<PAGE>
[STRONG LOGO]
THE STRONG CASH
MANAGEMENT FUNDS
- ----------------------------------------------------------------------
ANNUAL REPORT o FEBRUARY 28, 1999
THE STRONG ADVANTAGE FUND
THE STRONG MUNICIPAL ADVANTAGE FUND
THE STRONG HERITAGE MONEY FUND
THE STRONG INVESTORS MONEY FUND
THE STRONG MONEY MARKET FUND
THE STRONG MUNICIPAL MONEY MARKET FUND
[PICTURE OF STRONG FUNDS BUILDING]
<PAGE>
LETTER FROM THE CHAIRMAN
Dear Strong Investor,
As I review this past year, I can't help but conclude that we are living in
one of the most remarkable eras in modern history. In many ways, it is a Golden
Age of prosperity, with constantly improving living standards, virtually full
employment, and enormous cultural vitality.
Our golden era is primarily driven by the spirit of capitalism, which has
resulted in real economic growth of better than 3%, negligible inflation, and
the lowest unemployment rates in a quarter of a century. Things have rarely
looked so good. My advice: Enjoy it, but remember that good times have a way of
disappearing. Almost overnight.
Not everything in the world is coming up roses. As the fighting in Kosovo
demonstrates, conflict still looms large in the world. Kosovo illustrates just
how delicate the balance is between individual nations and their economies. And
it serves as a constant reminder that everything in life--economies included--is
cyclical.
While the U.S. market has been strong, not every security has shared in the
good times. What we are experiencing today--to borrow a Wall Street phrase--is a
two-tiered market. That is, a market with big differences between the "have" and
"have not" stocks. Close to 70% of stocks out there are still down 20% or more
from their tops, while a precious small percentage are near their historical
highs.
In plain English, today's market has one piece that may be over-valued, and
another piece that appears to be undervalued.
A family's investment portfolio has to distinguish between a careful
strategy and just "playing the market." A serious investor needs to realize that
some stock valuations are at extreme highs and that diversification is more
important than ever. In addition to blue chip and other large-cap stocks, fixed
income products (like long-term bonds) are very attractive and provide an
excellent vehicle for diversifying a portfolio.
(And, although currently out of favor with investors, small- and mid-cap
stocks will rise again. If you buy the idea that markets are cyclical, these
stocks could be an excellent place to invest over the next few years).
Likewise, value investing--the art of buying undervalued companies--is also
out of favor. Value stocks have already been through a pretty severe correction,
and by investing in them now, you can help protect yourself when large-cap and
technology stocks retreat.
At Strong, we're in business to help you achieve your financial goals. Our
Strong Advisor program works with shareholders to build a long term investment
program through balance.
The markets are made up of millions of pieces of input--facts, opinions,
trends, tips, dreams, emotions, speculation, and an abundance of good
old-fashioned hunches. There is also a good deal of wisdom built into the
markets. Some of this wisdom gets distorted over the short-term. Long-term,
however, the essential truth of the investment process emerges. Our job is to
help you maneuver through the clutter and emotion in the marketplace and find
that truth.
Give us a call. We're here to help.
/s/ Dick
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THE STRONG CASH
MANAGEMENT FUNDS
-----------------------
ANNUAL REPORT o FEBRUARY 28, 1999
TABLE OF CONTENTS
INVESTMENT REVIEWS
The Strong Advantage Fund ...................................2
The Strong Municipal Advantage Fund .........................4
The Strong Heritage Money Fund ..............................6
The Strong Investors Money Fund .............................8
The Strong Money Market Fund ...............................10
The Strong Municipal Money Market Fund .....................12
NEW! BOND GLOSSARY ...................................................14
FINANCIAL INFORMATION
Schedules of Investments in Securities .....................15
Statements of Assets and Liabilities .......................49
Statements of Operations ...................................50
Statements of Changes in Net Assets ........................51
Notes to Financial Statements ..............................53
FINANCIAL HIGHLIGHTS ............................................56
REPORT OF INDEPENDENT ACCOUNTANTS ...............................60
<PAGE>
===========
THE STRONG ADVANTAGE FUND
- -------------------------------------===========--------------------------------
FUND
HIGHLIGHTS
o The Strong Advantage Fund returned 4.64% for the year ended 2-28-99.
o Since the Fund invests primarily in corporate debt and mortgage-backed
securities, share price was adversely affected by investors' flight to
quality to U.S. government bonds during the August-November period.
o To minimize the impact on share price, our exposure to corporate bonds was
reduced early in 1999. We also positioned the portfolio to benefit from an
overall decline in interest rates.
- ---------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS
As of 2-28-99
1-year 4.64%
3-year 5.95%
5-year 5.82%
Since Inception 7.18%
(on 11-25-88)
- ---------------------------------------
PORTFOLIO
STATISTICS
As of 2-26-99
30-day annualized yield(1) 5.85%
Average effective maturity(2) .9 years
Average quality rating(3) A
PERSPECTIVES
FROM THE MANAGERS
/s/ Jeffrey A. Koch /s/ Thomas Sontag
Jeffrey A. Koch Thomas Sontag
Portfolio Co-manager Portfolio Co-manager
- --------------------------------------------------------------------------------
The past year has been a time of extreme uncertainty in the credit markets. In
response to global economic events the Federal Reserve dramatically lowered
short-term interest rates from 5.50% to 4.75% from late September through
November. We believe this period of easing is largely over, as both the bond and
equity markets have returned to more normal behavior. It is most likely that
short-term interest rates will hold steady as the Federal Reserve balances
recent domestic economic strength with foreign economic weakness. This type of
interest rate environment, coupled with the wide yield spreads that currently
exist in the marketplace, present us with some remarkable investment
opportunities.
A volatile interest rate environment generally has historically had a negative
impact on the prices of mortgage-backed bonds. To take advantage of their
attractive yields, the Fund purchased some mortgages at depressed prices. The
bonds purchased by the Fund typically have very short average lives. For
example, the Fund purchased Residential Asset Securitization Trust 1998-A5 class
A1 on January 29, 1999. This is a AAA-rated bond, backed by residential mortgage
loans similar to your home mortgage. As with any mortgage security, assumptions
need to be made with respect to the refinancing rate of the underlying mortgage
loans. Using very conservative assumptions, we believe this bond should yield
approximately 6.00% with an average life of about 1.25 years. This appears to be
quite an opportunity in a short, AAA bond at a time when the 1-year Treasury
bond yields 4.50%.
------------------------------------
THE LAST QUARTER
OF THE YEAR
MARKED THE BEGINNINGS OF
A RETURN TO
NORMALCY IN THE
CREDIT MARKETS.
------------------------------------
- --------------------------------------------------------------------------------
From time to time, the Fund's advisor has waived its management fee and/or
absorbed Fund expenses, which has resulted in higher returns and without these
waivers the rankings may have been lower.
1 Yield is annualized for the 30 days ended 2-26-99, is historical, and will
vary.
2 The Fund's average effective maturity includes the effect of futures and
when-issued securities.
3 For purposes of this average rating, the Fund's short-term debt obligations
have been assigned a long-term rating by the Advisor.
2
<PAGE>
In addition, we are always looking for corporate bonds that offer attractive
yields with minimal price volatility. Our staff carefully researches the credit
profile of each issue we purchase, looking for companies with an improving
credit trend. An example of a successful corporate bond investment is the
Mohegan Tribal Gaming Authority 13.5% First Mortgage Notes due 11-15-02. At the
company's discretion, as of 11-15-99, this issue could be redeemed earlier than
11-15-02. After reviewing the company's improving credit profile, we concluded
that the bonds were likely to be retired at the earliest possible date, given
the high 13.5% coupon. At various times over the past year, we purchased these
bonds at yields in excess of 7.0%, and they were ultimately retired early in
February of 1999 with the issuer having to pay a premium.
We believe that the relatively high yields on the types of securities that the
Fund owns, combined with the relatively low yields available in money market
funds, make this an opportune time to be invested in the Strong Advantage Fund.
We're also pleased to announce that Thomas Sontag has assumed the co-management
responsibilities of Lyle J. Fitterer, who left the Fund earlier in the year.
Thank you for your continued confidence in our investment strategy.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 11-25-88 to 2-28-99
[GRAPH]
Lipper Ultra
THE STRONG 1-Year Short Obligation
ADVANTAGE FUND Treasury Bill* Average*
10-88 10,000 10,000 10,000
12-88 10,103 10,039 10,079
12-90 11,784 12,036 11,872
12-92 14,135 13,720 13,317
12-94 15,793 14,621 14,304
12-96 18,112 16,698 16,134
12-98 20,205 18,763 17,989
2-99 20,383 18,856 18,097
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with similar investments in the
Salomon Brothers 1-Year Treasury Benchmark-on-the-Run Index ("1-Year Treasury
Bill") and the Lipper Ultra Short Obligation Average. Results include the
reinvestment of all dividends and capital gains distributions. Performance is
historical and does not represent future results. Investment returns and
principal value will vary, and you may have a gain or loss when you sell shares.
To equalize the time periods, the indexes' performance was prorated for the
month of November 1988.
- --------------------------------------------------------------------------------
* The Salomon Brothers 1-Year Treasury Benchmark-on-the-Run Index ("1-Year
Treasury Bill") is an unmanaged index generally representative of the
average yield on One-Year Treasury Bills. The Lipper Ultra Short Obligation
Average represents funds that invest at least 65% of their assets in
investment-grade debt issues, or better, and maintain a portfolio
dollar-weighted average maturity between 91 days and 365 days. Source of
the Salomon index data is Standard & Poor's Micropal. Source of the Lipper
index data is Lipper Inc.
YOUR FUND'S
APPROACH
THE STRONG ADVANTAGE FUND INVESTS PRIMARILY IN ULTRA SHORT-TERM,
INVESTMENT-GRADE DEBT OBLIGATIONS. THE FUND HAS THE ABILITY TO INVEST A MAXIMUM
OF 25% OF ITS ASSETS IN BB BONDS. THE FUND SEEKS TO MAXIMIZE CURRENT INCOME
WHILE MAINTAINING A VERY LOW DEGREE OF SHARE-PRICE FLUCTUATION. IN ORDER TO
MINIMIZE PRICE VARIABILITY, THE PORTFOLIO WILL NORMALLY HAVE AN AVERAGE
EFFECTIVE MATURITY EQUAL TO ONE YEAR OR LESS.
- --------------------------------------------------------------------------------
MARKET
HIGHLIGHTS
o Interest rates on 1-year Treasury notes were unusually volatile during the
year ended 2-28-99, ranging from a high of 5.48% to a low of 3.85%--and
finishing the year at 4.85%.
o As is typical in a volatile or uncertain environment, investors shunned
corporate debt and mortgage-backed securities, causing their prices to
decline.
o The last quarter of the year marked the beginnings of a return to normalcy
in the credit markets as investors bought up underpriced corporate bonds
and mortgage-backed securities, which shielded them from the price declines
that Treasuries then suffered.
3
<PAGE>
=====================
THE STRONG MUNICIPAL ADVANTAGE FUND
- --------------------------------=====================---------------------------
FUND
HIGHLIGHTS
o For the year ended February 28, 1999, the Fund posted a return of 4.46%.
Its 30-day annualized yield stood at 3.59%. For investors in the 36% tax
bracket, this translates into a taxable equivalent yield of 5.61%.
o The Fund's average portfolio maturity, at 336 days, is very near the
maximum permitted. This continues a long trend for the Fund. Its average
quality rating remains solidly at A.
o Issues subject to the Alternative Minimum Tax continue to play a role in
the portfolio, as we believe their potential benefits outweigh the tax
consequences they pose for some investors.
- ---------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS
As of 2-28-99
1-year 4.46%
3-year 4.86%
Since Inception 4.94%
(on 11-30-95)
- ---------------------------------------
PORTFOLIO
STATISTICS
As of 2-26-99
30-day annualized yield(1) 3.59%
Average effective maturity(2) .9 years
Average quality rating(3) A
PERSPECTIVES
FROM THE MANAGER
/s/ Steven D. Harrop
Steven D. Harrop
Portfolio Manager
- --------------------------------------------------------------------------------
Markets overall have been volatile, with market pressures pushing yields first
higher, then lower. When rates go much lower than their current levels,
investors quickly lose interest--which in turn spurs yields to move higher as
prices move lower. The lack of inflation, a federal deficit under control, and
other external factors should help hold interest rates down. We don't believe
the Federal Reserve will take action to push interest rates in either direction
in the foreseeable future.
In this environment, we're continuing to work with the investment strategies
that have helped this fund to outperform in recent years. We've continued to
emphasize credit quality in the portfolio, though we also selectively use
non-investment-grade securities (currently 3% of assets) to enhance yield
potential. We manage risk through rigorous securities research.
About one-fourth of the Fund's assets are invested in bonds that are not rated
by an outside bond-rating agency, but have been judged by our in-house analysts
to be of investment grade. We'd like to discuss our use of nonrated issues and
our in-house analytical talent, because we believe they are important factors
adding value to your investment.
We don't believe that bonds rated by a third party always offer more security
than unrated issues of similar quality. First, it costs money to
------------------------------------
WE'VE CONTINUED
TO EMPHASIZE
CREDIT QUALITY IN
THE PORTFOLIO, AND
WE MANAGE RISK
THROUGH RIGOROUS
SECURITIES RESEARCH.
------------------------------------
- --------------------------------------------------------------------------------
From time to time, the Fund's advisor has waived its management fee and/or
absorbed Fund expenses, which has resulted in higher returns and without these
waivers the rankings may have been lower.
1 Yield is annualized for the 30 days ended 2-26-99, is historical, and will
vary. The Fund's Advisor has temporarily waived its management fee of 0.01%
and absorbed expenses of 0.04%. Otherwise, current yield would have been
3.54% and returns would have been lower.
2 The Fund's average effective maturity includes the effect of when-issued
securities.
4
<PAGE>
have a bond rated by an agency. This cuts into the yield a bond pays,
particularly for smaller issues. Also, because many investors look only at rated
issues, these bonds tend to trade more frequently. That means their prices
change more readily in response to market conditions, offering less opportunity
to add value through careful research.
Certainly, rated bonds offer many advantages. There is a benefit to having an
independent party offer a determination of quality, and these issues are also
more liquid. Rated issues do make up the core of our portfolio. Nonetheless, we
will continue to make judicious use of the opportunities unrated issues offer,
backed by our solid, up-to-date in-house research. In the past 12 months, the
Fund's NAV has fluctuated by only $0.02--suggesting the market has agreed with
our analysts' assessments of the quality of our holdings.
We don't anticipate making significant changes to our investment approach over
the next several months, but as always we will monitor conditions carefully and,
should a change appear warranted, take appropriate steps.
Thank you for your investment in the Strong Municipal Advantage Fund. We're
pleased you've chosen us to help you pursue your important financial goals.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 11-30-95 to 2-28-99
[GRAPH]
THE STRONG Lehman Brothers Lipper Short
MUNICIPAL Municipal 1 Year Municipal Debt
ADVANTAGE FUND Bond Index* Funds Index*
11-95 10,000 10,000 10,000
12-95 10,086 10,038 10,041
6-96 10,272 10,226 10,155
12-96 10,577 10,474 10,416
6-97 10,831 10,701 10,637
12-97 11,117 10,960 10,918
6-98 11,360 11,200 11,139
12-98 11,626 11,479 11,418
2-99 11,695 11,585 11,493
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with similar investments in the
Lehman Brothers Municipal 1 Year Bond Index and the Lipper Short Municipal Debt
Funds Index. Results include the reinvestment of all dividends and capital gains
distributions. Performance is historical and does not represent future results.
Investment returns and principal value vary, and you may have a gain or loss
when you sell shares.
- --------------------------------------------------------------------------------
3 For purposes of this average rating, the Fund's short-term debt obligations
have been assigned a long-term rating by the Advisor.
* The Lehman Brothers Municipal 1 Year Bond Index is an unmanaged index
generally representative of one-year, tax-exempt bonds. The Lipper Short
Municipal Debt Funds Index is an equally-weighted performance index of the
largest qualifying funds in this Lipper category. Source of the Lehman
index data is Standard & Poor's Micropal. Source of the Lipper index data
is Lipper Inc.
YOUR FUND'S
APPROACH
THE STRONG MUNICIPAL ADVANTAGE FUND SEEKS FEDERALLY TAX-EXEMPT INCOME WITH
A VERY LOW DEGREE OF SHARE-PRICE FLUCTUATION. THE FUND INVESTS PRIMARILY IN
ULTRA-SHORT-TERM, INVESTMENT-GRADE MUNICIPAL OBLIGATIONS, NORMALLY MAINTAINING
AN AVERAGE EFFECTIVE MATURITY OF ONE YEAR OR LESS. WE STRIVE TO MAXIMIZE THE
FEDERALLY TAX-EXEMPT INCOME THIS FUND PAYS WITHIN THE BOUNDS OF ITS MATURITY,
QUALITY, AND DIVERSIFICATION GOALS. UNLIKE MONEY MARKET FUNDS, THE FUND DOES
ALLOW FOR A SMALL DEGREE OF SHARE-PRICE FLUCTUATION IN ORDER TO PURSUE HIGHER
YIELDS AND RETURNS.
OUR INVESTMENT APPROACH FOCUSES ON SELECTION OF INDIVIDUAL SECURITIES,
DRIVEN BY BOND-BY-BOND RESEARCH. MACROECONOMIC ANALYSIS ALSO PLAYS AN IMPORTANT
ROLE IN SHAPING THE PORTFOLIO.
- --------------------------------------------------------------------------------
MARKET
HIGHLIGHTS
o The Lehman Brothers Municipal 1 Year Bond Index returned 4.79% for the year
ended February 28, 1999, while the Lipper Short Municipal Debt Funds Index
returned 4.44% for the same period.*
o Interest rates generally declined over the period, with demand for
shorter-term municipal issues running high and supply tight. This is
reflected in the Fund's yield, though we were able to reduce the impact of
declining yields through careful issue selection.
o Declining yields led many issuers to pay off their obligations early--also
known as prerefunding. This increased the number of prerefunded
issues--which have an effective credit quality of AAA--in the portfolio.
5
<PAGE>
================
THE STRONG HERITAGE MONEY FUND
- -----------------------------------================-----------------------------
FUND
HIGHLIGHTS
o As the Fund approaches the close of its fourth year, we are proud to have
accumulated a record of consistently superior performance.
o We held a longer-than-neutral average maturity in the portfolio in
anticipation of the drop in interest rates.
o The Fund continued to emphasize asset-backed commercial paper while
avoiding securities related to Japanese banks, due to downgrade concerns.
- ---------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS
As of 2-28-99
1-year 5.31%
3-year 5.53%
Since Inception 5.63%
(on 6-29-95)
- ---------------------------------------
YIELD
SUMMARY(1)
As of 2-26-99
7-day current yield 4.65%
7-day effective yield 4.76%
Average maturity 77 days
PERSPECTIVES
FROM THE MANAGER
/s/ Jay N. Mueller
Jay N. Mueller
Portfolio Manager
- --------------------------------------------------------------------------------
Interest rates fell significantly over the last year, with most of the drop
coming 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 about 6% a year ago to around
5.60% at the end of February 1999. Yields on money market instruments also fell,
with three-month commercial paper yields dropping about 0.70% over the last
year. This drop was roughly in line with the three quarters of a percent cut in
the Fed Funds rate which was engineered by the monetary authorities. Money
market fund yields reflected these interest rate declines.
The Federal Open Market Committee made its first cut on September 29, 1998,
lowering the official Fed Funds target to 5.25% from 5.50%. A second 0.25% cut
came in mid-October, and a third in November. Monetary policy has been stable
since that third step down, and given the strength of the U.S. economy, the
likelihood of a further rate cut in the near term is low.
Maintaining a longer-than-neutral average maturity increases a portfolio's
sensitivity to changes in interest rates. We did that over the last several
------------------------------------
YIELDS ON MONEY
MARKET INSTRUMENTS
FELL, ROUGHLY IN
LINE WITH THE
THREE QUARTERS OF
A PERCENT CUT IN THE
FED FUNDS RATE.
------------------------------------
- --------------------------------------------------------------------------------
From time to time, the Fund's advisor has waived its management fee and/or
absorbed Fund expenses, which has resulted in higher returns and without these
waivers the rankings may have been lower.
1 Yields are annualized for the 7-day period ended 2-26-99. Effective yields
reflect the compounding of income. Yields and rankings are historical and
do not represent future results. Yields will fluctuate. The Fund's Advisor
temporarily waived 0.14% in management fees and absorbed 0.06% in expenses
for the Fund. Otherwise, the Fund's current yield would have been 4.45%,
and its effective yield would have been 4.55%.
6
<PAGE>
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 to
"lock up" a higher yield for a longer period. Though additional Fed rate cuts
may be well into the future, we believe the chance of a reversal in monetary
policy toward higher interest rate targets is remote, given the very low level
of inflation in the U.S. economy. Accordingly, we are continuing to target a
longer-than-neutral average maturity.
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
anticipate that the financial crisis of 1998 will recede, and we will consider
returning to these sectors in selected issues.
We appreciate your confidence and will continue to strive to meet your
investment needs.
3-MONTH TREASURY BILL YIELDS
As of 2-28-99
2-98 5.31%
3-98 5.12%
4-98 4.97%
5-98 5.01%
6-98 5.08%
7-98 5.07%
8-98 4.82%
9-98 4.36%
10-98 4.32%
11-98 4.48%
12-98 4.45%
1-99 4.45%
2-99 4.67%
- --------------------------------------------------------------------------------
2 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
WE MANAGE THE STRONG HERITAGE MONEY MARKET FUND TO PROVIDE A COMPETITIVE
YIELD WHILE MAINTAINING A SHARE PRICE OF ONE DOLLAR.(2) THE FUND'S LOWER THAN
TYPICAL EXPENSE RATIO MEANS INVESTORS USUALLY ENJOY A SUPERIOR YIELD.
WE DO A CAREFUL TOP-DOWN EVALUATION OF ECONOMIC CONDITIONS BEFORE CHOOSING
INDIVIDUAL SECURITIES, CONSIDERING THE PACE OF ECONOMIC GROWTH, INFLATIONARY
TRENDS, THE PATH OF FISCAL AND MONETARY POLICY, AND GLOBAL ECONOMIC CONDITIONS.
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 12 months as the Asian economic
crisis led to lower inflation and easier monetary policy in the United
States.
o The Federal Reserve responded to the threat of a potential "credit crunch"
in the U.S. economy by cutting short-term rates three times between
September and November 1998.
o At the end of the fiscal year, financial markets had returned to a more
optimistic outlook on the world economy, with equity markets recovering
from their autumn lows.
7
<PAGE>
=================
THE STRONG INVESTORS MONEY FUND
- ----------------------------------=================-----------------------------
FUND
HIGHLIGHTS
o We held a longer-than-neutral average maturity in the Strong Investors
Money Fund portfolio in anticipation of the drop in the Fed Funds rate.
o The Fund continued to emphasize asset-backed commercial paper to pursue
higher yields while maintaining high quality.
o We avoided securities related to Japanese banks due to down-grade concerns.
- ---------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS
As of 2-28-99
1-year 5.65%
Since Inception 5.63%
(on 1-31-98)
- ---------------------------------------
YIELD
SUMMARY(1)
As of 2-26-99
7-day current yield 5.01%
7-day effective yield 5.14%
Average maturity 84 days
PERSPECTIVES
FROM THE MANAGER
/s/ Jay N. Mueller
Jay N. Mueller
Portfolio Manager
- --------------------------------------------------------------------------------
Interest rates fell significantly over the last year, with most of the drop
coming 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 about 6% a year ago to around
5.60% at the end of February 1999. Yields on money market instruments also fell,
with three-month commercial paper yields dropping about 0.70% over the last
year. This drop was roughly in line with the three quarters of a percent cut in
the Fed Funds rate which was engineered by the monetary authorities. Money
market fund yields reflected these interest rate declines.
The Federal Open Market Committee made its first cut on September 29, 1998,
lowering the official Fed Funds target to 5.25% from 5.50%. A second 0.25% cut
came in mid-October, and a third in November. Monetary policy has been stable
since that third step down, and given the strength of the U.S. economy, the
likelihood of a further rate cut in the near term is low.
Maintaining a longer-than-neutral average maturity increases a portfolio's
sensitivity to changes in interest rates. We did that over the last several
months, thereby benefiting from the drop in rates. The Fund invested in debt
------------------------------------
THE FUND
DE-EMPHASIZED
FINANCIAL- AND
BROKERAGE-RELATED
ISSUES THAT COULD BE
DOWNGRADED IF
GLOBAL FINANCIAL
TURMOIL CONTINUES
TO REDUCE LIQUIDITY.
------------------------------------
- --------------------------------------------------------------------------------
From time to time, the Fund's advisor has waived its management fee and/or
absorbed Fund expenses, which has resulted in higher returns and without these
waivers the rankings may have been lower.
1 Yields are annualized for the 7-day period ended 2-26-99. Effective yields
reflect the compounding of income. Yields and rankings are historical and
do not represent future results. Yields will fluctuate. The Fund's Advisor
temporarily waived 0.50% in management fees and absorbed 0.35% in expenses
for the Fund. Otherwise, the Fund's current yield would have been 4.16%,
and its effective yield would have been 4.25%.
8
<PAGE>
in the slightly longer maturity, three- to six-month sector of the yield curve
to "lock up" a higher yield for a longer period. Though additional Fed rate cuts
may be well into the future, we believe the chance of a reversal in monetary
policy toward higher interest rate targets is remote, given the very low level
of inflation in the U.S. economy. Accordingly, we are continuing to target a
longer-than-neutral average maturity.
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
anticipate that the financial crisis of 1998 will recede, and we will consider
returning to these sectors in selected issues.
We appreciate your confidence and will continue to strive to meet your
investment needs.
3-MONTH TREASURY BILL YIELDS
As of 2-28-99
2-98 5.31%
3-98 5.12%
4-98 4.97%
5-98 5.01%
6-98 5.08%
7-98 5.07%
8-98 4.82%
9-98 4.36%
10-98 4.32%
11-98 4.48%
12-98 4.45%
1-99 4.45%
2-99 4.67%
- --------------------------------------------------------------------------------
2 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 INVESTORS MONEY FUND IS MANAGED TO PROVIDE COMPETITIVE YIELD
WHILE MAINTAINING A SHARE PRICE OF ONE DOLLAR.(2) 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 12 months as the Asian economic
crisis led to lower inflation and easier monetary policy in the United
States.
o The Federal Reserve responded to the threat of a potential "credit crunch"
in the U.S. economy by cutting short-term rates three times between
September and November 1998.
o At the end of the fiscal year, financial markets had returned to a more
optimistic outlook on the world economy, with equity markets recovering
from their autumn lows.
9
<PAGE>
==============
THE STRONG MONEY MARKET FUND
- ------------------------------------==============------------------------------
FUND
HIGHLIGHTS
o We held a longer-than-neutral average maturity in the portfolio in order to
take advantage of the anticipated drop in interest rates.
o The Fund continued to emphasize asset-backed commercial paper to pursue
higher yields while maintaining high quality.
o We avoided securities related to Japanese banks due to down-grade concerns.
- ---------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS
As of 2-28-99
1-year 5.09%
5-year 5.27%
10-year 5.53%
Since Inception 5.89%
(on 10-22-85)
- ---------------------------------------
YIELD
SUMMARY(1)
As of 2-26-99
7-day current yield 4.38%
7-day effective yield 4.47%
Average maturity 77 days
- ---------------------------------------
PERSPECTIVES
FROM THE MANAGER
/s/ Jay N. Mueller
Jay N. Mueller
Portfolio Manager
- --------------------------------------------------------------------------------
While short term rates have fallen since the Fund's last report on October 31,
1998, longer-term rates have risen as the "flight to quality" trade which had
driven down Treasury yields was unwound. Very strong U.S. economic growth and
resilience in the stock market have led bond investors to conclude that the
threat to the global financial system sparked last summer by the Russian debt
crisis has dissipated.
After dropping its Fed Funds target rate twice in the September--October period,
the Federal Open Market Committee elected to make a third rate cut in
mid-November 1998, lowering the official Fed Funds target to 4.75%. Monetary
policy has been stable since that third step down, and given the strength of the
U.S. economy the likelihood of a further rate cut in the near term is low.
Indeed, the possibility of a rate increase is now being discussed as U.S. growth
exceeds expectations, further stretching already tight labor markets. We believe
that the odds are against a hike in rates any time soon, as inflation remains
quiet and strains in the global financial fabric remain worrisome.
Maintaining a longer-than-neutral average maturity increases a portfolio's
sensitivity to changes in interest rates. We did that over the last several
------------------------------------
GIVEN OUR
EXPECTATION OF STABLE
SHORT TERM RATES, WE
ARE COMFORTABLE
CONTINUING TO TARGET
A LONGER-THAN-NEUTRAL
AVERAGE MATURITY.
------------------------------------
- --------------------------------------------------------------------------------
From time to time, the Fund's advisor has waived its management fee and/or
absorbed Fund expenses, which has resulted in higher returns and without these
waivers the rankings may have been lower.
1 Yields are annualized for the 7-day period ended 2-26-99. Effective yields
reflect the compounding of income. Yields and rankings are historical and
do not represent future results. Yields will fluctuate. The Fund's Advisor
temporarily absorbed 0.32% in expenses for the Fund. Otherwise, the Fund's
current yield would have been 4.06%, and its effective yield would have
been 4.14%.
10
<PAGE>
months, thereby benefiting from the drop in short term rates. Given our
expectation of stable short term rates, we are comfortable continuing to target
a longer-than-neutral average maturity.
In the last four months 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 anticipate that the financial crisis of 1998 will recede, and we
will consider returning to these sectors in selected issues.
We appreciate your confidence and will continue to strive to meet your
investment needs.
3-MONTH TREASURY BILL YIELDS
As of 2-28-99
2-98 5.31%
3-98 5.12%
4-98 4.97%
5-98 5.01%
6-98 5.08%
7-98 5.07%
8-98 4.82%
9-98 4.36%
10-98 4.32%
11-98 4.48%
12-98 4.45%
1-99 4.45%
2-99 4.67%
- --------------------------------------------------------------------------------
2 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.(2) 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 Short-term rates fell sharply over the last 12 months as the Asian economic
crisis led to lower inflation and easier monetary policy in the United
States.
o The Federal Reserve responded to the threat of a potential "credit crunch"
in the U.S. economy by cutting short term rates three times between
September and November 1998.
o At the end of the fiscal year, financial markets had returned to a more
optimistic outlook on the world economy, with equity markets recovering
from their autumn lows.
11
<PAGE>
========================
THE STRONG MUNICIPAL MONEY MARKET FUND
- -------------------------------========================-------------------------
FUND
HIGHLIGHTS
o As of February 26, 1999, the Fund's 7-day current yield was 2.95%. Its
7-day effective yield--which reflects compounding--was 2.99%. For investors
in the 36% tax bracket, that figure translates into a taxable equivalent
yield of 4.67%.
o The Fund's average maturity as of February 26 was 38 days, significantly
shorter than its level six months ago.
o The Fund is very liquid, with 80% of assets now in issues which can be
redeemed in seven days or less.
- ---------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS
As of 2-28-99
1-year 3.44%
3-year 3.52%
5-year 3.56%
10-year 4.04%
Since Inception 4.21%
(on 10-23-86)
- ---------------------------------------
YIELD
SUMMARY(1)
As of 2-26-99
7-day current yield 2.95%
7-day effective yield 2.99%
Average maturity 38 days
- ---------------------------------------
PERSPECTIVES
FROM THE MANAGER
/s/ Steven D. Harrop
Steven D. Harrop
Portfolio Manager
- --------------------------------------------------------------------------------
The one change of note in our management of this Fund has been the shortening of
its average maturity in the second half of the fiscal year. The Fund's average
maturity stood at 46 days at the beginning of the 12-month period and 48 days at
its midpoint, but now rests at just 38 days.
Our approach to market conditions accounts for this change. In late summer and
early autumn, rates on issues with maturities of six months to one year went
into freefall. Many market watchers thought this trend would continue for some
time--a sentiment that drove yields on these issues still lower. Rates on
six-month to one-year issues finally went so low, in fact, that we believed it
no longer made sense to have them in the portfolio. The decline in the Fund's
maturity is a result of our holding back on these relatively longer-term issues
in favor of daily and weekly issues.
This strategy contributed to the Fund's outperformance in late 1998, as rates on
the shorter paper were better than the rates on those longer-term issues.
Approximately 80% of the Fund's assets are invested in daily and weekly issues,
making the Fund very liquid. We're now willing to take advantage of
------------------------------------
WE'RE CONTINUING
TO WORK WITH
THE INVESTMENT
STRATEGIES THAT
HAVE HELPED THIS
FUND TO OUTPERFORM
IN RECENT YEARS.
------------------------------------
- --------------------------------------------------------------------------------
From time to time, the Fund's advisor has waived its management fee and/or
absorbed Fund expenses, which has resulted in higher returns and without these
waivers the rankings may have been lower.
1 Yields are annualized for the 7 days ended 2-26-99. Effective yields
reflect the compounding of income. Yields and rankings are historical and
do not represent future results. Yields will fluctuate.
12
<PAGE>
opportunities to buy slightly longer maturity securities again, but only when
they offer attractive relative yields.
For the foreseeable future, we anticipate a continuation of the usual seasonal
fluctuations in municipal money market rates, but no marked change in their
direction over the long term. We don't believe the Federal Reserve will take
action to influence rates anytime soon.
In this environment, we're continuing to work with the investment strategies
that have helped this fund to outperform in recent years. In addition to
watching macroeconomic factors, we manage risk through rigorous securities
research. We also continue to invest in private-activity bonds whose income may
be subject to the Alternative Minimum Tax, or AMT, in order to give shareholders
access to the full spectrum of municipal issues.
We don't anticipate making significant changes to our investment approach over
the next several months, but as always we will monitor conditions carefully and,
should a change appear warranted, take appropriate steps.
Thank you for your investment in the Strong Municipal Money Market Fund. We look
forward to helping you pursue your important financial goals.
