<PAGE>
THE STRONG
MONEY MARKET
FUND
SEMI-ANNUAL REPORT o APRIL 30, 1997
[PIE CHART OF ASSET DIVERSIFICATION EMPHASIZING CASH]
[STRONG LOGO]
STRONG FUNDS
<PAGE>
EIGHT BASIC PRINCIPLES FOR SUCCESSFUL MUTUAL FUND INVESTING
These common-sense rules are followed by many successful investors. They make
sense for beginners, too. If you have a question on these principles, or would
like to discuss them with us, please contact us at 1-800-368-3863. We're here 24
hours a day, seven days a week to take your call.
- ---------------------------------------1----------------------------------------
HAVE A PLAN.
[PICTURE OF FOLDER LABELED INVESTMENTS]
Even a simple plan can help you take control of your financial future. Review
your plan once a year, or if your circumstances change.
- ---------------------------------------2----------------------------------------
START INVESTING AS SOON AS POSSIBLE.
[PICTURE OF CLOCK]
Make time a valuable ally. Let it put the power of compounding to work for you,
while helping to reduce your potential investment risk.
- ---------------------------------------3----------------------------------------
DIVERSIFY YOUR PORTFOLIO.
[PICTURE OF PIE CHART OF ASSET DIVERSIFICATION]
By investing in different asset classes - stocks, bonds, and cash - you help
protect against poor performance in one type of investment while including
investments most likely to help you achieve your important goals.
- ---------------------------------------4----------------------------------------
INVEST REGULARLY.
[PICTURE OF MEMO REMINDER TO INVEST]
Investing is a process, not a one-time event. By investing regularly over the
long term, you reduce the impact of short-term market gyrations, and you attend
to your long-term plan before you're tempted to spend those assets on short-term
needs.
- ---------------------------------------5----------------------------------------
MAINTAIN A LONG-TERM PERSPECTIVE.
[PICTURE OF GRAPH SLOPING UPWARD]
For most individuals, the best discipline is staying invested as market
conditions change. Reactive, emotional investment decisions are all too often a
source of regret - and of principal loss.
- ---------------------------------------6----------------------------------------
CONSIDER STOCKS TO HELP ACHIEVE MAJOR LONG-TERM GOALS.
[PICTURE OF PIE CHART OF ASSET DIVERSIFICATION EMPHASIZING STOCKS]
Over time, stocks have provided the more powerful returns needed to help the
value of your investments stay well ahead of inflation.
- ---------------------------------------7----------------------------------------
KEEP A COMFORTABLE AMOUNT OF CASH IN YOUR PORTFOLIO.
[PICTURE OF DOLLAR SIGN]
To meet current needs, including emergencies, use a money market fund or a bank
account - not your long-term investment assets.
- ---------------------------------------8----------------------------------------
KNOW WHAT YOU'RE BUYING.
[PICTURE OF MAGNIFYING GLASS]
Make sure you understand the potential risks and rewards associated with each of
your investments. Ask questions...request information...make up your own mind.
And choose a fund company that helps you make informed investment decisions.
<PAGE>
THE STRONG
MONEY MARKET
FUND
SEMI-ANNUAL REPORT o APRIL 30, 1997
TABLE OF CONTENTS
INVESTMENT REVIEW
The Strong Money Market Fund .........................................2
FINANCIAL INFORMATION
Schedule of Investments in Securities ................................4
Statement of Assets and Liabilities ..................................9
Statement of Operations ..............................................9
Statement of Changes in Net Assets ..................................10
Notes to Financial Statements .......................................11
FINANCIAL HIGHLIGHTS .....................................................12
<PAGE>
THE STRONG MONEY MARKET FUND
OUR INTENTION IS TO MAINTAIN A NEAR-NEUTRAL INVESTMENT STANCE AS WE SEEK TO
PROVIDE AN ATTRACTIVE MONEY-FUND INVESTMENT.
The Strong Money Market Fund seeks current income, a stable share price, and
daily liquidity. The Fund invests in corporate, bank, and government instruments
that present minimal credit risk.(1)
CONTINUED STRONG PERFORMANCE
The Strong Money Market Fund continued to post outstanding performance relative
to its peer group of money market funds. Through April 30, Lipper Analytical
Services, Inc. has ranked the Fund among the top 10% of all money market funds
for the 1-year, 5-year, and 10-year periods, based on total return.
===========================================
LIPPER TOTAL
RETURN RANKINGS(2)
As of 4-30-97
===========================================
1-YEAR #21 OF 293
5-YEAR #6 OF 177
10-YEAR #5 OF 106
Category: Money Market Funds. Rankings
and performance are historical and do not
represent future performance. Source
of Lipper rankings is Lipper Analytical
Services, Inc.
===========================================
LOOKING BACK
The first six months of the Fund's fiscal year can really be divided into two
periods. First, in November and December 1996, the bond market rallied as
investors expected the economy to slow in the first quarter of 1997. However, by
early 1997, the market recognized that the economy was stronger than previously
forecast. Furthermore, it became apparent that the Federal Reserve would need to
raise short-term interest rates to slow economic growth and head off potential
increases in inflation.
