Filed Pursuant to Rule 497(k)(1)(ii)
[PIE CHART WITH STOCKS EMPHASIS]
FUND PROFILE
July 22, 1998
THE STRONG BLUE CHIP 100 FUND
THE STRONG DOW 30 VALUE FUND
THE STRONG INDEX 500 FUND
This profile summarizes key information about the Funds that is included in the
Funds' prospectus. The Funds' prospectus includes additional information about
the Funds, including a more detailed description of the risks associated with
investing in the Funds that you may want to consider before you invest. You may
obtain the prospectus and other information about the Funds at no cost by
calling 1-800-368-3863 or visiting our web site at www.strong-funds.com.
[STRONG LOGO]
STRONG FUNDS
1
<PAGE>
WHAT ARE THE FUNDS' GOALS?
The STRONG BLUE CHIP 100 FUND seeks total return by investing for capital
growth and income.
The STRONG DOW 30 VALUE FUND seeks capital growth.
The STRONG INDEX 500 FUND seeks to approximate (before fees and expenses) the
rate of return of the Standard & Poor's 500, an index of the largest stocks
traded in the U.S.
WHAT ARE THE FUNDS' PRINCIPAL INVESTMENT STRATEGIES?
The BLUE CHIP 100 FUND invests in the common stocks of the 100 largest
companies traded in the U.S. Half of the Fund's assets are invested in these
stocks in proportion to size. The other half of the Fund's assets are used to
overweight positions in those stocks the Fund's manager believes offer greater
return potential. The manager may sell stocks from the actively managed half of
the portfolio when they no longer offer attractive growth prospects.
The DOW 30 VALUE FUND invests in the 30 blue-chip companies that make up the
Dow Jones Industrial Average (DJIA). The Fund indexes half of its assets to the
DJIA. With the remaining assets, the Fund's managers add to positions in select
DJIA stocks based on certain price criteria. The managers may sell a holding
from the actively managed portion of the portfolio when it no longer fits the
selection criteria.
The INDEX 500 FUND invests all of its assets in an S&P 500 Index Master
Portfolio of the Master Investment Portfolio, another mutual fund that holds
each of the stocks that make up the Standard & Poor's 500. The Master
2
<PAGE>
Portfolio has the same investment goal as the Fund. This structure allows the
Fund to more closely mimic the S&P 500's performance, as well as to control
operating expenses.
Additional information about each Fund's investments is available in annual and
semiannual reports to shareholders. Each Fund's reports discuss the market
conditions and investment strategies that significantly affected performance
during the past fiscal year. You may obtain these reports at no cost by calling
1-800-368-3863.
WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUNDS?
GENERAL STOCK RISKS: The Funds' major risks are those of investing in the stock
market. That means the Funds may experience sudden, unpredictable declines in
the value of their shares, as well as periods of poor performance. Because
stock values fluctuate, when you sell your investment you may receive more or
less money than you originally invested.
CONCENTRATED PORTFOLIO: As a nondiversified Fund, the DOW 30 VALUE FUND may
take large positions in individual stocks. As a result, the shares of this Fund
are likely to fluctuate in value more than those of a fund investing in a
broader range of securities.
The Funds are appropriate for investors who have financial goals five years or
more in the future, and who are comfortable with the risks described here. The
Funds are not appropriate for investors concerned primarily with principal
stability.
Because the Funds have been in operation for less than a calendar year, they
have no annual returns history.
3
<PAGE>
WHAT ARE THE FUNDS' FEES AND EXPENSES?
This section describes the fees and expenses that you may pay if you buy and
hold shares of the Funds.
SHAREHOLDER FEES (fees paid directly from your investment)
The Funds are 100% no-load, so you pay no fees to buy or sell shares. Shares of
the DOW 30 VALUE FUND and the INDEX 500 FUND that are held for less than six
months are subject to a redemption fee of .50%. Redemption fees are paid
directly into Fund assets, not to the investment advisor, to help cover the
costs that short-term trading generates.
ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from fund assets)
The costs of operating each Fund are deducted from Fund assets, which means you
pay them indirectly. These costs are deducted before computing the daily share
price or making distributions. As a result, they don't appear on your account
statement, but instead reduce the amount of total return you receive.