EQUIVALENT TAXABLE YIELDS
As of 2-26-99
YOUR TAX-EXEMPT
EFFECTIVE YIELD OF
MARGINAL 2.99% IS EQUIVALENT
JOINT RETURN SINGLE RETURN TAX RATE TO A TAXABLE YIELD OF:
- --------------------------------------------------------------------------------
$43,051-104,050 $25,751-62,450 28.0% 4.15%
- --------------------------------------------------------------------------------
$104,051-158,550 $62,451-130,250 31.0% 4.33%
- --------------------------------------------------------------------------------
$158,551-283,150 $130,251-283,150 36.0% 4.67%
- --------------------------------------------------------------------------------
Over $283,150 Over $283,150 39.6% 4.95%
- --------------------------------------------------------------------------------
The chart reflects 1999 marginal federal tax rates before limitations and
phase-outs. Individuals with adjusted gross income in excess of $126,600 should
consult their tax advisor to determine their actual 1999 marginal tax rate. The
Fund's income may be subject to state and local taxes and, depending on your tax
status, the Alternative Minimum Tax.
- --------------------------------------------------------------------------------
2 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 MUNICIPAL MONEY MARKET FUND SEEKS FEDERALLY TAX-EXEMPT CURRENT
INCOME, A STABLE SHARE PRICE OF ONE DOLLAR, AND DAILY LIQUIDITY.(2) THE FUND
INVESTS IN HIGH-QUALITY, SHORT-TERM MUNICIPAL SECURITIES THAT PRESENT MINIMAL
CREDIT RISK. WE STRIVE TO MAXIMIZE THE FEDERALLY TAX-EXEMPT INCOME THIS FUND
PAYS WITHIN THE BOUNDS OF ITS MATURITY, QUALITY, AND DIVERSIFICATION GOALS.
OUR INVESTMENT APPROACH FOCUSES ON SELECTION OF INDIVIDUAL SECURITIES,
DRIVEN BY BOND-BY-BOND RESEARCH. MACROECONOMIC ANALYSIS ALSO PLAYS AN IMPORTANT
ROLE IN SHAPING THE PORTFOLIO.
- --------------------------------------------------------------------------------
MARKET
HIGHLIGHTS
o Interest rates, and the yields paid by municipal money market securities,
generally fell over the course of the year. Yields on six-month to one-year
maturity issues fell particularly sharply in the autumn.
o Demand for shorter-term municipal issues ran high, and supplies were tight.
o Seasonal factors occasionally drove money market rates up, but only
temporarily.
13
<PAGE>
- --------------------------------------------------------------------------------
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.
14
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES FEBRUARY 28, 1999
- --------------------------------------------------------------------------------
================================================================================
STRONG ADVANTAGE FUND
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Corporate Bonds 41.3%
Advance Bank Australia Floating Rate
Subordinated Notes, 5.9684%, Due 3/14/06 $ 15,000,000 $ 14,925,000
Allied Waste North America, Inc. Senior Notes,
7.375%, Due 1/01/04 16,000,000 16,240,000
Blackstone Hotel Acquisitions Company Debt
Unit (Medium Term Structured Enhanced
Return Trusts 1998), Series R-38, 6.1944%, Due
6/30/03 (Acquired 7/30/98; Cost $26,000,000) (b) 26,000,000 25,837,500
CF Cable TV, Inc. Senior Secured Second Priority
Notes, 11.625%, Due 2/15/05 5,000,000 5,525,000
CMS Energy Corporation Notes, Series B, 7.375%,
Due 11/15/00 10,050,000 10,130,551
Caesars World, Inc. Senior Subordinated
Debentures, 8.875%, Due 8/15/02 1,700,000 1,700,000
Call-Net Enterprises, Inc. Senior Discount Notes,
Zero %, Due 12/01/04 (Rate Reset Effective
12/01/99) 6,965,000 6,930,175
Cendant Corporation Notes, 7.50%, Due 12/01/00 25,000,000 25,348,425
Central Fidelity Capital Trust I Floating Rate
Notes, Series A, 6.0302%, Due 4/15/27 7,500,000 7,601,498
Chase Manhattan Corporation Floating Rate
Notes, 5.375%, Due 12/30/09 30,920,000 30,262,950
Citicorp Floating Rate Notes:
Series W, 5.1875%, Due 11/27/35 10,000,000 9,000,000
Series X, 5.10%, Due 11/27/35 10,000,000 8,900,000
DLJ Leveraged Loan Fund LLC/DLJ Leveraged
Loan Corporation Senior Secured Floating
Rate Notes, Series 1A, Class A2, 6.0506%, Due
3/15/05 (Acquired 8/07/98; Cost $7,000,000) (b) 7,000,000 6,818,000
Deeptech International Senior Notes, 12.00%,
Due 12/15/00 8,100,000 8,748,000
Delta Air Lines, Inc. Pass-Thru Trust Certificates,
Series 1993-A2, 10.50%, Due 4/30/16 11,601,000 14,640,404
Dime Bancorp, Inc. Notes, 6.375%, Due 1/30/01 15,000,000 14,911,575
Dual Drilling Company Senior Subordinated Notes,
9.875%, Due 1/15/04 18,290,000 19,295,950
EOP Operating LP Floating Rate Term Loan,
5.80%, Due 8/15/00 25,000,000 24,750,000
Empress Entertainment Inc. Senior Subordinated
Notes, 8.125%, Due 7/01/06 25,200,000 25,389,000
First Maryland Capital I Variable Rate
Subordinated Capital Income Securities,
6.0302%, Due 1/15/27 19,500,000 19,736,964
GS Escrow Corporation Floating Rate Senior
Notes, 5.9697%, Due 8/01/03 113,000,000 110,629,373
HRPT Properties Trust Floating Rate Notes,
5.6575%, Due 7/09/07 (Remarketing Date
7/09/99) 37,830,000 37,599,994
HSB Capital I Floating Rate Securities, Series A,
5.9402%, Due 7/15/27 9,000,000 8,613,657
Halyard CBO I, Ltd./Halyard CBO Corporation
Senior Secured Floating Rate Notes, Series 1A,
Class A, 5.8941%, Due 3/24/10
(Acquired 3/12/98-7/14/98; Cost $38,641,237) (b) 38,700,000 37,751,850
Healthsouth Corporation Senior Subordinated
Notes, 9.50%, Due 4/01/01 20,685,000 21,279,694
Huntington Capital I Variable Rate Capital Income
Securities, 5.6697%, Due 2/01/27 18,500,000 18,136,549
ITT Corporation Notes, 6.25%, Due 11/15/00 25,000,000 24,270,100
Imperial Capital Trust I Guaranteed Capital
Securities, 9.98%, Due 12/31/26 3,300,000 3,311,170
Lyondell Petrochemical Company Guaranteed
Term Loan, Tranche D, 6.9391%, Due 6/30/00 12,307,692 11,784,615
Mashantucket Western Pequot Tribe Special
Revenue Bonds/Interest Rate Swap, 6.91%,
Due 9/01/12 (Acquired 9/16/97;
Cost $30,000,000) (b) 30,000,000 28,973,700
Mercantile Capital Trust I Floating Rate Pass-Thru
Securities, 5.8197%, Due 2/01/27 10,000,000 9,908,050
Merrill Lynch Collateralized Bond Obligations:
Series 1996-C-1, 5.5603%, Due 7/07/06 (Acquired
3/12/98; Cost $8,013,600) (b) 8,000,000 7,800,000
Series 1996-C-2, 5.4209%, Due 11/07/06 (Acquired
3/12/98; Cost $7,000,000) (b) 7,000,000 6,825,000
Mohegan Tribal Gaming Authority Senior Notes,
8.125%, Due 1/01/06 (Acquired 2/24/99; Cost
$8,950,000) (b) (f) 8,950,000 9,028,312
NBD Bancorp, Inc. Subordinated Floating Rate
Notes, 5.5625%, Due 12/18/05 24,530,000 24,599,714
NTC Capital Trust II Floating Rate Capital
Securities, 5.6202%, Due 4/15/27 13,805,000 13,629,842
NWA Trust Structured Enhanced Return Trusts
1998, 7.9856%, Due 4/15/11 (Acquired 3/16/98
- 4/06/98; Cost $25,400,000) (b) 25,000,000 22,250,000
National Commerce Capital Trust Floating Rate
Pass-Thru Securities, 6.0561%, Due 4/01/27 15,000,000 14,674,755
National Westminster Bank Floating Rate Notes,
5.80%, Due 9/29/49 34,500,000 32,430,000
Niagara Mohawk Power Corporation Senior Notes:
Series B, 7.00%, Due 10/01/00 6,000,000 6,047,610
Series C, 7.125%, Due 7/01/01 20,000,000 20,260,900
Nordbanken AB Subordinated Floating Rate
Medium Term Yankee Bonds, 5.7184%,
Due 3/29/49 18,000,000 17,275,320
Okobank Subordinated Step-Up Perpetual Floating
Rate Notes, 6.5103%, Due 10/29/49 550,000 550,000
Pepsi Bottling Holdings, Inc. Notes, 5.375%,
Due 2/17/04 (Acquired 2/03/99;
Cost $24,903,000) (b) 25,000,000 24,422,525
Restructured Asset Variable Rate Certificates
Enhanced Returns, Series 1998-C-9-5, 6.4506%,
Due 6/15/00 (Acquired 9/14/98;
Cost $20,000,000) (b) 20,000,000 19,786,000
Restructured Asset Securities Enhanced Returns
Floating Rate Notes, Series 1998-C-10-1, 6.2561%,
Due 6/18/01 (Acquired 9/25/98;
Cost $13,500,000) (b) 13,500,000 13,585,739
Salomon Brothers, Inc. Medium Term Floating
Rate Notes/Interest Rate Swap, 4.00%,
Due 9/30/03 4,400,000 4,359,168
Santa Fe Energy Resources, Inc. Senior
Subordinated Debentures, 11.00%, Due 5/15/04 37,195,000 38,775,788
Skandinaviska Enskilda Banken Subordinated
Floating Rate Medium Term Yankee Bonds,
6.25%, Due 3/29/49 4,000,000 3,934,600
Skandinaviska Enskilda Banken Variable Rate
Subordinated Yankee Notes, 6.50%,
Due 12/29/49 (Acquired 5/28/98 - 8/19/98;
Cost $19,900,825) (b) 20,000,000 18,961,260
Southdown, Inc. Senior Subordinated Notes,
Series B, 10.00%, Due 3/01/06 12,937,000 14,618,810
Spintab AB Floating Rate Subordinated Yankee
Notes, 5.8827%, Due 12/29/49 (Acquired 11/21/97;
Cost $50,000,000) (b) 50,000,000 50,312,100
Star Capital Trust I Floating Rate Securities,
5.9856%, Due 6/15/27 5,000,000 4,969,795
Stop & Shop Companies, Inc. Senior Subordinated
Notes, 9.75%, Due 2/01/02 5,000,000 5,460,825
SunTrust Capital III Floating Rate Notes, 5.8706%,
Due 3/15/28 23,000,000 22,482,500
Swedbank Floating Rate Debt Unit (Medium Term
Structured Enhanced Return Trusts 1996):
Series R-34, 5.944%, Due 11/10/02
(Acquired 5/23/96; Cost $25,000,000)(b) 25,000,000 24,075,000
Series R-35, 5.85%, Due 11/10/02
(Acquired 10/16/96; Cost $20,000,000)(b) 20,000,000 19,260,000
15
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) FEBRUARY 28, 1999
- --------------------------------------------------------------------------------
================================================================================
STRONG ADVANTAGE FUND (continued)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
TKR Cable I, Inc. Senior Debentures, 10.50%,
Due 10/30/07 $20,450,000 $ 22,091,971
Tele-Communications, Inc. Senior Notes, 9.65%,
Due 10/01/03 13,590,000 14,716,380
Texas-New Mexico Power Company Secured
Debentures, 10.75%, Due 9/15/03 8,000,000 8,475,328
Union Bank of Norway Variable Rate Bonds,
7.35%, Due 12/31/49 (Acquired 7/06/98;
Cost $29,715,720) (b) 29,000,000 29,132,240
Union Bank of Norway Subordinated Floating
Rate Medium Term Yankee Notes, 5.3208%,
Due 4/24/08 20,000,000 19,300,000
- --------------------------------------------------------------------------------
Total Corporate Bonds (Cost $1,157,080,967) 1,143,041,226
- --------------------------------------------------------------------------------
Non-Agency Mortgage & Asset-Backed
Securities 34.7%
AFC Mortgage Loan Trust Variable Rate
Asset-Backed Certificates, Series 1994-1,
Class 2A-1, 7.6385%, Due 6/25/25 1,048,553 1,035,326
Airplanes Trust 1998 Floating Rate Refinancing
Pass-Thru Certificates, Series 1R, Class B, 5.6875%,
Due 3/15/19 37,277,436 36,438,694
BCF LLC Mortgage Pass-Thru Certificates, Series
1997-R2, Class 3-A1, 7.00%, Due 12/25/35
Acquired 6/16/98; Cost $5,266,030) (b) 5,230,073 5,230,073
C-BASS ABS LLC Variable Rate Asset-Backed
Securities, Series 1998-2, Class A1, 6.1599%,
Due 7/25/38 (Acquired 6/22/98;
Cost $16,433,422) (b) 16,530,982 16,350,818
CORE Limited/Interest Rate Swap, Series 1998-1X,
Class B2, 4.338%, Due 1/16/06 (Acquired 7/27/98;
Cost $14,044,000) (b) 14,044,000 13,615,511
CWMBS, Inc. Mortgage Pass-Thru Certificates,
Series 1998-A5, Class A-1, 6.75%, Due 5/25/28 17,841,274 17,915,226
CWMBS, Inc. Pass-Thru Certificates, Series 1998-A6,
Class I-A-7, 6.75%, Due 7/25/28 20,189,631 20,271,096
Cargill Lease Receivables Trust Senior Lease
Backed Certificates, Series 1996-A, Class A-2,
6.43%, Due 12/20/05 5,011,497 5,060,058
Chase Mortgage Finance Corporation Mortgage
Pass-Thru Certificates, Series 1990-G, Class A-Z1,
9.50%, Due 12/25/21 880,051 896,965
Chase Mortgage Finance Corporation Variable Rate
Mortgage Pass-Thru Certificates, Series 1992-3:
Class B7, 7.7806%, Due 10/28/23 1,013,684 1,012,416
Class B8, 7.7806%, Due 10/28/23 2,030,049 2,027,511
Citicorp Mortgage Securities, Inc. Adjustable Rate
Real Estate Mortgage Investment Conduit
Pass-Thru Certificates, Series 1992-7, Class 10,
6.8650%, Due 3/25/22 3,529,839 3,514,149
Citicorp Mortgage Securities, Inc. Real Estate
Mortgage Investment Conduit Pass-Thru
Certificates, Series 1992-10:
Class B, 8.00%, Due 6/25/22 (Acquired 1/22/99;
Cost $10,517,302) (b) 10,357,091 10,444,142
Class M, 8.00%, Due 6/25/22 1,688,180 1,694,807
Commercial Mortgage Acceptance Corporation
Variable Rate Pass-Thru Certificates, Series
1996-C1, Class A, 6.7151%, Due 12/25/20
(Acquired 9/04/98; Cost $31,331,661)(b) 31,341,455 31,263,101
ContiSecurities Residual Corporation
ContiMortgage Net Interest Margin Notes, Series
1997-A, 7.23%, Due 7/16/28 (Acquired 9/18/97;
Cost $4,069,194) (b) 4,069,194 4,065,369
DLJ Mortgage Acceptance Corporation Variable
Rate Mortgage Pass-Thru Certificates:
Series 1990-2, Class A, 7.0535%, Due 1/25/22 5,352,465 5,431,130
Series 1991-3, Class A1, 6.8007%, Due 2/20/21 710,820 716,425
EQCC Home Equity Loan Trust Variable Rate
Asset-Backed Notes, Series 1993-4, Class A,
5.725%, Due 12/15/08 10,138,371 10,084,892
Empire Funding Home Loan Owner Trust Home
Loan Asset-Backed Notes, Series 1997-4, Class
A-3, 7.11%, Due 7/25/14 2,000,000 2,000,310
Equipment Pass-Thru Investment Certificates
Trust Floating Rate Senior Certificates,
Series 1996-1:
Class A, 6.8125%, Due 9/25/09 (Acquired 6/14/96;
Cost $4,750,000) (b) 4,750,000 4,751,425
Class B, 7.1563%, Due 9/25/09 (Acquired 7/01/96;
Cost $5,225,000) (b) 5,225,000 5,225,000
Class C, 10.8125%, Due 9/25/09 (Acquired 6/28/96;
Cost $4,167,845) (b) 4,106,251 4,116,927
The Equitable Life Assurance Society of the
United States Collateralized Floating Rate Notes,
Series D-2, 5.9856%, Due 5/15/03
(Acquired 5/23/96-10/30/97; Cost $12,021,016) (b) 12,000,000 11,730,000
The Equitable Life Assurance Society of the
United States Floating Rate Notes, Series 174,
Class A2, 5.2956%, Due 5/15/03
(Acquired 1/29/99; Cost $13,924,531) (b) 14,000,000 13,903,820
Franchise Finance Corporation of America
Floating Rate Notes, Series 1997-1:
Class D2, 6.04%, Due 6/18/13 (Acquired 6/04/97;
Cost $5,726,000) (b) 5,726,000 5,308,174
Class E2, 6.29%, Due 1/18/14 (Acquired 6/04/97;
Cost $2,290,000) (b) 2,290,000 2,143,646
Financial Asset Securitization, Inc., Series
1997-NAMC2, Class FXA-8, 10.00%, Due 7/25/27 5,940,147 6,085,748
FirstPlus Home Loan Owner Trust
Asset-Backed Notes:
Series 1996-2, Class A-6, 7.85%, Due 8/20/13 3,428,983 3,469,737
Series 1997-3, Class A-4, 6.80%, Due 3/10/12 15,000,000 15,109,425
Series 1998-2, Class A-2, 6.23%, Due 6/10/10 5,000,000 5,007,675
Series 1998-3, Class A-2, 6.16%, Due 9/10/09 6,771,000 6,778,143
FirstPlus Global Issuance Company/FirstPlus
Global Issuance Corporation Asset-Backed Notes,
Series 1998-3, Class AIO, 5.00%, Due 7/10/00
(Acquired 12/17/98; Cost $3,765,228) (b) 52,159,000 3,243,768
Fund America Investors Corporation Variable Rate
Senior Pass-Thru Certificates, Series 1993-A,
Class A-1, 7.042%, Due 6/25/23 11,966,142 12,339,243
GS Mortgage Securities Corporation II Commercial
Mortgage Floating Rate Pass-Thru Certificates,
Series 1998-GS1, Class D, 5.7356%, Due 12/13/12
(Acquired 5/22/98-7/10/98; Cost $23,992,969) (b) 24,000,000 23,610,000
G3 Mortgage Reinsurance, Ltd. Floating Rate
Mortgage Default Recourse Notes, Series 1,
Class A, 5.9397%, Due 5/25/08
(Acquired 5/08/98 - 5/19/98; Cost $5,513,750) (b) 5,500,000 5,120,170
Glendale Federal Bank Variable Rate Senior
Pass-Thru Mortgage Securities, Series 1990-1,
Class A, 6.7303%, Due 10/25/29 2,376,222 2,385,133
Glendale Federal Bank Variable Rate Mortgage
Pass-Thru Certificates, Series 1990-3, Class A-1,
6.3046%, Due 3/25/30 1,997,821 1,997,731
Great Western Bank, A Federal Savings Bank of
Beverly Hills, Adjustable Rate Mortgage
Pass-Thru Certificates, Series 1988-3, Class A,
6.12%, Due 12/25/17 3,470,860 3,460,153
16
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
STRONG ADVANTAGE FUND (continued)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Green Tree Financial Corporation Manufactured
Senior Subordinated Pass-Thru Certificates,
Series 1995-1, Class A5, 8.40%, Due 6/15/25 $15,000,000 $15,315,525
Greenwich Capital Acceptance, Inc. Variable Rate
Mortgage Pass-Thru Certificates, Series 1991-1,
Class A, 6.8151%, Due 2/25/21
(Acquired 4/18/96-6/23/97; Cost $15,698,683) (b) 15,359,701 15,513,298
Greenwich Capital Trust I, Class A, 6.7651%,
Due 2/15/21 (Acquired 3/04/97; Cost $8,955,753) (b) 8,606,561 8,821,725
Home Savings of America Adjustable Rate
Mortgage Pass-Thru Certificates, Series 14,
Class A, 5.7026%, Due 5/25/27 1,999,378 1,984,383
ICIFC Secured Assets Corporation Mortgage
Pass-Thru Certificates, Series 1997-1,
Class A-7, 7.75%, Due 3/25/28 21,950,000 22,236,904
Kmart CMBS Financing, Inc. Floating Rate
Commercial Mortgage Pass-Thru Certificates,
Series 1997-1, Class D, 6.0388%, Due 3/01/07
(Acquired 2/21/97-10/16/98; Cost $32,480,625) (b) 33,000,000 31,983,435
Malan Mortgage Securities Trust Floating Rate
Commercial Mortgage Pass-Thru Certificates,
Series 1995-1, Class A2A, 5.7381%, Due 8/15/05
(Acquired 2/21/97; Cost $4,010,000) (b) 4,000,000 4,005,000
Master Financial Asset Securitization Trust
Variable Rate Interest Only Asset-Backed Notes,
Series 1997-1, Class IO, 9.00%, Due 5/20/00 26,095,000 3,033,544
Merrill Lynch Credit Corporation Mortgage Loan
Asset-Backed Pass-Thru Floating Rate Notes,
Series 1996-D, Class B, 6.1856%, Due 5/15/25 7,938,000 6,671,651
Merrill Lynch Mortgage Investors, Inc. Senior
Subordinated Variable Rate Pass-Thru
Certificates, Series 1994-A, Class M, 6.0625%,
Due 2/15/19 11,000,000 11,149,231
Merrill Lynch Mortgage Investors, Inc. Variable
Rate Mortgage Pass-Thru Certificates, Series
1994-M1, Class A, 8.3386%, Due 6/25/22 715,532 715,192
Merrill Lynch Mortgage Investors, Inc. Variable
Rate Commercial Mortgage Pass-Thru
Certificates:
Series 97-SD, Class D, 5.70%, Due 4/01/10 15,500,000 14,613,555
Series 97-SD, Class E, 6.00%, Due 4/01/10 2,500,000 2,375,000
Series 1998-H1, Class C, 5.4388%, Due 4/01/11
(Acquired 7/23/98; Cost $2,000,000) (b) 2,000,000 1,986,260
Series 1998-H1, Class D, 5.6388%, Due 4/01/11
(Acquired 7/23/98; Cost $5,813,000) (b) 5,813,000 5,754,870
Series 1998-H1, Class E, 5.9388%, Due 4/01/11
(Acquired 7/23/98; Cost $3,437,686) (b) 3,437,686 3,377,527
Merrill Lynch Home Equity Acceptance, Inc.
Subordinated Variable Rate Mortgage-Backed
Certificates, Series 1994-A, Class A-1, 6.00%,
Due 8/17/23 7,750,473 7,683,896
Merrill Lynch Credit Corporation Senior
Subordinated Variable Rate Mortgage Pass-Thru
Certificates, Series 1995-A, Class A-5, 7.1737%,
Due 6/15/20 7,933,740 8,013,531
Merrill Lynch Credit Corporation Subordinated
Mortgage-Backed Certificates, Series 95-S1,
Class A-1, 6.625%, Due 2/17/24
(Acquired 12/22/97; Cost $4,770,312) (b) 5,000,000 4,700,000
Merrill Lynch Credit Corporation Floating Rate
Pass-Thru Asset-Backed Mortgage Loans,
Series 1996-C, Class B, 6.5625%, Due 9/15/21
(Acquired 5/09/97 - 8/14/98; Cost $4,224,814) (b) 4,850,165 4,162,072
The Money Store, Inc. Securitized Net Interest
Margin Trust 1997-1 Notes, 7.36%, Due 6/20/25
(Acquired 12/23/97; Cost $4,014,931) (b) 4,014,931 3,955,951
Morgan Stanley Capital 1, Inc. Variable Rate
Commercial Mortgage Pass-Thru Certificates,
Series 1995-HF1, Class D, 6.5356%, Due 2/15/05 3,500,000 3,448,585
Morgan Stanley Mortgage Trust Variable Rate
Collateralized Mortgage Obligation, Series 35,
Class 35-2, Interest Only, 8167.25%, Due 4/20/21 20,612 318,046
Nomura Depositor Trust Floating Rate Commercial
Mortgage Pass-Thru Certificates, Series 1998-ST1:
Class A4, 5.8356%, Due 1/15/03 (Acquired
1/30/98 - 2/10/98; Cost $32,021,875) (b) 32,000,000 29,440,000
Class A5, 6.1856%, Due 1/15/03 (Acquired
1/30/98; Cost $6,300,000) (b) 6,300,000 5,638,500
OUC Commercial Mortgage Securities, Inc.
Subordinated Adjustable Rate Mortgage
Securities, Series 1998-1, Class C, 7.2649%, Due
1/27/28 (Acquired 2/12/98; Cost $8,413,224) (b) 8,387,015 8,366,047
Perpetual Savings Bank Variable Rate Mortgage
Pass-Thru Certificates, Series 1991-1, Class B1,
7.311%, Due 6/25/19 (Acquired 9/17/96;
Cost $629,109) (b) 622,591 626,096
Provident CBO I, Ltd./Provident CBO I, Inc. Senior
Secured Floating Rate Bonds, Series 1A, Class A1,
5.8981%, Due 12/09/10 (Acquired 11/12/98;
Cost $7,000,000) (b) 7,000,000 7,000,000
Prudential Home Mortgage Securities Company
Variable Rate Mortgage Pass-Thru Certificates,
Series 1988-1, Class A, 7.1414%, Due 4/25/18 884,667 892,739
Prudential Home Mortgage Securities Company
Mortgage Pass-Thru Certificates, Series 1992-18,
Class M, 8.50%, Due 7/25/22 10,863,345 11,159,040
RTC Adjustable Rate Mortgage Loan Pass-Thru
Certificates, Series 1991-1, Class A-1, 6.3967%,
Due 4/26/21 8,566,320 8,574,373
RTC Variable Rate Mortgage Pass-Thru Certificates,
Series 1995-1, Class M-11, 5.80%, Due 10/25/28 3,786,819 3,793,693
RTC Variable Rate Mortgage Pass-Thru
Securities, Inc.:
Series 1992-C1, Class B, 7.625%, Due 8/25/23 1,000,398 998,207
Series 1992-4, Class B-2, 7.0104%, Due 7/25/28 14,376,615 14,377,372
Series 1992-17, Class A2, 7.3555%, Due 4/25/20 3,171,597 3,162,320
Series 1992-15, Class B-7, 6.2675%, Due 7/25/27 1,000,000 1,001,345
Series 1993-1P, Class A-2, 7.30%, Due 8/25/19
(Acquired 2/05/98; Cost $4,450,546) (b) 4,444,989 4,438,722
Series 1995-1, Class B-5, 6.9045%, Due 10/25/28 13,199,571 13,217,306
Series 1995-1, Class B-11, 6.60%, Due 10/25/28 1,519,341 1,524,097
RTC Mortgage Pass-Thru Securities, Inc.
Commercial Certificates:
Series 1992-C7, Class C, 9.25%, Due 6/25/23 793,361 789,982
Series 1994-C2, Class E, 8.00%, Due 4/25/25 11,931,192 11,933,757
Series 1995-C2, Class B, 6.80%, Due 5/25/27 22,349,711 22,419,666
RTC Variable Rate Mortgage Pass-Thru Securities,
Inc. Multi-Family Certificates, Series 1992-M1,
Class B-1, 6.90%, Due 1/25/20 8,185,823 8,188,156
Repeat Offering Securitization Entity Funding
Number 1, Ltd. Floating Rate Asset-Backed
Notes, Class A5A, 5.6538%, Due 11/29/01
(Acquired 6/01/98; Cost $27,000,000) (b) 27,000,000 26,759,430
Repeat Offering Securitization Entity Funding
Number 2, Ltd. Floating Rate Asset-Backed
Certificates:
Class A5A, 5.5683%, Due 10/28/04
(Acquired 7/14/98; Cost $9,972,266) (b) 10,000,000 9,840,600
Class A6, 6.9183%, Due 10/28/04
(Acquired 5/01/98; Cost $14,821,289) (b) 15,000,000 14,648,400
Residential Funding Mortgage Securities I, Inc.
Mortgage Pass-Thru Certificates, Series
1993-MZ1, Class A-2, 7.47%, Due 3/02/23 17,702,928 17,716,470
17
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) FEBRUARY 28, 1999
- --------------------------------------------------------------------------------
================================================================================
STRONG ADVANTAGE FUND (continued)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Resecuritization Mortgage Trust Certificates,
Series 1998-B, Class A, 5.1894%, Due 4/26/21
(Acquired 11/12/98; Cost $12,976,344) (b) $13,066,174 $ 12,992,742
Residential Accredit Loans, Inc. Mortgage
Pass-Thru Certificates, Series 1997-QS2,
Class A-7, 7.75%, Due 3/25/27 10,400,783 10,582,529
Residential Funding Mortgage Securities II, Inc.
Variable Rate Interest Only Home Equity Loan
Pass-Thru Certificates, Series 1996-HS2, Class A,
1.70%, Due 9/25/12 25,446,404 405,616
Resolution Trust Corporation Floating Rate Bond,
Series 1992-C8, Class A2, 7.0375%, Due 12/25/23 8,667,584 8,686,523
Resolution Trust Corporation Mortgage Pass-Thru
Securities, Inc. Mortgage Pass-Thru Certificates,
Series 92-18P, Class B-5, 7.50%, Due 1/25/21
(Acquired 9/10/97; Cost $681,413) (b) 678,868 679,927
Ryland Mortgage Securities Corporation Variable
Rate Mortgage Participation Securities:
Series 1990-C1, Class A, 6.1089%, Due 10/25/20 38,943,977 38,797,937
Series 1992-3, Class A-2, 7.0104%, Due 6/25/20 8,532,750 8,519,048
Ryland Mortgage Securities Corporation Senior
Mortgage Partnership Variable Rate Securities,
Series 1989-1, Class 1A, Perpetual Savings Bank,
7.3228%, Due 2/25/19 78,019 77,771
Ryland Mortgage Securities Corporation IV
Variable Rate Collateralized Mortgage Bonds,
Series 2, Class 3-A, 11.9163%, Due 6/25/23 537,586 549,596
Sasco Floating Rate Commercial Mortgage Trust
Multiclass Pass-Thru Certificates, Series 1998-C3A:
Class A-1B, 5.6869%, Due 6/25/15
(Acquired 10/23/98; Cost $15,000,000) (b) 15,000,000 15,014,100
Class A2, 5.5169%, Due 6/25/15
(Acquired 10/23/98; Cost $13,721,810) (b) 13,788,399 13,771,164
Salomon Brothers Mortgage Securities VII, Inc.:
Series 1992-4, Class A2, 7.7219%, Due 9/25/22 1,392,186 1,393,028
Series 1996-LB2, Class A-5, 7.25%, Due 10/25/26 6,000,000 6,029,430
Series 1997-HUD1, Class A-2, 7.37%, Due 12/25/30 7,871,000 7,941,603
Salomon Brothers Mortgage Securities VII, Inc.
