[PIE CHART WITH STOCKS EMPHASIS]
FUND PROFILE
July 1, 1998
THE STRONG EQUITY INCOME FUND
THE STRONG GROWTH AND INCOME FUND
THE STRONG SCHAFER BALANCED FUND
THE STRONG SCHAFER VALUE FUND
This profile summarizes key information about the Funds that is included in the
Funds' prospectus. The Funds' prospectus includes additional information about
the Funds, including a more detailed description of the risks associated with
investing in the Funds that you may want to consider before you invest. You may
obtain the prospectus and other information about the Funds at no cost by
calling 1-800-368-3863 or visiting our web site at www.strong-funds.com.
[STRONG FUNDS LOGO]
STRONG FUNDS
<PAGE>
WHAT ARE THE FUNDS' GOALS?
The STRONG EQUITY INCOME FUND and the STRONG SCHAFER BALANCED FUND seek total
return by investing for both income and capital growth.
The STRONG GROWTH AND INCOME FUND seeks high total return by investing for
capital growth and income.
The STRONG SCHAFER VALUE FUND seeks long-term capital growth. Current income is
a secondary objective.
WHAT ARE THE FUNDS' INVESTMENT STRATEGIES?
The EQUITY INCOME FUND and the GROWTH AND INCOME FUND primarily focus on large,
dividend-paying companies. These companies typically offer well-known products
and services, and may enjoy strong earnings growth. In addition, the GROWTH AND
INCOME FUND may include a complement of mid-size companies that have the
potential for rapid growth. The Funds' manager may sell a stock when its
earnings prospects decline, or when it reaches its full potential based on the
manager's economic forecast.
The SCHAFER VALUE FUND invests primarily in stocks of medium- and large-size
companies. The portfolio manager selects stocks of companies that have
above-average growth, but also are inexpensive relative to market averages.
The Fund invests roughly equal amounts of its assets in each
stock in the portfolio, and generally invests all of its assets in stocks.
The manager sells holdings when they are no longer attractive based on their
growth potential or price.
The SCHAFER BALANCED FUND invests approximately 60% of its assets in stocks.
For this portion of the portfolio, it follows the investment style of the
SCHAFER VALUE FUND. The remainder of the Fund is invested in high-quality bonds.
The manager may sell bonds as appropriate to address changes in interest rates.
<PAGE>
Additional information about each Fund's investments is available in annual and
semiannual reports to shareholders. Each Fund's reports discuss the market
conditions and investment strategies that significantly affected performance
during the past fiscal year. You may obtain these reports at no cost by calling
1-800-368-3863.
WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUNDS?
GENERAL STOCK RISKS: The Funds' major risks are those of investing in the stock
market. That means they may experience sudden, unpredictable declines in value,
as well as periods of poor performance. Because stock values fluctuate, when you
sell your investment you may receive more or less money than you originally
invested.
MEDIUM-SIZE COMPANIES: The SCHAFER VALUE, SCHAFER BALANCED, and GROWTH AND
INCOME FUNDS invest in the stocks of medium-size companies. These are generally
more volatile than stocks of large companies, but tend to be less volatile than
small-company stocks.
FOREIGN SECURITIES: The SCHAFER VALUE, SCHAFER BALANCED, and GROWTH AND INCOME
FUNDS may invest to a limited degree in foreign securities. To the extent they
do so, these Funds are exposed to the risks of foreign investing, which include
currency fluctuations, political instability, differences in financial
reporting standards, and less stringent regulation of securities markets.
BOND RISKS: The SCHAFER BALANCED FUND also maintains a significant position in
bonds. The market value of a bond is affected by changes in interest rates-when
interest rates rise, the market value of a bond declines. Generally, the longer
a bond's maturity, the greater this risk. A bonds' value can also be affected by
changes in the credit rating or financial condition of its issuer.
These Funds are appropriate for investors who have financial goals five years
or more in the future, and who are comfortable with the risks described here.
They are not appropriate for investors concerned primarily with principal
stability.
Continued ..
MAIN RISKS OF INVESTING IN THE FUNDS, CONTINUED ..
The return information provided illustrates how the Funds' performance can vary,
which is one indication of the risks of investing in the Funds. Please keep in
mind that the Funds' past performance does not represent how they will perform
in the future. Only Funds with at least one calendar year's returns appear
below.
