<PAGE>
THE STRONG
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MONEY MARKET FUND
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SEMI-ANNUAL REPORT o APRIL 30,1998
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[PHOTO OF STRONG FUNDS HEADQUARTERS]
[STRONG LOGO]
STRONG FUNDS
<PAGE>
8
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.
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[PICTURE OF FOLDER LABELED INVESTMENTS]
1. HAVE A PLAN. Even a simple plan can help you take control of your financial
future. Review your plan once a year, or if your circumstances change.
- -------------------------------------------------------------------------------
[PICTURE OF CLOCK]
2. START INVESTING AS SOON AS POSSIBLE. Make time a valuable ally. Let it put
the power of compounding to work for you, while helping to reduce your
potential investment risk.
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[PICTURE OF PIE CHART OF ASSET DIVERSIFICATION]
3. DIVERSIFY YOUR PORTFOLIO. By investing in different asset classes - stocks,
bonds, and cash - you help protect against poor performance in one type of
investment while including investments most likely to help you achieve your
important goals.
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[PICTURE OF MEMO REMINDER TO INVEST]
4. INVEST REGULARLY. 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.
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[PICTURE OF GRAPH SLOPING UPWARD]
5. MAINTAIN A LONG-TERM PERSPECTIVE. For most individuals, the best discipline
is staying invested as market conditions change. Reactive, emotional investment
decisions are all too often a source of regret - and of principal loss.
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[PICTURE OF PIE CHART OF ASSET DIVERSIFICATION EMPHASIZING STOCKS]
6. CONSIDER STOCKS TO HELP ACHIEVE MAJOR LONG-TERM GOALS. Over time, stocks
have provided the more powerful returns needed to help the value of your
investments stay well ahead of inflation.
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[PICTURE OF DOLLAR SIGN]
7. KEEP A COMFORTABLE AMOUNT OF CASH IN YOUR PORTFOLIO. To meet current needs,
including emergencies, use a money market fund or a bank account - not your
long-term investment assets.
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[PICTURE OF MAGNIFYING GLASS]
8. KNOW WHAT YOU'RE BUYING. Make sure you understand the potential risks and
rewards associated with each of your investments. Ask questions...request
information...make up your own mind. And choose a fund company that helps you
make informed investment decisions.
<PAGE>
THE STRONG
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MONEY MARKET FUND
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SEMI-ANNUAL REPORT o APRIL 30, 1998
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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
Statements of Changes in Net Assets.....................................10
Notes to Financial Statements...........................................11
FINANCIAL HIGHLIGHTS.........................................................12
<PAGE>
==============================
THE STRONG MONEY MARKET FUND
==============================
IN THE PAST SIX MONTHS, THE U.S. ECONOMY CONTINUED ITS REMARKABLY POSITIVE
PERFORMANCE OF RECENT YEARS.
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)
PERFORMANCE
The Strong Money Market Fund has been among the top performing money market
funds in America since inception in 1985. Lipper Analytical Services, Inc.
ranked the Strong Money Market Fund among the top 11% of all money market funds
for the 1-year period ended April 30, 1998, and among the top 4% for the 5- and
10-year periods, based on total return for the same period.(2)
In the six-month period ended April 30, 1998, the Fund earned a total return of
2.61%. For the trailing twelve-month period ended April 30, 1998, the Fund
earned a total return of 5.38%. Our performance is attributable to
opportunistic management of the portfolio's maturity structure; careful issue
selection enabled us to add significant value versus our benchmark while
maintaining high credit quality. Shareholders also benefited from the Fund's
lower than industry average expense ratio.
RECENT MACRO-ECONOMIC CONDITIONS
In the past six months, the U.S. economy continued its remarkably positive
performance of recent years. Gross Domestic Product growth has averaged around
4% on an annualized basis, while job growth has been robust and the
unemployment rate has remained below 5%. These are conditions which have in the
past been associated with a tendency toward higher inflation, and in turn often
prompted a more restrictive monetary policy from the Federal Reserve. Indeed,
the job of the monetary authorities has been jokingly described as 'taking away
the punch bowl just when the party gets going!'
The last half year has been exceptional, however, in that inflation has
remained subdued and has in fact fallen to new cyclical and secular lows.
Without the unwanted presence of inflation at the banquet, Alan Greenspan and
his fellow Federal Open Market Committee members have had little reason to
'take away the punchbowl' by raising short term rates. By the same token,
solid U.S. growth has diminished the need for a relaxed monetary policy,
permitting the Federal Reserve to refrain from tinkering with liquidity
conditions. It is difficult to predict how much longer this 'Goldilocks'
economy can last. Fears of a slowdown in world growth rates caused by the
financial troubles in Southeast Asia triggered an abrupt drop in intermediate-
to longer-term interest rates in the fall and into early January of 1998. While
the conditions in Asia have certainly contributed to lower inflation in the
rest of the world, there is minimal evidence at this time of a significant drag
on U.S. growth. Expectations that the Federal Reserve might have to ease to
prevent an Asia-induced recession have all but vanished as of this writing.
