<PAGE>
THE STRONG
----------
MONEY
MARKET FUND
================================
ANNUAL REPORT o OCTOBER 31, 1998
================================
[PHOTO OF STRONG FUNDS BUILDING]
[STRONG LOGO]
STRONG FUNDS
<PAGE>
LETTER FROM THE CHAIRMAN
Dear Strong Investor,
The financial markets were moving along smoothly last summer when they
suddenly struck an air pocket. After three straight years of 20%-plus returns,
people had grown accustomed to their investments moving steadily upward. The
collapse of the Asian and Russian economies brought us back to earth in a hurry.
Fortunately, our financial markets have been resilient. The turbulence we
encountered last summer, while upsetting, turned out to be short-lived. As of
Thanksgiving week, both the Dow and the S&P indexes had hit all-time highs.
The rebound in financial markets came because the American economy is
fundamentally strong. The U.S. accounts for roughly 25% of the world's GDP.
Inflation is negligible, interest rates are falling, and unemployment is low. If
you still harbor any doubt about how well the American economy stacks up against
the rest of the world, take a trip to Asia (as I did in August) or, better yet,
Russia. America, you'll soon conclude, is sitting in the economic catbird seat.
Meanwhile, it also helps to remember that Asia was occupying the economic
high ground not too many months ago. When bust follows boom, it arrives swiftly,
without warning, and absolutely without mercy.
It is at times like these--good times--when it makes sense to step back and
assess your financial affairs. It's important to do so when things are good
because, when things are bad, fear has a way of overpowering common sense. So,
as you review your holdings, consider:
o Since 1926, the stock market has averaged an 11% return annually. The last
three years--maybe four if 1998 finishes strong--have been a historical
aberration.
o Lately, most of us have loaded up on common stocks, giving inadequate
attention to bonds and cash. We can help you bring "balance" to your
portfolio with our new Guide to Building a Strong Portfolio.
o In recent years, big Blue Chip stocks have dominated. It might be smart to
take a long look at small- and mid-cap company stocks. Relative to large
caps, they are cheap. Strong has a depth of expertise in small- and mid-cap
stocks.
o Inflation is low and interest rates may be headed lower yet. That creates
an attractive climate for bonds. I suggest you take a good look at
intermediate- and long-term, high quality bonds, both corporate and
government.
So, let last summer's "air pocket" serve as a reminder that nothing goes
up--uninterrupted --forever. The market's recent run defies history. There have
been turbulent times before and there will be disruption again. But now, while
things are good, review your investments. If you need help, call the Strong
Portfolio Specialists.
At your convenience, of course.
/s/ Dick
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THE STRONG
----------
MONEY
MARKET FUND
================================
ANNUAL REPORT o OCTOBER 31, 1998
================================
TABLE OF CONTENTS
INVESTMENT REVIEW
The Strong Money Market Fund..............................................2
NEW!
BOND GLOSSARY.................................................................4
FINANCIAL INFORMATION
Schedule of Investments in Securities.....................................5
Statement of Assets and Liabilities.......................................9
Statement of Operations..................................................10
Statements of Changes in Net Assets......................................10
Notes to Financial Statements............................................11
FINANCIAL HIGHLIGHTS.........................................................12
REPORT OF INDEPENDENT ACCOUNTANTS............................................12
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============
THE STRONG MONEY MARKET FUND
-----------============-----
FUND
HIGHLIGHTS
o The Strong Money Market Fund ranked in the top 9% in its peer category for the
twelve months ended October 31, 1998.
o The long-term track record of your Fund remains excellent. Since inception on
October 1985, the Strong Money Market Fund is ranked 3rd out of 95 funds
by Lipper Analytical Services, Inc. We are proud to have a thirteen year
record of consistently superior performance.
o The Fund continued to emphasize asset-backed commercial paper while avoiding
securities related to Japanese banks.
- ----------------------------------------
YIELD SUMMARY(1)
As of 10-30-98
- -----------------------------------
7-day current yield 4.90%
7-day effective yield 5.02%
- -----------------------------------
Average maturity 67 days
- ----------------------------------------
LIPPER TOTAL
RETURN RANKINGS(2)
As of 10-31-98
RANK AMONG
TIME MONEY MARKET
PERIOD PERCENTAGE FUNDS
- --------------------------------------
1-year Top 9% #29 of 310
5-year Top 3% #6 of 198
10-year Top 5% #6 of 124
Since
Inception Top 3% #3 of 95
Category: Money Market Funds. Rankings
and performance are historical and do
not represent future performance.
Source of Lipper rankings is Lipper
Analytical Services, Inc.
PERSPECTIVES
FROM THE MANAGER
/s/ Jay N. Mueller
Jay N. Mueller
Portfolio Manager
- --------------------------------------------------------------------------------
Interest rates fell significantly over the last year, mostly in the third
quarter of 1998. The decline was driven by a global "flight to quality," as
investors sought the safety of U.S. Treasuries. Based on 30-year Treasuries,
long- term interest rates dropped from 6.15% a year ago to 5.16% at the end of
October, while two-year Treasury yields fell almost 1.5% over the same period.
Yields on money market instruments also fell, with three-month Treasury bill
yields dropping about 0.9% over the last year.
Investors clearly anticipated the Federal Open Market Committee's (FOMC) move to
cut its official Fed Funds target to 5.25% from 5.50% on September 29. Not only
had the markets priced in the change, but also further easing of monetary policy
in the near future. Monetary authorities did not disappoint, taking the somewhat
unusual step of changing policy between scheduled FOMC meetings, cutting the Fed
Funds target rate an additional 0.25% on October 15th.
