<PAGE>
THE STRONG
----------
CASH MANAGEMENT
FUNDS
====================================
SEMI-ANNUAL REPORT o AUGUST 31, 1998
====================================
THE STRONG ADVANTAGE FUND
THE STRONG MUNICIPAL ADVANTAGE FUND
THE STRONG HERITAGE MONEY FUND
THE STRONG INVESTORS MONEY FUND
THE STRONG MUNICIPAL MONEY MARKET FUND
[PHOTO OF STRONG FUNDS BUILDING]
[STRONG LOGO]
STRONG FUNDS
<PAGE>
8
EIGHT BASIC PRINCIPLES FOR SUCCESSFUL MUTUAL FUND INVESTING
These common-sense rules are followed by many successful investors. They make
sense for beginners, too. If you have a question on these principles, or would
like to discuss them with us, please contact us at 1-800-368-3863. We're here
24 hours a day, seven days a week to take your call.
- -------------------------------------------------------------------------------
[PICTURE OF FOLDER LABELED INVESTMENTS]
1. HAVE A PLAN. Even a simple plan can help you take control of your financial
future. Review your plan once a year, or if your circumstances change.
- -------------------------------------------------------------------------------
[PICTURE OF CLOCK]
2. START INVESTING AS SOON AS POSSIBLE. Make time a valuable ally. Let it put
the power of compounding to work for you, while helping to reduce your
potential investment risk.
- -------------------------------------------------------------------------------
[PICTURE OF PIE CHART OF ASSET DIVERSIFICATION]
3. DIVERSIFY YOUR PORTFOLIO. By investing in different asset classes - stocks,
bonds, and cash - you help protect against poor performance in one type of
investment while including investments most likely to help you achieve your
important goals.
- -------------------------------------------------------------------------------
[PICTURE OF MEMO REMINDER TO INVEST]
4. INVEST REGULARLY. Investing is a process, not a one-time event. By
investing regularly over the long term, you reduce the impact of short-term
market gyrations, and you attend to your long-term plan before you're tempted
to spend those assets on short-term needs.
- -------------------------------------------------------------------------------
[PICTURE OF GRAPH SLOPING UPWARD]
5. MAINTAIN A LONG-TERM PERSPECTIVE. For most individuals, the best discipline
is staying invested as market conditions change. Reactive, emotional investment
decisions are all too often a source of regret - and of principal loss.
- -------------------------------------------------------------------------------
[PICTURE OF PIE CHART OF ASSET DIVERSIFICATION EMPHASIZING STOCKS]
6. CONSIDER STOCKS TO HELP ACHIEVE MAJOR LONG-TERM GOALS. Over time, stocks
have provided the more powerful returns needed to help the value of your
investments stay well ahead of inflation.
- -------------------------------------------------------------------------------
[PICTURE OF DOLLAR SIGN]
7. KEEP A COMFORTABLE AMOUNT OF CASH IN YOUR PORTFOLIO. To meet current needs,
including emergencies, use a money market fund or a bank account - not your
long-term investment assets.
- -------------------------------------------------------------------------------
[PICTURE OF MAGNIFYING GLASS]
8. KNOW WHAT YOU'RE BUYING. Make sure you understand the potential risks and
rewards associated with each of your investments. Ask questions...request
information...make up your own mind. And choose a fund company that helps you
make informed investment decisions.
<PAGE>
THE STRONG
----------
CASH MANAGEMENT
FUNDS
====================================
SEMI-ANNUAL REPORT o AUGUST 31, 1998
====================================
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 Municipal Money Market Fund..................................10
FINANCIAL INFORMATION
Schedules of Investments in Securities
The Strong Advantage Fund...........................................12
The Strong Municipal Advantage Fund.................................16
The Strong Heritage Money Fund......................................24
The Strong Investors Money Fund.....................................28
The Strong Municipal Money Market Fund..............................31
Statements of Assets and Liabilities....................................40
Statements of Operations................................................41
Statements of Changes in Net Assets.....................................42
Notes to Financial Statements...........................................44
FINANCIAL HIGHLIGHTS.........................................................47
<PAGE>
=========================
THE STRONG ADVANTAGE FUND
=========================
OUR DECISION TO INCREASE CREDIT QUALITY AND AVOID EXPOSURE TO SECTORS THAT WOULD
BE ADVERSELY AFFECTED BY A SLOWDOWN IN GLOBAL DEMAND...HAS FAVORABLY IMPACTED
OUR PERFORMANCE.
The Strong Advantage Fund seeks current income with a very low degree of
share-price fluctuation. The Fund invests primarily in ultra short-term,
investment-grade debt obligations, and its average effective maturity will
normally be one year or less.
POSITIONED TO MEET A CHANGING MARKET
In our last report to shareholders dated February 28, 1998, we expressed our
forecast for the financial market environment over the ensuing six to 12 months.
We looked for continuation of a strong economic environment in the U.S., a
Federal Reserve that would maintain a stable target for the Federal Funds rate
and, in turn, longer-term interest rates that would exhibit modest volatility.
Finally, we expected a good environment for higher-quality corporate and
mortgage bonds. At the same time, however, we noted the possibility of a growing
impact from the Asian financial crisis on markets around the globe. Our response
was to upgrade the Strong Advantage Fund's overall credit quality and to avoid
investments in sectors that would be the most affected by a slowdown in global
demand or a spillover of Asian instability.
============================================
PORTFOLIO STATISTICS
============================================
As of 8-31-98
30-DAY ANNUALIZED YIELD(2) 6.14%
AVERAGE EFFECTIVE MATURITY(3) 1.0 YEARS
AVERAGE QUALITY RATING(4) A
============================================
=======================================================
ASSET ALLOCATION
=======================================================
Based on net assets as of 8-31-98
[PIE CHART]
Corporate Bonds 48.2%
Non-Agency Mortgage and Asset-Backed Securities 28.9%
Short-Term Investments 12.0%
U.S. Government and Agency Issues 9.5%
Preferred Stocks 1.4%
This allocation does not reflect any futures positions
held by the Fund.
=======================================================
While the U.S. economy remained strong in the first half of 1998 with Gross
Domestic Product above 3.0%, the instability in the Asian economies began to
spread to other parts of the globe, specifically Russia and several Latin
American countries. After being mostly insulated from global events in the
first half of the year, the U.S. financial markets finally succumbed to the
global turmoil in August. The equity markets were hardest hit, with the S&P 500
Stock Index down 14.46% for the month of August. In the bond markets, a "flight
to quality" took place as investors stampeded into U.S. Treasury securities. The
long period of range-bound Treasury yields and stable credit spreads was
interrupted as U.S. Treasury yields declined about 1/2 of 1% on average across
the maturity spectrum in August, leaving 2-year note yields at 4.78%.
In contrast, yields on most corporate bonds remained unchanged or actually rose
during the month, producing the greatest total return divergence between
Treasuries and corporate bonds since October of 1990. Consequently, the yield
advantage of corporate bonds compared to the yield of U.S. Treasuries is now at
levels last seen in late 1991--a period when the U.S. economy was emerging from
a recession. Interest rate volatility also increased, which adversely affected
the mortgage bond market. However, due to their higher credit quality, the
effects on mortgages were less dramatic.
A LOOK AT PERFORMANCE
Our decision to increase credit quality and avoid exposure to sectors that would
be adversely affected by a slowdown in global demand, such as Yankee bonds
(which are issued by foreign companies) or cyclical industrial and commodity
producing companies, has favorably impacted our performance. At the same time,
in a market environment where investors flee to the safety and liquidity of
U.S. Treasury securities and indiscriminately sell any and all corporate or
mortgage bonds, our overweight in these sectors adversely affected our
performance. For the month of August, our total return was -0.15%, only the
sixth month out of 117 months since the inception of the Advantage Fund in which
we have posted a negative total return. Put into context, Lipper Analytical
Services, Inc. shows the Fund's 12-month total return ending August 31 of 5.39%
compares favorably with the average money market return of 4.96%; the Fund's
six-month return of 2.48% was also slightly above the average money market
return of 2.45%.
LOOKING AHEAD
The current pricing of the Treasury market implies that the Federal Reserve will
reduce interest rates meaningfully in the near future, while credit spreads (the
yield on corporate or mortgage securities versus a comparable Treasury security)
imply a dramatic slowdown in the U.S. economy. Recent financial market behavior
has led to a growing chorus favoring an immediate reduction in short-term
interest rates by the Federal Reserve. Currently, the housing and
2
<PAGE>
auto markets remain very strong, and real wage growth likewise is accelerating.
However, signs of slowing have appeared in the manufacturing sector. The Central
Bank will lower interest rates when signs of a slowdown become more broadly
based--which could take a few months--or alternatively if the U.S. stock market
trades down dramatically from current levels. If the Federal Reserve responds to
additional significant weakness in global financial markets, it likely will be
in concert with other G7 (the seven largest industrial countries) central banks
attempting to arrest a global slide. We believe that such a coordinated
intervention would result in favorable performance from the corporate bond
sector. In fact, it is our view that corporate bonds represent an attractive
value at current levels.
As of the end of the period, we have extended the Strong Advantage Fund's
duration to about 0.75 years. We continue to selectively increase the credit
quality of the Fund, and have added exposure in sectors that would benefit from
a reduction in the Federal Funds rate. In the long term, history tells us that
income is the key determinant of returns in shorter-duration fixed income
products. Therefore, with credit spreads now reflecting levels last seen in a
recessionary environment, we will maintain our exposure to corporate and
mortgage bonds. We are confident that our efforts, combined with the efforts of
our research team, can seek out investments that will allow the Strong Advantage
Fund to continue to perform in the manner in which you have come to expect.
Thank you for your continued confidence in the Strong Advantage Fund.
Sincerely,
/s/ Jeffrey A. Koch
Jeffrey A. Koch
/s/ Lyle J. Fitterer
Lyle J. Fitterer
Portfolio Co-managers
[PHOTO OF JEFFREY A. KOCH AND LYLE J. FITTERER]
===============================================================================
GROWTH OF AN ASSUMED $10,000 INVESTMENT
===============================================================================
From 11-25-88 to 8-31-98
[GRAPH]
Lipper Ultra
THE STRONG 1-Year Short Obligation
ADVANTAGE FUND Treasury Bill* Average*
10-88 10,000 10,000 10,000
12-88 10,103 10,039 10,079
12-89 11,052 11,050 11,006
12-90 11,784 12,036 11,872
12-91 13,036 13,088 12,726
12-92 14,135 13,720 13,260
12-93 15,250 14,245 13,802
12-94 15,793 14,621 14,220
12-95 16,978 15,804 15,195
12-96 18,112 16,698 16,030
12-97 19,290 17,719 16,939
8-98 19,962 18,458 17,557
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with similar investments in the
Salomon Brothers 1-Year Treasury Benchmark-on-the-Run Index ("1-Year Treasury
Bill") and the Lipper Ultra Short Obligation Average. Results include the
reinvestment of all dividends and capital gains distributions. Performance is
historical and does not represent future results. Investment returns and
principal value will vary, and you may have a gain or loss when you sell shares.
To equalize the time periods, the indexes' performance was prorated for the
month of November 1988.
================================================================================
==================================
AVERAGE ANNUAL
TOTAL RETURNS(1)
==================================
As of 8-31-98
1-YEAR 5.39%
3-YEAR 6.32%
5-YEAR 6.03%
SINCE INCEPTION 7.34%
(on 11-25-88)
==================================
* The Salomon Brothers 1-Year Treasury Benchmark-on-the-Run Index ("1-Year
Treasury Bill") is an unmanaged index generally representative of the average
yield on One-Year Treasury Bills. The Lipper Ultra Short Obligation Average
represents funds that invest at least 65% of their assets in investment-grade
debt issues, or better, and maintain a portfolio dollar-weighted average
maturity between 91 days and 365 days. Source of the Salomon index data is
Standard & Poor's Micropal. Source of the Lipper index data is Lipper
Analytical Services, Inc.
1 Average annual total return and total return measure change in the value of
an investment in the Fund, assuming reinvestment of all dividends and capital
gains. Average annual total return reflects annualized change, while total
return reflects aggregate change.
2 Yield is annualized for the 30 days ended 8-31-98, is historical, and will
vary.
3 The Fund's average effective maturity includes the effect of futures and
options.
4 For purposes of this average rating, the Fund's short-term debt obligations
have been assigned a long-term rating by the Advisor.
3
<PAGE>
===================================
THE STRONG MUNICIPAL ADVANTAGE FUND
===================================
AS IT HAS IN THE PAST, THE FUND'S YIELD EXCEEDS THOSE OF MUNICIPAL MONEY FUNDS
BY A CONSIDERABLE MARGIN.
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
ultra-short-term, investment-grade municipal obligations and normally maintains
an average effective maturity of one year or less.
This is the first mutual fund to combine the benefits of ultra-short bonds with
the tax advantages of municipal investing. Unlike money funds, which seek to
maintain a $1.00 share price, the Fund does allow for a small degree of
share-price fluctuation. This allows it to pursue higher yields and returns than
tax-free money funds.
CONTINUED STRONG PERFORMANCE
For the six months ended August 31, 1998, Lipper Analytical Services, Inc.
ranked the Fund #10 out of 32 short-term municipal debt funds based on total
return. For the period since the Fund's inception, it ranked #4 out of 31 funds.
Because of our unique investment approach, we are not ranked with comparable
funds. Although we limit maturity to one year, our Lipper category includes
funds with maturities of up to three years--which we believe makes our high
rankings particularly notable.(1)
==========================================
PORTFOLIO STATISTICS
==========================================
As of 8-31-98
30-DAY ANNUALIZED YIELD(3) 3.87%
AVERAGE EFFECTIVE MATURITY(4) 0.9 YEARS
AVERAGE QUALITY RATING(5) A
==========================================
As of August 31, 1998, the Fund's 30-day current yield stood at 3.87%. For
investors in the 36% tax bracket, the taxable equivalent yield was 6.05%. As it
has in the past, the Fund's yield exceeds those of municipal money funds by a
considerable margin. We believe this is an attractive benefit for investors with
cash assets that don't require absolute stability of principal. We're happy to
have delivered that premium while only experiencing a $0.02 fluctuation in the
Fund's net asset value over the past six months.
================================================================================
EQUIVALENT TAXABLE YIELDS
================================================================================
As of 8-31-98
YOUR TAX-EXEMPT EFFECTIVE
MARGINAL YIELD OF 3.87% IS EQUIVALENT
JOINT RETURN SINGLE RETURN TAX RATE TO A TAXABLE YIELD OF:
- --------------------------------------------------------------------------------
$42,351-102,300 $25,351-61,400 28.0% 5.38%
................................................................................
$102,301-155,950 $61,401-128,100 31.0% 5.61%
................................................................................
$155,951-278,450 $128,101-278,450 36.0% 6.05%
................................................................................
Over $278,450 Over $278,450 39.6% 6.41%
................................................................................
The chart reflects 1998 marginal federal tax rates before limitations and
phase-outs. Individuals with adjusted gross income in excess of $124,500
should consult their tax advisor to determine their actual 1998 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.
================================================================================
A LOOK AT THE PAST SIX MONTHS
Our primary challenge in the past six months has been to keep the Fund's yield
attractive in an environment of declining interest rates. Over the period, we
saw a fairly steady decline in short-term interest rates. In August, this
decline became particularly steep, as investors sought bonds as a refuge from
that month's extreme stock volatility.
We've kept the Fund's maturity near its 360-day maximum, a continuation of a
trend from the previous fiscal year. For the six months, the Fund posted a
return of 2.38%.(2)
WE EMPHASIZE QUALITY AND LIQUIDITY
To avoid incurring undue risk--and because we're aware that many of our
investors use this Fund to address short-term needs--we've continued to
emphasize liquidity when selecting issues for the Fund. Only a very small
portion (3%) of the Fund is invested in non-investment-grade issues. We've been
moving the Fund's credit quality up somewhat, a boon during the recent flight to
quality that has hit the markets. Although the Fund's overall credit rating
remains unchanged at A, we have moved it steadily closer to a AA rating.
We've also continued to keep a significant portion of the Fund's assets in daily
and weekly issues. Keeping about a third of assets in these highly liquid,
low-volatility securities serves to steady the Fund's NAV.
OPPORTUNITIES FOR YIELD
Bonds of higher quality and greater liquidity almost by definition will have
lower yields than those with lower credit grades and that trade less readily. To
offset this effect without incurring undue risk, we have continued to work with
smaller, regional brokerages as well as large, established Wall Street firms in
selecting issues for the Fund. These specialized brokers often sponsor issues
with slightly higher yields.
Also in an effort to improve yield while remaining true to our character, we
still invest significant assets in bonds whose income may be subject to the
Alternative Minimum Tax. To reject these issues out of hand would cut our
shareholders off from many of the market's more attractive securities. We aren't
4
<PAGE>
by any means oblivious to the tax implications of these holdings for some of our
shareholders, but believe that overall the benefits outweigh the costs.
LOOKING TO THE NEXT SIX MONTHS
Over the past six months, talk of the Federal Reserve's easing interest rates
has grown, reaching new intensity toward the end of the period. It's apparent
that the Fed's priority is shifting away from controlling inflation and toward
keeping the economy moving.
Asia's well-documented woes have now been joined by difficulties in Russia and
Latin America. These troubles have combined to put the brakes on the growth of
the world's economies. It's our belief that these problems are not yet fully
reflected in the American economy and markets, and that more slowing and
further declines in interest rates may be on the way.
We anticipate keeping our maturity longer than the norm. However, we don't
intend to significantly change our investment approach unless interest rates
take an unusually sharp or unforeseen turn.
We appreciate the continued confidence our shareholders have shown. Assets now
total more than $1.4 billion. We have been able to invest these strong cash
inflows in municipal securities that meet our ultra-short mandate, deliver
attractive yield, and satisfy our demand for quality. We are dedicated to these
three objectives.
We thank you for the opportunity to serve your investment needs, and look
forward to helping you pursue your financial goals for years to come.
Sincerely,
/s/ Steven D. Harrop
Steven D. Harrop
Portfolio Manager
[PHOTO OF STEVEN D. HARROP]
===============================================================================
GROWTH OF AN ASSUMED $10,000 INVESTMENT
===============================================================================
From 11-30-95 to 8-31-98
[GRAPH]
THE STRONG Lehman Brothers Lipper Short
MUNICIPAL ADVANTAGE Municipal 1-Year Municipal Debt
FUND Bond Index* Funds Index*
11-95 10,000 10,000 10,000
12-95 10,086 10,038 10,041
6-96 10,272 10,226 10,155
12-96 10,577 10,474 10,416
6-97 10,831 10,701 10,637
12-97 11,117 10,960 10,918
6-98 11,360 11,200 11,139
8-98 11,462 11,305 11,255
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with similar investments in the
Lehman Brothers Municipal 1 Year Bond Index and the Lipper Short Municipal Debt
Funds Index. Results include the reinvestment of all dividends and capital
gains distributions. Performance is historical and does not represent future
results. Investment returns and principal value vary, and you may have a gain
or loss when you sell shares.
================================================================================
==================================
AVERAGE ANNUAL
TOTAL RETURNS(2)
==================================
As of 8-31-98
1-YEAR 5.04%
SINCE INCEPTION 5.09%
(on 11-30-95)
==================================
* 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
Analytical Services, Inc.
1 From time to time, the Fund's Advisor has waived its management fee, which
has resulted in higher returns.
2 Average annual total return and total return measure change in the value of
an investment in the Fund, assuming reinvestment of all dividends and capital
gains. Average annual total return reflects annualized change, while total
return reflects aggregate change.
3 Yield is annualized for the 30 days ended 8-31-98, is historical, and will
vary. The Fund's Advisor has waived its management fee of 0.04% and absorbed
expenses of 0.09%. Otherwise, current yield would have been 3.74% and returns
would have been lower.
4 The Fund's average effective maturity includes the effect of when-issued
securities.
5 For purposes of this average rating, the Fund's short-term debt obligations
have been assigned a long-term rating by the Advisor.
5
<PAGE>
==============================
THE STRONG HERITAGE MONEY FUND
==============================
SUCCESS AT AVOIDING PROBLEM SECTORS, AN APPROPRIATE AVERAGE MATURITY POSTURE,
AND A LOW EXPENSE RATIO HAVE ALLOWED THE FUND TO DELIVER ITS PERFORMANCE.
The Strong Heritage Money Fund seeks current income, a stable share price, and
daily liquidity. The Fund invests in corporate, bank, and government instruments
that present minimal credit risk.(1)
RECENT PERFORMANCE
The Strong Heritage Money Fund performed well over the six months ended August
31, 1998, providing a safe haven from the sometimes violent movements in the
equity and bond markets. The Fund continues to generate an attractive total
return, ranking #5 among 305 money funds for the 12-month period ended August
31, 1998, and #10 out of 313 money funds for the 6-month period, according to
Lipper Analytical Services, Inc. Since its inception in June 1995, the Fund
ranked #2 among 256 funds, for the same ending period.(2) We are proud of the
results we have delivered for the Fund's shareholders and remain dedicated to
managing the fund for attractive yield and stability of principal.
===================================
YIELD SUMMARY(3)
===================================
As of 8-31-98
7-DAY CURRENT YIELD 5.39%
7-DAY EFFECTIVE YIELD 5.53%
AVERAGE MATURITY 59 DAYS
===================================
INTEREST RATE TRENDS
During the first six months of the Fund's fiscal year long-term interest rates
dropped substantially, falling from about 6.0% at the beginning of March to
about 5.25% at the end of August. Long- and intermediate-term rates declined in
response to dislocations in global financial markets, including the continuing
economic crisis that has engulfed the emerging markets of Asia and the fiscal
collapse of Russia. During these stressful times investors have sought out the
relative safety of U.S. Treasury securities, pushing down bond yields and
bidding up prices. The global turmoil that began more than a year ago with the
devaluation of the Thai currency has now lapped at the doorways of Wall Street,
causing a significant correction in the valuation of the U.S. stock market. This
correction added to the "flight to quality" syndrome that has propelled Treasury
yields lower.
The yields of money market instruments, however, have been largely unaffected by
the drop in Treasury yields. The interest rates on commercial paper, CDs, and
notes purchased by the Strong Heritage Money Fund have remained remarkably
stable during this period. This is largely due to the firm anchor of the Federal
Funds rate, which has remained at 5.50% since March 1997. Indeed, the typical
money market instrument now yields slightly more than the typical Treasury
security of any maturity. It can be inferred that the current pricing of the
Treasury market anticipates a movement by the Federal Reserve to lower its
short-term rate targets in the near future.
STRATEGIC POSITIONING
As always, we have invested the assets of the Strong Heritage Money Fund in
response to interest rate trends, shifts in term structure, and movements in
quality spreads over the last six months. We have targeted a longer-than-neutral
average maturity in the belief that a rate cut by the Fed is now a realistic
possibility, while the chances of a move to tighter monetary policy are
extremely remote. Although movement by the Fed may still be weeks or months
away, it is increasingly likely that a shift to a lower Fed Funds rate target
will occur. Money market rates remained relatively flat during this six-month
6
<PAGE>
period, causing us to refrain from a significant emphasis on one part of the
yield curve versus another.
With regard to sector emphasis and credit quality, the global movement to
embrace lower-risk assets has led us to be extremely cautious about the sectors
and individual issues we choose as investments for the Fund. Effective credit
analysis is most critical during troubled markets. Success at avoiding problem
sectors, an appropriate average maturity posture, and a low expense ratio have
allowed the Fund to deliver its performance.
OUTLOOK
We believe that the U.S. economy will continue to perform better than that of
most nations around the globe in coming months. If the Federal Reserve had no
concern other than the domestic economy, it is likely that no easing move would
be contemplated. However, the effect of global dislocations on our trade sector
that are negative for growth, and the impact of cheaper imports which lower
domestic inflation, will be factors in the Fed's deliberations in upcoming
meetings. Our projection is that the Fed will opt for easier monetary policy in
the months ahead, possibly embarking on the rate-cutting path as soon as the
September 29, 1998 Federal Open-Market Committee meeting. With the fundamentals
suggesting lower money market rates rather than higher, we plan to continue
pursuing a longer-than-neutral-average maturity posture. Mindful that the
volatility which has led to a flight to quality may well continue for the
intermediate term, we intend to maintain our focus on high quality, and
thorough credit analysis.
The Strong Heritage Money Fund is designed to provide stable principal value and
a competitive income level for investors who desire to shield a portion of their
assets from the volatility of the stock and bond markets. The recent turmoil in
financial markets underscores the value of a money market fund to the
individual investor.
We thank you for your investment in the Fund and look forward to continuing to
help you meet your financial goals.
Cordially,
/s/ Jay N. Mueller
Jay N. Mueller
Portfolio Manager
[PHOTO OF JAY N. MUELLER]
============================
3-MONTH TREASURY BILL YIELDS
============================
As of 8-31-98
[GRAPH]
8-97 5.22%
9-97 5.10%
10-97 5.20%
11-97 5.20%
12-97 5.35%
1-98 5.18%
2-98 5.31%
3-98 5.12%
4-98 4.97%
5-98 5.01%
6-98 5.08%
7-98 5.07%
8-98 4.83%
Source: Bloomberg
============================
1 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.
2 The since inception ranking is based on performance from 6-30-95 to 8-31-98
for money market funds tracked by Lipper. From time to time, the Fund's
advisor has waived its management fee, which has resulted in higher returns.
Without these waivers the rankings may have been lower.
3 Yields are annualized for the 7-day period ended 8-31-98. Effective yields
reflect the compounding of income. Yields and rankings are historical and do
not represent future results. Yields will fluctuate. The Fund's Advisor
temporarily waived 0.20% in management fees and absorbed 0.08% in expenses for
the Fund. Otherwise, the Fund's current yield would have been 5.11%, and its
effective yield would have been 5.24%.
7
<PAGE>
===============================
THE STRONG INVESTORS MONEY FUND
===============================
THE RECENT TURMOIL IN FINANCIAL MARKETS UNDERSCORES THE VALUE OF A MONEY MARKET
FUND TO THE INDIVIDUAL INVESTOR.
The Strong Investors Money Fund seeks current income, a stable share price, and
daily liquidity. The Fund invests in corporate, bank, and government instruments
that present minimal credit risk.(1)
Recently, the Fund (formerly known as the Strong Step 1(SM) Money Fund) was
renamed the Strong Investors Money Fund. We believe this name more clearly
identifies the Fund's objective of offering an attractive yield along with money
market stability.
RECENT PERFORMANCE
The Strong Investors Money Fund performed well over the six months ended August
31, 1998, providing a safe haven from the sometimes violent movements in the
equity and bond markets. The Fund continues to generate the nation's top-ranked
yield. It also ranks #1 among 313 money funds for the period since its inception
in January of this year through August 31, 1998, based on total return,
according to Lipper Analytical Services, Inc.(2) We are proud of the results we
have delivered for the Fund's shareholders and remain dedicated to managing the
Fund for attractive yield and stability of principal.
===================================
YIELD SUMMARY(2)
===================================
As of 8-31-98
7-DAY CURRENT YIELD 5.68%
7-DAY EFFECTIVE YIELD 5.84%
AVERAGE MATURITY 57 DAYS
===================================
INTEREST RATE TRENDS
During the first six months of the Fund's fiscal year, long-term interest rates
dropped substantially, falling from about 6.0% at the beginning of March to
about 5.25% at the end of August. Long- and intermediate-term rates declined in
response to dislocations in global financial markets, including the continuing
economic crisis that has engulfed the emerging markets of Asia and the fiscal
collapse of Russia. During these stressful times investors have sought out the
relative safety of U.S. Treasury securities, pushing down bond yields and
bidding up prices. The global turmoil that began more than a year ago with the
devaluation of the Thai currency has now lapped at the doorways of Wall Street,
causing a significant correction in the valuation of the U.S. stock market.