=============================================================
LIPPER TOTAL
RETURN RANKINGS(2)
=============================================================
As of 4-30-98
Rank Among
Time Period Percentage Money Market Funds
1-YEAR TOP 11% #33 OF 303
5-YEAR TOP 4% #7 OF 188
10-YEAR TOP 4% #5 OF 115
SINCE INCEPTION TOP 3% #3 OF 96
Category: Money Market Funds. Rankings and performance
are historical and do not represent future performance.
Source of Lipper rankings is Lipper Analytical Services, Inc.
=============================================================
OUTLOOK
There are many factors behind the recent benign economic conditions in the
U.S., including the efficiencies gained by the implementation of high
technology, effective monetary policy and favorable demographics as the
'baby-boom' generation hits its peak years of economic output. Sustained growth
has also allowed a dramatic improvement in the fiscal condition of the federal
government. We believe it is highly likely that the United States will
experience a net surplus this fiscal year as tax revenues continue to pour into
the Treasury faster than spending rises.
2
<PAGE>
In view of the foregoing, we believe that monetary policy will remain on hold
in the near future and possibly for many months to come. A low level of
volatility in short-term interest rates is thus our expected case scenario.
Accordingly, our current portfolio strategies are likely to remain in place
for the near term while issue selection and opportunistic changes in yield
curve exposure will be the primary sources of incremental return.
We remain dedicated to managing your Fund to provide stability of principal
and an attractive yield in order to help you meet your investment goals.
[PHOTO OF JAY N. MUELLER]
Cordially,
/s/ Jay N. Mueller
Jay N. Mueller
Portfolio Manager
===========================================
3-MONTH T-BILL YIELDS THROUGH APRIL 1998
===========================================
[GRAPH]
4-97 5.23%
5-97 4.94%
6-97 5.17%
7-97 5.23%
8-97 5.22%
9-97 5.10%
10-97 5.20%
11-97 5.20%
12-97 5.35%
1-98 5.18%
2-98 5.31%
3-98 5.12%
4-98 4.97%
Source: Bloomberg
========================================
====================================
YIELD SUMMARY (3)
====================================
As of 4-30-98
7-DAY CURRENT YIELD 5.19%
7-DAY EFFECTIVE YIELD 5.33%
AVERAGE MATURITY 57 DAYS
====================================
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 and without these
waivers the rankings may have been lower.
3 Yields are annualized for the 7-day period ended April 30, 1998. 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 0.33% during
the 7-day period ended 4-30-98. Otherwise, the Fund's current yield would
have been 4.84%, and its effective yield would have been 4.96%.
3
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS IN SECURITIES APRIL 30, 1998 UNAUDITED)
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<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (a) Cost
Security (Note 2)
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<S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSIT 1.0%
Deutsche Bank AG New York , 5.66% $19,750,000 5.77% 4/14/99 $19,730,160
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TOTAL CERTIFICATES OF DEPOSIT 19,730,160
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COMMERCIAL PAPER 87.3%
Abbey National North America Corporation 26,900,000 5.50 10/27/98 26,164,360
Alpine Securitization Corporation:
(Acquired 2/06/98; Cost $16,015,929) (b) 16,429,000 5.42 7/23/98 16,223,701
(Acquired 4/16/98; Cost $5,207,891) (b) 5,270,000 5.51 7/02/98 5,219,991
American Home Products Corporation 1,000,000 5.48 7/10/98 989,345
26,713,000 5.48 7/14/98 26,412,093
American Honda Finance Corporation 3,575,000 5.53 7/23/98 3,529,420
15,450,000 5.55 6/10/98 15,354,725
Anaheim, California Electric System 9,235,000 5.65 6/01/98 9,235,000
