<PAGE> 1
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THE STRONG
INTERNATIONAL
Funds
SEMI-ANNUAL REPORT o APRIL 30, 1996
[PICTURE OF MAP WITH PEOPLE]
THE STRONG SHORT-TERM GLOBAL BOND FUND
THE STRONG INTERNATIONAL BOND FUND
THE STRONG INTERNATIONAL STOCK FUND
THE STRONG ASIA PACIFIC FUND
[STRONG FUNDS LOGO]
STRONG FUNDS
<PAGE> 2
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.
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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.
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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.
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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.
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4. Invest regularly.
Investment 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.
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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.
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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.
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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.
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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> 3
THE STRONG
INTERNATIONAL
Funds
SEMI-ANNUAL REPORT o APRIL 30, 1996
Table of Contents
<TABLE>
<S> <C>
INVESTMENT REVIEWS
The Strong Short-Term Global Bond Fund.............2
The Strong International Bond Fund.................4
The Strong International Stock Fund................6
The Strong Asia Pacific Fund.......................8
FINANCIAL INFORMATION
Schedules of Investments in Securities
The Strong Short-Term Global Bond Fund........10
The Strong International Bond Fund............11
The Strong International Stock Fund...........13
The Strong Asia Pacific Fund..................17
Statements of Operations..........................21
Statements of Assets and Liabilities..............22
Statements of Changes in Net Assets...............23
Notes to Financial Statements.....................24
FINANCIAL HIGHLIGHTS..................................27
</TABLE>
<PAGE> 4
The Strong SHORT-TERM GLOBAL BOND Fund
=======================================
The Strong Short-Term Global Bond Fund seeks total return by investing for a
high level of income with a low degree of share-price fluctuation. The Fund
invests primarily in investment-grade debt obligations of U.S. and foreign
issuers. It normally will pay dividends quarterly and have an average effective
portfolio maturity of three years or less.
Average Annual Total Returns(1)
as of 4-30-96
Strong Short-Term Lipper Short World
Time Period Global Bond Fund Multi-Market "Average"
1-year 11.16% 8.72%
2-year 8.91% 3.88%
Since inception 9.06% 3.64%
(on 3-31-94)
Assets by Credit-Quality Rating
based on net assets as of 4-30-96
AAA 44.1%
AA 8.1%
A 12.0%
BBB 6.0%
BB 9.5%
Short-Term Investments 20.3%
Please see the Schedule of Investments in Securities for a complete
listing of the Fund's portfolio.
THE FUND OUTPERFORMED ITS LIPPER INDEX
The Fund performed well during the six-months ended 4-30-96, posting a
total return of 5.02% in a period marked by bond market volatility. The gain
allowed the Fund to beat its benchmark - the Lipper Short World Multi-Market
"Average" - which gained 3.85% over the same period. The Fund has also bested
the "Average's" return over longer time periods(1).
OUR ACTIVE MANAGEMENT ADDED VALUE
One way we seek to add value in managing the Fund is to compare it to a relevant
unmanaged benchmark index - in this case the Salomon Brothers 1-3 Year World
Government Bond Index (Currency Hedged) - and make strategic adjustments in the
Fund that we believe will give us the edge. Given our economic outlook, we
made a decision to hold a longer duration than that of the index over this
period, which made the Fund more sensitive to interest-rate changes. We also
overweighted our holdings in Europe and below-investment-grade markets versus
the index's weightings. Both of these decisions contributed to the Fund's
outperformance.
INTEREST RATES REVERSED COURSE
Late last year and coming into 1996, we held a moderately bullish stance on
interest rates, and consequently maintained a duration in the Fund that was
longer than that of the index. During the first quarter of this year, however,
interest rates in the U.S. and Japan reversed course and began to head back up.
The yields on both the U.S. and Japanese 10-year government bonds were up by
more than one-half percentage point over the six months ended 4-30-96.
During this six-month period, the major European bond markets rallied as
European central banks actively lowered interest rates. In Italy, the yield on
the government's 10-year bond fell by 1.75 percentage points, from 10.32% to
8.57%. Yields in Germany and France also fell, though less dramatically. We
reduced the Fund's overweighted exposure to European markets early this year,
given our belief that we had already realized the majority of the potential
gains in those markets.
BELOW-INVESTMENT GRADE MARKETS OUTPERFORMED
International bond markets have outperformed the U.S. so far this year, with
the lower-quality markets leading the way; the two top-performing asset classes
in the first four months of 1996 were the stock and bond markets of the
below-investment grade countries:
<TABLE>
<CAPTION>
Index Total Return
<S> <C>
J.P. Morgan Emerging Markets Bond Index 8.98%
Morgan Stanley Capital Emerging
Markets Free Equity Index 9.62%
J.P. Morgan U.S. Government Bond Index(2) -2.44%
</TABLE>
The Fund benefited from our increased weighting in the below-investment-grade
countries, and at the end of April approximately 12% of the Fund's assets were
invested in these markets.
OUR OUTLOOK IS NEUTRAL
We believe that international bond markets provide reasonable value at this
time, and that the economic and inflationary backdrop for foreign bonds is
more favorable than that of the United States. Foreign economies on average are
weaker than the U.S. economy, suggesting that interest rates are likely to
remain flat or perhaps decline further.
Top Five Holdings by Country(3)
based on net assets as of 4-30-96
United States 49.1%
Thailand 10.9%
Mexico 7.9%
Germany 4.4%
Norway 3.8%
Please see the Schedule of Investments in Securities for a complete
listing of the Fund's portfolio.
2
<PAGE> 5
We expect to see moderate economic growth and moderate inflation in the range
of 2% to 3% in the U.S., and for the U.S. dollar to remain in the trading range
we've seen so far this year, with a slightly increased chance of continued
strength versus the Japanese yen. Consequently, we will continue to underweight
Japan, and we expect to maintain neutral allocations versus the index in other
countries.
Currently, we do not expect interest rates to change drastically from present
levels, but we intend to closely monitor the prevailing environment. If we
expect inflation to head higher, and the Federal Reserve appears likely to
stifle incipient inflation by raising rates, we will be ready to take the
necessary defensive steps.
The Fund's returns will fluctuate with changes in bond market conditions,
currency values, interest rates, foreign government regulations and economic
and political conditions in countries in which the Fund invest. Risks are
intensified in emerging markets. For long-term investors, however, we believe
these risks may be outweighted by the benefits of global investing - namely,
higher return potential and lower overall portfolio risk through
diversification, from a U.S.-only portfolio.
We appreciate your investment in the Strong Short-Term Global Bond Fund, and we
look forward to earning your continued confidence.
[Photo of Shirish T. Malekar]
Sincerely,
[Signature of Shirish T. Malekar]
Shirish T. Malekar
Portfolio Manager
================================================================================
Growth of an assumed $10,000 Investment As of 4-30-96
from 3-31-94 to 4-30-96
The Strong Short-Term Global Bond Fund
3-94 10,000
6-94 10,180.00
9-94 10,403.96
12-94 10,512.80
3-95 10,641.12
6-95 11,041.85 ANNUALIZED 30-DAY YIELD (4)
9-95 11,309.09
12-95 11,612.23 7.10%
3-96 11,832.67
4-96 11,979.70 AVERAGE CREDIT QUALITY
AA
Salomon Brothers 1-3 Year World Government
Bond Index (Currency Hedged) AVERAGE EFFECTIVE MATURITY(5)
3-94 10,000
6-94 9,994.99 2.1 years
9-94 10,075.04
12-94 10,152.81
3-95 10,457.30
6-95 10,770.56
9-95 11,005.97
12-95 11,285.64
3-96 11,396.29
4-96 11,461.25
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with a similar investment
in the Salomon Brothers 1-3 Year World Government Bond Index (Currency Hedged),
an unmanaged, market-capitalization weighted index of short-term, global
fixed-income government securities. 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. Source for the index data is
Salomon Brothers.
================================================================================
(1) The Lipper Short World Multi-Market "Average" invests in non-U.S. dollar
and U.S. dollar debt instruments and by policy keeps a dollar-weighted
average maturity of less than 5 years. 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. Source of index data is Lipper Analytical Services, Inc.
(2) Source for the index data is J.P. Morgan Securities, Inc.
(3) The Fund's allocation reflects futures positions held by the Fund.
(4) As of April 30, 1996, the advisor was temporarily waiving management fees
of 0.625% and absorbing expenses of 0.917%. Without these waivers, the
Fund's yield would have been 5.56% and the total return would have been
lower.
(5) The Fund's average maturity includes the effect of futures contracts.
3
<PAGE> 6
The Strong INTERNATIONAL BOND Fund
================================================================================
The Strong International Bond Fund seeks high total return by investing for
both income and capital appreciation. The Fund invests primarily in
non-dollar-denominated, investment-grade debt obligations of foreign issuers.
Normally its average effective maturity will range from four to nine years.
INTERNATIONAL MARKETS OUTPERFORMED THE U.S.
In the six months since our last report, the international bond markets
outperformed the U.S. bond market. As measured by benchmark 10-year bonds,
interest rates fell worldwide-particularly in Europe-a positive for bond prices
in U.S. dollar terms. However, the U.S. dollar appreciated versus most European
currencies and the Japanese yen during the period, which negated much of this
positive performance for U.S. investors.
The Fund posted a total return of 1.78% for the six-month period ended 4-30-96,
compared to a gain of 3.55% in the Lipper General World Income Index over the
same period(3).
As of 4-30-96
ANNUALIZED 30-DAY YIELD(1)
7.20%
AVERAGE CREDIT QUALITY
AA
AVERAGE EFFECTIVE MATURITY(2)
6.8 years
Total Return(3)
for the six-months ended 4-30-96
THE STRONG INTERNATIONAL
BOND FUND
1.78%
SALOMON BROTHERS NON U.S.-
WORLD GOVERNMENT BOND INDEX
(CURRENCY UNHEDGED)
-0.16%
THE FUND OUTPERFORMED ITS BENCHMARK
One way we seek to add value in managing the Fund is to compare it to a
relevant unmanaged benchmark index - in this case the Salomon Brothers Non-U.S.
World Government Bond Index (Currency Unhedged) - and to make strategic
adjustments in the Fund that we believe will give us the edge. Given our
economic outlook, we made the decision to hold a slightly longer duration in
the Fund than that of the index, which made the Fund more sensitive to
interest-rate changes. Additionally, we allocated a higher percentage of
duration-weighted assets to Europe versus Japan, and increased our weighting in
below-investment grade markets. Each of these factors contributed to the Fund
outperforming the benchmark over this period.
Assets by Credit-Quality Rating
based on net assets as of 4-30-96
AAA 51.0%
AA 9.3%
A 3.7%
BBB 5.9%
BB 8.3%
Short-Term Investments 21.8%
Please see the Schedule of Investments in Securities for a complete
listing of the Fund's portfolio.
WORLDWIDE INTEREST RATES DIVERGE
We entered 1996 with a moderately bullish stance on interest rates and a
longer-than-index duration in the Fund. However, interest rates reversed course
in the U.S. and Japan earlier this year, and the yield on 10-year bonds
increased by more than one-half percentage point in both countries over the
six-month period.
European bond markets were mixed over the period, and interest rates fell
substantially - particularly in Italy where the yield on the 10-year bond fell
by 1.75 percentage points. Consequently, we reduced the Fund's overweighting
in Europe and shortened its duration to be in line with the index. We also
increased the Fund's exposure to below-investment grade markets - to
approximately 15% by the end of April - and in mid-March we added Australian and
Japanese bonds to bring the overall rate exposure to a neutral level.
MODERATE U.S. GROWTH SHOULD SUPPORT EMERGING MARKETS
We believe that international bond markets currently provide reasonable value,
and that the U.S. dollar should remain in the trading range seen over the last
few months, with an increased chance that it will rise versus the Japanese yen.
We expect that moderate U.S. economic growth, and inflation in the range
of 2% to 3%, should support high-yielding markets and below-investment grade
securities.
Currently, the Fund's duration level and country allocations are neutral
compared to the index - except for the exposure to below-investment grade
markets. We expect to maintain a
<TABLE>
<CAPTION>
Top Five Holdings by Country(4)
as a percentage of net assets on 4-30-96
<S> <C>
Japan 16.4%
Germany 13.4%
Thailand 12.1%
Italy 11.8%
Mexico 8.1%
</TABLE>
Please see the Schedule of Investments in Securities for a complete
listing of the Fund's portfolio.
4
<PAGE> 7
slightly long U.S. dollar exposure versus the yen. We will monitor the
outlook on inflation which may be threatened if oil and other commodities
sustain their recent price increases. If we expect inflation to head higher and
the Federal Reserve Board appears likely to raise interest rates, we will be
prepared to take a more defensive posture in the Fund.
Please be aware that investments in overseas markets often pose more risk than
U.S. investments - a risk which is intensified in emerging markets - and the
Fund's share price is expected to be more volatile than that of a U.S.-only
fund. Sometimes this volatility works for U.S. investors, as it did during
most of 1995. It would be unwise, though, to expect such a return on more than
an occasional basis.
A falling U.S. dollar, coupled with falling interest rates, resulted in
exceptional returns from foreign bonds over the past decade, but the dollar's
renewed strength this year presented a challenge to international bond fund
managers. Therefore, while the Fund is generally unhedged against currency
movements, we have decided to hedge a portion of the Fund's currency risk in
order to benefit from the dollar's strength. We expect to maintain this
position for the foreseeable future.
The Fund's returns will fluctuate with changes in bond market conditions,
currency values, interest rates, foreign government regulations, and economic
and political conditions in countries in which the Fund invests. Risks are
intensified in emerging markets. For long term investors, however, we believe
these risks may be outweighed by the benefits of global investing - namely,
higher return potential and lower overall portfolio risk through
diversification, from a U.S. - only portfolio.
We appreciate your investment in the Strong International Bond Fund, and we
look forward to earning your continued confidence.
[Photo of Shirish T. Malekar]
Sincerely,
[Signature]
Shirish T. Malekar
Portfolio Manager
================================================================================
Growth of an assumed $10,000 Investment
from 3-31-94 to 4-30-96
The Strong International Bond Fund
3-94 10,000
6-94 10,560.00 Average Annual
9-94 10,810.05
12-94 10,865.69 Total Returns (3)
3-95 12,294.99
6-95 12,878.86 as of 4-30-96
9-95 12,610.87
12-95 12,936.69 1-YEAR
3-96 12,856.56
4-96 12,971.05 3.08%
Salomon Brothers Non U.S.-World Government 2-YEAR
Bond Index (Currency Hedged)
12.66%
3-94 10,000
6-94 10,169.41 SINCE INCEPTION
9-94 10,337.42 ON 3-31-94
12-94 10,396.18
3-95 11,896.72 13.30%
6-95 12,478.29
9-95 12,175.77
12-95 12,428.20
3-96 12,219.25
4-96 12,194.81
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with a similar investment in the
Salomon Brothers Non-U.S. World Government Bond Index (Currency Unhedged), an
unmanaged, market-capitalization weighted index of liquid, non-U.S.
fixed-income government securities. 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. Source for the index data is
Micropal.
