<PAGE>
THE STRONG
INTERNATIONAL [PIE CHART OF ASSET DIVERSIFICATION]
FUNDS
SEMI-ANNUAL REPORT o APRIL 30, 1997
THE STRONG SHORT-TERM GLOBAL FUND
-----------------------------------
THE STRONG INTERNATIONAL BOND FUND
-----------------------------------
THE STRONG INTERNATIONAL STOCK FUND
-----------------------------------
THE STRONG ASIA PACIFIC FUND
[STRONG LOGO]
STRONG FUNDS
<PAGE>
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.
- ---------------------------------------1----------------------------------------
HAVE A PLAN.
[PICTURE OF FOLDER LABELED INVESTMENTS]
Even a simple plan can help you take control of your financial future. Review
your plan once a year, or if your circumstances change.
- ---------------------------------------2----------------------------------------
START INVESTING AS SOON AS POSSIBLE.
[PICTURE OF CLOCK]
Make time a valuable ally. Let it put the power of compounding to work for you,
while helping to reduce your potential investment risk.
- ---------------------------------------3----------------------------------------
DIVERSIFY YOUR PORTFOLIO.
[PICTURE OF PIE CHART OF ASSET DIVERSIFICATION]
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.
- ---------------------------------------4----------------------------------------
INVEST REGULARLY.
[PICTURE OF MEMO REMINDER TO INVEST]
Investing is a process, not a one-time event. By investing regularly over the
long term, you reduce the impact of short-term market gyrations, and you attend
to your long-term plan before you're tempted to spend those assets on short-term
needs.
- ---------------------------------------5----------------------------------------
MAINTAIN A LONG-TERM PERSPECTIVE.
[PICTURE OF GRAPH SLOPING UPWARD]
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.
- ---------------------------------------6----------------------------------------
CONSIDER STOCKS TO HELP ACHIEVE MAJOR LONG-TERM GOALS.
[PICTURE OF PIE CHART OF ASSET DIVERSIFICATION EMPHASIZING STOCKS]
Over time, stocks have provided the more powerful returns needed to help the
value of your investments stay well ahead of inflation.
- ---------------------------------------7----------------------------------------
KEEP A COMFORTABLE AMOUNT OF CASH IN YOUR PORTFOLIO.
[PICTURE OF DOLLAR SIGN]
To meet current needs, including emergencies, use a money market fund or a bank
account - not your long-term investment assets.
- ---------------------------------------8----------------------------------------
KNOW WHAT YOU'RE BUYING.
[PICTURE OF MAGNIFYING GLASS]
Make sure you understand the potential risks and rewards associated with each of
your investments. Ask questions...request information...make up your own mind.
And choose a fund company that helps you make informed investment decisions.
<PAGE>
THE STRONG
INTERNATIONAL
FUNDS
SEMI-ANNUAL REPORT o APRIL 30, 1997
TABLE OF CONTENTS
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 ..............................12
The Strong International Stock Fund .............................14
The Strong Asia Pacific Fund ....................................18
Statements of Assets and Liabilities ................................21
Statements of Operations ............................................22
Statements of Changes in Net Assets .................................23
Notes to Financial Statements .......................................24
FINANCIAL HIGHLIGHTS .....................................................27
<PAGE>
THE STRONG SHORT-TERM GLOBAL BOND FUND
WE CONFRONTED TWO QUITE DIFFERENT SETS OF CONDITIONS OVER THE PAST SIX MONTHS.
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. The Fund has an average effective portfolio maturity of three years or
less.
CONTINUED OUTPERFORMANCE AGAINST OUR BENCHMARK
For the six months ended April 30, 1997, the Fund posted a total return of
3.94%. This places it well ahead of its benchmark, the Salomon Brothers 1-3 Year
World Government Bond Index (Currency Hedged), which returned 2.71% for the same
period. We also outperformed our competition as measured by the Lipper Short
World Multi-Market Income Average, which returned 1.62%.*(1)
====================================================
TOP FIVE COUNTRIES
Based on net assets as of 4-30-97
====================================================
COUNTRY % OF NET ASSETS
- ----------------------------------------------------
United States 43.0%
....................................................
Indonesia 22.4%
....................................................
New Zealand 6.1%
....................................................
Lebanon 5.6%
....................................................
Argentina 3.1%
....................................................
Please see the Schedule of Investments in Securities
for a complete listing of the Fund's portfolio.
====================================================
We confronted two quite different sets of conditions over the past six months.
In the final months of 1996 and into the first weeks of 1997, global markets
were strong overall, with the major countries consistently posting lower yields.
Low to modest inflation, coupled with weak economic growth outside the U.S.,
primarily drove the markets. The prevailing lower yields drove many
income-oriented investors to non-investment grade issues, corporate bonds, and
Asian issues, boosting those markets.
CHALLENGING CONDITIONS COME INTO PLAY
In mid to late February, however, those generally positive trends came to a
halt. First, when Federal Reserve Board Chairman Alan Greenspan gave clear
warnings that the Fed would raise interest rates, and then when the Fed actually
took that step in late March, a selloff in global bond markets ensued. Hardest
hit were the North American markets, as the impact of the rate hike was most
immediate there. Lower-quality and emerging markets also suffered, as many
investors responded to the less-certain environment by moving toward issues from
higher-quality and more established markets.
A similar flight to quality affected European markets, but for different
reasons. There, concerns that higher-yielding countries such as Spain and Italy
might not be prepared for the European Monetary Union (EMU)--as well as general
uncertainty about the start-up of the EMU--led investors to favor bonds from
established, higher-quality countries such as Germany, France, and the United
Kingdom.
Although the spring was a volatile period for global bond markets, by the end of
April the situation appeared to be settling down considerably.
ACTIVE MANAGEMENT IN AN UNEVEN MARKET
At the beginning of the Fund's fiscal year in November, its duration was neutral
relative to its benchmark index. We had overweighted positions in Australia, New
Zealand, and Canada, and had about 20% of assets in non-investment grade issues.
These positions contributed to the Fund's previous outperformance.
Given our outlook for rising interest rates in many markets, we chose to bring
our conservative interest-rate positioning back still further. In addition, we
reduced our position in Europe, as well as in the dollar-bloc countries of
Australia, New Zealand, and Canada. This was a response both to the fact that
rallies had left these markets fully valued, and to signs of rising interest
rates. We also increased the Fund's credit-quality profile by selling
long-duration emerging-markets debt, and by underweighting bonds from Italy and
other higher-yielding European markets.
================================================================================
AVERAGE ANNUAL TOTAL RETURNS(1)
As of 4-30-97
================================================================================
LIPPER SHORT SALOMON BROTHERS 1-3 YEAR
STRONG SHORT-TERM WORLD MULTI-MARKET WORLD GOVERNMENT BOND
TIME PERIOD GLOBAL BOND FUND INCOME AVERAGE* INDEX (CURRENCY HEDGED)*
- --------------------------------------------------------------------------------
1-YEAR 9.29% 6.84% 7.10%
................................................................................
3-YEAR 9.03% 4.65% 7.11%
................................................................................
SINCE INCEPTION
(on 3-31-94) 9.13% 4.48% 6.87%
................................................................................
Please note that the Lipper index contains "pure" emerging markets funds as
well as international bond funds, and includes both hedged and unhedged funds.
================================================================================
2
<PAGE>
OUTLOOK
Overall, we are quite defensive in our portfolio strategies, and even bearish in
our interest-rate outlook. For the immediate future, we intend to maintain and
even extend our conservative posture. We plan to further reduce our exposure to
non-investment grade issues, and should inflationary pressures build in the U.S.
market, we will cut our exposure to interest rate risk.
Please keep in mind that the Fund's share price and 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. These risks are intensified in emerging markets. For
long-term investors, however, we believe these risks are outweighed by the
benefits of global investing--namely, higher return potential and lower overall
portfolio risk through diversification than a pure U.S. portfolio could offer.
We appreciate your investment in the Strong Short-Term Global Bond Fund, and we
look forward to earning your continued confidence.
Sincerely,
/s/Shirish T. Malekar
Shirish T. Malekar
Portfolio Manager
[PHOTO OF SHIRISH T. MALEKAR]
================================================================================
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 3-31-94 to 4-30-97
================================================================================
[GRAPH]
Salomon Brothers 1-3 Year Lipper Short World
THE STRONG SHORT-TERM World Government Bond Multi-Market
GLOBAL BOND FUND Index (Currency Hedged)* Income Average*
3-94 10,000 10,000 10,000
12-94 10,513 10,153 9,745
12-95 11,612 11,286 10,501
12-96 12,775 12,088 11,433
4-97 13,092 12,275 11,445
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) and the
Lipper Short World Multi-Market Income Average. Results include the reinvestment
of all dividends and capital gains distributions. Performance is historical and
does not represent future results. Investment returns and principal value vary,
and you may have a gain or loss when you sell shares.
================================================================================
======================================
PORTFOLIO STATISTICS
As of 4-30-97
======================================
30-DAY ANNUALIZED YIELD(2) 7.68%
AVERAGE CREDIT QUALITY(3) A
AVERAGE MATURITY(4) 1.5 YEARS
======================================
- --------------------------------------------------------------------------------
* The Salomon Brothers 1-3 Year World Government Bond Index (Currency Hedged)
is an unmanaged index generally representative of short-term, global fixed
income government securities. The Lipper Short World Multi-Market Income
Average represents funds that invest in non-U.S. dollar and U.S. dollar
debt instruments and, by policy, keeps a dollar-weighted average maturity
of less than five years. Source of the Salomon index data is Salomon
Brothers. Source of the Lipper data is Lipper Analytical Services, Inc.
1 Average annual total return and total return measure change in the value of
an investment in the Fund, assuming reinvestment of all dividends and
capital gains. Average annual total return reflects annualized change,
while total return reflects aggregate change.
2 As of April 30, 1997, the Advisor was temporarily waiving fees of 0.295%.
Otherwise, the Fund's yield would have been 7.39% and the total return
would have been lower. Yields are historical, do not represent future
yields, and will vary.
3 For the purposes of the average, the Fund's short-term debt obligations
have been assigned a long-term rating by the Advisor.
4 The Fund's average maturity includes the effect of futures and options.
3
<PAGE>
THE STRONG INTERNATIONAL BOND FUND
IN A DIFFICULT MARKET, WE WERE ABLE TO STAY AHEAD OF OUR BENCHMARK.
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.
===================================
ASSETS BY CREDIT-QUALITY RATING
Based on net assets as of 4-30-97
===================================
[PIE CHART]
AAA 40.6%
AA 12.4%
A 2.1%
BBB 1.9%
BB 10.7%
Short-Term Investments 32.3%
Includes non-rated securities which
have been determined to be of
equivalent quality as those rated.
===================================
==========================================
TOP FIVE COUNTRIES
Based on net assets as of 4-30-97
==========================================
COUNTRY % OF NET ASSETS
- ------------------------------------------
Japan 22.5%
..........................................
Germany 15.1%
..........................................
Italy 13.1%
..........................................
France 11.1%
..........................................
New Zealand 10.4%
..........................................
Please see the Schedule of Investments in
Securities for a complete listing of the
Fund's portfolio.
==========================================
THE PAST SIX MONTHS
We confronted two quite different sets of conditions over the past six months.
In the final months of 1996 and into the first weeks of 1997, global markets
were strong overall, with the major countries consistently posting lower yields.
Low to modest inflation, coupled with weak economic growth outside the U.S.,
primarily drove the markets. The prevailing lower yields drove many
income-oriented investors to non-investment grade issues, corporate bonds, and
Asian issues, boosting those markets.
In mid to late February, however, those generally positive trends came to a
halt. First when Federal Reserve Board Chairman Alan Greenspan gave clear
warnings that the Fed would raise interest rates, and then when the Fed actually
took that step in late March, a selloff in global bond markets ensued. Hardest
hit were the North American markets, as the impact of the rate hike was most
immediate there. Lower-quality and emerging markets also suffered, as many
investors responded to the less-certain environment by moving toward issues from
higher-quality and more established markets.
A similar flight to quality affected European markets, but for different
reasons. There, concerns that higher-yielding countries such as Spain and Italy
might not be prepared for the European Monetary Union--as well as general
uncertainty about the start-up of the EMU--led investors to favor bonds from
established, higher-quality countries such as Germany, France, and the United
Kingdom.
Although the spring was a volatile period for global bond markets, by the end of
April the situation appeared to be settling down considerably. In this difficult
market, we were able to stay ahead of our benchmark, the Salomon Brothers
Non-U.S. World Government Bond Index (Currency Unhedged). For the six months
ended April 30, 1997, we posted a total return of -5.99%, while the Index
returned -7.29%.*(1)
================================================================================
AVERAGE ANNUAL TOTAL RETURNS(1)
As of 4-30-97
================================================================================
SALOMON BROTHERS NON-U.S.
STRONG INTERNATIONAL LIPPER INTERNATIONAL WORLD GOVERNMENT BOND
TIME PERIOD BOND FUND INCOME FUNDS INDEX* INDEX (CURRENCY UNHEDGED)*
- --------------------------------------------------------------------------------
1-YEAR 0.26% 5.04% -2.07%
................................................................................
3-YEAR 8.36% 7.34% 5.87%
................................................................................
SINCE INCEPTION
(on 3-31-94) 8.90% 6.87% 5.93%
................................................................................
Please note that the Lipper index contains "pure" emerging markets funds as well
as international bond funds, and includes both hedged and unhedged funds.
================================================================================
4
<PAGE>
POSITIONING FOR AN UNEVEN MARKET
At the beginning of the Fund's fiscal year in November, its duration was
slightly longer than the benchmark index's. We had overweighted positions in New
Zealand and Canada, and had about 15% of assets in non-investment grade issues.
These positions contributed to the Fund's previous outperformance.
To address changing conditions, near the beginning of 1997 we had brought the
Fund's duration in to a neutral position relative to the benchmark's. We also
sold long-duration emerging-markets debt, and underweighted bonds from Italy and
other high-yielding European markets.
In making changes to the portfolio, we followed our top-down approach to the
world's debt markets. Our investment decisions are driven by a long-term,
secular outlook -- though our research flows all the way through to invidiual
sectors and securities.
OUTLOOK
We anticipate that global bond markets will continue to present a challenging
investment environment, though one not without opportunities. For the
foreseeable future, we intend to maintain our defensive portfolio strategies as
well as our neutral exposure to interest-rate risk.
Please keep in mind that 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. These risks are intensified in emerging markets.
For long-term investors, however, we believe these risks are outweighed by the
benefits of global investing--namely, higher return potential and lower overall
portfolio risk through diversification than a pure U.S. portfolio could offer.
We appreciate your investment in the Strong International Bond Fund, and we look
forward to earning your continued confidence.
Sincerely,
/s/Shirish T. Malekar
Shirish T. Malekar
Portfolio Manager
[PHOTO OF SHIRISH T. MALEKAR]
================================================================================
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 3-31-94 to 4-30-97
================================================================================
[GRAPH]
Salomon Brothers Lipper
THE STRONG Non U.S.-World International
INTERNATIONAL Government Bond Index Income Funds
BOND FUND (Currency Unhedged)* Index*
3-94 10,000 10,000 10,000
12-94 10,866 10,396 9,387
12-95 12,937 12,428 11,700
12-96 13,966 12,938 12,783
4-97 13,005 11,943 12,272
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) and
the Lipper International Income Funds Index. Results include the reinvestment of
all dividends and capital gains distributions. Performance is historical and
does not represent future results. Investment returns and principal value vary,
and you may have a gain or loss when you sell shares.