Aon Corporation 5,000,000 5.54 6/02/98 4,975,378
2,400,000 5.54 6/05/98 2,387,073
2,200,000 5.55 5/18/98 2,194,234
7,000,000 5.56 5/07/98 6,993,513
4,550,000 5.56 5/19/98 4,537,351
2,000,000 5.56 6/05/98 1,989,189
Aristar, Inc. 5,000,000 5.57 6/17/98 4,963,640
5,084,000 5.58 5/05/98 5,080,847
Ascot Capital Corporation:
(Acquired 2/04/98; Cost $4,929,475) (b) 5,000,000 5.46 5/08/98 4,994,692
(Acquired 4/08/98; Cost $986,275) (b) 1,000,000 5.49 7/07/98 989,782
(Acquired 3/20/98; Cost $4,561,406) (b) 4,625,000 5.50 6/18/98 4,591,083
(Acquired 3/27/98; Cost $14,795,671) (b) 15,000,000 5.51 6/24/98 14,876,025
Atlas Copco AB:
(Acquired 2/23/98; Cost $3,612,434) (b) 3,650,000 5.53 5/01/98 3,650,000
(Acquired 2/25/98; Cost $3,957,603) (b) 4,000,000 5.53 5/05/98 3,997,542
(Acquired 4/21/98; Cost $4,466,401) (b) 4,525,000 5.55 7/14/98 4,473,377
(Acquired 4/16/98; Cost $6,157,500) (b) 6,250,000 5.55 7/21/98 6,171,953
(Acquired 4/03/98; Cost $3,941,311) (b) 4,000,000 5.56 7/07/98 3,958,609
Avon Capital Corporation (Acquired 4/15/98;
Cost $2,989,788) (b) 3,000,000 5.57 5/07/98 2,997,215
Barton Capital Corporation:
(Acquired 4/13/98; Cost $21,415,923) (b) 21,700,000 5.48 7/08/98 21,475,381
(Acquired 3/03/98; Cost $750,910) (b) 761,000 5.55 5/28/98 757,832
Beta Finance, Inc. (Acquired 4/16/98;
Cost $4,862,236) (b) 5,000,000 5.45 10/15/98 4,873,590
Brazos River Authority Texas Pollution
Control Revenue 10,895,000 5.55 5/13/98 10,895,000
15,000,000 5.58 7/13/98 15,000,000
British Gas Capital, Inc. 18,425,000 5.38 8/20/98 18,119,360
9,000,000 5.45 6/29/98 8,919,612
Budget Funding Corporation 14,855,000 5.52 6/10/98 14,763,889
CSC Enterprises 3,400,000 5.50 7/13/98 3,362,081
18,500,000 5.54 5/18/98 18,451,602
Calcasieu Parish, Inc. Louisiana
Industrial Development
Board Environmental Revenue 17,375,000 5.54 6/12/98 17,375,000
Calcot, Ltd. 5,000,000 5.65 6/05/98 4,972,535
2,000,000 5.68 6/09/98 1,987,693
700,000 5.70 6/03/98 696,342
California Pollution Control Financing
Authority Environmental Improvement Revenue:
(Acquired 3/04/98; Cost $15,825,000) (b) 15,825,000 5.55 7/15/98 15,825,000
(Acquired 3/11/98; Cost $6,000,000) (b) 6,000,000 5.57 6/04/98 6,000,000
Centre Square Funding Corporation:
(Acquired 4/16/98; Cost $10,652,248) (b) 10,700,000 5.54 5/15/98 10,676,947
(Acquired 4/27/98; Cost $8,760,657) (b) 8,800,000 5.55 5/26/98 8,766,083
(Acquired 4/03/98; Cost $4,480,540) (b) 4,500,000 5.56 5/01/98 4,500,000
Centric Capital Corporation:
(Acquired 4/06/98; Cost $5,133,145) (b) 5,200,000 5.51 6/29/98 5,153,043
(Acquired 4/06/98; Cost $4,440,767) (b) 4,500,000 5.51 7/01/98 4,457,986
(Acquired 4/28/98; Cost $7,204,512) (b) 7,300,000 5.54 7/22/98 7,207,882
(Acquired 4/03/98; Cost $4,978,417) (b) 5,000,000 5.55 5/01/98 5,000,000
Certain Funding Corporation:
(Acquired 2/11/98; Cost $1,972,904) (b) 2,000,000 5.48 5/11/98 1,996,956
(Acquired 2/05/98; Cost $9,870,139) (b) 10,000,000 5.50 5/01/98 10,000,000
(Acquired 4/23/98; Cost $5,916,432) (b) 6,000,000 5.51 7/23/98 5,923,778
(Acquired 3/24/98; Cost $4,124,780) (b) 4,180,000 5.53 6/18/98 4,149,179
4
<PAGE>
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Principal Yield to Maturity Amortized
Amount Maturity Date (a) Cost
Security (Note 2)
- ------------------------------------------------------------------------------------------------------------
CIGNA Corporation $12,000,000 5.46% 5/06/98 $11,990,900
10,000,000 5.47 5/05/98 9,993,922
Cooperative Association Tractor Dealers, Inc.:
Series A 3,000,000 5.52 6/09/98 2,982,060
2,300,000 5.52 7/23/98 2,270,729
Series B 4,800,000 5.51 7/24/98 4,738,288
1,000,000 5.52 7/02/98 990,493
1,670,000 5.52 7/20/98 1,649,515
Countrywide Funding Corporation 9,975,000 5.54 5/26/98 9,936,624
Den Norske Bank 16,650,000 5.49 6/08/98 16,553,513
Duke Capital Corporation:
(Acquired 4/07/98; Cost $11,375,941) (b) 11,550,000 5.48 7/15/98 11,418,138
(Acquired 2/24/98; Cost $2,963,792) (b) 3,000,000 5.50 5/14/98 2,994,042