================================================================================
(1) As of April 30, 1996, the advisor was temporarily waiving fees of .70%
and absorbing expenses of 1.20%. Without these waivers, the Fund's yield
would have been 5.30% and the total return would have been lower.
(2) The Fund's average maturity includes the effects of futures and options
contracts.
(3) 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. The Lipper General World
Income Index is an equally-weighted performance index, adjusted for
capital gains distributions and income dividends, of the 30 largest
qualifying funds in this Lipper category. Source for the Lipper index data
is Lipper Analytical Services, Inc.
(4) The Fund's asset allocation reflects options and futures positions held
by the Fund.
5
<PAGE> 8
The Strong INTERNATIONAL STOCK Fund
===============================================================================
By investing primarily in the stocks of companies based outside the United
States, the Strong International Stock Fund pursues capital growth. The
Fund provides convenient access to growth opportunities worldwide, and may
increase return potential compared to a U.S.-only portfolio.
[PICTURE OF ROAD]
INTERNATIONAL MARKETS BOUNCE BACK
The slow, steady recovery in international markets seen last year continued
into 1996 and, in some cases, stepped up a gear as investors began to realize
the relative undervaluation of many foreign stock markets compared to Wall
Street.
This reversal in investor sentiment contributed to the Fund's total return
of 17.94% for the six-month period ended 4-30-96. Also contributing to
our performance was our accuracy in picking the more attractive markets - and
the more attractive stocks in those markets. The Fund outperformed the MSCI
EAFE(TM) Index's gain of 13.21% over the same six-month period(1).
MIXED MARKETS IN EUROPE AND ASIA
Despite the generally more upbeat tone in the international markets, many of
the gains to be had were concentrated in particular stocks in particular
markets. The European markets as a whole provided solid, though unexciting
performance, as some strength returned to cyclical stocks. But otherwise,
Europe provided a relatively uninspiring macroeconomic picture.
The best-performing market in Europe was France, which had been one of
Europe's real laggards recently. France's market gained 14.77%, for the six
months ended 4-30-96. Meanwhile, Europe's best performer last year - the
U.K. - posted a 5.40% gain as investors viewed the prospect of a Labour
government next year with slight trepidation.
In Asia, we saw a similarly mixed picture, with Taiwan leading the way with a
gain of 32.40% over the same period. Hong Kong took off early in the year, but
slowed later in spring as investors expressed concerns regarding China's plans
for Hong Kong after June, 1997. Despite this uneasiness, Hong Kong gained
15.97% over the six months.
FAVORED MARKETS PERFORMED WELL
Some of our favored markets posted healthy returns over this period. Indonesia
posted a total return of 28.10%, while Malaysia gained 27.96%, and the
Australian market was up 16.25% for the six-month period. At the other end of
the scale, South Korea - down 3.37%, and Turkey - down 1.73%, posted losses for
the period. All returns are in U.S. dollar terms(2).
Japan, the Fund's largest holding, took a breather in the first quarter, after
rising nearly 50% in yen terms since its market hit a low in July, 1995.
The Fund's exposure to Japan has paid off, and we believe it will continue to
do so as the Japanese economy shows signs of life, the yen continues to
weaken - a plus for Japan's ability to export products - and the country's
financial system's problems are gradually sorted out.
Elsewhere, it is worth noting that emerging markets as diverse as Poland and
India came back to life, and the Fund enjoyed substantial gains from
investments in those countries. It is important to keep in mind that, although
Top Five Holdings by Country
based on net assets as of 4-30-96
<TABLE>
<S> <C>
Japan 19.9%
Australia 6.3%
United Kingdom 4.5%
New Zealand 4.4%
Singapore 4.3%
</TABLE>
Please see the Schedule of Investments in Securities for a complete
listing of the Fund's portfolio.
6
<PAGE> 9
Five Largest Stock Holdings
based on net assets as of 4-30-96
<TABLE>
<S> <C>
Nomura Securities Company, Ltd. 1.5%
CDL Hotels International, Ltd. 1.0%
SGS Holdings SA 0.9%
Guinness Peat Group PLC 0.9%
Mexico Fund 0.8%
</TABLE>
Please see the Schedule of Investments in Securities for a complete
listing of the Fund's portfolio.
emerging markets are once again in favor with many investors, the story is a
selective one. We will continue to sift through the macroeconomic data on each
market and look for opportunities to invest in individual stocks with the
potential for superior returns.
A FAVORABLE OUTLOOK
We continue to feel confident that 1996 will be a good year for international
markets, and that over the next few years international funds will outperform
U.S.-only funds. We believe particular sectors - including smaller companies,
Asia, and the emerging markets - will continue to outperform, and that a
carefully-researched, highly-targeted, stock-selective approach will reap
substantial rewards for investors.
Shareholders should keep in mind, however, that the Fund is likely to be more
volatile than a U.S.-only fund, owing to changes in stock market conditions,
currency values, interest rates, local regulations and economic and
political conditions. Risks are intensified in emerging markets. But given the
value currently available in international markets, we believe foreign equities
offer long-term investors an attractive opportunity.
We thank you for your support and look forward to earning your continued
confidence.
[Photo of Anthony L.T. Cragg]
Sincerely,
[Signature of Anthony L.T. Cragg]
Anthony L.T. Cragg
Portfolio Manager
================================================================================
Growth of an assumed $10,000 Investment
from 3-4-92 to 4-30-96
The Strong International Stock Fund
2-92 10,000
12-92 9,819.25 Average Annual
12-93 14,507.92 Total Returns(1)
12-94 14,281.97
12-95 15,399.35 as of 4-30-96
4-96 17,451.50
1-YEAR
S&P 500 Index
2-92 10,000 23.20%
12-92 10,906.89
12-93 12,006.24 2-YEAR
12-94 12,164.84
12-95 16,736.13 9.24%
4-96 17,894.38
SINCE INCEPTION
MSCI EAFE (TM) ON 3-4-92
2-92 10,000
12-92 9,484.02 14.33%
12-93 12,572.08
12-94 13,549.95
12-95 15,068.87
4-96 15,955.05
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 Standard & Poor's 500 Stock Index ("S&P 500") and the Morgan Stanley
Capital International Europe, Australasia, and Far East Index ("MSCI EAFE")
(TM). Results include the reinvestment of all dividends and capital gains
distributions. The S&P 500 is an unmanaged index generally representative of
the U.S. stock market. The MSCI EAFE(TM) is an unmanaged, market-capitalization
weighted index generally representative of major overseas stock markets. MSCI
EAFE(TM) data are dollar adjusted. 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. Source for the index data is
Micropal.
================================================================================
(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. Source for the index data is
Micropal.
(2) Source for performance data is Morgan Stanley Capital International.
7
<PAGE> 10
The Strong ASIA PACIFIC Fund
===============================================================================
The Strong Asia Pacific Fund seeks capital growth by investing primarily in the
equity securities of issuers located in Asia or the Pacific Basin.
ASIAN MARKETS PROVIDED STRONG RETURNS
International markets continued the recovery they began last year, and in some
cases picked up speed, as investors reallocated assets to international
markets. The shift in investor sentiment back to international stocks was due
in part to a realization of the undervaluation of many foreign stock markets
compared to Wall Street's maturing market.
[PICTURE]
While the tone in international markets was generally upbeat, we saw a mixed
picture in Asia. However, as we focused on the more attractive Asian
markets - and the more attractive stocks in those markets - the Fund gained
16.47% for the six months ended 4-30-96, as measured by total return. Asian
markets, as measured by the Morgan Stanley AC (Combined) Far East Free ex-Japan
Index, posted a return of 17.10 % for the same period(1).
GAINS WERE CONCENTRATED
Many of the gains in the Fund have been selective, that is, concentrated in
particular stocks in particular markets. Taiwan led the way with a total return
of 32.40% for the six months ended 4-30-96. Hong Kong also took off early this
year, but later slowed as investor concerns mounted over China's
plans for Hong Kong after June, 1997. Despite these concerns, the Hong Kong
market gained 15.97% over the period.
Some of our favored markets also put in healthy performances over the last six
months; the Malaysian market was up 27.96%, Indonesia gained 28.10%, the
Philippines posted a total return of 16.90%. All returns are in U.S. dollar
terms(2).
The Japanese market cooled during the first quarter - after rising nearly 50%,
in yen terms, from its low in July 1995. But our increased exposure to Japan has
paid off for the Fund, and we believe it will continue to do so. The Japanese
economy continued to show signs of life during this period, and the yen
continued to weaken - a positive for Japan's ability to export.
Elsewhere, emerging markets came back to life, and the Fund benefited from
substantial increases in markets as diverse as India and Australia. It is
important to keep in mind, however, that although the emerging markets as a
whole have regained investor favor, the story is a selective one.
Top Five Holdings by Country
based on net assets as of 4-30-96
<TABLE>
<S> <C>
Japan 22.3%
Australia 10.6%
New Zealand 9.4%
Indonesia 8.7%
Singapore 7.5%
</TABLE>
Please see the Schedule of Investments in Securities for a complete
listing of the Fund's portfolio.
8
<PAGE> 11
Five Largest Stock Holdings
based on net assets as of 4-30-96
<TABLE>
<S> <C>
Nomura Securities Co., Ltd. 1.5%
APAC Centertex Corporation (Fgn Reg) 1.2%
Guinness Peat Group PLC 1.2%
Tambang Timah PT (Persero) 1.2%
Kawasan Industries Jababeka PT 1.1%
</TABLE>
Please see the Schedule of Investments in Securities for a complete
listing of the Fund's portfolio.
ATTRACTIVE LONG-TERM OPPORTUNITIES
We remain confident that 1996 will be a good year for international markets,
and believe that a research-intensive, highly-targeted, stock-selective
approach will reap substantial rewards for the Fund. We expect to see
international markets outperform the U.S. market over the next few years.
Shareholders should keep in mind, however, that the Fund is likely to be more
volatile than a U.S.-only fund, owing to changes in stock market conditions,
currency values, interest rates, local regulations and economic, political
conditions in international markets and the Fund's concentration in one
geographical area. Risks are intensified in emerging markets. But given the
value currently available in international markets, we believe foreign equities
offer long-term investors an attractive opportunity.
Thank you for your investment, and we look forward to earning your continued
confidence.
Sincerely,
[Sig]
Anthony L.T. Cragg
Portfolio Manager
[Photo of Anthony L.T. Cragg]
================================================================================
Growth of an assumed $10,000 Investment
from 12-31-93 to 4-30-96
Average Annual
The Strong Asia Pacific Fund Total Returns(1)
12-93 10,000
12-94 9,472.56 as of 4-30-96
12-95 10,034.73
4-96 11,322.93 1-year
MSCI EAFE(TM) 22.15%
12-93 10,000
12-94 10,777.82 2-year
12-95 11,985.98
4-96 12,690.86 7.33%
MSCI CFE(TM) since inception
12-93 10,000 on 12-31-93
12-94 8,251.57
12-95 8,981.28 5.47%
4-96 10,125.01
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at the Fund's inception, with similar
investments in the Morgan Stanley Capital International Europe, Australasia,
and Far East Index ("MSCI EAFE")(TM), and the Morgan Stanley Capital
International Combined Far East Free ex-Japan Index ("MSCI EAFE")(TM). Results
include the reinvestment of all dividends and capital gains distributions. The
MSCI EAFE(TM) is an unmanaged, market-capitalization weighted index generally
representative of major overseas stock markets. Source for the MSCI EAFE(TM)
Index is Micropal. The MSCI CFE(TM) is an unmanaged, market-capitalization
weighted index generally representative of developed and emerging markets in
the Asia/Pacific region, excluding Japan. Source for the MSCI CFE(TM) is Morgan
Stanley. Indices are dollar adjusted. 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 Fund shares.
================================================================================
(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) Source for performance data is Morgan Stanley Capital International.
9
<PAGE> 12
SCHEDULES OF INVESTMENTS IN SECURITIES April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
STRONG SHORT-TERM GLOBAL BOND FUND
<TABLE>
<CAPTION>
Shares or Value
Principal (Note 2)
Amount (In thousands)
- --------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS 9.0%
INDIA 2.8%
Reliance Industries, Ltd. Notes, 8.125%, Due 9/27/05
(Acquired 9/22/95; Cost $998) (d) 1,000 USD $ 958
MEXICO 1.5%
Banco Nacional de Comercio Exterior Floating Rate
Notes, 10.5546%, Due 6/23/97 (Acquired 6/15/95;
Cost $500) (d) 500 USD 519
UNITED STATES 4.7%
Bank of Boston Corporation Subordinated Floating
Rate Notes, 5.4375%, Due 2/28/01 $100 99
Harrahs Operating, Inc. Senior Subordinated Notes,
10.875%, Due 4/15/02 500 539
MGM Grand Hotel Finance Corporation First
Mortgage Notes, 11.75%, Due 5/01/99 500 532
Viacom International, Inc. Reset Notes, 8.75%,
Due 5/15/01 (Rate Reset Effective 5/15/98) 450 459
------
1,629
------
TOTAL CORPORATE BONDS (COST $3,126) 3,106
GOVERNMENT AND AGENCY ISSUES 36.7%
ARGENTINA 2.1%
Republic of Argentina BOCON Previsional 2
Floating Rate Notes, 5.4219%, Due 4/01/01 629 USD 595
Republic of Argentina Floating Rate Notes,
8.4766%, Due 4/04/98 160 USD 142
------
737
CANADA 2.8%
Government of Canada Debentures, 10.25%,
Due 12/01/98 1,200 CAD 963
DENMARK 1.7%
Kingdom of Denmark Notes, 9.00%, Due 11/15/00 3,000 DKK 568
FRANCE 3.6%
Government of France Debentures:
7.00%, Due 10/12/00 2,900 FRF 597
8.50%, Due 11/25/02 3,000 FRF 661
------
1,258
GERMANY 1.7%
Republic of Germany Debentures, Series 90,
8.875%, Due 12/20/00 800 DEM 600
IRELAND 2.9%
Government of Ireland Debentures, 9.25%,
Due 7/11/03 570 IEP 1,002
ITALY 2.1%
Government of Italy Debentures, 12.00%,
Due 1/01/02 1,000,000 ITL 713
MEXICO 1.5%
Mexico-United Mexican States Floating Rate
Notes, 10.8125%, Due 7/21/97 (Acquired
7/12/95; Cost $500) (d) 500 USD 518
NEW ZEALAND 3.4%
Government of New Zealand Notes:
6.50%, Due 2/15/00 800 NZD 507
8.00%, Due 7/15/98 1,000 NZD 673
-----
1,180
NORWAY 3.8%
Kingdom of Norway Debentures, 9.50%,
Due 10/31/02 7,250 NOK 1,297
UNITED KINGDOM 1.1%
Government of United Kingdom Notes, 7.25%,
Due 3/30/98 250 GBP 380
UNITED STATES 10.0%
FHLMC Guaranteed Multiclass Variable Rate
Mortgage Participation Certificates, Series 1324,
Class 1324-B, 7.00%, Due 4/15/18 $2,057 2,061
FHLMC Variable Rate Participation Certificates,
7.491%, Due 7/01/24 $427 $439
FNMA Guaranteed Real Estate Mortgage
Investment Conduit Pass-Thru Certificates,
10.50%, Due 8/01/20 685 766
FNMA Guaranteed Real Estate Mortgage
Investment Conduit Principal Only
Pass-Thru Certificates:
Series 1989-11, Class 11-C, Due 1/25/14 182 181
Series 1989-73, Class A, Due 8/25/14 22 20
------
3,467
------
TOTAL GOVERNMENT AND AGENCY ISSUES
(COST $12,485) 12,683
NON-AGENCY MORTGAGE AND
ASSET-BACKED SECURITIES 34.0%
Citicorp Mortgage Securities, Inc. Real Estate
Mortgage Investment Conduit
Pass-Thru Certificates:
Series 1988-3, Class A-2, 9.00%, Due 4/01/18 336 346
Series 1990-17, Class M, 9.50%, Due 11/25/20 449 458
First Boston Mortgage Securities Corporation
Variable Rate Mortgage Pass-Thru Certificates,
Series 1994-MHC1, Class C, 6.5023%, Due 4/25/11 500 500
GE Capital Mortgage Services, Inc., Series 1994-11,
Class A-3, 6.50%, Due 3/25/24 363 361
GS Trust 3 Floating Rate Collateralized Mortgage
Obligation, Series C, Class C-2, 6.40%, Due 7/07/15 43 43
Green Tree Financial Corporation Home
Improvement Loan Certificates, Series 1995-E,
Class A, 6.80%, Due 8/15/20 819 814
Green Tree Securitized Net Interest Margin
Trust Certificates:
Series 1994-A, Class A, 6.90%, Due 2/15/04 374 373
Series 1994-B, Class A, 7.85%, Due 7/15/04 566 571
Merrill Lynch Home Equity Acceptance, Inc.