This correction added to the "flight to quality" syndrome that has propelled
Treasury yields lower.
The yields of money market instruments, however, have been largely unaffected by
the drop in Treasury yields. The interest rates on commercial paper, CDs, and
notes purchased by the Strong Investors Money Fund have remained remarkably
stable during this period. This is largely due to the firm anchor of the Federal
Funds rate, which has remained at 5.50% since March 1997. Indeed, the typical
money market instrument now yields slightly more than the typical Treasury
security of any maturity. It can be inferred that the current pricing of the
Treasury market anticipates a movement by the Federal Reserve to lower its
short-term rate targets in the near future.
STRATEGIC POSITIONING
As always, we have invested the assets of the Strong Investors Money Fund in
response to interest rate trends, shifts in term structure, and movements in
quality spreads over the last six months. We have targeted a longer-than-neutral
average maturity in the belief that a rate cut by the Fed is now a realistic
possibility, while the chances of a move to tighter monetary policy are
extremely remote. Although movement by the Fed may still be weeks or months
away, it is increasingly likely that a shift to a lower Fed Funds rate target
will occur. Money market rates remained relatively flat during this six-month
period, causing us to refrain from a significant emphasis on one part of the
yield curve versus another.
With regard to sector emphasis and credit quality, the global movement to
embrace lower-risk assets has led us to be extremely cautious about the sectors
8
<PAGE>
and individual issues we choose as investments for the Fund. Effective credit
analysis is most critical during troubled markets. Success at avoiding problem
sectors, an appropriate average maturity posture, and a waiver of fees have
allowed the Fund to deliver its performance.
OUTLOOK
We believe that the U.S. economy will continue to perform better than that of
most nations around the globe in coming months. If the Federal Reserve had no
concern other than the domestic economy, it is likely that no easing move would
be contemplated. However, the effect of global dislocations on our trade sector
that are negative for growth, and the impact of cheaper imports which lower
domestic inflation, will be factors in the Fed's deliberations in upcoming
meetings. Our projection is that the Fed will opt for easier monetary policy in
the months ahead, possibly embarking on the rate-cutting path as soon as the
September 29, 1998 Federal Open-Market Committee meeting. With the fundamentals
suggesting lower money market rates rather than higher, we plan to continue
pursuing a longer-than-neutral average maturity posture. Mindful that the
volatility which has led to a flight to quality may well continue for the
intermediate term, we intend to maintain our focus on high quality, and
thorough credit analysis.
The Strong Investors Money Fund is designed to provide stable principal value
and a competitive income level for investors who desire to shield a portion of
their assets from the volatility of the stock and bond markets. The recent
turmoil in financial markets underscores the value of a money market fund to
the individual investor.
We thank you for your investment in the Fund and look forward to continuing to
help you meet your financial goals.
Cordially,
/s/ Jay N. Mueller
Jay N. Mueller
Portfolio Manager
[PHOTO OF JAY N. MUELLER]
============================
3-MONTH TREASURY BILL YIELDS
============================
As of 8-31-98
[GRAPH]
8-97 5.22%
9-97 5.10%
10-97 5.20%
11-97 5.20%
12-97 5.35%
1-98 5.18%
2-98 5.31%
3-98 5.12%
4-98 4.97%
5-98 5.01%
6-98 5.08%
7-98 5.07%
8-98 4.83%
Source: Bloomberg
============================
1 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.
2 Yields are annualized for the 7-day period ended 8-31-98. Effective yields
reflect the compounding of income. Yields and rankings are historical and do
not represent future results. Yields will fluctuate. The Fund's Advisor
temporarily waived 0.50% in management fees and absorbed 0.55% in expenses for
the Fund. Otherwise, the Fund's current yield would have been 4.63%, and its
effective yield would have been 4.74%.
9
<PAGE>
======================================
THE STRONG MUNICIPAL MONEY MARKET FUND
======================================
OVER THE SIX MONTHS, WE SAW A FAIRLY STEADY DECLINE IN MONEY MARKET INTEREST
RATES.
The Strong Municipal Money Market Fund seeks federally tax-exempt current
income, a stable share price, and daily liquidity. The Fund invests in
high-quality, short-term municipal obligations that present minimal credit
risk.(1)
Our goal is to provide a steady stream of tax-exempt income, consistent with our
objective of a stable share price and daily liquidity. This Fund can offer a
conservative vehicle for a portion of an investor's assets while still making a
contribution to the returns of a balanced portfolio.
CONTINUED OUTPERFORMANCE
As of August 31, 1998, the Municipal Money Market Fund's 7-day current yield was
3.34%. Its 7-day effective yield--which reflects compounding--was 3.40%. For
investors in the 36% tax bracket, that translates into a taxable equivalent
yield of 5.31%.(2)
===================================
YIELD SUMMARY(2)
===================================
As of 8-31-98
7-DAY CURRENT YIELD 3.34%
7-DAY EFFECTIVE YIELD 3.40%
AVERAGE MATURITY 48 DAYS
===================================
That strong yield has helped the Fund to continue its history of high rankings
from Lipper Analytical Services, Inc. For the six months ended August 31, 1998,
the Fund earned a #2 ranking among 134 tax-exempt money-market funds tracked by
Lipper, based on total return. The Fund received #1 rankings for the five-year,
ten-year, and since-inception periods (out of 102, 69, and 55 funds,
respectively) and a #2 ranking for the one- year period out of 132 funds.(3)
A LOOK AT THE PAST SIX MONTHS
Over the six months ended August 31, we saw a fairly steady decline in money
market interest rates, aside from a seasonal increase in April. This continues a
trend from the close of the previous fiscal year, and mirrors the overall
fixed-income market. At the very end of the six-month period, rates took a steep
drop, as volatile markets saw investors move assets out of stocks. The resulting
demand for higher-quality fixed-income investments has driven bond prices up,
and yields down.
In this environment, we continued to keep the Fund's maturity a bit longer than
the market average. This positioning allowed the Fund to continue to deliver
appealing tax-exempt yields in the face of declining rates. We don't take the
Fund out longer than is prudent for a money-market offering, but we do take
steps to support yield within the bounds of money fund stability and liquidity.
A STRATEGY SUITED TO THIS ENVIRONMENT
Over the past six months, we've kept our investment strategy substantially
intact. We continue to work with smaller, regional brokerages, as well as
large, established Wall Street firms. To attract market attention, the smaller
houses often offer higher yields on their issues, as they don't have the benefit
of a well-known name to draw investors.
We also continue to consider issues subject to the Alternative Minimum Tax
(AMT). As we move further and further away from 1986, the year that tax-law
changes created AMT paper, the issuance of securities that aren't subject to the
AMT diminishes. Rather than limit the Fund--and our shareholders--to that
dwindling asset class, we choose to give investors the opportunities that the
broader municipal market offers. We are, of course, sensitive to the taxes our
shareholders must pay. But by selecting what we consider to be the best
securities available, including AMT paper, we believe we can add more value--
even taking taxes into account--than would be possible if we rejected AMT issues
entirely.
Over the past six months, we were able to benefit from pooled security trusts
offered by larger banks and brokerage firms. These securities offer both AA or
AAA credit quality and first-tier liquidity--the highest levels available. These
securities are created to take advantage of a steeper yield curve by placing
longer-term, higher-yielding securities in a pool and providing a short-term
liquidity feature on that pool. Our approach in this area has been both
selective and successful, allowing us to pursue very short-term investments at
yields somewhat above general market levels.
10
<PAGE>
CONTINUING TO PRESERVE LIQUIDITY
In all of the issues we select for the portfolio, we continue to emphasize
liquidity--as we should in a money-market fund. Tax-exempt income is important
to our shareholders, but for many a money-market fund serves as a safe parking
place for cash, particularly in volatile times. We have slightly increased our
position in daily and weekly issues, with more than two-thirds of assets now
invested in such securities. These issues can be readily converted to cash to
meet investors' needs for liquidity.
We limit our position in daily issues to an amount that allows us to easily
meet daily demands for cash. Weekly issues are almost as liquid, but deliver a
higher yield than dailies. This positioning is another way we strive to improve
yield without compromising money-market safety.
EXPECTATIONS FOR THE NEXT SIX MONTHS
Over the past six months, talk of the Fed easing interest rates has grown,
heightening toward the end of the period. Although there's been no action so
far, it seems that the Fed's priority is in fact shifting away from controlling
inflation and toward keeping the economy moving.
Indeed, Asia's continued woes--now joined by turmoil in Russia and weakness in
Latin America--have served as a brake on the growth of the world's economies.
It's our belief that these problems are not yet fully reflected in the American
economy and markets, and that more slowing, and further declines in interest
rates, may be on the way.
In these conditions, we anticipate keeping our maturity longer than the norm.
Unless interest rates take an unusually sharp turn, we don't intend to make
significant changes to our investment strategy. In an effort to deliver
attractive yields despite declining interest rates, we'll continue to
incorporate issues from regional brokerages as well as AMT paper.
The markets' recent volatility serves as a strong reminder of the importance of
a cash component in every investor's portfolio. It's our goal to be the money
market fund of choice for municipal investors.
We'd like to thank you for your investment in the Strong Municipal Money Market
Fund. We look forward to continuing to help you pursue your important financial
goals.
Sincerely,
/s/ STEVEN D. HARROP
Steven D. Harrop
Portfolio Manager
[PHOTO OF STEVEN D. HARROP]
================================================================================
EQUIVALENT TAXABLE YIELDS
================================================================================
As of 8-31-98
YOUR TAX-EXEMPT EFFECTIVE
MARGINAL YIELD OF 3.87% IS EQUIVALENT
JOINT RETURN SINGLE RETURN TAX RATE TO A TAXABLE YIELD OF:
- --------------------------------------------------------------------------------
$42,351-102,300 $25,351-61,400 28.0% 4.72%
................................................................................
$102,301-155,950 $61,401-128,100 31.0% 4.93%
................................................................................
$155,951-278,450 $128,101-278,450 36.0% 5.31%
................................................................................
Over $278,450 Over $278,450 39.6% 5.63%
................................................................................
The chart reflects 1998 marginal federal tax rates before limitations and
phase-outs. Individuals with adjusted gross income in excess of $124,500
should consult their tax advisor to determine their actual 1998 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.
================================================================================
1 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.
2 Yields are annualized for the 7 days ended 8-31-98, are historical, and will
vary. Effective yield assumes reinvested income.
3 The since-inception ranking is based on performance from 10-31-86 to
8-31-98 for Tax-Exempt Money Market funds tracked by Lipper. From time to
time, the Fund's Advisor has waived its management fee, which has resulted in
higher returns. Source: Lipper Analytical Services, Inc.
11
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES AUGUST 31, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------
===============================================================================
STRONG ADVANTAGE FUND
===============================================================================
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
CORPORATE BONDS 48.0%
Advance Bank Australia Floating Rate
Subordinated Notes, 6.4375%, Due 3/14/06 $ 15,000,000 $ 15,000,000
Amerco Asset-Backed Bonds, 6.65%, Due
10/15/99 (Acquired 1/14/98; Cost $5,008,900) (b) 5,000,000 5,009,000
Atlas Air, Inc. Pass-Thru Trust Certificates,
12.25%, Due 12/01/02 9,800,000 10,685,381
Bank of Boston Capital Trust III Floating Rate
Capital Securities, 6.4375%, Due 6/15/27 10,000,000 9,733,570
Bank of Ireland Perpetual Floating Rate Junior
Subordinated Notes, 6.6875%, Due 9/29/49 5,000,000 4,893,750
Blackstone Hotel Acquisitions Company Debt
Unit (Medium Term Structured
Enhanced Return Trusts 1998), Series R-38,
6.5975%, Due 6/30/03 (Acquired 7/30/98;
Cost $26,000,000) (b) 26,000,000 25,983,880
CF Cable TV, Inc. Senior Secured Second Priority
Notes, 11.625%, Due 2/15/05 5,000,000 5,562,500
Caesars World, Inc. Senior Subordinated
Debentures, 8.875%, Due 8/15/02 1,700,000 1,738,250
Call-Net Enterprises, Inc. Senior Discount Notes,
Zero %, Due 12/01/04 (Rate Reset Effective
12/01/99) 6,965,000 6,581,925
Centennial Cellular Corporation Senior Notes,
8.875%, Due 11/01/01 4,945,000 5,105,713
Central Fidelity Capital Trust I Floating Rate
Notes, Series A, 6.6875%, Due 4/15/27 7,500,000 7,599,705
Chase Manhattan Corporation Floating Rate
Notes, 5.8125%, Due 12/30/09 45,920,000 44,140,600
Citicorp Floating Rate Notes:
Series W, 5.8125%, Due 11/27/35 10,000,000 9,200,000
Series X , 5.725%, Due 11/27/35 10,000,000 9,200,000
Cleveland Electric Linked Restructured Asset
Certificates with Enhanced Returns, Series
1997-C-X, 7.0875%, Due 6/01/01 (Acquired
7/14/97; Cost $18,000,000) (b) 18,000,000 17,842,500
Cort Furniture Rental Corporation Senior Notes,
12.00%, Due 9/01/00 15,570,000 16,659,900
DLJ Leveraged Loan Fund LLC/DLJ Leveraged
Loan Corporation Senior Secured Floating Rate
Notes, Series 1A, Class A2, 6.5175%, Due
3/15/05 (Acquired 8/07/98; Cost $7,000,000) (b) 7,000,000 7,000,000
Deeptech International Senior Notes, 12.00%,
Due 12/15/00 8,100,000 8,788,500
Delta Air Lines, Inc. Pass-Thru Trust Certificates,
Series 1993-A2, 10.50%, Due 4/30/16 11,601,000 15,786,931
Dime Bancorp, Inc. Senior Notes, 10.50%,
Due 11/15/05 56,472,000 59,577,960
Dual Drilling Company Senior Subordinated
Notes, 9.875%, Due 1/15/04 18,290,000 18,655,800
EOP Operating, LP Floating Rate Term Loan,
6.425%, Due 8/15/00 25,000,000 24,937,500
First Empire Capital Trust II Capital Securities,
8.277%, Due 6/01/27 8,000,000 8,901,560
First Maryland Capital I Variable Rate
Subordinated Capital Income Securities,
6.6875%, Due 1/15/27 19,500,000 19,320,483
Fort Howard Corporation Trust Pass-Thru
Certificates, Series 1991, 11.00%, Due 1/02/02 6,396,807 6,364,823
GS Escrow Corporation Floating Rate Senior
Notes, 6.75%, Due 8/01/03 (Acquired 7/30/98 -
8/04/98; Cost $112,622,500) (b) 113,000,000 110,866,108
HRPT Properties Trust Floating Rate Notes,
6.2875%, Due 7/09/07 37,830,000 37,840,592
HSB Capital I Floating Rate Securities, Series A,
6.6566%, Due 7/15/27 9,000,000 8,929,791
Halyard CBO I, Ltd./Halyard CBO Corporation
Senior Secured Floating Rate Notes, Series 1A,
Class A, 6.1909%, Due 3/24/10 (Acquired
3/12/98 - 7/14/98; Cost $38,641,237) (b) 38,700,000 38,627,631
Healthsouth Corporation Senior Subordinated
Notes, 9.50%, Due 4/01/01 23,785,000 24,617,475
Huntington Capital I Variable Rate Capital Income
Securities, 6.3875%, Due 2/01/27 28,500,000 27,754,241
Imperial Capital Trust I Guaranteed Capital
Securities, 9.98%, Due 12/31/26 5,300,000 6,297,624
Indspec Chemical Corporation Senior Subordinated
Discount Notes, Series B, Zero%, Due 12/01/03
(Rate Reset Effective 12/01/98) 22,571,000 23,389,199
Lehman Brothers LIBOR Indexed Trust Certificates,
Series 1997-C-5-1, 6.9375%, Due 6/15/00
(Acquired 4/24/97; Cost $20,000,000) (b) 20,000,000 19,875,000
Long Island Lighting Company Debentures,
8.90%, Due 7/15/19 16,850,000 17,874,918
Lyondell Chemical Company Guaranteed Term
Loan, Tranche B, 8.1875%, Due 6/30/05 5,000,000 5,006,250
Mashantucket Western Pequot Tribe Special Revenue
Bonds/Interest Rate Swap, 5.9675%, Due 9/01/12
(Acquired 9/16/97; Cost $32,655,014) (b) 30,000,000 31,500,000
Mercantile Capital Trust I Floating Rate Pass-Thru
Securities, 6.5375%, Due 2/01/27 10,000,000 10,004,170
Merrill Lynch Collateralized Bond Obligations:
Series 1996-C-1, 6.1875%, Due 7/07/06
(Acquired 3/12/98; Cost $8,013,600) (b) 8,000,000 8,004,000
Series 1996-C-2, 6.1375%, Due 11/07/06
(Acquired 3/12/98; Cost $7,000,000) (b) 7,000,000 7,000,000
Mohegan Tribal Gaming Authority Connecticut
Senior Secured Notes, Series B, 13.50%,
Due 11/15/02 30,365,000 38,108,075
NBD Bancorp, Inc. Subordinated Floating Rate
Notes, 5.875%, Due 12/18/05 24,530,000 24,478,879
NTC Capital Trust II Floating Rate Capital
Securities, 6.2775%, Due 4/15/27 23,805,000 23,163,217
NWA Trust Structured Enhanced Return Trusts
1998, 8.6906%, Due 4/15/11 25,000,000 25,012,500
National Commerce Capital Trust Floating Rate
Pass-Thru Securities, 6.6792%, Due 4/01/27 15,000,000 14,940,330
National Westminster Bank Floating Rate Notes,
6.4875%, Due 9/29/49 (Acquired 11/30/95 -
9/24/96; Cost $34,344,556) (b) 34,500,000 33,723,750
Niagara Mohawk Power Corporation Senior Notes:
Series B, 7.00%, Due 10/01/00 6,000,000 6,007,500
Series C, 7.125%, Due 7/01/01 20,000,000 20,025,000
Nordbanken AB Subordinated Floating Rate
Medium Term Yankee Bonds, 6.1875%,
Due 3/29/49 18,000,000 17,769,420
North Fork Bancorp Capital Trust Pass-Thru
Securities, 8.70%, Due 12/15/26 6,500,000 7,267,715
Okobank Subordinated Step-Up Perpetual Floating
Rate Notes, 7.1375%, Due 10/29/49 550,000 552,750
Old Kent Capital Trust I Subordinated Floating
Rate Capital Income Securities, 6.4875%,
Due 2/01/27 16,000,000 15,564,560
Salomon Brothers, Inc. Medium Term Floating
Rate Notes/ Interest Rate Swap, 5.9875%,
Due 9/30/03 4,400,000 4,359,608
Santa Fe Energy Resources, Inc. Senior
Subordinated Debentures, 11.00%, Due 5/15/04 15,920,000 17,034,400
Skandinaviska Enskilda Bank Subordinated
Floating Rate Medium Term Yankee Bonds,
6.6875%, Due 3/29/49 4,000,000 3,996,000
12
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
STRONG ADVANTAGE FUND (CONTINUED)
===============================================================================
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Skandinaviska Enskilda Banken Variable Rate
Subordinated Yankee Notes, 6.50%, Due 12/29/49
(Acquired 5/28/98 - 8/19/98;
Cost $19,900,825) (b) $20,000,000 $ 20,249,460
Spintab AB Floating Rate Subordinated Notes,
5.7475%, Due 12/29/49 (Acquired 11/21/97;
Cost $50,000,000) (b) 50,000,000 50,304,900
Star Capital Trust I Floating Rate Securities,
6.4525%, Due 6/15/27 15,000,000 14,627,580
Stop & Shop Companies, Inc. Senior Subordinated
Notes, 9.75%, Due 2/01/02 5,000,000 5,605,400
Suntrust Capital III Floating Rate Notes, 6.3375%,
Due 3/15/28 33,000,000 31,762,500
Swedbank Floating Rate Debt Unit (Medium Term
Structured Enhanced Return Trusts 1996):
Series R-34, 6.5875%, Due 11/10/02 (Acquired
5/23/96; Cost $25,000,000) (b) 25,000,000 24,625,000
Series R-35, 6.5375%, Due 11/10/02 (Acquired
10/16/96; Cost $20,000,000) (b) 20,000,000 19,700,000
System Energy Resources, Inc. First Mortgage
Bonds, 11.375%, Due 9/01/16 395,000 395,000
TKR Cable I, Inc. Senior Debentures, 10.50%,
Due 10/30/07 10,000,000 10,986,300
Time Warner, Inc. Pass-Thru Asset Trust
Securities, Series 1997-1, 6.10%, Due 12/30/01
(Acquired 1/08/97; Cost $22,896,000) (b) 24,000,000 23,926,320
Triangle Pacific Corporation Senior Notes,
10.50%, Due 8/01/03 10,080,000 10,527,350
Union Bank of Norway Subordinated Floating
Rate Medium Term Yankee Notes, 6.0375%,
Due 4/24/08 20,000,000 19,800,000
Union Bank of Norway Variable Rate Bonds,
7.35%, Due 12/31/49 (Acquired 7/06/98;
Cost $29,715,720) (b) 29,000,000 29,941,050
Union Planters Capital Trust Securities, 8.20%,
Due 12/15/26 7,000,000 7,623,182
WorldCom, Inc. Senior Notes, 6.125%, Due 8/15/01 25,440,000 25,699,386
- ------------------------------------------------------------------------------
TOTAL CORPORATE BONDS (COST $1,289,516,959) 1,289,634,362
- ------------------------------------------------------------------------------
NON-AGENCY MORTGAGE & ASSET-BACKED SECURITIES 28.9%
AFC Mortgage Loan Trust Variable Rate
Asset-Backed Certificates, Series 1994-1,
Class 2A-1, 7.6635%, Due 5/25/25 1,605,924 1,661,351
Airplanes Trust 1998 Floating Rate Refinancing
Pass-Thru Certificates, Series 1R, Class B,
6.3906%, Due 3/15/19 38,107,290 38,107,290
BCF LLC Mortgage Pass-Thru Certificates,
Series 1997-R2, Class 3-A1, 7.00%, Due
12/25/35 (Acquired 6/16/98; Cost $6,767,661) (b) 6,721,451 6,780,263
BTC Mortgage Investors Trust Secured Notes,
Series 1997-S1, Class A, 6.255%, Due 12/31/09
(Acquired 1/13/98; Cost $3,231,548) (b) 3,229,530 3,236,085
C-BASS ABS LLC Variable Rate Asset-Backed
Securities:
Series 1998-2, Class A1, 6.47%, Due 6/28/34
(Acquired 6/22/98; Cost $12,384,322) (b) 12,444,601 12,384,369
Series 1998-2, Class A2, 6.57%, Due 6/28/34
(Acquired 6/22/98; Cost $5,486,093) (b) 5,531,904 5,486,099
CORE Limited/ Interest Rate Swap, Series 1998-1X,
Class B2, 4.2313%, Due 1/16/06 (Acquired
7/27/98; Cost $14,044,000) (b) 14,044,000 14,356,971
Cargill Lease Receivables Trust Senior Lease
Backed Certificates, Series 1996-A, Class A-2,
6.43%, Due 12/20/05 6,570,838 6,605,730
Chase Mortgage Finance Corporation Mortgage
Pass-Thru Certificates, Series 1990-G, Class
A-Z1, 9.50%, Due 12/25/21 1,234,708 1,276,380
Chase Mortgage Finance Corporation Variable Rate
Mortgage Pass-Thru Certificates, Series 1992-3:
Class B7, 7.7847%, Due 10/28/23 1,166,102 1,166,102
Class B8, 7.7847%, Due 10/28/23 2,335,288 2,335,288
Citicorp Mortgage Securities, Inc. Adjustable Rate
Real Estate Mortgage Investment Conduit
Pass-Thru Certificates, Series 1992-7, Class 10,
7.183%, Due 3/25/22 4,441,106 4,526,464
Collateralized Mortgage Obligation Trust, Series 14,
Class Z, 8.00%, Due 1/01/17 2,996,816 3,017,875
ContiSecurities Residual Corporation
ContiMortgage Net Interest Margin Notes, Series
1997-A, 7.23%, Due 7/16/28 (Acquired 9/18/97;
Cost $5,043,492) (b) 5,043,492 5,037,188
DLJ Mortgage Acceptance Corporation Variable
Rate Mortgage Pass-Thru Certificates:
Series 1990-2, Class A, 7.3657%, Due 1/25/22 6,485,671 6,607,576
Series 1991-3, Class A1, 7.2538%, Due 2/20/21 845,998 858,027
Equipment Pass-Thru Investment Certificates Trust
Floating Rate Senior Certificates, Series 1996-1:
Class A, 6.707%, Due 9/25/09 (Acquired 6/14/96;
Cost $4,800,000) (b) 4,800,000 4,824,000
Class B, 7.457%, Due 9/25/09 (Acquired 7/01/96;
Cost $5,280,000) (b) 5,280,000 5,319,600
Class C, 10.707%, Due 9/25/03 (Acquired 6/28/96;
Cost $4,409,608) (b) 4,344,441 4,214,108
The Equitable Life Assurance Society of the United
States Collateralized Floating Rate Notes, Series
D-2, 6.7063%, Due 5/15/03 (Acquired 5/23/96 -
10/30/97; Cost $12,021,016) (b) 12,000,000 12,000,000
Franchise Finance Corporation of America Floating
Rate Notes, Series 1997-1:
Class D2, 6.75%, Due 6/18/13 (Acquired 6/04/97;
Cost $5,726,000) (b) 5,726,000 5,726,000
Class E2, 7.00%, Due 1/18/14 (Acquired 6/04/97;
Cost $2,290,000) (b) 2,290,000 2,290,000
Fund America Investors Corporation Variable Rate
Senior Pass-Thru Certificates, Series 1993-A,
Class A-1, 7.4534%, Due 6/25/23 14,087,676 14,549,301
G3 Mortgage Reinsurance, Ltd. Floating Rate
Mortgage Default Recourse Notes, Series 1,
Class A, 6.6484%, Due 5/25/08 (Acquired
5/08/98 - 5/19/98; Cost $5,513,750) (b) 5,500,000 5,484,545
GS Mortgage Securities Corporation II Commercial
Mortgage Floating Rate Pass-Thru Certificates,
Series 1998-GS1, Class D, 6.4563%, Due 12/13/12 24,000,000 23,992,560
Glendale Federal Bank Variable Rate Mortgage
Pass-Thru Certificates, Series 1990-3, Class A-1,
7.2114%, Due 3/25/30 2,405,207 2,432,266
Glendale Federal Bank Variable Rate Senior
Pass-Thru Mortgage Securities, Series 1990-1,
Class A, 7.0795%, Due 10/25/29 2,711,369 2,735,094
Great Western Bank, A Federal Savings Bank of
Beverly Hills, Adjustable Rate Mortgage
Pass-Thru Certificates, Series 1988-3, Class A,
6.29%, Due 12/25/17 3,979,860 3,961,195
Green Tree Financial Corporation Manufactured
Senior Subordinated Pass-Thru Certificates,
Series 1995-1, Class A5, 8.40%, Due 6/15/25 15,000,000 15,802,245
Greenwich Capital Acceptance, Inc. Variable Rate
Mortgage Pass-Thru Certificates, Series 1991-1,
Class A, 7.1542%, Due 2/25/21 (Acquired
4/18/96 - 6/23/97; Cost $19,478,273) (b) 19,057,678 19,510,298
Greenwich Capital Trust I, Class A, 7.145%, Due
2/15/21 (Acquired 3/04/97; Cost $9,093,271) (b) 8,738,717 8,989,955
13
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------
===============================================================================
STRONG ADVANTAGE FUND (CONTINUED)
===============================================================================
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Homart Pooled Asset Financial Trust Floating Rate
Collateral Trust Certificates:
Class A-3, 7.4063%, Due 12/29/01 (Acquired
12/21/93; Cost $8,638,282) (b) $ 8,638,282 $ 8,638,282
Class A-4, 8.1563%, Due 12/29/01 (Acquired
2/09/95; Cost $8,627,484) (b) 8,638,282 8,638,282
Home Savings of America Adjustable Rate
Mortgage Pass-Thru Certificates, Series
14, Class A, 5.8379%, Due 5/25/27 2,292,915 2,238,459
Kmart CMBS Financing, Inc. Floating Rate
Commercial Mortgage Pass-Thru Certificates,
Series 1997-1, Class D, 6.7563%, Due 3/01/07
(Acquired 2/21/97 - 3/10/97; Cost $15,020,625)(b) 15,000,000 15,000,000
Malan Mortgage Securities Trust Floating Rate
Commercial Mortgage Pass-Thru Certificates,
Series 1995-1, Class A2A, 6.4523%, Due 8/15/05
(Acquired 2/21/97; Cost $4,010,000) (b) 4,000,000 4,005,000
Merchandise Mart LLC Commercial Mortgage-Backed
Securities, 6.8563%, Due 9/30/99
(Acquired 5/26/98; Cost $24,950,000) (b) 25,000,000 24,950,000
Merrill Lynch Credit Corporation Floating Rate
Pass-Thru Asset-Backed Mortgage Loans:
Series 1996-C, Class B, 6.9375%, Due 9/15/21
(Acquired 5/09/97 - 8/14/98; Cost $4,224,814) (b) 4,850,165 4,249,957
Series 1996-D, Class B, 6.9375%, Due 5/15/25 7,938,000 6,795,642
Merrill Lynch Credit Corporation Senior
Subordinated Variable Rate Mortgage Pass-Thru
Certificates, Series 1995-A, Class A-5, 7.3744%,
Due 6/15/20 9,266,902 9,402,162
Merrill Lynch Credit Corporation Subordinated
Mortgage-Backed Certificates, Series 95-S1, Class
A-1, 6.6875%, Due 2/17/24 (Acquired 12/22/97;
Cost $4,770,312) (b) 5,000,000 4,733,600
Merrill Lynch Home Equity Acceptance, Inc.