(Acquired 2/20/98; Cost $6,910,167) (b) 7,000,000 5.50 5/15/98 6,985,028
(Acquired 3/03/98; Cost $3,947,772) (b) 4,000,000 5.53 5/27/98 3,984,024
Enterprise Funding Corporation:
(Acquired 4/15/98; Cost $4,902,875) (b) 4,972,000 5.50 7/15/98 4,915,029
(Acquired 3/30/98; Cost $6,887,300) (b) 7,000,000 5.52 7/13/98 6,921,647
(Acquired 4/30/98; Cost $10,430,519) (b) 10,500,000 5.54 6/12/98 10,432,135
Fina Oil & Chemical Company
(Acquired 4/13/98; Cost $7,197,021) (b) 7,300,000 5.52 7/14/98 7,217,169
Finova Capital Corporation 6,000,000 5.52 6/26/98 5,948,480
8,700,000 5.53 5/04/98 8,695,991
6,950,000 5.53 6/23/98 6,893,417
Ford Motor Credit Company 20,000,000 5.44 5/06/98 19,984,889
3,000,000 5.45 5/08/98 2,996,821
Fountain Square Commercial Corporation
(Acquired 2/11/98; Cost $5,143,902) (b) 5,288,000 5.45 8/10/98 5,207,145
Franklin Resources, Inc.:
(Acquired 2/05/98; Cost $3,452,313) (b) 3,500,000 5.45 5/06/98 3,497,351
(Acquired 2/03/98; Cost $7,887,367) (b) 8,000,000 5.45 5/07/98 7,992,733
(Acquired 4/14/98; Cost $4,689,767) (b) 4,750,000 5.50 7/06/98 4,702,104
(Acquired 3/20/98; Cost $9,194,339) (b) 9,330,000 5.51 6/23/98 9,254,316
Frigate Funding Corporation
(Acquired 4/23/98; Cost $8,147,096) (b) 8,200,000 5.53 6/04/98 8,157,173
GTE Corporation 9,365,000 5.72 5/05/98 9,359,048
General Electric Capital Corporation 24,350,000 5.49 6/05/98 24,220,032
General Motors Acceptance Corporation 5,000,000 5.43 8/04/98 4,928,354
Goldman Sachs Group LP 3,120,000 5.51 6/11/98 3,100,421
16,880,000 5.51 6/12/98 16,771,490
Greenwich Funding Corporation:
(Acquired 3/26/98 - 4/14/98; Cost $8,642,131) (b) 9,000,000 5.45 12/18/98 8,685,134
(Acquired 4/16/98; Cost $12,896,205) (b) 13,076,000 5.50 7/15/98 12,926,171
Guardian Industries Corporation 12,000,000 5.53 5/15/98 11,974,193
Gulf Coast Waste Disposal
Authority Pollution Control Revenue 7,300,000 5.55 5/12/98 7,300,000
Halifax PLC 13,200,000 5.49 7/02/98 13,075,194
11,800,000 5.60 5/12/98 11,779,809
Harley-Davidson Funding Corporation:
(Acquired 2/02/98; Cost $4,930,739) (b) 5,000,000 5.48 5/04/98 4,997,717
(Acquired 2/10/98; Cost $3,944,900) (b) 4,000,000 5.51 5/11/98 3,993,878
(Acquired 4/17/98; Cost $6,242,040) (b) 6,300,000 5.52 6/16/98 6,255,564
Harris County, Texas Industrial Development
Corporation Solid Waste Disposal Revenue:
(Acquired 2/10/98; Cost $5,000,000) (b) 5,000,000 5.57 5/11/98 5,000,000
(Acquired 2/09/98; Cost $8,000,000) (b) 8,000,000 5.57 5/12/98 8,000,000
(Acquired 3/10/98; Cost $3,500,000) (b) 3,500,000 5.62 7/15/98 3,500,000
(Acquired 4/01/98; Cost $6,100,000) (b) 6,100,000 5.62 7/31/98 6,100,000
Heller Financial, Inc. 2,650,000 5.82 5/20/98 2,641,860
Household International, Inc.:
(Acquired 3/02/98; Cost $17,339,898) (b) 17,540,000 5.55 5/15/98 17,502,143
(Acquired 3/30/98; Cost $6,638,619) (b) 6,700,000 5.59 5/28/98 6,671,910
ING America Insurance Holdings, Inc. 13,000,000 5.43 7/06/98 12,870,585
International Securitization Corporation
(Acquired 3/19/98; Cost $23,590,080) (b) 24,000,000 5.49 7/09/98 23,747,460
Jefferson Smurfit Finance Corporation 3,300,000 5.47 5/12/98 3,294,484
6,600,000 5.50 5/05/98 6,595,967
3,000,000 5.50 5/15/98 2,993,583
1,150,000 5.53 6/09/98 1,143,111
5,000,000 5.54 6/02/98 4,975,378
Johnson Controls, Inc. 100 5.26 Upon Demand 100
5
<PAGE>
SCHEDULE OF INVESTMENTS IN SECURITIES (CONTINUED) APRIL 30, 1998 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (a) Cost
Security (Note 2)
- ------------------------------------------------------------------------------------------------------------
KZH Holding Corporation III:
(Acquired 2/10/98; Cost $5,494,407) (b) $ 5,639,000 5.43% 7/30/98 $ 5,562,451
(Acquired 3/10/98; Cost $8,733,163) (b) 8,888,000 5.55 7/01/98 8,804,416
(Acquired 4/21/98; Cost $3,891,860) (b) 3,938,000 5.55 7/06/98 3,897,931
(Acquired 4/21/98; Cost $1,267,572) (b) 1,283,000 5.55 7/08/98 1,269,550
KZH-ING-1 Corporation:
(Acquired 2/13/98; Cost $2,960,125) (b) 3,000,000 5.50 5/11/98 2,995,417