================================================================================
=========================================
PORTFOLIO STATISTICS
As of 4-30-97
=========================================
30-DAY ANNUALIZED YIELD(2) 7.93%
AVERAGE CREDIT QUALITY(3) AA
AVERAGE MATURITY(4) 5.6 YEARS
=========================================
- --------------------------------------------------------------------------------
* The Salomon Brothers Non-U.S. World Government Bond Index (Currency
Unhedged) is an unmanaged index generally representative of liquid,
non-U.S. fixed income government securities. The Lipper International
Income Funds Index is an equally-weighted performance index of the largest
qualifying funds in this Lipper category. Source of the Salomon index data
is Micropal. Source of the Lipper index data is Lipper Analytical Services,
Inc.
1 Average annual total return and total return measure change in the value of
an investment in the Fund, assuming reinvestment of all dividends and
capital gains. Average annual total return reflects annualized change,
while total return reflects aggregate change.
2 As of April 30, 1997, the Advisor was temporarily waiving fees of 0.70% and
absorbing expenses of 0.24%. Otherwise, the Fund's yield would have been
6.99% and the total return would have been lower. Yields are historical, do
not represent future results, and will vary.
3 For purposes of this average rating, the Fund's short-term debt obligations
have been assigned a long-term rating by the Advisor.
4 The Fund's average maturity includes the effect of futures and options.
5
<PAGE>
THE STRONG INTERNATIONAL STOCK FUND
EUROPE--PARTICULARLY EASTERN EUROPE--AND LATIN AMERICA HAVE BEEN DOMINANT AMONG
WORLD MARKETS.
The Strong International Stock Fund pursues capital growth by investing
primarily in the stocks of companies based outside the United States. The Fund
provides access to growth opportunities worldwide that may offer greater return
potential than U.S. companies.
For the six months ended April 30, 1997, the Fund posted a total return of
6.30%. That result far outpaces the Morgan Stanley Europe, Australasia, and Far
East (EAFE) Index, which returned 1.57% over the same period.*(1)
==========================================
TOP FIVE COUNTRIES
Based on net assets as of 4-30-97
==========================================
COUNTRY % OF NET ASSETS
- ------------------------------------------
Japan 8.9%
.....................................
Australia 6.4%
....................................
Italy 5.3%
....................................
Singapore 4.6%
....................................
Germany 4.5%
....................................
Please see the Schedule of Investments
in Securities for a complete listing
of the Fund's portfolio.
==========================================
==========================================
FIVE LARGEST STOCK HOLDINGS
Based on net assets as of 4-30-97
==========================================
% OF
SECURITY NET ASSETS
- ------------------------------------------
Guinness Peat Group PLC 1.2%
..........................................
Volkswagen AG 1.0%
..........................................
Normandy Mining, Ltd. 0.9%
..........................................
Hong Kong Land Holdings, Ltd. 0.9%
..........................................
IFI Istituto Finanziario
Preferred 0.9%
..........................................
Please see the Schedule of Investments
in Securities for a complete listing
of the Fund's portfolio.
==========================================
SOME IMPROVEMENT IN AN UNEVEN MARKET
Over the period, international markets enjoyed slightly better performance than
they had in preceding months. There's still a lack of broad strength, though,
with most of the improvement being found in selected areas of Europe and in
emerging markets.
Europe--particularly eastern Europe--and Latin America have been dominant among
world markets. In keeping, the Fund is now active in an ever-broadening variety
of emerging markets. Russia, Egypt, and selected nations in Africa are examples
of newer markets that have worked well for the Fund over recent months.
In Europe's more mature economies, we've identified some restructuring firms
that have performed well. Phillips Electronics and Volkswagen are two notable
examples that have benefited the portfolio.
At the other end of the spectrum, much of the weakness we're encountering
remains in the Asian markets. There are, however, great disparities among the
countries in that region. There have been pockets both of strong performance,
such as Indonesia and Taiwan, and of particular weakness, as in Korea and
Thailand.
APPLYING OUR COMPANY-FOCUSED STRATEGY
To cope with this market, we continued to apply our bottom-up, stock-picking
approach. We focus primarily on the strength and potential of individual
companies when considering stocks, rather than the positive or negative
attributes of individual countries or industries. That doesn't mean that we
don't consider global economic climates in making our decisions--and in as
choppy an environment as international markets have been facing, we have been
paying somewhat more attention to them than is usually the case. The markets
have rewarded stock-pickers of late, as evidenced by our placement relative to
the Morgan Stanley EAFE Index.
By and large, our individual company choices drive the Fund's overall country
allocation; we don't peg our country weightings to any index or benchmark.
Sometimes these choices do follow a strong theme, however. For example, while in
the past we trimmed our position in Japanese stocks, we currently are building
our Japanese weighting up again. (On the whole, though, our Asian weighting is
smaller than it was before.) The size, diversity, and character of the Japanese
market give it some attractiveness, aided by a slightly stronger yen.
Nonetheless, it's still not a cheap market, and as we look for new issues for
the Fund, we usually can find better opportunities elsewhere.
FINDING PERFORMANCE OFF THE BEATEN PATH
Because the markets aren't providing us with any dramatic, macroeconomic trends
to latch onto, we're adding value by focusing our attention on fairly atypical
firms. These are companies that succeed because of their own inherent qualities,
rather than any broad economic themes. Although these firms are not necessarily
small in size, they do represent individualized niche plays.
6
<PAGE>
To allow us to identify these out-of-the-ordinary stocks, we meet with
executives from hundreds of companies in dozens of countries each year. In
addition to our own direct research, we tap into a worldwide network of contacts
that provides us with information to consider on many more stocks.
OUTLOOK
Flows of investment dollars into foreign markets have been sporadic and
selective. We anticipate, however, that more consistent investor interest in
support of foreign markets will take hold in the future. As more investors gain
experience, they are likely to be more willing--even eager--to diversify. It's
becoming ever more clear that even a strong Wall Street doesn't provide
everything an investor needs for a long-term portfolio. Further, adding
international investments to a U.S.-focused portfolio offers the potential to
increase returns and lower overall portfolio volatility. The leveling off of the
stronger dollar could also draw more money abroad, as currency risk could become
less acute.
Of course, this Fund is likely to be more volatile than a fund that invests
solely in U.S. stocks. Changes in market conditions, currency values, interest
rates, local regulations, and economic and political conditions can have quick,
sharp impact on foreign markets. Given the value currently available
internationally, however, we believe foreign equities offer long-term investors
an attractive opportunity.
Thank you for your investment in the Strong International Stock Fund. We look
forward to earning your continued confidence.
Sincerely,
/s/ Anthony L.T. Cragg
Anthony L.T. Cragg
Portfolio Manager
[PHOTO OF ANTHONY L.T. CRAGG]
================================================================================
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 3-4-92 to 4-30-97
================================================================================
[GRAPH]
THE STRONG Lipper
INTERNATIONAL MSCI International
STOCK FUND EAFE* Income Funds Index*
2-92 10,000 10,000 10,000
12-92 9,819 9,484 9,495
12-93 14,508 12,572 13,215
12-94 14,282 13,550 13,118
12-95 15,399 15,069 14,433
12-96 16,660 15,980 16,515
4-97 17,277 15,813 17,004
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
Morgan Stanley Capital International Europe, Australasia, and Far East Index
("MSCI EAFE(TM)") and the Lipper International Funds Index. Results include the
reinvestment of all dividends and capital gains distributions. Performance is
historical and does not represent future results. Investment returns and
principal value vary, and you may have a gain or loss when you sell shares. To
equalize the time periods, the indexes' performance was prorated for the month
of March 1992.
================================================================================
================================
AVERAGE ANNUAL
TOTAL RETURNS(1)
As of 4-30-97
================================
1-YEAR -1.00%
3-YEAR 5.72%
5-YEAR 11.47%
SINCE INCEPTION
(on 3-4-92) 11.18%
================================
- --------------------------------------------------------------------------------
* The MSCI EAFE(TM) is an unmanaged index generally representative of major
overseas stock markets. MSCI EAFE(TM) data is dollar-adjusted. The Lipper
International Funds Index is an equally-weighted performance index of the
largest qualifying funds in this Lipper category. Source of the MSCI index
data is Micropal. Source of the Lipper index data is Lipper Analytical
Services, Inc.
1 Average annual total return and total return measure change in the value of
an investment in the Fund, assuming reinvestment of all dividends and
capital gains. Average annual total return reflects annualized change,
while total return reflects aggregate change.
7
<PAGE>
THE STRONG ASIA PACIFIC FUND
THE MARKETS IN THIS REGION HAVE FOR THE MOST PART SLOWED DOWN, BUT IN THE
PROCESS THEY HAVE MATURED CONSIDERABLY.
The Strong Asia Pacific Fund seeks capital growth. The Fund invests primarily in
the equity securities of issuers located in Asia or the Pacific Basin.
For the first half of the Fund's fiscal year--the six months ended April 30,
1997--turbulent markets in the Asia/Pacific region led us to adopt a relatively
defensive stance. The Fund's total return for the six months was -0.65%.
Although that small loss puts it somewhat behind the Morgan Stanley Asia Pacific
Index's return of 0.72%, it's ahead of the average return for our peer group of
funds, as measured by the Lipper Pacific Region Funds Index, which registered a
return of -2.62%.*(1)
====================================
TOP FIVE COUNTRIES
Based on net assets as of 4-30-97
====================================
COUNTRY % OF NET ASSETS
- ------------------------------------
Australia 14.2%
....................................
Japan 12.2%
....................................
New Zealand 10.2%
....................................
Singapore 8.8%
....................................
Indonesia 5.6%
....................................
Please see the Schedule of Investments
in Securities for a complete listing
of the Fund's portfolio.
=====================================
=====================================
FIVE LARGEST STOCK HOLDINGS
Based on net assets as of 4-30-97
=====================================
SECURITY % OF NET ASSETS
- -------------------------------------
Guinness Peat Group PLC 2.0%
.....................................
Sydney Aquarium, Ltd. 1.8%
.....................................
Hong Kong Land Holdings, Ltd. 1.4%
.....................................
Normandy Mining, Ltd. 1.4%
.....................................
Novus Petroleum, Ltd. 1.4%
.....................................
Please see the Schedule of Investments
in Securities for a complete listing
of the Fund's portfolio.
=====================================
LOOKING FOR POSITIVES IN A DIFFICULT MARKET
The turbulence that marked the Asia Pacific market for most of the second half
of the Fund's previous fiscal year--the months from June through October
1996--has continued into this year. Political worries in certain markets have
precipitated some of the losses. Others were attributable to a continued cooling
off of earnings and exports throughout the region.
The markets in this region have for the most part slowed down, but in the
process they have matured considerably. In the short term, this cooling off of
past exuberance is somewhat painful, but in the long term it should prove more
comfortable as growth settles into sustainable levels.
Although we and others often talk about the region as a whole, the fact is that
Asia won't all move together. Despite the region's overall weakness, there have
been pockets of good performance, such as Indonesia and Taiwan. On the other
hand, there are markets such as those in Korea and Thailand that have proved
particularly dismal, although we feel Korea may be due for some recovery.
APPLYING OUR COMPANY-FOCUSED STRATEGY
In managing the Fund, we generally apply a bottom-up strategy--that is, we focus
primarily on the strength and potential of individual companies when considering
stocks, rather than the positive or negative attributes of individual countries
or industries. That doesn't mean that we don't consider global economic climates
in making our decisions--and in as difficult an environment as the region has
been facing, we have been paying somewhat more attention to them than is usually
the case. Nonetheless, we remain willing to look for financially sound,
well-managed companies in areas others might bypass. Such companies can operate
below the parapet--that is, their strength can allow them to avoid the effects
of problems at the national level.
By and large, individual company choices drive the Fund's overall country
allocation; we don't peg our country weightings to any index or benchmark.
Sometimes these choices do follow a strong theme, however. For example, in the
past we trimmed our position in Japanese stocks, but we currently are building
our Japanese weighting up again. The size, diversity, and character of the
Japanese market give it some attractiveness, aided by a slightly stronger yen.
Nonetheless, it's still not a cheap market, and as we look for new issues for
the Fund, we usually can find better opportunities elsewhere.
To allow us to make appropriate stock purchases for the Fund, we meet with
executives from hundreds of companies in dozens of countries each year. In
addition to our own direct research, we tap into a worldwide network of contacts
that provides us with information to consider on many more stocks.
8
<PAGE>
OUTLOOK
Although Asian markets have not been entirely favorable for the past several
months, we believe there is reason for a positive outlook. Growth in several of
these markets remains quite strong, and stock valuations have descended to what
are in many cases very attractive levels. That gives us the opportunity to buy
good-quality companies at low prices.
That said, it's reasonable to expect the Asia Pacific market to be rather
volatile for the foreseeable future. Flows of investment dollars into and out of
the region tend to be very extreme--with all rushing in, then back out, in
droves. Given the nature of international investing in general, and
emerging-markets investing in particular, that scenario is not likely to change
in the short term. In following that all-in, all-out pattern, the financial
markets have overreacted to problems in Asia. We believe these problems are more
in the nature of a bad flu, not a terminal illness, and that the markets are due
to catch up with reality in the not-too-distant future.
Of course, because of the markets this Fund invests in, it is likely to be more
volatile than a purely domestic investment. Changes in market conditions,
currency values, interest rates, and economic and political changes in the U.S.
and abroad can greatly affect this Fund's share price. The Fund's concentration
in a single geographic area, along with its investment in less-developed
markets, also magnify its risk. Given the current value and growth potential in
international markets, however, we believe foreign stocks offer long-term
investors a substantial opportunity.
Thank you for your investment in the Strong Asia Pacific Fund. We look forward
to earning your continued confidence.
Sincerely,
/s/ Anthony L.T. Cragg
Anthony L.T. Cragg
Portfolio Manager
[PHOTO OF ANTHONY L.T. CRAGG]
================================================================================
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 12-31-93 to 4-30-97
================================================================================
[GRAPH]
THE STRONG Lipper Pacific
ASIA PACIFIC FUND MSCI AP* Region Funds Index*
12-93 10,000 10,000 10,000
12-94 9,473 8,772 9,475
12-95 10,035 9,305 9,729
12-96 10,246 10,388 9,980
4-97 10,021 10,040 9,566
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
Morgan Stanley Capital International AC Asia Pacific Free ex-Japan Index ("MSCI
AP") and the Lipper Pacific Region Funds Index . Results include the
reinvestment of all dividends and capital gains distributions. Performance is
historical and does not represent future results. Investment returns and
principal value vary, and you may have a gain or loss when you sell shares.
================================================================================
=================================
AVERAGE ANNUAL
TOTAL RETURNS(1)
As of 4-30-97
=================================
1-YEAR -11.50%
3-YEAR 0.64%
SINCE INCEPTION
(on 12-31-93) 0.06%
=================================
- --------------------------------------------------------------------------------
* The MSCI AP Index is an unmanaged index generally representative of
developed and emerging markets in the Asia/Pacific region, excluding Japan.
