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Please file this prospectus supplement with your records.
STRONG INTERNATIONAL INCOME FUNDS
STRONG SHORT-TERM GLOBAL BOND FUND, INC.
STRONG INTERNATIONAL BOND FUND, INC.
Prospectus Supplement Dated February 17, 1995, to Prospectus Dated
March 31, 1994.
ANNUAL MEETING OF SHAREHOLDERS. The Board of Directors of the Funds has
approved submitting for shareholder vote the following items at an Annual
Meeting of Shareholders to be held on April 13, 1995, or any adjournment
thereof: (i) the election of an expanded Board of Directors for each Fund; (ii)
adoption and ratification of each Fund's revised advisory agreement with Strong
Capital Management, Inc. (SCM); (iii) the ratification of independent public
accountants for each Fund; (iv) adoption of each Fund's revised Articles of
Incorporation; and (v) the approval of a revised investment objective for each
Fund.
The Board of Directors of the Funds also has proposed for shareholder approval
certain changes to each Fund's investment limitations that are designed (i) to
simplify and modernize the Funds' fundamental investment limitations, (ii) to
replace certain fundamental investment limitations with non-fundamental
operating policies, and (iii) to eliminate certain limitations. These changes,
if adopted, are intended to conform each Fund's policies to those expected to
become standard for all Funds managed by SCM and, in certain cases, are
designed to increase each Fund's flexibility to make investments.
The Short-Term Global Bond Fund's proposed investment objective is "to seek
total return by investing for a high level of income with a low degree of share-
price fluctuation." The Short-Term Global Bond Fund will continue to invest
primarily in investment-grade bonds of U.S. and foreign issuers with an average
portfolio maturity of three years or less. The International Bond Fund's
proposed investment objective is "to seek high total return by investing for
both income and capital appreciation." The International Bond Fund will
continue to primarily invest in investment-grade bonds of foreign issuers.
The amended investment objectives are designed to describe each Fund's goal
more clearly and are not intended to change the manner in which the Funds are
managed.
A copy of each Fund's Proxy Statement dated February 16, 1995, will be provided
without charge by calling 1-800-368-3863 and is incorporated herein by
reference. This information supplements the section entitled "Investment
Objectives and Policies" contained on pages 5 through 9 of the Prospectus.
INVESTMENT GRADE FIXED INCOME SECURITIES. Effective June 15, 1994, each Fund
will, under normal market conditions, invest at least 65% of its total assets
in securities that, at the time of investment, are rated in one of the four
highest categories by a nationally recognized statistical rating organization
or "NRSRO" (e.g., BBB or higher by Standard & Poor's Ratings Group or "S&P"), or
if unrated, are determined by SCM to be of comparable quality ("investment-
grade fixed income securities"). Previously, each Fund, under normal market
conditions, invested at least 80% of its total assets in investment grade fixed
income securities. This information supersedes, to the extent appropriate, the
information relating to investment grade fixed income securities contained under
the headings "Investment Objectives and Policies - Comparing the Funds" on page
6 of the Prospectus and "Investment Objectives and Policies - In General" on
page 7 of the Prospectus.
LOWER RATED SECURITIES. Effective June 15, 1994, each Fund may invest up to
but not including 35% of its total assets in securities that, at the time of
investment, are rated below investment grade but no lower than C by Moody's
Investors Service, Inc. or S&P, are comparably rated by another NRSRO, or if
unrated, are determined by SCM to be of comparable quality ("lower rated
securities"). Previously, each Fund was limited to investing up to 20% of its
total assets in lower rated securities. This information supersedes, to the
extent appropriate, the information regarding lower rated securities contained
under the headings "Investment Objectives and Policies - In General" on page 6
of the Prospectus and "Implementation of Policies and Risk Considerations -
Lower Rated Securities" on page 11 of the Prospectus.
DEVELOPING COUNTRIES. Effective June 15, 1994, each Fund may invest in any
country of the world subject only to the Fund's credit-quality and other
limitations. Previously, each Fund was limited to investing up to 20% of its
total assets in securities of issuers located in or denominated in the
currencies of developing countries. Accordingly, each Fund may now invest in
excess of 20% of its total assets in such securities. This information
supersedes the information regarding investing in developing countries under
the headings "Investment Objectives and Policies - Comparing the Funds" on page
6 of the Prospectus, "Investment Objectives and Policies - In General" on page
8 of the Prospectus, and "Implementation of Policies and Risk Considerations -
Foreign Securities and Currencies" on page 10 of the Prospectus.
over, please
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WHEN-ISSUED SECURITIES. Effective immediately, the Funds may invest without
limitation in when-issued or delayed delivery securities ("when-issued
securities"). Previously, the Funds could invest up to 25% of their total
assets in when-issued securities. For more information concerning when-issued
securities, please refer to the section entitled "When-Issued Securities" on
page 17 of the Prospectus. This information supplements the referenced
section.
DIRECTORS AND OFFICERS OF THE FUNDS. Mr. John Dragisic began serving as Vice
Chairman of the Funds upon his resignation from the Funds' Board of Directors.
Mr. Dragisic has also assumed day-to-day responsibilities of the office of
President, which is currently vacant, until such time as a President is
appointed by the Board of Directors of the Funds. The Board of Directors
appointed Mr. Willie D. Davis as a Director, Mr. Thomas P. Lemke as a Vice
President, and Ms. Ann E. Oglanian as Secretary of the Funds. This information
supersedes the information relating to the Directors and Officers of the Funds
contained on page 36 of the Prospectus.
FINANCIAL HIGHLIGHTS (FOR EACH SHARE OF THE FUNDS OUTSTANDING THROUGHOUT EACH
PERIOD). The following Financial Highlights are based upon an unaudited period
from March 31, 1994, (inception) to June 30, 1994.
<TABLE>
<CAPTION>
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March 31, 1994, (inception) to June 30, 1994
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<S> <C> <C>
SHORT-TERM GLOBAL INTERNATIONAL
NET ASSET VALUE, BEGINNING OF PERIOD $10.00 $10.00
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------
Net Investment Income 0.08 0.07
Net Realized and Unrealized Gains on Investments 0.10 0.49
------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.18 0.56
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LESS DISTRIBUTIONS
- ------------------
Dividends From Net Investment Income - -
Distributions From Net Realized Gains - -
TOTAL DISTRIBUTIONS ------ ------
- -
NET ASSET VALUE, END OF PERIOD $10.18 $10.56
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Total Return(1) +1.8% +5.6%
Net Assets, End of Period (In Thousands) $4,174 $6,116
Ratio of Expenses to Average Net Assets(2,3) 0.0% 0.0%
Ratio of Net Investment Income to Average Net Assets(2) 6.0% 6.1%
Portfolio Turnover Rate(2) 197.9% 908.2%
</TABLE>
(1) Total return is not annualized.
(2) Calculated on an annualized basis.
(3) Since the inception of the Short-Term Global and International Bond Funds,
SCM voluntarily waived its advisory fees and absorbed all other expenses.
Without these waivers and absorptions, the ratio of expenses to average net
assets would have been 1.5% and 1.6%, respectively, for the period. SCM will
continue to voluntarily waive its advisory fee and absorb each Fund's
expenses through June 30, 1995.
This information immediately follows the section entitled "Expenses" on
page 3 of the Prospectus.
