THE ENTERPRISE Group of Funds, Inc.
[GRAPHIC]
SEMI-ANNUAL REPORT
June 30, 2000
<PAGE>
THE ENTERPRISE Group of Funds, Inc.
Aggressive Growth
Enterprise Multi-Cap Growth Fund
Enterprise Small Company Growth Fund
Enterprise Small Company Value Fund
Growth
Enterprise Growth Fund
Enterprise Capital Appreciation Fund
Enterprise Equity Fund
Enterprise Growth and Income Fund
Enterprise Equity Income Fund
Enterprise International Growth Fund
Sector
Enterprise Internet Fund
Enterprise International Internet Fund
Enterprise Global Financial Services Fund
Domestic Hybrid
Enterprise Managed Fund
Enterprise Balanced Fund
Fixed Income
Enterprise High-Yield Bond Fund
Enterprise Government Securities Fund
Enterprise Tax-Exempt Income Fund
Enterprise Money Market Fund
<PAGE>
Table of Contents
<TABLE>
<CAPTION>
Page
-----
<S> <C>
Enterprise Multi-Cap Growth Fund
Subadviser's Comments ....................... 4
Portfolio of Investments .................... 6
Enterprise Small Company Growth Fund
Subadviser's Comments ....................... 8
Portfolio of Investments .................... 10
Enterprise Small Company Value Fund
Subadviser's Comments ....................... 11
Portfolio of Investments .................... 13
Enterprise Growth Fund
Subadviser's Comments ....................... 17
Portfolio of Investments .................... 19
Enterprise Capital Appreciation Fund
Subadviser's Comments ....................... 20
Portfolio of Investments .................... 22
Enterprise Equity Fund
Subadviser's Comments ....................... 24
Portfolio of Investments .................... 26
Enterprise Growth and Income Fund
Subadviser's Comments ....................... 27
Portfolio of Investments .................... 29
Enterprise Equity Income Fund
Subadviser's Comments ....................... 31
Portfolio of Investments .................... 33
Enterprise International Growth Fund
Subadviser's Comments ....................... 35
Portfolio of Investments .................... 37
Enterprise Internet Fund
Subadviser's Comments ....................... 39
Portfolio of Investments .................... 41
Enterprise International Internet Fund
Subadviser's Comments ....................... 43
Enterprise Global Financial Services Fund
Subadviser's Comments ....................... 45
Portfolio of Investments .................... 47
Enterprise Managed Fund
Subadvisers' Comments ....................... 49
Portfolio of Investments .................... 51
Enterprise Balanced Fund
Subadviser's Comments ....................... 54
Portfolio of Investments .................... 56
Enterprise High-Yield Bond Fund
Subadviser's Comments ....................... 58
Portfolio of Investments .................... 60
Enterprise Government Securities Fund
Subadviser's Comments ....................... 66
Portfolio of Investments .................... 67
Enterprise Tax-Exempt Income Fund
Subadviser's Comments ....................... 69
Portfolio of Investments .................... 71
Enterprise Money Market Fund
Manager's Comments .......................... 73
Portfolio of Investments .................... 75
Statements of Assets and Liabilities ......... 76
Statements of Operations ..................... 78
Statements of Changes in Net Assets .......... 80
Financial Highlights ......................... 84
Notes to Financial Statements ................ 118
</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 OMITTED]
Enterprise
GROUP OF FUNDS
Dear Fellow Shareholders:
For the first six months of 2000, the Dow Jones Industrial Average declined
8.44 percent, while the Standard & Poor's 500 Stock Index fell 0.42 percent. The
technology-and-Internet laden Nasdaq Composite Index was down 2.28 percent.
According to Lipper Inc., the average diversified U.S. stock fund posted a total
return of 3.65 percent. Bond returns have also suffered from inflation fears and
the string of interest rate increases by the Federal Reserve. For the first half
of 2000, according to Lipper Inc., the average bond fund rose 2.13 percent, the
average high yield bond fund was down 1.67 percent and municipal bond funds on
average gained 3.95 percent.
New economy stocks, as they have come to be called, (technology, Internet,
telecommunications and biotechnology) led the market in both directions during
the first half of 2000. At the end of 1999 and the first quarter of 2000,
investors charged into these companies, causing a powerful rally primarily in
technology-oriented stocks.
Investors appeared to be singularly focused on owning only those stocks
associated with the Internet. This was evident in the extraordinary performance
of the new-issue market, where unproven dot-com companies climbed rapidly in
price. Even with the Federal Reserve raising interest rates six times since
June, 1999 to slow down inflation, technology stock prices soared, seemingly
unphased by the economic impact of higher interest rates.
However, extreme market moves do not last forever. In early April, investors
started letting the air out of the "new economy" balloon. The week of April 10th
saw the Nasdaq Composite Index decline 25.3 percent. While the technology sector
in general remained under considerable pressure through June, old economy
sectors such as natural resources, pharmaceuticals and real estate investment
trusts produced solid returns.
By the end of June, the stock market had refocused its attention on the
conflict between interest rates and inflation and ultimately whether the Federal
Reserve can engineer a soft landing for the economy. This means investors may
have to relearn that stock prices depend on positive corporate fundamentals, and
eventually on investor patience.
---------------------------
"We are also
delighted to congratulate
Ron Canakaris, manager
of the Enterprise Growth
Fund, on celebrating his
20th anniversary at the
helm of this fund . . ."
---------------------------
Keeping with our objective of providing our shareholders investment
opportunities available only through Enterprise and to further broaden our
investment spectrum, Enterprise on June 30 launched the Enterprise International
Internet Fund, managed by Fred Alger Management, Inc. The Fund is designed for
those investors who seek capital growth through investing in the global growth
of foreign companies with Internet-related activities. We are also delighted to
congratulate Ron Canakaris, manager of the Enterprise Growth Fund, on
celebrating his 20th anniversary at the helm of this fund, which, at NAV,
outperformed the S&P 500 Index over the one-, five-, ten-, fifteen- and
twenty-year time periods ended June 30, 2000 (Class A shares).(1)
I would also like to remind you that our Web site,
www.enterprisefunds.com, is an excellent vehicle for us to share information
with you, our shareholders. On the site, you have access to your personal
account information, educational material, as well as to details on our funds
including daily performance results. We believe you will find this information
helpful. Of course, we will continue to explore additional ways in which we can
employ technology to better serve your needs.
THE ENTERPRISE Group of Funds, Inc.
2
<PAGE>
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
multimillion-dollar portfolios on behalf of corporations, nonprofit
organizations and government entities who are able to meet minimum investment
requirements of up to $100 million. Collectively these firms manage well over
$250 billion in investment assets. Enterprise's distinctive management strategy
provides individual investors the benefits of diversification among 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.
Again, it is important to remember to maintain your long-term perspective
and not lose sight of your investment goals during this period of market
volatility. If you are thinking about putting new money to work, consider a
dollar cost averaging strategy of investing a fixed amount of dollars at set
intervals. You may lower your average cost per share by purchasing more shares
when the price is lower and fewer shares when the price is higher.(2)
Your confidence is our most important asset. We are excited about our
ability to provide you the diverse investment choices necessary to meet your
investment objectives. We encourage you to review the subadviser comments in
this semi-annual report. You will find insightful commentaries and a variety of
investment strategies for the remainder of 2000. As always, we appreciate your
support of The Enterprise Group of Funds and pledge to continue our primary
mission of adding value to your investment portfolio by providing special access
to some of the most accomplished investment firms in the industry.
Sincerely,
/s/ Victor Ugolyn
-----------------
Victor Ugolyn
Chairman, President and Chief Executive Officer
---------
(1) Past performance is no guarantee of future results. The investment return
and principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost. Enterprise Growth Fund A
shares at NAV vs. the S&P 500 Index for the one-, five-, ten-, fifteen- and
twenty-year time periods as of June 30, 2000 was 7.64 percent vs. 7.25 percent,
24.70 percent vs. 23.80 percent, 19.20 percent vs. 17.80 percent, 18.11 percent
vs. 17.64 percent and 17.98 percent vs. 17.36 percent, respectively. Load
adjusted returns for the Enterprise Growth Fund A for the one-, five-, ten-,
fifteen- and twenty-year time periods as of June 30, 2000 were 2.52 percent,
23.50 percent, 18.62 percent, 17.73 percent and 17.69 percent, respectively.
Class A shares are subject to a maximum front-end sales charge of 4.75 percent.
Other share classes are also available, for which sales charges, performance
results, and expenses will differ. The S&P 500 is an unmanaged index of common
stocks, which assumes the reinvestment of dividends and distributions. It does
not include any management fees or expenses. One cannot invest directly in an
index.
(2) A dollar cost averaging plan does not ensure a profit and does not protect
against loss in declining markets. Since dollar cost-averaging involves
continuous investing in securities regardless of the fluctuating price levels,
you should consider your financial ability to continue purchases through periods
of low price levels.
THE ENTERPRISE Group of Funds, Inc.
3
<PAGE>
Enterprise Multi-Cap Growth Fund
SUBADVISER'S COMMENTS
Fred Alger Management, Inc.
New York, New York
Investment Management
Fred Alger Management, Inc., which has approximately $21 billion in assets
under management, became the subadviser to the Fund on July 1, 1999. Alger's
normal investment minimum is $5 million.
Investment Objective
The objective of the Enterprise Multi-Cap Growth Fund is to seek long-term
capital appreciation.
Investment Strategies
The Multi-Cap Growth Fund invests primarily in growth stocks. The subadviser
believes that these companies tend to fall into one of two categories: High Unit
Volume Growth and Positive Life Cycle Change. High Unit Volume Growth companies
are those vital, creative companies that offer goods or services to a rapidly
expanding marketplace. They include both established and emerging firms,
offering new or improved products, or firms simply fulfilling an increased
demand for an existing line. Positive Life Cycle Change companies are those
companies experiencing a major change that is expected to produce advantageous
results. These changes may be as varied as new management; new products or
technologies; restructuring or reorganization; or merger and acquisition.
First Half 2000 Performance Review
The stock market experienced an extremely volatile start in 2000. Following an
enormously strong fourth quarter of 1999 and an uneventful Y2K, the market
seemed poised to continue its rally during the traditionally bullish month of
January. However, stocks struggled during January, as profit-taking and interest
rate fears weighed on most equity indices. Soaring fuel prices contributed
heavily to inflation fears as oil neared $30 per barrel. Also, third and fourth
quarter GDP numbers represented the strongest two-quarter GDP growth in more
than a decade. Against this background of higher commodity prices and
unrelenting economic expansion, the Federal Reserve raised both the Fed Funds
rate and the discount rate 0.25 percent on February 2nd. Two days before the
Federal Reserve meeting, the S&P 500 Index ended January with a negative 5.00
percent return.
February was a slightly better month for equity markets. While the S&P 500 and
the Dow Jones Industrial Average continued to flounder, technology and growth
stocks regained the momentum they had previously lost. The Nasdaq Composite and
Russell 2000 pushed strongly higher, led by many of the same companies that had
driven the market towards the end of 1999. Biotechnology stocks posted
especially strong gains. The re-emergence of growth stocks, combined with the
continued struggles of most value stocks, brought increased public attention to
the ongoing bifurcated nature of the market.
While the media was shining a spotlight on "new economy" stocks, March rolled
around and the market quickly changed its pace. Many technology-oriented, new
economy growth stocks corrected severely during March, driven down by valuation
concerns and sector rotations. Money flowed out of technology stocks and into
so-called "old economy" stocks, including financials, pharmaceuticals and
retailers. Many of the trading days during March saw the Dow moving strongly in
one direction and the Nasdaq moving decisively in the other, with each index
taking turns in the lead. However, a reversal of fortunes was clearly the
general trend, with the Dow advancing while the Nasdaq was retreating. As March
neared its close, the market continued to struggle with the conflict between the
new economy and the old economy. The Federal Reserve also bumped interest rates
by another 0.25 percent on March 21st, adding to interest rate fears.
Alarmingly, on April 4th, the Nasdaq fell in excess of 500 points to an
intra-day low of 3,649. Despite staging a strong intra-day recovery, the Nasdaq
continued to plummet throughout the first part of April, bottoming on April 17th
THE ENTERPRISE Group of Funds, Inc.
4
<PAGE>
Enterprise Multi-Cap Growth Fund -- (Continued)
SUBADVISER'S COMMENTS
to a low of 3227. This represented a drop of more than 37 percent from high to
low, which certainly qualifies as a full-fledged bear market. Equity markets
continued to be extraordinarily volatile throughout the remainder of April, with
most indices fluctuating wildly amidst an overall minor recovery. However, the
market's recovery was extremely short-lived. The Nasdaq's plummet began anew
during May, before finally bottoming at 3043 on May 24th. This brought the total
drop in the technology heavy index to 41 percent. While the Dow and other
value-oriented indices did fare somewhat better than the Nasdaq over this time
span, losses were widespread across the board.
Most equity market indices succeeded in rallying during late May and June. From
its May 24th low to its June 22nd high, the Nasdaq returned in excess of 33
percent, before retreating somewhat by June 30. This recovery was brought on
primarily by a series of economic reports that indicated a slowing of the
economy. Perhaps the most significant report was the May employment report,
which showed an increase in the unemployment rate to 4.1 percent. After the
Federal Reserve had hiked interest rates by 0.50 percent during their May
meeting, the employment report effectively soothed concerns about potential
rampant interest rate increases. By the time the Federal Reserve met again in
late June, widespread interest rate and inflation concerns had been greatly
alleviated. On June 28th, the Federal Reserve announced that it would not raise
rates, thereby giving further credibility to the notion that the economy has
indeed been slowing.
The top ten holdings represented slightly more than one-quarter of the Fund's
net assets. In descending order, the largest positions were JDS Uniphase
Corporation (3.76 percent), Microsoft Corporation (3.40 percent), Cisco Systems
Inc. (3.08 percent), LSI Logic Corporation (2.61 percent), Texas Instruments
Inc. (2.50 percent), Sprint PCS (2.48 percent), Amgen Inc. (2.31 percent), Intel
Corporation (2.29 percent), Micron Technology Inc. (2.26 percent) and Clear
Channel Communications Inc. (2.13 percent). The Multi-Cap Growth Fund is
primarily weighted towards large-cap stocks. However, a few smaller companies
are also represented in the Fund, most of which are mid-cap stocks. The
Multi-Cap Growth Fund's heavy overweighting in the technology sector negatively
impacted the performance of the Fund during the first half of the year.
Future Investment Strategy
The last time serious tightening occurred was 1994 when the Federal Reserve
doubled the Fed Funds rate from 3 percent to 6 percent, between April 1994 and
December 1994. A strong sell-off ensued and the highs were not revisited until
early 1995 when the tightening ended. It is Alger's sense that by August, the
Federal Reserve will no longer be inclined to raise rates. Of course this will
depend on whether economic news continues to show a moderating economy. If it
does, there may be a sharp rally in both the bond and stock markets in the
second half of the year, similar to early 1995.
Regardless of market conditions, Alger will persist in emphasizing individual
security selection through thorough, internal research conducted by talented
analysts. Looking ahead, Alger plans to continue to seek out and invest in
companies that it believes will grow their earnings rapidly and consistently.
The views expressed in this report reflect those of the subadviser only through
the end of the period of the report as stated on the cover. The subadviser's
views are subject to change at any time based on market and other conditions.
THE ENTERPRISE Group of Funds, Inc.
5
<PAGE>
Enterprise Multi-Cap Growth Fund
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 93.53%
----------------------------------------------------------------------
Advertising -- 0.48%
----------------------------------------------------------------------
Omnicom Group Inc. ........................ 13,700 $ 1,220,156
Biotechnology -- 4.27%
----------------------------------------------------------------------
Affymetrix Inc. (a) ....................... 12,500 2,064,063
Amgen Inc. (a) ............................ 83,200 5,844,800
Genentech Inc. (a) ........................ 16,700 2,872,400
----------
10,781,263
Broadcasting -- 3.26%
----------------------------------------------------------------------
AT&T Corporation - Liberty Media
Group (Class A) (a) ..................... 117,400 2,846,950
Clear Channel Communications Inc. (a) 71,800 5,385,000
----------
8,231,950
Business Services -- 1.35%
----------------------------------------------------------------------
Ariba Inc. (a) ............................ 34,800 3,412,031
Cable -- 0.95%
----------------------------------------------------------------------
Comcast Corporation (a) ................... 28,650 1,160,325
Cox Communications Inc. (Class A) (a) 27,000 1,230,188
----------
2,390,513
Communications -- 6.80%
----------------------------------------------------------------------
Brocade Communications Systems Inc.
(a) ..................................... 6,500 1,192,648
JDS Uniphase Corporation (a) .............. 79,280 9,504,469
PMC-Sierra Inc. (a) ....................... 19,000 3,376,062
SDL Inc. (a) .............................. 10,900 3,108,544
----------
17,181,723
Computer Hardware -- 6.66%
----------------------------------------------------------------------
Cisco Systems Inc. (a) .................... 122,300 7,773,694
Dell Computer Corporation (a) ............. 96,800 4,773,450
Hewlett-Packard Company ................... 34,200 4,270,725
----------
16,817,869
Computer Services -- 5.41%
----------------------------------------------------------------------
America Online Inc. (a) ................... 86,500 4,562,875
CNET Networks Inc. (a) .................... 12,700 311,944
Sun Microsystems Inc. (a) ................. 29,600 2,691,750
VeriSign Inc. (a) ......................... 13,800 2,435,700
Yahoo! Inc. (a) ........................... 29,650 3,672,894
----------
13,675,163
Computer Software -- 12.16%
----------------------------------------------------------------------
Commerce One Inc. (a) ..................... 45,400 2,060,734
Exodus Communications Inc. (a) ............ 74,200 3,417,838
i2 Technologies Inc. (a) .................. 28,205 2,940,812
Microsoft Corporation (a) ................. 107,300 8,584,000
Oracle Corporation (a) .................... 43,300 3,639,906
Phone.com Inc. (a) ........................ 31,700 2,064,463
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
RealNetworks Inc. (a) ..................... 16,100 $ 814,056
Veritas Software Corporation (a) .......... 31,500 3,559,992
Vignette Corporation (a) .................. 70,300 3,656,698
----------
30,738,499
Electronics -- 3.43%
----------------------------------------------------------------------
Applied Materials Inc. (a) ................ 54,300 4,920,938
Broadcom Corporation (Class A) (a) ........ 17,100 3,743,831
----------
8,664,769
Finance -- 0.51%
----------------------------------------------------------------------
Morgan Stanley Dean Witter &
Company ................................. 15,400 1,282,050
Health Care -- 0.83%
----------------------------------------------------------------------
Medtronic Inc. ............................ 42,000 2,092,125
Manufacturing -- 1.93%
----------------------------------------------------------------------
Corning Inc. .............................. 18,100 4,884,738
Misc. Financial Services -- 2.22%
----------------------------------------------------------------------
American Express Company .................. 19,350 1,008,619
Citigroup Inc. ............................ 76,300 4,597,075
----------
5,605,694
Oil Services -- 2.31%
----------------------------------------------------------------------
BJ Services Company (a) ................... 23,800 1,487,500
Halliburton Company ....................... 66,850 3,154,484
Nabors Industries Inc.(a) ................. 28,800 1,197,000
----------
5,838,984
Pharmaceuticals -- 1.03%
----------------------------------------------------------------------
Celgene Corporation (a) ................... 23,700 1,395,337
Eli Lilly & Company ....................... 12,100 1,208,488
----------
2,603,825
Retail -- 7.86%
----------------------------------------------------------------------
eBay Inc. (a) ............................. 97,400 5,290,037
Home Depot Inc. ........................... 85,450 4,267,159
Safeway Inc. (a) .......................... 114,700 5,175,838
Wal-Mart Stores Inc. ...................... 89,100 5,134,388
----------
19,867,422
Semiconductors -- 16.54%
----------------------------------------------------------------------
Altera Corporation (a) .................... 49,200 5,015,325
Applied Micro Circuits Corporation (a) 36,000 3,555,000
ASM Lithography Holding (a) ............... 55,700 2,457,762
Conexant Systems Inc. (a) ................. 23,200 1,128,100
Intel Corporation ......................... 43,300 5,788,669
Linear Technology Corporation ............. 45,700 2,921,944
LSI Logic Corporation (a) ................. 121,900 6,597,837
Teradyne Inc.(a) .......................... 31,400 2,307,900
Texas Instruments Inc. .................... 92,000 6,319,250
Vitesse Semiconductor Corporation (a) 59,100 4,347,544
Xilinx Inc. (a) ........................... 16,500 1,362,281
----------
41,801,612
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
6
<PAGE>
Enterprise Multi-Cap Growth Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Technology -- 4.23%
----------------------------------------------------------------------
Agilent Technologies Inc. (a) ............ 13,043 $ 961,921
Foundry Networks Inc. (a) ................ 8,000 884,000
Micron Technology Inc. (a) ............... 64,800 5,706,450
Waters Corporation (a) ................... 25,100 3,132,794
----------
10,685,165
Telecommunications -- 4.88%
----------------------------------------------------------------------
Allegiance Telecom Inc. (a) .............. 32,500 2,080,000
Amdocs Ltd. (a) .......................... 31,000 2,379,250
Efficient Networks Inc. (a) .............. 18,500 1,360,906
LM Ericsson Telephone Company
(ADR) .................................. 131,200 2,624,000
McLeodUSA Inc. (a) ....................... 53,400 1,104,713
Nortel Networks Corporation .............. 40,600 2,770,950
----------
12,319,819
Wireless Communications -- 6.42%
----------------------------------------------------------------------
Motorola Inc. ............................ 137,700 4,001,906
Nextel Communications Inc. (Class A)
(a) .................................... 36,800 2,251,700
Nokia Corporation (Class A) (ADR) ........ 74,400 3,715,350
Sprint PCS (a) ........................... 105,200 6,259,400
----------
16,228,356
----------
Total Common Stocks
(Identified cost $219,078,435)...................... 236,323,726
---------------------------------------------------- ----------
Commercial Paper -- 5.53%
----------------------------------------------------------------------
Baus Funding
6.72% due 07/14/00 .....................$6,000,000 5,985,440
Countrywide Home Loans Inc.
6.78% due 07/14/00 ..................... 2,000,000 1,995,103
Nestle Capital Corporation
6.66% due 07/07/00 ..................... 6,000,000 5,993,340
----------
Total Commercial Paper
(Identified cost $13,973,883)....................... 13,973,883
---------------------------------------------------- ----------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Repurchase Agreement -- 2.27%
----------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 5.50% due
07/03/00, Maturity Value
$5,728,624
Collateral: U.S. Treasury Bond
$6,430,000, 5.25% due 02/15/29,
Value $5,970,317 .......................$5,726,000 $ 5,726,000
----------
Total Repurchase Agreement
(Identified cost $5,726,000)........................ 5,726,000
----------------------------------------------------------------------
Total Investments
(Identified cost $238,778,318)...................... $256,023,609
Other Assets Less Liabilities -- (1.33)% ........... 3,364,225
----------
Net Assets -- 100% ................................. $252,659,384
----------------------------------------------------------------------
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipts.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
7
<PAGE>
Enterprise Small Company Growth Fund
SUBADVISER'S COMMENTS
William D. Witter, Inc.
New York, New York
Investment Management
William D. Witter, Inc., which has approximately $1.6 billion in assets under
management, became subadviser to the Fund on September 2, 1998. Witter's normal
investment minimum 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 subadviser 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 subadviser will not buy a
stock if its price-earnings ratio exceeds its growth rate. By using this
valuation parameter, the subadviser believes it moderates some of the inherent
volatility in the small capitalization sector of the market. Securities will be
sold when the subadviser 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
subadviser'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 2000 Performance Review
The year began with a burst of appreciation. The intense investor demand for
technology issues of 1999 carried over into the New Year, boosted by the
successes of overcoming potential Y2K problems. Reports of historically strong,
real GDP growth in the 4th quarter, now measured to have been 7.3 percent, were
also part of the background. By early March, what appeared to be isolated
problems in some of the software companies held in the Fund became a trend. The
Fund's holdings in this sector included securities such as Kronos, Inc., Legato
Systems, and Pervasive Software, amounting to 17 percent of the Fund. The
central issue was a post-Y2K lack of interest for non-Internet related,
information technology purchases. In addition, the latter two companies had to
restate earnings.
By late March, investors became concerned that the Federal Reserve's attempt to
moderate the economic growth rate to a sustainable level was not working. In
addition, the price of oil, which started the year at $25.60 per barrel, was in
the $28 to $30 range. Low inflation, which was a cornerstone of investor
confidence, now appeared to be ending. As institutions and individuals fled the
market, the sector on which they concentrated was technology, which had done so
well for fifteen months. The reasoning was that an eventual slow growth or
recessionary economy would lead to a reduction in capital spending, including
technology.
By mid-second quarter, many large-capitalization issues were off from their
March highs. Small technology companies fared much worse. For instance, the
common stock of Nanometrics, which designs and manufactures metrology systems,
started the year at a price of $20 per share reached $52 in late February and
was back to $20 in early May. The fundamentals of this company and of several
other similar ones in the Fund did not change materially during the period.
During January and February, the Fund reduced several holdings including
Nanometrics, Exchange Applications, Aurora Biosciences, and AstroPower as they
reached levels not substantiated by their near-term prospects. In most instances
the positions were rebuilt at lower prices during the second quarter. In
addition to technology, other cyclical growth sectors such as transportation
were also negatively impacted.
Future Investment Strategy
Witter plans to maintain the Fund in a fully invested position, as Witter
believes that small company growth stocks, in general, are reasonably valued.
In the technology sector, Witter expects to reduce the commitment in the
semi-conductor equipment group before year-end. While these companies may
experience 50 percent and higher earnings growth at particular points in their
THE ENTERPRISE Group of Funds, Inc.
8
<PAGE>
Enterprise Small Company Growth Fund -- (Continued)
SUBADVISER'S COMMENTS
cycle, it will be important to reduce or even eliminate this exposure before the
next significant decrease in demand for their products occurs. As of now, many
semi-conductor manufacturers are moving to 12" from 8" wafers and have unusually
large needs for new equipment.
One segment of technology that Witter plans to increase is "B2B" Internet
software. While the Fund holds two issues in this category now, Excelon and
IntraNet Solutions, Witter believes the prospects could be very favorable.
Witter also plans to add telecommunications as a second sub-sector of
technology. Healthcare, the second largest sector, is also a fertile ground for
new investments. Drug discovery and cancer diagnosis and therapy are two key
areas in which Witter looks for new opportunities.
Outsourcing is a third secular growth category to which additions may be made.
Air transportation, 8.3 percent of the Fund, may do better in the moderate
growth environment that Witter anticipates, along with at least stable if not
declining energy costs.
For the current fiscal year through June 30th, the turnover rate was 29 percent.
While part of Witter's philosophy incorporates a goal of achieving long-term
capital appreciation, if the January/February "buy at any price" psychology
returns, additional sales will be made.
There are specific risks associated with investments in small company stocks.
Limited volume and frequency of trading may result in greater price deviations,
and smaller capitalization companies may experience higher growth rates and
higher failure rates than large companies.
The views expressed in this report reflect those of the subadviser only through
the end of the period of the report as stated on the cover. The subadviser's
views are subject to change at any time based on market and other conditions.
[GRAPHIC OMITTED]
www.enterprisefunds.com
THE ENTERPRISE Group of Funds, Inc.
9
<PAGE>
Enterprise Small Company Growth Fund
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 95.43%
------------------------------------------------------------------------
Aerospace -- 1.25%
------------------------------------------------------------------------
AAR Corporation ........................... 87,600 $ 1,051,200
Business Services -- 8.20%
------------------------------------------------------------------------
Charles River Associates Inc. (a) ......... 98,400 1,734,300
Labor Ready Inc. (a) ...................... 72,750 481,969
Maximus Inc. (a) .......................... 69,750 1,543,218
On Assignment Inc. (a) .................... 103,600 3,159,800
-------------
6,919,287
Computer Hardware -- 1.78%
------------------------------------------------------------------------
Overland Data Inc. (a) .................... 108,400 1,504,050
Computer Services -- 9.25%
------------------------------------------------------------------------
Integral Systems Inc. (a) ................. 73,500 1,231,125
Mapinfo Corporation (a) ................... 81,800 3,323,125
National Computer Systems Inc. ............ 66,000 3,250,500
-------------
7,804,750
Computer Software -- 7.98%
------------------------------------------------------------------------
Excelon Corporation (a) ................... 168,600 1,338,263
Exchange Applications Software (a) ........ 115,300 3,069,862
IntraNet Solutions Inc. (a) ............... 28,000 1,074,500
Saga Systems Inc. (a) ..................... 100,500 1,249,969
-------------
6,732,594
Electrical Equipment -- 4.29%
------------------------------------------------------------------------
Electro Scientific Industries Inc (a) ..... 46,800 2,060,662
Woodhead Industries ....................... 85,400 1,558,550
-------------
3,619,212
Electronics -- 14.59%
------------------------------------------------------------------------
Applied Science & Technology Inc. (a) 50,400 1,304,100
Comptek Research Inc. (a) ................. 160,000 2,840,000
Cymer Inc. (a) ............................ 48,800 2,330,200
Nanometrics Inc. (a) ...................... 68,800 2,833,700
Veeco Instruments Inc. (a) ................ 41,000 3,003,250
-------------
12,311,250
Manufacturing -- 9.84%
------------------------------------------------------------------------
AstroPower Inc. (a) ....................... 108,800 2,951,200
Flow International Corporation (a) ........ 96,000 960,000
Genus Inc. (a) ............................ 107,000 876,063
Meade Instruments Corporation (a) ......... 42,000 1,055,250
Mueller Industries Inc. (a) ............... 39,000 1,092,000
PRI Automation Inc. (a) ................... 21,000 1,373,203
-------------
8,307,716
Medical Instruments -- 12.63%
------------------------------------------------------------------------
Advanced Neuromodulation Systems (a) ...... 46,000 770,500
Candela Corporation (a) ................... 193,500 1,765,688
Cytyc Corporation (a) ..................... 63,400 3,383,975
Staar Surgical Company (a) ................ 84,500 945,344
Theragenics Corporation (a) ............... 204,000 1,746,750
Varian Medical Systems Inc. (a) ........... 52,300 2,046,237
-------------
10,658,494
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Medical Services -- 4.45%
------------------------------------------------------------------------
Impath Inc. (a) ........................... 69,300 $ 3,759,525
Security & Investigation Services -- 1.03%
------------------------------------------------------------------------
Barringer Technologies Inc. (a) ........... 126,100 866,938
Technology -- 7.31%
------------------------------------------------------------------------
Aurora Bioscience Corporation (a) ......... 33,300 2,270,644
Catalytica Inc. (a) ....................... 179,550 1,975,050
Digital Lightwave Inc. (a) ................ 384 38,592
Trikon Technologies Inc. (a) .............. 99,100 1,882,900
-------------
6,167,186
Telecommunications -- 2.78%
------------------------------------------------------------------------
AVT Corporation (a) ....................... 55,000 405,625
Globecomm Systems Inc. (a) ................ 93,400 1,284,250
Hello Direct Inc. (a) ..................... 55,200 655,500
-------------
2,345,375
Transportation -- 8.31%
------------------------------------------------------------------------
Amtran Inc. (a) ........................... 87,500 1,088,281
Atlas Air Inc. (a) ........................ 81,900 2,938,162
Ryanair Holdings (ADR) (a) ................ 36,000 1,314,000
Skywest Inc. .............................. 45,100 1,671,519
-------------
7,011,962
Travel/Entertainment/Leisure -- 1.74%
------------------------------------------------------------------------
Polaris Industries Inc. ................... 46,000 1,472,000
-------------
Total Common Stocks
(Identified cost $67,834,265).......................... 80,531,539
------------------------------------------------------- -------------
Commercial Paper -- 4.56%
------------------------------------------------------------------------
Exxon Asset Management Company
6.53% due 07/03/00 ...................... $2,589,000 2,588,061
Morgan Stanley Dean Witter 6.85%
due 07/05/00 ............................ 1,266,000 1,265,036
-------------
Total Commercial Paper
(Identified cost $3,853,097)........................... 3,853,097
------------------------------------------------------- -------------
Total Investments
(Identified cost $71,687,362).......................... $ 84,384,636
Other Assets Less Liabilities -- 0.01% ................ 4,784
-------------
Net Assets -- 100% .................................... $ 84,389,420
------------------------------------------------------- -------------
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipt.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
10
<PAGE>
Enterprise Small Company Value Fund
SUBADVISER'S COMMENTS
Gabelli Asset Management Company
Rye, New York
Investment Management
Gabelli Asset Management Company, which manages approximately $9.6 billion for
institutional clients and whose normal investment minimum is $1 million, became
subadviser to 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 subadviser believes are undervalued -- that
is, the stock's market price does not fully reflect the company's value. The
subadviser uses a proprietary research technique to determine which stocks have
a market price that is less that the "private market value" or what an investor
would pay for the company. The subadviser 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 2000 Performance Review
The first half of the year began with a rally in "new economy" stocks. In the
first quarter, momentum investing was considerably more rewarding than owning
stocks representing fundamental values. In the last week of the first quarter,
the Fund saw a rotation out of the technology sector and into value sectors. In
the second quarter, small-cap stocks demonstrated surprising resilience. The
high-octane technology stocks languished before getting back on pace at the end
of the first half. The Fund continues to be underweighted in this sector.
Performance in the first half of the year was driven by merger and acquisition
activity in some of the Fund's holdings. Many exceptional opportunities existed
for value investors, where high quality companies were often shunned. Typically,
whenever such a disparity exists between a company's intrinsic value and its
price in the public market, something happens to close that gap. Recently, that
catalyst has been a deal. The best performers in the first half were involved in
takeovers or financial restructurings. These included Jackpot Enterprises,
Celestial Seasonings, General Cigar, Pioneer Group, Wynn's International, Mark
IV Industries and Bush Boake Allen.
Future Investment Strategy
The Federal Reserve's preemptive strike against inflation seems to be working.
There is finally evidence of economic deceleration. Housing starts and home
sales are down substantially, and with the exception of oil, commodity prices
have flattened. The most recently released employment numbers were relatively
benign. The U.S. may be returning to a "Goldilocks" economy -- not too hot, not
too cold, but just right -- that may propel stocks higher. Ideally, there may be
a much broader market advance in which quality companies in a wider range of
industries participate.
What can go wrong? Gabelli sees several potential negative threats. The labor
market remains tight and the threat of wage driven inflation is quite real.
Despite six Federal Reserve rate hikes over the last twelve months, the economy
is still growing at a pace that troubles the monetary authorities and may lead
to even higher short- and long-term interest rates. Also, it is an election
year. While the campaign has been a relatively quiet one, the rhetoric is sure
to heat up as we approach November. Political posturing on economic issues,
principally how to squander the growing
THE ENTERPRISE Group of Funds, Inc.
11
<PAGE>
Enterprise Small Company Value Fund -- (Continued)
SUBADVISER'S COMMENTS
budget surplus, may rattle the financial markets. Finally, while there are large
pockets of very attractive fundamental values in the equities market, many
stocks are still richly priced relative to historic norms.
Of less widespread concern is the soaring balance of trade deficit. Thus far,
the world has been happy to finance this deficit by buying U.S. stocks and
bonds. However, if inflation continues to trend higher and the U.S financial
markets continue to sputter, international investors may seek opportunities
elsewhere. If the international demand dries up, the very favorable
supply/demand dynamics the U.S. financial markets have enjoyed over the last
decade may be disrupted.
There are specific risks associated with investments in small company stocks.
Limited volume and frequency of trading may result in greater price deviations,
and smaller capitalization companies may experience higher growth rates and
higher failure rates than large companies.
The views expressed in this report reflect those of the subadviser only through
the end of the period of the report as stated on the cover. The subadviser's
views are subject to change at any time based on market and other conditions.
[GRAPHIC OMITTED]
www.enterprisefunds.com
THE ENTERPRISE Group of Funds, Inc.
12
<PAGE>
Enterprise Small Company Value Fund
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 93.94%
---------------------------------------------------------------------
Advertising -- 0.66%
--------------------------------------------------------------------
Ackerley Group Inc. ...................... 140,000 $ 1,645,000
BOWLIN Outdoor Advertising &
Travel Center Inc. (a) ................. 60,000 382,500
-----------
2,027,500
Aerospace -- 4.10%
---------------------------------------------------------------------
AAR Corporation .......................... 38,000 456,000
Ametek Inc. .............................. 120,000 2,100,000
Curtiss-Wright Corporation ............... 28,000 1,041,250
GenCorp Inc. ............................. 310,000 2,480,000
Kaman Corporation (Class A) .............. 95,000 1,015,312
Moog Inc. (Class A) (a) .................. 20,000 527,500
Sequa Corporation (Class A) (a) .......... 19,000 725,563
Sequa Corporation (Class B) (a) .......... 30,000 1,732,500
SPS Technologies Inc. (a) ................ 62,000 2,545,875
-----------
12,624,000
Apparel & Textiles -- 0.02%
---------------------------------------------------------------------
Carlyle Industries Inc. (a) .............. 154,609 77,305
Automotive -- 6.42%
---------------------------------------------------------------------
A. O. Smith Corporation .................. 15,000 314,063
A. O. Smith Corporation (Class A) ........ 5,000 100,625
Borg-Warner Automotive Inc. .............. 55,000 1,931,875
Clarcor Inc. ............................. 62,000 1,232,250
Earl Scheib Inc. (a) ..................... 85,000 265,625
Federal-Mogul Corporation ................ 120,000 1,147,500
Lund International Holdings Inc. (a) ..... 30,000 142,500
Midas Inc. ............................... 115,000 2,300,000
Modine Manufacturing Company ............. 108,000 2,916,000
Navistar International Corporation (a) 90,000 2,795,625
Standard Motor Products Inc. ............. 120,000 1,020,000
Superior Industries International Inc. ... 90,000 2,317,500
Tenneco Automotive Inc. .................. 200,000 1,050,000
Wynns International Inc. ................. 98,326 2,230,771
-----------
19,764,334
Broadcasting -- 9.28%
---------------------------------------------------------------------
AT&T Corporation - Liberty Media
Group (Class A) (a) .................... 52,000 1,261,000
BHC Communications Inc.
(Class A) (a) .......................... 19,500 2,964,000
Chris-Craft Industries Inc. (a) .......... 141,540 9,350,486
Fisher Companies Inc. .................... 33,000 2,524,500
Granite Broadcasting Corporation (a) ..... 180,000 1,327,500
Gray Communications Systems Inc. ......... 55,000 539,688
Gray Communications Systems Inc.
(Class B) .............................. 55,000 536,250
Paxson Communications
Corporation (a) ........................ 145,000 1,160,000
United Television Inc. ................... 50,600 6,514,750
UnitedGlobalCom Inc. (a) ................. 25,000 1,168,750
Young Broadcasting Inc. (a) .............. 47,000 1,207,312
-----------
28,554,236
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Building & Construction -- 0.45%
---------------------------------------------------------------------
Core Materials Corporation (a) ........... 200,000 $ 400,000
Huttig Building Products Inc. (a) ........ 100,000 412,500
Salem Communications
Corporation (a) ........................ 63,000 584,719
-----------
1,397,219
Business Services -- 0.87%
---------------------------------------------------------------------
Nashua Corporation (a) ................... 108,000 891,000
National Processing Inc. (a) ............. 143,000 1,787,500
-----------
2,678,500
Cable -- 3.48%
---------------------------------------------------------------------
Cablevision Systems Corporation
(Class A) (a) .......................... 70,000 4,751,250
Lamson & Sessions Company (a) ............ 52,000 796,250
Mercom Inc. (a) (d) ...................... 135,000 1,620,000
Rogers Communications Inc.
(Class B) (a) .......................... 115,000 3,277,500
TCI Satellite Entertainment Inc.
(Class A) (a) .......................... 30,000 260,625
-----------
10,705,625
Chemicals -- 3.91%
---------------------------------------------------------------------
Bush Boake Allen Inc. (a) ................ 52,000 2,275,000
Church & Dwight Company Inc. ............. 15,000 270,000
Ferro Corporation ........................ 100,000 2,100,000
Great Lakes Chemical Corporation ......... 80,000 2,520,000
Lilly Industrial Inc. .................... 15,000 450,938
McWhorter Technologies Inc. (a) .......... 95,000 1,846,562
OMNOVA Solutions Inc. .................... 160,000 1,000,000
Sybron Chemicals Inc. (a) ................ 72,000 1,575,000
-----------
12,037,500
Communications -- 0.02%
---------------------------------------------------------------------
Western Wireless Corporation (a) ......... 1,000 54,500
Computer Hardware -- 0.00%
---------------------------------------------------------------------
Cerion Technologies Inc. (a) (d) ......... 120,000 0
Computer Services -- 0.02%
---------------------------------------------------------------------
Tyler Technologies Inc. (a) .............. 25,000 64,063
Computer Software -- 0.84%
---------------------------------------------------------------------
BARRA Inc. (a) ........................... 8,000 396,500
Policy Management Systems
Corporation (a) ........................ 50,000 768,750
Primark Corporation (a) .................. 38,000 1,415,500
-----------
2,580,750
Consumer Durables -- 0.03%
---------------------------------------------------------------------
Noel Group Liquidating Trust Units
(a) (d) (f) ............................ 15,000 9,900
Noel Group Units (a) (d) (f) ............. 15,000 0
Oneida Ltd. .............................. 5,000 88,750
-----------
98,650
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
13
<PAGE>
Enterprise Small Company Value Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Consumer Products -- 0.30%
-----------------------------------------------------------------------
Department 56 Inc. (a) ..................... 50,000 $ 550,000
Martha Stewart Living Inc. (a) ............. 2,000 44,000
Mikasa Inc. ................................ 30,000 330,000
-----------
924,000
Consumer Services -- 0.16%
-----------------------------------------------------------------------
Berlitz International Inc. (a) ............. 50,000 450,000
Loewen Group Inc. (ADR) (a) ................ 100,000 53,000
-----------
503,000
Drugs & Medical Products -- 0.13%
-----------------------------------------------------------------------
Landauer Inc. .............................. 25,000 389,063
Electrical Equipment -- 4.44%
-----------------------------------------------------------------------
Ampco-Pittsburgh Corporation ............... 59,000 656,375
Donaldson Company Inc. ..................... 35,000 691,250
Oak Technology Inc. (a) .................... 260,000 5,606,250
Selas Corporation of America ............... 115,000 848,125
SL Industries Inc. ......................... 112,000 1,092,000
Thomas Industries Inc. ..................... 50,000 884,375
UCAR International Inc. (a) ................ 180,000 2,351,250
Western Resources Inc. ..................... 100,000 1,550,000
-----------
13,679,625
Electronics -- 0.06%
-----------------------------------------------------------------------
Power-One Inc. (a) ......................... 1,500 170,906
Energy -- 0.06%
-----------------------------------------------------------------------
Kaneb Services Inc. (a) .................... 50,000 200,000
Entertainment & Leisure -- 3.72%
-----------------------------------------------------------------------
Bull Run Corporation (a) ................... 100,000 206,250
Gaylord Entertainment Company (a) .......... 138,000 2,967,000
GC Companies Inc. (a) ...................... 113,000 2,528,375
Hearst-Argyle Television Inc. (a) .......... 12,000 234,000
Jackpot Enterprises Inc. (a) ............... 160,000 2,020,000
Sinclair Broadcast Group Inc. (a) .......... 115,000 1,265,000
TV Guide Inc. (Class A) (a) ................ 65,000 2,226,250
-----------
11,446,875
Finance -- 1.75%
-----------------------------------------------------------------------
Advest Group Inc. .......................... 74,000 1,549,375
BKF Capital Group Inc. ..................... 2,000 31,750
Pioneer Group Inc. (a) ..................... 90,000 3,813,750
-----------
5,394,875
Food, Beverages & Tobacco -- 4.09%
-----------------------------------------------------------------------
Buenos Aires Embotelladora
(ADR) (a) (d) ............................ 22,794 0
Corn Products International Inc. ........... 30,000 795,000
Eskimo Pie Corporation (a) ................. 14,000 138,250
Farmer Brothers Company .................... 800 140,000
Ingles Markets Inc. (Class A) .............. 80,000 835,000
International Home Foods Inc. (a) .......... 100,000 2,093,750
J & J Snack Foods Corporation (a) .......... 115,000 2,055,625
PepsiAmericas Inc. (a) ..................... 800,000 2,400,000
Ralcorp Holdings Inc. (a) .................. 110,000 1,347,500
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Robert Mondavi Corporation
(Class A) (a) ............................ 32,000 $ 982,000
Vermont Pure Holdings Ltd. (a) ............. 5,000 18,125
Weis Markets Inc. .......................... 20,000 655,000
Whitman Corporation ........................ 90,000 1,113,750
-----------
12,574,000
Hotels & Restaurants -- 2.14%
-----------------------------------------------------------------------
Advantica Restaurant Group Inc. (a) ........ 20,000 19,375
Aztar Corporation (a) ...................... 290,000 4,495,000
Boca Resorts Inc. (a) ...................... 45,000 444,375
Extended Stay America Inc. (a) ............. 25,000 231,250
Lakes Gaming Inc. (a) ...................... 55,000 488,125
Sun International Hotels Ltd. (a) .......... 33,500 670,000
Trump Hotels & Casino Resorts
Inc. (a) ................................. 80,000 225,000
-----------
6,573,125
Insurance -- 2.12%
-----------------------------------------------------------------------
Argonaut Group Inc. ........................ 100,000 1,712,500
Liberty Corporation ........................ 100,000 4,200,000
Midland Company ............................ 25,000 612,500
-----------
6,525,000
Machinery -- 4.02%
-----------------------------------------------------------------------
Baldwin Technology Company Inc.
(Class A) (a) ............................ 150,000 318,750
Fairchild Corporation (Class A) (a) ........ 120,000 585,000
Flowserve Corporation (a) .................. 166,000 2,500,375
Gardner Denver Inc. (a) .................... 50,000 893,750
Idex Corporation ........................... 50,000 1,578,125
Katy Industries Inc. ....................... 110,000 1,292,500
Nortek Inc. (a) ............................ 70,000 1,382,500
Paxar Corporation (a) ...................... 90,000 1,074,375
Standex International Corporation .......... 33,000 523,875
Tech/Ops Sevcon Inc. ....................... 30,000 262,500
Tennant Company ............................ 12,000 450,000
Watts Industries Inc. (Class A) ............ 120,000 1,515,000
-----------
12,376,750
Manufacturing -- 7.82%
-----------------------------------------------------------------------
Aviall Inc. (a) ............................ 160,000 790,000
Barnes Group Inc. .......................... 85,000 1,386,562
Belden Inc. ................................ 62,000 1,588,750
Bway Corporation (a) ....................... 22,000 145,750
Crane Company .............................. 42,000 1,021,125
Cuno Inc. (a) .............................. 48,000 1,110,000
Danaher Corporation ........................ 19,999 988,701
Dexter Corporation ......................... 90,000 4,320,000
Fedders Corporation (Class A) .............. 65,000 300,625
Gerber Scientific Inc. ..................... 35,000 402,500
Graco Inc. ................................. 22,000 715,000
Industrial Distribution Group Inc. (a) ..... 35,000 87,500
Lindsay Manufacturing Company .............. 4,000 78,500
MagneTek Inc. (a) .......................... 45,000 360,000
Mark IV Industries Inc. .................... 260,000 5,427,500
Material Sciences Corporation (a) .......... 100,000 1,000,000
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
14
<PAGE>
Enterprise Small Company Value Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Myers Industries Inc. .................. 135,000 $ 1,451,250
Oil Dri Corporation of America ......... 50,000 450,000
Park Ohio Holdings Corporation (a) ..... 145,000 1,250,626
Rawlings Sporting Goods Company
Inc. (a) ............................. 45,000 292,500
Strattec Security Corporation (a) ...... 20,000 650,000
Teleflex Inc. .......................... 7,000 259,438
-----------
24,076,327
Medical Instruments -- 1.34%
-------------------------------------------------------------------
Inamed Corporation ..................... 4,500 164,812
Steris Corporation ..................... 150,000 1,331,250
Wesley Jessen VisionCare Inc. (a) ...... 70,000 2,629,375
-----------
4,125,437
Medical Services -- 0.41%
-------------------------------------------------------------------
CIRCOR International Inc. .............. 153,000 1,252,688
Metals & Mining -- 0.29%
-------------------------------------------------------------------
TVX Gold Inc. (a) ...................... 610,000 381,250
WHX Corporation (a) .................... 95,000 522,500
-----------
903,750
Misc. Financial Services -- 0.23%
-------------------------------------------------------------------
Data Broadcasting Corporation (a) ...... 110,000 694,375
Neutraceuticals -- 0.41%
-------------------------------------------------------------------
Weider Nutrition International Inc. .... 420,000 1,260,000
Oil Services -- 2.45%
-------------------------------------------------------------------
EnergyNorth Inc. ....................... 25,000 1,481,250
Fall River Gas Company ................. 45,000 990,000
RPC Inc. ............................... 15,000 158,437
Vastar Resources Inc. .................. 60,000 4,927,500
-----------
7,557,187
Paper Products -- 0.70%
-------------------------------------------------------------------
Greif Brothers Corporation (Class A) ... 70,000 2,152,500
Pharmaceuticals -- 2.08%
-------------------------------------------------------------------
Agribrands International Inc. (a) ...... 8,000 335,500
Block Drug Company Inc. ................ 10,000 423,125
Carter-Wallace Inc. .................... 235,000 4,729,375
Ivax Corporation (a) ................... 5,000 207,500
Twinlab Corporation (a) ................ 110,000 701,250
-----------
6,396,750
Printing & Publishing -- 7.45%
-------------------------------------------------------------------
A.H. Belo Corporation (Class A) ........ 70,000 1,211,875
Central Newspapers Inc. ................ 50,000 3,162,500
Lee Enterprises Inc. ................... 80,000 1,865,000
McClatchy Company (Class A) ............ 55,000 1,821,875
Media General Inc. (Class A) ........... 135,000 6,555,937
Penton Media Inc. ...................... 110,000 3,850,000
Pulitzer Inc. .......................... 60,000 2,531,250
Thomas Nelson Inc. ..................... 110,000 941,875
Topps Company Inc. (a) ................. 85,000 977,500
-----------
22,917,812
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Property-Casualty Insurance -- 0.45%
-------------------------------------------------------------------
CNA Surety Corporation ................. 115,000 $ 1,372,813
Real Estate -- 1.65%
-------------------------------------------------------------------
Catellus Development Corporation (a) ... 210,000 3,150,000
Griffin Land & Nurseries Inc. (a) ...... 44,000 511,500
Gyrodyne Company of America Inc. (a) 13,000 227,500
Meditrust Corporation (a) .............. 320,000 1,200,000
-----------
5,089,000
Retail -- 1.03%
-------------------------------------------------------------------
Coldwater Creek Inc. (a) ............... 22,500 677,812
Lillian Vernon Corporation ............. 125,000 1,312,500
Neiman Marcus Group (a) ................ 35,000 971,250
Sports Authority Inc. (a) .............. 135,000 151,875
ValueVision International Inc.