The Fed met the market's expectations on March 25, raising its target for the
federal funds rate to 5.50% from 5.25%. Major U.S. banks swiftly followed,
raising the prime lending rate to 8.50%. After hovering around the 5.35% level
for most of 1997's first few months, three-month commercial paper rates rose 25
basis points to the 5.60% level in the last two weeks of March.
The Fund maintained a neutral average maturity posture--that is, one that
indicates we don't anticipate a lasting, major shift in interest rates--for most
of the six months, running between 40 and 55 days. Although interest rates at
the end of April were higher than in November, the market had stabilized within
a month of the Fed's hike. Most investors appeared to believe that any increases
in short-term interest rates needed to slow economic growth would be relatively
small.
Although we believe we can attribute much of our performance to our research and
selection of specific issues, we have now set up the portfolio to also benefit
from the general interest-rate environment. At the beginning of this period in
November, we had the Fund positioned for a neutral market, distributing our
maturities fairly evenly across the short-term spectrum. Shortly before the
Fed's interest-rate hike, however, we shifted toward a modified barbell
posture-- that is, we invested a larger portion of the Fund in one-month
maturity issues and put a small fraction of assets out into the six-month and
one-year maturity range. This positioning allowed us to take advantage of
pockets of opportunity as the environment favored longer-term issues, while
still keeping our average maturity in a neutral range.
2
<PAGE>
A WORD ABOUT MERCURY FINANCE
As you may be aware, one of the companies whose commercial paper the Fund
invested in was Mercury Finance Corporation. In late January 1997, Mercury
Finance caught the financial community off guard by announcing that it had found
"accounting irregularities" that resulted in having overstated earnings for the
previous several years. Upon release of the news, the company's stock price
plummeted, and it was unable to make payment on its debt obligations--including
the paper the Fund held.
Strong Capital Management, Inc., the Fund's advisor, immediately took action to
protect shareholders by buying the commercial paper from the Fund at full value
(i.e., its amortized cost). As a result of this purchase, investors in the Fund
felt no impact from the Mercury situation.
Even though you were not affected financially by this turn of events, we
understand that it can be disconcerting. That's why we want to assure you that
this situation had nothing to do with misreading a company's creditworthiness;
this was a matter of a company's audited and interim financial statements not
accurately representing the facts.
OUTLOOK
We expect a modest rise in short-term interest rates, given the likelihood that
at least one more Fed rate hike may be forthcoming over the next half-year or
so. While a sustained sharp rise in rates, as we experienced in 1994, is
unlikely, it does appear that some further tightening of monetary policy may be
necessary to prevent the rekindling of inflation. Overall, our intention is to
maintain a near-neutral investment stance as we seek to provide an attractive
money fund investment.
As always, we thank you for your confidence. We remain committed to helping you
meet your investment needs now and in the future.
Sincerely,
/s/ Jay N. Mueller
Jay N. Mueller
Portfolio Manager
[PHOTO OF JAY N. MUELLER]
=================================
YIELD SUMMARY(3)
As of 4-30-97
=================================
7-DAY CURRENT YIELD 5.24%
7-DAY EFFECTIVE YIELD 5.38%
AVERAGE MATURITY 60 DAYS
=================================
================================================================================
3-MONTH T-BILL YIELDS THROUGH APRIL 1997
================================================================================
[GRAPH]
4-96 5.15%
5-96 5.18%
6-96 5.16%
7-96 5.31%
8-96 5.28%
9-96 5.03%
10-96 5.15%
11-96 5.13%
12-96 5.17%
1-97 5.15%
2-97 5.22%
3-97 5.32%
4-97 5.23%
Source: Bloomberg
================================================================================
1 An investment in the Fund is neither insured nor guaranteed by the U.S.
government. There can be no assurance that the Fund will be able to
maintain a stable net asset value of $1.00 per share.
2 From time to time the Fund's Advisor has waived its management fee and
absorbed Fund expenses resulting in higher returns.
3 Yields are annualized for the 7-day period ended April 30, 1997. Effective
yield reflects the compounding of income. Yields are historical and do not
represent future yields, which will fluctuate. The Fund's Advisor
temporarily waived fees of 0.02% and absorbed expenses of 0.34% during the
7-day period ended 4-30-97. Otherwise, the Fund's current yield would have
been 4.88%, and its effective yield would have been 5.00%.