There has been a significant widening of quality spreads, the gap between
Treasury yields and corporate bond yields, over the last three months. Investors
accepted significantly lower yields in exchange for the safety of Treasury
instruments, pushing quality spreads to levels unseen since the last recession
- --------------------------------------------------------------------------------
1 Yields are annualized for the 7-day period ended October 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
absorbed expenses of 0.35% during the 7-day period ended October 30, 1998.
Otherwise, the Fund's current yield would have been 4.55%, and its effective
yield would have been 4.65%.
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.
--------------------
YIELDS ON
MONEY MARKET
INSTRUMENTS FELL,
WITH THREE-MONTH
TREASURY BILL YIELDS
DROPPING ABOUT 0.9%
OVER THE LAST YEAR.
--------------------
2
<PAGE>
seven years ago. This gap in yields appeared even in the short-term debt of
money markets, with middle-quality debt trading at significantly higher yields
than the highest-rated securities.
Maintaining a longer-than-neutral average maturity increases a portfolio's
sensitivity to changes in interest rates. We did that over the last three
months, thereby benefiting from the drop in rates. The Fund invested in debt in
the slightly longer maturity three- to six-month sector of the yield curve, in
anticipation of long-term interest rates decreasing relative to short-term
rates. That expectation came true, in the weeks before the FOMC meeting on
September 29, as long rates actually became lower than short rates.
We continued to emphasize asset-backed commercial paper to pick up higher yields
while maintaining high quality standards. We avoided Japanese-bank related
securities, sacrificing yield to avoid potential credit downgrades. The Fund
also de-emphasized financial- and brokerage-related issues that could be
downgraded if global financial turmoil continues to reduce liquidity.
We expect the distressed state of global financial markets to persist for at
least the remainder of 1998. Quality spreads are likely to remain wide while
pressure for lower rate targets from the Federal Reserve persists. We intend to
remain longer than neutral as a further drop in short-term rates remains the
most likely scenario.
We will continue to do our best to serve your investment needs.
3-MONTH T-BILL YIELDS THROUGH OCTOBER 1998
[GRAPH]
10-97 5.20%
12-97 5.35%
2-98 5.31%
4-98 4.97%
6-98 5.08%
8-98 4.83%
10-98 4.32%
Source: Bloomberg
- --------------------------------------------------------------------------------
3 An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks
to preserve the value of your investment at $1.00 per share, it is possible
to lose money by investing in the Fund.
YOUR FUND'S
APPROACH
THE STRONG MONEY MARKET FUND IS MANAGED TO PROVIDE COMPETITIVE YIELD WHILE
MAINTAINING A SHARE PRICE OF ONE DOLLAR.(3) WE DO A CAREFUL TOP-DOWN EVALUATION
OF ECONOMIC CONDITIONS BEFORE CHOOSING INDIVIDUAL SECURITIES. THE PACE OF
ECONOMIC GROWTH, THE TREND IN INFLATION, THE PATH OF FISCAL AND MONETARY
POLICY, AS WELL AS GLOBAL ECONOMIC CONDITIONS ARE ALL CONSIDERED. WE THEN USE
RIGOROUS ANALYSIS TO CHOOSE INDIVIDUAL SECURITIES SUITED TO THE CURRENT
ECONOMIC ENVIRONMENT. THIS PROCESS IS IMPLEMENTED CONTINUOUSLY, KEEPING THE FUND
POSITIONED FOR EXISTING MARKET CONDITIONS AT ALL TIMES.
- --------------------------------------------------------------------------------
MARKET
HIGHLIGHTS
o Interest rates fell sharply over the last twelve months as the economic crisis
in Asia spread around the world.
o The Federal Reserve responded to the threat of a growing "credit crunch" in
the U.S. economy by cutting short-term rates in September and again in
October.
o At the end of the fiscal year, fixed income markets reflected a belief that
more rate cuts were on the way.
3
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BOND
GLOSSARY
BOND QUALITY RATINGS--There are services that analyze the financial condition of
a bond's issuer and then assign it a rating. The best-known rating agencies are
Standard and Poors and Moody's. The highest-quality bonds are rated AAA (S&P) or
Aaa (Moody's.) The scale descends to AA, A, then BBB and so on, down to D.
Bonds with a rating of BBB or higher are considered investment-grade. Bonds
rated CC and below are considered "junk bonds." Typically, the lower a bond's
rating, the higher yield it must pay in order to compensate the bond-holder for
the added risk.
MATURITY--Like a loan, a bond must be paid off on a certain date. A bond's
maturity is the time remaining until it is paid off. Bonds typically mature in a
range from overnight to 30 years from now. Typically, bonds with longer
maturities will have higher yields and larger price changes in reaction to
interest rate changes. In rare situations, shorter-term bonds will have higher
yields; this is known as an inverted yield curve (see definition that follows.)
DURATION--Duration is similar to maturity, but also accounts for the semi-annual
interest payments made by most bonds. Duration is a useful tool for determining
a bond or a bond fund's sensitivity to interest rate changes. The higher the
duration, the more a bond's price will fluctuate when interest rates change.
TREASURY SPREAD--The Treasury spread is the difference in yield between a
Treasury bond (issued by the federal government) and a bond with an equal
maturity, but from another category, such as a corporate bond. This calculation
is used to measure the prices of corporate bonds, mortgage-backed securities and
other non-government issues relative to Treasuries. Higher spreads occur in
uncertain times when investors buy Treasuries for their safety and sell other
types of bonds.