(Class A) (a) ........................ 3,000 72,000
-----------
3,185,437
Security & Investigation Services -- 1.87%
-------------------------------------------------------------------
Burns International Services
Corporation (a) ...................... 145,000 1,812,500
Rollins Inc. ........................... 260,000 3,867,500
Wackenhut Corporation (Class A) (a) .... 5,000 64,687
-----------
5,744,687
Technology -- 0.43%
-------------------------------------------------------------------
Thomas & Betts Corporation ............. 70,000 1,338,750
Telecommunications -- 5.83%
-------------------------------------------------------------------
Atlantic Tele-Network Inc. ............. 12,000 113,250
Citizens Communications Company (a) 260,000 4,485,000
Commonwealth Telephone Enterprises
Inc. (a) ............................. 28,000 1,317,750
Communications Systems Inc. ............ 62,000 945,500
COMSAT Corporation ..................... 80,000 1,975,000
GST Telecommunications Inc. (a) ........ 45,000 42,891
Rogers Cantel Mobile Communications
Inc. (Class B) (a) ................... 33,500 1,126,437
Telephone and Data Systems Inc. ........ 75,000 7,518,750
Teligent Inc. (Class A) (a) ............ 10,000 236,250
Viatel Inc. (a) ........................ 6,500 185,656
-----------
17,946,484
Transportation -- 0.61%
-------------------------------------------------------------------
GATX Corporation ....................... 40,000 1,360,000
TransPro Inc. .......................... 100,000 506,250
-----------
1,866,250
Utilities -- 1.84%
-------------------------------------------------------------------
AGL Resources Inc. ..................... 55,000 876,562
Berkshire Energy Resources ............. 10,000 373,750
Eastern Enterprises .................... 60,000 3,780,000
Florida Public Utilities Company ....... 15,000 234,375
Southwest Gas Corporation .............. 22,000 385,000
-----------
5,649,687
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
15
<PAGE>
Enterprise Small Company Value Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Waste Management -- 0.02%
-------------------------------------------------------------------------
Envirosource Inc. (a) .................... 110,000 $ 51,563
Wireless Communications -- 3.94%
-------------------------------------------------------------------------
Allen Telecom Inc. (a) ................... 190,000 3,360,625
Leap Wireless International Inc. (a) ..... 19,000 893,000
Price Communications Corporation (a) 160,000 3,770,000
United States Cellular Corporation (a) ... 65,000 4,095,000
------------
12,118,625
------------
Total Common Stocks
(Identified cost $288,501,772).......................... 289,121,523
-------------------------------------------------------- ------------
Foreign Stocks -- 0.06%
-------------------------------------------------------------------------
Computer Software -- 0.06%
-------------------------------------------------------------------------
Global Sources Ltd ....................... 7,000 177,625
------------
Total Foreign Stocks
(Identified cost $192,120).............................. 177,625
-------------------------------------------------------- ------------
U.S. Treasury Bills -- 8.06%
-------------------------------------------------------------------------
5.62% due 07/06/00 ....................... $107,000 106,916
5.56% due 07/27/00 ....................... 2,089,000 2,080,612
5.52% due 08/10/00 ....................... 3,004,000 2,985,575
5.61% due 08/10/00 ....................... 14,170,000 14,081,674
5.645% due 08/24/00 ...................... 330,000 327,206
5.655% due 09/14/00 ...................... 5,279,000 5,216,807
------------
Total U.S. Treasury Bills
(Identified cost $24,798,790)........................... 24,798,790
-------------------------------------------------------- ------------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Repurchase Agreement -- 0.31%
-------------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement, 5.50% due 07/03/00,
Maturity Value $966,443 Collateral:
U.S. Treasury Note $950,000,
6.875% due 05/15/06 Value
$993,967 ............................... $ 966,000 $ 966,000
------------
Total Repurchase Agreement
(Identified cost $966,000)................................ 966,000
---------------------------------------------------------- ------------
Total Investments
(Identified cost $314,458,681)............................ $315,063,938
Other Assets Less Liabilities -- (2.37)% ................. (7,297,681)
------------
Net Assets -- 100% ....................................... $307,766,257
---------------------------------------------------------- ------------
</TABLE>
(a) Non-income producing security.
(d) Security is fair valued at June 30, 2000.
(f) Restricted securities as of June 30, 2000 were as follows:
<TABLE>
<CAPTION>
Aggregate
Date of Number of Fair Value ------------ Percent of
Description Acquisition Units Unit Cost per Unit Cost Value Net Assets
------------------------------------- ------------ ---------- ----------- ----------- -------- ------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Noel Group Units .................... 04/13/1999 15,000 $ 0.49 $ -- 7,320 -- 0.00%
Noel Group Liquidating Trust Units .. 10/08/1998 15,000 $ 0.81 $ 0.66 12,187 9,900 0.00%
</TABLE>
(ADR) American Depository Receipt.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
16
<PAGE>
Enterprise Growth Fund
SUBADVISER'S COMMENTS
Montag & Caldwell, Inc.
Atlanta, Georgia
Investment Management
Montag & Caldwell has served as subadviser to the Enterprise Growth Fund since
the fund was organized in 1968. Montag & Caldwell manages approximately $33
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 that 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 2000 Performance Review
The stock market as measured by the S&P 500 Index was negative for most of the
first quarter of 2000 until the brisk rally in March pushed the index into
modestly positive territory. The divergence in performance between technology
stocks and all other stocks continued to widen until the end of the quarter. The
100 largest companies on the Nasdaq gained nearly 19 percent during the quarter,
while the 439 non-tech stocks in the S&P 500 were on average down for the
quarter. During the first quarter of 2000, the strength of the Fund's technology
issues did not offset the weakness of other holdings. Because Montag believes
that many technology stocks have become too highly priced, the Fund has
maintained a more conservative position in technology relative to the market.
Stocks finished the second quarter lower as investors reacted negatively to the
prospects of higher interest rates and their impact on a fully valued market.
Concerns also surfaced about whether many developing technology and Internet
companies would ever post a profit, leading to a sell off in this overvalued
sector of the market. From its peak on March 10 to its low on May 24, the Nasdaq
declined over 35 percent and finished the quarter down 13 percent. The S&P 500
finished the quarter down 2.7 percent.
In this difficult environment, companies with good earnings and more
conservative valuations tended to do well. As evidence of this, two of the best
performing sectors of the S&P 500 were healthcare, up 22 percent, and consumer
staples, up 6 percent. Healthcare was the best performing sector of the S&P 500
for the second quarter. Among the Fund's holdings, Johnson & Johnson was the
standout, gaining 45 percent for the quarter, while Schering Plough and Pfizer
rose over 30 percent. In the consumer staple area, Bestfoods increased over 48
percent as it agreed to be acquired by Unilever, while Coca-Cola and PepsiCo
gained over 20 percent.
Future Investment Strategy
Because Montag & Caldwell expects continued economic growth with low inflation,
it believes the outlook for the stock market remains positive. The market, as
measured by the S&P 500, may continue to be volatile and move in a sideways
pattern until it becomes more evident that the Federal Reserve has succeeded at
engineering a soft landing.
THE ENTERPRISE Group of Funds, Inc.
17
<PAGE>
Enterprise Growth Fund -- (Continued)
SUBADVISER'S COMMENTS
However, as this develops, interest rates may peak and eventually drift lower,
with corporate profit growth being sustained, but at a more moderate rate. Such
an outcome may allow the market to broaden out with more stocks moving higher as
the stock market indices advance.
In a more moderately growing economy, Montag & Caldwell believes higher quality
issues that can produce solid double-digit earnings growth may excel. With
global economies recovering and the enormous longer-term opportunities deriving
from the triumph of capitalism, Montag & Caldwell believes multinational growth
companies may do particularly well. These include well-positioned consumer,
pharmaceutical, technology and financial service companies with global reach. As
it becomes more evident that the Federal Reserve is succeeding in bringing about
a soft landing, higher-quality consumer growth companies that conduct most of
their business in the United States may also be rewarding investments for the
Fund.
The views expressed in this report reflect those of the subadviser only through
the end of the period of the report as stated on the cover. The subadviser's
views are subject to change at any time based on market and other conditions.
[GRAPHIC OMITTED]
www.enterprisefunds.com
THE ENTERPRISE Group of Funds, Inc.
18
<PAGE>
Enterprise Growth Fund
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 96.84%
---------------------------------------------------------------------
Banking -- 2.47%
---------------------------------------------------------------------
Wells Fargo & Company ................ 1,528,500 $ 59,229,375
Business Services -- 1.63%
---------------------------------------------------------------------
Interpublic Group of Companies Inc. 908,800 39,078,400
Computer Hardware -- 7.33%
---------------------------------------------------------------------
Dell Computer Corporation (a) ........ 1,584,200 78,120,862
Hewlett-Packard Company .............. 780,800 97,502,400
--------------
175,623,262
Computer Services -- 6.56%
---------------------------------------------------------------------
Electronic Data Systems
Corporation ........................ 1,885,400 77,772,750
Solectron Corporation (a) ............ 1,892,600 79,252,625
--------------
157,025,375
Computer Software -- 4.50%
---------------------------------------------------------------------
Electronic Arts Inc. (a) ............. 600,000 43,762,500
Microsoft Corporation (a) ............ 800,000 64,000,000
--------------
107,762,500
Consumer Products -- 5.20%
---------------------------------------------------------------------
Gillette Company ..................... 2,650,000 92,584,375
Newell Rubbermaid Inc. ............... 1,243,500 32,020,125
--------------
124,604,500
Electrical Equipment -- 1.01%
---------------------------------------------------------------------
General Electric Company ............. 457,200 24,231,600
Food, Beverages & Tobacco -- 10.93%
---------------------------------------------------------------------
Bestfoods ............................ 1,200,000 83,100,000
Coca-Cola Company .................... 2,067,700 118,763,519
PepsiCo Inc. ......................... 1,349,600 59,972,850
--------------
261,836,369
Health Care -- 2.53%
---------------------------------------------------------------------
Medtronic Inc. ....................... 1,217,100 60,626,794
Hotels & Restaurants -- 5.55%
---------------------------------------------------------------------
Marriott International Inc.
(Class A) .......................... 1,400,000 50,487,500
McDonald's Corporation ............... 2,505,400 82,521,613
--------------
133,009,113
Medical Instruments -- 2.29%
---------------------------------------------------------------------
Boston Scientific Corporation (a) .... 2,500,000 54,843,750
Misc. Financial Services -- 4.15%
---------------------------------------------------------------------
American Express Company ............. 951,300 49,586,513
Citigroup Inc. ....................... 828,800 49,935,200
--------------
99,521,713
Multi-Line Insurance -- 2.46%
---------------------------------------------------------------------
American International Group Inc. .... 500,600 58,820,500
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Pharmaceuticals -- 17.24%
---------------------------------------------------------------------
Bristol-Myers Squibb Company ......... 1,426,100 $ 83,070,325
Johnson & Johnson .................... 1,008,000 102,690,000
Pfizer Inc. .......................... 3,000,000 144,000,000
Schering-Plough Corporation .......... 1,650,000 83,325,000
--------------
413,085,325
Retail -- 8.34%
---------------------------------------------------------------------
Circuit City Stores Inc. ............. 1,433,300 47,567,644
Costco Wholesale Corporation (a) ..... 1,529,700 50,480,100
Gap Inc. ............................. 698,900 21,840,625
Home Depot Inc. ...................... 1,601,000 79,949,937
--------------
199,838,306
Semiconductors -- 2.23%
---------------------------------------------------------------------
Intel Corporation .................... 400,000 53,475,000
Telecommunications -- 11.02%
---------------------------------------------------------------------
Lucent Technologies Inc. ............. 1,817,100 107,663,175
Tellabs Inc. (a) ..................... 1,000,000 68,437,500
Worldcom Inc. (a) .................... 1,914,700 87,836,862
--------------
263,937,537
Wireless Communications -- 1.40%
---------------------------------------------------------------------
Motorola Inc. ........................ 1,151,700 33,471,281
--------------
Total Common Stocks
(Identified cost $2,017,303,025).................... 2,320,020,700
---------------------------------------------------- --------------
Repurchase Agreement -- 3.25%
---------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement
5.50% due 07/03/00,
Maturity Value $77,945,709
Collateral: U.S. Treasury Bond
$67,635,000, 7.50% due
11/15/24,
Value $80,118,987 .................. $77,910,000 77,910,000
--------------
Total Repurchase Agreement
(Identified cost $77,910,000)....................... 77,910,000
---------------------------------------------------- --------------
Total Investments
(Identified cost $2,095,213,025).................... $2,397,930,700
Other Assets Less
Liabilities -- (0.09)% ............................. (2,096,810)
--------------
Net Assets -- 100% ................................. $2,395,833,890
---------------------------------------------------- --------------
</TABLE>
(a) Non-income producing security.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
19
<PAGE>
Enterprise Capital Appreciation Fund
SUBADVISER'S COMMENTS
Marsico Capital Management, LLC
Denver, Colorado
Investment Management
Marsico Capital Management, LLC became subadviser to the Enterprise Capital
Appreciation Fund on November 1, 1999. Marsico manages approximately $16 billion
for institutional clients and its usual investment minimum is $100 million.
Investment Objective
The objective of the Enterprise Capital Appreciation Fund is to seek maximum
capital appreciation.
Investment Strategies
The Capital Appreciation Fund's investment strategy blends top-down economic and
industry analysis with bottom-up stock selection. The subadviser's investment
approach emphasizes large capitalization U.S. companies that, in the
subadviser's opinion, have the ability to produce above-average earnings growth.
The investment process begins by establishing an overall macroeconomic outlook,
which in turn forms the strategic backdrop for actual portfolio construction.
Various economic, social, and political factors are considered, including global
trends (e.g., productivity enhancements), interest rates, inflation, central
bank policies, the regulatory environment, and the overall competitive
landscape. This analysis also seeks to uncover specific industries and companies
that are expected to benefit from the macroeconomic environment. The potential
for maximum capital appreciation is the basis for investment decisions; any
income is incidental.
Stock selection stresses rigorous hands-on fundamental internal research. The
primary focus is to identify companies with market expertise/dominance, durable
franchises, improving fundamentals (e.g., margins, Return on Equity, Return on
Assets), strong balance sheets, global distribution capabilities and management
teams. Valuation is also an important consideration in selecting stocks. Stocks
are sold for three primary reasons: overvaluation relative to expected earnings
growth potential, forced displacement (i.e., a better investment idea surfaces),
or a permanent change in industry/company fundamentals that alters the original
investment thesis.
First Half 2000 Performance Review
Because the equity markets have been so volatile this year, a variety of the
Fund's sector, industry, and individual company positions have moved in and
out-of-favor at various times this year. However, in reflecting on the past six
months, Marsico would point to the following areas that primarily impacted the
Fund's investment results:
o Technology-related positions: On balance, the Fund's technology allocation
this year has adversely affected performance, although there have been several
performance standouts in this sector. Early in 2000, the Fund was negatively
impacted by its positions in QUALCOMM, Lucent Technologies, and Dell Computer,
all of which have been sold. Cisco Systems, after producing strong gains in
the first quarter 2000, struggled in the second quarter. A similar pattern
took place with 3Com, which produced strong gains in the first quarter, but
sold off sharply in the second quarter. The aforementioned companies
represented substantial positions in the Fund. The Fund's positions in
technology-related companies such as EMC Corporation, Corning, and Oracle have
helped investment results year-to-date.
o Financial Services: Recently, the Fund's financial service positions have
performed quite well. Earlier in the year, holdings in Fannie Mae and
Citigroup detracted somewhat from investment results. Recently, Marsico
increased the Fund's position in financials, based largely on the premise that
going forward the interest rate environment may be more favorable.
o Health Care: Throughout the year, the Fund has been substantially
underweighted in the health care sector, including HMOs and pharmaceuticals.
This strategy, overall, has detracted from investment results. Health care was
among the best-performing sectors during the second quarter, outperforming the
broad U.S. equity market, as measured by the S&P 500 Index, by a wide margin.
In addition, the Fund's sole major health care position, Genentech, has been
under pressure for a good portion of 2000, particularly since March.
THE ENTERPRISE Group of Funds, Inc.
20
<PAGE>
Enterprise Capital Appreciation Fund -- (Continued)
SUBADVISER'S COMMENTS
o Retail: Retail stocks such as Home Depot and Wal-Mart Stores did not perform
particularly well during the first six months of 2000.
o Media/Entertainment: Companies such as Sony, Time Warner, and America Online
have fluctuated quite substantially in 2000, but overall have not contributed
positively to the Fund's performance so far this year.
Future Investment Strategy
Marsico continues to believe that the long-term prospects for U.S. equity
markets remain quite strong. Marsico's positive macroeconomic outlook is the
basis for this opinion. This outlook is anchored by a number of premises. In
Marsico's view, the U.S. is in a longer-term lower interest rate and
inflationary environment. While interest rates have no doubt been volatile and
generally biased higher, there is evidence that the Federal Reserve's tightening
policy has been successful at slowing U.S. economic growth. Inflation, despite
an increase in oil prices, has not increased dramatically; prices for raw
materials such as lumber and gypsum have either remained relatively stable or
declined somewhat. Neither automobile sales nor housing starts have shown
year-over-year growth in the past year.
At this time, based on this evidence, Marsico believes that future interest rate
increases by the Federal Reserve are unlikely. Therefore, Marsico's view is that
the interest rate environment may improve going forward. That in turn, augurs
well for company valuations and earnings. Marsico believes the continued high
Federal budget surpluses, which thus far have primarily been earmarked for
reducing government debt, are a positive factor. Finally, Marsico continues to
feel that productivity gains and enhanced communications have created a more
efficient economy and may help keep inflation relatively low.
The views expressed in this report reflect those of the subadviser only through
the end of the period of the report as stated on the cover. The subadviser's
views are subject to change at any time based on market and other conditions.
[GRAPHIC OMITTED]
www.enterprisefunds.com
THE ENTERPRISE Group of Funds, Inc.
21
<PAGE>
Enterprise Capital Appreciation Fund
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 93.66%
----------------------------------------------------------------------
Advertising -- 0.88%
----------------------------------------------------------------------
Omnicom Group Inc. ...................... 28,974 $ 2,580,497
Aerospace -- 1.46%
----------------------------------------------------------------------
General Dynamics Corporation ............ 74,196 3,876,741
Titan Corporation (a) ................... 8,792 393,442
-----------
4,270,183
Automotive -- 1.30%
----------------------------------------------------------------------
Delphi Automotive Systems
Corporation ........................... 51,401 748,527
Ford Motor Company ...................... 68,366 2,939,738
Visteon Corporation ..................... 8,951 108,535
-----------
3,796,800
Biotechnology -- 5.15%
----------------------------------------------------------------------
Genentech Inc. (a) ...................... 87,200 14,998,400
Broadcasting -- 4.20%
----------------------------------------------------------------------
Clear Channel Communications Inc.
(a) ................................... 56,207 4,215,525
Time Warner Inc. ........................ 105,577 8,023,852
-----------
12,239,377
Cable -- 1.97%
----------------------------------------------------------------------
Comcast Corporation (a) ................. 141,589 5,734,355
Computer Hardware -- 7.09%
----------------------------------------------------------------------
Cisco Systems Inc. (a) .................. 82,354 5,234,626
EMC Corporation (a) ..................... 200,370 15,415,967
-----------
20,650,593
Computer Services -- 4.75%
----------------------------------------------------------------------
America Online Inc. (a) ................. 114,885 6,060,184
Sun Microsystems Inc. (a) ............... 85,721 7,795,253
-----------
13,855,437
Computer Software -- 6.14%
----------------------------------------------------------------------
Adobe Systems Inc. ...................... 44,262 5,754,060
Oracle Corporation (a) .................. 138,129 11,611,469
Veritas Software Corporation (a) ........ 4,612 521,228
-----------
17,886,757
Consumer Products -- 1.00%
----------------------------------------------------------------------
Kimberly-Clark Corporation .............. 50,785 2,913,789
Consumer Services -- 0.32%
----------------------------------------------------------------------
United Parcel Service Inc. .............. 15,776 930,784
Crude & Petroleum -- 1.73%
----------------------------------------------------------------------
BP Amoco (ADR) .......................... 88,947 5,031,065
Electrical Equipment -- 3.28%
----------------------------------------------------------------------
Chartered Semiconductor
Manufacturing (ADR) (a) ............... 2,835 255,150
General Electric Company ................ 175,471 9,299,963
-----------
9,555,113
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Electronics -- 5.12%
----------------------------------------------------------------------
Applied Materials Inc. (a) .............. 88,238 $ 7,996,569
Flextronics International Ltd
(ADR) (a) ............................. 39,196 2,692,275
Sony Corporation (ADR) .................. 44,733 4,218,881
-----------
14,907,725
Energy -- 1.56%
----------------------------------------------------------------------
AES Corporation (a) ..................... 100,000 4,562,500
Finance -- 2.82%
----------------------------------------------------------------------
Morgan Stanley Dean Witter &
Company ............................... 98,567 8,205,703
Food, Beverages & Tobacco -- 3.07%
----------------------------------------------------------------------
Anheuser-Busch Companies, Inc. .......... 51,879 3,874,713
Coca-Cola Company ....................... 48,136 2,764,811
Coca-Cola Enterprises, Inc. ............. 65,360 1,066,185
Pepsi Bottling Group, Inc. .............. 42,897 1,252,056
-----------
8,957,765
Hotels & Restaurants -- 2.50%
----------------------------------------------------------------------
Four Seasons Hotels Inc. (ADR) .......... 117,162 7,286,012
Manufacturing -- 6.69%
----------------------------------------------------------------------
Corning Inc. ............................ 72,284 19,507,644
Misc. Financial Services -- 7.10%
----------------------------------------------------------------------
American Express Company ................ 23,637 1,232,079
Citigroup Inc. .......................... 172,174 10,373,483
Fannie Mae .............................. 173,884 9,074,571
-----------
20,680,133
Oil Services -- 2.45%
----------------------------------------------------------------------
Halliburton Company ..................... 41,204 1,944,314
Schlumberger Ltd. ....................... 69,702 5,201,512
-----------
7,145,826
Retail -- 8.60%
----------------------------------------------------------------------
Costco Wholesale Corporation (a) ........ 88,248 2,912,184
Home Depot Inc. ......................... 160,544 8,017,166
Tiffany & Company ....................... 71,200 4,806,000
Wal-Mart Stores Inc. .................... 161,742 9,320,383
-----------
25,055,733
Semiconductors -- 2.51%
----------------------------------------------------------------------
Texas Instruments Inc. .................. 106,469 7,313,089
Technology -- 1.27%
----------------------------------------------------------------------
Agilent Technologies Inc. (a) ........... 50,046 3,690,893
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
22
<PAGE>
Enterprise Capital Appreciation Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Telecommunications -- 5.80%
-----------------------------------------------------------------------
General Motors Corporation
(Class H)-Hughes Electronics
Corporation (a) ....................... 56,812 $ 4,985,253
LM Ericsson Telephone Company
(ADR) ................................. 129,560 2,591,200
McLeodUSA Inc. (a) ...................... 120,000 2,482,500
Nortel Networks Corporation ............. 80,707 5,508,253
SBC Communications Inc. ................. 31,244 1,351,303
------------
16,918,509
Wireless Communications -- 4.90%
-----------------------------------------------------------------------
Sprint PCS (a) .......................... 152,578 9,078,391
Vodafone Airtouch (ADR) ................. 125,562 5,202,975
------------
14,281,366
------------
Total Common Stocks
(Identified cost $230,715,474)...................... 272,956,048
---------------------------------------------------- ------------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Short-Term Government Securities -- 4.66%
-----------------------------------------------------------------------
Federal Home Loan Bank
Consolidated Discount Note,
6.48% due 07/03/00 .................... $13,600,000 $ 13,595,104
------------
Total Short-Term Government Securities
(Identified cost $13,595,104)....................... 13,595,104
---------------------------------------------------- ------------
Total Investments
(Identified cost $252,651,965)...................... $286,551,152
Other Assets Less Liabilities -- 1.68% ............. 4,897,207
------------
Net Assets -- 100% ................................. $291,448,359
---------------------------------------------------- ------------
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipt.
See notes to financial statements.
[GRAPHIC OMITTED]
www.enterprisefunds.com
THE ENTERPRISE Group of Funds, Inc.
23
<PAGE>
Enterprise Equity Fund
SUBADVISER'S COMMENTS
TCW Investment Management Company
Los Angeles, California
Investment Management
TCW Investment Management Company, a wholly owned subsidiary of TCW Group,
Inc., became subadviser to the Enterprise Equity Fund on November 1, 1999. TCW
Group, Inc. manages approximately $79 billion for institutional clients, and
its normal investment minimum is $100 million.
Investment Objective
The objective of the Enterprise Equity Fund is long-term capital appreciation.
Investment Strategies
Using a bottom-up investment approach, TCW invests in large- and
medium-capitalization companies that have a long record of successful operations
in their core business. Looking for companies with a dominant position in a
niche business (e.g. technology, production and distribution), TCW also
considers the financial quality of the company. Prime candidates have sound
financial fundamentals and management that is committed to shareholder
interests.
First Half 2000 Performance Review
The first half of 2000 was dominated by concerns about the pace of growth of the
U.S. economy and the Federal Reserve's actions to control it. Concerns and
perceptions about the health and growth of the economy dominated the "roller
coaster" market of the first half of 2000. Initial concerns about the Y2K bug
turned out to be "much ado about nothing." As the economy grew more rapidly than
the Federal Reserve's "maximum speed target," there were concerns that the
economy would overheat and that inflation would accelerate. With this, the
Federal Reserve raised the discount rate three more times; the first two were
increases of 0.25 percent and the third was 0.50 percent. On the heels of the
0.50 percent increase in May, economic data began to show that the economy was
indeed slowing. All of these perception shifts gave rise to the simplistic
notion that there is a "new" and an "old economy," with companies that are
driven by opposing factors. Meanwhile, the "real" game is being played out in
the "real world" by "real companies" with "real business model advantage."
Companies that can capitalize on the major secular changes and scale product or
process advantage are at the heart of the Fund. These types of companies tend to
be able to weather slow-downs and expansions real or perceived.
The year began with a great deal of volatility. Cash held in anticipation of Y2K
problems fueled this volatility. January results were negative. February, which
included a Federal Reserve discount rate hike, saw strong appreciation on both
an absolute and relative basis. March was a strong return month for the Fund. In
April, concerns about an overheated economy resulted in a brief shift in
leadership to commodity-oriented inflation beneficiary companies. In May, as
economic data demonstrated that the economy was indeed slowing down, the leading
dependable companies the Fund owns performed well. In June, as investors focused
on companies that possess the ability to generate strong earnings growth in the
face of an expected economic slow-down, the Fund benefited.
The Fund's best performance for the first half came from technology holdings.
The Fund has slightly overweighted technology names because TCW believes the
secular forces in place for technology continue to be very compelling.
Additionally, given the pace of change in technology-based businesses, companies
with true advantage can seize and control opportunities more rapidly than in
other areas of the economy. Technology names such as Applied Materials, Cisco
Systems, Intel, Maxim Integrated Products and Siebel Systems were among the
Fund's biggest contributors. Amgen, Medtronic and Pfizer advanced strongly in
the first half and the Fund continues to have a substantial interest in Health
Care franchise businesses.
Disappointments came from company-specific issues. Biogen declined on weaker
than expected revenue growth from its Avonex product. However, TCW believes
their future opportunities look bright. Lucent Technologies traded lower on
company guidance that revenue growth was slowing. However, the company is in a
strong position in the high-growth communications business where their broad
offerings give them a key advantage in a multiple protocol world. Microsoft, a
long-term holding, declined significantly on the announcement of the proposed,
forced break-up of the company. Presently Microsoft is pursuing an appeal and it
may be another year or so before the matter is resolved. Meanwhile, Microsoft is
introducing new products. Finally, Proctor and Gamble reported disruptions in
their restructuring efforts,
THE ENTERPRISE Group of Funds, Inc.
24
<PAGE>
Enterprise Equity Fund -- (Continued)
SUBADVISER'S COMMENTS
which resulted in lower earnings guidance and the resignation of the new CEO.
TCW is monitoring their progress closely and at this time TCW believes the stock
represents a good value.
Future Investment Strategy
TCW believes that the Federal Reserve's rate increases are close to their
conclusion. TCW has begun to see signs of a slowing in consumer spending,
unemployment levels have risen slightly and inflation generally is absent from
the economy. The effect of six interest rate increases over a twelve-month
period is apparently taking its toll. If the Federal Reserve's goal is to keep
the economy from overheating without slowing the economy to the point of
recession, it would appear that the Federal Reserve need not tighten any
further. If consumer spending does slow and overall economic growth slows down
but does not decline, TCW believes there is an excellent backdrop for equity
investment.
The last time the Federal Reserve engendered numerous coordinated rate increases
was in 1994. In the environment that succeeded these rate increases in 1995, the
economy did indeed slow down. As is typical when the Federal Reserve is finished
raising rates, growth companies outperform value companies. TCW believes this is
due to long-term growth companies' sensitivity to interest rates. Rising rates
erode their value faster than value companies whose returns are not predicated
on sustained growth. As the economy slowed in 1995, the sectors that performed
the best were healthcare, technology, consumer staples and financials. The Fund
presently has significant positions in each. The poorest performing sectors were
more economically sensitive and less differentiable. These were consumer
cyclicals, basic materials, energy and capital equipment. The Fund is
underweighted in these areas.
Dominant companies with defendable and scalable business model advantages
typically have pricing power and produce or distribute the products that are in
demand even through an economic slow-down. In any case, stock prices
historically are more sensitive to the level and trend of interest rates than
the earnings growth rates. As inflation remains benign and the economy slows,
interest rates should trend lower.
The views expressed in this report reflect those of the subadviser only through
the end of the period of the report as stated on the cover. The subadviser's
views are subject to change at any time based on market and other conditions.
[GRAPHIC OMITTED]
www.enterprisefunds.com
THE ENTERPRISE Group of Funds, Inc.
25
<PAGE>
Enterprise Equity Fund
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 85.89%
-------------------------------------------------------------------
Biotechnology -- 5.62%
-------------------------------------------------------------------
Amgen Inc. (a) ......................... 29,400 $ 2,065,350
Genentech Inc. (a) ..................... 6,600 1,135,200
-----------
3,200,550
Business Services -- 3.24%
-------------------------------------------------------------------
Paychex Inc. ........................... 43,950 1,845,900
Cable -- 1.48%
-------------------------------------------------------------------
Cox Communications Inc. (Class A) (a) 18,500 842,906
Communications -- 1.73%
-------------------------------------------------------------------
JDS Uniphase Corporation (a) ........... 8,200 982,975
Computer Hardware -- 9.70%
-------------------------------------------------------------------
Cisco Systems Inc. (a) ................. 35,100 2,231,044
Dell Computer Corporation (a) .......... 66,800 3,294,075
-----------
5,525,119
Computer Services -- 1.42%
-------------------------------------------------------------------
Pixar Inc. (a) ......................... 23,000 810,750
Computer Software -- 8.20%
-------------------------------------------------------------------
Microsoft Corporation (a) .............. 17,100 1,368,000
Siebel Systems Inc. (a) ................ 20,200 3,303,962
-----------
4,671,962
Consumer Products -- 2.01%
-------------------------------------------------------------------
Gillette Company ....................... 18,500 646,344
Procter & Gamble Company ............... 8,700 498,075
-----------
1,144,419
Electronics -- 3.25%
-------------------------------------------------------------------
Applied Materials Inc. (a) ............. 20,400 1,848,750
Finance -- 2.42%
-------------------------------------------------------------------
Providian Financial Corporation ........ 15,300 1,377,000
Health Care -- 2.22%
-------------------------------------------------------------------
Medtronic Inc. ......................... 25,400 1,265,238
Insurance -- 4.92%
-------------------------------------------------------------------
Progressive Corporation (Ohio) ......... 37,900 2,804,600
Medical Services -- 3.13%
-------------------------------------------------------------------
Biogen Inc. (a) ........................ 27,600 1,780,200
Misc. Financial Services -- 4.11%
-------------------------------------------------------------------
The Charles Schwab Corporation ......... 69,600 2,340,300
Multi-Line Insurance -- 2.15%
-------------------------------------------------------------------
American International Group Inc. ...... 10,400 1,222,000
Pharmaceuticals -- 4.46%
-------------------------------------------------------------------
Pfizer Inc. ............................ 52,950 2,541,600
Retail -- 8.70%
-------------------------------------------------------------------
Costco Wholesale Corporation (a) ....... 20,600 679,800
Home Depot Inc. ........................ 35,750 1,785,266
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Safeway Inc. (a) ....................... 19,100 $ 861,887
Wal-Mart Stores Inc. ................... 28,200 1,625,025
-----------
4,951,978
Semiconductors -- 8.31%
-------------------------------------------------------------------
Intel Corporation ...................... 16,300 2,179,106
Maxim Integrated Products Inc. (a) ..... 37,600 2,554,450
-----------
4,733,556
Telecommunications -- 1.79%
-------------------------------------------------------------------
Lucent Technologies Inc. ............... 17,200 1,019,100
Transportation -- 7.03%
-------------------------------------------------------------------
Kansas City Southern Industries Inc. ... 29,500 2,616,281
Southwest Airlines Company ............. 73,400 1,390,013
-----------
4,006,294
-----------
Total Common Stocks
(Identified cost $41,918,828)....................... 48,915,197
---------------------------------------------------- -----------
Commercial Paper -- 5.96%
-------------------------------------------------------------------
General Electric Capital Corporation
Discount Note, 6.70% due 07/07/00 $ 400,000 399,553
General Electric Capital Corporation
Discount Note, 6.61% due 07/14/00 500,000 498,807
United Parcel Service 6.41% due
07/05/00 ............................. 2,500,000 2,498,219
-----------
Total Commercial Paper
(Identified cost $3,396,579)........................ 3,396,579
---------------------------------------------------- -----------
Repurchase Agreement -- 4.67%
-------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 5.50% due
07/03/00, Maturity Value
$ 2,660,219
Collateral: U.S. Treasury Note
$2,740,000, 4.625% due 12/31/00
Value $2,716,369 ..................... 2,659,000 2,659,000
-----------
Total Repurchase Agreement
(Identified cost $2,659,000)........................ 2,659,000
---------------------------------------------------- -----------
Total Investments
(Identified cost $47,974,407)....................... $54,970,776
Other Assets Less Liabilities -- 3.48% ............. 1,981,972
-----------
Net Assets -- 100% ................................. $56,952,748
---------------------------------------------------- -----------
</TABLE>
(a) Non-income producing security.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
26
<PAGE>
Enterprise Growth and Income Fund
SUBADVISER'S COMMENTS
Retirement System Investors Inc.
New York, New York
Investment Management
Retirement System Investors Inc. ("RSI") has served as subadviser to the
Enterprise Growth and Income Fund since 1991. RSI manages approximately $1.1
billion 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 subadviser employs a
"value-oriented" strategy. This means that the subadviser attempts to identify
stocks of companies that have greater value than is recognized by the market.
The subadviser 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 subadviser also considers
current and projected dividend yields. The subadviser compares this information
to that of other companies in determining relative value and dividend potential.
First Half 2000 Performance Review
The economy and corporate earnings continued their strong growth patterns, while
inflation inched up a bit during the first half. However, some signs of a loss
in momentum in both the economy and earnings surfaced as the period ended.
The stock market showed little gain for the first six months. Volatility
increased and sharp declines in April and May, particularly in smaller
technology and Internet issues, affected earlier gains. Growth stocks
outperformed value stocks among the larger companies. Looking at market sectors,
healthcare, utilities, energy and technology provided the best performance
overall.
The Fund's biggest lift to performance came from large technology holdings such
as Nortel Networks, Corning, EMC and Dallas Semiconductor. Another factor
positively influencing the Fund's results was light exposure in the
underperforming sectors of consumer cyclicals, communication services, and
consumer staples. Lucent Technologies and Motorola were out-of-favor,
non-contributors, in which the Fund recently increased holdings. The Fund's
overall technology sector position is close to the market weightings. Helping
performance among larger holdings was Tyco International and long-lagging
Emerson Electric in the diversified industrial sector, and Safeway and Johnson &
Johnson in the stable growth area. Laggards included Alcoa and Ingersoll Rand in
the basic materials and capital goods sector, which the Fund may find
attractive, in the event of a soft landing and extended economic cycle.
Honeywell International also disappointed based on an indicated earnings growth
shortfall.
Future Investment Strategy
Entering the second half of 2000, it appears the economy is slowing down, profit
growth is easing and inflation is inching up. The key issue is whether the
Federal Reserves' tightening moves will control inflation and provide a soft or
hard landing for the economy. A soft landing may be positive for equities, as it
may increase the odds of a further
THE ENTERPRISE Group of Funds, Inc.
27
<PAGE>
Enterprise Growth and Income Fund -- (Continued)
SUBADVISER'S COMMENTS
extended period of reasonably good economic growth aided by high productivity.
Under both scenarios, earnings growth momentum may slow, more so under a hard
landing. RSI's assumption is that overall market price-to-earnings ("P/E")
ratios may have a downward tendency as long as inflationary pressures build. So,
while prospective gains appear more modest relative to the recent past, the
market may rally later in the year as monetary policy stabilizes.
RSI's investment strategy going forward may emphasize soft cyclicals, capital
goods/multi-industry, companies that benefit from higher productivity, expansion
in foreign markets and a soft landing in the U.S. RSI may also maintain large
holdings in defensive issues, which may be less affected by a slowing economy
and may offer attractive value. The Fund may remain relatively underweighted in
consumer industries and may continue to have close to a market position in the
larger technology companies. Overall, the Fund's investments may have better
than average future earnings growth, and could be priced at about a 10 percent
discount to the market's valuation.
The views expressed in this report reflect those of the subadviser only through
the end of the period of the report as stated on the cover. The subadviser's
views are subject to change at any time based on market and other conditions.
[GRAPHIC OMITTED]
www.enterprisefunds.com
THE ENTERPRISE Group of Funds, Inc.
28
<PAGE>
Enterprise Growth and Income Fund
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 89.53%
------------------------------------------------------------------
Aerospace -- 3.67%
------------------------------------------------------------------
Honeywell International Inc. .......... 119,475 $ 4,024,814
Lockheed Martin Corporation ........... 7,100 176,169
United Technologies Corporation ....... 68,800 4,050,600
-----------
8,251,583
Banking -- 1.15%
------------------------------------------------------------------
Bank of America Corporation ........... 5,884 253,012
Chase Manhattan Corporation ........... 50,353 2,319,385
-----------
2,572,397
Broadcasting -- 1.05%
------------------------------------------------------------------
Time Warner Inc. ...................... 30,950 2,352,200
Building & Construction -- 2.72%
------------------------------------------------------------------
Armstrong Holdings Inc. ............... 20,600 315,438
Martin Marietta Materials Inc. ........ 32,450 1,312,197
Southdown Inc. ........................ 77,622 4,482,670
-----------
6,110,305
Chemicals -- 0.74%
------------------------------------------------------------------
Du Pont (E. I.) de Nemours &
Company ............................. 5,650 247,188
Praxair Inc. .......................... 37,850 1,417,009
-----------
1,664,197
Communications -- 1.27%
------------------------------------------------------------------
PMC-Sierra Inc. (a) ................... 16,100 2,860,769
Computer Hardware -- 13.67%
------------------------------------------------------------------
Cisco Systems Inc. (a) ................ 24,400 1,550,925
Dallas Semiconductor Corporation ...... 206,310 8,407,132
EMC Corporation (a) ................... 186,400 14,341,150
Hewlett-Packard Company ............... 6,100 761,738
International Business Machines
Corporation ......................... 45,320 4,965,372
Xerox Corporation ..................... 33,400 693,050
-----------
30,719,367
Computer Services -- 1.44%
------------------------------------------------------------------
Comverse Technology Inc. (a) .......... 1,350 125,550
Safeguard Scientifics Inc. (a) ........ 82,500 2,645,156
Sun Microsystems Inc. (a) ............. 5,200 472,875
-----------
3,243,581
Computer Software -- 1.78%
------------------------------------------------------------------
BMC Software Inc. (a) ................. 80,075 2,921,486
Cadence Design Systems Inc. (a) ....... 37,100 755,913
Computer Associates International
Inc. ................................ 6,350 325,041
Opus360 Corporation (a) ............... 1,375 5,070
-----------
4,007,510
Consumer Products -- 1.76%
------------------------------------------------------------------
Kimberly-Clark Corporation ............ 68,750 3,944,531
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Consumer Services -- 0.08%
------------------------------------------------------------------
United Parcel Service Inc. ............ 3,160 $ 186,440
Containers/Packaging -- 0.76%
------------------------------------------------------------------
Smurfit - Stone Container
Corporation (a) ..................... 132,500 1,705,937
Crude & Petroleum -- 6.16%
------------------------------------------------------------------
BP Amoco (ADR) ........................ 43,520 2,461,600
Exxon Mobil Corporation ............... 73,763 5,790,395
Royal Dutch Petroleum Company
(ADR) ............................... 54,375 3,347,461
Texaco Inc. ........................... 42,300 2,252,475
-----------
13,851,931
Electrical Equipment -- 5.68%
------------------------------------------------------------------
Cypress Semiconductor
Corporation (a) ..................... 3,000 126,750
Emerson Electric Company .............. 190,400 11,495,400
General Electric Company .............. 21,600 1,144,800
-----------
12,766,950
Electronics -- 0.30%
------------------------------------------------------------------
Gemstar International Group Ltd. (a) 3,200 196,650
Integrated Device Technology (a) ...... 8,000 479,000
-----------
675,650
Food, Beverages & Tobacco -- 2.41%
------------------------------------------------------------------
Anheuser-Busch Companies, Inc. ........ 65,800 4,914,437
PepsiCo Inc. .......................... 950 42,216
Philip Morris Companies Inc. .......... 17,080 453,688
-----------
5,410,341
Machinery -- 2.43%
--------------------------------------------------------------------
Deere & Company ....................... 13,000 481,000
Ingersoll Rand Company ................ 86,300 3,473,575
Snap-On Inc. .......................... 56,400 1,501,650
-----------
5,456,225
Manufacturing -- 8.13%
------------------------------------------------------------------
Corning Inc. .......................... 54,200 14,627,225
Milacron Inc. ......................... 15,200 220,400
Tyco International Ltd. ............... 72,200 3,420,475
-----------
18,268,100
Metals & Mining -- 2.28%
------------------------------------------------------------------
Alcoa Inc. ............................ 167,500 4,857,500
Potash Corporation Saskatchewan
Inc. ................................ 5,000 275,937
-----------
5,133,437
Misc. Financial Services -- 1.94%
------------------------------------------------------------------
Citigroup Inc. ........................ 43,300 2,608,825
Fannie Mae ............................ 33,600 1,753,500
-----------
4,362,325
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
29
<PAGE>
Enterprise Growth and Income Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Multi-Line Insurance -- 1.02%
----------------------------------------------------------------------
American General Corporation ............ 1,100 $ 67,100
American International Group Inc. ....... 18,838 2,213,465
------------
2,280,565
Oil Services -- 0.55%
----------------------------------------------------------------------
Halliburton Company ..................... 9,100 429,406
Schlumberger Ltd. ....................... 10,800 805,950
------------
1,235,356
Paper & Forest Products -- 0.09%
----------------------------------------------------------------------
International Paper Company ............. 7,000 208,688
Pharmaceuticals -- 5.72%
----------------------------------------------------------------------
Bristol-Myers Squibb Company ............ 33,960 1,978,170
Elan Corporation (ADR) (a) .............. 62,950 3,049,141
Johnson & Johnson ....................... 49,200 5,012,250
Merck & Company Inc. .................... 23,810 1,824,441
Pfizer Inc. ............................. 20,562 986,976
------------
12,850,978
Printing & Publishing -- 1.28%
----------------------------------------------------------------------
Lexmark International Group Inc.
(Class A) (a) ......................... 2,700 181,575
McGraw-Hill Companies Inc. .............. 49,750 2,686,500
------------
2,868,075
Retail -- 5.48%
----------------------------------------------------------------------
CVS Corporation ......................... 52,750 2,110,000
Federated Department Stores Inc. (a) 21,200 715,500
Safeway Inc. (a) ........................ 130,900 5,906,863
Tiffany & Company ....................... 47,100 3,179,250
Wal-Mart Stores Inc. .................... 6,850 394,731
------------
12,306,344
Savings and Loan -- 0.46%
----------------------------------------------------------------------
Washington Mutual Inc. .................. 35,700 1,030,838
Semiconductors -- 2.86%
----------------------------------------------------------------------
Conexant Systems Inc. (a) ............... 1,500 72,938
Intel Corporation ....................... 23,400 3,128,287
Texas Instruments Inc. .................. 47,000 3,228,312
------------
6,429,537
Technology -- 0.08%
-----------------------------------------------------------------------
Agilent Technologies Inc. (a) ........... 2,326 171,543
Telecommunications -- 10.68%
-----------------------------------------------------------------------
Bell Atlantic Corporation ............... 27,700 1,407,506
GTE Corporation ......................... 7,700 479,325
Lucent Technologies Inc. ................ 63,516 3,763,323
Nortel Networks Corporation ............. 214,720 14,654,640
QUALCOMM Inc. (a) ....................... 430 25,800
SBC Communications Inc. ................. 48,200 2,084,650
Tellabs Inc. (a) ........................ 23,000 1,574,063
------------
23,989,307
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Transportation -- 1.13%
-------------------------------------------------------------------------
FedEx Corp. (a) ......................... 67,050 $ 2,547,900
Wireless Communications -- 0.76%
-------------------------------------------------------------------------
Motorola Inc. ........................... 58,450 1,698,703
Nokia Corporation (Class A) (ADR) 250 12,484
------------
1,711,187
------------
Total Common Stocks
(Identified cost $145,231,863)........... 201,174,094
----------------------------------------- ------------
Convertible Preferred Stocks -- 0.15%
----------------------------------------------------------------------
Misc. Financial Services -- 0.15%
----------------------------------------------------------------------
Kmart Financing (a) ..................... 9,400 342,513
------------
Total Convertible Preferred Stocks
(Identified cost $561,542)............... 342,513
----------------------------------------- ------------
Commercial Paper -- 10.52%
----------------------------------------------------------------------
Alabama Power Company
6.80% due 07/06/00 .................... $2,350,000 2,347,781
Consolidated Edison Company
6.95% due 07/03/00 .................... 1,000,000 999,614
Ford Motor Credit Company
6.78% due 07/06/00 .................... 6,300,000 6,294,067
General Motors Corporation
6.79% due 07/05/00 .................... 7,000,000 6,994,719
Pharmacia Corporation
6.95% due 07/05/00 .................... 7,000,000 6,994,594
------------
Total Commercial Paper
(Identified cost $23,630,775)............ 23,630,775
----------------------------------------- ------------
Call Options Written -- (0.02)%
----------------------------------------------------------------------
Corning Inc., expires July 2000,
$230 (a)............................... 10 (40,125)
------------
Total Call Options Written
(Premiums Received $(22,074))............ (40,125)
----------------------------------------- ------------
Total Investments, Net
(Identified cost $169,402,106)........... $225,107,257
Other Assets Less Liabilities -- (0.18)%. (400,315)
------------
Net Assets -- 100% ...................... $224,706,942
----------------------------------------- ------------
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipt.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
30
<PAGE>
Enterprise Equity Income Fund
SUBADVISER'S COMMENTS
1740 Advisers, Inc.
New York, New York
Investment Management
1740 Advisers has been subadviser to the Enterprise Equity Income Fund since
its inception. 1740 Advisers is a member of The MONY Group, Inc. (NYSE: MNY)
and manages approximately $1.3 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 2000 Performance Review
During the first half of the year, investors experienced two different markets,
both heavily influenced by the performance of "new economy" stocks --
technology, media, and telecommunications. Up until the middle of March these
big-cap growth names, which dominate the S&P 500 and Nasdaq indices, were market
favorites and went almost straight up, while everything else stagnated or
declined. Then in a matter of weeks everything reversed; technology-related
stocks suffered a severe decline while many other groups went up. Healthcare,
energy, financial and some cyclicals experienced strong rallies.
