THE STRONG
CASH MANAGEMENT FUNDS INVESTOR CLASS
PROSPECTUS - AUGUST 31, 1999 AS SUPPLEMENTED ON DECEMBER 31, 1999
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
THE SECURITIES AND EXCHANGE COMMISSION (SEC) HAS NOT APPROVED OR DISAPPROVED OF
THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
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TABLE OF CONTENTS
Your Investment.................................................................
Key Information.................................................................
What are the funds' goals?.....................................................1
What are the funds' principal investment strategies?...........................1
What are the main risks of investing in the funds?.............................3
What are the funds' fees and expenses?.........................................8
Who are the funds' investment advisor and portfolio managers?.................10
Other Important Information You Should Know.....................................
Comparing the Funds...........................................................12
A Word About Credit Quality...................................................13
Taxable Investments...........................................................14
If You Are Subject to Alternative Minimum Tax.................................15
Financial Highlights..........................................................15
Your Account....................................................................
Share Price...................................................................22
Buying Shares.................................................................23
Selling Shares................................................................26
Additional Policies...........................................................29
Distributions.................................................................30
Taxes.........................................................................31
Services For Investors........................................................32
Reserved Rights...............................................................36
For More Information.................................................Back Cover
IN THIS PROSPECTUS, "WE" REFERS TO STRONG CAPITAL MANAGEMENT, INC., THE
INVESTMENT ADVISOR, ADMINISTRATOR, AND TRANSFER AGENT FOR THE STRONG FUNDS.
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YOUR INVESTMENT
KEY INFORMATION
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 FUND, INVESTORS MONEY FUND, and MONEY MARKET FUND 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 is managed to provide attractive yields and a
stable share price of $1.00. It invests in a portfolio of high-quality,
short-term debt securities primarily issued by states and their political
subdivisions, such as municipalities.
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, corporate, and
mortgage- and asset-backed bonds. The fund invests primarily in higher- and
medium-quality bonds. 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 (high-yield or junk bonds), though it may not invest in bonds
rated below BB. The managers focus upon high-yield bonds rated BB with
positive or improving credit fundamentals. To help limit changes in share
price, the fund's average maturity is usually one year or less.
The MUNICIPAL ADVANTAGE FUND invests primarily in very short-term municipal
bonds. The fund invests primarily in higher and medium quality municipal bonds.
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 (high-yield or
junk bonds), though it may not invest in bonds rated below BB. The manager
focuses upon high-yield bonds rated BB with positive or improving credit
fundamentals. To help limit changes in share price, the fund's average maturity
is usually one year or less.
For the ADVANTAGE FUND and MUNICIPAL ADVANTAGE FUND, the managers may sell a
holding if its value becomes unattractive. Also, the managers may invest any
amount in cash or cash-type securities as a temporary defensive position to
avoid losses during adverse market conditions. This could reduce the benefit
to the funds if the market goes up. In this case, the funds may not achieve
their investment goal. The funds were designed for investors who seek higher
yields than those generally offered by money market funds and who are willing
to accept some modest share-price fluctuation to achieve that objective.
The MUNICIPAL MONEY MARKET and the MUNICIPAL ADVANTAGE FUNDS invest in
municipal bonds whose interest may be subject to the federal alternative
minimum tax (AMT).
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((Side Box))
Under normal market conditions, the MUNICIPAL MONEY MARKET and the MUNICIPAL
ADVANTAGE FUNDS will invest at least 80% of their assets in municipal bonds.
MUNICIPAL BONDS are debt obligations issued by or for U.S. states, territories,
and possessions and the District of Columbia and their political subdivisions,
agencies, and instrumentalities. Municipal bonds can be issued to obtain money
for public purposes or for privately operated facilities or projects. Some
municipal bonds pay interest which is exempt from federal income tax. Examples
of municipal bonds are general obligation bonds, revenue bonds, industrial
development bonds, notes, and municipal lease obligations.
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WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUNDS?
FOR THE HERITAGE MONEY, INVESTORS MONEY, MONEY MARKET, AND MUNICIPAL MONEY
MARKET FUNDS (MONEY MARKET FUNDS):
NOT INSURED: Your investment in the money market funds is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency. Each fund's 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 who are comfortable with
the risks described here and who need cash immediately. They can also be used
as a permanent conservative part of your portfolio.
FOR THE ADVANTAGE AND MUNICIPAL ADVANTAGE FUNDS (BOND FUNDS):
BOND RISKS: The major risks of each bond fund are those of investing in the
bond market. A bond's market value is affected significantly by changes in
interest rates-generally, when interest rates rise, the bond's market value
declines and when interest rates decline, its market value rises (interest-rate
risk). Generally, the longer a bond's maturity, the greater the risk and the
higher its yield. Conversely, the shorter a bond's maturity, the lower the risk
and the lower its yield (maturity risk). A bond's value can also be affected by
changes in the bond's credit-quality rating or its issuer's financial condition
(credit-quality risk). Because bond values fluctuate, the fund's share price
fluctuates. So, when you sell your investment, you may receive more or less
money than you originally invested.
HIGH-YIELD BONDS: Each of the bond funds invest a limited portion of their
assets in medium- and lower-quality bonds, including high-yield bonds (commonly
referred to as junk bonds). Lower-quality bonds involve greater interest-rate
and credit-quality risks than higher- and medium-quality bonds. High-yield
bonds possess an increased possibility that the bond's issuer may not be able
to make its payments of interest and principal. If that happens, the fund's
share price would decrease and its income distributions would be reduced. An
economic downturn or period of rising interest rates could adversely affect the
high-yield bond market and reduce the fund's ability to sell its high-yield
bonds (liquidity risk). A lack of a liquid market for these bonds could
decrease the fund's share price.
FOREIGN SECURITIES: The ADVANTAGE FUND may invest up to 25% of its assets in
foreign securities. Foreign investments involve additional risks including
currency-rate fluctuations, political and economic instability, differences in
financial reporting standards, and less-strict regulation of securities
markets.
MORTGAGE- AND ASSET-BACKED SECURITIES: The ADVANTAGE FUND and MUNICIPAL
ADVANTAGE FUND invest in mortgage-backed and asset-backed securities. These
securities are subject to prepayment risk, which is the risk 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 by investing the proceeds in a less
attractive security. This could reduce the fund's share price and its income
distributions.