Subordinated Variable Rate Mortgage-Backed
Certificates, Series 1994-A, Class A-1, 6.6875%,
Due 8/17/23 9,034,796 8,957,187
Merrill Lynch Mortgage Investors, Inc. Senior
Subordinated Variable Rate Pass-Thru
Certificates, Series 1994-A, Class M, 6.6875%,
Due 2/15/19 11,000,000 11,209,660
Merrill Lynch Mortgage Investors, Inc. Variable
Rate Commercial Mortgage Pass-Thru Certificates,
Series 1998-H1:
Class C, 6.168%, Due 4/01/11 (Acquired 7/23/98;
Cost $2,000,000) (b) 2,000,000 2,000,000
Class D, 6.368%, Due 4/01/11 (Acquired 7/23/98;
Cost $5,813,000) (b) 5,813,000 5,813,000
Class E, 6.668%, Due 4/01/11 (Acquired 7/23/98;
Cost $3,437,685) (b) 3,437,686 3,437,686
Merrill Lynch Mortgage Investors, Inc. Variable
Rate Commercial Mortgage Pass-Thru Certificates,
Series 97-SD1:
Class D, 6.3875%, Due 4/01/10 3,500,000 3,500,000
Class E, 6.6875%, Due 4/01/10 2,500,000 2,500,000
Merrill Lynch Mortgage Investors, Inc. Variable
Rate Mortgage Pass-Thru Certificates, Series
1994-M1, Class A, 8.1402%, Due 6/25/22 5,693,956 5,711,522
The Money Store, Inc. Securitized Net Interest
Margin Trust 1997-1 Notes, 7.36%, Due 6/20/25
(Acquired 12/23/97; Cost $4,464,647) (b) 4,464,647 4,495,364
Morgan Stanley Capital 1, Inc. Variable Rate
Commercial Mortgage Pass-Thru Certificates,
Series 1995-HF1, Class D, 7.2406%, Due 2/15/05 3,500,000 3,517,500
Morgan Stanley Mortgage Trust Variable Rate
Collateralized Mortgage Obligation, Series 35,
Class 35-2, Interest Only, 7,042.25%, Due 4/20/21 2,400 288,040
Nomura Depositor Trust Floating Rate Commercial
Mortgage Pass-Thru Certificates, Series 1998-ST1:
Class A3, 6.2363%, Due 1/15/03 (Acquired
1/30/98; Cost $4,500,000) (b) 4,500,000 4,478,895
Class A4, 6.5406%, Due 1/15/03 (Acquired
1/30/98 - 2/10/98; Cost $32,021,875) (b) 32,000,000 31,689,920
Class A5, 6.9063%, Due 1/15/03 (Acquired
1/30/98; Cost $6,300,000) (b) 6,300,000 6,227,172
OUC Commercial Mortgage Securities, Inc.
Adjustable Rate Subordinated Mortgage
Securities, Series 1998-1, Class C, 7.4877%, Due
1/25/28 (Acquired 2/12/98; Cost $8,413,224) (b) 8,387,015 8,407,982
Perpetual Savings Bank Variable Rate Mortgage
Pass-Thru Certificates, Series 1991-1, Class B1,
7.4673%, Due 6/25/19 (Acquired 9/17/96;
Cost $828,595) (b) 820,011 825,136
Prudential Home Mortgage Securities Company
Mortgage Pass-Thru Certificates, Series 1992-18,
Class M, 8.50%, Due 7/25/22 14,174,413 14,697,576
Prudential Home Mortgage Securities Company
Variable Rate Mortgage Pass-Thru Certificates,
Series 1988-1, Class A, 7.7293%, Due 4/25/18 1,156,565 1,173,443
RTC Adjustable Rate Mortgage Loan Pass-Thru
Certificates, Series 1991-1, Class A-1, 7.2425%,
Due 4/26/21 11,706,287 11,848,987
RTC Mortgage Pass-Thru Securities, Inc.
Commercial Certificates:
Series 1992-C7, Class C, 9.25%, Due 6/25/23 1,162,182 1,155,650
Series 1994-C2, Class E, 8.00%, Due 4/25/25 12,065,025 12,438,739
Series 1995-C2, Class B, 6.80%, Due 5/25/27 22,636,581 22,664,877
RTC Mortgage Pass-Thru Securities, Inc. Mortgage
Pass-Thru Certificates, Series 92-18P, Class B-5,
7.50%, Due 1/25/21 (Acquired 9/10/97;
Cost $929,560) (b) 926,088 928,403
RTC Variable Rate Mortgage Pass-Thru
Securities, Inc.:
Series 1992-4, Class B-2, 7.3289%, Due 7/25/28 14,376,654 14,448,537
Series 1992-6, Class B-9, 6.5475%, Due 11/25/26 3,034,334 3,036,868
Series 1992-15, Class B-7, 7.0175%, Due 7/25/27 1,000,000 1,001,275
Series 1992-17, Class A2, 7.4164%, Due 4/25/20 4,010,392 4,010,392
Series 1992-C1, Class B, 7.6875%, Due 8/25/23 1,000,393 1,004,144
Series 1993-1P, Class A-2, 7.30%, Due 8/25/19
(Acquired 2/05/98; Cost $5,068,706) (b) 5,062,379 5,097,967
Series 1993-3, Class A6, 8.0543%, Due 7/25/22 2,290,604 2,333,187
Series 1995-1, Class B-11, 7.2875%, Due 10/25/28 2,242,010 2,264,430
Series 1995-1, Class B-5, 6.9416%, Due 10/25/28 15,213,483 15,543,692
RTC Variable Rate Mortgage Pass-Thru
Securities, Inc. Multi-Family Certificates,
Series 1992-M1, Class B-1, 7.5875%, Due 1/25/20 9,036,357 9,115,470
Repeat Offering Securitisation Entity Funding
Number 1, Ltd. Floating Rate Asset-Backed
Notes, Class A5A, 6.3375%, Due 11/29/01
(Acquired 6/01/98; Cost $27,000,000) (b) 27,000,000 27,000,000
Repeat Offering Securitisation Entity Funding
Number 2, Ltd. Floating Rate Asset-Backed
Certificates:
Class A5A, 6.2875%, Due 10/28/04
(Acquired 7/14/98; Cost $9,972,266) (b) 10,000,000 9,972,300
Class A6, 7.6375%, Due 10/28/04 (Acquired
5/01/98; Cost $14,821,289) (b) 15,000,000 14,820,000
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 31,224,143 614,803
Ryland Mortgage Securities Corporation III
Collateralized Mortgage Bonds, Series 1992-C,
Class 3-A, 7.65%, Due 11/25/30 2,220,955 2,219,756
14
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
STRONG ADVANTAGE FUND (CONTINUED)
===============================================================================
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Ryland Mortgage Securities Corporation IV
Variable Rate Collateralized Mortgage Bonds,
Series 2, Class 3-A, 12.0055%, Due 6/25/23 $ 662,155 $ 698,990
Ryland Mortgage Securities Corporation Senior
Mortgage Partnership Variable Rate Securities,
Series 1989-1, Class 1A, Perpetual Savings Bank,
7.5793%, Due 2/25/19 288,025 288,071
Ryland Mortgage Securities Corporation Variable
Rate Mortgage Participation Securities:
Series 1990-C1, Class A, 6.2826%, Due 10/25/20 41,247,229 41,357,359
Series 1992-3, Class A-2, 7.3184%, Due 6/25/20 10,977,696 10,963,974
Salomon Brothers Mortgage Securities VII, Inc.
Variable Rate Mortgage Pass-Thru Certificates,
Series 1992-4, Class A2, 7.7436%, Due 9/25/22 2,468,604 2,484,428
Saxon Mortgage Securities Corporation Mortgage
Partnership Securities, Series 1993-8, Class
1A-1, 7.375%, Due 9/25/23 5,932,690 5,989,217
Sears Mortgage Securities Corporation Variable
Rate Mortgage Pass-Thru Certificates:
Series 1991-1, Class A-1, 6.017%, Due 7/25/21 28,250,655 28,241,474
Series 1992-21, Class A-2, 7.4902%, Due 12/26/22 1,149,052 1,181,508
Series 1992-23, Class A-4, 7.269%, Due 10/25/22 1,281,876 1,285,889
Structured Asset Securities Corporation Mortgage
Pass-Thru Certificates, Series 1996-CFL, Class
A-2A, 7.75%, Due 2/25/28 14,052,186 14,175,143
Structured Asset Securities Corporation Variable
Rate Multiclass Pass-Thru Certificates:
Series 1994-C1, Class A-3, 6.3284%, Due 8/25/26 1,323,103 1,329,751
Series 1995-C4, Class A-2, 6.1984%, Due 6/25/26 2,529,486 2,543,866
Series 1998-C2A, Class D, 6.2484%, Due 1/25/01
(Acquired 5/15/98; Cost $19,464,259) (b) 19,464,259 19,464,259
Structured Mortgage Trust Commercial Mortgage-
Backed Securities, 7.63%, Due 1/30/06 (Acquired
5/12/98; Cost $14,832,592) (b) 15,000,000 14,901,600
Trust Investment Enhanced Return Securities -
Chase Credit Card Master Trust, Series 1997-7,
Class A, 6.688%, Due 11/15/03 12,678,000 12,717,682
U-Haul Self-Storage Corporation Commercial
Mortgage Asset Trust Variable Rate Pass-Thru
Certificates, Series 1993-1, Class A1, 7.15%, Due
12/01/20 (Acquired 12/02/93; Cost $269,050) (b) 269,050 269,050
Western Federal Savings & Loan Association
Marina Del Rey California Variable Rate
Mortgage Pass-Thru Certificates, Series 1991-4,
Class A, 7.031%, Due 7/01/21 5,175,567 5,185,298
- ------------------------------------------------------------------------------
TOTAL NON-AGENCY MORTGAGE & ASSET-BACKED SECURITIES
(COST $774,641,431) 777,452,728
- ------------------------------------------------------------------------------
UNITED STATES GOVERNMENT & AGENCY ISSUES 9.5%
FHLMC Participation Certificates:
7.50%, Due 8/01/04 31,599,959 32,270,510
8.50%, Due 7/01/21 19,095,807 19,967,912
9.00%, Due 1/01/05 thru 9/15/20 25,765,545 27,400,593
10.50%, Due 11/01/20 1,139,598 1,290,218
10.75%, Due 10/01/00 16,424 17,147
11.00%, Due 10/01/00 thru 9/01/20 1,344,577 1,526,076
11.75%, Due 5/01/11 thru 6/01/11 1,140,093 1,304,362
12.00%, Due 9/01/11 thru 2/01/15 459,442 534,520
12.25%, Due 7/01/15 758,505 877,826
12.50%, Due 2/01/15 128,873 151,388
FNMA Guaranteed Real Estate Mortgage
Investment Conduit Pass-Thru Certificates:
8.00%, Due 7/25/19 thru 3/25/21 18,224,107 18,970,291
8.75%, Due 9/25/20 thru 12/25/20 27,271,819 28,772,716
9.00%, Due 1/01/13 thru 6/01/24 75,053,755 80,362,678
9.50%, Due 3/01/10 thru 3/01/21 10,502,103 11,319,985
9.75%, Due 3/25/20 8,519,313 9,143,037
10.00%, Due 12/01/09 4,678,186 5,023,202
13.50%, Due 9/01/14 17,046 20,750
FNMA Guaranteed Real Estate Mortgage
Investment Conduit Variable Rate Pass-Thru
Certificates, 7.548%, Due 12/01/17 3,754,195 3,896,141
GNMA Guaranteed Pass-Thru Certificates:
9.50%, Due 12/15/17 4,406,510 4,790,581
10.00%, Due 10/20/17 7,927,440 8,829,186
13.50%, Due 8/15/14 thru 11/15/14 112,052 135,954
15.00%, Due 5/15/12 thru 9/15/12 30,438 37,679
- ------------------------------------------------------------------------------
TOTAL UNITED STATES GOVERNMENT & AGENCY ISSUES (COST $254,334,882) 256,642,752
- ------------------------------------------------------------------------------
OPTIONS 0.2%
Merrill Lynch Swaption (The option to receive a
fixed interest rate of 7.75%; exercisable at a
strike price of $100 beginning 4/09/04 and
expiring 4/09/25.) 32,666,667 4,037,600
- ------------------------------------------------------------------------------
TOTAL OPTIONS (COST $1,512,573) 4,037,600
- ------------------------------------------------------------------------------
PREFERRED STOCKS 1.4%
California Federal Bank, A Federal Savings Bank,
Los Angeles, Series B 10.625% 10,000 1,090,000
El Paso Electric Company, Series A 11.40% 205,700 21,958,475
Parmalat Capital Finance, Series B 8.1523% 400,000 9,900,000
Pinto Totta International Finance, Ltd. 7.77%
(Acquired 7/24/97; Cost $5,000,000) (b) 5,000 5,378,125
- ------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS (COST $38,643,269) 38,326,600
- ------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 11.4%
COMMERCIAL PAPER 1.1%
DISCOUNTED 1.1%
Windmill Funding Corporation, Due 9/01/98
(Acquired 8/28/98; Cost $28,182,297) (b) $ 28,200,000 28,200,000
INTEREST BEARING, DUE UPON DEMAND 0.0%
Johnson Controls, Inc., 5.25% 767,800 767,800
------------
28,967,800
CORPORATE BONDS 8.4%
Bay View Capital Corporation Senior Debentures,
8.42%, Due 6/01/99 (Acquired 10/15/97 - 6/24/98;
Cost $17,212,500) (b) 17,000,000 17,215,849
Newscorp Overseas Limited Floating Rate Debt
Unit with Swap Agreement (Structured
Enhanced Return Trusts 1995), Series R-27,
6.5875%, Due 6/30/99 (Acquired 6/12/95;
Cost $27,120,000) (b) 28,250,000 25,425,000
Niagara Mohawk Power Corporation Senior
Notes, Series A, 6.50%, Due 7/01/99 100,000,000 100,000,000
Time Warner, Inc. Pass-Thru Asset Trust
Securities, 4.90%, Due 7/29/99 (Acquired
11/21/97; Cost $73,062,750) (b) 75,000,000 74,337,375
US Air 1993-A Pass-Thru Trust Certificates,
Series 1993-A1, 8.625%, Due 9/01/98 7,835,000 7,874,175
------------
224,852,399
NON-AGENCY MORTGAGE & ASSET-BACKED SECURITIES 0.2%
Advanta Mortgage Loan Trust Interest Only
Asset-Backed Certificates, Series 1998-2,
Class A-IO, 5.00%, Due 8/25/99 93,750,000 4,130,625
ContiMortgage Home Equity Loan Trust Interest
Only Pass-Thru Certificates, Series 1997-5,
Class A11, 6.50%, Due 6/15/99 44,547,564 2,304,000
------------
6,434,625
15
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------
===============================================================================
STRONG ADVANTAGE FUND (CONTINUED)
===============================================================================
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 1.6%
ABN-AMRO Chicago Corporation (Dated 8/31/98),
5.75%, Due 9/01/98 (Proceeds $42,006,708);
Collateralized by: $44,756,000 United States
Treasury Bills, Due 7/22/99 (Market Value
$42,840,816) (d) $42,000,000 $ 42,000,000
UNITED STATES GOVERNMENT ISSUES 0.1%
United States Treasury Bills, Due 9/03/98 thru
10/15/98 (c) 3,245,000 3,239,305
- ------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $307,577,714) 305,494,129
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES (COST $2,666,226,828) 99.4% 2,671,588,171
Other Assets and Liabilities, Net 0.6% 16,577,122
- ------------------------------------------------------------------------------
NET ASSETS 100.0% $2,688,165,293
==============================================================================
FUTURES
- --------------------------------------------------------------------------------
Underlying Unrealized
Expiration Face Amount Appreciation
Date at Value (Depreciation)
- --------------------------------------------------------------------------------
Purchased:
2,450 90-Day Eurodollars 12/99 $579,425,000 $912,250
181 Ten-Year U.S. Treasury Notes 12/98 21,199,625 53,791
216 U.S. Treasury Bonds 12/98 27,432,000 124,943
Sold:
291 Ten-Year U.S. Treasury Notes 12/98 34,083,375 (165,961)
289 U.S. Treasury Bonds 12/98 36,703,000 (472,313)
SWAPS
- --------------------------------------------------------------------------------
Open interest rate swap contracts at August 31, 1998 consisted of the following:
- --------------------------------------------------------------------------------
Notional Interest Interest
Issuer Amount Sold Bought
- --------------------------------------------------------------------------------
CORE Limited 14,044,000 3 Month German 3 Month USD
Mark LIBOR + 80bp LIBOR + 78bp
Mashantucket Western 30,000,000 6.91% 3 Month USD
Pequot Tribe LIBOR + 28bp
Salomon Brothers, Inc. 4,400,000 10 Year Constant 3 Month USD
Maturity Treasury LIBOR + 30bp
+ 140bp
- --------------------------------------------------------------------------------
===============================================================================
STRONG MUNICIPAL ADVANTAGE FUND
===============================================================================
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
MUNICIPAL BONDS 32.0%
ALABAMA 0.1%
Washington County, Alabama Board of Education
Municipal Project Lease and Option Agreement
COP, 5.10%, Due 1/31/03 $ 1,491,877 $ 1,495,607
ARKANSAS 0.5%
Fayetteville, Arkansas Public Facilities Board
Refunding and Improvement Revenue - Butterfield
Trail Village Project, 9.50%, Due 9/01/14
(Pre-Refunding at $102 on 9/01/99) 3,385,000 3,646,491
Little Rock, Arkansas Collateralized IDR -
Lexicon, Inc. Project, 6.48%, Due 7/01/06 4,385,000 4,418,194
-----------
8,064,685
CALIFORNIA 0.9%
California Hospital Revenue - Valley Health System
Refunding and Improvement Project, 5.50%,
Due 5/15/00 740,000 749,250
California PCFA Solid Waste Revenue - Keller
Canyon Landfill Company Project, 6.875%,
Due 11/01/27 4,100,000 4,484,375
Santa Ana, California Community Redevelopment
Refunding, 7.50%, Due 9/01/16 2,000,000 2,116,760
Southern California Public Power Authority Power
Project Revenue 1999 Subordinate Refunding -
Palo Verde Project, 5.00%, Due 7/01/00 (f) 3,300,000 3,361,875
Stanislaus, California Waste-To-Energy Financing
Agency Solid Waste Facility Revenue Refunding -
Ogden Martin System, Inc. Project, 7.625%,
Due 1/01/10 3,000,000 3,172,500
-----------
13,884,760
COLORADO 0.4%
Arapahoe County, Colorado SFMR - IDK Partners
I Trust Pass-Thru Certificates, 5.25%,
Due 11/01/19 3,119,076 3,181,457
Central City, Gilpin County, Colorado Excise Tax
Refunding, 5.40%, Due 12/01/00 3,300,000 3,374,250
-----------
6,555,707
CONNECTICUT 1.9%
Connecticut Development Authority Airport
Facilities Revenue - Roncari Associates, Inc.