3
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS IN SECURITIES April 30, 1997 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL YIELD TO MATURITY AMORTIZED
AMOUNT MATURITY DATE (a) COST (b)
SECURITY (In Thousands) (In Thousands)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSIT 5.1%
Deutsche Bank AG New York, 6.18% $23,000 6.20% 4/03/98 $ 22,996
Huntington National Bank, 6.25% 22,000 6.28 4/24/98 21,994
National Bank of Canada, 5.87% 27,400 5.87 9/29/97 27,400
Societe Generale:
6.08% 14,000 6.11 3/27/98 13,996
6.34% 11,000 6.38 4/16/98 10,996
----------
TOTAL CERTIFICATES OF DEPOSIT 97,382
COMMERCIAL PAPER 73.6%
AESOP Funding Corporation (Acquired 4/22/97; Cost $24,826) (c) 25,000 5.59 6/06/97 24,861
Aetna Services, Inc. 6,710 5.60 5/23/97 6,687
4,800 5.57 5/29/97 4,779
2,000 5.57 5/30/97 1,991
5,000 5.58 6/03/97 4,974
10,000 5.57 6/06/97 9,944
Alamo Funding L.P. (Acquired 4/10/97 - 4/16/97; Cost $26,912) (c) 27,150 5.59 6/09/97 26,986
Alpine Securitization Corporation (Acquired 4/08/97; Cost $24,337) (c) 24,550 5.57 6/03/97 24,425
American Home Products Corporation (Acquired 4/10/97; Cost $17,808) (c) 18,000 5.57 6/18/97 17,866
American Honda Finance Corporation 10,000 5.33 5/06/97 9,993
5,935 5.40 5/15/97 5,923
5,000 5.58 6/10/97 4,969
4,000 5.60 6/11/97 3,975
Anaheim, California Electric System 27,000 5.56 5/01/97 27,000
Asset Backed Capital Financial, Inc.:
(Acquired 3/03/97; Cost $2,773) (c) 2,800 5.40 5/08/97 2,797
(Acquired 12/06/96; Cost $12,673) (c) 13,000 5.42 5/22/97 12,959
(Acquired 4/08/97; Cost $8,705) (c) 8,800 5.62 6/16/97 8,737
Avon Capital Corporation:
(Acquired 3/24/97; Cost $7,440) (c) 7,500 5.58 5/15/97 7,484
(Acquired 4/15/97; Cost $9,410) (c) 9,500 5.61 6/16/97 9,432
(Acquired 4/18/97; Cost $9,901) (c) 10,000 5.63 6/20/97 9,922
Barton Capital Corporation:
(Acquired 4/04/97; Cost $5,950) (c) 6,000 5.60 5/28/97 5,975
(Acquired 4/21/97; Cost $12,881) (c) 13,000 5.57 6/19/97 12,901
(Acquired 4/01/97; Cost $6,542) (c) 6,652 5.65 7/15/97 6,574
Browning-Ferris Industries, Inc.:
(Acquired 4/24/97; Cost $3,590) (c) 3,600 5.62 5/12/97 3,594
(Acquired 4/17/97; Cost $9,955) (c) 10,000 5.57 5/16/97 9,977
CSC Enterprises 5,000 5.40 5/08/97 4,995
20,000 5.60 6/20/97 19,845
Calcasieu Parish, Louisiana 17,000 5.65 6/13/97 17,000
Calcot, Ltd. 4,000 5.40 5/01/97 4,000
2,000 5.45 5/08/97 1,998
California Pollution Control Financing Authority (Acquired 4/23/97;
Cost $10,000) (c) 10,000 5.73 7/17/97 10,000
Coca-Cola Enterprises, Inc.
(Acquired 3/20/97; Cost $8,936) (c) 9,000 5.44 5/06/97 8,993
(Acquired 4/29/97; Cost $9,957) (c) 10,000 5.58 5/27/97 9,960
Countrywide Home Loans, Inc. 12,000 5.61 5/20/97 11,964
14,000 5.55 5/22/97 13,955
Credit Suisse First Boston, Inc. (Acquired 4/28/97; Cost $3,274) (c) 3,300 5.57 6/18/97 3,275
Dean Witter, Discover & Company 6,500 5.55 6/20/97 6,450
13,050 5.61 7/02/97 12,924
Delaware Funding Corporation (Acquired 3/18/97; Cost $11,849) (c) 12,000 5.45 6/09/97 11,929
Delaware Group Dividend and Income Fund, Inc. (Acquired 2/25/97; Cost $3,946)(c) 4,000 5.30 5/28/97 3,984
Echlin, Inc. 10,235 5.39 5/02/97 10,233
Embarcadero Center-Venture Four 13,830 5.62 5/15/97 13,800
Equitable of Iowa Companies 10,000 5.61 5/15/97 9,978
5,000 5.64 5/23/97 4,983
10,100 5.60 5/29/97 10,056
Eureka Securitization, Inc.:
(Acquired 3/17/97; Cost $19,352) (c) 19,500 5.37 5/07/97 19,483
(Acquired 4/14/97; Cost $9,912) (c) 10,000 5.57 6/10/97 9,938
Finova Capital Corporation 10,000 5.54 5/23/97 9,966
2,000 5.60 6/16/97 1,986
5,100 5.59 6/19/97 5,061
See notes to financial statements.