The share price of each of the bond funds will vary. The ADVANTAGE FUND and
MUNICIPAL ADVANTAGE FUND are not appropriate for investors concerned primarily
with principal stability.
FUND STRUCTURE
Although each of the funds has adopted a multiple class plan, only the
ADVANTAGE FUND offers multiple classes of shares: Investor Class shares,
Institutional Class shares, and Advisor Class shares. The HERITAGE MONEY,
INVESTORS MONEY, MONEY MARKET, MUNICIPAL MONEY MARKET, and MUNICIPAL ADVANTAGE
FUNDS offer only Investor Class shares. Only the Investor Class shares of each
fund are offered in this prospectus. The principal difference between each of
the classes of shares is that the Advisor Class shares are subject to
distribution fees and expenses under a 12b-1 plan and that each class of shares
is subject to different administrative and transfer agency fees and expenses.
FUND PERFORMANCE
The return information on the next page illustrates how the performance of the
funds' Investor Class shares can vary, which is one indication of the risks of
investing in the funds. Please keep in mind that the past performance of the
funds' Investor Class shares does not represent how they will perform in the
future. The information assumes that you reinvested all dividends and
distributions. Only funds with at least one calendar year's performance appear
on the next page.
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CALENDAR YEAR TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Year Heritage Money Money Market Municipal Money Advantage Municipal Advantage
Market
- ---- ------------------- ------------------- ------------------- --------- -------------------
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 5.7% 5.3% 3.6% 6.7% 4.9%
- ---- ------------------- ------------------- ------------------- --------- -------------------
1997 5.6% 5.3% 3.6% 6.5% 5.1%
- ---- ------------------- ------------------- ------------------- --------- -------------------
1998 5.5% 5.3% 3.6% 4.8% 4.6%
- ---- ------------------- ------------------- ------------------- --------- -------------------
</TABLE>
The funds' year-to-date returns through June 30, 1999 are: HERITAGE MONEY
2.3%, MONEY MARKET 2.2%, MUNICIPAL MONEY MARKET 1.5%, ADVANTAGE 2.6%, and
MUNICIPAL ADVANTAGE 1.6%.
BEST AND WORST QUARTERLY PERFORMANCE
(During the period shown above)
<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% (3rd Q 1993)
Municipal Money Market 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>
AVERAGE ANNUAL TOTAL RETURNS
AS OF 12-31-98
FUND/INDEX 1-YEAR 5-YEAR 10-YEAR SINCE INCEPTION
HERITAGE MONEY 5.47% - - 5.69% (6-29-95)
Salomon Smith Barney 3-Month
Treasury Bill Index 5.06% - - 5.25%
MONEY MARKET 5.26% 5.22% 5.61% 5.91% (10-22-85)
Salomon Smith Barney 3-Month
Treasury Bill Index 5.06% 5.10% 5.44% 5.66%
MUNICIPAL MONEY MARKET 3.55% 3.54% 4.10% 4.23% (10-23-86)
Salomon Smith Barney 3-Month
Treasury Bill Index 5.06% 5.10% 5.44% 5.59%
ADVANTAGE 4.75% 5.79% 7.18% 7.21% (11-25-88)
Salomon Smith Barney 1-Year
Treasury Bill Index 5.89% 5.66% 6.45% 6.43%
MUNICIPAL ADVANTAGE 4.57% - - 5.01% (11-30-95)
Lehman Brothers Municipal
1 Year Bond Index 4.74% - - 4.58%
THE SALOMON SMITH BARNEY 3-MONTH TREASURY BILL INDEX IS AN UNMANAGED INDEX
GENERALLY REPRESENTATIVE OF THE AVERAGE YIELD OF THREE-MONTH TREASURY BILLS.
THE SALOMON SMITH BARNEY 1-YEAR TREASURY BENCHMARK-ON-THE-RUN INDEX 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.
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As of February 26, 1999, the 30-day yields for the following funds were as
follows: ADVANTAGE FUND, 5.85% and MUNICIPAL ADVANTAGE FUND, 3.59%. For
investors in the 36% tax bracket, the MUNICIPAL ADVANTAGE FUND'S taxable
equivalent yield was 5.61%. (Without fee waivers and absorptions, the MUNICIPAL
ADVANTAGE FUND'S yield would have been 3.54% and its taxable equivalent yield
would have been 5.53%.) For current yield information on any of the funds,
call 1-800-368-3863.
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)
All of the Strong Funds are 100% no-load, so you pay no sales charges (loads)
to buy or sell shares.
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from fund assets)
The costs of operating the funds 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 total return you receive from your fund
investment.
ANNUAL FUND OPERATING EXPENSES (AS A PERCENT OF AVERAGE NET ASSETS)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
TOTAL ANNUAL
MANAGEMENT OTHER FUND OPERATING
FUND FEES EXPENSES EXPENSES*
- ---------------------------- ---------- -------- ----------------------------
Heritage Money 0.50% 0.07% 0.57%
Investors Money** 0.50% 0.44% 0.94%
Money Market 0.50% 0.41% 0.91%
Municipal Money Market 0.50% 0.13% 0.63%
Advantage 0.35% 0.40% 0.75%
Municipal Advantage 0.60% 0.05% 0.65%
</TABLE>
*TOTAL EXPENSES FOR THE HERITAGE MONEY FUND, THE MONEY MARKET FUND, AND THE
MUNICIPAL ADVANTAGE FUND DO NOT REFLECT OUR WAIVER OF MANAGEMENT FEES AND/OR
ABSORPTIONS. WITH WAIVERS AND/OR ABSORPTIONS, THE TOTAL EXPENSES WERE:
HERITAGE MONEY FUND, 0.32%, MONEY MARKET FUND, 0.62%, AND MUNICIPAL ADVANTAGE
FUND, 0.55%. WE CAN TERMINATE WAIVERS AND/OR ABSORPTIONS FOR THESE FUNDS AT ANY
TIME.
**WE HAVE CONTRACTUALLY AGREED TO WAIVE OUR MANAGEMENT FEES AND ABSORB EXPENSES
TO KEEP TOTAL EXPENSES AT 0.25% UNTIL JULY 1, 2000 .