Project, 7.25%, Due 12/01/99 1,965,489 1,980,230
Connecticut HFA Housing Mortgage Finance
Program, 7.30%, Due 11/15/03 2,265,000 2,369,756
Connecticut Resources Recovery Authority
Revenue - American REF-FUEL Company of
Southeastern Connecticut Project:
5.00%, Due 11/15/99 3,340,000 3,394,275
8.00%, Due 11/15/15 18,285,000 18,987,327
Norwich, Connecticut Tax-Exempt Equipment
Lease, 6.35%, Due 8/01/01 1,401,308 1,452,105
-----------
28,183,693
DISTRICT OF COLUMBIA 0.7%
District of Columbia Revenue - Georgetown
University Project, 7.25%, Due 4/01/20 10,000,000 10,224,800
GEORGIA 0.4%
George L. Smith II Georgia World Congress Center
Authority Revenue Refunding - Domed Stadium
Project, 5.75%, Due 7/01/01 (f) 5,005,000 5,161,406
IDAHO 0.3%
Boise, Idaho Housing Authority Revenue - Hobbler
Place Project, 5.25%, Due 2/01/02 4,680,000 4,744,350
16
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
STRONG MUNICIPAL ADVANTAGE FUND (CONTINUED)
===============================================================================
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
ILLINOIS 1.4%
Alton, Illinois Hospital Facilities Revenue and
Refunding - St. Anthony's Health Center Project:
4.95%, Due 9/01/99 $ 1,400,000 $ 1,408,217
5.00%, Due 9/01/01 850,000 859,562
5.15%, Due 9/01/00 1,355,000 1,371,937
Eureka, Illinois Educational Facilities Revenue -
Eureka College Project, 5.25%, Due 1/01/01 660,000 660,825
Hodgkins, Illinois GO Tax Allocation, 9.50%, Due
12/01/09 (Pre-Refunding at $104 on 12/01/01) 2,600,000 3,055,000
Illinois Health Facilities Authority Revenue
Refunding - Westlake Community Hospital
Project, 7.875%, Due 1/01/13 4,450,000 4,587,594
Kane, McHenry, Cook and DeKalb Counties, Illinois
Community Unit School District Number 300 GO
Lease Secured COP - School Building Project,
6.90%, Due 12/01/04 3,685,000 4,025,863
Romeoville, Will County, Illinois COP:
7.30%, Due 12/01/99 2,250,000 2,317,500
7.30%, Due 12/01/00 2,000,000 2,107,500
-----------
20,393,998
INDIANA 1.5%
East Chicago, Indiana School City COP:
5.10%, Due 7/15/03 3,685,000 3,712,637
5.50%, Due 7/15/02 2,680,000 2,777,150
Fishers, Indiana First Mortgage EDR - United
Student Aid Funds, Inc. Project:
8.25%, Due 9/01/09 10,000,000 10,200,000
8.375%, Due 9/01/14 3,250,000 3,347,500
Huntington, Indiana EDR Refunding - Quanex
Corporation Project, 6.50%, Due 8/01/10 1,665,000 1,720,012
-----------
21,757,299
IOWA 0.3%
Cedar Rapids, Iowa First Mortgage Revenue -
Cottage Grove Place Project:
5.30%, Due 7/01/05 1,910,000 1,917,163
7.25%, Due 7/01/02 2,535,000 2,588,818
-----------
4,505,981
KANSAS 0.6%
Kansas City, Kansas Board of Public Utilities
Master Municipal Lease and Option Agreement,
4.47%, Due 5/01/03 4,230,867 4,220,290
Kansas City, Kansas Residual Revenue Capital
Appreciation, Zero %, Due 5/01/12 1,805,000 638,519
Sedgwick and Shawnee Counties, Kansas SFMR
Mortgage-Backed Securities Program,
4.70%, Due 12/01/08 3,500,000 3,517,500
-----------
8,376,309
KENTUCKY 0.7%
Kentucky EDFA Hospital System Refunding and
Improvement Revenue - Appalachian Regional
Healthcare, Inc. Project:
4.50%, Due 10/01/99 2,005,000 2,013,321
4.70%, Due 10/01/00 2,085,000 2,103,244
4.85%, Due 10/01/01 2,195,000 2,225,181
5.00%, Due 10/01/02 2,300,000 2,346,000
5.10%, Due 10/01/03 2,165,000 2,219,125
-----------
10,906,871
LOUISIANA 4.4%
East Baton Rouge, Lousiana Mortgage Finance
Authority SFMR Refunding - GNMA and FNMA
Mortgage-Backed Securities Program, 4.60%,
Due 10/01/16 4,000,000 4,040,000
Louisiana Health Education Authority Revenue -
Lambeth House Project, 5.25%, Due 1/01/05 14,875,000 14,930,781
Louisiana Public Facilities Authority Hospital
Revenue and Refunding - Pendleton Memorial
Methodist Hospital Project, 6.75%, Due 6/01/10 3,060,000 3,331,575
New Orleans, Louisiana Regional Transit Authority
Lease-Purchase Agreements, 5.50%, Due 5/01/08:
Lease M98147 34,526,499 34,958,080
Lease M98159 3,247,696 3,288,292
Ouachita Parish, Louisiana IDB, Inc. Revenue
Refunding - Physicians and Surgeons Medical
Complex Project, 4.80%, Due 8/01/02 3,750,000 3,829,687
-----------
64,378,415
MAINE 0.2%
Maine Educational Loan Marketing Corporation
Student Loan Revenue Refunding, 6.65%,
Due 11/01/99 2,595,000 2,653,388
MASSACHUSETTS 0.7%
Commonwealth of Massachusetts Department of
Revenue Tax-Exempt Master Equipment Lease:
5.085%, Due 10/01/00 1,298,581 1,318,060
5.40%, Due 9/30/99 3,137,350 3,188,646
5.62%, Due 10/01/01 1,959,092 2,015,416
Massachusetts Health and Educational Facilities
Authority Competitive Lease Program -
Whitehead Institute for Biomedical Research
Project, 4.698%, Due 5/07/03 2,663,000 2,669,657
Massachusetts Industrial Finance Agency
Industrial Revenue - John T. Spinelli Project,
7.00%, Due 11/01/00 878,458 878,458
-----------
10,070,237
MICHIGAN 0.2%
Detroit, Michigan EDC Resource Recovery
Revenue, 7.00%, Due 5/01/01 3,420,000 3,599,550
MINNESOTA 0.9%
Minneapolis, Minnesota Temporary Parking Ramp
Revenue, 4.75%, Due 6/01/00 5,885,000 5,890,591
Minneapolis-St. Paul, Minnesota Metropolitan
Airports Commission GO Revenue, 7.80%,
Due 1/01/14 3,000,000 3,094,980
Plymouth, Minnesota Revenue Refunding - Carlson
Center Project, 7.00%, Due 4/01/12 3,665,000 3,775,390
-----------
12,760,961
MISSISSIPPI 1.5%
Claiborne County, Mississippi PCR - Middle South
Energy, Inc. Project, 9.875%, Due 12/01/14 16,510,000 17,220,590
Jones County, Mississippi Hospital Revenue
Refunding - South Central Regional Medical
Center Project, 5.00%, Due 12/01/03 4,130,000 4,222,925
-----------
21,443,515
MISSOURI 0.1%
Springfield, Missouri Land Clearance
Redevelopment Authority Industrial Revenue -
University Plaza Project, 5.90%, Due 10/01/01 1,125,000 1,150,312
NEBRASKA 2.1%
Energy America Gas Supply Revenue - Metropolitan
Utilities District Project, 5.30%, Due 4/01/05 18,502,659 18,988,354
Energy America Gas Supply Revenue - Nebraska
Public Gas Agency Project, 5.10%, Due 10/15/05 6,528,923 6,586,052
Omaha Tribe of Nebraska Public Improvements
Authority GO, 7.50%, Due 12/01/02 5,400,000 5,515,506
-----------
31,089,912
17
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------
===============================================================================
STRONG MUNICIPAL ADVANTAGE FUND (CONTINUED)
===============================================================================
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
NEVADA 0.1%
Henderson, Nevada Local Improvement Districts
Number T-4, 6.00%, Due 11/01/01 $ 465,000 $ 477,206
Reno-Sparks, Nevada Convention and Visitors
Authority Limited Obligation Refunding, 6.25%,
Due 11/01/01 1,540,000 1,597,750
2,074,956
NEW JERSEY 0.8%
New Jersey EDA Senior Mortgage Revenue - Arbor
Glen of Bridgewater Project, 7.00%, Due 5/15/06 11,525,000 11,568,680
NEW YORK 1.2%
Dutchess County, New York Resource Recovery
Agency Solid Waste System Revenue:
4.45%, Due 1/01/01 (f) 1,130,000 1,134,238
4.55%, Due 1/01/02 (f) 1,305,000 1,311,525
4.65%, Due 1/01/03 (f) 1,400,000 1,412,250
4.70%, Due 1/01/04 (f) 1,490,000 1,501,175
New York Medical Care Facilities Finance Agency
Revenue Hospital and Nursing Home Mortgage,
8.00%, Due 2/15/27 5,005,000 5,086,331
New York Mortgage Agency Homeowner Mortgage
Revenue, 4.75%, Due 10/01/21 7,245,000 7,308,394
-----------
17,753,913
OHIO 0.7%
Cleveland, Ohio City School District Energy
Conservation Improvement GO, 6.53%,
Due 9/15/99 630,000 645,901
Lucas County, Ohio Hospital Revenue Refunding -
Riverside Hospital Project, 7.625%, Due 6/01/15 2,400,000 2,433,240
Ohio Department of Transportation COP -
Rickenbacker Port Project, 6.125%, Due 4/15/15 415,000 432,193
Ohio Township, Allegheny County, Pennsylvania
GO, 5.15%, Due 11/15/00 1,785,000 1,836,319
Youngstown, Ohio City School District Energy
Conservation Measures, 6.80%, Due 3/15/05 4,280,000 4,606,350
-----------
9,954,003
OREGON 0.4%
Clackamas County, Oregon Hospital Facility
Authority Revenue and Refunding - Willamette
View, Inc. Project, 5.40%, Due 11/01/02 1,540,000 1,586,200
Medford, Oregon Municipal Lease-Purchase
Agreement, 5.00%, Due 5/01/03 1,899,171 1,903,919
Multnomah County, Oregon Educational Facilities
Refunding and Revenue - University of Portland
Project, 4.75%, Due 4/01/01 2,940,000 2,987,775
-----------
6,477,894
PENNSYLVANIA 3.0%
Lehigh County, Pennsylvania General Purpose
Authority Revenue - KidsPeace Obligated
Group Project:
5.50%, Due 11/01/01 2,125,000 2,143,594
5.50%, Due 11/01/02 2,240,000 2,265,200
5.50%, Due 11/01/03 2,360,000 2,386,550
5.50%, Due 11/01/04 2,500,000 2,531,250
Montgomery County, Pennsylvania IDA First
Mortgage Revenue Refunding - The Meadowood
Corporation Project, 5.15%, Due 12/01/03 1,500,000 1,503,750
Pennsylvania Housing Finance Agency SFMR,
7.75%, Due 10/01/09 4,000,000 4,153,160
Philadelphia, Pennsylvania Airport Revenue
Refunding - Philadelphia Airport System
Project, 5.50%, Due 6/15/01 2,000,000 2,080,000
Philadelphia, Pennsylvania Hospitals and Higher
Education Facilities Authority Revenue, 8.375%,
Due 6/01/04 1,480,000 1,622,450
Philadelphia, Pennsylvania IDA Health Care
Facilities Revenue - Pauls Run Project, 5.125%,
Due 5/15/03 1,950,000 1,959,750
Philadelphia, Pennsylvania Municipal Authority
Equipment Revenue, 5.297%, Due 10/01/04 17,015,763 18,121,788
Scranton, Lackawanna County, Pennsylvania
Health and Welfare Authority Hospital
Revenue - Moses Taylor Hospital Project, 5.25%,
Due 7/01/02 4,750,000 4,862,812
-----------
43,630,304
SOUTH CAROLINA 0.8%
Charleston County, South Carolina First Mortgage
Health Facilities Revenue - The Episcopal
Church Home Project, 5.40%, Due 4/01/04 8,100,000 8,181,000
Charleston County, South Carolina Industrial
Revenue Refunding - Coburg Dairy, Inc. Project,
6.875%, Due 10/01/06 1,400,000 1,416,828
Greystone, South Carolina Tax-Exempt Asset Trust
Pass-Thru Certificates, 4.30%, Due 6/20/00 2,393,525 2,393,525
-----------
11,991,353
TENNESSEE 1.5%
Tennessee Housing Development Agency -
Homeownership Program, Zero %, Due 7/01/12 41,955,000 21,921,488
TEXAS 2.1%
Brazos River Authority Collateralized PCR - Texas
Utilities Electric Company Project, 8.125%,
Due 2/01/20 2,000,000 2,135,000
Brazos River Authority Collateralized Revenue
Refunding - Houston Lighting & Power Company
Project, 7.75%, Due 10/01/15 5,000,000 5,114,650
Dallas-Fort Worth, Texas International Airport
Facilities Improvement Corporation Revenue -
American Airlines, Inc. Project, 7.50%,
Due 11/01/25 11,670,000 12,589,013
Falcons Lair, Texas Utility and Reclamation
District COP, 6.25%, Due 10/15/99 4,000,000 4,015,000
Houston, Texas Airport System Subordinate Lien
Revenue Refunding:
5.25%, Due 7/01/00 2,230,000 2,288,538
5.25%, Due 7/01/01 2,350,000 2,432,250
North Central Texas Health Facilities Development
Corporation Health Facility Development
Revenue EXTRAS - C.C. Young Memorial Home
Project, 5.00%, Due 2/15/28 1,575,000 1,580,906
-----------
30,155,357
UTAH 0.3%
Salt Lake City, Utah Redevelopment Agency
Central Business District Neighborhood
Redevelopment Tax Increment Revenue
Refunding, 4.75%, Due 10/01/02 4,200,000 4,289,250
VIRGINIA 0.3%
Arlington County, Virginia COP, 4.458%,
Due 6/01/01 3,729,731 3,753,042
WASHINGTON 0.7%
Lynnwood, Snohomish County, Washington Local
Improvement District Number 93-1 BAN, 4.60%,
Due 10/01/99 5,000,000 5,003,200
18
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
STRONG MUNICIPAL ADVANTAGE FUND (CONTINUED)
===============================================================================
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Skagit and Whatcom Counties, Washington Public
Hospital District Number 304 Revenue and
Refunding - Affiliated Health Services, 4.90%,
Due 12/01/02 $ 3,210,000 $ 3,270,188
Skagit County, Washington Public Hospital District
Number 1 Revenue and Refunding - Affiliated
Health Services Project, 4.90%, Due 12/01/02 2,415,000 2,460,281
------------
10,733,669
WEST VIRGINIA 0.1%
Kanawha County, West Virginia County Commission
IDR - Union Carbide Chemicals and Plastics
Company, Inc. Project, 8.00%, Due 8/01/20 1,930,000 2,081,988
WISCONSIN 0.2%
Lake Como Sanitary District Number 1 BAN,
4.50%, Due 6/01/00 2,350,000 2,364,077
- ------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS (COST $462,772,010) 470,151,730
- ------------------------------------------------------------------------------
VARIABLE RATE PUT BONDS 6.0%
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 3,007,980
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 3,112,500
FLORIDA 0.7%
Escambia County, Florida Housing Corporation
Housing Revenue - Wellington Arms Project,
7.375%, Due 9/01/16 (Mandatory Put at $100 on
9/01/99) 10,650,000 10,781,101
Florida Housing Finance Agency MFHR - Cypress
Lake Apartment Project, 5.75%, Due 12/01/07
(Mandatory Put at $100 on 12/01/02) 200,000 207,250
------------
10,988,351
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) 2,935,000 2,968,019
ILLINOIS 2.0%
Chicago, Illinois MFHR - Chicago Beach Apartments
Project, 5.50%, Due 2/01/17 (Mandatory Put at
$100 on 2/01/02) 2,985,000 2,992,224
Eureka, Illinois Educational Facilities Revenue -
Eureka College Project, 5.25%, Due 1/01/19
(Putable at $100 and Rate Reset Effective 1/01/01) 3,330,000 3,334,163
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 3,600,625
Robbins, Illinois Resource Recovery Revenue
Refunding - Robbins Resource Recovery Partners,
4.90%, Due 10/15/17 (Mandatory Put at $100 on
10/15/02) 19,350,000 19,833,750
------------
29,760,762
INDIANA 0.6%
Anderson, Indiana MFHR - Cross Lakes
Apartments Project, 5.625%, Due 7/01/33
(Mandatory Put at $100 on 7/01/00) 8,500,000 8,553,125
MAINE 0.4%
Maine Finance Authority MFHR - Back Bay Tower
Project, 5.25%, Due 9/01/18 (Mandatory Put at
$100 on 9/01/99) 5,935,000 5,995,062
PENNSYLVANIA 0.3%
Montgomery County, Pennsylvania IDA First
Mortgage Revenue Refunding EXTRAS - The
Meadowood Corporation Project, 5.50%, Due
12/01/19 (Putable at $100 and Rate Reset
Effective 12/01/02) 3,000,000 3,011,250
Philadelphia, Pennsylvania IDA Health Care
Facilities Revenue EXTRAS - Paul's Run Project,
5.125%, Due 5/15/28 (Putable at $100 and Rate
Reset Effective 5/15/03) 2,000,000 2,002,500
------------
5,013,750
SOUTH CAROLINA 0.2%
Charleston County, South Carolina First Mortgage
Health Facilities Revenue - The Episcopal Church
Home Project, 5.30%, Due 4/01/27 (Putable at
$100 and Rate Reset Effective 10/01/02) 3,000,000 3,052,500
TENNESSEE 0.2%
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 2,483,687
TEXAS 0.7%
Abilene, Texas Health Facilities Development
Corporation - Sears Methodist Retirement System
Obligated Group Project EXTRAS, 5.25%, Due
11/15/28 (Putable at $100 and Rate Reset
Effective 11/15/03) (f) 9,000,000 9,000,000
Trinity River Authority Refunding - Texas
Industries, Inc. Project, 6.375%, Due
9/01/07 (Putable at $100 and Rate Reset
Effective 11/01/01) 405,000 418,669
Trinity River Authority Refunding - Texas
Industries, Inc. Project, Series A,
6.375%, Due 9/01/07 (Putable at $100 and
Rate Reset Effective 11/01/01) 250,000 258,437
------------
9,677,106
VIRGINIA 0.3%
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 4,265,938
- ------------------------------------------------------------------------------
TOTAL VARIABLE RATE PUT BONDS (COST $87,740,482) 88,878,780
- ------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 64.8%
MUNICIPAL BONDS 9.4%
CALIFORNIA 0.5%
Vallejo, California BAN - Water Improvement
Project, 4.75%, Due 7/15/99 6,675,000 6,727,132
FLORIDA 1.6%
Dade County, Florida Solid Waste System Special
Obligation Revenue BAN, 4.75%, Due 9/01/98 24,000,000 24,000,000
19
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------
===============================================================================
STRONG MUNICIPAL ADVANTAGE FUND (CONTINUED)
===============================================================================
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
ILLINOIS 3.1%
Alton, Illinois Hospital Facilities Revenue and
Refunding - St. Anthony's Health Center Project,
4.65%, Due 9/01/98 $ 1,350,000 $ 1,350,000
Illinois Health Facilities Authority Revenue
Refunding - Westlake Community Hospital
Project, 7.625%, Due 1/01/99 790,000 798,579
Lake, Cook, Kane and McHenry Counties, Illinois
Community United School District Number 220
TAN, 4.35%, Due 12/15/98 8,175,000 8,192,331
Winnebago and Boone Counties, Illinois Rockford
School District Number 205 Educational Purpose
Tax Anticipation Warrants, 5.10%, Due 10/30/98 35,120,000 35,206,746
------------
45,547,656
KENTUCKY 0.1%
Kentucky EDFA Hospital System Refunding and
Improvement Revenue - Appalachian Regional
Healthcare, Inc. Project, 4.25%, Due 10/01/98 1,455,000 1,455,480
MICHIGAN 0.0%
Pontiac, Michigan Hospital Financing Authority
Hospital Revenue - NOMC Obligation Group
Project, 5.60%, Due 8/01/99 200,000 201,596
NEW JERSEY 1.9%
East Orange, New Jersey TAN, 4.95%,
Due 10/23/98 10,000,000 10,021,300
Irvington Township, New Jersey BAN:
5.00%, Due 10/23/98 7,500,000 7,515,975
5.00%, Due 6/09/99 2,900,000 2,932,393
South Amboy, New Jersey Housing Authority
Housing Revenue - Shore Gate Village Grand
Project, 6.00%, Due 8/15/99 6,850,000 6,862,741
------------
27,332,409
OHIO 0.1%
Cleveland, Ohio City School District Energy
Conservation Improvement GO:
6.53%, Due 9/15/98 590,000 590,561
6.53%, Due 3/15/99 610,000 618,796
------------
1,209,357
OKLAHOMA 0.2%
Oklahoma Industries Authority Hospital BAN -
Deaconess Healthcare Corporation Project,
4.35%, Due 8/01/99 3,500,000 3,522,960
OREGON 0.5%
Portland, Oregon Housing Authority Tax Credit
Notes - Yards at Union Station Project, 5.00%,
Due 7/15/99 2,265,000 2,274,400
Portland, Oregon MFHR - Civic Stadium Housing
Project, 4.60%, Due 8/01/99 2,000,000 2,008,820
Washington County, Oregon Housing Authority
Tax Credit - Bethany Meadows Project, 5.00%,
Due 9/30/98 2,260,000 2,261,469
------------
6,544,689
PENNSYLVANIA 0.2%
Titusville, Crawford County, Pennsylvania GO,
5.00%, Due 4/15/99 3,500,000 3,529,925
RHODE ISLAND 0.3%
Johnston, Rhode Island BAN, 5.20%, Due 11/12/98 4,066,000 4,076,938
WISCONSIN 0.9%
Lake Como Sanitary District Number 1 Water
Revenue BAN, 4.35%, Due 6/01/99 7,065,000 7,080,260
Manawa, Wisconsin School District TRAN, 4.33%,
Due 9/09/98 2,200,000 2,200,308
Merrill, Wisconsin Area Common Public School
District TRAN, 4.27%, Due 9/30/98 2,300,000 2,301,012
Pulaski, Wisconsin Community School District
TRAN, 4.28%, Due 10/01/98 2,000,000 2,001,000
------------
13,582,580
------------
Total Municipal Bonds 137,730,722
VARIABLE RATE PUT BONDS 3.1%
CALIFORNIA 0.3%
Vallejo, California Housing Authority MFMR -
Highlands Apartments Project, 5.00%, Due
6/01/07 (Mandatory Put at $100 on 6/01/99) 4,585,000 4,596,004
FLORIDA 0.6%
Escambia County, Florida Escambia Housing
Corporation Housing Revenue - Royal Arms
Project, 7.00%, Due 7/01/17 (Mandatory Put at
$100 on 7/01/99) 9,360,000 9,427,392
INDIANA 0.1%
Elkhart, Indiana EDR MFMR - FHA Insured
Mortgage Loan - Prairie Village Apartments
Project, 5.125%, Due 7/01/37 (Mandatory Put at
$100 on 7/01/99) 2,095,000 2,096,047
NEW MEXICO 0.5%
Bernalillo County, New Mexico MFHR - Desert
Willow Apartments Project, 4.25%, Due 8/01/39
(Mandatory Put at $100 on 8/01/99) 7,500,000 7,536,750
OHIO 0.3%
Franklin County, Ohio Mortgage Revenue - GNMA
Collateralized - Gateway Apartment Homes
Project, 5.375%, Due 10/20/27 (Mandatory Put at
$100 on 3/20/99) 2,695,000 2,701,630
Lorain County, Ohio IDR - Gilford Instrument
Laboratories, Inc. Project, 5.25%, Due 7/01/14
(Putable at $100 and Rate Reset Effective 7/01/99) 1,000,000 1,013,540
------------
3,715,170
PENNSYLVANIA 0.2%
Chester County, Pennsylvania Health and Education
Facilities Authority Revenue - Barclay Friends
Project, 4.90%, Due 8/01/25 (Mandatory Put at
$100 on 8/01/99) 2,500,000 2,528,575
PUERTO RICO 0.2%
Puerto Rico Highway and Transportation
Authority Highway Revenue, 4.125%, Due
7/01/10 (Putable at $100 and Rate Reset
Effective 9/28/98) 3,300,000 3,300,000
SOUTH DAKOTA 0.6%
Sioux Falls, South Dakota EDR Refunding - City
Centre Hotel Corporation Project, 7.00%, Due
11/01/16 (Putable at $100 and Rate Reset
Effective 1/01/99) 8,020,140 8,020,140
20
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
STRONG MUNICIPAL ADVANTAGE FUND (CONTINUED)
===============================================================================
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
WISCONSIN 0.3%
Germantown, Wisconsin IDR - Moldmakers Leasing
and Investments, LLP Project, 5.00%, Due
12/01/12 (Mandatory Put at $100 on 12/01/98) $ 4,000,000 $ 4,003,120
-----------
Total Variable Rate Put Bonds 45,223,198
MUNICIPAL COMMERCIAL PAPER 4.6%
ARIZONA 0.8%
Arizona Industrial Commission Special Fund
Tax-Exempt COP Refunding, 4.30%, Due 9/03/98 11,300,000 11,300,000
CALIFORNIA 1.0%
California Pollution Control Financing Authority
Environmental Improvement Revenue - Shell Oil
Company Project, 5.54%, Due 9/04/98 15,000,000 15,000,000
PENNSYLVANIA 2.6%
Philadelphia, Pennsylvania GO, 4.25%, Due 9/14/98 37,900,000 37,900,000
TEXAS 0.2%
Port Development Corporation Marine Terminal
Refunding Revenue - Mitsui and Company
(USA), Inc. Project, 4.40%, Due 9/03/98 3,000,000 3,000,000
-----------
Total Municipal Commercial Paper 67,200,000
ANNUAL PUT BONDS 3.6%
OHIO 0.1%
Sharonville, Ohio IDR - Ralston Purina Company
Project (e) 1,000,000 1,002,280
SOUTH CAROLINA 0.7%
Georgetown County, South Carolina PCR -
International Paper Company Project (e) 11,000,000 11,000,000
TENNESSEE 0.2%
Knox County, Tennessee 7.50% IDB IDR - Spartan
Food Systems, Inc. Project 1,500,000 1,505,625
Maryville, Tennessee 7.50% IDB IDR - Spartan
Food Systems, Inc. Project 1,500,000 1,504,740
-----------
3,010,365
TEXAS 2.6%
Brazos River Authority Texas Collateralized PCR
Refunding - Texas Utilities Electric Company
Project (e) 38,000,000 38,000,000
-----------
Total Annual Put Bonds 53,012,645
SEMI-ANNUAL VARIABLE RATE PUT BONDS 0.1%
CALIFORNIA 0.1%
Huntington Park, California Redevelopment Agency
IDR - Huntington Park Project 1,175,000 1,175,000
QUARTERLY VARIABLE RATE PUT BONDS 1.9%
OKLAHOMA 0.7%
Oklahoma Industries Authority Hospital Revenue -
Deaconess Health Care Corporation Project 10,000,000 10,000,000
WASHINGTON 1.2%
Washington Housing Finance Commission SFMR Refunding:
Series S-3A 4,020,000 4,020,000
Series S-4A 2,420,000 2,420,000
Series S-6A 7,060,000 7,060,000
Series S-6B 3,750,000 3,750,000
Series S-7A 435,000 435,000
-----------
17,685,000
-----------
Total Quarterly Variable Rate Put Bonds 27,685,000
MONTHLY VARIABLE RATE PUT BONDS 1.1%
LOUISIANA 0.8%
Calcasieu Parish, Louisiana Memorial Hospital
Service District Hospital Revenue - Lake Charles
Memorial Hospital Project 11,150,000 11,150,000
MISSOURI 0.3%
Desloge, Missouri IDA IDR Refunding - National
Healthcorp Project 2,000,000 2,000,000
Dunklin County, Missouri IDA IDR Refunding -
National Healthcorp Project 2,555,000 2,555,000
-----------
4,555,000
-----------
Total Monthly Variable Rate Put Bonds 15,705,000
WEEKLY VARIABLE RATE PUT BONDS 36.8%
ALABAMA 1.3%
Birmingham, Alabama IDB IDR - Home Baking
Company, Inc. Project:
Series A 3,230,000 3,230,000
Series B 1,265,000 1,265,000
Grove Hill, Alabama IDB IDR - Hamilton Woods
Veneer Project 4,900,000 4,900,000
Huntsville, Alabama Educational Building
Authority Revenue - Faulkner University Project 1,115,000 1,115,000
Montgomery, Alabama Educational Building
Authority Facilities Revenue - Faulkner
University Project 8,445,000 8,445,000
-----------
18,955,000
CALIFORNIA 4.8%
Alhambra, California Redevelopment Agency
MFHR - Main Street Plaza Apartments Project 3,200,000 3,200,000
California Statewide Communities Development
Authority MFHR Refunding - Poinsettia
Apartments Project 5,000,000 5,000,000
Fairfield, California IDA IDR - Medical Design
Concepts Project 1,200,000 1,200,000
Glenn, California IDA IDR - Land O' Lakes, Inc.
Project 1,900,000 1,900,000
Los Angeles, California Community Redevelopment
Agency Housing Revenue - Ithaka Partners III
Project 1,960,000 1,960,000
Los Angeles, California MFHR - Channel Gateway
Apartments Project 34,100,000 34,100,000
Los Angeles County, California IDA IDR:
Fruitland Associates Project 3,000,000 3,000,000
Seaboard Envelope, Inc. Project 500,000 500,000
Orange County, California Apartment Development
Revenue - Park Place Apartments Project 8,500,000 8,500,000
Orange County, California Apartment Development
Revenue - WLCO LF Partners Project:
Series 1 5,000,000 5,000,000
Series 2 3,200,000 3,200,000
Pasadena, California Community Development
Commission COP:
Kings Plaza Project 615,000 615,000
Lake/Washington Neighborhood Shopping
Center Project 2,555,000 2,555,000
-----------
70,730,000
21
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------
===============================================================================
STRONG MUNICIPAL ADVANTAGE FUND (CONTINUED)
===============================================================================
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
COLORADO 2.5%
Arapahoe County, Colorado IDR - Denver
JetCenter, Inc. Project $ 1,600,000 $ 1,600,000
Colorado HFA EDR - NTA Leasing Company
Project 2,100,000 2,100,000
Fort Collins, Colorado MFHR - The Bull Run
Townhomes Project 3,950,000 3,950,000
Grand Junction, Colorado IDR - Sundstrand
Corporation Project 1,000,000 1,000,000
USBI Trust Pass-Thru Certificates - Series A 28,491,000 28,491,000
------------
37,141,000
FLORIDA 0.6%
Broward County, Florida HFA MFHR:
Parkview Partnership, Ltd. Project 8,500,000 8,500,000
Sawgrass Pines Apartments Project 1,000,000 1,000,000
------------
9,500,000
GEORGIA 0.7%
Floyd County, Georgia Development Authority
PCR Refunding - Inland-Rome Project 4,735,000 4,735,000
Jefferson, Georgia Development Authority IDR -
Sumitomo Plastics America, Inc. Project 5,000,000 5,000,000
------------
9,735,000
ILLINOIS 4.7%
Illinois DFA IDA - Toyomenka (America), Inc.
Project 2,200,000 2,200,000
Illinois DFA IDR - Miyano Machy USA, Inc. Project 7,250,000 7,250,000
Illinois DFA MFHR Refunding:
Cobbler Square Project 7,400,000 7,400,000
Orleans-Illinois Project 29,020,000 29,020,000
Salem, Illinois IDR - Americana Building
Products Project 2,465,000 2,465,000
Woodridge, DuPage and Will Counties, Illinois
MFHR Refunding - Hinsdale Lake Terrace
Apartments Project 20,760,000 20,760,000
------------
69,095,000
INDIANA 0.7%
Madison, Indiana EDR - Arvin Sango, Inc. Project 9,600,000 9,600,000
KANSAS 1.0%
Hays, Kansas Manufacturing Facilities
Development Revenue - Yuasa Exide Battery
Corporation Project 9,500,000 9,500,000
Kansas City, Kansas Private Activity Revenue
Refunding - Inland Container Corporation
Project 5,200,000 5,200,000
------------
14,700,000
MARYLAND 0.4%
Frederick, Maryland GO 6,500,000 6,500,000
MASSACHUSETTS 1.6%
Revere, Massachusetts Housing Authority
MFHR Refunding - Water's Edge
Apartments Project 23,990,000 23,990,000
MINNESOTA 1.0%
Delano, Minnesota IDR - Solar Plastics, Inc. Project 1,960,000 1,960,000
Golden Valley Minnesota IDR Refunding -
Graco, Inc. Project 3,500,000 3,500,000
Rochester, Minnesota IDR Refunding - Seneca
Foods Corporation Project 4,675,000 4,675,000
St. Cloud, Minnesota Housing and Redevelopment
Authority Sales Tax Revenue - Paramount
Theater Project 3,925,000 3,925,000
------------
14,060,000
MISSOURI 0.4%
Jefferson County, Missouri IDA Industrial
Revenue Refunding - Festus Manor Nursing
Home Project 1,525,000 1,525,000
Washington, Missouri IDA IDR - Clemco
Industries Project 5,000,000 5,000,000
------------
6,525,000
NEVADA 1.6%
Henderson Nevada Public Improvement Trust
MFHR Refunding:
Pueblo I Project 11,715,000 11,715,000
Pueblo II Project 11,500,000 11,500,000
Nevada Department of Commerce IDR -
Master-Halco, Inc. Project 300,000 300,000
------------
23,515,000
NEW MEXICO 0.3%
Sandoval County, New Mexico MFHR -
Arrowhead Ridge Apartments Project 4,000,000 4,000,000
NEW YORK 0.7%
Ontario County, New York Industrial Development
Agency IDR Refunding - Seneca Foods
Corporation Project 5,185,000 5,185,000
Wayne County, New York IDA IDR - Seneca
Foods Corporation Project 5,060,000 5,060,000
------------
10,245,000
NORTH CAROLINA 8.2%
Mecklenburg County, North Carolina Industrial
Facilities and PCFA Industrial Revenue - Okaya
Shinnichi Corporation of America Project 3,290,000 3,290,000
New Hanover County, North Carolina Industrial
Facilities Revenue - Wilmington Machinery, Inc.