ANNUAL FUND OPERATING EXPENSES (AS A PERCENT OF AVERAGE NET ASSETS)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
MANAGEMENT SHAREHOLDER OTHER
FUND FEES SERVICING FEES EXPENSES TOTAL EXPENSES
- -------------- ---------- --------------- ------------ --------------
Blue Chip 100 0.75% None 1.23% 1.98%*
- -------------- ---------- --------------- ------------ --------------
Dow 30 Value 0.80% None 1.11% 1.91%*
- -------------- ---------- --------------- ------------ --------------
Index 500 0.05% 0.25% 1.04% 1.34%*+
- -------------- ---------- --------------- ------------ --------------
</TABLE>
*Total operating expenses do not reflect the investment advisor's waiver of
management fees and/or absorptions. With such waivers and/or absorptions, the
total operating expenses of the Blue Chip 100 Fund were 0.98%, those of the Dow
30 Value Fund were 1.40%, and those of the Index 500 Fund were 0.45%. The
waivers and absorptions for the Blue Chip 100 and Dow 30 Value Funds may be
terminated at any time. The investment advisor has agreed to cap the total
operating expenses of the Index 500 Fund at 0.45% until January 1, 1999.
+The operating expenses for the Index 500 Fund include those of the S&P 500
Index Master Portfolio as well as those of the Fund.
4
<PAGE>
EXAMPLE: This example is intended to help you compare the cost of investing in
the Funds with the cost of investing in other mutual funds. The example assumes
that you invest $10,000 in the Funds for the time periods indicated, and then
redeem all of your shares at the end of those periods. The example also assumes
that your investment has a 5% return each year and that the Funds' operating
expenses remain the same. Although your actual costs may be higher or lower,
based on these assumptions your costs would be:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -------------- --------- --------- --------- ---------
Blue Chip 100 $201 $621 $1,068 $2,306
- -------------- --------- --------- --------- ---------
Dow 30 Value $194 $600 $1,032 $2,233
- -------------- --------- --------- --------- ---------
Index 500 $136 $425 $734 $1,613
- -------------- --------- --------- --------- ---------
</TABLE>
WHO ARE THE FUNDS' INVESTMENT ADVISORS AND PORTFOLIO MANAGERS?
Strong Capital Management serves as investment advisor to the BLUE CHIP 100
FUND and the DOW 30 VALUE FUND. Horizon Investment Services is subadvisor to
the DOW 30 VALUE FUND. Barclays Global Fund Advisors serves as investment
advisor to the S&P 500 Index Master Portfolio, in which the INDEX 500 FUND
invests substantially all its assets. As a pure index investment, the Master
Portfolio does not have a portfolio manager.
Karen E. McGrath manages the BLUE CHIP 100 FUND. She joined Strong in October
1995, and has more than 25 years of investment experience. From 1990 until
joining Strong, she served as a portfolio manager at National Investment
Services and its predecessor organization, National Investment Services of
America. She has managed the Fund since its inception on June 30, 1997.
Charles B. Carlson co-manages the DOW 30 VALUE FUND. He is vice president of
the Fund's Subadvisor, contributing editor of the DOW THEORY FORECASTS
newsletter, and managing editor of the NO-LOAD STOCK INSIDER and DRIP INVESTOR
newsletters. Prior to June 1995, he worked solely at DOW THEORY FORECASTS as
editor. Co-manager Richard J. Moroney is vice president of the Fund's
Subadvisor and editor of DOW THEORY FORECASTS, a post he has held since July
1995. For four years prior to that, he served as the publication's managing
editor. The two have no previous experience managing a mutual fund, but have
managed a portion of a corporate equity account for the subadvisor.
5
<PAGE>
HOW CAN I BUY FUND SHARES?
There are several ways you can open a new account in the Funds.
- - BY MAIL: Complete and sign the application. Make your check or money order
payable to Strong Funds. Mail it to Strong Funds, P.O. Box 2936, Milwaukee,
WI 53201.
- - BY PHONE OR BY INTERNET: If you are a current Strong Funds shareholder and
choose exchange privileges, you can exchange shares from one Strong account
to open another.
You can also open an account in person or through a broker-dealer.
The minimum initial investment is $2,500 for a regular account, $500 for an
Education IRA, and $250 for an IRA or transfer or gift to minor account. If you
establish an Automatic Investment Plan (not available for Education IRAs) of
$50 or more per month, these minimums are waived. In all cases, the minimum for
subsequent investments is $50. (For minimums on other retirement plans, call
1-800-368-2882.)
