<PAGE>
[PHOTO]
THE STRONG
CASH MANAGEMENT
FUNDS
- -------------------------------------------------------------------------------
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
ANNUAL REPORT - FEBRUARY 29, 2000
<PAGE>
THE STRONG
CASH MANAGEMENT
FUNDS
---------------
ANNUAL REPORT - FEBRUARY 29, 2000
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
BOND GLOSSARY.............................................................14
FINANCIAL INFORMATION
Schedules of Investments in Securities
The Strong Advantage Fund.......................................15
The Strong Municipal Advantage Fund.............................20
The Strong Heritage Money Fund..................................27
The Strong Investors Money Fund.................................30
The Strong Money Market Fund....................................33
The Strong Municipal Money Market Fund..........................37
Statements of Assets and Liabilities.................................47
Statements of Operations.............................................49
Statements of Changes in Net Assets..................................51
Notes to Financial Statements........................................53
FINANCIAL HIGHLIGHTS......................................................60
REPORT OF INDEPENDENT ACCOUNTANTS.........................................64
<PAGE>
THE STRONG ADVANTAGE FUND FUND
------------------------------
PERSPECTIVES
FROM THE MANAGERS
/s/ Jeffrey A. Koch /s/ Thomas Sontag
Jeffrey A. Koch Thomas Sontag
Portfolio Co-manager Portfolio Co-manager
- --------------------------------------------------------------------------------
The resiliency of the United States economy over the past twelve months has been
a surprise to most market observers. As we entered the fiscal year, the
consensus was that a worldwide economic slowdown would eventually cause the
domestic economy to cool. As the year wore on, it became apparent that the
United States economy was continuing to grow at a rapid rate. Tightness in labor
markets, in particular, caused the Federal Reserve Board to become increasingly
concerned about the prospects of future inflation. The result of this uneasiness
was the Fed's raising rates by a total of 100 basis points over the period.
In anticipation of the U.S. economy's continued strength, we shortened the
Fund's duration (a measure of its sensitivity to interest rate changes) later in
the fiscal year to minimize the adverse effect that a rising rate environment
has on fixed income funds. At the beginning of the fiscal year, the Advantage
Fund had a duration of 0.8 years. At the end of the reporting period, this
figure stood at 0.55.
We accomplished this shortening primarily by investing cash from maturing bonds
into floating-rate securities. An example of a floater the Fund purchased is
Bear Stearns Commercial Mortgage 1999-WYN1 Class B, which is secured by a
mortgage on some of the premier hotel properties operated by
- --------------------------------------------------------------------------------
IN ANTICIPATION OF THE U.S. ECONOMY'S CONTINUED STRENGTH, WE SHORTENED THE
FUND'S DURATION... LATER IN THE FISCAL YEAR.
- --------------------------------------------------------------------------------
[SIDENOTE]
FUND
HIGHLIGHTS
- - The Fund's emphasis on investing in corporate debt and mortgage-backed
securities provided a yield advantage that helped to cushion the impact of
a generally declining bond market.
- - To position the Fund more defensively, we increased our holdings of
floating-rate securities. These issues tend to maintain their value in
rising interest rate environments.
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[SIDENOTE]
AVERAGE ANNUAL
TOTAL RETURNS
AS OF 2-29-00
INVESTOR CLASS
--------------
1-year 5.24%
3-year 5.38%
5-year 6.14%
10-year 6.82%
Since Inception 7.01%
(11-25-88)
ADVISOR CLASS(1)
-------------
1-year 4.71%
3-year 4.96%
5-year 5.74%
10-year 6.43%
Since Inception 6.63%
(11-25-88)
INSTITUTIONAL CLASS(2)
-------------------
1-year 5.42%
3-year 5.44%
5-year 6.17%
10-year 6.83%
Since Inception 7.03%
(11-25-88)
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[SIDENOTE]
PORTFOLIO STATISTICS
AS OF 2-29-00
INVESTOR CLASS
30-day annualized yield(3) 6.46%
ADVISOR CLASS
30-day annualized yield(3) 6.53%
INSTITUTIONAL CLASS
30-day annualized yield(3) 7.28%
Average maturity(4) 0.5 years
Average quality rating(5) A
- --------------------------------------------------------------------------------
From time to time, the Fund's advisor has waived its management fee
and/or absorbed Fund expenses, which has resulted in higher returns.
(1) The performance of the Advisor Class shares prior to 8-30-99 is based on
the Fund's Investor Class shares' performance, restated for the higher
expense ratio of the Advisor Class shares. Please consult a prospectus
for information about all share classes.
(2) The performance of the Institutional Class shares prior to 8-30-99 is based
on the Fund's Investor Class shares' performance. Please consult a
prospectus for information about all share classes.
(3) Yields are historical and do not represent future yields. Yields may
fluctuate. Yields are as of 2-29-00.
2
<PAGE>
Wyndham International. The bond is rated Aa2 by Moody's and A+ by Standard and
Poor's rating agencies. The interest rate on the bond adjusts monthly, allowing
its yield to go up as interest rates rise.
Until there is an easing in the tightness of domestic labor markets or other
signs that inflationary pressures are abating, it appears that the Fed will
continue to raise rates. We believe, however, that they will maintain their
pattern of moderate incremental hikes, and that the floating-rate positions your
Fund owns should allow it to perform well in this environment.
We thank you for your investment in the Strong Advantage Fund. We look forward
to continuing to help you pursue your important financial goals.
[GRAPH]
GROWTH OF AN ASSUMED $10,000 INVESTMENT
FROM 11-25-88 TO 2-29-00
<TABLE>
<CAPTION>
Lipper
Ultra Short
Advantage 1 Yr Obligation
Fund Treasury Bill Funds
<S> <C> <C> <C>
Oct-88 10,000 10,000 10,000
Dec-88 10,102.8 10,038.7 10,075.1
Dec-90 11,783.9 12,036.8 11,894.4
Dec-92 14,135 13,721.1 13,382.3
Dec-94 15,792.6 14,621 14,373.8
Dec-96 18,112.1 16,700.6 16,230.4
Dec-98 20,205.4 18,765.6 18,096.6
Feb-00 21,450.2 19,710.4 19,090.9
</TABLE>
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 Smith Barney 1-Year Treasury Benchmark-on-the-Run Index ("1-Year
Treasury Bill") and the Lipper Ultra Short Obligation Funds 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 vary, and you may have a gain or loss when you sell
shares. To equalize the time periods, the indexes' performances were prorated
for the month of November 1988. This graph is based on Investor Class shares
only; performance for other classes will vary due to differences in fee
structures.
- --------------------------------------------------------------------------------
(4) The Fund's average maturity includes the effect of futures.
(5) For purposes of this averaging rating, the Fund's short-term debt
obligations have been assigned a long-term rating by the Advisor.
* The Salomon Smith Barney 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 Funds 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.
- --------------------------------------------------------------------------------
[SIDENOTE]
YOUR FUND'S
APPROACH
The Strong Advantage Fund seeks current income with a very low degree of
share-price fluctuation. The Fund invests primarily in very short-term,
corporate, and mortgage- and asset-backed bonds. It invests primarily in higher-
and medium-quality bonds. To enhance its return potential, the Fund also invests
a portion of its assets in bonds that have longer maturities or are of lower
quality (high-yield or junk bonds), though it may not invest in bonds rated
below BB. The managers focus upon high-yield bonds rated BB with positive or
improving credit fundamentals. To help limit changes in share price, the Fund's
average maturity is usually one year or less. To a limited extent, the Fund may
also invest in foreign securities and mortgage- and asset-backed securities.
- --------------------------------------------------------------------------------
[SIDENOTE]
MARKET
HIGHLIGHTS
- - The United States economy continued to show great strength, as demonstrated
by the 4.1% growth in GDP for 1999. This led the Federal Reserve Board to
engage in a succession of interest rate hikes. Over the twelve months ended
February 29, 2000, the Federal Funds rate was raised a full percentage
point, to 5.75%.
- - Market interest rates rose at a somewhat higher rate. The yield on the
one-year Treasury bill rose from 4.88% to 6.23%.
- - Heavy new-issue supply in the corporate and mortgage-backed bond markets
depressed prices in the first three quarters of the year. Much of this was
reversed in the fourth quarter, when corporates and mortgages outperformed
Treasuries.
3
<PAGE>
THE STRONG MUNICIPAL ADVANTAGE FUND
-----------------------------------
PERSPECTIVES
FROM THE MANAGER
/s/ Steven D. Harrop
Steven D. Harrop
Portfolio Manager
- --------------------------------------------------------------------------------
In a year that was tagged by many observers as one of the worst years for
fixed-income investments on record, this Fund was successful, primarily by doing
just what it was designed to do. That is, it provided attractive levels of
tax-free yield with a small degree of share-price fluctuation. As interest rates
rose in response to the Fed's raising of the Federal Funds target rate over the
course of the year and several holdings experienced a deterioration in credit
quality, there were slight declines in the Fund's NAV. Those declines, totaling
eight cents over the twelve-month period, were constrained by the Fund's short
average maturity and generally stable holdings.
Of course, another part of the Fund's design is that it is intended to provide
higher yields than tax-free money market funds. The Fund has succeeded in that
aim, without taking on undue risk. We keep about 30% of the Fund's assets in
daily and weekly issues, which provide a high degree of liquidity and also help
to anchor the Fund's NAV. To help boost the Fund's yield, we allocated
approximately 26% of our assets to carefully selected callable bonds. The
remainder of assets is invested in very short-maturity securities, or securities
with put features or sinking fund requirements. Our approach has succeeded in
providing attractive tax-free yields with only minor share-price fluctuation in
a variety of market environments--including the very difficult conditions
recently seen.
- --------------------------------------------------------------------------------
OUR APPROACH HAS SUCCEEDED IN PROVIDING ATTRACTIVE TAX-FREE
YIELDS WITH ONLY MINOR SHARE-PRICE FLUCTUATION IN A VARIETY
OF MARKET ENVIRONMENTS.
- --------------------------------------------------------------------------------
[SIDENOTE]
FUND
HIGHLIGHTS
- - For the year ended February 29, 2000, the Strong Municipal Advantage Fund
returned 2.70%, while the Lehman Brothers Municipal 1 Year Bond Index
returned 2.68% and the Lipper Short Municipal Debt Funds Index returned
1.82% for the same period.
- - The Fund's 30-day annualized yield was quoted at 4.70%. This represents a
taxable equivalent yield of 7.34% for investors in the 36% tax bracket.
- - The Fund's average portfolio maturity, at 0.9 years, remains very near its
maximum level. The portfolio's average credit quality remains at A.
- --------------------------------------------------------------------------------
[SIDENOTE]
AVERAGE ANNUAL
TOTAL RETURNS
AS OF 2-29-00
1-year 2.70%
3-year 4.05%
Since Inception 4.41%
(11-30-95)
- --------------------------------------------------------------------------------
[SIDENOTE]
PORTFOLIO
STATISTICS
AS OF 2-29-00
30-day annualized yield(1) 4.70%
Average maturity(2) 0.9 years
Average quality rating(3) A
- --------------------------------------------------------------------------------
(1) Yield is annualized for the 30 days ended 2-29-00, is historical, and will
vary. The Fund's Advisor has temporarily waived its management fee of 0.01%
and absorbed expenses of 0.05%. Otherwise, current yield would have been
4.64% and returns would have been lower.
(2) The Fund's average effective maturity includes the effect of futures.
(3) For purposes of this average rating, the Fund's short-term debt obligations
have been assigned a long-term rating by the Advisor.
4
<PAGE>
That said, we're mindful that many investors turn to this Fund for short-term
needs, and thus take note of even small changes in NAV--and indeed a small
decline was almost inevitable during such a steep bear market. For those
investors, we'd like to point out the power of the Fund's yield advantage over
municipal money market funds to make up the difference, even in unfavorable
circumstances. By our calculations, it would take 11 months for the Fund to pay
out enough incremental yield (relative to muni money market funds) to make up
for this past year's unusual eight-cent decline in NAV.
In addition, we're hopeful that yield alone won't be the only compensation
coming to fixed-income investors who've endured the past year's turbulent
markets. With inflation at its current low levels, it appears clear that if the
economy shows any sign of weakness, the upside potential for bonds could be
significant. In the meantime, the U.S. expansion has had the effect of
strengthening most municipal credits, with upgrades outnumbering downgrades
seven to one. We anticipate that trend continuing.
We thank you for your investment in the Strong Municipal Advantage Fund. We are
committed to pursuing tax-free investment income on your behalf.
[GRAPH]
GROWTH OF AN ASSUMED $10,000 INVESTMENT
FROM 11-30-95 TO 2-29-00
<TABLE>
<CAPTION>
THE STRONG Lehman Brothers Lipper Short
MUNICIPAL Municipal 1 Year Municipal Debt
ADVANTAGE FUND Bond Index* Funds Index*
<S> <C> <C> <C>
Nov-95 10,000 10,000 10,000
Dec-95 10,085.5 10,037.7 10,041.3
Dec-96 10,576.6 10,473.4 10,415.7
Dec-97 11,117.2 10,959.2 10,918.1
Dec-98 11,625.5 11,478.7 11,417.6
Dec-99 11,974.0 11,814.4 11,654.5
Feb-00 12,010.7 11,895.0 11,702.2
</TABLE>
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 gain
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.
- --------------------------------------------------------------------------------
[SIDENOTE]
YOUR FUND'S
APPROACH
THE STRONG MUNICIPAL ADVANTAGE FUND SEEKS FEDERALLY TAX-EXEMPT CURRENT INCOME
WITH A VERY LOW DEGREE OF SHARE-PRICE FLUCTUATION. THE FUND INVESTS PRIMARILY IN
VERY SHORT-TERM MUNICIPAL BONDS. IT INVESTS PRIMARILY IN HIGHER AND MEDIUM
QUALITY MUNICIPAL BONDS. TO ENHANCE ITS RETURN POTENTIAL, THE FUND ALSO INVESTS
A PORTION OF ITS ASSETS IN BONDS THAT HAVE LONGER MATURITIES OR ARE OF LOWER
QUALITY (HIGH-YIELD OR JUNK BONDS), THOUGH IT MAY NOT INVEST IN BONDS RATED
BELOW BB. THE MANAGERS FOCUS UPON HIGH-YIELD BONDS RATED BB WITH POSITIVE OR
IMPROVING CREDIT FUNDAMENTALS. TO HELP LIMIT CHANGES IN SHARE PRICE, THE FUND'S
AVERAGE MATURITY IS USUALLY ONE YEAR OR LESS. TO A LIMITED EXTENT, THE FUND MAY
ALSO INVEST IN MORTGAGE AND ASSET-BACKED SECURITIES.
- --------------------------------------------------------------------------------
[SIDENOTE]
MARKET
HIGHLIGHTS
- - The past year was marked by one of the most severe bear markets for
fixed-income securities in memory.
- - Interest rates increased significantly over the year, with the Federal
Reserve raising rates by a total of 100 basis points in four separate
hikes.
- - Although the market was tough across all maturities, shorter-term
securities weathered the storm better than longer-term bonds.
- --------------------------------------------------------------------------------
* 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.
5
<PAGE>
THE STRONG HERITAGE MONEY FUND
-------------------------------
PERSPECTIVES
FROM THE MANAGER
/s/ Jay N. Mueller
Jay N. Mueller
Portfolio Manager
- -------------------------------------------------------------------------------
Interest rates rose steadily over the past twelve months, as the emerging
recovery in Asia helped to restore some sense of normalcy to the markets. Money
market rates rose right along with Federal Reserve rate hikes. The last of the
Fed's four 25-basis-point rate hikes occurred on February 2, 2000. That increase
brought the Federal Funds target rate to 5.75%, a level last seen in early 1996.
Credit spreads moderated from the extremes seen in the fourth quarter of 1998,
when difficulties in global markets sparked a flight to quality and drove down
yields on Treasuries. Over the course of the past year, the yield curve at first
flattened, and then inverted, as the bearish force of Federal Reserve rate hikes
collided with the bullish impulse created by the U.S. government's plan to buy
back certain long-term Treasury issues. This buyback is a product of the
unexpectedly strong economy. By boosting the government's tax revenues, economic
strength first allowed the Treasury to cut the size of its debt auctions. Now,
as budget surpluses have continued to pile up, the Treasury has made plans to
repurchase outstanding debt held by the public and retire it. The possible
result--a shortage of government-guaranteed long-term bonds--sparked a buying
frenzy in ten- to thirty-year Treasuries in January and February, even as
shorter-term securities languished.
- -------------------------------------------------------------------------------
WE EXPECT TO REMAIN RELATIVELY DEFENSIVE UNTIL WE DETERMINE THAT FED TIGHTENING
HAS RUN ITS COURSE.
- -------------------------------------------------------------------------------
[SIDENOTE]
FUND
HIGHLIGHTS
- - We kept this Fund in a conservative posture through the end
of calendar year 1999. This was appropriate, given an environment in which
concerns related to Y2K triggered a significant increase in money market
rates for securities maturing in 2000 and beyond. Of course, those concerns
proved to be largely misplaced.
- - Over the year, we have made very high-quality issues central to the
portfolio. Securities slightly down the quality scale did not provide
sufficient incremental return to compensate for their added risk.
- - Asset-backed commercial paper continued to play an important role in the
portfolio, as we found it a high-quality source of relative value. We did,
however, trim this position back somewhat during the first half of the
fiscal year.
- -------------------------------------------------------------------------------
[SIDENOTE]
AVERAGE ANNUAL
TOTAL RETURNS
AS OF 2-29-00
1-year 5.12%
3-year 5.34%
Since Inception 5.52%
(6-29-95)
- -------------------------------------------------------------------------------
[SIDENOTE]
YIELD SUMMARY(1)
AS OF 2-29-00
7-day current yield 5.58%
7-day effective yield 5.74%
Average maturity 42 days
- -------------------------------------------------------------------------------
(1) Yields are annualized for the 7-day period ended 2-29-00. Effective yields
reflect the compounding of income. Yields are historical and do not
represent future results. Yields may fluctuate. The Fund's Advisor
temporarily waived 0.11% in management fees and absorbed 0.05% in expenses
for the Fund. Otherwise, the Fund's current yield would have been 5.42%,
and its effective yield would have been 5.57%.
6
<PAGE>
Over the year, as the Fed tightened, we maintained an average maturity posture
designed to benefit from the rising short-term rates. Although the worst fears
concerning the Y2K bug were never realized, Y2K concerns did push rates
significantly higher for money market securities maturing after the turn of the
year. "Over-the-turn" rates were typically 6.0% and higher, sometimes as high as
6.5%, while December and shorter rates usually remained in the neighborhood of
5.5%. We dealt with this environment by investing for maximum liquidity around
year-end, taking advantage of the unusual interest rate relationships that
prevailed in the fourth quarter. Our yield-curve strategy was almost entirely
driven by the oddities associated with the Y2K issue. So was our credit posture,
which emphasized the highest-quality investments.
Looking forward, the U.S economy remains on a tear. Although we're not likely to
see a repeat of the 6.9% growth in real GDP seen in 1999's fourth quarter, we do
believe the pace of economic expansion should remain robust. As the Fed
continues its efforts to keep the economy from overheating, however, we also
anticipate additional rate hikes in the first half of the year. We expect to
remain relatively defensive until we determine that Fed tightening has run its
course.
Thank you for your investment and confidence in the Strong Heritage Money Fund.
3-MONTH TREASURY BILL YIELDS
AS OF 2-29-00
[GRAPH]
Aug-98 5.5
Oct-98 5
Dec-98 4.75
Feb-99 4.75
Apr-99 4.75
Jun-99 5
Aug-99 5.25
Oct-99 5.25
Dec-99 5.5
Feb-00 5.78
- -------------------------------------------------------------------------------
[SIDENOTE]
YOUR FUND'S
APPROACH
THE STRONG HERITAGE MONEY FUND SEEKS CURRENT INCOME, A STABLE SHARE PRICE, AND
DAILY LIQUIDITY. THE FUND IS MANAGED TO PROVIDE ATTRACTIVE YIELDS AND A STABLE
SHARE PRICE OF $1.00. (2) IT INVESTS IN A PORTFOLIO OF HIGH-QUALITY, SHORT-TERM
DEBT SECURITIES ISSUED BY CORPORATIONS, BANKS, AND OTHER FINANCIAL INSTITUTIONS.
- -------------------------------------------------------------------------------
[SIDENOTE]
MARKET
HIGHLIGHTS
- - The one-year period through February 29, 2000, was marked by steadily
rising interest rates. Inflation fears were driven by the combination of a
continued economic strength and rising oil prices.
- - With its four rate increases over the year, the Federal Reserve took back
all of its rate cuts from the previous year, then tightened by an
additional 25 basis points in its continuing efforts to slow down a
super-charged economy.
- - In early 2000, the market for long-term Treasury securities received a
major boost when the federal government announced plans to repurchase and
retire federal debt.
- -------------------------------------------------------------------------------
(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.
7
<PAGE>
THE STRONG INVESTORS MONEY FUND
-------------------------------
PERSPECTIVES
FROM THE MANAGER
/s/ Jay N. Mueller
Jay N. Mueller
Portfolio Manager
- -------------------------------------------------------------------------------
Driven by four rate hikes from the Federal Reserve over the course of the year,
interest rates rose steadily over the past twelve months. Money market rates
rose right along with them. After the Federal Reserve completed the last of
these rate hikes in early February, the Federal Funds target rate stood at
5.75%, a level last seen in early 1996. Credit spreads moved away from the
extremes seen in the fourth quarter of 1998, when difficulties in global markets
sparked a flight to quality and drove down Treasury yields.
Over the course of the year, both bearish and bullish forces played strong roles
in the markets: the chief bearish factor, of course, was the Fed's series of
rate hikes, while the bullish factor came from the government's plan to buy back
certain long-term Treasury issues. These planned buybacks, announced early in
2000, can largely be attributed to the continuing, somewhat unexpected strength
of the economy. The boom has boosted the government's tax revenues, allowing the
Treasury to reduce the amount of new debt it issues. Now budget surpluses have
accumulated to the point that the Treasury wishes to reduce its debt further by
repurchasing outstanding debt held by the public and retire it. The potential
for a shortage of government-guaranteed long bonds led to a buying frenzy among
ten- to thirty-year Treasuries in January and February, even as shorter-term
securities were virtually ignored.
The Fund maintained an average maturity posture appropriate for a rising
interest rate
- -------------------------------------------------------------------------------
OVER THE COURSE OF THE YEAR, BOTH BEARISH AND BULLISH FORCES PLAYED STRONG ROLES
IN THE MARKETS.
- -------------------------------------------------------------------------------
[SIDENOTE]
FUND
HIGHLIGHTS
- - The Fund maintained a conservative posture through the end of calendar year
1999, as concerns posed by the Y2K bug triggered a significant increase in
money market rates for securities maturing in 2000 and beyond.
- - We have emphasized very high-quality issues in the portfolio.
This is because we found the incremental return for moving down the quality
scale too small relative to the additional incremental risk.
- - The Fund continued to emphasize asset-backed commercial paper as a
high-quality source of relative value. We did, however, trim this position
back somewhat during the first half of the fiscal year.
- -------------------------------------------------------------------------------
[SIDENOTE]
AVERAGE ANNUAL
TOTAL RETURNS
AS OF 2-29-00
1-year 5.51%
Since Inception 5.57%
(1-31-98)
- -------------------------------------------------------------------------------
[SIDENOTE[
YIELD
SUMMARY(1)
AS OF 2-29-00
7-day current yield 5.89%
7-day effective yield 6.06%
Average maturity 43 days
- -------------------------------------------------------------------------------
(1) Yields are annualized for the 7-day period ended 2-29-00. Effective yields
reflect the compounding of income. Yields are historical and do not
represent future results. Yields may fluctuate. The Fund's Advisor
temporarily waived 0.50% in management fees and absorbed 0.16% in expenses
for the Fund. Otherwise, the Fund's current yield would have been 5.23%,
and its effective yield would have been 5.37%.
8
<PAGE>
environment. Our yield-curve strategy and our emphasis on very high-quality
issues were almost entirely driven by the oddities associated with the Y2K
issue. Although the worst fears concerning the Y2K bug proved unfounded, Y2K
concerns did push rates significantly higher for money market securities
maturing after the turn of the year. "Over-the-turn" rates were typically 6.0%
and higher, sometimes as high as 6.5%, while December and shorter rates usually
remained in the neighborhood of 5.5%. We responded by investing for maximum
liquidity around year-end, taking advantage of the unusual interest rate
relationships that prevailed in the fourth quarter.
Looking forward, the U.S. economy is still experiencing highly rapid growth.
Even though we don't expect to see a repeat of 1999's fourth quarter--when real
GDP growth hit 6.9%--anytime soon, we do anticipate that the pace of economic
expansion should remain strong. We fully expect additional rate hikes in the
first half of the year, as the Fed continues its efforts to keep the economy
from overheating. In this environment, we intend to remain relatively defensive
until we determine that Fed tightening has run its course.
Thank you for your investment in the Strong Investors Money Fund. We appreciate
your confidence.
3-MONTH TREASURY BILL YIELDS
AS OF 2-29-00
[GRAPH]
Aug-98 5.5
Oct-98 5
Dec-98 4.75
Feb-99 4.75
Apr-99 4.75
Jun-99 5
Aug-99 5.25
Oct-99 5.25
Dec-99 5.5
Feb-00 5.78
- -------------------------------------------------------------------------------
[SIDENOTE]
YOUR FUND'S
APPROACH
THE STRONG INVESTORS MONEY FUND SEEKS CURRENT INCOME, A STABLE SHARE PRICE, AND
DAILY LIQUIDITY. THE FUND IS MANAGED TO PROVIDE ATTRACTIVE YIELDS AND A STABLE
SHARE PRICE OF $1.00. (2) IT INVESTS IN A PORTFOLIO OF HIGH-QUALITY, SHORT-TERM
DEBT SECURITIES ISSUED BY CORPORATIONS, BANKS, AND OTHER FINANCIAL INSTITUTIONS.
- -------------------------------------------------------------------------------
[SIDENOTE]
MARKET
HIGHLIGHTS
- - Interest rates rose significantly during the twelve months ended February
29, 2000, as a super-strong economy combined with rising oil prices to
spark worries of inflation.
- - The Federal Reserve reacted to the waning of late 1998's financial meltdown
by taking back its 0.75% of rate cuts in three measured steps. It then
added a fourth tightening move to slow the still-raging economy.
- - The market for long-term Treasury securities rallied sharply in early 2000
when the government announced plans to repurchase and retire federal debt.
- -------------------------------------------------------------------------------
(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.
9
<PAGE>
THE STRONG MONEY MARKET FUND
----------------------------
PERSPECTIVES
FROM THE MANAGER
/S/ Jay N. Mueller
Jay N. Mueller
Portfolio Manager
Interest rates rose steadily over the past twelve months, as markets returned to
some degree of normalcy as 1998's Asian economic crisis and its spillover
effects began to be resolved. Money market rates rose in step with Federal
Reserve rate hikes, which occurred in four 25-basis-point increments. The final
increase, which took place in early February, brought the Federal Funds target
rate to 5.75%. That level was last seen in early 1996. Over the course of the
year, the yield curve at first flattened, and then inverted as the bearish force
of Federal Reserve rate hikes collided with the bullish impulse created by the
U.S. government's plan to buy back certain long-term Treasury issues.
As the Fed tightened, we maintained an average maturity posture that was
designed to benefit from the rise in short-term rates. Though the worst fears
concerning the Y2K bug were never realized, Y2K concerns did push rates
significantly higher for money market securities maturing after the turn of the
year. "Over-the-turn" rates were typically 6.0% and higher, sometimes as high as
6.5%, while December and shorter rates usually remained in the neighborhood of
5.5%. We responded by investing for maximum liquidity around year-end, taking
advantage of the unusual interest rate relationships that prevailed in the
fourth quarter. Our yield-curve strategy was almost entirely driven by the
oddities associated with the Y2K issue. So was our credit posture, which
emphasized the highest-quality investments.
- -------------------------------------------------------------------------------
WE BELIEVE THE PACE OF ECONOMIC EXPANSION SHOULD REMAIN ROBUST.
- -------------------------------------------------------------------------------
[SIDENOTE]
FUND
HIGHLIGHTS
- - The Fund maintained a conservative posture through the end of calendar year
1999, as concerns posed by the Y2K bug triggered a significant increase in
money market rates for securities maturing in 2000 and beyond.
- - We have emphasized very high-quality issues in the portfolio. This is
because we found the incremental return for moving down the quality scale
too small, relative to the additional incremental risk.
- - The Fund continued to emphasize asset-backed commercial paper as a
high-quality source of relative value. We did, however, trim this position
back somewhat during the first half of the fiscal year.
- -------------------------------------------------------------------------------
[SIDNOTE]
AVERAGE ANNUAL
TOTAL RETURNS
AS OF 2-29-00
1-year 4.84%
3-year 5.09%
5-year 5.33%
10-year 5.11%
Since Inception 5.81%
(10-22-85)
- -------------------------------------------------------------------------------
[SIDENOTE
YIELD
SUMMARY(1)
AS OF 2-29-00
7-day current yield 5.35%
7-day effective yield 5.49%
Average maturity 39 days
- -------------------------------------------------------------------------------
(1) Yields are annualized for the 7-day period ended 2-29-00. Effective yields
reflect the compounding of income. Yields are historical and do not
represent future results. Yields may fluctuate. The Fund's Advisor
temporarily absorbed 0.08% in expenses for the Fund. Otherwise, the Fund's
current yield would have been 5.27%, and its effective yield would have
been 5.41%.
10
<PAGE>
The unexpectedly strong economy has boosted the government's tax revenues,
allowing the U.S. Treasury to reduce its issuance of new debt. Budget surpluses
have mounted, leading the Treasury to make plans to repurchase outstanding debt
held by the public and retire it. The possible result--a shortage of
government-guaranteed long bonds--sparked a buying frenzy in ten- to thirty-year
Treasuries in January and February, even as shorter-term securities languished.
Looking forward, the U.S economy remains on a tear. Real Gross Domestic Product
growth of 6.9% in 1999's fourth quarter is unlikely to be duplicated in 2000,
but we believe the pace of economic expansion should remain robust. We
anticipate additional rate hikes in the first half of the year, as the Fed
continues its efforts to cool off an overheating economy. We expect to remain
relatively defensive until we determine that Fed tightening has run its course.
Thank you for your investment in the Strong Money Market Fund. We're proud to be
working with you toward your important financial goals.
3-MONTH TREASURY BILL YIELDS
AS OF 2-29-00
[GRAPH]
Aug-98 5.5
Oct-98 5
Dec-98 4.75
Feb-99 4.75
Apr-99 4.75
Jun-99 5
Aug-99 5.25
Oct-99 5.25
Dec-99 5.5
Feb-00 5.75
- -------------------------------------------------------------------------------
[SIDENOTE]
YOUR FUND'S
APPROACH
THE STRONG MONEY MARKET FUND SEEKS CURRENT INCOME, A STABLE SHARE PRICE, AND
DAILY LIQUIDITY. THE FUND IS MANAGED TO PROVIDE ATTRACTIVE YIELDS AND A STABLE
SHARE PRICE OF $1.00. (2) IT INVESTS IN A PORTFOLIO OF HIGH-QUALITY, SHORT-TERM
DEBT SECURITIES ISSUED BY CORPORATIONS, BANKS, AND OTHER FINANCIAL INSTITUTIONS.