MSCI AP data is dollar-adjusted. The Lipper Pacific Region Funds Index is
an equally-weighted performance index of the largest qualifying funds in
this Lipper category. Source of the MSCI index data is Bloomberg. Source of
the Lipper index data is Lipper Analytical Services, Inc.
1 Average annual total return and total return measure change in the value of
an investment in the Fund, assuming reinvestment of all dividends and
capital gains. Average annual total return reflects annualized change,
while total return reflects aggregate change.
9
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
STRONG SHORT-TERM GLOBAL BOND FUND
SHARES OR VALUE
PRINCIPAL (NOTE 2)
AMOUNT (In Thousands)
- --------------------------------------------------------------------------------
CORPORATE BONDS 9.0%
INDONESIA 6.2%
APP International Finance Floating Rate
Notes, 8.125%, Due 6/25/99 500 USD $ 489
Polysindo EKA Perkasa PT, Zero %,
Due 7/14/98 5,000 USD 4,475
-------
4,964
MEXICO 0.7%
Imexsa Export Trust Senior Structured
Pass-Thru Certificates, Series 1996-1,
10.125%, Due 5/31/03 (Acquired 5/22/96;
Cost $500) (d) 500 USD 518
NETHERLANDS 0.8%
Deutsche Finance BV Bank Guaranteed Senior
Notes, Zero %, Due 5/27/27 (Acquired
4/02/97; Cost $665) (d) 100,000 ZAR 663
UNITED STATES 1.3%
Bank of Boston Corporation Subordinated
Floating Rate Notes, 5.625%, Due 2/28/01 $100 100
Harrahs Operating, Inc. Guaranteed Senior
Subordinated Notes, 10.875%, Due 4/15/02 500 526
Viacom International, Inc. Reset Notes, 8.75%,
Due 5/15/01 (Rate Reset Effective 5/15/98) 450 460
-------
1,086
-------
TOTAL CORPORATE BONDS (COST $7,214) 7,231
GOVERNMENT & AGENCY ISSUES 25.1%
ARGENTINA 2.9%
Republic of Argentina BOCON Previsional 4
Floating Rate Notes, 5.625%, Due 9/01/02 1,857 USD 1,719
Republic of Argentina Bote 10 Floating Rate
Notes, 5.625%, Due 4/01/00 549 USD 629
-------
2,348
AUSTRALIA 2.6%
Australian Government Bonds, 12.00%,
Due 7/15/99 2,400 AUD 2,082
BRAZIL 1.0%
Republic of Brazil IDU Debentures, 8.75%,
Due 1/01/01 870 USD 854
DENMARK 0.6%
Kingdom of Denmark Notes, 9.00%, Due 11/15/00 3,000 DKK 515
FINLAND 2.0%
Government of Finland Bonds, 10.00%,
Due 9/15/01 7,000 FIM 1,610
FRANCE 1.5%
Government of France Debentures:
7.00%, Due 10/12/00 2,900 FRF 540
8.50%, Due 11/25/02 3,000 FRF 602
-------
1,142
GERMANY 1.2%
Republic of Germany Debentures, Series 90,
8.875%, Due 12/20/00 1,500 DEM 996
IRELAND 1.2%
Government of Ireland Debentures, 9.25%,
Due 7/11/03 570 IEP 986
ITALY 0.9%
Government of Italy Debentures, 12.00%,
Due 1/01/02 1,000,000 ITL 693
NEW ZEALAND 6.1%
Government of New Zealand Notes, 8.00%,
Due 7/15/98 7,100 NZD 4,953
PANAMA 2.1%
Republic of Panama Floating Rate Notes,
6.5469%, Due 5/14/02 1,692 USD 1,675
SWEDEN 0.7%
Government of Sweden Debentures, 13.00%,
Due 6/15/01 3,500 SEK 557
UNITED KINGDOM 0.5%
Government of United Kingdom Treasury Notes,
7.25%, Due 3/30/98 250 GBP 408
UNITED STATES 1.8%
FNMA Guaranteed Real Estate Mortgage
Investment Conduit Adjustable Rate Mortgage
Certificates, Pool #365418, 7.285%,
Due 1/01/23 $ 796 824
FNMA Guaranteed Real Estate Mortgage
Investment Conduit Pass-Thru Certificates,
10.50%, Due 8/01/20 572 629
-------
1,453
-------
TOTAL GOVERNMENT & AGENCY ISSUES
(COST $20,590) 20,272
NON-AGENCY MORTGAGE & ASSET-BACKED
SECURITIES 28.1%
Citicorp Mortgage Securities, Inc. Real Estate
Mortgage Investment Conduit Pass-Thru
Certificates:
Series 1988-3, Class A-2, 9.00%, Due 4/01/18 434 438
Series 1990-17, Class M, 9.50%, Due 11/25/20 312 317
Series 1993-3, Class B1, 7.00%, Due 3/25/08
(Acquired 10/23/96; Cost $962) (d) 976 953
Collateralized Mortgage Obligation Trust, Series 14,
Class Z, 8.00%, Due 1/01/17 933 938
DLJ Mortgage Acceptance Corporation Variable
Rate Mortgage Pass-Thru Certificates:
Series 1990-2, Class A, 7.4364%, Due 1/25/22 1,835 1,868
Series 1991-3, Class A1, 7.3976%, Due 2/20/21 1,880 1,906
Series 92-Q4, Class A-2, 7.1039%, Due 7/25/22 975 985
First Boston Mortgage Securities Corporation
Variable Rate Mortgage Pass-Thru Certificates,
Series 1994-MHC1, Class C, 6.725%, Due 4/25/11 500 502
GE Capital Mortgage Services, Inc. Real Estate
Mortgage Investment Conduit MC Pass-Thru
Certificates, Series 1994-11, Class A3, 5.90%,
Due 3/25/24 223 223
Kmart CMBS Financing, Inc. Floating Rate
Commercial Mortgage Pass-Thru Certificates,
Series 1997-1, Class D, 6.7875%, Due 3/01/07
(Acquired 2/21/97; Cost $2,000) (d) 2,000 2,006
Merrill Lynch Home Equity Acceptance, Inc.
Subordinated Variable Rate Mortgage-Backed
Certificates, Series 1994-A, Class A-1, 6.50%,
Due 8/17/23 62 62
Mortgage Obligation Structured Trust Pass-Thru
Certificates, Series 1993-1, Class A-1, 6.35%,
Due 10/25/18 219 218
RTC Variable Rate Mortgage Pass-Thru
Securities, Inc.:
Series 1992-6, Class A-3, 7.6871%, Due 1/25/26 1,307 1,330
Series 1992-6, Class B-9, 6.5475%, Due 11/25/26 571 573
Series 1992-15, Class B-7, 6.705%, Due 7/25/27 1,743 1,755
Series 1992-16, Class A-4, 7.5569%, Due 8/25/22 31 31
See notes to financial statements.
10
<PAGE>
- --------------------------------------------------------------------------------
STRONG SHORT-TERM GLOBAL BOND FUND (continued)
SHARES OR VALUE
PRINCIPAL (NOTE 2)
AMOUNT (In Thousands)
- --------------------------------------------------------------------------------
Series 1992-16, Class B-3, 10.6454%,
Due 5/25/24 $1,500 $ 1,566
Series 1995-1, Class B-5, 6.8440%, Due 10/25/28 408 410
Ryland Mortgage Securities Corporation Senior
Mortgage Partnership Variable Rate Securities,
89-1, Class 1A, Perpetual Savings Bank, 7.7672%,
Due 2/25/19 971 965
Ryland Mortgage Securities Corporation Variable
Rate Mortgage Participation Securities:
Series 1990-C1, Class A, 6.2225%, Due 10/25/20 991 982
Series 1991-1, 7.3307%, Due 3/25/20 1,146 1,161
Series 1992-3, Class A-2, 7.4258%, Due 6/25/20 1,033 1,040
Southern Pacific Thrift & Loan Association
Commercial Mortgage Variable Rate Pass-Thru
Certificates, Series 1996-C1, Class C, 6.6875%,
Due 4/25/28 (Acquired 9/26/96; Cost $1,463) (d) 1,500 1,506
Structured Asset Securities Corporation Variable
Rate Multiclass Pass-Thru Certificates,
Series 1996-C1, Class D, 6.6875%, Due 10/25/10
(Acquired 9/27/96; Cost $995) (d) 1,000 1,000
-------
TOTAL NON-AGENCY MORTGAGE & ASSET-BACKED
SECURITIES (COST $22,648) 22,735
OPTIONS 0.0%
GERMANY
Merrill Lynch Deutsche-Mark Currency Options
(Strike price is equal to the daily exchange rate,
currently 1.7307. Expiration date is 7/14/97.)
(COST $30) 8 DEM 10
PREFERRED STOCKS 2.6%
AUSTRALIA 0.9%
National Australia Bank Convertible 7.875% 27,000 716
UNITED STATES 1.7%
First International Funding Company 3.50%
(Acquired 9/10/96; Cost $1,403) (d) 140 1,396
-------
TOTAL PREFERRED STOCKS (COST $2,078) 2,112
SHORT-TERM INVESTMENTS (a) 41.7%
COMMERCIAL PAPER 16.3%
DISCOUNTED 16.2%
INDONESIA
Asia Pulp & Paper Company, Ltd.:
Due 8/18/97 (Acquired 4/16/97;
Cost $1,235) (d) 3,000,000 IDR 1,188
Due 12/08/97 6,000,000 IDR 2,256
Due 3/19/98 6,000,000 IDR 2,169
Polysindo EKA Perkasa PT:
Due 7/08/97 5,000,000 IDR 1,992
Due 3/18/98 7,000,000 IDR 2,514
Texmaco Jaya PT, Due 5/05/97 3,000 USD 3,000
-------
13,119
INTEREST BEARING, DUE UPON DEMAND 0.1%
United States Cayman Eurodollar Call Deposit,
4.50% $80 80
-------
Total Commercial Paper 13,199
CORPORATE BONDS 2.1%
BRAZIL 0.8%
Petroleo Brasileiro SA Eurodollar, Zero %,
Due 5/23/97 600 USD 597
MEXICO 0.6%
Banco Nacional Comerciio de Exterior Floating Rate
Notes, 10.6289%, Due 6/23/97 (Acquired 6/15/95;
Cost $500) (d) 500 USD 503
THAILAND 0.7%
Krungthai Thanakit PCL, Zero %, Due 5/21/97 15,000 THB 572
-------
Total Corporate Bonds 1,672
GOVERNMENT & AGENCY ISSUES 1.6%
ARGENTINA 0.2%
Republic of Argentina Bote 2, 5.4375%,
Due 9/01/97 199 USD 197
RUSSIA 1.2%
Russia Sovereign Risk Notes, Zero %,
Due 6/18/97 1,000 USD 980
UNITED STATES 0.2%
United States Treasury Bills, Due 5/08/97 (c) $150 150
-------
Total Government & Agency Issues 1,327
TIME DEPOSITS 21.7%
CHILE 1.9%
Citibank Time Deposit (with Chilean Peso
indexation and interest based on the
Chilean denominated deposit), 11.55%,
Due 11/12/97 1,500 USD 1,501
EGYPT 1.3%
Citibank Time Deposit (with Egyptian Pound
indexation and interest based on the
Egyptian denominated deposit), 9.20%,
Due 7/21/97 1,020 USD 1,024
LEBANON 5.6%
Lebanese T-Bill Pass-Thru Notes:
Zero %, Due 5/01/97 (Acquired 11/01/96;
Cost $1,858) (d) 2,000 USD 2,017
Zero %, Due 10/30/97 2,644 USD 2,487
-------
4,504
UNITED STATES 12.9%
Bank of Tokyo, Ltd. Time Deposit, 5.6875%,
Due 5/01/97 $4,000 4,000
Canadian Imperial Bank Time Deposit, 5.625%,
Due 5/01/97 2,500 2,500
Deutsche Bank Time Deposit, 5.65%, Due 5/01/97 4,000 4,000
-------
10,500
-------
Total Time Deposits 17,529
-------
TOTAL SHORT-TERM INVESTMENTS (COST $34,041) 33,727
-------
TOTAL INVESTMENTS IN SECURITIES
(COST $86,601) 106.5% 86,087
Other Assets & Liabilities, Net (6.5%) (5,292)
-------
NET ASSETS 100.0% $80,795
=======
FUTURES
- -------
UNDERLYING UNREALIZED
AMOUNT APPRECIATION
EXPIRATION AT VALUE (DEPRECIATION)
DATE (In Thousands) (In Thousands)
- --------------------------------------------------------------------------------
Purchased:
4 Ten-Year French Government
Bonds 6/97 $ 443 $ 4
10 Ten-Year German Government
Bonds 6/97 1,464 (22)
10 Ten-Year Italian Government
Bonds 6/97 1,486 2
40 Five-Year U.S. Treasury Notes 6/97 4,211 --
3 Ten-Year U.S. Treasury Notes 6/97 321 (1)
Sold:
6 Ten-Year Australian Government
Bonds 6/97 (598) 3
3 Ten-Year United Kingdom
Government Bonds 6/97 (268) 5
7 Thirty-Year U.S. Treasury Bonds 6/97 (765) (3)
See notes to financial statements.