YIELD--Yield is the income your investment is generating. It is calculated by
taking the income paid by a bond in a given period of time, often 30 days,
annualizing it and stating it as a percentage of the money invested.
YIELD CURVE--The yield curve is a graph that plots the yields of Treasury bonds
against their maturities. Under normal circumstances, this line will slope
upward, reflecting longer-maturity bonds having higher yields. In rare
circumstances, such as in a time of deflation, the yield curve may slope
downward, or "invert." The steepness of the yield curve shifts depending on
economic trends and outlooks. Properly positioned, a bond investor can profit
from these shifts.
4
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<TABLE>
SCHEDULE OF INVESTMENTS IN SECURITIES OCTOBER 31, 1998
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STRONG MONEY MARKET FUND
=======================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
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CERTIFICATES OF DEPOSIT 1.0%
<S> <C> <C> <C> <C>
Deutsche Bank AG New York, 5.66% $19,750,000 5.77% 4/14/99 $19,740,707
- ----------------------------------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT 19,740,707
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COMMERCIAL PAPER 88.3%
AC Acquisition Holding Company:
(Acquired 10/22/98; Cost $6,373,093) (b) 6,450,000 5.05 1/15/99 6,383,045
(Acquired 10/30/98; Cost $3,846,386) (b) 3,900,000 5.05 2/05/99 3,848,027
Abbey National North America Corporation 22,800,000 5.08 1/25/99 22,529,744
American Family Financial Services, Inc. 845,500 4.75 Upon Demand 845,500
American Honda Finance Corporation 5,500,000 5.05 1/29/99 5,432,106
6,740,000 5.15 1/21/99 6,662,864
Aon Corporation 9,000,000 5.52 11/05/98 8,995,860
Ascot Capital Corporation (Acquired 9/09/98 - 9/11/98;
Cost $15,631,995) (b) 15,850,000 5.41 12/11/98 15,757,069
Atlantis One Funding Corporation 9,000,000 5.02 3/26/99 8,819,280
6,000,000 5.05 3/24/99 5,880,483
6,900,000 5.29 1/15/99 6,824,970
Avon Capital Corporation (Acquired 9/09/98; Cost $2,973,827) (b) 3,000,000 5.51 11/05/98 2,998,623
Banco de Credito Sao Paolo 11,000,000 5.49 1/04/99 10,894,317
Barton Capital Corporation:
(Acquired 9/16/98; Cost $5,190,723) (b) 5,300,000 5.34 2/02/99 5,227,673
(Acquired 9/11/98; Cost $13,252,770) (b) 13,500,000 5.36 1/12/99 13,357,290
(Acquired 7/01/98; Cost $3,240,911) (b) 3,375,000 5.48 3/19/99 3,304,616
Bavaria Universal Funding Corporation:
(Acquired 10/07/98; Cost $5,615,575) (b) 5,750,000 5.07 3/22/99 5,636,629
(Acquired 10/06/98; Cost $7,083,894) (b) 7,200,000 5.23 1/25/99 7,112,136
(Acquired 10/09/98; Cost $11,620,044) (b) 11,790,000 5.35 1/14/99 11,662,095
Brazos River Authority Texas Pollution Control Revenue 8,385,000 5.52 12/11/98 8,385,000
15,550,000 5.63 12/07/98 15,550,000
British Gas Capital, Inc. 28,000,000 5.34 3/02/99 27,501,758
CSC Enterprises 6,360,000 5.00 1/22/99 6,288,450
14,800,000 5.05 1/21/99 14,633,911
Calcasieu Parish, Inc. Louisiana Industrial Development Board
Environmental Revenue 24,300,000 5.32 2/11/99 24,300,000
California Pollution Control Financing Authority Environmental
Improvement Revenue:
(Acquired 7/10/98; Cost $20,800,000) (b) 20,800,000 5.61 11/09/98 20,800,000
(Acquired 7/15/98; Cost $17,000,000) (b) 17,000,000 5.62 12/08/98 17,000,000
Campbell Soup Company 12,000,000 5.22 3/19/99 11,761,620
Centre Square Funding Corporation (Acquired 9/30/98;
Cost $958,511) (b) 970,000 5.20 12/21/98 963,135
Centric Capital Corporation:
(Acquired 9/01/98; Cost $10,357,181) (b) 10,600,000 5.39 2/01/99 10,455,578
(Acquired 7/13/98; Cost $8,846,509) (b) 9,100,000 5.51 1/11/99 9,002,504
(Acquired 8/04/98; Cost $3,451,075) (b) 3,500,000 5.53 11/03/98 3,499,462
Certain Funding Corporation:
(Acquired 9/10/98; Cost $5,769,260) (b) 5,850,000 5.46 12/10/98 5,816,285
(Acquired 9/01/98; Cost $3,978,800) (b) 4,035,000 5.51 12/01/98 4,017,090
CIGNA Corporation 9,490,000 5.12 2/02/99 9,365,829
Cogentrix of Richmond, Inc. 21,261,000 5.47 11/17/98 21,212,553
Commonwealth Bank of Australia 4,500,000 5.46 12/31/98 4,459,732
7,450,000 5.47 12/08/98 7,409,249
Cooperative Association Tractor Dealers, Inc., Series A 6,900,000 5.05 2/12/99 6,801,272
7,500,000 5.51 12/18/98 7,447,196
2,050,000 5.53 11/20/98 2,044,332
Cooperative Association Tractor Dealers, Inc., Series B 7,000,000 5.02 4/06/99 6,848,703