- -------------------------------------------------------------------------------
[SIDNOTE]
MARKET
HIGHLIGHTS
- - Interest rates rose significantly during the twelve months ended February
29, 2000, as a super-strong economy combined with rising oil prices to
spark worries of inflation.
- - The Federal Reserve reacted to the waning of late 1998's financial meltdown
by taking back its 0.75% of rate cuts in three measured steps. It then
added a fourth tightening move to slow the still-raging economy.
- - The market for long-term Treasury securities rallied sharply in early 2000
when the government announced plans to repurchase and retire federal debt.
- -------------------------------------------------------------------------------
(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.
11
<PAGE>
THE STRONG MUNICIPAL MONEY MARKET FUND
--------------------------------------
PERSPECTIVES
FROM THE MANAGERS
/S/ Steven D. Harrop /S/ John C. Bonnell
Steven D. Harrop John C. Bonnell
Portfolio Co-manager Portfolio Co-manager
In sharp contrast to the previous year, over the past twelve months municipal
money market rates rose substantially. The Federal Reserve, trying to put the
brakes on a heavy train rolling downhill--the robust U.S. economy--raised
short-term rates four times last year, for a total of 100 basis points. One-year
municipal yields, as measured by the Bond Buyer one-year note index, increased
by more than one percentage point during the twelve-month period, rising from
2.96% to 4.04%. In this rising interest rate environment, for most of the year,
we maintained a relatively short average maturity that gave us the ability to
take advantage of opportunities as they arose.
After reaching a low of 27 days in January, the Fund's average maturity ended
February at 43 days. This increase resulted in part from purchases we made late
in February, when, in our opinion, the incremental yield available on longer
fixed-rate securities compensated investors appropriately for committing assets
for a longer period. One such buy was a District of Columbia housing bond, rated
in the top short-term category by Standard & Poor's. This issue was bought with
a maturity in March 2001 at a yield of 4.35%--a full 80 basis points higher than
the average weekly variable-rate reset over the past year, and 60 basis points
higher than weekly variable-rate securities were paying at the time we made the
purchase.
- -------------------------------------------------------------------------------
IN THIS RISING INTEREST RATE ENVIRONMENT, FOR MOST OF THE YEAR, WE MAINTAINED A
RELATIVELY SHORT AVERAGE MATURITY THAT GAVE US THE ABILITY TO TAKE ADVANTAGE OF
OPPORTUNITIES AS THEY AROSE.
- -------------------------------------------------------------------------------
[SIDNOTE]
FUND
HIGHLIGHTS
- - As of February 29, 2000, the Fund's 7-day current yield was 3.86%. Its
7-day effective yield, which reflects compounding, was 3.93%. For investors
in the 36% tax bracket, that figure translates into a taxable equivalent
yield of 6.14%.
- - The Fund's average maturity as of February 29 was 43 days.
- - With the Federal Reserve in a tightening mode, we kept the Fund's average
maturity short for most of the year, only investing long (six to thirteen
months) when there was a compelling reason to do so.
- -------------------------------------------------------------------------------
[SIDENOTE]
AVERAGE ANNUAL
TOTAL RETURNS
AS OF 2-29-00
1-year 3.47%
3-year 3.50%
5-year 3.62%
10-year 3.79%
Since Inception 4.15%
(10-23-86)
- -------------------------------------------------------------------------------
[SIDENOTE
YIELD
SUMMARY(1)
AS OF 2-29-00
7-day current yield 3.86%
7-day effective yield 3.93%
Average maturity 43 days
- -------------------------------------------------------------------------------
From time to time, the Fund's advisor has waived its management fee and/or
absorbed Fund expenses, which has resulted in higher returns.
(1) Yields are annualized for the 7 days ended 2-29-00. Effective yields
reflect the compounding of income. Yields are historical and do not
represent future results. Yields will fluctuate.
12
<PAGE>
With the domestic economy still going strong, most municipalities' tax revenues
exceeded expectations. This, in turn, reduced the amount of money they needed to
borrow for cash flow purposes, cutting the new supply of traditional municipal
money market securities. To partially offset this diminished supply,
broker/dealers created synthetic municipal securities by packaging longer-term
municipal bonds into a trust, and attaching features that give holders the right
to tender the securities at certain times. Synthetics, which typically have
weekly or daily interest rate resets, effectively increased the supply of
variable-rate demand notes, a sector in which we found good relative value
throughout most of the year.
Treasury securities were extremely volatile over the past year, reacting to
economic news, Federal Reserve comments, Treasury buyback announcements, and
wild swings in the equity markets. We expect this will continue going forward.
The Federal Reserve has made it clear that they will act to stem future
inflation as necessary. We will, however, purchase longer-term securities when
their yields are sufficient to compensate for the risk that interest rates will
rise. In managing the Fund, we continue to apply the same strategy that has
contributed to the Fund's outperformance in the past--buying the best relative
value in the market at any given time.
Thank you for your confidence and continued investment in the Strong Municipal
Money Market Fund.
EQUIVALENT TAXABLE YIELDS
AS OF 2-29-00
<TABLE>
<CAPTION>
YOUR TAX-EXEMPT
EFFECTIVE YIELD OF
MARGINAL 3.93% IS EQUIVALENT
JOINT RETURN SINGLE RETURN TAX RATE TO A TAXABLE YIELD OF:
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
$43,051-104,050 $25,751-62,450 28.0% 5.46%
- -----------------------------------------------------------------------------------
$104,051-158,550 $62,451-130,250 31.0% 5.70%
- -----------------------------------------------------------------------------------
$158,551-283,150 $130,251-283,150 36.0% 6.14%
- -----------------------------------------------------------------------------------
Over $283,150 Over $283,150 39.6% 6.51%
- -----------------------------------------------------------------------------------
</TABLE>
The chart reflects 2000 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 2000 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.
- -------------------------------------------------------------------------------
[SIDENOTE]
YOUR FUND'S
APPROACH
THE STRONG MUNICIPAL MONEY MARKET FUND SEEKS FEDERALLY TAX-EXEMPT CURRENT
INCOME, A STABLE SHARE PRICE, AND DAILY LIQUIDITY. THE FUND IS MANAGED TO
PROVIDE ATTRACTIVE YIELDS AND A STABLE SHARE PRICE OF $1.00. (2) IT INVESTS IN A
PORTFOLIO OF HIGH-QUALITY, SHORT-TERM DEBT SECURITIES PRIMARILY ISSUED BY STATES
AND THEIR POLITICAL SUBDIVISIONS, SUCH AS MUNICIPALITIES.
- -------------------------------------------------------------------------------
[SIDENOTE]
MARKET
HIGHLIGHTS
- - Following interest rate increases by the Federal Reserve--and in
anticipation of additional rate hikes in the near future--municipal money
market rates rose substantially during the twelve months ended February 29,
2000.
- - The supply of traditional municipal money securities continued to decrease,
while the supply of "synthetic" municipal money securities increased.
- - U.S. Treasury securities have been very volatile, reacting to comments from
the Federal Reserve, announcements of Treasury buybacks, and volatility in
the equity markets.
- -------------------------------------------------------------------------------
(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.
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 BB and below are considered "junk bonds." Typically, the lower a bond's
rating, the higher yield it must pay in order to compensate the bondholder 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 on this page).
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's 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>
<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES February 29, 2000
- -----------------------------------------------------------------------------------------
STRONG ADVANTAGE FUND
- -----------------------------------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS 42.2%
Advance Bank Australia Floating Rate
Subordinated Notes, 6.87%, Due 3/14/06 (c) $ 15,000,000 $ 15,037,500
Allfirst Preferred Capital Trust Subordinated
Floating Rate Capital Trust Enhanced
Securities, 7.54%, Due 7/15/29 (c) 15,000,000 14,825,925
Blackstone Hotel Acquisitions Company Debt
Unit (Medium-Term Structured Enhanced
Return Trusts 1998), Series R-38, 7.0938%,
Due 6/30/03 (Acquired 7/30/98; Cost
$26,000,000) (b) 26,000,000 25,837,500
CMS Energy Corporation Senior Notes, 8.00%,
Due 7/01/11 (Remarketing Date 7/01/01) 20,000,000 19,774,280
CSC Holdings, Inc. Senior Subordinated Notes,
9.875%, Due 5/15/06 12,840,000 13,401,750
Central Fidelity Capital Trust I Floating Rate
Notes, Series A, 7.04%, Due 4/15/27 7,500,000 7,436,760
Citicorp Floating Rate Notes:
Series W, 6.125%, Due 11/27/35 10,000,000 8,650,000
Series X, 6.0375%, Due 11/27/35 10,000,000 8,600,000
DLJ Leveraged Loan Fund LLC/DLJ Leveraged
Loan Corporation Senior Secured Floating
Rate Notes, Series 1A, Class A2, 6.9513%,
Due 3/15/05 (b) (c) 7,000,000 6,787,760
Dime Bancorp, Inc. Notes, 7.00%, Due 7/25/01 15,000,000 14,755,065
Dual Drilling Company Senior Subordinated
Notes, 9.875%, Due 1/15/04 18,290,000 18,891,741
First Maryland Capital I Variable Rate
Subordinated Capital Income Securities,
7.04%, Due 1/15/27 19,500,000 19,405,152
GS Escrow Corporation Floating Rate Senior
Notes, 7.0488%, Due 8/01/03 120,300,000 114,911,883
HRPT Properties Trust Floating Rate Notes,
7.28%, Due 7/09/07 (Remarketing
Date 7/10/00) 24,000,000 23,987,040
HSB Capital I Floating Rate Securities,
Series A, 6.95%, Due 7/15/27 9,000,000 8,439,687
Halyard CBO I, Ltd./Halyard CBO Corporation
Senior Secured Floating Rate Notes, Series 1A,
Class A, 6.42%, Due 3/24/10 (b) (c) 38,700,000 38,235,600
Huntington Capital I Variable Rate Capital
Income Securities, 6.7488%, Due 2/01/27 11,500,000 10,800,259
Imperial Capital Trust I Guaranteed Capital
Securities, 9.98%, Due 12/31/26 800,000 747,497
Lilly Del Mar, Inc. Floating Rate Capital
Securities, 7.2975%, Due 8/05/29 (b) 60,000,000 60,727,320
Lyondell Chemical Company Guaranteed
Term Loan, Tranche E, 9.755%, Due 6/30/06 14,887,500 15,278,297
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 28,767,000
Mercantile Capital Trust I Floating Rate
Pass-Thru Securities, 6.8988%, Due 2/01/27 10,000,000 9,738,750
MetroNet Communications Corporation
Senior Yankee Notes:
10.625%, Due 11/01/08 920,000 1,045,351
12.00%, Due 8/15/07 107,390,000 121,526,605
NBD Bancorp, Inc. Subordinated Floating
Rate Notes, 6.4375%, Due 12/18/05 (c) 24,530,000 24,431,218
NTC Capital Trust II Floating Rate Capital
Securities, 6.63%, Due 4/15/27 (c) 13,805,000 13,335,216
NWA Trust Structured Enhanced Return
Trusts 1998, 8.935%, Due 4/15/11 (b) 2,500,000 2,237,500
National Commerce Capital Trust Floating
Rate Pass-Thru Securities, 6.9838%,
Due 4/01/27 10,000,000 9,740,430
Niagara Mohawk Power Corporation Senior
Notes, Series C, 7.125%, Due 7/01/01 $ 13,156,097 $ 13,027,232
Nordbanken AB Subordinated Floating Rate
Medium-Term Yankee Bonds, 6.62%,
Due 3/29/49 18,000,000 17,721,000
Qwest Communications International, Inc.
Senior Notes, Series B, 10.875%,
Due 4/01/07 (c) 6,000,000 6,648,936
Restructured Asset Securities Enhanced
Returns Floating Rate Notes, Series
1998-C-10-1, 7.17%, Due 6/18/01
(Acquired 9/25/98; Cost $9,000,000) (b) 9,000,000 9,018,522
Salomon Brothers, Inc. Medium-Term Floating
Rate Notes/Interest Rate Swap, 5.23%,
Due 9/30/03 4,400,000 4,397,360
Skandinaviska Enskilda Banken Subordinated
Floating Rate Medium-Term Yankee Bonds,
7.1813%, Due 3/29/49 4,000,000 3,980,000
Spintab AB Floating Rate Subordinated
Yankee Notes, 6.715%, Due 12/29/49 (b) (c) 50,000,000 49,635,200
Star Capital Trust I Floating Rate Securities,
6.8863%, Due 6/15/27 5,000,000 4,894,390
Stop & Shop Companies, Inc. Senior
Subordinated Notes, 9.75%, Due 2/01/02 5,000,000 5,192,940
SunTrust Capital III Floating Rate Notes,
6.7713%, Due 3/15/28 (c) 22,000,000 21,170,600
Swedbank Floating Rate Debt Unit
(Medium-Term Structured Enhanced
Return Trusts 1996):
Series R-34, 7.23%, Due 11/10/02 (b) 25,000,000 24,000,000
Series R-35, 6.95%, Due 11/10/02 (b) 20,000,000 19,200,000
Tele-Communications, Inc. Senior Notes,
9.65%, Due 10/01/03 (c) 10,872,000 11,216,153
Texas-New Mexico Power Company Secured
Debentures, 10.75%, Due 9/15/03 8,000,000 8,125,440
Time Warner, Inc. Pass-Thru Asset Trust
Securities, Series 1997-1, 6.10%,
Due 12/30/01 (b) (c) 28,185,000 27,569,327
Triton Energy, Ltd./Triton Energy Corporation
Senior Notes, 8.75%, Due 4/15/02 34,971,000 34,971,000
Triumph Funding, Ltd. Medium-Term
Floating Rate Notes, Class A, 6.7338%,
Due 12/30/03 (b) 10,000,000 10,007,070
Union Bank of Norway Subordinated Floating
Rate Medium-Term Yankee Notes, 6.39%,
Due 4/24/08 20,000,000 19,450,000
Union Bank of Norway Variable Rate Bonds,
7.35%, Due 12/29/49 (b) 29,000,000 28,056,050
Unisys Corporation Senior Notes, 12.00%,
Due 4/15/03 32,000,000 34,080,000
Waste Management, Inc. Senior Notes, 6.125%,
Due 7/15/01 10,405,000 9,986,407
- -----------------------------------------------------------------------------------------
Total Corporate Bonds (Cost $1,038,613,599) 1,019,700,713
- -----------------------------------------------------------------------------------------
Non-Agency Mortgage &
Asset-Backed Securities 35.5%
AFC Mortgage Loan Trust Variable Rate
Asset-Backed Certificates, Series 1994-1,
Class 2A-1, 6.926%, Due 6/25/25 296,419 295,199
AMRESCO Residential Securities Corporation
Mortgage Loan Trust Pass-Thru Certificates,
Series 1996-4, Class A4, 7.25%, Due 10/25/23 5,306,644 5,282,526
Airplanes Trust 1998 Floating Rate Refinancing
Pass-Thru Certificates, Series 1R, Class B,
6.635%, Due 3/15/19 35,271,630 34,205,897
BCF LLC Mortgage Pass-Thru Certificates,
Series 1997-R2, Class 3-A1, 7.00%,
Due 12/25/35 (b) 1,982,687 1,975,222
</TABLE>
15
<PAGE>
<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) February 29, 2000
- -----------------------------------------------------------------------------------------
STRONG ADVANTAGE FUND (continued)
- -----------------------------------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Bear Stearns Commercial Mortgage Securities,
Inc. Variable Rate Commercial Mortgage
Pass-Thru Securities, Series 1999-WYN1,
Class B, 7.155%, Due 7/03/09 (b) $17,760,000 $17,782,200
Bear Stearns Mortgage Securities, Inc. Mortgage
Pass-Thru Certificates, Series 1998-1,
Class 2-A-2, 6.35%, Due 3/25/28 13,879,314 13,762,520
CDC Securitization Corporation Floating Rate
Pass-Thru Certificates, Series 1999-FL1,
Class B, 6.5688%, Due 12/14/02 (b) 15,972,000 15,962,097
COMM Floating Rate Commercial Mortgage
Pass-Thru Certificates, Series 2000-FL1A,
Class B, 6.35%, Due 10/16/02 (b) 9,165,000 9,167,841
CORE, Ltd. Interest Rate Swap, Series 1998-1X,
Class B2, 4.12%, Due 1/16/06 (Acquired
7/27/98; Cost $14,044,000) (b) 14,044,000 13,880,941
California Infrastructure & Economic
Development Bank Special Purpose Trust
Certificates - San Diego Gas & Electric
Company, Series 1997-1, Class A3, 6.07%,
Due 3/25/03 7,500,000 7,453,762
Cargill Lease Receivables Trust Senior
Lease-Backed Certificates, Series 1996-A,
Class A-2, 6.43%, Due 12/20/05 2,648,307 2,617,269
Centex Home Mortgage LLC Variable Rate
Certificates, Series 1999-1, 7.7075%,
Due 9/20/04 (b) 12,000,000 11,992,560
Chase Mortgage Finance Corporation
Mortgage Pass-Thru Certificates, Series
1990-G, Class A-Z1, 9.50%, Due 12/25/21 455,560 455,560
Chase Mortgage Finance Corporation Variable
Rate Mortgage Pass-Thru Certificates:
Series 1992-3, Class B7, 7.7742%, Due 10/28/23 1,579,179 1,574,252
Series 1992-3, Class B8, 7.7742%, Due 10/28/23 788,546 786,086
Series 1993-3, Class B6, 7.3953%, Due 10/30/24
(Acquired 5/20/99; Cost $637,930) (b) 636,339 628,582
Series 1993-3, Class B7, 7.3953%, Due 10/30/24
(Acquired 5/20/99; Cost $2,736,910) (b) 2,730,084 2,697,241
Citicorp Mortgage Securities, Inc. Adjustable
Rate Real Estate Mortgage Investment Conduit
Pass-Thru Certificates, Series 1992-7,
Class A-1, 7.011%, Due 3/25/22 2,784,964 2,858,483
Citicorp Mortgage Securities, Inc. Real Estate
Mortgage Investment Conduit Pass-Thru
Certificates, Series 1992-10, Class B, 8.00%,
Due 6/25/22 (b) 8,187,242 8,132,101
Clydesdale CBO I, Ltd./Clydesdale CBO I, Inc.
Senior Secured Floating Rate Bonds,
Series 1A, Class A1, 6.9313%, Due 3/25/11 (b) 5,000,000 5,034,400
Coast-Plymouth Tax Lien Capital LLC
Collateral Variable Rate Bonds, Series 1999-A,
Class A, 6.76%, Due 11/15/04 (b) 14,359,080 14,249,090
Commercial Mortgage Acceptance Corporation
Variable Rate Mortgage Pass-Thru Certificates,
Series 1996-C2, Class A2, 7.0387%,
Due 9/15/23 (b) 3,982,298 3,937,159
ContiMortgage Home Equity Loan Trust
Pass-Thru Certificates, Series 1997-4, Class A4,
6.30%, Due 7/15/12 15,000,000 14,867,325
ContiSecurities Residual Corporation
ContiMortgage Net Interest Margin Notes,
Series 1997-A, 7.23%, Due 7/16/28 (Acquired
9/18/97; Cost $4,047,640) (b) 4,047,640 2,104,773
CoreStates Home Equity Trust Home Equity
Loan Certificates, Series 1993-1, Class B,
7.50%, Due 8/15/07 5,873,445 5,876,646
DLJ Mortgage Acceptance Corporation Variable
Rate Mortgage Pass-Thru Certificates:
Series 1990-2, Class A, 6.8739%, Due 1/25/22 $ 4,034,064 $ 3,981,762
Series 1991-3, Class A1, 6.8264%, Due 2/20/21 512,791 513,524
Delta Funding Home Equity Loan Trust Interest
Only Asset-Backed Certificates, Series 1999-2,
Class F, 6.00%, Due 6/15/02 23,724,000 1,705,281
EQCC Home Equity Loan Trust Variable Rate
Asset-Backed Notes, Series 1993-4,
Class A, 5.725%, Due 12/15/08 6,989,827 6,832,311
Empire Funding Home Loan Owner Trust
Asset-Backed Notes, Series 1997-4,
Class A-3, 7.11%, Due 7/25/14 2,000,000 1,988,670
Equipment Pass-Thru Investment Certificates
Trust Floating Rate Senior Certificates,
Series 1996-1:
Class A, 7.1813%, Due 9/25/09 (Acquired
6/14/96; Cost $4,650,000) (b) 4,650,000 4,656,510
Class B, 7.6925%, Due 9/25/09 (Acquired
7/01/96; Cost $5,115,000) (b) 5,115,000 5,131,879
Class C, 11.3175%, Due 9/25/09 (Acquired
6/28/96; Cost $3,577,055) (b) 3,524,192 3,515,029
The Equitable Life Assurance Society of the
United States Collateralized Floating Rate
Notes, Series D-2, 6.8425%, Due 5/15/03 (b) 12,000,000 11,741,820
The Equitable Life Assurance Society of the
United States Floating Rate Notes,
Series 174, Class A2, 6.1525%, Due 5/15/03 (b) 9,500,000 9,467,367
Financial Asset Securitization, Inc. Mortgage
Participation Securities, Series 1997-NAMC 2,
Class FXA-8, 10.00%, Due 7/25/27 2,081,595 2,117,198
FirstPlus Home Loan Owner Trust Asset-Backed
Certificates, Series 1996-2, Class A-6, 7.85%,
Due 8/20/13 2,814,147 2,813,485
Franchise Finance Corporation of America
Floating Rate Notes, Series 1997-1:
Class D2, 6.98%, Due 6/18/13 (b) 5,726,000 4,923,444
Class E2, 7.23%, Due 1/18/14 (b) 2,290,000 1,884,968
Fund America Investors Corporation Variable
Rate Senior Pass-Thru Certificates,
Series 1993-A, Class A-1, 7.0215%, Due 6/25/23 9,389,126 9,472,531
GGP/Homart Floating Rate Commercial
Mortgage-Backed Securities, Series 1999-C1,
Class C, 6.70%, Due 6/10/03 (b) 10,000,000 10,000,000
GS Mortgage Securities Corporation II
Commercial Mortgage Floating Rate
Pass-Thru Certificates, Series 1998-GS1,
Class D, 6.685%, Due 12/13/12 (b) 14,935,890 14,952,096
G3 Mortgage Reinsurance, Ltd. Floating Rate
Mortgage Default Recourse Notes, Series 1,
Class A, 6.8788%, Due 5/25/08 (b) 5,500,000 5,278,295
Glendale Federal Bank Variable Rate Mortgage
Pass-Thru Certificates, Series 1990-3,
Class A-1, 7.2129%, Due 3/25/30 1,421,451 1,422,752
Glendale Federal Bank Variable Rate Senior
Pass-Thru Mortgage Securities, Series 1990-1,
Class A, 6.9796%, Due 10/25/29 1,861,255 1,859,781
Green Tree Financial Corporation Adjustable
Rate Home Equity Loan Certificates,
Series 1998-C, Class A-1A, 6.00%, Due 7/15/29 7,094,049 7,091,460
Green Tree Financial Corporation Manufactured
Senior Subordinated Pass-Thru Certificates,
Series 1996-5, Class A-4, 7.15%, Due 7/15/27 4,213,189 4,218,055
Greenwich Capital Acceptance, Inc. Variable
Rate Mortgage Pass-Thru Certificates,
Series 1991-1, Class A, 6.6396%,
Due 2/25/21 (b) 10,004,682 9,995,277
Greenwich Capital Trust I Pass-Thru Certificates,
Class A, 6.5896%, Due 2/15/21 (b) 8,316,875 8,509,245
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
STRONG ADVANTAGE FUND (continued)
- -----------------------------------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Headlands Mortgage Securities, Inc. Mortgage
Pass-Thru Certificates, Series 1997-4,
Class A-I-8, 7.25%, Due 11/25/27 $ 4,834,000 $ 4,819,474
Home Savings of America Adjustable Rate
Mortgage Pass-Thru Certificates, Series 14,
Class A, 5.6273%, Due 5/25/27 1,574,686 1,539,256
ICIFC Secured Assets Corporation Mortgage
Pass-Thru Certificates, Series 1997-1,
Class A-7, 7.75%, Due 3/25/28 20,106,235 20,095,076
IndyMac Manufactured Housing Pass-Thru
Certificates, Series 1998-1, Class A-3, 6.37%,
Due 9/25/28 13,339,993 13,202,258
Kmart CMBS Financing, Inc. Floating Rate
Commercial Mortgage Pass-Thru Certificates,
Series 1997-1, Class D, 6.9563%,
Due 3/01/07 (b) 33,000,000 32,828,235
Malan Mortgage Securities Trust Floating
Rate Commercial Mortgage Pass-Thru
Certificates, Series 1995-1, Class A2A,
6.5913%, Due 8/15/05 (Acquired 2/21/97;
Cost $4,010,000) (b) 4,000,000 3,979,060
Mall of America Capital Company LLC
Mortgage Pass-Thru Certificates,
Series 2000-1, Class C, 6.91%, Due 3/12/05 (b) 6,000,000 6,000,000
Mellon Residential Funding Corporation
Variable Rate Mortgage Pass-Thru Certificates,
Series 1999-TBC3:
Class B-1, 6.5873%, Due 10/20/29 1,543,000 1,544,682
Class B-2, 6.5873%, Due 10/20/29 823,000 819,017
Class B-3, 6.5873%, Due 10/20/29 1,029,000 1,011,476
Merrill Lynch Credit Corporation Floating
Rate Pass-Thru Asset-Backed Mortgage Loans,
Series 1996-C, Class B, 7.0625%,
Due 9/15/21 (b) 4,655,653 4,081,704
Merrill Lynch Credit Corporation Mortgage
Loan Asset-Backed Pass-Thru Floating Rate
Notes, Series 1996-D, Class B, 7.0625%,
Due 5/15/25 (b) 7,298,154 6,245,614
Merrill Lynch Credit Corporation Senior
Subordinated Variable Rate Mortgage
Pass-Thru Certificates, Series 1995-A,
Class A-5, 7.3085%, Due 6/15/20 6,691,109 6,711,607
Merrill Lynch Credit Corporation Subordinated
Variable Rate Mortgage-Backed Certificates,
Series 1995-S1, Class A-1, 6.8125%,
Due 2/17/24 (b) 5,000,000 4,754,700
Merrill Lynch Home Equity Acceptance, Inc.
Subordinated Variable Rate Mortgage-Backed
Certificates, Series 1994-A, Class A-1,
6.8125%, Due 8/17/23 4,034,119 4,013,303
Merrill Lynch Mortgage Investors, Inc. Senior
Subordinated Variable Rate Pass-Thru
Certificates, Series 1994-A, Class M, 6.8125%,
Due 2/15/19 11,000,000 11,228,506
Merrill Lynch Mortgage Investors, Inc. Variable
Rate Commercial Mortgage Pass-Thru
Certificates:
Series 97-SD1, Class D, 6.575%,
Due 4/01/04 (b) 15,500,000 14,778,320
Series 97-SD1, Class E, 6.875%,
Due 4/01/04 (b) 2,500,000 2,345,700
Series 98-H1, Class C, 6.3563%,
Due 4/01/11 (b) 2,000,000 1,945,620
Series 98-H1, Class D, 6.5563%,
Due 4/01/11 (b) 5,813,000 5,465,150
Series 98-H1, Class E, 6.8563%,
Due 4/01/11 (b) 3,437,686 3,177,728
The Money Store Home Equity Trust
Asset-Backed Certificates, Series 1998-A,
Class AF-3, 6.13%, Due 9/15/16 $ 8,337,430 $ 8,299,286
Morgan Stanley Capital I, Inc. Variable Rate
Commercial Mortgage Pass-Thru Certificates,
Series 1995-HF1, Class D, 7.485%,
Due 2/15/05 3,500,000 3,486,158
Morgan Stanley Mortgage Trust Variable
Rate Interest Only Collateralized Mortgage
Obligation, Series 35, Class 35-2, 6761.00%,
Due 4/20/21 1,492 188,037
Mortgage Index Amortizing Trust Asset-Backed
Notes, Series 1997-1, Class A1, 6.682%,
Due 8/25/04 6,732,997 6,533,094
Nomura Depositor Trust Floating Rate
Commercial Mortgage Pass-Thru Certificates,
Series 1998-ST1:
Class A4, 6.785%, Due 1/15/03 (b) 32,000,000 30,880,000
Class A5, 7.135%, Due 1/15/03 (b) 6,300,000 6,033,258
OUC Commercial Mortgage Securities, Inc.
Subordinated Adjustable Rate Mortgage
Securities, Series 1998-1, Class C, 7.0191%,
Due 1/27/28 (b) 8,387,015 8,117,037
Option One Mortgage Loan Trust Variable
Rate Asset-Backed Certificates, Series 2000-1,
Class S, 3.50%, Due 4/25/30 17,170,000 927,523
Option One Mortgage Securities Corporation
Net Interest Margin Trust, Series 1999-2,
9.66%, Due 6/26/29 (b) 11,151,167 11,074,559
Pennant CBO, Ltd./Pennant CBO Corporation
Floating Rate Yankee Bonds, Series 1A,
Class A, 6.5225%, Due 3/14/11 (b) 16,000,000 15,971,200
Perpetual Savings Bank Variable Rate Mortgage
Pass-Thru Certificates, Series 1991-1,
Class B1, 6.6511%, Due 6/25/19
(Acquired 9/17/96; Cost $303,562) (b) 300,417 301,543
Provident CBO I, Ltd./Provident CBO I, Inc.
