SEMI-ANNUAL REPORT
June 30, 1999
[Photo of eggs in silver trays]
THE ENTERPRISE GROUP OF FUNDS, INC.
<PAGE>
================================================================================
THE ENTERPRISE GROUP OF FUNDS, INC.
================================================================================
Enterprise Growth Fund
Enterprise Equity Fund
Enterprise Growth and Income Fund
Enterprise Equity Income Fund
Enterprise Capital Appreciation Fund
Enterprise Small Company Growth Fund
Enterprise Small Company Value Fund
Enterprise International Growth Fund
Enterprise Global Financial Services Fund
Enterprise Government Securities Fund
Enterprise High-Yield Bond Fund
Enterprise Tax-Exempt Income Fund
Enterprise Managed Fund
Enterprise Money Market Fund
================================================================================
<PAGE>
Table of Contents
<TABLE>
<CAPTION>
Page
-----
<S> <C>
Enterprise Growth Fund
Manager's Comments .......................... 4
Portfolio of Investments .................... 5
Enterprise Equity Fund
Manager's Comments .......................... 6
Portfolio of Investments .................... 7
Enterprise Growth and Income Fund
Manager's Comments .......................... 9
Portfolio of Investments .................... 10
Enterprise Equity Income Fund
Manager's Comments .......................... 12
Portfolio of Investments .................... 13
Enterprise Capital Appreciation Fund
Manager's Comments .......................... 15
Portfolio of Investments .................... 17
Enterprise Small Company Growth Fund
Manager's Comments .......................... 19
Portfolio of Investments .................... 21
Enterprise Small Company Value Fund
Manager's Comments .......................... 22
Portfolio of Investments .................... 24
Enterprise International Growth Fund
Manager's Comments .......................... 28
Portfolio of Investments .................... 29
Enterprise Global Financial Services Fund
Manager's Comments .......................... 31
Portfolio of Investments .................... 33
Enterprise Government Securities Fund
Manager's Comments .......................... 35
Portfolio of Investments .................... 36
Enterprise High-Yield Bond Fund
Manager's Comments .......................... 37
Portfolio of Investments .................... 38
Enterprise Tax-Exempt Income Fund
Manager's Comments .......................... 44
Portfolio of Investments .................... 46
Enterprise Managed Fund
Manager's Comments .......................... 48
Portfolio of Investments .................... 49
Enterprise Money Market Fund
Manager's Comments .......................... 51
Portfolio of Investments .................... 52
Statements of Assets and Liabilities ......... 54
Statements of Operations ..................... 56
Statements of Changes in Net Assets .......... 58
Financial Highlights ......................... 62
Notes to Financial Statements ................ 90
</TABLE>
Returns in this report are historical and do not guarantee future performance of
any fund. Investment return and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
<PAGE>
[GRAPHIC]
ENTERPRISE
GROUP OF FUNDS
- --------------------------------------------------------------------------------
MESSAGE FROM THE CHAIRMAN
Dear Fellow Shareholders:
Just like most of the 1990's, which has witnessed stock gains in each year
except for 1990 as measured by the S&P 500 Composite Index, the first half of
1999 has been a good period for U.S. equity investors. According to Lipper Inc.,
the average diversified U.S. stock fund posted a total return of 11.04 percent,
including reinvested dividends, through June 30. On the fixed-income side,
Lipper reported that taxable bond funds were down 0.07 percent year-to-date.
Investors in early 1999 preferred large-cap growth stocks. In addition,
market gains were fueled by strength in Internet/technology issues with weakness
in value sectors such as basic industry and energy, causing a disparity in style
performance. However, the large-cap advance was interrupted as investors shifted
their focus in April to long out-of-favor "value" stocks, small and mid-cap
stocks and even some stocks in the almost forgotten overseas markets. The
broadening of the market was good news for diversified investors. The average
diversified U.S. stock fund as of June 30 gained 10.16 percent for the 2nd
quarter while the S&P 500 Composite Index rose 7.06 percent, according to
Lipper.
First half gains did not come worry-free. By mid-May, investors had become
concerned that the prospect of strong profit growth combined with low
unemployment would ultimately ignite inflationary fires and higher interest
rates. Accordingly, share prices moved lower until late June when the Federal
Reserve's Open Market Committee responded by raising the Federal Reserve
discount rate 0.25 percent -- calming inflation fears without dealing economic
growth a fatal blow. Equity markets, in an almost relief rally, moved up with
most major stock averages ending June above or near their all-time highs.
Further good news for diversified investors came from foreign markets where
the economic problems that flattened many Asian, Eastern European and Latin
American markets in 1998 appeared to be easing. Japan funds gained 38.23 percent
and emerging market funds rose 34.59 percent through June 30, according to
Lipper.
Bond prices moved grudgingly lower for much of the first half of the year
as fixed-income investors, in anticipation of higher interest rates, pushed the
yield on the benchmark 30-year Treasury to 6.16 percent after touching 4.70
percent in October 1998. With the Fed tightening, bond investors became more
comfortable that keeping a watchful eye on inflation was a top Fed priority.
Fixed-income markets recovered to move interest rates on the 30-year Treasury
below 6 percent to 5.96 percent by June 30, according to data reported by The
Wall Street Journal.
Looking Forward
For the past several years the U.S. has been the primary force in the
global economy as European and Asian growth slowed or stopped. Now these areas,
as well as emerging markets in Asia and Latin America, appear to be on the mend.
The Federal Reserve's June interest rate boost addressed concerns about domestic
inflation and put more responsibility on the rest of the world to move ahead
without the U.S. economy overheating. However, there will always be uncertain or
unknown events that may impact the investment environment. This underscores the
importance for investors to develop a long-term investment strategy constructed
and implemented with the help of professional financial advisors. And, as
always, it is prudent to remember that past performance does not guarantee
future results.
THE ENTERPRISE Group of Funds, Inc.
2
<PAGE>
- --------------------------------------------------------------------------------
Enterprise, in its continuous efforts to provide its shareholders with
access to investment managers and styles we believe are best suited to help them
reach their investment objectives, is pleased to announce that three new funds:
the Enterprise Internet Fund, the Enterprise Multi-Cap Growth Fund, and the
Enterprise Balanced Fund were introduced on July 1, 1999. The Enterprise
Internet Fund is for investors seeking capital appreciation and access to
companies that are involved in Internet, Intranet and other high tech
businesses. The Fund is managed by Fred Alger Management, Inc. For investors
seeking capital appreciation from growing companies without regard to size, the
Enterprise Multi-Cap Growth Fund, also managed by Fred Alger, emphasizes this
objective and investment style. Montag & Caldwell, manager of the Enterprise
Growth Fund, is also the manager of the Enterprise Balanced Fund. This Fund is
for investors seeking a mix of equity and fixed-income investments, the
allocation of which shifts within allowable parameters based on the manager's
assessment of the return potential for each class.
The Enterprise Group of Funds provides a level of professional money
management once reserved for only the largest institutional investors.
Enterprise's different funds are managed by separate independent asset
management firms, each a recognized specialist in its own area of investment
expertise. Selected based upon industry reputation and investment track record,
each firm is continuously monitored by Enterprise and a national leading
consulting firm to ensure that high standards of performance and professionalism
continue to be met. Significantly, these firms primarily manage multi-million
dollar portfolios on behalf of corporations, nonprofit organizations and
government entities who are able to meet minimum investment requirements of up
to $40 million. Collectively these firms manage well over $275 billion in
investment assets. Enterprise's distinctive management strategy provides
individual investors the benefits of diversification amongst multiple asset
management firms along with the conveniences of exchange privileges and
consolidated statements -- all with a minimum investment of as little as $1,000
per fund.
We will continue to provide you with access to these firms -- some of the
most accomplished institutional investment firms in the industry. We appreciate
your confidence in The Enterprise Group of Funds as we continue to be
acknowledged as one of the industry's fastest growing fund complexes1 -- and
look forward to working with you and your financial advisor.
Sincerely,
/s/ Victor Ugolyn
Victor Ugolyn
Chairman, President and Chief Executive Officer
(1) Source: Strategic Insight, an independent financial research firm, and
Enterprise research. Ranking of long-term, open-end fund families with at least
$1 billion in assets under management as of 12/98 based on net sales flow as a
percentage of assets for the period 1/99 - 6/99. Enterprise placed 16th out of
232 fund families, 135 of which reflected positive growth.
THE ENTERPRISE Group of Funds, Inc.
3
<PAGE>
Enterprise Growth Fund
Montag & Caldwell, Inc.
Atlanta, Georgia
Investment Management
Montag & Caldwell has served as Fund Manager to the Enterprise Growth Fund since
the fund was organized in 1968. Montag & Caldwell manages approximately $31
billion for institutional clients, and its normal investment minimum is $40
million.
Investment Objective
The objective of the Enterprise Growth Fund is to seek capital appreciation.
Investment Strategies
The Growth Fund invests primarily in U.S. common stocks. The "Growth at a
Reasonable Price" strategy employed by the Fund combines growth and value style
investing. This means that the Fund invests in the stocks of companies with
long-term earnings potential but which are currently selling at a discount to
their estimated long-term value. The Fund's equity selection process is
generally lower risk than a typical growth stock approach. Valuation is the key
selection criterion which makes the investment style risk averse. Also
emphasized are growth characteristics to identify companies whose shares are
attractively priced and may experience strong earnings growth relative to other
companies.
First Half 1999 Performance Review
After a strong gain in the first quarter of 1999, the Fund experienced a
moderate increase in value during the second quarter. During the first half of
the year, weakness in the shares of global consumer growth companies and
pharmaceutical holdings offset continued strength in technology positions.
Specifically, Coca-Cola, Gillette, and McDonald's struggled as improving
economic conditions in emerging markets have yet to translate into increased
demand for consumer goods. Montag took advantage of price weaknesses during this
time to add to the Fund's positions in Coca-Cola, Gillette, and Proctor &
Gamble. Investor enthusiasm for cyclical sectors, growing concerns over
potential legislative action to regulate drug prices, and a general rotation out
of the healthcare sector resulted in lower share prices for many attractive
companies. In response to this price movement, Montag added to the Fund's
position in Pfizer. With regard to technology holdings, improving sales and
order trends translated into significant price appreciation for the shares of
Hewlett-Packard, Solectron, and Tellabs.
Future Investment Strategy
The U.S. economy continues its march towards establishing a record for the
longest expansion in its history. Only the 106-month expansion of the 1960s is
longer in duration, and each day of growth after January 16, 2000, will mean new
records of achievement in U.S. economic history. While the U.S. economy's
fundamentals continue to be good, higher bond yields may offset the positive
effect on share prices of greater-than-forecasted corporate profits. Because the
major stock market indices are already at record valuation levels and investor
enthusiasm is quite high, the increase in bond yields, along with rising
short-term interest rates, temper our outlook for the second half of 1999. Also,
investors may become anxious as we head into the year 2000 ("Y2K"), creating
additional market volatility as the economy is moderately impacted by a build-up
and then draw-down of inventories around the turn of the century. Given these
developing trends, Montag believes it is appropriate to maintain some buying
reserves in the Fund. This will increase Montag's flexibility to navigate better
in more uncertain periods ahead and take advantage of attractive opportunities.
Montag continues to favor the shares of consumer global growth companies,
well-positioned pharmaceutical and medical device companies and high-growth
technology enterprises that have staying power. While the Fund's consumer global
growth holdings were weak during the second quarter, Montag expects a pick-up in
earnings growth for these high-quality companies in the second half of this year
and solid earnings momentum thereafter. Research-driven pharmaceutical companies
may perform better in the period ahead as these stocks offer an attractive
combination of value and double-digit earnings growth prospects. The outlook
continues to be bright for the leading medical device companies. Selected
technology holdings remain attractive as global industry conditions improve and
the build-out of the Internet further stimulates product demand.
The views expressed in this report reflect those of the Fund Manager only
through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
THE ENTERPRISE Group of Funds, Inc.
4
<PAGE>
ENTERPRISE GROWTH FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 90.99%
- ----------------------------------------------------------------------------
Business Services -- 2.14%
- ----------------------------------------------------------------------------
Interpublic Group of Companies Inc. 500,000 $ 43,312,500
Computer Hardware -- 10.00%
- ----------------------------------------------------------------------------
Cisco Systems Inc. (a) ................ 476,500 30,734,250
EMC Corporation (a) ................... 359,100 19,750,500
Hewlett-Packard Company ............... 834,400 83,857,200
Intel Corporation ..................... 1,140,000 67,830,000
--------------
202,171,950
Computer Services -- 5.30%
- ----------------------------------------------------------------------------
Electronic Data Systems
Corporation (New) ................... 1,063,300 60,142,906
Solectron Corporation (a) ............. 703,800 46,934,663
--------------
107,077,569
Computer Software -- 6.00%
- ----------------------------------------------------------------------------
Electronic Arts Inc. (a) .............. 500,000 27,125,000
Microsoft Corporation (a) ............. 680,000 61,327,500
Oracle System Corporation (a) ......... 885,000 32,855,625
--------------
121,308,125
Consumer Products -- 10.25%
- ----------------------------------------------------------------------------
Gillette Company ...................... 2,100,000 86,100,000
Newell Rubbermaid Inc. ................ 686,400 31,917,600
Procter & Gamble Company .............. 1,000,000 89,250,000
--------------
207,267,600
Electrical Equipment -- 2.93%
- ----------------------------------------------------------------------------
General Electric Company .............. 525,000 59,325,000
Entertainment & Leisure -- 3.70%
- ----------------------------------------------------------------------------
Carnival Corporation .................. 575,600 27,916,600
Walt Disney Company ................... 1,524,600 46,976,738
--------------
74,893,338
Food & Beverages & Tobacco -- 6.69%
- ----------------------------------------------------------------------------
Bestfoods ............................. 900,000 44,550,000
Coca-Cola Company ..................... 1,450,000 90,625,000
--------------
135,175,000
Health Care -- 3.42%
- ----------------------------------------------------------------------------
Medtronic Inc. ........................ 887,800 69,137,425
Hotels & Restaurants -- 5.05%
- ----------------------------------------------------------------------------
Marriott International Inc. (Class A) 1,079,200 40,335,100
McDonald's Corporation ................ 1,496,600 61,828,287
--------------
102,163,387
Medical Instruments -- 3.48%
- ----------------------------------------------------------------------------
Boston Scientific Corporation (a) ..... 1,600,000 70,300,000
Misc. Financial Services -- 2.72%
- ----------------------------------------------------------------------------
American Express Company .............. 422,600 54,990,825
Multi-Line Insurance -- 2.90%
- ----------------------------------------------------------------------------
American International Group Inc. ..... 500,000 58,531,250
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Pharmaceuticals -- 15.70%
- ----------------------------------------------------------------------------
Bristol Myers Squibb Company .......... 1,150,000 $ 81,003,125
Johnson & Johnson ..................... 820,000 80,360,000
Lilly (Eli) & Company ................. 397,800 28,492,425
Merck & Company Inc. .................. 417,900 30,924,600
Pfizer Inc. ........................... 880,000 96,580,000
--------------
317,360,150
Retail -- 6.45%
- ----------------------------------------------------------------------------
Costco Companies Inc. (a) ............. 286,100 22,905,881
Gap Inc. .............................. 953,175 48,016,191
Home Depot Inc. ....................... 923,400 59,501,587
--------------
130,423,659
Telecommunications -- 4.26%
- ----------------------------------------------------------------------------
MCI Worldcom Inc. (a) ................. 500,000 43,031,250
Tellabs Inc. (a) ...................... 636,600 43,010,288
--------------
86,041,538
--------------
Total Common Stocks
(Identified cost $1,337,601,577)........................ 1,839,479,316
- ----------------------------------------------------------------------------
Commercial Paper -- 4.64%
- ----------------------------------------------------------------------------
Associates First Capital
Corporation, 4.75% due 07/01/99 $18,000,000 18,000,000
Ford Motor Credit Company
5.20% due 07/12/99 .................. 11,000,000 10,982,522
Ford Motor Credit Company
5.21% due 07/06/99 .................. 57,000,000 56,958,754
Ford Motor Credit Company
5.22% due 07/08/99 .................. 8,000,000 7,991,880
--------------
Total Commercial Paper
(Identified cost $93,933,156)............................ 93,933,156
- ----------------------------------------------------------------------------
Repurchase Agreement -- 4.94%
- ----------------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 4.25%
due 07/01/99
Collateral: U.S. Treasury Note
$98,425,000, 7.125% due
02/29/00 Value $104,247,285 ......... 99,905,000 99,905,000
--------------
Total Repurchase Agreement
(Identified cost $99,905,000)......................... 99,905,000
- ----------------------------------------------------------------------------
Total Investments
(Identified cost $1,531,439,733)........................$2,033,317,472
Other Assets Less Liabilities -- (0.57)%................ (11,613,730)
--------------
Net Assets -- 100% ..................................... $2,021,703,742
- ----------------------------------------------------------------------------
</TABLE>
(a) Non-income producing security.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
5
<PAGE>
Enterprise Equity Fund
OpCap Advisors, Inc.
New York, New York
Investment Management
OpCap Advisors, a wholly owned subsidiary of Oppenheimer Capital, became Fund
Manager to the Enterprise Equity Fund on May 1, 1997. Oppenheimer Capital
manages approximately $60 billion for institutional clients, and its normal
investment minimum is $20 million.
Investment Objective
The objective of the Enterprise Equity Fund is long-term capital appreciation.
Investment Strategies
The Equity Fund invests primarily in U.S. common stocks of companies that meet
the Fund Manager's criteria of high return on investment capital, strong
positions within their industries, sound financial fundamentals and management
committed to shareholder interests. The Fund Manager selects companies with one
or more of the following characteristics: substantial and growing discretionary
cash flow, strong shareholder value-oriented management, valuable consumer or
commercial franchises, high return on capital, favorable price to intrinsic
value, and undervalued assets. The Fund Manager also imposes a strict sell
discipline to sell the stock once it rises close to the target price established
by the Fund Manager.
First Half 1999 Performance Review
Value stocks came back to life in the first half of 1999. Value stocks include
those judged to be trading at market prices well below the inherent value of the
business, while growth stocks include those believed to have excellent long-term
earnings growth prospects. After an extended period in which stock market gains
were driven by a limited number of technology and large-cap growth issues,
market leadership broadened to include undervalued stocks with strong business
fundamentals of the type owned in the Fund.
Some of the holdings that contributed to the Fund's performance included
Computer Associates International, Inc., Rockwell International Corp.,
AlliedSignal, Inc., Motorola, Inc. and Wells Fargo & Co.
OpCap continues to find quality stocks that meet strict value criteria.
Purchases of these included the common stocks of Cadence Design Systems, Inc.,
Chancellor Media Corp., Emerson Electric Company, Monsanto Company, News Corp.
Ltd., Raytheon Company, Walt Disney Company, and Waste Management, Inc.
Fund sales included positions in AlliedSignal, Inc., Champion International
Corp., International Flavours & Fragrances, Inc. and Tenet Healthcare Corp.
Future Investment Strategy
Despite their gains in the second quarter, the types of value stocks in which
OpCap invests continue to trade at a significant discount to large-cap growth
stocks and the market in general. OpCap believes this may bode well for the
Fund's value style in the months ahead.
OpCap continues to look for -- and find -- great companies with strong,
sustainable cash flows, high competitive barriers, and rational managements with
proven track records who are dedicated to shareholder value.
OpCap believes its long-term perspective and emphasis on buying superior
undervalued businesses provide a competitive advantage as the market moves away
from highly priced growth stocks toward a renewed recognition of the enduring
value of a company's earnings, cash flow and competitiveness.
The views expressed in this report reflect those of the Fund Manager only
through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
THE ENTERPRISE Group of Funds, Inc.
6
<PAGE>
ENTERPRISE EQUITY FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 89.42%
- ----------------------------------------------------------------------
Advertising -- 1.51%
- ----------------------------------------------------------------------
Omnicom Group Inc. ....................... 4,000 $ 320,000
Aerospace -- 5.57%
- ----------------------------------------------------------------------
General Dynamics Corporation ............. 9,000 616,500
Raytheon Company (Class B) ............... 8,000 563,000
----------
1,179,500
Banking -- 5.54%
- ----------------------------------------------------------------------
BankBoston Corporation ................... 10,400 531,700
Wells Fargo & Company .................... 15,000 641,250
----------
1,172,950
Broadcasting -- 2.48%
- ----------------------------------------------------------------------
Chancellor Media Corporation (a) ......... 5,500 303,187
News Corporation Ltd. (ADR) .............. 7,000 220,938
----------
524,125
Chemicals -- 3.45%
- ----------------------------------------------------------------------
Du Pont (E. I.) De Nemours & Company 7,800 532,837
Monsanto Company ......................... 5,000 197,188
----------
730,025
Computer Hardware -- 1.57%
- ----------------------------------------------------------------------
Compaq Computer Corporation .............. 14,000 331,625
Computer Services -- 0.81%
- ----------------------------------------------------------------------
Sabre Group Holdings Inc. (Class A) (a)... 2,500 171,875
Computer Software -- 4.76%
- ----------------------------------------------------------------------
Cadence Design Systems Inc. (a) .......... 10,000 127,500
Computer Associates International Inc. ... 16,000 880,000
----------
1,007,500
Conglomerates -- 5.95%
- ----------------------------------------------------------------------
Minnesota Mining & Manufacturing
Company ................................ 6,900 599,869
Textron Inc. ............................. 8,000 658,500
----------
1,258,369
Consumer Products -- 0.75%
- ----------------------------------------------------------------------
Mattel Inc. .............................. 6,000 158,625
Drugs & Medical Products -- 1.25%
- ----------------------------------------------------------------------
Becton, Dickinson & Company .............. 8,800 264,000
Electrical Equipment -- 1.94%
- ----------------------------------------------------------------------
Avnet Inc. ............................... 3,400 158,100
Emerson Electric Company ................. 4,000 251,500
----------
409,600
Electronics -- 2.01%
- ----------------------------------------------------------------------
Rockwell International Corporation ....... 7,000 425,250
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Entertainment & Leisure -- 1.97%
- ----------------------------------------------------------------------
Carnival Corporation ..................... 3,000 $ 145,500
Walt Disney Company ...................... 8,800 271,150
----------
416,650
Finance -- 4.74%
- ----------------------------------------------------------------------
Citigroup Inc. ........................... 13,125 623,437
Household International Inc. ............. 8,000 379,000
----------
1,002,437
Food & Beverages & Tobacco -- 3.14%
- ----------------------------------------------------------------------
Diageo (ADR) ............................. 6,100 262,300
Heinz (H. J.) Company .................... 8,000 401,000
----------
663,300
Hotels & Restaurants -- 1.95%
- ----------------------------------------------------------------------
McDonald's Corporation ................... 10,000 413,125
Insurance -- 6.37%
- ----------------------------------------------------------------------
ACE Ltd. ................................. 11,100 313,575
AFLAC Inc. ............................... 8,700 416,512
Everest Reinsurance Holdings Inc. ........ 14,400 469,800
RenaissanceRe Holdings Ltd. .............. 4,000 148,000
----------
1,347,887
Machinery -- 4.43%
- ----------------------------------------------------------------------
Caterpillar Inc. ......................... 6,700 402,000
Dover Corporation ........................ 15,300 535,500
----------
937,500
Manufacturing -- 2.28%
- ----------------------------------------------------------------------
Avery Dennison Corporation ............... 8,000 483,000
Misc. Financial Services -- 6.14%
- ----------------------------------------------------------------------
Conseco Inc. ............................. 15,365 467,672
Countrywide Credit Industries Inc. ....... 8,600 367,650
Freddie Mac .............................. 8,000 464,000
----------
1,299,322
Multi-Line Insurance -- 0.82%
- ----------------------------------------------------------------------
American International Group Inc. ........ 1,475 172,667
Property-Casualty Insurance -- 4.83%
- ----------------------------------------------------------------------
Chubb Corporation ........................ 3,000 208,500
XL Capital Ltd. (Class A) ................ 14,394 813,261
----------
1,021,761
Printing & Publishing -- 2.10%
- ----------------------------------------------------------------------
Donnelley (R. R.) & Sons Company ......... 12,000 444,750
Retail -- 2.12%
- ----------------------------------------------------------------------
May Department Stores Company ............ 10,950 447,581
Telecommunications -- 4.73%
- ----------------------------------------------------------------------
Motorola Inc. ............................ 7,100 672,725
Sprint Corporation ....................... 6,200 327,438
----------
1,000,163
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
7
<PAGE>
ENTERPRISE EQUITY FUND --(Continued)
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Transportation -- 3.72%
- ---------------------------------------------------------------------------
AMR Corporation (a) ...................... 9,100 $ 621,075
Canadian Pacific Ltd. .................... 7,000 166,688
-----------
787,763
Waste Management -- 2.49%
- ---------------------------------------------------------------------------
Waste Management Inc. .................... 9,800 526,750
-----------
Total Common Stocks
(Identified cost $16,642,402)........................... 18,918,100
- ------------------------------------------------------------------------
Commercial Paper -- 4.71%
- ---------------------------------------------------------------------------
American Express Credit Corporation,
4.94% due 07/15/99 ..................... $500,000 499,039
Ford Motor Credit Company 5.15%
due 08/05/99 ........................... 500,000 497,497
-----------
Total Commercial Paper
(Identified cost $996,536).............................. 996,536
- ------------------------------------------------------------------------
Short-Term Government Securities -- 4.72%
- ---------------------------------------------------------------------------
Federal National Mortgage Association
Discount Note, 4.77% due 07/07/99 ...... 500,000 499,602
Federal National Mortgage Association
Discount Note, 4.83% due 07/19/99 ...... 500,000 498,793
-----------
Total Short-Term Government Securities
(Identified cost $998,395).............................. 998,395
- ------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Repurchase Agreement -- 2.81%
- ---------------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement, 4.25% due 07/01/99
Collateral: U.S. Treasury Bond
$640,000, 3.625% due 04/15/28
Value $614,033 ......................... $595,000 $ 595,000
-----------
Total Repurchase Agreement
(Identified cost $595,000)................................... 595,000
- ---------------------------------------------------------------------------
Total Investments
(Identified cost $19,232,333)............................... $21,508,031
Other Assets Less Liabilities -- (1.66)% ................. (351,789)
-----------
Net Assets -- 100% ........................................ $21,156,242
- ---------------------------------------------------------------------------
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipt.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
8
<PAGE>
Enterprise Growth and Income Fund
Retirement System Investors Inc.
New York, New York
Investment Management
Retirement System Investors Inc. ("RSI") has served as Fund Manager to the
Enterprise Growth and Income Fund since 1991. RSI manages approximately $729
million for all of its clients.
Investment Objective
The objective of the Enterprise Growth and Income Fund is a total return through
capital appreciation with income as a secondary consideration.
Investment Strategies
The Growth and Income Fund invests primarily in U.S. common stocks of large
capitalization companies. The Fund selects stocks that will appreciate in value,
seeking to take advantage of temporary stock price inefficiencies, which may be
caused by market participants focusing heavily on short-term developments. In
selecting stocks for the Fund, the Fund Manager employs a "value-oriented"
strategy. This means that the Fund Manager attempts to identify stocks of
companies that have greater value than is recognized by the market. The Fund
Manager considers a number of factors, such as sales, growth and profitability
prospects for the economic sector and markets in which the company operates and
sells its products and services, the company's stock market price, earnings
level and projected earnings growth rate. The Fund Manager also considers
current and projected dividend yields. The Fund Manager compares this
information to that of other companies in determining relative value and
dividend potential.
First Half 1999 Performance Review
For the six months ended June 30, 1999, the Fund's overweightings in high
performance groups such as technology, basic materials and capital goods sectors
and underweightings in sub-par groups such as consumer staples, healthcare and
utilities helped results. The standout performers were Safeguard Scientifics (up
130 percent), Tellabs (up 97 percent), Tiffany (up 86 percent), Nortel Networks
(up 74 percent), Alcoa (up 67 percent). The biggest disappointments were Cadence
Design Systems, Philip Morris, Potash, Sterling Commerce, Lockheed Martin,
Fannie Mae and Washington Mutual.
Future Investment Strategy
RSI visualizes a pickup in earnings growth -- led by productivity gains,
improving profit margins and recovery in foreign economies -- in the latter half
of 1999 with the domestic economy continuing to grow at a satisfactory pace.
However, higher interest rates could constrain market valuations and upset the
economy, and Y2K liquidity concerns could raise volatility levels.
Regarding stock selection, RSI expects significant variances of individual
returns within sectors following the rotational shift out of a narrow group of
growth stocks into a broader group of economically sensitive and other value
stocks, which began in mid-April.
An important strategy for RSI is keeping to discipline, focusing on relative
value regardless of the sector. RSI will be opportunistic with respect to
seeking out bargains in both growth and value stocks consistent with the current
mix of existing holdings. This is within the context of expecting more value
stocks to surface as attractive, assuming earnings growth accelerates.
Conversely, RSI will be more agnostic about growth issues, given the risk that
their valuations may become compressed by higher interest rates and the
emergence of more competitive earnings opportunities elsewhere.
The views expressed in this report reflect those of the Fund Manager only
through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
THE ENTERPRISE Group of Funds, Inc.
9
<PAGE>
ENTERPRISE GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 89.27%
- ------------------------------------------------------------------------
Aerospace -- 3.11%
- ------------------------------------------------------------------------
AlliedSignal Inc. ......................... 45,900 $ 2,891,700
Lockheed Martin Corporation ............... 10,100 376,225
-----------
3,267,925
Banking -- 1.26%
- ------------------------------------------------------------------------
Bank of America Corporation ............... 5,884 431,371
Chase Manhattan Corporation ............... 10,352 896,742
-----------
1,328,113
Broadcasting -- 1.64%
- ------------------------------------------------------------------------
Time Warner Inc. .......................... 23,450 1,723,575
Building & Construction -- 6.45%
- ------------------------------------------------------------------------
Armstrong World Industries Inc. ........... 20,600 1,190,938
Martin Marietta Materials Inc. ............ 13,400 790,600
Southdown Inc. ............................ 74,622 4,794,463
-----------
6,776,001
Chemicals -- 0.81%
- ------------------------------------------------------------------------
Du Pont (E. I.) De Nemours &
Company ................................. 12,400 847,075
Computer Hardware -- 18.50%
- ------------------------------------------------------------------------
Cisco Systems Inc. (a) .................... 12,200 786,900
Dallas Semiconductor Corporation .......... 76,230 3,849,615
EMC Corporation (a) ....................... 93,200 5,126,000
Hewlett-Packard Company ................... 6,100 613,050
IBM ....................................... 44,320 5,728,360
Intel Corporation ......................... 23,400 1,392,300
Xerox Corporation ......................... 32,900 1,943,156
-----------
19,439,381
Computer Services -- 1.68%
- ------------------------------------------------------------------------
Comverse Technology Inc. (a) .............. 675 50,962
Safeguard Scientifics Inc. ................ 27,500 1,705,000
Sun Microsystems Inc. (a) ................. 100 6,888
-----------
1,762,850
Computer Software -- 6.63%
- ------------------------------------------------------------------------
BMC Software Inc. (a) ..................... 72,075 3,892,050
Cadence Design Systems Inc. (a) ........... 39,600 504,900
Computer Associates International Inc. 4,650 255,750
Sterling Commerce Inc. (a) ................ 63,400 2,314,100
-----------
6,966,800
Consumer Products -- 1.19%
- ------------------------------------------------------------------------
Honeywell Inc. ............................ 1,000 115,875
Kimberly Clark Corporation ................ 4,200 239,400
Mattel Inc. ............................... 33,960 897,817
-----------
1,253,092
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Crude & Petroleum -- 3.61%
- ------------------------------------------------------------------------
BP Amoco (ADR) ............................ 9,260 $ 1,004,710
Exxon Corporation ......................... 8,100 624,712
Mobil Corporation ......................... 10,350 1,024,650
Royal Dutch Petroleum (ADR) ............... 5,875 353,969
Texaco Inc. ............................... 12,500 781,250
-----------
3,789,291
Electrical Equipment -- 4.92%
- ------------------------------------------------------------------------
Emerson Electric Company .................. 69,250 4,354,094
General Electric Company .................. 7,200 813,600
-----------
5,167,694
Electronics -- 0.45%
- ------------------------------------------------------------------------
Pmc Sierra Inc. ........................... 8,000 471,500
Entertainment & Leisure -- 0.16%
- ------------------------------------------------------------------------
Callaway Golf Company ..................... 11,400 166,725
Finance -- 1.65%
- ------------------------------------------------------------------------
Citigroup Inc. ............................ 33,750 1,603,125
Merrill Lynch & Company Inc. .............. 1,700 135,894
-----------
1,739,019
Food & Beverages & Tobacco -- 1.04%
- ------------------------------------------------------------------------
Dole Food Inc. ............................ 12,600 370,125
Philip Morris Companies Inc. .............. 18,080 726,590
-----------
1,096,715
Life Insurance -- 0.08%
- ------------------------------------------------------------------------
American General Corporation .............. 1,100 82,913
Machinery -- 6.07%
- ------------------------------------------------------------------------
Deere & Company ........................... 13,000 515,125
Ingersoll Rand Company .................... 59,200 3,825,800
Snap-On Inc. .............................. 56,400 2,040,975
-----------
6,381,900
Manufacturing -- 0.31%
- ------------------------------------------------------------------------
Corning Incorporated ...................... 100 7,013
Milacron Inc. ............................. 17,200 318,200
-----------
325,213
Metals & Mining -- 2.96%
- ------------------------------------------------------------------------
Alcoa Inc. ................................ 40,700 2,518,312
Potash Corporation Saskatchewan Inc. 11,500 595,125
-----------
3,113,437
Multi-Line Insurance -- 1.68%
- ------------------------------------------------------------------------
American International Group Inc. ......... 15,071 1,764,249
Oil Services -- 1.05%
- ------------------------------------------------------------------------
Halliburton Company ....................... 9,100 411,775
Schlumberger Ltd. ......................... 10,800 687,825
-----------
1,099,600
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
10
<PAGE>
ENTERPRISE GROWTH AND INCOME FUND --(Continued)
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Property-Casualty Insurance -- 0.47%
- -------------------------------------------------------------------------
Allstate Corporation ..................... 13,700 $ 491,488
Pharmaceuticals -- 3.91%
- -------------------------------------------------------------------------
Bristol Myers Squibb Company ............. 26,010 1,832,079
Elan Corporation (ADR) (a) ............... 20,000 555,000
Johnson & Johnson ........................ 6,800 666,400
Merck & Company Inc. ..................... 5,710 422,540
Pfizer Inc. .............................. 5,800 636,550
------------
4,112,569
Retail -- 5.96%
- -------------------------------------------------------------------------
CVS Corporation .......................... 30,200 1,532,650
Federated Department Stores Inc. (a) ..... 21,200 1,122,275
Safeway Inc. (a) ......................... 26,900 1,331,550
Tiffany & Company ........................ 23,550 2,272,575
------------
6,259,050
Savings and Loan -- 4.08%
- -------------------------------------------------------------------------
Federal National Mortgage Association 32,550 2,225,606
Washington Mutual Inc. ................... 58,400 2,065,900
------------
4,291,506
Telecommunications -- 7.40%
- -------------------------------------------------------------------------
GTE Corporation .......................... 7,700 583,275
Lucent Technologies Inc. ................. 23,816 1,606,092
Nortel Networks Corp ..................... 52,830 4,586,304
Tellabs Inc. (a) ......................... 14,800 999,925
------------
7,775,596
Transportation -- 2.20%
- -------------------------------------------------------------------------
FDX Corporation (a) ...................... 42,550 2,308,337
------------
Total Common Stocks
(Identified cost $67,798,266)......................... 93,801,614
- ----------------------------------------------------------------------
Convertible Preferred Stocks -- 0.59%
- -------------------------------------------------------------------------
Misc. Financial Services -- 0.59%
- -------------------------------------------------------------------------
Kmart Financing .......................... 10,500 614,250
------------
Total Convertible Preferred Stocks
(Identified cost $635,930)............................ 614,250
- ----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Commercial Paper -- 9.61%
- -------------------------------------------------------------------------
Alabama Power Company,
5.30% due 07/09/99 ..................... $2,100,000 $ 2,097,527
Avnet Incorporated,
5.80% due 07/01/99 ..................... 4,000,000 4,000,000
General Electric Capital
Corporation, 5.08% due 07/06/99 ........ 2,000,000 1,998,589
Mobil Corporation,
5.12% due 07/07/99 ..................... 2,000,000 1,998,293
------------
Total Commercial Paper
(Identified cost $10,094,409)............................ 10,094,409
- -------------------------------------------------------------------------
Repurchase Agreement -- 0.55%
- -------------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement, 4.25% due 07/01/99
Collateral: U.S. Treasury Bond
$625,000, 3.625% due 04/15/28
Value $616,045 ......................... 580,000 580,000
------------
Total Repurchase Agreement
(Identified cost $580,000)................................ 580,000
- -------------------------------------------------------------------------
Total Investments
(Identified cost $79,108,605)........................... $105,090,273
Other Assets Less Liabilities -- (0.02)% ............... (18,655)
------------
Net Assets -- 100% .......................................$105,071,618
- -------------------------------------------------------------------------
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipt.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
11
<PAGE>
Enterprise Equity Income Fund
1740 Advisers, Inc.
New York, New York
Investment Management
1740 Advisers has been Fund Manager to the Enterprise Equity Income Fund since
its inception. 1740 Advisers manages more than $2 billion for institutional
clients and its normal investment minimum is $20 million.
Investment Objective
The objective of the Enterprise Equity Income Fund is to seek a combination of
growth and income to achieve an above-average and consistent total return.
Investment Strategies
The Equity Income Fund invests primarily in dividend-paying U.S. common stocks.
The goal is capital appreciation combined with a high level of current income.
Dividend yield relative to the S&P 500 average is used as a discipline and
measure of value in selecting stocks for the Fund. To qualify for a purchase, a
stock's yield must be greater than the S&P 500's average dividend yield. The
stock must be sold within two quarters after its dividend yield falls below that
of the S&P average. The effect of this discipline is that a stock will be sold
if increases in its annual dividends do not keep pace with increases in its
market price.
First Half 1999 Performance Review
When the financial crisis hit world markets last year, investors responded by
moving into the biggest and best companies. The expectation was that in a
hostile and uncertain world the safest place to be was in the most financially
secure, most broadly diversified and highest growth stocks. As money poured in,
those stocks rose at the expense of the rest of the market; and the popular
averages, which were dominated by the large-cap growth names, outperformed
everything else.
Now with the world on the mend and the outlook for corporate profits improving,
the market has begun to broaden. During the second quarter, this has resulted in
an increased investor interest in economy-sensitive stocks and in mid-cap and
some smaller-cap names. Many of these stocks went through their own bear market
last year, declining while the popular averages rose. This year may see the
reverse of the past several years' pattern -- the large-cap dominated averages
underperform the average stock.
Future Investment Strategy
The Equity Income Fund has a substantial emphasis on the economy-sensitive
sectors. Cyclicals such as basic materials, capital spending related and energy
stocks represent value. They are relatively underowned, went through bear market
size declines last year and may experience an improving earnings outlook. They
suffered the most from the crisis and may benefit the most from the ending of
the crisis and the beginning of economic and financial recovery.
The views expressed in this report reflect those of the Fund Manager only
through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
THE ENTERPRISE Group of Funds, Inc.
12
<PAGE>
ENTERPRISE EQUITY INCOME FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 97.89%
- -----------------------------------------------------------------------
Aerospace -- 2.55%
- -----------------------------------------------------------------------
Northrop Grumman Corporation ............. 25,000 $ 1,657,812
United Technologies Corporation .......... 40,000 2,867,500
-----------
4,525,312
Automotive -- 2.35%
- -----------------------------------------------------------------------
Delphi Automotive Systems Corp. .......... 15,000 278,438
Ford Motor Company ....................... 40,000 2,257,500
General Motors Corporation ............... 25,000 1,650,000
-----------
4,185,938
Banking -- 9.29%
- -----------------------------------------------------------------------
Bank of America Corporation .............. 33,000 2,419,312
Bank of New York Company Inc. ............ 50,000 1,834,375
BankBoston Corporation ................... 40,000 2,045,000
Chase Manhattan Corporation .............. 30,000 2,598,750
Fleet Financial Group Inc. ............... 35,000 1,553,125
J.P. Morgan & Company Inc. ............... 18,000 2,529,000
Mellon Bank Corporation .................. 50,000 1,818,750
Wells Fargo & Company .................... 40,000 1,710,000
-----------
16,508,312
Chemicals -- 3.42%
- -----------------------------------------------------------------------
Dow Chemical Company ..................... 20,000 2,537,500
Du Pont (E. I.) De Nemours &
Company ................................ 33,000 2,254,312
Rohm & Haas Company ...................... 30,000 1,286,250
-----------
6,078,062
Communications -- 1.06%
- -----------------------------------------------------------------------
Frontier Corporation ..................... 32,000 1,888,000
Computer Hardware -- 1.83%
- -----------------------------------------------------------------------
Xerox Corporation ........................ 55,000 3,248,438
Conglomerates -- 2.14%
- -----------------------------------------------------------------------
Minnesota Mining & Manufacturing
Company ................................ 20,000 1,738,750
Textron Inc. ............................. 25,000 2,057,813
-----------
3,796,563
Consumer Durables -- 0.91%
- -----------------------------------------------------------------------
Dana Corporation ......................... 35,000 1,612,188
Consumer Non-Durables -- 2.03%
- -----------------------------------------------------------------------
Avon Products Inc. ....................... 65,000 3,607,500
Consumer Products -- 2.41%
- -----------------------------------------------------------------------
Colgate Palmolive Company ................ 20,000 1,975,000
Honeywell Inc. ........................... 20,000 2,317,500
-----------
4,292,500
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Crude & Petroleum -- 6.38%
- -----------------------------------------------------------------------
BP Amoco (ADR) ........................... 22,000 $ 2,387,000
Chevron Corporation ...................... 20,000 1,903,750
Exxon Corporation ........................ 35,000 2,699,375
Mobil Corporation ........................ 25,000 2,475,000
Texaco Inc. .............................. 30,000 1,875,000
-----------
11,340,125
Electrical Equipment -- 4.42%
- -----------------------------------------------------------------------
Emerson Electric Company ................. 35,000 2,200,625
General Electric Company ................. 50,000 5,650,000
-----------
7,850,625
Energy -- 7.73%
- -----------------------------------------------------------------------
Atlantic Richfield Company ............... 18,000 1,504,125
Consolidated Natural Gas Company ......... 35,000 2,126,250
Duke Energy Company ...................... 35,000 1,903,125
El Paso Energy Corporation ............... 55,000 1,935,312
Enron Corporation ........................ 35,000 2,861,250
Williams Companies Inc. .................. 80,000 3,405,000
-----------
13,735,062
Food & Beverages & Tobacco -- 0.68%
- -----------------------------------------------------------------------
Philip Morris Companies Inc. ............. 30,000 1,205,625
Insurance -- 1.50%
- -----------------------------------------------------------------------
Cigna Corporation ........................ 30,000 2,670,000
Machinery -- 3.91%
- -----------------------------------------------------------------------
Caterpillar Inc. ......................... 38,000 2,280,000
Deere & Company .......................... 45,000 1,783,125
Pitney Bowes Inc. ........................ 45,000 2,891,250
-----------
6,954,375
Manufacturing -- 2.63%
- -----------------------------------------------------------------------
Eaton Corporation ........................ 20,000 1,840,000
Tyco International Ltd. .................. 30,000 2,842,500
-----------
4,682,500
Metals & Mining -- 1.04%
- -----------------------------------------------------------------------
Alcoa Inc. ............................... 30,000 1,856,250
Misc. Financial Services -- 1.60%
- -----------------------------------------------------------------------
Citigroup Inc. ........................... 60,000 2,850,000
Multi-Line Insurance -- 1.47%
- -----------------------------------------------------------------------
Lincoln National Corporation ............. 50,000 2,615,625
Oil Services -- 3.74%
- -----------------------------------------------------------------------
Baker Hughes Inc. ........................ 45,000 1,507,500
Diamond Offshore Drilling Inc. ........... 50,000 1,418,750
Halliburton Company ...................... 40,000 1,810,000
Schlumberger Ltd. ........................ 30,000 1,910,625
-----------
6,646,875
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
13
<PAGE>
ENTERPRISE EQUITY INCOME FUND --(Continued)
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Property-Casualty Insurance -- 0.98%
- -------------------------------------------------------------------------
Chubb Corporation ........................ 25,000 $ 1,737,500
Paper & Forest Products -- 5.44%
- -------------------------------------------------------------------------
Bowater Inc. ............................. 35,000 1,653,750
Georgia Pacific Corporation .............. 56,000 2,653,000
International Paper Company .............. 75,000 3,787,500
Temple-Inland Inc. ....................... 23,000 1,569,750
------------
9,664,000
Pharmaceuticals -- 7.32%
- -------------------------------------------------------------------------
American Home Products Corporation 40,000 2,300,000
Baxter International Inc. ................ 30,000 1,818,750
Bristol Myers Squibb Company ............. 30,000 2,113,125
Lilly (Eli) & Company .................... 6,000 429,750
Merck & Company Inc. ..................... 25,000 1,850,000
Pharmacia & Upjohn Inc. .................. 38,000 2,158,875
Smithkline Beecham (ADR) ................. 25,000 1,651,562
Warner-Lambert Company ................... 10,000 693,750
------------
13,015,812
Printing & Publishing -- 1.37%
- -------------------------------------------------------------------------
McGraw Hill Inc. ......................... 45,000 2,427,188
Raw Materials -- 2.52%
- -------------------------------------------------------------------------
Phelps Dodge Corporation ................. 20,000 1,238,750
Reynolds Metals Company .................. 20,000 1,180,000
Weyerhaeuser Company ..................... 30,000 2,062,500
------------
4,481,250
Real Estate -- 2.50%
- -------------------------------------------------------------------------
Avalon Bay Communities Inc. .............. 15,000 555,000
Boston Properties Inc. ................... 25,000 896,875
Crescent Real Estate Equities ............ 45,000 1,068,750
Equity Office Properties Trust ........... 40,000 1,025,000
Equity Residential Properties Trust ...... 20,000 901,250
------------
4,446,875
Savings and Loan -- 0.96%
- -------------------------------------------------------------------------
Federal National Mortgage
Association ............................ 25,000 1,709,375
Technology -- 0.53%
- -------------------------------------------------------------------------
Thomas & Betts Corporation ............... 20,000 945,000
Telecommunications -- 10.35%
- -------------------------------------------------------------------------
Ameritech Corporation .................... 35,000 2,572,500
AT&T Corporation ......................... 50,000 2,790,625
Bell Atlantic Corporation ................ 35,000 2,288,125
BellSouth Corporation .................... 48,000 2,250,000
GTE Corporation .......................... 28,000 2,121,000
SBC Communications Inc. .................. 43,000 2,494,000
Sprint Corporation ....................... 40,000 2,112,500
U S West Inc. ............................ 30,000 1,762,500
------------
18,391,250
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Utilities -- 2.83%
- -------------------------------------------------------------------------
Carolina Power & Light Company ........... 25,000 $ 1,070,312
CMS Energy Corporation ................... 30,000 1,256,250
Edison International ..................... 50,000 1,337,500
FPL Group Inc. ........................... 25,000 1,365,625
------------
5,029,687
------------
Total Common Stocks
(Identified cost $122,871,176 ).......................... 173,997,812
- -------------------------------------------------------------------------
Commercial Paper -- 1.46%
- -------------------------------------------------------------------------
CIT Group Holdings Inc. 4.84% due
07/13/99 ............................... $1,200,000 1,198,064
General Electric Capital Corporation,
4.81% due 07/08/99 ..................... 200,000 199,813
General Motors Acceptance
Corporation, 5.01% due 07/22/99 ........ 200,000 199,416
Sears Roebuck Acceptance
Corporation, 5.03% due 07/23/99 ........ 1,000,000 996,926
------------
Total Commercial Paper
(Identified cost $2,594,219).............................. 2,594,219
- -------------------------------------------------------------------------
Short-Term Government Securities -- 0.17%
- -------------------------------------------------------------------------
Federal Home Loan Mortgage
Discount Notes, 4.68% due 07/12/99 300,000 299,571
------------
Total Short-Term Government Securities
(Identified cost $299,571)................................ 299,571
- -------------------------------------------------------------------------
Repurchase Agreement -- 0.20%
- -------------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement, 4.25% due 07/01/99
Collateral: U.S. Treasury Note
$365,000, 6.125% due 07/31/00,
Value $385,927 ......................... 365,000 365,000
------------
Total Repurchase Agreement
(Identified cost $365,000).............................. 365,000
- -------------------------------------------------------------------------
Total Investments
(Identified cost $126,129,966).......................... $177,256,602
Other Assets Less Liabilities -- 0.28% ................. 497,201
------------
Net Assets -- 100% ...................................... $177,753,803
- -------------------------------------------------------------------------
</TABLE>
(ADR) American Depository Receipt.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
14
<PAGE>
Enterprise Capital Appreciation Fund
Provident Investment Counsel, Inc.