Asset-Backed Certificates, Series 1997-LB6,
Class A-2, 6.79%, Due 12/25/27 23,642,000 23,740,705
Saxon Mortgage Securities Corporation Mortgage
Partnership Securities, Series 1993-8, Class 1A-1,
7.375%, Due 9/25/23 2,839,894 2,853,369
Sears Mortgage Securities Corporation Variable
Rate Pass-Thru Certificates:
Series 1991-1, Class A-1, 6.011%, Due 7/25/21 21,840,004 21,557,100
Series 1992-21, Class A-2, 7.1323%, Due 12/26/22 830,990 834,027
Series 1992-23, Class A-4, 7.0218%, Due 10/25/22 849,922 835,189
Structured Asset Securities Corporation Mortgage
Pass-Thru Certificates, Series 1996-CFL,
Class A-2A, 7.75%, Due 2/25/28 12,469,395 12,484,981
Structured Asset Securities Corporation Variable
Rate Multiclass Pass-Thru Certificates:
Series 1994-C1, Class A-3, 5.6197%, Due 8/25/26 1,284,745 1,287,000
Series 1995-C4, Class A-2, 5.4897%, Due 6/25/26 1,641,554 1,643,515
Structured Mortgage Trust Commercial
Mortgage-Backed Securities, 7.323%, Due 1/30/06
(Acquired 5/12/98; Cost $14,832,592) (b) 15,000,000 13,739,100
Textron Financial Corporation Receivables Trust
Asset-Backed Notes, Series 1998-A, Class A1,
5.82%, Due 1/15/02 (Acquired 9/23/98;
Cost $12,304,472) (b) 12,305,442 12,294,982
WHP Commercial Mortgage Variable Rate
Pass-Thru Certificates, Series 1995-C1, Class D,
8.60%, Due 7/20/25 (Acquired 9/03/98;
Cost $4,602,501) (b) 4,599,626 4,593,876
Western Federal Savings & Loan Association Marina
Del Rey California Variable Rate Mortgage
Pass-Thru Certificates, Series 1991-4, Class A,
6.999%, Due 7/25/21 4,146,365 4,094,535
- --------------------------------------------------------------------------------
Total Non-Agency Mortgage & Asset-Backed Securities
(Cost $967,568,666) 958,578,829
- --------------------------------------------------------------------------------
United States Government & Agency Issues 11.3%
FHLMC Participation Cerificates:
7.38%, Due 7/01/21 1,502,074 1,551,568
7.50%, Due 8/01/04 20,656,477 21,157,163
8.50%, Due 7/01/21 15,525,247 16,381,929
9.00%, Due 1/01/05 thru 9/01/20 21,002,968 22,329,678
10.00%, Due 3/15/20 15,765,161 16,841,338
10.50%, Due 11/01/20 982,555 1,066,318
10.75%, Due 10/01/00 11,897 12,258
11.00%, Due 10/01/00 thru 9/01/20 2,257,413 2,455,359
11.75%, Due 5/01/11 thru 6/01/11 971,088 1,057,841
12.00%, Due 9/01/11 thru 2/01/15 375,733 413,383
12.25%, Due 7/01/15 553,555 607,030
12.50%, Due 2/01/15 107,505 119,132
FNMA Guaranteed Real Estate Mortgage Investment
Conduit Pass-Thru Certificates:
7.36%, Due 12/01/17 3,265,219 3,326,441
8.00%, Due 4/01/17 thru 3/25/21 39,625,763 41,058,050
8.75%, Due 9/25/20 thru 12/25/20 21,557,949 22,501,874
9.00%, Due 10/01/04 thru 6/01/24 92,884,366 98,644,498
9.50%, Due 12/01/09 thru 3/01/21 12,880,629 13,737,267
9.75%, Due 3/25/20 6,659,255 7,124,894
10.00%, Due 12/01/09 thru 1/01/10 8,735,847 9,490,962
10.50%, Due 8/01/19 7,765,644 8,600,450
13.50%, Due 9/01/14 16,897 19,108
GNMA Guaranteed Pass-Thru Certificates:
9.50%, Due 12/15/17 4,005,645 4,336,446
10.00%, Due 10/20/17 6,868,096 7,630,042
11.00%, Due 8/15/19 11,234,945 12,428,658
13.50%, Due 8/15/14 thru 11/15/14 105,579 122,863
15.00%, Due 5/15/12 thru 9/15/12 29,609 35,195
- --------------------------------------------------------------------------------
Total United States Government & Agency Issues (Cost $310,831,898) 313,049,745
- --------------------------------------------------------------------------------
Preferred Stocks 1.6%
Parmalat Capital Finance 7.5327% Series B 200,000 4,640,000
Pinto Totta International Finance, Ltd. 7.77%
(Acquired 7/24/97; Cost $5,000,000) (b) 5,000 4,431,250
TCI Communications Financing I 8.72% 1,130,000 29,874,375
TCI Communications Financing II Trust 10.00% 200,000 5,487,600
- --------------------------------------------------------------------------------
Total Preferred Stocks (Cost $45,379,822) 44,433,225
- --------------------------------------------------------------------------------
Short-Term Investments (a) 11.0%
INTEREST BEARING, DUE UPON DEMAND 0.0%
General Mills, Inc., 4.54% $ 70,000 70,000
Pitney Bowes Credit Corporation, 4.54% 20,000 20,000
Sara Lee Corporation, 4.54% 95,400 95,400
Wisconsin Electric Power Company, 4.53% 100 100
-----------
185,500
CORPORATE BONDS 9.1%
Amerco Asset-Backed Bonds, 6.65%, Due 10/15/99
(Acquired 1/14/98; Cost $5,008,900) (b) 5,000,000 4,960,100
Bay View Capital Corporation Senior Debentures,
8.42%, Due 6/01/99 (Acquired 10/15/97 - 6/24/98;
Cost $17,212,500) (b) 17,000,000 17,069,258
Lyondell Petrochemical Company Guaranteed Term
Loan, Tranche C, 6.9394%, Due 6/30/99 7,692,308 7,634,615
18
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
STRONG ADVANTAGE FUND (continued)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Merchandise Mart LLC Commercial
Mortgage-Backed Securities, 6.1388%, Due
9/30/99 (Acquired 5/26/98; Cost $24,950,000) (b) $ 25,000,000 $ 24,875,000
Newscorp Overseas, Ltd. Floating Rate Debt
Unit with Swap Agreement (Structured Enhanced
Return Trusts 1995, Series R-27), 6.1806%, Due
6/30/99 (Acquired 6/12/95; Cost $27,120,000) (b) 28,250,000 23,447,500
Niagara Mohawk Power Corporation Senior Notes,
Series A, 6.50%, Due 7/01/99 100,000,000 100,192,900
Time Warner, Inc. Pass-Thru Asset Securities,
4.90%, Due 7/29/99 (Acquired 11/21/97; Cost
$73,062,750) (b) 75,000,000 74,726,025
--------------
252,905,398
NON-AGENCY MORTGAGE & ASSET-BACKED SECURITIES 0.1%
Advanta Mortgage Loan Trust Interest Only
Asset-Backed Certificates, Series 1998-2,
Class A-IO, 5.00%, Due 8/25/99 93,750,000 2,666,250
ContiMortgage Home Equity Loan Trust Interest
Only Pass-Thru Certificates, Series 1997-5,
Class A11, 6.50%, Due 6/15/99 44,547,564 1,253,123
--------------
3,919,373
REPURCHASE AGREEMENTS 1.7%
ABN-AMRO Tri-Party (Dated 2/26/99), 4.75%,
Due 3/01/99 (Proceeds $46,318,327); Collateralized
by: Tennessee Valley Authority Strips and Notes,
SLMA Notes, FNMA Notes and Principal
Strips, FHLMC Bank Bonds, and Federal Farm
Credit Bank Notes (h) 46,300,000 46,300,000
UNITED STATES GOVERNMENT ISSUES 0.1%
United States Treasury Bills,
Due 3/04/99 thru 5/27/99 (c) 1,855,000 1,850,145
- --------------------------------------------------------------------------------
Total Short-Term Investments (Cost $308,356,117) 305,160,416
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Total Investments in Securities (Cost $2,789,217,470) 99.9% 2,764,263,441
Other Assets and Liabilities, Net 0.1% 2,075,322
- --------------------------------------------------------------------------------
Net Assets 100.0% $2,766,338,763
================================================================================
FUTURES
- --------------------------------------------------------------------------------
Underlying Unrealized
Expiration Face Amount Appreciation
Date at Value (Depreciation)
- --------------------------------------------------------------------------------
Purchased:
500 90-Day Eurodollars 4/99 $118,518,750 ($472,500)
Sold:
458 Two-Year U.S. Treasury Notes 6/99 95,815,031 330,784
573 Five-Year U.S. Treasury Notes 6/99 63,585,094 704,882
69 Ten-Year U.S. Treasury Notes 6/99 7,917,750 81,420
SWAPS
- --------------------------------------------------------------------------------
Open interest rate swap contracts at Feb. 28, 1999 consisted of the following:
- --------------------------------------------------------------------------------
Notional Interest Interest
Issuer Amount Sold Bought
- --------------------------------------------------------------------------------
CORE Limited $14,044,000 3 Month Euro 3 Month USD
(Expires 1/16/06) LIBOR + 80BP LIBOR + 78BP
Mashantucket Western 30,000,000 6.91% 3 Month USD
Pequot Tribe LIBOR + 28BP
(Expires 9/01/12)
Salomon Brothers, Inc. 4,400,000 10 Year Constant 3 Month USD
(Expires 9/30/03) Maturity Treasury LIBOR + 30BP
+ 140BP
================================================================================
STRONG MUNICIPAL ADVANTAGE FUND
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Municipal Bonds 32.6%
ALABAMA 0.1%
Washington County, Alabama Board of Education
Municipal Project Lease and Option Agreement
COP, 5.10%, Due 1/31/03 $ 1,205,877 $ 1,205,877
ARIZONA 0.0%
Pima County, Arizona IDA MFHR - Casa Loma
Apartments and Old Farm Project, 9.00%,
Due 1/01/01 175,000 173,906
ARKANSAS 0.2%
Little Rock, Arkansas Collateralized IDR - Lexicon,
Inc. Project, 6.48%, Due 7/01/06 4,185,000 4,196,132
CALIFORNIA 0.7%
California Hospital Revenue - Valley Health System
Refunding and Improvement Project, 5.50%,
Due 5/15/00 740,000 745,550
California PCFA Solid Waste Revenue - Keller
Canyon Landfill Company Project, 6.875%,
Due 11/01/27 4,100,000 4,463,875
Santa Ana, California Community Redevelopment
Refunding, 7.50%, Due 9/01/16 2,000,000 2,084,780
Southern California Public Power Authority Power
Project Revenue 1999 Subordinate Refunding -
Palo Verde Project, 5.00%, Due 7/01/00 (f) 3,300,000 3,382,500
Stanislaus, California Waste-To-Energy Financing
Agency Solid Waste Facility Revenue Refunding -
Ogden Martin System, Inc. Project, 7.625%,
Due 1/01/10 4,090,000 4,276,668
-----------
14,953,373
COLORADO 2.1%
Arapahoe County, Colorado SFMR - IDK Partners I
Trust Pass-Thru Certificates, 5.25%, Due 11/01/19 2,359,262 2,406,447
Central City, Gilpin County, Colorado Excise Tax
Refunding, 5.40%, Due 12/01/00 2,200,000 2,255,000
Denver, Colorado City and County Airport System
Revenue, 7.75%, Due 11/15/21 10,000,000 10,950,000
Denver, Colorado City and County MFHR
Refunding - The Seasons Apartment Project,
5.57%, Due 10/15/08 28,500,000 29,390,625
-----------
45,002,072
CONNECTICUT 0.3%
Connecticut HFA Housing Mortgage Finance
Program:
4.60%, Due 11/15/18 5,000,000 5,012,500
7.30%, Due 11/15/03 135,000 140,400
Norwich, Connecticut Tax-Exempt Equipment
Lease, 6.35%, Due 8/01/01 1,185,848 1,219,941
-----------
6,372,841
DISTRICT OF COLUMBIA 0.5%
District of Columbia Revenue - Georgetown
University Project, 7.25%, Due 4/01/20 10,000,000 10,224,000
FLORIDA 0.2%
Capital Projects Finance Authority Florida Solid
Waste Disposal Revenue Loan, 7.50%,
Due 11/01/18 5,000,000 5,000,000
GEORGIA 0.2%
George L. Smith II Georgia World Congress Center
Authority Revenue Refunding - Domed Stadium
Project, 5.75%, Due 7/01/01 (f) 5,005,000 5,180,175
19
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) FEBRUARY 28, 1999
- --------------------------------------------------------------------------------
================================================================================
STRONG MUNICIPAL ADVANTAGE FUND (continued)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
HAWAII 0.4%
Hawaii Department of Budget and Finance Special
Purpose Revenue - Citizens Utilities Company
Project, 6.66%, Due 11/01/21 $ 8,500,000 $ 9,211,875
IDAHO 0.2%
Boise, Idaho Housing Authority Revenue - Hobbler
Place Project, 5.25%, Due 2/01/02 4,520,000 4,559,550
ILLINOIS 3.3%
Alton, Illinois Hospital Facilities Revenue and
Refunding - St. Anthony's Health Center Project:
5.00%, Due 9/01/01 850,000 865,938
5.15%, Due 9/01/00 1,355,000 1,377,019
Chicago, Illinois O'Hare International Airport
Special Facilities Revenue - American
Airlines, Inc. Project, 7.875%, Due 11/01/25 33,280,000 35,776,000
Chicago, Illinois O'Hare International Airport
Special Facilities Revenue - United Air Lines, Inc.
Project:
8.40%, Due 5/01/18 (Pre-Refunding at $103 on
5/01/99) 4,380,000 4,536,716
8.50%, Due 5/01/18 10,600,000 11,275,750
Eureka, Illinois Educational Facilities Revenue -
Eureka College Project, 5.25%, Due 1/01/01 660,000 660,000
Hodgkins, Illinois GO Tax Allocation, 9.50%,
Due 12/01/09 (Pre-Refunding at $104 on 12/01/01) 2,500,000 2,878,125
Illinois DFA PCR Refunding - Commonwealth
Edison Company Project, 7.25%, Due 6/01/11 7,225,000 7,766,875
Kane, McHenry, Cook and DeKalb Counties, Illinois
Community Unit School District Number 300 GO
Lease Secured COP - School Building Project,
6.90%, Due 12/01/04 3,195,000 3,502,519
Romeoville, Will County, Illinois COP, 7.30%,
Due 12/01/00 2,000,000 2,132,500
-----------
70,771,442
INDIANA 0.4%
East Chicago, Indiana School City COP:
5.10%, Due 7/15/03 3,355,000 3,371,775
5.50%, Due 7/15/02 2,375,000 2,458,125
Huntington, Indiana EDR Refunding - Quanex
Corporation Project, 6.50%, Due 8/01/10 1,665,000 1,719,495
-----------
7,549,395
IOWA 0.1%
Cedar Rapids, Iowa First Mortgage Revenue -
Cottage Grove Place Project, 5.30%, Due 7/01/05 1,910,000 1,910,000
KANSAS 0.4%
Kansas City, Kansas Board of Public Utilities
Master Municipal Lease and Option Agreement,
4.47%, Due 5/01/03 3,848,609 3,829,366
Kansas City, Kansas Residual Revenue Capital
Appreciation, Zero %, Due 5/01/12 1,805,000 661,081
Sedgwick and Shawnee Counties, Kansas SFMR
Mortgage-Backed Securities Program, 4.70%,
Due 12/01/08 3,500,000 3,517,500
-----------
8,007,947
KENTUCKY 1.7%
Kenton County, Kentucky Airport Board Special
Facilities Revenue - Delta Air Lines, Inc. Project,
7.125%, Due 2/01/21 24,980,000 27,009,625
Kentucky EDFA Hospital System Refunding and
Improvement Revenue - Appalachian Regional
Healthcare, Inc. Project:
4.70%, Due 10/01/00 2,085,000 2,113,669
4.85%, Due 10/01/01 2,195,000 2,241,644
5.00%, Due 10/01/02 2,300,000 2,369,000
5.10%, Due 10/01/03 2,165,000 2,240,775
-----------
35,974,713
LOUISIANA 3.9%
East Baton Rouge, Louisiana Mortgage Finance
Authority SFMR Refunding - GNMA and FNMA
Mortgage-Backed Securities Program, 4.60%,
Due 10/01/16 4,000,000 4,025,000
Louisiana Health Education Authority Revenue -
Lambeth House Project, 5.25%, Due 1/01/05 14,875,000 14,875,000
Louisiana Public Facilities Authority Hospital
Revenue and Refunding - Pendleton Memorial
Methodist Hospital Project:
6.75%, Due 6/01/10 (Pre-Refunding at $102 on
6/01/02) 3,060,000 3,375,731
6.75%, Due 6/01/22 2,615,000 2,807,856
Louisiana Public Facilities Authority MFHR -
Whitten Foundation Project, 7.00%, Due 12/01/00 11,665,000 11,767,069
New Orleans, Louisiana Regional Transit Authority
Lease-Purchase Agreements:
Lease M98147, 5.50%, Due 5/01/08 33,322,570 33,572,490
Lease M98159, 5.50%, Due 5/01/08 3,134,450 3,157,958
Ouachita Parish, Louisiana IDB, Inc. Revenue
Refunding - Physicians and Surgeons Medical
Complex Project, 4.80%, Due 8/01/02 3,750,000 3,820,313
St. Charles Parish, Louisiana PCR - Louisiana
Power & Light Company Project, 8.25%,
Due 6/01/14 7,500,000 7,792,500
-----------
85,193,917
MAINE 0.2%
Maine Finance Authority Solid Waste Disposal
Revenue - Boise Cascade Corporation Project,
7.90%, Due 6/01/15 5,000,000 5,281,250
MARYLAND 0.7%
Maryland CDA Department of Housing and
Community Development SFMR, 7.375%,
Due 4/01/26 9,000,000 9,203,850
Maryland Stadium Authority Sports Facilities
Lease Revenue, 7.50%, Due 12/15/10 5,000,000 5,235,700
-----------
14,439,550
MASSACHUSETTS 1.3%
Clipper Caravel Tax-Exempt Certificates Trust
Revenue, 3.75%, Due 10/08/01 23,000,000 22,971,250
Commonwealth of Massachusetts Department of
Revenue Tax-Exempt Master Equipment Lease:
5.085%, Due 10/01/00 1,011,453 1,021,568
5.62%, Due 10/01/01 1,680,330 1,718,137
Massachusetts Health and EFA Competitive
Lease Program - Whitehead Institute for
Biomedical Research Project, 4.698%, Due 5/07/03 2,663,000 2,669,658
Massachusetts Industrial Finance Agency
Industrial Revenue - John T. Spinelli Project,
7.00%, Due 11/01/00 856,798 856,798
-----------
29,237,411
MICHIGAN 0.3%
Detroit, Michigan EDC Resource Recovery Revenue,
7.00%, Due 5/01/01 3,420,000 3,586,725
Koch Financial Corporation Special Purpose Lease
Tax-Exempt Private Municipal Trust Certificates,
4.70%, Due 10/06/03 3,107,000 3,118,651
-----------
6,705,376
MINNESOTA 1.2%
Minneapolis, Minnesota Temporary Parking
Ramp Revenue, 4.75%, Due 6/01/00 5,885,000 5,897,535
Monticello, Minnesota Housing and Redevelopment
Authority Revenue - Temporary Public Project,
4.50%, Due 2/01/01 6,500,000 6,500,000
Plymouth, Minnesota Revenue Refunding - Carlson
Center Project, 7.00%, Due 4/01/12 3,665,000 3,727,452
20
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
STRONG MUNICIPAL ADVANTAGE FUND (continued)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Sartell, Minnesota PCR Refunding - Champion
International Corporation Project, 6.95%,
Due 10/01/12 $ 9,380,000 $10,165,575
-----------
26,290,562
MISSISSIPPI 0.8%
Claiborne County, Mississippi PCR Refunding -
System Energy Resources, Inc. Project, 7.30%,
Due 5/01/25 11,750,000 12,322,813
Jones County, Mississippi Hospital Revenue
Refunding - South Central Regional Medical
Center Project, 5.00%, Due 12/01/03 4,130,000 4,269,388
-----------
16,592,201
MISSOURI 0.0%
Springfield, Missouri Land Clearance
Redevelopment Authority Industrial Revenue -
University Plaza Project, 5.90%, Due 10/01/01 860,000 881,500
NEBRASKA 1.3%
Energy America Gas Supply Revenue - Metropolitan
Utilities District Project, 5.30%, Due 4/01/05 17,488,847 18,057,234
Energy America Gas Supply Revenue - Nebraska
Public Gas Agency Project, 5.10%, Due 10/15/05 6,110,417 6,133,331
Omaha Tribe of Nebraska Public Improvements
Authority GO, 7.50%, Due 12/01/02 2,900,000 2,947,270
-----------
27,137,835
NEVADA 0.1%
Henderson, Nevada Local Improvement Districts
Number T-4, 6.00%, Due 11/01/01 455,000 468,650
Reno-Sparks, Nevada Convention and Visitors
Authority Limited Obligation Refunding, 6.25%,
Due 11/01/01 1,540,000 1,599,675
-----------
2,068,325
NEW YORK 1.2%
Dutchess County, New York Resource Recovery
Agency Solid Waste System Revenue:
4.45%, Due 1/01/01 (f) 1,130,000 1,149,775
4.55%, Due 1/01/02 (f) 1,305,000 1,335,994
4.65%, Due 1/01/03 (f) 1,400,000 1,443,750
4.70%, Due 1/01/04 (f) 1,490,000 1,544,013
New York Medical Care Facilities Finance Agency
Revenue Hospital and Nursing Home Mortgage,
8.00%, Due 2/15/27 4,930,000 5,007,302
New York Mortgage Agency Homeowner Mortgage
Revenue, 4.75%, Due 10/01/21 7,245,000 7,254,056
New York State Energy Research and Development
Authority Electric Facilities Revenue -
Consolidated Edison Company of New York, Inc.
Project, 7.50%, Due 1/01/26 7,525,000 7,805,758
-----------
25,540,648
NORTH CAROLINA 0.1%
Northampton County, North Carolina Industrial
Facilities and PCFA Solid Waste Disposal
Revenue - Champion International Corporation
Project, 8.05%, Due 11/01/04 3,000,000 3,132,840
OHIO 1.3%
Ohio Department of Transportation COP -
Rickenbacker Port Project, 6.125%, Due 4/15/15 415,000 432,297
Ohio HFA Residential Mortgage Revenue -
Mortgage-Backed Securities Program, 4.65%,
Due 9/01/20 17,380,000 17,401,725
Ohio Township, Allegheny County, Pennsylvania
GO, 5.15%, Due 11/15/00 1,785,000 1,834,088
Ohio Water Development Authority PCR
Refunding - Ohio Edison Company Project,
7.625%, Due 7/01/23 4,130,000 4,250,224
Youngstown, Ohio City School District Energy
Conservation Measures, 6.80%, Due 3/15/05 4,035,000 4,352,756
-----------
28,271,090
OKLAHOMA 0.5%
Tulsa, Oklahoma Trustees Municipal Airport
Trust - American Airlines, Inc. Project, 7.375%,
Due 12/01/20 11,000,000 11,742,500
OREGON 0.4%
Clackamas County, Oregon Hospital Facility
Authority Revenue and Refunding - Willamette
View, Inc. Project, 5.40%, Due 11/01/02 1,260,000 1,289,925
Medford, Oregon Municipal Lease-Purchase
Agreement, 5.00%, Due 5/01/03 1,689,450 1,693,674
Multnomah County, Oregon Educational Facilities
Refunding and Revenue - University of Portland
Project, 4.75%, Due 4/01/01 2,940,000 2,995,125
Washington County, Oregon Operations Yard
Facilities Deferred Interest Obligations, Zero %,
Due 6/01/03 4,000,000 3,355,000
-----------
9,333,724
PENNSYLVANIA 1.9%
Lehigh County, Pennsylvania General Purpose
Authority Revenue - KidsPeace Obligated Group
Project:
5.50%, Due 11/01/01 2,125,000 2,138,281
5.50%, Due 11/01/02 2,240,000 2,256,800
5.50%, Due 11/01/03 2,360,000 2,377,700
5.50%, Due 11/01/04 2,500,000 2,521,875
Montgomery County, Pennsylvania IDA First
Mortgage Revenue Refunding - The Meadowood
Corporation Project, 5.15%, Due 12/01/03 1,381,000 1,382,284
Pennsylvania Housing Finance Agency SFMR,
7.75%, Due 10/01/09 4,000,000 4,119,880
Philadelphia, Pennsylvania Airport Revenue
Refunding - Philadelphia Airport System Project,
5.50%, Due 6/15/01 2,000,000 2,080,000
Philadelphia, Pennsylvania Hospitals and Higher
Education Facilities Authority Revenue, 8.375%,
Due 6/01/04 (Pre-Refunding at $102 on 6/01/00) 1,480,000 1,598,400
Philadelphia, Pennsylvania IDA Health Care
Facilities Revenue - Pauls Run Project, 5.125%,
Due 5/15/03 1,950,000 1,954,875
Philadelphia, Pennsylvania Municipal Authority
Equipment Revenue, 5.297%, Due 10/01/04 15,902,178 16,538,265
Scranton, Lackawanna County, Pennsylvania Health
and Welfare Authority Hospital Revenue - Moses
Taylor Hospital Project, 5.25%, Due 7/01/02 4,750,000 4,880,625
-----------
41,848,985
PUERTO RICO 0.2%
Commonwealth of Puerto Rico Tax-Exempt Lease
Certificates, 5.35%, Due 7/15/04 4,603,202 4,804,592
SOUTH CAROLINA 0.5%
Charleston County, South Carolina First Mortgage
Health Facilities Revenue - The Episcopal Church
Home Project, 5.40%, Due 4/01/04 8,100,000 8,160,750
Charleston County, South Carolina Industrial
Revenue Refunding - Coburg Dairy, Inc. Project,
6.875%, Due 10/01/06 1,400,000 1,416,716
Greystone, South Carolina Tax-Exempt Asset
Trust Pass-Thru Certificates, 4.30%, Due 6/20/00 266,360 266,360
-----------
9,843,826
TENNESSEE 0.7%
Tennessee Housing Development Agency -
Homeownership Program, Zero %, Due 7/01/12 27,390,000 14,619,413
21
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) FEBRUARY 28, 1999
- --------------------------------------------------------------------------------
================================================================================
STRONG MUNICIPAL ADVANTAGE FUND (continued)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
TEXAS 2.8%
Alliance Airport Authority, Inc. Texas Special
Facilities Revenue - American Airlines, Inc.
Project, 7.50%, Due 12/01/29 $ 5,000,000 $ 5,343,750
Brazos River Authority Collateralized PCR - Texas
Utilities Electric Company Project, 8.125%,
Due 2/01/20 6,845,000 7,221,133
Dallas-Fort Worth, Texas International Airport
Facilities Improvement Corporation Revenue -
American Airlines, Inc. Project, 7.50%,
Due 11/01/25 16,125,000 17,233,594
Gulf Coast, Texas Waste Disposal Authority Multi-
Modal Interchangeable Rate Revenue - Champion
International Corporation Project, 7.45%,
Due 5/01/26 8,400,000 9,103,500
Houston, Texas Airport System Subordinate Lien
Revenue Refunding:
5.25%, Due 7/01/00 2,230,000 2,282,962
5.25%, Due 7/01/01 2,350,000 2,435,187
Lubbock, Texas HFC SFMR Refunding - GNMA
Mortgage-Backed Securities Program, 7.00%,
Due 12/01/20 5,485,000 5,999,219
Matagorda County, Texas Navigation District
Number One Collateralized PCR - Central Power
and Light Company Project, 7.50%, Due 12/15/14 3,335,000 3,518,425
North Central Texas Health Facilities Development
Corporation Health Facility Development Revenue
EXTRAS - C.C. Young Memorial Home Project,
5.00%, Due 2/15/28 1,575,000 1,583,521
Texas Department of Housing and Community
Affairs Residential Mortgage Revenue, 4.80%,
Due 7/01/18 (f) 5,000,000 5,012,500
-----------
59,733,791
UTAH 0.6%
Eagle Mountain, Utah Gas and Electric Revenue
BAN, 4.875%, Due 9/01/01 2,830,000 2,846,867
Eagle Mountain, Utah Special Improvement
District Number 98-3 Special Assessment, 5.50%,
Due 12/15/08 5,090,000 5,089,644
Salt Lake City, Utah Redevelopment Agency Central
Business District Neighborhood Redevelopment
Tax Increment Revenue Refunding, 4.75%,
Due 10/01/02 4,200,000 4,315,500
-----------
12,252,011
VIRGINIA 0.1%
Arlington County, Virginia COP, 4.458%,
Due 6/01/01 3,130,824 3,142,564
WASHINGTON 0.5%
Grant County, Washington Public Utility District
Number 2 Priest Rapids Hydroelectric Development
Second Series Revenue Refunding:
Series A, 5.00%, Due 1/01/04 (f) 2,500,000 2,621,875
Series B, 5.00%, Due 1/01/04 (f) 1,385,000 1,442,131
Grant County, Washington Public Utility District
Number 2 Wanapum Hydroelectric Development
Second Series Revenue Refunding:
Series A, 5.00%, Due 1/01/04 (f) 1,270,000 1,331,912
Series B, 5.00%, Due 1/01/04 (f) 1,105,000 1,158,869
Skagit and Whatcom Counties, Washington Public
Hospital District Number 304 Revenue and
Refunding - Affiliated Health Services, 4.90%,
Due 12/01/02 2,670,000 2,746,762
Skagit County, Washington Public Hospital District
Number 1 Revenue and Refunding - Affiliated
Health Services, 4.90%, Due 12/01/02 2,015,000 2,072,931
-----------
11,374,480
WEST VIRGINIA 0.1%
Kanawha County, West Virginia County
Commission IDR - Union Carbide Chemicals and
Plastics Company, Inc. Project, 8.00%,
Due 8/01/20 1,930,000 2,053,037
WISCONSIN 0.1%
Lake Como Sanitary District Number 1 BAN, 4.50%,
Due 6/01/00 2,350,000 2,357,496
MULTIPLE STATES 1.0%
Municipal Tax-Exempt Trust Certificates, 4.00%,
Due 3/06/01 22,400,000 22,568,000
- --------------------------------------------------------------------------------
Total Municipal Bonds (Cost $698,420,454) 706,740,222
- --------------------------------------------------------------------------------
Variable Rate Put Bonds 7.5%
ALABAMA 1.5%
West Jefferson Amusement and Public Park
Authority First Mortgage Revenue - Visionland
Alabama Project, 6.00%, Due 2/01/20
(Putable at $100 and Rate Reset
Effective 2/01/02) 32,045,000 31,964,888
ARIZONA 1.0%
Pima County, Arizona IDA MFHR - Casa Loma
Apartments Project, 5.50%, Due 1/01/34
(Putable at $100 and Rate Reset
Effective 1/01/01) 20,865,000 20,838,919
CALIFORNIA 1.2%
Santa Rosa, California Housing Authority MFHR -
Dutton Partners Project, 4.85%, Due 9/01/07
(Mandatory Put at $100 on 9/01/02) 3,000,000 3,005,400
San Bernardino County, California MFHR
Refunding - Casa Del Rio Apartments Project
(Mandatory Put at $100 on 9/25/00):
Phases I and IV, 5.50%, Due 8/25/29 13,010,000 12,993,737
Phases II and III, 5.50%, Due 8/25/29 10,180,000 10,167,275
-----------
26,166,412
COLORADO 0.2%
Colorado Health Facilities Authority Revenue
EXTRAS - Baptist Home Association of the
Rocky Mountains, Inc. Project, 5.75%, Due 8/15/27
(Putable at $100 and Rate Reset Effective 8/15/02) 3,000,000 3,032,460
FLORIDA 0.0%
Florida Housing Finance Agency MFHR - Cypress
Lake Apartment Project, 5.75%, Due 12/01/07
(Mandatory Put at $100 on 12/01/02) 200,000 207,500
GEORGIA 0.1%
Decatur County, Georgia Bainbridge IDA IDR -
John B. Sanfilippo & Son, Inc. Project, 5.375%,
Due 6/01/17 (Mandatory Put at $100 on 6/01/02) 2,935,000 2,942,514
ILLINOIS 1.4%
Chicago, Illinois MFHR - Chicago Beach Apartments
Project, 5.50%, Due 2/01/17 (Putable at $100 and
Rate Reset Effective 2/01/02) 2,900,000 2,910,150
Eureka, Illinois Educational Facilities Revenue -
Eureka College Project, 5.25%, Due 1/01/19
(Putable at $100 and Rate Reset Effective 1/01/01) 3,330,000 3,330,000
22
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
STRONG MUNICIPAL ADVANTAGE FUND (continued)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Illinois Health Facilities Authority Revenue
EXTRAS - Covenant Retirement Communities, Inc.
Project, 5.25%, Due 12/01/22 (Putable at $100 and
Rate Reset Effective 12/01/02) $ 3,500,000 $ 3,631,250
Robbins, Illinois Resource Recovery Revenue
Refunding - Robbins Resource Recovery Partners,
4.90%, Due 10/15/17
(Mandatory Put at $100 on 10/15/02) 20,350,000 20,578,938
-----------
30,450,338
INDIANA 0.4%
Anderson, Indiana MFHR - Cross Lakes Apartments
Project, 5.625%, Due 7/01/33
(Mandatory Put at $100 on 7/01/00) 8,500,000 8,521,250
MARYLAND 0.2%
Maryland Health and Higher EFA
First Mortgage Revenue - Peninsula United
Methodist Homes, Inc. Project, 5.25%, Due
10/01/28 (Putable at $100 and Rate Reset Effective
10/01/03) 3,600,000 3,604,500
NEW JERSEY 0.6%
New Jersey EDA Senior Mortgage Revenue
Refunding EXTRAS - Arbor Glen of Bridgewater
Project, 5.375%, Due 5/15/32 (Putable at $100
and Rate Reset Effective 5/15/04) 13,500,000 13,533,750
PENNSYLVANIA 0.2%
Montgomery County, Pennsylvania IDA First
Mortgage Revenue Refunding EXTRAS - The
Meadowood Corporation Project, 5.50%,
Due 12/01/19 (Putable at $100 and Rate Reset
Effective 12/01/02) 3,000,000 3,004,920
Philadelphia, Pennsylvania IDA Health Care
Facilities Revenue EXTRAS - Paul's Run Project,
5.125%, Due 5/15/28 (Putable at $100 and Rate
Reset Effective 5/15/03) 2,000,000 2,002,500
-----------
5,007,420
SOUTH CAROLINA 0.1%
Charleston County, South Carolina First Mortgage
Health Facilities Revenue - The Episcopal Church
Home Project, 5.30%, Due 4/01/27 (Putable at $100
and Rate Reset Effective 10/01/02) 3,000,000 3,041,250
TENNESSEE 0.1%
Shelby County, Tennessee Health, Educational and
Housing Facility Board Health Care Facilities
Revenue EXTRAS - Kirby Pines Retirement
Community Project, 5.50%, Due 11/15/27
(Putable at $100 and Rate Reset
Effective 11/15/02) 2,450,000 2,474,500
TEXAS 0.3%
Abilene, Texas Health Facilities Development
Corporation - Sears Methodist Retirement System
Obligated Group Project EXTRAS, 5.25%,
Due 11/15/28 (Putable at $100 and Rate Reset
Effective 11/15/03) 6,070,000 6,062,412
Trinity River Authority Refunding - Texas
Industries, Inc. Project, 5.813%, Due 9/01/07
(Putable at $100 and Rate Reset Effective 11/01/01) 385,000 395,587
Trinity River Authority Refunding - Texas
Industries, Inc. Project, Series A, 5.813%,
Due 9/01/07 (Putable at $100 and Rate Reset
Effective 11/01/01) 240,000 246,600
-----------
6,704,599
VIRGINIA 0.2%
Rockingham County, Virginia IDA Residential Care
Facility First Mortgage Revenue - Virginia
Mennonite Retirement Community Project, 5.10%,
Due 4/01/32 (Putable at $100 and Rate Reset
Effective 4/01/03) 4,250,000 4,258,372
- --------------------------------------------------------------------------------
Total Variable Rate Put Bonds (Cost $162,148,826) 162,748,672
- --------------------------------------------------------------------------------
Short-Term Investments (a) 60.7%
MUNICIPAL BONDS 6.4%
ARKANSAS 0.2%
Fayetteville, Arkansas Public Facilities Board
Refunding and Improvement Revenue - Butterfield
Trail Village Project, 9.50%, Due 9/01/14
(Pre-Refunding at $102 on 9/01/99) 3,385,000 3,558,007
CALIFORNIA 0.3%
Vallejo, California BAN - Water Improvement
Project, 4.75%, Due 7/15/99 6,675,000 6,715,651
CONNECTICUT 0.2%
Connecticut Development Authority Airport
Facilities Revenue - Roncari Associates, Inc.