EXAMPLE: This example is intended to help you compare the cost of investing in
the funds, before fee waivers and expense absorptions, 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 $96 $300 $520 $1,155
Money Market $93 $290 $504 $1,120
Municipal Money Market $64 $202 $351 $786
Advantage $77 $240 $417 $930
Municipal Advantage $66 $208 $362 $810
</TABLE>
WHO ARE THE FUNDS' INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
Strong Capital Management, Inc. (Strong) is the investment advisor for the
funds. Strong provides investment management services for mutual funds and
other investment portfolios representing assets of over $36 billion. Strong
began conducting business in 1974. Since then, its principal business has been
providing investment advice for individuals and institutional
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accounts, such as pension and profit-sharing plans, as well as mutual funds,
several of which are available through variable insurance products. Strong's
address is P.O. Box 2936, Milwaukee, WI 53201.
The following individuals are the funds' portfolio managers.
JOHN C. BONNELL co-manages the MUNICIPAL MONEY MARKET FUND. He has over 10
years of investment experience and is a Chartered Financial Analyst. He joined
Strong as a co-portfolio manager of the fund in May 1999. For ten years prior
to joining Strong, Mr. Bonnell worked at USAA Investment Management Company,
most recently serving as an executive director and portfolio manager. From
1995 to 1996, he was a senior securities analyst and from 1991 to 1995 he
served as a securities analyst. From 1989 to 1991, Mr. Bonnell was a portfolio
assistant. Mr. Bonnell received his bachelors degree in Finance from the
University of Texas in 1987 and his Masters of Business Administration from St.
Mary's University in 1991.
STEVEN D. HARROP co-manages the MUNICIPAL MONEY MARKET FUND and manages the
MUNICIPAL ADVANTAGE FUND. He has over 25 years of investment experience and is
a Chartered Financial Analyst. He joined Strong as a portfolio manager in March
1991. He has managed the MUNICIPAL MONEY MARKET FUND since March 1991 and the
MUNICIPAL ADVANTAGE FUND since November 1995. Prior to joining Strong, Mr.
Harrop was employed by USAA Investment Management Company, where he co-managed
a balanced fund and managed five tax-exempt funds. Mr. Harrop received his
bachelors degree in Business from Brigham Young University in 1972 and his
masters degree in Business from Northwestern University in 1973.
JEFFREY A. KOCH co-manages the ADVANTAGE FUND. He has over 10 years of
investment experience and is a Chartered Financial Analyst. He has been a
portfolio manager since January 1990. He joined Strong as a securities analyst
in June 1989. He has managed or co-managed the ADVANTAGE FUND since July 1991.
Prior to joining Strong, Mr. Koch was employed by Fossett Corporation, a
clearing firm, as a market maker clerk . Mr. Koch received his bachelors
degree in Economics from the University of Minnesota in 1987 and his Masters of
Business Administration in Finance from Washington University in 1989.
JAY N. MUELLER manages the HERITAGE MONEY FUND, MONEY MARKET FUND, and
INVESTORS MONEY FUND. He has over 15 years of investment experience and is a
Chartered Financial Analyst. He joined Strong as a securities analyst and
portfolio manager in September 1991. He has managed the HERITAGE MONEY FUND
since its inception in June 1995, the MONEY MARKET FUND since September 1991,
and the INVESTORS MONEY FUND since its inception in January 1998. For four
years prior to joining Strong, Mr. Mueller was employed by R. Meeder &
Associates as a securities analyst and portfolio manager. Mr. Mueller received
his bachelors degree in Economics from the University of Chicago in 1982.
THOMAS A. SONTAG co-manages the ADVANTAGE FUND. He has over 15 years of
industry experience. He joined Strong in November 1998 as a co-portfolio
manager of the ADVANTAGE FUND. For 12 years prior to joining Strong, Mr. Sontag
worked at Bear Stearns & Co., most recently serving as a Managing Director of
the Fixed Income Department from 1990 to November 1998. From September 1982
until December 1985, Mr. Sontag was employed in the Fixed Income Department at
Goldman Sachs & Co. Mr. Sontag received his bachelors degree in
Economics/Finance from the University of Wisconsin in 1981 and his Masters of
Business Administration in Finance from the University of Wisconsin in 1982.
((Side Box))
YEAR 2000 ISSUES
Your investment could be adversely affected if the computer systems used by the
funds, Strong, and the funds' service providers do not properly process and
calculate date-related information before, on, and after January 1, 2000. Year
2000-related computer problems could have a negative impact on your fund and
the fund's investments, however, we are working to avoid these problems and to
obtain assurances from our service providers that they are taking similar
steps. Please note that Year 2000-related computer problems may have a greater
negative impact on foreign capital markets and foreign investments, especially
in emerging markets.
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OTHER IMPORTANT INFORMATION YOU SHOULD KNOW
COMPARING THE FUNDS
The following will help you distinguish the funds and determine their
suitability for your investment needs:
AVERAGE INCOME
FUND MATURITY CREDIT QUALITY POTENTIAL VOLATILITY
Heritage Money 90 days Two highest ratings Low Stable, but not
Investors Money or less guaranteed
Money Market
Municipal Money Market
Advantage 1 year or At least 75% rated Low to Very Low
less higher- and medium- Moderate
quality
Up to 25% rated
lower-quality
Municipal Advantage 1 year or At least 90% rated Low to Very Low
less higher- and medium- Moderate
quality
Up to 10% rated
lower-quality
A WORD ABOUT CREDIT QUALITY
CREDIT QUALITY measures the issuer's expected ability to pay interest and
principal payments on time. Credit quality can be "higher-quality",
"medium-quality", "lower-quality", or "in default".
HIGHER-QUALITY means bonds that are in any of the three highest rating
categories. For example, bonds rated AAA to A by Standard & Poor's Ratings
Group (S&P)*.
MEDIUM-QUALITY means bonds that are in the fourth-highest rating category. For
example, bonds rated BBB by S&P*.
LOWER-QUALITY means bonds that are below the fourth-highest rating category.
They are also known as non-investment, high-risk, high-yield, or "junk bonds".
For example, bonds rated BB to C by S&P*.
IN DEFAULT means the bond's issuer has not paid principal or interest on time.
