THE STRONG
----------
INTERNATIONAL
FUNDS
================================
ANNUAL REPORT o OCTOBER 31, 1998
================================
[PHOTO OF STRONG FUNDS BUILDING]
The Strong Asia Pacific Fund
The Strong Foreign MajorMarkets(sm) Fund
The Strong International Stock Fund
The Strong Overseas Fund
The Strong Global High-Yield Bond Fund
The Strong International Bond Fund
The Strong Short-Term Global Bond Fund
[STRONG LOGO]
STRONG FUNDS
<PAGE>
LETTER FROM THE CHAIRMAN
Dear Strong Investor,
The financial markets were moving along smoothly last summer when they
suddenly struck an air pocket. After three straight years of 20%-plus returns,
people had grown accustomed to their investments moving steadily upward. The
collapse of the Asian and Russian economies brought us back to earth in a hurry.
Fortunately, our financial markets have been resilient. The turbulence we
encountered last summer, while upsetting, turned out to be short-lived. As of
Thanksgiving week, both the Dow and the S&P indexes had hit all-time highs.
The rebound in financial markets came because the American economy is
fundamentally strong. The U.S. accounts for roughly 25% of the world's GDP.
Inflation is negligible, interest rates are falling, and unemployment is low. If
you still harbor any doubt about how well the American economy stacks up against
the rest of the world, take a trip to Asia (as I did in August) or, better yet,
Russia. America, you'll soon conclude, is sitting in the economic catbird seat.
Meanwhile, it also helps to remember that Asia was occupying the economic
high ground not too many months ago. When bust follows boom, it arrives swiftly,
without warning, and absolutely without mercy.
It is at times like these--good times--when it makes sense to step back and
assess your financial affairs. It's important to do so when things are good
because, when things are bad, fear has a way of overpowering common sense. So,
as you review your holdings, consider:
o Since 1926, the stock market has averaged an 11% return annually. The last
three years -- maybe four if 1998 finishes strong--have been a historical
aberration.
o Lately, most of us have loaded up on common stocks, giving inadequate
attention to bonds and cash. We can help you bring "balance" to your
portfolio with our new Guide to Building a Strong Portfolio.
o In recent years, big Blue Chip stocks have dominated. It might be smart to
take a long look at small- and mid-cap company stocks. Relative to large
caps, they are cheap. Strong has a depth of expertise in small- and mid-cap
stocks.
o Inflation is low and interest rates may be headed lower yet. That creates
an attractive climate for bonds. I suggest you take a good look at
intermediate- and long-term, high quality bonds, both corporate and
government.
So, let last summer's "air pocket" serve as a reminder that nothing goes
up--uninterrupted --forever. The market's recent run defies history. There have
been turbulent times before and there will be disruption again. But now, while
things are good, review your investments. If you need help, call the Strong
Portfolio Specialists.
At your convenience, of course.
/s/Dick
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THE STRONG
----------
INTERNATIONAL
FUNDS
================================
ANNUAL REPORT o OCTOBER 31, 1998
================================
TABLE OF CONTENTS
INVESTMENT REVIEWS
The Strong Asia Pacific Fund ................................... 2
The Strong Foreign MajorMarkets(sm) Fund ....................... 4
The Strong International Stock Fund ............................ 6
The Strong Overseas Fund ....................................... 8
The Strong Global High-Yield Bond Fund .........................10
The Strong International Bond Fund .............................12
The Strong Short-Term Global Bond Fund .........................14
FINANCIAL INFORMATION
Schedules of Investments in Securities
The Strong Asia Pacific Fund ..........................16
The Strong Foreign MajorMarkets(sm) Fund ..............17
The Strong International Stock Fund ...................18
The Strong Overseas Fund ..............................19
The Strong Global High-Yield Bond Fund ................20
The Strong International Bond Fund ....................21
The Strong Short-Term Global Bond Fund ................22
Statements of Assets and Liabilities ...........................24
Statements of Operations .......................................25
Statements of Changes in Net Assets ............................26
Notes to Financial Statements ..................................28
FINANCIAL HIGHLIGHTS ....................................................32
REPORT OF INDEPENDENT ACCOUNTANTS .......................................34
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============
THE STRONG ASIA PACIFIC FUND
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FUND HIGHLIGHTS
o The Strong Asia Pacific Fund returned -25.12% for the fiscal year ended
October 31, 1998.
o For much of the year, we responded to the extremely hostile environment in
Asian markets by adopting a defensive stance. The Fund held a high cash
position and focused on the few companies and markets that appeared to be
best weathering the region's storms.
o It proved very difficult to entirely dodge the region's losses. While
largely avoiding damage in Hong Kong and Indonesia, the Fund was hurt by
declines in our more-favored markets, such as Singapore and Thailand.
...................................
AVERAGE ANNUAL TOTAL RETURNS
As of 10-31-98
1-year -25.12%
3-year -15.18%
Since Inception -10.24%
(on 12-31-93)
...................................
INVESTMENTS
BY COUNTRY
Based on net assets as of 10-31-98
COUNTRY % OF NET ASSETS
.............................
Japan 19.7%
Singapore 17.5%
Australia 10.5%
Hong Kong 10.0%
Thailand 9.2%
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
PERSPECTIVES
FROM THE MANAGER
/s/ Anthony Cragg
Anthony Cragg
Portfolio Manager
...............................................................................
For most of the past year, we faced exceedingly difficult markets and determined
that a defensive stance was most appropriate, moving heavily into cash. Toward
the end of the year, however, we began to see more positive signs. In September
and October, we took the Fund from close to its maximum allowable cash position
to being as close to fully invested as was practical. We took advantage of
investment bargains brought about by the long and indiscriminate bear market,
positioning the Fund for the recovery that we are increasingly hopeful has
already begun. While reinvesting, we emphasized Singapore and Thailand. Toward
the very end of the reporting period, we built up our positions in Korea and
Indonesia.
We believe Southeast Asian economies are likely to remain in their present slump
for at least another year. However, we began moving now because stocks often go
up in anticipation of an economic improvement well ahead of its actual
occurrence. The region's economies have recently stopped getting worse and, in
some cases, appear to be improving. This should be significant enough to
convince investors that they no longer need to avoid Asia entirely, and that
they should perhaps begin investing there.
The risk/reward equation in Asia continues to look more and more favorable.
................................................................................
COUNTRIES WHERE GOVERNMENTS AND THE PRIVATE SECTOR HAVE TAKEN APPROPRIATE STEPS
TO REMEDY THEIR PROBLEMS SHOULD OUTPACE THOSE RESISTING REFORM.
................................................................................
- --------------------------------------------------------------------------------
* 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 U.S.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.
2
<PAGE>
Of course, countries where governments and the private sector have taken
appropriate steps to remedy their problems should outpace those resisting
reform.
This is not to say that rallies in Asian markets will be easy, uniform or in a
straight line. The markets are likely to be volatile as lingering bears, looking
at the past and present, clash with bullish investors who are viewing the region
with an eye to the future. Despite likely volatility, we think the basic level
of risk associated with Asian investing has been significantly reduced by a
number of factors: hedge funds have largely exited the market, interest rates
are lower, and local currencies have stabilized. This should allow the long-term
potential of the region to once again shine through the gloom.
After a long and difficult time for Asian stock markets, we believe that
investors' patience and perseverance will finally be rewarded over the coming
months and years. We are quietly confident that October's rise of 15.29% for the
Strong Asia Pacific Fund was not a flash in the pan, but an early sign of better
investment returns to come.
We appreciate your continued investment in the Strong Asia Pacific Fund. Thank
you for your support.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 12-31-93 to 10-31-98
[GRAPH]
THE STRONG ASIA Lipper Pacific Region
PACIFIC FUND MSCI AP* 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 9,994
12-97 7,071 6,835 7,278
10-98 5,931 6,005 6,482
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of 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.
- --------------------------------------------------------------------------------
YOUR FUND'S APPROACH
THE STRONG ASIA PACIFIC FUND INVESTS PRIMARILY IN THE STOCKS OF COMPANIES
LOCATED IN ASIA AND THE PACIFIC BASIN. THE AIM IS TO GIVE INVESTORS EXPOSURE TO
A DYNAMIC AND POTENTIALLY REWARDING REGION OF THE WORLD. WE FOCUS ON FINDING
HIGH-QUALITY COMPANIES WHOSE SHARES OFFER OUTSTANDING VALUE. LEVELS OF
INVESTMENT IN INDIVIDUAL COUNTRIES ARE RAISED AND LOWERED ACCORDING TO THE
PARTICULAR ECONOMIC OUTLOOK OF EACH ONE. THE FUND'S MANAGEMENT USES ITS
EXPERIENCE AND CONTACTS TO ASSEMBLE A PORTFOLIO SOMEWHAT BROADER AND BOLDER THAN
THAT OF A CONVENTIONAL FUND OR INDEX.
................................................................................
MARKET HIGHLIGHTS
o Over the 12 months ended October 31, 1998, Asia wrestled with collapsing
economic and export growth, massive currency declines, huge falls in
property prices, mushrooming bad debt, and serious problems in financial
systems. The Fund's benchmark, the Morgan Stanley Capital International AC
Asia Pacific Free ex. Japan Index returned -18.90% for the year.*
o Countries such as Malaysia and Indonesia also experienced social unrest as
citizens reacted angrily to government corruption and plummeting incomes
and living standards.
o The worst-hit markets were China, Indonesia, and Malaysia, all down as much
as 50% in dollar terms at one point. Japan and Taiwan fared comparatively
better.
3
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========================
THE STRONG FOREIGN MAJORMARKETS(SM) FUND
-----------========================-----
FUND HIGHLIGHTS
o From its June 30, 1998 inception through October 31, 1998, the Fund
returned -6.90%. Although the Fund showed a loss for this four-month
period, it has held up well against the average for similar funds.
o Over this period, the Fund benefited from being slightly overweighted in
European stocks and underweighted in stocks from Japan and other Asian
markets. Some of the stocks in the portfolio, particularly some from the
United Kingdom, rose as a mergers-and-acquisitions frenzy spread across the
Atlantic.
o Overall performance is behind the benchmark's because of the higher trading
costs associated with a new, smaller fund.
................................................................................
TOTAL RETURN(1)
As of 10-31-98
Since Inception -6.90%
(on 6-30-98)
................................................................................
INVESTMENTS
BY COUNTRY
Based on net assets as of 10-31-98
COUNTRY % OF NET ASSETS
................................................................................
United Kingdom 20.2%
Japan 20.0%
Germany 11.5%
France 8.9%
Switzerland 7.7%
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
PERSPECTIVES
FROM THE MANAGER
/s/ Shirish Malekar
Shirish Malekar
Portfolio Manager
................................................................................
After a strong first half of 1998, stock markets around the world continued to
rally until mid-July. Almost all major European equity markets are in positive
territory for the year, but have seen significant corrections since their peaks
in mid-July. Perceived and actual weakness in their economies, pressure on
corporate earnings, and repercussions from the Russian debt default have led to
these corrections. For the period from July 1 through October 31, most European
markets were down 25% to 40% and major Asian markets were down about 15%.
There are several ways that the turmoil in emerging markets spread to developed
markets as well. First, the currencies of commodity-exporting countries--such as
Australia, Canada, New Zealand, and Norway--depreciated rapidly. To slow down
this decline, Canada and Norway sharply raised interest rates. Second, many
banks in major countries have exposure to emerging markets. The problems in
less-developed nations rattled these institutions, presenting a threat to the
stability of the financial system at home. Consequently, financial stocks were
hit hard around the globe. Third, investor confidence was shaken by both of the
previously mentioned factors.
................................................................................
FOR THE PERIOD FROM JULY 1 THROUGH OCTOBER 31, MOST EUROPEAN MARKETS WERE DOWN
25% TO 40% AND MAJOR ASIAN MARKETS WERE DOWN ABOUT 15%.
................................................................................
- --------------------------------------------------------------------------------
* The MSCI EAFE(TM) is an unmanaged index generally representative of major
overseas stock markets. MSCI EAFE(TM) data is U.S. 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 Standard & Poor's Micropal. Source of the Lipper index data
is Lipper Analytical Services, Inc.
1 Total return is not annualized and measures aggregate change in the value
of an investment in the Fund, assuming reinvestment of dividends.
4
<PAGE>
There are fears that this could still result in a decline in consumer
spending--though whether the downturns will in fact have this impact on the real
economy remains to be seen.
The European and Japanese currencies reversed their downtrend versus the U.S.
dollar. The recent currency appreciation has softened the impact of foreign
stock-market declines when returns are expressed in U.S. dollar terms.
Looking forward, we anticipate maintaining our portfolio strategy. Our
stock-selection process and, to a lesser degree, our decisions regarding the
countries we choose to emphasize and de-emphasize will drive the Fund's
performance relative to its benchmark. We intend to rebalance the portfolio once
a year, though we may make smaller changes once a quarter.
Thank you for your investment in the Strong Foreign MajorMarkets Fund. We look
forward to earning your continued confidence.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 6-30-98 to 10-31-98
[GRAPH]
THE STRONG FOREIGN Lipper International
MAJORMARKETS(SM)FUND MSCI EAFE(TM)* Funds Index*
6-98 10,000 10,000 10,000
7-98 9,970 10,101 10,153
8-98 8,760 8,850 8,693
9-98 8,470 8,579 8,422
10-98 9,310 9,473 9,042
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of 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.
- --------------------------------------------------------------------------------
YOUR FUND'S APPROACH
THE STRONG FOREIGN MAJORMARKETS(SM) FUND PURSUES CAPITAL GROWTH BY INVESTING
PRIMARILY IN STOCKS FROM COMPANIES IN ESTABLISHED FOREIGN MARKETS. STOCKS ARE
SELECTED FROM EACH COUNTRY IN ITS BENCHMARK INDEX (THE MSCI EUROPE, AUSTRALASIA,
AND FAR EAST (EAFE) INDEX). THE FUND'S INVESTMENT PROCESS SCREENS FOR STOCKS
WITH BETTER FUNDAMENTAL CHARACTERISTICS THAN ARE TYPICAL FOR OTHER COMPANIES IN
THEIR COUNTRY. MANAGEMENT ALSO LOOKS FOR STOCKS THAT ARE CHEAPER THAN THE NORM
IN THEIR MARKET. THE PORTION OF ASSETS ALLOCATED TO EACH COUNTRY WILL BE WITHIN
20% OF ITS WEIGHTING IN THE EAFE INDEX.
................................................................................
MARKET HIGHLIGHTS
o The MSCI EAFE index returned -5.27% in the four-month period from the
Fund's inception through October 31, 1998.
o After a strong first half, global equity markets peaked in mid-July and
corrected severely in the subsequent three months. Some European stock
markets were down almost 50% from peak to trough. The Japanese stock market
return was positive but mainly due to the yen's appreciation versus the
U.S. dollar.
o The Russian and Asian crises affected global stock markets in a number of
ways. The financial and commodity-producing sectors were hardest-hit
worldwide.
5
<PAGE>
===================
THE STRONG INTERNATIONAL STOCK FUND
-----------===================-----
FUND HIGHLIGHTS
o The Fund returned -21.44% for the 12 months ended October 31, 1998.
o New management came to the Fund in May 1998. Major changes included
reducing the number of stocks, cutting emerging-market exposure, and
eliminating closed-end funds and illiquid stocks.
o The Fund was overweighted in Western Europe, as well as in banks,
insurance, and technology. These positions hurt performance in September
and October.
o The Fund stayed fully invested in stocks. We did not sell out of companies
we continue to believe in, even if they were hurt by the recent downturns.
................................................................................
AVERAGE ANNUAL TOTAL RETURNS
As of 10-31-98
1-year -21.44%
3-year -6.64%
5-year -1.82%
Since Inception 2.83%
(on 3-4-92)
................................................................................
INVESTMENTS
BY COUNTRY
Based on net assets as of 10-31-98
COUNTRY % OF NET ASSETS
................................................................................
Hong Kong 26.3%
United Kingdom 26.0%
France 7.8%
Netherlands 7.4%
Italy 6.2%
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
PERSPECTIVES
FROM THE MANAGER
/s/ David Lui
David Lui
Portfolio Manager
................................................................................
