (b) 6,000 288,000
American Eagle Outfitters, Inc. (b) 3,000 136,500
Circuit City Stores, Inc. 6,500 604,500
Intimate Brands, Inc. 6,300 298,462
Linens `N Things, Inc. (b) 3,200 140,000
PETsMART, Inc. (b) 27,500 281,875
Tandy Corporation 8,000 391,000
-----------
2,140,337
SAVINGS & LOAN 0.6%
TCF Financial Corporation 6,000 167,250
SHOE & APPAREL MANUFACTURING 0.5%
Tommy Hilfiger Corporation (b) 2,000 147,000
TELECOMMUNICATION EQUIPMENT 4.1%
Aware, Inc. (b) 3,300 152,213
CIENA Corporation (b) 9,500 286,781
General Instrument Corporation (b) 11,000 467,500
Uniphase Corporation (b) 1,800 298,800
-----------
1,205,294
TELECOMMUNICATION SERVICE 4.8%
Cablevision Systems Corporation (b) 4,000 280,000
Covad Communications Group, Inc. (b) 8,000 426,500
Global TeleSystems Group, Inc. (b) 3,700 299,700
WinStar Communications, Inc. (b) 8,500 414,375
-----------
1,420,575
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $25,618,984) 29,377,719
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 5.1%
COMMERCIAL PAPER
INTEREST BEARING, DUE UPON DEMAND
General Mills, Inc., 4.82% $1,512,400 1,512,400
Warner Lambert Company, 4.91% 100 100
-----------
1,512,500
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $1,512,500) 1,512,500
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES (COST $27,131,484) 105.1% 30,890,219
Other Assets and Liabilities, Net (5.1%) (1,512,304)
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $29,377,915
================================================================================
================================================================================
STRONG OPPORTUNITY FUND
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
COMMON STOCKS 87.7%
AEROSPACE & DEFENSE 1.1%
Northrop Grumman Corporation 403,500 $26,757,094
AIRLINE 0.6%
AMR Corporation (b) 108,100 7,377,825
Air New Zealand, Ltd. Class B 2,892,000 6,019,495
-----------
13,397,320
AUTO & TRUCK PARTS 1.1%
Magna International, Inc. Class A 460,500 26,133,375
BANK - MONEY CENTER 1.7%
Bank of America Corporation 415,000 30,424,687
The Bank of Tokyo - Mitsubishi 165,000 2,345,668
ING Groep NV 52,000 2,823,912
Standard Chartered PLC 174,000 2,842,403
-----------
38,436,670
BANK - SUPER REGIONAL 3.8%
Bank One Corporation 484,000 28,828,250
Mellon Bank Corporation 659,600 23,992,950
Wells Fargo Company 790,000 33,772,500
-----------
86,593,700
BEVERAGE - SOFT DRINK 2.8%
The Pepsi Bottling Group, Inc. 1,339,000 30,880,688
Whitman Corporation 1,845,700 33,222,600
-----------
64,103,288
CHEMICAL 0.7%
Rohm and Haas Company 377,294 16,176,480
CHEMICAL - SPECIALTY 2.3%
Praxair, Inc. 535,000 26,181,563
Solutia, Inc. 1,260,000 26,853,750
-----------
53,035,313
COMPUTER - MAINFRAME 1.3%
Sun Microsystems, Inc. (b) 425,000 29,271,875
COMPUTER - PERIPHERAL EQUIPMENT 2.6%
American Power Conversion Corporation (b) 1,700,000 34,212,500
Quantum Corporation (b) 567,100 13,681,288
Seagate Technology, Inc. (b) 456,600 11,700,375
-----------
59,594,163
COMPUTER SERVICE 0.1%
Getronics NV 72,000 2,777,985
COMPUTER SOFTWARE 3.0%
Cadence Design Systems, Inc. (b) 1,859,000 23,702,250
Keane, Inc. (b) 1,106,500 25,034,563
Oracle Systems Corporation (b) 522,800 19,408,950
-----------
68,145,763
CONSUMER - MISCELLANEOUS 0.1%
Canon, Inc. 106,000 3,043,564
CONTAINER 0.0%
Sonoco Products Company 39,200 666,400
DIVERSIFIED OPERATIONS 0.2%
Invensys PLC 1,239,000 5,865,850
ELECTRIC POWER 1.1%
NiSource, Inc. 993,300 25,639,556
ELECTRICAL EQUIPMENT 2.3%
Emerson Electric Company 390,300 24,540,112
W. W. Grainger, Inc. 545,000 29,327,813
-----------
53,867,925
24
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
STRONG OPPORTUNITY FUND (CONTINUED)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
ELECTRONIC PARTS DISTRIBUTION 1.6%
Avnet, Inc. 671,500 $ 31,224,750
Marshall Industries (b) 150,000 5,390,625
------------
36,615,375
ELECTRONIC PRODUCTS - MISCELLANEOUS 2.9%
AVX Corporation 1,500,000 36,562,500
General Motors Corporation Class H (b) 554,000 31,162,500
------------
67,725,000
ELECTRONICS - SEMICONDUCTOR/COMPONENT 2.8%
Micron Technology, Inc. (b) 768,100 30,964,030
Texas Instruments, Inc. 230,000 33,350,000
------------
64,314,030
FOOD 2.2%
ConAgra, Inc. 845,000 22,498,125
H.J. Heinz Company 545,000 27,318,125
------------
49,816,250
HEALTHCARE - MEDICAL SUPPLY 1.3%
Sybron International Corporation (b) 1,082,600 29,839,163
HEALTHCARE - PATIENT CARE 3.6%
Columbia/HCA Healthcare Corporation 1,060,000 24,181,250
HEALTHSOUTH Corporation (b) 2,250,000 33,609,375
United Healthcare Corporation 410,000 25,676,250
------------
83,466,875
HOUSEHOLD APPLIANCES & FURNISHINGS 2.7%
Leggett & Platt, Inc. 1,050,000 29,203,125
Premark International, Inc. 886,000 33,225,000
------------
62,428,125
INSURANCE - DIVERSIFIED 1.5%
CIGNA Corporation 385,000 34,265,000
INSURANCE - PROPERTY & CASUALTY 3.9%
ACE, Ltd. 1,014,500 28,659,625
American International Group, Inc. 305,000 35,704,062
Hartford Financial Services Group, Inc. 451,000 26,298,938
------------
90,662,625
LEISURE PRODUCT 1.1%
The Seagram Company, Ltd. 517,600 26,074,100
LEISURE SERVICE 0.8%
Gaylord Entertainment Company 590,800 17,724,000
MEDIA - PUBLISHING 2.5%
The E.W. Scripps Company Class A 633,600 30,135,600
Tribune Company 310,000 27,008,750
------------
57,144,350
MEDIA - RADIO/TV 4.2%
AT&T Corporation-Liberty Media Group
Class A (b) 1,020,000 37,485,000
Comcast Corporation Class A 775,600 29,812,125
Cox Communications, Inc. Class A (b) 790,000 29,081,875
------------
96,379,000
NATURAL GAS DISTRIBUTION 1.8%
Enron Corporation 496,700 40,605,225
OIL - NORTH AMERICAN EXPLORATION & PRODUCTION 4.8%