Project 940,000 940,000
Puttable Floating Option Tax-Exempt Receipts,
Series SG P-3 115,040,000 115,038,620
Wake County, North Carolina Industrial Facilities
and PCFA IDR - Aeroglide Corporation Project 1,500,000 1,500,000
------------
120,768,620
OHIO 0.5%
Ohio Housing Finance Agency Refunding - 10
Wilmington Place Project 5,945,000 5,945,000
Trumbull County, Ohio IDR - ATD Corporation
Project 1,250,000 1,250,000
------------
7,195,000
PENNSYLVANIA 0.4%
Allentown, Pennsylvania Redevelopment Authority
MFHR Refunding - Arcadia Associated Project 6,000,000 6,000,000
SOUTH CAROLINA 0.8%
Rock Hill, South Carolina Industrial Revenue -
Willamette Industries, Inc. Project 7,500,000 7,500,000
South Carolina Jobs EDA EDR - B.F. Shaw, Inc.
Project 4,000,000 4,000,000
------------
11,500,000
TENNESSEE 2.5%
Anderson County, Tennessee IDB Revenue -
Becromal of America, Inc. Project 1,965,000 1,965,000
Cocke County, Tennessee IDB IDR - GLI, Inc.
Project 3,310,000 3,310,000
Dover, Tennessee IDB Revenue - Nashville Wire
Products Manufacturing Company Project 3,000,000 3,000,000
Hamilton County, Tennessee IDB Revenue -
Komatsu America Manufacturing Corporation
Project 3,750,000 3,750,000
22
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
STRONG MUNICIPAL ADVANTAGE FUND (CONTINUED)
===============================================================================
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Nashville and Davidson County, Tennessee
Metropolitan Government IDB MFHR Refunding:
Beechwood Apartments Project $ 8,995,000 $ 8,995,000
Graybrook Apartments Project 6,710,000 6,710,000
Smyrna, Tennessee Housing Association, Inc.
MFHR Refunding - Imperial Garden Apartments 9,285,000 9,285,000
--------------
37,015,000
TEXAS 1.2%
Angelina and Neches River Authority Refunding -
Temple-Inland Forest Project 7,350,000 7,350,000
Harris County, Texas Housing Finance Corporation
MFHR - Torrey Chase Apartments Project 5,420,000 5,420,000
San Antonio, Texas Airport Lease Revenue -
Hedrick Beechcraft, Inc. Project 4,100,000 4,100,000
San Antonio, Texas River Industrial Development -
Colin Medical Instrument Corporation Project 500,000 500,000
--------------
17,370,000
UTAH 0.1%
Provo, Utah Housing Authority MFHR -
Branbury Project 1,300,000 1,300,000
WASHINGTON 0.3%
Pilchuck, Washington Development Public
Corporation Industrial Revenue - Kohkoku
USA, Inc. Project 4,000,000 4,000,000
WISCONSIN 0.5%
Janesville, Wisconsin IDR Refunding - Seneca
Foods Corporation Project 7,710,000 7,710,000
--------------
Total Weekly Variable Rate Put Bonds 541,149,620
DAILY VARIABLE RATE PUT BONDS 0.6%
COLORADO 0.3%
Arapahoe County, Colorado MFHR Refunding -
Stratford Station Project 3,900,000 3,900,000
VIRGINIA 0.3%
Richmond, Virginia IDA Revenue - Cogentrix of
Richmond, Inc. Project 5,000,000 5,000,000
--------------
Total Daily Variable Rate Put Bonds 8,900,000
MUNICIPAL MONEY MARKET 3.6%
MULTIPLE STATES
Strong Municipal Money Market Fund (g) 53,800,000 53,800,000
- ------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $951,055,791) 951,581,185
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES (COST $1,501,568,283) 102.8% 1,510,611,695
Other Assets and Liabilities, Net (2.8%) (41,701,794)
- ------------------------------------------------------------------------------
NET ASSETS 100.0% $1,468,909,901
==============================================================================
23
<PAGE>
<TABLE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
- ---------------------------------------------------------------------------------------------
=============================================================================================
STRONG HERITAGE MONEY FUND
=============================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT 1.3%
<S> <C> <C> <C> <C>
Deutsche Bank AG New York, 5.66% $19,750,000 5.77% 4/14/99 $19,737,172
- ---------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT 19,737,172
- ---------------------------------------------------------------------------------------------
COMMERCIAL PAPER 89.0%
Abbey National North America Corporation 17,300,000 5.50 10/27/98 17,151,989
Alpine Securitization Corporation:
(Acquired 8/05/98; Cost $1,976,037)(b) 2,000,000 5.53 10/22/98 1,984,332
(Acquired 8/27/98; Cost $12,957,913)(b) 13,000,000 5.55 9/17/98 12,967,933
American Home Products Corporation
(Acquired 7/06/98; Cost $14,857,771)(b) 15,100,000 5.50 10/19/98 14,989,267
American Honda Finance Corporation 6,000,000 5.52 10/21/98 5,954,000
Anaheim, California Electric System 11,625,000 5.65 9/01/98 11,625,000
Aon Corporation 7,600,000 5.55 9/14/98 7,584,768
4,000,000 5.56 9/01/98 4,000,000
10,000,000 5.57 9/04/98 9,995,358
Ascot Capital Corporation:
(Acquired 7/07/98; Cost $7,658,168)(b) 7,775,000 5.52 10/13/98 7,724,929
(Acquired 7/22/98; Cost $4,931,767)(b) 5,000,000 5.52 10/19/98 4,963,200
(Acquired 8/14/98; Cost $4,927,167)(b) 5,000,000 5.52 11/17/98 4,940,967
Asset Backed Capital Finance, Inc.:
(Acquired 7/09/98; Cost $3,652,344)(b) 3,700,000 5.52 10/01/98 3,682,980
(Acquired 7/14/98; Cost $14,788,400)(b) 15,000,000 5.52 10/15/98 14,898,800
(Acquired 8/14/98; Cost 989,825)(b) 1,000,000 5.55 10/19/98 992,600
Atlas Copco AB:
(Acquired 7/21/98; Cost $4,923,963)(b) 5,000,000 5.53 10/28/98 4,956,221
(Acquired 8/25/98; Cost $2,984,275)(b) 3,000,000 5.55 9/28/98 2,987,513
(Acquired 8/17/98; Cost $5,940,800)(b) 6,000,000 5.55 10/20/98 5,954,675
(Acquired 7/07/98 - 8/05/98;
Cost $4,952,586) (b) 5,000,000 5.56 9/18/98 4,986,872
Banco de Credito Sao Paolo 8,000,000 5.49 1/04/99 7,847,500
Barton Capital Corporation:
(Acquired 7/01/98; Cost $3,841,080)(b) 4,000,000 5.48 3/19/99 3,878,831
(Acquired 7/08/98; Cost $15,845,440)(b) 16,000,000 5.52 9/09/98 15,980,373
Brazos River Authority Texas Pollution
Control Revenue 14,000,000 5.63 12/07/98 14,000,000
7,600,000 5.64 9/09/98 7,600,000
Budget Funding Corporation 6,688,000 5.56 10/16/98 6,641,518
CSC Enterprises 2,000,000 5.53 10/07/98 1,988,940
6,000,000 5.54 9/24/98 5,978,763
Calcasieu Parish, Inc. Louisiana IDB
Environmental Revenue 12,000,000 5.62 10/14/98 12,000,000
4,000,000 5.63 11/12/98 4,000,000
Calcot, Ltd. 4,000,000 5.65 9/22/98 3,986,817
California PCFA Environmental Improvement Revenue:
(Acquired 7/10/98; Cost $13,400,000)(b) 13,400,000 5.61 11/09/98 13,400,000
(Acquired 7/15/98; Cost $14,650,000)(b) 14,650,000 5.62 12/08/98 14,650,000
Centre Square Funding Corporation
(Acquired 8/17/98; Cost $5,973,030)(b) 6,000,000 5.58 9/15/98 5,986,980
Centric Capital Corporation
(Acquired 7/13/98; Cost $9,040,938)(b) 9,300,000 5.51 1/11/99 9,112,109
(Acquired 8/04/98; Cost $1,479,032)(b) 1,500,000 5.53 11/03/98 1,485,484
(Acquired 8/28/98; Cost $5,419,191)(b) 5,441,000 5.55 9/23/98 5,422,546
Certain Funding Corporation
(Acquired 7/22/98; Cost $6,910,752)(b) 7,000,000 5.53 10/13/98 6,954,838
(Acquired 7/06/98; Cost $4,064,379)(b) 4,110,000 5.55 9/16/98 4,100,496
CIGNA Corporation 10,625,000 5.54 10/26/98 10,535,071
Commonwealth Bank Australia 5,500,000 5.46 12/31/98 5,399,066
Cooper Industries, Inc. 16,190,000 5.85 9/01/98 16,190,000
Cooperative Association Tractor Dealers, Inc.:
Series A 2,100,000 5.52 11/18/98 2,074,884
3,000,000 5.53 10/21/98 2,976,958
11,000,000 5.53 10/30/98 10,900,306
3,100,000 5.55 9/17/98 3,092,353
Series B 5,000,000 5.52 11/19/98 4,939,433
8,500,000 5.53 10/13/98 8,445,161
4,800,000 5.53 10/27/98 4,758,709
2,775,000 5.54 9/17/98 2,768,167
Countrywide Funding Corporation 6,900,000 5.55 9/30/98 6,869,151
5,000,000 5.56 10/29/98 4,955,211
24
<PAGE>
- ---------------------------------------------------------------------------------------------
=============================================================================================
STRONG HERITAGE MONEY FUND (CONTINUED)
=============================================================================================
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------
Den Norske Bank $12,050,000 5.50% 10/29/98 $11,943,158
Duke Capital Corporation:
(Acquired 7/15/98; Cost $3,942,960)(b) 4,000,000 5.52 10/16/98 3,972,400
(Acquired 7/22/98; Cost $6,582,885)(b) 6,675,000 5.52 10/20/98 6,624,849
(Acquired 8/14/98; Cost $6,905,204)(b) 7,000,000 5.54 11/10/98 6,924,594
Edison Asset Securitization LLC
(Acquired 7/23/98; Cost $17,206,947)(b) 17,700,000 5.51 1/21/99 17,315,310
Enterprise Funding Corporation
(Acquired 7/14/98; Cost $1,288,239)(b) 1,300,000 5.52 9/11/98 1,298,007
Eureka Securitization, Inc. (Acquired
7/20/98; Cost $2,771,992)(b) 2,800,000 5.54 9/23/98 2,790,520
Fina Oil & Chemical Company:
(Acquired 8/24/98; Cost $5,941,725)(b) 6,000,000 5.55 10/26/98 5,949,125
(Acquired 8/06/98; Cost $7,243,628)(b) 7,300,000 5.56 9/25/98 7,272,941
(Acquired 8/04/98; Cost $4,260,817)(b) 4,300,000 5.56 10/02/98 4,279,413
Finova Capital Corporation 4,599,000 5.54 10/22/98 4,562,906
2,600,000 5.55 9/10/98 2,596,393
9,000,000 5.55 11/04/98 8,911,200
Ford Motor Credit Company 11,500,000 5.44 2/12/99 11,215,004
Franklin Resources, Inc.:
(Acquired 7/10/98; Cost $4,925,003)(b) 5,000,000 5.51 10/16/98 4,965,563
(Acquired 7/06/98; Cost $4,929,467)(b) 5,000,000 5.52 10/06/98 4,973,167
(Acquired 7/23/98; Cost $4,931,000)(b) 5,000,000 5.52 10/21/98 4,961,667
(Acquired 6/23/98; Cost $1,432,818)(b) 1,450,000 5.54 9/08/98 1,448,438
Frigate Funding Corporation:
(Acquired 8/19/98; Cost $2,986,075)(b) 3,000,000 5.57 9/18/98 2,992,109
(Acquired 8/25/98; Cost $1,987,003)(b) 2,000,000 5.57 10/06/98 1,989,169
GTE Corporation:
(Acquired 8/28/98; Cost $2,488,052)(b) 2,500,000 5.55 9/28/98 2,489,594
(Acquired 8/14/98; Cost $7,956,756)(b) 8,000,000 5.56 9/18/98 7,978,996
(Acquired 8/10/98; Cost $11,645,693)(b) 11,700,000 5.57 9/09/98 11,685,518
General Electric Capital Corporation 12,200,000 5.43 1/28/99 11,925,815
General Motors Acceptance Corporation 3,200,000 5.50 11/16/98 3,162,844
11,000,000 5.50 1/15/99 10,771,444
Golden Funding Corporation Series B:
(Acquired 8/24/98; Cost $10,850,221)(b) 10,950,000 5.56 10/22/98 10,863,751
(Acquired 8/27/98; Cost $6,961,889)(b) 7,000,000 5.60 10/01/98 6,967,333
Goldman Sachs Group LP 19,800,000 5.48 11/24/98 19,546,824
Greenwich Funding Corporation (Acquired
3/26/98 - 4/14/98; Cost $6,092,653)(b) 6,339,000 5.46 12/18/98 6,235,257
Gulf Coast Waste Disposal Authority PCR 5,000,000 5.59 11/10/98 5,000,000
5,000,000 5.64 10/23/98 5,000,000
Halifax PLC 14,500,000 5.45 1/04/99 14,225,608
Harley-Davidson Funding Corporation:
(Acquired 8/13/98; Cost $2,762,150)(b) 2,800,000 5.53 11/09/98 2,770,322
(Acquired 8/31/98; Cost $9,912,283)(b) 10,000,000 5.54 10/27/98 9,913,822
(Acquired 8/06/98; Cost $5,967,625)(b) 6,000,000 5.55 9/10/98 5,991,675
Harris County, Texas Industrial
Development Corporation Solid Waste
Disposal Revenue:
(Acquired 7/09/98; Cost $4,000,000)(b) 4,000,000 5.62 11/10/98 4,000,000
(Acquired 8/11/98; Cost $8,000,000)(b) 8,000,000 5.62 12/03/98 8,000,000
(Acquired 7/15/98; Cost $3,000,000)(b) 3,000,000 5.67 12/04/98 3,000,000
(Acquired 7/31/98; Cost $5,000,000)(b) 5,000,000 5.68 12/10/98 5,000,000
Heller Financial, Inc. 10,000,000 5.64 11/23/98 9,869,967
4,100,000 5.65 9/16/98 4,090,348
Henkel Corporation:
(Acquired 7/23/98; Cost $7,820,098)(b) 8,000,000 5.47 12/18/98 7,868,720
(Acquired 8/07/98; Cost $4,894,775)(b) 5,000,000 5.49 12/23/98 4,913,838
Household International, Inc. (Acquired
7/16/98; Cost $14,390,465) (b) 14,500,000 5.55 9/03/98 14,495,529
ING America Insurance Holdings, Inc. 7,525,000 5.54 9/04/98 7,521,526
IPALCO Enterprises (Acquired 7/17/98;
Cost $15,812,871) (b) 16,000,000 5.54 10/01/98 15,926,133
International Securitization Corporation:
(Acquired 7/16/98; Cost $3,548,510)(b) 3,650,000 5.50 1/15/99 3,574,161
(Acquired 8/20/98; Cost $3,991,998)(b) 4,000,000 5.54 9/02/98 3,999,384
(Acquired 8/04/98; Cost $13,920,142)(b) 14,000,000 5.55 9/10/98 13,980,575
Johnson Controls, Inc. (Acquired 8/31/98;
Cost $8,148,642)(b) 8,150,000 6.00 9/01/98 8,150,000
KZH IV Corporation (Acquired 8/24/98;
Cost $2,206,599)(b) 2,258,000 5.50 1/20/99 2,209,359
KZH Holding Corporation III (Acquired
8/06/98; Cost $9,859,456)(b) 10,000,000 5.56 11/05/98 9,899,611
KZH-ING-1 Corporation (Acquired 7/29/98;
Cost $6,901,442)(b) 7,000,000 5.57 10/28/98 6,938,266
25
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
- ---------------------------------------------------------------------------------------------
=============================================================================================
STRONG HERITAGE MONEY FUND (CONTINUED)
=============================================================================================
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------
KZH-Pamco Corporation:
(Acquired 8/06/98; Cost $6,007,091)(b) $ 6,087,000 5.56% 10/30/98 $ 6,031,534
(Acquired 8/19/98; Cost $2,327,457)(b) 2,350,000 5.57 10/20/98 2,332,184
Kitty Hawk Funding Corporation:
(Acquired 4/23/98; Cost $2,439,111)(b) 2,500,000 5.48 9/30/98 2,488,964
(Acquired 4/02/98; Cost $9,664,193)(b) 9,925,000 5.50 9/21/98 9,894,674
(Acquired 8/17/98; Cost $5,022,065)(b) 5,040,000 5.57 9/09/98 5,033,762
Knight Ridder, Inc.:
(Acquired 6/26/98; Cost $11,057,414)(b) 11,300,000 5.56 11/12/98 11,174,344
5,000,000 5.56 11/13/98 4,943,628
4,000,000 5.58 10/23/98 3,967,760
Lexington Parker Capital Corporation:
(Acquired 8/13/98; Cost $5,851,770)(b) 6,000,000 5.49 1/22/99 5,869,155
(Acquired 7/16/98; Cost $9,869,324)(b) 10,150,000 5.50 1/13/99 9,942,207
(Acquired 8/31/98; Cost $3,998,077)(b) 4,000,000 5.77 9/03/98 3,998,718
Lloyds Bank PLC 15,750,000 5.41 2/22/99 15,338,164
3,000,000 5.47 12/31/98 2,944,844
Market Street Funding Corporation:
(Acquired 7/23/98; Cost $11,406,205)(b) 11,500,000 5.54 9/14/98 11,476,994
(Acquired 8/26/98; Cost $5,050,466)(b) 5,100,000 5.55 10/28/98 5,055,184
(Acquired 8/27/98; Cost $5,266,198)(b) 5,300,000 5.60 10/07/98 5,270,320
Martin Marietta Materials, Inc.:
(Acquired 8/05/98; Cost $6,956,756)(b) 7,000,000 5.56 9/14/98 6,985,946
(Acquired 8/06/98; Cost $9,936,678)(b) 10,000,000 5.56 9/16/98 9,976,833
(Acquired 8/26/98; Cost $4,966,675)(b) 5,000,000 5.58 10/08/98 4,971,325
Merrill Lynch & Company, Inc. 1,260,000 5.49 11/06/98 1,247,318
Minolta Corporation 7,000,000 5.62 9/10/98 6,990,165
Morgan JP & Company, Inc. 21,000,000 5.50 10/05/98 20,890,917
National Fuel Gas Company 6,500,000 5.55 9/11/98 6,489,979
6,620,000 5.57 9/18/98 6,602,588
Nationwide Building Society 7,250,000 5.47 12/09/98 7,140,942
9,625,000 5.50 11/30/98 9,492,656
New York Life Capital Corporation:
(Acquired 6/09/98; Cost $4,616,967)(b) 4,750,000 5.45 12/11/98 4,677,371
(Acquired 7/14/98; Cost $14,768,542)(b) 15,000,000 5.50 10/23/98 14,880,833
Oakland-Alameda County, California
Coliseum Authority:
Series A-1 5,000,000 5.58 10/14/98 5,000,000
Series B-1 15,000,000 5.58 9/08/98 15,000,000
1,300,000 5.60 9/15/98 1,300,000
Oklahoma State IFA 8,020,000 5.72 11/02/98 8,020,000
Old Line Funding Corporation (Acquired
7/27/98; Cost $13,900,359)(b) 14,000,000 5.57 9/11/98 13,978,339
Parker-Hannifin Corporation (Acquired
8/28/98; Cost $7,774,748)(b) 7,800,000 5.55 9/18/98 7,779,558
Peacock Funding Corporation:
(Acquired 8/17/98; Cost $5,856,083)(b) 6,000,000 5.50 1/21/99 5,869,833
(Acquired 6/19/98; Cost $3,449,017)(b) 3,500,000 5.52 9/22/98 3,488,730
(Acquired 8/14/98; Cost $4,631,537)(b) 4,700,000 5.52 11/17/98 4,644,509
(Acquired 5/21/98; Cost $3,904,761)(b) 4,000,000 5.53 10/23/98 3,968,049
(Acquired 8/18/98; Cost $1,971,736)(b) 2,000,000 5.53 11/18/98 1,976,037
Pitney Bowes Credit Corporation 46,000 5.25 Upon Demand 46,000
SAFECO Credit Corporation 10,000,000 5.52 10/19/98 9,926,400
5,000,000 5.53 11/05/98 4,950,076
5,250,000 5.55 10/09/98 5,219,244
E.W. Scripps Company (Acquired 8/12/98;
Cost $7,787,667) (b) 8,000,000 5.46 2/03/99 7,811,933
Sigma Finance, Inc.:
(Acquired 7/10/98; Cost $10,732,092)(b) 11,050,000 5.48 1/15/99 10,821,240
(Acquired 6/17/98; Cost $5,007,847)(b) 5,150,000 5.49 12/15/98 5,067,536
Society of New York Hospital Fund, Inc. 4,000,000 5.55 12/10/98 3,938,333
Sotheby's, Inc. 3,500,000 5.55 9/08/98 3,496,223
11,675,000 5.55 10/20/98 11,586,805
Spintab-Swedmortgage AB 8,000,000 5.53 11/19/98 7,902,918
1,000,000 5.53 11/20/98 987,711
12,300,000 5.53 12/10/98 12,111,058
Sunshine State Governmental Financing
Commission 6,000,000 5.52 9/10/98 5,991,720
5,000,000 5.55 11/04/98 4,950,667
Svenska Handelsbanken, Inc. 21,125,000 5.46 10/23/98 20,958,394
TRW, Inc. (Acquired 6/24/98;
Cost $4,452,218)(b) 4,500,000 5.54 9/01/98 4,500,000
Tribune Company (Acquired 6/25/98;
Cost $9,003,024)(b) 9,100,000 5.56 9/02/98 9,098,595
26
<PAGE>
- ---------------------------------------------------------------------------------------------
=============================================================================================
STRONG HERITAGE MONEY FUND (CONTINUED)
=============================================================================================
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------
Triple-A One Funding Corporation:
(Acquired 8/21/98; Cost $4,218,010)(b) $ 4,250,000 5.53% 10/09/98 $ 4,225,192
(Acquired 7/01/98; Cost $4,949,896)(b) 5,000,000 5.55 9/04/98 4,997,688
(Acquired 8/28/98; Cost $3,176,745)(b) 3,192,000 5.55 9/28/98 3,178,713
(Acquired 8/28/98; Cost $2,612,187)(b) 2,620,000 5.65 9/16/98 2,613,832
Tulip Funding Corporation:
(Acquired 8/07/98; Cost $1,974,501)(b) 2,000,000 5.53 10/29/98 1,982,181
(Acquired 7/20/98; Cost $4,547,522)(b) 4,600,000 5.55 10/02/98 4,578,016
(Acquired 7/28/98; Cost $8,251,201)(b) 8,300,000 5.57 9/04/98 8,296,147
UBS Finance, Inc. 6,000,000 5.45 12/14/98 5,905,516
13,000,000 5.47 1/05/99 12,751,115
USAA Capital Corporation 3,450,000 5.42 10/30/98 3,419,354
9,025,000 5.47 10/08/98 8,974,262
Unifunding, Inc. 21,800,000 5.48 10/21/98 21,634,078
Variable Funding Capital Corporation:
(Acquired 7/15/98; Cost $16,125,580)(b) 16,592,000 5.50 1/15/99 16,247,255
(Acquired 8/20/98; Cost $3,105,645)(b) 3,150,000 5.51 11/20/98 3,111,430
Washington Post Company (Acquired
8/13/98; Cost $4,878,444)(b) 5,000,000 5.47 1/20/99 4,892,879
West Baton Rouge Parish, Louisiana:
(Acquired 7/08/98; Cost $4,000,000)(b) 4,000,000 5.62 11/12/98 4,000,000
(Acquired 7/21/98; Cost $7,650,000)(b) 7,650,000 5.66 11/20/98 7,650,000
Windmill Funding Corporation:
(Acquired 8/28/98; Cost $5,032,205)(b) 5,069,000 5.56 10/14/98 5,035,336
(Acquired 8/28/98; Cost $6,081,806)(b) 6,132,000 5.56 10/20/98 6,085,594
Wood Street Funding Corporation:
(Acquired 8/20/98; Cost $4,946,236)(b) 5,000,000 5.53 10/30/98 4,954,685
(Acquired 7/16/98; Cost $5,182,135)(b) 5,250,000 5.54 10/08/98 5,220,107
(Acquired 7/16/98; Cost $4,934,597)(b) 5,000,000 5.54 10/09/98 4,970,761
Yale University 6,250,000 5.53 10/07/98 6,215,438
Yorkshire Building Society 9,000,000 5.46 2/26/99 8,757,030
10,000,000 5.55 9/24/98 9,964,542
- ---------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER 1,332,373,590
- ---------------------------------------------------------------------------------------------
CORPORATE OBLIGATIONS 2.9%
Bank Of America National Association
Phoenix, Arizona Short Term Bank
Notes, Tranche#7, 5.95% 4,000,000 6.00 10/22/98 3,999,733
Beta Finance, Inc. (Acquired 10/21/97;
Cost $20,000,000) (b) 20,000,000 6.00 10/27/98 20,000,000
Wachovia Bank NC NA Short-Term Bank Notes 19,500,000 5.56 1/15/99 19,500,000
- ---------------------------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS 43,499,733
- ---------------------------------------------------------------------------------------------
TAXABLE VARIABLE RATE PUT BONDS 4.1%
Alabama State IDA IDR 1,575,000 5.75 9/3/98 1,575,000
Aurora, Kane & DuPage Counties,
Illinois IDR 3,000,000 5.70 9/3/98 3,000,000
Botsford General Hospital Revenue 2,500,000 5.90 9/1/98 2,500,000
Galliano Marine Services, Inc. 5,040,000 5.75 9/3/98 5,040,000
KinderCare Learning Centers, Inc. 4,500,000 5.72 9/2/98 4,500,000
Kings Glen Apartments LLC 3,325,000 5.75 9/3/98 3,325,000
Maine Regional Waste System, Inc. Solid
Waste Resource Recovery Revenue 2,200,000 5.60 9/2/98 2,200,000
Mississippi Business Finance Corporation
IDR - GE Plastics Project 2,500,000 5.64 9/1/98 2,500,000
Montgomery County, Pennsylvania IDA Revenue 530,000 5.70 9/2/98 530,000
New Jersey EDA EDR - MSNBC/CNBC 9,400,000 5.64 9/1/98 9,400,000
New Jersey Sports & Exposition Authority
Sports Complex Subordinated Refunding
Revenue 2,000,000 5.76 9/1/98 2,000,000
NuFunding, Inc. Health Care Revenue 4,965,000 5.71 9/2/98 4,965,000
Radiation Oncology Partners LLP 2,800,000 5.75 9/3/98 2,800,000
Thayer Properties LLC 3,065,000 5.75 9/3/98 3,065,000
Tifton Mall, Inc. 4,815,000 5.75 9/3/98 4,815,000
WLB LLC 10,000,000 5.75 9/3/98 10,000,000
- ---------------------------------------------------------------------------------------------
TOTAL TAXABLE VARIABLE RATE PUT BONDS 62,215,000
- ---------------------------------------------------------------------------------------------
27
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
- ---------------------------------------------------------------------------------------------
=============================================================================================
STRONG HERITAGE MONEY FUND (CONTINUED)
=============================================================================================
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------
UNITED STATES GOVERNMENT AND AGENCY ISSUES 2.8%
Federal Home Loan Bank Bonds:
5.70%, Due 3/17/99 $12,250,000 5.70% 3/17/99 $ 12,250,000
5.703%, Due 7/07/99 18,000,000 5.71 7/07/99 17,998,943
5.71%, Due 3/04/99 11,375,000 5.71 3/04/99 11,375,000
- ---------------------------------------------------------------------------------------------
TOTAL UNITED STATES GOVERNMENT AND AGENCY ISSUES 41,623,943
- ---------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES, 100.1% 1,499,449,438
Other Assets and Liabilities, Net (0.1%) (2,163,458)
- ---------------------------------------------------------------------------------------------
NET ASSETS 100.0% $1,497,285,980
=============================================================================================
</TABLE>
<TABLE>
=============================================================================================
STRONG INVESTORS MONEY FUND
=============================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT 0.7%
<S> <C> <C> <C> <C>
Deutsche Bank AG New York, 5.66% $ 500,000 5.77% 4/14/99 $ 499,675
- ---------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT 499,675
- ---------------------------------------------------------------------------------------------
COMMERCIAL PAPER 94.2%
Abbey National North America Corporation 800,000 5.50 10/27/98 793,156
Alpine Securitization Corporation
(Acquired 8/27/98; Cost $996,763)(b) 1,000,000 5.55 9/17/98 997,533
Anaheim, California Electric System 750,000 5.65 9/01/98 750,000
Aon Corporation 500,000 5.55 10/23/98 495,992
700,000 5.56 9/01/98 700,000
Ascot Capital Corporation (Acquired
7/07/98; Cost $664,857)(b) 675,000 5.52 10/13/98 670,653
Asset Backed Capital Finance, Inc.