The performance of the Equity Income Fund mirrored this reversal. The Fund
cannot own most technology, media, and telecommunications stocks because these
stocks have little or no dividend yield, and it does not have substantial
holdings in healthcare and the other groups that rallied as tech declined. This
pattern will very likely continue as long as the technology, media, and
telecommunications stocks constitute such a substantial portion of the popular
averages. They are great companies with exciting products and very attractive
future prospects. The valuation usually affects these attributes, and from time
to time they become excessively valued and almost everything else is neglected.
The market then generally corrects the disparity.
Future Investment Strategy
The outlook therefore is not great, but neither is it all negative. Stocks may
be supported by still growing earnings and improved valuations for most
companies, but may be constrained by concern about the Federal Reserve and still
rich valuations for the biggest growth names. The economic slowdown, worldwide
central bank concern about inflation and the growing Federal budget surplus, may
provide strong support for the bond market and some help for stocks.
All in all the best outcome, and the one that the Federal Reserve would like,
would be for most stocks to mark time for awhile, and for some of the most
overvalued names to sell off a bit. If the market surges upward and investors
move right back into the same large-cap technology names, the Federal Reserve
may lean toward a tighter policy.
THE ENTERPRISE Group of Funds, Inc.
31
<PAGE>
Enterprise Equity Income Fund -- (Continued)
SUBADVISER'S COMMENTS
The major risk continues to lie in these high quality, well-known growth stocks
and in the big averages. The new economy is for real, and these stocks may have
very attractive futures, but this is more than reflected in their prices. This
valuation disparity has created opportunity in the rest of the market where many
good companies are selling at more reasonable prices. If there is another sell
off in the growth sector, the rest of the market may not be immune, but the
values and the fact that many of these stocks have already suffered major
declines may provide some cushion.
The slower economy and the uncertainties regarding the Federal Reserve indicate
a more defensive strategy. This means less in economy-sensitive sectors such as
basic materials and more in healthcare and consumer staples. If the Federal
Reserve is nearing the end of its tightening, then financial stocks, both banks
and insurance, may do well. Finally, the energy sector remains as a major
overweight, including integrated oils, oil service and drilling and natural gas.
Demand remains strong, earnings estimates are increasing and dividend yields
remain attractive.
The views expressed in this report reflect those of the subadviser only through
the end of the period of the report as stated on the cover. The subadviser's
views are subject to change at any time based on market and other conditions.
[GRAPHIC OMITTED]
www.enterprisefunds.com
THE ENTERPRISE Group of Funds, Inc.
32
<PAGE>
Enterprise Equity Income Fund
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 96.13%
---------------------------------------------------------------------
Aerospace -- 3.82%
---------------------------------------------------------------------
Honeywell International Inc. ............. 30,000 $ 1,010,625
Northrop Grumman Corporation ............. 30,000 1,987,500
United Technologies Corporation .......... 40,000 2,355,000
-----------
5,353,125
Automotive -- 1.73%
---------------------------------------------------------------------
Ford Motor Company ....................... 35,000 1,505,000
General Motors Corporation ............... 15,000 870,937
Visteon Corporation ...................... 4,583 55,565
-----------
2,431,502
Banking -- 5.29%
---------------------------------------------------------------------
Bank of America Corporation .............. 25,000 1,075,000
Bank of New York Company Inc. ............ 35,000 1,627,500
Chase Manhattan Corporation .............. 34,500 1,589,156
FleetBoston Financial Corporation ........ 25,000 850,000
Mellon Financial Corporation ............. 20,000 728,750
Wells Fargo & Company .................... 40,000 1,550,000
-----------
7,420,406
Chemicals -- 1.53%
---------------------------------------------------------------------
Dow Chemical Company ..................... 35,000 1,056,563
Du Pont (E. I.) de Nemours &
Company ................................ 25,000 1,093,750
-----------
2,150,313
Computer Hardware -- 1.04%
---------------------------------------------------------------------
Xerox Corporation ........................ 70,000 1,452,500
Conglomerates -- 2.14%
---------------------------------------------------------------------
Minnesota Mining & Manufacturing
Company ................................ 20,000 1,650,000
Textron Inc. ............................. 25,000 1,357,813
-----------
3,007,813
Consumer Non-Durables -- 1.90%
---------------------------------------------------------------------
Avon Products Inc. ....................... 60,000 2,670,000
Consumer Products -- 2.37%
---------------------------------------------------------------------
Colgate-Palmolive Company ................ 20,000 1,197,500
Kimberly-Clark Corporation ............... 25,000 1,434,375
Procter & Gamble Company ................. 12,000 687,000
-----------
3,318,875
Crude & Petroleum -- 9.35%
---------------------------------------------------------------------
BP Amoco (ADR) ........................... 55,000 3,110,938
Burlington Resources Inc. ................ 35,000 1,338,750
Chevron Corporation ...................... 20,000 1,696,250
Exxon Mobil Corporation .................. 45,000 3,532,500
Royal Dutch Petroleum Company
(ADR) .................................. 30,000 1,846,875
Texaco Inc. .............................. 30,000 1,597,500
-----------
13,122,813
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Electrical Equipment -- 5.26%
-----------------------------------------------------------------------
Emerson Electric Company ................. 30,000 $ 1,811,250
General Electric Company ................. 105,000 5,565,000
-----------
7,376,250
Energy -- 6.61%
---------------------------------------------------------------------
Duke Energy Corporation .................. 35,000 1,973,125
El Paso Energy Corporation ............... 50,000 2,546,875
Enron Corporation ........................ 35,000 2,257,500
Williams Companies Inc. .................. 60,000 2,501,250
-----------
9,278,750
Food, Beverages & Tobacco -- 0.93%
---------------------------------------------------------------------
Coca-Cola Company ........................ 11,000 631,813
PepsiCo Inc. ............................. 15,000 666,562
-----------
1,298,375
Insurance -- 1.07%
---------------------------------------------------------------------
Cigna Corporation ........................ 16,000 1,496,000
Machinery -- 2.69%
---------------------------------------------------------------------
Caterpillar Inc. ......................... 38,000 1,287,250
Deere & Company .......................... 40,000 1,480,000
Pitney Bowes Inc. ........................ 25,000 1,000,000
-----------
3,767,250
Manufacturing -- 0.95%
---------------------------------------------------------------------
Eaton Corporation ........................ 20,000 1,340,000
Metals & Mining -- 1.24%
---------------------------------------------------------------------
Alcoa Inc. ............................... 60,000 1,740,000
Misc. Financial Services -- 1.93%
---------------------------------------------------------------------
Citigroup Inc. ........................... 45,000 2,711,250
Multi-Line Insurance -- 0.39%
---------------------------------------------------------------------
Lincoln National Corporation ............. 15,000 541,875
Oil Services -- 8.91%
---------------------------------------------------------------------
Baker Hughes Inc. ........................ 50,000 1,600,000
Diamond Offshore Drilling Inc. ........... 45,000 1,580,625
Halliburton Company ...................... 35,000 1,651,562
Kerr-McGee Corporation ................... 25,000 1,473,438
KeySpan Corporation ...................... 45,000 1,383,750
Phillips Petroleum Company ............... 30,000 1,520,625
Schlumberger Ltd. ........................ 20,000 1,492,500
Tidewater Inc. ........................... 50,000 1,800,000
-----------
12,502,500
Paper & Forest Products -- 2.70%
---------------------------------------------------------------------
Bowater Inc. ............................. 30,000 1,323,750
Georgia-Pacific Group .................... 35,000 918,750
International Paper Company .............. 45,000 1,341,563
Temple-Inland Inc. ....................... 5,000 210,000
-----------
3,794,063
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
33
<PAGE>
Enterprise Equity Income Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Pharmaceuticals -- 18.99%
----------------------------------------------------------------------
Abbott Laboratories ...................... 45,000 $ 2,005,312
American Home Products Corporation 45,000 2,643,750
Baxter International Inc. ................ 30,000 2,109,375
Bristol-Myers Squibb Company ............. 40,000 2,330,000
Eli Lilly & Company ...................... 30,000 2,996,250
Johnson & Johnson ........................ 30,000 3,056,250
Merck & Company Inc. ..................... 37,000 2,835,125
Pfizer Inc. .............................. 60,000 2,880,000
Pharmacia Corporation .................... 40,000 2,067,500
Schering-Plough Corporation .............. 35,000 1,767,500
Smithkline Beecham (ADR) ................. 30,000 1,955,625
------------
26,646,687
Printing & Publishing -- 0.77%
----------------------------------------------------------------------
McGraw-Hill Companies Inc. ............... 20,000 1,080,000
Property-Casualty Insurance -- 0.66%
----------------------------------------------------------------------
Chubb Corporation ........................ 15,000 922,500
Raw Materials -- 0.77%
----------------------------------------------------------------------
Weyerhaeuser Company ..................... 25,000 1,075,000
Real Estate -- 3.16%
----------------------------------------------------------------------
Boston Properties Inc. ................... 30,000 1,158,750
Crescent Real Estate Equities Company 50,000 1,025,000
Equity Office Properties Trust ........... 40,000 1,102,500
Equity Residential Properties Trust ...... 25,000 1,150,000
------------
4,436,250
Telecommunications -- 9.93%
----------------------------------------------------------------------
AT&T Corporation ......................... 35,000 1,106,875
Bell Atlantic Corporation ................ 45,000 2,286,562
BellSouth Corporation .................... 50,000 2,131,250
GTE Corporation .......................... 33,000 2,054,250
SBC Communications Inc. .................. 50,000 2,162,500
Sprint Corporation ....................... 35,000 1,785,000
U.S. West Inc. ........................... 28,000 2,401,000
------------
13,927,437
------------
Total Common Stocks
(Identified cost $114,712,076)............ 134,861,534
------------------------------------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Commercial Paper -- 3.45%
----------------------------------------------------------------------
Delphi Auto Systems
6.95% due 07/07/00 ..................... $800,000 $ 799,073
Nabisco Inc.
6.77% due 07/13/00 ..................... 2,726,000 2,719,848
Textron Financial Corporation
6.55% due 07/27/00 ..................... 1,335,00 1,328,685
------------
Total Commercial Paper
(Identified cost $4,847,606).............. 4,847,606
------------------------------------------ ------------
Total Investments
(Identified cost $119,559,683)............. $139,709,140
Other Assets Less Liabilities -- 0.42% .... 588,394
------------
Net Assets -- 100% ........................ $140,297,534
------------------------------------------- ------------
</TABLE>
(ADR) American Depository Receipt.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
34
<PAGE>
Enterprise International Growth Fund
SUBADVISER'S COMMENTS
Vontobel USA Inc.
New York, New York
Investment Management
Vontobel USA became the subadviser on April 1, 1999. Vontobel 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 subadviser believes are undervalued. The subadviser uses an approach
that involves bottom-up stock selection. The subadviser looks for companies that
are good, predictable businesses selling at attractive prices relative to an
estimate of intrinsic value. The subadviser diversifies investments among
European, Australian and Far East ("EAFE") markets.
First Half 2000 Performance Review
After outperforming EAFE in 1999, the Fund has given back some of the excess
returns during the first half of 2000. U.S. interest rate fears and continued
selling pressure on technology, media and telecommunications companies
contributed to the Fund's underperformance. Market events are mostly driven by
large capital flows, and it was no different during the first half as world
markets redefined value by selling off last year's high-priced technology, media
and telecommunications issues. Not surprisingly, Japan, which was last year's
best-performing market, was the worst-performer year-to-date, down 14 percent.
As bottom-up investors, Vontobel generally avoids making frequent changes from a
country or sector standpoint. This year, though, the Fund faced a high valuation
risk that exceeded Vontobel's margin of safety. At year-end 1999, due to strong
returns, the Fund was valued at a P/E ratio of 40 and an earnings-per-share
("EPS") growth rate of 26 percent. Vontobel reduced the Fund's technology, media
and telecommunications weighting by approximately 14 percent in the first
quarter and another 10 percent in the second quarter. The Fund maintains more
than 24 percent in technology, media and telecommunications firms whose growth
prospects and market leadership, Vontobel believes, justify their lofty
valuations. The sector rebalancing did not reduce the growth profile of the
Fund. At June 30, the Fund had a P/E ratio of 24 and an EPS growth rate of 22
percent.
Future Investment Strategy
Day-to-day sentiment changes but Vontobel's investment process stays the same.
Vontobel invests the Fund in firms with defensible franchises that show
potential growth at much more reliable rates than their competitors, and
Vontobel invests with a five-year time horizon. The environment for bottom-up
investors is very challenging but highly attractive candidates have not been
lacking in the Fund's investable universe. This year the Fund added close to 25
new stocks that Vontobel has been following over the last three to five years.
These companies have strong franchises and have continued to generate better
than 15 percent growth in cash flow and earnings. While repositioning the Fund's
holdings has not yet benefited returns, Vontobel believes the fundamentals in
international markets remain very attractive.
THE ENTERPRISE Group of Funds, Inc.
35
<PAGE>
Enterprise International Growth Fund -- (Continued)
SUBADVISER'S COMMENTS
Returns on capital ("ROC") and returns on equity ("ROE") of companies in Europe,
and even more so in Japan, seem to be reversing their negative trends. Taking
into account their ongoing restructuring and the enhanced use of corporate
balance sheets, which for the most part are much stronger than those of their
U.S. counterparts, Vontobel believes the Fund's holdings may have great
potential for improved profitability, as expressed in higher ROE's and ROC's.
The Fund remains defensively positioned against the MSCI EAFE benchmark in terms
of sector allocation and individual stock picks.
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 subadviser only through
the end of the period of the report as stated on the cover. The subadviser's
views are subject to change at any time based on market and other conditions.
Industry classifications for the Fund as a percentage of total market value at
June 30, 2000 are as follows (Unaudited):
<TABLE>
<CAPTION>
Industry
<S> <C>
Aerospace & Military Technology 1.28%
Appliances & Household Durables 2.54%
Automobiles 1.08%
Banking 7.56%
Beverages & Tobacco 1.32%
Broadcasting & Publishing 4.79%
Building Materials & Components 1.96%
Business & Public Service 10.29%
Chemicals 0.93%
Data Processing & Reproduction 4.51%
Electrical & Electronics 3.00%
Electronic Components, Instruments 7.99%
Energy Sources 4.04%
Financial Services 7.51%
</TABLE>
<TABLE>
<CAPTION>
Food & Household Products 3.00%
<S> <C>
Health & Personal Care 10.00%
Industrial Components 0.94%
Insurance 7.74%
Machinery & Engineering 1.32%
Merchandising 1.39%
Misc. Materials & Commodities 0.88%
Multi-Industry 1.43%
Real Estate 1.85%
Recreation, Other Consumer Goods 1.65%
Telecommunications 7.08%
Textiles & Apparels 1.00%
Cash/Other 2.92%
------
Total 100.00%
======
</TABLE>
[GRAPHIC OMITTED]
www.enterprisefunds.com
THE ENTERPRISE Group of Funds, Inc.
36
<PAGE>
Enterprise International Growth Fund
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 94.85%
------------------------------------------------------------------
Australia -- 3.08%
------------------------------------------------------------------
Computershare Ltd. .................... 86,500 $ 444,372
Macquarie Bank Ltd. ................... 42,200 658,200
Powerlan Ltd. ......................... 516,800 539,640
Westfield Holdings .................... 155,700 1,069,255
Woodside Petroleum .................... 107,200 833,443
-----------
3,544,910
Denmark -- 0.95%
------------------------------------------------------------------
Novo Nordisk (Class B) ................ 6,400 1,089,090
Finland -- 2.57%
--------------------------------------------------------------------
Nokia Corporation (Class A) (ADR) ..... 44,800 2,237,200
Perlos Corp ........................... 22,700 717,333
-----------
2,954,533
France -- 10.25%
------------------------------------------------------------------
Altran Technologies ................... 7,500 1,468,568
Atos .................................. 9,000 842,046
Axa ................................... 9,000 1,417,730
Cap Gemini ............................ 2,598 457,618
Carrefour ............................. 14,000 956,992
CGIP .................................. 20,020 852,444
Dassault Systemes ..................... 10,000 932,742
L'Oreal ............................... 1,000 865,913
Publicis .............................. 1,900 745,526
Sidel ................................. 6,200 502,831
Societe Generale ...................... 10,000 601,461
STMicroelectronics .................... 11,100 699,414
Total Fina (Class B) .................. 9,500 1,456,586
-----------
11,799,871
Germany -- 2.83%
------------------------------------------------------------------
Allianz ............................... 3,900 1,401,090
Bayerische Motoren Werke .............. 22,000 664,758
Muenchener Rueckvers .................. 3,800 1,193,566
-----------
3,259,414
Hong Kong -- 1.75%
------------------------------------------------------------------
Dah Sing Financial Group .............. 124,000 499,468
Hutchison Whampoa ..................... 62,700 788,224
SmarTone Telecommunications
Holdings Ltd. ....................... 103,000 227,920
Sun Hung Kai Properties Ltd. .......... 70,000 502,854
-----------
2,018,466
Ireland -- 1.93%
------------------------------------------------------------------
Allied Irish Banks .................... 57,800 517,604
CRH ................................... 21,400 387,160
Elan Corporation (ADR) (a) ............ 27,200 1,317,500
-----------
2,222,264
Italy -- 3.83%
------------------------------------------------------------------
ENI ................................... 139,300 804,588
Parmalat Finanz ....................... 375,800 530,272
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Pininfarina ........................... 34,000 $ 573,240
Pirelli ............................... 410,000 1,078,382
Telecom Italia ........................ 42,000 577,403
TIM ................................... 83,000 847,869
-----------
4,411,754
Japan -- 20.03%
------------------------------------------------------------------
Asatsu-DK Inc. ........................ 14,000 573,960
Benesse Corp .......................... 9,000 623,439
Fuji Photo Film Company ............... 8,000 327,223
Fujitsu Ltd. .......................... 51,000 1,764,007
Fujitsu Support & Service Inc. ........ 3,200 316,667
Hikari Tsushin Inc. ................... 1,000 40,997
Hoya Corporation ...................... 9,000 805,806
Mikuni Coca-Cola Bottling
Company Ltd. ........................ 17,000 246,577
Murata Manufacturing Company Ltd....... 10,000 1,434,428
Nichiei Company Ltd. .................. 13,500 221,384
Nintendo Company Ltd. ................. 9,000 1,570,897
Nippon Telegraph & Telephone
Corporation ......................... 5 66,444
Nippon TV Network ..................... 1,600 1,040,479
NTT Mobile Communication Network
Inc. ................................ 58 1,568,823
Rohm Company Ltd. ..................... 7,000 2,045,144
Ryohin Keikaku Company Ltd. ........... 9,000 1,145,092
Secom Company Ltd. .................... 12,000 876,490
Seven Eleven Japan .................... 8,000 668,772
Shin-Etsu Chemical Company Ltd. ....... 21,000 1,064,794
Shohkoh Fund .......................... 4,300 968,569
Sony Corporation ...................... 10,500 979,690
Takeda Chemical Industries ............ 28,000 1,836,671
Tokyo Broadcasting System Inc. ........ 31,000 1,338,109
Tokyo Electron Ltd. ................... 8,000 1,094,765
Yasuda Fire & Marine Insurance
Company Ltd. ........................ 81,000 426,738
-----------
23,045,965
Malaysia -- 0.03%
------------------------------------------------------------------
Malayan Banking Berhad ................ 7,000 28,368
Netherlands -- 6.88%
------------------------------------------------------------------
Aegon ................................. 36,582 1,301,649
Aegon (ADR) ........................... 11,138 396,791
ASM Lithography Holdings .............. 34,500 1,482,831
Getronics ............................. 40,000 616,737
Heineken .............................. 20,900 1,272,019
Philips Electronics ................... 40,968 1,932,141
Unilever .............................. 19,900 912,880
-----------
7,915,048
Norway -- 1.57%
------------------------------------------------------------------
Nycomed Amersham ...................... 82,800 800,932
Tomra Systems ......................... 38,100 1,010,169
-----------
1,811,101
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
37
<PAGE>
Enterprise International Growth Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Singapore -- 2.17%
---------------------------------------------------------------------
Datacraft Asia Ltd. ..................... 82,120 $ 722,656
DBS Group Holdings ...................... 62,000 796,989
Singapore Press Holdings Ltd. ........... 62,388 975,377
------------
2,495,022
Spain -- 0.95%
---------------------------------------------------------------------
Banco Santander Central Hispano ......... 53,000 559,120
Telefonica .............................. 25,000 537,019
------------
1,096,139
Sweden -- 7.32%
---------------------------------------------------------------------
Assa Abloy (Class B) .................... 92,850 1,863,316
Investor (Class B) ...................... 33,200 453,583
LM Ericsson Telephone Company
(Class B) ............................. 84,400 1,669,819
Modern Time Group (Class B) (a) ......... 13,700 652,381
Nordbanken Holdings ..................... 202,300 1,525,278
Securitas (Class B) ..................... 40,400 856,553
Skandia Forsakrings ..................... 53,000 1,400,113
------------
8,421,043
Switzerland -- 9.32%
---------------------------------------------------------------------
Credit Suisse Group ..................... 11,500 2,287,593
Givaudan ................................ 340 103,482
Nestle .................................. 610 1,220,897
Pharma Vision 2000 (a) .................. 500 334,089
PSP Swiss Property ...................... 6,000 551,707
Rieter Holdings ......................... 3,000 1,011,463
Roche Holdings .......................... 65 687,535
Roche Holdings Genusschein .............. 250 2,433,642
Schweizerische Rueckversicherungs-
Gesellschaft .......................... 640 1,304,481
Zurich Allied ........................... 1,600 790,535
------------
10,725,424
United Kingdom -- 19.39%
---------------------------------------------------------------------
3I Group ................................ 52,000 1,069,277
Abbey National .......................... 55,000 657,442
Amvescap ................................ 100,000 1,603,886
Astrazeneca ............................. 28,000 1,307,015
BP Amoco (ADR) .......................... 14,600 825,813
Capita Group ............................ 76,300 1,866,818
Compass Group ........................... 141,000 1,857,186
Dixons Group ............................ 158,143 643,679
Glaxo Wellcome .......................... 39,300 1,145,887
Hays .................................... 103,200 575,420
HSBC Holdings ........................... 90,100 1,029,975
Invensys ................................ 235,900 885,212
Lasmo ................................... 340,000 722,808
Logica .................................. 34,000 804,606
Misys ................................... 59,800 504,897
Provident Financial ..................... 38,400 403,816
Prudential Corporation .................. 83,000 1,215,685
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Royal Bank Scot Group ................... 50,000 $ 836,744
Vodafone AirTouch ....................... 500,219 2,020,871
WPP Group ............................... 160,000 2,336,226
------------
22,313,263
------------
Total Common Stocks
(Identified cost $97,412,864)............ 109,151,675
----------------------------------------- ------------
Preferred Stocks -- 1.36%
---------------------------------------------------------------------
Germany -- 1.36%
---------------------------------------------------------------------
Prosieben Media ......................... 6,000 746,099
SAP ..................................... 4,400 811,266
------------
1,557,365
------------
Total Preferred Stocks
(Identified cost $1,558,909)............. 1,557,365
----------------------------------------- ------------
Warrants -- 0.24%
---------------------------------------------------------------------
Switzerland -- 0.24%
---------------------------------------------------------------------
Zuercher Kantonalbank Call
Warrant (a) (e) ....................... 425,000 276,160
------------
Total Warrants
(Identified cost $272,686)................ 276,160
------------------------------------------ ------------
Repurchase Agreements -- 2.35%
---------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 5.50%
due 07/03/00,
Maturity Value $2,707,240
Collateral: U.S. Treasury Bond
$3,040,000, 5.25% due 02/15/29,
Value $2,822,669....................... $2,706,000 2,706,000
------------
Total Repurchase Agreements
(Identified cost $2,706,000)............. 2,706,000
----------------------------------------- ------------
Total Investments
(Identified cost $101,950,460)............ $113,691,200
Other Assets Less Liabilities -- 1.20% ... 1,385,560
------------
Net Assets -- 100% ....................... $115,076,760
------------------------------------------ ------------
</TABLE>
(a) Non-income producing security.
(e) The warrants entitle the fund to purchase 1 share of Credit Suisse Group
for every 40 warrants held and 290 CHF until September 15, 2000.
(ADR) American Depository Receipt.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
38
<PAGE>
Enterprise Internet Fund
SUBADVISER'S COMMENTS
Fred Alger Management, Inc.
New York, New York
Investment Management
Fred Alger Management, Inc., which has approximately $21 billion in assets
under management, became the subadviser to the Fund on July 1, 1999. Alger's
normal investment minimum is $5 million.
Investment Objective
The investment objective of the Enterprise Internet Fund is to seek long-term
capital appreciation.
Investment Strategies
Under normal conditions, the Internet Fund will invest at least 65 percent of
its assets in the equity securities of companies in the Internet, Intranet and
"high tech" sectors. In choosing which companies' stock the Fund should
purchase, the subadviser invests in those companies listed on a U.S. securities
exchange or Nasdaq which are engaged in the research, design, development or
manufacturing, or engaged to a significant extent in the business of
distributing products, processes or services for use with Internet or Intranet
related businesses. The Fund may also invest in other "high tech" companies. The
Internet is a worldwide network of computers designed to permit users to share
information and transfer data quickly and easily. The World Wide Web ("WWW"),
which is a means of graphically interfacing with the Internet, is a hypertext
based publishing medium containing text, graphics, interactive feedback
mechanisms and links within WWW documents and to other WWW documents. An
Intranet is the application of WWW tools and concepts to a company's internal
documents and databases. Other "high tech" companies may include firms in the
computer, communication, video, electronic, office and factory automation and
robotic sectors.
First Half 2000 Performance Review
The stock market experienced an extremely volatile start in 2000. Following an
enormously strong fourth quarter of 1999 and an uneventful Y2K, the market
seemed poised to continue its rally during the traditionally bullish month of
January. However, stocks struggled during January, as profit-taking and interest
rate fears weighed on most equity indices. Soaring fuel prices contributed
heavily to inflation fears as oil neared $30 per barrel. Also, third and fourth
quarter GDP numbers represented the strongest two-quarter GDP growth in more
than a decade. Against this background of higher commodity prices and
unrelenting economic expansion, the Federal Reserve raised both the Fed Funds
rate and the discount rate 0.25 percent on February 2nd. Two days before the Fed
meeting, the S&P 500 Index ended January with a negative 5.00 percent return.
February was a slightly better month for equity markets. While the S&P 500 and
the Dow Jones Industrial Average continued to flounder, technology and growth
stocks regained the momentum they had previously lost. The Nasdaq Composite and
Russell 2000 pushed strongly higher, led by many of the same companies that had
driven the market towards the end of 1999. Biotechnology stocks posted
especially strong gains. The re-emergence of growth stocks, combined with the
continued struggles of most value stocks, brought increased public attention to
the ongoing bifurcated nature of the market.
While the media was shining a spotlight on "new economy" stocks, March rolled
around and the market quickly changed its pace. Many technology-oriented, new
economy growth stocks corrected severely during March, driven down by valuation
concerns and sector rotations. Money flowed out of technology stocks and into
so-called "old economy" stocks, including financials, pharmaceuticals and
retailers. Many of the trading days during March saw the Dow moving strongly in
one direction and the Nasdaq moving decisively in the other, with each index
taking turns in the lead. However, a reversal of fortunes was clearly the
general trend, with the Dow advancing while the Nasdaq was retreating. As March
neared its close, the market continued to struggle with the conflict between the
THE ENTERPRISE Group of Funds, Inc.
39
<PAGE>
Enterprise Internet Fund -- (Continued)
SUBADVISER'S COMMENTS
new economy and the old economy. The Federal Reserve also bumped interest rates
by another 0.25 percent on March 21st, adding to interest rate fears.
Alarmingly, on April 4th, the Nasdaq fell in excess of 500 points to an
intra-day low of 3,649. Despite staging a strong intra-day recovery, the Nasdaq
continued to plummet throughout the first part of April, bottoming on April 17th
to a low of 3227. This represented a drop of more than 37 percent from high to
low, which certainly qualifies as a full-fledged bear market. Equity markets
continued to be extraordinarily volatile throughout the remainder of April, with
most indices fluctuating wildly amidst an overall minor recovery. However, the
market's recovery was extremely short-lived. The Nasdaq's plummet began anew
during May, before finally bottoming at 3043 on May 24th. This brought the total
drop in the technology-heavy index to 41 percent. While the Dow and other
value-oriented indices did fare somewhat better than the Nasdaq over this time
span, losses were widespread across the board.
Most equity market indices succeeded in rallying during late May and June. From
its May 24th low to its June 22nd high, the Nasdaq returned in excess of 33
percent, before retreating somewhat by June 30. This recovery was brought on
primarily by a series of economic reports that indicated a slowing of the
economy. Perhaps the most significant report was the May employment report,
which showed an increase in the unemployment rate to 4.1 percent. After the
Federal Reserve had hiked interest rates by 0.50 percent during their May
meeting, the employment report effectively soothed concerns about potential
rampant interest rate increases. By the time the Federal Reserve met again in
late June, widespread interest rate and inflation concerns had been greatly
alleviated. On June 28th, the Federal Reserve announced that it would not raise
rates, thereby giving further credibility to the notion that the economy has
indeed been slowing.
The heavy overweighting in the technology sector that is inherent to the
Enterprise Internet Fund negatively impacted the performance of the Fund during
the first half. As of June 30th, the Fund's top five industries were
Communication Equipment, Semiconductors, Computer Services, Computer Software
and Computer Related & Business Services.
The top ten holdings, as of June 30, 2000, represented slightly less than 30
percent of the Fund's net assets. In descending order, the largest positions
were JDS Uniphase Corporation (4.13 percent), Microsoft Corporation (3.33
percent), Verisign Inc. (3.28 percent), eBay Inc. (3.11 percent), Cisco Systems
Inc. (2.91 percent), Redback Network Inc. (2.78 percent), Ciena Corporation
(2.72 percent), Maxim Integrated Products Inc. (2.50 percent), Intel Corporation
(2.41 percent) and LSI Logic Corporation (2.30 percent). Holdings are subject to
change. The Enterprise Internet Fund is somewhat weighted towards large-cap
stocks. However, a number of smaller companies are also represented in the Fund,
including a significant percentage of mid-cap stocks.
Future Investment Strategy
The last time serious tightening occurred was 1994 when the Federal Reserve
doubled the Fed Funds rate from 3 percent to 6 percent, between April 1994 and
December 1994. A strong sell-off ensued and the highs were not revisited until
early 1995 when the tightening ended. It is Alger's sense that by August, the
Federal Reserve will no longer be inclined to raise rates. Of course this will
depend on whether economic news continues to show a moderating economy. If it
does, there may be a sharp rally in both the bond and stock markets in the
second half of the year, similar to early 1995.
Regardless of market conditions, Alger will persist in emphasizing individual
security selection through thorough, internal research conducted by talented
analysts. Looking ahead, Alger plans to continue to seek out and invest in
companies that it believes will grow their earnings rapidly and consistently.
The Enterprise Internet Fund is a sector fund that focuses on equities in a
specific industry and therefore concentrates its investments in fewer stocks
within the industry than a typical common stock fund would. This strategy may
result in more volatility than the typical growth stock fund because while
individual company stock risk is reduced through diversification, industry risk
can be magnified. In addition, some Internet-related stocks have shown extreme
volatility, trading in a broad range of share prices daily.
The views expressed in this report reflect those of the subadviser only through
the end of the period of the report as stated on the cover. The subadviser's
views are subject to change at any time based on market and other conditions.
THE ENTERPRISE Group of Funds, Inc.
40
<PAGE>
Enterprise Internet Fund
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 97.21%
---------------------------------------------------------------------
Broadcasting -- 1.51%
---------------------------------------------------------------------
AT&T Corporation - Liberty
Media Group (Class A) (a) ............. 262,000 $ 6,353,500
Business Services -- 3.99%
---------------------------------------------------------------------
Ariba Inc. (a) .......................... 90,400 8,863,438
BEA Systems Inc. (a) .................... 160,000 7,910,000
-----------
16,773,438
Communications -- 11.47%
---------------------------------------------------------------------
Brocade Communications Systems
Inc. (a) .............................. 10,800 1,981,631
JDS Uniphase Corporation (a) ............ 144,960 17,378,856
MRV Communications Inc. (a) ............. 50,000 3,362,500
PMC-Sierra Inc. (a) ..................... 35,400 6,290,138
Redback Networks, Inc. (a) .............. 65,600 11,676,800
SDL Inc. (a) ............................ 26,500 7,557,469
-----------
48,247,394
Computer Hardware -- 6.55%
---------------------------------------------------------------------
Cisco Systems Inc. (a) .................. 192,400 12,229,425
Dell Computer Corporation (a) ........... 161,000 7,939,312
Hewlett-Packard Company ................. 59,200 7,392,600
-----------
27,561,337
Computer Services -- 10.47%
----------------------------------------------------------------------
America Online Inc. (a) ................. 141,300 7,453,575
Digex Inc. (a) .......................... 25,000 1,698,437
InterNAP Network Services
Corporation (a) ....................... 130,000 5,397,031
Sun Microsystems Inc. (a) ............... 70,100 6,374,719
VeriSign Inc. (a) ....................... 78,200 13,802,300
Yahoo! Inc. (a) ......................... 75,000 9,290,625
-----------
44,016,687
Computer Software -- 18.28%
----------------------------------------------------------------------
Art Technology Group Inc. (a) ........... 67,200 6,783,000
Broadvision Inc. (a) .................... 70,000 3,556,875
Check Point Software
Technologies Ltd. (a) ................. 25,000 5,293,750
Commerce One Inc. (a) ................... 110,000 4,992,969
Exodus Communications Inc. (a) .......... 117,400 5,407,738
i2 Technologies Inc. (a) ................ 61,445 6,406,601
Microsoft Corporation (a) ............... 175,200 14,016,000
Oracle Corporation (a) .................. 79,300 6,666,156
Phone.com Inc. (a) ...................... 79,600 5,183,950
priceline.com Inc. (a) .................. 140,000 5,317,813
Veritas Software Corporation (a) ........ 64,600 7,300,809
Vignette Corporation (a) ................ 114,500 5,955,789
-----------
76,881,450
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Electronics -- 4.82%
---------------------------------------------------------------------
Applied Materials Inc. (a) .............. 90,200 $ 8,174,375
Broadcom Corporation (Class A)
(a) ................................... 26,600 5,823,738
KLA-Tencor Corporation (a) .............. 107,000 6,266,187
-----------
20,264,300
Manufacturing -- 1.54%
---------------------------------------------------------------------
Corning Inc. ............................ 24,000 6,477,000
Retail -- 3.11%
---------------------------------------------------------------------
eBay Inc. (a) ........................... 241,100 13,094,744
Semiconductors -- 20.44%
---------------------------------------------------------------------
Altera Corporation (a) .................. 83,400 8,501,587
Applied Micro Circuits
Corporation (a) ....................... 42,000 4,147,500
ASM Lithography Holding (a) ............. 120,300 5,308,238
Elantec Semiconductor Inc. (a) .......... 80,000 5,570,000
Intel Corporation ....................... 75,900 10,146,881
LSI Logic Corporation (a) ............... 179,000 9,688,375
Maxim Integrated Products Inc.
(a) ................................... 155,000 10,530,312
Micron Technology Inc. (a) .............. 107,200 9,440,300
Teradyne Inc.(a) ........................ 77,200 5,674,200
Texas Instruments Inc. .................. 123,600 8,489,775
Vitesse Semiconductor
Corporation (a) ....................... 102,600 7,547,513
Xilinx Inc. (a) ......................... 10,800 891,675
-----------
85,936,356
Technology -- 3.54%
---------------------------------------------------------------------
Lam Research Corporation (a) ............ 143,000 5,362,500
Network Appliance Inc. (a) .............. 118,200 9,515,100
-----------
14,877,600
Telecommunications -- 9.77%
---------------------------------------------------------------------
Amdocs Ltd. (a) ......................... 54,000 4,144,500
Ciena Corporation (a) ................... 68,700 11,451,431
Efficient Networks Inc. (a) ............. 64,800 4,766,850
LM Ericsson Telephone Company
(ADR) ................................. 231,200 4,624,000
Nortel Networks Corporation ............. 96,000 6,552,000
Sycamore Networks Inc. (a) .............. 86,300 9,525,363
-----------
41,064,144
Wireless Communications -- 1.72%
---------------------------------------------------------------------
Nokia Corporation (Class A)
(ADR) ................................. 144,400 7,210,975
-----------
Total Common Stocks
(Identified cost $358,759,122)........... 408,758,925
----------------------------------------- -----------
Commercial Paper -- 0.71%
---------------------------------------------------------------------
Nestle Capital Corporation
6.66% due 07/07/00 .................... $3,000,000 2,996,670
-----------
Total Commercial Paper
(Identified cost $2,996,670)............. 2,996,670
----------------------------------------- -----------
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
41
<PAGE>
Enterprise Internet Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Repurchase Agreement -- 0.25%
---------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement, 5.50%
due 07/03/00, Maturity Value
$1,073,492 Collateral: U.S.
Treasury Bond $1,095,000,
6.00% due 02/15/26, Value
$1,122,465 ........................... $1,073,000 $ 1,073,000
------------
Total Repurchase Agreement
(Identified cost $1,073,000).......................... 1,073,000
---------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Total Investments
(Identified cost $362,828,792)......................... $412,828,595
Other Assets Less Liabilities -- 1.83% ................ 7,678,835
------------
Net Assets -- 100% ................................... $420,507,430
---------------------------------------------------------------------
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipt.
See notes to financial statements.
[GRAPHIC OMITTED]
www.enterprisefunds.com
THE ENTERPRISE Group of Funds, Inc.
42
<PAGE>
Enterprise International Internet Fund
SUBADVISER'S COMMENTS
Fred Alger Management, Inc.
New York, New York
Investment Management
Fred Alger Management, Inc., which has approximately $21 billion in assets
under management, became the subadviser to the Fund on June 30, 2000, the
Fund's inception date. Alger's normal investment minimum is $5 million.
Investment Objective
The investment objective of the Enterprise International Internet Fund is to
seek long-term capital appreciation.
Investment Strategies
The Fund pursues its goal by investing primarily in foreign companies engaged in
Internet or intranet related businesses. Under normal market conditions, the
Fund will invest at least 65 percent of its total assets in equity securities of
foreign companies that are engaged in the research, design, development, and
manufacturing of products, processes or services or engaged to a significant
extent in the business of distributing such products, processes or services for
use with the Internet or intranet related businesses and other "high tech"
related industries. The Fund will invest in foreign equity securities and
American Depository Receipts ("ADRs"). ADRs are U.S. dollar-denominated receipts
representing shares of foreign-based corporations. ADRs are issued by U.S. banks
or trust companies, and entitle the holder to all dividends and capital gains
that are paid out of the underlying foreign shares. The Internet is a worldwide
network of computers designed to permit users to share information and transfer
data quickly and easily. The World Wide Web (the "Web"), which is a means of
graphically interfacing with the Internet, is a hypertext based publishing
medium containing text, graphics, interactive feedback mechanisms and links
within Web documents and to other Web documents. The intranet is the application
of Web tools and concepts to a company's internal documents and databases. Other
"high-tech" companies may include firms in the computer, communications, video,
electronics, office and factory automation and robotics sectors.
There is no limit on the market capitalization of the companies in which the
Fund may invest, or in the length of operating history for the companies. The
Fund may invest without limit in initial public offerings ("IPOs"), although it
is uncertain whether such IPOs will be available for investment by the Fund or
what impact, if any, they will have on the Fund's performance. The Fund may also
purchase and sell options and forward currency exchange contracts.
The subadviser selects portfolio securities by evaluating a company's
positioning or business model as well as its ability to grow and expand its
activities via the Internet or achieve a greater competitive advantage in
cost/profitability and brand image leveraging via the use of the Internet. The
subadviser also considers a company's fundamentals by reviewing its balance
sheets, corporate revenues, earnings and dividends. Furthermore, the subadviser
looks at the amount of capital a company currently expends on research and
development. The subadviser believes that dollars invested in research and
development today frequently have a significant bearing on future growth.
First Half 2000 Performance Review
The Fund commenced operations on June 30, 2000. As of June 30, 2000, there were
no investments.
Future Investment Strategy
Initially, Alger expects that the Fund's holdings will be concentrated in three
major regions: Europe, Asia and the United States. Despite possible inclusion of
domestic names, the Fund will maintain at least a 65 percent weighting in
foreign technology holdings at all times. Alger is particularly excited about
the technology opportunities in European equity markets, and therefore expects
that European companies are likely to compose a significant percentage of
THE ENTERPRISE Group of Funds, Inc.
43
<PAGE>
Enterprise International Internet Fund -- (Continued)
SUBADVISER'S COMMENTS
the Fund's net assets. Certainly, the performance of the Fund will be heavily
dependent upon global market conditions and the valuation levels attributed to
technology companies. Regardless of market conditions, however, Alger will
persist in emphasizing individual security selection through thorough, internal
research conducted by talented analysts. Looking ahead, Alger will continue to
seek out and invest in companies that it believes will grow the Fund's earnings
rapidly and consistently.
The Enterprise International Internet Fund is a sector fund that concentrates
its equities in a specific industry, typically possessing higher risks
associated with a less diversified portfolio. In addition, some Internet-related
stocks have shown extreme volatility; trading in a broad range of share prices
daily and international investments include the risk of currency fluctuations,
foreign taxation, differences in accounting standards, and political or economic
instability.
The views expressed in this report reflect those of the subadviser only through
the end of the period of the report as stated on the cover. The subadviser's
views are subject to change at any time based on market and other conditions.
[GRAPHIC OMITTED]
www.enterprisefunds.com
THE ENTERPRISE Group of Funds, Inc.
44
<PAGE>
Enterprise Global Financial Services Fund
SUBADVISER'S COMMENTS
Sanford C. Bernstein & Co., Inc.
New York, New York
Investment Management
Sanford C. Bernstein & Co., Inc., which has approximately $81 billion in assets
under management, became subadviser to the Fund on October 1, 1998. 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 subadviser 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 2000 Performance Review
The Fund's overweight position in regional bank stocks in the U.S. hurt the
Fund's performance relative to the benchmark. Profit warnings from a few
regional banks sent bank stocks into a free fall and raised concerns about
credit quality. Investors have, however, failed to differentiate between banks'
credit quality, creating some interesting buying opportunities within the
sector.
A few observations are important in order to put stock price movements in
perspective. Credit quality data for the industry shows that loan loss reserve
levels are roughly at their 50-year average, implying that the industry in
general has not been under reserving in recent years. While the reserve-to-loan
ratio has been coming down, the rise in the 1980's was in response to the real
estate crisis and emerging markets problems that confronted many banks in that
decade. The decline in recent years is a return to normalcy rather than an
indication that banks have reduced their loan loss reserves to pump up earnings.
In addition, industry revenues have become more diversified. Banks have
diversified by focusing more on fee-generating businesses in lieu of lending.
And unlike money center banks that have diversified by expanding their capital
markets activities, most regional banks have focused on trust, servicing and
processing fees that tend to be more stable. For instance, the Fund holds PNC
Bank, which through its acquisition of First Data Investors Services Group has
created one of the nation's leading full-service processors for pooled
investment products. In addition, as a result of PNC's majority ownership in
asset manager Black Rock, interest income accounted for only 45 percent of PNC's
total revenues at the end of last year. Management expects this ratio to decline
to 40 percent by the end of this year.
THE ENTERPRISE Group of Funds, Inc.
45
<PAGE>
Enterprise Global Financial Services Fund -- (Continued)
SUBADVISER'S COMMENTS
The lackluster performance of the Fund's U.S. holdings was partially offset by
strong performance from the Fund's international holdings. The Fund's
international insurance and real estate holdings turned in a particularly strong
performance. These stocks benefited from improving operating conditions, renewed
corporate activity and investor flight out of the richly valued technology
stocks and into more attractively valued "old economy" stocks.
The Fund's insurance holdings, such as CGNU and Royal & Sun Alliance in the U.K.
and Swiss Re in Switzerland, were buoyed by an improving sentiment towards
property and casualty pricing. Analysis of the capital position for the U.K. and
U.S. insurance markets, as well as the global reinsurance market, suggests that
there is very little, if any, excess capital left in the commercial lines
insurance industry. The diminished capital level, due to poor profitability,
loss reserve deficiencies and large natural disaster and catastrophe losses, is
likely to spur a rise in property and casualty pricing. Anecdotal evidence
suggests price rises are already underway. The Fund's holdings are not, however,
dependent on an improving market to bail them out. They have taken several
measures to restore profitability that are likely to be effective even if
pricing does not improve, such as culling unprofitable business, working harder
to control costs, and cracking down on fraudulent claims.
The Fund's real estate holdings performed well, helped by the rotation into "old
economy" stocks, and by a bid for MEPC, a U.K. real estate company. The offer
price represented a 25 percent premium to the prior day's closing price. The bid
vindicates the value that Bernstein saw when the Fund first invested in MEPC,
and demonstrates once again that the global consolidation trend in the financial
services industry can be the catalyst for realizing value in under priced
securities.
Future Investment Strategy
The financial services industry continues to offer many interesting investment
opportunities. In the near-term, financial stocks may be volatile as investor
sentiment swings. However, the underlying trends that make the industry
attractive, such as changing demographics, restructuring and consolidation, are
still intact. These trends may benefit investors in the long run. Bernstein
continues to focus on attractively valued securities, taking advantage of any
pricing weakness to build positions. As Bernstein has previously stressed, value
investing requires patience.
As with all global 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.
While sector funds focus on equities in a specific industry, they also tend to
concentrate their investments in fewer stocks within the industry than a typical
common stock would. This strategy may result in more volatility than the typical
growth stock fund because while individual company stock risk is reduced through
diversification, industry risk can be magnified.
The views expressed in this report reflect those of the subadviser only through
the end of the period of the report as stated on the cover. The subadviser's
views are subject to change at any time based on market and other conditions.
THE ENTERPRISE Group of Funds, Inc.