Subordinated Variable Rate Mortgage-Backed
Certificates, Series 1994-A, Class A-1, 6.4375%,
Due 8/17/23 73 72
Merrill Lynch Mortgage Investors, Inc.
Manufactured Housing Contract Pass-Thru
Certificates, Series 1992-E, Class B, 5.85%,
Due 8/15/12 114 114
Merrill Lynch Mortgage Investors, Inc. Senior
Subordinated Variable Rate Pass-Thru Certificates:
Series 1994-F, Class M, 6.4375%, Due 4/15/19 500 485
Series 1994-H, Class M, 6.4375%, Due 6/15/19 1,120 1,086
Mortgage Obligation Structured Trust Pass-Thru
Certificates, Series 1993-1, Class A-1, 6.35%,
Due 10/25/18 690 686
RTC Mortgage Pass-Thru Securities, Inc.
Commercial Certificates, Series 1992-CHF,
Class B, 7.15%, Due 12/25/20 1,037 1,042
RTC Variable Rate Mortgage Pass-Thru Securities,
Inc. Manufactured Housing Certificates,
Series 1992-MH1, Class B-2, 5.9625%, Due 8/15/19
(Acquired 4/21/95; Cost $923) (d) 937 926
RTC Variable Rate Mortgage Pass-Thru
Securities, Inc.:
Series 1991-16, Class A-1, 7.8157%, Due 1/25/25 947 964
Series 1992-6, Class A-3, 7.7890%, Due 1/25/26 984 1,000
Series 1992-16, Class A-4, 7.7742%, Due 8/25/22 41 41
Series 1995-1, Class B-5, 6.6416%, Due 10/25/28 460 452
</TABLE>
See notes to financial statements.
10
<PAGE> 13
- --------------------------------------------------------------------------------
STRONG SHORT-TERM GLOBAL BOND FUND (Continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL (NOTE 2)
AMOUNT (IN THOUSANDS)
- --------------------------------------------------------------------------------
<S> <C> <C>
Ryland Mortgage Securities Corporation
Collateralized Mortgage Bonds, Series 1991-B1,
Class 1, 7.5541%, Due 3/25/20 $1,470 $ 1,494
-------
TOTAL NON-AGENCY MORTGAGE AND
ASSET-BACKED SECURITIES (COST $11,732) 11,828
CASH EQUIVALENTS (a) 22.4%
COMMERCIAL PAPER 17.3%
DISCOUNTED 17.2%
BRAZIL 1.4%
Petroleo Brasileiro S.A. Eurodollar, Due 12/09/96 500 USD 501
MEXICO 4.9%
Banco Nacional Comerciio de Exterior,
Due 6/24/96 500 USD 501
Nacional Financiera S.N.C. Floating Rate Notes,
Due 5/09/96 1,200 USD 1,204
-------
1,705
THAILAND 10.9%
Bangchak Petroleum Bills of Exchange:
Due 5/07/96 30,000 THB 1,188
Due 7/26/96 40,000 THB 1,552
Industrial Finance Corporation of Thailand
Medium Term Notes, Due 5/14/96 25,000 THB 991
-------
3,731
-------
5,937
INTEREST BEARING, DUE UPON DEMAND 0.1%
United States Cayman Eurodollar Call
Deposit, 4.25% $50 50
-------
Total Commercial Paper 5,987
GOVERNMENT AND AGENCY ISSUES 0.8%
ARGENTINA 0.7%
Republic of Argentina Debentures, 7.6758%,
Due 6/05/96 250 USD 250
UNITED STATES 0.1%
United States Treasury Bills, Due 8/01/96 (c) $35 35
-------
285
TIME DEPOSITS 4.3%
POLAND 1.4%
Citibank Time Deposit (with Polish Lloty
indexation and interest based on the Polish
denominated deposit), 17.00%, Due 6/14/96 500 USD 496
UNITED STATES 2.9%
Royal Bank of Canada Time Deposit, 5.3125%,
Due 5/01/96 $1,000 1,000
-------
1,496
-------
TOTAL CASH EQUIVALENTS (COST $7,759) 7,768
-------
TOTAL INVESTMENTS IN SECURITIES
(COST $35,102) 102.1% 35,385
Other Assets and Liabilities, Net (2.1%) (743)
-------
NET ASSETS 100.0% $34,642
=======
</TABLE>
<TABLE>
<CAPTION>
FUTURES
UNDERLYING UNREALIZED
AMOUNT APPRECIATION
EXPIRATION AT VALUE (DEPRECIATION)
DATE (IN THOUSANDS) (IN THOUSANDS)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Purchased:
14 Five-Year U.S. Treasury Notes 6/96 $1,483 ($11)
6 Ten-Year German Bonds 6/96 949 (2)
Sold:
2 Ten-Year U.S. Treasury Notes 6/96 (215) 4
</TABLE>
<TABLE>
<CAPTION>
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
UNREALIZED
VALUE APPRECIATION
SETTLEMENT IN USD (DEPRECIATION)
DATE (IN THOUSANDS) (IN THOUSANDS)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Purchased:
1,600,000 AUD 6/11/96 $1,253 $ 7
450,000 CAD 7/16/96 331 --
532,000 DEM 8/13/96 350 (6)
Sold:
450,000 CAD 7/16/96 331 (1)
1,360,000 CAD 7/26/96 1,001 (1)
5,210,000 DEM 8/13/96 3,429 122
3,300,000 DKK 7/17/96 562 33
6,500,000 FRF 7/16/96 1,262 52
850,000 GBP 7/09/96 1,278 19
1,800,000 NZD 5/06/96 1,236 (5)
30,000,000 THB 5/07/96 1,188 (12)
26,402,397 THB 5/14/96 1,045 (5)
40,000,000 THB 7/26/96 1,575 (2)
</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE OF
INDUSTRY DIVERSIFICATION NET ASSETS
- --------------------------------------------------------------------------------
<S> <C>
Foreign Government 35.0%
Non-Agency Single-Family 14.7
Oil - International Integrated 9.4
FHLMC 7.2
Non-Agency Asset-Backed 6.0
Non-Agency Manufactured Housing 4.4
U.S. Government 3.8
Bank - Super Regional 3.2
Leisure Service 3.1
Bank - Money Center 2.9
Chemical 2.8
FNMA 2.8
Finance - Miscellaneous 2.8
Non-Agency Multi-Family 2.7
Media - Radio/TV 1.3
Other Assets and Liabilities, Net (2.1)
------
Total 100.0%
======
</TABLE>
<TABLE>
<CAPTION>
STRONG INTERNATIONAL BOND FUND
Shares or Value
Principal (Note 2)
Amount (In thousands)
- --------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS 6.3%
CANADA 0.7%
Mobil Oil of Canada Corporation Senior
Unsubordinated Notes, 9.00%, Due 5/02/97 250 CAD $ 189
INDIA 3.5%
Reliance Industries, Ltd. Notes, 8.125%, Due 9/27/05
(Acquired 9/22/95; Cost $998) (d) 1,000 USD 958
UNITED STATES 2.1%
Bank of Boston Corporation Subordinated Floating
Rate Notes, 5.4375%, Due 2/28/01 $ 50 50
MGM Grand Hotel Finance Corporation First
Mortgage Notes, 11.75%, Due 5/01/99 500 532
------
582
------
TOTAL CORPORATE BONDS (COST $1,762) 1,729
</TABLE>
See notes to financial statements.
11
<PAGE> 14
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
STRONG INTERNATIONAL BOND FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL (NOTE 2)
AMOUNT (IN THOUSANDS)
- --------------------------------------------------------------------------------
<S> <C> <C>
GOVERNMENT AND AGENCY ISSUES 42.5%
ARGENTINA 2.6%
Republic of Argentina BOCON Previsional 2
Floating Rate Notes, 5.4219%, Due 4/01/01 629 USD $ 595
Republic of Argentina Debentures, 8.4766%,
Due 4/04/98 134 USD 118
------
713
CANADA 3.8%
Government of Canada Debentures, 10.25%,
Due 12/01/98 1,300 CAD 1,043
DENMARK 4.3%
Kingdom of Denmark Notes:
8.00%, Due 3/15/06 4,500 DKK 806
9.00%, Due 11/15/00 2,000 DKK 379
------
1,185
FRANCE 4.3%
Government of France Debentures, 8.50%,
Due 11/25/02 5,400 FRF 1,189
GERMANY 9.8%
Republic of Germany Debentures, Series 94,
7.50%, Due 11/11/04 3,800 DEM 2,684
IRELAND 2.4%
Government of Ireland Debentures, 9.25%,
Due 7/11/03 380 IEP 668
MEXICO 1.9%
Mexico-United Mexican States Floating Rate
Notes, 10.8125%, Due 7/21/97 (Acquired
7/12/95; Cost $500) (d) 500 USD 518
NEW ZEALAND 5.9%
Government of New Zealand Notes:
6.50%, Due 2/15/00 1,700 NZD 1,078
8.00%, Due 7/15/98 800 NZD 538
------
1,616
NORWAY 1.8%
Kingdom of Norway Debentures, 9.50%,
Due 10/31/02 2,750 NOK 492
UNITED STATES 5.7%
FHLMC Variable Rate Participation Certificates,
7.491%, Due 7/01/24 $ 427 439
FNMA Adjustable Rate Mortgage-Backed
Securities, 7.885%, Due 6/01/24 896 926
FNMA Guaranteed Real Estate Mortgage
Investment Conduit Principal Only
Pass-Thru Certificates:
Series 1989-11, Class 11-C, Due 1/25/14 182 181
Series 1989-73, Class A, Due 8/25/14 14 13
------
1,559
------
TOTAL GOVERNMENT AND AGENCY ISSUES
(Cost $11,506) 11,667
NON-AGENCY MORTGAGE AND
ASSET-BACKED SECURITIES 29.5%
Citicorp Mortgage Securities, Inc. Real Estate
Mortgage Investment Conduit Pass-Thru
Certificates, Series 1990-17, Class M, 9.50%,
Due 11/25/20 449 458
First Boston Mortgage Securities Corporation
Mortgage Pass-Thru Certificates, Series 1992-4,
Class A-5, Interest Only, 0.625%, Due 10/25/22 34,666 244
GE Capital Mortgage Services, Inc.:
Series 1993-13, Class B-3, 6.00%, Due 10/25/08
(Acquired 9/26/95; Cost $497) (d) 601 510
Series 1994-11, Class A-3, 6.50%, Due 3/25/24 363 361
Green Tree Securitized Net Interest Margin
Trust Certificates:
Series 1994-A, Class A, 6.90%, Due 2/15/04 $ 138 $ 138
Series 1994-B, Class A, 7.85%, Due 7/15/04 114 115
Series 1995-A, Class A, 7.25%, Due 7/15/05 244 243
Guaranteed Mortgage Corporation III, Series M,
Class M-1, 8.50%, Due 4/01/03 648 648
Merrill Lynch Home Equity Acceptance, Inc.
Subordinated Variable Rate Mortgage-Backed
Certificates, Series 1994-A, Class A-1, 6.4375%,
Due 8/17/23 110 108
Merrill Lynch Mortgage Investors, Inc. Senior
Subordinated Variable Rate Pass-Thru Certificates,
Series 1994-H, Class M, 6.4375%, Due 6/15/19 75 73
RTC Mortgage Pass-Thru Securities, Inc.