4
<PAGE>
- ----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL YIELD TO MATURITY AMORTIZED
AMOUNT MATURITY DATE (a) COST (b)
SECURITY (In Thousands) (In Thousands)
- ----------------------------------------------------------------------------------------------------------------------------------
First Data Corporation $11,000 5.58% 6/17/97 $ 10,920
7,000 5.65 7/07/97 6,926
8,400 5.63 7/22/97 8,292
Franklin Resources, Inc.:
(Acquired 4/04/97; Cost $8,907) (c) 9,000 5.61 6/09/97 8,945
(Acquired 4/10/97 - 4/24/97; Cost $10,895) (c) 11,000 5.60 6/18/97 10,918
Frontier Corporation (Acquired 3/24/97; Cost $8,915) (c) 9,000 5.65 5/23/97 8,969
GTE Corporation 13,000 5.55 5/28/97 12,946
General Signal Corporation (Acquired 4/28/97; Cost $13,524) (c) 13,600 5.58 6/03/97 13,530
Glencore Financial Bermuda, Ltd. 28,800 5.44 8/29/97 28,278
Green Tree Financial Corporation 5,000 5.65 5/07/97 4,995
3,500 5.67 5/21/97 3,489
12,700 5.65 5/28/97 12,646
Greenwich Funding Corporation (Acquired 4/15/97; Cost $20,903) (c) 21,000 5.55 5/15/97 20,955
Harris County, Texas Industrial Development Corporation Solid Waste
Disposal Revenue (Acquired 4/25/97; Cost $20,000) (c) 20,000 5.70 6/17/97 20,000
Heller Financial, Inc. 11,700 5.72 5/16/97 11,672
Household International, Inc. (Acquired 4/01/97; Cost $9,903) (c) 10,000 5.61 6/02/97 9,950
International Securitization Corporation:
(Acquired 3/04/97; Cost $11,182) (c) 11,325 5.40 5/27/97 11,280
(Acquired 4/22/97; Cost $14,851) (c) 15,000 5.60 6/25/97 14,872
JES Developments, Inc. (Acquired 4/11/97; Cost $9,963) (c) 10,000 5.53 5/05/97 9,994
Jefferson Smurfit Finance Corporation 2,500 5.57 6/10/97 2,485
Johnson Controls, Inc. 271 5.28 Upon Demand 271
Kamehameha Schools - Bishop Estate (Acquired 4/25/97; Cost $9,868) (c) 10,000 5.67 7/18/97 9,877
Kitty Hawk Funding Corporation (Acquired 3/17/97; Cost $27,616) (c) 28,000 5.42 6/16/97 27,806
Lehman Brothers Holdings, Inc. 11,000 5.56 5/30/97 10,951
7,000 5.55 7/23/97 6,910
Lexington Parker Capital Corporation:
(Acquired 4/08/97; Cost $9,948) (c) 10,000 5.58 5/12/97 9,983
(Acquired 4/21/97; Cost $13,919) (c) 14,000 5.60 5/28/97 13,941
Market Street Funding Corporation:
(Acquired 4/14/97; Cost $14,926) (c) 15,000 5.56 5/16/97 14,965
(Acquired 4/03/97; Cost $9,927) (c) 10,000 5.58 5/20/97 9,971
Matson Navigation Company, Inc. 10,400 5.58 6/12/97 10,332
Merrill Lynch & Company, Inc. 5,340 5.35 5/02/97 5,339
22,800 5.57 6/12/97 22,652
Minolta Corporation 5,000 5.62 6/24/97 4,958
Monsanto Company 6,000 5.54 6/19/97 5,955
National Australia Funding Delaware, Inc. 28,375 5.60 7/01/97 28,106
National Fuel Gas Company 5,000 5.58 5/12/97 4,991
7,000 5.58 6/09/97 6,958
New York City General Obligation 17,000 5.50 5/19/97 17,000
11,200 5.72 6/02/97 11,200
7,800 5.70 6/04/97 7,800
6,000 5.73 6/24/97 6,000
Nordbanken N.A., Inc. 19,280 5.38 5/02/97 19,277
7,000 5.53 5/21/97 6,979
Nynex Corporation 3,000 5.35 5/09/97 2,996
10,000 5.54 5/19/97 9,972
Oakland-Alameda County, California Coliseum Authority 23,500 5.59 5/12/97 23,500
Oklahoma State Industrial Financing Authority 3,100 5.60 5/01/97 3,100
3,100 5.80 8/01/97 3,100
Old Line Funding Corporation:
(Acquired 4/02/97; Cost $6,956) (c) 7,000 5.60 5/12/97 6,988
(Acquired 4/14/97; Cost $4,976) (c) 5,000 5.55 5/16/97 4,988
(Acquired 4/16/97; Cost $13,929) (c) 14,000 5.54 5/20/97 13,959
Orix America, Inc. (Acquired 4/03/97; Cost $9,902) (c) 10,000 5.68 6/04/97 9,946
PHH Corporation 14,000 5.52 5/01/97 14,000
Peacock Funding Corporation (Acquired 3/04/97; Cost $9,902) (c) 10,000 5.34 5/09/97 9,988
A.H. Robins Company, Inc. (Acquired 4/23/97; Cost $4,966) (c) 5,000 5.56 6/06/97 4,972
Salomon, Inc. 10,850 5.75 5/14/97 10,827
2,230 5.75 5/16/97 2,225
10,000 5.75 5/21/97 9,968
See notes to financial statements.