Senior Secured Floating Rate Bonds,
Series 1A, Class A1, 6.92%, Due 12/09/10 (b) 7,000,000 7,054,670
Prudential Home Mortgage Securities Company
Mortgage Pass-Thru Certificates:
Series 1992-18, Class M, 8.50%, Due 7/25/22 7,685,026 7,780,415
Series 1992-46, Class A-6, 7.00%, Due 1/25/08 7,300,000 7,267,333
Series 1993-63, Class A-14, 6.75%, Due 1/25/24 5,634,904 5,523,977
Prudential Home Mortgage Securities Company
Variable Rate Mortgage Pass-Thru Certificates,
Series 1988-1, Class A, 7.5136%, Due 4/25/18 639,524 627,811
Repeat Offering Securitisation Entity Funding
Number 2, Ltd. Floating Rate Asset-Backed
Certificates, Series 2A:
Class A5A, 6.64%, Due 10/28/04 (b) 10,000,000 9,800,000
Class A6, 7.99%, Due 10/28/04 (b) 15,000,000 14,681,250
Resecuritization Mortgage Trust Variable Rate
Certificates, Series 1998-B, Class A, 6.1275%,
Due 4/26/21 (b) 7,210,205 7,169,684
Residential Accredit Loans, Inc. Mortgage
Pass-Thru Certificates, Series 1997-QS2,
Class A-7, 7.75%, Due 3/25/27 10,400,783 10,375,145
Residential Asset Securitization Trust
Mortgage Pass-Thru Certificates:
Series 1998-A5, Class A-1, 6.75%, Due 6/25/28 9,539,528 9,264,933
Series 1998-A6, Class I-A-7, 6.75%,
Due 7/25/28 13,271,271 12,977,511
Residential Funding Mortgage Securities I,
Inc. Mortgage Pass-Thru Certificates,
Series 1993-MZ1, Class A-2, 7.47%,
Due 3/02/23 5,758,125 5,698,120
</TABLE>
17
<PAGE>
<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) February 29, 2000
- -----------------------------------------------------------------------------------------
STRONG ADVANTAGE FUND (continued)
- -----------------------------------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
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 $ 11,822,730 $ 114,562
Resolution Trust Corporation Mortgage
Pass-Thru Securities, Inc. Commercial
Certificates:
Series 1994-C2, Class E, 8.00%, Due 4/25/25 11,618,982 11,507,614
Series 1995-C1, Class C, 6.90%, Due 2/25/27 16,350,000 16,129,847
Series 1995-C2, Class C, 7.00%, Due 5/25/27 4,530,497 4,503,790
Resolution Trust Corporation Mortgage
Pass-Thru Securities, Inc. Variable Rate
Certificates:
Series 1992-17, Class A2, 6.7637%,
Due 4/25/20 2,005,229 1,997,379
Series 1992-18P, Class B-5, 7.50%,
Due 1/25/21 (b) 80,638 80,562
Series 1993-1P, Class A2, 6.86%,
Due 8/25/19 (b) 3,301,600 3,277,861
Series 1995-1, Class B-5, 7.7531%,
Due 10/25/28 12,116,025 11,999,407
Series 1995-1, Class B-11, 7.60%,
Due 10/25/28 692,562 696,480
Series 1995-1, Class M-11, 6.80%,
Due 10/25/28 2,757,334 2,774,995
Resolution Trust Corporation Mortgage
Pass-Thru Securities, Inc. Variable Rate
Commercial Certificates:
Series 1991-M4, Class A-1, 6.273%,
Due 2/25/20 11,545,657 11,553,104
Series 1992-C1, Class B, 7.875%, Due 8/25/23 225,945 226,170
Series 1992-C8, Class A-2, 7.225%,
Due 12/25/23 1,564,289 1,567,754
Ryland Mortgage Securities Corporation IV
Variable Rate Collateralized Mortgage
Bonds, Series 2, Class 3-A, 12.0164%,
Due 6/25/23 379,901 380,376
Ryland Mortgage Securities Corporation
Variable Rate Mortgage Participation
Securities, Series 1990-C1, Class A, 6.0534%,
Due 10/25/20 (c) 30,636,954 30,503,071
SASCO Floating Rate Commercial Mortgage
Trust Pass-Thru Certificates, Series 1998-C3A,
Class A2, 6.4588%, Due 6/25/15 (b) 7,579,195 7,586,964
Salomon Brothers Mortgage Securities VII, Inc.
Asset-Backed Certificates,
Series 1997-LB2, Class A-4, 7.40%, Due 4/25/27 1,012,164 1,008,050
Salomon Brothers Mortgage Securities VII, Inc.
Floating Rate Commmercial Mortgage
Pass-Thru Certificates, Series 2000-FL1,
Class B, 6.3063%, Due 5/05/01 (b) 10,000,000 9,989,400
Salomon Brothers Mortgage Securities VII, Inc.
Mortgage Pass-Thru Certificates:
Series 1996-LB2, Class A-5, 7.25%,
Due 10/25/26 1,459,045 1,453,435
Series 1997-HUD1, Class A-2, 7.37%,
Due 12/25/30 7,871,000 7,787,292
Salomon Brothers Mortgage Securities VII, Inc.
Variable Rate Mortgage Pass-Thru Certificates,
Series 1992-4, Class A2, 6.9914%, Due 9/25/22 830,501 828,445
Sears Mortgage Securities Corporation Variable
Rate Mortgage Pass-Thru Certificates,
Series 1992-21, Class A-2, 7.6769%,
Due 12/26/22 532,373 531,875
Sears Mortgage Securities Corporation Variable
Rate Pass-Thru Certificates, Series 1991-1,
Class A-1, 5.6454%, Due 7/25/21 13,178,877 12,756,275
Structured Asset Securities Corporation
Floating Rate Mortgage Pass-Thru
Certificates, Series 1998-2, Class A, 6.0738%,
Due 2/25/28 $ 11,602,842 $ 11,615,209
Structured Asset Securities Corporation
Variable Rate Pass-Thru Certificates:
Series 1994-C1, Class A-3, 6.4938%,
Due 8/25/26 996,545 997,128
Series 1995-C4, Class A-2, 6.4288%,
Due 6/25/26 1,598,352 1,598,919
Structured Mortgage Trust Commercial
Mortgage-Backed Securities, Series 1997-2,
Class A, 6.7234%, Due 1/30/06 (Acquired
5/12/98; Cost $14,832,592) (b) 15,000,000 14,109,450
Summit CBO I, Ltd./Summit CBO I Funding
Corporation Second Priority Senior Secured
Floating Rate Bonds, Series 1A, Class B,
7.0338%, Due 5/23/11 (b) 9,580,000 9,425,858
Textron Financial Corporation Receivables
Trust Asset-Backed Notes, Series 1998-A,
Class A1, 5.82%, Due 1/15/02 (b) 5,438,767 5,425,252
Western Federal Savings & Loan Association
Variable Rate Mortgage Pass-Thru Certificates,
Series 1991-4, Class A, 7.846%, Due 7/25/21 2,907,327 2,820,107
- -----------------------------------------------------------------------------------------
Total Non-Agency Mortgage & Asset-Backed
Securities (Cost $868,845,487) 857,518,133
- -----------------------------------------------------------------------------------------
UNITED STATES GOVERNMENT &
AGENCY ISSUES 10.4%
FHLMC Participation Certificates:
5.00%, Due 5/01/06 25,219,809 23,250,545
7.00%, Due 7/15/06 2,409,145 2,407,856
7.50%, Due 8/01/04 14,090,267 14,090,525
8.50%, Due 7/01/21 10,945,154 11,191,303
9.00%, Due 1/01/05 thru 9/15/20 14,075,424 14,550,202
10.00%, Due 3/15/20 11,092,105 11,649,125
10.50%, Due 5/01/20 thru 11/01/20 7,645,111 8,461,947
11.00%, Due 11/01/15 thru 9/01/20 1,621,873 1,748,036
11.75%, Due 5/01/11 thru 6/01/11 692,208 752,088
12.00%, Due 9/01/11 thru 2/01/15 322,511 354,760
12.25%, Due 7/01/15 370,617 406,498
12.50%, Due 2/01/15 117,436 130,309
FNMA Guaranteed Real Estate Mortgage
Investment Conduit Pass-Thru Certificates:
8.00%, Due 4/01/17 thru 3/25/21 27,676,656 27,902,392
8.75%, Due 9/25/20 thru 12/25/20 13,549,703 13,944,005
9.00%, Due 10/01/04 thru 6/01/24 64,458,471 66,819,923
9.50%, Due 12/01/09 thru 3/01/21 9,314,270 9,769,989
9.75%, Due 3/25/20 4,422,371 4,677,391
10.00%, Due 12/01/09 thru 1/01/10 6,476,087 6,815,058
10.50%, Due 8/01/19 5,084,898 5,422,059
13.50%, Due 9/01/14 16,564 18,538
FNMA Guaranteed Real Estate Mortgage
Investment Conduit Variable Rate Pass-Thru
Certificates, 7.049%, Due 12/01/17 2,560,677 2,641,968
GNMA Guaranteed Pass-Thru Certificates:
9.50%, Due 12/15/17 3,232,850 3,405,687
10.00%, Due 10/20/17 4,738,517 5,016,295
13.50%, Due 8/15/14 thru 11/15/14 72,402 83,416
15.00%, Due 5/15/12 thru 9/15/12 27,790 32,821
United States Treasury Notes, 5.50%,
Due 7/31/01 16,950,000 16,727,531
- -----------------------------------------------------------------------------------------
Total United States Government & Agency
Issues (Cost $252,479,700) 252,270,267
- -----------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
STRONG ADVANTAGE FUND (continued)
- -----------------------------------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
PREFERRED STOCKS 3.0%
Newscorp Overseas, Ltd. 6.5308% Series B 1,130,000 $ 20,269,940
Parmalat Capital Finance 7.70% Series B 200,000 4,600,000
TCI Communications Financing I Trust 8.72% 1,680,000 42,000,000
TCI Communications Financing II Trust 10.00% 200,000 5,150,000
- -----------------------------------------------------------------------------------------
Total Preferred Stocks (Cost $83,047,522) 72,019,940
- -----------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 8.4%
Commercial Paper 0.1%
Interest Bearing, Due Upon Demand
Sara Lee Corporation, 5.48% $ 105,700 105,700
Warner Lambert Company, 5.50% 554,400 554,400
Wisconsin Electric Power Company, 5.50% 312,000 312,000
---------------
972,100
CORPORATE BONDS 4.3%
CMS Energy Corporation Notes, Series B,
7.375%, Due 11/15/00 (c) 15,065,000 14,958,958
Deeptech International, Inc. Senior Notes,
12.00%, Due 12/15/00 (c) 8,425,000 8,574,577
Dime Bancorp, Inc. Notes, 6.375%,
Due 1/30/01 (c) 15,000,000 14,782,425
ITT Corporation Notes, 6.25%, Due 11/15/00 29,425,000 28,941,842
Niagara Mohawk Power Corporation Senior
Notes, Series B, 7.00%, Due 10/01/00 4,536,586 4,519,402
Restructured Asset Variable Rate Certificates
Enhanced Returns, Series 1998-C-9-5,
7.3513%, Due 6/15/00 (Acquired 9/14/98;
Cost $20,000,000) (b) (c) 20,000,000 19,930,000
WMX Technologies, Inc. Notes, 6.25%,
Due 10/15/00 12,100,000 11,900,265
---------------
103,607,469
NON-AGENCY MORTGAGE & ASSET-BACKED SECURITIES 0.9%
DLJ Commercial Mortgage Corporation
Pass-Thru Certificates, Series 1998-ST2A,
Class A3, 6.9063%, Due 11/05/00 (b) 20,846,000 20,866,846
FirstPlus Global Issuance Company/FirstPlus
Global Issuance Corporation Interest Only
Asset-Backed Notes, Series 1998-3, Class A
IO, 5.00%, Due 7/10/00 (b) 52,159,000 928,952
Master Financial Asset Securitization Trust
Variable Rate Interest Only Asset-Backed
Notes, Series 1997-1, Class IO, 9.00%,
Due 5/20/00 26,095,000 415,954
---------------
22,211,752
REPURCHASE AGREEMENTS 3.1%
ABN-AMRO Tri-Party (Dated 2/29/00), 5.74%,
Due 3/01/00 (Repurchase proceeds
$71,411,384); Collateralized by: United States
Government & Agency Issues (h) 71,400,000 71,400,000
Firstar Bank Milwaukee, N.A. (Dated 2/29/00),
3.50%, Due 3/01/00 (Repurchase proceeds
$3,300,321); Collateralized by: United States
Government & Agency Issues (h) 3,300,000 3,300,000
---------------
74,700,000
UNITED STATES GOVERNMENT & AGENCY ISSUES 0.0%
FHLMC Participation Certificates, 11.00%,
Due 10/01/00 $ 4,742 $ 4,779
United States Treasury Bills, Due 3/02/00
thru 4/20/00 (c) 830,000 824,907
---------------
829,686
- -----------------------------------------------------------------------------------------
Total Short-Term Investments (Cost $203,232,894) 202,321,007
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
Total Investments In Securities
(Cost $2,446,219,202) 99.5% 2,403,830,060
Other Assets and Liabilities, Net 0.5% 11,102,667
- -----------------------------------------------------------------------------------------
NET ASSETS 100.0% $2,414,932,727
=========================================================================================
FUTURES
- -----------------------------------------------------------------------------------------
Underlying
Expiration Face Amount Unrealized
Date at Value Depreciation
- -----------------------------------------------------------------------------------------
Sold:
1,383 Two-Year U.S. Treasury Notes 6/00 $273,034,455 $25,394
50 Five-Year U.S. Treasury Notes 6/00 4,854,688 24,041
SWAPS
- -----------------------------------------------------------------------------------------
Open Interest Rate Swap contracts at February 29, 2000 consisted of the following:
- -----------------------------------------------------------------------------------------
Notional
Issuer Amount Interest Sold Interest Bought
- -----------------------------------------------------------------------------------------
CORE, Ltd.
(Expires 1/16/06) $14,044,000 3 Month Euro 3 Month USD
LIBOR + 80 bp LIBOR + 78 bp
Mashantucket Western 30,000,000 6.91% 3 Month USD
Pequot Tribe LIBOR + 28 bp
(Expires 9/01/12)
Salomon Brothers, Inc.
(Expires 9/30/03) 4,400,000 10 Year Constant 3 Month USD
Maturity Treasury LIBOR + 30 bp
- 140 bp
</TABLE>
19
<PAGE>
<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) February 29, 2000
- ------------------------------------------------------------------------------------------
STRONG MUNICIPAL ADVANTAGE FUND
- ------------------------------------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
- ------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS 31.8%
ALABAMA 1.6%
Washington County, Alabama Board of Education
Municipal Project Lease and Option Agreement
COP, 5.10%, Due 1/31/03 $ 926,695 $ 901,211
West Jefferson Amusement and Public Park
Authority First Mortgage Revenue - VisionLand
Alabama Project, 6.00%, Due 2/01/20
(Putable at $100 on 2/01/02) 32,045,000 28,840,500
------------
29,741,711
ARKANSAS 0.2%
Little Rock, Arkansas Collateralized IDR -
Lexicon, Inc. Project, 6.48%, Due 7/01/06 3,185,000 3,165,094
CALIFORNIA 0.2%
Stanislaus, California Waste-To-Energy Financing
Agency Solid Waste Facility Revenue
Refunding - Ogden Martin System, Inc. Project,
7.625%, Due 1/01/10 4,065,000 4,153,332
COLORADO 0.9%
Arapahoe County, Colorado SFMR-IDK
Partners I Trust Pass-Thru Certificates, 5.25%,
Due 11/01/19 1,730,317 1,732,635
Denver, Colorado City and County Airport
Revenue, 8.25%, Due 11/15/12 3,500,000 3,645,005
Metropolitan Football Stadium District of
Colorado Sales Tax Revenue, Zero %,
Due 1/01/03 12,500,000 10,828,125
------------
16,205,765
CONNECTICUT 0.3%
Connecticut HFA Housing Mortgage Finance
Program:
4.60%, Due 11/15/18 (c) 5,000,000 4,900,000
7.30%, Due 11/15/03 135,000 138,375
Norwich, Connecticut Tax-Exempt Equipment
Lease, 6.35%, Due 8/01/01 733,910 736,662
------------
5,775,037
FLORIDA 0.3%
Capital Projects Finance Authority Solid Waste
Disposal Revenue Capital Projects Loan
Program - Peerless Dade, Inc. Project, 7.50%,
Due 11/01/18 5,000,000 4,625,000
HAWAII 0.5%
Hawaii Department of Budget and Finance
Special Purpose Revenue - Citizens Utilities
Company Project, 6.66%, Due 11/01/21 8,500,000 8,850,625
IDAHO 0.2%
Boise, Idaho Housing Authority Revenue-
Hobbler Place Project, 5.25%, Due 2/01/02 4,080,000 4,059,600
ILLINOIS 4.4%
Alton, Illinois Hospital Facilities Revenue
Refunding - St. Anthony's Health Center
Project, 5.00%, Due 9/01/01 850,000 837,250
Buffalo Grove, Illinois Park District Installment
Contract Certificates, 5.40%, Due 12/30/04 6,645,000 6,645,000
Chicago, Illinois O'Hare International Airport
Special Facilities Revenue - American Airlines,
Inc. Project, 7.875%, Due 11/01/25 28,280,000 29,093,898
Chicago, Illinois O'Hare International Airport
Special Facilities Revenue - United Airlines,
Inc. Project:
8.50%, Due 5/01/18 17,100,000 17,499,969
8.85%, Due 5/01/18 14,185,000 14,847,581
Illinois DFA PCR Refunding - Commonwealth
Edison Company Project, 7.25%, Due 6/01/11 7,225,000 7,495,938
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 $ 2,680,000 $ 2,780,500
------------
79,200,136
INDIANA 0.3%
East Chicago, Indiana School City COP:
5.10%, Due 7/15/03 2,675,000 2,621,500
5.50%, Due 7/15/02 1,740,000 1,735,650
Huntington, Indiana EDR Refunding - Quanex
Corporation Project, 6.50%, Due 8/01/10 1,665,000 1,640,025
------------
5,997,175
IOWA 0.0%
Cedar Rapids, Iowa First Mortgage Revenue -
Cottage Grove Place Project, 5.30%,
Due 7/01/05 750,000 703,125
KANSAS 0.4%
Kansas City, Kansas Board of Public Utilities
Master Municipal Lease and Option
Agreement, 4.47%, Due 5/01/03 3,058,273 2,955,056
Kansas City, Kansas Residual Revenue Capital
Appreciation, Zero %, Due 5/01/12 1,805,000 712,975
Sedgwick and Shawnee Counties, Kansas SFMR
Mortgage-Backed Securities Program, 4.70%,
Due 12/01/08 3,325,000 3,275,125
------------
6,943,156
KENTUCKY 0.4%
Kentucky EDFA Hospital System Refunding and
Improvement Revenue-Appalachian Regional
Healthcare, Inc. Project:
4.85%, Due 10/01/01 2,195,000 2,148,356
5.00%, Due 10/01/02 2,300,000 2,225,250
5.10%, Due 10/01/03 2,165,000 2,064,869
------------
6,438,475
LOUISIANA 5.7%
East Baton Rouge, Louisiana Mortgage Finance
Authority SFMR Refunding-GNMA and
FNMA Mortgage-Backed Securities Program,
4.60%, Due 10/01/16 1,915,000 1,898,244
Louisiana Health Education Authority
Revenue Refunding - Lambeth House Project,
5.25%, Due 1/01/05 14,875,000 14,019,688
Louisiana Public Facilities Authority Hospital
Revenue Refunding - Pendleton Memorial
Methodist Hospital Project:
6.75%, Due 6/01/10 (Pre-Refunding at $102
on 6/01/02) 795,000 782,081
6.75%, Due 6/01/22 2,615,000 2,409,069
Louisiana Public Facilities Authority MFHR -
Whitten Foundation Project:
6.75%, Due 4/01/01 26,700,000 25,899,000
7.00%, Due 6/01/01 18,150,000 17,787,000
New Orleans, Louisiana Regional Transit
Authority Lease-Purchase Agreements:
Lease M98147, 5.50%, Due 5/01/08 30,567,546 29,268,425
Lease M98159, 5.50%, Due 5/01/08 2,875,302 2,753,101
Ouachita Parish, Louisiana IDB, Inc. Revenue
Refunding - Physicians and Surgeons Medical
Complex Project, 4.80%, Due 8/01/02 3,750,000 3,721,875
West Feliciana Parish, Louisiana PCR - Gulf States
Utilities Company Project, 9.00%, Due 5/01/15 3,250,000 3,363,165
------------
101,901,648
MAINE 0.3%
Maine Finance Authority Solid Waste Disposal
Revenue - Boise Cascade Corporation Project,
7.90%, Due 6/01/15 5,000,000 5,087,500
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
STRONG MUNICIPAL ADVANTAGE FUND (continued)
- ------------------------------------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
- ------------------------------------------------------------------------------------------
<S> <C> <C>
MASSACHUSETTS 2.9%
Clipper Caravel Tax-Exempt Trust Certificates
Revenue, 3.75%, Due 10/08/01(c) $ 20,793,685 $ 20,663,725
Commonwealth of Massachusetts Department
of Revenue Tax-Exempt Master Equipment
Lease, 5.62%, Due 10/01/01 1,098,918 1,097,545
Massachusetts Health and EFA Competitive
Lease Program - Whitehead Institute for
Biomedical Research Project:
4.595%, Due 10/15/03 25,370,229 25,465,367
4.698%, Due 5/07/03 1,927,957 1,935,187
Northborough, Massachusetts Industrial Finance
Authority Revenue - Newcorr Packaging, Ltd.
Project, 4.80%, Due 9/01/02 2,630,000 2,606,988
------------
51,768,812
MICHIGAN 0.3%
Detroit, Michigan EDC Resource Recovery
Revenue, 7.00%, Due 5/01/01 2,390,000 2,425,850
Koch Financial Corporation Special Purpose
Lease Tax-Exempt Private Municipal Trust
Certificates, 4.70%, Due 10/06/03 3,107,000 3,068,163
------------
5,494,013
MINNESOTA 0.7%
Plymouth, Minnesota Revenue Refunding -
Carlson Center Project, 7.00%, Due 4/01/12 3,505,000 3,510,783
Sartell, Minnesota PCR Refunding - Champion
International Corporation Project, 6.95%,
Due 10/01/12 9,380,000 9,731,750
------------
13,242,533
MISSISSIPPI 0.2%
Jones County, Mississippi Hospital Revenue
Refunding - South Central Regional Medical
Center Project, 5.00%, Due 12/01/03 3,380,000 3,270,150
MISSOURI 0.0%
Springfield, Missouri Land Clearance
Redevelopment Authority Industrial Revenue -
University Plaza Project, 5.90%, Due 10/01/01 580,000 580,000
NEBRASKA 1.3%
Energy America Gas Supply Revenue -
Metropolitan Utilities District Project, 5.30%,
Due 4/01/05 15,415,265 15,184,036
Energy America Gas Supply Revenue - Nebraska
Public Gas Agency Project, 5.10%,
Due 10/15/05 5,415,633 5,273,472
Omaha Tribe of Nebraska Public Improvements
Authority GO, 7.50%, Due 6/01/09 2,590,000 2,534,962
------------
22,992,470
NEVADA 0.1%
Reno-Sparks, Nevada Convention and Visitors
Authority Limited Obligation Refunding,
6.25%, Due 11/01/01 1,540,000 1,553,475
NEW YORK 0.4%
New York Mortgage Agency Homeowner
Mortgage Revenue, 4.75%, Due 10/01/21 7,200,000 7,092,000
OHIO 1.4%
Ohio Department of Transportation COP -
Rickenbacker Port Project, 6.125%,
Due 4/15/15 375,000 386,250
Ohio HFA Residential Mortgage Revenue -
Mortgage-Backed Securities Program, 4.65%,
Due 9/01/20 21,785,000 21,267,606
Youngstown, Ohio City School District Energy
Conservation Measures, 6.80%, Due 3/15/05 3,525,000 3,595,500
------------
25,249,356
OKLAHOMA 0.7%
Tulsa County, Oklahoma GO, 3.60%,
Due 11/01/01 $ 1,925,000 $ 1,891,313
Tulsa, Oklahoma Trustees Municipal Airportv
Trust - American Airlines, Inc. Project, 7.375%,
Due 12/01/20 11,000,000 11,123,750
------------
13,015,063
OREGON 0.4%
Medford, Oregon Municipal Lease-Purchase
Agreement, 5.00%, Due 5/01/03 1,347,305 1,350,673
Multnomah County, Oregon Educational
Facilities Revenue Refunding - University of
Portland Project, 4.75%, Due 4/01/01 2,005,000 2,002,835
Washington County, Oregon Operations Yard
Facilities Deferred Interest Obligations,
Zero %, Due 6/01/03 4,000,000 3,405,000
------------
6,758,508
PENNSYLVANIA 1.9%
Lehigh County, Pennsylvania General Purpose
Authority Revenue - KidsPeace Obligated
Group Project:
5.50%, Due 11/01/01 2,125,000 2,098,437
5.50%, Due 11/01/02 2,240,000 2,195,200
5.50%, Due 11/01/03 2,360,000 2,298,050
5.50%, Due 11/01/04 2,500,000 2,415,625
Montgomery County, Pennsylvania IDA First
Mortgage Revenue Refunding - The
Meadowood Corporation Project, 5.15%,
Due 12/01/03 1,259,000 1,207,066
Philadelphia, Pennsylvania Airport Revenue
Refunding - Philadelphia Airport System
Project, 5.50%, Due 6/15/01 2,000,000 2,020,000
Philadelphia, Pennsylvania Municipal Authority
Equipment Revenue, 5.297%, Due 10/01/04 13,585,754 13,670,665
Pittsburgh, Pennsylvania Urban Redevelopment
Authority Mortgage Revenue, 5.15%,
Due 4/01/21 3,980,000 3,950,150
Scranton, Lackawanna County, Pennsylvania
Health and Welfare Authority Hospital
Revenue - Moses Taylor Hospital Project:
5.25%, Due 7/01/02 3,650,000 3,517,688
5.45%, Due 7/01/03 1,350,000 1,287,562
------------
34,660,443
PUERTO RICO 0.3%
Commonwealth of Puerto Rico Tax-Exempt
Lease Certificates, 5.35%, Due 7/15/04 4,603,202 4,683,758
SOUTH CAROLINA 0.1%
Charleston County, South Carolina Industrial
Revenue Refunding - Coburg Dairy, Inc.
Project, 6.875%, Due 10/01/06 1,400,000 1,402,198
TENNESSEE 0.4%
Tennessee Housing Development Agency -
Homeownership Program, Zero %,
Due 7/01/12 13,010,000 6,748,937
TEXAS 2.6%
Alliance Airport Authority, Inc. Special
Facilities Revenue - American Airlines, Inc.
Project, 7.50%, Due 12/01/29 10,450,000 10,672,063
Dallas-Fort Worth, Texas International Airport
Facilities Improvement Corporation
Revenue - American Airlines, Inc. Project,
7.50%, Due 11/01/25 16,640,000 16,972,800
Falcons Lair, Texas Utility and Reclamation
District COP, 6.25%, Due 10/15/02 3,000,000 2,910,000
</TABLE>
21
<PAGE>
<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) February 29, 2000
- ------------------------------------------------------------------------------------------
STRONG MUNICIPAL ADVANTAGE FUND (continued)
- ------------------------------------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Houston, Texas Airport System Subordinate
Lien Revenue Refunding, 5.25%,
Due 7/01/01 $ 2,350,000 $ 2,367,625
Jefferson County, Texas Health Facilities
Development Corporation Hospital Revenue -
Baptist Healthcare System Project, 8.875%,
Due 6/01/21 2,955,000 2,955,000
Lubbock, Texas HFC SFMR Refunding - GNMA
Mortgage-Backed Securities Program, 7.00%,
Due 12/01/20 5,280,000 5,504,400
Texas Department of Housing and Community
Affairs Residential Mortgage Revenue, 4.80%,
Due 7/01/18 4,545,000 4,437,056
------------
45,818,944
UTAH 0.6%
Eagle Mountain, Utah Gas and Electric Revenue
BAN, 4.875%, Due 9/01/01 2,830,000 2,854,763
Eagle Mountain, Utah Special Improvement
District Number 98-3 Special Assessment,
5.50%, Due 12/15/08 4,700,000 4,459,125
Salt Lake City, Utah Redevelopment Agency
Central Business District Neighborhood
Redevelopment Tax Increment Revenue
Refunding, 4.75%, Due 10/01/02 4,200,000 4,184,250
------------
11,498,138
VIRGINIA 0.1%
Arlington County, Virginia COP, 4.458%,
Due 6/01/01 1,919,748 1,900,550
WASHINGTON 0.5%
Grant County, Washington Public Utility District
Number 2 Priest Rapids Hydroelectic
Development Second Series Revenue Refunding:
Series A, 5.00%, Due 1/01/04 2,500,000 2,512,500
Series B, 5.00%, Due 1/01/04 1,385,000 1,385,000
Grant County, Washington Public Utility District
Number 2 Wanapum Hydroelectric
Development Second Series Revenue Refunding:
Series A, 5.00%, Due 1/01/04 1,270,000 1,276,350
Series B, 5.00%, Due 1/01/04 1,105,000 1,110,525
Skagit and Whatcom Counties, Washington Public
Hospital District Number 304 Revenue
Refunding - Affiliated Health Services Project,
4.90%, Due 12/01/02 2,050,000 2,001,312
Skagit County, Washington Public Hospital
District Number 1 Revenue Refunding -
Affiliated Health Services Project, 4.90%,
Due 12/01/02 1,545,000 1,508,306
------------
9,793,993
WEST VIRGINIA 0.3%
Kanawha County, West Virginia County
Commission IDR - Union Carbide Chemicals
and Plastics Company, Inc. Project, 8.00%,
Due 8/01/20 1,930,000 1,979,620
West Virginia Housing Development Fund
Housing Finance Revenue, 7.20%,
Due 11/01/20 2,745,000 2,827,350
------------
4,806,970
WYOMING 0.5%
Wyoming Community HDA Revenue, 3.80%,
Due 6/01/01 8,200,000 8,087,250
MULTIPLE STATES 0.4%
Municipal Tax-Exempt Trust Certificates, 4.00%,
Due 3/06/01 6,963,512 6,949,864
- ------------------------------------------------------------------------------------------
Total Municipal Bonds (Cost $582,421,836) 570,214,804
- ------------------------------------------------------------------------------------------
VARIABLE RATE PUT BONDS 12.9%
CALIFORNIA 0.2%
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 $ 3,002,040
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 3,013,560
FLORIDA 3.6%
Florida Housing Finance Agency MFHR -
Cypress Lake Apartment Project, 5.75%,
Due 12/01/07 (Mandatory Put at $100 on
12/01/02) 200,000 201,500
Municipal Mortgage & Equity LLC MFHR
Certificates, 4.95%, Due 8/15/23 (Mandatory
Put at $100 on 8/15/05) 67,000,000 65,241,250
------------
65,442,750
GEORGIA 0.2%
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) 2,870,000 2,871,062
ILLINOIS 4.2%
Chicago, Illinois MFHR - Chicago Beach
Apartments Project, 5.50%, Due 2/01/17
(Mandatory Put at $100 on 2/01/02) 2,810,000 2,813,906
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 3,465,000
Lakemoor, Illinois MFHR - Lakemoor
Apartments Project, 5.35%, Due 12/01/20
(Mandatory Put at $100 on 9/04/01) 50,000,000 50,000,000
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 19,459,687
------------
75,738,593
MARYLAND 0.1%
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) 1,850,000 1,771,375
MICHIGAN 1.1%
Michigan Strategic Fund Limited Obligation
Revenue Refunding - Detroit Edison Company
Project, 4.70%, Due 9/01/29 (Mandatory Put at
$100 on 9/01/01) 20,000,000 19,950,000
NEW JERSEY 0.7%
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) 12,500,000 11,953,125
NEW YORK 0.3%
Amherst, New York Industrial Development
Agency Revenue - Asbury Pointe, Inc. Project,
5.25%, Due 2/01/35 (Mandatory Put at $100
on 2/01/04) 5,000,000 4,756,250
</TABLE>
22
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
STRONG MUNICIPAL ADVANTAGE FUND (continued)
- ------------------------------------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
- ------------------------------------------------------------------------------------------
<S> <C> <C>
OHIO 1.0%
Ohio Water Development Authority Facilities
PCR Refunding - Ohio Edison Company
Project, 4.25%, Due 6/01/33 (Mandatory Put
at $100 on 6/01/01) $ 18,000,000 $ 17,730,000
PENNSYLVANIA 0.5%
Chester County, Pennsylvania Health and
Education Facilities Authority Revenue -
Barclay Friends Project, 4.60%, Due 8/01/25
(Mandatory Put at $100 on 8/01/02) 2,430,000 2,402,662
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) 4,000,000 3,885,000
Philadelphia, Pennsylvania IDA Health Care
Facilities Revenue EXTRAS - Pauls Run Project,
5.125%, Due 5/15/28 (Putable at $100 and Rate Reset
Effective 5/15/03) 2,000,000 1,925,000
------------
8,212,662
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 2,928,750
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 2,382,625
TEXAS 0.4%
Abilene, Texas Health Facilities Development
Corporation Retirement Facilities Revenue
EXTRAS - Sears Methodist Retirement System
Obligated Group Project, 5.25%, Due 11/15/28
(Putable at $100 and Rate Reset Effective
11/15/03) 6,070,000 5,789,263
North Central Texas Health Facilities
Development Corporation Health Facility
Development Revenue EXTRAS - C.C. Young
Memorial Home Project, 5.00%, Due 2/15/28
(Putable at $100 and Rate Reset Effective
2/15/03) 1,575,000 1,523,812
------------
7,313,075
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 4,106,563
- ------------------------------------------------------------------------------------------
Total Variable Rate Put Bonds (Cost $235,596,625) 231,172,430
- ------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (A) 52.9%
MUNICIPAL BONDS 8.1%
CALIFORNIA 0.1%
Kern County, California IDA IDR - Hancor, Inc.