HOW CAN I SELL FUND SHARES?
There are several ways you can sell (redeem) your Fund shares.
- - BY MAIL: You can write a letter of instruction, including your account
number, the dollar amount or number of shares you wish to redeem, each
owner's name, your street address, and the signature of each owner. Mail it
to Strong Funds, P.O. Box 2936, Milwaukee, WI 53201.
- - BY PHONE OR BY INTERNET: If you choose redemption privileges, you can sell
shares by phone or through our web site.
You can also redeem shares in person, through a systematic withdrawal plan, or
through a broker-dealer.
DO THE FUNDS PAY OUT DIVIDENDS OR CAPITAL GAINS? HOW ARE THEY TAXED?
The Funds may earn income from dividends on the stocks in the portfolios, and
may realize capital gains from appreciation on their holdings. The BLUE CHIP
100 FUND intends to declare income quarterly, and capital gains annually. The
6
<PAGE>
DOW 30 VALUE and INDEX 500 FUNDS intend to declare income and capital gains
annually. Unless you elect otherwise, all distributions of income and capital
gains will be automatically reinvested in the Fund that paid them. These
distributions are taxable regardless of whether you reinvest them or take them
in cash.
Income is taxable at ordinary federal income tax rates. Capital-gains
distributions are taxed at rates based on how long the assets were held by the
Fund. After the end of each calendar year, Strong sends shareholders a
statement of the Funds' income and capital-gains distributions to assist in tax
preparation.
WHAT SERVICES DOES STRONG FUNDS PROVIDE?
Strong offers you a variety of ways to get information, monitor your
investments, and buy and sell shares.
- - Personal service 24 hours a day, 7 days a week
- - Automated telephone service
- - Online transaction services
- - Automatic investment plans
- - Payroll direct deposit
- - Automatic exchange services
- - Systematic withdrawal plans
- - Retirement plans for individuals and corporations
- - Fund recommendation service
Strong representatives can tell you more about each of these services, and can
also give you further information about buying and selling shares. Just call
1-800-368-3863 anytime, day or night.
DOW JONES, DOW JONES INDUSTRIAL AVERAGESM, AND DJIASM ARE SERVICE MARKS OF DOW
JONES & COMPANY, INC. AND HAVE BEEN LICENSED FOR USE FOR CERTAIN PURPOSES BY
THE STRONG DOW 30 VALUE FUND. THE STRONG DOW 30 VALUE FUND IS NOT SPONSORED,
ENDORSED, SOLD, OR PROMOTED BY DOW JONES, AND DOW JONES MAKES NO REPRESENTATION
REGARDING THE ADVISABILITY OF INVESTING IN THE FUND.
S&P DOES NOT SPONSOR THE STRONG INDEX 500 FUND OR THE S&P 500 INDEX MASTER
PORTFOLIO, NOR IS IT AFFILIATED IN ANY WAY WITH BARCLAYS GLOBAL FUND ADVISORS,
THE S&P 500 INDEX MASTER PORTFOLIO'S INVESTMENT ADVISOR, THE S&P 500 INDEX
MASTER PORTFOLIO, OR THE FUND. STANDARD & POOR'S(R), S&P(R), S&P 500(R), AND
STANDARD & POOR'S 500 ARE TRADEMARKS OF THE MCGRAW-HILL COMPANIES, INC. AND
HAVE BEEN LICENSED FOR USE BY THE FUND. THE FUND AND THE S&P 500 INDEX MASTER
PORTFOLIO ARE NOT SPONSORED, ENDORSED, SOLD, OR PROMOTED BY S&P AND S&P MAKES
NO REPRESENTATION REGARDING THE ADVISABILITY OF INVESTING IN THE FUND AND THE
S&P 500 INDEX MASTER PORTFOLIO.
7
<PAGE>
[PICTURE OF TELEPHONE]
To order a free prospectus kit,
call 1-800-368-1030
To learn more about our funds,
discuss an existing account,
or conduct a transaction,
call 1-800-368-3863
- ------------------------------
If you are a
Financial Professional,
call 1-800-368-1683
[PICTURE OF STRONG WEB SITE ON COMPUTER]
Strong On-line
www.strong-funds.com
[STRONG LOGO]
STRONG FUNDS
P.O. Box 2936, Milwaukee, Wisconsin 53201
Strong Funds Distributors, Inc. 7861E98 IX798P
8
<PAGE>