5
<PAGE>
SCHEDULE OF INVESTMENTS IN SECURITIES (continued) April 30, 1997 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL YIELD TO MATURITY AMORTIZED
AMOUNT MATURITY DATE (a) COST (b)
SECURITY (In Thousands) (In Thousands)
- ----------------------------------------------------------------------------------------------------------------------------------
Sherwin-Williams Company:
(Acquired 1/07/97; Cost $24,556) (c) $25,000 5.42% 5/05/97 $ 24,985
(Acquired 1/07/97; Cost $24,548) (c) 25,000 5.42 5/07/97 24,977
(Acquired 1/07/97; Cost $19,618) (c) 20,000 5.42 5/14/97 19,961
Sigma Finance, Inc. (Acquired 4/04/97; Cost $25,111) (c) 25,400 5.62 6/16/97 25,218
Society of the New York Hospital Fund, Inc. 10,000 5.60 6/11/97 9,936
Sotheby's, Inc. 15,000 5.60 5/19/97 14,958
South Western Electricity, PLC:
(Acquired 4/03/97; Cost $5,775) (c) 5,800 5.65 5/01/97 5,800
(Acquired 4/10/97 - 4/16/97; Cost $26,247) (c) 26,343 5.63 5/08/97 26,314
Sunshine State Government Finance 7,473 5.37 5/06/97 7,467
Tambrands, Inc. 3,000 5.80 10/07/97 2,923
Torchmark Corporation 4,600 5.55 5/01/97 4,600
Towson Town Center, Inc. 16,500 5.60 5/19/97 16,454
Tribune Company:
(Acquired 3/24/97; Cost $14,911) (c) 15,000 5.60 5/02/97 14,998
(Acquired 3/26/97; Cost $7,144) (c) 7,200 5.63 5/15/97 7,184
(Acquired 4/30/97; Cost $2,973) (c) 3,000 5.65 6/27/97 2,973
Triple-A One Funding Corporation:
(Acquired 4/02/97; Cost $7,928) (c) 8,000 5.59 5/30/97 7,964
(Acquired 4/21/97; Cost $6,597) (c) 6,652 5.58 6/13/97 6,608
U.S. Bancorp 17,000 5.58 6/19/97 16,871
Variable Funding Capital Corporation (Acquired 4/15/97; Cost $22,032) (c) 22,134 5.55 5/15/97 22,086
West Baton Rouge Parish, Louisiana (Acquired 4/09/97; Cost $8,000) (c) 8,000 5.65 6/17/97 8,000
Wisconsin Electric Power Company 9 5.30 Upon Demand 9
Xerox Corporation 6,750 5.53 6/11/97 6,708
----------
TOTAL COMMERCIAL PAPER 1,403,288
CORPORATE FLOATING RATE NOTES 1.3%
Credit Suisse First Boston, Inc. Medium Term Notes (Acquired 6/30/95;
Cost $25,000) (c) 25,000 5.96 7/07/97 25,000
CORPORATE OBLIGATIONS 7.4%
Bank of America NT & SA Short-Term Bank Notes, Tranche #156, 5.50% 28,000 5.50 6/20/97 28,000
Fifth Third Bank Central Indiana Short-Term Senior Bank Notes, Tranche #3, 5.44% 28,000 5.44 5/13/97 28,000
General Motors Acceptance Corporation Medium Term Notes:
Tranche #148, 6.13% 10,000 6.33 4/23/98 9,981
Tranche #162, 6.15% 5,000 6.38 5/22/98 4,989
Tranche #598, 7.50% 5,000 5.81 11/04/97 5,042
International Business Machines Corporation Medium Term Notes, Tranche #7, 5.65% 30,000 5.75 1/22/98 29,979
Johnson Controls, Inc. Medium Term Notes, Tranche #8, 7.18% 11,000 6.00 10/03/97 11,055
MGM Grand Hotel Finance Corporation First Mortgage Notes, 12.00%
(Defeased to call at $105.333 on 5/01/97) 14,000 6.42 5/01/97 14,746
Waste Management, Inc. Liquid Yield Option Notes, Zero % 22,950 5.68 6/30/97 9,485
----------
TOTAL CORPORATE OBLIGATIONS 141,277
NON-AGENCY MORTGAGE AND ASSET-BACKED SECURITIES 0.5%
Reig Commercial Mortgage Funding Trust II Mortgage-Backed Notes, Series 96-1,
Class A-1, 5.675%, Due 12/26/97 (Acquired 12/09/96; Cost $9,333) (c) 9,333 5.68 12/26/97 9,333
TAXABLE VARIABLE RATE PUT BONDS 7.1%
Alabama Industrial Development Authority - S -Tool Project 7,700 5.85 5/01/97 7,700
Aurora, Kane & DuPage Counties, Illinois Industrial Development Revenue 1,500 5.90 5/01/97 1,500
Chattanooga, Tennessee Industrial Development Board Revenue - Radisson Read
Project 3,660 6.24 5/01/97 3,660
Community Health Systems, Inc. 3,700 5.75 5/07/97 3,700
Health Midwest Ventures Group, Inc. 8,400 5.75 5/07/97 8,400
Illinois Housing Development Authority Revenue 14,345 5.79 5/01/97 14,345
J.H. Siroonian, Inc. 4,975 5.72 5/07/97 4,975
Kinder-Care Learning Centers, Inc. Industrial Refunding - Kinder-Care Learning
Centers, Inc. Projects 4,000 5.80 5/07/97 4,000
Mississippi Business Finance Corporation Industrial Development - Morton
International, Inc. 14,500 5.79 5/01/97 14,500
Montgomery County, Pennsylvania Industrial Development Authority Revenue 3,805 5.80 5/07/97 3,805
New Jersey Economic Development Authority Economic Development Revenue -
MSNBC/CNBC 10,000 5.69 5/01/97 10,000
New Jersey Sports & Exposition Authority Sports Complex Subordinated Refunding
Revenue 21,275 5.79 5/01/97 21,275
Passaic County, New Jersey General Obligation Refunding 13,800 5.65 5/07/97 13,800
South Carolina Jobs - Economic Development Authority Industrial Development
Revenue - Roller Bearing Company of America, Inc. Project 3,000 6.04 5/01/97 3,000
Southeast Atlantic Properties, LLC 1,668 5.85 5/01/97 1,668
