[PIE CHART]
FUND PROFILE
July 15, 1998
THE STRONG ASIA PACIFIC FUND
THE STRONG GLOBAL HIGH-YIELD BOND FUND
THE STRONG INTERNATIONAL BOND FUND
THE STRONG INTERNATIONAL STOCK FUND
THE STRONG SHORT-TERM GLOBAL BOND FUND
This profile summarizes key information about the Funds that is included in the
Funds' prospectus. The Funds' prospectus includes additional information about
the Funds, including a more detailed description of the risks associated with
investing in the Funds that you may want to consider before you invest. You may
obtain the prospectus and other information about the Funds at no cost by
calling 1-800-368-3863 or visiting our web site at www.strong-funds.com.
[STRONG FUNDS LOGO]
STRONG FUNDS
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WHAT ARE THE FUNDS' GOALS?
The STRONG ASIA PACIFIC FUND and the STRONG INTERNATIONAL STOCK FUND seek
capital growth.
The STRONG GLOBAL HIGH-YIELD BOND FUND seeks total return by investing for a
high level of current income and capital growth.
The STRONG INTERNATIONAL BOND FUND seeks high total return by investing for
both income and capital growth.
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.
WHAT ARE THE FUNDS' INVESTMENT STRATEGIES?
The ASIA PACIFIC FUND invests primarily in stocks from companies located in
Asia or the Pacific Basin. The Fund's manager looks for companies with
potential for above-average sales and earnings growth, overall financial
strength, competitive advantages, and capable management. He may sell a holding
when it no longer has these traits.
The GLOBAL HIGH-YIELD BOND FUND invests primarily in medium- and lower-quality
bonds of U.S. and foreign issuers. The Fund will normally maintain an average
maturity of seven to twelve years. The managers look for high-yield bonds that
have the potential to improve their credit quality, and that may benefit from
changes in interest and currency-exchange rates. They may sell a holding when
it no longer shows these qualities. The managers intend to limit the Fund's
exposure to foreign currency risk by using hedging strategies.
The INTERNATIONAL BOND FUND invests primarily in medium- and higher-quality
bonds issued in foreign countries, and maintains an average maturity of four to
nine years. To select bonds, the manager first looks at overall trends in the
global economy. He then examines the countries, sectors, and individual
companies that may benefit from those trends. When a bond no longer offers
attractive return potential, the manager may sell it. The Fund is not hedged
against foreign currency fluctuations.
The INTERNATIONAL STOCK FUND selects stocks using a top-down approach that
emphasizes three key elements: country allocation, currency management, and
stock selection. The manager identifies those areas of the world that offer
above-average growth potential, then uses extensive in-house research and
in-depth analysis to pick individual stocks within those countries. The Fund
may invest in stocks from any country. When a stock's negative factors outweigh
its positive ones, the manager may sell it.
The SHORT-TERM GLOBAL BOND FUND primarily invests in medium- and higher-quality
bonds from U.S. and foreign issuers. Under normal conditions, the Fund
maintains an average maturity of three years or less. The managers intend to
limit
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the Fund's exposure to foreign currency risk by using hedging strategies.
When a bond no longer offers attractive return potential, the manager may sell
it.
Additional information about the Funds' investments is available in the Funds'
annual and semiannual reports to shareholders. These reports discuss the market
conditions and investment strategies that significantly affected the Funds'
performance during the past fiscal year. You may obtain these reports at no
cost by calling 1-800-368-3863.
WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUNDS?
GENERAL STOCK RISKS: The ASIA PACIFIC and INTERNATIONAL STOCK FUNDS' major
risks are those of investing in the stock market. That means they may experience
sudden, unpredictable declines in value, as well as periods of poor performance.
Because stock values fluctuate, when you sell your investment you may receive
more or less money than you originally invested. These risks are magnified in
foreign markets.
BOND RISKS: The GLOBAL HIGH-YIELD BOND, INTERNATIONAL BOND, and SHORT-TERM
GLOBAL BOND FUNDS' major risks are those of investing in the bond market. The
value of an investment in these Funds can be affected by movements in interest
rates, economic developments, or changes in the credit ratings of the companies
or government authorities that issue bonds. Generally, the longer a bond's
maturity, the greater its risk. Because bond values fluctuate, when you sell
your investment you may receive more or less money than you originally
invested. These risks are magnified in foreign markets.
FOREIGN AND EMERGING MARKETS: The Funds invest predominantly in securities
from foreign markets. Foreign investments involve additional risks, including
currency fluctuations, political instability, differences in financial
reporting standards, and less stringent regulation of securities markets. These
risks are greater in less-established, emerging markets.
