<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders...................... 1
Performance Results......................... 3
Portfolio Management Review................. 4
Portfolio of Investments.................... 6
Statement of Assets and Liabilities......... 11
Statement of Operations..................... 12
Statement of Changes in Net Assets.......... 13
Financial Highlights........................ 14
Notes to Financial Statements............... 17
</TABLE>
ENT SAR 8/95
<PAGE>
LETTER TO SHAREHOLDERS
[PHOTO FO DENNIS J. MCDONNELL AND DON G. POWELL]
August 3, 1995
Dear Shareholder:
The first half of 1995 has been a very positive one for most investors. Both
the fixed-income and stock markets have made considerable gains for the period
ended June 30, 1995. This year has been particularly rewarding for investors
after weathering the difficult markets of 1994.
The first six months of 1995 serve as a reminder of just how quickly markets
can move, and how difficult it can be to predict the timing of those movements.
Moreover, this year reinforces the importance of maintaining a long-term per-
spective, and reaffirms the principle that it is time--not timing--that leads
to investment success.
ECONOMIC OVERVIEW
Due in large part to the Federal Reserve Board's efforts to tighten monetary
supply in 1994, the economy has slowed significantly this year. Evidence of
this guided slowdown was reflected in gross domestic product for the second
quarter, which grew at an annual rate of 0.5 percent, substantially lower than
its first quarter rate of 2.7 percent and fourth quarter 1994 rate of 5.1 per-
cent. While other key economic data, including unemployment rates and housing
starts, have shown mixed signs during recent weeks, the general trend for the
first half of the year suggested a "soft landing" scenario. Subsequently, con-
cern over inflation has subsided, as its annualized rate has run at a modest
pace of 3.2 percent year-to-date.
Financial markets, perceiving the Fed's monetary initiatives had taken hold
without driving the economy into a recession, rallied through the first six
months of the year. With slowing growth, interest rates declined and the value
of fixed-income investments rose. For example, the yield on 30-year Treasury
securities fell from 7.88 percent at the end of December to 6.62 percent at the
end of June, while prices on the "long bond" rose 18 percent. Likewise, the
yield on the Bond Buyer's Municipal Bond Index fell from 7.28 percent to 6.37
percent during the same period.
Corporate earnings remained quite strong during the first half of the year,
helping push stocks to new highs. The Dow Jones Industrial Average and the S&P
500 Index gained nearly 19 percent during the period. The strongest performance
has been in the science & technology sector of the market--and in big "capital-
ization" stocks. As the U.S. dollar plunged against several international cur-
rencies, companies--typically large ones--which had diversified overseas were
able to capture additional earnings, while technology stocks benefited from
booming growth in computers and telecommunications throughout the world.
(Continued on page two)
1
<PAGE>
ECONOMIC OUTLOOK
Comfortable with the economy's rate of growth and level of inflation, the
Fed reversed course and lowered short-term interest rates on July 6. We be-
lieve the Fed will move cautiously before easing again, waiting for further
signs that the economy has settled into a slow growth pattern. We anticipate
that the economy will grow at an annual rate between 2 and 3 percent in the
second half of the year and that inflation will run at an annualized rate be-
tween 3.3 and 3.5 percent. Based upon a generally slow growth and low infla-
tion outlook, we believe fixed-income markets will continue to make positive
gains as interest rates fall. We look for stocks to perform well, but perhaps
not as strongly as in the first half of the year, as some companies may find
it difficult to maintain their strong earnings momentum.
During recent months, debate over tax reform has dominated the agenda in
Washington. There has been varied speculation about the impact of reform,
which may have caused you to wonder how it might affect your investment goals.
At this point, no one knows for sure what will happen or when it might actu-
ally take place. As various proposals come to the forefront, there may be
short-term market fluctuations, just as we saw during the debate over the U.S.
health care system. We will continue to keep a close watch over any new devel-
opments and evaluate the potential impact that they may have on your invest-
ments.
Once again, it is important to remember that financial markets will inevita-
bly experience highs and lows, but by maintaining a long-term investment per-
spective, it may allow you to ride the ups and downs of the markets more
easily as you pursue your investment goals.
On the following pages, you can read about your Fund's performance for the
period, as well as portfolio management's outlook for the Fund in the coming
months. We hope that you will find the information contained in the question-
and-answer section helpful.
CORPORATE NEWS
Along with your Fund's shareholder report, we are pleased to introduce a new
shareholder publication called Your Portfolio. The purpose of this publication
is to provide you with additional information about your mutual fund invest-
ment, as well as offer helpful insights regarding long-term investment strate-
gies and trends in the marketplace. The publication will be mailed twice a
year with your June and December shareholder reports. This premier issue fo-
cuses on our various shareholder services and privileges designed to make mu-
tual fund investing easier for you.
We appreciate your continued confidence in your investment with Van Kampen
American Capital, and we look forward to communicating with you again regard-
ing the performance of your Fund.
Sincerely,
/s/ Don G. Powell /s/ Dennis J. McDonnell
- --------------------------- ---------------------------
Dennis J. McDonnell
Don G. Powell President
Chairman Van Kampen American Capital
Van Kampen American Capital Asset Management Inc.
Asset Management Inc.
2
<PAGE>
PERFORMANCE RESULTS FOR THE PERIOD ENDED JUNE 30, 1995
AMERICAN CAPITAL ENTERPRISE FUND, INC.
<TABLE>
<CAPTION>
A SHARES B SHARES C SHARES
TOTAL RETURNS
<S> <C> <C> <C>
Six-month total return based on NAV/1/............... 20.85% 20.43% 20.51%
Six-month total return/2/............................ 13.87% 15.43% 19.51%
One-year total return/2/............................. 20.06% 21.35% 25.41%
Five-year average annual total return/2/............. 11.77% N/A N/A
Ten-year average annual total return/2/.............. 12.65% N/A N/A
Life-of-Fund average annual total return/2/.......... 12.72% 12.78% 12.85%
Commencement Date.................................... 01/07/54 12/20/91 07/20/93
</TABLE>
N/A = Not Applicable
/1/Assumes reinvestment of all distributions for the period and does not in-
clude payment of the maximum sales charge (5.75% for A shares) or contingent
deferred sales charge for early withdrawal (5% for B shares and 1% for C
shares).