(Acquired 8/14/98; Cost $989,825)(b) 1,000,000 5.55 10/19/98 992,600
Atlas Copco AB:
(Acquired 8/06/98; Cost $497,297)(b) 500,000 5.56 9/10/98 499,305
(Acquired 7/07/98; Cost $988,726)(b) 1,000,000 5.56 9/18/98 997,374
Barton Capital Corporation:
(Acquired 7/01/98; Cost $600,169)(b) 625,000 5.48 3/19/99 606,067
(Acquired 7/08/98; Cost $430,798)(b) 435,000 5.52 9/09/98 434,466
Brazos River Authority Texas PCR 450,000 5.63 12/07/98 450,000
550,000 5.64 9/09/98 550,000
British Gas Capital, Inc. 250,000 5.55 10/16/98 248,266
CSC Enterprises 300,000 5.53 10/07/98 298,341
Calcasieu Parish, Inc. Louisiana IDB
Environmental Revenue 1,000,000 5.62 10/14/98 1,000,000
Calcot, Ltd. 1,000,000 5.65 9/10/98 998,587
California PCFA Environmental Improvement
Revenue (Acquired 7/10/98;
Cost $800,000)(b) 800,000 5.61 11/09/98 800,000
Centric Capital Corporation (Acquired
7/13/98; Cost $583,286) (b) 600,000 5.51 1/11/99 587,878
Certain Funding Corporation (Acquired
7/23/98; Cost $419,506) (b) 425,000 5.54 10/15/98 422,122
CIGNA Corporation 265,000 5.54 10/26/98 262,757
Commonwealth Bank Australia 500,000 5.46 12/31/98 490,824
550,000 5.47 12/08/98 541,810
Cooperative Association Tractor Dealers, Inc.:
Series A 300,000 5.51 12/18/98 295,041
810,000 5.53 10/16/98 804,401
250,000 5.53 11/20/98 246,928
Series B 400,000 5.52 11/19/98 395,155
600,000 5.54 9/17/98 598,523
Countrywide Funding Corporation 700,000 5.53 10/27/98 693,978
Den Norske Bank 280,000 5.50 10/29/98 277,519
Duke Capital Corporation:
(Acquired 7/22/98; Cost $320,515)(b) 325,000 5.52 10/20/98 322,558
(Acquired 8/14/98; Cost $690,520)(b) 700,000 5.54 11/10/98 692,459
Edison Asset Securitization LLC (Acquired
8/11/98; Cost $487,495)(b) 500,000 5.49 1/22/99 489,096
Enterprise Funding Corporation (Acquired
4/30/98; Cost $478,306)(b) 491,000 5.54 10/15/98 487,675
Fina Oil & Chemical Company:
(Acquired 8/18/98; Cost $322,049)(b) 325,000 5.54 10/16/98 322,749
(Acquired 8/24/98; Cost $297,086)(b) 300,000 5.55 10/26/98 297,456
(Acquired 8/04/98; Cost $990,888)(b) 1,000,000 5.56 10/02/98 995,212
28
<PAGE>
- ---------------------------------------------------------------------------------------------
=============================================================================================
STRONG INVESTORS MONEY FUND (CONTINUED)
=============================================================================================
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------
Finova Capital Corporation $ 400,000 5.54% 10/22/98 $ 396,861
250,000 5.55 9/10/98 249,653
550,000 5.58 9/11/98 549,148
Ford Motor Credit Company 150,000 5.44 2/12/99 146,283
Franklin Resources, Inc.:
(Acquired 7/24/98; Cost $246,544)(b) 250,000 5.53 10/22/98 248,041
(Acquired 8/18/98; Cost $570,753)(b) 575,000 5.54 10/05/98 571,991
Frigate Funding Corporation (Acquired
8/25/98; Cost $566,296)(b) 570,000 5.57 10/06/98 566,913
GTE Corporation (Acquired 8/28/98;
Cost $1,094,743)(b) 1,100,000 5.55 9/28/98 1,095,421
General Mills, Inc. 44,000 5.25 Upon Demand 44,000
General Motors Acceptance Corporation 800,000 5.50 11/16/98 790,711
Golden Funding Corporation, Series B:
(Acquired 8/24/98; Cost $1,040,432)(b) 1,050,000 5.56 10/22/98 1,041,730
(Acquired 8/27/98; Cost $696,189)(b) 700,000 5.60 10/01/98 696,733
Goldman Sachs Group, LP 300,000 5.48 11/24/98 296,164
Greenwich Funding Corporation (Acquired
4/14/98; Cost $466,758)(b) 485,000 5.46 12/18/98 477,056
Harley-Davidson Funding Corporation
(Acquired 8/31/98; Cost $991,228)(b) 1,000,000 5.54 10/27/98 991,382
Harris County, Texas IDC Solid Waste
Disposal Revenue:
(Acquired 7/09/98; Cost $560,000)(b) 560,000 5.62 11/10/98 560,000
(Acquired 7/15/98; Cost $400,000)(b) 400,000 5.67 12/04/98 400,000
(Acquired 7/31/98; Cost $250,000)(b) 250,000 5.68 12/10/98 250,000
Heller Financial, Inc. 300,000 5.64 11/23/98 296,099
Henkel Corporation:
(Acquired 7/23/98; Cost $488,756)(b) 500,000 5.47 12/18/98 491,795
(Acquired 8/07/98; Cost $489,478)(b) 500,000 5.49 12/23/98 491,384
Household International, Inc.:
(Acquired 7/02/98; Cost $688,945)(b) 700,000 5.52 10/13/98 695,492
(Acquired 7/16/98; Cost $496,223)(b) 500,000 5.55 9/03/98 499,846
IPALCO Enterprises (Acquired 7/17/98;
Cost $573,217)(b) 580,000 5.54 10/01/98 577,322
International Securitization Corporation:
(Acquired 7/16/98; Cost $291,658)(b) 300,000 5.50 1/15/99 293,767
(Acquired 8/04/98; Cost $397,718)(b) 400,000 5.55 9/10/98 399,445
Johnson Controls, Inc.:
42,300 5.25 Upon Demand 42,300
(Acquired 8/31/98; Cost $659,890)(b) 660,000 6.00 9/01/98 660,000
KZH Crescent 2 Corp (Acquired 7/27/98;
Cost $632,604)(b) 639,000 5.63 9/29/98 636,202
KZH-Soleil Corporation (Acquired 6/30/98;
Cost $1,084,342)(b) 1,100,000 5.57 9/30/98 1,095,064
Kitty Hawk Funding Corporation:
(Acquired 4/23/98; Cost $243,911)(b) 250,000 5.48 9/30/98 248,896
(Acquired 4/02/98; Cost $340,803)(b) 350,000 5.50 9/21/98 348,931
(Acquired 8/17/98; Cost $458,363)(b) 460,000 5.57 9/09/98 459,431
Knight Ridder, Inc.:
(Acquired 6/26/98; Cost $391,413)(b) 400,000 5.56 11/12/98 395,552
780,000 5.56 11/13/98 771,206
450,000 5.58 10/23/98 446,373
Lexington Parker Capital Corporation:
(Acquired 7/16/98; Cost $534,791)(b) 550,000 5.50 1/13/99 538,740
(Acquired 8/31/98; Cost $539,740)(b) 540,000 5.77 9/03/98 539,827
Lloyds Bank PLC 870,000 5.41 2/22/99 847,251
500,000 5.47 12/31/98 490,807
Market Street Funding Corporation:
(Acquired 7/23/98; Cost $297,553)(b) 300,000 5.54 9/14/98 299,400
(Acquired 8/28/98; Cost $990,579)(b) 1,000,000 5.56 10/28/98 991,197
Martin Marietta Materials, Inc. (Acquired
8/06/98; Cost $1,291,768)(b) 1,300,000 5.56 9/16/98 1,296,988
Merrill Lynch & Company, Inc. 250,000 5.49 11/06/98 247,484
Minolta Corporation 1,000,000 5.62 9/10/98 998,595
Morgan JP & Company, Inc. 375,000 5.50 11/02/98 371,448
National Fuel Gas Company 250,000 5.54 11/06/98 247,461
500,000 5.55 9/11/98 499,229
380,000 5.57 9/18/98 379,001
Nationwide Building Society 500,000 5.47 12/09/98 492,479
750,000 5.50 11/30/98 739,688
New York Life Capital Corporation
(Acquired 4/28/98; Cost $487,427)(b) 500,000 5.52 10/09/98 497,087
Oklahoma IFA 500,000 5.72 11/02/98 500,000
Old Line Funding Corporation:
(Acquired 7/21/98; Cost $382,452)(b) 385,000 5.54 9/02/98 384,941
(Acquired 8/21/98; Cost $659,078)(b) 664,000 5.56 10/08/98 660,206
29
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
- ---------------------------------------------------------------------------------------------
=============================================================================================
STRONG INVESTORS MONEY FUND (CONTINUED)
=============================================================================================
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------
Peacock Funding Corporation:
(Acquired 8/17/98; Cost $390,406)(b) $ 400,000 5.50% 1/21/99 $ 391,322
(Acquired 8/14/98; Cost $295,630)(b) 300,000 5.52 11/17/98 296,458
(Acquired 5/21/98; Cost $97,619)(b) 100,000 5.53 10/23/98 99,201
(Acquired 8/18/98; Cost $394,347)(b) 400,000 5.53 11/18/98 395,207
Pitney Bowes Credit Corporation 69,500 5.25 Upon Demand 69,500
SAFECO Credit Corporation 1,000,000 5.55 10/09/98 994,142
Sigma Finance, Inc.:
(Acquired 7/10/98; Cost $242,808)(b) 250,000 5.48 1/15/99 244,824
(Acquired 6/17/98; Cost $680,678)(b) 700,000 5.49 12/15/98 688,791
(Acquired 5/22/98; Cost $320,656)(b) 330,000 5.51 11/23/98 325,808
Society of New York Hospital Fund, Inc. 1,000,000 5.55 12/10/98 984,583
Sotheby's, Inc. 780,000 5.55 10/09/98 775,431
Spintab-Swedmortgage AB 500,000 5.53 11/20/98 493,856
500,000 5.53 12/10/98 492,319
Sunshine State Governmental Financing
Commission 725,000 5.52 9/10/98 724,000
270,000 5.55 11/04/98 267,336
Svenska Handelsbanken, Inc. 750,000 5.46 10/23/98 744,085
TRW, Inc. (Acquired 6/24/98;
Cost $494,691)(b) 500,000 5.54 9/01/98 500,000
Tribune Company (Acquired 6/25/98;
Cost $395,737)(b) 400,000 5.56 9/02/98 399,938
Triple-A One Funding Corporation (Acquired
8/21/98; Cost $272,930)(b) 275,000 5.53 10/09/98 273,395
Tulip Funding Corporation:
(Acquired 7/20/98; Cost $395,437)(b) 400,000 5.55 10/02/98 398,088
(Acquired 7/27/98; Cost $591,490)(b) 600,000 5.55 10/27/98 594,820
USAA Capital Corporation 460,000 5.47 10/08/98 457,414
Unifunding, Inc. 750,000 5.48 10/21/98 744,292
Variable Funding Capital Corporation
(Acquired 7/15/98; Cost $417,912)(b) 430,000 5.50 1/15/99 421,066
West Baton Rouge Parish, Louisiana:
(Acquired 7/08/98; Cost $800,000)(b) 800,000 5.62 11/12/98 800,000
(Acquired 7/21/98; Cost $250,000)(b) 250,000 5.66 11/20/98 250,000
Wood Street Funding Corporation (Acquired
7/16/98; Cost $740,305)(b) 750,000 5.54 10/08/98 745,730
Yorkshire Building Society 1,000,000 5.46 2/26/99 973,003
- ---------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER 65,294,111
- ---------------------------------------------------------------------------------------------
CORPORATE OBLIGATIONS 1.4%
Wachovia Bank NC NA Short-Term Bank Notes 1,000,000 5.56 1/15/99 1,000,000
- ---------------------------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS 1,000,000
- ---------------------------------------------------------------------------------------------
TAXABLE VARIABLE RATE PUT BONDS 2.8%
Kings Glen Apartments LLC 1,000,000 5.75 6/01/28 1,000,000
Radiation Oncology Partners LLP 925,000 5.75 8/01/18 925,000
- ---------------------------------------------------------------------------------------------
TOTAL TAXABLE VARIABLE RATE PUT BONDS 1,925,000
- ---------------------------------------------------------------------------------------------
UNITED STATES GOVERNMENT AND AGENCY ISSUES 1.1%
Federal Home Loan Bank Bonds, 5.70%,
Due 3/17/99 500,000 5.70 3/17/99 500,000
Federal Home Loan Bank Bonds, 5.71%,
Due 3/04/99 250,000 5.71 3/04/99 250,000
- ---------------------------------------------------------------------------------------------
TOTAL UNITED STATES GOVERNMENT AND AGENCY ISSUES 750,000
- ---------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES, 100.2% 69,468,786
Other Assets and Liabilities, Net (0.2%) (179,055)
- ---------------------------------------------------------------------------------------------
NET ASSETS 100.0% $69,289,731
=============================================================================================
</TABLE>
30
<PAGE>
<TABLE>
- ---------------------------------------------------------------------------------------------
=============================================================================================
STRONG MUNICIPAL MONEY MARKET FUND
=============================================================================================
<CAPTION>
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------
MUNICIPAL BONDS 18.7%
ARIZONA 0.1%
<S> <C> <C> <C> <C>
Phoenix, Arizona 4.20% IDA MFHR - Roosevelt
Historic Redevelopment Project $ 2,600,000 4.20% 6/01/99 $ 2,600,000
ARKANSAS 0.4%
Pulaski County, Arkansas 4.125% Public
Facilities Board MFHR - Little Rock
Residential Project 7,250,000 4.13 4/01/99 7,250,000
CALIFORNIA 1.0%
Humbolt County, California 4.375% TRAN 17,000,000 4.00 7/07/99 17,051,808
Montebello, California 4.05% TRAN 4,900,000 4.00 6/30/99 4,901,911
------------
21,953,719
ILLINOIS 6.2%
Lakemoor, Illinois MFHR Mortgage -
Lakemoor Apartments Project:
Series B (e) 50,000,000 5.00 1/27/99 50,000,000
Series C (e) 25,000,000 5.00 1/27/99 25,000,000
Oakbrook Terrace, Illinois MFHR:
Renaissance II Project (e) 15,000,000 4.95 11/03/98 15,000,000
Renaissance III Project (e) 41,820,000 4.95 11/03/98 41,820,000
------------
131,820,000
INDIANA 0.5%
Lawrence, Indiana EDR - Charleston Bay
Project (e) 10,000,000 5.25 10/01/98 10,000,000
KENTUCKY 4.2%
Kentucky Governmental Agencies Cash Flow
Borrowing Program COP 4.40% TRAN 88,538,995 4.00 6/30/99 88,820,340
LOUISIANA 0.5%
Louisiana Public Facilities Authority
MFHR - Southfork Village Apartments
Project (e) 10,500,000 5.15 9/14/98 10,511,214
MISSOURI 0.6%
Missouri Health and Educational Facilities
Municipal Securities Trust Class A
Certificates (e) 13,400,000 4.00 10/01/98 13,400,000
NEW JERSEY 0.7%
Bayonne, New Jersey 5.00% BAN 9,185,000 4.46 9/11/98 9,186,444
Jersey City, New Jersey 4.25% GO 6,390,000 4.02 9/18/98 6,390,707
------------
15,577,151
NEW MEXICO 0.6%
New Mexico MFMR - The Bluffs at Tierra
Contenta Apartments Project (e) 8,780,000 4.30 3/01/99 8,780,000
Sante Fe County, New Mexico MFHR - Villa
Grande Apartments Project (e) 3,000,000 4.00 8/01/99 3,000,000
------------
11,780,000
NEW YORK 3.3%
Municipal Securities Trust Class A Certificates:
Series 10A (e) 11,505,000 4.00 2/02/99 11,505,000
Series 10B (e) 5,730,000 4.00 2/02/99 5,730,000
Onondaga County, New York Industrial
Development Agency Solid Waste Disposal
Facilities Revenue - Solvay Paperboard
II Project (e) 40,000,000 4.10 11/01/98 40,000,000
Syracuse, New York 4.50% RAN 13,200,000 4.00 6/30/99 13,252,779
------------
70,487,779
OKLAHOMA 0.4%
Oklahoma County, Oklahoma 10.25% Industrial
Authority Revenue - Epworth Villa
Project (Putable at $102) 2,860,000 4.87 4/01/99 3,003,215
Washington County, Oklahoma 8.50% Medical
Authority Hospital Revenue - Jane
Phillips Episcopal Hospital Project
(Putable at $102) 5,085,000 4.82 5/01/99 5,305,045
------------
8,308,260
WISCONSIN 0.2%
Menomonie, Wisconsin Area School
District 4.25% TRAN 4,500,000 4.06 9/04/98 4,500,071
- ---------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS 397,008,534
- ---------------------------------------------------------------------------------------------
MUNICIPAL COMMERCIAL PAPER 1.3%
CALIFORNIA 0.9%
California PCFA Environmental Improvement
Revenue - Shell Oil Company Project 20,000,000 5.54 9/04/98 20,000,000
31
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
- ---------------------------------------------------------------------------------------------
=============================================================================================
STRONG MUNICIPAL MONEY MARKET FUND (CONTINUED)
=============================================================================================
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------
ILLINOIS 0.2%
Decatur, Illinois Water Revenue - New
South Water Treatment Project $ 4,400,000 4.25% 9/14/98 $ 4,400,000
PENNSYLVANIA 0.2%
Philadelphia, Pennsylvania GO 4,000,000 4.30 9/14/98 4,000,000
- ---------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COMMERCIAL PAPER 28,400,000
- ---------------------------------------------------------------------------------------------
ANNUAL VARIABLE RATE PUT BONDS 5.1%
ALABAMA 0.1%
Selma, Alabama IDB Solid Waste Disposal
Revenue - International Paper Company
Project 2,900,000 4.20 9/01/99 2,900,000
COLORADO 0.2%
Dove Valley, Colorado Metropolitan
District GO Refunding 4,800,000 4.25 11/01/98 4,800,000
DISTRICT OF COLUMBIA 0.6%
District of Columbia Supplemental Student
Loan Revenue - The Consern Loan Program 11,800,000 4.50 7/01/99 11,800,000
FLORIDA 1.2%
Florida Housing Finance Agency MFHR:
Buena Vista Project 21,170,000 4.01 11/01/98 21,170,000
Wood Forest II Project 4,300,000 4.10 12/01/98 4,300,000
------------
25,470,000
MAINE 0.2%
Jay, Maine Solid Waste Disposal Revenue -
International Paper Company Project 3,575,000 4.20 9/01/99 3,575,000
MASSACHUSETTS 0.4%
Municipal Securities Trust Class A
Certificates - Series 9 8,995,000 4.00 5/05/99 8,995,000
MISSISSIPPI 0.1%
Jones County, Mississippi Solid Waste
Disposal Revenue - International Paper
Company Project 2,900,000 4.20 9/01/99 2,900,000
PUERTO RICO 0.6%
Puerto Rico Industrial, Medical and
Environmental PCFA Revenue - Union
Carbide Corporation Project 12,955,000 4.25 3/15/99 12,955,000
SOUTH CAROLINA 0.5%
Georgetown County, South Carolina PCR -
International Paper Company Project 10,000,000 4.10 9/01/99 10,000,000
TENNESSEE 0.3%
Brownsville, Tennessee IDB IDR -
Dynametal Technologies, Inc. Project 7,000,000 4.20 6/01/99 7,000,000
TEXAS 0.5%
Brazos River Authority Texas
Collateralized PCR Refunding - Texas
Utilities Electric Company Project 6,655,000 4.20 6/18/99 6,652,694
Tarrant County, Texas HFC MFHR - Lincoln
Meadows Project 4,375,000 4.10 12/01/98 4,375,000
------------
11,027,694
MULTIPLE STATES 0.4%
Eastern States Tax-Exempt Mortgage Bond
Trust 4,610,000 5.19 3/01/99 4,610,000
Puttable Floating Option Tax-Exempt
Receipts, Series PPT-7 2,760,000 3.90 3/11/99 2,760,000
------------
7,370,000
- ---------------------------------------------------------------------------------------------
TOTAL ANNUAL VARIABLE RATE PUT BONDS 108,792,694
- ---------------------------------------------------------------------------------------------
SEMI-ANNUAL VARIABLE RATE PUT BONDS 0.6%
KENTUCKY 0.4%
Scottsville, Kentucky IDR - Sumitomo
Electric Wiring Systems, Inc. Project 8,000,000 4.26 11/01/98 8,001,234
NEVADA 0.1%
Nevada Housing Division Single Family
Program - Federally Insured or
Guaranteed Mortgage Loans 2,700,000 4.20 10/01/98 2,700,000
32
<PAGE>
- ---------------------------------------------------------------------------------------------
=============================================================================================
STRONG MUNICIPAL MONEY MARKET FUND (CONTINUED)
=============================================================================================
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------
OKLAHOMA 0.1%
Creek County, Oklahoma Industrial
Authority IDR Refunding - Indiana
Glass Company Project $ 2,005,000 4.45% 12/01/98 $ 2,005,000
WISCONSIN 0.0%
Milwaukee, Wisconsin IDR - Wayne C.
Oldenburg Project 525,000 4.40 2/01/99 525,000
- ---------------------------------------------------------------------------------------------
TOTAL SEMI-ANNUAL VARIABLE RATE PUT BONDS 13,231,234
- ---------------------------------------------------------------------------------------------
QUARTERLY VARIABLE RATE PUT BONDS 2.1%
MINNESOTA 1.8%
Dakota and Washington Counties, Minnesota
Housing and Redevelopment Authority
Bloomington Mortgage Revenue - MERLOT 4,420,000 4.00 12/01/98 4,420,000
Dakota County, Washington County, and
Anoka, Minnesota Housing and
Redevelopment Authorities SFMR - GNMA
Mortgage-Backed Securities Program -
MERLOT 15,680,000 4.00 12/01/98 15,680,000
Eagan, Minnesota Revenue - Allina Health
System and Allina Medical Group Project 4,750,000 4.09 10/01/98 4,750,000
Forest Lake, Minnesota Revenue - Allina
Health System and Allina Medical Group
Project 3,300,000 4.09 10/01/98 3,300,000
Minneapolis, Minnesota Revenue -
Minneapolis Institute of the Arts
Project 5,325,000 4.09 10/01/98 5,325,000
Woodbury, Minnesota Revenue - Allina
Health System and Allina Medical
Group Project 3,900,000 4.09 10/01/98 3,900,000
-----------
37,375,000
OKLAHOMA 0.2%
Oklahoma County, Oklahoma Industrial
Authority Revenue Refunding - Baptist
General Convention of the State of
Oklahoma Retirement Center Project 4,860,000 4.30 12/01/98 4,860,000
WISCONSIN 0.1%
Wisconsin HDA EDA Home Ownership
Revenue - MERLOT 1,760,000 4.00 12/01/98 1,760,000
- ---------------------------------------------------------------------------------------------
TOTAL QUARTERLY VARIABLE RATE PUT BONDS 43,995,000
- ---------------------------------------------------------------------------------------------
MONTHLY VARIABLE RATE PUT BONDS 1.1%
COLORADO 0.1%
Jefferson County, Colorado IDR -
Anthony A. Petrarca/Cedarwood
Construction Company, Inc. Project 2,420,000 4.65 10/01/98 2,420,000
ILLINOIS 0.1%
Green Leaf Ventures, Inc. Tax-Exempt
Bond Grantor Trust 2,000,000 4.60 10/01/98 2,000,000
MARYLAND 0.3%
Prince George's County, Maryland EDR
Refunding - Capital View II LP Facility 6,380,000 4.45 10/01/98 6,380,000
MICHIGAN 0.1%
Michigan Job Development Authority IDR -
Anthony A. Petrarca/Cedarwood
Construction Company, Inc. Project 1,740,000 4.65 10/01/98 1,740,000
OHIO 0.2%
Blue Bell Tax-Exempt Bond Grantor Trust 1,754,919 4.45 10/01/98 1,754,919
Summit County, Ohio Insured IDR - Anthony
A. Petrarca/Cedarwood Construction
Company, Inc. Project 2,625,000 4.65 10/01/98 2,625,000
-----------
4,379,919
MULTIPLE STATES 0.3%
GAF Corporation Tax-Exempt Bond Grantor
Trust 4,300,000 4.35 10/01/98 4,300,000
Johnson Controls, Inc. Tax-Exempt Bond
Grantor Trust 2,345,000 4.50 10/01/98 2,345,000
-----------
6,645,000
- ---------------------------------------------------------------------------------------------
TOTAL MONTHLY VARIABLE RATE PUT BONDS 23,564,919
- ---------------------------------------------------------------------------------------------
WEEKLY VARIABLE RATE PUT BONDS 64.2%
ALABAMA 2.3%
Alabama IDA IDR:
Research Genetics, Inc. Project 3,120,000 3.70 9/08/98 3,120,000
Whitesell Project 4,650,000 3.70 9/08/98 4,650,000
Birmingham, Alabama Baptist Medical
Center - Special Care Facilities
Financing Authority Revenue:
Baptists Health System, Inc. Project 5,830,000 4.00 9/08/98 5,830,000
Methodist Home for the Aging Project 11,670,000 3.60 9/08/98 11,670,000
33
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
- ---------------------------------------------------------------------------------------------
=============================================================================================
STRONG MUNICIPAL MONEY MARKET FUND (CONTINUED)
=============================================================================================
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------
Birmingham, Alabama Medical Clinic
Board - Baptist Medical Centers Medical
Clinic Revenue - Western Medical
Systems, Inc. Project $ 6,235,000 4.00% 9/08/98 $ 6,235,000
Bridgeport, Alabama IDB IDR - Beaulieu
Nylon, Inc. Project 10,000,000 3.80 9/08/98 10,000,000
Madison County, Alabama MFHR Refunding:
Autumn Wood Project 2,840,000 3.57 9/08/98 2,840,000
Pinehurst Project 1,190,000 3.57 9/08/98 1,190,000
Montgomery, Alabama IDB IDR - Asphalt
Contractors, Inc. Project 1,200,000 3.70 9/08/98 1,200,000
Pell, Alabama IDB IDR - Kinder/Gorbel
Project 1,970,000 3.70 9/08/98 1,970,000
------------
48,705,000
ARIZONA 0.3%
Chandler, Arizona IDA MFHR - Greentree
Place Apartments Project 6,452,000 5.77 9/08/98 6,452,000
ARKANSAS 0.4%
Jacksonville, Arkansas - Regal Ware, Inc.