Project, 7.25%, Due 12/01/99 1,884,715 1,894,553
Connecticut Resources Recovery Authority
Revenue - American REF-FUEL Company of
Southeastern Connecticut Project, 5.00%,
Due 11/15/99 3,340,000 3,384,622
-----------
5,279,175
ILLINOIS 1.3%
Alton, Illinois Hospital Facilities Revenue and
Refunding - St. Anthony's Health Center Project,
4.95%, Due 9/01/99 1,400,000 1,408,484
Romeoville, Will County, Illinois COP, 7.30%,
Due 12/01/99 2,250,000 2,320,560
Winnebago and Boone Counties, Illinois Rockford
School District Number 205 Educational Purpose
Tax Anticipation Warrants, 5.40%, Due 10/29/99 24,900,000 25,036,203
-----------
28,765,247
KENTUCKY 0.1%
Kentucky EDFA Hospital System Refunding and
Improvement Revenue - Appalachian Regional
Healthcare, Inc. Project, 4.50%, Due 10/01/99 2,005,000 2,017,471
MAINE 0.1%
Maine Educational Loan Marketing Corporation
Student Loan Revenue Refunding, 6.65%,
Due 11/01/99 2,515,000 2,558,711
MASSACHUSETTS 0.1%
Commonwealth of Massachusetts Department of
Revenue Tax-Exempt Master Equipment Lease,
5.40%, Due 9/30/99 1,609,916 1,624,840
MICHIGAN 0.0%
Pontiac, Michigan Hospital Financing Authority
Hospital Revenue - NOMC Obligation Group
Project, 5.60%, Due 8/01/99 200,000 200,952
NEW JERSEY 1.3%
East Orange, New Jersey TAN, 4.90%, Due 4/27/99 12,000,000 12,032,640
Irvington Township, New Jersey BAN, 5.00%,
Due 6/09/99 2,900,000 2,914,268
Irvington Township, New Jersey TAN, 4.625%,
Due 10/21/99 7,500,000 7,577,700
23
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) FEBRUARY 28, 1999
- --------------------------------------------------------------------------------
================================================================================
STRONG MUNICIPAL ADVANTAGE FUND (continued)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
South Amboy, New Jersey Housing Authority
Housing Revenue - Shore Gate Village Grand
Project, 6.00%, Due 8/15/99 $ 5,265,000 $ 5,279,689
------------
27,804,297
OHIO 1.4%
American Municipal Power Ohio, Inc. BAN -
Distribution General Project, 4.25%,
Due 1/21/00 29,550,000 29,758,623
Cleveland, Ohio City School District Energy
Conservation Improvement GO:
6.53%, Due 3/15/99 610,000 610,659
6.53%, Due 9/15/99 630,000 641,164
------------
31,010,446
OKLAHOMA 0.2%
Oklahoma Industries Authority Hospital BAN -
Deaconess Healthcare Corporation Project,
4.35%, Due 8/01/99 3,500,000 3,517,780
OREGON 0.2%
Portland, Oregon Housing Authority Tax Credit
Notes - Yards at Union Station Project, 5.00%,
Due 7/15/99 2,265,000 2,270,912
Portland, Oregon MFHR - Civic Stadium Housing
Project, 4.60%, Due 8/01/99 2,000,000 2,005,540
------------
4,276,452
PENNSYLVANIA 0.2%
Titusville, Crawford County, Pennsylvania GO,
5.00%, Due 4/15/99 3,500,000 3,507,280
TENNESSEE 0.1%
Sumner County, Tennessee Capital Outlay Notes,
4.05%, Due 6/15/99 3,200,000 3,208,000
TEXAS 0.2%
Falcons Lair, Texas Utility and Reclamation District
COP, 6.25%, Due 10/15/99 4,000,000 4,011,640
WASHINGTON 0.2%
Lynnwood, Snohomish County, Washington Local
Improvement District Number 93-1 BAN, 4.60%,
Due 10/01/99 5,000,000 5,005,800
WISCONSIN 0.3%
Lake Como Sanitary District Number 1 Water
Revenue BAN, 4.35%, Due 6/01/99 7,065,000 7,080,472
------------
Total Municipal Bonds 140,142,221
VARIABLE RATE PUT BONDS 7.2%
ALABAMA 1.6%
Birmingham, Alabama Special Care Facilities
Financing Authority Revenue - Baptist Medical
Centers (Mandatory put at $100 on 11/01/99):
Series A, 3.670%, Due 6/01/28 15,730,000 15,730,000
Series B, 3.470%, Due 9/01/20 20,100,000 20,100,000
------------
35,830,000
ARIZONA 1.1%
Pima County, Arizona IDA SFMR Refunding,
4.390%, Due 3/01/28 (Mandatory Put at $100 on
3/25/99) 15,000,000 15,000,000
Pima County, Arizona IDA SFMR Refunding Draw
Down (Mandatory Put at $100 on 3/25/99):
Class I, 4.391%, Due 7/01/28 6,370,000 6,370,000
Class II, 4.390%, Due 7/01/28 3,330,000 3,330,000
------------
24,700,000
CALIFORNIA 0.2%
Vallejo, California Housing Authority MFMR -
Highlands Apartments Project, 5.00%,
Due 6/01/07 (Mandatory Put at $100 on 6/01/99) 4,585,000 4,596,096
COLORADO 1.3%
Arvada, Colorado MFHR Refunding - Nightingale
Association Project, 6.250%, Due 12/01/18
(Mandatory Put at $100 on 3/24/99) 4,080,000 4,084,504
Denver, Colorado City and County SFMR Refunding
Draw Down, 4.39%, Due 12/01/29
(Mandatory Put at $100 on 3/25/99) 14,100,000 14,100,000
El Paso County, Colorado SFMR Refunding,
4.390%, Due 11/01/29 (Mandatory Put at $100
on 3/25/99) 10,000,000 10,000,000
------------
28,184,504
FLORIDA 0.9%
Escambia County, Florida Escambia Housing
Corporation Housing Revenue - Royal Arms
Project, 7.00%, Due 7/01/17 (Mandatory Put at
$100 on 7/01/99) 9,360,000 9,395,568
Escambia County, Florida Escambia Housing
Corporation Housing Revenue - Wellington Arms
Project, 7.375%, Due 9/01/16
(Mandatory Put at $100 on 9/01/99) 10,650,000 10,745,956
------------
20,141,524
MAINE 0.3%
Maine Finance Authority MFHR - Back Bay Tower
Project, 5.25%, Due 9/01/18
(Mandatory Put at $100 on 9/01/99) 5,870,000 5,905,279
NEVADA 0.9%
Nevada Housing Division MFHR Refunding - Park
Vista Apartments Project, 5.00%, Due 10/01/10
(Mandatory Put at $100 on 3/22/99) 19,500,000 19,500,000
OHIO 0.1%
Lorain County, Ohio IDR - Gilford Instrument
Laboratories, Inc. Project, 5.25%, Due 7/01/14
(Putable at $100 and Rate Reset Effective 7/01/99) 1,000,000 1,006,390
PENNSYLVANIA 0.1%
Chester County, Pennsylvania Health and Education
Facilities Authority Revenue - Barclay Friends
Project, 4.90%, Due 8/01/25
(Mandatory Put at $100 on 8/01/99) 2,500,000 2,514,850
SOUTH DAKOTA 0.4%
Sioux Falls, South Dakota EDR Refunding - City
Centre Hotel Corporation Project, 7.00%,
Due 11/01/16 (Putable at $100 and Rate Reset
Effective 1/01/99) 7,850,070 7,850,070
VIRGINIA 0.1%
Chesapeake, Virginia Redevelopment and Housing
Authority MFHR - Tidewater House LP Project,
4.25%, Due 9/25/31
(Mandatory Put at $100 on 8/31/99) 3,131,000 3,147,782
WISCONSIN 0.2%
Germantown, Wisconsin IDR - Moldmakers Leasing
and Investments LLP Project, 5.00%, Due 12/01/12
(Putable at $100 and Rate Reset Effective 12/01/99) 4,000,000 4,048,560
------------
Total Variable Rate Put Bonds 157,425,055
24
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
STRONG MUNICIPAL ADVANTAGE FUND (continued)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
MUNICIPAL COMMERCIAL PAPER 2.9%
ARIZONA 0.5%
Arizona Industrial Commission Special Fund Tax-
Exempt COP Refunding, 4.25%, Due 3/04/99 $11,300,000 $11,300,000
ARKANSAS 0.2%
Hope, Arkansas Solid Waste Disposal Revenue -
Temple-Inland Forest Products Project, 3.90%,
Due 4/14/99 4,000,000 4,000,000
GEORGIA 0.2%
McDuffie County, Georgia Development Authority
Waste Disposal Revenue - Temple-Inland Forest
Products Project, 3.90%, Due 4/14/99 5,000,000 5,000,000
ILLINOIS 0.8%
Decatur, Illinois Water Revenue - New South Water
Treatment Project, 3.95%, Due 3/16/99 17,100,000 17,100,000
KENTUCKY 0.5%
Maysville, Kentucky Solid Waste Disposal
Facilities Revenue - Inland Container
Corporation Project:
3.90%, Due 4/14/99 10,135,000 10,135,000
3.95%, Due 4/14/99 1,000,000 1,000,000
-----------
11,135,000
TEXAS 0.5%
Angelina and Neches River Authority Texas Solid
Waste Disposal Revenue - Temple Eastex, Inc.
Project, 3.90%, Due 4/14/99 6,000,000 6,000,000
Port Development Corporation Marine Terminal
Refunding Revenue - Mitsui and Company (USA),
Inc. Project, 4.25%, Due 3/04/99 4,400,000 4,400,000
-----------
10,400,000
WISCONSIN 0.2%
Wisconsin Health and EFA Revenue - Alexian
Village Milwaukee, Inc. Project, 3.95%,
Due 3/16/99 4,000,000 4,000,000
-----------
Total Municipal Commercial Paper 62,935,000
TAXABLE MUNICIPAL COMMERCIAL PAPER 0.8%
ALABAMA
Stevenson, Alabama IDB Environmental
Improvement Revenue - The Mead Corporation
Project, 5.35%, Due 3/01/99 17,000,000 17,000,000
ANNUAL PUT BONDS 4.1% (d)
MISSISSIPPI 0.2%
Warren County, Mississippi Solid Waste Disposal
Revenue - International Paper Company
Project, 3.85%, Due 3/01/99 (e) 3,700,000 3,700,000
OHIO 0.1%
Sharonville, Ohio IDR - Ralston Purina Company
Project, 4.25%, Due 12/01/99 (e) 1,000,000 1,000,000
PENNSYLVANIA 1.2%
Clinton County, Pennsylvania IDA Solid Waste
Disposal Revenue - International Paper Company
Project, 3.95%, Due 1/15/00 (e) 25,000,000 25,151,000
SOUTH CAROLINA 0.5%
Georgetown County, South Carolina PCR -
International Paper Company Project, 4.10%,
Due 3/01/99 (e) 11,000,000 11,058,410
TENNESSEE 0.1%
Knox County, Tennessee IDB IDR - Spartan
Food Systems, Inc. Project, 7.50%, Due 12/01/99 1,500,000 1,503,750
Maryville, Tennessee IDB IDR - Spartan
Food Systems, Inc. Project, 7.50%, Due 12/01/99 1,500,000 1,504,395
-----------
3,008,145
TEXAS 2.0%
Brazos River Authority Collateralized PCR
Refunding - Texas Utilities Electric Company
Project, 4.15%, Due 6/18/99 (e) 44,000,000 44,141,680
-----------
Total Annual Put Bonds 88,059,235
SEMI-ANNUAL VARIABLE RATE PUT BONDS 0.3% (d)
ALABAMA 0.2%
Mobile, Alabama IDB PCR Refunding -
International Paper Company Project, 3.90%,
Due 6/01/99 5,100,000 5,106,273
CALIFORNIA 0.1%
Huntington Park, California Redevelopment
Agency IDR - Huntington Park Project, 4.50%,
Due 8/01/99 1,175,000 1,175,000
-----------
Total Semi-Annual Variable Rate Put Bonds 6,281,273
QUARTERLY VARIABLE RATE PUT BONDS 2.4% (d)
OKLAHOMA 0.5%
Oklahoma Industries Authority Hospital
Revenue - Deaconess Health Care Corporation
Project, 4.50%, Due 4/01/99 10,000,000 10,000,000
WASHINGTON 1.9%
Washington Housing Finance Commission SFMR
Refunding:
Series S-1A, 4.50%, Due 3/01/99 420,000 420,000
Series S-2A, 4.60%, Due 3/01/99 675,000 675,000
Series S-4, 4.50%, Due 3/01/99 9,195,000 9,195,000
Series S-6B, 4.40%, Due 3/01/99 3,575,000 3,575,000
Series S-9A, 4.50%, Due 3/01/99 18,760,000 18,760,000
Series S-11A, 4.50%, Due 3/01/99 5,595,000 5,595,000
Series S-B, 4.40%, Due 3/01/99 3,750,000 3,750,000
-----------
41,970,000
-----------
Total Quarterly Variable Rate Put Bonds 51,970,000
MONTHLY VARIABLE RATE PUT BONDS 1.2% (d)
LOUISIANA 0.5%
Calcasieu Parish, Louisiana Memorial Hospital
Service District Hospital Revenue - Lake Charles
Memorial Hospital Project, 4.55%, Due 4/01/99 10,970,000 10,970,000
MASSACHUSETTS 0.5%
Massachusetts Industrial Finance Agency
Revenue - Milling Company Project, 3.87%,
Due 4/01/99 10,000,000 10,000,000
MISSOURI 0.2%
Desloge, Missouri IDA IDR Refunding - National
Healthcorp Project, 4.75%, Due 4/01/99 1,925,000 1,925,000
Dunklin County, Missouri IDA IDR Refunding -
National Healthcorp Project, 4.75%, Due 4/01/99 2,455,000 2,455,000
-----------
4,380,000
-----------
Total Monthly Variable Rate Put Bonds 25,350,000
25
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) FEBRUARY 28, 1999
- --------------------------------------------------------------------------------
================================================================================
STRONG MUNICIPAL ADVANTAGE FUND (continued)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Weekly Variable Rate Put Bonds 31.3% (d)
ALABAMA 0.5%
Birmingham, Alabama IDB IDR - Home Baking
Company, Inc. Project:
Series A, 3.40%, Due 3/08/99 $ 3,230,000 $ 3,230,000
Series B, 3.40%, Due 3/08/99 1,265,000 1,265,000
Grove Hill, Alabama IDB IDR - Hamilton Woods
Veneer Project, 3.75%, Due 3/08/99 4,900,000 4,900,000
Ider, Alabama IDB IDR - Galbreath, Inc. Project,
4.50%, Due 3/08/99 1,235,000 1,235,000
------------
10,630,000
CALIFORNIA 5.5%
Alhambra, California Redevelopment Agency
MFHR - Main Street Plaza Apartments Project,
4.05%, Due 3/08/99 3,200,000 3,200,000
California Statewide Communities Development
Authority MFHR Refunding - Poinsettia
Apartments Project, 4.05%, Due 3/08/99 5,000,000 5,000,000
Fairfield, California IDA IDR - Medical Design
Concepts Project, 4.70%, Due 3/08/99 1,200,000 1,200,000
Grand Terrace, California Community
Redevelopment Agency Multifamily Revenue,
3.25%, Due 3/08/99 27,380,000 27,380,000
Huntington Beach, California MFHR - Huntington
Breakers Project, 4.70%, Due 3/08/99 10,000,000 10,000,000
Los Angeles, California Community Redevelopment
Agency Housing Revenue - Ithaka
Partners III Project, 3.35%, Due 3/08/99 1,670,000 1,670,000
Los Angeles, California Community Redevelopment
Agency MFHR Trusts, 3.25%, Due 3/08/99 11,595,000 11,595,000
Los Angeles, California MFHR - Channel Gateway
Apartments Project, 4.40%, Due 3/08/99 39,100,000 39,100,000
Los Angeles County, California IDA IDR - Fruitland
Associates Project, 4.70%, Due 3/08/99 3,000,000 3,000,000
Orange County, California Apartment Development
Revenue - Park Place Apartments Project, 5.42%,
Due 3/08/99 8,500,000 8,500,000
Pasadena, California Community Development
Commission COP:
Kings Plaza Project, 5.00%, Due 3/08/99 1,205,000 1,205,000
Lake/Washington Neighborhood Shopping
Center Project, 5.00%, Due 3/08/99 3,480,000 3,480,000
Riverside, California MFHR - Spruce Grove Project,
4.50%, Due 3/08/99 3,000,000 3,000,000
------------
118,330,000
COLORADO 0.3%
Arapahoe County, Colorado IDR - Denver JetCenter,
Inc. Project, 4.65%, Due 3/08/99 1,600,000 1,600,000
Fort Collins, Colorado MFHR - The Bull Run
Townhomes Project, 3.35%, Due 3/08/99 3,950,000 3,950,000
Grand Junction, Colorado IDR - Sundstrand
Corporation Project, 4.10%, Due 3/08/99 1,000,000 1,000,000
------------
6,550,000
GEORGIA 0.6%
Cartersville, Georgia IDA IDR - Sekisui Jushi Project,
4.40%, Due 3/08/99 4,300,000 4,300,000
Floyd County, Georgia Development Authority
PCR Refunding - Inland-Rome Project, 3.55%,
Due 3/08/99 4,735,000 4,735,000
Jefferson, Georgia Development Authority IDR -
Sumitomo Plastics America, Inc. Project, 4.25%,
Due 3/08/99 5,000,000 5,000,000
------------
14,035,000
ILLINOIS 2.6%
Illinois DFA IDA - Toyomenka (America), Inc.
Project, 4.90%, Due 3/08/99 2,200,000 2,200,000
Illinois DFA IDR:
Eakas Corporation Project, 4.60%, Due 3/08/99 8,000,000 8,000,000
Miyano Machy USA, Inc. Project, 4.90%, Due
3/08/99 7,250,000 7,250,000
Illinois DFA MFHR Refunding:
Cobbler Square Project, 4.45%, Due 3/08/99 7,400,000 7,400,000
Orleans-Illinois Project, 3.70%, Due 3/08/99 29,020,000 29,020,000
Salem, Illinois IDR - Americana Building
Products Project, 4.05%, Due 3/08/99 2,465,000 2,465,000
------------
56,335,000
INDIANA 0.4%
Madison, Indiana EDR - Arvin Sango, Inc. Project,
4.70%, Due 3/08/99 9,600,000 9,600,000
KANSAS 0.7%
Hays, Kansas Manufacturing Facilities Development
Revenue - Yuasa Exide Battery Corporation Project,
4.95%, Due 3/08/99 9,500,000 9,500,000
Kansas City, Kansas Private Activity Revenue
Refunding - Inland Container Corporation Project,
3.55%, Due 3/08/99 5,200,000 5,200,000
------------
14,700,000
KENTUCKY 0.3%
Hopkinsville, Kentucky IDR - Douglas Autotech
Corporation Project, 4.40%, Due 3/08/99 6,900,000 6,900,000
MINNESOTA 0.3%
Delano, Minnesota IDR - Solar Plastics, Inc. Project,
3.65%, Due 3/08/99 1,960,000 1,960,000
Rochester, Minnesota IDR Refunding - Seneca Foods
Corporation Project, 3.35%, Due 3/08/99 4,675,000 4,675,000
------------
6,635,000
MISSOURI 1.7%
Jefferson County, Missouri IDA Industrial Revenue
Refunding - Festus Manor Nursing Home Project,
3.69%, Due 3/08/99 1,525,000 1,525,000
Missouri Development Finance Board Infrastructure
Facilities Revenue - Kansas City, Missouri
Midtown Redevelopment Project, 4.75%, Due
3/08/99 17,900,000 17,900,000
Missouri IDB IDR - Kawasaki Motors
Manufacturing Company Project, 4.40%,
Due 3/08/99 7,300,000 7,300,000
St. Louis County, Missouri IDA Revenue - Allied
Ring Project, 5.20%, Due 3/08/99 3,275,000 3,275,000
St. Louis, Missouri Port Authority IDR Refunding -
Italgrani USA, Inc. Project, 4.75%, Due 3/08/99 2,600,000 2,600,000
Washington, Missouri IDA IDR - Clemco Industries
Project, 3.67%, Due 3/08/99 5,000,000 5,000,000
------------
37,600,000
NEVADA 1.3%
Henderson Nevada Public Improvement Trust
MFHR Refunding:
Pueblo I Project, 5.00%, Due 3/08/99 11,715,000 11,715,000
Pueblo II Project, 5.00%, Due 3/08/99 11,500,000 11,500,000
Nevada Department of Commerce IDR - Master-
Halco, Inc. Project, 4.70%, Due 3/08/99 4,600,000 4,600,000
------------
27,815,000
NEW MEXICO 0.2%
Sandoval County, New Mexico MFHR - Arrowhead
Ridge Apartments Project, 3.75%, Due 3/08/99 4,000,000 4,000,000
NEW YORK 2.6%
New York, New York City Industrial Development
Agency Special Facility Revenue Trusts, 3.30%,
Due 3/08/99 18,085,000 18,085,000
26
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
STRONG MUNICIPAL ADVANTAGE FUND (continued)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
New York, New York City Municipal Water Finance
Authority Water and Sewer System Revenue Trust
Receipts, 3.20%, Due 3/08/99 $29,060,000 $ 29,060,000
Ontario County, New York Industrial Development
Agency IDR Refunding - Seneca Foods Corporation
Project, 3.35%, Due 3/08/99 5,185,000 5,185,000
Wayne County, New York IDA IDR - Seneca Foods
Corporation Project, 3.35%, Due 3/08/99 5,060,000 5,060,000
-----------
57,390,000
NORTH CAROLINA 0.4%
Guilford County, North Carolina Industrial Facilities
and PCFA Revenue - High Point Chemical Project,
4.35%, Due 3/08/99 3,000,000 3,000,000
Mecklenburg County, North Carolina Industrial
Facilities and PCFA Industrial Revenue - Okaya
Shinnichi Corporation of America Project, 4.60%,
Due 3/08/99 3,290,000 3,290,000
New Hanover County, North Carolina Industrial
Facilities Revenue - Wilmington Machinery, Inc.
Project, 3.45%, Due 3/08/99 865,000 865,000
Wake County, North Carolina Industrial Facilities and
PCFA IDR - Aeroglide Corporation Project, 3.40%,
Due 3/08/99 1,425,000 1,425,000
-----------
8,580,000
OHIO 0.1%
Trumbull County, Ohio IDR - ATD Corporation
Project, 5.25%, Due 3/08/99 1,250,000 1,250,000
PENNSYLVANIA 0.6%
Allentown, Pennsylvania Redevelopment Authority
MFHR Refunding - Arcadia Associated Project,
5.00%, Due 3/08/99 6,000,000 6,000,000
Columbia County, Pennsylvania IDA IDR -
Kleerdex Company Project, 4.60%, Due 3/08/99 6,500,000 6,500,000
-----------
12,500,000
SOUTH CAROLINA 0.6%
Laurens County, South Carolina Industrial Revenue -
NICCA USA Project, 4.45%, Due 3/08/99 8,800,000 8,800,000
South Carolina Jobs EDA EDR -
B.F. Shaw, Inc. Project, 3.45%, Due 3/08/99 4,000,000 4,000,000
-----------
12,800,000
TENNESSEE 1.6%
Anderson County, Tennessee IDB Revenue - Becromal
of America, Inc. Project, 3.50%, Due 3/08/99 1,965,000 1,965,000
Cocke County, Tennessee IDB IDR - GLI, Inc. Project,
3.15%, Due 3/08/99 3,310,000 3,310,000
Memphis-Shelby County, Tennessee IDB IDR -
Techno Steel Corporation Project, 4.95%, Due
3/08/99 4,000,000 4,000,000
Nashville and Davidson County, Tennessee
Metropolitan Government IDB MFHR Refunding:
Beechwood Apartments Project, 5.00%,
Due 3/08/99 8,995,000 8,995,000
Graybrook Apartments Project, 5.00%,
Due 3/08/99 6,710,000 6,710,000
Smyrna, Tennessee Housing Association, Inc.
MFHR Refunding - Imperial Garden Apartments,
5.00%, Due 3/08/99 9,285,000 9,285,000
-----------
34,265,000
TEXAS 1.4%
Angelina and Neches River Authority Refunding -
Temple-Inland Forest Project, 3.55%, Due 3/08/99 7,350,000 7,350,000
Harris County, Texas Housing Finance Corporation
MFHR - Torrey Chase Apartments Project, 3.72%,
Due 3/08/99 5,420,000 5,420,000
San Antonio, Texas Airport Lease Revenue - Hedrick
Beechcraft, Inc. Project, 4.15%, Due 3/08/99 3,900,000 3,900,000
Waller County, Texas IDC - McKesson Water
Products Projects, 4.05%, Due 3/08/99 6,000,000 6,000,000
Waxahachie, Texas IDA Waste Disposal Revenue -
Temple/Re-Con, Inc. Project, 4.05%, Due 3/08/99 8,200,000 8,200,000
-----------
30,870,000
UTAH 0.1%
Provo, Utah Housing Authority MFHR - Branbury
Project, 4.95%, Due 3/08/99 1,300,000 1,300,000
VERMONT 0.2%
Vermont EDA IDR - Tsubaki, Inc. Project,
4.60%, Due 3/08/99 5,000,000 5,000,000
WASHINGTON 0.3%
Pilchuck, Washington Development Public
Corporation Industrial Revenue - Kohkoku USA,
Inc. Project, 4.40%, Due 3/08/99 4,000,000 4,000,000
Yakima, Washington Housing Authority Revenue -
Klickitat Valley Hospital Project, 3.65%,
Due 3/08/99 3,215,000 3,215,000
-----------
7,215,000
WISCONSIN 0.4%
Janesville, Wisconsin IDR Refunding - Seneca Foods
Corporation Project, 3.35%, Due 3/08/99 7,710,000 7,710,000
MULTIPLE STATES 8.6%
Lehman Brothers, Inc. Floating Pooled Trust
Receipts, 3.30%, Due 3/08/99 11,115,000 11,115,000
Macon Trust Pooled Certificates, 3.17%, Due 3/08/99 45,000 45,000
Puttable Floating Option Tax-Exempt Receipts:
Series P-5, 3.45%, Due 3/08/99 45,000,000 44,995,500
Series SG P-3, 3.15%, Due 3/08/99 17,040,000 17,040,000
Series SG P-6, 3.45%, Due 3/08/99 31,760,000 31,759,409
Series SG P-7, 3.17%, Due 3/08/99 82,095,000 82,095,000
-----------
187,049,909
-----------
Total Weekly Variable Rate Put Bonds 679,059,909
TAXABLE WEEKLY VARIABLE RATE PUT BONDS 0.1% (d)
VIRGINIA
Virginia HDA Commonwealth Mortgage Revenue,
4.94%, Due 3/08/99 3,000,000 3,000,000
MUNICIPAL MONEY MARKET 4.0%
MULTIPLE STATES
Strong Municipal Money Market Fund (g) 87,100,000 87,100,000
- --------------------------------------------------------------------------------
Total Short-Term Investments (Cost $1,317,026,580) 1,318,322,693
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Total Investments in Securities (Cost $2,177,595,860) 100.8% 2,187,811,587
Other Assets and Liabilities, Net (0.8%) (16,889,869)
- --------------------------------------------------------------------------------
Net Assets 100.0% $2,170,921,718
================================================================================
27
<PAGE>
<TABLE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) FEBRUARY 28, 1999
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG HERITAGE MONEY FUND
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
Certificates of Deposit 1.8%
<S> <C> <C> <C> <C>
Deutsche Bank AG New York, 5.66% $19,750,000 5.77% 4/14/99 $19,747,491
Royal Bank of Canada, 5.15% 13,000,000 5.18 3/21/00 12,996,043
- ------------------------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit 32,743,534
- ------------------------------------------------------------------------------------------------------------------------------
Commercial Paper 87.8%
AES Hawaii, Inc. 17,350,000 4.78 4/09/99 17,260,156
9,650,000 5.04 3/05/99 9,644,596
AES Shady Point, Inc. 22,000,000 4.76 7/16/99 21,601,482
AESOP Funding Corporation:
(Acquired 1/20/99; Cost $10,915,529) (b) 11,000,000 4.85 3/18/99 10,974,807
(Acquired 2/17/99 - 2/19/99; Cost $8,940,086) (b) 9,000,000 4.87 4/09/99 8,952,528
Abbey National North America Corporation 11,000,000 4.72 7/20/99 10,796,647
9,000,000 4.79 4/22/99 8,937,730
Alpine Securitization Corporation (Acquired 1/21/99; Cost $26,850,862) (b) 27,000,000 4.85 3/03/99 26,992,725
American Home Products Corporation:
(Acquired 1/15/99; Cost $14,826,362) (b) 15,000,000 4.79 4/12/99 14,916,175
(Acquired 2/09/99; Cost $3,946,133) (b) 4,000,000 4.80 5/21/99 3,956,800
(Acquired 2/22/99; Cost $3,531,364) (b) 3,570,000 4.81 5/14/99 3,534,703
American Honda Finance Corporation 17,000,000 4.80 3/12/99 16,975,045
Aon Corporation 10,000,000 4.88 3/04/99 9,995,933
Ascot Capital Corporation:
(Acquired 1/20/99; Cost $9,448,778) (b) 9,550,000 4.83 4/09/99 9,500,030
(Acquired 1/14/99; Cost $10,814,281) (b) 10,950,000 4.85 4/16/99 10,882,140
(Acquired 1/14/99; Cost $1,257,777) (b) 1,270,000 4.88 3/26/99 1,265,696
Atlantis One Funding Corporation 13,000,000 4.79 5/13/99 12,873,730
3,000,000 5.02 3/26/99 2,989,542
4,000,000 5.05 3/24/99 3,987,094
Atlas Copco AB:
(Acquired 2/18/99; Cost $5,279,208) (b) 5,300,000 4.87 3/19/99 5,287,095
(Acquired 2/18/99; Cost $2,971,882) (b) 3,000,000 4.89 4/28/99 2,976,365
Barton Capital Corporation:
(Acquired 1/19/99; Cost $12,853,490) (b) 13,000,000 4.83 4/13/99 12,925,001
(Acquired 1/12/99; Cost $3,951,300) (b) 4,000,000 4.87 4/12/99 3,977,273
(Acquired 7/01/98; Cost $3,841,080) (b) 4,000,000 5.48 3/19/99 3,989,040
Bavaria Universal Funding Corporation:
(Acquired 2/17/99; Cost $5,928,058) (b) 6,000,000 4.85 5/17/99 5,937,758
(Acquired 10/07/98; Cost $4,883,108) (b) 5,000,000 5.07 3/22/99 4,985,213
Beta Finance, Inc. (Acquired 1/20/99; Cost $19,759,500) (b) 20,000,000 4.81 4/20/99 19,866,389
Brazos River Authority Texas PCR 6,000,000 5.28 3/09/99 6,000,000
British Gas Capital, Inc. 16,000,000 5.34 3/02/99 15,997,627
CSC Enterprises 24,620,000 4.78 4/19/99 24,459,820
2,380,000 4.80 5/06/99 2,359,056
Calcasieu Parish, Inc. Louisiana IDB Environmental Revenue 18,500,000 4.89 6/16/99 18,500,000
California PCFA Environmental Improvement Revenue:
(Acquired 2/08/99; Cost $4,300,000) (b) 4,300,000 4.88 5/07/99 4,300,000
(Acquired 12/08/98; Cost $13,850,000) (b) 13,850,000 5.15 4/14/99 13,850,000
(Acquired 11/09/98; Cost $13,000,000) (b) 13,000,000 5.27 3/10/99 13,000,000
Campbell Soup Company 15,000,000 4.76 4/20/99 14,900,833
11,800,000 5.22 3/19/99 11,769,202
Centric Capital Corporation:
(Acquired 1/22/99; Cost $3,355,935) (b) 3,400,000 4.81 4/29/99 3,373,198
(Acquired 2/05/99; Cost $4,742,803) (b) 4,800,000 4.82 5/05/99 4,758,227
(Acquired 1/14/99; Cost $8,892,310) (b) 9,000,000 4.84 4/14/99 8,946,760
(Acquired 1/11/99; Cost $2,962,539) (b) 2,997,000 4.87 4/06/99 2,982,405
Certain Funding Corporation:
(Acquired 1/14/99; Cost $6,669,975) (b) 6,750,000 4.85 4/12/99 6,711,806
(Acquired 1/12/99; Cost $3,069,744) (b) 3,100,000 4.88 3/25/99 3,089,915
(Acquired 12/02/98; Cost $9,671,593) (b) 9,800,000 5.30 3/01/99 9,800,000
CIGNA Corporation 4,665,000 4.83 4/07/99 4,641,842
Cogentrix of Richmond, Inc. 16,000,000 4.85 3/24/99 15,950,422
5,186,000 4.87 3/12/99 5,178,283
Commonwealth Bank of Australia 11,000,000 5.03 3/10/99 10,986,168
1,400,000 5.08 3/15/99 1,397,234
</TABLE>
28
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG HERITAGE MONEY FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
Cooperative Association Tractor Dealers, Inc.:
<S> <C> <C> <C> <C>
Series A $ 6,000,000 4.77% 7/14/99 $ 5,892,675
2,430,000 4.85 4/13/99 2,415,923
3,670,000 4.87 3/05/99 3,668,014
1,300,000 4.87 4/30/99 1,289,448
3,900,000 5.05 3/23/99 3,887,964
Series B 1,700,000 4.83 5/07/99 1,684,718
1,200,000 4.90 5/06/99 1,189,220
7,750,000 5.02 4/06/99 7,711,095
3,000,000 5.05 3/02/99 2,999,579
Credit Suisse First Boston, Inc. (Acquired 2/05/99; Cost $13,030,336) (b) 13,200,000 4.82 5/12/99 13,072,752
Edison Asset Securitization LLC:
(Acquired 1/21/99; Cost $9,830,667) (b) 10,000,000 4.80 5/28/99 9,882,667
(Acquired 2/16/99; Cost $3,437,182) (b) 3,520,000 4.84 8/10/99 3,443,334
(Acquired 2/10/99; Cost $1,261,430) (b) 1,275,000 4.85 4/30/99 1,264,694
Enterprise Funding Corporation:
(Acquired 12/31/98; Cost $5,728,950) (b) 5,800,000 4.90 3/31/99 5,776,317
(Acquired 12/28/98; Cost $5,014,694) (b) 5,078,000 5.10 3/26/99 5,060,015
Equilon Enterprises LLC 20,000,000 4.79 4/13/99 19,885,572
Eureka Securitization, Inc. (Acquired 1/13/99; Cost $16,805,326) (b) 17,000,000 4.85 4/08/99 16,912,969
Ford Motor Credit Company 10,450,000 5.19 3/12/99 10,433,428
Ford Motor Credit Company Puerto Rico, Inc. 9,825,000 4.83 4/23/99 9,755,136
Formosa Plastics Corporation USA 5,000,000 4.85 4/23/99 4,964,299
10,000,000 4.86 4/15/99 9,939,250
2,500,000 5.00 3/05/99 2,498,611
Fountain Square Commercial Corporation:
(Acquired 1/21/99; Cost $2,667,397) (b) 2,700,000 4.83 4/21/99 2,681,525
(Acquired 2/02/99; Cost $9,319,700) (b) 9,430,000 4.84 4/30/99 9,353,931
(Acquired 2/10/99; Cost $1,586,744) (b) 1,606,000 4.85 5/10/99 1,590,855
(Acquired 1/20/99; Cost $3,556,396) (b) 3,583,000 4.86 3/16/99 3,575,744
(Acquired 1/12/99; Cost $1,018,667) (b) 1,031,000 4.95 4/09/99 1,025,471
Franklin Resources, Inc.:
(Acquired 1/05/99; Cost $4,948,806) (b) 5,000,000 4.85 3/22/99 4,985,854
(Acquired 12/07/98 - 12/11/98; Cost $11,701,330) (b) 11,850,000 5.02 3/08/99 11,838,440
Frigate Funding Corporation (Acquired 1/20/99; Cost $26,762,587) (b) 27,000,000 4.87 3/26/99 26,908,688
GTE Corporation:
(Acquired 2/04/99; Cost $8,654,195) (b) 8,700,000 4.86 3/15/99 8,683,557
(Acquired 1/29/99; Cost $11,148,486) (b) 11,200,000 4.87 3/04/99 11,195,455
(Acquired 2/16/99; Cost $7,065,281) (b) 7,100,000 4.89 3/24/99 7,077,818
General Electric Capital Corporation 12,000,000 4.80 5/20/99 11,872,000
7,000,000 5.33 3/15/99 6,985,491
General Motors Acceptance Corporation 3,000,000 4.85 4/06/99 2,985,450
Goldman Sachs Group LP 14,690,000 5.05 3/16/99 14,659,090
Greenwich Funding Corporation:
(Acquired 1/19/99; Cost $22,773,235) (b) 23,051,000 4.82 4/19/99 22,899,773
(Acquired 2/17/99; Cost $3,961,739) (b) 4,000,000 4.85 4/29/99 3,968,206
Greyhawk Funding LLC:
(Acquired 1/22/99; Cost $20,736,252) (b) 21,000,000 4.81 4/26/99 20,842,873
(Acquired 2/17/99; Cost $4,963,475) (b) 5,000,000 4.87 4/12/99 4,971,592
Gulf Coast IDA Environmental Facilities Revenue 13,300,000 5.25 3/04/99 13,300,000
Gulf Coast Waste Disposal Authority PCR 4,400,000 4.87 6/11/99 4,400,000
4,000,000 5.27 3/09/99 4,000,000
Halifax PLC 17,000,000 4.79 7/06/99 16,712,733
Harley-Davidson Funding Corporation (Acquired 2/17/99; Cost $11,918,667) (b) 12,000,000 4.88 4/08/99 11,938,187
Henkel Corporation:
(Acquired 1/15/99; Cost $11,955,573) (b) 12,220,000 4.75 6/28/99 12,028,129
(Acquired 2/03/99; Cost $6,003,630) (b) 6,150,000 4.76 8/02/99 6,024,772
ING America Insurance Holdings, Inc. 1,325,000 4.87 4/26/99 1,314,962
8,000,000 5.12 3/22/99 7,976,107
IPALCO Enterprises:
(Acquired 1/13/99; Cost $2,501,399) (b) 2,535,000 4.82 4/22/99 2,517,351
(Acquired 12/11/98; Cost $7,468,048) (b) 7,565,000 5.07 3/12/99 7,553,281
(Acquired 12/18/98; Cost $6,923,043) (b) 7,000,000 5.14 3/05/99 6,996,002
29
</TABLE>
<PAGE>
<TABLE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) FEBRUARY 28, 1999
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG HERITAGE MONEY FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
International Securitization Corporation:
<S> <C> <C> <C> <C>
(Acquired 1/26/99; Cost $2,952,499) (b) $ 3,000,000 4.79% 5/25/99 $ 2,966,071
(Acquired 2/09/99; Cost $8,166,790) (b) 8,200,000 4.86 3/11/99 8,188,930
(Acquired 2/17/99; Cost $3,683,483) (b) 3,700,000 4.87 3/22/99 3,689,489
(Acquired 2/17/99; Cost $4,951,059) (b) 4,970,000 4.90 3/17/99 4,959,176
Johnson & Johnson (Acquired 10/29/98; Cost $21,638,479) (b) 22,000,000 4.84 3/01/99 22,000,000
Kitty Hawk Funding Corporation:
(Acquired 1/15/99; Cost $9,488,176) (b) 9,600,000 4.82 4/12/99 9,546,016
(Acquired 1/05/99; Cost $10,259,789) (b) 10,372,000 4.93 3/25/99 10,337,911
(Acquired 9/21/98; Cost $5,452,499) (b) 5,600,000 5.21 3/22/99 5,582,981
Knight-Ridder, Inc. 1,900,000 4.85 3/17/99 1,895,904
LG&E Capital Corporation:
(Acquired 12/09/98; Cost $11,082,646) (b) 11,500,000 4.88 9/03/99 11,210,344
(Acquired 12/15/98; Cost $10,627,500) (b) 10,800,000 5.00 4/09/99 10,741,500
Leland Stanford Junior University 6,000,000 4.80 8/13/99 5,868,000
3,000,000 4.90 5/21/99 2,966,925
Lloyds Bank PLC 4,000,000 4.85 4/01/99 3,983,294
Lucent Technologies, Inc. 20,000,000 4.76 4/08/99 19,899,511
Market Street Funding Corporation:
(Acquired 2/12/99; Cost $11,904,617) (b) 12,000,000 4.85 4/12/99 11,932,100
(Acquired 2/17/99; Cost $8,458,605) (b) 8,500,000 4.87 3/25/99 8,472,403
Martin Marietta Materials, Inc.:
(Acquired 2/17/99; Cost $3,988,637) (b) 4,000,000 4.87 3/10/99 3,995,130
(Acquired 2/12/99; Cost $14,879,788) (b) 15,000,000 4.89 4/12/99 14,914,425
(Acquired 2/09/99; Cost $2,982,780) (b) 3,000,000 4.92 3/23/99 2,990,980
(Acquired 2/26/99; Cost $1,989,044) (b) 2,000,000 4.93 4/07/99 1,989,866
Merrill Lynch & Company, Inc. 27,700,000 4.75 4/09/99 27,557,460
Minolta Corporation 906,000 4.90 3/02/99 905,877
JP Morgan & Company, Inc. 7,500,000 4.80 5/10/99 7,430,000
3,975,000 4.83 7/12/99 3,904,069
Morgan Stanley, Dean Witter & Company 27,000,000 4.76 4/09/99 26,860,770
Motorola Credit Corporation 6,600,000 4.80 4/16/99 6,559,520
Motorola, Inc. 2,640,000 4.95 4/01/99 2,628,747
Nationwide Building Society 8,000,000 4.84 5/06/99 7,929,013
13,000,000 5.06 3/11/99 12,981,728
New York Life Capital Corporation
(Acquired 12/07/98 - 12/11/98; Cost $9,875,689) (b) 10,000,000 5.04 3/09/99 9,988,800
Oakland-Alameda County, California Coliseum Authority 8,050,000 4.87 3/04/99 8,050,000
Oakland-Alameda County, California Coliseum Authority Lease Revenue 1,900,000 4.90 3/09/99 1,900,000
Oklahoma State Industrial Finance Authority 8,070,000 5.00 5/03/99 8,070,000
Old Line Funding Corporation:
(Acquired 2/01/99; Cost $4,310,181) (b) 4,340,000 4.85 3/24/99 4,326,552
(Acquired 2/18/99; Cost $11,914,140) (b) 12,000,000 4.86 4/12/99 11,931,960
PACCAR Financial Corporation 3,500,000 4.77 4/19/99 3,477,276
7,400,000 4.80 5/20/99 7,321,067
2,450,000 4.82 3/18/99 2,444,424
Peacock Funding Corporation:
(Acquired 1/22/99 - 2/01/99; Cost $4,038,966) (b) 4,094,000 4.83 5/04/99 4,058,882
(Acquired 2/04/99; Cost $3,936,137) (b) 4,000,000 4.83 6/03/99 3,949,553
(Acquired 2/11/99; Cost $4,923,882) (b) 5,000,000 4.85 6/04/99 4,936,007
(Acquired 12/21/98; Cost $4,742,320) (b) 4,800,000 5.15 3/15/99 4,790,387
(Acquired 11/13/98; Cost $1,963,144) (b) 2,000,000 5.35 3/17/99 1,995,244
Pitney Bowes Credit Corporation 127,700 4.54 Upon Demand 127,700
Progress Capital Holdings, Inc. 16,915,000 4.77 4/19/99 16,805,179
Prudential Finance Jersey, Ltd. 3,475,000 4.83 7/15/99 3,411,593
5,000,000 4.83 8/19/99 4,885,288
Questar Corporation:
(Acquired 2/22/99; Cost $6,747,997) (b) 6,800,000 4.83 4/20/99 6,754,383
(Acquired 2/09/99; Cost $995,294) (b) 1,000,000 4.84 3/16/99 997,983
(Acquired 2/26/99; Cost $3,967,600) (b) 4,000,000 4.86 4/27/99 3,969,220
Repeat Offering Securitization Entity, Inc.