11
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
STRONG SHORT-TERM GLOBAL BOND FUND (continued)
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
- -------------------------------------------
UNREALIZED
VALUE APPRECIATION
SETTLEMENT IN USD (DEPRECIATION)
DATE (In Thousands)(In Thousands)
- --------------------------------------------------------------------------------
Purchased:
40,000 CAD 9/15/97 $ 29 ($ 1)
Sold:
6,680,000 AUD 8/12/97 (5,213) (163)
3,550,000 DEM 5/13/97 (2,053) 342
1,217,100 DEM 7/14/97 (707) 43
3,300,000 DKK 8/13/97 (504) (2)
8,600,000 FIM 8/12/97 (1,669) 10
6,500,000 FRF 10/16/97 (1,127) 108
850,000 GBP 8/11/97 (1,377) 5
5,000,000,000 IDR 7/09/97 (2,034) (53)
3,000,000,000 IDR 8/19/97 (1,212) 10
6,000,000,000 IDR 12/09/97 (2,379) (5)
7,000,000,000 IDR 3/19/98 (2,730) 26
6,000,000,000 IDR 3/20/98 (2,340) 22
3,100,000 NZD 8/12/97 (2,141) (8)
4,500,000 SEK 7/15/97 (576) 78
15,000,000 THB 5/21/97 (574) 4
PERCENTAGE OF
INDUSTRY DIVERSIFICATION NET ASSETS
- --------------------------------------------------------------------------------
Foreign Government .................................. 36.5%
Non-Agency Single-Family ............................ 15.4
Foreign Corporate ................................... 14.8
Bank - Regional ..................................... 8.1
Paper & Forest Products ............................. 7.6
Yankee Corporate .................................... 5.0
U.S. Government ..................................... 4.8
Non-Agency Commercial ............................... 3.7
Finance - Miscellaneous ............................. 2.6
Bank - Money Center ................................. 1.6
Non-Agency Asset-Backed ............................. 1.5
FNMA ................................................ 1.0
Bank - Super Regional ............................... 0.7
Leisure Service ..................................... 0.7
Oil - International Integrated ...................... 0.7
Media - Radio/TV .................................... 0.6
Non-Agency Manufactured Housing ..................... 0.6
Steel ............................................... 0.6
Other Assets and Liabilities, Net ................... (6.5)
-------
Total 100.0%
=======
- --------------------------------------------------------------------------------
STRONG INTERNATIONAL BOND FUND
SHARES OR VALUE
PRINCIPAL (NOTE 2)
AMOUNT (In Thousands)
- --------------------------------------------------------------------------------
CORPORATE BONDS 7.7%
INDONESIA 5.8%
Polysindo EKA Perkasa PT, Zero %, Due 7/14/98 2,000 USD $ 1,790
MEXICO 1.7%
Imexsa Export Trust Senior Structured Pass-Thru
Certificates, Series 1996-1, 10.125%,
Due 5/31/03(Acquired 5/22/96; Cost $500)(d) 500 USD 517
UNITED STATES 0.2%
Bank of Boston Corporation Subordinated
Floating Rate Notes, 5.625%, Due 2/28/01 $50 50
-------
TOTAL CORPORATE BONDS (COST $2,340) 2,357
GOVERNMENT & AGENCY ISSUES 39.8%
ARGENTINA 3.3%
Republic of Argentina BOCON Previsional 4
Floating Rate Notes, 5.625%, Due 9/01/02 928 USD 860
Republic of Argentina Bote 10 Floating Rate
Notes, 5.625%, Due 4/01/00 110 USD 126
-------
986
AUSTRALIA 6.2%
Australian Government Bonds, 12.00%,
Due 7/15/99 2,200 AUD 1,909
DENMARK 3.3%
Kingdom of Denmark Notes:
7.00%, Due 11/15/07 4,250 DKK 658
9.00%, Due 11/15/00 2,000 DKK 343
-------
1,001
FINLAND 2.2%
Government of Finland Bonds, 10.00%,
Due 9/15/01 3,000 FIM 690
FRANCE 3.9%
Government of France Debentures, 8.50%,
Due 11/25/02 6,000 FRF 1,204
GERMANY 8.4%
Republic of Germany Debentures, Series 94,
7.50%, Due 11/11/04 4,000 DEM 2,588
IRELAND 2.1%
Government of Ireland Debentures, 9.25%,
Due 7/11/03 380 IEP 658
NEW ZEALAND 10.4%
Government of New Zealand Notes, 8.00%,
Due 7/15/98 4,600 NZD 3,209
-------
TOTAL GOVERNMENT & AGENCY ISSUES
(COST $12,820) 12,245
NON-AGENCY MORTGAGE & ASSET-BACKED
SECURITIES 18.2%
Citicorp Mortgage Securities, Inc. Real Estate
Mortgage Investment Conduit Pass-Thru
Certificates:
Series 1990-17, Class M, 9.50%, Due 11/25/20 $ 312 316
Series 1993-3, Class B1, 7.00%, Due 3/25/08
(Acquired 10/23/96; Cost $481)(d) 488 477
DLJ Mortgage Acceptance Corporation Variable
Rate Mortgage Pass-Thru Certificates:
Series 1990-2, Class A, 7.4364%, Due 1/25/22 459 467
Series 1991-3, Class A1, 7.3976%, Due 2/20/21 940 953
The Equitable Life Assurance Society of the
United States Collateralized Floating Rate
Notes, Series D-2, 6.7375%, Due 5/15/03
(Acquired 8/08/96; Cost $502)(d) 500 498
First Boston Mortgage Securities Corporation
Mortgage Pass-Thru Certificates, Series 1992-4,
Class A-5, Interest Only, 0.625%, Due 10/25/22 27,949 288
GE Capital Mortgage Services, Inc. Real Estate
Mortgage Investment Conduit MC Pass-Thru
Certificates, Series 1994-11, Class A3, 5.90%,
Due 3/25/24 223 223
Merrill Lynch Home Equity Acceptance, Inc.
Subordinated Variable Rate Mortgage-Backed
Certificates, Series 1994-A, Class A-1, 6.50%,
Due 8/17/23 93 92
RTC Variable Rate Mortgage Pass-Thru
Securities, Inc.:
Series 1992-16, Class B-3, 10.6454%, Due 5/25/24 500 522
Series 1995-1, Class B-5, 6.844%, Due 10/25/28 844 847
See notes to financial statements.
12
<PAGE>
- --------------------------------------------------------------------------------
STRONG INTERNATIONAL BOND FUND (continued)
SHARES OR VALUE
PRINCIPAL (NOTE 2)
AMOUNT (In Thousands)
- --------------------------------------------------------------------------------
Ryland Mortgage Securities Corporation Variable
Rate Mortgage Participation Securities, Series
1991-1, 7.3307%, Due 3/25/20 $911 $ 924
-------
TOTAL NON-AGENCY MORTGAGE & ASSET-BACKED
SECURITIES (COST $5,270) 5,607
OPTIONS 0.0%
GERMANY
Merrill Lynch Deutsche-Mark Currency Options
(Strike price is equal to the daily exchange rate,
currently 1.7307. Expiration date is 7/14/97.)
(COST $10) 3 DEM 3
PREFERRED STOCKS 1.9%
First International Funding Company 3.50%
(Acquired 9/10/96; COST $601)(d) 60 598
SHORT-TERM INVESTMENTS (a) 38.6%
COMMERCIAL PAPER 16.6%
DISCOUNTED 16.4%
INDONESIA
Asia Pulp & Paper Company, Ltd.:
Due 12/08/97 4,000,000 IDR 1,504
Due 3/19/98 3,000,000 IDR 1,084
Polysindo EKA Perkasa PT, Due 3/18/98 4,000,000 IDR 1,437
Texmaco Jaya PT, Due 5/05/97 1,000 USD 1,000
-------
5,025
INTEREST BEARING, DUE UPON DEMAND 0.2%
United States Cayman Eurodollar Call
Deposit, 4.50% $69 69
-------
Total Commercial Paper 5,094
CORPORATE BONDS 0.6%
CANADA
Mobil Oil of Canada Corporation Senior
Unsubordinated Notes, 9.00%, Due 5/02/97 250 CAD 179
GOVERNMENT & AGENCY ISSUES 3.6%
ARGENTINA 0.6%
Republic of Argentina Bote 2, 5.4375%,
Due 9/01/97 200 USD 198
RUSSIA 1.6%
Russia Sovereign Risk Notes, Zero %,
Due 6/18/97 500 USD 490
UNITED STATES 1.4%
United States Treasury Bills, Due 5/08/97 (c) $425 425
-------
Total Government & Agency Issues 1,113
TIME DEPOSITS 17.8%
CHILE 1.6%
Citibank Time Deposit (with Chilean Peso
indexation and interest based on the Chilean
denominated deposit), 11.55%, Due 11/12/97 500 USD 500
EGYPT 1.7%
Citibank Time Deposit (with Egyptian Pound
indexation and interest based on the
Egyptian denominated deposit),
9.20%, Due 7/21/97 510 USD 512
LEBANON 6.4%
Lebanese T-Bill Pass-Thru Notes:
Zero %, Due 5/01/97 (Acquired 11/01/96;
Cost $929) (d) 1,000 USD 1,009
Zero %, Due 10/30/97 1,000 USD 941
-------
1,950
UNITED STATES 8.1%
Bank of Tokyo, Ltd. Time Deposit, 5.6875%,
Due 5/01/97 $1,500 1,500
Canadian Imperial Bank Time Deposit, 5.625%,
Due 5/01/97 1,000 1,000
-------
2,500
-------
Total Time Deposits 5,462
-------
TOTAL SHORT-TERM INVESTMENTS (COST $11,952) 11,848
-------
TOTAL INVESTMENTS IN SECURITIES
(COST $32,993) 106.2% 32,658
Other Assets & Liabilities, Net (6.2%) (1,909)
-------
NET ASSETS 100.0% $30,749
=======
FUTURES
- -------
UNDERLYING UNREALIZED
AMOUNT APPRECIATION
EXPIRATION AT VALUE (DEPRECIATION)
DATE (In Thousands) (In Thousands)
- --------------------------------------------------------------------------------
Purchased:
4 Ten-Year Australian Government
Bonds 6/97 $ 398 ($ 2)
20 Ten-Year French Government
Bonds 6/97 2,216 (6)
14 Ten-Year German Government
Bonds 6/97 2,049 (24)
27 Ten-Year Italian Government
Bonds 6/97 4,013 15
7 Ten-Year Japanese Government
Bonds 6/97 6,923 32
17 Ten-Year United Kingdom
Government Bonds 6/97 1,521 (34)
10 Five-Year U.S. Treasury Notes 6/97 1,054 (1)
Sold:
20 Ten-Year U.S. Treasury Notes 6/97 (2,139) 5
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
- -------------------------------------------
UNREALIZED
VALUE APPRECIATION
SETTLEMENT IN USD (DEPRECIATION)
DATE (In Thousands) (In Thousands)
- ----------------------------------------------------------------------
Purchased:
1,152,000 CAD 9/15/97 $ 832 ($ 22)
24,323,979 DEM 8/13/97 14,163 (535)
1,123,317,000 JPY 8/11/97 8,981 (97)
Sold:
4,700,000 AUD 8/12/97 (3,668) (115)
405,700 DEM 7/14/97 (236) 14
3,700,000 DKK 8/13/97 (565) (2)
200,000,000 ESP 6/30/97 1,371 (151)
6,750,000 FRF 8/13/97 (1,165) 8
4,000,000,000 IDR 12/09/97 (1,586) (3)
4,000,000,000 IDR 3/19/98 (1,560) 15
3,000,000,000 IDR 3/20/98 (1,170) 11
PERCENTAGE OF
INDUSTRY DIVERSIFICATION NET ASSETS
- ----------------------------------------------------------------------
Foreign Government .................................. 93.0%
Yankee Corporate .................................... 4.9%
Paper & Forest Products ............................. 3.5%
Bank - Regional ..................................... 3.3%
Non-Agency Asset-Backed ............................. 0.9%
Oil - North American Integrated ..................... 0.6%
Other Assets and Liabilities, Net ................... (6.2%)
------
Total 100.0%
======
See notes to financial statements.
13
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
STRONG INTERNATIONAL STOCK FUND
SHARES OR VALUE
PRINCIPAL (NOTE 2)
AMOUNT (In Thousands)
- --------------------------------------------------------------------------------
COMMON STOCKS 85.4%
ARGENTINA 1.6%
Dragados y Construcciones Argentina 247,000 $ 939
Quilmes Industrial SA ADR 104,000 1,157
Sunshine Mining and Refining Company (b) 800,000 700
YPF Sociedad Anonima ADR 70,000 1,934
--------
4,730
AUSTRALIA 5.8%
AAPC, Ltd. 2,103,853 1,281
Cinema Plus, Ltd. (b) 1,297,000 1,003
Coca-Cola Amatil, Ltd. 110,000 1,259
David Jones, Ltd. 700,000 918
FAI Insurance, Ltd. 1,760,762 866
Leighton Holdings, Ltd. 214,000 962
Normandy Mining, Ltd. 2,168,543 2,658
Novus Petroleum, Ltd. 514,864 1,608
Oil Search, Ltd. 14,700 35
Orogen Minerals, Ltd. GDR (Acquired 10/31/96;
Cost $420) (d) 26,500 616
Publishing & Broadcasting, Ltd. 220,000 1,163
Sydney Aquarium, Ltd. 637,100 1,890
Sydney Harbour Casino Holdings, Ltd. (b) 540,000 911
Tourism Holdings, Ltd. 153,000 247
Western Mining Corporation, Ltd. 209,439 1,243
--------
16,660
AUSTRIA 0.7%
Flughafen Wien AG 24,600 1,020
Wolford AG 8,800 907
--------
1,927
BANGLADESH 0.0%
Bangladesh Fund 20,000 125
BELGIUM 0.3%
Audiofina 20,000 879
BOTSWANA 0.3%
Sechaba Investment Trust Company, Ltd. 1,090,000 961
BRAZIL 2.4%
Centrais Electricas Brasileiras SA 2,450,000 1,104
Companhia De Electricidade do Estado do
Rio De Janeiro 850,000,000 536
Companhia Saneamento Basico Estado 5,300,000 1,047
Companhia Vale do Rio Doce Sponsored ADR 35,000 895
Light Servicos de Electricidade SA 1,200,000 498
Telecommunicacoes Brasileiras SA Sponsored ADR 6,500 746
Usinas Siderurgicas de Minas Gerais
Sponsored ADR 184,000 2,162
--------
6,988
CHILE 1.6%
Embotelladora Andina SA ADR A 43,000 860
Embotelladora Andina SA ADR B 43,000 844
Five Arrows Chile Investment Trust, Ltd. 381,000 1,227
Quimica y Minera Chile SA Sponsored ADR 26,200 1,552
Santa Isabel SA Sponsored ADR 10,000 244
--------
4,727
CHINA 1.2%
Inner Mongolia Erdos Cashmere `B' 680,000 645
Pacific Ports Company, Ltd. (Acquired 4/21/97;
Cost $315) (b) (d) 782,000 293
Shandong Huaneng Power Company, Ltd. ADR 67,000 779
Shanghai Industrial Holdings, Ltd.
(Acquired 4/10/97; Cost $1,421)(b)(d) 320,000 1,801
--------
3,518
COLOMBIA 0.3%
Banco Ganadero SA ADS (representing Class C
Preference Shares) 28,700 793
EGYPT 2.3%
AL-Ahram Beverages Company S.A.E (b) 51,200 968
Egypt Investment Company, Ltd.
(Acquired 8/01/96-8/02/96; Cost $200)(b) 18,000 272
Egypt Investment Company, Ltd.
(Acquired 6/03/96; Cost $1,071)(b)(d) 104,000 1,573
The Foreign & Colonial Emerging Middle East
Fund, Inc. (b) 84,000 1,449
Misr Oil & Soap Company (b) 100,000 844
Nile for Matches 49,220 417
Suez Cement 58,024 1,215
--------
6,738
FINLAND 0.1%
Raision Tehtaat Oy `V Shares' (b) 3,600 299
FRANCE 2.3%
Accor SA 5,000 717
Club Mediterranee SA 29,000 2,247
Europe 1 Communication 1,798 364
Genset SA Sponsored ADR (b) 52,000 878
Louis Dreyfus Citrus (b) 52,000 1,869
Sabeton SA (b) 5,300 687
--------
6,762
GERMANY 2.5%
AGIV - AG fuer Industrie und Verkehrswesen (b) 35,000 655
Commerzbank AG 61,000 1,637
Leica Camera AG (b) 51,000 1,562
Metro AG (b) 2,500 243
Volkswagen AG 4,700 2,982
--------
7,079
GHANA 0.5%
Ashanti Goldfields Company, Ltd. GDR 128,000 1,520
HONG KONG 3.4%
Asia Satellite Telecommunications
Holdings, Ltd.(b) 387,000 982
C.P. Pokphand Company 200,000 63
CDL Hotels International, Ltd. 5,195,300 2,264
Guoco Group, Ltd. 249,000 1,183
Hong Kong Land Holdings, Ltd. 1,204,644 2,506
Jardine Strategic Holdings, Ltd. 451,625 1,536
Jardine Strategic Holdings, Ltd. Warrants,
Expire 5/02/98(b) 46,625 15
Peregrine Investment Holdings, Ltd. 601,000 923
Peregrine Investment Holdings, Ltd. Warrants,
Expire 5/15/98 (b) 125,100 19
VTech Holdings, Ltd. 150,000 252
--------
9,743
HUNGARY 0.4%
Euronet Services, Inc. (b) 103,000 1,294
INDIA 2.9%
Asian Hotels, Ltd. 238,000 1,447
Hindalco Industries, Ltd. 40,000 1,050
IS Himilayan Fund NV (b) 60,000 828
The India Gateway Fund, Ltd. (b) 125,000 565
The India Gateway Fund, Ltd. Warrants,
Expire 5/31/97 (b) 25,000 0
Indian Hotels Company, Ltd. 86,000 1,615
Oriental Bank of Commerce 16,200 35
Peregrine Indian Smaller Companies Fund (b) 7,100 415
State Bank of India, Ltd. 20,060 179
Titan Industries, Ltd. 200,000 346
Videsh Sanchar Nigam, Ltd. 57,000 1,957
--------
8,437
INDONESIA 3.1%
Bank Bali PT (Fgn Reg) 250,450 603
Bank Negara Indonesia PT (Fgn Reg) (b) 1,630,000 906
See notes to financial statements.