<PAGE>
CALENDAR YEAR TOTAL RETURNS
[BAR GRAPH]
Equity Income Growth and Schafer
Fund Income Fund Value Fund
1988 - - 18.0%
- ------ ------------- ------ -------------
1989 - - 30.1%
- ------ ------------- ------ -------------
1990 - - -10.1%
- ------ ------------- ------ -------------
1991 - - 40.9%
- ------ ------------- ------ -------------
1992 - - 18.7%
- ------ ------------- ------ -------------
1993 - - 24.0%
- ------ ------------- ------ -------------
1994 - - -4.3%
- ------ ------------- ------ -------------
1995 - - 34.2%
- ------ ------------- ------ -------------
1996 28.1% 31.9% 23.2%
- ------ ------------- ------ -------------
1997 31.3% 30.4% 29.3%
- ------ ------------- ------ -------------
For the first quarter of 1998, the Funds' returns were: Equity Income, 11.1%;
Growth and Income, 12.4%; Schafer Value, 9.9%; Schafer Balanced, 4.3%.
BEST AND WORST QUARTERLY PERFORMANCE
FUND NAME BEST QUARTER RETURN WORST QUARTER RETURN
- -------------------- -------------------- ---------------------
Equity Income 15.5% (2nd Q 1997) 1.7% (4th Q 1997)
- -------------------- -------------------- ---------------------
Growth and Income 16.3% (2nd Q 1997) 0.6% (4th Q 1997)
- -------------------- -------------------- ---------------------
Schafer Value 22.5% (1st Q 1991) -16.6% (3rd Q 1990)
- -------------------- -------------------- ---------------------
AVERAGE ANNUAL TOTAL RETURNS
As of 3-31-98
FUND/INDEX 1-YEAR 5-YEAR 10-YEAR
- ------------- --------- --------- ---------
EQUITY INCOME 42.71% - -
- ------------- --------- --------- ---------
GROWTH AND INCOME 45.27% - -
- ------------- --------- --------- ---------
SCHAFER VALUE 41.00% 21.01% 19.04%
- ------------- --------- --------- ---------
S&P 500 48.00% 22.40% 18.94%
- ------------- --------- --------- ---------
The Standard & Poor's 500 Stock Index is an unmanaged index generally
representative of the market for the stocks of large-sized U.S. companies.
WHAT ARE THE FUNDS' FEES AND EXPENSES?
This section describes the fees and expenses that you may pay if you buy and
hold shares of the Funds.
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
The Funds are 100% no-load, so you pay no fees to buy or sell shares. There
also are no 12b-1 marketing fees.
ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
You do pay the costs of operating each Fund, which are deducted from the Fund's
assets. These costs are deducted before computing the daily share price or
making distributions. As a result, they don't appear on your account statement,
but instead reduce the amount of total return you receive. Because the SCHAFER
BALANCED FUND began operations on December 31, 1997, its expenses other than
management fees are estimated in the chart below.
<PAGE>
Annual Fund Operating Expenses
(as a percent of average net assets)
FUND MANAGEMENT FEES OTHER EXPENSES TOTAL EXPENSES
- ---------------- --------------- --------------- ---------------
Equity Income 0.80% 0.34% 1.14%
- ---------------- --------------- --------------- ---------------
Growth & Income 0.80% 0.40% 1.20%
- ---------------- --------------- --------------- ---------------
Schafer Balanced 1.00% 0.64% 1.64%
- ---------------- --------------- --------------- ---------------
Schafer Value 1.00% 0.22% 1.22%
- ---------------- --------------- --------------- ---------------
EXAMPLE: This example is intended to help you compare the cost of investing in
the Fund with the cost of investing in other mutual funds. The example assumes
that you invest $10,000 in the Fund for the time periods indicated, and then
redeem all of your shares at the end of those periods. The example also assumes
that your investment has a 5% return each year and that the Fund's operating
expenses remain the same. Although your actual costs may be higher or lower,
based on these assumptions your costs would be:
FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------- --------- --------- --------- -------------
Equity Income $116 $362 $628 $1,386
- ------------- --------- --------- --------- ---------
Growth and Income $122 $381 $660 $1,455
- ------------- --------- --------- --------- ---------
Schafer Balanced $167 $517 $892 $1,944
- ------------- --------- --------- --------- ---------
Schafer Value $124 $387 $670 $1,477
- ------------- --------- --------- --------- ---------
WHO ARE THE FUNDS' INVESTMENT ADVISORS AND PORTFOLIO MANAGERS?