/2/Standardized total return. Assumes reinvestment of all distributions for
the period and includes payment of the maximum sales charge (5.75% for A
shares) or contingent deferred sales charge for early withdrawal (5% for B
shares and 1% for C shares).
See the Prior Performance section of the current prospectus. Past performance
does not guarantee future results. Investment return and net asset value will
fluctuate with market conditions. Fund shares, when redeemed, may be worth
more or less than their original cost.
3
<PAGE>
PORTFOLIO MANAGEMENT REVIEW
AMERICAN CAPITAL ENTERPRISE FUND, INC.
The following is an interview with the management team of American Capital
Enterprise Fund. The team is led by Jeff D. New, portfolio manager, and Alan
T. Sachtleben, executive vice president, equity investments.
Q. WHAT FACTORS HAD THE MOST IMPACT ON THE FUND'S PERFORMANCE DURING THE
FIRST HALF OF 1995?
A. During the first six months of this year interest rates fell after rising
during the previous six-month period. Meanwhile, corporate earnings, es-
pecially in the industrial sectors, continued to be strong. Falling rates and
rising earnings typically create an ideal environment for stocks, the trends
generated renewed enthusiasm among investors. Stock prices rallied, in a
broad-based recovery that was led by the technology sector. In addition to our
technology holdings, the Fund also benefited from its "bottom-up" stock-pick-
ing philosophy, which resulted in our owning stocks of companies that contin-
ued to deliver strong earnings performance.
Q. WHAT INDUSTRIES PERFORMED WELL DURING THE PAST YEAR?
A. The technology sector continued to lead the market. Whether we look at
the performance for a three-month, six-month or one-year period, technol-
ogy stocks continue to generate strong returns. As a broadly diversified Fund,
we limit the percentage of our assets invested in any one sector, but we still
have more assets invested in technology than in any other sector. The chart
below shows the diversification of the portfolio as of June 30, 1995.
A. Within the technology sector, we focus on the stocks of companies in the
semiconductor industry. At the end of June, about half of the portfolio's
technology holdings were in semiconductor companies. Some of the technology
stocks owned by the Fund during the reporting period that performed especially
well included BMC Software, Intel--now the Fund's largest holding, and Applied
Materials.
Another sector in which we are heavily invested is finance, and stocks that
did well there included Midlantic Corp. and Baybanks, both of which have
strong fundamentals. In the raw materials sector, we focused on paper compa-
nies like Bowater, which are benefiting from steadily increasing prices driven
by strong demand and little increase in supply.
[PIE CHART PORTFOLIO HOLDINGS BY INDUSTRY AS OF JUNE 30, 1995 APPEARS HERE]
Healthcare 12%
Utilities 4%
Finance 12%
Consumer Services 9%
Consumer Distribution 6%
Consumer Non-Durables 7%
Technology 26%
Producer Manufacturing 7%
Raw Materials/Processing Industries 6%
Energy 5%
Other 6%
4
<PAGE>
Q. IN TERMS OF INDUSTRIES, WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO TO
BENEFIT FROM THE CHANGING INTEREST-RATE ENVIRONMENT?
A. We reduced the percentage of our holdings of energy stocks, while in-
creasing our holdings of technology and financial services stocks. Compa-
nies in the financial sector usually benefit from a lower interest-rate
environment.
Q. HOW DID THE FUND PERFORM DURING THE SIX MONTHS ENDED JUNE 30, 1995?
A. Class A shares of the Fund achieved a total return at net asset value of
20.85 percent,/1/ and a capital gains distribution of $0.11 per share. By
comparison, the Standard & Poor's 500-Stock Index, a broad-based, unmanaged
index that reflects general stock market performance, achieved a total return
of 20.15 percent. The S&P 500 does not reflect any commissions or fees that
would be paid by an investor purchasing the securities it represents. (Please
refer to the chart on page three for additional Fund performance.)
Q. WHAT'S THE OUTLOOK FOR THE FUND IN THE NEXT SIX MONTHS?
A. The performance of the stock market during the remainder of the year will
depend, in large part, on what action the Fed takes with regard to short-
term interest rates. The stock market also will be dependent on the degree to
which the slowdown in economic activity that seems to be under way impacts
corporate earnings. The recent cut in rates should increase economic growth
and cause the stock market to continue to perform well. However, if economic
growth accelerates rapidly to the point of causing inflation, then stocks
would not perform as well.
Since our investment style is to normally remain fully invested and broadly
diversified, we will continue to focus on stock selection and pick stocks that
should do well regardless of changes in interest and economic growth rates. We
believe the technology sector, particularly semiconductors, will continue to
perform well as innovations continue at a rapid pace. However, if valuations
in the technology industries become excessive compared to the fundamental out-
look for technology companies, we will reduce our overall weighting in the
sector. In addition, we are likely to increase the portfolio's holdings of
stocks in the more economically sensitive sectors if corporate earnings hold
up relatively well in the current slowdown. Specific industries in which we
might increase the Fund's investments would include chemicals, metals, machin-
ery and homebuilding.
/s/ Alan T. Sachtleben /s/ Jeff D. New
- ------------------------ ------------------------
Alan T. Sachtleben Jeff D. New
Executive Vice President Portfolio Manager
Equity Investments
Please see footnotes on page three.