Project 3,000,000 3.90 9/08/98 3,000,000
Searcy, Arkansas IDR - Yarnell Ice Cream
Company, Inc. Project 2,600,000 3.65 9/08/98 2,600,000
Trumann, Arkansas IDR - Roach
Manufacturing Corporation Project 2,000,000 3.65 9/08/98 2,000,000
------------
7,600,000
CALIFORNIA 8.2%
California PCFA PCR Resource Recovery -
Wadham Energy Project:
Series B 11,695,000 3.90 9/08/98 11,695,000
Series C 5,200,000 3.90 9/08/98 5,200,000
Contra Costa County, California MFHR
Refunding GNMA - Del Norte Apartments
Project 6,500,000 4.00 9/08/98 6,500,000
Los Angeles County, California IDA IDR -
Goldberg & Solovy Foods, Inc. Project 2,900,000 5.10 9/08/98 2,900,000
Macon Trust Pooled Certificates 83,510,000 3.66 9/08/98 83,510,000
Ontario, California IDA IDR - P & S
Development Project 2,500,000 3.75 9/08/98 2,500,000
Oxnard, California IDA IDR - O.G.
Dehydrated, Inc. Project 3,050,000 3.66 9/08/98 3,050,000
Paramount, California Housing Authority
MFHR Refunding - Century Place
Apartments Project 8,500,000 4.10 9/08/98 8,500,000
San Bernardino County, California COP -
1992 Justice Center/Airport Improvements
Refunding Project 1,960,000 3.95 9/08/98 1,960,000
San Francisco, California City and County
Redevelopment Agency MFHR - Bayside
Village Project:
Series A 27,100,000 3.95 9/08/98 27,100,000
Series B 3,500,000 3.95 9/08/98 3,500,000
San Marcos, California Redevelopment
Agency MFHR - San Marcos Retirement
Village Project 6,550,000 4.25 9/08/98 6,550,000
Yolo County, California MFHR - Primero
Grove Student Apartments Project 11,715,000 3.80 9/08/98 11,715,000
------------
174,680,000
COLORADO 0.5%
Aurora, Colorado IDR - Optima
Batteries, Inc. Project 3,430,000 3.60 9/08/98 3,430,000
Jefferson County, Colorado IDR -
Accutronics, Inc. Project 2,575,000 3.80 9/08/98 2,575,000
Westminster, Colorado IDR - Lifecare
International Project 4,480,000 3.75 9/08/98 4,480,000
------------
10,485,000
CONNECTICUT 0.5%
Connecticut State Development Authority
Solid Waste Revenue - Exeter, Inc.
Project 10,000,000 4.00 9/08/98 10,000,000
DELAWARE 0.1%
Delaware EDA Industrial Revenue Orient
Chemical Corporation Project 3,020,000 3.95 9/08/98 3,020,000
FLORIDA 1.5%
Bay County, Florida Revenue - Methodist
Homes Project 3,885,000 3.60 9/08/98 3,885,000
Brevard County, Florida IDR - U.S. Space
Camp Foundation Project 3,540,000 3.60 9/08/98 3,540,000
Broward County, Florida HFA MFHR -
Sawgrass Pines Apartments Project 11,000,000 4.00 9/08/98 11,000,000
Dade County, Florida IDA IDR -
Engelhard/ICC Project 8,500,000 4.00 9/08/98 8,500,000
Ithaka Partners II Trust Certificates 4,400,687 3.70 9/08/98 4,400,687
------------
31,325,687
GEORGIA 2.2%
Bibb County, Georgia Certificates 21,000,000 3.41 9/08/98 20,998,740
Cherokee County, Georgia IDA Revenue -
Piolax Corporation Project 6,500,000 4.35 9/08/98 6,500,000
Fulton County, Georgia Development
Authority IDR - STO Corporation Project 3,400,000 3.70 9/08/98 3,400,000
Lee County, Georgia Development Authority
Revenue - Woodgrain Millwork, Inc.
Project 6,000,000 3.85 9/08/98 6,000,000
Newton County, Georgia IDA IDR - Komatsu
Forklift USA, Inc. Project 7,500,000 4.20 9/08/98 7,500,000
Savannah, Georgia EDA IDR - Savannah Steel
& Metal Company Project 1,520,000 3.70 9/08/98 1,520,000
------------
45,918,740
ILLINOIS 1.3%
Arlington Heights, Illinois MFHR
Refunding - Dunton Tower Apartments
Project 7,050,000 4.25 9/08/98 7,050,000
Carol Stream, Illinois IDR - MI
Enterprises Project 2,650,000 3.55 9/08/98 2,650,000
Hazel Crest, Illinois Retirement Center
Revenue - Waterford Estates Project 3,710,000 4.00 9/08/98 3,710,000
34
<PAGE>
- ---------------------------------------------------------------------------------------------
=============================================================================================
STRONG MUNICIPAL MONEY MARKET FUND (CONTINUED)
=============================================================================================
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------
Illinois DFA IDR:
Homak Manufacturing Company, Inc.
Project $ 6,155,000 3.55% 9/08/98 $ 6,155,000
Icon Metalcraft, Inc. Project 2,620,000 3.55 9/08/98 2,620,000
Springfield, Illinois Airport Authority -
Allied-Signal, Inc. Project 4,375,000 3.90 9/08/98 4,375,000
-----------
26,560,000
INDIANA 0.3%
Ashley, Indiana EDR - Trin, Inc. Project 4,000,000 4.00 9/08/98 4,000,000
Brownsburg, Indiana EDR - Zanetis
Enterprises Project 3,000,000 3.60 9/08/98 3,000,000
-----------
7,000,000
IOWA 0.8%
Cedar Rapids, Iowa IDR Refunding First
Program - Columbus McKinnon
Corporation Project 825,000 3.85 9/08/98 825,000
Indianola, Iowa Health Care Facility
Revenue Refunding - The Village Project 5,785,000 3.60 9/08/98 5,785,000
Iowa Finance Authority IDR - First
Cooperative Association Project 3,500,000 3.60 9/08/98 3,500,000
West Des Moines, Iowa Revenue - Woodgrain
Millwork, Inc. Project 6,700,000 3.85 9/08/98 6,700,000
-----------
16,810,000
KANSAS 0.7%
Kansas City, Kansas Private Activity
Revenue - Ex-L-Tube of Kansas, Inc.
Project 5,166,000 3.75 9/08/98 5,166,000
Kansas DFA MFHR - Trails of Garden City
and Cottonwood of Liberal Projects 4,740,000 3.75 9/08/98 4,740,000
Osage City, Kansas Industrial Revenue -
Marley Continental Homes of Kansas
Project 4,800,000 3.58 9/08/98 4,800,000
-----------
14,706,000
KENTUCKY 1.3%
Daviess County, Kentucky MFHR Refunding -
Park Regency Apartments Project 4,155,000 3.60 9/08/98 4,155,000
Hancock County, Kentucky Solid Waste
Disposal Revenue - NSA, Ltd. Project 7,815,000 3.50 9/08/98 7,815,000
Jeffersontown, Kentucky IDR - Columbia
Sussex Corporation Facility 5,525,000 5.00 9/08/98 5,525,000
Somerset, Kentucky IBR - Tibbals Flooring
Company Project 10,000,000 4.10 9/08/98 10,000,000
-----------
27,495,000
LOUISIANA 0.9%
New Orleans, Louisiana Aviation Board
Revenue - Passenger Facility Charge
Project 18,760,000 3.75 9/08/98 18,760,000
MARYLAND 0.4%
Charles County, Maryland Revenue -
Chopp and Company, Inc. Project 3,500,000 3.80 9/08/98 3,500,000
Washington County, Maryland EDR - Tandy
Project 5,100,000 4.25 9/08/98 5,100,000
-----------
8,600,000
MASSACHUSETTS 0.4%
Massachusetts Industrial Finance Agency
IDR - Portland Causeway Realty Trust 2,600,000 4.25 9/08/98 2,600,000
Salem, Massachusetts IDFA IDR - Applied
Extrusion Technologies, Inc. Project 6,500,000 4.25 9/08/98 6,500,000
-----------
9,100,000
MICHIGAN 0.4%
Holland, Michigan EDC - Thrifty Holland,
Inc. Project 7,100,000 4.15 9/08/98 7,100,000
Lansing, Michigan Limited Obligation EDC
IDR - Ashland Oil, Inc. Project 1,400,000 5.44 9/08/98 1,400,000
-----------
8,500,000
MINNESOTA 0.3%
Farmington, Minnesota IDR - WFW
Ventures, LLC Project 1,950,000 3.65 9/08/98 1,950,000
New Brighton, Minnesota IDR - Donatelle
Holdings Project 3,325,000 3.75 9/08/98 3,325,000
Princeton, Minnesota IDR - Plastic
Products Company, Inc. Project 1,400,000 3.75 9/08/98 1,400,000
-----------
6,675,000
MISSISSIPPI 0.5%
Mississippi Business Finance Corporation
IDR - Barclay Furniture Company Project 1,300,000 3.70 9/08/98 1,300,000
Prentiss County, Mississippi IDR -
Heidelberg Eastern Project:
Series A 2,500,000 4.20 9/08/98 2,500,000
Series B 6,650,000 4.30 9/08/98 6,650,000
-----------
10,450,000
MISSOURI 4.3%
Berkeley, Missouri IDA Exempt Facility
Revenue - St. Louis Air Cargo
Services, Inc. Project 12,700,000 4.25 9/08/98 12,700,000
Kansas City, Missouri IDA Facilities
Revenue - KC Air Cargo Service Project 7,400,000 4.25 9/08/98 7,400,000
Missouri Development Finance Board IDR -
MFA, Inc. Project:
Series A 1,990,000 3.60 9/08/98 1,990,000
Series B 765,000 3.60 9/08/98 765,000
Missouri Development Finance Board
Infrastructure Facilities Revenue -
Kansas City, Missouri - Midtown
Redevelopment Project 17,900,000 4.05 9/08/98 17,900,000
Missouri Economic Development Export
and Infrastructure Board Industrial
Development:
Series A 2,560,000 3.70 9/08/98 2,560,000
Series D 3,130,000 3.70 9/08/98 3,130,000
35
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
- ---------------------------------------------------------------------------------------------
=============================================================================================
STRONG MUNICIPAL MONEY MARKET FUND (CONTINUED)
=============================================================================================
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------
St. Charles County, Missouri IDA IDR
Refunding:
Country Club Apartments Project $25,000,000 3.56% 9/08/98 $25,000,000
Remington Apartments Project 12,700,000 4.11 9/08/98 12,700,000
St. Louis County, Missouri IDA MFHR -
Black Forest Apartments Project 4,000,000 3.52 9/08/98 4,000,000
St. Louis County, Missouri IDA Revenue -
Allied Ring Project 1,625,000 4.05 9/08/98 1,625,000
West Plains, Missouri IDA IDR - West
Plains Manor Project 2,200,000 4.20 9/08/98 2,200,000
-----------
91,970,000
NEBRASKA 0.2%
Douglas County, Nebraska IDR - QO
Chemicals, Inc. Project 3,500,000 4.00 9/08/98 3,500,000
NEVADA 1.0%
Nevada Housing Division Refunding -
Multi-Unit Park Vista Project 21,600,000 4.25 9/08/98 21,600,000
NEW HAMPSHIRE 0.2%
New Hampshire IDA Industrial Facility
Revenue - Ferrofluidics Corporation -
Nashua Series Project 5,000,000 4.05 9/08/98 5,000,000
NEW JERSEY 0.1%
New Jersey EDA EDR - Hickory
Industries, Inc. Project 1,700,000 4.00 9/08/98 1,700,000
NEW MEXICO 0.6%
Bernalillo County, New Mexico MFHR -
Westwood Villas Project 13,360,000 4.30 9/08/98 13,360,000
NORTH CAROLINA 1.7%
Alleghany County, North Carolina
Industrial Facilities and PCFA IDR -
Spring-Ford Knitting Company, Inc.
Project 2,000,000 3.42 9/08/98 2,000,000
Craven County, North Carolina Industrial
Facilities and PCFA IDR - Wheatstone
Corporation Project 3,800,000 3.70 9/08/98 3,800,000
Gaston County, North Carolina Industrial
Facilities and PCFA IDR - Spring-Ford
Knitting Company, Inc. Project 3,995,000 3.42 9/08/98 3,995,000
Guilford County, North Carolina Industrial
Facilities and PCFA IDR - Bonset America
Corporation Project 5,800,000 4.20 9/08/98 5,800,000
Hoke County, North Carolina Industrial
Facilities and PCFA IDR - Triangle
Building Supply, Inc. Project 2,375,000 3.70 9/08/98 2,375,000
Mecklenburg County, North Carolina
Industrial Facilities and PCFA Industrial
Revenue - Murata Wiedemann, Inc. Project 5,300,000 4.20 9/08/98 5,300,000
North Carolina Agricultural Finance
Authority Agricultural Development - J.E.
Jones Lumber Company Project 1,800,000 3.70 9/08/98 1,800,000
North Carolina Ports Authority Exempt
Facility Revenue - Jordan Lumber & Supply,
Inc. Project 4,815,000 3.70 9/08/98 4,815,000
Rutherford County, North Carolina Industrial
Facilities and PCFA IDR - Spring-Ford
Industries, Inc. Project 6,650,000 3.42 9/08/98 6,650,000
-----------
36,535,000
OHIO 0.6%
Butler County, Ohio MFHR Floating Rate
Registered Trusts 7,825,000 3.90 9/08/98 7,825,000
Cuyahoga County, Ohio IDR - Edge Seal
Technologies, Inc. and One Industry
Drive, Inc. Project 2,480,000 3.65 9/08/98 2,480,000
Gallia County, Ohio IDR - Harsco
Corporation Project 3,500,000 3.65 9/08/98 3,500,000
-----------
13,805,000
OKLAHOMA 0.7%
Broken Arrow, Oklahoma EDA IDR - Paragon
Films, Inc. Project 7,030,000 3.58 9/08/98 7,030,000
Oklahoma City, Oklahoma Industrial and
Cultural Facilities Trust Revenue -
Oklahoma City University Project 8,500,000 4.08 9/08/98 8,500,000
-----------
15,530,000
PENNSYLVANIA 2.4%
Montgomery County, Pennsylvania IDA IDR
Refunding - Spring City LP Project 5,000,000 4.20 9/08/98 5,000,000
Pennsylvania Higher Educational Facilities
Authority Health Services Revenue -
Allegheny Delaware Valley Obligated Group
Project 23,400,000 4.25 9/08/98 23,400,000
Philadelphia, Pennsylvania IDA Revenue -
30th Street Station Project 23,100,000 3.90 9/08/98 23,100,000
-----------
51,500,000
SOUTH CAROLINA 1.4%
Charleston County, South Carolina
Industrial Revenue - Tandy Corporation
Project 1,000,000 5.10 9/08/98 1,000,000
Fairfield County, South Carolina
Industrial Revenue - Fuji Copian
Corporation Project 9,000,000 4.25 9/08/98 9,000,000
Richland County, South Carolina IDR -
Ashland Oil Project 1,400,000 5.44 9/08/98 1,400,000
South Carolina Jobs EDA EDR:
Galvstar, LLC Project 2,650,000 3.70 9/08/98 2,650,000
Glo-Tex Chemicals, Inc. Project 2,840,000 3.70 9/08/98 2,840,000
36
<PAGE>
- ---------------------------------------------------------------------------------------------
=============================================================================================
STRONG MUNICIPAL MONEY MARKET FUND (CONTINUED)
=============================================================================================
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------
South Carolina Jobs EDA IDR:
Quoizel, Inc. Project $ 8,000,000 3.70% 9/08/98 $ 8,000,000
Roller Bearing Company of America,
Inc. Project 5,000,000 4.16 9/08/98 5,000,000
-----------
29,890,000
SOUTH DAKOTA 3.7%
Aberdeen, South Dakota IDR - Lomar
Development Company Project 220,000 4.10 9/08/98 220,000
Brookings, South Dakota IDR - Lomar
Development Company Project 250,000 3.90 9/08/98 250,000
Brookings, South Dakota IDR - Lomar
Development Company Project 2,080,000 4.10 9/08/98 2,080,000
South Dakota HDA Homeownership Mortgage 6,700,000 3.50 9/08/98 6,700,000
South Dakota HDA SFMR Draw Down Trust
Indenture 27,935,000 4.26 9/08/98 27,935,000
South Dakota HDA SFMR Draw Down Trust
Indenture 40,955,000 4.41 9/08/98 40,955,000
-----------
78,140,000
TENNESSEE 1.0%
Carter County, Tennessee IDB MFHR
Refunding - Willow Run Apartments
Project 6,675,000 3.60 9/08/98 6,675,000
Hamilton County, Tennessee IDB MFHR -
The Waterford Place Apartments Project 9,600,000 3.71 9/08/98 9,600,000
Knox County, Tennessee Health, Education
and Housing Facilities Board Revenue -
Holston Long Term Care Project 4,200,000 4.05 9/08/98 4,200,000
-----------
20,475,000
TEXAS 1.9%
Austin County, Texas IDC IDR - Gulf States
Toyota, Inc. Project 4,250,000 4.20 9/08/98 4,250,000
Azle, Texas IDA IDR - Tandy Corporation
Project 3,000,000 4.25 9/08/98 3,000,000
Dallas, Texas IDC IDR - CR/PL, Inc.
Project 2,900,000 3.70 9/08/98 2,900,000
Deer Park, Texas Port Development
Corporation IDR - Ashland Oil, Inc.
Project 4,700,000 5.44 9/08/98 4,700,000
Grand Prairie, Texas IDA IDR -
Precision/API Ketema Project 3,400,000 3.50 9/08/98 3,400,000
Harris County, Texas IDC IDR :
Chusei USA, Inc. Project 1,400,000 3.95 9/08/98 1,400,000
National Bedding Company Project 3,000,000 3.80 9/08/98 3,000,000
Longview, Texas Industrial Corporation
IDR - Longview Guest Inn Project 2,200,000 3.65 9/08/98 2,200,000
Montgomery County, Texas IDC IDR - Porous
Media, Ltd. Project 3,400,000 3.80 9/08/98 3,400,000
Robertson County, Texas IDC IDR - CR/PL,
Inc. Project 2,345,000 3.70 9/08/98 2,345,000
Robstown, Texas IDC IDR - Concrete Pipe
and Products Company, Inc. Project 2,000,000 3.75 9/08/98 2,000,000
Waco, Texas IDC IDR - Chad A. Greif
Trust Project 7,000,000 3.65 9/08/98 7,000,000
-----------
39,595,000
VIRGINIA 0.6%
Oyster Point, Virginia Development
Corporation MFHR - Jefferson Point
Development Project 5,200,000 3.65 9/08/98 5,200,000
Richmond, Virginia Redevelopment and
Housing Authority Tobacco Row Revenue 7,000,000 3.65 9/08/98 7,000,000
-----------
12,200,000
WASHINGTON 0.3%
Pierce County, Washington EDC - Brown &
Haley Project 1,560,000 4.60 9/08/98 1,560,000
Port Moses Lake, Washington Public
Corporation Industrial Revenue - Basic
American Foods Project 4,200,000 3.90 9/08/98 4,200,000
-----------
5,760,000
WISCONSIN 1.5%
Ashwaubenon, Wisconsin IDR - Pioneer Metal
Finishing, Inc. Project 1,615,000 4.00 9/08/98 1,615,000
Columbus, Wisconsin IDR - Maysteel
Corporation Project 2,000,000 3.70 9/08/98 2,000,000
Combined Locks, Wisconsin IDR - Appleton
Papers, Inc. Project 4,300,000 3.50 9/08/98 4,300,000
De Pere, Wisconsin IDR - Cleaning Systems,
Inc. Project 4,000,000 3.55 9/08/98 4,000,000
Ladysmith, Wisconsin Solid Waste Disposal
Facility Revenue - Cityforest
Corporation Project 7,500,000 4.00 9/08/98 7,500,000
Milwaukee, Wisconsin Redevelopment
Authority Development Revenue -
Washington Square Phase III Project 8,180,000 4.40 9/08/98 8,180,000
New London, Wisconsin IDR - Steel King
Industries, Inc. Project 3,510,000 3.75 9/08/98 3,510,000
-----------
31,105,000
WYOMING 0.3%
Campbell County, Wyoming IDR - Powder
Basin Properties Project 6,005,000 3.65 9/08/98 6,005,000
MULTIPLE STATES 18.4%
Capital Realty Investments Tax-Exempt
Fund, Ltd. Floating Rate Certificates:
Series 1996-4 38,770,000 3.58 9/08/98 38,770,000
Series 1996-5 27,135,000 3.53 9/08/98 27,135,000
Clipper Tax-Exempt Certificate Trusts 83,325,000 3.61 9/08/98 83,325,000
Clipper Tax-Exempt Trust COP 29,000,000 3.61 9/08/98 29,000,000
Lehman Brothers, Inc. Floating Pooled
Trust Receipts 35,000,000 3.90 9/08/98 35,000,000
NCNB Pooled Tax-Exempt Trust COP 1,900,000 4.25 9/08/98 1,900,000
37
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) AUGUST 31, 1998 (UNAUDITED)
- ---------------------------------------------------------------------------------------------
=============================================================================================
STRONG MUNICIPAL MONEY MARKET FUND (CONTINUED)
=============================================================================================
Principal Yield to Maturity Amortized
Amount Maturity Date (d) Cost (Note 2)
- ---------------------------------------------------------------------------------------------
Puttable Floating Option Tax-Exempt
Receipts:
Series PA 154 $27,169,000 3.56% 9/08/98 $ 27,169,000
Series SG P-1 66,000,000 3.65 9/08/98 66,000,000
Series SG P-2 60,000,000 3.65 9/08/98 60,000,000
Series SG P-3 23,000,000 3.80 9/08/98 23,000,000
--------------
391,299,000
- ---------------------------------------------------------------------------------------------
TOTAL WEEKLY VARIABLE RATE PUT BONDS 1,361,811,427
- ---------------------------------------------------------------------------------------------
DAILY VARIABLE RATE PUT BONDS 5.8%
CALIFORNIA 0.4%
Los Angeles County, California Public
Works Financing Authority Lease Revenue 9,000,000 3.90 9/01/98 9,000,000
COLORADO 0.1%
Arapahoe County, Colorado MFHR
Refunding - Stratford Station Project 3,455,000 4.30 9/01/98 3,455,000
MASSACHUSETTS 0.6%
Massachusetts Water Resource Authority
Registered Floating Rate Trusts 12,000,000 4.00 9/01/98 12,000,000
MICHIGAN 2.6%
Detroit, Michigan Water Supply System
Registered Floating Rate Trusts 17,000,000 4.00 9/01/98 17,000,000
Wayne Charter County, Michigan Airport
Revenue:
Floating Rate Receipts, Series SSP-24 12,475,000 3.45 9/01/98 12,475,000
Floating Registered Trusts, Series A-49 25,000,000 4.05 9/01/98 25,000,000
--------------
54,475,000
PENNSYLVANIA 0.4%
Philadelphia, Pennsylvania Authority for
Industrial Development Airport Revenue 8,000,000 4.05 9/01/98 8,000,000
VIRGINIA 0.5%
Richmond, Virginia IDA Revenue -
Cogentrix of Richmond, Inc. Project:
Series A 6,800,000 3.80 9/01/98 6,800,000
Series B 3,500,000 3.80 9/01/98 3,500,000
--------------
10,300,000
WASHINGTON 0.5%
Port Seattle, Washington Passenger
Facilities Charge Revenue Registered
Floating Trusts 10,000,000 4.00 9/01/98 10,000,000
WISCONSIN 0.3%
Milwaukee, Wisconsin Registered Floating
Trust Receipts 6,500,000 4.00 9/01/98 6,500,000
WYOMING 0.4%
Converse County, Wyoming Environmental
Improvement Revenue - PacifiCorp Project 3,500,000 3.65 9/01/98 3,500,000
Sweetwater County, Wyoming Environmental
Improvement Revenue - PacifiCorp Project 4,900,000 3.65 9/01/98 4,900,000
--------------
8,400,000
- ---------------------------------------------------------------------------------------------
TOTAL DAILY VARIABLE RATE PUT BONDS 122,130,000
- ---------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES 98.9% 2,098,933,808
Other Assets and Liabilities, Net 1.1% 22,949,844
- ---------------------------------------------------------------------------------------------
NET ASSETS 100.0% $2,121,883,652
=============================================================================================
</TABLE>
38
<PAGE>
- ------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
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 6 of notes to financial statements).
Percentages are stated as a percent of net assets.
See notes to financial statements.