Strong Capital Management serves as the investment advisor for the EQUITY
INCOME FUND, GROWTH AND INCOME FUND, and SCHAFER BALANCED FUND. Schafer Capital
Management serves as the investment advisor to the SCHAFER VALUE FUND and as
investment subadvisor to the SCHAFER BALANCED FUND.
Rimas M. Milaitis, who joined Strong in December 1995, manages the EQUITY
INCOME FUND and the GROWTH AND INCOME FUND. He has 11 years of investment
experience. Before joining Strong, he was with Aon Advisors, where he managed
conservative equity portfolios for four years.
David K. Schafer is the portfolio manager of the SCHAFER BALANCED FUND and the
SCHAFER VALUE FUND. He has managed the Funds since their inceptions on December
31, 1997 and October 22, 1985, respectively. He has more than 30 years of
investment experience, and is president of Schafer Capital Management.
HOW CAN I BUY FUND SHARES?
There are several ways you can open a new account in
the Funds.
<PAGE>
- - BY MAIL: Complete and sign the application. Make your check or money order
payable to Strong Funds. Mail it to Strong Funds, P.O. Box 2936, Milwaukee,
WI 53201.
- - BY PHONE OR BY INTERNET: If you are a current Strong Funds shareholder and
choose exchange privileges, you can exchange shares from one Strong account
to open another.
You can also open an account in person or through a broker-dealer.
The minimum initial investment is $2,500 for a regular account, $500 for an
Education IRA, and $250 for an IRA or transfer or gift to minor account. If
you establish an Automatic Investment Plan (not available for Education IRAs)
of $50 or more per month, these minimums are waived. In any case, the minimum
for subsequent investments is $50. (For minimums on other retirement plans,
call 1-800-368-2882.)
HOW CAN I SELL FUND SHARES?
There are several ways you can redeem (sell) shares from the Fund.
- - BY MAIL: You can write a letter of instruction, including your account
number, the dollar amount or number of shares you wish to redeem, each
owner's name, your street address, and the signature of each owner. Mail it
to Strong Funds, P.O. Box 2936, Milwaukee, WI 53201.
- - BY PHONE OR BY INTERNET: If you choose redemption privileges, you can sell
shares by phone or through our web site.
You can also redeem shares in person, through a systematic withdrawal plan, or
through a broker-dealer.
DO THE FUNDS PAY OUT DIVIDENDS OR CAPITAL GAINS? HOW ARE THEY TAXED?
The Funds may earn income from dividends on stocks and interest on bonds in
their portfolios, and may realize capital gains from appreciation on their
holdings. The SCHAFER VALUE FUND intends to declare income and capital gains to
shareholders annually. The other Funds intend to declare income quarterly, and
capital gains annually.
Unless you elect otherwise, distributions of income and capital gains will be
automatically reinvested in the Fund that paid them. These distributions are
taxable regardless of whether you reinvest them or take them in cash.
Income is taxable at ordinary federal income tax rates. Capital-gains
distributions are taxed at rates based on how long the assets were held by the
Fund. After the end of each calendar year, Strong sends shareholders a
statement of each Fund's income and capital gains distributions to assist in
tax preparation.
WHAT SERVICES DOES STRONG FUNDS PROVIDE?
Strong offers you a variety of ways to get information, monitor your
investments, and buy and sell shares.
- - Personal service from Strong Funds representatives 24 hours a day, 7 days a
week
- - Automated telephone service
- - Online transaction services
- - Automatic investment plans
- - Payroll direct deposit
- - Automatic exchange services
- - Systematic withdrawal plans
- - Retirement plans for individuals and corporations
Strong representatives can tell you more about each of these services, and can
also give you further information about buying and selling shares. Just call
1-800-368-3863 anytime, day or night.
<PAGE>
[PICTURE OF TELEPHONE]
To order a free prospectus kit,
CALL 1-800-368-1030
To learn more about our funds,
discuss an existing account,
or conduct a transaction,
call 1-800-368-3863.
If you are a
Financial Professional,
CALL 1-800-368-1683
[PICTURE OF STRONG WEB SITE ON COMPUTER]
Strong On-line
www.strong-funds.com
[STRONG LOGO]
STRONG FUNDS
P.O. Box 2936 Milwaukee, Wisconsin 53201
Strong Funds Distributors, Inc. 7750E98 EQP