Commercial Certificates, Series 1992-CHF,
Class B, 7.15%, Due 12/25/20 864 868
RTC Variable Rate Mortgage Pass-Thru
Securities, Inc.:
Series 1991-16, Class A-1, 7.8157%, Due 1/25/25 947 964
Series 1995-1, Class B-5, 6.6416%, Due 10/25/28 951 936
Ryland Mortgage Securities Corporation
Collateralized Mortgage Bonds:
Series 1991, Class B1, 7.5541%, Due 3/25/20 1,169 1,189
Series 1992-2, Class B, 8.00%, Due 1/25/19 312 312
Suncoast Collateralized Mortgage Obligation
Trust III, Series 3, Class C, 8.75%, Due 2/27/18 895 897
------
TOTAL NON-AGENCY MORTGAGE AND
ASSET-BACKED SECURITIES (COST $7,934) 8,064
FOREIGN DENOMINATED CURRENCY OPTIONS 0.3%
July German Deutschemark Put Options
(Strike price is $1.50. Expiration date
is 7/18/96.) (COST $47) 3,000,000 DEM 80
CASH EQUIVALENTS (a) 23.9%
COMMERCIAL PAPER 20.3%
DISCOUNTED 20.1%
BRAZIL 1.8%
Petroleo Brasileiro S.A. Eurodollar,
Due 12/09/96 500 USD 501
MEXICO 6.2%
Banco Nacional Comerciio de Exterior,
Due 6/24/96 500 USD 501
Nacional Financiera S.N.C. Floating Rate Notes,
Due 5/09/96 1,200 USD 1,204
------
1,705
THAILAND 12.1%
Bangchak Petroleum Bills of Exchange:
Due 5/07/96 30,000 THB 1,188
Due 7/26/96 30,000 THB 1,164
Industrial Finance Corporation of Thailand
Medium Term Notes, Due 5/14/96 25,000 THB 991
------
3,343
INTEREST BEARING, DUE UPON DEMAND 0.2%
United States Cayman Eurodollar Call
Deposit, 4.25% $68 68
------
Total Commercial Paper 5,617
GOVERNMENT AND AGENCY ISSUES 2.3%
ARGENTINA 1.1%
Republic of Argentina Debentures, 7.6758%,
Due 6/05/96 300 USD 300
UNITED STATES 1.2%
United States Treasury Bills, Due 8/01/96 (c) $345 341
------
641
</TABLE>
See notes to financial statements.
12
<PAGE> 15
- --------------------------------------------------------------------------------
STRONG INTERNATIONAL BOND FUND (continued)
<TABLE>
<CAPTION>
Shares or Value
Principal (Note 2)
Amount (In thousands)
- --------------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSITS 1.3%
LEBANON 0.9%
Citibank Time Deposit (with Lebanese Pound
indexation and interest based on the Lebanese
denominated deposit), 15.20%, Due 11/01/96 250 USD $ 257
UNITED STATES 0.4%
Royal Bank of Canada Time Deposit, 5.3125%,
Due 5/01/96 $100 100
-------
357
-------
TOTAL CASH EQUIVALENTS (COST $6,596) 6,615
-------
TOTAL INVESTMENTS IN SECURITIES
(COST $27,845) 102.5% 28,155
Other Assets and Liabilities, Net (2.5%) (695)
-------
NET ASSETS 100.0% $27,460
=======
</TABLE>
<TABLE>
<CAPTION>
FUTURES
Underlying Unrealized
Amount Appreciation
Expiration at Value (Depreciation)
Date (In Thousands) (In Thousands)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Purchased:
15 Ten-Year Australian
Government Bonds 6/96 $1,434 $ 1
11 Ten-Year French
Government Bonds 6/96 1,313 20
14 Ten-Year German
Government Bonds 6/96 2,214 (4)
22 Ten-Year Italian
Government Bonds 6/96 3,215 120
4 Ten-Year Japanese
Government Bonds 6/96 4,505 (30)
10 Ten-Year United Kingdom
Government Bonds 6/96 796 14
Sold:
10 Ten-Year U. S.
Treasury Notes 6/96 1,075 38
</TABLE>
<TABLE>
<CAPTION>
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Unrealized
Value Appreciation
Settlement in USD (Depreciation)
Date (In Thousands) (In Thousands)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Purchased:
2,220,000 AUD 6/11/96 $ 1,739 $ 9
1,700,000 CAD 7/16/96 1,251 19
16,986,258 DEM 5/13/96 11,107 (442)
650,000 DEM 8/13/96 428 (8)
6,900,000 FIM 7/16/96 1,432 (92)
400,000 GBP 5/13/96 601 (10)
4,758,000,000 ITL 5/13/96 3,042 9
953,358,000 JPY 5/13/96 9,125 104
Sold:
1,000,000 CAD 7/16/96 736 (8)
1,473,000 CAD 7/26/96 1,084 (1)
7,229,875 DEM 5/13/96 4,728 169
3,700,000 DKK 7/17/96 630 36
6,900,000 FIM 7/16/96 1,432 160
6,000,000 FRF 8/13/96 1,166 10
69,135,950 JPY 5/13/96 662 (12)
2,500,000 NZD 5/06/96 1,716 (6)
30,000,000 THB 5/07/96 1,188 (12)
26,402,397 THB 5/14/96 1,045 (5)
30,000,000 THB 7/26/96 1,182 (2)
</TABLE>
<TABLE>
<CAPTION>
INDUSTRY DIVERSIFICATION PERCENTAGE OF
NET ASSETS
- --------------------------------------------------------------------------------
<S> <C>
Foreign Government 79.4%
Oil - International Integrated 10.4
Finance - Miscellaneous 3.6
Chemical 3.5
Bank - Super Regional 1.9
Leisure Service 0.7
Non-Agency Manufactured Housing 0.7
Non-Agency Single Family 0.7
Oil - North American Integrated 0.7
Bank - Money Center 0.3
Foreign Denominated Currency Options 0.3
U.S. Government 0.2
Non-Agency Asset-Backed 0.1
Other Assets and Liabilities, Net (2.5)
------
Total 100.0%
======
</TABLE>
- --------------------------------------------------------------------------------
STRONG INTERNATIONAL STOCK FUND
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL (NOTE 2)
AMOUNT (IN THOUSANDS)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 87.6%
ARGENTINA 0.9%
Disco SA Sponsored ADR (b) 23,000 $ 365
Quilmes Industrial SA ADR (b) 60,000 713
YPF Sociedad Anonima ADR 90,000 1,969
-----
3,047
AUSTRALIA 6.0%
AAPC, Ltd. 1,922,519 1,284
Aberfoyle, Ltd. 320,000 935
Boral, Ltd. 519,000 1,354
Coca-Cola Amatil, Ltd. 131,364 1,382
Coles Myer, Ltd. 446,000 1,612
Email, Ltd. 333,000 934
ERG Australia, Ltd. 640,000 764
ERG, Ltd. New (b) 160,000 191
John Fairfax Holdings, Ltd. 750,000 1,779
Lend Lease Corporation, Ltd. 72,000 1,097
Mount Edon Gold Mines, Ltd. (b) 225,000 442
Newcrest Mining, Ltd. 182,000 876
Normandy Mining, Ltd. (b) 1,223,101 2,152
Normandy Mining, Ltd. Warrants,
Expire 4/30/01 (b) 489,240 194
Novus Petroleum, Ltd. 1,231,000 1,760
Resolute Samantha, Ltd. 509,000 1,267
Sydney Aquarium, Ltd. 347,100 791
Western Mining Corporation, Ltd. 107,000 780
-----
19,594
AUSTRIA 0.3%
Wolford AG 4,700 1,022
BOTSWANA 0.3%
Sechaba Investment Trust Company, Ltd. (b) 1,090,000 816
BRAZIL 1.0%
Cia Vale Do Rio Doce Sponsored ADR 50,000 919
Telecommunicacoes Brasileiras SA ADR 9,370 507
Usinas Siderurgicas de Minas Gerais
Sponsored ADR 150,000 1,724
-----
3,150
CANADA 0.1%
Direct Choice T.V., Inc. (Acquired 4/22/96;
Cost $349) (b) (d) 100,000 349
CHILE 0.4%
Five Arrows Chile Investment Trust, Ltd. 490,000 1,426
</TABLE>
See notes to financial statements.
13
<PAGE> 16
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRONG INTERNATIONAL STOCK FUND (continued)
Shares or Value
Principal (Note 2)
Amount (In thousands)
- --------------------------------------------------------------------------------
<S> <C> <C>
CHINA 1.9%
The China Fund, Inc. 116,000 $ 1,580
Ek Chor China Motorcycle Company, Ltd. 80,000 1,180
Inner Mongolia Erdos Cashmere 'B' (b) 2,280,000 1,081
Shandong Huaneng Power Company, Ltd. ADR 95,000 879
Yizheng Chemical Fibre Company, Ltd. 4,853,000 1,317
-------
6,037
COLOMBIA 0.3%
Banco Ganadero SA ADS (representing Class C
Preference Shares) 71,000 1,101
FINLAND 0.3%
Pohjola Insurance Company 'B' 17,000 269
Raision Tehtaat Oy 'V Shares' 24,000 794
-------
1,063
FRANCE 3.0%
Chargeurs 4,877 1,297
Compagnie Fives-Lille 16,500 1,742
Compagnie Generale des Eaux 9,312 1,012
Lagardere Groupe 62,500 1,677
Remy Cointreau 59,000 1,689
Sabeton SA 4,800 752
Skis Rossignol 2,400 829
Zodiac SA 3,156 781
-------
9,779
GERMANY 0.7%
Daimler-Benz AG 1,150 630
Keikert AG (b) 30,600 922
Wella AG 1,250 562
-------
2,114
GHANA 0.5%
Ashanti Goldfields Company, Ltd. (Acquired
10/05/94-2/01/96; Cost $852) (d) 39,000 863
Ashanti Goldfields Company, Ltd. GDR 33,600 743
-------
1,606
GREECE 0.1%
Hellenic Telecommunications Organization
(Acquired 4/01/96; Cost $327) (d) 19,750 332
HONG KONG 2.2%
Amoy Properties, Ltd. 1,032,000 1,160
CDL Hotels International, Ltd. 5,523,620 3,160
Guoco Group, Ltd. 132,000 657
Hong Kong Telecommunications, Ltd.
Sponsored ADR 9,000 171
Peregrine Investments Holdings, Ltd 1,281,000 1,979
-------
7,127
HUNGARY 0.2%
Hungarian Investment Company, Ltd. (b) 10,000 775
INDIA 3.9%
Asian Hotels, Ltd. 110,000 987
IS Himilayan Fund NV (b) 100,000 1,550
The India Gateway Fund, Ltd. (b) 125,000 799
The India Gateway Fund, Ltd. Warrants,
Expire 5/31/97 (b) 25,000 --
India Growth Fund, Inc. 50,000 813
Indian Hotels Company, Ltd. 38,000 852
Indian Hotels Company, Ltd. Registered Shares (b) 30,000 885
Oriental Bank of Commerce 528,000 1,314
Peregrine Indian Smaller Companies Fund (b) 7,100 550
Reliance Industries, Ltd. 154,500 1,165
State Bank of India, Ltd. (b) 93,200 819
Steel Authority of India, Ltd. GDR (Acquired
3/07/96; Cost $1,570) (b) (d) 121,000 1,860
Titan Industries, Ltd. 270,000 938
-------
12,532
INDONESIA 3.0%
Bank Bali PT (Fgn Reg) 418,950 1,079
Bank Tiara Asia PT (Fgn Reg) 560,000 $ 709
Bukaka Teknik Utama PT IDR (b) 862,000 1,480
Dharmala Intiland PT (Fgn Reg) 1,614,000 1,265
Jaya Real Property PT (Fgn Reg) 121,000 421
Komatsu Indonesia PT (Fgn Reg) (b) 836,500 628
Matahari Putra Prima PT (Fgn Reg) 164,000 329
Semen Cibinong PT (Fgn Reg) 509,000 1,508
Tambang Timah PT GDR (b) 129,000 2,226
-------
9,645
ISRAEL 0.4%
Ampal-American Israel Corporation Class A 85,300 501
Gilat Satellite Networks, Ltd. (b) 39,000 907
-------
1,408
ITALY 3.4%
Arnoldo Mondadori Editore Spa 246,000 2,063
Bulgari Spa (b) 64,000 799
Costa Crociere Spa 618,000 1,160
De Rigo Spa ADR (b) 56,400 1,734
Olivetti Spa (b) 1,220,000 781
Pininfarina Spa 46,100 502
STET - Societa' Finanziaria Telefonica P.A. 324,000 1,096
Simint Spa (b) 1,502,000 2,434
Telecom Italia Mobile Spa (b) 220,000 486
-------
11,055
JAPAN 19.5%
Amway Japan, Ltd. Premium Exchangeable
Participating Shares Trust 25,600 570
Benesse Corporation 14,000 1,322
Best Denki Warrants, Expire 5/14/97 (b) 1,400 787
C-Cube Corporation 128,000 1,100
Canon Sales Company, Inc. 53,000 1,481
Canon Sales Company, Inc. Warrants,
Expire 11/11/97 (b) 3,200 485
Charle Company 23,000 340
Chubu Steel Plate Company, Ltd. 324,000 2,206
Citizen Watch Company, Ltd. Warrants,
Expire 10/22/96 (b) 5,550 1,942
Diamond City Company 152,000 1,360
East Japan Railway Company 175 933
Eiden Sakakiya Company, Ltd. Warrants,
Expire 11/30/99 (b) 400 395
FamilyMart 42,400 2,070
HIS Company, Ltd. 17,500 1,028
Heiwa Corporation 60,000 1,436
Hirata Technical Company, Ltd. 55,000 960
Hitachi, Ltd. 180,000 1,940
Ishiguro Homa Corporation 54,000 1,195
Ishikawajima Harima Heavy Industries
Company, Ltd. 435,000 2,157
Japan Industrial Land Development 20,900 740
Komori Corporation 41,000 1,087
Kumagai Gumi Company, Ltd. (b) 287,000 1,229
Marubeni Corporation 344,000 2,057
Mitsubishi Corporation 107,000 1,521
Mitsui Fudosan (b) 151,000 1,987
Mitsui Trust & Banking Company, Ltd. 110,000 1,322
Morgan Stanley Group, Inc. Nikkei 225 Index
Call Warrants (b) 146,800 1,541
Mori Seiki Company, Ltd. 53,000 1,208
New OJI Paper Company, Ltd. Warrants,
Expire 7/30/98 (b) 650 1,141
Nichiha 82,500 1,511
Nippon Shinpan Company 214,000 1,594
Nippon Telegraph & Telephone Corporation 201 1,555
Nomura Securities Company, Ltd. (b) 218,000 4,740
Ohmoto Gumi Company, Ltd. 99,000 2,238
</TABLE>
See notes to financial statements.