5
<PAGE>
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
(000) Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCK 94.6%
CONSUMER DISTRIBUTION 6.2%
260 Dollar General Corp.................................. $ 8,222,500
*270 Eckerd Corp.......................................... 8,640,000
*180 Kroger Co............................................ 4,837,500
220 Limited, Inc......................................... 4,840,000
*135 Nine West Group, Inc................................. 4,927,500
*210 Safeway, Inc......................................... 7,848,750
75 Sears, Roebuck & Co.................................. 4,490,625
95 Talbots, Inc......................................... 3,776,250
640 Wal-Mart Stores, Inc................................. 17,120,000
50 Walgreens Co......................................... 2,506,250
--------------
TOTAL CONSUMER DISTRIBUTION.......................... 67,209,375
--------------
CONSUMER NON-DURABLES 6.5%
60 Clorox Co............................................ 3,915,000
115 Colgate Palmolive Co................................. 8,409,375
150 ConAgra, Inc......................................... 5,231,250
50 CPC International, Inc............................... 3,087,500
112 Nabisco Holdings Corp, Class A....................... 3,024,000
245 PepsiCo, Inc......................................... 11,178,125
255 Philip Morris Companies, Inc......................... 18,965,625
120 Procter & Gamble Co.................................. 8,625,000
105 Sara Lee Corp........................................ 2,992,500
255 Whitman Corp......................................... 4,940,625
--------------
TOTAL CONSUMER NON-DURABLES.......................... 70,369,000
--------------
CONSUMER SERVICES 9.2%
*19 American Radio Systems Corp.......................... 432,250
30 Capital Cities ABC, Inc.............................. 3,240,000
*59 Citicasters, Inc..................................... 1,622,500
*245 Cox Communications, Inc.............................. 4,746,875
180 Disney (Walt) Co..................................... 10,012,500
*79 Emmis Broadcasting Corp., Class A.................... 2,136,400
*140 Evergreen Media Corp., Class A....................... 3,640,000
200 Marriott International, Inc.......................... 7,175,000
160 McDonald's Corp...................................... 6,260,000
*265 Mirage Resorts, Inc.................................. 8,115,625
230 News Corp Limited, ADR............................... 5,203,750
135 Omnicom Group........................................ 8,184,375
500 Service Corp. International.......................... 15,812,500
*320 Tele-Communications, Class A......................... 7,500,000
</TABLE>
See Notes to Financial Statements
6
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
(000) Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
100 Time Warner, Inc.................................... $ 4,112,500
*287 Trump Hotels & Casino Resorts....................... 3,838,625
*150 Viacom, Inc., Class B .............................. 6,956,250
--------------
TOTAL CONSUMER SERVICES........................... 98,989,150
--------------
ENERGY 4.5%
240 Baker Hughes, Inc................................... 4,920,000
45 British Petroleum Co., PLC, ADR..................... 3,853,125
100 Exxon Corp.......................................... 7,062,500
50 Mobil Corp.......................................... 4,800,000
400 Panhandle Eastern Corp.............................. 9,750,000
30 Royal Dutch Petroleum, ADR.......................... 3,656,250
75 Schlumberger, Ltd................................... 4,659,375
*305 Smith International, Inc............................ 5,108,750
260 USX-Marathon Group.................................. 5,135,000
--------------
TOTAL ENERGY...................................... 48,945,000
--------------
FINANCE 12.3%
230 American General Corp............................... 7,762,500
100 American International Group, Inc................... 11,400,000
230 Bank of Boston Corp................................. 8,625,000
85 Bank of New York, Inc............................... 3,431,875
150 BankAmerica Corp.................................... 7,893,750
86 Baybanks, Inc....................................... 6,839,275
230 Bear Stearns Companies, Inc......................... 4,916,250
205 Chemical Banking Corp............................... 9,686,250
205 Citicorp............................................ 11,864,375
200 Federal Home Loan Mortgage Corp..................... 13,750,000
125 Federal National Mortgage Association............... 11,796,875
75 First Chicago Corp.................................. 4,490,625
165 Green Tree Financial Corp........................... 7,321,875
110 Midlantic Corp...................................... 4,400,000
120 Providian Corp...................................... 4,350,000
140 Reliastar Financial Corp............................ 5,355,000
245 TIG Holdings, Inc................................... 5,635,000
15 Wells Fargo & Co.................................... 2,703,750
--------------
TOTAL FINANCE..................................... 132,222,400
--------------
HEALTH CARE 12.3%
100 Abbott Laboratories, Inc. .......................... 4,050,000
95 American Home Products Corp......................... 7,350,625
*115 Amgen, Inc.......................................... 9,250,313
140 Baxter International, Inc........................... 5,092,500
150 Columbia/HCA Healthcare Corp........................ 6,487,500
*325 Community Health Systems, Inc....................... 11,009,375
</TABLE>
See Notes to Financial Statements
7
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
(000) Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
*35 Cordis Corp......................................... $ 2,336,250
*70 Elan PLC, ADR....................................... 2,852,500
*83 Genentech, Inc...................................... 4,035,875
*120 Health Management Association, Inc., Class A........ 3,510,000
*115 Healthcare Compare Corp............................. 3,450,000
*110 Healthcare & Retirement Corp........................ 3,217,500
124 Integrated Health Services, Inc..................... 3,720,000
120 Johnson & Johnson................................... 8,115,000
*260 Lincare Holdings, Inc............................... 6,906,250
80 Medtronic, Inc...................................... 6,170,000
230 Merck & Co, Inc..................................... 11,270,000
280 Mylan Labs, Inc..................................... 8,610,000
250 Schering Plough Corp................................ 11,031,250
90 Smithkline Beecham, ADR............................. 4,072,500
*270 Sun Healthcare Group................................ 4,252,500
*140 Watsons Pharmaceuticals, Inc........................ 5,460,000
--------------
TOTAL HEALTH CARE................................. 132,249,938
--------------
PRODUCER MANUFACTURING 6.6%
60 Allied Signal, Inc.................................. 2,670,000
190 Browning-Ferris Industries, Inc..................... 6,863,750
*110 Fusion Systems Corp................................. 3,767,500
120 General Electric Co................................. 6,765,000
130 Greenfield Industries, Inc.......................... 3,770,000
100 Illinois Tool Works, Inc............................ 5,500,000
175 Kennametal, Inc..................................... 6,168,750
410 Philip N.V., ADR.................................... 17,527,500
*235 United Waste Systems, Inc........................... 8,460,000
