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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3793
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Strong Opportunity Fund, Inc.; on behalf of
Strong Advisor Select Fund, Strong Advisor U.S. Small/Mid
Cap Growth Fund, Strong Endeavor Fund and Strong Opportunity
Fund.
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(Exact name of registrant as specified in charter)
P.O. Box 2936 Milwaukee, WI 53201
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(Address of principal executive offices) (Zip code)
Richard Smirl, Strong Capital Management, Inc.
P.O. Box 2936 Milwaukee, WI 53201
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(Name and address of agent for service)
Registrant's telephone number, including area code: (414) 359-3400
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Date of fiscal year end: December 31
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Date of reporting period: June 30, 2003
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. (S) 3507.
Item 1. Reports to Stockholders
SEMIANNUAL REPORT | June 30, 2003
The Strong
Advisor Equity
Funds
[PHOTO APPEARS HERE]
Strong Advisor Common Stock Fund
Strong Advisor Mid Cap Growth Fund
Strong Advisor Small Cap Value Fund
Strong Advisor U.S. Value Fund
Strong Advisor Endeavor Large Cap Fund
Strong Advisor Focus Fund
Strong Advisor International Core Fund
Strong Advisor Select Fund
Strong Advisor Technology Fund
Strong Advisor U.S. Small/Mid Cap Growth Fund
Strong Advisor Utilities and Energy Fund
Strong Advisor Large Company Core Fund
[STRONG LOGO]
SEMIANNUAL REPORT | June 30, 2003
The Strong
Advisor Equity
Funds
Table of Contents
Investment Reviews
Strong Advisor Common Stock Fund ......................... 2
Strong Advisor Mid Cap Growth Fund ....................... 4
Strong Advisor Small Cap Value Fund ...................... 6
Strong Advisor U.S. Value Fund ........................... 8
Strong Advisor Endeavor Large Cap Fund ................... 10
Strong Advisor Focus Fund ................................ 12
Strong Advisor International Core Fund ................... 14
Strong Advisor Select Fund ............................... 16
Strong Advisor Technology Fund ........................... 18
Strong Advisor U.S. Small/Mid Cap Growth Fund ............ 20
Strong Advisor Utilities and Energy Fund ................. 22
Strong Advisor Large Company Core Fund ................... 24
Financial Information
Schedules of Investments in Securities
Strong Advisor Common Stock Fund .................... 26
Strong Advisor Mid Cap Growth Fund .................. 28
Strong Advisor Small Cap Value Fund ................. 30
Strong Advisor U.S. Value Fund ...................... 35
Strong Advisor Endeavor Large Cap Fund .............. 37
Strong Advisor Focus Fund ........................... 38
Strong Advisor International Core Fund .............. 39
Strong Advisor Select Fund .......................... 41
Strong Advisor Technology Fund ...................... 42
Strong Advisor U.S. Small/Mid Cap Growth Fund ....... 43
Strong Advisor Utilities and Energy Fund ............ 44
Strong Advisor Large Company Core Fund .............. 44
Statements of Assets and Liabilities ..................... 46
Statements of Operations ................................. 54
Statements of Changes in Net Assets ...................... 58
Notes to Financial Statements ............................ 63
Financial Highlights .......................................... 85
Directors and Officers ........................................106
A Few Words From Dick Strong
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[PHOTO APPEARS HERE]
Market Update--January 1 to June 30, 2003
In the early 1930s, politicians and policymakers in the United States and
elsewhere made a series of strategic errors that resulted in what historians
termed "an economic contraction." The rest of us call that period of horrible
human suffering and deprivation The Great Depression. When it finally ended,
those same politicians and economists vowed never to make the same mistakes
again.
In this country, seven decades later, the lessons of The Great Depression still
echo in our hearts and minds. Today, responding to weak economic growth and
fears of a possible severe slowdown, our government's economic policymakers have
employed almost every imaginable tool to spur economic growth. As the world's
biggest economy and the economic engine of the world, the U.S. has led the
way--but not alone. Other countries and regional economic authorities are
likewise moving to stimulate their economies.
The store of economic stimulants being brought to bear is unrivaled since World
War II. In the U.S. alone, we have witnessed massive government spending, with a
projected deficit larger than any in history. Monetary policy also has
contributed, pushing short-term interest rates to the lowest levels in more than
50 years. A weaker dollar aims to support manufacturing and export growth.
Changes in the tax laws on dividends and the evolving shift in corporate
compensation away from stock options to stock grants should meaningfully improve
corporate capital allocation.
History has demonstrated that it is dangerous to bet against the world's
governing bodies when they resolve to propel economic growth. Signs suggest that
we are in the beginning stages of a solid economic rebound. Early in such a
recovery phase, stocks and commodity prices usually rise, anticipating further
recovery. As additional signs of improvement emerge, consumer and business
confidence historically grows, and soon spending typically accelerates.
In the early stages of recovery, employment generally lags (usually 12-18
months) until employers gain confidence that such momentum will be sustained.
Because politicians are hypersensitive to employment numbers, they constantly
beat the drums of despair, when in reality hiring may be about to improve. And
so, it is not unusual to see more aggressive measures taken beyond the point
where a legitimate recovery is in place and employment is actually ready to
expand.
The strength of our economic system is that, beneath the bland economic
statistics reported daily, the system is always driving toward greater
efficiency and productivity. Those gains, in turn, inspire growth and create
wealth. The pressure and incentive for positive change is heightened during
downturns. Thus, our economy is often stronger
in the ensuing recovery. It is the combination of our political freedom and our
flexible economic system that has created the world's richest and most
productive country.
The change that our system creates and accommodates is astonishing. At the
beginning of the 20th century, 60 million Americans were employed in
agriculture. Today, that number has shrunk to an almost unbelievable 2.5 million
people. In the 1950s, 35% of Americans were employed in manufacturing; that
number has now fallen to 15%. Manufacturing supplanted farming as the country's
dominant employer and wealth generator. Now, the service and technology sectors
are taking their turn as the nation's leading economic sectors.
The changes under way in executive compensation and taxation of shareholder
dividends are important for all investors to understand. The use of stock grants
instead of stock options--that is, real money in place of pipe dreams and
gimmicks--should shore up the financial foundation of American corporations.
Likewise, the dividend tax law change should have far-reaching consequences. The
time-honored practice of companies returning part of their profits to
shareholders is a sound one. Issuing dividends will make corporate executives
more sensitive to downside risk as well as upside opportunity. The impact of
lower taxes on those dividends could be massive.
The United States and the rest of the world are in a consolidation phase
following the 1990s, a period that was--in every economic sense--abnormal. The
boom and the resultant bust scared and disoriented all of us. But we believe
that chapter is closing, and we are wiser for the lessons it taught us.
At the end of the day, there is a good chance that governmental growth
initiatives throughout the world will work. If they do, the world's economy will
recover, and we could reach a healthy 4%-plus real growth rate in 2004. The
current program of policy and tax changes should lay the foundation for job
growth and a sustained period of better economic times.
Investors should get on the right side of these trends by continuing to invest
using the appropriate combination of stocks and bonds, always consistent with
their long-term financial goals.
/s/ Dick
Strong Advisor Common Stock Fund
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Your Fund's Approach
The Strong Advisor Common Stock Fund seeks capital growth. The Fund invests,
under normal conditions, at least 80% of its assets in common stocks of small-
and medium-capitalization companies that the Fund's managers believe are
underpriced yet have attractive growth prospects. The managers base their
analysis on a company's "private market value" -- the price an investor would be
willing to pay for the entire company given its management, financial health,
and growth potential. The managers determine a company's private market value
based on a fundamental analysis of a company's cash flows, asset valuations,
competitive standing, and other factors the managers deem to be relevant to each
industry. The managers may sell a stock when its price no longer compares
favorably with the company's private market value.
Growth of an Assumed $10,000 Investment+
From 12-29-89 to 6-30-03
[CHART APPEARS HERE]
The Strong
Advisor Russell Lipper
Common Stock Midcap(R) Mid-Cap Core
Fund Index* Funds Index*
Dec 89 $ 10,000 $ 10,000 $ 10,000
Dec 90 $ 10,100 $ 8,850 $ 8,948
Dec 91 $ 15,864 $ 12,524 $ 13,741
Dec 92 $ 19,161 $ 14,571 $ 15,086
Dec 93 $ 23,988 $ 16,654 $ 17,698
Dec 94 $ 23,872 $ 16,306 $ 17,578
Dec 95 $ 31,609 $ 21,924 $ 22,033
Dec 96 $ 38,078 $ 26,089 $ 25,980
Dec 97 $ 47,223 $ 33,657 $ 31,753
Dec 98 $ 50,340 $ 37,055 $ 34,223
Dec 99 $ 70,653 $ 43,811 $ 43,872
Dec 00 $ 69,804 $ 47,425 $ 46,617
Dec 01 $ 68,617 $ 44,758 $ 44,333
Dec 02 $ 55,400 $ 37,513 $ 36,631
Jun 03 $ 64,697 $ 43,315 $ 41,801
+ 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
Russell Midcap(R) Index and the Lipper Mid-Cap Core 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. The graph and the Average Annual Total Returns table do not
reflect the deduction of taxes, if any, that a shareholder would pay on
Fund distributions or the redemption of Fund shares. This graph is based on
Class Z shares only; performance for other classes will vary, due to
differences in fee structures.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
The Fund experienced solid performance during the first six months of 2003. We
were pleased with the performance of the portfolio, both during the weakness
experienced in the market earlier in the period and the strength in the market
seen as the six months came to a close.
The first six months of 2003 were characterized by significant market
volatility. A strong January gave way to a sharp sell-off in February and early
March, as investors grappled with uncertainties associated with the pending
conflict in Iraq and the economic impact of the SARS outbreak. We saw lower
stock prices across industries. The Fund took advantage of this sell-off to
upgrade the quality of its holdings and add to existing positions.
Once the Iraq conflict began and it was clear that coalition forces were making
rapid progress, the stock market rallied strongly through the end of June.
Almost all stocks participated in this rally, with lower-quality stocks
recording the best performance of any group.
The impact of the new tax law
While the major events during the past six months appeared to be largely
geopolitical in nature, the changes in domestic policy during this period were,
if anything, even more significant. The U.S. government implemented sweeping tax
changes that sharply reduced the capital-gains and dividends-received tax rates,
significantly improving the investment landscape.
Historically, reductions in capital-gains taxes have unleashed a fury of
entrepreneurial activity, with new businesses and even industries created.
Reducing capital-gains tax rates also has been shown to spur mergers and
acquisitions activity.
Our underlying investment methodology for the Fund is to determine a company's
private market value--what that company would be worth if sold as a whole--and
then buy the stock at a deep discount to
2
that value. Our goal isn't to invest only in companies that will be acquired,
but we look at many of the same metrics that may also attract would-be
acquirers. A return to a healthier environment for corporate acquisitions is
clearly positive for equity values in general and for the Fund in particular.
The reduction in dividend taxes is also highly significant and may prove to be
the most far-reaching change of the next decade. Going forward, it is likely
that corporate managements will be under increasing pressure to pay dividends
rather than continue to pour capital into low-return projects. We are actively
seeking out those companies that we believe can increase their dividends
dramatically over the next few years, or those that will have the ability to
begin paying dividends.
Sectors providing pockets of opportunity
With our private market value methodology, the portfolio may have some
concentration in industries that are undervalued due to a temporary change in
sentiment or fundamental outlook. Such temporary changes can give us the chance
to invest in good companies at discounted valuations. In the first six months of
2003, we found such opportunities in biotechnology, Internet stocks, the airline
industry, and selected areas within healthcare and technology.
The pricing of biotechnology stocks is, more than with most industries, ruled by
the tug between fear and greed. During February and March, there was a great
deal of fear in the marketplace, causing biotechnology stock prices to drop to
levels that made them attractive candidates for purchase. Now we are witnessing
a sea of change in the FDA approval process for novel therapeutic drugs. After
several years in which the FDA rejected drug approvals and forced additional
clinical studies, the agency now is more receptive to quickly approving
products. Many investors overlooked this favorable backdrop, allowing the Fund
to benefit.
With regard to the Internet sector, many investors, fatigued after a three-year
meltdown in the sector, adopted a posture of rejecting all Internet stocks.
However, we found certain Internet business models highly attractive and
believed valuations on those companies were unduly low. As investors began to
discern the difference between the good and bad Internet companies--and
recognize the strength of the survivors--the Fund's holdings in this area were
rewarded.
Our outlook
Generally, we do not allow a top-down market view to drive our investment
activity. We believe that our private market value methodology is applicable in
down markets and up. That said, it does appear to us that the equity markets
should benefit from the monetary and fiscal stimulus emanating from Washington,
from merger and acquisition activity that could result from recent changes in
tax policy, and from an eventual economic rebound.
We appreciate your continued investment in the Strong Advisor Common Stock Fund.
Richard T. Weiss
Portfolio Co-Manager
Ann M. Miletti
Portfolio Co-Manager
Average Annual Total Returns
As of 6-30-03
Class A/2/
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1-year 1.37%
5-year 3.26%
10-year 10.72%
Since Fund Inception 13.93%
(12-29-89)
Class B/1/, /2/
- ----------------------------------------
1-year 1.67%
5-year 3.56%
10-year 10.98%
Since Fund Inception 14.13%
(12-29-89)
Class C/1/, /2/
- ----------------------------------------
1-year 5.67%
5-year 3.90%
10-year 10.81%
Since Fund Inception 13.87%
(12-29-89)
Class Z/3/
- ----------------------------------------
1-year 7.74%
5-year 4.82%
10-year 11.75%
Since Fund Inception 14.83%
(12-29-89)
Equity funds are volatile investments and should only be considered for
long-term goals.
/1/ From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
/2/ Load-adjusted performance reflects the effect of the maximum sales charge
of 5.75% for Class A, the applicable contingent deferred sales charge of
5.00% in year 1 and eliminated after year 6 for Class B, and the applicable
contingent deferred sales charge of 1.00% and eliminated after 12 months
for Class C. The performance of the Class A, B, and C shares is based on
the performance of the Fund's Class Z shares (formerly Retail Class shares)
prior to 11-30-00. The performance of the Class A shares is restated to
reflect the load and the different expenses of the Class A shares, as
applicable. The performance of the Class B shares is restated to reflect
the contingent deferred sales charge, the different expenses of the Class B
shares and the conversion to Class A shares after eight years, as
applicable. The performance of the Class C shares is restated to reflect
the contingent deferred sales charge and the different expenses of the
Class C shares, as applicable.
/3/ Performance information is for Class Z shares (formerly Retail Class
shares). The Strong Advisor Common Stock Fund Class Z shares are closed to
new accounts, though the Fund may continue to offer its shares to certain
company-sponsored retirement plans, institutional investors meeting
specific eligibility requirements, and other limited groups as described in
the prospectus. Please consult a prospectus for information about all share
classes.
Because smaller companies often have narrower markets and limited financial
resources, investments in these stocks present more risk than investments
in those of larger, more established companies.
* The Russell Midcap(R) Index measures the performance of the 800 smallest
companies in the Russell 1000 Index, which represent approximately 26% of
the total market capitalization of the Russell 1000 Index. The Lipper
Mid-Cap Core Funds Index is the average of the 30 largest funds in the
Lipper Mid-Cap Core Funds Category. Source of the Russell index data is
Standard & Poor's Micropal. Source of the Lipper index data is Lipper Inc.
3
Strong Advisor Mid Cap Growth Fund
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Your Fund's Approach
The Strong Advisor Mid Cap Growth Fund seeks capital growth. The Fund
invests, under normal conditions, at least 80% of its assets in stocks of
medium-capitalization companies that the Fund's manager believes 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 Russell Midcap(R) Index* at
the time of investment. Although the Fund may invest in stocks of any economic
sector, at times it may emphasize the consumer cyclicals, healthcare, and
technology sectors or other sectors. The Fund may invest in derivative
securities for nonspeculative purposes (e.g., to manage investment risks, for
liquidity, or to enhance the Fund's return) and may utilize an active trading
approach. 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.
Growth of an Assumed $10,000 Investment+
From 12-31-96 to 6-30-03
[CHART APPEARS HERE]
The Strong Lipper
Advisor Mid Russell Mid-Cap
Cap Growth Midcap(R) Growth Funds
Fund Index* Index*
Dec 96 $ 10,000 $ 10,000 $ 10,000
Jun 97 $ 10,104 $ 11,263 $ 10,329
Dec 97 $ 11,385 $ 12,901 $ 11,134
Jun 98 $ 13,196 $ 14,079 $ 12,332
Dec 98 $ 13,035 $ 14,203 $ 12,558
Jun 99 $ 16,577 $ 15,671 $ 14,590
Dec 99 $ 25,031 $ 16,793 $ 21,816
Jun 00 $ 27,539 $ 17,652 $ 22,754
Dec 00 $ 22,911 $ 18,178 $ 18,296
Jun 01 $ 19,612 $ 17,821 $ 16,017
Dec 01 $ 15,841 $ 17,156 $ 14,441
Jun 02 $ 11,986 $ 16,177 $ 11,933
Dec 02 $ 9,865 $ 14,379 $ 10,330
Jun 03 $ 11,906 $ 16,603 $ 11,959
+ 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
Russell Midcap(R) Index and the Lipper Mid-Cap Growth 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. The graph and the Average Annual Total Returns table do not
reflect the deduction of taxes, if any, that a shareholder would pay on
Fund distributions or the redemption of Fund shares. This graph is based on
Class Z shares only; performance for other classes will vary, due to
differences in fee structures.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
The first half of 2003 was very much a tale of two quarters. In the first
quarter, results were essentially flat, as the markets continued their sell-off
from late 2002, then began to rally toward the second half of March. In the
second quarter, however, the equity markets improved sharply, posting their
strongest quarter in years.
The Strong Advisor Mid Cap Growth Fund had a solid first six months of 2003,
both in absolute terms and relative to its broad-based benchmark, the Russell
Midcap Index. The Fund outperformed during the first quarter, then performed
more closely in line with the market during the second-quarter rally.
The market's tone changed
Stocks' sell-off early in 2003 was the result of a number of factors. The
uncertainty surrounding the war with Iraq played a large role, as did continued
sluggishness in the economy. On the whole, investors appeared to have had
minimal confidence toward buying stocks.
By early spring, however, sentiment improved markedly. When first-quarter
results came in, profit growth proved to be strong. The war in Iraq was
successful and relatively short in duration. Compounding the impact of this good
news were continued easing of interest rates by the Federal Reserve,
acceleration of income tax cuts, and reductions in the tax rates on dividends
and capital gains. A weak U.S. dollar also helped, as it made our goods more
attractive to buyers in foreign markets.
4
A number of factors drove outperformance
The Fund's holdings in growth companies, closely tied to an improving economy,
contributed to the Fund's strong performance. For example, our overweightings in
technology stocks and selected consumer segments contributed positively to
returns. In addition, our underweightings in more conservative, defensive areas
such as consumer staples also had positive impact on performance, as these
stocks lagged behind in the growth driven rally.
In making all of these decisions, we relied heavily on our time-tested,
research-intensive investment process, seeking out those companies that are
leaders in their industries or have the potential to become one. We look for
companies with solid balance sheets, sensible business plans, and high quality
leadership to act on them.
Our outlook
We continue to believe the environment for improving corporate profitability is
providing investors with significant opportunities. As we have in the past, we
continue to search out and invest in companies with strong competitive
advantages that can generate superior earnings and revenue growth. These stocks
don't lead the market every quarter, but we believe this is a rewarding
long-term strategy.
We believe the current environment is very similar to that which prevailed in
the early 1960s, when low inflation, low interest rates, and moderate economic
growth combined to help produce a strong cyclical bull market. We will continue
to adhere to our active investment strategy, emphasizing compelling investment
themes based on changing demographics, medical advances, and unit growth. We
believe this approach can lead us to sectors and companies that offer the
potential for superior growth over time.
Thank you for your investment in the Strong Advisor Mid Cap Growth Fund. We
appreciate the confidence you've placed in us.
Brandon M. Nelson
Portfolio Manager
Average Annual Total Returns
As of 6-30-03
Class A/2/
- ----------------------------------------
1-year -5.98%
3-year -25.84%
5-year -3.29%
Since Fund Inception 1.62%
(12-31-96)
Class B/1/, /2/
- ----------------------------------------
1-year -6.24%
3-year -27.30%
5-year -3.15%
Since Fund Inception 2.01%
(12-31-96)
Class C/1/, /2/
- ----------------------------------------
1-year -2.15%
3-year -24.86%
5-year -2.70%
Since Fund Inception 2.01%
(12-31-96)
Class Z/1/, /3/
- ----------------------------------------
1-year -0.66%
3-year -24.39%
5-year -2.04%
Since Fund Inception 2.72%
(12-31-96)
Equity funds are volatile investments and should only be considered for
long-term goals.
/1/ From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
/2/ Load-adjusted performance reflects the effect of the maximum sales charge
of 5.75% for Class A, the applicable contingent deferred sales charge of
5.00% in year 1 and eliminated after year 6 for Class B, and the applicable
contingent deferred sales charge of 1.00% and eliminated after 12 months
for Class C. The performance of the Class A, B, and C shares is based on
the performance of the Fund's Class Z shares (formerly Retail Class shares)
prior to 11-30-00. The performance of Class A shares is restated to reflect
the load and the different expenses of the Class A shares, as applicable.
The performance of the Class B shares is restated to reflect the contingent
deferred sales charge and the different expenses of the Class B shares, as
applicable. The performance of the Class C shares is restated to reflect
the contingent deferred sales charge and the different expenses of the
Class C shares, as applicable.
/3/ Performance information is for Class Z shares (formerly Retail Class
shares). The Strong Advisor Mid Cap Growth Fund Class Z shares are closed
to new accounts, though the Fund may continue to offer its shares to
certain company-sponsored retirement plans, institutional investors meeting
specific eligibility requirements, and other limited groups as described in
the prospectus. Please consult a prospectus for information about all share
classes.
* The Russell Midcap(R) Index measures the performance of the 800 smallest
companies in the Russell 1000 Index, which represent approximately 26% of
the total market capitalization of the Russell 1000 Index. The Lipper
Mid-Cap Growth Funds Index is the average of the 30 largest funds in the
Lipper Mid-Cap Growth Funds Category. Source of the Russell index data is
Standard & Poor's Micropal. Source of the Lipper index data is Lipper Inc.
5
Strong Advisor Small Cap Value Fund
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Your Fund's Approach
The Strong Advisor Small Cap Value Fund seeks capital growth. The Fund invests,
under normal conditions, at least 80% of its assets in stocks of
small-capitalization companies that the Fund's manager believes are undervalued
relative to the market based on earnings, cash flow, or asset value. The Fund
defines "small-capitalization companies" as companies with a market
capitalization substantially similar to that of companies in the Russell
2500(TM) Index at the time of investment. The manager specifically looks for
companies whose stock prices may benefit from a positive dynamic of change, such
as a new management team, a new product or service, a corporate restructuring,
an improved business plan, or a change in the political, economic, or social
environment. The Fund writes put and call options. The Fund may also invest up
to 30% of its net assets in foreign securities. The manager may sell a stock
when he believes fundamental changes will hurt the company over the long term or
when its price becomes excessive.
Growth of an Assumed $10,000 Investment+
From 12-31-97 to 6-30-03
[CHART APPEARS HERE]
The Strong Lipper
Advisor Russell Small-Cap
Small Cap 2000(R) Value Funds
Value Fund Index* Index*
Dec 97 $ 10,000 $ 10,000 $ 10,000
Jun 98 $ 11,730 $ 10,493 $ 10,419
Dec 98 $ 10,610 $ 9,745 $ 9,329
Jun 99 $ 12,230 $ 10,650 $ 9,873
Dec 99 $ 13,590 $ 11,817 $ 9,505
Jun 00 $ 15,860 $ 12,176 $ 9,976
Dec 00 $ 17,170 $ 11,460 $ 11,036
Jun 01 $ 21,140 $ 12,245 $ 12,747
Dec 01 $ 20,259 $ 11,745 $ 12,934
Jun 02 $ 21,842 $ 11,193 $ 13,398
Dec 02 $ 19,017 $ 9,339 $ 11,486
Jun 03 $ 21,742 $ 11,009 $ 13,293
+ 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
Russell 2000(R) Index and the Lipper Small-Cap Value 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. The graph and the Average Annual Total Returns table do not
reflect the deduction of taxes, if any, that a shareholder would pay on
Fund distributions or the redemption of Fund shares. This graph is based on
Class Z shares only; performance for other classes will vary, due to
differences in fee structures.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
The Fund delivered double-digit returns during the first six months of 2003, but
it modestly lagged its benchmark, the Russell 2000 Index, which was driven
primarily by growth stocks. The first two-and-a-half months of the year were
challenging, but the Fund--and the markets--rebounded strongly thereafter.
Positive developments in the second quarter
The first two months of the year started off troublesome and wearisome, weighed
down by negative economic data, concerns about impending war with Iraq, the SARS
outbreak, and poor weather conditions.
Beginning in mid-March, though, a strong reversal of some of those trends
converged to drive a market rally. Among the positive factors were
better-than-expected corporate earnings, a quick resolution to the Iraq war,
continued interest-rate easing by the Federal Reserve, and improving consumer
confidence. In addition, new tax legislation passed in May that featured cuts on
capital gains and dividends spurred more gains toward the end of the period.
Stock indices posted double-digit returns for the first half of the year, with
small-cap stocks outperforming large caps, and growth stocks edging out value.
Stock selection drove performance
The strongest sectors of the market for the first half of the year were
technology and healthcare. The Fund benefited from having an overweighting in
healthcare stocks but was underweighted in technology.
6
Good individual stock selection contributed positively to our results over the
period. Our stronger-performing picks came from a number of different areas and
included a leading engineering and construction company, a specialty finance
company, and a specialist in both machine tool equipment and supply chain
management technology.
Offsetting positive results from those selections was underperformance from the
Fund's position in precious metals stocks. These were strong performers in 2002,
but they have sold off from profit-taking so far this year.
The outlook for value investing
For the past three years, the economy and the markets were on a declining trend.
For many investors, fear and a desire for capital preservation overpowered the
quest for capital appreciation. As a result, the proportion of assets in money
market funds and fixed-income investments has reached a very high level. If the
equity markets continue to improve, more investors could be enticed to shift
more of these assets into stocks.
The Federal Reserve has been a good friend to many by providing ample liquidity
with low interest rates.
Housing prices in general remain strong, with many homeowners taking advantage
of low interest rates by refinancing mortgages--in many cases more than once--
and also taking advantage of cash-out mortgages. Nothing inspires consumers'
confidence more than having additional money in their pockets. We might prefer
to see consumers getting that money through job growth and improved personal
income, but at this point, the end result is the same.
The year 2004 will bring with it a Presidential election. The Bush
Administration is working to win votes and has a Republican-majority Senate
eager to provide fiscal stimulus for the economy to help. For the moment, the
overall environment is starting to look good, and we believe this scenario bodes
well for a cyclical market upturn. But just as the sailor who survives a
hurricane becomes a changed sailor forever, we also believe investors who have
been through the past three years will give greater consideration to value
investing.
Thank you for your continued interest in the Strong Advisor Small Cap Value
Fund.
I. Charles Rinaldi
Portfolio Manager
Average Annual Total Returns
As of 6-30-03
Class A/2/
- ----------------------------------------
1-year -6.29%
3-year 8.71%
5-year 11.54%
Since Fund Inception 13.68%
(12-31-97)
Class B/1/, /2/
- ----------------------------------------
1-year -6.39%
3-year 9.04%
5-year 11.99%
Since Fund Inception 14.18%
(12-31-97)
Class C/1/, /2/
- ----------------------------------------
1-year -2.35%
3-year 10.22%
5-year 12.29%
Since Fund Inception 14.32%
(12-31-97)
Class Z/1/, /3/
- ----------------------------------------
1-year -0.46%
3-year 11.09%
5-year 13.14%
Since Fund Inception 15.18%
(12-31-97)
Equity funds are volatile investments and should only be considered for
long-term goals.
/1/ From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
/2/ Load-adjusted performance reflects the effect of the maximum sales charge
of 5.75% for Class A, the applicable contingent deferred sales charge of
5.00% in year 1 and eliminated after year 6 for Class B, and the applicable
contingent deferred sales charge of 1.00% and eliminated after 12 months
for Class C. The performance of the Class A, B, and C shares is based on
the performance of the Fund's Class Z shares (formerly Retail Class shares)
prior to 11-30-00. The performance of the Class A shares is restated to
reflect the load and the different expenses of the Class A shares, as
applicable. The performance of the Class B shares is restated to reflect
the contingent deferred sales charge and the different expenses of the
Class B shares, as applicable. The performance of the Class C shares is
restated to reflect the contingent deferred sales charge and the different
expenses of the Class C shares, as applicable.
/3/ Performance information is for Class Z shares (formerly Retail Class
shares). The Strong Advisor Small Cap Value Fund Class Z shares are closed
to new accounts, though the Fund may continue to offer its shares to
certain company-sponsored retirement plans, institutional investors meeting
specific eligibility requirements, and other limited groups as described in
the prospectus. Please consult a prospectus for information about all share
classes.
Because small companies often have narrower markets and limited financial
resources, investments in these stocks present more risk than investments
in those of larger, more established companies.
* The Russell 2000(R) Index measures the performance of the 2,000 smallest
companies in the Russell 3000 Index, which represents approximately 8% of
the total market capitalization of the Russell 3000 Index. The Lipper
Small-Cap Value Funds Index is the average of the 30 largest funds in the
Lipper Small-Cap Value Funds Category. Source of the Russell index data is
Standard & Poor's Micropal. Source of the Lipper index data is Lipper Inc.
7
Strong Advisor U.S. Value Fund
- --------------------------------------------------------------------------------
Your Fund's Approach
The Strong Advisor U.S. Value Fund seeks total return by investing for both
income and capital growth. The Fund invests, under normal conditions, at least
80% of its assets in stocks of U.S. companies that the Fund's manager believes
are undervalued relative to the market based on discounted cash flows, earnings,
and asset value. The Fund may invest in stocks of any size. The manager's
philosophy is that improving returns on invested capital drives improving
valuations. The manager selects securities by screening for undervalued
securities and utilizing fundamental analysis such as management interviews and
financial modeling analysis to select those securities with improving returns on
capital. Although the Fund may invest in stocks of any economic sector, at times
it may emphasize the financial sector or other sectors. The manager may use a
risk management tool to attempt to limit the difference between the Fund's
return and the return of a style-specific benchmark. In addition, the Fund may
invest in derivative securities for nonspeculative purposes (e.g., to manage
investment risk, for liquidity, or to enhance the Fund's return). The manager
may sell a holding when changes in price or growth potential no longer make it
an attractive investment.
Growth of an Assumed $10,000 Investment+
From 12-29-95 to 6-30-03
[CHART APPEARS HERE]
The Strong Lipper
Advisor Large-Cap
U.S. Value S&P 500 Value Funds
Fund Index* Index*
Dec 95 $ 10,000 $ 10,000 $ 10,000
Jun 96 $ 11,296 $ 11,009 $ 10,883
Dec 96 $ 12,810 $ 12,295 $ 12,107
Jun 97 $ 15,126 $ 14,827 $ 14,189
Dec 97 $ 16,822 $ 16,395 $ 15,554
Jun 98 $ 19,327 $ 19,297 $ 17,539
Dec 98 $ 20,632 $ 21,080 $ 18,391
Jun 99 $ 22,231 $ 23,689 $ 20,456
Dec 99 $ 23,736 $ 25,515 $ 20,373
Jun 00 $ 23,305 $ 25,408 $ 19,968
Dec 00 $ 23,323 $ 23,194 $ 20,771
Jun 01 $ 21,952 $ 21,642 $ 20,012
Dec 01 $ 20,590 $ 20,440 $ 18,990
Jun 02 $ 19,321 $ 17,752 $ 17,261
Dec 02 $ 17,120 $ 15,924 $ 15,254
Jun 03 $ 19,089 $ 17,795 $ 16,893
+ 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
S&P 500 Index ("S&P 500") and the Lipper Large-Cap Value 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. The graph and the Average Annual Total
Returns table do not reflect the deduction of taxes, if any, that a
shareholder would pay on Fund distributions or the redemption of Fund
shares. This graph is based on Class Z shares only; performance for other
classes will vary, due to differences in fee structures.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
As is typical in the early stages of an economic recovery, in the first six
months of 2003, smaller stocks outperformed larger stocks, and growth stocks
performed better than value stocks. In a departure from the previous three
years, all equity categories delivered positive results.
Because of our value discipline in a growth-tilted market, the Strong Advisor
U.S. Value Fund slightly underperformed its broad-based index, the S&P 500
Index. The Fund did, however, outperform its peer group average, the Lipper
Large-Cap Value Funds Index.
Strength in the year's second quarter
After a slow first quarter, the pace of all markets quickened in the second
quarter. Financial assets of all types--stocks, bonds, and
commodities--appreciated sharply. Bond yields decreased to levels not seen since
the 1950s, and the S&P 500 Index posted its best quarterly return since 1998.
Gold reached a seven-year high, oil hit levels last reached in 1990, and natural
gas matched its all-time high. A swift and favorable end to major combat in
Iraq, along with unprecedented liquidity provided by tax cuts, 50-year-low
interest rates, large amounts of cash in the system, and ever-rising home values
all contributed to the positive investment environment.
We would caution, however, that liquidity-driven markets like the one we have
just experienced are not sustainable without improving economic fundamentals.
And while it does appear that the economy did reach a bottom, it is not clear
when and if significant growth in revenues, profits, and
8
employment will occur. Given these concerns, we expect our valuation discipline
and our focus on risk management to be of greater importance over the next six
months than they were in the first half of the year.
Factors driving the Fund's performance
The portfolio's performance was helped by solid stock selection, particularly in
financials and consumer discretionary stocks. On the other side, holdings in the
energy and utilities sectors were modest drags on performance.
During the six months, we took profits on many of our holdings in the financials
sector. While these stocks have contributed positively to performance, we
believe that if interest rates increase--a reasonable expectation given their
currently low levels--these stocks could underperform. With the proceeds from
these sales, we added several stocks from the materials sector, specifically
paper and packaging. We believe these stocks should be able to benefit more from
an economic recovery, yet we were still able to purchase them at compelling
valuations.
Looking ahead at the markets
We believe liquidity alone will not be sufficient to fuel a continued market
upturn. The good news, though, is that we also believe the steep market declines
of the past three years are behind us. We also believe companies are now less
vulnerable to self inflicted body-blows in the form of accounting irregularities
and other corporate malfeasance.
We will continue to keep our heads down and our eyes open, seeking out companies
with solid assets, manageable debt levels, and credible management teams. We
will work to buy these companies at attractive prices--which often come when
they are temporarily out of favor with the market.
Thank you for your investment in the Strong Advisor U.S. Value Fund.
Robert J. Costomiris
Portfolio Manager
Average Annual Total Returns
As of 6-30-03
Class A/2/
- ----------------------------------------
1-year -6.56%
3-year -8.25%
5-year -1.55%
Since Fund Inception 7.92%
(12-29-95)
Class B/1/, /2/
- ----------------------------------------
1-year -6.53%
3-year -8.59%
5-year -1.44%
Since Fund Inception 8.08%
(12-29-95)
Class C/1/, /2/
- ----------------------------------------
1-year -2.60%
3-year -7.01%
5-year -1.01%
Since Fund Inception 8.09%
(12-29-95)
Class K/1/, /2/
- ----------------------------------------
1-year -0.32%
3-year -5.99%
5-year 0.04%
Since Fund Inception 9.21%
(12-29-95)
Class Z/3/
- ----------------------------------------
1-year -1.20%
3-year -6.44%
5-year -0.25%
Since Fund Inception 9.00%
(12-29-95)
Equity funds are volatile investments and should only be considered for
long-term goals.
/1/ From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
/2/ Load-adjusted performance reflects the effect of the maximum sales charge
of 5.75% for Class A, the applicable contingent deferred sales charge of
5.00% in year 1 and eliminated after year 6 for Class B, and the applicable
contingent deferred sales charge of 1.00% and eliminated after 12 months
for Class C. The performance of the Class A, B, and C shares is based on
the performance of the Fund's Class Z shares (formerly Retail Class shares)
prior to 11-30-00. The performance of the Class A shares is restated to
reflect the load and the different expenses of the Class A shares. The
performance of the Class B shares is restated to reflect the contingent
deferred sales charge and the different expenses of the Class B shares, as
applicable. The performance of the Class C shares is restated to reflect
the contingent deferred sales charge and the different expenses of the
Class C shares, as applicable. The performance of Class K shares prior to
December 31, 2001, is based on the Fund's Class Z (formerly Investor Class)
shares' performance. Please consult a prospectus for information about all
share classes.
/3/ Performance information is for Class Z shares (formerly Retail Class
shares). The Strong Advisor U.S. Value Fund Class Z shares are closed to
new accounts, though the Fund may continue to offer its shares to certain
company sponsored retirement plans, institutional investors meeting
specific eligibility requirements, and other limited groups as described in
the prospectus. Please consult a prospectus for information about all share
classes.
* The S&P 500 Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market value weighted index
(stock price times number of shares outstanding), with each stock's weight
in the Index proportionate to its market value. The Lipper Large-Cap Value
Funds Index is the average of the 30 largest funds in the Lipper Large-Cap
Value Funds Category. Source of the S&P index data is Standard & Poor's
Micropal. Source of the Lipper index data is Lipper Inc.
9
Strong Advisor Endeavor Large Cap Fund
- --------------------------------------------------------------------------------
Your Fund's Approach
The Strong Advisor Endeavor Large Cap Fund seeks capital growth. The Fund
invests, under normal conditions, at least 80% of its assets in stocks of
large-capitalization companies that its managers believe offer the potential for
capital growth. Large-capitalization companies are defined as those companies
with a market capitalization substantially similar to that of companies in the
S&P 500 Composite Stock Price Index at the time of investment. The Fund's
managers seek to identify companies that have the prospect of improving sales
and earnings growth rates, enjoy a competitive advantage (for example, dominant
market share), and have effective management with a history of making
investments that are in the best interests of shareholders (for example,
companies with a history of earnings and sales growth that are in excess of
total asset growth). The Fund may utilize an active trading approach. The
managers may choose to sell a holding when it no longer offers attractive growth
prospects or to take advantage of a better investment opportunity.
Growth of an Assumed $10,000 Investment+
From 9-28-01 to 6-30-03
[CHART APPEARS HERE]
The Strong
Advisor Lipper
Endeavor Large-Cap
Large Cap S&P 500 Growth Funds
Fund Index* Index*
Sep 01 $ 9,425 $ 10,000 $ 10,000
Dec 01 $ 10,222 $ 11,068 $ 11,422
Mar 02 $ 9,710 $ 11,099 $ 11,132
Jun 02 $ 8,330 $ 9,613 $ 9,371
Sep 02 $ 7,133 $ 7,953 $ 7,869
Dec 02 $ 7,287 $ 8,623 $ 8,211
Mar 03 $ 7,239 $ 8,351 $ 8,084
Jun 03 $ 8,310 $ 9,637 $ 9,176
+ 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
S&P 500 Index ("S&P 500") and the Lipper Large-Cap Growth 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 of the Fund vary, and you
may have a gain or loss when you sell shares. The graph and the Average
Annual Total Returns table do not reflect the deduction of taxes, if any,
that a shareholder would pay on Fund distributions or the redemption of
Fund shares. This graph is based on Class A shares only and reflects the
effect of the maximum sales charge of 5.75%; performance for other share
classes will vary, due to differences in fee structures and sales charges.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
During the first six months of 2003, the Strong Advisor Endeavor Large Cap Fund
outperformed its broad-based benchmark, the S&P 500 Index. After a sluggish
first quarter, the stock market sprung back to life during the second quarter,
as investors anticipated an improving economic environment after the Iraq war.
The Fund was able to post strong performance, even with its large-cap focus, in
an environment that generally favored smaller-capitalization stocks.
War had significant impact on markets
One of the most significant events during the first half of 2003 was the onset
and conclusion of the war in Iraq. In the early part of the year, there was much
uncertainty as to whether the war would take place at all and, if so, how long
it might last. In such an environment, business leaders were unwilling to make
significant capital expenditures or to hire new employees. As a result, the
entire economy was in a holding pattern until the main thrust of the conflict
ended in mid-April.
When the war concluded, consumer sentiment soared upward and the market
experienced an increase in speculative activity, with market participants
demonstrating a preference for riskier companies in the biotech, Internet,
communication, technology, and cyclical sectors. As May progressed, however,
actual evidence of an improving economy failed to materialize. In response,
interest rates began to fall, which further fueled investor speculation,
increasing demand for interest rate-sensitive and highly leveraged companies.
10
Other contributing factors to the strong equity market in May and June were the
announcements out of Washington of a dividend tax cut, a corporate spending
stimulus package, and a Medicare drug benefit program.
Stock selection benefited performance
Through the first half of 2003, we increased the Fund's exposure to sectors that
we believed would perform well in anticipation of an economic recovery and
reduced exposure to sectors that were more defensive in nature. Specifically, we
increased our weighting in technology, industrials, and consumer discretionary
stocks--particularly media--and decreased our level of investment in
healthcare-related stocks relative to the Russell 1000(R) Growth Index.
Our continued focus on identifying attractive opportunities through extensive
bottom-up research has benefited the Fund significantly so far this year.
Although we reduced the Fund's overall exposure to healthcare stocks, we did
maintain a significant position in a large health-benefits provider that proved
to be a standout performer over the past six months. It now appears poised to
improve its competitive position and profitability even further. Our research
into a large Internet and media company suggested to us that investors were
overlooking the company's potential to accelerate earnings by adding subscribers
for higher-end services and cutting costs aggressively.
Other meaningful, positive contributors to the Fund's performance came from the
technology, industrials, and biotechnology areas.
Outside of the company discussed earlier, our healthcare exposure hurt the
Fund's performance over the period. A major hospital company in the portfolio
announced it would not meet its March earnings targets. Because we were
concerned about the long-term prognosis for the company, we sold the stock.
Market's attention may shift somewhat
The strongest performers so far in 2003 have been those stocks that
underperformed the most during 2001 and 2002. This turnaround has been largely
the result of investors making plays on companies with depressed margins and
pricing power. Much of the optimism for an economic recovery--and an improvement
in these companies' earnings--rests on the assumption that fiscal and monetary
policies will be successful in stimulating capital spending and increasing
earnings growth.
In order for pricing power to return, however, there needs to be a modest amount
of reflation--inflation--in the economy. The obvious risk is that too much
inflation could raise interest rates, with adverse impact on consumer spending
and the housing market, both of which have been crucial in keeping the economy
afloat during the recent economic downturn.
We believe that the market will become increasingly selective, with performance
being driven primarily by sectors offering meaningful innovation and by
industries that have consolidated and restructured. We believe these
characteristics will likely be found in such sectors as technology, energy,
industrials, and consumer discretionary companies, and we will be paying close
attention to developments in these and other areas of the market.
We appreciate your investment in the Strong Advisor Endeavor Large Cap Fund.
Thomas J. Pence
Portfolio Co-Manager
D. Paul Berg
Portfolio Co-Manager
Average Annual Total Returns
As of 6-30-03
Class A/1/, /2/
- ----------------------------------------
1-year -6.00%
Since Fund Inception -10.02%
(9-28-01)
Class B/1/, /2/
- ----------------------------------------
1-year -5.70%
Since Fund Inception -9.86%
(9-28-01)
Class C/1/, /2/
- ----------------------------------------
1-year -1.70%
Since Fund Inception -7.42%
(9-28-01)
Equity funds are volatile investments and should only be considered for
long-term goals.
/1/ From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
/2/ Load-adjusted performance reflects the effect of the maximum sales charge
of 5.75% for Class A, the applicable contingent sales charge of 5.00% in
year 1 and eliminated after year 6 for Class B, and the applicable
contingent deferred sales charge of 1.00% and eliminated after 12 months
for Class C.
* The S&P 500 Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market value weighted index
(stock price times number of shares outstanding), with each stock's weight
in the Index proportionate to its market value. The Lipper Large-Cap Growth
Funds Index is the average of the 30 largest funds in the Lipper Large-Cap
Growth Funds Category. Source of the S&P 500 index data is Standard &
Poor's Micropal. Source of the Lipper index data is Lipper Inc.
11
Strong Advisor Focus Fund
- --------------------------------------------------------------------------------
Your Fund's Approach
The Strong Advisor Focus Fund seeks capital growth. The Fund focuses, under
normal conditions, on stocks of 30 to 40 companies that its manager believes
have favorable prospects for accelerating growth of earnings but are selling at
reasonable valuations based on earnings, cash flow, or asset value. The
portfolio can include stocks of small-, medium-, or large-capitalization
companies. In addition, the Fund may invest in derivative securities for
nonspeculative purposes (e.g., to manage investment risk, for liquidity, or to
enhance the Fund's return) and may utilize an active trading approach. The
manager may sell a stock when the company's growth prospects become less
attractive.
Growth of an Assumed $10,000 Investment+
From 11-30-00 to 6-30-03
[CHART APPEARS HERE]
Lipper
The Strong Multi-Cap
Advisor S&P 500 Growth Funds
Focus Fund Index* Index*
Nov 00 $ 9,425 $ 10,000 $ 10,000
Dec 00 $ 9,670 $ 10,049 $ 10,311
Mar 01 $ 7,191 $ 8,858 $ 8,018
Jun 01 $ 7,342 $ 9,376 $ 8,789
Sep 01 $ 5,580 $ 8,001 $ 6,468
Dec 01 $ 6,239 $ 8,856 $ 7,717
Mar 02 $ 5,881 $ 8,880 $ 7,453
Jun 02 $ 5,259 $ 7,691 $ 6,163
Sep 02 $ 4,496 $ 6,363 $ 5,112
Dec 02 $ 4,515 $ 6,899 $ 5,415
Mar 03 $ 4,439 $ 6,681 $ 5,374
Jun 03 $ 4,901 $ 7,710 $ 6,262
+ 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
S&P 500 Index ("S&P 500") and the Lipper Multi-Cap Growth 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. The graph and the Average Annual Total
Returns table do not reflect the deduction of taxes, if any, that a
shareholder would pay on Fund distributions or the redemption of Fund
shares. This graph is based on Class A shares only and reflects the effect
of the maximum sales charge of 5.75%; performance for other classes will
vary, due to differences in fee structures and sales charges.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
The first half of 2003 was very much a tale of two quarters. In the first
quarter, results were essentially flat, as the markets first continued their
sell-off from late 2002, then began to rally toward the second half of March. In
the second quarter, however, the equity markets improved sharply, posting their
strongest quarter in years. In this environment, the Strong Advisor Focus Fund
posted positive returns but underperformed its broad-based benchmark, the S&P
500 Index. The Fund generated a year-to-date return of 8.56% compared to that of
the S&P 500 Index, which generated a year-to-date return of 11.75% as of June
30, 2003.
A strong market rally
While we entered the year with a sense of cautious optimism, the beginning of
2003 saw a continuation of the worries that plagued the market over the
preceding three years, particularly concerns over the state of the economy and
the health of the U.S. consumer. Added to these was the uncertainty surrounding
the impending war with Iraq and other geopolitical tensions.
In time, however, a positive reality began to offset these fears. When
first-quarter results came in, profit growth proved to be strong. The war in
Iraq was successful and relatively short in duration. Compounding the impact of
this good news was continued easing of interest rates by the Federal Reserve,
acceleration of income tax cuts, and reductions in the tax rates on dividends
and capital gains.
12
Finally, improvement in the corporate bond market had significant impact on
equities as well; the tightening of yield spreads on corporate debt provided
companies with a significant opportunity to improve their balance sheets and
overall liquidity. Taken all together, these factors helped to spur a sweeping
stock market rally, with virtually every market sector producing solidly
positive returns.
Modest changes to the portfolio
The Fund entered 2003 fully invested, with an emphasis on companies and sectors
positioned to benefit most strongly from an improving economy. We had taken the
opportunity in late 2002 and early 2003 to reduce some of the Fund's weighting
in the consumer area, as we saw attractive opportunities to invest in growth
stocks in other sectors such as technology and healthcare.
We had also increased our allocation to energy-related stocks, as in our
assessment a very tight market for natural gas presented a good growth
opportunity for a number of companies. Near the end of the six-month period, we
shifted some assets back to consumer stocks that we believe offer superior
growth prospects going forward.
In making all of these decisions, we relied heavily on our hands-on,
research-intensive investment process, seeking out those companies that are
leaders in their industries or have the potential to become one. We seek out
those companies with strong management teams, solid balance sheets, and sensible
business models. Attention to valuations remains an important element of our
decision-making process.
Our outlook
We continue to believe the environment for improving corporate profitability is
providing investors with significant opportunities. As we have in the past, we
continue to search out and invest in companies with strong competitive
advantages that can generate superior earnings and revenue growth. These stocks
don't lead the market every quarter, but we believe this can be a rewarding
long-term strategy.
We believe the current environment is very similar to that which prevailed in
the early 1960s, when low inflation, low interest rates, and moderate economic
growth combined to help produce a strong cyclical bull market. We will continue
to adhere to our active investment strategy, emphasizing compelling investment
themes based on changing demographics, medical advances, and unit growth, which
we believe can lead us to sectors with the potential for superior growth over
time.
Thank you for your investment in the Strong Advisor Focus Fund. We appreciate
the confidence you've continued to place in us.
Thomas C. Ognar
Portfolio Manager
Average Annual Total Returns
As of 6-30-03
Class A/1/, /2/
- ----------------------------------------
1-year -12.16%
Since Fund Inception -24.14%
(11-30-00)
Class B/1/, /2/
- ----------------------------------------
1-year -12.26%
Since Fund Inception -25.30%
(11-30-00)
Class C/1/, /2/
- ----------------------------------------
1-year -8.26%
Since Fund Inception -22.91%
(11-30-00)
Equity funds are volatile investments and should only be considered for
long-term goals.
/1/ From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
The Fund is nondiversified, meaning it may concentrate its assets in fewer
individual holdings than a diversified fund. Therefore, the Fund is more
exposed to individual stock volatility and market pressure than a fully
diversified fund.
/2/ Load-adjusted performance reflects the effect of the maximum sales charge
of 5.75% for Class A, the applicable contingent deferred sales charge of
5.00% in year 1 and eliminated after year 6 for Class B, and the applicable
contingent deferred sales charge of 1.00% and eliminated after 12 months
for Class C.
* The S&P 500 Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market value weighted index
(stock price times number of shares outstanding), with each stock's weight
in the Index proportionate to its market value. The Lipper Multi-Cap Growth
Funds Index is the average of the 30 largest funds in the Lipper Multi-Cap
Growth Funds Category. Source of the S&P index data is Standard & Poor's
Micropal. Source of the Lipper index data is Lipper Inc.
13
Strong Advisor International Core Fund
================================================================================
Your Fund's Approach
The Strong Advisor International Core Fund seeks capital growth. The Fund
invests, under normal conditions, in stocks of any size from any country,
including emerging markets, that appear to have strong growth potential and good
relative value based on valuation measures such as earnings, cash flow, or asset
value. The managers seek to meet the Fund's objective by applying a
multidimensional strategy to investing in international equities. The strategy
is comprised of three parts that continually interact: trend identification,
stock selection, and risk management. Trends are identified that affect global
and regional economic and financial environments, setting a framework for stock
selection. Stocks are then analyzed and ranked based on five key factors:
valuation, growth, management, risk, and sentiment. Stocks chosen for inclusion
in the Fund share similar characteristics, such as an industry leadership
position, innovative products and services, balance sheet strength, and
management teams with demonstrated effectiveness in a competitive global
environment. Risk management through portfolio diversification provides the
means to monitor and moderate volatility for the overall Fund. The managers may
sell a holding when the rank based on the five key factors deteriorates below
average, when management or risk rankings drop below average, when other stocks
rank higher, or when implementing changes driven by risk management
considerations.
Growth of an Assumed $10,000 Investment+
From 9-28-01 to 6-30-03
[CHART APPEARS HERE]
The Strong
Advisor Lipper
International International
Core Fund MSCI EAFE* Funds Index*
Sep 01 $ 9,425 $ 10,000 $ 10,000
Dec 01 $ 9,812 $ 10,697 $ 10,844
Mar 02 $ 9,793 $ 10,752 $ 11,111
Jun 02 $ 9,538 $ 10,524 $ 10,901
Sep 02 $ 8,030 $ 8,447 $ 8,763
Dec 02 $ 8,332 $ 8,992 $ 9,345
Mar 03 $ 7,870 $ 8,254 $ 8,522
Jun 03 $ 9,067 $ 9,844 $ 10,203
+ 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") 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 of the Fund vary, and you may have a gain or
loss when you sell shares. The graph and the Average Annual Total Returns
table do not reflect the deduction of taxes, if any, that a shareholder
would pay on Fund distributions or the redemption of Fund shares. This
graph is based on Class A shares only and reflects the effect of the
maximum sales charge of 5.75%; performance for other share classes will
vary, due to differences in fee structures and sales charges.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
For the six months ended June 30, 2003, the Strong Advisor International Core
Fund produced positive returns but underperformed its benchmark, the MSCI EAFE
Index. The Fund's allocation among different countries (underweighting Japan and
the U.K.) played a positive role in performance over the six months, as did the
strength of the euro and Canadian dollar relative to the U.S. dollar.
The Fund's conservative positioning with respect to sectors, in particular its
smaller exposure to the global financials area, was a positive factor in the
Fund's performance in the first quarter of the year but proved a drawback in the
second quarter when financial stocks posted a recovery. The Fund's
underweighting in technology stocks also cut into performance, as these stocks
experienced strong gains in the second quarter.
A changing tone to global markets
At the beginning of the year, global stock markets continued on much the same
path they had followed in 2002. Negative news with respect to global economic
conditions, geopolitical tensions, and corporate earnings translated to negative
sentiment among the world's investors and led to further drops in stock prices.
Stock market declines were particularly sharp in the core European countries of
Germany, France, and the Netherlands. Interest rate cuts by the European Central
Bank came too late to stimulate economic activity in those countries, which were
suffering from rising unemployment, falling export growth, and sluggish consumer
spending. In the first quarter of 2003, few countries showed higher equity
prices, and no global economic sector experienced positive returns.
14
The situation began to change near the end of the first quarter. Stock markets
around the world took their cues from the United States as coalition forces
began their attack against Saddam Hussein's regime. By the end of the second
quarter, swift victory in Iraq had combined with further interest rate cuts to
increase optimism about the prospects for global economic recovery. As a result,
the world's stock markets delivered their best quarterly performance in nearly
five years and completed the six-month period in positive territory. The
strongest-performing markets and sectors were those that had earlier been hit
hardest.
Although the developed Asian markets were relatively resilient in the first
quarter, they were laggards for the full six-month period. Japan's economy was
constrained by domestic deflation, and selling from domestic and foreign
institutions held back its equity markets. Other parts of Asia, particularly
Hong Kong and China, were affected by the SARS scare and its dampening effect on
consumer, industrial, and tourist activities.
Structuring the portfolio for the global environment
Our investment strategy for 2003 was focused on balancing the Fund between
stocks with stable earnings prospects despite the subdued economic backdrop and
those stocks whose prices already reflected reduced growth expectations,
regardless of their country of origin.
We found relative stability in sectors such as consumer staples and energy. We
increased our positions in leading consumer companies as valuations became more
attractive in the first quarter. A number of companies in this sector have
demonstrated over the years their ability to manage costs effectively and build
market share in difficult times. We also retained several energy companies as
top holdings. Perhaps surprisingly, the energy sector failed to outperform the
international benchmark despite higher oil and gas prices, strong cash flows,
and attractive dividend yields.
We added to our investments in the financials sector as the risk-reward balance
improved based on attractive valuations and reasonable estimates. The Fund's
overall exposure to the sector did, however, remain below the benchmark level.
We increased positions in mining and natural resources stocks, as they stood to
benefit from rising metals and minerals prices in light of favorable
supply/demand characteristics and supportive valuations.
Our outlook
In the short term, it is reasonable to expect some consolidation in stock
markets following the recent explosive rally. For a more sustainable market
recovery, real results must meet or exceed expectations for economic growth and
corporate profitability. Thus, the biggest risk to global stock markets remains
the broad nature of the struggling global economy. Lack of employment growth,
de-leveraging of corporate balance sheets, shortfalls in pension fund reserves,
and slow consumer and capital spending trends all put pressure on international
economies.
Offsetting these negatives is the determination of political and banking leaders
around the world to generate activity through easier fiscal and monetary
policies. Lower interest rates, improving earnings growth, and a reduction in
the perceived risk of investing given reduced geopolitical tensions may provide
the impetus to move markets higher. In light of the conflicting forces at work,
volatility is likely to remain a factor in global stock market action.
We thank you for your investment in the Strong Advisor International Core Fund.
Stacey Ho
Portfolio Co-Manager
Katherine Schapiro
Portfolio Co-Manager
Average Annual Total Returns
As of 6-30-03
Class A/1/, /2/
- ----------------------------------------
1-year -10.43%
Since Fund Inception -5.43%
(9-28-01)
Class B/1/, /2/
- ----------------------------------------
1-year -9.95%
Since Fund Inception -4.64%
(9-28-01)
Class C/1/, /2/
- ----------------------------------------
1-year -6.14%
Since Fund Inception -2.36%
(9-28-01)
Equity funds are volatile investments and should only be considered for
long-term goals.
/1/ From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
An investment in this Fund entails the special risks of international
investing, including currency exchange fluctuation, government regulations,
and the potential for political and economic instability. The Fund's share
price is expected to be more volatile than that of a U.S.-only fund. These
risks are generally intensified for investments in emerging markets.
/2/ Load-adjusted performance reflects the effect of the maximum sales charge
of 5.75% for Class A, the applicable contingent sales charge of 5.00% in
year 1 and eliminated after year 6 for Class B, and the applicable
contingent deferred sales charge of 1.00% and eliminated after 12 months
for Class C.
* The MSCI EAFE(R) Index (Europe, Australasia, Far East) is a free
float-adjusted market capitalization index that is designed to measure
developed market equity performance, excluding the U.S. and Canada. The
Lipper International Funds Index is the average of the 30 largest funds in
the Lipper International Funds Category. These funds invest assets in
securities with primary trading markets outside of the United States.
Source of the MSCI EAFE index data is Standard & Poor's Micropal. Source of
the Lipper index data is Lipper Inc.
15
Strong Advisor Select Fund
- --------------------------------------------------------------------------------
Your Fund's Approach
The Strong Advisor Select Fund seeks capital growth. The Fund invests,
under normal conditions, in the stocks of 30 to 40 small-, medium-, and
large-capitalization companies that its managers believe have above-average
earnings growth prospects. The Fund's managers select stocks that have
attractive growth prospects (for example, companies that have the potential for
accelerated earnings growth because of management changes, new products, or
changes in the economy), accelerating sales and earnings, and positive
fundamentals (for example, companies showing a growth trend or that are
well-positioned in a growth industry). The Fund may invest up to 25% of its net
assets in foreign securities and may utilize an active trading approach. The
managers may sell a holding when the company's growth prospects become less
attractive or to take advantage of a better investment opportunity.
Growth of an Assumed $10,000 Investment+
From 12-29-00 to 6-30-03
[CHART APPEARS HERE]
Lipper
The Strong Multi-Cap
Advisor S&P 500 Growth Funds
Select Fund Index* Index*
Dec 00 $ 9,425 $ 10,000 $ 10,000
Mar 01 $ 7,549 $ 8,815 $ 7,776
Jun 01 $ 8,454 $ 9,331 $ 8,524
Sep 01 $ 6,635 $ 7,962 $ 6,273
Dec 01 $ 7,531 $ 8,812 $ 7,484
Mar 02 $ 7,191 $ 8,837 $ 7,228
Jun 02 $ 6,277 $ 7,653 $ 5,977
Sep 02 $ 5,683 $ 6,332 $ 4,958
Dec 02 $ 5,760 $ 6,866 $ 5,252
Mar 03 $ 5,694 $ 6,649 $ 5,212
Jun 03 $ 6,458 $ 7,672 $ 6,073
+ This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with a similar investment in
the S&P 500 Index ("S&P 500") and the Lipper Multi-Cap Growth 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 a loss when you sell shares. The graph and the Average Annual Total
Returns table do not reflect the deduction of taxes, if any, that a
shareholder would pay on Fund distributions or the redemption of Fund
shares. This graph is based on Class A shares only and reflects the effect
of the maximum sales charge of 5.75%; performance for other classes will
vary, due to differences in fee structures and sales charges.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
The Strong Advisor Select Fund declined modestly during the first part of the
year, as nervous investors appeared to fear a prolonged war and a drop in
economic activity. The Fund--and the markets--rebounded strongly in the second
quarter, however, as the Iraq war ended and investors anticipated an economic
recovery. For the six months, the Fund slightly outperformed its broad-based
benchmark, the S&P 500 Index.
War had significant impact on markets
One of the most significant events during the first half of 2003 was the onset
and conclusion of the war in Iraq. In the early part of the year, there was much
uncertainty as to whether the war would take place at all and, if so, how long
it might last. In such an environment, business leaders were unwilling to make
significant capital expenditures or to hire new employees. As a result, the
entire economy was in a holding pattern until the main thrust of the conflict
ended in mid-April.
When the war concluded, consumer sentiment soared upward and the market
experienced an increase in speculative activity, with market participants
demonstrating a preference for riskier companies in the biotech, Internet,
communication, technology, and cyclical sectors. As May progressed, however,
actual evidence of an improving economy failed to materialize. In response,
interest rates began to fall, which further fueled investor speculation,
increasing demand for interest rate-sensitive and highly leveraged companies.
16
Extensive research drives stock selection
Through the first half of 2003, we increased exposure to sectors that we
believed would perform well in anticipation of an economic recovery and reduced
exposure to sectors that were more defensive in nature. Specifically, we
increased our weighting of technology, industrials, and consumer discretionary
stocks--particularly media--and decreased our weighting of healthcare-related
stocks relative to the Russell 1000(R) Growth Index.
Our continued focus on identifying attractive opportunities through extensive
bottom-up research has benefited the Fund significantly so far this year.
Although we reduced the Fund's overall exposure to healthcare stocks, we did
maintain a significant position in a large health-benefits provider that proved
to be a standout performer over the past six months. It now appears poised to
improve its competitive position and profitability even further. Our research
into a leading Internet and media company suggested to us that investors were
overlooking the company's potential to accelerate earnings by adding subscribers
for higher-end services and cutting costs aggressively.
Other meaningful, positive contributors to the Fund's performance came from the
technology and biotechnology areas.
With the exception of the company discussed earlier, our healthcare exposure
hurt the Fund's performance over the period. A major hospital company in the
portfolio announced it would not meet its March earnings targets. Because we
were concerned about the long-term prognosis for the company, we sold the stock.
Our outlook for the months ahead
The strongest performers so far in 2003 have been those stocks that
underperformed the most during 2001 and 2002. Much of the optimism for an
economic recovery--and an improvement in these companies' earnings--rests on the
assumption that fiscal and monetary policies will be successful in stimulating
capital spending and increasing earnings growth.
From a macro perspective, we believe the backdrop for economic growth and the
resumption of business spending will likely remain challenging due to low
interest rates and an ample supply of capital chasing a limited number of
investment opportunities. However, it appears there are pockets of significant
earnings growth materializing as the result of technological innovations,
rationalization of cost structures, and industry consolidation.
Thus, we believe that the market will become increasingly selective, with
outperformance being driven primarily by sectors offering meaningful innovation
and by industries that have consolidated and restructured. We expect the best
opportunities to be found in select technology, energy, industrial, and consumer
stocks. With the many changes taking place across many industries in the U.S.
economy, we believe this may be one of the most exciting times for the stock
market in several years.
We thank you for your investment with the Strong Advisor Select Fund.
Thomas J. Pence
Portfolio Co-Manager
Erik J. Voss
Portfolio Co-Manager
Average Annual Total Returns
As of 6-30-03
Class A/1/, /2/
- ----------------------------------------
1-year -3.08%
Since Fund Inception -16.04%
(12-29-00)
Class B/1/, /2/
- ----------------------------------------
1-year -3.15%
Since Fund Inception -16.75%
(12-29-00)
Class C/1/, /2/
- ----------------------------------------
1-year 1.16%
Since Fund Inception -14.63%
(12-29-00)
Equity funds are volatile investments and should only be considered for
long-term goals.
/1/ From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
The Fund is nondiversified, meaning it may concentrate its assets in fewer
individual holdings than a diversified fund. Therefore, the Fund is more
exposed to individual stock volatility and market pressure than a fully
diversified fund.
/2/ Load-adjusted performance reflects the effect of the maximum sales charge
of 5.75% for Class A, the applicable contingent deferred sales charge of
5.00% in year 1 and eliminated after year 6 for Class B, and the applicable
contingent deferred sales charge of 1.00% and eliminated after 12 months
for Class C.
* The S&P 500 Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market value weighted index
(stock price times number of shares outstanding), with each stock's weight
in the Index proportionate to its market value. The Lipper Multi-Cap Growth
Funds Index is the average of the 30 largest funds in the Lipper Multi-Cap
Growth Funds Category. Source of the S&P index data is Standard & Poor's
Micropal. Source of the Lipper index data is Lipper Inc.
17
Strong Advisor Technology Fund
- --------------------------------------------------------------------------------
Your Fund's Approach
The Strong Advisor Technology Fund seeks capital growth. The Fund invests, under
normal conditions, at least 80% of its net assets in stocks of companies of any
size that derive at least 50% of their revenues, expenses, or profits from
producing, developing, selling, using, or distributing technology products or
services. The Fund's portfolio will likely include stocks from the following
areas: computer software and hardware, semiconductor, media, biotechnology,
healthcare, communications, electronics, defense, and aerospace. To select
stocks for the Fund, the manager generally looks for several characteristics,
including strong revenue growth, overall financial strength, competitive
advantages (for example, dominant market share), and effective management (for
example, high return on invested capital). The Fund may utilize an active
trading approach. The manager may sell a holding when its fundamental qualities
deteriorate.
Growth of an Assumed $10,000 Investment+
From 11-30-00 to 6-30-03
[CHART APPEARS HERE]
The Strong Lipper
Advisor Science &
Technology S&P 500 Technology
Fund Index* Funds Index*
Nov 00 $ 9,425 $ 10,000 $ 10,000
Dec 00 $ 8,737 $ 10,049 $ 9,895
Mar 01 $ 6,664 $ 8,858 $ 6,878
Jun 01 $ 8,162 $ 9,376 $ 7,708
Sep 01 $ 4,694 $ 8,001 $ 4,873
Dec 01 $ 6,816 $ 8,856 $ 6,459
Mar 02 $ 6,458 $ 8,880 $ 6,000
Jun 02 $ 4,683 $ 7,691 $ 4,349
Sep 02 $ 3,399 $ 6,363 $ 3,266
Dec 02 $ 4,003 $ 6,899 $ 3,786
Mar 03 $ 4,079 $ 6,681 $ 3,776
Jun 03 $ 5,296 $ 7,710 $ 4,637
+ 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
S&P 500 Index ("S&P 500") and the Lipper Science & Technology 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. The graph and the Average Annual Total
Returns table do not reflect the deduction of taxes, if any, that a
shareholder would pay on Fund distributions or the redemption of Fund
shares. This graph is based on Class A shares only and reflects the effect
of the maximum sales charge of 5.75%; performance for other classes will
vary, due to differences in fee structures and sales charges.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
The Strong Advisor Technology Fund experienced very strong performance during
the first six months of 2003, with the bulk of its returns coming in the second
quarter. The Fund outperformed its broad-based benchmark, the S&P 500 Index, by
a wide margin. Results were particularly strong in April and May, before
trailing off in June. For the six-month period, the Fund generated a return of
32.31% as compared to the S&P 500 Index, which generated a return of 11.75% over
the same period.
Historically, technology stocks have tended to perform better between late fall
and late spring, a period that encompasses the increasingly important
fourth-quarter consumer electronics selling season. This year that strength has
extended beyond the normal time period. We believe this is probably the result
of investor optimism that the tech sector may be emerging from its prolonged,
three-year period of severe underperformance.
Technology stocks were strong in the second quarter
After a slow first quarter, technology stocks, along with much of the rest of
the market, began to rally significantly in early April. This upward trend
appeared to reflect investors' optimism that the resolution of the Iraq conflict
would eventually lead to an upturn in business spending and a stronger economy.
The U.S. economy has, however, continued to perform below consensus
expectations, staying in a low- to no-growth pattern. At the same time, European
economies have weakened, and Asian economies have also been experiencing lower
growth rates.
18
The sluggish world economy has created an environment of substantial excess
capacity, and record low interest rates prevail throughout the world. It is
against this background that national political leaders have taken action,
enacting stimulative tax policies aimed at expanding overall consumer and
business spending. The recently passed U.S. tax-cutting measure appears likely
to be followed by Germany shortly. Other countries are expected to follow this
lead.
Overall, stock market participants appear to be optimistic that these stimulus
efforts will lead to a resumption in world economic growth, which should in turn
produce higher corporate earnings and higher stock prices. Should this scenario
come to fruition, technology stocks could be poised for further improvement, as
this sector has traditionally performed the best during periods of rapid
economic expansion.
Seeking out emerging leaders
Over the six months, we continued with the Fund's strategy of identifying and
investing in high-growth technology stocks in leading-edge areas of the
industry. Most of the stocks that fall into this category are those of smaller,
less-capitalized companies. But virtually all of them also share the qualities
of being leaders in their respective industries, having strong management teams,
and being self-financed.
In poor market environments, even good companies are sometimes ignored by
investors--but when the market turns positive, these companies can benefit
strongly. Thus, some of the stocks in our portfolio were able to achieve
extraordinary returns during the period.
Semiconductors and semiconductor equipment remained our largest subsector in the
portfolio. We took advantage of the strong market environment to reduce our
holdings in the IT software industry, which is increasingly mature. We believe
the growth prospects for this subsector of the market have diminished
considerably.
The Fund's allocations to the biotechnology and medical technology areas
increased sharply. We placed particular emphasis on companies involved in
bio-catalytic processing and genetic molecule testing. In our view, these
companies will be among the first to produce significant sales and earnings from
the biotech revolution, because they have a shorter approval process as compared
to human drug trials.
Because of the sharp price appreciation among many technology stocks, a number
of our holdings reached their valuation targets during the period. As a result,
we have sold these holdings, increasing the Fund's turnover rate substantially.
Fortunately, we have been able to identify additional companies that meet our
investment criteria and remain at reasonable valuations. Should current market
conditions persist, we anticipate that the turnover rate could remain high.
The prospects for technology stocks
In our view, the outlook for technology investing remains good, based on the
assumption that a world economic recovery is forthcoming. Despite the strong
price advances recorded so far this year, valuation parameters among many stocks
do not yet appear to be excessive. This is because the rally started from the
very low valuation levels reached after almost three years of steep declines in
technology stocks. We believe we are able to continue to identify leading-edge
technology companies with strong management teams and excellent prospects for
future growth. We will continue to carefully monitor trends in the overall
economy and the technology sector.
Thank you for your investment in the Strong Advisor Technology Fund.
James B. Burkart
Portfolio Manager
Average Annual Total Returns
As of 6-30-03
Class A/1/, /2/
- ----------------------------------------
1-year 6.65%
Since Fund Inception -21.83%
(11-30-00)
Class B/1/, /2/
- ----------------------------------------
1-year 8.09%
Since Fund Inception -22.73%
(11-30-00)
Class C/1/, /2/
- ----------------------------------------
1-year 12.11%
Since Fund Inception -20.51%
(11-30-00)
Equity funds are volatile investments and should only be considered for
long-term goals.
/1/ From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
The Fund concentrates its assets in the technology market sector. As a
result, the Fund's shares are likely to fluctuate in value more than those
of a fund investing in a broader range of securities.
/2/ Load-adjusted performance reflects the effect of the maximum sales charge
of 5.75% for Class A, the applicable contingent deferred sales charge of
5.00% in year 1 and eliminated after year 6 for Class B, and the applicable
contingent deferred sales charge of 1.00% and eliminated after 12 months
for Class C.
* The S&P 500 Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market value weighted index
(stock price times number of shares outstanding), with each stock's weight
in the Index proportionate to its market value. The Lipper Science and
Technology Funds Index is the average of the 30 largest funds in the Lipper
Science and Technology Funds Category. Source of the S&P index data is
Standard & Poor's Micropal. Source of the Lipper index data is Lipper
Inc.
19
Strong Advisor U.S. Small/Mid Cap Growth Fund
- --------------------------------------------------------------------------------
Your Fund's Approach
The Strong Advisor U.S. Small/Mid Cap Growth Fund seeks capital growth. The Fund
invests, under normal conditions, at least 80% of its net assets in stocks of
small- and medium-capitalization U.S. companies that the Fund's manager believes
have favorable prospects for growth of earnings and capital appreciation. The
Fund defines "small-capitalization companies" and "medium-capitalization
companies" as companies with a market capitalization substantially similar to
that of companies in the Russell 2500(TM) Index and Russell Midcap(R) Index,
respectively, at the time of investment. To identify these companies, the
manager looks for several characteristics, including strong revenue growth, high
return on invested capital, overall financial strength, competitive advantages,
reasonable current stock price, experienced management, and competence in
research, development, and marketing. If there is a change in the company's
growth prospects or a deterioration in the company's fundamental qualities, the
manager may sell that company's stock.
Growth of an Assumed $10,000 Investment+
From 3-28-02 to 6-30-03
[CHART APPEARS HERE]
The Strong
Advisor Lipper
U.S. Small/ Russell Small-Cap
Mid Cap Midcap(R) Growth
Growth Fund Index* Funds Index*
Mar 02 $ 9,425 $ 9,806 $ 9,736
Jun 02 $ 8,106 $ 9,045 $ 8,651
Sep 02 $ 6,795 $ 7,450 $ 6,964
Dec 02 $ 6,730 $ 8,040 $ 7,343
Mar 03 $ 6,503 $ 7,850 $ 7,070
Jun 03 $ 8,539 $ 9,284 $ 8,720
+ 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
Russell Midcap(R) Index and the Lipper Small-Cap Growth 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 of the Fund vary, and you
may have a gain or loss when you sell shares. The graph and the Total
Returns table do not reflect the deduction of taxes, if any, that a
shareholder would pay on Fund distributions or the redemption of Fund
shares. This graph is based on Class A shares only and reflects the effect
of the maximum sales charge of 5.75%; performance for other classes will
vary, due to differences in fee structures and sales charges.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
Over the six months ended June 30, 2003, the Strong Advisor U.S. Small/Mid Cap
Growth Fund outperformed its broad-based benchmark, the Russell Midcap Index.
Volatility prevailed in the year's first quarter, as daily mood swings over the
impending and then progressive war in Iraq overshadowed the markets. In the
second quarter, as the war concluded, the market began to rally. Consumer
sentiment rebounded from very depressed levels, and capital spending numbers are
beginning to improve after years of very poor results. These factors all
contributed to a strong second quarter for the Fund.
Market turned in the second quarter
The war in Iraq was likely the most important event in the first half of 2003.
As consumer and business confidence plummeted in anticipation of the war, equity
markets languished. In this choppy environment, the market's direction was
dictated more by emotions than fundamentals.
With the quick resolution of the war in the second quarter, the markets began to
rebound, as investors turned their focus to the prospects for economic recovery.
The Federal Reserve's interest rate cuts, coupled with aggressive fiscal
stimulus in the form of tax reductions, sparked investors' confidence in an
improving economy and helped to drive the markets strongly upward.
20
Over the first half of 2003, we saw a continuation of the yearlong trend of
growth stocks outperforming their value-oriented counterparts.
Preparing for economic recovery
In November 2002, we repositioned the Fund to benefit from an environment of
improving business conditions and increasing consumer confidence. We anticipated
that the Federal Reserve would continue its efforts to stimulate the economy in
2003, as the Fed signaled concerns about deflation occurring in the United
States. Given the economy's overall weakness in the first quarter, however, this
positioning hurt our performance in the year's early months. In the second
quarter, however, as the economy showed signs of improvement and the markets
moved upward, our strategy had positive impact on Fund returns.
Given our economic outlook, we added to the Fund's positions in those sectors
that have traditionally done well coming out of slow economic periods. These
include truckers, freight forwarders, retailers, and technology. We also began
to add to our position in the energy sector. After three years with almost no
drilling activity, the numbers of active rigs are beginning to move up. Further,
we believe that given the very tight current supply situation for natural gas, a
new production cycle for that commodity may be beginning.
We reduced our holdings in some of the more defensive stocks in our portfolio.
These positions were beneficial in more uncertain times, but such companies
historically have not participated as strongly in an economic recovery.
Our outlook for the months ahead
As the U.S. economy moves more decisively toward recovery, we believe that
corporate profits will exceed expectations over the remainder of 2003. The
improving economy, along with low interest rates, low inflation, and large
stockpiles of cash sitting on the investment sidelines, could all be positive
for the equity markets in general and particularly for smaller-cap growth
stocks. In addition, we are just about one year into a cycle of growth stocks
outperforming value--and these cycles have normally lasted three to five years.
We thus believe that there is potential for the environment for growth investing
to remain favorable for some time.
We thank you for your investment in the Strong Advisor U.S. Small/Mid Cap Growth
Fund.
Thomas L. Press
Portfolio Manager
Average Annual Total Returns
As of 6-30-03
Class A/1/, /2/
- ----------------------------------------
1-year -0.66%
Since Fund Inception -11.80%
(3-28-02)
Class B/1/, /2/
- ----------------------------------------
1-year 0.35%
Since Fund Inception -10.81%
(3-28-02)
Class C/1/, /2/
- ----------------------------------------
1-year 4.47%
Since Fund Inception -7.47%
(3-28-02)
Equity funds are volatile investments and should only be considered for
long-term goals.
/1/ From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
/2/ Load-adjusted performance reflects the effect of the maximum sales charge
of 5.75% for Class A, the applicable contingent sales charge of 5.00% in
year 1 and eliminated after year 6 for Class B, and the applicable
contingent deferred sales charge of 1.00% and eliminated after 12 months
for Class C.
Because smaller companies often have narrower markets and limited financial
resources, investments in theses stocks present more risk than investments
in those of larger, more established companies.
* The Russell Midcap(R) Index measures the performance of the 800 smallest
companies in the Russell 1000 Index, which represent approximately 26% of
the total market capitalization of the Russell 1000 Index. The Lipper
Small-Cap Growth Funds Index is the average of the 30 largest funds in the
Lipper Small-Cap Growth Funds Category. Source of the Russell index data is
Standard & Poor's Micropal. Source of the Lipper index data is Lipper Inc.
21
Strong Advisor Utilities and Energy Fund
- --------------------------------------------------------------------------------
Your Fund's Approach
The Strong Advisor Utilities and Energy Fund seeks total return by investing for
capital growth and income. The Fund invests, under normal conditions, at least
80% of its net assets in the stocks of U.S. public utility companies and energy
companies that pay current dividends and whose earnings are expected to improve.
These include companies of any size that provide products and services related
to electric power, communications, gas, and water, as well as companies involved
in the discovery, development, production, generation, transmission, refinement,
measurement, trading, marketing, or distribution of energy. The Fund considers a
company to be in the utilities or energy sector if at least 50% of the company's
revenues, expenses, or profits are derived from its utilities or energy
activities. In addition, the Fund may invest in derivative securities for
nonspeculative purposes (e.g., to manage investment risk, for liquidity, or to
enhance the Fund's return). The managers may sell a holding if its prospects for
growth and income decline or when the managers deem it to be an unattractive
investment.
Growth of an Assumed $10,000 Investment+
From 7-31-02 to 6-30-03
[CHART APPEARS HERE]
The Strong
Advisor
Utilities Lipper
and Energy S&P 500 Utility
Fund Index* Funds Index*
Jul 02 $ 9,425 $ 10,000 $ 10,000
Aug 02 $ 9,595 $ 10,065 $ 10,218
Sep 02 $ 8,413 $ 8,973 $ 9,288
Oct 02 $ 8,281 $ 9,762 $ 9,694
Nov 02 $ 8,441 $ 10,336 $ 10,068
Dec 02 $ 8,557 $ 9,729 $ 10,161
Jan 03 $ 8,263 $ 9,474 $ 9,855
Feb 03 $ 7,997 $ 9,332 $ 9,524
Mar 03 $ 8,241 $ 9,422 $ 9,735
Apr 03 $ 8,612 $ 10,198 $ 10,398
May 03 $ 9,308 $ 10,735 $ 11,258
Jun 03 $ 9,394 $ 10,872 $ 11,411
+ 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
S&P 500 Index ("S&P 500") and the Lipper Utility 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. The graph and the Average Annual Total Returns table do not
reflect the deduction of taxes, if any, that a shareholder would pay on
Fund distributions or the redemption of Fund shares. This graph is based on
Class A shares only and reflects the effect of the maximum sales charge of
5.75%; performance for other classes will vary, due to differences in fee
structures and sales charges.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
The Strong Advisor Utilities and Energy Fund posted positive returns during the
first six months of 2003. Performance was weaker during the first quarter as
compared to the second quarter. During the second quarter, performance was
stronger, but the Fund slightly lagged the S&P 500 Index.
A strong market recovery
While the Fund's overall performance relative to its benchmark stems primarily
from its first-quarter performance, the Fund's strong absolute performance was
largely driven by the exceptional market recovery that took place during the
second quarter of the year. Virtually all market sectors posted positive returns
during this time. However, smaller, higher-growth stocks--rather than the
larger, more stable dividend-paying companies this Fund emphasizes--experienced
the strongest second-quarter performance.
The performance of many of the stocks in the Fund's portfolio was aided by the
passage in May of legislation that reduces the amount of tax that investors must
pay on dividends they receive. The utility and energy stocks in the portfolio
are above-average dividend payers; central to our investment strategy is seeking
out companies that not only pay healthy dividends but also have the resources to
increase those payouts over time.
22
Another factor in the Fund's positive performance was a general perception that
electric utility companies were beginning to recover from a series of challenges
that began with the Enron debacle. This changing sentiment helped to boost the
prices of many stocks in the sector.
Keeping a consistent investment strategy
Our overall investment strategy did not change over the six months. As noted
before, we continue to emphasize large-capitalization utility and energy
companies that pay dividends and have the potential to increase them.
We did, however, make some changes among our allocations to individual sectors.
The most significant of these shifts was our reduction of the Fund's position in
natural-gas-related stocks and our increased exposure to energy companies. This
change had a negative effect on the Fund returns during this period, but we
believe it may be advantageous in coming months.
Despite the change in some sector allocations, there was little change in our
major positions in individual companies.
A positive long-term outlook
We are optimistic about the overall outlook for energy and utilities stocks. In
the short term, however, we have some concern that weather-related factors could
cause earnings for the second quarter of 2003 to compare unfavorably with those
for the same period in 2002. This could have negative short-term impact on some
of the companies in our portfolio.
For the longer term, though, we are encouraged by a number of positive factors
for the companies and industries in which we invest. Among these are stronger
balance sheets, improved cash flows, and the recent favorable tax legislation.
Given the recent tax change, we anticipate seeing a larger number of companies
move to increase their dividends to shareholders. In addition to the obvious
immediate benefit to shareholders, such steps would serve to further enhance the
attractiveness of these stocks to investors.
We thank you for your investment in the Strong Advisor Utilities and Energy
Fund.
William Ferer
Portfolio Co-Manager
Mark Luftig
Portfolio Co-Manager
William H. Reaves
Portfolio Co-Manager
Ronald Sorenson
Portfolio Co-Manager
Total Returns/2/
As of 6-30-03
Class A/1/, /3/
- ----------------------------------------
Since Fund Inception -6.06%
(7-31-02)
Class B/1/, /3/
- ----------------------------------------
Since Fund Inception -5.82%
(7-31-02)
Class C/1/, /3/
- ----------------------------------------
Since Fund Inception -1.84%
(7-31-02)
Equity funds are volatile investments and should only be considered for
long-term goals.
/1/ From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
The Fund concentrates its assets in the utilities and energy sectors. As a
result, the Fund's shares are likely to fluctuate in value more than those
of a Fund investing in a broader range of securities.
A Fund's performance, especially for very short time periods, should not be
the sole factor in making your investment decision.
/2/ Total return measures change in the value of an investment in the Fund
assuming reinvestment of dividends and capital gains. Total return reflects
aggregate change and is not annualized.
/3/ Load-adjusted performance reflects the effect of the maximum sales charge
of 5.75% for Class A, the applicable contingent deferred sales charge of
5.00% in year 1 and eliminated after year 6 for Class B, and the applicable
contingent deferred sales charge of 1.00% and eliminated after 12 months
for Class C.
* The S&P 500 Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market value weighted index
(stock price times number of shares outstanding), with each stock's weight
in the Index proportionate to its market value. The Lipper Utility Funds
Index is the average of the 30 largest funds in the Lipper Utility Funds
Category. Source of the S&P 500 index data is Standard & Poor's Micropal.
Source of the Lipper index data is Lipper Inc.
23
Strong Advisor Large Company Core Fund
================================================================================
Your Fund's Approach
The Strong Advisor Large Company Core Fund seeks total return by investing for
both income and capital growth. The Fund invests, under normal conditions, at
least 80% of its net assets in securities of approximately 50
large-capitalization companies, which offer the potential for capital growth or
which are believed to be undervalued relative to the market based on earnings,
cash flow, or asset value, consisting primarily of income-producing equity
securities. Large-capitalization companies are defined as those companies with a
market capitalization substantially similar to that of companies in the S&P 500
Composite Stock Price Index (S&P 500 Index) at the time of investment. To select
investments, the managers emphasize capital appreciation and current yield and
may invest in convertible securities of any quality to generate higher income.
In addition, the Fund generally seeks to allocate its assets in approximately
the same proportion as each of the sector allocations in the S&P 500 Index. In
addition, the Fund may utilize an active trading approach. The managers may
choose to sell a holding when it no longer offers attractive growth prospects or
appears to be overvalued relative to the market, or to take advantage of a
better investment opportunity, while also maintaining the portfolio's
composition at approximately 50 securities.
Growth of an Assumed $10,000 Investment+
From 11-3-97 to 6-30-03
[CHART APPEARS HERE]
Strong
Advisor Lipper
Large Large-Cap
Company S&P 500 Core
Core Fund Index* Funds Index*
Oct 97 $ 9,425 $ 10,000 $ 10,000
Dec 97 $ 9,707 $ 10,366 $ 10,481
Jun 98 $ 10,543 $ 12,201 $ 12,372
Dec 98 $ 10,860 $ 13,328 $ 13,304
Jun 99 $ 11,868 $ 14,978 $ 14,649
Dec 99 $ 13,558 $ 16,132 $ 15,878
Jun 00 $ 14,408 $ 16,064 $ 16,178
Dec 00 $ 13,359 $ 14,665 $ 14,708
Jun 01 $ 12,289 $ 13,683 $ 13,562
Dec 01 $ 11,927 $ 12,923 $ 12,821
Jun 02 $ 10,811 $ 11,224 $ 11,236
Dec 02 $ 10,205 $ 10,068 $ 10,098
Jun 03 $ 11,200 $ 11,251 $ 11,123
+ 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
S&P 500 Index ("S&P 500") and the Lipper Large-Cap Core 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. The graph and the Average Annual Total
Returns table do not reflect the deduction of taxes, if any, that a
shareholder would pay on Fund distributions or the redemption of Fund
shares. This graph is based on Class A shares only and reflects the effect
of the maximum sales charge of 5.75%; performance for other classes will
vary, due to differences in fee structures and sales charges.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
The Strong Advisor Large Company Core Fund began the year slightly behind its
broad-based benchmark, the S&P 500 Index, as lower-quality stocks outperformed
higher-quality issues. As war with Iraq loomed on the horizon, however,
investors sought more conservative investments, allowing the Fund and its
higher-quality names to outperform. As a result, the Fund finished the first
quarter slightly ahead of its broad-based benchmark.
In the second quarter, however, as the war came to a quick resolution and
investors gained confidence in the prospects for economic recovery, stocks
staged a powerful rally, with riskier stocks once again taking the lead. This
left our returns moderately behind those of our broad-based benchmark for the
six months. All in all, it was a volatile but positive first half of the year.
An eventful six months
Three significant events took place during the first six months of 2003 that
were all positive for the stock market. First, the war with Iraq came to a
rather quick resolution; second, the Fed made a huge injection of liquidity into
the capital markets as it continued to battle deflation; and third, new tax
legislation was enacted that greatly benefits equity ownership. These were
clearly near-term positive events for the stock market and the Fund, but as is
so often the case, not all stocks react the same way at the same time.
The most immediate and dramatic beneficiaries of the Fed's action were all of
the companies that appeared to be priced for extinction. These low-quality/
low-priced stocks received a pardon of sorts, moving off of death row and
experiencing dramatic upward moves as it became obvious that they were not
24
going out of business--at least not yet. More volatile stocks, such as those in
the technology sector, did very well, as did some high-dividend payers including
companies in the utilities and telecommunications sectors. The Fund's
higher-quality orientation has served it very well over the past couple of
years, but during this lower-quality rally, we have added some names that are
better-positioned to participate in today's liquidity-driven environment.
A disciplined investment approach
We believe that over time, the markets are very efficient allocators of capital.
That is, the best companies run by the best people with the best returns on
capital will eventually attract the capital. But in the real world, there are
also short-term periods of inefficiency. With this in mind, we have adopted a
very disciplined process to manage money on a year-to-year basis.
First, under normal market conditions, we keep the portfolio very nearly fully
invested; second, we keep our allocation to market sectors in line with those of
our benchmark; and third, we focus the bulk of our energies on stock-picking. In
selecting stocks, we look at the long term--that is, identifying stocks that
will attract capital over the long run. We also look at stocks more likely to
benefit over the short term--those that are attracting capital today.
Sometimes, the long-run and short-run stocks are one and the same, but more
often than not, there are differences. Clearly this year so far is shaping up in
the latter profile, and during the first half of the year, we made some changes
to the portfolio to participate in the lower-quality rally. Of course, we also
kept significant positions in higher-quality companies more likely to perform
well in the long run.
Our outlook
Although the economy is still sluggish, and geopolitical risks remain, for the
time being it appears that liquidity will continue to allow the market to rally.
The old Wall Street adage "Don't fight the Fed, and don't fight the tape"
appears to be holding true--especially when faced, as we are now, with massive
deficit spending, tax reductions, and a President campaigning for reelection. At
the moment, it appears that the direction of least resistance may be upward.
Thank you for your investment in the Strong Advisor Large Company Core Fund.
Christopher H. Wiles
Portfolio Co-Manager
Lawrence E. Eakin, Jr.
Portfolio Co-Manager
Average Annual Total Returns
As of 6-30-03
Class A/1/, /2/, /3/, /4/
- ----------------------------------------
1-year/3/ -3.33%
3-year -9.85%
5-year 0.02%
Since Fund Inception 2.02%
(11-3-97)
Class B/1/, /2/, /3/
- ----------------------------------------
1-year -2.10%
3-year -10.51%
5-year -0.13%
Since Fund Inception 1.96%
(11-3-97)
Class C/1/, /2/, /3/
- ----------------------------------------
1-year 1.92%
3-year -8.87%
5-year 0.27%
Since Fund Inception 2.13%
(11-3-97)
Class K/1/, /3/
- ----------------------------------------
1-year 4.41%
3-year -7.82%
5-year 1.37%
Since Fund Inception 3.24%
(11-3-97)
Equity funds are volatile investments and should only be considered for
long-term goals.
/1/ From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
/2/ Load-adjusted performance reflects the effect of the maximum sales charge
of 5.75% for Class A, the applicable contingent sales charge of 5.00% in
year 1 and eliminated after year 6 for Class B, and the applicable
contingent deferred sales charge of 1.00% and eliminated after 12 months
for Class C.