Project, 7.80%, Due 9/01/00 500,000 509,705
Valley Health System Hospital Revenue -
Refunding and Improvement Project,
5.50%, Due 5/15/00 740,000 738,831
------------
1,248,536
COLORADO 0.1%
Central City, Gilpin County, Colorado Excise Tax
Refunding, 5.40%, Due 12/01/00 $ 1,100,000 $ 1,105,885
GUAM 0.1%
Guam Airport Authority General Revenue,
6.00%, Due 10/01/00 1,900,000 1,913,300
ILLINOIS 0.4%
Alton, Illinois Hospital Facilities Revenue
Refunding - St. Anthony's Health Center
Project, 5.15%, Due 9/01/00 1,355,000 1,356,626
Eureka, Illinois Educational Facilities Revenue -
Eureka College Project:
5.25%, Due 1/01/01 660,000 654,588
5.25%, Due 1/01/19 (Putable at $100 on
1/01/01) 3,330,000 3,302,694
Romeoville, Will County, Illinois COP, 7.30%,
Due 12/01/00 2,000,000 2,045,080
------------
7,358,988
KENTUCKY 0.1%
Kentucky EDFA Hospital System Refunding and
Improvement Revenue - Appalachian Regional
Healthcare, Inc. Project, 4.70%, 10/01/00 2,085,000 2,069,029
LOUISIANA 0.6%
Louisiana Public Facilities Authority MFHR -
Whitten Foundation Project, 7.00%,
Due 12/01/00 11,665,000 11,198,400
MASSACHUSETTS 0.4%
Commonwealth of Massachusetts Department
of Revenue Tax-Exempt Master Equipment
Lease, 5.085%, Due 10/01/00 414,874 414,123
Massachusetts Health & EFA Revenue -
Eye & Ear Infirmary Project, 4.00%,
Due 7/01/00 2,000,000 1,991,261
Massachusetts Housing Finance Agency
Construction Loan Notes, 4.80%, Due 08/01/00 4,000,000 4,005,360
Massachusetts Industrial Finance Agency
Industrial Revenue - John T. Spinelli Project,
7.00%, Due 11/01/00 810,797 810,797
------------
7,221,541
MINNESOTA 0.4%
Monticello, Minnesota Housing and
Redevelopment Authority Revenue -
Temporary Public Project, 4.50%, Due 2/01/01 6,500,000 6,500,325
NEW JERSEY 1.8%
East Orange, New Jersey BAN, 5.65%,
Due 6/30/00 23,830,000 23,859,080
East Orange, New Jersey TAN, 5.99%,
Due 8/15/00 7,500,000 7,563,900
South Amboy, New Jersey Housing Authority
Housing Revenue - Shore Gate Village
Grand Project, 6.00%, Due 8/01/00
(Defaulted Effective 12/21/99) 2,761,443 1,518,794
------------
32,941,774
NEW YORK 2.2%
Nassau County, New York BAN, 4.25%,
Due 5/16/00 10,000,000 9,999,700
Nassau County, New York RAN, 3.75%,
Due 3/15/00 20,000,000 19,998,200
Niagara Falls, New York City School District
RAN, 4.75%, Due 12/08/00 9,500,000 9,531,825
------------
39,529,725
</TABLE>
23
<PAGE>
<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) February 29, 2000
- ------------------------------------------------------------------------------------------
STRONG MUNICIPAL ADVANTAGE FUND (continued)
- ------------------------------------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
- ------------------------------------------------------------------------------------------
<S> <C> <C>
OHIO 1.7%
American Municipal Power-Ohio, Inc. BAN,
5.25%, Due 1/19/01 $ 30,000,000 $ 29,903,400
PENNSYLVANIA 0.1%
Philadelphia, Pennsylvania Hospitals and Higher
EFA Revenue - Northwestern Corporation
Project, 8.375%, Due 6/01/04 (Pre-Refunding
at $102 on 6/01/00) 1,280,000 1,318,157
UTAH 0.0%
Salt Lake City, Utah IDR Refunding - JTM
Foothill Village Project, 7.125%, Due 12/01/00 830,000 842,035
WISCONSIN 0.1%
Lake Como Sanitary District Number 1 BAN,
4.50%, Due 6/01/00 2,350,000 2,351,433
------------
Total Municipal Bonds 145,502,528
TAXABLE MUNICIPAL BONDS 0.0%
ARIZONA 0.0%
Pima County, Arizona IDA MFHR - Casa Loma
Apartments and Old Farm Project, 9.00%,
Due 1/01/01 50,000 49,261
VARIABLE RATE PUT BONDS 8.6%
ARIZONA 1.2%
Pima County, Arizona IDA MFHR - Casa Loma
Apartments Project, 5.50%, Due 1/01/34
(Mandatory Put at $100 on 1/01/01) 20,845,000 20,652,809
CALIFORNIA 4.4%
California Statewide Communities Development
Authority MFHR - Discovery Commons
Project, 5.375%, Due 1/25/31 (Mandatory
Put at $100 on 6/15/00) 6,755,000 6,755,540
California Statewide Communities Development
Authority MFHR - Lancaster Manor
Apartments Project, 5.375%, Due 12/25/30
(Mandatory Put at $100 on 6/15/00) 9,650,000 9,666,694
California Statewide Communities Development
Authority MFHR - Ocotillo Project, 5.50%,
Due 1/25/31 (Mandatory Put at $100
on 6/15/00) 6,150,000 6,154,059
California Statewide Communities Development
Authority MFHR - Van Nuys Pierce Park
Project, 5.50%, Due 1/25/31 (Mandatory
Put at $100 on 6/15/00) 13,595,000 13,604,381
San Bernardino County, California MFHR
Refunding - Casa Del Rio Apartments Project,
5.50%, Due 8/25/29 (Mandatory Put at $100
on 9/25/00):
Phases I and IV 13,010,000 12,970,580
Phases II and III 10,180,000 10,149,155
San Bernardino County, California MFHR
Refunding - Nova Project, 5.50%, Due 8/25/29
(Mandatory Put at $100 on 6/15/00) 14,486,461 14,489,648
San Bernardino County, California MFHR
Refunding - VLG Green Project, 5.50%,
Due 1/25/31 (Mandatory Put at
$100 on 6/15/00) 5,294,000 5,295,165
------------
79,085,222
FLORIDA 1.0%
Escambia County, Florida Housing Corporation
Housing Revenue - Royal Arms Project, 7.00%,
Due 7/01/17 (Mandatory Put at $100 on
3/31/00) 9,030,000 8,307,600
Escambia County, Florida Housing Corporation
Housing Revenue - Wellington Arms Project,
7.375%, Due 9/01/16 (Mandatory Put at $100
on 3/31/00) $ 10,650,000 $ 10,011,000
-------------
18,318,600
INDIANA 1.0%
Anderson, Indiana MFHR - Cross Lakes
Apartments Project, 5.625%, Due 7/01/33
(Mandatory Put at $100 on 7/01/00) 8,430,000 8,405,131
Indianapolis, Indiana MFHR - Covered Bridge
Project, 5.50%, Due 4/01/30 (Mandatory
Put at $100 on 4/01/00) 9,780,000 9,780,000
-------------
18,185,131
MASSACHUSETTS 0.3%
Massachusetts Health & EFA Revenue -
Hebrew College Project, 4.85%, Due 7/01/31
(Putable at $100 and Rate Reset Effective
3/15/00) 5,000,000 5,001,400
MISSISSIPPI 0.0%
Moss Point, Mississippi Redevelopment
Authority Urban Development
Revenue - Jackson County Motel Project,
5.50%, Due 8/01/05 (Putable at $100 and
Rate Reset Effective 8/01/00) 475,000 476,514
OHIO 0.1%
Wood County, Ohio EDR - Hammill
Manufacturing Company Project, 4.55%,
Due 6/01/14 (Putable at $100 and Rate Reset
Effective 6/01/00) 1,015,000 1,014,361
TEXAS 0.6%
Ivy Walk Apartments Trust Pass-Thru
Certificates, 5.50%, Due 3/01/07 (Mandatory
Put at $100 on 3/01/00) 6,650,000 6,650,133
Texarkana, Texas HFC MFHR - Tanglewood
Terrace Apartments, 5.50%, Due 6/01/29
(Mandatory Put at $100 on 6/01/00) 4,215,000 4,224,905
-------------
10,875,038
-------------
Total Variable Rate Put Bonds 153,609,075
ANNUAL PUT BONDS 6.0% (d)
CALIFORNIA 0.1%
Huntington Park, California Redevelopment
Agency IDR - Huntington Park Project,
4.90%, Due 8/01/00 (e) 1,140,000 1,140,000
MISSISSIPPI 0.2%
Warren County, Mississippi Solid Waste
Disposal Revenue - International Paper
Company Project, 3.85%, Due 3/01/00 (e) 3,700,000 3,699,963
OHIO 0.1%
Sharonville, Ohio IDR - Ralston Purina
Company Project, 4.10%, Due 12/01/00 (e) 1,000,000 1,000,000
SOUTH DAKOTA 0.4%
Sioux Falls, South Dakota EDR Refunding - City
Centre Hotel Corporation Project, 7.00%,
Due 12/01/00 (e) 7,662,098 7,662,098
</TABLE>
24
<PAGE>
<TABLE>
<CAPTION>
STRONG MUNICIPAL ADVANTAGE FUND (CONTINUED)
Shares or
Principal Value
Amount (Note 2)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
TEXAS 5.2%
Brazos River Authority Collateralized PCR
Refunding - Texas Utilities Electric Company
Project, 4.15%, Due 6/19/00 (e) $45,000,000 $ 44,955,000
Brazos River Authority PCR Refunding - Texas
Utilities Electric Company Project, 3.70%,
Due 4/01/00 (e) 45,000,000 44,964,450
Tarrant County, Texas HFC MFHR - Windrush
Project, 6.00%, Due 10/01/00 (e) 3,780,000 3,812,243
--------------
93,731,693
--------------
Total Annual Put Bonds 107,233,754
SEMI-ANNUAL VARIABLE RATE PUT BONDS 0.5% (d)
KENTUCKY 0.5%
Morgantown, Kentucky IDR - Flex Sumitomo
Electric Wiring System Project, 4.75%,
Due 4/01/00 10,000,000 9,998,800
QUARTERLY VARIABLE RATE PUT BONDS 1.4% (d)
OKLAHOMA 0.6%
Oklahoma Industries Authority Hospital
Revenue - Deaconess Health Care Corporation
Project, 5.50%, Due 4/01/00 10,000,000 10,000,000
WASHINGTON 0.8%
Washington Housing Finance Commission
SFMR Refunding:
Series S-5A, 5.00%, Due 3/01/00 5,615,000 5,615,000
Series S-6A, 5.00%, Due 3/01/00 8,875,000 8,875,000
--------------
14,490,000
--------------
Total Quarterly Variable Rate Put Bonds 24,490,000
MONTHLY VARIABLE RATE PUT BONDS 1.9% (d)
ARIZONA 0.2%
USBI Trust Pass-Thru Certificates, 4.875%,
Due 4/01/00 3,222,555 3,222,555
LOUISIANA 0.6%
Calcasieu Parish, Louisiana Memorial Hospital
Service District Hospital Revenue - Lake Charles
Memorial Hospital Project, 4.85%,
Due 4/01/00 10,905,000 10,905,000
MASSACHUSETTS 0.6%
Massachusetts Industrial Finance Agency
Industrial Revenue - New England Milling
Company Project, 5.00%, Due 4/01/00 10,000,000 10,000,000
MISSOURI 0.2%
Desloge, Missouri IDA IDR Refunding - National
Healthcorp Project, 5.00%, Due 4/01/00 1,850,000 1,850,000
Dunklin County, Missouri IDA IDR Refunding -
National Healthcorp Project, 5.00%,
Due 4/01/00 2,355,000 2,355,000
--------------
4,205,000
PENNSYLVANIA 0.1%
Elk County, Pennsylvania IDA Flexible Mode IDR
Refunding - Stackpole Corporation Project,
4.30%, Due 4/01/00 2,750,000 2,750,000
TENNESSEE 0.2%
Knox County, Tennessee IDB IDR - Spartan Food
Systems, Inc. Project, 7.50%, Due 4/01/00 1,500,000 1,503,750
Maryville, Tennessee IDB IDR - Spartan Food
Systems, Inc. Project, 7.50%, Due 4/01/00 1,500,000 1,502,985
--------------
3,006,735
--------------
Total Monthly Variable Rate Put Bonds 34,089,290
WEEKLY VARIABLE RATE PUT BONDS 17.8% (d)
ALABAMA 0.4%
Florence, Alabama IDB IDR - Nichols Wire, Inc.
Project, 4.46%, Due 3/08/00 $ 2,570,000 $ 2,570,000
Grove Hill, Alabama IDB IDR - Hamilton Woods
Veneer Project, 4.65%, Due 3/08/00 4,900,000 4,900,000
--------------
7,470,000
ARKANSAS 0.1%
Searcy, Arkansas IDR - Yarnell Ice Cream
Company Project, 4.35%, Due 3/08/00 2,600,000 2,600,000
CALIFORNIA 1.0%
California Statewide Communities Development
Authority MFHR Refunding - Poinsettia
Apartments Project, 5.05%, Due 3/08/00 5,000,000 5,000,000
Orange County, California Apartment
Development Revenue - Park Place Apartments
Project, 5.40%, Due 3/08/00 7,700,000 7,700,000
Pasadena, California Community Development
Commission COP:
Kings Plaza Project, 5.15%, Due 3/08/00 1,170,000 1,170,000
Lake/Washington Neighborhood Shopping
Center Project, 5.15%, Due 3/08/00 3,415,000 3,415,000
--------------
17,285,000
COLORADO 1.7%
Arapahoe County, Colorado IDR - Denver
JetCenter, Inc. Project, 5.25%, Due 3/08/00 1,600,000 1,600,000
Denver, Colorado City and County MFHR
Refunding - The Seasons Apartment Project,
5.51%, Due 3/08/00 28,400,000 28,400,000
--------------
30,000,000
GEORGIA 2.5%
Floyd County, Georgia Development Authority
PCR Refunding - Inland-Rome Project, 4.50%,
Due 3/08/00 4,735,000 4,735,000
Georgia Municipal Gas Authority Gas Revenue -
Gas Portfolio II Project, 5.15%, Due 3/08/00 28,400,000 28,398,012
Jefferson, Georgia Development Authority IDR -
Sumitomo Plastics America, Inc. Project,
4.95%, Due 3/08/00 5,000,000 5,000,000
Rockdale County, Georgia Development
Authority IDR - Takabashi Works UAA, Inc.
Project, 5.35%, Due 3/08/00 6,065,000 6,065,000
--------------
44,198,012
HAWAII 1.0%
Hawaii HFA HDA Corporation Revenue - Rental
Housing System Project, 4.65%, Due 3/08/00 18,800,000 18,800,000
ILLINOIS 2.6%
Illinois DFA IDR - Miyano Machy USA, Inc.
Project, 5.85%, Due 3/08/00 7,250,000 7,250,000
Illinois DFA MFHR Refunding -
Cobbler Square Project, 5.40%, Due 3/08/00 7,400,000 7,400,000
Illinois DFA MFHR Refunding -
Orleans-Illinois Project, 4.65%, Due 3/08/00 29,020,000 29,020,000
Salem, Illinois IDR-Americana Building Products
Project, 5.00%, Due 3/08/00 2,360,000 2,360,000
--------------
46,030,000
KANSAS 0.8%
Hays, Kansas Manufacturing Facilities
Development Revenue - Yuasa Exide Battery
Corporation Project, 5.90%, Due 3/08/00 9,500,000 9,500,000
Kansas City, Kansas Private Activity Revenue
Refunding - Inland Container Corporation
Project, 4.50%, Due 3/08/00 5,200,000 5,200,000
--------------
14,700,000
</TABLE>
25
<PAGE>
<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) February 29, 2000
- -----------------------------------------------------------------------------------------
STRONG MUNICIPAL ADVANTAGE FUND (CONTINUED)
- -----------------------------------------------------------------------------------------
Shares or
Principal Value
Amount (Note 2)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
KENTUCKY 0.4%
Hopkinsville, Kentucky IDR - Douglas Autotech
Corporation Project, 5.85%, Due 3/08/00 $ 6,900,000 $ 6,900,000
LOUISIANA 0.1%
Louisiana Local Government Environmental
Facilities & Community Development
Authority Revenue - Cospolich, Inc. Project,
4.60%, Due 3/08/00 2,100,000 2,100,000
MINNESOTA 1.0%
Delano, Minnesota IDR - Solar Plastics, Inc.
Project, 4.60%, Due 3/08/00 1,900,000 1,900,000
Edina, Minnesota MFMR Refunding - Vernon
Terrace Project, 4.60%, Due 3/08/00 6,225,000 6,225,000
North Suburban Hospital District CDR
Refunding - Excel Realty Partners Project,
4.65%, Due 3/08/00 5,500,000 5,500,000
Rochester, Minnesota IDR Refunding - Seneca
Foods Corporation Project, 4.15%,
Due 3/08/00 4,675,000 4,675,000
--------------
18,300,000
MISSOURI 1.4%
Jefferson County, Missouri IDA IDR Refunding -
Festus Manor Nursing Home Project, 4.73%,
Due 3/08/00 1,475,000 1,475,000
Missouri Development Finance Board
Infrastructure Facilities Revenue - Kansas City,
Missouri-Midtown Redevelopment Project,
5.85%, Due 3/08/00 17,800,000 17,800,000
St. Louis County, Missouri IDA Revenue - Allied
Ring Project, 5.30%, Due 3/08/00 3,375,000 3,375,000
St. Louis, Missouri Port Authority IDR
Refunding - Italgrani USA, Inc. Project, 5.90%,
Due 3/08/00 2,600,000 2,600,000
--------------
25,250,000
NEW YORK 0.6%
Ontario County, New York IDA IDR Refunding -
Seneca Foods Corporation Project, 4.15%,
Due 3/08/00 5,185,000 5,185,000
Wayne County, New York IDA IDR - Seneca Foods
Corporation Project, 4.15%, Due 3/08/00 5,060,000 5,060,000
--------------
10,245,000
NORTH CAROLINA 0.5%
Guilford County, North Carolina Industrial
Facilities and PCFA Revenue - High Point
Chemical Project, 4.80%, Due 3/08/00 3,000,000 3,000,000
Mecklenburg County, North Carolina Industrial
Facilities and PCFA Industrial Revenue - Okaya
Shinnichi Corporation of America Project,
5.40%, Due 3/08/00 3,290,000 3,290,000
New Hanover County, North Carolina Industrial
Facilities Revenue - Wilmington Machinery, Inc.
Project, 4.20%, Due 3/08/00 765,000 765,000
Wake County, North Carolina Industrial
Facilities and PCFA IDR - Aeroglide
Corporation Project, 4.20%, Due 3/08/00 1,350,000 1,350,000
--------------
8,405,000
OHIO 0.1%
Trumbull County, Ohio IDR - ATD Corporation
Project, 5.25%, Due 3/08/00 1,120,000 1,120,000
PENNSYLVANIA 0.4%
Columbia County, Pennsylvania IDA IDR -
Kleerdex Company Project, 5.50%,
Due 3/08/00 6,500,000 6,500,000
SOUTH CAROLINA 0.5%
South Carolina Jobs EDA EDR - Advanced
Automation, Inc. Project, 4.46%, Due 3/08/00 3,800,000 3,800,000
South Carolina Jobs EDA EDR - Para-Chem
Southern, Inc. Project, 4.46%, Due 3/08/00 5,000,000 5,000,000
--------------
8,800,000
TENNESSEE 0.9%
Anderson County, Tennessee IDB Revenue -
Becromal of America, Inc. Project, 4.45%,
Due 3/08/00 1,965,000 1,965,000
Dickson, Tennessee Health, Educational &
Housing Facilities Board MFHR - Autumn Park
Apartments Project, 4.60%, Due 3/08/00 5,000,000 5,000,000
Hamilton County, Tennessee IDB MFHR - The
Waterford Place Apartments Project, 4.72%,
Due 3/08/00 9,600,000 9,600,000
--------------
16,565,000
TEXAS 1.0%
Angelina and Neches River Authority Refunding -
Temple-Inland Forest Products Corporation
Project, 4.50%, Due 3/08/00 7,350,000 7,350,000
Harris County, Texas HFC MFHR - Torrey Chase
Apartments Project, 4.67%, Due 3/08/00 5,420,000 5,420,000
Waller County, Texas IDC IDR - McKesson Water
Products Projects, 4.95%, Due 3/08/00 6,000,000 6,000,000
--------------
18,770,000
WASHINGTON 0.3%
Lummi Nation, Washington Revenue - Life
Assisted Living Project, 4.70%, Due 3/08/00 1,655,000 1,655,000
Yakima, Washington Housing Authority
Revenue - Klickitat Valley Hospital Project,
4.60%, Due 3/08/00 3,215,000 3,215,000
--------------
4,870,000
WISCONSIN 0.5%
Janesville, Wisconsin IDR Refunding - Seneca
Foods Corporation Project, 4.15%,
Due 3/08/00 7,710,000 7,710,000
Menomonee Falls, Wisconsin IDR - Butler Paper
Company Project, 4.90%, Due 3/08/00 2,000,000 2,000,000
--------------
9,710,000
--------------
Total Weekly Variable Rate Put Bonds 318,618,012
DAILY VARIABLE RATE PUT BONDS 4.6% (d)
DISTRICT OF COLUMBIA
District of Columbia Revenue:
Tranche 1, 5.30%, Due 3/01/00 30,500,000 30,500,000
Tranche 2, 5.30%, Due 3/01/00 20,000,000 20,000,000
Tranche 3, 5.30%, Due 3/01/00 32,000,000 32,000,000
--------------
82,500,000
MUNICIPAL MONEY MARKET FUNDS 4.0%
MULTIPLE STATES
Strong Municipal Money Market Fund (g) 71,400,000 71,400,000
- -----------------------------------------------------------------------------------------
Total Short-Term Investments (Cost $950,797,773) 947,490,720
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
Total Investments in Securities (Cost $1,768,816,234) 97.6% 1,748,877,954
Other Assets and Liabilities, Net 2.4% 43,293,550
- -----------------------------------------------------------------------------------------
Net Assets 100.0% $1,792,171,504
=========================================================================================
</TABLE>
<TABLE>
<CAPTION>
FUTURES
- -------------------------------------------------------------------------------------------
Underlying
Expiration Face Amount Unrealized
Date at Value Depreciation
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Sold:
65 Municipal Bond Futures 3/00 $6,063,281 $80,625
</TABLE>
26
<PAGE>
- --------------------------------------------------------------------------------
STRONG HERITAGE MONEY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSIT 0.9%
Royal Bank of Canada, 5.15% $13,000,000 5.19% 3/21/00 $12,999,795
- ------------------------------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit 12,999,795
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER 88.3%
AES Barbers Point, Inc. 2,100,000 5.80 3/31/00 2,089,850
AESOP Funding Corporation (b) 9,400,000 5.87 4/06/00 9,344,822
Abbey National North America Corporation 9,000,000 5.90 3/09/00 8,988,200
Alliance & Leicester PLC (b) 8,000,000 5.84 4/24/00 7,929,920
13,200,000 5.85 4/11/00 13,112,055
American Honda Finance Corporation 5,000,000 5.82 4/10/00 4,967,667
6,000,000 5.90 5/01/00 5,940,017
Ascot Capital Corporation (b) 12,250,000 5.82 3/16/00 12,220,294
8,000,000 5.86 4/10/00 7,947,911
Asset Backed Capital Finance, Inc. (b) 11,500,000 5.92 4/24/00 11,397,880
Atlantis One Funding Corporation 9,567,000 5.90 5/03/00 9,468,221
5,900,000 5.90 5/05/00 5,837,149
Avon Capital Corporation (b) 12,125,000 5.78 3/13/00 12,101,639
3,830,000 5.85 4/18/00 3,800,126
Banque Nationale de Paris Canada 10,000,000 5.80 3/01/00 10,000,000
Barton Capital Corporation (b) 10,000,000 5.85 4/04/00 9,944,750
` 5,450,000 5.85 4/10/00 5,414,575
3,000,000 5.87 4/06/00 2,982,390
Bavaria Universal Funding Corporation (b) 10,450,000 5.82 3/24/00 10,411,143
Beta Finance, Inc. (b) 5,000,000 5.93 5/22/00 4,932,464
Blue Ridge Asset Funding Corporation (b) 10,000,000 5.80 3/03/00 9,996,778
9,600,000 5.95 5/19/00 9,474,653
Brazos River/Brazoria County, Texas Harbor Navigational District Revenue 6,000,000 5.92 4/12/00 6,000,000
British Aerospace North America, Inc. (b) 13,000,000 5.81 3/01/00 13,000,000
3,000,000 5.90 3/06/00 2,997,542
2,675,000 6.10 3/10/00 2,670,921
British Telecommunications PLC 17,655,000 5.88 5/04/00 17,470,446
3,845,000 6.17 11/13/00 3,675,640
CBA Finance, Inc. 8,000,000 5.89 5/10/00 7,908,378
CC USA, Inc. (b) 20,000,000 6.05 8/15/00 19,438,694
Calcasieu Parish, Inc. Louisiana IDB Environmental Revenue 8,000,000 5.92 4/24/00 8,000,000
California PCFA Environmental Improvement Revenue (b) 14,300,000 5.84 3/09/00 14,300,000
7,000,000 5.89 4/12/00 7,000,000
Centric Capital Corporation (b) 1,525,000 6.10 3/07/00 1,523,450
Certain Funding Corporation (b) 11,000,000 5.82 3/10/00 10,983,995
9,700,000 5.93 5/02/00 9,600,936
Cogentrix of Richmond, Inc. 7,000,000 5.80 3/09/00 6,990,978
Compass Securitization LLC (b) 1,750,000 5.81 3/28/00 1,742,374
4,529,000 5.83 3/16/00 4,517,998
Computer Sciences Corporation (b) 10,705,000 5.82 4/11/00 10,633,996
8,904,000 5.85 4/12/00 8,843,230
Cooperative Association Tractor Dealers, Inc.:
Series A 2,000,000 5.80 3/03/00 1,999,356
4,800,000 5.80 3/10/00 4,793,040
9,900,000 5.88 4/13/00 9,830,469
4,800,000 6.05 4/05/00 4,771,767
Series B 2,000,000 5.80 3/06/00 1,998,389
8,000,000 5.85 4/07/00 7,951,900
3,800,000 5.85 4/11/00 3,774,682
3,750,000 5.90 4/25/00 3,716,198
1,935,000 5.92 5/11/00 1,912,408
DaimlerChrysler North America Holding Corporation 13,300,000 5.91 5/18/00 13,129,693
Den Norske Bank 10,000,000 5.78 3/28/00 9,956,650
10,000,000 5.95 5/17/00 9,872,736
Deutsche Bank Financial, Inc. 11,900,000 5.83 4/28/00 11,788,226
Edison Asset Securitization LLC (b) 8,047,000 5.84 4/05/00 8,001,311
10,000,000 5.85 4/03/00 9,946,375
</TABLE>
27
<PAGE>
<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) February 29, 2000
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
STRONG HERITAGE MONEY FUND (continued)
- ---------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Emerson Electric Company (b) $ 4,500,000 5.87% 5/04/00 $ 4,453,040
Enterprise Funding Corporation (b) 11,250,000 5.88 4/17/00 11,163,637
Equilon Enterprises LLC 7,100,000 5.75 3/07/00 7,093,196
6,000,000 5.85 4/13/00 5,958,075
Eureka Securitization, Inc. (b) 900,000 5.80 3/02/00 899,855
15,450,000 5.81 3/28/00 15,382,677
Fidex PLC (b) 19,050,000 5.85 3/29/00 18,963,323
Fina Oil & Chemical Company (b) 8,000,000 5.85 4/04/00 7,955,800
Fleet Boston Corporation 8,000,000 5.77 3/14/00 7,983,331
Ford Motor Credit Company 7,540,000 5.76 3/03/00 7,537,587
Formosa Plastics Corporation USA 6,000,000 5.88 4/10/00 5,960,800
Forrestal Funding Master Trust (b) 18,000,000 5.87 4/03/00 17,903,145
3,000,000 5.92 5/15/00 2,963,000
Fountain Square Commercial Corporation (b) 7,698,000 5.82 3/10/00 7,686,799
1,955,000 5.90 4/17/00 1,939,941
2,085,000 5.90 4/25/00 2,066,206
3,000,000 5.92 5/15/00 2,963,000
GTE Funding, Inc. 2,700,000 5.75 3/21/00 2,691,375
Galaxy Funding, Inc. (b) 20,000,000 5.95 5/08/00 19,775,222
General Electric Capital Corporation 13,000,000 5.92 3/01/00 13,000,000
Goldman Sachs Group LP 6,000,000 5.91 3/10/00 5,991,135
Greenwich Funding Corporation (b) 18,000,000 5.80 3/08/00 17,979,700
Greyhawk Funding LLC (b) 8,550,000 5.80 3/20/00 8,523,828
Gulf Coast IDA Environmental Facilities Revenue 3,000,000 5.96 4/17/00 3,000,000
Gulf Coast Waste Disposal Authority PCR 4,000,000 5.79 3/07/00 4,000,000
6,000,000 5.87 4/14/00 6,000,000
Halifax PLC 8,000,000 5.73 3/17/00 7,979,627
9,950,000 5.88 5/10/00 9,836,238
ING America Insurance Holdings, Inc. 2,400,000 5.84 3/15/00 2,394,549
19,000,000 5.89 5/01/00 18,810,375
IPALCO Enterprises (b) 6,400,000 5.73 3/10/00 6,390,832
Kitty Hawk Funding Corporation (b) 1,415,000 5.84 3/24/00 1,409,720
Leland Stanford Junior University 8,200,000 5.90 5/24/00 8,087,113
13,000,000 6.00 8/07/00 12,655,500
Lexington Parker Capital Corporation (b) 15,700,000 5.80 3/06/00 15,687,339
3,000,000 5.80 3/13/00 2,994,200
Liberty Street Funding Corporation (b) 14,825,000 5.90 4/03/00 14,744,821
5,000,000 5.90 4/10/00 4,967,222
Market Street Funding Corporation (b) 2,000,000 5.79 3/07/00 1,998,070
Marshall & Ilsley Corporation 20,000,000 5.81 3/30/00 19,906,394
Merrill Lynch & Company, Inc. 2,700,000 5.83 4/04/00 2,685,134