14
<PAGE>
- --------------------------------------------------------------------------------
STRONG INTERNATIONAL STOCK FUND (continued)
SHARES OR VALUE
PRINCIPAL (NOTE 2)
AMOUNT (In Thousands)
- --------------------------------------------------------------------------------
Bank Tiara Asia PT (Fgn Reg) 531,000 $ 645
Bukaka Teknik Utama PT (Fgn Reg) 187,000 117
Ciputra Development PT (Fgn Reg) 729,000 645
Jaya Real Property PT (Fgn Reg) 372,000 482
Komatsu Indonesia PT (Fgn Reg) 356,500 371
Lippo Life Insurance PT (Fgn Reg) 1,049,000 1,274
Modern Photo Film Company PT (Fgn Reg) 105,000 346
Semen Cibinong PT (Fgn Reg) 335,000 914
Sierad Produca PT (Fgn Reg) (b) 900,000 287
Siloam Gleneagles Health Care PT
(Acquired 3/12/97; Cost $1,004)(b)(d) 816,000 1,209
Tunas Ridean PT (Fgn Reg) 420,000 653
Van Der Horst Indonesia PT (Fgn Reg) 1,005,715 549
--------
9,001
IRELAND 0.1%
Connemara Green Marble Quarries PLC
(Acquired 11/21/96; Cost $400) (b) (d) 32,000 400
ISRAEL 0.3%
Ampal-American Israel Corporation Class A(b) 40,300 202
Koor Industries, Ltd. ADR 30,000 521
--------
723
ITALY 4.4%
Banca Commerciale Italiana 611,000 1,308
Costa Crociere Spa 588,000 1,313
Filatura del Brembo Spa 119,000 1,284
Finanziaria Autogrill Spa (b) 973,000 1,365
Gemina Spa (b) 145,400 59
Holding di Partecipazioni Industriali Spa (b) 3,036,100 1,656
Industrie Natuzzi Spa Sponsored ADR 52,000 1,157
STET - Societa' Finanziaria Telefonica PA 419,000 1,990
Simint Spa (b) 262,500 1,330
Zucchini Spa (b) 204,000 1,354
--------
12,816
JAPAN 8.9%
Chubu Steel Plate Company, Ltd. 130,000 614
Daiwa House Industry Company, Ltd. Warrants,
Expire 10/30/97 (b) 1,700 43
Diamond City Company 152,000 838
FamilyMart 4,240 155
Heiwa 78,000 1,032
Higashi Nihon House 65,000 640
Horipro, Inc. 98,000 689
Imagineer Company, Ltd. (b) 51,600 1,641
Japan Cash Machine Company, Ltd. 55,000 901
Japan Industrial Land Development 31,900 314
Japan Tobacco, Inc. 145 924
Marubeni Corporation (b) 184,000 682
Mitsubishi Corporation 127,000 1,190
Mitsui Fudosan 110,000 1,256
Miyota Company, Ltd. 78,000 921
Morgan Stanley Group, Inc. Nikkei 225 Index Call
Warrants, Expire 8/15/97 (b) 191,800 659
Nippon Felt Company, Ltd. 120,000 501
Nippon Shinpan Company 214,000 617
Nippon Telegraph & Telephone Corporation (b) 256 1,804
Nomura Securities Company, Ltd. 36,000 402
Ohmoto Gumi Company, Ltd. 78,000 626
Pioneer Electronic Corporation (b) 55,000 983
Powdertech 36,000 239
Roland 40,000 718
SXL Corporation Warrants, Expire 2/26/99 (b) 9,300 221
Shinseido Company, Ltd. 56,000 247
Shiseido Company, Ltd. 150,000 2,149
Shochiku Warrants, Expire 12/29/99 (b) 1,150 374
Softbank Corporation 11,700 686
Takihyo Company, Ltd. 61,000 576
Tiemco, Ltd. 11,000 546
Toho Company 11,110 1,487
Tokio Marine & Fire Insurance Company 107,000 1,044
--------
25,719
MALAYSIA 3.4%
Batu Kawan BHD 393,500 839
Highlands & Lowlands BHD 484,000 767
IJM Corporation BHD `A' 480,000 1,052
IOI Properties BHD 290,000 693
Leader Universal Holdings BHD 439,000 875
Malaysian Plantations BHD 454,000 680
Malaysian Plantations BHD Rights (b) 451,334 0
Malaysian Resources Corporation BHD 380,000 1,090
Sime UEP Properties BHD 450,000 896
TA Enterprise BHD 1,010,000 1,179
Technology Resources Industries BHD (b) 713,000 1,307
YTL Power International BHD (Acquired 3/26/97;
Cost $556) (b) (d) 345,000 550
--------
9,928
MEXICO 0.8%
Cifra SA de CV Unsponsored ADR B 757,000 1,132
Grupo Financiero Banamex Accival SA de CV (b) 490,000 1,045
--------
2,177
NAMIBIA 0.3%
Namibia Breweries 1,105,400 771
NETHERLANDS 1.1%
KLM Royal Dutch Airlines 43,000 1,279
Philips Electronics NV ADR 38,000 2,033
--------
3,312
NEW ZEALAND 4.1%
Air New Zealand, Ltd. Class B 690,000 1,993
CDL Hotels New Zealand, Ltd. (b) 2,789,000 1,024
Direct Capital Partners, Ltd. 200,000 98
Evergreen Forests, Ltd. (b) 2,000,000 831
Fernz Corporation, Ltd. 226,320 760
Guinness Peat Group PLC 5,396,729 3,327
Kiwi Income Property Trust 1,413,500 1,195
Shortland Properties, Ltd. 2,138,000 1,363
Sky City, Ltd. 244,500 1,098
--------
11,689
NORWAY 0.9%
Alvern Norway AS (b) 37,537 290
Norman Data Defense Systems (b) 46,000 711
Saga Petroleum ASA - A Shares 53,000 923
SensoNor AS (b) 92,000 594
--------
2,518
PAKISTAN 0.3%
Pakistan Investment Fund, Inc. (b) 183,000 938
PERU 1.4%
Compania de Minas Buenaventura SA
Sponsored ADR 92,000 2,001
Telefonica del Peru SA Sponsored ADR
Representing Class B Shares 46,000 1,104
Union de Cervecerias Perunas 1,050,000 907
--------
4,012
PHILIPPINES 0.5%
Benpres Holdings Corporation Sponsored GDR (b) 109,000 763
Guoco Holdings (Philippines) 5,500,000 804
--------
1,567
POLAND 0.7%
Best Series C (b) 77,000 1,449
The Fleming Poland Fund, Ltd. Redeemable
Participating Preference A Shares (b) 50,000 532
See notes to financial statements.
15
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
STRONG INTERNATIONAL STOCK FUND (continued)
SHARES OR VALUE
PRINCIPAL (NOTE 2)
AMOUNT (In Thousands)
- --------------------------------------------------------------------------------
The Fleming Poland Fund, Ltd. Warrants,
Expire 1/31/99 (b) 30,612 $ 77
--------
2,058
PORTUGAL 0.5%
Cimpor-Cimentos de Portugal SA 50,000 1,077
Portugal Fund, Inc. 18,900 293
--------
1,370
ROMANIA 0.1%
Societe Generale Romania Fund (b) 1,500 159
RUSSIA 2.5%
The Central European Growth Fund PLC (b) 1,757,000 2,002
First NIS Regional Fund (b) 40,000 648
Morgan Stanley Russia & New Europe Fund, Inc. 80,000 1,970
Ramco Energy PLC 35,000 568
Red October Russian Depository Trust Certificates
(Acquired 8/14/96; Cost $1,171) (b) (d) 14 1,575
SUN Brewing, Ltd. Sponsored GDR (b) 50,000 363
--------
7,126
SINGAPORE 4.6%
Aztech Systems, Ltd. 2,743,000 986
The Development Bank of Singapore, Ltd.(Fgn Reg) 18,000 214
FJ Benjamin Holdings, Ltd. (b) 860,000 416
Hong Leong Finance, Ltd. (Fgn Reg) 296,000 917
Hour Glass, Ltd. 781,000 510
Kay Hian James Capel Holdings, Ltd. 848,000 821
Keppel Bank 504,000 1,317
Keppel Corporation, Ltd. 327,500 1,426
Robinson & Company, Ltd. 250,000 1,261
Sembawang Corporation, Ltd. 160,000 691
Singapore Airlines, Ltd. (Fgn Reg) 105,000 929
Singapore Land, Ltd. 230,000 1,073
Singapore Sesdaq Fund (b) 36,000 783
United Overseas Land, Ltd. 784,000 1,133
United Overseas Land, Ltd. Warrants,
Expire 5/28/01 (b) 54,400 22
Van Der Horst, Ltd. 280,000 805
--------
13,304
SOUTH AFRICA 1.5%
Compagnie Financiere Richemont AG Depositary
Receipts 81,000 1,184
Energy Africa, Ltd. GDR (Acquired 2/23/96-5/21/96;
Cost $730)(b)(d) 55,000 1,183
Energy Africa, Ltd. GDS (b) 15,000 323
Engen, Ltd. 151,600 830
Morgan Stanley Africa Investment Fund, Inc. 48,000 816
--------
4,336
SOUTH KOREA 1.4%
Hana Bank 1,344 17
Hotel Shilla Company (b) 46,000 416
Kookmin Bank 86,581 1,600
Korean Airline Company, Ltd. (b) 61,218 1,107
Ssangyong Investment & Securities
Company, Ltd. (b) 123,920 794
--------
3,934
SPAIN 0.6%
Compania Espanola de Petroleos SA 31,000 987
Construcciones y Auxiliar de Ferrocarriles SA 21,065 823
--------
1,810
SRI LANKA 0.2%
Sri Lanka Growth Fund (b) 79,700 438
SWEDEN 1.4%
Argonaut AB `B Shares' (b) 177,000 300
Medical Invest Svenska AB `B Shares' (b) 29,100 946
NK Cityfastigheter AB (Acquired 3/14/97;
Cost $288) (b) (d) 35,000 246
Pharmacia & Upjohn, Inc. 36,000 1,066
Pricer AB `B Shares' (b) 28,000 885
Rottneros AB 440,000 488
--------
3,931
SWITZERLAND 4.1%
Liechtenstein Global Trust AG 1,300 715
Magazine Zum Globus Registered Shares 3,500 1,793
Nestle AG 455 553
Novartis AG 800 1,054
Oerlikon - Buehrle Holding AG `R' (b) 14,000 1,387
SGS (Societe Generale de Surveillance)
Holdings SA 800 1,656
SMH (Suisse Microelectronique et d'Horlogerie) 3,500 1,983
Schindler Holding AG 1,430 1,732
Sulzer AG Registered Shares 1,300 895
--------
11,768
TAIWAN 1.6%
Jardine Fleming Fund 1,835,000 916
Kwang Hua Fortune Fund 2,266,000 1,115
NITC Fu-yuan Fund 1,979,000 1,253
The R.O.C. Taiwan Fund (b) 93,000 1,197
--------
4,481
THAILAND 1.7%
BEC World PCL (b) 95,700 880
Loxley PCL (Fgn Reg) 52,400 175
Matichon PCL (Fgn Reg) 239,100 659
Property Perfect PCL (Fgn Reg) (b) 135,500 81
Saha Union PCL (Fgn Reg) 614,800 494
Shinawatra Computer Company PCL (Fgn Reg) 16,000 109
Siam Cement PCL (Fgn Reg) 8,000 214
Siam City Cement PCL (Fgn Reg) 113,000 513
TelecomAsia Corporation PCL (b) 500,000 929
Thai Telephone Communication PCL (Fgn Reg)(b) 1,328,000 852
--------
4,906
TURKEY 0.3%
The Turkey Trust PLC 180,000 780
UKRAINE 0.4%
Ukrainian Opportunity Fund (b) 118,800 1,200
UNITED KINGDOM 4.4%
Allied Domecq PLC (b) 188,967 1,339
Avis Europe PLC (Acquired 3/26/97;
Cost $404)(b)(d) 200,000 438
British Biotech PLC (b) 97,500 382
Caledonia Investments PLC 78,000 928
De La Rue PLC 96,000 861
English China Clays PLC 300,000 1,008
Games Workshop Group PLC 217,000 2,296
Inchcape PLC 406,952 1,810
Lonrho PLC 300,717 671
Select Appointments Holdings PLC ADR 15,000 174
Dr. Solomon's Group PLC Sponsored ADR (b) 25,000 578
Trocadero PLC (b) 1,435,000 862
Vickers PLC 390,000 1,342
--------
12,689
VENEZUELA 0.2%
Compania Anonima Nacional Telefonos de
Venezuela (b) 17,000 510
VIETNAM 0.3%
Vietnam Frontier Fund (b) 84,000 777
OTHER 0.7%
Morgan Stanley Emerging Markets Fund, Inc. 128,000 2,048
--------
TOTAL COMMON STOCKS (COST $260,378) 246,376
See notes to financial statements.