(Acquired 4/14/98; Cost $1,209,353) (b) 1,225,000 5.54 7/06/98 1,212,558
(Acquired 4/21/98; Cost $1,773,098) (b) 1,793,000 5.55 7/02/98 1,775,862
KZH-Soleil Corporation:
(Acquired 2/27/98; Cost $8,070,722) (b) 8,183,000 5.55 5/27/98 8,150,200
(Acquired 2/27/98; Cost $2,268,088) (b) 2,300,000 5.55 5/28/98 2,290,426
(Acquired 4/17/98; Cost $25,760) (b) 26,000 5.55 6/16/98 25,816
(Acquired 4/21/98; Cost $3,035,093) (b) 3,062,000 5.55 6/17/98 3,039,813
Kitty Hawk Funding Corporation:
(Acquired 4/23/98; Cost $2,935,714) (b) 3,009,000 5.48 9/30/98 2,939,378
(Acquired 3/26/98; Cost $9,959,952) (b) 10,184,000 5.50 8/17/98 10,015,964
(Acquired 4/02/98; Cost $9,152,989) (b) 9,400,000 5.50 9/21/98 9,194,636
Lexington Parker Capital Corporation:
(Acquired 2/03/98; Cost $8,238,795) (b) 8,400,000 5.44 6/10/98 8,349,227
(Acquired 3/11/98; Cost $1,392,055) (b) 1,410,000 5.52 6/02/98 1,403,082
(Acquired 4/24/98; Cost $12,818,607) (b) 13,000,000 5.52 7/24/98 12,832,560
LOCAP, Inc. (Acquired 4/29/98; Cost $4,902,783) (b) 4,925,000 5.60 5/28/98 4,904,315
Market Street Funding Corporation:
(Acquired 3/12/98; $2,961,820) (b) 3,000,000 5.52 6/03/98 2,984,820
(Acquired 3/19/98; $19,167,556) (b) 19,400,000 5.53 6/05/98 19,295,698
(Acquired 4/07/98; $6,242,800) (b) 6,300,000 5.54 6/05/98 6,266,067
Marshall & Ilsley Corporation 5,000,000 5.55 5/07/98 4,995,375
5,000,000 5.55 5/08/98 4,994,604
9,500,000 5.55 5/27/98 9,461,921
Martin Marietta Materials, Inc.:
(Acquired 3/24/98; Cost $7,938,222) (b) 8,000,000 5.56 5/13/98 7,985,173
(Acquired 4/23/98; Cost $1,991,969) (b) 2,000,000 5.56 5/19/98 1,994,440
(Acquired 4/09/98; Cost $2,484,141) (b) 2,500,000 5.57 5/20/98 2,492,651
(Acquired 4/14/98; Cost $6,363,296) (b) 6,400,000 5.58 5/21/98 6,380,160
(Acquired 4/15/98; Cost $3,977,680) (b) 4,000,000 5.58 5/21/98 3,987,600
Merrill Lynch & Company, Inc. 8,775,000 5.37 8/14/98 8,637,562
8,000,000 5.46 9/11/98 7,838,627
6,925,000 5.53 5/08/98 6,917,554
Minolta Corporation 5,100,000 5.56 6/09/98 5,069,281
Monsanto Company:
(Acquired 2/02/98; Cost $7,835,296) (b) 8,000,000 5.41 6/19/98 7,941,091
(Acquired 2/25/98; Cost $5,107,931) (b) 5,225,000 5.45 7/23/98 5,159,346
(Acquired 3/16/98; Cost $1,960,567) (b) 2,000,000 5.46 7/24/98 1,974,520
Morgan Stanley, Dean Witter & Company 20,000,000 5.45 8/26/98 19,645,750
National Australia Funding, Inc. 25,900,000 5.66 6/01/98 25,773,766
National Fuel Gas Company 10,000,000 5.55 5/22/98 9,967,625
7,600,000 5.57 6/16/98 7,545,909
New York Life Capital Corporation 2,000,000 5.50 6/04/98 1,989,611
1,000,000 5.50 6/12/98 993,583
19,735,000 5.51 6/05/98 19,629,281
500,000 5.52 10/09/98 487,657
Newell Company (Acquired 3/27/98; Cost $9,945,750) (b) 10,000,000 5.58 5/01/98 10,000,000
Nordbanken North America, Inc. 14,000,000 5.37 8/25/98 13,757,753
8,500,000 5.40 8/27/98 8,349,550
Oakland-Alameda County, California Coliseum Authority 15,000,000 5.57 5/15/98 15,000,000
10,000,000 5.55 5/12/98 10,000,000
Oklahoma State Industrial Finance Authority 3,100,000 5.60 5/01/98 3,100,000
10,000,000 5.69 8/01/98 10,000,000
Old Line Funding Corporation:
(Acquired 4/22/98; Cost $1,549,677) (b) 1,560,000 5.54 6/04/98 1,551,837
(Acquired 4/28/98; Cost $1,117,209) (b) 1,125,000 5.54 6/12/98 1,117,729
(Acquired 4/22/98; Cost $1,139,841) (b) 1,151,000 5.54 6/24/98 1,141,435
(Acquired 4/03/98; Cost $2,987,050) (b) 3,000,000 5.55 5/01/98 3,000,000
6
<PAGE>
- ----------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (a) Cost
Security (Note 2)
- ----------------------------------------------------------------------------------------------------------
Peacock Funding Corporation:
(Acquired 4/09/98; Cost $7,841,400) (b) $ 8,000,000 5.49% 8/17/98 $ 7,868,240
(Acquired 4/07/98; Cost $6,513,283) (b) 6,600,000 5.50 7/02/98 6,537,483
(Acquired 4/13/98; Cost $2,374,240) (b) 2,400,000 5.52 6/22/98 2,380,864
(Acquired 3/19/98; Cost $5,941,620) (b) 6,000,000 5.56 5/21/98 5,981,467