REGIONAL RISK: The ASIA PACIFIC FUND'S investments are focused in a single
region. As a result, the value of the shares of this Fund is likely to
fluctuate more than those of a fund investing in a broader range of countries.
HIGH-YIELD BONDS: The INTERNATIONAL BOND, GLOBAL HIGH-YIELD BOND, and
SHORT-TERM GLOBAL BOND FUNDS invest in lower-quality, high-yield securities.
These bonds involve greater risks, including the possibility that the issuer of
the bond may not be able to make its payments of interest and principal. These
risks are magnified in foreign markets.
SMALLER COMPANIES: The ASIA PACIFIC and INTERNATIONAL STOCK FUNDS may invest
in the stocks of small- and medium-size companies. Small companies have
limited products, markets, or financial resources, and so their stocks present
more risks
CONTINUED..
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MAIN RISKS OF INVESTING IN THE FUNDS, CONTINUED..
than larger-company stocks. Mid-size company stocks are generally
more volatile than stocks of large companies, but tend to be less volatile than
small-company stocks.
SYNTHETIC BONDS: The STRONG INTERNATIONAL BOND FUND may create synthetic bonds
to make investments that are consistent with the Fund's strategy and goals, but
which would not be practical, feasible, or otherwise competitively priced to
acquire directly. Synthetic bonds are created by combining various investment
contracts, such as futures, options, and foreign currency forward contracts to
replicate the characteristics of certain foreign government bonds. These
synthetic bonds are exposed to the general risks of international government
bond investing. In addition, the use of derivatives may increase default risks
due to the possibility that the other party to one of these contracts will not
fulfill its obligations.
CONCENTRATED PORTFOLIO: As non-diversified Funds, the INTERNATIONAL BOND and
SHORT-TERM GLOBAL BOND FUNDS may take large positions in individual bonds. As a
result, the value of the shares of these Funds is likely to fluctuate more than
those of a fund investing in a broader range of securities.
These Funds are appropriate for investors whose financial goals are several
years in the future, and who are comfortable with the risks described here.
They are not appropriate for investors concerned primarily with principal
stability.
The return information provided illustrates how the Funds' performance can
vary, which is one indication of the risks of investing in the Funds. Please
keep in mind that the Funds' past performance does not represent how they will
perform in the future. Only Funds with at least one calendar year's returns
appear below.
CALENDAR YEAR TOTAL RETURNS
[BAR GRAPH]
Year Asia International International Short-Term
Pacific Bond Stock Global Bond
Fund Fund Fund Fund
1993 - - 47.8% -
- -------------------------------------------------------------------
1994 -5.3% - -1.6% -
- -------------------------------------------------------------------
1995 5.9% 19.1% 7.8% 10.5%
- -------------------------------------------------------------------
1996 2.1% 8.0% 8.2% 10.0%
- -------------------------------------------------------------------
1997 -31.0% -4.8% -14.2% 6.7%
FOR THE FIRST QUARTER OF 1998, THE FUNDS' RETURNS WERE: ASIA PACIFIC, 3.0%;
INTERNATIONAL BOND, -1.5%; INTERNATIONAL STOCK, 9.2%; SHORT-TERM GLOBAL BOND,
1.5%.
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BEST AND WORST QUARTERLY PERFORMANCE
FUND NAME BEST QUARTER RETURN WORST QUARTER RETURN
- ----------------------- ---------------------- ----------------------
Asia Pacific 6.9% (1st Q 1996) -22.5% (4th Q 1997)
- ----------------------- ---------------------- ----------------------
International Bond 13.2% (1st Q 1995) -5.4% (1st Q 1997)
- ----------------------- ---------------------- ----------------------
International Stock 18.7% (4th Q 1993) -15.8% (4th Q 1997)
- ----------------------- ---------------------- ----------------------
Short-Term Global Bond 3.8% (2nd Q 1995) 0.0% (4th Q 1997)
- ----------------------- ---------------------- ----------------------
AVERAGE ANNUAL TOTAL RETURNS
As of 3-31-98
FUND/INDEX 1-YEAR 5-YEAR
- -----------------------------------------------
Asia Pacific -27.99% -
- -----------------------------------------------
MSCI AP -26.46% -
- -----------------------------------------------
International Bond -0.86% -
- -----------------------------------------------
SALOMON BROS. NON- 2.03% -
U.S. WORLD GOV'T
BOND INDEX (CURRENCY
UNHEDGED)
- -----------------------------------------------
International Stock -9.98% 7.68%
- -----------------------------------------------
EAFE INDEX 18.61% 11.93%
- -----------------------------------------------
Short-Term Global Bond 6.86% -
- -----------------------------------------------
SALOMON BROS. 1-3, 7.22% -
YR. WORLD GOV'T
BOND INDEX (CURRENCY
HEDGED)
- -----------------------------------------------
The Morgan Stanley Capital International AC Asia Pacific Free ex. Japan Index
("MSCI AP") is an unmanaged index generally representative of developed and
emerging markets in the Asia/Pacific region, excluding Japan. 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 EAFE Index is an unmanaged index generally
representative of major overseas stock markets. 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.