16
<PAGE>
- --------------------------------------------------------------------------------
STRONG INTERNATIONAL STOCK FUND (continued)
SHARES OR VALUE
PRINCIPAL (NOTE 2)
AMOUNT (In Thousands)
- --------------------------------------------------------------------------------
PREFERRED STOCKS 4.0%
AUSTRALIA 0.6%
The News Corporation, Ltd. 448,589 $ 1,713
BRAZIL 0.5%
Companhia Antartica Paulista - Industria
Brasileira de Bebidas e Conexos 12,340 1,531
GERMANY 2.0%
BBS Kraftfahrzeugtechnik AG (b) 5,300 903
Friedrich Grohe AG 5,700 1,707
Porsche AG Non-Voting 1,490 1,937
Villeroy & Boch AG 10,500 1,412
--------
5,959
ITALY 0.9%
IFI Istituto Finanziario
(Acquired 1/20/97-3/31/97; Cost $2,468)(d) 206,000 2,488
--------
TOTAL PREFERRED STOCKS (COST $10,638) 11,691
GOVERNMENT & AGENCY ISSUES 0.4%
NEW ZEALAND
Government of New Zealand Notes, 8.00%,
Due 11/15/06 (COST $1,253) 1,840 NZD 1,276
SHORT-TERM INVESTMENTS (a) 7.7%
COMMERCIAL PAPER 0.0%
INTEREST BEARING, DUE UPON DEMAND
United States Cayman Eurodollar
Call Deposit, 4.50% $14 14
TIME DEPOSITS 7.7%
EGYPT 0.3%
Citibank Time Deposit (with Egyptian Pound
indexation and interest based on the
Egyptian denominated deposit), 9.20%,
Due 7/21/97 1,020 USD 1,024
UNITED STATES 7.4%
Bank of Tokyo, Ltd. Time Deposit, 5.6875%,
Due 5/01/97 $14,200 14,200
First National Bank of Chicago Time Deposit,
5.6875%, Due 5/01/97 7,200 7,200
--------
21,400
--------
Total Time Deposits 22,424
--------
TOTAL SHORT-TERM INVESTMENTS (COST $22,434) 22,438
--------
TOTAL INVESTMENTS IN SECURITIES
(COST $294,703) 97.5% 281,781
Other Assets and Liabilities, Net 2.5% 7,150
--------
NET ASSETS 100.0% $288,931
========
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
- -------------------------------------------
UNREALIZED
VALUE APPRECIATION
SETTLEMENT IN USD (DEPRECIATION)
DATE (In Thousands) (In Thousands)
- ----------------------------------------------------------------------
Sold:
9,625,838 CHF 6/25/97 ($6,573) $177
10,210,200 DEM 7/25/97 (5,937) 63
132,700,000 THB 8/04/97 (5,079) (79)
PERCENTAGE OF
INDUSTRY DIVERSIFICATION NET ASSETS
- -----------------------------------------------------------------------
Conglomerate ......................................... 8.8%
Closed-End Fund ...................................... 8.5
Leisure Service ...................................... 6.8
Real Estate .......................................... 4.6
Engineering & Construction ........................... 4.5
Metals & Mining ...................................... 3.9
Telecommunication Service ............................ 3.8
Bank - Money Center .................................. 3.1
Finance - Miscellaneous .............................. 3.0
Oil - International Integrated ....................... 2.9
Automobile ........................................... 2.4
Beverage - Alcoholic ................................. 2.3
Food ................................................. 2.3
Household Appliances & Furnishings ................... 2.1
Consumer - Miscellaneous ............................. 2.0
Shoe & Apparel Manufacturing ......................... 2.0
Airline .............................................. 1.8
Media - Radio/TV ..................................... 1.4
Electronic Products - Miscellaneous .................. 1.3
Machinery - Miscellaneous ............................ 1.3
Retail - Specialty ................................... 1.3
Steel ................................................ 1.3
Electric Power ....................................... 1.2
Computer Software .................................... 1.1
Retail - Major Chain ................................. 1.1
Auto & Truck Parts ................................... 1.0
Beverage - Soft Drink ................................ 1.0
Brokerage & Investment Management .................... 1.0
Healthcare - Drug/Diversified ........................ 0.9
Agricultural Operations .............................. 0.8
Machinery - Transportation Equipment & Parts ......... 0.8
Media - Publishing ................................... 0.8
Retail - Department Store ............................ 0.8
Cosmetic & Personal Care ............................. 0.7
Insurance - Life ..................................... 0.7
Chemical ............................................. 0.6
Paper & Forest Products .............................. 0.6
Transportation Service ............................... 0.6
Diversified Operations ............................... 0.5
Retail - Restaurant .................................. 0.5
Foreign Government ................................... 0.4
Healthcare - Patient Care ............................ 0.4
Insurance - Diversified .............................. 0.4
Computer - Peripheral Equipment ...................... 0.3
Healthcare - Biomedical/Genetic ...................... 0.3
Healthcare - Medical Supply .......................... 0.3
Metal Products & Fabrication ......................... 0.3
Shipping ............................................. 0.3
Tobacco .............................................. 0.3
Housing .............................................. 0.2
Index Based .......................................... 0.2
Retail - Food Chain .................................. 0.2
Machinery - Construction & Mining .................... 0.1
Short-Term Investments ............................... 7.7
Other Assets and Liabilities, Net .................... 2.5
------
Total 100.0%
======
See notes to financial statements.
17
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
STRONG ASIA PACIFIC FUND
SHARES OR VALUE
PRINCIPAL (NOTE 2)
AMOUNT (In Thousands)
- --------------------------------------------------------------------------------
COMMON STOCKS 79.4%
AUSTRALIA 13.1%
AAPC, Ltd. 509,846 $ 311
Australian Tourism Group 150,000 93
Cinema Plus, Ltd. (b) 863,000 667
Coca-Cola Amatil, Ltd. 20,000 229
Corporate Express Australia (b) 200,000 161
David Jones, Ltd. 167,000 219
FAI Insurance, Ltd. 551,147 271
Leighton Holdings, Ltd. 62,000 279
MIM Holdings, Ltd. 206,048 269
Normandy Mining, Ltd. 655,308 803
Novus Petroleum, Ltd. 253,220 791
Oil Search, Ltd. 101,300 241
Orogen Minerals, Ltd. GDR (Acquired 10/31/96;
Cost $198)(d) 12,500 291
Peptide Technology, Ltd. (b) 150,000 65
Polartechnics, Ltd. (b) 175,000 281
Publishing & Broadcasting, Ltd. 37,000 195
Sea World Property Trust 13,000 18
Southern Star Group, Ltd. (b) 73,500 98
Spectrum Network Systems, Ltd. (b) 1,230,000 336
Sydney Aquarium, Ltd. 350,450 1,040
Sydney Harbour Casino Holdings, Ltd. (b) 200,000 337
Tourism Holdings, Ltd. 91,600 148
Western Mining Corporation, Ltd. 53,642 318
-------
7,461
CHINA 3.8%
C.H. China Investment, Ltd. (b) 593,000 301
C.H. China Investment, Ltd. Warrants,
Expire 7/01/99 237,500 22
China Merchants Hai Hong Holdings 144,000 154
Inner Mongolia Erdos Cashmere `B' 277,000 263
Pacific Ports Company, Ltd. (Acquired 4/21/97;
Cost $161)(b)(d) 400,000 150
Shandong Huaneng Power Company, Ltd. ADR 31,000 360
Shanghai Industrial Holdings, Ltd.
(Acquired 4/10/97; Cost $266)(b)(d) 60,000 338
Shenzen Expressway Company, Ltd.
(Acquired 3/07/97; Cost $488)(b)(d) 1,700,000 560
-------
2,148
HONG KONG 5.2%
Asia Satellite Telecommunications
Holdings, Ltd. (b) 77,000 195
C.P. Pokphand Company 230,000 72
CDL Hotels International, Ltd. 1,293,338 564
Guoco Group, Ltd. 57,000 271
Hong Kong Land Holdings, Ltd. 389,363 810
Jardine Matheson Holdings, Ltd. 25,877 142
Jardine Strategic Holdings, Ltd. 143,750 489
Jardine Strategic Holdings, Ltd. Warrants,
Expire 5/02/98 (b) 12,750 4
Peregrine Investment Holdings, Ltd. 204,000 313
Peregrine Investment Holdings, Ltd. Warrants,
Expire 5/15/98 (b) 43,400 6
VTech Holdings, Ltd. 50,000 84
-------
2,950
INDIA 4.1%
Asian Hotels, Ltd. 74,000 450
Hindalco Industries, Ltd. 15,000 394
IS Himilayan Fund NV (b) 22,000 304
The India Gateway Fund, Ltd. (b) 25,000 113
The India Gateway Fund, Ltd. Warrants,
Expire 5/31/97 (b) 5,000 0
Indian Hotels Company, Ltd. 25,000 469
Oriental Bank of Commerce 3,500 7
Peregrine Indian Smaller Companies Fund (b) 2,000 117
Reliance Industries, Ltd. 150 1
State Bank of India, Ltd. 8,070 72
Titan Industries, Ltd. 65,300 113
Videsh Sanchar Nigam, Ltd. 8,000 275
-------
2,315
INDONESIA 5.6%
Bank Bali PT (Fgn Reg) 91,100 219
Bank Negara Indonesia PT (Fgn Reg) (b) 295,000 164
Bank Tiara Asia PT (Fgn Reg) 211,000 256
Bukaka Teknik Utama PT (Fgn Reg) 139,500 88
Ciputra Development PT (Fgn Reg) 210,500 186
Jaya Real Property PT (Fgn Reg) 160,000 207
Komatsu Indonesia PT (Fgn Reg) 244,000 254
Lippo Bank PT (Fgn Reg) 200,000 191
Lippo Life Insurance PT (Fgn Reg) 294,000 357
Modern Photo Film Company PT (Fgn Reg) 44,000 145
Putra Surya Multidana PT (b) 135,000 153
Semen Cibinong PT (Fgn Reg) 102,000 278
Sierad Produca PT (Fgn Reg) (b) 250,000 80
Siloam Gleneagles Health Care PT
(Acquired 3/12/97; Cost $207)(b)(d) 168,000 249
Telekomunikasi Indonesia PT (Fgn Reg)
(Acquired 12/11/96; Cost $55) (d) 35,000 51
Tunas Ridean PT (Fgn Reg) 80,000 124
Van Der Horst Indonesia PT (Fgn Reg) 285,715 156
-------
3,158
JAPAN 12.2%
Chubu Steel Plate Company, Ltd. 36,000 170
Daiwa House Industry Company, Ltd. Warrants,
Expire 10/30/97 (b) 1,450 37
Diamond City Company 38,000 209
FamilyMart 1,100 40
Heiwa 28,000 370
Higashi Nihon House 15,000 148
Hokuetsu Metal 44,000 118
Horipro, Inc. 26,000 183
Imagineer Company, Ltd. (b) 13,200 420
Japan Cash Machine Company, Ltd. 14,300 234
Japan Industrial Land Development 9,500 93
Japan Tobacco, Inc. 30 191
Marubeni Corporation (b) 41,000 152
Mitsubishi Corporation 35,000 328
Mitsui Fudosan 32,000 365
Miyota Company, Ltd. 15,000 177
Morgan Stanley Group, Inc. Nikkei 225 Index Call
Warrants, Expire 8/15/97 (b) 62,000 213
Nippon Felt Company, Ltd. 34,000 142
Nippon Shinpan Company 74,000 213
Nippon Telegraph & Telephone Corporation (b) 53 373
Nomura Securities Company, Ltd. 14,000 157
Ohmoto Gumi Company, Ltd. 18,640 150
Pioneer Electronic Corporation (b) 11,000 197
Powdertech 8,000 53
Roland 10,000 179
SXL Corporation Warrants, Expire 2/26/99 (b) 1,900 45
Shinseido Company, Ltd. 16,000 71
Shiseido Company, Ltd. 41,000 587
Shochiku Warrants, Expire 12/29/99 (b) 375 122
Softbank Corporation 3,120 183
Takihyo Company, Ltd. 13,000 123
Tiemco, Ltd. 3,000 149
Toho Company 3,110 416
Tokio Marine & Fire Insurance Company 20,000 195
Toko Seiki Company 26,000 110
-------
6,913
See notes to financial statements.
18
<PAGE>
- --------------------------------------------------------------------------------
STRONG ASIA PACIFIC FUND (continued)
SHARES OR VALUE
PRINCIPAL (NOTE 2)
AMOUNT (In Thousands)
- --------------------------------------------------------------------------------
MALAYSIA 5.6%
Batu Kawan BHD 213,500 $ 455
Highlands & Lowlands BHD 149,000 236
IJM Corporation BHD `A' 183,000 401
IOI Properties BHD 95,000 227
Leader Universal Holdings BHD 81,000 161
Malaysian Plantations BHD 221,000 331
Malaysian Plantations BHD Rights (b) 238,000 0
Malaysian Resources Corporation BHD 128,000 367
Sime UEP Properties BHD 95,000 189
TA Enterprise BHD 295,000 345
Technology Resources Industries BHD (b) 175,000 321
YTL Power International BHD (Acquired 3/26/97;
Cost $105)(b)(d) 65,000 103
-------
3,136
NEW ZEALAND 9.6%
Air New Zealand, Ltd. Class B 165,000 477
CDL Hotels New Zealand, Ltd. (b) 952,000 350
Corporate Investments, Ltd. (b) 700,000 344
Dairy Brands New Zealand, Ltd. (b) 294,200 74
Direct Capital Partners, Ltd. 400,000 197
Evergreen Forests, Ltd. (b) 1,300,000 540
Fernz Corporation, Ltd. 68,470 230
Guinness Peat Group PLC 1,825,561 1,126
Hellaby Holdings, Ltd. 130,400 201
Kiwi Income Property Trust 285,000 241
Kiwi Income Property Trust - B Shares (b) 96,000 50
Kiwi Income Property Trust Units 734,000 564
Lane Walker Rudkin Industries, Ltd. 65,000 71
Seafresh Fisheries New Zealand, Ltd. 288,100 86
Shortland Properties, Ltd. 790,000 504
Sky City, Ltd. 81,000 364
-------
5,419
PAKISTAN 0.4%
Pakistan Investment Fund, Inc. (b) 43,000 220
PHILIPPINES 2.2%
Benpres Holdings Corporation (Acquired 10/25/94-
1/30/96; Cost $561)(b)(d) 63,080 441
DMCI Holdings, Inc. (b) 150,000 77
Equitable Banking Corporation (b) 63,000 246
The Filipino Fund, Inc. 5,000,000 177
Guoco Holdings (Philippines) 1,900,000 278
-------
1,219
SINGAPORE 8.8%
Aztech Systems, Ltd. 1,185,000 426
Courts (Singapore), Ltd. 290,000 367
FJ Benjamin Holdings, Ltd. (b) 263,000 127
GP Batteries International, Ltd. (d) 39,000 115
Hong Leong Finance, Ltd. (Fgn Reg) 144,000 446
Hour Glass, Ltd. 148,000 97
Kay Hian James Capel Holdings, Ltd. 258,000 250
Keppel Bank 184,000 481
Keppel Corporation, Ltd. 87,500 381
Robinson & Company, Ltd. 71,000 358
Sembawang Corporation, Ltd. 56,000 242
Singapore Airlines, Ltd. (Fgn Reg) 35,000 310
Singapore Land, Ltd. 77,000 359
Singapore Sesdaq Fund (b) 23,000 500
United Overseas Land, Ltd. 188,000 272
United Overseas Land, Ltd. Warrants,
Expire 5/28/01 (b) 11,400 5
Van Der Horst, Ltd. 79,000 227
-------
4,963
SOUTH KOREA 2.1%
Hana Bank 19,465 252
Hotel Shilla Company (b) 9,000 81
Kookmin Bank 19,497 360
Korean Airline Company, Ltd. (b) 13,200 239
Ssangyong Investment & Securities
Company, Ltd. (b) 39,024 250
-------
1,182
SRI LANKA 0.2%
Sri Lanka Growth Fund (b) 21,800 120
TAIWAN 2.3%
Core Pacific Pioneer Fund (b) 166,000 82
Jardine Fleming Fund 520,000 260
Kwang Hua Fortune Fund 619,000 305
NITC Fu-yuan Fund 547,000 346
The R.O.C. Taiwan Fund (b) 24,000 309
-------
1,302
THAILAND 2.6%
BEC World PCL (b) 17,600 162
Loxley PCL (Fgn Reg) 18,000 60
Matichon PCL (Fgn Reg) 76,000 210
Property Perfect PCL (Fgn Reg) (b) 39,100 23
Saha Union PCL (Fgn Reg) 362,700 292
Sermsuk PCL (Fgn Reg) 4,100 82
Shinawatra Computer Company PCL (Fgn Reg) 4,000 27
Siam Cement PCL (Fgn Reg) 3,000 80
Siam City Cement PCL (Fgn Reg) 28,000 127
TelecomAsia Corporation PCL (b) 100,000 186
Thai Telephone Communication PCL (Fgn Reg)(b) 332,500 213
-------
1,462
VIETNAM 1.0%
Beta Mekong Fund, Ltd. (b) 5,000 233
Vietnam Frontier Fund (b) 34,000 315
-------
548
OTHER 0.6%
Morgan Stanley Emerging Markets Fund, Inc. 20,000 320
-------
TOTAL COMMON STOCKS (COST $51,548) 44,836
PREFERRED STOCKS 1.3%
AUSTRALIA 1.1%
The News Corporation, Ltd. 167,967 641
SOUTH KOREA 0.2%
Korean Air Lines Company, Ltd. (b) 17,660 125
-------
TOTAL PREFERRED STOCKS (COST $977) 766
GOVERNMENT & AGENCY ISSUES 0.6%
NEW ZEALAND
Government of New Zealand Notes, 8.00%,
Due 11/15/06 (COST $321) 470 NZD 326
See notes to financial statements.