*100 Varity Corp......................................... 4,400,000
190 WMX Technologies, Inc............................... 5,391,250
--------------
TOTAL PRODUCER MANUFACTURING...................... 71,283,750
--------------
RAW MATERIALS/PROCESSING INDUSTRIES 6.1%
155 Bemis, Inc.......................................... 4,030,000
160 Bowater, Inc........................................ 7,180,000
110 Champion International Corp......................... 5,733,750
86 Du Pont (E.I.) de Nemours & Co., Inc................ 5,912,500
85 Grace (W. R.) & Co.................................. 5,216,875
75 Hercules, Inc....................................... 3,656,250
126 International Paper Co.............................. 10,804,500
220 James River Corp.................................... 6,077,500
269 Praxair, Inc........................................ 6,725,000
130 Scott Paper Co...................................... 6,435,000
80 Sigma Aldrich Corp.................................. 3,930,000
--------------
TOTAL RAW MATERIALS/PROCESSING INDUSTRIES......... 65,701,375
--------------
</TABLE>
See Notes to Financial Statements
8
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
(000) Description Market Value
- --------------------------------------------------------------------------------
<C> <S> <C>
TECHNOLOGY 26.2%
*135 Applied Materials, Inc............................. $ 11,694,375
*75 Atmel Corp......................................... 4,153,125
*175 BMC Software, Inc.................................. 13,518,750
*435 Chips & Technologies, Inc.......................... 5,709,375
*180 Cisco Systems, Inc................................. 9,101,250
*185 Compaq Computer Corp............................... 8,394,375
*190 Cypress Semiconductor Corp......................... 7,695,000
*70 Dell Computer Corp................................. 4,208,750
10 Discreet Logic, Inc................................ 336,600
*130 DSC Communications Corp............................ 6,045,000
*325 FTP Software, Inc.................................. 9,750,000
*150 General Instrument Corp............................ 5,756,250
*160 Integrated Device Technology....................... 7,400,000
505 Intel Corp......................................... 31,972,813
120 International Business Machines Corp............... 11,520,000
*205 International Rectifier Corp....................... 6,662,500
*50 KLA Instruments Corp............................... 3,862,500
*135 Lam Resources Corp................................. 8,640,000
60 Linear Technology Corp............................. 3,960,000
73 Lockheed Martin Corp............................... 4,630,219
*240 LSI Logic Corp..................................... 9,390,000
*225 Megatest Corp...................................... 2,981,250
194 Micron Technology, Inc............................. 10,645,750
*45 Microsoft Corp..................................... 4,066,875
*315 National Semiconductor Corp........................ 8,741,250
126 Nokia Corp, ADR.................................... 7,530,638
*158 Oracle System Corp................................. 6,083,435
10 Paradigm Technology, Inc........................... 228,863
*120 Silicon Graphics, Inc.............................. 4,785,000
*65 Sun Microsystems, Inc.............................. 3,152,500
*300 Symantec Corp...................................... 8,662,500
*80 Tellabs, Inc....................................... 3,850,000
*125 Teradyne, Inc...................................... 8,171,875
105 Texas Instruments, Inc............................. 14,056,875
*95 3Com Corp.......................................... 6,365,000
*625 VLSI Technology, Inc............................... 18,828,125
---------------
TOTAL TECHNOLOGY................................. 282,550,818
---------------
TRANSPORTATION 1.1%
*90 AMR Corp........................................... 6,716,250
155 Illinois Central Corp.............................. 5,347,500
---------------
TOTAL TRANSPORTATION............................. 12,063,750
---------------
</TABLE>
See Notes to Financial Statements
9
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
June 30, 1995 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
(000) Description Market Value
- -------------------------------------------------------------------------------
<C> <S> <C>
UTILITIES 3.6%
*120 ALC Communications Corp........................... $ 5,415,000
*25 Cellular Communications, Inc, Class A............. 1,137,500
125 FPL Group, Inc.................................... 4,828,125
200 MCI Communications Corp........................... 4,400,000
145 NIPSCO Industries, Inc............................ 4,930,000
180 Pacificorp........................................ 3,375,000
150 Pinnacle West Capital Corp........................ 3,675,000
*410 Worldcom, Inc..................................... 11,070,000
--------------
TOTAL UTILITIES................................. 38,830,625
--------------
TOTAL COMMON STOCK (Cost $820,320,315).......... 1,020,415,181
--------------
PREFERRED STOCK 0.8%
*200 Cellular Communications, Inc. (Cost $6,587,298)... 9,100,000
--------------
Principal
Amount
(000)
- --------
SHORT-TERM INVESTMENTS 6.1%
$38,000 Associates Corp of North America, 6.15%, 7/03/95.. 37,980,525
5,000 Federal Home Loan Mortgage Corp, 5.66%, 12/01/95.. 4,881,500
22,695 Repurchase Agreement with Lehman Government
Securities, dated 6/30/95, 6.05%, due 7/03/95
collateralized by U.S. Government obligations in a
pooled cash account) repurchase proceeds
$22,706,442....................................... 22,695,000
--------------
TOTAL SHORT-TERM INVESTMENTS (Cost $65,560,025). 65,557,025
--------------
TOTAL INVESTMENTS (Cost $892,467,638) 101.5%................. 1,095,072,206
OTHER ASSETS AND LIABILITIES, NET (1.5%)..................... (15,974,495)
--------------
NET ASSETS 100%.............................................. $1,079,097,711
--------------
</TABLE>
*Non-income producing security
See Notes to Financial Statements
10
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments, at market value (Cost $892,467,638)................ $1,095,072,206
Cash............................................................ 25,855
Receivable for investments sold................................. 4,582,157
Receivable for Fund shares sold................................. 2,373,847
Dividends receivable............................................ 1,090,641
Other assets.................................................... 7,672
--------------
Total Assets................................................... 1,103,152,378
--------------
LIABILITIES
Payable for Fund shares redeemed................................ 15,271,941
Payable for investments purchased............................... 7,213,840
Due to Distributor.............................................. 595,180
Due to Adviser.................................................. 436,454
Due to shareholder service agent................................ 253,000
Deferred Directors' compensation................................ 86,640
Accrued expenses................................................ 197,612
--------------
Total Liabilities.............................................. 24,054,667
--------------
NET ASSETS, equivalent to $13.69 per share for Class A, $13.57
per share for Class B, and $13.64 per share for Class C shares. $1,079,097,711
--------------
NET ASSETS WERE COMPRISED OF:
Capital stock, at par; 67,713,272 Class A, 10,412,546 Class B
and 765,414 Class C shares outstanding......................... $ 78,891,232