46
<PAGE>
Enterprise Global Financial Services Fund
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 67.77%
-----------------------------------------------------------------------
Banking -- 28.87%
-----------------------------------------------------------------------
Bank of America Corporation ............... 23,200 $ 997,600
Bank One Corporation ...................... 34,900 927,031
Chase Manhattan Corporation ............... 20,550 946,584
First Union Corporation ................... 23,100 573,169
FleetBoston Financial Corporation ......... 18,314 622,676
J. P. Morgan & Company Inc. ............... 2,000 220,250
KeyCorp ................................... 27,600 486,450
National City Corporation ................. 36,000 614,250
PNC Bank Corporation ...................... 10,100 473,437
Summit Bancorp ............................ 19,800 487,575
U.S. Bancorp .............................. 24,600 473,550
Wells Fargo & Company ..................... 8,850 342,938
----------
7,165,510
Finance -- 2.86%
-----------------------------------------------------------------------
Household International Inc. .............. 3,000 124,688
Merrill Lynch & Company Inc. .............. 5,100 586,500
----------
711,188
Life Insurance -- 0.92%
-----------------------------------------------------------------------
Torchmark Corporation ..................... 9,300 229,594
Misc. Financial Services -- 13.30%
-----------------------------------------------------------------------
Ambac Financial Group Inc. ................ 8,100 443,981
American Express Company .................. 8,800 458,700
Citigroup Inc. ............................ 19,575 1,179,394
Countrywide Credit Industries Inc. ........ 500 15,156
Fannie Mae ................................ 12,800 668,000
MBIA Inc. ................................. 11,100 534,881
----------
3,300,112
Multi-Line Insurance -- 13.12%
-----------------------------------------------------------------------
American General Corporation .............. 5,500 335,500
American International Group Inc. ......... 16,950 1,991,625
Hartford Financial Services Group Inc. 6,800 380,375
Lincoln National Corporation .............. 9,600 346,800
SAFECO Corporation ........................ 10,100 200,737
----------
3,255,037
Property-Casualty Insurance -- 5.73%
-----------------------------------------------------------------------
Allstate Corporation ...................... 8,800 195,800
Chubb Corporation ......................... 10,000 615,000
St. Paul Companies Inc. ................... 17,900 610,838
----------
1,421,638
Savings and Loan -- 2.97%
-----------------------------------------------------------------------
Washington Mutual Inc. .................... 25,500 736,313
----------
Total Common Stocks
(Identified cost $18,337,244).............. 16,819,392
-------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Foreign Stocks -- 31.99%
-----------------------------------------------------------------------
Banking -- 17.73%
-----------------------------------------------------------------------
Austria -- 0.06%
-----------------------------------------------------------------------
Bank Austria .............................. 300 $ 14,613
Australia -- 0.33%
-----------------------------------------------------------------------
ANZ Banking Group (a) ..................... 10,000 76,610
Westfield Trust New Shares ................ 2,915 5,561
Canada -- 0.69%
-----------------------------------------------------------------------
Bank of Montreal .......................... 800 34,150
Bank of Nova Scotia Halifax ............... 2,521 61,832
National Bank of Canada ................... 5,100 76,155
France -- 0.87%
-----------------------------------------------------------------------
Banque Nationale de Paris ................. 2,250 216,526
Germany -- 1.48%
-----------------------------------------------------------------------
Commerzbank ............................... 7,500 268,796
IKB Deutsche Industriebank ................ 6,220 97,981
Hong Kong -- 0.45%
-----------------------------------------------------------------------
Wing Lung Bank ............................ 34,000 112,526
Italy -- 1.81%
-----------------------------------------------------------------------
Banca Popolare Di Bergamo Credito
Varesino ................................ 5,000 92,511
San Paolo IMI ............................. 20,100 356,732
Japan -- 6.39%
-----------------------------------------------------------------------
Chuo Trust & Banking ...................... 103,000 448,480
Eighteenth Bank Ltd. ...................... 21,000 78,375
Higo Bank Ltd. ............................ 43,000 176,693
Kagoshima Bank Company Ltd. ............... 72,000 271,429
Sumitomo Trust & Banking Company
Ltd. .................................... 36,000 256,162
Tokai Bank Ltd. ........................... 72,000 354,894
Norway -- 0.17%
-----------------------------------------------------------------------
Christiania Bank Og Kreditkasse ........... 2,000 10,745
Sparebanken ............................... 1,400 31,409
Portugal -- 0.09%
-----------------------------------------------------------------------
Banco Espirito Santo ...................... 900 22,082
Singapore -- 0.54%
-----------------------------------------------------------------------
Keppel TatLee Bank ........................ 21,000 35,750
Overseas Union Bank Ltd. .................. 16,308 63,268
Singapore Land Ltd. ....................... 4,000 8,524
United Overseas Bank ...................... 4,112 26,905
Spain -- 1.54%
-----------------------------------------------------------------------
Banco Bilbao Vizcaya ...................... 7,500 112,058
Banco Santander Central Hispano ........... 25,558 269,624
Sweden -- 0.34%
-----------------------------------------------------------------------
Nordbanken Holdings ....................... 11,100 83,690
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
47
<PAGE>
Enterprise Global Financial Services Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Switzerland -- 1.36%
---------------------------------------------------------------------
UBS Ag (a) ............................... 2,295 $ 336,238
United Kingdom -- 1.61%
---------------------------------------------------------------------
Alliance And Leicester ................... 13,700 119,194
Bank Of Scotland ......................... 29,400 279,589
-----------
4,399,102
Insurance -- 3.85%
---------------------------------------------------------------------
Finland -- 0.05%
---------------------------------------------------------------------
Sampo Insurance Company Ltd.
(Class A) .............................. 300 12,172
Switzerland -- 1.35%
---------------------------------------------------------------------
Schweizerische Rueckversicherungs-
Gesellschaft ........................... 165 336,312
United Kingdom -- 2.45%
---------------------------------------------------------------------
Royal & Sun Alliance Insurance Group 93,590 607,511
-----------
955,995
Misc. Financial Services -- 5.47%
---------------------------------------------------------------------
Australia -- 0.51%
---------------------------------------------------------------------
Westfield Trust Units .................... 64,663 125,335
France -- 0.28%
---------------------------------------------------------------------
Simco .................................... 950 69,383
Germany -- 0.87%
---------------------------------------------------------------------
Deutsche Pfandbriefbank .................. 2,150 215,729
Hong Kong -- 0.33%
---------------------------------------------------------------------
Amoy Properties Ltd. ..................... 124,000 82,714
Japan -- 0.52%
---------------------------------------------------------------------
Daiwa Securities Group Inc. .............. 4,000 52,778
San-in Godo Bank Ltd. .................... 12,000 77,357
Netherlands -- 2.04%
---------------------------------------------------------------------
ING Groep ................................ 4,985 336,950
Wereldhave ............................... 3,515 169,467
Sweden -- 0.92%
---------------------------------------------------------------------
Tornet Fastighets ........................ 17,500 229,167
-----------
1,358,880
Multi-Line Insurance -- 3.71%
---------------------------------------------------------------------
France -- 0.23%
---------------------------------------------------------------------
Scor ..................................... 1,300 56,607
Germany -- 1.00%
---------------------------------------------------------------------
Hannover Rueckversicherungs .............. 2,120 153,821
Mannheimer Aktiengesellschaft ............ 1,570 94,430
United Kingdom -- 2.48%
---------------------------------------------------------------------
CGNU ..................................... 37,000 615,831
-----------
920,689
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Property-Casualty Insurance -- 0.78%
---------------------------------------------------------------------
France -- 0.61%
---------------------------------------------------------------------
AGF (Assurances Generales de France) 2,870 $ 151,658
Italy -- 0.17%
---------------------------------------------------------------------
Unipol ................................... 7,500 22,913
Unipol (Preferred) ....................... 11,000 16,698
Unipol (Rts) ............................. 44,000 2,224
-----------
193,493
Real Estate -- 0.45%
---------------------------------------------------------------------
Hong Kong -- 0.36%
---------------------------------------------------------------------
Kerry Properties Ltd. .................... 85,000 89,411
Singapore -- 0.09%
---------------------------------------------------------------------
Keppel Land Ltd. ......................... 17,000 22,542
-----------
111,953
-----------
Total Foreign Stocks
(Identified cost $7,479,544).............. 7,940,112
------------------------------------------ -----------
Warrants -- 0.01%
---------------------------------------------------------------------
Banking -- 0.01%
---------------------------------------------------------------------
Singapore Land Ltd. (Wts) (a) (e) ........ 2,000 1,806
-----------
Total Warrants
(Identified cost $630).................... 1,806
------------------------------------------ -----------
Repurchase Agreement -- 1.07%
-----------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement 5.50% due 07/03/00
Maturity Value $265,121 Collateral:
U.S. Treasury Bond $210,000,
12.75% due 11/15/10, Value
$275,632 ............................... $265,000 265,000
-----------
Total Repurchase Agreement
(Identified cost $265,000)................ 265,000
------------------------------------------ -----------
Total Investments
(Identified cost $26,082,418)............. $25,026,310
Other Assets Less Liabilities -- (0.84)% . (209,527)
-----------
Net Assets -- 100% ....................... $24,816,783
------------------------------------------ -----------
</TABLE>
(a) Non-income producing security.
(e) The warrants entitle the Fund to purchase 1 share of Singapore Land Ltd.
common stock for every warrant held and 2.20 EUR until 3/23/05.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
48
<PAGE>
Enterprise Managed Fund
SUBADVISERS' COMMENTS
OpCap Advisors, Inc.
New York, New York
Sanford C. Bernstein & Co., Inc.
New York, New York
Investment Management
OpCap Advisors, a wholly owned subsidiary of Oppenheimer Capital, became
subadviser to the Enterprise Managed Fund on October 1, 1994. Oppenheimer
Capital manages approximately $40 billion for institutional clients, and its
normal investment minimum is $20 million.
Sanford C. Bernstein & Co., Inc., which has approximately $81 billion in assets
under management, became co- subadviser of the Fund on November 1, 1999.
Bernstein's normal investment minimum is $5 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 economic and
market trends and 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 subadvisers believe 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 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 2000 Performance Review -- OpCap Advisors
The Fund's technology holdings were the largest detractor from performance for
the first half of the year. Although the Fund has significant investments in
this sector, the tech stocks owned by the Fund, such as Computer Associates
International and Sabre Holdings, trailed by a wide margin the returns of the
highly-valued, more speculative tech stocks that led the market, especially in
the first quarter. The Fund's holdings of consumer non-durable and financial
stocks contributed most to performance in the first half.
Because the market has been so volatile and the outlook for interest rates is
uncertain, the Fund maintained a defensive investment posture and this helped
preserve capital. At June 30, 2000, of the portion of the Fund managed by OpCap
Advisors, 68 percent of net assets were allocated to common stocks, 13 percent
to fixed-income securities and 19 percent to cash equivalents. The Fund's
holdings of fixed-income securities and cash equivalents provide a buffer
against stock market volatility, generate income and represent a resource to buy
quality stocks when they become available at attractive prices.
First Half 2000 Performance Review -- Sanford C. Bernstein
Security selection added to relative returns in the first half of 2000. Security
selection within the energy sector detracted most, largely because the Fund
avoided independents and oil service companies because they are extremely
volatile and highly leveraged. These stocks outperformed, particularly in the
first quarter, because their earnings are extremely sensitive to the price of
oil. Many of the Fund's paper and chemical holdings in the industrial resources
sector also underperformed, due to concerns about a U.S. economic slowdown and
rising inventories in certain grades of paper. Offsetting this, however, was
strong stock selection in technology. The Fund avoided, or underweighted, most
of the technology stocks that fell furthest this spring, while the
semi-conductor and semi-conductor equipment companies that the Fund
overweighted, rallied strongly.
THE ENTERPRISE Group of Funds, Inc.
49
<PAGE>
Enterprise Managed Fund -- (Continued)
SUBADVISERS' COMMENTS
The largest contributors to performance were the Fund's overweighted positions
in Advanced Micro Devices, Hewlett Packard, Intel and Champion International,
and the Fund's underweight position in Yahoo!. The largest detractors from
performance were the Fund's overweighted positions in Motorola and Bristol Myers
Squibb, and the Fund's underweighted positions in Micron Technology and
Pharmacia.
The Fund's sector weights hurt performance. The Fund's underweight of the strong
consumer growth sector was the biggest detractor, despite positive security
selection within the sector. The Fund's modest overweight of consumer cyclicals
was also a negative. Offsetting this was the positive impact of the Fund's
overweighted position in energy.
Future Investment Strategy -- OpCap Advisors
Looking ahead, OpCap remains focused on long-term investment in companies that
create shareholder value by earning high returns on capital, generating
significant free cash flow and effectively using that cash flow to increase the
value of their business. The companies the Fund is invested in continue to
deliver strong financial results, and OpCap expects those results may translate
into higher share prices over time.
Future Investment Strategy -- Sanford C. Bernstein
Bernstein continues to see unusually large opportunities in the value realm. The
Fund remains attractively priced, relative to the S&P 500, with
price-to-earnings and price-to-book ratios lower than that of the Index, and
with a higher dividend yield. The Fund's weighted-average capitalization is
somewhat higher than that of the S&P 500, as well.
The views expressed in this report reflect those of the subadvisers only through
the end of the period of the report as stated on the cover. The subadvisers'
views are subject to change at any time based on market and other conditions.
[GRAPHIC OMITTED]
www.enterprisefunds.com
THE ENTERPRISE Group of Funds, Inc.
50
<PAGE>
Enterprise Managed Fund
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 84.00%
-----------------------------------------------------------------------
Aerospace -- 2.31%
-----------------------------------------------------------------------
Boeing Company ............................. 149,200 $ 6,238,425
Honeywell International Inc. ............... 10,500 353,719
Northrop Grumman Corporation ............... 3,800 251,750
-----------
6,843,894
Automotive -- 0.89%
-----------------------------------------------------------------------
Cummins Engine Company Inc. ................ 6,900 188,025
Delphi Automotive Systems
Corporation .............................. 39,800 579,587
Ford Motor Company ......................... 17,800 765,400
General Motors Corporation ................. 1,880 109,158
Genuine Parts Company ...................... 42,000 840,000
TRW Inc. ................................... 2,900 125,787
Visteon Corporation ........................ 2,331 28,259
-----------
2,636,216
Banking -- 6.01%
-----------------------------------------------------------------------
Bank of America Corporation ................ 46,800 2,012,400
Bank One Corporation ....................... 27,000 717,187
Chase Manhattan Corporation ................ 16,800 773,850
First Union Corporation .................... 17,200 426,775
FleetBoston Financial Corporation .......... 71,200 2,420,800
J. P. Morgan & Company Inc. ................ 2,600 286,325
M & T Bank Corporation ..................... 8,250 3,712,500
National City Corporation .................. 11,900 203,044
PNC Bank Corporation ....................... 15,100 707,813
Summit Bancorp ............................. 5,800 142,825
Wells Fargo & Company ...................... 166,100 6,436,375
-----------
17,839,894
Biotechnology -- 0.34%
-----------------------------------------------------------------------
Amgen Inc. (a) ............................. 14,300 1,004,575
Broadcasting -- 0.49%
-----------------------------------------------------------------------
News Corporation Ltd. (ADR) ................ 6,000 285,000
Time Warner Inc. ........................... 6,600 501,600
Viacom Inc. (a) ............................ 9,600 654,600
-----------
1,441,200
Brokers -- 0.53%
-----------------------------------------------------------------------
Bear Stearns Companies Inc. ................ 6,600 274,725
Lehman Brothers Holdings Inc. .............. 13,600 1,286,050
-----------
1,560,775
Capital Goods & Services -- 0.11%
-----------------------------------------------------------------------
Cooper Industries Inc. ..................... 9,700 315,856
Chemicals -- 2.45%
-----------------------------------------------------------------------
Ashland Inc. ............................... 15,400 539,962
Du Pont (E. I.) de Nemours & Company 133,400 5,836,250
Union Carbide Corporation .................. 17,700 876,150
-----------
7,252,362
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Computer Hardware -- 5.96%
-----------------------------------------------------------------------
Apple Computer Inc. ........................ 9,600 $ 502,800
Cisco Systems Inc. (a) ..................... 105,200 6,686,775
Compaq Computer Corporation ................ 11,100 283,744
Dell Computer Corporation (a) .............. 24,900 1,227,881
EMC Corporation (a) ........................ 39,000 3,000,562
Hewlett-Packard Company .................... 23,700 2,959,538
International Business Machines
Corporation .............................. 24,800 2,717,150
Seagate Technology Inc. (a) ................ 5,700 313,500
-----------
17,691,950
Computer Services -- 2.47%
-----------------------------------------------------------------------
Advanced Micro Devices Inc. (a) ............ 10,600 818,850
America Online Inc. (a) .................... 18,000 949,500
Electronic Data Systems Corporation ........ 26,000 1,072,500
Sabre Holdings Corporation
(Class A) (a) ............................ 40,439 1,152,511
Solectron Corporation (a) .................. 9,600 402,000
Sun Microsystems Inc. (a) .................. 28,400 2,582,625
Yahoo! Inc. (a) ............................ 2,800 346,850
-----------
7,324,836
Computer Software -- 4.72%
-----------------------------------------------------------------------
Computer Associates International Inc. ..... 101,100 5,175,056
Compuware Corporation (a) .................. 70,100 727,287
Microsoft Corporation (a) .................. 60,700 4,856,000
Oracle Corporation (a) ..................... 38,700 3,253,219
-----------
14,011,562
Conglomerates -- 1.81%
-----------------------------------------------------------------------
Minnesota Mining & Manufacturing
Company .................................. 32,900 2,714,250
Textron Inc. ............................... 49,000 2,661,312
-----------
5,375,562
Consumer Products -- 0.66%
-----------------------------------------------------------------------
Black & Decker Corporation ................. 3,500 137,594
Briggs & Stratton Corporation .............. 600 20,550
Procter & Gamble Company ................... 18,000 1,030,500
Whirlpool Corporation ...................... 16,500 769,312
-----------
1,957,956
Crude & Petroleum -- 5.16%
-----------------------------------------------------------------------
Anadarko Petroleum Corporation ............. 12,600 621,338
Chevron Corporation ........................ 65,700 5,572,181
Exxon Mobil Corporation .................... 58,700 4,607,950
Royal Dutch Petroleum Company
(ADR) .................................... 43,400 2,671,812
Texaco Inc. ................................ 8,900 473,925
Unocal Corporation ......................... 34,500 1,142,813
USX Marathon Group ......................... 8,400 210,525
-----------
15,300,544
Electrical Equipment -- 2.78%
-----------------------------------------------------------------------
Emerson Electric Company ................... 18,500 1,116,937
General Electric Company ................... 134,400 7,123,200
-----------
8,240,137
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
51
<PAGE>
Enterprise Managed Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Electronics -- 0.72%
---------------------------------------------------------------------
Applied Materials Inc. (a) ............... 18,600 $ 1,685,625
KLA-Tencor Corporation (a) ............... 2,600 152,263
Rockwell International Corporation ....... 9,700 305,550
-----------
2,143,438
Energy -- 1.30%
---------------------------------------------------------------------
AES Corporation (a) ...................... 8,000 365,000
Cinergy Corporation ...................... 36,100 918,294
Enron Corporation ........................ 350 22,575
FirstEnergy Corporation .................. 45,600 1,065,900
New Century Energies Inc. ................ 32,500 975,000
TXU Corporation .......................... 16,800 495,600
-----------
3,842,369
Entertainment & Leisure -- 0.46%
---------------------------------------------------------------------
Walt Disney Company ...................... 23,100 896,569
Carnival Corporation ..................... 10,900 212,550
Harrah's Entertainment Inc. (a) .......... 11,900 249,156
-----------
1,358,275
Finance -- 2.48%
---------------------------------------------------------------------
Dun & Bradstreet Corporation ............. 20,200 578,225
Household International Inc. ............. 99,800 4,147,937
MBNA Corporation ......................... 11,100 301,088
Merrill Lynch & Company Inc. ............. 4,100 471,500
MGIC Investment Corporation .............. 11,700 532,350
Morgan Stanley Dean Witter &
Company ................................ 16,000 1,332,000
-----------
7,363,100
Food, Beverages & Tobacco -- 1.69%
---------------------------------------------------------------------
Anheuser-Busch Companies, Inc. ........... 11,700 873,844
Coca-Cola Company ........................ 23,600 1,355,525
Conagra Inc. ............................. 18,100 345,031
Fortune Brands Inc. ...................... 18,900 435,881
General Mills Inc. ....................... 12,100 462,825
PepsiCo Inc. ............................. 200 8,888
Philip Morris Companies Inc. ............. 56,000 1,487,500
Unilever ................................. 1,000 43,000
-----------
5,012,494
Hotels & Restaurants -- 2.56%
---------------------------------------------------------------------
McDonald's Corporation ................... 230,300 7,585,506
Insurance -- 0.55%
---------------------------------------------------------------------
XL Capital Ltd. (Class A) ................ 30,000 1,623,750
Manufacturing -- 1.74%
---------------------------------------------------------------------
ITT Industries Inc. ...................... 130,000 3,948,750
Tyco International Ltd. .................. 25,600 1,212,800
-----------
5,161,550
Medical Instruments -- 0.11%
---------------------------------------------------------------------
PE Biosystems Group ...................... 5,000 329,375
Medical Services -- 0.23%
---------------------------------------------------------------------
UnitedHealth Group Inc. .................. 7,900 677,425
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Metals & Mining -- 0.49%
---------------------------------------------------------------------
Alcoa Inc. ............................... 41,800 $ 1,212,200
Arch Coal Inc. ........................... 1 7
Worthington Industries Inc. .............. 22,200 233,100
-----------
1,445,307
Misc. Financial Services -- 5.31%
---------------------------------------------------------------------
American Express Company ................. 19,500 1,016,437
Citigroup Inc. ........................... 97,300 5,862,325
Fannie Mae ............................... 19,700 1,028,094
Freddie Mac .............................. 179,600 7,273,800
John Hancock Financial Services Inc. (a) 24,000 568,500
-----------
15,749,156
Multi-Line Insurance -- 0.85%
---------------------------------------------------------------------
American General Corporation ............. 11,900 725,900
American International Group Inc. ........ 12,900 1,515,750
Lincoln National Corporation ............. 7,700 278,163
-----------
2,519,813
Oil Services -- 1.49%
---------------------------------------------------------------------
Amerada Hess Corporation ................. 9,800 605,150
Conoco Inc., Class B ..................... 8,400 206,325
Kerr-McGee Corporation ................... 2,400 141,450
Occidental Petroleum Corporation ......... 52,000 1,095,250
Phillips Petroleum Company ............... 26,700 1,353,356
Rowan Companies Inc. ..................... 21,800 662,175
Tosco Corporation ........................ 12,500 353,906
-----------
4,417,612
Paper & Forest Products -- 0.46%
---------------------------------------------------------------------
Fort James Corporation ................... 1,000 23,125
Georgia-Pacific Group .................... 11,500 301,875
International Paper Company .............. 34,529 1,029,396
-----------
1,354,396
Paper Products -- 0.20%
---------------------------------------------------------------------
Westvaco Corporation ..................... 17,400 431,738
Willamette Industries Inc. ............... 6,100 166,225
-----------
597,963
Pharmaceuticals -- 8.70%
---------------------------------------------------------------------
Abbott Laboratories ...................... 10,900 485,731
American Home Products Corporation ....... 102,300 6,010,125
Baxter International Inc. ................ 17,400 1,223,438
Bristol-Myers Squibb Company ............. 60,000 3,495,000
Eli Lilly & Company ...................... 10,500 1,048,688
Johnson & Johnson ........................ 32,700 3,331,312
Merck & Company Inc. ..................... 40,300 3,087,988
Pfizer Inc. .............................. 50,600 2,428,800
Pharmacia Corporation .................... 79,474 4,107,812
Schering-Plough Corporation .............. 11,600 585,800
-----------
25,804,694
Property-Casualty Insurance -- 0.08%
---------------------------------------------------------------------
St. Paul Companies Inc. .................. 7,400 252,525
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
52
<PAGE>
Enterprise Managed Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Publishing -- 0.02%
---------------------------------------------------------------------
New York Times Company .................. 1,600 $ 63,200
Raw Materials -- 0.09%
---------------------------------------------------------------------
Weyerhaeuser Company .................... 6,100 262,300
Retail -- 4.54%
---------------------------------------------------------------------
CVS Corporation ......................... 4,500 180,000
Federated Department Stores Inc. (a) .... 27,100 914,625
Gap Inc. ................................ 9,100 284,375
Home Depot Inc. ......................... 40,050 1,999,997
K-Mart Corporation (a) .................. 50,600 344,713
Kroger Company (a) ...................... 195,000 4,302,187
Limited Inc. ............................ 19,800 428,175
May Department Stores Company ........... 36,100 866,400
Target Corporation ...................... 5,000 290,000
TJX Companies Inc. ...................... 6,000 112,500
Wal-Mart Stores Inc. .................... 65,000 3,745,625
------------
13,468,597
Savings and Loan -- 0.34%
---------------------------------------------------------------------
Golden West Financial Corporation ....... 13,200 538,725
Washington Mutual Inc. .................. 16,200 467,775
------------
1,006,500
Semiconductors -- 3.60%
---------------------------------------------------------------------
Intel Corporation ....................... 58,600 7,834,087
LSI Logic Corporation (a) ............... 9,800 530,425
Texas Instruments Inc. .................. 33,800 2,321,638
------------
10,686,150
Technology -- 0.23%
---------------------------------------------------------------------
Agilent Technologies Inc. (a) ........... 4,303 317,346
Micron Technology Inc. (a) .............. 4,100 361,057
------------
678,403
Telecommunications -- 6.69%
---------------------------------------------------------------------
AT&T Corporation ........................ 53,500 1,691,937
Bell Atlantic Corporation ............... 100,450 5,104,116
BellSouth Corporation ................... 7,400 315,425
GTE Corporation ......................... 21,700 1,350,825
Lucent Technologies Inc. ................ 37,300 2,210,025
Nortel Networks Corporation ............. 46,200 3,153,150
QUALCOMM Inc. (a) ....................... 8,600 516,000
SBC Communications Inc. ................. 38,000 1,643,500
Sprint Corporation ...................... 24,400 1,244,400
U.S. West Inc. .......................... 200 17,150
Worldcom Inc. (a) ....................... 56,800 2,605,700
------------
19,852,228
Transportation -- 0.51%
---------------------------------------------------------------------
AMR Corporation (a) ..................... 15,000 396,562
Burlington Northern Santa Fe
Corporation ........................... 5,200 119,275
Norfolk Southern Corporation ............ 17,900 266,263
Union Pacific Corporation ............... 19,700 732,594
------------
1,514,694
Utilities -- 1.02%
---------------------------------------------------------------------
Ameren Corporation ...................... 28,400 958,500
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
American Electric Power Inc. ............ 33,300 $ 986,512
GPU Inc. ................................ 33,000 893,062
PG & E Corporation ...................... 7,900 194,538
------------
3,032,612
Waste Management -- 0.32%
---------------------------------------------------------------------
Waste Management Inc. ................... 49,600 942,400
Wireless Communications -- 0.53%
---------------------------------------------------------------------
Motorola Inc. ........................... 54,300 1,578,094
------------
Total Common Stocks
(Identified cost $235,362,959)........... 249,121,245
----------------------------------------- ------------
Commercial Paper -- 4.38%
---------------------------------------------------------------------
American Express Credit Corporation,
6.46% due 07/05/00 .................... $6,000,000 5,995,693
Deere (John) Capital Corporation
6.53% due 07/06/00 .................... 7,000,000 6,993,652
------------
Total Commercial Paper
(Identified cost $12,989,345)............ 12,989,345
----------------------------------------- ------------
U. S. Government & Agency Obligations -- 7.97%
---------------------------------------------------------------------
Fannie Mae 6.50% due 08/15/04 ........... 18,000,000 17,650,908
Federal Home Loan Bank Consolidated
Discount Note, 6.36% due 07/10/00 ..... 6,000,000 5,990,460
------------
Total U. S. Government
& Agency Obligations
(Identified cost $23,819,194)............. 23,641,368
------------------------------------------ ------------
Repurchase Agreement -- 2.84%
-----------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement 5.50% due 07/03/00,
Maturity Value $8,438,866
Collateral: U.S. Treasury Note
$3,300,000, 6.25% due 10/31/01,
Value $3,359,499
U.S. Treasury Bond $4,630,000,
10.75% due 02/15/03,
Value $5,471,318 ...................... 8,435,000 8,435,000
------------
Total Repurchase Agreement
(Identified cost $8,435,000)............. 8,435,000
----------------------------------------- ------------
Total Investments
(Identified cost $280,606,497)........... $294,186,958
Other Assets Less Liabilities -- 0.81% .. 2,405,995
------------
Net Assets -- 100% ...................... $296,592,953
----------------------------------------- ------------
</TABLE>
(a) Non-income producing security.
(ADR) American Depository Receipt.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
53
<PAGE>
Enterprise Balanced Fund
SUBADVISER'S COMMENTS
Montag & Caldwell
Atlanta, Georgia
Investment Management
Montag & Caldwell, which has approximately $33 billion in assets under
management, became subadviser to the Fund on July 1, 1999. Montag's normal
investment minimum for a separate account is $40 million.
Investment Objective
The Fund seeks long-term total return.
Investment Strategies
Generally, between 55 percent and 75 percent of the Balanced Fund's total assets
will be invested in equity securities, and at least 25 percent of the Balanced
Fund's total assets will be invested in fixed income securities. The portfolio
allocation will vary based upon the subadviser's assessment of the return
potential of each asset class. For equity investments, the subadviser uses a
bottom-up approach to stock selection, focusing on high quality,
well-established companies that have a strong history of earnings growth;
attractive prices relative to the company's potential for above average;
long-term earnings and revenue growth; strong balance sheets; a sustainable
competitive advantage; the potential to become (or currently are) industry
leaders; and the potential to outperform the market during downturns. When
selecting fixed income securities, the subadviser will seek to maintain the
Fund's weighted average duration within 20 percent of the duration of the Lehman
Brothers Government Corporate Index. Emphasis is also placed on diversification
and credit analysis. The Fund will only invest in fixed income securities with
an "A" or better rating. Fixed income investments will include: U.S. Government
securities; corporate bonds; mortgage/asset-backed securities; and money market
securities and repurchase agreements.
First Half 2000 Performance Review
The stock market as measured by the S&P 500 Index was negative for most of the
first quarter of 2000 until the brisk rally in March pushed the index into
modestly positive territory. The divergence in performance between technology
stocks and all other stocks continued to widen until the end of the quarter. The
100 largest companies on the Nasdaq gained nearly 19 percent during the quarter,
while the 439 non-tech stocks in the S&P 500 were on average down for the
quarter. During the first quarter of 2000, the strength of the Fund's technology
issues did not offset the weakness of other holdings. Because Montag believes
that many technology stocks have become too highly priced, the Fund has
maintained a more conservative position in technology relative to the market. In
the Balanced Fund, bonds provided a positive return for the quarter.
Stocks finished the second quarter lower as investors reacted negatively to the
prospects of higher interest rates and their impact on a fully valued market.
Concerns also surfaced about whether many developing technology and Internet
companies would ever post a profit, leading to a sell off in this overvalued
sector of the market. From its peak on March 10 to its low on May 24, the Nasdaq
declined over 35 percent and finished the quarter down 13 percent. The S&P 500
finished the quarter down 2.7 percent.
In this difficult environment, companies with good earnings and more
conservative valuations tended to do well. As evidence of this, two of the best
performing sectors of the S&P 500 were healthcare, up 22 percent, and consumer
staples, up 6 percent.
Healthcare was the best performing sector of the S&P 500 for the second quarter.
Among the Fund's holdings, Johnson & Johnson was the standout, gaining 45
percent for the quarter, while Schering Plough and Pfizer rose over 30 percent.
THE ENTERPRISE Group of Funds, Inc.
54
<PAGE>
Enterprise Balanced Fund -- (Continued)
SUBADVISER'S COMMENTS
In the consumer staple area, Bestfoods increased over 48 percent as it agreed to
be acquired by Unilever, while Coca-Cola and PepsiCo gained over 20 percent.
The bond portion of the Fund provided some pleasant surprises. Although the
Federal Reserve raised short-term interest rates three times during the period,
yields on long-term Treasury bonds actually fell. The federal budget surplus has
caused the government to buy back bonds to retire debt, particularly long-term
debt that offers the greatest potential interest savings. The government has
conducted "reverse auctions," where it is willing to pay a premium to retire
these bonds prior to maturity. This caused Treasury bond prices to rise and
yields to fall. The Fund benefited from this unusual event because of its heavy
weighting in long-term Treasury bonds. In addition, the Fund also benefited from
the unusually large, extra yield offered by long-term corporate bonds compared
to comparably maturing Treasury securities. Meanwhile, mortgage-backed
securities produced strong returns, as the rising interest rate environment made
it unlikely that homeowners would refinance their debt.
Future Investment Strategy
Because Montag & Caldwell expects continued economic growth with low inflation,
it believes the outlook for the stock market remains positive. The market, as
measured by the S&P 500, may continue to be volatile and move in a sideways
pattern until it becomes more evident that the Federal Reserve has succeeded at
engineering a soft landing. However, as this develops, interest rates may peak
and eventually drift lower, with corporate profit growth being sustained, but at
a more moderate rate. Such an outcome may allow the market to broaden out with
more stocks moving higher as the stock market indices advance.
In a more moderately growing economy, Montag & Caldwell believes higher quality
issues that can produce solid double-digit earnings growth may excel. With
global economies recovering and the enormous longer-term opportunities deriving
from the triumph of capitalism, Montag & Caldwell believes multinational growth
companies may do particularly well. These include well-positioned consumer,
pharmaceutical, technology and financial service companies with global reach. As
it becomes more evident that the Federal Reserve is succeeding in bringing about
a soft landing, higher-quality consumer growth companies that conduct most of
their business in the United States may also be rewarding investments for the
Fund.
The Federal Reserve acted for the sixth time since June of 1999, raising the
Federal Funds rate 0.50 percentage points to 6.50 percent in May to slow the
U.S. economy. During the second quarter, Montag & Caldwell capitalized on the
strong rally in longer maturities and shortened duration exposure in the Fund.
The Fund sold longer dated U.S. Treasuries, which have appreciated nicely since
January, and purchased intermediate corporate notes, which were trading at
attractive yield spreads versus similar maturity U.S. Treasury securities.
Montag & Caldwell anticipates lengthening the Fund's fixed-income holdings early
in the second half, as the U.S. economy slows in order to stay in line with the
appropriate fixed-income benchmark.
The views expressed in this report reflect those of the subadviser only through
the end of the period of the report as stated on the cover. The subadviser's
views are subject to change at any time based on market and other conditions.
THE ENTERPRISE Group of Funds, Inc.
55
<PAGE>
Enterprise Balanced Fund
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Common Stocks -- 59.79%
---------------------------------------------------------------------
Banking -- 1.35%
---------------------------------------------------------------------
Wells Fargo & Company ..................... 4,500 $ 174,375
Business Services -- 0.83%
---------------------------------------------------------------------
Interpublic Group of Companies Inc. ....... 2,500 107,500
Computer Hardware -- 4.31%
---------------------------------------------------------------------
Dell Computer Corporation (a) ............. 4,700 231,769
Hewlett-Packard Company ................... 2,600 324,675
----------
556,444
Computer Services -- 4.18%
---------------------------------------------------------------------
Electronic Data Systems Corporation ....... 7,100 292,875
Solectron Corporation (a) ................. 5,900 247,062
----------
539,937
Computer Software -- 2.60%
---------------------------------------------------------------------
Electronic Arts Inc. (a) .................. 2,200 160,462
Microsoft Corporation (a) ................. 2,200 176,000
----------
336,462
Consumer Products -- 3.97%
---------------------------------------------------------------------
Gillette Company .......................... 10,500 366,844
Newell Rubbermaid Inc. .................... 5,700 146,775
----------
513,619
Electrical Equipment -- 0.57%
---------------------------------------------------------------------
General Electric Company .................. 1,400 74,200
Food, Beverages & Tobacco -- 7.46%
---------------------------------------------------------------------
Bestfoods ................................. 5,200 360,100
Coca-Cola Company ......................... 7,500 430,781
PepsiCo Inc. .............................. 3,900 173,306
----------
964,187
Health Care -- 1.50%
---------------------------------------------------------------------
Medtronic Inc. ............................ 3,900 194,269
Hotels & Restaurants -- 4.64%
---------------------------------------------------------------------
Marriott International Inc. (Class A) ..... 7,500 270,469
McDonald's Corporation .................... 10,000 329,375
----------
599,844
Medical Instruments -- 1.38%
---------------------------------------------------------------------
Boston Scientific Corporation (a) ......... 8,100 177,694
Misc. Financial Services -- 2.26%
---------------------------------------------------------------------
American Express Company .................. 2,700 140,738
Citigroup Inc. ............................ 2,500 150,625
----------
291,363
Multi-Line Insurance -- 1.36%
---------------------------------------------------------------------
American International Group Inc. ......... 1,500 176,250
Pharmaceuticals -- 9.73%
---------------------------------------------------------------------
Bristol-Myers Squibb Company .............. 4,200 244,650
Johnson & Johnson ......................... 3,000 305,625
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Pfizer Inc. ............................... 9,900 $ 475,200
Schering-Plough Corporation ............... 4,600 232,300
----------
1,257,775
Retail -- 4.70%
---------------------------------------------------------------------
Circuit City Stores Inc. .................. 4,400 146,025
Costco Wholesale Corporation (a) .......... 4,800 158,400
Gap Inc. .................................. 2,200 68,750
Home Depot Inc. ........................... 4,700 234,706
----------
607,881
Semiconductors -- 1.35%
---------------------------------------------------------------------
Intel Corporation ......................... 1,300 173,794
Telecommunications -- 6.79%
---------------------------------------------------------------------
Lucent Technologies Inc. .................. 6,200 367,350
Tellabs Inc. (a) .......................... 3,300 225,844
Worldcom Inc. (a) ......................... 6,200 284,425
----------
877,619
Wireless Communications -- 0.81%
---------------------------------------------------------------------
Motorola Inc. ............................. 3,600 104,625
----------
Total Common Stocks
(Identified cost $7,379,647)............... 7,727,838
------------------------------------------- ----------
Corporate Bonds and Notes -- 11.77%
---------------------------------------------------------------------
Automotive -- 0.97%
---------------------------------------------------------------------
Daimler Chrysler North America 7.40%
due 01/20/05 ............................ $125,000 124,696
Banking -- 2.08%
---------------------------------------------------------------------
Discover Card 5.85% due 01/17/06 .......... 100,000 96,290
Nationsbank Corporation 7.00% due
05/15/03 ................................ 175,000 172,869
----------
269,159
Energy -- 1.26%
---------------------------------------------------------------------
Peco Energy Transport Trust 6.05% due
03/01/09 ................................ 175,000 163,413
Finance -- 3.31%
---------------------------------------------------------------------
Ford Motor Credit Company 7.00% due
09/25/01 ................................ 125,000 124,493
Goldman Sachs Group Inc. 7.50% due
01/28/05 ................................ 150,000 149,303
National Rural Utilities Cooperative
Finance, 5.75% due 11/01/08 ............. 175,000 154,068
----------
427,864
Oil Services -- 1.29%
---------------------------------------------------------------------
Conoco Inc. 5.90% due 04/15/04 ............ 175,000 166,703
Pharmaceuticals -- 0.75%
---------------------------------------------------------------------
Warner Lambert Company 5.75% due
01/15/03 ................................ 100,000 97,012
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
56
<PAGE>
Enterprise Balanced Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Retail -- 0.95%
------------------------------------------------------------------------
Wal-Mart Stores Inc. 6.875% due
08/10/09 ............................... $ 125,000 $ 122,427
Telecommunications -- 1.16%
------------------------------------------------------------------------
Bellsouth Capital Funding Corporation,
7.75% due 02/15/10 ..................... 150,000 149,927
-----------
Total Corporate Bonds and Notes
(Identified cost $1,536,663).............. 1,521,201
---------------------------------------- -----------
U. S. Government Obligations -- 16.06%
------------------------------------------------------------------------
Federal Agencies -- 3.79%
------------------------------------------------------------------------
Fannie Mae 5.75% due 04/15/03 ............ 175,000 169,574
Federal Home Loan Bank 5.125% due
04/17/01 ............................... 150,000 147,993
Freddie Mac 6.25% due 10/15/02 ........... 175,000 172,490
-----------
490,057
U. S. Treasury Notes -- 5.29%
------------------------------------------------------------------------
6.625% due 04/30/02 ...................... 255,000 255,637
5.75% due 08/15/03 ....................... 275,000 270,274
7.875% due 11/15/04 ...................... 150,000 158,727
-----------
684,638
U. S. Treasury Bonds -- 6.98%
------------------------------------------------------------------------
7.25% due 05/15/16 ....................... 125,000 137,539
8.125% due 08/15/19 ...................... 225,000 271,406
8.00% due 11/15/21 ....................... 150,000 181,031
6.25% due 08/15/23 ....................... 175,000 176,094
6.875% due 08/15/25 ...................... 125,000 135,899
-----------
901,969
-----------
Total U. S. Government Obligations
(Identified cost $2,055,948).............. 2,076,664
------------------------------------------ -----------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Repurchase Agreement -- 12.51%
------------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement 5.50% due 07/03/00,
Maturity Value $1,617,741
Collateral: U.S. Treasury Note
$1,680,000, 5.50% due 05/31/03,
Value $1,658,426 ....................... $1,617,000 $ 1,617,000
-----------
Total Repurchase Agreement
(Identified cost $1,617,000).............. 1,617,000
------------------------------------------ -----------
Total Investments
(Identified cost $12,589,258)............. $12,942,703
Other Assets Less Liabilities -- (0.13)% . (16,884)
-----------
Net Assets -- 100% ....................... $12,925,819
------------------------------------------ -----------
</TABLE>
(a) Non-income producing security.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
57
<PAGE>
Enterprise High-Yield Bond Fund
SUBADVISER'S COMMENTS
Caywood-Scholl Capital Management
San Diego, California
Investment Management
Caywood-Scholl has been subadviser to the Enterprise High-Yield Bond Fund since
its inception in 1987. Caywood-Scholl manages approximately $1.3 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 subadviser 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
subadviser 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 subadviser have characteristics of such lower-grade bonds.
Should an investment be subsequently downgraded to Ca or lower or CC or lower,
the subadviser 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 subadviser, 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 2000 Performance Review
During the first quarter of the year, most high-yield investors found themselves
caught off guard by the severity of spread widening which had occurred in the
preceding three months. In hindsight, the actions of the Federal Reserve and the
resulting impact on investor psychology were underestimated. Despite relatively
good market fundamentals, the asset class was out of favor due to investor
concerns about the Federal Reserve's action. Caywood-Scholl's conclusion was
that the relatively good fundamentals of the market compared to the attractive
valuations meant the market was cheap on a risk-adjusted basis.
What changed during the second quarter? Not a whole lot, accordingly the
high-yield market experienced a volatile yet unremarkable quarter. The double B
sector of the market, as measured by the Lehman BB index, returned 2.26 percent
while the single B sector of the market, as represented by the Merrill Lynch
Cash Pay index, returned 0.63 percent. The variance in returns between the two
sectors of the market is explained by investors' preference for better quality,
more liquid securities.
There are a couple of themes worth mentioning: First, some of the economic data
released in the latter part of May and through June suggest that the U.S.
economy is slowing. This is giving hope that the Federal Reserve may be nearly
finished raising rates. As evidence of a soft landing emerges Caywood-Scholl
would expect high-yield bonds to react favorably. In support of this thesis, the
market had its first month of net inflows this year in June, approximately
$1.038 billion. It is Caywood-Scholl's belief that it is premature to pronounce
a soft landing, but Caywood-Scholl feels more optimistic. The inflow of cash
from mutual fund investors is important because it has helped to balance the
market's technical picture. Equally important, the amount of new issuance slowed
dramatically with only $8.5 billion issued during the second quarter. The
market's technical balance had a favorable effect upon returns.
Another development has been the evidence of tighter lending standards and
recent announcements by several financial institutions of large write-downs of
bad loans. As lending standards become more stringent, highly leveraged entities
may find their access to capital reduced. The high-yield market's discounting of
this risk is evident in the variance
THE ENTERPRISE Group of Funds, Inc.
58
<PAGE>
Enterprise High-Yield Bond Fund -- (Continued)
SUBADVISER'S COMMENTS
in returns between the quality sectors of the market. In anticipation of tighter
liquidity, investors are generally seeking investment in better-capitalized,
larger companies, which is more indicative of the double B portion of the Fund's
market.
The trend and method of calculation of defaults has been a focus of several
articles in the Wall Street Journal. Consensus on this topic lies between a
leveling of default rates to a modest up-tick. More importantly, Caywood-Scholl
believes that much of the information pertaining to defaults is priced into the
market. This explains why valuations are near historic lows, a near record
portion of the market is classified as "distressed," and why liquidity for
out-of-favor sectors is so poor.
Finally, there continues to be a great deal of dislocation in the BBB sector of
the corporate bond market, both in terms of credit quality and supply, mostly in
telecommunications companies. The difficulties of this market are in some ways
creating opportunities in the BB market, as many typical crossover buyers are
sidelined.
Future Investment Strategy
So where does all this leave us? Cautiously optimistic. Caywood-Scholl believes
the market offers very good value on risk-adjusted basis for patient investors.
Caywood-Scholl feels this is especially true of the BB sector with an average
ratio, yield/treasury, greater than 150 percent. Caywood-Scholl likens the
high-yield market to a value stock. Caywood-Scholl is uncertain as to the near
term catalyst that may cause the market to rally, but suspect s money may return
to the market when it is clear the Federal Reserve is finished raising rates. In
anticipation of this event, the U.S. may see market conditions improve in short
order. Caywood-Scholl believes that it is best to invest in higher quality
issues until there is a clear signal that the taking of risk may be rewarded.
There are specific risks associated with the types of bonds held in the
High-Yield Bond Fund, which include defaults by the issuer, market valuation,
and interest rate sensitivity.
The views expressed in this report reflect those of the subadviser only through
the end of the period of the report as stated on the cover. The subadviser's
views are subject to change at any time based on market and other conditions.
[GRAPHIC OMITTED]
www.enterprisefunds.com
THE ENTERPRISE Group of Funds, Inc.
59
<PAGE>
Enterprise High-Yield Bond Fund
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Corporate Bonds, Convertible
Securities, Common &
Preferred Stocks -- 80.80%
----------------------------------------------------------------------
Aerospace -- 0.23%
----------------------------------------------------------------------
BE Aerospace Inc. 9.50%, due
11/01/08 ............................... $250,000 $ 230,000
Apparel & Textiles -- 0.82%
----------------------------------------------------------------------
Fruit of the Loom Inc. 8.875%, due
04/15/06 (b) ........................... 500,000 40,000
Levi Strauss & Company 6.80%, due
11/01/03 ............................... 250,000 203,750
Levi Strauss & Company 7.00%, due
11/01/06 ............................... 750,000 570,000
----------
813,750
Automotive -- 2.12%
----------------------------------------------------------------------
Avis Rent a Car Inc. 11.00%, due
05/01/09 ............................... 750,000 781,875
Budget Group Inc. 9.125%, due
04/01/06 ............................... 850,000 544,000
Lear Corporation 7.96%, due
05/15/05 ............................... 400,000 375,990
Sonic Automotive Inc. (Series B)
11.00%, due 08/01/08 ................... 450,000 399,375
----------
2,101,240
Banking -- 0.95%
----------------------------------------------------------------------
Bay View Capital Corporation 9.125%,
due 08/15/07 ........................... 400,000 304,000
Western Financial Savings Bank Orange
California 8.50%, due 07/01/03 ......... 200,000 186,000
Western Financial Savings Bank Orange
California 8.875%, due 08/01/07 ........ 500,000 450,000
----------
940,000
Broadcasting -- 7.03%
----------------------------------------------------------------------
Allbritton Communications Company
(Series B) 8.875%, due 02/01/08 ........ 400,000 368,500
Chancellor Media Corporation 9.00%,
due 10/01/08 ........................... 750,000 772,500
Chancellor Media Corporation
(Series B) 8.125%, due 12/15/07 ........ 500,000 503,125
Echostar DBS Corporation 9.375%,
due 02/01/09 ........................... 1,150,000 1,104,000
Fox Family Worldwide Inc.
0%/10.25%, due 11/01/07 (c) ............ 500,000 311,250
Fox Family Worldwide Inc. 9.25%, due
11/01/07 ............................... 1,250,000 1,125,000
Fox Sports Networks LLC 0%/9.75%,
due 08/15/07 (c) ....................... 1,900,000 1,539,000
Liberty Media Group 7.875%, due
07/15/09 ............................... 650,000 625,808
Sinclair Broadcast Group Inc. 8.75%,
due 12/15/07 ........................... 700,000 616,000
----------
6,965,183
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Building & Construction -- 2.57%
----------------------------------------------------------------------
American Standard Inc. 7.375%, due
02/01/08 ............................... $ 250,000 $ 226,250
Building Materials Corporation
America (Series B) 7.75%, due
07/15/05 ............................... 600,000 493,500
Building Materials Corporation
America (Series B) 8.00%, due
10/15/07 ............................... 450,000 358,875
Integrated Electrical Services 9.375%,
due 02/01/09 ........................... 600,000 486,000
Nortek Inc. 8.875%, due 08/01/08 ......... 400,000 362,000
Nortek Inc. (Series B) 9.125%, due
09/01/07 ............................... 450,000 416,250
Republic Group Inc. 9.50%, due
07/15/08 ............................... 250,000 207,500
----------
2,550,375
Business Services -- 0.67%
----------------------------------------------------------------------
United Rentals Inc. (Series B) 8.80%,
due 08/15/08 ........................... 750,000 660,000
Cable -- 4.74%
----------------------------------------------------------------------
Adelphia Communications Corporation
9.50%, due 03/01/05 .................... 200,000 193,000
Adelphia Communications Corporation
8.375%, due 02/01/08 ................... 250,000 220,937
Adelphia Communications Corporation
7.875%, due 05/01/09 ................... 250,000 210,625
Adelphia Communications Corporation
(Series B) 10.50%, due 07/15/04 ........ 650,000 650,000
Adelphia Communications Corporation
(Series B) Zero Coupon/9.05%, due
01/15/08 (c) ........................... 600,000 246,000
Charter Communication Holdings
8.25%, due 04/01/07 .................... 1,750,000 1,544,375
Charter Communications Holdings
10.00%, due 04/01/09 ................... 250,000 241,250
Mediacom LLC/Mediacom Capital
Corporation (Series B) 8.50%, due
04/15/08 ............................... 650,000 598,000
Williams Communications Corporation
10.70%, due 10/01/07 ................... 600,000 595,500
Williams Communications Group
10.875%, due 10/01/09 .................. 200,000 195,500
----------
4,695,187
Chemicals -- 1.50%
----------------------------------------------------------------------
Georgia Gulf Corporation 10.375%,
due 11/01/07 ........................... 550,000 572,000
Huntsman Polymers Corporation
11.75%, due 12/01/04 ................... 250,000 253,750
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
60
<PAGE>
Enterprise High-Yield Bond Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Lyondell Chemical Company 9.625%,
due 05/01/07 ........................... $ 300,000 $ 295,500
Pioneer Americas Acquisition
Corporation (Series B) 9.25%, due
06/15/07 ............................... 550,000 363,000
----------
1,484,250
Communications -- 4.36%
----------------------------------------------------------------------
Globalstar LP/Globalstar Capital
11.375%, due 02/15/04 .................. 1,000,000 295,000
Globalstar LP/Globalstar Capital
11.25%, due 06/15/04 ................... 100,000 29,000
Globalstar LP/Globalstar Capital
10.75%, due 11/01/04 ................... 250,000 70,000
Globalstar LP/Globalstar Capital
11.50%, due 06/01/05 ................... $ 250,000 71,250
Globalstar Telecommunications
(Wts) (a) .............................. 700 0
Level 3 Communications Inc. 11.00%,
due 03/15/08 ........................... $ 100,000 99,000
Level 3 Communications Inc. 9.125%,
due 05/01/08 ........................... 1,000,000 897,500
Level 3 Communications Inc.