Reliastar Mortgage Corporation 6,425,000 5.52 6/09/98 6,386,579
Repeat Offering Securitization Entity, Inc.:
(Acquired 4/28/98; Cost $14,169,930) (b) 14,300,000 5.55 6/26/98 14,176,543
(Acquired 4/27/98; Cost $985,971) (b) 1,000,000 5.55 7/27/98 986,587
(Acquired 4/30/98; Cost $6,115,424) (b) 6,200,000 5.55 7/28/98 6,115,887
SAFECO Corporation:
(Acquired 2/24/98; Cost $3,858,888) (b) 3,900,000 5.50 5/04/98 3,898,213
(Acquired 4/21/98; Cost $11,129,778) (b) 11,275,000 5.52 7/14/98 11,147,066
SAFECO Credit Corporation:
3,500,000 5.54 6/24/98 3,470,915
2,525,000 5.54 7/21/98 2,493,526
1,250,000 5.57 6/12/98 1,241,877
Salomon Smith Barney Holdings, Inc. 22,900,000 5.47 5/05/98 22,886,082
Sherwin-Williams Company:
(Acquired 3/06/98; Cost $6,409,796) (b) 6,500,000 5.49 6/05/98 6,465,306
(Acquired 3/06/98; Cost $2,972,500) (b) 3,000,000 5.50 5/05/98 2,998,167
Sigma Finance, Inc
(Acquired 1/08/98; Cost $1,944,592) (b) 2,000,000 5.45 7/10/98 1,978,806
(Acquired 2/04/98; Cost $4,339,940) (b) 4,400,000 5.46 5/05/98 4,397,331
(Acquired 4/07/98; Cost $4,530,678) (b) 4,600,000 5.48 7/15/98 4,547,483
(Acquired 3/05/98; Cost $11,366,817) (b) 11,550,000 5.49 6/17/98 11,467,215
Society of New York Hospital Fund, Inc. 5,000,000 5.48 7/17/98 4,941,395
4,000,000 5.52 8/13/98 3,936,213
Spintab-Swedmortgage AB 7,000,000 5.45 6/09/98 6,958,671
9,650,000 5.50 7/15/98 9,539,427
10,000,000 5.51 7/15/98 9,885,208
Sunshine State Governmental Financing Commission 6,266,000 5.54 5/12/98 6,255,393
Svenska Handelsbanken, Inc. 21,125,000 5.46 10/23/98 20,564,307
System Capital Finance Corporation 12,500,000 5.53 5/14/98 12,475,038
TRW, Inc.:
(Acquired 4/07/98; Cost $7,914,756) (b) 8,000,000 5.48 6/16/98 7,943,982
(Acquired 4/09/98; Cost $3,939,720) (b) 4,000,000 5.48 7/17/98 3,953,116
Tribune Company:
(Acquired 4/20/98; Cost $7,897,893) (b) 8,000,000 5.47 7/13/98 7,911,264
(Acquired 3/20/98; Cost $5,446,023) (b) 5,510,000 5.50 6/04/98 5,481,379
(Acquired 4/07/98; Cost $7,317,469) (b) 7,400,000 5.50 6/19/98 7,344,603
Triple-A One Plus Funding Corporation:
(Acquired 2/18/98; Cost $1,974,473) (b) 2,000,000 5.47 5/13/98 1,996,353
(Acquired 4/09/98; Cost $12,872,658) (b) 13,000,000 5.51 6/12/98 12,916,432
Tulip Funding Corporation
(Acquired 4/24/98; Cost $27,295,823) (b) 27,695,000 5.52 7/27/98 27,325,549
USAA Capital Corporation 3,550,000 5.42 10/30/98 3,452,726
17,100,000 5.46 7/17/98 16,900,300
UNIfunding, Inc. 22,450,000 5.48 10/21/98 21,858,792
Variable Funding Capital Corporation:
(Acquired 4/09/98; Cost $16,761,924) (b) 17,000,000 5.48 7/10/98 16,818,856
(Acquired 3/31/98; Cost $4,682,020) (b) 4,750,000 5.54 7/02/98 4,704,680
Warner Lambert Company 558,300 5.23 Upon Demand 558,300
West Baton Rouge Parish, Louisiana:
(Acquired 3/13/98; Cost $5,000,000) (b) 5,000,000 5.63 7/08/98 5,000,000
(Acquired 3/12/98; Cost $10,000,000) (b) 10,000,000 5.64 7/21/98 10,000,000
Whiting, Indiana Industrial Sewage and
Solid Waste Disposal Revenue 10,000,000 5.60 7/09/98 10,000,000
Wood Street Funding Corporation:
(Acquired 4/20/98; Cost $5,920,105) (b) 6,000,000 5.51 7/16/98 5,930,207
(Acquired 4/09/98; Cost $2,984,332) (b) 3,000,000 5.53 5/13/98 2,994,470
Yorkshire Building Society 19,350,000 5.50 6/08/98 19,237,662
- ----------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER 1,622,365,709
- ----------------------------------------------------------------------------------------------------------
CORPORATE OBLIGATIONS 3.2%
American Honda Finance Corporation Floating
Rate Medium Term Notes (Acquired 7/22/97;
Cost $4,000,000) (b) 4,000,000 5.69 7/27/98 4,000,000
Bank of America National Association Phoenix,
Arizona Short Term Bank Notes, Tranche #7 4,000,000 5.95 10/22/98 3,999,089
7
<PAGE>
SCHEDULE OF INVESTMENTS IN SECURITIES (CONTINUED) APRIL 30, 1998 (UNAUDITED)
- -----------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (a) Cost
Security (Note 2)