Capital surplus................................................. 765,065,381
Undistributed net realized gain on securities................... 30,067,685
Net unrealized appreciation of securities....................... 202,604,568
Undistributed net investment income............................. 2,468,845
--------------
NET ASSETS...................................................... $1,079,097,711
--------------
</TABLE>
See Notes to Financial Statements
11
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends........................................................ $ 6,461,784
Interest......................................................... 1,640,889
------------
Investment income............................................... 8,102,673
------------
EXPENSES
Management fees.................................................. 2,388,138
Shareholder service agent's fees and expenses.................... 1,423,287
Accounting services.............................................. 71,847
Service fees--Class A............................................ 747,373
Distribution and service fees--Class B........................... 583,696
Distribution and service fees--Class C........................... 43,859
Directors' fees and expenses..................................... 15,596
Audit fees....................................................... 19,000
Custodian fees................................................... 8,217
Legal fees....................................................... 8,699
Reports to shareholders.......................................... 122,668
Registration and filing fees..................................... 107,288
Miscellaneous.................................................... 7,223
------------
Total expenses.................................................. 5,546,891
------------
NET INVESTMENT INCOME............................................ 2,555,782
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES
Net realized gain on securities
Investments..................................................... 30,243,533
Futures contracts............................................... 2,105,225
Net unrealized appreciation (depreciation) of securities during
the period
Investments..................................................... 150,010,651
Futures contracts............................................... (275,123)
------------
NET REALIZED AND UNREALIZED GAIN ON SECURITIES................... 182,084,286
------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................. $184,640,068
------------
</TABLE>
See Notes to Financial Statements
12
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year Ended
Ended June 30, December 31,
1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C>
NET ASSETS, beginning of period................ $ 850,794,416 $ 847,216,585
-------------- --------------
Operations
Net investment income......................... 2,555,782 5,294,220
Net realized gain on securities............... 32,348,758 56,353,022
Net unrealized appreciation (depreciation) of
securities during the period................. 149,735,528 (62,609,722)
-------------- --------------
Increase (decrease) in net assets resulting
from operations............................... 184,640,068 (962,480)
-------------- --------------
Distributions to shareholders from
Net investment income
Class A....................................... -- (5,421,487)
Class B....................................... -- --
Class C....................................... -- --
-------------- --------------
-- (5,421,487)
-------------- --------------
Net realized gain on securities
Class A....................................... (7,361,081) (42,823,112)
Class B....................................... (1,053,812) (5,142,630)
Class C....................................... (78,977) (417,302)
-------------- --------------
(8,493,870) (48,383,044)
-------------- --------------
Total distributions.......................... (8,493,870) (53,804,531)
-------------- --------------
Capital transactions
Proceeds from shares sold
Class A....................................... 558,958,498 1,071,449,681
Class B....................................... 45,494,558 87,294,376
Class C....................................... 4,395,049 22,435,417
-------------- --------------
608,848,105 1,181,179,474
-------------- --------------
Proceeds from shares issued for distributions
reinvested
Class A....................................... 6,575,554 42,222,983
Class B....................................... 992,888 4,813,913
Class C....................................... 67,178 371,079
-------------- --------------
7,635,620 47,407,975
-------------- --------------
Cost of shares redeemed
Class A....................................... (541,169,495) (1,094,738,045)
Class B....................................... (20,113,810) (58,634,738)
Class C....................................... (3,043,323) (16,869,824)
-------------- --------------
(564,326,628) (1,170,242,607)
-------------- --------------
Increase in net assets resulting from capital
transactions................................. 52,157,097 58,344,842
-------------- --------------
INCREASE IN NET ASSETS......................... 228,303,295 3,577,831
-------------- --------------
NET ASSETS, end of period...................... $1,079,097,711 $ 850,794,416
-------------- --------------
</TABLE>
See Notes to Financial Statements
13
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock outstanding throughout each of the
periods indicated (Unaudited).
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
----------------------------------------------------
Six Months Year Ended December 31
Ended June -----------------------------------------
30, 1995 1994 1993 1992 1991 1990
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE
Net asset value, begin-
ning of period.......... $11.43 $12.23 $ 12.64 $ 13.83 $ 10.76 $11.52
------ ------ ------- ------- ------- ------
Income from operations
Investment income....... .10 .21 .19 .27 .295 .35
Expenses................ (.06) (.13) (.13) (.135) (.125) (.11)
------ ------ ------- ------- ------- ------
Net investment income.... .04 .08 .06 .135 .17 .24
Net realized and
unrealized gains or
losses on securities.... 2.33 (.1225) 1.2525 .9325 3.9625 (.5475)
------ ------ ------- ------- ------- ------
Total from investment op-
erations................ 2.37 (.0425) 1.3125 1.0675 4.1325 (.3075)
------ ------ ------- ------- ------- ------
Less distributions from
Net investment income... -- (.085) (.0575) (.145) (.1725) (.23)
Net realized gains on
securities............. (.11) (.6725) (1.665) (2.1125) (.89) (.2225)
------ ------ ------- ------- ------- ------
Total distributions...... (.11) (.7575) (1.7225) (2.2575) (1.0625) (.4525)
------ ------ ------- ------- ------- ------
Net asset value, end of
period.................. $13.69 $11.43 $ 12.23 $ 12.64 $ 13.83 $10.76
------ ------ ------- ------- ------- ------
TOTAL RETURN(/1/)........ 20.85% (.18%) 10.96% 8.39% 39.23% (2.87%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(millions).............. $927.3 $749.7 $ 778.9 $ 736.4 $ 713.1 $542.4
Average net assets
(millions).............. $830.6 $758.4 $ 759.0 $ 683.8 $ 625.8 $557.7
Ratios to average net
assets (annualized)
Expenses................ 1.04% 1.05% .99% .99% .97% .94%
Net investment income... .66% .71% .48% 1.00% 1.33% 2.13%
Portfolio turnover rate.. 54% 176% 196% 161% 103% 105%
</TABLE>
(1) Total return for a period of less than one full year is not annualized.