Pasadena, California
Investment Management
Provident Investment Counsel has been Fund Manager to the Enterprise Capital
Appreciation Fund since inception. Provident Investment Counsel manages
approximately $18 billion for institutional clients, and its usual investment
minimum is $5 million.
Investment Objective
The objective of the Enterprise Capital Appreciation Fund is to seek maximum
capital appreciation.
Investment Strategies
The Capital Appreciation Fund invests in U.S. common stocks of companies that
demonstrate accelerating earnings momentum and consistently strong financial
characteristics. The Fund Manager's criteria for stock selection include: (a)
steadily increasing earnings; and (b) a three-year performance record of sales,
earnings, dividend growth, pretax margins, return on equity and reinvestment
rate which, in the aggregate, average 1.5 times the average performance of the
S&P 500 for the same period. The Fund Manager selects stocks of small, medium
and large capitalization companies in an attempt to achieve an average
capitalization of portfolio companies that is less than the average
capitalization of the S&P 500. The potential for maximum capital appreciation is
the basis for investment decisions; any income is incidental.
First Half 1999 Performance Review
A backdrop of vigorous economic growth and a nervous bond market caused
tremendous volatility in stock market sectors year-to-date. Thirty-year bond
yields increased from 5.12 percent at the end of December, 1998 to 6.14 percent
near the close of June, 1999. This rise punished the prices of high-PE stocks of
companies offering consistent earnings growth. Overall, the year thus far has
been positive for the growth averages, but less so than the extraordinary gains
of 1998.
The year (as measured by the Russell 1000 Growth Index) began on a relatively
good note but turned flat in April, took a fairly significant dip during May and
rebounded strongly in June. The Fund participated in the June recovery, which
was a reflection of growth stocks regaining their momentum after being badly
disadvantaged during April and May with rising interest rates and a market
rotation into cyclical stocks. The rotation was caused by the perception that
stronger than expected economic growth would, in turn, generate better earnings
growth for the economically sensitive stocks.
Future Investment Strategy
The shift favoring cyclical/value stocks, which began in April and continued
through May and early June, has abated. The key question is what trends in place
today will most affect returns for the balance of the year? First, one of the
most positive signs has been the broadening out of the market. For the first
time in years, asset class returns in the quarter were in keeping with
traditional risk/reward models, (i.e., the more risk you are willing to assume,
the higher the returns would be). In the second quarter, small-cap stocks (up
14.8 percent) outperformed mid-cap stocks (up 10.4 percent), which outperformed
large-cap stocks (up 3.9 percent), as measured by the Russell 2000 Growth,
Russell Mid-Cap Growth, and the Russell 1000 Growth Indices. Also in the second
quarter, value stocks (up 10.8 percent) outperformed growth stocks (up 3.8
percent), as measured by the S&P 500 Barra Value and S&P Barra Growth Indices,
as the better than expected economic growth and rising interest rates corrected
the valuation extremes at both ends of the market. Provident believes the
April/May stellar performance for cyclically oriented stocks represents a
broadening out of the market and not a major change in style leadership.
Provident remains committed to technology and consumer-oriented themes, but the
Fund has reduced its commitment to the health technology area, particularly drug
stocks. While Provident cut back on their drug holdings earlier in the year, two
short-term obstacles nonetheless have penalized returns. The first is a drug
pipeline that is less robust than at this time last year; the second concerns
pending Medicare and Medicaid reform. On the other hand, the improved domestic
and global economic backdrop does provide certain companies new opportunities
for earnings growth. For example, Provident continues to look for new
opportunities in telecommunications, where the longer-term earnings growth
outlook of many
THE ENTERPRISE Group of Funds, Inc.
15
<PAGE>
companies may be exceptional. Finally, Provident believes the broadening of the
market increases the opportunity universe. Investors, less concerned about
liquidity, are seeking out stocks with the best relative attractiveness
regardless of market capitalization. Provident will continue to build the stock
positions in the Fund where Provident thinks valuations are particularly
attractive.
The Fund's return for the balance of the year will depend on the level of
interest rates and the companies in the Fund maintaining their expected growth
rates. If inflation remains subdued, i.e., under 3 percent, and interest rates
remain in a reasonably narrow range around current levels, then the broad market
should do well and both growth and value strategies should benefit. The
challenge to growth stocks remains any sizeable increase in interest rates;
value stocks are going to need a meaningful acceleration in earnings to maintain
recent performance momentum. Provident believes the earnings power for cyclical
companies is less than robust. They recognize, also, that investors cannot
expect any further expansion in price/earnings ratios. Therefore, their
challenge and primary focus in the management of the Fund is to be confident
that the companies in the Fund continue to produce well above average sales and
earnings growth.
The views expressed in this report reflect those of the Fund Manager only
through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
THE ENTERPRISE Group of Funds, Inc.
16
<PAGE>
ENTERPRISE CAPITAL APPRECIATION FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 97.73%
- ---------------------------------------------------------------------
Advertising -- 1.49%
- ---------------------------------------------------------------------
Outdoor Systems Inc. (a) ............... 70,000 $ 2,555,000
Banking -- 1.61%
- ---------------------------------------------------------------------
FIRSTAR Corporation .................... 98,160 2,748,480
Broadcasting -- 2.82%
- ---------------------------------------------------------------------
Clear Channel Communications (a) ....... 44,000 3,033,250
Infinity Broadcasting Corporation
(Class A) (a) ........................ 60,000 1,785,000
-----------
4,818,250
Business Services -- 2.55%
- ---------------------------------------------------------------------
Concord EFS Inc. (a) ................... 50,000 2,115,625
CSG Systems International Inc. (a) ..... 40,000 1,047,500
Paychex Inc. ........................... 37,500 1,195,312
-----------
4,358,437
Computer Hardware -- 6.69%
- ---------------------------------------------------------------------
Dell Computer Corporation (a) .......... 60,000 2,220,000
Electronics for Imaging Inc. (a) ....... 85,000 4,366,875
EMC Corporation (a) .................... 52,000 2,860,000
Lexmark International Group Inc.
(Class A) (a) ........................ 30,000 1,981,875
-----------
11,428,750
Computer Services -- 12.62%
- ---------------------------------------------------------------------
America Online Inc. (a) ................ 61,000 6,740,500
Comverse Technology Inc. (a) ........... 40,000 3,020,000
Fiserv Inc. (a) ........................ 90,000 2,818,125
Solectron Corporation (a) .............. 50,000 3,334,375
Sun Microsystems Inc. (a) .............. 25,000 1,721,875
Sungard Data Systems Inc. (a) .......... 50,000 1,725,000
Synopsys Inc. (a) ...................... 40,000 2,207,500
-----------
21,567,375
Computer Software -- 0.48%
- ---------------------------------------------------------------------
Real Networks Inc. (a) ................. 12,000 826,500
Consumer Durables -- 1.43%
- ---------------------------------------------------------------------
Harley Davidson Inc. ................... 45,000 2,446,875
Containers/Packaging -- 2.32%
- ---------------------------------------------------------------------
Ball Corporation ....................... 40,000 1,690,000
Sealed Air Corporation (New) ........... 35,000 2,270,625
-----------
3,960,625
Crude & Petroleum -- 0.88%
- ---------------------------------------------------------------------
Ensco International Inc. ............... 75,000 1,495,313
Electrical Equipment -- 1.69%
- ---------------------------------------------------------------------
Jabil Circuit Inc. (a) ................. 64,000 2,888,000
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Electronics -- 1.84%
- ---------------------------------------------------------------------
Altera Corporation (a) ................. 50,000 $ 1,840,625
Gemstar International Group Ltd. (a) ... 20,000 1,305,000
-----------
3,145,625
Energy -- 1.70%
- ---------------------------------------------------------------------
AES Corporation ........................ 50,000 2,906,250
Entertainment & Leisure -- 0.79%
- ---------------------------------------------------------------------
Carnival Corporation ................... 27,800 1,348,300
Finance -- 10.59%
- ---------------------------------------------------------------------
Associates First Capital Corporation
(Class A) ............................ 50,000 2,215,625
Capital One Financial Corporation ...... 60,000 3,341,250
MBNA Corporation ....................... 200,502 6,140,374
Metris Companies Inc. .................. 100,000 4,075,000
Providian Financial Corporation ........ 25,000 2,337,500
-----------
18,109,749
Health Care -- 2.05%
- ---------------------------------------------------------------------
Medtronic Inc. ......................... 45,004 3,504,687
Hotels & Restaurants -- 0.95%
- ---------------------------------------------------------------------
Brinker International Inc. (a) ......... 60,000 1,631,250
Life Insurance -- 0.72%
- ---------------------------------------------------------------------
Reinsurance Group America Inc. ......... 35,000 1,233,750
Manufacturing -- 4.43%
- ---------------------------------------------------------------------
Tyco International Ltd. ................ 80,000 7,580,000
Medical Instruments -- 0.90%
- ---------------------------------------------------------------------
Guidant Corporation .................... 30,000 1,543,125
Medical Services -- 1.47%
- ---------------------------------------------------------------------
Ims Health Inc. ........................ 26,000 812,500
Wellpoint Health Networks
Inc. (a) ............................. 20,000 1,697,500
-----------
2,510,000
Oil Services -- 0.98%
- ---------------------------------------------------------------------
Baker Hughes Inc. ...................... 50,000 1,675,000
Retail -- 20.22%
- ---------------------------------------------------------------------
Abercrombie and Fitch Company
(Class A) (a) ........................ 20,000 960,000
Bed Bath & Beyond Inc. (a) ............. 72,600 2,795,100
Costco Companies Inc. (a) .............. 55,000 4,403,437
CVS Corporation ........................ 35,000 1,776,250
Dollar Tree Stores Inc. (a) ............ 57,450 2,527,800
Family Dollar Stores Inc. .............. 70,000 1,680,000
Kohl's Corporation (a) ................. 70,000 5,403,125
Linens 'n Things Inc. (a) .............. 40,000 1,750,000
Office Depot Inc. (a) .................. 64,500 1,423,031
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
17
<PAGE>
ENTERPRISE CAPITAL APPRECIATION FUND --(Continued)
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Safeway Inc. (a) ......................... 65,000 $ 3,217,500
Staples Inc. (a) ......................... 90,037 2,785,520
Tiffany & Company ........................ 37,800 3,647,700
Tommy Hilfiger Corporation (a) ........... 30,000 2,205,000
------------
34,574,463
Technology -- 3.52%
- -------------------------------------------------------------------------
Linear Technology Corporation ............ 25,000 1,681,250
Network Appliance Inc. (a) ............... 30,000 1,676,250
Waters Corporation (a) ................... 50,000 2,656,250
------------
6,013,750
Telecommunications -- 11.89%
- -------------------------------------------------------------------------
Alltel Corporation ....................... 20,000 1,430,000
Amdocs Ltd. (a) .......................... 100,000 2,275,000
Global TeleSystems Group Inc. (a) ........ 30,000 2,430,000
Lucent Technologies Inc. ................. 66,000 4,450,875
MCI Worldcom Inc. (a) .................... 70,000 6,024,375
Motorola Inc. ............................ 700 66,325
Tellabs Inc. (a) ......................... 54,000 3,648,375
------------
20,324,950
Waste Management -- 1.10%
- -------------------------------------------------------------------------
Waste Management Inc. .................... 35,000 1,881,250
------------
Total Common Stocks
(Identified cost $107,810,113)........................ 167,075,754
- ----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Commercial Paper -- 2.69%
- -------------------------------------------------------------------------
Household Finance Corporation 5.55%
due 07/01/99 ........................... $4,600,000 $ 4,600,000
------------
Total Commercial Paper
(Identified cost $4,600,000)............................ 4,600,000
- -------------------------------------------------------------------------
Total Investments
(Identified cost $112,410,113).......................... $171,675,754
Other Assets Less Liabilities -- (0.42)% ............... (716,828)
------------
Net Assets -- 100% ..................................... $170,958,926
- -------------------------------------------------------------------------
</TABLE>
(a) Non-income producing security.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
18
<PAGE>
Enterprise Small Company Growth Fund
William D. Witter, Inc.
New York, New York
Investment Management
William D. Witter, Inc., which has approximately $1 billion in assets under
management, became manager of the Fund on September 2, 1998. William D. Witter's
normal investment minimum for a separate account is $1 million.
Investment Objective
The objective of the Enterprise Small Company Growth Fund is to seek capital
appreciation.
Investment Strategies
The Small Company Growth Fund invests primarily in common stocks of small
capitalization companies with above-average growth characteristics that are
reasonably valued. The Fund Manager uses a disciplined approach in evaluating
growth companies. It relates the expected growth rate in earnings to the
price-earnings ratio of the stock. Generally, the Fund Manager will not buy a
stock if its price-earnings ratio exceeds its growth rate. By using this
valuation parameter, the Fund Manager believes it moderates some of the inherent
volatility in the small capitalization sector of the market. Securities will be
sold when the Fund Manager believes the stock price exceeds the valuation
criteria, or when the stock appreciates to a point where it is substantially
over-weighted in the Fund, or when the company no longer meets expectations. The
Fund Manager's goal is to hold a stock for a minimum of one year but this may
not always be feasible and there may be times when short-term gains or losses
will be realized.
First Half 1999 Performance Review
Concerns about the slowdown in global economic growth, which intensified in the
summer of 1998, were still present in the first quarter of 1999. Investors
responded, in part, by continuing to concentrate their equity investments into
large, well-known, highly liquid issues. In the second quarter, as confidence
developed that an economic recovery in Asia was beginning, the willingness to
participate in the broader market increased.
The dramatic rise in the prices of Internet stocks in the first part of the year
led to a substantial increase in initial public offerings of Internet-related
companies. By the second quarter, the demand for this type of investment
appeared to be satiated by supply. The extremely high valuation levels of the
group were also a factor in encouraging investors to look elsewhere for
opportunities.
While a number of observers have pointed out the historically low relative
valuations of small companies, in the second quarter an awareness developed of
the increase in investment banking activities in this group. By early April, the
number of mergers, acquisitions, and leveraged buyouts totaled 207, which
compared with an annual average of 162 for this decade, according to Merrill
Lynch Small Cap Research. This development is reminiscent of the 1980's when it
was more economical for companies to expand by buying another company's stock
than by building new facilities and expanding their own organizations.
The Fund benefited from the announcement of two investment banking transactions.
Amsted Industries offered to buy Varlen Corp. at $35. Varlen's stock had been
selling in the low-to mid-twenties prior to the announcement and its management
stated that the offer was inadequate. Additional negotiations are proceeding and
Varlen was at $40 1/2 at June 30, 1999. Maxxim Medical's management, frustrated
by their equity's price being $16 in spite of good fundamental progress, offered
to buy the whole company themselves at $26. The stock finished the six months
ended June 30, 1999 at $23 5/16.
Future Investment Strategy
The rise in long-term interest rates during the first six months, particularly
those related to the housing industry, may slow down the economy's growth rate.
This factor together with the strong currency may keep the inflation rate at
around 2 percent or lower. While valuation levels of large capitalization
issues, in general, are high, the price/earnings ratios relative to earnings
growth rates of the smaller company equities are still low. Witter believes that
the sector should do well over the next one to three years.
THE ENTERPRISE Group of Funds, Inc.
19
<PAGE>
Accordingly, the Fund will continue to be fully invested and maintain
significant emphasis on cyclical growth companies such as those in the
semi-conductor equipment industry. It is also likely that more secular growth
issues such as those in the computer systems/software, health care, and business
services will be added.
The views expressed in this report reflect those of the Fund Manager only
through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
THE ENTERPRISE Group of Funds, Inc.
20
<PAGE>
ENTERPRISE SMALL COMPANY GROWTH FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 93.34%
- ------------------------------------------------------------------------
Aerospace -- 2.59%
- ------------------------------------------------------------------------
AAR Corporation ........................... 16,000 $ 363,000
Tristar Aerospace Company (a) ............. 63,000 519,750
-----------
882,750
Business Services -- 13.14%
- ------------------------------------------------------------------------
Analytical Surveys Inc. (a) ............... 31,000 771,125
Charles River Associates Inc. (a) ......... 25,000 626,563
Labor Ready Inc. (a) ...................... 48,500 1,576,250
Maximus Inc. (a) .......................... 29,750 855,312
On Assignment Inc. (a) .................... 25,000 653,125
-----------
4,482,375
Computer Hardware -- 3.06%
- ------------------------------------------------------------------------
Auspex Systems Inc. (a) ................... 96,000 1,044,000
Computer Services -- 5.92%
- ------------------------------------------------------------------------
Kronos Inc. (a) ........................... 25,800 1,173,900
National Computer Systems Inc. ............ 25,000 843,750
-----------
2,017,650
Computer Software -- 13.94%
- ------------------------------------------------------------------------
Legato Systems Inc. (a) ................... 21,500 1,241,625
Mapinfo Corporation (a) ................... 34,600 657,400
Pervasive Software Inc. (a) ............... 80,000 1,990,000
Verity Inc. (a) ........................... 16,000 867,000
-----------
4,756,025
Electronics -- 10.82%
- ------------------------------------------------------------------------
Applied Science & Technology Inc. (a) ..... 79,000 1,777,500
Cymer Inc. (a) ............................ 50,000 1,250,000
Veeco Instruments Inc. (a) ................ 19,500 663,000
-----------
3,690,500
Finance -- 1.87%
- ------------------------------------------------------------------------
Doral Financial Corporation ............... 37,000 638,250
Insurance -- 1.43%
- ------------------------------------------------------------------------
Everest Reinsurance Holdings Inc. ......... 15,000 489,375
Manufacturing -- 6.60%
- ------------------------------------------------------------------------
Astropower Inc. (a) ....................... 43,800 766,500
Mueller Industries Inc. (a) ............... 25,000 848,437
Varlen Corporation ........................ 15,750 637,875
-----------
2,252,812
Medical Instruments -- 6.22%
- ------------------------------------------------------------------------
Candela Corporation (a) ................... 72,500 1,033,125
Cytyc Corporation (a) ..................... 41,600 811,200
Theragenics Corporation (a) ............... 40,000 277,500
-----------
2,121,825
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Medical Services -- 3.31%
- ------------------------------------------------------------------------
Maxxim Medical Inc. (a) ................... 48,500 $ 1,130,656
Oil Services -- 1.10%
- ------------------------------------------------------------------------
Atwood Oceanics Inc. (a) .................. 12,000 375,000
Security & Investigation Services -- 2.39%
- ------------------------------------------------------------------------
Barringer Technologies Inc. (a) ........... 126,100 815,709
Technology -- 4.39%
- ------------------------------------------------------------------------
Catalytica Inc. (a) ....................... 51,250 717,500
Flir Systems Inc. (a) ..................... 51,500 778,938
-----------
1,496,438
Transportation -- 14.26%
- ------------------------------------------------------------------------
Alaska Air Group Inc. (a) ................. 23,000 960,250
Amtran Inc. (a) ........................... 24,000 591,000
Atlas Air Inc. (a) ........................ 32,000 1,032,000
Ryanair Holdings (ADR) (a) ................ 18,000 954,000
Sea Containers Ltd. (Class A) ............. 39,500 1,325,719
-----------
4,862,969
Travel/Entertainment/Leisure -- 2.30%
- ------------------------------------------------------------------------
Polaris Industries Inc. ................... 18,000 783,000
-----------
Total Common Stocks
(Identified cost $23,133,286)............................ 31,839,334
- ------------------------------------------------------------------------
Commercial Paper -- 4.09%
- ------------------------------------------------------------------------
Baxter International Inc. 5.85% due
07/01/99 ................................ $1,396,000 1,396,000
-----------
Total Commercial Paper
(Identified cost $1,396,000)............................. 1,396,000
- ------------------------------------------------------------------------
Total Investments
(Identified cost $24,529,286)............................. $33,235,334
Other Assets Less Liabilities -- 2.57% .................. 875,242
-----------
Net Assets -- 100% ....................................... $34,110,576
- ------------------------------------------------------------------------
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipt.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
21
<PAGE>
Enterprise Small Company Value Fund
Gabelli Asset Management Company
Rye, New York
Investment Management
Gabelli Asset Management Company, which manages approximately $9 billion for
institutional clients and whose normal investment minimum is $1 million became
manager of the Fund on July 1, 1996.
Investment Objective
The objective of the Enterprise Small Company Value Fund is to seek maximum
capital appreciation.
Investment Strategies
The Small Company Value Fund invests primarily in common stocks of small
capitalization companies that the Fund Manager believes are undervalued -- that
is, the stock's market price does not fully reflect the company's value. The
Fund Manager uses a proprietary research technique to determine which stocks
have a market price that is less than the "private market value" or what an
investor would pay for the company. The Fund Manager then determines whether
there is an emerging valuation catalyst that will focus investor attention on
the underlying assets of the company and increase the market price. Smaller
companies may be subject to a valuation catalyst such as increased investor
attention, takeover efforts or a change in management.
First Half 1999 Performance Review
The first six months of 1999 was a study in the psychology of small cap
investors. While the first quarter tested their patience, the second quarter
rewarded it.
The level of merger and acquisition activity that Gabelli saw during 1998
continued unabated into 1999. The Fund's returns were enhanced by the takeover
of several holdings: Aeroquip Vickers, Hudson General, Calmat and Grand Casinos,
to name just a few. Going forward, Gabelli expects the deal activity to
accelerate as companies of all sizes race to acquire the much cheaper and
undervalued smaller sized companies.
Cable stocks contributed very nicely to the performance for the first six months
of the year. The industry has been involved in round after round of
consolidation as companies race to acquire more households, eyeballs and
bandwidth. Due to this consolidation the stocks of cable companies which have
not yet been taken over have performed well during 1999. Rogers Communications
(up 82 percent) and Cablevision (up 39 percent) have been rumored to be the next
to go.
The telecommunications industry and more specifically the cellular industry have
been extremely hot during 1999. Omnipoint has increased 139 percent in the Fund
for the first half of 1999 as it received a cash and stock offer from
VoiceStream Wireless. As a result of this, the stocks of several cellular
companies have exploded on the upside: Aerial Communications (up 130 percent),
Price Communications (up 81 percent) and Telephone & Data Systems (up 63
percent) to name just a few.
Future Investment Strategy
Inflation reared its head in the second quarter of 1999. A jump in the Consumer
Price Index ("CPI") in April rattled the bond and equity markets. Inflation all
but disappeared again in the May CPI numbers. The bond market stabilized and
stocks regained momentum. Despite the dueling data on inflation, the Federal
Reserve decided to err on the side of caution by hiking the Federal Funds rate
by 0.25 percent on June 30, in what Chairman Alan Greenspan characterized as a
"preemptive action" against inflation. This sparked the current debate as to
whether this single modest rate hike would be an effective move against
inflation or just the first in a series of steps that will eventually weaken the
economy and financial markets. Judging from the bond and stock markets' slide in
late June, the consensus appears to expect more Fed rate hikes and higher
interest rates going forward.
Gabelli is cautiously optimistic on inflation in the near future. The
inflationary threat comes partially from rising commodities prices, which are
recovering from severely depressed levels following the Asian economic meltdown,
and from the prospect of wage inflation in a fully employed America. Thus far,
technology-driven productivity gains have offset rising wages.
THE ENTERPRISE Group of Funds, Inc.
22
<PAGE>
Along with Federal Reserve Chairman Alan Greenspan, Gabelli is not sure how much
longer this can continue in an America with help wanted signs in an increasing
number of corporate windows. The American consumer continues to be the key to
economic growth here and abroad. Full employment, rising wages and a generous
stock market have been the drivers for consumer spending. If rising interest
rates discourage consumer spending, or Gabelli sees a meaningful correction in
the stock market that would dent consumer confidence, the engine that has been
driving global economic growth could falter.
Corporate earnings and interest rates may determine the course of the market for
the balance of 1999. In general, first quarter earnings met consensus estimates
and second quarter earnings may be stronger than anticipated. Interest rates are
higher, and do not seem likely to trend much lower for the rest of the year.
With the S&P 500's gains already approximating 1999 earnings growth forecasts,
Gabelli sees little fundamental justification for the market to move appreciably
higher. Mutual fund flows are still favoring stocks, but money is no longer
pouring into equity mutual funds at the rates seen in previous years.
The views expressed in this report reflect those of the Fund Manager only
through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
THE ENTERPRISE Group of Funds, Inc.
23
<PAGE>
ENTERPRISE SMALL COMPANY VALUE FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 87.81%
- -------------------------------------------------------------------------
Advertising -- 0.91%
- -------------------------------------------------------------------------
BOWLIN Outdoor Advertising & Travel
Center Inc. (a) .......................... 20,000 $ 120,000
The Ackerley Group Inc. .................... 100,000 1,818,750
-----------
1,938,750
Aerospace -- 5.36%
- -------------------------------------------------------------------------
AAR Corporation ............................ 20,000 453,750
Ametek Inc. ................................ 55,000 1,265,000
Coltec Industries Inc. (a) ................. 20,000 433,750
Curtiss-Wright Corporation ................. 25,000 971,875
GenCorp Inc. ............................... 120,000 3,030,000
Kaman Corporation (Class A) ................ 68,000 1,066,750
Moog Inc. (Class A) (a) .................... 15,000 515,625
Sequa Corporation (Class A) ................ 20,000 1,400,000
Sequa Corporation (Class B) ................ 9,000 643,500
SPS Technologies Inc. (a) .................. 45,000 1,687,500
-----------
11,467,750
Apparel & Textiles -- 0.09%
- -------------------------------------------------------------------------
Carlyle Industries Inc. (a) ................ 150,000 192,188
Automotive -- 6.83%
- -------------------------------------------------------------------------
A. O. Smith Corporation .................... 15,000 420,000
A. O. Smith Corporation (Class A) .......... 5,000 135,625
Borg-Warner Automotive Inc. ................ 22,000 1,210,000
Clarcor Inc. ............................... 55,000 1,055,313
Earl Scheib Inc. (a) ....................... 85,000 403,750
Lund International Holdings Inc. (a) ....... 24,000 150,000
Midas Inc. ................................. 17,000 482,375
Modine Manufacturing Company ............... 85,000 2,767,812
Navistar International Corporation (a) ..... 22,000 1,100,000
Standard Motor Products Inc. ............... 120,000 2,940,000
Superior Industries International Inc. ..... 78,000 2,130,375
Wynns International Inc. ................... 98,326 1,812,886
-----------
14,608,136
Broadcasting -- 6.34%
- -------------------------------------------------------------------------
BHC Communications Inc.
(Class A) (a) ............................ 3,500 455,000
Chris-Craft Industries Inc. (a) ............ 70,968 3,344,367
Fisher Companies Inc. ...................... 23,500 1,480,500
Gray Communications Systems Inc. ........... 31,250 625,000
Gray Communications Systems Inc.
(Class B) ................................ 35,000 494,375
Paxson Communications
Corporation (a) .......................... 95,000 1,187,500
United Television Inc. ..................... 25,500 2,674,312
USA Networks Inc. (a) ...................... 82,000 3,290,250
-----------
13,551,304
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Building & Construction -- 0.22%
- -------------------------------------------------------------------------
Core Materials Corporation ................. 150,000 $ 468,750
Business Services -- 0.42%
- -------------------------------------------------------------------------
Nashua Corporation (a) ..................... 90,000 888,750
Cable -- 5.16%
- -------------------------------------------------------------------------
AFC Cable Systems Inc. (a) ................. 25,000 882,812
Cablevision Systems Corporation
(Class A) (a) ............................ 79,000 5,530,000
Century Communications Corporation
(Class A) (a) ............................ 18,000 828,000
Mercom Inc. (a) ............................ 135,000 1,603,125
Rogers Communications Inc.
(Class B) (a) ............................ 130,000 2,104,375
TCI Satellite Entertainment Inc.
(Class A) (a) ............................ 25,000 73,438
-----------
11,021,750
Chemicals -- 1.37%
- -------------------------------------------------------------------------
Church & Dwight Company Inc. ............... 10,000 435,000
Ferro Corp. ................................ 44,300 1,218,250
Sybron Chemicals Inc. (a) .................. 72,000 1,278,000
-----------
2,931,250
Communications -- 0.15%
- -------------------------------------------------------------------------
Western Wireless Corporation ............... 12,000 324,000
Computer Hardware -- 0.00%
- -------------------------------------------------------------------------
Cerion Technologies Inc. (a) (d) ........... 120,000 --
Computer Services -- 0.06%
- -------------------------------------------------------------------------
Tyler Technologies Inc. .................... 20,000 137,500
Computer Software -- 0.12%
- -------------------------------------------------------------------------
Barra Inc. ................................. 10,000 252,500
Consumer Durables -- 0.67%
- -------------------------------------------------------------------------
Hussmann International Inc. ................ 80,000 1,325,000
Noel Group (a) ............................. 15,000 9,375
Noel Group Units (a) ....................... 15,000 8,625
Oneida Ltd. ................................ 3,500 98,438
-----------
1,441,438
Consumer Products -- 0.17%
- -------------------------------------------------------------------------
ARC International Corporation (a) .......... 26,000 34,125
Mikasa Inc. ................................ 28,000 316,750
Milestone Scientific Inc. (a) .............. 3,000 3,188
-----------
354,063
Consumer Services -- 0.83%
- -------------------------------------------------------------------------
Berlitz International Inc. (a) ............. 35,000 643,125
ITT Educational Services Inc. (a) .......... 40,000 1,042,500
Loewen Group Inc. (ADR) .................... 175,000 98,438
-----------
1,784,063
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
24
<PAGE>
ENTERPRISE SMALL COMPANY VALUE FUND --(Continued)
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Electrical Equipment -- 1.67%
- -------------------------------------------------------------------------
Ampco-Pittsburgh Corporation ............... 57,000 $ 730,312
Donaldson Inc. ............................. 13,000 318,500
Oak Technology Inc. (a) .................... 180,000 652,500
Selas Corporation of America ............... 15,000 103,125
SL Industries Inc. ......................... 5,000 63,750
Thomas Industries Inc. ..................... 40,000 820,000
UCAR International Inc. (a) ................ 35,000 883,750
-----------
3,571,937
Electronics -- 0.51%
- -------------------------------------------------------------------------
CTS Corporation ............................ 15,000 1,050,000
Power-One Inc. (a) ......................... 2,000 49,250
-----------
1,099,250
Energy -- 0.43%
- -------------------------------------------------------------------------
International Comfort Products
Corporation .............................. 80,000 910,000
Entertainment & Leisure -- 4.11%
- -------------------------------------------------------------------------
Ascent Entertainment Group Inc. (a) ........ 60,000 847,500
Bull Run Corporation (a) ................... 100,000 418,750
Florida Panthers Holdings Inc. (a) ......... 50,000 534,375
Gaylord Entertainment Company .............. 125,000 3,750,000
GC Companies Inc. (a) ...................... 74,000 2,645,500
Jackpot Enterprises Inc. (a) ............... 70,000 595,000
-----------
8,791,125
Finance -- 0.68%
- -------------------------------------------------------------------------
Advest Group Inc. .......................... 25,000 498,438
Pioneer Group Inc. ......................... 55,000 948,750
-----------
1,447,188
Food & Beverages & Tobacco -- 4.24%
- -------------------------------------------------------------------------
Brunos Inc. (a) ............................ 27,500 6,875
Buenos Aires Embotelladora
(ADR) (a) (d) ............................ 22,794 --
Celestial Seasonings Inc. (a) .............. 100,000 2,150,000
Chock Full o' Nuts Corporation (a) ......... 100,000 1,043,750
General Cigar Holdings Inc.
(Class A) (a) ............................ 235,000 1,835,937
General Cigar Holdings Inc.
(Class B) (a) ............................ 8,000 59,504
Ingles Markets Inc. (Class A) .............. 70,000 1,067,500
J & J Snack Foods Corporation (a) .......... 5,000 120,000
Pepsi Cola Puerto Rico Bottling
Company (a) .............................. 110,000 605,000
Ralcorp Holdings Inc. (a) .................. 25,000 401,562
Robert Mondavi Corporation
(Class A) (a) ............................ 8,500 309,188
Vermont Pure Holdings Ltd. ................. 5,000 17,813
Whitman Corporation ........................ 80,000 1,440,000
-----------
9,057,129
Hotels & Restaurants -- 1.65%
- -------------------------------------------------------------------------
Aztar Corporation (a) ...................... 200,000 1,837,500
Extended Stay America Inc. (a) ............. 35,000 420,000
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Lakes Gaming Inc. (a) ...................... 21,000 $ 229,687
Park Place Entertainment
Corporation (a) .......................... 60,000 581,250
Trump Hotels & Casino Resorts
Inc. (a) ................................. 100,000 456,250
-----------
3,524,687
Insurance -- 3.63%
- -------------------------------------------------------------------------
Argonaut Group Inc. ........................ 84,000 2,016,000
Liberty Corporation ........................ 96,000 5,232,000
Midland Company ............................ 20,000 507,500
-----------
7,755,500
Machinery -- 5.92%
- -------------------------------------------------------------------------
Baldwin Technology Company Inc.
(Class A) (a) ............................ 105,000 308,438
Commercial Intertech Corporation ........... 45,000 717,187
Fairchild Corporation (Class A) (a) ........ 115,000 1,466,250
Flowserve Corporation ...................... 95,000 1,799,062
Hach Company ............................... 32,000 580,000
Hach Company (Class A) ..................... 41,000 722,625
Idex Corporation ........................... 48,000 1,578,000
Katy Industries Inc. ....................... 62,500 812,500
Kollmorgen Corporation ..................... 55,000 825,000
Nortek Inc. (a) ............................ 51,600 1,615,725
Paxar Corporation (a) ...................... 95,000 855,000
Standex International Corporation .......... 12,000 328,500
Tennant Company ............................ 3,000 96,000
Watts Industries Inc. (Class A) ............ 50,000 959,375
-----------
12,663,662
Manufacturing -- 5.21%
- -------------------------------------------------------------------------
Aviall Inc. ................................ 15,000 282,187
Avondale Industries Inc. ................... 25,000 975,000
Barnes Group Inc. .......................... 57,000 1,239,750
Belden Inc. ................................ 40,000 957,500
Bway Corporation (a) ....................... 8,000 114,000
Cuno Inc. (a) .............................. 30,000 573,750
Dexter Corporation ......................... 10,000 408,125
Fedders Corporation (Class A) .............. 65,000 398,125
Graco Inc. ................................. 22,000 646,250
Industrial Distribution Group Inc. (a) ..... 50,000 253,125
Mark IV Industries Inc. .................... 35,000 739,375
Material Sciences Corporation (a) .......... 70,500 1,057,500
Myers Industries Inc. ...................... 37,000 740,000
Oil Dri Corporation of America ............. 35,000 560,000
Park Ohio Holdings Corporation (a) ......... 72,000 1,219,500
Rawlings Sporting Goods Company
Inc. (a) ................................. 30,000 296,250
Strattec Security Corporation (a) .......... 20,000 675,000
-----------
11,135,437
Metals & Mining -- 0.38%
- -------------------------------------------------------------------------
TVX Gold Inc. (a) .......................... 350,000 350,000
WHX Corporation (a) ........................ 70,000 459,375
-----------
809,375
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
25
<PAGE>
ENTERPRISE SMALL COMPANY VALUE FUND --(Continued)
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Misc. Financial Services -- 1.31%
- -------------------------------------------------------------------------
Data Broadcasting Corporation (a) ......... 25,000 $ 264,063
Paymentech Inc. (a) ....................... 100,000 2,537,500
------------
2,801,563
Neutraceuticals -- 0.19%
- -------------------------------------------------------------------------
Natures Sunshine Products Inc. ............ 8,000 84,000
Weider Nutrition International Inc. ....... 78,000 321,750
------------
405,750
Oil Services -- 0.06%
- -------------------------------------------------------------------------
Fall River Gas Company .................... 7,300 138,700
Paper & Forest Products -- 1.40%
- -------------------------------------------------------------------------
Unisource Worldwide Inc. .................. 250,000 3,000,000
Paper Products -- 0.31%
- -------------------------------------------------------------------------
Greif Brothers Corporation (Class A) ...... 26,000 663,000
Pharmaceuticals -- 2.70%
- -------------------------------------------------------------------------
Agribrands International Inc. (a) ......... 8,000 316,500
Carter Wallace Inc. ....................... 150,000 2,728,125
Ivax Corporation (a) ...................... 160,000 2,260,000
Natural Alternatives International Inc. ... 5,000 17,187
Twinlab Corporation (a) ................... 52,000 446,875
------------
5,768,687
Printing & Publishing -- 6.02%
- -------------------------------------------------------------------------
A.H. Belo Corporation (Class A) ........... 30,000 590,625
Lee Enterprises Inc. ...................... 52,000 1,586,000
McClatchy Company (Class A) ............... 50,000 1,656,250
Media General Inc. (Class A) .............. 80,000 4,080,000
Penton Media Inc. ......................... 85,000 2,061,250
Pulitzer Inc. ............................. 30,000 1,456,875
Thomas Nelson Inc. ........................ 90,000 1,001,250
Topps Company Inc. (a) .................... 60,000 436,875
------------
12,869,125
Real Estate -- 1.25%
- -------------------------------------------------------------------------
Catellus Development Corporation (a) ...... 130,000 2,015,000
Griffin Land & Nurseries Inc. (a) ......... 39,000 438,750
Gyrodyne Company of America Inc. (a)....... 13,000 221,000
------------
2,674,750
Retail -- 1.64%
- -------------------------------------------------------------------------
CDnow Inc. (a) ............................ 3,000 52,875
Coldwater Creek Inc. (a) .................. 31,000 604,500
Lillian Vernon Corporation ................ 125,000 1,625,000
Neiman Marcus Group Inc. (a) .............. 35,000 899,063
Sports Authority Inc. (a) ................. 60,000 266,250
ValueVision International Inc.
(Class A) (a) ........................... 3,000 59,625
------------
3,507,313
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Security & Investigation Services -- 2.82%
- -------------------------------------------------------------------------
Borg-Warner Security Corporation (a) ...... 55,000 $ 1,117,187
Pittway Corporation (Class A) ............. 18,000 615,375
Rollins Inc. .............................. 260,000 4,143,750
Wackenhut Corporation (Class A) ........... 5,000 148,750
------------
6,025,062
Telecommunications -- 8.23%
- -------------------------------------------------------------------------
Aerial Communications Inc. (a) ............ 155,000 2,092,500
Aliant Communications Inc. ................ 20,000 923,750
Associated Group Inc. (Class A) (a) ....... 25,000 1,628,125
Atlantic Tele-Network Inc. ................ 12,000 126,000
Commnet Cellular Inc. ..................... 5,000 131,250
Commonwealth Telephone Enterprises
Inc. .................................... 30,410 1,229,704
Communications Systems Inc. ............... 65,000 804,375
COMSAT Corporation ........................ 50,000 1,625,000
GST Telecommunications Inc. (a) ........... 75,000 989,063
Omnipoint Corporation (a) ................. 47,000 1,360,062
Rogers Cantel Mobile Communications
Inc. (Class B) (a) ...................... 42,000 690,375
Telephone and Data Systems Inc. ........... 70,000 5,114,375
Teligent Inc. (Class A) (a) ............... 8,500 508,406
Viatel Inc. ............................... 6,500 364,813
------------
17,587,798
Transportation -- 0.85%
- -------------------------------------------------------------------------
GATX Corporation .......................... 40,000 1,522,500
TransPro Inc. ............................. 55,000 288,750
------------
1,811,250
Travel/Entertainment/Leisure -- 0.63%
- -------------------------------------------------------------------------
Hearst Argyle Television Inc. ............. 10,000 240,000
TV Guide Inc. (Class A) (a) ............... 30,000 1,098,750
------------
1,338,750
Utilities -- 2.39%
- -------------------------------------------------------------------------
AGL Resources Inc. ........................ 40,000 737,500
Citizens Utilities Company (Class B) (a)... 150,000 1,668,750
Eastern Enterprises ....................... 50,000 1,987,500
Florida Public Utilities Company .......... 7,200 135,900
Southwest Gas Corporation ................. 20,000 572,500
------------
5,102,150
Waste Management -- 0.07%
- -------------------------------------------------------------------------
Envirosource Inc. (a) ..................... 68,000 144,500
Wireless Communications -- 0.81%
- -------------------------------------------------------------------------
Allen Telecom Inc. (a) .................... 20,000 215,000
Leap Wireless International Inc. (a) ...... 4,000 81,000
Price Communications Corporation (a)....... 73,240 1,098,600
VoiceStream Wireless Corporation (a) ...... 12,000 341,250
------------
1,735,850
Total Common Stocks
(Identified cost $169,804,597)..............................187,701,730
- -------------------------------------------------------------------------
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
26
<PAGE>
ENTERPRISE SMALL COMPANY VALUE FUND --(Continued)
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
U.S. Treasury Bills -- 10.17%
- --------------------------------------------------------------------------
U.S. Treasury Bill
4.31% due 07/22/99 .................... $1,527,000 $ 1,523,161
U.S. Treasury Bill
4.335% due 07/22/99 ................... 2,706,000 2,699,157
U.S. Treasury Bill
4.44% due 07/15/99 .................... 1,276,000 1,273,797
U.S. Treasury Bill
4.51% due 09/16/99 .................... 1,364,000 1,350,842
U.S. Treasury Bill
4.525% due 08/12/99 ................... 1,645,000 1,636,316
U.S. Treasury Bill
4.54% due 09/02/99 .................... 4,850,000 4,811,467
U.S. Treasury Bill
4.545% due 09/16/99 ................... 2,688,000 2,661,869
U.S. Treasury Bill
4.67% due 10/07/99 .................... 2,282,000 2,252,990
U.S. Treasury Bill
4.68% due 09/30/99 .................... 3,579,000 3,536,660
------------
Total U.S. Treasury Bills
(Identified cost $21,746,259).......................... 21,746,259
- -----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Repurchase Agreement -- 2.34%
- --------------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement, 4.25% due 07/01/99
Collateral: U.S. Treasury Note
$5,005,000, 7.50% due 10/31/99,
Value $5,168,002....................... $5,000,000 $ 5,000,000
------------
Total Repurchase Agreement
(Identified cost $5,000,000).............................. 5,000,000
- --------------------------------------------------------------------------
Total Investments
(Identified cost $196,550,856)............................ $214,447,989
Other Assets Less Liabilities -- (0.32)%
(685,603)
------------
Net Assets -- 100% ....................................... $214,447,989
- --------------------------------------------------------------------------
</TABLE>
(a) Non-income producing security.