/3/ Average annual total returns for Class A shares include the effect of the
maximum sales charge of 5.75%, which was first charged on 9-17-99 and are
based on the performance of the Rockhaven Fund's Class A shares (the
predecessor Fund) prior to 9-16-02. Average annual total returns for Class
B shares include the effect of the applicable contingent deferred sales
charge, which is 5.00% in year 1 and is eliminated after year 6, and are
based on the performance of the Rockhaven Fund's Class A shares (the
predecessor Fund) from inception through 9-15-02, restated to reflect the
contingent deferred sales charge and the different expenses of the Class B
shares, as applicable, and the historical performance of the Strong Advisor
Large Company Core Fund's Class A shares from 9-16-02 to 9-30-02. Average
annual total returns for Class C shares include the effect of the
applicable contingent deferred sales charge, which is 1.00%, and is
eliminated after 12 months and are based on the performance of the
Rockhaven Fund's Class A shares (the predecessor Fund) from inception
through 9-15-02, restated to reflect the contingent deferred sales charge
and the different expenses of the Class C shares, as applicable, and the
historical performance of the Strong Advisor Large Company Core Fund's
Class A shares from 9-16-02 to 9-30-02. The performance of the Class K
shares is based on the performance of the Rockhaven Fund's Class A shares
(the predecessor Fund) from inception through 9-15-02, and the historical
performance of the Strong Advisor Large Company Core Fund's Class A shares
from 9-16-02 to 9-30-02, and does not reflect the Fund's maximum sales
charge of 5.75%, which was charged from 9-17-99 through 9-30-02. Please
consult a prospectus for information about all share classes.
/4/ Average annual total return for Class A shares includes a 1.00% redemption
fee (as a percentage of redemption proceeds) imposed on redemptions made
within 12 months of purchase.
* The S&P 500 Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market value weighted index
(stock price times number of shares outstanding), with each stock's weight
in the Index proportionate to its market value. The Lipper Large-Cap Core
Funds Index is the average of the 30 largest funds in the Lipper Large-Cap
Core Funds Category. Source of the S&P 500 index data is Standard & Poor's
Micropal. Source of the Lipper index data is Lipper Inc.
25
SCHEDULES OF INVESTMENTS IN SECURITIES June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
STRONG ADVISOR COMMON STOCK FUND
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Common Stocks 89.6%
Agricultural Operations 0.1%
Monsanto Company 35,000 $ 757,400
Auto Manufacturers - Foreign 1.3%
Bayerische Motoren Werke AG 250,000 9,587,751
Honda Motor Company, Ltd. 295,000 11,209,704
---------------
20,797,455
Auto/Truck - Original Equipment 0.9%
Lear Corporation (b) 310,000 14,266,200
Banks - Money Center 1.1%
The Bank of New York Company, Inc. 640,000 18,400,000
Banks - Super Regional 1.0%
Fifth Third Bancorp 275,000 15,768,500
Banks - West/Southwest 1.2%
City National Corporation 425,000 18,938,000
Beverages - Alcoholic 1.1%
Adolph Coors Company Class B 370,000 18,122,600
Building - Cement/Concrete/Aggregate 1.0%
Martin Marietta Materials, Inc. 490,000 16,468,900
Building - Construction
Products/Miscellaneous 0.0%
The Stanley Works 20,000 552,000
Building - Heavy Construction 1.1%
Jacobs Engineering Group, Inc. (b) (d) 420,000 17,703,000
Chemicals - Basic 0.1%
PPG Industries, Inc. 10,000 507,400
Rohm and Haas Company 20,000 620,600
---------------
1,128,000
Chemicals - Fertilizers 0.2%
IMC Global, Inc. 571,000 3,831,410
Chemicals - Specialty 1.2%
Lonza Group AG 425,000 19,496,855
Praxair, Inc. 10,000 601,000
---------------
20,097,855
Commercial - Leasing Companies 1.3%
Ryder Systems, Inc. 800,000 20,496,000
Commercial Services - Business
Services 1.3%
IMS Health, Inc. 1,200,000 21,588,000
Commercial Services - Miscellaneous 0.2%
D&B Corporation 70,700 2,905,770
Commercial Services - Staffing 0.1%
Manpower, Inc. 20,000 741,800
Computer - Graphics 2.2%
Mentor Graphics Corporation (b) 2,450,000 35,476,000
Computer - Integrated Systems 2.5%
Diebold, Inc. 490,000 21,192,500
Symbol Technologies, Inc. 1,525,000 19,840,250
---------------
41,032,750
Computer - Services 2.7%
BearingPoint, Inc. (b) 2,570,000 24,800,500
Unisys Corporation (b) 1,600,000 19,648,000
---------------
44,448,500
Computer Software - Desktop 1.3%
Red Hat, Inc. (b) 2,800,000 21,196,000
Computer Software - Enterprise 0.5%
Business Objects SA Sponsored ADR (b) 405,000 8,889,750
Containers 1.2%
Pactiv Corporation (b) 920,000 18,133,200
Sealed Air Corporation (b) 15,000 714,900
---------------
18,848,100
Cosmetics - Personal Care 1.0%
International Flavors & Fragrances 535,000 17,082,550
Diversified Operations 2.7%
Carlisle Companies, Inc. 450,000 18,972,000
ITT Industries, Inc. 10,000 654,600
Olin Corporation 35,000 598,500
SPX Corporation (b) 520,000 22,911,200
Textron, Inc. 15,000 585,300
---------------
43,721,600
Electrical - Control Instruments 0.5%
Roper Industries, Inc. 238,100 8,857,320
Electronics - Semiconductor Equipment 0.3%
LTX Corporation (b) 618,000 5,327,160
Electronics - Semiconductor
Manufacturing 1.2%
Fairchild Semiconductor Corporation Class A (b) 1,465,000 18,737,350
Electronics Products - Miscellaneous 1.1%
Rockwell Automation, Inc. 725,000 17,284,000
Finance - Equity REIT 1.1%
Apartment Investment & Management
Company Class A 495,000 17,127,000
Finance - Investment Brokers 1.4%
Merrill Lynch & Company, Inc. 475,000 22,173,000
Finance - Publicly Traded Investment Funds -
Equity (Non 40 Act) 1.6%
Biotech Holders Trust 205,000 25,266,250
Financial Services - Miscellaneous 1.5%
The Bisys Group, Inc. (b) 1,340,000 24,615,800
Household - Appliances 1.2%
Maytag Corporation 785,000 19,169,700
Insurance - Brokers 1.2%
Arthur J. Gallagher & Company 730,000 19,856,000
26
- --------------------------------------------------------------------------------
STRONG ADVISOR COMMON STOCK FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Insurance - Life 1.2%
Lincoln National Corporation 560,000 $ 19,952,800
Insurance - Property/Casualty/Title 2.8%
MBIA, Inc. 470,000 22,912,500
Travelers Property and Casualty Corporation
Class A 1,420,000 22,578,000
---------------
45,490,500
Internet - E*Commerce 2.5%
DoubleClick, Inc. (b) 1,800,000 16,650,000
InterActiveCorp (b) 618,000 24,454,260
---------------
41,104,260
Machinery - General Industrial 0.0%
Parker-Hannifin Corporation 15,000 629,850
Media - Cable TV 4.4%
Cablevision Systems New York Group Class A (b) 1,400,000 29,064,000
Cox Communications, Inc. Class A (b) 740,000 23,606,000
General Motors Corporation Class H (b) 1,500,000 19,215,000
---------------
71,885,000
Media - Newspapers 1.1%
Dow Jones & Company, Inc. 405,000 17,427,150
Media - Radio/TV 1.6%
Liberty Media Corporation Class A (b) 2,225,000 25,721,000
Medical - Biomedical/Genetics 1.7%
Celgene Corporation (b) 885,000 26,904,000
Medical - Ethical Drugs 1.7%
Biovail Corporation International (b) 605,000 28,471,300
Medical - Health Maintenance
Organizations 1.6%
WellPoint Health Networks, Inc. (b) 315,000 26,554,500
Medical - Hospitals 0.6%
Universal Health Services, Inc. Class B (b) 260,000 10,301,200
Medical/Dental - Services 1.7%
Omnicare, Inc. 835,000 28,214,650
Medical/Dental - Supplies 2.2%
Bausch & Lomb, Inc. 465,000 17,437,500
Hillenbrand Industries, Inc. 370,000 18,666,500
---------------
36,104,000
Metal Ores - Miscellaneous 1.3%
Alcoa, Inc. 860,000 21,930,000
Metal Products - Fasteners 0.0%
Illinois Tool Works, Inc. 10,000 658,500
Oil & Gas - Drilling 2.8%
Nabors Industries, Ltd. (b) 525,000 20,763,750
Noble Corporation (b) 730,000 25,039,000
---------------
45,802,750
Oil & Gas - Machinery/Equipment 1.5%
Smith International, Inc. (b) 665,000 24,432,100
Oil & Gas - Refining/Marketing 1.3%
Valero Energy Corporation 570,000 20,708,100
Oil & Gas - United States Exploration &
Production 3.4%
Apache Corporation 390,000 25,373,400
Burlington Resources, Inc. 180,000 9,732,600
EOG Resources, Inc. 475,000 19,874,000
---------------
54,980,000
Paper & Paper Products 0.1%
Bowater, Inc. 15,000 561,750
Smurfit-Stone Container Corporation (b) 50,000 651,500
Temple-Inland, Inc. 15,000 643,650
---------------
1,856,900
Pollution Control - Services 1.2%
Republic Services, Inc. (b) 850,000 19,269,500
Retail - Department Stores 2.4%
J.C. Penney Company, Inc. 1,180,000 19,883,000
Saks, Inc. (b) 2,000,000 19,400,000
---------------
39,283,000
Retail - Home Furnishings 1.3%
Williams-Sonoma, Inc. (b) 730,000 21,316,000
Retail - Miscellaneous/Diversified 2.7%
Barnes & Noble, Inc. (b) 985,000 22,704,250
Toys 'R' Us, Inc. (b) 1,765,000 21,391,800
---------------
44,096,050
Retail - Restaurants 1.2%
Outback Steakhouse, Inc. 500,000 19,500,000
Retail - Super/Mini Markets 1.3%
The Kroger Company (b) 1,280,000 21,350,400
Retail/Wholesale - Computer/Cellular 1.2%
Tech Data Corporation (b) 720,000 19,231,200
Retail/Wholesale - Office Supplies 1.4%
Office Depot, Inc. (b) 1,600,000 23,216,000
Telecommunications - Cellular 2.6%
Nextel Communications, Inc. Class A (b) 1,100,000 19,888,000
Sprint Corporation - PCS Group (b) 4,000,000 23,000,000
---------------
42,888,000
Transportation - Airline 1.3%
Continental Airlines, Inc. Class B (b) 1,380,000 20,658,600
Transportation - Rail 0.0%
Burlington Northern Santa Fe Corporation 20,000 568,800
Trucks & Parts - Heavy Duty 0.0%
PACCAR, Inc. 10,000 675,600
Utility - Electric Power 1.1%
Reliant Resources, Inc. (b) 2,900,000 17,777,000
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $1,210,908,321) 1,460,630,430
- -------------------------------------------------------------------------------
Convertible Preferred Stocks 0.1%
Chemicals - Fertilizers
IMC Global, Inc. 7.50% 49,000 2,557,310
- -------------------------------------------------------------------------------
Total Convertible Preferred Stocks
(Cost $2,502,480) 2,557,310
- -------------------------------------------------------------------------------
27
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
STRONG ADVISOR COMMON STOCK FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Preferred Stocks 0.3%
Telecommunications - Cellular
Nextel Communications, Inc. 13.00%
Exchangeable, Series D 4,200 $ 4,467,750
- -------------------------------------------------------------------------------
Total Preferred Stocks (Cost $2,940,000) 4,467,750
- -------------------------------------------------------------------------------
Call Options Purchased 0.1%
PSE Technology 100 Index, Expires 7/18/03
at $491.97 (e) 267 1,919,730
- -------------------------------------------------------------------------------
Total Call Options Purchased
(Cost $1,763,001) 1,919,730
- -------------------------------------------------------------------------------
Short-Term Investments (a) 14.5%
Collateral Received for Securities
Lending (f) 4.2%
Money Market Funds 2.9%
Deutsche Daily Assets Fund - Institutional
Class 46,694,880 46,694,880
Repurchase Agreements 1.3%
Barclays Capital, Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase
proceeds $7,429,884); Collateralized by:
United States Government & Agency Issues $ 7,429,604 7,429,604
Goldman, Sachs and Company (Dated
6/30/03), 1.22%, Due 7/01/03 (Repurchase
proceeds $7,429,856); Collateralized by:
United States Government & Agency Issues 7,429,604 7,429,604
Lehman Brothers Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase proceeds
$7,429,884); Collateralized by: United
States Government & Agency Issues 7,429,604 7,429,604
---------------
22,288,812
---------------
Total Collateral Received for Securities
Lending 68,983,692
Repurchase Agreements 10.3%
ABN AMRO Inc. (Dated 6/30/03), 1.20%,
Due 7/01/03 (Repurchase proceeds
$165,405,513); Collateralized by: United
States Government & Agency Issues (c) 165,400,000 165,400,000
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds
$2,570,254); Collateralized by: United
States Government & Agency Issues (c) 2,570,200 2,570,200
---------------
Total Repurchase Agreements 167,970,200
- -------------------------------------------------------------------------------
Total Short-Term Investments
(Cost $236,953,892) 236,953,892
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $1,455,067,694) 104.6% 1,706,529,112
Other Assets and Liabilities, Net (4.6%) (75,615,703)
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 1,630,913,409
===============================================================================
- --------------------------------------------------------------------------------
WRITTEN OPTIONS ACTIVITY
- --------------------------------------------------------------------------------
Contracts Premiums
- --------------------------------------------------------------------------------
Options outstanding at beginning of period 383 $ 2,856,526
Options written during the period 383 2,526,651
Options closed (499) (3,621,778)
Options expired -- --
Options exercised -- --
------------- ---------------
Options outstanding at end of period 267 $ 1,761,399
============= ===============
WRITTEN OPTIONS DETAIL
- --------------------------------------------------------------------------------
Contracts
(100 shares Value
per contract) (Note 2)
- --------------------------------------------------------------------------------
PSE Technology 100 Index
Puts: (Strike Price is $491.97. Expiration
date is 7/18/03. Premium received is
$1,761,399.) 267 $ (9,879)
STRONG ADVISOR MID CAP GROWTH FUND
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Common Stocks 98.0%
Banks - Southeast 0.8%
First Tennessee National Corporation 17,000 $ 746,470
Beverages - Soft Drinks 0.8%
Cott Corporation (b) 37,000 765,530
Building - Resident/Commercial 6.5%
Centex Corporation 21,700 1,688,043
D.R. Horton, Inc. 47,000 1,320,700
Lennar Corporation Class A 20,000 1,430,000
NVR, Inc. (b) 3,800 1,561,800
---------------
6,000,543
Commercial Services - Schools 2.9%
Career Education Corporation (b) 21,000 1,436,820
Corinthian Colleges, Inc. (b) 26,000 1,262,820
---------------
2,699,640
Computer - Integrated Systems 0.9%
Symbol Technologies, Inc. 64,000 832,640
Computer - Local Networks 2.0%
Juniper Networks, Inc. (b) 37,000 457,690
QLogic Corporation (b) 29,000 1,401,570
---------------
1,859,260
Computer - Memory Devices 1.0%
EMC Corporation (b) 47,600 498,372
Western Digital Corporation (b) 43,000 442,900
---------------
941,272
Computer - Services 1.7%
Amdocs, Ltd. (b) 66,000 1,584,000
Computer Software -
Education/Entertainment 1.0%
Electronic Arts, Inc. (b) 13,000 961,870
28
- --------------------------------------------------------------------------------
STRONG ADVISOR MID CAP GROWTH FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Computer Software - Enterprise 3.6%
Citrix Systems, Inc. (b) 46,000 $ 936,560
Cognos, Inc. (b) 27,000 729,000
Mercury Interactive Corporation (b) 18,100 698,841
VERITAS Software Corporation (b) 34,800 997,716
---------------
3,362,117
Computer Software - Security 1.3%
Check Point Software Technologies, Ltd. (b) 39,000 762,450
VeriSign, Inc. 34,000 470,220
---------------
1,232,670
Electronics - Scientific Instruments 0.8%
PerkinElmer, Inc. 50,000 690,500
Electronics - Semiconductor Equipment 4.1%
ATI Technologies, Inc. (b) 47,000 479,400
Entegris, Inc. (b) 25,000 336,000
KLA-Tencor Corporation (b) 25,300 1,176,197
MEMC Electronic Materials, Inc. (b) 125,000 1,225,000
Novellus Systems, Inc. (b) 14,800 541,991
---------------
3,758,588
Electronics - Semiconductor
Manufacturing 4.3%
Altera Corporation (b) 22,700 372,280
Broadcom Corporation Class A (b) 33,000 822,030
Integrated Circuit Systems, Inc. (b) 24,400 766,892
Microchip Technology, Inc. 16,000 394,080
Micron Technology, Inc. (b) 61,200 711,756
National Semiconductor Corporation (b) 23,000 453,560
SanDisk Corporation (b) 11,000 443,850
---------------
3,964,448
Finance - Consumer/Commercial Loans 1.0%
Providian Financial Corporation (b) 99,200 918,592
Finance - Investment Brokers 0.9%
Legg Mason, Inc. 12,000 779,400
Finance - Investment Management 1.6%
Janus Capital Group, Inc. 30,700 503,480
T. Rowe Price Group, Inc. 25,000 943,750
---------------
1,447,230
Finance - Mortgage & Related Services 1.6%
Doral Financial Corporation 32,000 1,428,800
Finance - Publicly Traded Investment
Funds-Equity (Non 40 Act) 1.2%
Oil Service Holders Trust 6,500 390,975
Software Holders Trust 23,100 729,498
---------------
1,120,473
Financial Services - Miscellaneous 0.5%
CheckFree Corporation (b) 16,000 445,440
Household - Audio/Video 1.7%
Harman International Industries, Inc. 19,600 1,551,144
Insurance - Property/Casualty/Title 2.3%
W.R. Berkley Corporation 21,000 1,106,700
Montpelier Re Holdings, Ltd. (b) 12,500 395,000
RenaissanceRe Holdings, Ltd. 14,000 637,280
---------------
2,138,980
Internet - E*Commerce 3.2%
Amazon.com, Inc. (b) 30,400 1,109,296
Getty Images, Inc. (b) 16,000 660,800
University of Phoenix Online (b) 24,000 1,216,800
---------------
2,986,896
Internet - Internet Service
Provider/Content 1.4%
Yahoo! Inc. (b) 40,700 1,333,332
Leisure - Gaming 1.3%
International Game Technology 12,000 1,227,960
Leisure - Toys/Games/Hobby 0.4%
Leapfrog Enterprises, Inc. Class A (b) 12,000 381,720
Medical - Biomedical/Genetics 4.3%
Angiotech Pharmaceuticals, Inc. (b) 19,000 772,730
Celgene Corporation (b) 19,000 577,600
Genzyme Corporation (b) 31,300 1,308,340
Gilead Sciences, Inc. (b) 24,200 1,345,036
---------------
4,003,706
Medical - Ethical Drugs 0.6%
Allergan, Inc. 7,000 539,700
Medical - Generic Drugs 5.3%
Eon Labs, Inc. 18,000 632,700
Pharmaceutical Resources, Inc. (b) 23,000 1,119,180
Taro Pharmaceutical Industries, Ltd. (b) 28,500 1,564,080
Teva Pharmaceutical Industries, Ltd. ADR 11,000 626,230
Watson Pharmaceuticals, Inc. (b) 24,000 968,880
---------------
4,911,070
Medical - Health Maintenance
Organizations 6.5%
Aetna, Inc. 21,300 1,282,260
Anthem, Inc. (b) 16,600 1,280,690
Coventry Health Care, Inc. (b) 17,000 784,720
Mid Atlantic Medical Services, Inc. (b) 26,000 1,359,800
WellPoint Health Networks, Inc. (b) 15,300 1,289,790
---------------
5,997,260
Medical - Products 2.5%
Boston Scientific Corporation (b) 9,700 592,670
Cyberonics, Inc. (b) 32,000 688,320
Dade Behring Holdings, Inc. (b) 27,100 622,487
Edwards Lifesciences Corporation 12,000 385,680
---------------
2,289,157
Medical/Dental - Services 2.0%
AdvancePCS (b) 18,800 718,724
Caremark Rx, Inc. (b) 24,500 629,160
Quest Diagnostics, Inc. (b) 8,000 510,400
---------------
1,858,284
Metal Ores - Gold/Silver 0.8%
Newmont Mining Corporation Holding
Company 23,000 746,580
Oil & Gas - Drilling 4.7%
ENSCO International, Inc. 26,300 707,470
Grey Wolf, Inc. (b) 111,900 452,076
Nabors Industries, Ltd. (b) 38,600 1,526,630
Patterson Utility Energy, Inc. (b) 30,900 1,001,160
Precision Drilling Corporation 16,300 615,488
---------------
4,302,824
Oil & Gas - Field Services 2.4%
BJ Services Company (b) 42,700 1,595,272
Halliburton Company 28,500 655,500
---------------
2,250,772
29
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
STRONG ADVISOR MID CAP GROWTH FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Oil & Gas - Machinery/Equipment 2.0%
Smith International, Inc. (b) 51,100 $ 1,877,414
Oil & Gas - United States Exploration &
Production 2.1%
Pogo Producing Company 21,000 897,750
XTO Energy, Inc. 50,766 1,020,904
---------------
1,918,654
Retail - Apparel/Shoe 1.3%
Chicos FAS, Inc. (b) 11,000 231,550
Coach, Inc. (b) 20,000 994,800
---------------
1,226,350
Retail - Major Discount Chains 1.0%
Family Dollar Stores, Inc. 23,700 904,155
Retail - Miscellaneous/Diversified 0.9%
Michaels Stores, Inc. (b) 21,100 803,066
Retail - Restaurants 4.0%
Brinker International, Inc. (b) 33,000 1,188,660
P.F. Chang's China Bistro, Inc. (b) 10,100 497,021
Panera Bread Company Class A (b) 19,000 760,000
Ruby Tuesday, Inc. 50,000 1,236,500
---------------
3,682,181
Telecommunications - Cellular 1.2%
Nextel Communications, Inc. Class A (b) 62,000 1,120,960
Telecommunications - Equipment 7.6%
Adtran, Inc. (b) 16,000 820,640
Comverse Technology, Inc. (b) 76,300 1,146,789
Corning, Inc. (b) 110,000 812,900
JDS Uniphase Corporation (b) 246,000 863,460
Polycom, Inc. (b) 93,300 1,293,138
Scientific-Atlanta, Inc. 19,000 452,960
UTStarcom, Inc. (b) 47,000 1,671,790
---------------
7,061,677
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $75,894,659) 90,653,325
- -------------------------------------------------------------------------------
Short-Term Investments (a) 4.5%
Collateral Received for Securities
Lending (f) 2.8%
Money Market Funds 1.9%
Deutsche Daily Assets Fund - Institutional
Class 1,800,570 1,800,570
Repurchase Agreements 0.9%
Barclays Capital, Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase proceeds
$286,499); Collateralized by: United States
Government & Agency Issues $ 286,488 286,488
Goldman, Sachs and Company (Dated 6/30/03),
1.22%, Due 7/01/03 (Repurchase proceeds
$286,498); Collateralized by: United States
Government & Agency Issues 286,488 286,488
Lehman Brothers Inc. (Dated 6/30/03), 1.23%,
Due 7/01/03 (Repurchase proceeds
$286,499); Collateralized by: United States
Government & Agency Issues 286,488 286,488
---------------
859,464
---------------
Total Collateral Received for Securities
Lending 2,660,034
Repurchase Agreements 1.7%
ABN AMRO Inc. (Dated 6/30/03), 1.20%,
Due 7/01/03 (Repurchase proceeds
$500,017); Collateralized by: United
States Government & Agency Issues (c) $ 500,000 $ 500,000
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds
$1,038,322); Collateralized by: United
States Government & Agency Issues (c) 1,038,300 1,038,300
---------------
Total Repurchase Agreements 1,538,300
- -------------------------------------------------------------------------------
Total Short-Term Investments
(Cost $4,198,334) 4,198,334
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $80,092,993) 102.5% 94,851,659
Other Assets and Liabilities, Net (2.5%) (2,301,053)
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 92,550,606
===============================================================================
STRONG ADVISOR SMALL CAP VALUE FUND
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Common Stocks 90.9%
Auto/Truck - Original Equipment 1.2%
Dura Automotive Systems, Inc. (b) (d) 1,250,300 $ 12,265,443
Tower Automotive, Inc. (b) 1,641,400 6,007,524
---------------
18,272,967
Banks - Southeast 1.0%
Hibernia Corporation Class A 816,060 14,819,650
Beverages - Alcoholic 0.4%
Adolph Coors Company Class B 122,320 5,991,234
Building - Air Conditioning & Heating
Products 0.4%
York International Corporation 260,200 6,088,680
Building - Cement/Concrete/Aggregate 0.3%
U.S. Concrete, Inc. (b) 1,307,600 5,021,184
Building - Construction
Products/Miscellaneous 0.3%
Royal Group Technologies, Ltd. (b) 631,800 4,504,734
Building - Heavy Construction 2.8%
Chicago Bridge & Iron Company NV (d) 1,828,400 41,468,112
Building - Maintenance & Services 1.0%
ABM Industries, Inc. 478,310 7,365,974
Healthcare Services Group, Inc. (b) (d) 522,100 7,377,273
---------------
14,743,247
Building - Mobile/Manufacturers & RV 0.1%
Clayton Homes, Inc. 135,700 1,703,035
Building - Paint & Allied Products 0.5%
H.B. Fuller Company 335,500 7,387,710
Chemicals - Basic 1.2%
FMC Corporation (b) 770,300 17,431,889
Chemicals - Fertilizers 1.6%
Agrium, Inc. 2,235,715 24,503,437
30
- --------------------------------------------------------------------------------
STRONG ADVISOR SMALL CAP VALUE FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Chemicals - Plastics 1.6%
Intertape Polymer Group, Inc. (b) (d) 2,215,000 $ 13,179,250
PolyOne Corporation 2,520,300 11,215,335
---------------
24,394,585
Chemicals - Specialty 0.9%
OM Group, Inc. (e) 944,400 13,911,012
Commercial Services - Advertising 1.3%
R.H. Donnelley Corporation (b) (e) 551,300 20,105,911
Commercial Services - Business
Services 0.3%
US Oncology, Inc. (b) 698,400 5,161,176
Commercial Services - Miscellaneous 1.0%
Navigant Consulting, Inc. (b) 1,239,170 14,684,164
Commercial Services - Security/Safety 1.9%
Armor Holdings, Inc. (b) (e) 1,119,100 14,995,940
DHB Industries, Inc. (b) 1,508,700 6,170,583
Wackenhut Corrections Corporation (b) 564,510 7,739,432
---------------
28,905,955
Commercial Services - Staffing 1.5%
Gevity HR, Inc. 284,400 3,361,608
kforce.com, Inc. (b) (d) 1,804,685 8,716,628
MPS Group, Inc. (b) 1,392,715 9,581,879
---------------
21,660,115
Computer - Integrated Systems 0.2%
Evans & Sutherland Computer
Corporation (b) (d) 573,500 3,257,480
Computer - Local Networks 0.5%
Black Box Corporation (e) 215,900 7,815,580
Computer - Memory Devices 0.8%
Iomega Corporation (b) 1,065,610 11,295,466
Computer Software - Enterprise 1.9%
JDA Software Group, Inc. (b) (e) 782,700 8,758,413
Lightbridge, Inc. (b) (d) 1,359,600 11,910,096
OSI Systems, Inc. (b) 463,910 7,450,395
---------------
28,118,904
Computer Software - Medical 1.4%
Eclipsys Corporation (b) (e) 184,125 1,922,265
IDX Systems Corporation (b) (d) (e) 1,219,100 18,920,432
---------------
20,842,697
Containers 0.5%
Constar International, Inc. (b) (d) 941,100 7,142,949
Diversified Operations 0.8%
ALLETE, Inc. (e) 445,000 11,814,750
Electrical - Equipment 0.7%
Encore Wire Corporation (b) (d) 1,146,900 10,895,550
Electronics - Parts Distributors 0.1%
Richardson Electronics, Ltd. 260,600 2,110,860
Electronics - Semiconductor
Equipment 0.2%
Credence Systems Corporation (b) 436,200 3,694,614
Electronics - Semiconductor
Manufacturing 0.5%
Cirrus Logic, Inc. (b) 1,600,500 6,434,010
TriQuint Semiconductor, Inc. (b) 100,000 416,000
---------------
6,850,010
Electronics Products - Miscellaneous 1.8%
Celestica, Inc. (b) (e) 569,200 8,970,592
Coherent, Inc. (b) 610,900 14,618,837
Rofin-Sinar Technologies, Inc. (b) (d) 249,450 3,507,267
---------------
27,096,696
Energy - Other 0.9%
Headwaters, Inc. (b) 900,500 13,228,345
Finance - Consumer/Commercial Loans 1.1%
World Acceptance Corporation (b) (d) 959,600 15,622,288
Finance - Investment Brokers 0.4%
Labranche & Company, Inc. 284,500 5,886,305
Finance - Publicly Traded Investment
Funds - Equity 0.4%
iShares Trust Russell 2000 Index Fund 30,800 2,738,120
iShares Trust Russell 2000 Value Index Fund 20,600 2,657,400
---------------
5,395,520
Food - Miscellaneous Preparation 0.8%
Del Monte Foods Company (b) 1,372,785 12,135,420
Household - Office Furniture 0.4%
American Financial Realty Trust 406,000 6,053,460
Insurance - Accident & Health 0.7%
UnumProvident Corporation 796,600 10,682,406
Insurance - Life 0.4%
Phoenix Companies, Inc. 623,700 5,632,011
Insurance - Property/Casualty/Title 2.4%
Endurance Specialty Holdings, Ltd. 261,510 7,806,073
Mercury General Corporation 618,700 28,243,655
Vesta Insurance Group, Inc. 28,500 65,550
---------------
36,115,278
Internet - E*Commerce 0.5%
Overstock.com, Inc. (b) (d) 153,900 2,233,089
Stamps.com, Inc. (b) 1,036,900 4,977,120
---------------
7,210,209
Internet - Internet Service
Provider/Content 2.0%
EarthLink, Inc. (b) 2,775,400 21,897,906
Net2Phone, Inc. (b) (d) 1,725,500 7,471,415
---------------
29,369,321
Leisure - Services 0.9%
Pegasus Solutions, Inc. (b) (e) 797,500 12,959,375
Machinery - General Industrial 1.8%
Robbins & Myers, Inc. 355,200 6,571,200
UNOVA, Inc. (b) 1,771,100 19,659,210
---------------
26,230,410
Medical - Generic Drugs 1.1%
Andrx Group (b) (e) 840,400 16,723,960
Medical - Instruments 1.1%
Applera Corporation-Applied Biosystems
Group (e) 904,800 17,218,344
31
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
STRONG ADVISOR SMALL CAP VALUE FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Medical - Nursing Homes 2.5%
Beverly Enterprises, Inc. (b) 3,440,400 $ 12,041,400
Manor Care, Inc. (b) (e) 995,600 24,899,956
---------------
36,941,356
Medical - Outpatient/Home Care 0.5%
Gentiva Health Services, Inc. (b) 754,900 6,794,100
Medical - Products 1.4%
Allied Healthcare Products, Inc. (b) (d) 564,100 2,013,837
Discovery Partners International, Inc. (b) (d) 1,505,800 6,685,752
OraSure Technologies, Inc. (b) (e) 1,591,950 11,875,947
---------------
20,575,536
Medical/Dental - Services 0.7%
Omnicare, Inc. (e) 320,000 10,812,800
Metal Ores - Gold/Silver 8.2%
Apex Silver Mines, Ltd. (b) (d) 1,939,700 28,610,575
Glamis Gold, Ltd. (b) 2,923,800 33,535,986
Goldcorp, Inc. 1,709,500 20,514,000
Harmony Gold Mining Company, Ltd.
Sponsored ADR (e) 1,843,500 24,831,945
Meridian Gold, Inc. (b) (e) 1,289,800 14,819,802
---------------
122,312,308
Metal Ores - Miscellaneous 0.2%
Cleveland-Cliffs, Inc. (b) 156,600 2,795,310
Metal Processing & Fabrication 0.0%
Webco Industries, Inc. (b) 122,200 348,270
Oil & Gas - Drilling 3.0%
Grey Wolf, Inc. (b) 646,800 2,613,072
Helmerich & Payne, Inc. 545,180 15,919,256
Parker Drilling Company (b) 348,200 1,013,262
Pride International, Inc. (b) (e) 966,200 18,183,884
Transocean, Inc. (b) 345,900 7,599,423
---------------
45,328,897
Oil & Gas - Field Services 5.8%
BJ Services Company (b) (e) 248,500 9,283,960
Global Industries, Ltd. (b) 3,396,400 16,370,648
Key Energy Services, Inc. (b) 2,206,900 23,657,968
Newpark Resources, Inc. (b) 2,079,900 11,397,852
Oceaneering International, Inc. (b) 472,800 12,080,040
Petroleum Geo-Services ASA Sponsored ADR (b) 194,100 118,401
Petroleum Helicopters, Inc. (b) 102,080 3,220,624
Petroleum Helicopters, Inc. (non-voting) (b) 174,260 5,253,939
Willbros Group, Inc. (b) 545,200 5,664,628
---------------
87,048,060
Oil & Gas - Machinery/Equipment 1.2%
Matrix Service Company (b) (d) 437,300 7,512,814
Smith International, Inc. (b) (e) 298,500 10,966,890
---------------
18,479,704
Oil & Gas - United States Exploration &
Production 8.5%
Forest Oil Corporation (b) 1,295,700 32,547,984
Greka Energy Corporation (b) (d) 455,100 2,634,574
The Houston Exploration Company (b) 50,000 1,735,000
McMoRan Exploration Company (b) (d) (e) 853,500 9,507,990
Newfield Exploration Company (b) 237,500 8,918,125
Noble Energy, Inc. 507,300 19,175,940
PetroQuest Energy, Inc. (b) 629,300 1,478,855
Pioneer Natural Resources Company (b) 273,500 7,138,350
Range Resources Corporation (b) (d) 3,577,800 22,432,806
Remington Oil & Gas Corporation (b) 377,700 6,942,126
Stone Energy Corporation (b) 364,300 15,271,456
---------------
127,783,206
Paper & Paper Products 1.9%
Chesapeake Corporation 699,800 15,290,630
Wausau-Mosinee Paper Corporation 1,133,700 12,697,440
---------------
27,988,070
Pollution Control - Services 0.9%
Calgon Carbon Corporation (d) 2,305,090 13,254,267
Retail - Apparel/Shoe 2.2%
American Eagle Outfitters, Inc. (b) (e) 654,400 12,001,696
Foot Locker, Inc. (e) 866,400 11,479,800
Too, Inc. (b) (e) 472,700 9,572,175
---------------
33,053,671
Retail - Mail Order & Direct 0.2%
dELiA*s Corporation Class A (b) 275,000 192,500
J. Jill Group, Inc. (b) (e) 193,700 3,261,908
---------------
3,454,408
Retail - Major Discount Chains 0.3%
Shopko Stores, Inc. (b) (e) 382,480 4,972,240
Retail - Miscellaneous/Diversified 1.7%
Barbeques Galore, Ltd. Sponsored ADR (d) 423,120 1,148,771
Sharper Image Corporation (b) (d) (e) 908,600 24,777,522
---------------
25,926,293
Retail/Wholesale - Auto Parts 0.2%
The Pep Boys - Manny, Moe & Jack 192,620 2,602,296
Shoes & Related Apparel 0.6%
Wolverine World Wide, Inc. 489,900 9,435,474
Steel - Producers 3.7%
IPSCO, Inc. 1,554,600 16,634,220
Roanoke Electric Steel Corporation 385,000 2,883,650
Steel Dynamics, Inc. (b) 1,430,410 19,596,617
United States Steel Corporation (e) 1,037,600 16,985,512
---------------
56,099,999
Steel - Specialty Alloys 1.3%
Carpenter Technology Corporation 733,950 11,449,620
GrafTech International, Ltd. (b) 1,469,000 8,006,050
---------------
19,455,670
Transportation - Airline 0.5%
Linea Aerea Nacional Chile SA Sponsored ADR 1,013,900 8,111,200
Transportation - Services 0.7%
EGL, Inc. (b) (e) 661,260 10,051,152
Transportation - Ship 0.5%
Omi Corporation (b) 1,235,100 7,608,216
Transportation - Truck 0.6%
Covenant Transport, Inc. Class A (b) 511,000 8,687,000
Utility - Gas Distribution 0.0%
Southwestern Energy Corporation (b) 23,000 345,230
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $1,181,056,529) 1,362,421,738
- -------------------------------------------------------------------------------
32
- --------------------------------------------------------------------------------
STRONG ADVISOR SMALL CAP VALUE FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Short-Term Investments (a) 9.4%
Repurchase Agreements
ABN AMRO Inc. (Dated 6/30/03), 1.20%,
Due 7/01/03 (Repurchase proceeds
$139,704,657); Collateralized by: United
States Government & Agency Issues (c) $ 139,700,000 $ 139,700,000
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds
$652,014); Collateralized by: United
States Government & Agency Issues (c) 652,000 652,000
- -------------------------------------------------------------------------------
Total Short-Term Investments
(Cost $140,352,000) 140,352,000
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $1,321,408,529) 100.3% 1,502,773,738
Other Assets and Liabilities, Net (0.3%) (4,903,758)
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 1,497,869,980
===============================================================================
WRITTEN OPTIONS ACTIVITY
- -------------------------------------------------------------------------------
Contracts Premiums
- -------------------------------------------------------------------------------
Options outstanding at beginning of period 28,521 $ 5,669,788
Options written during the period 52,124 9,500,472
Options closed (61,738) (11,386,819)
Options expired (2,075) (273,760)
Options exercised (1,367) (233,455)
------------- ---------------
Options outstanding at end of period 15,465 $ 3,276,226
============= ===============
WRITTEN CALL OPTIONS DETAIL
- --------------------------------------------------------------------------------
Contracts
(100 shares Value
per contract) (Note 2)
- --------------------------------------------------------------------------------
ALLETE, Inc.
(Strike Price is $22.50. Expiration date is
7/18/03. Premium received is $33,398.) 200 $ (81,000)
(Strike Price is $25.00. Expiration date is
7/18/03. Premium received is $12,437.) 100 (16,750)
American Eagle Outfitters, Inc.
(Strike Price is $15.00. Expiration date is
7/18/03. Premium received is $12,699.) 100 (34,500)
(Strike Price is $17.50. Expiration date is
8/15/03. Premium received is $68,947.) 350 (61,250)
Andrx Group
(Strike Price is $20.00. Expiration date is
7/18/03. Premium received is $16,349.) 50 (5,500)
(Strike Price is $22.50. Expiration date is
7/18/03. Premium received is $7,600.) 50 (1,625)
(Strike Price is $25.00. Expiration date is
7/18/03. Premium received is $7,900.) 100 (2,250)
(Strike Price is $20.00. Expiration date is
9/19/03. Premium received is $83,396.) 200 (43,500)
(Strike Price is $22.50. Expiration date is
9/19/03. Premium received is $16,019.) 60 (7,200)
(Strike Price is $25.00. Expiration date is
9/19/03. Premium received is $15,699.) 100 (6,750)
Applera Corporation-Applied Biosystems Group
(Strike Price is $17.50. Expiration date is
7/18/03. Premium received is $17,294.) 100 (18,000)
(Strike Price is $20.00. Expiration date is
7/18/03. Premium received is $69,395.) 500 (23,750)
(Strike Price is $22.50. Expiration date is
7/18/03. Premium received is $7,900.) 100 (1,000)
(Strike Price is $17.50. Expiration date is
9/19/03. Premium received is $28,699.) 100 (26,000)
(Strike Price is $20.00. Expiration date is
9/19/03. Premium received is $51,003.) 300 (39,000)
(Strike Price is $22.50. Expiration date is
9/19/03. Premium received is $13,770.) 100 (5,750)
Armor Holdings, Inc.
(Strike Price is $15.00. Expiration date is
11/21/03. Premium received is $22,399.) 200 (10,000)
BJ Services Company
(Strike Price is $32.50. Expiration date is
7/18/03. Premium received is $69,697.) 100 (51,000)
(Strike Price is $35.00. Expiration date is
7/18/03. Premium received is $48,698.) 100 (29,000)
(Strike Price is $37.50. Expiration date is
7/18/03. Premium received is $87,196.) 350 (42,000)
(Strike Price is $40.00. Expiration date is
7/18/03. Premium received is $68,947.) 350 (11,375)
Black Box Corporation
(Strike Price is $35.00. Expiration date is
7/18/03. Premium received is $113,960.) 300 (60,750)
(Strike Price is $40.00. Expiration date is
7/18/03. Premium received is $108,333.) 550 (9,625)
(Strike Price is $35.00. Expiration date is
9/19/03. Premium received is $362,083.) 550 (203,500)
(Strike Price is $40.00. Expiration date is
9/19/03. Premium received is $84,746.) 250 (36,875)
Celestica, Inc.
(Strike Price is $15.00. Expiration date is
7/18/03. Premium received is $30,398.) 200 (24,500)
(Strike Price is $12.50. Expiration date is
9/19/03. Premium received is $15,247.) 100 (37,000)
(Strike Price is $15.00. Expiration date is
9/19/03. Premium received is $10,349.) 50 (10,125)
EGL, Inc.
(Strike Price is $15.00. Expiration date is
7/18/03. Premium received is $2,425.) 25 (1,812)
(Strike Price is $15.00. Expiration date is
8/15/03. Premium received is $29,637.) 200 (23,500)
Eclipsys Corporation
(Strike Price is $10.00. Expiration date is
9/19/03. Premium received is $14,803.) 150 (18,000)
Foot Locker, Inc.
(Strike Price is $12.50. Expiration date is
8/15/03. Premium received is $29,549.) 150 (18,000)
Harmony Gold Mining Company, Ltd.
Sponsored ADR
(Strike Price is $12.50. Expiration date is
11/21/03. Premium received is $78,596.) 300 (57,750)
(Strike Price is $15.00. Expiration date is
11/21/03. Premium received is $85,796.) 650 (56,875)
33
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
STRONG ADVISOR SMALL CAP VALUE FUND (continued)
Contracts
(100 shares Value
per contract) (Note 2)
- --------------------------------------------------------------------------------
WRITTEN CALL OPTIONS DETAIL (continued)
- --------------------------------------------------------------------------------
IDX Systems Corporation
(Strike Price is $15.00. Expiration date is
7/18/03. Premium received is $7,400.) 100 $ (9,250)
(Strike Price is $15.00. Expiration date is
8/15/03. Premium received is $11,749.) 125 (17,188)
JDA Software Group, Inc.
(Strike Price is $10.00. Expiration date is
7/18/03. Premium received is $5,160.) 30 (3,975)
(Strike Price is $12.50. Expiration date is
10/17/03. Premium received is $20,549.) 150 (13,125)
J. Jill Group, Inc.
(Strike Price is $15.00. Expiration date is
7/18/03. Premium received is $34,874.) 200 (41,500)
(Strike Price is $17.50. Expiration date is
7/18/03. Premium received is $7,900.) 100 (4,750)
(Strike Price is $15.00. Expiration date is
12/19/03. Premium received is $30,699.) 100 (32,000)
Manor Care, Inc.
(Strike Price is $22.50. Expiration date is
11/21/03. Premium received is $40,698.) 100 (32,500)
(Strike Price is $25.00. Expiration date is
11/21/03. Premium received is $22,699.) 100 (16,750)
McMoRan Exploration Company
(Strike Price is $12.50. Expiration date is
7/18/03. Premium received is $1,480.) 20 (300)
(Strike Price is $12.50. Expiration date is
8/15/03. Premium received is $9,699.) 100 (3,750)
(Strike Price is $10.00. Expiration date is
11/21/03. Premium received is $30,699.) 100 (20,750)
(Strike Price is $12.50. Expiration date is
11/21/03. Premium received is $33,398.) 200 (19,500)
Meridian Gold, Inc.
(Strike Price is $10.00. Expiration date is
7/18/03. Premium received is $30,531.) 250 (38,125)
(Strike Price is $10.00. Expiration date is
10/17/03. Premium received is $22,699.) 100 (20,750)
(Strike Price is $12.50. Expiration date is
10/17/03. Premium received is $20,399.) 200 (16,500)
OM Group, Inc.
(Strike Price is $10.00. Expiration date is
7/18/03. Premium received is $59,482.) 300 (142,500)
(Strike Price is $12.50. Expiration date is
7/18/03. Premium received is $52,397.) 200 (47,000)
(Strike Price is $15.00. Expiration date is
7/18/03. Premium received is $38,598.) 300 (14,250)
(Strike Price is $17.50. Expiration date is
7/18/03. Premium received is $29,099.) 300 (2,250)
(Strike Price is $15.00. Expiration date is
8/15/03. Premium received is $17,799.) 200 (22,000)
Omnicare, Inc.
(Strike Price is $27.50. Expiration date is
7/18/03. Premium received is $7,900.) 100 (64,500)
(Strike Price is $30.00. Expiration date is
7/18/03. Premium received is $370.) 5 (2,000)
(Strike Price is $25.00. Expiration date is
9/19/03. Premium received is $32,698.) 100 (90,500)
(Strike Price is $27.50. Expiration date is
9/19/03. Premium received is $33,398.) 200 (133,000)
(Strike Price is $30.00. Expiration date is
9/19/03. Premium received is $38,885.) 150 (67,500)
OraSure Technologies, Inc.
(Strike Price is $7.50. Expiration date is
10/17/03. Premium received is $21,155.) 300 (27,750)
Pegasus Solutions, Inc.
(Strike Price is $12.50. Expiration date is
7/18/03. Premium received is $65,997.) 500 (190,000)
Pride International, Inc.
(Strike Price is $17.50. Expiration date is
7/18/03. Premium received is $15,699.) 100 (14,500)
R.H. Donnelley Corporation
(Strike Price is $30.00. Expiration date is
8/15/03. Premium received is $313,164.) 900 (598,500)
(Strike Price is $35.00. Expiration date is
8/15/03. Premium received is $45,598.) 300 (62,250)
(Strike Price is $35.00. Expiration date is
11/21/03. Premium received is $20,175.) 100 (30,250)
Sharper Image Corporation
(Strike Price is $22.50. Expiration date is
7/18/03. Premium received is $3,950.) 50 (24,000)
(Strike Price is $25.00. Expiration date is
7/18/03. Premium received is $81,896.) 450 (114,750)
(Strike Price is $20.00. Expiration date is
8/15/03. Premium received is $28,049.) 150 (111,000)
(Strike Price is $25.00. Expiration date is
8/15/03. Premium received is $79,746.) 250 (76,250)
(Strike Price is $30.00. Expiration date is
8/15/03. Premium received is $6,900.) 100 (6,000)
Shopko Stores, Inc.
(Strike Price is $12.50. Expiration date is
9/19/03. Premium received is $20,549.) 150 (21,375)
Smith International, Inc.
(Strike Price is $37.50. Expiration date is
7/18/03. Premium received is $40,822.) 150 (12,000)
(Strike Price is $40.00. Expiration date is
7/18/03. Premium received is $42,165.) 200 (4,000)
Too, Inc.
(Strike Price is $17.50. Expiration date is
8/15/03. Premium received is $21,794.) 100 (29,500)
(Strike Price is $20.00. Expiration date is
8/15/03. Premium received is $8,400.) 100 (12,500)
United States Steel Corporation
(Strike Price is $12.50. Expiration date is
7/18/03. Premium received is $40,898.) 200 (78,000)
(Strike Price is $15.00. Expiration date is
7/18/03. Premium received is $9,849.) 50 (7,625)
(Strike Price is $15.00. Expiration date is
10/17/03. Premium received is $10,199.) 100 (20,750)
(Strike Price is $17.50. Expiration date is
10/17/03. Premium received is $32,598.) 300 (22,500)
------------- ---------------
15,465 $ (3,415,225)
============= ===============
34
- --------------------------------------------------------------------------------
STRONG ADVISOR U.S. VALUE FUND
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Common Stocks 99.9%
Aerospace - Defense 2.3%
General Dynamics Corporation 17,900 $ 1,297,750
Lockheed Martin Corporation 24,400 1,160,708
Raytheon Company 80,000 2,627,200
---------------
5,085,658
Auto Manufacturers - Domestic 0.6%
General Motors Corporation 38,100 1,371,600
Banks - Midwest 0.3%
Provident Financial Group, Inc. 27,000 692,010
Banks - Money Center 8.3%
Bank of America Corporation 63,000 4,978,890
The Bank of New York Company, Inc. 35,000 1,006,250
Citigroup, Inc. 185,000 7,918,000
HSBC Holdings PLC Sponsored ADR 14,231 841,194
J.P. Morgan Chase & Company 103,000 3,520,540
---------------
18,264,874
Banks - Northeast 0.8%
Banknorth Group, Inc. 55,000 1,403,600
Peoples Bank 11,400 330,486
---------------
1,734,086
Banks - Southeast 0.6%
Compass Bancshares, Inc. 37,000 1,292,410
Banks - Super Regional 7.8%
Bank One Corporation 57,000 2,119,260
Charter One Financial, Inc. 44,415 1,384,860
KeyCorp 41,600 1,051,232
Mellon Financial Corporation 28,000 777,000
National City Corporation 36,500 1,193,915
Regions Financial Corporation 46,000 1,553,880
SouthTrust Corporation 39,600 1,077,120
U.S. Bancorp 92,800 2,273,600
Wachovia Corporation 67,100 2,681,316
Wells Fargo Company 59,000 2,973,600
---------------
17,085,783
Beverages - Alcoholic 0.3%
Anheuser-Busch Companies, Inc. 13,000 663,650
Building - Maintenance & Services 2.2%
The ServiceMaster Company 440,000 4,708,000
Building Products - Wood 2.9%
Georgia-Pacific Corporation 245,000 4,642,750
Weyerhaeuser Company 31,200 1,684,800
---------------
6,327,550
Chemicals - Basic 1.2%
The Dow Chemical Company 56,000 1,733,760
PPG Industries, Inc. 15,300 776,322
---------------
2,510,082
Chemicals - Fertilizers 0.7%
IMC Global, Inc. 238,000 1,596,980
Chemicals - Specialty 0.2%
Praxair, Inc. 6,000 360,600
Commercial Services - Miscellaneous 1.4%
ARAMARK Corporation Class B (b) 48,000 1,076,160
Automatic Data Processing, Inc. 60,000 2,031,600
---------------
3,107,760
Computer - Manufacturers 1.3%
Hewlett-Packard Company 133,000 2,832,900
Computer - Services 2.1%
International Business Machines Corporation 45,000 3,712,500
Unisys Corporation (b) 70,100 860,828
---------------
4,573,328
Cosmetics - Personal Care 0.3%
Kimberly-Clark Corporation 11,000 573,540
Diversified Operations 4.6%
AOL Time Warner, Inc. (b) 115,000 1,850,350
Agilent Technologies, Inc. (b) 33,000 645,150
E.I. Du Pont de Nemours & Company 50,631 2,108,275
Emerson Electric Company 27,900 1,425,690
ITT Industries, Inc. 18,000 1,178,280
Loews Corporation 19,500 922,155
3M Co. 6,000 773,880
United Technologies Corporation 17,200 1,218,276
---------------
10,122,056
Electronics - Measuring Instruments 0.4%
Waters Corporation (b) 30,000 873,900
Electronics - Semiconductor Manufacturing 0.4%
Micron Technology, Inc. (b) 70,000 814,100
Finance - Consumer/Commercial Loans 0.2%
Capital One Financial Corporation 10,000 491,800
Finance - Equity REIT 0.7%
Equity Office Properties Trust 30,000 810,300
Equity Residential Properties Trust 27,000 700,650
---------------
1,510,950
Finance - Investment Brokers 1.1%
The Goldman Sachs Group, Inc. 8,200 686,750
Morgan Stanley 42,000 1,795,500
---------------
2,482,250
Finance - Investment Management 0.7%
T. Rowe Price Group, Inc. 13,000 490,750
Waddell & Reed Financial, Inc. Class A 39,000 1,001,130
---------------
1,491,880
Finance - Savings & Loan 0.9%
Washington Mutual, Inc. 50,000 2,065,000
Financial Services - Miscellaneous 0.7%
American Express Company 38,000 1,588,780
Food - Meat Products 0.4%
Tyson Foods, Inc. Class A 87,000 923,940
Food - Miscellaneous Preparation 1.8%
Del Monte Foods Company (b) 111,900 989,196
General Mills, Inc. 15,300 725,373
Sara Lee Corporation 115,000 2,163,150
---------------
3,877,719
Insurance - Accident & Health 0.9%
AFLAC, Inc. 65,000 1,998,750
Insurance - Brokers 0.3%
Marsh & McLennan Companies, Inc. 12,600 643,482
35
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
STRONG ADVISOR U.S. VALUE FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Insurance - Diversified 2.7%
American International Group, Inc. 58,500 $ 3,228,030
John Hancock Financial Services, Inc. 24,500 752,885
Principal Financial Group, Inc. 25,300 815,925
Prudential Financial, Inc. 34,100 1,147,465
---------------
5,944,305
Insurance - Life 0.4%
Lincoln National Corporation 25,000 890,750
Insurance - Property/Casualty/Title 2.2%
The Allstate Corporation 32,000 1,140,800
Chubb Corporation 16,500 990,000
Hartford Financial Services Group, Inc. 21,800 1,097,848
The St. Paul Companies, Inc. 20,300 741,153
Travelers Property and Casualty Corporation
Class B 60,309 951,073
---------------
4,920,874
Leisure - Hotels & Motels 0.4%
Marriott International, Inc. Class A 23,000 883,660
Leisure - Movies & Related 1.9%
Metro-Goldwyn-Mayer, Inc. (b) 340,000 4,222,800
Leisure - Photo Equipment/Related 0.3%
Eastman Kodak Company 24,200 661,870
Leisure - Services 1.5%
Cendant Corporation (b) 81,800 1,498,576
The Walt Disney Company 93,000 1,836,750
---------------
3,335,326
Machinery - Construction/Mining 0.8%
Caterpillar, Inc. 30,100 1,675,366
Machinery - Farm 0.5%
Deere & Company 26,000 1,188,200
Media - Cable TV 1.8%
Comcast Corporation Class A (b) 58,974 1,779,835
Comcast Corporation Class A (Non-Voting) (b) 46,000 1,326,180
Cox Communications, Inc. Class A (b) 25,400 810,260
---------------
3,916,275
Media - Newspapers 0.9%
Gannett Company, Inc. 26,200 2,012,422
Media - Radio/TV 2.6%
Clear Channel Communications, Inc. (b) 19,500 826,605
Liberty Media Corporation Class A (b) 238,000 2,751,280
Viacom, Inc. Class B (b) 49,700 2,169,902
---------------
5,747,787
Medical - Ethical Drugs 2.4%
Bristol-Myers Squibb Company 60,400 1,639,860
Merck & Company, Inc. 48,000 2,906,400
Schering-Plough Corporation 32,000 595,200
---------------
5,141,460
Medical - Hospitals 0.8%
Tenet Healthcare Corporation (b) 154,000 1,794,100
Medical - Wholesale Drugs/Sundries 1.4%
McKesson Corporation 84,000 3,002,160
Medical/Dental - Supplies 0.9%
Sola International, Inc. (b) 113,300 1,971,420
Metal Ores - Miscellaneous 1.1%
Alcoa, Inc. 52,100 1,328,550
Phelps Dodge Corporation (b) 30,000 1,150,200
---------------
2,478,750
Oil & Gas - International Integrated 7.4%
ChevronTexaco Corporation 48,000 3,465,600
ConocoPhillips 49,000 2,685,200
Exxon Mobil Corporation 282,000 10,126,620
---------------
16,277,420
Oil & Gas - International Specialty 1.0%
Kerr McGee Corporation 20,700 927,360
Unocal Corporation 40,200 1,153,338
---------------
2,080,698
Oil & Gas - United States Integrated 0.3%
El Paso Corporation 89,600 723,968
Paper & Paper Products 0.6%
International Paper Company 39,300 1,404,189
Pollution Control - Services 0.5%
Waste Management, Inc. 44,000 1,059,960
Retail - Apparel/Shoe 0.4%
The Gap, Inc. 50,000 938,000
Retail - Department Stores 0.9%
Federated Department Stores, Inc. 25,000 921,250
May Department Stores Company 44,793 997,092
---------------
1,918,342
Retail - Drug Stores 0.4%
CVS Corporation 28,200 790,446
Retail - Restaurants 3.0%
McDonald's Corporation 293,100 6,465,786
Retail - Super/Mini Markets 1.1%
The Kroger Company (b) 150,000 2,502,000
Soap & Cleaning Preparations 0.9%
The Procter & Gamble Company 23,000 2,051,140
Telecommunications - Equipment 1.7%
Motorola, Inc. 396,000 3,734,280
Telecommunications - Services 5.9%
ALLTEL Corporation 19,000 916,180
AT&T Corporation 39,400 758,450
BellSouth Corporation 80,000 2,130,400
SBC Communications, Inc. 148,400 3,791,620
Sprint Corporation 51,000 734,400
Verizon Communications, Inc. 117,000 4,615,650
---------------
12,946,700
Tobacco - 1.1%
Altria Group, Inc. 55,000 2,499,200
Transportation - Air Freight 0.9%
FedEx Corporation 33,000 2,046,990
Transportation - Rail 0.8%
Burlington Northern Santa Fe Corporation 24,800 705,312
Norfolk Southern Corporation 50,000 960,000
---------------
1,665,312
36
- --------------------------------------------------------------------------------
STRONG ADVISOR U.S. VALUE FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Utility - Electric Power 3.3%
Consolidated Edison, Inc. 27,000 $ 1,168,560
Duke Energy Corporation 70,000 1,396,500
Exelon Corporation 26,200 1,567,022
FPL Group, Inc. 26,600 1,778,210
The Southern Company 42,000 1,308,720
---------------
7,219,012
Utility - Gas Distribution 0.7%
Vectren Corporation 56,700 1,420,335
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $197,731,605) 219,196,721
- -------------------------------------------------------------------------------
Short-Term Investments (a) 7.4%
Collateral Received for Securities
Lending (f) 7.2%
Money Market Funds 4.9%
Deutsche Daily Assets Fund - Institutional
Class 10,726,480 10,726,480
Repurchase Agreements 2.3%
Barclays Capital, Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase proceeds
$1,706,750); Collateralized by: United
States Government & Agency Issues $ 1,706,686 1,706,686
Goldman, Sachs and Company (Dated
6/30/03), 1.22%, Due 7/01/03 (Repurchase
proceeds $1,706,744); Collateralized by:
United States Government & Agency Issues 1,706,686 1,706,686
Lehman Brothers Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase proceeds
$1,706,750); Collateralized by: United
States Government & Agency Issues 1,706,686 1,706,686
---------------
5,120,058
---------------
Total Collateral Received for Securities
Lending 15,846,538
Repurchase Agreements 0.2%
ABN AMRO Inc. (Dated (6/30/03), 1.20%,
Due 7/01/03 (Repurchase proceeds
$400,013); Collateralized by: United States
Government & Agency Issues (c) 400,000 400,000
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds
$61,601); Collateralized by: United States
Government Agency & Issues (c) 61,600 61,600
---------------
Total Repurchase Agreements 461,600
- -------------------------------------------------------------------------------
Total Short-Term Investments
(Cost $16,308,138) 16,308,138
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $214,039,743) 107.3% 235,504,859
Other Assets & Liabilities, Net (7.3%) (16,088,149)
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 219,416,710
===============================================================================
STRONG ADVISOR ENDEAVOR LARGE CAP FUND
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Common Stocks 99.8%
Auto/Truck - Original Equipment 1.6%
Eaton Corporation 7,200 $ 565,992
Banks - Money Center 4.1%
Citigroup, Inc. 33,475 1,432,730
Beverages - Soft Drinks 2.0%
The Coca-Cola Company 14,964 694,479
Commercial Services - Advertising 0.5%
Lamar Advertising Company (b) 4,800 169,008
Commercial Services - Schools 1.1%
Apollo Group, Inc. Class A (b) 3,085 190,530
Career Education Corporation (b) 2,670 182,681
---------------
373,211
Computer - Local Networks 2.9%
Cisco Systems, Inc. (b) 60,485 1,009,495
Computer - Manufacturers 1.2%
Dell, Inc. (b) 13,330 426,027
Computer - Services 0.5%
International Business Machines Corporation 2,020 166,650
Computer Software - Desktop 3.6%
Microsoft Corporation 49,060 1,256,427
Computer Software - Education/Entertainment 1.1%
Electronic Arts, Inc. (b) 5,340 395,107
Computer Software - Enterprise 5.0%
SAP AG Sponsored ADR 15,870 463,721
Siebel Systems, Inc. (b) 23,730 226,384
VERITAS Software Corporation (b) 36,870 1,057,063
---------------
1,747,168
Computer Software - Security 1.0%
Symantec Corporation (b) 7,710 338,161
Diversified Operations 10.4%
AOL Time Warner, Inc. (b) 113,715 1,829,674
Tyco International, Ltd. 95,685 1,816,101
---------------
3,645,775
Electronics - Semiconductor Equipment 0.8%
Applied Materials, Inc. (b) 17,445 276,678
Electronics - Semiconductor Manufacturing 7.9%
Intel Corporation 72,010 1,496,656
Linear Technology Corporation 5,490 176,833
Maxim Integrated Products, Inc. 15,550 531,655
Microchip Technology, Inc. 16,240 399,991
Micron Technology, Inc. (b) 13,190 153,400
---------------
2,758,535
Finance - Consumer/Commercial Loans 1.0%
SLM Corporation 8,640 338,429
Finance - Investment Brokers 1.1%
Lehman Brothers Holdings, Inc. 6,030 400,874
37
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
STRONG ADVISOR ENDEAVOR LARGE CAP FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Finance - Publicly Traded Investment
Funds - Equity (Non 40 Act) 1.7%
Biotech Holders Trust 1,390 $ 171,317
Pharmaceutical Holders Trust 5,480 443,332
---------------
614,649
Financial Services - Miscellaneous 3.1%
American Express Company 4,095 171,212
First Data Corporation 22,015 912,302
---------------
1,083,514
Insurance - Diversified 2.2%
American International Group, Inc. 13,930 768,657
Internet - E*Commerce 2.3%
eBay, Inc. (b) 7,630 794,893
Internet - Internet Service
Provider/Content 2.7%
Yahoo! Inc. (b) 28,860 945,454
Leisure - Services 5.3%
The Walt Disney Company 21,690 428,377
Royal Caribbean Cruises, Ltd. 62,420 1,445,647
---------------
1,874,024
Media - Cable TV 0.6%
EchoStar Communications Corporation Class A (b) 6,350 219,837
Media - Newspapers 2.0%
The E.W. Scripps Company Class A 8,050 714,196
Media - Radio/TV 2.6%
Univision Communications, Inc. Class A (b) 13,900 422,560
Viacom, Inc. Class B (b) 11,120 485,499
---------------
908,059
Medical - Biomedical/Genetics 3.9%
Amgen, Inc. (b) 9,920 659,085
Genzyme Corporation (b) 3,690 154,242
Gilead Sciences, Inc. (b) 3,590 199,532
IDEC Pharmaceuticals Corporation (b) 10,660 362,440
---------------
1,375,299
Medical - Drug/Diversified 1.4%
Johnson & Johnson 9,209 476,105
Medical - Ethical Drugs 7.0%
Medicis Pharmaceutical Corporation Class A 8,180 463,806
Merck & Company, Inc. 11,810 715,096
Pfizer, Inc. 37,364 1,275,981
---------------
2,454,883
Medical - Generic Drugs 1.3%
Teva Pharmaceutical Industries, Ltd. ADR 8,080 459,994
Medical - Health Maintenance Organizations 1.3%
Anthem, Inc. (b) 5,915 456,342
Medical - Products 2.3%
Boston Scientific Corporation (b) 4,450 271,895
Medtronic, Inc. 11,100 532,467
---------------
804,362
Oil & Gas - Drilling 0.9%
Transocean, Inc. (b) 13,940 306,262
Oil & Gas - Field Services 0.5%
Schlumberger, Ltd. 3,630 172,679
Retail - Home Furnishings 0.3%
Bed Bath & Beyond, Inc. (b) 2,870 111,385
Retail - Major Discount Chains 1.3%
Target Corporation 12,480 472,243
Retail - Restaurants 2.1%
McDonald's Corporation 18,350 404,801
Panera Bread Company Class A (b) 7,920 316,800
---------------
721,601
Retail/Wholesale - Auto Parts 0.9%
AutoZone, Inc. (b) 4,200 319,074
Retail/Wholesale - Building Products 2.0%
The Home Depot, Inc. 10,360 343,123
Lowe's Companies, Inc. 8,150 350,042
---------------
693,165
Telecommunications - Equipment 5.2%
Alcatel SA ADR (b) 75,900 679,305
Corning, Inc. (b) 90,120 665,987
Nokia Corporation Sponsored ADR 28,440 467,269
---------------
1,812,561
Trucks & Parts - Heavy Duty 1.1%
Navistar International Corporation (b) 11,350 370,351
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $31,479,884) 34,924,335
- -------------------------------------------------------------------------------
Short-Term Investments (a) 0.5%
Repurchase Agreements
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds $180,304);
Collateralized by: United States Government
& Agency Issues (c) $ 180,300 180,300
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $180,300) 180,300
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $31,660,184) 100.3% 35,104,635
Other Assets and Liabilities, Net (0.3%) (124,082)
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 34,980,553
===============================================================================
STRONG ADVISOR FOCUS FUND
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Common Stocks 96.3%
Banks - Money Center 1.8%
Citigroup, Inc. 1,500 $ 64,200
Building - Heavy Construction 1.1%
Chicago Bridge & Iron Company NV 1,700 38,556
Commercial Services - Schools 2.6%
Apollo Group, Inc. Class A (b) 1,500 92,640
Computer - Local Networks 4.7%
Cisco Systems, Inc. (b) 4,300 71,767
Juniper Networks, Inc. (b) 4,000 49,480
QLogic Corporation (b) 1,000 48,330
---------------
169,577
38
- --------------------------------------------------------------------------------
STRONG ADVISOR FOCUS FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Computer - Manufacturers 5.7%
Dell, Inc. (b) 6,500 $ 207,740
Computer - Services 3.3%
Amdocs, Ltd. (b) 5,000 120,000
Computer Software -
Education/Entertainment 2.0%
Electronic Arts, Inc. (b) 1,000 73,990
Computer Software - Enterprise 0.8%
VERITAS Software Corporation (b) 1,000 28,670
Computer Software - Security 3.8%
VeriSign, Inc. (b) 10,000 138,300
Diversified Operations 2.4%
General Electric Company 3,000 86,040
Electronics - Semiconductor Manufacturing 9.2%
Analog Devices, Inc. (b) 4,500 156,690
Broadcom Corporation Class A (b) 3,000 74,730
Intel Corporation 5,000 103,920
---------------
335,340
Finance - Consumer/Commercial Loans 1.6%
Capital One Financial Corporation 1,200 59,016
Finance - Mortgage & Related Services 1.1%
Doral Financial Corporation 900 40,185
Financial Services - Miscellaneous 2.3%
First Data Corporation 2,000 82,880
Household - Office Furniture 0.3%
American Financial Realty Trust 700 10,437
Insurance - Property/Casualty/Title 0.4%
Montpelier Re Holdings, Ltd. (b) 500 15,800
Internet - E*Commerce 5.7%
eBay, Inc. (b) 2,000 208,360
Medical - Biomedical/Genetics 14.1%
Amgen, Inc. (b) 1,400 93,016
CV Therapeutics, Inc. (b) 2,600 77,116
Genzyme Corporation (b) 4,700 196,460
Gilead Sciences, Inc. (b) 2,600 144,508
---------------
511,100
Medical - Ethical Drugs 5.0%
Forest Laboratories, Inc. (b) 1,000 54,750
Pfizer, Inc. 3,700 126,355
---------------
181,105
Medical - Products 2.7%
Boston Scientific Corporation (b) 1,600 97,760
Oil & Gas - Drilling 1.0%
ENSCO International, Inc. 1,400 37,660
Oil & Gas - Machinery/Equipment 1.5%
Smith International, Inc. (b) 1,500 55,110
Oil & Gas - United States Exploration &
Production 1.2%
XTO Energy, Inc. 2,200 44,242
Retail - Apparel/Shoe 6.7%
Chicos FAS, Inc. (b) 2,100 44,205
Coach, Inc. (b) 4,000 198,960
---------------
243,165
Retail - Department Stores 1.3%
Kohl's Corporation (b) 900 46,242
Retail - Home Furnishings 1.6%
Bed Bath & Beyond, Inc. (b) 1,500 58,215
Retail/Wholesale - Building Products 1.8%
The Home Depot, Inc. 2,000 66,240
Steel - Producers 1.9%
Nucor Corporation 1,400 68,390
Telecommunications - Equipment 8.7%
Corning, Inc. (b) 29,900 220,961
JDS Uniphase Corporation (b) 15,000 52,650
Polycom, Inc. (b) 3,000 41,580
---------------
315,191
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $2,992,284) 3,496,151
- -------------------------------------------------------------------------------
Short-Term Investments (a) 5.3%
Repurchase Agreements
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds $194,904);
Collateralized by: United States Government
& Agency Issues (c) $ 194,900 194,900
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $194,900) 194,900
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $3,187,184) 101.6% 3,691,051
Other Assets and Liabilities, Net (1.6%) (59,594)
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 3,631,457
===============================================================================
WRITTEN OPTIONS ACTIVITY
- -------------------------------------------------------------------------------
Contracts Premiums
- -------------------------------------------------------------------------------
Options outstanding at beginning of period -- $ --
Options written during the period 38 9,486
Options closed (38) (9,486)
Options expired -- --
Options exercised -- --
------------- ---------------
Options outstanding at end of period -- $ --
============= ===============
STRONG ADVISOR INTERNATIONAL CORE FUND
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Common Stocks 87.1%
Australia 0.9%
BHP Billiton, Ltd. 1,600 $ 9,302
BHP Steel, Ltd. 480 1,202
---------------
10,504
39
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
STRONG ADVISOR INTERNATIONAL CORE FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Belgium 1.3%
Fortis 900 $ 15,653
Bermuda 0.4%
Jardine Matheson Holdings, Ltd. 765 4,705
Brazil 1.0%
Companhia Vale do Rio Doce Sponsored ADR 400 11,864
Canada 4.6%
Bank of Nova Scotia 300 13,436
Encana Corporation 700 26,922
TransCanada Corporation 700 12,401
---------------
52,759
Denmark 1.5%
Danske Bank A/S 900 17,564
Finland 0.8%
UPM-Kymmene Oyj 600 8,717
France 12.1%
Accor SA 400 14,494
Aventis SA 200 11,022
BNP Paribas SA 400 20,360
Essilor International SA 200 8,070
Groupe Danone Sponsored ADR 900 24,975
L'Oreal SA 300 21,189
Thales SA 550 16,354
Total SA Sponsored ADR 300 22,740
---------------
139,204
Germany 5.9%
Adidas-Salomon AG 100 8,558
E.On AG 300 15,391
iShares MSCI Germany Index Fund 900 10,980
Medion AG 210 9,141
Puma AG 100 9,904
Schering AG 180 8,794
Siemens AG 100 4,906
---------------
67,674
Hong Kong 2.0%
Hutchison Whampoa, Ltd. 2,000 12,182
Swire Pacific, Ltd. A Shares 2,500 10,932
---------------
23,114
Ireland 2.1%
Bank of Ireland 500 6,068
Ryanair Holdings PLC ADR (b) 400 17,960
---------------
24,028
Italy 4.8%
Credito Italiano SA 2,300 11,033
ENI Spa 1,500 22,862
IntesaBCI Spa 4,000 12,883
Telecom Italia Spa 1,000 9,122
---------------
55,900
Japan 14.8%
Ajinomoto Company, Inc. 1,600 15,367
Canon, Inc. ADR 500 22,825
East Japan Railway Company 3 13,379
Fuji Photo Film Company, Ltd. ADR 200 5,762
Honda Motor Company, Ltd. 300 11,400
Komatsu, Ltd. 4,000 15,367
Lawson, Inc. 500 13,780
Mitsubishi Heavy Industries, Ltd. 5,500 14,285
Nintendo Company, Ltd. 150 10,811
Nippon Telegraph and Telephone Corporation
Sponsored ADR 600 11,880
Sony Corporation 200 5,646
Tokyo Gas Company, Ltd. 5,000 14,406
Toyota Motor Corporation 600 15,584
---------------
170,492
Mexico 2.6%
America Movil ADR Series L 300 5,625
Telefonos de Mexico SA ADR Series L (b) 400 12,568
Wal-Mart de Mexico SA de CV 4,000 11,923
---------------
30,116
Netherlands 3.1%
Koninklijke Philips Electronics NV Sponsored
ADR - New York Registry Shares 600 11,466
Royal Dutch Petroleum Company - New York
Shares 300 13,986
STMicroelectronics NV (b) 400 8,402
STMicroelectronics NV - New York Registry
Shares 100 2,079
---------------
35,933
Singapore 0.8%
DBS Group Holdings, Ltd. 1,500 8,777
South Africa 1.1%
Gold Fields, Ltd. Sponsored ADR 1,000 12,180
South Korea 1.5%
KT Corporation Sponsored ADR 500 9,855
Samsung Electronics 25 7,433
---------------
17,288
Spain 3.4%
ACS, Actividades de Construccion y
Servicios SA 400 17,093
Banco Santander Central Hispano SA 1,300 11,410
Telefonica SA Sponsored ADR 314 10,855
---------------
39,358
Sweden 3.2%
Autoliv, Inc. 1,000 26,981
Sandvik AB 400 10,492
---------------
37,473
Switzerland 4.6%
Nestle SA 70 14,477
Novartis AG Sponsored ADR 400 15,924
Swiss Reinsurance 225 12,494
Zurich Financial Services AG (b) 90 10,755
---------------
53,650
United Kingdom 14.6%
Anglo American PLC 1,600 24,660
BP PLC Sponsored ADR 350 14,707
Boots Group PLC 750 8,050
Diageo PLC 700 7,496
Exel PLC (b) 1,400 14,413
HSBC Holdings PLC 500 5,925
HSBC Holdings PLC (Hong Kong Regulated) 1,000 11,862
iShares Trust MSCI United Kingdom Index Fund 1,000 13,130
Lloyds TSB Group PLC 1,600 11,394
Royal Bank of Scotland PLC 700 19,696
Tesco PLC (b) 6,000 21,773
Vodafone Group PLC 8,000 15,690
---------------
168,796
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $931,100) 1,005,749
- -------------------------------------------------------------------------------
40
- --------------------------------------------------------------------------------
STRONG ADVISOR INTERNATIONAL CORE FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Short-Term Investments (a) 12.6%
Repurchase Agreements
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds $145,503);
Collateralized by: United States Government
& Agency Issues (c) $ 145,000 $ 145,500
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $145,500) 145,500
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $1,076,600) 99.7% 1,151,249
Other Assets and Liabilities, Net 0.3% 2,913
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 1,154,162
===============================================================================
STRONG ADVISOR SELECT FUND
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Common Stocks 98.4%
Banks - Money Center 4.1%
Citigroup, Inc. 71,055 $ 3,041,154
Commercial Services - Schools 1.5%
Career Education Corporation (b) 16,100 1,101,562
Computer - Local Networks 5.5%
Cisco Systems, Inc. (b) 242,150 4,041,484
Computer - Manufacturers 1.4%
Dell, Inc. (b) 31,575 1,009,137
Computer Software - Desktop 4.1%
Microsoft Corporation 116,980 2,995,858
Computer Software -
Education/Entertainment 1.0%
Electronic Arts, Inc. (b) 10,300 762,097
Computer Software - Enterprise 3.8%
VERITAS Software Corporation (b) 98,300 2,818,261
Computer Software - Security 1.9%
Symantec Corporation (b) 32,000 1,403,520
Diversified Operations 10.4%
AOL Time Warner, Inc. (b) 201,550 3,242,939
Tyco International, Ltd. 232,280 4,408,674
---------------
7,651,613
Electronics - Semiconductor Manufacturing 7.1%
Intel Corporation 188,600 3,919,862
Maxim Integrated Products, Inc. 37,000 1,265,030
---------------
5,184,892
Finance - Consumer/Commercial Loans 1.0%
SLM Corporation 18,450 722,686
Financial Services - Miscellaneous 3.0%
First Data Corporation 52,695 2,183,681
Household - Audio/Video 2.1%
Harman International Industries, Inc. 19,265 1,524,632
Insurance - Diversified 2.1%
American International Group, Inc. 27,440 1,514,139
Internet - E*Commerce 2.2%
eBay, Inc. (b) 15,800 1,646,044
Internet- Internet Service Provider/Content 3.3%
Yahoo! Inc. (b) 73,810 2,418,016
Leisure - Services 8.5%
The Walt Disney Company 51,095 1,009,126
Royal Caribbean Cruises, Ltd. 227,600 5,271,216
---------------
6,280,342
Media - Cable TV 1.5%
EchoStar Communications Corporation
Class A (b) 31,820 1,101,608
Media - Newspapers 2.4%
The E.W. Scripps Company Class A 19,640 1,742,461
Media - Radio/TV 1.6%
Viacom, Inc. Class B (b) 26,410 1,153,061
Medical - Biomedical/Genetics 3.4%
Amgen, Inc. (b) 21,130 1,403,877
IDEC Pharmaceuticals Corporation (b) 31,800 1,081,200
---------------
2,485,077
Medical - Drug/Diversified 2.5%
Johnson & Johnson 35,555 1,838,194
Medical - Ethical Drugs 6.3%
Pfizer, Inc. 134,695 4,599,834
Medical - Generic Drugs 1.1%
Teva Pharmaceutical Industries, Ltd. ADR 14,030 798,728
Medical - Health Maintenance Organizations 3.3%
Anthem, Inc. (b) 31,480 2,428,682
Medical - Hospitals 1.2%
Community Health Systems, Inc. (b) 46,010 893,974
Medical - Products 1.0%
Baxter International, Inc. 29,200 759,200
Oil & Gas - Drilling 2.8%
ENSCO International, Inc. 27,460 738,674
Transocean, Inc. (b) 58,400 1,283,048
---------------
2,021,722
Retail/Wholesale - Auto Parts 1.4%
AutoZone, Inc. (b) 13,080 993,688
Retail/Wholesale - Building Products 2.0%
Lowe's Companies, Inc. 34,200 1,468,890
Telecommunications - Equipment 3.9%
Alcatel SA ADR (b) 211,800 1,895,610
Nokia Corporation Sponsored ADR 59,500 977,585
---------------
2,873,195
Trucks & Parts - Heavy Duty 1.0%
Navistar International Corporation (b) 22,500 734,175
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $65,563,740) 72,191,607
- -------------------------------------------------------------------------------
41
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
STRONG ADVISOR SELECT FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Short-Term Investments (a) 0.8%
Repurchase Agreements
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds $607,313);
Collateralized by: United States Government
& Agency Issues (c) $ 607,300 $ 607,300
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $607,300) 607,300
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $66,171,040) 99.2% 72,798,907
Other Assets and Liabilities, Net 0.8% 607,000
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 73,405,907
===============================================================================
STRONG ADVISOR TECHNOLOGY FUND
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Common Stocks 91.6%
Commercial Services - Security/Safety 3.7%
I.D. Systems, Inc. (b) 4,300 $ 34,400
Mine Safety Appliances Company 1,000 43,620
---------------
78,020
Computer - Graphics 2.5%
Magma Design Automation (b) 1,700 29,155
Nassda Corporation (b) 1,900 14,668
Verisity, Ltd. (b) 800 9,552
---------------
53,375
Computer - Integrated Systems 1.8%
National Instruments Corporation (b) 1,000 37,780
Computer - Local Networks 3.2%
Brocade Communications Systems, Inc. (b) 6,400 37,696
Cisco Systems, Inc. (b) 1,800 30,042
---------------
67,738
Computer - Manufacturers 3.2%
Dell, Inc. (b) 2,100 67,116
Computer - Memory Devices 4.3%
Seagate Technology 2,600 45,890
TDK Corporation Sponsored ADR 900 44,190
---------------
90,080
Computer - Peripheral Equipment 2.0%
Sigma Designs, Inc. (b) 3,800 41,458
Computer - Services 1.8%
Computer Sciences Corporation (b) 1,000 38,120
Computer Software - Desktop 1.7%
Microsoft Corporation 1,400 35,854
Computer Software - Enterprise 4.3%
NMS Communications Corporation (b) 20,900 41,194
Nuance Communications, Inc. (b) 9,000 48,600
---------------
89,794
Computer Software - Financial 6.7%
DST Systems, Inc. (b) 1,750 66,500
Intercept Group, Inc. (b) 8,900 74,404
---------------
140,904
Computer Software - Security 3.9%
Netscreen Technologies, Inc. (b) 1,600 36,080
VeriSign, Inc. (b) 3,300 45,639
---------------
81,719
Electrical - Connectors 2.7%
II-VI, Inc. (b) 2,500 57,700
Electronics - Measuring Instruments 1.3%
FEI Company (b) 1,500 28,140
Electronics - Semiconductor Equipment 8.9%
ASM International NV (b) 4,000 59,480
ChipPAC, Inc. Class A (b) 5,900 45,253
Genus, Inc. (b) 11,300 30,510
LogicVision, Inc. (b) 2,000 5,980
Photronics, Inc. (b) 2,700 47,115
---------------
188,338
Electronics - Semiconductor Manufacturing 11.4%
ARM Holdings PLC Sponsored ADR (b) 4,000 13,640
Intel Corporation 2,400 49,882
Linear Technology Corporation 2,550 82,135
Marvell Technology Group, Ltd. (b) 1,600 54,992
Xilinx, Inc. (b) 1,600 40,496
---------------
241,145
Electronics Products - Miscellaneous 1.6%
Metrologic Instruments, Inc. (b) 1,000 33,250
Internet - E*Commerce 3.0%
eBay, Inc. (b) 600 62,508
Internet - Software 1.8%
BEA Systems, Inc. (b) 2,000 21,720
Embarcadero Technologies, Inc. (b) 2,300 16,100
---------------
37,820
Medical - Biomedical/Genetics 12.5%
Affymetrix, Inc. (b) 2,500 49,275
Amgen, Inc. (b) 600 39,864
Diversa Corporation (b) 2,200 21,626
Gen-Probe, Inc. (b) 1,000 40,870
Genencor International, Inc. (b) 3,100 51,057
Martek Biosciences Corporation (b) 500 21,470
Maxygen, Inc. (b) 3,700 40,589
---------------
264,751
Medical - Instruments 2.9%
Intuitive Surgical, Inc. (b) 8,200 62,238
Medical - Products 1.8%
Amersham PLC Sponsored ADR 1,000 38,400
Oil & Gas - Machinery/Equipment 1.2%
FMC Technologies, Inc. (b) 1,200 25,260
Telecommunications - Equipment 3.4%
Nokia Corporation Sponsored ADR 1,600 26,288
Trimble Navigation, Ltd. (b) 2,000 45,860
---------------
72,148
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $1,727,933) 1,933,656
- -------------------------------------------------------------------------------
Short-Term Investments (a) 7.8%
Repurchase Agreements
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds $165,403);
Collateralized by: United States Government
& Agency Issues (c) $ 165,400 165,400
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $165,400) 165,400
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $1,893,333) 99.4% 2,099,056
Other Assets and Liabilities, Net 0.6% 11,628
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 2,110,684
===============================================================================
42
- --------------------------------------------------------------------------------
STRONG ADVISOR U.S. SMALL/MID CAP GROWTH FUND
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Common Stocks 99.1%
Building - Resident/Commercial 1.9%
Meritage Corporation (b) 620 $ 30,541
Commercial Services - Business Services 2.4%
Coast Dental Services, Inc. (b) 7,860 39,300
Commercial Services - Schools 3.2%
Career Education Corporation (b) 246 16,831
Corinthian Colleges, Inc. (b) 730 35,456
---------------
52,287
Computer - Graphics 1.3%
Magma Design Automation (b) 1,250 21,437
Computer - Local Networks 3.4%
Extreme Networks, Inc. (b) 4,865 25,784
Foundry Networks, Inc. (b) 2,110 30,384
---------------
56,168
Computer - Memory Devices 2.2%
Network Appliance, Inc. (b) 2,240 36,310
Computer - Services 1.5%
Cognizant Technology Solutions Corporation (b) 1,025 24,969
Computer Software - Enterprise 3.6%
SERENA Software, Inc. (b) 585 12,215
Trident Microsystems, Inc. (b) 5,225 47,548
---------------
59,763
Computer Software - Medical 1.2%
eResearch Technology, Inc. (b) 890 19,883
Computer Software - Security 2.2%
Netscreen Technologies, Inc. (b) 1,615 36,418
Electronics - Semiconductor Equipment 2.0%
Cabot Microelectronics Corporation (b) 640 32,301
Electronics - Semiconductor Manufacturing 11.0%
GlobespanVirata, Inc. (b) 5,465 45,086
Integrated Circuit Systems, Inc. (b) 1,115 35,044
OmniVision Technologies, Inc. (b) 1,190 37,128
Power Integrations, Inc. (b) 990 24,077
Zoran Corporation (b) 2,090 40,149
---------------
181,484
Electronics Products - Miscellaneous 2.0%
Applied Films Corporation (b) 1,285 33,256
Finance - Consumer/Commercial Loans 0.7%
Portfolio Recovery Associates, Inc. (b) 380 11,708
Finance - Mortgage & Related Services 3.4%
United Panam Financial Corporation (b) 4,610 56,426
Financial Services - Miscellaneous 1.5%
Investors Financial Services Corporation 870 25,239
Internet - E*Commerce 9.3%
Getty Images, Inc. (b) 305 12,596
InterActiveCorp (b) 1,238 48,988
Netflix, Inc. (b) 2,230 56,977
University of Phoenix Online (b) 680 34,476
---------------
153,037
Internet - Internet Service
Provider/Content 1.2%
j2 Global Communications, Inc. (b) 440 20,240
Internet - Software 2.0%
United Online, Inc. (b) 1,275 32,309
Leisure - Photo Equipment/Related 1.0%
Lexar Media, Inc. (b) 1,755 16,602
Leisure - Toys/Games/Hobby 3.7%
Leapfrog Enterprises, Inc. Class A (b) 1,175 37,377
Marvel Enterprises, Inc. (b) 1,235 23,588
---------------
60,965
Medical - Biomedical/Genetics 3.9%
Aphton Corporation (b) 2,230 18,397
CV Therapeutics, Inc. (b) 1,510 44,787
---------------
63,184
Medical - Generic Drugs 2.5%
Andrx Group (b) 2,100 41,790
Medical - Nursing Homes 3.5%
Odyssey Healthcare, Inc. (b) 1,025 37,925
VistaCare, Inc. Class A (b) 775 18,840
---------------
56,765
Medical - Products 6.7%
Cyberonics, Inc. (b) 2,215 47,645
STAAR Surgical Company (b) 5,450 63,220
---------------
110,865
Medical/Dental - Services 2.5%
Enzo Biochem, Inc. (b) 1,900 40,888
Oil & Gas - Drilling 1.3%
Unit Corporation (b) 985 20,596
Oil & Gas - United States Exploration &
Production 2.2%
Evergreen Resources, Inc. (b) 420 22,810
Spinnaker Exploration Company (b) 500 13,100
---------------
35,910
Retail - Apparel/Shoe 3.2%
Chicos FAS, Inc. (b) 695 14,630
Hot Topic, Inc. (b) 900 24,219
Pacific Sunwear of California (b) 562 13,539
---------------
52,388
Retail - Discount & Variety 1.0%
Fred's, Inc. 420 15,616
Retail - Restaurants 5.0%
The Cheesecake Factory, Inc. (b) 915 32,839
P.F. Chang's China Bistro, Inc. (b) 750 36,908
Panera Bread Company Class A (b) 330 13,200
---------------
82,947
Telecommunications - Cellular 3.6%
Alamosa Holdings, Inc. (b) 19,615 30,011
Nextel Communications, Inc. Class A (b) 1,620 29,290
---------------
59,301
Transportation - Truck 3.0%
J.B. Hunt Transport Services, Inc. (b) 575 21,706
Knight Transportation, Inc. (b) 1,105 27,514
---------------
49,220
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $1,286,880) 1,630,113
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $1,286,880) 99.1% 1,630,113
Other Assets and Liabilities, Net 0.9% 14,764
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 1,644,877
===============================================================================
43
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
STRONG ADVISOR UTILITIES AND ENERGY FUND
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Common Stocks 90.0%
Chemicals - Specialty 2.1%
Ashland, Inc. 11,000 $ 337,480
Oil & Gas - Canadian Integrated 1.0%
Imperial Oil, Ltd. 4,500 157,140
Oil & Gas - Drilling 1.5%
Diamond Offshore Drilling, Inc. 11,500 241,385
Oil & Gas - Field Services 1.5%
Halliburton Company 10,300 236,900
Oil & Gas - International Integrated 16.2%
BP PLC Sponsored ADR 3,800 159,676
ChevronTexaco Corporation 10,000 722,000
ConocoPhillips 7,500 411,000
Exxon Mobil Corporation 8,000 287,280
Murphy Oil Corporation 3,500 184,100
Royal Dutch Petroleum Company 16,700 778,554
---------------
2,542,610
Oil & Gas - Machinery/Equipment 0.9%
Smith International, Inc. (b) 4,000 146,960
Oil & Gas - United States Exploration &
Production 4.2%
Anadarko Petroleum Corporation 9,000 400,230
Devon Energy Corporation 5,000 267,000
---------------
667,230
Oil & Gas - United States Integrated 2.0%
El Paso Corporation 9,000 72,720
Questar Corporation 7,000 234,290
---------------
307,010
Telecommunications - Services 12.8%
ALLTEL Corporation 10,000 482,200
BellSouth Corporation 16,900 450,047
CenturyTel, Inc. 3,000 104,550
SBC Communications, Inc. 5,000 127,750
Verizon Communications, Inc. 21,500 848,175
---------------
2,012,722
Utility - Electric Power 32.7%
Ameren Corporation 7,500 330,750
Calpine Corporation (b) 24,000 158,400
Cleco Corporation 8,500 147,220
Constellation Energy Group, Inc. 28,500 977,550
Dominion Resources, Inc. 12,000 771,240
Duke Energy Corporation 2,000 39,900
Exelon Corporation 12,500 747,625
FPL Group, Inc. 11,000 735,350
FirstEnergy Corporation 20,000 769,000
Great Plains Energy, Inc. 6,000 173,280
Public Service Enterprise Group, Inc. 7,000 295,750
---------------
5,146,065
Utility - Gas Distribution 13.4%
Energen Corporation 2,000 66,600
Equitable Resources, Inc. 8,000 325,920
National Fuel Gas Company 1,000 26,050
ONEOK, Inc. 40,000 785,200
Sempra Energy 11,000 313,830
South Jersey Industries, Inc. 10,500 386,925
UGI Corporation 5,000 158,500
Vectren Corporation 1,500 37,575
---------------
2,100,600
Utility - Telephone 1.7%
BCE, Inc. 11,500 265,765
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $13,104,074) 14,161,867
- -------------------------------------------------------------------------------
Short-Term Investments (a) 11.0%
Repurchase Agreements
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds
$1,734,936); Collateralized by: United
States Government & Agency Issues (c) $ 1,734,900 1,734,900
- -------------------------------------------------------------------------------
Total Short-Term Investments
(Cost $1,734,900) 1,734,900
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $14,838,974) 101.0% 15,896,767
Other Assets & Liabilities, Net (1.0%) (163,056)
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 15,733,711
===============================================================================
STRONG ADVISOR LARGE COMPANY CORE FUND
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Common Stocks 89.8%
Banks - Money Center 7.3%
Bank of America Corporation 20,800 $ 1,643,824
Citigroup, Inc. 42,800 1,831,840
J.P. Morgan Chase & Company 33,500 1,145,030
---------------
4,620,694
Banks - Super Regional 2.1%
Wells Fargo Company 26,700 1,345,680
Beverages - Alcoholic 2.0%
Anheuser-Busch Companies, Inc. 24,800 1,266,040
Computer - Local Networks 1.9%
Cisco Systems, Inc. (b) 72,000 1,201,680
Computer - Manufacturers 1.3%
Dell, Inc. (b) 25,800 824,568
Computer - Services 3.1%
Amdocs, Ltd. (b) 40,000 960,000
International Business Machines Corporation 12,500 1,031,250
---------------
1,991,250
Computer Software - Desktop 2.8%
Microsoft Corporation 70,400 1,802,944
Computer Software - Enterprise 1.9%
Oracle Systems Corporation (b) 100,000 1,202,000
Cosmetics - Personal Care 1.9%
Colgate Palmolive Company 20,650 1,196,667
Diversified Operations 4.9%
General Electric Company 71,050 2,037,714
3M Co. 8,400 1,083,432
---------------
3,121,146
Electronics - Military Systems 1.6%
L-3 Communications Corporation (b) 24,000 1,043,760
Electronics - Parts Distributors 1.8%
W.W. Grainger, Inc. 24,300 1,136,268
44
- --------------------------------------------------------------------------------
STRONG ADVISOR LARGE COMPANY CORE FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- --------------------------------------------------------------------------------
Electronics - Semiconductor Manufacturing 3.7%
Intel Corporation 54,000 $ 1,122,336
Linear Technology Corporation 37,700 1,214,317
---------------
2,336,653
Finance - Investment Brokers 2.5%
The Goldman Sachs Group, Inc. 12,100 1,013,375
Lehman Brothers Holdings, Inc. 8,750 581,700
---------------
1,595,075
Finance - Publicly Traded Investment
Funds - Equity 1.2%
iShares Goldman Sachs Networking Index Fund 39,300 761,634
Finance - Publicly Traded Investment
Funds - Equity (Non 40 Act) 1.0%
Standard & Poors Depositary Receipt Trust
Unit Series 1 6,450 629,197
Financial Services - Miscellaneous 1.7%
American Express Company 26,100 1,091,241
Food - Dairy Products 2.3%
Dean Foods Company (b) 46,150 1,453,725
Food - Miscellaneous Preparation 2.9%
PepsiCo, Inc. 40,685 1,810,482
Insurance - Diversified 2.4%
American International Group, Inc. 27,800 1,534,004
Internet - E*Commerce 1.6%
InterActiveCorp (b) 26,100 1,032,777
Media - Cable TV 1.7%
Comcast Corporation Class A (b) 36,000 1,086,480
Media - Radio/TV 2.1%
Viacom, Inc. Class B (b) 30,000 1,309,800
Medical - Biomedical/Genetics 2.2%
Amgen, Inc. (b) 21,400 1,421,816
Medical - Drug/Diversified 1.5%
Johnson & Johnson 18,434 953,038
Medical - Ethical Drugs 4.9%
Pfizer, Inc. 54,170 1,849,906
Wyeth 27,500 1,252,625
---------------
3,102,531
Medical - Generic Drugs 4.7%
Barr Laboratories, Inc. (b) 19,000 1,244,500
Teva Pharmaceutical Industries, Ltd. ADR 30,700 1,747,751
---------------
2,992,251
Medical - Products 1.4%
Medtronic, Inc. 18,000 863,460
Metal Ores - Gold/Silver 2.7%
Newmont Mining Corporation Holding Company 51,800 1,681,428
Metal Products - Fasteners 1.9%
Illinois Tool Works, Inc. 18,350 1,208,348
Oil & Gas - International Integrated 4.3%
BP PLC Sponsored ADR 31,600 1,327,832
Exxon Mobil Corporation 39,748 1,427,351
---------------
2,755,183
Oil & Gas - United States Exploration
& Production 1.3%
Devon Energy Corporation 15,808 844,147
Retail - Major Discount Chains 2.4%
Wal-Mart Stores, Inc. 28,100 1,508,127
Retail/Wholesale - Building Products 1.8%
Lowe's Companies, Inc. 27,000 1,159,650
Retail/Wholesale - Jewelry 2.0%
Tiffany & Company 39,000 1,274,520
Telecommunications - Services 1.8%
AT&T Corporation 60,500 1,164,625
Utility - Electric Power 1.2%
The AES Corporation (b) 114,000 723,900
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $53,362,789) 57,046,789
- -------------------------------------------------------------------------------
Convertible Corporate Notes 1.7%
Media - Radio/TV
Sirius Satellite Radio, Inc. Notes, 3.50%,
Due 6/01/08 $ 736,000 1,059,840
- -------------------------------------------------------------------------------
Total Convertible Corporate Notes
(Cost $768,125) 1,059,840
- -------------------------------------------------------------------------------
Convertible Preferred Stocks 7.7%
Finance - Savings & Loan 2.2%
Washington Mutual, Inc. 5.375% 23,100 1,368,675
Insurance - Diversified 1.8%
Prudential Financial, Inc. 6.75% 20,400 1,142,400
Telecommunications - Services 2.0%
Alltel Corporation 7.75% 25,400 1,263,650
Utility - Electric Power 1.7%
FPL Group, Inc. 8.50% 18,900 1,126,913
- -------------------------------------------------------------------------------
Total Convertible Preferred Stocks
(Cost $4,666,496) 4,901,638
- -------------------------------------------------------------------------------
Short-Term Investments (a) 0.7%
Repurchase Agreements
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds $478,710);
Collateralized by: United States
Government & Agency Issues (c) $ 478,700 478,700
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $478,700) 478,700
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $59,276,110) 99.9% 63,486,967
Other Assets and Liabilities, Net 0.1% 51,616
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 63,538,583
===============================================================================
LEGEND
- --------------------------------------------------------------------------------
(a) Short-term investments include any security which has a remaining maturity
of less than one year and investments in money market funds.