* OR THOSE RATED IN THIS CATEGORY BY ANY NATIONALLY RECOGNIZED STATISTICAL
RATING ORGANIZATION. S&P IS ONLY ONE EXAMPLE OF A NATIONALLY RECOGNIZED
STATISTICAL RATING ORGANIZATION.
This chart shows S&P's definition and ratings group for credit quality. Other
rating organizations use similar definitions.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
CREDIT S&P'S DEFINITION S&P'S RATINGS GROUP RATING CATEGORY
QUALITY
- ---------- ---------------------- ---------------------- ----------------------
Higher Highest quality AAA First highest
High quality AA Second highest
Upper medium grade A Third highest
- ---------- ---------------------- ---------------------- ----------------------
Medium Medium grade BBB Fourth highest
- ---------- ---------------------- ---------------------- ----------------------
Lower Low grade BB
Speculative B
Submarginal CCC, CC, C
- ---------- ---------------------- ----------------------
In default Probably in default D
- ---------- ---------------------- ----------------------
</TABLE>
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We determine a bond's credit quality rating at the time of investment by
conducting credit research and analysis and by relying on credit ratings of
several nationally recognized statistical rating organizations. These
organizations are called NRSROs. When we determine if a bond is in a specific
category, we may use the highest rating assigned to it by any NRSRO. If a bond
is not rated, we rely on our credit research and analysis to rate the bond. If
a bond's credit-quality rating is downgraded after our investment, we monitor
the situation to decide if we need to take any action such as selling the bond.
Typically, municipal bonds are not rated. This means that investments in
municipal bonds may require more credit analysis by us than investments in
taxable bonds. Also, investments in lower-quality bonds (junk bonds) will be
more dependent on our credit analysis than would be higher-quality bonds
because, while lower-quality bonds generally offer higher yields than
higher-quality bonds with similar maturities, lower-quality bonds involve
greater risks. These include the possibility of default or bankruptcy because
the issuer's capacity to pay interest and repay principal is considered
predominantly speculative. Also, lower-quality bonds are less liquid, meaning
that they may be harder to sell than bonds of higher quality because the demand
for them may be lower and there are fewer potential buyers. This lack of
liquidity may lower the value of the fund and your investment.
TAXABLE INVESTMENTS
The MUNICIPAL MONEY MARKET FUND and the MUNICIPAL ADVANTAGE FUND may invest up
to 20% of their net assets in U.S. government and corporate bonds, and other
debt securities that are of the same quality as the fund's investments in
municipal bonds. The MUNICIPAL ADVANTAGE FUND will generally invest in these
bonds to take advantage of capital gain opportunities. These bonds produce
taxable income, unlike municipal bonds which generally provide tax-exempt
income.
IF YOU ARE SUBJECT TO THE ALTERNATIVE MINIMUM TAX
The MUNICIPAL MONEY MARKET FUND and the MUNICIPAL ADVANTAGE FUND may invest,
without limitation, in municipal obligations whose interest is a tax-preference
item for purposes of the federal alternative minimum tax (AMT). If you are
subject to the AMT, a substantial portion of your fund's distributions to you
may not be exempt from federal income tax. If this is the case, a fund's net
return to you may be lower.
FINANCIAL HIGHLIGHTS
This information describes investment performance of the Investor Class shares
of the funds for the periods shown. Certain information reflects financial
results for a single Investor Class share. "Total Return" shows how much an
investment in the Investor Class shares of the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been audited by PricewaterhouseCoopers LLP,
whose report, along with the fund's financial statements, is included in the
fund's annual report.
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YOUR ACCOUNT
All of the Strong Funds are 100% no-load. This means that you may purchase,
redeem, or exchange shares directly at their net asset value without paying a
sales charge.
SHARE PRICE
Your transaction price for buying, selling, or exchanging shares of the funds
or the Investor Class of the Advantage Fund is the net asset value per share
(NAV) for that fund or class of shares. NAV is generally calculated as of the
close of trading on the New York Stock Exchange (usually 3:00 p.m. Central
Time) every day the NYSE is open. If the NYSE closes at any other time, or if
an emergency exists, NAV may be calculated at a different time. Your share
price will be the next NAV calculated after we accept your order.
For the money market funds, we use amortized cost to value money market
securities held by a fund.
((Side Box))
<TABLE>
<CAPTION>
<S> <C>
When we use AMORTIZED COST to value money market
fund securities, we generally mean that the security is
initially valued at the price we paid for it. After that, the
value of the security is gradually increased (amortizing a
discount) or decreased (amortizing a premium) each day
without regard to fluctuating interest rates.
- --------------------------------------------------------------
</TABLE>
For the bond funds, NAV is based on the market value of the securities in a
fund's portfolio. If market prices are not available, NAV is based on a
security's fair value as determined in good faith by us under the supervision
of the Board of Directors of the Strong Funds.
FOREIGN SECURITIES
Some of the bond funds' portfolio securities may be listed on foreign exchanges
that trade on days when we do not calculate an NAV. As a result, the market
value of securities in a fund's portfolio may change on days when you will not
be able to purchase or redeem shares. In addition, a foreign exchange may not
value its listed securities at the same time that we calculate a fund's NAV.
Events affecting the values of portfolio securities that occur between the time
a foreign exchange assigns a price to the portfolio securities and the time
when we calculate a fund's NAV generally will not be reflected in the fund's
NAV. These events will be reflected in the fund's NAV when we, under the
supervision of the Board of Directors of the Strong Funds, determine that they
would have a material effect on the fund's NAV.
((Side Box))
<TABLE>
<CAPTION>
<S> <C>
We determine the share price or NAV of a fund or class
by dividing net assets attributable to the fund or class
(the value of the investments, cash, and other assets
attributable to the fund or class minus the liabilities
attributable to the fund or class) by the number of fund
or class shares outstanding.
- --------------------------------------------------------
</TABLE>
11
<PAGE>
BUYING SHARES
INVESTMENT MINIMUMS: When buying shares, you must meet the following investment
minimum requirements.