Although fears of a global recession at times drove the markets, we don't
believe the world will fall into one. And even if a recession were to come
about, we believe that global central banks will do their utmost to maintain a
stable economic environment, primarily by making cuts in benchmark interest
rates. Therefore, we anticipate that a slow growth environment will prevail over
the gloom-and-doom scenario some observers have forecast recently.
Despite recent missteps, Western Europe appears likely to remain one of the most
attractive areas to invest in during 1999 for several reasons:
1. The launch of the European Monetary Union on January 1, 1999, which should
ease international trade.
2. Increasing stock buybacks among European companies, which can boost stock
prices and increase shareholder value.
3. Continued restructuring, consolidation, and deregulation. The drive for
efficiency that swept through the U.S. in the late 1980s and early 1990s is
just beginning in Europe.
4. Welfare reforms that will reduce the burden on national treasuries.
We also believe interest rates will continue to fall over the next few months,
which bodes well for the battered Asian economies. We believe the most
attractive Asian market for the near future is Hong Kong, because:
1. Its stock market is centered on real estate and banking. Both industries
can respond very favorably to declining interest rates.
................................................................................
WE ANTICIPATE THAT A SLOW GROWTH ENVIRONMENT WILL PREVAIL OVER THE
GLOOM-AND-DOOM SCENARIO SOME OBSERVERS HAVE FORECAST RECENTLY.
................................................................................
- --------------------------------------------------------------------------------
* The MSCI EAFE(TM) is an unmanaged index generally representative of major
overseas stock markets. MSCI EAFE(TM) data is U.S. 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 Standard & Poor's Micropal. Source of the Lipper index data
is Lipper Analytical Services, Inc.
6
<PAGE>
2. There are fewer shares available on the Hong Kong stock market in the wake
of the government's recent substantial purchases. This tightened supply
could move prices up.
3. The recent strength of the Japanese yen significantly reduced the threat of
a currency devaluation.
Over the next six to 12 months, we intend to modify our weighting in Western
Europe, pulling back from our previous heavy emphasis on this region. We remain
firm believers in the region's bright prospects, but we also believe that
declining interest rates may benefit Southeast Asian markets. As a result, we're
investing more in the Far East. And although our investments in real estate,
bank, and insurance stocks hurt the Fund in September and early October, we
believe the current interest-rate climate will work to their benefit. Thus we're
maintaining our holdings in these areas.
After a month and a half of dire predictions by various market gurus and
strategists, the sun has returned to global stock markets. While there may be a
slowdown in the global economy, we believe rumors of its demise were greatly
exaggerated.
Thank you for your investment with the Strong International Stock Fund. We
appreciate the confidence you've shown us.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 3-4-92 to 10-31-98
[GRAPH]
THE STRONG INTERNATIONAL Lipper International
STOCK FUND MSCI EAFE(TM)* 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
12-97 14,294 16,264 17,712
10-98 12,040 17,860 18,546
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of 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.
- --------------------------------------------------------------------------------
YOUR FUND'S APPROACH
THE STRONG INTERNATIONAL STOCK FUND SEARCHES OUTSIDE THE U.S. FOR STOCKS THAT
APPEAR TO HAVE STRONG GROWTH POTENTIAL RELATIVE TO THEIR RISK. OUR THREE-STEP
INVESTMENT PROCESS INVOLVES COUNTRY ALLOCATION, INTENSIVE RESEARCH, AND
CURRENCY MANAGEMENT. WE EXAMINE THE ECONOMIC OUTLOOK OF INDIVIDUAL COUNTRIES
TO DECIDE HOW MUCH OF THE FUND'S ASSETS--IF ANY-- TO INVEST IN EACH ONE. THEN WE
CHOOSE INDIVIDUAL STOCKS BASED ON RIGOROUS ANALYSIS INCORPORATING INTERVIEWS
WITH A COMPANY'S LEADERSHIP. WE MAKE TAX EFFICIENCY A PRIORITY AND SOMETIMES
INVEST TO MANAGE RISK FROM FLUCTUATIONS IN FOREIGN CURRENCY VALUES.
................................................................................
MARKET HIGHLIGHTS
o The MSCI Europe, Australasia, and Far East Index, the Fund's benchmark,
returned 9.65% for the 12 months through October 31, 1998.*
o Western Europe fell hard in September and early October after accumulating
strong gains through July.
o In September and October, Japanese stocks benefited from the yen's 33%
surge in value. The Hong Kong government supported its country's markets by
using currency reserves to purchase stocks.
o Concerns following Russia's default on its debt, Latin American turmoil,
and hedge-fund crises drove investors out of financial-services companies.
Fear of a recession, which could cut corporate spending, led investors to
shun high-tech firms.
7
<PAGE>
========
THE STRONG OVERSEAS FUND
-----------========-----
FUND HIGHLIGHTS
o The Fund returned -18.00% for the four months from its inception on June
30, 1998 through October 31, 1998.
o The Fund was overweighted in Western Europe, as well as in banks,
insurance, and technology. These positions helped the Fund in July and
August, but were a drag on performance in September and October.
o The Fund stayed fully invested in stocks, in keeping with our long-term
perspective. We did not sell out of companies that we continue to believe
in, even if their market prices suffered in the recent downturns.
................................................................................
AVERAGE ANNUAL
TOTAL RETURNS
As of 10-31-98
Since Inception -18.00%
(on 6-30-98)
................................................................................
INVESTMENTS
BY COUNTRY
Based on net assets as of 10-31-98
COUNTRY % OF NET ASSETS
................................................................................
United Kingdom 26.5%
Hong Kong 23.7%
Italy 11.5%
Finland 8.0%
Netherlands 6.7%
Please see the Schedule of Investments in Securities for a complete listing of
the Fund's portfolio.
PERSPECTIVES
FROM THE MANAGER
/s/ David Lui
David Lui
Portfolio Manager
- --------------------------------------------------------------------------------
Driving the global markets over the past few months were fears of a global
recession--fears that we don't share. Even if a recession were to develop, it's
our belief that global central banks will strive to maintain a stable economic
environment by cutting benchmark interest rates.
Despite its recent difficulties, we believe Western Europe will remain one of
the most attractive areas to invest in for 1999 because:
1. International trade may grow, helped along by the European Monetary Union,
which launches on January 1, 1999.
2. European companies are increasingly buying back shares, boosting stock
prices and increasing shareholder value.
3. The drive for efficiency that improved corporate performance in the U.S.
through the late 1980s and early 1990s is just beginning in Europe. We
expect to see more restructuring, consolidation, and deregulation.
4. Changes in social welfare systems will reduce the burden on national
treasuries, fostering lower interest rates.
We believe interest rates will fall further over the next few months. That could
help the recovery of battered Asian economies. The region will need considerable
time and resources to recover. In the near future, we believe that Hong Kong may
be an attractive market for investing--certainly the most attractive in
Asia--for several reasons:
................................................................................
DRIVING THE GLOBAL MARKETS OVER THE PAST FEW MONTHS WERE FEARS OF A GLOBAL
RECESSION--FEARS THAT WE DON'T SHARE.
................................................................................
- --------------------------------------------------------------------------------
* The MSCI EAFE(TM) is an unmanaged index generally representative of major
overseas stock markets. MSCI EAFE(TM) data is U.S. 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 Standard & Poor's Micropal. Source of the Lipper index data
is Lipper Analytical Services, Inc.
8
<PAGE>
1. With interest rates declining, the region's focus on real estate and
banking should be in its favor. Those industries usually respond very
positively to falling rates.
2. Tight supply of shares on the Hong Kong stock market--the result of the
government's recent buying--can help push stock prices upward.
3. There is far less threat of a currency devaluation, thanks to the Japanese
yen's recent recovery.
We're still big believers in Western Europe's prospects, but as other
opportunities are emerging, we intend to modify our position there over the next
six to 12 months. The declining interest rates that we anticipate may benefit
Southeast Asian markets in particular, so we believe this is a good time to
invest more in the Far East, particularly Hong Kong. Falling interest rates
benefit real estate, bank, and insurance stocks, so we're maintaining our
investments in them.
There've been many dire predictions about the global stock markets, but they
appear to have been wrong. Although some sun is finally shining through, we
won't be surprised if there's a slowdown in the global economy--but that's very
different from expecting its demise.
Thank you for investing in the Strong Overseas Fund. We look forward to earning
your confidence in the months and years ahead.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 6-30-98 to 10-31-98
[GRAPH]
THE STRONG Lipper International
OVERSEAS FUND MSCI EAFE(TM)* Funds Index*
6-98 10,000 10,000 10,000
7-98 10,570 10,101 10,153
8-98 9,290 8,850 8,693
9-98 8,370 8,579 8,422
10-98 8,200 9,473 9,042
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of 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.
- --------------------------------------------------------------------------------
YOUR FUND'S APPROACH
THE STRONG OVERSEAS FUND SEARCHES OUTSIDE THE U.S. FOR STOCKS THAT APPEAR TO
HAVE STRONG GROWTH POTENTIAL RELATIVE TO THEIR RISK. OUR THREE-STEP INVESTMENT
PROCESS INVOLVES COUNTRY ALLOCATION, INTENSIVE RESEARCH, AND CURRENCY
MANAGEMENT. WE STUDY INDIVIDUAL COUNTRIES TO DECIDE WHETHER, AND HOW MUCH, TO
INVEST IN EACH. STOCKS ARE CHOSEN THROUGH RIGOROUS ANALYSIS THAT INCLUDES
INTERVIEWS WITH COMPANY LEADERS. TAX EFFICIENCY IS A PRIORITY, AND THE FUND
SOMETIMES INVESTS TO MINIMIZE RISK FROM FOREIGN-CURRENCY FLUCTUATIONS. AT
TIMES, THE FUND MAY TAKE AGGRESSIVE POSITIONS IN COMPANIES AND COUNTRIES.
................................................................................
MARKET HIGHLIGHTS
o The MSCI Europe, Australasia, and Far East Index, the Fund's bench-mark,
returned -5.27% for the four months from the Fund's inception through
October 31, 1998.*
o Western Europe, whose markets had prospered while emerging markets tumbled,
fell hard in September and early October.
o In September and October, Japanese stocks benefited from the yen's 33%
surge in value. Also, the Hong Kong government supported its country's
equity markets by purchasing stocks with currency reserves.
o Financial-services companies fell in the wake of Russia's default on its
debt, Latin American turmoil, and hedge-fund crises. High-tech firms also
tumbled, as investors feared a recession could cut corporate spending.
9
<PAGE>
======================
THE STRONG GLOBAL HIGH-YIELD BOND FUND
-----------======================-----
FUND HIGHLIGHTS
o The Fund returned -11.85% for the six months ended October 31, 1998, and
-7.99% for the nine-month period since its inception on January 31, 1998.
o The Fund outperformed its benchmark, although its overall performance was
negative. This relative outperformance is attributable to the Fund's
defensive posture, which kept it out of some of the most troubled markets:
Russia, Venezuela, and Brazil.
o Our allocation to the U.S. high-yield market also somewhat cushioned
the Fund's returns.
................................................................................
TOTAL RETURN(1)
As of 10-31-98
Since Inception -7.99%
(on 1-31-98)
................................................................................
PORTFOLIO STATISTICS
As of 10-30-98
30-DAY ANNUALIZED
YIELD(2) 7.22%
Average
credit quality(3) BB
Average maturity(4) 5.0 years
PERSPECTIVES
FROM THE MANAGERS
/s/ John T. Bender /s/ Shirish Malekar /s/ Jeffrey A. Koch
John T. Bender Shirish Malekar Jeffrey A. Koch
Portfolio Co-manager Portfolio Co-manager Portfolio Co-manager
................................................................................
In the past nine months, we witnessed economic crises and panics around the
world that one might expect to happen perhaps once in a lifetime. First, the
Asian financial crisis sparked a political crisis in Indonesia, and has since
led to changes in governments across most of the region. As problems in that
part of the world continued to unfold, Russia defaulted on almost $120 billion
of debt. The uncertainty in these two large regions led to continued increases
in the yields paid on higher-risk investments. As one would expect, the
volatility was the greatest among emerging-market securities.
Although the Fund has a negative return so far, it has been more stable than
many other funds that invest in emerging-market assets. There are two primary
reasons for this: First, our fixed-income management team has been working to
upgrade the credit quality of the portfolio throughout the year. Also, later in
the year we emphasized higher-quality Latin American countries such as Mexico
and Argentina, while keeping our distance from Russia, Venezuela, and Brazil.
This helped the Fund avoid the catastrophic declines in Russian and Venezuelan
debt prices in particular.
In addition, we gradually moved assets from emerging markets into high-yield
issues from the U.S. As emerging markets' losses spread, investors in U.S. bonds
became much more risk averse, leading to a decline in domestic high-yield bond
prices that was far greater than any decline in domestic credit quality.
................................................................................
IN THE PAST NINE MONTHS, WE WITNESSED ECONOMIC CRISES AND PANICS AROUND THE
WORLD THAT ONE MIGHT EXPECT TO HAPPEN PERHAPS ONCE IN A LIFETIME.
................................................................................
- --------------------------------------------------------------------------------
* The Global High-Yield Bond Index is comprised fo 65% J.P. Morgan Emerging
Markets Bond Index + and 35% Lehman Brothers High-Yield Bond Index. The
J.P. Morgan Emerging Markets Bond Index + is an unmanaged index generally
representative of emerging market debt obligations. The Lehman Brothers
High-Yield Bond Index is an unmanaged index generally representitive of
corporate bonds rated below investment-grade. The Lipper Global Income
Funds Index is an equally-weighted performance index of the largest
qualifying funds in this Lipper category. Source of the Lehman index data
is Bloomberg and Standard & Poor's Micropal. Source of the Lipper index
data is Lipper Analytical Services, Inc.
10
<PAGE>
As a result, the aftermath of the Russia debt default and subsequent stock
market declines around the world has made U.S. high-yield bonds very attractive.
During the financial crisis and panics, our primary concern in approaching these
markets over the near term has been preservation of capital. The fiscal,
economic, and political landscape in emerging markets has not improved--in fact,
it has continued to deteriorate. In response, we have adopted a very defensive
posture. Although the recent interest-rate cut by the Federal Reserve has been
of short-term benefit, to truly correct problems in emerging markets will
require more time, capital, and appropriate policy changes. Therefore, we will
continue to position the Fund in a defensive manner until credible policy
responses begin to develop.
Thank you for your investment in the Strong Global High-Yield Bond Fund. We look
forward to helping you pursue your important financial goals in the years to
come.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 1-31-98 to 10-31-98
[GRAPH]
THE STRONG GLOBAL Global High-Yield Lipper Global
HIGH-YIELD BOND FUND Bond Index* Income Funds Index*
1-98 10,000 10,000 10,000
2-98 10,221 10,206 10,086
4-98 10,437 10,435 10,209
6-98 10,135 10,041 10,166
8-98 9,107 8,022 9,844
10-98 9,201 8,791 10,335
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of the
Global High-Yield Bond Index and the Lipper Global 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.
- --------------------------------------------------------------------------------
1 Total return is not annualized and measures aggregate change in the value
of an investment in the fund, assuming reinvestment of dividends.
2 As of October 30, 1998, the Advisor was temporarily absorbing expenses of
4.55%. Otherwise, the Fund's yield would have been 2.67% 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.
YOUR FUND'S APPROACH
THE STRONG GLOBAL HIGH-YIELD BOND FUND PURSUES A HIGH LEVEL OF CURRENT INCOME
AND CAPITAL APPRECIATION. THE FUND INVESTS PRIMARILY IN MEDIUM- AND
LOWER-QUALITY BONDS ISSUED BY U.S. AND FOREIGN COMPANIES. WE START OUR
INVESTMENT PROCESS WITH A BROAD, TOP-DOWN ANALYSIS OF WORLD MARKET AND
FINANCIAL CONDITIONS. THIS ANALYSIS LEADS US TO COUNTRIES AND COMPANIES WHOSE
BONDS WE BELIEVE OFFER THE POTENTIAL FOR HIGH INCOME AND CAPITAL APPRECIATION.
IN UNCERTAIN ECONOMIC TIMES, WE MAY AVOID EMERGING MARKETS AND MAY EVEN INVEST
ONLY IN U.S. HIGH-YIELD BONDS.