(b) Non-income producing security.
(c) See Note 2(J) of Notes to Financial Statements.
(d) Affiliated Issuer (See Note 7 of Notes to Financial Statements.)
(e) All or a portion of these securities are held in conjuction with open
written option contracts.
(f) See Note 2(M) of Notes to Financial Statements.
Percentages are stated as a percent of net assets.
See Notes to Financial Statements.
45
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
(In Thousands)
Strong Advisor Strong Advisor Strong Advisor
Common Mid Cap Small Cap
Stock Fund Growth Fund Value Fund
-------------- -------------- --------------
Assets:
Investments in Securities, at Value
(Including Repurchase Agreements of
$190,259, $2,398 and $140,352, respectively)
Unaffiliated Issuers (Cost of $1,448,959,
$80,093 and $1,100,656, respectively) $ 1,688,826 $ 94,852 $ 1,220,228
Affiliated Issuers
(Cost of $6,109, $0 and $220,753,
respectively) 17,703 -- 282,546
Receivable for Securities Sold 4,193 3,228 5,682
Receivable for Fund Shares Sold 460 13 2,066
Dividends and Interest Receivable 542 17 194
Other Assets 100 39 104
-------------- -------------- --------------
Total Assets 1,711,824 98,149 1,510,820
Liabilities:
Payable for Securities Purchased 9,818 2,196 8,246
Written Options, at Value (Premiums
Received of $1,761, $0 and $3,276,
respectively) 10 -- 3,415
Payable for Fund Shares Redeemed 1,429 656 883
Payable Upon Return of Securities on Loan 68,984 2,660 --
Accrued Operating Expenses and Other
Liabilities 670 86 406
-------------- -------------- --------------
Total Liabilities 80,911 5,598 12,950
-------------- -------------- --------------
Net Assets $ 1,630,913 $ 92,551 $ 1,497,870
============== ============== ==============
Net Assets Consist of:
Capital Stock (Par Value and Paid-in
Capital) $ 1,592,958 $ 206,097 $ 1,314,653
Undistributed Net Investment Income (Loss) (3,198) (623) (4,749)
Undistributed Net Realized Gain (Loss) (212,060) (127,682) 6,740
Net Unrealized Appreciation (Depreciation) 253,213 14,759 181,226
-------------- -------------- --------------
Net Assets $ 1,630,913 $ 92,551 $ 1,497,870
============== ============== ==============
See Notes to Financial Statements.
46
STATEMENTS OF ASSETS AND LIABILITIES (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
Strong Advisor Strong Advisor Strong Advisor
Common Mid Cap Small Cap
Stock Fund Growth Fund Value Fund
--------------- -------------- --------------
Class A ($ and shares in full)
Net Assets $ 61,234,607 $ 9,446,997 $ 448,717,723
Capital Shares Outstanding (Unlimited
Number Authorized) 3,305,594 897,230 20,764,485
Net Asset Value Per Share $ 18.52 $ 10.53 $ 21.61
=============== ============== ==============
Public Offering Price Per Share
($18.52 divided by .9425, $10.53 divided by
.9425 and $21.61 divided by .9425,
respectively) $ 19.65 $ 11.17 $ 22.93
=============== ============== ==============
Class B ($ and shares in full)
Net Assets $ 30,941,564 $ 2,834,337 $ 94,160,431
Capital Shares Outstanding (Unlimited
Number Authorized) 1,698,152 274,055 4,436,321
Net Asset Value Per Share $ 18.22 $ 10.34 $ 21.22
=============== ============== ==============
Class C ($ and shares in full)
Net Assets $ 27,629,360 $ 979,310 $ 125,489,880
Capital Shares Outstanding (Unlimited
Number Authorized) 1,516,273 94,712 5,903,914
Net Asset Value Per Share $ 18.22 $ 10.34 $ 21.26
=============== ============== ==============
Class Z ($ and shares in full)
Net Assets $ 1,511,107,878 $ 79,289,962 $ 829,501,946
Capital Shares Outstanding (Unlimited
Number Authorized) 81,016,539 7,550,016 38,229,401
Net Asset Value Per Share $ 18.65 $ 10.50 $ 21.70
=============== ============== ==============
See Notes to Financial Statements.
47
STATEMENTS OF ASSETS AND LIABILITIES (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
(In Thousands)
Strong Advisor
U.S. Value Fund
---------------
Assets:
Investments in Securities, at Value (Cost of $214,040) $ 235,505
Receivable for Securities Sold 556
Receivable for Fund Shares Sold 9
Dividends and Interest Receivable 325
Other Assets 37
---------------
Total Assets 236,432
Liabilities:
Payable for Securities Purchased 1,006
Payable for Fund Shares Redeemed 9
Payable Upon Return of Securities on Loan 15,847
Accrued Operating Expenses and Other Liabilities 153
---------------
Total Liabilities 17,015
---------------
Net Assets $ 219,417
===============
Net Assets Consist of:
Capital Stock (Par Value and Paid-in Capital) $ 212,781
Undistributed Net Investment Income (Loss) 22
Undistributed Net Realized Gain (Loss) (14,851)
Net Unrealized Appreciation (Depreciation) 21,465
---------------
Net Assets $ 219,417
===============
See Notes to Financial Statements.
48
STATEMENTS OF ASSETS AND LIABILITIES (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
Strong Advisor
U.S. Value Fund
---------------
Class A ($ and shares in full)
Net Assets $ 3,213,874
Capital Shares Outstanding (Unlimited Number Authorized) 211,666
Net Asset Value Per Share $ 15.18
===============
Public Offering Price Per Share ($15.18 divided by
.9425) $ 16.11
===============
Class B ($ and shares in full)
Net Assets $ 3,527,020
Capital Shares Outstanding (Unlimited Number Authorized) 232,257
Net Asset Value Per Share $ 15.19
===============
Class C ($ and shares in full)
Net Assets $ 1,865,572
Capital Shares Outstanding (Unlimited Number Authorized) 123,321
Net Asset Value Per Share $ 15.13
===============
Class K ($ and shares in full)
Net Assets $ 13,938,352
Capital Shares Outstanding (Unlimited Number Authorized) 924,483
Net Asset Value Per Share $ 15.08
===============
Class Z ($ and shares in full)
Net Assets $ 196,871,892
Capital Shares Outstanding (Unlimited Number Authorized) 12,886,226
Net Asset Value Per Share $ 15.28
===============
See Notes to Financial Statements.
49
STATEMENTS OF ASSETS AND LIABILITIES (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
(In Thousands, Except As Noted)
Strong Advisor Strong Advisor
Endeavor Large Strong Advisor International
Cap Fund Focus Fund Core Fund
--------------- -------------- --------------
Assets:
Investments in Securities, at Value (Including
Repurchase Agreements of $180, $195 and $146,
respectively) (Cost of $31,660, $3,187 and
$1,077, respectively) $ 35,105 $ 3,691 $ 1,151
Receivable for Fund Shares Sold -- -- 68
Dividends and Interest Receivable 7 2 4
Other Assets 11 9 8
--------------- -------------- --------------
Total Assets 35,123 3,702 1,231
Liabilities:
Payable for Securities Purchased 121 52 70
Payable for Fund Shares Redeemed -- 5 --
Accrued Operating Expenses and Other
Liabilities 21 14 7
--------------- -------------- --------------
Total Liabilities 142 71 77
--------------- -------------- --------------
Net Assets $ 34,981 $ 3,631 $ 1,154
=============== ============== ==============
Net Assets Consist of:
Capital Stock (Par Value and Paid-in Capital) $ 40,630 $ 8,028 $ 1,123
Undistributed Net Investment Income (Loss) (133) (26) 12
Undistributed Net Realized Gain (Loss) (8,960) (4,875) (56)
Net Unrealized Appreciation (Depreciation) 3,444 504 75
--------------- -------------- --------------
Net Assets $ 34,981 $ 3,631 $ 1,154
=============== ============== ==============
Class A ($ and shares in full)
Net Assets $ 34,132,499 $ 2,045,466 $ 424,257
Capital Shares Outstanding (Unlimited Number
Authorized) 3,963,423 393,663 44,117
Net Asset Value Per Share $ 8.61 $ 5.20 $ 9.62
=============== ============== ==============
Public Offering Price Per Share
($8.61 divided by .9425, $5.20 divided by
.9425 and $9.62 divided by .9425,
respectively) $ 9.14 $ 5.52 $ 10.21
=============== ============== ==============
Class B ($ and shares in full)
Net Assets $ 532,609 $ 1,232,077 $ 554,176
Capital Shares Outstanding (Unlimited Number
Authorized) 62,426 241,068 57,736
Net Asset Value Per Share $ 8.53 $ 5.11 $ 9.60
=============== ============== ==============
Class C ($ and shares in full)
Net Assets $ 315,445 $ 353,914 $ 175,729
Capital Shares Outstanding (Unlimited Number
Authorized) 36,962 69,258 18,319
Net Asset Value Per Share $ 8.53 $ 5.11 $ 9.59
=============== ============== ==============
See Notes to Financial Statements.
50
STATEMENTS OF ASSETS AND LIABILITIES (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
(In Thousands, Except As Noted)
Strong Advisor Strong Advisor
Strong Advisor Technology U.S. Small/Mid Cap
Select Fund Fund Growth Fund
--------------- -------------- ------------------
Assets:
Investments in Securities, at Value (Cost of
$66,171, $1,893 and $1,287, respectively) $ 72,799 $ 2,099 $ 1,630
Receivable for Securities Sold 1,999 51 18
Receivable for Fund Shares Sold -- -- 1
Dividends and Interest Receivable 4 -- --
Other Assets 11 11 19
--------------- -------------- ------------------
Total Assets 74,813 2,161 1,668
Liabilities:
Payable for Securities Purchased 1,366 42 15
Payable for Fund Shares Redeemed -- 4 --
Accrued Operating Expenses and Other
Liabilities 41 4 8
--------------- -------------- ------------------
Total Liabilities 1,407 50 23
--------------- -------------- ------------------
Net Assets $ 73,406 $ 2,111 $ 1,645
=============== ============== ==================
Net Assets Consist of:
Capital Stock (Par Value and Paid-in Capital) $ 80,747 $ 3,280 $ 1,526
Undistributed Net Investment Income (Loss) (325) (16) (12)
Undistributed Net Realized Gain (Loss) (13,644) (1,359) (212)
Net Unrealized Appreciation (Depreciation) 6,628 206 343
--------------- -------------- ------------------
Net Assets $ 73,406 $ 2,111 $ 1,645
=============== ============== ==================
Class A ($ and shares in full)
Net Assets $ 72,607,944 $ 1,596,229 $ 565,753
Capital Shares Outstanding (Unlimited Number
Authorized) 10,621,516 284,408 62,412
Net Asset Value Per Share $ 6.84 $ 5.61 $ 9.06
=============== ============== ==================
Public Offering Price Per Share ($6.84 divided
by .9425, $5.61 divided by .9425 and
$9.06 divided by .9425, respectively) $ 7.26 $ 5.95 $ 9.61
=============== ============== ==================
Class B ($ and shares in full)
Net Assets $ 473,462 $ 228,055 $ 524,990
Capital Shares Outstanding (Unlimited Number
Authorized) 70,519 41,230 57,929
Net Asset Value Per Share $ 6.71 $ 5.53 $ 9.06
=============== ============== ==================
Class C ($ and shares in full)
Net Assets $ 324,501 $ 286,400 $ 554,134
Capital Shares Outstanding (Unlimited Number
Authorized) 48,305 51,929 61,124
Net Asset Value Per Share $ 6.72 $ 5.52 $ 9.07
=============== ============== ==================
See Notes to Financial Statements.
51
STATEMENTS OF ASSETS AND LIABILITIES (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
(In Thousands,
Except As Noted)
Strong Advisor
Utilities and
Energy Fund
----------------
Assets:
Investments in Securities, at Value (Including
Repurchase Agreements of $1,735) (Cost of
$14,839) $ 15,897
Receivable for Securities Sold 26
Receivable for Fund Shares Sold 64
Dividends and Interest Receivable 22
Other Assets 15
----------------
Total Assets 16,024
Liabilities:
Payable for Securities Purchased 229
Payable for Fund Shares Redeemed 47
Accrued Operating Expenses and Other Liabilities 14
----------------
Total Liabilities 290
----------------
Net Assets $ 15,734
================
Net Assets Consist of:
Capital Stock (Par Value and Paid-in Capital) $ 15,500
Undistributed Net Investment Income (Loss) 6
Undistributed Net Realized Gain (Loss) (830)
Net Unrealized Appreciation (Depreciation) 1,058
----------------
Net Assets $ 15,734
================
Class A ($ and shares in full)
Net Assets $ 15,356,598
Capital Shares Outstanding (Unlimited Number Authorized) 1,562,844
Net Asset Value Per Share $ 9.83
================
Public Offering Price Per Share ($9.83 divided by .9425) $ 10.43
================
Class B ($ and shares in full)
Net Assets $ 127,815
Capital Shares Outstanding (Unlimited Number Authorized) 12,978
Net Asset Value Per Share $ 9.85
================
Class C ($ and shares in full)
Net Assets $ 249,298
Capital Shares Outstanding (Unlimited Number Authorized) 25,366
Net Asset Value Per Share $ 9.83
================
See Notes to Financial Statements.
52
STATEMENTS OF ASSETS AND LIABILITIES (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
(In Thousands,
Except As Noted)
Strong Advisor
Large Company
Core Fund
----------------
Assets:
Investments in Securities, at Value (Cost of $59,276) $ 63,487
Receivable for Securities Sold 310
Receivable for Fund Shares Sold 586
Dividends and Interest Receivable 38
Other Assets 96
----------------
Total Assets 64,517
Liabilities:
Payable for Securities Purchased 924
Payable for Fund Shares Redeemed 1
Accrued Operating Expenses and Other Liabilities 53
----------------
Total Liabilities 978
----------------
Net Assets $ 63,539
================
Net Assets Consist of:
Capital Stock (Par Value and Paid-in Capital) $ 60,620
Undistributed Net Investment Income (Loss) 24
Undistributed Net Realized Gain (Loss) (1,316)
Net Unrealized Appreciation (Depreciation) 4,211
----------------
Net Assets $ 63,539
================
Class A ($ and shares in full)
Net Assets $ 37,716,555
Capital Shares Outstanding (Unlimited Number Authorized) 3,903,137
Net Asset Value Per Share $ 9.66
================
Public Offering Price Per Share ($9.66 divided by .9425) $ 10.25
================
Class B ($ and shares in full)
Net Assets $ 4,232,603
Capital Shares Outstanding (Unlimited Number Authorized) 440,764
Net Asset Value Per Share $ 9.60
================
Class C ($ and shares in full)
Net Assets $ 3,537,721
Capital Shares Outstanding (Unlimited Number Authorized) 368,416
Net Asset Value Per Share $ 9.60
================
Class K ($ and shares in full)
Net Assets $ 18,051,704
Capital Shares Outstanding (Unlimited Number Authorized) 1,866,947
Net Asset Value Per Share $ 9.67
================
See Notes to Financial Statements.
53
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
For the Six Months Ended June 30, 2003 (Unaudited)
(In Thousands)
Strong Advisor Strong Advisor Strong Advisor Strong Advisor
Common Stock Mid Cap Growth Small Cap U.S. Value
Fund Fund Value Fund Fund
--------------- --------------- --------------- ---------------
Income:
Dividends - Unaffiliated Issuers (net
of foreign withholding taxes of
$77, $3, $110 and $0, respectively) $ 6,281 $ 107 $ 3,590 $ 2,244
Dividends - Affiliated Issuers 619 -- 395 --
Interest 315 18 199 28
--------------- --------------- --------------- ---------------
Total Income 7,215 125 4,184 2,272
Expenses (Note 4):
Investment Advisory Fees 5,402 309 4,595 534
Administrative Fees 2,164 123 1,840 288
Custodian Fees 42 15 76 5
Shareholder Servicing Costs 2,063 227 1,623 656
Reports to Shareholders 255 50 107 113
12b-1 Fees 313 28 1,366 27
Other 203 44 178 71
--------------- --------------- --------------- ---------------
Total Expenses before Expense Offsets 10,442 796 9,785 1,694
Expense Offsets (29) (48) (59) (23)
--------------- --------------- --------------- ---------------
Expenses, Net 10,413 748 9,726 1,671
--------------- --------------- --------------- ---------------
Net Investment Income (Loss) (3,198) (623) (5,542) 601
Realized and Unrealized Gain (Loss):
Net Realized Gain (Loss) on:
Investments (24,753) 1,302 26,530 1,501
Foreign Currencies (7) -- -- --
Futures Contracts -- 947 -- --
Written Options 3,549 -- 446 --
--------------- --------------- --------------- ---------------
Net Realized Gain (Loss) (21,211) 2,249 26,976 1,501
Net Change in Unrealized
Appreciation/Depreciation on:
Investments 259,795 14,557 159,779 22,732
Written Options (238) -- (757) --
--------------- --------------- --------------- ---------------
Net Change in Unrealized
Appreciation/Depreciation 259,557 14,557 159,022 22,732
--------------- --------------- --------------- ---------------
Net Gain (Loss) on Investments 238,346 16,806 185,998 24,233
--------------- --------------- --------------- ---------------
Net Increase (Decrease) in Net Assets
Resulting from Operations $ 235,148 $ 16,183 $ 180,456 $ 24,834
=============== =============== =============== ===============
See Notes to Financial Statements.
54
STATEMENTS OF OPERATIONS (continued)
- --------------------------------------------------------------------------------
For the Six Months Ended June 30, 2003 (Unaudited)
(In Thousands)
Strong Advisor Strong Advisor
Endeavor Large Strong Advisor International
Cap Fund Focus Fund Core Fund
-------------- -------------- --------------
Income:
Dividends (net of foreign withholding taxes
of $1, $0 and $2, respectively) $ 126 $ 4 $ 13
Interest 7 1 --
-------------- -------------- --------------
Total Income 133 5 13
Expenses (Note 4):
Investment Advisory Fees 114 13 3
Administrative Fees 46 5 1
Custodian Fees 5 5 4
Shareholder Servicing Costs 31 4 1
Reports to Shareholders 5 9 2
12b-1 Fees 41 10 3
Transfer Agency Banking Charges 1 -- --
Professional Fees 9 6 7
Federal and State Registration Fees 18 13 16
Other 4 2 1
-------------- -------------- --------------
Total Expenses before Expense Offsets 274 67 38
Expense Offsets (8) (36) (37)
-------------- -------------- --------------
Expenses, Net 266 31 1
-------------- -------------- --------------
Net Investment Income (Loss) (133) (26) 12
Realized and Unrealized Gain (Loss):
Net Realized Gain (Loss) on:
Investments 524 (66) (28)
Written Options -- (8) --
-------------- -------------- --------------
Net Realized Gain (Loss) 524 (74) (28)
Net Change in Unrealized
Appreciation/Depreciation on Investments 3,738 377 89
-------------- -------------- --------------
Net Gain (Loss) on Investments 4,262 303 61
-------------- -------------- --------------
Net Increase (Decrease) in Net Assets
Resulting from Operations $ 4,129 $ 277 $ 73
============== ============== ==============
See Notes to Financial Statements.
55
STATEMENTS OF OPERATIONS (continued)
- --------------------------------------------------------------------------------
For the Six Months Ended June 30, 2003 (Unaudited)
(In Thousands)
Strong Advisor
Strong Advisor U.S. Small/Mid
Strong Advisor Technology Cap Growth
Select Fund Fund Fund
-------------- -------------- --------------
Income:
Dividends (net of foreign withholding taxes
of $4, $0 and $0, respectively) $ 185 $ 1 $ --
Interest 13 1 --
-------------- -------------- --------------
Total Income 198 2 --
Expenses (Note 4):
Investment Advisory Fees 230 6 4
Administrative Fees 92 2 2
Custodian Fees 4 1 2
Shareholder Servicing Costs 61 2 1
Reports to Shareholders 4 1 4
12b-1 Fees 79 4 4
Professional Fees 7 6 1
Federal and State Registration Fees 20 14 27
Insurance Expense 28 -- --
Other 2 -- --
-------------- -------------- --------------
Total Expenses before Expense Offsets 527 36 45
Expenses Offsets (4) (18) (33)
-------------- -------------- --------------
Expenses, Net 523 18 12
-------------- -------------- --------------
Net Investment Income (Loss) (325) (16) (12)
Realized and Unrealized Gain (Loss):
Net Realized Gain (Loss) on Investments 1,265 (161) (32)
Net Change in Unrealized
Appreciation/Depreciation on Investments 6,474 671 335
-------------- -------------- --------------
Net Gain (Loss) on Investments 7,739 510 303
-------------- -------------- --------------
Net Increase (Decrease) in Net Assets
Resulting from Operations $ 7,414 $ 494 $ 291
============== ============== ==============
See Notes to Financial Statements.
56
STATEMENTS OF OPERATIONS (continued)
- --------------------------------------------------------------------------------
For the Six Months Ended June 30, 2003 (Unaudited)
(In Thousands)
Strong Advisor Strong Advisor
Utilities and Large Company
Energy Fund Core Fund
-------------- --------------
Income:
Dividends (net of foreign withholding taxes
of $2 and $1, respectively) $ 178 $ 337
Interest 5 10
-------------- --------------
Total Income 183 347
Expenses (Note 4):
Investment Advisory Fees 31 146
Administrative Fees 15 54
Custodian Fees 3 6
Shareholder Servicing Costs 10 39
Reports to Shareholders 1 23
12b-1 Fees 14 43
Professional Fees 7 13
Federal and State Registration Fees 10 34
Other 1 (3)
-------------- -------------
Total Expenses before Expense Offsets 92 355
Expense Offsets (2) (91)
-------------- -------------
Expenses, Net 90 264
-------------- -------------
Net Investment Income (Loss) 93 83
Realized and Unrealized Gain (Loss):
Net Realized Gain (Loss) on Investments (249) (34)
Net Change in Unrealized
Appreciation/Depreciation on Investments 1,042 4,230
-------------- --------------
Net Gain (Loss) on Investments 793 4,196
-------------- --------------
Net Increase (Decrease) in Net Assets
Resulting from Operations $ 886 $ 4,279
============== ==============
See Notes to Financial Statements.
57
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
(In Thousands)
Strong Advisor Common Strong Advisor Mid Cap
Stock Fund Growth Fund
---------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002 June 30, 2003 Dec. 31, 2002
---------------- --------------- ---------------- ---------------
(Unaudited) (Unaudited)
Operations:
Net Investment Income (Loss) $ (3,198) $ (5,135) $ (623) $ (1,515)
Net Realized Gain (Loss) (21,211) (77,920) 2,249 (38,031)
Net Change in Unrealized
Appreciation/Depreciation 259,557 (286,461) 14,557 (10,240)
---------------- --------------- ---------------- ---------------
Net Increase (Decrease) in Net
Assets Resulting from Operations 235,148 (369,516) 16,183 (49,786)
Distributions From Net Investment
Income -- -- -- --
Capital Share Transactions (Note 8):
Net Increase (Decrease) in Net Assets
from Capital Share Transactions (60,522) 65,320 2,099 (16,104)
---------------- --------------- ---------------- ---------------
Total Increase (Decrease) in Net Assets 174,626 (304,196) 18,282 (65,890)
Net Assets:
Beginning of Period 1,456,287 1,760,483 74,269 140,159
---------------- --------------- ---------------- ---------------
End of Period $ 1,630,913 $ 1,456,287 $ 92,551 $ 74,269
================ =============== ================ ===============
Undistributed Net Investment Income
(Loss) $ (3,198) $ -- $ (623) $ --
Strong Advisor Small Cap
Value Fund
--------------------------------
Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002
---------------- -------------
(Unaudited)
Operations:
Net Investment Income (Loss) $ (5,542) $ 794
Net Realized Gain (Loss) 26,976 (13,119)
Net Change in Unrealized
Appreciation/Depreciation 159,022 (84,823)
---------------- -------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 180,456 (97,148)
Distributions From Net Investment Income -- --
Capital Share Transactions (Note 8):
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 150,123 475,362
---------------- -------------
Total Increase (Decrease) in Net Assets 330,579 378,214
Net Assets:
Beginning of Period 1,167,291 789,077
---------------- -------------
End of Period $ 1,497,870 $ 1,167,291
================ =============
Undistributed Net Investment Income (Loss) $ (4,749) $ 793
See Notes to Financial Statements.
58
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
(In Thousands)
Strong Advisor U.S.
Value Fund
--------------------------------
Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002
---------------- -------------
(Unaudited)
Operations:
Net Investment Income (Loss) $ 601 $ 777
Net Realized Gain (Loss) 1,501 (13,672)
Net Change in Unrealized
Appreciation/Depreciation 22,732 (22,399)
---------------- -------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 24,834 (35,294)
Distributions:
From Net Investment Income:
Class A (13) (48)
Class B (3) (5)
Class C (2) (8)
Class K (86) (263)
Class Z (479) (416)
From Net Realized Gains:
Class A -- (328)
Class B -- (213)
Class C -- (61)
Class K -- (8)
Class Z -- (13,995)
---------------- -------------
Total Distributions (583) (15,345)
Capital Share Transactions (Note 8):
Net Increase (Decrease) in Net Assets from
Capital Share Transactions (20,604) 74,257
---------------- -------------
Total Increase (Decrease) in Net Assets 3,647 23,618
Net Assets:
Beginning of Period 215,770 192,152
---------------- -------------
End of Period $ 219,417 $ 215,770
================ =============
Undistributed Net Investment Income (Loss) $ 22 $ 4
See Notes to Financial Statements.
59
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
(In Thousands)
Strong Advisor Endeavor Strong Advisor Focus
Large Cap Fund Fund
---------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002 June 30, 2003 Dec. 31, 2002
---------------- --------------- ---------------- ---------------
(Unaudited) (Unaudited)
Operations:
Net Investment Income (Loss) $ (133) $ (337) $ (26) $ (94)
Net Realized Gain (Loss) 524 (9,424) (74) (872)
Net Change in Unrealized Appreciation/
Depreciation 3,738 (148) 377 (799)
---------------- --------------- ---------------- ---------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 4,129 (9,909) 277 (1,765)
Distributions From Net Investment Income -- -- -- --
Capital Share Transactions (Note 8):
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 2,045 10,385 (299) (1,883)
---------------- --------------- ---------------- ---------------
Total Increase (Decrease) in Net Assets 6,174 476 (22) (3,648)
Net Assets:
Beginning of Period 28,807 28,331 3,653 7,301
---------------- --------------- ---------------- ---------------
End of Period $ 34,981 $ 28,807 $ 3,631 $ 3,653
================ =============== ================ ===============
Undistributed Net Investment
Income (Loss) $ (133) $ -- $ (26) $ --
Strong Advisor
International Core Fund Strong Advisor Select Fund
---------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002 June 30, 2003 Dec. 31, 2002
---------------- --------------- ---------------- ---------------
(Unaudited) (Unaudited)
Operations:
Net Investment Income (Loss) $ 12 $ (3) $ (325) $ (624)
Net Realized Gain (Loss) (28) (28) 1,265 (14,593)
Net Change in Unrealized Appreciation/
Depreciation 89 (27) 6,474 (563)
---------------- --------------- ---------------- ---------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 73 (58) 7,414 (15,780)
Distributions:
From Net Realized Gains:
Class A -- -- -- (106)
Class B -- -- -- (1)
---------------- --------------- ---------------- ---------------
Total Distributions -- -- -- (107)
Capital Share Transactions (Note 8):
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 480 347 9,682 14,803
---------------- --------------- ---------------- ---------------
Total Increase (Decrease) in Net Assets 553 289 17,096 (1,084)
Net Assets:
Beginning of Period 601 312 56,310 57,394
---------------- --------------- ---------------- ---------------
End of Period $ 1,154 $ 601 $ 73,406 $ 56,310
================ =============== ================ ===============
Undistributed Net Investment
Income (Loss) $ 12 $ -- $ (325) $ --
See Notes to Financial Statements.
60
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
(In Thousands)
Strong Advisor
Strong Advisor U.S.Small/Mid
Technology Fund Cap Growth Fund
---------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Period Ended
June 30, 2003 Dec. 31, 2002 June 30, 2003 Dec. 31, 2002
---------------- --------------- ---------------- ---------------
(Unaudited) (Unaudited) (Note 1)
Operations:
Net Investment Income (Loss) $ (16) $ (42) $ (12) $ (10)
Net Realized Gain (Loss) (161) (714) (32) (180)
Net Change in Unrealized Appreciation/
Depreciation 671 (408) 335 8
---------------- --------------- ---------------- ---------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 494 (1,164) 291 (182)
Distributions From Net Investment Income -- -- -- --
Capital Share Transactions (Note 8):
Net Increase (Decrease) in Net Assets
from Capital Share Transactions 128 (262) 592 944
---------------- --------------- ---------------- ---------------
Total Increase (Decrease) in Net Assets 622 (1,426) 883 762
Net Assets:
Beginning of Period 1,489 2,915 762 --
---------------- --------------- ---------------- ---------------
End of Period $ 2,111 $ 1,489 $ 1,645 $ 762
================ =============== ================ ===============
Undistributed Net Investment Income
(Loss) $ (16) $ -- $ (12) $ --
Strong Advisor Utilities
and Energy Fund
------------------------------------
Six Months Ended Period Ended
June 30, 2003 Dec. 31, 2002
---------------- ----------------
(Unaudited) (Note 1)
Operations:
Net Investment Income (Loss) $ 93 $ 37
Net Realized Gain (Loss) (249) (581)
Net Change in Unrealized Appreciation/
Depreciation 1,042 16
---------------- ----------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 886 (528)
Distributions:
From Net Investment Income:
Class A (85) (36)
Class B (1) --
Class C (1) (1)
---------------- ----------------
Total Distributions (87) (37)
Capital Share Transactions (Note 8):
Net Increase (Decrease) in Net Assets from Capital
Share Transactions 8,549 6,951
---------------- ----------------
Total Increase (Decrease) in Net Assets 9,348 6,386
Net Assets:
Beginning of Period 6,386 --
---------------- ----------------
End of Period $ 15,734 $ 6,386
================ ================
Undistributed Net Investment Income
(Loss) $ 6 $ --
See Notes to Financial Statements.
61
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
(In Thousands)
Strong Advisor Large Company Core Fund
--------------------------------------------------------
Six Months Ended Period Ended Year Ended
June 30, 2003 Dec. 31, 2002 Sept. 30, 2002
---------------- ---------------- ----------------
(Unaudited)
Operations:
Net Investment Income (Loss) $ 83 $ 8 $ 42
Net Realized Gain (Loss) (34) (233) (397)
Net Change in Unrealized Appreciation/Depreciation 4,230 611 (398)
---------------- ---------------- ----------------
Net Increase (Decrease) in Net Assets Resulting
from Operations 4,279 386 (753)
Distributions:
From Net Investment Income:
Class A (21) (6) (22)
Class K (46) -- --
From Net Realized Gains:
Class A -- -- (140)
---------------- ---------------- ----------------
Total Distributions (67) (6) (162)
Capital Share Transactions (Note 8):
Net Increase (Decrease) in Net Assets from Capital
Share Transactions 49,651 2,841 3,279
---------------- ---------------- ----------------
Total Increase (Decrease) in Net Assets 53,863 3,221 2,364
Net Assets:
Beginning of Period 9,676 6,455 4,091
---------------- ---------------- ----------------
End of Period $ 63,539 $ 9,676 $ 6,455
================ ================ ================
Undistributed Net Investment Income (Loss) $ 24 $ 8 $ 6
See Notes to Financial Statements.
62
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
1. Organization
The accompanying financial statements represent the Strong Advisor Equity
Funds (the "Funds"), which include the following Funds, each with its own
investment objective(s) and policies:
- Strong Advisor Common Stock Fund/(1)/ (a series of Strong Common Stock
Fund, Inc.)
- Strong Advisor Mid Cap Growth Fund/(1)/ (a series of Strong Equity Funds,
Inc.)
- Strong Advisor Small Cap Value Fund/(1)/ (a series of Strong Equity
Funds, Inc.)
- Strong Advisor U.S. Value Fund/(1)/ (a series of Strong Conservative
Equity Funds, Inc.)
- Strong Advisor Endeavor Large Cap Fund/(1)/ (a series of Strong Common
Stock Fund, Inc.)
- Strong Advisor Focus Fund/(2)/ (a series of Strong Common Stock Fund,
Inc.)
- Strong Advisor International Core Fund/(1)/ (a series of Strong
International Equity Funds, Inc.)
- Strong Advisor Select Fund/(2)/ (a series of Strong Opportunity Fund,
Inc.)
- Strong Advisor Technology Fund/(1)/ (a series of Strong Common Stock
Fund, Inc.)
- Strong Advisor U.S.Small/Mid Cap Growth Fund/(1)/ (a series of Strong
Opportunity Fund, Inc.)
- Strong Advisor Utilities and Energy Fund/(1)/ (a series of Strong Equity
Funds, Inc.)
- Strong Advisor Large Company Core Fund/(1)/ (a series of Strong Equity
Funds, Inc.)
/(1)/ Diversified Fund.
/(2)/ Non-diversified Fund.
Each Fund is an open-end management investment company registered under the
Investment Company Act of 1940, as amended ("1940 Act").
Class A, B and C shares are available only through financial professionals.
Class K shares are available only through programs managed by Strong
Capital Management, Inc. (the "Advisor"). Class Z shares are available to
certain investors and investment professionals who owned Investor Class
shares of the Fund on November 30, 2000 and to certain other investors as
set forth in the Funds' prospectuses.
Strong Advisor Common Stock Fund, Strong Advisor Mid Cap Growth Fund and
Strong Advisor Small Cap Value Fund offer Class A, B, C and Z shares.
Strong Advisor U.S. Value Fund offers Class A, B, C, K and Z shares. Strong
Advisor Endeavor Large Cap Fund, Strong Advisor Focus Fund, Strong Advisor
International Core Fund, Strong Advisor Select Fund, Strong Advisor
Technology Fund, Strong Advisor U.S.Small/Mid Cap Growth Fund and Strong
Advisor Utilities and Energy Fund offer Class A, B and C shares. Strong
Advisor Large Company Core Fund offers Class A, B, C and K shares. All
classes differ principally in their respective shareholder servicing and
distribution expenses and sales charges. All classes of shares have
identical rights to earnings, assets and voting privileges, except for
Class-specific expenses and exclusive rights to vote on matters affecting
only individual classes.
Effective March 28, 2002 (public launch date of April 1, 2002), Strong
Advisor U.S. Small/Mid Cap Growth Fund commenced operations and offers
three classes of shares: Class A, B and C.
Effective July 31, 2002 (public launch date of August 1, 2002), Strong
Advisor Utilities and Energy Fund commenced operations and offers three
classes of shares: Class A, B and C.
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 -- Securities of the Funds traded on a national
securities exchange are valued each business day at the last sales
price. Securities traded on the NASDAQ Stock Market are valued each
business day using the NASDAQ Official Closing Price ("NOCP").
Exchange-traded securities for which there were no transactions and
NASDAQ-traded securities for which there is no NOCP are valued at the
mean of the bid and ask prices. Securities for which market quotations
are not readily available are valued at fair value as determined in
good faith under the general supervision of the Board of Directors.
Occasionally, events affecting the value of foreign investments and
exchange rates occur between the time at which those items are
determined and the close of trading on the New York Stock Exchange.
Such events would not normally be reflected in a calculation of the
Funds' net asset values on that day. If events that materially affect
the value of the Funds' foreign investments or the foreign currency
exchange rates occur during such period, the investments will be
valued at their fair value as determined in good faith under the
general supervision of the Board of Directors. Securities that 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 that are restricted as
to resale or are deemed illiquid. Restricted securities are Section
4(2) commercial paper or are eligible for resale pursuant to Rule 144A
under the Securities Act of 1933. Securities are deemed illiquid based
upon guidelines established by the Funds' Board of Directors. These
securities
63
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
are valued after giving due consideration to pertinent factors, such
as 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. The Funds held no
restricted or illiquid securities at June 30, 2003.
(B) Federal Income and Excise Taxes and Distributions to Shareholders --
The Funds intend to comply with the requirements of the Internal
Revenue Code of 1986, as amended, 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
recorded.
Undistributed income or net realized gains for financial statement
purposes may differ from federal income tax purposes due to
differences in the timing, recognition and characterization of income,
expense and capital gain 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 Funds may utilize earnings and profits distributed to
shareholders on redemption of shares as part of the dividends paid
deduction.
Each Fund, other than Strong Advisor U.S. Value Fund, Strong Advisor
Large Company Core Fund and Strong Advisor Utilities and Energy Fund,
generally pays dividends from net investment income and distributes
net capital gains, if any, that they realize at least annually. Strong
Advisor U.S. Value Fund, Strong Advisor Large Company Core Fund and
Strong Advisor Utilities and Energy Fund generally pay dividends from
net investment income quarterly and distribute net capital gains, if
any, that it realizes at least 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 Funds may utilize derivative
instruments including options, futures and other instruments with
similar characteristics to the extent that they are consistent with
the Funds' investment objectives and limitations. The Funds intend to
use such derivative instruments primarily to hedge or protect from
adverse movements in securities prices, foreign currencies or interest
rates. The use of these instruments may involve risks such as the
possibility that the value of the underlying assets fluctuates, the
derivative becomes illiquid, imperfect correlation exists between the
value of the instruments and the underlying securities, or that the
counterparty fails to perform its obligations.
Investments in foreign-denominated assets or forward currency
contracts may involve greater risks than domestic investments due to
currency rate fluctuations, political and economic instability,
different financial reporting standards and taxes, less liquidity,
less strict regulation of securities markets and smaller markets with
lower trading volume.
(E) Futures -- Upon entering into a futures contract, the Funds deposit in
a segregated account with their custodian, in the name of the broker,
cash and/or other liquid investments equal to the minimum "initial
margin" requirements of the exchange. Each Fund designates liquid
securities 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 futures 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 Funds may write put or call options. Premiums received
by the Funds upon writing put or call options are recorded as an asset
with a corresponding liability that 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 is closed,
expired or exercised, 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. Each
Fund designates liquid securities as collateral on open options
contracts.
(G) Foreign Currency Translation -- Investment securities and other assets
and liabilities initially expressed in foreign currencies are
converted daily 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.
64
- --------------------------------------------------------------------------------
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) Short Positions -- The Funds may engage in short sale transactions.
For financial statement purposes, an amount equal to the settlement
amount is included in the Statements of Assets and Liabilities as an
asset and an equivalent liability. The amount of the liability is
subsequently marked-to-market to reflect the current value of the
short position. The Funds are liable for any dividends payable on
securities while those securities are in a short position. If the
Funds sell securities short while also holding the long position, they
may protect unrealized gains but will lose the opportunity to profit
on such securities if the price rises. If the Funds sell securities
short when not holding the long position, they will experience a loss
if the market price of the security increases between the date of the
short sale and the date the security is replaced.
(J) Repurchase Agreements -- The Funds may enter into repurchase
agreements with institutions that the Advisor has determined are
creditworthy. Each repurchase agreement is recorded at cost, which
approximates fair value. The Funds require that the 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 Funds to obtain
those securities in the event of a default of the counterparty. On a
daily basis, the Advisor monitors the value of the collateral,
including accrued interest, to ensure it is at least equal to the
amounts owed to the Funds under each repurchase agreement.
(K) Directed Brokerage -- The Funds direct certain portfolio trades to
brokers who, in turn, pay a portion of the Funds' expenses not
attributable to the Advisor or its affiliates. Such amounts are
included in Expense Offsets reported in the Funds' Statements of
Operations and in Note 4.
(L) Earnings Credit Arrangements -- Credits are earned on positive cash
balances maintained in custodian accounts. These credits serve to
reduce the custodian's fees incurred by certain Funds and are included
in Expense Offsets reported in the Funds' Statements of Operations and
in Note 4.
(M) Securities Lending -- The Funds, except Strong Advisor Large Company
Core Fund and Strong Advisor Utilities and Energy Fund, have entered
into a Securities Lending Agreement (the "Agreement") with Deutsche
Bank. Under the terms of the Agreement, the Funds may lend portfolio
securities to qualified institutional borrowers in order to earn
additional income. The Agreement requires that loans are
collateralized at all times by cash equal to at least 102% of the
market value of any loaned securities, plus accrued interest.
At June 30, 2003, Strong Advisor Common Stock Fund, Strong Advisor Mid
Cap Growth Fund and Strong Advisor U.S. Value Fund had securities with
a market value of $66,228,364, $2,580,064 and $15,283,793,
respectively, on loan and had received $68,983,692, $2,660,034 and
$15,846,538, respectively, in collateral (both included within
Investments in the Statements of Assets and Liabilities). Amounts
earned as interest on investments of cash collateral, net of rebates
and other securities lending expenses, are included in Interest Income
in the Statements of Operations. For the six months ended June 30,
2003, the securities lending income totaled, $73,392, $368 and $3,560
for Strong Advisor Common Stock Fund, Strong Advisor Mid Cap Growth
Fund and Strong Advisor U.S. Value Fund, respectively.
The three primary risks associated with securities lending are: a
borrower defaulting on its obligation to return the securities loaned
resulting in a shortfall on the posted collateral; a principal loss
arising from the lending agent's investment of cash collateral; and
the inability of the lending Fund to recall a security in time to
exercise valuable voting rights or sell the security.
(N) Expenses -- The Funds and other affiliated Strong Funds contract for
certain services on a collective basis. The majority of the expenses
are directly identifiable to an individual Fund. Expenses that are not
readily identifiable to a specific Fund will be allocated in such a
manner as deemed equitable, taking into consideration, among other
things, the nature and type of expense and the relative sizes of the
Strong Funds.
(O) Use of Estimates -- The preparation of financial statements in
conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and
assumptions that affect the reported amounts in these financial
statements. Actual results could differ from those estimates.
(P) 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 premiums and discounts on
the interest method. Income, expenses (other than expenses
attributable to a specific class), and realized and unrealized gains
or losses on investments are allocated to each class of shares based
on its relative shares outstanding.
65
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
3. Related Party Transactions
The Advisor provides investment advisory and related services to the Funds.
Strong Investor Services, Inc. (the "Administrator"), an affiliate of the
Advisor, provides administrative, transfer agent and related services to
the Funds. Certain officers and directors of the Funds are affiliated with
the Advisor and the Administrator. Investment advisory and administration
fees, which are established by terms of the advisory and administration
agreements, are based on the following annualized rates of the average
daily net assets of the respective Fund:
Administrative Fees
-------------------------------------------------------
Advisory Fees/(1)/ Class A Class B Class C Class K Class Z
------------------ ------- ------- ------- ------- -------
Strong Advisor Common Stock Fund 0.75% 0.30% 0.30% 0.30% * 0.30%
Strong Advisor Mid Cap Growth Fund 0.75% 0.30% 0.30% 0.30% * 0.30%
Strong Advisor Small Cap Value Fund 0.75% 0.30% 0.30% 0.30% * 0.30%
Strong Advisor U.S. Value Fund 0.55% 0.30% 0.30% 0.30% 0.25% 0.30%
Strong Advisor Endeavor Large Cap Fund 0.75% 0.30% 0.30% 0.30% * *
Strong Advisor Focus Fund 0.75% 0.30% 0.30% 0.30% * *
Strong Advisor International Core Fund 0.75% 0.30% 0.30% 0.30% * *
Strong Advisor Select Fund 0.75% 0.30% 0.30% 0.30% * *
Strong Advisor Technology Fund 0.75% 0.30% 0.30% 0.30% * *
Strong Advisor U.S.Small/Mid Cap
Growth Fund 0.75% 0.30% 0.30% 0.30% * *
Strong Advisor Utilities and Energy Fund 0.75% 0.30% 0.30% 0.30% * *
Strong Advisor Large Company Core Fund 0.75% 0.30% 0.30% 0.30% 0.25% *
* Does not offer share class.
/(1)/ The investment advisory fees are 0.75% for the first $4 billion in
net assets, 0.725% for the next $2 billion in net assets, and 0.70%
for net assets $6 billion and above. Strong Advisor U.S. Value Fund
does not have a breakpoint schedule.
The Advisor and/or Administrator has contractually agreed to waive and/or
absorb expenses for the following Funds until May 1, 2004 to keep Total
Operating Expenses at or below the following percentages:
Class A Class B Class C Class K Class Z
-------- -------- -------- -------- -------
Strong Advisor Common Stock Fund * 2.50% * ** *
Strong Advisor Mid Cap Growth Fund * 2.50% 2.50% ** *
Strong Advisor Small Cap Value Fund * * * ** *
Strong Advisor U.S. Value Fund 2.50% 2.50% 2.50% 0.99% *
Strong Advisor Endeavor Large Cap Fund * 2.50% 2.50% ** **
Strong Advisor Focus Fund 1.50% 2.25% 2.25% ** **
Strong Advisor International Core Fund 2.50% 2.50% 2.50% ** **
Strong Advisor Select Fund 2.50% 2.50% 2.50% ** **
Strong Advisor Technology Fund 2.50% 2.50% 2.50% ** **
Strong Advisor U.S.Small/Mid Cap Growth Fund 2.50% 2.50% 2.50% ** **
Strong Advisor Utilities and Energy Fund * * * ** **
Strong Advisor Large Company Core Fund 1.50%/(1)/ 2.50% 2.50% 0.99% **
* Contractual rate not applicable to Class.
** Does not offer share class.
/(1)/ The contractual rate is indefinite and may only be terminated by the
Board of Directors of the Funds, but not before May 1, 2004.
Transfer agent and related service fees for the Funds' Class Z shares are
paid at a rate of $27.00 for each open shareholder account and $4.20 for
each closed shareholder account. Transfer agent and related service fees
for each of the Funds' Class A, B, C and K shares are paid at an annual
rate of 0.20% of the average daily net asset value of each respective
class. Transfer Agent fees are recorded in shareholder servicing costs in
the Funds' Statements of Operations. The Administrator also allocates to
each Fund certain charges or credits resulting from transfer agency banking
activities based on each Class' level of subscription and redemption
activity. Transfer Agency Banking Charges allocated to the Funds by the
Administrator, if any, are included in Other Expenses in the Funds'
Statements of Operations. Transfer Agency Banking Credits allocated by the
Administrator, if any, serve to reduce the transfer agency expenses
incurred by the Funds and are included in Expense Offsets in the Funds'
Statements of Operations and in Note 4. The Administrator is also
compensated for certain other out-of-pocket expenses related to transfer
agent services.
The Funds have entered into a distribution agreement with Strong
Investments, Inc. (the "Distributor, "and an affiliate of the Advisor)
pursuant to Rule 12b-1 under the 1940 Act on behalf of each of the Funds'
Class A, B and C shares. Under the plan, Strong Investments, Inc. is paid
an annual rate of 0.25%, 1.00% and 1.00% of the average daily net assets of
the Class A, B and C shares, respectively, as compensation for services
provided and expenses incurred, including amounts paid to brokers or
dealers, in connection with the sale of each Fund's Class A, B and C
shares. See Note 4.
66
- --------------------------------------------------------------------------------
The Funds' Class A, B and C shares have various sales charges and/or
redemption fees charged to shareholders. The Funds' Class A shares have a
maximum 5.75% front-end sales charge. The Funds Class A shares, except
Strong Large Company Core Fund, may be subject to a 1.00% contingent
deferred sales charge if shares are purchased without an initial sales
charge and are redeemed within one year of purchase. Strong Advisor Large
Company Core Fund's Class A shares have a 1.00% redemption fee imposed on
redemptions made within 12 months of purchase. The Funds' Class B shares
have a maximum 5.00% contingent deferred sales charge. The Funds' Class C
shares have a 1.00% contingent deferred sales charge, if the shares are
sold within 1 year of their original purchase date. Certain of these sales
charges and/or redemption fees may be waived in limited circumstances.
For the six months ended June 30, 2003, the Distributor received aggregate
sales charges from the sale of Class A shares as follows: Strong Advisor
Common Stock Fund $19,423, Strong Advisor Mid Cap Growth Fund $1,072,
Strong Advisor Small Cap Value Fund $30,603, Strong Advisor U.S. Value Fund
$1,304, Strong Advisor Endeavor Large Cap Fund $107, Strong Advisor Focus
Fund $58, Strong Advisor International Core Fund $1,088, Strong Advisor
Select Fund $226, Strong Advisor Technology Fund $0, Strong Advisor
U.S. Small/Mid Cap Growth Fund $623, Strong Advisor Utilities and Energy
Fund $65 and Strong Large Company Core Fund $24,981.
For the six months ended June 30, 2003, the Distributor also received
aggregate contingent deferred sales charges from the redemption of Class B
and C shares as follows: Strong Advisor Common Stock Fund $28,870, Strong
Advisor Mid Cap Growth Fund $5,861, Strong Advisor Small Cap Value Fund
$114,913, Strong Advisor U.S. Value Fund $13,433, Strong Advisor Endeavor
Large Cap Fund $62, Strong Advisor Focus Fund $10,049, Strong Advisor
International Core Fund $8, Strong Advisor Select Fund $881, Strong Advisor
Technology Fund $0, Strong Advisor U.S. Small/Mid Cap Growth Fund $0,
Strong Advisor Utilities and Energy Fund $0 and Strong Large Company Core
Fund $704.Sales charges are not an expense of the Funds and are not
reflected in the financial statements of the Funds.
Next Century Growth Investors, LLC ("Next Century Growth"), an affiliate of
the Advisor, manages the investments of Strong Advisor U.S. Small/Mid Cap
Growth Fund under a subadvisory agreement with the Advisor. Next Century
Growth is compensated by the Advisor (not the Fund) and bears all of its
own expenses in providing subadvisory services.
W.H. Reaves & Co., Inc. ("Reaves") manages the investments of Strong
Advisor Utilities and Energy Fund under an agreement with the Advisor.
Reaves is compensated by the Advisor (not the Fund) and bears all of its
own expenses in providing subadvisory services. The investment subadvisory
fees are based on breakpoints ranging from net asset values of $200 million
to $2.5 billion. The investment subadvisory fees are also subject to
adjustment upward or downward depending on the Fund's performance measured
against a benchmark. The benchmark is 90% of the performance of a blend of
utilities and energy indices. In addition, Reaves directly affects
purchases and sales of securities for the Fund. In conjunction therewith,
brokerage commissions paid to Reaves by the Fund for the six months ended
June 30, 2003, totaled $33,584.
The Funds may invest cash in money market funds managed by the Advisor,
subject to certain limitations.
Certain information regarding related party transactions, excluding the
effects of waivers and absorptions, for the six months ended June 30, 2003,
is as follows:
Payable to/
(Receivable From)
Administrator Shareholder Servicing Transfer Agency Unaffiliated
or Advisor and Other Expenses Banking Directors'
at June 30, 2003 Paid to Administrator Charges/(Credits) Fees
----------------- --------------------- ----------------- ------------
Strong Advisor Common Stock Fund $ 514,755 $ 2,064,844 $ 5,511 $ 29,139
Strong Advisor Mid Cap Growth
Fund 48,073 227,671 679 1,816
Strong Advisor Small Cap Value
Fund 304,760 1,625,297 7,779 19,622
Strong Advisor U.S. Value Fund 127,017 656,878 14,153 3,652
Strong Advisor Endeavor Large
Cap Fund 8,620 30,635 938 691
Strong Advisor Focus Fund 1,065 3,674 21 331
Strong Advisor International
Core Fund (349) 799 6 256
Strong Advisor Select Fund 13,623 61,334 942 1,142
Strong Advisor Technology Fund 212 1,733 7 281
Strong Advisor U.S. Small/Mid
Cap Growth Fund (82) 1,070 2 259
Strong Advisor Utilities and
Energy Fund 2,226 10,056 12 319
Strong Advisor Large Company
Core Fund 8,889 38,766 456 367
At June 30, 2003, the Distributor owns the following percentages of the
outstanding shares of each Fund.
Percentage owned
by Distributor
----------------
Strong Advisor International Core
Fund 17%
Strong Advisor U.S. Small/Mid Cap
Growth Fund 19%
67
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
4. Expenses and Expense Offsets
For the six months ended June 30, 2003, the class specific expenses are as
follows:
Administrative Shareholder Reports to
Fees Servicing Costs Shareholders 12b-1 Fees Other
-------------- --------------- ------------ ----------- --------
Strong Advisor Common Stock Fund
Class A $ 75,754 $ 51,166 $ 7,376 $ 63,128 $ 87
Class B 39,019 27,353 9,979 130,064 141
Class C 36,052 25,009 9,025 120,174 378
Class Z 2,013,644 1,959,550 228,875 -- 6,670
Strong Advisor Mid Cap Growth
Fund
Class A 13,710 9,240 611 11,425 (443)
Class B 3,708 2,656 2,846 12,359 28
Class C 1,307 924 665 4,356 25
Class Z 104,728 214,487 45,975 -- 1,433
Strong Advisor Small Cap Value
Fund
Class A 538,920 364,048 25,316 449,100 1,498
Class B 118,335 83,278 18,920 394,451 480
Class C 156,816 108,896 17,668 522,722 1,354
Class Z 1,026,284 1,066,619 44,737 -- 6,905
Strong Advisor U.S. Value Fund
Class A 3,850 2,636 696 3,208 68
Class B 4,629 3,225 713 15,429 18
Class C 2,396 1,723 673 7,985 282
Class K 16,123 12,905 (1,147) -- 566
Class Z 260,942 635,773 112,291 -- 13,835
Strong Advisor Endeavor Large
Cap Fund
Class A 44,829 29,915 2,391 37,358 918
Class B 604 425 1,646 2,012 3
Class C 356 264 1,029 1,190 49
Strong Advisor Focus Fund
Class A 2,942 2,025 3,479 2,449 14
Class B 1,809 1,282 4,456 6,024 11
Class C 494 347 1,099 1,645 16
Strong Advisor International
Core Fund
Class A 340 229 565 282 2
Class B 583 406 689 1,940 2
Class C 236 162 417 788 4
Strong Advisor Select Fund
Class A 90,831 60,621 3,364 75,693 940
Class B 534 376 158 1,781 2
Class C 433 307 112 1,442 29
Strong Advisor Technology Fund
Class A 1,884 1,283 283 1,569 7
Class B 242 174 251 806 2
Class C 369 265 265 1,229 8
Strong Advisor U.S. Small/Mid Cap
Growth Fund
Class A 545 372 1,141 455 2
Class B 546 372 1,271 1,821 1
Class C 418 322 1,354 1,403 3
Strong Advisor Utilities and
Energy Fund
Class A 14,543 9,705 (408) 12,119 37
Class B 169 117 880 566 --
Class C 293 200 845 978 9
Strong Advisor Large Company
Core Fund
Class A 29,319 19,622 18,370 24,317 57
Class B 3,161 2,033 1,031 10,605 6
Class C 2,320 1,540 792 7,809 71
Class K 19,382 15,491 2,888 -- 400
68
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For the six months ended June 30, 2003, the class specific expense offsets
are as follows:
Expense Waivers Transfer Agency Directed Earnings
and Absorptions Banking Credits Brokerage Credits
--------------- --------------- --------------- ---------------
Strong Advisor Common Stock Fund
Class A $ -- $ -- $ -- $ --
Class B -- -- -- --
Class C -- -- -- --
Class Z -- -- -- --
Fund Level -- -- (28,112) (422)
Strong Advisor Mid Cap Growth Fund
Class A -- (448) -- --
Class B (1,800) -- -- --
Class C (287) -- -- --
Class Z (23,525) -- -- --
Fund Level -- -- (21,726) (296)
Strong Advisor Small Cap Value Fund
Class A -- -- -- --
Class B -- -- -- --
Class C -- -- -- --
Class Z -- -- -- --
Fund Level -- -- (58,123) (480)
Strong Advisor U.S. Value Fund
Class A -- -- -- --
Class B -- -- -- --
Class C (53) -- -- --
Class K (4,193) -- -- --
Class Z -- -- -- --
Fund Level -- -- (18,784) (388)
Strong Advisor Endeavor Large Cap Fund
Class A (257) -- -- --
Class B (1,664) -- -- --
Class C (1,084) -- -- --
Fund Level -- -- (5,196) (14)
Strong Advisor Focus Fund
Class A (10,882) -- -- --
Class B (9,036) -- -- --
Class C (2,368) -- -- --
Fund Level (13,332) -- (612) (5)
Strong Advisor International Core Fund
Class A (1,419) -- -- --
Class B (3,615) -- -- --
Class C (1,609) -- -- --
Fund Level (30,414) -- (140) --
Strong Advisor Select Fund
Class A -- -- -- --
Class B (101) -- -- --
Class C (86) -- -- --
Fund Level -- -- (3,500) (17)
Strong Advisor Technology Fund
Class A (4,890) -- -- --
Class B (1,455) -- -- --
Class C (2,121) -- -- --
Fund Level (6,562) -- (3,156) --
Strong Advisor U.S. Small/Mid Cap Growth
Fund
Class A (1,481) -- -- --
Class B (2,833) -- -- --
Class C (2,706) -- -- --
Fund Level (26,080) -- (56) (3)
69
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
Expense Waivers Transfer Agency Directed Earnings
and Absorptions Banking Credits Brokerage Credits
--------------- --------------- --------------- ------------
Strong Advisor Utilities and Energy
Fund
Class A $ (3) $ -- $ -- $ --
Class B (1,013) -- -- --
Class C (1,019) -- -- --
Fund Level (119) -- -- (2)
Strong Advisor Large Company Core Fund
Class A (36,262) -- -- --
Class B (450) -- -- --
Class C (375) -- -- --
Class K (34,536) -- -- --
Fund Level (13,792) -- (5,361) (63)
5. Line of Credit
The Strong Funds have established a line of credit agreement ("LOC") with
certain financial institutions, which expires October 10, 2003, 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 registration statement. Principal and interest on each borrowing
under the LOC are due not more than 45 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 0.09% per annum is
incurred on the unused portion of the LOC and is allocated to all
participating Strong Funds. The Funds had minimal borrowings under the LOC
during the period. At June 30, 2003, there were no outstanding borrowings
by the Funds under the LOC.
6. Investment Transactions
The aggregate purchases and sales of long-term securities during the six
months ended June 30, 2003, are as follows:
Purchases Sales
---------------- ----------------
Strong Advisor Common Stock Fund $ 337,908,780 $ 385,075,952
Strong Advisor Mid Cap Growth Fund 130,236,375 128,912,006
Strong Advisor Small Cap Value Fund 279,225,972 195,559,002
Strong Advisor U.S. Value Fund 63,589,107 78,507,013
Strong Advisor Endeavor Large Cap Fund 38,431,684 35,652,994
Strong Advisor Focus Fund 6,325,210 6,522,375
Strong Advisor International Core Fund 503,317 119,157
Strong Advisor Select Fund 78,097,588 67,668,279
Strong Advisor Technology Fund 1,799,490 1,803,602
Strong Advisor U.S. Small/Mid Cap Growth Fund 1,265,156 661,684
Strong Advisor Utilities and Energy Fund 13,637,208 6,138,463
Strong Advisor Large Company Core Fund 78,237,203 28,938,525
There were no purchases or sales of long-term U.S. government securities
during the six months ended June 30, 2003.
70
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7. Investments in Affiliates
Affiliated issuers, as defined under the 1940 Act, include any Fund in the
Strong Family of Funds and any issuer in which the Fund's holdings of an
issuer represent 5% or more of the outstanding voting securities of the
issuer. A summary of transactions in the securities of these issuers during
the six months ended June 30, 2003 is as follows:
Balance of Gross Gross Sales Balance of
Shares Held Purchases and Shares Held
Jan. 1, 2003 and Additions Reductions June 30, 2003
------------- ------------- ------------ --------------
Strong Advisor Common Stock Fund
--------------------------------
Jacobs Engineering Group, Inc. 550,000 -- (130,000) 420,000
Strong Heritage Money Fund -
Institutional Class 154,500,000 -- (154,500,000) --
Strong Advisor Small Cap Value Fund
-----------------------------------
Allied Healthcare Products, Inc. 427,790 136,310 -- 564,100
Apex Silver Mines, Ltd. 1,888,100 57,600 (6,000) 1,939,700
Barbeques Galore, Ltd. Sponsored ADR 414,120 9,000 -- 423,120
Calgon Carbon Corporation 2,230,390 75,000 (300) 2,305,090
Chicago Bridge & Iron Company NV 957,830 961,930* (91,360) 1,828,400
Constar International, Inc. 706,500 249,900 (15,300) 941,100
Discovery Partners International, Inc. 1,207,180 328,220 (29,600) 1,505,800
Dura Automotive Systems, Inc. 865,300 399,900 (14,900) 1,250,300
Encore Wire Corporation 942,700 204,200 -- 1,146,900
Evans & Sutherland Computer Corporation 533,800 39,700 -- 573,500
Greka Energy Corporation 362,400 92,700 -- 455,100
Healthcare Services Group, Inc. 453,100 83,400 (14,400) 522,100
IDX Systems Corporation 1,188,680 160,200 (129,780) 1,219,100
Intertape Polymer Group, Inc. 2,045,300 209,800 (40,100) 2,215,000
Kforce.com, Inc. 1,172,500 632,185 -- 1,804,685
Lightbridge, Inc. 1,168,700 193,000 (2,100) 1,359,600
Matrix Service Company 426,900 10,800 (400) 437,300
McMoRan Exploration Company 831,700 80,000 (58,200) 853,500
Net2Phone, Inc. 1,526,600 198,900 -- 1,725,500
Overstock.com, Inc. 368,170 98,000 (312,270) 153,900
Range Resources Corporation 3,397,800 180,000 -- 3,577,800
Rofin-Sinar Technologies, Inc. 630,000 15,080 (395,630) 249,450
Sharper Image Corporation 861,750 203,050 (156,200) 908,600
Strong Heritage Money Fund -
Institutional Class 78,000,000 -- (78,000,000) --
World Acceptance Corporation 1,101,700 -- (142,100) 959,600
Investment
Income Realized
Value Jan. 1, 2003- Gain/Loss
June 30, 2003 June 30, 2003 on Sales
---------------- ---------------- ----------------
Strong Advisor Common Stock Fund
--------------------------------
Jacobs Engineering Group, Inc. $ 17,703,000 $ -- $ 3,258,947
Strong Heritage Money Fund -
Institutional Class -- 619,097 --
Strong Advisor Small Cap Value Fund
-----------------------------------
Allied Healthcare Products, Inc. 2,013,837
Apex Silver Mines, Ltd. 28,610,575 42,846
Barbeques Galore, Ltd. Sponsored ADR 1,148,771 -- --
Calgon Carbon Corporation 13,254,267 -- (67)
Chicago Bridge & Iron Company NV 41,468,112 -- 822,483
Constar International, Inc. 7,142,949 -- (75,280)
Discovery Partners International, Inc. 6,685,752 -- (34,114)
Dura Automotive Systems, Inc. 12,265,443 -- 48,830
Encore Wire Corporation 10,895,550 -- --
Evans & Sutherland Computer Corporation 3,257,480 -- --
Greka Energy Corporation 2,634,574 -- --
Healthcare Services Group, Inc. 7,377,273 -- 119,457
IDX Systems Corporation 18,920,432 -- 946,203
Intertype Polymer Group, Inc. 13,179,250 -- (87,593)
Kforce.com, Inc. 8,716,628 -- --
Lightbridge, Inc. 11,910,096 -- 4,157
Matrix Service Company 7,512,814 -- 4,582
McMoRan Exploration Company 9,507,990 -- (94,257)
Net2Phone, Inc. 7,471,415 -- --
Overstock.com, Inc. 2,233,089 -- 2,769,360
Range Resources Corporation 22,432,806 -- --
Rofin-Sinar Technologies, Inc 3,507,267 -- (1,967,222)
Sharper Image Corporation 24,777,522 -- 1,734,559
Strong Heritage Money Fund -
Institutional Class -- 394,687 --
World Acceptance Corporation 15,622,288 -- 1,501,876
* Increase due to stock split.
71
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
8. Capital Share Transactions
Strong Advisor Strong Advisor
Common Stock Fund Mid Cap Growth Fund
----------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002 June 30, 2003 Dec. 31, 2002
---------------- ---------------- ---------------- --------------
(Unaudited) (Unaudited)
Capital Share Transactions of Each Class of
Shares of the Funds Were as Follows:
CLASS A
Proceeds from Shares Sold $ 30,287,615 $ 44,443,102 $ 22,744,197 $ 7,852,624
Proceeds from Reinvestment of Distributions -- -- -- --
Payment for Shares Redeemed (23,846,562) (16,422,398) (21,336,571) (5,960,849)
---------------- ---------------- ---------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 6,441,053 28,020,704 1,407,626 1,891,775
CLASS B
Proceeds from Shares Sold 4,355,581 16,279,382 311,794 1,063,833
Proceeds from Reinvestment of Distributions -- -- -- --
Payment for Shares Redeemed (1,735,604) (2,796,033) (303,444) (490,422)
---------------- ---------------- ---------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 2,619,977 13,483,349 8,350 573,411
CLASS C
Proceeds from Shares Sold 3,761,193 17,829,709 291,585 674,422
Proceeds from Reinvestment of Distributions -- -- -- --
Payment for Shares Redeemed (3,079,895) (4,291,269) (366,577) (491,641)
---------------- ---------------- ---------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 681,298 13,538,440 (74,992) 182,781
CLASS Z
Proceeds from Shares Sold 102,933,911 343,017,540 20,786,537 29,008,599
Proceeds from Reinvestment of Distributions -- -- -- --
Payment for Shares Redeemed (173,198,002) (332,740,001) (20,028,832) (47,760,745)
---------------- ---------------- ---------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions (70,264,091) 10,277,539 757,705 (18,752,146)
---------------- ---------------- ---------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ (60,521,763) $ 65,320,032 $ 2,098,689 $ (16,104,179)
================ ================ ================ ==============
72
- --------------------------------------------------------------------------------
Strong Advisor Strong Advisor
Common Stock Fund Mid Cap Growth Fund
--------------------------------------- -----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002 June 30, 2003 Dec. 31, 2002
----------------- ------------------ ---------------- ---------------
(Unaudited) (Unaudited)
Transactions in Shares of Each Class
of the Funds Were as Follows:
CLASS A
Sold 1,794,271 2,544,987 2,458,948 696,029
Issued in Reinvestment of
Distributions -- -- -- --
Redeemed (1,411,908) (1,023,173) (2,252,304) (538,918)
----------- ----------- ---------- ----------
Net Increase (Decrease) in Shares 382,363 1,521,814 206,644 157,111
=========== =========== ========== ==========
CLASS B
Sold 263,660 925,237 33,681 99,311
Issued in Reinvestment of
Distributions -- -- -- --
Redeemed (109,878) (177,926) (34,299) (52,425)
----------- ----------- ---------- ----------
Net Increase (Decrease) in Shares 153,782 747,311 (618) 46,886
=========== =========== ========== ==========
CLASS C
Sold 232,438 998,772 31,126 58,173
Issued in Reinvestment of
Distributions -- -- -- --
Redeemed (192,109) (267,172) (39,589) (47,063)
----------- ----------- ---------- ----------
Net Increase (Decrease) in Shares 40,329 731,600 (8,463) 11,110
=========== =========== ========== ==========
CLASS Z
Sold 6,133,593 18,893,016 2,197,257 2,521,554
Issued in Reinvestment of
Distributions -- -- -- --
Redeemed (10,435,469) (19,634,686) (2,122,726) (4,229,449)
----------- ----------- ---------- ----------
Net Increase (Decrease) in Shares (4,301,876) (741,670) 74,531 (1,707,895)
=========== =========== ========== ==========
73
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
Strong Advisor
Small Cap Value Fund
------------------------------------
Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002
---------------- ----------------
(Unaudited)
Capital Share Transactions in Each Class of
Shares of the Fund Were as Follows:
CLASS A
Proceeds from Shares Sold $ 126,236,578 $ 320,021,001
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (64,513,140) (125,640,272)
---------------- ----------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 61,723,438 194,380,729
CLASS B
Proceeds from Shares Sold 11,905,674 50,127,708
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (4,772,278) (8,138,529)
---------------- ----------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 7,133,396 41,989,179
CLASS C
Proceeds from Shares Sold 21,412,985 83,189,864
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (9,026,798) (14,066,931)
---------------- ----------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 12,386,187 69,122,933
CLASS Z
Proceeds from Shares Sold 212,406,893 374,821,378
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (143,526,518) (204,951,882)
---------------- ----------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 68,880,375 169,869,496
---------------- ----------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ 150,123,396 $ 475,362,337
================ ================
74
- --------------------------------------------------------------------------------
Strong Advisor
Small Cap Value Fund
------------------------------------
Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002
---------------- ----------------
(Unaudited)
Transactions in Shares of Each Class of
the Fund Were as Follows:
CLASS A
Sold 6,515,336 15,657,871
Issued in Reinvestment of Distributions -- --
Redeemed (3,439,225) (6,346,438)
---------------- ----------------
Net Increase (Decrease) in Shares 3,076,111 9,311,433
================ ================
CLASS B
Sold 635,508 2,465,423
Issued in Reinvestment of Distributions -- --
Redeemed (261,360) (420,462)
---------------- ----------------
Net Increase (Decrease) in Shares 374,148 2,044,961
================ ================
CLASS C
Sold 1,136,212 4,083,997
Issued in Reinvestment of Distributions -- --
Redeemed (484,723) (736,820)
---------------- ----------------
Net Increase (Decrease) in Shares 651,489 3,347,177
================ ================
CLASS Z
Sold 10,878,965 18,350,666
Issued in Reinvestment of Distributions -- --
Redeemed (7,347,261) (10,421,280)
---------------- ----------------
Net Increase (Decrease) in Shares 3,531,704 7,929,386
================ ================
75
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
Strong Advisor U.S. Value Fund
------------------------------------
Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002
---------------- ----------------
(Unaudited)
Capital Share Transactions of Each Class of
Shares of the Fund Were as Follows:
CLASS A
Proceeds from Shares Sold $ 861,772 $ 5,473,330
Proceeds from Reinvestment of Distributions 12,147 370,177
Payment for Shares Redeemed (460,859) (4,576,333)
---------------- ----------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 413,060 1,267,174
CLASS B
Proceeds from Shares Sold 516,671 1,666,852
Proceeds from Reinvestment of Distributions 2,749 176,747
Payment for Shares Redeemed (474,584) (485,944)
---------------- ----------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 44,836 1,357,655
CLASS C
Proceeds from Shares Sold 424,978 1,315,639
Proceeds from Reinvestment of Distributions 1,144 25,857
Payment for Shares Redeemed (170,615) (267,268)
---------------- ----------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 255,507 1,074,228
CLASS K
Proceeds from Shares Sold 3,742,644 13,002,981
Proceeds from Reinvestment of Distributions 7,527 9,930
Payment for Shares Redeemed (2,580,372) (1,156,304)
---------------- ----------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 1,169,799 11,856,607
CLASS Z
Proceeds from Shares Sold 36,719,412 118,873,719
Proceeds from Reinvestment of Distributions 154,288 9,855,988
Payment for Shares Redeemed (59,360,545) (70,028,503)
---------------- ----------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions (22,486,845) 58,701,204
---------------- ----------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ (20,603,643) $ 74,256,868
================ ================
76
- --------------------------------------------------------------------------------
Strong Advisor
U.S. Value Fund
------------------------------------
Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002
---------------- ----------------
(Unaudited)
Transactions in Shares of Each Class of
the Fund Were as Follows:
CLASS A
Sold 59,806 338,473
Issued in Reinvestment of Distributions 854 22,294
Redeemed (33,779) (322,986)
---------------- ----------------
Net Increase (Decrease) in Shares 26,881 37,781
================ ================
CLASS B
Sold 38,224 111,965
Issued in Reinvestment of Distributions 192 10,387
Redeemed (34,737) (33,910)
---------------- ----------------
Net Increase (Decrease) in Shares 3,679 88,442
================ ================
CLASS C
Sold 31,265 87,390
Issued in Reinvestment of Distributions 83 1,601
Redeemed (12,747) (18,614)
---------------- ----------------
Net Increase (Decrease) in Shares 18,601 70,377
================ ================
CLASS K
Sold 276,593 910,728
Issued in Reinvestment of Distributions 536 611
Redeemed (180,074) (83,911)
---------------- ----------------
Net Increase (Decrease) in Shares 97,055 827,428
================ ================
CLASS Z
Sold 2,658,036 7,547,227
Issued in Reinvestment of Distributions 10,829 577,220
Redeemed (4,151,187) (4,185,995)
---------------- ----------------
Net Increase (Decrease) in Shares (1,482,322) 3,938,452
================ ================
77
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
Strong Advisor
Endeavor Large Cap Fund Strong Advisor Focus Fund
--------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002 June 30, 2003 Dec. 31, 2002
---------------- ------------- ---------------- -------------
(Unaudited) (Unaudited)
Capital Share Transactions of Each Class of
Shares of the Funds Were as Follows:
CLASS A
Proceeds from Shares Sold $ 7,254,663 $ 16,393,415 $ 132,031 $ 452,000
Proceeds from Reinvestment of Distributions -- -- -- --
Payment for Shares Redeemed (5,469,550) (6,400,225) (287,467) (2,024,184)
---------------- ------------- ---------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 1,785,113 9,993,190 (155,436) (1,572,184)
CLASS B
Proceeds from Shares Sold 348,452 266,871 17,143 198,008
Proceeds from Reinvestment of Distributions -- -- -- --
Payment for Shares Redeemed (180,234) (15,344) (167,701) (275,731)
---------------- ------------- ---------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 168,218 251,527 (150,558) (77,723)
CLASS C
Proceeds from Shares Sold 118,913 178,334 102,478 51,385
Proceeds from Reinvestment of Distributions -- -- -- --
Payment for Shares Redeemed (27,717) (38,097) (95,550) (284,139)
---------------- ------------- ---------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 91,196 140,237 6,928 (232,754)
---------------- ------------- ---------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ 2,044,527 $ 10,384,954 $ (299,066) $ (1,882,661)
================ ============= ================ =============
Transactions in Shares of Each Class of
the Funds Were as Follows:
CLASS A
Sold 922,163 1,855,501 26,528 77,432
Issued in Reinvestment of Distributions -- -- -- --
Redeemed (704,889) (761,825) (59,938) (358,043)
---------------- ------------- ---------------- -------------
Net Increase (Decrease) in Shares 217,274 1,093,676 (33,410) (280,611)
================ ============= ================ =============
CLASS B
Sold 44,408 33,834 3,623 34,187
Issued in Reinvestment of Distributions -- -- -- --
Redeemed (25,019) (2,149) (35,164) (50,690)
---------------- ------------- ---------------- -------------
Net Increase (Decrease) in Shares 19,389 31,685 (31,541) (16,503)
================ ============= ================ =============
CLASS C
Sold 15,004 20,442 21,296 9,049
Issued in Reinvestment of Distributions -- -- -- --
Redeemed (3,825) (4,900) (19,348) (51,781)
---------------- ------------- ---------------- -------------
Net Increase (Decrease) in Shares 11,179 15,542 1,948 (42,732)
================ ============= ================ =============
78
- --------------------------------------------------------------------------------
Strong Advisor
International Core Fund Strong Advisor Select Fund
-------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002 June 30, 2003 Dec. 31, 2002
---------------- ------------- ---------------- --------------
(Unaudited) (Unaudited)
Capital Share Transactions of Each Class of
Shares of the Funds Were as Follows:
CLASS A
Proceeds from Shares Sold $ 241,189 $ 82,717 $ 18,437,671 $ 28,329,556
Proceeds from Reinvestment of Distributions -- -- -- 105,337
Payment for Shares Redeemed -- (8,947) (8,923,101) (13,665,422)
---------------- ------------- ---------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 241,189 73,770 9,514,570 14,769,471
CLASS B
Proceeds from Shares Sold 250,617 211,824 144,230 224,679
Proceeds from Reinvestment of Distributions -- -- -- 605
Payment for Shares Redeemed (22,865) (4,153) (33,485) (246,523)
---------------- ------------- ---------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 227,752 207,671 110,745 (21,239)
CLASS C
Proceeds from Shares Sold 11,286 65,008 85,587 96,740
Proceeds from Reinvestment of Distributions -- -- -- 325
Payment for Shares Redeemed -- -- (28,443) (42,582)
---------------- ------------- ---------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 11,286 65,008 57,144 54,483
---------------- ------------- ---------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ 480,227 $ 346,449 $ 9,682,459 $ 14,802,715
================ ============= ================ ==============
Transactions in Shares of Each Class of
the Funds Were as Follows:
CLASS A
Sold 25,917 9,212 2,919,444 4,115,416
Issued in Reinvestment of Distributions -- -- -- 16,256
Redeemed -- (1,012) (1,438,664) (2,090,284)
---------------- ------------- ---------------- --------------
Net Increase (Decrease) in Shares 25,917 8,200 1,480,780 2,041,388
================ ============= ================ ==============
CLASS B
Sold 27,686 23,290 23,061 34,824
Issued in Reinvestment of Distributions -- -- -- 94
Redeemed (2,747) (493) (5,305) (39,516)
---------------- ------------- ---------------- --------------
Net Increase (Decrease) in Shares 24,939 22,797 17,756 (4,598)
================ ============= ================ ==============
CLASS C
Sold 1,286 7,033 14,282 14,551
Issued in Reinvestment of Distributions -- -- -- 51
Redeemed -- -- (4,344) (6,407)
---------------- ------------- ---------------- --------------
Net Increase (Decrease) in Shares 1,286 7,033 9,938 8,195
================ ============= ================ ==============
79
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
Strong Advisor U.S.
Strong Advisor Technology Fund Small/Mid Cap Growth Fund
-------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002 June 30, 2003 Dec. 31, 2002
---------------- ------------- ---------------- --------------
(Unaudited) (Unaudited) (Note 1)
Capital Share Transactions of Each Class of
Shares of the Funds Were as Follows:
CLASS A
Proceeds from Shares Sold $ 219,233 $ 266,907 $ 204,341 $ 346,166
Proceeds from Reinvestment of Distributions -- -- -- --
Payment for Shares Redeemed (112,471) (459,954) (21,399) (1,000)
---------------- ------------- ---------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 106,762 (193,047) 182,942 345,166
CLASS B
Proceeds from Shares Sold 44,855 12,000 122,246 371,166
Proceeds from Reinvestment of Distributions -- -- -- --
Payment for Shares Redeemed (4) (12,910) -- (2,815)
---------------- ------------- ---------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 44,851 (910) 122,246 368,351
CLASS C
Proceeds from Shares Sold 4,018 30,503 287,055 230,374
Proceeds from Reinvestment of Distributions -- -- -- --
Payment for Shares Redeemed (27,378) (98,665) -- --
---------------- ------------- ---------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions (23,360) (68,162) 287,055 230,374
---------------- ------------- ---------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ 128,253 $ (262,119) $ 592,243 $ 943,891
================ ============= ================ ==============
Transactions in Shares of Each Class of
the Funds Were as Follows:
CLASS A
Sold 44,948 42,387 25,531 39,538
Issued in Reinvestment of Distributions -- -- -- --
Redeemed (23,518) (77,487) (2,516) (141)
---------------- ------------- ---------------- --------------
Net Increase (Decrease) in Shares 21,430 (35,100) 23,015 39,397
================ ============= ================ ==============
CLASS B
Sold 8,678 1,820 15,349 42,958
Issued in Reinvestment of Distributions -- -- -- --
Redeemed (1) (3,407) -- (378)
---------------- ------------- ---------------- --------------
Net Increase (Decrease) in Shares 8,677 (1,587) 15,349 42,580
================ ============= ================ ==============
CLASS C
Sold 800 4,804 36,432 24,692
Issued in Reinvestment of Distributions -- -- -- --
Redeemed (6,325) (20,272) -- --
---------------- ------------- ---------------- --------------
Net Increase (Decrease) in Shares (5,525) (15,468) 36,432 24,692
================ ============= ================ ==============
80
- --------------------------------------------------------------------------------
Strong Advisor
Utilities and Energy Fund
-----------------------------------
Six Months Ended Period Ended
June 30, 2003 Dec. 31, 2002
---------------- -------------
(Unaudited) (Note 1)
Capital Share Transactions of Each Class of
Shares of the Fund Were as Follows:
CLASS A
Proceeds from Shares Sold $ 8,852,170 $ 6,765,504
Proceeds from Reinvestment of Distributions 27,466 4,689
Payment for Shares Redeemed (405,481) (108,685)
---------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 8,474,155 6,661,508
CLASS B
Proceeds from Shares Sold 12,736 113,000
Proceeds from Reinvestment of Distributions 92 31
Payment for Shares Redeemed -- --
---------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 12,828 113,031
CLASS C
Proceeds from Shares Sold 61,070 176,187
Proceeds from Reinvestment of Distributions 568 310
Payment for Shares Redeemed -- --
---------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 61,638 176,497
---------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ 8,548,621 $ 6,951,036
================ =============
Transactions in Shares of Each Class of
the Fund Were as Follows:
CLASS A
Sold 926,703 689,582
Issued in Reinvestment of Distributions 2,867 518
Redeemed (44,396) (12,430)
---------------- --------------
Net Increase (Decrease) in Shares 885,174 677,670
================ ==============
CLASS B
Sold 1,466 11,499
Issued in Reinvestment of Distributions 10 3
Redeemed -- --
---------------- --------------
Net Increase (Decrease) in Shares 1,476 11,502
================ ==============
CLASS C
Sold 6,523 18,747
Issued in Reinvestment of Distributions 62 34
Redeemed -- --
---------------- --------------
Net Increase (Decrease) in Shares 6,585 18,781
================ ==============
81
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
Strong Advisor Large Company Core Fund
-------------------------------------------------------
Six Months Ended Period Ended Year Ended
June 30, 2003 Dec. 31, 2002 Sept. 30, 2002
---------------- ------------- --------------
(Unaudited)
Capital Share Transactions of Each Class of
Shares of the Fund Were as Follows:
CLASS A
Proceeds from Shares Sold $ 28,621,356 $ 2,892,737 $ 3,325,537
Proceeds from Reinvestment of Distributions 19,287 5,268 138,369
Payment for Shares Redeemed (1,916,020) (832,881) (484,661)
---------------- ------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 26,724,623 2,065,124 2,979,245
CLASS B
Proceeds from Shares Sold 3,609,929 391,098 100,000
Proceeds from Reinvestment of Distributions 104 -- --
Payment for Shares Redeemed (149,993) -- --
---------------- ------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 3,460,040 391,098 100,000
CLASS C
Proceeds from Shares Sold 3,066,936 385,146 100,000
Proceeds from Reinvestment of Distributions -- 69 --
Payment for Shares Redeemed (197,743) -- --
---------------- ------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 2,869,193 385,215 100,000
CLASS K
Proceeds from Shares Sold 17,702,330 -- 100,000
Proceeds from Reinvestment of Distributions 45,728 -- --
Payment for Shares Redeemed (1,151,188) -- --
---------------- ------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 16,596,870 -- 100,000
---------------- ------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ 49,650,726 $ 2,841,437 $ 3,279,245
================ ============= ==============
82
- --------------------------------------------------------------------------------
Strong Advisor Large Company Core Fund
-------------------------------------------------------
Six Months Ended Period Ended Year Ended
June 30, 2003 Dec. 31, 2002 Sept. 30, 2002
---------------- ------------- --------------
(Unaudited)
Transactions in Shares of Each Class of
the Fund Were as Follows:
CLASS A
Sold 3,138,139 322,256 359,651
Issued in Reinvestment of Distributions 2,117 599 13,573
Redeemed (213,083) (93,720) (50,178)
---------------- ------------- --------------
Net Increase (Decrease) in Shares 2,927,173 229,135 323,046
================ ============= ==============
CLASS B
Sold 400,595 43,625 12,173
Issued in Reinvestment of Distributions 12 -- --
Redeemed (15,641) -- --
---------------- ------------- --------------
Net Increase (Decrease) in Shares 384,966 43,625 12,173
================ ============= ==============
CLASS C
Sold 333,620 42,953 12,173
Issued in Reinvestment of Distributions -- 8 --
Redeemed (20,338) -- --
---------------- ------------- --------------
Net Increase (Decrease) in Shares 313,282 42,961 12,173
================ ============= ==============
CLASS K
Sold 1,978,583 7 12,173
Issued in Reinvestment of Distributions 5,065 -- --
Redeemed (128,881) -- --
---------------- ------------- --------------
Net Increase (Decrease) in Shares 1,854,767 7 12,173
================ ============= ==============
83
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
9. Income Tax Information
The following information for the Funds is presented on an income tax basis
as of June 30, 2003:
Net Unrealized
Gross Gross Appreciation/
Cost of Unrealized Unrealized (Depreciation)
Investments Appreciation Depreciation on Investments
---------------- --------------- --------------- ---------------
Strong Advisor Common Stock Fund $ 1,481,088,915 $ 290,327,594 $ (64,887,397) $ 225,440,197
Strong Advisor Mid Cap Growth Fund 81,079,250 14,001,509 (229,100) 13,772,409
Strong Advisor Small Cap Value Fund 1,329,835,250 250,951,188 (78,012,700) 172,938,488
Strong Advisor U.S. Value Fund 215,432,671 26,402,018 (6,329,830) 20,072,188
Strong Advisor Endeavor Large Cap Fund 32,228,446 3,231,046 (354,857) 2,876,189
Strong Advisor Focus Fund 3,304,002 398,194 (11,145) 387,049
Strong Advisor International Core Fund 1,077,139 88,128 (14,018) 74,110
Strong Advisor Select Fund 66,737,149 6,722,592 (660,834) 6,061,758
Strong Advisor Technology Fund 1,893,333 344,025 (138,302) 205,723
Strong Advisor U.S. Small/Mid Cap Growth Fund 1,291,261 356,491 (17,639) 338,852
Strong Advisor Utilities and Energy Fund 14,976,846 955,025 (35,104) 919,921
Strong Advisor Large Company Core Fund 59,740,389 4,157,261 (410,683) 3,746,578
The difference between cost amounts for financial statement and federal
income tax purposes is due primarily to timing differences in recognizing
certain gains and losses on security transactions.