As of March 31, 1998, the 30-day yields for the Funds were as follows: GLOBAL
HIGH-YIELD BOND, 6.1%; INTERNATIONAL BOND, 5.2%; SHORT-TERM GLOBAL BOND, 6.6%.
Without fee waivers and absorptions, the SHORT-TERM GLOBAL BOND FUND'S yield
would have been 6.5%. For current yield information, call 1-800-368-3863.
WHAT ARE THE FUNDS' FEES AND EXPENSES?
This section describes the fees and expenses that you may pay if you buy and
hold shares of the Funds.
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
The Funds are 100% no-load, so you pay no fees to buy or sell shares. There
also are no 12b-1 marketing fees.
ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
You do pay the costs of operating each Fund, which are deducted from Fund
assets. These costs are deducted before computing the daily share price or
making distributions. As a result, they don't appear on your account statement,
but instead reduce the amount of total return you receive. Because the GLOBAL
HIGH-YIELD BOND FUND began operations on November 30, 1997, the expenses other
than management fees have been estimated in the following chart.
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ANNUAL FUND OPERATING EXPENSES (AS A PERCENT OF AVERAGE NET ASSETS)
FUND MANAGEMENT FEES OTHER EXPENSES TOTAL EXPENSES
- -------------------- ---------------- ---------------- ----------------
Asia Pacific 1.00% 1.00% 2.00%
- -------------------- ---------------- ---------------- ----------------
Global High-Yield 0.70% 0.89% 1.59%
- -------------------- ---------------- ---------------- ----------------
International Bond 0.70% 0.83% 1.53%*
- -------------------- ---------------- ---------------- ----------------
International Stock 1.00% 0.61% 1.61%
- -------------------- ---------------- ---------------- ----------------
Short-Term Global 0.625% 0.39% 1.02%*
- -------------------- ---------------- ---------------- ----------------
*DURING THE FISCAL YEAR ENDED OCTOBER 31, 1997, THE ADVISOR WAIVED ITS
MANAGEMENT FEE AND ABSORBED CERTAIN EXPENSES FOR THE SHORT-TERM GLOBAL BOND AND
THE INTERNATIONAL BOND FUNDS. THE ACTUAL TOTAL OPERATING EXPENSES FOR THE
SHORT-TERM GLOBAL BOND FUND AFTER WAIVERS AND ABSORPTIONS WERE 0.71% AND FOR
THE INTERNATIONAL BOND FUND THEY TOTALED 0.71%.
EXAMPLE: This example is intended to help you compare the cost of investing in
the Funds with the cost of investing in other mutual funds. The example assumes
that you invest $10,000 in the Funds for the time periods indicated, and then
redeem all of your shares at the end of those periods. The example also assumes
that your investment has a 5% return each year and that the Funds' operating
expenses remain the same. Although your actual costs may be higher or lower,
based on these assumptions your costs would be:
FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------
Asia Pacific $203 $627 $1,078 $2,327
- ------------------------------------------------------------
Global High-Yield Bond $162 $502 $866 $1,889
- ------------------------------------------------------------
International Bond $156 $483 $834 $1,824
- ------------------------------------------------------------
International Stock $164 $508 $876 $1,911
- ------------------------------------------------------------
Short-Term Global $104 $325 $563 $1,248
Bond
WHO ARE THE FUNDS' INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
Strong Capital Management serves as the investment advisor for the Funds.
Anthony Cragg manages the ASIA PACIFIC FUND. He joined Strong as a portfolio
manager in April 1993, and has 18 years of investment experience.
Shirish Malekar manages the INTERNATIONAL BOND and SHORT-TERM GLOBAL BOND
FUNDS, and co-manages the GLOBAL HIGH-YIELD BOND FUND. Before joining Strong as
a portfolio manager in January 1994, he was an international bond portfolio
manager at Pacific Investment Management Company for three years. He has 11
years of investment experience.