(d) Security is being fair valued at 6/30/99.
(ADR) American Depository Receipt.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
27
<PAGE>
Enterprise International Growth Fund
Vontobel USA Inc.
New York, NY
Investment Management
Vontobel USA became portfolio manager on April 1, 1999. The firm manages
approximately $2 billion and its normal investment minimum is $10 million.
Investment Objective
The objective of the Enterprise International Growth Fund is to seek capital
appreciation.
Investment Strategies
The International Growth Fund invests primarily in non-U.S. equity securities
that the Fund Manager believes are undervalued. The Fund Manager uses an
approach that involves bottom-up stock selection. The Fund Manager looks for
companies that are good predictable businesses selling at attractive prices
relative to an estimate of intrinsic value. The Fund Manager diversifies
investments among European, Australian and Far East ("EAFE") markets.
First Half 1999 Performance Review
Vontobel assumed management of the Fund on April 1, 1999. As of June 30, 1999,
the Fund has been completely restructured to reflect Vontobel's investment
philosophy. Hedge positions against the Euro and the Swiss Franc have been
opened to protect European investment returns in U.S. Dollar terms.
A large number of positions were closed, and the total number of holdings were
reduced from over 200 to well under 100. This reflects the Vontobel policy of
bottom-up security selection that focuses on companies with attractive
fundamentals, offering high return on equity, consistent historical earnings
growth, low debt and high free cash flow. Additionally, the country allocation
shifted. All Canadian positions were closed, holdings in the European sector
were increased, and Pacific Rim holdings were reduced. Currently, there is a
very slight overweight versus the EAFE in Europe, a market-neutral posture in
Japan, and a modest underweight in the Pacific Rim.
The massive sell-off of securities necessary to align the portfolio with
Vontobel's current investment strategy had a negative impact on performance
early in the second quarter. Losses were sustained while unloading many
securities that did not meet Vontobel's investment criterion, largely due to
company fundamentals. As the quarter progressed, and the fund management team
was able to reap the rewards of holding positions that conform to current
investment outlook and philosophy, performance picked up in the later weeks of
the quarter.
Future Investment Strategy
Given the real interest rate climate in Europe, it is reasonable to believe that
the equity markets are currently undervalued. Vontobel thinks that as the
earnings currently coming through are higher than projected expectations,
revaluations will occur.
Major market sectors in Europe, such as finance, health care and
telecommunications may benefit from the current economic environment, with
rising rates, and a Euro-Dollar exchange rate that is continuing to be favorable
for Euroland exports. Vontobel's belief is that the Euro will test parity in the
coming months. Many restructurings and significant merger and acquisition
activity adds to what Vontobel believes is a positive climate for businesses in
the new Europe, spurring a continued overweighting in the European sector.
Japanese and the other Asian markets have been driven by liquidity for the first
six months of 1999, and Vontobel questions the sustainability of the current
rebound. Some restructuring has begun in Japan, but for the near-term Vontobel
projects a neutral exposure as Vontobel still believes they provide attractive
investment opportunities. The majority of the Fund's Japanese holdings have
average earnings expectations of about 35 percent, and most are businesses with
large overseas markets.
As with all international funds, the Enterprise International Growth Fund
carries additional risks associated with possibly less stable foreign
securities, currencies, lack of uniform accounting standards and political
instability.
The views expressed in this report reflect those of the Fund Manager only
through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
THE ENTERPRISE Group of Funds, Inc.
28
<PAGE>
ENTERPRISE INTERNATIONAL GROWTH FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 94.27%
- ------------------------------------------------------------------------
Belgium -- 0.66%
- ------------------------------------------------------------------------
Barco ..................................... 3,100 $ 498,839
Denmark -- 0.50%
- ------------------------------------------------------------------------
Bang & Olufsen Holdings (Class B) ......... 6,000 380,214
Finland -- 1.82%
- ------------------------------------------------------------------------
Nokia Corporation (ADR) (Class A) ......... 9,200 842,375
Sampo Insurance Company Ltd.
(Class A) ............................... 18,300 530,094
-----------
1,372,469
France -- 11.94%
- ------------------------------------------------------------------------
Altran Technologies ....................... 2,400 633,354
Axa ....................................... 9,200 1,121,936
CGIP ...................................... 16,900 817,062
Dassault Systemes ......................... 19,200 634,344
L'Oreal ................................... 1,200 810,867
Louis Vuitton Moet Hennessy ............... 3,200 936,507
Louis Vuitton Moet Hennessy (Rts) ......... 3,200 93,519
Scor ...................................... 20,600 1,021,428
Societe Generale (Class A) ................ 5,000 880,862
Total Fina (Class B) ...................... 9,300 1,199,322
Vivendi ................................... 10,800 874,512
-----------
9,023,713
Germany -- 3.53%
- ------------------------------------------------------------------------
Allianz ................................... 2,200 610,057
BMW ....................................... 1,000 687,577
Mannesmann ................................ 9,200 1,372,309
-----------
2,669,943
Hong Kong -- 2.43%
- ------------------------------------------------------------------------
Dah Sing Financial Group .................. 124,000 472,276
SmarTone Telecommunications
Holdings Ltd. ........................... 153,000 544,274
Sun Hung Kai Properties Ltd. .............. 90,000 820,702
-----------
1,837,252
Ireland -- 2.40%
- ------------------------------------------------------------------------
Allied Irish Banks ........................ 57,800 765,301
CRH ....................................... 21,400 379,088
Elan Corporation (ADR) (a) ................ 24,000 666,000
-----------
1,810,389
Italy -- 0.79%
- ------------------------------------------------------------------------
Telecom Italia ............................ 57,200 594,364
Japan -- 20.59%
- ------------------------------------------------------------------------
Bridgestone Corporation ................... 35,000 1,058,940
Fuji Photo Film ........................... 21,000 795,073
Honda Motor Company Ltd. .................. 18,000 763,330
Hoya Corporation .......................... 16,000 903,365
Mikuni Coca-Cola Bottling
Company Ltd. ............................ 15,000 305,034
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Murata Manufacturing Company Ltd. ......... 14,000 $ 921,220
Nintendo Company Ltd. ..................... 9,000 1,265,520
NTT Data Corporation ...................... 104 827,048
NTT Mobile Communication
Network Inc. ............................ 27 366,041
NTT Mobile Communication
Network Inc. (a) ........................ 108 1,446,309
Rohm Company Ltd. ......................... 12,000 1,879,805
Sony Corporation .......................... 11,000 1,186,658
Takeda Chemical Industries ................ 38,000 1,762,255
Tokyo Broadcasting System Inc. ............ 27,000 390,593
Tokyo Electron Ltd. ....................... 17,000 1,153,757
Yasuda Fire & Marine Insurance
Company Ltd. ............................ 101,000 535,182
-----------
15,560,130
Malaysia -- 0.04%
- ------------------------------------------------------------------------
Malayan Banking Berhad .................... 7,000 21,000
Nestle (Malaysia) Berhad .................. 4,000 15,789
-----------
36,789
Netherlands -- 9.52%
- ------------------------------------------------------------------------
Aegon ..................................... 11,500 851,000
Aegon (ADR) ............................... 15,200 1,102,309
ASM Lithography Holdings (a) .............. 18,800 1,087,217
Getronics ................................. 13,700 526,775
Heineken .................................. 16,200 829,144
Hunter Douglas ............................ 16,219 556,755
Kempen & Company .......................... 11,000 549,958
Philips Electronics ....................... 9,292 916,199
Unilever .................................. 714 48,099
Vendex KBB ................................ 27,400 731,553
-----------
7,199,009
Singapore -- 2.47%
- ------------------------------------------------------------------------
Jardine Strategic Holdings Ltd. ........... 284,000 738,400
Singapore Press Holdings Ltd. ............. 66,388 1,131,170
-----------
1,869,570
Spain -- 0.88%
- ------------------------------------------------------------------------
Banco Popular Espanol ..................... 9,200 661,497
Sweden -- 6.59%
- ------------------------------------------------------------------------
ABB (Class B) ............................. 68,600 909,118
Assa Abloy (Class B) ...................... 125,600 1,361,197
Assa Abloy (Rts) (Class B) ................ 125,600 26,632
AstraZeneca Group ......................... 27,882 1,087,165
Hennes & Mauritz (Series B) ............... 50,600 1,251,737
OM Gruppen ................................ 30,200 341,524
-----------
4,977,373
Switzerland -- 9.47%
- ------------------------------------------------------------------------
Credit Suisse Group ....................... 9,600 1,660,601
Nestle .................................... 600 1,080,702
Pharma Vision 2000 (a) .................... 500 315,092
Roche Holdings ............................ 34 559,707
Roche Holdings Genusschein ................ 186 1,911,311
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
29
<PAGE>
ENTERPRISE INTERNATIONAL GROWTH FUND --(Continued)
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Schweizerische Rueckversicherungs-
Gesellschaft ............................ 500 $ 951,707
Swisscom (a) .............................. 1,800 677,127
-----------
7,156,247
United Kingdom -- 20.64%
- ------------------------------------------------------------------------
BP Amoco (ADR) ............................ 7,300 792,050
Capita Group .............................. 50,300 520,509
CGU ....................................... 39,900 574,522
Compass Group ............................. 134,500 1,334,576
Diageo .................................... 37,000 388,711
Dixons Group .............................. 59,500 1,116,064
Hays ...................................... 68,600 723,395
HSBC Holdings ............................. 35,700 1,264,998
Invensys .................................. 122,900 581,164
Lloyds TSB Group .......................... 59,200 803,900
Misys ..................................... 91,100 779,728
Next ...................................... 43,500 527,965
Provident Financial ....................... 38,400 527,804
Rentokil Initial .......................... 283,100 1,097,742
Schroders ................................. 28,200 568,963
Securicor ................................. 81,900 720,995
Smithkline Beecham ........................ 45,800 595,586
Tomkins ................................... 144,000 624,195
Vodafone AirTouch ......................... 57,800 1,137,019
WPP Group ................................. 109,000 922,798
-----------
15,602,684
Total Common Stocks
(Identified cost $68,595,030).......................... 71,250,482
- --------------------------------------------------------- -----------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Preferred Stock -- 1.85%
- ------------------------------------------------------------------------
Germany -- 1.85%
- ------------------------------------------------------------------------
Sap ....................................... 3,500 $ 1,398,091
-----------
Total Preferred Stock
(Identified cost $1,108,242)............................. 1,398,091
- --------------------------------------------------------- --------------
Convertible Corporate Bond -- 0.53%
- ------------------------------------------------------------------------
United States -- 0.53%
- ------------------------------------------------------------------------
Salomon Smith Barney Holdings Inc.
(Series H) 5.12% due 01/21/00 (v) ....... $400,000 398,000
-----------
Total Convertible Corporate Bond
(Identified cost $400,000).............................. 398,000
- ------------------------------------------------------------------------
Total Investments
(Identified cost $70,103,272)........................... $73,046,573
Other Assets Less Liabilities -- 3.35% .................... 2,533,716
-----------
Net Assets -- 100% ........................................$75,580,289
- ------------------------------------------------------------------------
</TABLE>
(a) Non-income producing security.
(v) Variable interest rate security. Interest rate is as of June 30, 1999, and
is adjusted monthly.
(Rts) Rights
(ADR) American Depository Receipt.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
30
<PAGE>
Enterprise Global Financial Services Fund
Sanford C. Bernstein & Co., Inc.
New York, New York
Investment Management
Sanford C. Bernstein & Co., Inc., which has approximately $90 billion in assets
under management, became manager of the Fund on October 1, 1998, the Fund's
inception date. Sanford C. Bernstein's normal investment minimum is $5 million.
Investment Objective
The objective of the Enterprise Global Financial Services Fund is to seek
capital appreciation.
Investment Strategies
The Global Financial Services Fund invests primarily in the domestic and foreign
financial services industry by normally investing in companies domiciled in the
U.S. and in at least three other countries. The Fund considers a financial
services company to be a firm that in its most recent fiscal year either (i)
derived at least 50 percent of its revenues or earnings from financial services
activities, or (ii) devoted at least 50 percent of its assets to such
activities. Financial services companies provide financial services to consumers
and businesses and include the following types of U.S. and foreign firms:
commercial banks, thrift institutions and their holding companies; consumer and
industrial finance companies; diversified financial services companies;
investment banks; securities brokerage and investment advisory firms; financial
technology companies; real estate-related firms; leasing firms; credit card
companies; government sponsored financial enterprises; investment companies;
insurance brokerage; and various firms in all segments of the insurance industry
such as multi-line property and casualty, life insurance companies and insurance
holding companies. The Fund Manager selects securities by combining fundamental
and quantitative research to identify securities of financial services companies
that are attractively priced relative to their expected returns. Its research
analysts employ a long-term approach to forecasting the earnings and growth
potential of companies and attempt to construct global portfolios that produce
maximum returns at a given risk level.
First Half 1999 Performance Review
The Fund's investments are primarily in attractively priced banks with dominant
franchises in growing markets, strong management and diversified product lines.
One such investment was Republic New York Corporation, a U.S.-based company with
a strong private-banking franchise and conservative balance sheet. Attractively
valued when the Fund purchased it, Republic was restructuring its operations to
reduce costs and improve profitability. In May, HSBC Holdings, one of the
world's largest banks, which is listed both in the U.K. and Hong Kong, agreed to
buy Republic at almost an 11 percent premium to its average price prior to the
deal's announcement. The offer reflects Republic's attractive franchise and
improving profitability. Bernstein sold the Fund's position to capture the value
unlocked by this deal.
The already rapid pace of merger and acquisition activity in the U.S. may get
another boost soon: The House of Representatives passed a bill that would
eliminate many of the Glass-Steagall Act's barriers separating banks, brokerage
firms and insurers. Although the House bill must be reconciled with a Senate
version and signed by the president before becoming law, several of the Fund's
holdings traded up on the news. Among them were American General and Lincoln
National, life insurance companies that seem ripe for consolidation. Both
companies have strong market positions in a broad array of products and
distribution relationships, traits seen as attractive to a bank seeking to enter
the life insurance market.
In Europe, the battle between French banks Societe Generale and Paribas, which
want to merge, and BNP, which has made a hostile bid for both, continues after a
French government attempt to broker a solution failed. In Italy, the offer by
Unicredito, the nation's third largest bank, to buy Banca Commerciale, the
fourth largest bank and one of the Fund's holdings, was withdrawn after being
rejected by Banca Commerciale's board. However, a subsequent offer by Banca
Intesa, Italy's second largest bank, has been approved. Both deals, if
completed, would create massive institutions that would dominate their local
markets and be formidable competitors in the unified European market -- or on
the global stage.
European banking is also being transformed by privatization. Because
participation in the Euro, Europe's new common currency, requires fiscal
prudence, European governments can no longer afford to subsidize
government-owned institutions. As a result, the French government recently
privatized Credit Lyonnais, a banking giant it bailed out a few years ago. The
IPO follows last year's privatization of CNP, the largest life insurer in
France. Monte Paschi di Siena, Italy's oldest bank,
THE ENTERPRISE Group of Funds, Inc.
31
<PAGE>
also recently made its stock market debut in June. While the Fund did not
purchase either of these stocks, Berstein expects privatization to lead to a
greater focus on profitability, forcing inefficient firms to restructure or
merge. It will also create a level playing field for all competitors.
Greater reliance on the Internet is also likely to accelerate the pace of change
in the global financial services industry, by changing the nature of products
and delivery of services. Online brokerage probably represents the most mature
and profitable segment of e-finance, but a number of banks have also developed
Internet strategies targeted at retaining existing customers, attracting new
customers and offering new products. Bank One, one of the Fund's U.S. holdings,
launched an Internet-only bank subsidiary aimed at attracting customers who want
to conduct all of their banking business online. The new venture will allow Bank
One to compete more effectively with other Internet-based financial providers,
with a significant advantage: Its customers will be able to access Bank One's
other delivery channels -- most importantly, its nationwide network of ATMs --
for making deposits and withdrawing cash. We think this initiative increases the
appeal of what was already a rapidly growing, well run and attractively valued
bank.
In Germany, where Internet finance is still something of a novelty, Commerzbank,
one of the Fund's holdings, set up an online brokerage unit called Comdirect two
years ago. It has already beat targets: Comdirect has over 100,000 on-line
brokerage clients and posted a profit of 2.3 million Euros in 1998, a year
earlier than forecast. Commerzbank is now contemplating listing Comdirect
shares, which could have a positive impact on the parent's stock price. The only
listed on-line broker in Germany, ConSors Discount Broker, has no more Internet
clients than Comdirect, yet since its initial public offering in May, its stock
price has soared. The high-flying stock now has market capitalization of about 4
billion Euros. If Comdirect achieved a similar market capitalization, it may
lift Commerzbank's share price 25 percent.
Future Investment Strategy
Opportunities abound in the financial services markets, which are being swept by
far-reaching change. Mergers and acquisitions, restructuring activity and an
increased focus on technology are transforming the industry. Berstein is
focusing their research efforts on identifying those financial institutions most
likely to be successful in adapting to this new environment, but invests only in
those stocks whose prices are low relative to their long-term earnings
potential. The Global Financial Services Fund employs Bernstein's
research-driven approach to identifying value. Bernstein selects companies whose
share prices are low relative to their forecast of their long-term earnings
power. In any one-time period, value investing may not produce returns superior
to the broader equity markets. However, history has shown that over time, value
stocks tend to outperform their local markets as other investors recognize their
potential.
As with all international funds, the Enterprise Global Financial Services Fund
carries additional risks associated with possibly less stable foreign
securities, currencies, lack of uniform accounting standards and political
instability.
The views expressed in this report reflect those of the Fund Manager only
through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
THE ENTERPRISE Group of Funds, Inc.
32
<PAGE>
ENTERPRISE GLOBAL FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Domestic Stocks -- 72.52%
- ----------------------------------------------------------------------
Banking -- 31.69%
- ----------------------------------------------------------------------
Bank of America Corporation ............. 11,000 $ 806,437
Bank One Corporation .................... 12,100 720,706
BankBoston Corporation .................. 4,400 224,950
Chase Manhattan Corporation ............. 1,200 103,950
Eighteenth Bank Ltd. .................... 34,000 144,746
First Union Corporation ................. 12,100 568,700
Fleet Financial Group Inc. .............. 10,200 452,625
J.P. Morgan & Company Inc. .............. 1,150 161,575
KeyCorp ................................. 10,000 321,250
National City Corporation ............... 6,400 419,200
PNC Bank Corporation .................... 4,100 236,263
Wells Fargo & Company ................... 8,850 378,338
-----------
4,538,740
Finance -- 0.66%
- ----------------------------------------------------------------------
Household International Inc. ............ 2,000 94,750
Insurance -- 2.61%
- ----------------------------------------------------------------------
Royal & Sun Alliance Insurance
Group ................................. 36,590 327,883
Jefferson-Pilot Corporation ............. 700 46,331
-----------
374,214
Life Insurance -- 5.73%
- ----------------------------------------------------------------------
American General Corporation ............ 4,100 309,037
Torchmark Corporation ................... 7,100 242,288
UnumProvident Corporation (a) ........... 4,900 268,275
-----------
819,600
Misc. Financial Services -- 10.31%
- ----------------------------------------------------------------------
Ambac Financial Group Inc. .............. 4,000 228,500
American Express Company ................ 1,600 208,200
Citigroup Inc. .......................... 14,075 668,562
Countrywide Credit Industries Inc. ...... 500 21,375
MBIA Inc. ............................... 5,400 349,650
-----------
1,476,287
Multi-Line Insurance -- 9.52%
- ----------------------------------------------------------------------
American International Group Inc. ....... 6,200 725,788
Hartford Financial Services Group Inc.... 1,600 93,300
Lincoln National Corporation ............ 4,000 209,250
SAFECO Corporation ...................... 7,600 335,350
-----------
1,363,688
Property-Casualty Insurance -- 5.33%
- ----------------------------------------------------------------------
Allstate Corporation .................... 6,600 236,775
Chubb Corporation ....................... 5,700 396,150
St. Paul Companies Inc. ................. 4,100 130,431
-----------
763,356
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Savings and Loan -- 6.67%
- ----------------------------------------------------------------------
Federal National Mortgage Association.... 7,800 $ 533,325
Golden West Financial Corporation ....... 2,500 245,000
Washington Mutual Inc. .................. 5,000 176,875
-----------
955,200
-----------
Total Domestic Stocks
(Identified cost $9,014,036)........................... 10,385,835
- ----------------------------------------------------------------------
Foreign Stocks -- 25.70%
- ----------------------------------------------------------------------
Banking -- 8.50%
- ----------------------------------------------------------------------
Austria -- 0.11%
- ----------------------------------------------------------------------
Bank Austria ............................ 300 15,772
Canada -- 0.76%
- ----------------------------------------------------------------------
Bank of Nova Scotia Halifax ............. 2,600 56,502
National Bank of Canada ................. 4,000 52,428
France -- 0.59%
- ----------------------------------------------------------------------
Banque Nationale de Paris ............... 550 45,811
Compagnie Financiere de Paribas ......... 350 39,219
Germany -- 1.40%
- ----------------------------------------------------------------------
Commerzbank ............................. 6,600 200,366
Italy -- 1.69%
- ----------------------------------------------------------------------
Banca Commerciale Italiana .............. 9,000 65,686
Banca Popolare Di Bergamo Credito
Varesino .............................. 3,000 65,871
Banca Popolare Di Milano ................ 9,000 69,490
San Paolo IMI ........................... 3,000 40,822
Japan -- 2.27%
- ----------------------------------------------------------------------
Bank of Iwate Ltd. ...................... 1,000 40,589
Kita-Nippon Bank Ltd. ................... 1,600 68,777
Mitsui Trust & Banking Company Ltd....... 100,000 159,544
Nanto Bank Ltd. ......................... 9,000 46,499
Yamanashi Chuo Bank Ltd. ................ 3,000 10,292
Norway -- 0.08%
- ----------------------------------------------------------------------
Christiania Bank Og Kreditkasse ......... 2,000 7,182
Sparebanken NOR ......................... 200 3,731
Singapore -- 0.31%
- ----------------------------------------------------------------------
Keppel Land Ltd. ........................ 6,000 11,281
Overseas Union Bank Ltd. ................ 4,400 21,198
Singapore Land Ltd. ..................... 4,000 11,751
Spain -- 1.29%
- ----------------------------------------------------------------------
Argentaria .............................. 8,100 184,115
-----------
1,216,926
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
33
<PAGE>
ENTERPRISE GLOBAL FINANCIAL SERVICES FUND --(Continued)
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Life Insurance -- 0.33%
- ----------------------------------------------------------------------
Italy -- 0.33%
- ----------------------------------------------------------------------
Unipol ................................. 11,000 $ 46,491
Misc. Financial Services -- 10.96%
- ----------------------------------------------------------------------
Australia -- 1.04%
- ----------------------------------------------------------------------
Westfield Trust ........................ 74,000 149,590
France -- 0.27%
- ----------------------------------------------------------------------
Simco .................................. 450 38,038
Germany -- 0.76%
- ----------------------------------------------------------------------
Deutsche Pfandbriefbank ................ 1,200 108,858
Hong Kong -- 1.36%
- ----------------------------------------------------------------------
Amoy Properties Ltd. ................... 102,000 95,971
Dao Heng Bank Group Ltd. ............... 12,000 53,824
Hang Lung Development Company
Ltd. ................................. 36,000 44,544
Japan -- 1.89%
- ----------------------------------------------------------------------
Daiwa Securities Group Inc. ............ 19,000 125,651
San-in Godo Bank Ltd. .................. 25,000 145,491
Netherlands -- 2.01%
- ----------------------------------------------------------------------
ING Groep .............................. 2,725 147,476
Wereldhave ............................. 2,725 139,751
Singapore -- 0.10%
- ----------------------------------------------------------------------
United Overseas Bank Ltd. .............. 2,000 13,984
Sweden -- 0.56%
- ----------------------------------------------------------------------
Tornet Fastighets ...................... 5,900 80,275
Switzerland -- 1.81%
- ----------------------------------------------------------------------
Schweizerische Rueckversicherungs-
Gesellschaft ......................... 15 28,551
UBS .................................... 775 231,239
United Kingdom -- 1.16%
- ----------------------------------------------------------------------
MEPC ................................... 20,500 166,897
-----------
1,570,140
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Multi-Line Insurance -- 5.39%
- ----------------------------------------------------------------------
France -- 0.55%
- ----------------------------------------------------------------------
Scor ................................... 1,600 $ 79,334
Germany -- 0.76%
- ----------------------------------------------------------------------
Hannover Rueckversicherungs ............ 850 67,908
Mannheimer Aktiengesellschaft .......... 80 41,069
Switzerland -- 0.86%
- ----------------------------------------------------------------------
Baloise Holding Ltd. ................... 150 122,307
United Kingdom -- 3.22%
- ----------------------------------------------------------------------
CGU .................................... 20,000 287,981
Guardian Royal Exchange ................ 30,400 172,505
-----------
771,104
Property-Casualty Insurance -- 0.52%
- ----------------------------------------------------------------------
Finland -- 0.12%
- ----------------------------------------------------------------------
Pohjola Group Insurance Corporation .... 350 17,950
France -- 0.27%
- ----------------------------------------------------------------------
AGF (Assurances Generales de France) ... 800 38,512
Italy -- 0.13%
- ----------------------------------------------------------------------
Unipol (Preferred) ..................... 8,000 18,473
-----------
74,935
-----------
Total Foreign Stocks
(Identified cost $3,386,116).......................... 3,679,596
- ------------------------------------------------------ ---------------
Repurchase Agreement -- 1.08%
- ----------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement, 4.25% due 07/01/99
Collateral: U.S. Treasury Note
$155,000, 6.25% due 02/15/07 Value
$163,826 ............................. $155,000 155,000
-----------
Total Repurchase Agreement
(Identified cost $155,000)............................. 155,000
- ----------------------------------------------------------------------
Total Investments
(Identified cost $12,555,152)......................... $14,220,431
Other Assets Less Liabilities -- 0.70% ................ 100,484
-----------
Net Assets -- 100% .................................... $14,320,915
- ----------------------------------------------------------------------
</TABLE>
(a) Non-income producing security.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
34
<PAGE>
Enterprise Government Securities Fund
TCW Funds Management, Inc.
Los Angeles, California
Investment Management
TCW Funds Management, Inc., is a wholly owned subsidiary of TCW Management
Company. TCW manages approximately $55 billion for institutional clients, and
its normal investment minimum is $35 million.
Investment Objective
The objective of the Enterprise Government Securities Fund is to seek current
income and safety of principal.
Investment Strategies
The Government Securities Fund invests primarily in securities that are
obligations of the U.S. Government, its agencies or instrumentalities. The
Fund's investments may include securities issued by the U.S. Treasury such as
treasury bills, treasury notes and treasury bonds. In addition, the Fund may
invest in securities that are issued or guaranteed by agencies and
instrumentalities of the U.S. Government. Securities issued by agencies or
instrumentalities may or may not be backed by the full faith and credit of the
United States. Securities issued by the Government National Mortgage Association
("GNMA Certificates") are examples of full faith and credit securities. Agencies
and instrumentalities whose securities are not backed by the full faith and
credit of the United States include the Federal National Mortgage Association
(Fannie Mae) and Freddie Mac. To a limited extent, the Fund may invest in
mortgage-backed securities, including collateralized mortgage obligations
("CMOs"). The Fund may concentrate from time to time in different U.S.
Government securities in order to obtain the highest available level of current
income and safety of principal.
First Half 1999 Performance Review
Interest rates in the U.S. moved steadily higher over the past six months.
Investors grew increasingly uneasy over indications that the U.S. economy was
still growing robustly, raising concerns that higher interest rates and
inflation may be around the corner. Even though most inflation indicators
remained within tolerable limits, tight labor markets combined with high levels
of consumer spending and confidence worried investors. A shift in investor
preference from U.S. Treasuries towards higher-yielding asset classes also
contributed to the bond market sell-off.
During the six months ended June 30, 1999, the yield on the benchmark 10-year
U.S. Treasury Bond, off which 30-year fixed rate current coupon mortgage yields
are often spread, rose 1.14 percent. Rising mortgage rates led to declining
prepayment rates, which in turn extended the average lives and durations of many
types of mortgage-backed securities. Extension risk was only one of several
factors that impacted mortgage performance. During the second quarter, mortgage
spreads also widened in tandem with other fixed-income securities and in
response to the increase in market volatility.
Future Investment Strategy
TCW's outlook for the mortgage sector remains positive. There are a few signs
that economic growth is moderating, particularly in the housing sector.
Mortgages remain cheap relative to their historical valuations and further
declines in market volatility should tighten spreads. TCW maintains a positive
outlook on the mortgage sector and the performance of the Fund due to higher
yield levels combined with TCW's continued focus on call protection and security
structure.
The views expressed in this report reflect those of the Fund Manager only
through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
THE ENTERPRISE Group of Funds, Inc.
35
<PAGE>
ENTERPRISE GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
U.S. Government & Agency Obligations -- 85.98%
- -------------------------------------------------------------------------
Freddie Mac Participation Certificates -- 6.28%
- -------------------------------------------------------------------------
FHLPC 7.00%, due 09/01/17 .............. $1,337,365 $ 1,327,268
FHLPC 7.00%, due 10/01/17 .............. 1,661,245 1,649,185
FHLPC 9.00%, due 10/01/22 .............. 1,206,862 1,275,363
FHLPC 10.00%, due 10/01/18 ............. 808,909 870,556
FHLPC 10.00%, due 07/01/20 ............. 1,398,186 1,505,902
FHLPC 10.00%, due 10/01/20 ............. 675,470 725,536
------------
7,353,810
Federal Housing Administration -- 19.56%
- -------------------------------------------------------------------------
FHA 6.75%, due 11/01/28 ................ 2,195,677 2,132,552
FHA 7.00%, due 10/01/28 ................ 2,294,830 2,274,750
FHA 7.18%, due 02/20/29 ................ 3,372,025 3,342,520
FHA 7.625%, due 06/01/28 ............... 3,670,140 3,674,728
FHA 7.75%, due 05/01/18 ................ 6,150,508 6,158,196
FHA 7.80%, due 09/01/23 ................ 2,722,850 2,726,253
FHA 8.70%, due 12/01/27 ................ 2,553,081 2,607,335
------------
22,916,334
Federal National Mortgage Association -- 24.67%
- -------------------------------------------------------------------------
FNMA 5.50%, due 01/01/09 ............... 1,555,234 1,496,897
FNMA 5.50%, due 02/01/09 ............... 4,775,215 4,578,333
FNMA 5.50%, due 02/01/09 ............... 3,076,004 2,952,287
FNMA 5.50%, due 06/01/09 ............... 3,000,000 2,861,250
FNMA 6.00%, due 11/01/28 ............... 3,963,296 3,726,054
FNMA 6.00%, due 11/01/28 ............... 7,904,291 7,432,010
FNMA 6.50%, due 02/01/09 ............... 119,339 118,197
FNMA 7.00%, due 03/01/14 ............... 1,313,476 1,303,375
FNMA 8.00%, due 11/01/16 ............... 2,088,157 2,090,767
FNMA 9.50%, due 08/01/20 ............... 761,986 809,587
FNMA 9.50%, due 10/01/20 ............... 848,811 901,455
FNMA 10.00%, due 07/01/20 .............. 161,416 173,402
FNMA 10.00%, due 07/01/20 .............. 301,632 323,968
FNMA Principal Strip 0%,
due 08/10/04 (c) ..................... 125,000 124,286
------------
28,891,868
Government National Mortgage Association -- 29.61%
- -------------------------------------------------------------------------
GNMA 6.50%, due 08/15/28 ............... 1,474,708 1,420,792
GNMA 6.50%, due 02/20/29 ............... 9,989,733 9,574,460
GNMA 6.50%, due 05/15/29 ............... 5,000,000 4,812,600
GNMA 7.00%, due 12/15/27 ............... 4,041,912 3,997,168
GNMA 7.00%, due 10/15/33 ............... 14,757,718 14,872,680
GNMA 9.00%, due 08/15/16 ............... 4,632 4,891
------------
34,682,591
U.S. Treasury Notes -- 5.86%
- -------------------------------------------------------------------------
U.S. Treasury Note 3.375%,
due 01/15/07 ......................... 3,000,000 2,875,290
U.S. Treasury Note 6.50%,
due 08/15/05 ......................... 3,500,000 3,598,700
U.S. Treasury Note 8.875%,
due 05/15/00 ......................... 380,000 391,818
------------
6,865,808
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Total U.S. Government & Agency
Obligations
(Identified cost $102,932,217).......................... $100,710,411
- -------------------------------------------------------- ----------------
Collateralized Mortgage Obligations -- 3.16%
- -------------------------------------------------------------------------
FNMA Remic 6.50%, due 06/25/23 ......... $ 388,967 385,544
Freddie Mac Series 1552 Class YA
8.99%, due 08/15/23 (v) .............. 1,291,553 1,176,928
Freddie Mac Series 1634 Class SB
8.80%, due 12/15/23 (v) .............. 2,222,727 2,136,596
------------
Total Collateralized Mortgage Obligations
(Identified cost $3,691,182)............................ 3,699,068
- -------------------------------------------------------------------------
Corporate Bonds -- 9.48%
- -------------------------------------------------------------------------
PNC Mortgage Securities
Corporation 6.25%, due
02/25/14 ............................. 3,890,848 3,751,517
PNC Mortgage Securities
Corporation Series 1998-5
6.625%, due 07/25/28 ................. 1,989,794 1,953,082
Structured Asset Securities
Corporation 6.75%, due
03/25/29 ............................. 4,841,786 4,696,532
Superior Wholesale Inventory
Financing Trust Series 1997-A
6.346%, due 11/15/04 ................. 705,438 705,625
------------
11,106,756
Total Corporate Bonds
(Identified cost $11,447,373)........................... 11,106,756
- -------------------------------------------------------------------------
Repurchase Agreement -- 0.82%
- -------------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement 4.25%,
due 07/01/99
Collateral: U.S. Treasury
Bond, $900,000, 7.25% due
5/15/16 Value $996,786................ 965,000 965,000
------------
Total Repurchase Agreement
(Identified cost $965,000).............................. 965,000
- -------------------------------------------------------------------------
Total Investments
(Identified cost $119,035,772)........................... $116,481,235
Other Assets Less Liabilities -- 0.56% .................. 658,068
------------
Net Assets -- 100% ..................................... $117,139,303
- -------------------------------------------------------------------------
</TABLE>
(c) Step Bond -- coupon increases periodically based upon predetermined
schedule.
(v) Variable interest rate security; interest rate is as of June 30, 1999.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
36
<PAGE>
Enterprise High-Yield Bond Fund
Caywood-Scholl Capital Management
San Diego, California
Investment Management
Caywood-Scholl has been Fund Manager to the Enterprise High-Yield Bond Fund
since its inception in 1987. Caywood-Scholl manages approximately $1 billion for
institutional clients, and its normal investment minimum is $1 million.
Investment Objective
The objective of the Enterprise High-Yield Bond Fund is to seek maximum current
income.
Investment Strategies
The High-Yield Bond Fund invests primarily in high-yield, income-producing U.S.
corporate bonds rated B3 to Ba1 by Moody's Investors Service, Inc. ("Moody's")
or B- to BB+ by Standard & Poor's corporation ("S&P"), which are commonly known
as "junk bonds." The Fund's investments are selected by the Fund Manager after
examination of the economic outlook to determine those industries that appear
favorable for investment. Industries going through a perceived decline generally
are not candidates for selection. After the industries are selected, the Fund
Manager identifies bonds of issuers within those industries based on their
creditworthiness, their yields in relation to their credit and the relative
value in relation to the high-yield market. Companies near or in bankruptcy are
not considered for investment. The Fund does not purchase bonds which are rated
Ca or lower by Moody's or CC or lower by S&P or which, if unrated, in the
judgment of the Fund Manager have characteristics of such lower-grade bonds.
Should an investment be subsequently downgraded to Ca or lower or CC or lower,
the Fund Manager has discretion to hold or liquidate the security. Subject to
the restrictions described above, under normal circumstances, up to 20 percent
of the Fund's assets may include: (1) bonds rated Caa by Moody's or CCC by S&P;
(2) unrated debt securities which, in the judgment of the Fund Manager, have
characteristics similar to those described above; (3) convertible debt
securities; (4) puts, calls and futures as hedging devices; (5) foreign issuer
debt securities; and (6) short-term money market instruments, including
certificates of deposit, commercial paper, U.S. Government securities and other
income producing cash equivalents.
First Half 1999 Performance Review
Despite a modest rise in intermediate U.S. Treasury interest rates, high-yield
bonds have substantially outperformed most higher-grade fixed-income sectors.
The market's fundamentals continue to be overshadowed by weak technicals. Demand
for high-yield bonds, like most fixed-income securities, has slackened due to
investors' concern over rising U.S. Treasury rates. The good news is high-yield
valuations are attractive and fundamentals are sound. More specifically, strong
economic conditions have led to mostly positive earnings reports for high-yield
issuers. The pace of mergers and acquisitions continues to benefit certain
sectors of the market, such as telecommunications, due to the positive event
risk. Lastly, the bank loan market and the equity markets have added liquidity
to the marketplace, giving high-yield issuers financial flexibility. The single
troubling aspect of the market's fundamentals is the increasing default rate
which is reducing market liquidity for "problem" companies.
Future Investment Strategy
The high economic growth rate, coupled with very low inflation is making the
fundamental case for high-yield bonds very compelling for upper tier credits.
The Fund will remain broadly diversified with emphasis placed on non-cyclical
and higher growth industries such as telecommunications, cable and media. As
always, Caywood-Scholl will search for the best "risk adjusted relative value"
available in the marketplace.
The views expressed in this report reflect those of the Fund Manager only
through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
THE ENTERPRISE Group of Funds, Inc.
37
<PAGE>
ENTERPRISE HIGH-YIELD BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Corporate Bonds, Convertible
Securities, Common &
Preferred Stocks -- 88.50%
- --------------------------------------------------------------------------
Aerospace -- 0.91%
- --------------------------------------------------------------------------
BE Aerospace Inc. 9.50%, due 11/01/08 ...... $250,000 $ 252,500
Coltec Industries Inc. 7.50%,
due 04/15/08 ............................. 800,000 800,000
----------
1,052,500
Apparel & Textiles -- 0.79%
- --------------------------------------------------------------------------
Fruit of the Loom Inc. 8.875%,
due 04/15/06 ............................. 1,000,000 917,500
Automotive -- 2.27%
- --------------------------------------------------------------------------
Avis Rent a Car Inc. 11.00%,
due 05/01/09 ............................. 900,000 901,125
Budget Group Inc. 9.125%,
due 04/01/06 ............................. 750,000 701,250
Lear Corporation 7.96%, due 05/15/05 ....... 500,000 483,750
Sonic Automotive Inc. (Series B) 11.00%,
due 08/01/08 ............................. 550,000 543,125
----------
2,629,250
Banking -- 1.80%
- --------------------------------------------------------------------------
Bay View Capital Corporation
9.125%, due 08/15/07 ..................... 400,000 377,000
DVI Inc. 9.875%, due 02/01/04 .............. 350,000 340,375
Imperial Credit Industries Inc. (Series B)
9.875%, due 01/15/07 ..................... 700,000 558,250
Western Financial Savings Bank
Orange California 8.50%,
due 07/01/03 ............................. 450,000 401,625
Western Financial Savings Bank
Orange California 8.875%,
due 08/01/07 ............................. 500,000 408,750
----------
2,086,000
Broadcasting -- 4.56%
- --------------------------------------------------------------------------
Allbritton Communications Company
(Series B) 8.875%, due 02/01/08 .......... 400,000 389,000
Chancellor Media Corporation 9.00%,
due 10/01/08 ............................. 1,000,000 1,020,000
Fox Family Worldwide Inc. 0%,
due 11/01/07 (c) ......................... 750,000 473,438
Fox Family Worldwide Inc. 9.25%,
due 11/01/07 ............................. 750,000 695,625
Fox/Liberty Networks LLC 0%,
due 08/15/07 (c) ......................... 2,350,000 1,865,312
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Rogers Communications Inc. 8.875%,
due 07/15/07 ............................. $ 300,000 $ 302,250
Rogers Communications Inc. 9.125%,
due 01/15/06 ............................. 150,000 152,625
Sinclair Broadcast Group Inc. 8.75%,
due 12/15/07 ............................. 400,000 392,000
----------
5,290,250
Building & Construction -- 3.97%
- --------------------------------------------------------------------------
American Standard Inc. 7.375%,
due 02/01/08 ............................. 1,650,000 1,551,000
Building Materials Corporation America
(Series B) 7.75%, due 07/15/05 ........... 600,000 568,500
Building Materials Corporation America
(Series B) 8.00%, due 10/15/07 ........... 450,000 430,312
Nortek Inc. 8.875%, due 08/01/08 ........... 400,000 410,000
Nortek Inc. (Series B) 9.125%,
due 09/01/07 ............................. 1,000,000 995,000
Republic Group Inc. 9.50%,
due 07/15/08 ............................. 650,000 648,375
----------
4,603,187
Business Services -- 2.85%
- --------------------------------------------------------------------------
CEX Holdings Inc. 9.625%,
due 06/01/08 ............................. 850,000 796,875
Group Maintenance America
Corporation 9.75%, due 01/15/09 .......... 900,000 888,750
Integrated Electric Services Inc.
9.375%, due 02/01/09 ..................... 800,000 786,000
United Rentals Inc. 8.80%, due 08/15/08..... 600,000 588,750
United Rentals Inc. (Series B)
8.80%, due 08/15/08 ...................... 250,000 245,312
----------
3,305,687
Cable -- 6.79%
- --------------------------------------------------------------------------
Adelphia Communications Corporation
7.875%, due 05/01/09 ..................... 250,000 231,875
Adelphia Communications Corporation
(Series B) 10.50%, due 07/15/04 .......... 650,000 695,500
Bresnan Communications Group 0%,
due 02/01/09 (c) ......................... 300,000 195,375
Bresnan Communications Group 8.00%,
due 02/01/09 ............................. 250,000 246,875
Century Communications Corporation
9.50%, due 03/01/05 ...................... 200,000 207,000
Century Communications Corporation
(Series B) Zero Coupon, due 01/15/08...... 600,000 269,250
Charter Communications Holdings
8.25%, due 04/01/07 ...................... 1,750,000 1,675,625
Echostar Corporation 9.375%,
due 02/01/09 ............................. 2,500,000 2,550,000
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
38
<PAGE>
ENTERPRISE HIGH-YIELD BOND FUND --(Continued)
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Mediacom LLC/Mediacom Capital
Corporation (Series B) 8.50%, due
04/15/08 ............................... $ 650,000 $ 641,875
Telewest Communications 0%, due
04/15/09 (c) ........................... 1,750,000 1,165,937
---------
7,879,312
Chemicals -- 1.69%
- ------------------------------------------------------------------------
Huntsman Polymers Corporation
11.75%, due 12/01/04 ................... 250,000 271,250
Lyondell Chemical Company 9.625%,
due 05/01/07 ........................... 650,000 666,250
PCI Chemicals Canada Inc. 9.25%, due
10/15/07 ............................... 500,000 423,750
Pioneer Americas Acquisition
Corporation (Series B) 9.25%, due
06/15/07 ............................... 700,000 600,250
---------
1,961,500
Communications -- 3.59%
- ------------------------------------------------------------------------
Globalstar LP/Globalstar Capital
10.75%, due 11/01/04 ................... 250,000 166,875
Globalstar LP/Globalstar Capital
11.375%, due 02/15/04 .................. 900,000 618,750
Globalstar LP/Globalstar Capital
11.50%, due 06/01/05 ................... $ 250,000 168,750
Globalstar Telecommunications (Wts) (a)... 700 32,769
Iridium World Communications (Wts) (a).... 350 175
Level 3 Commuications Inc. 0%, due
12/01/08 (c) ........................... $ 750,000 462,188
Level 3 Communications Inc. 9.125%,
due 05/01/08 ........................... 950,000 935,750
Loral Space & Communication Ltd. 0%,
due 01/15/07 (c) ....................... $1,450,000 770,312
Loral Space & Communication Ltd.
(Wts) (a) .............................. 850 7,276
Loral Space & Communications Ltd.
9.50%, due 01/15/06 .................... $ 500,000 436,250
Qwest Communications International Inc.