See notes to financial statements.
6
<PAGE>
- ----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL YIELD TO MATURITY AMORTIZED
AMOUNT MATURITY DATE (a) COST (b)
SECURITY (In Thousands) (In Thousands)
- ----------------------------------------------------------------------------------------------------------------------------------
Stanislaus County, California Pension Obligation $10,000 5.79% 5/01/97 $ 10,000
Thayer Properties, LLC 3,575 5.85 5/01/97 3,575
Tifton Mall, Inc. 4,000 5.85 5/01/97 4,000
Virginia Housing Development Authority Multifamily Housing Revenue 1,980 5.79 5/01/97 1,980
----------
TOTAL TAXABLE VARIABLE RATE PUT BONDS 135,883
UNITED STATES GOVERNMENT AND AGENCY ISSUES 5.3%
Federal Home Loan Banks Consolidated Bonds, 5.78% 10,000 5.78 1/28/98 10,000
Federal National Mortgage Association Medium Term Notes, 5.51% 25,000 5.59 2/24/98 24,984
Student Loan Marketing Association Floating Rate Notes
5.55% 5,000 5.55 5/06/97 5,000
5.57% 10,000 5.57 5/08/97 10,000
United States Treasury Notes, 8.75% 50,000 5.45 10/15/97 50,740
----------
TOTAL UNITED STATES GOVERNMENT AND AGENCY ISSUES 100,724
----------
TOTAL INVESTMENTS IN SECURITIES 100.3% 1,912,887
Other Assets and Liabilities, Net (0.3%) (6,499)
----------
NET ASSETS 100.0% $1,906,388
==========
See notes to financial statements.
7
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS IN SECURITIES (continued) April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
PERCENTAGE OF
INDUSTRY DIVERSIFICATION NET ASSETS
- ------------------------------------------------------------
Non-Agency Asset Backed ..............................17.2%
Finance - Miscellaneous ...............................8.1
Bank - Super Regional .................................7.8
General Obligation ....................................6.2
Brokerage & Investment Management .....................6.1
Industrial Development Revenue ........................5.3
Housing Related .......................................3.7
U.S. Government .......................................2.7
Bank - Regional .......................................2.6
Mortgage & Related Service ............................2.5
Automobile ............................................2.3
Personal & Commercial Lending .........................2.0
Leisure Service .......................................1.9
Commercial Service ....................................1.7
Electric Power ........................................1.7
Computer - Mainframe ..................................1.6
Cosmetic & Personal Care ..............................1.6
Pollution Control Revenue .............................1.6
Insurance - Diversified ...............................1.5
Insurance - Life ......................................1.5
Metals & Mining .......................................1.5
Real Estate ...........................................1.4
Telephone .............................................1.4
Computer Service ......................................1.3
Federal National Mortgage Association .................1.3
Media - Publishing ....................................1.3
Healthcare - Drug/Diversified .........................1.2
Hospital Revenue ......................................1.2
Pollution Control .....................................1.2
Beverage - Soft Drink .................................1.0
Retail - Specialty ....................................0.8
Student Loan Marketing Association ....................0.8
Electrical Equipment ..................................0.7
Diversified Operations ................................0.6
Natural Gas Distribution ..............................0.6
Auto & Truck Parts ....................................0.5
Federal Home Loan Mortgage Corporation ................0.5
Non-Agency Commercial .................................0.5
Other Revenue .........................................0.5
Shipping ..............................................0.5
Telecommunication Service .............................0.5
Agricultural Operations ...............................0.3
Chemical ..............................................0.3
Leisure Product .......................................0.3
Office Automation .....................................0.3
Closed-End Fund .......................................0.2
Other Assets and Liabilities, Net ....................(0.3)
------
100.0%
======
LEGEND
- ------
(a) Maturity date represents actual maturity or the longer of the next put date
or interest adjustment date. For U.S. Government Agency Securities,
maturity date represents actual maturity or the next interest adjustment
date.