0%/10.50%, due 12/01/08 (c) ............ 550,000 334,125
Loral Space & Communication Ltd.
9.50%, due 01/15/06 .................... 350,000 253,750
Loral Space & Communication Ltd.
0%/12.50%, due 01/15/07 (c) ............ $1,450,000 594,500
Loral Space & Communication Ltd.
(Wts) (a) .............................. 850 2,816
Metromedia Fiber Network Inc.
10.00%, due 11/15/08 ................... $ 500,000 492,500
Metromedia Fiber Network Inc.
10.00%, due 12/15/09 ................... 1,000,000 985,000
Qwest Communications International
Inc. (Series B) 0%/8.29%, due
02/01/08 (c) ........................... 250,000 197,188
----------
4,321,629
Computer Software -- 2.46%
----------------------------------------------------------------------
Exodus Communications Inc. 10.75%,
due 12/15/09 ........................... 150,000 144,750
Exodus Communications Inc.
11.625%, due 07/15/10 .................. 600,000 601,500
Northpoint Commerce Group Inc.
12.875%, due 02/15/10 .................. 950,000 684,000
PSINet Inc. 10.50%, due 12/01/06 ......... 1,100,000 1,012,000
----------
2,442,250
Consumer Products -- 3.40%
----------------------------------------------------------------------
Chattem Inc. (Series B) 8.875%, due
04/01/08 ............................... 850,000 680,000
Corning Consumer Products Company
(Series B) 9.625%, due 05/01/08 ........ 400,000 260,000
French Fragrances Inc. (Series B)
10.375%, due 05/15/07 .................. 550,000 528,000
</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 $ 141,000
Scotts Company 8.625%, due
01/15/09 ............................... 900,000 864,000
Sealy Mattress Company (Series B)
0%/10.875%, due 12/15/07 (c) ........... 1,250,000 900,000
----------
3,373,000
Containers/Packaging -- 1.39%
----------------------------------------------------------------------
Owens Illinois Inc. 8.10%, due
05/15/07 ............................... 350,000 323,340
Owens Illinois Inc. 7.35%, due
05/15/08 ............................... 500,000 435,482
United States Can Corporation (Series
B) 10.125%, due 10/15/06 ............... 600,000 615,000
----------
1,373,822
Crude & Petroleum -- 0.78%
----------------------------------------------------------------------
Clark Refining & Marketing Inc.
8.875%, due 11/15/07 ................... 350,000 224,000
Trizec Hahn Corporation (Series B)
10.875%, due 12/01/05 .................. 1,000,000 550,000
----------
774,000
Drugs & Medical Products -- 1.30%
----------------------------------------------------------------------
King Pharmaceuticals Inc. 10.75%, due
02/15/09 ............................... 1,250,000 1,287,500
Electronics -- 0.10%
----------------------------------------------------------------------
Axiohm Transaction Solutions 9.75%,
due 10/01/07 (b) ....................... 500,000 101,250
Energy -- 1.86%
----------------------------------------------------------------------
Calpine Corporation 7.75%, due
04/15/09 ............................... 800,000 754,000
CMS Energy Corporation 7.50%, due
01/15/09 ............................... 250,000 218,344
Ocean Energy Inc. (Series B) 8.375%,
due 07/01/08 ........................... 900,000 873,000
----------
1,845,344
Finance -- 1.08%
----------------------------------------------------------------------
RBF Finance Company 11.00%, due
03/15/06 ............................... 1,000,000 1,071,250
Food, Beverages & Tobacco -- 3.36%
----------------------------------------------------------------------
Canandaigua Brands Inc. 8.625%, due
08/01/06 ............................... 550,000 543,125
Canandaigua Brands Inc. 8.50%, due
03/01/09 ............................... 100,000 91,000
Keebler Corporation 10.75%, due
07/01/06 ............................... 200,000 212,750
Kroger Company 6.375%, due
03/01/08 ............................... 250,000 224,698
NBTY Inc. (Series B) 8.625%, due
09/15/07 ............................... 1,000,000 852,500
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
61
<PAGE>
Enterprise High-Yield Bond Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Stater Brothers Holdings Inc. 10.75%,
due 08/15/06 ......................... $1,300,000 $1,144,000
Twin Laboratories Inc. 10.25%, due
05/15/06 ............................. 260,000 258,700
----------
3,326,773
Gaming -- 2.01%
--------------------------------------------------------------------
Boyd Gaming Corporation 9.50%, due
07/15/07 ............................. 500,000 480,000
Circus Circus Enterprises Inc. 9.25%,
due 12/01/05 ......................... 600,000 579,000
Mirage Resorts Inc. 6.75%, due
08/01/07 ............................. 450,000 400,783
Trump Atlantic City Associates
11.25%, due 05/01/06 ................. 750,000 528,750
----------
1,988,533
Health Care -- 3.96%
--------------------------------------------------------------------
Columbia/HCA Healthcare
Corporation 7.15%, due 03/30/04 ...... 250,000 234,470
Columbia/HCA Healthcare
Corporation 6.91%, due 06/15/05 ...... 600,000 548,104
Columbia/HCA Healthcare
Corporation 7.25%, due 05/20/08 ...... 250,000 222,638
Dade International Inc. (Series B)
11.125%, due 05/01/06 ................ 450,000 211,500
Fisher Scientific International Inc.
9.00%, due 02/01/08 .................. 525,000 480,375
Quest Diagnostics Inc. 10.75%, due
12/15/06 ............................. 750,000 776,250
Tenet Healthcare Corporation 8.125%,
due 12/01/08 ......................... 650,000 594,750
Tenet Healthcare Corporation 9.25%,
due 09/01/10 ......................... 850,000 856,375
----------
3,924,462
Hotels & Restaurants -- 4.08%
--------------------------------------------------------------------
Foodmaker Corporation (Series B)
9.75%, due 11/01/03 .................. 350,000 351,867
Foodmaker Inc. 8.375%, due 04/15/08..... 1,000,000 930,000
Hammon (John Q.) Hotels 8.875%,
due 02/15/04 ......................... 300,000 264,000
HMH Properties Inc. 7.875%, due
08/01/08 ............................. 250,000 224,375
Host Marriot LP 8.375%, due
02/15/06 ............................. 250,000 232,500
MGM Grand Inc. 9.75%, due
06/01/07 ............................. 1,000,000 1,017,500
Sbarro Inc. 11.00%, due 09/15/09 ....... 280,000 286,300
Station Casinos Inc. 8.875%, due
12/01/08 ............................. 250,000 238,125
Station Casinos Inc. 9.875%, due
07/01/10 ............................. 500,000 501,250
----------
4,045,917
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Machinery -- 1.55%
--------------------------------------------------------------------
Applied Power Inc. 8.75%, due
04/01/09 ............................. $ 850,000 $ 879,750
Columbus McKinnon Corporation
8.50%, due 04/01/08 .................. 500,000 430,000
Navistar International Corporation
(Series B) 8.00%, due 02/01/08 ....... 250,000 229,375
----------
1,539,125
Medical Instruments -- 0.91%
--------------------------------------------------------------------
Charles River Labs Inc. 13.50%, due
10/01/09 ............................. $ 350,000 361,375
Charles River Labs Inc. (Wts) (a) ...... 350 14,666
Fisher Scientific International Inc.
9.00%, due 02/01/08 .................. $ 575,000 526,125
----------
902,166
Medical Services -- 1.65%
--------------------------------------------------------------------
Triad Hospitals Holdings Inc. 11.00%,
due 05/15/09 ......................... 850,000 869,125
Warner Chilcott Inc. 12.625%, due
02/15/08 ............................. 750,000 769,688
----------
1,638,813
Metals & Mining -- 0.22%
--------------------------------------------------------------------
AK Steel Corporation 7.875%, due
02/15/09 ............................. 250,000 221,875
Oil Services -- 1.34%
--------------------------------------------------------------------
Eott Energy Partners L P 11.00%, due
10/01/09 ............................. 250,000 253,750
Nuevo Energy Company 9.50%, due
06/01/08 ............................. 250,000 246,875
Pioneer Natural Resources Company
9.625%, due 04/01/10 ................. 800,000 826,103
----------
1,326,728
Printing & Publishing -- 0.58%
--------------------------------------------------------------------
Nebraska Book Company Inc. 8.75%,
due 02/15/08 ......................... 750,000 577,500
Retail -- 2.20%
--------------------------------------------------------------------
Boyds Collection Ltd. 9.00%, due
05/15/08 ............................. 478,000 420,640
Buhrmann U.S. Inc. 12.25%, due
11/01/09 ............................. 600,000 630,000
Cole National Group Inc. 8.625%, due
08/15/07 ............................. 1,100,000 726,000
Saks Inc. 8.25%, due 11/15/08 .......... 450,000 398,830
----------
2,175,470
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
62
<PAGE>
Enterprise High-Yield Bond Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Telecommunications -- 12.20%
---------------------------------------------------------------------
Crown Castle International
Corporation 0%/10.625%, due
11/15/07 (c) ......................... $1,250,000 $ 925,000
Crown Castle International
Corporation 9.00%, due 05/15/11 ...... $ 500,000 461,250
E. Spire Communications Inc.
(Wts) (a) ............................ 800 0
Firstworld Communications Inc.
(Wts) (a) ............................ 500 35,221
Flag Ltd. 8.25%, due 01/30/08 .......... $ 900,000 801,000
ICG Holdings Inc. 0%/12.50%, due
05/01/06 (c) ......................... 1,000,000 827,500
ICG Services Inc. 0%/10%, due
02/15/08 (c) ......................... 200,000 104,000
Intermedia Communications Inc.
(Series B) 0%/11.25%, due
07/15/07 (c) ......................... 350,000 274,750
Intermedia Communications Inc.
(Series B) 8.50%, due 01/15/08 ....... 600,000 552,000
Leap Wireless International Inc.
12.50%, due 04/15/10 ................. 500,000 440,000
McLeodUSA Inc. 0%/10.50%, due
03/01/07 (c) ......................... 475,000 389,500
McLeodUSA Inc. 8.125%, due
02/15/09 ............................. 900,000 812,250
Nextel Communications 0%/10.65%,
due 09/15/07 (c) ..................... 1,100,000 863,500
Nextel Communications 0%/9.75%,
due 10/31/07 (c) ..................... 900,000 668,250
Nextel Communications 0%/9.95%,
due 02/15/08 (c) ..................... 650,000 476,125
Nextlink Communications 0%/9.45%,
due 04/15/08 (c) ..................... 1,100,000 671,000
Nextlink Communications 10.75%,
due 11/15/08 ......................... 900,000 886,500
Omnipoint Corporation (Series A)
11.625%, due 08/15/06 ................ $ 250,000 270,000
Pagemart (Wts) (a) ..................... 3,450 34,465
Pagemart Nationwide Inc. (Wts) (a) ..... 1,750 23,188
Panamsat Corporation 6.375%, due
01/15/08 ............................. $ 300,000 267,239
Pathnet Inc. 12.25%, due 04/15/08 ...... $ 250,000 140,000
Pathnet Inc. (Wts) (a) (d) ............. 250 0
RCN Corporation 0%/11.125%, due
10/15/07 (c) ......................... $ 350,000 218,750
RCN Corporation 10.00%, due
10/15/07 ............................. 250,000 211,875
RCN Corporation 10.125%, due
01/15/10 ............................. 200,000 166,500
RCN Corporation (Series B)
0%/9.80%, due 02/15/08 (c) ........... 550,000 313,500
Teligent Inc. 11.50%, due 12/01/07 ..... 250,000 193,750
Triton Pcs Inc. 0%/11%, due
05/01/08 (c) ......................... 250,000 181,250
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Winstar Communications Inc. 12.75%,
due 04/15/10 ......................... $ 950,000 $ 885,875
-----------
12,094,238
Textiles -- 2.52%
---------------------------------------------------------------------
Phillips Van Heusen Corporation
9.50%, due 05/01/08 .................. 1,000,000 910,000
Polymer Group Inc. (Series B) 9.00%,
due 07/01/07 ......................... 700,000 595,000
Westpoint Stevens Inc. 7.875%, due
06/15/08 ............................. 1,250,000 993,750
-----------
2,498,750
Transportation -- 0.72%
---------------------------------------------------------------------
Northwest Airlines Inc. 8.52%, due
04/07/04 ............................. 750,000 712,791
Travel/Entertainment/Leisure -- 0.24%
---------------------------------------------------------------------
International Game Technology
7.875%, due 05/15/04 ................. 250,000 240,000
Utilities -- 2.21%
---------------------------------------------------------------------
AES Corporation 9.50%, due
06/01/09 ............................. 1,050,000 1,029,000
Azurix Corporation 10.375%, due
02/15/07 ............................. 500,000 482,500
Ferrellgas Partners LP (Series B)
9.375%, due 06/15/06 ................. 450,000 432,000
Midland Cogeneration Venture LP
(Series C-91) 10.33%, due 07/23/02.... 113,999 116,707
Midland Funding Corporation (Series
C-94) 10.33%, due 07/23/02 ........... 122,752 125,667
-----------
2,185,874
Waste Management -- 1.23%
---------------------------------------------------------------------
Allied Waste North America Inc.
7.625%, due 01/01/06 ................. 650,000 568,750
Allied Waste North America Inc.
7.875%, due 01/01/09 ................. 350,000 298,375
Waste Management Inc. 6.875%, due
05/15/09 ............................. 400,000 352,527
-----------
1,219,652
Wireless Communications -- 2.46%
---------------------------------------------------------------------
Nextel Communications 9.375%, due
11/15/09 ............................. 750,000 716,250
Telecorp PCS Inc. 0%/11.625%, due
04/15/09 (c) ......................... 700,000 456,750
Voicestream Wireless Corporation
11.50%, due 09/15/09 ................. 500,000 540,000
Voicestream Wireless Corporation
10.375%, due 11/15/09 ................ 700,000 724,500
-----------
2,437,500
-----------
Total Corporate Bonds, Convertible
Securities, Common & Preferred Stocks
(Identified cost $89,449,973)............ 80,086,197
----------------------------------------- --------------
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
63
<PAGE>
Enterprise High-Yield Bond Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Foreign Bonds -- 14.00%
---------------------------------------------------------------------
Apparel & Textiles -- 0.23%
---------------------------------------------------------------------
Reliance Industries Ltd. 8.25%, due
01/15/27 ............................. $250,000 $ 232,306
Basic Industries -- 1.78%
---------------------------------------------------------------------
Cemex 12.75%, due 07/15/06 ............. 1,150,000 1,276,500
Cemex International Capital Inc.
9.66%, due 12/29/49 .................. 500,000 488,750
-----------
1,765,250
Broadcasting -- 1.17%
---------------------------------------------------------------------
Rogers Communications Inc. 9.125%,
due 01/15/06 ......................... 150,000 147,000
Rogers Communications Inc. 8.875%,
due 07/15/07 ......................... 300,000 294,000
Satelites Mexicanos 10.125%, due
11/01/04 ............................. 800,000 536,000
TV Azteca 10.50%, due 02/15/07 ......... 200,000 178,693
-----------
1,155,693
Cable -- 1.77%
---------------------------------------------------------------------
Flag Telecom Holdings Ltd. 11.625%,
due 03/30/10 ......................... 500,000 485,000
Telewest Commerce New 9.875%, due
02/01/10 ............................. 350,000 325,500
Telewest Communications New
0%/9.25%, due 04/15/09 (c) ........... 1,750,000 945,000
-----------
1,755,500
Chemicals -- 0.25%
---------------------------------------------------------------------
PCI Chemicals Canada Inc. 9.25%, due
10/15/07 ............................. 400,000 248,000
Electronics -- 0.25%
---------------------------------------------------------------------
Flextronics International Ltd. 9.875%,
due 07/01/10 ......................... 250,000 251,875
Energy -- 0.26%
---------------------------------------------------------------------
YPF Sociedad Anonima 9.125%, due
02/24/09 ............................. 250,000 253,438
Finance -- 0.48%
---------------------------------------------------------------------
PDVSA Finance Ltd. 9.375%, due
11/15/07 ............................. 500,000 479,138
Government Bond -- 3.02%
---------------------------------------------------------------------
Republic of Argentina 11.75%, due
04/07/09 ............................. 500,000 467,128
Republic of Argentina Global (Series
BGL4) 11.00%, due 10/09/06 ........... 900,000 844,625
United Mexican States 9.875%, due
01/15/07 ............................. 250,000 260,000
United Mexican States 8.625%, due
03/12/08 ............................. 600,000 576,000
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
United Mexican States 9.875%, due
02/01/10 ............................. $ 800,000 $ 840,800
-----------
2,988,553
Oil Services -- 1.61%
---------------------------------------------------------------------
Gulf Canada Resources Ltd. 8.375%,
due 11/15/05 ......................... 600,000 594,000
Gulf Canada Resources Ltd. 8.35%,
due 08/01/06 ......................... 400,000 396,000
Petroleos Mexicanos 9.375%, due
12/02/08 ............................. 600,000 609,750
-----------
1,599,750
Paper & Forest Products -- 0.46%
---------------------------------------------------------------------
Indah Kiat Finance Mauritius Ltd.
10.00%, due 07/01/07 ................. 350,000 213,500
Pindo Deli Finance Mauritius Ltd.
10.75%, due 10/01/07 ................. $ 400,000 240,000
-----------
453,500
Telecommunications -- 1.16%
---------------------------------------------------------------------
AT&T Canada Inc Deposit Receipt
(Class B) ............................ 514 17,058
Global Crossing Holdings Ltd.
9.125%, due 11/15/06 ................. $ 350,000 335,125
Rogers Cantel Inc. 8.80%, due
10/01/07 ............................. 800,000 796,000
-----------
1,148,183
Transportation -- 0.43%
---------------------------------------------------------------------
TBS Shipping International Ltd.
10.00%, due 05/01/05 (b) ............. 750,000 203,438
TFM 10.25%, due 06/15/07 ............... 250,000 221,250
-----------
424,688
Wireless Communications -- 1.13%
---------------------------------------------------------------------
Clearnet Communications Inc.
0%/10.125%, due 05/01/09 (c) ......... 1,000,000 600,000
Grupo Iusacell New 14.25%, due
12/01/06 ............................. 500,000 522,500
-----------
1,122,500
-----------
Total Foreign Bonds
(Identified cost $15,848,450)........... 13,878,374
---------------------------------------- -----------
U. S. Government Obligations -- 0.77%
---------------------------------------------------------------------
United States Treasury Note 6.625%,
due 05/31/02 ......................... 500,000 501,875
United States Treasury Note 6.50%,
due 02/15/10 ......................... 250,000 258,118
-----------
759,993
-----------
Total U. S. Government Obligations
(Identified cost $759,234)............... 759,993
----------------------------------------- -----------
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
64
<PAGE>
Enterprise High-Yield Bond Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Repurchase Agreement -- 3.14%
----------------------------------------------------------------------
State Street Bank & Trust Repurchase
Agreement 5.50%, due 07/03/00,
Maturity Value $3,119,429
Collateral: U.S. Treasury Bond
$3,050,000, 7.625% due 2/15/07
Value $3,270,968...................... $3,118,000 $ 3,118,000
-----------
Total Repurchase Agreement
(Identified cost $3,118,000)............ 3,118,000
---------------------------------------- -----------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Total Investments
(Identified cost $109,175,657).......... $97,842,564
Other Assets Less Liabilities -- 1.29% . 1,275,353
-----------
Net Assets -- 100% ..................... $99,117,917
---------------------------------------- -----------
</TABLE>
(a) Non-income producing security.
(b) In bankruptcy. Fund has ceased accrual of interest.
(c) Zero Coupon or Step Bond - The interest rate on a step bond represents the
rate of interest that will commence its accrual on a predetermined date.
The rate shown for zero coupon bonds is the current effective yield.
(d) Security is fair valued at June 30, 2000.
(Wts) Warrants - Warrants entitle the Fund to purchase a predetermined number
of shares of stock and are non-income producing. The purchase price and
number of shares are subject to adjustment under certain conditions
until the expiration date.
See notes to financial statements.
[GRAPHIC OMITTED]
www.enterprisefunds.com
THE ENTERPRISE Group of Funds, Inc.
65
<PAGE>
Enterprise Government Securities Fund
SUBADVISER'S COMMENTS
TCW Investment Management Company
Los Angeles, California
Investment Management
TCW Investment Management Company ("TCW"), a wholly owned subsidiary of TCW
Group, Inc., became subadviser of the Enterprise Government Securities Fund on
May 1, 1992. TCW Group, Inc. manages approximately $79 billion for
institutional clients, and its normal investment minimum is $100 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") 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 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 2000 Performance Review
Strong crosscurrents buffeted the fixed-income market in the first half of 2000.
Between December 31, 1999 and June 30, 2000, the long bond rallied 0.58 percent,
while the yield on the 3-month Treasury Bill rose 0.55 percent. Rates at the
short end of the curve rose on news of economic strength, which bolstered
expectations that the Federal Reserve would raise rates in the months ahead to
keep the economy from overheating. Rates at the long end of the yield curve fell
as the government began purchasing long Treasuries to reduce its outstanding
debt. As a result, the yield curve became inverted; volatility increased and
spreads widened, as it became more difficult to assess the value of bonds priced
relative to Treasuries. The yield curve inversion also complicated hedging
strategies and made it more difficult to use the 30-year Treasury as a
benchmark. Volatile equity markets also impacted bond market performance,
causing Treasuries to rally on days when equities sold off and trade lower on
days when equities moved higher.
The GNMA sub-sector was a top performer for the first six months of this year.
The return advantage of the GNMA sector so far this year has been attributed to
its superior credit quality, as the market has concerns about changes in the
federal regulations of Fannie Mae and Freddie Mac.
Future Investment Strategy
While much of the recent data on the economy has been favorable for the bond
market, it is far from conclusive. Monetary policy operates with a lag, and it
is still too early to know whether current policy has had the desired effect.
Soaring energy costs may increase the likelihood of an increase in inflationary
measures by the Federal Reserve in the near future. The likelihood of further
spread widening may be slim, with spreads still well above historic norms and
yields close to 8.00 percent. Prepayment risk may also be minimal, with the
average price of the Lehman Mortgage Index at $96.50. Therefore, TCW's outlook
on the performance potential for the mortgage sector remains positive.
Although government securities may be guaranteed as to the timely payment of
principal and interest, fund shares are not insured and their value will
fluctuate based on market conditions.
The views expressed in this report reflect those of the subadviser only through
the end of the period of the report as stated on the cover. The subadviser's
views are subject to change at any time based on market and other conditions.
THE ENTERPRISE Group of Funds, Inc.
66
<PAGE>
Enterprise Government Securities Fund
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
U.S. Government & Agency Obligations -- 82.91%
------------------------------------------------------------------------------------------------
Fannie Mae -- 26.38%
------------------------------------------------------------------------------------------------
5.50%, due 01/01/09 ......................................... $1,322,891 $1,260,844
5.50%, due 02/01/09 ......................................... 4,114,904 3,894,879
5.50%, due 02/01/09 ......................................... 2,691,762 2,555,166
6.50%, due 02/01/09 ......................................... 97,970 95,877
5.50%, due 06/01/09 ......................................... 2,692,141 2,540,096
7.00%, due 03/01/14 ......................................... 1,145,978 1,120,352
8.00%, due 11/01/16 ......................................... 1,855,079 1,868,992
6.50%, due 08/01/19 ......................................... 6,716,677 6,340,904
10.00%, due 07/01/20 ........................................ 126,336 133,675
10.00%, due 07/01/20 ........................................ 214,775 227,197
9.50%, due 08/01/20 ......................................... 450,884 466,442
9.50%, due 10/01/20 ......................................... 654,797 677,415
6.00%, due 11/01/28 ......................................... 3,703,778 3,405,331
6.00%, due 11/01/28 ......................................... 7,349,233 6,760,057
----------
31,347,227
Freddie Mac Participation Certificates -- 4.95%
------------------------------------------------------------------------------------------------
7.00%, due 09/01/17 ......................................... 1,130,182 1,103,349
7.00%, due 10/01/17 ......................................... 1,479,795 1,444,945
10.00%, due 10/01/18 ........................................ 643,681 683,299
10.00%, due 07/01/20 ........................................ 1,049,285 1,114,453
10.00%, due 10/01/20 ........................................ 438,876 464,790
9.00%, due 10/01/22 ......................................... 1,039,295 1,068,725
----------
5,879,561
Federal Housing Administration -- 13.25%
------------------------------------------------------------------------------------------------
7.75%, due 05/01/18 ......................................... 6,003,818 5,868,732
8.70%, due 12/01/27 ......................................... 2,532,723 2,558,050
7.00%, due 10/01/28 ......................................... 2,271,385 2,140,780
6.75%, due 11/01/28 ......................................... 2,172,310 2,020,249
7.18%, due 02/20/29 ......................................... 3,338,864 3,155,226
----------
15,743,037
Government National Mortgage Association -- 35.36%
------------------------------------------------------------------------------------------------
9.00%, due 08/15/16 ......................................... 3,771 3,885
7.00%, due 12/15/27 ......................................... 3,459,005 3,384,130
6.50%, due 08/15/28 ......................................... 1,380,816 1,315,124
6.50%, due 02/20/29 ......................................... 9,377,674 8,880,912
6.50%, due 05/15/29 ......................................... 4,771,695 4,536,164
7.00%, due 06/15/29 ......................................... 4,920,689 4,791,895
7.00%, due 10/15/29 ......................................... 4,968,661 4,832,660
7.00%, due 10/15/33 ......................................... 14,656,797 14,276,919
----------
42,021,689
U.S. Treasury Notes -- 2.97%
------------------------------------------------------------------------------------------------
U.S. Treasury Note 6.50%, due
08/15/05 .................................................. 3,500,000 3,537,187
----------
Total U.S. Government & Agency Obligations
(Identified cost $102,154,508)......................................... 98,528,701
----------------------------------------------------------------------- ----------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Collateralized Mortgage Obligations -- 4.43%
------------------------------------------------------------------------------------------------
Chase Mortgage Finance
Corporation 4.65%, due
05/25/28 (v) .............................................. $3,386,325 $2,121,744
Fannie Mae Series 1994-10 Class
M 6.50% Due 06/25/23 6.50%,
due 06/25/23 .............................................. 312,275 301,551
Freddie Mac Series 1552 Class YA
4.09%, due 08/15/23 (v) ................................... 1,291,553 794,305
Freddie Mac Series 1634 Class SB
8.80%, due 12/15/23 (v) ................................... 2,222,727 2,047,687
----------
Total Collateralized Mortgage Obligations
(Identified cost $5,952,691)................................. 5,265,287
------------------------------------------------------------- ----------
Corporate Bonds -- 7.67%
------------------------------------------------------------------------------------------------
PNC Mortgage Securities
Corporation 6.25%,
due 02/25/14 .............................................. 3,506,332 3,323,091
PNC Mortgage Securities
Corporation Series 1998-5
6.625%, due 06/25/13 ...................................... 1,792,148 1,727,881
Structured Asset Secs Corporation
6.75%, due 03/25/29 ....................................... 4,353,030 4,067,363
----------
9,118,335
----------
Total Corporate Bonds
(Identified cost $9,667,851)................................. 9,118,335
------------------------------------------------------------- ----------
Commercial Paper -- 4.62%
------------------------------------------------------------------------------------------------
Bell South Telecommunications
6.63%, due 07/11/00 ....................................... 100,000 99,816
General Electric Credit Capital
Service of Puerto Rico 6.70%,
due 07/07/00 .............................................. 600,000 599,330
USAA Capital Corporation
6.75%, due 07/05/00 ....................................... 2,300,000 2,298,275
Walt Disney Company 6.54%,
due 07/06/00 .............................................. 2,500,000 2,494,096
----------
Total Commercial Paper
(Identified cost $5,491,517)................................. 5,491,517
------------------------------------------------------------- ----------
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
67
<PAGE>
Enterprise Government Securities Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Repurchase Agreements -- 5.24%
--------------------------------------------------------------------------
State Street Bank & Trust
Repurchase Agreement
5.50% due 07/03/00,
Maturity Value $6,224,852
Collateral: U.S. Treasury Bond,
$6,085,000, 7.625% due
02/15/07 Value $6,525,849............... $6,222,000 $ 6,222,000
------------
Total Repurchase Agreements
(Identified cost $6,222,000).............. 6,222,000
------------------------------------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Total Investments
(Identified cost $129,488,567)........................... $124,625,840
Other Assets Less Liabilities -- (4.87)% ................ (5,789,596)
------------
Net Assets -- 100% .................................... $118,836,244
--------------------------------------------------------- ------------
</TABLE>
(v) Variable interest rate security; interest rate is as of June 30, 2000.
See notes to financial statements.
[GRAPHIC OMITTED]
www.enterprisefunds.com
THE ENTERPRISE Group of Funds, Inc.
68
<PAGE>
Enterprise Tax-Exempt Income Fund
SUBADVISER'S COMMENTS
MBIA Capital Management Corp.
Armonk, New York
Investment Management
MBIA Capital Management Corp. became the subadviser to the Enterprise
Tax-Exempt Income Fund on January 1, 1998. MBIA Capital Management Corp.
manages approximately $20 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 subadviser tries to limit risk as much as possible. The
subadviser analyzes municipalities, their credit risk, market trends and
investment cycles. The subadviser 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 subadviser 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 subadviser 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
subadviser 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 2000 Performance Review
The municipal yield curve was not immune to the forces affecting the taxable
fixed-income markets during the first half of 2000. Despite three rate hikes by
the Fed, long municipal rates fell by 0.20 percent during the period. The
municipal yield curve, although not inverting like the Treasury curve, flattened
by 0.59 percent, from 1.98 percent to 1.39 percent (1 year versus 30 years). The
Lehman Brothers Municipal Bond Index returned 4.42 percent during the first half
of 2000.1 This positive performance was largely fueled by a 22.00 percent
decrease in year-over-year supply. The insured sector was the number one
performing sector, while the long-end outperformed the general market by 2.00
percent.
The Enterprise Tax-Exempt Income Fund underperformed the Lehman Brothers
Municipal Bond Index during the first half of 2000.1 With an essentially neutral
duration for the period, the Fund's underperformance was attributable to
underweights in both the insured sector and long end of the curve, as well as
the Fund's over-concentration in defensively structured premium coupon
securities. More convex discount bonds strongly outperformed premium structures
during the latter part of the second quarter as market sentiment shifted to the
possibility that the economy could finally be slowing down and the Federal
Reserve could be nearing the end of its tightening cycle.
1 The Lehman Brothers Municipal Bond Index is an unmanaged index of
approximately 1,100 investment grade tax-exempt bonds classified into four
sectors -- general obligation, revenue, insured, and prefunded. It assumes the
reinvestment of dividends and capital gains and excludes fees and expenses. One
cannot invest directly in an index.
THE ENTERPRISE Group of Funds, Inc.
69
<PAGE>
Enterprise Tax-Exempt Income Fund -- (Continued)
SUBADVISER'S COMMENTS
Future Investment Strategy
With the possibility that the Federal Reserve could soon be finished raising
rates, combined with the continued decline in new issue supply, the near-term
technical and fundamental outlook for the municipal market looks favorable.
While MBIA will continue to emphasize conservative credit, structure and curve
allocations for the Fund, for the near-term MBIA will focus on minimizing over
and underweighted allocations versus the benchmark in order to position the Fund
to perform more in line with the general market for the balance of the year.
Depending on an investor's specific situation, distributions from this fund may,
at times, be subject to ordinary income, alternative minimum and capital gains
taxes. State and local taxes may apply.
The views expressed in this report reflect those of the subadviser only through
the end of the period of the report as stated on the cover. The subadviser's
views are subject to change at any time based on market and other conditions.
[GRAPHIC OMITTED]
www.enterprisefunds.com
THE ENTERPRISE Group of Funds, Inc.
70
<PAGE>
Enterprise Tax-Exempt Income Fund
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Municipal Bonds -- 98.93%
------------------------------------------------------------------
Alabama -- 0.92%
------------------------------------------------------------------
Alabama Housing Finance Authority
Single Family Mortgage Revenue
Home Mortgage GNMA Collateral
Series A-1 6.55% due 10/01/14 ......... $ 240,000 $ 248,287
Colorado -- 7.42%
------------------------------------------------------------------
Colorado Department Transport
Revenue Anticipation Notes
(AMBAC Insured) 6.00% due
06/15/15 .............................. 1,000,000 1,039,520
Colorado Springs Colorado Sales &
Use Tax Revenue Bonds 5.00% due
12/01/12 .............................. 1,000,000 959,110
----------
1,998,630
Georgia -- 7.59%
------------------------------------------------------------------
Atlanta Downtown Development
Authority Underground Atlanta
Project 6.25% due 10/01/12 ............ 500,000 521,325
Georgia Municipal Electric Authority
Power Revenue Series V 6.30% due
01/01/05 .............................. 400,000 423,128
Georgia State General Obligation
Bonds Series C 6.25% due 08/01/12 1,000,000 1,098,560
----------
2,043,013
Iowa -- 3.27%
------------------------------------------------------------------
Iowa Finance Authority Hospital
Facility Revenue Iowa Health
Systems Series A (MBIA Insured)
5.125% due 01/01/28 ................... 1,000,000 880,380
Massachusetts -- 2.90%
------------------------------------------------------------------
Massachusetts State Housing Finance
Agency Revenue Residential FNMA
Collateral-Series A 6.90% due
11/15/24 .............................. 750,000 780,990
Michigan -- 10.88%
------------------------------------------------------------------
Michigan Municipal Bond Authority
Revenue Clean Water Revolving
Fund 5.75% due 10/01/16 ............... 1,000,000 1,016,460
Michigan State Building Authority
Revenue Series I 6.40% due
10/01/04 .............................. 1,000,000 1,039,590
Wayne Charter County Michigan
Airport Revenue Detroit
Metropolitan Wayne Charter
County Airport Series B (MBIA
Insured) 5.00% due 12/01/28 ........... 1,000,000 873,240
----------
2,929,290
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Minnesota -- 3.79%
------------------------------------------------------------------
Minnesota State General Obligation
Bonds 5.60% due 10/01/02 .............. $1,000,000 $1,020,300
Missouri -- 7.47%
-------------------------------------------------------------------
Kansas City Missouri Municipal
Assistance Corporation Refunding
Leasehold Roe Bartle Series A
(MBIA Insured) 5.00% due
04/15/04 .............................. 1,000,000 1,006,760
Missouri State Health & Educational
Facilities Authority St. Louis
University 5.50% due 10/01/15 ......... 1,000,000 1,002,760
----------
2,009,520
Nebraska -- 3.73%
------------------------------------------------------------------
Omaha Public Power District
Nebraska Electric Revenue Series D
5.10% due 02/01/08 .................... 1,000,000 1,004,320
Nevada -- 3.20%
------------------------------------------------------------------
Clark County School District Series A
(MBIA Insured) 7.00% due
06/01/11 .............................. 750,000 860,287
New Jersey -- 2.97%
------------------------------------------------------------------
New Jersey State Refunding Series F
5.25% due 08/01/13 .................... 800,000 798,968
New York -- 4.32%
------------------------------------------------------------------
Municipal Assistance Corporation
New York Series J 5.75% due
07/01/03 .............................. 300,000 308,679
Triborough Bridge & Tunnel
Authority, New York General
Purpose Series A 6.00% due
01/01/10 .............................. 800,000 855,096
----------
1,163,775
Ohio -- 3.77%
------------------------------------------------------------------
Ohio State Building Authority
Refunding James A Rhodes Office
A 5.25% due 06/01/10 .................. 1,000,000 1,014,910
Oklahoma -- 5.68%
------------------------------------------------------------------
Tulsa, Oklahoma General Obligation
Bonds 6.30% due 06/01/17 .............. 1,500,000 1,528,260
South Carolina -- 4.51%
------------------------------------------------------------------
South Carolina State Public Service
Authority Series A (MBIA Insured)
5.75% due 01/01/15 .................... 1,200,000 1,214,520
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
71
<PAGE>
Enterprise Tax-Exempt Income Fund -- (Continued)
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Texas -- 17.93%
----------------------------------------------------------------------
Harris County Texas Health Facilities
Development Christus Health Series
A (MBIA Insured) 5.75% due
07/01/14 ............................... $1,000,000 $ 1,011,620
San Antonio Texas Electric & Gas
Revenue Refunding Series A 5.25%
due 02/01/13 ........................... 500,000 493,470
San Antonio Texas Independent
School District (Public School
Fund-Guaranteed Insured) 5.125%
due 08/15/22 ........................... 1,000,000 905,940
Texas State Refunding Public Finance
Authority 5.50% due 10/01/06 ........... 1,000,000 1,033,290
Texas State Department Housing
Community Affairs Home
Mortgage Revenue GNMA
Collateral Series A 6.95% due
07/01/23 ............................... 345,000 356,958
Texas Tech University Revenues
Refunding & Improvement
Financing Systems 3rd Series
(AMBAC Insured) 5.375% due
02/15/17 ............................... 1,000,000 1,024,960
-----------
4,826,238
Utah -- 3.44%
----------------------------------------------------------------------
Utah County Utah Hospital Revenue
IHC Health Services Inc. (MBIA
Insured) 5.25% due 08/15/21 ............ 1,000,000 926,490
Washington -- 2.03%
----------------------------------------------------------------------
Washington State General Obligation
Bonds Series B & AT-7 6.40% due
06/01/17 ............................... 500,000 545,860
Wisconsin -- 3.11%
----------------------------------------------------------------------
Milwaukee Wisconsin Series F 6.00%
due 11/15/04 ........................... 800,000 837,576
-----------
Total Municipal Bonds
(Identified Cost $26,831,077) ............. 26,631,614
------------------------------------------- -----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Short-Term Tax-Exempt Investments -- 1.12%
----------------------------------------------------------------------
Texas -- 1.12%
----------------------------------------------------------------------
Gulf Coast Texas Waste Disposal
Authority Adjusted Refunding
Amoco Oil Company Project
resets 7/03/00 4.05% (v) ............... $ 200,000 $ 200,000
Gulf Coast Texas Waste Disposal
Authority Adjusted Refunding
Amoco Oil Company Project
resets 7/03/00 4.30% (v) ............... 100,000 100,000
-----------
300,000
-----------
Total Short-Term Tax-Exempt
Investments
(Identified Cost $300,000) ............... 300,000
------------------------------------------ -----------
Total Investments
(Identified cost $27,131,077) ............ $26,931,614
Other Assets Less Liabilities -- (0.05)% . (12,398)
-----------
Net Assets -- 100% ....................... $26,919,216
------------------------------------------ -----------
</TABLE>
(AMBAC) American Bond Assurance Corporation.
(MBIA) Municipal Bond Insurance Association.
(v) Variable interest rate demand security; Interest rate is as of June 30,
2000, and is adjusted daily. Maturity date shown is the later of the next
reset date or next put at par.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
72
<PAGE>
Enterprise Money Market Fund
MANAGER'S COMMENTS
Enterprise Capital Management, Inc.
Atlanta, Georgia
Investment Management
Enterprise Capital Management, Inc. ("ECM"), 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 been Fund Manager to 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 2000 Performance Review
The first half proved to be a very difficult one in which to navigate as an
investor. Fixed-income markets adjusted to the much anticipated May 16, 0.5
percent increase in the Federal Reserve's overnight federal funds rate and, for
a time, priced in a further interest rate move at the June 27-28 Federal Reserve
meeting. Short-term money market rates moved up substantially in the beginning
of May. Subsequently, the short-term yield curve steepened dramatically.
As the first half ended, increasing evidence of economic softening began to
mount. The impact of the Federal Reserve's six interest rate increases over the
past year, totaling 1.75 percent, seems to have been felt initially in the
interest rate sensitive sectors like housing and autos. Nevertheless, the pace
of economic growth, while below the torrid 5.5 percent real GDP growth rate seen
in the first quarter, may be too robust to keep the Federal Reserve on hold. The
question at hand is whether the Federal Reserve's series of interest rate hikes
has slowed the economy's pace to a level consistent with the Federal Reserve's
perceived target real GDP growth level of roughly 3.5 percent. The bond and
money markets are betting that the Federal Reserve's regimen has done so. Thus,
the bond market clearly views the Federal Reserve's work to dampen inflationary
pressures as done or almost done.
The first quarter, ECM believes, was buoyed by favorable weather and a snapback
from Y2K-related issues in the second half of 1999. The second quarter pullback
only looks slow relative to the first quarter's vibrant pace. Volatility in the
equity markets, particularly in Nasdaq and technology-related stocks, also
contributed to the recent slowdown. Corporate earnings remain strong.
The average maturity of the Enterprise Money Market Fund was lengthened during
the second quarter to capitalize on the increased level of interest rates. As
market sentiment has shifted in June, bringing down interest rates markedly out
through one year, ECM has shortened the Fund's average maturity in the belief
that opportunities to extend into longer maturing and higher yielding
investments lie ahead. ECM believes that the Federal Reserve's reading of the
second quarter real GDP may compel the Federal Reserve to again hike rates. The
Federal Reserve continues to express concern over the economy's strength and
potential for supply/demand imbalances leading to inflationary pressure.
THE ENTERPRISE Group of Funds, Inc.
73
<PAGE>
Enterprise Money Market Fund -- (Continued)
MANAGER'S COMMENTS
Future Investment Strategy
Going forward, the average maturity of the Fund may be adjusted selectively to
capitalize on opportunities where the Fund will be rewarded for duration
extension. Presently, the yield curve in the money market is fairly flat, out
through the six-month area, so there is little yield sacrifice in maintaining a
short average maturity in the Fund. The average maturity of the Fund at June 30
was 33.5 days.
The Fund continues to be invested in high quality short-term instruments,
principally commercial paper. The 30-day and 7-day simple yields of the Fund
were 6.07 percent and 6.15 percent, respectively, as of June 30, 2000. (Past
performance is no guarantee of future results)
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 Fund
Manager's views are subject to change at any time based on market and other
conditions.
[GRAPHIC OMITTED]
www.enterprisefunds.com
THE ENTERPRISE Group of Funds, Inc.
74
<PAGE>
Enterprise Money Market Fund
PORTFOLIO OF INVESTMENTS (UNAUDITED)
June 30, 2000
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Commercial Paper -- 96.69%
------------------------------------------------------------------------
American Express Credit Corporation,
6.56% due 07/18/00 .................. $7,909,000 $ 7,884,500
Associates First Capital Corporation,
6.53% due 07/24/00 .................. 9,246,000 9,207,426
CIT Group Inc.
6.95% due 07/03/00 .................. 10,668,000 10,663,881
Citicorp
6.54% due 07/20/00 .................. 10,500,000 10,463,758
Coca Cola Enterprises Inc.
6.52% due 08/01/00 .................. 9,334,000 9,281,595
Colonial Pipeline Company
6.60% due 08/02/00 .................. 3,754,000 3,731,977
Colonial Pipeline Company
6.60% due 08/10/00 .................. 4,045,000 4,015,337
Countrywide Funding Corporation
6.85% due 07/14/00 .................. 5,000,000 4,987,632
Countrywide Home Loans Inc.
6.58% due 07/13/00 .................. 6,004,000 5,990,831
Dominion Resources Inc.
6.83% due 07/20/00 .................. 2,000,000 1,992,791
Enterprise Funding Corporation
6.57% due 07/26/00 .................. 10,772,000 10,722,853
Ford Motor Credit Company
6.62% due 09/13/00 .................. 10,000,000 9,863,922
General Electric Capital Corporation,
6.53% due 07/19/00 .................. 10,866,000 10,830,523
General Motors Acceptance
Corporation, 6.68% due 09/05/00 ..... 9,082,000 8,970,776
Golden Funding Corporation
6.60% due 07/05/00 .................. 9,750,000 9,742,850
Goldman Sachs Group
6.64% due 08/07/00 .................. 6,000,000 5,959,053
GTE Corporation
6.60% due 07/11/00 .................. 7,500,000 7,486,250
GTE Corporation
6.60% due 07/27/00 .................. 3,757,000 3,739,092
Heller Financial Inc.
6.62% due 07/17/00 .................. 4,000,000 3,988,231
Heller International Corporation
6.65% due 08/03/00 .................. 3,393,000 3,372,317
Household Finance Corporation
6.25% due 07/26/00 .................. 10,000,000 9,956,597
Houston Industries Finance Company,
6.92% due 07/20/00 .................. 2,000,000 1,992,696
Montauk Funding Corporation
6.63% due 08/25/00 .................. 9,144,000 9,051,379
Norfolk Southern Corporation
6.85% due 07/12/00 .................. 2,000,000 1,995,814
Paccar Financial Corporation
6.05% due 08/01/00 .................. 8,000,000 7,958,322
Royal Bank of Canada New York
6.11% due 07/05/00 .................. 811,000 810,449
Sony Capital Corporation
6.62% due 07/07/00 .................. 10,000,000 9,988,967
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares
or Principal
Amount Value
<S> <C> <C>
Target Corporation
6.60% due 07/06/00 .................. $3,000,000 $ 2,997,250
Target Corporation
6.58% due 07/07/00 .................. 7,378,000 7,369,909
Textron Financial Corporation
6.67% due 07/07/00 .................. 5,149,000 5,143,276
Textron Financial Corporation
6.55% due 07/27/00 .................. 2,000,000 1,990,539
Trident Capital Finance Inc.
6.57% due 08/10/00 .................. 10,000,000 9,927,000
TRW Inc.