2,100,000 5.05 3/24/99 2,058,169
323,000 5.10 3/10/99 317,143
1,053,000 5.40 12/14/98 1,046,366
6,800,000 5.52 11/19/98 6,782,275
6,600,000 5.52 11/24/98 6,577,736
Du Pont EI de Nemours and Company 22,900,000 4.84 2/25/99 22,545,941
Duke Capital Corporation:
(Acquired 8/05/98; Cost $5,718,033) (b) 5,800,000 5.53 11/05/98 5,797,327
(Acquired 8/14/98; Cost $1,282,395) (b) 1,300,000 5.54 11/10/98 1,298,400
Edison Asset Securitization LLC:
(Acquired 9/11/98; Cost $6,182,474) (b) 6,300,000 5.33 1/15/99 6,230,977
(Acquired 7/22/98; Cost $16,720,875) (b) 17,200,000 5.51 1/20/99 16,992,028
(Acquired 7/23/98; Cost $2,235,931) (b) 2,300,000 5.51 1/21/99 2,271,838
5
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SCHEDULE OF INVESTMENTS IN SECURITIES (CONTINUED) OCTOBER 31, 1998
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STRONG MONEY MARKET FUND (continued)
=======================================================================================================================
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- -----------------------------------------------------------------------------------------------------------------------
Equilon Enterprises LLC $11,300,000 5.11% 1/14/99 $11,182,910
4,650,000 5.28 2/22/99 4,573,616
6,400,000 5.36 12/22/98 6,352,356
Eureka Securitization, Inc.:
(Acquired 10/09/98; Cost $6,902,560) (b) 7,000,000 5.22 1/13/99 6,926,920
(Acquired 9/04/98; Cost $13,614,064) (b) 13,800,000 5.45 12/02/98 13,737,325
Finova Capital Corporation 5,000,000 5.55 11/04/98 4,998,458
First Data Corporation 4,350,000 4.96 3/09/99 4,273,885
13,100,000 5.37 1/12/99 12,961,260
Ford Motor Credit Company 13,450,000 5.19 3/12/99 13,197,925
3,000,000 5.36 12/04/98 2,985,707
5,300,000 5.44 2/12/99 5,218,309
Formosa Plastics Corporation USA 17,400,000 5.00 3/05/99 17,102,750
Franklin Resources, Inc.:
(Acquired 10/22/98; Cost $4,217,578) (b) 4,275,000 5.09 1/25/99 4,224,227
(Acquired 10/15/98; Cost $3,989,300) (b) 4,000,000 5.35 11/02/98 4,000,000
(Acquired 10/15/98; Cost $2,991,529) (b) 3,000,000 5.35 11/03/98 2,999,554
(Acquired 9/09/98; Cost $7,002,547) (b) 7,100,000 5.43 12/09/98 7,060,376
GTE Corporation:
(Acquired 10/20/98; Cost $4,968,161) (b) 5,000,000 5.21 12/03/98 4,977,568
(Acquired 10/26/98; Cost $6,510,042) (b) 6,600,000 5.22 1/28/99 6,516,741
(Acquired 10/26/98; Cost $6,804,953) (b) 6,900,000 5.22 1/29/99 6,811,956
(Acquired 10/09/98; Cost $8,625,947) (b) 8,670,000 5.38 11/12/98 8,657,043
General Electric Capital Corporation 4,000,000 5.33 3/15/99 3,921,234
20,300,000 5.43 1/28/99 20,033,613
General Motors Acceptance Corporation 6,000,000 5.14 1/26/99 5,927,183
7,000,000 5.50 11/16/98 6,985,028
13,000,000 5.50 1/15/99 12,853,028
Goldman Sachs Group LP 3,510,000 5.10 2/24/99 3,453,314
10,000,000 5.48 11/19/98 9,974,122
7,900,000 5.48 11/24/98 7,873,544
Greenwich Funding Corporation (Acquired 3/26/98 - 4/14/98;
Cost $8,642,131) (b) 9,000,000 5.45 12/18/98 8,937,299
Greyhawk Funding LLC (Acquired 9/10/98 - 9/11/98;
Cost $27,293,562) (b) 27,850,000 5.38 1/22/99 27,512,748
Gulf Coast Industrial Development Authority Environmental
Facilities Revenue 15,000,000 5.56 12/09/98 15,000,000
Gulf Coast Waste Disposal Authority Pollution Control Revenue 5,500,000 5.09 2/11/99 5,500,000
6,000,000 5.59 11/10/98 6,000,000
Halifax PLC 25,500,000 5.45 1/04/99 25,256,794
Harley-Davidson Funding Corporation:
(Acquired 10/15/98; Cost $4,726,400) (b) 4,750,000 5.42 11/17/98 4,739,273
(Acquired 8/13/98; Cost $4,932,411) (b) 5,000,000 5.53 11/09/98 4,994,624
(Acquired 8/24/98; Cost $9,825,749) (b) 9,950,000 5.55 11/13/98 9,933,126
Harris County, Texas Industrial Development Corporation Solid
Waste Disposal Revenue:
(Acquired 7/09/98; Cost $5,440,000) (b) 5,440,000 5.62 11/10/98 5,440,000
(Acquired 8/11/98; Cost $9,000,000) (b) 9,000,000 5.62 12/03/98 9,000,000
(Acquired 7/15/98; Cost $3,100,000) (b) 3,100,000 5.67 12/04/98 3,100,000
(Acquired 7/31/98; Cost $6,100,000) (b) 6,100,000 5.68 12/10/98 6,100,000
Heller Financial, Inc. 12,000,000 5.64 11/23/98 11,960,520
Henkel Corporation:
(Acquired 10/05/98; Cost $1,954,625) (b) 2,000,000 4.95 3/19/99 1,962,325
(Acquired 9/18/98; Cost $6,515,404) (b) 6,650,000 5.28 2/03/99 6,559,294
(Acquired 7/23/98; Cost $2,443,781) (b) 2,500,000 5.47 12/18/98 2,482,526
(Acquired 7/06/98; Cost $5,839,547) (b) 6,000,000 5.47 12/29/98 5,948,035