ABBREVIATIONS
- -------------------------------------------------------------------------------
The following is a list of abbreviations that may be used in the Schedules of
Investments in Securities:
BAN -- Bond Anticipation Notes
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
39
<PAGE>
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
- ----------------------------------------------------------------------------------------------
August 31, 1998 (Unaudited)
(In Thousands, Except Per Share Amounts)
<CAPTION>
STRONG STRONG MUNICIPAL
ADVANTAGE FUND ADVANTAGE FUND
-------------- ----------------
ASSETS:
<S> <C> <C>
Investments in Securities, at Value
Unaffiliated Issuers (Cost of $2,666,227
and $1,447,768, respectively) $2,671,588 $1,456,812
Affiliated Issuers (Cost of $0 and $53,800, respectively) -- 53,800
Receivable for Securities Sold 31,959 --
Receivable for Fund Shares Sold 5,096 1,602
Interest Receivable 27,733 16,216
Other Assets -- 434
---------- ----------
Total Assets 2,736,376 1,528,864
LIABILITIES:
Payable for Securities Purchased 28,145 53,916
Payable for Fund Shares Redeemed 4,692 1,469
Dividends Payable 11,721 4,527
Accrued Operating Expenses and Other Liabilities 3,653 42
---------- ----------
Total Liabilities 48,211 59,954
---------- ----------
NET ASSETS $2,688,165 $1,468,910
========== ==========
NET ASSETS CONSIST OF:
Capital Stock (par value and paid-in capital) $2,699,445 $1,462,488
Accumulated Net Realized Loss (17,094) (2,621)
Net Unrealized Appreciation 5,814 9,043
---------- ----------
Net Assets $2,688,165 $1,468,910
========== ==========
Capital Shares Outstanding (Unlimited Number Authorized) 268,004 291,712
NET ASSET VALUE PER SHARE $10.03 $5.04
====== =====
</TABLE>
<TABLE>
<CAPTION>
STRONG HERITAGE STRONG INVESTORS STRONG MUNICIPAL
MONEY FUND MONEY FUND MONEY MARKET FUND
--------------- ---------------- -----------------
ASSETS:
<S> <C> <C> <C>
Investments in Securities, at
Amortized Cost $1,499,449 $69,469 $2,098,934
Receivable for Securities Sold -- -- 56,902
Interest Receivable 4,047 102 13,148
Other Assets 114 22 670
---------- ------- ----------
Total Assets 1,503,610 69,593 2,169,654
LIABILITIES:
Payable for Securities Purchased -- -- 41,937
Payable for Fund Shares Redeemed 51 -- 75
Dividends Payable 6,226 281 5,558
Accrued Operating Expenses and Other
Liabilities 47 22 200
---------- ------- ----------
Total Liabilities 6,324 303 47,770
---------- ------- ----------
NET ASSETS $1,497,286 $69,290 $2,121,884
========== ======= ==========
NET ASSETS CONSIST OF:
Capital Stock (par value and paid-in
capital) $1,497,286 $69,290 $2,121,884
========== ======= ==========
Capital Shares Outstanding (Unlimited
Number Authorized) 1,497,286 69,290 2,121,884
NET ASSET VALUE PER SHARE $1.00 $1.00 $1.00
===== ===== =====
40
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS
- ----------------------------------------------------------------------------------------------
For the Six Months Ended August 31, 1998 (Unaudited)
(In Thousands)
<CAPTION>
STRONG STRONG MUNICIPAL
ADVANTAGE FUND ADVANTAGE FUND
-------------- ----------------
INCOME:
<S> <C> <C>
Dividends - Unaffiliated Issuers $ 1,600 $ --
Dividends - Affiliated Issuers -- 928
Interest 77,894 27,061
------- -------
Total Income 79,494 27,989
EXPENSES:
Investment Advisory Fees 7,182 3,346
Custodian Fees 38 19
Shareholder Servicing Costs 1,329 154
Other 420 131
------- -------
Total Expenses before Waivers and Absorptions 8,969 3,650
Voluntary Expense Waivers and Absorptions by Advisor -- (602)
------- -------
Expenses, Net 8,969 3,048
------- -------
NET INVESTMENT INCOME 70,525 24,941
REALIZED AND UNREALIZED GAIN (LOSS):
Net Realized Gain (Loss) on:
Investments 1,054 175
Futures Contracts and Options (7,783) --
------- -------
Net Realized (Gain) Loss (6,729) 175
Change in Unrealized Appreciation/Depreciation on:
Investments (8,609) 1,430
Futures Contracts and Options 1,818 --
------- -------
Net Change in Unrealized Appreciation/Depreciation (6,791) 1,430
------- -------
NET GAIN (LOSS) (13,520) 1,605
------- -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $57,005 $26,546
======= =======
</TABLE>
<TABLE>
<CAPTION>
STRONG HERITAGE STRONG INVESTORS STRONG MUNICIPAL
MONEY FUND MONEY FUND MONEY MARKET FUND
--------------- ---------------- -----------------
<S> <C> <C> <C>
INTEREST INCOME $41,498 $1,122 $41,019
EXPENSES:
Investment Advisory Fees 3,657 98 4,943
Custodian Fees 25 5 25
Shareholder Servicing Costs 416 79 1,141
Federal and State Registration Fees 34 25 77
Other 115 17 100
------- ------ -------
Total Expenses before Waivers and
Absorptions 4,247 224 6,286
Voluntary Expense Waivers and Absorptions
by Advisor (2,053) (224) --
------- ------ -------
Expenses, Net 2,194 -- 6,286
------- ------ -------
NET INVESTMENT INCOME AND NET INCREASE IN
NET ASSETS RESULTING FROM OPERATIONS $39,304 $1,122 $34,733
======= ====== =======
41
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- ----------------------------------------------------------------------------------------------
(In Thousands)
STRONG STRONG MUNICIPAL
ADVANTAGE FUND ADVANTAGE FUND
------------------------------ ------------------------------
<CAPTION>
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
AUG. 31, 1998 FEB. 28, 1998 AUG. 31, 1998 FEB. 28, 1998
---------------- ------------- ---------------- -------------
(UNAUDITED) (UNAUDITED)
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income $ 70,525 $ 114,890 $ 24,941 $ 37,590
Net Realized Gain (Loss) (6,729) (7,166) 175 (1,173)
Change in Unrealized
Appreciation/Depreciation (6,791) 5,011 1,430 5,108
---------- ---------- ---------- ----------
Increase in Net Assets Resulting
from Operations 57,005 112,735 26,546 41,525
DISTRIBUTIONS:
From Net Investment Income (70,525) (114,890) (24,941) (37,590)
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold 1,637,608 2,163,729 961,331 1,170,270
Proceeds from Reinvestment of
Distributions 61,451 102,231 21,359 32,175
Payment for Shares Redeemed (1,161,020) (1,619,853) (527,425) (838,603)
---------- ---------- ---------- ----------
Increase in Net Assets from
Capital Share Transactions 538,039 646,107 455,265 363,842
---------- ---------- ---------- ----------
TOTAL INCREASE IN NET ASSETS 524,519 643,952 456,870 367,777
NET ASSETS:
Beginning of Period 2,163,646 1,519,694 1,012,040 644,263
---------- ---------- ---------- ----------
End of Period $2,688,165 $2,163,646 $1,468,910 $1,012,040
========== ========== ========== ==========
TRANSACTIONS IN SHARES OF THE FUND:
Sold 162,459 214,499 191,177 233,361
Issued in Reinvestment of
Distributions 6,094 10,135 4,248 6,415
Redeemed (115,226) (160,610) (104,885) (167,207)
------- ------- ------- -------
Net Increase in Shares of the Fund 53,327 64,024 90,540 72,569
======= ======= ======= =======
</TABLE>
<TABLE>
STRONG HERITAGE STRONG INVESTORS
MONEY FUND MONEY FUND
------------------------------ ------------------------------
<CAPTION>
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
AUG. 31, 1998 FEB. 28, 1998 AUG. 31, 1998 FEB. 28, 1998
---------------- ------------- ---------------- -------------
(UNAUDITED) (UNAUDITED) (NOTE 1)
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income $ 39,304 $ 94,985 $ 1,122 $ 27
DISTRIBUTIONS:
From Net Investment Income (39,304) (94,985) (1,122) (27)
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold 773,004 1,883,618 77,998 9,877
Proceeds from Reinvestment of
Distributions 37,040 91,575 800 --
Payment for Shares Redeemed (796,298) (2,491,811) (16,976) (2,409)
---------- ---------- ------- ------
Increase (Decrease) in Net Assets
from Capital Share Transactions 13,746 (516,618) 61,822 7,468
---------- ---------- ------- ------
TOTAL INCREASE (DECREASE) IN NET
ASSETS 13,746 (516,618) 61,822 7,468
NET ASSETS:
Beginning of Period 1,483,540 2,000,158 7,468 --
---------- ---------- ------- ------
End of Period $1,497,286 $1,483,540 $69,290 $7,468
========== ========== ======= ======
TRANSACTIONS IN SHARES OF THE FUND:
Sold 773,004 1,883,618 77,998 9,877
Issued in Reinvestment of
Distributions 37,040 91,575 800 --
Redeemed (796,298) (2,491,811) (16,976) (2,409)
------- --------- ------ -----
Net Increase (Decrease) in Shares
of the Fund 13,746 (516,618) 61,822 7,468
======= ========= ====== =====
42
See notes to financial statements.
</TABLE>
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- -------------------------------------------------------------------------------
(In Thousands)
STRONG MUNICIPAL
MONEY MARKET FUND
--------------------------------
SIX MONTHS ENDED YEAR ENDED
AUG. 31, 1998 FEB. 28,1998
---------------- ------------
(UNAUDITED)
OPERATIONS:
Net Investment Income $ 34,733 $ 66,146
DISTRIBUTIONS:
From Net Investment Income (34,733) (66,146)
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold 2,541,413 3,432,374
Proceeds from Reinvestment of Distributions 31,018 62,048
Payment for Shares Redeemed (2,321,779) (3,518,087)
---------- ----------
Increase (Decrease) in Net Assets from Capital
Share Transactions 250,652 (23,665)
---------- ----------
TOTAL INCREASE (DECREASE) IN NET ASSETS 250,652 (23,665)
NET ASSETS:
Beginning of Period 1,871,232 1,894,897
---------- ----------
End of Period $2,121,884 $1,871,232
========== ==========
TRANSACTIONS IN SHARES OF THE FUND:
Sold 2,541,413 3,432,374
Issued in Reinvestment of Distributions 31,018 62,048
Redeemed (2,321,779) (3,518,087)
--------- ---------
Net Increase (Decrease) in Shares of the Fund 250,652 (23,665)
========= =========
43
See notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
August 31, 1998 (Unaudited)
1. ORGANIZATION
The accompanying financial statements represent the Strong Cash Management
Funds, which include the following diversified, open-end management
investment companies registered under the Investment Company Act of 1940:
- Strong Advantage Fund, Inc.
- Strong Municipal Advantage Fund (a series of Strong Municipal Funds, Inc.
- Strong Heritage Money Fund (a series of Strong Heritage Reserve Series,
Inc.)
- Strong Investors Money Fund (formerly known as Strong Step 1 Money Fund)
(a series of Strong Heritage Reserve Series, Inc.)
- Strong Municipal Money Market Fund (a series of Strong Municipal Funds,
Inc.)
The inception date for Strong Investors Money Fund is January 31, 1998.
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 Municipal Money
Market Fund, and Strong Investors Money Fund are valued at amortized
cost, which approximates fair value. 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
August 31, 1998 were as follows:
AGGREGATE AGGREGATE PERCENT OF
COST FAIR VALUE NET ASSETS LIQUID*
------------ ------------ ---------- -------
Strong Advantage Fund $973,323,198 $970,418,284 36.1% 81.6%
Strong Heritage Money Fund 728,975,721 732,715,582 48.9% 100.0%
Strong Investors Money Fund 36,642,383 36,840,635 53.2% 100.0%
*Percentage is either Section 4(2) commercial paper or is eligible for
resale pursuant to Rule 144A under the Securities Act of 1933 and also has
been determined to be liquid by the Advisor based upon guidelines
established by the Fund's Board of Directors.
(B) Federal Income and Excise Taxes and Distributions to Shareholders -- The
Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute
substantially all of their taxable income to their shareholders in a
manner which results in no tax cost to the Funds. Therefore, no federal
income or excise tax provision is required.
The character of distributions made during the year from net investment
income or net realized gains 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.
(C) Realized Gains and Losses on Investment Transactions -- 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) 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. 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.
44
<PAGE>
- --------------------------------------------------------------------------------
(E) Options -- The Funds may write put or call options (none were written
during the period). Premiums received by the Funds upon writing put or
call options are recorded as an asset with a corresponding liability which
is subsequently adjusted to the current market value of the option. When
an option expires, is exercised, or is closed, the Funds realize a gain or
loss, and the liability is eliminated. The Funds continue to bear the
risk of adverse movements in the price of the underlying asset during the
period of the option, although any potential loss during the period would
be reduced by the amount of the option premium received.
(F) Foreign Currency Translation -- Investment securities and other assets
and liabilities initially expressed in foreign currencies are converted to
U.S. dollars based upon current exchange rates. Purchases and sales of
foreign investment securities and income are converted to U.S. dollars
based upon currency exchange rates prevailing on the respective dates of
such transactions. The effect of changes in foreign exchange rates on
realized and unrealized security gains or losses is reflected as a
component of such gains or losses.
(G) 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.
(H) 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), purchased 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 transferred
under each repurchase agreement to ensure the value of the collateral
exceeds the amounts owed to the Funds under each repurchase agreement by
at least 2%.
(I) Additional 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.
Foreign denominated assets and forward currency contracts may involve
greater risks than domestic transactions, including currency, political
and economic, regulatory and market risks.
(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 of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements, and the reported amounts of increases
and decreases in net assets from operations during the reporting period.
Actual results could differ from those estimates.
(K) Other -- Investment security transactions are recorded as of the trade
date. Dividend income and distributions to shareholders are recorded on
the ex-dividend date. Interest income is recorded on the accrual basis
and includes amortization of premium and discounts.
3. RELATED PARTY TRANSACTIONS
The Advisor, with whom certain officers and directors of the Funds are
affiliated, provides investment advisory services and shareholder
recordkeeping and related services to the Funds. Investment advisory fees,
which are established by terms of the Advisory Agreements, are based on the
following annualized rates of the average daily net assets: Strong Heritage
Money Fund, Strong Investors Money Fund, and Strong Municipal Money Market
Fund 0.50%, Strong Municipal Advantage Fund and Strong Advantage Fund 0.60%.
Advisory fees are subject to reimbursement by the Advisor if a Fund's
operating expenses exceed certain levels. Shareholder recordkeeping and
related service fees are based on contractually established rates for each
open and closed shareholder account. In addition, the Advisor is compensated
for certain other services related to costs incurred for reports to
shareholders.
45
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
August 31, 1998 (Unaudited)
Strong Advantage Fund and Strong Municipal Advantage Fund may invest cash
reserves 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 for the six months
ended August 31, 1998, excluding the effect of waivers and absorptions, is as
follows:
<TABLE>
<CAPTION>
PAYABLE TO OTHER SHAREHOLDER UNAFFILIATED
ADVISOR AT SERVICING EXPENSES DIRECTORS'
AUGUST 31, 1998 PAID TO ADVISOR FEES
--------------- ------------------ ------------
<S> <C> <C> <C>
Strong Advantage Fund $71,419 $7,857 $10,654
Strong Municipal Advantage Fund 41,072 -- 5,240
Strong Heritage Money Fund 47,763 4,127 7,934
Strong Investors Money Fund 1,252 1,279 750
Strong Municipal Money Market Fund 31,779 8,473 9,494
</TABLE>
4. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of long-term securities for the six months
ended August 31, 1998 were as follows:
<TABLE>
PURCHASES SALES
------------------------------ ----------------------------
<CAPTION>
U.S. GOVERNMENT U.S. GOVERNMENT
AND AGENCY OTHER AND AGENCY OTHER
--------------- -------------- --------------- ------------
<S> <C> <C> <C> <C>
Strong Advantage Fund $130,902,031 $1,402,282,922 $94,562,360 $933,900,178
Strong Municipal Advantage Fund -- 233,806,635 -- 108,886,988
Strong Heritage Money Fund -- -- -- --
Strong Investors Money Fund -- -- -- --
Strong Municipal Money Market Fund -- -- -- --
</TABLE>
5. INCOME TAX INFORMATION
At August 31, the investment cost, gross unrealized appreciation and
depreciation on investments and capital loss carryovers (expiring in varying
amounts through 2006) for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
FEDERAL TAX UNREALIZED UNREALIZED NET NET CAPITAL LOSS
COST APPRECIATION DEPRECIATION APPRECIATION CARRYOVERS
-------------- ------------ ------------ ------------ ----------------
<S> <C> <C> <C> <C> <C>
Strong Advantage Fund $2,666,226,828 $21,921,226 $16,559,883 $5,361,343 $11,182,591
Strong Municipal Advantage Fund 1,501,580,095 9,053,431 21,831 9,031,600 2,796,493
Strong Heritage Money Fund 1,499,449,438 -- -- -- --
Strong Investors Money Fund 69,468,786 -- -- -- --
Strong Municipal Money Market Fund 2,098,933,808 -- -- -- --
</TABLE>
6. INVESTMENTS IN AFFILIATES
Affiliated issuers, as defined under the Investment Company Act of 1940,
include those in which a Fund's holdings represent 5% or more of the
outstanding voting securities of the issuer, and any other Strong Fund. A
summary of transactions in the securities of these issuers during the six
months ended August 31, 1998 is as follows:
<TABLE>
<CAPTION>
BALANCE OF GROSS GROSS SALES BALANCE OF VALUE DIVIDEND INCOME
SHARES HELD PURCHASES AND SHARES HELD AUG. 31, MAR. 1 - AUG. 31,
MAR. 1, 1998 AND ADDITIONS REDUCTIONS AUG. 31, 1998 1998 1998
------------ ------------- ------------- ------------- ----------- -----------------
Strong Municipal Advantage Fund
-------------------------------
<S> <C> <C> <C> <C> <C> <C>
Strong Municipal Money Market Fund 16,100,000 405,200,000 (367,500,000) 53,800,000 $53,800,000 $928,411
</TABLE>
46
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------------------------------------------
STRONG ADVANTAGE FUND
- ------------------------------------------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(a)
--------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
-------------------------------------- ------------------------------------
<CAPTION>
Net Realized
Net Asset and Unrealized Total In Excess Net Asset
Value, Net Gains from From Net of Net Value,
Beginning Investment (Losses) on Investment Investment Realized Total End of
Period Ended of Period Income Investments Operations Income Gains Distributions Period
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aug. 31, 1998(b) $10.08 $0.30 ($0.05) $0.25 ($0.30) -- ($0.30) $10.03
Feb. 28, 1998 10.09 0.62 (0.01) 0.61 (0.62) -- (0.62) 10.08
Feb. 28, 1997 10.03 0.62 0.06 0.68 (0.62) -- (0.62) 10.09
Feb. 29, 1996(c) 10.04 0.10 (0.01) 0.09 (0.10) -- (0.10) 10.03
Dec. 31, 1995 9.98 0.67 0.06 0.73 (0.67) -- (0.67) 10.04
Dec. 31, 1994 10.19 0.55 (0.19) 0.36 (0.55) ($0.02) (0.57) 9.98
Dec. 31, 1993 10.01 0.59 0.18 0.77 (0.59) -- (0.59) 10.19
</TABLE>
RATIOS AND SUPPLEMENTAL DATA
-------------------------------------------------------
Net Ratio of Net
Assets, Ratio of Investment
End of Expenses Income Portfolio
Total Period (In to Average to Average Turnover
Period Ended Return Millions) Net Assets Net Assets Rate
Aug. 31, 1998(b) +2.5% $2,688 0.7%* 5.9%* 44.0%
Feb. 28, 1998 +6.3% 2,164 0.8% 6.2% 109.6%
Feb. 28, 1997 +7.0% 1,520 0.8% 6.2% 154.9%
Feb. 29, 1996(c) +0.9% 1,000 0.8%* 6.3%* 17.2%
Dec. 31, 1995 +7.5% 990 0.8% 6.6% 183.7%
Dec. 31, 1994 +3.6% 911 0.8% 5.6% 221.0%
Dec. 31, 1993 +7.9% 415 0.9% 5.8% 304.8%
* 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 six months ended August 31, 1998 (Unaudited). Total return and
portfolio turnover rate are not annualized.
(c) For the two month period ended February 29, 1996. Total return and
portfolio turnover rate are not annualized.
<TABLE>
STRONG MUNICIPAL ADVANTAGE FUND
- -------------------------------------------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(a)
---------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
-------------------------------------- ------------------------------------
<CAPTION>
Net Asset Net Realized Total Net Asset
Value, Net and Unrealized from From Net From Net Value,
Beginning Investment Gains on Investment Investment Realized Total End of
Period Ended of Period Income Investments Operations Income Gains Distributions Period
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aug. 31, 1998(b) $5.03 $0.11 $0.01 $0.12 ($0.11) -- ($0.11) $5.04
Feb. 28, 1998 5.01 0.22 0.02 0.24 (0.22) -- (0.22) 5.03
Feb. 28, 1997 5.01 0.25 0.00(c) 0.25 (0.25) $0.00(c) (0.25) 5.01
Feb. 29, 1996(d) 5.00 0.06 0.01 0.07 (0.06) -- (0.06) 5.01
</TABLE>
<TABLE>
RATIOS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------------
Net Ratio of Expenses Ratio of Net
Assets, Ratio of to Average Net Investment
End of Expenses Assets Without Income Portfolio
Total Period (In to Average Waivers and to Average Turnover
Period Ended Return Millions) Net Assets Absorptions Net Assets Rate
<S> <C> <C> <C> <C> <C> <C>
Aug. 31, 1998(b) +2.4% $1,469 0.5%* 0.6%* 4.3%* 20.6%
Feb. 28, 1998 +5.0% 1,012 0.4% 0.7% 4.5% 49.6%
Feb. 28, 1997 +5.1% 644 0.0%(c) 0.7% 5.0% 40.8%
Feb. 29, 1996(d) +1.4% 132 0.0%* 0.7%* 4.9%* 17.1%
* 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 six months ended August 31, 1998 (Unaudited). Total return and portfolio turnover rate are not annualized.
(c) Amount calculated is less than $0.01 or 0.1%.
(d) For the period from November 30, 1995 (inception) to February 29, 1996. Total return and portfolio turnover rate
are not annualized.
</TABLE>
<TABLE>
STRONG HERITAGE MONEY FUND
- --------------------------------------------------------------------------------------------------------------------
SELECTED PER-SHARE DATA (a)
--------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
------------------------------------ -------------------------
<CAPTION>
Net Asset Net Realized Total Net Asset
Value, Net Losses from From Net Value,
Beginning Investment on Investment Investment Total Capital End of
Period Ended of Period Income Investments Operations Income Distributions Contribution Period
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aug. 31, 1998(b) $1.00 $0.03 -- $0.03 ($0.03) ($0.03) -- $1.00
Feb. 28, 1998 1.00 0.05 -- 0.05 (0.05) (0.05) -- 1.00
Feb. 28, 1997 1.00 0.06 ($0.01) 0.05 (0.06) (0.06) $0.01 1.00
Feb. 29, 1996(e) 1.00 0.04 -- 0.04 (0.04) (0.04) -- 1.00
</TABLE>
RATIOS AND SUPPLEMENTAL DATA
--------------------------------------------------------------
Net Ratio of Expenses Ratio of Net
Assets, Ratio of to Average Net Investment
End of Expenses Assets Without Income
Total Period (In to Average Waivers and to Average
Period Ended Return Millions) Net Assets Absorptions Net Assets
Aug. 31, 1998(b) +2.7% $1,497 0.3%* 0.6%* 5.3%*
Feb. 28, 1998 +5.6% 1,484 0.2% 0.6% 5.4%
Feb. 28, 1997 +5.7%(c) 2,000 0.1% 0.6% 5.6%
Feb. 29, 1996(e) +4.1% 942 0.0%*(d) 0.6%* 5.9%*
* 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 six months ended August 31, 1998 (Unaudited). Total return is not
annualized.
(c) Had the Advisor not made a capital contribution, the adjusted total return
would have been 5.0% for the fiscal year ended February 28, 1997.
(d) Amount calculated is less than 0.1%.
(e) For the period from June 29, 1995 (inception) to February 29, 1996. Total
return is not annualized.
47
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- ----------------------------------------------------------------------------------------------------
STRONG INVESTORS MONEY FUND
- ----------------------------------------------------------------------------------------------------
SELECTED PER-SHARE DATA (a)
-----------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
--------------------------------- -------------------------
<CAPTION>
Net Asset Total Net Asset
Value, Net from From Net Value,
Beginning Investment Investment Investment Total End of
Period Ended of Period Income Operations Income Distributions Period
<S> <C> <C> <C> <C> <C> <C>
Aug. 31, 1998(b) $1.00 $0.03 $0.03 ($0.03) ($0.03) $1.00
Feb. 29, 1996(d) $1.00 0.00(c) 0.00(c) -- -- 1.00
</TABLE>
RATIOS AND SUPPLEMENTAL DATA
---------------------------------------------------------------
Net Ratio of Expenses Ratio of Net
Assets, Ratio of to Average Net Investment
End of Expenses Assets Without Income
Total Period (In to Average Waivers and to Average
Period Ended Return Millions) Net Assets Absorptions Net Assets
Aug. 31, 1998(b) +2.9% $69 0.0%* 1.1%* 5.7%*
Feb. 29, 1996(d) +0.5% 7 0.0%* 2.0%* 6.1%*
* 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 six months ended August 31, 1998 (Unaudited). Total return is not
annualized.
(c) Amount calculated is less than $0.01.
(d) For the period from January 31, 1998 (inception) to February 28, 1998.
Total return is not annualized.
<TABLE>
STRONG MUNICIPAL MONEY MARKET FUND
- ----------------------------------------------------------------------------------------------------
SELECTED PER-SHARE DATA (a)
-----------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
--------------------------------- -------------------------
<CAPTION>
Net Asset Total Net Asset
Value, Net from From Net Value,
Beginning Investment Investment Investment Total End of
Period Ended of Period Income Operations Income Distributions Period
<S> <C> <C> <C> <C> <C> <C>
Aug. 31, 1998(c) $1.00 $0.02 $0.02 ($0.02) ($0.02) $1.00
Feb. 28, 1998 1.00 0.04 0.04 (0.04) (0.04) 1.00
Feb. 28, 1997 1.00 0.03 0.03 (0.03) (0.03) 1.00
Feb. 29, 1996(d) 1.00 0.01 0.01 (0.01) (0.01) 1.00
Dec. 31, 1995 1.00 0.04 0.04 (0.04) (0.04) 1.00
Dec. 31, 1994 1.00 0.03 0.03 (0.03) (0.03) 1.00
Dec. 31, 1993 1.00 0.02 0.02 (0.02) (0.02) 1.00
</TABLE>
RATIOS AND SUPPLEMENTAL DATA
--------------------------------------------
Net Ratio of Net
Assets, Ratio of Investment
End of Expenses Income
Total Period (In to Average to Average
Period Ended Return Millions) Net Assets Net Assets
Aug. 31, 1998(c) +1.8% $2,122 0.6%* 3.5%*
Feb. 28, 1998 +3.6% 1,871 0.6% 3.5%
Feb. 28, 1997 +3.5% 1,895 0.6% 3.5%
Feb. 29, 1996(d) +0.6% 1,609 0.6%* 3.6%*
Dec. 31, 1995 +4.1% 1,416 0.6% 4.0%
Dec. 31, 1994 +2.9% 1,261 0.6% 2.9%
Dec. 31, 1993 +2.5% 1,173 0.7% 2.5%
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
(b) Tax-exempt for regular federal income tax purposes.
(c) For the six months ended August 31, 1998 (Unaudited). Total return is not
annualized.
(d) For the two month period ended February 29, 1996. Total return is not
annualized.
48
<PAGE>
DIRECTORS
Richard S. Strong
Willie D. Davis
Stanley Kritzik
Marvin E. Nevins
William F. Vogt
OFFICERS
Richard S. Strong, Chairman of the Board
Mary F. Hoppa, Vice President
Thomas P. Lemke, Vice President
John S. Weitzer, Vice President
Stephen J. Shenkenberg, Vice President and Secretary
John A. Flanagan, Treasurer
INVESTMENT ADVISOR
Strong Capital Management, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
DISTRIBUTOR
Strong Funds Distributors, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
CUSTODIAN
Firstar Trust Company
P.O. Box 701, Milwaukee, Wisconsin 53201
TRANSFER AGENT AND DIVIDEND-DISBURSING AGENT
Strong Capital Management, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
411 East Wisconsin Avenue, Milwaukee, Wisconsin 53202
LEGAL COUNSEL
Godfrey & Kahn, S.C.
780 North Water Street, Milwaukee, Wisconsin 53202
<PAGE>
For a prospectus containing more complete information, including management
fees and expenses, please call 1-800-368-1030. Please read it carefully before
investing or sending money. This report does not constitute an offer for the
sale of securities. Strong Funds are offered for sale by prospectus only.
[PICTURE OF TELEPHONE]
To order a free prospectus kit,
CALL 1-800-368-1030
To learn more about our funds,
discuss an existing account,
or conduct a transaction,
CALL 1-800-368-3863
-------------------
If you are a
Financial Professional,
CALL 1-800-368-1683
[PICTURE OF STRONG WEB SITE ON COMPUTER]
Strong On-line
www.strong-funds.com
[STRONG LOGO]
STRONG FUNDS
P.O. Box 2936 o Milwaukee, Wisconsin 53201
Strong Funds Distributors, Inc. 9304J98 98SCSH