Apache Corporation 1,020,000 39,780,000
Barrett Resources Corporation (b) 1,001,000 38,413,375
Devon Energy Corporation 888,100 31,749,575
------------
109,942,950
OIL - NORTH AMERICAN INTEGRATED 1.3%
Unocal Corporation 745,000 29,520,625
OIL WELL EQUIPMENT & SERVICE 4.6%
Baker Hughes, Inc. 1,000,000 33,500,000
Cooper Cameron Corporation (b) 875,000 32,429,688
Weatherford International, Inc. (b) 1,100,000 40,287,500
------------
106,217,188
PAPER & FOREST PRODUCTS 1.0%
The Mead Corporation 580,000 24,215,000
REAL ESTATE 1.6%
Ayala Land, Inc. 2,456,400 777,752
CarrAmerica Realty Corporation 381,600 9,540,000
ProLogis Trust 1,250,000 25,312,500
Shortland Properties, Ltd. 2,513,625 778,083
------------
36,408,335
RETAIL - DEPARTMENT STORE 1.2%
May Department Stores Company 680,000 27,795,000
RETAIL - MAJOR CHAIN 1.5%
The Daiei, Inc. (b) 901,000 3,077,673
Kmart Corporation (b) 1,720,000 28,272,500
Sears Canada, Inc. 141,900 3,047,022
------------
34,397,195
RETAIL - SPECIALTY 1.4%
Office Depot, Inc. (b) 1,420,000 31,328,750
STEEL 0.6%
Nucor Corporation 275,000 13,045,313
TELECOMMUNICATION EQUIPMENT 1.0%
Alcatel SA ADR 845,500 23,991,062
TELECOMMUNICATION SERVICE 11.0%
AT&T Corporation 486,200 27,136,037
Cable & Wireless Communications PLC
Sponsored ADR (b) 215,100 10,432,350
Corning, Inc. 600,000 42,075,000
Global TeleSystems Group, Inc. (b) 161,000 13,041,000
Korea Telecom Corporation Sponsored ADR (b) 75,000 3,000,000
MediaOne Group, Inc. (b) 649,000 48,269,375
Nippon Telegraph & Telephone Corporation 490 5,700,495
Omnipoint Corporation (b) 870,000 25,175,625
Paging Network, Inc. (b) 2,450,300 11,792,068
United States Cellular Corporation (b) 732,300 39,178,050
Vodafone Group PLC Sponsored ADR 134,100 26,417,700
------------
252,217,700
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $1,452,408,150) 2,019,644,557
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 12.1%
COMMERCIAL PAPER 0.1%
INTEREST BEARING, DUE UPON DEMAND
General Mills, Inc., 4.82% $ 100 $ 100
Pitney Bowes Credit Corporation, 4.82% 2,547,800 2,547,800
------------
2,547,900
REPURCHASE AGREEMENTS 11.8%
ABN-AMRO, Inc. (Dated 6/30/99), 4.78%, Due
7/01/99 (Repurchase proceeds $272,036,116);
Collateralized by: SLMA Notes, FNMA Notes,
FHLMC Notes, Federal Home Loan Bank Bonds,
Federal Farm Credit Bank Notes, Tennessee
Valley Authority Bonds, and Resolution Funding
Corporation Bonds (e) 272,000,000 272,000,000
UNITED STATES GOVERNMENT ISSUES 0.2%
United States Treasury Bills:
Due 7/01/99 (c) 1,210,000 1,210,000
Due 8/05/99 (c) 3,000,000 2,987,253
--------------
4,197,253
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $278,744,892) 278,745,153
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES (COST $1,731,153,042) 99.8% 2,298,389,710
Other Assets and Liabilities, Net 0.2% 3,762,548
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $2,302,152,258
================================================================================
25
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
================================================================================
STRONG OPPORTUNITY FUND (CONTINUED)
================================================================================
- --------------------------------------------------------------------------------
FUTURES
- --------------------------------------------------------------------------------
Underlying
Expiration Face Amount Unrealized
Date at Value Appreciation
- --------------------------------------------------------------------------------
Purchased:
109 Nikkei Index 9/99 $9,676,475 $772,538
================================================================================
STRONG STRATEGIC GROWTH FUND
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
COMMON STOCKS 89.8%
AEROSPACE & DEFENSE 2.5%
Kellstrom Industries, Inc. (b) 5,000 $ 91,250
BROKERAGE & INVESTMENT MANAGEMENT 1.1%
Donaldson, Lufkin & Jenrette, Inc. 700 42,175
COMMERCIAL SERVICE 8.6%
RemedyTemp, Inc. Class A (b) 7,100 95,850
Strayer Education, Inc. 2,500 76,719
Sykes Enterprises, Inc. (b) 4,500 150,187
--------
322,756
COMPUTER - PERIPHERAL EQUIPMENT 3.2%
Lexmark International Group, Inc. Class A (b) 1,800 118,913
COMPUTER - PERSONAL & WORKSTATION 2.9%
Netopia, Inc. (b) 2,200 50,050
Security Dynamics Technologies, Inc. (b) 2,800 59,500
--------
109,550
COMPUTER SERVICE 1.8%
Automatic Data Processing, Inc. 1,500 66,000
COMPUTER SOFTWARE 10.8%
BMC Software, Inc. (b) 2,200 118,800
Citrix Systems, Inc. (b) 1,400 79,100
Sterling Software, Inc. (b) 1,700 45,369
Transaction Systems Architects, Inc. (b) 1,200 46,800
Zebra Technologies Corporation (b) 3,000 115,312
--------
405,381
DIVERSIFIED OPERATIONS 3.0%
Tyco International, Ltd. 1,200 113,700
ELECTRONICS - SEMICONDUCTOR/COMPONENT 1.8%
Telcom Semiconductor, Inc. (b) 6,900 66,413
HEALTHCARE - BIOMEDICAL/GENETIC 2.4%
Biogen, Inc. (b) 1,400 90,037
HEALTHCARE - DRUG/DIVERSIFIED 8.1%
Elan Corporation PLC Sponsored ADR (b) 2,800 77,700
Jones Medical Industries, Inc. 3,300 129,938
Warner-Lambert Company 1,400 97,125
--------
304,763
HEALTHCARE - INSTRUMENTATION 2.1%
Medtronic, Inc. 1,000 77,875
HEALTHCARE - MEDICAL SUPPLY 3.0%
Wesley Jessen VisionCare, Inc. (b) 3,500 113,312
HEALTHCARE - PATIENT CARE 3.1%
Covance, Inc. (b 3,000 71,812
Quintiles Transnational Corporation (b) 1,000 42,000
--------
113,812
OIL - NORTH AMERICAN EXPLORATION & PRODUCTION 1.9%
Devon Energy Corporation 2,000 71,500
PERSONAL & COMMERCIAL LENDING 7.1%
Associates First Capital Corporation 2,300 101,919
The CIT Group, Inc. 3,100 89,512
Household International, Inc. 1,600 75,800