- -----------------------------------------------------------------------------------------------------------
Beta Finance, Inc. (Acquired 10/27/97;
Cost $20,000,000) (b) $20,000,000 6.00% 10/27/98 $ 20,000,000
CS First Boston, Inc. Floating
Rate Medium Term Notes
(Acquired 6/29/95; Cost $25,000,000) (b) 25,000,000 5.84 7/07/98 25,000,000
Federal Farm Credit Medium Term Notes 1,065,000 6.30 7/20/98 1,066,818
General Motors Acceptance Corporation 5,000,000 6.15 5/22/98 4,999,413
- -----------------------------------------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS 59,065,320
- -----------------------------------------------------------------------------------------------------------
TAXABLE VARIABLE RATE PUT BONDS 7.3%
Alabama State Industrial Development
Authority - S-Tool Project 7,100,000 5.75 5/07/98 7,100,000
Aurora, Kane & DuPage Counties, Illinois
Industrial Development Revenue 1,400,000 5.75 5/07/98 1,400,000
Botsford General Hospital Revenue 2,500,000 5.65 5/01/98 2,500,000
Chattanooga, Tennessee Industrial Development
Board Revenue - Radisson Read Project 3,660,000 6.36 5/07/98 3,660,000
Community Health Systems, Inc. 3,400,000 5.80 5/06/98 3,400,000
Health Midwest Ventures Group, Inc. 8,250,000 5.70 5/06/98 8,250,000
Illinois Housing Development Revenue Bond 14,345,000 5.79 5/01/98 14,345,000
KinderCare Learning Centers, Inc. 4,000,000 5.72 5/06/98 4,000,000
Mississippi Business Finance Corporation
Industrial Development - GE Plastics Project 2,500,000 5.67 5/01/98 2,500,000
Mississippi Business Finance Corporation Industrial
Development - Morton International, Inc. 14,500,000 5.79 5/01/98 14,500,000
Montgomery County, Pennsylvania Industrial
Development Authority Revenue 3,165,000 5.75 5/06/98 3,165,000
New Jersey Economic Development Authority
Economic Development Revenue - MSNBC/CNBC 9,300,000 5.69 5/01/98 9,300,000
New Jersey Sports & Exposition Authority
Sports Complex Subordinated Refunding Revenue 21,275,000 5.79 5/01/98 21,275,000
Passaic County, New Jersey General Obligation
Refunding 13,500,000 5.70 5/06/98 13,500,000
J.H. Siroonian, Inc. 2,075,000 5.71 5/06/98 2,075,000
South Carolina Jobs - Economic Development
Authority Health Facilities Revenue 3,000,000 6.16 5/07/98 3,000,000
Stanislaus County, California Pension Obligations 10,000,000 5.79 5/01/98 10,000,000
Thayer Properties, LLC 3,530,000 5.75 5/07/98 3,530,000
Tifton Mall, Inc. 3,895,000 5.75 5/07/98 3,895,000
Virginia Housing Development Authority
Multi-Family Housing Revenue 1,980,000 5.79 5/01/98 1,980,000
WLB, LLC 2,000,000 5.75 5/07/98 2,000,000
- -----------------------------------------------------------------------------------------------------------
TOTAL TAXABLE VARIABLE RATE PUT BONDS 135,375,000
- -----------------------------------------------------------------------------------------------------------
UNITED STATES GOVERNMENT AND AGENCY ISSUES 3.3%
Federal Home Loan Bank Notes 12,250,000 5.70 3/17/99 12,250,000
11,375,000 5.71 3/04/99 11,375,000
Federal Home Loan Bank Bonds (c) 21,900,000 5.76 5/06/99 21,900,000
Student Loan Marketing Association Floating
Rate Notes 5,000,000 5.26 8/20/98 5,000,000
10,000,000 5.28 2/08/99 10,000,000
- -----------------------------------------------------------------------------------------------------------
TOTAL UNITED STATES GOVERNMENT AND AGENCY ISSUES 60,525,000
- -----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES 102.1% 1,897,061,189
Other Assets and Liabilities, Net (2.1%) (39,216,240)
- -----------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $1,857,844,949
===========================================================================================================
LEGEND
- -----------------------------------------------------------------------------------------------------------
(a) Maturity date represents actual maturity or the earlier 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) Restricted security.