Total return does not consider the effect of sales charges.
See Notes to Financial Statements
14
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
Selected data for a share of capital stock outstanding throughout each of the
periods indicated (Unaudited).
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B(/1/)
------------------------------------
Six Months
Ended June Year Ended December 31
30, -------------------------
1995(/2/) 1994 1993 1992(/2/)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period...... $11.37 $12.19 $12.66 $ 13.82
------ ------ ------ -------
Income from operations
Investment income........................ .10 .04 .16 .26
Expenses................................. (.11) (.04) (.20) (.245)
------ ------ ------ -------
Net investment income (loss).............. (.01) 00 (.04) .015
Net realized and unrealized gains or
losses on securities..................... 2.32 (.1475) 1.24 .9675
------ ------ ------ -------
Total from investment operations.......... 2.31 (.1475) 1.20 .9825
------ ------ ------ -------
Less distributions from
Net investment income.................... -- -- (.005) (.03)
Net realized gains on securities......... (.11) (.6725) (1.665) (2.1125)
------ ------ ------ -------
Total distributions....................... (.11) (.6725) (1.67) (2.1425)
------ ------ ------ -------
Net asset value, end of period............ $13.57 $11.37 $12.19 $12.66
------ ------ ------ -------
TOTAL RETURN(/3/)......................... 20.43% (1.07%) 10.00% 7.67%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (millions)...... $141.3 $93.7 $66.2 $21.5
Average net assets (millions)............. $116.7 $81.3 $43.6 $8.3
Ratios to average net assets (annualized)
Expenses................................. 1.87% 1.89% 1.81% 1.90%
Net investment income (loss)............. (.18%) (.11%) (.37%) .12%
Portfolio turnover rate................... 54% 176% 196% 161%
</TABLE>
(1) Sales of Class B commenced December 20, 1991 at a net asset value of $12.55
per share. At December 31, 1991, there were 763 Class B shares outstanding
with a per share net asset value of $13.82. The increase in net asset value
was due principally to unrealized appreciation. There were no dividends or
distributions to shareholders during the period. Other financial highlights
for the Class B shares for this short period are not meaningful and
therefore are not presented.
(2) Based on average shares outstanding.
(3) Total return for periods of less than one full year are not annualized.
Total return does not consider the effect of sales charges.
See Notes to Financial Statements
15
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
Selected data for a share of capital stock outstanding throughout each of the
periods indicated (Unaudited).
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C
--------------------------------------------
Six Months July 20, 1993(/2/)
Ended June Year Ended through
30, December 31, December 31,
1995(/1/) 1994(/1/) 1993(/1/)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of
period.......................... $11.42 $12.23 $12.66
------ ------ ------
Income from operations
Investment income............... .10 .06 .08
Expenses........................ (.11) (.06) (.11)
------ ------ ------
Net investment income (loss)..... (.01) 00 (.03)
Net realized and unrealized gains
or losses on securities......... 2.34 (.1375) .765
------ ------ ------
Total from investment operations. 2.33 (.1375) .735
------ ------ ------
Less distributions from
Net realized gains on
securities..................... (.11) (.6725) (1.165)
------ ------ ------
Total distributions.............. (.11) (.6725) (1.165)
------ ------ ------
Net asset value, end of period... $13.64 $11.42 $12.23
------ ------ ------
TOTAL RETURN(/3/)................ 20.51% (.99%) 6.08%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(millions)...................... $10.5 $7.4 $2.1
Average net assets (millions).... $8.8 $5.9 $0.8
Ratios to average net assets
(annualized)
Expenses........................ 1.86% 1.90% 1.83%
Net investment income (loss).... (.17%) (.12%) (.48%)
Portfolio turnover rate.......... 54% 176% 196%
</TABLE>
(1) Based on average shares outstanding.
(2) Commencement of offering of sales.
(3) Total return for periods of less than one full year are not annualized.
Total return does not consider the effect of sales charges.
See Notes to Financial Statements
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
- --------------------------------------------------------------------------------
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
American Capital Enterprise Fund, Inc. (the "Fund") is registered under the In-
vestment Company Act of 1940, as amended, as a diversified open-end management
investment company, The following is a summary of significant accounting poli-
cies consistently followed by the Fund in the preparation of its financial
statements.
A. INVESTMENT VALUATIONS-Securities listed or traded on a national securities
exchange are valued at the last sale price. Unlisted securities and listed se-
curities for which the last sale price is not available are valued at the mean
between the last reported bid and asked price.
Short-term investments with a maturity of 60 days or less when purchased are
valued at amortized cost, which approximates market value. Short-term invest-
ments with a maturity of more than 60 days when purchased are valued based on
market quotations until the remaining days to maturity becomes less than 61
days. From such time, until maturity, the investments are valued at amortized
cost.
B. FUTURES CONTRACTS-Transactions in futures contracts are utilized in strate-
gies to manage the market risk of the Fund's investments. The purchase of a
futures contract increases the impact on net asset value of changes in the mar-
ket price of investments. There is a risk that the market movement of such in-
struments may not be in the direction forecasted.