(Acquired 8/07/98; Cost $7,342,163) (b) 7,500,000 5.49 12/23/98 7,441,669
Household International, Inc. (Acquired 9/03/98;
Cost $16,507,602)(b) 16,700,000 5.53 11/17/98 16,661,520
ING America Insurance Holdings, Inc. 15,300,000 4.95 2/16/99 15,077,003
5,000,000 5.10 12/15/98 4,969,542
IPALCO Enterprises:
(Acquired 10/01/98 - 10/05/98; Cost $18,663,254)(b) 18,850,000 5.21 12/11/98 18,743,618
(Acquired 9/01/98; Cost $4,945,100)(b) 5,000,000 5.49 11/12/98 4,992,375
International Securitization Corporation (Acquired 7/16/98;
Cost $11,130,335)(b) 11,450,000 5.50 1/15/99 11,320,551
Johnson & Johnson (Acquired 10/29/98; Cost $17,704,760)(b) 18,000,000 4.84 3/01/99 17,712,020
Johnson Controls, Inc. (Acquired 10/13/98; Cost $8,373,430)(b) 8,500,000 5.47 1/19/99 8,399,261
KZH Holding Corporation III (Acquired 8/06/98; Cost $5,777,641)(b) 5,860,000 5.56 11/05/98 5,857,285
KZH IV LLC (Acquired 8/24/98; Cost $9,772,361)(b) 10,000,000 5.50 1/20/99 9,879,306
Kitty Hawk Funding Corporation (Acquired 10/01/98;
Cost $15,272,511)(b) 15,485,000 5.20 1/04/99 15,344,087
6
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STRONG MONEY MARKET FUND (continued)
=======================================================================================================================
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- -----------------------------------------------------------------------------------------------------------------------
Knight Ridder, Inc.:
(Acquired 6/26/98; Cost $3,229,156) (b) $ 3,300,000 5.56% 11/12/98 $ 3,294,903
14,220,000 5.56 11/13/98 14,195,842
LG&E Capital Corporation (Acquired 9/25/98; Cost $8,404,715) (b) 8,500,000 5.31 12/10/98 8,452,358
Leland Stanford, Jr. University 4,150,000 4.80 4/12/99 4,060,913
4,625,000 5.32 2/10/99 4,556,653
Lexington Parker Capital Corporation:
(Acquired 9/09/98; Cost $5,226,851) (b) 5,300,000 5.46 12/09/98 5,270,258
(Acquired 9/04/98; Cost $246,429) (b) 250,000 5.47 12/07/98 248,671
(Acquired 8/13/98; Cost $8,777,655) (b) 9,000,000 5.49 1/22/99 8,888,828
(Acquired 7/16/98; Cost $9,042,829) (b) 9,300,000 5.50 1/13/99 9,197,700
Lloyds Bank PLC 18,380,000 5.41 2/22/99 18,070,644
6,470,000 5.47 12/31/98 6,411,998
Merrill Lynch & Company, Inc. 5,000,000 5.49 11/06/98 4,996,950
Minnesota Mining and Manufacturing Company 13,000,000 4.85 2/19/99 12,809,099
9,000,000 4.90 1/21/99 8,902,000
Minolta Corporation 2,200,000 5.41 12/10/98 2,187,434
JP Morgan & Company, Inc. 5,850,000 4.85 3/30/99 5,733,358
4,775,000 5.05 2/26/99 4,697,300
3,000,000 5.10 2/08/99 2,958,350
11,150,000 5.50 11/02/98 11,150,000
Morgan Stanley, Dean Witter, Discover & Company 5,000,000 5.48 1/22/99 4,938,350
National Australia Funding, Inc. 7,100,000 4.97 1/25/99 7,017,664
15,500,000 4.97 1/27/99 15,315,972
National Bank of Canada 12,550,000 5.13 2/03/99 12,383,681
6,700,000 5.18 12/29/98 6,645,049
National Fuel Gas Company 1,750,000 5.54 11/06/98 1,748,923
Nationwide Building Society 7,250,000 5.47 12/09/98 7,209,241
9,625,000 5.50 11/30/98 9,583,826
New York Life Capital Corporation:
(Acquired 10/23/98; Cost $13,768,008) (b) 14,000,000 4.85 2/23/99 13,786,869
(Acquired 6/09/98; Cost $10,934,922) (b) 11,250,000 5.45 12/11/98 11,183,578
Nordbanken North America, Inc. 6,000,000 5.06 1/27/99 5,927,473
10,200,000 5.14 1/08/99 10,102,426
5,200,000 5.15 1/07/99 5,150,903
Norwest Corporation 20,500,000 5.09 2/04/99 20,227,544
Oakland-Alameda County, California Coliseum Authority 7,000,000 5.52 11/17/98 7,000,000
15,000,000 5.54 11/06/98 15,000,000
Oklahoma State Industrial Finance Authority 9,500,000 5.72 11/02/98 9,500,000
Paccar Financial Corporation 4,700,000 4.91 2/26/99 4,625,641
Peacock Funding Corporation:
(Acquired 10/26/98; Cost $2,613,181) (b) 2,665,000 5.00 3/15/99 2,615,771
(Acquired 10/01/98; Cost $1,575,030) (b) 1,602,000 5.18 1/26/99 1,582,407
(Acquired 10/23/98; Cost $2,463,528) (b) 2,500,000 5.20 2/04/99 2,466,055
(Acquired 9/17/98; Cost $3,736,715) (b) 3,769,000 5.41 11/13/98 3,762,770
(Acquired 8/17/98; Cost $3,513,650) (b) 3,600,000 5.50 1/21/99 3,556,000
(Acquired 8/18/98; Cost $7,886,942) (b) 8,000,000 5.53 11/18/98 7,980,338
Rubbermaid, Inc.:
(Acquired 9/11/98; Cost $9,571,001) (b) 9,750,000 5.33 1/13/99 9,646,065
(Acquired 9/09/98; Cost $6,475,792) (b) 6,600,000 5.42 1/12/99 6,529,450
(Acquired 7/13/98; Cost $11,781,437) (b) 12,000,000 5.51 11/09/98 11,987,143
SAFECO Credit Corporation 3,200,000 5.28 1/07/99 3,169,024