<TABLE>
<CAPTION>
<S> <C> <C>
INITIAL INVESTMENT MINIMUM ADDITIONAL INVESTMENT MINIMUM
- ----------------------------- -------------------------------------- --------------------------------------
Regular accounts $2,500 for all funds EXCEPT: $50 for all funds EXCEPT:
$1,000 for INVESTORS MONEY FUND $1,000 for HERITAGE MONEY FUND
$25,000 for HERITAGE MONEY FUND
- ----------------------------- -------------------------------------- --------------------------------------
Education IRA accounts $500 $50
(not available for HERITAGE
MONEY FUND)
- ----------------------------- -------------------------------------- --------------------------------------
Other IRAs and $250 for all funds EXCEPT: $50 for all funds EXCEPT:
UGMA/UTMA accounts $25,000 for HERITAGE MONEY FUND $1,000 for HERITAGE MONEY FUND
- ----------------------------- -------------------------------------- --------------------------------------
SIMPLE IRA, SEP-IRA, the lesser of $250 or $25 per month $50 for all funds EXCEPT:
403(b)(7), Keogh, Pension for all funds EXCEPT: $1,000 for HERITAGE MONEY FUND
Plan, and Profit Sharing Plan $25,000 for HERITAGE MONEY FUND
accounts
- ----------------------------- -------------------------------------- --------------------------------------
</TABLE>
PLEASE REMEMBER ...
- - If you use an Automatic Investment Plan, we waive the initial investment
minimum to open an account and the additional investment minimum is $50.
This waiver does not apply to the HERITAGE MONEY FUND.
- - You cannot use an Automatic Investment Plan with an Education IRA.
- - If you open a qualified retirement plan account where we or one of our
alliance partners provides administrative services, there is no initial
investment minimum, except for the HERITAGE MONEY FUND which is $25,000.
- - For the INVESTORS MONEY FUND:
- - You may only open one regular account. You may not make additional purchases
after your account reaches $50,000. If you participate in an Automatic
Investment Plan, we will discontinue the plan after your account reaches
$50,000.
- - You may open up multiple IRA accounts. You may not make additional purchases
into your IRA accounts once the aggregate value of all of your IRA accounts
in the fund reaches $50,000. If you participate in an Automatic Investment
Plan, we will discontinue the plan after the value of your IRA accounts
reaches $50,000.
The ADVANTAGE FUND has adopted a multiple class plan which currently permits it
to offer three classes of shares: Investor Class shares, Institutional Class
shares, and Advisor Class shares. The HERITAGE MONEY, INVESTORS MONEY, MONEY
MARKET, MUNICIPAL MONEY MARKET, and MUNICIPAL ADVANTAGE FUNDS each have adopted
a multiple class plan that currently permits each fund to offer only Investor
Class shares. Each class is offered at its net asset value without the
imposition of any sales load, however, each class of shares is subject to fees
and expenses which may differ. The principal difference between each of the
classes of shares is that the Advisor Class shares are subject to distribution
fees and expenses under a 12b-1 plan and that each class of shares is subject
to different administrative and transfer agency fees and expenses.
BUYING INSTRUCTIONS
You can buy shares in several ways.
MAIL
You can open or add to an account by mail with a check or money order made
payable to Strong Funds. Send it to the address listed on the back of this
prospectus, along with your account application (for a new account) or an
Additional Investment Form (for an existing account).
12
<PAGE>
EXCHANGE OPTION
Sign up for the exchange option when you open your account. To add this
option to an existing account, visit the Shareholder Services area of Strong
On-line (WWW.ESTRONG.COM) or call 1-800-368-3863 for a Shareholder Account
Options Form.
((Side Box))
Questions?
Call 1-800-368-3863
24 hours a day,
7 days a week
EXPRESS PURCHASESM
You can make additional investments to your existing account directly from
your bank account. If you didn't establish this option when you opened your
account, visit the Shareholder Services area of Strong On-line
(WWW.ESTRONG.COM) or call us at 1-800-368-3863 for a Shareholder Account
Options Form.
STRONG DIRECT(R)
You can use Strong Direct(R) to add to your investment from your bank account
or to exchange shares between Strong Funds by calling 1-800-368-7550. See
"Services for Investors" for more information.
STRONG NETDIRECT(R)
You can use Strong netDirect(R) at our web site, WWW.ESTRONG.COM, to add to
your investment from your bank account or to exchange shares between Strong
Funds. See "Services for Investors" for more information.
INVESTOR CENTER
You can visit our Investor Center in Menomonee Falls, Wisconsin, near
Milwaukee. Call 1-800-368-3863 for hours and directions. The Investor Center
only accepts checks or money orders payable to Strong Funds. It does not
accept cash or third-party checks.
WIRE
Call 1-800-368-3863 for instructions before wiring funds either to open or add
to an account. This helps to ensure that your account will be credited
promptly and correctly.
AUTOMATIC INVESTMENT SERVICES
See "Services for Investors" for detailed information on all of our automatic
investment services. You can sign up for these plans when you open your
account or call 1-800-368-3863 for instructions on how to add them.
BROKER-DEALER
You may purchase shares through a broker-dealer or other intermediary who may
charge you a fee.
PLEASE REMEMBER . . .
- - Make checks or money orders payable to Strong Funds.
- - We do not accept cash, third-party checks (checks payable to you written by
another party), credit card convenience checks, or checks drawn on banks
outside the U.S.
- - You will be charged $20 for every check, money order, wire, or Electronic
Funds Transfer returned unpaid.
SELLING SHARES
You can access the money in your account by selling (also called redeeming)
some or all of your shares by one of the methods below. After your redemption
request is accepted, we normally send you the proceeds on the next business
day.
SELLING INSTRUCTIONS
You can sell shares in several ways.
13
<PAGE>
MAIL
Write a letter of instruction. It should specify your account number, the
dollar amount or number of shares you wish to redeem, the names and signatures
of the owners (or other authorized persons), and your mailing address. Then,
mail it to the address listed on the back of this prospectus.
REDEMPTION OPTION
Sign up for the redemption option when you open your account or add it later
by visiting the Shareholder Services area of Strong On-line (WWW.ESTRONG.COM)
or by calling 1-800-368-3863 to request a Shareholder Account Options Form.
With this option, you may sell shares by phone or via the internet and receive
the proceeds in one of three ways:
(1) We can mail a check to your account's address. Checks will not be
forwarded by the Postal Service, so please notify us if your address has
changed.
