Filed Pursuant to Rule 497(k)(1)(ii)
[PIE CHART]
FUND PROFILE
August 14, 1998
THE STRONG HERITAGE MONEY FUND
THE STRONG INVESTORS MONEY FUND
THE STRONG MONEY MARKET FUND
THE STRONG MUNICIPAL MONEY MARKET FUND
THE STRONG ADVANTAGE FUND
THE STRONG MUNICIPAL ADVANTAGE FUND
This profile summarizes key information about the Funds that is included in the
Funds' prospectus. The Funds' prospectus includes additional information about
the Funds, including a more detailed description of the risks associated with
investing in the Funds that you may want to consider before you invest. You may
obtain the prospectus and other information about the Funds at no cost by
calling 1-800-368-3863 or visiting our web site at www.strong-funds.com.
[STRONG LOGO]
STRONG FUNDS
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WHAT ARE THE FUNDS' GOALS?
The STRONG HERITAGE MONEY FUND, STRONG INVESTORS MONEY FUND, and STRONG MONEY
MARKET FUND, seek current income, a stable share price, and daily liquidity.
The STRONG MUNICIPAL MONEY MARKET FUND seeks federally tax-exempt current
income, a stable share price, and daily liquidity.
The STRONG ADVANTAGE FUND seeks current income with a very low degree of
share-price fluctuation.
The STRONG MUNICIPAL ADVANTAGE FUND seeks federally tax-exempt current income
with a very low degree of share-price fluctuation.
WHAT ARE THE FUNDS' PRINCIPAL INVESTMENT STRATEGIES?
The HERITAGE MONEY, MONEY MARKET, and INVESTORS MONEY FUNDS are managed to
provide attractive yields and a stable share price of $1.00. They invest in a
portfolio of high-quality, short-term debt securities issued by corporations,
banks, and other financial institutions. The MUNICIPAL MONEY MARKET FUND
follows a similar strategy, but invests primarily in municipal securities. The
managers may sell a holding if its fundamental qualities deteriorate, or to
take advantage of more attractive yield opportunities.
The ADVANTAGE FUND invests primarily in very short-term, high-quality bonds and
money market securities. To enhance its return potential, the Fund also invests
a portion of its assets in bonds that have longer maturities or are of lower
quality. To help limit changes in share price, the Fund's average maturity is
usually one year or less. The MUNICIPAL ADVANTAGE FUND follows a similar
investment strategy, but focuses on municipal securities, which generally
provide income free from federal income taxes. For both Funds, the managers may
sell a holding if its value becomes unattractive.
Additional information about each Fund's investments is available in annual and
semiannual reports to shareholders. Each Fund's reports discuss the market
conditions and investment strategies that significantly affected performance
during the past fiscal year. You may obtain these reports at no cost by calling
1-800-368-3863.
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WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUNDS?
FOR THE MONEY MARKET FUNDS:
NOT INSURED: Investments in the money market funds are not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The Funds' goal is to preserve the value of your investment at $1.00
per share. However, it is possible to lose money by investing in these Funds.
The money market funds are appropriate for investors' immediate cash needs or
as a permanent conservative part of a portfolio.
FOR THE BOND FUNDS:
BOND RISKS: The Funds' major risks are those of investing in the bond market.
The market value of a bond is affected by changes in interest rates-when
interest rates rise, the market value of a bond declines. Generally, the longer
a bond's maturity, the greater this risk. A bond's value can also be affected
by changes in the credit rating or financial condition of its issuer. Because
bond values fluctuate, when you sell your investment you may receive more or
less money than you originally invested.
HIGH-YIELD BONDS: The ADVANTAGE and MUNICIPAL ADVANTAGE FUNDS may invest a
limited portion of their assets in medium- and lower-quality, high-yield bonds.
These bonds involve greater risks, including the possibility that the issuer of
the bond may not be able to make its payments of interest and principal to the
Fund. If that happens, the Fund's share price would decrease and its income
distributions would be reduced.
FOREIGN SECURITIES: To a limited degree, the ADVANTAGE FUND may invest in
foreign securities. Foreign investments involve additional risks, including
currency fluctuations, political instability, differences in financial
reporting standards, and less stringent regulation of securities markets.
MORTGAGE AND ASSET-BACKED SECURITIES: The ADVANTAGE and MUNICIPAL ADVANTAGE
FUNDS invest significantly in mortgage-backed and asset-backed securities. The
main risk is that the borrower will prepay some or all of the principal owed to
the issuer. If that happens, the Fund may have to replace the security in an
unfavorable market, reducing the Fund's share price and its income
distributions.
SHARE PRICES MAY VARY: The share price of the ADVANTAGE and the MUNICIPAL
ADVANTAGE FUNDS will vary. These Funds are not appropriate investments for
those investors whose main concern is absolute stability of principal.