E.W. Scripps Company:
(Acquired 10/09/98; Cost $4,906,531) (b) 5,000,000 5.06 2/19/99 4,923,397
(Acquired 10/07/98; Cost $7,590,525) (b) 7,700,000 5.17 1/14/99 7,619,276
(Acquired 8/12/98; Cost $7,300,938) (b) 7,500,000 5.46 2/03/99 7,394,212
Sigma Finance, Inc.:
(Acquired 7/10/98; Cost $4,856,150) (b) 5,000,000 5.48 1/15/99 4,943,678
(Acquired 6/17/98; Cost $13,467,705) (b) 13,850,000 5.49 12/15/98 13,759,179
(Acquired 5/22/98; Cost $893,950) (b) 920,000 5.51 11/23/98 917,043
Society of New York Hospital Fund, Inc. 5,000,000 5.55 12/10/98 4,970,708
Sotheby's, Inc. 4,700,000 5.52 11/06/98 4,697,117
Spintab-Swedmortgage AB 11,300,000 5.53 11/19/98 11,270,491
8,500,000 5.53 11/20/98 8,476,497
2,200,000 5.53 12/10/98 2,187,158
7
<PAGE>
SCHEDULE OF INVESTMENTS IN SECURITIES (CONTINUED) OCTOBER 31, 1998
- -----------------------------------------------------------------------------------------------------------------------
=======================================================================================================================
STRONG MONEY MARKET FUND (continued)
=======================================================================================================================
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- -----------------------------------------------------------------------------------------------------------------------
Stellar Funding Group, Inc.:
(Acquired 9/23/98; Cost $7,843,355) (b) $ 8,100,000 5.25% 3/11/99 $ 7,947,619
(Acquired 9/21/98; Cost $7,898,006) (b) 8,056,000 5.25 3/23/99 7,890,348
Sunshine State Governmental Financing Commission 7,158,000 5.45 12/10/98 7,116,822
7,000,000 5.55 11/04/98 6,997,842
TRW, Inc. (Acquired 9/11/98; Cost $988,797) (b) 1,000,000 5.45 11/24/98 996,669
Toyota Motor Credit Company 22,500,000 4.97 2/08/99 22,195,756
Tribune Company (Acquired 9/22/98; Cost $7,054,190) (b) 7,150,000 5.36 12/21/98 7,097,837
Tulip Funding Corporation:
(Acquired 10/27/98; Cost $11,047,444) (b) 11,200,000 5.33 1/27/99 11,057,393
(Acquired 10/13/98; Cost $2,024,478) (b) 2,050,000 5.40 1/04/99 2,030,627
(Acquired 9/04/98; Cost $5,917,038) (b) 6,000,000 5.47 12/04/98 5,970,827
UBS Finance, Inc. 9,000,000 5.45 12/14/98 8,942,764
17,000,000 5.47 1/05/99 16,834,684
USAA Capital Corporation 5,500,000 5.16 1/14/99 5,442,452
5,000,000 5.40 11/19/98 4,987,250
UNIfunding, Inc. 19,000,000 5.05 1/19/99 18,792,108
Variable Funding Capital Corporation:
(Acquired 7/15/98; Cost $18,465,889) (b) 19,000,000 5.50 1/15/99 18,785,194
(Acquired 8/20/98; Cost $4,781,707) (b) 4,850,000 5.51 11/20/98 4,836,638
Washington Post Company:
(Acquired 10/05/98; Cost $1,956,550) (b) 2,000,000 4.95 3/12/99 1,964,250
(Acquired 8/13/98; Cost $4,878,444) (b) 5,000,000 5.25 2/19/99 4,920,521
(Acquired 9/15/98; Cost $4,885,521) (b) 5,000,000 5.39 1/22/99 4,939,362
(Acquired 9/09/98; Cost $4,898,938) (b) 5,000,000 5.40 1/12/99 4,946,750
(Acquired 9/04/98; Cost $4,902,500) (b) 5,000,000 5.47 1/20/99 4,939,982
West Baton Rouge Parish, Louisiana:
(Acquired 7/08/98; Cost $4,100,000) (b) 4,100,000 5.62 11/12/98 4,100,000
(Acquired 7/21/98; Cost $8,000,000) (b) 8,000,000 5.66 11/20/98 8,000,000
Windmill Funding Corporation (Acquired 10/26/98;
Cost $19,134,291) (b) 19,384,000 5.27 1/22/99 19,154,154
Wood Street Funding Corporation:
(Acquired 10/08/98; Cost $9,169,929) (b) 9,300,000 5.30 1/11/99 9,204,158
(Acquired 8/13/98 - 10/20/98; Cost $5,687,077) (b) 5,771,000 5.51 11/20/98 5,755,089
Xerox Credit Corporation 15,000,000 5.33 3/03/99 14,731,279
13,100,000 5.34 3/05/99 12,860,990
Yale University 4,200,000 5.20 1/20/99 4,152,073
Yorkshire Building Society 12,750,000 4.97 3/02/99 12,538,775
4,500,000 5.32 2/17/99 4,428,845
10,000,000 5.46 2/26/99 9,824,067
- ----------------------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER 1,698,526,242
- ----------------------------------------------------------------------------------------------------------------------
CORPORATE OBLIGATIONS 1.0%
Wachovia Bank NA Short-Term Bank Notes 19,500,000 5.56 1/15/99 19,500,000
- ----------------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS 19,500,000
- ----------------------------------------------------------------------------------------------------------------------
TAXABLE VARIABLE RATE PUT BONDS 6.7%
Alabama State Industrial Development Authority - S -Tool Project 6,800,000 5.25 11/05/98 6,800,000