(2) We can transmit the proceeds by Electronic Funds Transfer to a
properly pre-authorized bank account. The proceeds usually will arrive at your
bank two banking days after we process your redemption.
(3) For a $10 fee, we can transmit the proceeds by wire to a properly
pre-authorized bank account. The proceeds usually will arrive at your bank the
first banking day after we process your redemption.
STRONG DIRECT(R)
You can redeem shares through Strong Direct(R) at 1-800-368-7550. See
"Services for Investors" for more information.
STRONG NETDIRECT(R)
You can use Strong netDirect(R) at our web site, WWW.ESTRONG.COM, to redeem
shares. See "Services for Investors" for more information.
INVESTOR CENTER
You can visit our Investor Center in Menomonee Falls, Wisconsin, near
Milwaukee. Call 1-800-368-3863 for hours and directions.
AUTOMATIC INVESTMENT SERVICES
You can set up automatic withdrawals from your account at regular intervals.
See "Services for Investors" for information on all of our automatic
investment services.
BROKER-DEALER
You may sell shares through a broker-dealer or other intermediary who may
charge you a fee.
CHECKWRITING
Sign up for free checkwriting when you open your account or call
1-800-368-3863 to add it later to an existing account. Check redemptions must
be for a minimum of $500 ($1,000 for HERITAGE MONEY FUND). You cannot write a
check to close out an account.
PLEASE REMEMBER ...
- - If you recently purchased shares, a redemption request on those shares will
not be honored until 10 days after we receive the purchase check or
electronic transaction.
- - You will be charged a $10 service fee for a stop-payment on a check written
on your Strong Funds account.
- - Some transactions and requests require a signature guarantee.
- - If you are selling shares you hold in certificate form, you must submit the
certificates with your redemption request. Each registered owner must sign
the certificates and all signatures must be guaranteed.
- - With an IRA (or other retirement account), you will be charged (1) a $10
annual account maintenance fee for each account up to a maximum of $30 and
(2) a $10 fee for transferring assets to another custodian or for closing an
account.
- - If you sell shares out of a non-IRA retirement account and you are eligible
to roll the sale proceeds into another retirement plan, we will withhold for
federal income tax purposes a portion of the sale proceeds unless you
transfer all of the proceeds to an eligible retirement plan.
14
<PAGE>
((Side Box))
There may be special distribution requirements that apply to retirement
accounts. For instructions on:
- - Roth and Traditional IRA accounts, call
1-800-368-3863, and
- - SIMPLE IRA, SEP-IRA , 403(b)(7), Keogh, Pension Plan, Profit Sharing Plan, or
401(k) Plan accounts, call 1-800-368-2882.
((Side Box))
<TABLE>
<CAPTION>
<S> <C>
SIGNATURE GUARANTEES help ensure that major
transactions or changes to your account are in fact
authorized by you. For example, we require a signature
guarantee on written redemption requests for more than
$50,000. You can obtain a signature guarantee for a
nominal fee from most banks, brokerage firms, and
other financial institutions. A notary public stamp or
seal cannot be substituted for a signature guarantee.
- --------------------------------------------------------
</TABLE>
ADDITIONAL POLICIES
TELEPHONE TRANSACTIONS
Once you place a telephone transaction request, it cannot be canceled or
modified. We use reasonable procedures to confirm that telephone transaction
requests are genuine. We may be responsible if we do not follow these
procedures. You are responsible for losses resulting from fraudulent or
unauthorized instructions received over the telephone, provided we reasonably
believe the instructions were genuine. During times of unusual market
activity, our phones may be busy and you may experience a delay placing a
telephone request. During these times, consider trying STRONG DIRECT(R), our
24-hour automated telephone system, by calling 1-800-368-7550, or STRONG
NETDIRECT(R), our on-line transaction center, by visiting WWW.ESTRONG.COM.
Please remember that you must have telephone redemption as an option on your
account to redeem shares through STRONG DIRECT(R) or STRONG NETDIRECT(R).
INVESTING THROUGH A THIRD PARTY
If you invest through a third party (rather than directly with Strong Funds),
the policies and fees may be different than described in this prospectus.
Banks, brokers, 401(k) plans, financial advisors, and financial supermarkets
may charge transaction fees and may set different minimum investments or
limitations on buying or selling shares. Consult a representative of your
plan or financial institution if you are not sure.
HERITAGE MONEY FUND ACCOUNT MAINTENANCE AND TRANSACTION FEES
For the HERITAGE MONEY FUND, a $3 fee will be charged for each exchange,
redemption, or check transaction. A $3 quarterly account maintenance fee is
also charged if the balance in your HERITAGE MONEY FUND is less than $25,000.
HOWEVER, WE WILL WAIVE THESE FEES IF YOUR COMBINED STRONG FUNDS' ACCOUNT
BALANCE IS $100,000 (OR HIGHER) AT THE END OF THE QUARTER DURING WHICH, (1)
YOU EXCHANGED, REDEEMED OR WROTE A CHECK, OR (2) YOUR ACCOUNT BALANCE FELL
BELOW $25,000.
DISTRIBUTIONS
DISTRIBUTION POLICY
Each fund generally pays you dividends from net investment income monthly and
distributes any net capital gains that it realizes annually. Dividends are
declared on each day NAV is calculated, except for bank holidays. Dividends
earned on weekends, holidays, and days when the fund's NAV is not calculated
are declared on the first day preceding these days that the fund's NAV is
calculated. Your investment generally earns dividends from the first business
day after we accept your purchase order.
15
<PAGE>
REINVESTMENT OF DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS
Your dividends and capital gain distributions will be automatically reinvested
in additional shares, unless you choose otherwise. Your other options are to
receive checks for these payments, have them automatically invested in another
Strong Fund, or have them deposited into your bank account. To change the
current option for payment of dividends and capital gains distributions,
please call 1-800-368-3863.
TAXES
TAXABLE DISTRIBUTIONS
Any net investment income and net short-term capital gain distributions you
receive are taxable as ordinary dividend income at your income tax rate.
Distributions of net capital gains are generally taxable as long-term capital
gains. This is generally true no matter how long you have owned your shares
and whether you reinvest your distributions or take them in cash. You may also
have to pay taxes when you exchange or sell shares if your shares have
increased in value since you bought them.