(Series B) 0%, due 02/01/08 (c) ........ 750,000 559,688
---------
4,158,783
Consumer Products -- 4.01%
- ------------------------------------------------------------------------
Boyds Collection Ltd. 9.00%, due
05/15/08 ............................... 478,000 469,635
Chattem Inc. (Series B) 8.875%, due
04/01/08 ............................... 1,100,000 1,086,250
Corning Consumer Products Company
(Series B) 9.625%, due 05/01/08 ........ 400,000 363,500
French Fragrances Inc. (Series B)
10.375%, due 05/15/07 .................. 550,000 557,562
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
French Fragrances Inc. (Series D)
10.375%, due 05/15/07 .................. $ 150,000 $ 152,063
Revlon Consumer Products Corporation
8.625%, due 02/01/08 ................... 350,000 326,375
Scotts Company 8.625%, due 01/15/09 ...... 900,000 891,000
Sealy Mattress Company (Series B) 0%,
due 12/15/07 (c) ....................... 1,250,000 807,812
---------
4,654,197
Containers/Packaging -- 2.23%
- ------------------------------------------------------------------------
Huntsman Packaging Corporation
9.125%, due 10/01/07 ................... 650,000 641,875
Owens Illinois Inc. 7.35%, due 05/15/08... 750,000 711,578
Owens Illinois Inc. 8.10%, due 05/15/07... 100,000 99,562
Printpack Inc. (Series B) 9.875%,
due 08/15/04 ........................... 500,000 493,750
United States Can Corporation (Series B)
10.125%, due 10/15/06 .................. 600,000 633,750
---------
2,580,515
Crude & Petroleum -- 0.92%
- ------------------------------------------------------------------------
Clark Refining & Marketing Inc.
8.875%, due 11/15/07 ................... 250,000 213,438
Trizec Hahn Corporation (Series B)
10.875%, due 12/01/05 .................. 1,000,000 853,750
---------
1,067,188
Electronics -- 0.28%
- ------------------------------------------------------------------------
Axiohm Transaction Solutions 9.75%,
due 10/01/07 ........................... 500,000 328,750
Energy -- 2.61%
- ------------------------------------------------------------------------
Calpine Corporation 7.75%,
due 04/15/09 ........................... 1,750,000 1,671,250
CMS Energy Corporation 7.50%,
due 01/15/09 ........................... 250,000 237,477
Nuevo Energy Company (Series B)
8.875%, due 06/01/08 ................... 250,000 240,000
Ocean Energy Inc. (Series B) 8.375%,
due 07/01/08 ........................... 900,000 873,000
---------
3,021,727
Entertainment & Leisure -- 0.24%
- ------------------------------------------------------------------------
AMF Bowling Inc. Zero Coupon, due
05/12/18 ............................... 1,950,000 275,438
Finance -- 2.25%
- ------------------------------------------------------------------------
PDVSA Finance Ltd. 9.375%,
due 11/15/07 ........................... 750,000 725,917
RBF Finance Company 11.00%,
due 03/15/06 ........................... 1,850,000 1,882,375
---------
2,608,292
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
39
<PAGE>
ENTERPRISE HIGH-YIELD BOND FUND -- (Continued)
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Food & Beverages & Tobacco -- 1.33%
- -----------------------------------------------------------------------
Canandaigua Brands Inc. 8.50%,
due 03/01/09 ......................... $400,000 $ 388,000
NBTY Inc. (Series B) 8.625%,
due 09/15/07 ......................... 1,000,000 883,750
Twin Laboratories Inc. 10.25%,
due 05/15/06 ......................... 260,000 276,250
-----------
1,548,000
Gaming -- 2.76%
- -----------------------------------------------------------------------
Boyd Gaming Corporation 9.50%,
due 07/15/07 ......................... 500,000 498,750
Circus Circus Enterprises Inc. 9.25%,
due 12/01/05 ......................... 1,000,000 1,015,000
Empress Entertainment Inc. 8.125%,
due 07/01/06 ......................... 650,000 656,500
Mirage Resorts Inc. 6.75%,
due 08/01/07 ......................... 200,000 187,536
Mohegan Tribal Gaming Authority
8.75%, due 01/01/09 .................. 400,000 395,000
Trump Atlantic City Associates
11.25%, due 05/01/06 ................. 500,000 450,000
-----------
3,202,786
Health Care -- 4.49%
- -----------------------------------------------------------------------
Columbia/HCA Healthcare Corporation
6.91%, due 06/15/05 .................. 450,000 408,006
Columbia/HCA Healthcare Corporation
7.00%, due 07/01/07 .................. 550,000 478,968
Columbia/HCA Healthcare Corporation
7.15%, due 03/30/04 .................. 250,000 235,195
Columbia/HCA Healthcare Corporation
7.25%, due 05/20/08 .................. 250,000 218,965
Dade International Inc. (Series B)
11.125%, due 05/01/06 ................ 450,000 486,562
Fisher Scientific International Inc.
9.00%, due 02/01/08 .................. 900,000 852,750
Fisher Scientific International Inc.
9.00%, due 02/01/08 .................. 200,000 189,500
Maxxim Medical Inc. 10.50%,
due 08/01/06 ......................... 1,000,000 1,072,500
PHP Healthcare Corporation 6.50%,
due 12/15/02 (b) (d) ................. 800,000 8,000
Quest Diagnostics Inc. 10.75%,
due 12/15/06 ......................... 750,000 825,937
Tenet Healthcare Corporation 8.125%,
due 12/01/08 ......................... 450,000 432,986
-----------
5,209,369
Hotels & Restaurants -- 2.49%
- -----------------------------------------------------------------------
Foodmaker Corporation (Series B)
9.75%, due 11/01/03 .................. 350,000 361,435
Foodmaker Inc. 8.375%, due 04/15/08..... 1,000,000 980,000
Hammon (John Q.) Hotels 8.875%,
due 02/15/04 ......................... 300,000 279,000
Host Marriott LP 8.375%,
due 02/15/06 ......................... 500,000 481,250
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Perkins Family Restaurant (Series B)
10.125%, due 12/15/07 ................ $ 750,000 $ 789,375
-----------
2,891,060
Machinery -- 2.02%
- -----------------------------------------------------------------------
Applied Power Inc. 8.75%,
due 04/01/09 ......................... 850,000 822,375
Columbus McKinnon Corporation
8.50%, due 04/01/08 .................. 500,000 486,250
Navistar International Corporation
(Series B) 8.00%, due 02/01/08 ....... 1,000,000 1,035,000
-----------
2,343,625
Medical Services -- 1.22%
- -----------------------------------------------------------------------
Quest Diagnostic Inc. 9.875%,
due 07/01/09 ......................... 650,000 653,250
Triad Hospitals Holdings Inc. 11.00%,
due 05/15/09 ......................... 750,000 763,125
-----------
1,416,375
Metals & Mining -- 3.20%
- -----------------------------------------------------------------------
AK Steel Corporation 7.875%,
due 02/15/09 ......................... 1,350,000 1,306,125
AK Steel Corporation 9.125%,
due 12/15/06 ......................... 500,000 513,750
Kaiser Aluminum & Chemical
Corporation (Series D) 10.875%,
due 10/15/06 ......................... 250,000 260,625
Oregon Steel Mills Inc. 11.00%,
due 06/15/03 ......................... 450,000 478,125
WCI Steel Inc. (Series B) 10.00%,
due 12/01/04 ......................... 900,000 915,750
WHX Corporation 10.50%,
due 04/15/05 ......................... 250,000 236,875
-----------
3,711,250
Oil Services -- 0.86%
- -----------------------------------------------------------------------
Gulf Canada Resources Ltd.
8.35%, due 08/01/06 .................. 400,000 396,236
Gulf Canada Resources Ltd.
8.375%, due 11/15/05 ................. 600,000 595,500
-----------
991,736
Paper & Forest Products -- 0.73%
- -----------------------------------------------------------------------
Buckeye Cellulose Corporation
8.50%, due 12/15/05 .................. 550,000 554,125
Buckeye Technologies Inc. 8.00%, due
10/15/10 ............................. 300,000 290,250
-----------
844,375
Pharmaceuticals -- 2.04%
- -----------------------------------------------------------------------
Biovail Corporation International New
10.875%, due 11/15/05 ................ 1,300,000 1,330,875
King Pharmaceutical Inc. 10.75%, due
02/15/09 ............................. 1,000,000 1,032,500
-----------
2,363,375
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
40
<PAGE>
ENTERPRISE HIGH-YIELD BOND FUND --(Continued)
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Printing & Publishing -- 1.78%
- ----------------------------------------------------------------------------
Nebraska Book Company Inc. 8.75%,
due 02/15/08 .............................. $ 750,000 $ 690,938
TV Guide Inc. 8.125%, due 03/01/09 .......... 1,450,000 1,373,875
-----------
2,064,813
Real Estate -- 0.66%
- ----------------------------------------------------------------------------
Crown Castle International Corporation
0%, due 11/15/07 (c) ...................... 1,100,000 763,125
Restaurants -- 0.14%
- ----------------------------------------------------------------------------
CKE Restaurants Inc. 9.125%,
due 05/01/09 .............................. 175,000 167,300
Retail -- 1.79%
- ----------------------------------------------------------------------------
Cole National Group Inc. 8.625%,
due 08/15/07 .............................. 1,100,000 1,020,250
Nine West Group Inc. 5.50%,
due 07/15/03 .............................. 250,000 250,313
Randalls Food Markets Inc. (Series B)
9.375%, due 07/01/07 ...................... 750,000 800,625
-----------
2,071,188
Telecommunications -- 13.97%
- ----------------------------------------------------------------------------
21st Century Telecom Group Inc.
12.25%, due 02/15/08 (c) .................. 950,000 400,188
CCPR Services Inc. 10.00%,
due 02/01/07 .............................. 800,000 884,000
Crown Castle International Corporation
9.00%, due 05/15/11 ....................... $ 500,000 490,000
E. Spire Communications Inc. (Wts) (a) ...... 800 45,947
Firstworld Communications Inc.
0%, due 04/15/08 (c) ...................... $ 500,000 270,625
Firstworld Communications Inc.
(Wts) (a) (d) ............................. 500 --
Flag Ltd. 8.25%, due 01/30/08 ............... $ 500,000 471,250
Global Crossings Holdings Ltd. 9.625%,
due 05/15/08 .............................. 350,000 371,875
ICG Holdings Inc. 0%, due 05/01/06 (c) ...... 1,000,000 798,750
ICG Services Inc. 0%, due 02/15/08 (c) ...... 200,000 126,000
ICO Global Communication
15.00%, due 08/01/05 ...................... 250,000 102,500
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Intermedia Communications Inc.
(Series B) 0%, due 07/15/07 (c) ........... $ 350,000 $ 249,813
Intermedia Communications Inc.
(Series B) 8.50%, due 01/15/08 ............ 600,000 549,000
McLeodUSA Inc. 0%, due 03/01/07 (c) ......... 1,000,000 761,250
McLeodUSA Inc. 8.125%,
due 02/15/09 .............................. 750,000 703,125
Metromedia Fiber Network Inc.
10.00%, due 11/15/08 ...................... 500,000 513,750
Metronet Communications Corporation
0%, due 11/01/07 (c) ...................... $ 500,000 401,250
Metronet Communications Corporation
(Wts) (a) ................................. 150 16,347
Nextel Communications Inc. 0%,
due 09/15/07 (c) .......................... $1,550,000 1,133,437
Nextel Communications Inc. 0%,
due 10/31/07 (c) .......................... 650,000 452,562
Nextel Communications Inc. 0%,
due 02/15/08 (c) .......................... 650,000 449,313
Nextlink Communications Inc. 0%,
due 04/15/08 (c) .......................... 1,250,000 726,562
Nextlink Communications Inc. 10.75%,
due 11/15/08 .............................. 900,000 922,500
Omnipoint Corporation (Series A)
11.625%, due 08/15/06 ..................... 250,000 258,125
Orange 8.00%, due 08/01/08 .................. $ 750,000 716,250
Pagemart (Wts) (a) .......................... 3,450 14,842
Pagemart Nationwide Inc. .................... 1,750 13,234
Panamsat Corporation 6.375%,
due 01/15/08 .............................. $ 300,000 275,079
Pathnet Inc. 12.25%, due 04/15/08 ........... $ 250,000 144,375
Pathnet Inc. (Wts.) (a) (d) ................. 250 --
RCN Corporation 0%, due 10/15/07 (c) ........ $ 600,000 402,750
RCN Corporation (Series B) 0%,
due 02/15/08 (c) .......................... 550,000 348,563
Rogers Cantel Inc. 8.80%,
due 10/01/07 .............................. 800,000 808,000
Telecorp PCS Inc. 0%, due 04/15/09 (c) ...... 1,000,000 558,750
Teligent Inc. 11.50%, due 12/01/07 .......... 250,000 256,250
Winstar Communications Inc. 10.00%,
due 03/15/08 .............................. 950,000 838,375
Winstar Equipment Corporation 12.50%,
due 03/15/04 .............................. 700,000 731,500
-----------
16,206,137
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
41
<PAGE>
ENTERPRISE HIGH-YIELD BOND FUND -- (Continued)
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Textiles -- 3.51%
- -------------------------------------------------------------------------
Phillips Van Heusen Corporation
9.50%, due 05/01/08 ................... $1,000,000 $ 1,001,250
Pillowtex Corporation (Series B)
9.00%, due 12/15/07 ................... 450,000 433,125
Polymer Group Inc. (Series B) 9.00%,
due 07/01/07 .......................... 550,000 537,625
Westpoint Stevens Inc. 7.875%,
due 06/15/08 .......................... 1,250,000 1,209,375
William Carter Company (Series A)
10.375%, due 12/01/06 ................. 850,000 890,375
------------
4,071,750
Transportation -- 0.86%
- -------------------------------------------------------------------------
Northwest Airlines Inc. 8.52%,
due 04/07/04 .......................... 750,000 733,425
TBS Shipping International Ltd.
10.00%, due 05/01/05 (b) .............. 750,000 260,625
------------
994,050
Travel/Entertainment/Leisure -- 0.21%
- -------------------------------------------------------------------------
International Game Technology
7.875%, due 05/15/04 .................. 250,000 245,000
Utilities -- 1.11%
- -------------------------------------------------------------------------
Aes Corporation 9.50%, due 06/01/09...... 500,000 513,750
Ferrellgas Partners LP (Series B)
9.375%, due 06/15/06 .................. 450,000 448,875
Midland Cogeneration Venture LP
(Series C-91) 10.33%, due 07/23/02..... 149,511 157,921
Midland Funding Corporation
(Series C-94) 10.33%, due 07/23/02..... 160,991 170,047
------------
1,290,593
Waste Management -- 1.08%
- -------------------------------------------------------------------------
Allied Waste North America 7.625%,
due 01/01/06 .......................... 750,000 697,500
Allied Waste North America Inc.
7.875%, due 01/01/09 .................. 600,000 555,750
------------
1,253,250
Wireless Communications -- 0.49%
- -------------------------------------------------------------------------
Clearnet Communications Inc. 0%,
due 05/01/09 (c) ...................... 1,000,000 563,750
------------
Total Corporate Bonds, Convertible
Securities, Common & Preferred Stocks
(Identified cost $107,806,399 )........................ 102,632,983
- -----------------------------------------------------------------------
Foreign Bonds -- 7.01%
- -------------------------------------------------------------------------
Apparel & Textiles -- 0.19%
- -------------------------------------------------------------------------
Reliance Industries Ltd.
8.25%, due 01/15/27 ................... 250,000 223,935
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Basic Industries -- 1.52%
- -------------------------------------------------------------------------
Cemex 12.75%, due 07/15/06 .............. $1,150,000 $ 1,302,375
Cemex International Capital Inc.
9.66%, due 12/29/49 ................... 500,000 463,750
------------
1,766,125
Broadcasting -- 1.63%
- -------------------------------------------------------------------------
Grupo Televisa 11.875%, due 05/15/06..... 300,000 308,250
Grupo Televisa (Series A) 11.375%,
due 05/15/03 .......................... 700,000 714,644
Satelites Mexicanos 10.125%,
due 11/01/04 .......................... 800,000 638,000
TV Azteca 10.50%, due 02/15/07 .......... 300,000 228,750
------------
1,889,644
Containers/Packaging -- 0.72%
- -------------------------------------------------------------------------
Vicap 11.375%, due 05/15/07 ............. 900,000 828,000
Energy -- 0.42%
- -------------------------------------------------------------------------
Petroleos Mexicanos 8.85%,
due 09/15/07 .......................... 250,000 222,500
YPF Sociedad Anonima 9.125%,
due 02/24/09 .......................... 250,000 263,505
------------
486,005
Government Bond -- 1.78%
- -------------------------------------------------------------------------
Republic of Argentina 12.125%,
due 02/25/19 .......................... 250,000 224,688
Republic of Argentina Global (Series
BGL4) 11.00%, due 10/09/06 ............ 1,150,000 1,067,312
Republic of Turkey 10.00%,
due 09/19/07 .......................... 250,000 230,085
United Mexican States 8.625%,
due 03/12/08 .......................... 300,000 277,500
United Mexican States 10.375%,
due 02/17/09 .......................... 250,000 265,937
------------
2,065,522
Paper & Forest Products -- 0.56%
- -------------------------------------------------------------------------
Indah Kiat Finance Mauritius Ltd.
10.00%, due 07/01/07 .................. 350,000 244,125
Indah Kiat International Finance Co.
(Series B) 11.875%, due 06/15/02 ...... 150,000 124,358
Pindo Deli Finance Mauritius Ltd.
10.75%, due 10/01/07 .................. 400,000 281,000
------------
649,483
Transportation -- 0.19%
- -------------------------------------------------------------------------
TFM 10.25%, due 06/15/07 ................ 250,000 216,875
------------
Total Foreign Bonds
(Identified cost $8,820,121)............................. 8,125,589
- -------------------------------------------------------------------------
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
42
<PAGE>
ENTERPRISE HIGH-YIELD BOND FUND -- (Continued)
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
U.S. Treasury Notes -- 0.42%
- -----------------------------------------------------------------------
U.S. Treasury Note 5.50%,
due 05/15/09 ......................... $ 500,000 $ 489,225
------------
Total U.S. Treasury Notes
(Identified cost $481,764)........................... 489,225
- ---------------------------------------------------------------------
Repurchase Agreement -- 3.27%
- -----------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement 4.25%, due 07/01/99
Collateral: U.S. Treasury Note
$3,790,000, 7.50% due 10/31/99
Value $3,913,432...................... 3,785,000 3,785,000
------------
Total Repurchase Agreement
(Identified cost $3,785,000)......................... 3,785,000
- ---------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Total Investments
(Identified cost $120,893,284)......................... $115,032,797
Other Assets Less Liabilities -- 0.80% ................ 933,473
------------
Net Assets -- 100% .................................. $115,966,270
- ---------------------------------------------------------------------
</TABLE>
(a) Non-income producing security.
(b) In bankruptcy; Fund has ceased accrual of interest. (c) Step Bond -- coupon
increases periodically based upon predetermined
schedule.
(d) Security is fair valued at June 30, 1999.
(Wts) Warrants
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
43
<PAGE>
Enterprise Tax-Exempt Income Fund
MBIA Capital Management Corp.
Armonk, New York
Investment Management
MBIA Capital Management Corp. became manager of the Enterprise Tax-Exempt
Income Fund on January 1, 1998. MBIA Capital Management Corp. manages
approximately $26 billion for institutional clients, and its normal investment
minimum is $10 million.
Investment Objective
The investment objective of the Enterprise Tax-Exempt Income Fund is to seek a
high level of current income exempt from federal income tax, with consideration
given to preservation of principal.
Investment Strategies
The Tax-Exempt Income Fund invests primarily in investment grade, tax-exempt
municipal securities. The issuers of these securities may be located in any
state, territory or possession of the United States. In selecting investments
for the Fund, the Fund Manager tries to limit risk as much as possible. The Fund
Manager analyzes municipalities, their credit risk, market trends and investment
cycles. The Fund Manager attempts to identify and invest in municipal issuers
with improving credit and avoid those with deteriorating credit. The Fund
anticipates that its average weighted maturity will range from 10 to 25 years.
The Fund Manager will actively manage the Fund, adjusting the average Fund
maturity and utilizing futures contracts and options on futures as a defensive
measure according to its judgment of anticipated interest rates. During periods
of rising interest rates and falling prices, the Fund Manager may adopt a
shorter weighted average maturity to cushion the effect of bond price declines
on the Fund's net asset value. When rates are falling and prices are rising, the
Fund Manager may adopt a longer weighted average maturity. The Fund may also
invest up to 20 percent of its net assets in cash, cash equivalents and debt
securities, the interest from which may be subject to federal income tax.
Investments in taxable securities will be limited to investment grade corporate
debt securities and U.S. Government securities. The Fund will not invest more
than 20 percent of its net assets in municipal securities, the interest on which
is subject to the federal alternative minimum tax.
First Half 1999 Performance Review
For the first half of 1999, the total return of the Lehman Brothers Municipal
Bond Index was -0.90 percent. Tax-exempt interest rates rose 40 to 70 basis
points across the yield curve, largely during the second quarter. The worst
performing spot on the yield curve, year-to-date, was the 10-year sector, where
interest rates rose 70 basis points and total return performance registered
- -1.73 percent.
Tax-exempt/Treasury yield ratios changed dramatically during the first six
months of 1999, as the backup in the tax-exempt rates lagged that of the
Treasury market. Long-term Treasury interest rates increased 90 basis points
during the first half of the year. Despite falling to 92.7 percent from 101.3
percent at year-end, the long insured tax-exempt/Treasury ratio remains
relatively high versus its nine-year average of 87.1 percent.
Year-to-date tax-exempt issuance is down about 23 percent from a year ago but
still higher than the 10-year average new issue volume. New money issuance has
declined about 12 percent, while refundings are off about 35 percent. The
decline in new money issuance is likely attributable to the "burn out" of
publicly funded infrastructure improvements that have been triggered by the
prolonged strength of the U.S. economy.
As interest rates rose during the first half of the year, and the prospect of a
tightening move by the Fed increased, MBIA maintained a conservative investment
focus for the Fund. MBIA reduced the Fund's duration to 7.26 (versus 7.21 for
the Lehman Municipal Bond Index) from 7.65 at year-end, while striving to
maintain an average coupon advantage over the index (5.55 percent versus 5.48
percent for the Index). Tax loss swapping was emphasized during the second
quarter in order to increase the portfolio's yield, minimize capital gains
distributions and control the Fund's exposure to minimum tax issues.
The Fund's over-exposure to the revenue sector (the number two performing sector
for the period) had a positive impact on performance. This was offset by the
Fund's underweight in pre-refunded bonds (4.5 percent versus 12.97 percent),
THE ENTERPRISE Group of Funds, Inc.
44
<PAGE>
which was the number one performing sector, and the Fund's overweight in
long-duration insured paper (43.1 percent versus 40.73 percent) which was the
worst performing sector for the period. The Fund's "bulleted" curve positioning
also negatively impacted performance as the 8-12 year sector of the curve, where
the Fund was over-allocated versus the Lehman Index by 10 percent, was the worst
performing sector for the period.
Future Investment Strategy
Despite richening versus their Treasury counterparts during the first half of
this year, MBIA continues to expect tax-exempts to remain historically
attractive to Treasuries for the balance of 1999. With further rate hikes by the
Fed a possibility before year-end, MBIA will continue to emphasize cautious
credit, structure and curve allocations for the Fund.
Depending on an investor's specific situation, distributions from this Fund may,
at times, be subject to ordinary income, alternative minimum and/or capital
gains taxes.
The views expressed in this report reflect those of the Fund Manager only
through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
THE ENTERPRISE Group of Funds, Inc.
45
<PAGE>
ENTERPRISE TAX-EXEMPT INCOME FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Municipal Bonds -- 98.52%
- ----------------------------------------------------------------------
Alabama -- 0.90%
- ----------------------------------------------------------------------
Alabama Housing Finance Authority
Single Family Mortgage Revenue
Home Mortgage GNMA Collateral
Series A-1 6.55% due 10/01/14 .......... $ 250,000 $ 261,950
Arizona -- 3.58%
- ----------------------------------------------------------------------
Central Arizona Water Conservation
Revenue Refunding Central Arizona
Project Series A 5.30% due 11/01/04 1,000,000 1,036,630
Florida -- 1.06%
- ----------------------------------------------------------------------
Broward County, Broward Recovery
Revenue 7.95% due 12/01/08 ............. 295,000 307,765
Georgia -- 3.32%
- ----------------------------------------------------------------------
Atlanta Downtown Development
Authority Underground Atlanta
Project 6.25% due 10/01/12 ............. 500,000 531,110
Georgia Municipal Electric Authority
Power Revenue Series V 6.30% due
01/01/05 ............................... 400,000 431,632
----------
962,742
Hawaii -- 3.39%
- ----------------------------------------------------------------------
Honolulu Hawaii City & County
Series C (FGIC Insured) 5.125%
due 07/01/14 ........................... 1,000,000 980,800
Illinois -- 3.34%
- ----------------------------------------------------------------------
Chicago Illinois Sales Tax Revenue
(FGIC Insured) 5.25% due 01/01/20 ...... 1,000,000 968,240
Indiana -- 0.35%
- ----------------------------------------------------------------------
Jasper County Indiana Pollution Control
Revenue Refunding Northern Indiana
Public Service Series C 3.90% due
04/01/19 (v) ........................... 100,000 100,000
Iowa -- 3.24%
- ----------------------------------------------------------------------
Iowa Finance Authority Hospital Facility
Revenue Iowa Health Systems Series A
(MBIA Insured) 5.125% due 01/01/28 1,000,000 936,910
Louisiana -- 0.51%
- ----------------------------------------------------------------------
Louisiana State Offshore Term Authority
Deepwater Port Revenue Series E
7.60% due 09/01/10 ..................... 140,000 147,227
Massachusetts -- 2.78%
- ----------------------------------------------------------------------
Massachusetts State Housing Finance
Agency Revenue Residential FNMA
Collateral-Series A 6.90% due
11/15/24 ............................... 750,000 803,512
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Michigan -- 7.18%
- ----------------------------------------------------------------------
Michigan State Building Authority
Revenue Series I 6.40% due 10/01/04 .... $1,000,000 $1,060,430
Michigan Strategic Fund Variable
Refunding Dow Chemical Company
Project 3.40% due 05/01/09 (v) ......... 100,000 100,000
Wayne Charter County Michigan
Airport Revenue Detroit Metropolitan
Wayne County Airport Series B (MBIA
Insured) 5.00% due 12/01/28 1,000,000 918,060
----------
2,078,490
Minnesota -- 3.43%
- ----------------------------------------------------------------------
Southern Minnesota Municipal Power
Agency Supply Series A (AMBAC
Insured) 5.00% due 01/01/11 ............ 1,000,000 991,840
Missouri -- 7.85%
- ----------------------------------------------------------------------
Kansas City Missouri Municipal
Assistance Corporation Refunding
Leasehold Roe Bartle Series A (MBIA
Insured) 5.00% due 04/15/04 ............ 1,220,000 1,246,450
Missouri State Health & Educational
Facilities Authority St. Louis
University 5.50% due 10/01/15 .......... 1,000,000 1,026,860
----------
2,273,310
Nebraska -- 7.40%
- ----------------------------------------------------------------------
American Public Energy Agency
Nebraska Public Gas Agency Project
Series A (AMBAC Insured) 5.25% due
06/01/11 ............................... 1,115,000 1,126,351
Omaha Public Power District Nebraska
Electric Revenue Series D 5.10% due
02/01/08 ............................... 1,000,000 1,017,480
----------
2,143,831
Nevada -- 3.03%
- ----------------------------------------------------------------------
Clark County School District Series A
(MBIA Insured) 7.00% due 06/01/11 750,000 877,927
New York -- 19.49%
- ----------------------------------------------------------------------
Municipal Assistance Corporation New
York Series J 5.75% due 07/01/03 ....... 700,000 733,677
Nassau County New York General
Improvement Series B (AMBAC
Insured) 5.25% due 06/01/08 ............ 1,200,000 1,229,328
New York State Local Government
Assistance 7.00% due 04/01/21
(Prerefunded 04/01/01 at 102) .......... 200,000 213,614
New York State Power Authority
Revenue & General Prerefunded Series
CC 5.00% due 01/01/09 (Prerefunded
1/01/03 at 102) ........................ 1,020,000 1,058,780
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
46
<PAGE>
ENTERPRISE TAX-EXEMPT INCOME FUND --(Continued)
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
New York, New York Series J (MBIA
Insured) 5.50% due 05/15/16 ......... $1,000,000 $ 1,009,100
Triborough Bridge & Tunnel Authority,
New York General Purpose Series A
6.00% due 01/01/10 .................. 1,300,000 1,397,955
-----------
5,642,454
Oklahoma -- 5.46%
- --------------------------------------------------------------------
Tulsa, Oklahoma General Obligation
Bonds 6.30% due 06/01/17 ............ 1,500,000 1,579,875
Oregon -- 3.44%
- --------------------------------------------------------------------
Port Portland Oregon Series A 4.40%
due 03/01/04 ........................ 1,000,000 996,620
Texas -- 15.43%
- --------------------------------------------------------------------
Houston Texas Prerefunded Series C
6.00% due 03/01/05 (Prerefunded
3/01/02 at 100) ..................... 140,000 145,827
Houston Texas Unrefunded Bal. Ser. C
6.00% due 03/01/05 .................. 360,000 383,890
San Antonio Texas Electric & Gas
Revenue Refunding Series A 5.25%
due 02/01/13 ........................ 500,000 499,355
San Antonio Texas Independent School
District (Public School
Fund-Guaranteed Insured) 5.125%
due 08/15/22 ........................ 1,000,000 949,970
Texas State Refunding Public Finance
Authority 5.50% due 10/01/06 ........ 1,000,000 1,051,650
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Texas State Department Housing
Community Affairs Home Mortgage
Revenue GNMA Collateral Series A
6.95% due 07/01/23 .................. $ 380,000 $ 400,094
Texas Tech University Revenues
Refunding & Improvement Financing
Systems 3Rd Series (AMBAC Insured)
5.375% due 02/15/17 ................. 1,000,000 1,037,910
-----------
4,468,696
Utah -- 3.34%
- --------------------------------------------------------------------
Utah County Utah Hospital Revenue
IHC Health Services Incorporated
(MBIA Insured) 5.25% due 08/15/21 ... 1,000,000 965,690
-----------
Total Municipal Bonds
(Identified Cost $28,374,559)........................ 28,524,509
- --------------------------------------------------------------------
Total Investments
(Identified cost $28,374,559).....................................
$28,524,509
Other Assets Less Liabilities -- 1.48% .............. 428,135
-----------
Net Assets -- 100% .................................. $28,952,644
- --------------------------------------------------------------------
</TABLE>
(v) Variable interest rate security; Interest rate is as of June 30, 1999.
(AMBAC) American Bond Assurance Corp.
(FGIC) Financial Guaranty Insurance Corp.
(MBIA) Municipal Bond Insurance Association.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
47
<PAGE>
Enterprise Managed Fund
OpCap Advisors, Inc.
New York, New York
Investment Management
OpCap Advisors, a wholly owned subsidiary of Oppenheimer Capital, became Fund
Manager to the Enterprise Managed Fund on October 1, 1994. Oppenheimer Capital
manages approximately $60 billion for institutional clients, and its normal
investment minimum is $20 million.
Investment Objective
The objective of the Enterprise Managed Fund is to seek growth of capital over
time.
Investment Strategies
The Managed Fund invests in a diversified portfolio of common stocks, bonds and
cash equivalents. The allocation of the Fund's assets among the different types
of permitted investments will vary from time to time based upon the Fund
Manager's evaluation of economic and market trends and its perception of the
relative values available from such types of securities at any given time. There
is neither a minimum nor a maximum percentage of the Fund's assets that may, at
any given time, be invested in any specific types of investments. However, the
Fund invests primarily in equity securities at times when the Fund Manager
believes that the best investment values are available in the equity markets.
The Fund may invest almost all of its assets in high-quality short-term money
market and cash equivalent securities when the Fund Manager deems it advisable
to preserve capital. Consequently, while the Fund will earn income to the extent
it is invested in bonds or cash equivalents, the Fund does not have any specific
income objective. The bonds in which the Fund may invest will normally be
investment grade intermediate to long-term U.S. Government and corporate debt.
First Half 1999 Performance Review
Value stocks came back to life in the first half of 1999. Value stocks include
those judged to be trading at market prices well below the inherent value of the
business, while growth stocks include those believed to have excellent long-term
earnings growth prospects. After an extended period in which stock market gains
were driven by a limited number of technology and large cap growth issues,
market leadership broadened to include undervalued stocks with strong business
fundamentals of the type owned by the Fund.
Despite their gains in the second quarter, the types of value stocks in which
the Fund invests continues to trade at a significant discount to large-cap
growth stocks and the market in general. OpCap believes this bodes well for its
value style in the months ahead.
Future Investment Strategy
OpCap continues to look for -- and find -- great companies with strong,
sustainable cash flows; high competitive barriers; and rational managements with
proven track records who are dedicated to shareholder value.
OpCap believes a long-term perspective and emphasis on buying superior
undervalued businesses provide a competitive advantage as the market moves away
from highly priced growth stocks toward a renewed recognition of the enduring
value of a company's earnings, cash flow and competitiveness.
The views expressed in this report reflect those of the Fund Manager only
through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
THE ENTERPRISE Group of Funds, Inc.
48
<PAGE>
ENTERPRISE MANAGED FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 81.69%
- -----------------------------------------------------------------------
Aerospace -- 3.16%
- -----------------------------------------------------------------------
Boeing Company .......................... 312,400 $ 13,804,175
Banking -- 9.60%
- -----------------------------------------------------------------------
BankBoston Corporation .................. 145,900 7,459,137
M & T Bank Corporation .................. 18,500 10,175,000
Wells Fargo & Company ................... 570,000 24,367,500
------------
42,001,637
Broadcasting -- 6.44%
- -----------------------------------------------------------------------
Chancellor Media Corporation (a) ........ 90,000 4,961,250
News Corporation Ltd. (ADR) ............. 378,600 11,949,562
Time Warner Inc. ........................ 153,300 11,267,550
------------
28,178,362
Chemicals -- 6.30%
- -----------------------------------------------------------------------
Du Pont (E. I.) De Nemours
& Company ............................. 275,000 18,785,937
Monsanto Company ........................ 222,200 8,763,013
------------
27,548,950
Computer Hardware -- 1.16%
- -----------------------------------------------------------------------
Compaq Computer Corporation ............. 213,400 5,054,913
Computer Software -- 4.91%
- -----------------------------------------------------------------------
Cadence Design Systems Inc. (a) ......... 173,000 2,205,750
Computer Associates International Inc. 350,000 19,250,000
------------
21,455,750
Conglomerates -- 4.59%
- -----------------------------------------------------------------------
Minnesota Mining & Manufacturing
Company ............................... 160,000 13,910,000
Textron Inc. ............................ 75,000 6,173,438
------------
20,083,438
Finance -- 8.45%
- -----------------------------------------------------------------------
Citigroup Inc. .......................... 600,000 28,500,000
Household International Inc. ............ 178,500 8,456,437
------------
36,956,437
Food & Beverages & Tobacco -- 3.07%
- -----------------------------------------------------------------------
Diageo (ADR) ............................ 312,300 13,428,900
Hotels & Restaurants -- 6.42%
- -----------------------------------------------------------------------
McDonald's Corporation .................. 680,000 28,092,500
Insurance -- 1.29%
- -----------------------------------------------------------------------
ACE Ltd. ................................ 200,000 5,650,000
Machinery -- 2.57%
- -----------------------------------------------------------------------
Caterpillar Inc. ........................ 187,100 11,226,000
Manufacturing -- 2.79%
- -----------------------------------------------------------------------
ITT Industries Inc. ..................... 320,000 12,200,000
Misc. Financial Services -- 5.22%
- -----------------------------------------------------------------------
Freddie Mac ............................. 393,800 22,840,400
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Property-Casualty Insurance -- 2.85%
- -----------------------------------------------------------------------
XL Capital Ltd. (Class A) ............... 220,810 $ 12,475,765
Paper & Forest Products -- 1.68%
- -----------------------------------------------------------------------
Champion International
Corporation ........................... 153,500 7,348,813
Pharmaceuticals -- 2.09%
- -----------------------------------------------------------------------
American Home Products
Corporation ........................... 158,600 9,119,500
Printing & Publishing -- 1.54%
- -----------------------------------------------------------------------
Donnelley (R. R.) & Sons Company ........ 181,600 6,730,550
Telecommunications -- 5.33%
- -----------------------------------------------------------------------
Motorola Inc. ........................... 105,000 9,948,750
Sprint Corporation ...................... 253,000 13,361,562
------------
23,310,312
Transportation -- 2.23%
- -----------------------------------------------------------------------
UAL Corporation (a) ..................... 150,000 9,750,000
------------
Total Common Stocks
(Identified cost $281,691,957).......................... 357,256,402
- -----------------------------------------------------------------------
U.S. Treasury Notes -- 9.41%
- -----------------------------------------------------------------------
U.S. Treasury Note 6.50% due
05/15/05 .............................. $40,000,000 41,128,000
------------
Total U.S. Treasury Notes
(Identified cost $42,637,500).......................... 41,128,000
- -----------------------------------------------------------------------
Commercial Paper -- 5.70%
- -----------------------------------------------------------------------
American Express Credit
Corporation, 5.12% due 07/28/99 ....... 10,000,000 9,961,600
Ford Motor Credit Company
4.98% due 07/19/99 .................... 15,000,000 14,962,650
------------
Total Commercial Paper
(Identified cost $24,924,250)........................... 24,924,250
- -----------------------------------------------------------------------
Short-Term Government Securities -- 3.42%
- -----------------------------------------------------------------------
Federal National Mortgage
Association Discount Note,
4.89% due 07/20/99 .................... 15,000,000 14,961,288
------------
Total Short-Term Government Securities
(Identified cost $14,961,288)........................... 14,961,288
- -----------------------------------------------------------------------
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
49
<PAGE>
ENTERPRISE MANAGED FUND --(Continued)
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Repurchase Agreement -- 0.81%
- -------------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement, 4.25% due 07/01/99
Collateral: U.S. Treasury Bond
$3,820,000, 3.625% due 04/15/28
Value $3,665,010 ....................... $3,560,000 $ 3,560,000
------------
Total Repurchase Agreement
(Identified cost $3,560,000).......................... 3,560,000
- ----------------------------------------------------------------------
Total Investments
(Identified cost $367,774,995)........................ $441,829,940
Other Assets Less Liabilities -- (1.03)% ............. (4,495,610)
------------
Net Assets -- 100% ................................... $437,334,330
- ----------------------------------------------------------------------
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipt.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
50
<PAGE>
Enterprise Money Market Fund
Enterprise Capital Management, Inc.
Atlanta, Georgia
Investment Management
Enterprise Capital Management, Inc., which provides mutual fund investment
advisory services for The Enterprise Group of Funds, is a member of The MONY
Group, Inc. (NYSE:MNY) and has managed the Enterprise Money Market Fund since
May 1, 1992.
Investment Objective
The objective of the Enterprise Money Market Fund is the highest possible level
of current income consistent with the preservation of capital and liquidity.
Investment Strategies
The Money Market Fund invests in a diversified portfolio of high quality
dollar-denominated money market instruments, which present minimal credit risks
in the judgment of the Fund Manager. The Fund Manager actively manages the
Fund's average maturity based on current interest rates and its outlook of the
market.
First Half 1999 Performance Review
During the first half of 1999, U.S. financial markets have gradually regained a
measure of stability clearly lacking in the second half of 1998. The equity
markets made new highs while the fixed-income markets adjusted to the widely
anticipated and telegraphed (since the Federal Reserve's tightening bias adopted
at the May 18 Federal Open Market Committee ("FOMC" meeting) 0.25 percent
increase in the federal funds rate at the June 29-30 FOMC meeting. The U.S.
Treasury market spent much of this time in retreat as the long bond's yield
moved above 6 percent for the first time since May 1998. In like fashion, yields
on money market securities generally increased about 0.25 percent during the
past few months.
The Fed felt compelled to increase interest rates based on the continued buoyant
performance of the U.S. economy despite the relative absence of inflationary
signs. The Fed's implicit "taking back" some or all of last year's cumulative
0.75 percent easing is on the minds of some market participants. The current
estimate of first quarter real GDP is 4.1 percent with the second quarter
tracking similarly, a level not likely to provide comfort to Federal Reserve
Board members wary of falling behind the curve in addressing above-trend
economic growth and inevitable pressures leading to an uptick in inflation.
Strength in U.S. retail sales, equity markets, labor markets, etc. provided
sufficient cover for the Fed to raise interest rates.
Future Investment Strategy
Accompanying the rate increase was a move by the FOMC to remove the tightening
bias from its policy directive, going to a neutral stance on near-term
prospective interest rate moves. There has been much debate as to the
implications of the bias removal, but it seems that, presented with further
evidence that the U.S. economy refuses to glide toward a desired 3-3.5 percent
real GDP path, the Fed will not hesitate to move interest rates up again in the
third quarter. The fixed-income markets are pricing in at least one more Fed
tightening in 1999. Such a move at the August 24 Fed meeting is possible. To
avoid falling behind the inflation curve, the Fed may err on the side of
preemptively tightening in the months ahead. The Fed could move sooner rather
than later: it may likely find itself in the position of providing increased
liquidity in the fourth quarter to address Y2K distortions just beginning to
become evident in the markets. Thus, there may soon come a time to lock in
attractive money market yields extending into the year 2000, but we have not yet
reached that point.
Going forward, the average maturity of the Fund will be adjusted selectively to
capitalize on opportunities where the Fund will be rewarded for duration
extension. The Fund is being managed to react quickly to the change of investor
expectations. Short maturity investments allow flexibility, while some longer
maturity investments lock in yields.
An investment in the Enterprise Money Market Fund is not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other government agency.
Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the Fund.
The views expressed in this report reflect those of the Fund Manager only
through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
THE ENTERPRISE Group of Funds, Inc.
51
<PAGE>
ENTERPRISE MONEY MARKET FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Commercial Paper -- 94.55%
- ----------------------------------------------------------------------
American Express Credit Corporation,
4.80% due 07/06/99 .................. $1,500,000 $1,499,000
American Express Credit Corporation,
4.83% due 07/12/99 .................. 1,500,000 1,497,786
American Express Credit Corporation,
4.84% due 07/09/99 .................. 1,300,000 1,298,602
American Express Credit Corporation,
4.86% due 07/06/99 .................. 1,400,000 1,399,055
American Express Credit Corporation,
4.94% due 07/19/99 .................. 3,500,000 3,491,355
Associates Corporation of North
America, 4.85% due 07/23/99 ......... 1,500,000 1,495,554
Associates Corporation of North
America, 4.85% due 07/28/99 ......... 1,000,000 996,363
Associates Corporation of North
America, 5.10% due 09/24/99 ......... 6,500,000 6,421,729
Bank of America
4.87% due 08/25/99 .................. 1,000,000 992,560
Capital One Funding Corporation
5.11% due 03/01/17 .................. 2,100,000 2,100,000
Ciesco LP
4.82% due 07/07/99 .................. 8,000,000 7,993,573
CIT Group Holdings Inc.
4.84% due 07/13/99 .................. 6,000,000 5,990,320
Coca Cola Enterprises Inc.
4.83% due 08/27/99 .................. 7,500,000 7,442,644
Commercial Credit Company
4.85% due 07/07/99 .................. 1,000,000 999,192
Conagra Inc.
5.09% due 07/02/99 .................. 1,688,000 1,687,761
Countrywide Home Loans Inc.
4.92% due 07/08/99 .................. 2,200,000 2,197,895
Countrywide Home Loans Inc.
4.98% due 07/23/99 .................. 7,000,000 6,978,697
CSX Corporation
5.09% due 07/09/99 .................. 1,500,000 1,498,303
Edison Asset Securitization
4.81% due 08/30/99 .................. 2,400,000 2,380,760
Edison Asset Securitization
4.85% due 07/01/99 .................. 2,900,000 2,900,000
Edison Asset Securitization
4.98% due 07/30/99 .................. 1,000,000 995,988
Enterprise Funding Corporation
4.91% due 07/14/99 .................. 1,000,000 998,227
Enterprise Funding Corporation
5.00% due 07/22/99 .................. 2,027,000 2,021,088
Enterprise Funding Corporation
5.05% due 08/19/99 .................. 1,000,000 993,126
Enterprise Funding Corporation
5.07% due 08/03/99 .................. 2,400,000 2,388,846
Enterprise Funding Corporation
5.10% due 07/21/99 .................. 1,002,000 999,161
Enterprise Funding Corporation
5.10% due 07/28/99 .................. 1,194,000 1,189,433
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Finova Capital Corporation
4.88% due 08/27/99 .................. $4,500,000 $4,465,230
Finova Capital Corporation
5.10% due 08/09/99 .................. 4,500,000 4,475,138
Ford Motor Credit Company
4.82% due 07/09/99 .................. 1,000,000 998,929
Ford Motor Credit Company
5.20% due 09/23/99 .................. 2,500,000 2,469,667
General Electric Capital Corporation,
4.81% due 07/07/99 .................. 5,000,000 4,995,992
General Electric Capital Corporation,
4.81% due 07/09/99 .................. 1,700,000 1,698,183
General Motors Acceptance
Corporation, 4.81% due 07/12/99 ..... 2,000,000 1,997,061
General Motors Acceptance
Corporation, 4.87% due 07/12/99 ..... 2,900,000 2,895,685
General Motors Acceptance
Corporation, 5.01% due 07/22/99 ..... 4,000,000 3,988,310
Golden Funding Corporation
5.08% due 08/03/99 .................. 9,000,000 8,958,090
Goldman Sachs Group
5.08% due 07/15/99 .................. 4,000,000 4,000,000
Goldman Sachs Group LP
5.40% due 02/25/00 .................. 2,000,000 2,000,000
Heller Financial Inc.