Upon entering into futures contracts, the Fund maintains, in a segregated ac-
count with its custodian, securities with a value equal to its obligation under
the futures contracts. A portion of these funds is held as collateral in an ac-
count in the name of the broker. During the period the futures contract is
open, changes in the value of the contract ("variation margin") are recognized
by marking the contract to market on a daily basis. As unrealized gains or
losses are incurred, variation margin payments are received from or made to the
broker. Upon the closing or cash settlement of a contract, gains or losses are
realized. The cost of securities acquired through delivery under a contract is
adjusted by the unrealized gain or loss on the contract.
C. REPURCHASE AGREEMENTS-A repurchase agreement is a short-term investment in
which a Fund acquires ownership of a debt security and the seller agrees to re-
purchase the security at a future time and specified price. The Fund may invest
independently in repurchase agreements, or transfer uninvested cash balances
into a pooled cash account along with other investment companies advised by Van
Kampen American Capital Asset Management, Inc. ("The Adviser"), the daily ag-
gregate of which is invested in repurchase agreements. Repurchase agreements
are collateralized by the underlying debt security. The Fund will make payment
for such securities only upon physical delivery or evidence of book entry
transfer to
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
- -------------------------------------------------------------------------------
the account of the custodian bank. The seller is required to maintain the
value of the underlying security at not less than the repurchase proceeds due
the Fund.
D. FEDERAL INCOME TAXES-No provision for federal income taxes is required be-
cause the Fund has elected to be taxed as "regulated investment company" under
the Internal Revenue Code and intends to maintain this qualification by annu-
ally distributing all of its taxable net investment income and taxable net re-
alized gains on investments to its shareholders. It is anticipated that no
distributions of capital gains will be made until tax basis capital loss
carryforwards expire or are offset by net realized capital gains.
For federal income tax purposes, the net realized capital loss carryforward
of approximately $843,000 at December 31, 1994, may be utilized to offset cur-
rent or future capital gains until expiration in 1995.
E. INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME-Investment transac-
tions are accounted for on the trade date. Realized gains and losses on in-
vestments are determined on the basis of identified cost. Dividend income is
recorded on the ex-dividend date. Interest income is accrued daily.
F. DIVIDENDS AND DISTRIBUTIONS-Dividends and distributions to shareholders are
recorded on the record date. The Fund distributes tax basis earnings in accor-
dance with the minimum distribution requirements of the Internal Revenue Code,
which may differ from generally accepted accounting principles. Such dividends
or distributions may exceed financial statement earnings.
NOTE 2--MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Adviser serves as investment manager of the Fund. Management fees are paid
monthly, based on the average daily net assets of the Fund at an annual rate
of .50% of the first $1 billion, .45% of the next $1 billion, .40% of the next
$1 billion, and .55% of the amount in excess of $3 billion.
Accounting services include the salaries and overhead expenses of the Fund's
Treasurer and the personnel operating under his direction. Charges are allo-
cated among investment companies advised by the Adviser. For the period, these
charges included $12,990 as the Fund's share of the employee costs attribut-
able to the Fund's accounting officers. A portion of the accounting services
expenses was paid to the Adviser in reimbursement of personnel, facilities and
equipment costs attributable to the provision of accounting services to the
Fund. The services provided by the Adviser are at cost.
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
- --------------------------------------------------------------------------------
ACCESS Investor Services, Inc., an affiliate of the Adviser, serves as share-
holder service agent of the Fund. These services are provided at cost plus a
profit. For the period, such fees aggregated $1,234,162.
The Fund was advised that Van Kampen American Capital Distributors, Inc. (the
"Distributor"), and Advantage Capital Corporation (the "Retail Dealer"), both
affiliates of the Adviser, received $18,313 and $40,875, respectively, as their
portion of the commissions charged on sales of Fund shares during the period.
Under the Distribution Plans, each class of shares pays up to .25% per annum
of its average daily net assets to reimburse the Distributor for expenses and
service fees incurred. The Class B and Class C shares pay an additional fee of
up to .75% per annum of their average daily net assets to reimburse the Dis-
tributor for its distribution expenses. Actual distribution expenses incurred
by the Distributor for Class B and Class C shares may exceed the amounts reim-
bursed to the Distributor by the Fund. At the end of the period, the
unreimbursed expenses incurred by the Distributor under the Class B and Class C
plans aggregated approximately $6.4 million and $85,000, respectively, and may
be carried forward and reimbursed through either the collection of the contin-
gent deferred sales charges from share redemptions or, subject to the annual
renewal of the plans, future Fund reimbursements of distribution fees.
Legal fees of $8,673 were for services rendered by O'Melveny & Myers, counsel
for the fund. Lawrence J. Sheehan, of counsel to that firm, is a director of
the Fund.
Certain officers and directors of the Fund are officers and directors of the
Adviser, the Distributor, the Retail Dealer and the shareholder service agent.
NOTE 3--INVESTMENT ACTIVITY
During the period, the cost of purchases and proceeds from sales of invest-
ments, excluding short-term investments, were $534,516,740 and $485,865,408,
respectively.
For federal income tax purposes, the identified cost of investments owned at
the end of the period was $892,791,032. Net unrealized appreciation of invest-
ments aggregated $202,276,233, gross unrealized appreciation of investments ag-
gregated $208,615,844 and gross unrealized depreciation of investments
aggregated $6,339,611.
NOTE 4--DIRECTOR COMPENSATION
Fund directors who are not affiliated with the Adviser are compensated by the
Fund at the annual rate of $2,090 plus a fee of $50 per day for Board and Com-
mittee meetings attended. The Chairman receives additional fees from the Fund
at the annual rate of $780. During the period, such fees aggregated $14,046.
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
- -------------------------------------------------------------------------------
The directors may participate in a voluntary Deferred Compensation Plan (the
"Plan"). The Plan is not funded, and obligations under the Plan will be paid
solely out of the Fund's general accounts. The Fund will not reserve or set
aside funds for the payment of its obligations under the Plan by any form of
trust or escrow. Each director covered under the Plan elects to be credited
with an earnings component on amounts deferred equal to the income earned by
the Fund on its short-term investments or equal to the total return of the
Fund.
