PLEASE FILE THIS PROSPECTUS SUPPLEMENT WITH YOUR RECORDS.
STRONG MID CAP GROWTH FUND II
Supplement to the Prospectus dated May 1, 2000
Effective immediately, the following information replaces the first two
paragraphs under "What are the fund's principal investment strategies?" on page
1 of the fund's prospectus:
The MID CAP GROWTH FUND II invests, under normal market conditions, at least 65%
of its assets in stocks of medium-capitalization companies that the fund's
managers believe have favorable prospects for growth of earnings and capital
appreciation. The fund defines "medium-capitalization companies" as companies
with a market capitalization substantially similar to that of companies in the
S&P MidCap 400 Index at the time of investment.
The fund can invest in futures and options transactions for hedging and risk
management purposes. Also, the fund writes put and call options. This means that
the fund sells an option to another party to either sell a stock to (put) or buy
a stock from (call) the fund at a predetermined price in the future. When the
fund writes put or call options, it will receive fees or premiums but is exposed
to losses due to changes in the value of the stock that the put or call is
written against. Writing options can serve as a limited or partial hedge against
adverse market movements. This is because declines in the value of the hedged
stock will be offset by the premium received for writing the option. Whether or
not this hedging strategy is successful depends on a variety of factors,
particularly the ability of the fund's managers to predict movements of the
price of the hedged stock. The managers' decision to engage in this hedging
strategy will reflect the managers' judgment that writing an option on a stock
will provide value to the fund and its shareholders. To a limited extent, the
fund may also invest in foreign securities. The managers may sell a holding when
there is a fundamental change in the outlook for the company (for example, a
change in management or reduction in earnings) or to take advantage of a better
investment opportunity. The fund's active trading approach may increase the
fund's costs, which may reduce the fund's performance. The fund's active trading
approach may also increase the amount of capital gains tax that you pay on the
fund's returns.
The date of this Prospectus Supplement is December 26, 2000.