TAX-EXEMPT DISTRIBUTIONS
Exempt-interest dividends from municipal funds are generally exempt from
federal income taxes, but may be subject to state and local tax. Also, if you
are subject to the Alternative Minimum Tax, you may have to pay federal tax on
a portion of your income from exempt-interest dividends.
((Side Box))
<TABLE>
<CAPTION>
<S> <C>
Generally, if your investment is in a Traditional IRA or
other TAX-DEFERRED ACCOUNT, your dividends and
distributions will not be taxed at the time they are paid,
but instead at the time you withdraw them from your
account.
- ----------------------------------------------------------
</TABLE>
RETURN OF CAPITAL
If your fund's (1) income distributions exceed its net investment income and
net short-term capital gains or (2) capital gain distributions exceed its net
capital gains in any year, all or a portion of those distributions may be
treated as a return of capital to you. Although a return of capital is not
taxed, it will reduce the cost basis of your shares.
YEAR-END STATEMENT
To assist you in tax preparation, after the end of each calendar year, we send
you a statement of your fund's ordinary dividends and net capital gain
distributions (Form 1099).
BACKUP WITHHOLDING
By law, we must withhold 31% of your distributions and proceeds if (1) you are
subject to backup withholding or (2) you have not provided us with complete
and correct taxpayer information such as your Social Security Number (SSN) or
Tax Identification Number (TIN).
((Side Box))
<TABLE>
<CAPTION>
<S> <C>
Unless your investment is in a tax-deferred retirement
account such as an IRA, you may want to avoid selling
shares of a mutual fund at a loss and then investing in the
same fund within 30 days before or after the sale. This is
called a WASH SALE and you will not be allowed to claim a
tax loss on the transaction.
- -----------------------------------------------------------
</TABLE>
((Side Box))
<TABLE>
<CAPTION>
<S> <C>
COST BASIS is the amount that you paid for the shares.
When you sell shares, you subtract the cost basis from the
sale proceeds to determine whether you realized an
investment gain or loss. For example, if you bought a
share of a fund at $10 and you sold it two years later at
$11, your cost basis on the share is $10 and your gain is
$1.
</TABLE>
16
<PAGE>
Because everyone's tax situation is unique, you should consult your tax
professional for assistance.
SERVICES FOR INVESTORS
Strong provides you with a variety of services to help you manage your
investment. For more details, call 1-800-368-3863, 24 hours a day, 7 days a
week. These services include:
STRONG DIRECT(R) AUTOMATED TELEPHONE SYSTEM
Our 24-hour automated response system enables you to use a touch-tone phone to
access current share prices
(1-800-368-3550), to access fund and account information (1-800-368-5550),
and to make purchases, exchanges, or redemptions among your existing accounts
if you have elected these services (1-800-368-7550). Passwords help to
protect your account information.
STRONG ON-LINE
Visit us on-line at WWW.STRONGFUNDS.COM to access your fund's performance and
portfolio holding information. In addition to general information about
investing, Strong On-line offers daily performance information, portfolio
manager commentaries, and information on available account options.
STRONGMAIL
If you register for StrongMail at WWW.STRONGMAIL.COM, you will receive your
fund's closing price by e-mail each business day. In addition, StrongMail
offers market news and updates throughout the day.
STRONG NETDIRECT(R)
If you are a shareholder, you may use netDirect(R) to access your account
information 24 hours a day from your personal computer. Strong netDirect(R)
allows you to view account history, account balances, and recent dividend
activity, as well as to make purchases, exchanges, or redemptions among your
existing accounts if you have elected these services. Encryption technology
and passwords help to protect your account information. You may register to
use netDirect(R) at WWW.ESTRONG.COM.
STRONG EXCHANGE OPTION
You may exchange your shares of a fund for shares of another Strong Fund,
either in writing, by telephone, or through your personal computer, if the
accounts are identically registered (with the same name, address, and taxpayer
identification number). Please ask us for the appropriate prospectus and read
it before investing in any of the Strong Funds. Remember, an exchange of
shares of one Strong Fund for those of another Strong Fund is considered a
sale and a purchase of fund shares for tax purposes and may result in a
capital gain or loss. Some Strong Funds that you may want to exchange into may
charge a redemption fee of 0.50% to 1.00% on the sale of shares held for less
than six months. Purchases by exchange are subject to the investment
requirements and other criteria of the fund purchased.
STRONG CHECKWRITING
Strong Funds offers checkwriting on most of its bond and money market funds.
Checks written on your account are subject to this prospectus and the terms
and conditions found in the front of the book of checks. You can write only
three checks on your accounts in the INVESTORS MONEY FUND.
17
<PAGE>
STRONG AUTOMATIC INVESTMENT SERVICES
You may invest or redeem automatically in the following ways, some of which
may be subject to additional restrictions or conditions.
AUTOMATIC INVESTMENT PLAN (AIP)
This plan allows you to make regular, automatic investments from your bank
checking or savings account.
AUTOMATIC EXCHANGE PLAN
This plan allows you to make regular, automatic exchanges from one eligible
Strong Fund to another.
AUTOMATIC DIVIDEND REINVESTMENT
Your dividends and capital gains will be automatically reinvested in
additional shares unless you choose otherwise. Your other options are to
receive checks for these payments, have them automatically invested in another
Strong Fund, or have them deposited into your bank account.
NO-MINIMUM INVESTMENT PLAN
This plan allows you to invest without meeting the minimum initial investment
requirements if you invest monthly and you participate in the AIP, Automatic
Exchange Plan, or Payroll Direct Deposit Plan.
PAYROLL DIRECT DEPOSIT PLAN
This plan allows you to send all or a portion of your paycheck, social
security check, military allotment, or annuity payment to the Strong Funds of
your choice.
SYSTEMATIC WITHDRAWAL PLAN
This plan allows you to redeem a fixed sum from your account on a regular
basis. Payments may be sent electronically to a bank account or as a check to
you or anyone you properly designate.
STRONG RETIREMENT PLAN SERVICES
We offer a wide variety of retirement plans for individuals and institutions,
including large and small businesses. For information on:
- - INDIVIDUAL RETIREMENT PLANS, including Traditional IRAs and Roth IRAs, call
1-800-368-3863.