................................................................................
MARKET HIGHLIGHTS
o The Asian crisis and the Russian debt default led to large-scale selloffs
of bonds from lower-rated markets, driving prices downward dramatically.
Hedge funds that had invested heavily in those regions spurred the
downturn, as they were forced to sell those holdings.
o The Global High-Yield Bond Index (composed 65% of the J.P. Morgan Emerging
Markets Bond Index + and 35% of the Lehman Brothers High-Yield Bond Index)
is the Fund's bench-mark. This index returned -15.75% for the six-month
period ended October 31, 1998, and returned -12.09% for the nine months
since the Fund's inception on January 31, 1998.*
11
<PAGE>
==================
THE STRONG INTERNATIONAL BOND FUND
-----------==================-----
FUND HIGHLIGHTS
o The Fund returned 10.87% for the 12-month period ended October 31, 1998. As
of October 30, its 30-day current yield stood at 3.43%.
o The Fund benefited from having greater exposure in established countries,
including Germany, France, and the United Kingdom, where interest rates
dropped sharply in response to Russia's financial crisis and hedge fund
troubles. The Fund also benefited from the loss in value of the U.S. dollar
relative to the Japanese yen and European currencies.
o The Fund's overall performance was dragged down slightly by the Fund's
exposure (roughly 10%) to emerging markets, including Argentina, Brazil,
and Mexico.
................................................................................
AVERAGE ANNUAL
TOTAL RETURNS
As of 10-31-98
1-year 10.87%
3-year 6.13%
Since Inception 9.62%
(on 3-31-94)
................................................................................
PORTFOLIO STATISTICS
As of 10-30-98
30-DAY
ANNUALIZED YIELD(1) 3.43%
Average
credit quality(2) AA
Average maturity(3) 7.7 years
PERSPECTIVES
FROM THE MANAGER
/s/ Shirish Malekar
Shirish Malekar
Portfolio Manager
................................................................................
The past year has been marked by an all but unprecedented series of financial
and economic crises around the world, particularly in Russia and the rest of the
emerging markets. These produced a flight to quality that saw investors flock
out of emerging markets and into high-quality bonds from the U.S. and other
major countries. As a result, interest rates in these countries are at
historically low levels.
The extreme fragility of the Japanese financial system forced the Bank of Japan
to lower interest rates to 0.25%. We never thought that any country, let alone
the second-largest economy in the world, would have interest rates so close to
zero. This sustained weakness in the Japanese economy has prolonged the Asian
crisis that started in the summer of 1997 and has seen many Asian countries
report depressionary declines in economic output.
Anticipating declining interest rates, we kept the Fund's duration--its
sensitivity to interest-rate changes--longer than its benchmark index's. In
anticipation of some of the economic crises, we had also reduced our
emerging-market exposure from about 30% in late 1997 to about 10% in mid-1998.
Our remaining emerging-markets positions are short duration (thus lower risk)
and in relatively high-quality emerging countries like Argentina and Mexico, or
from higher-quality issuers like the Bank of Boston in Brazil.
................................................................................
INVESTMENTS BY COUNTRY
Japan
23.6%
-------------
Germany
19.5%
-------------
Italy
17.8%
-------------
United Kingdom
8.6%
-------------
Denmark
8.3%
................................................................................
- --------------------------------------------------------------------------------
* 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 Standard & Poor's Micropal. Source of the Lipper index data is Lipper
Analytical Services, Inc.
12
<PAGE>
Even these issues were hit hard, as panicked hedge-fund selling in effect threw
out the baby with the bathwater.
Looking forward, we believe that the worst global financial crisis since the
Great Depression is behind us. Global economic growth may have slowed down,
which should keep interest rates low in major developed countries. Europe and
the U.S. should grow in the next year, but at a much slower pace. We will
continue to maintain the Fund's duration near or longer than the benchmark's. If
interest rates continue to decline, as we anticipate, this should benefit your
returns.
Emerging countries will likely need more time to recover, but as long as Brazil,
China, and Hong Kong maintain the value of their currencies, we believe we have
seen the worst in the emerging countries. In the meantime, we believe that there
is value in short-duration emerging market bonds. An encouraging sign is that
the Japanese government is taking steps to address the problems in its financial
sector. These efforts, in turn, should help the recovery in the rest of Asia.
Thank you for your investment in the Strong International Bond Fund. We look
forward to working with you in the months and years to come.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 3-31-94 to 10-31-98
[GRAPH]
THE STRONG Salomon Brothers Non-U.S.
INTERNATIONAL World Government Bond Lipper International
BOND FUND Index (Currency Unhedged)* Income Funds Index*
3-94 10,000 10,000 10,000
12-94 10,866 10,396 9,837
12-95 12,937 12,428 11,700
12-96 13,966 12,938 12,784
12-97 13,297 12,387 12,991
10-98 15,235 14,485 14,463
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of 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.
- --------------------------------------------------------------------------------
1 From time to time, the Fund's advisor has waived its management fees
resulting in higher returns and without these waivers the rankings may have
been lower.
2 For purposes of this average rating, the Fund's short-term debt obligations
have been assigned a long-term rating by the Advisor.
3 The Fund's average maturity includes the effect of futures.
YOUR FUND'S APPROACH
THE STRONG INTERNATIONAL BOND FUND INVESTS FOR HIGH TOTAL RETURN BY FOCUSING ON
INVESTMENT-GRADE BONDS ISSUED IN FOREIGN COUNTRIES. THE FUND'S INVESTMENT
PROCESS BEGINS WITH A BROAD ANALYSIS OF GLOBAL FINANCIAL CONDITIONS. WE STRIVE
TO IDENTIFY COUNTRIES WHOSE BONDS MAY OFFER THE POTENTIAL FOR CAPITAL GAINS, OR
A HIGHER LEVEL OF INCOME THAN IS TYPICAL. THE FUND IS NONDIVERSIFIED, AND SO MAY
CONCENTRATE MORE OF ITS ASSETS IN A SINGLE BOND THAN WOULD A DIVERSIFIED FUND.
BECAUSE THE FUND'S INVESTMENTS ARE NOT HEDGED AGAINST CHANGES IN CURRENCY
VALUES, THE FUND FACES THE RISK--AND POTENTIAL BENEFIT--OF THE U.S. DOLLAR'S
FLUCTUATIONS RELATIVE TO OTHER MAJOR CURRENCIES.
................................................................................
MARKET HIGHLIGHTS
o The Fund's benchmark, the Salomon Brothers Non-U.S. World Government Bond
Index (currency unhedged), returned 12.79% for the 12 months ended October
31, 1998.* This index includes only developed markets--those that benefited
from the global rush to buy high-quality bonds.
o The Asian economic crisis has affected economies the world over, but most
particularly those of other developing countries. All nongovernment bond
sectors--including corporate bonds, mortgage-backed bonds, and
emerging-markets issues--posted their worst performance in more than a
decade.
o The Federal Reserve cut U.S. interest rates by 0.50%. After the Fed's rate
cut, many countries followed suit and lowered interest rates.
13
<PAGE>
======================
THE STRONG SHORT-TERM GLOBAL BOND FUND
-----------======================-----
FUNDS HIGHLIGHTS
o The Fund posted a return of 3.79% for the 12 months ended October 31, 1998.
o The Fund benefited from emphasizing established markets, including the
U.S., Germany, and the United Kingdom, as interest rates dropped sharply in
those countries. Those declines were in response to the financial crisis in
Russia and troubles with some hedge funds.
o Hurting the Fund's performance was its exposure (roughly 20% of assets) to
emerging markets, including Argentina, Brazil, and Mexico.
o The Fund has moved to a diversified approach, a change from its former
nondiversified strategy.
................................................................................
AVERAGE ANNUAL
TOTAL RETURNS
As of 10-31-98
1-year 3.79%
3-year 6.97%
Since Inception 7.55%
(on 3-31-94)
................................................................................
PORTFOLIO STATISTICS
As of 10-30-98
30-DAY ANNUALIZED
YIELD(1) 6.08%
Average
credit quality(2) AA
Average maturity(3) 2.3 years
PERSPECTIVES
FROM THE MANAGER
/s/ Shirish Malekar
Shirish Malekar
Portfolio Manager
................................................................................
In the past 12 months, the global financial markets witnessed crisis after
crisis--a series of events that we could hardly expect to face more than once in
a lifetime. Financial and economic crises around the world, particularly in
Russia and the rest of the emerging markets, precipitated a flight to quality.
As wary investors moved their assets out of emerging markets and into
high-quality government bonds from the U.S. and other established, stable
countries, interest rates in established markets dropped significantly.
The extreme fragility of the Japanese financial system forced the Bank of Japan
to lower interest rates to 0.25%. For the second-largest economy in the world to
post interest rates so close to zero is something we never thought we would see.
The weakness of the Japanese economy has prolonged the Asian crisis, with many
Asian countries reporting depression-level declines in their economic output.
To help reduce the pressure within and on global markets, the Federal Reserve
(or Fed) lowered U.S. interest rates this autumn. Many other countries lowered
their own interest rates in response.
In anticipation of these falling rates, we had structured the portfolio to make
it respond more positively to declines in interest rates. We also had prepared
the portfolio for some of the global financial crises, reducing the Fund's
emerging-market exposure from about 30% in late 1997 to just about 10% in
mid-1998.
................................................................................
INVESTMENTS BY
COUNTRY
Germany
11.8%
-----------
Italy
7.3%
-----------
Brazil
3.8%
-----------
New Zealand
3.3%
-----------
Greece
2.3%
................................................................................
- --------------------------------------------------------------------------------
* 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. Rolling one-month-forward exchange contracts
are used as the hedging instrument. 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.
14
<PAGE>
The emerging-market investments that remain in the Fund are short-term issues
from relatively high-quality emerging countries such as Argentina and Mexico, or
from such high-quality issuers as the Bank of Boston in Brazil. Even these were
hit hard in the recent panic.
We believe that the recent crisis has slowed global economic growth, and will
keep interest rates in major developed countries down for the foreseeable
future. The economies of Europe and the U.S. should grow in the coming year, but
at a much slower pace. Emerging markets may take time to recover, but as long as
Brazil, China, and Hong Kong can maintain the strength of their currencies, we
believe that emerging markets may already have passed through the worst of the
trouble.
We continue to believe that short-term emerging-market bonds offer value. We're
encouraged that the Japanese government is taking steps to address its problems
in the financial sector--steps that could help the recovery of other Asian
markets.
Thank you for your investment in the Strong Short-Term Global Bond Fund. We look
forward to earning your continued confidence.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 3-31-94 to 10-31-98
[GRAPH]
Salomon Brothers 1-3
THE STRONG SHORT-TERM Year World Government Lipper Short World Multi-
GLOBAL BOND FUND Bond Index(Currency Hedged)* Market Income Average*
3-94 10,000 10,000 10,000
12-94 10,513 10,153 9,682
12-95 11,612 11,286 10,418
12-96 12,775 12,088 11,243
12-97 13,629 12,856 11,645
10-98 13,961 13,696 12,109
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with the performance of 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.
- --------------------------------------------------------------------------------
1 From time to time, the Fund's advisor has waived its management fees
resulting in higher returns and without these waivers the rankings may have
been lower.
2 For the purposes of the average, the Fund's short-term debt obligations
have been assigned a long-term rating by the Advisor.
3 The Fund's average maturity includes the effect of futures.
YOUR FUND'S APPROACH
THE STRONG SHORT-TERM GLOBAL BOND FUND INVESTS FOR HIGH INCOME, FOCUSING ON
HIGH-QUALITY, SHORT-TERM BONDS FROM ISSUERS IN THE U.S. AND FOREIGN COUNTRIES.
THE PRICES OF SHORT-TERM BONDS ARE GENERALLY LESS SENSITIVE TO CHANGES IN
INTEREST RATES AND OTHER MARKET CONDITIONS THAN ARE LONG-TERM BONDS, SO THE
FUND'S EMPHASIS ON SHORT-TERM ISSUES HELPS TO KEEP VOLATILITY MODEST. BEFORE
CHOOSING INDIVIDUAL INVESTMENTS FOR THE FUND, WE EXAMINE GLOBAL ECONOMIC AND
FINANCIAL CONDITIONS TO IDENTIFY COUNTRIES WHOSE BONDS APPEAR TO HAVE POTENTIAL
FOR CAPITAL GAINS OR HIGH INVESTMENT INCOME. WE THEN SELECT INDIVIDUAL BONDS
THAT WE BELIEVE ARE POISED TO BENEFIT FROM THEIR COUNTRY'S ECONOMIC CONDITIONS.
................................................................................
MARKET HIGHLIGHTS
o The Salomon Brothers 1-3 Year World Government Bond Index (currency hedged)
returned 7.71% for the 12 months ended October 31, 1998. Unlike the Fund,
this index incorporates only developed markets--which benefited from
investors' renewed interest in high-quality bonds.*
o The Asian economic crisis has affected economies the world over,
particularly in other developing countries. Many types of nongovernment
bonds--including corporate, mortgage-backed, and emerging-market
issues--posted their worst performance in more than a decade.
o The Federal Reserve cut U.S. interest rates by 0.50%, a move that other
countries soon followed.