14
<PAGE> 17
- --------------------------------------------------------------------------------
STRONG INTERNATIONAL STOCK FUND (Continued)
<TABLE>
<CAPTION>
Shares or Value
Principal (Note 2)
Amount (In thousands)
- ---------------------------------------------------------------------------------
<S> <C> <C>
Olympus Optical Company, Ltd. Warrants,
Expire 12/03/96 4,895 $ 1,407
Renown, Inc. (b) 23,000 96
SXL Corporation Warrants, Expire 2/29/99 (b) 6,300 924
Salomon & Taylor Made Company, Ltd. 60,000 896
Shinseido Company, Ltd. 89,000 976
Shiseido Company, Ltd. 120,000 1,511
TOC Company, Ltd. 201,000 2,320
Takeda Printing Company, Ltd. 61,000 913
Toho Company 9,110 1,581
Trinity Industrial 152,000 1,102
Xebio Company, Ltd. 35,000 1,302
Yodogawa Steel Work Warrants, Expire 12/10/97 (b) 550 949
------
63,155
LEBANON 0.2%
Banque Audi S.A.L. GDR (b) 58,400 759
MALAYSIA 2.1%
ACP Industries BHD 270,000 1,321
Arab-Malaysian Corporation 91,000 369
Batu Kawan BHD 521,500 1,161
IJM Corporation BHD 'A' 430,000 828
Kentucky Fried Chicken BHD 30,000 180
Kuala Lumpur Kepong BHD 115,000 295
Road Builder Holdings BHD 448,000 1,976
TA Enterprise BHD 430,000 742
-----
6,872
MEXICO 1.4%
Mexico Fund 174,100 2,698
Panamerican Beverages, Inc. Class A 41,000 1,799
-----
4,497
MOROCCO 0.2%
Banque Marocaine Du Commerce Exterieur
Sponsored GDR (Acquired 3/29/96;
Cost $508) (b) (d) 40,000 605
NAMIBIA 0.2%
Namibia Breweries (b) 1,054,000 586
NETHERLANDS 1.2%
Ceteco Holding NV 40,412 1,711
Koninklijke Boskalis Westminster NV 104,000 1,537
Philips Electronics NV ADR 20,000 718
-----
3,966
NEW ZEALAND 3.6%
Air New Zealand, Ltd. Class B 473,000 1,656
CDL Hotels New Zealand, Ltd. (b) 806,000 310
Carter Holt Harvey, Ltd. 246,321 583
Fernz Corporation, Ltd. 226,320 699
Fletcher Challenge Energy (b) 372,000 797
Fletcher Challenge, Ltd. Forestry Division 941,031 1,215
Guinness Peat Group PLC 4,440,666 2,744
Guinness Peat Group PLC Rights, Expire 5/03/96 (b) 428,000 65
Helicopter Line, Ltd. 153,000 336
Shortland Properties, Ltd. 2,041,000 1,247
Sky City, Ltd. (b) 319,500 1,358
Wrightson, Ltd. 900,000 643
-----
11,653
NORWAY 1.7%
Alvern Norway AS (b) 62,000 694
Computer Advances AS (b) 30,000 411
Helikopter Service AS 64,000 726
Netcom ASA (b) 57,000 821
Schibsted Group AS 110,000 1,608
Tomra Systems AS 133,000 1,235
-----
5,495
PAKISTAN 0.6%
Pakistan Investment Fund, Inc. 161,700 $1,071
Pakistan Telecommunications Corporation GDR (b) 8,000 824
-----
1,895
PAPUA/NEW GUINEA 0.2%
Lihir Gold, Ltd. (b) 360,000 583
PERU 0.7%
Minsur SA 117,000 947
Southern Peru Copper Corporation 71,000 1,331
-----
2,278
PHILIPPINES 1.0%
Benpres Holdings Corporation Sponsored GDR (b) 139,000 1,026
Philippine Long Distance Telephone Company ADR 15,000 754
Philippine National Bank (b) 52,000 775
SM Prime Holdings, Inc. GDR (b) 57,800 794
-----
3,349
POLAND 0.5%
The Fleming Poland Fund, Ltd. Redeemable
Participating Preference 'A' Shares (b) 153,061 1,512
The Fleming Poland Fund, Ltd. Warrants,
Expire 1/31/99 (b) 30,612 61
-----
1,573
RUSSIA 1.7%
The Central European Growth Fund PLC 2,657,000 2,618
First NIS Regional Fund (b) 40,000 360
The Fleming Russia Securities Fund, Ltd.
(Acquired 8/17/94-9/28/94; Cost $1,661) (b) (d) 165,000 1,135
Oil Company Lukoil Sponsored ADR 10,000 239
Oil Company Lukoil Sponsored ADR
(Acquired 9/20/95; Cost $1,155) (d) 47,345 1,130
-----
5,482
SINGAPORE 4.3%
Acma, Ltd. 274,800 821
Dairy Farm International Holdings, Ltd. 336,518 313
The Development Bank of Singapore, Ltd.
(Fgn Reg) (b) 35,000 443
Hong Leong Finance, Ltd. (Fgn Reg) 266,000 1,088
Hongkong Land Holdings, Ltd. 858,142 1,837
Jardine Matheson Holdings, Ltd. 104,808 839
Jardine Strategic Holdings, Ltd. 419,625 1,376
Jardine Strategic Holdings, Ltd. Warrants,
Expire 5/02/98 (b) 46,625 18
Keppel Corporation, Ltd. 262,000 2,367
Overseas Union Bank 38,000 295
Robinson & Company, Ltd. 18,000 74
ST Computer Systems & Services, Ltd. (Fgn Reg) 255,000 207
Singapore Airlines, Ltd. (Fgn Reg) 90,000 909
Singapore Land, Ltd. 184,000 1,309
Singapore Sesdaq Fund (b) 36,000 729
United Overseas Land, Ltd. 544,000 1,134
Van Der Horst, Ltd. 29,000 143
------
13,902
SOUTH AFRICA 0.8%
De Beers Consolidated Mines, Ltd. ADR 8,000 254
Energy Africa, Ltd. GDR (Acquired 2/23/96;
Cost $851) (b) (d) 70,000 857
Energy Africa, Ltd. GDS (b) 15,000 184
Morgan Stanley Africa Investment Fund, Inc. 73,000 922
Wooltru, Ltd. 65,000 270
-----
2,487
SOUTH KOREA 1.9%
Kookmin Bank 66,581 1,463
Korea Electric Power Corporation 38,210 1,615
Korean Air Lines Company, Ltd. 38,218 1,237
Ssangyong Investment & Securities Company,
Ltd. (b) 78,920 1,876
-----
6,191
</TABLE>
See notes to financial statements.
15
<PAGE> 18
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
STRONG INTERNATIONAL STOCK FUND (continued)
<TABLE>
<CAPTION>
Shares or Value
Principal (Note 2)
Amount (In Thousands)
- --------------------------------------------------------------------------------------------
<S> <C> <C>
SPAIN 2.5%
Construcciones y Auxiliar de Ferrocarriles SA 22,000 $ 776
Corporacion Bancaria de Espana SA ADR 32,000 648
Cortefiel SA 82,000 1,773
Fomento de Construcciones y Contratas SA 11,600 990
Repsol SA ADR 24,000 888
Sotogrande SA (b) 360,000 792
Telefonica de Espana SA 116,000 2,066
-----
7,933
SWEDEN 0.8%
Argonaut AB 'B Shares' (b) 467,000 723
Marieberg Tidnings AB 38,000 891
Rottneros AB 710,000 828
-----
2,442
SWITZERLAND 2.6%
Crossair AG 2,250 970
Nestle AG 1,950 2,169
Reisebuero Kuoni AG 800 1,611
SGS (Societe Generale de Surveillance) Holdings SA 1,250 2,819
SMH (Suisse Microelectronique et d'Horlogerie) 250 168
Sulzer AG Registered Shares 1,000 675
-----
8,412
TAIWAN 1.4%
Evergreen Marine Corporation 651,500 1,211
Jardine Fleming Fund 1,835,000 604
Kwang Hua Fortune Fund 986,000 363
NITC Fu-yuan Fund 1,579,000 587
The Taipei Fund IDR 14 1,148
Yuan Ta Duo Yuan Fund 1,759,000 524
-----
4,437
THAILAND 2.8%
Finance One PCL (Fgn Reg) 97,000 680
Italian-Thai Development PCL (Fgn Reg) 88,600 814
Krung Thai Bank Republic Company, Ltd. 154,000 757
Loxley PCL (Fgn Reg) 46,400 658
Matichon Newspaper PCL (Fgn Reg) (b) 158,000 1,224
Property Perfect PCL (Fgn Reg) 150,000 731
The Ruam Pattana Two Fund (Fgn Reg) (b) 2,473,300 1,617
Saha Union PCL (Fgn Reg) 759,800 1,023
Thai Airways International PCL (Fgn Reg) 203,000 450
Thai Engine Manufacturing PCL 170,000 1,185
-----
9,139
TURKEY 1.6%
Ardem TI (b) 2,330,000 580
Enka Holding Yatirim (b) 2,753,000 823
Tukas 3,300,000 690
Tumteks Tekstil (b) 3,863,000 693
The Turkey Trust PLC 420,000 1,365
Turkish Investment Fund, Inc. 200,000 1,150
-----
5,301
UNITED KINGDOM 4.5%
Allied Domecq PLC 194,000 1,499
Amstrad PLC 266,000 784
British Biotech PLC (b) 15,000 660
Cordiant PLC (b) 874,000 1,775
Cordiant PLC Sponsored ADR (b) 33,200 203
De La Rue PLC 73,000 815
Enterprise Oil PLC 270,000 1,818
Harvey Nichols Group PLC (b) 200,000 972
Inchcape PLC 507,263 2,228
Invesco PLC 162,000 617
Lonrho PLC 215,717 628
News International PLC 253,000 1,269
Royal Doulton PLC 287,000 1,310
Takare PLC 65,000 147
-------
14,725
UNITED STATES 0.5%
Harken Energy Corporation (b) 300,000 $ 881
United International Holdings, Inc. (b) 51,000 733
-------
1,614
OTHER 0.2%
The Foreign & Colonial Emerging Middle
East Fund, Inc. (b) 48,900 575
-------
TOTAL COMMON STOCKS (COST $266,504) 283,884
PREFERRED STOCKS 2.9%
AUSTRALIA 0.3%
The News Corporation, Ltd. Voting 161,216 829
BRAZIL 0.6%
Companhia Antartica Paulista - Industria
Brasileira de Bebidas e Conexos (b) 10,340 1,251
Petroleo Brasileiro SA-Petrobras 6,500,000 757
-------
2,008
GERMANY 1.3%
BBS Kraftfahrzeugtechnik AG (b) 4,101 775
Hornbach Holding AG 17,000 1,089
KSB Group Non-Voting 7,000 798
Porsche AG Non-Voting (b) 1,500 821
Puma AG Non-Voting 2,300 797
-------
4,280
SOUTH KOREA 0.1%
Daeyu Securities Company, Ltd. (b) 40,000 426
THAILAND 0.6%
Thai Prime Fund, Ltd. 110,000 2,013
-----
TOTAL PREFERRED STOCKS (COST $9,453) 9,556
CONVERTIBLE CORPORATE BONDS 0.4%
JAPAN
MBL International Finance Bermuda Trust
Guaranteed Exchangeable Notes, 3.00%,
Due 11/30/02 (COST $1,000) 1,000 USD 1,157
CORPORATE BONDS 0.3%
BRAZIL
OPP Petroquimica Bonds, 11.50%, Due 2/23/04
(Acquired 2/15/96) (COST $997) (d) 1,000 USD 995
GOVERNMENT AND AGENCY ISSUES 1.2%
ARGENTINA 0.3%
Republic of Argentina Variable Rate Debentures,
6.3125%, Due 3/31/05 1,485 USD 1,134
NEW ZEALAND 0.9%
Government of New Zealand Notes, 8.00%,
Due 11/15/06 4,190 NZD 2,758
TOTAL GOVERNMENT AND -----
AGENCY ISSUES (COST $4,000) 3,892
CASH EQUIVALENTS (a) 7.5%
COMMERCIAL PAPER 0.0%
INTEREST BEARING, DUE UPON DEMAND
UNITED STATES
United States Cayman Eurodollar Call
Deposit, 4.25% $5 5
TIME DEPOSITS 7.5%
LEBANON 0.2%
Citibank Time Deposit (with Lebanese Pound
indexation and interest based on the Lebanese
denominated deposit), 15.20%, Due 11/01/96 750 USD 771
POLAND 0.3%
Citibank Time Deposit (with Polish Llot indexation
and interest based on the Polish denominated
deposit), 17.00%, Due 6/14/96 1,000 USD 992
</TABLE>
See notes to financial statements.
16
<PAGE> 19
- --------------------------------------------------------------------------------
STRONG INTERNATIONAL STOCK FUND (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
Shares or Value
Principal (Note 2)
Amount (In Thousands)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES 7.0%
Deutsche Bank Time Deposit, 5.3125%, Due 5/01/96 $16,000 $ 16,000
Republic National Bank of New York Time Deposit,
5.3125%, Due 5/01/96 6,800 6,800
--------
22,800
-------
Total Time Deposits 24,563
-------
TOTAL CASH EQUIVALENTS (COST $24,555) 24,568
------
TOTAL INVESTMENTS IN SECURITIES
(COST $306,509) 99.9% 324,052
Other Assets and Liabilities, Net 0.1% 332
-------
NET ASSETS 100.0% $324,384
========
</TABLE>
<TABLE>
<CAPTION>
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
- --------------------------------------------------------------------------------------------------------------------------------
Unrealized
Value Appreciation
Settlement in USD (Depreciation)
Date (In Thousands) (In Thousands)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold:
9,030,000 DEM 10/25/96 $ 5,974 $ 26
25,000,000 FRF 8/14/96 4,860 108
40,609,600 FRF 10/25/96 7,923 51
7,880,091 GBP 7/03/96 11,846 155
1,461,772,751 JPY 8/01/96 14,155 (208)
2,775,073,249 JPY 8/13/96 26,915 (308)
</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE OF
INDUSTRY DIVERSIFICATION NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Closed-End Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.8%
Conglomerate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.3
Engineering & Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.3
Leisure Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.0
Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.8
Bank - Money Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.5
Metals & Mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1
Media - Publishing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.9
Oil - International Integrated. . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0
Brokerage & Investment Management . . . . . . . . . . . . . . . . . . . . . . . . . 2.8
Consumer - Miscellaneous. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7
Finance - Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6
Steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4
Telecommunication Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4
Shoe & Apparel Manufacturing. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3
Electronic Products - Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . 2.2
Machinery - Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.9
Airline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.6
Beverage - Alcoholic. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.6
Food. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.6
Retail - Specialty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.6
Retail - Major Chain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5
Foreign Government. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2
Paper & Forest Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2
Leisure Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1
Beverage - Soft Drink . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0
Cosmetic & Personal Care. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9
Retail - Food Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9
Auto & Truck Parts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8
Electric Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8
Chemical. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7
Automobile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6
Household Appliance & Furnishings . . . . . . . . . . . . . . . . . . . . . . . . . 0.6
Metal Product & Fabrication . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6
Shipping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6
Agricultural Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5
PERCENTAGE OF
INDUSTRY DIVERSIFICATION (continued) NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Housing Related. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5%
Index Based. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5
Natural Gas Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5
Machine Tool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4
Retail - Department Store. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4
Media - Radio/TV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3
Railroad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3
Telecommunication Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3
Diversified Operation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2
Electrical Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2
Healthcare - Drug / Diversified. . . . . . . . . . . . . . . . . . . . . . . . . . 0.2
Machinery - Construction & Mining. . . . . . . . . . . . . . . . . . . . . . . . . 0.2
Machinery - Transportation Equipment & Parts . . . . . . . . . . . . . . . . . . . 0.2
Telephone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2
Transportation Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2
Computer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1
Computer Software. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1
Insurance - Multi-Line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1
Precious Metal/Gem/Stone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1
Cash Equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.5
Other Assets and Liabilities, Net. . . . . . . . . . . . . . . . . . . . . . . . . .1
-----
Total 100.0%
=====
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
STRONG ASIA PACIFIC FUND
Shares or Value
Principal (Note 2)
Amount (In Thousands)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS 86.0%
AUSTRALIA 10.4%
AAPC, Ltd. 462,560 $ 309
Aberfoyle, Ltd. 235,000 687
Boral, Ltd. 195,000 509
Casinos Austria International, Ltd. (b) 144,931 83
Coca-Cola Amatil, Ltd. 43,789 461
Coles Myer, Ltd. 124,000 448
Email, Ltd. 164,000 460
ERG Australia, Ltd. 160,000 191
ERG, Ltd. New (b) 40,000 48
John Fairfax Holdings, Ltd. 260,000 617
Lend Lease Corporation, Ltd. 28,000 427
Macmahon Holdings, Ltd. 500,000 314
Mount Edon Gold Mines, Ltd. (b) 155,000 304
Nautilus Australia, Ltd. (b) 491,000 251
Newcrest Mining, Ltd. 55,000 265
Normandy Mining, Ltd. (b) 453,203 797
Normandy Mining, Ltd. Warrants,
Expire 4/30/01 (b) 181,281 72
Novus Petroleum, Ltd. 426,000 609
Oil Search, Ltd. 682,000 696
Resolute Samantha, Ltd. 154,000 383
Sydney Aquarium, Ltd. 307,950 701
Western Mining Corporation, Ltd. 48,000 350
-----
8,982
CHINA 3.5%
The China Fund, Inc. 48,000 654
China International Marine Containers, Ltd.