5.00% due 07/20/99 .................. 3,500,000 3,490,764
Heller Financial Inc.
5.05% due 07/27/99 .................. 5,000,000 4,981,764
Houston Industries Finance Company,
5.08% due 07/14/99 .................. 1,500,000 1,497,248
J P Morgan & Company Inc.
4.85% due 08/20/99 .................. 6,875,000 6,828,689
Lehman Brothers Holdings Inc.
6.15% due 03/15/00 .................. 3,000,000 3,006,702
MCI Worldcom Inc.
5.02% due 07/13/99 .................. 1,500,000 1,497,490
Merrill Lynch & Company Inc.
4.80% due 07/06/99 .................. 1,000,000 999,333
Montauk Funding Corporation
4.89% due 08/06/99 .................. 2,500,000 2,487,775
Montauk Funding Corporation
4.91% due 07/20/99 .................. 5,000,000 4,987,043
Norfolk Southern Corporation
5.20% due 07/22/99 .................. 1,100,000 1,096,663
Sears Roebuck Acceptance
Corporation, 4.85% due 07/09/99 ..... 3,000,000 2,996,767
Sears Roebuck Acceptance
Corporation, 5.13% due 07/20/99 ..... 4,000,000 3,989,170
Transamerica Commercial Finance
5.00% due 09/09/99 .................. 6,200,000 6,139,722
Transamerica Finance Corporation
Discount Cp, 5.10% due 08/27/99 ..... 2,400,000 2,380,620
TRW Incorporated
5.23% due 07/13/99 .................. 1,000,000 998,257
Windmill Funding Corporation
4.85% due 07/06/99 .................. 2,500,000 2,498,316
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
52
<PAGE>
ENTERPRISE MONEY MARKET FUND --(Continued)
- --------------------------------------------------------------------------------
Portfolio of Investments (Unaudited)
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Windmill Funding Corporation
4.88% due 07/01/99 ..................... $1,000,000 $ 1,000,000
Windmill Funding Corporation
4.88% due 08/25/99 ..................... 2,000,000 1,985,088
Windmill Funding Corporation
4.92% due 07/12/99 ..................... 1,000,000 998,497
Windmill Funding Corporation
4.92% due 07/15/99 ..................... 2,000,000 1,996,173
------------
Total Commercial Paper
(Identified cost $169,645,384).......................... 169,645,384
- ------------------------------------------------------------------------
Federal Home Loan Banks -- 2.23%
- ---------------------------------------------------------------------------
Federal Home Loan Banks
5.00% due 02/10/00 ..................... 4,000,000 4,000,000
------------
Total Federal Home Loan Banks
(Identified cost $4,000,000)............................ 4,000,000
- ------------------------------------------------------------------------
Certificates of Deposit -- 2.79%
- ---------------------------------------------------------------------------
Union Bank Treasury Division
4.90% due 08/20/99 ..................... 5,000,000 5,000,000
------------
Total Certificates of Deposit
(Identified cost $5,000,000)............................ 5,000,000
- ------------------------------------------------------------------------
Asset-Backed Securities -- 2.23%
- ---------------------------------------------------------------------------
Asset Backed Securities
Investment Trust Series 1997-E,
4.988% due 07/15/99 .................... 1,000,000 1,000,000
Syndicated Loan Funding Trust
Series 1998 7 Senior Secured Note
5.138% due 07/15/99 .................... 3,000,000 3,000,000
------------
Total Asset-Backed Securities
(Identified cost $4,000,000)............................ 4,000,000
- ------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Repurchase Agreement -- 0.90%
- ---------------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement, 4.25% due 07/01/99
Collateral: U.S. Treasury Bond
$1,745,000, 3.625% due 04/15/28
Value $1,719,997 ....................... $1,625,000 $ 1,625,000
------------
Total Repurchase Agreement
(Identified cost $1,625,000).............................. 1,625,000
- ---------------------------------------------------------------------------
Total Investments
(Identified cost $184,270,384)............................ $184,270,384
Other Assets Less Liabilities -- (2.70)% ............... (4,846,361)
------------
Net Assets -- 100% ....................................... $179,424,023
- ---------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
53
<PAGE>
Statements of Assets and Liabilities (Unaudited)
- --------------------------------------------------------------------------------
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth Fund Equity Fund
----------------- ---------------
<S> <C> <C>
Assets:
Investments at value $2,033,317,472 $21,508,031
Receivable for fund shares sold 10,898,769 65,095
Receivable for investments sold -- --
Dividends and interest receivable 1,172,520 17,302
Due from investment adviser -- 10,492
Forward currency contracts (net) receivable -- --
Cash and other assets 103,364 52,712
Total assets $2,045,492,125 $21,653,632
- -----------------------------------------------------------------------------------------------
Liabilities:
Payable for fund shares redeemed 5,717,766 14,886
Payable for investments purchased 14,966,289 387,752
Dividends and distributions payable -- 89
Investment advisory fees payable 1,188,217 12,764
Distribution fees payable 1,062,254 13,483
Accrued expenses and other liabilities 853,857 68,416
Total liabilities $ 23,788,383 $ 497,390
- -----------------------------------------------------------------------------------------------
Net assets $2,021,703,742 $21,156,242
Analysis of net assets
Paid-in capital 1,475,692,864 18,383,031
Undistributed (accumulated) net investment income (loss) (5,790,966) (10,410)
Undistributed (accumulated) net realized gain (loss) on
investments 49,924,105 507,923
Unrealized appreciation (depreciation) on investments and
foreign currency denominated amounts 501,877,739 2,275,698
Net assets $2,021,703,742 $21,156,242
- -----------------------------------------------------------------------------------------------
Class A: Net assets $1,080,036,412 $ 7,803,790
Shares outstanding 46,873,700 1,095,626
Net asset value and redemption price per share $ 23.04 $ 7.12
Sales charge per share $ 1.15 $ 0.36
Maximum offering price per share, including sales charge of
4.75% $ 24.19 $ 7.48
- -----------------------------------------------------------------------------------------------
Class B: Net assets $ 655,603,228 $11,108,940
Shares outstanding 29,147,005 1,573,099
Net asset value and offering price per share $ 22.49 $ 7.06
- -----------------------------------------------------------------------------------------------
Class C: Net assets $ 217,960,005 $ 2,156,800
Shares outstanding 9,573,763 305,299
Net asset value and offering price per share $ 22.77 $ 7.06
- -----------------------------------------------------------------------------------------------
Class Y: Net assets $ 68,104,097 $ 86,712
Shares outstanding 2,901,207 12,215
Net asset value, offering and redemption price per share $ 23.47 $ 7.10
- -----------------------------------------------------------------------------------------------
Investments at cost $1,531,439,733 $19,232,333
<CAPTION>
Growth Capital
and Income Equity Income Appreciation
Fund Fund Fund
--------------- ----------------- ---------------
<S> <C> <C> <C>
Assets:
Investments at value $105,090,273 $ 177,256,602 $171,675,754
Receivable for fund shares sold 942,615 320,709 1,347,076
Receivable for investments sold -- 286,529 --
Dividends and interest receivable 45,104 252,047 43,587
Due from investment adviser 3,141 -- --
Forward currency contracts (net) receivable -- -- --
Cash and other assets 29,341 26,661 49,342
Total assets $106,110,474 $ 178,142,548 $173,115,759
- ---------------------------------------------------------------------------------------------------------------
Liabilities:
Payable for fund shares redeemed 23,161 22,096 259,887
Payable for investments purchased 832,018 -- 1,623,150
Dividends and distributions payable -- 21,091 --
Investment advisory fees payable 60,291 107,613 98,748
Distribution fees payable 48,855 88,420 70,151
Accrued expenses and other liabilities 74,531 149,525 104,897
Total liabilities $ 1,038,856 $ 388,745 $ 2,156,833
- ---------------------------------------------------------------------------------------------------------------
Net assets $105,071,618 $ 177,753,803 $170,958,926
Analysis of net assets
Paid-in capital 79,371,624 123,665,607 96,065,097
Undistributed (accumulated) net investment income (loss) (82,961) 13,102 (909,991)
Undistributed (accumulated) net realized gain (loss) on
investments (198,713) 2,948,458 16,538,179
Unrealized appreciation (depreciation) on investments and
foreign currency denominated amounts 25,981,668 51,126,636 59,265,641
Net assets $105,071,618 $ 177,753,803 $170,958,926
- ---------------------------------------------------------------------------------------------------------------
Class A: Net assets $ 36,980,228 $ 122,969,892 $144,152,651
Shares outstanding 1,072,482 4,092,421 3,404,735
Net asset value and redemption price per share $ 34.48 $ 30.05 $ 42.34
Sales charge per share $ 1.72 $ 1.50 $ 2.11
Maximum offering price per share, including sales charge of
4.75% $ 36.20 $ 31.55 $ 44.45
- ---------------------------------------------------------------------------------------------------------------
Class B: Net assets $ 40,943,491 $ 45,906,549 $ 24,072,278
Shares outstanding 1,195,695 1,547,498 586,735
Net asset value and offering price per share $ 34.24 $ 29.67 $ 41.03
- ---------------------------------------------------------------------------------------------------------------
Class C: Net assets $ 6,697,867 $ 8,754,465 $ 2,483,540
Shares outstanding 195,526 293,568 59,352
Net asset value and offering price per share $ 34.26 $ 29.82 $ 41.84
- ---------------------------------------------------------------------------------------------------------------
Class Y: Net assets $ 20,450,032 $ 122,897 $ 250,457
Shares outstanding 589,347 4,094 5,874
Net asset value, offering and redemption price per share $ 34.70 $ 30.02 $ 42.64
- ---------------------------------------------------------------------------------------------------------------
Investments at cost $ 79,108,605 $ 126,129,966 $112,410,113
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
54
<PAGE>
<TABLE>
<CAPTION>
SMALL SMALL GLOBAL
COMPANY COMPANY VALUE INTERNATIONAL FINANCIAL GOVERNMENT
GROWTH FUND FUND GROWTH FUND SERVICES FUND SECURITIES FUND
- --------------- --------------- --------------- --------------- -----------------
<S> <C> <C> <C> <C>
$ 33,235,334 $214,447,989 $73,046,573 $ 14,220,431 $116,481,235
385,480 1,823,316 1,361,957 190,628 512,867
807,492 -- 1,427,933 -- --
-- 125,079 125,497 21,565 831,636
9,142 -- -- 11,196 5,805
-- -- 315,465 3,429 --
22,742 23,600 870,185 25,272 28,907
$ 34,460,190 $216,419,984 $77,147,610 $ 14,472,521 $117,860,450
- ------------------------------------------------------------------------------
14,672 165,131 25,625 14,207 28,707
238,100 2,084,938 122,151 45,344 --
-- 3,124 51,670 -- 490,099
26,025 123,423 51,559 9,611 57,886
14,829 120,237 31,405 4,552 57,097
55,988 160,745 1,284,911 77,892 87,358
$ 349,614 $ 2,657,598 $ 1,567,321 $ 151,606 $ 721,147
- ------------------------------------------------------------------------------
$ 34,110,576 $213,762,386 $75,580,289 $ 14,320,915 $117,139,303
28,448,437 186,653,537 65,802,411 12,437,140 123,675,674
(216,385) (541,095) (8,035) 111,425 (74,423)
(2,827,524) 9,752,811 6,529,276 101,607 (3,907,411)
8,706,048 17,897,133 3,256,637 1,670,743 (2,554,537)
$ 34,110,576 $213,762,386 $75,580,289 $ 14,320,915 $117,139,303
- ------------------------------------------------------------------------------
$ 11,101,175 $104,814,266 $41,389,927 $ 4,310,207 $ 73,037,921
430,480 11,958,169 2,201,902 669,073 6,182,336
$ 25.79 $ 8.77 $ 18.80 $ 6.44 $ 11.81
$ 1.29 $ 0.44 $ 0.94 $ 0.32 $ 0.59
$ 27.08 $ 9.21 $ 19.74 $ 6.76 $ 12.40
- ------------------------------------------------------------------------------
$ 11,544,541 $ 81,883,193 $16,258,198 $ 3,491,618 $ 32,414,895
455,388 9,582,887 879,934 545,262 2,745,294
$ 25.35 $ 8.54 $ 18.48 $ 6.40 $ 11.81
- ------------------------------------------------------------------------------
$ 3,042,445 $ 26,529,450 $ 3,906,959 $ 419,627 $ 4,409,985
119,564 3,044,172 209,736 65,444 373,404
$ 25.45 $ 8.71 $ 18.63 $ 6.41 $ 11.81
- ------------------------------------------------------------------------------
$ 8,422,415 $ 535,477 $14,025,205 $ 6,099,463 $ 7,276,502
324,608 59,909 744,585 945,005 616,162
$ 25.95 $ 8.94 $ 18.84 $ 6.45 $ 11.81
- ------------------------------------------------------------------------------
$ 24,529,286 $196,550,856 $70,103,272 $ 12,555,152 $119,035,772
<CAPTION>
High-Yield Tax-Exempt Money Market
Bond Fund Income Fund Managed Fund Fund
- --------------- ---------------- ----------------- -----------------
<C> <C> <C> <C>
$115,032,797 $ 28,524,509 $ 441,829,940 $ 184,270,384
417,254 61,634 494,896 322,179
216,451 -- -- --
2,575,022 448,523 494,949 292,386
10,012 9,346 -- --
-- -- -- --
26,536 64,921 42,178 92,646
$118,278,072 $ 29,108,933 $ 442,861,963 $ 184,977,595
- ------------------------------------------------------------------
138,645 4,000 688,883 4,739,995
1,197,449 -- 4,107,493 --
762,730 92,594 -- 678,317
57,462 12,090 266,793 54,339
62,071 13,753 206,247 --
93,445 33,852 258,217 80,921
$ 2,311,802 $ 156,289 $ 5,527,633 $ 5,553,572
- ------------------------------------------------------------------
$115,966,270 $ 28,952,644 $ 437,334,330 $ 179,424,023
123,251,861 28,468,313 344,348,777 179,424,023
-- -- 1,154,741 --
(1,425,104) 334,381 17,775,867 --
(5,860,487) 149,950 74,054,945 --
$115,966,270 $ 28,952,644 $ 437,334,330 $ 179,424,023
- ------------------------------------------------------------------
$ 70,190,955 $ 22,456,367 $ 168,811,606 $ 152,938,563
6,211,115 1,681,120 17,163,669 152,938,563
$ 11.30 $ 13.36 $ 9.84 $ 1.00
$ 0.56 $ 0.67 $ 0.49 --
$ 11.86 $ 14.03 $ 10.33 $ 1.00
- ------------------------------------------------------------------
$ 37,457,996 $ 5,171,910 $ 167,413,771 $ 17,464,175
3,315,077 387,343 17,234,165 17,464,175
$ 11.30 $ 13.35 $ 9.71 $ 1.00
- ------------------------------------------------------------------
$ 6,275,711 $ 1,260,954 $ 11,672,009 $ 5,959,435
555,282 94,386 1,202,310 5,959,435
$ 11.30 $ 13.36 $ 9.71 $ 1.00
- ------------------------------------------------------------------
$ 2,041,608 $ 63,413 $ 89,436,944 $ 3,061,850
180,678 4,749 9,081,155 3,061,850
$ 11.30 $ 13.35 $ 9.85 $ 1.00
- ------------------------------------------------------------------
$120,893,284 $ 28,374,559 $ 367,774,995 $ 184,270,384
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
55
<PAGE>
STATEMENTS OF OPERATIONS (UNAUDITED)
- --------------------------------------------------------------------------------
For the Six Months Ended June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY
GROWTH FUND FUND
--------------- -----------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends $ 5,373,789 $ 117,947(1)
Interest 2,790,389 51,940
Total 8,164,178 169,887
EXPENSES:
Investment advisory fees 6,516,439 69,681
Distribution fees, Class A 2,138,321 15,644
Distribution fees, Class B 2,723,975 48,588
Distribution fees, Class C 883,385 9,220
Transfer agent fees 1,102,641 64,270
Custodian and accounting fees 112,013 21,472
Audit and legal fees 56,222 11,161
Reports to shareholders 215,667 3,230
Registration fees 50,828 18,444
Directors' fees 5,812 1,795
Other expenses 149,841 2,663
Total expenses 13,955,144 266,168
Less: Expense reimbursement -- (85,871)
Total expenses, net of reimbursement 13,955,144 180,297
Net investment income (loss) (5,790,966) (10,410)
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on security transactions 65,033,232 426,952
Net realized gain (loss) on foreign currency transactions -- --
Net change in unrealized gain (loss) on investments and
foreign currency related transactions 92,736,517 1,423,228
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 157,769,749 1,850,180
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $151,978,783 $1,839,770
<CAPTION>
GROWTH EQUITY CAPITAL
AND INCOME INCOME APPRECIATION
FUND FUND FUND
----------------- ------------------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 400,708(1) $ 1,720,991(1) $ 163,313
Interest 148,879 152,306 110,014
Total 549,587 1,873,297 273,327
EXPENSES:
Investment advisory fees 290,598 602,388 570,412
Distribution fees, Class A 56,338 259,098 297,317
Distribution fees, Class B 143,504 190,180 91,641
Distribution fees, Class C 27,163 36,645 7,063
Transfer agent fees 100,878 153,718 140,036
Custodian and accounting fees 27,539 33,418 19,748
Audit and legal fees 11,905 15,915 15,308
Reports to shareholders 13,098 20,253 16,558
Registration fees 18,065 21,233 16,935
Directors' fees 1,855 2,057 1,395
Other expenses 6,242 6,697 6,905
Total expenses 697,185 1,341,602 1,183,318
Less: Expense reimbursement (63,358) (12,234) --
Total expenses, net of reimbursement 633,827 1,329,368 1,183,318
Net investment income (loss) (84,240) 543,929 (909,991)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on security transactions (200,064) 2,056,520 16,666,307
Net realized gain (loss) on foreign currency transactions -- -- --
Net change in unrealized gain (loss) on investments and
foreign currency related transactions 14,456,821 16,016,744 (1,262,883)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 14,256,757 18,073,264 15,403,424
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $14,172,517 $ 18,617,193 $ 14,493,433
</TABLE>
(1) Net of foreign taxes withheld of $339 for Equity, $2,383 for Growth and
Income, $4,300 for Equity Income, $518 for Small Company Growth, $99,468 for
International Growth, $11,297 for Global Financial Services, and $22,683 for
Managed.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
56
<PAGE>
<TABLE>
<CAPTION>
GLOBAL
SMALL SMALL FINANCIAL
COMPANY COMPANY INTERNATIONAL SERVICES
GROWTH FUND VALUE FUND GROWTH FUND FUND
- ---------------- -------------- ----------------- -----------------
<S> <C> <C> <C>
$ 40,927(1) $ 843,366 $ 700,111(1) $ 196,090(1)
23,460 259,194 36,745 5,560
64,387 1,102,560 736,856 201,650
143,798 646,459 312,219 46,839
19,956 192,323 90,727 6,039
46,388 338,011 80,045 11,105
13,111 94,945 18,359 1,445
73,823 274,808 113,633 31,344
19,681 15,637 108,380 29,331
11,363 14,661 12,947 10,059
6,045 25,349 11,699 1,362
16,444 25,030 15,979 23,500
1,795 1,421 1,863 2,506
1,444 15,011 2,367 1,774
353,848 1,643,655 768,218 165,304
(73,076) -- (9,746) (75,079)
280,772 1,643,655 758,472 90,225
(216,385) (541,095) (21,616) 111,425
2,217,976 9,244,636 10,291,508 126,000
-- -- (2,932,190) (32,573)
2,309,537 9,894,085 (6,505,826) 506,542
4,527,513 19,138,721 853,492 599,969
$4,311,128 $18,597,626 $ 831,876 $ 711,394
<CAPTION>
GOVERNMENT TAX-EXEMPT MONEY
SECURITIES HIGH-YIELD INCOME MANAGED MARKET
FUND BOND FUND FUND FUND FUND
- --------------- --------------- --------------- ------------------- ------------
<C> <C> <C> <C> <C>
$ -- $ 5,625 $ -- $ 2,600,304(1) $ --
3,831,056 5,515,963 741,096 1,936,782 4,394,955
3,831,056 5,521,588 741,096 4,537,086 4,394,955
341,965 352,598 73,561 1,597,033 306,542
164,160 162,603 52,931 374,683 --
148,710 184,688 24,097 798,983 --
19,460 31,496 5,077 57,972 --
99,676 110,510 32,003 377,625 119,354
29,472 35,537 16,997 43,834 26,258
14,094 12,466 10,069 28,579 9,039
17,557 18,620 4,382 60,799 15,864
14,764 18,627 14,815 27,211 24,537
1,955 1,965 1,795 2,665 2,236
7,678 3,925 1,588 12,961 10,365
859,491 933,035 237,315 3,382,345 514,195
(42,711) (54,734) (59,844) -- --
816,780 878,301 177,471 3,382,345 514,195
3,014,276 4,643,287 563,625 1,154,741 3,880,760
(18,093) (1,477,332) 227,944 12,612,132 --
-- -- -- -- --
(3,179,926) (959,378) (1,289,596) 11,769,087 --
(3,198,019) (2,436,710) (1,061,652) 24,381,219 --
$ (183,743) $ 2,206,577 $ (498,027) $ 25,535,960 $3,880,760
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
57
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH FUND
------------------------------------
(UNAUDITED)
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, 1999 1998
----------------- ------------------
<S> <C> <C>
From operations:
Net investment income (loss) $ (5,790,966) $ (7,737,334)
Net realized gain (loss) on investments 65,033,232 48,382,838
Net change in unrealized gain (loss) on investments 92,736,517 242,454,975
Increase (decrease) in net assets resulting from
operations 151,978,783 283,100,479
Distributions to shareholders from:
Net investment income, Class A -- (11,564)
Net investment income, Class B -- (417)
Net investment income, Class C -- (4,198)
Net investment income, Class Y -- (42)
Net realized gains on investments Class A -- (38,585,631)
Net realized gains on investments Class B -- (20,943,603)
Net realized gains on investments Class C -- (6,012,830)
Net realized gains on investments Class Y -- (2,811,699)
Total dividends and distributions to shareholders -- (68,369,984)
From capital share transactions:
Class A
Shares sold 373,031,370 475,086,024
Reinvestment of distributions -- 37,006,136
Shares redeemed (205,334,645) (240,646,180)
Net increase (decrease) - Class A 167,696,725 271,445,980
Class B
Shares sold 193,681,325 229,554,640
Reinvestment of distributions -- 20,187,422
Shares redeemed (30,953,926) (28,733,003)
Net increase (decrease) - Class B 162,727,399 221,009,059
Class C
Shares sold 88,176,490 99,187,822
Reinvestment of distributions -- 5,852,001
Shares redeemed (18,171,399) (12,495,435)
Net increase (decrease) - Class C 70,005,091 92,544,388
Class Y
Shares sold 11,466,241 31,656,834
Reinvestment of distributions -- 2,181,730
Shares redeemed (10,044,265) (28,103,666)
Net increase (decrease) - Class Y 1,421,976 5,734,898
Total increase (decrease) in net assets resulting from
capital share transactions 401,851,191 590,734,325
Total increase (decrease) in net assets 553,829,974 805,464,820
Net assets:
Beginning of period $1,467,873,768 $ 662,408,948
End of period $2,021,703,742 $1,467,873,768
<CAPTION>
EQUITY FUND GROWTH AND INCOME FUND
------------------------------ -------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
--------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ (10,410) $ 32,525 $ (84,240) $ 170,856
Net realized gain (loss) on investments 426,952 174,726 (200,064) 474,045
Net change in unrealized gain (loss) on investments 1,423,228 477,834 14,456,821 5,535,514
Increase (decrease) in net assets resulting from
operations 1,839,770 685,085 14,172,517 6,180,415
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income, Class A -- (23,216) -- (49,655)
Net investment income, Class B -- (10,634) -- (13,413)
Net investment income, Class C -- (1,711) -- (1,356)
Net investment income, Class Y -- (386) -- (107,244)
Net realized gains on investments Class A -- (25,454) -- (128,692)
Net realized gains on investments Class B -- (32,207) -- (168,132)
Net realized gains on investments Class C -- (5,525) -- (36,761)
Net realized gains on investments Class Y -- (218) -- (144,116)
Total dividends and distributions to shareholders -- (99,351) -- (649,369)
From capital share transactions:
CLASS A
Shares sold 2,032,072 4,275,470 18,560,184 13,648,983
Reinvestment of distributions -- 39,040 -- 174,612
Shares redeemed (1,641,940) (1,091,690) (2,892,526) (2,458,043)
Net increase (decrease) - Class A 390,132 3,222,820 15,667,658 11,365,552
CLASS B
Shares sold 2,876,106 9,402,016 16,643,383 18,581,974
Reinvestment of distributions -- 41,050 -- 173,334
Shares redeemed (1,476,097) (2,754,989) (2,820,004) (1,648,252)
Net increase (decrease) - Class B 1,400,009 6,688,077 13,823,379 17,107,056
CLASS C
Shares sold 831,120 1,411,627 3,725,957 4,168,315
Reinvestment of distributions -- 7,109 -- 36,716
Shares redeemed (360,830) (237,070) (2,675,812) (444,827)
Net increase (decrease) - Class C 470,290 1,181,666 1,050,145 3,760,204
CLASS Y
Shares sold 23,375 55,800 1,908,800 2,595,184
Reinvestment of distributions -- 68 -- 250,373
Shares redeemed -- -- (3,069,721) (2,482,459)
Net increase (decrease) - Class Y 23,375 55,868 (1,160,921) 363,098
Total increase (decrease) in net assets resulting from
capital share transactions 2,283,806 11,148,431 29,380,261 32,595,910
Total increase (decrease) in net assets 4,123,576 11,734,165 43,552,778 38,126,956
NET ASSETS:
Beginning of period $17,032,666 $ 5,298,501 $ 61,518,840 $23,391,884
End of period $21,156,242 $17,032,666 $105,071,618 $61,518,840
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
58
<PAGE>
<TABLE>
<CAPTION>
EQUITY INCOME FUND CAPITAL APPRECIATION FUND SMALL COMPANY GROWTH FUND SMALL COMPANY VALUE FUND
- -------------------------------- -------------------------------- ------------------------------ -------------------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31, ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998 JUNE 30, 1999 1998 JUNE 30, 1999 1998
- --------------- ---------------- --------------- ---------------- --------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 543,929 $ 1,650,992 $ (909,991) $ (1,336,298) $ (216,385) $ (348,252) $ (541,095) $ (732,234)
2,056,520 9,777,817 16,666,307 19,025,360 2,217,976 (4,822,173) 9,244,636 4,934,895
16,016,744 2,185,780 (1,262,883) 16,876,956 2,309,537 4,125,149 9,894,085 (888,315)
18,617,193 13,614,589 14,493,433 34,566,018 4,311,128 (1,045,276) 18,597,626 3,314,346
(475,500) (1,347,963) -- (3,981) -- -- -- (3,491)
(88,473) (250,476) -- (2,159) -- -- -- (2,710)
(16,231) (41,379) -- -- -- -- -- (883)
(736) (1,942) -- -- -- -- -- --
-- (7,896,363) -- (20,305,457) -- -- -- (2,153,716)
-- (2,412,973) -- (2,296,049) -- -- -- (1,656,937)
-- (397,433) -- (156,338) -- -- -- (365,249)
-- (8,549) -- (34,063) -- -- -- (7,161)
(580,940) (12,357,078) -- (22,798,047) -- -- -- (4,190,147)
10,662,427 19,311,952 43,241,470 35,319,635 4,115,023 6,801,056 49,998,438 81,669,430
458,179 8,929,816 -- 19,629,603 -- -- -- 2,070,187
(12,411,585) (16,538,197) (43,266,288) (47,296,498) (2,577,898) (2,975,141) (34,286,774) (49,169,722)
(1,290,979) 11,703,571 (24,818) 7,652,740 1,537,125 3,825,915 15,711,664 34,569,895
11,045,377 16,906,603 9,643,962 7,868,911 3,675,595 8,068,502 21,332,398 50,674,685
88,473 2,494,182 -- 2,237,821 -- -- -- 1,591,999
(3,264,391) (4,409,445) (2,006,722) (3,856,735) (2,326,253) (2,063,663) (8,491,784) (11,540,525)
7,869,459 14,991,340 7,637,240 6,249,997 1,349,342 6,004,839 12,840,614 40,726,159
5,428,520 4,251,624 1,950,103 917,554 1,032,659 2,206,846 12,866,984 12,908,849
16,231 420,408 -- 153,448 -- -- -- 352,181
(3,136,123) (746,044) (632,947) (161,592) (855,937) (506,686) (2,782,373) (1,644,958)
2,308,628 3,925,988 1,317,156 909,410 176,722 1,700,160 10,084,611 11,616,072
6,838 110,250 45,636 208,176 370,526 1,178,645 295,909 221,282
58 930 -- 15,972 -- -- -- 7,161
(9,764) -- (21,446) (18,086) (2,153,589) (5,183,044) (80,005) (78,860)
(2,868) 111,180 24,190 206,062 (1,783,063) (4,004,399) 215,904 149,583
8,884,240 30,732,079 8,953,768 15,018,209 1,280,126 7,526,515 38,852,793 87,061,709
26,920,493 31,989,590 23,447,201 26,786,180 5,591,254 6,481,239 57,450,419 86,185,908
$ 150,833,310 $ 118,843,720 $ 147,511,725 $ 120,725,545 $ 28,519,322 $ 22,038,083 $ 156,311,967 $ 70,126,059
$ 177,753,803 $ 150,833,310 $ 170,958,926 $ 147,511,725 $ 34,110,576 $ 28,519,322 $ 213,762,386 $ 156,311,967
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
59
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS--(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL FINANCIAL
INTERNATIONAL GROWTH FUND SERVICES FUND
-------------------------------- ---------------------------------
FOR THE PERIOD
(UNAUDITED) (UNAUDITED) OCTOBER 1, 1998
SIX MONTHS YEAR ENDED SIX MONTHS THROUGH
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
--------------- ---------------- --------------- -----------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ (21,616) $ 169,565 $ 111,425 $ 7,863
Net realized gain (loss) on investments 7,359,318 1,530,125 93,427 316
Net change in unrealized gain (loss) on investments (6,505,826) 6,756,237 506,542 1,164,201
Increase (decrease) in net assets resulting from operations 831,876 8,455,927 711,394 1,172,380
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income, Class A -- (108,820) -- --
Net investment income, Class B -- (1,058) -- --
Net investment income, Class C -- (2,049) -- --
Net investment income, Class Y -- (92,335) -- --
Net realized gains on investments Class A (649,089) (329,025) -- --
Net realized gains on investments Class B (264,279) (121,910) -- --
Net realized gains on investments Class C (63,091) (25,397) -- --
Net realized gains on investments Class Y (223,538) (102,033) -- --
Total dividends and distributions to shareholders (1,199,997) (782,627) -- --
From capital share transactions:
CLASS A
Shares sold 9,412,892 9,516,243 3,353,028 1,452,204
Reinvestment of distributions 616,409 422,857 -- --
Shares redeemed (9,906,332) (11,162,315) (639,399) (129,788)
Net increase (decrease) - Class A 122,969 (1,223,215) 2,713,629 1,322,416
CLASS B
Shares sold 4,167,119 12,740,631 2,736,546 1,150,088
Reinvestment of distributions 251,397 120,205 -- --
Shares redeemed (4,055,046) (8,121,910) (410,538) (190,737)
Net increase (decrease) - Class B 363,470 4,738,926 2,326,008 959,351
CLASS C
Shares sold 1,632,541 3,010,422 426,504 222,535
Reinvestment of distributions 56,984 24,651 -- --
Shares redeemed (1,257,823) (917,430) (237,133) (26,021)
Net increase (decrease) - Class C 431,702 2,117,643 189,371 196,514
CLASS Y
Shares sold 5,899,661 8,304,283 25,787 4,713,342
Reinvestment of distributions 223,537 194,336 -- --
Shares redeemed (5,435,581) (7,458,814) (9,277) --
Net increase (decrease) - Class Y 687,617 1,039,805 16,510 4,713,342
Total increase (decrease) in net assets resulting from
capital share transactions 1,605,758 6,673,159 5,245,518 7,191,623
Total increase (decrease) in net assets 1,237,637 14,346,459 5,956,912 8,364,003
NET ASSETS:
Beginning of period $74,342,652 $59,996,193 $ 8,364,003 $ --
End of period $75,580,289 $74,342,652 $14,320,915 $8,364,003
<CAPTION>
GOVERNMENT SECURITIES FUND
-------------------------------
(UNAUDITED)
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, 1999 1998
--------------- ---------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ 3,014,276 $ 5,388,020
Net realized gain (loss) on investments (18,093) 73,735
Net change in unrealized gain (loss) on investments (3,179,926) 754,081
Increase (decrease) in net assets resulting from operations (183,743) 6,215,836
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income, Class A (1,978,873) (3,896,434)
Net investment income, Class B (723,080) (936,305)
Net investment income, Class C (94,980) (83,616)
Net investment income, Class Y (217,343) (471,665)
Net realized gains on investments Class A -- --
Net realized gains on investments Class B -- --
Net realized gains on investments Class C -- --
Net realized gains on investments Class Y -- --
Total dividends and distributions to shareholders (3,014,276) (5,388,020)
From capital share transactions:
CLASS A
Shares sold 19,085,805 22,163,314
Reinvestment of distributions 1,306,686 2,999,537
Shares redeemed (16,944,215) (22,837,964)
Net increase (decrease) - Class A 3,448,276 2,324,887
CLASS B
Shares sold 10,794,784 25,436,261
Reinvestment of distributions 498,013 756,772
Shares redeemed (5,157,519) (11,444,391)
Net increase (decrease) - Class B 6,135,278 14,748,642
CLASS C
Shares sold 2,714,588 3,877,365
Reinvestment of distributions 74,577 79,085
Shares redeemed (1,348,820) (1,372,631)
Net increase (decrease) - Class C 1,440,345 2,583,819
CLASS Y
Shares sold 515,323 982,969
Reinvestment of distributions 182,006 467,956
Shares redeemed (496,464) (1,813,505)
Net increase (decrease) - Class Y 200,865 (362,580)
Total increase (decrease) in net assets resulting from
capital share transactions 11,224,764 19,294,768
Total increase (decrease) in net assets 8,026,745 20,122,584
NET ASSETS:
Beginning of period $109,112,558 $ 88,989,974
End of period $117,139,303 $109,112,558
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
60
<PAGE>
<TABLE>
<CAPTION>
HIGH-YIELD BOND FUND TAX-EXEMPT INCOME FUND
- -------------------------------- ------------------------------
(UNAUDITED) (UNAUDITED)
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 1998 JUNE 30, 1999 1998
- --------------- ---------------- --------------- --------------
<S> <C> <C> <C>
$ 4,643,287 $ 7,868,188 $ 563,625 $ 1,170,489
(1,477,332) 1,471,176 227,944 746,552
(959,378) (7,542,908) (1,289,596) (320,248)
2,206,577 1,796,456 (498,027) 1,596,793
(2,926,343) (5,459,924) (463,447) (1,024,552)
(1,393,166) (2,042,690) (81,611) (128,996)
(236,965) (273,307) (17,147) (16,647)
(86,813) (92,256) (1,420) (293)
-- (997,754) -- (524,341)
-- (480,676) -- (97,566)
-- (74,900) -- (16,735)
-- (26,418) -- (1,473)
(4,643,287) (9,447,925) (563,625) (1,810,603)
10,575,565 26,180,156 6,191,256 4,758,439
1,893,332 5,184,552 291,354 1,239,726
(13,460,316) (20,189,403) (6,900,468) (5,829,298)
(991,419) 11,175,305 (417,858) 168,867
8,360,822 26,716,825 1,638,587 2,501,000
883,430 1,974,137 54,090 188,983
(6,484,723) (10,886,369) (791,504) (1,073,717)
2,759,529 17,804,593 901,173 1,616,266
3,252,831 5,863,205 667,572 731,438
161,016 291,593 12,155 28,617
(2,389,738) (1,836,334) (151,872) (157,608)
1,024,109 4,318,464 527,855 602,447
207,033 1,250,831 -- 66,447
71,398 119,053 299 402
(223,538) (52,838) -- --
54,893 1,317,046 299 66,849
2,847,112 34,615,408 1,011,469 2,454,429
410,402 26,963,939 (50,183) 2,240,619
$ 115,555,868 $ 88,591,929 $ 29,002,827 $ 26,762,208
$ 115,966,270 $ 115,555,868 $ 28,952,644 $ 29,002,827
<CAPTION>
MANAGED FUND MONEY MARKET FUND
-------------------------------- -----------------------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
SIX MONTHS SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED ENDED DECEMBER 31, ENDED DECEMBER 31,
JUNE 30, 1999 JUNE 30, 1999 1998 JUNE 30, 1999 1998
- --------------- --------------- ---------------- ----------------- -----------------
<S> <C> <C> <C> <C>
$ 4,643,287 $ 1,154,741 $ 1,920,876 $ 3,880,760 $ 5,409,072
(1,477,332) 12,612,132 30,494,153 -- --
(959,378) 11,769,087 (10,504,129) -- --
2,206,577 25,535,960 21,910,900 3,880,760 5,409,072
(2,926,343) -- (885,601) (3,381,780) (4,735,359)
(1,393,166) -- (147,987) (296,228) (392,136)
(236,965) -- (43,801) (132,084) (138,096)
(86,813) -- (849,714) (70,668) (143,481)
-- -- (10,259,117) -- --
-- -- (9,542,938) -- --
-- -- (692,449) -- --
-- -- (5,205,913) -- --
(4,643,287) -- (27,627,520) (3,880,760) (5,409,072)
10,575,565 21,923,946 44,993,325 309,495,742 413,364,732
1,893,332 -- 10,727,403 2,663,195 4,556,487
(13,460,316) (38,155,591) (36,345,519) (299,710,524) (345,896,926)
(991,419) (16,231,645) 19,375,209 12,448,413 72,024,293
8,360,822 17,834,503 66,722,575 25,020,656 32,792,113
883,430 -- 9,333,309 217,617 351,316
(6,484,723) (21,334,238) (21,471,933) (17,921,359) (28,976,415)
2,759,529 (3,499,735) 54,583,951 7,316,914 4,167,014
3,252,831 2,663,618 10,395,540 14,495,897 15,657,662
161,016 -- 707,800 79,878 112,867
(2,389,738) (3,337,757) (2,469,630) (13,296,588) (12,111,247)
1,024,109 (647,139) 8,633,710 1,279,187 3,659,282
207,033 11,650,367 30,057,893 166,529 2,877,556
71,398 -- 6,055,002 57,212 131,097
(223,538) (16,820,096) (26,931,170) (574,198) (2,296,440)
54,893 (5,169,729) 9,181,725 (350,457) 712,213
2,847,112 (25,575,248) 91,774,595 20,694,057 80,562,802
410,402 (39,288) 86,057,975 20,694,057 80,562,802
$ 115,555,868 $ 437,373,618 $ 351,315,643 $ 158,729,966 $ 78,167,164
$ 115,966,270 $ 437,334,330 $ 437,373,618 $ 179,424,023 $ 158,729,966
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
61
<PAGE>
ENTERPRISE GROWTH FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
A Annualized.
B Not annualized.
C Total return does not include one time sales charge.
D Total return does not include contingent deferred sales charge.
E Effective September 1, 1995, ratio includes expenses paid indirectly.
F Based on average monthly shares outstanding for the period.