15
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES OCTOBER 31, 1998
- --------------------------------------------------------------------------------
================================================================================
STRONG ASIA PACIFIC FUND
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
COMMON STOCKS 91.8%
AUSTRALIA 10.5%
Australia & New Zealand Banking Group, Ltd. 30,500 $ 173,947
BRL Hardy, Ltd. 72,780 240,428
Cinema Plus, Ltd. 223,500 215,927
News Corporation, Ltd. 28,000 190,755
Normandy Mining, Ltd. 326,765 291,252
Oil Search, Ltd. 137,800 206,138
Resolute Samantha, Ltd. 239,000 205,577
Simeon Wines, Ltd. 133,500 278,755
Sydney Aquarium, Ltd. 98,450 233,183
Western Mining Corporation, Ltd. 73,000 247,024
-----------
2,282,986
HONG KONG 8.6%
Asia Satellite Telecommunications Holdings, Ltd. 151,000 267,137
CDL Hotels International, Ltd. 775,399 198,255
China Telecom (Hong Kong), Ltd. (b) 136,000 255,527
Guoco Group, Ltd. 225,000 235,343
HSBC Holdings PLC ADR 800 181,600
Peregrine Investment Holdings, Ltd. (b) 100,000 0
Sime Darby (Hong Kong), Ltd. 662,000 185,931
South China Morning Post Holdings, Ltd. 502,000 269,021
Swire Pacific, Ltd. 51,000 270,674
-----------
1,863,488
INDIA 5.3%
Aptech, Ltd. 10,000 101,538
Bajaj Auto, Ltd. 12,100 158,401
Corporation Bank 89,000 205,352
Hindalco Industries, Ltd. 7,000 84,645
Indian Hotels Company, Ltd. 50 484
The Indian Smaller Companies Fund, Ltd. (b) 13,580 112,171
IS Himilayan Fund NV (b) 22,000 173,800
Larsen & Toubro, Ltd. 43,000 146,993
Reliance Industries, Ltd. 300 778
UTI-Mastergrowth 93 Fund (b) 687,000 164,035
-----------
1,148,197
INDONESIA 4.5%
Gulf Indonesia Resources, Ltd. 15,300 151,088
Indofood Sukses Makmur Tbk PT (b) 702,000 159,120
Indosat PT 216,000 236,160
London Sumatra Indonesia PT 1,500,000 190,000
Ramayana Lestari Sentosa Tbk PT 1,767,000 235,600
-----------
971,968
JAPAN 16.8%
Aruze Corporation (b) 11,000 171,535
Asatsu, Inc. 6,500 120,962
Canon Chemicals, Inc. 24,000 188,162
Canon, Inc. 8,000 151,977
Fidelity Japan OTC and Regional Markets
Fund, Ltd. (b) 40,500 132,840
Fujitsu Support and Service, Inc. (Acquired 9/09/98;
Cost $61,403) (d) 2,000 100,801
Honda Motor Company, Ltd. 7,000 211,080
Ito-Yokado Company, Ltd. 4,000 234,341
Japan Associated Finance 13,000 277,763
Japan OTC Equity Fund, Inc. (b) 300 86,100
Mikasa Coca-Cola Bottling Warrants, Expire 1/05/00(b)1,500 63,249
Mitsukoshi, Ltd. 86,000 230,430
Nintendo Company, Ltd. 1,500 127,940
Nippon Broadcasting System 6,000 204,187
Nippon Shinpan Company 120,000 217,110
NTT Mobile Communication Network, Inc. 70 253,899
Oriental Land Company, Ltd. 5,600 223,382
Ryohin Keikaku Company, Ltd. 2,400 260,532
Sanwa Electric Warrants, Expire 1/19/01 (b) 850 28,296
Tokyo Electric Power Company 14,000 355,820
-----------
3,640,406
LEBANON 1.0%
Solidere GDR 21,200 227,900
MALAYSIA 2.1%
Berjaya Sports Toto BHD (f) 169,000 95,238
Kumpulan Guthrie BHD (f) 200,000 80,295
Malaysia International Shipping BHD (Fgn Reg) (f) 188,000 144,029
Sime Darby BHD (f) 261,000 132,663
-----------
452,225
NEW ZEALAND 5.7%
Guinness Peat Group PLC 374,464 281,291
Restaurant Brands New Zealand, Ltd. 457,000 198,237
Shortland Properties, Ltd. 377,725 103,905
Sky City, Ltd. 65,000 195,995
Telecom Corporation of New Zealand, Ltd. 127,000 247,233
Tranz Rail Holdings, Ltd. 113,000 206,828
-----------
1,233,489
PHILIPPINES 4.2%
Benpres Holdings Corporation (b) 2,450,000 265,112
Cosmos Bottling Corporation 3,359,000 321,695
SM Prime Holdings, Inc. 1,897,000 320,886
-----------
907,693
SINGAPORE 17.5%
City Developments, Ltd. 73,000 265,537
Creative Technology, Ltd. (b) 21,200 309,767
DBS Land, Ltd. 245,000 277,928
The Development Bank of Singapore, Ltd. (Fgn Reg) 44,000 276,695
IDT Holdings Singapore, Ltd. 224,000 171,360
Jurong Shipyards, Ltd. 60,000 258,940
Keppel Corporation, Ltd. 184,500 370,820
MMI Holdings, Ltd. 586,000 272,768
Natsteel Electronics, Ltd. 111,000 228,570
Osprey Maritime, Ltd. (b) 586,000 225,801
Oversea-Chinese Banking Corporation, Ltd. 59,000 258,261
Overseas Union Bank, Ltd. (Fgn Reg) 108,000 294,303
SembCorp Industries, Ltd. (b) 166,061 164,832
Singapore Press Holdings, Ltd. 22,500 195,592
United Overseas Bank, Ltd. 50,000 235,820
-----------
3,806,994
SOUTH KOREA 4.6%
Kookmin Bank (b) 63,000 227,526
Korea Electric Power Corporation 12,900 230,008
Pohang Iron & Steel Company, Ltd. 5,310 233,672
S1 Corporation 2,284 306,695
-----------
997,901
TAIWAN 0.6%
Jardine Fleming Fund 320,000 119,598
THAILAND 9.2%
Advanced Info Service PCL (Fgn Reg) 29,000 213,351
Dusit Thani PCL (Fgn Reg) (b) 244,500 219,850
Electricity Generating PCL (Fgn Reg) (b) 157,500 416,281
Industrial Finance Corporation of Thailand
(Fgn Reg) 1,070,000 430,041
PTT Exploration and Production PCL (Fgn Reg) (b) 34,300 330,850
Royal Garden Resort PCL (Fgn Reg) (b) 434,000 175,906
Shinawatra Computer Company PCL (Fgn Reg) (b) 43,000 206,213
-----------
1,992,492
UNITED STATES 0.5%
Freeport-McMoran Copper & Gold, Inc. Class B 9,100 112,044
VIETNAM 0.7%
Beta Mekong Fund (b) 25,000 143,750
Beta Mekong Fund Warrants, Expire 10/31/09 (b) 5,000 2,750
-----------
146,500
- --------------------------------------------------------------------------------
Total Common Stocks (Cost $22,112,889) 19,903,881
- --------------------------------------------------------------------------------
16
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
STRONG ASIA PACIFIC FUND (CONTINUED)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
CONVERTIBLE BONDS 4.3%
HONG KONG 1.4%
Shanghai Industrial Investment Company
Yankee Notes, 1.00%, Due 2/24/03 400,000 USD $ 306,000
JAPAN 2.9%
Fujitsu, Ltd. Bonds, Series 10, 2.00%,
Due 3/31/04 25,000,000 JPY 284,096
Konami Company, Ltd. Notes, 0.75%,
Due 3/31/00 36,000,000 JPY 355,906
----------
640,002
- --------------------------------------------------------------------------------
Total Convertible Bonds (Cost $815,783) 946,002
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 3.5%
COMMERCIAL PAPER 0.3%
INTEREST BEARING, DUE UPON DEMAND
UNITED STATES
United States Cayman Eurodollar Call Deposit, 4.25%$ 65,000 65,000
TIME DEPOSITS 3.2%
UNITED STATES
Westdeutsche Landesbank Gironzentrale Grand
Cayman, 5.6875%, Due 11/02/98 700,000 700,000
- --------------------------------------------------------------------------------
Total Short-Term Investments (Cost $765,000) 765,000
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Total Investments in Securities (Cost $23,693,672) 99.6% 21,614,883
Other Assets and Liabilities, Net 0.4% 94,776
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $21,709,659
================================================================================
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
- --------------------------------------------------------------------------------
Settlement Value Unrealized
Date in USD Appreciation
- --------------------------------------------------------------------------------
Sold:
29,615,530 JPY 11/24/98 $256,068 $44,195
36,909,600 JPY 2/16/99 323,211 63,211
================================================================================
STRONG FOREIGN MAJORMARKETS FUND
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
COMMON STOCKS 92.1%
AUSTRALIA 3.0%
National Australia Bank, Ltd. 1,790 $23,653
Westpac Banking Corporation, Ltd. 3,300 20,014
-------
43,667
BELGIUM 1.1%
Compagnie Benelux Paribas SA 40 2,562
Credit Communal Holding Dexia 80 12,986
-------
15,548
DENMARK 1.4%
Den Danske Bank Group 127 17,270
Unidanmark A/S `A Shares' 40 3,054
-------
20,324
FINLAND 0.6%
Valmet Oyj 764 8,188
FRANCE 8.4%
Air Liquide 183 30,683
Compagnie de Saint Gobain 100 14,820
Compagnie Francaise d'Etudes et de
Construction Technip 20 2,037
Compagnie Generale des Etablissements Michelin
Class B 110 4,541
Credit Commercial de France 200 14,069
Dexia France 90 13,289
Eridania Beghin-Say SA 20 3,606
Lagardere Groupe 150 6,047
Louis Vuitton Moet Hennessy 70 12,999
STMicroelectronics (b) 80 4,897
Sagem SA 6 3,835
Valeo SA 130 11,273
-------
122,096
GERMANY 9.3%
Adidas AG 60 7,037
Axa Colonia Konzern AG 160 18,474
BASF AG 91 3,862
Bayer AG 320 13,019
Degussa AG 50 2,403
Deutsche Lufthansa AG - Registered Shares 140 3,047
Hoechst AG 530 22,172
RWE AG 360 19,543
Schwarz Pharma AG 50 3,506
Thyssen AG 20 3,603
VEBA AG 340 19,012
Viag AG 22 14,962
Volksfuersorge Holding AG 10 5,568
-------
136,208
HONG KONG 1.6%
Asia Satellite Telecommunications Holdings, Ltd. 2,500 4,423
Dickson Concepts International, Ltd. 2,500 2,421
Elec & Eltek International Holdings, Ltd. 40,000 7,696
Yue Yuen Industrial Holdings 5,000 8,910
-------
23,450
IRELAND 0.6%
Irish Life PLC 1,050 9,314
ITALY 3.8%
Edison Spa 3,000 26,560
Eni Spa 4,300 25,692
Sorin Biomedica Group Spa 1,000 3,789
-------
56,041
JAPAN 20.0%
Canon, Inc. 1,000 18,997
Chugai Pharmaceutical Company, Ltd. 1,000 9,132
East Japan Railway Company 8 47,627
Fuji Electric Company, Ltd. 1,000 1,766
Hino Motors, Ltd. 3,000 8,710
Hitachi Metals, Ltd. 2,000 5,169
Hokuetsu Paper Mills, Ltd. 5,000 25,847
Isuzu Motors, Ltd. 6,000 10,494
Kamigumi Company, Ltd. 1,000 4,299
Kawasaki Heavy Industries, Ltd. 5,000 10,985
Kubota Corporation 3,000 6,668
Kyowa Hakko Kogyo Company, Ltd. 1,000 5,686
Minolta Company, Ltd. 1,000 5,057
Mitsui Soko Company, Ltd. 5,000 18,523
NAMCO, Ltd. 300 6,630
NEC Corporation 3,000 22,306
Nippon Express Company, Ltd. 5,000 28,216
Nippon Zeon Company, Ltd. 2,000 5,652
Oki Electric Industry Company, Ltd. 6,000 11,993
Sony Corporation 200 12,751
Sumitomo Chemical Company, Ltd. 5,000 16,800
Toshiba Ceramics Company, Ltd. 2,000 4,342
West Japan Railway Company 1 4,480
-------
292,130
MALAYSIA 0.3%
Telekom Malaysia BHD (f) 4,000 5,009
17
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) OCTOBER 31, 1998
- --------------------------------------------------------------------------------
================================================================================
STRONG FOREIGN MAJORMARKETS FUND (CONTINUED)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
NETHERLANDS 4.8%
Akzo Nobel NV 86 $ 3,346
Koninklijke KPN NV 523 20,346
Koninklijke Philips Electronics NV 260 13,848
Laurus NV 77 1,939
Unilever NV 378 28,317
Vendex NV 110 2,870
--------
70,666
NEW ZEALAND 0.2%
Fletcher Challenge Energy 1,760 3,240
NORWAY 0.5%
Christiania Bank Og Kreditkasse 600 2,119
Den norske Bank ASA 860 3,049
Orkla ASA `B Shares' 190 2,861
--------
8,029
PORTUGAL 0.7%
BPI-SGPS SA - Registered Shares 210 6,451
Banco Comercial Portugues SA - Registered Shares 140 4,391
--------
10,842
SINGAPORE 0.8%
City Developments, Ltd. 3,000 10,912
SPAIN 3.8%
Autopistas, Concesionaria Espanola SA 220 3,605
Banco Popular Espanol SA 160 9,897
Endesa SA 1,349 34,049
Repsol SA 160 8,043
--------
55,594
SWEDEN 3.3%
Industrivarden AB `A Shares' 1,830 24,241
Nordbanken Holding AB 4,058 24,425
--------
48,666
SWITZERLAND 7.7%
Alusuisse Lonza Group AG - Registered Shares 22 25,193
Ems-Chemie Holding AG (b) 1 6,281
Financiere Richemont AG CIE Units 2 2,663
Motor-Columbus, Ltd. 3 5,104
Nestle AG 14 29,827
Reisebuero Kuoni AG 1 3,581
SGS Societe Generale de Surveillance Holding SA -
Registered Shares 38 7,449
Vontoble Holding AG `B Shares' 22 33,200
--------
113,298
UNITED KINGDOM 20.2%
Allied Zurich PLC (b) 1,054 12,179
BTR PLC 2,530 4,428
Britannic Assurance PLC 1,020 21,831
British American Tobacco PLC (b) 1,054 9,390
Bunzl PLC 1,330 6,147
Carlton Communications PLC 580 4,177
Dixons Group PLC 770 8,227
Guardian Royal Exchange PLC 4,190 20,314
IMI PLC 1,440 7,114
Morgan Crucible Company PLC 350 1,846
National Grid Group PLC 4,037 27,652
National Power PLC 1,300 11,299
Premier Farnell PLC 1,170 3,282
Prudential Corporation PLC 2,460 32,011
Scottish Power PLC 2,850 28,065
Sedgwick Group PLC 1,210 4,549
Smith & Nephew PLC 8,000 22,240
Standard Chartered PLC 1,060 11,406
TI Group PLC 1,790 10,672
Unigate PLC 1,330 11,616
Unilever PLC 2,764 27,773
United Assurance Group PLC 960 9,349
--------
295,567
- --------------------------------------------------------------------------------
Total Common Stocks (Cost $1,422,939) 1,348,789
- --------------------------------------------------------------------------------
PREFERRED STOCKS 2.7%
FRANCE 0.5%
Etablissements Economiques du Casino
Guichard-Perrachon SA 130 7,969
GERMANY 2.2%
Henkel KGaA-Vorzug 193 16,509
Metro AG 170 6,731
RWE AG Non Voting 230 8,412
--------
31,652
- --------------------------------------------------------------------------------
Total Preferred Stocks (Cost $42,344) 39,621
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 0.1%
COMMERCIAL PAPER 0.1%
INTEREST BEARING, DUE UPON DEMAND
UNITED STATES
United States Cayman Eurodollar Call Deposit, 4.25% $1,000 1,000
- --------------------------------------------------------------------------------
Total Short-Term Investments (Cost $1,000) 1,000
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Total Investments in Securities (Cost $1,466,283) 94.9% 1,389,410
Other Assets and Liabilities, Net 5.1% 74,920
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $1,464,330
================================================================================
FUTURES
- --------------------------------------------------------------------------------
Underlying
Expiration Face Amount Unrealized
Date at Value Appreciation
- --------------------------------------------------------------------------------
Purchased:
1 IBEX 35 Index 11/98 $62,436 $787
================================================================================
STRONG INTERNATIONAL STOCK FUND
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
COMMON STOCKS 96.9%
AUSTRALIA 1.0%
AMP, Ltd. (b) 77,400 $ 918,217
CANADA 2.0%
Bank of Montreal 48,000 1,950,107
EGYPT 0.0%
Suez Cement 300 4,642
FINLAND 4.0%
Nokia Oyj `A Shares' 42,000 3,833,366
FRANCE 7.8%
Groupe Danone 6,600 1,747,958
Pechiney SA `A Shares' 60,000 2,065,012
Pinault-Printemps-Redoute SA 8,500 1,425,172
Scor 10,500 603,115
Suez Lyonnaise des Eaux 9,300 1,668,289
----------
7,509,546
18
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
STRONG INTERNATIONAL STOCK FUND (CONTINUED)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
GERMANY 6.1%
Bayerische Motoren Werke AG 3,200 $ 2,257,528
Bayerische Motoren Werke AG - New (b) 266 187,335
Deutsche Lufthansa AG - Registered Shares 53,000 1,153,428
Mannesmann AG 23,000 2,266,352
Muenchener Rueckversicherungs - Gesellschaft
Warrants, Expire 6/03/02 (Acquired 7/29/98;
Cost $0) (b) (d) 116 5,048
-----------
5,869,691
HONG KONG 26.3%
Cheung Kong Holdings, Ltd. 540,000 3,695,764
China Telecom (Hong Kong), Ltd. (b) 973,000 1,828,144
Citic Pacific, Ltd. 874,000 2,150,013
Hang Seng Bank, Ltd. 468,000 4,049,070
Henderson Land Development Company, Ltd. 604,000 2,971,643
Hutchison Whampoa, Ltd. 499,000 3,576,253
New World Development Company, Ltd. 1,367,000 3,177,428
Peregrine Investment Holdings, Ltd. (b) 600,000 0
Sun Hung Kai Properties, Ltd. 550,000 3,835,227
-----------
25,283,542
INDIA 0.0%
Asian Hotels, Ltd. 150 513
Indian Hotels Company, Ltd. 2,050 19,846
Titan Industries, Ltd. 20 24
UTI-Mastergrowth 93 Fund (b) 37,600 8,978
-----------
29,361
IRELAND 0.7%
Connemara Green Marble Quarries PLC (Acquired
11/21/96 - 6/20/97; Cost $635,000) (b) (d) (e) 50,800 635,000
Connemara Green Marble Quarries PLC Warrants,
Expire 9/30/02 (b) (e) 8,000 0
-----------
635,000
ITALY 6.2%
Banca Poplare di Brescia 66,000 1,552,312
La Rinascente Spa 130,000 1,262,550
Mediaset Spa 196,000 1,245,889
Mediolanum Spa 40,000 1,001,786
Telecom Italia Mobile Spa 152,000 884,947
-----------
5,947,484
KAZAKHSTAN 0.2%
Firebird Republics Fund (Acquired 8/29/97;
Cost $771,186) (b) (d) 4,055 222,150
NETHERLANDS 7.4%
Getronics NV 38,300 1,590,532
Koninklijke Ahold NV 50,250 1,672,128
Koninklijke Ahrend NV 26,000 528,025
Laurus NV 32,340 814,479
Vendex NV 46,200 1,205,626
Verenigd Bezit VNU NV 37,700 1,305,015
-----------
7,115,805
PORTUGAL 1.4%
Brisa-Auto Estradas de Portugal SA 28,400 1,378,137
ROMANIA 0.8%
The Romanian Investment Fund, Ltd. (Acquired
5/08/97; Cost $1,500,000) (b) (d) 1,500 731,250
SPAIN 2.2%
Banco Popular Espanol SA 16,000 989,691
Banco Santander SA 58,048 1,064,798
-----------
2,054,489
SWEDEN 1.0%
Skandia Forsakrings AB 76,000 952,993
SWITZERLAND 3.1%
Adecco SA 4,245 $ 1,695,739
Zurich Allied AG 2,100 1,278,518
-----------
2,974,257
UKRAINE 0.7%
Ukrainian Opportunity Fund (Acquired 3/21/97;
Cost $1,200,000) (b) (d) 118,800 653,400
UNITED KINGDOM 26.0%
Boots Company PLC 60,000 901,907
Cable & Wireless Communications PLC (b) 175,000 1,318,826
EMAP PLC 64,000 1,093,244
GKN PLC 88,000 1,069,933
Hays PLC 72,000 1,061,693
Legal & General Group PLC 345,000 4,090,622
Lloyds TSB Group PLC 277,000 3,421,203
Misys PLC 284,000 2,002,338
National Express Group PLC 104,000 1,767,813
Stagecoach Holdings PLC 325,000 1,238,231
Standard Chartered PLC 394,000 4,239,419
Vodafone Group PLC 100,000 1,338,085
WPP Group PLC 286,000 1,412,945
-----------
24,956,259
- --------------------------------------------------------------------------------
Total Common Stocks (Cost $92,153,505) 93,019,696
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 0.0%
COMMERCIAL PAPER 0.0%
INTEREST BEARING, DUE UPON DEMAND
UNITED STATES
United States Cayman Eurodollar Call Deposit, 4.25% 1,000 1,000
- --------------------------------------------------------------------------------
Total Short-Term Investments (Cost $1,000) 1,000
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Total Investments in Securities (Cost $92,154,505) 96.9% 93,020,696
Other Assets and Liabilities, Net 3.1% 2,999,273
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $96,019,969
================================================================================
================================================================================
STRONG OVERSEAS FUND
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
COMMON STOCKS 93.9%
CANADA 1.0%
Bank of Montreal 700 $ 28,439
FINLAND 8.0%
Nokia Oyj `A Shares' 2,400 219,049
FRANCE 5.2%
Pechiney SA `A Shares' 1,700 58,509
Pinault-Printemps-Redoute SA 125 20,958
Scor 320 18,381
Suez Lyonnaise des Eaux 240 43,052
--------
140,900
GERMANY 5.7%
Bayerische Motoren Werke AG 60 42,329
Deutsche Lufthansa AG - Registered Shares 2,500 54,407
Mannesmann AG 580 57,151
--------
153,887
HONG KONG 23.7%
Cheung Kong Holdings, Ltd. 14,000 95,816
China Telecom (Hong Kong), Ltd. (b) 25,000 46,972
Citic Pacific, Ltd. 22,000 54,120
Hang Seng Bank, Ltd. 12,000 103,822
Henderson Land Development Company, Ltd. 15,000 73,799
Hutchison Whampoa, Ltd. 13,000 93,169
New World Development Company, Ltd. 35,000 81,353
Sun Hung Kai Properties, Ltd. 14,000 97,624
--------
646,675
19
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) OCTOBER 31, 1998
- --------------------------------------------------------------------------------
================================================================================
STRONG OVERSEAS FUND (CONTINUED)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
ITALY 11.5%
Alleanza Assicurazioni 4,840 $ 60,025
Banca Poplare di Brescia 3,400 79,967
La Rinascente Spa 2,100 20,395
Mediaset Spa 5,400 34,325
Mediolanum Spa 1,000 25,045
Telecom Italia Spa 2,600 18,838
Telecom Italia Mobile Spa 12,700 73,940
--------
312,535
NETHERLANDS 6.7%
Getronics NV 780 32,392
Koninklijke Ahold NV 1,500 49,914
Koninklijke Ahrend NV 750 15,232
Laurus NV Shares Cert 742 18,687
Vendex NV 1,060 27,662
Verenigd Bezit VNU NV 1,100 38,077
--------
181,964
PORTUGAL 0.8%
Brisa-Auto Estradas de Portugal SA (Acquired
7/02/98; Cost $20,012) (d) 470 22,807
SPAIN 1.8%
Banco Popular Espanol SA 350 21,650
Banco Santander SA 1,547 28,377
--------
50,027
SWEDEN 0.9%
Skandia Forsakrings AB 2,000 25,079
SWITZERLAND 2.1%
Adecco SA 75 29,960
Zurich Allied AG 45 27,397
--------
57,357
UNITED KINGDOM 26.5%
Boots Company PLC 2,600 39,083
Cable & Wireless Communications PLC (b) 6,500 48,985
EMAP PLC 1,000 17,082
GKN PLC 1,600 19,453
Hays PLC 3,200 47,186
Legal & General Group PLC 5,600 66,398
Lloyds TSB Group PLC 4,300 53,109
Misys PLC 7,600 53,584
National Express Group PLC 1,200 20,398
Rentokil Initial PLC 8,500 52,137
Stagecoach Holdings PLC 4,500 17,145
Standard Chartered PLC 10,000 107,599
Vodafone Group PLC 3,200 42,819
Vodafone Group PLC Sponsored ADR 800 107,700
WPP Group PLC 6,100 30,136
--------
722,814
- --------------------------------------------------------------------------------
Total Common Stocks (Cost $2,507,131) 2,561,533
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 2.4%
COMMERCIAL PAPER 2.4%
INTEREST BEARING, DUE UPON DEMAND
UNITED STATES
United States Cayman Eurodollar Call Deposit, 4.25% $65,000 $ 65,000
- --------------------------------------------------------------------------------
Total Short-Term Investments (Cost $65,000) 65,000
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Total Investments in Securities (Cost $2,572,131) 96.3% 2,626,533
Other Assets and Liabilities, Net 3.7% 100,767
- --------------------------------------------------------------------------------
Net Assets 100.0% $2,727,300
================================================================================
================================================================================
STRONG GLOBAL HIGH-YIELD BOND FUND
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
CORPORATE BONDS 66.6%
UNITED STATES
AP Holdings, Inc. Senior Discount Notes, Zero %,
Due 3/15/08 (Rate Reset Effective 3/15/03) $ 250,000 $ 118,125
Fresenius Medical Care Capital Trust II Guaranteed
Preferred Securities, 7.875%, Due 2/01/08 210,000 196,350
Global Crossing Holding, Ltd. Senior Notes, 9.625%,
Due 5/15/08 (Acquired 8/31/98; Cost $143,625) 150,000 145,875
Nextlink Communications, Inc. Senior Notes, 9.00%,
Due 3/15/08 150,000 137,250
Optel, Inc. Senior Notes, Series B, 13.00%, Du 150,000 146,250
Owens-Illinois, Inc. Senior Notes, 8.10%, Due 150,000 158,005
Winstar Communications, Inc. Senior Discount Notes,
Zero %, Due 10/15/05 (Rate Reset Effective 10/ 160,000 112,800
- --------------------------------------------------------------------------------
Total Corporate Bonds (Cost $1,092,662) 1,014,655
- --------------------------------------------------------------------------------
CONVERTIBLE BONDS 10.1%
UNITED STATES
Bell Atlantic Financial Services, Inc. Senior Notes,
5.75%, Due 4/01/03 (Acquired 2/12/98;
Cost $150,000) (d) 150,000 154,125
- --------------------------------------------------------------------------------
Total Convertible Bonds (Cost $150,000) 154,125
- --------------------------------------------------------------------------------
GOVERNMENT & AGENCY ISSUES 0.1%
RUSSIA
Russia Principal Loans Floating Rate Debentures,
6.625%, Due 12/15/15 (Acquired 6/02/98;
Cost $5,109) (d) 8,770 USD 899
- --------------------------------------------------------------------------------
Total Government & Agency Issues (Cost $5,134) 899
- --------------------------------------------------------------------------------
COMMON STOCKS 0.4%
UNITED STATES
Optel, Inc. Non-Voting (Acquired 3/18/98;
Cost $6,750) (d) 150 6,000
- --------------------------------------------------------------------------------
Total Common Stocks (Cost $6,750) 6,000
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 22.3%
COMMERCIAL PAPER 2.6%
INTEREST BEARING, DUE UPON DEMAND
UNITED STATES
United States Cayman Eurodollar Call Deposit,
4.25% $ 39,000 39,000
TIME DEPOSITS 19.7%
UNITED STATES
Westdeutsche Landesbank Gironzentrale Grand
Cayman, 5.6875%, Due 11/02/98 300,000 300,000
- --------------------------------------------------------------------------------
Total Short-Term Investments (Cost $339,000) 339,000
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Total Investments in Securities (Cost $1,593,546) 99.5% 1,514,679
Other Assets and Liabilities, Net 0.5% 7,678
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $1,522,357
================================================================================
20
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
STRONG INTERNATIONAL BOND FUND
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
CORPORATE BONDS 7.3%
CANADA 2.9%
Shaw Communications, Inc. Debentures, 8.54%,
Due 9/30/27 1,000,000 CAD $ 581,222
DENMARK 0.6%
Nykredit Bonds, 8.00%, Due 10/01/29 735,000 DKK 119,646
MEXICO 2.0%
Imexsa Export Trust Senior Structured Variable
Rate Pass-Thru Certificates, Series 1996-1,
10.125%, Due 5/31/03 (Acquired 5/22/96;
Cost $480,488) (d) 480,488 USD 398,805
NEW ZEALAND 1.5%
International Bank for Reconstruction &
Development Senior Notes, Zero %,
Due 8/20/07 1,000,000 NZD 306,819
UNITED STATES 0.3%
Bank of Boston Corporation Subordinated
Floating Rate Notes, 5.8125%, Due 2/28/01 $50,000 50,065
- --------------------------------------------------------------------------------
Total Corporate Bonds (Cost $1,656,328) 1,456,557
- --------------------------------------------------------------------------------
GOVERNMENT & AGENCY ISSUES 62.9%
ARGENTINA 0.3%
Republic of Argentina Bote 10 Floating Rate
Notes, 5.3125%, Due 4/01/00 50,854 USD 56,367
AUSTRALIA 2.2%
Australian Government Bonds, 7.50%,
Due 9/15/09 595,000 AUD 449,426
DENMARK 7.7%
Kingdom of Denmark Notes:
7.00%, Due 11/15/07 4,250,000 DKK 788,421
9.00%, Due 11/15/00 4,400,000 DKK 765,583
----------
1,554,004
FINLAND 3.4%
Government of Finland Bonds, 10.00%,
Due 9/15/01 3,000,000 FIM 698,062
FRANCE 6.4%
Government of France Debentures, 8.50%,
Due 11/25/02 6,000,000 FRF 1,282,817
GERMANY 19.5%
Republic of Germany Bonds, Series 97, 6.00%,
Due 7/04/07 2,000,000 DEM 1,364,527
Republic of Germany Debentures, Series 94,
7.50%, Due 11/11/04 3,550,000 DEM 2,556,592
----------
3,921,119
GREECE 1.8%
Republic of Hellenic Bonds, 8.80%,
Due 6/19/07 100,000,000 GRD 369,633
ITALY 17.8%
Buoni Poliennali Del Tes Bonds, 7.75%,
Due 11/01/06 4,800,000,000 ITL 3,587,523
UNITED STATES 3.8%
United States Treasury Notes, 6.25%,
Due 5/31/00 $750,000 771,797
- --------------------------------------------------------------------------------
Total Government & Agency Issues (Cost $12,057,418) 12,690,748
- --------------------------------------------------------------------------------
NON-AGENCY MORTGAGE & ASSET-BACKED
SECURITIES 15.2%
CS First Boston Mortgage Securities Corporation
Mortgage Pass-Thru Certificates, Series 1992-4,
Class A-5, Interest Only, 0.625%, Due 10/25/22 $16,937,512 $ 174,626
Citicorp Mortgage Securities, Inc. Real Estate
Mortgage Investment Conduit Pass-Thru
Certificates, Series 1993-3, Class B1, 7.00%, Due
3/25/08 (Acquired 10/23/96; Cost $391,047) (d) 396,908 388,723
DLJ Mortgage Acceptance Corporation Variable
Rate Mortgage Pass-Thru Certificates:
Series 1990-2, Class A, 7.3385%, Due 1/25/22 293,017 302,107
Series 1991-3, Class A1, 7.1861%, Due 2/20/21 582,584 601,559
Merrill Lynch Home Equity Acceptance, Inc.