Aurora, Kane & DuPage Counties, Illinois Industrial
Development Revenue 1,400,000 5.25 11/05/98 1,400,000
Botsford General Hospital Revenue 4,400,000 5.25 11/04/98 4,400,000
Chattanooga, Tennessee Industrial Development Board Revenue -
Radisson Read Project 3,660,000 5.90 11/05/98 3,660,000
Community Health Systems, Inc. 3,300,000 5.20 11/04/98 3,300,000
Concrete Company 2,475,000 5.25 11/05/98 2,475,000
Health Midwest Ventures Group, Inc. 8,050,000 5.30 11/04/98 8,050,000
Illinois Housing Development Revenue Bond 14,345,000 5.48 11/01/98 14,345,000
KinderCare Learning Centers, Inc. 4,000,000 5.29 11/04/98 4,000,000
Kings Glen Apartments LLC 3,325,000 5.25 11/05/98 3,325,000
Mississippi Business Finance Corporation Industrial
Development - GE Plastics Project 2,500,000 5.36 11/01/98 2,500,000
Mississippi Business Finance Corporation Industrial
Development - Morton International, Inc. 14,500,000 5.48 11/01/98 14,500,000
Montgomery County, Pennsylvania Industrial Development
Authority Revenue 3,165,000 5.30 11/04/98 3,165,000
New Jersey Economic Development Authority Economic Development
Revenue - MSNBC/CNBC 8,800,000 5.36 11/01/98 8,800,000
New Jersey Sports & Exposition Authority Sports Complex
Subordinated Refunding Revenue 21,275,000 5.48 11/01/98 21,275,000
Radiation Oncology Partners LLP 2,915,000 5.25 11/05/98 2,915,000
South Carolina Jobs - Economic Development Authority Health
Facilities Revenue 3,000,000 5.70 11/05/98 3,000,000
Stanislaus County, California Pension Obligations 9,655,000 5.48 11/01/98 9,655,000
8
<PAGE>
- -----------------------------------------------------------------------------------------------------------------------
=======================================================================================================================
STRONG MONEY MARKET FUND (continued)
=======================================================================================================================
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- -----------------------------------------------------------------------------------------------------------------------
Thayer Properties LLC $ 3,455,000 5.25% 11/05/98 $ 3,455,000
Tifton Mall, Inc. 3,800,000 5.25 11/05/98 3,800,000
Virginia Housing Development Authority Multi-Family Housing
Revenue 1,980,000 5.48 11/01/98 1,980,000
WLB, LLC 2,000,000 5.25 11/05/98 2,000,000
- ----------------------------------------------------------------------------------------------------------------------
TOTAL TAXABLE VARIABLE RATE PUT BONDS 128,800,000
- ----------------------------------------------------------------------------------------------------------------------
UNITED STATES GOVERNMENT AND AGENCY ISSUES 3.9%
Federal Home Loan Bank Notes 27,575,000 5.01 10/27/99 27,572,422
23,500,000 5.03 10/29/99 23,500,000
Federal Home Loan Mortgage Corporation (c) 14,000,000 5.03 11/05/99 13,998,600
Student Loan Marketing Association Floating Rate Notes 10,000,000 4.38 2/08/99 10,000,000
- ----------------------------------------------------------------------------------------------------------------------
TOTAL UNITED STATES GOVERNMENT AND AGENCY ISSUES 75,071,022
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES 100.9% 1,941,637,971
Other Assets and Liabilities, Net (0.9%) (17,813,885)
- ----------------------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $1,923,824,086
======================================================================================================================
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.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
October 31, 1998
STRONG MONEY
MARKET FUND
--------------
ASSETS:
Investments in Securities, at Amortized Cost $1,941,637,971
Interest Receivable 4,529,817
Other Assets 125,548
--------------
Total Assets 1,946,293,336
LIABILITIES:
Payable for Securities Purchased 13,998,600
Payable for Fund Shares Redeemed 85,242
Dividends Payable 8,364,072
Accrued Operating Expenses and Other Liabilities 21,336
--------------
Total Liabilities 22,469,250
--------------
NET ASSETS $1,923,824,086
==============
NET ASSETS CONSIST OF:
Capital Stock (par value and paid in capital) $1,923,824,086
==============
Capital Shares Outstanding (Unlimited Number Authorized) 1,923,824,086
NET ASSET VALUE PER SHARE $1.00
=====
See Notes to Financial Statements.