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE GROWTH FUND (CLASS A) JUNE 30, 1999
- --------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 21.07
Net Investment Income (Loss) (0.05)(F)
Net Realized and Unrealized Gain (Loss) on
Investments 2.02
---------
Total from Investment Operations 1.97
---------
Dividends from Net Investment Income --
Distributions from Capital Gains --
---------
Total Distributions --
---------
Net Asset Value End of Period $ 23.04
---------
Total Return(C) 9.35%(B)
Net Assets End of Period (in thousands) $1,080,037
Ratio of Expenses to Average Net Assets 1.39%(A)
Ratio of Expenses to Average Net Assets (Excluding
Waivers) 1.39%(A)
Ratio of Net Investment Income (Loss) to Average
Net Assets (0.46)%(A)
Ratio of Net Investment Income (Loss) to Average
Net Assets (Excluding Waivers) (0.46)%(A)
Portfolio Turnover Rate 17%
<CAPTION>
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------
ENTERPRISE GROWTH FUND (CLASS A) 1998 1997 1996 1995 1994
- --------------------------------------------------- ------------- ------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 16.91 $ 13.10 $ 10.44 $ 7.76 $ 8.26
Net Investment Income (Loss) (0.11)(F) (0.07) (0.04) (0.03) (0.02)
Net Realized and Unrealized Gain (Loss) on
Investments 5.31 4.23 3.44 3.13 (0.06)
------- ------- ------- ------- -------
Total from Investment Operations 5.20 4.16 3.40 3.10 (0.08)
------- ------- ------- ------- -------
Dividends from Net Investment Income -- -- -- -- --
Distributions from Capital Gains (1.04) (0.35) (0.74) (0.42) (0.42)
------- ------- ------- ------- -------
Total Distributions (1.04) (0.35) (0.74) (0.42) (0.42)
------- ------- ------- ------- -------
Net Asset Value End of Period $ 21.07 $ 16.91 $ 13.10 $ 10.44 $ 7.76
------- ------- ------- ------- -------
Total Return(C) 30.94% 31.76% 32.60% 39.98% (0.99)%
Net Assets End of Period (in thousands) $827,567 $424,280 $196,752 $122,559 $88,375
Ratio of Expenses to Average Net Assets 1.48% 1.43%(E) 1.53%(E) 1.60% 1.56%
Ratio of Expenses to Average Net Assets (Excluding
Waivers) 1.48% 1.43%(E) 1.53%(E) 1.60% 1.56%
Ratio of Net Investment Income (Loss) to Average
Net Assets (0.58)% (0.55)% (0.39)% (0.35)% (0.30)%
Ratio of Net Investment Income (Loss) to Average
Net Assets (Excluding Waivers) (0.58)% (0.55)% (0.39)% (0.35)% (0.30)%
Portfolio Turnover Rate 28% 22% 30% 45% 65%
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) YEAR ENDED DECEMBER 31,
SIX MONTHS ENDED ----------------------------------------
ENTERPRISE GROWTH FUND (CLASS B) JUNE 30, 1999 1998 1997 1996
- ------------------------------------------------------------- ------------------ ------------- ------------- ------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 20.62 $ 16.66 $ 12.97 $ 10.41
Net Investment Income (Loss) (0.11)(F) (0.21)(F) (0.11) (0.06)
Net Realized and Unrealized Gain (Loss) on Investments 1.98 5.21 4.15 3.36
-------- ------- -------- -------
Total from Investment Operations 1.87 5.00 4.04 3.30
-------- ------- -------- -------
Dividends from Net Investment Income -- -- -- --
Distributions from Capital Gains -- (1.04) (0.35) (0.74)
-------- ------- -------- -------
Total Distributions -- (1.04) (0.35) (0.74)
-------- ------- -------- -------
Net Asset Value End of Period $ 22.49 $ 20.62 $ 16.66 $ 12.97
-------- ------- -------- -------
Total Return(D) 9.07%(B) 30.20% 31.15% 31.73%
Net Assets End of Period (in thousands) $655,603 $446,473 $166,932 $36,483
Ratio of Expenses to Average Net Assets 1.95%(A) 2.03% 1.98%(E) 2.10%(E)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.95%(A) 2.03% 1.98%(E) 2.10%(E)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.00)%(A) (1.13)% (1.10)% (0.96)%
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (1.00)%(A) (1.13)% (1.10)% (0.96)%
Portfolio Turnover Rate 17% 28% 22% 30%
<CAPTION>
FOR THE PERIOD
5/1/95
ENTERPRISE GROWTH FUND (CLASS B) THROUGH 12/31/95
- ------------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 8.69
Net Investment Income (Loss) (0.02)
Net Realized and Unrealized Gain (Loss) on Investments 2.16
---------
Total from Investment Operations 2.14
---------
Dividends from Net Investment Income --
Distributions from Capital Gains (0.42)
---------
Total Distributions (0.42)
---------
Net Asset Value End of Period $ 10.41
---------
Total Return(D) 24.66%(B)
Net Assets End of Period (in thousands) $ 4,572
Ratio of Expenses to Average Net Assets 2.15%(A)
Ratio of Expenses to Average Net Assets(Excluding Waivers) 2.15%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.82)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (0.82)%(A)
Portfolio Turnover Rate 45%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
62
<PAGE>
ENTERPRISE GROWTH FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE GROWTH FUND (CLASS C) JUNE 30, 1999
- --------------------------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 20.87
Net Investment Income (Loss) (0.11)(F)
Net Realized and Unrealized Gain (Loss) on Investments 2.01
--------
Total from Investment Operations 1.90
--------
Dividends from Net Investment Income --
Distributions from Capital Gains --
--------
Total Distributions --
--------
Net Asset Value End of Period $ 22.77
--------
Total Return(D) 9.10%(B)
Net Assets End of Period (in thousands) $217,960
Ratio of Expenses to Average Net Assets 1.95%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.95%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.00)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) (1.00)%(A)
Portfolio Turnover Rate 17%
<CAPTION>
FOR THE PERIOD
YEAR ENDED 5/1/97
ENTERPRISE GROWTH FUND (CLASS C) DECEMBER 31, 1998 THROUGH 12/31/97
- --------------------------------------------------------------------------------- ------------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 16.85 $ 14.11
Net Investment Income (Loss) (0.21)(F) (0.06)
Net Realized and Unrealized Gain (Loss) on Investments 5.27 3.15
------- ---------
Total from Investment Operations 5.06 3.09
------- ---------
Dividends from Net Investment Income -- --
Distributions from Capital Gains (1.04) (0.35)
------- ---------
Total Distributions (1.04) (0.35)
------- ---------
Net Asset Value End of Period $ 20.87 $ 16.85
------- ---------
Total Return(D) 30.22% 21.91%(B)
Net Assets End of Period (in thousands) $133,194 $ 26,601
Ratio of Expenses to Average Net Assets 2.04% 1.97%(A)(E)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.04% 1.97%(A)(E)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.13)% (1.10)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) (1.13)% (1.10)%(A)
Portfolio Turnover Rate 28% 22%(A)
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) YEAR ENDED DECEMBER 31, FOR THE PERIOD
SIX MONTHS ENDED --------------------------- 8/8/96
ENTERPRISE GROWTH FUND (CLASS Y) JUNE 30, 1999 1998 1997 THROUGH 12/31/96
- ------------------------------------------------------------- ------------------ ------------ ------------ -----------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 21.41 $ 17.02 $ 13.12 $ 11.96
Net Investment Income (Loss) --(F) (0.02)(F) (0.02) --
Net Realized and Unrealized Gain (Loss) on Investments 2.06 5.45 4.27 1.90
-------- ------- ------- --------
Total from Investment Operations 2.06 5.43 4.25 1.90
-------- ------- ------- --------
Dividends from Net Investment Income -- -- -- --
Distributions from Capital Gains -- (1.04) (0.35) (0.74)
-------- ------- ------- --------
Total Distributions -- (1.04) (0.35) (0.74)
-------- ------- ------- --------
Net Asset Value End of Period $ 23.47 $ 21.41 $ 17.02 $ 13.12
-------- ------- ------- --------
Total Return 9.62%(B) 32.09% 32.40% 15.91%(B)
Net Assets End of Period (in thousands) $ 68,104 $60,640 $44,596 $ 2,339
Ratio of Expenses to Average Net Assets 0.94%(A) 1.03% 0.97%(E) 1.10%(A)(E)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 0.94%(A) 1.03% 0.97%(E) 1.10%(A)(E)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.01)%(A) (0.13)% (0.10)% 0.04%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (0.01)%(A) (0.13)% (0.10)% 0.04%(A)
Portfolio Turnover Rate 17% 28% 22% 30%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
63
<PAGE>
ENTERPRISE EQUITY FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE EQUITY FUND (CLASS A) JUNE 30, 1999
- --------------------------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 6.47
Net Investment Income (Loss) 0.01(F)
Net Realized and Unrealized Gain (Loss) on Investments 0.64
---------
Total from Investment Operations 0.65
---------
Dividends from Net Investment Income --
Distributions from Capital Gains --
---------
Total Distributions --
---------
Net Asset Value End of Period $ 7.12
---------
Total Return(C) 10.05%(B)
Net Assets End of Period (in thousands) $ 7,804
Ratio of Expenses to Average Net Assets 1.60%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.52%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.22%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) (0.70)%(A)
Portfolio Turnover Rate 31%
<CAPTION>
FOR THE PERIOD
YEAR ENDED 5/1/97
ENTERPRISE EQUITY FUND (CLASS A) DECEMBER 31, 1998 THROUGH 12/31/97
- --------------------------------------------------------------------------------- ------------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 5.96 $ 5.00
Net Investment Income (Loss) 0.03 0.01
Net Realized and Unrealized Gain (Loss) on Investments 0.53 1.05
-------- ---------
Total from Investment Operations 0.56 1.06
-------- ---------
Dividends from Net Investment Income (0.02) --
Distributions from Capital Gains (0.03) (0.10)
-------- ---------
Total Distributions (0.05) (0.10)
-------- ---------
Net Asset Value End of Period $ 6.47 $ 5.96
-------- ---------
Total Return(C) 9.38% 21.30%(B)
Net Assets End of Period (in thousands) $ 6,741 $ 3,196
Ratio of Expenses to Average Net Assets 1.60% 1.60%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.73% 6.52%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.59% 0.26%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) (0.54)% (4.66)%(A)
Portfolio Turnover Rate 35% 69%(A)
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE EQUITY FUND (CLASS B) JUNE 30, 1999
- --------------------------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 6.43
Net Investment Income (Loss) (0.01)(F)
Net Realized and Unrealized Gain (Loss) on Investments 0.64
---------
Total from Investment Operations 0.63
---------
Dividends from Net Investment Income --
Distributions from Capital Gains --
---------
Total Distributions --
---------
Net Asset Value End of Period $ 7.06
---------
Total Return(D) 9.80%(B)
Net Assets End of Period (in thousands) $ 11,109
Ratio of Expenses to Average Net Assets 2.15%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 3.08%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.32)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) (1.25)%(A)
Portfolio Turnover Rate 31%
<CAPTION>
FOR THE PERIOD
YEAR ENDED 5/1/97
ENTERPRISE EQUITY FUND (CLASS B) DECEMBER 31, 1998 THROUGH 12/31/97
- --------------------------------------------------------------------------------- ------------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 5.94 $ 5.00
Net Investment Income (Loss) -- --
Net Realized and Unrealized Gain (Loss) on Investments 0.53 1.04
-------- ---------
Total from Investment Operations 0.53 1.04
-------- ---------
Dividends from Net Investment Income (0.01) --
Distributions from Capital Gains (0.03) (0.10)
-------- ---------
Total Distributions (0.04) (0.10)
-------- ---------
Net Asset Value End of Period $ 6.43 $ 5.94
-------- ---------
Total Return(D) 8.82% 20.80%(B)
Net Assets End of Period (in thousands) $ 8,731 $ 1,820
Ratio of Expenses to Average Net Assets 2.15% 2.15%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 3.29% 6.21%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.07% (0.23)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) (1.07)% (4.29)%(A)
Portfolio Turnover Rate 35% 69%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
64
<PAGE>
ENTERPRISE EQUITY FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE EQUITY FUND (CLASS C) JUNE 30, 1999
- --------------------------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 6.44
Net Investment Income (Loss) (0.01)(F)
Net Realized and Unrealized Gain (Loss) on Investments 0.63
---------
Total from Investment Operations 0.62
---------
Dividends from Net Investment Income --
Distributions from Capital Gains --
---------
Total Distributions --
---------
Net Asset Value End of Period $ 7.06
---------
Total Return(D) 9.63%(B)
Net Assets End of Period (in thousands) $ 2,157
Ratio of Expenses to Average Net Assets 2.15%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 3.08%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.31)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) (1.23)%(A)
Portfolio Turnover Rate 31%
<CAPTION>
FOR THE PERIOD
YEAR ENDED 5/1/97
ENTERPRISE EQUITY FUND (CLASS C) DECEMBER 31, 1998 THROUGH 12/31/97
- --------------------------------------------------------------------------------- ------------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 5.94 $ 5.00
Net Investment Income (Loss) 0.01 --
Net Realized and Unrealized Gain (Loss) on Investments 0.53 1.04
-------- ---------
Total from Investment Operations 0.54 1.04
-------- ---------
Dividends from Net Investment Income (0.01) --
Distributions from Capital Gains (0.03) (0.10)
-------- ---------
Total Distributions (0.04) (0.10)
-------- ---------
Net Asset Value End of Period $ 6.44 $ 5.94
-------- ---------
Total Return(D) 8.98% 20.89%(B)
Net Assets End of Period (in thousands) $ 1,504 $ 283
Ratio of Expenses to Average Net Assets 2.15% 2.15%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 3.28% 6.01%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.09% (0.21)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) (1.03)% (4.07)%(A)
Portfolio Turnover Rate 35% 69%(A)
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) FOR THE PERIOD
SIX MONTHS ENDED 10/14/98
ENTERPRISE EQUITY FUND (CLASS Y) JUNE 30, 1999 THROUGH 12/31/98
- --------------------------------------------------------------------------------- ------------------ -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 6.43 $ 5.86
Net Investment Income (Loss) 0.02(F) 0.01
Net Realized and Unrealized Gain (Loss) on Investments 0.65 0.63
-------- --------
Total from Investment Operations 0.67 0.64
-------- --------
Dividends from Net Investment Income -- (0.04)
Distributions from Capital Gains -- (0.03)
-------- --------
Total Distributions -- (0.07)
-------- --------
Net Asset Value End of Period $ 7.10 $ 6.43
-------- --------
Total Return 10.42%(B) 10.93%(B)
Net Assets End of Period (in thousands) $ 86 $ 57
Ratio of Expenses to Average Net Assets 1.15%(A) 1.13%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.09%(A) 2.26%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.68%(A) 1.04%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) (0.25)%(A) (0.11)%(A)
Portfolio Turnover Rate 31% 35%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
65
<PAGE>
ENTERPRISE GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE GROWTH AND INCOME FUND (CLASS A) JUNE 30, 1999
- ------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 29.01
Net Investment Income (Loss) (0.01)(F)
Net Realized and Unrealized Gain (Loss) on Investments 5.48
---------
Total from Investment Operations 5.47
---------
Dividends from Net Investment Income --
Distributions from Capital Gains --
---------
Total Distributions --
---------
Net Asset Value End of Period $ 34.48
---------
Total Return(C) 18.86%(B)
Net Assets End of Period (in thousands) $ 36,980
Ratio of Expenses to Average Net Assets 1.50%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.67%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.08)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (0.24)%(A)
Portfolio Turnover Rate 2%
<CAPTION>
FOR THE PERIOD FOR THE PERIOD
YEAR ENDED 10/1/97 7/17/97
ENTERPRISE GROWTH AND INCOME FUND (CLASS A) DECEMBER 31, 1998 THROUGH 12/31/97 THROUGH 9/30/97
- ------------------------------------------------------------- ------------------- ------------------ ----------------
<S> <C> <C> <C>
Net Asset Value Beginning of Period $ 25.19 $ 25.71 $ 25.05
Net Investment Income (Loss) 0.14 0.01 --
Net Realized and Unrealized Gain (Loss) on Investments 4.00 0.04 0.66
------- --------- ---------
Total from Investment Operations 4.14 0.05 0.66
------- --------- ---------
Dividends from Net Investment Income (0.09) (0.11) --
Distributions from Capital Gains (0.23) (0.46) --
------- --------- ---------
Total Distributions (0.32) (0.57) --
------- --------- ---------
Net Asset Value End of Period $ 29.01 $ 25.19 $ 25.71
------- --------- ---------
Total Return(C) 16.50% 0.20%(B) 2.63%(B)
Net Assets End of Period (in thousands) $16,664 $ 4,032 $ 1,109
Ratio of Expenses to Average Net Assets 1.50% 1.50%(A) 1.50%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.93% 2.11%(A) 4.47%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.41% 0.56%(A) 0.07%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (0.03)% (0.04)%(A) (2.90)%(A)
Portfolio Turnover Rate 5% 1%(A) 16%(A)
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE GROWTH AND INCOME FUND (CLASS B) JUNE 30, 1999
- ------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 28.90
Net Investment Income (Loss) (0.10)(F)
Net Realized and Unrealized Gain (Loss) on Investments 5.44
---------
Total from Investment Operations 5.34
---------
Dividends from Net Investment Income --
Distributions from Capital Gains --
---------
Total Distributions --
---------
Net Asset Value End of Period $ 34.24
---------
Total Return(D) 18.48%(B)
Net Assets End of Period (in thousands) $ 40,944
Ratio of Expenses to Average Net Assets 2.05%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.21%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.64)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (0.80)%(A)
Portfolio Turnover Rate 2%
<CAPTION>
FOR THE PERIOD FOR THE PERIOD
YEAR ENDED 10/1/97 7/17/97
ENTERPRISE GROWTH AND INCOME FUND (CLASS B) DECEMBER 31, 1998 THROUGH 12/31/97 THROUGH 9/30/97
- ------------------------------------------------------------- ------------------- ------------------ ----------------
<S> <C> <C> <C>
Net Asset Value Beginning of Period $ 25.15 $ 25.68 $ 25.05
Net Investment Income (Loss) 0.05 (0.01) (0.01)
Net Realized and Unrealized Gain (Loss) on Investments 3.95 0.03 0.64
------- --------- ---------
Total from Investment Operations 4.00 0.02 0.63
------- --------- ---------
Dividends from Net Investment Income (0.02) (0.09) --
Distributions from Capital Gains (0.23) (0.46) --
------- --------- ---------
Total Distributions (0.25) (0.55) --
------- --------- ---------
Net Asset Value End of Period $ 28.90 $ 25.15 $ 25.68
------- --------- ---------
Total Return(D) 15.95% 0.07%(B) 2.51%(B)
Net Assets End of Period (in thousands) $21,891 $ 3,257 $ 992
Ratio of Expenses to Average Net Assets 2.05% 2.05%(A) 2.05%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.48% 2.66%(A) 4.59%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.17)% (0.02)%(A) (0.34)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (0.60)% (0.63)%(A) (2.87)%(A)
Portfolio Turnover Rate 5% 1%(A) 16%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
66
<PAGE>
ENTERPRISE GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE GROWTH AND INCOME FUND (CLASS C) JUNE 30, 1999
- ------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 28.91
Net Investment Income (Loss) (0.10)(F)
Net Realized and Unrealized Gain (Loss) on Investments 5.45
---------
Total from Investment Operations 5.35
---------
Dividends from Net Investment Income --
Distributions from Capital Gains --
---------
Total Distributions --
---------
Net Asset Value End of Period $ 34.26
---------
Total Return(D) 18.51%(B)
Net Assets End of Period (in thousands) $ 6,698
Ratio of Expenses to Average Net Assets 2.05%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.21%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.67)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (0.83)%(A)
Portfolio Turnover Rate 2%
<CAPTION>
FOR THE PERIOD FOR THE PERIOD
YEAR ENDED 10/1/97 7/17/97
ENTERPRISE GROWTH AND INCOME FUND (CLASS C) DECEMBER 31, 1998 THROUGH 12/31/97 THROUGH 9/30/97
- ------------------------------------------------------------- ------------------- ------------------ ----------------
<S> <C> <C> <C>
Net Asset Value Beginning of Period $ 25.15 $ 25.68 $ 25.05
Net Investment Income (Loss) 0.06 (0.02) (0.01)
Net Realized and Unrealized Gain (Loss) on Investments 3.94 0.05 0.64
-------- --------- ---------
Total from Investment Operations 4.00 0.03 0.63
-------- --------- ---------
Dividends from Net Investment Income (0.01) (0.10) --
Distributions from Capital Gains (0.23) (0.46) --
-------- --------- ---------
Total Distributions (0.24) (0.56) --
-------- --------- ---------
Net Asset Value End of Period $ 28.91 $ 25.15 $ 25.68
-------- --------- ---------
Total Return(D) 15.95% 0.10%(B) 2.51%(B)
Net Assets End of Period (in thousands) $ 4,654 $ 561 $ 99
Ratio of Expenses to Average Net Assets 2.05% 2.05%(A) 2.05%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.49% 2.64%(A) 4.60%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.16)% 0.03%(A) (0.39)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (0.60)% (0.56)%(A) (2.94)%(A)
Portfolio Turnover Rate 5% 1%(A) 16%(A)
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED)
ENTERPRISE GROWTH AND SIX MONTHS ENDED YEAR ENDED
INCOME FUND (CLASS Y) JUNE 30, 1999 DECEMBER 31, 1998
- ---------------------------------- ------------------ -------------------
<S> <C> <C>
Net Asset Value Beginning of
Period $ 29.13 $ 25.24
Net Investment Income (Loss) 0.05(F) 0.29
Net Realized and Unrealized Gain
(Loss) on Investments 5.52 4.00
------- -------
Total from Investment Operations 5.57 4.29
------- -------
Dividends from Net Investment
Income -- (0.17)
Distributions from Capital Gains -- (0.23)
------- -------
Total Distributions -- (0.40)
------- -------
Net Asset Value End of Period $ 34.70 $ 29.13
------- -------
Total Return 19.12%(B) 17.08%
Net Assets End of Period (in
thousands) $20,450 $18,310
Ratio of Expenses to Average Net
Assets 1.05%(A) 1.05%
Ratio of Expenses to Average Net
Assets (Excluding Waivers) 1.21%(A) 1.48%
Ratio of Net Investment Income
(Loss) to Average Net Assets 0.35%(A) 0.89%
Ratio of Net Investment Income
(Loss) to Average Net Assets
(Excluding Waivers) 0.19%(A) 0.45%
Portfolio Turnover Rate 2% 5%
<CAPTION>
FOR THE PERIOD YEAR YEAR YEAR YEAR
ENTERPRISE GROWTH AND 10/1/97 ENDED ENDED ENDED ENDED
INCOME FUND (CLASS Y) THROUGH 12/31/97 9/30/97 9/30/96 9/30/95 9/30/94
- ---------------------------------- ------------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of
Period $ 25.73 $ 20.11 $ 16.69 $ 12.72 $ 12.08
Net Investment Income (Loss) 0.06 0.35 0.21 0.13 0.15
Net Realized and Unrealized Gain
(Loss) on Investments 0.02 6.18 3.45 4.22 0.74
------- ------- ------- ------- --------
Total from Investment Operations 0.08 6.53 3.66 4.35 0.89
------- ------- ------- ------- --------
Dividends from Net Investment
Income (0.11) (0.20) (0.24) (0.16) (0.14)
Distributions from Capital Gains (0.46) (0.71) -- (0.22) (0.11)
------- ------- -------- -------- --------
Total Distributions (0.57) (0.91) (0.24) (0.38) (0.25)
------- ------- -------- -------- --------
Net Asset Value End of Period $ 25.24 $ 25.73 $ 20.11 $ 16.69 $ 12.72
------- ------- -------- -------- --------
Total Return 0.31%(B) 33.55% 22.21% 35.24% 7.47%
Net Assets End of Period (in
thousands) $15,542 $15,428 $ 8,865 $ 5,657 $ 3,639
Ratio of Expenses to Average Net
Assets 1.05%(A) 0.99% 0.97% 0.90% 0.90%
Ratio of Expenses to Average Net
Assets (Excluding Waivers) 1.68%(A) 2.20% 2.05% 2.20% 2.23%
Ratio of Net Investment Income
(Loss) to Average Net Assets 0.96%(A) 0.88% 1.23% 1.52% 1.17%
Ratio of Net Investment Income
(Loss) to Average Net Assets
(Excluding Waivers) 0.33%(A) (0.33)% 0.15% 0.22% (0.16)%
Portfolio Turnover Rate 1%(A) 16% 18% 25% 10%
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
67
<PAGE>
ENTERPRISE EQUITY INCOME FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE EQUITY INCOME FUND (CLASS A) JUNE 30, 1999
- -------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 26.89
Net Investment Income (Loss) 0.12(F)
Net Realized and Unrealized Gain (Loss) on Investments 3.16
-------
Total from Investment Operations 3.28
-------
Dividends from Net Investment Income (0.12)
Distributions from Capital Gains --
-------
Total Distributions (0.12)
-------
Net Asset Value End of Period $ 30.05
-------
Total Return(C) 12.19%(B)
Net Assets End of Period (in thousands) $122,970
Ratio of Expenses to Average Net Assets 1.50%(A)
Ratio of Expenses to Average Net Assets (Excluding
Waivers) 1.51%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets 0.84%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Waivers) 0.82%(A)
Portfolio Turnover Rate 12%
<CAPTION>
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
ENTERPRISE EQUITY INCOME FUND (CLASS A) 1998 1997 1996 1995 1994
- -------------------------------------------------------- ------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 26.42 $ 22.44 $ 20.73 $ 16.43 $ 17.75
Net Investment Income (Loss) 0.36 0.17 0.41 0.45 0.44
Net Realized and Unrealized Gain (Loss) on Investments 2.52 5.95 3.27 5.00 (0.53)
-------- ------- ------- ------- -------
Total from Investment Operations 2.88 6.12 3.68 5.45 (0.09)
-------- ------- ------- ------- -------
Dividends from Net Investment Income (0.35) (0.15) (0.40) (0.45) (0.44)
Distributions from Capital Gains (2.06) (1.99) (1.57) (0.70) (0.79)
-------- ------- ------- ------- -------
Total Distributions (2.41) (2.14) (1.97) (1.15) (1.23)
-------- ------- ------- ------- -------
Net Asset Value End of Period $ 26.89 $ 26.42 $ 22.44 $ 20.73 $ 16.43
-------- ------- ------- ------- -------
Total Return(C) 11.13% 28.08% 17.86% 33.40% (0.49)%
Net Assets End of Period (in thousands) $111,275 $97,932 $72,647 $61,906 $50,926
Ratio of Expenses to Average Net Assets 1.50% 1.50% 1.50% 1.50% 1.50%
Ratio of Expenses to Average Net Assets (Excluding
Waivers) 1.58% 1.62% 1.68% 1.78% 1.73%
Ratio of Net Investment Income (Loss) to Average Net
Assets 1.32% 1.35% 1.87% 2.33% 2.50%
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Waivers) 1.25% 1.23% 1.69% 2.06% 2.30%
Portfolio Turnover Rate 31% 33% 33% 26% 41%
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) YEAR ENDED DECEMBER 31,
SIX MONTHS ENDED -----------------------------------
ENTERPRISE EQUITY INCOME FUND (CLASS B) JUNE 30, 1999 1998 1997 1996
- ------------------------------------------------------------- ------------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 26.57 $ 26.17 $ 22.30 $ 20.67
Net Investment Income (Loss) 0.04(F) 0.20 0.12 0.24
Net Realized and Unrealized Gain (Loss) on Investments 3.12 2.49 5.83 3.30
------- ------- ------- -------
Total from Investment Operations 3.16 2.69 5.95 3.54
------- ------- ------- -------
Dividends from Net Investment Income (0.06) (0.23) (0.09) (0.34)
Distributions from Capital Gains -- (2.06) (1.99) (1.57)
------- ------- ------- --------
Total Distributions (0.06) (2.29) (2.08) (1.91)
------- ------- ------- --------
Net Asset Value End of Period $ 29.67 $ 26.57 $ 26.17 $ 22.30
------- ------- ------- --------
Total Return(D) 11.88%(B) 10.49% 27.35% 17.22%
Net Assets End of Period (in thousands) $45,907 $33,807 $19,055 $ 5,615
Ratio of Expenses to Average Net Assets 2.05%(A) 2.05% 2.05% 2.05%
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.06%(A) 2.13% 2.17% 2.23%
Ratio of Net Investment Income (Loss) to Average Net Assets 0.27%(A) 0.78% 0.77% 1.32%
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 0.26%(A) 0.71% 0.65% 1.14%
Portfolio Turnover Rate 12% 31% 33% 33%
<CAPTION>
FOR THE PERIOD
5/1/95
ENTERPRISE EQUITY INCOME FUND (CLASS B) THROUGH 12/31/95
- ------------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 18.12
Net Investment Income (Loss) 0.29
Net Realized and Unrealized Gain (Loss) on Investments 3.40
--------
Total from Investment Operations 3.69
--------
Dividends from Net Investment Income (0.44)
Distributions from Capital Gains (0.70)
--------
Total Distributions (1.14)
--------
Net Asset Value End of Period $ 20.67
--------
Total Return(D) 20.57%(B)
Net Assets End of Period (in thousands) $ 1,086
Ratio of Expenses to Average Net Assets 2.05%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.23%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 1.56%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 1.33%(A)
Portfolio Turnover Rate 26%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
68
<PAGE>
ENTERPRISE EQUITY INCOME FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE EQUITY INCOME FUND (CLASS C) JUNE 30, 1999
- ----------------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 26.70
Net Investment Income (Loss) 0.04(F)
Net Realized and Unrealized Gain (Loss) on Investments 3.14
--------
Total from Investment Operations 3.18
--------
Dividends from Net Investment Income (0.06)
Distributions from Capital Gains --
--------
Total Distributions (0.06)
--------
Net Asset Value End of Period $ 29.82
--------
Total Return(D) 11.89%(B)
Net Assets End of Period (in thousands) $ 8,754
Ratio of Expenses to Average Net Assets 2.05%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.06%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.26%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 0.25%(A)
Portfolio Turnover Rate 12%
<CAPTION>
FOR THE PERIOD FROM
YEAR ENDED 5/1/97
ENTERPRISE EQUITY INCOME FUND (CLASS C) DECEMBER 31, 1998 THROUGH 12/31/97
- ----------------------------------------------------------------------- ------------------- --------------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 26.31 $ 24.26
Net Investment Income (Loss) 0.21 0.04
Net Realized and Unrealized Gain (Loss) on Investments 2.49 4.14
-------- --------
Total from Investment Operations 2.70 4.18
-------- --------
Dividends from Net Investment Income (0.25) (0.14)
Distributions from Capital Gains (2.06) (1.99)
-------- --------
Total Distributions (2.31) (2.13)
-------- --------
Net Asset Value End of Period $ 26.70 $ 26.31
-------- --------
Total Return(D) 10.47% 18.21%(B)
Net Assets End of Period (in thousands) $ 5,639 $ 1,857
Ratio of Expenses to Average Net Assets 2.05% 2.05%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.13% 2.20%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.81% 0.69%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding
Waivers) 0.73% 0.54%(A)
Portfolio Turnover Rate 31% 33%(A)
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) FOR THE PERIOD
SIX MONTHS ENDED 1/22/98
ENTERPRISE EQUITY INCOME FUND (CLASS Y) JUNE 30, 1999 THROUGH 12/31/98
- --------------------------------------------------------------------------------- ------------------ -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 26.87 $ 26.25
Net Investment Income (Loss) 0.18(F) 0.47
Net Realized and Unrealized Gain (Loss) on Investments 3.15 2.69
------- -------
Total from Investment Operations 3.33 3.16
------- -------
Dividends from Net Investment Income (0.18) (0.48)
Distributions from Capital Gains -- (2.06)
------- -------
Total Distributions (0.18) (2.54)
------- -------
Net Asset Value End of Period $ 30.02 $ 26.87
------- -------
Total Return 12.39%(B) 12.26%(B)
Net Assets End of Period (in thousands) $ 123 $ 112
Ratio of Expenses to Average Net Assets 1.05%(A) 1.05%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.06%(A) 1.13%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 1.29%(A) 1.79%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 1.28%(A) 1.72%(A)
Portfolio Turnover Rate 12% 31%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
69
<PAGE>
ENTERPRISE CAPITAL APPRECIATION FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE CAPITAL APPRECIATION FUND (CLASS A) JUNE 30, 1999
- ------------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 38.59
Net Investment Income (Loss) (0.22)(F)
Net Realized and Unrealized Gain (Loss) on Investments 3.97
--------
Total from Investment Operations 3.75
--------
Dividends from Net Investment Income --
Distributions from Capital Gains --
--------
Total Distributions --
--------
Net Asset Value End of Period $ 42.34
--------
Total Return(C) 9.72%(B)
Net Assets End of Period (in thousands) $144,153
Ratio of Expenses to Average Net Assets 1.48%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.48%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.13)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (1.13)%(A)
Portfolio Turnover Rate 37%
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------------------------------------
ENTERPRISE CAPITAL APPRECIATION FUND (CLASS A) 1998 1997 1996 1995
- ------------------------------------------------------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 35.54 $ 34.21 $ 32.54 $ 28.54
Net Investment Income (Loss) (0.39)(F) (0.37) (0.31) (0.25)
Net Realized and Unrealized Gain (Loss) on Investments 10.55 7.31 5.69 7.59
------- ------- ------- -------
Total from Investment Operations 10.16 6.94 5.38 7.34
------- ------- ------- -------
Dividends from Net Investment Income -- -- -- --
Distributions from Capital Gains (7.11) (5.61) (3.71) (3.34)
------- ------- ------- -------
Total Distributions (7.11) (5.61) (3.71) (3.34)
------- ------- ------- -------
Net Asset Value End of Period $ 38.59 $ 35.54 $ 34.21 $ 32.54
------- ------- ------- -------
Total Return(C) 30.15% 20.27% 16.52% 25.70%
Net Assets End of Period (in thousands) $131,605 $112,738 $115,253 $121,207
Ratio of Expenses to Average Net Assets 1.52% 1.65% 1.60%(E) 1.65%
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.52% 1.65% 1.60%(E) 1.65%
Ratio of Net Investment Income (Loss) to Average Net Assets (1.01)% (1.06)% (0.87)% (0.82)%
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (1.01)% (1.06)% (0.87)% (0.82)%
Portfolio Turnover Rate 76% 61% 66% 65%
<CAPTION>
YEAR ENDED
DECEMBER 31,
-------------
ENTERPRISE CAPITAL APPRECIATION FUND (CLASS A) 1994
- ------------------------------------------------------------- -------------
<S> <C>
Net Asset Value Beginning of Period $ 31.10
Net Investment Income (Loss) (0.13)
Net Realized and Unrealized Gain (Loss) on Investments (0.95)
-------
Total from Investment Operations (1.08)
-------
Dividends from Net Investment Income --
Distributions from Capital Gains (1.48)
-------
Total Distributions (1.48)
-------
Net Asset Value End of Period $ 28.54
-------
Total Return(C) (3.46)%
Net Assets End of Period (in thousands) $101,237
Ratio of Expenses to Average Net Assets 1.66%
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.66%
Ratio of Net Investment Income (Loss) to Average Net Assets (0.50)%
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (0.50)%
Portfolio Turnover Rate 74%
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) YEAR ENDED DECEMBER 31,
SIX MONTHS ENDED ------------------------------------
ENTERPRISE CAPITAL APPRECIATION FUND (CLASS B) JUNE 30, 1999 1998 1997 1996
- ------------------------------------------------------------- ------------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 37.50 $ 34.89 $ 33.86 $ 32.42
Net Investment Income (Loss) (0.32)(F) (0.58)(F) (0.45) (0.35)
Net Realized and Unrealized Gain (Loss)
on Investments 3.85 10.30 7.09 5.50
--------- ------- -------- --------
Total from Investment Operations 3.53 9.72 6.64 5.15
--------- ------- -------- --------
Dividends from Net Investment Income -- -- -- --
Distributions from Capital Gains -- (7.11) (5.61) (3.71)
--------- ------- -------- --------
Total Distributions -- (7.11) (5.61) (3.71)
--------- ------- -------- --------
Net Asset Value End of Period $ 41.03 $ 37.50 $ 34.89 $ 33.86
--------- ------- -------- --------
Total Return(D) 9.41%(B) 29.44% 19.60% 15.87%
Net Assets End of Period (in thousands) $ 24,072 $14,663 $ 7,862 $ 5,047
Ratio of Expenses to Average Net Assets 2.04%(A) 2.08% 2.21% 2.14%(E)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.04%(A) 2.08% 2.21% 2.14%(E)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.67)%(A) (1.56)% (1.61)% (1.43)%
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (1.67)%(A) (1.56)% (1.61)% (1.43)%
Portfolio Turnover Rate 37% 76% 61% 66%
<CAPTION>
FOR THE PERIOD
5/1/95
ENTERPRISE CAPITAL APPRECIATION FUND (CLASS B) THROUGH 12/31/95
- ------------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 30.04
Net Investment Income (Loss) (0.12)
Net Realized and Unrealized Gain (Loss)
on Investments 5.84
---------
Total from Investment Operations 5.72
---------
Dividends from Net Investment Income --
Distributions from Capital Gains (3.34)
---------
Total Distributions (3.34)
---------
Net Asset Value End of Period $ 32.42
---------
Total Return(D) 18.99%(B)
Net Assets End of Period (in thousands) $1,953
Ratio of Expenses to Average Net Assets 2.08%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.08%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.41)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (1.41)%(A)
Portfolio Turnover Rate 65%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
70
<PAGE>
ENTERPRISE CAPITAL APPRECIATION FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE CAPITAL APPRECIATION FUND (CLASS C) JUNE 30, 1999
- ----------------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 38.25
Net Investment Income (Loss) (0.32)(F)
Net Realized and Unrealized Gain (Loss) on Investments 3.91
---------
Total from Investment Operations 3.59
---------
Dividends from Net Investment Income --
Distributions from Capital Gains --
---------
Total Distributions --
---------
Net Asset Value End of Period $ 41.84
---------
Total Return(D) 9.39%(B)
Net Assets End of Period (in thousands) $2,484
Ratio of Expenses to Average Net Assets 2.04%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.04%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.67)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (1.67)%(A)
Portfolio Turnover Rate 37%
<CAPTION>
FOR THE PERIOD FROM
YEAR ENDED 5/1/97
ENTERPRISE CAPITAL APPRECIATION FUND (CLASS C) DECEMBER 31, 1998 THROUGH 12/31/97
- ----------------------------------------------------------------------- ------------------- --------------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 35.43 $ 33.54
Net Investment Income (Loss) (0.57)(F) (0.19)
Net Realized and Unrealized Gain (Loss) on Investments 10.50 7.69
-------- ---------
Total from Investment Operations 9.93 7.50
-------- ---------
Dividends from Net Investment Income -- --
Distributions from Capital Gains (7.11) (5.61)
-------- ---------
Total Distributions (7.11) (5.61)
-------- ---------
Net Asset Value End of Period $ 38.25 $ 35.43
-------- ---------
Total Return(D) 29.60% 22.35%(B)
Net Assets End of Period (in thousands) $ 1,040 $ 126
Ratio of Expenses to Average Net Assets 2.11% 2.21%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.11% 2.21%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.53)% (1.88)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding
Waivers) (1.53)% (1.88)%(A)
Portfolio Turnover Rate 76% 61%(A)
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED FOR THE PERIOD 5/14/98
ENTERPRISE CAPITAL APPRECIATION FUND (CLASS Y) JUNE 30, 1999 THROUGH 12/31/98
- --------------------------------------------------------------------------------- ------------------ -----------------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 38.79 $ 40.71
Net Investment Income (Loss) (0.14)(F) (0.15)(F)
Net Realized and Unrealized Gain (Loss) on Investments 3.99 5.34
-------- --------
Total from Investment Operations 3.85 5.19
-------- --------
Dividends from Net Investment Income -- --
Distributions from Capital Gains -- (7.11)
-------- --------
Total Distributions -- (7.11)
-------- --------
Net Asset Value End of Period $ 42.64 $ 38.79
-------- --------
Total Return 9.93%(B) 14.08%(B)
Net Assets End of Period (in thousands) $ 250 $ 204
Ratio of Expenses to Average Net Assets 1.03%(A) 1.05%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.03%(A) 1.05%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.67)%(A) (0.51)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) (0.67)%(A) (0.51)%(A)
Portfolio Turnover Rate 37% 76%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
71
<PAGE>
ENTERPRISE SMALL COMPANY GROWTH FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE SMALL COMPANY GROWTH FUND (CLASS A) JUNE 30, 1999
- -------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 22.44
Net Investment Income (Loss) (0.16)(F)
Net Realized and Unrealized Gain (Loss) on Investments 3.51
---------
Total from Investment Operations 3.35
---------
Dividends from Net Investment Income --
Distributions from Capital Gains --
---------
Total Distributions --
---------
Net Asset Value End of Period $ 25.79
---------
Total Return(C) 14.93%(B)
Net Assets End of Period (in thousands) $ 11,101
Ratio of Expenses to Average Net Assets 1.85%(A)
Ratio of Expenses to Average Net Assets (Excluding
Waivers) 2.36%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (1.41)%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Waivers) (1.91)%(A)
Portfolio Turnover Rate 31%
<CAPTION>
FOR THE PERIOD FROM FOR THE PERIOD
YEAR ENDED 10/1/97 7/17/97
ENTERPRISE SMALL COMPANY GROWTH FUND (CLASS A) DECEMBER 31, 1998 THROUGH 12/31/97 THROUGH 9/30/97
- -------------------------------------------------------- ------------------- --------------------- ----------------
<S> <C> <C> <C>
Net Asset Value Beginning of Period $ 23.39 $ 26.61 $ 24.54
Net Investment Income (Loss) (0.32)(F) (0.40) (0.05)
Net Realized and Unrealized Gain (Loss) on Investments (0.63) (2.27) 2.12
-------- ---------- ---------
Total from Investment Operations (0.95) (2.67) 2.07
-------- ---------- ---------
Dividends from Net Investment Income -- -- --
Distributions from Capital Gains -- (0.55) --
-------- ---------- ---------
Total Distributions -- (0.55) --
-------- ---------- ---------
Net Asset Value End of Period $ 22.44 $ 23.39 $ 26.61
-------- ---------- ---------
Total Return(C) (4.06)% (10.04)%(B) 8.44%(B)
Net Assets End of Period (in thousands) $ 8,194 $ 4,861 $ 2,102
Ratio of Expenses to Average Net Assets 1.85% 1.85%(A) 1.85%(A)
Ratio of Expenses to Average Net Assets (Excluding
Waivers) 2.66% 2.38%(A) 4.48%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (1.43)% (1.56)%(A) (1.61)%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Waivers) (2.24)% (2.09)%(A) (4.25)%(A)
Portfolio Turnover Rate 151% 24%(A) 158%(A)
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE SMALL COMPANY GROWTH FUND (CLASS B) JUNE 30, 1999
- -------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 22.13
Net Investment Income (Loss) (0.22)(F)
Net Realized and Unrealized Gain (Loss) on Investments 3.44
---------
Total from Investment Operations 3.22
---------
Dividends from Net Investment Income --
Distributions from Capital Gains --
---------
Total Distributions --
---------
Net Asset Value End of Period $ 25.35
---------
Total Return(D) 14.55%(B)
Net Assets End of Period (in thousands) $ 11,545
Ratio of Expenses to Average Net Assets 2.40%(A)
Ratio of Expenses to Average Net Assets (Excluding
Waivers) 2.91%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (1.95)%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Waivers) (2.46)%(A)
Portfolio Turnover Rate 31%
<CAPTION>
FOR THE PERIOD FROM FOR THE PERIOD
YEAR ENDED 10/1/97 7/17/97
ENTERPRISE SMALL COMPANY GROWTH FUND (CLASS B) DECEMBER 31, 1998 THROUGH 12/31/97 THROUGH 9/30/97
- -------------------------------------------------------- ------------------- --------------------- ----------------
<S> <C> <C> <C>
Net Asset Value Beginning of Period $ 23.33 $ 26.58 $ 24.54
Net Investment Income (Loss) (0.41)(F) (0.47) (0.05)
Net Realized and Unrealized Gain (Loss) on Investments (0.79) (2.23) 2.09
-------- ---------- ---------
Total from Investment Operations (1.20) (2.70) 2.04
-------- ---------- ---------
Dividends from Net Investment Income -- -- --
Distributions from Capital Gains -- (0.55) --
-------- ---------- ---------
Total Distributions -- (0.55) --
-------- ---------- ---------
Net Asset Value End of Period $ 22.13 $ 23.33 $ 26.58
-------- ---------- ---------
Total Return(D) (5.14)% (10.16)%(B) 8.31%(B)
Net Assets End of Period (in thousands) $ 8,760 $ 2,842 $ 1,099
Ratio of Expenses to Average Net Assets 2.40% 2.40%(A) 2.40%(A)
Ratio of Expenses to Average Net Assets (Excluding
Waivers) 3.24% 2.93%(A) 5.52%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (1.94)% (2.11)%(A) (2.18)%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Waivers) (2.78)% (2.64)%(A) (5.29)%(A)
Portfolio Turnover Rate 151% 24%(A) 158%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
72
<PAGE>
ENTERPRISE SMALL COMPANY GROWTH FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE SMALL COMPANY GROWTH FUND (CLASS C) JUNE 30, 1999
- ------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 22.21
Net Investment Income (Loss) (0.22)(F)
Net Realized and Unrealized Gain (Loss) on Investments 3.46
---------
Total from Investment Operations 3.24
---------
Dividends from Net Investment Income --
Distributions from Capital Gains --
---------
Total Distributions --
---------
Net Asset Value End of Period $ 25.45
---------
Total Return(D) 14.59%(B)
Net Assets End of Period (in thousands) $3,043
Ratio of Expenses to Average Net Assets 2.40%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.91%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.95)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (2.46)%(A)
Portfolio Turnover Rate 31%
<CAPTION>
FOR THE PERIOD FOR THE PERIOD
YEAR ENDED 10/1/97 7/17/97
ENTERPRISE SMALL COMPANY GROWTH FUND (CLASS C) DECEMBER 31, 1998 THROUGH 12/31/97 THROUGH 9/30/97
- ------------------------------------------------------------- ------------------- ------------------ ----------------
<S> <C> <C> <C>
Net Asset Value Beginning of Period $ 23.32 $ 26.57 $ 24.54
Net Investment Income (Loss) (0.41)(F) (0.62) (0.07)
Net Realized and Unrealized Gain (Loss) on Investments (0.70) (2.08) 2.10
-------- ---------- ---------
Total from Investment Operations (1.11) (2.70) 2.03
-------- ---------- ---------
Dividends from Net Investment Income -- -- --
Distributions from Capital Gains -- (0.55) --
-------- ---------- ---------
Total Distributions -- (0.55) --
-------- ---------- ---------
Net Asset Value End of Period $ 22.21 $ 23.32 $ 26.57
-------- ---------- ---------
Total Return(D) (4.76)% (10.16)%(B) 8.27%(B)
Net Assets End of Period (in thousands) $ 2,481 $ 795 $ 201
Ratio of Expenses to Average Net Assets 2.40% 2.40%(A) 2.40%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 3.24% 2.93%(A) 5.91%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.93)% (2.11)%(A) (2.15)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (2.77)% (2.64)%(A) (5.65)%(A)
Portfolio Turnover Rate 151% 24%(A) 158%(A)
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED)
ENTERPRISE SMALL COMPANY SIX MONTHS ENDED YEAR ENDED
GROWTH FUND (CLASS Y) JUNE 30, 1999 DECEMBER 31, 1998
- ----------------------------------------- ------------------ -------------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 22.55 $ 23.43