Subordinated Variable Rate Mortgage-Backed
Certificates, Series 1994-A, Class A-1, 6.6875%,
Due 8/17/23 69,860 69,270
RTC Variable Rate Mortgage Pass-Thru
Securities, Inc.:
Series 1992-16, Class B-3, 10.5648%, Due 5/25/24 500,016 498,766
Series 1995-1, Class B-5, 6.9348%, Due 10/25/28 553,679 561,195
Ryland Mortgage Securities Corporation Variable
Rate Mortgage Participation Securites, Series
1991-1, 7.1835%, Due 3/25/20 454,753 471,524
- --------------------------------------------------------------------------------
Total Non-Agency Mortgage & Asset-Backed Securities
(Cost $2,833,463) 3,067,770
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 9.3%
COMMERCIAL PAPER 0.0%
INTEREST BEARING, DUE UPON DEMAND
UNITED STATES
United States Cayman Eurodollar Call Deposit,
4.25% 1,000 1,000
GOVERNMENT & AGENCY ISSUES 5.8%
PHILIPPINES 5.0%
Philippine T-Bill-Linked or LIBOR-Linked
Hedged Promissory Notes, 5.7813%, Due
8/11/99 (Acquired 8/11/98; Cost $1,000,000) (d) 1,000,000 USD 1,010,000
UNITED STATES 0.8%
United States Treasury Bills, Due 2/18/99 (c) $170,000 167,948
----------
Total Government & Agency Issues 1,177,948
TIME DEPOSITS 3.5%
UNITED STATES
Westdeutsche Landesbank Girozentrale Grand
Cayman, 5.6875%, Due 11/02/98 700,000 700,000
- --------------------------------------------------------------------------------
Total Short-Term Investments (Cost $1,868,470) 1,878,948
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Total Investments in Securities (Cost $18,415,679) 94.7% 19,094,023
Other Assets and Liabilities, Net 5.3% 1,064,803
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $20,158,826
================================================================================
FUTURES
- --------------------------------------------------------------------------------
Underlying Unrealized
Expiration Face Amount Appreciation
Date at Value (Depreciation)
- --------------------------------------------------------------------------------
Purchased:
4 Ten-Year Japanese Government Bonds 12/98 $4,759,976 $146,229
9 Ten-Year United Kingdom Government
Bonds 12/98 1,727,738 51,547
Sold:
5 Ten-Year Australian Government Bonds 12/98 483,348 (24,338)
21
<PAGE>
SCHEDULES OF INVESTMENTS IN SECURITIES (CONTINUED) OCTOBER 31, 1998
- --------------------------------------------------------------------------------
================================================================================
STRONG INTERNATIONAL BOND FUND (CONTINUED)
================================================================================
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
- --------------------------------------------------------------------------------
Unrealized
Settlement Value Appreciation
Date in USD (Depreciation)
- --------------------------------------------------------------------------------
Purchased:
1,152,000 CAD 2/12/99 $ 746,936 ($ 10,958)
10,574,494 DEM 2/12/99 6,422,993 385,618
635,530,000 JPY 11/12/98 5,485,602 557,203
Sold:
1,080,000 AUD 2/12/99 674,118 (26,550)
945,000 CAD 12/17/98 612,666 15,179
6,260,000 DKK 4/06/99 998,771 2,106
6,750,000 FRF 11/12/98 1,217,720 (69,956)
640,000 GBP 4/21/99 1,062,930 16,429
108,000,000 GRD 4/21/99 373,989 1,077
1,911,995,000 ITL 2/12/99 1,172,961 (77,639)
================================================================================
STRONG SHORT-TERM GLOBAL BOND FUND
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
CORPORATE BONDS 13.8%
BRAZIL 3.8%
Banco de Boston SA Floating Rate Eurodollar
Notes, 9.505%, Due 1/16/02 3,690,000 USD $ 2,878,200
DENMARK 1.0%
Nykredit Bonds, 8.00%, Due 10/01/29 4,661,000 DKK 758,733
MEXICO 0.5%
Imexsa Export Trust Senior Structured Variable
Rate Pass-Thru Certificates, Series 1996-1,
10.125%, Due 5/31/03 (Acquired 5/22/96;
Cost $480,488) (d) 480,488 USD 398,805
NEW ZEALAND 0.4%
International Bank for Reconstruction &
Development Senior Notes, Zero %,
Due 8/20/07 1,000,000 NZD 306,820
UNITED STATES 8.1%
Atlas Air, Inc. Pass-Thru Certificates, Series
1998-1, Class C, 8.01%, Due 1/02/10 $1,000,000 1,025,308
Bank of Boston Corporation Subordinated
Floating Rate Notes, 5.8125%, Due 2/28/01 100,000 100,131
GS Escrow Corporation Senior Notes, 6.75%, Due
8/01/01 (Acquired 7/30/98; Cost $997,620) (d) 1,000,000 979,418
HRPT Properties Trust Floating Rate Notes,
5.9711%, Due 7/09/07 3,000,000 2,990,730
Niagara Mohawk Power Corporation Senior
Notes, Series B, 7.00%, Due 10/01/00 1,000,000 1,009,468
---------
6,105,055
- --------------------------------------------------------------------------------
Total Corporate Bonds (Cost $11,476,363) 10,447,613
- --------------------------------------------------------------------------------
GOVERNMENT & AGENCY ISSUES 48.5%
ARGENTINA 0.4%
Republic of Argentina Bote 10 Floating Rate
Notes, 5.3125%, Due 4/01/00 254,271 USD 281,834
AUSTRALIA 2.3%
Australian Government Bonds, 7.50%,
Due 9/15/09 2,335,000 AUD 1,763,713
GERMANY 7.3%
Republic of Germany Debentures, Series 90,
8.875%, Due 12/20/00 8,200,000 DEM 5,513,263
GREECE 2.3%
Republic of Hellenic Bonds, 8.80%,
Due 6/19/07 470,000,000 GRD 1,737,273
ITALY 7.3%
Buoni Poliennali Del Tes Bonds, 7.75%,
Due 11/01/06 4,800,000,000 ITL 3,587,523
Government of Italy Debentures, 12.00%,
Due 1/01/02 2,450,000,000 ITL 1,854,358
---------
5,441,881
NEW ZEALAND 2.9%
Government of New Zealand Notes, 6.50%,
Due 2/15/00 4,000,000 NZD 2,150,681
PANAMA 1.5%
Republic of Panama Floating Rate Notes,
6.75%, Due 5/14/02 1,230,795 USD 1,139,261
UNITED STATES 24.5%
FHLMC Participation Certificates:
7.728%, Due 7/01/10 $ 461,961 482,966
9.00%, Due 8/01/18 1,067,673 1,140,487
10.00%, Due 6/01/05 712,581 739,916
FNMA Guaranteed Real Estate Mortgage
Investment Conduit Adjustable Rate
Mortgage Certificates:
Pool #372179, 11.00%, Due 4/01/12 323,521 346,913
Pool #365418, 7.224%, Due 1/01/23 448,124 458,593
FNMA Guaranteed Real Estate Mortgage
Investment Conduit Adjustable Rate Mortgage
Securities, Pool #103102, 6.153%, Due 3/01/18 3,144,862 3,170,785
FNMA Guaranteed Real Estate Mortgage
Investment Conduit Pass-Thru Certificates,
10.50%, Due 8/01/20 372,076 404,601
FNMA Guaranteed Real Estate Mortgage
Investment Conduit Variable Rate Pass-Thru
Certificates, Pool #313629, 8.50%, Due 11/25/02 2,357,208 2,432,787
GNMA Guaranteed Pass-Thru Certificates,
Pool #234503, 9.50%, Due 12/15/17 4,559,206 4,941,853
United States Treasury Notes, 6.25%,
Due 5/31/00 4,250,000 4,373,518
---------
18,492,419
- --------------------------------------------------------------------------------
Total Government & Agency Issues (Cost $35,929,085) 36,520,325
- --------------------------------------------------------------------------------
NON-AGENCY MORTGAGE & ASSET-BACKED SECURITIES 30.8%
Citicorp Mortgage Securities, Inc. Real Estate
Mortgage Investment Conduit Pass-Thru
Certificates, Series 1993-3, Class B1, 7.00%,
Due 3/25/08 (Acquired 10/23/96; Cost $782,094)(d) 793,815 777,447
Collateralized Mortgage Obligation Trust
Certificates, Series 14, Class Z, 8.00%,
Due 1/01/17 2,260,886 2,276,051
DLJ Acceptance Trust Collateralized Mortgage
Obligation Certificates, Series 1989-1,
Class F, 11.00%, Due 8/01/19 2,520,857 2,818,834
DLJ Mortgage Acceptance Corporation Variable
Rate Mortgage Pass-Thru Certificates:
Series 1990-2, Class A, 7.3385%, Due 1/25/22 1,172,069 1,208,429
Series 1991-3, Class A1, 7.1861%, Due 2/20/21 1,165,169 1,203,118
22
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
STRONG SHORT-TERM GLOBAL BOND FUND (CONTINUED)
================================================================================
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Kmart CMBS Financing, Inc. Floating Rate
Commercial Mortgage Pass-Thru Certificates,
Series 1997-1, Class D, 6.3195%, Due 3/01/07
(Acquired 2/21/97; Cost $2,000,000) (d) $2,000,000 $ 1,937,500
Merrill Lynch Credit Corporation Mortgage
Investors, Inc. Senior Subordinated Variable
Rate Mortgage Pass-Thru Certificates, Series
1994-A, Class A4, 7.165%, Due 7/15/19 1,052,500 1,066,658
Merrill Lynch Home Equity Acceptance, Inc.
Subordinated Variable Rate Mortgage-Backed
Certificates, Series 1994-A, Class A-1, 6.6875%,
Due 8/17/23 46,573 46,180
NPF IX, Inc. 1997-1A Healthcare Receivables
Notes, Class A, 6.339%, Due 7/01/00 (Acquired
7/24/97 - 7/08/98; Cost $2,949,679) (d) 2,950,000 2,967,523
RTC Mortgage Pass-Thru Securities, Inc.
Mortgage Pass-Thru Certificates, Series
1992-18P, Class B-5, 7.50%, Due 1/25/21
(Acquired 9/10/97; Cost $1,071,743) (d) 1,067,739 1,069,746
RTC Variable Rate Mortgage Pass-Thru
Securities, Inc.:
Series 1992-C8, Class A2, 7.0375%, Due 12/25/23 970,896 972,910
Series 1992-6, Class B-9, 6.5475%, Due 11/25/26 570,815 571,492
Series 1992-15, Class B-7, 6.6425%, Due 7/25/27 1,743,000 1,745,832
Series 1992-16, Class A-4, 7.4079%, Due 8/25/22 14,932 15,090
Series 1992-16, Class B-3, 10.5648%, Due 5/25/24 1,500,048 1,496,298
Series 1995-1, Class B-5, 6.9348%, Due 10/25/28 267,742 271,376
Ryland Mortgage Securities Corporation Senior
Mortgage Partnership Variable Rate Securities,
Series 1989-1, Class A, Perpetual Savings Bank,
7.5199%, Due 2/25/19 167,190 166,745
Ryland Mortgage Securities Corporation Senior
Mortgage Partnership Variable Rate Securities:
Series 1990-C1, Class A, 6.308%, Due 10/25/20 730,624 731,654
Series 1991-B1, Class 1, 7.1835%, Due 3/25/20 571,690 592,774
Series 1992-3, Class A-2, 7.2812%, Due 6/25/20 607,811 607,051
Western Federal Savings and Loan Association
Real Estate Mortgage Investment Conduit
Pass-Thru Certificates, Series 1989-5, Class A,
6.831%, Due 7/25/19 671,040 670,506
- --------------------------------------------------------------------------------
Total Non-Agency Mortgage & Asset-Backed Securities
(Cost $23,072,277) 23,213,214
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (a) 7.0%
COMMERCIAL PAPER 0.1%
INTEREST BEARING, DUE UPON DEMAND
UNITED STATES
United States Cayman Eurodollar Call
Deposit, 4.25% 61,000 61,000
GOVERNMENT & AGENCY ISSUES 0.2%
UNITED STATES
United States Treasury Bills, Due 2/18/99 (c) 120,000 118,551
TIME DEPOSITS 6.7%
UNITED STATES
Westdeutsche Landesbank Gironzentrale Grand
Cayman, 5.6875%, Due 11/02/98 5,100,000 5,100,000
- --------------------------------------------------------------------------------
Total Short-Term Investments (Cost $5,279,214) 5,279,551
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Total Investments in Securities (Cost $75,756,939) 100.1% 75,460,703
Other Assets and Liabilities, Net (0.1%) (57,693)
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $75,403,010
================================================================================
- --------------------------------------------------------------------------------
FUTURES
- --------------------------------------------------------------------------------
Underlying Unrealized
Expiration Face Amount Appreciation
Date at Value (Depreciation)
- --------------------------------------------------------------------------------
Purchased:
20 Ten-Year German Government Bonds 12/98 $3,389,989 ($10,792)
2 Ten-Year United Kingdom Government
Bonds 12/98 383,942 11,455
Sold:
9 Ten-Year Australian Government Bonds 12/98 870,027 (43,808)
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
- --------------------------------------------------------------------------------
Unrealized
Settlement Value Appreciation
Date in USD (Depreciation)
- --------------------------------------------------------------------------------
Sold:
2,375,000 AUD 2/12/99 $1,482,435 ($ 58,385)
13,542,000 DEM 2/12/99 8,225,468 (536,393)
4,560,000 DKK 4/06/99 727,540 662
506,000,000 GRD 4/21/99 1,752,206 5,044
5,805,000,000 ITL 2/16/99 3,561,684 518
4,430,000 NZD 2/12/99 2,347,088 (113,039)
CURRENCY ABBREVIATIONS
- --------------------------------------------------------------------------------
AUD Australian Dollar
CAD Canadian Dollar
DEM German Mark
DKK Danish Krona
FIM Finnish Mark
FRF French Franc
GBP British Pound
GRD Greek Drachma
ITL Italian Lira
JPY Japanese Yen
NZD New Zealand Dollar
USD United States Dollar
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.
(e) Affiliated issuer. (See Note 7 of Notes to Financial Statements.)
(f) Due to the restrictions imposed by the Malaysian government, these
securities have been deemed to be illiquid by the Advisor and have been
recorded at estimated fair value.
Percentages are stated as a percent of net assets.
See Notes to Financial Statements.
23
<PAGE>
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
- ------------------------------------------------------------------------------------------------------------------------------------
October 31, 1998
(In Thousands, Except Per Share Amounts)
<CAPTION>
STRONG ASIA STRONG FOREIGN STRONG INTERNATIONAL STRONG
PACIFIC FUND MAJORMARKETS FUND STOCK FUND OVERSEAS FUND
------------ ----------------- -------------------- -------------
ASSETS:
Investments in Securities, at Value
Unaffiliated Issuers (Cost of $23,694, $1,466,
<S> <C> <C> <C> <C>
$91,520 and $2,572, respectively) $21,615 $1,389 $ 92,386 $2,626
Affiliated Issuers (Cost of $0, $0, $635 and
$0, respectively) -- -- 635 --
Receivable for Securities and Forward Foreign
Currency Contracts Sold 680 1 -- 82
Receivable for Fund Shares Sold 66 -- 200 --
Dividends and Interest Receivable 89 3 190 3
Other Assets 623 105 2,779 155
------- ------ ------- ------
Total Assets 23,073 1,498 96,190 2,866
LIABILITIES:
Payable for Securities and Forward Foreign Currency
Contracts Purchased 255 -- -- 101
Payable for Fund Shares Redeemed 1,044 -- 3 --
Accrued Operating Expenses and Other Liabilities 64 34 167 38
------- ------ -------- ------
Total Liabilities 1,363 34 170 139
------- ------ -------- ------
NET ASSETS $21,710 $1,464 $ 96,020 $2,727
======= ====== ======== ======
NET ASSETS CONSIST OF:
Capital Stock (par value and paid-in capital) $43,127 $1,568 $156,513 $3,366
Accumulated Net Investment Income (Loss) (239) -- (99) (94)
Accumulated Net Realized Loss (18,972) (28) (61,260) (599)
Net Unrealized Appreciation (Depreciation) (2,206) (76) 866 54
------- ------ -------- ------
Net Assets $21,710 $1,464 $ 96,020 $2,727
======= ====== ======== ======
Capital Shares Outstanding (Unlimited Number Authorized) 3,995 157 10,729 332
NET ASSET VALUE PER SHARE $5.43 $9.31 $8.95 $8.20
===== ===== ===== =====
</TABLE>
<TABLE>
<CAPTION>
STRONG GLOBAL STRONG STRONG
HIGH-YIELD INTERNATIONAL SHORT-TERM
BOND FUND BOND FUND GLOBAL BOND FUND
------------- ------------- ----------------
ASSETS:
Investments in Securities, at Value
<S> <C> <C> <C>
(Cost of $1,594, $18,416 and $75,757, respectively) $1,515 $19,094 $75,461
Receivable for Forward Foreign Currency Contracts Sold -- 1,092 113
Receivable for Fund Shares Sold -- 14 --
Interest Receivable 24 566 1,294
Other Assets 27 -- --
------ ------- -------
Total Assets 1,566 20,766 76,868
LIABILITIES:
Payable for Forward Foreign Currency Contracts Purchased -- 244 972
Payable for Fund Shares Redeemed -- 285 26
Dividends Payable 9 -- 390
Accrued Operating Expenses and Other Liabilities 35 78 77
------ ------- -------
Total Liabilities 44 607 1,465
------ ------- -------
NET ASSETS $1,522 $20,159 $75,403
====== ======= =======
NET ASSETS CONSIST OF:
Capital Stock (par value and paid-in capital) $2,036 $19,294 $79,496
Accumulated Net Investment Income -- 163 1,117
Accumulated Net Realized Loss (435) (871) (4,206)
Net Unrealized Appreciation (Depreciation) (79) 1,573 (1,004)
------ ------- -------
Net Assets $1,522 $20,159 $75,403
====== ======= =======
Capital Shares Outstanding (Unlimited Number Authorized) 175 1,695 7,418
NET ASSET VALUE PER SHARE $8.71 $11.89 $10.17
===== ====== ======
See Notes to Financial Statements.