(b) Amortized cost for Federal income tax and financial reporting purposes is
the same.
(c) Restricted security.
All principal amounts and costs are stated in thousands.
Percentages are stated as a percent of net assets.
See notes to financial statements.
8
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
April 30, 1997 (Unaudited)
(In Thousands, Except Per Share Amounts)
ASSETS:
Investments in Securities, at Amortized Cost $1,912,887
Interest Receivable 5,934
Other Assets 33
----------
Total Assets 1,918,854
LIABILITIES:
Payable to Brokers for Securities Purchased 4,100
Dividends Payable 8,194
Accrued Operating Expenses and Other Liabilities 172
----------
Total Liabilities 12,466
----------
NET ASSETS $1,906,388
==========
Capital Shares Outstanding (Unlimited Number Authorized) 1,906,388
NET ASSET VALUE PER SHARE $1.00
=====
NET ASSETS CONSIST OF:
Capital (Par Value and Paid-In Capital) $1,906,388
==========
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Six Months Ended April 30, 1997 (Unaudited)
(In Thousands)
INTEREST INCOME $53,906
EXPENSES:
Investment Advisory Fees 4,838
Custodian Fees 37
Shareholder Servicing Costs 2,238
Reports to Shareholders 1,047
Other 110
-------
Total Expenses before Waivers and Absorptions 8,270
Voluntary Expense Waivers and Absorptions by Advisor (3,724)
-------
Expenses, Net 4,546
-------
NET INVESTMENT INCOME 49,360
Net Realized Loss on Investments (14,444)
-------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $34,916
=======
See notes to financial statements.
9
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
(In Thousands)
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1997 OCT. 31, 1996
---------------- -------------
(UNAUDITED)
<S> <C> <C>
OPERATIONS:
Net Investment Income $ 49,360 $ 105,316
Net Realized Loss on Investments (14,444) __
---------- ----------
Increase in Net Assets Resulting from Operations 34,916 105,316
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold 1,729,571 3,787,630
Proceeds from Reinvestment of Dividends 47,126 99,980
Payment for Shares Redeemed (1,819,571) (3,872,419)
---------- ----------
Net Increase (Decrease) in Net Assets from Capital Share Transactions (42,874) 15,191
CAPITAL CONTRIBUTION (NOTE 4) 14,444 __
DISTRIBUTIONS:
From Net Investment Income (49,360) (105,316)
---------- ----------
TOTAL INCREASE (DECREASE) IN NET ASSETS (42,874) 15,191
NET ASSETS:
Beginning of Period 1,949,262 1,934,071
---------- ----------
End of Period $1,906,388 $1,949,262
========== ==========
TRANSACTIONS IN SHARES OF THE FUND:
Sold 1,729,571 3,787,630
Issued in Reinvestment of Dividends 47,126 99,980
Redeemed (1,819,571) (3,872,419)
---------- ----------
Net Increase (Decrease) (42,874) 15,191
========== ==========
See notes to financial statements.
10
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
April 30, 1997 (Unaudited)
1. ORGANIZATION
The Strong Money Market Fund, Inc. is a diversified, open-end management
investment company registered under the Investment Company Act of 1940.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements.
(A) Security Valuation -- Investments are valued at amortized cost, which
approximates current value. Amortized cost for federal income tax and
financial reporting purposes is the same.
The Fund owns certain investment securities which are restricted as to
resale. These securities are valued by the Fund after giving due
consideration to pertinent factors, including recent private sales,
market conditions and the issuer's financial performance. The Fund
generally bears the costs, if any, associated with the disposition of
restricted securities. Aggregate cost and fair value of these
restricted securities at April 30, 1997 were $756,579,991 and
$760,250,448, respectively, representing 39.9% of the net assets of
the Fund. Of these securities, which are restricted to resale, 100%
are eligible for resale pursuant to Rule 144A under the Securities Act
of 1933 and also have been determined to be liquid by the Advisor
based upon guidelines established by the Fund's Board of Directors.
(B) Federal Income and Excise Taxes and Distributions to Shareholders --
It is the Fund's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and
to distribute substantially all of its taxable income to its
shareholders in a manner which results in no tax cost to the Fund.
Therefore, no federal income or excise tax provision is required.
(C) Other -- Investment security transactions are recorded on the trade
date. Dividend 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
Strong Capital Management, Inc. (the "Advisor"), with whom certain officers
and directors of the Fund are affiliated, provides investment advisory
services and shareholder recordkeeping and related services to the Fund. The
investment advisory fee, which is established by terms of the Advisory
Agreement, is based on an annualized rate of .50% of the average daily net
assets of the Fund. Advisory fees are subject to reimbursement by the
Advisor if the Fund's operating expenses exceed certain levels. Shareholder
recordkeeping and related service fees are based on contractually
established rates for each open and closed shareholder account. In addition,
the Advisor is compensated for certain other services related to costs
incurred for reports to shareholders.