'B Shares' 600,000 492
Ek Chor China Motorcycle Company, Ltd. 35,800 528
Inner Mongolia Erdos Cashmere 'B' (b) 727,000 345
Shandong Huaneng Power Company, Ltd. ADR 56,000 518
Yizheng Chemical Fibre Company, Ltd. 1,910,000 519
-----
3,056
</TABLE>
See notes to financial statements.
17
<PAGE> 20
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
STRONG ASIA PACIFIC FUND (continued)
<TABLE>
<CAPTION>
Shares or Value
Principal (Note 2)
Amount (In Thousands)
- --------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG 3.2%
Amoy Properties, Ltd. 288,000 $ 324
CDL Hotels International, Ltd. 1,576,887 902
Guoco Group, Ltd. 81,000 403
Hong Kong Telecommunications, Ltd.
Sponsored ADR 5,000 95
Nanjing Panda Electronics Company, Ltd. (b) 1,342,000 373
Peregrine Investments Holdings, Ltd. 434,000 670
-----
2,767
INDIA 4.5%
Asian Hotels, Ltd. 40,000 359
Bajaj Auto, Ltd. GDR (Acquired 10/28/94;
Cost $101) (b) (d) 4,000 143
IS Himilayan Fund NV (b) 43,000 666
The India Gateway Fund, Ltd. (b) 25,000 160
The India Gateway Fund, Ltd. Warrants,
Expire 5/31/97 (b) 5,000 --
India Growth Fund, Inc. 14,000 228
Indian Hotels Company, Ltd. Registered Shares (b) 15,000 443
Oriental Bank of Commerce 128,000 319
Peregrine Indian Smaller Companies Fund (b) 2,000 155
Reliance Industries, Ltd. 45,500 343
State Bank of India, Ltd. (b) 26,800 235
Steel Authority of India, Ltd. GDR (b) 5,000 77
Steel Authority of India, Ltd. GDR
(Acquired 3/07/96; Cost $376) (b) (d) 29,000 446
Titan Industries, Ltd. 88,300 307
-----
3,881
INDONESIA 8.7%
APAC Centertex Corporation (Fgn Reg) (b) 1,000,000 1,073
Bank Bali PT (Fgn Reg) 157,100 405
Bank Tiara Asia PT (Fgn Reg) 300,000 380
Bukaka Teknik Utama PT IDR (b) 349,000 599
Dharnala Intiland PT (Fgn Reg) 1,066,000 835
Jaya Real Property PT (Fgn Reg) 70,000 243
Kawasan Industries Jababeka PT (Fgn Reg) 482,000 972
Komatsu Indonesia PT (Fgn Reg) (b) 494,000 371
Lippo Bank PT (Fgn Reg) 200,000 455
Matahari Putra Prima PT (Fgn Reg) 97,000 195
Sekar Bumi (Fgn Reg) (b) 180,500 140
Semen Cibinong PT (Fgn Reg) 204,000 604
Steady Safe PT (Fgn Reg) 198,000 295
Tambang Timah PT (Persero) GDR Series B
(Acquired 10/06/95-1/26/96; Cost $741) (b) (d) 58,000 1,001
-----
7,568
JAPAN 21.9%
Aderans Company, Ltd. Warrants,
Expire 8/19/97 (CHF) (b) 250 72
Amway Japan, Ltd. Premium Exchangeable
Participating Shares Trust 6,800 151
Benesse Corporation 4,650 439
Bunkyodo Japan Company 200 5
C-Cube Corporation 33,000 284
Canon Sales Company, Inc. 21,000 587
Canon Sales Company, Inc. Warrants,
Expire 11/11/97 (b) 1,000 151
Charle Company 6,000 89
Chubu Steel Plate Company, Ltd. 105,000 715
Citizen Watch Company, Ltd. Warrants,
Expire 10/22/96 (b) 2,200 770
Diamond City Company 38,000 340
East Japan Railway Company 76 405
FamilyMart 11,000 537
HIS Company, Ltd. 5,000 294
Heiwa Corporation 25,000 598
Hirata Technical Company, Ltd. 18,000 314
Hitachi, Ltd. 18,000 194
Hokuetsu Metal 44,000 $ 235
Ishiguro Homa Corporation 20,000 443
Ishikawajima Harima Heavy Industries
Company, Ltd. 160,000 794
Japan Industrial Land Development 5,500 195
Komori Corporation 13,000 345
Kumagai Gumi Company, Ltd. (b) 105,000 450
Marubeni Corporation 81,000 484
Maspro Denkoh Corporation 1,200 33
Mitsubishi Corporation 30,000 426
Mitsui Fudosan (b) 52,000 684
Mitsui Trust & Banking Company, Ltd. 28,000 336
Morgan Stanley Group, Inc. Nikkei 225 Index
Call Warrants (b) 42,000 441
Mori Seiki Company, Ltd. 12,000 274
New OJI Paper Company, Ltd. Warrants,
Expire 7/30/98 (b) 175 307
Nichiha 23,100 423
Nippon Shinpan Company 74,000 551
Nippon Telegraph & Telephone Corporation 38 294
Nomura Securities Company, Ltd. (b) 58,000 1,261
Ohmoto Gumi Company, Ltd. 24,640 557
Olympus Optical Company, Ltd. Warrants,
Expire 12/03/96 (b) 1,500 431
Salomon & Taylor Made Company, Ltd. 17,000 254
Shinseido Company, Ltd. 33,000 362
Shiseido Company, Ltd. 34,000 428
TOC Company, Ltd. 50,000 577
Takeda Printing Company, Ltd. 29,000 434
Toho Company 2,010 349
Toko Seiki Company 26,000 195
Tokyo Tungsten Company 25,000 243
Trinity Industrial 72,000 522
Xebio Company, Ltd. 14,000 521
Yodogawa Steel Work Warrants,
Expire 12/10/97 (b) 100 172
-----
18,966
MALAYSIA 3.3%
ACP Industries BHD 111,000 543
Batu Kawan BHD 244,500 544
IJM Corporation BHD 'A' 163,000 314
Kentucky Fried Chicken BHD 49,000 295
Petronas Gas BHD 25,000 110
Road Builder Holdings BHD 153,000 675
Selangor Dredging BHD 107,000 84
TA Enterprise BHD 150,000 259
-----
2,824
NEW ZEALAND 8.5%
AFFCO Holdings, Ltd. 1,039,475 464
Air New Zealand, Ltd. Class B 152,000 532
CDL Hotels New Zealand, Ltd. (b) 352,000 135
Carter Holt Harvey, Ltd. 81,000 192
Corporate Investments, Ltd. (b) 950,000 320
Dairy Brands New Zealand, Ltd. 430,000 266
Direct Capital Partners, Ltd. (b) 1,040,000 528
Evergreen Forests, Ltd. (b) 1,200,000 519
Fernz Corporation, Ltd. 68,470 212
Fletcher Challenge Energy (b) 121,000 259
Fletcher Challenge, Ltd. Forestry Division 373,452 482
Guinness Peat Group PLC 1,663,750 1,028
Guinness Peat Group PLC Rights,
Expire 5/03/96 (b) 165,000 25
Helicopter Line, Ltd. 91,600 201
Hellaby Holdings, Ltd. 200,400 249
Lane Walker Rudkin Industries, Ltd. 150,000 199
Ports of Auckland, Ltd. 1 --
Shortland Properties, Ltd. 1,020,000 623
</TABLE>
See notes to financial statements.
18
<PAGE> 21
- --------------------------------------------------------------------------------
STRONG ASIA PACIFIC FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL (NOTE 2)
AMOUNT (In Thousands)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Sky City, Ltd. (b) 109,000 $ 463
Trans Tasman Properties (b) 772,000 408
Wrightson, Ltd. 330,000 236
-----
7,341
PAKISTAN 0.7%
Pakistan Investment Fund, Inc. 48,100 319
Pakistan Telecommunications Corporation,
Ltd. GDR (Acquired 9/16/94-4/18/96;
Cost $366) (b) (d) 3,000 309
-----
628
PAPUA/NEW GUINEA 0.6%
Lihir Gold, Ltd. (b) 330,000 534
PHILIPPINES 2.4%
Benpres Holdings Corporation GDR (Acquired
10/25/94-1/30/96; Cost $718) (b) (d 79,080 584
Far East Bank & Trust Company 14,000 511
Philippine Long Distance Telephone Company ADR 4,000 201
Philippine National Bank (b) 28,890 431
SM Prime Holdings, Inc. GDR (Acquired 6/15/94;
Cost $95) (b) (d) 12,351 170
Urban Bank, Inc. 20,000 139
-----
2,036
RUSSIA 0.3%
The Fleming Russia Securities Fund, Ltd. (Acquired
8/17/94-9/28/94; Cost $366) (b) (d) 36,000 248
SINGAPORE 7.5%
Acma, Ltd. 172,800 516
Bukit Sembawang Estates, Inc. 9,000 246
Cosco Investments, Ltd. 196,000 255
Dairy Farm International Holdings, Ltd. 77,700 72
The Development Bank of Singapore,
Ltd. (Fgn Reg) (b) 5,000 63
Fraser & Neave, Ltd. 10,440 116
GB Holdings, Ltd. 129,000 107
Hong Leong Finance, Ltd. (Fgn Reg) 129,000 528
Hongkong Land Holdings, Ltd. 336,737 721
Jardine Matheson Holdings, Ltd. 25,326 203
Jardine Strategic Holdings, Ltd. 144,750 475
Jardine Strategic Holdings, Ltd. Warrants,
Expire 5/02/98 (b) 12,750 5
Keppel Corporation, Ltd. 70,000 632
Lim Kah Ngam, Ltd. (b) 152,000 171
Osprey Maritime, Ltd. (b) 183,000 485
Robinson & Company, Ltd. 7,000 29
ST Computer Systems & Services, Ltd. (Fgn Reg) 29,000 24
Singapore Airlines, Ltd. (Fgn Reg) 30,000 303
Singapore Land, Ltd. 105,000 747
Singapore Sesdaq Fund (b) 23,000 466
United Overseas Land, Ltd. 114,000 238
Van Der Horst, Ltd. 18,000 89
-----
6,491
SOUTH KOREA 2.3%
Hana Bank 24,230 510
Korea Electric Power Corporation 13,800 583
Korean Air Lines Company, Ltd. 7,200 233
Ssangyong Investment & Securities
Company, Ltd. (b) 27,024 642
-----
1,968
TAIWAN 2.4%
Core Pacific Pioneer Fund (b) 166,000 43
Evergreen Marine Corporation 219,400 408
Jardine Fleming Fund 520,000 171
Kwang Hua Fortune Fund 249,000 92
NITC Fu-yuan Fund 447,000 166
The R.O.C. Taiwan Fund (b) 15,000 161
Siliconware Precision Industries Company, Ltd.
GDR (Acquired 9/19/95; Cost $289) (b) (d) 19,000 258
The Taipei Fund IDR 8 656
Yuan Ta Duo Yuan Fund 506,000 151
-----
2,106
THAILAND 4.2%
Alphatec Electronics PCL (Fgn Reg) 17,000 186
Finance One PCL (Fgn Reg) 31,000 217
Italian-Thai Development PCL (Fgn Reg) 27,000 248
Krung Thai Bank Republic Company, Ltd. 90,000 442
Land & Houses PCL (Fgn Reg) 5,000 77
Loxley PCL (Fgn Reg) 16,000 227
Matichon Newspaper PCL (Fgn Reg) (b) 76,000 589
Property Perfect PCL (Fgn Reg) 60,000 292
The Ruam Pattana Two Fund (Fgn Reg) (b) 435,000 284
Saha Union PCL (Fgn Reg) 422,700 569
Sri Trang Agro-Industry PCL (Fgn Reg) 50,000 66
Thai Airways International PCL (Fgn Reg) 42,000 93
Thai Engine Manufacturing PCL 49,000 342
-----
3,632
UNITED KINGDOM 0.8%
Millenium & Copthorne PLC (b) 68,000 326
News International PLC 79,000 396
-----
722
UNITED STATES 0.5%
United International Holdings, Inc. (b) 31,000 446
VIETNAM 0.3%
Beta Mekong Fund, Ltd. (b) 5,000 243
-----
TOTAL COMMON STOCKS (COST $69,967) 74,439
PREFERRED STOCKS 1.6%
AUSTRALIA 0.2%
The News Corporation, Ltd. Voting 41,014 211
SOUTH KOREA 0.3%
Korean Air Lines Company, Ltd. 14,860 244
THAILAND 1.1%
Thai Prime Fund, Ltd. 52,000 952
-----
TOTAL PREFERRED STOCKS (COST $1,310) 1,407
CONVERTIBLE BONDS 0.4%
AUSTRALIA 0.0%
Sydney Aquarium, Ltd. Bonds, 13.80%,
Due 3/15/08 13 AUD 25
JAPAN 0.4%
MBL International Finance Bermuda Trust
Guaranteed Exchangeable Notes, 3.00%,
Due 11/30/02 280 USD 324
-----
TOTAL CONVERTIBLE BONDS (COST $323) 349
GOVERNMENT AND AGENCY ISSUES 0.9%
NEW ZEALAND
Government of New Zealand Notes, 8.00%,
Due 11/15/06 (COST $843) 1,220 NZD 803
CASH EQUIVALENTS (a) 11.2%
COMMERCIAL PAPER 2.8%
DISCOUNTED 2.8%
THAILAND
Bakrie and Brothers PT, Due 8/07/96 500 USD 478
Bangchak Petroleum Bills of Exchange:
Due 5/07/96 20,000 THB 792
Due 7/26/96 30,000 THB 1,164
-----
2,434
INTEREST BEARING, DUE UPON DEMAND 0.0%
UNITED STATES
United States Cayman Eurodollar
Call Deposit, 4.25% $3,000 3
-----
Total Commercial Paper 2,437
</TABLE>
See notes to financial statements.