19,000,000 5.90 5/02/00 18,806,939
Mobil Oil Corporation Employee Stock Ownership Plan Trust (b) 17,000,000 5.78 3/29/00 16,923,576
JP Morgan & Company, Inc. 6,400,000 5.83 4/11/00 6,357,506
Morgan Stanley, Dean Witter & Company 11,000,000 5.78 3/09/00 10,985,871
7,875,000 5.90 4/14/00 7,818,213
Moriarty, Ltd./Moriarty LLC (b) 15,000,000 5.85 3/21/00 14,951,250
2,000,000 5.86 4/13/00 1,986,001
4,500,000 5.95 4/26/00 4,458,350
Nationwide Building Society 4,000,000 5.85 4/25/00 3,964,250
8,250,000 5.86 4/05/00 8,202,998
2,000,000 5.90 5/08/00 1,977,711
New York Times Company 10,000,000 5.80 3/27/00 9,958,111
Nordbanken North America, Inc. 3,070,000 5.75 3/06/00 3,067,548
10,000,000 5.83 4/14/00 9,928,744
3,000,000 5.85 4/12/00 2,979,525
3,650,000 5.92 5/24/00 3,599,581
Oakland-Alameda County, California Coliseum Authority 10,000,000 5.81 3/14/00 10,000,000
Oklahoma Industrial Finance Authority 5,440,000 6.00 5/01/00 5,440,000
Old Line Funding Corporation (b) 12,000,000 5.76 3/01/00 12,000,000
7,700,000 5.76 3/03/00 7,697,536
PACCAR Financial Corporation 4,000,000 5.88 5/05/00 3,957,533
Parthenon Receivables Funding LLC (b) 3,280,000 5.81 3/23/00 3,268,354
17,713,000 5.90 4/25/00 17,553,337
</TABLE>
28
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
STRONG HERITAGE MONEY FUND (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Peacock Funding Corporation (b) $ 5,100,000 5.75% 3/13/00 $ 5,090,225
4,000,000 5.86 4/06/00 3,976,560
5,880,000 5.93 5/22/00 5,800,578
6,500,000 5.95 5/30/00 6,403,313
Repeat Offering Securitisation Entity, Inc. (b) 20,900,000 5.87 4/13/00 20,753,427
Scaldis Capital, Ltd./Scaldis Capital LLC (b) 17,670,000 5.90 4/17/00 17,533,892
Sigma Finance, Inc. (b) 1,800,000 5.89 4/11/00 1,787,926
6,000,000 5.90 4/25/00 5,945,917
8,900,000 5.91 5/03/00 8,807,952
4,000,000 5.92 5/25/00 3,944,089
Society Of New York Hospital Fund, Inc. 3,400,000 5.88 4/12/00 3,376,676
4,000,000 5.92 5/08/00 3,955,271
Spintab-Swedmortgage AB 21,000,000 5.86 4/25/00 20,811,992
Stellar Funding Group, Inc. (b) 6,766,000 5.85 3/29/00 6,735,215
2,317,000 5.85 3/30/00 2,306,081
8,667,000 5.85 3/31/00 8,624,748
3,000,000 5.90 4/10/00 2,980,333
Sunshine State Governmental Financing Commission 5,500,000 5.82 3/02/00 5,499,111
4,000,000 5.92 5/08/00 3,955,271
Swiss RE Financial Products Corporation (b) 2,000,000 5.78 3/08/00 1,997,752
9,329,000 5.80 3/30/00 9,285,413
7,000,000 5.90 4/27/00 6,934,608
Total Fina SA (b) 6,000,000 5.85 4/20/00 5,951,250
Triple-A One Funding Corporation (b) 3,400,000 5.74 3/01/00 3,400,000
Tulip Funding Corporation (b) 8,122,000 5.83 3/28/00 8,086,487
UBN, Inc. 13,000,000 5.99 5/25/00 12,816,140
USAA Capital Corporation 2,000,000 5.82 4/17/00 1,984,803
Unifunding, Inc. 14,200,000 5.91 5/04/00 14,050,805
Variable Funding Capital Corporation (b) 3,000,000 5.75 3/06/00 2,997,604
5,300,000 5.77 3/03/00 5,298,301
8,000,000 5.86 4/18/00 7,937,493
Victory Receivables Corporation (b) 2,200,000 5.81 3/17/00 2,194,319
9,000,000 5.82 3/27/00 8,962,170
7,000,000 5.87 4/03/00 6,962,334
Warner Lambert Company 1,021,300 5.50 Upon Demand 1,021,300
West Baton Rouge Parish, Louisiana Industrial District Number 3 Revenue (b) 8,000,000 5.88 3/06/00 8,000,000
Whiting, Indiana Industrial Sewage and Solid Waste Disposal Revenue 8,000,000 5.79 3/07/00 8,000,000
Windmill Funding Corporation (b) 8,127,000 5.88 4/17/00 8,064,612
Wisconsin Electric Power Company 100 5.50 Upon Demand 100
Wood Street Funding Corporation (b) 7,578,000 5.80 3/06/00 7,571,896
7,770,000 5.83 3/28/00 7,736,026
Yale University 8,000,000 5.79 3/20/00 7,975,553
Yorkshire Building Society 7,000,000 5.91 5/19/00 6,909,216
8,597,000 5.93 5/08/00 8,500,704
- ----------------------------------------------------------------------------------------------------------------------------------
Total Commercial Paper 1,266,236,485
- ----------------------------------------------------------------------------------------------------------------------------------
Corporate Obligations 1.5%
LaSalle Bank North America, Chicago, Illinois Short-Term Bank Notes:
Tranche 00023, 6.50% 8,000,000 6.50 10/30/00 8,000,000
Tranche 00024, 6.50% 13,000,000 6.50 11/03/00 13,000,000
- ----------------------------------------------------------------------------------------------------------------------------------
Total Corporate Obligations 21,000,000
- ----------------------------------------------------------------------------------------------------------------------------------
Taxable Variable Rate Put Bonds 5.6%
Alabama IDA IDR 1,125,000 6.00 3/02/00 1,125,000
Alabama Incentives Financing Authority Special Obligation 5,000,000 6.00 3/02/00 5,000,000
Aurora, Kane & DuPage Counties, Illinois IDR 2,900,000 5.93 3/02/00 2,900,000
Botsford General Hospital Revenue 4,400,000 5.95 3/01/00 4,400,000
Galliano Marine Services, Inc. 4,620,000 6.00 3/02/00 4,620,000
KinderCare Learning Centers, Inc. 4,500,000 6.10 3/01/00 4,500,000
Kings Glen Apartments LLC 3,298,000 6.00 3/02/00 3,298,000
Mississippi Business Finance Corporation IDR - GE Plastics Project 2,500,000 5.87 3/01/00 2,500,000
New Jersey EDA EDR - MSNBC/CNBC 8,200,000 5.87 3/01/00 8,200,000
New Jersey Sports and Exposition Authority Sports Complex
Subordinated Refunding Revenue 2,000,000 5.99 3/01/00 2,000,000
Pointe Chase Apartments LLC 5,500,000 6.00 3/02/00 5,500,000
</TABLE>
29
<PAGE>
<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) February 29, 2000
- -----------------------------------------------------------------------------------------------------------------------------------
STRONG HERITAGE MONEY FUND (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Radiation Oncology Partners LLP $ 2,675,000 6.00% 3/02/00 $ 2,675,000
Sempra Energy Employee Stock Ownership Plan and Trust 9,000,000 5.98 3/01/00 9,000,000
T3 Holdings, Inc. (b) 7,000,000 5.88 3/01/00 7,000,000
Thayer Properties LLC 2,990,000 6.00 3/02/00 2,990,000
Tifton Mall, Inc. 4,665,000 6.00 3/02/00 4,665,000
WLB LLC 10,000,000 6.00 3/02/00 10,000,000
- -----------------------------------------------------------------------------------------------------------------------------------
Total Taxable Variable Rate Put Bonds 80,373,000
- -----------------------------------------------------------------------------------------------------------------------------------
United States Government and Agency Issues 5.4%
Federal Home Loan Bank Bonds:
5.08%, Due 3/03/00 18,500,000 5.08 3/03/00 18,500,000
5.10%, Due 3/08/00 18,500,000 5.10 3/08/00 18,500,000
5.14%, Due 3/08/00 18,200,000 5.14 3/08/00 18,200,000
6.75%, Due 3/15/01 (f) 8,000,000 6.75 3/15/01 8,000,000
6.76%, Due 3/13/01 (f) 14,000,000 6.76 3/13/01 14,000,000
- -----------------------------------------------------------------------------------------------------------------------------------
Total United States Government and Agency Issues 77,200,000
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investments in Securities 101.7% 1,457,809,280
Other Assets and Liabilities, Net (1.7%) (24,035,789)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $1,433,773,491
===================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
STRONG INVESTORS MONEY FUND
- -----------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Certificates of Deposit 0.6%
Royal Bank of Canada, 5.15% $3,000,000 5.19% 3/21/00 $ 2,999,953
- -----------------------------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit 2,999,953
- -----------------------------------------------------------------------------------------------------------------------------------
Commercial Paper 93.1%
AES Barbers Point, Inc. 2,827,000 5.80 3/31/00 2,813,336
AESOP Funding Corporation (b) 820,000 5.80 3/03/00 819,736
2,000,000 5.87 4/06/00 1,988,260
Abbey National North America Corporation 4,000,000 5.90 3/09/00 3,994,756
Alliance & Leicester PLC (b) 2,680,000 5.84 4/24/00 2,656,523
4,200,000 5.90 5/08/00 4,153,193
American Honda Finance Corporation 5,000,000 5.82 4/10/00 4,967,667
2,500,000 5.91 5/17/00 2,468,398
Ascot Capital Corporation (b) 6,500,000 5.82 3/16/00 6,484,237
Asset Backed Capital Finance, Inc. (b) 4,050,000 5.85 3/03/00 4,048,684
2,500,000 5.92 4/24/00 2,477,800
Atlantis One Funding Corporation 3,000,000 5.90 5/03/00 2,969,025
2,700,000 5.90 5/05/00 2,671,238
Avon Capital Corporation (b) 3,875,000 5.78 3/13/00 3,867,534
2,765,000 5.85 4/18/00 2,743,433
Banque Nationale de Paris Canada 2,120,000 5.80 3/01/00 2,120,000
Barton Capital Corporation (b) 7,000,000 5.85 4/04/00 6,961,325
Bavaria Universal Funding Corporation (b) 4,100,000 5.82 3/24/00 4,084,755
Beta Finance, Inc. (b) 2,500,000 5.93 5/22/00 2,466,232
Blue Ridge Asset Funding Corporation (b) 1,500,000 5.81 3/14/00 1,496,853
5,000,000 5.95 5/19/00 4,934,715
Brazos River/Brazoria County, Texas Harbor Navigational District Revenue 2,000,000 5.92 4/12/00 2,000,000
British Aerospace North America, Inc. (b) 1,500,000 5.81 3/01/00 1,500,000
2,000,000 5.90 3/06/00 1,998,361
3,900,000 5.99 3/10/00 3,894,162
British Telecommunications PLC 3,000,000 5.88 5/04/00 2,968,640
3,700,000 6.17 11/13/00 3,537,026
CBA Finance, Inc. 3,000,000 5.89 5/10/00 2,965,642
CC USA, Inc. (b) 7,000,000 6.05 8/15/00 6,803,543
Calcasieu Parish, Inc. Louisiana IDB Environmental Revenue 3,000,000 5.92 4/24/00 3,000,000
California PCFA Environmental Improvement Revenue (b) 3,000,000 5.79 3/08/00 3,000,000
30
<PAGE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
STRONG INVESTORS MONEY FUND (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$2,900,000 5.84% 3/09/00 $ 2,900,000
Certain Funding Corporation (b) 2,597,000 5.80 3/10/00 2,593,234
5,000,000 5.95 5/22/00 4,932,236
Cogentrix of Richmond, Inc. 2,000,000 5.80 3/09/00 1,997,422
Compass Securitization LLC (b) 2,060,000 5.81 3/28/00 2,051,023
2,800,000 5.83 3/22/00 2,790,478
Computer Sciences Corporation (b) 1,500,000 5.76 3/14/00 1,496,880
1,800,000 5.82 4/11/00 1,788,069
4,000,000 5.85 4/12/00 3,972,700
Cooperative Association Tractor Dealers, Inc.:
Series A 2,000,000 5.85 4/04/00 1,988,950
5,100,000 5.88 4/13/00 5,064,181
Series B 7,000,000 5.85 4/07/00 6,957,913
DaimlerChrysler North America Holding Corporation 7,000,000 5.91 5/18/00 6,910,365
Den Norske Bank 4,700,000 5.78 3/28/00 4,679,626
3,000,000 5.95 5/17/00 2,961,821
Deutsche Bank Financial, Inc. 4,000,000 5.83 4/28/00 3,962,429
Edison Asset Securitization LLC (b) 2,181,000 5.75 3/02/00 2,180,652
3,300,000 5.85 4/03/00 3,282,304
Equilon Enterprises LLC 2,000,000 5.75 3/07/00 1,998,083
5,000,000 5.85 4/13/00 4,965,063
Eureka Securitization, Inc. (b) 3,750,000 5.81 3/28/00 3,733,659
Fidex PLC (b) 6,200,000 5.85 3/29/00 6,171,790
Fleet Boston Corporation 2,000,000 5.77 3/14/00 1,995,833
Ford Motor Credit Company Puerto Rico, Inc. 2,350,000 5.82 4/06/00 2,336,323
Formosa Plastics Corporation USA 4,000,000 6.00 3/13/00 3,992,000
2,000,000 6.05 3/15/00 1,995,294
Forrestal Funding Master Trust (b) 1,550,000 5.85 3/29/00 1,542,948
3,500,000 5.87 4/03/00 3,481,167
2,000,000 5.92 5/15/00 1,975,333
Fountain Square Commercial Corporation (b) 2,548,000 5.82 3/09/00 2,544,704
1,781,000 5.90 4/07/00 1,770,200
1,495,000 5.90 4/24/00 1,481,769
GTE Funding, Inc. 4,000,000 5.77 3/17/00 3,989,742
1,500,000 5.77 3/20/00 1,495,432
Galaxy Funding, Inc. (b) 2,500,000 5.95 5/08/00 2,471,903
5,000,000 5.97 5/24/00 4,930,350
General Electric Capital Corporation 6,000,000 5.92 3/01/00 6,000,000
Goldman Sachs Group LP 4,000,000 5.91 3/10/00 3,994,090
1,000,000 5.91 5/01/00 989,986
Greenwich Funding Corporation (b) 4,600,000 5.80 3/08/00 4,594,812
Gulf Coast IDA Environmental Facilities Revenue 2,000,000 5.96 4/17/00 2,000,000
Gulf Coast Waste Disposal Authority PCR 2,000,000 5.79 3/07/00 2,000,000
2,020,000 5.87 4/14/00 2,020,000
Halifax PLC 5,000,000 5.73 3/17/00 4,987,267
2,000,000 5.88 5/10/00 1,977,133
ING America Insurance Holdings, Inc. 7,000,000 5.89 5/01/00 6,930,138
IPALCO Enterprises (b) 2,784,000 5.73 3/07/00 2,781,341
Kitty Hawk Funding Corporation (b) 3,424,000 5.84 3/27/00 3,409,558
Leland Stanford Junior University 3,800,000 5.80 4/11/00 3,774,899
3,800,000 5.90 5/24/00 3,747,687
Lexington Parker Capital Corporation (b) 3,300,000 5.80 3/06/00 3,297,342
4,000,000 5.80 3/13/00 3,992,267
Liberty Street Funding Corporation (b) 1,725,000 5.88 4/10/00 1,713,730
5,175,000 5.90 4/03/00 5,147,012
Market Street Funding Corporation (b) 1,000,000 5.79 3/07/00 999,035
Marshall & Ilsley Corporation 7,700,000 5.81 3/30/00 7,663,961
Merrill Lynch & Company, Inc. 6,000,000 5.90 5/02/00 5,939,033
Mobil Oil Corporation Employee Stock Ownership Plan Trust (b) 7,000,000 5.78 3/29/00 6,968,531
JP Morgan & Company, Inc. 3,600,000 5.83 4/11/00 3,576,097
Morgan Stanley, Dean Witter & Company 4,125,000 5.78 3/09/00 4,119,702
3,000,000 5.90 4/14/00 2,978,366
Moriarty, Ltd./Moriarty LLC (b) 1,700,000 5.85 3/21/00 1,694,475
3,000,000 5.86 4/13/00 2,979,002
1,800,000 5.95 4/26/00 1,783,340
31
<PAGE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) February 29, 2000
- ---------------------------------------------------------------------------------------------------------------------------------
STRONG INVESTORS MONEY FUND (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nationwide Building Society $4,550,000 5.85% 4/05/00 $ 4,524,123
New York Times Company 2,000,000 5.75 3/02/00 1,999,681
5,000,000 5.80 3/27/00 4,979,056
Nordbanken North America, Inc. 1,280,000 5.75 3/06/00 1,278,978
5,280,000 5.83 4/14/00 5,242,377
1,000,000 5.92 5/24/00 986,186
Oakland-Alameda County, California Coliseum Authority 3,000,000 5.81 3/14/00 3,000,000
Oklahoma Industrial Finance Authority 5,335,000 6.00 5/01/00 5,335,000
Old Line Funding Corporation (b) 3,000,000 5.76 3/01/00 3,000,000
4,000,000 5.88 4/17/00 3,969,293
PACCAR Financial Corporation 3,000,000 5.88 5/05/00 2,968,150
Parthenon Receivables Funding LLC (b) 2,000,000 5.81 3/23/00 1,992,899
5,000,000 5.90 4/25/00 4,954,931
Peacock Funding Corporation (b) 5,000,000 5.86 4/06/00 4,970,700
2,700,000 5.95 5/30/00 2,659,838
Repeat Offering Securitisation Entity, Inc. (b) 7,000,000 5.87 4/13/00 6,950,905
Sara Lee Corporation 1,161,000 5.48 Upon Demand 1,161,000
Scaldis Capital, Ltd./Scaldis Capital LLC (b) 7,200,000 5.90 4/17/00 7,144,540
Sigma Finance, Inc. (b) 4,000,000 5.90 4/25/00 3,963,944
3,000,000 5.92 5/25/00 2,958,067
Society Of New York Hospital Fund, Inc. 2,800,000 5.88 4/12/00 2,780,792
2,000,000 5.92 5/08/00 1,977,636
Spintab-Swedmortgage AB 3,500,000 5.86 4/25/00 3,468,665
Stellar Funding Group, Inc. (b) 1,570,000 5.85 3/24/00 1,564,132
3,850,000 5.85 3/29/00 3,832,483
Sunshine State Governmental Financing Commission 3,000,000 5.82 3/02/00 2,999,515
3,000,000 5.92 5/08/00 2,966,453
Swiss RE Financial Products Corporation (b) 2,000,000 5.75 3/06/00 1,998,403
3,405,000 5.90 4/27/00 3,373,192
Total Fina SA (b) 4,800,000 5.85 4/20/00 4,761,000
Triple-A One Funding Corporation (b) 3,359,000 5.74 3/01/00 3,359,000
Tulip Funding Corporation (b) 3,300,000 5.83 3/28/00 3,285,571
4,300,000 5.94 5/19/00 4,243,949
UBN, Inc. 4,000,000 5.99 5/25/00 3,943,428
USAA Capital Corporation 2,000,000 5.82 4/17/00 1,984,803
Unifunding, Inc. 4,000,000 5.91 5/04/00 3,957,973
Variable Funding Capital Corporation (b) 5,000,000 5.75 3/06/00 4,996,007
2,500,000 5.86 4/18/00 2,480,467
Victory Receivables Corporation (b) 2,000,000 5.81 3/17/00 1,994,836
3,000,000 5.82 3/27/00 2,987,390
2,000,000 5.87 4/03/00 1,989,238
Warner Lambert Company 161,700 5.50 Upon Demand 161,700
West Baton Rouge Parish, Louisiana Industrial District Number 3 Revenue (b) 3,000,000 5.88 3/06/00 3,000,000
Whiting, Indiana Industrial Sewage and Solid Waste Disposal Revenue 5,000,000 5.79 3/07/00 5,000,000
Windmill Funding Corporation (b) 1,180,000 5.73 3/03/00 1,179,624
4,890,000 5.87 4/18/00 4,851,728
Wisconsin Electric Power Company 100 5.50 Upon Demand 100
Wood Street Funding Corporation (b) 2,150,000 5.83 3/28/00 2,140,599
Yale University 4,000,000 5.79 3/20/00 3,987,776
Yorkshire Building Society 1,500,000 5.91 5/19/00 1,480,546
- ---------------------------------------------------------------------------------------------------------------------------------
Total Commercial Paper 481,082,428
- ---------------------------------------------------------------------------------------------------------------------------------
Corporate Obligations 1.3%
LaSalle Bank North America, Chicago, Illinois Short-Term Bank Notes:
Tranche 00023, 6.50% 4,000,000 6.50 10/30/00 4,000,000
Tranche 00024, 6.50% 3,000,000 6.50 11/03/00 3,000,000
- ---------------------------------------------------------------------------------------------------------------------------------
Total Corporate Obligations 7,000,000
- ---------------------------------------------------------------------------------------------------------------------------------
Taxable Variable Rate Put Bonds 3.4%
Alabama Incentives Financing Authority Special Obligation 5,000,000 6.00 3/02/00 5,000,000
Botsford General Hospital Revenue 2,000,000 5.95 3/01/00 2,000,000
Concrete Company 1,280,000 6.00 3/02/00 1,280,000
Kings Glen Apartments LLC 1,240,994 6.00 3/02/00 1,240,994
Pointe Chase Apartments LLC 2,500,000 6.00 3/02/00 2,500,000
32
<PAGE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
STRONG INVESTORS MONEY FUND (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Radiation Oncology Partners LLP $ 880,000 6.00% 3/02/00 $ 880,000
Sempra Energy Employee Stock Ownership Plan and Trust 2,000,000 5.98 3/01/00 2,000,000
T3 Holdings, Inc. (b) 3,000,000 5.88 3/01/00 3,000,000
- ---------------------------------------------------------------------------------------------------------------------------------
Total Taxable Variable Rate Put Bonds 17,900,994
- ---------------------------------------------------------------------------------------------------------------------------------
United States Government and Agency Issues 3.2%
Federal Home Loan Bank Bonds:
5.08%, Due 3/03/00 3,000,000 5.08 3/03/00 3,000,000
5.10%, Due 3/08/00 3,000,000 5.10 3/08/00 3,000,000
5.14%, Due 3/08/00 3,600,000 5.14 3/08/00 3,600,000
6.75%, Due 3/15/01 (f) 7,000,000 6.75 3/15/01 7,000,000
- ---------------------------------------------------------------------------------------------------------------------------------
Total United States Government and Agency Issues 16,600,000
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
Total Investments in Securities 101.6% 525,583,375
Other Assets and Liabilities, Net (1.6%) (8,463,080)
=================================================================================================================================
Net Assets 100.0% $ 517,120,295
=================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Strong Money Market Fund
- ---------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Certificates of Deposit 0.7%
Royal Bank of Canada, 5.15% $14,000,000 5.19% 3/21/00 $ 13,999,779
- ---------------------------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit 13,999,779
- ---------------------------------------------------------------------------------------------------------------------------------
Commercial Paper 88.4%
AES Shady Point, Inc. 4,531,000 5.92 3/02/00 4,530,255
AESOP Funding Corporation (b) 9,940,000 5.80 3/03/00 9,936,797
3,000,000 5.87 4/06/00 2,982,390
Abbey National North America Corporation 12,000,000 5.90 3/09/00 11,984,267
Alliance & Leicester PLC (b) 10,500,000 5.84 4/24/00 10,408,020
11,350,000 5.85 4/11/00 11,274,381
Alpine Securitization Corporation (b) 20,300,000 5.80 3/15/00 20,254,212
5,378,000 5.80 3/22/00 5,359,804
American Honda Finance Corporation 15,000,000 5.82 4/10/00 14,903,000
6,000,000 5.90 5/01/00 5,940,017
7,500,000 5.91 5/17/00 7,405,194
Ascot Capital Corporation (b) 17,140,000 5.82 3/16/00 17,098,436
6,000,000 5.86 4/10/00 5,960,933
Asset Backed Capital Finance, Inc. (b) 13,700,000 5.90 4/10/00 13,610,189
10,000,000 5.90 4/17/00 9,922,972
Atlantis One Funding Corporation 25,017,000 5.90 5/05/00 24,750,499
Avon Capital Corporation (b) 4,000,000 5.78 3/13/00 3,992,293
Banque Nationale de Paris Canada 10,000,000 5.80 3/01/00 10,000,000
Barton Capital Corporation (b) 8,000,000 5.85 4/04/00 7,955,800
15,000,000 5.85 4/10/00 14,902,500
1,550,000 5.87 4/06/00 1,540,902
Bavaria Universal Funding Corporation (b) 7,000,000 5.82 3/24/00 6,973,972
8,000,000 5.83 3/22/00 7,972,793
Beta Finance, Inc. (b) 5,000,000 5.93 5/22/00 4,932,464
Blue Ridge Asset Funding Corporation (b) 4,600,000 5.81 3/14/00 4,590,349
5,898,000 5.81 3/17/00 5,882,770
12,800,000 5.95 5/19/00 12,632,871
Brazos River/Brazoria County, Texas Harbor Navigational District Revenue 7,000,000 5.92 4/12/00 7,000,000
British Aerospace North America, Inc. (b) 3,100,000 5.81 3/01/00 3,100,000
10,000,000 5.90 3/06/00 9,991,806
10,825,000 5.98 3/10/00 10,808,810
British Telecommunications PLC 3,000,000 5.88 5/04/00 2,968,640
18,800,000 6.17 11/13/00 17,971,917
CBA Finance, Inc. 10,000,000 5.89 5/10/00 9,885,472
CC USA, Inc. (b) 23,000,000 6.05 8/15/00 22,354,499
Calcasieu Parish, Inc. Louisiana IDB Environmental Revenue 10,000,000 5.92 4/24/00 10,000,000
33
<PAGE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) February 29, 2000
- ---------------------------------------------------------------------------------------------------------------------------------
STRONG MONEY MARKET FUND (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
California PCFA Environmental Improvement Revenue (b) $ 7,800,000 5.79% 3/08/00 $ 7,800,000
14,000,000 5.89 4/07/00 14,000,000
Centric Capital Corporation (b) 3,200,000 5.80 4/04/00 3,182,471
1,900,000 6.10 3/07/00 1,898,068
Certain Funding Corporation (b) 5,000,000 5.85 3/10/00 4,992,725
10,612,000 5.87 4/17/00 10,530,674
4,300,000 5.93 5/02/00 4,256,085
1,790,000 5.95 5/22/00 1,765,741
Cogentrix of Richmond, Inc. 9,505,000 5.80 3/09/00 9,492,749
Compass Securitization LLC (b) 8,266,000 5.81 3/20/00 8,240,653
17,190,000 5.81 3/28/00 17,115,095
Computer Sciences Corporation (b) 6,000,000 5.76 3/14/00 5,987,520
17,020,000 5.82 4/11/00 16,907,145
Cooperative Association Tractor Dealers, Inc.:
Series A 2,000,000 5.80 3/03/00 1,999,356
9,900,000 5.80 3/10/00 9,885,645
4,300,000 5.88 4/13/00 4,269,800
5,200,000 6.05 4/05/00 5,169,414
Series B 2,000,000 5.80 3/06/00 1,998,389
3,000,000 5.80 3/08/00 2,996,617
7,800,000 5.85 4/07/00 7,753,103
Credit Suisse First Boston International Guernsey, Ltd. (b) 18,000,000 5.93 5/24/00 17,750,940
DaimlerChrysler North America Holding Corporation 29,700,000 5.90 5/18/00 29,320,285
Den Norske Bank 7,000,000 5.76 3/13/00 6,986,560
10,300,000 5.78 3/28/00 10,255,350
5,000,000 5.95 5/17/00 4,936,368
Deutsche Bank Financial, Inc. 14,100,000 5.83 4/28/00 13,967,562
Edison Asset Securitization LLC (b) 8,000,000 5.84 4/05/00 7,954,578
11,254,000 5.85 4/03/00 11,193,650
Emerson Electric Company (b) 15,500,000 5.87 5/04/00 15,338,249
Enterprise Funding Corporation (b) 3,050,000 5.78 3/02/00 3,049,510
10,750,000 5.88 4/17/00 10,667,476
Equilon Enterprises LLC 14,700,000 5.78 3/07/00 14,685,839
11,200,000 5.82 4/05/00 11,136,627
4,000,000 5.85 4/13/00 3,972,050
Eureka Securitization, Inc. (b) 1,200,000 5.80 3/02/00 1,199,807
10,550,000 5.81 3/28/00 10,504,028
18,000,000 5.86 4/03/00 17,903,310
Fidex PLC (b) 9,250,000 5.80 3/13/00 9,232,117
12,960,000 5.85 3/29/00 12,901,032
Fina Oil & Chemical Company (b) 20,000,000 5.75 3/03/00 19,993,611
Fleet Boston Corporation 10,000,000 5.77 3/14/00 9,979,164
Ford Motor Credit Company Puerto Rico, Inc. 3,000,000 5.77 3/29/00 2,986,537
12,650,000 5.82 4/06/00 12,576,377
Formosa Plastics Corporation USA 19,400,000 6.00 3/13/00 19,361,200