Continued..
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MAIN RISKS OF INVESTING IN THE FUNDS, CONTINUED..
The return information provided illustrates how the Funds' performance can
vary, which is one indication of the risks of investing in the Funds. Please
keep in mind that the Funds' past performance does not represent how they will
perform in the future. Only Funds with at least a full calendar year's returns
appear below.
CALENDAR YEAR TOTAL RETURNS
[BAR GRAPH]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Year Money Market Heritage Municipal Money Advantage Fund Municipal
Fund Money Fund Fund Advantage Fund
- ----- ------------- ------------ --------------- -------------- --------------
1988 7.5% - 5.2% - -
- ----- ------------- ------------ --------------- -------------- --------------
1989 9.2% - 6.1% 9.4% -
- ----- ------------- ------------ --------------- -------------- --------------
1990 8.1% - 6.1% 6.6% -
- ----- ------------- ------------ --------------- -------------- --------------
1991 6.1% - 5.2% 10.6% -
- ----- ------------- ------------ --------------- -------------- --------------
1992 3.7% - 3.4% 8.4% -
- ----- ------------- ------------ --------------- -------------- --------------
1993 2.9% - 2.5% 7.9% -
- ----- ------------- ------------ --------------- -------------- --------------
1994 4.0% - 2.9% 3.6% -
- ----- ------------- ------------ --------------- -------------- --------------
1995 6.2% - 4.1% 7.5% -
- ----- ------------- ------------ --------------- -------------- --------------
1996 5.3% 5.7% 3.6% 6.7% 4.9%
- ----- ------------- ------------ --------------- -------------- --------------
1997 5.3% 5.6% 3.6% 6.5% 5.1%
- ----- ------------- ------------ --------------- -------------- --------------
</TABLE>
THE FUNDS' YEAR-TO-DATE RETURNS THROUGH 6-30-98 WERE: MONEY MARKET, 2.6%;
HERITAGE, 2.7%; MUNICIPAL MONEY, 1.8%; ADVANTAGE, 3.1%; AND MUNICIPAL
ADVANTAGE, 2.2%.
BEST AND WORST QUARTERLY PERFORMANCE
<TABLE>
<CAPTION>
<S> <C> <C>
FUND NAME BEST QUARTER RETURN WORST QUARTER RETURN
- --------------------- --------------------- ---------------------
Heritage Money 1.5% (4th Q 1995) 1.3% (1st Q 1998)
- --------------------- --------------------- ---------------------
Money Market 2.4% (2nd Q 1989) 0.7% (2nd Q 1993)
- --------------------- --------------------- ---------------------
Municipal Money 1.6% (2nd Q 1989) 0.6% (1st Q 1994)
- --------------------- --------------------- ---------------------
Advantage 3.0% (1st Q 1989) 0.4% (2nd Q 1994)
- --------------------- --------------------- ---------------------
Municipal Advantage 1.7% (3rd Q 1996) 0.6% (1st Q 1996)
- --------------------- --------------------- ---------------------
</TABLE>
As of June 30, 1998, the ADVANTAGE FUND'S 30-day yield was 6.19%, and the
MUNICIPAL ADVANTAGE FUND yielded 4.02%. For investors in the 36% tax bracket,
the MUNICIPAL ADVANTAGE FUND'S taxable equivalent yield was 6.28%. (Without fee
waivers and absorptions, the MUNICIPAL ADVANTAGE FUND'S yields would have been
3.91% and 6.11%, respectively.) For current yield information on any of the
Funds, call 1-800-368-3863.
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AVERAGE ANNUAL TOTAL RETURNS
AS OF 6-30-98
FUND/INDEX 1-YEAR 5-YEAR 10-YEAR SINCE INCEPTION
HERITAGE MONEY 5.56% - - 5.72% (6-29-95)
Salomon Bros. 3-Month
Treasury Bill Index 5.25% - - 5.31%
MONEY MARKET 5.36% 4.99% 5.75% 5.93% (10-22-85)
Salomon Bros. 3-Month
Treasury Bill Index 5.25% 4.92% 5.57% 5.69%
MUNICIPAL MONEY 3.61% 3.44% 4.20% 4.26% (10-23-86)
Salomon Bros. 3-Month
Treasury Bill Index 5.25% 4.92% 5.57% 5.62%
ADVANTAGE 6.31% 6.17% - 7.42% (11-25-88)
Salomon Bros. 1-Year
Treasury Bill Index 5.95% 5.42% - 6.45%
MUNICIPAL ADVANTAGE 4.88% - - 5.06% (11-30-95)
Lehman Brothers Municipal
1-Year Bond Index 4.66% - - 4.48%
THE SALOMON BROTHERS 3-MONTH TREASURY BILL INDEX IS AN UNMANAGED INDEX
GENERALLY REPRESENTATIVE OF THE AVERAGE YIELD OF THREE MONTH TREASURY BILLS.