(Acquired 2/26/99; Cost $17,777,505) (b) 18,000,000 4.89 5/28/99 17,784,840
SAFECO Credit Corporation 2,040,000 4.90 3/11/99 2,037,223
E.W. Scripps Company (Acquired 1/05/99; Cost $6,426,442) (b) 6,500,000 4.85 3/30/99 6,474,605
Sigma Finance, Inc.:
(Acquired 1/15/99; Cost $4,100,200) (b) 4,150,000 4.80 4/15/99 4,125,100
(Acquired 1/19/99; Cost $12,675,399) (b) 12,830,000 4.82 4/19/99 12,745,828
Society of New York Hospital Fund, Inc. 4,800,000 5.23 3/08/99 4,795,119
</TABLE>
30
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG HERITAGE MONEY FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Spintab-Swedmortgage AB $ 3,800,000 4.85% 8/13/99 $ 3,715,529
17,500,000 5.03 4/15/99 17,389,969
Stellar Funding Group, Inc.:
(Acquired 1/21/99; Cost $2,075,103) (b) 2,100,000 4.85 4/19/99 2,086,137
(Acquired 1/11/99; Cost $1,337,092) (b) 1,362,000 4.95 5/24/99 1,346,269
(Acquired 12/21/98; Cost $2,328,103) (b) 2,380,000 5.00 5/27/99 2,351,242
(Acquired 10/01/98; Cost $1,478,077) (b) 1,535,000 5.00 6/25/99 1,510,269
(Acquired 9/21/98; Cost $6,979,497) (b) 7,158,000 5.25 3/11/99 7,147,561
(Acquired 11/16/98; Cost $350,914) (b) 362,000 5.25 6/14/99 356,457
Sunshine State Governmental Financing Commission 6,076,000 4.85 4/05/99 6,047,350
5,260,000 5.20 3/03/99 5,258,480
Toyota Motor Credit Company 3,675,000 4.78 5/10/99 3,640,843
11,500,000 4.78 5/11/99 11,391,587
Tulip Funding Corporation:
(Acquired 1/27/99; Cost $2,198,133) (b) 2,225,000 4.83 4/27/99 2,207,984
(Acquired 1/04/99; Cost $12,747,243) (b) 12,900,000 4.90 4/01/99 12,845,569
UBS Finance, Inc. 13,900,000 4.81 6/07/99 13,717,995
7,400,000 4.82 7/13/99 7,267,236
USAA Capital Corporation 2,600,000 4.79 3/19/99 2,593,773
4,400,000 4.80 3/18/99 4,390,027
5,000,000 4.83 4/16/99 4,969,142
Unifunding, Inc. 27,700,000 4.80 4/14/99 27,537,493
Variable Funding Capital Corporation:
(Acquired 1/15/99; Cost $15,067,381) (b) 15,250,000 4.79 4/15/99 15,158,691
(Acquired 1/11/99; Cost $6,024,706) (b) 6,100,000 4.83 4/13/99 6,064,808
Vattenfall Treasury, Inc. 20,000,000 4.82 6/16/99 19,713,478
Washington Post Company (Acquired 10/05/98; Cost $1,721,764) (b) 1,760,000 4.95 3/12/99 1,757,338
West Baton Rouge Parish, Louisiana (Acquired 1/06/99; Cost $15,500,000) (b) 15,500,000 4.92 5/14/99 15,500,000
Westpac Capital Corporation 18,000,000 4.78 7/12/99 17,682,130
Whiting, Indiana Industrial Sewage and Solid Waste Disposal Revenue 5,000,000 4.91 5/12/99 5,000,000
Windmill Funding Corporation:
(Acquired 1/22/99; Cost $4,939,207) (b) 5,000,000 4.81 4/23/99 4,964,593
(Acquired 1/25/99; Cost $4,391,256) (b) 4,434,000 4.82 4/07/99 4,412,034
(Acquired 1/29/99; Cost $8,098,501) (b) 8,150,000 4.84 3/17/99 8,132,468
(Acquired 2/18/99; Cost $315,433) (b) 319,000 4.85 5/12/99 315,906
Wood Street Funding Corporation:
(Acquired 1/29/99; Cost $6,661,285) (b) 6,710,000 4.84 3/24/99 6,689,251
(Acquired 1/11/99; Cost $11,345,389) (b) 11,500,000 4.84 4/21/99 11,421,148
(Acquired 1/14/99; Cost $1,000,990) (b) 1,013,000 4.85 4/12/99 1,007,268
(Acquired 2/12/99; Cost $4,561,825) (b) 4,599,000 4.85 4/13/99 4,572,358
Xerox Credit Corporation 6,075,000 4.82 4/13/99 6,040,025
9,825,000 5.34 3/05/99 9,819,171
Yale University 7,525,000 4.82 5/13/99 7,451,452
Yorkshire Building Society 10,000,000 4.86 4/06/99 9,951,400
7,000,000 4.97 3/02/99 6,999,034
- --------------------------------------------------------------------------------------------------------------------------------
Total Commercial Paper 1,612,891,326
- --------------------------------------------------------------------------------------------------------------------------------
Corporate Obligations 1.4%
General Motors Acceptance Corporation Medium-Term Notes, 6.625% 6,000,000 5.14 7/07/99 6,030,720
Wachovia Bank NA Short-Term Bank Notes, 4.84% 19,000,000 4.84 7/14/99 19,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Corporate Obligations 25,030,720
- --------------------------------------------------------------------------------------------------------------------------------
31
</TABLE>
<PAGE>
<TABLE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) FEBRUARY 28, 1999
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG HERITAGE MONEY FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
Taxable Variable Rate Put Bonds 3.3%
<S> <C> <C> <C> <C>
Alabama State IDA IDR $ 1,350,000 5.00% 3/04/99 $ 1,350,000
Aurora, Kane & DuPage Counties, Illinois IDR 2,900,000 5.00 3/04/99 2,900,000
Botsford General Hospital Revenue 4,400,000 4.95 3/01/99 4,400,000
Galliano Marine Services, Inc. 5,040,000 5.00 3/04/99 5,040,000
KinderCare Learning Centers, Inc. 4,500,000 5.00 3/03/99 4,500,000
Kings Glen Apartments LLC 3,325,000 5.00 3/04/99 3,325,000
Mississippi Business Finance Corporation IDR - GE Plastics Project 2,500,000 4.92 3/01/99 2,500,000
Montgomery County, Pennsylvania IDA Revenue 530,000 5.00 3/03/99 530,000
New Jersey EDA EDR - MSNBC/CNBC 9,000,000 4.92 3/01/99 9,000,000
New Jersey Sports & Exposition Authority Sports Complex Subordinated
Refunding Revenue 2,000,000 5.04 3/01/99 2,000,000
Northchase Apartments LLC 5,000,000 5.00 3/04/99 5,000,000
Radiation Oncology Partners LLP 2,800,000 5.00 3/04/99 2,800,000
Thayer Properties LLC 3,065,000 5.00 3/04/99 3,065,000
Tifton Mall, Inc. 4,815,000 5.00 3/04/99 4,815,000
WLB LLC 10,000,000 5.00 3/04/99 10,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Taxable Variable Rate Put Bonds 61,225,000
- --------------------------------------------------------------------------------------------------------------------------------
United States Government and Agency Issues 8.9%
Federal Home Loan Bank Notes:
5.00%, Due 10/27/99 21,000,000 5.01 10/27/99 20,998,619
5.00%, Due 1/28/00 17,000,000 5.00 1/28/00 17,000,000
5.00%, Due 2/24/00 6,000,000 5.02 2/24/00 5,998,817
5.03%, Due 10/29/99 25,000,000 5.03 10/29/99 25,000,000
5.05%, Due 2/25/00 23,000,000 5.05 2/25/00 23,000,000
5.08%, Due 3/03/00 (f) 18,500,000 5.08 3/03/00 18,500,000
5.10%, Due 3/08/00 (f) 18,500,000 5.10 3/08/00 18,500,000
5.14%, Due 3/08/00 (f) 18,200,000 5.14 3/08/00 18,200,000
Federal National Mortgage Association Medium-Term Notes, 5.04%, Due 2/23/00 16,000,000 5.02 2/23/00 16,002,990
- --------------------------------------------------------------------------------------------------------------------------------
Total United States Government and Agency Issues 163,200,426
- --------------------------------------------------------------------------------------------------------------------------------
Total Investments in Securities 103.2% 1,895,091,006
Other Assets and Liabilities, Net (3.2%) (58,407,347)
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $1,836,683,659
================================================================================================================================
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG INVESTORS MONEY FUND
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
Certificates of Deposit 1.4%
<S> <C> <C> <C> <C>
Deutsche Bank AG New York, 5.66% $ 500,000 5.77% 4/14/99 $ 499,936
Royal Bank of Canada, 5.15% 3,000,000 5.18 3/21/00 2,999,087
- --------------------------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit 3,499,023
- --------------------------------------------------------------------------------------------------------------------------------
Commercial Paper 89.2%
AES Hawaii, Inc. 1,700,000 4.78 4/09/99 1,691,197
400,000 5.04 3/05/99 399,776
AES Shady Point, Inc. 2,000,000 4.76 7/16/99 1,963,771
1,200,000 4.76 7/23/99 1,177,152
AESOP Funding Corporation (Acquired 1/28/99; Cost $1,339,655) (b) 1,350,000 4.84 3/26/99 1,345,462
Abbey National North America Corporation 1,650,000 4.72 7/20/99 1,619,497
1,650,000 4.79 4/22/99 1,638,584
American Home Products Corporation:
(Acquired 2/05/99; Cost $2,467,469) (b) 2,500,000 4.78 5/14/99 2,475,436
(Acquired 2/08/99; Cost $985,763) (b) 1,000,000 4.79 5/26/99 988,557
American Honda Finance Corporation 3,300,000 4.80 3/12/99 3,295,160
Ascot Capital Corporation (Acquired 1/14/99; Cost $1,530,789) (b) 1,550,000 4.85 4/16/99 1,540,394
Asset Backed Capital Finance, Inc. (Acquired 2/23/99; Cost $2,878,379) (b) 2,900,000 4.88 4/19/99 2,880,738
Atlantis One Funding Corporation 250,000 4.88 4/14/99 248,509
1,670,000 4.89 7/29/99 1,635,974
300,000 5.05 3/24/99 299,032
</TABLE>
32
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG INVESTORS MONEY FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Atlas Copco AB (Acquired 2/18/99; Cost $2,971,883) (b) $3,000,000 4.89% 4/28/99 $2,976,365
Barton Capital Corporation:
(Acquired 1/26/99; Cost $469,432) (b) 475,000 4.85 4/23/99 471,608
(Acquired 1/12/99 - 1/25/99; Cost $1,853,417) (b) 1,875,000 4.86 4/12/99 1,864,378
(Acquired 7/01/98; Cost $600,169) (b) 625,000 5.48 3/19/99 623,287
Beta Finance, Inc. (Acquired 1/20/99; Cost $2,469,937) (b) 2,500,000 4.81 4/20/99 2,483,299
Brazos River Authority Texas PCR 2,800,000 5.28 3/09/99 2,800,000
British Gas Capital, Inc. 750,000 5.34 3/02/99 749,889
CSC Enterprises 2,000,000 4.78 4/19/99 1,986,988
1,600,000 4.80 5/06/99 1,585,920
Calcasieu Parish, Inc. Louisiana IDB Environmental Revenue 2,000,000 4.89 6/16/99 2,000,000
California PCFA Environmental Improvement Revenue:
(Acquired 2/08/99; Cost $700,000) (b) 700,000 4.88 5/07/99 700,000
(Acquired 12/08/98; Cost $2,800,000) (b) 2,800,000 5.15 4/14/99 2,800,000
(Acquired 11/09/98; Cost $1,500,000) (b) 1,500,000 5.27 3/10/99 1,500,000
Campbell Soup Company 2,200,000 4.78 4/07/99 2,189,192
1,200,000 5.22 3/19/99 1,196,868
Centric Capital Corporation:
(Acquired 2/05/99; Cost $889,275) (b) 900,000 4.82 5/05/99 892,167
(Acquired 1/07/99 - 1/11/99; Cost $1,581,110) (b) 1,600,000 4.86 4/06/99 1,592,228
(Acquired 10/13/98; Cost $977,644) (b) 1,000,000 5.03 3/22/99 997,066
Certain Funding Corporation:
(Acquired 1/14/99; Cost $1,136,366) (b) 1,150,000 4.85 4/12/99 1,143,493
(Acquired 1/08/99; Cost $445,317) (b) 450,000 4.93 3/25/99 448,521
(Acquired 12/02/98; Cost $1,480,346) (b) 1,500,000 5.30 3/01/99 1,500,000
CIGNA Corporation 335,000 4.83 4/07/99 333,337
Cogentrix of Richmond, Inc. 2,785,000 4.85 3/24/99 2,776,366
Commonwealth Bank of Australia 2,000,000 5.03 3/10/99 1,997,485
400,000 5.08 3/15/99 399,210
Cooperative Association Tractor Dealers, Inc.:
Series A 1,000,000 4.85 4/13/99 994,207
1,000,000 4.87 3/12/99 998,512
300,000 5.05 3/23/99 299,074
Series B 700,000 4.83 5/07/99 693,707
500,000 4.85 3/23/99 498,518
300,000 4.86 5/04/99 297,408
900,000 4.90 5/06/99 891,915
250,000 5.02 4/06/99 248,745
250,000 5.10 3/10/99 249,681
700,000 5.15 3/15/99 698,598
Edison Asset Securitization LLC (Acquired 1/21/99; Cost $2,654,280) (b) 2,700,000 4.80 5/28/99 2,668,320
Enterprise Funding Corporation:
(Acquired 2/22/99; Cost $1,143,155) (b) 1,150,000 4.87 4/07/99 1,144,244
(Acquired 12/31/98; Cost $1,580,400) (b) 1,600,000 4.90 3/31/99 1,593,467
Equilon Enterprises LLC 3,000,000 4.83 4/05/99 2,985,913
Eureka Securitization, Inc. (Acquired 1/13/99; Cost $3,064,501) (b) 3,100,000 4.85 4/08/99 3,084,130
First Data Corporation 550,000 5.01 3/09/99 549,388
Ford Motor Credit Company 1,650,000 4.79 7/09/99 1,621,460
1,100,000 5.19 3/12/99 1,098,255
Ford Motor Credit Company Puerto Rico, Inc. 850,000 4.83 4/23/99 843,956
Formosa Plastics Corporation USA 2,200,000 4.85 4/23/99 2,184,291
600,000 5.00 3/05/99 599,667
Fountain Square Commercial Corporation:
(Acquired 2/18/99; Cost $924,880) (b) 936,000 4.86 5/17/99 926,270
(Acquired 1/07/99; Cost $1,002,775) (b) 1,014,000 4.92 3/29/99 1,010,120
(Acquired 1/12/99; Cost $1,482,056) (b) 1,500,000 4.95 4/09/99 1,491,956
Franklin Resources, Inc.:
(Acquired 12/07/98; Cost $789,889) (b) 800,000 5.00 3/08/99 799,222
(Acquired 12/17/98; Cost $641,794) (b) 650,000 5.05 3/17/99 648,541
Frigate Funding Corporation:
(Acquired 1/25/99; Cost $1,289,645) (b) 1,300,000 4.86 3/25/99 1,295,788
(Acquired 1/20/99; Cost $1,982,414) (b) 2,000,000 4.87 3/26/99 1,993,236
GTE Corporation:
(Acquired 2/04/99; Cost $447,631) (b) 450,000 4.86 3/15/99 449,149
(Acquired 2/10/99; Cost $347,921) (b) 350,000 4.86 3/26/99 348,819
(Acquired 2/16/99; Cost $2,786,308) (b) 2,800,000 4.89 3/24/99 2,791,252
33
</TABLE>
<PAGE>
<TABLE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) FEBRUARY 28, 1999
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG INVESTORS MONEY FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
General Electric Capital Corporation $ 350,000 4.79% 6/04/99 $ 345,576
2,000,000 4.80 5/20/99 1,978,667
1,000,000 5.33 3/15/99 997,927
General Mills, Inc. 1,700 4.54 Upon Demand 1,700
Goldman Sachs Group LP 1,310,000 5.05 3/16/99 1,307,244
Greenwich Funding Corporation (Acquired 1/26/99; Cost $982,565) (b) 993,000 4.85 4/14/99 987,114
Greyhawk Funding LLC (Acquired 1/22/99; Cost $592,464) (b) 600,000 4.81 4/26/99 595,511
Gulf Coast IDA Environmental Facilities Revenue 2,700,000 5.25 3/04/99 2,700,000
Gulf Coast Waste Disposal Authority PCR 1,200,000 4.87 6/11/99 1,200,000
2,400,000 5.27 3/09/99 2,400,000
Halifax PLC 500,000 4.79 7/06/99 491,551
Harley-Davidson Funding Corporation (Acquired 2/17/99; Cost $2,502,920) (b) 2,520,000 4.88 4/08/99 2,507,019
Henkel Corporation:
(Acquired 1/15/99; Cost $763,122) (b) 780,000 4.75 6/28/99 767,753
(Acquired 2/03/99; Cost $1,906,335) (b) 1,950,000 4.77 7/22/99 1,913,052
ING America Insurance Holdings, Inc. 2,300,000 4.87 4/26/99 2,282,576
1,500,000 5.12 3/22/99 1,495,520
IPALCO Enterprises:
(Acquired 1/26/99; Cost $197,333) (b) 200,000 4.80 5/06/99 198,240
(Acquired 1/13/99; Cost $458,836) (b) 465,000 4.82 4/22/99 461,763
(Acquired 12/11/98; Cost $1,120,454) (b) 1,135,000 5.07 3/12/99 1,133,242
(Acquired 12/18/98; Cost $1,483,509) (b) 1,500,000 5.14 3/05/99 1,499,143
International Securitization Corporation:
(Acquired 1/22/99; Cost $1,087,187) (b) 1,100,000 4.82 4/19/99 1,092,783
(Acquired 2/24/99; Cost $988,010) (b) 1,000,000 4.85 5/24/99 988,683
Kitty Hawk Funding Corporation:
(Acquired 1/05/99; Cost $1,483,772) (b) 1,500,000 4.93 3/25/99 1,495,070
(Acquired 9/21/98; Cost $486,830) (b) 500,000 5.21 3/22/99 498,480
LG&E Capital Corporation:
(Acquired 12/09/98; Cost $963,708) (b) 1,000,000 4.88 9/03/99 974,813
(Acquired 12/15/98; Cost $1,279,236) (b) 1,300,000 5.00 4/09/99 1,292,958
Leland Stanford Junior University 850,000 4.80 4/12/99 845,240
2,000,000 4.80 8/13/99 1,956,000
750,000 4.90 5/21/99 741,731
Lloyds Bank PLC 2,130,000 4.85 4/01/99 2,121,104
Market Street Funding Corporation (Acquired 2/12/99; Cost $3,571,385) (b) 3,600,000 4.85 4/12/99 3,579,630
Martin Marietta Materials, Inc. (Acquired 2/12/99; Cost $3,571,149) (b) 3,600,000 4.89 4/12/99 3,579,462
Merrill Lynch & Company, Inc. 2,700,000 4.75 4/09/99 2,686,106
Minolta Corporation 1,870,000 4.88 3/02/99 1,869,746
JP Morgan & Company, Inc. 500,000 4.80 5/10/99 495,333
1,575,000 4.83 7/12/99 1,546,894
Motorola Credit Corporation 400,000 4.80 4/16/99 397,547
Motorola, Inc. 1,160,000 4.95 4/01/99 1,155,055
Nationwide Building Society 2,000,000 4.84 5/06/99 1,982,253
1,000,000 5.06 3/11/99 998,595
New York Life Capital Corporation:
(Acquired 2/02/99; Cost $1,484,465) (b) 1,500,000 4.78 4/21/99 1,489,843
(Acquired 12/07/98; Cost $987,222) (b) 1,000,000 5.00 3/09/99 998,889
Oakland-Alameda County, California Coliseum Authority 1,700,000 4.87 3/04/99 1,700,000
Oakland-Alameda County, California Coliseum Authority Lease Revenue 1,300,000 4.90 3/09/99 1,300,000
Oklahoma State Industrial Finance Authority 500,000 5.00 5/03/99 500,000
Old Line Funding Corporation:
(Acquired 2/01/99; Cost $1,291,068) (b) 1,300,000 4.85 3/24/99 1,295,972
(Acquired 2/18/99; Cost $297,853) (b) 300,000 4.86 4/12/99 298,299
PACCAR Financial Corporation 500,000 4.77 5/06/99 495,627
Peacock Funding Corporation:
(Acquired 2/04/99; Cost $891,535) (b) 906,000 4.83 6/03/99 894,574
(Acquired 2/01/99; Cost $493,803) (b) 500,000 4.85 5/04/99 495,689
(Acquired 10/26/98 - 12/21/98; Cost $1,035,525) (b) 1,050,000 5.11 3/15/99 1,047,912
Pitney Bowes Credit Corporation 28,600 4.54 Upon Demand 28,600
Questar Corporation:
(Acquired 2/09/99; Cost $2,388,707) (b) 2,400,000 4.84 3/16/99 2,395,160
(Acquired 2/26/99; Cost $443,341) (b) 444,000 4.86 3/09/99 443,520
(Acquired 2/26/99; Cost $942,305) (b) 950,000 4.86 4/27/99 942,690
Repeat Offering Securitization Entity, Inc.