19
<PAGE> 22
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
STRONG ASIA PACIFIC FUND (continued)
<TABLE>
<CAPTION>
SHARES OR VALUE
PRINCIPAL (NOTE 2)
AMOUNT (In Thousands)
- --------------------------------------------------------------------------
<S> <C> <C>
TIME DEPOSITS 8.4%
UNITED STATES
Republic National Bank of New York Time
Deposit, 5.3125%, Due 5/01/96 $2,900 $ 2,900
Royal Bank of Canada Time Deposit, 5.3125%,
Due 5/01/96 4,300 4,300
-------
7,200
-------
Total Cash Equivalents (COST $9,644) 9,637
-------
TOTAL INVESTMENTS IN SECURITIES
(COST $82,087) 100.1% 86,635
Other Assets & Liabilities, Net (0.1%) (54)
-------
NET ASSETS 100.0% $86,581
=======
</TABLE>
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
- ---------------------------------------------------------
<TABLE>
<CAPTION>
UNREALIZED
VALUE APPRECIATION
SETTLEMENT IN USD (DEPRECIATION)
DATE (IN THOUSANDS) (IN THOUSANDS)
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold:
356,781,242 JPY 8/01/96 $ 3,455 ($ 51)
1,056,338,758 JPY 8/13/96 10,245 (117)
20,000,000 THB 5/07/96 792 (8)
30,000,000 THB 7/26/96 1,182 (2)
</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE OF
INDUSTRY DIVERSIFICATION NET ASSETS
- -----------------------------------------------------------------------------
<S> <C>
Real Estate........................................................ 8.8%
Conglomerate....................................................... 7.5
Engineering & Construction......................................... 7.3
Closed-End Fund.................................................... 6.7
Metals & Mining.................................................... 6.0
Bank - Money Center................................................ 5.9
Leisure Service.................................................... 5.3
Brokerage & Investment Management.................................. 3.0
Electronic Products - Miscellaneous................................ 2.6
Media - Publishing................................................. 2.6
Shoe & Apparel Manufacturing....................................... 2.6
Shipping........................................................... 2.2
Consumer - Miscellaneous........................................... 1.8
Machinery - Miscellaneous.......................................... 1.8
Finance - Miscellaneous............................................ 1.7
Paper & Forest Products............................................ 1.7
Airline............................................................ 1.6
Steel.............................................................. 1.6
Oil - International Integrated..................................... 1.5
Electric Power..................................................... 1.3
Agricultural Operations............................................ 1.1
Metal Product & Fabrication........................................ 1.1
Leisure Product.................................................... 1.0
Retail - Food Chain................................................ 1.0
Cosmetic & Personal Care........................................... 0.9
Foreign Government................................................. 0.9
Retail - Specialty................................................. 0.8
Telecommunication Service.......................................... 0.8
Beverage - Soft Drink.............................................. 0.7
Chemical........................................................... 0.6
Electronics - Semiconductor/Component.............................. 0.5
Food............................................................... 0.5
Household Appliance & Furnishings.................................. 0.5
</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE OF
INDUSTRY DIVERSIFICATION (CONTINUED) NET ASSETS
- -----------------------------------------------------------------------------
<S> <C>
Housing Related................................................. 0.5%
Index Based..................................................... 0.5
Media - Radio/TV................................................ 0.5
Railroad........................................................ 0.5
Retail - Major Chain............................................ 0.5
Auto & Truck Parts.............................................. 0.4
Machinery - Construction & Mining............................... 0.4
Natural Gas Distribution........................................ 0.4
Machine Tool.................................................... 0.3
Retail - Department Store....................................... 0.3
Transportation Service.......................................... 0.3
Automobile...................................................... 0.2
Telephone....................................................... 0.2
Cash Equivalents................................................ 11.2
Other Assets and Liabilities, Net............................... (0.1)
-----
Total........................................................... 100.0%
=====
</TABLE>
LEGEND
- ------
(a) Cash equivalents include any security which has a maturity of less
than one year.
(b) Non-income producing security.
(c) Security pledged to cover margin requirements for futures contracts.
(d) Restricted security.
All principal amounts and costs stated in thousands.
<TABLE>
<CAPTION>
CURRENCY ABBREVIATIONS
- ----------------------
<S> <C>
AUD Australian Dollar
CAD Canadian Dollar
CHF Swiss Franc
DEM German Mark
DKK Danish Krona
FIM Finish Mark
FRF French Franc
GBP British Pound
IDR Indonesian Rupiah
IEP Irish Punt
ITL Italian Lira
JPY Japanese Yen
NOK Norwegian Kroner
NZD New Zealand Dollar
THB Thailand Baht
USD United States Dollar
</TABLE>
See notes to financial statements.
20
<PAGE> 23
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
For the Six Months Ended April 30, 1996 (Unaudited) (Note 1)
<TABLE>
<CAPTION>
(In Thousands)
Strong Short-Term Strong International
Global Bond Fund Bond Fund
----------------- --------------------
<S> <C> <C>
INTEREST INCOME $ 1,038 $ 959
EXPENSES:
Investment Advisory Fees 89 108
Custodian Fees 60 64
Shareholder Servicing Costs 30 37
Reports to Shareholders 13 14
Federal and State Registration Fees 38 44
Other 13 12
------- -------
Total Expenses before Waivers and Absorptions 243 279
Voluntary Expense Waivers and Absorptions by Advisor (243) (279)
------- -------
Expenses, Net -- --
------- -------
NET INVESTMENT INCOME 1,038 959
REALIZED AND UNREALIZED GAIN (LOSS):
Net Realized Gain (Loss) on:
Investments 62 (25)
Futures Contracts, Options and Forward Foreign Currency Contracts 60 (434)
Foreign Currencies (8) (12)
Change in Unrealized Appreciation/Depreciation on:
Investments (73) (74)
Futures Contracts, Options, and Forward Foreign Currency Contracts 335 15
Assets and Liabilities Denominated in Foreign Currencies (6) (8)
------- -------
NET GAIN (LOSS) 370 (538)
------- -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,408 $ 421
======= =======
</TABLE>
<TABLE>
<CAPTION>
Strong International Strong Asia
Stock Fund Pacific Fund
-------------------- ------------
<S> <C> <C>
INCOME:
Dividends (net of withholding taxes of $234 and $65, respectively) $ 2,337 $ 636
Interest 757 335
------- -------
Total Income 3,094 971
EXPENSES:
Investment Advisory Fees 1,340 385
Custodian Fees 335 141
Shareholder Servicing Costs 297 115
Reports to Shareholders 150 18
Other 47 32
------- -------
Total Expenses 2,169 691
------- -------
NET INVESTMENT INCOME 925 280
REALIZED AND UNREALIZED GAIN (LOSS):
Net Realized Gain (Loss) on:
Investments 9,141 897
Futures Contracts, Options and Forward Currency Contracts 7,233 2,051
Foreign Currencies (289) (87)
Change in Unrealized Appreciation/Depreciation on:
Investments 28,584 9,272
Futures Contracts, Options and Forward Currency Contracts (4,235) (1,415)
Assets and Liabilities Denominated in Foreign Currencies 128 (7)
------- -------
NET GAIN 40,562 10,711
------- -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $41,487 $10,991
======= =======
</TABLE>
See notes to financial statements.
21
<PAGE> 24
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
(In Thousands, Except Per Share Amounts)
Strong Short-Term Strong International
Global Bond Fund Bond Fund
----------------- --------------------
<S> <C> <C>
ASSETS:
Investments in Securities, at Value (Cost of $35,102 and $27,845, respectively) $ 35,385 $ 28,155
Receivable from Brokers for Securities and Forward Foreign Currency Contracts Sold 3,136 1,312
Receivable for Fund Shares Sold 72 21
Interest Receivable 575 547
Other Assets 70 103
----------- ------------
Total Assets 39,238 30,138
LIABILITIES:
Payable to Brokers for Securities and Forward Foreign Currency Contracts Purchased 4,431 2,535
Payable for Fund Shares Redeemed 88 69
Payable to Advisor for Organizational Costs 77 74
----------- ------------
Total Liabilities 4,596 2,678
----------- ------------
NET ASSETS $ 34,642 $ 27,460
=========== ============
Capital Shares
Authorized 10,000,000 10,000,000
Outstanding 3,271 2,423
NET ASSET VALUE PER SHARE $ 10.59 $ 11.33
=========== ============
</TABLE>
<TABLE>
<CAPTION>
Strong International Strong Asia
Stock Fund Pacific Fund
-------------------- ------------
<S> <C> <C>
ASSETS:
Investments in Securities, at Value (Cost of $306,509 and $82,087, respectively) $ 324,052 $ 86,635
Receivable from Brokers for Securities and Forward Foreign Currency Contracts Sold 36,266 9,746
Receivable for Fund Shares Sold 1,673 431
Dividends and Interest Receivable 1,167 286
Other Assets -- 640
----------- ------------
Total Assets 363,158 97,738
LIABILITIES:
Payable to Brokers for Securities and Forward Foreign Currency Contracts Purchased 31,927 10,420
Payable for Fund Shares Redeemed 1,128 528
Accrued Operating Expenses and Other Liabilities 5,719 209
----------- ------------
Total Liabilities 38,774 11,157
----------- ------------
NET ASSETS $ 324,384 $ 86,581
=========== ===========
Capital Shares
Authorized 10,000,000 10,000,000
Outstanding 21,738 8,057
NET ASSET VALUE PER SHARE $ 14.92 $ 10.75
=========== ===========
</TABLE>
See notes to financial statements.
22
<PAGE> 25
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
For the Periods Ended April 30, 1996 (Unaudited) and October 31, 1995 (Note 1)
<TABLE>
<CAPTION>
(In Thousands)
Strong Short-Term Strong International
Global Bond Fund Bond Fund
----------------------------- -----------------------------
April 30, 1996 Oct. 31, 1995 April 30, 1996 Oct. 31, 1995
-------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net Investment Income $ 1,038 $ 1,212 $ 959 $ 990
Net Realized Gain (Loss) 114 (99) (471) 458
Change in Unrealized Appreciation/Depreciation 256 269 (67) 340
-------- -------- ------- -------
Increase in Net Assets Resulting from Operations 1,408 1,382 421 1,788
CAPITAL SHARE TRANSACTIONS 9,096 5,072 6,457 10,451
DISTRIBUTIONS:
From Net Investment Income (1,033) (965) (616) (850)
From Net Realized Gains -- -- (137) --
-------- -------- ------- -------
TOTAL INCREASE IN NET ASSETS 9,471 5,489 6,125 11,389
NET ASSETS:
Beginning of Period 25,171 19,682 21,335 9,946
-------- -------- ------- -------
End of Period $ 34,642 $ 25,171 $27,460 $21,335
======== ======== ======= =======
</TABLE>
<TABLE>
<CAPTION>
Strong International Strong Asia
Stock Fund Pacific Fund
----------------------------- -----------------------------
April 30, 1996 Oct. 31, 1995 April 30, 1996 Oct. 31, 1995
-------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net Investment Income $ 925 $ 1,492 $ 280 $ 234
Net Realized Gain (Loss) 16,085 (806) 2,861 (369)
Change in Unrealized Appreciation/Depreciation 24,477 6,549 7,850 1,787
-------- -------- ------- -------
Increase in Net Assets Resulting from Operations 41,487 7,235 10,991 1,652
CAPITAL SHARE TRANSACTIONS 78,420 (52,367) 23,076 (4,451)
DISTRIBUTIONS:
From Net Investment Income (6,928) (1,293) (2,134) (234)
In Excess of Net Investment Income -- -- -- (43)
-------- -------- ------- -------
TOTAL INCREASE (DECREASE) IN NET ASSETS 112,979 (46,425) 31,933 (3,076)
NET ASSETS:
Beginning of Period 211,405 257,830 54,648 57,724
-------- -------- ------- -------
End of Period $324,384 $211,405 $86,581 $54,648
======== ======== ======= =======
</TABLE>
See notes to financial statements.
23
<PAGE> 26
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
April 30, 1996 (Unaudited)
1. ORGANIZATION
The Strong International Funds consist of Strong Short-Term Global Bond
Fund, Inc., Strong International Bond Fund, Inc., Strong International Stock
Fund, Inc. and Strong Asia Pacific Fund, Inc. The Funds are separately
incorporated, non-diversified, open-end management investment companies
registered under the Investment Company Act of 1940. The Board of Directors
of the Funds approved changing the Funds' fiscal year-ends from December 31
to October 31 in 1995.
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 -- Portfolio securities traded primarily on a
principal securities exchange are valued at the last reported sales
price, or the mean between the latest bid and asked prices where no last
sales price is available. Securities traded over-the-counter are valued
at either the mean of the latest bid and asked prices or at the latest
reported sales price, depending on local convention or regulation.
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 are valued at amortized cost, which
approximates current value.
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
April 30, 1996 were as follows:
<TABLE>
<CAPTION>
Strong Short-Term Strong International Strong International Strong Asia
Global Bond Fund Bond Fund Stock Fund Pacific Fund
---------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C>
Aggregate Cost $2,921 $1,995 $8,270 $3,052
Aggregate Fair Value 2,921 1,986 8,126 3,159
Percent of Net Assets 8.4% 7.2% 2.5% 3.6%
</TABLE>
(B) Federal Income and Excise Taxes and Distributions to Shareholders --
It is the Funds' policy 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 -- Gain or loss
realized on investment transactions is 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, U.S. government securities or other liquid, high-grade
debt obligations 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.