1,993,000 6.05 3/15/00 1,988,311
Forrestal Funding Master Trust (b) 19,800,000 5.87 4/03/00 19,693,460
2,150,000 5.92 5/15/00 2,123,483
Fountain Square Commercial Corporation (b) 8,606,000 5.80 3/23/00 8,575,497
3,898,000 5.92 5/15/00 3,849,925
GTE Funding, Inc. 4,000,000 5.75 3/21/00 3,987,222
6,606,000 5.77 3/17/00 6,589,059
6,200,000 5.77 3/20/00 6,181,119
12,700,000 6.12 3/10/00 12,680,569
Galaxy Funding, Inc. (b) 5,000,000 5.83 3/28/00 4,978,138
13,350,000 5.95 5/08/00 13,199,960
4,150,000 5.97 5/24/00 4,092,191
General Electric Capital Corporation 19,000,000 5.87 3/01/00 19,000,000
General Motors Corporation 19,000,000 5.76 3/09/00 18,975,680
Goldman Sachs Group LP 8,500,000 5.91 3/10/00 8,487,441
4,000,000 5.91 5/01/00 3,959,943
Greenwich Funding Corporation (b) 10,800,000 5.80 3/08/00 10,787,820
16,600,000 5.80 3/22/00 16,543,837
Gulf Coast Waste Disposal Authority PCR 4,000,000 5.79 3/07/00 4,000,000
7,000,000 5.87 4/14/00 7,000,000
</TABLE>
34
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
STRONG MONEY MARKET FUND (continued)
- --------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Halifax PLC 17,000,000 5.73% 3/17/00 $ 16,956,707
5,600,000 5.88 5/08/00 5,537,803
2,450,000 5.88 5/10/00 2,421,988
Henkel Corporation (b) 5,000,000 5.75 3/13/00 4,990,417
ING America Insurance Holdings, Inc. 20,200,000 5.89 5/01/00 19,998,398
IPALCO Enterprises (b) 6,140,000 5.73 3/07/00 6,134,136
Kitty Hawk Funding Corporation (b) 29,900,000 5.87 4/19/00 29,661,107
Leland Stanford Junior University 21,200,000 5.80 4/11/00 21,059,962
Lexington Parker Capital Corporation (b) 21,000,000 5.80 3/06/00 20,983,075
3,000,000 5.80 3/13/00 2,994,200
Liberty Street Funding Corporation (b) 23,275,000 5.89 4/10/00 23,122,604
Market Street Funding Corporation (b) 7,000,000 5.79 3/07/00 6,993,245
Marshall & Ilsley Corporation 22,300,000 5.81 3/30/00 22,195,630
Merrill Lynch & Company, Inc. 12,100,000 5.83 4/04/00 12,033,376
9,000,000 5.90 5/02/00 8,908,550
Mobil Oil Corporation Employee Stock Ownership Plan Trust (b) 26,000,000 5.78 3/29/00 25,883,116
JP Morgan & Company, Inc. 8,000,000 5.83 4/11/00 7,946,882
Morgan Stanley, Dean Witter & Company 19,400,000 5.71 3/20/00 19,341,536
4,600,000 5.78 3/09/00 4,594,092
Moriarty, Ltd./Moriarty LLC (b) 15,000,000 6.05 3/15/00 14,964,708
3,000,000 6.15 3/16/00 2,992,313
4,000,000 6.15 3/20/00 3,987,017
Nationwide Building Society 6,000,000 5.85 4/25/00 5,946,375
5,250,000 5.86 4/05/00 5,220,090
4,950,000 5.90 5/08/00 4,894,835
New York Times Company 11,950,000 5.75 3/02/00 11,948,091
4,850,000 5.76 3/16/00 4,838,360
Nordbanken North America, Inc. 14,720,000 5.83 4/14/00 14,615,112
8,000,000 5.92 5/24/00 7,889,493
Oakland-Alameda County, California Coliseum Authority 16,150,000 5.81 3/14/00 16,150,000
Oklahoma Industrial Finance Authority 10,000,000 6.00 5/01/00 10,000,000
Old Line Funding Corporation (b) 7,640,000 5.76 3/01/00 7,640,000
6,700,000 5.76 3/03/00 6,697,856
8,960,000 5.88 4/17/00 8,891,217
PACCAR Financial Corporation 13,000,000 5.75 3/13/00 12,975,083
7,000,000 5.77 3/27/00 6,970,829
5,000,000 5.88 5/05/00 4,946,916
Parthenon Receivables Funding LLC (b) 10,000,000 5.81 3/23/00 9,964,494
12,000,000 5.90 4/25/00 11,891,833
Peacock Funding Corporation (b) 8,500,000 5.86 4/06/00 8,450,190
8,000,000 5.93 5/22/00 7,891,942
4,320,000 5.95 5/30/00 4,255,740
Pemex Capital, Inc. 9,550,000 5.85 3/28/00 9,508,099
Repeat Offering Securitisation Entity, Inc. (b) 18,700,000 5.87 4/18/00 18,553,641
3,302,000 5.88 4/13/00 3,278,809
Scaldis Capital, Ltd./Scaldis Capital LLC (b) 25,130,000 5.90 4/17/00 24,936,429
Sigma Finance, Inc. (b) 13,050,000 5.89 4/11/00 12,962,460
3,250,000 5.90 4/25/00 3,220,705
3,000,000 5.91 5/03/00 2,968,973
3,000,000 5.92 5/25/00 2,958,067
Society Of New York Hospital Fund, Inc. 3,800,000 5.88 4/12/00 3,773,932
4,000,000 5.92 5/08/00 3,955,271
Spintab-Swedmortgage AB 20,500,000 5.86 4/25/00 20,316,468
Stellar Funding Group, Inc. (b) 3,234,000 5.85 3/24/00 3,221,913
3,000,000 5.85 3/29/00 2,986,350
5,940,000 5.85 3/30/00 5,912,008
2,609,000 5.85 3/31/00 2,596,281
2,000,000 5.90 4/10/00 1,986,889
3,825,000 6.45 3/17/00 3,814,035
Sunshine State Governmental Financing Commission 6,500,000 5.82 3/02/00 6,498,949
5,113,000 5.92 5/08/00 5,055,825
Svenska Handelsbank, Inc. 10,700,000 5.85 4/18/00 10,616,540
Swiss RE Financial Products Corporation (b) 1,000,000 5.75 3/06/00 999,201
15,000,000 5.78 3/08/00 14,983,142
7,000,000 5.90 4/27/00 6,934,608
35
<PAGE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) February 29, 2000
- --------------------------------------------------------------------------------------------------------------------------------
STRONG MONEY MARKET FUND (continued)
- --------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Fina SA (b) $ 7,400,000 5.85% 4/20/00 $ 7,339,875
Tulip Funding Corporation (b) 3,060,000 5.94 5/19/00 3,020,113
UBN, Inc. 13,000,000 5.99 5/25/00 12,816,140
USAA Capital Corporation 14,700,000 5.82 4/17/00 14,588,305
7,000,000 5.88 5/04/00 6,926,827
Unifunding, Inc. 4,190,000 5.91 5/04/00 4,145,977
Variable Funding Capital Corporation (b) 5,500,000 5.75 3/06/00 5,495,607
4,700,000 5.77 3/03/00 4,698,493
16,000,000 5.86 4/18/00 15,874,986
Victory Receivables Corporation (b) 10,941,000 5.81 3/17/00 10,912,748
4,490,000 5.82 3/27/00 4,471,127
9,368,000 5.87 4/03/00 9,317,592
Warner Lambert Company 633,600 5.50 Upon Demand 633,600
Washington Post Company (b) 12,469,000 5.76 3/06/00 12,459,025
West Baton Rouge Parish, Louisiana Industrial District Number 3 Revenue (b) 3,450,000 5.88 3/06/00 3,450,000
Whiting, Indiana Industrial Sewage and Solid Waste Disposal Revenue 12,900,000 5.79 3/07/00 12,900,000
Windmill Funding Corporation (b) 16,440,000 5.73 3/03/00 16,434,767
2,425,000 5.87 4/11/00 2,408,788
3,300,000 5.88 4/19/00 3,273,589
Wisconsin Electric Power Company 58,700 5.50 Upon Demand 58,700
Wood Street Funding Corporation (b) 6,600,000 5.78 3/02/00 6,598,940
13,210,000 5.83 3/28/00 13,152,239
Yale University 9,250,000 5.79 3/20/00 9,221,733
Yorkshire Building Society 5,000,000 5.80 3/23/00 4,982,278
8,002,000 5.91 5/19/00 7,898,221
- --------------------------------------------------------------------------------------------------------------------------------
Total Commercial Paper 1,767,463,939
- --------------------------------------------------------------------------------------------------------------------------------
Corporate Obligations 1.1%
LaSalle Bank North America, Chicago, Illinois Short-Term Bank Notes:
Tranche 00023, 6.50% 8,000,000 6.50 10/30/00 8,000,000
Tranche 00024, 6.50% 14,000,000 6.50 11/03/00 14,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Corporate Obligations 22,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Taxable Variable Rate Put Bonds 7.2%
Alabama IDA IDR - Southern Tool, Inc. Project 5,900,000 6.00 3/02/00 5,900,000
Alabama Incentives Financing Authority Special Obligation 10,000,000 6.00 3/02/00 10,000,000
Aurora, Kane & DuPage Counties, Illinois IDR 1,300,000 5.93 3/02/00 1,300,000
Botsford General Hospital Revenue 4,400,000 5.95 3/01/00 4,400,000
Chattanooga, Tennessee IDB Revenue - Radisson Read Project 3,660,000 6.59 3/02/00 3,660,000
Community Health Systems, Inc. 2,900,000 5.85 3/01/00 2,900,000
Concrete Company 2,120,000 6.00 3/02/00 2,120,000
Health Midwest Ventures Group, Inc. 7,900,000 5.95 3/01/00 7,900,000
Illinois Housing Development Revenue 14,345,000 5.99 3/01/00 14,345,000
KinderCare Learning Centers, Inc. 4,000,000 6.10 3/01/00 4,000,000
Kings Glen Apartments LLC 3,297,000 6.00 3/02/00 3,297,000
Mississippi Business Finance Corporation IDR - GE Plastics Project 2,500,000 5.87 3/01/00 2,500,000
New Jersey EDA EDR - MSNBC/CNBC 7,900,000 5.87 3/01/00 7,900,000
New Jersey Sports and Exposition Authority Sports Complex Subordinated
Refunding Revenue 21,275,000 5.99 3/01/00 21,275,000
Pointe Chase Apartments LLC 7,000,000 6.00 3/02/00 7,000,000
Radiation Oncology Partners LLP 2,780,000 6.00 3/02/00 2,780,000
Sempra Energy Employee Stock Ownership Plan and Trust 9,000,000 5.98 3/01/00 9,000,000
South Carolina Jobs - EDA Health Facilities Revenue 3,000,000 6.39 3/02/00 3,000,000
Stanislaus County, California Pension Obligations 9,335,000 5.99 3/01/00 9,335,000
T3 Holdings, Inc. (b) 10,000,000 5.88 3/01/00 10,000,000
Thayer Properties LLC 3,370,000 6.00 3/02/00 3,370,000
Tifton Mall, Inc. 3,685,000 6.00 3/02/00 3,685,000
Virginia HDA MFHR 1,980,000 5.99 3/01/00 1,980,000
WLB LLC 2,000,000 6.00 3/02/00 2,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Taxable Variable Rate Put Bonds 143,647,000
- --------------------------------------------------------------------------------------------------------------------------------
36
<PAGE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
STRONG MONEY MARKET FUND (continued)
- --------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
United States Government and Agency Issues 4.5%
Federal Home Loan Bank Bonds:
5.08%, Due 3/03/00 $18,500,000 5.08% 3/03/00 $ 18,500,000
5.10%, Due 3/08/00 18,500,000 5.10 3/08/00 18,500,000
5.14%, Due 3/08/00 18,200,000 5.14 3/08/00 18,200,000
6.75%, Due 3/15/01 (f) 35,000,000 6.75 3/15/01 35,000,000
- --------------------------------------------------------------------------------------------------------------------------------
Total United States Government and Agency Issues 90,200,000
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Total Investments in Securities 101.9% 2,037,310,718
Other Assets and Liabilities, Net (1.9%) (38,285,562)
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets 100.0% $1,999,025,156
================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
STRONG MUNICIPAL MONEY MARKET FUND
- --------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Municipal Bonds 17.7%
Alaska 0.4%
North Slope Boro, Alaska Zero% Capital Appreciation GO $10,000,000 4.37% 1/01/01 $ 9,647,710
Arizona 1.2%
USBI Trust Pass-Thru Certificates, Series 1998-C (e) 28,315,000 4.50 3/01/00 28,315,000
Arkansas 0.2%
Arkansas DFA SFMR Mortgage-Backed Securities Program (e) 5,375,000 4.30 3/01/01 5,375,000
Colorado 1.6%
Fort Collins, Colorado MFHR - Dry Creek Apartments Project (e) 4,490,000 3.85 8/01/00 4,490,000
USBI Trust Pass-Thru Certificates, Series 1998-D (e) 34,750,000 4.75 12/01/00 34,750,000
------------
39,240,000
District of Columbia 1.3%
District of Columbia 4.35% SFHR (f) 33,000,000 4.35 3/21/01 33,000,000
Florida 0.2%
Orange County, Florida 9.25% Health Facilities Authority Revenue -
Mental Health Services Project (Pre-Refunding at $102 on 7/01/00) 3,580,000 4.16 7/01/00 3,711,099
Indiana 0.4%
Penn-Harris-Madison, Indiana 4.50% School Corporation Tax 10,000,000 4.37 12/29/00 10,010,376
Anticipation Warrants
Massachusetts 1.0%
Massachusetts Industrial Finance Agency Revenue - Northeast Center for
Autism Project (Pre-Refunding at $100 on 11/01/00):
9.00% 1,910,000 4.41 11/01/00 1,967,255
9.50% 8,910,000 4.41 11/01/00 9,206,063
Massachusetts 9.00% Industrial Finance Agency Tunnel Revenue
(Pre-Refunding at $102 on 10/01/00) 13,320,000 4.51 10/01/00 13,922,573
------------
25,095,891
Minnesota 0.5%
Hopkins, Minnesota 4.50% Independent School District Number 270 Tax
Anticipation Certificates 4,500,000 4.30 3/22/01 4,509,126
Minnesota Housing Finance Agency SFHR (e) 5,000,000 3.65 6/29/00 5,000,763
USBI Trust Pass-Thru Certificates, Series 1999-G (e) 4,000,000 4.88 5/01/00 4,000,000
------------
13,509,889
New Jersey 1.3%
Hudson County, New Jersey COP Trusts (e) 11,625,000 3.95 3/01/00 11,625,000
Passaic County, New Jersey 3.30% BAN 20,643,500 3.25 3/31/00 20,644,314
------------
32,269,314
New Mexico 0.2%
Bernalillo County, New Mexico MFHR - Valencia Retirement Apartments
Project (e) 6,000,000 4.20 12/01/00 6,000,000
New York 2.2%
Nassau County, New York 4.25% BAN - Bank Purchase Agreement 6,750,000 3.60 5/16/00 6,759,166
Nassau County, New York 3.75% RAN 30,000,000 3.31 3/15/00 30,005,351
37
<PAGE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) February 29, 2000
- --------------------------------------------------------------------------------------------------------------------------------
STRONG MUNICIPAL MONEY MARKET FUND (continued)
- --------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Poughkeepsie, New York Industrial Development Agency Senior Living
Facilities Revenue - The Manor at Woodside Project (e) $17,250,000 5.37% 4/20/00 $ 17,250,000
------------
54,014,517
Ohio 1.5%
American Municipal Power-Ohio, Inc. Electric System Revenue
Improvement 3.35% BAN 7,665,000 3.35 3/16/00 7,665,000
Franklin, Ohio MFHR - 260 East Naghten Street Project (e) 6,250,000 3.85 8/01/00 6,250,000
Licking County, Ohio MFHR - Sharon Glyn II Apartments Project (e) 3,500,000 4.05 10/01/00 3,500,000
Ohio 4.25% Housing Finance Agency Mortgage Revenue 20,000,000 4.25 3/01/01 20,000,000
------------
37,415,000
South Dakota 0.3%
South Dakota 3.20% HDA Homeownership Mortgage Revenue 8,000,000 3.20 4/07/00 8,000,000
Texas 3.0%
Greater East Texas Higher Education Authority, Inc. Student Loan Revenue (e) 7,000,000 4.22 2/01/01 7,000,000
Greater Texas Student Loan Corporation Student Loan Revenue (e) 3,300,000 4.22 2/01/01 3,300,000
10,000,000 4.25 2/01/01 10,000,000
Greater Texas Student Loan Corporation Student Loan Revenue Refunding (e) 8,000,000 4.28 3/01/01 8,000,000
Lower Colorado River Authority Revenue (e) 7,240,000 4.00 11/09/00 7,240,000
Matagorda County, Texas 7.50% Navigation District Number 1 PCR -
Central Power & Light Company Project (Pre-Refunding at $102 on 3/01/00) 8,000,000 4.00 3/01/00 8,160,000
Texas 4.50% TRAN 30,000,000 3.71 8/31/00 30,115,967
------------
73,815,967
Wisconsin 0.6%
Menasha, Wisconsin 3.55% Promissory Notes (e) 4,260,000 3.50 4/30/00 4,260,335
Milwaukee, Wisconsin Redevelopment Authority Redevelopment Revenue -
Dynapro Thin Film Products Project 3,500,000 4.50 6/21/00 3,500,000
Mount Horeb, Wisconsin 4.78% Area School District BAN 6,080,000 4.77 10/02/00 6,080,400
------------
13,840,735
Multiple States 1.8%
Puttable Floating Option Tax-Exempt Receipts, Series PPT-7 (e) 17,360,000 4.50 1/25/01 17,360,000
USBI Trust Pass-Thru Certificates, Series 1999-E (e) 26,710,000 4.50 3/01/00 26,710,000
------------
44,070,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds 437,330,498
- --------------------------------------------------------------------------------------------------------------------------------
Municipal Commercial Paper 4.8%
Arizona 1.0%
Arizona Industrial Commission Special Fund Tax-Exempt COP Refunding 500,000 5.75 3/01/00 500,000
9,800,000 5.75 3/08/00 9,800,000
Maricopa County, Arizona IDA IDR - Citizens Utilities Company Project 4,000,000 4.10 4/06/00 4,000,000
Mohave County, Arizona IDA IDR - Citizens Utilities Company Project 3,500,000 4.10 4/06/00 3,500,000
Santa Cruz County, Arizona IDA IDR 7,680,000 4.05 4/06/00 7,680,000
------------
25,480,000
Arkansas 0.2%
Hope, Arkansas Solid Waste Disposal Revenue - Temple-Inland Forest
Products Corporation Project 4,000,000 4.40 4/13/00 4,000,000
Georgia 0.8%
Georgia Municipal Gas Authority Gas Revenue - Southern Portfolio I Project 15,890,000 5.50 3/08/00 15,890,000
McDuffie County, Georgia Development Authority Waste Disposal Revenue -
Temple-Inland Forest Products Corporation Project 3,100,000 4.40 4/13/00 3,100,000
------------
18,990,000
Hawaii 0.7%
Hawaii Department of Budget and Finance Special Purpose Mortgage Revenue -
Citizens Utilities Company Project:
Series A 7,000,000 4.15 4/06/00 7,000,000
Series C 10,000,000 4.15 4/06/00 10,000,000
------------
17,000,000
Texas 2.1%
Angelina and Neches River Authority PCR Refunding - Temple-Inland
Forest Products Corporation Project 2,600,000 4.40 4/13/00 2,600,000
Angelina and Neches River Authority Solid Waste Disposal
Revenue - Temple Eastex, Inc. Project 9,550,000 4.40 4/13/00 9,550,000
4,000,000 4.50 4/13/00 4,000,000
Harris County, Texas Health Facilities Development Corporation
Hospital Revenue - Memorial Hospital System Project 10,000,000 3.70 3/01/00 10,000,000
38
<PAGE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
STRONG MUNICIPAL MONEY MARKET FUND (continued)
- --------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Houston, Texas Water & Sewer Systems Revenue $10,000,000 4.05% 4/05/00 $ 10,000,000
Texas Port Development Corporation Marine Terminal Refunding
Revenue - Mitsui & Company USA, Inc. Project 15,100,000 5.75 3/08/00 15,100,000
------------
51,250,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Municipal Commercial Paper 116,720,000
- --------------------------------------------------------------------------------------------------------------------------------
Annual Variable Rate Put Bonds 3.3%
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 4.35 9/01/00 2,900,000
11,300,000
District of Columbia 0.4%
District of Columbia Supplemental Student Loan Revenue - The Consern
Loan Program 9,300,000 4.75 7/01/00 9,300,000
Louisiana 0.4%
Plaquemines, Louisiana Port Harbor and Terminal District Port Facilities
Revenue - Chevron Pipe Line Company Project 11,250,000 4.03 9/01/00 11,220,986
Maine 0.1%
Jay, Maine Solid Waste Disposal Revenue - International Paper Company
Project 3,575,000 4.35 9/01/00 3,575,000
Mississippi 0.1%
Jones County, Mississippi Solid Waste Disposal Revenue - International
Paper Company Project 2,900,000 4.35 9/01/00 2,900,000
Puerto Rico 0.5%
Puerto Rico Industrial, Medical and Environmental PCFA Revenue -
Union Carbide Corporation Project 12,955,000 4.00 3/15/00 12,955,000
Tennessee 0.3%
Brownsville, Tennessee IDB IDR - Dynametal Technologies, Inc. Project 6,925,000 3.90 6/01/00 6,925,000
Texas 0.8%
Brazos River Authority Collateralized PCR Refunding - Texas Utilities
Electric Company Project:
Series A 13,000,000 3.70 4/01/00 13,000,000
Series B 7,000,000 4.15 6/19/00 7,000,000
------------
20,000,000
Multiple States 0.2%
Eastern States Tax-Exempt Mortgage Bond Trust (e) 4,415,000 5.19 3/01/00 4,415,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Annual Variable Rate Put Bonds 82,590,986
- --------------------------------------------------------------------------------------------------------------------------------
Semi-Annual Variable Rate Put Bonds 0.6%
Kentucky 0.3%
Scottsville, Kentucky IDR - Sumitomo Electric Wiring Systems, Inc. Project 8,000,000 5.15 5/01/00 8,000,000
Tennessee 0.3%
Marion County, Tennessee Environmental IDB EDR - Variform, Inc. Project 7,000,000 4.35 8/01/00 7,000,000
Wisconsin 0.0%
Milwaukee, Wisconsin IDR - Wayne C. Oldenburg Project 510,000 4.65 8/01/00 510,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Semi-Annual Variable Rate Put Bonds 15,510,000
- --------------------------------------------------------------------------------------------------------------------------------
Quarterly Variable Rate Put Bonds 0.1%
Minnesota
Minneapolis, Minnesota Revenue - Minneapolis Institute of the Arts Project 2,675,000 3.85 3/31/00 2,675,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Quarterly Variable Rate Put Bonds 2,675,000
- --------------------------------------------------------------------------------------------------------------------------------
Monthly Variable Rate Put Bonds 0.7%
Illinois 0.1%
Green Leaf Ventures, Inc. Tax-Exempt Bond Grantor Trust 2,000,000 4.35 4/01/00 2,000,000
Maryland 0.2%
Prince George's County, Maryland EDR Refunding - Capital View II LP Facility 6,380,000 4.40 4/01/00 6,380,000
Ohio 0.1%
Blue Bell Tax-Exempt Bond Grantor Trust 1,621,892 4.30 4/01/00 1,621,892
Multiple States 0.3%
GAF Corporation Tax-Exempt Bond Grantor Trust 4,300,000 3.90 4/01/00 4,300,000
</TABLE>
39
<PAGE>
<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) February 29, 2000
- ------------------------------------------------------------------------------------------------------------------------------------
Strong Municipal Money Market Fund (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Johnson Controls, Inc. Tax-Exempt Bond Grantor Trust $ 2,345,000 4.25% 4/01/00 $ 2,345,000
------------
6,645,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Monthly Variable Rate Put Bonds 16,646,892
- --------------------------------------------------------------------------------------------------------------------------------
WEEKLY VARIABLE RATE PUT BONDS 61.7%
ALABAMA 2.8%
Alabama HFA SFMR:
Series A-1 5,915,000 4.15 3/08/00 5,915,000
Series A-2 19,505,000 4.15 3/08/00 19,505,000
Alabama IDA IDR:
Research Genetics, Inc. Project 2,625,000 4.20 3/08/00 2,625,000
Whitesell Project 4,300,000 4.15 3/08/00 4,300,000
Athens, Alabama IDB Revenue - Coilplus-Alabama, Inc. Project 8,000,000 4.20 3/08/00 8,000,000
Bridgeport, Alabama IDB IDR - Beaulieu Nylon, Inc. Project 10,000,000 4.30 3/08/00 10,000,000
Montgomery, Alabama Downtown Redevelopment Authority Revenue -
Southern Poverty Law Project 15,000,000 4.60 3/08/00 15,000,000
Montgomery, Alabama IDB IDR - Asphalt Contractors, Inc. Project 1,100,000 4.20 3/08/00 1,100,000
Pell, Alabama IDB IDR - Kinder/Gorbel Project 1,585,000 4.25 3/08/00 1,585,000
------------
68,030,000
ARIZONA 0.9%
Chandler, Arizona IDA MFHR - Greentree Place Apartments Project 6,218,000 6.13 3/08/00 6,218,000
Mohave County, Arizona IDA IDR - Citizens Utilities Company Project 2,090,000 4.05 3/08/00 2,090,000
Navajo County, Arizona IDA IDR - Citizens Utilities Company Project 5,120,000 4.05 3/08/00 5,120,000
8,280,000 3.90 3/08/00 8,280,000
------------
21,708,000
ARKANSAS 0.1%
Hope, Arkansas IDR - Champion Parts, Inc. Project 800,000 4.20 3/08/00 800,000
Trumann, Arkansas IDR - Roach Manufacturing Corporation Project 2,000,000 4.15 3/08/00 2,000,000
------------
2,800,000
CALIFORNIA 0.7%
Glenn, California IDA IDR - Land O' Lakes, Inc. Project 1,900,000 4.15 3/08/00 1,900,000
Los Angeles, California Community Redevelopment Agency MFHR - Skyline at
Southpark Project 4,400,000 5.55 3/08/00 4,400,000
Los Angeles County, California IDA IDR - Goldberg & Solovy Foods, Inc. Project 2,725,000 5.25 3/08/00 2,725,000
Ontario, California IDA IDR - P & S Development Project 2,650,000 4.80 3/08/00 2,650,000
Oxnard, California IDA IDR - O.G. Dehydrated, Inc. Project 3,050,000 4.26 3/08/00 3,050,000
San Bernardino County, California COP - 1992 Justice Center/Airport
Improvements Refunding Project 1,960,000 4.40 3/08/00 1,960,000
------------
16,685,000
COLORADO 0.6%
Aurora, Colorado IDR - Optima Batteries, Inc. Project 3,430,000 4.15 3/08/00 3,430,000
Colorado HFA EDR - NTA Leasing Company Project 1,975,000 4.30 3/08/00 1,975,000
Jefferson County, Colorado IDR - Accutronics, Inc. Project 1,775,000 4.40 3/08/00 1,775,000
Lakewood, Colorado Jefferson County IDR - Verden Associates - Holiday
Inn Project 2,800,000 4.50 3/08/00 2,800,000
Westminster, Colorado IDR - Lifecare International Project 4,240,000 4.30 3/08/00 4,240,000
------------
14,220,000
FLORIDA 4.0%
Bay County, Florida Revenue - Methodist Homes Project 3,635,000 4.15 3/08/00 3,635,000
Brevard County, Florida IDR - US Space Camp Foundation Project 3,540,000 4.15 3/08/00 3,540,000
Broward County, Florida HFA MFHR - Sawgrass Pines Apartments Project 12,000,000 4.60 3/08/00 12,000,000
Capital Trust Agency MFHR 35,000,000 4.04 3/08/00 35,000,000
Dade County, Florida Health Facilities Authority Hospital Revenue -
Miami Children's Hospital Project 19,200,000 4.15 3/08/00 19,200,000
Dade County, Florida IDA IDR - Engelhard/ICC Project 8,500,000 4.50 3/08/00 8,500,000
Ithaka Partners II Trust Certificates 4,102,032 4.40 3/08/00 4,102,032
Jacksonville, Florida Hospital Revenue - University Medical Center, Inc.