(Acquired 2/26/99; Cost $3,753,029) (b) 3,800,000 4.89 5/28/99 3,754,577
SAFECO Credit Corporation 2,000,000 4.90 3/11/99 1,997,278
1,000,000 4.90 3/29/99 996,189
</TABLE>
34
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG INVESTORS MONEY FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sara Lee Corporation $ 240,600 4.54% Upon Demand $ 240,600
E.W. Scripps Company:
(Acquired 1/05/99; Cost $494,342) (b) 500,000 4.85 3/30/99 498,047
(Acquired 11/05/98 - 11/06/98; Cost $1,079,856) (b) 1,100,000 5.05 3/16/99 1,097,686
Sigma Finance, Inc. (Acquired 1/19/99; Cost $563,131) (b) 570,000 4.82 4/19/99 566,260
Society of New York Hospital Fund, Inc. 2,000,000 5.23 3/08/99 1,997,966
Spintab-Swedmortgage AB 1,200,000 4.85 8/13/99 1,173,325
2,500,000 5.03 4/15/99 2,484,281
Stellar Funding Group, Inc.:
(Acquired 1/28/99; Cost $438,258) (b) 444,000 4.85 5/04/99 440,172
(Acquired 12/21/98; Cost $391,278) (b) 400,000 5.00 5/27/99 395,167
(Acquired 10/01/98; Cost $288,875) (b) 300,000 5.00 6/25/99 295,167
(Acquired 12/29/98; Cost $608,524) (b) 619,000 5.12 4/27/99 613,982
(Acquired 9/21/98; Cost $487,531) (b) 500,000 5.25 3/11/99 499,271
(Acquired 11/16/98; Cost $896,672) (b) 925,000 5.25 6/14/99 910,836
Sunshine State Governmental Financing Commission 2,100,000 4.85 4/05/99 2,090,098
1,600,000 5.20 3/03/99 1,599,538
Toyota Motor Credit Company 3,500,000 4.78 5/11/99 3,467,005
Triple-A One Funding Corporation (Acquired 2/23/99; Cost $695,747) (b) 700,000 4.86 4/09/99 696,315
Tulip Funding Corporation:
(Acquired 1/27/99; Cost $1,901,756) (b) 1,925,000 4.83 4/27/99 1,910,279
(Acquired 1/04/99; Cost $592,895) (b) 600,000 4.90 4/01/99 597,468
UBS Finance, Inc. 500,000 4.81 6/07/99 493,453
2,500,000 4.99 3/31/99 2,489,604
USAA Capital Corporation 1,800,000 4.79 3/19/99 1,795,689
600,000 4.80 3/18/99 598,640
1,400,000 4.82 4/20/99 1,390,628
Unifunding, Inc. 3,200,000 4.80 4/14/99 3,181,227
Variable Funding Capital Corporation (Acquired 1/11/99; Cost $819,755) (b) 830,000 4.83 4/13/99 825,212
Vattenfall Treasury, Inc. 3,100,000 4.82 6/16/99 3,055,589
West Baton Rouge Parish, Louisiana:
(Acquired 1/06/99; Cost $750,000) (b) 750,000 4.92 5/14/99 750,000
(Acquired 2/17/99; Cost $2,950,000) (b) 2,950,000 4.92 6/10/99 2,950,000
Westpac Capital Corporation 3,100,000 4.78 7/12/99 3,045,256
Windmill Funding Corporation:
(Acquired 1/22/99; Cost $1,975,683) (b) 2,000,000 4.81 4/23/99 1,985,837
(Acquired 2/18/99; Cost $1,680,991) (b) 1,700,000 4.85 5/12/99 1,683,510
Wood Street Funding Corporation:
(Acquired 1/29/99; Cost $287,895) (b) 290,000 4.84 3/24/99 289,103
(Acquired 1/11/99; Cost $1,973,111) (b) 2,000,000 4.84 4/21/99 1,986,287
(Acquired 1/14/99; Cost $545,258) (b) 550,000 4.85 3/19/99 548,666
(Acquired 2/12/99; Cost $753,857) (b) 760,000 4.85 4/13/99 755,597
Xerox Credit Corporation 1,000,000 5.34 3/05/99 999,407
Yale University 1,200,000 4.82 5/13/99 1,188,271
Yorkshire Building Society 2,000,000 4.86 4/06/99 1,990,280
280,000 4.90 3/18/99 279,352
250,000 4.97 3/02/99 249,966
- --------------------------------------------------------------------------------------------------------------------------------
Total Commercial Paper 227,945,652
- --------------------------------------------------------------------------------------------------------------------------------
Corporate Obligations 1.6%
General Motors Acceptance Corporation Medium-Term Notes, 6.625% 1,000,000 5.14 7/07/99 1,005,120
Wachovia Bank NA Short-Term Bank Notes, 4.84% 3,100,000 4.84 7/14/99 3,100,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Corporate Obligations 4,105,120
- --------------------------------------------------------------------------------------------------------------------------------
Taxable Variable Rate Put Bonds 2.4%
Botsford General Hospital Revenue 2,000,000 4.95 3/01/99 2,000,000
Concrete Company 1,435,000 5.00 3/04/99 1,435,000
Kings Glen Apartments LLC 1,000,000 5.00 3/04/99 1,000,000
Northchase Apartments LLC 800,000 5.00 3/04/99 800,000
Radiation Oncology Partners LLP 925,000 5.00 3/04/99 925,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Taxable Variable Rate Put Bonds 6,160,000
- --------------------------------------------------------------------------------------------------------------------------------
35
</TABLE>
<PAGE>
<TABLE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) FEBRUARY 28, 1999
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG INVESTORS MONEY FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
United States Government and Agency Issues 9.4%
Federal Home Loan Bank Notes:
<S> <C> <C> <C> <C>
5.00%, Due 10/27/99 $2,000,000 5.01% 10/27/99 $ 1,999,869
5.00%, Due 1/28/00 3,000,000 5.00 1/28/00 3,000,000
5.00%, Due 2/24/00 2,000,000 5.02 2/24/00 1,999,605
5.03%, Due 10/29/99 1,500,000 5.03 10/29/99 1,500,000
5.05%, Due 2/25/00 4,000,000 5.05 2/25/00 4,000,000
5.08%, Due 3/03/00 (f) 3,000,000 5.08 3/03/00 3,000,000
5.10%, Due 3/08/00 (f) 3,000,000 5.10 3/08/00 3,000,000
5.14%, Due 3/08/00 (f) 3,600,000 5.14 3/08/00 3,600,000
Federal National Mortgage Association Medium-Term Notes, 5.04%, Due 2/23/00 2,000,000 5.02 2/23/00 2,000,374
- --------------------------------------------------------------------------------------------------------------------------------
Total United States Government and Agency Issues 24,099,848
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Total Investment in Securities 104.0% 265,809,643
Other Assets and Liabilities, Net (4.0%) (10,166,008)
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $255,643,635
================================================================================================================================
================================================================================================================================
STRONG MONEY MARKET FUND
================================================================================================================================
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
Certificates of Deposit 1.8%
Deutsche Bank AG New York, 5.66% $19,750,000 5.77% 4/14/99 $19,747,491
Royal Bank of Canada, 5.15% 14,000,000 5.18 3/21/00 13,995,738
- --------------------------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit 33,743,229
- --------------------------------------------------------------------------------------------------------------------------------
Commercial Paper 83.9%
AES Hawaii, Inc. 4,900,000 4.78 4/09/99 4,874,626
11,000,000 5.04 3/05/99 10,993,840
AES Shady Point, Inc. 6,000,000 4.76 7/16/99 5,891,313
13,800,000 4.76 7/23/99 13,537,248
AESOP Funding Corporation
(Acquired 2/16/99 - 2/19/99; Cost $18,451,273) (b) 18,575,000 4.87 4/09/99 18,477,018
Abbey National North America Corporation 10,940,000 4.72 7/20/99 10,737,756
10,760,000 4.79 4/22/99 10,685,553
Alpine Securitization Corporation
(Acquired 1/22/99; Cost $17,800,385) (b) 18,000,000 4.81 4/15/99 17,891,775
American Home Products Corporation:
(Acquired 2/05/99; Cost $5,971,276) (b) 6,050,000 4.78 5/14/99 5,990,555
(Acquired 2/08/99; Cost $2,168,679) (b) 2,200,000 4.79 5/26/99 2,174,826
(Acquired 2/09/99; Cost $4,625,712) (b) 4,680,000 4.80 5/07/99 4,638,192
(Acquired 2/09/99; Cost $5,919,200) (b) 6,000,000 4.80 5/21/99 5,935,200
American Honda Finance Corporation 12,300,000 4.81 3/12/99 12,281,939
Aon Corporation 5,525,000 4.88 3/04/99 5,522,753
6,690,000 4.88 3/23/99 6,670,049
Ascot Capital Corporation:
(Acquired 1/14/99; Cost $12,345,069) (b) 12,500,000 4.85 4/16/99 12,422,535
(Acquired 1/14/99; Cost $9,091,648) (b) 9,180,000 4.88 3/26/99 9,148,890
Asset Backed Capital Finance, Inc. (Acquired 2/23/99; Cost $992,544) (b) 1,000,000 4.88 4/19/99 993,358
Atlantis One Funding Corporation 7,780,000 4.79 5/13/99 7,704,432
9,000,000 5.02 3/26/99 8,968,625
6,000,000 5.05 3/24/99 5,980,642
Atlas Copco AB:
(Acquired 2/18/99; Cost $3,685,485) (b) 3,700,000 4.87 3/19/99 3,690,991
(Acquired 2/18/99; Cost $2,971,882) (b) 3,000,000 4.89 4/28/99 2,976,365
Banco de Credito Sao Paolo 10,000,000 4.85 6/23/99 9,846,417
Barton Capital Corporation:
(Acquired 2/08/99; Cost $2,861,728) (b) 2,885,000 4.84 4/09/99 2,869,873
(Acquired 2/09/99; Cost $8,760,208) (b) 8,828,000 4.85 4/07/99 8,783,995
(Acquired 1/12/99 - 1/25/99; Cost $5,866,814) (b) 5,937,000 4.86 4/12/99 5,903,321
(Acquired 7/01/98; Cost $3,240,911) (b) 3,375,000 5.48 3/19/99 3,365,753
Bavaria Universal Funding Corporation:
(Acquired 2/17/99; Cost $5,928,058) (b) 6,000,000 4.85 5/17/99 5,937,758
(Acquired 10/07/98; Cost $5,615,575) (b) 5,750,000 5.07 3/22/99 5,732,994
36
</TABLE>
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG MONEY MARKET FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Brazos River Authority Texas PCR $ 7,135,000 5.28% 3/09/99 $ 7,135,000
British Gas Capital, Inc. 28,000,000 5.34 3/02/99 27,995,848
CSC Enterprises 7,900,000 4.78 4/19/99 7,848,602
6,175,000 4.80 5/06/99 6,120,660
Calcasieu Parish, Inc. Louisiana IDB Environmental Revenue 18,500,000 4.89 6/16/99 18,500,000
California PCFA Environmental Improvement Revenue:
(Acquired 2/08/99; Cost $5,000,000) (b) 5,000,000 4.88 5/07/99 5,000,000
(Acquired 12/08/98; Cost $15,000,000) (b) 15,000,000 5.15 4/14/99 15,000,000
(Acquired 11/09/98; Cost $20,500,000) (b) 20,500,000 5.27 3/10/99 20,500,000
Campbell Soup Company 2,800,000 4.78 4/07/99 2,786,244
12,000,000 5.22 3/19/99 11,968,680
Centric Capital Corporation:
(Acquired 2/05/99; Cost $9,189,180) (b) 9,300,000 4.82 5/05/99 9,219,064
(Acquired 1/14/99; Cost $10,769,575) (b) 10,900,000 4.84 4/14/99 10,835,520
Certain Funding Corporation:
(Acquired 1/08/99 - 1/12/99; Cost $10,300,584) (b) 10,405,000 4.90 3/25/99 10,371,002
(Acquired 12/02/98; Cost $11,596,042) (b) 11,750,000 5.30 3/01/99 11,750,000
CIGNA Corporation 5,000,000 4.83 4/07/99 4,975,179
Cogentrix of Richmond, Inc. 7,000,000 4.85 3/24/99 6,978,310
Commonwealth Bank of Australia 9,000,000 4.75 7/27/99 8,824,250
12,000,000 5.03 3/10/99 11,984,910
2,900,000 5.08 3/15/99 2,894,271
Cooperative Association Tractor Dealers, Inc.:
Series A 13,800,000 4.82 6/29/99 13,578,280
1,900,000 4.85 4/13/99 1,888,993
3,500,000 5.07 3/12/99 3,494,578
Series B 6,600,000 4.83 5/07/99 6,540,671
7,000,000 5.02 4/06/99 6,964,860
6,200,000 5.05 3/24/99 6,179,997
323,000 5.10 3/10/99 322,588
6,600,000 5.15 3/15/99 6,586,782
Credit Suisse First Boston, Inc. (Acquired 2/05/99; Cost $16,732,136) (b) 16,950,000 4.82 5/12/99 16,786,602
Edison Asset Securitization LLC:
(Acquired 1/25/99; Cost $13,035,117) (b) 13,197,000 4.80 4/27/99 13,096,703
(Acquired 1/21/99; Cost $8,593,969) (b) 8,742,000 4.80 5/28/99 8,639,427
(Acquired 2/16/99; Cost $5,058,126) (b) 5,180,000 4.84 8/10/99 5,067,180
(Acquired 2/10/99; Cost $321,541) (b) 325,000 4.85 4/30/99 322,373
Enterprise Funding Corporation:
(Acquired 2/26/99; Cost $9,917,311) (b) 10,000,000 4.88 4/28/99 9,921,378
(Acquired 12/31/98; Cost $12,692,587) (b) 12,850,000 4.90 3/31/99 12,797,529
Equilon Enterprises LLC 13,675,000 4.83 4/05/99 13,610,784
Eureka Securitization, Inc. (Acquired 1/13/99; Cost $19,672,117) (b) 19,900,000 4.85 4/08/99 19,798,123
First Data Corporation 4,350,000 4.96 3/09/99 4,345,205
Ford Motor Credit Company 13,450,000 5.19 3/12/99 13,428,671
Ford Motor Credit Company Puerto Rico, Inc. 7,675,000 4.83 4/23/99 7,620,424
Formosa Plastics Corporation USA 3,600,000 4.84 5/07/99 3,567,572
3,700,000 4.86 4/15/99 3,677,523
17,400,000 5.00 3/05/99 17,390,333
Fountain Square Commercial Corporation:
(Acquired 1/27/99; Cost $1,035,801) (b) 1,061,000 4.75 7/26/99 1,040,421
(Acquired 1/26/99 - 1/27/99; Cost $7,503,684) (b) 7,595,000 4.82 4/26/99 7,538,054
(Acquired 2/02/99; Cost $5,410,961) (b) 5,475,000 4.84 4/30/99 5,430,835
(Acquired 2/10/99; Cost $1,531,415) (b) 1,550,000 4.85 5/10/99 1,535,383
Franklin Resources, Inc.:
(Acquired 1/05/99; Cost $4,948,806) (b) 5,000,000 4.85 3/22/99 4,985,854
(Acquired 12/07/98 - 12/11/98; Cost $10,616,895) (b) 10,750,000 5.05 3/08/99 10,739,451
Frigate Funding Corporation:
(Acquired 1/25/99; Cost $3,670,530) (b) 3,700,000 4.86 3/25/99 3,688,012
(Acquired 1/20/99; Cost $10,903,276) (b) 11,000,000 4.87 3/26/99 10,962,799
GTE Corporation:
(Acquired 2/10/99; Cost $5,616,439) (b) 5,650,000 4.86 3/26/99 5,630,931
(Acquired 2/16/99; Cost $8,707,212) (b) 8,750,000 4.89 3/24/99 8,722,664
General Electric Capital Corporation 1,330,000 4.75 7/16/99 1,305,958
3,320,000 4.79 6/04/99 3,278,034
14,000,000 4.80 5/20/99 13,850,667
4,000,000 5.33 3/15/99 3,991,709
37
</TABLE>
<PAGE>
<TABLE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) FEBRUARY 28, 1999
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG MONEY MARKET FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
General Mills, Inc. $ 100 4.54% Upon Demand $ 100
General Motors Acceptance Corporation 3,800,000 4.85 4/06/99 3,781,570
Goldman Sachs Group LP 7,200,000 4.97 4/23/99 7,147,318
14,000,000 5.05 3/16/99 13,970,542
Greenwich Asset Funding, Inc. (Acquired 2/23/99; Cost $4,753,653) (b) 4,782,000 4.85 4/08/99 4,757,519
Greenwich Funding Corporation
(Acquired 1/26/99 - 2/17/99; Cost $4,941,685) (b) 5,000,000 4.81 4/29/99 4,960,560
Greyhawk Funding LLC (Acquired 1/22/99; Cost $18,168,906) (b) 18,400,000 4.81 4/26/99 18,262,327
Gulf Coast IDA Environmental Facilities Revenue 14,000,000 5.25 3/04/99 14,000,000
Gulf Coast Waste Disposal Authority PCR 4,400,000 4.87 6/11/99 4,400,000
4,600,000 5.27 3/09/99 4,600,000
Halifax PLC 22,500,000 4.79 7/06/99 22,119,794
5,000,000 4.87 4/06/99 4,975,650
Harley-Davidson Funding Corporation
(Acquired 2/17/99; Cost $11,203,547) (b) 11,280,000 4.88 4/08/99 11,221,895
Henkel Corporation:
(Acquired 1/15/99; Cost $11,740,333) (b) 12,000,000 4.75 6/28/99 11,811,583
(Acquired 2/03/99; Cost $1,805,970) (b) 1,850,000 4.76 8/02/99 1,812,330
(Acquired 2/03/99; Cost $6,892,133) (b) 7,050,000 4.77 7/22/99 6,916,420
(Acquired 10/05/98; Cost $1,954,625) (b) 2,000,000 4.95 3/19/99 1,995,050
ING America Insurance Holdings, Inc. 8,000,000 4.77 8/02/99 7,836,760
3,875,000 4.87 4/26/99 3,845,645
5,500,000 5.12 3/22/99 5,483,573
IPALCO Enterprises:
(Acquired 1/26/99; Cost $3,256,000) (b) 3,300,000 4.80 5/06/99 3,270,960
(Acquired 1/13/99; Cost $1,973,490) (b) 2,000,000 4.82 4/22/99 1,986,076
(Acquired 12/11/98; Cost $11,155,181) (b) 11,300,000 5.07 3/12/99 11,282,494
(Acquired 12/18/98; Cost $7,912,049) (b) 8,000,000 5.14 3/05/99 7,995,431
International Securitization Corporation:
(Acquired 1/26/99; Cost $3,936,666) (b) 4,000,000 4.79 5/25/99 3,954,761
(Acquired 1/22/99; Cost $5,435,934) (b) 5,500,000 4.82 4/19/99 5,463,917
(Acquired 1/25/99; Cost $4,365,026) (b) 4,400,000 4.85 3/25/99 4,385,773
(Acquired 2/24/99; Cost $8,892,087) (b) 9,000,000 4.85 5/24/99 8,898,150
Johnson & Johnson (Acquired 10/29/98; Cost $17,704,760) (b) 18,000,000 4.84 3/01/99 18,000,000
Kitty Hawk Funding Corporation (Acquired 1/05/99; Cost $16,222,575) (b) 16,400,000 4.93 3/25/99 16,346,099
Knight-Ridder, Inc. (Acquired 2/17/99; Cost $1,992,186) (b) 2,000,000 4.85 3/18/99 1,995,419
LG&E Capital Corporation:
(Acquired 12/09/98; Cost $12,046,354) (b) 12,500,000 4.88 9/03/99 12,185,156
(Acquired 12/15/98; Cost $7,773,819) (b) 7,900,000 5.00 4/09/99 7,857,208
Leland Stanford Junior University 4,150,000 4.80 4/12/99 4,126,760
2,000,000 4.80 8/13/99 1,956,000
3,250,000 4.90 5/21/99 3,214,169
Lloyds Bank PLC 3,870,000 4.85 4/01/99 3,853,837
Market Street Funding Corporation:
(Acquired 2/12/99; Cost $14,285,540) (b) 14,400,000 4.85 4/12/99 14,318,520
(Acquired 2/17/99; Cost $6,468,345) (b) 6,500,000 4.87 3/25/99 6,478,897
Martin Marietta Materials, Inc.:
(Acquired 2/12/99; Cost $11,308,639) (b) 11,400,000 4.89 4/12/99 11,334,963
(Acquired 2/09/99; Cost $3,977,040) (b) 4,000,000 4.92 3/23/99 3,987,973
(Acquired 2/26/99; Cost $1,989,044) (b) 2,000,000 4.93 4/07/99 1,989,866
Merrill Lynch & Company, Inc. 8,300,000 4.75 4/09/99 8,257,290
Minolta Corporation 2,580,000 4.88 3/02/99 2,579,650
JP Morgan & Company, Inc. 8,000,000 4.80 5/10/99 7,925,333
2,000,000 4.83 7/12/99 1,964,312
5,850,000 4.85 3/30/99 5,827,144
Morgan Stanley, Dean Witter & Company 12,000,000 4.78 5/05/99 11,896,433
5,000,000 4.81 5/17/99 4,948,560
Motorola, Inc. 1,000,000 4.95 4/01/99 995,738
Nationwide Building Society 15,000,000 4.84 5/06/99 14,866,900
6,000,000 5.06 3/11/99 5,991,567
New York Life Capital Corporation:
(Acquired 12/11/98; Cost $6,419,761) (b) 6,500,000 5.05 3/09/99 6,492,706
(Acquired 11/09/98; Cost $981,653) (b) 1,000,000 5.12 3/18/99 997,582
Oakland-Alameda County, California Coliseum Authority 19,400,000 4.87 3/04/99 19,400,000
Oklahoma State Industrial Finance Authority 9,500,000 5.00 5/03/99 9,500,000
Old Line Funding Corporation:
(Acquired 2/01/99; Cost $9,931,292) (b) 10,000,000 4.85 3/24/99 9,969,014
(Acquired 2/18/99; Cost $5,194,565) (b) 5,232,000 4.86 4/12/99 5,202,335
(Acquired 2/25/99; Cost $5,990,260) (b) 6,000,000 4.87 3/09/99 5,993,507
38
</TABLE>
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG MONEY MARKET FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PACCAR Financial Corporation $ 8,000,000 4.77% 4/26/99 $ 7,940,640
9,000,000 4.77 5/06/99 8,921,295
5,500,000 4.80 5/20/99 5,441,333
Peacock Funding Corporation:
(Acquired 1/22/99 - 1/27/99; Cost $5,721,528) (b) 5,800,000 4.82 5/04/99 5,750,300
(Acquired 2/04/99; Cost $3,741,298) (b) 3,802,000 4.83 6/03/99 3,754,050
(Acquired 10/26/98 - 12/21/98; Cost $7,423,671) (b) 7,534,000 5.10 3/15/99 7,519,067
(Acquired 11/13/98; Cost $3,926,289) (b) 4,000,000 5.35 3/17/99 3,990,489
Pitney Bowes Credit Corporation 212,700 4.54 Upon Demand 212,700
Prudential Finance Jersey, Ltd. 3,000,000 4.83 7/15/99 2,945,260
7,000,000 4.83 8/19/99 6,839,403
Questar Corporation:
(Acquired 2/22/99; Cost $5,954,116) (b) 6,000,000 4.83 4/20/99 5,959,750
(Acquired 2/26/99; Cost $5,108,285) (b) 5,150,000 4.86 4/27/99 5,110,371
Repeat Offering Securitization Entity, Inc.
(Acquired 2/26/99; Cost $22,913,229) (b) 23,200,000 4.89 5/28/99 22,922,683
SAFECO Credit Corporation 2,960,000 4.90 3/11/99 2,955,971
12,800,000 4.90 3/29/99 12,751,218
1,250,000 5.13 4/15/99 1,241,984
Sara Lee Corporation 546,000 4.54 Upon Demand 546,000
Sigma Finance, Inc.:
(Acquired 1/12/99 - 1/15/99; Cost $5,134,944) (b) 5,200,000 4.87 4/15/99 5,168,328
(Acquired 1/04/99; Cost $14,342,176) (b) 14,500,000 4.96 3/24/99 14,454,051
Society of New York Hospital Fund, Inc. 3,200,000 5.23 3/08/99 3,196,746
Spintab-Swedmortgage AB 20,000,000 5.03 4/15/99 19,874,250
Stellar Funding Group, Inc.:
(Acquired 12/21/98; Cost $2,324,190) (b) 2,376,000 5.00 5/27/99 2,347,290
(Acquired 12/31/98; Cost $7,364,889) (b) 7,458,000 5.05 3/30/99 7,427,660
(Acquired 9/21/98; Cost $7,898,006) (b) 8,100,000 5.25 3/11/99 8,088,188
(Acquired 9/23/98; Cost $7,843,355) (b) 8,056,000 5.25 3/23/99 8,030,154
Sunshine State Governmental Financing Commission 4,000,000 4.85 4/05/99 3,981,139
8,200,000 5.20 3/03/99 8,197,631
Toyota Motor Credit Company 11,325,000 4.78 5/10/99 11,219,740
10,000,000 4.78 5/11/99 9,905,728
Triple-A One Funding Corporation:
(Acquired 2/23/99; Cost $9,740,465) (b) 9,800,000 4.86 4/09/99 9,748,403
(Acquired 2/18/99; Cost $12,002,226) (b) 12,025,000 4.87 3/04/99 12,020,120
Tulip Funding Corporation:
(Acquired 1/27/99; Cost $11,805,704) (b) 11,950,000 4.83 4/27/99 11,858,612
(Acquired 2/23/99; Cost $10,813,182) (b) 10,900,000 4.86 4/23/99 10,822,011
(Acquired 1/04/99; Cost $395,263) (b) 400,000 4.90 4/01/99 398,312
UBS Finance, Inc. 4,700,000 4.81 6/07/99 4,638,459
6,000,000 4.82 7/13/99 5,892,353
10,000,000 4.99 3/31/99 9,958,417
USAA Capital Corporation 5,000,000 4.80 3/18/99 4,988,667
19,700,000 4.82 4/20/99 19,568,119
Unifunding, Inc. 14,100,000 4.80 4/14/99 14,017,280
Variable Funding Capital Corporation:
(Acquired 1/15/99; Cost $9,633,244) (b) 9,750,000 4.79 4/15/99 9,691,622
(Acquired 1/25/99; Cost $5,571,568) (b) 5,640,000 4.80 4/26/99 5,597,888
(Acquired 1/27/99; Cost $1,579,930) (b) 1,587,000 4.86 3/01/99 1,587,000
Vattenfall Treasury, Inc. 21,900,000 4.82 6/16/99 21,586,258
Washington Post Company (Acquired 10/05/98; Cost $1,956,550) (b) 2,000,000 4.95 3/12/99 1,996,975
West Baton Rouge Parish, Louisiana:
(Acquired 1/06/99; Cost $9,800,000) (b) 9,800,000 4.92 5/14/99 9,800,000
(Acquired 2/17/99; Cost $5,950,000) (b) 5,950,000 4.92 6/10/99 5,950,000
Westpac Capital Corporation 18,900,000 4.78 7/12/99 18,566,237
Whiting, Indiana Industrial Sewage and Solid Waste Disposal Revenue 5,000,000 4.91 5/12/99 5,000,000
Windmill Funding Corporation:
(Acquired 1/22/99; Cost $14,305,919) (b) 14,482,000 4.81 4/23/99 14,379,447
(Acquired 1/29/99; Cost $5,962,087) (b) 6,000,000 4.84 3/17/99 5,987,093
Wood Street Funding Corporation:
(Acquired 1/29/99; Cost $2,928,583) (b) 2,950,000 4.84 3/24/99 2,940,878
(Acquired 1/11/99; Cost $11,345,389) (b) 11,500,000 4.84 4/21/99 11,421,148
(Acquired 1/14/99; Cost $3,101,030) (b) 3,128,000 4.85 3/19/99 3,120,415
Xerox Credit Corporation 15,000,000 5.33 3/03/99 14,995,558
13,100,000 5.34 3/05/99 13,092,227
39
</TABLE>
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<TABLE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) FEBRUARY 28, 1999
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================================================================================================================================
STRONG MONEY MARKET FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Yale University $ 1,575,000 4.82% 5/13/99 $ 1,559,606
Yorkshire Building Society 4,600,000 4.86 4/06/99 4,577,644
12,750,000 4.97 3/02/99 12,748,239
- --------------------------------------------------------------------------------------------------------------------------------
Total Commercial Paper 1,616,435,023
- --------------------------------------------------------------------------------------------------------------------------------
Corporate Obligations 1.3%
General Motors Acceptance Corporation Medium-Term Notes, 6.625% 3,000,000 6.63 7/07/99 3,015,360
Wachovia Bank NA Short-Term Bank Notes, 4.84% 22,900,000 4.84 7/14/99 22,900,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Corporate Obligations 25,915,360
- --------------------------------------------------------------------------------------------------------------------------------
Taxable Variable Rate Put Bonds 7.0%
Alabama State IDA - S-Tool Project 6,500,000 5.00 3/04/99 6,500,000
Aurora, Kane & DuPage Counties, Illinois IDR 1,400,000 5.00 3/04/99 1,400,000
Botsford General Hospital Revenue 4,400,000 4.95 3/01/99 4,400,000
Chattanooga, Tennessee IDB Revenue - Radisson Read Project 3,660,000 5.66 3/04/99 3,660,000
Community Health Systems, Inc. 3,200,000 5.05 3/03/99 3,200,000
Concrete Company 2,365,000 5.00 3/04/99 2,365,000
Health Midwest Ventures Group, Inc. 8,050,000 4.95 3/03/99 8,050,000
Illinois Housing Development Revenue 14,345,000 5.04 3/01/99 14,345,000
KinderCare Learning Centers, Inc. 4,000,000 5.00 3/03/99 4,000,000
Kings Glen Apartments LLC 3,325,000 5.00 3/04/99 3,325,000
Mississippi Business Finance Corporation IDR - GE Plastics Project 2,500,000 4.92 3/01/99 2,500,000
Mississippi Business Finance Corporation IDR - Morton International, Inc. 14,500,000 5.04 3/01/99 14,500,000
Montgomery County, Pennsylvania IDA Revenue 3,165,000 5.00 3/03/99 3,165,000
New Jersey EDA EDR - MSNBC/CNBC 8,600,000 4.92 3/01/99 8,600,000
New Jersey Sports & Exposition Authority Sports Complex
Subordinated Refunding Revenue 21,275,000 5.04 3/01/99 21,275,000
Northchase Apartments LLC 5,800,000 5.00 3/04/99 5,800,000
Radiation Oncology Partners LLP 2,915,000 5.00 3/04/99 2,915,000
South Carolina Jobs - EDA Health Facilities Revenue 3,000,000 5.46 3/04/99 3,000,000
Stanislaus County, California Pension Obligations 9,655,000 5.04 3/01/99 9,655,000
Thayer Properties LLC 3,455,000 5.00 3/04/99 3,455,000
Tifton Mall, Inc. 3,800,000 5.00 3/04/99 3,800,000
Virginia HDA MFHR 1,980,000 5.04 3/01/99 1,980,000
WLB LLC 2,000,000 5.00 3/04/99 2,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Taxable Variable Rate Put Bonds 133,890,000
- --------------------------------------------------------------------------------------------------------------------------------
United States Government and Agency Issues 9.0%
Federal Home Loan Bank Notes:
5.00%, Due 1/28/00 20,000,000 5.00 1/28/00 20,000,000
5.00%, Due 2/24/00 7,000,000 5.00 2/24/00 6,998,619
5.00%, Due 10/27/99 27,575,000 5.01 10/27/99 27,573,187
5.03%, Due 10/29/99 23,500,000 5.03 10/29/99 23,500,000
5.05%, Due 2/25/00 23,000,000 5.05 2/25/00 23,000,000
5.08%, Due 3/03/00 (f) 18,500,000 5.08 3/03/00 18,500,000
5.10%, Due 3/08/00 (f) 18,500,000 5.10 3/08/00 18,500,000
5.14%, Due 3/08/00 (f) 18,200,000 5.14 3/08/00 18,200,000
Federal National Mortgage Association Medium-Term Notes, 5.04%, Due 2/23/00 17,000,000 5.04 2/23/00 17,003,177
- --------------------------------------------------------------------------------------------------------------------------------
Total United States Government and Agency Issues 173,274,983
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Total Investment in Securities 103.0% 1,983,258,595
Other Assets and Liabilities, Net (3.0%) (57,069,252)
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $1,926,189,343
================================================================================================================================
40
</TABLE>
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG MUNICIPAL MONEY MARKET FUND
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
Municipal Bonds 13.8%
ARIZONA 0.1%
<S> <C> <C> <C> <C>
Phoenix, Arizona 4.20% IDA MFHR - Roosevelt Historic Redevelopment Project $ 2,600,000 4.20% 6/01/99 $ 2,600,000
ARKANSAS 0.3%
Pulaski County, Arkansas 4.125% Public Facilities Board MFHR -
Little Rock Residential Project 7,250,000 4.13 4/01/99 7,250,000
CALIFORNIA 1.4%
Humbolt County, California 4.375% TRAN 17,000,000 4.01 7/07/99 17,021,461
Montebello, California 4.05% TRAN 4,900,000 4.00 6/30/99 4,900,766
Municipal Tax-Exempt 3.10% Trust Certificates 7,500,000 3.15 2/07/00 7,496,856
------------
29,419,083
CONNECTICUT 0.3%
Connecticut Resources Recovery Authority Resources Recovery Revenue-
American Refunding Fuel Project (e) 6,750,000 3.90 11/15/99 6,745,213
ILLINOIS 2.4%
Lakemoor, Illinois MFMR Mortgage - Lakemoor Apartments Project (e) 50,000,000 4.55 2/24/00 50,000,000
KENTUCKY 4.2%
Kentucky Governmental Agencies Cash Flow Borrowing Program COP 4.40% TRAN 88,538,995 4.01 6/30/99 88,651,719
MINNESOTA 0.4%
Oak Park Heights, Minnesota Elderly Housing Revenue -
Boutwells Landing Project (e) 8,000,000 4.46 4/19/99 8,008,410
NEW MEXICO 0.1%
Sante Fe County, New Mexico MFHR - Villa Grande Apartments Project (e) 3,000,000 4.00 8/01/99 3,000,000
NEW YORK 1.1%
Hempstead, New York IDA Resource Recovery Revenue - Browning Ferris
Industries Credit Corporation Project (e) 10,060,000 4.00 12/01/99 10,015,290
Syracuse, New York 4.50% RAN 13,200,000 4.01 6/30/99 13,221,147
------------
23,236,437
OKLAHOMA 0.4%
Oklahoma County, Oklahoma 10.25% Industrial Authority Revenue - Epworth
Villa Project (Pre-Refunding at $102 on 4/01/99) 2,860,000 3.68 4/01/99 2,880,941
Washington County, Oklahoma 8.50% Medical Authority Hospital Revenue -
Jane Phillips Episcopal Hospital Project (Pre-Refunding at $102 on 5/01/99) 4,965,000 2.63 5/01/99 5,019,157
------------
7,900,098
MULTIPLE STATES 3.1%
USBI Trust Pass-Thru Certificates:
Series 1998-C (e) 29,315,000 4.00 9/01/99 29,315,000
Series 1998-D (e) 34,750,000 4.25 12/01/99 34,750,000
------------
64,065,000
- ------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds 290,875,960
- ------------------------------------------------------------------------------------------------------------------------------
Municipal Commercial Paper 1.7%
KENTUCKY 0.6%
Maysville, Kentucky Solid Waste Disposal Facilities Revenue -
Inland Container Corporation Project 12,000,000 3.90 4/14/99 12,000,000
TEXAS 1.1%
Angelina and Neches River Authority PCR - Temple-Inland Forest
Products Corporation Project 2,600,000 3.90 4/14/99 2,600,000
Angelina and Neches River Authority Solid Waste Disposal Revenue -
Temple Eastex, Inc. Project 5,550,000 3.90 4/14/99 5,550,000
Port Development Corporation Marine Terminal Transportation Revenue -
Mitsui & Company USA, Inc. Project 15,100,000 4.25 3/04/99 15,100,000
------------
23,250,000
- ------------------------------------------------------------------------------------------------------------------------------
Total Municipal Commercial Paper 35,250,000
- ------------------------------------------------------------------------------------------------------------------------------
Annual Variable Rate Put Bonds 3.9%
ALABAMA 0.5%
Mobile, Alabama IDB Solid Waste Disposal Revenue -
International Paper Company Project 8,400,000 3.85 3/01/00 8,400,000
Selma, Alabama IDB Solid Waste Disposal Revenue -
International Paper Company Project 2,900,000 4.20 9/01/99 2,900,000
------------
11,300,000
41
</TABLE>
<PAGE>
<TABLE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) FEBRUARY 28, 1999
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG MUNICIPAL MONEY MARKET FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA 0.6%
District of Columbia Supplemental Student Loan Revenue -
<S> <C> <C> <C> <C>
The Consern Loan Program $11,800,000 4.50% 7/01/99 $11,800,000
MAINE 0.2%
Jay, Maine Solid Waste Disposal Revenue - International
Paper Company Project 3,575,000 4.20 9/01/99 3,575,000
MASSACHUSETTS 0.4%
Municipal Securities Trust Class A Certificates - Series 9 8,720,000 4.00 5/05/99 8,720,000
MISSISSIPPI 0.1%
Jones County, Mississippi Solid Waste Disposal Revenue -