</TABLE>
24
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS
- ----------------------------------------------------------------------------------------------------------------------------------
For the Year Ended October 31, 1998 (Note 1)
(In Thousands)
<CAPTION>
STRONG STRONG STRONG STRONG STRONG STRONG
ASIA FOREIGN INTERNATIONAL STRONG GLOBAL INTERNATIONAL SHORT-TERM
PACIFIC MAJORMARKETS STOCK OVERSEAS HIGH-YIELD BOND GLOBAL
FUND FUND FUND FUND BOND FUND FUND BOND FUND
------- ------------ ------------- -------- ---------- --------=---- ----------
INCOME:
Dividends (net of withholding taxes
of $41, $0, $200, $1, $0, $2 and $0
<S> <C> <C> <C> <C> <C> <C> <C>
respectively) $ 427 $ 4 $ 2,166 $ 6 $ 4 $ 40 $ 111
Interest 303 2 277 6 322 1,463 6,118
-------- ----- ------- ----- ----- ------ ------
Total Income 730 6 2,443 12 326 1,503 6,229
EXPENSES:
Investment Advisory Fees 234 4 1,330 10 25 153 579
Custodian Fees 196 3 414 7 18 58 74
Shareholder Servicing Costs 179 2 590 4 4 56 183
Professional Fees 15 -- 29 -- 7 13 16
Reports to Shareholders 53 -- 106 -- 4 8 25
Federal and State Registration Fees 24 5 31 6 30 24 39
Organizational Expense 23 -- -- -- -- 27 26
Other 5 1 13 1 3 8 9
-------- ----- ------- ----- ----- ------ ------
Total Expenses before Waivers 729 15 2,513 28 91 347 951
Expense Waivers by Advisor (266) (6) -- (9) (20) (23) (85)
-------- ----- ------- ----- ----- ------ ------
Expenses, Net 463 9 2,513 19 71 324 866
-------- ----- ------- ----- ----- ------ ------
NET INVESTMENT INCOME (LOSS) 267 (3) (70) (7) 255 1,179 5,363
REALIZED AND UNREALIZED GAIN (LOSS):
Net Realized Gain (Loss) on:
Investments (16,514) (27) (58,875) (598) (443) (5,800) (12,536)
Futures Contracts, Options and Forward
Foreign Currency Contracts 277 (7) (1,301) (88) 8 4,685 9,060
Foreign Currencies (9) -- (20) -- -- 175 361
-------- ----- ------- ----- ----- ------ ------
Net Realized Loss (16,246) (34) (60,196) (686) (435) (940) (3,115)
Change in Unrealized Appreciation/
Depreciation on:
Investments 9,494 (77) 34,069 54 (79) 2,691 4,169
Futures Contracts, Options and Forward
Foreign Currency Contracts (361) 1 (605) -- -- (1,182) (2,788)
Foreign Currencies 146 -- 126 -- -- 53 33
-------- ----- -------- ----- ----- ------ ------
Net Change in Unrealized
Appreciation/Depreciation 9,279 (76) 33,590 54 (79) 1,562 1,414
-------- ----- -------- ----- ----- ------ ------
NET GAIN (LOSS) ON INVESTMENTS (6,967) (110) (26,606) (632) (514) 622 (1,701)
-------- ----- -------- ----- ----- ------ ------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS ($ 6,700) ($113) ($26,676) ($639) ($259) $1,801 $3,662
======== ===== ======== ===== ===== ====== ======
See Notes to Financial Statements.
25
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------
(In Thousands)
<CAPTION>
STRONG ASIA STRONG FOREIGN
PACIFIC FUND MAJORMARKETS FUND
-------------------------------- -----------------
Year Ended Year Ended Year Ended
Oct. 31, 1998 Oct. 31, 1997 Oct. 31, 1998
------------- ------------- -------------
(Note 1)
OPERATIONS:
<S> <C> <C> <C>
Net Investment Income (Loss) $ 267 $ 38 ($ 3)
Net Realized Gain (Loss) (16,246) (2,518) (34)
Net Change in Unrealized Appreciation/Depreciation 9,279 (5,548) (76)
------- -------- ------
Net Decrease in Net Assets Resulting from Operations (6,700) (8,028) (113)
DISTRIBUTIONS:
From Net Investment Income (267) (39) --
In Excess of Net Investment Income (84) (181) --
From Net Realized Gains -- (749) --
In Excess of Net Realized Gains -- (117) --
------- -------- ------
Total Distributions (351) (1,086) --
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold 52,969 70,733 1,990
Proceeds from Reinvestment of Distributions 335 1,050 --
Payment for Shares Redeemed (54,629) (104,622) (413)
------- -------- ------
Increase (Decrease) in Net Assets from Capital Share
Transactions (1,325) (32,839) 1,577
------- -------- ------
TOTAL INCREASE (DECREASE) IN NET ASSETS (8,376) (41,953) 1,464
NET ASSETS:
Beginning of Year 30,086 72,039 --
------- -------- ------
End of Year $21,710 $ 30,086 $1,464
======= ======== ======
TRANSACTIONS IN SHARES OF THE FUND:
Sold 9,078 7,557 203
Issued in Reinvestment of Distributions 50 110 --
Redeemed (9,224) (11,147) (46)
------ ------ ---
Increase (Decrease) in Shares of the Fund (96) (3,480) 157
====== ====== ===
</TABLE>
<TABLE>
<CAPTION>
STRONG INTERNATIONAL STRONG
STOCK FUND OVERSEAS FUND
------------------------------- -------------
Year Ended Year Ended Year Ended
Oct. 31, 1998 Oct. 31, 1997 Oct. 31, 1998
------------- ------------- -------------
(Note 1)
OPERATIONS:
<S> <C> <C> <C>
Net Investment Income (Loss) ($ 70) $ 1,534 ($ 7)
Net Realized Gain (Loss) (60,196) 10,333 (686)
Net Change in Unrealized Appreciation/Depreciation 33,590 (16,088) 54
-------- -------- ------
Net Increase (Decrease) in Net Assets Resulting
from Operations (26,676) (4,221) (639)
DISTRIBUTIONS:
From Net Investment Income -- (1,534) --
In Excess of Net Investment Income (3,779) (3,812) --
From Net Realized Gains (3,501) (17,009) --
-------- -------- ------
Total Distributions (7,280) (22,355) --
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold 116,828 189,644 4,935
Proceeds from Reinvestment of Distributions 7,097 21,807 --
Payment for Shares Redeemed (174,055) (308,666) (1,569)
-------- -------- ------
Increase (Decrease) in Net Assets from Capital
Share Transactions (50,130) (97,215) 3,366
-------- -------- ------
TOTAL INCREASE (DECREASE) IN NET ASSETS (84,086) (123,791) 2,727
NET ASSETS:
Beginning of Year 180,106 303,897 --
-------- -------- ------
End of Year $ 96,020 $180,106 $2,727
======== ======== ======
TRANSACTIONS IN SHARES OF THE FUND:
Sold 11,039 13,682 516
Issued in Reinvestment of Distributions 655 1,630 --
Redeemed (15,984) (22,390) (184)
------ ------ ---
Increase (Decrease) in Shares of the Fund (4,290) (7,078) 332
====== ====== ===
26
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------
(In Thousands)
<CAPTION>
STRONG GLOBAL STRONG INTERNATIONAL
HIGH-YIELD BOND FUND BOND FUND
-------------------- --------------------------------
Year Ended Year Ended Year Ended
Oct. 31, 1998 Oct. 31, 1998 Oct. 31, 1997
------------- ------------- -------------
(Note 1)
OPERATIONS:
<S> <C> <C> <C>
Net Investment Income $ 255 $ 1,179 $ 2,545
Net Realized Loss (435) (940) (2,016)
Net Change in Unrealized Appreciation/Depreciation (79) 1,562 (882)
------- ------- -------
Net Increase (Decrease) in Net Assets Resulting
from Operations (259) 1,801 (353)
DISTRIBUTIONS:
From Net Investment Income (255) (1,288) (585)
In Excess of Net Realized Gains -- (579) (42)
------- ------- -------
Total Distributions (255) (1,867) (627)
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold 10,304 11,254 25,686
Proceeds from Reinvestment of Distributions 215 1,719 589
Payment for Shares Redeemed (8,483) (20,952) (28,190)
------- ------- -------
Increase (Decrease) in Net Assets from Capital
Share Transactions 2,036 (7,979) (1,915)
------- ------- -------
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,522 (8,045) (2,895)
NET ASSETS:
Beginning of Year -- 28,204 31,099
------- ------- -------
End of Year $ 1,522 $20,159 $28,204
======= ======= =======
TRANSACTIONS IN SHARES OF THE FUND:
Sold 1,023 1,025 2,239
Issued in Reinvestment of Distributions 22 164 50
Redeemed (870) (1,930) (2,472)
--- ----- -----
Increase (Decrease) in Shares of the Fund 175 (741) (183)
=== ===== =====
</TABLE>
<TABLE>
<CAPTION>
STRONG SHORT-TERM
GLOBAL BOND FUND
---------------------------------------
Year Ended Year Ended
Oct. 31, 1998 Oct. 31, 1997
------------- -------------
OPERATIONS:
<S> <C> <C>
Net Investment Income $ 5,363 $ 6,786
Net Realized Gain (Loss) (3,115) 2,142
Net Change in Unrealized Appreciation/Depreciation 1,414 (3,551)
-------- --------
Net Increase in Net Assets Resulting from Operations 3,662 5,377
DISTRIBUTIONS:
From Net Investment Income (5,363) (7,236)
In Excess of Net Investment Income (281) (1,002)
From Net Realized Gains (778) --
-------- --------
Total Distributions (6,422) (8,238)
CAPITAL SHARE TRANSACTIONS:
Proceeds from Shares Sold 49,328 147,712
Proceeds from Reinvestment of Distributions 6,320 6,904
Payment for Shares Redeemed (93,209) (106,904)
-------- --------
Increase (Decrease) in Net Assets from Capital
Share Transactions (37,561) 47,712
-------- --------
TOTAL INCREASE (DECREASE) IN NET ASSETS (40,321) 44,851
NET ASSETS:
Beginning of Year 115,724 70,873
-------- --------
End of Year $ 75,403 $115,724
======== ========
TRANSACTIONS IN SHARES OF THE FUND:
Sold 4,741 13,724
Issued in Reinvestment of Distributions 608 647
Redeemed (8,972) (9,933)
------ -----
Increase (Decrease) in Shares of the Fund (3,623) 4,438
====== =====
27
</TABLE>
See Notes to Financial Statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
October 31, 1998
1. ORGANIZATION
The accompanying financial statements represent the Strong International
Funds, which include the following diversified and non-diversified,
open-end management investment companies registered under the Investment
Company Act of 1940:
- Strong Asia Pacific Fund, Inc.*
- Strong Foreign MajorMarkets Fund (a series of Strong International
Equity Funds, Inc.)*
- Strong International Stock Fund (a series of Strong International
Equity Funds, Inc.)*
- Strong Overseas Fund (a series of Strong International Equity Funds,
Inc.)*
- Strong Global High-Yield Bond Fund (a series of Strong International
Income Funds, Inc.)**
- Strong International Bond Fund (a series of Strong International
Income Funds, Inc.)**
- Strong Short-Term Global Bond Fund, Inc.*
* Diversified fund
** Non-diversified fund
The inception date for Strong Global High-Yield Bond Fund is January 31,
1998. The inception date for Strong Foreign MajorMarkets Fund and Strong
Overseas Fund is June 30, 1998.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Funds in the preparation of their financial statements.
(A) Security Valuation -- 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 fair
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 October 31, 1998 were as follows:
<TABLE>
<CAPTION>
Aggregate Aggregate Percent of
Cost Fair Value Net Assets Liquid*
---------- ----------- ---------- -------
<S> <C> <C> <C> <C>
Strong Asia Pacific Fund $ 61,403 $ 100,801 0.5% 100.0%
Strong International Stock Fund 4,106,186 2,246,848 2.3% 0.0%
Strong Overseas Fund 20,012 22,807 0.8% 0.0%
Strong Global High-Yield Bond Fund 305,484 306,899 20.2% 99.7%
Strong International Bond Fund 1,871,535 1,797,528 8.9% 43.8%
Strong Short-Term Global Bond Fund 8,281,624 8,130,439 10.8% 100.0%
</TABLE>
*Percentage of aggregate fair value of restricted securities is either
Section 4(2) commercial paper or is eligible for resale pursuant to
Rule 144A under the Securities Act of 1933 and also has been
determined to be liquid by the Advisor based upon guidelines
established by the Funds' Board of Directors.
(B) Federal Income and Excise Taxes and Distributions to Shareholders --
The Funds intend to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute substantially all of their taxable income to their
shareholders in a manner which results in no tax cost to the Funds.
Therefore, no Federal income or excise tax provision is required.
The character of distributions made during the year from net
investment income or net realized gains may differ from the
characterization for federal income tax purposes due to differences in
the recognition of income and expense items for financial statement
and tax purposes. Where appropriate, reclassifications between net
asset accounts are made for such differences that are permanent in
nature.
(C) Realized Gains and Losses on Investment Transactions -- Gains or
losses realized on investment transactions are determined by comparing
the identified cost of the security lot sold with the net sales
proceeds.
(D) Certain Investment Risks -- The Funds may utilize derivative
instruments including options, futures and other instruments with
similar characteristics to the extent that they are consistent with
the Fund's investment objectives and limitations. The Funds intend to
use such derivative instruments primarily to hedge or protect from
adverse movements in securities prices or interest rates. The use of
these instruments may involve risks such as the possibility of
illiquid markets or imperfect correlation between the value of the
instruments and the underlying securities, or that the counterparty
will fail to perform its obligations.
28
<PAGE>
- --------------------------------------------------------------------------------
Foreign denominated assets and forward currency contracts may involve
greater risks than domestic transactions, including currency,
political and economic, regulatory and market risks.
(E) 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. Additional securities held by
the Funds may be designated as collateral on open futures contracts.
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.
(F) 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.
(G) 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.
(H) 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.
(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 in these financial statements. 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. 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 of the respective Fund: Strong Asia Pacific Fund, Strong
Foreign MajorMarkets Fund, Strong International Stock Fund and Strong
Overseas Fund 1.00%, Strong Global High-Yield Bond Fund and Strong
International Bond Fund 0.70%, and Strong Short-Term Global Bond Fund
0.625%. Based on the terms of the Advisory Agreements, advisory fees and
other expenses will be waived by the Advisor if the Fund's operating
expenses exceed 2% of the average daily net assets of the Fund. In
addition, the Fund's Advisor may voluntarily waive certain expenses at
their discretion. During 1998, the Advisor voluntarily waived expenses of
$5,896, $6,176, $19,584, $22,692, $9,453, and $84,626 for Strong Asia
Pacific Fund, Strong Foreign MajorMarkets Fund, Strong Global High Yield
Bond Fund, Strong International Bond Fund, Strong Overseas Fund, and Strong
Short-Term Global Bond Fund, respectively. Shareholder recordkeeping and
related service fees are based on contractually established rates for each
open and closed shareholder account. 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 the Advisor, subject to certain limitations. The terms of such
transactions are identical to those of non-related entities except that, to
avoid duplicate investment advisory fees, advisory fees of each Fund
invested in such money market funds are reduced by an amount equal to
advisory fees paid to the Advisor under its investment advisory agreements
with the money market funds.
29
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
October 31, 1998
Certain information regarding related party transactions for the year ended
October 31, 1998 is as follows:
<TABLE>
<CAPTION>
Other Shareholder
Payable to Servicing Unaffiliated
Advisor at Expenses Paid Directors'
October 31, 1998 to Advisor Fees
---------------- ----------------- ------------
<S> <C> <C> <C>
Strong Asia Pacific Fund $13,208 $1,072 $1,500
Strong Foreign MajorMarkets Fund 1,412 -- --
Strong International Stock Fund 19,397 6,569 3,408
Strong Overseas Fund 2,763 -- --
Strong Global High-Yield Bond Fund 14,645 51 750
Strong International Bond Fund 35,290 1,238 1,500
Strong Short-Term Global Bond Fund 38,480 2,345 1,500
</TABLE>
The Advisor owns 63.6% and 60.2% of Strong Foreign MajorMarkets Fund and
Strong Overseas Fund, respectively.
4. LINE OF CREDIT
The Funds have established a line of credit agreement ("LOC") with certain
financial institutions to be used for temporary or emergency purposes,
primarily for financing redemption payments. Combined borrowings among all
participating Strong Funds are subject to a $350 million cap on the total
line of credit. For individual funds, borrowings under the LOC are limited
to either the lesser of 15% of the market value of total assets or any
explicit borrowing limits in the Funds' prospectus. Borrowings under the
LOC bear interest based on prevailing market rates as defined in the LOC. A
commitment fee of .07% per annum is incurred on the unused portion of the
line of credit and is allocated to all participating Strong Funds. At
October 31, 1998, there were no borrowings by the Strong Funds outstanding
under the LOC.
5. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of long-term securities for the year
ended October 31, 1998 were as follows:
<TABLE>
<CAPTION>
Purchases Sales
----------------------------- ------------------------------
U.S. Government U.S. Government
and Agency Other and Agency Other
--------------- ------------ --------------- ------------
<S> <C> <C> <C> <C>
Strong Asia Pacific Fund $ -- $ 40,575,796 $ -- $ 35,775,625
Strong Foreign MajorMarkets Fund -- 1,708,130 -- 216,199
Strong International Stock Fund -- 291,154,132 -- 334,122,616
Strong Overseas Fund -- 4,812,722 -- 1,707,175
Strong Global High-Yield Bond Fund -- 28,749,875 -- 27,126,654
Strong International Bond Fund 1,264,766 25,241,877 -- 26,322,817
Strong Short-Term Global Bond Fund 25,439,617 93,587,285 20,678,218 121,552,200
</TABLE>
6. INCOME TAX INFORMATION
At October 31, 1998, the investment cost, gross unrealized appreciation and
depreciation on investments and capital loss carryovers for federal income
tax purposes were as follows:
<TABLE>
<CAPTION>
Federal Tax Unrealized Unrealized Net Appreciation/ Net Capital Loss
Cost Appreciation Depreciation Depreciation Carryovers
----------- ------------ ------------ ----------------- ----------------
<S> <C> <C> <C> <C> <C>
Strong Asia Pacific Fund $24,142,830 $1,955,388 ($4,483,335) ($2,527,947) $18,476,100
Strong Foreign MajorMarkets Fund 1,477,915 49,053 (137,558) (88,505) 15,990
Strong International Stock Fund 94,194,001 7,252,171 (8,425,476) (1,173,305) 59,220,773
Strong Overseas Fund 2,677,118 145,171 (195,756) (50,585) 493,445
Strong Global High-Yield Bond Fund 1,602,268 13,005 (100,594) (87,589) 426,285
Strong International Bond Fund 18,415,771 970,834 (292,582) 678,252 871,161
Strong Short-Term Global Bond Fund 75,757,494 1,750,131 (2,046,922) (296,791) 4,205,020
</TABLE>
Capital loss carryovers expire in varying amounts through 2006.
During the year ended October 31, 1998, the Funds paid capital gains
distributions (taxable as long-term capital gains at 20%) to shareholders
as follows (unaudited): Strong Asia Pacific Fund $0, Strong Foreign
MajorMarkets Fund $0, Strong International Stock Fund $0, Strong Overseas
Fund $0, Strong Global High-Yield Bond Fund $0, Strong International Bond
Fund $216,804, and Strong Short-Term Global Bond Fund $28,958.
For corporate shareholders in the Funds, the percentages of dividend income
distributed for the year ended October 31, 1998, which are designated as
qualifying for the dividends-received deduction are (unaudited): Strong
Asia Pacific Fund 0.8%, Strong Foreign MajorMarkets Fund 0.0%, Strong
International Stock Fund 0.0%, Strong Overseas Fund 0.0%, Strong Global
High-Yield Bond Fund 1.5%, Strong International Bond Fund 2.6%, and Strong
Short-Term Global Bond Fund 1.2%.
30
<PAGE>
- --------------------------------------------------------------------------------
7. INVESTMENTS IN AFFILIATES
Affiliated issuers, as defined under the Investment Company Act of 1940,
include those in which the Fund's holdings of an issuer represent 5% or
more of the outstanding voting securities of the issuer and any other
Strong Fund. A summary of transactions in the securities of these issuers
during the year ended October 31, 1998 is as follows:
<TABLE>
<CAPTION>
Balance of Balance of Dividend
Shares Held Gross Gross Sales Shares Held Value Income
November 1, Purchases and October 31, October 31, Nov. 1, 1997 -
1997 and Additions Reductions 1998 1998 Oct. 31, 1998
----------- ------------- ----------- ----------- ----------- --------------
STRONG INTERNATIONAL STOCK FUND
- -------------------------------
<S> <C> <C> <C> <C> <C> <C>
Connemara Green Marble Quarries PLC 50,800 -- -- 50,800 $635,000 --
Connemara Green Marble Quarries PLC
Warrants -- 8,000 -- 8,000 -- --
</TABLE>
31
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------------------------------------------------------------------------------
STRONG ASIA PACIFIC 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
Year Ended of Period Income Investments Operations Income Income Gains Gains Distributions Period
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Oct. 31, 1998 $ 7.35 $0.07 ($1.90) ($1.83) ($0.07) ($0.02) -- -- ($0.09) $5.43
Oct. 31, 1997 9.51 0.01 (2.01) (2.00) (0.01) (0.03) ($0.10) ($0.02) (0.16) 7.35
Oct. 31, 1996 9.55 0.06 0.31 0.37 (0.06) (0.35) -- -- (0.41) 9.51
Oct. 31, 1995 (b) 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>
Ratios and Supplemental Data
-----------------------------------------------------------------------
<CAPTION>
Net Ratio of Net
Assets, Ratio of Investment
End of Expenses Income Portfolio
Total Period (In to Average to Average Turnover
Year Ended Return Millions) Net Assets Net Assets Rate
<S> <C> <C> <C> <C> <C>
Oct. 31, 1998 -25.1% $22 2.0% 1.1% 192.9%
Oct. 31, 1997 -21.5% 30 2.0% 0.1% 96.7%
Oct. 31, 1996 +3.8% 72 2.3% 0.2% 91.4%
Oct. 31, 1995 (b) +2.6% 55 2.0%* 0.5%* 104.3%
Dec. 31, 1994 -5.3% 58 2.0% 0.6% 103.3%
</TABLE>
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
(b) In 1995, the Fund changed its fiscal year end from December to October.
Total return and portfolio turnover rate are not annualized.
<TABLE>
STRONG FOREIGN MAJORMARKETS FUND
- ------------------------------------------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(a)
---------------------------------------------------------------------------------------------------
Income From Investment Operations Less Distributions
------------------------------------------ --------------------------
<CAPTION>
Net Asset Net Realized Total Net Asset
Value, Net and Unrealized from From Net Value,
Beginning Investment Losses on Investment Investment Total End of
Year Ended of Period Income Investments Operations Income Distributions Period
<S> <C> <C> <C> <C> <C> <C> <C>
Oct. 31, 1998 (b) $10.00 ($0.01) ($0.68) ($0.69) -- -- $9.31
</TABLE>
<TABLE>
Ratios and Supplemental Data
-----------------------------------------------------------------------
<CAPTION>
Net Ratio of Net
Assets, Ratio of Investment
End of Expenses Income Portfolio
Total Period (In to Average to Average Turnover
Year Ended Return Millions) Net Assets Net Assets Rate
<S> <C> <C> <C> <C> <C>
Oct. 31, 1998 (b) -6.9% $1 2.0%* -0.5%* 16.5%
</TABLE>
* 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 period from June 30, 1998 (inception) to October 31, 1998. Total
return and portfolio turnover rate are not annualized.
<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
Year Ended of Period Income Investments Operations Income Income Gains Gains Distributions Period
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Oct. 31, 1998 $11.99 $0.00 (b) ($2.48) ($2.48) ($0.00) (b) ($0.30) ($0.26) -- ($0.56) $ 8.95
Oct. 31, 1997 13.75 0.01 (0.69) (0.68) (0.01) ($0.26) (0.81) -- (1.08) 11.99
Oct. 31, 1996 13.03 0.17 1.11 1.28 (0.18) (0.38) -- -- (0.56) 13.75
Oct. 31, 1995 (c) 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
</TABLE>
<TABLE>
Ratios and Supplemental Data
-----------------------------------------------------------------------
<CAPTION>
Net Ratio of Net
Assets, Ratio of Investment
End of Expenses Income Portfolio
Total Period (In to Average to Average Turnover
Year Ended Return Millions) Net Assets Net Assets Rate
<S> <C> <C> <C> <C> <C>
Oct. 31, 1998 -21.4% $ 96 1.9% -0.1% 228.2%
Oct. 31, 1997 -5.7% 180 1.6% 0.5% 143.7%
Oct. 31, 1996 +9.8% 304 1.7% 0.6% 108.6%
Oct. 31, 1995 (c) +3.6% 211 1.8%* 0.8%* 102.0%
Dec. 31, 1994 -1.6% 258 1.7% 0.3% 136.5%
</TABLE>
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
(b) Amount calculated is less than $0.00.
(c) In 1995, the Fund changed its fiscal year end from December to October.
Total return and portfolio turnover rate are not annualized.
<TABLE>
STRONG OVERSEAS FUND
- ------------------------------------------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(a)
-----------------------------------------------------------------------------------------------
Income From Investment Operations Less Distributions
------------------------------------------ ---------------------------
<CAPTION>
Net Asset Net Realized Total Net Asset
Value, Net and Unrealized from From Net Value,
Beginning Investment Losses on Investment Investment Total End of
Year Ended of Period Loss Investments Operations Income Distributions Period
<S> <C> <C> <C> <C> <C> <C> <C>
Oct. 31, 1998 (b) $10.00 ($0.02) ($1.78) ($1.80) -- -- $8.20
</TABLE>
<TABLE>
Ratios and Supplemental Data
-----------------------------------------------------------------------
<CAPTION>
Net Ratio of Net
Assets, Ratio of Investment
End of Expenses Income Portfolio
Total Period (In to Average to Average Turnover
Year Ended Return Millions) Net Assets Net Assets Rate
<S> <C> <C> <C> <C> <C>
Oct. 31, 1998 (b) -18.0% $3 2.0%* -0.7%* 59.5%
</TABLE>
* 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 period from June 30, 1998 (inception) to October 31, 1998. Total
return and portfolio turnover rate are not annualized.
32
See Notes to Financial Statements.
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------
STRONG GLOBAL HIGH-YIELD BOND FUND
- ------------------------------------------------------------------------------------------------------------------
SELECTED PER-SHARE DATA(a)
-----------------------------------------------------------------------------------------------
Income From Investment Operations Less Distributions
------------------------------------------- ---------------------------
<CAPTION>
Net Realized
Net Asset and Unrealized Total Net Asset
Value, Net Gains from From Net Value,
Beginning Investment (Losses) on Investment Investment Total End of
Year Ended of Period Income Investments Operations Income Distributions Period
<S> <C> <C> <C> <C> <C> <C> <C>
Oct. 31, 1998 (b) $10.00 $0.53 ($1.29) ($0.76) ($0.53) ($0.53) $8.71
</TABLE>
<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
Year Ended Return Millions) Net Assets Absorptions Net Assets Rate
<S> <C> <C> <C> <C> <C> <C>
Oct. 31, 1998 (b) -8.0% $2 2.0%* 2.5%* 7.2%* 680.3%
</TABLE>
* 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 period from January 31, 1998 (inception) to October 31, 1998. Total
return and portfolio turnover rate are not annualized.
<TABLE>
STRONG INTERNATIONAL BOND 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
Year Ended of Period Income Investments Operations Income Income Gains Gains Distributions Period
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Oct. 31, 1998 $11.58 $0.57 $0.58 $1.15 ($0.58) -- -- ($0.26) ($0.84) $11.89
Oct. 31, 1997 11.87 1.03 (1.11) (0.08) (0.20) -- -- (0.01) (0.21) 11.58
Oct. 31, 1996 11.48 0.80 0.15 0.95 (0.50) -- ($0.06) -- (0.56) 11.87
Oct. 31, 1995 (b) 10.36 0.78 1.00 1.78 (0.66) -- -- -- (0.66) 11.48
Dec. 31, 1994 (c) 10.00 0.46 0.40 0.86 (0.46) ($0.02) -- (0.02) (0.50) 10.36
</TABLE>
<TABLE>
Ratios and Supplemental Data
--------------------------------------------------------------------------------------
<CAPTION>
Net Ratio of Ratio of Net
Assets, Ratio of Expenses to Investment
End of Expenses Average Net Income Portfolio
Total Period (In to Average Assets Without to Average Turnover
Year Ended Return Millions) Net Assets Waivers Net Assets Rate
<S> <C> <C> <C> <C> <C> <C>
Oct. 31, 1998 +10.9% $20 1.5% 1.6% 5.3% 158.8%
Oct. 31, 1997 -0.7% 28 0.7% 1.5% 8.1% 208.4%
Oct. 31, 1996 +8.6% 31 0.0% 1.8% 7.4% 258.3%
Oct. 31, 1995 (b) +17.3% 21 0.0%* 2.0%* 8.3%* 473.3%
Dec. 31, 1994 (c) +8.7% 10 0.0%* 2.0%* 7.9%* 679.3%
</TABLE>
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
(b) In 1995, the Fund changed its fiscal year end from December to October.
Total return and portfolio turnover rate are not annualized.
(c) Inception date is March 31, 1994. Total return and portfolio turnover rate
are not annualized.
<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 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
Year Ended of Period Income Investments Operations Income Income Gains Gains Distributions Period
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Oct. 31, 1998 $10.48 $0.60 ($0.21) $0.39 ($0.59) ($0.03) ($0.08) -- ($0.70) $10.17
Oct. 31, 1997 10.74 0.81 (0.10) 0.71 (0.85) (0.12) -- -- (0.97) 10.48
Oct. 31, 1996 10.46 0.71 0.34 1.05 (0.77) -- -- -- (0.77) 10.74
Oct. 31, 1995 (b) 10.15 0.65 0.20 0.85 (0.54) -- -- -- (0.54) 10.46
Dec. 31, 1994 (c) 10.00 0.35 0.16 0.51 (0.35) -- -- (0.01) (0.36) 10.15
</TABLE>
<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
Year Ended Return Millions) Net Assets Absorptions Net Assets Rate
<S> <C> <C> <C> <C> <C> <C>
Oct. 31, 1998 +3.8% $ 75 0.9% 1.0% 5.7% 145.2%
Oct. 31, 1997 +6.8% 116 0.7% 1.0% 7.6% 168.0%
Oct. 31, 1996 +10.4% 71 0.0% 1.5% 7.4% 179.7%
Oct. 31, 1995 (b) +8.5% 25 0.0%* 2.0%* 8.2%* 437.3%
Dec. 31, 1994 (c) +5.1% 20 0.0%* 1.7%* 7.7%* 287.8%
</TABLE>
* Calculated on an annualized basis.
(a) Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
(b) In 1995, the Fund changed its fiscal year end from December to October.
Total return and portfolio turnover rate are not annualized.
(c) Inception date is March 31, 1994. Total return and portfolio turnover rate
are not annualized.
See Notes to Financial Statements.
33
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Directors of the
Strong International Funds
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Strong Foreign MajorMarkets Fund,
Strong International Stock Fund, Strong Overseas Fund (three of the portfolios
constituting Strong International Equity Funds, Inc.), Strong Global High-Yield
Bond Fund, Strong International Bond Fund (two of the portfolios constituting
Strong International Income Funds, Inc.), Strong Asia Pacific Fund, Inc., and
Strong Short-Term Global Bond Fund, Inc. at October 31, 1998, the results of
each of their operations, the changes in each of their net assets and the
financial highlights for the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Funds' management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at October 31, 1998 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
Milwaukee, Wisconsin
December 8, 1998
34
<PAGE>
NOTES
- --------------------------------------------------------------------------------
35
<PAGE>
NOTES
- --------------------------------------------------------------------------------
36
<PAGE>
DIRECTORS
Richard S. Strong
Willie D. Davis
Stanley Kritzik
Marvin E. Nevins
William F. Vogt
OFFICERS
Richard S. Strong, Chairman of the Board
Mary F. Hoppa, Vice President
Thomas P. Lemke, Vice President
John S. Weitzer, Vice President
Stephen J. Shenkenberg, Vice President and Secretary
Dana J. Russart, Treasurer
INVESTMENT ADVISOR
Strong Capital Management, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
DISTRIBUTOR
Strong Funds Distributors, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
CUSTODIAN
Firstar Trust Company
P.O. Box 701, Milwaukee, Wisconsin 53201
TRANSFER AGENT AND DIVIDEND-DISBURSING AGENT
Strong Capital Management, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
100 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.strongfunds.com
[STRONG LOGO]
STRONG FUNDS
P.O. Box 2936 o Milwaukee, Wisconsin 53201
Strong Funds Distributors, Inc. 9778K98 AINT