Net Investment Income (Loss) (0.11)(F) (0.23)(F)
Net Realized and Unrealized Gain (Loss)
on Investments 3.51 (0.65)
--------- --------
Total from Investment Operations 3.40 (0.88)
--------- --------
Dividends from Net Investment Income -- --
Distributions from Capital Gains -- --
--------- --------
Total Distributions -- --
--------- --------
Net Asset Value End of Period $ 25.95 $ 22.55
--------- --------
Total Return 15.08%(B) (3.76)%
Net Assets End of Period (in thousands) $ 8,422 $ 9,084
Ratio of Expenses to Average Net Assets 1.40%(A) 1.40%
Ratio of Expenses to Average Net Assets
(Excluding Waivers) 1.91%(A) 2.15%
Ratio of Net Investment Income (Loss)
to Average Net Assets (0.95)%(A) (1.03)%
Ratio of Net Investment Income (Loss)
to Average Net Assets (Excluding
Waivers) (1.45)%(A) (1.78)%
Portfolio Turnover Rate 31% 151%
<CAPTION>
FOR THE PERIOD
10/1/97 YEAR YEAR YEAR YEAR
ENTERPRISE SMALL COMPANY THROUGH ENDED ENDED ENDED ENDED
GROWTH FUND (CLASS Y) 12/31/97 9/30/97 9/30/96 9/30/95 9/30/94
- ----------------------------------------- --------------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 26.62 $ 25.08 $ 19.05 $ 14.01 $ 14.74
Net Investment Income (Loss) (0.07) (0.13) (0.17) (0.12) (0.04)
Net Realized and Unrealized Gain (Loss)
on Investments (2.57) 3.73 7.62 5.49 1.58
--------- ------- -------- -------- --------
Total from Investment Operations (2.64) 3.60 7.45 5.37 1.54
--------- ------- -------- -------- --------
Dividends from Net Investment Income -- -- -- -- --
Distributions from Capital Gains (0.55) (2.06) (1.42) (0.33) (2.27)
--------- ------- -------- -------- --------
Total Distributions (0.55) (2.06) (1.42) (0.33) (2.27)
--------- ------- -------- -------- --------
Net Asset Value End of Period $ 23.43 $ 26.62 $ 25.08 $ 19.05 $ 14.01
--------- ------- -------- -------- --------
Total Return (9.92)%(B) 16.24% 42.07% 39.20% 11.89%
Net Assets End of Period (in thousands) $ 13,540 $15,355 $ 6,609 $ 2,950 $ 1,825
Ratio of Expenses to Average Net Assets 1.40%(A) 1.84% 1.96% 1.85% 1.85%
Ratio of Expenses to Average Net Assets
(Excluding Waivers) 1.96%(A) 3.08% 3.46% 5.15% 6.16%
Ratio of Net Investment Income (Loss)
to Average Net Assets (1.12)%(A) (1.30)% (1.43)% (1.33)% (1.37)%
Ratio of Net Investment Income (Loss)
to Average Net Assets (Excluding
Waivers) (1.68)%(A) (2.54)% (2.93)% (4.63)% (5.68)%
Portfolio Turnover Rate 24%(A) 158% 78% 84% 73%
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
73
<PAGE>
ENTERPRISE SMALL COMPANY VALUE FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE SMALL COMPANY VALUE FUND (CLASS A) JUNE 30, 1999
- -------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 7.92
Net Investment Income (Loss) (0.01)(F)
Net Realized and Unrealized Gain (Loss) on Investments 0.86
--------
Total from Investment Operations 0.85
--------
Dividends from Net Investment Income --
Distributions from Capital Gains --
--------
Total Distributions --
--------
Net Asset Value End of Period $ 8.77
--------
Total Return(C) 10.73%(B)
Net Assets End of Period (in thousands) $104,814
Ratio of Expenses to Average Net Assets 1.63%(A)
Ratio of Expenses to Average Net Assets (Excluding
Waivers) 1.63%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (0.35)%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Waivers) (0.35)%(A)
Portfolio Turnover Rate 23%
<CAPTION>
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
ENTERPRISE SMALL COMPANY VALUE FUND (CLASS A) 1998 1997 1996 1995 1994
- -------------------------------------------------------- ------------ ----------- ------------ ----------- ----------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 7.75 $ 5.74 $ 5.43 $ 5.17 $ 5.29
Net Investment Income (Loss) (0.03) 0.01 (0.01) 0.02 0.03
Net Realized and Unrealized Gain (Loss) on Investments 0.42 2.53 0.62 0.46 (0.01)
------- ------- ------- ------- -------
Total from Investment Operations 0.39 2.54 0.61 0.48 0.02
------- ------- ------- ------- -------
Dividends from Net Investment Income -- -- -- (0.02) (0.03)
Distributions from Capital Gains (0.22) (0.53) (0.30) (0.20) (0.11)
------- ------- ------- ------- -------
Total Distributions (0.22) (0.53) (0.30) (0.22) (0.14)
------- ------- ------- ------- -------
Net Asset Value End of Period $ 7.92 $ 7.75 $ 5.74 $ 5.43 $ 5.17
------- ------- ------- ------- -------
Total Return(C) 5.15% 44.24% 11.28% 9.29% 0.34%
Net Assets End of Period (in thousands) $79,867 $45,310 $17,308 $19,720 $22,120
Ratio of Expenses to Average Net Assets 1.75% 1.75% 1.75% 1.75% 1.75%
Ratio of Expenses to Average Net Assets (Excluding
Waivers) 1.85% 1.95% 2.38% 2.21% 2.15%
Ratio of Net Investment Income (Loss) to Average Net
Assets (0.37)% 0.05% (0.13)% 0.32% 0.60%
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Waivers) (0.48)% (0.15)% (0.76)% (0.14)% 0.18%
Portfolio Turnover Rate 33% 63% 144% 37% 17%
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) YEAR ENDED DECEMBER 31,
SIX MONTHS ENDED --------------------------------------
ENTERPRISE SMALL COMPANY VALUE FUND (CLASS B) JUNE 30, 1999 1998 1997 1996
- ------------------------------------------------------------- ------------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 7.74 $ 7.63 $ 5.69 $ 5.41
Net Investment Income (Loss) (0.04)(F) (0.07)(F) -- (0.03)
Net Realized and Unrealized Gain (Loss) on Investments 0.84 0.40 2.47 0.61
--------- ------- ------- --------
Total from Investment Operations 0.80 0.33 2.47 0.58
--------- ------- ------- --------
Dividends from Net Investment Income -- -- -- --
Distributions from Capital Gains -- (0.22) (0.53) (0.30)
--------- ------- ------- --------
Total Distributions -- (0.22) (0.53) (0.30)
--------- ------- ------- --------
Net Asset Value End of Period $ 8.54 $ 7.74 $ 7.63 $ 5.69
--------- ------- ------- --------
Total Return(D) 10.34%(B) 4.44% 43.40% 10.77%
Net Assets End of Period (in thousands) $ 81,883 $61,929 $22,013 $ 2,606
Ratio of Expenses to Average Net Assets 2.18%(A) 2.30% 2.30% 2.30%
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.18%(A) 2.41% 2.44% 2.92%
Ratio of Net Investment Income (Loss) to Average Net Assets (0.90)%(A) (0.93)% (0.67)% (0.77)%
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (0.90)%(A) (1.04)% (0.81)% (1.39)%
Portfolio Turnover Rate 23% 33% 63% 144%
<CAPTION>
FOR THE PERIOD
5/1/95
ENTERPRISE SMALL COMPANY VALUE FUND (CLASS B) THROUGH 12/31/95
- ------------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 5.28
Net Investment Income (Loss) (0.01)
Net Realized and Unrealized Gain (Loss) on Investments 0.36
---------
Total from Investment Operations 0.35
---------
Dividends from Net Investment Income (0.02)
Distributions from Capital Gains (0.20)
---------
Total Distributions (0.22)
---------
Net Asset Value End of Period $ 5.41
---------
Total Return(D) 6.87%(B)
Net Assets End of Period (in thousands) $ 862
Ratio of Expenses to Average Net Assets 2.30%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.78%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.40)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (0.90)%(A)
Portfolio Turnover Rate 37%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
74
<PAGE>
ENTERPRISE SMALL COMPANY VALUE FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE SMALL COMPANY VALUE FUND (CLASS C) JUNE 30, 1999
- --------------------------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 7.90
Net Investment Income (Loss) (0.04)(F)
Net Realized and Unrealized Gain (Loss) on Investments 0.85
---------
Total from Investment Operations 0.81
---------
Dividends from Net Investment Income --
Distributions from Capital Gains --
---------
Total Distributions --
---------
Net Asset Value End of Period $ 8.71
---------
Total Return(D) 10.25%(B)
Net Assets End of Period (in thousands) $ 26,529
Ratio of Expenses to Average Net Assets 2.19%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.19%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.90)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) (0.90)%(A)
Portfolio Turnover Rate 23%
<CAPTION>
FOR THE PERIOD
YEAR ENDED 5/1/97
ENTERPRISE SMALL COMPANY VALUE FUND (CLASS C) DECEMBER 31, 1998 THROUGH 12/31/97
- --------------------------------------------------------------------------------- ------------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 7.74 $ 6.14
Net Investment Income (Loss) (0.07)(F) (0.02)
Net Realized and Unrealized Gain (Loss) on Investments 0.45 2.15
------- ---------
Total from Investment Operations 0.38 2.13
------- ---------
Dividends from Net Investment Income -- --
Distributions from Capital Gains (0.22) (0.53)
------- ---------
Total Distributions (0.22) (0.53)
------- ---------
Net Asset Value End of Period $ 7.90 $ 7.74
------- ---------
Total Return(D) 5.03% 34.68%(B)
Net Assets End of Period (in thousands) $14,239 $ 2,684
Ratio of Expenses to Average Net Assets 2.30% 2.30%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.40% 2.38%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.94)% (0.88)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) (1.04)% (0.95)%(A)
Portfolio Turnover Rate 33% 63%(A)
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) YEAR ENDED DECEMBER 31,
SIX MONTHS ENDED ------------------------------------
ENTERPRISE SMALL COMPANY VALUE FUND (CLASS Y) JUNE 30, 1999 1998 1997 1996
- ------------------------------------------------------------- ------------------ ------------ ---------- ------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 8.06 $ 7.81 $ 5.77 $ 5.43
Net Investment Income (Loss) --(F) 0.01(F) 1.45 0.01
Net Realized and Unrealized Gain (Loss) on Investments 0.88 0.46 1.12 0.63
-------- -------- ------ --------
Total from Investment Operations 0.88 0.47 2.57 0.64
-------- -------- ------ --------
Dividends from Net Investment Income -- -- -- --
Distributions from Capital Gains -- (0.22) (0.53) (0.30)
-------- -------- ------- --------
Total Distributions -- (0.22) (0.53) (0.30)
-------- -------- ------- --------
Net Asset Value End of Period $ 8.94 $ 8.06 $ 7.81 $ 5.77
-------- -------- ------- --------
Total Return 10.92%(B) 6.13% 44.53% 11.83%
Net Assets End of Period (in thousands) $ 536 $ 277 $ 119 $ 1,926
Ratio of Expenses to Average Net Assets 1.19%(A) 1.30% 1.30% 1.30%
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.19%(A) 1.39% 1.85% 1.92%
Ratio of Net Investment Income (Loss) to Average Net Assets 0.08%(A) 0.06% 2.74% 0.35%
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 0.08%(A) (0.02)% 2.19% (0.27)%
Portfolio Turnover Rate 23% 33% 63% 144%
<CAPTION>
FOR THE PERIOD
5/25/95
ENTERPRISE SMALL COMPANY VALUE FUND (CLASS Y) THROUGH 12/31/95
- ------------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 5.37
Net Investment Income (Loss) 0.04
Net Realized and Unrealized Gain (Loss) on Investments 0.26
---------
Total from Investment Operations 0.30
---------
Dividends from Net Investment Income (0.04)
Distributions from Capital Gains (0.20)
---------
Total Distributions (0.24)
---------
Net Asset Value End of Period $ 5.43
---------
Total Return 5.55%(B)
Net Assets End of Period (in thousands) $ 2,832
Ratio of Expenses to Average Net Assets 1.30%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.81%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.18%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (0.33)%(A)
Portfolio Turnover Rate 37%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
75
<PAGE>
ENTERPRISE INTERNATIONAL GROWTH FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE INTERNATIONAL GROWTH FUND (CLASS A) JUNE 30, 1999
- -------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 18.89
Net Investment Income (Loss) --(F)
Net Realized and Unrealized Gain (Loss) on Investments 0.22
---------
Total from Investment Operations 0.22
---------
Dividends from Net Investment Income --
Distributions from Capital Gains (0.31)
---------
Total Distributions (0.31)
---------
Net Asset Value End of Period $ 18.80
---------
Total Return(C) 1.14%(B)
Net Assets End of Period (in thousands) $ 41,390
Ratio of Expenses to Average Net Assets 2.00%(A)
Ratio of Expenses to Average Net Assets (Excluding
Waivers) 2.03%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets 0.01%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Waivers) (0.01)%(A)
Portfolio Turnover Rate 104%
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------
ENTERPRISE INTERNATIONAL GROWTH FUND (CLASS A) 1998 1997 1996 1995 1994
- -------------------------------------------------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 16.71 $ 17.10 $ 16.08 $ 14.70 $ 17.44
Net Investment Income (Loss) 0.06 0.08 0.10 0.11 (0.01)
Net Realized and Unrealized Gain (Loss) on Investments 2.32 0.73 1.88 2.12 (0.49)
------- ------- ------- ------- -------
Total from Investment Operations 2.38 0.81 1.98 2.23 (0.50)
------- ------- ------- ------- -------
Dividends from Net Investment Income (0.05) (0.07) (0.09) (0.09) --
Distributions from Capital Gains (0.15) (1.13) (0.87) (0.76) (2.24)
------- ------- ------- ------- -------
Total Distributions (0.20) (1.20) (0.96) (0.85) (2.24)
------- ------- ------- ------- -------
Net Asset Value End of Period $ 18.89 $ 16.71 $ 17.10 $ 16.08 $ 14.70
------- ------- ------- ------- -------
Total Return(C) 14.28% 4.75% 12.32% 15.17% (2.82)%
Net Assets End of Period (in thousands) $41,458 $38,020 $34,837 $28,628 $27,523
Ratio of Expenses to Average Net Assets 2.00% 2.00% 2.00% 2.00% 2.00%
Ratio of Expenses to Average Net Assets (Excluding
Waivers) 2.11% 2.11% 2.19% 2.40% 2.51%
Ratio of Net Investment Income (Loss) to Average Net
Assets 0.30% 0.50% 0.61% 0.70% (0.20)%
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Waivers) 0.19% 0.39% 0.42% 0.30% (0.70)%
Portfolio Turnover Rate 52% 27% 24% 31% 116%
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) YEAR ENDED DECEMBER 31,
SIX MONTHS ENDED ------------------------------------
ENTERPRISE INTERNATIONAL GROWTH FUND (CLASS B) JUNE 30, 1999 1998 1997 1996
- ------------------------------------------------------------- ----------------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 18.62 $ 16.53 $ 16.97 $ 16.02
Net Investment Income (Loss) (0.05)(F) (0.04) 0.01 0.01
Net Realized and Unrealized Gain (Loss) on Investments 0.22 2.28 0.69 1.87
--------- ------- -------- --------
Total from Investment Operations 0.17 2.24 0.70 1.88
--------- ------- -------- --------
Dividends from Net Investment Income -- -- (0.01) (0.06)
Distributions from Capital Gains (0.31) (0.15) (1.13) (0.87)
--------- ------- -------- --------
Total Distributions (0.31) (0.15) (1.14) (0.93)
--------- ------- -------- --------
Net Asset Value End of Period $ 18.48 $ 18.62 $ 16.53 $ 16.97
--------- ------- -------- --------
Total Return(D) 0.89%(B) 13.57% 4.17% 11.72%
Net Assets End of Period (in thousands) $ 16,258 $16,008 $ 9,878 $ 4,276
Ratio of Expenses to Average Net Assets 2.55%(A) 2.55% 2.55% 2.55%
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.58%(A) 2.66% 2.67% 2.75%
Ratio of Net Investment Income (Loss) to Average Net Assets (0.51)%(A) (0.28)% (0.06)% 0.09%
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (0.54)%(A) (0.39)% (0.18)% (0.11)%
Portfolio Turnover Rate 104% 52% 27% 24%
<CAPTION>
FOR THE PERIOD
7/5/95
ENTERPRISE INTERNATIONAL GROWTH FUND (CLASS B) THROUGH 12/31/95
- ------------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 14.82
Net Investment Income (Loss) (0.02)
Net Realized and Unrealized Gain (Loss) on Investments 2.08
---------
Total from Investment Operations 2.06
---------
Dividends from Net Investment Income (0.10)
Distributions from Capital Gains (0.76)
---------
Total Distributions (0.86)
---------
Net Asset Value End of Period $ 16.02
---------
Total Return(D) 13.88%(B)
Net Assets End of Period (in thousands) $ 1,094
Ratio of Expenses to Average Net Assets 2.55%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.75%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.65)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) (0.85)%(A)
Portfolio Turnover Rate 31%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
76
<PAGE>
ENTERPRISE INTERNATIONAL GROWTH FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE INTERNATIONAL GROWTH FUND (CLASS C) JUNE 30, 1999
- --------------------------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 18.77
Net Investment Income (Loss) (0.05)(F)
Net Realized and Unrealized Gain (Loss) on Investments 0.22
---------
Total from Investment Operations 0.17
---------
Dividends from Net Investment Income --
Distributions from Capital Gains (0.31)
---------
Total Distributions (0.31)
---------
Net Asset Value End of Period $ 18.63
---------
Total Return(D) 0.88%(B)
Net Assets End of Period (in thousands) $ 3,907
Ratio of Expenses to Average Net Assets 2.55%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.58%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.51)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) (0.53)%(A)
Portfolio Turnover Rate 104%
<CAPTION>
FOR THE PERIOD
YEAR ENDED 5/1/97
ENTERPRISE INTERNATIONAL GROWTH FUND (CLASS C) DECEMBER 31, 1998 THROUGH 12/31/97
- --------------------------------------------------------------------------------- ------------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 16.66 $ 17.51
Net Investment Income (Loss) (0.04) (0.03)
Net Realized and Unrealized Gain (Loss) on Investments 2.31 0.39
-------- ---------
Total from Investment Operations 2.27 0.36
-------- ---------
Dividends from Net Investment Income (0.01) (0.08)
Distributions from Capital Gains (0.15) (1.13)
-------- ---------
Total Distributions (0.16) (1.21)
-------- ---------
Net Asset Value End of Period $ 18.77 $ 16.66
-------- ---------
Total Return(D) 13.64% 2.07%(B)
Net Assets End of Period (in thousands) $ 3,498 $ 1,113
Ratio of Expenses to Average Net Assets 2.55% 2.55%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.67% 2.75%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.35)% (0.51)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) (0.47)% (0.71)%(A)
Portfolio Turnover Rate 52% 27%(A)
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) YEAR ENDED DECEMBER 31,
SIX MONTHS ENDED -----------------------------------
ENTERPRISE INTERNATIONAL GROWTH FUND (CLASS Y) JUNE 30, 1999 1998 1997 1996
- ------------------------------------------------------------- ----------------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 18.88 $ 16.71 $ 17.10 $ 16.07
Net Investment Income (Loss) 0.04(F) 0.14 0.17 0.14
Net Realized and Unrealized Gain (Loss) on Investments 0.23 2.32 0.72 1.92
------- ------- ------- -------
Total from Investment Operations 0.27 2.46 0.89 2.06
------- ------- ------- -------
Dividends from Net Investment Income -- (0.14) (0.15) (0.16)
Distributions from Capital Gains (0.31) (0.15) (1.13) (0.87)
------- ------- ------- -------
Total Distributions (0.31) (0.29) (1.28) (1.03)
------- ------- ------- -------
Net Asset Value End of Period $ 18.84 $ 18.88 $ 16.71 $ 17.10
------- ------- ------- -------
Total Return 1.40%(B) 14.73% 5.21% 12.86%
Net Assets End of Period (in thousands) $14,025 $13,379 $10,986 $ 8,828
Ratio of Expenses to Average Net Assets 1.55%(A) 1.55% 1.55% 1.55%
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.58%(A) 1.66% 1.66% 1.75%
Ratio of Net Investment Income (Loss) to Average Net Assets 0.39%(A) 0.75% 0.95% 1.03%
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 0.36%(A) 0.64% 0.84% 0.84%
Portfolio Turnover Rate 104% 52% 27% 24%
<CAPTION>
FOR THE PERIOD
7/5/95
ENTERPRISE INTERNATIONAL GROWTH FUND (CLASS Y) THROUGH 12/31/95
- ------------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 14.93
Net Investment Income (Loss) 0.02
Net Realized and Unrealized Gain (Loss) on Investments 2.02
--------
Total from Investment Operations 2.04
--------
Dividends from Net Investment Income (0.14)
Distributions from Capital Gains (0.76)
--------
Total Distributions (0.90)
--------
Net Asset Value End of Period $ 16.07
--------
Total Return 13.65%(B)
Net Assets End of Period (in thousands) $3,109
Ratio of Expenses to Average Net Assets 1.55%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.75%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.26%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 0.05%(A)
Portfolio Turnover Rate 31%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
77
<PAGE>
ENTERPRISE GLOBAL FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED) FOR THE PERIOD
SIX MONTHS ENDED 10/1/98
ENTERPRISE GLOBAL FINANCIAL SERVICES FUND (CLASS A) JUNE 30, 1999 THROUGH 12/31/98
- --------------------------------------------------------------------------------- ------------------ -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 6.05 $ 5.00
Net Investment Income (Loss) 0.06(F) 0.01
Net Realized and Unrealized Gain (Loss) on Investments 0.33 1.04
------ --------
Total from Investment Operations 0.39 1.05
------ --------
Dividends from Net Investment Income -- --
Distributions from Capital Gains -- --
------ --------
Total Distributions -- --
------ --------
Net Asset Value End of Period $ 6.44 $ 6.05
------ --------
Total Return(C) 6.45%(B) 21.00%(B)
Net Assets End of Period (in thousands) $4,310 $ 1,426
Ratio of Expenses to Average Net Assets 1.75%(A) 1.75%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 3.01%(A) 6.58%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 1.95%(A) 0.16%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 0.70%(A) (4.68)%(A)
Portfolio Turnover Rate 6% 2%
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) FOR THE PERIOD
SIX MONTHS ENDED 10/1/98
ENTERPRISE GLOBAL FINANCIAL SERVICES FUND (CLASS B) JUNE 30, 1999 THROUGH 12/31/98
- --------------------------------------------------------------------------------- ------------------ -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 6.03 $ 5.00
Net Investment Income (Loss) 0.04(F) 0.01
Net Realized and Unrealized Gain (Loss) on Investments 0.33 1.02
------ --------
Total from Investment Operations 0.37 1.03
------ --------
Dividends from Net Investment Income -- --
Distributions from Capital Gains -- --
------ --------
Total Distributions -- --
------ --------
Net Asset Value End of Period $ 6.40 $ 6.03
------ --------
Total Return(D) 6.14%(B) 20.60%(B)
Net Assets End of Period (in thousands) $3,492 $ 1,023
Ratio of Expenses to Average Net Assets 2.30%(A) 2.30%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 3.58%(A) 7.50%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 1.34%(A) (0.49)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 0.06%(A) (5.69)%(A)
Portfolio Turnover Rate 6% 2%
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
78
<PAGE>
ENTERPRISE GLOBAL FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED) FOR THE PERIOD
SIX MONTHS ENDED 10/1/98
ENTERPRISE GLOBAL FINANCIAL SERVICES FUND (CLASS C) JUNE 30, 1999 THROUGH 12/31/98
- --------------------------------------------------------------------------------- ------------------ -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 6.03 $ 5.00
Net Investment Income (Loss) 0.04(F) 0.01
Net Realized and Unrealized Gain (Loss) on Investments 0.34 1.02
------ --------
Total from Investment Operations 0.38 1.03
------ --------
Dividends from Net Investment Income -- --
Distributions from Capital Gains -- --
------ --------
Total Distributions -- --
------ --------
Net Asset Value End of Period $ 6.41 $ 6.03
------ --------
Total Return(D) 6.30%(B) 20.60%(B)
Net Assets End of Period (in thousands) $ 420 $ 218
Ratio of Expenses to Average Net Assets 2.30%(A) 2.30%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 3.62%(A) 6.42%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 1.34%(A) (0.33)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 0.02%(A) (4.45)%(A)
Portfolio Turnover Rate 6% 2%
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) FOR THE PERIOD
SIX MONTHS ENDED 10/1/98
ENTERPRISE GLOBAL FINANCIAL SERVICES FUND (CLASS Y) JUNE 30, 1999 THROUGH 12/31/98
- --------------------------------------------------------------------------------- ------------------ -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 6.05 $ 5.00
Net Investment Income (Loss) 0.07(F) 0.01
Net Realized and Unrealized Gain (Loss) on Investments 0.33 1.04
------ --------
Total from Investment Operations 0.40 1.05
------ --------
Dividends from Net Investment Income -- --
Distributions from Capital Gains -- --
------ --------
Total Distributions -- --
------ --------
Net Asset Value End of Period $ 6.45 $ 6.05
------ --------
Total Return 6.61%(B) 21.00%(B)
Net Assets End of Period (in thousands) $6,099 $ 5,697
Ratio of Expenses to Average Net Assets 1.30%(A) 1.30%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.75%(A) 5.09%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 2.35%(A) 0.61%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 0.90%(A) (3.18)%(A)
Portfolio Turnover Rate 6% 2%
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
79
<PAGE>
ENTERPRISE GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE GOVERNMENT SECURITIES FUND (CLASS A) JUNE 30, 1999
- ------------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 12.15
Net Investment Income (Loss) 0.32(F)
Net Realized and Unrealized Gain (Loss) on Investments (0.34)
---------
Total from Investment Operations (0.02)
---------
Dividends from Net Investment Income (0.32)
Distributions from Capital Gains --
---------
Total Distributions (0.32)
---------
Net Asset Value End of Period $ 11.81
---------
Total Return(C) (0.15)%(B)
Net Assets End of Period (in thousands) $73,038
Ratio of Expenses to Average Net Assets 1.30%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.37%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 5.42%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 5.35%(A)
Portfolio Turnover Rate 8%
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------
ENTERPRISE GOVERNMENT SECURITIES FUND (CLASS A) 1998 1997 1996 1995 1994
- ------------------------------------------------------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 12.03 $ 11.80 $ 11.83 $ 10.62 $ 12.44
Net Investment Income (Loss) 0.68 0.73 0.74 0.76 0.87
Net Realized and Unrealized Gain (Loss) on Investments 0.12 0.23 (0.03) 1.21 (1.82)
------- ------- ------- ------- -------
Total from Investment Operations 0.80 0.96 0.71 1.97 (0.95)
------- ------- ------- ------- -------
Dividends from Net Investment Income (0.68) (0.73) (0.74) (0.76) (0.87)
Distributions from Capital Gains -- -- -- -- --
------- ------- ------- ------- -------
Total Distributions (0.68) (0.73) (0.74) (0.76) (0.87)
------- ------- ------- ------- -------
Net Asset Value End of Period $ 12.15 $ 12.03 $ 11.80 $ 11.83 $ 10.62
------- ------- ------- ------- -------
Total Return(C) 6.82% 8.39% 6.29% 19.00% (7.81)%
Net Assets End of Period (in thousands) $71,609 $68,639 $73,693 $86,224 $84,431
Ratio of Expenses to Average Net Assets 1.30% 1.30% 1.30% 1.30% 1.30%
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.38% 1.46% 1.42% 1.44% 1.35%
Ratio of Net Investment Income (Loss) to Average Net Assets 5.61% 6.16% 6.35% 6.66% 7.60%
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 5.53% 6.00% 6.23% 6.52% 7.59%
Portfolio Turnover Rate 8% 10% 0% 0% 27%
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) YEAR ENDED DECEMBER 31,
SIX MONTHS ENDED -----------------------------------
ENTERPRISE GOVERNMENT SECURITIES FUND (CLASS B) JUNE 30, 1999 1998 1997 1996
- ------------------------------------------------------------- ------------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 12.14 $ 12.02 $ 11.79 $ 11.83
Net Investment Income (Loss) 0.29 (F) 0.61 0.66 0.68
Net Realized and Unrealized Gain (Loss) on Investments (0.33) 0.12 0.23 (0.04)
--------- ------- ------- --------
Total from Investment Operations (0.04) 0.73 0.89 0.64
--------- ------- ------- --------
Dividends from Net Investment Income (0.29) (0.61) (0.66) (0.68)
Distributions from Capital Gains -- -- -- --
--------- ------- ------- --------
Total Distributions (0.29) (0.61) (0.66) (0.68)
--------- ------- ------- --------
Net Asset Value End of Period $ 11.81 $ 12.14 $ 12.02 $ 11.79
--------- ------- ------- --------
Total Return(D) (0.34)%(B) 6.24% 7.81% 5.61%
Net Assets End of Period (in thousands) $ 32,415 $27,134 $12,285 $ 5,683
Ratio of Expenses to Average Net Assets 1.85%(A) 1.85% 1.85% 1.85%
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.92%(A) 1.93% 2.01% 1.96%
Ratio of Net Investment Income (Loss) to Average Net Assets 4.86%(A) 5.00% 5.55% 5.79%
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 4.79%(A) 4.91% 5.39% 5.68%
Portfolio Turnover Rate 8% 8% 10% 0%
<CAPTION>
FOR THE PERIOD
5/1/95
ENTERPRISE GOVERNMENT SECURITIES FUND (CLASS B) THROUGH 12/31/95
- ------------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 11.12
Net Investment Income (Loss) 0.44
Net Realized and Unrealized Gain (Loss) on Investments 0.71
--------
Total from Investment Operations 1.15
--------
Dividends from Net Investment Income (0.44)
Distributions from Capital Gains --
--------
Total Distributions (0.44)
--------
Net Asset Value End of Period $ 11.83
--------
Total Return(D) 10.47%(B)
Net Assets End of Period (in thousands) $2,124
Ratio of Expenses to Average Net Assets 1.85%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.91%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 5.64%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 5.58%(A)
Portfolio Turnover Rate 0%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
80
<PAGE>
ENTERPRISE GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE GOVERNMENT SECURITIES FUND (CLASS C) JUNE 30, 1999
- --------------------------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 12.14
Net Investment Income (Loss) 0.29(F)
Net Realized and Unrealized Gain (Loss) on Investments (0.33)
---------
Total from Investment Operations (0.04)
---------
Dividends from Net Investment Income (0.29)
Distributions from Capital Gains --
---------
Total Distributions (0.29)
---------
Net Asset Value End of Period $ 11.81
---------
Total Return(D) (0.33)%(B)
Net Assets End of Period (in thousands) $ 4,410
Ratio of Expenses to Average Net Assets 1.85%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.93%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 4.88%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 4.80%(A)
Portfolio Turnover Rate 8%
<CAPTION>
YEAR ENDED FOR THE PERIOD
DECEMBER 31, 5/1/97
ENTERPRISE GOVERNMENT SECURITIES FUND (CLASS C) 1998 THROUGH 12/31/97
- --------------------------------------------------------------------------------- -------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 12.03 $ 11.63
Net Investment Income (Loss) 0.62 0.46
Net Realized and Unrealized Gain (Loss) on Investments 0.11 0.40
-------- --------
Total from Investment Operations 0.73 0.86
-------- --------
Dividends from Net Investment Income (0.62) (0.46)
Distributions from Capital Gains -- --
-------- --------
Total Distributions (0.62) (0.46)
-------- --------
Net Asset Value End of Period $ 12.14 $ 12.03
-------- --------
Total Return(D) 6.15% 7.49%(B)
Net Assets End of Period (in thousands) $ 3,089 $ 498
Ratio of Expenses to Average Net Assets 1.85% 1.85%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.94% 2.03%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 4.97% 5.39%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 4.88% 5.21%(A)
Portfolio Turnover Rate 8% 10%(A)
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE GOVERNMENT SECURITIES FUND (CLASS Y) JUNE 30, 1999
- --------------------------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 12.14
Net Investment Income (Loss) 0.35(F)
Net Realized and Unrealized Gain (Loss) on Investments (0.33)
--------
Total from Investment Operations 0.02
--------
Dividends from Net Investment Income (0.35)
Distributions from Capital Gains --
--------
Total Distributions (0.35)
--------
Net Asset Value End of Period $ 11.81
--------
Total Return 0.16%(B)
Net Assets End of Period (in thousands) $ 7,276
Ratio of Expenses to Average Net Assets 0.85%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 0.93%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 5.88%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 5.80%(A)
Portfolio Turnover Rate 8%
<CAPTION>
YEAR ENDED FOR THE PERIOD
DECEMBER 31, 7/17/97
ENTERPRISE GOVERNMENT SECURITIES FUND (CLASS Y) 1998 THROUGH 12/31/97
- --------------------------------------------------------------------------------- -------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 12.02 $ 11.87
Net Investment Income (Loss) 0.74 0.35
Net Realized and Unrealized Gain (Loss) on Investments 0.12 0.15
-------- --------
Total from Investment Operations 0.86 0.50
-------- --------
Dividends from Net Investment Income (0.74) (0.35)
Distributions from Capital Gains -- --
-------- --------
Total Distributions (0.74) (0.35)
-------- --------
Net Asset Value End of Period $ 12.14 $ 12.02
-------- --------
Total Return 7.30% 4.02%(B)
Net Assets End of Period (in thousands) $ 7,281 $ 7,569
Ratio of Expenses to Average Net Assets 0.85% 0.85%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 0.93% 1.02%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 6.06% 6.40%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 5.98% 6.23%(A)
Portfolio Turnover Rate 8% 10%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
81
<PAGE>
ENTERPRISE HIGH-YIELD BOND FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE HIGH-YIELD BOND FUND (CLASS A) JUNE 30, 1999
- -------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 11.53
Net Investment Income (Loss) 0.46(F)
Net Realized and Unrealized Gain (Loss) on Investments (0.23)
-------
Total from Investment Operations 0.23
-------
Dividends from Net Investment Income (0.46)
Distributions from Capital Gains --
-------
Total Distributions (0.46)
-------
Net Asset Value End of Period $ 11.30
-------
Total Return(C) 2.03%(B)
Net Assets End of Period (in thousands) $70,191
Ratio of Expenses to Average Net Assets 1.30%(A)
Ratio of Expenses to Average Net Assets (Excluding
Waivers) 1.39%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets 8.10%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Waivers) 8.01%(A)
Portfolio Turnover Rate 41%
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------
ENTERPRISE HIGH-YIELD BOND FUND (CLASS A) 1998 1997 1996 1995 1994
- -------------------------------------------------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 12.35 $ 11.84 $ 11.39 $ 10.72 $ 11.70
Net Investment Income (Loss) 0.94 0.99 0.94 0.99 0.97
Net Realized and Unrealized Gain (Loss) on Investments (0.66) 0.51 0.45 0.67 (0.97)
------- ------- ------- ------- -------
Total from Investment Operations 0.28 1.50 1.39 1.66 --
------- ------- ------- ------- -------
Dividends from Net Investment Income (0.94) (0.99) (0.94) (0.99) (0.98)
Distributions from Capital Gains (0.16) -- -- -- --
------- ------- ------- ------- -------
Total Distributions (1.10) (0.99) (0.94) (0.99) (0.98)
------- ------- ------- ------- -------
Net Asset Value End of Period $ 11.53 $ 12.35 $ 11.84 $ 11.39 $ 10.72
------- ------- ------- ------- -------
Total Return(C) 2.29% 13.18% 12.78% 16.00% 0.05%
Net Assets End of Period (in thousands) $72,637 $66,422 $54,129 $52,182 $44,822
Ratio of Expenses to Average Net Assets 1.30% 1.30% 1.30% 1.30% 1.30%
Ratio of Expenses to Average Net Assets (Excluding
Waivers) 1.44% 1.47% 1.50% 1.52% 1.45%
Ratio of Net Investment Income (Loss) to Average Net
Assets 7.72% 8.20% 8.21% 8.80% 8.60%
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Waivers) 7.58% 8.03% 8.01% 8.58% 8.52%
Portfolio Turnover Rate 114% 175% 180% 89% 113%
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) YEAR ENDED DECEMBER 31,
SIX MONTHS ENDED -----------------------------------
ENTERPRISE HIGH-YIELD BOND FUND (CLASS B) JUNE 30, 1999 1998 1997 1996
- ------------------------------------------------------------- ------------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 11.52 $ 12.35 $ 11.84 $ 11.39
Net Investment Income (Loss) 0.43(F) 0.87 0.77 0.88
Net Realized and Unrealized Gain (Loss) on Investments (0.22) (0.67) 0.51 0.45
------- ------- ------- -------
Total from Investment Operations 0.21 0.20 1.28 1.33
------- ------- ------- -------
Dividends from Net Investment Income (0.43) (0.87) (0.77) (0.88)
Distributions from Capital Gains -- (0.16) -- --
------- ------- ------- --------
Total Distributions (0.43) (1.03) (0.77) (0.88)
------- ------- ------- --------
Net Asset Value End of Period $ 11.30 $ 11.52 $ 12.35 $ 11.84
------- ------- ------- --------
Total Return(D) 1.83%(B) 1.64% 12.59% 12.16%
Net Assets End of Period (in thousands) $37,458 $35,495 $19,898 $ 7,892
Ratio of Expenses to Average Net Assets 1.85%(A) 1.85% 1.85% 1.85%
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.94%(A) 1.99% 2.02% 2.05%
Ratio of Net Investment Income (Loss) to Average Net Assets 7.54%(A) 7.20% 7.51% 7.74%
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 7.45%(A) 7.06% 7.35% 7.55%
Portfolio Turnover Rate 41% 114% 175% 180%
<CAPTION>
FOR THE PERIOD
5/1/95
ENTERPRISE HIGH-YIELD BOND FUND (CLASS B) THROUGH 12/31/95
- ------------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 11.11
Net Investment Income (Loss) 0.61
Net Realized and Unrealized Gain (Loss) on Investments 0.28
--------
Total from Investment Operations 0.89
--------
Dividends from Net Investment Income (0.61)
Distributions from Capital Gains --
--------
Total Distributions (0.61)
--------
Net Asset Value End of Period $ 11.39
--------
Total Return(D) 8.12%(B)
Net Assets End of Period (in thousands) $2,951
Ratio of Expenses to Average Net Assets 1.85%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.09%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 7.84%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 7.68%(A)
Portfolio Turnover Rate 89%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
82
<PAGE>
ENTERPRISE HIGH-YIELD BOND FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE HIGH-YIELD BOND FUND (CLASS C) JUNE 30, 1999
- --------------------------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 11.53
Net Investment Income (Loss) 0.43(F)
Net Realized and Unrealized Gain (Loss) on Investments (0.23)
--------
Total from Investment Operations 0.20
--------
Dividends from Net Investment Income (0.43)
Distributions from Capital Gains --
--------
Total Distributions (0.43)
--------
Net Asset Value End of Period $ 11.30
--------
Total Return(D) 1.74%(B)
Net Assets End of Period (in thousands) $ 6,276
Ratio of Expenses to Average Net Assets 1.85%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.94%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 7.52%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 7.43%(A)
Portfolio Turnover Rate 41%
<CAPTION>
FOR THE PERIOD
YEAR ENDED 5/1/97
ENTERPRISE HIGH-YIELD BOND FUND (CLASS C) DECEMBER 31, 1998 THROUGH 12/31/97
- --------------------------------------------------------------------------------- ------------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 12.35 $ 11.71
Net Investment Income (Loss) 0.87 0.61
Net Realized and Unrealized Gain (Loss) on Investments (0.66) 0.64
-------- --------
Total from Investment Operations 0.21 1.25
-------- --------
Dividends from Net Investment Income (0.87) (0.61)
Distributions from Capital Gains (0.16) --
-------- --------
Total Distributions (1.03) (0.61)
-------- --------
Net Asset Value End of Period $ 11.53 $ 12.35
-------- --------
Total Return(D) 1.72% 10.87%(B)
Net Assets End of Period (in thousands) $ 5,392 $ 1,463
Ratio of Expenses to Average Net Assets 1.85% 1.85%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.99% 2.01%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 7.27% 6.84%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 7.13% 6.68%(A)
Portfolio Turnover Rate 114% 175%(A)
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE HIGH-YIELD BOND FUND (CLASS Y) JUNE 30, 1999
- --------------------------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 11.51
Net Investment Income (Loss) 0.49(F)
Net Realized and Unrealized Gain (Loss) on Investments (0.21)
--------
Total from Investment Operations 0.28
--------
Dividends from Net Investment Income (0.49)
Distributions from Capital Gains --
--------
Total Distributions (0.49)
--------
Net Asset Value End of Period $ 11.30
--------
Total Return 2.43%(B)
Net Assets End of Period (in thousands) $ 2,041
Ratio of Expenses to Average Net Assets 0.85%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 0.94%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 8.56%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 8.47%(A)
Portfolio Turnover Rate 41%
<CAPTION>
FOR THE PERIOD
YEAR ENDED 7/25/97
ENTERPRISE HIGH-YIELD BOND FUND (CLASS Y) DECEMBER 31, 1998 THROUGH 12/31/97
- --------------------------------------------------------------------------------- ------------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 12.35 $ 12.17
Net Investment Income (Loss) 0.99 0.67
Net Realized and Unrealized Gain (Loss) on Investments (0.68) 0.18
-------- --------
Total from Investment Operations 0.31 0.85
-------- --------
Dividends from Net Investment Income (0.99) (0.67)
Distributions from Capital Gains (0.16) --
-------- --------
Total Distributions (1.15) (0.67)
-------- --------
Net Asset Value End of Period $ 11.51 $ 12.35
-------- --------
Total Return 2.49% 5.24%(B)
Net Assets End of Period (in thousands) $ 2,032 $ 809
Ratio of Expenses to Average Net Assets 0.85% 0.85%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.00% 1.02%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 8.30% 8.26%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 8.16% 8.09%(A)
Portfolio Turnover Rate 114% 175%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
83
<PAGE>
ENTERPRISE TAX-EXEMPT INCOME FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE TAX-EXEMPT INCOME FUND (CLASS A) JUNE 30, 1999
- -------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 13.84
Net Investment Income (Loss) 0.27(F)
Net Realized and Unrealized Gain (Loss) on Investments (0.48)
---------
Total from Investment Operations (0.21)
---------
Dividends from Net Investment Income (0.27)
Distributions from Capital Gains --
---------
Total Distributions (0.27)
---------
Net Asset Value End of Period $ 13.36
---------
Total Return(C) (1.56)%(B)
Net Assets End of Period (in thousands) $ 22,456
Ratio of Expenses to Average Net Assets 1.10%(A)
Ratio of Expenses to Average Net Assets (Excluding
Waivers) 1.51%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets 3.94%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Waivers) 3.53%(A)
Portfolio Turnover Rate 75%
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------
ENTERPRISE TAX-EXEMPT INCOME FUND (CLASS A) 1998 1997 1996 1995 1994
- -------------------------------------------------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 13.95 $ 13.83 $ 13.99 $ 12.80 $ 14.31
Net Investment Income (Loss) 0.60 0.63 0.64 0.65 0.67
Net Realized and Unrealized Gain (Loss) on Investments 0.20 0.31 (0.16) 1.21 (1.48)
------- ------- ------- ------- -------
Total from Investment Operations 0.80 0.94 0.48 1.86 (0.81)
------- ------- ------- ------- -------
Dividends from Net Investment Income (0.60) (0.63) (0.64) (0.65) (0.68)
Distributions from Capital Gains (0.31) (0.19) -- (0.02) (0.02)
------- ------- ------- ------- -------
Total Distributions (0.91) (0.82) (0.64) (0.67) (0.70)
------- ------- ------- ------- -------
Net Asset Value End of Period $ 13.84 $ 13.95 $ 13.83 $ 13.99 $ 12.80
------- ------- ------- ------- -------
Total Return(C) 5.92% 6.96% 3.53% 14.85% (5.69)%
Net Assets End of Period (in thousands) $23,710 $23,695 $28,478 $33,626 $34,297
Ratio of Expenses to Average Net Assets 1.10% 1.22% 1.25% 1.25% 1.25%
Ratio of Expenses to Average Net Assets (Excluding
Waivers) 1.40% 1.60% 1.41% 1.42% 1.28%
Ratio of Net Investment Income (Loss) to Average Net
Assets 4.30% 4.50% 4.64% 4.82% 5.00%
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Waivers) 4.00% 4.12% 4.48% 4.65% 4.97%
Portfolio Turnover Rate 100% 1% 1% 1% 26%
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) YEAR ENDED DECEMBER 31,
SIX MONTHS ENDED -----------------------------------
ENTERPRISE TAX-EXEMPT INCOME FUND (CLASS B) JUNE 30, 1999 1998 1997 1996
- ------------------------------------------------------------- ------------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 13.84 $ 13.95 $ 13.83 $ 13.99
Net Investment Income (Loss) 0.23(F) 0.53 0.55 0.56
Net Realized and Unrealized Gain (Loss) on Investments (0.49) 0.20 0.31 (0.16)
--------- ------- ------- --------
Total from Investment Operations (0.26) 0.73 0.86 0.40
--------- ------- ------- --------
Dividends from Net Investment Income (0.23) (0.53) (0.55) (0.56)
Distributions from Capital Gains -- (0.31) (0.19) --
--------- -------- -------- --------
Total Distributions (0.23) (0.84) (0.74) (0.56)
--------- -------- -------- --------
Net Asset Value End of Period $ 13.35 $ 13.84 $ 13.95 $ 13.83
--------- -------- -------- --------
Total Return(D) (1.90)%(B) 5.33% 6.36% 2.96%
Net Assets End of Period (in thousands) $ 5,172 $ 4,451 $ 2,883 $ 2,037
Ratio of Expenses to Average Net Assets 1.65%(A) 1.65% 1.76% 1.80%
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.05%(A) 1.96% 2.16% 1.96%
Ratio of Net Investment Income (Loss) to Average Net Assets 3.39%(A) 3.71% 3.94% 4.07%
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 2.98%(A) 3.41% 3.54% 3.92%
Portfolio Turnover Rate 75% 100% 1% 1%
<CAPTION>
- ------------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 13.44
Net Investment Income (Loss) 0.38
Net Realized and Unrealized Gain (Loss) on Investments 0.57
--------
Total from Investment Operations 0.95
--------
Dividends from Net Investment Income (0.38)
Distributions from Capital Gains (0.02)
--------
Total Distributions (0.40)
--------
Net Asset Value End of Period $ 13.99
--------
Total Return(D) 7.18%(B)
Net Assets End of Period (in thousands) $912
Ratio of Expenses to Average Net Assets 1.80%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.98%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 4.08%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 3.94%(A)
Portfolio Turnover Rate 1%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
84
<PAGE>
ENTERPRISE TAX-EXEMPT INCOME FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE TAX-EXEMPT INCOME FUND (CLASS C) JUNE 30, 1999
- --------------------------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 13.84
Net Investment Income (Loss) 0.23(F)
Net Realized and Unrealized Gain (Loss) on Investments (0.48)
---------
Total from Investment Operations (0.25)
---------
Dividends from Net Investment Income (0.23)
Distributions from Capital Gains --
---------
Total Distributions (0.23)
---------
Net Asset Value End of Period $ 13.36
---------
Total Return(D) (1.84)%(B)
Net Assets End of Period (in thousands) $ 1,261
Ratio of Expenses to Average Net Assets 1.65%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.05%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 3.38%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 2.98%(A)
Portfolio Turnover Rate 75%
<CAPTION>
For the Period
Year Ended 5/1/97
Enterprise Tax-Exempt Income Fund (Class C) December 31, 1998 through 12/31/97