International Paper Company Project 2,900,000 4.20 9/01/99 2,900,000
PUERTO RICO 0.6%
Puerto Rico Industrial, Medical and Environmental PCFA Revenue -
Union Carbide Corporation Project 12,955,000 4.25 3/15/99 12,955,000
SOUTH CAROLINA 0.5%
Georgetown County, South Carolina PCR - International Paper Company Project 10,000,000 4.10 9/01/99 10,000,000
TENNESSEE 0.3%
Brownsville, Tennessee IDB IDR - Dynametal Technologies, Inc. Project 7,000,000 4.20 6/01/99 7,000,000
TEXAS 0.3%
Brazos River Authority Collateralized PCR Refunding - Texas Utilities
Electric Company Project 6,655,000 4.19 6/18/99 6,654,133
MULTIPLE STATES 0.4%
Eastern States Tax-Exempt Mortgage Bond Trust 4,575,000 5.19 3/01/00 4,575,000
Puttable Floating Option Tax-Exempt Receipts, Series PPT-7 2,600,000 3.90 3/11/99 2,600,000
-----------
7,175,000
- ------------------------------------------------------------------------------------------------------------------------------
Total Annual Variable Rate Put Bonds 82,079,133
- ------------------------------------------------------------------------------------------------------------------------------
Semi-Annual Variable Rate Put Bonds 0.4%
KENTUCKY 0.4%
Scottsville, Kentucky IDR - Sumitomo Electric Wiring Systems, Inc. Project 8,000,000 4.75 5/01/99 8,000,000
WISCONSIN 0.0%
Milwaukee, Wisconsin IDR - Wayne C. Oldenburg Project 525,000 4.25 8/01/99 525,000
- ------------------------------------------------------------------------------------------------------------------------------
Total Semi-Annual Variable Rate Put Bonds 8,525,000
- ------------------------------------------------------------------------------------------------------------------------------
Quarterly Variable Rate Put Bonds 1.0%
MINNESOTA 0.2%
Minneapolis, Minnesota Revenue - Minneapolis Institute of the Arts Project 4,825,000 3.63 4/01/99 4,825,000
OKLAHOMA 0.8%
Oklahoma County, Oklahoma Industrial Authority Revenue Refunding - Baptist
General Convention of the State of Oklahoma Retirement Center Project 17,100,000 4.50 3/01/99 17,100,000
- ------------------------------------------------------------------------------------------------------------------------------
Total Quarterly Variable Rate Put Bonds 21,925,000
- ------------------------------------------------------------------------------------------------------------------------------
Monthly Variable Rate Put Bonds 1.0%
ARKANSAS 0.2%
Jacksonville, Arkansas Revenue - Regal Ware, Inc. Project 4,000,000 3.40 4/01/99 4,000,000
ILLINOIS 0.1%
Green Leaf Ventures, Inc. Tax-Exempt Bond Grantor Trust 2,000,000 4.55 4/01/99 2,000,000
MARYLAND 0.3%
Prince George's County, Maryland EDR Refunding -
Capital View II LP Facility 6,380,000 4.45 4/01/99 6,380,000
OHIO 0.1%
Blue Bell Tax-Exempt Bond Grantor Trust 1,712,705 4.30 4/01/99 1,712,705
MULTIPLE STATES 0.3%
GAF Corporation Tax-Exempt Bond Grantor Trust 4,300,000 4.00 4/01/99 4,300,000
Johnson Controls, Inc. Tax-Exempt Bond Grantor Trust 2,345,000 4.50 4/01/99 2,345,000
-----------
6,645,000
- ------------------------------------------------------------------------------------------------------------------------------
Total Monthly Variable Rate Put Bonds 20,737,705
- ------------------------------------------------------------------------------------------------------------------------------
42
</TABLE>
<PAGE>
<TABLE>
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================================================================================================================================
STRONG MUNICIPAL MONEY MARKET FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
Weekly Variable Rate Put Bonds 71.4%
ALABAMA 2.1%
Alabama IDA IDR:
<S> <C> <C> <C> <C>
Research Genetics, Inc. Project $ 2,880,000 3.40% 3/08/99 $ 2,880,000
Whitesell Project 4,650,000 3.40 3/08/99 4,650,000
Athens, Alabama IDB Revenue - Coilplus-Alabama, Inc. Project 8,000,000 3.40 3/08/99 8,000,000
Birmingham, Alabama Baptist Medical Center Special Care Facilities Financing
Authority Revenue - Methodist Home for the Aging Project 11,440,000 3.35 3/08/99 11,440,000
Bridgeport, Alabama IDB IDR - Beaulieu Nylon, Inc. Project 10,000,000 3.70 3/08/99 10,000,000
Madison County, Alabama MFHR Refunding:
Autumn Wood Project 2,840,000 3.45 3/08/99 2,840,000
Pinehurst Project 1,190,000 3.45 3/08/99 1,190,000
Montgomery, Alabama IDB IDR - Asphalt Contractors, Inc. Project 1,200,000 3.40 3/08/99 1,200,000
Pell, Alabama IDB IDR - Kinder/Gorbel Project 1,785,000 3.30 3/08/99 1,785,000
------------
43,985,000
ARIZONA 0.9%
Chandler, Arizona IDA MFHR - Greentree Place Apartments Project 6,390,000 5.43 3/08/99 6,390,000
Chandler, Arizona Street and Highway User Revenue -
Municipal Securities Trust 1,000,000 3.20 3/08/99 1,000,000
Glendale, Arizona Union High School District Number 205 -
Municipal Securities Trust 2,600,000 3.20 3/08/99 2,600,000
Maricopa County, Arizona Union High School District Number 93,
Cave Creek - Municipal Securities Trust 1,500,000 3.20 3/08/99 1,500,000
Peoria, Arizona Municipal Development Authority, Inc. Municipal
Facilities Revenue - Municipal Securities Trust 2,750,000 3.20 3/08/99 2,750,000
Pima County, Arizona United School District Number 1, Tucson -
Municipal Securities Trust 3,000,000 3.20 3/08/99 3,000,000
Scottsdale, Arizona IDA Hospital Revenue - Municipal Securities Trust 1,250,000 3.20 3/08/99 1,250,000
------------
18,490,000
ARKANSAS 0.3%
Hope, Arkansas IDR - Champion Parts, Inc. Project 1,100,000 3.20 3/08/99 1,100,000
Searcy, Arkansas IDR - Yarnell Ice Cream Company, Inc. Project 2,600,000 3.15 3/08/99 2,600,000
Trumann, Arkansas IDR - Roach Manufacturing Corporation Project 2,000,000 3.15 3/08/99 2,000,000
------------
5,700,000
CALIFORNIA 7.1%
California PCFA PCR Resource Recovery - Wadham Energy Project:
Series B 11,695,000 3.45 3/08/99 11,695,000
Series C 5,200,000 3.45 3/08/99 5,200,000
Glenn, California IDA IDR - Land O' Lakes, Inc. Project 1,900,000 3.25 3/08/99 1,900,000
Los Angeles, California Community Redevelopment Agency MFHR Trusts 11,000,000 3.25 3/08/99 11,000,000
Los Angeles, California MFHR - Oakwood Apartments Project 3,000,000 4.30 3/08/99 3,000,000
Los Angeles County, California IDA IDR - Goldberg & Solovy
Foods, Inc. Project 2,825,000 4.65 3/08/99 2,825,000
Macon Trust Pooled Certificates 77,405,000 3.17 3/08/99 77,405,000
Ontario, California IDA IDR - P & S Development Project 2,650,000 3.85 3/08/99 2,650,000
Ontario, California MFMR Redevelopment Agency - Mission Oaks Project 7,770,000 3.55 3/08/99 7,770,000
Oxnard, California IDA IDR - O.G. Dehydrated, Inc. Project 3,050,000 3.32 3/08/99 3,050,000
Paramount, California Housing Authority MFHR Refunding -
Century Place Apartments Project 8,500,000 3.59 3/08/99 8,500,000
San Bernardino County, California COP - 1992 Justice Center/Airport
Improvements Refunding Project 1,960,000 3.55 3/08/99 1,960,000
Yolo County, California MFHR - Primero Grove Student Apartments Project 11,715,000 3.30 3/08/99 11,715,000
------------
148,670,000
COLORADO 1.0%
Aurora, Colorado IDR - Optima Batteries, Inc. Project 3,430,000 3.25 3/08/99 3,430,000
Colorado Agricultural Development Authority IDR -
Royal Crest Dairy, Inc. Project 6,000,000 3.25 3/08/99 5,998,800
Colorado HFA EDR - NTA Leasing Company Project 2,100,000 3.45 3/08/99 2,100,000
Jefferson County, Colorado IDR - Accutronics, Inc. Project 2,175,000 3.45 3/08/99 2,175,000
Lakewood, Colorado IDR - Verden Associates-Holiday Inn Project 2,950,000 3.50 3/08/99 2,950,000
Westminster, Colorado IDR - Lifecare International Project 4,400,000 3.35 3/08/99 4,400,000
------------
21,053,800
DELAWARE 4.1%
Delaware EDA Industrial Revenue - Orient Chemical Corporation Project 3,500,000 4.15 3/08/99 3,500,000
Delaware EDA Revenue - Hospital Billing Project 82,000,000 3.05 3/08/99 82,000,000
------------
85,500,000
FLORIDA 1.5%
Bay County, Florida Revenue - Methodist Homes Project 3,765,000 3.35 3/08/99 3,765,000
Brevard County, Florida IDR - US Space Camp Foundation Project 3,540,000 3.35 3/08/99 3,540,000
Broward County, Florida HFA MFHR - Sawgrass Pines Apartments Project 12,000,000 3.75 3/08/99 12,000,000
Dade County, Florida IDA IDR - Engelhard/ICC Project 8,500,000 3.50 3/08/99 8,500,000
Ithaka Partners II Trust Certificates 4,317,077 3.35 3/08/99 4,317,077
------------
32,122,077
43
</TABLE>
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<TABLE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) FEBRUARY 28, 1999
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG MUNICIPAL MONEY MARKET FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
GEORGIA 1.6%
<S> <C> <C> <C> <C>
Bremen, Georgia Development Authority IDR - HL-A Company, Inc. Project $ 9,000,000 4.25% 3/08/99 $ 9,000,000
Cherokee County, Georgia IDA Revenue - Piolax Corporation Project 7,000,000 4.45 3/08/99 7,000,000
Fulton County, Georgia Development Authority IDR - STO Corporation Project 3,200,000 3.35 3/08/99 3,200,000
Lee County, Georgia Development Authority Revenue -
Woodgrain Millwork, Inc. Project 6,000,000 3.45 3/08/99 6,000,000
Newton County, Georgia IDA IDR - Komatsu Forklift USA, Inc. Project 7,500,000 4.35 3/08/99 7,500,000
Savannah, Georgia EDA IDR - Savannah Steel & Metal Company Project 1,405,000 3.35 3/08/99 1,405,000
-----------
34,105,000
HAWAII 0.5%
Hawaii Housing Finance and Development Corporation Rental Housing
System Revenue 11,000,000 4.40 3/08/99 11,000,000
ILLINOIS 2.6%
Arlington Heights, Illinois MFHR Refunding - Dunton Tower Apartments Project 7,050,000 3.85 3/08/99 7,050,000
Carol Stream, Illinois IDR - MI Enterprises Project 2,450,000 3.25 3/08/99 2,450,000
Hazel Crest, Illinois Retirement Center Revenue - Waterford Estates Project 2,890,000 4.15 3/08/99 2,890,000
Hazel Crest, Illinois Retirement Center Revenue - Waterford Estates Project 735,000 4.15 3/08/99 735,000
Illinois DFA IDR:
Homak Manufacturing Company, Inc. Project 6,155,000 3.25 3/08/99 6,155,000
Icon Metalcraft, Inc. Project 2,620,000 3.25 3/08/99 2,620,000
Lakemoor, Illinois MFHR - Lakemoor Apartments Project:
Series A 4,595,486 3.25 3/08/99 4,595,486
Series C 25,000,000 3.25 3/08/99 25,000,000
Springfield, Illinois Airport Authority - Allied-Signal, Inc. Project 4,375,000 3.50 3/08/99 4,375,000
-----------
55,870,486
INDIANA 0.3%
Ashley, Indiana EDR - Trin, Inc. Project 4,000,000 4.25 3/08/99 4,000,000
Brownsburg, Indiana EDR - Zanetis Enterprises Project 3,000,000 3.30 3/08/99 3,000,000
-----------
7,000,000
IOWA 0.8%
Cedar Rapids, Iowa IDR Refunding First Program - Columbus McKinnon
Corporation Project 825,000 3.75 3/08/99 825,000
Indianola, Iowa Health Care Facility Revenue Refunding -
The Village Project 5,690,000 3.20 3/08/99 5,690,000
Iowa Finance Authority IDR - First Cooperative Association Project 3,500,000 3.15 3/08/99 3,500,000
West Des Moines, Iowa Revenue - Woodgrain Millwork, Inc. Project 6,700,000 3.45 3/08/99 6,700,000
-----------
16,715,000
KANSAS 0.9%
Kansas City, Kansas Private Activity Revenue -
Ex-L-Tube of Kansas, Inc. Project 4,521,000 3.35 3/08/99 4,521,000
Kansas DFA MFHR - Trails of Garden City and Cottonwood of Liberal Projects 4,740,000 3.35 3/08/99 4,740,000
Lawrence, Kansas IDR - Prosoco Project 5,800,000 3.25 3/08/99 5,800,000
Osage City, Kansas Industrial Revenue - Marley Continental
Homes of Kansas Project 4,800,000 3.28 3/08/99 4,800,000
-----------
19,861,000
KENTUCKY 1.0%
Daviess County, Kentucky MFHR Refunding - Park Regency Apartments Project 4,155,000 3.25 3/08/99 4,155,000
Hancock County, Kentucky Solid Waste Disposal Revenue - NSA, Ltd. Project 7,815,000 3.20 3/08/99 7,815,000
Somerset, Kentucky IBR - Tibbals Flooring Company Project 10,000,000 4.17 3/08/99 10,000,000
-----------
21,970,000
LOUISIANA 0.9%
New Orleans, Louisiana Aviation Board Revenue - Passenger
Facility Charge Project 18,760,000 3.25 3/08/99 18,760,000
MARYLAND 0.8%
Howard County, Maryland MFHR 10,827,000 3.32 3/08/99 10,827,000
Washington County, Maryland EDR - Tandy Project 5,100,000 4.00 3/08/99 5,100,000
-----------
15,927,000
MASSACHUSETTS 0.4
Massachusetts Industrial Finance Agency IDR - Portland Causeway Realty Trust 2,600,000 4.13 3/08/99 2,600,000
Salem, Massachusetts IDFA IDR - Applied Extrusion Technologies, Inc. Project 6,500,000 4.13 3/08/99 6,500,000
-----------
9,100,000
MICHIGAN 0.1%
Lansing, Michigan Limited Obligation EDC IDR - Ashland Oil, Inc. Project 1,400,000 4.96 3/08/99 1,400,000
MINNESOTA 0.3%
Farmington, Minnesota IDR - WFW Ventures LLC Project 1,950,000 3.14 3/08/99 1,950,000
New Brighton, Minnesota IDR - Donatelle Holdings Project 3,325,000 3.35 3/08/99 3,325,000
Princeton, Minnesota IDR - Plastic Products Company, Inc. Project 1,200,000 3.35 3/08/99 1,200,000
-----------
6,475,000
44
</TABLE>
<PAGE>
<TABLE>
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================================================================================================================================
STRONG MUNICIPAL MONEY MARKET FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI 0.2%
Mississippi Business Finance Corporation IDR:
<S> <C> <C> <C> <C>
American Metal Sales, Inc. Project $ 3,700,000 3.60% 3/08/99 $ 3,700,000
Barclay Furniture Company Project 1,300,000 3.30 3/08/99 1,300,000
-----------
5,000,000
MISSOURI 3.7%
Berkeley, Missouri IDA Exempt Facility Revenue - St. Louis
Air Cargo Services, Inc. Project 12,700,000 4.25 3/08/99 12,700,000
Kansas City, Missouri IDA Facilities Revenue - KC Air Cargo Service Project 7,200,000 4.25 3/08/99 7,200,000
Missouri Development Finance Board IDR - MFA, Inc. Project:
Series A 1,990,000 3.15 3/08/99 1,990,000
Series B 765,000 3.15 3/08/99 765,000
Missouri Economic Development Export and Infrastructure Board Industrial
Development:
Series A 2,300,000 3.35 3/08/99 2,300,000
Series D 2,745,000 3.35 3/08/99 2,745,000
St. Charles County, Missouri IDA IDR - Craftsmen Industries Project 6,195,000 3.22 3/08/99 6,195,000
St. Charles County, Missouri IDA IDR Refunding:
Country Club Apartments Project 25,000,000 3.27 3/08/99 25,000,000
Remington Apartments Project 12,700,000 3.77 3/08/99 12,700,000
St. Louis County, Missouri IDA MFHR - Black Forest Apartments Project 4,000,000 3.25 3/08/99 4,000,000
West Plains, Missouri IDA IDR - West Plains Manor Project 2,200,000 4.50 3/08/99 2,200,000
-----------
77,795,000
NEBRASKA 0.6%
Douglas County, Nebraska IDR - QO Chemicals, Inc. Project 3,500,000 4.40 3/08/99 3,500,000
Nebraska EFA Revenue - Educational Equipment and Improvement Project 9,735,000 4.55 3/08/99 9,735,000
-----------
13,235,000
NEVADA 0.3%
Clark County, Nevada IDR 6,495,000 3.07 3/08/99 6,495,000
NEW HAMPSHIRE 0.5%
New Hampshire HFA SFHR 5,600,000 3.02 3/08/99 5,600,000
New Hampshire IDA Industrial Facility Revenue - Ferrofluidics
Corporation-1984 Nashua Series Project 5,000,000 3.50 3/08/99 5,000,000
-----------
10,600,000
NEW JERSEY 0.1%
New Jersey EDA EDR - Hickory Industries, Inc. Project 1,550,000 3.70 3/08/99 1,550,000
NEW MEXICO 1.2%
Bernalillo County, New Mexico Gross Receipts Tax Revenue 12,125,000 3.22 3/08/99 12,125,000
Bernalillo County, New Mexico MFHR - Westwood Villas Project 13,360,000 3.75 3/08/99 13,360,000
-----------
25,485,000
NEW YORK 1.4%
Erie County, New York IDA IDR - Niagara Envelope Company Project 3,000,000 3.40 3/08/99 3,000,000
Long Island, New York Power Authority Electric System Revenue 4,175,000 3.04 3/08/99 4,175,000
Metropolitan Transportation Authority Commuter Facilities Revenue -
Municipal Securities Trust Receipts 21,650,000 3.15 3/08/99 21,650,000
-----------
28,825,000
NORTH CAROLINA 1.6%
Alleghany County, North Carolina Industrial Facilities and PCFA IDR -
Spring-Ford Knitting Company, Inc. Project 2,000,000 3.30 3/08/99 2,000,000
Buncombe County, North Carolina Industrial Facilities and PCFA Revenue -
Rich Mount, Inc. Project 4,400,000 4.05 3/08/99 4,400,000
Craven County, North Carolina Industrial Facilities and PCFA IDR -
Wheatstone Corporation Project 3,800,000 3.35 3/08/99 3,800,000
Gaston County, North Carolina Industrial Facilities and PCFA IDR -
Spring-Ford Knitting Company, Inc. Project 3,665,000 3.30 3/08/99 3,665,000
Hoke County, North Carolina Industrial Facilities and PCFA IDR -
Triangle Building Supply, Inc. Project 2,375,000 3.35 3/08/99 2,375,000
Mecklenburg County, North Carolina Industrial Facilities and PCFA
Industrial Revenue - Murata Wiedemann, Inc. Project 5,300,000 4.35 3/08/99 5,300,000
North Carolina Agricultural Finance Authority Agricultural Development -
J.E. Jones Lumber Company Project 1,800,000 3.40 3/08/99 1,800,000
North Carolina Ports Authority Exempt Facility Revenue - Jordan Lumber &
Supply, Inc. Project 4,550,000 3.40 3/08/99 4,550,000
Rutherford County, North Carolina Industrial Facilities and PCFA IDR -
Spring-Ford Industries, Inc. Project 5,985,000 3.30 3/08/99 5,985,000
-----------
33,875,000
OHIO 0.7%
Butler County, Ohio MFHR Floating Rate Registered Trusts 7,825,000 3.30 3/08/99 7,825,000
Cuyahoga County, Ohio IDR - Edge Seal Technologies, Inc. and One
Industry Drive, Inc. Project 2,480,000 3.10 3/08/99 2,480,000
Gallia County, Ohio IDR - Harsco Corporation Project 3,500,000 3.10 3/08/99 3,500,000
-----------
13,805,000
45
</TABLE>
<PAGE>
<TABLE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) FEBRUARY 28, 1999
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG MUNICIPAL MONEY MARKET FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA 0.7%
<S> <C> <C> <C> <C>
Broken Arrow, Oklahoma EDA IDR - Paragon Films, Inc. Project $ 7,030,000 3.28% 3/08/99 $ 7,030,000
Oklahoma, Oklahoma Industrial and Cultural Facilities Trust Revenue -
Oklahoma City University Project 8,500,000 4.15 3/08/99 8,500,000
-----------
15,530,000
PENNSYLVANIA 1.7%
Allegheny County, Pennsylvania Hospital Development Authority Revenue -
Allegheny General Hospital Project 16,900,000 3.95 3/08/99 16,900,000
Allegheny County, Pennsylvania Hospital Development Authority Revenue -
Allegheny General Hospital Project 19,800,000 3.95 3/08/99 19,800,000
-----------
36,700,000
SOUTH CAROLINA 1.6%
Charleston County, South Carolina Industrial Revenue - Tandy
Corporation Project 1,000,000 4.65 3/08/99 1,000,000
Fairfield County, South Carolina Industrial Revenue - Fuji Copian
Corporation Project 9,000,000 4.35 3/08/99 9,000,000
Richland County, South Carolina IDR - Ashland Oil Project 1,400,000 4.96 3/08/99 1,400,000
South Carolina Jobs EDA EDR:
Carolina Cotton Works, Inc. Project 3,000,000 3.40 3/08/99 3,000,000
Galvstar LLC Project 2,650,000 3.40 3/08/99 2,650,000
Glo-Tex Chemicals, Inc. Project 2,700,000 3.40 3/08/99 2,700,000
South Carolina Jobs EDA IDR:
Quoizel, Inc. Project 8,000,000 3.40 3/08/99 8,000,000
Roller Bearing Company of America, Inc. Project 5,000,000 3.82 3/08/99 5,000,000
-----------
32,750,000
SOUTH DAKOTA 3.0%
Aberdeen, South Dakota IDR - Lomar Development Company Project 150,000 3.70 3/08/99 150,000
Brookings, South Dakota IDR - Lomar Development Company Project 2,080,000 3.70 3/08/99 2,080,000
South Dakota HDA Homeownership Mortgage 2,800,000 3.20 3/08/99 2,800,000
South Dakota HDA SFMR Draw Down Trust Indenture 13,975,000 3.95 3/08/99 13,975,000
South Dakota HDA SFMR Draw Down Trust Indenture 44,185,000 4.10 3/08/99 44,185,000
-----------
63,190,000
TENNESSEE 2.1%
Carter County, Tennessee IDB MFHR Refunding - Willow Run Apartments Project 6,675,000 3.25 3/08/99 6,675,000
Dover, Tennessee IDB Revenue - Nashville Wire Products Manufacturing
Company Project 3,000,000 3.25 3/08/99 3,000,000
Hamilton County, Tennessee IDB IDR - Hamilton Plastics, Inc. Project 3,750,000 3.25 3/08/99 3,750,000
Hamilton County, Tennessee IDB MFHR - The Waterford Place Apartments Project 9,600,000 3.37 3/08/99 9,600,000
Jackson, Tennessee Health, Educational and Housing Facility Board
Multi-Family Revenue - Park Ridge Apartments Project 5,000,000 3.60 3/08/99 5,000,000
Knox County, Tennessee Health, Educational and Housing Facilities Board
Revenue - Holston Long Term Care Project 4,100,000 3.10 3/08/99 4,100,000
Memphis, Tennessee Center City Revenue Finance Corporation MFHR 7,420,000 3.02 3/08/99 7,420,000
Montgomery County, Tennessee IDB IDR - Nashville Wire Products Project 4,000,000 3.25 3/08/99 4,000,000
-----------
43,545,000
TEXAS 3.2%
Austin County, Texas IDC IDR - Gulf States Toyota, Inc. Project 4,000,000 3.24 3/08/99 4,000,000
Azle, Texas IDA IDR - Tandy Corporation Project 3,000,000 4.01 3/08/99 3,000,000
Brazos River Authority Revenue Trusts 14,175,000 3.10 3/08/99 14,175,000
Deer Park, Texas Port Development Corporation IDR - Ashland Oil, Inc.
Project 4,700,000 4.96 3/08/99 4,700,000
Grand Prairie, Texas IDA IDR - Precision/API Ketema Project 3,100,000 3.50 3/08/99 3,100,000
Harris County, Texas IDC IDR - National Bedding Company Project 3,000,000 3.40 3/08/99 3,000,000
Longview, Texas Industrial Corporation IDR - Longview Guest Inn Project 2,200,000 3.25 3/08/99 2,200,000
Montgomery County, Texas IDC IDR - Porous Media, Ltd. Project 3,300,000 3.45 3/08/99 3,300,000
Robstown, Texas IDC IDR - Concrete Pipe and Products Company, Inc. Project 2,000,000 3.30 3/08/99 2,000,000
Tarrant County, Texas Health Facilities Development Corporation Health
Systems Revenue 9,995,000 3.43 3/08/99 9,994,581
Texas Municipal Securities Trust Receipts 10,270,000 3.10 3/08/99 10,270,000
Waco, Texas IDC IDR - Chad A. Greif Trust Project 7,000,000 3.25 3/08/99 7,000,000
-----------
66,739,581
VIRGINIA 0.3%
Richmond, Virginia Redevelopment and Housing Authority Tobacco Row Revenue 7,000,000 3.15 3/08/99 7,000,000
WASHINGTON 0.3%
Pierce County, Washington EDC - Brown & Haley Project 1,560,000 4.25 3/08/99 1,560,000
Port Moses Lake, Washington Public Corporation Industrial Revenue - Basic
American Foods Project 4,200,000 3.50 3/08/99 4,200,000
-----------
5,760,000
WEST VIRGINIA 0.3%
Braxton County, West Virginia Solid Waste Disposal Revenue Refunding -
Weyerhaeuser Company Project 7,000,000 3.20 3/08/99 7,000,000
46
</TABLE>
<PAGE>
<TABLE>
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG MUNICIPAL MONEY MARKET FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
WISCONSIN 1.1%
<S> <C> <C> <C> <C>
Ashwaubenon, Wisconsin IDR - Pioneer Metal Finishing, Inc. Project $ 1,615,000 3.60% 3/08/99 $ 1,615,000
Columbus, Wisconsin IDR - Maysteel Corporation Project 2,000,000 3.40 3/08/99 2,000,000
Combined Locks, Wisconsin IDR - Appleton Papers, Inc. Project 4,300,000 3.20 3/08/99 4,300,000
De Pere, Wisconsin IDR - Cleaning Systems, Inc. Project 3,875,000 3.20 3/08/99 3,875,000
Milwaukee, Wisconsin Redevelopment Authority Development Revenue -
Washington Square Phase III Project 7,845,000 4.00 3/08/99 7,845,000
New London, Wisconsin IDR - Steel King Industries, Inc. Project 3,290,000 3.35 3/08/99 3,290,000
--------------
22,925,000
WYOMING 0.3%
Campbell County, Wyoming IDR - Powder Basin Properties Project 6,005,000 3.35 3/08/99 6,005,000
MULTIPLE STATES 19.3%
Capital Realty Investments Tax-Exempt Fund, Ltd. Floating Rate Certificates:
Series 1996-4 38,770,000 3.26 3/08/99 38,770,000
Series 1996-5 27,135,000 3.21 3/08/99 27,135,000
Clipper Tax-Exempt Certificate Trusts 89,900,000 3.27 3/08/99 89,900,000
Clipper Tax-Exempt Trust COP 28,000,000 3.27 3/08/99 28,000,000
Lehman Brothers, Inc. Floating Pooled Trust Receipts 37,400,000 3.30 3/08/99 37,400,000
Puttable Floating Option Tax-Exempt Receipts:
Series P-5 29,690,000 4.18 3/08/99 29,687,031
Series PA 154 27,169,000 3.32 3/08/99 27,169,000
Series SG P-3 42,000,000 3.15 3/08/99 42,000,000
Series SG P-7 85,500,000 3.20 3/08/99 85,499,650
--------------
405,560,681
- ------------------------------------------------------------------------------------------------------------------------------
Total Weekly Variable Rate Put Bonds 1,503,074,625
- ------------------------------------------------------------------------------------------------------------------------------
Taxable Weekly Variable Rate Put Bonds 1.0%
VIRGINIA 1.0%
Virginia HDA Commonwealth Mortgage Revenue 20,000,000 4.94 3/08/99 20,000,000
- ------------------------------------------------------------------------------------------------------------------------------
Total Taxable Weekly Variable Rate Put Bonds 20,000,000
- ------------------------------------------------------------------------------------------------------------------------------
Daily Variable Rate Put Bonds 6.1%
ALABAMA 0.2%
Decatur, Alabama IDB Solid Waste Disposal Revenue - Amoco Chemical
Company Project 4,500,000 3.35 3/01/99 4,500,000
COLORADO 0.4%
Arapahoe County, Colorado MFHR Refunding - Stratford Station Project 8,455,000 4.00 3/01/99 8,455,000
DELAWARE 0.9%
Delaware EDA Revenue - Delmarva Power & Light Company Project 19,000,000 3.45 3/01/99 19,000,000
FLORIDA 0.2%
Jacksonville, Florida PCR - Florida Power & Light Company Project 4,000,000 3.15 3/01/99 4,000,000
IOWA 0.2%
Iowa Finance Authority Solid Waste Disposal Revenue - Cedar River Paper
Company Project 3,100,000 3.25 3/01/99 3,100,000
LOUISIANA 0.3%
Ascension Parish, Louisiana Revenue - BASF Corporation Project 7,000,000 3.25 3/01/99 7,000,000
NEW YORK 1.0%
New York, New York IDA IDR - Nippon Cargo Airlines Company Project 20,100,000 4.40 3/01/99 20,100,000
TEXAS 0.9%
Brazos River Authority PCR - Texas Utilities Electric Company Project 7,200,000 3.35 3/01/99 7,200,000
Gulf Coast Waste Disposal Authority Environmental Facilities Revenue -
Amoco Oil Company Project 4,600,000 3.35 3/01/99 4,600,000
Harris County, Texas IDC Solid Waste Disposal Revenue - Deer Park
Refining LP 3,900,000 3.45 3/01/99 3,900,000
Port Corpus Christi, Texas IDC Environmental Facilities Revenue -
Citco Petroleum Corporation Project 4,000,000 3.40 3/01/99 4,000,000
--------------
19,700,000
47
</TABLE>
<PAGE>
<TABLE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) FEBRUARY 28, 1999
- --------------------------------------------------------------------------------------------------------------------------------
================================================================================================================================
STRONG MUNICIPAL MONEY MARKET FUND (continued)
================================================================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
VIRGINIA 0.5%
Richmond Virginia IDA Revenue - Cogentrix of Richmond Project:
<S> <C> <C> <C> <C>
Series A $ 6,800,000 3.65 3/01/99 $ 6,800,000
Series B 3,500,000 3.65 3/01/99 3,500,000
--------------
10,300,000
WYOMING 0.5%
Sweetwater County, Wyoming Environmental Improvement Revenue -
PacifiCorp Project 11,400,000 3.50 3/01/99 11,400,000
MULTIPLE STATES 1.0%
Puttable Floating Option Tax-Exempt Receipts:
Series PPT-4 9,060,000 3.40 3/01/99 9,060,000
Series PPT-8 12,550,000 3.40 3/01/99 12,550,000
--------------
21,610,000
- ------------------------------------------------------------------------------------------------------------------------------
Total Daily Variable Rate Put Bonds 129,165,000
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total Investments in Securities 100.3% 2,111,632,423
Other Assets and Liabilities, Net (0.3%) (7,127,260)
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $2,104,505,163
==============================================================================================================================
</TABLE>
LEGEND
- --------------------------------------------------------------------------------
(a) Short-term investments include any security which has a maturity of less
than one year.
(b) Restricted security.
(c) All or a portion of security pledged to cover margin requirements for
futures contracts.
(d) Maturity date represents actual maturity or the longer of the next put date
or interest adjustment date. For U.S. Government Agency Securities,
maturity date represents actual maturity or the next interest adjustment
date.
(e) Variable rate security.
(f) When-issued security.
(g) Affiliated Issuer (see Note 8 of Notes to Financial Statements).
(h) See Note 2(I) of Notes to Financial Statements.
Percentages are stated as a percent of net assets.
ABBREVIATIONS
- --------------------------------------------------------------------------------
The following is a list of abbreviations that may be used in the Schedules of
Investments in Securities:
BAN -- Bond Anticipation Notes
BP -- Basis Points
CDA -- Commercial Development Authority
CDR -- Commercial Development Revenue
COP -- Certificates of Participation
DFA -- Development Finance Authority
EDA -- Economic Development Authority
EDC -- Economic Development Corporation
EDFA -- Economic Development Finance Authority
EDR -- Economic Development Revenue
EFA -- Educational Facilities Authority
EXTRAS -- Extendable Rate Adjustable Securities
GO -- General Obligation
HDA -- Housing Development Authority
HDC -- Housing Development Corporation
HFA -- Housing Finance Authority
HFC -- Housing Finance Corporation
IBA -- Industrial Building Authority
IBR -- Industrial Building Revenue
IDA -- Industrial Development Authority
IDB -- Industrial Development Board
IDC -- Industrial Development Corporation
IDFA -- Industrial Development Finance Authority
IDR -- Industrial Development Revenue
IFA -- Investment Finance Authority
MERLOT -- Municipal Exempt Receipt - Liquidity Optional Tender
MFHR -- Multi-Family Housing Revenue
MFMR -- Multi-Family Mortgage Revenue
PCFA -- Pollution Control Financing Authority
PCR -- Pollution Control Revenue
RAN -- Revenue Anticipation Notes
SFHR -- Single Family Housing Revenue
SFMR -- Single Family Mortgage Revenue
TAN -- Tax Anticipation Notes
TRAN -- Tax and Revenue Anticipation Notes
See Notes to Financial Statements.
