<PAGE>
[LOGO OF STRONG]
[PHOTO]
Semi-annual report
The Strong
DOW 30 VALUE
Fund
Semi-Annual Report. June 30, 2000
<PAGE>
Letter from the Chairman
Dear Strong Investor,
The United States' economic miracle continues to set records for longevity.
Today, we enjoy a near-perfect economy. How in the world did we get here?
In the days of our grandparents and great-grandparents, the railroad helped
drive the Industrial Revolution. Nearly every aspect of the Industrial
Revolution directly impacted and improved people's lives. Today, the
technological revolution is similarly impacting our lives. We feel its presence
every time we dial a cell phone, pull out a PalmPilot, boot up a computer, and
punch "play" on the CD player in the dashboard of our computer-programmed
cars. Technology is our constant companion.
Aside from those tangible ways in which we employ technology each and every day,
ongoing technological developments affect us in another, less obvious way. The
technology revolution is enhancing worker productivity, enabling the economy to
grow faster than ever before without the drag of inflation. This allows real
wages to rise faster than in previous periods of expansion, raising nearly
everyone's standard of living.
The phenomenal economic growth and wealth creation that we have experienced has
powered the financial markets to ever-higher levels in recent years. As long as
this favorable economic environment prevails--and assuming that there isn't a
negative policy change or an economic "accident" to derail it--our economy
should continue to expand. Hopefully, the financial markets will continue to
reflect that.
Despite the good times, we should never forget that the financial markets are in
control and that they are a discounting mechanism, continually peering into the
future. In fact, many experienced investors believe that certain sectors of the
financial markets are currently priced to perfection and any little hiccup could
cause a significant correction.
The U.S. Federal Reserve Board has increased interest rates six times during the
last 18 months in an attempt to slow the economy. Many central banks around the
world have been making a concerted effort to slow their economies. If one or
more of these economies should slow, it may be reflected in the tone of our
economy and financial markets as well. If that happens, 2000 could be the first
time in many years that investors earn a negative return on their stock
investments. It will be a new--and unpleasant--experience for investors who know
only the unbridled bull markets of the 1990s.
Financial markets are cyclical. A market correction, though painful, is as
natural as breathing. Financial volatility can significantly derail an
investment program, especially if that program is not carefully planned. At
Strong, we pride ourselves on helping our investors invest wisely and with
purpose. We advise you to establish a clear set of goals, a plan to reach them,
and a program of constant monitoring to make certain you are heading in the
right direction.
/s/ Dick
<PAGE>
The Strong Dow 30 Value Fund
______________________
S E M I - A N N U A L R E P O R T . J U N E 3 0 , 2 0 0 0
Table of Contents
<TABLE>
<S> <C>
Investment Review
The Strong Dow 30 Value Fund .................................... 2
Financial Information
Schedule of Investments in Securities ........................... 4
Statement of Assets and Liabilities ............................. 5
Statement of Operations ......................................... 6
Statements of Changes in Net Assets ............................. 7
Notes to Financial Statements ................................... 8
Financial Highlights .............................................. 10
</TABLE>
<PAGE>
THE STRONG DOW 30 VALUE FUND
Fund highlights
. For the six months ended June 30, 2000, the Strong Dow 30 Value Fund
returned -6.12%. This compares favorably with the -9.03% return of the
Fund's benchmark, the Dow Jones Industrial Average(SM)./1/, /2/, *
. Helping the Fund's performance was its focus on companies with solid
revenue and earnings growth. This focus led the Fund to maintain
overweightings in such first-half winners as Intel (up more than 62%),
Merck (up 14%), Hewlett-Packard (up nearly 41%), and Johnson & Johnson (up
more than 9%).
. Overall, only 10 of the 30 Dow(SM) components posted a gain in the first
half of 2000. Of those 10 stocks, the Fund had significant overweightings
in seven.
------------------------------
AVERAGE ANNUAL TOTAL RETURNS/1/
As of 6-30-00
1-year -2.62%
Since Inception 13.13%
(on 12-31-97)
Equity funds are volatile investments and should only be considered for
long-term goals.