- - QUALIFIED RETIREMENT PLANS, including SIMPLE IRAs, SEP-IRAs, 403(b)(7)s,
Keoghs, Pension Plans, Profit Sharing Plans, and 401(k) Plans, call
1-800-368-2882.
SAME-DAY DIVIDEND AND WIRE
You will earn a same-day dividend if you purchase shares and have, or with
your purchase will have, at least $5 million invested in the MONEY MARKET
FUND, the MUNICIPAL MONEY MARKET FUND, or the HERITAGE MONEY FUND and you have
completed a special application. The following rules also apply:
- - Call 1-800-368-1683 before 9:00 a.m. Central Time and place an irrevocable
purchase order.
- - You must send the purchase price via federal funds wire which must be
received by Firstar Bank Milwaukee, N.A. by 2:30 p.m. Central Time. If you do
not wire federal funds by this deadline, we may cancel the purchase order.
If we do not cancel the order and the MUNICIPAL MONEY MARKET FUND or the
HERITAGE MONEY FUND borrows an amount of money equal to your purchase price,
you may be liable for any interest expense caused by the borrowing.
- - Wires should be sent to:
18
<PAGE>
Firstar Bank Milwaukee, N.A.
777 East Wisconsin Avenue
Milwaukee, WI 53202
ABA routing number: 075000022
Account number: 112737-090
For further credit to: (insert your account number and registration)
You may also receive a same-day redemption wire by calling 1-800-368-1683.
You must place your redemption order by 9:00 a.m. Central Time. Redemption
proceeds will not earn dividends on the day in which they are wired. If you
use a same-day redemption wire to close an account, dividends credited to your
account for the month up to the day of redemption will be paid the next
business day.
SOME OF THESE SERVICES MAY BE SUBJECT TO ADDITIONAL RESTRICTIONS OR
CONDITIONS. CALL 1-800-368-3863 FOR MORE INFORMATION.
RESERVED RIGHTS
We reserve the right to:
- - Refuse, change, discontinue, or temporarily suspend account services,
including purchase, exchange, or telephone and netDirect(R) redemption
privileges, for any reason.
- - Reject any purchase request for any reason including exchanges from other
Strong Funds. Generally, we do this if the purchase or exchange is
disruptive to the efficient management of a fund (due to the timing of the
investment or an investor's history of excessive trading).
- - Change the minimum or maximum investment amounts.
- - Delay sending out redemption proceeds for up to seven days (this generally
only applies to very large redemptions without notice, excessive trading, or
during unusual market conditions).
- - Suspend redemptions or postpone payments when the NYSE is closed for any
reason other than its usual weekend or holiday closings, when trading is
restricted by the SEC, or under any emergency circumstances.
- - Make a redemption-in-kind (a payment in portfolio securities rather than
cash) if the amount you are redeeming is in excess of the lesser of (1)
$250,000 or (2) 1% of the fund's assets. Generally, redemption-in-kind is
used when large redemption requests may cause harm to the fund and its
shareholders. This includes redemptions made by checkwriting.
- - Close any account that does not meet minimum investment requirements. We
will give you notice and 60 days to begin an automatic investment program or
to increase your balance to the required minimum.
- - Reject any purchase or redemption request that does not contain all required
documentation.
Additionally, with the STRONG INVESTORS MONEY FUND, we reserve the right to:
- - Redeem shares in your regular account that exceed $50,000 (exclusive of
dividends).
- - Redeem shares in your IRA accounts that, in the aggregate, exceed $50,000
(exclusive of dividends).
- - Close accounts and redeem all shares in the accounts if you have more than
one regular account.
- - Reverse purchase orders that caused the value of your account to exceed
$50,000 (exclusive of dividends).
19
<PAGE>
FOR MORE INFORMATION
More information is available upon request at no charge, including:
SHAREHOLDER REPORTS: Additional information is available in the annual and
semi-annual report to shareholders. These reports contain a letter from
management, discuss recent market conditions, economic trends and investment
strategies that significantly affected your investment's performance during the
last fiscal year, and list portfolio holdings.
STATEMENT OF ADDITIONAL INFORMATION (SAI): The SAI contains more details about
investment policies and techniques. A current SAI is on file with the SEC and
is incorporated into this prospectus by reference. This means that the SAI is
legally considered a part of this prospectus even though it is not physically
contained within this prospectus.
To request information or to ask questions:
BY TELEPHONE FOR HEARING-IMPAIRED (TDD)
(414) 359-1400 or (800) 368-3863 (800) 999-2780
BY MAIL BY OVERNIGHT DELIVERY
Strong Funds Strong Funds
P.O. Box 2936 900 Heritage Reserve
Milwaukee, Wisconsin 53201-2936 Menomonee Falls, Wisconsin 53051
ON THE INTERNET BY E-MAIL
View online or download documents: [email protected]
Strong Funds: www.eStrong.com
SEC*: www.sec.gov
To reduce the volume of mail you receive, only one copy of most financial
reports and prospectuses is mailed to your household. Call 1-800-368-3863 if
you wish to receive additional copies, free of charge.
This prospectus is not an offer to sell securities in any place where it would
be illegal to do so.
*YOU CAN ALSO OBTAIN COPIES BY VISITING THE SEC'S PUBLIC REFERENCE ROOM IN
WASHINGTON, D.C. OR BY SENDING YOUR REQUEST AND A DUPLICATING FEE TO THE
SECURITIES AND EXCHANGE COMMISSION'S PUBLIC REFERENCE SECTION, WASHINGTON, D.C.
20549-6009. YOU CAN CALL 1-800-SEC-0330 FOR INFORMATION ON THE OPERATION OF THE
PUBLIC REFERENCE ROOM.
Strong Heritage Money Fund, a series of Strong Heritage Reserve Series, Inc.,
SEC file number: 811-7285
Strong Investors Money Fund, a series of Strong Heritage Reserve Series, Inc.,
SEC file number: 811-7285
Strong Money Market Fund, Inc., SEC file number: 811-4374
Strong Municipal Money Market Fund, a series of Strong Municipal Funds, Inc.,
SEC file number: 811-4770
Strong Advantage Fund, a series of Strong Advantage Fund, Inc., SEC file
number: 811-5667
Strong Municipal Advantage Fund, a series of Strong Municipal Funds, Inc., SEC
file number: 811-4770
20
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