Project 13,200,000 5.35 3/08/00 13,200,000
------------
99,177,032
GEORGIA 8.1%
Athens-Clarke County, Georgia IDA IDR - Nakanishi Manufacturing Corporation
Project 8,000,000 4.48 3/08/00 8,000,000
Bremen, Georgia Development Authority IDR - HL-A Company, Inc. Project 9,000,000 4.75 3/08/00 9,000,000
Bulloch County, Georgia Development Authority Solid Waste Disposal
Revenue - Apogee Enterprises, Inc. Project 5,400,000 4.05 3/08/00 5,400,000
Cherokee County, Georgia IDA Revenue - Piolax Corporation Project 7,000,000 4.95 3/08/00 7,000,000
Fulton County, Georgia IDA Revenue - STO Corporation Project 3,000,000 4.00 3/08/00 3,000,000
</TABLE>
40
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<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Strong Municipal Money Market Fund (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Georgia Municipal Gas Authority Gas Revenue - Agency Project:
Series A $51,800,000 5.15% 3/08/00 $ 51,798,446
Series B 13,500,000 5.15 3/08/00 13,500,000
Series C 24,990,000 5.15 3/08/00 24,990,000
Georgia Municipal Gas Authority Gas Revenue - Gas Portfolio II Project 58,500,000 5.15 3/08/00 58,498,642
Newton County, Georgia IDA IDR - Komatsu Forklift USA, Inc. Project 7,500,000 5.40 3/08/00 7,500,000
Rockdale County, Georgia Development Authority IDR - Liochem, Inc. Project 8,000,000 5.35 3/08/00 8,000,000
Savannah, Georgia EDA IDR - Savannah Steel & Metal Company Project 1,290,000 4.20 3/08/00 1,290,000
Whitfield County, Georgia Development Authority Solid Waste Disposal Revenue -
Aladdin Manufacturing Corporation Project 3,100,000 4.05 3/08/00 3,100,000
------------
201,077,088
HAWAII 2.0%
Hawaii HFA HDC Rental Housing System Revenue 19,900,000 4.65 3/08/00 19,900,000
Hawaii HFA HDC SFMR Trust Receipts 28,655,000 4.05 3/08/00 28,655,000
------------
48,555,000
IDAHO 0.2%
Bonneville County, Idaho IDC IDR - Yellowstone Plastics Project 5,900,000 4.10 3/08/00 5,900,000
ILLINOIS 2.9%
Arlington Heights, Illinois MFHR Refunding - Dunton Tower Apartments Project 7,050,000 4.80 3/08/00 7,050,000
Carol Stream, Illinois IDR - MI Enterprises Project 2,250,000 4.15 3/08/00 2,250,000
Hazel Crest, Illinois Retirement Center Revenue - Waterford Estates Project 3,530,000 5.10 3/08/00 3,530,000
Illinois DFA IDR:
Homak Manufacturing Company, Inc. Project 5,640,000 4.15 3/08/00 5,640,000
Icon Metalcraft, Inc. Project 2,410,000 4.15 3/08/00 2,410,000
MTI Project 4,000,000 5.35 3/08/00 4,000,000
THK America, Inc. Project 3,700,000 5.85 3/08/00 3,700,000
Lakemoor, Illinois MFHR - Lakemoor Apartments Project:
Series A 4,595,486 4.20 3/08/00 4,595,486
Series C 25,000,000 4.20 3/08/00 25,000,000
Phoenix Realty Special Account Illinois MFHR - Brightons Mark Project 8,075,000 4.27 3/08/00 8,075,000
Springfield, Illinois Airport Authority Revenue - Allied-Signal, Inc. Project 4,375,000 4.35 3/08/00 4,375,000
Woodridge, Illinois Industrial Revenue - McDavid Knee Guard Project 1,955,000 4.25 3/08/00 1,955,000
------------
72,580,486
INDIANA 0.3%
Ashley, Indiana EDR - Trin, Inc. Project 4,000,000 4.75 3/08/00 4,000,000
Brownsburg, Indiana EDR - Zanetis Enterprises Project 3,000,000 4.20 3/08/00 3,000,000
------------
7,000,000
IOWA 0.5%
Cedar Rapids, Iowa IDR Refunding First Program - Columbus McKinnon
Corporation Project 615,000 4.50 3/08/00 615,000
Indianola, Iowa Health Care Facility Revenue Refunding - The Village Project 5,490,000 4.15 3/08/00 5,490,000
Iowa Finance Authority IDR:
Dixie Bedding Company Project 3,000,000 4.30 3/08/00 3,000,000
First Cooperative Association Project 3,325,000 4.10 3/08/00 3,325,000
------------
12,430,000
KANSAS 0.4%
Kansas DFA MFHR - Trails of Garden City and Cottonwood of Liberal Projects 4,740,000 4.20 3/08/00 4,740,000
Lawrence, Kansas IDR - ProSoCo Project 5,540,000 4.20 3/08/00 5,540,000
------------
10,280,000
KENTUCKY 1.0%
Daviess County, Kentucky MFHR Refunding - Park Regency Apartments Project 4,155,000 4.15 3/08/00 4,155,000
Hancock County, Kentucky Solid Waste Disposal Revenue - NSA, Ltd. Project 7,815,000 4.15 3/08/00 7,815,000
Russellville, Kentucky Industrial Building Revenue - JS Technos
Corporation Project 2,800,000 5.85 3/08/00 2,800,000
Somerset, Kentucky IBR - Tibbals Flooring Company Project 10,000,000 4.20 3/08/00 10,000,000
------------
24,770,000
LOUISIANA 0.1%
Caddo-Bossier Parishes, Louisiana Port Commission Revenue - Shreveport
Fabricators Project 1,500,000 4.80 3/08/00 1,500,000
MARYLAND 0.9%
Howard County, Maryland MFHR 10,737,000 4.26 3/08/00 10,737,000
Maryland Economic Development Corporation IDR - Lenmar, Inc. Project 5,900,000 4.11 3/08/00 5,900,000
Washington County, Maryland EDR - Tandy Project 5,100,000 4.80 3/08/00 5,100,000
------------
21,737,000
MASSACHUSETTS 0.4%
Massachusetts Industrial Finance Agency IDR - Portland Causeway Realty Trust 2,600,000 4.30 3/08/00 2,600,000
</TABLE>
41
<PAGE>
<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) February 29, 2000
- ------------------------------------------------------------------------------------------------------------------------------------
Strong Municipal Money Market Fund (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Salem, Massachusetts IDFA IDR - Applied Extrusion
Technologies, Inc. Project $ 6,500,000 4.30% 3/08/00 $ 6,500,000
------------
9,100,000
MICHIGAN 0.7%
Lansing, Michigan Limited Obligation EDC IDR - Ashland Oil, Inc. Project 1,400,000 5.60 3/08/00 1,400,000
Michigan Job Development Authority PCR - Mazda Motor Manufacturing
USA Corporation Project 11,200,000 5.35 3/08/00 11,200,000
Michigan Strategic Fund, Ltd. Obligation Revenue Refunding - Alpha
Technology Corporation Project 5,000,000 4.75 3/08/00 5,000,000
------------
17,600,000
MINNESOTA 1.3%
Burnsville, Minnesota Housing Revenue - Provence LLC Project 12,650,000 4.55 3/08/00 12,650,000
Farmington, Minnesota IDR - WFW Ventures LLC Project 1,890,000 4.19 3/08/00 1,890,000
New Brighton, Minnesota IDR - Donatelle Holdings Project 3,100,000 4.30 3/08/00 3,100,000
Osseo, Minnesota Independent School District Number 279 Trust Certificates 6,390,000 4.15 3/08/00 6,390,000
Princeton, Minnesota IDR - Plastic Products Company, Inc. Project 1,000,000 4.30 3/08/00 1,000,000
St. Louis Park, Minnesota Health Care Facilities Revenue Trust Certificates 7,000,000 4.15 3/08/00 7,000,000
------------
32,030,000
MISSISSIPPI 0.4%
Mississippi Business Finance Corporation IDR:
American Metal Sales, Inc. Project 3,700,000 4.60 3/08/00 3,700,000
Barclay Furniture Company Project 1,300,000 4.25 3/08/00 1,300,000
Polks Meat Products, Inc. Project 4,300,000 4.60 3/08/00 4,300,000
------------
9,300,000
MISSOURI 2.1%
Berkeley, Missouri IDA Exempt Facility Revenue - St. Louis Air Cargo
Services, Inc. Project 12,500,000 5.25 3/08/00 12,500,000
Kansas City, Missouri IDA Facilities Revenue - KC Air Cargo Service Project 7,000,000 5.25 3/08/00 7,000,000
Missouri Development Finance Board IDR - MFA, Inc. Project:
Series A 1,990,000 4.10 3/08/00 1,990,000
Series B 765,000 4.10 3/08/00 765,000
Missouri Development Finance Board Lease Revenue - Missouri
Association of Municipal Utilities Lease Project 10,200,000 3.95 3/08/00 10,200,000
Missouri Economic Development Export and Infrastructure Board IDR:
Series A 2,025,000 4.30 3/08/00 2,025,000
Series D 2,395,000 4.30 3/08/00 2,395,000
St. Charles County, Missouri IDA IDR - Craftsmen Industries Project 6,195,000 4.22 3/08/00 6,195,000
St. Joseph, Missouri IDA IDR - Albaugh, Inc. Project 2,000,000 4.27 3/08/00 2,000,000
Washington, Missouri IDA IDR - Clemco Industries Project 5,000,000 4.22 3/08/00 5,000,000
West Plains, Missouri IDA IDR - West Plains Manor Project 2,200,000 4.00 3/08/00 2,200,000
------------
52,270,000
NEBRASKA 0.3%
Buffalo County, Nebraska IDR - Agrex, Inc. Project 2,510,000 4.15 3/08/00 2,510,000
Nuckolls County, Nebraska IDR - Agrex, Inc. Project 5,100,000 4.15 3/08/00 5,100,000
------------
7,610,000
NEVADA 0.7%
Henderson Nevada Public Improvement Trust MFHR Refunding - Pueblo II Project 11,500,000 3.95 3/08/00 11,500,000
Nevada Department of Commerce IDR - Master-Halco, Inc. Project 4,600,000 5.15 3/08/00 4,600,000
------------
16,100,000
NEW HAMPSHIRE 0.2%
New Hampshire IDA Industrial Facility Revenue - Ferrofluidics
Corporation - 1984 Nashua Series Project 5,000,000 4.60 3/08/00 5,000,000
NEW JERSEY 0.2%
New Jersey EDA EDR - Epitaxx, Inc. Project 5,000,000 5.35 3/08/00 5,000,000
NEW MEXICO 0.5%
Bernalillo County, New Mexico MFHR - Westwood Villas Project 13,360,000 4.85 3/08/00 13,360,000
NEW YORK 0.6%
Islip, New York IDA IDR - Radiation Dynamics Project 6,000,000 5.35 3/08/00 6,000,000
New York Dormitory Authority Revenue 9,945,000 4.12 3/08/00 9,945,000
------------
15,945,000
NORTH CAROLINA 1.3%
Alleghany County, North Carolina Industrial Facilities and PCFA IDR -
Spring - Ford Knitting Company, Inc. Project 1,750,000 4.10 3/08/00 1,750,000
</TABLE>
42
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<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Strong Municipal Money Market Fund (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Buncombe County, North Carolina Industrial Facilities and PCFA
Revenue - Rich Mount, Inc. Project $ 4,035,000 5.40% 3/08/00 $ 4,035,000
Craven County, North Carolina Industrial Facilities and PCFA IDR -
Wheatstone Corporation Project 3,800,000 4.20 3/08/00 3,800,000
Gaston County, North Carolina Industrial Facilities and PCFA IDR -
Spring-Ford Knitting Company, Inc. Project 3,330,000 4.10 3/08/00 3,330,000
Hoke County, North Carolina Industrial Facilities and PCFA IDR -
Triangle Building Supply, Inc. Project 2,250,000 4.20 3/08/00 2,250,000
Mecklenburg County, North Carolina Industrial Facilities and PCFA
Industrial Revenue - Murata Wiedemann, Inc. Project 5,300,000 5.40 3/08/00 5,300,000
North Carolina Agricultural Finance Authority Agricultural
Development Revenue - J.E. Jones Lumber Company Project 1,600,000 4.10 3/08/00 1,600,000
North Carolina Ports Authority Exempt Facility Revenue -
Jordan Lumber & Supply, Inc. Project 4,285,000 4.20 3/08/00 4,285,000
Rutherford County, North Carolina Industrial Facilities and PCFA
IDR - Spring-Ford Industries, Inc. Project 5,320,000 4.10 3/08/00 5,320,000
------------
31,670,000
NORTH DAKOTA 0.1%
Traill County, North Dakota Solid Waste Disposal Revenue -
American Crystal Sugar Company Project 3,580,000 4.25 3/08/00 3,580,000
OHIO 0.5%
Cuyahoga County, Ohio IDR - Edge Seal Technologies, Inc.
and One Industry Drive, Inc. Project 2,240,000 4.15 3/08/00 2,240,000
Gallia County, Ohio IDR - Harsco Corporation Project 3,500,000 4.20 3/08/00 3,500,000
Ohio Housing Finance Agency MFHR - Hunters Glen Apartments Project 5,370,000 4.20 3/08/00 5,370,000
------------
11,110,000
OKLAHOMA 0.9%
Broken Arrow, Oklahoma EDA IDR - Paragon Films, Inc. Project 7,030,000 4.23 3/08/00 7,030,000
Oklahoma City, Oklahoma Industrial and Cultural Facilities
Trust Revenue - Oklahoma City University Project 8,500,000 5.35 3/08/00 8,500,000
Oklahoma HFA SFHR Trusts 7,535,000 4.15 3/08/00 7,535,000
------------
23,065,000
OREGON 0.3%
Portland, Oregon Housing Authority MFHR 7,340,000 4.36 3/08/00 7,340,000
PENNSYLVANIA 1.9%
Allegheny County, Pennsylvania Hospital Development
Authority Revenue - Allegheny General Hospital Project 38,400,000 4.75 3/08/00 38,400,000
Pennsylvania Higher EFA College & University Revenue 7,495,000 4.21 3/08/00 7,495,000
------------
45,895,000
SOUTH CAROLINA 2.7%
Charleston County, South Carolina Industrial Revenue - Tandy
Corporation Project 1,000,000 5.25 3/08/00 1,000,000
Fairfield County, South Carolina Industrial Revenue - Fuji Copian
Corporation Project 9,000,000 5.40 3/08/00 9,000,000
Richland County, South Carolina IDR - Ashland Oil Project 1,400,000 5.60 3/08/00 1,400,000
South Carolina Jobs EDA EDR:
Carolina Cotton Works, Inc. Project 3,000,000 4.05 3/08/00 3,000,000
Glo-Tex Chemicals, Inc. Project 2,550,000 4.20 3/08/00 2,550,000
South Carolina Jobs EDA IDR:
Quoizel, Inc. Project 7,375,000 4.10 3/08/00 7,375,000
Roller Bearing Company of America, Inc. Project 5,000,000 4.77 3/08/00 5,000,000
South Carolina Jobs EDA Revenue 36,995,000 4.11 3/08/00 36,995,000
------------
66,320,000
SOUTH DAKOTA 0.6%
Aberdeen, South Dakota IDR - Lomar Development Company Project 75,000 4.65 3/08/00 75,000
Brookings, South Dakota IDR - Lomar Development Company Project 2,040,000 4.65 3/08/00 2,040,000
South Dakota HDA Homeownership Mortgage Revenue 1,000,000 4.10 3/08/00 1,000,000
South Dakota HDA Housing Development Revenue 10,055,000 4.35 3/08/00 10,055,000
South Dakota HDA SFMR Draw Down Trust Indenture 1,000,000 5.05 3/08/00 1,000,000
------------
14,170,000
TENNESSEE 1.8%
Carter County, Tennessee IDB MFHR Refunding - Willow Run Apartments Project 6,675,000 4.15 3/08/00 6,675,000
Cumberland County, Tennessee IDB Exempt Facilities Revenue -
Fairfield Glade Community Club Project 7,000,000 4.21 3/08/00 7,000,000
Dover, Tennessee IDB Revenue - Nashville Wire Products
Manufacturing Company Project 2,900,000 4.21 3/08/00 2,900,000
</TABLE>
43
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<TABLE>
<CAPTION>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) February 29, 2000
- ------------------------------------------------------------------------------------------------------------------------------------
Strong Municipal Money Market Fund (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hamilton County, Tennessee IDB IDR:
Hamilton Plastics, Inc. Project $ 3,450,000 4.21% 3/08/00 $ 3,450,000
Komatsu America Manufacturing Corporation Project 5,400,000 4.50 3/08/00 5,400,000
Jackson, Tennessee Health, Educational and Housing Facility Board MFHR -
Park Ridge Apartments Project 5,000,000 4.60 3/08/00 5,000,000
Knox County, Tennessee Health, Educational and Housing Facilities Board Revenue -
Holston Long Term Care Project 4,000,000 4.10 3/08/00 4,000,000
Montgomery County, Tennessee IDB IDR - Nashville Wire Products Project 4,000,000 4.21 3/08/00 4,000,000
Nashville and Davidson County, Tennessee Metropolitan
Government IDB MFHR Refunding - Graybrook Apartments Project 5,900,000 4.00 3/08/00 5,900,000
------------
44,325,000
TEXAS 3.2%
Austin County, Texas IDC IDR - Gulf States Toyota, Inc. Project 3,750,000 4.50 3/08/00 3,750,000
Bexar County, Texas HFC MFHR - UTSA Apartments Project 3,700,000 4.67 3/08/00 3,700,000
Deer Park, Texas Port Development Corporation IDR - Ashland Oil, Inc. Project 4,700,000 5.60 3/08/00 4,700,000
Harris County, Texas Health Facilities Development Corporation Revenue Trusts 16,485,000 4.10 3/08/00 16,485,000
Harris County, Texas IDC IDR - National Bedding Company Project 3,000,000 4.20 3/08/00 3,000,000
Matagorda County, Texas Navigation District Number 1 PCR 6,695,000 4.21 3/08/00 6,695,000
Montgomery County, Texas IDC IDR - Porous Media, Ltd. Project 3,200,000 4.40 3/08/00 3,200,000
Robstown, Texas IDC IDR - Concrete Pipe and Products Company, Inc. Project 2,000,000 4.15 3/08/00 2,000,000
Southeast Texas HFC MFHR 10,920,000 4.36 3/08/00 10,920,000
USBI Trust Pass-Thru Certificates 10,870,000 5.25 3/08/00 10,870,000
Waco, Texas IDC IDR - Chad A. Greif Trust Project 6,600,000 4.21 3/08/00 6,600,000
Waxahachie, Texas IDA Waste Disposal Revenue - Temple/Re-Con, Inc. Project 8,200,000 4.15 3/08/00 8,200,000
------------
80,120,000
VIRGINIA 0.4%
Chesapeake, Virginia Redevelopment and Housing Authority MFHR - Tidewater
House LP Project 3,131,000 4.20 3/08/00 3,131,000
Clarke County, Virginia IDA Hospital Facilities Revenue - Winchester
Medical Center, Inc. Project 5,900,000 3.90 3/08/00 5,900,000
------------
9,031,000
WASHINGTON 0.0%
Pierce County, Washington EDC Revenue - Brown & Haley Project 1,200,000 5.15 3/08/00 1,200,000
WEST VIRGINIA 1.7%
West Virginia State Hospital Finance Authority Hospital Revenue 41,895,000 4.11 3/08/00 41,895,000
WISCONSIN 1.2%
Appleton, Wisconsin IDR:
Graphic Communications Project 2,100,000 4.10 3/08/00 2,100,000
Great Northern Corporation Project 1,500,000 4.10 3/08/00 1,500,000
Ashwaubenon, Wisconsin IDR - Pioneer Metal Finishing, Inc. Project 1,615,000 4.55 3/08/00 1,615,000
Columbus, Wisconsin IDR - Maysteel Corporation Project 2,000,000 4.20 3/08/00 2,000,000
Combined Locks, Wisconsin IDR - Appleton Papers, Inc. Project 4,300,000 4.15 3/08/00 4,300,000
De Pere, Wisconsin IDR - Cleaning Systems, Inc. Project 3,625,000 4.25 3/08/00 3,625,000
Fremont, Wisconsin IDR - Wohlt Cheese Corporation Project 2,800,000 4.10 3/08/00 2,800,000
Milwaukee, Wisconsin Redevelopment Authority Development
Revenue Refunding - Helwig Carbon Products Project 3,500,000 4.00 3/08/00 3,500,000
New London, Wisconsin IDR - Steel King Industries, Inc. Project 2,850,000 4.30 3/08/00 2,850,000
West Bend, Wisconsin IDR - Bestech Tool Corporation Project 1,600,000 4.10 3/08/00 1,600,000
Wisconsin HDA and EDA Business Development Revenue Refunding - Zero
Zone, Inc. Project 3,420,000 4.10 3/08/00 3,420,000
------------
29,310,000
WYOMING 0.2%
Campbell County, Wyoming IDR - Powder Basin Properties Project 5,830,000 4.25 3/08/00 5,830,000
MULTIPLE STATES 12.0%
Capital Realty Investments Tax-Exempt Fund, Ltd. Floating Rate Certificates:
Series 1996-4 38,770,000 4.22 3/08/00 38,770,000
Series 1996-5 27,135,000 4.17 3/08/00 27,135,000
Clipper Tax-Exempt Certificate Trusts 72,320,000 4.21 3/08/00 72,320,000
Clipper Tax-Exempt Trust COP 55,615,000 4.21 3/08/00 55,615,000
Macon Trust Pooled Certificates 70,392,450 4.27 3/08/00 70,392,450
Pitney Bowes Credit Corporation Leasetops Trusts 5,175,314 4.27 3/08/00 5,175,314
Puttable Floating Option Tax-Exempt Receipts, Series PA 154 27,169,000 4.26 3/08/00 27,169,000
------------
296,576,764
- --------------------------------------------------------------------------------------------------------------------------------
Total Weekly Variable Rate Put Bonds 1,523,202,370
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
44
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
STRONG MUNICIPAL MONEY MARKET FUND (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
DAILY VARIABLE RATE PUT BONDS 12.4%
COLORADO 0.3%
Arapahoe County, Colorado MFHR Refunding - Stratford Station Project $ 8,455,000 4.25% 3/01/00 $ 8,455,000
DISTRICT OF COLUMBIA 5.8%
District of Columbia Revenue - Medlantic Project:
Series B 74,600,000 4.95 3/01/00 74,600,000
Series C 69,200,000 4.95 3/01/00 69,200,000
-------------
143,800,000
IOWA 0.4%
Iowa Finance Authority Solid Waste Disposal Revenue -
Cedar River Paper Company Project 9,000,000 3.95 3/01/00 9,000,000
LOUISIANA 1.0%
Ascension Parish, Louisiana Revenue - BASF Corporation Project 13,000,000 3.95 3/01/00 13,000,000
Iberville Parish, Louisiana Revenue Refunding - Dow Chemical
Company Project 7,000,000 4.00 3/01/00 7,000,000
St. Charles Parish, Louisiana PCR - Shell Oil Company Project 4,100,000 3.90 3/01/00 4,100,000
-------------
24,100,000
MICHIGAN 0.6%
Midland County, Michigan EDC Economic Development Obligation Revenue -
The Dow Chemical Company Project 15,200,000 3.90 3/01/00 15,200,000
MISSISSIPPI 1.0%
Mississippi Business Finance Corporation Solid Waste Disposal
Revenue - Mississippi Power Company Project 10,600,000 3.90 3/01/00 10,600,000
Mississippi Business Finance Corporation Solid Waste Disposal
Revenue Refunding - Mississippi Power Company Project 13,520,000 3.90 3/01/00 13,520,000
-------------
24,120,000
NEW YORK 0.6%
New York, New York Industrial Development Agency IDR -
Nippon Cargo Airlines Company, Ltd. Project 14,900,000 4.90 3/01/00 14,900,000
TEXAS 0.9%
Brazoria County, Texas Brazos River Harbor Navigation District
Environmental Revenue - Joint Venture Project 2,300,000 3.95 3/01/00 2,300,000
Brazos River Harbor Navigation District Harbor Revenue -
Dow Chemical Company Project 14,700,000 4.00 3/01/00 14,700,000
Gulf Coast Waste Disposal Authority - Amoco Oil Company Project 5,100,000 3.90 3/01/00 5,100,000
-------------
22,100,000
VIRGINIA 0.4%
Richmond Virginia IDA Revenue - Cogentrix of Richmond Project:
Series A 6,800,000 4.10 3/01/00 6,800,000
Series B 3,500,000 4.10 3/01/00 3,500,000
-------------
10,300,000
WYOMING 1.4%
Converse County, Wyoming Environmental Improvement Revenue -
PacifiCorp Project 5,300,000 4.00 3/01/00 5,300,000
Lincoln County, Wyoming Environmental Improvement Revenue -
PacifiCorp Project 7,100,000 4.00 3/01/00 7,100,000
Sweetwater County, Wyoming Environmental Improvement Revenue -
PacifiCorp Project 21,400,000 4.00 3/01/00 21,400,000
-------------
33,800,000
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DAILY VARIABLE RATE PUT BONDS 305,775,000
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES 101.3% 2,500,450,746
OTHER ASSETS AND LIABILITIES, NET (1.3%) (33,072,200)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $2,467,378,546
==================================================================================================================================
</TABLE>
45
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) February 29, 2000
- --------------------------------------------------------------------------------
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.
46
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
February 29, 2000
<TABLE>
<CAPTION>
(In Thousands, Except As Noted)
STRONG ADVANTAGE
FUND
----------------
<S> <C>
ASSETS:
Investments in Securities, at Value
(Cost of $2,446,219) $2,403,830
Receivable for Securities Sold 9,307
Receivable for Fund Shares Sold 592
Dividends and Interest Receivable 25,028
Other Assets 303
----------
Total Assets 2,439,060
LIABILITIES:
Payable for Securities Purchased 6,791
Payable for Fund Shares Redeemed 4,963
Dividends Payable 11,090
Accrued Operating Expenses and Other Liabilities 1,283
----------
Total Liabilities 24,127
----------
NET ASSETS $2,414,933
==========
NET ASSETS CONSIST OF:
Capital Stock (par value and paid-in capital) $2,468,565
Undistributed Net Investment Income 224
Accumulated Net Realized Loss (11,417)
Net Unrealized Depreciation (42,439)
----------
Net Assets $2,414,933
==========
INVESTOR CLASS ($ AND SHARES IN FULL)
Net Assets $2,207,887,411
Capital Shares Outstanding (Unlimited Number Authorized) 223,668,081
NET ASSET VALUE PER SHARE $9.87
=====
INSTITUTIONAL CLASS ($ AND SHARES IN FULL)
Net Assets $207,029,317
Capital Shares Outstanding (Unlimited Number Authorized) 20,985,175
NET ASSET VALUE PER SHARE $9.87
=====
ADVISOR CLASS ($ AND SHARES IN FULL)
Net Assets $15,999
Capital Shares Outstanding (Unlimited Number Authorized) 1,621
NET ASSET VALUE PER SHARE $9.87
=====
</TABLE>
47
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (continued)
- --------------------------------------------------------------------------------
February 29, 2000
<TABLE>
<CAPTION>
(In Thousands, Except As Noted)
STRONG MUNICIPAL
ADVANTAGE FUND
----------------
<S> <C>
ASSETS:
Investments in Securities, at Value
Unaffiliated Issuers (Cost of $1,697,416) $1,677,478
Affiliated Issuers (Cost of $71,400) 71,400
Receivable for Securities Sold 44,098
Receivable for Fund Shares Sold 307
Dividends and Interest Receivable 20,395
Other Assets 2,253
----------
Total Assets 1,815,931
LIABILITIES:
Payable for Securities Purchased 16,387
Payable for Fund Shares Redeemed 977
Dividends Payable 6,386
Accrued Operating Expenses and Other Liabilities 9
----------
Total Liabilities 23,759
----------
NET ASSETS $1,792,172
NET ASSETS CONSIST OF:
Capital Stock (par value and paid-in capital) $1,816,974
Accumulated Net Realized Loss (4,783)
Net Unrealized Depreciation (20,019)
----------
Net Assets $1,792,172
==========
Capital Shares Outstanding (Unlimited Number Authorized) 361,198
NET ASSET VALUE PER SHARE $4.96
=====
</TABLE>
<TABLE>
<CAPTION>
STRONG STRONG STRONG MUNICIPAL
HERITAGE INVESTORS STRONG MONEY MONEY MARKET
MONEY FUND MONEY FUND MARKET FUND FUND
---------- ---------- ------------ ----------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in Securities, at Amortized Cost $1,457,809 $525,583 $2,037,311 $2,500,451
Receivable for Fund Shares Sold -- -- 194 --
Interest Receivable 4,208 876 4,753 16,416
Other Assets 45 9 70 3,003
---------- ---------- ---------- ----------
Total Assets 1,462,062 526,468 2,042,328 2,519,870
LIABILITIES:
Payable for Securities Purchased 22,000 7,000 35,000 44,510
Payable for Fund Shares Redeemed 12 -- 1 521
Dividends Payable 6,254 2,337 8,262 7,179
Accrued Operating Expenses and Other Liabilities 23 11 40 281
---------- ---------- ---------- ----------
Total Liabilities 28,289 9,348 43,303 52,491
---------- ---------- ---------- ----------
NET ASSETS $1,433,773 $517,120 $1,999,025 $2,467,379
========== ========== ========== ==========
NET ASSETS CONSIST OF:
Capital Stock (par value and paid-in capital) $1,433,773 $517,120 $1,999,025 $2,467,379
========== ======== ========== ==========
Capital Shares Outstanding (Unlimited Number Authorized) 1,433,773 517,120 1,999,025 2,467,379
NET ASSET VALUE PER SHARE $1.00 $1.00 $1.00 $1.00
===== ===== ===== =====
</TABLE>
See Notes to Financial Statements.
48
<PAGE>
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended February 29, 2000
<TABLE>
<CAPTION>
(In Thousands)
STRONG ADVANTAGE
FUND
----------------
<S> <C>
INCOME:
Interest $169,012
Dividends 5,163
--------
Total Income 174,175
EXPENSES:
Investment Advisory Fees 12,516
Administrative Fees - Investor Class 2,929
Administrative Fees - Institutional Class 17
Custodian Fees 88
Shareholder Servicing Costs - Investor Class 2,856
Shareholder Servicing Costs - Institutional Class 13
Reports to Shareholders - Investor Class 706
Reports to Shareholders - Institutional Class 17
Transfer Agency Banking Charges - Investor Class 64
Transfer Agency Banking Charges - Institutional Class 5
Other 256
--------
Total Expenses 19,467
--------
NET INVESTMENT INCOME 154,708
REALIZED AND UNREALIZED GAIN (LOSS):
Net Realized Gain (Loss) on:
Investments (8,319)
Futures Contracts and Options 5,053
--------
Net Realized Loss (3,266)
Net Change in Unrealized Appreciation/Depreciation on:
Investments (17,435)
Futures Contracts and Options (694)
--------
Net Change in Unrealized Appreciation/Depreciation (18,129)
--------
NET LOSS ON INVESTMENTS (21,395)
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $133,313
========
</TABLE>
See Notes to Financial Statements.