The capital loss carryovers (expiring in varying amounts through 2010) as
of December 31, 2002, and tax basis post-October losses as of December 31,
2002, which are not recognized for tax purposes until the first day of the
following fiscal year, are:
Net Capital Post-
Loss October
Carryovers Losses
------------- -----------
Strong Advisor Common Stock Fund $ 163,553,251 $ --
Strong Advisor Mid Cap Growth Fund 126,755,765 422,205
Strong Advisor Small Cap Value Fund 8,884,388 5,125,978
Strong Advisor U.S. Value Fund 14,903,875 --
Strong Advisor Endeavor Large Cap Fund 8,704,961 54,871
Strong Advisor Focus Fund 4,618,400 25,268
Strong Advisor International Core Fund 22,212 5,477
Strong Advisor Select Fund 12,400,183 1,377,101
Strong Advisor Technology Fund 1,113,701 83,821
Strong Advisor U.S. Small/Mid Cap Growth Fund 142,262 25,893
Strong Advisor Utilities and Energy Fund 528,144 --
Strong Advisor Large Company Core Fund 1,015,803 3,039
10. Special Meeting of Shareholders of Strong Advisor Mid Cap Growth Fund
On August 1, 2003, the Strong Advisor Mid Cap Growth Fund's and Strong
Growth Fund's Board of Directors approved the reorganization of the Strong
Advisor Mid Cap Growth Fund into the Strong Growth Fund, subject to
shareholder approval at a meeting scheduled for October 31, 2003. Effective
after the close of the market on August 22, 2003 the Strong Advisor Mid Cap
Growth Fund is closed to new investors.
11. Special Meeting of Shareholders of Strong Multi Cap Value Fund
On August 1, 2003, the Strong Multi Cap Value Fund's and Strong Advisor
Small Cap Value Fund's Board of Directors approved the reorganization of
the Strong Multi Cap Value Fund into the Strong Advisor Small Cap Value
Fund, subject to shareholder approval at a meeting scheduled for October
31, 2003. Effective after the close of the market on August 22, 2003 the
Strong Multi Cap Value Fund is closed to new investors.
12. Special Meeting of Shareholders of Strong Advisor U.S. Value Fund
On August 1, 2003, the Board of Directors of the Strong Advisor U.S. Value
Fund met and approved a subadvisory agreement between Matrix Asset
Advisors, Inc. and Strong Capital Management, Inc., subject to shareholder
approval at a meeting scheduled for October 31, 2003. The subadvisory
agreement, if approved by shareholders, would be effective November 3,
2003.
84
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
STRONG ADVISOR COMMON STOCK FUND -- CLASS A
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)(d)/
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 15.87 $ 19.71 $ 20.15 $ 18.90
Income From Investment Operations:
Net Investment Income (Loss) (0.04) (0.08)/(e)/ (0.04) (0.00)/(f)/
Net Realized and Unrealized Gains (Losses)
on Investments 2.69 (3.76) (0.36) 1.28
- ----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.65 (3.84) (0.40) 1.28
Less Distributions:
From Net Investment Income -- -- -- (0.03)
From Net Realized Gains -- -- (0.04) --
- ----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.04) (0.03)
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 18.52 $ 15.87 $ 19.71 $ 20.15
================================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Total Return +16.7% -19.5% -2.0% +6.8%
Net Assets, End of Period (In Millions) $ 61 $ 46 $ 28 $ 0/(g)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.6%* 1.6% 1.6% 1.6%*
Ratio of Expenses to Average Net Assets 1.6%* 1.6% 1.6% 1.6%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (0.6%)* (0.5%) (0.5%)* (0.2%)*
Portfolio Turnover Rate/(h)/ 25.5% 64.9% 89.3% 95.4%
STRONG ADVISOR COMMON STOCK FUND -- CLASS B
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)(d)/
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 15.67 $ 19.62 $ 20.16 $ 18.90
Income From Investment Operations:
Net Investment Income (Loss) (0.10) (0.22)/(e)/ (0.09) (0.01)
Net Realized and Unrealized Gains (Losses)
on Investments 2.65 (3.73) (0.41) 1.28
- ----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.55 (3.95) (0.50) 1.27
Less Distributions:
From Net Investment Income -- -- -- (0.01)
From Net Realized Gains -- -- (0.04) --
- ----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.04) (0.01)
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 18.22 $ 15.67 $ 19.62 $ 20.16
================================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Total Return +16.3% -20.1% -2.5% +6.8%
Net Assets, End of Period (In Millions) $ 31 $ 24 $ 16 $ 0/(g)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 2.4%* 2.4% 2.5% 2.0%*
Ratio of Expenses to Average Net Assets 2.4%* 2.4% 2.3% 2.0%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.4%)* (1.3%) (1.1%)* (0.6%)*
Portfolio Turnover Rate/(h)/ 25.5% 64.9% 89.3% 95.4%
* 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, 2003 (unaudited).
(c) For the period from December 1, 2000 (public launch date) to December 31,
2000.
(d) Per share data reflects a 1.233 for 1.000 share split which occurred on
March 8, 2001.
(e) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the year.
(f) Amount calculated is less than $0.005.
(g) Amount is less than $500,000.
(h) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
See Notes to Financial Statements.
85
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR COMMON STOCK FUND -- CLASS C
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)(d)/
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 15.68 $ 19.62 $ 20.16 $ 18.90
Income From Investment Operations:
Net Investment Income (Loss) (0.11) (0.22)/(e)/ (0.09) (0.01)
Net Realized and Unrealized Gains (Losses)
on Investments 2.65 (3.72) (0.41) 1.28
- ----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.54 (3.94) (0.50) 1.27
Less Distributions:
From Net Investment Income -- -- -- (0.01)
From Net Realized Gains -- -- (0.04) --
- ----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.04) (0.01)
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 18.22 $ 15.68 $ 19.62 $ 20.16
================================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Total Return +16.2% -20.1% -2.5% +6.8%
Net Assets, End of Period (In Millions) $ 28 $ 23 $ 15 $ 0/(f)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 2.4%* 2.4%* 2.4% 2.0%*
Ratio of Expenses to Average Net Assets 2.4%* 2.4% 2.2% 2.0%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.4%)* (1.3%) (1.1%)* (0.6%)*
Portfolio Turnover Rate/(g)/ 25.5% 64.9% 89.3% 95.4%
STRONG ADVISOR COMMON STOCK FUND -- CLASS Z
- --------------------------------------------------------------------------------
Period Ended
-------------------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000 1999 1998
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 15.97 $ 19.78 $ 20.16 $ 25.21 $ 21.06 $ 21.02
Income From Investment Operations:
Net Investment Income (Loss) (0.03) (0.05)/(e)/ (0.02) 0.04 (0.01) 0.00/(h)/
Net Realized and Unrealized Gains
(Losses) on Investments 2.71 (3.76) (0.32) (0.59) 8.19 1.36
- ---------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.68 (3.81) (0.34) (0.55) 8.18 1.36
Less Distributions:
From Net Investment Income -- -- -- (0.04) -- --
From Net Realized Gains -- -- (0.04) (4.46) (4.03) (1.32)
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.04) (4.50) (4.03) (1.32)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 18.65 $ 15.97 $ 19.78 $ 20.16 $ 25.21 $ 21.06
===========================================================================================================================
Ratios and Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------
Total Return +16.8% -19.3% -1.7% -1.2% +40.4% +6.6%
Net Assets, End of Period (In Millions) $ 1,511 $ 1,363 $ 1,703 $ 1,719 $ 1,733 $ 1,440
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.4%* 1.3% 1.3% 1.2% 1.2% 1.2%
Ratio of Expenses to Average Net Assets 1.4%* 1.3% 1.3% 1.2% 1.2% 1.2%
Ratio of Net Investment Income (Loss)
to Average Net Assets (0.4%)* (0.3%) (0.1%) 0.2% (0.1%) 0.0%/(h)/
Portfolio Turnover Rate/(g)/ 25.5% 64.9% 89.3% 95.4% 80.1% 102.6%
* 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, 2003 (unaudited).
(c) For the period from December 1, 2000 (public launch date) to December 31,
2000.
(d) Per share data reflects a 1.233 for 1.000 share split which occurred on
March 8, 2001.
(e) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the year.
(f) Amount is less than $500,000.
(g) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
(h) Amount calculated is less than $0.005 or 0.05%.
See Notes to Financial Statements.
86
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR MID CAP GROWTH FUND -- CLASS A
- --------------------------------------------------------------------------------
Period Ended
-----------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)(d)/
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 8.71 $ 13.95 $ 20.22 $ 17.71
Income From Investment Operations:
Net Investment Income (Loss) (0.07) (0.14)/(e)/ (0.22)/(e)/ (0.01)
Net Realized and Unrealized Gains (Losses)
on Investments 1.89 (5.10) (6.05) 2.52
- ----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.82 (5.24) (6.27) 2.51
Less Distributions:
From Net Investment Income -- -- -- --
- ----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- --
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.53 $ 8.71 $ 13.95 $ 20.22
================================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Total Return +20.9% -37.6% -31.0% +14.2%
Net Assets, End of Period (In Millions) $ 9 $ 6 $ 7 $ 1
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.6%* 1.6% 1.8% 1.7%*
Ratio of Expenses to Average Net Assets 1.6%* 1.6% 1.8% 1.7%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.3%)* (1.3%) (1.4%) (1.3%)*
Portfolio Turnover Rate/(f)/ 160.1% 526.6% 650.0% 683.7%
STRONG ADVISOR MID CAP GROWTH FUND -- CLASS B
- --------------------------------------------------------------------------------
Period Ended
-----------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)(d)/
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 8.59 $ 13.89 $ 20.21 $ 17.71
Income From Investment Operations:
Net Investment Income (Loss) (0.10) (0.23)/(e)/ (0.28)/(e)/ (0.02)
Net Realized and Unrealized Gains (Losses)
on Investments 1.85 (5.07) (6.04) 2.52
- ----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.75 (5.30) (6.32) 2.50
Less Distributions:
From Net Investment Income -- -- -- --
- ----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- --
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.34 $ 8.59 $ 13.89 $ 20.21
================================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Total Return +20.4% -38.2% -31.3% +14.1%
Net Assets, End of Period (In Millions) $ 3 $ 2 $ 3 $ 0/(g)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 2.6%* 2.6% 2.9% 2.0%*
Ratio of Expenses to Average Net Assets 2.4%* 2.5% 2.3% 2.0%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (2.1%)* (2.2%) (1.9%) (1.6%)*
Portfolio Turnover Rate/(f)/ 160.1% 526.6% 650.0% 683.7%
* 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, 2003 (unaudited).
(c) For the period from December 1, 2000 (public launch date) to December 31,
2000.
(d) Per share data reflects a 1.053 for 1.000 share split which occurred on
March 8, 2001.
(e) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the year.
(f) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
(g) Amount is less than $500,000.
See Notes to Financial Statements.
87
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR MID CAP GROWTH FUND -- CLASS C
- --------------------------------------------------------------------------------
Period Ended
-----------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)(d)/
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 8.59 $ 13.88 $ 20.20 $ 17.71
Income From Investment Operations:
Net Investment Income (Loss) (0.10) (0.23)/(e)/ (0.28)/(e)/ (0.02)
Net Realized and Unrealized Gains (Losses)
on Investments 1.85 (5.06) (6.04) 2.51
- ----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.75 (5.29) (6.32) 2.49
Less Distributions:
From Net Investment Income -- -- -- --
- ----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- --
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.34 $ 8.59 $ 13.88 $ 20.20
================================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Total Return +20.4% -38.1% -31.3% +14.1%
Net Assets, End of Period (In Millions) $ 1 $ 1 $ 1 $ 0/(f)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 2.6%* 2.5% 2.8% 2.0%*
Ratio of Expenses to Average Net Assets 2.4%* 2.4% 2.3% 2.0%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (2.1%)* (2.2%) (1.9%) (1.6%)*
Portfolio Turnover Rate/(g)/ 160.1% 526.6% 650.0% 683.7%
STRONG ADVISOR MID CAP GROWTH FUND -- CLASS Z
- --------------------------------------------------------------------------------
Period Ended
--------------------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000 1999 1998
- -------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 8.70 $ 13.97 $ 20.21 $ 23.25 $ 13.03 $ 11.38
Income From Investment Operations:
Net Investment Income (Loss) (0.07) (0.16)/(e)/ (0.19) (0.15) (0.12) (0.12)
Net Realized and Unrealized Gains (Losses)
on Investments 1.87 (5.11) (6.05) (1.90) 12.08 1.77
- -------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.80 (5.27) (6.24) (2.05) 11.96 1.65
Less Distributions:
From Net Realized Gains -- -- -- (0.99) (1.74) --
- -------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- (0.99) (1.74) --
- -------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.50 $ 8.70 $ 13.97 $ 20.21 $ 23.25 $ 13.03
===============================================================================================================================
Ratios and Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------------
Total Return +20.7% -37.7% -30.9% -8.6% +92.0% +14.5%
Net Assets, End of Period (In Millions) $ 79 $ 65 $ 128 $ 185 $ 65 $ 19
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.9%* 1.8% 1.6% 1.4% 1.6% 1.7%
Ratio of Expenses to Average Net Assets 1.8%* 1.8% 1.6% 1.3% 1.6% 1.7%
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.5%)* (1.5%) (1.2%) (0.9%) (1.1%) (0.9%)
Portfolio Turnover Rate/(g)/ 160.1% 526.6% 650.0% 683.7% 681.0% 206.9%
* 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, 2003 (unaudited).
(c) For the period from December 1, 2000 (public launch date) to December 31,
2000.
(d) Per share data reflects a 1.053 for 1.000 share split which occurred on
March 8, 2001.
(e) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the year.
(f) Amount is less than $500,000.
(g) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
See Notes to Financial Statements.
88
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR SMALL CAP VALUE FUND -- CLASS A
- --------------------------------------------------------------------------------
Period Ended
-----------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)/
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 18.92 $ 20.17 $ 17.17 $ 15.36
Income From Investment Operations:
Net Investment Income (Loss) (0.08) 0.3/(d)/ (0.14)/(d)/ (0.00)/(e)/
Net Realized and Unrealized Gains (Losses)
on Investments 2.77 (1.28) 3.18 1.81
- ----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.69 (1.25) 3.04 1.81
Less Distributions:
From Net Realized Gains -- -- (0.04) --
- ----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.04) --
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 21.61 $ 18.92 $ 20.17 $ 17.17
================================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Total Return +14.2% -6.2% +17.7% +11.8%
Net Assets, End of Period (In Millions) $ 449 $ 335 $ 169 $ 1
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.6%* 1.6% 1.6% 1.6%*
Ratio of Expenses to Average Net Assets 1.5%* 1.6% 1.6% 1.6%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (0.9%)* 0.1% (0.7%) (0.8%)*
Portfolio Turnover Rate/(f)/ 16.9% 28.2% 42.0% 60.3%
STRONG ADVISOR SMALL CAP VALUE FUND -- CLASS B
- --------------------------------------------------------------------------------
Period Ended
-----------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)/
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 18.66 $ 20.05 $ 17.16 $ 15.36
Income From Investment Operations:
Net Investment Income (Loss) (0.15) (0.14)/(d)/ (0.25)/(d)/ (0.01)
Net Realized and Unrealized Gains (Losses)
on Investments 2.71 (1.25) 3.18 1.81
- ----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.56 (1.39) 2.93 1.80
Less Distributions:
From Net Realized Gains -- -- (0.04) --
- ----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.04) --
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 21.22 $ 18.66 $ 20.05 $ 17.16
================================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Total Return +13.7% -6.9% +17.1% +11.7%
Net Assets, End of Period (In Millions) $ 94 $ 76 $ 40 $ 0/(g)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 2.3%* 2.4% 2.5% 2.0%*
Ratio of Expenses to Average Net Assets 2.3%* 2.4% 2.3% 1.8%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.7%)* (0.7%) (1.4%) (0.8%)*
Portfolio Turnover Rate/(f)/ 16.9% 28.2% 42.0% 60.3%
* 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, 2003 (unaudited).
(c) For the period from December 1, 2000 (public launch date) to December 31,
2000.
(d) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the year.
(e) Amount calculated is less than $0.005.
(f) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
(g) Amount is less than $500,000.
See Notes to Financial Statements.
89
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR SMALL CAP VALUE FUND -- CLASS C
- --------------------------------------------------------------------------------
Period Ended
-----------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)/
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 18.68 $ 20.07 $ 17.17 $ 15.36
Income From Investment Operations:
Net Investment Income (Loss) (0.15) (0.13)/(d)/ (0.24)/(d)/ (0.01)
Net Realized and Unrealized Gains (Losses)
on Investments 2.73 (1.26) 3.18 1.82
- ----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.58 (1.39) (2.94) 1.81
Less Distributions:
From Net Realized Gains -- -- (0.04) --
- ----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.04) --
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 21.26 $ 18.68 $ 20.07 $ 17.17
================================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Total Return +13.8% -6.9% +17.1% +11.8%
Net Assets, End of Period (In Millions) $ 125 $ 98 $ 38 $ 0/(e)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 2.3%* 2.4% 2.4% 2.0%*
Ratio of Expenses to Average Net Assets 2.3%* 2.4% 2.2% 1.8%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.6%)* (0.6%) (1.4%) (0.7%)*
Portfolio Turnover Rate/(f)/ 16.9% 28.2% 42.0% 60.3%
STRONG ADVISOR SMALL CAP VALUE FUND -- CLASS Z
- --------------------------------------------------------------------------------
Period Ended
---------------------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000 1999 1998
- --------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 18.98 $ 20.22 $ 17.17 $ 13.59 $ 10.61 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.07) (0.04)/(d)/ (0.08) 0.00/(g)/ (0.08) (0.07)
Net Realized and Unrealized Gains (Losses)
on Investments 2.79 (1.28) 3.17 3.58 3.06 0.68
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.72 (1.24) (3.09) 3.58 2.98 0.61
Less Distributions:
From Net Realized Gains -- -- (0.04) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.04) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 21.70 $ 18.98 $ 20.22 $ 17.17 $ 13.59 $ 10.61
=================================================================================================================================
Ratios and Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return +14.3% -6.1% +18.0% +26.3% +28.1% +6.1%
Net Assets, End of Period (In Millions) $ 830 $ 659 $ 541 $ 249 $ 45 $ 24
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.4%* 1.5% 1.4% 1.4% 1.7% 1.9%
Ratio of Expenses to Average Net Assets 1.4%* 1.5% 1.4% 1.4% 1.7% 1.9%
Ratio of Net Investment Income (Loss) to
Average Net Assets (0.7%)* 0.2% (0.5%) 0.0%/(g)/ (1.0%) (1.0%)
Portfolio Turnover Rate/(f)/ 16.9% 28.2% 42.0% 60.3% 95.5% 121.5%
* 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, 2003 (unaudited).
(c) For the period from December 1, 2000 (public launch date) to December 31,
2000.
(d) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the year.
(e) Amount is less than $500,000.
(f) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
(g) Calculated amount is less than $0.005 or 0.05%.
See Notes to Financial Statements.
90
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR U.S. VALUE FUND -- CLASS A
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)(d)/
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 13.66 $ 17.83 $ 20.65 $ 19.99
Income From Investment Operations:
Net Investment Income (Loss) 0.06 0.12/(f)/ 0.05 0.00/(e)/
Net Realized and Unrealized Gains (Losses)
on Investments 1.53 (2.77) (2.56) 0.68
- -----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.59 (2.65) (2.51) 0.68
Less Distributions:
From Net Investment Income (0.07) (0.16) (0.06) (0.02)
From Net Realized Gains -- (1.36) (0.25) --
- -----------------------------------------------------------------------------------------------------------------
Total Distributions (0.07) (1.52) (0.31) (0.02)
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 15.18 $ 13.66 $ 17.83 $ 20.65
=================================================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------------------------
Total Return +11.6% -16.3% -12.2% +3.4%
Net Assets, End of Period (In Millions) $ 3 $ 3 $ 3 $ 0/(g)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.4%* 1.3% 1.8% 1.3%*
Ratio of Expenses to Average Net Assets 1.4%* 1.3% 1.8% 1.3%*
Ratio of Net Investment Income (Loss) to
Average Net Assets 0.9%* 0.9% 0.1% 0.1%*
Portfolio Turnover Rate/(h)/ 32.7% 89.8% 116.1% 14.4%
STRONG ADVISOR U.S. VALUE FUND -- CLASS B
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)(d)/
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 13.67 $ 17.81 $ 20.66 $ 19.99
Income From Investment Operations:
Net Investment Income (Loss) 0.01 0.02/(f)/ (0.00)/(e)/ (0.01)
Net Realized and Unrealized Gains (Losses)
on Investments 1.52 (2.78) (2.60) 0.69
- -----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.53 (2.76) (2.60) 0.68
Less Distributions:
From Net Investment Income (0.01) (0.02) -- (0.01)
From Net Realized Gains -- (1.36) (0.25) --
- -----------------------------------------------------------------------------------------------------------------
Total Distributions (0.01) (1.38) (0.25) (0.01)
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 15.19 $ 13.67 $ 17.81 $ 20.66
=================================================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------------------------
Total Return +11.2% -17.0% -12.6% +3.4%
Net Assets, End of Period (In Millions) $ 4 $ 3 $ 2 $ 0/(g)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 2.2%* 2.2% 2.9% 2.0%*
Ratio of Expenses to Average Net Assets 2.2%* 2.1% 2.3% 2.0%*
Ratio of Net Investment Income (Loss) to
Average Net Assets 0.2%* 0.1% (0.4%) (0.5%)*
Portfolio Turnover Rate/(h)/ 32.7% 89.8% 116.1% 14.4%
* 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, 2003 (unaudited).
(c) For the period from December 1, 2000 (public launch date) to December 31,
2000.
(d) Per share data reflects a 1.023 for 1.000 share split which occurred on
March 8, 2001.
(e) Amount calculated is less than $0.005.
(f) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the year.
(g) Amount is less than $500,000.
(h) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
See Notes to Financial Statements.
91
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR U.S. VALUE FUND -- CLASS C
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)(d)/
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 13.61 $ 17.82 $ 20.66 $ 19.99
Income From Investment Operations:
Net Investment Income (Loss) 0.01 0.02/(f)/ (0.00)/(e)/ (0.01)
Net Realized and Unrealized Gains (Losses)
on Investments 1.52 (2.78) (2.59) 0.69
- -----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.53 (2.76) (2.59) 0.68
Less Distributions:
From Net Investment Income (0.01) (0.09) -- (0.01)
From Net Realized Gains -- (1.36) (0.25) --
- -----------------------------------------------------------------------------------------------------------------
Total Distributions (0.01) (1.45) (0.25) (0.01)
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 15.13 $ 13.61 $ 17.82 $ 20.66
=================================================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------------------------
Total Return +11.3% -17.1% -12.6% +3.4%
Net Assets, End of Period (In Millions) $ 2 $ 1 $ 1 $ 0/(g)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 2.3%* 2.2% 2.4% 2.0%*
Ratio of Expenses to Average Net Assets 2.2%* 2.2% 2.2% 2.0%*
Ratio of Net Investment Income (Loss) to
Average Net Assets 0.1%* 0.2% (0.3%) (0.5%)*
Portfolio Turnover Rate/(h)/ 32.7% 89.8% 116.1% 14.4%
STRONG ADVISOR U.S. VALUE FUND -- CLASS K
- --------------------------------------------------------------------------------
Period Ended
-----------------------------
June 30, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002
- ----------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 13.56 $ 17.87
Income From Investment Operations:
Net Investment Income (Loss) 0.09 0.22/(f)/
Net Realized and Unrealized Gains (Losses)
on Investments 1.52 (2.81)
- ----------------------------------------------------------------------------------------------
Total from Investment Operations 1.61 (2.59)
Less Distributions:
From Net Investment Income (0.09) (0.36)
From Net Realized Gains -- (1.36)
- ----------------------------------------------------------------------------------------------
Total Distributions (0.09) (1.72)
- ----------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 15.08 $ 13.56
==============================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------
Total Return +11.9% -16.0%
Net Assets, End of Period (In Millions) $ 14 $ 11
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.1%* 1.1%
Ratio of Expenses to Average Net Assets 1.0%* 1.0%
Ratio of Net Investment Income (Loss)
to Average Net Assets 1.4%* 1.6%
Portfolio Turnover Rate/(h)/ 32.7% 89.8%
* 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, 2003 (unaudited).
(c) For the period from December 1, 2000 (public launch date) to December 31,
2000.
(d) Per share data reflects a 1.023 for 1.000 share split which occurred on
March 8, 2001.
(e) Amount calculated is less than $0.005.
(f) Net investment income (loss) per share represents new investment income
(loss) divided by average shares outstanding throughout the year.
(g) Amount is less than $500,000.
(h) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
See Notes to Financial Statements.
92
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR U.S. VALUE FUND -- CLASS Z
- --------------------------------------------------------------------------------
Period Ended
---------------------------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Oct. 31, Oct. 31, Oct. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)/ 2000 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 13.74 $ 17.87 $ 20.65 $ 21.63 $ 20.58 $ 17.20 $ 15.84
Income From Investment Operations:
Net Investment Income (Loss) 0.04 0.05/(d)/ 0.11 0.03 0.05 0.06 0.11
Net Realized and Unrealized Gains
(Losses) on Investments 1.54 (2.79) (2.53) (0.52) 1.53 3.39 2.05
- -----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.58 (2.74) (2.42) (0.49) 1.58 3.45 2.16
Less Distributions:
From Net Investment Income (0.04) (0.03) (0.11) (0.03) (0.05) (0.07) (0.11)
From Net Realized Gains -- (1.36) (0.25) (0.46) (0.48) -- (0.69)
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.04) (1.39) (0.36) (0.49) (0.53) (0.07) (0.80)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 15.28 $ 13.74 $ 17.87 $ 20.65 $ 21.63 $ 20.58 $ 17.20
===================================================================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return +11.5% -16.9% -11.7% -2.2% +7.7% +20.1% +14.2%
Net Assets, End of Period (In Millions) $ 197 $ 197 $ 186 $ 251 $ 252 $ 182 $ 171
Ratio of Expenses to Average Net Assets 1.8%* 1.9% 1.2% 1.1%* 1.0% 1.1% 1.1%
before Expense Offsets
Ratio of Expenses to Average Net Assets 1.8%* 1.9% 1.2% 1.1%* 1.0% 1.1% 1.1%
Ratio of Net Investment Income (Loss)
to Average Net Assets 0.6%* 0.3% 0.6% 0.8%* 0.3% 0.3% 0.7%
Portfolio Turnover Rate/(e)/ 32.7% 89.8% 116.1% 14.4% 46.5% 32.3% 83.2%
STRONG ADVISOR ENDEAVOR LARGE CAP FUND -- CLASS A
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------
June 30, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001/(f)/
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 7.55 $ 10.59 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.03) (0.10)/(d)/ (0.01)
Net Realized and Unrealized Gains (Losses) on Investments 1.09 (2.94) 0.86/(g)/
- -----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.06 (3.04) 0.85
Less Distributions:
From Net Realized Gains -- -- (0.26)
- -----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.26)
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 8.61 $ 7.55 $ 10.59
=================================================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------------------------
Total Return +14.0% -28.7% +8.5%
Net Assets, End of Period (In Millions) $ 34 $ 28 $ 28
Ratio of Expenses to Average Net Assets before Expense
Offsets 1.8%* 2.0% 2.4%*
Ratio of Expenses to Average Net Assets 1.7%* 2.0% 2.4%*
Ratio of Net Investment Income (Loss) to Average Net
Assets (0.9%)* (1.2%) (1.1%)*
Portfolio Turnover Rate/(e)/ 119.5% 420.4% 54.0%
* 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, 2003 (unaudited).
(c) In 2000, the Fund changed its fiscal year-end from October to December.
(d) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the year.
(e) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
(f) For the period from October 1, 2001 (public launch date) to December 31,
2001.
(g) The amount shown may not correlate with the aggregate gains and losses of
portfolio securities due to the timing of subscriptions and redemptions of
fund shares.
See Notes to Financial Statements.
93
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR ENDEAVOR LARGE CAP FUND -- CLASS B
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------
June 30, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001/(c)/
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 7.51 $ 10.57 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.05) (0.12)/(d)/ (0.04)
Net Realized and Unrealized Gains (Losses) on Investments 1.07 (2.94) 0.87/(e)/
- -----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.02 (3.06) 0.83
Less Distributions:
From Net Realized Gains -- -- (0.26)
- -----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.26)
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 8.53 $ 7.51 $ 10.57
=================================================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------------------------
Total Return +13.6% -29.0% +8.3%
Net Assets, End of Period (In Millions) $ 1 $ 0/(f)/ $ 0/(f)/
Ratio of Expenses to Average Net Assets before Expense
Offsets 3.3%* 4.7% 2.7%*
Ratio of Expenses to Average Net Assets 2.5%* 2.2% 2.6%*
Ratio of Net Investment Income (Loss) to Average Net
Assets (1.6%)* (1.4%) (1.6%)*
Portfolio Turnover Rate/(g)/ 119.5% 420.4% 54.0%
STRONG ADVISOR ENDEAVOR LARGE CAP FUND -- CLASS C
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------
June 30, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001/(c)/
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 7.51 $ 10.57 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.05) (0.13)/(d)/ (0.04)
Net Realized and Unrealized Gains (Losses) on Investments 1.07 (2.93) 0.87/(e)/
- -----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.02 (3.06) 0.83
Less Distributions:
From Net Realized Gains -- -- (0.26)
- -----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.26)
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 8.53 $ 7.51 $ 10.57
=================================================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------------------------
Total Return +13.6% -29.0% +8.3%
Net Assets, End of Period (In Millions) $ 0/(f)/ $ 0/(f)/ $ 0/(f)/
Ratio of Expenses to Average Net Assets before Expense
Offsets 3.4%* 4.2% 2.7%*
Ratio of Expenses to Average Net Assets 2.5%* 2.3% 2.6%*
Ratio of Net Investment Income (Loss) to Average Net Assets (1.6%)* (1.5%) (1.6%)*
Portfolio Turnover Rate/(g)/ 119.5% 420.4% 54.0%
* 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, 2003 (unaudited).
(c) For the period from October 1, 2001 (public launch date) to December 31,
2001.
(d) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the year.
(e) The amount shown may not correlate with the aggregate gains and losses of
portfolio securities due to the timing of subscriptions and redemptions of
fund shares.
(f) Amount is less than $500,000.
(g) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
See Notes to Financial Statements.
94
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR FOCUS FUND -- CLASS A
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)/
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 4.79 $ 6.62 $ 10.26 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.03) (0.10)/(d)/ (0.07) (0.01)
Net Realized and Unrealized Gains (Losses)
on Investments 0.44 (1.73) (3.57) 0.27
- -----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.41 (1.83) (3.64) 0.26
Less Distributions:
From Net Investment Income -- -- -- --
- -----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- --
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 5.20 $ 4.79 $ 6.62 $ 10.26
=================================================================================================================
Ratios and Supplemental Data
- -------------------------------------------------------------------------------------------------------------------
Total Return +8.6% -27.6% -35.5% +2.6%
Net Assets, End of Period (In Millions) $ 2 $ 2 $ 5 $ 1
Ratio of Expenses to Average Net Assets
before Expense Offsets 3.4%* 2.9% 3.4% 7.3%*
Ratio of Expenses to Average Net Assets 1.5%* 2.1% 1.5% 2.4%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.2%)* (1.7%) (0.9%) (1.0%)*
Portfolio Turnover Rate/(f)/ 187.1% 350.1% 605.7% 45.1%
STRONG ADVISOR FOCUS FUND -- CLASS B
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)/
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 4.73 $ 6.55 $ 10.23 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.05) (0.11)/(d)/ (0.08) (0.01)
Net Realized and Unrealized Gains (Losses)
on Investments 0.43 (1.71) (3.60) 0.24
- -----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.38 (1.82) (3.68) 0.23
Less Distributions:
From Net Investment Income -- -- -- --
- -----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- --
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 5.11 $ 4.73 $ 6.55 $ 10.23
=================================================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------------------------
Total Return +8.0% -27.8% -36.0% +2.3%
Net Assets, End of Period (In Millions) $ 1 $ 1 $ 2 $ 0/(e)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 4.5%* 4.1% 4.6% 8.1%*
Ratio of Expenses to Average Net Assets 2.2%* 2.4% 2.4% 3.1%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.9%)* (2.0%) (1.7%) (1.6%)*
Portfolio Turnover Rate/(f)/ 187.1% 350.1% 605.7% 45.1%
* 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, 2003 (unaudited).
(c) For the period from December 1, 2000 (public launch date) to December 31,
2000.
(d) Net investment income (loss) per share represents new investment income
(loss) divided by average shares outstanding throughout the year.
(e) Amount is less than $500,000.
(f) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
See Notes to Financial Statements.
95
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR FOCUS FUND -- CLASS C
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)/
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 4.73 $ 6.55 $ 10.23 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.05) (0.11)/(d)/ (0.09) (0.02)
Net Realized and Unrealized Gains (Losses)
on Investments 0.43 (1.71) (3.59) 0.25
- -----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.38 (1.82) (3.68) 0.23
Less Distributions:
From Net Investment Income -- -- -- --
- -----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- --
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 5.11 $ 4.73 $ 6.55 $ 10.23
=================================================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------------------------
Total Return +8.0% -27.8% -36.0% +2.3%
Net Assets, End of Period (In Millions) $ 0/(e)/ $ 0/(e)/ $ 1 $ 0/(e)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 4.4%* 3.9% 4.3% 8.1%*
Ratio of Expenses to Average Net Assets 2.2%* 2.4% 2.4% 4.5%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.9%)* (2.0%) (1.7%) (2.7%)*
Portfolio Turnover Rate/(f)/ 187.1% 350.1% 605.7% 45.1%
STRONG ADVISOR INTERNATIONAL CORE FUND -- CLASS A
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------
June 30, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001/(g)/
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 8.84 $ 10.41 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) 0.08 (0.06)/(d)/ (0.03)
Net Realized and Unrealized Gains (Losses)
on Investments 0.70 (1.51) 0.44
- -----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.78 (1.57) 0.41
Less Distributions:
From Net Investment Income -- -- --
- -----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- --
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.62 $ 8.84 $ 10.41
=================================================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------------------------
Total Return +8.8% -15.1% +4.1%
Net Assets, End of Period (In Millions) $ 0/(e)/ $ 0/(e)/ $ 0/(e)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 9.3%* 52.4% 2.2%*
Ratio of Expenses to Average Net Assets 0.2%* 2.2% 2.2%*
Ratio of Net Investment Income (Loss) to
Average Net Assets 3.2%* (0.6%) (1.1%)*
Portfolio Turnover Rate/(f)/ 16.7% 46.9% 4.0%
* 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, 2003 (unaudited).
(c) For the period from December 1, 2000 (public launch date) to December 31,
2000.
(d) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the year.
(e) Amount is less than $500,000.
(f) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
(g) For the period from October 1, 2001 (public launch date) to December 31,
2001.
See Notes to Financial Statements.
96
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR INTERNATIONAL CORE FUND -- CLASS B
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------
June 30, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001/(c)/
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 8.82 $ 10.40 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) 0.10 (0.08)/(d)/ (0.04)
Net Realized and Unrealized Gains (Losses)
on Investments 0.68 (1.50) 0.44
- -----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.78 (1.58) 0.40
Less Distributions:
From Net Investment Income -- -- --
- -----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- --
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.60 $ 8.82 $ 10.40
=================================================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------------------------
Total Return +8.8% -15.2% +4.0%
Net Assets, End of Period (In Millions) $ 1 $ 0/(e)/ $ 0/(e)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 10.1%* 52.0% 3.0%*
Ratio of Expenses to Average Net Assets 0.4%* 2.4% 2.7%*
Ratio of Net Investment Income (Loss) to
Average Net Assets 3.0%* (0.8%) (1.6%)*
Portfolio Turnover Rate/(f)/ 16.7% 46.9% 4.0%
STRONG ADVISOR INTERNATIONAL CORE FUND -- CLASS C
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------
June 30, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001/(c)/
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 8.82 $ 10.40 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) 0.12 (0.06)/(d)/ (0.04)
Net Realized and Unrealized Gains (Losses)
on Investments 0.65 (1.52) 0.44
- -----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.77 (1.58) 0.40
Less Distributions:
From Net Investment Income -- -- --
- -----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- --
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.59 $ 8.82 $ 10.40
=================================================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------------------------
Total Return +8.7% -15.2% +4.0%
Net Assets, End of Period (In Millions) $ 0/(e)/ $ 0/(e)/ $ 0/(e)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 10.4%* 52.5% 3.0%*
Ratio of Expenses to Average Net Assets 0.5%* 2.4% 2.7%*
Ratio of Net Investment Income (Loss) to
Average Net Assets 2.8%* (0.7%) (1.6%)*
Portfolio Turnover Rate/(f)/ 16.7% 46.9% 4.0%
* 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, 2003 (unaudited).
(c) For the period from October 1, 2001 (public launch date) to December 31,
2001.
(d) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the year.
(e) Amount is less than $500,000.
(f) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
See Notes to Financial Statements.
97
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR SELECT FUND -- CLASS A
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------
June 30, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 6.10 $ 7.99 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.03) (0.07)/(c)/ (0.01)
Net Realized and Unrealized Gains (Losses) on Investments 0.77 (1.81) (2.00)/(d)/
- -----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.74 (1.88) (2.01)
Less Distributions:
From Net Realized Gains -- (0.01) --
- -----------------------------------------------------------------------------------------------------------------
Total Distributions -- (0.01) --
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 6.84 $ 6.10 $ 7.99
=================================================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------------------------
Total Return +12.1% -23.5% -20.1%
Net Assets, End of Period (In Millions) $ 73 $ 56 $ 57
Ratio of Expenses to Average Net Assets before Expense
Offsets 1.7%* 1.6% 4.4%
Ratio of Expenses to Average Net Assets 1.7%* 1.6% 1.7%
Ratio of Net Investment Income (Loss) to Average Net Assets (1.1%)* (1.1%) (0.8%)
Portfolio Turnover Rate/(e)/ 112.2% 437.3% 359.7%
STRONG ADVISOR SELECT FUND -- CLASS B
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------
June 30, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 6.02 $ 7.94 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.05) (0.12)(c) (0.09)
Net Realized and Unrealized Gains (Losses) on Investments 0.74 (1.79) (1.97)/(d)/
- -----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.69 (1.91) (2.06)
Less Distributions:
From Net Realized Gains -- (0.01) --
- -----------------------------------------------------------------------------------------------------------------
Total Distributions -- (0.01) --
- -----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 6.71 $ 6.02 $ 7.94
=================================================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------------------------
Total Return +11.5% -24.0% -20.6%
Net Assets, End of Period (In Millions) $ 0/(f)/ $ 0/(f)/ $ 0/(f)/
Ratio of Expenses to Average Net Assets before
Expense Offsets 2.5%* 2.4% 12.4%
Ratio of Expenses to Average Net Assets 2.5%* 2.4% 2.5%
Ratio of Net Investment Income (Loss) to Average
Net Assets (1.8%)* (1.9%) (1.7%)
Portfolio Turnover Rate/(e)/ 112.2% 437.3% 359.7%
* Calculated on an annual 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, 2003 (unaudited).
(c) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the year.
(d) The amount shown may not correlate with the aggregate gains and losses of
portfolio securities due to the timing of subscriptions and redemptions of
fund shares.
(e) Calculated on the basis of the Fund as a while without distinguishing
between the classes of shares issued.
(f) Amount is less than $500,000.
See Notes to Financial Statements.
98
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR SELECT FUND -- CLASS C
- --------------------------------------------------------------------------------
Period Ended
--------------------------------------------------
June 30, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001
- ----------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 6.02 $ 7.93 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.06) (0.12)/(c)/ (0.10)
Net Realized and Unrealized Gains (Losses) on
Investments 0.76 (1.78) (1.97)/(d)/
- ----------------------------------------------------------------------------------------------------
Total from Investment Operations 0.70 (1.90) (2.07)
Less Distributions:
From Net Realized Gains -- (0.01) --
- ----------------------------------------------------------------------------------------------------
Total Distributions -- (0.01) --
- ----------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 6.72 $ 6.02 $ 7.93
====================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------
Total Return +11.6% -24.0% -20.7%
Net Assets, End of Period (In Millions) $ 0/(e)/ $ 0/(e)/ $ 0/(e)/
Ratio of Expenses to Average Net Assets before
Expense Offsets 2.6%* 2.3% 12.8%
Ratio of Expenses to Average Net Assets 2.5%* 2.3% 2.5%
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.8%)* (1.8%) (1.7%)
Portfolio Turnover Rate/(f)/ 112.2% 437.3% 359.7%
STRONG ADVISOR TECHNOLOGY FUND -- CLASS A
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(g)/
- --------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 4.24 $ 7.22 $ 9.27 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.04) (0.11)/(c)/ (0.05) (0.05)
Net Realized and Unrealized Gains (Losses) on
Investments 1.41 (2.87) (1.99) (0.68)
- --------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.37 (2.98) (2.04) (0.73)
Less Distributions:
From Net Realized Gains -- -- (0.01) --
- --------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.01) --
- --------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 5.61 $ 4.24 $ 7.22 $ 9.27
====================================================================================================================
Ratios and Supplemental Data
- --------------------------------------------------------------------------------------------------------------------
Total Return +32.3% -41.3% -22.0% -7.3%
Net Assets, End of Period (In Millions) $ 2 $ 1 $ 2 $ 0/(e)/
Ratio of Expenses to Average Net Assets before
Expense Offsets 4.1%* 3.3% 7.0% 17.2%*
Ratio of Expenses to Average Net Assets 2.1%* 2.3% 1.6% 9.5%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.9%)* (2.1%) (1.0%) (8.2%)*
Portfolio Turnover Rate/(f)/ 114.1% 136.5% 157.9% 49.3%
* 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, 2003 (unaudited).
(c) Net investment income (loss) per share represents new investment income
(loss) divided by average shares outstanding throughout the year.
(d) The amount shown may not correlate with the aggregate gains and losses of
portfolio securities due to the timing of subscriptions and redemptions of
fund shares.
(e) Amount is less than $500,000.
(f) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
(g) For the period from December 1, 2000 (public launch date) to December 31,
2000.
See Notes to Financial Statements.
99
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR TECHNOLOGY FUND -- CLASS B
- --------------------------------------------------------------------------------
Period Ended
---------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)/
- ------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 4.17 $ 7.13 $ 9.26 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.04) (0.11)/(d)/ (0.09) (0.08)
Net Realized and Unrealized Gains
(Losses) on Investments 1.40 (2.85) (2.03) (0.66)
- ------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.36 (2.96) (2.12) (0.74)
Less Distributions:
From Net Realized Gains -- -- (0.01) --
- ------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.01) --
- ------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 5.53 $ 4.17 $ 7.13 $ 9.26
==================================================================================================================
Ratios and Supplemental Data
- ------------------------------------------------------------------------------------------------------------------
Total Return +32.6% -41.5% -22.9% -7.4%
Net Assets, End of Period (In Millions) $ 0/(e)/ $ 0/(e)/ $ 0/(e)/ $ 0/(e)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 5.1%* 4.5% 9.3% 17.3%*
Ratio of Expenses to Average Net Assets 2.1%* 2.4% 2.5% 11.1%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.9%)* (2.2%) (1.9%) (9.7%)*
Portfolio Turnover Rate/(f)/ 114.1% 136.5% 157.9% 49.3%
STRONG ADVISOR TECHNOLOGY FUND -- CLASS C
- --------------------------------------------------------------------------------
Period Ended
-------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)/
- ----------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 4.16 $ 7.11 $ 9.26 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.04) (0.12)/(d)/ (0.09) (0.08)
Net Realized and Unrealized Gains (Losses)
on Investments 1.40 (2.83) (2.05) (0.66)
- ----------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.36 (2.95) (2.14) (0.74)
Less Distributions:
From Net Realized Gains -- -- (0.01) --
- ----------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.01) --
- ----------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 5.52 $ 4.16 $ 7.11 $ 9.26
======================================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------
Total Return +32.7% -41.5% -23.1% -7.4%
Net Assets, End of Period (In Millions) $ 0/(e)/ $ 0/(e)/ $ 1 $ 0/(e)/
Ratio of Expenses to Average Net Assets before
Expense Offsets 5.0%* 4.2% 8.9% 17.3%*
Ratio of Expenses to Average Net Assets 2.1%* 2.5% 2.4% 11.1%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.9%)* (2.2%) (1.8%) (9.7%)*
Portfolio Turnover Rate/(f)/ 114.1% 136.5% 157.9% 49.3%
* 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, 2003 (unaudited).
(c) For the period from December 1, 2000 (public launch date) to December 31,
2000.
(d) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the year.
(e) Amount is less than $500,000.
(f) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
See Notes to Financial Statements.
100
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR U.S. SMALL/MID CAP GROWTH FUND -- CLASS A
- --------------------------------------------------------------------------------
Period Ended
------------------------------------
June 30, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002/(c)/
- -------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 7.14 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.07) (0.14)/(d)/
Net Realized and Unrealized Gains (Losses)
on Investments 1.99 (2.72)
- -------------------------------------------------------------------------------------------
Total from Investment Operations 1.92 (2.86)
Less Distributions:
From Net Investment Income -- --
- -------------------------------------------------------------------------------------------
Total Distributions -- --
- -------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.06 $ 7.14
===========================================================================================
Ratios and Supplemental Data
- -------------------------------------------------------------------------------------------
Total Return +26.9% -28.6%
Net Assets, End of Period (In Millions) $ 1 $ 0/(e)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 8.4%* 14.1%*
Ratio of Expenses to Average Net Assets 2.4%* 2.5%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (2.4%)* (2.4%)*
Portfolio Turnover Rate/(f)/ 67.1% 98.1%
STRONG ADVISOR U.S. SMALL/MID CAP GROWTH FUND -- CLASS B
- --------------------------------------------------------------------------------
Period Ended
------------------------------------
June 30, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002/(c)/
- -------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 7.14 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.08) (0.14)/(d)/
Net Realized and Unrealized Gains (Losses)
on Investments 2.00 (2.72)
- -------------------------------------------------------------------------------------------
Total from Investment Operations 1.92 (2.86)
Less Distributions:
From Net Investment Income -- --
- -------------------------------------------------------------------------------------------
Total Distributions -- --
- -------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.06 $ 7.14
===========================================================================================
Ratios and Supplemental Data
- -------------------------------------------------------------------------------------------
Total Return +26.9% -28.6%
Net Assets, End of Period (In Millions) $ 1 $ 0/(e)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 9.2%* 14.9%*
Ratio of Expenses to Average Net Assets 2.5%* 2.5%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (2.4%)* (2.4%)*
Portfolio Turnover Rate/(f)/ 67.1% 98.1%
* 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, 2003 (unaudited).
(c) For the period from April 1, 2002 (public launch date) to December 31, 2002
(Note 1).
(d) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the year.
(e) Amount is less than $500,000.
(f) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
See Notes to Financial Statements.
101
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR U.S. SMALL/MID CAP GROWTH FUND -- CLASS C
- --------------------------------------------------------------------------------
Period Ended
------------------------------------
June 30, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002/(c)/
- -------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 7.14 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.06) (0.13)/(d)/
Net Realized and Unrealized Gains (Losses)
on Investments 1.99 (2.73)
- -------------------------------------------------------------------------------------------
Total from Investment Operations 1.93 (2.86)
Less Distributions:
From Net Investment Income -- --
- -------------------------------------------------------------------------------------------
Total Distributions -- --
- -------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.07 $ 7.14
===========================================================================================
Ratios and Supplemental Data
- -------------------------------------------------------------------------------------------
Total Return +27.0% -28.6%
Net Assets, End of Period (In Millions) $ 1 $ 0/(e)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 9.6%* 15.3%*
Ratio of Expenses to Average Net Assets 2.5%* 2.5%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (2.4%)* (2.4%)*
Portfolio Turnover Rate/(f)/ 67.1% 98.1%
STRONG ADVISOR UTILITIES AND ENERGY FUND -- CLASS A
- --------------------------------------------------------------------------------
Period Ended
------------------------------------
June 30, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002/(g)/
- -------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 9.02 $ 10.00
Income From Investment Operations:
Net Investment Income 0.07 0.08/(d)/
Net Realized and Unrealized Gains (Losses)
on Investments 0.81 (1.00)
- -------------------------------------------------------------------------------------------
Total from Investment Operations 0.88 (0.92)
Less Distributions:
From Net Investment Income (0.07) (0.06)
- -------------------------------------------------------------------------------------------
Total Distributions (0.07) (0.06)
- -------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.83 $ 9.02
===========================================================================================
Ratios and Supplemental Data
- -------------------------------------------------------------------------------------------
Total Return +9.8% -9.2%
Net Assets, End of Period (In Millions) $ 15 $ 6
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.8%* 2.2%*
Ratio of Expenses to Average Net Assets 1.8%* 2.2%*
Ratio of Net Investment Income to Average
Net Assets 1.8%* 2.0%*
Portfolio Turnover Rate/(f)/ 67.5% 46.2%
* 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, 2003 (unaudited).
(c) For the period from April 1, 2002 (public launch date) to December 31, 2002
(Note 1).
(d) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the year.
(e) Amount is less than $500,000.
(f) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
(g) For the period From August 1, 2002 (public launch date) to December 31,
2002 (Note 1).
See Notes to Financial Statements.
102
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR UTILITIES AND ENERGY FUND -- CLASS B
- --------------------------------------------------------------------------------
Period Ended
------------------------------------
June 30, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002/(c)/
- -------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 9.04 $ 10.00
Income From Investment Operations:
Net Investment Income 0.06 0.06(d)
Net Realized and Unrealized Gains
on Investments 0.79 (1.00)
- -------------------------------------------------------------------------------------------
Total from Investment Operations 0.85 (0.94)
Less Distributions:
From Net Investment Income (0.04) (0.02)
- -------------------------------------------------------------------------------------------
Total Distributions (0.04) (0.02)
- -------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.85 $ 9.04
===========================================================================================
Ratios and Supplemental Data
- -------------------------------------------------------------------------------------------
Total Return +9.5% -9.4%
Net Assets, End of Period (In Millions) $ 0/(e)/ $ 0/(e)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 4.1%* 5.1%*
Ratio of Expenses to Average Net Assets 2.3%* 2.5%*
Ratio of Net Investment Income to
Average Net Assets 1.4%* 1.6%*
Portfolio Turnover Rate/(f)/ 67.5% 46.2%
STRONG ADVISOR UTILITIES AND ENERGY FUND -- CLASS C
- --------------------------------------------------------------------------------
Period Ended
------------------------------------
June 30, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002/(c)/
- -------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 9.02 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) 0.05 0.05/(d)/
Net Realized and Unrealized Gains (Losses)
on Investments 0.80 (0.99)
- --------------------------------------------------------------------------------------------
Total from Investment Operations 0.85 (0.94)
Less Distributions:
From Net Investment Income (0.04) (0.04)
- --------------------------------------------------------------------------------------------
Total Distributions (0.04) (0.04)
- --------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.83 $ 9.02
============================================================================================
Ratios and Supplemental Data
- --------------------------------------------------------------------------------------------
Total Return +9.5% -9.4%
Net Assets, End of Period (In Millions) $ 0/(e)/ $ 0/(e)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 3.4%* 5.3%*
Ratio of Expenses to Average Net Assets 2.4%* 2.5%*
Ratio of Net Investment Income to Average
Net Assets 1.3%* 1.3%*
Portfolio Turnover Rate/(f)/ 67.5% 46.2%
* 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, 2003 (unaudited).
(c) For the period from August 1, 2002 (public launch date) to December 31,
2002 (Note 1).
(d) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the year.
(e) Amount is less than $500,000.
(f) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
See Notes to Financial Statements.
103
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR LARGE COMPANY CORE FUND -- CLASS A
- --------------------------------------------------------------------------------
Period Ended
-------------------------------------------------------------------
June 30, Dec. 31, Sep. 30, Sep. 30,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002/(c)/ 2002/(d)/ 2001
- ---------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 8.81 $ 8.24 $ 9.65 $ 14.67
Income From Investment Operations:
Net Investment Income 0.00/(f)/ 0.01/(g)/ 0.07 0.12
Net Realized and Unrealized Gains
(Losses) on Investments 0.86 0.57 (1.10) (3.79)
- ---------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.86 0.58 (1.03) (3.67)
Less Distributions:
From Net Investment Income (0.01) (0.01) (0.05) (0.12)
From Net Realized Gains -- -- (0.33) (1.23)
- ---------------------------------------------------------------------------------------------------------------
Total Distributions (0.01) (0.01) (0.38) (1.35)
- ---------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.66 $ 8.81 $ 8.24 $ 9.65
===============================================================================================================
Ratios and Supplemental Data
- ---------------------------------------------------------------------------------------------------------------
Total Return/(f)/ +9.8% +7.0% -11.5% -26.4%
Net Assets, End of Period (In Millions) $ 38 $ 9 $ 6 $ 4
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.9%* 3.1%* 3.7% 4.7%
Ratio of Expenses to Average Net Assets 1.5%* 1.5%* 1.5% 1.5%
Ratio of Net Investment Income to
Average Net Assets 0.3%* 0.1%* 0.8% 1.0%
Portfolio Turnover Rate/(h)/ 77.9% 36.4% 190.4% 221.6%
Period Ended
--------------------------------------------------
Sep. 30, Sep. 30, Sep. 30,
Selected Per-Share Data/(a)/ 2000 1999 1998/(e)/
- ----------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 11.72 $ 9.71 $ 10.00
Income From Investment Operations:
Net Investment Income 0.14 0.09 0.14
Net Realized and Unrealized Gains
(Losses) on Investments 3.26 2.03 (0.29)
- ----------------------------------------------------------------------------------------------
Total from Investment Operations 3.40 2.12 (0.15)
Less Distributions:
From Net Investment Income (0.14) (0.11) (0.14)
From Net Realized Gains (0.31) -- --
- ----------------------------------------------------------------------------------------------
Total Distributions (0.45) (0.11) (0.14)
- ----------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 14.67 $ 11.72 $ 9.71
==============================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------
Total Return/(f)/ +29.5% +21.9% -1.6%
Net Assets, End of Period (In Millions) $ 5 $ 3 $ 2
Ratio of Expenses to Average Net Assets
before Expense Offsets 3.8% 4.6% 8.5%*
Ratio of Expenses to Average Net Assets 1.5% 1.5% 1.5%*
Ratio of Net Investment Income to
Average Net Assets 1.1% 0.8% 1.8%*
Portfolio Turnover Rate/(h)/ 142.7% 113.4% 98.1%
STRONG ADVISOR LARGE COMPANY CORE FUND -- CLASS B
- --------------------------------------------------------------------------------
Period Ended
------------------------------------
June 30, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002/(i)/
- -------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 8.79 $ 8.21
Income From Investment Operations:
Net Investment Income (0.02) (0.02)/(g)/
Net Realized and Unrealized Gains
on Investments 0.83 0.60
- -------------------------------------------------------------------------------------------
Total from Investment Operations 0.81 0.58
Less Distributions:
From Net Investment Income -- --
- -------------------------------------------------------------------------------------------
Total Distributions -- --
- -------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.60 $ 8.79
===========================================================================================
Ratios and Supplemental Data
- -------------------------------------------------------------------------------------------
Total Return +9.2% +7.1%
Net Assets, End of Period (In Millions) $ 4 $ 0/(j)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 2.6%* 4.2%*
Ratio of Expenses to Average Net Assets 2.4%* 2.5%*
Ratio of Net Investment Income to Average
Net Assets (0.7%)* (0.2%)*
Portfolio Turnover Rate/(h)/ 77.9% 36.4%
* 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, 2003 (unaudited).
(c) In 2002, the Fund changed its fiscal year-end from September to December.
(d) Effective September 5, 2002 Strong Capital Management, Inc. assumed the
investment advisory responsibilities from Rockhaven Asset Management, LLC.
(e) For the period from November 4, 1997 (public launch date) to September 30,
1998.
(f) Amount calculated is less than $0.005.
(g) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the year.
(h) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
(i) For the period from October 1, 2002 (public launch date) to December 31,
2002.
(j) Amount is less than $500,000.
See Notes to Financial Statements.
104
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ADVISOR LARGE COMPANY CORE FUND -- CLASS C
- --------------------------------------------------------------------------------
Period Ended
------------------------------
June 30, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002/(c)/
- -------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 8.79 $ 8.21
Income From Investment Operations:
Net Investment Income (Loss) (0.01) (0.02)/(d)/
Net Realized and Unrealized Gains (Losses)
- -------------------------------------------------------------------------------------------------
on Investments 0.82 0.60
Total from Investment Operations 0.81 0.58
Less Distributions:
From Net Investment Income -- (0.00)/(e)/
- -------------------------------------------------------------------------------------------------
Total Distributions -- (0.00)/(e)/
- -------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.60 $ 8.79
=================================================================================================
Ratios and Supplemental Data
- -------------------------------------------------------------------------------------------------
Total Return +9.2% +7.1%
Net Assets, End of Period (In Millions) $ 4 $ 0/(f)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 2.6%* 4.2%*
Ratio of Expenses to Average Net Assets 2.5%* 2.5%*
Ratio of Net Investment Income to Average
Net Assets (0.8%)* (0.2%)*
Portfolio Turnover Rate/(g)/ 77.9% 36.4%
STRONG ADVISOR LARGE COMPANY CORE FUND -- CLASS K
- --------------------------------------------------------------------------------
Period Ended
------------------------------
June 30, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002/(c)/
- -------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 8.80 $ 8.21
Income From Investment Operations:
Net Investment Income 0.04 0.02/(d)/
Net Realized and Unrealized Losses on Investments 0.86 0.59
- -------------------------------------------------------------------------------------------------
Total from Investment Operations 0.90 0.61
Less Distributions:
From Net Investment Income (0.03) (0.02)
- -------------------------------------------------------------------------------------------------
Total Distributions (0.03) (0.02)
- -------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.67 $ 8.80
=================================================================================================
Ratios and Supplemental Data
- -------------------------------------------------------------------------------------------------
Total Return +10.2% +7.4%
Net Assets, End of Period (In Millions) $ 18 $ 0/(f)/
Ratio of Expenses to Average Net Assets before Expense Offsets 1.5%* 2.9%*
Ratio of Expenses to Average Net Assets 1.0%* 1.0%*
Ratio of Net Investment Income to Average Net Assets 0.4%* 1.1%*
Portfolio Turnover Rate/(g)/ 77.9% 36.4%
* 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, 2003 (unaudited).
(c) For the period from October 1, 2002 (public launch date) to December 31,
2002.
(d) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the year.
(e) Amount calculated is less than $0.005.
(f) Amount is less than $500,000.
(g) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
See Notes to Financial Statements.
105
DIRECTORS AND OFFICERS
- --------------------------------------------------------------------------------
Richard S. Strong (indicated below by an asterisk*) is deemed an "interested
person" of the Fund as defined in the Investment Company Act of 1940 because of
his controlling ownership in the Advisor's parent company, Strong Financial
Corporation. Each officer and director holds the same position with the 27
registered open-end management investment companies consisting of 71 mutual
funds ("Strong Funds").
* Richard S. Strong (DOB 5-12-42), Director of the Strong Funds since
September 1981 and Chairman of the Board of the Strong Funds since October
1991.
Mr. Strong has been a Director of the Advisor since September 1981;
Chairman of the Advisor since October 1991; Chief Investment Officer of the
Advisor since January 1996; Security Analyst and Portfolio Manager of the
Advisor since 1985; Chief Executive Officer of the Advisor from 1974 to 1985;
Chairman of Strong Financial Corporation (holding company) since May 2001;
Director and Chairman of Strong Service Corporation (an investment advisor)
since 1995; and Director and Chairman of Strong Investor Services, Inc. (a
transfer agent and administrator), since July 2001. Mr. Strong founded the
Advisor in 1974 and has been in the investment management business since 1967.
Willie D. Davis (DOB 7-24-34), Director of the Strong Funds since July 1994.
Mr. Davis has been President and Chief Executive Officer of All Pro
Broadcasting, Inc., since 1977; Director of Wisconsin Energy Corporation
(formerly WICOR, Inc.) (a utility company), since 1990, Metro Goldwyn Mayer,
Inc. (an entertainment company), since 1998, Bassett Furniture Industries, Inc.,
since 1997, Checker's Drive-In Restaurants, Inc. (formerly Rally's Hamburgers,
Inc.), since 1994, Johnson Controls, Inc. (an industrial company), since 1992,
MGM Mirage (formerly MGM Grand, Inc.) (an entertainment/hotel company) since
1990, Dow Chemical Company since 1988, Sara Lee Corporation (a food/consumer
products company) since 1983, Alliance Bank since 1980, Manpower, Inc. (a
worldwide provider of staffing services), since 2001, and Kmart Corporation (a
discount consumer products company) from 1985 to 2003; and Trustee of the
University of Chicago since 1980 and Marquette University since 1988.
Gordon B. Greer (DOB 2-17-32), Director of the Strong Funds since March 2002.
Mr. Greer was Of Counsel for Bingham McCutchen LLP (a law firm previously
known as Bingham Dana LLP) from 1997 to February 2002 and Partner of Bingham
McCutchen LLP from 1967 to 1997. On behalf of Bingham McCutchen LLP, Mr. Greer
provided representation to the disinterested directors of the Strong Funds from
1991 to February 2002. Bingham McCutchen LLP has provided representation to the
Independent Directors of the Strong Funds since 1991.
Stanley Kritzik (DOB 1-9-30), Director of the Strong Funds since January 1995
and Chairman of the Audit Committee of the Strong Funds since July 2000.
Mr. Kritzik has been Partner of Metropolitan Associates (a real estate firm)
since 1962; Director of Wisconsin Health Information Network since November
1997, Health Network Ventures, Inc., from 1992 to April 2000, Aurora Health Care
from September 1987 to September 2002; and Member of the Board of Governors of
Snowmass Village Resort Association from October 1999 until October 2002.
Neal Malicky (DOB 9-14-34), Director of the Strong Funds since December 1999.
Mr. Malicky has been President Emeritus of Baldwin-Wallace College since
July 2000; Chancellor of Baldwin-Wallace College from July 1999 to June 2000;
President of Baldwin-Wallace College from July 1981 to June 1999; Director of
Aspire Learning Corporation since June 2000; Trustee of Southwest Community
Health Systems, Cleveland Scholarship Program, and The National Conference for
Community and Justice until 2001; President of the National Association of
Schools and Colleges of the United Methodist Church, Chairperson of the
Association of Independent Colleges and Universities of Ohio, and Secretary of
the National Association of Independent Colleges and Universities until 2001.
William F. Vogt (DOB 7-19-47), Director and Chairman of the Independent
Directors Committee of the Strong Funds since January 1995.
Mr. Vogt has been Senior Vice President of IDX Systems Corporation (a
management consulting firm) since June 2001; President of Vogt Management
Consulting, Inc., from July 1990 to June 2001; and former Fellow of the American
College of Medical Practice Executives.
106
DIRECTORS AND OFFICERS (continued)
- --------------------------------------------------------------------------------
Ane K. Ohm (DOB 10-16-69), Anti-Money Laundering Compliance Officer since
November 2002.
Ms. Ohm has been Director of Mutual Fund Administration of Strong Investor
Services, Inc., since April 2001; Marketing Services Manager of Strong
Investments, Inc., from November 1998 to April 2001; and Retail Services
Financial Manager of Strong Investments, Inc., from January 1997 to November
1998.
Christopher O. Petersen (DOB 1-18-70), Vice President and Assistant Secretary of
the Strong Funds since May 2003.
Mr. Petersen has been Managing Counsel of Strong Financial Corporation
since March 2003; Corporate Counsel at U.S. Bancorp Asset Management, Inc., from
May 2001 to March 2003; Corporate Counsel at First American Asset Management, a
division of U.S. Bank National Association ("FAAM"), from September 1999 to May
2001; Compliance Officer at FAAM from January 1999 to September 1999; and
Associate at Mauzy Law Firm from September 1997 to December 1998.
Richard W. Smirl (DOB 4-18-67), Vice President of the Strong Funds since
February 2002 and Secretary of the Strong Funds since November 2001.
Mr. Smirl has been Senior Counsel of Strong Financial Corporation since
December 2001; Assistant Executive Vice President since December 2001; Secretary
of the Advisor since November 2002; Assistant Secretary of the Advisor from
December 2001 to November 2002; Senior Counsel of the Advisor from July 2000 to
December 2001; General Counsel of Strong Investments, Inc. ("Distributor"),
since November 2001; Vice President, Secretary, and Chief Compliance Officer of
the Distributor since July 2000; Lead Counsel of the Distributor from July 2000
to November 2001; Partner at Keesal, Young & Logan LLP (a law firm) from
September 1999 to July 2000; and Associate at Keesal, Young & Logan LLP from
September 1992 to September 1999.
Gilbert L. Southwell III (DOB 4-13-54), Assistant Secretary of the Strong Funds
since July 2001.
Mr. Southwell has been Associate Counsel of Strong Financial Corporation
since December 2001; Assistant Secretary of the Advisor since December 2002;
Associate Counsel of the Advisor from April 2001 to December 2001; Partner at
Michael, Best & Friedrich, LLP (a law firm) from October 1999 to March 2001; and
Assistant General Counsel of U.S. Bank, National Association (formerly Firstar
Bank, N.A.) and/or certain of its subsidiaries from November 1984 to September
1999.
John W. Widmer (DOB 1-19-65), Treasurer of the Strong Funds since April 1999.
Mr. Widmer has been Treasurer of the Advisor since April 1999; Assistant
Secretary and Assistant Treasurer of Strong Financial Corporation since December
2001; Treasurer of Strong Service Corporation since April 1999; Treasurer and
Assistant Secretary of Strong Investor Services, Inc., since July 2001; and
Manager of the Financial Management and Sales Reporting Systems department of
the Advisor from May 1997 to April 1999.
Thomas M. Zoeller (DOB 2-21-64), Vice President of the Strong Funds since
October 1999.
Mr. Zoeller has been Executive Vice President of the Advisor since April
2001; Chief Financial Officer of the Advisor since February 1998; Secretary of
the Advisor from December 2001 to November 2002; Member of the Office of the
Chief Executive of Strong Financial Corporation since May 2001; Chief Financial
Officer and Treasurer of Strong Investments, Inc., since October 1993; Executive
Vice President and Secretary of Strong Investor Services, Inc., since July 2001;
Executive Vice President, Chief Financial Officer, and Secretary of Strong
Service Corporation since December 2001; Treasurer of Strong Service Corporation
from September 1996 to April 1999; Vice President of Strong Service Corporation
from April 1999 to December 2001; Member of the Office of the Chief Executive of
the Advisor from November 1998 until May 2001; Senior Vice President of the
Advisor from February 1998 to April 2001; and Treasurer and Controller of the
Advisor from October 1991 to February 1998.
Except for Messrs. Davis, Kritzik, Malicky, and Vogt, the address of all of
the Directors and Officers is P.O. Box 2936, Milwaukee, WI 53201. Mr. Davis's
address is 161 North La Brea, Inglewood, CA 90301. Mr. Kritzik's address is 1123
North Astor Street, Milwaukee, WI 53202. Mr. Malicky's address is 4608 Turnberry
Drive, Lawrence, KS 66047. Mr. Vogt's address is P.O. Box 7657, Avon, CO 81620.
The statement of additional information contains additional information
about fund directors and officers and is available without charge, upon request,
by calling 1-800-368-3863.
107
NOTES
- --------------------------------------------------------------------------------
108
NOTES
- --------------------------------------------------------------------------------
109
NOTES
- --------------------------------------------------------------------------------
110
Directors
Richard S. Strong
Willie D. Davis
Gordon B. Greer
Stanley Kritzik
Neal Malicky
William F. Vogt
Officers
Richard S. Strong, Chairman of the Board
Thomas M. Zoeller, Vice President
Richard W. Smirl, Vice President and Secretary
Christopher O. Petersen, Vice President and Assistant Secretary
Gilbert L. Southwell III, Assistant Secretary
John W. Widmer, Treasurer
Ane K. Ohm, Anti-Money Laundering Compliance Officer
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
State Street Bank and Trust Company
801 Pennsylvania Avenue, Kansas City, Missouri 64105
Transfer Agent and Dividend-Disbursing Agent
Strong Investor Services, 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
This report does not constitute an offer for the sale of securities. Strong
Funds are offered for sale by prospectus only. Securities are offered through
Strong Investments, Inc. RT35733 08-03
Strong Investments
P.O. Box 2936 | Milwaukee, WI 53201
www.Strong.com
- --------------------------------------------------------------------------------
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.Strong.com
[STRONG LOGO]
SADVEQY/WH2006 C
Item 1. Reports to Stockholders
SEMIANNUAL REPORT | June 30, 2003
The Strong
Growth
Funds
[PHOTO APPEARS HERE]
Strong Blue Chip Fund
Strong Discovery Fund
Strong Endeavor Fund
Strong Large Cap Growth Fund
Strong Large Company Growth Fund
Strong U.S. Emerging Growth Fund
Strong Enterprise Fund
Strong Growth 20 Fund
Strong Growth Fund
[STRONG LOGO]
SEMIANNUAL REPORT | June 30, 2003
The Strong
Growth
Funds
Table of Contents
Investment Reviews
Strong Blue Chip Fund ..................................... 2
Strong Discovery Fund ..................................... 4
Strong Endeavor Fund ...................................... 6
Strong Large Cap Growth Fund .............................. 8
Strong Large Company Growth Fund ..........................10
Strong U.S. Emerging Growth Fund ..........................12
Strong Enterprise Fund ....................................14
Strong Growth 20 Fund .....................................16
Strong Growth Fund ........................................18
Financial Information
Schedules of Investments in Securities
Strong Blue Chip Fund ................................20
Strong Discovery Fund ................................20
Strong Endeavor Fund .................................23
Strong Large Cap Growth Fund .........................24
Strong Large Company Growth Fund .....................27
Strong U.S. Emerging Growth Fund .....................28
Strong Enterprise Fund ...............................30
Strong Growth 20 Fund ................................32
Strong Growth Fund ...................................33
Statements of Assets and Liabilities ......................36
Statements of Operations ..................................41
Statements of Changes in Net Assets .......................44
Notes to Financial Statements .............................47
Financial Highlights ...........................................61
Directors and Officers .........................................69
A Few Words From Dick Strong
- --------------------------------------------------------------------------------
[PHOTO APPEARS HERE]
Market Update--January 1 to June 30, 2003
In the early 1930s, politicians and policymakers in the United States and
elsewhere made a series of strategic errors that resulted in what historians
termed "an economic contraction." The rest of us call that period of horrible
human suffering and deprivation The Great Depression. When it finally ended,
those same politicians and economists vowed never to make the same mistakes
again.
In this country, seven decades later, the lessons of The Great Depression still
echo in our hearts and minds. Today, responding to weak economic growth and
fears of a possible severe slowdown, our government's economic policymakers have
employed almost every imaginable tool to spur economic growth. As the world's
biggest economy and the economic engine of the world, the U.S. has led the
way--but not alone. Other countries and regional economic authorities are
likewise moving to stimulate their economies.
The store of economic stimulants being brought to bear is unrivaled since World
War II. In the U.S. alone, we have witnessed massive government spending, with a
projected deficit larger than any in history. Monetary policy also has
contributed, pushing short-term interest rates to the lowest levels in more than
50 years. A weaker dollar aims to support manufacturing and export growth.
Changes in the tax laws on dividends and the evolving shift in corporate
compensation away from stock options to stock grants should meaningfully improve
corporate capital allocation.
History has demonstrated that it is dangerous to bet against the world's
governing bodies when they resolve to propel economic growth. Signs suggest that
we are in the beginning stages of a solid economic rebound. Early in such a
recovery phase, stocks and commodity prices usually rise, anticipating further
recovery. As additional signs of improvement emerge, consumer and business
confidence historically grows, and soon spending typically accelerates.
In the early stages of recovery, employment generally lags (usually 12-18
months) until employers gain confidence that such momentum will be sustained.
Because politicians are hypersensitive to employment numbers, they constantly
beat the drums of despair, when in reality hiring may be about to improve. And
so, it is not unusual to see more aggressive measures taken beyond the point
where a legitimate recovery is in place and employment is actually ready to
expand.
The strength of our economic system is that, beneath the bland economic
statistics reported daily, the system is always driving toward greater
efficiency and productivity. Those gains, in turn, inspire growth and create
wealth. The pressure and incentive for positive change is heightened during
downturns. Thus, our economy is often stronger
in the ensuing recovery. It is the combination of our political freedom and our
flexible economic system that has created the world's richest and most
productive country.
The change that our system creates and accommodates is astonishing. At the
beginning of the 20th century, 60 million Americans were employed in
agriculture. Today, that number has shrunk to an almost unbelievable 2.5 million
people. In the 1950s, 35% of Americans were employed in manufacturing; that
number has now fallen to 15%. Manufacturing supplanted farming as the country's
dominant employer and wealth generator. Now, the service and technology sectors
are taking their turn as the nation's leading economic sectors.
The changes under way in executive compensation and taxation of shareholder
dividends are important for all investors to understand. The use of stock grants
instead of stock options--that is, real money in place of pipe dreams and
gimmicks--should shore up the financial foundation of American corporations.
Likewise, the dividend tax law change should have far-reaching consequences. The
time-honored practice of companies returning part of their profits to
shareholders is a sound one. Issuing dividends will make corporate executives
more sensitive to downside risk as well as upside opportunity. The impact of
lower taxes on those dividends could be massive.
The United States and the rest of the world are in a consolidation phase
following the 1990s, a period that was--in every economic sense--abnormal. The
boom and the resultant bust scared and disoriented all of us. But we believe
that chapter is closing, and we are wiser for the lessons it taught us.
At the end of the day, there is a good chance that governmental growth
initiatives throughout the world will work. If they do, the world's economy will
recover, and we could reach a healthy 4%-plus real growth rate in 2004. The
current program of policy and tax changes should lay the foundation for job
growth and a sustained period of better economic times.
Investors should get on the right side of these trends by continuing to invest
using the appropriate combination of stocks and bonds, always consistent with
their long-term financial goals.
/s/ Dick
Strong Blue Chip Fund
================================================================================
Your Fund's Approach
The Strong Blue Chip Fund seeks total return by investing for capital growth
and income. The Fund invests, under normal conditions, at least 80% of its net
assets in blue chip companies. The Fund considers blue chip companies to be
companies whose stock is included in the Russell Top 200 Growth Index or
companies with a similar capitalization at the time of the Fund's investment.
The Fund focuses on companies its manager believes offers the potential for
capital growth. The Fund may utilize an active trading approach. The manager may
sell a holding when it no longer offers attractive growth prospects or to take
advantage of a better investment opportunity.
Growth of an Assumed $10,000 Investment+
From 6-30-97 to 6-30-03
[CHART APPEARS HERE]
The Strong Lipper Large-Cap
Blue Chip S&P 500 Growth Funds
Fund Index* Index*
Jun 97 $ 10,000 $ 10,000 $ 10,000
Dec 97 $ 10,872 $ 11,057 $ 10,932
Jun 98 $ 13,233 $ 13,015 $ 13,171
Dec 98 $ 15,647 $ 14,217 $ 14,920
Jun 99 $ 17,634 $ 15,977 $ 16,708
Dec 99 $ 21,730 $ 17,208 $ 20,115
Jun 00 $ 22,800 $ 17,136 $ 20,161
Dec 00 $ 17,695 $ 15,643 $ 16,156
Jun 01 $ 14,885 $ 14,596 $ 13,440
Dec 01 $ 13,207 $ 13,785 $ 12,300
Jun 02 $ 11,572 $ 11,972 $ 10,091
Dec 02 $ 9,211 $ 10,740 $ 8,842
Jun 03 $ 10,119 $ 12,002 $ 9,882
+ 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
S&P 500 Index and the Lipper Large-Cap Growth 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. The graph and the Average Annual Total Returns table do not
reflect the deduction of taxes, if any, that a shareholder would pay on
Fund distributions or the redemption of Fund shares.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
For the six months ended June 30, 2003, the Fund posted strong returns on an
absolute basis while moderately underperforming its broad-based benchmark, the
S&P 500 Index. The Fund generated a year-to-date return of 9.86% compared to the
S&P 500 Index, which generated a year-to-date return of 11.75% as of June 30,
2003. The Fund posted mild losses in the first quarter, when the markets and the
economy were stalled by concerns about the war with Iraq. In the second quarter,
the Fund posted strong returns as the war's quick resolution boosted investor
and consumer confidence.
Two very different quarters
The economy and markets started January on an optimistic note, but both quickly
fell as fears of the impact of war with Iraq consumed the minds of investors,
businesses, and consumers. In the uncertainty, businesses delayed spending and
made additional cutbacks in payroll, and consumer confidence weakened. Equities
reached their low point in mid-March, and returns in most sectors were negative.
In the second quarter, however, the progress of the coalition forces in Iraq
proved to be better than many expected, driving strong upward momentum in the
markets. The recovery was broad-based, with virtually every sector posting
positive returns. Newly restored confidence in America--not just in its military
strength but also in its economic power--drove this sea change in investor
sentiment. Continued monetary stimulus from the Federal Reserve and fiscal
stimulus in the
2
form of tax cuts from the President and Congress also helped to increase
optimism regarding the prospects for economic recovery.
As investors gained more confidence in the economy, they became willing to put
more money back into the equity markets--even though current economic news had
been mixed. This is consistent with a role the stock market has historically
played--as a leading indicator of economic growth.
Large-cap stocks performed more strongly in the early part of this rebound, from
mid-March through mid-April. At that point, investor sentiment and tolerance for
risk accelerated, which allowed small- and mid-cap stocks to outperform
large-cap stocks as reflected by the Russell 1000 Growth Index.
Expansion of our investment universe
In keeping with the Fund's focus on large-cap stocks, it performed most strongly
when large caps outperformed, and it lagged slightly as smaller stocks came to
the fore.
This spring we did expand the universe of stocks eligible for inclusion in the
Fund. While our focus remains firmly on large-cap, blue chip stocks, we now have
more companies from which to choose. We believe this change gives us the ability
to be both more flexible and more selective in constructing the portfolio. This
change contributed to our improved performance in May and June, and we believe
it will continue to do so over time.
The expanded universe of choices of stocks has not resulted in major changes in
the types of companies in which we invest. The overall sector weightings, for
example, remain quite similar, with healthcare and technology among the larger
sectors in our investment universe. Those two sectors, along with consumer
discretionary stocks, were the Fund's three heaviest-weighted sectors over the
six months.
Recovery appears likely to continue
Consumer-related sectors have led the recovery to date, with housing activity
and car sales both playing key roles in leading the economy out of recession.
Despite weak employment data, consumer spending fundamentals remain fairly
healthy and appear set to improve. Spending on housing and cars may slow, but
retail and services spending may very well increase to fill the void.
At this point, the manufacturing sector and corporate capital spending have
corrected to the point that they now seem set to provide a good base for
noninflationary growth for some time to come. While businesses may wait a little
longer before gaining full confidence and stepping up spending, we believe that
once the turn comes, it could progress more quickly than expected. The
cost-cutting measures that have been taking place over the past several years
could set the stage for profits to expand faster than revenues.
Despite recent gains, we believe price/earnings ratios for many stocks are still
very reasonable, particularly when adjusted to account for low interest rates.
We believe significant opportunities for further appreciation remain available
in a variety of sectors.
We appreciate your continued investment in the Strong Blue Chip Fund.
Karen E. McGrath
Portfolio Manager
Average Annual Total Returns
As of 6-30-03
Investor Class
- ----------------------------------------------
1-year -12.56%
3-year -23.72%
5-year -5.22%
Since Fund Inception 0.20%
(6-30-97)
Equity funds are volatile investments and should only be considered for
long-term goals.
From time to time, the Fund's advisor has waived its management fee and/or
absorbed Fund expenses, which has resulted in higher returns.
* The S&P 500 Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market value weighted index
(stock price times number of shares outstanding), with each stock's weight
in the Index proportionate to its market value. The Lipper Large-Cap Growth
Funds Index is the average of the 30 largest funds in the Lipper Large-Cap
Growth Funds Category. Source of the S&P index data is Standard & Poor's
Micropal. Source of the Lipper index data is Lipper Inc.
3
Strong Discovery Fund
================================================================================
Your Fund's Approach
The Strong Discovery Fund seeks capital growth. The Fund invests, under normal
conditions, in securities that its manager believes offer attractive
opportunities for growth. The Fund usually invests in a diversified portfolio of
common stocks from small- and medium-capitalization companies. These are chosen
through a combination of in-depth fundamental analysis of a company's financial
reports and direct, on-site research during company visits. Although the Fund
can invest in stocks of any economic sector, at times it may emphasize the
financial sector or other sectors. In addition, the Fund may utilize an active
trading approach. The manager may sell a holding if its growth potential or
fundamental qualities change.
Growth of an Assumed $10,000 Investment+
From 12-31-87 to 6-30-03
[CHART APPEARS HERE]
The Strong Lipper Mid-Cap
Discovery Russell 2000(R) Core Funds
Fund Index* Average*
Dec 87 $ 10,000 $ 10,000 $ 10,000
Dec 88 $ 12,445 $ 12,502 $ 12,025
Dec 89 $ 15,428 $ 14,535 $ 15,374
Dec 90 $ 15,005 $ 11,704 $ 14,054
Dec 91 $ 25,151 $ 17,093 $ 20,062
Dec 92 $ 25,639 $ 20,240 $ 22,792
Dec 93 $ 31,333 $ 24,061 $ 26,194
Dec 94 $ 29,553 $ 23,622 $ 25,612
Dec 95 $ 39,845 $ 30,343 $ 32,938
Dec 96 $ 40,439 $ 35,347 $ 39,614
Dec 97 $ 44,825 $ 43,252 $ 50,410
Dec 98 $ 47,981 $ 42,151 $ 55,178
Dec 99 $ 50,516 $ 51,111 $ 70,250
Dec 00 $ 52,520 $ 49,567 $ 78,216
Dec 01 $ 54,711 $ 50,799 $ 75,576
Dec 02 $ 48,078 $ 40,394 $ 61,729
Jun 03 $ 54,146 $ 47,616 $ 70,153
+ 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
Russell 2000(R) Index and the Lipper Mid-Cap Core Funds 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. The graph and the Average Annual Total Returns table do not
reflect the deduction of taxes, if any, that a shareholder would pay on
Fund distributions or the redemption of Fund shares.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
During the first six months of 2003, the Discovery Fund delivered its strongest
semiannual performance in several years on an absolute return basis. While the
Fund produced strong returns, it underperformed its broad-based benchmark, the
Russell 2000 Index. The Fund generated a year-to-date return of 12.62% compared
to the Russell 2000 Index, which generated a year-to-date return of 17.88% as of
June 30, 2003.
The Fund participated in the post-Iraq war stock market rally, though its bias
against lower-quality telecommunications and technology stocks contributed to
its underperformance. These companies benefited from a speculative run-up driven
by investors' increased appetite for risk in anticipation of an economic
recovery.
War influenced markets and sentiment
One of the most significant events during the first half of 2003 was the onset
and conclusion of major combat in Iraq. In the early part of the year, there was
much uncertainty as to whether the war would take place at all and, if so, how
long it might last. In such an environment, business leaders were unwilling to
make significant capital expenditures or to hire new employees. As a result, the
entire economy was in a holding pattern until the main thrust of the conflict
ended in mid-April.
When the major combat concluded, consumer sentiment soared upward, and the
market experienced an increase in speculative activity, with market participants
demonstrating a preference for riskier companies in the biotech, Internet,
communication, technology,
4
and cyclical sectors. As May progressed, however, actual evidence of an
improving economy failed to materialize. In response, interest rates began to
fall, which further fueled investor speculation, increasing demand for interest
rate-sensitive and highly leveraged companies. During this period the Fund
experienced most of its underperformance, as many of its investments were in
higher-quality companies positioned to benefit from an eventual turn in the
economy.
Other contributing factors to the strong equity market in May and June were the
announcements from Washington of a dividend tax cut, a corporate spending
stimulus package, and a Medicare drug benefit program.
Sectors driving performance
Early in the period, we had positioned the Fund with a significant
underweighting in technology stocks, as compared to the Russell 2500(TM) Growth
Index, in anticipation of a reversal of the speculative run-up many of these
stocks experienced in the fourth quarter of 2002. That reversal materialized in
late January and continued through March, during which time we accumulated
shares of what we considered to be among the highest-quality technology
companies--names we believed could rebound with the economy after the conclusion
of the conflict in Iraq.
We also reduced our energy exposure in early March, anticipating that energy
prices would fall from their record highs and, consequently, the stocks of oil
producers and oil service companies would underperform, relative to the Russell
2500 Growth Index. The eventual rebound of smaller, speculative technology
companies and the continuation of higher energy prices after the war made these
strategies less than optimal.
Also, compared to the Russell 2500 Growth Index, the Fund's exposure to
consumer-oriented companies made a significant, favorable contribution to
performance.
Our outlook for the months ahead
With the changes taking place across many industries in the U.S. economy, we
believe this may be one of the most exciting times for the stock market in
several years. Much of the recent optimism for an economic recovery rests on the
assumption that fiscal and monetary policies will be successful in stimulating
capital spending and increasing earnings growth.
From our perspective, the backdrop for economic growth and the resumption of
business spending will likely remain challenging, due to low interest rates and
an ample supply of capital chasing a limited number of investment opportunities.
However, it appears there are pockets of significant earnings growth
materializing on many different fronts. These are the result of technological
innovations, rationalization of cost structures, or industry consolidation.
In our view, this environment will require growth investors to identify
beneath-the-surface growth opportunities in industries such as technology,
biotechnology, energy, industrial cyclicals, and niche-oriented consumer goods.
We remain dedicated to identifying these investment opportunities as they emerge
in a select number of mid-cap and smaller-cap companies.
Thank you for your investment and continued confidence in the Strong Discovery
Fund.
Thomas J. Pence
Portfolio Manager
A note to shareholders
This period was marked by the untimely death of our dear friend and colleague,
Nicholas Truitt. Nick's accomplishments as Co-Manager of the Discovery Fund over
the past two volatile years were exemplary. His kind heart, warm laughter, and
exceptional intellect will be forever missed by me and my entire team.
Average Annual Total Returns
As of 6-30-03
- ----------------------------------------------
1-year 3.77%
3-year -1.29%
5-year 2.31%
10-year 7.34%
Since Fund Inception 11.51%
(12-31-87)
Equity funds are volatile investments and should only be considered for
long-term goals.
Because smaller companies often have narrower markets and limited financial
resources, investments in theses stocks present more risk than investments
in those of larger, more established companies.
* The Russell 2000(R) Index measures the performance of the 2,000 smallest
companies in the Russell 3000(R) Index, which represents approximately 8%
of the total market capitalization of the Russell 3000(R) Index. The Lipper
Mid-Cap Core Funds Average is the average of all funds in the Lipper
Mid-Cap Core Funds Category. Source of the Russell index data is Standard &
Poor's Micropal. Source of the Lipper index data is Lipper Inc.
5
Strong Endeavor Fund
================================================================================
Your Fund's Approach
The Strong Endeavor Fund seeks capital growth. The Fund focuses, under normal
conditions, on stocks (including common stocks and securities convertible into
common stocks) of companies that its managers believe have above-average
earnings growth prospects. The Fund invests primarily in large-capitalization
companies but also invests in small- and medium-capitalization companies. The
Fund's managers select companies that have attractive growth prospects (e.g.,
the potential for accelerated earnings growth because of management changes, new
products, or changes in the economy), accelerating sales and earnings, and
positive fundamentals (e.g., showing a growth trend or well-positioned in a
growth industry). The Fund may also invest up to 25% of its net assets in
foreign securities. In addition, the Fund may utilize an active trading
approach. The managers may sell a stock when the company's growth prospects
become less attractive or to take advantage of a better investment opportunity.
Growth of an Assumed $10,000 Investment+
From 4-6-01 to 6-30-03
[CHART APPEARS HERE]
The Strong Lipper Large-Cap
Endeavor S&P 500 Growth Funds
Fund Index* Index*
Mar 01 $ 10,000 $ 10,000 $ 10,000
Jun 01 $ 10,820 $ 10,880 $ 10,500
Sep 01 $ 9,050 $ 9,284 $ 8,414
Dec 01 $ 9,940 $ 10,276 $ 9,610
Mar 02 $ 9,450 $ 10,304 $ 9,366
Jun 02 $ 8,050 $ 8,924 $ 7,884
Sep 02 $ 6,870 $ 7,383 $ 6,621
Dec 02 $ 7,030 $ 8,005 $ 6,908
Mar 03 $ 6,980 $ 7,753 $ 6,802
Jun 03 $ 8,000 $ 8,946 $ 7,721
+ This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at its inception, with a similar investment in
the S&P 500 Index and the Lipper Large-Cap Growth 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 a loss when
you sell shares. The graph and the Average Annual Total Returns table do
not reflect the deduction of taxes, if any, that a shareholder would pay on
Fund distributions or the redemption of Fund shares.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
In the first half of 2003, the Endeavor Fund advanced significantly and
outperformed its broad-based index, the S&P 500 Index, as a result of individual
security selection. Positions in beaten-down stocks rallied nicely as the
period progressed. The Fund generated a year-to-date return of 13.80% compared
to the S&P 500 Index, which generated a year-to-date return of 11.75% as of June
30, 2003.
War played a large role over the period
One of the most significant events during the first half of 2003 was the onset
and conclusion of the major combat in Iraq. In the early part of the year, there
was much uncertainty as to whether the war would take place at all and, if so,
how long it might last. In such an environment, business leaders were unwilling
to make significant capital expenditures or to hire new employees. As a result,
the entire economy was in a holding pattern until the main thrust of the
conflict ended in mid-April.
When the initial combat showed signs of coming to an end, consumer sentiment
soared upward and the market experienced an increase in speculative activity,
with market participants demonstrating a preference for riskier companies in the
biotech, Internet, communication, technology, and cyclical sectors. As May
progressed, however, actual evidence of an improving economy failed to
materialize. In response, interest
6
rates began to fall, which further fueled investor speculation, increasing
demand for interest rate-sensitive and highly leveraged companies. During this
period the Fund experienced most of its underperformance relative to the
broad-based benchmark, as many of its investments were in higher-quality
companies positioned to benefit from an eventual turn in the economy.
Finding select opportunities in many sectors
Our continued focus on extensive bottom-up research allowed us to identify
several attractive investment opportunities for the Fund.
Our in-depth company and industry analysis led us to opportunities in some
larger, leading Internet and media companies that we believe have outstanding
growth prospects, strong business models, and solid near-term fundamentals.
Another research theme that contributed positively to the Fund's performance was
post-secondary education space, where we invested in for-profit education
providers and financers of student loans. Traditional media also provided us
with an attractive investment theme, as highlighted by our positions in large
multimedia stocks. Following the war in Iraq, these companies benefited from an
improvement in advertising rates and consumer sentiment.