6.77% due 07/20/00 .................. 2,000,000 1,992,854
Windmill Funding Corporation
6.55% due 07/19/00 .................. 10,000,000 9,967,250
-------------
Total Commercial Paper
(Identified cost $224,037,894)......................... 224,037,894
------------------------------------------------------- ----------------
U. S. Government Obligations -- 3.45%
------------------------------------------------------------------------
Federal Home Loan Banks
6.60% due 02/22/01 .................. 2,750,000 2,748,835
Federal Home Loan Banks
6.75% due 03/01/01 .................. 5,250,000 5,250,000
-------------
Total U. S. Government Obligations
(Identified cost $7,998,835)........................... 7,998,835
------------------------------------------------------- ----------------
Certificates of Deposit -- 2.59%
------------------------------------------------------------------------
Union Bank Treasury Division
5.99% due 09/15/00 .................. 6,000,000 6,000,000
Total Certificates of Deposit
(Identified cost $6,000,000)........................... 6,000,000
------------------------------------------------------- ----------------
Variable Rate Securities -- 4.49%
------------------------------------------------------------------------
Capital One Funding Corporation
6.20% due 03/01/17 (v) .............. 1,418,000 1,418,000
Goldman Sachs Group
6.406% due 04/11/08 (v) ............. 4,000,000 4,000,000
Syndicated Loan Funding Trust
6.28% due 03/15/01 (v) .............. 5,000,000 5,000,000
-------------
Total Variable Rate Securities
(Identified cost $10,418,000).......................... 10,418,000
------------------------------------------------------- ----------------
Total Investments
(Identified cost $248,454,729)......................... $ 248,454,729
Other Assets Less Liabilities -- (7.22)% .............. (16,740,799)
-------------
Net Assets -- 100% .................................... $ 231,713,930
------------------------------------------------------- ----------------
</TABLE>
(v) Variable rate security; Interest rate shown is rate as of June 30, 2000.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
75
<PAGE>
Statements of Assets and Liabilities (Unaudited)
In 000's (except per share information)
June 30, 2000
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
Small Small
Multi-Cap Fund Fund
Growth Fund Company Company
------------- Growth Value
<S> <C> <C> <C>
Assets:
Investments at value $ 256,023 $ 84,385 $ 315,064
Foreign currency at value (cost -- $1,390
and $167) -- -- --
Receivable for fund shares sold 1,501 411 2,030
Receivable for investments sold 3,374 -- 569
Dividends and interest receivable 20 2 230
Due from investment adviser 39 30 --
Cash and other assets 115 26 21
Total assets $ 261,072 $ 84,854 $ 317,914
------------------------------------------------ ---------- -------- ---------
Liabilities:
Payable for fund shares redeemed 929 111 1,509
Call options written, at market value
(premiums received $22) -- -- --
Payable for investments purchased 6,961 181 8,090
Dividends and distributions payable -- -- --
Investment advisory fees payable 204 67 187
Distribution fees payable 155 45 179
Forward currency contracts (net) payable -- -- --
Accrued expenses and other liabilities 164 61 183
Total liabilities $ 8,413 $ 465 $ 10,148
------------------------------------------------ ---------- -------- ---------
Net assets $ 252,659 $ 84,389 $ 307,766
Analysis of net assets
Paid-in capital 258,897 69,058 283,358
Undistributed (accumulated) net investment
income (loss) (1,580) (562) (559)
Undistributed (accumulated) net realized gain
(loss) on investments (21,903) 3,196 24,362
Unrealized appreciation (depreciation) on
investments and foreign currency
denominated amounts 17,245 12,697 605
Net assets $ 252,659 $ 84,389 $ 307,766
------------------------------------------------ ---------- -------- ---------
Class A: Net assets $ 106,351 $ 32,323 $ 153,665
Shares outstanding 8,280 960 17,777
Net asset value and redemption price per share $ 12.84 $ 33.67 $ 8.64
Maximum sales charge per share $ 0.64 $ 1.68 $ 0.43
Maximum offering price per share, including
sales charge of 4.75% $ 13.48 $ 35.35 $ 9.07
------------------------------------------------ ---------- -------- ---------
Class B: Net assets $ 105,517 $ 34,775 $ 106,811
Shares outstanding 8,259 1,055 12,784
Net asset value and offering price per share $ 12.78 $ 32.96 $ 8.35
------------------------------------------------ ---------- -------- ---------
Class C: Net assets $ 40,000 $ 8,311 $ 45,938
Shares outstanding 3,132 251 5,381
Net asset value and offering price per share $ 12.77 $ 33.07 $ 8.54
------------------------------------------------ ---------- -------- ---------
Class Y: Net assets $ 791 $ 8,980 $ 1,352
Shares outstanding 61 263 153
Net asset value, offering and redemption price
per share $ 12.89 $ 34.08 $ 8.86
------------------------------------------------ ---------- -------- ---------
Investments at cost $ 238,778 $ 71,687 $ 314,459
<CAPTION>
GROWTH
Capital Growth
Appreciation and Income
Growth Fund Fund Equity Fund Fund
------------- ------------- ------------- -----------
<S> <C> <C> <C> <C>
Assets:
Investments at value $2,397,931 $286,551 $54,971 $225,147
Foreign currency at value (cost -- $1,390
and $167) -- -- -- --
Receivable for fund shares sold 20,816 1,541 2,395 1,366
Receivable for investments sold 18,563 5,655 -- 303
Dividends and interest receivable 961 93 2 60
Due from investment adviser -- -- 7 45
Cash and other assets 57 64 42 96
Total assets $2,438,328 $293,904 $57,417 $227,017
------------------------------------------------ ---------- -------- ------- --------
Liabilities:
Payable for fund shares redeemed 6,954 515 144 711
Call options written, at market value
(premiums received $22) -- -- -- 40
Payable for investments purchased 31,848 1,485 207 1,174
Dividends and distributions payable -- -- -- --
Investment advisory fees payable 1,444 173 30 136
Distribution fees payable 1,326 145 30 130
Forward currency contracts (net) payable -- -- -- --
Accrued expenses and other liabilities 922 138 53 119
Total liabilities $ 42,494 $ 2,456 $ 464 $ 2,310
------------------------------------------------ ---------- -------- ------- --------
Net assets $2,395,834 $291,448 $56,953 $224,707
Analysis of net assets
Paid-in capital 1,880,598 251,559 49,027 169,561
Undistributed (accumulated) net investment
income (loss) (8,958) (1,153) (188) (224)
Undistributed (accumulated) net realized gain
(loss) on investments 221,476 7,143 1,118 (335)
Unrealized appreciation (depreciation) on
investments and foreign currency
denominated amounts 302,718 33,899 6,996 55,705
Net assets $2,395,834 $291,448 $56,953 $224,707
------------------------------------------------ ---------- -------- ------- --------
Class A: Net assets $1,190,829 $194,478 $23,764 $ 84,396
Shares outstanding 52,024 5,166 2,825 2,080
Net asset value and redemption price per share $ 22.89 $ 37.64 $ 8.41 $ 40.58
Maximum sales charge per share $ 1.14 $ 1.88 $ 0.42 $ 2.02
Maximum offering price per share, including
sales charge of 4.75% $ 24.03 $ 39.52 $ 8.83 $ 42.60
------------------------------------------------ ---------- -------- ------- --------
Class B: Net assets $ 807,701 $ 73,034 $25,216 $105,146
Shares outstanding 36,456 2,037 3,044 2,622
Net asset value and offering price per share $ 22.16 $ 35.85 $ 8.28 $ 40.10
------------------------------------------------ ---------- -------- ------- --------
Class C: Net assets $ 306,444 $ 23,366 $ 7,703 $ 17,892
Shares outstanding 13,653 634 929 446
Net asset value and offering price per share $ 22.45 $ 36.86 $ 8.29 $ 40.14
------------------------------------------------ ---------- -------- ------- --------
Class Y: Net assets $ 90,860 $ 570 $ 270 $ 17,273
Shares outstanding 3,875 15 32 421
Net asset value, offering and redemption price
per share $ 23.45 $ 38.24 $ 8.43 $ 41.05
------------------------------------------------ ---------- -------- ------- --------
Investments at cost $2,095,213 $252,652 $47,975 $169,424
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
76
<PAGE>
<TABLE>
<CAPTION>
SECTOR DOMESTIC HYBRID
Equity Income International Internet Services Fund Managed Balanced
Fund Growth Fund Fund Global Fund Fund
-------------- -------------- ------------ Financial ------------- ------------
<S> <C> <C> <C> <C> <C>
$ 139,709 $113,691 $ 412,829 $ 25,026 $ 294,187 $ 12,943
-- 1,392 -- 166 -- --
202 1,206 2,793 33 274 28
934 1,196 14,034 -- 3,120 --
191 131 19 47 689 71
1 -- -- 10 -- --
138 63 267 18 50 37
$ 141,175 $117,679 $ 429,942 $ 25,300 298,320 $ 13,079
---------- -------- ---------- ---------- --------- --------
318 812 2,452 377 667 11
-- -- -- -- -- --
308 741 6,114 42 522 107
-- -- -- -- -- --
89 80 339 18 187 8
74 49 259 12 146 8
-- 818 -- 2 -- --
88 102 271 32 205 19
$ 877 $ 2,602 $ 9,435 $ 483 $ 1,727 $ 153
---------- -------- ---------- ---------- --------- --------
$ 140,298 $115,077 $ 420,507 $ 24,817 $ 296,593 $ 12,926
113,957 99,339 409,503 25,719 276,588 12,445
54 (279) (3,694) 113 979 36
6,138 5,084 (35,302) 44 5,446 91
20,149 10,933 50,000 (1,059) 13,580 354
$ 140,298 $115,077 $ 420,507 $ 24,817 $ 296,593 $ 12,926
---------- -------- ---------- ---------- --------- --------
$ 94,707 $ 55,818 $ 176,905 $ 11,469 $ 111,680 $ 6,062
3,733 2,691 6,323 2,156 13,966 1,151
$ 25.37 $ 20.74 $ 27.98 $ 5.32 $ 8.00 $ 5.27
$ 1.27 $ 1.03 $ 1.40 $ 0.27 $ 0.40 $ 0.26
$ 26.64 $ 21.77 $ 29.38 $ 5.59 $ 8.40 $ 5.53
---------- -------- ---------- ---------- --------- --------
$ 37,821 $ 27,472 $ 180,695 $ 7,025 $ 116,564 $ 5,591
1,513 1,353 6,484 1,330 14,790 1,064
$ 25.00 $ 20.30 $ 27.87 $ 5.28 $ 7.88 $ 5.25
---------- -------- ---------- ---------- --------- --------
$ 7,651 $ 7,725 $ 61,796 $ 1,040 $ 7,820 $ 1,166
304 377 2,220 197 993 222
$ 25.16 $ 20.47 $ 27.84 $ 5.28 $ 7.88 $ 5.26
---------- -------- ---------- ---------- --------- --------
$ 119 $ 24,062 $ 1,111 $ 5,283 $ 60,529 $ 107
5 1,159 39 989 7,565 20
$ 25.35 $ 20.76 $ 28.13 $ 5.34 $ 8.00 $ 5.28
---------- -------- ---------- ---------- --------- --------
$ 119,560 $101,950 $ 362,829 $ 26,082 $ 280,607 $ 12,589
<CAPTION>
FIXED INCOME
Equity Income High-Yield Government Tax-Exempt Money Market
Fund Bond Fund Securities Fund Income Fund Fund
-------------- ------------ ----------------- ------------- --------------
<S> <C> <C> <C> <C>
$ 139,709 $ 97,843 $ 124,626 $ 26,932 $ 248,455
-- -- -- -- --
202 361 645 -- 3,605
934 360 -- -- --
191 2,178 733 449 546
1 8 2 4 --
138 24 25 118 358
$ 141,175 $ 100,774 $ 126,031 $ 27,503 $ 252,964
---------- ---------- ---------- --------- -----------
318 141 554 524 21,019
-- -- -- -- --
308 1,202 6,373 -- --
-- 146 78 22 31
89 48 58 11 68
74 53 59 13 --
-- -- -- -- --
88 66 73 14 132
$ 877 $ 1,656 $ 7,195 $ 584 $ 21,250
---------- ---------- ---------- --------- -----------
$ 140,298 $ 99,118 $ 118,836 $ 26,919 $ 231,714
113,957 114,798 127,445 27,238 231,714
54 -- (85) -- --
6,138 (4,347) (3,661) (120) --
20,149 (11,333) (4,863) (199) --
$ 140,298 $ 99,118 $ 118,836 $ 26,919 $ 231,714
---------- ---------- ---------- --------- -----------
$ 94,707 $ 57,568 $ 70,160 $ 20,263 $ 199,184
3,733 5,520 6,047 1,558 199,184
$ 25.37 $ 10.43 $ 11.60 $ 13.01 $ 1.00
$ 1.27 $ 0.52 $ 0.58 $ 0.65 --
$ 26.64 $ 10.95 $ 12.18 $ 13.66 $ 1.00
---------- ---------- ---------- --------- -----------
$ 37,821 $ 33,068 $ 34,837 $ 5,437 $ 21,833
1,513 3,171 3,004 418 21,833
$ 25.00 $ 10.43 $ 11.60 $ 13.01 $ 1.00
---------- ---------- ---------- --------- -----------
$ 7,651 $ 7,326 $ 6,760 $ 1,173 $ 8,191
304 702 583 90 8,191
$ 25.16 $ 10.43 $ 11.60 $ 13.01 $ 1.00
---------- ---------- ---------- --------- -----------
$ 119 $ 1,156 $ 7,079 $ 46 $ 2,506
5 111 610 4 2,506
$ 25.35 $ 10.43 $ 11.60 $ 13.01 $ 1.00
---------- ---------- ---------- --------- -----------
$ 119,560 $ 109,176 $ 129,489 $ 27,131 $ 248,455
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
77
<PAGE>
------------- -------
Statements of Operations (Unaudited)
In 000's
For the Six Months Ended June 30, 2000
------------- -------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
Multi-Cap Small Small
Growth Company Company
Fund Growth Fund Value Fund
--------------- ------------- -------------
<S> <C> <C> <C>
Investment income:
Dividends $ 95(1) $ 57 $ 1,476
Interest 511 134 581
Total investment income 606 191 2,057
Expenses:
Investment Advisory fees 1,016 365 1,063
Distribution fees, Class A 202 62 317
Distribution fees, Class B 412 145 504
Distribution fees, Class C 150 35 205
Transfer agent fees 387 161 405
Custodian and accounting fees 33 18 42
Audit and legal fees 9 3 14
Reports to shareholders 20 4 18
Registration fees 36 16 27
Directors' fees 3 2 3
Other expenses 30 6 18
Total expenses 2,298 817 2,616
Less: Expense reimbursement (112) (64) --
Total expenses, net of reimbursement 2,186 753 2,616
Net investment income (loss) (1,580) (562) (559)
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) on security transactions (21,782) 3,196 24,800
Net realized gain (loss) on foreign currency
transactions -- -- --
Net change in unrealized gain (loss) on
investments and foreign currency related
transactions (8,996) (4,093) (15,325)
Net realized and unrealized gain (loss) on
investments (30,778) (897) 9,475
Increase (decrease) in net assets resulting from
operations $ (32,358) $ (1,459) $ 8,916
<CAPTION>
GROWTH
Capital Growth
Growth Fund Equity and Income
Fund Appreciation Fund Fund
------------- ------------ --------- ----------
<S> <C> <C> <C> <C>
Investment income:
Dividends $ 7,987 $ 358(1) $ 36 $ 900(1)
Interest 2,433 643 85 592
Total investment income 10,420 1,001 121 1,492
Expenses:
Investment Advisory fees 8,861 956 121 733
Distribution fees, Class A 2,692 406 29 166
Distribution fees, Class B 3,920 287 79 446
Distribution fees, Class C 1,470 82 16 78
Transfer agent fees 1,849 306 81 250
Custodian and accounting fees 175 31 11 34
Audit and legal fees 114 15 2 11
Reports to shareholders 143 17 2 13
Registration fees 64 21 18 23
Directors' fees 17 3 1 2
Other expenses 73 30 5 15
Total expenses 19,378 2,154 365 1,771
Less: Expense reimbursement -- -- (56) (55)
Total expenses, net of reimbursement 19,378 2,154 309 1,716
Net investment income (loss) (8,958) (1,153) (188) (224)
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) on security transactions 221,458 7,134 1,118 562
Net realized gain (loss) on foreign currency
transactions -- -- -- --
Net change in unrealized gain (loss) on
investments and foreign currency related
transactions (303,652) (21,534) 4,289 10,495
Net realized and unrealized gain (loss) on
investments (82,194) (14,400) 5,407 11,057
Increase (decrease) in net assets resulting from
operations $(91,152) $(15,553) $5,219 $10,833
</TABLE>
(1) Net of foreign taxes withheld of $2 for Multi-Cap Growth, $4 for Capital
Appreciation, $9 for Growth and Income, $113 for International Growth, $3
for Internet Fund, $16 for Global Financial Services and $12 for Managed.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
78
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECTOR
Equity Global
Income International Internet Financial
Fund Growth Fund Fund Services Fund
------------ -------------- --------------- ---------------
<S> <C> <C> <C>
$ 1,573 $ 636(1) $ 56(1) $ 276(1)
136 152 578 11
1,709 788 634 287
548 473 1,976 81
222 123 383 16
197 128 830 29
40 34 288 4
182 179 635 54
27 87 49 28
6 7 28 1
8 7 37 1
20 20 45 16
2 2 4 1
11 7 53 1
1,263 1,067 4,328 232
(29) -- -- (58)
1,234 1,067 4,328 174
475 (279) (3,694) 113
6,172 6,412 (35,170) 75
-- (1,196) -- --
(14,114) (18,427) (35,487) (777)
(7,942) (13,211) (70,657) (702)
$ (7,467) $(13,490) $ (74,351) $ (589)
<CAPTION>
DOMESTIC HYBRID FIXED INCOME
Equity Government Tax-Exempt Money
Income Managed Balanced High-Yield Securities Income Market
Fund Fund Fund Bond Fund Fund Fund Fund
------------ --------------- --------- ------------ ------------ ------------ ---------
<S> <C> <C> <C> <C> <C> <C>
$ 1,573 $ 2,099(1) $ 26 $ -- $ -- $ -- $ --
136 1,532 140 5,091 4,063 749 7,393
1,709 3,631 166 5,091 4,063 749 7,393
548 1,208 43 299 346 69 417
222 270 12 133 154 46 --
197 632 25 168 172 27 --
40 43 5 30 29 7 --
182 397 38 129 149 29 173
27 60 12 33 25 11 53
6 13 1 5 5 2 15
8 21 1 5 6 1 10
20 21 27 19 21 18 29
2 3 1 2 1 1 2
11 9 1 1 1 1 27
1,263 2,677 166 824 909 212 726
(29) (25) (69) (69) (64) (41) --
1,234 2,652 97 755 845 171 726
475 979 69 4,336 3,218 578 6,667
6,172 5,488 137 (526) 183 (53) --
-- -- -- -- -- -- --
(14,114) (18,439) (206) (4,735) 131 440 --
(7,942) (12,951) (69) (5,261) 314 387 --
$ (7,467) $(11,972) $ -- $ (925) $ 3,532 $ 965 $ 6,667
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
79
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
------------- -------
Statements of Changes in Net Assets
In 000's
------------- -------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
Multi-Cap Growth Fund Small Company Growth Fund
----------------------------------- -----------------------------------
(Unaudited) For the Period (Unaudited)
Six Months July 1, 1999 Six Months
Ended through Ended Year Ended
June 30, 2000 December 31, 1999 June 30, 2000 December 31, 1999
--------------- ------------------- --------------- -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss) $ (1,580) $ (238) $ (562) $ (511)
Net realized gain (loss) on investments (21,782) 1,564 3,196 5,587
Net change in unrealized gain (loss) on
investments (8,996) 26,241 (4,093) 10,394
Increase (decrease) in net assets resulting
from operations (32,358) 27,567 (1,459) 15,470
Distributions to shareholders from:
Net investment income, Class A -- -- -- --
Net investment income, Class B -- -- -- --
Net investment income, Class C -- -- -- --
Net investment income, Class Y -- -- -- --
Net realized gains on investments Class A -- (699) (201) --
Net realized gains on investments Class B -- (558) (220) --
Net realized gains on investments Class C -- (188) (54) --
Net realized gains on investments Class Y -- (10) (67) --
Total distributions to shareholders -- (1,455) (542) --
From capital share transactions:
Class A
Shares sold 82,504 37,544 24,592 10,575
Reinvestment of distributions -- 604 194 --
Shares redeemed (12,171) (2,271) (10,792) (5,073)
Net increase (decrease) -- Class A 70,333 35,877 13,994 5,502
Class B
Shares sold 84,807 31,400 18,480 9,475
Reinvestment of distributions -- 531 210 --
Shares redeemed (5,611) (1,263) (2,569) (4,006)
Net increase (decrease) -- Class B 79,196 30,668 16,121 5,469
Class C
Shares sold 35,873 10,925 5,667 2,588
Reinvestment of distributions -- 170 51 --
Shares redeemed (4,172) (510) (1,728) (1,754)
Net increase (decrease) -- Class C 31,701 10,585 3,990 834
Class Y
Shares sold 358 414 262 701
Reinvestment of distributions -- 5 65 --
Shares redeemed (137) (95) (814) (3,724)
Net increase (decrease) -- Class Y 221 324 (487) (3,023)
Total increase (decrease) in net assets
resulting from capital share transactions 181,451 77,454 33,618 8,783
Total increase (decrease) in net assets 149,093 103,566 31,617 24,253
Net assets:
Beginning of period $ 103,566 -- $ 52,772 $ 28,519
End of period $ 252,659 $ 103,566 $ 84,389 $ 52,772
<CAPTION>
AGGRESSIVE GROWTH
Small Company Value Fund
----------------------------------
(Unaudited)
Six Months
Ended Year Ended
June 30, 2000 December 31, 1999
--------------- ------------------
<S> <C> <C>
From operations:
Net investment income (loss) $ (559) $ (1,023)
Net realized gain (loss) on investments 24,800 24,209
Net change in unrealized gain (loss) on
investments (15,325) 7,926
Increase (decrease) in net assets resulting
from operations 8,916 31,112
Distributions to shareholders from:
Net investment income, Class A -- --
Net investment income, Class B -- --
Net investment income, Class C -- --
Net investment income, Class Y -- --
Net realized gains on investments Class A (2,468) (9,465)
Net realized gains on investments Class B (1,838) (7,114)
Net realized gains on investments Class C (742) (2,450)
Net realized gains on investments Class Y (12) (43)
Total distributions to shareholders (5,060) (19,072)
From capital share transactions:
Class A
Shares sold 112,925 140,610
Reinvestment of distributions 2,392 9,106
Shares redeemed (99,119) (100,724)
Net increase (decrease) -- Class A 16,198 48,992
Class B
Shares sold 19,660 42,381
Reinvestment of distributions 1,739 6,768
Shares redeemed (14,149) (16,938)
Net increase (decrease) -- Class B 7,250 32,211
Class C
Shares sold 14,772 24,608
Reinvestment of distributions 710 2,374
Shares redeemed (5,299) (7,268)
Net increase (decrease) -- Class C 10,183 19,714
Class Y
Shares sold 861 479
Reinvestment of distributions 11 42
Shares redeemed (171) (212)
Net increase (decrease) -- Class Y 701 309
Total increase (decrease) in net assets
resulting from capital share transactions 34,332 101,226
Total increase (decrease) in net assets 38,188 113,266
Net assets:
Beginning of period $ 269,578 $ 156,312
End of period $ 307,766 $ 269,578
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
80
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH
Growth Fund Capital Appreciation Fund Equity Fund
----------------------------- ----------------------------- ------------------------------
(Unaudited) (Unaudited) (Unaudited)
Six Months Year Ended Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31, Ended December 31,
June 30, 2000 1999 June 30, 2000 1999 June 30, 2000 1999
--------------- ------------- --------------- ------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
$ (8,958) $ (14,345) $ (1,153) $ (2,024) $ (188) $ (87)
221,458 218,277 7,134 68,737 1,118 1,246
(303,652) 197,229 (21,534) (5,096) 4,289 1,855
(91,152) 401,161 (15,553) 61,617 5,219 3,014
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
(40,364) (54,863) (26,101) (22,921) (134) (325)
(27,232) (36,606) (8,998) (5,142) (180) (471)
(10,104) (12,983) (2,522) (772) (35) (86)
(2,955) (3,698) (67) (54) (2) (7)
(80,655) (108,150) (37,688) (28,889) (351) (889)
716,941 870,657 125,462 121,862 16,160 3,567
40,708 52,321 25,397 22,394 111 260
(749,199) (643,435) (100,036) (122,472) (2,628) (3,272)
8,450 279,543 50,823 21,784 13,643 555
111,144 320,748 43,781 22,942 13,948 4,958
26,138 35,162 8,543 4,906 172 447
(82,630) (81,632) (7,235) (6,679) (2,662) (3,805)
54,652 274,278 45,089 21,169 11,458 1,600
65,331 157,558 20,611 7,217 5,318 1,438
9,806 12,661 2,295 750 34 85
(41,886) (39,027) (3,209) (2,478) (321) (1,053)
33,251 131,192 19,697 5,489 5,031 470
21,619 33,005 240 223 108 95
2,550 3,068 51 36 2 4
(14,118) (20,734) (65) (87) (32) (7)
10,051 15,339 226 172 78 92
106,404 700,352 115,835 48,614 30,210 2,717
(65,403) 993,363 62,594 81,342 35,078 4,842
$2,461,237 $1,467,874 $ 228,854 $ 147,512 $21,875 $17,033
$2,395,834 $2,461,237 $ 291,448 $ 228,854 $56,953 $21,875
<CAPTION>
GROWTH
Growth and Income Fund Equity Income Fund
----------------------------- -----------------------------
(Unaudited) (Unaudited)
Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31,
June 30, 2000 1999 June 30, 2000 1999
--------------- ------------- --------------- -------------
<S> <C> <C> <C>
$ (224) $ (201) $ 475 $ 981
562 (876) 6,172 10,223
10,495 33,686 (14,114) (847)
10,833 32,609 (7,467) 10,357
-- -- (416) (798)
-- -- (64) (100)
-- -- (14) (19)
-- -- (1) (2)
-- (9) (3,139) (4,358)
-- (11) (1,277) (1,790)
-- (2) (248) (365)
-- (2) (4) (6)
-- (24) (5,163) (7,438)
39,408 62,503 13,234 17,162
-- 10 3,388 4,959
(24,868) (25,578) (24,868) (24,691)
14,540 36,935 (8,246) (2,570)
32,550 47,072 4,298 18,022
-- 10 1,257 1,755
(6,984) (7,451) (8,877) (9,228)
25,566 39,631 (3,322) 10,549
6,127 11,350 2,409 8,577
-- 2 254 369
(2,781) (4,665) (3,604) (5,257)
3,346 6,687 (941) 3,689
473 2,262 4 54
-- 2 1 2
(1,232) (8,439) (28) (16)
(759) (6,175) (23) 40
42,693 77,078 (12,532) 11,708
53,526 109,663 (25,162) 14,627
$ 171,181 $ 61,518 $165,460 $150,833
$ 224,707 $171,181 $140,298 $165,460
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
81
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
------------- -------
Statements of Changes in Net Assets -- (Continued)
In 000's
------------- -------
<TABLE>
<CAPTION>
SECTOR
International Growth Fund Internet Fund
----------------------------- -----------------------------------
(Unaudited) (Unaudited) For the period
Six Months Year Ended Six Months July 1, 1999
Ended December 31, Ended through
June 30, 2000 1999 June 30, 2000 December 31, 1999
--------------- ------------- --------------- -------------------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss) $ (279) $ (479) $ (3,694) $ (640)
Net realized gain (loss) on
investments 5,216 9,737 (35,170) 4,380
Net change in unrealized gain
(loss) on investments (18,427) 20,167 (35,487) 85,487
Increase (decrease) in net assets
resulting from operations (13,490) 29,425 (74,351) 89,227
Distributions to shareholders from:
Net investment income, Class A -- (331) -- --
Net investment income, Class B -- (54) -- --
Net investment income, Class C -- (15) -- --
Net investment income, Class Y -- (183) -- --
Net realized gains on investments
Class A (532) (4,599) (554) (1,170)
Net realized gains on investments
Class B (261) (1,967) (549) (1,071)
Net realized gains on investments
Class C (68) (482) (190) (320)
Net realized gains on investments
Class Y (241) (1,609) (5) (13)
Total distributions to shareholders (1,102) (9,240) (1,298) (2,574)
From capital share transactions:
Class A
Shares sold 61,578 34,759 136,577 84,619
Reinvestment of distributions 582 4,677 520 1,119
Shares redeemed (54,833) (36,525) (47,475) (7,333)
Net increase (decrease) -- Class A 7,327 2,911 89,622 78,405
Class B
Shares sold 9,785 7,602 128,768 79,696
Reinvestment of distributions 250 1,923 511 1,002
Shares redeemed (2,427) (6,438) (24,380) (8,394)
Net increase (decrease) -- Class B 7,608 3,087 104,899 72,304
Class C
Shares sold 7,575 2,607 47,937 27,379
Reinvestment of distributions 59 434 174 295
Shares redeemed (4,770) (1,843) (9,690) (2,329)
Net increase (decrease) -- Class C 2,864 1,198 38,421 25,345
Class Y
Shares sold 17,112 13,693 646 1,193
Reinvestment of distributions 241 1,791 4 10
Shares redeemed (10,894) (11,797) (724) (622)
Net increase (decrease) -- Class Y 6,459 3,687 (74) 581
Total increase (decrease) in net assets
resulting from capital share
transactions 24,258 10,883 232,868 176,635
Total increase (decrease) in net assets 9,666 31,068 157,219 263,288
Net assets:
Beginning of period $105,411 $ 74,343 $ 263,288 --
End of period $115,077 $105,411 $ 420,507 $ 263,288
<CAPTION>
SECTOR DOMESTIC HYBRID
Global Financial
Services Fund Managed Fund
----------------------------- -----------------------------
(Unaudited) (Unaudited)
Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31,
June 30, 2000 1999 June 30, 2000 1999
--------------- ------------- --------------- -------------
<S> <C> <C> <C> <C>
From operations:
Net investment income (loss) $ 113 $ 146 $ 979 $ 1,929
Net realized gain (loss) on
investments 75 318 5,488 56,228
Net change in unrealized gain
(loss) on investments (777) (1,447) (18,439) (30,267)
Increase (decrease) in net assets
resulting from operations (589) (983) (11,972) 27,890
Distributions to shareholders from:
Net investment income, Class A -- (36) -- (920)
Net investment income, Class B -- (20) -- (124)
Net investment income, Class C -- (3) -- (3)
Net investment income, Class Y -- (60) -- (910)
Net realized gains on investments
Class A (20) (103) (10,877) (11,937)
Net realized gains on investments
Class B (16) (98) (11,675) (12,420)
Net realized gains on investments
Class C (2) (14) (810) (839)
Net realized gains on investments
Class Y (15) (116) (6,241) (6,607)
Total distributions to shareholders (53) (450) (29,603) (33,760)
From capital share transactions:
Class A
Shares sold 12,594 6,298 8,033 31,330
Reinvestment of distributions 19 132 10,404 12,248
Shares redeemed (6,198) (2,180) (35,885) (72,080)
Net increase (decrease) -- Class A 6,415 4,250 (17,448) (28,502)
Class B
Shares sold 4,239 5,143 7,101 27,934
Reinvestment of distributions 16 103 11,288 12,099
Shares redeemed (1,656) (1,186) (34,358) (49,962)
Net increase (decrease) -- Class B 2,599 4,060 (15,969) (9,929)
Class C
Shares sold 716 944 1,434 4,393
Reinvestment of distributions 2 18 798 824
Shares redeemed (354) (382) (3,231) (6,780)
Net increase (decrease) -- Class C 364 580 (999) (1,563)
Class Y
Shares sold 67 99 2,548 15,926
Reinvestment of distributions 15 175 6,241 7,514
Shares redeemed (36) (60) (20,869) (30,285)
Net increase (decrease) -- Class Y 46 214 (12,080) (6,845)
Total increase (decrease) in net assets
resulting from capital share
transactions 9,424 9,104 (46,496) (46,839)
Total increase (decrease) in net assets 8,782 7,671 (88,071) (52,709)
Net assets:
Beginning of period $ 16,035 $ 8,364 $384,664 $437,373
End of period $ 24,817 $ 16,035 $296,593 $384,664
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
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<PAGE>
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--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIXED INCOME
Balanced Fund High-Yield Bond Fund Government Securities Fund
----------------------------------- ------------------------------- -----------------------------
(Unaudited) For the period (Unaudited) (Unaudited)
Six Months July 1, 1999 Six Months Year Ended Six Months Year Ended
Ended through Ended December 31, Ended December 31,
June 30, 2000 December 31, 1999 June 30, 2000 1999 June 30, 2000 1999
--------------- ------------------- --------------- --------------- --------------- -------------
<S> <C> <C> <C> <C> <C>
$ 69 $ 33 $ 4,336 $ 9,320 $ 3,218 $ 6,251
137 63 (526) (3,788) 183 (72)
(206) 560 (4,735) (1,697) 131 (5,620)
-- 656 (925) 3,835 3,532 559
(19) (19) (2,630) (5,789) (1,974) (4,034)
(11) (11) (1,399) (2,883) (895) (1,590)
(2) (2) (254) (479) (149) (215)
(1) (1) (53) (169) (200) (412)
(50) (1) -- (51) -- --
(47) (1) -- (28) -- --
(9) -- -- (4) -- --
(1) -- -- (2) -- --
(140) (35) (4,336) (9,405) (3,218) (6,251)
3,155 4,807 6,331 17,107 33,293 51,982
56 16 1,988 4,491 1,581 3,209
(2,027) (174) (11,666) (26,854) (38,609) (49,540)
1,184 4,649 (3,347) (5,256) (3,735) 5,651
1,998 4,339 4,073 13,268 5,729 20,568
55 11 1,035 2,208 732 1,326
(806) (213) (6,947) (12,493) (8,571) (10,576)
1,247 4,137 (1,839) 2,983 (2,110) 11,318
533 704 2,976 6,128 3,252 5,123
10 1 201 387 126 208
(74) (48) (2,379) (4,750) (2,160) (2,678)
469 657 798 1,765 1,218 2,653
1 101 44 288 898 661
-- -- 53 169 200 411
-- -- (61) (1,204) (259) (1,805)
1 101 36 (747) 839 (733)
2,901 9,544 (4,352) (1,255) (3,788) 18,889
2,761 10,165 (9,613) (6,825) (3,474) 13,197
$10,165 -- $ 108,731 $ 115,556 $ 122,310 $ 109,113
$12,926 $10,165 $ 99,118 $ 108,731 $ 118,836 $ 122,310
<CAPTION>
FIXED INCOME
Tax-Exempt Income Fund Money Market Fund
------------------------------- ------------------------------
(Unaudited) (Unaudited)
Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31,
June 30, 2000 1999 June 30, 2000 1999
--------------- --------------- --------------- --------------
<S> <C> <C> <C>
$ 578 $ 1,154 $ 6,667 $ 9,341
(53) 54 -- --
440 (2,078) -- --
965 (870) 6,667 9,341
(444) (932) (5,730) (7,901)
(106) (174) (662) (951)
(27) (44) (208) (335)
(1) (3) (67) (154)
-- (173) -- --
-- (41) -- --
-- (13) -- --
-- (1) -- --
(578) (1,381) (6,667) (9,341)
2,004 12,602 904,626 902,291
347 848 5,257 7,523
(4,079) (13,709) (915,102) (845,901)
(1,728) (259) (5,219) 63,913
1,069 3,335 29,394 63,367
75 172 599 893
(1,428) (1,927) (41,023) (41,545)
(284) 1,580 (11,030) 22,715
101 1,572 19,515 27,978
26 52 190 285
(677) (587) (18,810) (25,647)
(550) 1,037 895 2,616
-- -- 145 1,315
-- 1 63 149
(16) -- (1,179) (1,399)
(16) 1 (971) 65
(2,578) 2,359 (16,325) 89,309
(2,191) 108 (16,325) 89,309
$ 29,110 $ 29,002 $ 248,039 $ 158,730
$ 26,919 $ 29,110 $ 231,714 $ 248,039
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
83
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--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
Enterprise Multi-Cap Growth Fund
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) For the Period
Six Months Ended 7/1/99
Enterprise Multi-Cap Growth Fund (Class A) June 30, 2000 through 12/31/99
--------------------------------------------------------------------------------------- ----------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 13.74 $ 5.00
-------- ---------
Net Investment Income (Loss) (0.09)(F) (0.05)(F)
Net Realized and Unrealized Gain (Loss) on Investments (0.81) 9.00
-------- ---------
Total from Investment Operations (0.90) 8.95
-------- ---------
Dividends from Net Investment Income -- --
Distributions from Capital Gains -- (0.21)
-------- ---------
Total Distributions -- (0.21)
-------- ---------
Net Asset Value End of Period $ 12.84 $ 13.74
======== =========
Total ReturnC (6.55)%(B) 179.26%(B)
Net Assets End of Period (in thousands) $106,351 $ 49,206
Ratio of Expenses to Average Net Assets 1.85%(A) 1.85%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 1.95%(A) 2.43%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.26)%(A) (1.06)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Reimbursement) (1.36)%(A) (1.64)%(A)
Portfolio Turnover Rate 43% 32%
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) For the Period
Six Months Ended 7/1/99
Enterprise Multi-Cap Growth Fund (Class B) June 30, 2000 through 12/31/99
--------------------------------------------------------------------------------------- ----------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 13.70 $ 5.00
-------- ---------
Net Investment Income (Loss) (0.12)(F) (0.07)(F)
Net Realized and Unrealized Gain (Loss) on Investments (0.80) 8.98
-------- ---------
Total from Investment Operations (0.92) 8.91
-------- ---------
Dividends from Net Investment Income -- --
Distributions from Capital Gains -- (0.21)
-------- ---------
Total Distributions -- (0.21)
-------- ---------
Net Asset Value End of Period $ 12.78 $ 13.70
======== =========
Total ReturnD (6.71)%(B) 178.45%(B)
Net Assets End of Period (in thousands) $105,517 $ 39,854
Ratio of Expenses to Average Net Assets 2.40%(A) 2.40%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 2.51%(A) 2.90%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.80)%(A) (1.64)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Reimbursement) (1.92)%(A) (2.14)%(A)
Portfolio Turnover Rate 43% 32%
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
84
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--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
Enterprise Multi-Cap Growth Fund -- (Continued)
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) For the Period
Six Months Ended 7/1/99
Enterprise Multi-Cap Growth Fund (Class C) June 30, 2000 through 12/31/99
--------------------------------------------------------------------------------------- ----------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 13.70 $ 5.00
-------- ---------
Net Investment Income (Loss) (0.12)(F) (0.07)(F)
Net Realized and Unrealized Gain (Loss) on Investments (0.81) 8.98
-------- ---------
Total from Investment Operations (0.93) 8.91
-------- ---------
Dividends from Net Investment Income -- --
Distributions from Capital Gains -- (0.21)
-------- ---------
Total Distributions -- (0.21)
-------- ---------
Net Asset Value End of Period $ 12.77 $ 13.70
======== =========
Total Return(D) (6.79)%(B) 178.46%(B)
Net Assets End of Period (in thousands) $ 40,000 $ 13,864
Ratio of Expenses to Average Net Assets 2.40%(A) 2.40%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 2.52%(A) 2.92%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.80)%(A) (1.62)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Reimbursement) (1.92)%(A) (2.14)%(A)
Portfolio Turnover Rate 43% 32%
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) For the Period
Six Months Ended 7/1/99
Enterprise Multi-Cap Growth Fund (Class Y) June 30, 2000 through 12/31/99
--------------------------------------------------------------------------------------- ----------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 13.76 $ 5.00
-------- ---------
Net Investment Income (Loss) (0.06)(F) (0.02)(F)
Net Realized and Unrealized Gain (Loss) on Investments (0.81) 8.99
-------- ---------
Total from Investment Operations (0.87) 8.97
-------- ---------
Dividends from Net Investment Income -- --
Distributions from Capital Gains -- (0.21)
-------- ---------
Total Distributions -- (0.21)
-------- ---------
Net Asset Value End of Period $ 12.89 $ 13.76
======== =========
Total Return (6.32)%(B) 179.66%(B)
Net Assets End of Period (in thousands) $ 791 $ 641
Ratio of Expenses to Average Net Assets 1.40%(A) 1.40%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 1.48%(A) 2.42%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.82)%(A) (0.51)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Reimbursement) (0.89)%(A) (1.54)%(A)
Portfolio Turnover Rate 43% 32%
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
85
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--------------------------------------------------------------------------------
<PAGE>
Enterprise Small Company Growth Fund
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period From For the Period
Enterprise Small Company Growth Fund Six Months Ended ------------------------ 10/1/97 7/17/97
(Class A) June 30, 2000 1999 1998 through 12/31/97 through 9/30/97
------------------------------------------- ----------------- ------------ ----------- -------------------- ----------------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 33.26 $ 22.44 $ 23.39 $ 26.61 $ 24.54
-------- ------- ------- --------- --------
Net Investment Income (Loss) (0.23)(F) (0.35)(F) (0.32)(F) (0.40) (0.05)
Net Realized and Unrealized Gain (Loss) on
Investments 0.89 11.17 (0.63) (2.27) 2.12
-------- ------- ------- --------- --------
Total from Investment Operations 0.66 10.82 (0.95) (2.67) 2.07
-------- ------- ------- --------- --------
Dividends from Net Investment Income -- -- -- -- --
Distributions from Capital Gains (0.25) -- -- (0.55) --
-------- ------- ------- --------- --------
Total Distributions (0.25) -- -- (0.55) --
-------- ------- ------- --------- --------
Net Asset Value End of Period $ 33.67 $ 33.26 $ 22.44 $ 23.39 $ 26.61
======== ======= ======= ========= ========
Total Return(C) 1.88%B 48.22% (4.06)% (10.04)%(B) 8.44%(B)
Net Assets End of Period (in thousands) $ 32,323 $19,024 $ 8,194 $ 4,861 $ 2,102
Ratio of Expenses to Average Net Assets 1.85%(A) 1.85% 1.85% 1.85%(A) 1.85%(A)
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 2.03%(A) 2.29% 2.66% 2.38%(A) 4.48%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.33)%(A) (1.38)% (1.43)% (1.56)%(A) (1.61)%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) (1.51)%(A) (1.82)% (2.24)% (2.09)%(A) (4.25)%(A)
Portfolio Turnover Rate 29% 62% 151% 24%(A) 158%(A)
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period From For the Period
Enterprise Small Company Growth Fund Six Months Ended ------------------------ 10/1/97 7/17/97
(Class B) June 30, 2000 1999 1998 through 12/31/97 through 9/30/97
------------------------------------------- ----------------- ------------ ----------- -------------------- ----------------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 32.62 $ 22.13 $ 23.33 $ 26.58 $ 24.54
-------- ------- ------- --------- --------
Net Investment Income (Loss) (0.32)(F) (0.48)(F) (0.41)(F) (0.47) (0.05)
Net Realized and Unrealized Gain (Loss) on
Investments 0.91 10.97 (0.79) (2.23) 2.09
-------- ------- ------- --------- --------
Total from Investment Operations 0.59 10.49 (1.20) (2.70) 2.04
-------- ------- ------- --------- --------
Dividends from Net Investment Income -- -- -- -- --
Distributions from Capital Gains (0.25) -- -- (0.55) --
-------- ------- ------- --------- --------
Total Distributions (0.25) -- -- (0.55) --
-------- ------- ------- --------- --------
Net Asset Value End of Period $ 32.96 $ 32.62 $ 22.13 $ 23.33 $ 26.58
======== ======= ======= ========= ========
Total Return(D) 1.70%(B) 47.40% (5.14)% (10.16)%(B) 8.31%(B)
Net Assets End of Period (in thousands) $ 34,775 $19,798 $ 8,760 $ 2,842 $ 1,099
Ratio of Expenses to Average Net Assets 2.40%(A) 2.40% 2.40% 2.40%(A) 2.40%(A)
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 2.58%(A) 2.84% 3.24% 2.93%(A) 5.52%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.88)%(A) (1.93)% (1.94)% (2.11)%(A) (2.18)%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) (2.06)%(A) (2.37)% (2.78)% (2.64)%(A) (5.29)%(A)
Portfolio Turnover Rate 29% 62% 151% 24%(A) 158%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
86
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--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
Enterprise Small Company Growth Fund -- (Continued)
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period For the Period
Enterprise Small Company Six Months Ended ----------------------- 10/1/97 7/17/97
Growth Fund (Class C) June 30, 2000 1999 1998 through 12/31/97 through 9/30/97
------------------------------------------- ----------------- ----------- ----------- ------------------ ----------------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 32.73 $ 22.21 $ 23.32 $ 26.57 $ 24.54
-------- ------- ------- --------- --------
Net Investment Income (Loss) (0.32)(F) (0.47)(F) (0.41)(F) (0.62) (0.07)
Net Realized and Unrealized Gain (Loss) on
Investments 0.91 10.99 (0.70) (2.08) 2.10
-------- ------- ------- --------- --------
Total from Investment Operations 0.59 10.52 (1.11) (2.70) 2.03
-------- ------- ------- --------- --------
Dividends from Net Investment Income -- -- -- -- --
Distributions from Capital Gains (0.25) -- -- (0.55) --
-------- ------- ------- --------- --------
Total Distributions (0.25) -- -- (0.55) --
-------- ------- ------- --------- --------
Net Asset Value End of Period $ 33.07 $ 32.73 $ 22.21 $ 23.32 $ 26.57
======== ======= ======= ========= ========
Total Return(D) 1.70%(B) 47.37% (4.76)% (10.16)%(B) 8.27%(B)
Net Assets End of Period (in thousands) $ 8,311 $ 4,654 $ 2,481 $ 795 $ 201
Ratio of Expenses to Average Net Assets 2.40%(A) 2.40% 2.40% 2.40%(A) 2.40%(A)
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 2.58%(A) 2.84% 3.24% 2.93%(A) 5.91%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.87)%(A) (1.93)% (1.93)% (2.11)%(A) (2.15)%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) (2.05)%(A) (2.37)% (2.77)% (2.64)%(A) (5.65)%(A)
Portfolio Turnover Rate 29% 62% 151% 24%(A) 158%(A)
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31,
Enterprise Small Company Six Months Ended -----------------------
Growth Fund (Class Y) June 30, 2000 1999 1998
----------------------------------------- ---------------- ----------- -----------
<S> <C> <C> <C>
Net Asset Value Beginning of Period $ 33.56 $ 22.55 $ 23.43
--------- -------- --------
Net Investment Income (Loss) (0.15)(F) (0.23)(F) (0.23)(F)
Net Realized and Unrealized Gain (Loss)
on Investments 0.92 11.24 (0.65)
--------- -------- --------
Total from Investment Operations 0.77 11.01 (0.88)
--------- -------- --------
Dividends from Net Investment Income -- -- --
Distributions from Capital Gains (0.25) -- --
--------- -------- --------
Total Distributions (0.25) -- --
--------- -------- --------
Net Asset Value End of Period $ 34.08 $ 33.56 $ 22.55
========= ======== ========
Total Return 2.20%(B) 48.82% (3.76)%
Net Assets End of Period (in thousands) $ 8,980 $ 9,296 $ 9,084
Ratio of Expenses to Average Net Assets 1.40%(A) 1.40% 1.40%
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 1.55%(A) 1.84% 2.15%
Ratio of Net Investment Income (Loss) to
Average Net Assets (0.87)%(A) (0.93)% (1.03)%
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) (1.02)%(A) (1.37)% (1.78)%
Portfolio Turnover Rate 29% 62% 151%
<CAPTION>
For the Period
10/1/97 Year Year Year
Enterprise Small Company through Ended Ended Ended
Growth Fund (Class Y) 12/31/97 9/30/97 9/30/96 9/30/95
----------------------------------------- --------------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 26.62 $ 25.08 $ 19.05 $ 14.01
--------- ------- -------- --------
Net Investment Income (Loss) (0.07) (0.13) (0.17) (0.12)
Net Realized and Unrealized Gain (Loss)
on Investments (2.57) 3.73 7.62 5.49
--------- ------- -------- --------
Total from Investment Operations (2.64) 3.60 7.45 5.37
--------- ------- -------- --------
Dividends from Net Investment Income -- -- -- --
Distributions from Capital Gains (0.55) (2.06) (1.42) (0.33)
--------- ------- -------- --------
Total Distributions (0.55) (2.06) (1.42) (0.33)
--------- ------- -------- --------
Net Asset Value End of Period $ 23.43 $ 26.62 $ 25.08 $ 19.05
========= ======= ======== ========
Total Return (9.92)%(B) 16.24% 42.07% 39.20%
Net Assets End of Period (in thousands) $ 13,540 $15,355 $ 6,609 $ 2,950
Ratio of Expenses to Average Net Assets 1.40%(A) 1.84% 1.96% 1.85%
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 1.96%(A) 3.08% 3.46% 5.15%
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.12)%(A) (1.30)% (1.43)% (1.33)%
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) (1.68)%(A) (2.54)% (2.93)% (4.63)%
Portfolio Turnover Rate 24%(A) 158% 78% 84%
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
87
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--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
Enterprise Small Company Value Fund
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited)
Enterprise Small Company Value Fund Six Months Ended
(Class A) June 30, 2000
----------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 8.53
--------
Net Investment Income (Loss) (0.01)(F)
Net Realized and Unrealized Gain (Loss) on
Investments 0.27
--------
Total from Investment Operations 0.26
--------
Dividends from Net Investment Income --
Distributions from Capital Gains (0.15)
--------
Total Distributions (0.15)
--------
Net Asset Value End of Period $ 8.64
========
Total Return(C) 3.07%(B)
Net Assets End of Period (in thousands) $153,665
Ratio of Expenses to Average Net Assets 1.57%(A)
Ratio of Expenses to Average Net Assets (Excluding
Reimbursement) 1.57%(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 Reimbursement) (0.12)%(A)
Portfolio Turnover Rate 36%
<CAPTION>
Year Ended December 31,
----------------------------------------------------------------
Enterprise Small Company Value Fund
(Class A) 1999 1998 1997 1996 1995
----------------------------------------------------- ------------- ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 7.92 $ 7.75 $ 5.74 $ 5.43 $ 5.17
------- ------- ------- ------- -------
Net Investment Income (Loss) (0.02)(F) (0.03)(F) 0.01 (0.01) 0.02
Net Realized and Unrealized Gain (Loss) on
Investments 1.28 0.42 2.53 0.62 0.46
------- ------- ------- ------- -------
Total from Investment Operations 1.26 0.39 2.54 0.61 0.48
------- ------- ------- ------- -------
Dividends from Net Investment Income -- -- -- -- (0.02)
Distributions from Capital Gains (0.65) (0.22) (0.53) (0.30) (0.20)
------- ------- ------- ------- -------
Total Distributions (0.65) (0.22) (0.53) (0.30) (0.22)
------- ------- ------- ------- -------
Net Asset Value End of Period $ 8.53 $ 7.92 $ 7.75 $ 5.74 $ 5.43
======= ======= ======= ======= =======
Total Return(C) 16.13% 5.15% 44.24% 11.28% 9.29%
Net Assets End of Period (in thousands) $135,222 $79,867 $45,310 $17,308 $19,720
Ratio of Expenses to Average Net Assets 1.63% 1.75% 1.75% 1.75% 1.75%
Ratio of Expenses to Average Net Assets (Excluding
Reimbursement) 1.63% 1.85% 1.95% 2.38% 2.21%