(E) Options -- 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.
24
<PAGE> 27
- --------------------------------------------------------------------------------
April 30, 1996 (Unaudited)
(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) Additional Investment Risk -- The use of futures contracts, options,
foreign denominated assets, forward currency contracts and other similar
instruments for purposes of hedging the Funds' investment portfolios
involves, to varying degrees, elements of market risk in excess of the
amount recognized in the statement of assets and liabilities. The
predominant risk with futures contracts is an imperfect correlation
between the value of the contracts and the underlying securities.
Foreign denominated assets and forward currency contracts may involve
greater risks than domestic transactions, including currency, political
and economic, regulatory and market risks.
(I) 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 premiums and discounts.
3. NET ASSETS
Net assets as of April 30, 1996 were as follows (in thousands):
<TABLE>
<CAPTION>
Strong Short-Term Strong International Strong International Strong Asia
Global Bond Fund Bond Fund Stock Fund Pacific Fund
----------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C>
Capital Stock $33,994 $26,881 $297,991 $82,125
Undistributed Net Investment Income (Loss) 310 653 (5,814) (1,732)
Undistributed Net Realized Gain (Loss) (134) (456) 14,722 1,826
Net Unrealized Appreciation 472 382 17,485 4,362
------- ------- -------- -------
$34,642 $27,460 $324,384 $86,581
======= ======= ======== =======
</TABLE>
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of the Funds for the six months ended April 30, 1996
and the ten months ended October 31, 1995 were as follows (in thousands):
<TABLE>
<CAPTION>
1996 1995
---------------------- ----------------------
Shares Dollars Shares Dollars
------ ------- ------ -------
<S> <C> <C> <C> <C>
STRONG SHORT-TERM GLOBAL BOND FUND
Shares Sold 2,274 $ 23,958 2,106 $ 21,870
Dividends Reinvested 90 941 86 883
Shares Redeemed (1,501) (15,803) (1,724) (17,681)
------ -------- ------ ---------
863 $ 9,096 468 $ 5,072
====== ======== ====== =========
STRONG INTERNATIONAL BOND FUND
Shares Sold 1,424 $ 16,178 1,689 $ 19,496
Dividends Reinvested 64 716 71 813
Shares Redeemed (923) (10,437) (861) (9,858)
------ -------- ------ ---------
565 $ 6,457 899 $ 10,451
====== ======== ====== =========
STRONG INTERNATIONAL STOCK FUND
Shares Sold 11,870 $167,145 8,480 $107,112
Dividends Reinvested 495 6,735 100 1,258
Shares Redeemed (6,848) (95,460) (12,739) (160,737)
------ -------- ------ ---------
5,517 $ 78,420 (4,159) ($ 52,367)
====== ======== ====== =========
STRONG ASIA PACIFIC FUND
Shares Sold 8,784 $ 88,093 6,167 $ 57,648
Dividends Reinvested 212 2,074 28 264
Shares Redeemed (6,663) (67,091) (6,648) (62,363)
------ -------- ------ ---------
2,333 $ 23,076 (453) ($ 4,451)
====== ======== ====== =========
</TABLE>
25
<PAGE> 28
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
April 30, 1996 (Unaudited)
5. RELATED PARTY TRANSACTIONS
Strong Capital Management, Inc. (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 Short-Term Global Bond Fund .625%, Strong International
Bond Fund .70%, Strong International Stock Fund and Strong Asia Pacific Fund
1.00%. Advisory fees are subject to reimbursement by the Advisor if the
Funds' 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.
Certain information regarding related party transactions for the six months
ended April 30, 1996 is as follows (in thousands):
<TABLE>
<CAPTION>
Strong Short-Term Strong International Strong International Strong Asia
Global Bond Fund Bond Fund Stock Fund Pacific Fund
----------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C>
Payable to Advisor at April 30, 1996 $77 $74 $246 $74
Other Shareholder Servicing Expenses Paid to Advisor -- 1 8 3
Unaffiliated Directors' Fees -- -- 1 1
</TABLE>
6. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of long-term securities for the six months
ended April 30, 1996 were as follows (in thousands):
<TABLE>
<CAPTION>
Strong Short-Term Strong International Strong International Strong Asia
Global Bond Fund Bond Fund Stock Fund Pacific Fund
----------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C>
Purchases:
U.S. Government and Agency $ 2,517 $ 1,470 -- --
Other 24,262 32,500 $189,357 $43,239
Sales:
U.S. Government and Agency 1,009 445 -- --
Other 18,667 27,731 119,209 26,691
</TABLE>
7. INCOME TAX INFORMATION
At April 30, 1996, the investment cost and gross unrealized appreciation and
depreciation on investments for Federal income tax purposes were as follows
(in thousands):
<TABLE>
<CAPTION>
Strong Short-Term Strong International Strong International Strong Asia
Global Bond Fund Bond Fund Stock Fund Pacific Fund
----------------- ------------------- ------------------- ------------
<S> <C> <C> <C> <C>
Aggregate Investment Cost $35,102 $27,844 $306,635 $82,088
======= ======= ======== =======
Aggregate Unrealized:
Appreciation $ 429 $ 535 $30,571 $ 8,440
Depreciation (146) (224) (13,155) (3,893)
------- ------- -------- -------
$ 283 $ 311 $ 17,416 $ 4,547
======= ======= ======== =======
</TABLE>
26
<PAGE> 29
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The following presents information relating to a share of capital stock of each
of the Funds, outstanding for the entire period.
<TABLE>
<CAPTION>
Six Months Period Ended
Ended April 30 October 31
STRONG SHORT-TERM GLOBAL BOND FUND 1996(a) 1995(a) 1994(b)
-------------- ------------ -------
(Unaudited) (Note 1)
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.46 $ 10.15 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.35 0.65 0.35
Net Realized and Unrealized Gains on Investments 0.17 0.20 0.16
-------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 0.52 0.85 0.51
LESS DISTRIBUTIONS
From Net Investment Income (0.39) (0.54) (0.35)
In Excess of Net Realized Gains .-- .-- (0.01)
-------- -------- --------
TOTAL DISTRIBUTIONS (0.39) (0.54) (0.36)
-------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 10.59 $ 10.46 $ 10.15
======== ======== ========
Total Return +5.0% +8.5% +5.1%
Net Assets, End of Period (In Thousands) $ 34,642 $ 25,171 $ 19,682
Ratio of Expenses to Average Net Assets 0.0%* 0.0%* 0.0%*
Ratio of Expenses to Average Net Assets
Without Waivers and Absorptions 1.7%* 2.0%* 1.7%*
Ratio of Net Investment Income to Average Net Assets 7.3%* 8.2%* 7.7%*
Portfolio Turnover Rate 86.3% 437.3% 287.8%
</TABLE>
<TABLE>
<CAPTION>
Six Months Period Ended
Ended April 30 October 31
STRONG INTERNATIONAL BOND FUND 1996(a) 1995(a) 1994(b)
-------------- ----------- --------
(Unaudited) (Note 1)
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.48 $ 10.36 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.39 0.78 0.46
Net Realized and Unrealized Gains on Investments (0.19) 1.00 0.40
--------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 0.20 1.78 0.86
LESS DISTRIBUTIONS
From Net Investment Income (0.29) (0.66) (0.46)
In Excess of Net Investment Income -- -- (0.02)
From Net Realized Gains (0.06) -- --
In Excess of Net Realized Gains -- -- (0.02)
--------- -------- --------
TOTAL DISTRIBUTIONS (0.35) (0.66) (0.50)
--------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 11.33 $ 11.48 $ 10.36
========= ======== ========
Total Return +1.8% +17.3% +8.7%
Net Assets, End of Period (In Thousands) $ 27,460 $ 21,335 $ 9,946
Ratio of Expenses to Average Net Assets 0.0%* 0.0%* 0.0%*
Ratio of Expenses to Average Net Assets
Without Waivers and Absorptions 2.1%* 2.0%* 2.0%*
Ratio of Net Investment Income to Average Net Assets 7.4%* 8.3%* 7.9%*
Portfolio Turnover Rate 142.9% 473.3% 679.3%
</TABLE>
* Calculated on an annualized basis.
(a) Total return and portfolio turnover rate are not annualized.
(b) Inception date is March 31, 1994 for both Strong Short-Term Global
Bond Fund and Strong International Bond Fund. Total return and portfolio
turnover rate are not annualized.
27
<PAGE> 30
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
The following presents information relating to a share of capital stock of each
of the Funds, outstanding for the entire period.
<TABLE>
<CAPTION>
Six Months Period Ended
Ended April 30 October 31 Year Ended
-------------- ------------ ----------------------------------
STRONG INTERNATIONAL STOCK FUND 1996(a) 1995(a) 1994 1993 1992(b)
------ ------ ---- ---- ------
(Unaudited) (Note 1)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.03 $ 12.65 $ 14.18 $ 9.77 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.12 0.08 0.06 -- 0.05
Net Realized and Unrealized Gains (Losses) on Investments 2.17 0.37 (0.27) 4.66 (0.23)
-------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 2.29 0.45 (0.21) 4.66 (0.18)
LESS DISTRIBUTIONS
From Net Investment Income (0.40) (0.07) (0.01) -- (0.05)
In Excess of Net Investment Income -- -- -- (0.02) --
From Net Realized Gains -- -- (1.25) (0.23) --
In Excess of Net Realized Gains -- -- (0.06) -- --
-------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS (0.40) (0.07) (1.32) (0.25) (0.05)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 14.92 $ 13.03 $ 12.65 $ 14.18 $ 9.77
======== ======== ======== ======== ========
Total Return +17.9% +3.6% -1.6% +47.8% -1.8%
Net Assets, End of Period (In Thousands) $ 324,384 $211,405 $257,830 $128,445 $ 12,723
Ratio of Expenses to Average Net Assets 1.7%* 1.8%* 1.7% 1.9% 2.0%*
Ratio of Net Investment Income to Average Net Assets 0.7%* 0.8%* 0.3% (0.3%) 0.8%*
Portfolio Turnover Rate 50.7% 102.0% 136.5% 139.9% 20.8%
Average Commission Rate Paid(c) $ 0.0200
</TABLE>
<TABLE>
<CAPTION>
Six Months Period Ended
Ended April 30 October 31
------------- ------------
STRONG ASIA PACIFIC FUND 1996(a) 1995(a) 1994
------ ------ ----
(Unaudited) (Note 1)
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $9.55 $ 9.35 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.10 0.04 0.05
Net Realized and Unrealized Gains (Losses) on Investments 1.44 0.20 (0.57)
-------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 1.54 0.24 (0.52)
LESS DISTRIBUTIONS
From Net Investment Income (0.34) (0.03) (0.01)
In Excess of Net Investment Income -- (0.01) --
In Excess of Net Realized Gains -- -- (0.12)
-------- -------- --------
TOTAL DISTRIBUTIONS (0.34) (0.04) (0.13)
-------- -------- --------
NET ASSET VALUE, END OF PERIOD 10.75 $ 9.55 $ 9.35
======== ======== ========
Total Return +16.5% +2.6% -5.3%
Net Assets, End of Period (In Thousands) $ 86,581 $ 54,648 $ 57,724
Ratio of Expenses to Average Net Assets 2.0%* 2.0%* 2.0%
Ratio of Net Investment Income to Average Net Assets 0.8%* 0.5%* 0.6%
Portfolio Turnover Rate 42.8% 104.3% 103.3%
Average Commission Rate Paid(c) $ 0.0134
</TABLE>
* Calculated on an annualized basis.
(a) Total return and portfolio turnover rate are not annualized.
(b) Inception date is March 4, 1992. Total return and portfolio turnover
rate are not annualized.
(c) Disclosure required, effective for reporting periods beginning after
September 1, 1995.
28
<PAGE> 31
SHAREHOLDER PRIVLIGES*
[STRONG FUNDS
24-HOUR SERVICE LOGO]
TELEPHONE PURCHASE
Make additional investments into any Strong Fund by calling us toll-free at
1-800-368-3863.
TELEPHONE EXCHANGE
If your financial goals change, you can exchange your investments between any
of the Strong Funds.
TELEPHONE REDEMPTION
You can call toll-free to redeem your mutual fund shares at any time. Your
shares will be redeemed no later than the next business day.
[STRONG FUNDS
AUTOMATIC EXCHANGE LOGO]
AUTOMATIC INVESTMENT PLAN
This plan allows you to set up regular transfers from your bank checking or NOW
account to your Strong Funds account.
PAYROLL DIRECT DEPOSIT PLAN
You can automatically transfer all or a portion of your net pay at each pay
period. This eliminates the delay of depositing paychecks to your bank and
then sending a check through the mail to Strong Funds.
AUTOMATIC EXCHANGE PLAN
This plan allows you to exchange money from one Strong Fund to another. For
example, you may want to set up automatic exchanges from a money market fund to
an equity fund.
- --------------------------------------------------------------------------------
For more information about these privileges, call us at 1-800-368-3863.
- --------------------------------------------------------------------------------
To reduce the volume of mail you receive, only one copy of certain materials,
such as prospectuses and shareholder reports, is mailed to your household.
Please call 1-800-368-3863 if you wish to receive additional copies, free of
charge.
* Each Fund reserves the right to terminate or modify any of these privileges.
<PAGE> 32
Growth of an assumed $10,000 Investment
from 3-31-94 to 4-30-96
The Strong International Bond Fund
3-94 10,000
6-94 10,560.00
9-94 10,810.05
12-94 10,865.69
3-95 12,294.99
6-95 12,878.86
9-95 12,610.87
12-95 12,936.69
3-96 12,856.56
4-96 12,971.05
Salomon Brothers Non U.S.-World Government Bond Index (Currency Hedged)
3-94 10,000
6-94 10,169.41
9-94 10,337.42
12-94 10,396.18
3-95 11,896.72
6-95 12,478.29
9-95 12,175.77
12-95 12,428.20
3-96 12,219.25
4-96 12,194.81
Assets by Credit-Quality Rating
based on net assets as of 4-30-96
AAA 51.0%
AA 9.3%
A 3.7%
BBB 5.9%
BB 8.3%
Short-Term Investments 21.8%
<PAGE> 33
Bulk Rate
U.S. Postage
PAID
Milw, WI
Permit 4134
FOR LITERATURE AND INFORMATION REQUESTS,
CALL 1-800-368-1030.
TO DISCUSS AN EXISTING ACCOUNT OR
CONDUCT A TRANSACTION,
CALL 1-800-368-3863.
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 annual report does not constitute an offer
for the sale of securities. Strong Funds are offered for sale by prospectus
only.
[STRONG LOGO]
STRONG FUNDS DISTRIBUTORS, INC.
P.O. Box 2936
Milwaukee, Wisconsin 53201
http://www.strong-funds.com
3017E96N