We underweighted consumer staples and pharmaceuticals, in comparison to the
Russell 1000(R) Growth Index, based on our belief that these sectors did not
offer growth opportunities commensurate with their stocks' premium valuations.
It seemed to us that over the past few quarters many investors had been hiding
out in these two industries, which were perceived to be relatively safe; this
activity drove their valuations up to what we believed were unsustainable
levels.
Looking ahead to a changing environment
With the many changes taking place across many industries in the U.S. economy,
we believe this may be one of the most exciting times for the stock market in
several years. Much of the recent optimism for an economic recovery rests on the
implicit assumption that fiscal and monetary policies will be successful in
stimulating capital spending and increasing earnings growth.
From our perspective, the backdrop for economic growth and the resumption of
business spending will likely remain challenging, due to low interest rates and
an ample supply of capital chasing a limited number of investment opportunities.
However, it appears there are pockets of significant earnings growth
materializing on many different fronts.
These are the result of technological innovations, rationalization of cost
structures, or industry consolidation.
In our view, this environment will require growth investors to identify
beneath-the-surface growth opportunities in industries such as technology,
biotechnology, energy, industrial cyclicals, and niche-oriented consumer goods.
We remain dedicated to identifying these investment opportunities as they emerge
in a select number of mid-cap and smaller-cap companies.
Thank you for placing your confidence in the Strong Endeavor Fund.
Thomas J. Pence
Portfolio Co-Manager
D. Paul Berg
Portfolio Co-Manager
Average Annual Total Returns
As of 6-30-03
- ----------------------------------------------
1-year -0.62%
Since Fund Inception -9.51%
(4-6-01)
Equity funds are volatile investments and should only be considered for
long-term goals.
From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
* The S&P 500 Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market value weighted index
(stock price times number of shares outstanding), with each stock's weight
in the Index proportionate to its market value. The Lipper Large-Cap Growth
Funds Index is the average of the 30 largest funds in the Lipper Large-Cap
Growth Funds Category. Source of the S&P index data is Standard & Poor's
Micropal. Source of the Lipper index data is Lipper Inc.
7
Strong Large Cap Growth Fund
================================================================================
Your Fund's Approach
The Strong Large Cap Growth Fund seeks capital growth. It invests, under normal
conditions, at least 80% of its assets in stocks of large-capitalization
companies that its manager believes offer the potential for capital growth.
Large-capitalization companies are defined as those companies with a market
capitalization substantially similar to that of companies in the S&P 500 Index*
at the time of investment. The Fund's manager seeks to identify companies that
have superior sales and earnings, enjoy a competitive advantage (e.g., dominant
market share), and have effective management (e.g., high return on invested
capital). Although the Fund can invest in stocks of any economic sector, at
times it may emphasize the consumer cyclicals, healthcare, technology, or other
sectors. The Fund may invest in derivative securities for nonspeculative
purposes (e.g., to manage investment risk, for liquidity, or to enhance the
Fund's return) and may utilize an active trading approach. The manager may
choose to sell a holding when it no longer offers attractive growth prospects or
to take advantage of a better investment opportunity.
Growth of an Assumed $10,000 Investment+
From 12-30-81 to 6-30-03
[CHART APPEARS HERE]
The Strong Lipper Large-Cap
Large Cap S&P 500 Growth Funds
Growth Fund Index* Index*
Dec 81 $ 10,000 $ 10,000 $ 10,000
Dec 82 $ 13,250 $ 12,155 $ 12,891
Dec 83 $ 18,720 $ 14,896 $ 15,808
Dec 84 $ 20,685 $ 15,831 $ 15,135
Dec 85 $ 25,936 $ 20,854 $ 20,107
Dec 86 $ 31,121 $ 24,747 $ 23,476
Dec 87 $ 33,002 $ 26,046 $ 24,258
Dec 88 $ 38,141 $ 30,360 $ 26,887
Dec 89 $ 39,140 $ 39,963 $ 35,572
Dec 90 $ 36,367 $ 38,721 $ 34,925
Dec 91 $ 48,578 $ 50,492 $ 47,967
Dec 92 $ 48,844 $ 54,334 $ 51,270
Dec 93 $ 59,851 $ 59,798 $ 56,735
Dec 94 $ 59,027 $ 60,584 $ 56,268
Dec 95 $ 74,963 $ 83,324 $ 75,916
Dec 96 $ 85,512 $ 102,443 $ 91,524
Dec 97 $ 106,181 $ 136,608 $ 116,777
Dec 98 $ 140,208 $ 175,645 $ 159,368
Dec 99 $ 223,975 $ 212,601 $ 214,856
Dec 00 $ 193,951 $ 193,263 $ 172,576
Dec 01 $ 131,366 $ 170,311 $ 131,385
Dec 02 $ 92,096 $ 132,685 $ 94,449
Jun 03 $ 104,647 $ 148,278 $ 105,556
+ 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
S&P 500 Index and the Lipper Large-Cap Growth 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. The graph and the Average Annual Total Returns table do not
reflect the deduction of taxes, if any, that a shareholder would pay on
Fund distributions or the redemption of Fund shares.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
The Strong Large Cap Growth Fund was up solidly in the first six months of 2003,
outperforming its broad-based benchmark index, the S&P 500 Index. The Fund
generated a year-to-date return of 13.63% compared to the S&P 500 Index, which
generated a year-to-date return of 11.75% as of June 30, 2003. The Fund
outperformed during the year's first quarter, a period when the broader market
declined slightly. In the second quarter, the market staged a strong rally, with
the Fund performing in line with the benchmark.
The market's tone changed dramatically
Stocks sold off early in 2003, as the uncertainty surrounding war with Iraq, a
continued sluggish economy, and weak earnings visibility gave investors little
reason for confidence. At that time, we positioned the Fund fairly defensively,
an approach that helped our relative and absolute performance in the period's
early months.
The market began a powerful rally in March, as it became clear that our
operations in Iraq would be relatively quick and successful. In addition, it
became apparent that Congress was willing to cut taxes significantly in an
effort to stimulate the U.S. economy. In this environment, we shifted our
tactics quickly, moving to a more aggressive posture to benefit from the
positive trend. The trifecta of historically low interest rates, a weakening
dollar that makes U.S.-produced goods more attractive to foreign markets, and
8
additional tax cuts are providing a great deal of stimulus to the U.S. economy.
This rush of liquidity was positive for stocks across the board, but it gave the
biggest boost to the riskiest and highest P/E stocks. These include stocks of
companies in the biotechnology, Internet, telecommunications, and technology
sectors, as well as many companies that had previously been on the brink of
bankruptcy.
Factors in the Fund's performance
The Fund's holdings in growth companies whose success is closely tied to the
improving economy helped investment performance in the second quarter,
particularly in April and May. In particular, the Fund overweighted technology,
media, and biotech companies for much of the period, while underweighting more
defensive sectors such as consumer staples as compared to the broad-based
benchmark.
Our investment decision-making continued to rely heavily on our hands-on,
intensive research process, seeking out those companies that are leaders in
their industries or have the potential to become one. We look for companies with
strong management teams, solid balance sheets, and sensible business models.
Attention to valuations remains an important element of our decision-making
process.
The outlook for growth investing
We continue to believe the environment for improving corporate profitability is
providing investors with significant opportunities. As we have in the past, we
continue to search out and invest in companies with strong competitive
advantages that can generate superior earnings and revenue growth. These stocks
don't lead the market every quarter, but we believe this can be a rewarding
long-term strategy.
We believe the current environment is very similar to that which prevailed in
the early 1960s, when low inflation, low interest rates, and moderate economic
growth combined to help produce a strong cyclical bull market. We will continue
to adhere to our active investment strategy emphasizing compelling investment
themes based on changing demographics, medical advances, and unit growth, which
we believe can lead us to sectors with the potential for superior growth over
time.
Thank you for your investment in the Strong Large Cap Growth Fund. We appreciate
the confidence you've placed in us.
Bruce C. Olson
Portfolio Manager
Average Annual Total Returns
As of 6-30-03
- ----------------------------------------------
1-year -2.09%
3-year -22.64%
5-year -3.29%
10-year 6.81%
Since Fund Inception 11.54%
(12-30-81)
Equity funds are volatile investments and should only be considered for
long-term goals.
* The S&P 500 Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market value weighted index
(stock price times number of shares outstanding), with each stock's weight
in the Index proportionate to its market value. The Lipper Large-Cap Growth
Funds Index is the average of the 30 largest funds in the Lipper Large-Cap
Growth Funds Category. Source of the S&P index data is Standard & Poor's
Micropal. Source of the Lipper index data is Lipper Inc.
9
Strong Large Company Growth Fund
================================================================================
Your Fund's Approach
The Strong Large Company Growth Fund seeks total return by investing for income
and capital growth. The Fund invests, under normal conditions, at least 80% of
its net assets in securities of approximately 50 large-capitalization companies
that its managers believe offer the potential for capital growth, consisting
primarily of income-producing equity securities. To identify stocks that offer
the opportunity for capital growth, the managers look for stocks that have a
record of growth in the areas of sales, earnings, or book value, and stocks that
have above-average returns on capital and equity. A proven management team and
business model are also evaluated to determine whether historic growth rates can
be replicated in the future. To select investments, the managers emphasize
capital appreciation and current yield. The Fund may also utilize an active
trading approach. The managers may choose to sell a holding when it no longer
offers attractive growth prospects or to take advantage of a better investment
opportunity.
Growth of an Assumed $10,000 Investment+
From 11-3-97 to 6-30-03
[CHART APPEARS HERE]
The Strong Lipper Large-Cap
Large Company S&P 500 Growth Funds
Growth Fund Index* Index*
Oct 97 $ 10,000 $ 10,000 $ 10,000
Dec 97 $ 10,106 $ 10,366 $ 10,339
Jun 98 $ 11,227 $ 12,201 $ 12,456
Dec 98 $ 11,605 $ 13,328 $ 14,110
Jun 99 $ 13,791 $ 14,978 $ 15,801
Dec 99 $ 17,657 $ 16,132 $ 19,023
Jun 00 $ 19,285 $ 16,064 $ 19,067
Dec 00 $ 18,248 $ 14,665 $ 15,280
Jun 01 $ 16,891 $ 13,683 $ 12,710
Dec 01 $ 16,610 $ 12,923 $ 11,633
Jun 02 $ 14,467 $ 11,224 $ 9,544
Dec 02 $ 13,605 $ 10,068 $ 8,362
Jun 03 $ 15,275 $ 11,251 $ 9,346
+ 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
S&P 500 Index ("S&P 500") and the Lipper Large-Cap Growth 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. The graph and the Average Annual Total
Returns table do not reflect the deduction of taxes, if any, that a
shareholder would pay on Fund distributions or the redemption of Fund
shares.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
The Fund began the year slightly behind its broad-based benchmark, the S&P 500
Index, as lower-quality stocks outperformed higher-quality issues.
As war with Iraq loomed on the horizon, however, investors sought more
conservative investments, allowing the Fund and its higher-quality names to
outperform. As a result, the Fund finished the first quarter slightly ahead of
its broad-based benchmark.
In the second quarter, however, as the war came to a quick resolution and
investors gained confidence in the prospects for economic recovery, stocks
staged a powerful rally, with riskier stocks once again taking the lead. This
left our returns slightly ahead those of our broad-based benchmark for the six
months. The Fund generated a year-to-date return of 12.27% compared to the S&P
500 Index, which generated a year-to-date return of 11.75% as of June 30, 2003.
All in all, it was a volatile but positive first half of the year.
An eventful six months
Three significant events took place during the first six months of 2003 that
were all positive for the stock market. First, the war with Iraq came to a
rather quick resolution; second, the Fed made a huge injection of liquidity into
the capital markets as it continued to battle deflation; and third, new tax
legislation was enacted that greatly benefits equity ownership. These were
clearly near-term positive events for the stock market and the Fund, but as is
so often the case, not all stocks react the same way at the same time.
10
The most immediate and dramatic beneficiaries of the Fed's action were all of
the companies that appeared to be priced for extinction. These
low-quality/low-priced stocks received a pardon of sorts, moving off of death
row and experiencing dramatic upward moves as it became obvious that they were
not going out of business--at least not yet. More volatile stocks, such as those
in the technology sector, did very well, as did some high-dividend payers
including companies in the utilities and telecommunications sectors.
The Fund's higher-quality orientation has served it very well over the past
couple of years, but during this lower-quality rally we have added some names
that are better positioned to participate in today's liquidity-driven
environment.
A disciplined investment approach
We believe that over time, the markets are very efficient allocators of capital.
That is, the best companies run by the best people with the best returns on
capital will eventually attract the capital. But in the real world, there are
also short-term periods of inefficiency. With this in mind, we have adopted a
very disciplined process to manage money on a year-to-year basis.
First, we like to keep the portfolio very nearly fully invested; second, we
generally keep our allocation to market sectors in line with those of the
Russell 1000(R) Growth Index; and third, we focus the bulk of our energies on
stock-picking. In selecting stocks, we look at the long term--that is,
identifying stocks that will attract capital over the long run. We also look at
stocks more likely to benefit over the short term--those that are attracting
capital today.
Sometimes, the long-run and short-run stocks are one and the same, but more
often than not, there are differences. Clearly this year so far is shaping up in
the latter profile, and during the first half of the year, we made some changes
to the portfolio to participate in the lower-quality rally. Of course, we also
kept significant positions in higher-quality companies more likely to perform
well in the long run.
Our outlook
Although the economy is still sluggish and geopolitical risks remain, for the
time being it appears that liquidity will continue to allow the market to rally.
The old Wall Street adage "Don't fight the Fed, and don't fight the tape"
appears to be holding true--especially when faced, as we are now, with massive
deficit spending, tax reductions, and a President campaigning for reelection. At
the moment, it appears that the direction of least resistance may be upward.
Thank you for your investment in the Strong Large Company Growth Fund.
Christopher H. Wiles
Portfolio Co-Manager
Lawrence E. Eakin, Jr.
Portfolio Co-Manager
Average Annual Total Returns
As of 6-30-03
- ----------------------------------------------
1-year/1/ 4.54%
3-year -7.48%
5-year 6.35%
Since Fund Inception 7.78%
(11-3-97)
Equity funds are volatile investments and should only be considered for
long-term goals.
From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
The performance of the Fund prior to 9-16-02 is based on the performance of
the Rockhaven Premier Dividend Fund (the predecessor Fund) and does not
reflect the Fund's maximum sales charge of 5.75%, which was charged from
9-17-99 through 9-15-02.
/1/ Average annual total returns include a 1.00% redemption fee (as a
percentage of redemption proceeds) imposed on redemptions made within 12
months of purchase.
* The S&P 500 Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market value weighted index
(stock price times number of shares outstanding), with each stock's weight
in the Index proportionate to its market value. The Lipper Large-Cap Growth
Funds Index is the average of the 30 largest funds in the Lipper Large-Cap
Growth Funds Category. Source of the S&P 500 index data is Standard &
Poor's Micropal. Source of the Lipper index data is Lipper Inc.
11
Strong U.S. Emerging Growth Fund
================================================================================
Your Fund's Approach
The Strong U.S. Emerging Growth Fund seeks capital growth. The Fund invests,
under normal conditions, at least 80% of its net assets in stocks of U.S.
companies that appear to have relatively strong long-term growth potential in
revenues and profitability. The Fund generally invests in the stocks of small-
and medium-capitalization companies, although the Fund can invest in stocks of
any size. To identify these companies, the managers look for several
characteristics, including strong revenue growth, high return on invested
capital, overall financial strength, competitive advantages, reasonable current
stock price, effective management, and competence in research, development, and
marketing. Although the Fund can invest in stocks of any economic sector, at
times it may emphasize the technology sector or other sectors. The managers may
choose to sell a holding if its value becomes unattractive (e.g., when its
fundamental qualities deteriorate or when other investment opportunities exist
that have more attractive returns).
Growth of an Assumed $10,000 Investment+
From 12-31-98 to 6-30-03
[CHART APPEARS HERE]
The Strong Lipper Small-Cap
U.S. Emerging Russell 2000(R) Growth Funds
Growth Fund Index* Index*
Dec 98 $ 10,000 $ 10,000 $ 10,000
Mar 99 $ 12,080 $ 9,458 $ 9,675
Jun 99 $ 12,330 $ 10,928 $ 11,053
Sep 99 $ 13,000 $ 10,237 $ 11,253
Dec 99 $ 19,886 $ 12,126 $ 16,117
Mar 00 $ 24,038 $ 12,985 $ 19,003
Jun 00 $ 25,307 $ 12,494 $ 17,986
Sep 00 $ 24,393 $ 12,632 $ 17,702
Dec 00 $ 19,943 $ 11,759 $ 14,787
Mar 01 $ 15,085 $ 10,994 $ 11,996
Jun 01 $ 18,976 $ 12,565 $ 13,996
Sep 01 $ 12,494 $ 9,953 $ 10,493
Dec 01 $ 15,782 $ 12,052 $ 12,869
Mar 02 $ 14,731 $ 12,532 $ 12,683
Jun 02 $ 12,609 $ 11,485 $ 10,973
Sep 02 $ 10,549 $ 9,027 $ 8,833
Dec 02 $ 10,424 $ 9,583 $ 9,314
Mar 03 $ 10,081 $ 9,153 $ 8,967
Jun 03 $ 12,463 $ 11,297 $ 11,060
+ 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
Russell 2000(R) Index and the Lipper Small-Cap Growth 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. The graph and the Average Annual Total Returns table do not
reflect the deduction of taxes, if any, that a shareholder would pay on
Fund distributions or the redemption of Fund shares.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
Over the six months ended June 30, 2003, the Fund performed in line with its
broad-based benchmark, the Russell 2000 Index. Volatility prevailed in the
year's first quarter, as daily mood swings over the impending and then
progressive war in Iraq overshadowed the markets. In the second quarter, as the
war concluded, the market began to rally. Consumer sentiment rebounded from very
depressed levels, and capital spending numbers are beginning to improve after
years of very poor results. These factors all contributed to a strong second
quarter for the Fund. As of June 30, 2003, the Fund generated a year-to-date
return of 19.56%.
Market turned in the second quarter
The war in Iraq was likely the most important event in the first half of 2003.
As consumer and business confidence plummeted in anticipation of the war, equity
markets languished. In this choppy environment, the market's direction was
dictated more by emotions than fundamentals.
With the quick resolution of the war in the second quarter, the markets began to
rebound, as investors turned their focus to the prospects for economic recovery.
The Federal Reserve's interest-rate cuts, coupled with aggressive fiscal
stimulus in the form of tax reductions, sparked investors' confidence in an
improving economy and helped to drive the markets strongly upward.
12
Over the first half of 2003, we saw a continuation of the yearlong trend of
growth stocks outperforming their value-oriented counterparts, as measured by
the Russell 2000(R) Growth Index.
Preparing for economic recovery
In November 2002, we repositioned the Fund to benefit from an environment of
improving business conditions and increasing consumer confidence. We anticipated
that the Federal Reserve would continue its efforts to stimulate the economy in
2003, as the Fed signaled concerns about deflation occurring in the United
States. Given the economy's overall weakness in the first quarter, however, this
positioning hurt our performance in the year's early months. In the second
quarter, however, as the economy showed signs of improvement and the markets
moved upward, our strategy had positive impact on fund returns.
Given our economic outlook, we added to the Fund's positions in those sectors
that have traditionally done well coming out of slow economic periods. These
include truckers, freight forwarders, restaurants, and technology. We also began
to add to our position in the energy sector.
After three years with almost no drilling activity, the numbers of active rigs
are beginning to move up. Further, we believe that given the very tight current
supply situation for natural gas, a new production cycle for that commodity may
be beginning.
We reduced our holdings in some of the more defensive stocks in our portfolio.
These positions were beneficial in more uncertain times, but such companies
historically have not participated as strongly in an economic recovery.
Our outlook for the months ahead
As the U.S. economy moves more decisively toward recovery, we believe that
corporate profits will exceed expectations over the remainder of 2003. The
improving economy, along with low interest rates, low inflation, and large
stockpiles of cash sitting on the investment sidelines, could all be positive
for the equity markets in general, and particularly for smaller-cap growth
stocks. In addition, we believe we are just about one year into a cycle of
growth stocks outperforming value based on total returns--as measured by the
Russell 2000 Growth Index--and these cycles have historically lasted three to
five years. We thus believe that there is potential for the environment for
growth investing to remain favorable for some time.
We thank you for your investment in the Strong U.S. Emerging Growth Fund.
Thomas L. Press
Portfolio Co-Manager
Donald M. Longlet
Portfolio Co-Manager
Robert E. Scott
Portfolio Co-Manager
Average Annual Total Returns
As of 6-30-03
- ----------------------------------------------
1-year -1.16%
3-year -21.03%
Since Fund Inception 5.02%
(12-31-98)
The Fund's return since inception was significantly enhanced through investments
in initial public offerings. You should not expect that such favorable returns
can be consistently achieved. Please consider this before investing.
Equity funds are volatile investments and should only be considered for
long-term goals.
From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
Because smaller companies often have narrower markets and limited financial
resources, investments in these stocks present more risk than investments
in those of larger, more established companies.
* The Russell 2000(R) Index measures the performance of the 2,000 smallest
companies in the Russell 3000(R) Index, which represents approximately 8%
of the total market capitalization of the Russell 3000(R) Index. The Lipper
Small-Cap Growth Funds Index is the average of the 30 largest funds in the
Lipper Small-Cap Growth Funds Category. Source of the Russell index data is
Standard & Poor's Micropal. Source of the Lipper index data is Lipper Inc.
13
Strong Enterprise Fund
================================================================================
Your Fund's Approach
The Strong Enterprise Fund seeks capital growth. The Fund invests, under normal
conditions, in stocks of small- and medium-capitalization companies, though it
may invest in companies of any size. It focuses on companies that the manager
believes are positioned for rapid growth of revenue and earnings. The Fund's
manager strives to find leading companies in rapidly growing industries such as
business services, computer and digital products, financial services, healthcare
services, Internet-related companies, medical technology, retail, and
telecommunication. Companies that have the potential for accelerated earnings
growth because of management changes, new products, or changes in the economy
also may be attractive candidates for the portfolio. The Fund may also invest up
to 25% of its net assets in foreign securities. In addition, the Fund may
utilize an active trading approach. If there is a change in the company's growth
prospects or a deterioration in the company's fundamental qualities, the manager
may sell that company's stock.
Growth of an Assumed $10,000 Investment+
From 9-30-98 to 6-30-03
[CHART APPEARS HERE]
The Strong Russell Lipper Mid-Cap
Enterprise Midcap(R) Growth Funds
Fund Index* Index*
Sep 98 $ 10,000 $ 10,000 $ 10,000
Dec 98 $ 14,743 $ 11,844 $ 12,595
Mar 99 $ 17,255 $ 11,788 $ 13,062
Jun 99 $ 20,732 $ 13,068 $ 14,633
Sep 99 $ 24,777 $ 11,945 $ 14,779
Dec 99 $ 42,436 $ 14,003 $ 21,879
Mar 00 $ 48,127 $ 15,415 $ 25,000
Jun 00 $ 40,378 $ 14,720 $ 22,820
Sep 00 $ 39,360 $ 15,722 $ 23,545
Dec 00 $ 29,801 $ 15,158 $ 18,350
Mar 01 $ 23,435 $ 13,567 $ 14,132
Jun 01 $ 25,694 $ 14,861 $ 16,064
Sep 01 $ 19,916 $ 12,207 $ 12,151
Dec 01 $ 23,257 $ 14,306 $ 14,484
Mar 02 $ 22,794 $ 14,913 $ 14,071
Jun 02 $ 19,843 $ 13,489 $ 11,968
Sep 02 $ 16,639 $ 11,110 $ 9,895
Dec 02 $ 16,702 $ 11,990 $ 10,360
Mar 03 $ 16,513 $ 11,707 $ 10,193
Jun 03 $ 19,265 $ 13,845 $ 11,994
+ 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
Russell Midcap(R) Index and the Lipper Mid-Cap Growth 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. The graph and the Average Annual Total Returns table do not
reflect the deduction of taxes, if any, that a shareholder would pay on
Fund distributions or the redemption of Fund shares. This graph is based on
Investor Class shares only; performance for other classes will vary, due to
differences in fee structures.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
During the first six months of 2003, the Enterprise Fund delivered its strongest
six-month performance since 1999. The Fund rallied when the stock market sprang
back to life, as investors anticipated an improving economic environment after
the Iraq war. This enthusiasm eventually produced an increased appetite among
investors for riskier investments and a relatively speculative environment.
The Enterprise Fund slightly underperformed its broad-based benchmark, the
Russell Midcap Index. The Fund's preference for higher-quality technology and
energy companies, rather than smaller, more speculative investments, is largely
responsible for this relative performance.
War began and ended swiftly
One of the most significant events during the first half of 2003 was the onset
and conclusion of major combat in the war in Iraq. In the early part of the
year, there was much uncertainty as to whether the war would take place at all
and, if so, how long it might last. In such an environment, business leaders
were unwilling to make significant capital expenditures or to hire new
employees. As a result, the entire economy was in a holding pattern until the
main thrust of the conflict ended in mid-April.
As the war drew closer to an end, consumer sentiment soared upward, and the
market experienced an increase in speculative activity, with market participants
demonstrating a preference for riskier companies in the biotech, Internet,
communication, technology, and cyclical sectors. As May progressed, however,
actual evidence of an improving economy failed to materialize. In response,
interest rates began to fall, which further fueled investor
14
speculation, increasing demand for interest rate-sensitive and highly leveraged
companies. During this period the Fund experienced most of its underperformance,
as many of its investments were in higher-quality companies positioned to
benefit from an eventual turn in the economy.
Other contributing factors to the strong equity market in May and June were the
announcements out of Washington of a dividend tax cut, a corporate spending
stimulus package, and a Medicare drug benefit program.
Shifting market sentiment toward technology
Early in the year, we positioned the Fund with a significant underweighting in
technology, as compared to the Russell Midcap Growth Index. We adopted this
posture in anticipation of a reversal of the speculative run-up many of these
stocks had experienced in the fourth quarter of 2002. That reversal materialized
in late January and continued through March, during which time we accumulated
shares of the high-quality technology companies--names we believed would rebound
with the economy as the conflict in Iraq subsided. We also reduced our energy
exposure in early March, anticipating that energy prices would fall from their
record highs and that consequently, the stocks of oil producers and oil service
companies would underperform relative to the Russell Midcap Growth Index. The
eventual rebound of smaller, speculative technology companies and the
continuation of higher energy prices after the war made these strategies less
than optimal.
On the positive side, the Fund's overweighted position, relative to the Russell
Midcap Growth Index, in the automotive and transportation sectors performed well
during the period. In addition, tax cuts that were perceived as favorable to
businesses and consumers created a tailwind for our holdings in the advertising,
media, and retail sectors.
Seeking pockets of opportunity
With the many changes taking place across many industries in the U.S. economy,
we believe this may be one of the most exciting times for the stock market in
several years. Much of the recent optimism for an economic recovery rests on the
implicit assumption that fiscal and monetary policies will be successful in
stimulating capital spending and increasing earnings growth.
From our perspective, the backdrop for economic growth and the resumption of
business spending will likely remain challenging, due to low interest rates and
an ample supply of capital chasing a limited number of investment opportunities.
However, it appears there are pockets of significant earnings growth
materializing on many different fronts. These are the result of technological
innovations, rationalization of cost structures, or industry consolidation.
In our view, this environment will require growth investors to identify
beneath-the-surface growth opportunities in industries such as technology,
biotechnology, energy, industrial cyclicals, and niche-oriented consumer goods.
We remain dedicated to identifying these investment opportunities as they emerge
in a select number of mid-cap and smaller-cap companies.
Thank you for your investment in the Strong Enterprise Fund.
Thomas J. Pence
Portfolio Manager
Average Annual Total Returns
As of 6-30-03
Investor Class/1/
- ----------------------------------------------
1-year -2.91%
3-year -21.86%
Since Fund Inception 14.81%
(9-30-98)
Advisor Class/2/
- ----------------------------------------------
1-year -2.50%
3-year -21.87%
Since Fund Inception 14.68%
(9-30-98)
Class K/1/, /3/
- ----------------------------------------------
1-year -2.33%
3-year -21.70%
Since Fund Inception 14.95%
(9-30-98)
Equity funds are volatile investments and should only be considered for
long-term goals.
/1/ From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
/2/ The performance of the Advisor Class shares prior to 2-24-00 is based on
the Fund's Investor Class shares' performance, restated for the higher
expense ratio of the Advisor Class shares. Please consult a prospectus for
information about all share classes.
/3/ The performance of Class K shares prior to 8-30-02 is based on the Fund's
Investor Class shares' performance. Please consult a prospectus for
information about all share classes.
Because smaller companies often have narrower markets and limited financial
resources, investments in these stocks present more risk than investments
in those of larger, more established companies.
* The Russell Midcap(R) Index measures the performance of the 800 smallest
companies in the Russell 1000(R) Index, which represent approximately 26%
of the total market capitalization of the Russell 1000(R) Index. The Lipper
Mid-Cap Growth Funds Index is the average of the 30 largest funds in the
Lipper Mid-Cap Growth Funds Category. Source of the Russell index data is
Standard & Poor's Micropal. Source of the Lipper index data is Lipper Inc.
15
Strong Growth 20 Fund
================================================================================
Your Fund's Approach
The Strong Growth 20 Fund seeks capital growth. The Fund focuses, under normal
conditions, on the stocks of 20 to 30 companies that its manager believes have
favorable prospects for superior growth of earnings but are selling at
reasonable valuations based on their earnings, cash flow, or asset value.
The portfolio can include stocks of any size. Although the Fund can invest
in stocks of any economic sector, at times it may emphasize the consumer
cyclicals, healthcare, and technology sectors or other sectors. The Fund may
invest in derivative securities for nonspeculative purposes (e.g., to manage
investment risk, for liquidity, or to enhance the Fund's return) and may utilize
an active trading approach. The manager may sell a stock when the company's
growth prospects become less attractive.
Growth of an Assumed $10,000 Investment+
From 6-30-97 to 6-30-03
[CHART APPEARS HERE]
The Strong Lipper Mid-Cap
Growth 20 S&P 500 Growth Funds
Fund Index* Index*
Jun 97 $ 10,000 $ 10,000 $ 10,000
Dec 97 $ 11,387 $ 11,057 $ 10,955
Jun 98 $ 13,129 $ 13,015 $ 12,789
Dec 98 $ 15,545 $ 14,217 $ 13,672
Jun 99 $ 18,891 $ 15,977 $ 15,626
Dec 99 $ 32,563 $ 17,208 $ 20,009
Jun 00 $ 35,646 $ 17,136 $ 21,489
Dec 00 $ 29,199 $ 15,643 $ 17,597
Jun 01 $ 19,973 $ 14,596 $ 14,999
Dec 01 $ 17,127 $ 13,785 $ 13,170
Jun 02 $ 14,152 $ 11,972 $ 10,518
Dec 02 $ 11,840 $ 10,740 $ 9,242
Jun 03 $ 13,165 $ 12,002 $ 10,687
+ 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
S&P 500 Index and the Lipper Multi-Cap Growth 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. The graph and the Average Annual Total Returns table do not
reflect the deduction of taxes, if any, that a shareholder would pay on
Fund distributions or the redemption of Fund shares. This graph is based on
Investor Class shares only; performance for other classes will vary, due to
differences in fee structures.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
For the first half of 2003, the Growth 20 Fund had solid absolute returns,
though its performance slightly lagged that of its broad-based benchmark, the
S&P 500 Index. The Fund outperformed during the first quarter, when the overall
market declined slightly, then performed more in line with--though below--the
broad-based benchmark during the second-quarter rally. The Fund generated a
year-to-date return of 11.19% compared to the S&P 500 Index, which generated a
year-to-date return of 11.75% as of June 30, 2003.
The market's tone shifted markedly
While we entered the year with a sense of cautious optimism, the beginning of
2003 saw a continuation of the worries that plagued the market over the
preceding three years, particularly concerns over the state of the economy and
the health of the U.S. consumer. Added to these was the uncertainty surrounding
the impending war with Iraq and other geopolitical tensions. Stocks sold off
early in the year in response to these factors.
In time, however, a positive reality began to offset these fears. When
first-quarter results came in, profit growth proved to be strong. The war in
Iraq was doing well. Compounding the impact of this good news were the continued
easing of interest
16
rates by the Federal Reserve, acceleration of income tax cuts, and reductions in
the tax rates on dividends and capital gains. A weaker U.S. dollar also helped
by making our goods more attractive in foreign markets. All together, these
conditions helped to spur a sweeping stock market rally, with virtually every
market sector producing solid, positive returns during the second quarter and
for the six months overall.
Factors in the Fund's performance
The top contributors to the Fund's performance were in the healthcare sector, an
area witnessing outstanding growth in revenue and earnings. Demographic trends
are doing much to support this sector, as an aging population demands more and
better health-related products and services. Other pockets of strength included
education and communications technology. The most significant areas of weakness
included retail and energy.
In making our investment decisions over the period, we continued to rely heavily
on our hands-on, research-intensive investment process, looking for those
companies that are leaders in their industries or have the potential to become
one. We seek out companies with strong management teams, solid balance sheets,
and sensible business models.
Our outlook for growth investing
We continue to believe the environment for improving corporate profitability is
providing investors with significant opportunities. As we have in the past, we
continue to search out and invest in companies with strong competitive
advantages that we believe can generate superior earnings and revenue growth.
These stocks don't lead the market every quarter, but we believe this is a
rewarding long-term strategy.
We believe the current environment is very similar to that which prevailed in
the early 1960s, when low inflation, low interest rates, and moderate economic
growth combined to help produce a strong cyclical bull market. We will continue
to adhere to our active investment strategy, emphasizing compelling investment
themes based on changing demographics, medical advances, and unit growth, which
we believe can lead us to sectors with the potential for superior growth over
time.
Thank you for your investment in the Strong Growth 20 Fund.
Brandon M. Nelson
Portfolio Manager
Average Annual Total Returns
As of 6-30-03
Investor Class
- ----------------------------------------------
1-year -6.98%
3-year -28.25%
5-year 0.05%
Since Fund Inception 4.69%
(6-30-97)
Advisor Class/1/
- ----------------------------------------------
1-year -6.67%
3-year -28.20%
5-year -0.01%
Since Fund Inception 4.59%
(6-30-97)
The Fund's return since inception was significantly enhanced through investments
in initial public offerings. You should not expect that such favorable returns
can be consistently achieved. Please consider this before investing.
Equity funds are volatile investments and should only be considered for
long-term goals.
From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
/1/ The performance of the Advisor Class shares prior to 2-24-00 is based on
the Fund's Investor Class shares' performance, restated for the higher
expense ratio of the Advisor Class shares. Please consult a prospectus for
information about all share classes.
The Fund is nondiversified, meaning it may concentrate its assets in fewer
individual holdings than a diversified fund. Therefore, the Fund is more
exposed to individual stock volatility and market pressure than a fully
diversified fund.
* The S&P 500 Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market value weighted index
(stock price times number of shares outstanding), with each stock's weight
in the Index proportionate to its market value. The Lipper Multi-Cap Growth
Funds Index is the average of the 30 largest funds in the Lipper Multi-Cap
Growth Funds Category. Source of the S&P index data is Standard & Poor's
Micropal. Source of the Lipper index data is Lipper Inc.
17
Strong Growth Fund
================================================================================
Your Fund's Approach
The Strong Growth Fund seeks capital growth. The Fund focuses, under normal
conditions, on stocks of companies that its manager believes have favorable
prospects for superior growth of earnings but are selling at reasonable
valuations based on earnings, cash flow, or asset value. The portfolio can
include stocks of any size. Although the Fund can invest in stocks of any
economic sector, at times it may emphasize the consumer cyclicals, healthcare,
and technology sectors or other sectors. The Fund may invest in derivative
securities for nonspeculative purposes (e.g., to manage investment risk, for
liquidity, or to enhance the Fund's return) and may utilize an active trading
approach. The manager may sell a stock when the company's growth prospects
become less attractive.
Growth of an Assumed $10,000 Investment+
From 12-31-93 to 6-30-03
[CHART APPEARS HERE]
Lipper
The Strong Multi-Cap
Growth S&P 500 Growth Funds
Fund Index* Index*
Dec 93 $ 10,000 $ 10,000 $ 10,000
Dec 94 $ 11,727 $ 10,132 $ 9,718
Dec 95 $ 16,535 $ 13,934 $ 12,994
Dec 96 $ 19,763 $ 17,132 $ 15,314
Dec 97 $ 23,528 $ 22,845 $ 18,828
Dec 98 $ 29,877 $ 29,373 $ 23,497
Dec 99 $ 52,302 $ 35,553 $ 34,389
Dec 00 $ 47,473 $ 32,319 $ 30,244
Dec 01 $ 31,146 $ 28,481 $ 22,634
Dec 02 $ 23,271 $ 22,189 $ 15,884
Jun 03 $ 26,654 $ 24,797 $ 18,367
+ 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
S&P 500 Index and the Lipper Multi-Cap Growth 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. The graph and the Average Annual Total Returns table do not
reflect the deduction of taxes, if any, that a shareholder would pay on
Fund distributions or the redemption of Fund shares. This graph is based on
Investor Class shares only; performance for other classes will vary due to
differences in fee structures.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
The first half of 2003 was very much a tale of two quarters. In the first
quarter, results were essentially flat, as the markets first continued their
sell-off from late 2002, then began to rally toward the second half of March. In
the second quarter, however, the equity markets improved sharply, posting their
strongest quarter in years. In this environment, the Strong Growth Fund
outperformed its benchmark by generating a year-to-date return of 14.53%
compared to the S&P 500 Index return of 11.75% as of June 30, 2003.
A strong market rally
While we entered the year with a sense of cautious optimism, the beginning of
2003 saw a continuation of the worries that plagued the market over the
preceding three years, particularly concerns over the state of the economy and
the health of the U.S. consumer. Added to these was the uncertainty surrounding
the impending war with Iraq and other geopolitical tensions.
In time, however, a positive reality began to offset these fears. When
first-quarter results came in, profit growth proved to be strong. The war in
Iraq was successful and relatively short in duration.
Compounding the impact of this good news was continued easing of interest rates
by the Federal Reserve, acceleration of income tax cuts, and reductions in the
tax rates on dividends and capital gains.
Finally, improvement in the corporate bond market had significant impact on
equities as well; the tightening of yield spreads on corporate debt provided
companies with a significant opportunity to improve their balance sheets. Taken
all together, these factors helped to spur a sweeping stock market rally, with
virtually every market sector producing solid, positive returns.
18
Changes to the portfolio contributed to performance
The Fund entered 2003 fully invested, with an emphasis on companies and sectors
positioned to benefit most strongly from an improving economy. We had taken the
opportunity in late 2002 and early 2003 to reduce some of the Fund's weighting
in the consumer area, as we saw attractive opportunities to invest in growth
stocks in other sectors such as technology and healthcare.
We had also increased our allocation to energy-related stocks, as in our
assessment a very tight market for natural gas presented a good growth
opportunity for a number of companies. These changes made positive contributions
to our results in the first half of the year. Near the end of the six-month
period, we shifted some assets back to consumer stocks that we believe offer
superior growth prospects going forward.
In making all of these decisions, we relied heavily on our hands-on,
research-intensive investment process, seeking out those companies that are
leaders in their industries or have the potential to become one. We seek out
those companies with strong management teams, solid balance sheets, and sensible
business models. Attention to valuations remains an important element of our
decision-making process.
Our outlook
We continue to believe the environment for improving corporate profitability is
providing investors with significant opportunities. As we have in the past, we
continue to search out and invest in companies with strong competitive
advantages that can generate superior earnings and revenue growth. These stocks
don't lead the market every quarter, but we believe this can be a rewarding
long-term strategy.
We believe the current environment is very similar to that which prevailed in
the early 1960s, when low inflation, low interest rates, and moderate economic
growth combined to help produce a strong cyclical bull market. We will continue
to adhere to our active investment strategy, emphasizing compelling investment
themes based on changing demographics, medical advances, and unit growth, which
we believe can lead us to sectors with the potential for superior growth over
time.
Thank you for your investment in the Strong Growth Fund. We appreciate the
confidence you've continued to place in us.
Thomas C. Ognar
Portfolio Manager
Average Annual Total Returns
As of 6-30-03
Investor Class
- ----------------------------------------------
1-year 0.80%
3-year -22.25%
5-year -0.53%
Since Fund Inception 10.88%
(12-31-93)
Institutional Class/2/
- ----------------------------------------------
1-year 1.51%
3-year -21.69%
5-year -0.07%
Since Fund Inception 11.14%
(12-31-93)
Advisor Class/3/
- ----------------------------------------------
1-year 0.80%
3-year -22.35%
5-year -0.72%
Since Fund Inception 10.60%
(12-31-93)
Class C/1/, /4/
- ----------------------------------------------
1-year -1.01%
3-year -23.02%
5-year -1.60%
Since Fund Inception 9.62%
(12-31-93)
Class K/1/, /5/
- ----------------------------------------------
1-year 1.73%
3-year -22.01%
5-year -0.35%
Since Fund Inception 10.98%
(12-31-93)
Equity funds are volatile investments and should only be considered for
long-term goals.
/1/ From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
/2/ The performance of the Institutional Class shares prior to 2-24-00 is based
on the Fund's Investor Class shares' performance. Please consult a
prospectus for information about all share classes.
/3/ The performance of the Advisor Class shares prior to 2-24-00 is based on
the Fund's Investor Class shares' performance, restated for the higher
expense ratio of the Advisor Class shares. Please consult a prospectus for
information about all share classes.
/4/ The performance of Class C shares prior to 12-26-02 is based on the Fund's
Investor Class shares' performance restated for the higher expense ratio of
the Class C shares. Please consult a prospectus for information about all
share classes. Average annual total returns include a 1.00% contingent
deferred sales charge imposed on redemptions made within 12 months of
purchase.
/5/ The performance of Class K shares prior to 8-30-02 is based on the Fund's
Investor Class shares' performance. Please consult a prospectus for
information about all share classes.
* The S&P 500 Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market value weighted index
(stock price times number of shares outstanding), with each stock's weight
in the Index proportionate to its market value. The Lipper Multi-Cap Growth
Funds Index is the average of the 30 largest funds in the Lipper Multi-Cap
Growth Funds Category. Source of the S&P index data is Standard & Poor's
Micropal. Source of the Lipper index data is Lipper Inc.
19
SCHEDULES OF INVESTMENTS IN SECURITIES June 30, 2003 (Unaudited)
- -------------------------------------------------------------------------------
STRONG BLUE CHIP FUND
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Common Stocks 92.5%
Banks - Money Center 4.3%
Citigroup, Inc. 184,800 $ 7,909,440
Building - Resident/Commercial 10.2%
Centex Corporation 59,600 4,636,284
D.R. Horton, Inc. 176,700 4,965,270
Lennar Corporation Class A 69,800 4,990,700
Pulte Homes, Inc. 68,700 4,236,042
--------------
18,828,296
Computer - Local Networks 3.1%
Cisco Systems, Inc. (b) 343,600 5,734,684
Computer - Manufacturers 3.0%
Dell, Inc. (b) 175,300 5,602,588
Computer - Memory Devices 1.9%
EMC Corporation (b) 334,000 3,496,980
Computer Software - Desktop 3.3%
Microsoft Corporation 238,200 6,100,302
Computer Software - Enterprise 1.5%
Oracle Systems Corporation (b) 221,900 2,667,238
Diversified Operations 5.3%
AOL Time Warner, Inc. (b) 255,800 4,115,822
General Electric Company 197,500 5,664,300
--------------
9,780,122
Electronics - Semiconductor Manufacturing 4.5%
Analog Devices, Inc. (b) 137,000 4,770,340
Intel Corporation 168,900 3,510,418
--------------
8,280,758
Finance - Investment Brokers 4.8%
The Goldman Sachs Group, Inc. 67,600 5,661,500
Lehman Brothers Holdings, Inc. 48,100 3,197,688
--------------
8,859,188
Financial Services - Miscellaneous 3.0%
First Data Corporation 132,100 5,474,224
Food - Miscellaneous Preparation 2.1%
PepsiCo, Inc. 86,100 3,831,450
Insurance - Brokers 2.0%
Marsh & McLennan Companies, Inc. 71,400 3,646,398
Internet - E*Commerce 6.1%
eBay, Inc. (b) 53,900 5,615,302
InterActiveCorp (b) 141,300 5,591,241
--------------
11,206,543
Internet - Internet Service
Provider/Content 3.3%
Yahoo! Inc. (b) 186,300 6,103,188
Medical - Biomedical/Genetics 7.4%
Amgen, Inc. (b) 92,700 6,158,988
Gilead Sciences, Inc. (b) 71,900 3,996,202
Medimmune, Inc. (b) 91,800 3,338,766
--------------
13,493,956
Medical - Ethical Drugs 6.5%
Forest Laboratories, Inc. (b) 104,700 5,732,325
Pfizer, Inc. 182,000 6,215,300
--------------
11,947,625
Medical - Generic Drugs 3.1%
Teva Pharmaceutical Industries, Ltd. ADR 101,500 5,778,395
Medical - Products 4.3%
Boston Scientific Corporation (b) 72,700 4,441,970
St. Jude Medical, Inc. (b) 60,800 3,496,000
--------------
7,937,970
Medical - Wholesale
Drugs/Sundries 2.1%
AmerisourceBergen Corporation 54,100 3,751,835
Oil & Gas - Field Services 1.8%
Schlumberger, Ltd. 70,500 3,353,685
Oil & Gas - United States
Exploration & Production 1.0%
Burlington Resources, Inc. 32,000 1,730,240
Retail/Wholesale - Building
Products 2.6%
The Home Depot, Inc. 71,500 2,368,080
Lowe's Companies, Inc. 56,700 2,435,265
--------------
4,803,345
Telecommunications - Cellular 3.8%
Nextel Communications, Inc. Class A (b) 382,000 6,906,560
Tobacco - 1.5%
Altria Group, Inc. 61,500 2,794,560
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $150,006,192) 170,019,570
- -------------------------------------------------------------------------------
Short-Term Investments (a) 7.9%
Repurchase Agreements
ABN AMRO Inc. (Dated 6/30/03), 1.20%,
Due 7/01/03 (Repurchase proceeds
$13,100,437); Collateralized by: United
States Government & Agency Issues (c) $ 13,100,000 13,100,000
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds
$1,476,031); Collateralized by: United
States Government & Agency Issues (c) 1,476,000 1,476,000
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $14,576,000) 14,576,000
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $164,582,192) 100.4% 184,595,570
Other Assets & Liabilities, Net (0.4%) (777,825)
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 183,817,745
===============================================================================
STRONG DISCOVERY FUND
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Common Stocks 98.5%
Auto/Truck - Original Equipment 1.2%
Eaton Corporation 22,300 $ 1,753,003
Banks - Northeast 1.2%
Mercantile Bankshares Corporation 43,515 1,713,621
20
- -------------------------------------------------------------------------------
STRONG DISCOVERY FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Beverages - Soft Drinks 0.7%
Cott Corporation (b) 49,390 $ 1,021,879
Building - Mobile/Manufacturers & RV 0.4%
Champion Enterprises, Inc. (b) 117,500 608,650
Chemicals - Fertilizers 0.7%
Agrium, Inc. 98,165 1,075,888
Commercial - Leasing Companies 0.6%
Ryder Systems, Inc. 32,900 842,898
Commercial Services - Advertising 1.6%
Lamar Advertising Company (b) 67,730 2,384,773
Commercial Services - Business
Services 0.7%
The Advisory Board Company (b) 26,700 1,081,884
Commercial Services - Miscellaneous 0.4%
Corporate Executive Board Company (b) 12,700 514,731
Commercial Services - Schools 1.4%
Career Education Corporation (b) 31,000 2,121,020
Commercial Services - Staffing 1.1%
kforce.com, Inc. (b) 400 1,932
Monster Worldwide, Inc. (b) 84,910 1,675,274
--------------
1,677,206
Computer - Integrated Systems 0.5%
Symbol Technologies, Inc. 53,500 696,035
Computer - Local Networks 1.0%
Juniper Networks, Inc. (b) 116,400 1,439,868
Computer Software - Desktop 0.8%
Adobe Systems, Inc. 37,460 1,201,342
Computer Software - Enterprise 1.9%
Mercury Interactive Corporation (b) 49,135 1,897,102
Siebel Systems, Inc. (b) 96,100 916,794
--------------
2,813,896
Computer Software - Financial 0.7%
Sungard Data Systems, Inc. (b) 40,400 1,046,764
Computer Software - Security 1.1%
Symantec Corporation (b) 36,670 1,608,346
Consumer Products - Miscellaneous 0.5%
Select Comfort Corporation (b) 43,600 717,220
Diversified Operations 1.8%
Alleghany Corporation (b) 8,423 1,608,793
Wesco Financial Corporation 3,481 1,086,072
--------------
2,694,865
Electrical - Equipment 0.8%
Regal-Beloit Corporation 57,460 1,097,486
Electronics - Semiconductor
Equipment 3.9%
ChipPAC, Inc. Class A (b) 204,200 1,566,214
Cymer, Inc. (b) 34,900 1,101,444
KLA-Tencor Corporation (b) 48,750 2,266,388
Novellus Systems, Inc. (b) 20,600 754,393
--------------
5,688,439
Electronics - Semiconductor
Manufacturing 5.6%
Altera Corporation (b) 81,400 1,334,960
Applied Micro Circuits Corporation (b) 144,500 874,225
Intersil Holding Corporation Class A (b) 73,600 1,958,496
Microchip Technology, Inc. 44,250 1,089,877
Micron Technology, Inc. (b) 73,700 857,131
Semtech Corporation (b) 74,800 1,065,152
Xilinx, Inc. (b) 40,900 1,035,179
--------------
8,215,020
Finance - Consumer/Commercial Loans 0.5%
Providian Financial Corporation (b) 73,500 680,610
Finance - Equity REIT 0.5%
Vornado Realty Trust 16,975 740,110
Finance - Investment Brokers 1.0%
Legg Mason, Inc. 21,500 1,396,425
Finance - Investment Management 1.6%
Neuberger Berman, Inc. 42,100 1,680,211
SEI Investments Company 19,210 614,720
--------------
2,294,931
Finance - Publicly Traded Investment
Funds-Equity (Non 40 Act) 0.0%
Biotech Holders Trust 70 8,628
Financial Services - Miscellaneous 0.9%
Investors Financial Services Corporation 42,800 1,241,628
Food - Meat Products 0.2%
Seaboard Corporation 1,177 243,639
Household - Audio/Video 0.7%
Harman International Industries, Inc. 12,155 961,947
Household - Office Furniture 0.2%
Furniture Brands International, Inc. (b) 13,800 360,180
Insurance - Property/Casualty/Title 1.5%
Erie Indemnity Company Class A 16,900 697,125
White Mountains Insurance Group, Ltd. 3,650 1,441,750
--------------
2,138,875
Internet - E*Commerce 1.0%
Priceline.com, Inc. (b) 62,338 1,391,392
Internet - Software 0.8%
BEA Systems, Inc. (b) 103,520 1,124,227
Leisure - Gaming 0.7%
Harrah's Entertainment, Inc. (b) 25,430 1,023,303
Leisure - Hotels & Motels 1.9%
Hilton Hotels Corporation 105,120 1,344,485
Starwood Hotels & Resorts Worldwide, Inc. 50,800 1,452,372
--------------
2,796,857
Leisure - Movies & Related 0.8%
Regal Entertainment Group Class A 52,100 1,228,518
21
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- -------------------------------------------------------------------------------
STRONG DISCOVERY FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Leisure - Services 3.5%
International Speedway Corporation Class A 26,800 $ 1,058,868
Royal Caribbean Cruises, Ltd. 137,630 3,187,511
Vail Resorts, Inc. (b) 63,640 857,231
--------------
5,103,610
Leisure - Toys/Games/Hobby 0.7%
Leapfrog Enterprises, Inc. Class A (b) 34,100 1,084,721
Machinery - Construction/Mining 1.2%
JLG Industries, Inc. 124,800 848,640
Terex Corporation (b) 44,100 860,832
--------------
1,709,472
Machinery - General Industrial 2.0%
Sauer-Danfoss, Inc. 47,210 507,507
Tennant Company 22,500 826,875
UNOVA, Inc. (b) 145,300 1,612,830
--------------
2,947,212
Media - Newspapers 3.0%
Lee Enterprises, Inc. 29,850 1,120,271
The E.W. Scripps Company Class A 37,455 3,323,008
--------------
4,443,279
Media - Radio/TV 5.7%
Cox Radio, Inc. Class A (b) 18,200 420,602
Emmis Broadcasting Corporation Class A (b) 140,800 3,231,360
LIN TV Corporation (b) 61,470 1,447,618
Spanish Broadcasting System, Inc. Class A (b) 95,000 774,250
Univision Communications, Inc. Class A (b) 62,690 1,905,776
Westwood One, Inc. (b) 18,400 624,312
--------------
8,403,918
Medical - Biomedical/Genetics 5.4%
Amylin Pharmaceuticals, Inc. (b) 11,700 256,113
Digene Corporation (b) 28,600 778,778
Genzyme Corporation (b) 44,040 1,840,872
Gilead Sciences, Inc. (b) 18,410 1,023,228
IDEC Pharmaceuticals Corporation (b) 56,000 1,904,000
Millennium Pharmaceuticals, Inc. (b) 130,610 2,054,495
--------------
7,857,486
Medical - Ethical Drugs 1.5%
Medicis Pharmaceutical Corporation Class A 40,800 2,313,360
Medical - Generic Drugs 0.8%
Watson Pharmaceuticals, Inc. (b) 27,200 1,098,064
Medical - Health Maintenance
Organizations 1.0%
Mid Atlantic Medical Services, Inc. (b) 29,000 1,516,700
Medical - Hospitals 1.2%
Community Health Systems, Inc. (b) 93,760 1,821,757
Medical - Products 3.4%
C.R. Bard, Inc. 26,500 1,889,715
Edwards Lifesciences Corporation (b) 23,300 748,862
INAMED Corporation (b) 20,700 1,111,383
Viasys Healthcare, Inc. (b) 4,000 82,800
Zimmer Holdings, Inc. (b) 26,900 1,211,845
--------------
5,044,605
Medical - Wholesale Drugs/Sundries 0.5%
AmerisourceBergen Corporation 11,570 802,380
Medical/Dental - Services 0.4%
Caremark Rx, Inc. (b) 20,500 526,440
Medical/Dental - Supplies 1.5%
Dentsply International, Inc. 53,400 2,184,060
Metal Ores - Gold/Silver 0.7%
Apex Silver Mines, Ltd. (b) 64,671 953,897
Mining - Gems 0.4%
Pan American Silver Corporation (b) 83,143 586,158
Oil & Gas - Drilling 2.5%
GlobalSantaFe Corporation 38,700 903,258
Nabors Industries, Ltd. (b) 26,440 1,045,702
Patterson Utility Energy, Inc. (b) 29,000 939,600
Transocean, Inc. (b) 35,800 786,526
--------------
3,675,086
Oil & Gas - Machinery/Equipment 1.7%
Grant Prideco, Inc. (b) 62,200 730,850
Weatherford International, Ltd. (b) 42,535 1,782,216
--------------
2,513,066
Oil & Gas - United States Exploration &
Production 1.2%
Pioneer Natural Resources Company (b) 30,470 795,267
XTO Energy, Inc. 47,500 955,225
--------------
1,750,492
Paper & Paper Products 0.9%
Domtar, Inc. (d) 116,090 1,282,795
Retail - Apparel/Shoe 5.8%
Abercrombie & Fitch Company Class A (b) 56,300 1,599,483
Coach, Inc. (b) 22,800 1,134,072
The Finish Line, Inc. Class A (b) 87,159 1,935,801
Gadzooks, Inc. (b) 118,893 675,312
Too, Inc. (b) 63,810 1,292,152
Urban Outfitters, Inc. (b) 50,700 1,820,130
--------------
8,456,950
Retail - Home Furnishings 0.5%
The Bombay Company, Inc. (b) 74,597 792,966
Retail - Miscellaneous/Diversified 1.2%
PETsMART, Inc. (b) 108,798 1,813,663
Retail - Restaurants 3.4%
O'Charley's, Inc. (b) 43,500 936,555
P.F. Chang's China Bistro, Inc. (b) 16,510 812,457
Panera Bread Company Class A (b) 59,120 2,364,800
Sonic Corporation (b) 35,600 905,308
--------------
5,019,120
Retail/Wholesale - Auto Parts 1.0%
CarMax, Inc. (b) 24,800 747,720
O'Reilly Automotive, Inc. (b) 22,200 741,258
--------------
1,488,978
Telecommunications - Equipment 2.9%
Adtran, Inc. (b) 14,950 766,786
Advanced Fibre Communications, Inc. (b) 69,840 1,136,297
Avaya, Inc. (b) 137,700 889,542
Corning, Inc. (b) 194,000 1,433,660
--------------
4,226,285
Transportation - Airline 1.4%
AirTran Holdings, Inc. (b) 156,900 1,642,743
Delta Air Lines, Inc. 26,400 387,552
--------------
2,030,295
Transportation - Truck 0.7%
Heartland Express, Inc. (b) 45,620 1,015,045
22
- -------------------------------------------------------------------------------
STRONG DISCOVERY FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Trucks & Parts - Heavy Duty 1.5%
Navistar International Corporation (b) 68,975 $ 2,250,654
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $132,265,859) 144,358,618
- -------------------------------------------------------------------------------
Short-Term Investments (a) 17.9%
Collateral Received for Securities
Lending (f) 9.3%
Money Market Funds 6.3%
Deutsche Daily Assets Fund -
Institutional Class 9,216,967 9,216,967
Repurchase Agreements 3.0%
Barclays Capital, Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase
proceeds $1,466,563); Collateralized by:
United States Government &
Agency Issues $ 1,466,508 1,466,508
Goldman, Sachs and Company (Dated
6/30/03), 1.22%, Due 7/01/03
(Repurchase proceeds $1,466,558);
Collateralized by: United States
Government & Agency Issues 1,466,508 1,466,508
Lehman Brothers Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase
proceeds $1,466,563); Collateralized by:
United States Government &
Agency Issues 1,466,508 1,466,508
--------------
4,399,524
--------------
Total Collateral Received for Securities
Lending 13,616,491
Repurchase Agreements 8.6%
ABN AMRO Inc. (Dated 6/30/03), 1.20%,
Due 7/01/03 (Repurchase proceeds
$10,600,353); Collateralized by: United
States Government & Agency Issues (c) 10,600,000 10,600,000
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds
$2,038,842); Collateralized by: United
States Government & Agency Issues (c) 2,038,800 2,038,800
--------------
Total Repurchase Agreements 12,638,800
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $26,255,291) 26,255,291
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $158,521,150) 116.4% 170,613,909
Other Assets and Liabilities, Net (16.4%) (24,003,235)
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 146,610,674
===============================================================================
STRONG ENDEAVOR FUND
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Common Stocks 99.1%
Auto/Truck - Original Equipment 1.5%
Eaton Corporation 950 $ 74,680
Banks - Money Center 4.1%
Citigroup, Inc. 4,800 205,440
Beverages - Soft Drinks 2.0%
The Coca-Cola Company 2,145 99,549
Commercial Services - Advertising 0.5%
Lamar Advertising Company (b) 640 22,534
Commercial Services - Schools 1.0%
Apollo Group, Inc. Class A (b) 400 24,704
Career Education Corporation (b) 390 26,684
--------------
51,388
Computer - Local Networks 2.8%
Cisco Systems, Inc. (b) 8,515 142,115
Computer - Manufacturers 1.5%
Dell, Inc. (b) 2,370 75,745
Computer - Services 0.4%
International Business Machines Corporation 260 21,450
Computer Software - Desktop 3.5%
Microsoft Corporation 6,780 173,636
Computer Software -
Education/Entertainment 1.1%
Electronic Arts, Inc. (b) 770 56,972
Computer Software - Enterprise 4.9%
SAP AG Sponsored ADR 2,195 64,138
Siebel Systems, Inc. (b) 3,160 30,146
VERITAS Software Corporation (b) 5,300 151,951
--------------
246,235
Computer Software - Security 0.9%
Symantec Corporation (b) 1,050 46,053
Diversified Operations 10.2%
AOL Time Warner, Inc. (b) 16,165 260,095
Tyco International, Ltd. 13,175 250,061
--------------
510,156
Electronics - Semiconductor Equipment 0.7%
Applied Materials, Inc. (b) 2,250 35,685
Electronics - Semiconductor
Manufacturing 8.1%
Intel Corporation 10,520 218,648
Linear Technology Corporation 720 23,191
Maxim Integrated Products, Inc. 2,290 78,295
Microchip Technology, Inc. 2,520 62,068
Micron Technology, Inc. (b) 1,760 20,469
--------------
402,671
Finance - Consumer/Commercial Loans 1.0%
SLM Corporation 1,215 47,592
Finance - Investment Brokers 1.0%
Lehman Brothers Holdings, Inc. 760 50,525
Finance - Publicly Traded Investment Funds -
Equity (Non 40 Act) 2.1%
Biotech Holders Trust 230 28,348
Pharmaceutical Holders Trust 930 75,237
--------------
103,585
23
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- -------------------------------------------------------------------------------
STRONG ENDEAVOR FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Financial Services - Miscellaneous 3.1%
American Express Company 530 $ 22,159
First Data Corporation 3,225 133,644
--------------
155,803
Insurance - Diversified 2.1%
American International Group, Inc. 1,900 104,842
Internet - E*Commerce 2.3%
eBay, Inc. (b) 1,080 112,514
Internet - Internet Service
Provider/Content 2.7%
Yahoo! Inc. (b) 4,100 134,316
Leisure - Services 5.4%
The Walt Disney Company 3,465 68,434
Royal Caribbean Cruises, Ltd. 8,760 202,882
--------------
271,316
Media - Cable TV 0.7%
EchoStar Communications Corporation
Class A (b) 940 32,543
Media - Newspapers 2.1%
The E.W. Scripps Company Class A 1,185 105,133
Media - Radio/TV 2.5%
Univision Communications, Inc. Class A (b) 2,000 60,800
Viacom, Inc. Class B (b) 1,440 62,870
--------------
123,670
Medical - Biomedical/Genetics 3.7%
Amgen, Inc. (b) 1,350 89,694
Genzyme Corporation (b) 510 21,318
Gilead Sciences, Inc. (b) 440 24,455
IDEC Pharmaceuticals Corporation (b) 1,420 48,280
--------------
183,747
Medical - Drug/Diversified 1.3%
Johnson & Johnson 1,300 67,210
Medical - Ethical Drugs 7.2%
Medicis Pharmaceutical Corporation Class A 1,170 66,339
Merck & Company, Inc. 1,690 102,329
Pfizer, Inc. 5,544 189,328
--------------
357,996
Medical - Generic Drugs 1.3%
Teva Pharmaceutical Industries, Ltd. ADR 1,100 62,623
Medical - Health Maintenance
Organizations 1.1%
Anthem, Inc. (b) 730 56,320
Medical - Products 2.2%
Boston Scientific Corporation (b) 610 37,271
Medtronic, Inc. 1,560 74,833
--------------
112,104
Oil & Gas - Drilling 0.8%
Transocean, Inc. (b) 1,810 39,766
Oil & Gas - Field Services 0.5%
Schlumberger, Ltd. 505 24,023
Retail - Home Furnishings 0.3%
Bed Bath & Beyond, Inc. (b) 350 13,583
Retail - Major Discount Chains 1.2%
Target Corporation 1,535 58,084
Retail - Restaurants 1.8%
McDonald's Corporation 2,390 52,723
Panera Bread Company Class A (b) 950 38,000
--------------
90,723
Retail/Wholesale - Auto Parts 0.9%
AutoZone, Inc. (b) 590 44,822
Retail/Wholesale - Building Products 2.2%
The Home Depot, Inc. 1,630 53,986
Lowe's Companies, Inc. 1,250 53,688
--------------
107,674
Telecommunications - Equipment 5.4%
Alcatel SA ADR (b) 10,895 97,510
Corning, Inc. (b) 13,180 97,400
Nokia Corporation Sponsored ADR 4,385 72,046
--------------
266,956
Trucks & Parts - Heavy Duty 1.0%
Navistar International Corporation (b) 1,460 47,640
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $4,487,185) 4,939,419
- -------------------------------------------------------------------------------
Short-Term Investments (a) 1.3%
Repurchase Agreements
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds $62,301);
Collateralized by: United States Government
& Agency Issues (c) $ 62,300 62,300
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $62,300) 62,300
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $4,549,485) 100.4% 5,001,719
Other Assets and Liabilities, Net (0.4%) (17,492)
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 4,984,227
===============================================================================
STRONG LARGE CAP GROWTH FUND
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Common Stocks 99.7%
Aerospace - Defense 0.5%
Lockheed Martin Corporation 65,000 $ 3,092,050
Banks - Money Center 3.1%
Bank of America Corporation 70,000 5,532,100
Citigroup, Inc. 240,000 10,272,000
J.P. Morgan Chase & Company 130,000 4,443,400
--------------
20,247,500
Beverages - Alcoholic 0.4%
Anheuser-Busch Companies, Inc. 50,000 2,552,500
Building - Construction
Products/Miscellaneous 0.1%
Masco Corporation 30,000 715,500
Chemicals - Basic 0.7%
The Dow Chemical Company 40,000 1,238,400
PPG Industries, Inc. 65,000 3,298,100
--------------
4,536,500
24
- -------------------------------------------------------------------------------
STRONG LARGE CAP GROWTH FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Chemicals - Specialty 0.1%
Praxair, Inc. 10,000 $ 601,000
Commercial Services - Advertising 1.3%
Omnicom Group, Inc. 115,000 8,245,500
Commercial Services - Miscellaneous 0.3%
Paychex, Inc. 75,000 2,198,250
Commercial Services - Schools 0.6%
Apollo Group, Inc. Class A (b) 65,000 4,014,400
Computer - Local Networks 4.8%
Cisco Systems, Inc. (b) 1,130,000 18,859,700
Juniper Networks, Inc. (b) 730,000 9,030,100
QLogic Corporation (b) 70,000 3,383,100
--------------
31,272,900
Computer - Manufacturers 2.6%
Dell, Inc. (b) 435,000 13,902,600
Sun Microsystems, Inc. (b) 600,000 2,760,000
--------------
16,662,600
Computer - Memory Devices 1.8%
EMC Corporation (b) 895,000 9,370,650
Network Appliance, Inc. (b) 140,000 2,269,400
--------------
11,640,050
Computer - Services 0.5%
International Business Machines Corporation 40,000 3,300,000
Computer Software - Desktop 3.0%
Microsoft Corporation 750,000 19,207,500
Computer Software - Enterprise 3.1%
Oracle Systems Corporation (b) 550,000 6,611,000
SAP AG Sponsored ADR 85,000 2,483,700
Siebel Systems, Inc. (b) 665,000 6,344,100
VERITAS Software Corporation (b) 170,000 4,873,900
--------------
20,312,700
Cosmetics - Personal Care 0.2%
Colgate Palmolive Company 25,000 1,448,750
Diversified Operations 4.0%
AOL Time Warner, Inc. (b) 415,000 6,677,350
General Electric Company 525,000 15,057,000
3M Co. 20,000 2,579,600
United Technologies Corporation 25,000 1,770,750
--------------
26,084,700
Electronics - Semiconductor
Equipment 1.8%
Applied Materials, Inc. (b) 340,000 5,392,400
KLA-Tencor Corporation (b) 95,000 4,416,550
Novellus Systems, Inc. (b) 60,000 2,197,260
--------------
12,006,210
Electronics - Semiconductor
Manufacturing 8.4%
Analog Devices, Inc. (b) 285,000 9,923,700
Applied Micro Circuits Corporation (b) 200,000 1,210,000
Broadcom Corporation Class A (b) 370,000 9,216,700
Intel Corporation 910,000 18,913,440
Micron Technology, Inc. (b) 270,000 3,140,100
PMC-Sierra, Inc. (b) 140,000 1,642,200
Taiwan Semiconductor Manufacturing
Company, Ltd. Sponsored ADR (b) 550,000 5,544,000
Texas Instruments, Inc. 290,000 5,104,000
--------------
54,694,140
Finance - Consumer/Commercial Loans 1.4%
Capital One Financial Corporation 110,000 5,409,800
SLM Corporation 90,000 3,525,300
--------------
8,935,100
Finance - Investment Brokers 1.4%
The Goldman Sachs Group, Inc. 50,000 4,187,500
Lehman Brothers Holdings, Inc. 45,000 2,991,600
Merrill Lynch & Company, Inc. 35,000 1,633,800
--------------
8,812,900
Financial Services - Miscellaneous 2.4%
American Express Company 190,000 7,943,900
First Data Corporation 115,000 4,765,600
Fiserv, Inc. (b) 75,000 2,670,750
--------------
15,380,250
Food - Miscellaneous Preparation 0.5%
PepsiCo, Inc. 75,000 3,337,500
Insurance - Diversified 0.5%
John Hancock Financial Services, Inc. 55,000 1,690,150
Principal Financial Group, Inc. 50,000 1,612,500
--------------
3,302,650
Internet - E*Commerce 2.8%
Amazon.com, Inc. (b) 120,000 4,378,800
eBay, Inc. (b) 55,000 5,729,900
InterActiveCorp (b) 205,000 8,111,850
--------------
18,220,550
Internet - Internet Service
Provider/Content 0.8%
Yahoo! Inc. (b) 150,000 4,914,000
Leisure - Gaming 0.6%
International Game Technology 25,000 2,558,250
Wynn Resorts, Ltd. (b) 85,000 1,503,650
--------------
4,061,900
Leisure - Hotels & Motels 0.4%
Starwood Hotels & Resorts Worldwide, Inc. 90,000 2,573,100
Leisure - Products 0.3%
Harley-Davidson, Inc. 45,000 1,793,700
Machinery - General Industrial 0.4%
Ingersoll-Rand Company Class A 50,000 2,366,000
Media - Cable TV 1.3%
EchoStar Communications Corporation
Class A (b) 195,000 6,750,900
General Motors Corporation Class H (b) 140,000 1,793,400
--------------
8,544,300
Media - Radio/TV 2.2%
Clear Channel Communications, Inc. (b) 95,000 4,027,050
Univision Communications, Inc. Class A (b) 80,000 2,432,000
Viacom, Inc. Class B (b) 175,000 7,640,500
--------------
14,099,550
Medical - Biomedical/Genetics 4.6%
Amgen, Inc. (b) 150,000 9,966,000
Genentech, Inc. (b) 30,000 2,163,600
Genzyme Corporation (b) 185,000 7,733,000
Gilead Sciences, Inc. (b) 155,000 8,614,900
Medimmune, Inc. (b) 45,000 1,636,650
--------------
30,114,150
25
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- -------------------------------------------------------------------------------
STRONG LARGE CAP GROWTH FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Medical - Drug/Diversified 1.8%
Abbott Laboratories 115,000 $ 5,032,400
Johnson & Johnson 130,000 6,721,000
--------------
11,753,400
Medical - Ethical Drugs 8.3%
Allergan, Inc. 20,000 1,542,000
Forest Laboratories, Inc. (b) 135,000 7,391,250
Eli Lilly & Company 20,000 1,379,400
Merck & Company, Inc. 100,000 6,055,000
Pfizer, Inc. 970,000 33,125,500
Wyeth 100,000 4,555,000
--------------
54,048,150
Medical - Generic Drugs 0.8%
Teva Pharmaceutical Industries, Ltd. ADR 90,000 5,123,700
Medical - Health Maintenance
Organizations 0.8%
Aetna, Inc. 90,000 5,418,000
Medical - Products 3.0%
Alcon, Inc. 35,000 1,599,500
Boston Scientific Corporation (b) 210,000 12,831,000
Medtronic, Inc. 105,000 5,036,850
--------------
19,467,350
Medical - Wholesale Drugs/Sundries 0.9%
AmerisourceBergen Corporation 40,000 2,774,000
Cardinal Health, Inc. 50,000 3,215,000
--------------
5,989,000
Medical/Dental - Services 0.4%
Quest Diagnostics, Inc. (b) 40,000 2,552,000
Metal Ores - Gold/Silver 0.5%
Newmont Mining Corporation Holding
Company 90,000 2,921,400
Metal Ores - Miscellaneous 0.5%
Alcan, Inc. 30,000 938,700
Alcoa, Inc. 80,000 2,040,000
--------------
2,978,700
Metal Products - Fasteners 0.2%
Illinois Tool Works, Inc. 20,000 1,317,000
Oil & Gas - Drilling 0.7%
ENSCO International, Inc. 80,000 2,152,000
Nabors Industries, Ltd. (b) 65,000 2,570,750
--------------
4,722,750
Oil & Gas - Machinery/Equipment 0.7%
Smith International, Inc. (b) 65,000 2,388,100
Weatherford International, Ltd. (b) 55,000 2,304,500
--------------
4,692,600
Oil & Gas - United States Exploration &
Production 0.8%
Apache Corporation 25,000 1,626,500
Burlington Resources, Inc. 35,000 1,892,450
Occidental Petroleum Corporation 50,000 1,677,500
--------------
5,196,450
Retail - Consumer Electronics 0.2%
Best Buy Company, Inc. (b) 30,000 1,317,600
Retail - Department Stores 1.0%
Kohl's Corporation (b) 115,000 5,908,700
Retail - Discount & Variety 0.7%
Dollar Tree Stores, Inc. (b) 145,000 4,600,850
Retail - Drug Stores 0.2%
Walgreen Company 53,000 1,595,300
Retail - Home Furnishings 0.4%
Bed Bath & Beyond, Inc. (b) 60,000 2,328,600
Retail - Major Discount Chains 1.9%
Family Dollar Stores, Inc. 100,000 3,815,000
Target Corporation 165,000 6,243,600
Wal-Mart Stores, Inc. 40,000 2,146,800
--------------
12,205,400
Retail - Restaurants 0.2%
Starbucks Corporation (b) 65,000 1,593,800
Retail/Wholesale - Building Products 3.0%
The Home Depot, Inc. 485,000 16,063,200
Lowe's Companies, Inc. 75,000 3,221,250
--------------
19,284,450
Soap & Cleaning Preparations 1.8%
The Procter & Gamble Company 130,000 11,593,400
Steel - Producers 1.0%
Nucor Corporation 140,000 6,839,000
Telecommunications - Cellular 3.0%
AT&T Wireless Services, Inc. (b) 385,000 3,160,850
Nextel Communications, Inc. Class A (b) 415,000 7,503,200
Sprint Corporation - PCS Group (b) 175,000 1,006,250
Vodafone Group PLC Sponsored ADR 375,000 7,368,750
--------------
19,039,050
Telecommunications - Equipment 8.2%
Alcatel SA ADR (b) 220,000 1,969,000
Corning, Inc. (b) 2,510,000 18,548,900
JDS Uniphase Corporation (b) 3,010,000 10,565,100
Lucent Technologies, Inc. (b) 2,000,000 4,060,000
Nokia Corporation Sponsored ADR 465,000 7,639,950
Nortel Networks Corporation (b) 3,330,000 8,991,000
UTStarcom, Inc. (b) 45,000 1,600,650
--------------
53,374,600
Transportation - Air Freight 0.3%
FedEx Corporation 35,000 2,171,050
Trucks & Parts - Heavy Duty 0.2%
PACCAR, Inc. 20,000 1,351,200
Utility - Electric Power 1.3%
American Electric Power Company, Inc. 145,000 4,325,350
Calpine Corporation (b) 300,000 1,980,000
PPL Corporation 25,000 1,075,000
The Southern Company 35,000 1,090,600
--------------
8,470,950
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $551,142,117) 647,142,850
- -------------------------------------------------------------------------------
Short-Term Investments (a) 6.4%
Collateral Received for Securities
Lending (f) 4.4%
Money Market Funds 3.0%
Deutsche Daily Assets Fund - Institutional
Class 19,292,015 19,292,015
26
- -------------------------------------------------------------------------------
STRONG LARGE CAP GROWTH FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Repurchase Agreements 1.4%
Barclays Capital, Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase proceeds
$3,069,661); Collateralized by: United
States Government & Agency Issues $ 3,069,545 $ 3,069,545
Goldman, Sachs and Company (Dated
6/30/03), 1.22%, Due 7/01/03 (Repurchase
proceeds $3,069,649); Collateralized by:
United States Government & Agency Issues 3,069,545 3,069,545
Lehman Brothers Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase proceeds
$3,069,661); Collateralized by: United
States Government & Agency Issues 3,069,545 3,069,545
--------------
9,208,635
--------------
Total Collateral Received for Securities
Lending 28,500,650
Repurchase Agreements 1.9%
ABN AMRO Inc. (Dated 6/30/03), 1.20%,
Due 7/01/03 (Repurchase proceeds
$8,200,273); Collateralized by: United
States Government & Agency Issues (c) 8,200,000 8,200,000
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds
$3,990,583); Collateralized by: United
States Government & Agency Issues (c) 3,990,500 3,990,500
--------------
Total Repurchase Agreements 12,190,500
United States Government Issues 0.1%
United States Treasury Bills,
Due 7/17/03 thru 8/14/03 (e) 1,050,000 1,049,379
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $41,740,271) 41,740,529
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $592,882,388) 106.1% 688,883,379
Other Assets & Liabilities, Net (6.1%) (39,719,303)
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 649,164,076
===============================================================================
FUTURES
- -------------------------------------------------------------------------------
Underlying Unrealized
Expiration Face Amount Appreciation/
Date at Value (Depreciation)
- -------------------------------------------------------------------------------
Purchased:
55 Nasdaq 100 Futures 9/03 $ 6,624,750 $ (185,280)
WRITTEN OPTIONS ACTIVITY
- -------------------------------------------------------------------------------
Contracts Premiums
- -------------------------------------------------------------------------------
Options outstanding at beginning of period -- $ --
Options written during the period 900 798,276
Options closed -- --
Options expired (900) (798,276)
Options exercised -- --
------------ --------------
Options outstanding at end of period -- $ --
============ ==============
STRONG LARGE COMPANY GROWTH FUND
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Common Stocks 92.6%
Banks - Money Center 4.2%
The Bank of New York Company, Inc. 23,500 $ 675,625
Citigroup, Inc. 17,400 744,720
--------------
1,420,345
Beverages - Alcoholic 1.9%
Anheuser-Busch Companies, Inc. 12,500 638,125
Computer - Local Networks 2.6%
Cisco Systems, Inc. (b) 51,700 862,873
Computer - Manufacturers 1.5%
Dell, Inc. (b) 15,500 495,380
Computer - Services 3.4%
Amdocs, Ltd. (b) 26,500 636,000
International Business Machines Corporation 6,000 495,000
--------------
1,131,000
Computer Software - Desktop 3.4%
Microsoft Corporation 44,500 1,139,645
Computer Software - Enterprise 1.9%
Oracle Systems Corporation (b) 52,900 635,858
Cosmetics - Personal Care 1.9%
Colgate Palmolive Company 11,200 649,040
Diversified Operations 4.9%
General Electric Company 57,000 1,634,760
Electronics - Measuring Instruments 1.6%
Cognex Corporation (b) 24,400 545,340
Electronics - Military Systems 1.5%
L-3 Communications Corporation (b) 11,300 491,437
Electronics - Parts Distributors 1.6%
W.W. Grainger, Inc. 11,600 542,416
Electronics - Semiconductor Equipment 1.6%
Novellus Systems, Inc. (b) 15,000 549,315
Electronics - Semiconductor
Manufacturing 5.2%
Analog Devices, Inc. (b) 14,100 490,962
Intel Corporation 28,700 596,501
Linear Technology Corporation 20,800 669,968
--------------
1,757,431
Finance - Mortgage & Related Services 1.7%
Fannie Mae 8,600 579,984
Finance - Publicly Traded Investment
Funds - Equity 2.3%
iShares Goldman Sachs Networking Fund (b) 23,000 445,740
iShares Russell 1000 Growth Index Fund 8,100 332,505
--------------
778,245
Finance - Publicly Traded Investment
Funds-Equity (Non 40 Act) 3.0%
Pharmaceutical Holders Trust 12,300 995,070
Financial Services - Miscellaneous 1.7%
American Express Company 13,300 556,073
27
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- -------------------------------------------------------------------------------
STRONG LARGE COMPANY GROWTH FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Food - Confectionery 1.1%
Hershey Foods Corporation 5,400 $ 376,164
Food - Miscellaneous Preparation 3.0%
PepsiCo, Inc. 22,500 1,001,250
Insurance - Diversified 2.1%
American International Group, Inc. 12,800 706,304
Internet - E*Commerce 4.0%
eBay, Inc. (b) 5,500 572,990
InterActiveCorp (b) 19,000 751,830
--------------
1,324,820
Media - Cable TV 0.9%
Comcast Corporation Class A (b) 9,500 286,710
Media - Radio/TV 2.0%
Viacom, Inc. Class B (b) 15,500 676,730
Medical - Biomedical/Genetics 3.0%
Amgen, Inc. (b) 14,900 989,956
Medical - Drug/Diversified 1.9%
Johnson & Johnson 12,500 646,250
Medical - Ethical Drugs 8.4%
Pfizer, Inc. 46,180 1,577,047
Schering-Plough Corporation 22,500 418,500
Wyeth 18,300 833,565
--------------
2,829,112
Medical - Generic Drugs 4.6%
Barr Laboratories, Inc. (b) 10,500 687,750
Teva Pharmaceutical Industries, Ltd. ADR 14,700 836,871
--------------
1,524,621
Medical - Products 2.6%
Medtronic, Inc. 10,100 484,497
St. Jude Medical, Inc. (b) 7,000 402,500
--------------
886,997
Metal Ores - Gold/Silver 0.9%
Newmont Mining Corporation Holding
Company 9,400 305,124
Oil & Gas - United States Exploration &
Production 1.2%
Devon Energy Corporation 7,417 396,068
Retail - Major Discount Chains 2.9%
Wal-Mart Stores, Inc. 17,800 955,326
Retail/Wholesale - Building Products 1.6%
Lowe's Companies, Inc. 12,500 536,875
Retail/Wholesale - Jewelry 2.9%
Tiffany & Company 29,600 967,328
Shoes & Related Apparel 2.0%
NIKE, Inc. Class B 12,800 684,672
Soap & Cleaning Preparations 1.6%
The Procter & Gamble Company 6,100 543,998
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $28,677,660) 31,040,642
- -------------------------------------------------------------------------------
Convertible Notes 3.0%
Media - Radio/TV 2.0%
Sirius Satellite Radio, Inc.