9
<PAGE>
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended October 31, 1998
STRONG MONEY
MARKET FUND
------------
INTEREST INCOME $106,786,512
EXPENSES:
Investment Advisory Fees 9,389,083
Custodian Fees 53,976
Shareholder Servicing Costs 4,749,829
Reports to Shareholders 959,291
Banking Charges 1,209,859
Other 209,850
------------
Total Expenses before Waivers 16,571,888
Voluntary Expense Waivers by Advisor (7,433,179)
------------
Expenses, Net 9,138,709
------------
NET INVESTMENT INCOME AND NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 97,647,803
============
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
STRONG MONEY MARKET FUND
-------------------------------------
Year Ended Year Ended
October 31, 1998 October 31, 1997
---------------- ----------------
OPERATIONS:
Net Investment Income $ 97,647,803 $ 99,257,747
Net Realized Loss on Investments -- (14,443,753)
-------------- --------------
Increase in Net Assets Resulting from
Operations 97,647,803 84,813,994
DISTRIBUTIONS:
From Net Investment Income (97,647,803) (99,257,747)
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold 3,195,384,907 3,261,358,218
Proceeds from Reinvestment of Distributions 93,464,902 94,201,065
Payment for Shares Redeemed (3,203,403,721) (3,466,442,965)
-------------- --------------
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 85,446,088 (110,883,682)
CAPITAL CONTRIBUTION (NOTE 4) -- 14,443,753
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 85,446,088 (110,883,682)
NET ASSETS:
Beginning of Year 1,838,377,998 1,949,261,680
-------------- --------------
End of Year $1,923,824,086 $1,838,377,998
============== ==============
TRANSACTIONS IN SHARES OF THE FUND:
Sold 3,195,384,907 3,261,358,218
Issued in Reinvestment of Distributions 93,464,902 94,201,065
Redeemed (3,203,403,721) (3,466,442,965)
------------- -------------
Net Increase (Decrease) in Shares of
the Fund 85,446,088 (110,883,682)
============= =============
See Notes to Financial Statements.
10
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
October 31, 1998
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 fair value. Amortized cost for federal income tax and
financial reporting purposes is the same.
The Fund owns certain investment securities which are restricted as to
resale. These securities are valued by the Fund after giving due
consideration to pertinent factors, including recent private sales, market
conditions and the issuer's financial performance. The Fund generally
bears the costs, if any, associated with the disposition of restricted
securities. Aggregate cost and fair value of these restricted securities
at October 31, 1998 were $736,957,504 and $742,947,846, respectively,
representing 38.6% of the net assets of the Fund. Of these securities,
which are restricted from resale, 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 -- The
Fund intends 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. Based on the terms of the Advisory Agreement, advisory
fees will be waived by the Advisor if the Fund's operating expenses exceed 2%
of the average daily net assets of the Fund. In addition, the Fund's Advisor
may voluntarily waive certain expenses at their discretion. 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 October 31, 1998, other shareholder
servicing expenses paid to the Advisor, and unaffiliated directors' fees,
excluding the effects of waivers and reimbursements, for the year then ended
were $12,642, $71,810, and $20,187, 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
- ----------------------------------------------------------------------------------------------------------------
STRONG MONEY MARKET FUND
- ----------------------------------------------------------------------------------------------------------------
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>
Oct. 31, 1998 $1.00 $0.05 -- $0.05 ($0.05) ($0.05) -- $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(b) 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
</TABLE>
Ratios and Supplemental Data
---------------------------------------------------------------
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 Absorptions Net Assets
Oct. 31, 1998 +5.3% $1,924 0.5% 0.9% 5.2%
Oct. 31, 1997 +5.3%(c) 1,838 0.5% 0.9% 5.2%
Oct. 31, 1996 +5.4% 1,949 0.4% 0.8% 5.3%
Oct. 31, 1995(b) +5.2% 1,934 0.0%* 0.7%* 6.1%*
Dec. 31, 1994 +4.0% 541 0.6% 0.9% 4.0%
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
(b) In 1995, the Fund changed its fiscal year end from December to October.
Total return is not annualized.
(c) 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.
See Notes to Financial Statements.
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Directors of the
Strong Money Market Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Strong Money Market Fund, Inc. at
October 31, 1998, the results of its operations, the changes in its net assets
and the financial highlights for the periods indicated, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at October 31, 1998 by
correspondence with the custodian and broker, provide a reasonable basis for the
opinion expressed above.
PricewaterhouseCoopers LLP
Milwaukee, Wisconsin
January 6, 1998
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
Dana J. Russart, 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
INDEPENDENT ACCOUNTANTS
PriceWaterhouseCoopers LLP
100 East Wisconsin Avenue, Milwaukee, Wisconsin 53202
LEGAL COUNSEL
Godfrey & Kahn, S.C.
780 North Water Street, Milwaukee, Wisconsin 53202
<PAGE>
For a prospectus containing more complete information, including management fees
and expenses, please call 1-800-368-1030. Please read it carefully before
investing or sending money. This report does not constitute an offer for the
sale of securities. Strong Funds are offered for sale by prospectus only.
[PICTURE OF TELEPHONE]
To order a free prospectus kit,
CALL 1-800-368-1030.
To learn more about our funds,
discuss an existing account,
or conduct a transaction,
CALL 1-800-368-3863.
--------------------
If you are a
Financial Professional,
CALL 1-800-368-1683
[PICTURE OF STRONG WEB SITE ON COMPUTER]
Strong On-line
www.strong-funds.com
[STRONG LOGO]
STRONG FUNDS
P.O. Box 2936 o Milwaukee, Wisconsin 53201
Strong Funds Distributors, Inc. 9779K98 AMON