------------------------------
FIVE LARGEST STOCK HOLDINGS
As of 6-30-00
Security % of Net Assets
Intel Corporation 8.3%
Hewlett-Packard Company 7.9%
Johnson & Johnson 6.7%
Microsoft Corporation 6.2%
Merck & Company, Inc. 5.4%
Please see the Schedule of Investments in Securities for a complete listing
of the Fund's portfolio.
Perspectives from the Managers
/s/ Charles B. Carlson /s/ Richard T. Moroney
Charles B. Carlson Richard T. Moroney
Portfolio Co-manager Portfolio Co-manager
--------------------------------------------------------------------------------
The Fund's performance for the first half of 2000 was clearly a case of "good
news/bad news." The good news was that the Fund outperformed its benchmark, the
Dow Jones Industrial Average(SM), by more than two full percentage points. The
bad news was that the solid performance relative to the benchmark still left the
Fund with a loss for the first six months. Unfortunately, the strong performance
of the actively managed portion of the Fund could not completely overcome the
weak performance of the indexed portion.
It was especially gratifying to see our strategy of focusing on high-quality,
reasonably priced Dow(SM) stocks -- those with earnings and especially revenue
momentum -- pay off in our performance relative to the benchmark. This
investment approach led us not only to maintain significant overweightings in
seven of the 10 best-performing Dow(SM) stocks, but it also allowed us to limit
our exposure to some of the biggest Dow(SM) losers over the period, such as
Procter & Gamble (down 48%), International Paper (down 47%), and DuPont (down
33%).
Looking ahead, we expect The Dow(SM) to give a much better account of itself in
the second half of 2000. The Federal Reserve seems unlikely to raise interest
rates aggressively in the next six months, which is good news for rate-sensitive
--------------------------------------------------------------------------------
It was especially
gratifying to see our
strategy of focusing
on high-quality,
reasonably priced Dow(SM)
stocks...pay off in our
performance relative
to the benchmark.
--------------------------------------------------------------------------------
* Dow Jones(SM), Dow Jones Industrial Average(SM), Dow 30(SM), The Dow(SM),
and DJIA(SM) 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.
/1/ Average annual total return and total return measure change in the value of
an investment in the Fund, assuming reinvestment of all dividends and
capital gains. Average annual total return reflects annualized change while
total return reflects aggregate change, and is not annualized.
2
<PAGE>
Dow(SM) stocks. Furthermore, several washed-out industrial Dow(SM) stocks are
trading at historically cheap valuations. For those companies that have sales
momentum, we see the recent stock weakness as an opportunity to add to our
positions.
An improved climate for the technology sector in the second half of the year
would also be good news for the Fund, as technology stocks make up approximately
25% of The Dow(SM) and are overweighted in the Fund. Given the Fund's healthy
exposure to Dow(SM) technology stocks as well as overweightings in industrial
and cyclical stocks with revenue and earnings momentum, we believe the Fund is
well-positioned to capitalize on the anticipated rebound in The Dow(SM).
We appreciate your confidence in the Fund and thank you for your investment. We
will continue to do our best to reward that confidence.
GROWTH OF AN ASSUMED $10,000 INVESTMENT
From 12-31-97 to 6-30-00
[GRAPH]
<TABLE>
<CAPTION>
The Strong Dow Jones Industrial Lipper Large-Cap
Dow 30 Value Fund (N) Average(SM) (DJIA)/2/ Value Funds Index/2/
<S> <C> <C> <C>
Dec 97 $10,000 $10,000 $10,000
Apr 98 $11,497 $11,511 $11,260
Aug 98 $ 9,642 $ 9,644 $ 9,568
Dec 98 $11,611 $11,812 $11,824
Apr 99 $13,723 $13,943 $12,815
Aug 99 $13,723 $14,083 $12,545
Dec 99 $14,498 $15,023 $13,098
Apr 00 $13,846 $14,072 $12,971
Jun 00 $13,611 $13,666 $12,838
</TABLE>
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 Dow
Jones Industrial Average(SM) (DJIA) and the Lipper Large-Cap Value Funds Index.