Notes, 3.50%, Due 6/01/08 464,000 668,160
Medical - Instruments 1.0%
Nektar Therapeutics
Notes, 3.00%, Due 6/30/10 (d) 320,000 320,800
- -------------------------------------------------------------------------------
Total Convertible Notes (Cost $813,025) 988,960
- -------------------------------------------------------------------------------
Convertible Preferred Stocks 3.5%
Finance - Savings & Loan 1.9%
Washington Mutual, Inc. 5.375% 10,900 645,825
Medical - Health Maintenance
Organizations 1.6%
Anthem, Inc. 6.00% 5,600 523,600
- -------------------------------------------------------------------------------
Total Convertible Preferred Stocks (Cost $944,506) 1,169,425
- -------------------------------------------------------------------------------
Short-Term Investments (a) 5.9%
Repurchase Agreements
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds
$1,992,442); Collateralized by: United
States Government & Agency Issues (c) $ 1,992,400 1,992,400
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $1,992,400) 1,992,400
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $32,427,591) 105.0% 35,191,427
Other Assets and Liabilities, Net (5.0%) (1,673,085)
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 33,518,342
===============================================================================
- -------------------------------------------------------------------------------
STRONG U.S. EMERGING GROWTH FUND
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Common Stocks 98.2%
Commercial Services - Advertising 1.0%
aQuantive, Inc. (b) 72,005 $ 756,052
Commercial Services - Miscellaneous 3.1%
Corporate Executive Board Company (b) 38,635 1,565,877
WFS Financial, Inc. (b) 21,825 731,356
--------------
2,297,233
Commercial Services - Schools 4.4%
Career Education Corporation (b) 17,915 1,225,744
Corinthian Colleges, Inc. (b) 42,125 2,046,011
--------------
3,271,755
Computer - Graphics 1.3%
Magma Design Automation (b) 57,880 992,642
Computer - Local Networks 5.4%
Extreme Networks, Inc. (b) 120,020 636,106
Foundry Networks, Inc. (b) 100,415 1,445,976
QLogic Corporation (b) 39,710 1,919,184
--------------
4,001,266
Computer - Services 1.3%
MTC Technologies, Inc. (b) 41,190 966,317
28
- -------------------------------------------------------------------------------
STRONG U.S. EMERGING GROWTH FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Computer Software - Enterprise 3.1%
SERENA Software, Inc. (b) 55,850 $ 1,166,148
Trident Microsystems, Inc. (b) 122,810 1,117,571
--------------
2,283,719
Computer Software - Medical 1.6%
eResearch Technology, Inc. (b) 51,620 1,153,191
Computer Software - Security 2.2%
Netscreen Technologies, Inc. (b) 70,805 1,596,653
Electronics - Semiconductor Equipment 2.7%
Cabot Microelectronics Corporation (b) 39,000 1,968,330
Electronics - Semiconductor
Manufacturing 11.1%
Integrated Circuit Systems, Inc. (b) 63,815 2,005,705
OmniVision Technologies, Inc. (b) 78,125 2,437,500
Power Integrations, Inc. (b) 36,235 881,235
Silicon Laboratories, Inc. (b) 40,045 1,066,799
Zoran Corporation (b) 95,890 1,842,047
--------------
8,233,286
Finance - Consumer/Commercial Loans 0.9%
Portfolio Recovery Associates, Inc. (b) 20,855 642,543
Financial Services - Miscellaneous 2.5%
Investors Financial Services Corporation 62,970 1,826,760
Insurance - Property/Casualty/Title 0.9%
ProAssurance Corporation (b) 24,890 671,781
Internet - E*Commerce 5.6%
Getty Images, Inc. (b) 19,435 802,665
Netflix, Inc. (b) 66,130 1,689,622
University of Phoenix Online (b) 32,930 1,669,551
--------------
4,161,838
Internet - Internet Service
Provider/Content 2.0%
j2 Global Communications, Inc. (b) 31,780 1,461,880
Internet - Software 1.0%
United Online, Inc. (b) 29,330 743,222
Leisure - Gaming 1.0%
Shuffle Master, Inc. (b) 26,365 769,594
Leisure - Photo Equipment/Related 1.5%
Lexar Media, Inc. (b) 117,995 1,116,233
Leisure - Toys/Games/Hobby 4.1%
Leapfrog Enterprises, Inc. Class A (b) 68,125 2,167,056
Marvel Enterprises, Inc. (b) 47,425 905,818
--------------
3,072,874
Medical - Biomedical/Genetics 1.0%
CV Therapeutics, Inc. (b) 24,900 738,534
Medical - Generic Drugs 3.6%
American Pharmaceutical Partners, Inc. (b) 40,485 1,372,441
Andrx Group (b) 63,530 1,264,247
--------------
2,636,688
Medical - Instruments 0.8%
Biolase Technology, Inc. (b) 54,500 584,785
Medical - Nursing Homes 6.1%
Odyssey Healthcare, Inc. (b) 77,195 2,856,215
VistaCare, Inc. Class A (b) 69,335 1,685,534
--------------
4,541,749
Medical - Products 5.8%
Advanced Neuromodulation Systems, Inc. (b) 14,550 753,253
Cyberonics, Inc. (b) 29,470 633,900
STAAR Surgical Company (b) 81,755 948,358
SurModics, Inc. (b) 12,750 388,875
Wilson Greatbatch Technologies, Inc. (b) 39,775 1,435,878
Zoll Medical Corporation (b) 4,700 157,732
--------------
4,317,996
Medical/Dental - Services 1.0%
Enzo Biochem, Inc. (b) 33,988 731,422
Oil & Gas - Drilling 1.0%
Unit Corporation (b) 36,520 763,633
Oil & Gas - United States Exploration &
Production 3.3%
Evergreen Resources, Inc. (b) 26,660 1,447,905
Spinnaker Exploration Company (b) 39,445 1,033,459
--------------
2,481,364
Retail - Apparel/Shoe 3.5%
Chicos FAS, Inc. (b) 52,230 1,099,441
Hot Topic, Inc. (b) 54,625 1,469,959
--------------
2,569,400
Retail - Discount & Variety 1.5%
Fred's, Inc. 30,030 1,116,515
Retail - Mail Order & Direct 0.9%
J. Jill Group, Inc. (b) 41,010 690,608
Retail - Restaurants 5.6%
The Cheesecake Factory, Inc. (b) 32,055 1,150,454
P.F. Chang's China Bistro, Inc. (b) 43,850 2,157,859
Panera Bread Company Class A (b) 21,435 857,400
--------------
4,165,713
Transportation - Services 1.9%
C.H. Robinson Worldwide, Inc. 39,325 1,398,397
Transportation - Truck 5.5%
Heartland Express, Inc. (b) 30,475 678,069
J.B. Hunt Transport Services, Inc. (b) 41,810 1,578,328
Knight Transportation, Inc. (b) 71,970 1,792,053
--------------
4,048,450
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $53,197,600) 72,772,423
- -------------------------------------------------------------------------------
Short-Term Investments (a) 2.1%
Repurchase Agreements
ABN AMRO Inc. (Dated 6/30/03), 1.20%,
Due 7/01/03 (Repurchase proceeds
$100,003); Collateralized by: United States
Government & Agency Issues (c) $ 100,000 100,000
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds
$1,443,330); Collateralized by: United
States Government & Agency Issues (c) 1,443,300 1,443,300
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $1,543,300) 1,543,300
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $54,740,900) 100.3% 74,315,723
Other Assets & Liabilities, Net (0.3%) (233,258)
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 74,082,465
===============================================================================
29
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- -------------------------------------------------------------------------------
STRONG ENTERPRISE FUND
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Common Stocks 99.1%
Auto/Truck - Original Equipment 1.2%
Eaton Corporation 40,100 $ 3,152,261
Banks - Super Regional 1.0%
SouthTrust Corporation 91,100 2,477,920
Chemicals - Fertilizers 0.7%
Agrium, Inc. 171,900 1,884,024
Commercial - Leasing Companies 0.6%
Ryder Systems, Inc. 58,700 1,503,894
Commercial Services - Advertising 1.2%
Lamar Advertising Company (b) 89,390 3,147,422
Commercial Services - Miscellaneous 0.3%
Corporate Executive Board Company (b) 22,600 915,978
Commercial Services - Schools 2.0%
Apollo Group, Inc. Class A (b) 22,730 1,403,805
Career Education Corporation (b) 53,800 3,680,996
--------------
5,084,801
Commercial Services - Staffing 1.5%
Monster Worldwide, Inc. (b) 193,990 3,827,423
Computer - Integrated Systems 0.5%
Symbol Technologies, Inc. 93,100 1,211,231
Computer - Local Networks 1.0%
Juniper Networks, Inc. (b) 198,200 2,451,734
Computer Software - Desktop 0.8%
Adobe Systems, Inc. 64,790 2,077,815
Computer Software -
Education/Entertainment 1.4%
Electronic Arts, Inc. (b) 47,056 3,481,673
Computer Software - Enterprise 3.6%
Mercury Interactive Corporation (b) 86,890 3,354,823
Siebel Systems, Inc. (b) 182,300 1,739,142
VERITAS Software Corporation (b) 147,810 4,237,713
--------------
9,331,678
Computer Software - Financial 0.5%
Sungard Data Systems, Inc. (b) 51,510 1,334,624
Computer Software - Security 1.1%
Symantec Corporation (b) 65,650 2,879,409
Electronics - Semiconductor
Equipment 2.3%
KLA-Tencor Corporation (b) 103,680 4,820,083
Novellus Systems, Inc. (b) 31,810 1,164,914
--------------
5,984,997
Electronics - Semiconductor
Manufacturing 6.6%
Altera Corporation (b) 140,600 2,305,840
Applied Micro Circuits Corporation (b) 298,400 1,805,320
Intersil Holding Corporation Class A (b) 115,300 3,068,133
Maxim Integrated Products, Inc. 82,045 2,805,118
Microchip Technology, Inc. 79,875 1,967,321
Micron Technology, Inc. (b) 120,000 1,395,600
Semtech Corporation (b) 134,820 1,919,837
Xilinx, Inc. (b) 71,160 1,801,060
--------------
17,068,229
Finance - Consumer/Commercial Loans 0.7%
Providian Financial Corporation (b) 188,600 1,746,436
Finance - Equity REIT 0.3%
Windrose Medical Properties Trust 62,300 669,725
Finance - Investment Brokers 1.8%
Legg Mason, Inc. 23,795 1,545,485
Lehman Brothers Holdings, Inc. 48,195 3,204,004
--------------
4,749,489
Finance - Investment Management 0.7%
SEI Investments Company 57,915 1,853,280
Finance - Publicly Traded Investment
Funds-Equity (Non 40 Act) 1.1%
Internet HOLDRs Trust 75,100 2,911,627
Financial Services - Miscellaneous 0.8%
Investors Financial Services Corporation 74,400 2,158,344
Household - Audio/Video 1.9%
Harman International Industries, Inc. 60,230 4,766,602
Household - Office Furniture 0.2%
Furniture Brands International, Inc. (b) 24,400 636,840
Internet - E*Commerce 2.0%
InterActiveCorp (b) 70,090 2,773,461
Priceline.com, Inc. (b) 109,771 2,450,089
--------------
5,223,550
Internet - Internet Service
Provider/Content 1.6%
Yahoo! Inc. (b) 123,728 4,053,329
Internet - Software 0.7%
BEA Systems, Inc. (b) 164,690 1,788,533
Leisure - Gaming 0.7%
Harrah's Entertainment, Inc. (b) 46,020 1,851,845
Leisure - Hotels & Motels 1.7%
Hilton Hotels Corporation 137,895 1,763,677
Starwood Hotels & Resorts Worldwide, Inc. 89,200 2,550,228
--------------
4,313,905
Leisure - Services 2.7%
Royal Caribbean Cruises, Ltd. 299,300 6,931,788
Leisure - Toys/Games/Hobby 1.1%
Leapfrog Enterprises, Inc. Class A (b) 88,600 2,818,366
Machinery - Construction/Mining 0.6%
Terex Corporation (b) 78,100 1,524,512
Media - Cable TV 0.9%
EchoStar Communications Corporation
Class A (b) 68,710 2,378,740
Media - Newspapers 2.3%
The E.W. Scripps Company Class A 66,385 5,889,677
30
- -------------------------------------------------------------------------------
STRONG ENTERPRISE FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Media - Radio/TV 5.5%
Cox Radio, Inc. Class A (b) 54,900 $ 1,268,739
Emmis Broadcasting Corporation Class A (b) 252,995 5,806,235
LIN TV Corporation (b) 108,490 2,554,939
Univision Communications, Inc. Class A (b) 106,870 3,248,848
Westwood One, Inc. (b) 38,390 1,302,573
--------------
14,181,334
Medical - Biomedical/Genetics 6.2%
Amylin Pharmaceuticals, Inc. (b) 38,400 840,576
Digene Corporation (b) 50,300 1,369,669
Genzyme Corporation (b) 91,075 3,806,935
Gilead Sciences, Inc. (b) 42,526 2,363,595
IDEC Pharmaceuticals Corporation (b) 113,600 3,862,400
Millennium Pharmaceuticals, Inc. (b) 243,200 3,825,536
--------------
16,068,711
Medical - Ethical Drugs 1.6%
Medicis Pharmaceutical Corporation Class A 72,500 4,110,750
Medical - Generic Drugs 1.1%
Teva Pharmaceutical Industries, Ltd. ADR 50,050 2,849,347
Medical - Health Maintenance
Organizations 1.6%
Anthem, Inc. (b) 53,465 4,124,825
Medical - Hospitals 1.3%
Community Health Systems, Inc. (b) 169,270 3,288,916
Medical - Products 3.1%
C.R. Bard, Inc. 37,600 2,681,256
Edwards Lifesciences Corporation (b) 41,300 1,327,382
INAMED Corporation (b) 31,000 1,664,390
Viasys Healthcare, Inc. (b) 7,300 151,110
Zimmer Holdings, Inc. (b) 47,765 2,151,813
--------------
7,975,951
Medical - Wholesale Drugs/Sundries 0.6%
AmerisourceBergen Corporation 20,530 1,423,756
Medical/Dental - Services 0.6%
Caremark Rx, Inc. (b) 59,510 1,528,217
Metal Ores - Gold/Silver 1.0%
Newmont Mining Corporation Holding
Company 82,230 2,669,186
Oil & Gas - Drilling 2.6%
Nabors Industries, Ltd. (b) 74,105 2,930,853
Patterson Utility Energy, Inc. (b) 36,800 1,192,320
Pride International, Inc. (b) 63,590 1,196,764
Transocean, Inc. (b) 63,600 1,397,292
--------------
6,717,229
Oil & Gas - Field Services 0.6%
BJ Services Company (b) 39,330 1,469,369
Oil & Gas - Machinery/Equipment 1.6%
Grant Prideco, Inc. (b) 108,415 1,273,876
Weatherford International, Ltd. (b) 67,455 2,826,365
--------------
4,100,241
Oil & Gas - United States Exploration &
Production 1.3%
Pioneer Natural Resources Company (b) 48,200 1,258,020
XTO Energy, Inc. 107,640 2,164,640
--------------
3,422,660
Paper & Paper Products 0.9%
Domtar, Inc. (d) 204,590 2,260,720
Retail - Apparel/Shoe 5.0%
Abercrombie & Fitch Company Class A (b) 98,900 2,809,749
Coach, Inc. (b) 40,200 1,999,548
The Finish Line, Inc. Class A (b) 108,260 2,404,455
Too, Inc. (b) 115,210 2,333,002
Urban Outfitters, Inc. (b) 91,500 3,284,850
--------------
12,831,604
Retail - Home Furnishings 2.9%
Bed Bath & Beyond, Inc. (b) 103,580 4,019,940
The Bombay Company, Inc. (b) 134,655 1,431,382
Williams-Sonoma, Inc. (b) 68,100 1,988,520
--------------
7,439,842
Retail - Miscellaneous/Diversified 1.0%
PETsMART, Inc. (b) 148,882 2,481,863
Retail - Restaurants 2.8%
O'Charley's, Inc. (b) 75,900 1,634,127
P.F. Chang's China Bistro, Inc. (b) 27,435 1,350,076
Panera Bread Company Class A (b) 104,519 4,180,760
--------------
7,164,963
Telecommunications - Cellular 0.7%
Nextel Communications, Inc. Class A (b) 93,240 1,685,779
Telecommunications - Equipment 4.2%
Adtran, Inc. (b) 37,400 1,918,246
Advanced Fibre Communications, Inc. (b) 122,645 1,995,434
Alcatel SA ADR (b) 334,600 2,994,670
Avaya, Inc. (b) 222,900 1,439,934
Corning, Inc. (b) 343,100 2,535,509
--------------
10,883,793
Transportation - Airline 2.6%
AirTran Holdings, Inc. (b) 355,600 3,723,132
Delta Air Lines, Inc. 199,770 2,932,624
--------------
6,655,756
Transportation - Truck 0.7%
Heartland Express, Inc. (b) 83,198 1,851,156
Trucks & Parts - Heavy Duty 1.5%
Navistar International Corporation (b) 122,310 3,990,975
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $223,585,096) 255,258,644
- -------------------------------------------------------------------------------
Short-Term Investments (a) 13.3%
Collateral Received for Securities
Lending (f) 12.0%
Money Market Funds 8.1%
Deutsche Daily Assets Fund - Institutional
Class 20,892,641 20,892,641
Repurchase Agreements 3.9%
Barclays Capital, Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase
proceeds $3,324,345); Collateralized by:
United States Government &
Agency Issues $ 3,324,220 3,324,220
Goldman, Sachs and Company (Dated
6/30/03), 1.22%, Due 7/01/03 (Repurchase
proceeds $3,324,333); Collateralized by:
United States Government & Agency Issues 3,324,220 3,324,220
31
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- -------------------------------------------------------------------------------
STRONG ENTERPRISE FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Lehman Brothers Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase
proceeds $3,324,345); Collateralized by:
United States Government &
Agency Issues $ 3,324,220 $ 3,324,220
--------------
9,972,660
--------------
Total Collateral Received for Securities
Lending 30,865,301
Repurchase Agreements 1.3%
ABN AMRO Inc. (Dated 6/30/03), 1.20%,
Due 7/01/03, (Repurchase proceeds
$1,200,040); Collateralized by: United
States Government & Agency Issues (c) 1,200,000 1,200,000
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03, (Repurchase proceeds
$2,057,243); Collateralized by: United
States Government & Agency Issues (c) 2,057,200 2,057,200
--------------
Total Repurchase Agreements 3,257,200
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $34,122,501) 34,122,501
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $257,707,597) 112.4% 289,381,145
Other Assets and Liabilities, Net (12.4%) (31,987,758)
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 257,393,387
===============================================================================
STRONG GROWTH 20 FUND
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Common Stocks 97.2%
Banks - Money Center 2.0%
Citigroup, Inc. 130,000 $ 5,564,000
Building - Resident/Commercial 2.6%
Lennar Corporation Class A 100,000 7,150,000
Commercial Services - Schools 3.4%
Apollo Group, Inc. Class A (b) 150,000 9,264,000
Computer - Local Networks 5.2%
Cisco Systems, Inc. (b) 500,000 8,345,000
Juniper Networks, Inc. (b) 490,000 6,061,300
--------------
14,406,300
Computer - Manufacturers 5.8%
Dell, Inc. (b) 500,000 15,980,000
Computer - Services 4.1%
Amdocs, Ltd. (b) 475,000 11,400,000
Computer Software - Enterprise 4.1%
VERITAS Software Corporation (b) 400,000 11,468,000
Computer Software - Security 4.0%
VeriSign, Inc. (b) 800,000 11,064,000
Electronics - Semiconductor Equipment 1.8%
MEMC Electronic Materials, Inc. (b) 500,000 4,900,000
Electronics - Semiconductor
Manufacturing 2.9%
Broadcom Corporation Class A (b) 325,000 8,095,750
Household - Audio/Video 6.7%
Harman International Industries, Inc. 235,000 18,597,900
Internet - E*Commerce 5.6%
eBay, Inc. (b) 150,000 15,627,000
Internet - Internet Service
Provider/Content 1.1%
j2 Global Communications, Inc. (b) 65,000 2,990,000
Medical - Biomedical/Genetics 13.8%
Amgen, Inc. (b) 100,000 6,644,000
Genzyme Corporation (b) 310,000 12,958,000
Gilead Sciences, Inc. (b) 335,000 18,619,300
--------------
38,221,300
Medical - Generic Drugs 3.0%
Taro Pharmaceutical Industries, Ltd. (b) 100,000 5,488,000
Teva Pharmaceutical Industries, Ltd. ADR 50,000 2,846,500
--------------
8,334,500
Medical - Health Maintenance
Organizations 3.8%
Aetna, Inc. 170,000 10,234,000
Mid Atlantic Medical Services, Inc. (b) 5,200 271,960
--------------
10,505,960
Medical - Products 2.5%
Boston Scientific Corporation (b) 115,000 7,026,500
Oil & Gas - Field Services 3.4%
BJ Services Company (b) 250,000 9,340,000
Oil & Gas - Machinery/Equipment 2.7%
Smith International, Inc. (b) 200,000 7,348,000
Retail - Apparel/Shoe 7.0%
Chicos FAS, Inc. (b) 275,000 5,788,750
Coach, Inc. (b) 275,000 13,678,500
--------------
19,467,250
Retail - Restaurants 4.8%
Brinker International, Inc. (b) 160,000 5,763,200
Ruby Tuesday, Inc. 300,000 7,419,000
--------------
13,182,200
Telecommunications - Equipment 6.9%
Corning, Inc. (b) 2,600,000 19,214,000
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $234,123,455) 269,146,660
- -------------------------------------------------------------------------------
Short-Term Investments (a) 5.5%
Repurchase Agreements 5.0%
ABN AMRO Inc. (Dated 6/30/03), 1.20%,
Due 7/01/03 (Repurchase proceeds
$12,300,410); Collateralized by: United
States Government & Agency Issues (c) $ 12,300,000 12,300,000
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds
$1,506,631); Collateralized by: United
States Government & Agency Issues (c) 1,506,600 1,506,600
--------------
13,806,600
32
- -------------------------------------------------------------------------------
STRONG GROWTH 20 FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
United States Government Issues 0.5%
United States Treasury Bills,
Due 7/07/03 thru 8/07/03 (e) $ 1,425,000 $ 1,424,545
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $15,230,916) 15,231,145
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $249,354,371) 102.7% 284,377,805
Other Assets and Liabilities, Net (2.7%) (7,576,062)
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 276,801,743
===============================================================================
WRITTEN OPTIONS ACTIVITY
- -------------------------------------------------------------------------------
Contracts Premiums
- -------------------------------------------------------------------------------
Options outstanding at beginning of period -- $ --
Options written during the period 3,385 683,262
Options closed (3,385) (683,262)
Options expired -- --
Options exercised -- --
------------ --------------
Options outstanding at end of period -- $ --
============ ==============
STRONG GROWTH FUND
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Common Stocks 100.0%
Banks - Midwest 0.5%
TCF Financial Corporation 200,000 $ 7,968,000
Banks - Money Center 1.4%
Citigroup, Inc. 575,000 24,610,000
Banks - Super Regional 0.7%
Wells Fargo Company 235,000 11,844,000
Building - Resident/Commercial 1.1%
Centex Corporation 110,000 8,556,900
Lennar Corporation Class A 150,000 10,725,000
--------------
19,281,900
Commercial Services - Advertising 0.1%
Omnicom Group, Inc. 35,000 2,509,500
Commercial Services - Miscellaneous 1.4%
Hewitt Associates, Inc. Class A (b) 100,000 2,355,000
Iron Mountain, Inc. (b) 145,000 5,378,050
Paychex, Inc. 565,000 16,560,150
--------------
24,293,200
Commercial Services - Schools 2.7%
Apollo Group, Inc. Class A (b) 535,000 33,041,600
Corinthian Colleges, Inc. (b) 275,000 13,356,750
--------------
46,398,350
Commercial Services - Staffing 0.5%
Monster Worldwide, Inc. (b) 450,000 8,878,500
Computer - Integrated Systems 0.4%
Symbol Technologies, Inc. 475,000 6,179,750
Computer - Local Networks 3.5%
Cisco Systems, Inc. (b) 2,230,000 37,218,700
Juniper Networks, Inc. (b) 800,000 9,896,000
QLogic Corporation (b) 275,000 13,290,750
--------------
60,405,450
Computer - Manufacturers 2.7%
Dell, Inc. (b) 1,440,000 46,022,400
Computer - Memory Devices 0.8%
EMC Corporation (b) 935,000 9,789,450
Network Appliance, Inc. (b) 250,000 4,052,500
--------------
13,841,950
Computer - Services 2.0%
Affiliated Computer Services, Inc. Class A (b) 75,000 3,429,750
Amdocs, Ltd. (b) 1,255,000 30,120,000
--------------
33,549,750
Computer Software - Desktop 1.5%
Microsoft Corporation 1,000,000 25,610,000
Computer Software -
Education/Entertainment 1.4%
Electronic Arts, Inc. (b) 315,000 23,306,850
Computer Software - Enterprise 3.7%
Documentum, Inc. (b) 730,000 14,359,100
Mercury Interactive Corporation (b) 500,000 19,305,000
Oracle Systems Corporation (b) 625,000 7,512,500
SAP AG Sponsored ADR 460,000 13,441,200
VERITAS Software Corporation (b) 310,000 8,887,700
--------------
63,505,500
Computer Software - Security 2.2%
Netscreen Technologies, Inc. (b) 935,000 21,084,250
Symantec Corporation (b) 100,000 4,386,000
VeriSign, Inc. (b) 920,000 12,723,600
--------------
38,193,850
Cosmetics - Personal Care 0.4%
Colgate Palmolive Company 50,000 2,897,500
The Gillette Company 100,000 3,186,000
--------------
6,083,500
Diversified Operations 0.4%
AOL Time Warner, Inc. (b) 365,000 5,872,850
Electronics - Parts Distributors 0.4%
W.W. Grainger, Inc. 150,000 7,014,000
Electronics - Semiconductor
Equipment 2.2%
KLA-Tencor Corporation (b) 315,000 14,644,350
MEMC Electronic Materials, Inc. (b) 700,000 6,860,000
Novellus Systems, Inc. (b) 460,000 16,845,660
--------------
38,350,010
Electronics - Semiconductor
Manufacturing 7.7%
Altera Corporation (b) 500,000 8,200,000
Analog Devices, Inc. (b) 845,000 29,422,900
Broadcom Corporation Class A (b) 710,000 17,686,100
GlobespanVirata, Inc. (b) 500,000 4,125,000
Integrated Circuit Systems, Inc. (b) 567,300 17,830,239
Intel Corporation 1,075,000 22,342,800
Linear Technology Corporation 275,000 8,857,750
Maxim Integrated Products, Inc. 25,000 854,750
Microchip Technology, Inc. 330,000 8,127,900
STMicroelectronics NV - New York
Registry Shares 100,000 2,079,000
Vitesse Semiconductor Corporation (b) 450,000 2,214,000
Xilinx, Inc. (b) 400,000 10,124,000
--------------
131,864,439
33
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- -------------------------------------------------------------------------------
STRONG GROWTH FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Finance - Consumer/Commercial Loans 1.1%
Capital One Financial Corporation 125,000 $ 6,147,500
SLM Corporation 345,000 13,513,650
--------------
19,661,150
Finance - Investment Brokers 0.6%
Lehman Brothers Holdings, Inc. 145,000 9,639,600
Finance - Mortgage & Related Services 0.7%
Doral Financial Corporation 260,000 11,609,000
Financial Services - Miscellaneous 1.6%
Alliance Data Systems Corporation (b) 300,000 7,020,000
American Express Company 220,000 9,198,200
First Data Corporation 285,000 11,810,400
--------------
28,028,600
Food - Miscellaneous Preparation 0.3%
PepsiCo, Inc. 100,000 4,450,000
Household - Audio/Video 0.7%
Harman International Industries, Inc. 160,000 12,662,400
Household - Office Furniture 0.2%
American Financial Realty Trust 280,600 4,183,746
Insurance - Property/Casualty/Title 0.3%
RenaissanceRe Holdings, Ltd. 125,000 5,690,000
Internet - E*Commerce 3.7%
Amazon.com, Inc. (b) 50,000 1,824,500
eBay, Inc. (b) 175,000 18,231,500
InterActiveCorp (b) 675,000 26,709,750
University of Phoenix Online (b) 330,000 16,731,000
--------------
63,496,750
Internet - Internet Service
Provider/Content 0.4%
Yahoo! Inc. (b) 185,000 6,060,600
Leisure - Gaming 0.7%
International Game Technology 110,000 11,256,300
Media - Cable TV 1.5%
EchoStar Communications Corporation
Class A (b) 550,000 19,041,000
General Motors Corporation Class H (b) 575,000 7,365,750
--------------
26,406,750
Media - Radio/TV 3.3%
Sirius Satellite Radio, Inc. (b) 2,400,000 4,056,000
Univision Communications, Inc. Class A (b) 875,000 26,600,000
Viacom, Inc. Class B (b) 385,000 16,809,100
Westwood One, Inc. (b) 120,000 4,071,600
XM Satellite Radio Holdings, Inc. Class A (b) 500,000 5,525,000
--------------
57,061,700
Medical - Biomedical/Genetics 6.1%
Amgen, Inc. (b) 490,000 32,555,600
Biogen, Inc. (b) 130,000 4,940,000
CV Therapeutics, Inc. (b) 320,000 9,491,200
Genentech, Inc. (b) 135,000 9,736,200
Genzyme Corporation (b) 705,000 29,469,000
Gilead Sciences, Inc. (b) 345,000 19,175,100
--------------
105,367,100
Medical - Drug/Diversified 0.7%
Johnson & Johnson 235,000 12,149,500
Medical - Ethical Drugs 6.6%
Allergan, Inc. 25,000 1,927,500
Biovail Corporation International (b) 305,000 14,353,300
Forest Laboratories, Inc. (b) 315,000 17,246,250
Eli Lilly & Company 135,000 9,310,950
Pfizer, Inc. 1,905,000 65,055,750
Wyeth 130,000 5,921,500
--------------
113,815,250
Medical - Generic Drugs 1.4%
Mylan Laboratories, Inc. 145,000 5,041,650
Taro Pharmaceutical Industries, Ltd. (b) 225,000 12,348,000
Teva Pharmaceutical Industries, Ltd. ADR 125,000 7,116,250
--------------
24,505,900
Medical - Health Maintenance
Organizations 0.6%
First Health Group Corporation (b) 400,000 11,040,000
Medical - Instruments 1.6%
CTI Molecular Imaging, Inc. (b) 460,000 8,698,600
Fisher Scientific International, Inc. (b) 550,000 19,195,000
--------------
27,893,600
Medical - Products 5.8%
Advanced Neuromodulation Systems, Inc. (b) 250,000 12,942,500
Alcon, Inc. 385,000 17,594,500
C.R. Bard, Inc. 65,000 4,635,150
Boston Scientific Corporation (b) 540,000 32,994,000
Millipore Corporation (b) 145,000 6,433,650
Respironics, Inc. (b) 350,000 13,132,000
St. Jude Medical, Inc. (b) 220,000 12,650,000
--------------
100,381,800
Medical - Wholesale Drugs/Sundries 0.5%
AmerisourceBergen Corporation 125,000 8,668,750
Medical/Dental - Services 0.4%
Quest Diagnostics, Inc. (b) 35,000 2,233,000
VCA Antech, Inc. (b) 230,000 4,501,100
--------------
6,734,100
Oil & Gas - Drilling 1.6%
ENSCO International, Inc. 605,000 16,274,500
Nabors Industries, Ltd. (b) 100,000 3,955,000
Rowan Companies, Inc. (b) 315,000 7,056,000
--------------
27,285,500
Oil & Gas - Field Services 1.0%
BJ Services Company (b) 475,000 17,746,000
Oil & Gas - Machinery/Equipment 1.0%
Smith International, Inc. (b) 480,000 17,635,200
Oil & Gas - United States Exploration &
Production 1.3%
Apache Corporation 70,000 4,554,200
Burlington Resources, Inc. 50,000 2,703,500
XTO Energy, Inc. 760,001 15,283,620
--------------
22,541,320
Retail - Apparel/Shoe 2.1%
Chicos FAS, Inc. (b) 500,000 10,525,000
Coach, Inc. (b) 325,000 16,165,500
Ross Stores, Inc. 200,000 8,548,000
--------------
35,238,500
Retail - Consumer Electronics 0.5%
Best Buy Company, Inc. (b) 210,000 9,223,200
Retail - Department Stores 1.2%
Kohl's Corporation (b) 400,000 20,552,000
34
- -------------------------------------------------------------------------------
STRONG GROWTH FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Retail - Discount & Variety 0.4%
99 Cents Only Stores (b) 150,000 $ 5,148,000
Fred's, Inc. 40,000 1,487,200
--------------
6,635,200
Retail - Home Furnishings 0.9%
Bed Bath & Beyond, Inc. (b) 400,000 15,524,000
Retail - Miscellaneous/Diversified 1.7%
Guitar Center, Inc. (b) 575,000 16,675,000
PETCO Animal Supplies, Inc. (b) 285,000 6,195,900
PETsMART, Inc. (b) 355,000 5,917,850
--------------
28,788,750
Retail - Restaurants 1.3%
Outback Steakhouse, Inc. 150,000 5,850,000
P.F. Chang's China Bistro, Inc. (b) 210,000 10,334,100
Panera Bread Company Class A (b) 175,000 7,000,000
--------------
23,184,100
Retail - Super/Mini Markets 0.7%
Whole Foods Marketing, Inc. (b) 250,000 11,882,500
Retail/Wholesale - Auto Parts 1.0%
CarMax, Inc. (b) 565,000 17,034,750
Retail/Wholesale - Building Products 1.2%
The Home Depot, Inc. 390,000 12,916,800
Lowe's Companies, Inc. 175,000 7,516,250
--------------
20,433,050
Steel - Producers 0.5%
Nucor Corporation 175,000 8,548,750
Telecommunications - Cellular 1.1%
Nextel Communications, Inc. Class A (b) 400,000 7,232,000
Vodafone Group PLC Sponsored ADR 635,000 12,477,750
--------------
19,709,750
Telecommunications - Equipment 3.6%
Comverse Technology, Inc. (b) 200,000 3,006,000
Corning, Inc. (b) 3,500,000 25,865,000
JDS Uniphase Corporation (b) 2,000,000 7,020,000
Polycom, Inc. (b) 325,000 4,504,500
UTStarcom, Inc. (b) 600,000 21,342,000
--------------
61,737,500
Transportation - Air Freight 0.5%
FedEx Corporation 125,000 7,753,750
Transportation - Airline 1.9%
JetBlue Airways Corporation (b) 495,000 20,933,550
Ryanair Holdings PLC ADR (b) 250,000 11,225,000
--------------
32,158,550
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $1,369,208,992) 1,719,958,715
- -------------------------------------------------------------------------------
Short-Term Investments (a) 4.5%
Collateral Received for Securities
Lending (f) 4.3%
Money Market Funds 2.9%
Deutsche Daily Assets Fund - Institutional
Class 49,094,332 49,094,332
Repurchase Agreements 1.4%
Barclays Capital, Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase proceeds
$7,811,674); Collateralized by: United States
Government & Agency Issues $ 7,811,380 7,811,380
Goldman, Sachs and Company (Dated 6/30/03),
1.22%, Due 7/01/03 (Repurchase proceeds
$7,811,645); Collateralized by:
United States Government & Agency Issues 7,811,380 7,811,380
Lehman Brothers Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase
proceeds $7,811,674); Collateralized by:
United States Government &
Agency Issues 7,811,380 7,811,380
--------------
23,434,140
--------------
Total Collateral Received for Securities
Lending 72,528,472
Repurchase Agreements 0.2%
State Street Bank (Dated 6/30/03), 0.75%
Due 7/01/03 (Repurchase proceeds
$3,928,082); Collateralized by United States
Government & Agency Issues (c) 3,928,000 3,928,000
United States Government Issues 0.0%
United States Treasury Bills,
Due 7/03/03 thru 7/17/03 (e) 500,000 529,920
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $76,986,352) 76,986,392
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $1,446,195,344) 104.5% 1,796,945,107
Other Assets and Liabilities, Net (4.5%) (78,121,154)
- -------------------------------------------------------------------------------
Net Assets 100.0% $1,718,823,953
===============================================================================
FUTURES
- --------------------------------------------------------------------------------
Underlying Unrealized
Expiration Face Amount Appreciation/
Date at Value (Depreciation)
- --------------------------------------------------------------------------------
Purchased:
30 Nasdaq 100 Futures 9/03 $ 3,613,500 $ (130,952)
WRITTEN OPTIONS ACTIVITY
- --------------------------------------------------------------------------------
Contracts Premiums
- --------------------------------------------------------------------------------
Options outstanding at beginning of period 500 $ 368,489
Options written during the period 7,075 1,211,655
Options closed (6,967) (1,522,503)
Options expired (605) (55,430)
Options exercised (3) (2,211)
------------ --------------
Options outstanding at end of period -- $ --
============ ==============
LEGEND
- --------------------------------------------------------------------------------
(a) Short-term investments include any security which has a remaining maturity
of less than one year and investments in money market funds.
(b) Non-income producing security.
(c) See Note 2(J) of Notes to Financial Statements.
(d) Restricted security.
(e) All or a portion of security pledged as collateral to cover margin
requirements on open futures contracts.
(f) See Note 2(M) of Notes to Financial Statements.
Percentages are stated as a percent of net assets.
See Notes to Financial Statements.
35
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
(In Thousands, Except Per Share Amounts)
Strong Strong Strong
Blue Chip Discovery Endeavor
Fund Fund Fund
----------- ---------- --------
Assets:
Investments in Securities, at Value (Including Repurchase
Agreements of $14,576, $17,038 and $62, respectively)
(Cost of $164,582, $158,521 and $4,549, respectively) $ 184,596 $ 170,614 $ 5,002
Receivable for Securities Sold 2,102 1,256 --
Receivable for Fund Shares Sold 5 31 --
Dividends and Interest Receivable 53 48 1
Other Assets 61 35 9
----------- --------- --------
Total Assets 186,817 171,984 5,012
Liabilities:
Payable for Securities Purchased 2,743 11,636 20
Payable for Fund Shares Redeemed 71 4 --
Payable Upon Return of Securities on Loan -- 13,616 --
Cash Overdraft Liability -- 64 --
Accrued Operating Expenses and Other Liabilities 185 53 8
----------- --------- --------
Total Liabilities 2,999 25,373 28
----------- --------- --------
Net Assets $ 183,818 $ 146,611 $ 4,984
=========== ========= ========
Net Assets Consist of:
Capital Stock (Par Value and Paid-in Capital) $ 365,882 $ 149,379 $ 6,856
Undistributed Net Investment Income (Loss) (640) (304) (21)
Undistributed Net Realized Gain (Loss) (201,437) (14,557) (2,303)
Net Unrealized Appreciation (Depreciation) 20,013 12,093 452
----------- --------- --------
Net Assets $ 183,818 $ 146,611 $ 4,984
=========== ========= ========
Capital Shares Outstanding (Unlimited Number Authorized) 19,419 9,029 623
Net Asset Value Per Share $ 9.47 $ 16.24 $ 8.00
=========== ========= ========
See Notes to Financial Statements.
36
STATEMENTS OF ASSETS AND LIABILITIES (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
(In Thousands, Except Per Share Amounts)
Strong Strong Large Strong U.S.
Large Cap Company Emerging
Growth Fund Growth Fund Growth Fund
----------- ------------ -----------
Assets:
Investments in Securities, at Value (Cost of $592,882,
$32,428 and $54,741, respectively) $ 688,883 $ 35,191 $ 74,316
Receivable for Securities Sold 3,651 538 212
Receivable for Fund Shares Sold 13 173 74
Dividends and Interest Receivable 318 16 3
Variation Margin Receivable 11 -- --
Other Assets 102 14 8
----------- ----------- -----------
Total Assets 692,978 35,932 74,613
Liabilities:
Payable for Securities Purchased 11,064 2,383 439
Payable for Fund Shares Redeemed 4,007 7 4
Payable Upon Return of Securities on Loan 28,501 -- --
Accrued Operating Expenses and Other Liabilities 242 24 88
----------- ------------ -----------
Total Liabilities 43,814 2,414 531
----------- ------------ -----------
Net Assets $ 649,164 $ 33,518 $ 74,082
=========== ============ ===========
Net Assets Consist of:
Capital Stock (Par Value and Paid-in Capital) $ 1,141,851 $ 41,675 $ 123,500
Undistributed Net Investment Income (Loss) (1,324) (41) (571)
Undistributed Net Realized Gain (Loss) (587,179) (10,880) (68,422)
Net Unrealized Appreciation (Depreciation) 95,816 2,764 19,575
----------- ------------ -----------
Net Assets $ 649,164 $ 33,518 $ 74,082
=========== ============ ===========
Capital Shares Outstanding (Unlimited Number Authorized) 34,598 2,802 6,186
Net Asset Value Per Share $ 18.76 $ 11.96 $ 11.98
=========== ============ ===========
See Notes to Financial Statements.
37
STATEMENTS OF ASSETS AND LIABILITIES (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
(In Thousands,
Except As Noted)
Strong
Enterprise
Fund
--------------
Assets:
Investments in Securities, at Value (Cost of $257,708) $ 289,381
Receivable for Securities Sold 2,013
Receivable for Fund Shares Sold 8
Dividends and Interest Receivable 43
Other Assets 43
--------------
Total Assets 291,488
Liabilities:
Payable for Securities Purchased 1,504
Payable for Fund Shares Redeemed 1,305
Payable Upon Return of Securities on Loan 30,865
Accrued Operating Expenses and Other Liabilities 421
--------------
Total Liabilities 34,095
--------------
Net Assets $ 257,393
==============
Net Assets Consist of:
Capital Stock (Par Value and Paid-in Capital) $ 593,905
Undistributed Net Investment Income (Loss) (1,660)
Undistributed Net Realized Gain (Loss) (366,526)
Net Unrealized Appreciation (Depreciation) 31,674
--------------
Net Assets $ 257,393
==============
Investor Class ($ and shares in full)
Net Assets $ 239,275,544
Capital Shares Outstanding (Unlimited Number Authorized) 13,047,403
Net Asset Value Per Share $ 18.34
==============
Advisor Class ($ and shares in full)
Net Assets $ 1,634,044
Capital Shares Outstanding (Unlimited Number Authorized) 89,184
Net Asset Value Per Share $ 18.32
==============
Class K ($ and shares in full)
Net Assets $ 16,483,799
Capital Shares Outstanding (Unlimited Number Authorized) 893,224
Net Asset Value Per Share $ 18.45
==============
See Notes to Financial Statements.
38
STATEMENTS OF ASSETS AND LIABILITIES (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
(In Thousands,
Except As Noted)
Strong
Growth 20
Fund
--------------
Assets:
Investments in Securities, at Value (Cost of $249,354) $ 284,378
Receivable for Fund Shares Sold 38
Dividends and Interest Receivable 10
Other Assets 35
--------------
Total Assets 284,461
Liabilities:
Payable for Securities Purchased 3,384
Payable for Fund Shares Redeemed 4,035
Accrued Operating Expenses and Other Liabilities 240
--------------
Total Liabilities 7,659
--------------
Net Assets $ 276,802
==============
Net Assets Consist of:
Capital Stock (Par Value and Paid-in Capital) $ 657,240
Undistributed Net Investment Income (Loss) (1,948)
Undistributed Net Realized Gain (Loss) (413,513)
Net Unrealized Appreciation (Depreciation) 35,023
--------------
Net Assets $ 276,802
==============
Investor Class ($ and shares in full)
Net Assets $ 269,972,637
Capital Shares Outstanding (Unlimited Number Authorized) 23,834,758
Net Asset Value Per Share $ 11.33
==============
Advisor Class ($ and shares in full)
Net Assets $ 6,829,106
Capital Shares Outstanding (Unlimited Number Authorized) 602,134
Net Asset Value Per Share $ 11.34
==============
See Notes to Financial Statements.
39
STATEMENTS OF ASSETS AND LIABILITIES (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
(In Thousands,
Except As Noted)
Strong
Growth Fund
----------------
Assets:
Investments in Securities, at Value (Cost of $1,446,195) $ 1,796,945
Receivable for Securities Sold 16,654
Receivable for Fund Shares Sold 107
Dividends and Interest Receivable 221
Variation Margin Receivable 6
Other Assets 173
----------------
Total Assets 1,814,106
Liabilities:
Payable for Securities Purchased 19,769
Payable for Fund Shares Redeemed 2,263
Payable Upon Return of Securities on Loan 72,528
Accrued Operating Expenses and Other Liabilities 722
----------------
Total Liabilities 95,282
----------------
Net Assets $ 1,718,824
================
Net Assets Consist of:
Capital Stock (Par Value and Paid-in Capital) $ 2,480,281
Undistributed Net Investment Income (Loss) (7,806)
Undistributed Net Realized Gain (Loss) (1,104,270)
Net Unrealized Appreciation (Depreciation) 350,619
----------------
Net Assets $ 1,718,824
================
Investor Class ($ and shares in full)
Net Assets $ 1,399,050,010
Capital Shares Outstanding (Unlimited Number Authorized) 92,439,130
Net Asset Value Per Share $ 15.13
================
Institutional Class ($ and shares in full)
Net Assets $ 265,234,266
Capital Shares Outstanding (Unlimited Number Authorized) 17,120,504
Net Asset Value Per Share $ 15.49
================
Advisor Class ($ and shares in full)
Net Assets $ 11,262,141
Capital Shares Outstanding (Unlimited Number Authorized) 748,422
Net Asset Value Per Share $ 15.05
================
Class C ($ and shares in full)
Net Assets $ 282,507
Capital Shares Outstanding (Unlimited Number Authorized) 18,749
Net Asset Value Per Share $ 15.07
================
Class K ($ and shares in full)
Net Assets $ 42,995,029
Capital Shares Outstanding (Unlimited Number Authorized) 2,816,328
Net Asset Value Per Share $ 15.27
================
See Notes to Financial Statements.
40
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
For the Six Months Ended June 30, 2003 (Unaudited)
(In Thousands)
Strong Strong Strong
Blue Chip Discovery Endeavor
Fund Fund Fund
--------- --------- --------
Income:
Dividends - Unaffiliated Issuers (net of foreign withholding taxes
of $0, $2 and $0, respectively) $ 845 $ 583 $ 17
Dividends - Affiliated Issuers -- 5 --
Interest 43 76 1
--------- --------- --------
Total Income 888 664 18
Expenses:
Investment Advisory Fees 434 500 16
Administrative Fees 261 167 6
Custodian Fees 6 13 3
Shareholder Servicing Costs 685 242 14
Reports to Shareholders 127 48 2
Brokerage Fees 2 1 --
12b-1 Fees -- -- 5
Professional Fees 8 8 7
Federal and State Registration Fees 9 11 9
Other 42 14 1
--------- --------- --------
Total Expenses before Expense Offsets 1,574 1,004 63
Expense Offsets (Note 4) (46) (29) (24)
--------- --------- --------
Expenses, Net 1,528 975 39
--------- --------- --------
Net Investment Income (Loss) (640) (311) (21)
Realized and Unrealized Gain (Loss):
Net Realized Gain (Loss) on Investments (29,648) 2,873 80
Net Change in Unrealized Appreciation/Depreciation on Investments 48,041 13,672 481
--------- --------- --------
Net Gain (Loss) on Investments 18,393 16,545 561
--------- --------- --------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 17,753 $ 16,234 $ 540
========= ========= ========
See Notes to Financial Statements.
41
STATEMENTS OF OPERATIONS (continued)
- --------------------------------------------------------------------------------
For the Six Months Ended June 30, 2003 (Unaudited)
(In Thousands)
Strong Strong Large Strong U.S.
Large Cap Company Emerging
Growth Fund Growth Fund Growth Fund
----------- ----------- -----------
Income:
Dividends - Unaffiliated Issuers (net of foreign withholding
taxes of $18, $0 and $0, respectively) $ 2,310 $ 129 $ 10
Dividends - Affiliated Issuers 1 -- --
Interest 148 7 7
----------- ----------- -----------
Total Income 2,459 136 17
Expenses:
Investment Advisory Fees 1,653 88 227
Administrative Fees 899 35 91
Custodian Fees 36 3 9
Shareholder Servicing Costs 1,017 16 244
Reports to Shareholders 173 29 35
Brokerage Fees 2 -- 1
12b-1 Fees -- 29 --
Professional Fees 11 (16) 7
Federal and State Registration Fees 13 16 11
Other 46 17 8
----------- ----------- -----------
Total Expenses before Expense Offsets 3,850 217 633
Expense Offsets (Note 4) (67) (40) (45)
----------- ----------- -----------
Expenses, Net 3,783 177 588
----------- ----------- -----------
Net Investment Income (Loss) (1,324) (41) (571)
Realized and Unrealized Gain (Loss):
Net Realized Gain (Loss) on:
Investments (3,511) (102) 842
Written Options 254 -- --
Futures Contracts 4,289 -- --
----------- ----------- -----------
Net Realized Gain (Loss) 1,032 (102) 842
Net Change in Unrealized Appreciation/Depreciation on:
Investments 78,599 2,973 11,399
Futures Contracts 306 -- --
----------- ----------- -----------
Net Change in Unrealized Appreciation/Depreciation 78,905 2,973 11,399
----------- ----------- -----------
Net Gain (Loss) on Investments 79,937 2,871 12,241
----------- ----------- -----------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 78,613 $ 2,830 $ 11,670
=========== =========== ===========
See Notes to Financial Statements.
42
STATEMENTS OF OPERATIONS (continued)
- --------------------------------------------------------------------------------
For the Six Months Ended June 30, 2003 (Unaudited)
(In Thousands)
Strong Strong Strong
Enterprise Growth 20 Growth
Fund Fund Fund
---------- --------- ---------
Income:
Dividends - Unaffiliated Issuers (net of foreign withholding taxes
of $8, $1 and $73, respectively) $ 468 $ 163 $ 3,202
Dividends - Affiliated Issuers -- -- 50
Interest 71 111 145
---------- --------- ---------
Total Income 539 274 3,397
Expenses (Note 4):
Investment Advisory Fees 866 936 5,720
Administrative Fees 343 374 1,969
Custodian Fees 11 13 42
Shareholder Servicing Costs 1,004 743 2,887
Reports to Shareholders 226 168 487
12b-1 Fees 2 8 13
Other 74 52 212
---------- --------- ---------
Total Expenses before Expense Offsets 2,526 2,294 11,330
Expense Offsets (327) (72) (127)
---------- --------- ---------
Expenses, Net 2,199 2,222 11,203
---------- --------- ---------
Net Investment Income (Loss) (1,660) (1,948) (7,806)
Realized and Unrealized Gain (Loss):
Net Realized Gain (Loss) on:
Investments 6,978 31 2,713
Written Options -- (460) (587)
Futures Contracts -- 1,104 678
---------- --------- ---------
Net Realized Gain (Loss) 6,978 675 2,804
Net Change in Unrealized Appreciation/Depreciation on:
Investments 29,011 27,348 222,675
Written Options -- -- (271)
Futures Contracts -- -- (131)
---------- --------- ---------
Net Change in Unrealized Appreciation/Depreciation 29,011 27,348 222,273
---------- --------- ---------
Net Gain (Loss) on Investments 35,989 28,023 225,077
---------- --------- ---------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 34,329 $ 26,075 $ 217,271
========== ========= =========
See Notes to Financial Statements.
43
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
(In Thousands)
Strong Blue Chip Fund Strong Discovery Fund
--------------------------------- --------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002 June 30, 2003 Dec. 31, 2002
---------------- ------------- ---------------- -------------
(Unaudited) (Unaudited)
Operations:
Net Investment Income (Loss) $ (640) $ (1,903) $ (311) $ (548)
Net Realized Gain (Loss) (29,648) (50,225) 2,873 (17,115)
Net Change in Unrealized Appreciation/Depreciation 48,041 (40,555) 13,672 (1,218)
---------------- ------------ ---------------- -------------
Net Increase (Decrease) in Net Assets Resulting
from Operations 17,753 (92,683) 16,234 (18,881)
Distributions from Net Realized Gains -- -- -- (4,117)
Capital Share Transactions (Note 6):
Net Increase (Decrease) in Net Assets from
Capital Share Transactions (37,227) (43,020) (2,984) (1,907)
---------------- ------------ ---------------- -------------
Total Increase (Decrease) in Net Assets (19,474) (135,703) 13,250 (24,905)
Net Assets:
Beginning of Period 203,292 338,995 133,361 158,266
---------------- ------------ ---------------- -------------
End of Period $ 183,818 $ 203,292 $ 146,611 $ 133,361
================ ============ ================ =============
Undistributed Net Investment Income (Loss) $ (640) $ -- $ (304) $ 7
Strong Endeavor Fund Strong Large Cap Growth Fund
--------------------------------- --------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002 June 30, 2003 Dec. 31, 2002
---------------- ------------- ---------------- -------------
(Unaudited) (Unaudited)
Operations:
Net Investment Income (Loss) $ (21) $ (57) $ (1,324) $ (2,758)
Net Realized Gain (Loss) 80 (1,459) 1,032 (168,104)
Net Change in Unrealized Appreciation/Depreciation 481 (232) 78,905 (103,040)
---------------- ------------- ---------------- -------------
Net Increase (Decrease) in Net Assets Resulting
from Operations 540 (1,748) 78,613 (273,902)
Distributions from Net Investment Income -- -- -- --
Capital Share Transactions (Note 6):
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 769 (794) (18,343) (113,540)
---------------- ------------- ---------------- -------------
Total Increase (Decrease) in Net Assets 1,309 (2,542) 60,270 (387,442)
Net Assets:
Beginning of Period 3,675 6,217 588,894 976,336
---------------- ------------- ---------------- -------------
End of Period $ 4,984 $ 3,675 $ 649,164 $ 588,894
================ ============= ================ =============
Undistributed Net Investment Income (Loss) $ (21) $ -- $ (1,324) $ --
See Notes to Financial Statements.
44
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
(In Thousands)
Strong U.S. Emerging
Strong Large Company Growth Fund Growth Fund
------------------------------------------------- --------------------------------
Six Months Ended Period Ended Year Ended Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002 Sept. 30, 2002 June 30, 2003 Dec. 31, 2002
---------------- ------------- -------------- ---------------- -------------
(Unaudited) (Unaudited)
Operations:
Net Investment Income (Loss) $ (41) $ 14 $ 703 $ (571) $ (1,384)
Net Realized Gain (Loss) (102) (1,310) (4,671) 842 (22,207)
Net Change in Unrealized Appreciation/
Depreciation 2,973 2,206 653 11,399 (8,450)
---------------- ------------- -------------- ---------------- -------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 2,830 910 (3,315) 11,670 (32,041)
Distributions:
From Net Investment Income (14) (77) (631) -- --
From Net Realized Gains -- -- (69) -- --
---------------- ------------- -------------- ---------------- -------------
Total Distributions (14) (77) (700) -- --
Capital Share Transactions (Note 6):
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 9,327 2,321 (10,937) 3,998 4,156
---------------- ------------- -------------- ---------------- -------------
Total Increase (Decrease) in Net Assets 12,143 3,154 (14,952) 15,668 (27,885)
Net Assets:
Beginning of Period 21,375 18,221 33,173 58,414 86,299
---------------- ------------- -------------- ---------------- -------------
End of Period $ 33,518 $ 21,375 $ 18,221 $ 74,082 $ 58,414
================ ============= ============== ================ =============
Undistributed Net Investment Income (Loss) $ (41) $ 14 $ 77 $ (571) $ --
Strong Enterprise Fund Strong Growth 20 Fund
--------------------------------- --------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002 June 30, 2003 Dec. 31, 2002
---------------- ------------- ---------------- -------------
(Unaudited) (Unaudited)
Operations:
Net Investment Income (Loss) $ (1,660) $ (4,456) $ (1,948) $ (3,854)
Net Realized Gain (Loss) 6,978 (68,214) 675 (42,684)
Net Change in Unrealized Appreciation/Depreciation 29,011 (28,578) 27,348 (53,067)
---------------- ------------- ---------------- -------------
Net Increase (Decrease) in Net Assets Resulting
from Operations 34,329 (101,248) 26,075 (99,605)
Distributions from Net Investment Income -- -- -- --
Capital Share Transactions (Note 6):
Net Increase (Decrease) in Net Assets from
Capital Share Transactions (6,292) (42,799) 60,517 (81,964)
---------------- ------------- ---------------- -------------
Total Increase (Decrease) in Net Assets 28,037 (144,047) 86,592 (181,569)
Net Assets:
Beginning of Period 229,356 373,403 190,210 371,779
---------------- ------------- ---------------- -------------
End of Period $ 257,393 $ 229,356 $ 276,802 $ 190,210
================ ============= ================ =============
Undistributed Net Investment Income (Loss) $ (1,660) $ -- $ (1,948) $ --
See Notes to Financial Statements.
45
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
(In Thousands)
Strong Growth Fund
--------------------------------
Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002
---------------- -------------
(Unaudited)
Operations:
Net Investment Income (Loss) $ (7,806) $ (19,533)
Net Realized Gain (Loss) 2,804 (268,584)
Net Change in Unrealized Appreciation/Depreciation 222,273 (230,635)
---------------- -------------
Net Increase (Decrease) in Net Assets Resulting from Operations 217,271 (518,752)
Distributions from Net Investment Income -- --
Capital Share Transactions (Note 6):
Net Increase (Decrease) in Net Assets from Capital Share Transactions 27,239 (115,867)
---------------- -------------
Total Increase (Decrease) in Net Assets 244,510 (634,619)
Net Assets:
Beginning of Period 1,474,314 2,108,933
---------------- -------------
End of Period $ 1,718,824 $ 1,474,314
================ =============
Undistributed Net Investment Income (Loss) $ (7,806) $ --
See Notes to Financial Statements.
46
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
1. Organization
The accompanying financial statements represent the Strong Growth Funds
(the "Funds"), which include the following Funds, each with its own
investment objectives and policies:
- Strong Blue Chip Fund/(1)/ (a series of Strong Conservative Equity
Funds, Inc.)
- Strong Discovery Fund/(1)/ (a series of Strong Discovery Fund, Inc.)
- Strong Endeavor Fund/(1)/ (a series of Strong Opportunity Fund, Inc.)
- Strong Large Cap Growth Fund/(1)/ (a series of Strong Large Cap Growth
Fund, Inc.)
- Strong Large Company Growth Fund/(1)/ (a series of Strong Equity Funds,
Inc.)
- Strong U.S. Emerging Growth Fund/(1)/ (a series of Strong Equity Funds,
Inc.)
- Strong Enterprise Fund/(1)/ (a series of Strong Equity Funds, Inc.)
- Strong Growth 20 Fund/(2)/ (a series of Strong Equity Funds, Inc.)
- Strong Growth Fund/(1)/ (a series of Strong Equity Funds, Inc.)
/(1)/ Diversified Fund.
/(2)/ Non-diversified Fund.
Each Fund is an open-end management investment company registered under the
Investment Company Act of 1940, as amended ("1940 Act").
Investor Class shares are available to the general public, Institutional
Class shares are available only to investors that meet certain higher
minimum investment minimums, Advisor Class shares and Class C shares are
available only through financial professionals and Class K shares are
available only through programs managed by Strong Capital Management, Inc.
(the "Advisor"). Strong Blue Chip Fund, Strong Discovery Fund, Strong
Endeavor Fund, Strong Large Cap Growth Fund and Strong U.S. Emerging Growth
Fund offer Investor Class shares. Strong Large Company Growth Fund offers
Investor Class and Class K shares. Strong Enterprise Fund offers Investor
Class, Institutional Class, Advisor Class and Class K shares. Strong Growth
20 Fund offers Investor Class and Advisor Class shares. Strong Growth Fund
offers Investor Class, Institutional Class, Advisor Class, Class C and
Class K shares. All classes differ principally in their respective
shareholder servicing and distribution expenses and sales charges. All
classes of shares have identical rights to earnings, assets and voting
privileges, except for class specific expenses and exclusive rights to vote
on matters affecting only individual classes.
After the close of business on June 30, 2003, Strong Enterprise Fund issued
an additional class of shares: Institutional Class Shares.
After the close of business on June 30, 2003, Strong Large Company Growth
Fund implemented a multi-class structure whereby the Fund is authorized to
offer two classes of shares: Investor Class and Class K. Shares outstanding
prior to June 30, 2003 were designated as Investor Class shares.
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 -- Securities of the Funds traded on a national
securities exchange are valued each business day at the last sales
price. Securities traded on the NASDAQ Stock Market are valued each
business day using the NASDAQ Official Closing Price ("NOCP").
Exchange-traded securities for which there were no transactions and
NASDAQ-traded securities for which there is no NOCP are valued at the
mean of the bid and ask prices. Securities for which market quotations
are not readily available are valued at fair value as determined in
good faith under the general supervision of the Board of Directors.
Occasionally, events affecting the value of foreign investments and
exchange rates occur between the time at which those items are
determined and the close of trading on the New York Stock Exchange.
Such events would not normally be reflected in a calculation of the
Funds' net asset values on that day. If events that materially affect
the value of the Funds' foreign investments or the foreign currency
exchange rates occur during such period, the investments will be
valued at their fair value as determined in good faith under the
general supervision of the Board of Directors. Securities that 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 that are restricted as
to resale or are deemed illiquid. Restricted securities are Section
4(2) commercial paper or are eligible for resale pursuant to Rule 144A
under the Securities Act of 1933. Securities are deemed illiquid based
upon guidelines established by the Funds' Board of Directors. These
securities are valued after giving due consideration to pertinent
factors, such as 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. The
Funds held no restricted and illiquid securities at June 30, 2003.
47
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
(B) Federal Income and Excise Taxes and Distributions to Shareholders --
The Funds intend to comply with the requirements of the Internal
Revenue Code of 1986, as amended, 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
recorded.
Undistributed income or net realized gains for financial statement
purposes may differ from federal income tax purposes due to
differences in the timing, recognition and characterization of income,
expense and capital gain 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 Funds may utilize earnings and profits distributed to shareholders
on redemption of shares as part of the dividends paid deduction.
Strong Discovery Fund, Strong Endeavor Fund, Strong U.S. Emerging
Growth Fund, Strong Enterprise Fund, Strong Growth 20 Fund and Strong
Growth Fund generally pay dividends from net investment income and
distribute net capital gains, if any, that they realize at least
annually. Strong Large Cap Growth Fund, Strong Large Company Growth
Fund and Strong Blue Chip Fund generally pay dividends from net
investment income and distribute net capital gains, if any, that they
realize quarterly.
(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 Funds may utilize derivative
instruments including options, futures and other instruments with
similar characteristics to the extent that they are consistent with
the Funds' investment objectives and limitations. The Funds intend to
use such derivative instruments primarily to hedge or protect from
adverse movements in securities prices, foreign currencies or interest
rates. The use of these instruments may involve risks such as the
possibility that the value of the underlying assets fluctuates, the
derivative becomes illiquid, imperfect correlation exists between the
value of the instruments and the underlying securities, or that the
counterparty fails to perform its obligations.
Investments in foreign-denominated assets or forward currency
contracts may involve greater risks than domestic investments due to
currency rate fluctuations, political and economic instability,
different financial reporting standards and taxes, less liquidity,
less strict regulation of securities markets and smaller markets with
lower trading volume.
(E) Futures -- Upon entering into a futures contract, the Funds deposit in
a segregated account with their custodian, in the name of the broker,
cash and/or other liquid investments equal to the minimum "initial
margin" requirements of the exchange. Each Fund designates liquid
securities 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 futures 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 Funds may write put or call options. Premiums received
by the Funds upon writing put or call options are recorded as an asset
with a corresponding liability that 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 is closed,
expired or exercised, 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. Each
Fund designates liquid securities as collateral on open options
contracts.
(G) Foreign Currency Translation -- Investment securities and other assets
and liabilities initially expressed in foreign currencies are
converted daily 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.
48
- --------------------------------------------------------------------------------
(I) Short Positions -- The Funds may engage in short sale transactions.
For financial statement purposes, an amount equal to the settlement
amount is included in the Statements of Assets and Liabilities as an
asset and an equivalent liability. The amount of the liability is
subsequently marked-to-market to reflect the current value of the
short position. The Funds are liable for any dividends payable on
securities while those securities are in a short position. If the
Funds sell securities short while also holding the long position, they
may protect unrealized gains but will lose the opportunity to profit
on such securities if the price rises. If the Funds sell securities
short when not holding the long position, they will experience a loss
if the market price of the security increases between the date of the
short sale and the date the security is replaced.
(J) Repurchase Agreements -- The Funds may enter into repurchase
agreements with institutions that the Advisor has determined are
creditworthy. Each repurchase agreement is recorded at cost, which
approximates fair value. The Funds require that the 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 Funds to obtain
those securities in the event of a default of the counterparty. On a
daily basis, the Advisor monitors the value of the collateral,
including accrued interest, to ensure it is at least equal to the
amounts owed to the Funds under each repurchase agreement.
(K) Directed Brokerage -- The Funds direct certain portfolio trades to
brokers who, in turn, pay a portion of the Funds' expenses not
attributable to the Advisor or its affiliates. Such amounts are
included in Expense Offsets reported in the Funds' Statements of
Operations and in Note 4.
(L) Earnings Credit Arrangements -- Credits are earned on positive cash
balances maintained in custodian accounts. These credits serve to
reduce the custodian's fees incurred by certain Funds and are included
in Expense Offsets reported in the Funds' Statements of Operations and
in Note 4.
(M) Securities Lending -- The Funds have entered into a Securities Lending
Agreement (the "Agreement") with Deutsche Bank. Under the terms of the
Agreement, the Funds may lend portfolio securities to qualified
institutional borrowers in order to earn additional income. The
Agreement requires that loans are collateralized at all times by cash
equal to at least 102% of the market value of any loaned securities,
plus accrued interest.
At June 30, 2003, Strong Discovery Fund, Strong Large Cap Growth Fund,
Strong Enterprise Fund and Strong Growth Fund had securities with a
market value of $13,172,789, $27,664,700, $29,767,155 and $70,683,224,
respectively, on loan and had received $13,616,491, $28,500,650,
$30,865,301 and $72,528,472, respectively, in collateral (both
included within Investments in the Statements of Assets and
Liabilities). Amounts earned as interest on investments of cash
collateral, net of rebates and other securities lending expenses, are
included in Interest in the Statements of Operations. For the six
months ended June 30, 2003, this securities lending income totaled
$6,892, $7,919, $13,125 and $21,100, respectively.
The three primary risks associated with securities lending are: a
borrower defaulting on its obligation to return the securities loaned
resulting in a shortfall on the posted collateral; a principal loss
arising from the lending agent's investment of cash collateral; and
the inability of the lending Fund to recall a security in time to
exercise valuable voting rights or sell the security.
(N) Expenses -- The Funds and other affiliated Strong Funds contract for
certain services on a collective basis. The majority of the expenses
are directly identifiable to an individual Fund. Expenses that are not
readily identifiable to a specific Fund will be allocated in such a
manner as deemed equitable, taking into consideration, among other
things, the nature and type of expense and the relative sizes of the
Strong Funds.
(O) Use of Estimates -- The preparation of financial statements in
conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and
assumptions that affect the reported amounts in these financial
statements. Actual results could differ from those estimates.
(P) 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 premiums and discounts on
the interest method. Income, expenses (other than expenses
attributable to a specific class), and realized and unrealized gains
or losses on investments are allocated to each class of shares based
on its relative shares outstanding.
(Q) Redemption Fees -- Investor Class shares of Strong Large Company
Growth Fund held for less than one year are subject to a redemption
fee of 1.00%, based on the redeemed share's market value. Redemption
fees are paid directly to the Fund. The amount collected for the six
months ended June 30, 2003 was $3,621.
49
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
3. Related Party Transactions
The Advisor provides investment advisory and related services to the Funds.
Strong Investor Services, Inc. (the "Administrator"), an affiliate of the
Advisor, provides administrative, transfer agent and related services to
the Funds. Certain officers and directors of the Funds are affiliated with
the Advisor and the Administrator. Investment advisory and administration
fees, which are established by terms of the advisory and administration
agreements, are based on the following annualized rates of the average
daily net assets of the respective Fund:
Administrative Fees
----------------------------------------------------------------------
Advisory Fees Investor Class Institutional Class Advisor Class Class C Class K
------------- -------------- ------------------- ------------- ------- -------
Strong Blue Chip Fund 0.50% 0.30% * * * *
Strong Discovery Fund 0.75% 0.25% * * * *
Strong Endeavor Fund 0.75%/(1)/ 0.30% * * * *
Strong Large Cap Growth Fund 0.60%/(2)/ 0.30% * * * *
Strong Large Company Growth Fund 0.75%/(1)/ 0.30% * * * *
Strong U.S. Emerging Growth Fund 0.75%/(1)/ 0.30% * * * *
Strong Enterprise Fund 0.75%/(1)/ 0.30% * 0.30% * 0.25%
Strong Growth 20 Fund 0.75%/(1)/ 0.30% * 0.30% * *
Strong Growth Fund 0.75%/(1)/ 0.30% 0.02% 0.30% 0.30% 0.25%
* Does not offer share class.
/(1)/ The investment advisory fees are 0.75% for the first $4 billion in
net assets, 0.725% for the next $2 billion, and 0.70% for net assets
$6 billion and above.
/(2)/ The investment advisory fees are 0.60% of the first $35 million in
net assets and 0.55% for net assets $35 million and above.
The Funds' Advisor and/or Administrator may voluntarily waive or absorb
certain expenses at their discretion. The Funds' Advisor and/or
Administrator has contractually agreed to waive its fees and/or absorb
expenses for the Investor Class shares of the Strong Large Company Growth
Fund to keep Total Annual Operating Expenses at no more than 1.50%. This
agreement may only be terminated by the Board of Directors of the Funds.
The Advisor and/or Administrator has contractually agreed to waive and/or
absorb expenses until May 1, 2004, to keep Total Annual Operating Expenses
of the Investor Class of Strong Endeavor Fund at no more than 2.00%, the
Investor Class of Strong Enterprise Fund at no more than 2.00%, Class K of
Strong Enterprise Fund at no more than 1.20% and Class K of Strong Growth
Fund at no more than 0.99%. Transfer agent and related service fees for the
Investor Class are paid at a rate of $27.00 for each open shareholder
account and $4.20 for each closed shareholder account. Transfer agent and
related service fees for the Institutional Class, Advisor Class, Class C
and Class K are paid at an annual rate of 0.015%, 0.20%, 0.20% and 0.20%,
respectively, of the average daily net asset value of each respective
class. The Administrator also allocates to each Fund certain charges or
credits resulting from transfer agency banking activities based on each
Class' level of subscription and redemption activity. Transfer Agency
Banking Charges allocated to the Funds by the Administrator, if any, are
included in Other Expenses in the Funds' Statements of Operations. Transfer
Agency Banking Credits allocated by the Administrator, if any, serve to
reduce the transfer agent expenses incurred by the Funds and are included
in Expense Offsets in the Funds' Statements of Operations. The
Administrator is also compensated for certain other out-of-pocket expenses
related to transfer agent services.
Next Century Growth Investors, LLC ("Next Century Growth"), an affiliate of
the Advisor, manages the investments of Strong U.S. Emerging Growth Fund
under a subadvisory agreement with the Advisor. Next Century Growth is
compensated by the Advisor (not the Fund) and bears all of its own expenses
in providing subadvisory services.
Strong Endeavor Fund, Strong Large Company Growth Fund, Strong Enterprise
Fund, Strong Growth 20 Fund and Strong Growth Fund have adopted a Rule
12b-1 distribution and service plan under the 1940 Act on behalf of the
Investor Class shares of Strong Endeavor Fund and Strong Large Company
Growth Fund, the Advisor Class shares of Strong Enterprise Fund, Strong
Growth 20 Fund and Strong Growth Fund and the Class C shares of Strong
Growth Fund. Under the plan, Strong Investments, Inc. (the "Distributor,"
and an affiliate of the Advisor) is paid an annual rate of 0.25% of the
average daily net assets of the Investor Class shares and the Advisor Class
shares and 1.00% for Class C shares as compensation for services provided
and expenses incurred, including amounts paid to brokers or dealers, in
connection with the sale of each Class' shares. See Note 4.
Strong Growth Fund's Class C shares have a 1.00% contingent deferred sales
charge if shares are sold within one year of their original purchase date.
For the six months ended June 30, 2003, the Distributor received no
aggregate contingent deferred sales charges from the redemption of Class C
shares for Strong Growth Fund. Sales charges are not an expense of the
Funds and are not reflected in the financial statements of the Funds. Sales
charges may be waved in limited circumstances.
The Funds may invest cash in money market funds managed by the Advisor,
subject to certain limitations.
50
- --------------------------------------------------------------------------------
Certain information regarding related party transactions, excluding the
effects of waivers and absorptions, for the six months ended June 30, 2003,
is as follows:
Payable to/
(Receivable from)
Advisor or Shareholder Servicing Transfer Agency Unaffiliated
Administrator at and Other Expenses Banking Directors'
June 30, 2003 Paid to Administrator Charges/(Credits) Fees
----------------- --------------------- ----------------- ------------
Strong Blue Chip Fund $ 123,773 $ 686,776 $ 9,154 $ 4,724
Strong Discovery Fund 37,618 242,123 884 2,618
Strong Endeavor Fund 2,431 13,720 16 323
Strong Large Cap Growth Fund 179,407 1,018,979 13,385 13,462
Strong Large Company Growth Fund 2,335 16,168 1,853 599
Strong U.S. Emerging Growth Fund 65,167 245,622 1,397 1,426
Strong Enterprise Fund 289,232 1,007,658 10,108 5,311
Strong Growth 20 Fund 139,196 745,803 7,084 4,698
Strong Growth Fund 585,236 2,892,854 26,852 31,038
4. Expenses and Expense Offsets
For the six months ended June 30, 2003, the class specific expenses are as
follows:
Administrative Shareholder Reports to
Fees Servicing Costs Shareholders 12b-1 Fees Other
-------------- --------------- ------------ ---------- --------
Strong Enterprise Fund
Investor Class $ 324,593 $ 989,400 $ 224,413 $ -- $ 12,209
Advisor Class 1,984 1,344 321 1,653 31
Class K 16,736 13,417 1,073 -- 1,365
Strong Growth 20 Fund
Investor Class 364,237 736,686 166,684 -- 9,475
Advisor Class 9,589 6,411 1,034 7,991 314
Strong Growth Fund
Investor Class 1,893,462 2,829,513 383,034 -- 18,299
Institutional Class 22,261 17,267 101,655 -- 13,275
Advisor Class 15,042 10,079 1,777 12,535 228
Class C 225 154 180 755 18
Class K 37,810 30,135 7 -- 737
51
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
For the six months ended June 30, 2003, the expense offsets are as follows:
Expense Directed
Waivers and Brokerage Earnings
Absorptions Credits Credits
----------- ---------- ----------
Strong Blue Chip Fund $ -- $ (45,755) $ (143)
Strong Discovery Fund -- (28,755) (168)
Strong Endeavor Fund (22,754) (909) (2)
Strong Large Cap Growth Fund -- (63,181) (3,633)
Strong Large Company Growth Fund (40,413) -- (10)
Strong U.S. Emerging Growth Fund (36,854) (7,474) (342)
Strong Enterprise Fund
Investor Class (292,992) -- --
Advisor Class -- -- --
Class K (6,829) -- --
Fund Level -- (27,080) (323)
Strong Growth 20 Fund
Investor Class (43,872) -- --
Advisor Class -- -- --
Fund Level -- (27,061) (929)
Strong Growth Fund
Investor Class -- -- --
Institutional Class -- -- --
Advisor Class -- -- --
Class C (4) -- --
Class K (37,755) -- --
Fund Level -- (88,144) (1,473)
5. Investments in Affiliates
Affiliated issuers, as defined under the 1940 Act, include any fund in the
Strong Family of Funds and any issuer in which the Fund's holdings of an
issuer represent 5% or more of the outstanding voting securities of the
issuer. A summary of transactions in the securities of these issuers during
the six months ended June 30, 2003 is as follows:
Balance of Gross Gross Sales Balance of Value Dividend Income
Shares Held Purchases and Shares Held June 30, Jan. 1, 2003 -
Jan. 1, 2003 and Additions Reductions June 30, 2003 2003 June 30, 2003
------------ ------------- ------------ ------------- -------- ---------------
Strong Discovery Fund
---------------------
Strong Heritage Money Fund -
Institutional Class 1,000,000 -- (1,000,000) -- $ -- $ 5,291
Strong Large Cap Growth Fund
----------------------------
Strong Heritage Money Fund -
Institutional Class 6,200,000 -- (6,200,000) -- -- 1,113
Strong Growth Fund
------------------
Strong Heritage Money Fund -
Institutional Class 12,700,000 -- (12,700,000) -- -- 50,219
52
- --------------------------------------------------------------------------------
6. Capital Share Transactions
Strong Blue Chip Fund Strong Discovery Fund
--------------------------------- --------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002 June 30, 2003 Dec. 31, 2002
---------------- ------------- ---------------- --------------
(Unaudited) (Unaudited)
Capital Share Transactions of Each of the
Funds Were as Follows:
Proceeds from Shares Sold $ 26,829,996 $ 58,579,917 $ 35,410,764 $ 106,826,156
Proceeds from Reinvestment of Distributions -- -- -- 4,008,647
Payment for Shares Redeemed (64,057,213) (101,599,557) (38,395,150) (112,742,042)
---------------- ------------- ---------------- --------------
Net Increase (Decrease) in Net Assets
from Capital Share Transactions $ (37,227,217) $ (43,019,640) $ (2,984,386) $ (1,907,239)
================ ============= ================ ==============
Transactions in Shares of Each of the
Funds Were as Follows:
Sold 3,084,425 5,467,305 2,407,960 6,929,360
Issued in Reinvestment of Distributions -- -- -- 235,942
Redeemed (7,260,945) (9,308,147) (2,624,870) (7,318,812)
---------------- ------------- ---------------- --------------
Net Increase (Decrease) in Shares (4,176,520) (3,840,842) (216,910) (153,510)
================ ============= ================ ==============
Strong Endeavor Fund Strong Large Cap Growth Fund
--------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002 June 30, 2003 Dec. 31, 2002
---------------- ------------- ---------------- --------------
(Unaudited) (Unaudited)
Capital Share Transactions of Each of the
Funds Were as Follows:
Proceeds from Shares Sold $ 2,010,130 $ 2,639,463 $ 96,054,603 $ 92,753,828
Proceeds from Reinvestment of Distributions -- -- -- --
Payment for Shares Redeemed (1,241,361) (3,433,944) (114,397,959) (206,294,132)
---------------- ------------- ---------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ 768,769 $ (794,481) $ (18,343,356) $ (113,540,304)
================ ============= ================ ==============
Transactions in Shares of Each of the
Funds Were as Follows:
Sold 267,253 297,527 5,567,833 5,153,796
Issued in Reinvestment of Distributions -- -- -- --
Redeemed (166,530) (400,627) (6,639,645) (10,941,355)
---------------- ------------- ---------------- --------------
Net Increase (Decrease) in Shares 100,723 (103,100) (1,071,812) (5,787,559)
================ ============= ================ ==============
53
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
Strong Large Company
Growth Fund
----------------------------------------------------
Six Months Ended Period Ended Year Ended
June 30, 2003 Dec. 31, 2002 Sept. 30, 2002
---------------- -------------- ---------------
(Unaudited)
Capital Share Transactions of
the Fund Were as Follows:
Proceeds from Shares Sold $ 14,720,357 $ 4,988,912 $ 5,920,297
Proceeds from Reinvestment
of Distributions 12,085 66,475 607,929
Proceeds from Redemption fees 3,621 -- --
Payment for Shares Redeemed (5,408,932) (2,734,805) (17,465,133)
---------------- -------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ 9,327,131 $ 2,320,582 $ (10,936,907)
================ ============== ==============
Transactions in Shares of Each of the
Fund Were as Follows:
Sold 1,287,021 470,973 467,109
Issued in Reinvestment of Distributions 1,118 6,242 49,733
Redeemed (491,282) (248,984) (1,466,404)
---------------- -------------- --------------
Net Increase (Decrease) in Shares 796,857 228,231 (949,562)
================ ============= ==============
Strong U.S. Emerging Growth Fund
-------------------------------
Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002
---------------- -------------
(Unaudited)
Capital Share Transactions of the Fund
Were as Follows:
Proceeds from Shares Sold $ 30,834,181 $ 120,177,180
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (26,836,376) (116,020,955)
---------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ 3,997,805 $ 4,156,225
================ =============
Transactions in Shares of the Fund
Were as Follows:
Sold 3,007,722 9,702,326
Issued in Reinvestment of Distributions -- --
Redeemed (2,649,670) (9,562,612)
---------------- -------------
Net Increase (Decrease) in Shares of the Fund 358,052 139,714
================ =============
54
- --------------------------------------------------------------------------------
Strong Enterprise Fund
--------------------------------
Six Months Ended Year Ended
June 30, 2003 Dec. 31, 2002
---------------- -------------
(Unaudited)
Capital Share Transactions of Each Class of
Shares of the Fund Were as Follows:
INVESTOR CLASS
Proceeds from Shares Sold $ 27,840,482 $ 101,776,889
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (44,623,157) (148,882,956)
---------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions (16,782,675) (47,106,067)
ADVISOR CLASS
Proceeds from Shares Sold 329,630 849,133
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (138,483) (481,554)
---------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 191,147 367,579
CLASS K
Proceeds from Shares Sold 11,249,188 4,310,980
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (949,329) (371,572)
---------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 10,299,859 3,939,408
---------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ (6,291,669) $ (42,799,080)
================ =============
Transactions in Shares of Each Class of
the Fund Were as Follows:
INVESTOR CLASS
Sold 1,685,336 5,339,599
Issued in Reinvestment of Distributions -- --
Redeemed (2,735,391) (8,049,574)
---------------- -------------
Net Increase (Decrease) in Shares (1,050,055) (2,709,975)
================ =============
ADVISOR CLASS
Sold 19,140 44,794
Issued in Reinvestment of Distributions -- --
Redeemed (8,377) (26,641)
---------------- -------------
Net Increase (Decrease) in Shares 10,763 18,153
================ =============
CLASS K
Sold 703,001 270,110
Issued in Reinvestment of Distributions -- --
Redeemed (56,290) (23,597)
---------------- -------------
Net Increase (Decrease) in Shares 646,711 246,513
================ =============
55
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
Strong Growth 20 Fund
-------------------------------
Six Months
Ended Year Ended
June 30, 2003 Dec. 31, 2002
------------- --------------
(Unaudited)
Capital Share Transactions of Each Class of
Shares of the Fund Were as Follows:
INVESTOR CLASS
Proceeds from Shares Sold $ 194,290,209 $ 37,975,224
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (133,290,310) (119,329,093)
------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 60,999,899 (81,353,869)
ADVISOR CLASS
Proceeds from Shares Sold 591,759 2,702,059
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (1,074,680) (3,312,180)
------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions (482,921) (610,121)
------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ 60,516,978 $ (81,963,990)
============= ==============
Transactions in Shares of Each Class of
the Fund Were as Follows:
INVESTOR CLASS
Sold 18,592,500 3,076,476
Issued in Reinvestment of Distributions -- --
Redeemed (12,775,830) (9,577,471)
------------- --------------
Net Increase (Decrease) in Shares 5,816,670 (6,500,995)
============= ==============
ADVISOR CLASS
Sold 55,446 218,805
Issued in Reinvestment of Distributions -- --
Redeemed (102,407) (279,312)
------------- --------------
Net Increase (Decrease) in Shares (46,961) (60,507)
============= ==============
56
- -------------------------------------------------------------------------------
Strong Growth Fund
-------------------------------
Six Months
Ended Year Ended
June 30, 2003 Dec. 31, 2002
------------- --------------
(Unaudited)
Capital Share Transactions of Each Class of
Shares of the Fund Were as Follows:
INVESTOR CLASS
Proceeds from Shares Sold $ 118,486,992 $ 212,362,800
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (153,804,796) (501,568,269)
------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions (35,317,804) (289,205,469)
INSTITUTIONAL CLASS
Proceeds from Shares Sold 45,894,311 176,034,058
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (9,043,731) (15,602,302)
------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 36,850,580 160,431,756
ADVISOR CLASS
Proceeds from Shares Sold 1,892,076 4,515,364
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (1,796,068) (5,576,741)
------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 96,008 (1,061,377)
CLASS C
Proceeds from Shares Sold 159,871 100,000
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed -- --
------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 159,871 100,000
CLASS K
Proceeds from Shares Sold 27,724,393 15,492,888
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (2,274,008) (1,625,166)
------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 25,450,385 13,867,722
------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ 27,239,040 $ (115,867,368)
============= ==============
57
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
Strong Growth Fund
-------------------------------
Six Months
Ended Year Ended
June 30, 2003 Dec. 31, 2002
------------- --------------
(Unaudited)
Transactions in Shares of Each Class of
the Fund Were as Follows:
INVESTOR CLASS
Sold 8,629,281 13,789,094
Issued in Reinvestment of Distributions -- --
Redeemed (11,261,094) (33,083,023)
------------- --------------
Net Increase (Decrease) in Shares (2,631,813) (19,293,929)
============= ==============
INSTITUTIONAL CLASS
Sold 3,276,156 11,454,780
Issued in Reinvestment of Distributions -- --
Redeemed (623,870) (1,053,015)
------------- --------------
Net Increase (Decrease) in Shares 2,652,286 10,401,765
============= ==============
ADVISOR CLASS
Sold 139,392 292,723
Issued in Reinvestment of Distributions -- --
Redeemed (134,062) (362,829)
------------- --------------
Net Increase (Decrease) in Shares 5,330 (70,106)
============= ==============
CLASS C
Sold 11,308 7,441
Issued in Reinvestment of Distributions -- --
Redeemed -- --
------------- --------------
Net Increase (Decrease) in Shares 11,308 7,441
============= ==============
CLASS K
Sold 1,995,174 1,111,771
Issued in Reinvestment of Distributions -- --
Redeemed (165,277) (125,340)
------------- --------------
Net Increase (Decrease) in Shares 1,829,897 986,431
============= ==============
58
- --------------------------------------------------------------------------------
7. Line of Credit
The Strong Funds have established a line of credit agreement ("LOC") with
certain financial institutions, which expires October 10, 2003, 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 Funds' prospectus. Principal and interest on each borrowing under the
LOC are due not more than 45 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 0.09% per annum is incurred on the
unused portion of the LOC and is allocated to all participating Strong
Funds. There were minimal borrowings under the LOC. At June 30, 2003, there
were no outstanding borrowings by the Funds under the LOC.
8. Investment Transactions
The aggregate purchases and sales of long-term securities during the six
months ended June 30, 2003, were as follows:
Purchases Sales
--------------- ---------------
Strong Blue Chip Fund $ 299,051,111 $ 325,357,201
Strong Discovery Fund 221,759,467 211,703,740
Strong Endeavor Fund 5,567,151 4,818,290
Strong Large Cap Growth Fund 733,465,887 717,490,891
Strong Large Company Growth Fund 32,122,599 22,782,262
Strong U.S. Emerging Growth Fund 40,220,778 37,883,674
Strong Enterprise Fund 293,911,598 297,973,014
Strong Growth 20 Fund 518,072,585 445,510,692
Strong Growth Fund 1,304,256,009 1,229,159,567
There were no purchases or sales of long-term U.S. government securities
during the six months ended June 30, 2003.
9. Income Tax Information
The following information for the Funds is presented on an income tax basis
as of June 30, 2003:
Net Unrealized
Gross Gross Appreciation/
Cost of Unrealized Unrealized (Depreciation)
Investments Appreciation (Depreciation) on Investments
-------------- -------------- -------------- --------------
Strong Blue Chip Fund $ 167,696,338 $ 17,501,213 $ (601,981) $ 16,899,232
Strong Discovery Fund 161,983,634 10,895,616 (2,265,341) 8,630,275
Strong Endeavor Fund 4,630,521 422,519 (51,321) 371,198
Strong Large Cap Growth Fund 635,682,566 55,672,407 (2,471,594) 53,200,813
Strong Large Company Growth Fund 33,352,929 2,050,672 (212,174) 1,838,498
Strong U.S. Emerging Growth Fund 55,415,091 19,182,610 (281,978) 18,900,632
Strong Enterprise Fund 262,369,080 31,329,049 (4,316,984) 27,012,065
Strong Growth 20 Fund 255,147,318 30,082,963 (852,476) 29,230,487
Strong Growth Fund 1,503,093,098 300,344,254 (6,492,245) 293,852,009
59
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
The difference between cost amounts for financial statement and federal
income tax purposes is due primarily to timing differences in recognizing
certain gains and losses on security transactions.
The capital loss carryovers (expiring in varying amounts through 2010) as
of December 31, 2002, and tax basis post-October losses as of December 31,
2002, which are not recognized for tax purposes until the first day of the
following fiscal year are:
Net Capital
Loss Post-October
Carryovers Losses
--------------- ------------
Strong Blue Chip Fund $ 148,316,882 $ 19,188,881
Strong Discovery Fund 10,213,054 2,813,003
Strong Endeavor Fund 2,282,631 --
Strong Large Cap Growth Fund 529,198,023 3,123,094
Strong Large Company Growth Fund 9,760,514 238,951
Strong U.S. Emerging Growth Fund 66,963,119 1,378,784
Strong Enterprise Fund 359,801,272 6,101,892
Strong Growth 20 Fund 400,383,836 5,491,494
Strong Growth Fund 1,024,645,734 10,651,183
10. Special Meeting of Shareholders of Strong Advisor Mid Cap Growth Fund
On August 1, 2003, the Strong Advisor Mid Cap Growth Fund's and Strong
Growth Fund's Board of Directors approved the reorganization of the Strong
Advisor Mid Cap Growth Fund into the Strong Growth Fund, subject to
shareholder approval at a meeting scheduled for October 31, 2003. Effective
after the close of the market on August 22, 2003 the Strong Advisor Mid Cap
Growth Fund is closed to new investors.
60
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
STRONG BLUE CHIP FUND
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Oct. 31, Oct. 31, Oct. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(d)/ 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 8.62 $ 12.36 $ 16.56 $ 20.99 $ 18.10 $ 13.24 $ 10.39
Income From Investment Operations:
Net Investment Income (Loss) (0.03) (0.08) (0.06) (0.01) (0.09) (0.04) 0.10
Net Realized and Unrealized Gains
(Losses) on Investments 0.88 (3.66) (4.14) (3.42) 2.98 4.90 2.86
- ------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.85 (3.74) (4.20) (3.43) 2.89 4.86 2.96
Less Distributions:
From Net Investment Income -- -- -- -- -- (0.00)/(c)/ (0.11)
From Net Realized Gains -- -- -- (1.00) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- (1.00) -- (0.00)/(c)/ (0.11)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.47 $ 8.62 $ 12.36 $ 16.56 $ 20.99 $ 18.10 $ 13.24
====================================================================================================================================
Ratios and Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return +9.9% -30.3% -25.4% -16.4% +16.0% +36.7% +28.6%
Net Assets, End of Period (In Millions) $ 184 $ 203 $ 339 $ 499 $ 616 $ 485 $ 90
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.8%* 1.6% 1.4% 1.1%* 1.1% 1.2% 1.3%
Ratio of Expenses to Average Net Assets 1.8%* 1.6% 1.4% 1.1%* 1.1% 1.2% 0.6%
Ratio of Net Investment Income (Loss)
to Average Net Assets (0.7%)* (0.7%) (0.4%) (0.2%)* (0.5%) (0.3%) 0.7%
Portfolio Turnover Rate 180.2% 214.0% 203.9% 21.2% 67.9% 75.4% 46.5%
STRONG DISCOVERY FUND
- --------------------------------------------------------------------------------
Period Ended
---------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000 1999 1998
- -------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 14.42 $ 16.84 $ 16.39 $ 18.64 $ 17.95 $ 17.00
Income From Investment Operations:
Net Investment Income (Loss) (0.03) (0.06) (0.08) 0.06 (0.17) (0.07)
Net Realized and Unrealized Gains
(Losses) on Investments 1.85 (1.91) 0.76 0.51 1.08 1.26
- -------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.82 (1.97) 0.68 0.57 0.91 1.19
Less Distributions:
From Net Investment Income -- -- -- (0.04) -- --
From Net Realized Gains -- (0.45) (0.23) (2.78) (0.22) (0.24)
- -------------------------------------------------------------------------------------------------------------------
Total Distributions -- (0.45) (0.23) (2.82) (0.22) (0.24)
- -------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 16.24 $ 14.42 $ 16.84 $ 16.39 $ 18.64 $ 17.95
===================================================================================================================
Ratios and Supplemental Data
- -------------------------------------------------------------------------------------------------------------------
Total Return +12.6% -12.1% +4.2% +4.0% +5.3% +7.0%
Net Assets, End of Period (In Millions) $ 147 $ 133 $ 158 $ 165 $ 187 $ 322
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.5%* 1.5% 1.5% 1.5% 1.4% 1.3%
Ratio of Expenses to Average Net Assets 1.5%* 1.5% 1.5% 1.5% 1.4% 1.3%
Ratio of Net Investment Income (Loss) to
Average Net Assets (0.5%)* (0.4%) (0.5%) 0.3% (0.7%) (0.4%)
Portfolio Turnover Rate 169.2% 420.0% 501.7% 481.8% 214.0% 185.9%
* 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, 2003 (unaudited).
(c) Amount calculated is less than $0.005.
(d) In 2000, the Fund changed its fiscal year-end from October to December.
See Notes to Financial Statements.
61
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ENDEAVOR FUND
- --------------------------------------------------------------------------------
Period Ended
----------------------------------------
June 30, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001/(e)/
- -------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 7.03 $ 9.94 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.03) (0.11) (0.06)/(c)/
Net Realized and Unrealized Gains (Losses) on
Investments 1.00 (2.80) 0.00/(d)/
- -------------------------------------------------------------------------------------------
Total from Investment Operations 0.97 (2.91) (0.06)
Less Distributions:
From Net Investment Income -- -- --
- -------------------------------------------------------------------------------------------
Total Distributions -- -- --
- -------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 8.00 $ 7.03 $ 9.94
===========================================================================================
Ratios and Supplemental Data
- -------------------------------------------------------------------------------------------
Total Return +13.8% -29.3% -0.6%
Net Assets, End of Period (In Millions) $ 5 $ 4 $ 6
Ratio of Expenses to Average Net Assets before
Expense Offsets 3.0%* 2.7% 3.1%*
Ratio of Expenses to Average Net Assets 1.9%* 1.9% 2.2%*
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.0%)* (1.2%) (1.2%)*
Portfolio Turnover Rate 117.1% 416.8% 391.8%
STRONG LARGE CAP GROWTH FUND
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Oct. 31, Oct. 31, Oct. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(f)/ 2000 1999 1998
- -------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 16.51 $ 23.55 $ 34.77 $ 45.49 $ 41.52 $ 29.10 $ 32.66
Income From Investment Operations:
Net Investment Income (Loss) (0.04) (0.08) (0.02) 0.01 (0.16) (0.03) 0.13
Net Realized and Unrealized Gains
(Losses) on Investments 2.29 (6.96) (11.20) (4.81) 12.01 12.84 3.44
- --------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.25 (7.04) (11.22) (4.80) 11.85 12.81 3.57
Less Distributions:
From Net Investment Income -- -- (0.00)/(d)/ -- -- -- (0.14)
In Excess of Net Investment Income -- -- -- -- -- (0.01) --
From Net Realized Gains -- -- -- (5.92) (7.88) (0.38) (6.89)
In Excess of Net Realized Gains -- -- -- -- -- -- (0.10)
- -------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.00)/(d)/ (5.92) (7.88) (0.39) (7.13)
- -------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 18.76 $ 16.51 $ 23.55 $ 34.77 $ 45.49 $ 41.52 $ 29.10
===============================================================================================================================
Ratios and Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------------
Total Return +13.6% -29.9% -32.3% -10.3% +28.1% +44.3% +13.6%
Net Assets, End of Period (In Millions) $ 649 $ 589 $ 976 $ 1,574 $ 1,769 $ 1,253 $ 863
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.3%* 1.2% 1.1% 1.0%* 1.0% 1.0% 1.0%
Ratio of Expenses to Average Net Assets 1.3%* 1.2% 1.1% 1.0%* 1.0% 1.0% 1.0%
Ratio of Net Investment Income (Loss)
to Average Net Assets (0.4%)* (0.4%) (0.1%) 0.1%* (0.4%) (0.1%) 0.4%
Portfolio Turnover Rate 123.6% 443.2% 468.7% 68.6% 455.0% 402.3% 267.8%
* 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, 2003 (unaudited).
(c) Net investment loss per share represents net investment loss divided by
the average shares outstanding throughout the period.
(d) Amount calculated is less than $0.005.
(e) For the period from April 9, 2001 (public launch date) to December 31,
2001.
(f) In 2000, the Fund changed its fiscal year-end from October to December.
See Notes to Financial Statements.
62
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG LARGE COMPANY GROWTH FUND
- --------------------------------------------------------------------------------
Period Ended
-------------------------------------------------------------------------------------
June 30, Dec. 31, Sep. 30, Sep. 30, Sep. 30, Sep. 30, Sep. 30,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002/(f)/ 2002/(d)/ 2001 2000 1999 1998/(e)/
- --------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 10.66 $ 10.25 $ 12.17 $ 19.15 $ 13.12 $ 9.80 $ 10.00
Income From Investment Operations:
Net Investment Income (0.01) (0.00)/(c)/ 0.31 0.32 0.29 0.18 0.21
Net Realized and Unrealized Gains
(Losses) on Investments 1.32 0.45 (1.93) (5.09) 6.26 3.33 (0.21)
- --------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.31 0.45 (1.62) (4.77) 6.55 3.51 --
Less Distributions:
From Net Investment Income (0.01) (0.04) (0.27) (0.32) (0.27) (0.19) (0.20)
From Net Realized Gains -- -- (0.03) (1.89) (0.25) -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.01) (0.04) (0.30) (2.21) (0.52) (0.19) (0.20)
- --------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 11.96 $ 10.66 $ 10.25 $ 12.17 $ 19.15 $ 13.12 $ 9.80
================================================================================================================================
Ratios and Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------------
Total Return/(e)/ +12.3% +4.4% -13.7% -26.2% +50.7% +36.0% -0.1%
Net Assets, End of Period (In Millions) $ 34 $ 21 $ 18 $ 33 $ 37 $ 9 $ 2
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.8%* 1.9%* 1.7% 1.6% 1.6% 3.1% 11.3%*
Ratio of Expenses to Average Net Assets 1.5%* 1.3%* 1.5% 1.5% 1.5% 1.5% 1.5%*
Ratio of Net Investment Income (Loss)
to Average Net Assets (0.3%)* 0.2%* 2.3% 2.2% 1.8% 1.5% 2.6%*
Portfolio Turnover Rate 93.7% 71.8% 311.3% 285.3% 180.8% 120.2% 147.6%
STRONG U.S. EMERGING GROWTH FUND
- --------------------------------------------------------------------------------
Period Ended
----------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 10.02 $ 15.17 $ 19.17 $ 19.59 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.09) (0.24) (0.23) (0.19) (0.11)
Net Realized and Unrealized Gains
(Losses) on Investments 2.05 (4.91) (3.77) 0.22 9.99
- -----------------------------------------------------------------------------------------------------
Total from Investment Operations 1.96 (5.15) (4.00) 0.03 9.88
Less Distributions:
From Net Realized Gains -- -- -- (0.45) (0.29)
- -----------------------------------------------------------------------------------------------------
Total Distributions -- -- -- (0.45) (0.29)
- -----------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 11.98 $ 10.02 $ 15.17 $ 19.17 $ 19.59
=====================================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------------
Total Return +19.6% -34.0% -20.9% +0.3% +98.9%
Net Assets, End of Period (In Millions) $ 74 $ 58 $ 86 $ 112 $ 36
Ratio of Expenses to Average Net Assets
before Expense Offsets 2.1%* 1.9% 1.6% 1.4% 1.9%
Ratio of Expenses to Average Net Assets 1.9%* 1.9% 1.6% 1.4% 1.8%
Ratio of Net Investment Income (Loss)
to Average Net Assets (1.9%)* (1.8%) (1.5%) (1.2%) (1.5%)
Portfolio Turnover Rate 61.9% 171.5% 168.2% 186.8% 281.1%
* 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, 2003 (unaudited).
(c) Amount calculated is less than $0.005.
(d) Effective September 5, 2002, Strong Capital Management, Inc. assumed the
investment advisory responsibilities from Rockhaven Asset Management, LLC.
(e) For the period from November 4, 1997 (public launch date) through
September 30, 1998.