THE SALOMON BROTHERS 1-YEAR TREASURY BENCHMARK-ON-THE-RUN INDEX ("1-YEAR
TREASURY BILL") IS AN UNMANAGED INDEX GENERALLY REPRESENTATIVE OF THE AVERAGE
YIELD ON ONE-YEAR TREASURY BILLS. THE LEHMAN BROTHERS MUNICIPAL 1-YEAR BOND
INDEX IS AN UNMANAGED INDEX GENERALLY REPRESENTATIVE OF ONE-YEAR, TAX-EXEMPT
BONDS.
WHAT ARE THE FUNDS' FEES AND EXPENSES?
This section describes the fees and expenses that you may pay if you buy and
hold shares of the Funds.
SHAREHOLDER FEES (fees paid directly from your investment)
The Funds are 100% no-load, so you pay no fees to buy or sell shares. The
HERITAGE MONEY FUND charges a fee of $3 for each redemption,
exchange, and check written against your account. The Fund also charges a $3
quarterly account maintenance fee if your balance is less than $25,000. These
fees will not be deducted if your total assets in Strong Funds equal $100,000
or more.
ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund assets)
The costs of operating each Fund are deducted from Fund assets, which means you
pay them indirectly. These costs are deducted before computing the daily share
price or making distributions. As a result, they don't appear on your account
statement, but instead reduce the amount of total return you receive.
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ANNUAL FUND OPERATING EXPENSES (AS A PERCENT OF AVERAGE NET ASSETS)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
FUND MANAGEMENT FEES OTHER EXPENSES TOTAL EXPENSES
- -------------------- ---------------- ---------------- ----------------
Heritage Money 0.50% 0.07% 0.57%*
- -------------------- ---------------- ---------------- ----------------
Investors Money 0.50% 1.50% 2.00%*
- -------------------- ---------------- ---------------- ----------------
Money Market 0.50% 0.37% 0.87%*
- -------------------- ---------------- ---------------- ----------------
Municipal Money 0.50% 0.10% 0.60%
- -------------------- ---------------- ---------------- ----------------
Advantage 0.60% 0.17% 0.77%
- -------------------- ---------------- ---------------- ----------------
Municipal Advantage 0.60% 0.07% 0.67%*
- -------------------- ---------------- ---------------- ----------------
</TABLE>
*TOTAL OPERATING EXPENSES DO NOT REFLECT THE INVESTMENT ADVISOR'S WAIVER OF
MANAGEMENT FEES AND/OR ABSORPTIONS. WITH SUCH WAIVERS AND/OR ABSORPTIONS, THE
TOTAL OPERATING EXPENSES OF THESE FUNDS WERE AS FOLLOWS: HERITAGE MONEY, 0.25%;
INVESTORS MONEY, 0.00%; MONEY MARKET, 0.48%; AND MUNICIPAL ADVANTAGE, 0.45%.
THESE WAIVERS AND ABSORPTIONS CAN BE TERMINATED AT ANY TIME.
THE INVESTMENT ADVISOR HAS AGREED TO WAIVE ITS MANAGEMENT FEE AND ABSORB
EXPENSES TO KEEP THE HERITAGE MONEY FUND'S TOTAL OPERATING EXPENSES AT 0.45% OR
LESS UNTIL JANUARY 1, 1999. THE INVESTMENT ADVISOR HAS AGREED TO WAIVE ITS
ENTIRE MANAGEMENT FEE AND ABSORB ALL EXPENSES OF THE INVESTORS MONEY FUND UNTIL
JANUARY 1, 1999.
EXAMPLE: This example is intended to help you compare the cost of investing in
the Funds with the cost of investing in other mutual funds. The example assumes
that you invest $10,000 in the Funds for the time periods indicated, and then
redeem all of your shares at the end of those periods. The example also assumes
that your investment has a 5% return each year and that the Funds' operating
expenses remain the same. Although your actual costs may be higher or lower,
based on these assumptions your costs would be:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -------------------- --------- --------- --------- ---------
Heritage Money $58 $183 $318 $714
- -------------------- --------- --------- --------- ---------
Investors Money $209 $646 $1,108 $2,390
- -------------------- --------- --------- --------- ---------
Money Market $89 $278 $482 $1,073
- -------------------- --------- --------- --------- ---------
Municipal Money $61 $192 $335 $750
- -------------------- --------- --------- --------- ---------
Advantage $79 $246 $428 $954
- -------------------- --------- --------- --------- ---------
Municipal Advantage $68 $214 $373 $835
- -------------------- --------- --------- --------- ---------
</TABLE>
WHO ARE THE FUNDS' INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
Strong Capital Management serves as the investment advisor for the Funds.