Results include the reinvestment of 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 Dow 30 Value Fund seeks capital growth. It invests in the 30 blue-
chip companies that make up the Dow Jones Industrial Average(SM) (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 several value
criteria and a proprietary rating system. This rating system takes into account
such valuation measures as dividend yield, price-earnings (P/E) ratio, cash
flow, discounted cash flows, value of discounted dividends, P/E ratio to growth
rate, earnings momentum, and earnings revisions.
--------------------------------------------------------------------------------
Market
highlights
. The Fed continued its aggressive stance against inflation during the six
months, which fueled higher interest rates. Because of the many industrial
and financial stocks in The Dow(SM), higher rates crimped The Dow(SM)'s
performance significantly relative to other indexes.
. Rising oil prices affected profit margins for many Dow(SM) industrial firms
(such as DuPont) and consumer nondurables manufacturers (such as Procter &
Gamble).
. Because several of The Dow(SM) component companies generate 40% or more of
their total sales overseas, the weakness in foreign currencies, especially
the Euro, hurt profits for many of the firms comprising the index.
--------------------------------------------------------------------------------
/2/ The DJIA is an unmanaged index generally representative of the U.S. stock
market. The Lipper Large-Cap Value Funds Index is an equally weighted
performance index of the largest qualifying funds in this Lipper category.
Source of the DJIA index data is Standard & Poor's Micropal. Source of the
Lipper index data is Lipper Inc.
3
<PAGE>
SCHEDULE OF INVESTMENTS IN SECURITIES June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
STRONG DOW 30 VALUE FUND
<TABLE>
<CAPTION>
Shares or
Principal Value
Amount (Note 2)
-------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks 98.1%
Aerospace - Defense 3.7%
The Boeing Company 131,200 $ 5,485,800
Aerospace - Defense Equipment 2.7%
United Technologies Corporation 67,800 3,991,725
Auto Manufacturers - Domestic 4.5%
General Motors Corporation 114,700 6,659,769
Banks - Money Center 9.9%
Citigroup, Inc. 117,250 7,064,312
J.P. Morgan & Company, Inc. 69,400 7,642,675
------------
14,706,987
Beverages - Soft Drinks 1.5%
The Coca-Cola Company 39,800 2,286,012
Computer - Manufacturers 13.0%
Hewlett-Packard Company 93,500 11,675,812
International Business Machines Corporation 69,000 7,559,813
------------
19,235,625
Computer Software - Desktop 6.2%
Microsoft Corporation (b) 114,200 9,136,000
Diversified Operations 6.0%
E.I. Du Pont de Nemours & Company 40,000 1,750,000
Honeywell International, Inc. 63,800 2,149,262
Minnesota Mining & Manufacturing Company 60,900 5,024,250
------------
8,923,512
Electrical - Equipment 2.6%
General Electric Company 73,400 3,890,200
Electronics - Semiconductor Manufacturing 8.3%
Intel Corporation 91,800 12,272,512
Financial Services - Miscellaneous 2.0%
American Express Company 56,500 2,945,063
Leisure - Photo Equipment/Related 2.7%
Eastman Kodak Company 67,300 4,004,350
Leisure - Services 1.3%
The Walt Disney Company 47,900 1,859,119
Machinery - Construction/Mining 1.1%
Caterpillar, Inc. 46,600 1,578,575
Medical - Drug/Diversified 6.7%
Johnson & Johnson 97,700 9,953,188
Medical - Ethical Drugs 5.4%
Merck & Company, Inc. 103,400 7,923,025
Metal Ores - Non Ferrous 2.5%
Alcoa, Inc. 124,900 3,622,100
Oil & Gas - International Integrated 2.1%
Exxon Mobil Corporation 39,800 3,124,300
Paper & Paper Products 0.9%
International Paper Company 45,200 1,347,525
Retail - Major Discount Chains 2.8%
Wal-Mart Stores, Inc. 71,200 4,102,900
Retail - Restaurants 0.9%
McDonald's Corporation 40,300 1,327,381
Retail/Wholesale - Building Products 2.0%
The Home Depot, Inc. 58,450 2,918,847
Soap & Cleaning Preparations 1.5%
The Procter & Gamble Company 39,800 2,278,550
Telecommunications - Services 1.7%
AT&T Corporation 80,700 2,552,138
Tobacco 2.8%
Philip Morris Companies, Inc. 157,100 4,172,969
Utility - Telephone 3.3%
SBC Communications, Inc. 112,900 4,882,925
------------------------------------------------------------------------------
Total Common Stocks ($136,697,653) 145,181,097
------------------------------------------------------------------------------
Short-Term Investments (a) 1.4%
Commercial Paper
Interest Bearing, Due Upon Demand
Sara Lee Corporation, 6.27% $1,347,800 1,347,800
Wisconsin Electric Power Company, 6.31% 716,100 716,100
------------------------------------------------------------------------------
Total Short-Term Investments (Cost $2,063,900) 2,063,900
------------------------------------------------------------------------------
Total Investments in Securities (Cost $138,761,553) 99.5% 147,244,997
Other Assets and Liabilities, Net 0.5% 815,592
------------------------------------------------------------------------------
Total Net Assets 100.0% $148,060,589
==============================================================================
</TABLE>
LEGEND
--------------------------------------------------------------------------------
(a) Short-term investments include any security which has a maturity of less
than one year.