--------
267,231
POLLUTION CONTROL 6.3%
Republic Services, Inc. (b) 5,000 123,750
Waste Management, Inc. 2,113 113,574
--------
237,324
REAL ESTATE 5.7%
Apartment Investment & Management Company
Class A 2,000 85,500
Duke Realty Investments, Inc. 2,700 60,919
Mack-Cali Realty Corporation 2,100 64,969
--------
211,388
RETAIL - DRUG STORE 2.9%
CVS Corporation 2,100 106,575
RETAIL - FOOD CHAIN 2.5%
US Foodservice (b) 2,200 93,775
RETAIL - SPECIALTY 2.9%
Global Imaging Systems, Inc. (b) 6,000 109,500
TELECOMMUNICATION SERVICE 2.8%
Network Plus Corporation (b) 500 10,438
Sprint Corporation 1,800 95,062
--------
105,500
TRANSPORTATION SERVICE 3.3%
C.H. Robinson Worldwide, Inc. 3,400 124,950
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $2,874,329) 3,363,680
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 11.2%
COMMERCIAL PAPER
INTEREST BEARING, DUE UPON DEMAND
General Mills, Inc., 4.82% $172,200 172,200
Pitney Bowes Credit Corporation, 4.82% 26,700 26,700
Warner Lambert Company, 4.91% 153,000 153,000
Wisconsin Electric Power Company, 4.91% 68,100 68,100
--------
420,000
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $420,000) 420,000
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES (COST $3,294,329) 101.0% 3,783,680
Other Assets and Liabilities, Net (1.0%) (35,956)
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $3,747,724
================================================================================
LEGEND
- --------------------------------------------------------------------------------
(a) Short-term investments include any security which has a maturity of less
than one year.
(b) Non-income producing security.
(c) All or a portion of security pledged to cover margin requirements for
futures contracts.
(d) Restricted security.
(e) See Note 2(I) of Notes to Financial Statements.
(f) Affiliated Issuer. (See Note 7 of Notes to Financial Statements.)
Percentages are stated as a percent of net assets.
See Notes to Financial Statements.
26
<PAGE>
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
- -----------------------------------------------------------------------------------------------------------------------
June 30, 1999 (Unaudited)
(In Thousands, Except Per Share Amounts)
<CAPTION>
STRONG STRONG STRONG STRONG MID CAP
COMMON DISCOVERY GROWTH DISCIPLINED
STOCK FUND FUND FUND FUND
---------- --------- ------ --------------
ASSETS:
Investments in Securities, at Value
Unaffiliated Issuers (Cost of $1,172,606, $218,785,
<S> <C> <C> <C> <C>
$1,525,371 and $6,785, respectively) $1,477,779 $244,122 $2,175,457 $7,138
Affiliated Issuers (Cost of $7,826, $653,
$0, and $0, respectively) 18,047 468 -- --
Receivable for Securities Sold 3,040 2,572 13,633 62
Receivable for Fund Shares Sold 42 2 221 --
Dividends and Interest Receivable 964 99 337 6
Other Assets 93 33 113 16
---------- -------- ---------- ------
Total Assets 1,499,965 247,296 2,189,761 7,222
LIABILITIES:
Payable for Securities Purchased 3,832 3,850 20,486 171
Payable for Fund Shares Redeemed 4 11 30 --
Accrued Operating Expenses and Other Liabilities 380 248 260 21
---------- -------- ---------- ------
Total Liabilities 4,216 4,109 20,776 192
---------- -------- ---------- ------
NET ASSETS $1,495,749 $243,187 $2,168,985 $7,030
========== ======== ========== ======
NET ASSETS CONSIST OF:
Capital Stock (par value and paid-in capital) $1,020,524 $240,778 $1,322,652 $6,269
Accumulated Net Investment Loss (464) (824) (8,008) (14)
Accumulated Net Realized Gain (Loss) 160,491 (21,864) 204,255 422
Net Unrealized Appreciation 315,198 25,097 650,086 353
---------- -------- ---------- ------
Net Assets $1,495,749 $243,187 $2,168,985 $7,030
========== ======== ========== ======
Capital Shares Outstanding (Unlimited Number Authorized) 61,565 14,459 83,278 546
NET ASSET VALUE PER SHARE $24.30 $16.82 $26.05 $12.88
====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
STRONG STRONG STRONG
MID CAP OPPORTUNITY STRATEGIC
GROWTH FUND FUND GROWTH FUND
----------- ----------- -----------
ASSETS:
Investments in Securities, at Value
<S> <C> <C> <C>
(Cost of $27,131, $1,731,153 and $3,294, respectively) $30,890 $2,298,390 $3,784
Receivable for Securities Sold 1,303 8,659 6
Receivable for Fund Shares Sold -- 662 15
Dividends and Interest Receivable 8 1,498 2
Other Assets 35 90 4
------- ---------- ------
Total Assets 32,236 2,309,299 3,811
LIABILITIES:
Payable for Securities Purchased 2,827 6,695 59
Payable for Fund Shares Redeemed -- 280 --
Accrued Operating Expenses and Other Liabilities 31 172 4
------- ---------- ------
Total Liabilities 2,858 7,147 63
------- ---------- ------
NET ASSETS $29,378 $2,302,152 $3,748
======= ========== ======
NET ASSETS CONSIST OF:
Capital Stock (par value and paid-in capital) $20,341 $1,505,124 $3,020
Accumulated Net Investment Income (Loss) (128) 2,111 (16)
Undistributed Net Realized Gain 5,406 226,907 255
Net Unrealized Appreciation 3,759 568,010 489
------- ---------- ------
Net Assets $29,378 $2,302,152 $3,748
======= ========== ======
Capital Shares Outstanding (Unlimited Number Authorized) 1,773 51,711 294
NET ASSET VALUE PER SHARE $16.57 $44.52 $12.75
====== ====== ======
27
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
For the Six Months Ended June 30, 1999 (Unaudited)
(In Thousands)
<CAPTION>
STRONG STRONG STRONG STRONG MID CAP STRONG STRONG STRONG
COMMON DISCOVERY GROWTH DISCIPLINED MID CAP OPPORTUNITY STRATEGIC
STOCK FUND FUND FUND FUND GROWTH FUND FUND GROWTH FUND
---------- --------- ------ -------------- ----------- ----------- -----------
INCOME:
Dividends (net of withholding taxes of