Jay N. Mueller manages the HERITAGE MONEY, INVESTORS MONEY, and MONEY MARKET
FUNDS. He joined Strong as a portfolio manager in September 1991, and has 15
years of investment experience.
Steven D. Harrop manages the MUNICIPAL MONEY MARKET and MUNICIPAL ADVANTAGE
FUNDS. He joined Strong as a portfolio manager in March 1991, and has 23 years
of investment experience.
Jeffrey A. Koch co-manages the ADVANTAGE FUND. He joined Strong as a
fixed-income analyst in June 1989, and has nine years of investment experience.
He has managed or co-managed the ADVANTAGE FUND since July 1991. Lyle J.
Fitterer has co-managed the ADVANTAGE FUND since March 1997. He joined Strong
in May 1989, and has six years of investment experience. He previously worked
at Strong as manager of the fixed income fund accounting department.
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HOW CAN I BUY FUND SHARES?
There are several ways you can open a new account in the Funds.
BY MAIL: Complete and sign the application. Make your check or money order
payable to Strong Funds. Mail it to Strong Funds, P.O. Box 2936, Milwaukee, WI
53201.
- - BY PHONE OR BY INTERNET: If you are a current Strong Funds shareholder and
choose exchange privileges, you can exchange shares from one Strong account
to open another.
You can also open an account in person or through a broker-dealer.
The minimum initial investment for a regular account is $2,500 for the MONEY
MARKET, MUNICIPAL MONEY, ADVANTAGE, and MUNICIPAL ADVANTAGE FUNDS, and $1,000
for the INVESTORS MONEY FUND. For these Funds, there is a minimum $500
investment for an Education IRA, and $250 for an IRA or transfer or gift to
minor account. (For minimums on other retirement plans, call 1-800-368-2882.)
If you establish an Automatic Investment Plan (not available for Education
IRAs) of $50 or more per month, these minimums are waived. In all cases, the
minimum for subsequent investments is $50. Please note that you may not open
IRAs or Education IRAs in the municipal funds.
For the HERITAGE MONEY FUND, the minimum initial investment into any account is
$25,000, and the minimum for subsequent investments is $1,000. These minimums
are not waived for Automatic Investment Plans.
Investments in the INVESTORS MONEY FUND are limited to $20,000 per account,
with a limit of two accounts (one regular and one IRA) per person. Only
individuals may invest in the Fund.
HOW CAN I SELL FUND SHARES?
There are several ways you can sell (redeem) your Fund shares.
- - BY MAIL: You can write a letter of instruction, including your account
number, the dollar amount or number of shares you wish to redeem, each
owner's name, your street address, and the signature of each owner. Mail it
to Strong Funds, P.O. Box 2936, Milwaukee, WI 53201.
- - BY PHONE OR BY INTERNET: If you choose redemption privileges, you can sell
shares by phone or through our web site.
You can also redeem shares in person, through a systematic withdrawal plan, or
through a broker-dealer.
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DO THE FUNDS PAY OUT DIVIDENDS OR CAPITAL GAINS? HOW ARE THEY TAXED?
The Funds may pay income from interest on the bonds in their portfolios. In
addition, the ADVANTAGE and MUNICIPAL ADVANTAGE FUNDS may earn capital gains
from appreciation on their holdings. The Funds declare income daily and
distribute it monthly, and declare and distribute capital gains annually.
Income will provide the entire return of the money market funds.
Unless you elect otherwise, distributions of income and capital gains will be
automatically reinvested in the Fund that paid them. These distributions are
taxable regardless of whether you reinvest them or take them in cash.
Income is taxable at ordinary federal income tax rates. The income from the
MUNICIPAL MONEY and MUNICIPAL ADVANTAGE FUNDS is generally exempt from federal
income taxes, but may be subject to state tax. In addition, investors who are
subject to the Alternative Minimum Tax (AMT) may have to pay tax on a portion
of their income from these Funds.
Capital-gains distributions are taxed at rates based on how long the assets
were held by the Fund. After the end of each calendar year, Strong sends
shareholders a statement of the Funds' income and capital-gains distributions
to assist in tax preparation.
WHAT SERVICES DOES STRONG FUNDS PROVIDE?
Strong offers you a variety of ways to get information, monitor your
investments, and buy and sell shares.
- - Personal service 24 hours a day, 7 days a week
- - Automated telephone service
- - Online transaction services
- - Automatic investment plans
- - Payroll direct deposit
- - Retirement plans for individuals and corporations
Strong representatives can tell you more about each of these services, and can
also give you further information about buying and selling shares. Just call
1-800-368-3863 anytime, day or night.
- --------------------------------------------------------------------------------
[STRONG LOGO]
Strong Funds
P.O. Box 2936, Milwaukee, Wisconsin 53201
Strong Funds Distributors, Inc. 7872E98 CA798P
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