(b) Non-income producing security.
Percentages are stated as a percent of net assets.
4 See Notes to Financial Statements.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Strong Dow 30
Value Fund
-------------
<S> <C>
Assets:
Investments in Securities, at Value (Cost of $138,761,553) $147,244,997
Receivable for Securities Sold 599,832
Receivable for Fund Shares Sold 153,464
Dividends and Interest Receivable 251,382
Other Assets 16,759
------------
Total Assets 148,266,434
Liabilities:
Payable for Securities Purchased 138,757
Payable for Fund Shares Redeemed 15,997
Accrued Operating Expenses and Other Liabilities 51,091
------------
Total Liabilities 205,845
------------
Net Assets $148,060,589
============
Net Assets Consist of:
Capital Stock (par value and paid-in capital) $143,692,611
Undistributed Net Investment Income 262,125
Accumulated Net Realized Loss (4,377,591)
Net Unrealized Appreciation 8,483,444
------------
Net Assets $148,060,589
============
Capital Shares Outstanding (Unlimited Number Authorized) 11,090,893
Net Asset Value Per Share $13.35
======
</TABLE>
See Notes to Financial Statements. 5
<PAGE>
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
For the Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Strong Dow 30
Value Fund
-------------
<S> <C>
Income:
Dividends $ 973,375
Interest 45,007
-----------
Total Income 1,018,382
Expenses:
Investment Advisory Fees 524,735
Custodian Fees 24,829
Shareholder Servicing Costs 125,277
Reports to Shareholders 42,579
Other 38,836
-----------
Total Expenses 756,256
-----------
Net Investment Income 262,126
Realized and Unrealized Loss:
Net Realized Loss on Investments (1,708,801)
Net Change in Unrealized Appreciation/Depreciation on Investments (7,196,719)
-----------
Net Loss on Investments (8,905,520)
-----------
Net Decrease in Net Assets Resulting from Operations ($8,643,394)
===========
</TABLE>
6 See Notes to Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Strong Dow 30 Value Fund
-----------------------------------
Six Months Ended Year Ended
June 30, 2000 Dec. 31, 1999
---------------- -------------
(Unaudited)
<S> <C> <C>
Operations:
Net Investment Income $ 262,126 $ 419,139
Net Realized Loss (1,708,801) (1,913,272)
Net Change in Unrealized Appreciation/Depreciation (7,196,719) 13,283,450
------------ ------------
Net Increase (Decrease) in Net Assets Resulting from Operations (8,643,394) 11,789,317
Distributions From Net Investment Income -- (421,108)
Capital Share Transactions:
Proceeds from Shares Sold 107,499,154 125,783,891
Proceeds from Reinvestment of Distributions -- 391,152
Payment for Shares Redeemed (64,771,033) (51,814,938)
------------ ------------
Net Increase in Net Assets from Capital Share Transactions 42,728,121 74,360,105
------------ ------------
Total Increase in Net Assets 34,084,727 85,728,314
Net Assets:
Beginning of Period 113,975,862 28,247,548
------------ ------------
End of Period $148,060,589 $113,975,862
============ ============
Transactions in Shares of the Fund:
Sold 7,938,086 9,423,493
Issued in Reinvestment of Distributions -- 27,546
Redeemed (4,864,017) (3,905,128)
------------ ------------
Net Increase in Shares of the Fund 3,074,069 5,545,911
============ ============
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
June 30, 2000 (Unaudited)
1. Organization
Strong Dow 30 Value Fund is a non-diversified series of Strong Equity
Funds, Inc., an open-end management investment company registered under the
Investment Company Act of 1940, as amended.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements.