$30, $0, $0, $0 $0, $24 and $0,
<S> <C> <C> <C> <C> <C> <C> <C>
respectively) $ 4,232 $ 990 $ 1,773 $ 13 $ 32 $ 9,164 $ 9
Interest 3,346 194 2,553 9 31 5,201 7
-------- ------- -------- ---- ------ -------- ----
Total Income 7,578 1,184 4,326 22 63 14,365 16
EXPENSES:
Investment Advisory Fees 6,802 1,294 9,660 18 110 10,206 16
Custodian Fees 50 25 49 16 8 58 2
Shareholder Servicing Costs 932 345 2,127 4 35 1,564 8
Professional Fees 37 26 68 3 7 43 5
Reports to Shareholders 173 87 341 6 8 301 2
Federal and State Registration Fees 15 14 47 18 14 37 19
Other 33 9 42 1 9 45 1
-------- ------- -------- ---- ------ -------- ----
Total Expenses Before Waivers
and Absorptions 8,042 1,800 12,334 66 191 12,254 53
Involuntary Expense Waivers
and Absorptions by Advisor -- -- -- (30) -- -- (21)
-------- ------- -------- ---- ------ -------- ----
Expenses, Net 8,042 1,800 12,334 36 191 12,254 32
-------- ------- -------- ---- ------ -------- ----
NET INVESTMENT INCOME (LOSS) (464) (616) (8,008) (14) (128) 2,111 (16)
REALIZED AND UNREALIZED GAIN (LOSS):
Net Realized Gain (Loss) on:
Investments 169,230 (2,936) 248,605 423 5,879 241,837 347
Futures Contracts and Options (2,946) (7,906) (2,087) (1) -- (3,977) --
Foreign Currencies (2) -- -- -- -- -- --
-------- ------- -------- ---- ------ -------- ----
Net Realized Gain (Loss) 166,282 (10,842) 246,518 422 5,879 237,860 347
Net Change in Unrealized Appreciation/
Depreciation on:
Investments 85,449 (4,626) 54,880 353 (378) 124,470 90
Futures Contracts and Options (10) (492) -- -- -- 225 --
Foreign Currencies (3) -- -- -- -- (3) --
-------- ------- -------- ---- ------ -------- ----
Net Change in Unrealized
Appreciation/Depreciation 85,436 (5,118) 54,880 353 (378) 124,692 90
-------- ------- -------- ---- ------ -------- ----
NET GAIN (LOSS) ON INVESTMENTS 251,718 (15,960) 301,398 775 5,501 362,552 437
-------- ------- -------- ---- ------ -------- ----
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $251,254 ($16,576) $293,390 $761 $5,373 $364,663 $421
======== ======= ======== ==== ====== ======== ====
See Notes to Financial Statements.
</TABLE>
28
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------
(In Thousands)
<CAPTION>
STRONG COMMON STOCK FUND STRONG DISCOVERY FUND
-------------------------------- -------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 Dec. 31, 1998 June 30, 1999 Dec. 31, 1998
---------------- ------------- ---------------- -------------
(Unaudited) (Unaudited)
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) ($ 464) $ 180 ($ 616) ($ 1,317)
Net Realized Gain (Loss) 166,282 128,303 (10,842) 27,775
Net Change in Unrealized Appreciation/Depreciation 85,436 (40,049) (5,118) (3,936)
---------- ---------- -------- --------
Net Increase (Decrease) in Net Assets
Resulting from Operations 251,254 88,434 (16,576) 22,522
DISTRIBUTIONS FROM NET REALIZED GAINS (48,528) (86,285) (3,366) (4,244)
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold 75,935 254,809 50,071 247,185
Proceeds from Reinvestment of Distributions 47,039 83,552 3,297 4,134
Payment for Shares Redeemed (269,852) (465,436) (112,234) (330,613)
---------- ---------- -------- --------
Net Decrease in Net Assets from Capital
Share Transactions (146,878) (127,075) (58,866) (79,294)
---------- ---------- -------- --------
TOTAL INCREASE (DECREASE) IN NET ASSETS 55,848 (124,926) (78,808) (61,016)
NET ASSETS:
Beginning of Period 1,439,901 1,564,827 321,995 383,011
---------- ---------- -------- --------
End of Period $1,495,749 $1,439,901 $243,187 $321,995
========== ========== ======== ========
TRANSACTIONS IN SHARES OF THE FUND:
Sold 3,469 11,860 2,975 14,251
Issued in Reinvestment of Distributions 2,255 4,039 212 235
Redeemed (12,525) (21,988) (6,670) (19,075)
------ ------ ----- ------
Net Decrease in Shares of the Fund (6,801) (6,089) (3,483) (4,589)
===== ===== ===== =====
See Notes to Financial Statements.
29
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------------------------------------------------
(In Thousands)
<CAPTION>
STRONG GROWTH FUND STRONG MID CAP DISCIPLINED FUND
--------------------------------- -------------------------------
Six Months Ended Year Ended Six Months Ended
June 30, 1999 Dec. 31, 1998 June 30, 1999
---------------- ------------- -------------------------------
(Unaudited) (Unaudited) (Note 1)
OPERATIONS:
<S> <C> <C> <C>
Net Investment Loss ($ 8,008) ($ 10,416) ($ 14)
Net Realized Gain 246,518 104,907 422
Net Change in Unrealized Appreciation/Depreciation 54,880 304,272 353
---------- ---------- ------
Net Increase in Net Assets Resulting from Operations 293,390 398,763 761
DISTRIBUTIONS FROM NET REALIZED GAINS (66,238) (37) --
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold 305,791 379,839 9,188
Proceeds from Reinvestment of Distributions 64,809 36 --
Payment for Shares Redeemed (263,442) (602,747) (2,919)
Net Proceeds from Acquisition (Note 8) -- 61,697 --
---------- ---------- ------
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 107,158 (161,175) 6,269
---------- ---------- ------
TOTAL INCREASE IN NET ASSETS 334,310 237,551 7,030
NET ASSETS:
Beginning of Period 1,834,675 1,597,124 --
---------- ---------- ------
End of Period $2,168,985 $1,834,675 $7,030
========== ========== ======
TRANSACTIONS IN SHARES OF THE FUND:
Sold 12,499 19,329 791
Issued in Reinvestment of Distributions 2,662 2 --
Redeemed (10,808) (30,918) (245)
Issued to Effect Acquisition (Note 8) -- 3,292 --
----- ----- ---
Net Increase (Decrease) in Shares of the Fund 4,353 (8,295) 546
===== ===== ===
</TABLE>
See Notes to Financial Statements.