NOTE 5--CAPITAL
The Fund offers three classes of shares at their respective net asset values
per share, plus a sales charge which is imposed either at the time of purchase
(the Class A shares) or at the time of redemption on a contingent deferred ba-
sis (the Class B and Class C shares). Each class of shares has the same
rights, except that Class B and Class C shares bear the cost of distribution
fees and certain other class specific expenses. Realized and unrealized gains
or losses, investment income and expenses (other than class specific expenses)
are allocated daily to each class of shares based upon the relative proportion
of net assets of each class. Class B and Class C shares automatically convert
to Class A shares six years and ten years after purchase, respectively, sub-
ject to certain conditions.
The Fund has 200 million of each class of shares of $1.00 par value capital
stock authorized. Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, December 31,
1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C>
Shares sold
Class A........................................ 45,200,848 88,756,758
Class B........................................ 3,745,420 7,241,495
Class C........................................ 357,834 1,852,492
----------- -----------
49,304,102 97,850,745
----------- -----------
Shares issued for distributions reinvested
Class A........................................ 535,871 3,777,078
Class B........................................ 81,546 432,428
Class C........................................ 5,489 33,138
----------- -----------
622,906 4,242,644
----------- -----------
Shares redeemed
Class A........................................ (43,629,814) (90,630,945)
Class B........................................ (1,649,811) (4,873,905)
Class C........................................ (247,354) (1,404,906)
----------- -----------
(45,526,979) (96,909,756)
----------- -----------
Increase in shares outstanding.................. 4,400,029 5,183,633
----------- -----------
</TABLE>
NOTE 6--FUND REORGANIZATION
On July 21, 1995, the shareholders approved the reorganization of the Fund to
a Delaware Business Trust and the election of fourteen trustees.
20
<PAGE>
FUNDS DISTRIBUTED BY VAN KAMPEN AMERICAN CAPITAL
GLOBAL AND INTERNATIONAL
Global Equity Fund
Global Government Securities Fund
Global Managed Assets Fund
Short-Term Global Income Fund
Strategic Income Fund
EQUITY
Growth
Emerging Growth Fund
Enterprise Fund
Pace Fund
Growth & Income
Balanced Fund
Comstock Fund
Equity Income Fund
Growth and Income Fund
Harbor Fund
Real Estate Securities Fund
Utility Fund
FIXED INCOME
Corporate Bond Fund
Government Securities Fund
High Income Corporate Bond Fund
High Yield Fund
Limited Maturity Government Fund
Prime Rate Income Trust
Reserve Fund
U.S. Government Fund
U.S. Government Trust for Income
TAX-FREE
California Insured Tax Free Fund
Florida Insured Tax Free Income Fund
High Yield Municipal Fund
Insured Tax Free Income Fund
Limited Term Municipal Income Fund
Municipal Income Fund
New Jersey Tax Free Income Fund
New York Tax Free Income Fund
Pennsylvania Tax Free Income Fund
Tax Free High Income Fund
Tax Free Money Fund
Texas Tax Free Income Fund
THE GOVETT FUNDS
Emerging Markets Fund
Global Income Fund
International Equity Fund
Latin America Fund
Pacific Strategy Fund
Smaller Companies Fund
Ask your investment representative for a prospectus containing more complete
information, including sales charges and expenses. Please read it carefully
before you invest or send money. Or call us direct at 1-800-421-5666 weekdays
from 7:00 a.m. to 7:00 p.m. Central time.
21
<PAGE>
AMERICAN CAPITAL ENTERPRISE FUND, INC.
BOARD OF DIRECTORS
J. MILES BRANAGAN
RICHARD E. CARUSO
ROGER HILSMAN
DON G. POWELL
DAVID REES
LAWRENCE J. SHEEHAN
FERNANDO SISTO*
WILLIAM S. WOODSIDE
*Chairman of the Board
OFFICERS
DON G. POWELL
President
CURTIS W. MORELL
Vice President and Treasurer
DENNIS J. MCDONNELL
JEFF D. NEW
RONALD A. NYBERG
ALAN T. SACHTLEBEN
PAUL R. WOLKENBERG
Vice Presidents
TANYA M. LODEN
Vice President and Controller
NORI L. GABERT
Vice President and Secretary
J. DAVID WISE
Vice President and Assistant Secretary
PERRY F. FARRELL
M. ROBERT SULLIVAN
Assistant Treasurers
HUEY P. FALGOUT, JR.
Assistant Secretary
INVESTMENT ADVISER
VAN KAMPEN AMERICAN CAPITAL
ASSET MANAGEMENT INC.
2800 Post Oak Blvd.,
Houston, Texas 77056
DISTRIBUTOR
VAN KAMPEN AMERICAN CAPITAL
DISTRIBUTORS, INC.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181
SHAREHOLDER SERVICE AGENT
ACCESS INVESTOR SERVICES, INC.
P.O. Box 418256,
Kansas City, Missouri 64141-9256
CUSTODIAN
STATE STREET BANK
AND TRUST COMPANY
225 Franklin Street,
Boston, Massachusetts 02110
COUNSEL
O'MELVENY & MYERS
400 South Hope Street,
Los Angeles, California 90071
(C) Van Kampen American Capital Distributors, Inc., 1995 All rights reserved.
/SM/ denotes a service mark of
Van Kampen American Capital Distributors, Inc.
This report is submitted for the general information of the shareholders of
the Fund. It is not authorized for distribution to prospective investors un-
less it has been preceded or is accompanied by an effective prospectus of the
Fund which contains additional information on how to purchase shares, the
sales charge, and other pertinent data.
22
<PAGE>
AMERICAN CAPITAL ENTERPRISE FUND, INC.
THIS PAGE INTENTIONALLY LEFT BLANK
23
<PAGE>
AMERICAN CAPITAL ENTERPRISE FUND, INC.
THIS PAGE INTENTIONALLY LEFT BLANK
24