(A) Security Valuation -- Securities of the Fund are valued at fair value
through valuations obtained by a commercial pricing service or the
mean of the bid and asked prices when no last sales price is
available. Securities for which market quotations are not readily
available 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 Fund 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 Fund generally
bears the costs, if any, associated with the disposition of restricted
securities. The Fund held no restricted securities at June 30, 2000.
(B) Federal Income and Excise Taxes and Distributions to Shareholders --
The Fund intends to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders
in a manner which results in no tax cost to the Fund. Therefore, no
federal income or excise tax provision is required.
Net investment income or net realized gains for financial statement
purposes 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.
The Fund generally pays dividends from net investment income and
distributes any net capital gains that it realizes annually.
(C) Realized Gains and Losses on Investment Transactions -- Investment
security transactions are recorded as of the trade date. 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 Fund 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 Fund intends 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.
(E) Futures -- Upon entering into a futures contract, the Fund pledges to
the broker cash or other investments equal to the minimum "initial
margin" requirements of the exchange. Additional securities held by
the Fund may be designated as collateral on open futures contracts.
The Fund also receives from or pays 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 -- The Fund may write put or call options (none were written
during the period). Premiums received by the Fund 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. Changes between the initial premiums received and the current
market value of the options are recorded as unrealized gains or
losses. When an option expires, is exercised, or is closed, the Fund
realizes a gain or loss, and the liability is eliminated. The Fund
continues 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. Securities held by the Fund may be designated
as collateral on written options.
(G) Repurchase Agreements -- The Fund may enter into repurchase agreements
with institutions that the Fund's investment advisor, Strong Capital
Management, Inc. ("the Advisor"), has determined are creditworthy
pursuant to criteria adopted by the Board of Directors. Each
repurchase agreement is recorded at cost. The Fund requires that the
8
<PAGE>
collateral, represented by securities (primarily U.S. Government
securities), in a repurchase transaction be maintained in a segregated
account with a custodian bank in a manner sufficient to enable the
Fund to obtain those securities in the event of a default of the
repurchase agreement. On a daily basis, the Advisor monitors the value
of the collateral, including accrued interest, to ensure it is at
least equal to the amount owed to the Fund under each repurchase
agreement.
(H) 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.
(I) Other -- 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 premium and discounts.
3. Related Party Transactions
The Advisor, with whom certain officers and directors of the Fund are
affiliated, provides investment advisory services and shareholder
recordkeeping and related services to the Fund. Investment advisory fees,
which are established by terms of the Advisory Agreement, are based on an
annualized rate of 0.80% of the average daily net assets of the Fund. Based
on the terms of the Advisory Agreement, advisory fees and other expenses
will be waived or absorbed 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 or absorb certain expenses at its
discretion. Shareholder recordkeeping and related service fees are based on
contractually established rates for each open and closed shareholder
account. The Advisor also allocates to the Fund certain charges or credits
resulting from transfer agency banking activities based on the Fund's level
of subscription and redemption activity. Charges allocated to the Fund by
the Advisor are included in Other Expenses in the Fund's Statement of
Operations. Credits allocated by the Advisor serve to reduce the
shareholder servicing expenses incurred by the Funds and are reported as
Fees Paid Indirectly by Advisor in the Fund's Statement of Operations. The
Advisor is also compensated for certain other services related to costs
incurred for reports to shareholders.
Horizon Investment Services, LLC ("Horizon") manages the investments of
Strong Dow 30 Value Fund under an agreement with the Advisor. Horizon is
compensated by the Advisor (not the Fund) and bears all of its own expenses
in providing subadvisory services.
The Fund may invest cash 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 the Fund are reduced by an
amount equal to advisory fees paid to the Advisor under its investment
advisory agreement with the money market funds.