30
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------------------------------------------------
(In Thousands)
<CAPTION>
STRONG MID CAP GROWTH FUND STRONG OPPORTUNITY FUND
-------------------------------- --------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 Dec. 31, 1998 June 30, 1999 Dec. 31, 1998
---------------- ------------- ---------------- -------------
(Unaudited) (Unaudited)
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) ($ 128) ($ 172) $ 2,111 $ 3,089
Net Realized Gain 5,879 22 237,860 213,971
Net Change in Unrealized Appreciation/Depreciation (378) 1,987 124,692 61,275
------- ------- ---------- ----------
Net Increase in Net Assets Resulting from Operations 5,373 1,837 364,663 278,335
DISTRIBUTIONS:
From Net Investment Income -- -- (44) (2,486)
From Net Realized Gains -- -- (60,524) (220,319)
------- ------- ---------- ----------
Total Distributions -- -- (60,568) (222,805)
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold 18,728 23,567 211,978 348,997
Proceeds from Reinvestment of Distributions -- -- 59,194 217,297
Payment for Shares Redeemed (14,020) (21,772) (311,042) (508,783)
------- ------- ---------- ----------
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 4,708 1,795 (39,870) 57,511
------- ------- ---------- ----------
TOTAL INCREASE IN NET ASSETS 10,081 3,632 264,225 113,041
NET ASSETS:
Beginning of Period 19,297 15,665 2,037,927 1,924,886
------- ------- ---------- ----------
End of Period $29,378 $19,297 $2,302,152 $2,037,927
======= ======= ========== ==========
TRANSACTIONS IN SHARES OF THE FUND:
Sold 1,268 1,888 5,124 8,778
Issued in Reinvestment of Distributions -- -- 1,542 5,578
Redeemed (976) (1,784) (7,726) (13,034)
----- ----- ----- ------
Net Increase (Decrease) in Shares of the Fund 292 104 (1,060) 1,322
===== ===== ===== ======
See Notes to Financial Statements.
31
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- ----------------------------------------------------------------------------------------------------
(In Thousands)
<CAPTION>
STRONG STRATEGIC GROWTH FUND
---------------------------------
Six Months Ended Year Ended
June 30, 1999 Dec. 31, 1998
---------------- -------------
(Unaudited) (Note 1)
OPERATIONS:
<S> <C> <C>
Net Investment Loss ($ 16) ($ 9)
Net Realized Gain (Loss) 347 (91)
Net Change in Unrealized Appreciation/Depreciation 90 399
------ ------
Net Increase in Net Assets Resulting from Operations 421 299
DISTRIBUTIONS FROM NET INVESTMENT INCOME -- --
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold 1,432 5,323
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (1,571) (2,156)
------ ------
Net Increase (Decrease) in Net Assets from Capital Share Transactions (139) 3,167
------ ------
TOTAL INCREASE IN NET ASSETS 282 3,466
NET ASSETS:
Beginning of Period 3,466 --
------ ------
End of Period $3,748 $3,466
====== ======
TRANSACTIONS IN SHARES OF THE FUND:
Sold 126 528
Issued in Reinvestment of Distributions -- --
Redeemed (140) (220)
--- ---
Net Increase (Decrease) in Shares of the Fund (14) 308
=== ===
</TABLE>
See Notes to Financial Statements.
32
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
June 30, 1999 (Unaudited)
1. ORGANIZATION
The accompanying financial statements represent the Strong Growth Funds
(the "Funds"), which include the following funds, each with its own
investment objectives and policies:
- Strong Common Stock Fund, Inc. (1)
- Strong Discovery Fund, Inc. (1)
- Strong Growth Fund (a series of Strong Equity Funds, Inc. (1))
- Strong Mid Cap Disciplined Fund (a series of Strong Equity Funds, Inc.
(1))
- Strong Mid Cap Growth Fund (a series of Strong Equity Funds, Inc. (1))
formerly known as Strong Mid Cap Fund
- Strong Opportunity Fund, Inc. (1)
- Strong Strategic Growth Fund (a series of Strong Equity Funds, Inc.
(1))
(1) A diversified, open-end management investment company registered under
the Investment Company Act of 1940.
Strong Strategic Growth Fund commenced operations on June 30, 1998. Strong
Mid Cap Disciplined Fund commenced operations on January 4, 1999.
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 -- Portfolio securities traded primarily on a
principal securities exchange are valued at the last reported sales
price or the mean of the latest bid and asked prices where no last
sales price is available. Securities traded over-the-counter are
valued at the mean of the latest bid and asked prices or the last
reported sales price. Debt securities not traded on a principal
securities exchange are valued through valuations obtained from a
commercial pricing service, otherwise sale or bid prices are used.
Securities for which market quotations are not readily available are
valued at fair value as determined in good faith under consistently
applied procedures established by and under the general supervision of
the Board of Directors. Securities which are purchased within 60 days
of their stated maturity are valued at amortized cost, which
approximates fair value.
The Funds may own certain investment securities which are restricted
as to resale. These securities are valued after giving due
consideration to pertinent factors including recent private sales,
market conditions and the issuer's financial performance. The Funds
generally bear the costs, if any, associated with the disposition of
restricted securities. Aggregate cost and fair value of these
restricted securities held at June 30, 1999 were as follows:
Aggregate Aggregate Percent of
Cost Fair Value Net Assets
----------- ---------- ----------
STRONG COMMON STOCK FUND $13,876,120 $3,126,144 0.2%
STRONG DISCOVERY FUND 652,995 468,157 0.2%
(B) Federal Income and Excise Taxes and Distributions to Shareholders --
The Funds intend to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute substantially all of their taxable income to their
shareholders in a manner which results in no tax cost to the Funds.
Therefore, no federal income or excise tax provision is required.
The character of distributions made during the year from net
investment income or net realized gains for financial statement
purposes may differ from the characterization for federal income tax
purposes due to differences in the recognition of income and expense
items for financial statement and tax purposes. Where appropriate,
reclassifications between net asset accounts are made for such
differences that are permanent in nature.
Each Fund generally pays dividends from net investment income and
distributes any net capital gains that it realizes annually.
(C) Realized Gains and Losses on Investment Transactions -- Investment
security transactions are recorded as of the trade date. Gains or
losses realized on investment transactions are determined by comparing
the identified cost of the security lot sold with the net sales
proceeds.
(D) Certain Investment Risks -- The Funds may utilize derivative
instruments including options, futures and other instruments with
similar characteristics to the extent that they are consistent with
the Funds' investment objectives and limitations. The Funds intend to
use such derivative instruments primarily to hedge or protect from
adverse movements in securities prices or interest rates. The use of
these instruments may involve risks such as the possibility of
illiquid markets or imperfect correlation between the value of the
instruments and the underlying securities, or that the counterparty
will fail to perform its obligations.
Investments in foreign denominated assets or forward currency
contracts may involve greater risks than domestic investments, due to
currency, political and economic, regulatory and market risks.
33
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
June 30, 1999 (Unaudited)
(E) Futures -- Upon entering into a futures contract, the Funds pledge to
the broker cash or other investments equal to the minimum "initial
margin" requirements of the exchange. Additional securities held by
the Funds may be designated as collateral on open futures contracts.
The Funds also receive from or pay to the broker an amount of cash
equal to the daily fluctuation in the value of the contract. Such
receipts or payments are known as "variation margin" and are recorded
as unrealized gains or losses. When the futures contract is closed, a
realized gain or loss is recorded equal to the difference between the
value of the contract at the time it was opened and the value at the
time it was closed.