48
<PAGE>
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
- ------------------------------------------------------------------------------------------------------------------
February 28, 1999
<CAPTION>
(In Thousands, Except Per Share Amounts)
Strong Strong Municipal
Advantage Fund Advantage Fund
-------------- ----------------
ASSETS:
Investments in Securities, at Value
<S> <C> <C>
Unaffiliated Issuers (Cost of $2,789,217 and $2,090,496, respectively) $2,764,263 $2,100,712
Affiliated Issuers (Cost of $0 and $87,100, respectively) -- 87,100
Receivable for Securities Sold 5,794 --
Receivable for Fund Shares Sold 1,549 40
Dividends and Interest Receivable 27,068 19,002
Other Assets -- 228
---------- ----------
Total Assets 2,798,674 2,207,082
LIABILITIES:
Payable for Securities Purchased 17,839 28,772
Payable for Fund Shares Redeemed 1,985 1,150
Dividends Payable 11,841 6,195
Accrued Operating Expenses and Other Liabilities 670 43
---------- ----------
Total Liabilities 32,335 36,160
---------- ----------
NET ASSETS $2,766,339 $2,170,922
========== ==========
NET ASSETS CONSIST OF:
Capital Stock (par value and paid-in capital) $2,798,521 $2,163,369
Undistributed Net Investment Income 55 --
Accumulated Net Realized Loss (7,927) (2,663)
Net Unrealized Appreciation (Depreciation) (24,310) 10,216
---------- ----------
Net Assets $2,766,339 $2,170,922
========== ==========
Capital Shares Outstanding (Unlimited Number Authorized) 277,949 430,809
Net Asset Value Per Share $9.95 $5.04
===== =====
</TABLE>
<TABLE>
<CAPTION>
STRONG STRONG STRONG STRONG
HERITAGE INVESTORS MONEY MUNICIPAL MONEY
MONEY FUND MONEY FUND MARKET FUND MARKET FUND
---------- ---------- ----------- ---------------
ASSETS:
<S> <C> <C> <C> <C>
Investments in Securities, at Amortized Cost $1,895,091 $265,810 $1,983,259 $2,111,632
Receivable for Securities Sold -- -- -- 29,854
Receivable for Fund Shares Sold 5 -- -- 500
Interest Receivable 3,388 374 4,398 11,758
Other Assets 114 1 225 331
---------- -------- ---------- ----------
Total Assets 1,898,598 266,185 1,987,882 2,154,075
LIABILITIES:
Payable for Securities Purchased 55,200 9,600 55,200 44,715
Payable for Fund Shares Redeemed 117 -- -- 225
Dividends Payable 6,552 939 6,437 4,328
Accrued Operating Expenses and Other Liabilities 45 2 56 302
---------- -------- ---------- ----------
Total Liabilities 61,914 10,541 61,693 49,570
---------- -------- ---------- ----------
NET ASSETS $1,836,684 $255,644 $1,926,189 $2,104,505
========== ======== ========== ==========
NET ASSETS CONSIST OF:
Capital Stock (par value and paid-in capital) $1,836,684 $255,644 $1,926,189 $2,104,505
========== ======== ========== ==========
Capital Shares Outstanding (Unlimited Number Authorized) 1,836,684 255,644 1,926,189 2,104,505
NET ASSET VALUE PER SHARE $1.00 $1.00 $1.00 $1.00
===== ===== ===== =====
See Notes to Financial Statements.
49
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------------------
For the Year Ended February 28, 1999
(In Thousands)
<CAPTION>
STRONG STRONG MUNICIPAL
ADVANTAGE FUND ADVANTAGE FUND
-------------- ----------------
INCOME:
<S> <C> <C>
Dividends - Unaffiliated Issuers $ 2,832 $ --
Dividends - Affiliated Issuers -- 2,128
Interest 164,201 65,965
-------- -------
Total Income 167,033 68,093
EXPENSES:
Investment Advisory Fees 15,176 8,406
Custodian Fees 107 54
Shareholder Servicing Costs 2,789 425
Other 861 525
-------- -------
Total Expenses before Waivers 18,933 9,410
Expense Waivers by Advisor -- (1,428)
-------- -------
Expenses, Net 18,933 7,982
-------- -------
NET INVESTMENT INCOME 148,100 60,111
REALIZED AND UNREALIZED GAIN (LOSS):
Net Realized Gain on:
Investments 1,652 134
Futures Contracts and Options 842 --
-------- -------
Net Realized Gain 2,494 134
Change in Unrealized Appreciation/Depreciation on:
Investments (36,399) 2,602
Futures Contracts and Options (516) --
-------- -------
Net Change in Unrealized Appreciation/Depreciation (36,915) 2,602
-------- -------
NET GAIN (LOSS) ON INVESTMENTS (34,421) 2,736
-------- -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $113,679 $62,847
======== =======
</TABLE>
<TABLE>
<CAPTION>
STRONG
STRONG HERITAGE STRONG INVESTORS STRONG MONEY MUNICIPAL MONEY
MONEY FUND MONEY FUND MARKET FUND MARKET FUND
--------------- ---------------- ------------ ---------------
(Note 1)
<S> <C> <C> <C> <C>
INTEREST INCOME $84,180 $5,670 $33,105 $82,427
EXPENSES:
Investment Advisory Fees 7,652 527 3,174 10,268
Custodian Fees 45 11 16 47
Shareholder Servicing Costs 817 275 2,211 2,281
Reports to Shareholders 111 47 301 135
Federal and State Registration Fees 47 121 13 127
Other 114 17 66 128
------- ------ ------- -------
Total Expenses before Waivers and Absorptions 8,786 998 5,781 12,986
Expense Waivers and Absorptions by Advisor (3,919) (998) (1,855) --
------- ------ ------- -------
Expenses, Net 4,867 -- 3,926 12,986
------- ------ ------- -------
NET INVESTMENT INCOME AND NET INCREASE
IN NET ASSETS RESULTING FROM OPERATIONS $79,313 $5,670 $29,179 $69,441
======= ====== ======= =======
</TABLE>
See Notes to Financial Statements.
50
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------------
(In Thousands)
<CAPTION>
STRONG STRONG MUNICIPAL
ADVANTAGE FUND ADVANTAGE FUND
------------------------------- -----------------------------
Year Ended Year Ended Year Ended Year Ended
Feb. 28, 1999 Feb. 28, 1998 Feb. 28, 1999 Feb. 28, 1998
------------- ------------- ------------- -------------
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income $ 148,100 $ 114,890 $ 60,111 $ 37,590
Net Realized Gain (Loss) 2,494 (7,166) 134 (1,173)
Net Change in Unrealized Appreciation/Depreciation (36,915) 5,011 2,602 5,108
---------- ---------- ---------- ----------
Net Increase in Net Assets Resulting from Operations 113,679 112,735 62,847 41,525
DISTRIBUTIONS:
From Net Investment Income (148,100) (114,890) (60,111) (37,590)
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold 2,946,300 2,163,729 2,486,040 1,170,270
Proceeds from Reinvestment of Distributions 131,622 102,231 51,811 32,175
Payment for Shares Redeemed (2,440,808) (1,619,853) (1,381,705) (838,603)
---------- ---------- ---------- ----------
Net Increase in Net Assets from Capital Share Transactions 637,114 646,107 1,156,146 363,842
---------- ---------- ---------- ----------
TOTAL INCREASE IN NET ASSETS 602,693 643,952 1,158,882 367,777
NET ASSETS:
Beginning of Year 2,163,646 1,519,694 1,012,040 644,263
---------- ---------- ---------- ----------
End of Year $2,766,339 $2,163,646 $2,170,922 $1,012,040
========== ========== ========== ==========
TRANSACTIONS IN SHARES OF THE FUND:
Sold 293,643 214,499 493,759 233,361
Issued in Reinvestment of Distributions 13,123 10,135 10,290 6,415
Redeemed (243,494) (160,610) (274,413) (167,207)
------- ------- ------- -------
Net Increase in Shares of the Fund 63,272 64,024 229,636 72,569
======= ======= ======= =======
</TABLE>
<TABLE>
STRONG HERITAGE STRONG INVESTORS
MONEY FUND MONEY FUND
------------------------------ -----------------------------
<CAPTION>
Year Ended Year Ended Year Ended Year Ended
Feb. 28, 1999 Feb. 28, 1998 Feb. 28, 1999 Feb. 28, 1998
------------- ------------- ------------- -------------
(Note 1)
OPERATIONS:
Net Investment Income and Net Increase in Net Assets
<S> <C> <C> <C> <C>
Resulting from Operations $ 79,313 $ 94,985 $ 5,670 $ 27
DISTRIBUTIONS:
From Net Investment Income (79,313) (94,985) (5,670) (27)
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold 2,304,386 1,883,618 337,628 9,877
Proceeds from Reinvestment of Distributions 74,363 91,575 4,441 --
Payment for Shares Redeemed (2,025,605) (2,491,811) (93,893) (2,409)
---------- ---------- -------- ------
Net Increase (Decrease) in Net Assets from Capital
Share Transactions 353,144 (516,618) 248,176 7,468
---------- ---------- -------- ------
TOTAL INCREASE (DECREASE) IN NET ASSETS 353,144 (516,618) 248,176 7,468
NET ASSETS:
Beginning of Year 1,483,540 2,000,158 7,468 --
---------- ---------- -------- ------
End of Year $1,836,684 $1,483,540 $255,644 $7,468
========== ========== ======== ======
TRANSACTIONS IN SHARES OF THE FUND:
Sold 2,304,386 1,883,618 337,628 9,877
Issued in Reinvestment of Distributions 74,363 91,575 4,441 --
Redeemed (2,025,605) (2,491,811) (93,893) (2,409)
--------- --------- ------- -----
Net Increase (Decrease) in Shares of the Fund 353,144 (516,618) 248,176 7,468
========= ========= ======= =====
</TABLE>
See Notes to Financial Statements.
51
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
(In Thousands)
<CAPTION>
Strong Money Strong Municipal
Market Fund Money Market Fund
----------------------------------------------- ------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
Feb. 28, 1999 Oct. 31, 1998 Oct. 31, 1997 Feb. 28, 1999 Feb. 28, 1998
------------- ------------- ------------- ------------- -------------
(Note 1)
OPERATIONS:
<S> <C> <C> <C> <C> <C>
Net Investment Income $ 29,179 $ 97,648 $ 99,258 $ 69,441 $ 66,146
Net Realized Loss on Investments -- -- (14,444) -- --
---------- ---------- ---------- ---------- ----------
Net Increase in Net Assets
Resulting from Operations 29,179 97,648 84,814 69,441 66,146
DISTRIBUTIONS:
From Net Investment Income (29,179) (97,648) (99,258) (69,441) (66,146)
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold 1,042,350 3,195,385 3,261,358 5,262,565 3,432,374
Proceeds from Reinvestment of Distributions 29,874 93,465 94,201 63,080 62,048
Payment for Shares Redeemed (1,069,859) (3,203,404) (3,466,443) (5,092,372) (3,518,087)
---------- ---------- ---------- ---------- ----------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 2,365 85,446 (110,884) 233,273 (23,665)
CAPITAL CONTRIBUTION (Note 4) -- -- 14,444 -- --
---------- ---------- ---------- ---------- ----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,365 85,446 (110,884) 233,273 (23,665)
NET ASSETS:
Beginning of Year 1,923,824 1,838,378 1,949,262 1,871,232 1,894,897
---------- ---------- ---------- ---------- ----------
End of Year $1,926,189 $1,923,824 $1,838,378 $2,104,505 $1,871,232
========== ========== ========== ========== ==========
TRANSACTIONS IN SHARES OF THE FUND:
Sold 1,042,350 3,195,385 3,261,358 5,262,565 3,432,374
Issued in Reinvestment of Distributions 29,874 93,465 94,201 63,080 62,048
Redeemed (1,069,859) (3,203,404) (3,466,443) (5,092,372) (3,518,087)
---------- ---------- ---------- ---------- ----------
Net Increase (Decrease) in Shares of the Fund 2,365 85,446 (110,884) 233,273 (23,665)
========== ========== ========== ========== ==========
</TABLE>
See Notes to Financial Statements.
52
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
February 28, 1999
1. ORGANIZATION
The accompanying financial statements represent the Strong Cash Management
Funds (the "Funds"), which include the following funds, each with its own
investment objectives and policies:
- Strong Advantage Fund, Inc.(1)
- Strong Municipal Advantage Fund (a series of Strong Municipal Funds,
Inc.(1))
- Strong Heritage Money Fund (a series of Strong Heritage Reserve
Series, Inc.(1))
- Strong Investors Money Fund (formerly known as Strong Step 1 Money
Fund) (a series of Strong Heritage Reserve Series, Inc.(1))
- Strong Money Market Fund, Inc.(1)
- Strong Municipal Money Market Fund (a series of Strong Municipal
Funds, Inc.(1))
(1) A diversified, open-end management investment company registered under
the Investment Company Act of 1940. The inception date for Strong Investors
Money Fund is January 31, 1998. During 1998, the Board of Directors of the
Strong Money Market Fund, Inc. approved changing the Fund's fiscal year-end
from October 31st to February 28th.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Funds in the preparation of their financial statements.
(A) Security Valuation -- Securities of Strong Advantage Fund and Strong
Municipal Advantage Fund are valued at fair value through valuations
obtained by a commercial pricing service or the mean of the bid and
asked prices when no last sales price is available. Securities for
which market quotations are not readily available are valued at fair
value as determined in good faith under consistently applied
procedures established by and under the general supervision of the
Board of Directors. Securities which are purchased within 60 days of
their stated maturity and all investments in Strong Heritage Money
Fund, Strong Investors Money Fund, Strong Money Market Fund and Strong
Municipal Money Market Fund are valued at amortized cost, which
approximates fair value, whereby a portfolio security is valued at its
cost initially, and thereafter valued to reflect a constant
amortization to maturity of any discount or premium. Amortized cost
for federal income tax and financial reporting purposes is the same.
The Funds may own certain investment securities which are restricted
as to resale. These securities are valued after giving due
consideration to pertinent factors, including recent private sales,
market conditions and the issuer's financial performance. The Funds
generally bear the costs, if any, associated with the disposition of
restricted securities. Aggregate cost and fair value of these
restricted securities held at February 28, 1999 were as follows:
<TABLE>
<CAPTION>
Aggregate Aggregate Percent of
Cost Fair Value Net Assets Liquid*
------------ ------------ ---------- -------
<S> <C> <C> <C> <C>
Strong Advantage Fund $939,549,725 $918,554,127 33.2% 79.9%
Strong Heritage Money Fund 803,280,118 807,996,318 44.0% 100.0%
Strong Investors Money Fund 106,837,683 107,384,216 42.0% 100.0%
Strong Money Market Fund 791,879,985 796,279,500 41.3% 100.0%
</TABLE>
*Percentage of restricted securities which are either 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 Funds intend to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute substantially all of their taxable income to their
shareholders in a manner which results in no tax cost to the Funds.
Therefore, no federal income or excise tax provision is required.
The character of distributions made during the year from net
investment income or net realized gains for financial statement
purposes may differ from the characterization for federal income tax
purposes due to differences in the recognition of income and expense
items for financial statement and tax purposes. Where appropriate,
reclassifications between net asset accounts are made for such
differences that are permanent in nature.
Each fund generally pays dividends from net investment income monthly
and distributes any net capital gains that it realizes annually.
Dividends are declared on each day the net asset value is calculated,
except for bank holidays.
(C) Realized Gains and Losses on Investment Transactions -- Investment
security transactions are recorded as of the trade date. Gains or
losses realized on investment transactions are determined by comparing
the identified cost of the security lot sold with the net sales
proceeds.
(D) Certain Investment Risks -- The Funds may utilize derivative
instruments including options, futures, and other instruments with
similar characteristics to the extent that they are consistent with
the Funds' investment objectives and limitations. The Funds intend to
use such derivative instruments primarily to hedge or protect from
adverse movements in securities prices or interest rates. The use of
these instruments may involve risks such as the possibility of
illiquid markets or imperfect correlation between the value of the
instruments and the underlying securities, or that the counterparty
will fail to perform its obligations.
53
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
February 28, 1999
To the extent the fund has foreign denominated assets or forward
currency contracts, these investments may involve greater risks than
domestic transactions, including currency, political and economic,
regulatory and market risks.
(E) Futures -- Upon entering into a futures contract, the Funds pledge to
the broker cash or other investments equal to the minimum "initial
margin" requirements of the exchange. Additional securities held by
the Funds may be designated as collateral on open futures contracts.
The Funds also receive from or pay to the broker an amount of cash
equal to the daily fluctuation in the value of the contract. Such
receipts or payments are known as "variation margin," and are recorded
as unrealized gains or losses. When the futures contract is closed, a
realized gain or loss is recorded equal to the difference between the
value of the contract at the time it was opened and the value at the
time it was closed.
(F) Options -- The Funds may write put or call options (none were written
during the period). Premiums received by the Funds upon writing put or
call options are recorded as an asset with a corresponding liability
which is subsequently adjusted to the current market value of the
option. When an option expires, is exercised, or is closed, the Funds
realize a gain or loss, and the liability is eliminated. The Funds
continue to bear the risk of adverse movements in the price of the
underlying asset during the period of the option, although any
potential loss during the period would be reduced by the amount of the
option premium received.
(G) Foreign Currency Translation -- Investment securities and other assets
and liabilities initially expressed in foreign currencies are
converted to U.S. dollars based upon current exchange rates. Purchases
and sales of foreign investment securities and income are converted to
U.S. dollars based upon currency exchange rates prevailing on the
respective dates of such transactions. The effect of changes in
foreign exchange rates on realized and unrealized security gains or
losses is reflected as a component of such gains or losses.
(H) Forward Foreign Currency Exchange Contracts -- Forward foreign
currency exchange contracts are valued at the forward rate and are
marked-to-market daily. The change in market value is recorded as an
unrealized gain or loss. When the contract is closed, the Funds record
an exchange gain or loss equal to the difference between the value of
the contract at the time it was opened and the value at the time it
was closed.
(I) Repurchase Agreements -- The Funds may enter into repurchase
agreements with institutions that the Funds' investment advisor,
Strong Capital Management, Inc. ("the Advisor"), has determined are
creditworthy pursuant to criteria adopted by the Board of Directors.
Each repurchase agreement is recorded at cost. The Funds require that
the collateral, represented by securities (primarily U.S. Government
securities), in a repurchase transaction be maintained in a segregated
account with a custodian bank in a manner sufficient to enable the
Funds to obtain those securities in the event of a default of the
repurchase agreement. On a daily basis, the Advisor monitors each
repurchase agreement to ensure the value of the collateral, including
accrued interest, is at least equal to the amounts owed to the Funds
under each repurchase agreement.
(J) Use of Estimates -- The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts in these financial statements. Actual results could differ
from those estimates.
(K) Other -- Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income is recorded on the
accrual basis and includes amortization of premium and discounts.
3. RELATED PARTY TRANSACTIONS
The Advisor, with whom certain officers and directors of the Funds are
affiliated, provides investment advisory services and shareholder
recordkeeping and related services to the Funds. Investment advisory fees,
which are established by terms of the Advisory Agreements, are based on the
following annualized rates of the average daily net assets: Strong
Advantage Fund and Strong Municipal Advantage Fund 0.60%, Strong Heritage
Money Fund, Strong Investors Money Fund, Strong Money Market Fund and
Strong Municipal Money Market Fund 0.50%. Based on the terms of the
Advisory Agreements, advisory fees and other expenses 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
or absorb certain expenses at their discretion. Shareholder recordkeeping
and related service fees are based on contractually established rates for
each open and closed shareholder account. The Advisor is compensated for
certain other services related to costs incurred for reports to
shareholders.
Strong Advantage Fund and Strong Municipal Advantage Fund may invest cash
in money market funds sponsored and managed by the Advisor, subject to
certain limitations. The terms of such transactions are identical to those
of non-related entities except that, to avoid duplicate investment advisory
fees, advisory fees of each Fund are reduced by an amount equal to advisory
fees paid to the Advisor under its investment advisory agreement with the
money market funds.
54
<PAGE>
- --------------------------------------------------------------------------------
Certain information regarding related party transactions, excluding the
effect of waivers and absorptions, for the year ended February 28, 1999, is
as follows:
<TABLE>
<CAPTION>
Payable to/(Receivable Shareholder Servicing Unaffiliated
from) Advisor at and Other Expenses Directors'
Feb. 28, 1999 Paid to Advisor Fees
---------------------- --------------------- ------------
<S> <C> <C> <C>
Strong Advantage Fund $ 63,836 $2,772,302 $21,844
Strong Municipal Advantage Fund 28,661 324,808 11,922
Strong Heritage Money Fund 44,941 436,496 15,387
Strong Investors Money Fund 1,691 256,309 1,915
Strong Money Market Fund (56,101) 1,720,822 9,164
Strong Municipal Money Market Fund (116,011) 854,410 19,105
</TABLE>
4. CAPITAL CONTRIBUTION
On January 31, 1997, the Advisor purchased a security from the Strong Money
Market Fund for $14,443,753 in excess of the security's fair value. The
Strong Money Market 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 Strong Money Market 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.
5. LINE OF CREDIT
The Strong Funds have established a line of credit agreement ("LOC") with
certain financial institutions to be used for temporary or emergency
purposes, primarily for financing redemption payments. Combined borrowings
among all participating Strong Funds are subject to a $350 million cap on
the total line of credit. For individual Funds, borrowings under the LOC
are limited to either the lesser of 15% of the market value of total assets
or any explicit borrowing limits in the Funds' prospectus. Borrowings under
the LOC bear interest based on prevailing market rates as defined in the
LOC. A commitment fee of .07% per annum is incurred on the unused portion
of the line of credit and is allocated to all participating Strong Funds.
At February 28, 1999, there were no borrowings by the Funds outstanding
under the LOC.
6. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of long-term securities for the year
ended February 28, 1999, were as follows:
<TABLE>
<CAPTION>
Purchases Sales
-------------------------------- ---------------------------------
U.S. Government U.S. Government
and Agency Other and Agency Other
--------------- -------------- --------------- --------------
<S> <C> <C> <C> <C>
Strong Advantage Fund $300,092,424 $2,326,653,281 $204,229,697 $1,734,809,473
Strong Municipal Advantage Fund -- 700,015,449 -- 236,442,603
</TABLE>
7. INCOME TAX INFORMATION
At February 28, 1999, the investment cost, gross unrealized appreciation
and depreciation on investments and capital loss carryovers (expiring in
varying amounts through 2006) for federal income tax purposes were as
follows:
<TABLE>
<CAPTION>
Federal Tax Unrealized Unrealized Net Appreciation/ Net Capital Loss
Cost Appreciation Depreciation (Depreciation) Carryovers
-------------- ------------ ------------ ----------------- ----------------
<S> <C> <C> <C> <C> <C>
Strong Advantage Fund $2,789,218,543 $10,984,311 ($35,904,085) ($24,919,774) $7,281,929
Strong Municipal Advantage Fund 2,177,607,672 10,379,944 (176,029) 10,203,915 2,651,143
</TABLE>
During the year ended February 28, 1999, the Strong Advantage Fund and
Strong Municipal Advantage Fund utilized $3,900,963 and $133,537,
respectively, of their capital loss carryovers against net capital gains.
For corporate shareholders in Strong Advantage Fund and Strong Municipal
Advantage Fund, the percentage of dividend income distributed for the year
ended February 28, 1999, which is designated as qualifying for the
dividends-received deduction is 1.29% and 0.00%, respectively (unaudited).
55
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
February 28, 1999
8. INVESTMENTS IN AFFILIATES
Affiliated issuers, as defined under the Investment Company Act of 1940,
include those in which a Fund's holdings represent 5% or more of the
outstanding voting securities of the issuer, and any other Strong Fund. A
summary of transactions in the securities of these issuers during the year
ended February 28, 1999 is as follows:
<TABLE>
<CAPTION>
Balance of Gross Gross Sales Balance of Value Dividend Income
Shares Held Purchases and Shares Held Feb. 28, Mar. 1, 1998 -
Mar. 1, 1998 and Additions Reductions Feb. 28, 1999 1999 Feb. 28, 1999
------------ ------------- ----------- ------------- -------- ----------------
STRONG MUNICIPAL ADVANTAGE FUND
- -------------------------------
<S> <C> <C> <C> <C> <C> <C>
Strong Municipal Money Market Fund 16,100,000 990,700,000 (919,700,000) 87,100,000 $87,100,000 $2,127,559
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------------------------------------------------------------------------
STRONG ADVANTAGE FUND
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Year Ended
------------------------------------------------------------
Feb. 28, Feb. 28, Feb. 28, Feb. 29, Dec. 31, Dec. 31,
Selected Per-Share Data(a) 1999 1998 1997 1996(b) 1995 1994
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.08 $10.09 $10.03 $10.04 $ 9.98 $10.19
Income From Investment Operations
Net Investment Income 0.59 0.62 0.62 0.10 0.67 0.55
Net Realized and Unrealized Gains (Losses) on Investments (0.13) (0.01) 0.06 (0.01) 0.06 (0.19)
- ------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.46 0.61 0.68 0.09 0.73 0.36
Less Distributions
From Net Investment Income (0.59) (0.62) (0.62) (0.10) (0.67) (0.55)
In Excess of Net Realized Gains -- -- -- -- -- (0.02)
- ------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.59) (0.62) (0.62) (0.10) (0.67) (0.57)
- ------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.95 $10.08 $10.09 $10.03 $10.04 $ 9.98
========================================================================================================================
Ratios and Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------
Total Return +4.6% +6.3% +7.0% +0.9% +7.5% +3.6%
Net Assets, End of Period (In Millions) $2,766 $2,164 $1,520 $1,000 $990 $911
Ratio of Expenses to Average Net Assets 0.7% 0.8% 0.8% 0.8%* 0.8% 0.8%
Ratio of Net Investment Income to Average Net Assets 5.8% 6.2% 6.2% 6.3%* 6.6% 5.6%
Portfolio Turnover Rate 79.3% 109.6% 154.9% 17.2% 183.7% 221.0%
</TABLE>
* 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 1996, the Fund changed its fiscal year-end from December to February.
See Notes to Financial Statements.
56
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------------------------------------
STRONG MUNICIPAL ADVANTAGE FUND
- ----------------------------------------------------------------------------------------------------
<CAPTION>
Year Ended
-------------------------------------------
Feb. 28, Feb. 28, Feb. 28, Feb. 29,
Selected Per-Share Data(a) 1999 1998 1997 1996(c)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $5.03 $5.01 $5.01 $5.00
Income From Investment Operations
Net Investment Income 0.21 0.22 0.25 0.06
Net Realized and Unrealized Gains on Investments 0.01 0.02 0.00(b) 0.01
- ----------------------------------------------------------------------------------------------------
Total from Investment Operations 0.22 0.24 0.25 0.07
Less Distributions
From Net Investment Income (0.21) (0.22) (0.25) (0.06)
From Net Realized Gains -- -- 0.00(b) --
- ----------------------------------------------------------------------------------------------------
Total Distributions (0.21) (0.22) (0.25) (0.06)
- ----------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $5.04 $5.03 $5.01 $5.01
====================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------
Total Return +4.5% +5.0% +5.1% +1.4%
Net Assets, End of Period (In Millions) $2,171 $1,012 $644 $132
Ratio of Expenses to Average Net Assets 0.5% 0.4% 0.0%(b) 0.0%*
Ratio of Expenses to Average Net Assets Without Waivers 0.6% 0.7% 0.7% 0.7%*
Ratio of Net Investment Income to Average Net Assets 4.1% 4.5% 5.0% 4.9%*
Portfolio Turnover Rate 36.0% 49.6% 40.8% 17.1%
</TABLE>
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
(b) Amount calculated is less than $0.01 or 0.01%.
(c) For the period from December 1, 1995 (commencement of operations) to
February 29, 1996.
<TABLE>
STRONG HERITAGE MONEY FUND
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
Year Ended
-------------------------------------------
Feb. 28, Feb. 28, Feb. 28, Feb. 29,
Selected Per-Share Data(a) 1999 1998 1997 1996(c)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00
Income From Investment Operations
Net Investment Income 0.05 0.05 0.06 0.04
Net Realized Losses on Investments -- -- (0.01) --
- ----------------------------------------------------------------------------------------------------
Total from Investment Operations 0.05 0.05 0.05 0.04
Less Distributions
From Net Investment Income (0.05) (0.05) (0.06) (0.04)
- ----------------------------------------------------------------------------------------------------
Total Distributions (0.05) (0.05) (0.06) (0.04)
- ----------------------------------------------------------------------------------------------------
Capital Contribution -- -- 0.01 --
- ----------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00
====================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------
Total Return +5.3% +5.6% +5.7%(b) +4.1%
Net Assets, End of Period (In Millions) $1,837 $1,484 $2,000 $942
Ratio of Expenses to Average Net Assets 0.3% 0.2% 0.1% 0.0%*(d)
Ratio of Expenses to Average Net Assets Without Waivers 0.6% 0.6% 0.6% 0.6%*
Ratio of Net Investment Income to Average Net Assets 5.2% 5.4% 5.6% 5.9%*
</TABLE>
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
(b) Had the Advisor not made the capital contribution as described in the Notes
to the Financial Statments, the adjusted total return would have been 5.0%
for the fiscal year ended February 28, 1997.
(c) For the period from June 30, 1995 (commencement of operations) to February
29, 1996.
(d) Amount calculated is less than 0.01%.
See Notes to Financial Statements.
57
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------------------
STRONG INVESTORS MONEY FUND
- --------------------------------------------------------------------------------------------
<CAPTION>
Year Ended
---------------------
Feb. 28, Feb. 28,
Selected Per-Share Data(a) 1999 1998(b)
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00
Income From Investment Operations
Net Investment Income 0.06 0.00(c)
- --------------------------------------------------------------------------------------------
Total from Investment Operations 0.06 0.00(c)
Less Distributions
From Net Investment Income (0.06) --
- --------------------------------------------------------------------------------------------
Total Distributions (0.06) --
- --------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00
============================================================================================
Ratios and Supplemental Data
- --------------------------------------------------------------------------------------------
Total Return +5.7% +0.5%
Net Assets, End of Period (In Millions) $256 $7
Ratio of Expenses to Average Net Assets 0.0% 0.0%*
Ratio of Expenses to Average Net Assets Without Waivers and Absorptions 0.9% 2.0%*
Ratio of Net Investment Income to Average Net Assets 5.4% 6.1%*
</TABLE>
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
(b) For the period from January 31, 1998 (inception) to February 28, 1998
(Note 1).
(c) Amount calculated is less than $0.01 or 0.01%.
<TABLE>
STRONG MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Year Ended
-------------------------------------------------------------
Feb. 28, Oct. 31, Oct. 31, Oct. 31, Oct. 31, Dec. 31,
Selected Per-Share Data(a) 1999(b) 1998 1997 1996 1995(d) 1994
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income From Investment Operations
Net Investment Income 0.02 0.05 0.05 0.05 0.05 0.04
Net Realized Losses on Investments -- -- (0.01) -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.02 0.05 0.04 0.05 0.05 0.04
Less Distributions
From Net Investment Income (0.02) (0.05) (0.05) (0.05) (0.05) (0.04)
- ------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.02) (0.05) (0.05) (0.05) (0.05) (0.04)
- ------------------------------------------------------------------------------------------------------------------------
Capital Contribution (Note 4) -- -- 0.01 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
========================================================================================================================
Ratios and Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------
Total Return +1.5% +5.3% +5.3%(c) +5.4% +5.2% +4.0%
Net Assets, End of Period (In Millions) $1,926 $1,924 $1,838 $1,949 $1,934 $541
Ratio of Expenses to Average Net Assets 0.6%* 0.5% 0.5% 0.4% 0.0%* 0.6%
Ratio of Expenses to Average Net Assets Without Waivers 0.9%* 0.9% 0.9% 0.8% 0.7%* 0.9%
Ratio of Net Investment Income to Average Net Assets 4.6%* 5.2% 5.2% 5.3% 6.1%* 4.0%
</TABLE>
* 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 1999, the Fund changed its fiscal year-end from October to February
(Note 1).
(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 fiscal year ended
October 31, 1997.
(d) In 1995, the Fund changed its fiscal year-end from December to October.
See Notes to Financial Statements.
58
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
- -----------------------------------------------------------------------------------------------------------------------
STRONG MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Year Ended
------------------------------------------------------------
Feb. 28, Feb. 28, Feb. 28, Feb. 29, Dec. 31, Dec. 31,
Selected Per-Share Data(a) 1999 1998 1997 1996(c) 1995 1994
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income From Investment Operations
Net Investment Income 0.03 0.04 0.03 0.01 0.04 0.03
- ------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.03 0.04 0.03 0.01 0.04 0.03
Less Distributions
From Net Investment Income(b) (0.03) (0.04) (0.03) (0.01) (0.04) (0.03)
- ------------------------------------------------------------------------------------------------------------------
Total Distributions (0.03) (0.04) (0.03) (0.01) (0.04) (0.03)
- ------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
==================================================================================================================
Ratios and Supplemental Data
- ------------------------------------------------------------------------------------------------------------------
Total Return +3.4% +3.6% +3.5% +0.6% +4.1% +2.9%
Net Assets, End of Period (In Millions) $2,105 $1,871 $1,895 $1,609 $1,416 $1,261
Ratio of Expenses to Average Net Assets 0.6% 0.6% 0.6% 0.6%* 0.6% 0.6%
Ratio of Net Investment Income to Average Net Assets 3.4% 3.5% 3.5% 3.6%* 4.0% 2.9%
</TABLE>
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
(b) Tax-exempt for regular Federal income tax purposes.
(c) In 1996, the Fund changed its fiscal year-end from December to February.
See Notes to Financial Statements.
59
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Directors of
the Strong Cash Management Funds
In our opinion, the accompanying statements of assets and liabilities, including
the schedules 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 Advantage Fund, Inc., Strong
Money Market Fund, Inc., Strong Municipal Advantage Fund and Strong Municipal
Money Market Fund (two of the portfolios constituting the Strong Municipal
Funds, Inc.), Strong Heritage Money Fund and Strong Investors Money Fund (two of
the portfolios constituting the Strong Heritage Reserve Series, Inc.) (all six
of the portfolios collectively referred to herein as the "Strong Cash Management
Funds"), at February 28, 1999, the results of each of their operations, the
changes in each of their net assets and the financial highlights for each of 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 Strong Cash Management
Funds' management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audits 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 owned at February 28, 1999 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Milwaukee, Wisconsin
April 7, 1999
60
<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 Investments, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
CUSTODIAN
Firstar Bank Milwaukee, N.A.
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.strongfunds.com
[STRONG LOGO]
STRONG FUNDS
P.O. Box 2936 o Milwaukee, Wisconsin 53201
Strong Investments, Inc. 11104C99 ACASH