(f) In 2002, the Fund changed its fiscal year-end from September to December.
See Notes to Financial Statements.
63
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ENTERPRISE FUND--INVESTOR CLASS
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000 1999 1998/(h)/
- -------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 15.90 $ 22.14 $ 28.37 $ 41.24 $ 14.74 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) (0.12) (0.28)/(c)/ (0.31) (0.28) (0.09) (0.01)
Net Realized and Unrealized Gains
(Losses) on Investments 2.56 (5.96) (5.92) (12.04) 27.43 4.75
- -------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.44 (6.24) (6.23) (12.32) 27.34 4.74
Less Distributions:
From Net Realized Gains -- -- -- (0.55) (0.84) (0.00)/(d)/
- -------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- (0.55) (0.84) (0.00)/(d)/
- -------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 18.34 $ 15.90 $ 22.14 $ 28.37 $ 41.24 $ 14.74
===================================================================================================================
Ratios and Supplemental Data
- -------------------------------------------------------------------------------------------------------------------
Total Return +15.4% -28.2% -22.0% -29.8% +187.8% +47.4%
Net Assets, End of Period (In Millions) $ 239 $ 224 $ 372 $ 575 $ 571 $ 11
Ratio of Expenses to Average Net Assets
before Expense Offsets 2.2%* 2.0% 1.8% 1.4% 1.4% 2.0%
Ratio of Expenses to Average Net Assets 2.0%* 2.0% 1.8% 1.4% 1.4% 2.0%
Ratio of Net Investment Income (Loss)
to Average Net Assets (1.5%)* (1.5%) (1.2%) (0.7%) (1.0%) (0.9%)
Portfolio Turnover Rate/(e)/ 129.4% 376.8% 629.8% 473.7% 178.1% 95.7%
STRONG ENTERPRISE FUND--ADVISOR CLASS
- --------------------------------------------------------------------------------
Period Ended
------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(f)/
- -------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 15.86 $ 22.04 $ 28.31 $ 51.32
Income From Investment Operations:
Net Investment Income (Loss) (0.08) (0.24)/(c)/ (0.21) (0.03)
Net Realized and Unrealized Gains
(Losses) on Investments 2.54 (5.94) (6.06) (22.43)
- -------------------------------------------------------------------------------------------
Total from Investment Operations 2.46 (6.18) (6.27) (22.46)
Less Distributions:
From Net Realized Gains -- -- -- (0.55)
- -------------------------------------------------------------------------------------------
Total Distributions -- -- -- (0.55)
- -------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 18.32 $ 15.86 $ 22.04 $ 28.31
===========================================================================================
Ratios and Supplemental Data
- -------------------------------------------------------------------------------------------
Total Return +15.5% -28.0% -22.2% -43.7%
Net Assets, End of Period (In Millions) $ 2 $ 1 $ 1 $ 0/(g)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.6%* 1.8% 2.1% 2.0%*
Ratio of Expenses to Average Net Assets 1.6%* 1.8% 2.1% 1.9%*
Ratio of Net Investment Income (Loss)
to Average Net Assets (1.1%)* (1.3%) (1.6%) (1.2%)*
Portfolio Turnover Rate/(e)/ 129.4% 376.8% 629.8% 473.7%
* 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, 2003 (unaudited).
(c) Net investment income (loss) per share represents net investment income
(loss) divided by the average shares outstanding throughout the period.
(d) Amount calculated is less than $0.005.
(e) Calculated on the basis of the Fund as a whole without distinguishing
between classes of shares issued.
(f) For the period from February 28, 2000 (public launch date) to
December 31, 2000.
(g) Amount is less than $500,000.
(h) For the period from October 1, 1998 (public launch date) to December 31,
1998.
See Notes to Financial Statements.
64
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG ENTERPRISE FUND--CLASS K
- --------------------------------------------------------------------------------
Period Ended
----------------------
June 30, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002/(f)/
- -----------------------------------------------------------------
Net Asset Value, Beginning of Period $ 15.94 $ 16.32
Income From Investment Operations:
Net Investment Income (Loss) (0.05) (0.04)/(c)/
Net Realized and Unrealized Gains
(Losses) on Investments 2.56 (0.34)
- -----------------------------------------------------------------
Total from Investment Operations 2.51 (0.38)
Less Distributions:
From Net Investment Income -- --
- -----------------------------------------------------------------
Total Distributions -- --
- -----------------------------------------------------------------
Net Asset Value, End of Period $ 18.45 $ 15.94
=================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------
Total Return +15.8% -2.3%
Net Assets, End of Period (In Millions) $ 16 $ 4
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.3%* 1.3%*
Ratio of Expenses to Average Net Assets 1.2%* 1.1%*
Ratio of Net Investment Income (Loss)
to Average Net Assets (0.7%)* (0.6%)*
Portfolio Turnover Rate/(d)/ 129.4% 376.8%
STRONG GROWTH 20 FUND--INVESTOR CLASS
- ----------------------------------------------------------------------
Period Ended
---------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 10.19 $ 14.74 $ 25.13 $ 30.63 $ 15.44 $ 11.31
Income From Investment Operations:
Net Investment Income (Loss) (0.08) (0.21) (0.15) (0.10) (0.08) (0.08)
Net Realized and Unrealized Gains
(Losses) on Investments 1.22 (4.34) (10.24) (3.05) 16.60 4.21
- ----------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.14 (4.55) (10.39) (3.15) 16.52 4.13
Less Distributions:
From Net Investment Income -- -- -- -- -- 0.00/(e)/
From Net Realized Gains -- -- -- (2.35) (1.33) --
- ----------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- (2.35) (1.33) 0.00/(e)/
- ----------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 11.33 $ 10.19 $ 14.74 $ 25.13 $ 30.63 $ 15.44
================================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Total Return +11.2% -30.9% -41.4% -10.3% +109.5% +36.5%
Net Assets, End of Period (In Millions) $ 270 $ 184 $ 361 $ 766 $ 466 $ 71
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.9%* 1.9% 1.5% 1.3% 1.4% 1.5%
Ratio of Expenses to Average Net Assets 1.8%* 1.9% 1.5% 1.3% 1.4% 1.5%
Ratio of Net Investment Income (Loss)
to Average Net Assets (1.6%)* (1.5%) (0.8%) (0.4%) (0.6%) (0.6%)
Portfolio Turnover Rate/(d)/ 189.6% 460.8% 658.7% 521.0% 432.3% 541.2%
* 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, 2003 (unaudited).
(c) Net investment income (loss) per share represents net investment income
(loss) divided by the average shares outstanding throughout the period.
(d) Calculated on the basis of the Fund as a whole without distinguishing
between classes of shares issued.
(e) Amount calculated is less than $0.005.
(f) For the period from September 3, 2002 (public launch date) to
December 31, 2002.
See Notes to Financial Statements.
65
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG GROWTH 20 FUND--ADVISOR CLASS
- --------------------------------------------------------------------------------
Period Ended
----------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(f)/
- -----------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 10.19 $ 14.69 $ 25.06 $ 36.61
Income From Investment Operations:
Net Investment Income (Loss) (0.07) (0.15) (0.12) (0.02)
Net Realized and Unrealized Gains
(Losses) on Investments 1.22 (4.35) (10.25) (9.18)
- -----------------------------------------------------------------------------------------
Total from Investment Operations 1.15 (4.50) (10.37) (9.20)
Less Distributions:
From Net Realized Gains -- -- -- (2.35)
- -----------------------------------------------------------------------------------------
Total Distributions -- -- -- (2.35)
- -----------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 11.34 $ 10.19 $ 14.69 $ 25.06
=========================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------
Total Return +11.3% -30.6% -41.4% -25.2%
Net Assets, End of Period (In Millions) $ 7 $ 7 $ 10 $ 5
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.6%* 1.6% 1.6% 2.0%*
Ratio of Expenses to Average Net Assets 1.6%* 1.6% 1.6% 1.9%*
Ratio of Net Investment Income (Loss)
to Average Net Assets (1.3%)* (1.2%) (0.9%) (1.0%)*
Portfolio Turnover Rate/(c)/ 189.6% 460.8% 658.7% 521.0%
STRONG GROWTH FUND--INVESTOR CLASS
- --------------------------------------------------------------------------------
Period Ended
----------------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000 1999 1998
- -----------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 13.21 $ 17.68 $ 27.05 $ 35.66 $ 23.25 $ 18.31
Income From Investment Operations:
Net Investment Income (Loss) (0.08)/(d)/ (0.18)/(d)/ (0.15) (0.17) (0.18) (0.13)
Net Realized and Unrealized Gains
(Losses) on Investments 2.00 (4.29) (9.15) (3.21) 17.08 5.07
- -----------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.92 (4.47) (9.30) (3.38) 16.90 4.94
Less Distributions:
From Net Realized Gains -- -- (0.07) (5.23) (4.49) (0.00)/(e)/
- -----------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.07) (5.23) (4.49) (0.00)/(e)/
- -----------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 15.13 $ 13.21 $ 17.68 $ 27.05 $ 35.66 $ 23.25
=======================================================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------
Total Return +14.5% -25.3% -34.4% -9.2% +75.1% +27.0%
Net Assets, End of Period (In Millions) $ 1,399 $ 1,256 $ 2,022 $ 3,411 $ 3,354 $ 1,835
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.6%* 1.6% 1.4% 1.2% 1.2% 1.3%
Ratio of Expenses to Average Net Assets 1.6%* 1.6% 1.4% 1.2% 1.2% 1.3%
Ratio of Net Investment Income (Loss)
to Average Net Assets (1.1%)* (1.2%) (0.7%) (0.6%) (0.8%) (0.7%)
Portfolio Turnover Rate/(c)/ 80.8% 248.5% 399.8% 366.3% 324.0% 248.6%
* 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, 2003 (unaudited).
(c) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
(d) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the period.
(e) Amount calculated is less than $0.005.
(f) For the period from February 28, 2000 (public launch date) to
December 31, 2000.
See Notes to Financial Statements.
66
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG GROWTH FUND--INSTITUTIONAL CLASS
- --------------------------------------------------------------------------------
Period Ended
-----------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(e)/
- ------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 13.48 $ 17.91 $ 27.17 $ 43.74
Income From Investment Operations:
Net Investment Income (Loss) (0.03)/(d)/ (0.08)/(d)/ (0.02) (0.01)
Net Realized and Unrealized Gains
(Losses) on Investments 2.04 (4.35) (9.17) (11.33)
- ------------------------------------------------------------------------------------------------
Total from Investment Operations 2.01 (4.43) (9.19) (11.34)
Less Distributions:
From Net Realized Gains -- -- (0.07) (5.23)
- ------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.07) (5.23)
- ------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 15.49 $ 13.48 $ 17.91 $ 27.17
================================================================================================
Ratios and Supplemental Data
- ------------------------------------------------------------------------------------------------
Total Return +14.9% -24.7% -33.8% -25.7%
Net Assets, End of Period (In Millions) $ 265 $ 195 $ 73 $ 18
Ratio of Expenses to Average Net Assets
before Expense Offsets 0.9%* 0.9% 0.9% 0.8%*
Ratio of Expenses to Average Net Assets 0.9%* 0.9% 0.9% 0.8%*
Ratio of Net Investment Income (Loss)
to Average Net Assets (0.5%)* (0.5%) (0.3%) (0.1%)*
Portfolio Turnover Rate/(c)/ 80.8% 248.5% 399.8% 366.3%
STRONG GROWTH FUND--ADVISOR CLASS
- --------------------------------------------------------------------------------
Period Ended
-----------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(e)/
- ------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 13.14 $ 17.58 $ 26.96 $ 43.74
Income From Investment Operations:
Net Investment Income (Loss) (0.07)/(d)/ (0.17)/(d)/ (0.15) (0.02)
Net Realized and Unrealized Gains
(Losses) on Investments 1.98 (4.27) (9.16) (11.53)
- ------------------------------------------------------------------------------------------------
Total from Investment Operations 1.91 (4.44) (9.31) (11.55)
Less Distributions:
From Net Realized Gains -- -- (0.07) (5.23)
- ------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.07) (5.23)
- ------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 15.05 $ 13.14 $ 17.58 $ 26.96
================================================================================================
Ratios and Supplemental Data
- ------------------------------------------------------------------------------------------------
Total Return +14.5% -25.3% -34.5% -26.2%
Net Assets, End of Period (In Millions) $ 11 $ 10 $ 14 $ 4
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.6%* 1.6% 1.6% 2.0%*
Ratio of Expenses to Average Net Assets 1.6%* 1.6% 1.6% 1.9%*
Ratio of Net Investment Income (Loss)
to Average Net Assets (1.1%)* (1.2%) (1.0%) (0.9%)*
Portfolio Turnover Rate/(c)/ 80.8% 248.5% 399.8% 366.3%
* 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, 2003 (unaudited).
(c) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
(d) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the period.
(e) For the period from February 28, 2000 (public launch date) to
December 31, 2000.
See Notes to Financial Statements.
67
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG GROWTH FUND--CLASS C
- --------------------------------------------------------------------------------
Period Ended
-------------------------
June 30, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002/(d)/
- --------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 13.21 $ 13.44
Income From Investment Operations:
Net Investment Income (Loss) (0.14)/(f)/ 0.00/(e)//(f)/
Net Realized and Unrealized Gains
(Losses) on Investments 2.00 (0.23)
- --------------------------------------------------------------------
Total from Investment Operations 1.86 (0.23)
Less Distributions:
From Net Investment Income -- --
- --------------------------------------------------------------------
Total Distributions -- --
- --------------------------------------------------------------------
Net Asset Value, End of Period $ 15.07 $ 13.21
====================================================================
Ratios and Supplemental Data
- --------------------------------------------------------------------
Total Return +14.1% -1.7%
Net Assets, End of Period (In Millions) $ 0/(g)/ $ 0/(g)/
Ratio of Expenses to Average Net Assets
before Expense Offsets 2.5%* 2.3%*
Ratio of Expenses to Average Net Assets 2.5%* 2.3%*
Ratio of Net Investment Income (Loss)
to Average Net Assets (2.1%)* 0.0%*/(e)/
Portfolio Turnover Rate/(c)/ 80.8% 248.5%
STRONG GROWTH FUND--CLASS K
- --------------------------------------------------------------------------------
Period Ended
-------------------------
June 30, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002/(h)/
- --------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 13.29 $ 13.53
Income From Investment Operations:
Net Investment Income (Loss) (0.04)/(f)/ (0.01)/(f)/
Net Realized and Unrealized Gains
(Losses) on Investments 2.02 (0.23)
- --------------------------------------------------------------------
Total from Investment Operations 1.98 (0.24)
Less Distributions:
From Net Investment Income -- --
- --------------------------------------------------------------------
Total Distributions -- --
- --------------------------------------------------------------------
Net Asset Value, End of Period $ 15.27 $ 13.29
====================================================================
Ratios and Supplemental Data
- --------------------------------------------------------------------
Total Return +14.9% -1.8%
Net Assets, End of Period (In Millions) $ 43 $ 13
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.2%* 1.3%*
Ratio of Expenses to Average Net Assets 1.0%* 1.0%*
Ratio of Net Investment Income (Loss)
to Average Net Assets (0.5%)* (0.7%)*
Portfolio Turnover Rate/(c)/ 80.8% 248.5%
* 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, 2003 (unaudited).
(c) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
(d) For the period from December 30, 2002 (public launch date) to
December 31, 2002.
(e) Amount calculated is less than $0.005 or 0.05%.
(f) Net investment income (loss) per share represents net investment income
(loss) divided by average shares outstanding throughout the period.
(g) Amount is less than $500,000.
(h) For the period from September 2, 2002 (public launch date) to
December 31, 2002.
See Notes to Financial Statements.
68
DIRECTORS AND OFFICERS
- --------------------------------------------------------------------------------
Richard S. Strong (indicated below by an asterisk*) is deemed an "interested
person" of the Fund as defined in the Investment Company Act of 1940 because of
his controlling ownership in the Advisor's parent company, Strong Financial
Corporation. Each officer and director holds the same position with the 27
registered open-end management investment companies consisting of 71 mutual
funds ("Strong Funds").
* Richard S. Strong (DOB 5-12-42), Director of the Strong Funds since
September 1981 and Chairman of the Board of the Strong Funds since October
1991.
Mr. Strong has been a Director of the Advisor since September 1981;
Chairman of the Advisor since October 1991; Chief Investment Officer of the
Advisor since January 1996; Security Analyst and Portfolio Manager of the
Advisor since 1985; Chief Executive Officer of the Advisor from 1974 to 1985;
Chairman of Strong Financial Corporation (holding company) since May 2001;
Director and Chairman of Strong Service Corporation (an investment advisor)
since 1995; and Director and Chairman of Strong Investor Services, Inc. (a
transfer agent and administrator), since July 2001. Mr. Strong founded the
Advisor in 1974 and has been in the investment management business since 1967.
Willie D. Davis (DOB 7-24-34), Director of the Strong Funds since July 1994.
Mr. Davis has been President and Chief Executive Officer of All Pro
Broadcasting, Inc., since 1977; Director of Wisconsin Energy Corporation
(formerly WICOR, Inc.) (a utility company), since 1990, Metro Goldwyn Mayer,
Inc. (an entertainment company), since 1998, Bassett Furniture Industries, Inc.,
since 1997, Checker's Drive-In Restaurants, Inc. (formerly Rally's Hamburgers,
Inc.), since 1994, Johnson Controls, Inc. (an industrial company), since 1992,
MGM Mirage (formerly MGM Grand, Inc.) (an entertainment/hotel company) since
1990, Dow Chemical Company since 1988, Sara Lee Corporation (a food/consumer
products company) since 1983, Alliance Bank since 1980, Manpower, Inc. (a
worldwide provider of staffing services), since 2001, and Kmart Corporation (a
discount consumer products company) from 1985 to 2003; and Trustee of the
University of Chicago since 1980 and Marquette University since 1988.
Gordon B. Greer (DOB 2-17-32), Director of the Strong Funds since March 2002.
Mr. Greer was Of Counsel for Bingham McCutchen LLP (a law firm previously
known as Bingham Dana LLP) from 1997 to February 2002 and Partner of Bingham
McCutchen LLP from 1967 to 1997. On behalf of Bingham McCutchen LLP, Mr. Greer
provided representation to the disinterested directors of the Strong Funds from
1991 to February 2002. Bingham McCutchen LLP has provided representation to the
Independent Directors of the Strong Funds since 1991.
Stanley Kritzik (DOB 1-9-30), Director of the Strong Funds since January 1995
and Chairman of the Audit Committee of the Strong Funds since July 2000.
Mr. Kritzik has been Partner of Metropolitan Associates (a real estate
firm) since 1962; Director of Wisconsin Health Information Network since
November 1997, Health Network Ventures, Inc., from 1992 to April 2000, Aurora
Health Care from September 1987 to September 2002; and Member of the Board of
Governors of Snowmass Village Resort Association from October 1999 until October
2002.
Neal Malicky (DOB 9-14-34), Director of the Strong Funds since December 1999.
Mr. Malicky has been President Emeritus of Baldwin-Wallace College since
July 2000; Chancellor of Baldwin-Wallace College from July 1999 to June 2000;
President of Baldwin-Wallace College from July 1981 to June 1999; Director of
Aspire Learning Corporation since June 2000; Trustee of Southwest Community
Health Systems, Cleveland Scholarship Program, and The National Conference for
Community and Justice until 2001; President of the National Association of
Schools and Colleges of the United Methodist Church, Chairperson of the
Association of Independent Colleges and Universities of Ohio, and Secretary of
the National Association of Independent Colleges and Universities until 2001.
William F. Vogt (DOB 7-19-47), Director and Chairman of the Independent
Directors Committee of the Strong Funds since January 1995.
Mr. Vogt has been Senior Vice President of IDX Systems Corporation (a
management consulting firm) since June 2001; President of Vogt Management
Consulting, Inc., from July 1990 to June 2001; and former Fellow of the American
College of Medical Practice Executives.
69
DIRECTORS AND OFFICERS (continued)
- --------------------------------------------------------------------------------
Ane K. Ohm (DOB 10-16-69), Anti-Money Laundering Compliance Officer since
November 2002.
Ms. Ohm has been Director of Mutual Fund Administration of Strong Investor
Services, Inc., since April 2001; Marketing Services Manager of Strong
Investments, Inc., from November 1998 to April 2001; and Retail Services
Financial Manager of Strong Investments, Inc., from January 1997 to November
1998.
Christopher O. Petersen (DOB 1-18-70), Vice President and Assistant Secretary of
the Strong Funds since May 2003.
Mr. Petersen has been Managing Counsel of Strong Financial Corporation
since March 2003; Corporate Counsel at U.S. Bancorp Asset Management, Inc., from
May 2001 to March 2003; Corporate Counsel at First American Asset Management, a
division of U.S. Bank National Association ("FAAM"), from September 1999 to May
2001; Compliance Officer at FAAM from January 1999 to September 1999; and
Associate at Mauzy Law Firm from September 1997 to December 1998.
Richard W. Smirl (DOB 4-18-67), Vice President of the Strong Funds since
February 2002 and Secretary of the Strong Funds since November 2001.
Mr. Smirl has been Senior Counsel of Strong Financial Corporation since
December 2001; Assistant Executive Vice President since December 2001; Secretary
of the Advisor since November 2002; Assistant Secretary of the Advisor from
December 2001 to November 2002; Senior Counsel of the Advisor from July 2000 to
December 2001; General Counsel of Strong Investments, Inc. ("Distributor"),
since November 2001; Vice President, Secretary, and Chief Compliance Officer of
the Distributor since July 2000; Lead Counsel of the Distributor from July 2000
to November 2001; Partner at Keesal, Young & Logan LLP (a law firm) from
September 1999 to July 2000; and Associate at Keesal, Young & Logan LLP from
September 1992 to September 1999.
Gilbert L. Southwell III (DOB 4-13-54), Assistant Secretary of the Strong Funds
since July 2001.
Mr. Southwell has been Associate Counsel of Strong Financial Corporation
since December 2001; Assistant Secretary of the Advisor since December 2002;
Associate Counsel of the Advisor from April 2001 to December 2001; Partner at
Michael, Best & Friedrich, LLP (a law firm) from October 1999 to March 2001; and
Assistant General Counsel of U.S. Bank, National Association (formerly Firstar
Bank, N.A.) and/or certain of its subsidiaries from November 1984 to September
1999.
John W. Widmer (DOB 1-19-65), Treasurer of the Strong Funds since April 1999.
Mr. Widmer has been Treasurer of the Advisor since April 1999; Assistant
Secretary and Assistant Treasurer of Strong Financial Corporation since December
2001; Treasurer of Strong Service Corporation since April 1999; Treasurer and
Assistant Secretary of Strong Investor Services, Inc., since July 2001; and
Manager of the Financial Management and Sales Reporting Systems department of
the Advisor from May 1997 to April 1999.
Thomas M. Zoeller (DOB 2-21-64), Vice President of the Strong Funds since
October 1999.
Mr. Zoeller has been Executive Vice President of the Advisor since April
2001; Chief Financial Officer of the Advisor since February 1998; Secretary of
the Advisor from December 2001 to November 2002; Member of the Office of the
Chief Executive of Strong Financial Corporation since May 2001; Chief Financial
Officer and Treasurer of Strong Investments, Inc., since October 1993; Executive
Vice President and Secretary of Strong Investor Services, Inc., since July 2001;
Executive Vice President, Chief Financial Officer, and Secretary of Strong
Service Corporation since December 2001; Treasurer of Strong Service Corporation
from September 1996 to April 1999; Vice President of Strong Service Corporation
from April 1999 to December 2001; Member of the Office of the Chief Executive of
the Advisor from November 1998 until May 2001; Senior Vice President of the
Advisor from February 1998 to April 2001; and Treasurer and Controller of the
Advisor from October 1991 to February 1998.
Except for Messrs. Davis, Kritzik, Malicky, and Vogt, the address of all of
the Directors and Officers is P.O. Box 2936, Milwaukee, WI 53201. Mr. Davis's
address is 161 North La Brea, Inglewood, CA 90301. Mr. Kritzik's address is 1123
North Astor Street, Milwaukee, WI 53202. Mr. Malicky's address is 4608 Turnberry
Drive, Lawrence, KS 66047. Mr. Vogt's address is P.O. Box 7657, Avon, CO 81620.
The statement of additional information contains additional information
about fund directors and officers and is available without charge, upon request,
by calling 1-800-368-3863.
70
Directors
Richard S. Strong
Willie D. Davis
Gordon B. Greer
Stanley Kritzik
Neal Malicky
William F. Vogt
Officers
Richard S. Strong, Chairman of the Board
Thomas M. Zoeller, Vice President
Richard W. Smirl, Vice President and Secretary
Christopher O. Petersen, Vice President and Assistant Secretary
Gilbert L. Southwell III, Assistant Secretary
John W. Widmer, Treasurer
Ane K. Ohm, Anti-Money Laundering Compliance Officer
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
State Street Bank and Trust Company
801 Pennsylvania Avenue, Kansas City, Missouri 64105
Transfer Agent and Dividend-Disbursing Agent
Strong Investor Services, 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
This report does not constitute an offer for the sale of securities. Strong
Funds are offered for sale by prospectus only. Securities are offered through
Strong Investments, Inc. RT35733 08-03
Strong Investments
P.O. Box 2936 | Milwaukee, WI 53201
www.Strong.com
- --------------------------------------------------------------------------------
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.Strong.com
[STRONG LOGO]
SGRO/WH2150 06-03
Item 1. Reports to Stockholders
SEMIANNUAL REPORT | June 30, 2003
The Strong
Core
Funds
[PHOTO APPEARS HERE]
Strong Balanced Fund
Strong Large Cap Core Fund
Strong Growth and Income Fund
Strong Opportunity Fund
[STRONG LOGO]
SEMIANNUAL REPORT | June 30, 2003
The Strong
Core
Funds
Table of Contents
Investment Reviews
Strong Balanced Fund ............................................ 2
Strong Large Cap Core Fund ...................................... 4
Strong Growth and Income Fund ................................... 6
Strong Opportunity Fund ......................................... 8
Financial Information
Schedules of Investments in Securities
Strong Balanced Fund .......................................10
Strong Large Cap Core Fund .................................15
Strong Growth and Income Fund ..............................16
Strong Opportunity Fund ....................................19
Statements of Assets and Liabilities ............................22
Statements of Operations ........................................25
Statements of Changes in Net Assets .............................28
Notes to Financial Statements ...................................30
Financial Highlights .................................................39
Directors and Officers ...............................................44
A Few Words From Dick Strong
- --------------------------------------------------------------------------------
[PHOTO APPEARS HERE]
Market Update -- January 1 to June 30, 2003
In the early 1930s, politicians and policymakers in the United States and
elsewhere made a series of strategic errors that resulted in what historians
termed "an economic contraction." The rest of us call that period of horrible
human suffering and deprivation The Great Depression. When it finally ended,
those same politicians and economists vowed never to make the same mistakes
again.
In this country, seven decades later, the lessons of The Great Depression still
echo in our hearts and minds. Today, responding to weak economic growth and
fears of a possible severe slowdown, our government's economic policymakers have
employed almost every imaginable tool to spur economic growth. As the world's
biggest economy and the economic engine of the world, the U.S. has led the
way--but not alone. Other countries and regional economic authorities are
likewise moving to stimulate their economies.
The store of economic stimulants being brought to bear is unrivaled since World
War II. In the U.S. alone, we have witnessed massive government spending, with a
projected deficit larger than any in history. Monetary policy also has
contributed, pushing short-term interest rates to the lowest levels in more than
50 years. A weaker dollar aims to support manufacturing and export growth.
Changes in the tax laws on dividends and the evolving shift in corporate
compensation away from stock options to stock grants should meaningfully improve
corporate capital allocation.
History has demonstrated that it is dangerous to bet against the world's
governing bodies when they resolve to propel economic growth. Signs suggest that
we are in the beginning stages of a solid economic rebound. Early in such a
recovery phase, stocks and commodity prices usually rise, anticipating further
recovery. As additional signs of improvement emerge, consumer and business
confidence historically grows, and soon spending typically accelerates.
In the early stages of recovery, employment generally lags (usually 12-18
months) until employers gain confidence that such momentum will be sustained.
Because politicians are hypersensitive to employment numbers, they constantly
beat the drums of despair, when in reality hiring may be about to improve. And
so, it is not unusual to see more aggressive measures taken beyond the point
where a legitimate recovery is in place and employment is actually ready to
expand.
The strength of our economic system is that, beneath the bland economic
statistics reported daily, the system is always driving toward greater
efficiency and productivity. Those gains, in turn, inspire growth and create
wealth. The pressure and incentive for positive change is heightened during
downturns. Thus, our economy is often stronger
in the ensuing recovery. It is the combination of our political freedom and our
flexible economic system that has created the world's richest and most
productive country.
The change that our system creates and accommodates is astonishing. At the
beginning of the 20th century, 60 million Americans were employed in
agriculture. Today, that number has shrunk to an almost unbelievable 2.5 million
people. In the 1950s, 35% of Americans were employed in manufacturing; that
number has now fallen to 15%. Manufacturing supplanted farming as the country's
dominant employer and wealth generator. Now, the service and technology sectors
are taking their turn as the nation's leading economic sectors.
The changes under way in executive compensation and taxation of shareholder
dividends are important for all investors to understand. The use of stock grants
instead of stock options--that is, real money in place of pipe dreams and
gimmicks--should shore up the financial foundation of American corporations.
Likewise, the dividend tax law change should have far-reaching consequences. The
time-honored practice of companies returning part of their profits to
shareholders is a sound one. Issuing dividends will make corporate executives
more sensitive to downside risk as well as upside opportunity. The impact of
lower taxes on those dividends could be massive.
The United States and the rest of the world are in a consolidation phase
following the 1990s, a period that was--in every economic sense--abnormal. The
boom and the resultant bust scared and disoriented all of us. But we believe
that chapter is closing, and we are wiser for the lessons it taught us.
At the end of the day, there is a good chance that governmental growth
initiatives throughout the world will work. If they do, the world's economy will
recover, and we could reach a healthy 4%-plus real growth rate in 2004. The
current program of policy and tax changes should lay the foundation for job
growth and a sustained period of better economic times.
Investors should get on the right side of these trends by continuing to invest
using the appropriate combination of stocks and bonds, always consistent with
their long-term financial goals.
/s/ Dick
Strong Balanced Fund
================================================================================
Effective March 28, 2003, the Strong Balanced Asset Fund was reorganized into
the Strong Balanced Fund.
Your Fund's Approach
The Strong Balanced Fund seeks high total return consistent with reasonable risk
over the long term. The Fund invests, under normal conditions, between 30% and
70% of its net assets in stocks and between 30% and 70% of its net assets in
bonds. The Fund's equity manager focuses primarily on the stocks of
large-capitalization, dividend-paying U.S. companies that offer the potential
for capital growth and attempts to strike a balance between an investment's
growth and income prospects and its potential risks. The Fund's bond portfolio
consists primarily of investment-grade bonds of intermediate duration, including
U.S. government and agency, corporate, and mortgage-backed securities. The Fund
may invest in derivative securities for nonspeculative purposes (e.g., to manage
investment risk, for liquidity, or to enhance the Fund's return) and may utilize
an active trading approach. The managers may sell a holding when they believe it
no longer offers an attractive balance between risk and return.
Growth of an Assumed $10,000 Investment+
From 12-30-81 to 6-30-03
[CHART APPEARS HERE]
Lipper Flexible
The Strong S&P 500 Portfolio
Balanced Fund Index* Funds Average*
Dec 81 $ 10,000 $ 10,000 $ 10,000
Dec 82 $ 13,320 $ 12,155 $ 13,354
Dec 83 $ 19,344 $ 14,896 $ 16,196
Dec 84 $ 21,234 $ 15,831 $ 16,340
Dec 85 $ 25,346 $ 20,854 $ 20,336
Dec 86 $ 29,819 $ 24,747 $ 23,586
Dec 87 $ 29,734 $ 26,046 $ 24,360
Dec 88 $ 32,467 $ 30,360 $ 27,163
Dec 89 $ 36,104 $ 39,963 $ 31,939
Dec 90 $ 37,107 $ 38,721 $ 31,764
Dec 91 $ 44,393 $ 50,492 $ 40,134
Dec 92 $ 45,824 $ 54,334 $ 43,604
Dec 93 $ 52,469 $ 59,798 $ 48,597
Dec 94 $ 51,679 $ 60,584 $ 47,672
Dec 95 $ 63,028 $ 83,324 $ 59,563
Dec 96 $ 69,617 $ 102,443 $ 68,002
Dec 97 $ 81,219 $ 136,608 $ 80,871
Dec 98 $ 98,558 $ 175,645 $ 92,455
Dec 99 $ 113,836 $ 212,601 $ 104,518
Dec 00 $ 106,599 $ 193,263 $ 105,589
Dec 01 $ 94,843 $ 170,311 $ 99,119
Dec 02 $ 82,847 $ 132,685 $ 86,471
Jun 03 $ 89,553 $ 148,278 $ 94,031
+ 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
S&P 500 Index ("S&P 500") and the Lipper Flexible Portfolio Funds 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. The graph and the Average Annual Total
Returns table do not reflect the deduction of taxes, if any, that a
shareholder would pay on Fund distributions or the redemption of Fund
shares.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
For the six months ended June 30, 2003, the Fund posted positive returns. The
first half of the year had two distinct performance profiles. The first quarter
was highly influenced by the war in Iraq. In this environment, the market
embraced a more conservative approach that seemed to favor the larger stocks
that are the focus of this Fund's equity portion.
The second quarter was decidedly more upbeat. The end of major combat in Iraq
boosted consumer confidence and led to expectations of an economic and market
rebound. Also, bond yields approached generational lows. Small- and
mid-capitalization stocks had the advantage during this period, which hurt the
relative performance of the Fund's equity holdings.
The tone shifted from quarter to quarter
The first half of the year can be divided into pre- and post-major combat in
Iraq. While the war's outcome was rarely in doubt, during the first quarter the
course that the war would follow was constantly questioned. This uncertainty
hurt business spending and consumer confidence. Also, oil prices rose
significantly in anticipation of and response to the war, putting pressure on
consumer discretionary income. In this unsettling period, it was not surprising
to see the market's favor turn toward high-quality, large-capitalization stocks.
As the major portion of the Iraq war was completed, in the second quarter
the market focused on the prospects for economic recovery. Looking back to the
previous Iraq conflict in 1990-1991, investors began to map out a similar
2
positive response in economic activity and stock market trends. This was evident
as investors turned their attention to small- and mid-cap stocks. While the
stocks of established, stable companies participated in the market rally, they
did not keep pace with the broader market move.
The Federal Reserve continued to cut rates during the period, and bond yields
fell to nearly 40-year lows over the first half of the year. This contributed to
a continued strong housing market and additional mortgage refinancing. These, in
turn, helped consumers to weather the negative impact of higher energy prices
and a weak employment environment.
Positioned for economic recovery
The focus of the Fund's equity position is on the stocks of
large-capitalization, dividend-paying companies. As we have noted, this approach
helped the Fund outperform its broad-based benchmark, the S&P 500 Index, during
the first quarter of the year but led it to underperform during the second
quarter. The Fund generated a year-to-date return of 8.09% compared to the S&P
500 Index, which generated a year-to-date return of 11.75% as of June 30, 2003.
Throughout the six months, the Fund was positioned for some recovery in economic
activity and corporate profits. In addition to the potential recovery to come
after the resolution of the situation in Iraq, we believed that the heavy
stimulus aimed at the economy--from both a fiscal and monetary standpoint--would
be likely to produce some improvement in economic activity and corporate
earnings. With this in mind, we moved the Fund's allocation to stocks within a
range of 65% to 70% during the period.
Throughout the six months, the Fund had a slight bias toward the technology and
retail sectors, a positioning designed to benefit from a rebound in the economy.
The stocks we chose within these sectors shared similar qualities of being
leaders in their field, having large market capitalizations, and being on a
recovering earnings trajectory.
Many of the same factors that drove the equity markets also benefited the
corporate bond market over the six months. Credit quality played a significant
role in returns, with lower-rated bonds significantly outperforming
higher-quality debt. Because the Fund's bond position included BBB-rated bonds
during the period, this trend had favorable impact on our performance.
Our outlook for the months ahead
We are guardedly optimistic that the economy and corporate profits are on the
path toward recovery. First-half earnings appear to be in line with
expectations, and continued growth is expected. After a number of years of
aggressive earnings estimates by analysts, it now appears that these forecasts
are in line with realistic expectations.
Interest rates are near 40-year lows, benefiting consumers and businesses alike.
Energy prices have not declined as much as most would have hoped but have backed
off from their earlier highs. In addition, we are in the third year of a
Presidential cycle--a time that historically has favored better performance. We
will continue to monitor the recovery's progress and strive to make adjustments
accordingly.
Thank you for your investment in the Strong Balanced Fund.
Rimas M. Milaitis
Portfolio Co-Manager
Bradley Doyle
Portfolio Co-Manager
Average Annual Total Returns
As of 6-30-03
- ----------------------------------------
1-year 3.37%
3-year -7.76%
5-year -0.67%
10-year 6.18%
Since Fund Inception 10.74%
(12-30-81)
The Fund invests in lower-quality securities that present a significant risk for
loss of principal and interest. Please consider this before investing.
Equity funds are volatile investments and should only be considered for
long-term goals.
* The S&P 500 Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market value weighted index
(stock price times number of shares outstanding), with each stock's weight
in the Index proportionate to its market value. The Lipper Flexible
Portfolio Funds Average is the average of all funds in the Lipper Flexible
Portfolio Funds Category. These funds allocate their investments across
various asset classes, including domestic common stocks, bonds, and money
market instruments with a focus on total return. Source of the S&P index
data is Standard & Poor's Micropal. Source of the Lipper index data is
Lipper Inc.
3
Strong Large Cap Core Fund
================================================================================
Your Fund's Approach
The Strong Large Cap Core Fund seeks capital growth. The Fund invests, under
normal conditions, at least 80% of its net assets in the stocks of
large-capitalization companies. Large-capitalization companies are defined as
those companies with a market capitalization substantially similar to that of
companies in the S&P 500 Index at the time of investment. The Fund also invests
in medium-capitalization companies. The manager chooses stocks through
fundamental analysis and research and looks for companies the manager believes
may have long-term growth potential. The manager examines many factors, such as
consistency of the business plan, foresight of the competitive market
conditions, business knowledge, and management's attention to detail. To a
limited extent, the Fund may also invest in companies the manager believes may
be inexpensive relative to one or more valuation measures such as earnings, cash
flow, or asset value. The portfolio generally holds 50 or fewer stocks. The
manager may sell a holding if its growth prospects diminish or if better
investment opportunities become available.
Growth of an Assumed $10,000 Investment+
From 6-30-98 to 6-30-03
[CHART APPEARS HERE]
The Strong Lipper Large-
Large Cap S&P 500 Cap Core
Core Fund Index* Funds Index*
Jun 98 $ 10,000 $ 10,000 $ 10,000
Dec 98 $ 11,250 $ 10,924 $ 10,754
Jun 99 $ 12,750 $ 12,276 $ 11,841
Dec 99 $ 14,553 $ 13,222 $ 12,835
Jun 00 $ 13,786 $ 13,167 $ 13,077
Dec 00 $ 13,215 $ 12,020 $ 11,889
Jun 01 $ 12,523 $ 11,215 $ 10,962
Dec 01 $ 11,734 $ 10,592 $ 10,363
Jun 02 $ 10,498 $ 9,199 $ 9,082
Dec 02 $ 8,579 $ 8,252 $ 8,162
Jun 03 $ 9,432 $ 9,222 $ 8,991
+ 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
S&P 500 Index ("S&P 500") and the Lipper Large-Cap Core 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. The graph and the Average Annual Total
Returns table do not reflect the deduction of taxes, if any, that a
shareholder would pay on Fund distributions or the redemption of Fund
shares.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
For the six months ended June 30, 2003, the Fund posted strong returns on an
absolute basis while moderately underperforming its broad-based benchmark, the
S&P 500 Index. The Fund posted mild losses in the first quarter, when the
markets and the economy were stalled by concerns about the war with Iraq. In the
second quarter, the Fund posted strong returns as the war's quick resolution
boosted investor and consumer confidence.
Two very different quarters
The economy and markets started January on an optimistic note, but both quickly
fell as fears of the impact of war with Iraq consumed the minds of investors,
businesses, and consumers. In the uncertainty, businesses delayed spending and
made additional cutbacks in payroll, and consumer confidence weakened. Equities
reached their low point in mid-March, and returns in most sectors were negative.
In the second quarter, however, the progress of the coalition forces in Iraq
proved to be better than many expected, driving strong upward momentum in the
markets. The recovery was broad-based, with virtually every sector posting
positive returns. Newly restored confidence in America--not just in its military
strength but also in its economic power--drove this sea of change in investor
sentiment. Continued monetary stimulus from the
4
Federal Reserve and fiscal stimulus in the form of tax cuts from the President
and Congress also helped to increase optimism regarding the prospects for
economic recovery.
As investors gained more confidence in the economy, they became willing to put
more money back into the equity markets--even though current economic news has
been mixed. This is consistent with a role the stock market has historically
played--as a leading indicator of economic growth.
Large-cap stocks performed more strongly in the early part of this rebound, from
mid-March through mid-April. At that point, investor sentiment and tolerance for
risk accelerated, which allowed small- and mid-cap stocks to outperform
large-cap stocks.
A high level of diversification
Over the six months, the Fund's composition in terms of sectors was closely in
line with its broad-based benchmark, reflecting broad diversification. This
approach is a good long-term strategy--but it made sense particularly in the
second half of the period, an environment that saw a variety of sectors post
strong results.
The Fund was, however, overweighted compared to the S&P 500 Index in the
consumer cyclicals area and benefited strongly from this position. Some holdings
in this sector experienced very strong appreciation in the second-quarter rally.
We also had a mild overweighting in financials, where we were able to identify a
number of stocks selling at attractive valuations.
Recovery appears likely to continue
Consumer-related sectors have led the recovery to date, with housing activity
and car sales both playing key roles in leading the economy out of recession.
Despite weak employment data, consumer spending fundamentals remain fairly
healthy and appear set to improve. Spending on housing and cars may slow, but
retail and services spending may very well increase to fill the void.
At this point, the manufacturing sector and corporate capital spending have
corrected to the point that they now seem set to provide a good base for
noninflationary growth for some time to come. While businesses may wait a little
longer before gaining full confidence and stepping up spending, we believe that
once the turn comes, it could progress more quickly than expected. The
cost-cutting measures that have been taking place over the past several years
could set the stage for profits to expand faster than revenues.
Despite recent gains, price/earnings ratios for many stocks are still very
reasonable, particularly when adjusted to account for low interest rates. We
believe significant opportunities for further appreciation remain available in a
variety of sectors.
We appreciate your continued investment in the Strong Large Cap Core Fund.
Karen E. McGrath
Portfolio Manager
Average Annual Total Returns
As of 6-30-03
- ----------------------------------------
1-year -10.15%
3-year -11.88%
5-year -1.16%
Since Fund Inception -1.16%
(6-30-98)
The Fund's since inception return was significantly enhanced through investments
in initial public offerings. You should not expect that such favorable returns
can be consistently achieved. Please consider this before investing.
Equity funds are volatile investments and should only be considered for
long-term goals.
From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
* The S&P 500 Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market value weighted index
(stock price times number of shares outstanding), with each stock's weight
in the Index proportionate to its market value. The Lipper Large-Cap Core
Funds Index is the average of the 30 largest funds in the Lipper Large-Cap
Core Funds Category. Source of the S&P index data is Standard & Poor's
Micropal. Source of the Lipper index data is Lipper Inc.
5
Strong Growth and Income Fund
================================================================================
Your Fund's Approach
The Strong Growth and Income Fund seeks high total return by investing for
capital growth and income. The Fund, under normal conditions, focuses primarily
on the stocks of large-capitalization, dividend-paying U.S. companies that offer
the potential for capital growth. The manager's investment philosophy is that
the stocks of companies with strong relative earnings growth will perform well
over time. To choose investments, the manager focuses on those companies that
are improving their returns on invested capital. The manager utilizes
fundamental analysis, such as management interviews and financial statement
analysis. In addition, screening techniques are used to identify undervalued
securities, improving returns, and earnings growth. The Fund may invest in
derivative securities for nonspeculative purposes (e.g., to manage investment
risk, for liquidity, or to enhance the Fund's return) and may utilize an active
trading approach. The manager may sell a holding when its fundamental qualities
deteriorate.
Growth of an Assumed $10,000 Investment+
From 12-29-95 to 6-30-03
[CHART APPEARS HERE]
The Strong Lipper Large-
Growth and S&P 500 Cap Core
Income Fund Index* Funds Index*
Dec 95 $ 10,000 $ 10,000 $ 10,000
Jun 96 $ 11,556 $ 11,009 $ 10,896
Dec 96 $ 13,191 $ 12,295 $ 11,984
Jun 97 $ 15,469 $ 14,827 $ 14,114
Dec 97 $ 17,199 $ 16,395 $ 15,486
Jun 98 $ 20,447 $ 19,297 $ 18,280
Dec 98 $ 22,866 $ 21,080 $ 19,657
Jun 99 $ 25,842 $ 23,689 $ 21,644
Dec 99 $ 30,237 $ 25,515 $ 23,461
Jun 00 $ 30,395 $ 25,408 $ 23,904
Dec 00 $ 27,137 $ 23,194 $ 21,732
Jun 01 $ 23,414 $ 21,642 $ 20,038
Dec 01 $ 21,692 $ 20,440 $ 18,943
Jun 02 $ 18,893 $ 17,752 $ 16,602
Dec 02 $ 16,957 $ 15,924 $ 14,921
Jun 03 $ 18,633 $ 17,795 $ 16,435
+ 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
S&P 500 Index ("S&P 500") and the Lipper Large-Cap Core 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. The graph and the Average Annual Total
Returns table do not reflect the deduction of taxes, if any, that a
shareholder would pay on Fund distributions or the redemption of Fund
shares. This graph is based on Investor Class shares only; performance for
other classes will vary due to differences in fee structures.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
For the six months ended June 30, 2003, the Fund posted positive returns. The
first half of the year had two distinct performance profiles. The first quarter
was highly influenced by the war in Iraq. In this environment, the market
embraced a more conservative approach that seemed to favor the larger stocks
that are this Fund's focus.
The second quarter was decidedly more upbeat. The end of major combat in Iraq
boosted consumer confidence and led to expectations of an economic and market
rebound. Also, bond yields approached generational lows. Small- and
mid-capitalization stocks had the advantage during this period, which hurt the
Fund's relative performance somewhat.
Two very different quarters
The first half of the year can be divided into pre- and post-major combat in
Iraq. While the war's outcome was rarely in doubt, during the first quarter the
course that the war would follow was constantly questioned. This uncertainty
hurt business spending and consumer confidence. Also, oil prices rose
significantly in anticipation of and response to the war, putting pressure on
consumer discretionary income. In this unsettling period, it was not surprising
to see the market's favor turn toward high-quality, large-capitalization stocks.
As the major portion of the Iraq war was completed, in the second quarter the
market focused on the prospects for economic recovery. Looking back to the
previous Iraq conflict in 1990-1991, investors began to map out a similar
positive response in economic activity and stock market trends. This was evident
as investors turned their attention to small- and mid-cap stocks. While the
stocks of established, stable companies participated in the market rally, they
did not keep pace with the broader market move.
6
Also having impact on the markets over the six months were fears of deflation,
limiting the ability of companies to improve earnings by raising prices. The
Federal Reserve voiced concern about this issue during one of its meetings and
even cut rates further in a preemptive strike. Nonetheless, at this point
inflation remains positive, though at a low level. It appears to us that this
period of relative pricing weakness reflects weak demand--a situation that can
resolve itself as underlying economic trends begin to improve.
Bond yields were driven down to nearly 40-year lows during the first half of the
year. This contributed to a continued strong housing market and additional
mortgage refinancing. These in turn helped consumers to weather the negative
impact of higher energy prices and a weak employment environment.
Our positioning for a changing environment
The Fund's focus is on the stocks of large-capitalization, dividend-paying
companies. As we have noted, this approach helped the Fund outperform its
broad-based benchmark, the S&P 500 Index, during the first quarter of the year
but led it to underperform during the second quarter. Throughout the six months,
the Fund was positioned for some recovery in economic activity and corporate
profits. In addition to the potential recovery to come after the resolution of
the situation in Iraq, we believed that the heavy stimulus aimed at the
economy--from both a fiscal and monetary standpoint--would be likely to produce
some improvement in economic activity and corporate earnings.
Throughout the period, the Fund had a slight bias toward the technology and
retail sectors, a positioning designed to benefit from a recovery in the
economy. The stocks we chose within these sectors shared similar qualities of
being leaders in their field, having large market capitalizations, and being on
a recovering earnings trajectory. In addition, their attractive valuations at
the time we purchased them offered significant room for potential appreciation.
And indeed, a number of these stocks have already made considerable progress and
contributed positively to returns.
Our outlook for the months ahead
We are guardedly optimistic that the economy and corporate profits are on the
path toward recovery. First-half earnings appear to be in line with
expectations, and continued growth is expected. After a number of years of
analyst earnings estimates being too aggressive, it now appears that these
forecasts are in line with realistic expectations.
Interest rates are near 40-year lows, benefiting consumers and businesses alike.
Energy prices have not declined as much as most would have hoped, but they have
backed off from their earlier highs. In addition, we are in the third year of a
Presidential cycle--a time that historically has favored better performance. We
will continue to monitor the recovery's progress and strive to make adjustments
accordingly.
Thank you for your investment in the Strong Growth and Income Fund.
Rimas M. Milaitis
Portfolio Manager
Average Annual Total Returns
As of 6-30-03
Investor Class
- ----------------------------------------
1-year -1.38%
3-year -15.05%
5-year -1.84%
Since Fund Inception 8.65%
(12-29-95)
Institutional Class/2/
- ----------------------------------------
1-year -0.57%
3-year -14.49%
5-year -1.42%
Since Fund Inception 8.96%
(12-29-95)
Advisor Class/3/
- ----------------------------------------
1-year -1.24%
3-year -15.09%
5-year -1.96%
Since Fund Inception 8.47%
(12-29-95)
Class K/1/,/4/
- ----------------------------------------
1-year -0.89%
3-year -14.86%
5-year -1.71%
Since Fund Inception 8.74%
(12-29-95)
Equity funds are volatile investments and should only be considered for
long-term goals.
/1/ From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
/2/ The performance of the Institutional Class shares prior to February 29,
2000, is based on the Fund's Investor Class shares' performance. Please
consult a prospectus for information about all share classes.
/3/ The performance of the Advisor Class shares prior to February 29, 2000, is
based on the Fund's Investor Class shares' performance, restated for the
higher expense ratio of the Advisor Class shares. Please consult a
prospectus for information about all share classes.
/4/ The performance of Class K shares prior to December 31, 2001, is based on
the Fund's Investor Class shares' performance. Please consult a prospectus
for information about all share classes.
* The S&P 500 Index consists of 500 stocks chosen for market size, liquidity,
and industry group representation. It is a market value weighted index
(stock price times number of shares outstanding), with each stock's weight
in the Index proportionate to its market value. The Lipper Large-Cap Core
Funds Index is the average of the 30 largest funds in the Lipper Large-Cap
Core Funds Category. Source of the S&P index data is Standard & Poor's
Micropal. Source of the Lipper index data is Lipper Inc.
7
Strong Opportunity Fund
================================================================================
Your Fund's Approach
The Strong Opportunity Fund seeks capital growth. The Fund invests, under normal
conditions, primarily in stocks of medium-capitalization companies that the
Fund's managers believe are underpriced yet have attractive growth prospects.
The managers base their analysis on a company's "private market value"--the
price an investor would be willing to pay for the entire company given its
management, financial health, and growth potential. The managers determine a
company's private market value based on a fundamental analysis of a company's
cash flows, asset valuations, competitive situation, and franchise value. The
manager may sell a stock when its price no longer compares favorably with the
company's private market value.
Growth of an Assumed $10,000 Investment+
From 12-31-85 to 6-30-03
[CHART APPEARS HERE]
The Strong Russell Lipper Multi-
Opportunity MidCap(R) Cap Core
Fund Index* Funds Index*
Dec 85 $ 10,000 $ 10,000 $ 10,000
Dec 86 $ 15,990 $ 11,820 $ 11,426
Dec 87 $ 17,894 $ 11,847 $ 11,820
Dec 88 $ 20,841 $ 14,193 $ 13,264
Dec 89 $ 24,694 $ 17,922 $ 17,104
Dec 90 $ 21,903 $ 15,861 $ 16,334
Dec 91 $ 28,845 $ 22,446 $ 21,600
Dec 92 $ 33,851 $ 26,114 $ 23,615
Dec 93 $ 41,022 $ 29,848 $ 26,529
Dec 94 $ 42,325 $ 29,223 $ 26,284
Dec 95 $ 53,868 $ 39,292 $ 34,750
Dec 96 $ 63,637 $ 46,757 $ 41,863
Dec 97 $ 78,558 $ 60,321 $ 52,862
Dec 98 $ 90,724 $ 66,410 $ 62,742
Dec 99 $ 121,017 $ 78,518 $ 75,771
Dec 00 $ 131,394 $ 84,995 $ 73,243
Dec 01 $ 125,085 $ 80,215 $ 65,362
Dec 02 $ 91,370 $ 67,232 $ 51,152
Jun 03 $ 106,142 $ 77,630 $ 57,901
+ 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
Russell Midcap(R) Index and the Lipper Multi-Cap Core 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. The graph and the Average Annual Total Returns table do not
reflect the deduction of taxes, if any, that a shareholder would pay on
Fund distributions or the redemption of Fund shares. This graph is based on
Investor Class shares only; performance for other classes will vary due to
differences in fee structures.
The Fund's prospectus and statement of additional information may describe
restrictions on the percentage of a particular type or quality of security
in which the Fund may invest ("Percentage Restrictions"). Percentage
Restrictions apply at the time the Fund purchases a security. Circumstances
subsequent to the purchase of the security, such as a change in: (1) the
Fund's assets (e.g., due to cash inflows and redemptions); (2) the market
value of the security; or (3) the pricing, liquidity, or rating of the
security, may cause the Fund to exceed or fall short of the Percentage
Restriction. If this happens, the Fund's continued holding of the security
will not constitute a violation of the Percentage Restriction.
The Fund posted solid performance during the first six months of 2003. We were
pleased with the portfolio's performance, particularly its strength as the
period came to a close. During the first quarter of 2003, we strategically
reviewed many of the Fund's holdings. The market's weakness during February and
part of March gave us an opportunity to replace some holdings with
higher-quality stocks that not only performed well in the market upturn that
began in late March but also positioned the Fund well for the balance of the
year and beyond.
We had a number of holdings that were hurt in 2002 by the tight credit
conditions that then prevailed. These stocks benefited from additional monetary
stimulus in the first half of this year, as well as an easing of investors'
aversion to risk. As a result, the Fund's credit-sensitive holdings,
particularly in the media area, performed especially well.
New tax law has impact
The first six months of 2003 were characterized by significant market
volatility. A strong January gave way to a sharp sell-off in February and early
March, as investors grappled with uncertainties associated with the pending
conflict in Iraq and the economic impact of the SARS outbreak. Once the Iraq
conflict began and it was clear that coalition forces were making rapid
progress, the stock market rallied strongly through the end of June.
8
While the major events during the past six months appeared to be largely
geopolitical in nature, the changes in domestic policy during this period were,
if anything, even more significant. The U.S. government implemented sweeping tax
changes that sharply reduced the capital gains and dividends-received tax rates,
significantly improving the investment landscape.
Historically, reductions in capital gains taxes have unleashed a fury of
entrepreneurial activity, with new businesses and even industries created.
Reducing capital-gains tax rates also has been shown to spur mergers and
acquisitions activity.
The underlying investment methodology of the Fund is to determine a company's
private market value--what that company would be worth if sold as a whole--and
then buy the stock at a deep discount to that value. Our goal isn't to invest
only in companies that will be acquired, but we look at many of the same metrics
that may also attract would-be acquirers. A return to a healthier environment
for corporate acquisitions is clearly positive for equity values in general and
for the Fund in particular.
The reduction in dividend taxes is also highly significant and may prove to be
the most far-reaching change of the next decade. Going forward, corporate
managements will be under increasing pressure to pay dividends rather than
continue to pour capital into low-return projects. We are actively seeking out
those companies that we believe can increase their dividends dramatically over
the next few years or those that will have the ability to begin paying
dividends.
Careful changes to the portfolio
We have spent considerable time over the past 12 months taking a microscopic
view of the Fund's holdings, working to introduce new names into the portfolio
and sell those that we perceived no longer offered a favorable risk/reward
ratio. Our private market value methodology remains a powerful tool for
uncovering stocks that are mispriced.
As noted earlier, the more accommodating credit environment had a positive
impact on many of the Fund's holdings during the period. In addition to the
Fund's media holdings, stocks that benefited included those in the technology
and biotechnology areas. Selected retail holdings also generated strong
performance.
Our outlook
Generally, we do not allow a top-down market view to drive our investment
activity. We believe that our private market value methodology is applicable in
down and up markets. That said, it does appear to us that the equity markets
should benefit from the monetary and fiscal stimulus emanating from Washington,
from merger and acquisition activity that could result from recent changes in
tax policy, and from an eventual economic rebound.
We appreciate your continued investment in the Strong Opportunity Fund.
Richard T. Weiss
Portfolio Co-Manager
Ann M. Miletti
Portfolio Co-Manager
Average Annual Total Returns
As of 6-30-03
Investor Class
- ----------------------------------------
1-year 0.79%
5-year 3.39%
10-year 11.08%
Since Fund Inception 14.46%
(12-31-85)
Advisor Class/2/
- ----------------------------------------
1-year 0.70%
5-year 3.11%
10-year 10.76%
Since Fund Inception 14.11%
(12-31-85)
Class K/1/,/3/
- ----------------------------------------
1-year 1.03%
5-year 3.43%
10-year 11.10%
Since Fund Inception 14.47%
(12-31-85)
Equity funds are volatile investments and should only be considered for
long-term goals.
/1/ From time to time, the Fund's advisor and/or administrator has waived its
management fee and/or absorbed Fund expenses, which has resulted in higher
returns.
/2/ The performance of the Advisor Class shares prior to February 24, 2000, is
based on the Fund's Investor Class shares' performance, restated for the
higher expense ratio of the Advisor Class shares. Please consult a
prospectus for information about all share classes.
/3/ The performance of Class K shares prior to August 30, 2002, is based on the
Fund's Investor Class shares' performance. Please consult a prospectus for
information about all share classes.
* The Russell Midcap(R) Index measures the performance of the 800 smallest
companies in the Russell 1000 Index, which represent approximately 26% of
the total market capitalization of the Russell 1000 Index. The Lipper
Multi-Cap Core Funds Index is the average of the 30 largest funds in the
Lipper Multi-Cap Core Funds Category. Source of the Russell data is
Standard & Poor's Micropal. Source of the Lipper index data is Lipper Inc.
9
SCHEDULES OF INVESTMENTS IN SECURITIES June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
STRONG BALANCED FUND
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Common Stocks 65.1%
Aerospace - Defense 0.8%
The Boeing Company 14,400 $ 494,208
General Dynamics Corporation 3,500 253,750
Raytheon Company 30,300 995,052
---------------
1,743,010
Auto Manufacturers - Domestic 0.1%
Ford Motor Company 27,100 297,829
Banks - Money Center 4.6%
Bank of America Corporation 29,850 2,359,045
The Bank of New York Company, Inc. 18,100 520,375
Citigroup, Inc. 102,900 4,404,120
J.P. Morgan Chase & Company 81,500 2,785,670
---------------
10,069,210
Banks - Northeast 0.2%
North Fork Bancorporation, Inc. 10,800 367,848
Banks - Super Regional 3.1%
FleetBoston Financial Corporation 36,800 1,093,328
Mellon Financial Corporation 27,000 749,250
National City Corporation 16,000 523,360
U.S. Bancorp 55,200 1,352,400
Wachovia Corporation 34,200 1,366,632
Wells Fargo Company 34,700 1,748,880
---------------
6,833,850
Beverages - Alcoholic 0.2%
Anheuser-Busch Companies, Inc. 10,800 551,340
Beverages - Soft Drinks 0.8%
The Coca-Cola Company 36,400 1,689,324
Building - Construction
Products/Miscellaneous 0.2%
Masco Corporation 16,500 393,525
Building - Resident/Commercial 0.4%
Centex Corporation 10,200 793,458
Chemicals - Basic 0.3%
The Dow Chemical Company 24,600 761,616
Chemicals - Specialty 0.2%
Praxair, Inc. 6,900 414,690
Commercial Services - Advertising 0.1%
Omnicom Group, Inc. 3,300 236,610
Commercial Services - Miscellaneous 0.1%
Paychex, Inc. 10,200 298,962
Commercial Services - Schools 0.1%
Apollo Group, Inc. Class A (b) 2,800 172,928
Computer - Local Networks 1.2%
Cisco Systems, Inc. (b) 145,500 2,428,395
Juniper Networks, Inc. (b) 21,300 263,481
---------------
2,691,876
Computer - Manufacturers 1.5%
Dell, Inc. (b) 41,600 1,329,536
Hewlett-Packard Company 77,700 1,655,010
Sun Microsystems, Inc. (b) 55,800 256,680
---------------
3,241,226
Computer - Memory Devices 0.6%
EMC Corporation (b) 130,100 1,362,147
Computer - Services 1.0%
Computer Sciences Corporation (b) 11,000 419,320
International Business Machines Corporation 22,500 1,856,250
---------------
2,275,570
Computer Software - Desktop 2.2%
Microsoft Corporation 185,300 4,745,533
Computer Software -
Education/Entertainment 0.2%
Electronic Arts, Inc. (b) 6,700 495,733
Computer Software - Enterprise 0.9%
Computer Associates International, Inc. 10,300 229,484
Oracle Systems Corporation (b) 80,600 968,812
Siebel Systems, Inc. (b) 25,900 247,086
VERITAS Software Corporation (b) 18,500 530,395
---------------
1,975,777
Cosmetics - Personal Care 0.7%
Avon Products, Inc. 9,900 615,780
The Gillette Company 16,700 532,062
Kimberly-Clark Corporation 8,200 427,548
---------------
1,575,390
Diversified Operations 4.4%
AOL Time Warner, Inc. (b) 80,900 1,301,681
E.I. Du Pont de Nemours & Company 23,900 995,196
General Electric Company 158,600 4,548,648
Honeywell International, Inc. 19,100 512,835
3M Co. 8,200 1,057,636
Tyco International, Ltd. 40,200 762,996
United Technologies Corporation 7,350 520,601
---------------
9,699,593
Electronics - Measuring Instruments 0.3%
Danaher Corporation 7,800 530,790
Teradyne, Inc. (b) 12,100 209,451
---------------
740,241
Electronics - Semiconductor Equipment 0.3%
Applied Materials, Inc. (b) 44,200 701,012
Electronics - Semiconductor
Manufacturing 2.0%
Broadcom Corporation Class A (b) 24,500 610,295
Intel Corporation 125,400 2,606,314
Maxim Integrated Products, Inc. 5,100 174,369
Micron Technology, Inc. (b) 22,100 257,023
PMC-Sierra, Inc. (b) 12,600 147,798
Texas Instruments, Inc. 29,700 522,720
---------------
4,318,519
Finance - Consumer/Commercial Loans 0.5%
MBNA Corporation 25,000 521,000
SLM Corporation 17,100 669,807
---------------
1,190,807
Finance - Investment Brokers 0.9%
The Goldman Sachs Group, Inc. 13,300 1,113,875
Merrill Lynch & Company, Inc. 6,000 280,080
Morgan Stanley 15,600 666,900
---------------
2,060,855
Finance - Investment Management 0.3%
Franklin Resources, Inc. 18,700 730,609
10
- --------------------------------------------------------------------------------
STRONG BALANCED FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Finance - Mortgage & Related Services 0.5%
Fannie Mae 10,900 $ 735,096
Freddie Mac 8,200 416,314
---------------
1,151,410
Finance - Savings & Loan 0.3%
Washington Mutual, Inc. 14,000 578,200
Financial Services - Miscellaneous 1.1%
American Express Company 39,800 1,664,038
First Data Corporation 17,900 741,776
---------------
2,405,814
Food - Miscellaneous Preparation 1.1%
General Mills, Inc. 10,700 507,287
Kellogg Company 17,500 601,475
PepsiCo, Inc. 28,000 1,246,000
---------------
2,354,762
Insurance - Brokers 0.2%
Marsh & McLennan Companies, Inc. 10,400 531,128
Insurance - Diversified 1.0%
American International Group, Inc. 38,900 2,146,502
Insurance - Life 0.4%
Lincoln National Corporation 10,700 381,241
MetLife, Inc. 14,300 404,976
---------------
786,217
Insurance - Property/Casualty/Title 0.8%
Ambac Financial Group, Inc. 4,300 284,875
Everest Re Group, Ltd. 9,700 742,050
XL Capital, Ltd. Class A 9,700 805,100
---------------
1,832,025
Internet - E*Commerce 0.2%
eBay, Inc. (b) 5,100 531,318
Internet - Internet Service
Provider/Content 0.3%
Yahoo! Inc. (b) 22,800 746,928
Leisure - Gaming 0.4%
MGM Mirage, Inc. (b) 10,500 358,890
Station Casinos, Inc. (b) 19,700 497,425
---------------
856,315
Leisure - Services 0.3%
The Walt Disney Company 31,900 630,025
Machinery - Construction/Mining 0.2%
Caterpillar, Inc. 9,600 534,336
Machinery - Farm 0.2%
Deere & Company 8,300 379,310
Machinery - General Industrial 0.2%
Ingersoll-Rand Company Class A 8,100 383,292
Media - Cable TV 0.6%
Comcast Corporation Class A (Non-Voting) (b) 38,100 1,098,423
EchoStar Communications Corporation
Class A (b) 6,200 214,644
---------------
1,313,067
Media - Newspapers 0.4%
Gannett Company, Inc. 10,100 775,781
Media - Radio/TV 1.2%
Clear Channel Communications, Inc. (b) 26,000 1,102,140
Viacom, Inc. Class B (b) 35,000 1,528,100
---------------
2,630,240
Medical - Biomedical/Genetics 1.0%
Amgen, Inc. (b) 29,664 1,970,876
Genzyme Corporation (b) 6,100 254,980
---------------
2,225,856
Medical - Drug/Diversified 1.7%
Abbott Laboratories 26,800 1,172,768
Johnson & Johnson 48,500 2,507,450
---------------
3,680,218
Medical - Ethical Drugs 4.9%
Bristol-Myers Squibb Company 36,800 999,120
Forest Laboratories, Inc. (b) 10,400 569,400
Eli Lilly & Company 18,700 1,289,739
Merck & Company, Inc. 36,400 2,204,020
Pfizer, Inc. 131,380 4,486,627
Schering-Plough Corporation 9,100 169,260
Wyeth 21,300 970,215
---------------
10,688,381
Medical - Generic Drugs 0.2%
Teva Pharmaceutical Industries, Ltd. ADR 7,100 404,203
Medical - Health Maintenance
Organizations 0.7%
Aetna, Inc. 12,600 758,520
UnitedHealth Group, Inc. 15,200 763,800
---------------
1,522,320
Medical - Products 1.4%
Alcon, Inc. 7,500 342,750
Boston Scientific Corporation (b) 11,700 714,870
Medtronic, Inc. 16,700 801,099
St. Jude Medical, Inc. (b) 14,300 822,250
Stryker Corporation 5,000 346,850
---------------
3,027,819
Medical - Wholesale Drugs/Sundries 0.5%
AmerisourceBergen Corporation 5,400 374,490
Cardinal Health, Inc. 11,000 707,300
---------------
1,081,790
Medical/Dental - Supplies 0.1%
Becton, Dickinson & Company 7,500 291,375
Metal Ores - Miscellaneous 0.2%
Alcoa, Inc. 21,300 543,150
Metal Products - Fasteners 0.1%
Illinois Tool Works, Inc. 4,900 322,665
Oil & Gas - Field Services 0.4%
Schlumberger, Ltd. 20,200 960,914
Oil & Gas - International Integrated 2.6%
ChevronTexaco Corporation 17,500 1,263,500
ConocoPhillips 11,300 619,240
Exxon Mobil Corporation 107,200 3,849,552
---------------
5,732,292
Oil & Gas - Machinery/Equipment 0.2%
Baker Hughes, Inc. 16,400 550,548
Oil & Gas - United States Exploration &
Production 0.6%
Apache Corporation 19,715 1,282,658
11
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
STRONG BALANCED FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Real Estate Development 0.2%
Simon Property Group, Inc. 9,600 $ 374,688
Retail - Consumer Electronics 0.4%
Best Buy Company, Inc. (b) 22,000 966,240
Retail - Department Stores 0.6%
Federated Department Stores, Inc. 14,100 519,585
Kohl's Corporation (b) 14,500 745,010
---------------
1,264,595
Retail - Home Furnishings 0.2%
Bed Bath & Beyond, Inc. (b) 10,500 407,505
Retail - Major Discount Chains 2.3%
Target Corporation 29,600 1,120,064
Wal-Mart Stores, Inc. 72,800 3,907,176
---------------
5,027,240
Retail - Restaurants 0.3%
McDonald's Corporation 29,800 657,388
Retail - Super/Mini Markets 0.2%
The Kroger Company (b) 27,200 453,696
Retail/Wholesale - Building Products 1.1%
The Home Depot, Inc. 54,800 1,814,976
Lowe's Companies, Inc. 12,800 549,760
---------------
2,364,736
Shoes & Related Apparel 0.2%
NIKE, Inc. Class B 8,600 460,014
Soap & Cleaning Preparations 0.9%
The Procter & Gamble Company 21,100 1,881,698
Telecommunications - Cellular 0.3%
Nextel Communications, Inc. Class A (b) 29,000 524,320
Sprint Corporation - PCS Group (b) 40,500 232,875
---------------
757,195
Telecommunications - Equipment 0.8%
Corning, Inc. (b) 83,600 617,804
Lucent Technologies, Inc. (b) 102,100 207,263
Motorola, Inc. 36,800 347,024
UTStarcom, Inc. (b) 14,200 505,094
---------------
1,677,185
Telecommunications - Services 1.9%
BellSouth Corporation 34,000 905,420
SBC Communications, Inc. 56,500 1,443,575
Verizon Communications, Inc. 44,000 1,735,800
---------------
4,084,795
Tobacco 0.7%
Altria Group, Inc. 33,400 1,517,696
Transportation - Air Freight 0.5%
FedEx Corporation 16,400 1,017,292
Transportation - Airline 0.1%
Delta Air Lines, Inc. 13,000 190,840
Transportation - Rail 0.4%
Union Pacific Corporation 14,900 864,498
Trucks & Parts - Heavy Duty 0.1%
PACCAR, Inc. 3,400 229,704
Utility - Electric Power 1.7%
American Electric Power Company, Inc. 18,900 563,787
Dominion Resources, Inc. 15,200 976,904
Duke Energy Corporation 14,900 297,255
Entergy Corporation 18,500 976,430
Exelon Corporation 16,800 1,004,808
---------------
3,819,184
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $127,025,866) 143,326,136
- -------------------------------------------------------------------------------
Corporate Bonds 12.8%
AKI, Inc. Senior Notes,
10.50%, Due 7/01/08 $ 300,000 309,000
AOL Time Warner, Inc. Notes:
5.625%, Due 5/01/05 300,000 318,655
6.875%, Due 5/01/12 150,000 171,590
AT&T Corporation Senior Notes,
7.00%, Due 11/15/06 250,000 278,304
AT&T Wireless Services, Inc. Senior Notes,
7.875%, Due 3/01/11 350,000 414,092
Aladdin Gaming Holdings LLC/Aladdin
Capital Corporation Senior Discount
Notes, 13.50%, Due 3/01/10
(Defaulted Effective 9/21/01) (g) 3,700,000 37,000
Altria Group, Inc. Notes,
7.65%, Due 7/01/08 100,000 111,876
Anadarko Petroleum Corporation Notes,
6.125%, Due 3/15/12 150,000 170,207
Bank of America Corporation Subordinated
Notes, 7.40%, Due 1/15/11 650,000 799,792
Bottling Group LLC Senior Notes,
4.625%, Due 11/15/12 (d) 250,000 261,797
British Sky Broadcasting Group PLC
Yankee Notes, 6.875%, Due 2/23/09 165,000 186,715
British Telecom PLC Yankee Notes,
8.125%, Due 12/15/10 290,000 367,395
Capital One Bank Medium-Term Notes,
6.50%, Due 6/13/13 210,000 208,407
Cendant Corporation Notes,
6.25%, Due 3/15/10 100,000 111,393
Centerpoint Energy Resources Corporation
Senior Notes, 7.875%, Due 4/01/13 (d) 100,000 115,226
Citigroup, Inc. Notes,
5.50%, Due 8/09/06 575,000 631,730
Citizens Communications Company
Senior Notes, 8.50%, Due 5/15/06 200,000 232,143
Clear Channel Communications, Inc.
Senior Notes, 5.75%, Due 1/15/13 155,000 168,007
Comcast Corporation Senior Notes,
5.85%, Due 1/15/10 250,000 275,526
Conoco Funding Company Notes,
6.35%, Due 10/15/11 250,000 292,500
Core Investment Grade Trust Pass-Thru
Certificates, 4.727%, Due 11/30/07 250,000 265,507
Cox Communications, Inc. Notes,
7.75%, Due 8/15/06 250,000 288,649
Credit Suisse First Boston USA, Inc. Notes:
4.625%, Due 1/15/08 200,000 213,794
6.50%, Due 1/15/12 250,000 287,368
Daimler Chrysler North America Holding
Corporation Guaranteed Notes:
4.05%, Due 6/04/08 100,000 99,141
7.75%, Due 1/18/11 200,000 232,945
Deutsche Telekom International
Finance Notes, 8.50%, Due 6/15/10 200,000 246,077
12
- --------------------------------------------------------------------------------
STRONG BALANCED FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Devon Financing Corporation ULC Notes,
6.875%, Due 9/30/11 $ 350,000 $ 411,224
Dominion Resources, Inc. Notes,
6.25%, Due 6/30/12 210,000 238,260
Dow Chemical Company Notes,
6.00%, Due 10/01/12 100,000 108,983
EOP Operating LP Notes,
6.75%, Due 2/15/12 350,000 399,314
European Investment Bank Yankee Notes:
3.00%, Due 6/16/08 290,000 296,613
4.625%, Due 3/01/07 500,000 543,348
Fiserv, Inc. Notes,
4.00%, Due 4/15/08 (d) 250,000 257,730
Florida Power & Light Company First
Mortgage Notes, 6.875%, Due 12/01/05 110,000 122,870
Ford Motor Credit Company Notes:
6.50%, Due 1/25/07 250,000 263,239
7.25%, Due 10/25/11 150,000 154,450
7.375%, Due 2/01/11 455,000 471,091
7.60%, Due 8/01/05 160,000 171,873
France Telecom SA Yankee Notes,
9.25%, Due 3/01/11 350,000 441,265
General Electric Capital Corporation
Medium-Term Notes, Series A:
5.875%, Due 2/15/12 550,000 616,289
6.50%, Due 12/10/07 250,000 288,055
General Mills, Inc. Notes,
3.875%, Due 11/30/07 300,000 314,616
General Motors Acceptance Corporation Notes:
5.125%, Due 5/09/08 350,000 346,226
6.875%, Due 9/15/11 370,000 371,810
7.125%, Due 7/15/13 185,000 184,273
Goldman Sachs Group, Inc. Senior Notes,
5.70%, Due 9/01/12 340,000 374,208
Goodrich Corporation Senior Notes,
7.625%, Due 12/15/12 100,000 114,265
Health Care Property Investment, Inc. Notes,
6.875%, Due 6/08/15
(Remarketing Date 6/08/05) 150,000 160,714
Health Care Property Investment, Inc.
Senior Notes, 6.00%, Due 3/01/15 200,000 207,774
Household Finance Corporation Senior Notes,
5.875%, Due 2/01/09 580,000 647,401
International Lease Finance Corporation Notes,
5.875%, Due 5/01/13 200,000 215,721
International Paper Company Notes,
5.85%, Due 10/30/12 300,000 327,560
J.P. Morgan Chase & Company Subordinated
Notes, 6.625%, Due 3/15/12 300,000 346,686
Kraft Foods, Inc. Notes,
5.625%, Due 11/01/11 250,000 272,874
Kroger Company Notes,
6.75%, Due 4/15/12 100,000 114,333
Lehman Brothers Holdings, Inc. Notes,
4.00%, Due 1/22/08 400,000 417,314
M&T Bank Corporation, Floating Rate
Subordinated Notes, 3.85%, Due 4/01/13 250,000 255,376
Merrill Lynch & Company, Inc.
Medium-Term Notes,
Tranche #312, 4.00%, Due 11/15/07 200,000 207,913
MetLife, Inc. Debentures,
3.911%, Due 5/15/05 205,000 213,617
MidAmerican Energy Holdings Company
Senior Notes, 7.23%, Due 9/15/05 345,000 381,707
Morgan Stanley Notes,
5.80%, Due 4/01/07 500,000 552,657
Morgan Stanley Tracers,
6.799%, Due 6/15/12 (d) 780,000 905,237
National Rural Utilities Cooperative
Finance Corporation Notes,
6.50%, Due 3/01/07 300,000 340,144
Newmont Mining Corporation Notes,
8.625%, Due 5/15/11 100,000 124,963
NiSource Finance Corporation Notes,
7.625%, Due 11/15/05 305,000 333,654
Norfolk Southern Corporation Senior Notes,
6.00%, Due 4/30/08 250,000 279,847
Normandy Finance, Ltd. Yankee Notes,
7.625%, Due 7/15/08 (d) 200,000 222,500
Ohio Edison Company Senior Notes,
4.00%, Due 5/01/08 (d) 150,000 154,026
PNC Funding Corporation Subordinated Notes,
6.125%, Due 2/15/09 450,000 516,978
Pemex Project Funding Master Trust Notes,
7.375%, Due 12/15/14 310,000 340,225
Principal Life Global Funding I
Medium-Term Notes,
Tranche #23, 3.625%, Due 4/30/08 (d) 250,000 255,920
Province of Quebec Notes,
5.00%, Due 7/17/09 335,000 367,773
Raytheon Company Notes,
6.55%, Due 3/15/10 200,000 224,160
Reliant Energy Resources Corporation Notes,
7.75%, Due 2/15/11 100,000 114,126
Republic of Chile Yankee Bonds,
5.50%, Due 1/15/13 150,000 159,075
Republic of Italy Yankee Notes,
3.625%, Due 9/14/07 300,000 314,705
Safeway, Inc. Notes,
4.80%, Due 7/16/07 200,000 209,349
Salomon Smith Barney Holdings, Inc.