(F) Options -- The Funds may write put or call options. Premiums received
by the Funds upon writing put or call options are recorded as an asset
with a corresponding liability which is subsequently adjusted to the
current market value of the option. When an option expires, is
exercised, or is closed, the Funds realize a gain or loss, and the
liability is eliminated. The Funds continue to bear the risk of
adverse movements in the price of the underlying asset during the
period of the option, although any potential loss during the period
would be reduced by the amount of the option premium received.
(G) Foreign Currency Translation -- Investment securities and other assets
and liabilities initially expressed 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.
(H) Forward Foreign Currency Exchange Contracts -- Forward foreign
currency exchange contracts are valued at the forward rate and are
marked-to-market daily. The change in market value is recorded as an
unrealized gain or loss. When the contract is closed, the Funds record
an exchange gain or loss equal to the difference between the value of
the contract at the time it was opened and the value at the time it
was closed.
(I) Repurchase Agreements -- The Funds may enter into repurchase
agreements with institutions that the Funds' investment advisor,
Strong Capital Management, Inc. ("the Advisor"), has determined are
creditworthy pursuant to criteria adopted by the Board of Directors.
Each repurchase agreement is recorded at cost. The Funds require that
the collateral, represented by securities (primarily U.S. Government
securities), in a repurchase transaction be maintained in a segregated
account with a custodian bank in a manner sufficient to enable the
Funds to obtain those securities in the event of a default of the
repurchase agreement. On a daily basis, the Advisor monitors each
repurchase agreement to ensure the value of the collateral, including
accrued interest, is at least equal to the amounts owed to the Funds
under each repurchase agreement.
(J) Use of Estimates -- The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts in these financial statements. Actual results could differ
from those estimates.
(K) Other -- Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income is recorded on the
accrual basis and includes amortization of premiums and discounts.
3. RELATED PARTY TRANSACTIONS
The Advisor, with whom certain officers and directors of the Funds are
affiliated, provides investment advisory 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.
Based on the terms of the Advisory Agreements, advisory fees and other
expenses will be waived by the Advisor if the Fund's operating expenses
exceed 2% of the average daily net assets of the Fund. In addition, the
Fund's Advisor may voluntarily waive or absorb certain expenses at their
discretion. Shareholder recordkeeping and related service fees are based on
contractually established rates for each open and closed shareholder
account. The Advisor is compensated for certain other services related to
costs incurred for reports to shareholders.
The Funds may invest cash in money market funds sponsored and managed by
the Advisor, subject to certain limitations. The terms of such transactions
are identical to those of non-related entities except that, to avoid
duplicate investment advisory fees, advisory fees of each Fund are reduced
by an amount equal to advisory fees paid to the Advisor under its
investment advisory agreement with the money market funds.
34
<PAGE>
- --------------------------------------------------------------------------------
Certain information regarding related party transactions, excluding the
effects of waivers and absorptions, for the six months ended June 30, 1999,
is as follows:
Shareholder
Payable to Servicing and Other Unaffiliated
Advisor at Expenses Directors'
June 30, 1999 Paid to Advisor Fees
------------- ------------------- ------------
STRONG COMMON STOCK FUND $111,580 $ 997,352 $6,632
STRONG DISCOVERY FUND 14,069 358,951 2,066
STRONG GROWTH FUND 96,808 2,042,337 8,276
STRONG MID CAP DISCIPLINED FUND 2 3,485 750
STRONG MID CAP GROWTH FUND 25,740 34,230 750
STRONG OPPORTUNITY FUND 93,983 1,596,034 9,122
STRONG STRATEGIC GROWTH FUND (128) 6,310 750
4. LINE OF CREDIT
The Strong Funds have established a line of credit agreement ("LOC") with
certain financial institutions to be used for temporary or emergency
purposes, primarily for financing redemption payments. Combined borrowings
among all participating Strong Funds are subject to a $350 million cap on
the total line of credit. For individual Funds, borrowings under the LOC
are limited to either the lesser of 15% of the market value of total assets
or any explicit borrowing limits in the Funds' prospectus. Borrowings under
the LOC bear interest based on prevailing market rates as defined in the
LOC. A commitment fee of .07% per annum is incurred on the unused portion
of the line of credit and is allocated to all participating Strong Funds.
At June 30, 1999, there were no borrowings by the Funds outstanding under
the LOC.
5. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of long-term securities during the six
months ended June 30, 1999, were as follows:
Purchases Sales
-------------- --------------
STRONG COMMON STOCK FUND $ 509,442,913 $ 680,852,613
STRONG DISCOVERY FUND 247,317,007 289,342,306
STRONG GROWTH FUND 2,749,003,688 2,721,082,271
STRONG MID CAP DISCIPLINED FUND 9,026,389 3,385,178
STRONG MID CAP GROWTH FUND 100,592,146 95,091,052
STRONG OPPORTUNITY FUND 781,645,835 835,124,190
STRONG STRATEGIC GROWTH FUND 2,496,407 2,836,863
6. INCOME TAX INFORMATION
The investment cost, gross unrealized appreciation and depreciation on
investments and capital loss carryovers (expiring in varying amounts
through 2007) for federal income tax purposes were as follows:
<TABLE>
at June 30, 1999 at December 31, 1998
--------------------------------------------------------------- --------------------
<CAPTION>
Federal Tax Unrealized Unrealized Net Net Capital Loss
Cost Appreciation Depreciation Appreciation Carryovers
-------------- ------------ ------------ ------------ ----------------
<S> <C> <C> <C> <C> <C>
STRONG COMMON STOCK FUND $1,185,370,119 $405,879,181 $95,423,500 $310,455,681 $ --
STRONG DISCOVERY FUND 224,548,803 42,718,967 22,678,097 20,040,870 --
STRONG GROWTH FUND 1,553,089,410 630,397,181 8,029,503 622,367,678 15,174,979
STRONG MID CAP DISCIPLINED FUND 6,805,920 600,112 268,109 332,003 --
STRONG MID CAP GROWTH FUND 27,981,889 3,080,115 171,785 2,908,330 517,673
STRONG OPPORTUNITY FUND 1,742,482,985 618,190,175 62,283,450 555,906,725 --
STRONG STRATEGIC GROWTH FUND 3,317,320 543,115 76,755 466,360 68,378
35
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
June 30, 1999 (Unaudited)
7. INVESTMENTS IN AFFILIATES
Affiliated issuers, as defined under the Investment Company Act of 1940,
include those in which the Fund's holdings represent 5% or more of the
outstanding voting securities of the issuer, and any other Strong Fund. A
summary of transactions in the securities of these issuers during the six
months ended June 30, 1999 is as follows:
<TABLE>
<CAPTION>
Balance of Balance of Dividend/Interest
Shares or Par Gross Gross Sales Shares or Par Value Income Realized
Value Held Purchases and Value Held June 30, Jan.1 - June 30, Gain/(Loss)
Jan. 1, 1999 and Additions Reductions June 30, 1999 1999 1999 on Sale
------------ ------------- ----------- ------------- -------- ----------------- ----------
STRONG COMMON STOCK FUND
- ------------------------
<S> <C> <C> <C> <C> <C> <C>
IHOP Corporation 470,000 375,000 (95,000) 750,000 $18,046,875 -- $1,501,267
STRONG DISCOVERY FUND
- ---------------------
Halsey Drug Company, Inc.