- --------------------------------------------------------------------------------- ------------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 13.95 $ 13.68
Net Investment Income (Loss) 0.53 0.36
Net Realized and Unrealized Gain (Loss) on Investments 0.20 0.46
-------- --------
Total from Investment Operations 0.73 0.82
-------- --------
Dividends from Net Investment Income (0.53) (0.36)
Distributions from Capital Gains (0.31) (0.19)
-------- --------
Total Distributions (0.84) (0.55)
-------- --------
Net Asset Value End of Period $ 13.84 $ 13.95
-------- --------
Total Return(D) 5.34% 6.14%(B)
Net Assets End of Period (in thousands) $ 777 $ 184
Ratio of Expenses to Average Net Assets 1.65% 1.67%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.93% 2.34%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 3.71% 3.99%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 3.43% 3.32%(A)
Portfolio Turnover Rate 100% 1%(A)
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) FOR THE PERIOD
SIX MONTHS ENDED 11/17/98
ENTERPRISE TAX-EXEMPT INCOME FUND (CLASS Y) JUNE 30, 1999 THROUGH 12/31/98
- --------------------------------------------------------------------------------- ------------------ -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 13.84 $ 14.12
Net Investment Income (Loss) 0.30(F) 0.07
Net Realized and Unrealized Gain (Loss) on Investments (0.49) 0.03
-------- -------
Total from Investment Operations (0.19) 0.10
-------- -------
Dividends from Net Investment Income (0.30) (0.07)
Distributions from Capital Gains -- (0.31)
-------- -------
Total Distributions (0.30) (0.38)
-------- -------
Net Asset Value End of Period $ 13.35 $ 13.84
-------- -------
Total Return (1.41)%(B) 0.75%(B)
Net Assets End of Period (in thousands) $ 64 $ 65
Ratio of Expenses to Average Net Assets 0.65%(A) 0.65%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.05%(A) 0.95%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 4.40%(A) 4.75%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 3.99%(A) 4.45%(A)
Portfolio Turnover Rate 75% 100%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
85
<PAGE>
ENTERPRISE MANAGED FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED) YEAR ENDED DECEMBER 31,
SIX MONTHS ENDED --------------------------------------------------
ENTERPRISE MANAGED FUND (CLASS A) JUNE 30, 1999 1998 1997 1996 1995
- ------------------------------------------- ------------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 9.26 $ 9.25 $ 7.97 $ 6.70 $ 4.91
Net Investment Income (Loss) 0.03(F) 0.06 0.04 0.06 0.04
Net Realized and Unrealized Gain (Loss) on
Investments 0.55 0.58 1.64 1.41 1.81
------- -------- ------- ------- ------
Total from Investment Operations 0.58 0.64 1.68 1.47 1.85
------- -------- ------- ------- ------
Dividends from Net Investment Income -- (0.05) (0.04) (0.06) (0.03)
Distributions from Capital Gains -- (0.58) (0.36) (0.14) (0.03)
------- -------- -------- -------- -------
Total Distributions -- (0.63) (0.40) (0.20) (0.06)
------- -------- -------- -------- -------
Net Asset Value End of Period $ 9.84 $ 9.26 $ 9.25 $ 7.97 $ 6.70
------- -------- -------- -------- -------
Total Return(C) 6.26%(B) 7.05% 21.05% 22.08% 37.69%
Net Assets End of Period (in thousands) $168,811 $175,084 $156,608 $101,022 $47,839
Ratio of Expenses to Average Net Assets 1.45%(A) 1.50% 1.49% 1.57% 1.75%
Ratio of Expenses to Average Net Assets
(Excluding Waivers) 1.45%(A) 1.50% 1.49% 1.57% 1.90%
Ratio of Net Investment Income (Loss) to
Average Net Assets 0.67%(A) 0.57% 0.47% 1.12% 1.09%
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding Waivers) 0.67%(A) 0.57% 0.47% 1.12% 0.94%
Portfolio Turnover Rate 31% 43% 28% 33% 26%
<CAPTION>
FOR THE PERIOD
10/1/94
ENTERPRISE MANAGED FUND (CLASS A) THROUGH 12/31/94
- ------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 5.00
Net Investment Income (Loss) 0.01
Net Realized and Unrealized Gain (Loss) on
Investments (0.09)
---------
Total from Investment Operations (0.08)
---------
Dividends from Net Investment Income (0.01)
Distributions from Capital Gains --
---------
Total Distributions (0.01)
---------
Net Asset Value End of Period $ 4.91
---------
Total Return(C) (1.58)%(B)
Net Assets End of Period (in thousands) $ 7,872
Ratio of Expenses to Average Net Assets 1.75%(A)
Ratio of Expenses to Average Net Assets
(Excluding Waivers) 3.71%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets 1.30%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding Waivers) (0.32)%(A)
Portfolio Turnover Rate 27%(A)
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) YEAR ENDED DECEMBER 31,
SIX MONTHS ENDED --------------------------------------
ENTERPRISE MANAGED FUND (CLASS B) JUNE 30, 1999 1998 1997 1996
- ------------------------------------------------------------- ------------------ ------------ ------------- -----------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 9.17 $ 9.19 $ 7.93 $ 6.68
Net Investment Income (Loss) 0.01F -- (0.01) 0.02
Net Realized and Unrealized Gain (Loss) on Investments 0.53 0.57 1.63 1.41
------- -------- ------- ------
Total from Investment Operations 0.54 0.57 1.62 1.43
------- -------- ------- ------
Dividends from Net Investment Income -- (0.01) -- (0.04)
Distributions from Capital Gains -- (0.58) (0.36) (0.14)
------- -------- ------- -------
Total Distributions -- (0.59) (0.36) (0.18)
------- -------- ------- -------
Net Asset Value End of Period $ 9.71 $ 9.17 $ 9.19 $ 7.93
------- -------- ------- -------
Total Return(D) 5.89%(B) 6.31% 20.45% 21.50%
Net Assets End of Period (in thousands) $167,414 $161,552 $110,213 $57,037
Ratio of Expenses to Average Net Assets 2.00%(A) 2.05% 2.04% 2.13%
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.00%(A) 2.05% 2.04% 2.13%
Ratio of Net Investment Income (Loss) to Average Net Assets 0.12%(A) 0.02% (0.09)% 0.52%
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 0.12%(A) 0.02% (0.09)% 0.52%
Portfolio Turnover Rate 31% 43% 28% 33%
<CAPTION>
FOR THE PERIOD
5/1/95
ENTERPRISE MANAGED FUND (CLASS B) THROUGH 12/31/95
- ------------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 5.68
Net Investment Income (Loss) 0.01
Net Realized and Unrealized Gain (Loss) on Investments 1.05
-------
Total from Investment Operations 1.06
-------
Dividends from Net Investment Income (0.03)
Distributions from Capital Gains (0.03)
-------
Total Distributions (0.06)
-------
Net Asset Value End of Period $ 6.68
-------
Total Return(D) 18.38%(B)
Net Assets End of Period (in thousands) $16,792
Ratio of Expenses to Average Net Assets 2.30%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.45%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.31%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 0.14%(A)
Portfolio Turnover Rate 26%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
86
<PAGE>
ENTERPRISE MANAGED FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE MANAGED FUND (CLASS C) JUNE 30, 1999
- --------------------------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 9.09
Net Investment Income (Loss) 0.01(F)
Net Realized and Unrealized Gain (Loss) on Investments 0.61
------
Total from Investment Operations 0.62
------
Dividends from Net Investment Income --
Distributions from Capital Gains --
------
Total Distributions --
------
Net Asset Value End of Period $ 9.71
------
Total Return(D) 6.82%(B)
Net Assets End of Period (in thousands) $11,672
Ratio of Expenses to Average Net Assets 2.00%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.00%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.12%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 0.12%(A)
Portfolio Turnover Rate 31%
<CAPTION>
FOR THE PERIOD
YEAR ENDED 5/1/97
ENTERPRISE MANAGED FUND (CLASS C) DECEMBER 31, 1998 THROUGH 12/31/97
- --------------------------------------------------------------------------------- ------------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 9.21 $ 8.24
Net Investment Income (Loss) (0.01) --
Net Realized and Unrealized Gain (Loss) on Investments 0.49 1.38
------- ---------
Total from Investment Operations 0.48 1.38
------- ---------
Dividends from Net Investment Income (0.02) (0.05)
Distributions from Capital Gains (0.58) (0.36)
------- ---------
Total Distributions (0.60) (0.41)
------- ---------
Net Asset Value End of Period $ 9.09 $ 9.21
------- ---------
Total Return(D) 5.36% 16.74%(B)
Net Assets End of Period (in thousands) $11,654 $ 3,614
Ratio of Expenses to Average Net Assets 2.05% 2.06%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 2.05% 2.06%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.02% (0.18)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 0.02% (0.18)%(A)
Portfolio Turnover Rate 43% 28%(A)
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) YEAR ENDED DECEMBER 31,
SIX MONTHS ENDED -----------------------------------
ENTERPRISE MANAGED FUND (CLASS Y) JUNE 30, 1999 1998 1997 1996
- ------------------------------------------------------------- ------------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 9.25 $ 9.27 $ 7.98 $ 6.70
Net Investment Income (Loss) 0.05(F) 0.10 0.08 0.09
Net Realized and Unrealized Gain (Loss) on Investments 0.55 0.55 1.64 1.42
------ ------- ------- -------
Total from Investment Operations 0.60 0.65 1.72 1.51
------ ------- ------- -------
Dividends from Net Investment Income -- (0.09) (0.07) (0.09)
Distributions from Capital Gains -- (0.58) (0.36) (0.14)
------ ------- ------- -------
Total Distributions -- (0.67) (0.43) (0.23)
------ ------- ------- -------
Net Asset Value End of Period $ 9.85 $ 9.25 $ 9.27 $ 7.98
------ ------- ------- -------
Total Return 6.49%(B) 7.20% 21.60% 22.63%
Net Assets End of Period (in thousands) $89,437 $89,084 $80,879 $57,794
Ratio of Expenses to Average Net Assets 1.00%(A) 1.05% 1.04% 1.12%
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.00%(A) 1.05% 1.04% 1.12%
Ratio of Net Investment Income (Loss) to Average Net Assets 1.12%(A) 1.01% 0.92% 1.57%
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 1.12%(A) 1.01% 0.92% 1.57%
Portfolio Turnover Rate 31% 43% 28% 33%
<CAPTION>
FOR THE PERIOD
7/5/95
ENTERPRISE MANAGED FUND (CLASS Y) THROUGH 12/31/95
- ------------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 6.17
Net Investment Income (Loss) 0.03
Net Realized and Unrealized Gain (Loss) on Investments 0.57
-------
Total from Investment Operations 0.60
-------
Dividends from Net Investment Income (0.04)
Distributions from Capital Gains (0.03)
-------
Total Distributions (0.07)
-------
Net Asset Value End of Period $ 6.70
-------
Total Return 9.80%(B)
Net Assets End of Period (in thousands) $26,664
Ratio of Expenses to Average Net Assets 1.30%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.41%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 1.39%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 1.28%(A)
Portfolio Turnover Rate 26%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
87
<PAGE>
ENTERPRISE MONEY MARKET FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE MONEY MARKET FUND (CLASS A) JUNE 30, 1999
- ----------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 1.00
Net Investment Income (Loss) 0.02(F)
-------
Total from Investment Operations 0.02
-------
Dividends from Net Investment Income (0.02)
-------
Total Distributions (0.02)
-------
Net Asset Value End of Period $ 1.00
-------
Total Return 2.22%(B)
Net Assets End of Period (in thousands) $152,939
Ratio of Expenses to Average Net Assets 0.59%(A)
Ratio of Expenses to Average Net Assets (Excluding
Waivers) 0.59%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets 4.43%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Waivers) 4.43%(A)
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31,
------------------------------------------------------------
ENTERPRISE MONEY MARKET FUND (CLASS A) 1998 1997 1996 1995 1994
- ----------------------------------------------------- ------------ ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net Investment Income (Loss) 0.05 0.05 0.04 0.05 0.03
------- ------ ------ ------ -------
Total from Investment Operations 0.05 0.05 0.04 0.05 0.03
------- ------ ------ ------ -------
Dividends from Net Investment Income (0.05) (0.05) (0.04) (0.05) (0.03)
-------- ------- ------- ------- -------
Total Distributions (0.05) (0.05) (0.04) (0.05) (0.03)
-------- ------- ------- ------- -------
Net Asset Value End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- ------- ------- -------
Total Return 5.04% 4.69% 4.51% 5.05% 3.34%
Net Assets End of Period (in thousands) $140,490 $68,466 $59,074 $40,325 $32,334
Ratio of Expenses to Average Net Assets 0.64% 1.00% 1.00% 1.00% 1.00%
Ratio of Expenses to Average Net Assets (Excluding
Waivers) 0.64% 1.24% 1.18% 1.35% 1.33%
Ratio of Net Investment Income (Loss) to Average Net
Assets 4.91% 4.59% 4.42% 4.92% 3.30%
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Waivers) 4.91% 4.35% 4.24% 4.57% 3.08%
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED) YEAR ENDED DECEMBER 31,
SIX MONTHS ENDED ---------------------------------
ENTERPRISE MONEY MARKET FUND (CLASS B) JUNE 30, 1999 1998 1997 1996
- ------------------------------------------------------------- ------------------ ----------- ---------- ----------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net Investment Income (Loss) 0.02(F) 0.05 0.04 0.04
------- ------- ------- -------
Total from Investment Operations 0.02 0.05 0.04 0.04
------- ------- ------- -------
Dividends from Net Investment Income (0.02) (0.05) (0.04) (0.04)
------- ------- ------- -------
Total Distributions (0.02) (0.05) (0.04) (0.04)
------- ------- ------- -------
Net Asset Value End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- -------
Total Return(D) 2.22%(B) 5.04% 4.11% 3.94%
Net Assets End of Period (in thousands) $17,464 $10,147 $ 5,980 $ 1,344
Ratio of Expenses to Average Net Assets 0.59%(A) 0.64% 1.55% 1.55%
Ratio of Expenses to Average Net Assets (Excluding Waivers) 0.59%(A) 0.64% 1.79% 1.73%
Ratio of Net Investment Income (Loss) to Average Net Assets 4.43%(A) 4.91% 4.09% 3.85%
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 4.43%(A) 4.91% 3.85% 3.68%
<CAPTION>
FOR THE PERIOD
5/1/95
ENTERPRISE MONEY MARKET FUND (CLASS B) THROUGH 12/31/95
- ------------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 1.00
Net Investment Income (Loss) 0.03
--------
Total from Investment Operations 0.03
--------
Dividends from Net Investment Income (0.03)
--------
Total Distributions (0.03)
--------
Net Asset Value End of Period $ 1.00
--------
Total Return(D) 2.95%(B)
Net Assets End of Period (in thousands) $ 394
Ratio of Expenses to Average Net Assets 1.55%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.88%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 4.23%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Waivers) 3.90%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
88
<PAGE>
ENTERPRISE MONEY MARKET FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE MONEY MARKET FUND (CLASS C) JUNE 30, 1999
- --------------------------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 1.00
Net Investment Income (Loss) 0.02(F)
--------
Total from Investment Operations 0.02
--------
Dividends from Net Investment Income (0.02)
--------
Total Distributions (0.02)
--------
Net Asset Value End of Period $ 1.00
--------
Total Return(D) 2.22%(B)
Net Assets End of Period (in thousands) $5,959
Ratio of Expenses to Average Net Assets 0.59%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 0.59%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 4.43%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 4.43%(A)
<CAPTION>
FOR THE PERIOD
YEAR ENDED 5/1/97
ENTERPRISE MONEY MARKET FUND (CLASS C) DECEMBER 31, 1998 THROUGH 12/31/97
- --------------------------------------------------------------------------------- ------------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 1.00 $ 1.00
Net Investment Income (Loss) 0.05 0.02
------- --------
Total from Investment Operations 0.05 0.02
------- --------
Dividends from Net Investment Income (0.05) (0.02)
------- --------
Total Distributions (0.05) (0.02)
------- --------
Net Asset Value End of Period $ 1.00 $ 1.00
------- --------
Total Return(D) 5.04% 2.86%(B)
Net Assets End of Period (in thousands) $ 4,680 $ 1,021
Ratio of Expenses to Average Net Assets 0.63% 1.55%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 0.63% 1.85%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 4.90% 4.15%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 4.90% 3.85%(A)
</TABLE>
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
ENTERPRISE MONEY MARKET FUND (CLASS Y) JUNE 30, 1999
- --------------------------------------------------------------------------------- ------------------
<S> <C>
Net Asset Value Beginning of Period $ 1.00
Net Investment Income (Loss) 0.02(F)
--------
Total from Investment Operations 0.02
--------
Dividends from Net Investment Income (0.02)
--------
Total Distributions (0.02)
--------
Net Asset Value End of Period $ 1.00
--------
Total Return 2.22%(B)
Net Assets End of Period (in thousands) $3,062
Ratio of Expenses to Average Net Assets 0.59%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 0.59%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 4.43%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 4.43%(A)
<CAPTION>
FOR THE PERIOD
YEAR ENDED 7/17/97
ENTERPRISE MONEY MARKET FUND (CLASS Y) DECEMBER 31, 1998 THROUGH 12/31/97
- --------------------------------------------------------------------------------- ------------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 1.00 $ 1.00
Net Investment Income (Loss) 0.05 0.02
------ --------
Total from Investment Operations 0.05 0.02
------ --------
Dividends from Net Investment Income (0.05) (0.02)
------ --------
Total Distributions (0.05) (0.02)
------ --------
Net Asset Value End of Period $ 1.00 $ 1.00
------- --------
Total Return 5.04% 2.31%(B)
Net Assets End of Period (in thousands) $ 3,413 $ 2,700
Ratio of Expenses to Average Net Assets 0.65% 0.70%(A)
Ratio of Expenses to Average Net Assets (Excluding Waivers) 0.65% 0.95%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 4.92% 4.96%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 4.92% 4.71%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
89
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
June 30, 1999
- --------------------------------------------------------------------------------
1. ORGANIZATION
The Enterprise Group of Funds, Inc. ("EGF") is registered under The Investment
Company Act of 1940 as an open-end management investment company and consists of
the Growth, Equity, Growth and Income, Equity Income, Capital Appreciation,
Small Company Growth, Small Company Value, International Growth, Global
Financial Services, Government Securities, High-Yield Bond, Tax-Exempt Income,
Managed and Money Market Funds.
EGF offers Class A, B, C and Y shares. Shares of each class represent an
identical interest in the investments of their respective funds and generally
have the same rights, but are offered with different sales charge and
distribution fee arrangements. Class A shares are subject to a maximum sales
charge of 4.75 percent. Class B shares are subject to a maximum contingent sales
charge of 5 percent, which declines to zero after six years and which is based
on the lesser of net asset value at the time of purchase or redemption. Class B
shares automatically convert to Class A shares of the same fund eight years
after purchase. Class C shares are subject to a maximum contingent sales charge
of 1 percent, which declines to zero after one year and which is based on the
lesser of net asset value at the time of purchase or redemption. Class Y shares
are not subject to any sales charges.
2. SIGNIFICANT ACCOUNTING POLICIES
VALUATION OF INVESTMENTS -- Except with respect to the Money Market Fund,
investment securities, other than debt securities, listed on either a national
or foreign securities exchange or traded in the over-the-counter National Market
System are valued each business day at the last reported sale price on the
exchange on which the security is primarily traded. If there are no current day
sales, the securities are valued at their last quoted bid price. Other
securities traded over-the-counter and not part of the National Market System
are valued at their last quoted bid price. Debt securities (other than certain
short-term obligations) are valued each business day by an independent pricing
service approved by the Board of Directors. Short-term debt securities having a
remaining maturity of sixty days or less are valued at amortized cost, which
approximates market value. Any securities for which market quotations are not
readily available are valued at their fair value as determined in good faith by
the Board of Directors. Securities held by the Money Market Fund are valued on
an amortized cost basis. Under the amortized cost method, a security is valued
at its cost and any discount or premium is amortized over the period until
maturity without taking into account the impact of fluctuating interest rates on
the market value of the security unless the aggregate deviation from net asset
value as calculated by using available market quotations exceeds 1/2 of 1
percent.
SPECIAL VALUATION RISKS -- As part of its investment program, the Government
Securities Fund invests in collateralized mortgage obligations ("CMOs").
Payments of principal and interest on the mortgages are passed through to the
holders of the CMOs on the same schedule as they are received, although certain
classes of CMOs have priority over others with respect to the receipt of
prepayments on the mortgages. Therefore, depending on the type of CMOs in which
the Government Securities Fund invests, the investment may be subject to a
greater valuation risk due to prepayment than other types of mortgage-related
securities.
The high-yield securities in which the High-Yield Bond Fund may invest may be
considered speculative in regard to the issuer's continuing ability to meet
principal and interest payments. The value of the lower rated securities in
which the High-Yield Bond Fund may invest will be affected by the
creditworthiness of individual issuers, general economic and specific industry
conditions, and will fluctuate inversely with changes in interest rates. In
addition, the secondary trading market for lower quality bonds may be less
active and less liquid than the trading market for higher quality bonds.
REPURCHASE AGREEMENTS -- Each fund may acquire securities subject to repurchase
agreements. Under a typical repurchase agreement, a fund would acquire a debt
security for a relatively short period (usually for one day and not more than
one week) subject to an obligation of the seller to repurchase and of the fund
to resell the debt security at an agreed-upon higher price, thereby establishing
a fixed investment return during the fund's holding period. Under each
repurchase agreement, the fund receives, as collateral, securities whose market
value is at least equal to the repurchase price.
FUTURES CONTRACTS -- A futures contract is an agreement between two parties to
buy and sell a financial instrument at a set price on a future date. Upon
entering into such a contract, a fund is required to pledge to the broker an
amount of cash or securities equal to the minimum "initial margin" requirements
of the exchange. Pursuant to the contract, the fund
THE ENTERPRISE Group of Funds, Inc.
90
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(Continued)
- --------------------------------------------------------------------------------
June 30, 1999
- --------------------------------------------------------------------------------
agrees to receive from or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are known as
"variation margin" and are recorded by the fund as unrealized appreciation or
depreciation. When the contract is closed the fund records a realized 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.
FOREIGN CURRENCY TRANSLATION -- Securities, other assets and liabilities of the
International Growth Fund and the Global Financial Services Fund whose values
are initially expressed in foreign currencies are translated to U.S. dollars at
the bid price of such currency against U.S. dollars last quoted by a major bank
on the valuation date. Dividend and interest income and certain expenses
denominated in foreign currencies are translated to U.S. dollars based on the
exchange rates in effect on the date the income is earned and the expense is
incurred; and exchange gains and losses are realized upon ultimate receipt or
disbursement. The International Growth Fund and the Global Financial Services
Fund do not isolate that portion of their realized and unrealized gains on
investments from changes in foreign exchange rates from fluctuations arising
from changes in the market prices of the investments.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the trade date. Realized gains and losses from security
transactions are determined on the basis of identified cost and realized gains
and losses from currency transactions are determined on the basis of average
cost. Dividend income received and distributions to shareholders are recognized
on the ex-dividend date, and interest income is recognized on the accrual basis.
Premiums and discounts on securities are amortized for both financial and tax
purposes.
EXPENSES -- Each fund and class bears expenses incurred specifically on its
behalf as well as a portion of the common expenses of EGF. No class has
preferential dividend rights; differences in per share dividend rates are
generally due to differences in separate class expenses.
FEDERAL INCOME TAXES -- No provision for Federal income or excise taxes is
required, because EGF intends to continue to qualify as a regulated investment
company and distribute all of its taxable income to shareholders.
USE OF ESTIMATES IN PREPARATION OF FINANCIAL STATEMENTS -- Preparation of
financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that may affect the
reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
3. TRANSACTIONS WITH AFFILIATES
The funds are charged management fees by Enterprise Capital Management, Inc.
("ECM") for furnishing management and administrative services. ECM has
contractually agreed to limit the funds' expenses through May 1, 2000, to the
expense ratios noted below. Enterprise Fund Distributors, Inc. ("EFD"), a
wholly-owned subsidiary of ECM, serves as principal underwriter for shares of
EGF. The Directors of EGF have adopted a Distributor's Agreement and Plan of
Distribution
THE ENTERPRISE Group of Funds, Inc.
91
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(Continued)
- --------------------------------------------------------------------------------
June 30, 1999
- --------------------------------------------------------------------------------
(the "Plan") pursuant to rule 12b-1 under the Investment Company Act of 1940.
The Plan provides that each fund will pay EFD a distribution fee, accrued daily
and payable monthly. The management fee, distribution fee, and maximum expense
amounts are equal to the following annual percentage of average net assets for
each class of shares:
<TABLE>
<CAPTION>
MANAGEMENT FEE DISTRIBUTION FEE MAXIMUM EXPENSE AMOUNT
---------------- ----------------------------------- -------------------------------------------
FUND A B C Y A B C Y
- --------------------------- ------ ---------- ---------- ------ ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Growth .75% .45% 1.00% 1.00% none 1.60% 2.15% 2.15% 1.15%
Equity .75% .45% 1.00% 1.00% none 1.60% 2.15% 2.15% 1.15%
Growth and Income .75% .45% 1.00% 1.00% none 1.50% 2.05% 2.05% 1.05%
Equity Income .75% .45% 1.00% 1.00% none 1.50% 2.05% 2.05% 1.05%
Capital Appreciation .75% .45% 1.00% 1.00% none 1.75% 2.30% 2.30% 1.30%
Small Company Growth 1.00% .45% 1.00% 1.00% none 1.85% 2.40% 2.40% 1.40%
Small Company Value .75% .45% 1.00% 1.00% none 1.75% 2.30% 2.30% 1.30%
International Growth .85% .45% 1.00% 1.00% none 2.00% 2.55% 2.55% 1.55%
Global Financial Services .85% .45% 1.00% 1.00% none 1.75% 2.30% 2.30% 1.30%
Government Securities .60% .45% 1.00% 1.00% none 1.30% 1.85% 1.85% .85%
High-Yield Bond .60% .45% 1.00% 1.00% none 1.30% 1.85% 1.85% .85%
Tax-Exempt Income .50% .45% 1.00% 1.00% none 1.10% 1.65% 1.65% .65%
Managed .75% .45% 1.00% 1.00% none 1.75% 2.30% 2.30% 1.30%
Money Market .35% none none none none .70% .70% .70% .70%
</TABLE>
ECM is a wholly-owned subsidiary of The MONY Life Insurance Company, which is
wholly-owned by The MONY Group Inc. The MONY Group Inc. and its subsidiaries and
affiliates had the following investments in EGF as of June 30, 1999:
<TABLE>
<CAPTION>
FUND A B C Y
- --------------------------- ------------ ---- --------- -------------
<S> <C> <C> <C> <C>
Growth $ 812,830 -- -- $ 754,686
Equity 1,451,443 -- -- 59,636
Growth and Income -- -- -- 44,488
Equity Income 959,549 -- -- 113,155
Capital Appreciation 126,679 -- -- 197,268
Small Company Growth -- -- -- 47,231
Small Company Value 228,122 -- -- 283,485
International Growth 2,668,324 -- -- 13,947,900
Global Financial Services -- -- -- 6,090,067
Government Securities 908,623 -- -- --
High-Yield Bond 97,665 -- -- 30,580
Tax-Exempt Income -- -- $1,017 47,273
Managed 3,183,247 -- -- 78,523,061
Money Market 386,115 -- -- --
</TABLE>
ECM has subadvisory agreements with various investment advisors as Fund Managers
for the funds of EGF. The management fee, as a percentage of average net assets
of a fund, is paid to ECM, which pays a portion of the fee to the Fund Manager.
1740 Advisers, Inc., a wholly-owned subsidiary of The MONY Group Inc., is the
Fund Manager for the Equity Income Fund. For the period ended June 30, 1999, ECM
incurred subadvisory fees payable to 1740 Advisers, Inc. related to the Equity
Income Fund of $225,588, with a related payable balance of $39,982 as of June
30, 1999.
The portion of sales charges paid to MONY Securities Corporation, a wholly-owned
subsidiary of The MONY Group Inc., was $5,612,427 for the period ended June 30,
1999. The portion of sales charges paid to EFD was $1,065,120 for the period
ended June 30, 1999.
THE ENTERPRISE Group of Funds, Inc.
92
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(Continued)
- --------------------------------------------------------------------------------
June 30, 1999
- --------------------------------------------------------------------------------
EFD uses its distribution fee from EGF to pay expenses on behalf of EGF related
to the distribution and servicing of its shares. These expenses include a
service fee to securities dealers that enter into a sales agreement with EFD.
Through June 30, 1999 EFD incurred $586,633 of service fees payable to MONY
Securities Corporation.
4. FINANCIAL INSTRUMENTS
As part of each funds investment program, the International Growth Fund and the
Global Financial Services Fund utilize forward currency exchange contracts to
manage exposure to currency fluctuations and hedge against adverse changes in
connection with purchases and sales of securities. The Funds will enter into
forward contracts only for hedging purposes. The Funds may be required to set
aside liquid assets in a segregated custodial account to collateralize their
obligations. At June 30, 1999, the Funds had entered into various forward
currency exchange contracts under which they are obligated to exchange
currencies at specified future dates. Risks arise from the possible inability of
counterparties to meet the terms of their contracts and from movements in
currency values. Outstanding contracts at June 30, 1999 are as follows:
INTERNATIONAL GROWTH FUND
<TABLE>
<CAPTION>
PURCHASES NET UNREALIZED
SETTLEMENT ---------------------------------------------- APPRECIATION/
DATE RECEIVE DELIVER (DEPRECIATION)
- ------------ --------------------- ---------------------- ---------------
<S> <C> <C> <C> <C> <C>
8/24/99 JPY 550,000,000 USD 4,704,876 $ (122,344)
----------
SALES
----------------------------------------------
RECEIVE DELIVER
--------------------- ----------------------
7/2/99 USD 342,834 CHF 533,451 (198)
8/24/99 USD 9,630,900 EUR 9,000,000 315,663
8/24/99 USD 4,704,876 JPY 550,000,000 122,344
----------
437,809
----------
$ 315,465
==========
GLOBAL FINANCIAL SERVICES FUND
<CAPTION>
PURCHASES NET UNREALIZED
SETTLEMENT ----------------------------------------- APPRECIATION/
DATE RECEIVE DELIVER (DEPRECIATION)
- ------------ ------------------ -------------------- ---------------
<S> <C> <C> <C> <C> <C>
9/22/99 EUR 50,000 USD 52,210 $ (341)
------
SALES
----------------------------------------------
RECEIVE DELIVER
--------------------- ----------------------
9/22/99 USD 91,537 EUR 85,000 3,359
9/22/99 USD 50,361 JPY 6,000,000 144
9/22/99 USD 9,152 SGD 15,000 267
------
3,770
------
$3,429
======
</TABLE>
As part of its investment program, the High-Yield Bond Fund may enter into
futures contracts to hedge against anticipated future price and interest rate
changes. Risks of entering into futures contracts include: (1) the risk that the
price of the futures contracts may not move in the same direction as the price
of the securities in the various markets; (2) the risk that there will be no
liquid secondary market when the fund attempts to enter into a closing position;
(3) the risk that the fund
THE ENTERPRISE Group of Funds, Inc.
93
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(Continued)
- --------------------------------------------------------------------------------
June 30, 1999
- --------------------------------------------------------------------------------
will lose an amount in excess of the initial margin deposit; and (4) the fact
that the success or failure of these transactions for the Fund depends on the
ability of the Fund Manager to predict movements in stock, bond, and currency
prices and interest rates. There were no open futures contracts at June 30, 1999
in the High-Yield Bond Fund.
For the period ended June 30, 1999, purchases and sales proceeds of investments,
other than short-term investments, were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT OTHER INVESTMENT
OBLIGATIONS SECURITIES
---------------------------- -------------------------------
FUND PURCHASES SALES PURCHASES SALES
- --------------------------- -------------- ------------- --------------- ---------------
<S> <C> <C> <C> <C>
Growth -- -- $530,532,144 $282,507,658
Equity -- -- 7,296,747 5,105,134
Growth and Income -- -- 25,615,724 1,762,135
Equity Income -- -- 33,678,563 19,367,407
Capital Appreciation -- -- 65,802,345 39,048,420
Small Company Growth -- -- 8,860,805 9,050,874
Small Company Value -- -- 56,969,250 36,730,715
International Growth -- -- 76,776,073 75,396,344
Global Financial Services -- -- 6,055,827 645,384
Government Securities $27,727,525 $ 8,956,346 4,883,213 3,797,885
High-Yield Bond 481,758 1,982,578 46,076,943 45,062,906
Tax-Exempt Income -- -- 23,271,112 21,313,906
Managed 43,637,500 19,937,500 77,633,700 114,725,530
5. CAPITAL SHARE TRANSACTIONS
At June 30, 1999, EGF has 2,500,000,000 authorized shares at $.10 par value. The
following tables summarize the capital share activity:
<CAPTION>
GROWTH FUND EQUITY FUND GROWTH AND INCOME FUND
------------------------------- ---------------------------- ----------------------------
YEAR-TO-DATE YEAR ENDED YEAR-TO-DATE YEAR ENDED YEAR-TO-DATE YEAR ENDED
JUNE 30, DEC. 31, JUNE 30, DEC. 31, JUNE 30, DEC. 31,
1999 1998 1999 1998 1999 1998
-------------- ---------------- -------------- ------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold 16,831,377 25,016,660 301,949 672,133 588,604 502,593
Reinvestment of distributions -- 1,817,182 -- 6,246 -- 6,225
Shares redeemed (9,237,303) (12,643,429) (248,043) (173,058) (90,511) (94,462)
Net increase (decrease) 7,594,074 14,190,413 53,906 505,321 498,093 414,356
CLASS B
Shares sold 8,920,152 12,165,306 434,935 1,484,070 529,176 682,522
Reinvestment of distributions -- 1,012,396 -- 6,611 -- 6,206
Shares redeemed (1,424,076) (1,548,771) (219,627) (439,218) (90,960) (60,729)
Net increase (decrease) 7,496,076 11,628,931 215,308 1,051,463 438,216 627,999
CLASS C
Shares sold 4,025,801 5,180,277 126,621 223,366 120,567 154,095
Reinvestment of distributions -- 290,019 -- 1,143 -- 1,314
Shares redeemed (833,853) (666,966) (55,028) (38,398) (86,060) (16,707)
Net increase (decrease) 3,191,948 4,803,330 71,593 186,111 34,507 138,702
CLASS Y
Shares sold 510,063 1,619,933 3,418 8,787 63,006 95,597
Reinvestment of distributions -- 105,397 -- 11 -- 8,894
Shares redeemed (440,965) (1,513,470) -- -- (102,183) (91,693)
Net increase (decrease) 69,098 211,860 3,418 8,798 (39,177) 12,798
Total net increase (decrease) 18,351,196 30,834,534 344,225 1,751,693 931,639 1,193,855
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
94
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(Continued)
- --------------------------------------------------------------------------------
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY INCOME FUND CAPITAL APPRECIATION FUND SMALL COMPANY GROWTH FUND
--------------------------- ------------------------------ ----------------------------
YEAR-TO-DATE YEAR ENDED YEAR-TO-DATE YEAR ENDED YEAR-TO-DATE YEAR ENDED
JUNE 30, DEC. 31, JUNE 30, DEC. 31, JUNE 30, DEC. 31,
1999 1998 1999 1998 1999 1998
-------------- ------------ -------------- --------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold 378,224 693,308 1,076,046 913,983 180,899 302,759
Reinvestment of distributions 15,262 338,394 -- 548,612 -- --
Shares redeemed (439,773) (599,916) (1,081,442) (1,224,998) (115,646) (145,393)
Net increase (decrease) (46,287) 431,786 (5,396) 237,597 65,253 157,366
CLASS B
Shares sold 388,567 609,848 247,102 204,019 165,625 379,838
Reinvestment of distributions 3,037 95,849 -- 64,334 -- 72
Shares redeemed (116,589) (161,207) (51,336) (102,705) (106,008) (105,961)
Net increase (decrease) 275,015 544,490 195,766 165,648 59,617 273,949
CLASS C
Shares sold 192,661 151,702 48,083 23,429 46,378 102,779
Reinvestment of distributions 568 16,076 -- 4,328 -- 1
Shares redeemed (110,853) (27,165) (15,921) (4,125) (38,522) (25,158)
Net increase (decrease) 82,376 140,613 32,162 23,632 7,856 77,622
CLASS Y
Shares sold 249 4,152 1,156 5,239 16,382 48,468
Reinvestment of distributions 2 35 -- 443 -- --
Shares redeemed (345) -- (531) (434) (94,562) (223,611)
Net increase (decrease) (94) 4,187 625 5,248 (78,180) (175,143)
Total net increase (decrease) 311,010 1,121,076 223,157 432,125 54,546 333,794
<CAPTION>
SMALL COMPANY VALUE FUND INTERNATIONAL GROWTH FUND GLOBAL FINANCIAL SERVICES FUND
------------------------------ --------------------------- ------------------------------
FOR THE PERIOD
YEAR-TO-DATE YEAR ENDED YEAR-TO-DATE YEAR ENDED YEAR-TO-DATE OF 10/01/98
JUNE 30, DEC. 31, JUNE 30, DEC. 31, JUNE 30, THROUGH
1999 1998 1999 1998 1999 12/31/98
-------------- --------------- -------------- ------------ -------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold 6,074,890 10,236,575 501,115 524,854 535,373 258,209
Reinvestment of distributions -- 276,418 32,788 22,822 -- --
Shares redeemed (4,198,499) (6,275,721) (526,603) (627,956) (102,185) (22,324)
Net increase (decrease) 1,876,391 4,237,272 7,300 (80,280) 433,188 235,885
CLASS B
Shares sold 2,666,514 6,411,837 225,725 714,287 440,049 201,951
Reinvestment of distributions -- 217,426 13,604 6,578 -- --
Shares redeemed (1,081,536) (1,516,761) (219,074) (458,613) (64,434) (32,303)
Net increase (decrease) 1,584,978 5,112,502 20,255 262,252 375,615 169,648
CLASS C
Shares sold 1,586,061 1,622,753 88,134 170,129 68,583 40,519
Reinvestment of distributions -- 47,138 3,059 1,342 -- --
Shares redeemed (344,500) (214,262) (67,821) (51,927) (39,306) (4,351)
Net increase (decrease) 1,241,561 1,455,629 23,372 119,544 29,277 36,168
CLASS Y
Shares sold 35,303 27,544 311,764 454,733 4,104 942,373
Reinvestment of distributions -- 941 11,865 10,505 -- --
Shares redeemed (9,702) (9,455) (287,535) (414,104) (1,472) --
Net increase (decrease) 25,601 19,030 36,094 51,134 2,632 942,373
Total net increase (decrease) 4,728,531 10,824,433 87,021 352,650 840,712 1,384,074
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
95
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(Continued)
- --------------------------------------------------------------------------------
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES FUND HIGH-YIELD BOND FUND TAX-EXEMPT INCOME FUND
------------------------------ ------------------------------ ----------------------------
YEAR-TO-DATE YEAR ENDED YEAR-TO-DATE YEAR ENDED YEAR-TO-DATE YEAR ENDED
JUNE 30, DEC. 31, JUNE 30, DEC. 31, JUNE 30, DEC. 31,
1999 1998 1999 1998 1999 1998
-------------- --------------- -------------- --------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold 1,592,359 1,824,935 910,805 2,158,147 451,610 339,169
Reinvestment of distributions 108,485 247,336 163,993 434,025 21,137 88,848
Shares redeemed (1,414,569) (1,883,753) (1,166,003) (1,669,074) (504,433) (414,098)
Net increase (decrease) 286,275 188,518 (91,205) 923,098 (31,686) 13,919
CLASS B
Shares sold 897,725 2,093,943 721,949 2,209,676 119,436 178,013
Reinvestment of distributions 41,381 62,371 76,528 166,249 3,927 13,548
Shares redeemed (429,248) (942,532) (563,713) (907,108) (57,651) (76,656)
Net increase (decrease) 509,858 1,213,782 234,764 1,468,817 65,712 114,905
CLASS C
Shares sold 225,106 319,445 280,888 480,109 48,382 52,051
Reinvestment of distributions 6,197 6,516 13,944 24,727 882 2,052
Shares redeemed (112,289) (112,968) (207,348) (155,499) (11,038) (11,150)
Net increase (decrease) 119,014 212,993 87,484 348,882 38,226 42,953
CLASS Y
Shares sold 42,769 81,282 17,238 105,448 -- 4,698
Reinvestment of distributions 15,119 38,601 6,184 10,054 21 29
Shares redeemed (41,443) (149,732) (19,240) (4,531) -- --
Net increase (decrease) 119,014 (29,489) 4,182 110,971 21 4,727
Total net increase (decrease) 931,592 1,585,804 235,225 2,851,768 72,273 176,504
<CAPTION>
MANAGED FUND MONEY MARKET FUND
------------------------------ -----------------------------------
YEAR-TO-DATE YEAR ENDED YEAR-TO-DATE YEAR ENDED
JUNE 30, DEC. 31, JUNE 30, DEC. 31,
1999 1998 1999 1998
-------------- --------------- ----------------- -----------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold 2,277,169 4,571,676 309,495,742 413,364,732
Reinvestment of distributions -- 1,185,379 2,663,195 4,556,487
Shares redeemed (4,028,204) (3,768,206) (299,710,524) (345,896,926)
Net increase (decrease) (1,751,035) 1,988,849 12,448,413 72,024,293
CLASS B
Shares sold 1,898,113 6,850,169 25,020,656 32,792,113
Reinvestment of distributions -- 1,041,656 217,617 351,315
Shares redeemed (2,290,780) (2,264,094) (17,921,359) (28,976,415)
Net increase (decrease) (392,667) 10,155,919 7,316,914 4,167,013
CLASS C
Shares sold 278,794 1,068,902 14,495,897 15,657,662
Reinvestment of distributions -- 79,473 79,878 112,867
Shares redeemed (357,851) (259,472) (13,296,588) (12,111,247)
Net increase (decrease) (79,057) 888,903 1,279,187 3,659,282
CLASS Y
Shares sold 1,228,250 3,071,922 166,529 2,877,578
Reinvestment of distributions -- 669,801 57,212 131,097
Shares redeemed (1,780,649) (2,830,113) (574,198) (2,296,440)
Net increase (decrease) (552,399) 911,610 (350,457) 712,235
Total net increase (decrease) (2,775,158) 13,945,281 20,694,057 80,562,823
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
96
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(Continued)
- --------------------------------------------------------------------------------
June 30, 1999
- --------------------------------------------------------------------------------
6. TAX BASIS UNREALIZED GAIN (LOSS) OF INVESTMENTS AND DISTRIBUTIONS
At June 30, 1999, the cost of securities for Federal income tax purposes, the
aggregate gross unrealized gain for all securities for which there was an excess
of value over tax cost and the aggregate gross unrealized loss for all
securities for which there was an excess of tax cost over value were as follows:
<TABLE>
<CAPTION>
NET
UNREALIZED UNREALIZED UNREALIZED
FUND TAX COST GAIN LOSS GAIN (LOSS)
- --------------------------- ----------------- --------------- ----------------- ---------------
<S> <C> <C> <C> <C>
Growth $1,531,498,768 $516,140,378 $ (14,321,674) $501,818,704
Equity 19,249,454 2,936,335 (677,758) 2,258,577
Growth and Income 79,116,499 28,486,212 (2,512,438) 25,973,774
Equity Income 126,201,693 51,562,894 (507,984) 51,054,910
Capital Appreciation 112,410,113 61,051,554 (1,785,913) 59,265,641
Small Company Growth 24,529,286 9,628,759 (922,711) 8,706,048
Small Company Value 196,717,224 31,198,986 (13,468,035) 17,730,951
International Growth 70,919,042 6,830,500 (4,702,969) 2,127,531
Global Financial Services 12,558,235 1,886,289 (223,760) 1,662,529
Government Securities 119,035,772 125,301 (2,679,838) (2,554,537)
High-Yield Bond 120,925,755 1,162,240 (7,055,197) (5,892,957)
Tax-Exempt Income 28,374,559 539,227 (389,277) 149,950
Managed 367,788,635 85,293,928 (11,252,623) 74,041,305
</TABLE>
Income and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
futures and options transactions, foreign currency transactions, paydowns,
market discounts, losses deferred due to wash sales, investments in passive
foreign investment companies, and excise tax regulations.
Permanent book and tax basis differences relating to shareholder distributions
will result in reclassifications to paid in capital. Any taxable gain remaining
at fiscal year end is distributed in the following year.
7. SUBSEQUENT EVENTS
On July 1, 1999, EGF added three new funds -- Internet, Multi-Cap Growth and
Balanced.
In August 1999, EGF and another mutual fund under common control obtained a $50
million line of credit for short-term liquidity purposes.
THE ENTERPRISE Group of Funds, Inc.
97
<PAGE>
================================================================================
DIRECTORS AND OFFICERS
================================================================================
Directors
Victor Ugolyn
Chairman and Director
Arthur T. Dietz Arthur Howell
Director Director
William A. Mitchell, Jr. Lonnie H. Pope
Director Director
Samuel J. Foti Michael I. Roth
Director Director
Officers
Victor Ugolyn
President and Chief Executive Officer
Phillip G. Goff
Vice President
Herbert M. Williamson Catherine R. McClellan
Treasurer and Secretary
Assistant Secretary
================================================================================
<PAGE>
Investment Advisor
Enterprise Capital Management, Inc.
Atlanta Financial Center
3343 Peachtree Road, N.E.
Suite 450
Atlanta, GA 30326-1022
Distributor
Enterprise Fund Distributors, Inc.
Atlanta Financial Center
3343 Peachtree Road, N.E.
Suite 450
Atlanta, GA 30326-1022
Telephone: 1-800-432-4320
Custodian
State Street Bank and Trust Company
Boston, MA
Transfer Agent
National Financial Data Services, Inc.
330 W. 9th Street
Kansas City, MO 64105
Telephone: 1-800-368-3527
Independent Accountants
PricewaterhouseCoopers LLP
Atlanta, GA
Member - Investment Company Institute
[LOGO]
1-800-432-4320
www.enterprisefunds.com
This report is not to be used in connection with
the offering of shares of the funds unless accompanied or
preceded by an effective prospectus.