The amount payable to the Advisor at April 30, 1997 and unaffiliated
directors' fees, excluding the effects of waivers and reimbursements, for
the six months then ended were $163,068 and $13,824, respectively.
4. CAPITAL CONTRIBUTION
On January 31, 1997, the Advisor purchased a security from the Fund for
$14,443,753 in excess of the security's fair value. The Fund recorded a
realized loss on the sale and a capital contribution of an equal amount from
the Advisor. The Advisor received no shares of the Fund or other
consideration in exchange for such contribution. For tax purposes, the
capital contribution reduced the realized losses for the six months ended
April 30, 1997.
5. ACQUISITION INFORMATION
Effective August 30, 1996, Strong Money Market Fund, Inc. acquired, through
a taxable merger, substantially all of the net assets of Strong U.S.
Treasury Money Fund, Inc., which amounted to $18,062,799, in exchange for an
equivalent number of shares. This amount is reflected in Proceeds from
Shares Sold in the Statement of Changes in Net Assets. The Statement of
Operations for the year ended October 31, 1996 does not include the
pre-acquisition activity for Strong U.S. Treasury Money Fund, Inc. There was
no tax effect on Strong Money Market Fund, Inc. as a result of this
transaction.
11
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
- ---------------------------------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(a)
----------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
---------------------------------- ------------------
<CAPTION>
Net Asset Net Total Capital Net Asset
Value, Net Realized From From Net Total Contrib- Value,
Beginning Investment Losses On Investment Investment Distri- utions End Of
Of Period Income Investments Operations Income butions (Note 4) Period
<S> <C> <C> <C> <C> <C> <C> <C> <C>
April 30, 1997(b) $1.00 $0.03 ($0.01) $0.02 ($0.03) ($0.03) $0.01 $1.00
Oct. 31, 1996 1.00 0.05 __ 0.05 (0.05) (0.05) __ 1.00
Oct. 31, 1995(c) 1.00 0.05 __ 0.05 (0.05) (0.05) __ 1.00
Dec. 31, 1994 1.00 0.04 __ 0.04 (0.04) (0.04) __ 1.00
Dec. 31, 1993 1.00 0.03 __ 0.03 (0.03) (0.03) __ 1.00
Dec. 31, 1992 1.00 0.04 __ 0.04 (0.04) (0.04) __ 1.00
</TABLE>
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA
---------------------------------------------------------------
Ratio Of
Net Expenses To Ratio Of Net
Assets, Ratio Of Average Net Investment
End Of Expenses Assets Without Income
Total Period (In To Average Waivers And To Average
Return(d) Millions) Net Assets Absorptions Net Assets
April 30, 1997(b) +2.6% $1,906 0.5%* 0.9%* 5.1%*
Oct. 31, 1996 +5.4% 1,949 0.4% 0.8% 5.3%
Oct. 31, 1995(c) +5.2% 1,934 0.0%* 0.7%* 6.1%*
Dec. 31, 1994 +4.0% 541 0.6% 0.9% 4.0%
Dec. 31, 1993 +2.9% 330 0.7% 1.0% 2.9%
Dec. 31, 1992 +3.7% 390 0.8% 1.1% 3.7%
* 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 April 30, 1997 (Unaudited). Total return is not
annualized.
(c) Total return is not annualized.
(d) Had the Advisor not made the capital contribution as described in the notes
to the financial statements, the adjusted total return would have been 1.8%
for the six months ended April 30, 1997.
12
<PAGE>
DIRECTORS
Richard S. Strong
John Dragisic
Willie D. Davis
Stanley Kritzik
Marvin E. Nevins
William F. Vogt
OFFICERS
Richard S. Strong, Chairman of the Board
John Dragisic, President
Lawrence A. Totsky, Vice President
Thomas P. Lemke, Vice President
John S. Weitzer, Vice President
Stephen J. Shenkenberg, Vice President and Secretary
John A. Flanagan, Treasurer
INVESTMENT ADVISOR
Strong Capital Management, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
DISTRIBUTOR
Strong Funds Distributors, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
CUSTODIAN
Firstar Trust Company
P.O. Box 701, Milwaukee, Wisconsin 53201
TRANSFER AGENT AND DIVIDEND-DISBURSING AGENT
Strong Capital Management, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
AUDITOR
Coopers & Lybrand L.L.P.
411 East Wisconsin Avenue, Milwaukee, Wisconsin 53202
LEGAL COUNSEL
Godfrey & Kahn, S.C.
780 North Water Street, Milwaukee, Wisconsin 53202
<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.strong-funds.com
[STRONG LOGO]
STRONG FUNDS
P.O. Box 2936 o Milwaukee, Wisconsin 53201
Strong Funds Distributors, Inc. 5211E97 97SMON