Common Stock 398,055 -- (398,055) -- -- -- (1,225,081)
Halsey Drug Company, Inc.
Restricted Common Stock 13,845 9,230 -- 23,075 50,627 -- --
Halsey Drug Company, Inc.
Convertible Bonds 600,000 -- -- 600,000 404,994 -- --
Halsey Drug Company, Inc.
Warrants 21,429 -- -- 21,429 12,536 -- --
</TABLE>
8. ACQUISITION INFORMATION
Effective October 30, 1998, Strong Growth Fund acquired, through a
non-taxable exchange, substantially all the net assets of Strong Small Cap
Fund. Strong Growth Fund issued 3,292,272 shares (valued at $61,697,184)
for the 6,353,984 shares of Strong Small Cap Fund outstanding at October
30, 1998. The net assets of $61,697,184 of Strong Small Cap Fund included
net unrealized depreciation on investments of $6,038,997, undistributed net
investment losses of $1,076,450, accumulated realized net losses of
$12,771,247 and capital loss carryovers of $15,711,933 which were combined
with those of Strong Growth Fund. Strong Growth Fund utilized $536,954 of
these capital loss carryforwards in 1998.
36
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------------------------------------
STRONG COMMON STOCK FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PERIOD ENDED
--------------------------------------------------------------------------------
<CAPTION>
June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data(a) 1999(b) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $21.06 $21.02 $20.24 $19.77 $16.74 $17.94
Income From Investment Operations
Net Investment Income (Loss) (0.01) 0.00(c) 0.01 0.06 0.11 0.04
Net Realized and Unrealized Gains (Losses)
on Investments 4.04 1.36 4.67 3.87 5.25 (0.13)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 4.03 1.36 4.68 3.93 5.36 (0.09)
Less Distributions
From Net Investment Income -- -- (0.01) (0.06) (0.10) (0.04)
In Excess of Net Investment Income -- -- (0.03) (0.05) (0.02) --
From Net Realized Gains (0.79) (1.32) (3.86) (3.35) (2.21) (1.07)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.79) (1.32) (3.90) (3.46) (2.33) (1.11)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $24.30 $21.06 $21.02 $20.24 $19.77 $16.74
====================================================================================================================================
Ratios and Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return +19.7% +6.6% +24.0% +20.5% +32.4% -0.5%
Net Assets, End of Period (In Millions) $1,496 $1,440 $1,565 $1,244 $1,061 $790
Ratio of Expenses to Average Net Assets 1.2%* 1.2% 1.2% 1.2% 1.2% 1.3%
Ratio of Net Investment Income (Loss) to Average
Net Assets (0.1%)* 0.0%(c) 0.0%(c) 0.3% 0.5% 0.3%
Portfolio Turnover Rate 39.1% 102.6% 117.3% 90.9% 91.5% 83.0%
STRONG DISCOVERY FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PERIOD ENDED
--------------------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data(a) 1999(b) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $17.95 $17.00 $17.45 $18.96 $15.67 $18.05
Income From Investment Operations
Net Investment Income (Loss) (0.05) (0.07) (0.16) (0.15) (0.05) 0.16
Net Realized and Unrealized Gains (Losses)
on Investments (0.86) 1.26 2.00 0.35 5.48 (1.17)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (0.91) 1.19 1.84 0.20 5.43 (1.01)
Less Distributions
From Net Investment Income -- -- -- -- -- (0.11)
In Excess of Net Investment Income -- -- -- (1.12) (0.10) (0.58)
From Net Realized Gains (0.22) (0.24) (1.90) (0.59) (2.04) (0.68)
In Excess of Net Realized Gains -- -- (0.39) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.22) (0.24) (2.29) (1.71) (2.14) (1.37)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $16.82 $17.95 $17.00 $17.45 $18.96 $15.67
====================================================================================================================================
Ratios and Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return -5.0% +7.0% +10.9% +1.5% +34.8% -5.7%
Net Assets, End of Period (In Millions) $243 $322 $383 $514 $599 $388
Ratio of Expenses to Average Net Assets 1.4%* 1.3% 1.4% 1.4% 1.4% 1.5%
Ratio of Net Investment Income (Loss) to Average
Net Assets (0.5%)* (0.4%) (0.9%) (0.3%) (0.4%) 0.7%
Portfolio Turnover Rate 94.1% 185.9% 169.9% 792.8% 516.0% 606.1%
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund outstanding for the entire period.
(b) For the six months ended June 30, 1999 (unaudited).
(c) Amount calculated is less than $0.01 or 0.1%.
See Notes to Financial Statements.
37
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
STRONG GROWTH FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PERIOD ENDED
--------------------------------------------------------------------------------
<CAPTION>
June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data(a) 1999(b) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $23.25 $18.31 $18.50 $15.88 $11.61 $10.00
Income From Investment Operations
Net Investment Loss (0.10) (0.13) (0.08) (0.03) (0.04) (0.00)(c)
Net Realized and Unrealized Gains
on Investments 3.73 5.07 3.41 3.13 4.79 1.72
- ------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 3.63 4.94 3.33 3.10 4.75 1.72
Less Distributions
From Net Investment Income -- -- -- -- -- --
In Excess of Net Investment Income -- -- -- (0.02) (0.03) (0.11)
From Net Realized Gains (0.83) (0.00)(c) (2.70) (0.46) (0.16) --
In Excess of Net Realized Gains -- -- (0.82) -- (0.29) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.83) (0.00)(c) (3.52) (0.48) (0.48) (0.11)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $26.05 $23.25 $18.31 $18.50 $15.88 $11.61
====================================================================================================================================
Ratios and Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return +15.9% +27.0% +19.1% +19.5% +41.0% +17.3%
Net Assets, End of Period (In Millions) $2,169 $1,835 $1,597 $1,308 $643 $106
Ratio of Expenses to Average Net Assets 1.3%* 1.3% 1.3% 1.3% 1.4% 1.6%
Ratio of Net Investment Loss to Average
Net Assets (0.8%)* (0.7%) (0.5%) (0.2%) (0.5%) (0.1%)
Portfolio Turnover Rate 145.4% 248.6% 295.7% 294.9% 321.2% 385.8%
</TABLE>
STRONG MID CAP DISCIPLINED FUND
- ----------------------------------------------------------------
PERIOD ENDED
------------
June 30,
Selected Per-Share Data(a) 1999(b)
- ----------------------------------------------------------------
Net Asset Value, Beginning of Period $10.00
Income From Investment Operations
Net Investment Loss (0.03)
Net Realized and Unrealized Gains on Investments 2.91
- ----------------------------------------------------------------
Total from Investment Operations 2.88
Less Distributions
From Net Investment Income --
- ----------------------------------------------------------------
Total Distributions --
- ----------------------------------------------------------------
Net Asset Value, End of Period $12.88
================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------
Total Return +28.8%
Net Assets, End of Period (In Millions) $7
Ratio of Expenses to Average Net Assets 2.0%*
Ratio of Net Investment Loss to Average Net Assets (0.8%)*
Portfolio Turnover Rate 87.7%
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
(b) For the six months ended June 30, 1999 (unaudited).