19
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
STRONG ASIA PACIFIC FUND (continued)
SHARES OR VALUE
PRINCIPAL (NOTE 2)
AMOUNT (In Thousands)
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 13.7%
COMMERCIAL PAPER 0.1%
INTEREST BEARING DUE UPON DEMAND
United States Cayman Eurodollar Call
Deposit, 4.50% $ 44 $ 44
TIME DEPOSITS 13.6%
UNITED STATES
Bank of Tokyo, Ltd. Time Deposit, 5.6875%,
Due 5/01/97 2,700 2,700
Canadian Imperial Bank Time Deposit, 5.625%,
Due 5/01/97 2,300 2,300
Deutsche Bank Time Deposit, 5.65%, Due 5/01/97 2,700 2,700
-------
Total Time Deposits 7,700
-------
TOTAL SHORT-TERM INVESTMENTS (COST $7,744) 7,744
-------
TOTAL INVESTMENTS IN SECURITIES
(COST $60,590) 95.0% 53,672
Other Assets and Liabilities, Net 5.0% 2,827
-------
NET ASSETS 100.0% $56,499
=======
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
- -------------------------------------------
UNREALIZED
VALUE APPRECIATION
SETTLEMENT IN USD (DEPRECIATION)
DATE (In Thousands) (In Thousands)
- ----------------------------------------------------------------------
Sold:
37,191,000 THB 8/04/97 ($1,424) ($23)
PERCENTAGE OF
INDUSTRY DIVERSIFICATION NET ASSETS
- -----------------------------------------------------------------------
Leisure Service ...................................... 9.7%
Conglomerate ......................................... 9.6
Real Estate .......................................... 7.5
Closed-End Fund ...................................... 7.2
Engineering & Construction ........................... 4.0
Metals & Mining ...................................... 3.9
Finance - Miscellaneous .............................. 3.4
Bank - Money Center .................................. 3.2
Telecommunication Service ............................ 2.9
Airline .............................................. 2.0
Oil - International Integrated ....................... 1.8
Brokerage & Investment Management .................... 1.7
Media - Publishing ................................... 1.5
Retail - Specialty ................................... 1.5
Agricultural Operations .............................. 1.4
Electronic Products - Miscellaneous .................. 1.3
Shoe & Apparel Manufacturing ......................... 1.3
Transportation Service ............................... 1.3
Machinery - Miscellaneous ............................ 1.2
Paper & Forest Products .............................. 1.2
Computer Software .................................... 1.1
Insurance - Life ..................................... 1.1
Media - Radio/TV ..................................... 1.1
Cosmetic & Personal Care ............................. 1.0
Retail - Department Store ............................ 1.0
Computer - Peripheral Equipment ...................... 0.8
Electric Power ....................................... 0.8
Consumer - Miscellaneous ............................. 0.7
Foreign Government ................................... 0.6
Beverage - Soft Drink ................................ 0.5
Healthcare - Instrumentation ......................... 0.5
Healthcare - Patient Care ............................ 0.4
Index Based .......................................... 0.4
Machinery - Construction & Mining .................... 0.4
Shipping ............................................. 0.4
Chemical - Specialty ................................. 0.3
Food ................................................. 0.3
Housing .............................................. 0.3
Insurance - Diversified .............................. 0.3
Metal Products & Fabrication ......................... 0.3
Steel ................................................ 0.3
Tobacco .............................................. 0.3
Automobile ........................................... 0.2
Diversified Operations ............................... 0.2
Retail - Food Chain .................................. 0.2
Chemical ............................................. 0.1
Healthcare - Biomedical/Genetic ...................... 0.1
Short-Term Investments ............................... 13.7
Other Assets and Liabilities, Net .................... 5.0
------
Total 100.0%
======
LEGEND
- ------
(a) Short-term investments include any security which has a maturity of less
than one year.
(b) Non-income producing security.
(c) All or a portion of security pledged to cover margin requirements for
futures contracts.
(d) Restricted security.
All principal amounts and costs are stated in thousands.
Percentages are stated as a percent of net assets.
CURRENCY ABBREVIATIONS
- ----------------------
AUD Australian Dollar
CAD Canadian Dollar
CHF Swiss Franc
DEM German Mark
DKK Danish Krona
ESP Spanish Peseta
FIM Finish Mark
FRF French Franc
GBP British Pound
IDR Indonesian Rupiah
IEP Irish Punt
ITL Italian Lira
JPY Japanese Yen
NZD New Zealand Dollar
SEK Swedish Krona
THB Thailand Baht
USD United States Dollar
ZAR South African Rand
See notes to financial statements.
20
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
- ----------------------------------------------------------------------------------------------------------------------------------
April 30, 1997 (Unaudited)
(In Thousands, Except Per Share Amounts)
<CAPTION>
STRONG SHORT-TERM STRONG INTERNATIONAL
GLOBAL BOND FUND BOND FUND
----------------- --------------------
ASSETS:
<S> <C> <C>
Investments in Securities, at Value (Cost of $86,601 and $32,993, respectively) $ 86,087 $32,658
Receivable from Brokers for Securities and Forward Foreign Currency Contracts Sold 445 365
Receivable for Fund Shares Sold 35 6
Interest Receivable 923 526
Other Assets -- 18
-------- -------
Total Assets 87,490 33,573
LIABILITIES:
Payable to Brokers for Securities and Forward Foreign Currency Contracts Purchased 6,564 2,723
Payable for Fund Shares Redeemed -- 4
Accrued Operating Expenses and Other Liabilities 131 97
-------- -------
Total Liabilities 6,695 2,824
-------- -------
NET ASSETS $ 80,795 $30,749
======== =======
Capital Shares Outstanding (Unlimited Number Authorized) 7,518 2,805
NET ASSET VALUE PER SHARE $10.75 $10.96
====== ======
STRONG INTERNATIONAL STRONG ASIA
STOCK FUND PACIFIC FUND
-------------------- -------------
ASSETS:
Investments in Securities, at Value (Cost of $294,703 and $60,590, respectively) $281,781 $53,672
Receivable from Brokers for Securities and Forward Foreign Currency Contracts Sold 7,484 1,239
Receivable for Fund Shares Sold 76 943
Dividends and Interest Receivable 1,104 178
Other Assets 1,188 1,381
-------- -------
Total Assets 291,633 57,413
LIABILITIES:
Payable to Brokers for Securities and Forward Foreign Currency Contracts Purchased 2,383 775
Payable for Fund Shares Redeemed 16 3
Accrued Operating Expenses and Other Liabilities 303 136
-------- -------
Total Liabilities 2,702 914
-------- -------
NET ASSETS $288,931 $56,499
======== =======
Capital Shares Outstanding (Unlimited Number Authorized) 21,052 6,056
NET ASSET VALUE PER SHARE $13.72 $9.33
====== =====
See notes to financial statements.
21
</TABLE>
<PAGE>
STATEMENTS OF OPERATIONS
<TABLE>
- ---------------------------------------------------------------------------------------------------------------------------
For the Six Months Ended April 30, 1997 (Unaudited)
(In Thousands)
<CAPTION>
STRONG SHORT-TERM STRONG INTERNATIONAL
GLOBAL BOND FUND BOND FUND
----------------- --------------------
INCOME:
<S> <C> <C>
Interest $ 2,944 $1,375
Dividends 63 27
------- ------
Total Income 3,007 1,402
EXPENSES:
Investment Advisory Fees 231 114
Custodian Fees 57 49
Shareholder Servicing Costs 63 57
Federal and State Registration Fees 10 28
Other 30 23
------- ------
Total Expenses before Waivers and Absorptions 391 271
Voluntary Expense Waivers and Absorptions by Advisor (147) (162)
------- ------
Expenses, Net 244 109
------- ------
NET INVESTMENT INCOME 2,763 1,293
REALIZED AND UNREALIZED GAIN (LOSS):
Net Realized Gain (Loss) on:
Investments 597 523
Futures Contracts, Options and Forward Foreign Currency Contracts 832 (1,766)
Foreign Currencies (8) 14
Change in Unrealized Appreciation/Depreciation on:
Investments (1,575) (1,242)
Futures Contracts, Options and Forward Foreign Currency Contracts 333 (880)
Foreign Currencies (57) (41)
------- -------
NET GAIN (LOSS) 122 (3,392)
------- -------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 2,885 ($2,099)
======= =======
STRONG INTERNATIONAL STRONG ASIA
STOCK FUND PACIFIC FUND
-------------------- -------------
INCOME:
Dividends (net of withholding taxes of $262 and $64, respectively) $ 3,084 $ 509
Interest 716 228
------- ------
Total Income 3,800 737
EXPENSES:
Investment Advisory Fees 1,488 323
Custodian Fees 261 108
Shareholder Servicing Costs 442 138
Reports to Shareholders 93 37
Other 58 42
------- ------
Total Expenses 2,342 648
------- ------
NET INVESTMENT INCOME 1,458 89
REALIZED AND UNREALIZED GAIN (LOSS):
Net Realized Gain (Loss) on:
Investments 11,241 952
Futures Contracts, Options and Forward Foreign Currency Contracts 1,842 (77)
Foreign Currencies (12) (5)
Change in Unrealized Appreciation/Depreciation on:
Investments 3,429 (1,000)
Futures Contracts, Options and Forward Foreign Currency Contracts 431 (7)
Foreign Currencies (28) (9)
------- ------
NET GAIN (LOSS) 16,903 (146)
------- ------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $18,361 ($ 57)
======= ========
See notes to financial statements.
</TABLE>
22
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
- ---------------------------------------------------------------------------------------------------------------------------
(In Thousands)
STRONG SHORT-TERM STRONG INTERNATIONAL
GLOBAL BOND FUND BOND FUND
------------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1997 OCT. 31, 1996 APRIL 30, 1997 OCT. 31, 1996
---------------- ------------- ---------------- -------------
(UNAUDITED) (UNAUDITED)
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income $ 2,763 $ 2,826 $ 1,293 $ 2,021
Net Realized Gain (Loss) 1,421 190 (1,229) (213)
Change in Unrealized Appreciation/Depreciation (1,299) 917 (2,163) 444
-------- -------- ------- -------
Increase (Decrease) in Net Assets Resulting from Operations 2,885 3,933 (2,099) 2,252
CAPITAL SHARE TRANSACTIONS 9,832 44,452 2,376 8,765
DISTRIBUTIONS:
From Net Investment Income (2,795) (2,683) (585) (1,116)
From Net Realized Gains -- -- (42) (137)
-------- -------- ------- -------
TOTAL INCREASE (DECREASE) IN NET ASSETS 9,922 45,702 (350) 9,764
NET ASSETS:
Beginning of Period 70,873 25,171 31,099 21,335
-------- -------- ------- -------
End of Period $ 80,795 $ 70,873 $30,749 $31,099
======== ======== ======= =======
STRONG INTERNATIONAL STRONG ASIA
STOCK FUND PACIFIC FUND
------------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1997 OCT. 31, 1996 APRIL 30, 1997 OCT. 31, 1996
---------------- ------------- ---------------- -------------
(UNAUDITED) (UNAUDITED)
OPERATIONS:
Net Investment Income $ 1,458 $ 1,844 $ 89 $ 125
Net Realized Gain 13,071 26,382 870 4,172
Change in Unrealized Appreciation/Depreciation 3,832 (9,644) (1,016) (2,446)
-------- -------- ------- -------
Increase (Decrease) in Net Assets Resulting from Operations 18,361 18,582 (57) 1,851
CAPITAL SHARE TRANSACTIONS (15,147) 84,288 (14,597) 18,249
DISTRIBUTIONS:
From Net Investment Income (1,171) (1,929) (20) (125)
In Excess of Net Investment Income -- (8,449) -- (2,584)
From Net Realized Gains (17,009) -- (866) --
-------- -------- ------- -------
TOTAL INCREASE (DECREASE) IN NET ASSETS (14,966) 92,492 (15,540) 17,391
NET ASSETS:
Beginning of Period 303,897 211,405 72,039 54,648
-------- -------- ------- -------
End of Period $288,931 $303,897 $56,499 $72,039
======== ======== ======= =======
See notes to financial statements.
23
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
April 30, 1997 (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, diversified and non-diversified, open-end
management investment companies registered under the Investment Company Act
of 1940.
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, when held by the Funds, 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, 1997 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 $11,581 $3,013 $10,248 $2,041
Aggregate Fair Value 11,750 3,099 12,372 2,183
Percent of Net Assets 14.5%* 10.1%* 4.3% 3.9%
* Of these securities, which are restricted from resale, 88% and 65%, for Strong Short-Term Global Bond Fund and Strong
International Bond Fund, respectively, are eligible for resale pursuant to Rule 144A under the Securities Act of 1933 and
also have been determined to be liquid by the Advisor based upon guidelines established by the Funds' Board of Directors.
</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 -- Gains or
losses realized on investment transactions are determined by comparing
the identified cost of the security lot sold with the net sales
proceeds.
(D) Futures -- Upon entering into a futures contract, the Funds pledge to
the broker cash or other investments equal to the minimum "initial
margin" requirements of the exchange. The Funds also receive from or
pay to the broker an amount of cash equal to the daily fluctuation in
the value of the contract. Such receipts or payments are known as
"variation margin," and are recorded as unrealized gains or losses.
When the futures contract is closed, a realized gain or loss is
recorded equal to the difference between the value of the contract at
the time it was opened and the value at the time it was closed.
(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>
- --------------------------------------------------------------------------------
(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 foreign currency exchange
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 foreign
currency exchange contracts may involve greater risks than domestic
transactions, including currency, political and economic, regulatory
and market risks.
(I) Use of Estimates -- The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements, and the
reported amounts of increases and decreases in net assets from
operations during the reporting period. Actual results could differ
from those estimates.