Ratio of Net Investment Income (Loss) to Average Net
Assets (0.22)% (0.37)% 0.05% (0.13)% 0.32%
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Reimbursement) (0.22)% (0.48)% (0.15)% (0.76)% (0.14)%
Portfolio Turnover Rate 46% 33% 63% 144% 37%
</TABLE>
<TABLE>
<CAPTION>
(Unaudited)
Enterprise Small Company Value Fund Six Months Ended
(Class B) June 30, 2000 Year Ended December 31,
------------------------------------------- ----------------- ------------------------------------------------
1999 1998 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 8.27 $ 7.74 $ 7.63 $ 5.69 $ 5.41
-------- ------- ------- ------- --------
Net Investment Income (Loss) (0.03)(F) (0.06)(F) (0.07)(F) -- (0.03)
Net Realized and Unrealized Gain (Loss) on
Investments 0.26 1.24 0.40 2.47 0.61
-------- ------- ------- ------- --------
Total from Investment Operations 0.23 1.18 0.33 2.47 0.58
-------- ------- ------- ------- --------
Dividends from Net Investment Income -- -- -- -- --
Distributions from Capital Gains (0.15) (0.65) (0.22) (0.53) (0.30)
-------- ------- ------- ------- --------
Total Distributions (0.15) (0.65) (0.22) (0.53) (0.30)
-------- ------- ------- ------- --------
Net Asset Value End of Period $ 8.35 $ 8.27 $ 7.74 $ 7.63 $ 5.69
======== ======= ======= ======= ========
Total Return(D) 2.80%(B) 15.47% 4.44% 43.40% 10.77%
Net Assets End of Period (in thousands) $106,811 $98,472 $61,929 $22,013 $ 2,606
Ratio of Expenses to Average Net Assets 2.12%(A) 2.18% 2.30% 2.30% 2.30%
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 2.12%(A) 2.18% 2.41% 2.44% 2.92%
Ratio of Net Investment Income (Loss) to
Average Net Assets (0.67)%(A) (0.78)% (0.93)% (0.67)% (0.77)%
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) (0.67)%(A) (0.78)% (1.04)% (0.81)% (1.39)%
Portfolio Turnover Rate 36% 46% 33% 63% 144%
<CAPTION>
For the Period
Enterprise Small Company Value Fund 5/1/95
(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 ReturnD 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 Reimbursement) 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
Reimbursement) (0.90)%(A)
Portfolio Turnover Rate 37%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
88
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--------------------------------------------------------------------------------
<PAGE>
Enterprise Small Company Value Fund -- (Continued)
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period
Six Months Ended ------------------------- 5/1/97
Enterprise Small Company Value Fund (Class C) June 30, 2000 1999 1998 through 12/31/97
------------------------------------------------------------------- ----------------- ------------ ------------ -----------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 8.45 $ 7.90 $ 7.74 $ 6.14
-------- ------- ------- --------
Net Investment Income (Loss) (0.03)(F) (0.06)(F) (0.07)(F) (0.02)
Net Realized and Unrealized Gain (Loss) on Investments 0.27 1.26 0.45 2.15
-------- ------- ------- --------
Total from Investment Operations 0.24 1.20 0.38 2.13
-------- ------- ------- --------
Dividends from Net Investment Income -- -- -- --
Distributions from Capital Gains (0.15) (0.65) (0.22) (0.53)
-------- ------- ------- --------
Total Distributions (0.15) (0.65) (0.22) (0.53)
-------- ------- ------- --------
Net Asset Value End of Period $ 8.54 $ 8.45 $ 7.90 $ 7.74
======== ======= ======= ========
Total Return(D) 2.86%(B) 15.42% 5.03% 34.68%(B)
Net Assets End of Period (in thousands) $ 45,938 $35,265 $14,239 $ 2,684
Ratio of Expenses to Average Net Assets 2.12%(A) 2.19% 2.30% 2.30%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 2.12%(A) 2.19% 2.40% 2.38%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.66)%(A) (0.76)% (0.94)% (0.88)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) (0.66)%(A) (0.76)% (1.04)% (0.95)%(A)
Portfolio Turnover Rate 36% 46% 33% 63%(A)
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period
Enterprise Small Company Value Fund Six Months Ended ----------------------------------------------- 5/25/95
(Class Y) June 30, 2000 1999 1998 1997 1996 through 12/31/95
------------------------------------------- ----------------- ---------- ------------ ---------- ------------ -----------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 8.73 $ 8.06 $ 7.81 $ 5.77 $ 5.43 $ 5.37
------- ------ ------- ------ ------- --------
Net Investment Income (Loss) 0.02(F) 0.02(F) 0.01(F) 1.45 0.01 0.04
Net Realized and Unrealized Gain (Loss) on
Investments 0.26 1.30 0.46 1.12 0.63 0.26
------- ------ ------- ------ ------- --------
Total from Investment Operations 0.28 1.32 0.47 2.57 0.64 0.30
------- ------ ------- ------ ------- --------
Dividends from Net Investment Income -- -- -- -- -- (0.04)
Distributions from Capital Gains (0.15) (0.65) (0.22) (0.53) (0.30) (0.20)
------- ------- ------- ------- ------- --------
Total Distributions (0.15) (0.65) (0.22) (0.53) (0.30) (0.24)
------- ------- ------- ------- ------- --------
Net Asset Value End of Period $ 8.86 $ 8.73 $ 8.06 $ 7.81 $ 5.77 $ 5.43
======= ======= ======= ======= ======= ========
Total Return 3.23%(B) 16.60% 6.13% 44.53% 11.83% 5.55%(B)
Net Assets End of Period (in thousands) $ 1,352 $ 619 $ 277 $ 119 $ 1,926 $ 2,832
Ratio of Expenses to Average Net Assets 1.13%(A) 1.18% 1.30% 1.30% 1.30% 1.30%(A)
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 1.13%(A) 1.18% 1.39% 1.85% 1.92% 1.81%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets 0.36%(A) 0.23% 0.06% 2.74% 0.35% 0.18%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) 0.36%(A) 0.23% (0.02)% 2.19% (0.27)% (0.33)%(A)
Portfolio Turnover Rate 36% 46% 33% 63% 144% 37%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
89
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<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 A) June 30, 2000
----------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 24.55
---------
Net Investment Income (Loss) (0.06)(F)
Net Realized and Unrealized Gain (Loss)
on Investments (0.82)
---------
Total from Investment Operations (0.88)
---------
Dividends from Net Investment Income --
Distributions from Capital Gains (0.78)
---------
Total Distributions (0.78)
---------
Net Asset Value End of Period $ 22.89
=========
Total Return(C) (3.59)%(B)
Net Assets End of Period (in thousands) $1,190,829
Ratio of Expenses to Average Net Assets 1.41%(A)
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 1.41%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (0.53)%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) (0.53)%(A)
Portfolio Turnover Rate 27%
<CAPTION>
Enterprise Growth Fund (Class A) Year Ended December 31,
----------------------------------------- ----------------------------------------------------------------------
1999 1998 1997 1996 1995
--------------- ------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 21.07 $ 16.91 $ 13.10 $ 10.44 $ 7.76
--------- ------- ------- ------- -------
Net Investment Income (Loss) (0.12)(F) (0.11)(F) (0.07) (0.04) (0.03)
Net Realized and Unrealized Gain (Loss)
on Investments 4.73 5.31 4.23 3.44 3.13
--------- ------- ------- ------- -------
Total from Investment Operations 4.61 5.20 4.16 3.40 3.10
--------- ------- ------- ------- -------
Dividends from Net Investment Income -- -- -- -- --
Distributions from Capital Gains (1.13) (1.04) (0.35) (0.74) (0.42)
--------- ------- ------- ------- -------
Total Distributions (1.13) (1.04) (0.35) (0.74) (0.42)
--------- ------- ------- ------- -------
Net Asset Value End of Period $ 24.55 $ 21.07 $ 16.91 $ 13.10 $ 10.44
========= ======= ======= ======= =======
Total Return(C) 22.08% 30.94% 31.76% 32.60% 39.98%
Net Assets End of Period (in thousands) $1,268,022 $827,567 $424,280 $196,752 $122,559
Ratio of Expenses to Average Net Assets 1.40% 1.48% 1.43%(E) 1.53%(E) 1.60%
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 1.40% 1.48% 1.43%(E) 1.53%(E) 1.60%
Ratio of Net Investment Income (Loss) to
Average Net Assets (0.51)% (0.58)% (0.55)% (0.39)% (0.35)%
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) (0.51)% (0.58)% (0.55)% (0.39)% (0.35)%
Portfolio Turnover Rate 38% 28% 22% 30% 45%
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period
Six Months Ended ------------------------------------------------------ 5/1/95
Enterprise Growth Fund (Class B) June 30, 2000 1999 1998 1997 1996 through 12/31/95
------------------------------------- ----------------- ------------- ------------- ------------- ------------ -----------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 23.84 $ 20.62 $ 16.66 $ 12.97 $ 10.41 $ 8.69
-------- ------- ------- ------- ------- --------
Net Investment Income (Loss) (0.12)(F) (0.24)(F) (0.21)(F) (0.11) (0.06) (0.02)
Net Realized and Unrealized Gain
(Loss) on Investments (0.78) 4.59 5.21 4.15 3.36 2.16
-------- ------- ------- ------- ------- --------
Total from Investment Operations (0.90) 4.35 5.00 4.04 3.30 2.14
-------- ------- ------- ------- ------- --------
Dividends from Net Investment
Income -- -- -- -- -- --
Distributions from Capital Gains (0.78) (1.13) (1.04) (0.35) (0.74) (0.42)
-------- ------- ------- ------- ------- --------
Total Distributions (0.78) (1.13) (1.04) (0.35) (0.74) (0.42)
-------- ------- ------- ------- ------- --------
Net Asset Value End of Period $ 22.16 $ 23.84 $ 20.62 $ 16.66 $ 12.97 $ 10.41
======== ======= ======= ======= ======= ========
Total Return(D) (3.78)%(B) 21.30% 30.20% 31.15% 31.73% 24.66%(B)
Net Assets End of Period (in
thousands) $807,701 $811,706 $446,473 $166,932 $36,483 $ 4,572
Ratio of Expenses to Average Net
Assets 1.96%(A) 1.95% 2.03% 1.98%(E) 2.10%(E) 2.15%(A)
Ratio of Expenses to Average Net
Assets (Excluding Reimbursement) 1.96%(A) 1.95% 2.03% 1.98%(E) 2.10%(E) 2.15%(A)
Ratio of Net Investment Income
(Loss) to Average Net Assets (1.07)%(A) (1.06)% (1.13)% (1.10)% (0.96)% (0.82)%(A)
Ratio of Net Investment Income
(Loss) to Average Net Assets
(Excluding Reimbursement) (1.07)%(A) (1.06)% (1.13)% (1.10)% (0.96)% (0.82)%(A)
Portfolio Turnover Rate 27% 38% 28% 22% 30% 45%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
90
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
Enterprise Growth Fund -- (Continued)
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, 2000
------------------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 24.14
--------
Net Investment Income (Loss) (0.12)(F)
Net Realized and Unrealized Gain (Loss) on Investments (0.79)
--------
Total from Investment Operations (0.91)
--------
Dividends from Net Investment Income --
Distributions from Capital Gains (0.78)
--------
Total Distributions (0.78)
--------
Net Asset Value End of Period $ 22.45
========
Total Return(D) (3.78)%(B)
Net Assets End of Period (in thousands) $306,444
Ratio of Expenses to Average Net Assets 1.96%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 1.96%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.07)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) (1.07)%(A)
Portfolio Turnover Rate 27%
<CAPTION>
Year Ended December 31, For the Period
--------------------------- 5/1/97
Enterprise Growth Fund (Class C) 1999 1998 through 12/31/97
------------------------------------------------------------------- ------------- ------------- -----------------
<S> <C> <C> <C>
Net Asset Value Beginning of Period $ 20.87 $ 16.85 $ 14.11
------- ------- ---------
Net Investment Income (Loss) (0.24)(F) (0.21)(F) (0.06)
Net Realized and Unrealized Gain (Loss) on Investments 4.64 5.27 3.15
------- ------- ---------
Total from Investment Operations 4.40 5.06 3.09
------- ------- ---------
Dividends from Net Investment Income -- -- --
Distributions from Capital Gains (1.13) (1.04) (0.35)
------- ------- ---------
Total Distributions (1.13) (1.04) (0.35)
------- ------- ---------
Net Asset Value End of Period $ 24.14 $ 20.87 $ 16.85
======= ======= =========
Total Return(D) 21.28% 30.22% 21.91%(B)
Net Assets End of Period (in thousands) $294,683 $133,194 $ 26,601
Ratio of Expenses to Average Net Assets 1.95% 2.04% 1.97%(A),(E)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 1.95% 2.04% 1.97%(A),(E)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.07)% (1.13)% (1.10)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) (1.07)% (1.13)% (1.10)%(A)
Portfolio Turnover Rate 38% 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, 2000 1999 1998 1997 through 12/31/96
----------------------------------------------------- ----------------- ------------ ------------ ------------ -----------------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 25.06 $ 21.41 $ 17.02 $ 13.12 $ 11.96
-------- ------- ------- ------- --------
Net Investment Income (Loss) (0.01)(F) (0.02)(F) (0.02)(F) (0.02) --
Net Realized and Unrealized Gain (Loss) on
Investments (0.82) 4.80 5.45 4.27 1.90
-------- ------- ------- ------- --------
Total from Investment Operations (0.83) 4.78 5.43 4.25 1.90
-------- ------- ------- ------- --------
Dividends from Net Investment Income -- -- -- -- --
Distributions from Capital Gains (0.78) (1.13) (1.04) (0.35) (0.74)
-------- ------- ------- ------- --------
Total Distributions (0.78) (1.13) (1.04) (0.35) (0.74)
-------- ------- ------- ------- --------
Net Asset Value End of Period $ 23.45 $ 25.06 $ 21.41 $ 17.02 $ 13.12
======== ======= ======= ======= ========
Total Return (3.31)%(B) 22.52% 32.09% 32.40% 15.91%(B)
Net Assets End of Period (in thousands) $ 90,860 $86,826 $60,640 $44,596 $ 2,339
Ratio of Expenses to Average Net Assets 0.96%(A) 0.95% 1.03% 0.97%(E) 1.10%(A),(E)
Ratio of Expenses to Average Net Assets (Excluding
Reimbursement) 0.96%(A) 0.95% 1.03% 0.97%(E) 1.10%(A),(E)
Ratio of Net Investment Income (Loss) to Average Net
Assets (0.07)%(A) (0.07)% (0.13)% (0.10)% 0.04%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Reimbursement) (0.07)%(A) (0.07)% (0.13)% (0.10)% 0.04%(A)
Portfolio Turnover Rate 27% 38% 28% 22% 30%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
91
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
Enterprise Capital Appreciation Fund
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited)
Enterprise Capital Appreciation Fund Six Months Ended
(Class A) June 30, 2000
----------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 46.61
--------
Net Investment Income (Loss) (0.15)(F)
Net Realized and Unrealized Gain (Loss) on
Investments (2.46)
--------
Total from Investment Operations (2.61)
--------
Dividends from Net Investment Income --
Distributions from Capital Gains (6.36)
--------
Total Distributions (6.36)
--------
Net Asset Value End of Period $ 37.64
========
Total Return(C) (6.59)%(B)
Net Assets End of Period (in thousands) $194,478
Ratio of Expenses to Average Net Assets 1.53%(A)
Ratio of Expenses to Average Net Assets (Excluding
Reimbursement) 1.53%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (0.75)%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Reimbursement) (0.75)%(A)
Portfolio Turnover Rate 72%
<CAPTION>
Year Ended December 31,
Enterprise Capital Appreciation Fund ---------------------------------------------------------------------
(Class A) 1999 1998 1997 1996 1995
----------------------------------------------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 38.59 $ 35.54 $ 34.21 $ 32.54 $ 28.54
------- ------- ------- ------- -------
Net Investment Income (Loss) (0.47)(F) (0.39)(F) (0.37) (0.31) (0.25)
Net Realized and Unrealized Gain (Loss) on
Investments 15.43 10.55 7.31 5.69 7.59
------- ------- ------- ------- -------
Total from Investment Operations 14.96 10.16 6.94 5.38 7.34
------- ------- ------- ------- -------
Dividends from Net Investment Income -- -- -- -- --
Distributions from Capital Gains (6.94) (7.11) (5.61) (3.71) (3.34)
------- ------- ------- ------- -------
Total Distributions (6.94) (7.11) (5.61) (3.71) (3.34)
------- ------- ------- ------- -------
Net Asset Value End of Period $ 46.61 $ 38.59 $ 35.54 $ 34.21 $ 32.54
======= ======= ======= ======= =======
Total Return(C) 39.39% 30.15% 20.27% 16.52% 25.70%
Net Assets End of Period (in thousands) $181,232 $131,605 $112,738 $115,253 $121,207
Ratio of Expenses to Average Net Assets 1.52% 1.52% 1.65% 1.60%(E) 1.65%
Ratio of Expenses to Average Net Assets (Excluding
Reimbursement) 1.52% 1.52% 1.65% 1.60%(E) 1.65%
Ratio of Net Investment Income (Loss) to Average Net
Assets (1.15)% (1.01)% (1.06)% (0.87)% (0.82)%
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Reimbursement) (1.15)% (1.01)% (1.06)% (0.87)% (0.82)%
Portfolio Turnover Rate 170% 76% 61% 66% 65%
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31,
Enterprise Capital Appreciation Fund Six Months Ended ------------------------------------------------- For the Period
(Class B) June 30, 2000 1999 1998 1997 1996 through 12/31/95
----------------------------------------- ----------------- ------------ ------------ ----------- ----------- 5/1/95
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 44.80 $ 37.50 $ 34.89 $ 33.86 $ 32.42 $ 30.04
-------- ------- ------- ------- ------- --------
Net Investment Income (Loss) (0.25)(F) (0.68)(F) (0.58)(F) (0.45) (0.35) (0.12)
Net Realized and Unrealized Gain (Loss)
on Investments (2.34) 14.92 10.30 7.09 5.50 5.84
-------- ------- ------- ------- ------- --------
Total from Investment Operations (2.59) 14.24 9.72 6.64 5.15 5.72
-------- ------- ------- ------- ------- --------
Dividends from Net Investment Income -- -- -- -- -- --
Distributions from Capital Gains (6.36) (6.94) (7.11) (5.61) (3.71) (3.34)
-------- ------- ------- ------- ------- --------
Total Distributions (6.36) (6.94) (7.11) (5.61) (3.71) (3.34)
-------- ------- ------- ------- ------- --------
Net Asset Value End of Period $ 35.85 $ 44.80 $ 37.50 $ 34.89 $ 33.86 $ 32.42
======== ======= ======= ======= ======= ========
Total Return(D) (6.83)%(B) 38.62% 29.44% 19.60% 15.87% 18.99%(B)
Net Assets End of Period (in thousands) $ 73,034 $40,276 $14,663 $ 7,862 $ 5,047 $ 1,953
Ratio of Expenses to Average Net Assets 2.09%(A) 2.08% 2.08% 2.21% 2.14%(E) 2.08%(A)
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 2.09%(A) 2.08% 2.08% 2.21% 2.14%(E) 2.08%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (1.29)%(A) (1.69)% (1.56)% (1.61)% (1.43)% (1.41)%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) (1.29)%(A) (1.69)% (1.56)% (1.61)% (1.43)% (1.41)%(A)
Portfolio Turnover Rate 72% 170% 76% 61% 66% 65%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
92
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
Enterprise Capital Appreciation Fund -- (Continued)
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period From
Six Months Ended ----------------------- 5/1/97
Enterprise Capital Appreciation Fund (Class C) June 30, 2000 1999 1998 through 12/31/97
------------------------------------------------------------- ----------------- ----------- ----------- --------------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 45.85 $ 38.25 $ 35.43 $ 33.54
-------- ------- ------- --------
Net Investment Income (Loss) (0.26)(F) (0.68)(F) (0.57)(F) (0.19)
Net Realized and Unrealized Gain (Loss) on Investments (2.37) 15.22 10.50 7.69
-------- ------- ------- --------
Total from Investment Operations (2.63) 14.54 9.93 7.50
-------- ------- ------- --------
Dividends from Net Investment Income -- -- -- --
Distributions from Capital Gains (6.36) (6.94) (7.11) (5.61)
-------- ------- ------- --------
Total Distributions (6.36) (6.94) (7.11) (5.61)
-------- ------- ------- --------
Net Asset Value End of Period $ 36.86 $ 45.85 $ 38.25 $ 35.43
======== ======= ======= ========
Total Return(D) (6.76)%(B) 38.64% 29.60% 22.35%(B)
Net Assets End of Period (in thousands) $ 23,366 $ 6,918 $ 1,040 $ 126
Ratio of Expenses to Average Net Assets 2.10%(A) 2.11% 2.11% 2.21%(A)
Ratio of Expenses to Average Net Assets (Excluding
Reimbursement) 2.10%(A) 2.11% 2.11% 2.21%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.29)%(A) (1.69)% (1.53)% (1.88)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) (1.29)%(A) (1.69)% (1.53)% (1.88)%(A)
Portfolio Turnover Rate 72% 170% 76% 61%(A)
</TABLE>
<TABLE>
<CAPTION>
(Unaudited)
Six Months Ended Year Ended For the Period 5/14/98
Enterprise Capital Appreciation Fund (Class Y) June 30, 2000 December 31, 1999 through 12/31/98
------------------------------------------------------------------- ----------------- ------------------ ----------------------
<S> <C> <C> <C>
Net Asset Value Beginning of Period $ 47.14 $ 38.79 $ 40.71
-------- ------- --------
Net Investment Income (Loss) (0.06)(F) (0.28)(F) (0.15)(F)
Net Realized and Unrealized Gain (Loss) on Investments (2.48) 15.57 5.34
-------- ------- --------
Total from Investment Operations (2.54) 15.29 5.19
-------- ------- --------
Dividends from Net Investment Income -- -- --
Distributions from Capital Gains (6.36) (6.94) (7.11)
-------- ------- --------
Total Distributions (6.36) (6.94) (7.11)
-------- ------- --------
Net Asset Value End of Period $ 38.24 $ 47.14 $ 38.79
======== ======= ========
Total Return (6.35)%(B) 40.04% 14.08%(B)
Net Assets End of Period (in thousands) $ 570 $ 428 $ 204
Ratio of Expenses to Average Net Assets 1.09%(A) 1.07% 1.05%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 1.09%(A) 1.07% 1.05%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.30)%(A) (0.69)% (0.51)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) (0.30)%(A) (0.69)% (0.51)%(A)
Portfolio Turnover Rate 72% 170% 76%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
93
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
Enterprise Equity Fund
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period
Six Months Ended ------------------------- 5/1/97
Enterprise Equity Fund (Class A) June 30, 2000 1999 1998 through 12/31/97
------------------------------------------------------------------- ----------------- ------------ ------------ -----------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 7.26 $ 6.47 $ 5.96 $ 5.00
-------- ------- ------- --------
Net Investment Income (Loss) (0.03)(F) (0.01)(F) 0.03 0.01
Net Realized and Unrealized Gain (Loss) on Investments 1.27 1.11 0.53 1.05
-------- ------- ------- --------
Total from Investment Operations 1.24 1.10 0.56 1.06
-------- ------- ------- --------
Dividends from Net Investment Income -- -- (0.02) --
Distributions from Capital Gains (0.09) (0.31) (0.03) (0.10)
-------- ------- ------- --------
Total Distributions (0.09) (0.31) (0.05) (0.10)
-------- ------- ------- --------
Net Asset Value End of Period $ 8.41 $ 7.26 $ 6.47 $ 5.96
======== ======= ======= ========
Total Return(C) 17.14%(B) 17.15% 9.38% 21.30%(B)
Net Assets End of Period (in thousands) $ 23,764 $ 8,139 $ 6,741 $ 3,196
Ratio of Expenses to Average Net Assets 1.60%(A) 1.60% 1.60% 1.60%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 1.94%(A) 2.55% 2.73% 6.52%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.84)%(A) (0.11)% 0.59% 0.26%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) (1.18)%(A) (1.06)% (0.54)% (4.66)%(A)
Portfolio Turnover Rate 13% 176% 35% 69%(A)
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period
Six Months Ended ------------------------- 5/1/97
Enterprise Equity Fund (Class B) June 30, 2000 1999 1998 through 12/31/97
------------------------------------------------------------------- ----------------- ------------ ------------ -----------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 7.17 $ 6.43 $ 5.94 $ 5.00
-------- ------- ------- --------
Net Investment Income (Loss) (0.05)(F) (0.04)(F) -- --
Net Realized and Unrealized Gain (Loss) on Investments 1.25 1.09 0.53 1.04
-------- ------- ------- --------
Total from Investment Operations 1.20 1.05 0.53 1.04
-------- ------- ------- --------
Dividends from Net Investment Income -- -- (0.01) --
Distributions from Capital Gains (0.09) (0.31) (0.03) (0.10)
-------- ------- ------- --------
Total Distributions (0.09) (0.31) (0.04) (0.10)
-------- ------- ------- --------
Net Asset Value End of Period $ 8.28 $ 7.17 $ 6.43 $ 5.94
======== ======= ======= ========
Total Return(D) 16.79%(B) 16.49% 8.82% 20.80%(B)
Net Assets End of Period (in thousands) $ 25,216 $11,431 $ 8,731 $ 1,820
Ratio of Expenses to Average Net Assets 2.15%(A) 2.15% 2.15% 2.15%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 2.50%(A) 3.10% 3.29% 6.21%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.40)%(A) (0.66)% 0.07% (0.23)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) (1.76)%(A) (1.61)% (1.07)% (4.29)%(A)
Portfolio Turnover Rate 13% 176% 35% 69%A
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
94
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
Enterprise Equity Fund -- (Continued)
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period
Six Months Ended ------------------------- 5/1/97
Enterprise Equity Fund (Class C) June 30, 2000 1999 1998 through 12/31/97
------------------------------------------------------------------- ----------------- ------------ ------------ -----------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 7.17 $ 6.44 $ 5.94 $ 5.00
-------- ------- ------- --------
Net Investment Income (Loss) (0.05)(F) (0.04)(F) 0.01 --
Net Realized and Unrealized Gain (Loss) on Investments 1.26 1.08 0.53 1.04
-------- ------- ------- --------
Total from Investment Operations 1.21 1.04 0.54 1.04
-------- ------- ------- --------
Dividends from Net Investment Income -- -- (0.01) --
Distributions from Capital Gains (0.09) (0.31) (0.03) (0.10)
-------- ------- ------- --------
Total Distributions (0.09) (0.31) (0.04) (0.10)
-------- ------- ------- --------
Net Asset Value End of Period $ 8.29 $ 7.17 $ 6.44 $ 5.94
======== ======= ======= ========
Total Return(D) 16.93%(B) 16.30% 8.98% 20.89%(B)
Net Assets End of Period (in thousands) $ 7,703 $ 2,144 $ 1,504 $ 283
Ratio of Expenses to Average Net Assets 2.15%(A) 2.15% 2.15% 2.15%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 2.49%(A) 3.09% 3.28% 6.01%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.40)%(A) (0.64)% 0.09% (0.21)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) (1.74)%(A) (1.58)% (1.03)% (4.07)%(A)
Portfolio Turnover Rate 13% 176% 35% 69%(A)
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) For the Period
Six Months Ended Year Ended 10/14/98
Enterprise Equity Fund (Class Y) June 30, 2000 December 31, 1999 through 12/31/98
------------------------------------------------------------------- ----------------- ----------------- -----------------
<S> <C> <C> <C>
Net Asset Value Beginning of Period $ 7.26 $ 6.43 $ 5.86
-------- ------- --------
Net Investment Income (Loss) (0.02)(F) 0.01(F) 0.01
Net Realized and Unrealized Gain (Loss) on Investments 1.28 1.13 0.63
-------- ------- --------
Total from Investment Operations 1.26 1.14 0.64
-------- ------- --------
Dividends from Net Investment Income -- -- (0.04)
Distributions from Capital Gains (0.09) (0.31) (0.03)
-------- ------- --------
Total Distributions (0.09) (0.31) (0.07)
-------- ------- --------
Net Asset Value End of Period $ 8.43 $ 7.26 $ 6.43
======== ======= ========
Total Return 17.42%(B) 17.89% 10.93%(B)
Net Assets End of Period (in thousands) $ 270 $ 161 $ 57
Ratio of Expenses to Average Net Assets 1.15%(A) 1.15% 1.13%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 1.52%(A) 2.15% 2.26%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.41)%(A) 0.21% 1.04%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) (0.78)%(A) (0.79)% (0.11)%(A)
Portfolio Turnover Rate 13% 176% 35%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
95
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
Enterprise Growth and Income Fund
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period For the Period
Enterprise Growth and Income Fund Six Months Ended ----------------------- 10/1/97 7/17/97
(Class A) June 30, 2000 1999 1998 through 12/31/97 through 9/30/97
------------------------------------------- ----------------- ----------- ----------- ------------------ ----------------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 38.57 $ 29.01 $ 25.19 $ 25.71 $ 25.05
-------- ------- ------- -------- --------
Net Investment Income (Loss) 0.01(F) 0.00(F),(G) 0.14 0.01 0.00(G)
Net Realized and Unrealized Gain (Loss) on
Investments 2.00 9.57 4.00 0.04 0.66
-------- -------- ------- -------- --------
Total from Investment Operations 2.01 9.57 4.14 0.05 0.66
-------- -------- ------- -------- --------
Dividends from Net Investment Income -- -- (0.09) (0.11) --
Distributions from Capital Gains -- (0.01) (0.23) (0.46) --
-------- -------- ------- -------- --------
Total Distributions -- (0.01) (0.32) (0.57) --
-------- -------- ------- -------- --------
Net Asset Value End of Period $ 40.58 $ 38.57 $ 29.01 $ 25.19 $ 25.71
======== ======== ======= ======== ========
Total Return(C) 5.21%(B) 32.97% 16.50% 0.20%(B) 2.63%(B)
Net Assets End of Period (in thousands) $ 84,396 $65,759 $16,664 $ 4,032 $ 1,109
Ratio of Expenses to Average Net Assets 1.50%(A) 1.50% 1.50% 1.50%(A) 1.50%(A)
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 1.56%(A) 1.64% 1.93% 2.11%(A) 4.47%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets 0.03%(A) 0.00% 0.41% 0.56%(A) 0.07%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) (0.03)%(A) (0.15)% (0.03)% (0.04)%(A) (2.90)%(A)
Portfolio Turnover Rate 4% 3% 5% 1%(A) 16%(A)
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period For the Period
Enterprise Growth and Income Fund Six Months Ended ------------------------- 10/1/97 7/17/97
(Class B) June 30, 2000 1999 1998 through 12/31/97 through 9/30/97
------------------------------------------- ----------------- ------------ ------------ ------------------ ----------------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 38.20 $ 28.90 $ 25.15 $ 25.68 $ 25.05
-------- ------- ------- -------- --------
Net Investment Income (Loss) (0.09)(F) (0.18)(F) 0.05 (0.01) (0.01)
Net Realized and Unrealized Gain (Loss) on
Investments 1.99 9.49 3.95 0.03 0.64
-------- ------- ------- -------- --------
Total from Investment Operations 1.90 9.31 4.00 0.02 0.63
-------- ------- ------- -------- --------
Dividends from Net Investment Income -- -- (0.02) (0.09) --
Distributions from Capital Gains -- (0.01) (0.23) (0.46) --
-------- ------- ------- -------- --------
Total Distributions -- (0.01) (0.25) (0.55) --
-------- ------- ------- -------- --------
Net Asset Value End of Period $ 40.10 $ 38.20 $ 28.90 $ 25.15 $ 25.68
======== ======= ======= ======== ========
Total Return(D) 4.97%(B) 32.20% 15.95% 0.07%(B) 2.51%(B)
Net Assets End of Period (in thousands) $105,146 $74,597 $21,891 $ 3,257 $ 992
Ratio of Expenses to Average Net Assets 2.05%(A) 2.05% 2.05% 2.05%(A) 2.05%(A)
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 2.11%(A) 2.19% 2.48% 2.66%(A) 4.59%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (0.52)%(A) (0.56)% (0.17)% (0.02)%(A) (0.34)%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) (0.58)%(A) (0.70)% (0.60)% (0.63)%(A) (2.87)%(A)
Portfolio Turnover Rate 4% 3% 5% 1%(A) 16%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
96
<PAGE>
Enterprise Growth and Income Fund -- (Continued)
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) For the Period For the Period
Enterprise Growth and Income Fund Six Months Ended 10/1/97 7/17/97
(Class C) June 30, 2000 Year Ended December 31, through 12/31/97 through 9/30/97
------------------------------------------- ----------------- ------------------------ ------------------ ----------------
1999 1998
------------ -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 38.24 $ 28.91 $ 25.15 $ 25.68 $ 25.05
-------- ------- ------- -------- --------
Net Investment Income (Loss) ( 0.09)(F) ( 0.19)(F) 0.06 ( 0.02) ( 0.01)
Net Realized and Unrealized Gain (Loss) on
Investments 1.99 9.53 3.94 0.05 0.64
-------- ------- ------- -------- --------
Total from Investment Operations 1.90 9.34 4.00 0.03 0.63
-------- ------- ------- -------- --------
Dividends from Net Investment Income -- -- ( 0.01) ( 0.10) --
Distributions from Capital Gains -- ( 0.01) ( 0.23) ( 0.46) --
-------- ------- ------- -------- --------
Total Distributions -- ( 0.01) ( 0.24) ( 0.56) --
-------- ------- ------- -------- --------
Net Asset Value End of Period $ 40.14 $ 38.24 $ 28.91 $ 25.15 $ 25.68
======== ======= ======= ======== ========
Total Return(D) 4.97%(B) 32.29% 15.95% 0.10%(B) 2.51%(B)
Net Assets End of Period (in thousands) $ 17,892 $13,710 $ 4,654 $ 561 $ 99
Ratio of Expenses to Average Net Assets 2.05%(A) 2.05% 2.05% 2.05%(A) 2.05%(A)
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 2.11%(A) 2.20% 2.49% 2.64%(A) 4.60%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (0.52)%(A) (0.58)% (0.16)% 0.03%(A) (0.39)%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) (0.58)%(A) (0.72)% (0.60)% (0.56)%(A) (2.94)%(A)
Portfolio Turnover Rate 4% 3% 5% 1%(A) 16%(A)
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31,
Enterprise Growth and Income Six Months Ended ----------------------
Fund (Class Y) June 30, 2000 1999 1998
------------------------------------- ----------------- ----------- -----------
<S> <C> <C> <C>
Net Asset Value Beginning of Period $ 38.91 $ 29.13 $ 25.24
------- ------- -------
Net Investment Income (Loss) 0.09(F) 0.14(F) 0.29
Net Realized and Unrealized Gain
(Loss) on Investments 2.05 9.65 4.00
------- ------- -------
Total from Investment Operations 2.14 9.79 4.29
------- ------- -------
Dividends from Net Investment
Income -- -- (0.17)
Distributions from Capital Gains -- (0.01) (0.23)
------- ------- -------
Total Distributions -- (0.01) (0.40)
------- ------- -------
Net Asset Value End of Period $ 41.05 $ 38.91 $ 29.13
======= ======= =======
Total Return 5.50%(B) 33.59% 17.08%
Net Assets End of Period
(in thousands) $17,273 $17,116 $18,310
Ratio of Expenses to Average Net
Assets 1.05%(A) 1.05% 1.05%
Ratio of Expenses to Average Net
Assets (Excluding Reimbursement) 1.10%(A) 1.18% 1.48%
Ratio of Net Investment Income
(Loss) to Average Net Assets 0.47%(A) 0.41% 0.89%
Ratio of Net Investment Income
(Loss) to Average Net Assets
(Excluding Reimbursement) 0.41%(A) 0.29% 0.45%
Portfolio Turnover Rate 4% 3% 5%
<CAPTION>
For the Period Year Year Year
Enterprise Growth and Income 10/1/97 Ended Ended Ended
Fund (Class Y) through 12/31/97 9/30/97 9/30/96 9/30/95
------------------------------------- ------------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 25.73 $ 20.11 $ 16.69 $ 12.72
------- ------- ------- -------
Net Investment Income (Loss) 0.06 0.35 0.21 0.13
Net Realized and Unrealized Gain
(Loss) on Investments 0.02 6.18 3.45 4.22
------- ------- ------- -------
Total from Investment Operations 0.08 6.53 3.66 4.35
------- ------- ------- -------
Dividends from Net Investment
Income (0.11) (0.20) (0.24) (0.16)
Distributions from Capital Gains (0.46) (0.71) -- (0.22)
------- ------- -------- --------
Total Distributions (0.57) (0.91) (0.24) (0.38)
------- ------- -------- --------
Net Asset Value End of Period $ 25.24 $ 25.73 $ 20.11 $ 16.69
======= ======= ======== ========
Total Return 0.31%(B) 33.55% 22.21% 35.24%
Net Assets End of Period
(in thousands) $15,542 $15,428 $ 8,865 $ 5,657
Ratio of Expenses to Average Net
Assets 1.05%(A) 0.99% 0.97% 0.90%
Ratio of Expenses to Average Net
Assets (Excluding Reimbursement) 1.68%(A) 2.20% 2.05% 2.20%
Ratio of Net Investment Income
(Loss) to Average Net Assets 0.96%(A) 0.88% 1.23% 1.52%
Ratio of Net Investment Income
(Loss) to Average Net Assets
(Excluding Reimbursement) 0.33%(A) (0.33)% 0.15% 0.22%
Portfolio Turnover Rate 1%(A) 16% 18% 25%
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
97
<PAGE>
Enterprise Equity Income Fund
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31,
Enterprise Equity Income Fund Six Months Ended -----------------------------------------------------------------
(Class A) June 30, 2000 1999 1998 1997 1996 1995
------------------------------------------- ----------------- ------------ ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 27.48 $ 26.89 $ 26.42 $ 22.44 $ 20.73 $ 16.43
-------- ------- ------- ------- ------- -------
Net Investment Income (Loss) 0.11(F) 0.22(F) 0.36 0.17 0.41 0.45
Net Realized and Unrealized Gain (Loss) on
Investments (1.26) 1.69 2.52 5.95 3.27 5.00
-------- ------- ------- ------- ------- -------
Total from Investment Operations (1.15) 1.91 2.88 6.12 3.68 5.45
-------- ------- ------- ------- ------- -------
Dividends from Net Investment Income (0.11) (0.20) (0.35) (0.15) (0.40) (0.45)
Distributions from Capital Gains (0.85) (1.12) (2.06) (1.99) (1.57) (0.70)
-------- -------- -------- ------- ------- -------
Total Distributions (0.96) (1.32) (2.41) (2.14) (1.97) (1.15)
-------- -------- -------- ------- ------- -------
Net Asset Value End of Period $ 25.37 $ 27.48 $ 26.89 $ 26.42 $ 22.44 $ 20.73
======== ======== ======== ======= ======= =======
Total Return(C) (4.20)%(B) 7.20% 11.13% 28.08% 17.86% 33.40%
Net Assets End of Period (in thousands) $ 94,707 $111,395 $111,275 $97,932 $72,647 $61,906
Ratio of Expenses to Average Net Assets 1.50%(A) 1.50% 1.50% 1.50% 1.50% 1.50%
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 1.54%(A) 1.51% 1.58% 1.62% 1.68% 1.78%
Ratio of Net Investment Income (Loss) to
Average Net Assets 0.83%(A) 0.76% 1.32% 1.35% 1.87% 2.33%
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) 0.79%(A) 0.74% 1.25% 1.23% 1.69% 2.06%
Portfolio Turnover Rate 14% 32% 31% 33% 33% 26%
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31,
Enterprise Equity Income Fund Six Months Ended ----------------------------------------------- For the Period
(Class B) June 30, 2000 1999 1998 1997 1996 5/1/95
------------------------------------------- ----------------- ----------- ----------- ----------- ----------- through 12/31/95
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 27.10 $ 26.57 $ 26.17 $ 22.30 $ 20.67 $ 18.12
-------- ------- ------- ------- ------- -------
Net Investment Income (Loss) 0.04(F) 0.06(F) 0.20 0.12 0.24 0.29
Net Realized and Unrealized Gain (Loss) on
Investments (1.25) 1.65 2.49 5.83 3.30 3.40
-------- ------- ------- ------- ------- -------
Total from Investment Operations (1.21) 1.71 2.69 5.95 3.54 3.69
-------- ------- ------- ------- ------- -------
Dividends from Net Investment Income (0.04) (0.06) (0.23) (0.09) (0.34) (0.44)
Distributions from Capital Gains (0.85) (1.12) (2.06) (1.99) (1.57) (0.70)
-------- ------- ------- ------- -------- -------
Total Distributions (0.89) (1.18) (2.29) (2.08) (1.91) (1.14)
-------- ------- ------- ------- -------- -------
Net Asset Value End of Period $ 25.00 $ 27.10 $ 26.57 $ 26.17 $ 22.30 $ 20.67
======== ======= ======= ======= ======== =======
Total Return(D) (4.48)%(B) 6.55% 10.49% 27.35% 17.22% 20.57%(B)
Net Assets End of Period (in thousands) $ 37,821 $44,574 $33,807 $19,055 $ 5,615 $ 1,086
Ratio of Expenses to Average Net Assets 2.05%(A) 2.05% 2.05% 2.05% 2.05% 2.05%(A)
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 2.09%(A) 2.07% 2.13% 2.17% 2.23% 2.23%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets 0.28%(A) 0.20% 0.78% 0.77% 1.32% 1.56%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) 0.24%(A) 0.18% 0.71% 0.65% 1.14% 1.33%(A)
Portfolio Turnover Rate 14% 32% 31% 33% 33% 26%A
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
98
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
Enterprise Equity Income Fund -- (Continued)
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period From
Six Months Ended ----------------------- 5/1/97
Enterprise Equity Income Fund (Class C) June 30, 2000 1999 1998 through 12/31/97
------------------------------------------------------------- ----------------- ----------- ----------- --------------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 27.26 $ 26.70 $ 26.31 $ 24.26
-------- ------- ------- -------
Net Investment Income (Loss) 0.04(F) 0.06(F) 0.21 0.04
Net Realized and Unrealized Gain (Loss) on Investments (1.25) 1.69 2.49 4.14
-------- ------- ------- -------
Total from Investment Operations (1.21) 1.75 2.70 4.18
-------- ------- ------- -------
Dividends from Net Investment Income (0.04) (0.07) (0.25) (0.14)
Distributions from Capital Gains (0.85) (1.12) (2.06) (1.99)
-------- -------- -------- -------
Total Distributions (0.89) (1.19) (2.31) (2.13)
-------- -------- -------- -------
Net Asset Value End of Period $ 25.16 $ 27.26 $ 26.70 $ 26.31
======== ======== ======== =======
Total Return(D) ( 4.45)%(B) 6.64% 10.47% 18.21%(B)
Net Assets End of Period (in thousands) $ 7,651 $ 9,338 $ 5,639 $ 1,857
Ratio of Expenses to Average Net Assets 2.05%(A) 2.05% 2.05% 2.05%(A)
Ratio of Expenses to Average Net Assets (Excluding
Reimbursement) 2.09%(A) 2.07% 2.13% 2.20%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.28%(A) 0.20% 0.81% 0.69%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) 0.24%(A) 0.18% 0.73% 0.54%(A)
Portfolio Turnover Rate 14% 32% 31% 33%(A)
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) For the Period
Six Months Ended Year Ended 1/22/98
Enterprise Equity Income Fund (Class Y) June 30, 2000 December 31, 1999 through 12/31/98
----------------------------------------------------------------------- ----------------- ----------------- ----------------
<S> <C> <C> <C>
Net Asset Value Beginning of Period $ 27.46 $ 26.87 $ 26.25
-------- ------- -------
Net Investment Income (Loss) 0.17(F) 0.34(F) 0.47
Net Realized and Unrealized Gain (Loss) on Investments (1.26) 1.70 2.69
-------- ------- -------
Total from Investment Operations (1.09) 2.04 3.16
-------- ------- -------
Dividends from Net Investment Income (0.17) (0.33) (0.48)
Distributions from Capital Gains (0.85) (1.12) (2.06)
-------- -------- -------
Total Distributions (1.02) (1.45) (2.54)
-------- -------- -------
Net Asset Value End of Period $ 25.35 $ 27.46 $ 26.87
======== ======== =======
Total Return (3.99)%(B) 7.69% 12.26%(B)
Net Assets End of Period (in thousands) $ 119 $ 153 $ 112
Ratio of Expenses to Average Net Assets 1.05%(A) 1.05% 1.05%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 1.09%(A) 1.07% 1.13%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 1.28%(A) 1.20% 1.79%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding
Reimbursement) 1.24%(A) 1.18% 1.72%(A)
Portfolio Turnover Rate 14% 32% 31%A
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
99
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
Enterprise International Growth Fund
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited)
Enterprise International Growth Fund Six Months Ended
(Class A) June 30, 2000
--------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 23.81
----------
Net Investment Income (Loss) (0.05)(F)
Net Realized and Unrealized Gain (Loss) on
Investments (2.80)
----------
Total from Investment Operations (2.85)
----------
Dividends from Net Investment Income --
Distributions from Capital Gains (0.22)
----------
Total Distributions (0.22)
----------
Net Asset Value End of Period $ 20.74
==========
Total Return(C) (12.07)%(B)
Net Assets End of Period (in thousands) $ 55,818
Ratio of Expenses to Average Net Assets 1.85%(A)
Ratio of Expenses to Average Net Assets (Excluding
Reimbursement) 1.85%(A)
Ratio of Net Investment Income (Loss) to Average
Net Assets (0.44)%(A)
Ratio of Net Investment Income (Loss) to Average
Net Assets (Excluding Reimbursement) (0.44)%(A)
Portfolio Turnover Rate 34%
<CAPTION>
Year Ended December 31,
------------------------------------------------------------
Enterprise International Growth Fund
(Class A) 1999 1998 1997 1996 1995
--------------------------------------------------- ------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 18.89 $ 16.71 $ 17.10 $ 16.08 $ 14.70
------- ------- ------- ------- -------
Net Investment Income (Loss) (0.11)(F) 0.06 0.08 0.10 0.11
Net Realized and Unrealized Gain (Loss) on
Investments 7.37 2.32 0.73 1.88 2.12
------- ------- ------- ------- -------
Total from Investment Operations 7.26 2.38 0.81 1.98 2.23
------- ------- ------- ------- -------
Dividends from Net Investment Income (0.16) (0.05) (0.07) (0.09) (0.09)
Distributions from Capital Gains (2.18) (0.15) (1.13) (0.87) (0.76)
------- ------- ------- ------- -------
Total Distributions (2.34) (0.20) (1.20) (0.96) (0.85)
------- ------- ------- ------- -------
Net Asset Value End of Period $ 23.81 $ 18.89 $ 16.71 $ 17.10 $ 16.08
======= ======= ======= ======= =======
Total Return(C) 39.76% 14.28% 4.75% 12.32% 15.17%
Net Assets End of Period (in thousands) $55,426 $41,458 $38,020 $34,837 $28,628
Ratio of Expenses to Average Net Assets 1.94% 2.00% 2.00% 2.00% 2.00%
Ratio of Expenses to Average Net Assets (Excluding
Reimbursement) 1.94% 2.11% 2.11% 2.19% 2.40%
Ratio of Net Investment Income (Loss) to Average
Net Assets (0.53)% 0.30% 0.50% 0.61% 0.70%
Ratio of Net Investment Income (Loss) to Average
Net Assets (Excluding Reimbursement) (0.53)% 0.19% 0.39% 0.42% 0.30%
Portfolio Turnover Rate 131% 52% 27% 24% 31%
</TABLE>
<TABLE>
<CAPTION>
(Unaudited)
Enterprise International Growth Fund Six Months Ended
(Class B) June 30, 2000 Year Ended December 31,
------------------------------------------- ----------------- ------------------------------------------------- For the Period
5/1/95
1999 1998 1997 1996 through 12/31/95
------------ ------------ ----------- ----------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 23.40 $ 18.62 $ 16.53 $ 16.97 $ 16.02 $ 14.82
--------- ------- ------- ------- ------- --------
Net Investment Income (Loss) (0.11)(F) (0.21)(F) (0.04) 0.01 0.01 (0.02)
Net Realized and Unrealized Gain (Loss) on
Investments (2.77) 7.23 2.28 0.69 1.87 2.08
--------- ------- ------- ------- ------- --------
Total from Investment Operations (2.88) 7.02 2.24 0.70 1.88 2.06
--------- ------- ------- ------- ------- --------
Dividends from Net Investment Income -- (0.06) -- (0.01) (0.06) (0.10)
Distributions from Capital Gains (0.22) (2.18) (0.15) (1.13) (0.87) (0.76)
--------- ------- ------- ------- ------- --------
Total Distributions (0.22) (2.24) (0.15) (1.14) (0.93) (0.86)
--------- ------- ------- ------- ------- --------
Net Asset Value End of Period $ 20.30 $ 23.40 $ 18.62 $ 16.53 $ 16.97 $ 16.02
========= ======= ======= ======= ======= ========
Total ReturnD (12.41)%(B) 39.02% 13.57% 4.17% 11.72% 13.88%(B)
Net Assets End of Period (in thousands) $ 27,472 $23,475 $16,008 $ 9,878 $ 4,276 $ 1,094
Ratio of Expenses to Average Net Assets 2.41%(A) 2.48% 2.55% 2.55% 2.55% 2.55%(A)
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 2.41%(A) 2.48% 2.66% 2.67% 2.75% 2.75%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (0.98)%(A) (1.10)% (0.28)% (0.06)% 0.09% (0.65)%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) (0.98)%(A) (1.10)% (0.39)% (0.18)% (0.11)% (0.85)%(A)
Portfolio Turnover Rate 34% 131% 52% 27% 24% 31%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
100
--------------------------------------------------------------------------------
<PAGE>
Enterprise International Growth Fund -- (Continued)
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, 2000 Year Ended December 31, For the Period
------------------------------------------------------------------- ----------------- ----------------------- 5/1/97
1999 1998 through 12/31/97
----------- ----------- -----------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 23.59 $ 18.77 $ 16.66 $ 17.51
--------- ------- ------- --------
Net Investment Income (Loss) (0.10)(F) (0.22)(F) (0.04) (0.03)
Net Realized and Unrealized Gain (Loss) on Investments (2.80) 7.29 2.31 0.39
--------- ------- ------- --------