(c) Amount calculated is less than $0.01.
See Notes to Financial Statements.
38
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------------------
STRONG MID CAP GROWTH FUND
- -------------------------------------------------------------------------------------------
PERIOD ENDED
---------------------------------------
<CAPTION>
June 30, Dec. 31, Dec. 31,
Selected Per-Share Data(a) 1999(b) 1998 1997
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $13.03 $11.38 $10.00
Income From Investment Operations
Net Investment Loss (0.07) (0.12) (0.09)
Net Realized and Unrealized Gains on Investments 3.61 1.77 1.47
- -------------------------------------------------------------------------------------------
Total from Investment Operations 3.54 1.65 1.38
Less Distributions
From Net Investment Income -- -- --
- -------------------------------------------------------------------------------------------
Total Distributions -- -- --
- -------------------------------------------------------------------------------------------
Net Asset Value, End of Period $16.57 $13.03 $11.38
===========================================================================================
Ratios and Supplemental Data
- -------------------------------------------------------------------------------------------
Total Return +27.2% +14.5% +13.9%
Net Assets, End of Period (In Millions) $29 $19 $16
Ratio of Expenses to Average Net Assets 1.7%* 1.7% 1.6%
Ratio of Net Investment Loss to Average Net Assets (1.1%)* (0.9%) (0.9%)
Portfolio Turnover Rate 432.9% 206.9% 305.2%
</TABLE>
<TABLE>
STRONG OPPORTUNITY FUND
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Period Ended
-------------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data(a) 1999(b) 1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $38.62 $37.41 $35.26 $33.35 $27.71 $28.23
Income From Investment Operations
Net Investment Income 0.04 0.05 0.10 0.20 0.20 0.13
Net Realized and Unrealized Gains on Investments 7.07 5.68 7.90 5.78 7.28 0.76
- --------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 7.11 5.73 8.00 5.98 7.48 0.89
Less Distributions
From Net Investment Income 0.00(c) (0.05) (0.10) (0.20) (0.20) (0.13)
In Excess of Net Investment Income -- -- -- (0.05) (0.01) --
From Net Realized Gains (1.21) (4.47) (5.75) (3.82) (1.63) (1.28)
- --------------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.21) (4.52) (5.85) (4.07) (1.84) (1.41)
- --------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $44.52 $38.62 $37.41 $35.26 $33.35 $27.71
================================================================================================================================
Ratios and Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------------
Total Return +18.9% +15.5% +23.5% +18.1% +27.3% +3.2%
Net Assets, End of Period (In Millions) $2,302 $2,038 $1,925 $1,770 $1,328 $806
Ratio of Expenses to Average Net Assets 1.2%* 1.2% 1.2% 1.3% 1.3% 1.4%
Ratio of Net Investment Income to Average Net Assets 0.2%* 0.2% 0.3% 0.6% 0.7% 0.5%
Portfolio Turnover Rate 42.4% 86.0% 93.7% 103.3% 92.5% 59.2%
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund outstanding for the entire period.
(b) For the six months ended June 30, 1999 (unaudited).
(c) Amount calculated is less than $0.01.
See Notes to Financial Statements.
39
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
STRONG STRATEGIC GROWTH FUND
- ----------------------------------------------------------------------------
Period Ended
----------------------
June 30, Dec. 31,
Selected Per-Share Data(a) 1999(b) 1998(c)
- ----------------------------------------------------------------------------
Net Asset Value, Beginning of Period $11.25 $10.00
Income From Investment Operations
Net Investment Loss (0.06) (0.03)
Net Realized and Unrealized Gains on Investments 1.56 1.28
- ----------------------------------------------------------------------------
Total from Investment Operations 1.50 1.25
Less Distributions
From Net Investment Income -- --
- ----------------------------------------------------------------------------
Total Distributions -- --
- ----------------------------------------------------------------------------
Net Asset Value, End of Period $12.75 $11.25
============================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------
Total Return +13.3% +12.5%
Net Assets, End of Period (In Millions) $4 $3
Ratio of Expenses to Average Net Assets 2.0%* 2.0%*
Ratio of Net Investment Loss to Average Net Assets (1.0%)* (0.5%)*
Portfolio Turnover Rate 78.8% 59.7%
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
(b) For the six months ended June 30, 1999 (unaudited).
(c) For the period from June 30, 1998 (inception) to December 31, 1998.
See Notes to Financial Statements.
40
<PAGE>
DIRECTORS
Richard S. Strong
Willie D. Davis
Stanley Kritzik
Marvin E. Nevins
William F. Vogt
OFFICERS
Richard S. Strong, Chairman of the Board
Mary F. Hoppa, Vice President
John S. Weitzer, Vice President
Stephen J. Shenkenberg, Vice President and Secretary
John W. Widmer, Treasurer
INVESTMENT ADVISOR
Strong Capital Management, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
DISTRIBUTOR
Strong Investments, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
CUSTODIAN
Firstar Bank Milwaukee, N.A.
P.O. Box 701, Milwaukee, Wisconsin 53201
TRANSFER AGENT AND DIVIDEND-DISBURSING AGENT
Strong Capital Management, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
100 East Wisconsin Avenue, Milwaukee, Wisconsin 53202
LEGAL COUNSEL
Godfrey & Kahn, S.C.
780 North Water Street, Milwaukee, Wisconsin 53202
<PAGE>
For a prospectus containing more complete information, including management fees
and expenses, please call 1-800-368-1030. Please read it carefully before
investing or sending money. This report does not constitute an offer for the
sale of securities. Strong Funds are offered for sale by prospectus only.
[PICTURE OF TELEPHONE]
To order a free prospectus kit,
CALL 1-800-368-1030.
To learn more about our funds,
discuss an existing account,
or conduct a transaction,
CALL 1-800-368-3863.
--------------------
If you are a
Financial Professional,
CALL 1-800-368-1683
[PICTURE OF STRONG WEB SITE ON COMPUTER]
Strong On-line
www.strongfunds.com
[STRONG LOGO]
STRONG FUNDS
P.O. Box 2936 o Milwaukee, Wisconsin 53201
Strong Investments, Inc. 12425H99 SGRO
<PAGE>