(J) 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, 1997 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 $79,183 $31,565 $288,710 $62,702
Undistributed Net Investment Income (Loss) 431 1,670 246 (5)
Undistributed Net Realized Gain (Loss) 1,347 (1,215) 12,780 753
Net Unrealized Depreciation (166) (1,271) (12,805) (6,951)
------- ------- -------- -------
$80,795 $30,749 $288,931 $56,499
======= ======= ======== =======
</TABLE>
4. CAPITAL SHARE TRANSACTIONS
<TABLE>
Transactions in shares of the Funds for the six months ended April 30, 1997 and the year ended October 31, 1996 were
as follows (in thousands):
1997 1996
------------------- ------------------
<CAPTION>
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
STRONG SHORT-TERM GLOBAL BOND FUND
<S> <C> <C> <C> <C>
Shares Sold 5,148 $ 55,500 7,520 $ 79,731
Dividends Reinvested 246 2,628 234 2,465
Shares Redeemed (4,478) (48,296) (3,559) (37,744)
------- -------- ------ --------
916 $ 9,832 4,195 $ 44,452
======= ======== ====== ========
STRONG INTERNATIONAL BOND FUND
Shares Sold 1,047 $ 12,187 2,700 $ 31,035
Dividends Reinvested 50 589 105 1,203
Shares Redeemed (911) (10,400) (2,045) (23,473)
----- -------- ------ --------
186 $ 2,376 760 $ 8,765
===== ======== ====== ========
STRONG INTERNATIONAL STOCK FUND
Shares Sold 8,126 $112,477 20,236 $288,061
Dividends Reinvested 1,345 17,736 725 10,102
Shares Redeemed (10,516) (145,360) (15,083) (213,875)
------- --------- ------- --------
(1,045) ($ 15,147) 5,878 $ 84,288
======= ========= ======= ========
STRONG ASIA PACIFIC FUND
Shares Sold 4,790 $ 45,808 13,443 $134,865
Dividends Reinvested 90 856 266 2,633
Shares Redeemed (6,395) (61,261) (11,861) (119,249)
------ --------- ------- --------
(1,515) ($ 14,597) 1,848 $ 18,249
====== ========= ======= ========
25
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
April 30, 1997 (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.
The Funds may invest cash reserves in money market funds sponsored and
managed by Strong Capital Management, Inc., subject to certain limitations.
The terms of such transactions are identical to those of non-related
entities except that, to avoid duplicate investment advisory fees, the
Advisor remits to each Fund an amount equal to all fees otherwise due to
them under their investment advisory agreement for the assets invested in
such money market funds.
Certain information regarding related party transactions for the six months
ended April 30, 1997 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, 1997 $63 $67 $14 $19
Other Shareholder Servicing
Expenses Paid to Advisor 1 1 7 3
Unaffiliated Directors' Fees 1 1 2 1
</TABLE>
6. INVESTMENT TRANSACTIONS
<TABLE>
The aggregate purchases and sales of long-term securities for the six months ended April 30, 1997 were as follows (in
thousands):
<CAPTION>
STRONG SHORT-TERM STRONG INTERNATIONAL STRONG INTERNATIONAL STRONG ASIA
GLOBAL BOND FUND BOND FUND STOCK FUND PACIFIC FUND
---------------- -------------------- -------------------- ------------
Purchases:
<S> <C> <C> <C> <C>
U.S. Government and Agency $ 808 __ __ __
Other 64,263 $30,182 $165,130 $23,707
Sales:
U.S. Government and Agency 3,403 1,226 __ __
Other 54,477 29,251 195,707 40,787
</TABLE>
7. INCOME TAX INFORMATION
<TABLE>
At April 30, 1997, the investment cost and gross unrealized appreciation and depreciation on investments for federal
income tax purposes were as follows (in thousands):
<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 $86,602 $33,008 $294,715 $60,595
======= ======= ======== =======
Aggregate Unrealized:
Appreciation $ 436 $ 444 $ 24,612 $ 3,941
Depreciation (951) (794) (37,546) (10,864)
------- -------- ----------
$ 515 ($ 350) ($ 12,934) ($ 6,923)
======= ======== ========= ========
Capital Loss Carryovers
(at October 31, 1996) $ 19 $ __ $ __ $ __
======= ======== ========= ========
</TABLE>
Capital loss carryovers expire in varying amounts through 2003.
26
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
- -------------------------------------------------------------------------------------------------------------
STRONG SHORT-TERM GLOBAL BOND FUND
- -------------------------------------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(a)
--------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
---------------------------------- --------------------------------
<CAPTION>
Net Realized
Net Asset and Unrealized Total In Excess Net Asset
Value, Net Gains from From Net of Net Value,
Beginning Investment (Losses)on Investment Investment Investment Total End of
of Period Income Investments Operations Income Income Distributions Period
<S> <C> <C> <C> <C> <C> <C> <C> <C>
April 30, 1997 (b) $10.74 $0.39 $0.03 $0.42 ($0.41) __ ($0.41) $10.75
Oct. 31, 1996 10.46 0.71 0.34 1.05 (0.77) __ (0.77) 10.74
Oct. 31, 1995 (c) 10.15 0.65 0.20 0.85 (0.54) __ (0.54) 10.46
Dec. 31, 1994 (d) 10.00 0.35 0.16 0.51 (0.35) ($0.01) (0.36) 10.15
</TABLE>
STRONG SHORT-TERM GLOBAL BOND FUND (continued)
<TABLE>
- ------------------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA
-----------------------------------------------------------------------
<CAPTION>
Net Ratio of Expenses Ratio of Net
Assets, Ratio of to Average Net Investment
End of Expenses Assets Without Income Portfolio
Total Period (In to Average Waivers and to Average Turnover
Return Millions) Net Assets Absorptions Net Assets Rate
<S> <C> <C> <C> <C> <C> <C>
April 30, 1997(b) +3.9% $81 0.7%* 1.1%* 7.4%* 98.0%
Oct. 31, 1996 +10.4% 71 0.0% 1.5% 7.4% 179.7%
Oct. 31, 1995(c) +8.5% 25 0.0%* 2.0%* 8.2%* 437.3%
Dec. 31, 1994(d) +5.1% 20 0.0%* 1.7%* 7.7%* 287.8%
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund outstanding for the entire period.
(b) For the six months ended April 30, 1997 (Unaudited). Total return and portfolio turnover rate are not annualized.
(c) Total return and portfolio turnover rate are not annualized.
(d) Inception date is March 31, 1994. Total return and portfolio turnover rate are not annualized.
</TABLE>
STRONG INTERNATIONAL BOND FUND
<TABLE>
- ----------------------------------------------------------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(a)
-----------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
---------------------------------- -----------------------------------------
<CAPTION>
Net Realized
Net Asset and Unrealized Total In Excess In Excess Net Asset
Value, Net Gains from From Net of Net From Net of Net Value,
Beginning Investment (Losses)on Investment Investment Investment Realized Realized Total End of
of Period Income Investments Operations Income Income Gains Gains Distributions Period
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
April 30, 1997 (b) $11.87 $0.43 ($1.13) ($0.70) ($0.20) __ ($0.01) __ ($0.21) $10.96
Oct. 31, 1996 11.48 0.80 0.15 0.95 (0.50) __ (0.06) __ (0.56) 11.87
Oct. 31, 1995 (c) 10.36 0.78 1.00 1.78 (0.66) __ __ __ (0.66) 11.48
Dec. 31, 1994 (d) 10.00 0.46 0.40 0.86 (0.46) ($0.02) __ ($0.02) (0.50) 10.36
</TABLE>
STRONG INTERNATIONAL BOND FUND (continued)
<TABLE>
- -------------------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA
------------------------------------------------------------------------
<CAPTION>
Net Ratio of Expenses Ratio of Net
Assets, Ratio of to Average Net Investment
End of Expenses Assets Without Income Portfolio
Total Period (In to Average Waivers and to Average Turnover
Return Millions) Net Assets Absorptions Net Assets Rate
<S> <C> <C> <C> <C> <C> <C>
April 30, 1997(b) -6.0% $31 0.7%* 1.7%* 7.9%* 112.3%
Oct. 31, 1996 +8.6% 31 0.0% 1.8% 7.4% 258.3%
Oct. 31, 1995 (c) +17.3% 21 0.0%* 2.0%* 8.3%* 473.3%
Dec. 31, 1994 (d) +8.7% 10 0.0%* 2.0%* 7.9%* 679.3%
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund outstanding for the entire period.
(b) For the six months ended April 30, 1997 (Unaudited). Total return and portfolio turnover rate are not annualized.
(c) Total return and portfolio turnover rate are not annualized.
(d) Inception date is March 31, 1994. Total return and portfolio turnover rate are not annualized.
27
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
- ----------------------------------------------------------------------------------------------------------------------------------
STRONG INTERNATIONAL STOCK FUND
- ----------------------------------------------------------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(a)
-----------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
---------------------------------- ------------------------------------------------------
<CAPTION>
Net Realized
Net Asset and Unrealized Total In Excess In Excess Net Asset
Value, Net Gains from From Net of Net From Net of Net Value,
Beginning Investment (Losses)on Investment Investment Investment Realized Realized Total End of
of Period Income Investments Operations Income Income Gains Gains Distributions Period
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
April 30, 1997(c) $13.75 $0.07 $0.77 $0.84 ($0.06) __ ($0.81) __ ($0.87) $13.72
Oct. 31, 1996 13.03 0.17 1.11 1.28 (0.18) ($0.38) __ __ (0.56) 13.75
Oct. 31, 1995(d) 12.65 0.08 0.37 0.45 (0.07) __ __ __ (0.07) 13.03
Dec. 31, 1994 14.18 0.06 (0.27) (0.21) (0.01) __ (1.25) ($0.06) (1.32) 12.65
Dec. 31, 1993 9.77 __ 4.66 4.66 __ (0.02) (0.23) __ (0.25) 14.18
Dec. 31, 1992(e) 10.00 0.05 (0.23) (0.18) (0.05) __ __ __ (0.05) 9.77
</TABLE>
STRONG INTERNATIONAL STOCK FUND (continued)
<TABLE>
- -----------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA
----------------------------------------------------------------
<CAPTION>
Net Ratio of Net
Assets, Ratio of Investment Average
End of Expenses Income Portfolio Commission
Total Period (In to Average to Average Turnover Rate
Return Millions) Net Assets Net Assets Rate Paid(b)
<S> <C> <C> <C> <C> <C> <C>
April 30, 1997(c) +6.3% $289 1.6%* 1.0%* 60.1% $0.0014
Oct. 31, 1996 +9.8% 304 1.7% 0.6% 108.6% 0.0166
Oct. 31, 1995(d) +3.6% 211 1.8%* 0.8%* 102.0%
Dec. 31, 1994 -1.6% 258 1.7% 0.3% 136.5%
Dec. 31, 1993 +47.8% 128 1.9% (0.3%) 139.9%
Dec. 31, 1992(e) -1.8% 13 2.0%* 0.8%* 20.8%
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund outstanding for the entire period.
(b) Disclosure required, effective for reporting periods beginning after September 1, 1995.
(c) For the six months ended April 30, 1997 (Unaudited). Total return and portfolio turnover rate are not annualized.
(d) Total return and portfolio turnover rate are not annualized.
(e) Inception date is March 4, 1992. Total return and portfolio turnover rate are not annualized.
</TABLE>
STRONG ASIA PACIFIC FUND
<TABLE>
- ----------------------------------------------------------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(a)
-----------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
---------------------------------- -----------------------------------------------------
<CAPTION>
Net Realized
Net Asset and Unrealized Total In Excess In Excess Net Asset
Value, Net Gains from From Net of Net From Net of Net Value,
Beginning Investment (Losses)on Investment Investment Investment Realized Realized Total End of
of Period Income Investments Operations Income Income Gains Gains Distributions Period
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
April 30, 1997(c) $9.51 $0.01 ($0.07) ($0.06) __ __ ($0.12) __ ($0.12) $9.33
Oct. 31, 1996 9.55 0.06 0.31 0.37 ($0.06) ($0.35) __ __ (0.41) 9.51
Oct. 31, 1995(d) 9.35 0.04 0.20 0.24 (0.03) (0.01) __ __ (0.04) 9.55
Dec. 31, 1994 10.00 0.05 (0.57) (0.52) (0.01) __ __ ($0.12) (0.13) 9.35
</TABLE>
<TABLE>
STRONG ASIA PACIFIC FUND (continued)
- -----------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA
----------------------------------------------------------------
<CAPTION>
Net Ratio of Net
Assets, Ratio of Investment Average
End of Expenses Income Portfolio Commission
Total Period (In to Average to Average Turnover Rate
Return Millions) Net Assets Net Assets Rate Paid(b)
<S> <C> <C> <C> <C> <C> <C>
April 30, 1997(c) -0.7% $56 2.0%* 0.3%* 42.5% $0.0070
Oct. 31, 1996 +3.8% 72 2.3% 0.2% 91.4% 0.0104
Oct. 31, 1995(d) +2.6% 55 2.0%* 0.5%* 104.3%
Dec. 31, 1994 -5.3% 58 2.0% 0.6% 103.3%
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund outstanding for the entire period.
(b) Disclosure required, effective for reporting periods beginning after September 1, 1995.
(c) For the six months ended April 30, 1997 (Unaudited). Total return and portfolio turnover rate are not annualized.
(d) Total return and portfolio turnover rate are not annualized.
</TABLE>
28
<PAGE>
DIRECTORS
Richard S. Strong
John Dragisic
Willie D. Davis
Stanley Kritzik
Marvin E. Nevins
William F. Vogt
OFFICERS
Richard S. Strong, Chairman of the Board
John Dragisic, President
Lawrence A. Totsky, Vice President
Thomas P. Lemke, Vice President
John S. Weitzer, Vice President
Stephen J. Shenkenberg, Vice President and Secretary
John A. Flanagan, Treasurer
INVESTMENT ADVISOR
Strong Capital Management, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
DISTRIBUTOR
Strong Funds Distributors, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
CUSTODIAN
Brown Brothers Harriman & Company
40 Water Street, Boston, Massachusetts 02109
TRANSFER AGENT AND DIVIDEND-DISBURSING AGENT
Strong Capital Management, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
AUDITOR
Coopers & Lybrand L.L.P.
411 East Wisconsin Avenue, Milwaukee, Wisconsin 53202
LEGAL COUNSEL
Godfrey & Kahn, S.C.
780 North Water Street, Milwaukee, Wisconsin 53202
<PAGE>
For a prospectus containing more complete information, including management fees
and expenses, please call 1-800-368-1030. Please read it carefully before
investing or sending money. This report does not constitute an offer for the
sale of securities. Strong Funds are offered for sale by prospectus only.
[PICTURE OF TELEPHONE]
To order a free prospectus kit,
CALL 1-800-368-1030.
To learn more about our funds,
discuss an existing account,
or conduct a transaction,
CALL 1-800-368-3863.
--------------------
If you are a
Financial Professional,
CALL 1-800-368-1683
[PICTURE OF STRONG WEB SITE ON COMPUTER]
Strong On-line
www.strong-funds.com
[STRONG LOGO]
STRONG FUNDS
P.O. Box 2936 o Milwaukee, Wisconsin 53201
Strong Funds Distributors, Inc. 52109E97 97SINT