The amount payable to the Advisor at June 30, 2000, shareholder servicing
and other expenses paid to the Advisor, transfer agency banking charges and
unaffiliated directors' fees for the six months then ended, were $41,431,
$125,932, $992 and $2,244, respectively.
4. Line of Credit
The Strong 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 LOC. For an individual Fund, borrowings under the LOC are limited
to either the lesser of 15% of the market value of the Fund's total assets
or any explicit borrowing limits in the Fund's prospectus. Principal and
interest on each borrowing under the LOC are due not more than 60 days
after the date of the borrowing. Borrowings under the LOC bear interest
based on prevailing market rates as defined in the LOC. A commitment fee of
0.08% per annum is incurred on the unused portion of the LOC and is
allocated to all participating Strong Funds. At June 30, 2000, there were
no borrowings by the Fund outstanding under the LOC.
5. Investment Transactions
The aggregate purchases and sales of long-term securities, other than
government securities, for the six months ended June 30, 2000 were
$91,608,909 and $51,073,699, respectively. There were no purchases or sales
of long-term government securities during the six months ended June 30,
2000.
6. Income Tax Information
At June 30, 2000, the cost of investments in securities for federal income
tax purposes was $143,513,980. Net unrealized appreciation of securities
was $3,731,017, consisting of gross unrealized appreciation and
depreciation of $14,508,599 and $10,777,582, respectively. At December 31,
1999, the Fund had a capital loss carryover of $681,075 which expires in
varying amounts through 2007.
9
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
STRONG DOW 30 VALUE FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Period Ended
------------------------------------
June 30, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2000/(b)/ 1999 1998
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $14.22 $11.43 $10.00
Income From Investment Operations:
Net Investment Income 0.02 0.05 0.18
Net Realized and Unrealized Gains (Losses) on Investments (0.89) 2.79 1.43
-------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (0.87) 2.84 1.61
Less Distributions:
From Net Investment Income -- (0.05) (0.18)
-------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (0.05) (0.18)
-------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $13.35 $14.22 $11.43
=========================================================================================================================
Ratios and Supplemental Data
-------------------------------------------------------------------------------------------------------------------------
Total Return -6.1% +24.9% +16.1%
Net Assets, End of Period (In Thousands) $148,061 $113,976 $28,248
Ratio of Expenses to Average Net Assets Without Waivers and Absorptions 1.2%* 1.1% 2.0%
Ratio of Expenses to Average Net Assets 1.2%* 1.1% 0.1%
Ratio of Net Investment Income to Average Net Assets 0.4%* 0.6% 2.1%
Portfolio Turnover Rate 39.7% 64.8% 45.7%
</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 six months ended June 30, 2000 (unaudited).
10 See Notes to Financial Statements
<PAGE>
NOTES
--------------------------------------------------------------------------------
11
<PAGE>
NOTES
--------------------------------------------------------------------------------
12
<PAGE>
Directors
Richard S. Strong
Willie D. Davis
Stanley Kritzik
Neal Malicky
Marvin E. Nevins
William F. Vogt
Officers
Richard S. Strong, Chairman of the Board
Stephen J. Shenkenberg, Vice President and Secretary
Elizabeth N. Cohernour, Vice President
Cathleen A. Ebacher, Vice President
Dennis A. Wallestad, Vice President
Thomas M. Zoeller, Vice President
John W. Widmer, Treasurer
Rhonda K. Haight, Assistant Treasurer
Investment Advisor
Strong Capital Management, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
Distributor
Strong Investments, Inc.
P.O. Box 2936, Milwaukee, Wisconsin 53201
Custodian
Firstar Bank, N.A.
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
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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. To reduce the volume of mail you
receive, only one copy of financial reports, prospectuses,
and other regulatory materials is mailed to your household.
You can call us at 1-800-368-1030, or write to us at the
address listed below, to request (1) additional copies free
of charge, or (2) that we discontinue our practice of
householding regulatory materials. Strong Investments, Inc.
RT5368-0700
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
Visit our web site at
www.eStrong.com
[LOGO OF STRONG]
STRONG INVESTMENTS
P.O. Box 2936
Milwaukee, Wisconsin 53201