(c) All or a portion of security is when-issued.
Percentages are stated as a percent of net assets.
See notes to financial statements.
8
</TABLE>
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------
April 30, 1998 (Unaudited)
ASSETS:
Investments in Securities, at Amortized Cost $1,897,061,189
Interest Receivable 4,014,296
Other Assets 151,102
--------------
Total Assets 1,901,226,587
LIABILITIES:
Payable to Brokers for Securities Purchased 35,056,587
Payable for Fund Shares Redeemed 101,092
Dividends Payable 8,018,642
Accrued Operating Expenses and Other Liabilities 205,317
--------------
Total Liabilities 43,381,638
--------------
NET ASSETS $1,857,844,949
==============
NET ASSETS CONSIST OF:
Capital Stock (par value and paid-in capital) $1,857,844,949
==============
Capital Shares Outstanding (Unlimited Number Authorized)1,857,844,949
NET ASSET VALUE PER SHARE $1.00
======
STATEMENT OF OPERATIONS
- -------------------------------------------------------------------------------
For the Six Months Ended April 30, 1998 (Unaudited)
INTEREST INCOME $52,551,921
EXPENSES:
Investment Advisory Fees 4,581,413
Custodian Fees 31,377
Shareholder Servicing Costs 2,192,277
Reports to Shareholders 515,119
Other 114,226
-----------
Total Expenses before Waivers and Absorptions 7,434,412
Voluntary Expense Waivers and Absorptions by Advisor (3,036,255)
-----------
Expenses, Net 4,398,157
-----------
NET INVESTMENT INCOME $48,153,764
===========
See notes to financial statements.
9
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31, 1997
----------------- ----------------
(UNAUDITED)
OPERATIONS:
<S> <C> <C>
Net Investment Income $ 48,153,764 $ 99,257,747
Net Realized Loss on Investments __ (14,443,753)
-------------- --------------
Increase in Net Assets Resulting from Operations 48,153,764 84,813,994
DISTRIBUTIONS:
From Net Investment Income (48,153,764) (99,257,747)
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold 1,593,235,738 3,261,358,218
Proceeds from Reinvestment of Distributions 46,518,372 94,201,065
Payment for Shares Redeemed (1,620,287,159) (3,466,442,965)
-------------- ---------------
Net Increase (Decrease) in Net Assets from Capital Share
Transactions 19,466,951 (110,883,682)
CAPITAL CONTRIBUTION (NOTE 4) __ 14,443,753
-------------- ---------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 19,466,951 (110,883,682)
NET ASSETS:
Beginning of Period 1,838,377,998 1,949,261,680
-------------- ---------------
End of Period $1,857,844,949 $1,838,377,998
============== ===============
TRANSACTIONS IN SHARES OF THE FUND:
Sold 1,593,235,738 3,261,358,218
Issued in Reinvestment of Distributions 46,518,372 94,201,065
Redeemed (1,620,287,159) (3,466,442,965)
------------- --------------
Net Increase (Decrease) 19,466,951 (110,883,682)
============= ==============
See notes to financial statements.
10
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
April 30, 1998 (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 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 held at
April 30, 1998 were $818,368,071 and $822,169,356, respectively,
representing 44.3% of the net assets of the Fund. Of these securities,
100% are Section 4(2) commercial paper or 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 0.50% 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, 1998, other shareholder
servicing expenses paid to the Advisor, and unaffiliated directors' fees,
excluding the effects of waivers and reimbursements, for the six months then
ended were $196,622, $40,410, and $10,609, 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 year ended October
31, 1997.
11
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(a)
------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
------------------------------------- ------------------------
<CAPTION>
Net Asset Net Realized Total Net Asset
Value, Net Losses From From Net Capital Value,
Beginning Investment on Investment Investment Total Contribution End of
of Period Income Investments Operations Income Distributions (Note 4) Period
<S> <C> <C> <C> <C> <C> <C> <C> <C>
April 30, 1998(b) $1.00 $0.03 -- $0.03 ($0.03) ($0.03) -- $1.00
Oct. 31, 1997 1.00 0.05 ($0.01) 0.04 (0.05) (0.05) $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
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------
<CAPTION>
Net Ratio of Expenses Ratio of Net
Assets, Ratio of to Average Net Investment
End of Expenses Assets Without Income
Total Period (In to Average Waivers and to Average
Return Millions) Net Assets Absorbtions Net Assets
<S> <C> <C> <C> <C> <C>
April 30, 1998(b) +2.6% $1,858 0.5%* 0.8%* 5.2%*
Oct. 31, 1997 +5.3%(d) 1,838 0.5% 0.9% 5.2%
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, 1998 (Unaudited).
(c) In 1995, the Fund changed its fiscal year end from December to October.
Total return is not annualized.
(d) Had the Advisor not made the capital contribution as described in Note 4,
the adjusted total return would have been 4.5% for the year ended October 31,
1997.
</TABLE>
12
<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
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. 7770E98 98SMON