Senior Notes, 5.875%, Due 3/15/06 510,000 560,238
Sears Roebuck Acceptance Corporation Notes,
6.75%, Due 8/15/11 100,000 113,048
Sovereign Bancorp Senior Notes,
10.50%, Due 11/15/06 150,000 180,360
Sprint Capital Corporation Notes,
6.125%, Due 11/15/08 500,000 543,411
Telus Corporation Yankee Notes,
8.00%, Due 6/01/11 200,000 232,000
Tenet Healthcare Corporation Senior Notes,
6.375%, Due 12/01/11 150,000 139,500
Texas Eastern Transmission Corporation Notes,
5.25%, Due 7/15/07 320,000 344,069
Travelers Property and Casualty Corporation
Senior Notes, 5.00%, Due 3/15/13 150,000 156,492
Tyson Foods, Inc. Notes:
6.625%, Due 10/01/04 210,000 217,740
7.25%, Due 10/01/06 100,000 111,757
US Bancorp Medium-Term Notes,
3.125%, Due 3/15/08 300,000 302,986
Union Pacific Corporation Notes,
5.75%, Due 10/15/07 305,000 338,901
United Mexican States Yankee Notes,
7.50%, Due 1/14/12 500,000 573,125
Verizon New York, Inc. Debentures, Series A,
6.875%, Due 4/01/12 300,000 353,865
Wal-Mart Stores, Inc. Notes,
4.375%, Due 7/12/07 365,000 391,501
13
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
STRONG BALANCED FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Waste Management, Inc. Senior Notes,
6.50%, Due 11/15/08 $ 200,000 $ 228,930
Wells Fargo & Company Senior Notes,
5.25%, Due 12/01/07 415,000 456,326
XTO Energy, Inc. Senior Notes,
6.25%, Due 4/15/13 (d) 140,000 149,450
- -------------------------------------------------------------------------------
Total Corporate Bonds (Cost $27,336,877) 28,162,866
- -------------------------------------------------------------------------------
Non-Agency Mortgage &
Asset-Backed Securities 2.9%
ABN AMRO Mortgage Corporation
Adjustable Rate Pass-Thru Certificates,
Series 2002-1A, Class IIA-3,
5.35%, Due 6/25/32 276,839 282,612
Asset Securitization Corporation Commercial
Mortgage Pass-Thru Certificates:
Series 1995-MD4, Class A-1,
7.10%, Due 8/13/29 1,444,123 1,573,808
Series 1996-MD6, Class A-1B,
6.88%, Due 11/13/29 1,035,000 1,053,034
Community Program Loan Trust Bonds,
Series 1987, Class A-4, 4.50%, Due 10/01/18 1,343,597 1,378,902
Countrywide, Inc. Floating Rate Asset-Backed
Certificates, Series 2002-S3, Class A-1,
1.21%, Due 6/25/17 146,929 146,958
Holmes Financing Number 1 PLC Floating
Rate Notes, Series 1, Class 1A,
1.43%, Due 7/15/05 750,000 750,000
Topsail CBO, Ltd. Subordinated Bonds,
Series 1A, Class C, 10.90%, Due 4/23/13
(Acquired 4/23/02-4/23/03;
Cost $733,873) (Defaulted Effective
4/23/03) (d) (g) 833,978 125,096
Volkswagen Credit Auto Master Owner
Trust Floating Rate Loan-Backed Notes,
Series 2000-1, Class A, 1.26%, Due 8/20/07 650,000 652,315
Washington Mutual Mortgage Pass-Thru
Certificates, Series 2002-AR4, Class A-7,
5.551%, Due 4/26/32 371,629 377,913
- -------------------------------------------------------------------------------
Total Non-Agency Mortgage &
Asset-Backed Securities (Cost $6,827,666) 6,340,638
- -------------------------------------------------------------------------------
United States Government
& Agency Issues 14.4%
FHLMC Adjustable Rate Participation
Certificates, Pool #865469,
6.755%, Due 8/01/25 330,452 341,993
FHLMC Notes:
5.50%, Due 7/15/06 150,000 166,113
5.75%, Due 3/15/09 1,115,000 1,282,286
6.00%, Due 6/15/11 1,800,000 2,105,588
FHLMC Participation Certificates:
6.50%, Due 12/01/10 1,000,000 1,057,518
10.25%, Due 3/01/15 37,509 42,067
10.50%, Due 1/01/16 6,114 7,016
FHLMC TBA, 5.00%, Due 8/15/18 (f) 1,240,000 1,277,587
FNMA Guaranteed Mortgage Adjustable
Rate Pass-Thru Certificates,
6.96%, Due 1/01/07 2,087,224 2,355,420
FNMA Guaranteed Real Estate Mortgage
Investment Conduit Pass-Thru Trust,
9.50%, Due 11/25/31 1,018,234 1,186,879
FNMA Guaranteed Real Estate Mortgage
Investment Conduit Variable Rate Pass-
Thru Certificates, Series G92-61, Class FJ,
3.31%, Due 10/25/22 194,941 196,438
FNMA Notes:
3.25%, Due 11/15/07 1,000,000 1,036,856
3.50%, Due 9/15/04 3,000,000 3,085,632
4.375%, Due 10/15/06 200,000 215,661
5.25%, Due 6/15/06 1,500,000 1,648,342
5.50%, Due 2/15/06 1,560,000 1,713,590
5.75%, Due 2/15/08 2,950,000 3,369,319
GNMA Guaranteed Pass-Thru
Certificates, 7.50%, Due 12/15/07 332,327 347,103
United States Treasury Notes:
1.25%, Due 5/31/05 500,000 499,863
2.625%, Due 5/15/08 615,000 620,814
3.25%, Due 8/15/07 840,000 876,915
3.50%, Due 11/15/06 1,790,000 1,887,403
3.625%, Due 5/15/13 905,000 912,354
4.00%, Due 11/15/12 805,000 837,924
4.75%, Due 11/15/08 545,000 604,333
5.75%, Due 11/15/05 1,025,000 1,128,421
6.50%, Due 2/15/10 90,000 109,213
6.625%, Due 5/15/07 160,000 187,238
10.375%, Due 11/15/12 1,985,000 2,644,780
- -------------------------------------------------------------------------------
Total United States Government &
Agency Issues (Cost $30,772,091) 31,744,666
- -------------------------------------------------------------------------------
Short-Term Investments (a) 10.7%
Corporate Bonds 0.2%
Regency Centers LP Notes, 7.40%,
Due 4/01/04 250,000 260,967
WMX Technologies, Inc. Notes, 8.00%,
Due 4/30/04 110,000 115,177
---------------
376,144
Collateral Received for Securities
Lending (h) 5.3%
Money Market Funds 3.6%
Deutsche Daily Assets Fund -
Institutional Class 7,899,586 7,899,586
Repurchase Agreements 1.7%
Barclays Capital, Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase proceeds
$1,256,947); Collateralized by:
United States Government & Agency Issues $ 1,256,900 1,256,900
Goldman, Sachs and Company (Dated 6/30/03),
1.22%, Due 7/01/03 (Repurchase proceeds
$1,256,943); Collateralized by:
United States Government & Agency Issues 1,256,900 1,256,900
Lehman Brothers Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase proceeds
$1,256,947); Collateralized by:
United States Government & Agency Issues 1,256,900 1,256,900
---------------
3,770,700
---------------
Total Collateral Received for
Securities Lending 11,670,286
Repurchase Agreements 4.7%
ABN AMRO Inc. (Dated 6/30/03),
1.20%, Due 7/01/03 (Repurchase proceeds
$9,500,317); Collateralized by: United States
Government & Agency Issues (e) 9,500,000 9,500,000
14
- -------------------------------------------------------------------------------
STRONG BALANCED FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
State Street Bank (Dated 6/30/03),
0.75%, Due 7/01/03 (Repurchase proceeds
$819,017); Collateralized by: United States
Government & Agency Issues (e) $ 819,000 $ 819,000
---------------
Total Repurchase Agreements 10,319,000
United States Government & Agency
Issues 0.5%
United States Treasury Bills,
Due 8/14/03 thru 9/04/03 (c) 945,000 943,774
United States Treasury Notes, 5.25%,
Due 8/15/03 140,000 140,793
---------------
1,084,567
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $23,445,281) 23,449,997
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Total Investments in Securities (Cost $215,407,781) 105.9% 233,024,303
Other Assets and Liabilities, Net (5.9%) (12,991,716)
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 220,032,587
===============================================================================
FUTURES
- --------------------------------------------------------------------------------
Underlying Unrealized
Expiration Face Amount Appreciation/
Date at Value (Depreciation)
- --------------------------------------------------------------------------------
Purchased:
20 Two-Year U. S. Treasury Notes 9/03 $ 4,325,938 $ 1,790
Sold:
25 Ten-Year U.S. Treasury Notes 9/03 2,935,938 18,448
STRONG LARGE CAP CORE FUND
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Common Stocks 95.6%
Banks - Money Center 9.1%
Bank of America Corporation 1,500 $ 118,545
Citigroup, Inc. 3,900 166,920
J.P. Morgan Chase & Company 2,500 85,450
---------------
370,915
Banks - Southeast 1.6%
Synovus Financial Corporation 3,000 64,500
Banks - Super Regional 1.5%
Northern Trust Company 1,500 62,685
Beverages - Alcoholic 1.8%
Anheuser-Busch Companies, Inc. 1,400 71,470
Building - Construction Products/
Miscellaneous 1.4%
The Stanley Works 2,100 57,960
Building - Resident/Commercial 5.0%
Centex Corporation 900 70,011
Lennar Corporation Class A 900 64,350
Lennar Corporation Class B 90 6,183
Pulte Homes, Inc. 1,000 61,660
---------------
202,204
Computer - Local Networks 1.9%
Cisco Systems, Inc. (b) 4,600 76,774
Computer - Manufacturers 1.8%
Dell, Inc. (b) 2,300 73,508
Computer - Services 2.6%
International Business Machines Corporation 1,300 107,250
Computer Software - Desktop 3.6%
Microsoft Corporation 5,800 148,538
Computer Software - Enterprise 1.5%
Oracle Systems Corporation (b) 5,000 60,100
Diversified Operations 7.9%
AOL Time Warner, Inc. (b) 4,000 64,360
General Electric Company 5,400 154,872
3M Co. 800 103,184
---------------
322,416
Electronics - Semiconductor Manufacturing 2.9%
Intel Corporation 5,600 116,390
Finance - Consumer/Commercial Loans 1.2%
SLM Corporation 1,200 47,004
Finance - Investment Brokers 4.2%
The Goldman Sachs Group, Inc. 1,000 83,750
Merrill Lynch & Company, Inc. 1,900 88,692
---------------
172,442
Insurance - Accident & Health 1.3%
AFLAC, Inc. 1,700 52,275
Insurance - Diversified 3.0%
American International Group, Inc. 2,200 121,396
Media - Newspapers 1.5%
Tribune Company 1,300 62,790
Media - Radio/TV 2.2%
Viacom, Inc. Class B (b) 2,100 91,686
Medical - Biomedical/Genetics 2.1%
Amgen, Inc. (b) 1,300 86,372
Medical - Drug/Diversified 2.8%
Johnson & Johnson 2,200 113,740
Medical - Ethical Drugs 7.1%
Bristol-Myers Squibb Company 2,300 62,445
Merck & Company, Inc. 1,800 108,990
Pfizer, Inc. 3,500 119,525
---------------
290,960
Medical - Hospitals 1.0%
HCA, Inc. 1,300 41,652
Oil & Gas - Field Services 2.5%
Schlumberger, Ltd. 2,100 99,897
Oil & Gas - International Integrated 2.4%
Exxon Mobil Corporation 2,700 96,957
Oil & Gas - International Specialty 2.9%
Kerr McGee Corporation 1,400 62,720
Unocal Corporation 1,900 54,511
---------------
117,231
15
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
STRONG LARGE CAP CORE FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Paper & Paper Products 1.5%
MeadWestvaco Corporation 2,400 $ 59,280
Retail - Department Stores 1.3%
May Department Stores Company 2,400 53,424
Retail - Major Discount Chains 4.5%
Target Corporation 2,300 87,032
Wal-Mart Stores, Inc. 1,800 96,606
---------------
183,638
Retail - Restaurants 2.0%
McDonald's Corporation 3,700 81,622
Retail/Wholesale - Building Products 3.0%
The Home Depot, Inc. 2,000 66,240
Lowe's Companies, Inc. 1,300 55,835
---------------
122,075
Soap & Cleaning Preparations 1.6%
Clorox Company 1,500 63,975
Telecommunications - Services 3.4%
SBC Communications, Inc. 2,700 68,985
Verizon Communications, Inc. 1,800 71,010
---------------
139,995
Utility - Electric Power 1.5%
The Southern Company 2,000 62,320
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $3,577,553) 3,895,441
- -------------------------------------------------------------------------------
Short-Term Investments (a) 4.3%
Repurchase Agreements
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds
$173,604); Collateralized by: United States
Government & Agency Issues (e) $ 173,600 173,600
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $173,600) 173,600
- -------------------------------------------------------------------------------
Total Investments in Securities (Cost $3,751,153) 99.9% 4,069,041
Other Assets and Liabilities, Net 0.1% 5,383
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 4,074,424
===============================================================================
STRONG GROWTH & INCOME FUND
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Common Stocks 100.1%
Aerospace - Defense 1.2%
The Boeing Company 76,100 $ 2,611,752
General Dynamics Corporation 19,500 1,413,750
Raytheon Company 162,200 5,326,648
---------------
9,352,150
Auto Manufacturers - Domestic 0.2%
Ford Motor Company 142,900 1,570,471
Banks - Money Center 7.0%
Bank of America Corporation 155,300 12,273,359
The Bank of New York Company, Inc. 94,600 2,719,750
Citigroup, Inc. 548,400 23,471,520
J.P. Morgan Chase & Company 430,900 14,728,162
---------------
53,192,791
Banks - Northeast 0.3%
North Fork Bancorporation, Inc. 56,900 1,938,014
Banks - Super Regional 4.7%
FleetBoston Financial Corporation 195,600 5,811,276
Mellon Financial Corporation 142,500 3,954,375
National City Corporation 83,200 2,721,472
U.S. Bancorp 291,000 7,129,500
Wachovia Corporation 180,300 7,204,788
Wells Fargo Company 182,700 9,208,080
---------------
36,029,491
Beverages - Alcoholic 0.4%
Anheuser-Busch Companies, Inc. 57,500 2,935,375
Beverages - Soft Drinks 1.2%
The Coca-Cola Company 193,500 8,980,335
Building - Construction Products/
Miscellaneous 0.3%
Masco Corporation 86,900 2,072,565
Building - Resident/Commercial 0.5%
Centex Corporation 54,000 4,200,660
Chemicals - Basic 0.5%
The Dow Chemical Company 132,700 4,108,392
Chemicals - Specialty 0.3%
Praxair, Inc. 36,900 2,217,690
Commercial Services - Advertising 0.2%
Omnicom Group, Inc. 17,200 1,233,240
Commercial Services - Miscellaneous 0.2%
Paychex, Inc. 54,200 1,588,602
Commercial Services - Schools 0.1%
Apollo Group, Inc. Class A (b) 15,100 932,576
Computer - Local Networks 1.9%
Cisco Systems, Inc. (b) 773,700 12,913,053
Juniper Networks, Inc. (b) 113,000 1,397,810
---------------
14,310,863
Computer - Manufacturers 2.2%
Dell, Inc. (b) 216,600 6,922,536
Hewlett-Packard Company 413,600 8,809,680
Sun Microsystems, Inc. (b) 301,900 1,388,740
---------------
17,120,956
Computer - Memory Devices 1.0%
EMC Corporation (b) 692,100 7,246,287
Computer - Services 1.6%
Computer Sciences Corporation (b) 57,300 2,184,276
International Business Machines Corporation 119,400 9,850,500
---------------
12,034,776
Computer Software - Desktop 3.3%
Microsoft Corporation 984,300 25,207,923
Computer Software -
Education/Entertainment 0.3%
Electronic Arts, Inc. (b) 35,700 2,641,443
16
- --------------------------------------------------------------------------------
STRONG GROWTH & INCOME FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Computer Software - Enterprise 1.4%
Computer Associates International, Inc. 54,900 $ 1,223,172
Oracle Systems Corporation (b) 428,100 5,145,762
Siebel Systems, Inc. (b) 138,100 1,317,474
VERITAS Software Corporation (b) 97,300 2,789,591
---------------
10,475,999
Cosmetics - Personal Care 1.1%
Avon Products, Inc. 52,700 3,277,940
The Gillette Company 83,400 2,657,124
Kimberly-Clark Corporation 44,300 2,309,802
---------------
8,244,866
Diversified Operations 6.8%
AOL Time Warner, Inc. (b) 429,600 6,912,264
E.I. Du Pont de Nemours & Company 126,000 5,246,640
General Electric Company 842,600 24,165,768
Honeywell International, Inc. 105,900 2,843,415
3M Co. 42,800 5,520,344
Tyco International, Ltd. 212,200 4,027,556
United Technologies Corporation 38,800 2,748,204
---------------
51,464,191
Electronics - Measuring Instruments 0.5%
Danaher Corporation 40,800 2,776,440
Teradyne, Inc. (b) 64,400 1,114,764
---------------
3,891,204
Electronics - Semiconductor Equipment 0.5%
Applied Materials, Inc. (b) 237,200 3,761,992
Electronics - Semiconductor Manufacturing 3.0%
Broadcom Corporation Class A (b) 130,400 3,248,264
Intel Corporation 661,200 13,742,381
Maxim Integrated Products, Inc. 27,400 936,806
Micron Technology, Inc. (b) 117,600 1,367,688
PMC-Sierra, Inc. (b) 66,900 784,737
Texas Instruments, Inc. 157,400 2,770,240
---------------
22,850,116
Finance - Consumer/Commercial Loans 0.8%
MBNA Corporation 132,700 2,765,468
SLM Corporation 90,600 3,548,802
---------------
6,314,270
Finance - Investment Brokers 1.5%
The Goldman Sachs Group, Inc. 71,500 5,988,125
Merrill Lynch & Company, Inc. 33,000 1,540,440
Morgan Stanley 84,000 3,591,000
---------------
11,119,565
Finance - Investment Management 0.5%
Franklin Resources, Inc. 101,400 3,961,698
Finance - Mortgage & Related Services 0.8%
Fannie Mae 58,300 3,931,752
Freddie Mac 43,500 2,208,495
---------------
6,140,247
Finance - Savings & Loan 0.4%
Washington Mutual, Inc. 74,000 3,056,200
Financial Services - Miscellaneous 1.7%
American Express Company 209,800 8,771,738
First Data Corporation 95,000 3,936,800
---------------
12,708,538
Food - Miscellaneous Preparation 1.6%
General Mills, Inc. 56,700 2,688,147
Kellogg Company 92,200 3,168,914
PepsiCo, Inc. 147,400 6,559,300
---------------
12,416,361
Insurance - Brokers 0.4%
Marsh & McLennan Companies, Inc. 54,800 2,798,636
Insurance - Diversified 1.6%
American International Group, Inc. 217,400 11,996,132
Insurance - Life 0.5%
Lincoln National Corporation 56,800 2,023,784
MetLife, Inc. 75,500 2,138,160
---------------
4,161,944
Insurance - Property/Casualty/Title 1.3%
Ambac Financial Group, Inc. 22,900 1,517,125
Everest Re Group, Ltd. 51,700 3,955,050
XL Capital, Ltd. Class A 51,500 4,274,500
---------------
9,746,675
Internet - E*Commerce 0.4%
eBay, Inc. (b) 26,600 2,771,188
Internet - Internet Service
Provider/Content 0.5%
Yahoo! Inc. (b) 121,900 3,993,444
Leisure - Gaming 0.6%
MGM Mirage, Inc. (b) 56,000 1,914,080
Station Casinos, Inc. (b) 104,800 2,646,200
---------------
4,560,280
Leisure - Services 0.4%
The Walt Disney Company 169,300 3,343,675
Machinery - Construction/Mining 0.4%
Caterpillar, Inc. 52,000 2,894,320
Machinery - Farm 0.3%
Deere & Company 43,800 2,001,660
Machinery - General Industrial 0.3%
Ingersoll-Rand Company Class A 42,100 1,992,172
Media - Cable TV 0.9%
Comcast Corporation Class A (Non-Voting) (b) 202,400 5,835,192
EchoStar Communications
Corporation Class A (b) 32,900 1,138,998
---------------
6,974,190
Media - Newspapers 0.5%
Gannett Company, Inc. 53,500 4,109,335
Media - Radio/TV 1.8%
Clear Channel Communications, Inc. (b) 138,800 5,883,732
Viacom, Inc. Class B (b) 186,300 8,133,858
---------------
14,017,590
Medical - Biomedical/Genetics 1.6%
Amgen, Inc. (b) 157,600 10,470,944
Genzyme Corporation (b) 32,400 1,354,320
---------------
11,825,264
Medical - Drug/Diversified 2.6%
Abbott Laboratories 141,200 6,178,912
Johnson & Johnson 256,600 13,266,220
---------------
19,445,132
17
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
STRONG GROWTH & INCOME FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Medical - Ethical Drugs 7.4%
Bristol-Myers Squibb Company 190,200 $ 5,163,930
Forest Laboratories, Inc. (b) 55,200 3,022,200
Eli Lilly & Company 99,000 6,828,030
Merck & Company, Inc. 193,000 11,686,150
Pfizer, Inc. 698,200 23,843,530
Schering-Plough Corporation 48,300 898,380
Wyeth 112,700 5,133,485
---------------
56,575,705
Medical - Generic Drugs 0.3%
Teva Pharmaceutical Industries, Ltd. ADR 37,000 2,106,410
Medical - Health Maintenance
Organizations 1.1%
Aetna, Inc. 66,800 4,021,360
UnitedHealth Group, Inc. 80,000 4,020,000
---------------
8,041,360
Medical - Products 2.1%
Alcon, Inc. 39,800 1,818,860
Boston Scientific Corporation (b) 62,400 3,812,640
Medtronic, Inc. 88,900 4,264,533
St. Jude Medical, Inc. (b) 76,400 4,393,000
Stryker Corporation 26,400 1,831,368
---------------
16,120,401
Medical - Wholesale Drugs/Sundries 0.8%
AmerisourceBergen Corporation 28,600 1,983,410
Cardinal Health, Inc. 58,600 3,767,980
---------------
5,751,390
Medical/Dental - Supplies 0.2%
Becton, Dickinson & Company 39,600 1,538,460
Metal Ores - Miscellaneous 0.4%
Alcoa, Inc. 113,700 2,899,350
Metal Products - Fasteners 0.2%
Illinois Tool Works, Inc. 25,900 1,705,515
Oil & Gas - Field Services 0.7%
Schlumberger, Ltd. 106,600 5,070,962
Oil & Gas - International Integrated 4.0%
ChevronTexaco Corporation 98,000 7,075,600
ConocoPhillips 59,000 3,233,200
Exxon Mobil Corporation 569,000 20,432,790
---------------
30,741,590
Oil & Gas - Machinery/Equipment 0.4%
Baker Hughes, Inc. 86,900 2,917,233
Oil & Gas - United States Exploration &
Production 0.9%
Apache Corporation 104,620 6,806,577
Real Estate Development 0.2%
Simon Property Group, Inc. 49,500 1,931,985
Retail - Consumer Electronics 0.7%
Best Buy Company, Inc. (b) 116,100 5,099,112
Retail - Department Stores 0.9%
Federated Department Stores, Inc. 74,800 2,756,380
Kohl's Corporation (b) 76,900 3,951,122
---------------
6,707,502
Retail - Home Furnishings 0.3%
Bed Bath & Beyond, Inc. (b) 55,800 2,165,598
Retail - Major Discount Chains 3.5%
Target Corporation 157,400 5,956,016
Wal-Mart Stores, Inc. 383,700 20,593,179
---------------
26,549,195
Retail - Restaurants 0.5%
McDonald's Corporation 180,900 3,990,654
Retail - Super/Mini Markets 0.3%
The Kroger Company (b) 144,600 2,411,928
Retail/Wholesale - Building Products 1.7%
The Home Depot, Inc. 291,500 9,654,480
Lowe's Companies, Inc. 68,200 2,929,190
---------------
12,583,670
Shoes & Related Apparel 0.3%
NIKE, Inc. Class B 46,000 2,460,540
Soap & Cleaning Preparations 1.3%
The Procter & Gamble Company 111,500 9,943,570
Telecommunications - Cellular 0.5%
Nextel Communications, Inc. Class A (b) 154,300 2,789,744
Sprint Corporation - PCS Group (b) 215,300 1,237,975
---------------
4,027,719
Telecommunications - Equipment 1.2%
Corning, Inc. (b) 444,600 3,285,594
Lucent Technologies, Inc. (b) 538,200 1,092,546
Motorola, Inc. 195,800 1,846,394
UTStarcom, Inc. (b) 75,100 2,671,307
---------------
8,895,841
Telecommunications - Services 2.8%
BellSouth Corporation 181,400 4,830,682
SBC Communications, Inc. 298,700 7,631,785
Verizon Communications, Inc. 232,300 9,164,235
---------------
21,626,702
Tobacco 1.0%
Altria Group, Inc. 175,100 7,956,544
Transportation - Air Freight 0.7%
FedEx Corporation 91,600 5,681,948
Transportation - Airline 0.1%
Delta Air Lines, Inc. 77,000 1,130,360
Transportation - Rail 0.6%
Union Pacific Corporation 79,000 4,583,580
Trucks & Parts - Heavy Duty 0.2%
PACCAR, Inc. 18,000 1,216,080
Utility - Electric Power 2.7%
American Electric Power Company, Inc. 100,400 2,994,932
Dominion Resources, Inc. 81,000 5,205,870
Duke Energy Corporation 79,200 1,580,040
Entergy Corporation 98,200 5,182,996
Exelon Corporation 88,900 5,317,109
---------------
20,280,947
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $635,566,508) $ 761,469,912
- -------------------------------------------------------------------------------
18
- -------------------------------------------------------------------------------
STRONG GROWTH & INCOME FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Short-Term Investments (a) 5.2%
Collateral Received for Securities
Lending (h) 5.0%
Money Market Funds 3.4%
Deutsche Daily Assets Fund -
Institutional Class 25,953,568 $ 25,953,568
Repurchase Agreements 1.6%
Barclays Capital, Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase proceeds
$4,129,617); Collateralized by: United
States Government & Agency Issues $ 4,129,462 4,129,462
Goldman, Sachs and Company (Dated
6/30/03), 1.22%, Due 7/01/03 (Repurchase
proceeds $4,129,602); Collateralized by:
United States Government & Agency Issues 4,129,462 4,129,462
Lehman Brothers Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase proceeds
$4,129,617); Collateralized by: United
States Government & Agency Issues 4,129,462 4,129,462
---------------
12,388,386
---------------
Total Collateral Received for
Securities Lending 38,341,954
Repurchase Agreements 0.2%
ABN AMRO Inc. (Dated 6/30/03), 1.20%,
Due 7/01/03 (Repurchase proceeds
$100,003); Collateralized by: United States
Government & Agency Issues (d) 100,000 100,000
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds
$1,350,828); Collateralized by: United
States Government & Agency Issues (d) 1,350,800 1,350,800
---------------
Total Repurchase Agreements 1,450,800
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $39,792,754) 39,792,754
- -------------------------------------------------------------------------------
Total Investments in Securities (Cost $675,359,262) 105.3% 801,262,666
Other Assets and Liabilities, Net (5.3%) (40,718,459)
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 760,544,207
===============================================================================
STRONG OPPORTUNITY FUND
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Common Stocks 88.9%
Agricultural Operations 1.4%
Monsanto Company 1,825,000 $ 39,493,000
Auto/Truck - Original Equipment 1.3%
Eaton Corporation 465,000 36,553,650
Banks - Southeast 1.3%
Synovus Financial Corporation 1,655,000 35,582,500
Banks - Super Regional 2.3%
Comerica, Inc. 710,000 33,015,000
Wachovia Corporation 850,000 33,966,000
---------------
66,981,000
Beverages - Soft Drinks 1.2%
The Pepsi Bottling Group, Inc. 1,725,000 34,534,500
Building - Air Conditioning &
Heating Products 1.1%
American Standard Companies, Inc. (b) 440,000 32,529,200
Building - Construction Products/
Miscellaneous 1.1%
Masco Corporation 1,350,000 32,197,500
Building Products - Wood 1.4%
Weyerhaeuser Company 715,000 38,610,000
Chemicals - Specialty 1.6%
Praxair, Inc. 775,000 46,577,500
Computer - Memory Devices 1.4%
Network Appliance, Inc. (b) 2,500,000 40,525,000
Computer - Services 2.4%
Accenture, Ltd. Class A (b) 1,900,000 34,371,000
Computer Sciences Corporation (b) 745,900 28,433,708
Unisys Corporation (b) 445,000 5,464,600
---------------
68,269,308
Computer Software - Security 1.7%
VeriSign, Inc. (b) 3,540,000 48,958,200
Diversified Operations 1.2%
AOL Time Warner, Inc. (b) 2,100,000 33,789,000
Electrical - Connectors 1.3%
Molex, Inc. Class A 1,655,000 38,361,245
Electronics - Measuring Instruments 1.7%
Waters Corporation (b) 1,650,000 48,064,500
Electronics - Semiconductor
Manufacturing 2.0%
Integrated Device Technology, Inc. (b) 1,960,000 21,658,000
Taiwan Semiconductor Manufacturing
Company, Ltd. Sponsored ADR (b) 3,600,000 36,288,000
---------------
57,946,000
Electronics Products - Miscellaneous 2.5%
Flextronics International, Ltd. (b) 3,360,000 34,910,400
Sanmina-SCI Corporation (b) 5,965,000 37,639,150
---------------
72,549,550
Finance - Consumer/Commercial Loans 1.3%
CIT Group, Inc. 1,540,000 37,961,000
Finance - Equity REIT 1.2%
ProLogis 1,295,000 35,353,500
Finance - Publicly Traded Investment
Funds - Equity 3.2%
iShares Trust Russell 2000 Growth Index Fund 300,000 14,175,000
iShares Trust Russell 2000 Index Fund 160,000 14,224,000
iShares Trust S&P SmallCap 600 Index Fund 265,000 29,057,250
Standard & Poor's MidCap 400
Depository Receipts 385,000 33,702,900
---------------
91,159,150
Finance - Publicly Traded Investment
Funds-Equity (Non 40 Act) 1.3%
Biotech Holders Trust 305,000 37,591,250
19
SCHEDULES OF INVESTMENTS IN SECURITIES (continued) June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
STRONG OPPORTUNITY FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Food - Miscellaneous Preparation 1.3%
General Mills, Inc. 810,000 $ 38,402,100
Insurance - Property/Casualty/Title 1.4%
Hartford Financial Services Group, Inc. 785,000 39,532,600
Internet - E*Commerce 1.5%
InterActiveCorp (b) 1,095,000 43,329,150
Internet - Internet Service
Provider/Content 0.9%
CNET Networks, Inc. (b) 4,070,000 25,356,100
Leisure - Photo Equipment/Related 0.6%
Eastman Kodak Company 580,000 15,863,000
Leisure - Services 1.5%
Carnival Corporation 1,340,000 43,563,400
Machinery - General Industrial 1.4%
Dover Corporation 1,300,000 38,948,000
Media - Cable TV 4.7%
Comcast Corporation Class A
(Non-Voting) (b) (i) 1,950,000 56,218,500
Cox Communications, Inc. Class A (b) 1,285,000 40,991,500
General Motors Corporation Class H (b) 2,765,000 35,419,650
Telewest Communications PLC (b) 39,540,000 1,092,892
---------------
133,722,542
Media - Newspapers 3.0%
The E.W. Scripps Company Class A 570,000 50,570,400
Tribune Company 710,000 34,293,000
---------------
84,863,400
Media - Radio/TV 1.5%
Liberty Media Corporation Class A (b) 3,800,000 43,928,000
Medical - Biomedical/Genetics 2.8%
Biogen, Inc. (b) 415,000 15,770,000
Genentech, Inc. (b) 665,000 47,959,800
IDEC Pharmaceuticals Corporation (b) 475,000 16,150,000
---------------
79,879,800
Medical - Ethical Drugs 1.3%
King Pharmaceuticals, Inc. (b) 2,570,000 37,933,200
Medical - Health Maintenance
Organizations 0.8%
CIGNA Corporation 495,000 23,235,300
Medical - Hospitals 1.4%
HCA, Inc. 1,210,000 38,768,400
Medical/Dental - Services 1.3%
AdvancePCS (b) 1,000,000 38,230,000
Medical/Dental - Supplies 1.6%
Apogent Technologies, Inc. (b) 2,280,000 45,600,000
Metal Products - Fasteners 1.2%
Illinois Tool Works, Inc. 515,000 33,912,750
Office - Equipment & Automation 0.7%
Canon, Inc. 430,000 19,787,039
Oil & Gas - Drilling 2.6%
ENSCO International, Inc. 1,325,000 35,642,500
GlobalSantaFe Corporation 1,685,000 39,327,900
---------------
74,970,400
Oil & Gas - International Integrated 1.5%
ConocoPhillips 800,000 43,840,000
Oil & Gas - Machinery/Equipment 1.8%
Weatherford International, Ltd. (b) 1,220,000 51,118,000
Oil & Gas - United States Exploration &
Production 2.9%
Apache Corporation 710,000 46,192,600
Devon Energy Corporation 665,000 35,511,000
---------------
81,703,600
Pollution Control - Services 1.3%
Waste Management, Inc. 1,555,000 37,459,950
Retail - Apparel/Shoe 1.5%
Nordstrom, Inc. 2,225,000 43,432,000
Retail - Consumer Electronics 1.2%
Best Buy Company, Inc. (b) 785,000 34,477,200
Retail - Department Stores 1.3%
Sears, Roebuck & Company 1,100,000 37,004,000
Retail - Major Discount Chains 1.5%
Target Corporation 1,115,000 42,191,600
Retail - Restaurants 0.7%
Brinker International, Inc. (b) 580,000 20,891,600
Retail/Wholesale - Computer/Cellular 0.5%
CDW Corporation (b) 315,900 14,468,220
Retail/Wholesale - Office Supplies 1.0%
Staples, Inc. (b) 1,600,000 29,360,000
Telecommunications - Cellular 2.6%
Sprint Corporation - PCS Group (b) 7,030,000 40,422,500
United States Cellular Corporation (b) 1,349,500 34,344,775
---------------
74,767,275
Telecommunications - Equipment 1.2%
Corning, Inc. (b) 4,750,000 35,102,500
Textile - Apparel Manufacturing 1.2%
Jones Apparel Group, Inc. (b) 1,175,000 34,380,500
Textile - Mill/Household 1.1%
Mohawk Industries, Inc. (b) 550,000 30,541,500
Transportation - Airline 0.8%
Delta Air Lines, Inc. 825,000 12,111,000
Northwest Airlines Corporation Class A (b) 826,400 9,330,056
---------------
21,441,056
Utility - Gas Distribution 1.4%
NiSource, Inc. 2,125,000 40,375,000
- -------------------------------------------------------------------------------
Total Common Stocks (Cost $2,265,897,148) 2,545,965,735
- -------------------------------------------------------------------------------
20
- --------------------------------------------------------------------------------
STRONG OPPORTUNITY FUND (continued)
Shares or
Principal Value
Amount (Note 2)
- -------------------------------------------------------------------------------
Call Options Purchased 0.1%
PSE Technology 100 Index,
Expires 7/18/03 at $491.97 (i) 466 $ 3,350,540
- -------------------------------------------------------------------------------
Total Call Options Purchased (Cost $3,076,998) 3,350,540
- -------------------------------------------------------------------------------
Short-Term Investments (a) 17.8%
Collateral Received for Securities
Lending (h) 5.2%
Money Market Funds 3.5%
Deutsche Daily Assets Fund -
Institutional Class 100,682,669 100,682,669
Repurchase Agreements 1.7%
Barclays Capital, Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase proceeds
$16,020,183); Collateralized by:
United States Government & Agency Issues $ 16,019,580 16,019,580
Goldman, Sachs and Company (Dated
6/30/03), 1.22%, Due 7/01/03 (Repurchase
proceeds $16,020,123); Collateralized by:
United States Government & Agency Issues 16,019,580 16,019,580
Lehman Brothers Inc. (Dated 6/30/03),
1.23%, Due 7/01/03 (Repurchase
proceeds $16,020,183); Collateralized by:
United States Government & Agency Issues 16,019,580 16,019,580
---------------
48,058,740
---------------
Total Collateral Received for
Securities Lending 148,741,409
Repurchase Agreements 12.6%
ABN AMRO Inc. (Dated 6/30/03), 1.20%,
Due 7/01/03 (Repurchase proceeds
$355,711,857); Collateralized by:
United States Government &
Agency Issues (e) 355,700,000 355,700,000
State Street Bank (Dated 6/30/03), 0.75%,
Due 7/01/03 (Repurchase proceeds
$6,447,034); Collateralized by:
United States Government &
Agency Issues (e) 6,446,900 6,446,900
---------------
Total Repurchase Agreements 362,146,900
- -------------------------------------------------------------------------------
Total Short-Term Investments (Cost $510,888,309) 510,888,309
- -------------------------------------------------------------------------------
Total Investments in Securities
(Cost $2,779,862,455) 106.8% 3,060,204,584
Other Assets and Liabilities, Net (6.8%) (194,341,403)
- -------------------------------------------------------------------------------
Net Assets 100.0% $ 2,865,863,181
===============================================================================
- --------------------------------------------------------------------------------
WRITTEN OPTIONS ACTIVITY
- --------------------------------------------------------------------------------
Contracts Premiums
- --------------------------------------------------------------------------------
Options outstanding at beginning of period 666 $ 2,664,000
Options written during the period 3,666 5,856,148
Options closed (866) (3,983,400)
Options expired -- --
Options exercised -- --
------------- ---------------
Options outstanding at end of period 3,466 $ 4,536,748
============= ===============
WRITTEN OPTIONS DETAIL
- --------------------------------------------------------------------------------
Contracts
(100 shares Value
per contract) (Note 2)
- -------------------------------------------------------------------------------
Comcast Corporation Class A (Non-Voting)
Calls: (Strike Price $4.88. Expiration
date is 7/18/03. Premium received
is $1,462,546.) 3,000 $ (1,230,000)
PSE Technology 100 Index
Puts: (Strike Price is $491.97. Expiration
date is 7/18/03. Premium received
is $3,074,202.) 466 (17,242)
------------- ---------------
3,466 $ (1,247,242)
============= ===============
LEGEND
- --------------------------------------------------------------------------------
(a) Short-term investments include any security which has a remaining maturity
of less than one year and investments in money market funds.
(b) Non-income producing security.
(c) All or a portion of security is pledged to cover margin requirements on
open futures contracts.
(d) Restricted security.
(e) See Note 2(J) of Notes to Financial Statements.
(f) All or a portion of security is when-issued.
(g) Illiquid security.
(h) See Note 2(M) of Notes to Financial Statements.
(i) All or a portion of security is held in conjunction with open written
options contracts.
Percentages are stated as a percent of net assets.
See Notes to Financial Statements.
21
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
(In Thousands, Except
Per Share Amounts)
Strong Strong
Balanced Large Cap
Fund Core Fund
---------- ----------
Assets:
Investments in Securities, at Value
(Cost of $215,408, and $3,751, respectively) $ 233,024 $ 4,069
Receivable for Securities Sold 2,920 --
Receivable for Fund Shares Sold 1 --
Dividends and Interest Receivable 953 5
Other Assets 36 7
---------- ----------
Total Assets 236,934 4,081
Liabilities:
Payable for Securities Purchased 4,929 --
Payable for Fund Shares Redeemed 21 --
Cash Overdraft Liability 168 --
Variation Margin Payable 5 --
Payable Upon Return of Securities on Loan 11,670 --
Accrued Operating Expenses and Other Liabilities 108 7
---------- ----------
Total Liabilities 16,901 7
---------- ----------
Net Assets $ 220,033 $ 4,074
========== ==========
Net Assets Consist of:
Capital Stock (Par Value and Paid-in Capital) $ 249,327 $ 5,121
Undistributed Net Investment Income (Loss) (45) --
Undistributed Net Realized Gain (Loss) (46,886) (1,365)
Net Unrealized Appreciation (Depreciation) 17,637 318
---------- ----------
Net Assets $ 220,033 $ 4,074
========== ==========
Capital Shares Outstanding (Unlimited Number Authorized) 12,746 460
Net Asset Value Per Share $ 17.26 $ 8.85
========== ==========
See Notes to Financial Statements.
22
STATEMENTS OF ASSETS AND LIABILITIES (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
(In Thousands,
Except As Noted)
Strong Growth
and Income Fund
---------------
Assets:
Investments in Securities, at Value (Cost of $675,359) $ 801,263
Receivable for Securities Sold 7,291
Receivable for Fund Shares Sold 68
Dividends and Interest Receivable 763
Other Assets 71
---------------
Total Assets 809,456
Liabilities:
Payable for Securities Purchased 9,876
Payable for Fund Shares Redeemed 112
Payable Upon Return of Securities on Loan 38,342
Accrued Operating Expenses and Other Liabilities 582
---------------
Total Liabilities 48,912
---------------
Net Assets $ 760,544
===============
Net Assets Consist of:
Capital Stock (Par Value and Paid-in Capital) $ 932,436
Undistributed Net Investment Income (Loss) 144
Undistributed Net Realized Gain (Loss) (297,939)
Net Unrealized Appreciation (Depreciation) 125,903
---------------
Net Assets $ 760,544
===============
Investor Class ($ and shares in full)
Net Assets $ 645,666,722
Capital Shares Outstanding (Unlimited Number Authorized) 37,113,902
Net Asset Value Per Share $ 17.40
===============
Institutional Class ($ and shares in full)
Net Assets $ 78,745,033
Capital Shares Outstanding (Unlimited Number Authorized) 4,515,863
Net Asset Value Per Share $ 17.44
===============
Advisor Class ($ and shares in full)
Net Assets $ 8,878,749
Capital Shares Outstanding (Unlimited Number Authorized) 513,156
Net Asset Value Per Share $ 17.30
===============
Class K ($ and shares in full)
Net Assets $ 27,253,703
Capital Shares Outstanding (Unlimited Number Authorized) 1,579,364
Net Asset Value Per Share $ 17.26
===============
See Notes to Financial Statements.
23
STATEMENTS OF ASSETS AND LIABILITIES (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
(In Thousands,
Except As Noted)
Strong
Opportunity
Fund
---------------
Assets:
Investments in Securities, at Value
(Cost of $2,779,862) (Including Repurchase Agreements of $410,206) $ 3,060,205
Receivable for Securities Sold 21,689
Receivable for Fund Shares Sold 416
Dividends and Interest Receivable 2,355
Other Assets 97
---------------
Total Assets 3,084,762
Liabilities:
Payable for Securities Purchased 66,154
Written Options, at Value (Premiums Received of $4,537) 1,247
Payable for Fund Shares Redeemed 1,453
Payable Upon Return of Securities on Loan 148,741
Accrued Operating Expenses and Other Liabilities 1,304
---------------
Total Liabilities 218,899
---------------
Net Assets $ 2,865,863
===============
Net Assets Consist of:
Capital Stock (Par Value and Paid-in Capital) $ 3,183,983
Undistributed Net Investment Income (Loss) (3,547)
Undistributed Net Realized Gain (Loss) (598,204)
Net Unrealized Appreciation (Depreciation) 283,631
---------------
Net Assets $ 2,865,863
===============
Investor Class ($ and shares in full)
Net Assets $ 2,740,351,218
Capital Shares Outstanding (Unlimited Number Authorized) 82,206,162
Net Asset Value Per Share $ 33.34
===============
Advisor Class ($ and shares in full)
Net Assets $ 124,726,100
Capital Shares Outstanding (Unlimited Number Authorized) 3,786,949
Net Asset Value Per Share $ 32.94
===============
Class K ($ and shares in full)
Net Assets $ 785,863
Capital Shares Outstanding (Unlimited Number Authorized) 23,518
Net Asset Value Per Share $ 33.42
===============
See Notes to Financial Statements.
24
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
For the Six Months Ended June 30, 2003 (Unaudited)
(In Thousands)
Strong Strong
Balanced Large Cap
Fund Core Fund
---------- ----------
Income:
Dividends $ 1,190 $ 32
Interest 1,331 1
---------- ----------
Total Income 2,521 33
Expenses:
Investment Advisory Fees 594 14
Administrative Fees 319 6
Custodian Fees 23 1
Shareholder Servicing Costs 364 17
Professional Fees 18 6
Federal and State Registration Fees 12 7
Other 65 4
---------- ----------
Total Expenses before Expense Offsets 1,395 55
Expense Offsets (Note 4) (40) (22)
---------- ----------
Expenses, Net 1,355 33
---------- ----------
Net Investment Income (Loss) 1,166 --
Realized and Unrealized Gain (Loss):
Net Realized Gain (Loss) on:
Investments 3,707 (336)
Futures Contracts (25) --
Forward Foreign Currency Contracts 18 --
---------- ----------
Net Realized Gain (Loss) 3,700 (336)
Net Change in Unrealized Appreciation/(Depreciation) on:
Investments 12,225 697
Futures Contracts 114 --
---------- ----------
Net Change in Unrealized Appreciation/Depreciation 12,339 697
---------- ----------
Net Gain (Loss) on Investments 16,039 361
---------- ----------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 17,205 $ 361
========== ==========
See Notes to Financial Statements.
25
STATEMENTS OF OPERATIONS (continued)
- --------------------------------------------------------------------------------
For the Six Months Ended June 30, 2003 (Unaudited)
(In Thousands)
Strong Growth
and Income
Fund
-------------
Income:
Dividends (net of foreign withholding taxes of $7) $ 5,990
Interest 131
-------------
Total Income 6,121
Expenses (Note 4):
Investment Advisory Fees 2,017
Administrative Fees 995
Custodian Fees 23
Shareholder Servicing Costs 1,636
12b-1 Fees 11
Reports to Shareholders 260
Other 134
-------------
Total Expenses before Expense Offsets 5,076
Expense Offsets (63)
-------------
Expenses, Net 5,013
-------------
Net Investment Income (Loss) 1,108
Realized and Unrealized Gain (Loss):
Net Realized Gain (Loss) on Investments (21,761)
Net Change in Unrealized Appreciation/Depreciation on
Investments 88,880
Net Gain (Loss) on Investments 67,119
-------------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 68,227
=============
See Notes to Financial Statements.
26
STATEMENTS OF OPERATIONS (continued)
- --------------------------------------------------------------------------------
For the Six Months Ended June 30, 2003 (Unaudited)
(In Thousands)
Strong
Opportunity
Fund
------------
Income:
Dividends - Unaffiliated Issuers (net of foreign withholding taxes of $5) $ 13,512
Dividends - Affiliated Issuers 917
Interest 843
------------
Total Income 15,272
Expenses (Note 4):
Investment Advisory Fees 9,624
Administrative Fees 3,856
Custodian Fees 57
Shareholder Servicing Costs 4,252
Reports to Shareholders 597
12b-1 Fees 133
Other 445
------------
Total Expenses before Expense Offsets 18,964
Expense Offsets (145)
------------
Expenses, Net 18,819
------------
Net Investment Income (Loss) (3,547)
Realized and Unrealized Gain (Loss):
Net Realized Gain (Loss) on:
Investments (143,517)
Written Options 3,801
------------
Net Realized Gain (Loss) (139,716)
Net Change in Unrealized Appreciation/Depreciation on:
Investments 541,691
Written Options 1,431
Foreign Currencies (1)
------------
Net Change in Unrealized Appreciation/Depreciation 543,121
------------
Net Gain (Loss) on Investments 403,405
------------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 399,858
============
See Notes to Financial Statements.
27
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
(In Thousands)
Strong Balanced Fund
------------------------------
Six
Months Ended Year Ended
June 30, 2003 Dec. 31, 2002
------------- -------------
(Unaudited)
Operations:
Net Investment Income (Loss) $ 1,166 $ 5,747
Net Realized Gain (Loss) 3,700 (26,054)
Net Change in Unrealized Appreciation/Depreciation 12,339 (14,413)
------------- -------------
Net Increase (Decrease) in Net Assets Resulting from Operations 17,205 (34,720)
Distributions From Net Investment Income (1,238) (5,924)
Capital Share Transactions (Note 7):
Net Increase (Decrease) in Net Assets from Capital Share Transactions (13,949) (41,363)
------------- -------------
Total Increase (Decrease) in Net Assets 2,018 (82,007)
Net Assets:
Beginning of Year 218,015 300,022
------------- -------------
End of Year $ 220,033 $ 218,015
============= =============
Undistributed Net Investment Income (Loss) $ (45) $ 27
Strong Large Cap Core Fund
------------------------------
Six
Months Ended Year Ended
June 30, 2003 Dec. 31, 2002
------------- -------------
(Unaudited)
Operations:
Net Investment Income (Loss) $ -- $ (44)
Net Realized Gain (Loss) (336) (802)
Net Change in Unrealized Appreciation/Depreciation 697 (652)
------------- -------------
Net Increase (Decrease) in Net Assets Resulting from Operations 361 (1,498)
Distributions From Net Investment Income -- --
Capital Share Transactions (Note 7):
Net Increase (Decrease) in Net Assets from Capital Share Transactions (558) (670)
------------- -------------
Total Increase (Decrease) in Net Assets (197) (2,168)
Net Assets:
Beginning of Year 4,271 6,439
------------- -------------
End of Year $ 4,074 $ 4,271
============= =============
Undistributed Net Investment Income (Loss) $ -- $ --
See Notes to Financial Statements.
28
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
(In Thousands)
Strong Growth and Income Fund
------------------------------
Six
Months Ended Year Ended
June 30, 2003 Dec. 31, 2002
------------- -------------
(Unaudited)
Operations:
Net Investment Income (Loss) $ 1,108 $ 1,193
Net Realized Gain (Loss) (21,761) (98,034)
Net Change in Unrealized Appreciation/Depreciation 88,880 (111,075)
------------- -------------
Net Increase (Decrease) in Net Assets Resulting from Operations 68,227 (207,916)
Distributions:
From Net Investment Income:
Investor Class (632) (152)
Institutional Class (483) (851)
Advisor Class (13) (41)
Class K (124) (135)
------------- -------------
Total Distributions (1,252) (1,179)
Capital Share Transactions (Note 7):
Net Increase (Decrease) in Net Assets from Capital Share Transactions 14,847 (58,649)
------------- -------------
Total Increase (Decrease) in Net Assets 81,822 (267,744)
Net Assets:
Beginning of Year 678,722 946,466
------------- -------------
End of Year $ 760,544 $ 678,722
============= =============
Undistributed Net Investment Income (Loss) $ 144 $ 288
Strong Opportunity Fund
------------------------------
Six
Months Ended Year Ended
June 30, 2003 Dec. 31, 2002
------------- -------------
(Unaudited)
Operations:
Net Investment Income (Loss) $ (3,547) $ (7,455)
Net Realized Gain (Loss) (139,716) (412,614)
Net Change in Unrealized Appreciation/Depreciation 543,121 (641,795)
------------- -------------
Net Increase (Decrease) in Net Assets Resulting from Operations 399,858 (1,061,864)
Distributions From Net Investment Income -- --
Capital Share Transactions (Note 7):
Net Increase (Decrease) in Net Assets from Capital Share Transactions (145,543) (79,788)
------------- -------------
Total Increase (Decrease) in Net Assets 254,315 (1,141,652)
Net Assets:
Beginning of Year 2,611,548 3,753,200
------------- -------------
End of Year $ 2,865,863 $ 2,611,548
============= =============
Undistributed Net Investment Income (Loss) $ (3,547) $ --
See Notes to Financial Statements.
29
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
1. Organization
The accompanying financial statements represent the Strong Core Funds (the
"Funds"), which include the following funds, each with its own investment
objectives and policies:
- Strong Balanced Fund (a series of Strong Balanced Fund, Inc.)
- Strong Large Cap Core Fund (a series of Strong Equity Funds, Inc.)
- Strong Growth and Income Fund (a series of Strong Conservative Equity
Funds, Inc.)
- Strong Opportunity Fund (a series of Strong Opportunity Fund, Inc.)
Each Fund is a diversified, open-end management investment company
registered under the Investment Company Act of 1940, as amended ("1940
Act").
Investor Class shares are available to the general public, Institutional
Class shares are available only to investors that meet certain higher
initial investment minimums, Advisor Class shares are available only
through financial professionals and Class K shares are available only
through programs managed by Strong Capital Management, Inc. (the
"Advisor"). Strong Balanced Fund and Strong Large Cap Core Fund offer
Investor Class shares. Strong Growth and Income Fund offers Investor Class,
Institutional Class, Advisor Class and Class K shares. Strong Opportunity
Fund offers Investor Class, Advisor Class and Class K shares. All classes
differ principally in their respective shareholder servicing and
distribution expenses and sales charges. All classes of shares have
identical rights to earnings, assets and voting privileges, except for
class specific expenses and exclusive rights to vote on matters affecting
only individual classes.
Effective August 30, 2002, Strong Opportunity Fund issued an additional
class of shares: Class K shares.
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 -- Securities of the Funds traded on a national
securities exchange are valued each business day at the last sales
price. Securities traded on the NASDAQ Stock Market are valued each
business day using the NASDAQ Official Closing Price ("NOCP").
Exchange-traded securities for which there were no transactions and
NASDAQ-traded securities for which there is no NOCP are valued at the
mean of the bid and ask prices. Debt securities are valued through a
commercial pricing service that determines values for normal
institutional-sized trading units of debt securities without regard to
sale or bid prices when such techniques are believed to more
accurately reflect the fair market value for such securities.
Securities for which market quotations are not readily available are
valued at fair value as determined in good faith under the general
supervision of the Board of Directors. Occasionally, events affecting
the value of foreign investments and exchange rates occur between the
time at which those items are determined and the close of trading on
the New York Stock Exchange. Such events would not normally be
reflected in a calculation of the Funds' net asset values on that day.
If events that materially affect the value of the Funds' foreign
investments or the foreign currency exchange rates occur during such
period, the investments will be valued at their fair value as
determined in good faith under the general supervision of the Board of
Directors. Securities that 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 that are restricted as
to resale or are deemed illiquid. Restricted securities are Section
4(2) commercial paper or are eligible for resale pursuant to Rule 144A
under the Securities Act of 1933. Securities are deemed illiquid based
upon guidelines established by the Funds' Board of Directors. These
securities are valued after giving due consideration to pertinent
factors, such as 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. The
aggregate cost and fair value of restricted and illiquid securities
held at June 30, 2003 are as follows:
Aggregate Aggregate Percent of
Cost Fair Value Net Assets
--------- ---------- ----------
Strong Balanced Fund $ 733,873 $ 125,096 0.1%
(B) Federal Income and Excise Taxes and Distributions to Shareholders --
The Funds intend to comply with the requirements of the Internal
Revenue Code of 1986, as amended, 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
recorded.
Undistributed income or net realized gains for financial statement
purposes may differ from federal income tax purposes due to
differences in the timing, recognition and characterization of income,
expense and capital gain items for financial statement and tax
purposes. Where appropriate, reclassifications between net asset
accounts are made for such differences
30
- --------------------------------------------------------------------------------
that are permanent in nature. The Funds may utilize earnings and
profits distributed to shareholders on redemption of shares as part of
the dividends paid deduction.
Strong Balanced Fund and Strong Growth and Income Fund generally pay
dividends from net investment income quarterly and distribute net
capital gains, if any, that they realize at least annually. Strong
Large Cap Core Fund and Strong Opportunity Fund generally pay
dividends from net investment income and distribute net capital gains,
if any, that they realize at least 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 Funds may utilize derivative
instruments including options, futures and other instruments with
similar characteristics to the extent that they are consistent with
the Funds' investment objectives and limitations. The Funds intend to
use such derivative instruments primarily to hedge or protect from
adverse movements in securities prices, foreign currencies or interest
rates. The use of these instruments may involve risks such as the
possibility that the value of the underlying assets fluctuates, the
derivative becomes illiquid, imperfect correlation exists between the
value of the instruments and the underlying securities, or that the
counterparty fails to perform its obligations.
Investments in foreign-denominated assets or forward currency
contracts may involve greater risks than domestic investments due to
currency rate fluctuations, political and economic instability,
different financial reporting standards and taxes, less liquidity,
less strict regulation of securities markets and smaller markets with
lower trading volume.
(E) Futures -- Upon entering into a futures contract, the Funds deposit in
a segregated account with their custodian, in the name of the broker,
cash and/or other liquid investments equal to the minimum "initial
margin" requirements of the exchange. Each Fund designates liquid
securities 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 futures 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 Funds may write put or call options. Premiums received
by the Funds upon writing put or call options are recorded as an asset
with a corresponding liability that 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 is closed,
expired or exercised, 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. Each
Fund designates liquid securities as collateral on open options
contracts.
(G) Foreign Currency Translation -- Investment securities and other assets
and liabilities initially expressed in foreign currencies are
converted daily 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) Short Positions -- The Funds may engage in short sale transactions.
For financial statement purposes, an amount equal to the settlement
amount is included in the Statements of Assets and Liabilities as an
asset and an equivalent liability. The amount of the liability is
subsequently marked-to-market to reflect the current value of the
short position. The Funds are liable for any dividends payable on
securities while those securities are in a short position. If the
Funds sell securities short while also holding the long position, they
may protect unrealized gains, but will lose the opportunity to profit
on such securities if the price rises. If the Funds sell securities
short when not holding the long position, they will experience a loss
if the market price of the security increases between the date of the
short sale and the date the security is replaced.
(J) Repurchase Agreements -- The Funds may enter into repurchase
agreements with institutions that the Funds' Advisor has determined
are creditworthy. Each repurchase agreement is recorded at cost, which
approximates fair value. The Funds require that the 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 Funds
31
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
to obtain those securities in the event of a default of the
counterparty. On a daily basis, the Advisor monitors the value of the
collateral, including accrued interest, to ensure it is at least equal
to the amounts owed to the Funds under each repurchase agreement.
(K) Directed Brokerage -- The Funds direct certain portfolio trades to
brokers who, in turn, pay a portion of the Funds' expenses not
attributable to the Advisor or its affiliates. Such amounts are
included in Expense Offsets reported in the Funds' Statements of
Operations and in Note 4.
(L) Earnings Credit Arrangements -- Credits are earned on positive cash
balances maintained in custodian accounts. These credits serve to
reduce the custodian's fees incurred by the Funds and are included in
Expense Offsets reported in the Funds' Statements of Operations and in
Note 4.
(M) Securities Lending -- The Funds have entered into a Securities Lending
Agreement (the "Agreement") with Deutsche Bank. Under the terms of the
Agreement, the Funds may lend portfolio securities to qualified
institutional borrowers in order to earn additional income. The
Agreement requires that loans are collateralized at all times by cash
equal to at least 102% of the market value of any loaned securities,
plus accrued interest.
At June 30, 2003, Strong Balanced Fund, Strong Growth and Income Fund
and Strong Opportunity Fund had securities with a market value of
$11,292,203, $37,034,995 and $144,049,079, respectively, on loan and
had received $11,670,286, $38,341,954 and $148,741,409, respectively,
in collateral (both included within Investments in the Statements of
Assets and Liabilities). Amounts earned as interest on investments of
cash collateral, net of rebates and other securities lending expenses,
are included in Interest in the Statements of Operations. For the six
months ended June 30, 2003, the securities lending income totaled
$6,429, $34,188 and $84,469 for Strong Balanced Fund, Strong Growth
and Income Fund and Strong Opportunity Fund, respectively.
The three primary risks associated with securities lending are: a
borrower defaulting on its obligation to return the securities loaned
resulting in a shortfall on the posted collateral; a principal loss
arising from the lending agent's investment of cash collateral; and
the inability of the lending Fund to recall a security in time to
exercise valuable voting rights or sell the security.
(N) Expenses -- The Funds and other affiliated Strong Funds contract for
certain services on a collective basis. The majority of the expenses
are directly identifiable to an individual Fund. Expenses that are not
readily identifiable to a specific Fund will be allocated in such
manner as deemed equitable, taking into consideration, among other
things, the nature and type of expense and the relative sizes of the
Strong Funds.
(O) Use of Estimates -- The preparation of financial statements in
conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and
assumptions that affect the reported amounts in these financial
statements. Actual results could differ from those estimates.
(P) 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 premiums and discounts on
the interest method. Income, expenses (other than expenses
attributable to a specific class), and realized and unrealized gains
or losses on investments are allocated to each class of shares based
on its relative shares outstanding.
3. Related Party Transactions
The Advisor provides investment advisory and related services to the Funds.
Strong Investor Services, Inc. (the "Administrator"), an affiliate of the
Advisor, provides administrative, transfer agent and related services to
the Funds. Certain officers and directors of the Funds are affiliated with
the Advisor and the Administrator. Investment advisory and administration
fees, which are established by terms of the advisory and administration
agreements, are based on the following annualized rates of the average
daily net assets of the respective Fund:
Administrative Fees
-----------------------------------------
Advisory Investor Institutional Advisor
Fees Class Class Class Class K
--------- -------- ------------- ------- -------
Strong Balanced Fund 0.60%/(1)/ 0.30% * * *
Strong Large Cap Core Fund 0.75%/(2)/ 0.30% * * *
Strong Growth and Income Fund 0.55% 0.30% 0.02% 0.30% 0.25%
Strong Opportunity Fund 0.75%/(2)/ 0.30% * 0.30% 0.25%
* Does not offer Share class.
/(1)/The Investment Advisory fees are 0.60% for the first $35 million in net
assets and 0.55% for assets above $35 million.
/(2)/The Investment Advisory fees are 0.75% for the first $4 billion in net
assets, 0.725% for the next $2 billion, and 0.70% for net assets $6 billion
and above.
The Funds' Advisor and/or Administrator may voluntarily waive or absorb
certain expenses at their discretion. The Advisor and/or Administrator has
contractually agreed to waive its fees and/or absorb expenses for Strong
Large Cap Core Fund, Strong Growth and Income Fund Class K, and Strong
Opportunity Fund Class K to keep Total Annual Operating Expenses at no more
32
- --------------------------------------------------------------------------------
than 2.00%, 0.99% and 1.20%, respectively. These contracts may only be
terminated by the Board of Directors of the Fund, but not before May
1, 2004. Transfer agent and related service fees for the Investor
Class are paid at a rate of $27.00 for each open shareholder account
and $4.20 for each closed shareholder account. Transfer agent and
related service fees for the Institutional, Advisor and K Classes are
paid at an annual rate of 0.015%, 0.20% and 0.20%, respectively, of
the average daily net asset value of each respective class. The
Administrator also allocates to each Fund certain charges or credits
resulting from transfer agency banking activities based on each
Class's level of subscription and redemption activity. Transfer Agency
Banking Charges allocated to the Funds by the Administrator, if any,
are included in Other Expenses in the Funds' Statements of Operations.
Transfer Agency Banking Credits allocated by the Administrator, if
any, serve to reduce the transfer agent expenses incurred by the Funds
and are included in Expense Offsets in the Funds' Statements of
Operations and in Note 4. The Administrator is also compensated for
certain other out-of-pocket expenses related to transfer agent
services.
Strong Growth and Income Fund and Strong Opportunity Fund have adopted
a Rule 12b-1 distribution and service plan under the 1940 Act on
behalf of each of the Fund's Advisor Class shares. Under the plan,
Strong Investments, Inc. (the "Distributor," and an affiliate of the
Advisor) is paid an annual rate of 0.25% of the average daily net
assets of the Advisor Class shares as compensation for services
provided and expenses incurred, including amounts paid to brokers or
dealers, in connection with the sale of each Fund's Advisor Class
shares. See Note 4.
The Funds may invest cash in money market funds managed by the
Advisor, subject to certain limitations.
Certain information regarding related party transactions, excluding
the effects of waivers and absorptions, for the six months ended June
30, 2003 is as follows:
Payable to/ Shareholder Transfer
(Receivable from) Servicing and Agency
Advisor or Other Expenses Banking Unaffiliated
Administrator at Paid to Charges/ Directors'
June 30, 2003 Administrator (Credits) Fees
---------------- -------------- --------- ------------
Strong Balanced Fund $ 61,300 $ 364,224 $ 5,625 $ 4,455
Strong Large Cap Core Fund 2,881 17,010 218 324
Strong Growth and Income Fund 384,777 1,636,625 20,601 14,755
Strong Opportunity Fund 942,029 4,257,985 33,921 57,685
4. Expenses and Expense Offsets
For the six months ended June 30, 2003, the class specific expenses are as
follows:
Administrative Shareholder Reports to 12b-1
Fees Servicing Costs Shareholders Fees Other
-------------- --------------- ------------ ------------ ------------
Strong Growth and Income Fund
Investor Class $ 943,907 $ 1,596,878 $ 236,175 $ -- $ 16,599
Institutional Class 7,057 5,405 21,568 -- 3,413
Advisor Class 13,348 8,919 529 11,124 456
Class K 31,062 24,822 1,493 -- 735
Strong Opportunity Fund
Investor Class 3,694,573 4,144,139 579,376 -- 38,545
Advisor Class 159,993 106,951 16,952 133,327 1,484
Class K 838 675 725 -- 114
For the six months ended June 30, 2003, the expense offsets are as follows:
Expense Directed
Waivers and Brokerage Earnings
Absorptions Credits Credits
------------ ------------ ------------
Strong Balanced Fund $ -- $ (40,191) $ (88)
Strong Large Cap Core Fund (16,600) (5,602) (1)
Strong Growth and Income Fund
Investor Class -- -- --
Institutional Class -- -- --
Class K (7,834) -- --
Advisor Class -- -- --
Fund Level -- (55,120) (247)
Strong Opportunity Fund
Investor Class -- -- --
Advisor Class -- -- --
Class K (956) -- --
Fund Level -- (141,868) (2,299)
33
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
5. Line of Credit
The Strong Funds have established a line of credit agreement ("LOC") with
certain financial institutions, which expires October 10, 2003, 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 Funds' prospectus. Principal and interest on each borrowing under the
LOC are due not more than 45 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 0.09% per annum is incurred on the
unused portion of the LOC and is allocated to all participating Strong
Funds. There were minimal borrowings under the LOC during the period. At
June 30, 2003, there were no outstanding borrowings by the Funds under the
LOC.
6. Investment Transaction
The aggregate purchases and sales of shares of long-term securities during
the six months ended June 30, 2003 are as follows:
Purchases Sales
----------------------------------- -----------------------------------
U.S. Government U.S. Government
and Agency Other and Agency Other
---------------- ---------------- ---------------- ----------------
Strong Balanced Fund $ 55,397,001 $ 188,056,115 $ 65,871,126 $ 201,972,321
Strong Large Cap Core Fund -- 2,247,624 -- 2,844,814
Strong Growth and Income Fund -- 823,175,756 -- 789,695,469
Strong Opportunity Fund -- 614,568,404 -- 738,584,157
7. Capital Share Transactions
Strong Balanced Fund
------------------------------
Six
Months Ended Year Ended
June 30, 2003 Dec. 31, 2002
------------- -------------
(Unaudited)
Capital Share Transactions of the Fund Were as Follows:
Proceeds from Shares Sold $ 15,230,793 $ 36,653,666
Transfer in from Merger (Note 10) 5,544,540 --
Proceeds from Reinvestment of Distributions 1,193,187 5,692,987
Payment for Shares Redeemed (35,917,770) (83,709,183)
------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ (13,949,250) $ (41,362,530)
============= =============
Transactions in Shares of the Fund Were as Follows:
Sold 931,987 2,180,533
Transfer in from Merger (Note 10) 348,494 --
Issued in Reinvestment of Distributions 71,725 335,854
Redeemed (2,180,367) (4,869,245)
------------- -------------
Net Increase (Decrease) in Shares of the Fund (828,161) (2,352,858)
============= =============
34
- --------------------------------------------------------------------------------
Strong Large Cap Core Fund
------------------------------
Six
Months Ended Year Ended
June 30, 2003 Dec. 31, 2002
------------- -------------
(Unaudited)
Capital Share Transactions of the Fund Were as Follows:
Proceeds from Shares Sold $ 535,163 $ 3,123,078
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (1,092,953) (3,793,251)
------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ (557,790) $ (670,173)
============= =============
Transactions in Shares of the Fund Were as Follows:
Sold 64,386 329,343
Issued in Reinvestment of Distributions -- --
Redeemed (134,749) (383,490)
------------- -------------
Net Increase (Decrease) in Shares of the Fund (70,363) (54,147)
============= =============
Strong Growth and Income Fund
------------------------------
Six
Months Ended Year Ended
June 30, 2003 Dec. 31, 2002
------------- -------------
(Unaudited)
Capital Share Transactions of Each Class of
Shares of the Fund Were as Follows:
INVESTOR CLASS
Proceeds from Shares Sold $ 134,849,993 $ 176,912,236
Proceeds from Reinvestment of Distributions 617,259 144,293
Payment for Shares Redeemed (129,034,471) (291,757,275)
------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 6,432,781 (114,700,746)
INSTITUTIONAL CLASS
Proceeds from Shares Sold 8,530,298 47,671,257
Proceeds from Reinvestment of Distributions 404,050 738,863
Payment for Shares Redeemed (4,034,129) (12,626,944)
------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 4,900,219 35,783,176
ADVISOR CLASS
Proceeds from Shares Sold 1,136,281 4,128,654
Proceeds from Reinvestment of Distributions 12,792 40,781
Payment for Shares Redeemed (3,407,595) (4,218,214)
------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions (2,258,522) (48,779)
CLASS K
Proceeds from Shares Sold 9,262,065 28,072,848
Proceeds from Reinvestment of Distributions 64,173 36,058
Payment for Shares Redeemed (3,553,719) (7,791,644)
------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 5,772,519 20,317,262
------------- -------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ 14,846,997 $ (58,649,087)
============= =============
35
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
Strong Growth and Income Fund
------------------------------
Six
Months Ended Year Ended
June 30, 2003 Dec. 31, 2002
------------- -------------
(Unaudited)
Transactions in Shares of Each Class of
the Fund Were as Follows:
INVESTOR CLASS
Sold 8,247,043 9,673,213
Issued in Reinvestment of Distributions 37,969 7,113
Redeemed (7,886,486) (16,654,781)
------------- -------------
Net Increase (Decrease) in Shares 398,526 (6,974,455)
============= =============
INSTITUTIONAL CLASS
Sold 524,642 2,589,549
Issued in Reinvestment of Distributions 24,679 44,775
Redeemed (242,974) (698,482)
------------- -------------
Net Increase (Decrease) in Shares 306,347 1,935,842
============= =============
ADVISOR CLASS
Sold 70,737 221,371
Issued in Reinvestment of Distributions 779 2,416
Redeemed (214,615) (251,851)
------------- -------------
Net Increase (Decrease) in Shares (143,099) (28,064)
============= =============
CLASS K
Sold 569,355 1,706,654
Issued in Reinvestment of Distributions 3,967 2,288
Redeemed (218,184) (484,716)
------------- -------------
Net Increase (Decrease) in Shares 355,138 1,224,226
============= =============
36
- --------------------------------------------------------------------------------
Strong Opportunity Fund
--------------------------------
Six
Months Ended Year Ended
June 30, 2003 Dec. 31, 2002
-------------- --------------
(Unaudited) (Note 1)
Capital Share Transactions of Each Class of
Shares of the Fund Were as Follows:
INVESTOR CLASS
Proceeds from Shares Sold $ 243,685,777 $ 847,954,312
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (393,280,581) (978,526,180)
-------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions (149,594,804) (130,571,868)
ADVISOR CLASS
Proceeds from Shares Sold 18,356,737 75,008,142
Proceeds from Reinvestment of Distributions -- 269
Payment for Shares Redeemed (14,348,383) (24,817,162)
-------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 4,008,354 50,191,249
CLASS K
Proceeds from Shares Sold 149,342 609,224
Proceeds from Reinvestment of Distributions -- --
Payment for Shares Redeemed (105,733) (16,832)
-------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions 43,609 592,392
-------------- --------------
Net Increase (Decrease) in Net Assets from
Capital Share Transactions $ (145,542,841) $ (79,788,227)
============== ==============
Transactions in Shares of Each Class of
the Fund Were as Follows:
INVESTOR CLASS
Sold 8,150,036 24,676,904
Issued in Reinvestment of Distributions -- --
Redeemed (13,295,473) (30,589,586)
-------------- --------------
Net Increase (Decrease) in Shares (5,145,437) (5,912,682)
============== ==============
ADVISOR CLASS
Sold 623,047 2,175,502
Issued in Reinvestment of Distributions -- 7
Redeemed (499,198) (802,712)
-------------- --------------
Net Increase (Decrease) in Shares 123,849 1,372,797
============== ==============
CLASS K
Sold 4,992 22,659
Issued in Reinvestment of Distributions -- --
Redeemed (3,546) (587)
-------------- --------------
Net Increase (Decrease) in Shares 1,446 22,072
============== ==============
37
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
June 30, 2003 (Unaudited)
8. Income Tax Information
The following information for the Funds is presented on an income tax basis
as of June 30, 2003:
Net Unrealized
Gross Gross Appreciation/
Cost of Unrealized Unrealized (Depreciation)
Investments Appreciation (Depreciation) on Investments
--------------- ------------- -------------- --------------
Strong Balanced Fund $ 222,283,625 $ 13,202,042 $ (2,461,364) $ 10,740,678
Strong Large Cap Core Fund 3,800,885 365,059 (96,903) 268,156
Strong Growth and Income Fund 715,461,122 87,145,177 (1,343,633) 85,801,544
Strong Opportunity Fund 2,826,298,105 465,650,422 (231,743,943) 233,906,479
The difference between cost amounts for financial statement and federal
income tax purposes is due primarily to timing differences in recognizing
certain gains and losses on security transactions.
The capital loss carryovers (expiring in varying amounts through 2010) as
of December 31, 2002, and tax basis post-October losses as of December 31,
2002, which are not recognized for tax purposes until the first day of the
following fiscal year, are:
Net Capital Post-October
Loss Carryovers Losses
--------------- ------------
Strong Balanced Fund $ 42,429,872 $ --
Strong Large Cap Core Fund 763,266 221,049
Strong Growth and Income Fund 235,596,155 --
Strong Opportunity Fund 340,152,837 72,206,316
9. Investments in Affiliates
Affiliated issuers, as defined under the 1940 Act, include any fund in the
Strong Family of Funds and any issuer in which the Fund's holdings of an
issuer represent 5% or more of the outstanding voting securities of the
issuer. A summary of transactions in the securities of these issuers for
the six months ended June 30, 2003 is as follows:
Investment
Balance of Gross Gross Sales Balance of Value Income
Shares Held Purchases and Shares Held June 30, Jan. 1, 2003-
Jan. 1, 2003 and Additions Reductions June 30, 2003 2003 June 30, 2003
------------ ------------- ------------ ------------- -------- -------------
Strong Opportunity Fund
-----------------------
Strong Heritage Money Fund-
Institutional Class 177,000,000 -- (177,000,000) -- $ -- $ 917,019
10. Acquisition Information
Effective March 28, 2003, Strong Balanced Fund acquired, through a
non-taxable exchange, substantially all of the net assets of Strong
Balanced Asset Fund. Strong Balanced Fund issued 348,494 shares (valued at
$5,544,540) for the outstanding shares of Strong Balanced Asset Fund at
March 28, 2003. The aggregate net assets of Strong Balanced Fund and Strong
Balanced Asset Fund immediately before the acquisition were $208,384,213
and $5,544,540, respectively. The combined net assets of Strong Balanced
Fund immediately after the acquisition were $213,928,753. The net assets of
Strong Balanced Asset Fund included net unrealized depreciation on
investments of $503,735 and accumulated net realized losses of $733,580.
Subject to IRS regulations, Strong Balanced Fund may use $709,865 of
capital loss carryovers from Strong Balanced Asset Fund.
11. Results of Special Meeting of Shareholders of Strong Balanced Asset Fund
At a Special Meeting of Shareholders of the Fund held on February 28, 2003,
shareholders approved the following proposal:
To approve the Plan of Reorganization of Strong Balanced Stock Fund, Inc.
on behalf of the Strong Balanced Asset Fund, including an amendment to the
Articles of Incorporation, as described in the Proxy Statement/Prospectus,
and the transactions it contemplates.
For Against Abstain
----------- ---------- ---------
499,438.146 31,606.094 8,599.194
12. Special Meeting of Shareholders of Strong Large Cap Core Fund
On August 1, 2003, the Strong Large Cap Core Fund's and Strong Growth and
Income Fund's Board of Directors approved the reorganization of the Strong
Large Cap Core Fund into the Strong Growth and Income Fund, subject to
shareholder approval at a meeting scheduled for October 31, 2003. Effective
after the close of the market on August 22, 2003 the Strong Large Cap Core
Fund is closed to new investors.
38
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
STRONG BALANCED FUND
- --------------------------------------------------------------------------------
Period Ended
----------------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Oct. 31, Oct. 31, Oct. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)/ 2000 1999 1998
- ------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 16.06 $ 18.84 $ 21.83 $ 24.77 $ 24.92 $ 21.14 $ 21.44
Income From Investment Operations:
Net Investment Income (Loss) 0.09 0.40 0.58 0.12 0.82 0.71 0.55
Net Realized and Unrealized Gains
(Losses) on Investments 1.21 (2.77) (2.99) (1.53) 0.61 3.75 1.75
- ------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.30 (2.37) (2.41) (1.41) 1.43 4.46 2.30
Less Distributions:
From Net Investment Income (0.10) (0.41) (0.58) (0.20) (0.83) (0.68) (0.54)
From Net Realized Gains -- -- -- (1.33) (0.75) -- (2.06)
- ------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.10) (0.41) (0.58) (1.53) (1.58) (0.68) (2.60)
- ------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 17.26 $ 16.06 $ 18.84 $ 21.83 $ 24.77 $ 24.92 $ 21.14
========================================================================================================================
Ratios and Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------
Total Return +8.1% -12.7% -11.0% -5.6% +5.7% +21.3% +11.8%
Net Assets, End of Period (In Millions) $ 220 $ 218 $ 300 $ 347 $ 372 $ 344 $ 288
Ratio of Expenses to Average Net Assets
before Expense Offsets 1.3%* 1.3% 1.2% 1.1%* 1.1% 1.1% 1.0%
Ratio of Expenses to Average Net Assets 1.3%* 1.3% 1.2% 1.1%* 1.1% 1.1% 1.0%
Ratio of Net Investment Income (Loss) to
Average Net Assets 1.1%* 2.3% 2.9% 3.3%* 3.2% 3.0% 2.5%
Portfolio Turnover Rate 114.9% 225.5% 234.1% 45.1% 150.9% 64.7% 185.9%
STRONG LARGE CAP CORE FUND
- --------------------------------------------------------------------------------
Period Ended
-----------------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000 1999 1998/(d)/
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 8.05 $ 11.01 $ 12.40 $ 13.85 $ 11.25 $ 10.00
Income From Investment Operations:
Net Investment Income (Loss) 0.00/(e)/ (0.08) (0.10) (0.09) (0.11) (0.03)
Net Realized and Unrealized Gains
(Losses) on Investments 0.80 (2.88) (1.29) (1.19) 3.41 1.28
- ---------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.80 (2.96) (1.39) (1.28) 3.30 1.25
Less Distributions:
From Net Realized Gains -- -- -- (0.17) (0.70) --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- (0.17) (0.70) --
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 8.85 $ 8.05 $ 11.01 $ 12.40 $ 13.85 $ 11.25
===========================================================================================================================
Ratios and Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------
Total Return +9.9% -26.9% -11.2% -9.2% +29.4% +12.5%
Net Assets, End of Period (In Millions) $ 4 $ 4 $ 6 $ 6 $ 5 $ 3
Ratio of Expenses to Average Net Assets
before Expense Offsets 2.9%* 2.5% 2.7% 2.0% 2.0% 2.0%*
Ratio of Expenses to Average Net Assets 1.7%* 1.8% 2.0% 2.0% 2.0% 2.0%*
Ratio of Net Investment Income (Loss)
to Average Net Assets 0.0%*/(e)/ (0.9%) (1.1%) (0.8%) (1.1%) (0.5%)*
Portfolio Turnover Rate 61.1% 269.3% 196.4% 154.9% 178.4% 59.7%
* 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, 2003 (unaudited).
(c) In 2000, the Fund changed its fiscal year-end from October to December.
(d) For the period from July 1, 1998 (public launch date) to December 31, 1998.
(e) Amount calculated is less than $0.005 or 0.05%.
See Notes to Financial Statements.
39
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG GROWTH AND INCOME FUND -- INVESTOR CLASS
- --------------------------------------------------------------------------------
Period Ended
--------------------------------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Oct. 31, Oct. 31, Oct. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)/ 2000 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 15.85 $ 20.28 $ 25.37 $ 28.34 $ 25.26 $ 18.73 $ 16.35
Income From Investment Operations:
Net Investment Income (Loss) 0.02 0.02 (0.02) (0.00)/(d)/ (0.09) (0.03) 0.03
Net Realized and Unrealized Gains
(Losses) on Investments 1.55 (4.45) (5.07) (2.65) 3.19 6.56 3.07
- -----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.57 (4.43) (5.09) (2.65) 3.10 6.53 3.10
Less Distributions:
From Net Investment Income (0.02) (0.00)/(d)/ -- -- -- (0.00)/(d)/ (0.03)
From Net Realized Gains -- -- -- (0.32) (0.02) -- (0.69)
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.02) (0.00)/(d)/ -- (0.32) (0.02) (0.00)/(d)/ (0.72)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 17.40 $ 15.85 $ 20.28 $ 25.37 $ 28.34 $ 25.26 $ 18.73
===================================================================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return +9.9% -21.8% -20.1% -9.3% +12.3% +34.9% +19.7%
Net Assets, End of Period (In
Millions) $ 646 $ 582 $ 886 $ 1,109 $ 1,228 $ 861 $ 399
Ratio of Expenses to Average Net
Assets before Expense Offsets 1.5%* 1.4% 1.3% 1.1%* 1.1% 1.1% 1.1%
Ratio of Expenses to Average Net
Assets 1.5%* 1.4% 1.3% 1.1%* 1.1% 1.1% 1.1%
Ratio of Net Investment Income
(Loss) to Average Net Assets 0.2%* 0.1% (0.1%) (0.0%)/(d)/* (0.4%) (0.1%) 0.1%
Portfolio Turnover Rate/(f)/ 109.2% 187.8% 171.9% 23.3% 122.0% 52.3% 107.5%
STRONG GROWTH AND INCOME FUND -- INSTITUTIONAL CLASS
- --------------------------------------------------------------------------------
Period Ended
---------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Oct. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)/ 2000/(e)/
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 15.92 $ 20.49 $ 25.46 $ 28.41 $ 29.15
Income From Investment Operations:
Net Investment Income (Loss) 0.08 0.15 0.08 (0.00)/(d)/ 0.01
Net Realized and Unrealized Gains (Losses) on Investments 1.55 (4.49) (5.05) (2.63) (0.75)
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.63 (4.34) (4.97) (2.63) (0.74)
Less Distributions:
From Net Investment Income (0.11) (0.23) -- -- --
From Net Realized Gains -- -- -- (0.32) --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.11) (0.23) -- (0.32) --
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 17.44 $ 15.92 $ 20.49 $ 25.46 $ 28.41
==================================================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return +10.3% -21.2% -19.5% -9.2% -2.5%
Net Assets, End of Period (In Millions) $ 79 $ 67 $ 47 $ 31 $ 1
Ratio of Expenses to Average Net Assets before Expense Offsets 0.7%* 0.7% 0.6% 0.6%* 0.6%*
Ratio of Expenses to Average Net Assets 0.7%* 0.7% 0.6% 0.6%* 0.6%*
Ratio of Net Investment Income (Loss) to Average Net Assets 1.0%* 0.9% 0.6% 0.1%* 0.1%*
Portfolio Turnover Rate/(f)/ 109.2% 187.8% 171.9% 23.3% 122.0%
* 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, 2003 (unaudited).
(c) In 2000, the Fund changed its fiscal year-end from October to December.
(d) Amount calculated is less than $0.005 or 0.05%.
(e) For the period from March 2, 2000 (public launch rate) to October 31, 2000.
(f) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
See Notes to Financial Statements.
40
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG GROWTH AND INCOME FUND -- ADVISOR CLASS
- --------------------------------------------------------------------------------
Period Ended
---------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Oct. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(c)/ 2000/(d)/
- ----------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 15.77 $ 20.20 $ 25.32 $ 28.29 $ 29.15
Income From Investment Operations:
Net Investment Income (Loss) 0.03 0.04 (0.04) (0.00)/(e)/ (0.05)
Net Realized and Unrealized Gains (Losses)
on Investments 1.52 (4.41) (5.08) (2.65) (0.81)
- ----------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.55 (4.37) (5.12) (2.65) (0.86)
Less Distributions:
From Net Investment Income (0.02) (0.06) -- -- --
From Net Realized Gains -- -- -- (0.32) --
- ----------------------------------------------------------------------------------------------------------------------
Total Distributions (0.02) (0.06) -- (0.32) --
- ----------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 17.30 $ 15.77 $ 20.20 $ 25.32 $ 28.29
======================================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------
Total Return +9.9% -21.7% -20.2% -9.4% -3.0%
Net Assets, End of Period (In Millions) $ 9 $ 10 $ 14 $ 5 $ 0/(f)/
Ratio of Expenses to Average Net Assets before
Expense Offsets 1.4%* 1.3% 1.5% 1.3%* 1.3%*
Ratio of Expenses to Average Net Assets 1.3%* 1.3% 1.5% 1.3%* 1.3%*
Ratio of Net Investment Income (Loss) to Average
Net Assets 0.3%* 0.2% (0.3%) (0.2%)* (0.7%)*
Portfolio Turnover Rate/(g)/ 109.2% 187.8% 171.9% 23.3% 122.0%
STRONG GROWTH AND INCOME FUND -- CLASS K
- --------------------------------------------------------------------------------
Period Ended
---------------------
June 30, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002
- -----------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 15.75 $ 20.28
Income From Investment Operations:
Net Investment Income (Loss) 0.05 0.11
Net Realized and Unrealized Gains (Losses) on Investments 1.54 (4.46)
- -----------------------------------------------------------------------------------------
Total from Investment Operations 1.59 (4.35)
Less Distributions:
From Net Investment Income (0.08) (0.18)
- -----------------------------------------------------------------------------------------
Total Distributions (0.08) (0.18)
- -----------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 17.26 $ 15.75
=========================================================================================
Ratios and Supplemental Data
- -----------------------------------------------------------------------------------------
Total Return +10.1% -21.5%
Net Assets, End of Period (In Millions) $ 27 $ 19
Ratio of Expenses to Average Net Assets before Expense Offsets 1.1%* 1.1%
Ratio of Expenses to Average Net Assets 1.0%* 1.0%
Ratio of Net Investment Income (Loss) to Average Net Assets 0.7%* 0.7%
Portfolio Turnover Rate/(g)/ 109.2% 187.8%
* 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, 2003 (unaudited).
(c) In 2000, the Fund changed its fiscal year-end from October to December.
(d) For the period from March 2, 2000 (public launch rate) to October 31, 2000.
(e) Amount calculated is less than $0.005.
(f) Amount is less than $500,000.
(g) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
See Notes to Financial Statements.
41
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG OPPORTUNITY FUND -- INVESTOR CLASS
- --------------------------------------------------------------------------------
Period Ended
---------------------------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 28.70 $ 39.29 $ 42.35 $ 44.69 $ 38.62 $ 37.41
Income From Investment Operations:
Net Investment Income (Loss) (0.04) (0.08) 0.07 0.17 0.08 0.05
Net Realized and Unrealized Gains (Losses) on
Investments 4.68 (10.51) (2.11) 3.30 12.42 5.68
- ----------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 4.64 (10.59) (2.04) 3.47 12.50 5.73
Less Distributions:
From Net Investment Income -- -- (0.07) (0.17) (0.08) (0.05)
From Net Realized Gains -- -- (0.95) (5.64) (6.35) (4.47)
- ----------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (1.02) (5.81) (6.43) (4.52)
- ----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 33.34 $ 28.70 $ 39.29 $ 42.35 $ 44.69 $ 38.62
============================================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------
Total Return +16.2% -27.0% -4.8% +8.6% +33.4% +15.5%
Net Assets, End of Period (In Millions) $ 2,740 $ 2,507 $ 3,664 $ 3,337 $ 2,537 $ 2,038
Ratio of Expenses to Average Net Assets before
Expense Offsets 1.5%* 1.4% 1.3% 1.2% 1.2% 1.2%
Ratio of Expenses to Average Net Assets 1.5%* 1.4% 1.3% 1.2% 1.2% 1.2%
Ratio of Net Investment Income (Loss) to Average
Net Assets (0.3%)* (0.2%) 0.2% 0.5% 0.2% 0.2%
Portfolio Turnover Rate/(c)/ 26.4% 70.9% 87.8% 86.5% 80.8% 86.0%
STRONG OPPORTUNITY FUND -- ADVISOR CLASS
- --------------------------------------------------------------------------------
Period Ended
---------------------------------------------------
June 30, Dec. 31, Dec. 31, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002 2001 2000/(d)/
- ----------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 28.37 $ 38.92 $ 42.10 $ 43.16
Income From Investment Operations:
Net Investment Income (Loss) (0.05) (0.11) (0.06)/(d)/ 0.03
Net Realized and Unrealized Gains (Losses) on Investments 4.62 (10.44) (2.08) 4.83
- ----------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 4.57 (10.55) (2.14) 4.86
Less Distributions:
From Net Investment Income -- -- (0.09) (0.28)
From Net Realized Gains -- -- (0.95) (5.64)
- ----------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (1.04) (5.92)
- ----------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 32.94 $ 28.37 $ 38.92 $ 42.10
======================================================================================================================
Ratios and Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------
Total Return +16.1% -27.1% -5.1% +12.1%
Net Assets, End of Period (In Millions) $ 125 $ 104 $ 89 $ 3
Ratio of Expenses to Average Net Assets before Expense Offsets 1.6%* 1.6% 1.7% 1.6%*
Ratio of Expenses to Average Net Assets 1.6%* 1.6% 1.7% 1.6%*
Ratio of Net Investment Income (Loss) to Average Net Assets (0.4%)* (0.4%) (0.3%) 0.1%*
Portfolio Turnover Rate(c) 26.4% 70.9% 87.8% 86.5%
* 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, 2003 (unaudited).
(c) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
(d) For the period from February 28, 2000 (public launch rate) to December 31,
2000.
See Notes to Financial Statements.
42
FINANCIAL HIGHLIGHTS (continued)
- --------------------------------------------------------------------------------
STRONG OPPORTUNITY FUND -- CLASS K
- --------------------------------------------------------------------------------
Period Ended
-----------------------------
June 30, Dec. 31,
Selected Per-Share Data/(a)/ 2003/(b)/ 2002/(c)/
- ------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 28.73 $ 29.48
Income From Investment Operations:
Net Investment Income (Loss) (0.00)/(e)/ 0.02
Net Realized and Unrealized Gains (Losses) on Investments 4.69 (0.77)
- ------------------------------------------------------------------------------------------------
Total from Investment Operations 4.69 (0.75)
Less Distributions:
From Net Investment Income -- --
- ------------------------------------------------------------------------------------------------
Total Distributions -- --
- ------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 33.42 $ 28.73
================================================================================================
Ratios and Supplemental Data
- ------------------------------------------------------------------------------------------------
Total Return +16.3% -2.5%
Net Assets, End of Period (In Millions) $ 1 $ 1
Ratio of Expenses to Average Net Assets before Expense Offsets 1.5%* 1.2%*
Ratio of Expenses to Average Net Assets 1.2%* 1.2%*
Ratio of Net Investment Income (Loss) to Average Net Assets (0.0%)*/(e)/ 0.2%*
Portfolio Turnover Rate/(d)/ 26.4% 70.9%
* 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, 2003 (unaudited).
(c) For the period from August 30, 2002 (commencement of class) to December 31,
2002.
(d) Calculated on the basis of the Fund as a whole without distinguishing
between the classes of shares issued.
(e) Amount calculated is less than $0.005 or 0.05%.
See Notes to Financial Statements.
43
DIRECTORS AND OFFICERS
- --------------------------------------------------------------------------------
Richard S. Strong (indicated below by an asterisk*) is deemed an "interested
person" of the Fund as defined in the Investment Company Act of 1940 because of
his controlling ownership in the Advisor's parent company, Strong Financial
Corporation. Each officer and director holds the same position with the 27
registered open-end management investment companies consisting of 71 mutual
funds ("Strong Funds").
* Richard S. Strong (DOB 5-12-42), Director of the Strong Funds since
September 1981 and Chairman of the Board of the Strong Funds since October
1991.
Mr. Strong has been a Director of the Advisor since September 1981;
Chairman of the Advisor since October 1991; Chief Investment Officer of the
Advisor since January 1996; Security Analyst and Portfolio Manager of the
Advisor since 1985; Chief Executive Officer of the Advisor from 1974 to 1985;
Chairman of Strong Financial Corporation (holding company) since May 2001;
Director and Chairman of Strong Service Corporation (an investment advisor)
since 1995; and Director and Chairman of Strong Investor Services, Inc. (a
transfer agent and administrator), since July 2001. Mr. Strong founded the
Advisor in 1974 and has been in the investment management business since 1967.
Willie D. Davis (DOB 7-24-34), Director of the Strong Funds since July 1994.
Mr. Davis has been President and Chief Executive Officer of All Pro
Broadcasting, Inc., since 1977; Director of Wisconsin Energy Corporation
(formerly WICOR, Inc.) (a utility company), since 1990, Metro Goldwyn Mayer,
Inc. (an entertainment company), since 1998, Bassett Furniture Industries, Inc.,
since 1997, Checker's Drive-In Restaurants, Inc. (formerly Rally's Hamburgers,
Inc.), since 1994, Johnson Controls, Inc. (an industrial company), since 1992,
MGM Mirage (formerly MGM Grand, Inc.) (an entertainment/hotel company) since
1990, Dow Chemical Company since 1988, Sara Lee Corporation (a food/consumer
products company) since 1983, Alliance Bank since 1980, Manpower, Inc. (a
worldwide provider of staffing services), since 2001, and Kmart Corporation (a
discount consumer products company) from 1985 to 2003; and Trustee of the
University of Chicago since 1980 and Marquette University since 1988.
Gordon B. Greer (DOB 2-17-32), Director of the Strong Funds since March 2002.
Mr. Greer was Of Counsel for Bingham McCutchen LLP (a law firm previously
known as Bingham Dana LLP) from 1997 to February 2002 and Partner of Bingham
McCutchen LLP from 1967 to 1997. On behalf of Bingham McCutchen LLP, Mr. Greer
provided representation to the disinterested directors of the Strong Funds from
1991 to February 2002. Bingham McCutchen LLP has provided representation to the
Independent Directors of the Strong Funds since 1991.
Stanley Kritzik (DOB 1-9-30), Director of the Strong Funds since January 1995
and Chairman of the Audit Committee of the Strong Funds since July 2000.
Mr. Kritzik has been Partner of Metropolitan Associates (a real estate
firm) since 1962; Director of Wisconsin Health Information Network since
November 1997, Health Network Ventures, Inc., from 1992 to April 2000, Aurora
Health Care from September 1987 to September 2002; and Member of the Board of
Governors of Snowmass Village Resort Association from October 1999 until October
2002.
Neal Malicky (DOB 9-14-34), Director of the Strong Funds since December 1999.
Mr. Malicky has been President Emeritus of Baldwin-Wallace College since
July 2000; Chancellor of Baldwin-Wallace College from July 1999 to June 2000;
President of Baldwin-Wallace College from July 1981 to June 1999; Director of
Aspire Learning Corporation since June 2000; Trustee of Southwest Community
Health Systems, Cleveland Scholarship Program, and The National Conference for
Community and Justice until 2001; President of the National Association of
Schools and Colleges of the United Methodist Church, Chairperson of the
Association of Independent Colleges and Universities of Ohio, and Secretary of
the National Association of Independent Colleges and Universities until 2001.
William F. Vogt (DOB 7-19-47), Director and Chairman of the Independent
Directors Committee of the Strong Funds since January 1995.
Mr. Vogt has been Senior Vice President of IDX Systems Corporation (a
management consulting firm) since June 2001; President of Vogt Management
Consulting, Inc., from July 1990 to June 2001; and former Fellow of the American
College of Medical Practice Executives.
44
DIRECTORS AND OFFICERS (continued)
- --------------------------------------------------------------------------------
Ane K. Ohm (DOB 10-16-69), Anti-Money Laundering Compliance Officer since
November 2002.
Ms. Ohm has been Director of Mutual Fund Administration of Strong Investor
Services, Inc., since April 2001; Marketing Services Manager of Strong
Investments, Inc., from November 1998 to April 2001; and Retail Services
Financial Manager of Strong Investments, Inc., from January 1997 to November
1998.
Christopher O. Petersen (DOB 1-18-70), Vice President and Assistant Secretary of
the Strong Funds since May 2003.
Mr. Petersen has been Managing Counsel of Strong Financial Corporation
since March 2003; Corporate Counsel at U.S. Bancorp Asset Management, Inc., from
May 2001 to March 2003; Corporate Counsel at First American Asset Management, a
division of U.S. Bank National Association ("FAAM"), from September 1999 to May
2001; Compliance Officer at FAAM from January 1999 to September 1999; and
Associate at Mauzy Law Firm from September 1997 to December 1998.
Richard W. Smirl (DOB 4-18-67), Vice President of the Strong Funds since
February 2002 and Secretary of the Strong Funds since November 2001.
Mr. Smirl has been Senior Counsel of Strong Financial Corporation since
December 2001; Assistant Executive Vice President since December 2001; Secretary
of the Advisor since November 2002; Assistant Secretary of the Advisor from
December 2001 to November 2002; Senior Counsel of the Advisor from July 2000 to
December 2001; General Counsel of Strong Investments, Inc. ("Distributor"),
since November 2001; Vice President, Secretary, and Chief Compliance Officer of
the Distributor since July 2000; Lead Counsel of the Distributor from July 2000
to November 2001; Partner at Keesal, Young & Logan LLP (a law firm) from
September 1999 to July 2000; and Associate at Keesal, Young & Logan LLP from
September 1992 to September 1999.
Gilbert L. Southwell III (DOB 4-13-54), Assistant Secretary of the Strong Funds
since July 2001.
Mr. Southwell has been Associate Counsel of Strong Financial Corporation
since December 2001; Assistant Secretary of the Advisor since December 2002;
Associate Counsel of the Advisor from April 2001 to December 2001; Partner at
Michael, Best & Friedrich, LLP (a law firm) from October 1999 to March 2001; and
Assistant General Counsel of U.S. Bank, National Association (formerly Firstar
Bank, N.A.) and/or certain of its subsidiaries from November 1984 to September
1999.
John W. Widmer (DOB 1-19-65), Treasurer of the Strong Funds since April 1999.
Mr. Widmer has been Treasurer of the Advisor since April 1999; Assistant
Secretary and Assistant Treasurer of Strong Financial Corporation since December
2001; Treasurer of Strong Service Corporation since April 1999; Treasurer and
Assistant Secretary of Strong Investor Services, Inc., since July 2001; and
Manager of the Financial Management and Sales Reporting Systems department of
the Advisor from May 1997 to April 1999.
Thomas M. Zoeller (DOB 2-21-64), Vice President of the Strong Funds since
October 1999.
Mr. Zoeller has been Executive Vice President of the Advisor since April
2001; Chief Financial Officer of the Advisor since February 1998; Secretary of
the Advisor from December 2001 to November 2002; Member of the Office of the
Chief Executive of Strong Financial Corporation since May 2001; Chief Financial
Officer and Treasurer of Strong Investments, Inc., since October 1993; Executive
Vice President and Secretary of Strong Investor Services, Inc., since July 2001;
Executive Vice President, Chief Financial Officer, and Secretary of Strong
Service Corporation since December 2001; Treasurer of Strong Service Corporation
from September 1996 to April 1999; Vice President of Strong Service Corporation
from April 1999 to December 2001; Member of the Office of the Chief Executive of
the Advisor from November 1998 until May 2001; Senior Vice President of the
Advisor from February 1998 to April 2001; and Treasurer and Controller of the
Advisor from October 1991 to February 1998.
Except for Messrs. Davis, Kritzik, Malicky, and Vogt, the address of all of
the Directors and Officers is P.O. Box 2936, Milwaukee, WI 53201. Mr. Davis's
address is 161 North La Brea, Inglewood, CA 90301. Mr. Kritzik's address is 1123
North Astor Street, Milwaukee, WI 53202. Mr. Malicky's address is 4608 Turnberry
Drive, Lawrence, KS 66047. Mr. Vogt's address is P.O. Box 7657, Avon, CO 81620.
The statement of additional information contains additional information
about fund directors and officers and is available without charge, upon request,
by calling 1-800-368-3863.
45
NOTES
- --------------------------------------------------------------------------------
Directors
Richard S. Strong
Willie D. Davis
Gordon B. Greer
Stanley Kritzik
Neal Malicky
William F. Vogt
Officers
Richard S. Strong, Chairman of the Board
Thomas M. Zoeller, Vice President
Richard W. Smirl, Vice President and Secretary
Christopher O. Petersen, Vice President and Assistant Secretary
Gilbert L. Southwell III, Assistant Secretary
John W. Widmer, Treasurer
Ane K. Ohm, Anti-Money Laundering Compliance Officer
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
State Street Bank and Trust Company
801 Pennsylvania Avenue, Kansas City, Missouri 64105
Transfer Agent and Dividend-Disbursing Agent
Strong Investor Services, 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
This report does not constitute an offer for the sale of securities. Strong
Funds are offered for sale by prospectus only. Securities are offered through
Strong Investments, Inc. RT35732 08-03
Strong Investments
P.O. Box 2936 | Milwaukee, WI 53201
www.Strong.com
- --------------------------------------------------------------------------------
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.Strong.com
[STRONG LOGO]
SCOR/WH2056 06-03
Item 2. Code of Ethics
Not applicable for filing of Semiannual Reports to Shareholders.
Item 3. Audit Committee Financial Expert
Not applicable for filing of Semiannual Reports to Shareholders.
Item 4. Principal Accountant Fees and Services
Not applicable for filing of Semiannual Reports to Shareholders.
Item 5 - 6. [Reserved]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a
closed-end management investment company.
Item 8. [Reserved]
Item 9. Controls and Procedures
(a) An evaluation was performed within 90 days from the date hereof
under the supervision of the Registrant's management, including the
principal executive officer and treasurer, regarding the effectiveness
of the registrant's disclosure controls and procedures. Based on that
evaluation, it was determined that such disclosure controls and
procedures provide reasonable assurance that the material information
required to be disclosed by the Registrant in the reports it files or
submits on Form N-CSR (1) is accumulated and communicated to the
Registrant's management, including its principal executive officer and
treasurer, to allow timely decisions regarding required disclosure, and
(2) is recorded, processed, summarized, and reported within the time
periods specified in the Commission's rules and forms.
(b) There were no significant changes in the Registrant's internal
controls or in other factors that could significantly affect these
controls subsequent to the date of the evaluation referenced in (a)
above, including any corrective actions with regard to significant
deficiencies and material weaknesses.
Item 10. Exhibits
The following exhibits are attached to this Form N-CSR:
10(b)(1) Certification of Principal Executive Officer Required by
Section 302 of the Sarbanes-Oxley Act of 2002
10(b)(2) Certification of Principal Financial Officer Required by
Section 302 of the Sarbanes-Oxley Act of 2002
10(c) Certification of Chief Executive Officer and Chief
Financial Officer Required by Section 906 of the
Sarbanes-Oxley Act of 2002
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the Registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
Strong Opportunity Fund, Inc.; on behalf of Strong Advisor Select Fund, Strong
Advisor U.S. Small/Mid Cap Growth Fund, Strong Endeavor Fund and Strong
Opportunity Fund.
By: /s/ Richard W. Smirl
-------------------------------------
Richard W. Smirl, Vice President and Secretary
Date: August 22, 2003
---------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Richard S. Strong
-------------------------------------
Richard S. Strong, Principal Executive Officer
Date: August 22, 2003
---------------
By: /s/ John W. Widmer
-------------------------------------
John W. Widmer, Treasurer (Principal Financial Officer)
Date: August 22, 2003
---------------