49
<PAGE>
STATEMENTS OF OPERATIONS (continued)
- --------------------------------------------------------------------------------
For the Year Ended February 29, 2000
<TABLE>
<CAPTION>
(In Thousands)
STRONG MUNICIPAL
ADVANTAGE FUND
----------------
<S> <C>
INCOME:
Interest $99,318
Dividends - Affiliated Issuers 1,985
-------
Total Income 101,303
EXPENSES:
Investment Advisory Fees 12,243
Custodian Fees 65
Shareholder Servicing Costs 399
Other 383
-------
Total Expenses before Waivers and Absorptions 13,090
Voluntary Expense Waivers and Absorptions by Advisor (1,022)
-------
Expenses, Net 12,068
-------
NET INVESTMENT INCOME 89,235
REALIZED AND UNREALIZED GAIN (LOSS):
Net Realized Gain (Loss) on:
Investments (2,352)
Futures Contracts 232
-------
Net Realized Loss (2,120)
Net Change in Unrealized Appreciation/Depreciation on:
Investments (30,154)
Futures Contracts (81)
-------
Net Change in Unrealized Appreciation/Depreciation (30,235)
-------
NET LOSS ON INVESTMENTS (32,355)
-------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $56,880
=======
<CAPTION>
STRONG STRONG MUNICIPAL
STRONG HERITAGE INVESTORS STRONG MONEY MONEY MARKET
MONEY FUND MONEY FUND MARKET FUND FUND
--------------- ---------- ------------ ----------------
<S> <C> <C> <C> <C>
INTEREST INCOME $80,858 $20,319 $102,948 $92,906
EXPENSES:
Investment Advisory Fees 7,536 1,853 9,555 11,638
Custodian Fees 27 8 36 43
Shareholder Servicing Costs 401 727 4,888 842
Reports to Shareholders 120 194 1,154 277
Other 391 132 489 575
------- ------- -------- -------
Total Expenses before Waivers and Absorptions 8,475 2,914 16,122 13,375
Voluntary Expense Waivers and Absorptions by Advisor (2,774) (2,753) (3,693) --
------- ------- -------- -------
Expenses, Net 5,701 161 12,429 13,375
------- ------- -------- -------
NET INVESTMENT INCOME AND NET INCREASE
IN NET ASSETS RESULTING FROM OPERATIONS $75,157 $20,158 $ 90,519 $79,531
======= ======= ======== =======
</TABLE>
50
See Notes to Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(In Thousands)
STRONG ADVANTAGE FUND
------------------------------
Year Ended Year Ended
Feb. 29, 2000 Feb. 28, 1999
------------- -------------
<S> <C> <C>
OPERATIONS:
Net Investment Income $ 154,708 $ 148,100
Net Realized Gain (Loss) (3,266) 2,494
Net Change in Unrealized Appreciation/Depreciation (18,129) (36,915)
---------- ----------
Net Increase in Net Assets Resulting from Operations 133,313 113,679
DISTRIBUTIONS:
From Net Investment Income:
Investor Class (149,282) (148,100)
Institutional Class (5,480)
Advisor Class (1) --
---------- ----------
Total Distributions (154,763) (148,100)
CAPITAL SHARE TRANSACTIONS (NOTE 4):
Net Increase (Decrease) in Net Assets from
Capital Share Transactions (329,956) 637,114
---------- ----------
TOTAL INCREASE (DECREASE) IN NET ASSETS (351,406) 602,693
NET ASSETS:
Beginning of Year 2,766,339 2,163,646
---------- ----------
End of Year $2,414,933 $2,766,339
========== ==========
<CAPTION>
STRONG MUNICIPAL
ADVANTAGE FUND
------------------------------
Year Ended Year Ended
Feb. 29, 2000 Feb. 28, 1999
------------- -------------
<S> <C> <C>
OPERATIONS:
Net Investment Income $ 89,235 $ 60,111
Net Realized Gain (Loss) (2,120) 134
Net Change in Unrealized Appreciation/Depreciation (30,235) 2,602
---------- ----------
Net Increase in Net Assets Resulting from Operations 56,880 62,847
DISTRIBUTIONS FROM NET INVESTMENT INCOME (89,235) (60,111)
CAPITAL SHARE TRANSACTIONS (NOTE 4):
Net Increase (Decrease) in Net Assets from
Capital Share Transactions (346,395) 1,156,146
---------- ----------
TOTAL INCREASE (DECREASE) IN NET ASSETS (378,750) 1,158,882
NET ASSETS:
Beginning of Year 2,170,922 1,012,040
---------- ----------
End of Year $1,792,172 $2,170,922
========== ==========
</TABLE>
51
See Notes to Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(In Thousands)
STRONG HERITAGE STRONG INVESTORS
MONEY FUND MONEY FUND
--------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
Feb. 29, 2000 Feb. 28, 1999 Feb. 29, 2000 Feb. 28, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net Investment Income and Net Increase in
Net Assets Resulting from Operations $ 75,157 $ 79,313 $ 20,158 $ 5,670
DISTRIBUTIONS FROM NET INVESTMENT INCOME (75,157) (79,313) (20,158) (5,670)
CAPITAL SHARE TRANSACTIONS (NOTE 4):
Net Increase (Decrease) in Net Assets from
Capital Share Transactions (402,911) 353,144 261,476 248,176
---------- ---------- -------- --------
TOTAL INCREASE (DECREASE) IN NET ASSETS (402,911) 353,144 261,476 248,176
NET ASSETS:
Beginning of Year 1,836,684 1,483,540 255,644 7,468
---------- ---------- -------- --------
End of Year $1,433,773 $1,836,684 $517,120 $255,644
========== ========== ======== ========
<CAPTION>
--------------------------------------------------------------------------------------
STRONG MONEY STRONG MUNICIPAL
MARKET FUND MONEY MARKET FUND
--------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
Feb. 29, 2000 Feb. 28, 1999 Oct. 31, 1998 Feb. 29, 2000 Feb. 28, 1999
------------- ------------- ------------- ------------- -------------
(Note 1)
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net Investment Income and
Net Increase in Net Assets
Resulting from Operations $ 90,519 $ 29,179 $ 97,648 $ 79,531 $ 69,441
DISTRIBUTIONS FROM NET
INVESTMENT INCOME (90,519) (29,179) (97,648) (79,531) (69,441)
CAPITAL SHARE TRANSACTIONS (NOTE 4):
Net Increase in Net Assets from
Capital Share Transactions 72,836 2,365 85,446 362,874 233,273
---------- ---------- ---------- ---------- ----------
TOTAL INCREASE IN NET ASSETS 72,836 2,365 85,446 362,874 233,273
NET ASSETS:
Beginning of Year 1,926,189 1,923,824 1,838,378 2,104,505 1,871,232
---------- ---------- ---------- ---------- ----------
End of Year $1,999,025 $1,926,189 $1,923,824 $2,467,379 $2,104,505
========== ========== ========== ========== ==========
</TABLE>
52
See Notes to Financial Statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
February 29, 2000
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 (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, as amended.
During 1998, the Board of Directors of the Strong Money Market Fund, Inc.
approved changing the Fund's fiscal year-end from October 31 to February
28.
Effective September 1, 1999, the Strong Advantage Fund, Inc. has issued
three classes of shares: Investor Class, Institutional Class and Advisor
Class. The Advisor Class shares are subject to an annual distribution fee
as described in Note 3. Each class of shares has identical rights and
privileges except with respect to voting rights on matters pertaining to
that class. Income, expenses (other than expenses attributable to a
specific class), and realized and unrealized gains or losses on investments
are allocated to each class of shares based on its relative net assets.
Effective March 31, 2000, the Strong Heritage Money Fund has issued three
new classes of shares: Investor Class, Institutional Class and Advisor
Class. The Advisor Class shares are subject to a distribution fee in the
amount of 0.25% of the Fund's average daily net assets attributable to
Advisor Class shares. Each class of shares has identical rights and
privileges except with respect to voting rights on matters pertaining to
that class.
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 29, 2000 were as follows:
<TABLE>
<CAPTION>
Aggregate Aggregate Percent of
Cost Fair Value Net Assets Liquid*
--------- ---------- ---------- -------
<S> <C> <C> <C> <C>
Strong Advantage Fund $832,973,606 $815,985,163 33.8% 83.5%
Strong Heritage Money Fund 729,783,586 732,932,524 51.1% 100.0%
Strong Investors Money Fund 260,360,594 261,433,926 50.6% 100.0%
Strong Money Market Fund 988,211,777 992,259,369 49.6% 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.
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.
53
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
February 29, 2000
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 that 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.
Investments in foreign denominated assets or forward currency
contracts may involve greater risks than domestic investments due to
currency, political, 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. Changes between the initial premiums received and the current
market value of the options are recorded as unrealized gains or
losses. 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. Securities held by the Funds may be
designated as collateral on written options.
(G) Foreign Currency Translation -- Investment securities and other assets
and liabilities initially expressed in foreign currencies are
converted daily 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 the value
of the collateral, including accrued interest, to ensure it 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) Expense Offset Arrangements -- Certain Funds pay a portion of their
custodian fees indirectly through expense offset arrangements.
Custodian fees are reduced for Funds that maintain compensating
balances in non-interest bearing accounts. The Funds could have
invested the assets used to pay for the custodian fees, had the assets
not been used in the expense offset arrangements. During the year
ended February 29, 2000, the Strong Municipal Money Market Fund paid
$4,498 through expense offset arrangements.
54
<PAGE>
- --------------------------------------------------------------------------------
February 29, 2000
(L) 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, administrative, shareholder
recordkeeping and related services to the Funds. Investment advisory and
administrative fees, which are established by terms of the Advisory
Agreements, are based on the following annualized rates of the average
daily net assets of the respective Fund:
<TABLE>
<CAPTION>
Administrative Administrative Administrative
Fees - Fees - Fees -
Advisory Fees Advisory Fees Investor Class Institutional Class Advisor Class
Mar. 1, 1999- Sept. 1, 1999- Sept. 1, 1999- Sept. 1, 1999- Sept. 1, 1999-
Aug. 31, 1999 Feb. 29, 2000 Feb. 29, 2000 Feb. 29, 2000 Feb. 29, 2000
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Strong Advantage Fund 0.60% 0.35% 0.25% 0.02% 0.25%
Strong Municipal Advantage Fund 0.60% 0.60% * * *
Strong Heritage Money Fund 0.50% 0.50% * * *
Strong Investors Money Fund 0.50% 0.50% * * *
Strong Money Market Fund 0.50% 0.50% * * *
Strong Municipal Money Market Fund 0.50% 0.50% * * *
</TABLE>
*The Strong Municipal Advantage Fund, Strong Heritage Money Fund, Strong
Investors Money Fund, Strong Money Market Fund and Strong Municipal Money
Market Fund do not charge Administrative Fees or offer Institutional or
Advisor Class shares.
Based on the terms of the Advisory Agreements, advisory fees,
administrative fees and other expenses will be waived or absorbed 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 its discretion. Shareholder recordkeeping and
related service fees are based on contractually established rates for each
open and closed shareholder account. The Advisor also allocates to each
Fund certain charges or credits resulting from transfer agency banking
activities based on each Fund's level of subscription and redemption
activity. Charges allocated to the Funds by the Advisor are included in
Other Expenses in the Fund's Statement of Operations, except where
indicated. Credits allocated (none during the period) by the Advisor serve
to reduce the shareholder servicing expenses incurred by the Funds and are
reported as Fees Paid Indirectly by Advisor in the Funds' Statement of
Operations. The Advisor is also compensated for certain other services
related to costs incurred for reports to shareholders.
The Strong Advantage Fund has entered into a distribution agreement with
Strong Investments, Inc. (the "Distributor"), pursuant to Rule 12b-1 under
the 1940 Act, on behalf of the Fund's Advisor Class shares. Under the
agreement, the Distributor is paid an annual rate of 0.25% of the average
daily net assets of the Advisor Class shares as compensation for services
provided and expenses incurred, including amounts paid to brokers or
dealers, in connection with the sale of the Fund's shares. During the
period September 1, 1999 to February 29, 2000, the Fund incurred $35 of
12b-1 fees.
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.
Certain information regarding related party transactions, excluding the
effect of waivers and absorptions, for the year ended February 29, 2000, is
as follows:
<TABLE>
<CAPTION>
Payable to Shareholder Servicing Transfer Agency Unaffiliated
Advisor at and Other Expenses Banking Directors'
Feb. 29, 2000 Paid to Advisor Charges Fees
---------------- ----------------- ----------- ---------
<S> <C> <C> <C> <C>
Strong Advantage Fund $86,279 $2,877,252 $ 68,862 $54,451
Strong Municipal Advantage Fund 8,354 399,958 71,962 39,530
Strong Heritage Money Fund 23,196 402,237 240,074 30,999
Strong Investors Money Fund 10,443 730,319 6,713 9,189
Strong Money Market Fund 38,784 4,904,704 362,400 41,680
Strong Municipal Money Market Fund 56,459 845,869 341,818 47,626
</TABLE>
The Advisor owns 100% of the outstanding Advisor Class shares and one
shareholder owns 52% of the outstanding Institutional Class shares of the
Strong Advantage Fund.
55
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
February 29, 2000
4. Capital Share Transactions
<TABLE>
<CAPTION>
Strong Advantage Fund
----------------------------------
Year Ended Year Ended
Feb. 29, 2000 Feb. 28, 1999
--------------- ---------------
(Note 1)
<S> <C> <C>
Capital Share Transactions of Each Class of
Shares of the Funds Were as Follows:
INVESTOR CLASS
Proceeds from Shares Sold $1,638,747,425 $2,946,300,339
Proceeds from Reinvestment of Distributions 137,003,912 131,622,405
Payment for Shares Redeemed (2,313,175,285) (2,440,807,929)
--------------- ---------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions (537,423,948) 637,114,815
INSTITUTIONAL CLASS
Proceeds from Shares Sold 243,835,593 --
Proceeds from Reinvestment of Distributions 4,394,921 --
Payment for Shares Redeemed (40,778,287) --
--------------- ---------------
Net Increase in Net Assets from
Capital Share Transactions 207,452,227 --
ADVISOR CLASS
Proceeds from Shares Sold 260,337 --
Payment for Shares Redeemed (244,333) --
--------------- ---------------
Net Increase in Net Assets from
Capital Share Transactions 16,004 --
--------------- ---------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions ($329,955,717) $ 637,114,815
=============== ===============
Transactions in Shares of Each Class of
the Funds Were as Follows:
INVESTOR CLASS
Sold 165,265,116 293,642,636
Issued in Reinvestment of Distributions 13,816,153 13,122,722
Redeemed (233,361,689) (243,494,052)
--------------- ---------------
Net Increase (Decrease) in Shares (54,280,420) 63,271,306
INSTITUTIONAL CLASS
Sold 24,672,726 --
Issued in Reinvestment of Distributions 445,245 --
Redeemed (4,132,796) --
--------------- ---------------
Net Increase in Shares 20,985,175 --
ADVISOR CLASS
Sold 26,376 --
Redeemed (24,755) --
--------------- ---------------
Net Increase in Shares 1,621 --
--------------- ---------------
Net Increase (Decrease) in Shares of the Fund (33,293,624) 63,271,306
=============== ===============
</TABLE>
56
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Strong Municipal
Advantage Fund
----------------------------------
Year Ended Year Ended
Feb. 29, 2000 Feb. 28, 1999
--------------- ---------------
<S> <C> <C>
Capital Share Transactions of Each of
the Funds Were as Follows:
Proceeds from Shares Sold $1,615,970,724 $2,486,040,369
Proceeds from Reinvestment of Distributions 80,780,433 51,810,239
Payment for Shares Redeemed (2,043,146,413) (1,381,704,800)
--------------- ---------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions ($ 346,395,256) $1,156,145,808
=============== ===============
Transactions in Shares of Each of
the Funds Were as Follows:
Sold 322,494,889 493,758,859
Issued in Reinvestment of Distributions 16,123,911 10,289,604
Redeemed (408,229,221) (274,412,765)
--------------- ---------------
Net Increase (Decrease) in Shares of the Fund (69,610,421) 229,635,698
=============== ===============
</TABLE>
<TABLE>
<CAPTION>
Strong Heritage Strong Investors
Money Fund Money Fund
---------------------------------- --------------------------------
Year Ended Year Ended Year Ended Year Ended
Feb. 29, 2000 Feb. 28, 1999 Feb. 29, 2000 Feb. 28, 1999
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Capital Share Transactions of Each of
the Funds Were as Follows:
Proceeds from Shares Sold $1,819,792,681 $2,304,385,615 $562,665,205 $337,627,943
Proceeds from Reinvestment of Distributions 70,333,240 74,363,330 17,714,045 4,440,854
Payment for Shares Redeemed (2,293,036,089) (2,025,604,899) (318,902,590) (93,893,642)
--------------- --------------- --------------- ---------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions ($ 402,910,168) $ 353,144,046 $261,476,660 $248,175,155
=============== =============== =============== ===============
Transactions in Shares of Each of
the Funds Were as Follows:
Sold 1,819,792,681 2,304,385,615 562,665,205 337,627,943
Issued in Reinvestment of Distributions 70,333,240 74,363,330 17,714,045 4,440,854
Redeemed (2,293,036,089) (2,025,604,899) (318,902,590) (93,893,642)
--------------- --------------- --------------- ---------------
Net Increase (Decrease) in Shares of the Fund (402,910,168) 353,144,046 261,476,660 248,175,155
=============== =============== =============== ===============
</TABLE>
57
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
February 29, 2000
<TABLE>
<CAPTION>
Strong Money Strong Municipal
Market Fund Money Market Fund
------------------------------------------------- -------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
Feb. 29, 2000 Feb. 28, 1999 Oct. 31, 1998 Feb. 29, 2000 Feb. 28, 1999
--------------- --------------- --------------- --------------- --------------
(Note 1)
<S> <C> <C> <C> <C> <C>
Capital Share Transactions of Each of
the Funds Were as Follows:
Proceeds from Shares Sold $2,712,343,984 $1,042,350,631 $3,195,384,907 $5,697,775,929 $5,262,564,730
Proceeds from Reinvestment of Distributions 85,586,423 29,873,664 93,464,902 69,705,320 63,080,172
Payment for Shares Redeemed (2,725,094,594) (1,069,859,038) (3,203,403,721) (5,404,607,866) (5,092,371,532)
--------------- --------------- --------------- --------------- --------------
Net Increase in Net Assets from
Capital Share Transactions $ 72,835,813 $ 2,365,257 $ 85,446,088 $ 362,873,383 $ 233,273,370
=============== =============== =============== =============== ==============
Transactions in Shares of Each of
the Funds Were as Follows:
Sold 2,712,343,984 1,042,350,631 3,195,384,907 5,697,775,929 5,262,564,730
Issued in Reinvestment of Distributions 85,586,423 29,873,664 93,464,902 69,705,320 63,080,172
Redeemed (2,725,094,594) (1,069,859,038) (3,203,403,721) (5,404,607,866) (5,092,371,532)
--------------- --------------- --------------- --------------- --------------
Net Increase in Shares of the Fund 72,835,813 2,365,257 85,446,088 362,873,383 233,273,370
=============== =============== =============== =============== ==============
</TABLE>
5. Line of Credit
The Strong Funds, excluding Strong Heritage Money Fund, Strong Investors
Money Fund, Strong Money Market Fund and Strong Municipal Money Market
Fund, 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
LOC. For an individual Fund, borrowings under the LOC are limited to either
the lesser of 15% of the market value of the Fund's total assets or any
explicit borrowing limits in the Funds' prospectus. Principal and interest
on each borrowing under the LOC are due not more than 60 days after the
date of the borrowing. Borrowings under the LOC bear interest based on
prevailing market rates as defined in the LOC. A commitment fee of 0.08%
per annum is incurred on the unused portion of the LOC and is allocated to
all participating Strong Funds. At February 29, 2000, 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 29, 2000, 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 $83,812,789 $1,115,289,973 $134,000,876 $1,418,764,560
Strong Municipal Advantage Fund -- 410,983,780 -- 387,164,740
</TABLE>
7. Income Tax Information
At February 29, 2000, the investment cost, gross unrealized appreciation
and depreciation on investments and capital loss carryovers (expiring in
varying amounts through 2007) for federal income tax purposes were as
follows:
<TABLE>
<CAPTION>
Federal Tax Unrealized Unrealized Net Net Capital Loss
Cost Appreciation Depreciation Depreciation Carryovers
--------------- -------------- -------------- -------------- ------------------
<S> <C> <C> <C> <C> <C>
Strong Advantage Fund $2,446,240,660 $6,175,608 $48,586,208 $42,410,600 $11,445,097
Strong Municipal Advantage Fund 1,768,822,669 750,945 20,695,660 19,944,715 4,856,542
</TABLE>
For corporate shareholders in Strong Advantage Fund and Strong Municipal
Advantage Fund, the percentages of dividend income distributed for the year
ended February 29, 2000, which is designated as qualifying for the
dividends-received deduction are 3.1% and 0.0%, respectively (unaudited).
58
<PAGE>
- --------------------------------------------------------------------------------
8. Investments in Affiliates
Affiliated issuers, as defined under the Investment Company Act of 1940,
include those in which the Fund's holdings of an issuer 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 29, 2000 is as follows:
<TABLE>
<CAPTION>
Balance of Gross Gross Sales Balance of Value Dividend Income
Shares Held Purchases and Shares Held Feb. 29, Mar. 1, 1999 -
Mar. 1, 1999 and Additions Reductions Feb. 29, 2000 2000 Feb. 29, 2000
------------ ------------- ---------- ------------- -------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Strong Municipal Advantage Fund
----------------------------------
Strong Municipal Money Market Fund 87,100,000 1,171,200,000 1,186,900,000 71,400,000 $71,400,000 $1,985,396
</TABLE>
59
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
STRONG ADVANTAGE FUND -- INVESTOR CLASS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
----------------------------------------------------------
Feb. 29, Feb. 28, Feb. 28, Feb. 28, Feb. 29, Dec. 31,
Selected Per-Share Data(a) 2000 1999 1998 1997 1996(b) 1995
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $9.95 $10.08 $10.09 $10.03 $10.04 $ 9.98
Income From Investment Operations:
Net Investment Income 0.59 0.59 0.62 0.62 0.10 0.67
Net Realized and Unrealized Gains (Losses) on Investments (0.08) (0.13) (0.01) 0.06 (0.01) 0.06
- ---------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.51 0.46 0.61 0.68 0.09 0.73
Less Distributions:
From Net Investment Income (0.59) (0.59) (0.62) (0.62) (0.10) (0.67)
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.59) (0.59) (0.62) (0.62) (0.10) (0.67)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $9.87 $ 9.95 $10.08 $10.09 $10.03 $10.04
===========================================================================================================================
Ratios and Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------
Total Return +5.2% +4.6% +6.3% +7.0% +0.9% +7.5%
Net Assets, End of Period (In Millions) $2,208 $2,766 $2,164 $1,520 $1,000 $990
Ratio of Expenses to Average Net Assets 0.8% 0.7% 0.8% 0.8% 0.8%* 0.8%
Ratio of Net Investment Income to Average Net Assets 5.9% 5.8% 6.2% 6.2% 6.3%* 6.6%
Portfolio Turnover Rate(d) 48.1% 79.3% 109.6% 154.9% 17.2% 183.7%
</TABLE>
STRONG ADVANTAGE FUND -- INSTITUTIONAL CLASS
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
----------
Feb. 29,
Selected Per-Share Data(a) 2000(c)
- ---------------------------------------------------------------------------
<S> <C>
Net Asset Value, Beginning of Period $9.89
Income From Investment Operations:
Net Investment Income 0.32
Net Realized and Unrealized Losses on Investments (0.02)
- ---------------------------------------------------------------------------
Total from Investment Operations 0.30
Less Distributions:
From Net Investment Income (0.32)
- ---------------------------------------------------------------------------
Total Distributions (0.32)
- ---------------------------------------------------------------------------
Net Asset Value, End of Period $9.87
===========================================================================
Ratios and Supplemental Data
- ---------------------------------------------------------------------------
Total Return +3.1%
Net Assets, End of Period (In Millions) $207
Ratio of Expenses to Average Net Assets 0.4%*
Ratio of Net Investment Income to Average Net Assets 6.5%*
Portfolio Turnover Rate(d) 48.1%
</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)In 1996, the Fund changed its fiscal year-end from December to February.
(c) For the period from September 1, 1999 (Commencement of Class) to February
29, 2000 (Note 1).
(d) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
60
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVANTAGE FUND -- ADVISOR CLASS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
----------
Feb. 29,
Selected Per-Share Data(a) 2000(b)
- ---------------------------------------------------------------------------
<S> <C>
Net Asset Value, Beginning of Period $9.89
Income From Investment Operations:
Net Investment Income 0.27
Net Realized and Unrealized Losses on Investments (0.02)
- ---------------------------------------------------------------------------
Total from Investment Operations 0.25
Less Distributions:
From Net Investment Income (0.27)
- ---------------------------------------------------------------------------
Total Distributions (0.27)
- ---------------------------------------------------------------------------
Net Asset Value, End of Period $9.87
===========================================================================
Ratios and Supplemental Data
- ---------------------------------------------------------------------------
Total Return +2.6%
Net Assets, End of Period (In Millions) $0(c)
Ratio of Expenses to Average Net Assets 1.1%*
Ratio of Net Investment Income to Average Net Assets 5.7%*
Portfolio Turnover Rate(d) 48.1%
</TABLE>
STRONG MUNICIPAL ADVANTAGE FUND
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
-----------------------------------------------
Feb. 29, Feb. 28, Feb. 28, Feb. 28, Feb. 29,
Selected Per-Share Data(a) 2000 1999 1998 1997 1996(f)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $5.04 $5.03 $5.01 $5.01 $5.00
Income From Investment Operations:
Net Investment Income 0.21 0.21 0.22 0.25 0.06
Net Realized and Unrealized Gains (Losses) on Investments (0.08) 0.01 0.02 0.00(e) 0.01
- --------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.13 0.22 0.24 0.25 0.07
Less Distributions:
From Net Investment Income (0.21) (0.21) (0.22) (0.25) (0.06)
From Net Realized Gains -- -- -- 0.00(e) --
- --------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.21) (0.21) (0.22) (0.25) (0.06)
- --------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $4.96 $5.04 $5.03 $5.01 $5.01
==========================================================================================================================
Ratios and Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------
Total Return +2.7% +4.5% +5.0% +5.1% +1.4%
Net Assets, End of Period (In Millions) $1,792 $2,171 $1,012 $644 $132
Ratio of Expenses to Average Net Assets Without Waivers and Absorptions 0.6% 0.6% 0.7% 0.7% 0.7%*
Ratio of Expenses to Average Net Assets 0.6% 0.5% 0.4% 0.0%(e 0.0%*
Ratio of Net Investment Income to Average Net Assets 4.3% 4.1% 4.5% 5.0% 4.9%*
Portfolio Turnover Rate 35.0% 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)For the period from September 1, 1999 (Commencement of Class) to February 29,
2000 (Note 1).
(c) Amount is less than $500,000.
(d) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
(e) Amount calculated is less than $0.01 or 0.01%.
(f) For the period from November 30, 1995 (inception) to February 29, 1996.
61
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
- ---------------------------------------------------------------------------
STRONG HERITAGE MONEY FUND
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
------------------------------------------------
Feb. 29, Feb. 28, Feb. 28, Feb. 28, Feb. 29,
Selected Per-Share Data(a) 2000 1999 1998 1997 1996(c)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
Income From Investment Operations:
Net Investment Income 0.05 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 0.05 0.04
Less Distributions:
From Net Investment Income (0.05) (0.05) (0.05) (0.06) (0.04)
- ----------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.05) (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 $1.00
=============================================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------
Total Return +5.1% +5.3% +5.6% +5.7%(b) +4.1%
Net Assets, End of Period (In Millions) $1,434 $1,837 $1,484 $2,000 $942
Ratio of Expenses to Average Net Assets Without Waivers and Absorptions 0.6% 0.6% 0.6% 0.6% 0.6%*
Ratio of Expenses to Average Net Assets 0.4% 0.3% 0.2% 0.1% 0.0%*(d)
Ratio of Net Investment Income to Average Net Assets 5.0% 5.2% 5.4% 5.6% 5.9%*
</TABLE>
STRONG INVESTORS MONEY FUND
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
---------------------------------
Feb. 29, Feb. 28, Feb. 28,
Selected Per-Share Data(a) 2000 1999 1998(e)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00
Income From Investment Operations:
Net Investment Income 0.05 0.06 0.00(d)
- -----------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.05 0.06 0.00(d)
Less Distributions:
From Net Investment Income (0.05) (0.06) --
- -----------------------------------------------------------------------------------------------------------
Total Distributions (0.05) (0.06) --
- -----------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00
===========================================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------------------
Total Return +5.5% +5.7% +0.5%
Net Assets, End of Period (In Millions) $517 $256 $7
Ratio of Expenses to Average Net Assets Without Waivers and Absorptions 0.8% 0.9% 2.0%*
Ratio of Expenses to Average Net Assets 0.0%(d) 0.0% 0.0%*
Ratio of Net Investment Income to Average Net Assets 5.4% 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) Had the Advisor not made the capital contribution as noted above, the
adjusted total return would have been 5.0% for the fiscal year ended February
28, 1997.
(c) For the period from June 29, 1995 (inception) to February 29, 1996.
(d) Amount calculated is less than 0.01%.
(e) For the period from January 31, 1998 (inception) to February 28, 1998 (Note
1).
62
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
----------------------------------------------------------------
Feb. 29, Feb. 28, Oct. 31, Oct. 31, Oct. 31, Oct. 31, Dec. 31,
Selected Per-Share Data(a) 2000 1999(b) 1998 1997 1996 1995(d) 1994
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income From Investment Operations:
Net Investment Income 0.05 0.02 0.05 0.05 0.05 0.05 0.04
Net Realized Losses on Investments -- -- -- (0.01) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.05 0.02 0.05 0.04 0.05 0.05 0.04
Less Distributions:
From Net Investment Income (0.05) (0.02) (0.05) (0.05) (0.05) (0.05) (0.04)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.05) (0.02) (0.05) (0.05) (0.05) (0.05) (0.04)
- ---------------------------------------------------------------------------------------------------------------------------------
Capital Contribution -- -- -- 0.01 -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
=================================================================================================================================
Ratios and Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return +4.8% +1.5% +5.3% +5.3%(c) +5.4% +5.2% +4.0%
Net Assets, End of Period (In Millions) $1,999 $1,926 $1,924 $1,838 $1,949 $1,934 $541
Ratio of Expenses to Average Net Assets Without Waivers and
Absorptions 0.8% 0.9%* 0.9% 0.9% 0.8% 0.7%* 0.9%
Ratio of Expenses to Average Net Assets 0.7% 0.6%* 0.5% 0.5% 0.4% 0.0%* 0.6%
Ratio of Net Investment Income to Average Net Assets 4.7% 4.6%* 5.2% 5.2% 5.3% 6.1%* 4.0%
</TABLE>
STRONG MUNICIPAL MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
-------------------------------------------------------
Feb. 29, Feb. 28, Feb. 28, Feb. 28, Feb. 29, Dec. 31,
Selected Per-Share Data(a) 2000 1999 1998 1997 1996(f) 1995
- ------------------------------------------------------------------------------------------------------------------------
<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 0.03 0.04 0.03 0.01 0.04
- ------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.03 0.03 0.04 0.03 0.01 0.04
Less Distributions:
From Net Investment Income(e) (0.03) (0.03) (0.04) (0.03) (0.01) (0.04)
- ------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.03) (0.03) (0.04) (0.03) (0.01) (0.04)
- ------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
========================================================================================================================
Ratios and Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------
Total Return +3.5% +3.4% +3.6% +3.5% +0.6% +4.1%
Net Assets, End of Period (In Millions) $2,467 $2,105 $1,871 $1,895 $1,609 $1,416
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% 3.4% 3.5% 3.5% 3.6%* 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 noted above, the
adjusted total return would have been 4.5% for the year ended October 31, 1997.
(d) In 1995, the Fund changed its fiscal year-end from December to October.
(e) Tax-exempt for regular Federal income tax purposes.
(f) In 1996, the Fund changed its fiscal year-end from December to February.
63
See Notes to Financial Statements.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Directors of
Strong Cash Management Funds
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments in securities, 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 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.), Strong Advantage Fund, Inc., and Strong Money
Market Fund, Inc. (all six of the portfolios collectively referred to herein as
"Strong Cash Management Funds") at February 29, 2000, the results of each of
their operations, the changes in each of their net assets and the financial
highlights for the periods indicated, in conformity with accounting principles
generally accepted in the United States. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of 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 auditing
standards generally accepted in the United States which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
February 29, 2000 by correspondence with the custodian and brokers and the
application of alternative auditing procedures where broker confirmations were
not received, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Milwaukee, Wisconsin
April 7, 2000
64
<PAGE>
DIRECTORS
Richard S. Strong
Marvin E. Nevins
William F. Vogt
Willie D. Davis
Stanley Kritzik
Neal Malicky
OFFICERS
Richard S. Strong, CHAIRMAN OF THE BOARD
Thomas M. Zoeller, VICE PRESIDENT
Dennis A. Wallestad, VICE PRESIDENT
Stephen J. Shenkenberg, VICE PRESIDENT AND SECRETARY
John S. Weitzer, VICE PRESIDENT
John W. Widmer, TREASURER
Rhonda K. Haight, ASSISTANT 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.
Strong Investments Inc., RT2374-0300
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
Visit our web site at
www.eStrong.com
[LOGO]
STRONG INVESTMENTS-Registered Trademark-
P.O. Box 2936
Milwaukee, Wisconsin 53201