Jeffrey A. Koch co-manages the GLOBAL HIGH-YIELD BOND FUND. He joined Strong as
a portfolio manager and securities analyst in June 1989 and has eight years of
investment experience. John T. Bender also co-manages the GLOBAL HIGH-YIELD
BOND FUND. He joined Strong's accounting department in February 1987, became a
trader in November 1988, an analyst in October 1990, and a portfolio co-manager
in March 1996. He has nine years of investment experience.
David Lui manages the INTERNATIONAL STOCK FUND. Before joining Strong as a
portfolio manager in May 1998, he was an international portfolio manager at
Phoenix
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Duff & Phelps for three years. From 1993 to 1995, he was vice president
of Asian equities at Alliance Capital Management. He has eight years of
investment experience.
HOW CAN I BUY FUND SHARES?
There are several ways you can open a new account.
- - BY MAIL: Complete and sign the application. Make your check or money order
payable to Strong Funds. Mail it to Strong Funds, P.O. Box 2936, Milwaukee,
WI 53201.
- - BY PHONE OR BY INTERNET: If you are a current Strong Funds shareholder and
choose exchange privileges, you can exchange shares from one Strong account
to open another.
You can also open an account in person or through a broker-dealer.
The minimum initial investment is $2,500 for a regular account, $500 for an
Education IRA, and $250 for an IRA or transfer or gift to minor account. If
you establish an Automatic Investment Plan (not available for Education IRAs)
of $50 or more per month, these minimums are waived. In all cases, the minimum
for subsequent investments is $50. (For minimums on other retirement plans,
call 1-800-368-2882.)
HOW CAN I SELL FUND SHARES?
There are several ways you can redeem (sell) shares from the Fund.
- - BY MAIL: You can write a letter of instruction, including your account
number, the dollar amount or number of shares you wish to redeem, each
owner's name, your street address, and the signature of each owner. Mail it
to Strong Funds, P.O. Box 2936, Milwaukee, WI 53201.
- - BY PHONE OR BY INTERNET: If you choose redemption privileges, you can sell
shares by phone or through our web site.
You can also redeem shares in person, through a systematic withdrawal plan, or
through a broker-dealer.
DO THE FUNDS PAY OUT DIVIDENDS OR CAPITAL GAINS? HOW ARE THEY TAXED?
The Funds may earn income from dividends on the stocks or interest on the bonds
in their portfolios, and may realize capital gains from appreciation on their
holdings. The GLOBAL HIGH-YIELD BOND and SHORT-TERM GLOBAL BOND FUNDS intend to
declare income monthly and capital gains quarterly. The INTERNATIONAL BOND FUND
intends to declare income and capital gains quarterly. The ASIA PACIFIC and
INTERNATIONAL STOCK FUNDS intend to declare income and capital gains annually.
CONTINUED ON BACK..
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Unless you elect otherwise, distributions of income and capital gains will be
automatically reinvested in the Fund that paid them. These distributions are
taxable regardless of whether you reinvest them or take them in cash.
Income is taxable at ordinary federal income tax rates. Capital-gains
distributions are taxed at rates based on how long the assets were held by the
Fund. If a Fund's income distributions exceed its taxable income in any year
(which is sometimes the result of losses related to fluctuation in foreign
currency), all or a portion of the Fund's dividends may be treated as a return
of capital to shareholders. Although a return of capital is not taxed, it will
reduce the price of your shares. To minimize the possibility of a return of
capital, the Fund may adjust its income distributions to take currency
fluctuations into account; as a result, your income distributions from the Fund
may vary or be suspended from time to time.
Under federal law, the interest income earned from U.S. Treasury securities is
exempt from state and local taxes. All states allow mutual funds to pass
through that exemption to their shareholders, although there are conditions to
this exemption in some states. You will be notified annually of the percentage
of Fund's income that comes from U.S. government securities. It is possible that
losses from foreign currency transactions late in the year could convert a
portion of these distributions to a non-taxable return of capital.
After the end of each calendar year, Strong sends shareholders a statement of
the Funds' income and capital gains distributions to assist in tax preparation.
WHAT SERVICES DOES STRONG FUNDS PROVIDE?
Strong offers you a variety of ways to get information, monitor your
investments, and buy and sell shares.
- - Personal service 24 hours a day, 7 days a week
- - Automated telephone service
- - Online transaction services
- - Automatic investment plans
- - Payroll direct deposit
- - Retirement plans for individuals and corporations
Strong representatives can tell you more about each of these services, and can
also give you further information about buying and selling shares. Just call
1-800-368-3863 anytime, day or night.
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[STRONG LOGO]
STRONG FUNDS
P.O. Box 2936 Milwaukee, Wisconsin 53201
Strong Funds Distributors, Inc. 7899E98 IL798P