Total from Investment Operations (2.90) 7.07 2.27 0.36
--------- ------- ------- --------
Dividends from Net Investment Income -- (0.07) (0.01) (0.08)
Distributions from Capital Gains (0.22) (2.18) (0.15) (1.13)
--------- ------- ------- --------
Total Distributions (0.22) (2.25) (0.16) (1.21)
--------- ------- ------- --------
Net Asset Value End of Period $ 20.47 $ 23.59 $ 18.77 $ 16.66
========= ======= ======= ========
Total ReturnD (12.39)%(B) 38.95% 13.64% 2.07%(B)
Net Assets End of Period (in thousands) $ 7,725 $ 5,771 $ 3,498 $ 1,113
Ratio of Expenses to Average Net Assets 2.41%(A) 2.48% 2.55% 2.55%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 2.41%(A) 2.48% 2.67% 2.75%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (0.95)%(A) (1.12)% (0.35)% (0.51)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) (0.95)%(A) (1.12)% (0.47)% (0.71)%(A)
Portfolio Turnover Rate 34% 131% 52% 27%(A)
</TABLE>
<TABLE>
<CAPTION>
(Unaudited)
Enterprise International Growth Fund Six Months Ended
(Class Y) June 30, 2000 Year Ended December 31,
------------------------------------------- ----------------- -------------------------------------------- For the Period
7/5/95
1999 1998 1997 1996 through 12/31/95
------------ ----------- ----------- ----------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 23.82 $ 18.88 $ 16.71 $ 17.10 $ 16.07 $ 14.93
-------- ------- ------- ------- ------- -------
Net Investment Income (Loss) (0.00)(F,G) (0.03)(F) 0.14 0.17 0.14 0.02
Net Realized and Unrealized Gain (Loss) on
Investments (2.84) 7.40 2.32 0.72 1.92 2.02
-------- ------- ------- ------- ------- -------
Total from Investment Operations (2.84) 7.37 2.46 0.89 2.06 2.04
-------- ------- ------- ------- ------- -------
Dividends from Net Investment Income -- (0.25) (0.14) (0.15) (0.16) (0.14)
Distributions from Capital Gains (0.22) (2.18) (0.15) (1.13) (0.87) (0.76)
-------- ------- ------- ------- -------- -------
Total Distributions (0.22) (2.43) (0.29) (1.28) (1.03) (0.90)
-------- ------- ------- ------- -------- -------
Net Asset Value End of Period $ 20.76 $ 23.82 $ 18.88 $ 16.71 $ 17.10 $ 16.07
======== ======= ======= ======= ======== =======
Total Return (12.02)%(B) 40.39% 14.73% 5.21% 12.86% 13.65%(B)
Net Assets End of Period (in thousands) $ 24,062 $20,738 $13,379 $10,986 $ 8,828 $ 3,109
Ratio of Expenses to Average Net Assets 1.40%(A) 1.48% 1.55% 1.55% 1.55% 1.55%(A)
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 1.40%(A) 1.48% 1.66% 1.66% 1.75% 1.75%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (0.00)%(A) (0.14)% 0.75% 0.95% 1.03% 0.26%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) (0.00)%(A) (0.14)% 0.64% 0.84% 0.84% 0.05%(A)
Portfolio Turnover Rate 34% 131% 52% 27% 24% 31%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
101
--------------------------------------------------------------------------------
<PAGE>
Enterprise Internet Fund
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) For the Period
Six Months Ended 7/1/99
Enterprise Internet Fund (Class A) June 30, 2000 through 12/31/99
--------------------------------------------------------------------------------------- ----------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 31.72 $ 10.00
--------- ---------
Net Investment Income (Loss) (0.24)(F) (0.12)(F)
Net Realized and Unrealized Gain (Loss) on Investments (3.40) 22.19
--------- ---------
Total from Investment Operations (3.64) 22.07
--------- ---------
Dividends from Net Investment Income -- --
Distributions from Capital Gains (0.10) (0.35)
--------- ---------
Total Distributions (0.10) (0.35)
--------- ---------
Net Asset Value End of Period $ 27.98 $ 31.72
========= =========
Total ReturnC (11.56)%(B) 220.79%(B)
Net Assets End of Period (in thousands) $ 176,905 $ 119,283
Ratio of Expenses to Average Net Assets 1.88%(A) 1.90%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 1.88%(A) 2.04%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.56)%(A) (1.28)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Reimbursement) (1.56)%(A) (1.42)%(A)
Portfolio Turnover Rate 58% 31%
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) For the Period
Six Months Ended 7/1/99
Enterprise Internet Fund (Class B) June 30, 2000 through 12/31/99
--------------------------------------------------------------------------------------- ----------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 31.65 $ 10.00
--------- ---------
Net Investment Income (Loss) (0.33)(F) (0.18)(F)
Net Realized and Unrealized Gain (Loss) on Investments (3.35) 22.18
--------- ---------
Total from Investment Operations (3.68) 22.00
--------- ---------
Dividends from Net Investment Income -- --
Distributions from Capital Gains (0.10) (0.35)
--------- ---------
Total Distributions (0.10) (0.35)
--------- ---------
Net Asset Value End of Period $ 27.87 $ 31.65
========= =========
Total ReturnD (11.71)%(B) 220.09%(B)
Net Assets End of Period (in thousands) $ 180,695 $ 107,176
Ratio of Expenses to Average Net Assets 2.43%(A) 2.45%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 2.43%(A) 2.56%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (2.11)%(A) (1.85)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Reimbursement) (2.11)%(A) (1.96)%(A)
Portfolio Turnover Rate 58% 31%
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
102
--------------------------------------------------------------------------------
<PAGE>
Enterprise Internet Fund -- (Continued)
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) For the Period
Six Months Ended 7/1/99
Enterprise Internet Fund (Class C) June 30, 2000 through 12/31/99
--------------------------------------------------------------------------------------- ----------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 31.65 $ 10.00
--------- ---------
Net Investment Income (Loss) (0.33)(F) (0.17)(F)
Net Realized and Unrealized Gain (Loss) on Investments (3.38) 22.17
--------- ---------
Total from Investment Operations (3.71) 22.00
--------- ---------
Dividends from Net Investment Income -- --
Distributions from Capital Gains (0.10) (0.35)
--------- ---------
Total Distributions (0.10) (0.35)
--------- ---------
Net Asset Value End of Period $ 27.84 $ 31.65
========= =========
Total ReturnD (11.80)%(B) 220.09%(B)
Net Assets End of Period (in thousands) $ 61,796 $ 35,448
Ratio of Expenses to Average Net Assets 2.44%(A) 2.45%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 2.44%(A) 2.57%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (2.12)%(A) (1.84)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Reimbursement) (2.12)%(A) (1.96)%(A)
Portfolio Turnover Rate 58% 31%
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) For the Period
Six Months Ended 7/1/99
Enterprise Internet Fund (Class Y) June 30, 2000 through 12/31/99
--------------------------------------------------------------------------------------- ----------------- -----------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 31.82 $ 10.00
--------- ---------
Net Investment Income (Loss) (0.18)(F) (0.06)(F)
Net Realized and Unrealized Gain (Loss) on Investments (3.41) 22.23
--------- ---------
Total from Investment Operations (3.59) 22.17
--------- ---------
Dividends from Net Investment Income -- --
Distributions from Capital Gains (0.10) (0.35)
--------- ---------
Total Distributions (0.10) (0.35)
--------- ---------
Net Asset Value End of Period $ 28.13 $ 31.82
========= =========
Total Return (11.36)%(B) 221.79%(B)
Net Assets End of Period (in thousands) $ 1,111 $ 1,381
Ratio of Expenses to Average Net Assets 1.40%(A) 1.45%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 1.40%(A) 1.79%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (1.08)%(A) (0.68)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Reimbursement) (1.08)%(A) (1.02)%(A)
Portfolio Turnover Rate 58% 31%
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
103
--------------------------------------------------------------------------------
<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 December 31, 1999 10/1/98
Enterprise Global Financial Services Fund (Class A) June 30, 2000 Year Ended through 12/31/98
----------------------------------------------------------------------- ----------------- ------------------ -----------------
<S> <C> <C> <C>
Net Asset Value Beginning of Period $ 5.58 $ 6.05 $ 5.00
-------- ------- --------
Net Investment Income (Loss) 0.03(F) 0.06(F) 0.01
Net Realized and Unrealized Gain (Loss) on Investments (0.27) (0.37) 1.04
-------- ------- --------
Total from Investment Operations (0.24) (0.31) 1.05
-------- ------- --------
Dividends from Net Investment Income -- (0.04) --
Distributions from Capital Gains (0.02) (0.12) --
-------- ------- --------
Total Distributions (0.02) (0.16) --
-------- ------- --------
Net Asset Value End of Period $ 5.32 $ 5.58 $ 6.05
======== ======= ========
Total ReturnC (4.39)%(B) (5.01)% 21.00%(B)
Net Assets End of Period (in thousands) $ 11,469 $ 5,179 $ 1,426
Ratio of Expenses to Average Net Assets 1.75%(A) 1.75% 1.75%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 2.34%(A) 2.92% 6.58%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 1.34%(A) 1.00% 0.16%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding
Reimbursement) 0.75%(A) (0.17)% (4.68)%(A)
Portfolio Turnover Rate 13% 16% 2%
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) For the Period
Six Months Ended December 31, 1999 10/1/98
Enterprise Global Financial Services Fund (Class B) June 30, 2000 Year Ended through 12/31/98
----------------------------------------------------------------------- ----------------- ----------------- -----------------
<S> <C> <C> <C>
Net Asset Value Beginning of Period $ 5.55 $ 6.03 $ 5.00
-------- ------- --------
Net Investment Income (Loss) 0.02(F) 0.03(F) 0.01
Net Realized and Unrealized Gain (Loss) on Investments (0.27) (0.37) 1.02
-------- ------- --------
Total from Investment Operations (0.25) (0.34) 1.03
-------- ------- --------
Dividends from Net Investment Income -- (0.02) --
Distributions from Capital Gains (0.02) (0.12) --
-------- ------- --------
Total Distributions (0.02) (0.14) --
-------- ------- --------
Net Asset Value End of Period $ 5.28 $ 5.55 $ 6.03
======== ======= ========
Total ReturnD (4.60)%(B) (5.50)% 20.60%(B)
Net Assets End of Period (in thousands) $ 7,025 $ 4,661 $ 1,023
Ratio of Expenses to Average Net Assets 2.30%(A) 2.30% 2.30%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 2.90%(A) 3.49% 7.50%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.62%(A) 0.44% (0.49)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding
Reimbursement) 0.02%(A) (0.75)% (5.69)%(A)
Portfolio Turnover Rate 13% 16% 2%
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
104
--------------------------------------------------------------------------------
<PAGE>
Enterprise Global Financial Services Fund -- (Continued)
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) For the Period
Six Months Ended December 31, 1999 10/1/98
Enterprise Global Financial Services Fund (Class C) June 30, 2000 Year Ended through 12/31/98
----------------------------------------------------------------------- ----------------- ------------------ -----------------
<S> <C> <C> <C>
Net Asset Value Beginning of Period $ 5.56 $ 6.03 $ 5.00
-------- ------- --------
Net Investment Income (Loss) 0.03(F) 0.02(F) 0.01
Net Realized and Unrealized Gain (Loss) on Investments (0.29) (0.34) 1.02
-------- ------- --------
Total from Investment Operations (0.26) (0.32) 1.03
-------- ------- --------
Dividends from Net Investment Income -- (0.03) --
Distributions from Capital Gains (0.02) (0.12) --
-------- ------- --------
Total Distributions (0.02) (0.15) --
-------- ------- --------
Net Asset Value End of Period $ 5.28 $ 5.56 $ 6.03
======== ======= ========
Total ReturnD (4.77)%(B) (5.31)% 20.60%(B)
Net Assets End of Period (in thousands) $ 1,040 $ 718 $ 218
Ratio of Expenses to Average Net Assets 2.30%(A) 2.30% 2.30%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 2.91%(A) 3.50% 6.42%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.59%(A) 0.39% (0.33)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding
Reimbursement) (0.02)%(A) (0.81)% (4.45)%(A)
Portfolio Turnover Rate 13% 16% 2%
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) For the Period
Six Months Ended December 31, 1999 10/1/98
Enterprise Global Financial Services Fund (Class Y) June 30, 2000 Year Ended through 12/31/98
----------------------------------------------------------------------- ----------------- ----------------- -----------------
<S> <C> <C> <C>
Net Asset Value Beginning of Period $ 5.59 $ 6.05 $ 5.00
-------- ------- --------
Net Investment Income (Loss) 0.04(F) 0.10(F) 0.01
Net Realized and Unrealized Gain (Loss) on Investments (0.27) (0.38) 1.04
-------- ------- --------
Total from Investment Operations (0.23) (0.28) 1.05
-------- ------- --------
Dividends from Net Investment Income -- (0.06) --
Distributions from Capital Gains (0.02) (0.12) --
-------- ------- --------
Total Distributions (0.02) (0.18) --
-------- ------- --------
Net Asset Value End of Period $ 5.34 $ 5.59 $ 6.05
======== ======= ========
Total Return (4.21)%(B) (4.51)% 21.00%(B)
Net Assets End of Period (in thousands) $ 5,283 $ 5,477 $ 5,697
Ratio of Expenses to Average Net Assets 1.30%(A) 1.30% 1.30%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 1.94%(A) 2.57% 5.09%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 1.65%(A) 1.63% 0.61%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding
Reimbursement) 1.02%(A) 0.36% (3.18)%(A)
Portfolio Turnover Rate 13% 16% 2%
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
105
--------------------------------------------------------------------------------
<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, 2000 1999 1998 1997 1996 1995
------------------------------------------- ----------------- ------------ ------------ ------------ ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 9.06 $ 9.26 $ 9.25 $ 7.97 $ 6.70 $ 4.91
-------- ------- ------- ------- ------- -------
Net Investment Income (Loss) 0.03(F) 0.06(F) 0.06 0.04 0.06 0.04
Net Realized and Unrealized Gain (Loss) on
Investments (0.27) 0.61 0.58 1.64 1.41 1.81
-------- ------- ------- ------- ------- -------
Total from Investment Operations (0.24) 0.67 0.64 1.68 1.47 1.85
-------- ------- ------- ------- ------- -------
Dividends from Net Investment Income -- (0.06) (0.05) (0.04) (0.06) (0.03)
Distributions from Capital Gains (0.82) (0.81) (0.58) (0.36) (0.14) (0.03)
-------- -------- -------- -------- -------- -------
Total Distributions (0.82) (0.87) (0.63) (0.40) (0.20) (0.06)
-------- -------- -------- -------- -------- -------
Net Asset Value End of Period $ 8.00 $ 9.06 $ 9.26 $ 9.25 $ 7.97 $ 6.70
======== ======== ======== ======== ======== =======
Total Return(C) (2.86)%(B) 7.40% 7.05% 21.05% 22.08% 37.69%
Net Assets End of Period (in thousands) $111,680 $144,519 $175,084 $156,608 $101,022 $47,839
Ratio of Expenses to Average Net Assets 1.51%(A) 1.48% 1.50% 1.49% 1.57% 1.75%
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 1.53%(A) 1.48% 1.50% 1.49% 1.57% 1.90%
Ratio of Net Investment Income (Loss) to
Average Net Assets 0.74%(A) 0.60% 0.57% 0.47% 1.12% 1.09%
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) 0.73%(A) 0.60% 0.57% 0.47% 1.12% 0.94%
Portfolio Turnover Rate 13% 95% 43% 28% 33% 26%
</TABLE>
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------
(Unaudited) For the Period
Six Months Ended 5/1/95
Enterprise Managed Fund (Class B) June 30, 2000 1999 1998 1997 1996 through 12/31/95
---------------------------------------------------------- ------------ ------------ ------------- ----------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 8.96 $ 9.17 $ 9.19 $ 7.93 $ 6.68 $ 5.68
-------- ------- ------- ------- ------ -------
Net Investment Income (Loss) 0.01(F) 0.00(F, G) 0.00(G) (0.01) 0.02 0.01
Net Realized and Unrealized Gain
(Loss) on Investments (0.27) 0.61 0.57 1.63 1.41 1.05
-------- --------- ------- ------- ------ -------
Total from Investment Operations (0.26) 0.61 0.57 1.62 1.43 1.06
-------- --------- ------- ------- ------ -------
Dividends from Net Investment Income -- (0.01) (0.01) -- (0.04) (0.03)
Distributions from Capital Gains (0.82) (0.81) (0.58) (0.36) (0.14) (0.03)
-------- --------- -------- ------- ------- -------
Total Distributions (0.82) (0.82) (0.59) (0.36) (0.18) (0.06)
-------- --------- -------- ------- ------- -------
Net Asset Value End of Period $ 7.88 $ 8.96 $ 9.17 $ 9.19 $ 7.93 $ 6.68
======== ======== ======== ======= ======= =======
Total Return(D) (3.13)%(B) 6.75% 6.31% 20.45% 21.50% 18.38%(B)
Net Assets End of Period (in thousands) $116,564 $149,098 $161,552 $110,213 $57,037 $16,792
Ratio of Expenses to Average Net Assets 2.06%(A) 2.03% 2.05% 2.04% 2.13% 2.30%(A)
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 2.08%(A) 2.03% 2.05% 2.04% 2.13% 2.45%(A)
Ratio of Net Investment Income (Loss)
to Average Net Assets 0.20%(A) 0.04% 0.02% (0.09)% 0.52% 0.31%(A)
Ratio of Net Investment Income (Loss)
to Average Net Assets (Excluding
Reimbursement) 0.18%(A) 0.04% 0.02% (0.09)% 0.52% 0.14%(A)
Portfolio Turnover Rate 13% 95% 43% 28% 33% 26%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
106
--------------------------------------------------------------------------------
<PAGE>
Enterprise Managed Fund -- (Continued)
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period
Six Months Ended ------------------------ 5/1/97
Enterprise Managed Fund (Class C) June 30, 2000 1999 1998 through 12/31/97
------------------------------------------------------------------- ----------------- --------- ----------- -----------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 8.96 $ 9.09 $ 9.21 $ 8.24
-------- ------ ------- --------
Net Investment Income (Loss) 0.01(F) 0.00(F, G) (0.01) --
Net Realized and Unrealized Gain (Loss) on Investments (0.27) 0.68 0.49 1.38
-------- ------- ------- --------
Total from Investment Operations (0.26) 0.68 0.48 1.38
-------- ------- ------- --------
Dividends from Net Investment Income -- -- (0.02) (0.05)
Distributions from Capital Gains (0.82) (0.81) (0.58) (0.36)
-------- ------- ------- --------
Total Distributions (0.82) (0.81) (0.60) (0.41)
-------- ------- ------- --------
Net Asset Value End of Period $ 7.88 $ 8.96 $ 9.09 $ 9.21
======== ======= ======= ========
Total Return(D) (3.13)%(B) 7.64% 5.36% 16.74%(B)
Net Assets End of Period (in thousands) $ 7,820 $9,957 $11,654 $ 3,614
Ratio of Expenses to Average Net Assets 2.06%(A) 2.03% 2.05% 2.06%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 2.08%(A) 2.03% 2.05% 2.06%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.20%(A) 0.05% 0.02% (0.18)%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) 0.18%(A) 0.05% 0.02% (0.18)%(A)
Portfolio Turnover Rate 13% 95% 43% 28%(A)
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31,
Six Months Ended -----------------------------------------------
Enterprise Managed Fund (Class Y) June 30, 2000 1999 1998 1997 1996
------------------------------------------------- ----------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 9.05 $ 9.25 $ 9.27 $ 7.98 $ 6.70
--------- ------- ------- ------- -------
Net Investment Income (Loss) 0.05F 0.10(F) 0.10 0.08 0.09
Net Realized and Unrealized Gain (Loss) on
Investments (0.28) 0.62 0.55 1.64 1.42
--------- ------ ------ ------ ------
Total from Investment Operations (0.23) 0.72 0.65 1.72 1.51
--------- ------ ------ ------ ------
Dividends from Net Investment Income -- (0.11) (0.09) (0.07) (0.09)
Distributions from Capital Gains (0.82) (0.81) (0.58) (0.36) (0.14)
--------- ------- ------- ------- -------
Total Distributions (0.82) (0.92) (0.67) (0.43) (0.23)
--------- ------- ------- ------- -------
Net Asset Value End of Period $ 8.00 $ 9.05 $ 9.25 $ 9.27 $ 7.98
========= ======= ======= ======= =======
Total Return (2.75)%(B) 7.94% 7.20% 21.60% 22.63%
Net Assets End of Period (in thousands) $ 60,529 $81,090 $89,084 $80,879 $57,794
Ratio of Expenses to Average Net Assets 1.06%(A) 1.03% 1.05% 1.04% 1.12%
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 1.07%(A) 1.03% 1.05% 1.04% 1.12%
Ratio of Net Investment Income (Loss) to Average
Net Assets 1.20%(A) 1.04% 1.01% 0.92% 1.57%
Ratio of Net Investment Income (Loss) to Average
Net Assets (Excluding Reimbursement) 1.18%(A) 1.04% 1.01% 0.92% 1.57%
Portfolio Turnover Rate 13% 95% 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 Reimbursement) 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 Reimbursement) 1.28%(A)
Portfolio Turnover Rate 26%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
107
--------------------------------------------------------------------------------
<PAGE>
Enterprise Balanced Fund
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) For the Period
Six Months Ended 7/1/99 through
Enterprise Balanced Fund (Class A) June 30, 2000 12/31/99
--------------------------------------------------------------------------------------- ----------------- ---------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 5.35 $ 5.00
-------- --------
Net Investment Income (Loss) 0.04(F) 0.03(F)
Net Realized and Unrealized Gain (Loss) on Investments (0.05) 0.34
-------- --------
Total from Investment Operations (0.01) 0.37
-------- --------
Dividends from Net Investment Income (0.02) (0.02)
Distributions from Capital Gains (0.05) --
-------- --------
Total Distributions (0.07) (0.02)
-------- --------
Net Asset Value End of Period $ 5.27 $ 5.35
======== ========
Total Return(C) (0.23)%(B) 7.53%(B)
Net Assets End of Period (in thousands) $ 6,062 $ 4,946
Ratio of Expenses to Average Net Assets 1.40%(A) 1.40%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 2.61%(A) 4.79%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 1.48%(A) 1.33%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Reimbursement) 0.27%(A) (2.05)%(A)
Portfolio Turnover Rate 26% 20%
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) For the Period
Six Months Ended 7/1/99 through
Enterprise Balanced Fund (Class B) June 30, 2000 12/31/99
--------------------------------------------------------------------------------------- ----------------- ---------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 5.35 $ 5.00
-------- --------
Net Investment Income (Loss) 0.02(F) 0.02(F)
Net Realized and Unrealized Gain (Loss) on Investments (0.06) 0.35
-------- --------
Total from Investment Operations (0.04) 0.37
-------- --------
Dividends from Net Investment Income (0.01) (0.02)
Distributions from Capital Gains (0.05) --
-------- --------
Total Distributions (0.06) (0.02)
-------- --------
Net Asset Value End of Period $ 5.25 $ 5.35
======== ========
Total Return(D) (0.73)%(B) 7.36%(B)
Net Assets End of Period (in thousands) $ 5,591 $ 4,409
Ratio of Expenses to Average Net Assets 1.95%(A) 1.95%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 3.15%(A) 4.87%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.93%(A) 0.79%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Reimbursement) (0.26)%(A) (2.12)%(A
Portfolio Turnover Rate 26% 20%)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
108
--------------------------------------------------------------------------------
<PAGE>
Enterprise Balanced Fund -- (Continued)
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) For the Period
Six Months Ended 7/1/99 through
Enterprise Balanced Fund (Class C) June 30, 2000 12/31/99
--------------------------------------------------------------------------------------- ----------------- ---------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 5.35 $ 5.00
-------- --------
Net Investment Income (Loss) 0.02(F) 0.02(F)
Net Realized and Unrealized Gain (Loss) on Investments (0.05) 0.34
-------- --------
Total from Investment Operations (0.03) 0.36
-------- --------
Dividends from Net Investment Income (0.01) (0.01)
Distributions from Capital Gains (0.05) --
-------- --------
Total Distributions (0.06) (0.01)
-------- --------
Net Asset Value End of Period $ 5.26 $ 5.35
======== ========
Total Return(D) (0.52)%(B) 7.32%(B)
Net Assets End of Period (in thousands) $ 1,166 $ 701
Ratio of Expenses to Average Net Assets 1.95%(A) 1.95%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 3.11%(A) 5.33%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 0.94%(A) 0.78%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Reimbursement) (0.22)%(A) (2.60)%(A)
Portfolio Turnover Rate 26% 20%
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) For the Period
Six Months Ended 7/1/99 through
Enterprise Balanced Fund (Class Y) June 30, 2000 12/31/99
--------------------------------------------------------------------------------------- ----------------- ---------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 5.36 $ 5.00
-------- --------
Net Investment Income (Loss) 0.05(F) 0.05(F)
Net Realized and Unrealized Gain (Loss) on Investments (0.06) 0.34
-------- --------
Total from Investment Operations (0.01) 0.39
-------- --------
Dividends from Net Investment Income (0.02) (0.03)
Distributions from Capital Gains (0.05) --
-------- --------
Total Distributions (0.07) (0.03)
-------- --------
Net Asset Value End of Period $ 5.28 $ 5.36
======== ========
Total Return (0.12)%(B) 7.91%(B)
Net Assets End of Period (in thousands) $ 107 $ 109
Ratio of Expenses to Average Net Assets 0.95%(A) 0.95%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 2.15%(A) 6.06%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 1.92%(A) 1.74%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Reimbursement) 0.71%(A) (3.36)%(A)
Portfolio Turnover Rate 26% 20%
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
109
--------------------------------------------------------------------------------
<PAGE>
Enterprise High-Yield Bond Fund
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31,
Six Months Ended -----------------------------------------------------------
Enterprise High-Yield Bond Fund (Class A) June 30, 2000 1999 1998 1997 1996 1995
--------------------------------------------------- ----------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 10.99 $ 11.53 $ 12.35 $ 11.84 $ 11.39 $ 10.72
-------- ------- ------- ------- ------- -------
Net Investment Income (Loss) 0.47(F) 0.94(F) 0.94 0.99 0.94 0.99
Net Realized and Unrealized Gain (Loss) on
Investments (0.56) (0.53) (0.66) 0.51 0.45 0.67
-------- ------- ------- ------- ------- -------
Total from Investment Operations (0.09) 0.41 0.28 1.50 1.39 1.66
-------- ------- ------- ------- ------- -------
Dividends from Net Investment Income (0.47) (0.94) (0.94) (0.99) (0.94) (0.99)
Distributions from Capital Gains -- (0.01) (0.16) -- -- --
-------- ------- ------- ------- ------- -------
Total Distributions (0.47) (0.95) (1.10) (0.99) (0.94) (0.99)
-------- ------- ------- ------- ------- -------
Net Asset Value End of Period $ 10.43 $ 10.99 $ 11.53 $ 12.35 $ 11.84 $ 11.39
======== ======= ======= ======= ======= =======
Total Return(C) (0.78)%(B) 3.64% 2.29% 13.18% 12.78% 16.00%
Net Assets End of Period (in thousands) $ 57,568 $64,038 $72,637 $66,422 $54,129 $52,182
Ratio of Expenses to Average Net Assets 1.30%(A) 1.30% 1.30% 1.30% 1.30% 1.30%
Ratio of Expenses to Average Net Assets (Excluding
Reimbursement) 1.44%(A) 1.41% 1.44% 1.47% 1.50% 1.52%
Ratio of Net Investment Income (Loss) to Average
Net Assets 8.90%(A) 8.30% 7.72% 8.20% 8.21% 8.80%
Ratio of Net Investment Income (Loss) to Average
Net Assets (Excluding Reimbursement) 8.76%(A) 8.18% 7.58% 8.03% 8.01% 8.58%
Portfolio Turnover Rate 35% 84% 114% 175% 180% 89%
</TABLE>
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------------
(Unaudited) For the Period
Six Months Ended 5/1/95
Enterprise High-Yield Bond Fund (Class B) June 30, 2000 1999 1998 1997 1996 through 12/31/95
------------------------------------------- ----------------- ----------- ----------- ----------- ----------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 10.99 $ 11.52 $ 12.35 $ 11.84 $ 11.39 $ 11.11
-------- ------- ------- ------- ------- -------
Net Investment Income (Loss) 0.44(F) 0.88(F) 0.87 0.77 0.88 0.61
Net Realized and Unrealized Gain (Loss) on
Investments (0.56) (0.52) (0.67) 0.51 0.45 0.28
-------- ------- ------- ------- ------- -------
Total from Investment Operations (0.12) 0.36 0.20 1.28 1.33 0.89
-------- ------- ------- ------- ------- -------
Dividends from Net Investment Income (0.44) (0.88) (0.87) (0.77) (0.88) (0.61)
Distributions from Capital Gains -- (0.01) (0.16) -- -- --
-------- ------- ------- ------- -------- -------
Total Distributions (0.44) (0.89) (1.03) (0.77) (0.88) (0.61)
-------- ------- ------- ------- -------- -------
Net Asset Value End of Period $ 10.43 $ 10.99 $ 11.52 $ 12.35 $ 11.84 $ 11.39
======== ======= ======= ======= ======== =======
Total Return(D) (1.05)%(B) 3.18% 1.64% 12.59% 12.16% 8.12%(B)
Net Assets End of Period (in thousands) $ 33,068 $36,673 $35,495 $19,898 $ 7,892 $ 2,951
Ratio of Expenses to Average Net Assets 1.85%(A) 1.85% 1.85% 1.85% 1.85% 1.85%(A)
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 1.99%(A) 1.96% 1.99% 2.02% 2.05% 2.09%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets 8.35%(A) 7.75% 7.20% 7.51% 7.74% 7.84%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) 8.22%(A) 7.64% 7.06% 7.35% 7.55% 7.68%(A)
Portfolio Turnover Rate 35% 84% 114% 175% 180% 89%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
110
--------------------------------------------------------------------------------
<PAGE>
Enterprise High-Yield Bond Fund -- (Continued)
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period
Six Months Ended ----------------------- 5/1/97
Enterprise High-Yield Bond Fund (Class C) June 30, 2000 1999 1998 through 12/31/97
------------------------------------------------------------------- ----------------- ----------- ----------- -----------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 10.99 $ 11.53 $ 12.35 $ 11.71
-------- ------- ------- -------
Net Investment Income (Loss) 0.44(F) 0.88(F) 0.87 0.61
Net Realized and Unrealized Gain (Loss) on Investments (0.56) (0.53) (0.66) 0.64
-------- -------- -------- -------
Total from Investment Operations (0.12) 0.35 0.21 1.25
-------- -------- -------- -------
Dividends from Net Investment Income (0.44) (0.88) (0.87) (0.61)
Distributions from Capital Gains -- (0.01) (0.16) --
-------- -------- -------- -------
Total Distributions (0.44) (0.89) (1.03) (0.61)
-------- -------- -------- -------
Net Asset Value End of Period $ 10.43 $ 10.99 $ 11.53 $ 12.35
======== ======== ======== =======
Total Return(D) (1.05)%(B) 3.09% 1.72% 10.87%(B)
Net Assets End of Period (in thousands) $ 7,326 $ 6,841 $ 5,392 $ 1,463
Ratio of Expenses to Average Net Assets 1.85%(A) 1.85% 1.85% 1.85%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 1.99%(A) 1.96% 1.99% 2.01%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 8.37%(A) 7.73% 7.27% 6.84%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) 8.23%(A) 7.62% 7.13% 6.68%(A)
Portfolio Turnover Rate 35% 84% 114% 175%(A)
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period
Six Months Ended ----------------------- 7/25/97
Enterprise High-Yield Bond Fund (Class Y) June 30, 2000 1999 1998 through 12/31/97
------------------------------------------------------------------- ----------------- ----------- ----------- -----------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 10.99 $ 11.51 $ 12.35 $ 12.17
-------- ------- ------- -------
Net Investment Income (Loss) 0.50(F) 0.99(F) 0.99 0.67
Net Realized and Unrealized Gain (Loss) on Investments (0.56) (0.51) (0.68) 0.18
-------- -------- -------- -------
Total from Investment Operations (0.06) 0.48 0.31 0.85
-------- -------- -------- -------
Dividends from Net Investment Income (0.50) (0.99) (0.99) (0.67)
Distributions from Capital Gains -- (0.01) (0.16) --
-------- -------- -------- -------
Total Distributions (0.50) (1.00) (1.15) (0.67)
-------- -------- -------- -------
Net Asset Value End of Period $ 10.43 $ 10.99 $ 11.51 $ 12.35
======== ======== ======== =======
Total Return (0.56)%(B) 4.30% 2.49% 5.24%(B)
Net Assets End of Period (in thousands) $ 1,156 $ 1,179 $ 2,032 $ 809
Ratio of Expenses to Average Net Assets 0.85%(A) 0.85% 0.85% 0.85%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 0.99%(A) 0.96% 1.00% 1.02%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 9.37%(A) 8.73% 8.30% 8.26%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) 9.24%(A) 8.62% 8.16% 8.09%(A)
Portfolio Turnover Rate 35% 84% 114% 175%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
111
--------------------------------------------------------------------------------
<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, 2000
-------------------------------------------------------- -----------------
<S> <C>
Net Asset Value Beginning of Period $ 11.57
-------
Net Investment Income (Loss) 0.33(F)
Net Realized and Unrealized Gain (Loss) on Investments 0.03
-------
Total from Investment Operations 0.36
-------
Dividends from Net Investment Income (0.33)
Distributions from Capital Gains --
-------
Total Distributions (0.33)
-------
Net Asset Value End of Period $ 11.60
=======
Total Return(C) 3.17%(B)
Net Assets End of Period (in thousands) $70,160
Ratio of Expenses to Average Net Assets 1.30%(A)
Ratio of Expenses to Average Net Assets (Excluding
Reimbursement) 1.41%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets 5.75%(A)
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Reimbursement) 5.64%(A)
Portfolio Turnover Rate 7%
<CAPTION>
Year Ended December 31,
-----------------------------------------------------------
Enterprise Government Securities Fund (Class A) 1999 1998 1997 1996 1995
-------------------------------------------------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 12.15 $ 12.03 $ 11.80 $ 11.83 $ 10.62
------- ------- ------- ------- -------
Net Investment Income (Loss) 0.65(F) 0.68 0.73 0.74 0.76
Net Realized and Unrealized Gain (Loss) on Investments (0.58) 0.12 0.23 (0.03) 1.21
------- ------- ------- ------- -------
Total from Investment Operations 0.07 0.80 0.96 0.71 1.97
------- ------- ------- ------- -------
Dividends from Net Investment Income (0.65) (0.68) (0.73) (0.74) (0.76)
Distributions from Capital Gains -- -- -- -- --
------- ------- ------- ------- -------
Total Distributions (0.65) (0.68) (0.73) (0.74) (0.76)
------- ------- ------- ------- -------
Net Asset Value End of Period $ 11.57 $ 12.15 $ 12.03 $ 11.80 $ 11.83
======= ======= ======= ======= =======
Total Return(C) 0.58% 6.82% 8.39% 6.29% 19.00%
Net Assets End of Period (in thousands) $73,706 $71,609 $68,639 $73,693 $86,224
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
Reimbursement) 1.39% 1.38% 1.46% 1.42% 1.44%
Ratio of Net Investment Income (Loss) to Average Net
Assets 5.46% 5.61% 6.16% 6.35% 6.66%
Ratio of Net Investment Income (Loss) to Average Net
Assets (Excluding Reimbursement) 5.37% 5.53% 6.00% 6.23% 6.52%
Portfolio Turnover Rate 11% 8% 10% 0% 0%
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31,
Six Months Ended -----------------------------------------------
Enterprise Government Securities Fund (Class B) June 30, 2000 1999 1998 1997 1996
--------------------------------------------------- ----------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 11.57 $ 12.14 $ 12.02 $ 11.79 $ 11.83
------- ------- ------- ------- -------
Net Investment Income (Loss) 0.30(F) 0.58(F) 0.61 0.66 0.68
Net Realized and Unrealized Gain (Loss) on
Investments 0.03 (0.57) 0.12 0.23 (0.04)
------- ------- ------- ------- --------
Total from Investment Operations 0.33 0.01 0.73 0.89 0.64
------- ------- ------- ------- --------
Dividends from Net Investment Income (0.30) (0.58) (0.61) (0.66) (0.68)
Distributions from Capital Gains -- -- -- -- --
------- ------- ------- ------- --------
Total Distributions (0.30) (0.58) (0.61) (0.66) (0.68)
------- ------- ------- ------- --------
Net Asset Value End of Period $ 11.60 $ 11.57 $ 12.14 $ 12.02 $ 11.79
======= ======= ======= ======= ========
Total Return(D) 2.89%(B) 0.12% 6.24% 7.81% 5.61%
Net Assets End of Period (in thousands) $34,837 $36,876 $27,134 $12,285 $ 5,683
Ratio of Expenses to Average Net Assets 1.85%(A) 1.85% 1.85% 1.85% 1.85%
Ratio of Expenses to Average Net Assets (Excluding
Reimbursement) 1.96%(A) 1.95% 1.93% 2.01% 1.96%
Ratio of Net Investment Income (Loss) to Average
Net Assets 5.21%(A) 4.92% 5.00% 5.55% 5.79%
Ratio of Net Investment Income (Loss) to Average
Net Assets (Excluding Reimbursement) 5.10%(A) 4.82% 4.91% 5.39% 5.68%
Portfolio Turnover Rate 7% 11% 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
Reimbursement) 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 Reimbursement) 5.58%(A)
Portfolio Turnover Rate 0%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
112
--------------------------------------------------------------------------------
<PAGE>
Enterprise Government Securities Fund -- (Continued)
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period
Six Months Ended ----------------------- 5/1/97
Enterprise Government Securities Fund (Class C) June 30, 2000 1999 1998 through 12/31/97
------------------------------------------------------------- ----------------- ----------- ----------- -----------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 11.57 $ 12.14 $ 12.03 $ 11.63
------- ------- ------- -------
Net Investment Income (Loss) 0.30(F) 0.58(F) 0.62 0.46
Net Realized and Unrealized Gain (Loss) on Investments 0.03 (0.57) 0.11 0.40
------- -------- ------- -------
Total from Investment Operations 0.33 0.01 0.73 0.86
------- -------- ------- -------
Dividends from Net Investment Income (0.30) (0.58) (0.62) (0.46)
Distributions from Capital Gains -- -- -- --
------- -------- -------- -------
Total Distributions (0.30) (0.58) (0.62) (0.46)
------- -------- -------- -------
Net Asset Value End of Period $ 11.60 $ 11.57 $ 12.14 $ 12.03
======= ======== ======== =======
Total Return(D) 2.89%(B) 0.12% 6.15% 7.49%(B)
Net Assets End of Period (in thousands) $ 6,760 $ 5,516 $ 3,089 $ 498
Ratio of Expenses to Average Net Assets 1.85%(A) 1.85% 1.85% 1.85%(A)
Ratio of Expenses to Average Net Assets (Excluding
Reimbursement) 1.96%(A) 1.95% 1.94% 2.03%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 5.18%(A) 4.92% 4.97% 5.39%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) 5.07%(A) 4.82% 4.88% 5.21%(A)
Portfolio Turnover Rate 7% 11% 8% 10%(A)
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period
Six Months Ended ----------------------- 7/17/97
Enterprise Government Securities Fund (Class Y) June 30, 2000 1999 1998 through 12/31/97
------------------------------------------------------------- ----------------- ----------- ----------- -----------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 11.56 $ 12.14 $ 12.02 $ 11.87
------- ------- ------- -------
Net Investment Income (Loss) 0.36(F) 0.70(F) 0.74 0.35
Net Realized and Unrealized Gain (Loss) on Investments 0.04 (0.58) 0.12 0.15
------- -------- ------- -------
Total from Investment Operations 0.40 0.12 0.86 0.50
------- -------- ------- -------
Dividends from Net Investment Income (0.36) (0.70) (0.74) (0.35)
Distributions from Capital Gains -- -- -- --
------- -------- -------- -------
Total Distributions (0.36) (0.70) (0.74) (0.35)
------- -------- -------- -------
Net Asset Value End of Period $ 11.60 $ 11.56 $ 12.14 $ 12.02
======= ======== ======== =======
Total Return 3.49%(B) 1.04% 7.30% 4.02%(B)
Net Assets End of Period (in thousands) $ 7,079 $ 6,212 $ 7,281 $ 7,569
Ratio of Expenses to Average Net Assets 0.85%(A) 0.85% 0.85% 0.85%(A)
Ratio of Expenses to Average Net Assets (Excluding
Reimbursement) 0.96%(A) 0.94% 0.93% 1.02%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 6.22%(A) 5.92% 6.06% 6.40%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) 6.11%(A) 5.83% 5.98% 6.23%(A)
Portfolio Turnover Rate 7% 11% 8% 10%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
113
--------------------------------------------------------------------------------
<PAGE>
Enterprise Tax-Exempt Income Fund
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31,
Six Months Ended -----------------------------------------------------------
Enterprise Tax-Exempt Income Fund (Class A) June 30, 2000 1999 1998 1997 1996 1995
--------------------------------------------------- ----------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 12.82 $ 13.84 $ 13.95 $ 13.83 $ 13.99 $ 12.80
------- ------- ------- ------- ------- -------
Net Investment Income (Loss) 0.28(F) 0.54(F) 0.60 0.63 0.64 0.65
Net Realized and Unrealized Gain (Loss) on
Investments 0.19 (0.92) 0.20 0.31 (0.16) 1.21
------- ------- ------- ------- ------- -------
Total from Investment Operations 0.47 (0.38) 0.80 0.94 0.48 1.86
------- ------- ------- ------- ------- -------
Dividends from Net Investment Income (0.28) (0.54) (0.60) (0.63) (0.64) (0.65)
Distributions from Capital Gains -- (0.10) (0.31) (0.19) -- (0.02)
------- ------- ------- ------- ------- -------
Total Distributions (0.28) (0.64) (0.91) (0.82) (0.64) (0.67)
------- ------- ------- ------- ------- -------
Net Asset Value End of Period $ 13.01 $ 12.82 $ 13.84 $ 13.95 $ 13.83 $ 13.99
======= ======= ======= ======= ======= =======
Total Return(C) 3.68%(B) (2.76)% 5.92% 6.96% 3.53% 14.85%
Net Assets End of Period (in thousands) $20,263 $21,703 $23,710 $23,695 $28,478 $33,626
Ratio of Expenses to Average Net Assets 1.10%(A) 1.10% 1.10% 1.22% 1.25% 1.25%
Ratio of Expenses to Average Net Assets (Excluding
Reimbursement) 1.39%(A) 1.44% 1.40% 1.60% 1.41% 1.42%
Ratio of Net Investment Income (Loss) to Average
Net Assets 4.32%(A) 4.05% 4.30% 4.50% 4.64% 4.82%
Ratio of Net Investment Income (Loss) to Average
Net Assets (Excluding Reimbursement) 4.03%A 3.71% 4.00% 4.12% 4.48% 4.65%
Portfolio Turnover Rate 4% 110% 100% 1% 1% 1%
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31,
Six Months Ended -----------------------------------------------
Enterprise Tax-Exempt Income Fund (Class B) June 30, 2000 1999 1998 1997 1996
------------------------------------------------- ----------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 12.82 $ 13.84 $ 13.95 $ 13.83 $ 13.99
-------- -------- ------- ------- -------
Net Investment Income (Loss) 0.24(F) 0.47(F) 0.53 0.55 0.56
Net Realized and Unrealized Gain (Loss) on
Investments 0.19 (0.92) 0.20 0.31 (0.16)
-------- -------- ------- ------- --------
Total from Investment Operations 0.43 (0.45) 0.73 0.86 0.40
-------- -------- ------- ------- --------
Dividends from Net Investment Income (0.24) (0.47) (0.53) (0.55) (0.56)
Distributions from Capital Gains -- (0.10) (0.31) (0.19) --
-------- -------- -------- -------- --------
Total Distributions (0.24) (0.57) (0.84) (0.74) (0.56)
-------- -------- -------- -------- --------
Net Asset Value End of Period $ 13.01 $ 12.82 $ 13.84 $ 13.95 $ 13.83
======== ======== ======== ======== ========
Total Return(D) 3.40%(B) (3.29)% 5.33% 6.36% 2.96%
Net Assets End of Period (in thousands) $ 5,437 $ 5,640 $ 4,451 $ 2,883 $ 2,037
Ratio of Expenses to Average Net Assets 1.65%(A) 1.65% 1.65% 1.76% 1.80%
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 1.94%(A) 1.99% 1.96% 2.16% 1.96%
Ratio of Net Investment Income (Loss) to Average
Net Assets 3.77%(A) 3.51% 3.71% 3.94% 4.07%
Ratio of Net Investment Income (Loss) to Average
Net Assets (Excluding Reimbursement) 3.48%(A) 3.16% 3.41% 3.54% 3.92%
Portfolio Turnover Rate 4% 110% 100% 1% 1%
<CAPTION>
For the Period
5/1/95
Enterprise Tax-Exempt Income Fund (Class B) through 12/31/95
------------------------------------------------- -----------------
<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 Reimbursement) 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 Reimbursement) 3.94%(A)
Portfolio Turnover Rate 1%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
114
--------------------------------------------------------------------------------
<PAGE>
Enterprise Tax-Exempt Income Fund -- (Continued)
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period
Six Months Ended ----------------------- 5/1/97
Enterprise Tax-Exempt Income Fund (Class C) June 30, 2000 1999 1998 through 12/31/97
------------------------------------------------------------------- ----------------- ----------- ----------- -----------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 12.82 $ 13.84 $ 13.95 $ 13.68
------- ------- ------- -------
Net Investment Income (Loss) 0.24(F) 0.47(F) 0.53 0.36
Net Realized and Unrealized Gain (Loss) on Investments 0.19 (0.92) 0.20 0.46
------- ------- ------- -------
Total from Investment Operations 0.43 (0.45) 0.73 0.82
------- ------- ------- -------
Dividends from Net Investment Income (0.24) (0.47) (0.53) (0.36)
Distributions from Capital Gains -- (0.10) (0.31) (0.19)
------- ------- -------- -------
Total Distributions (0.24) (0.57) (0.84) (0.55)
------- ------- -------- -------
Net Asset Value End of Period $ 13.01 $ 12.82 $ 13.84 $ 13.95
======= ======= ======== =======
Total Return(D) 3.32%(B) (3.23)% 5.34% 6.14%(B)
Net Assets End of Period (in thousands) $ 1,173 $ 1,706 $ 777 $ 184
Ratio of Expenses to Average Net Assets 1.65%(A) 1.65% 1.65% 1.67%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 1.95%(A) 1.97% 1.93% 2.34%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 3.77%(A) 3.54% 3.71% 3.99%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) 3.47%(A) 3.22% 3.43% 3.32%(A)
Portfolio Turnover Rate 4% 110% 100% 1%(A)
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) For the Period
Six Months Ended December 31, 1999 11/17/98
Enterprise Tax-Exempt Income Fund (Class Y) June 30, 2000 Year Ended through 12/31/98
----------------------------------------------------------------------- ----------------- ----------------- -----------------
<S> <C> <C> <C>
Net Asset Value Beginning of Period $ 12.82 $ 13.84 $ 14.12
------- ------- -------
Net Investment Income (Loss) 0.31(F) 0.61(F) 0.07
Net Realized and Unrealized Gain (Loss) on Investments 0.19 (0.92) 0.03
------- ------- -------
Total from Investment Operations 0.50 (0.31) 0.10
------- ------- -------
Dividends from Net Investment Income (0.31) (0.61) (0.07)
Distributions from Capital Gains -- (0.10) (0.31)
------- ------- -------
Total Distributions (0.31) (0.71) (0.38)
------- ------- -------
Net Asset Value End of Period $ 13.01 $ 12.82 $ 13.84
======= ======= =======
Total Return 3.91%(B) (2.32)% 0.75%(B)
Net Assets End of Period (in thousands) $ 46 $ 61 $ 65
Ratio of Expenses to Average Net Assets 0.65%(A) 0.65% 0.65%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 0.94%(A) 0.99% 0.95%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 4.77%(A) 4.51% 4.75%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding
Reimbursement) 4.48%(A) 4.18% 4.45%(A)
Portfolio Turnover Rate 4% 110% 100%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
115
--------------------------------------------------------------------------------
<PAGE>
Enterprise Money Market Fund
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) For the Year Ended December 31,
Six Months Ended ------------------------------------------------------------
Enterprise Money Market Fund (Class A) June 30, 2000 1999 1998 1997 1996 1995
------------------------------------------------- ----------------- ------------ ------------ ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- ------- ------ ------- ------
Net Investment Income (Loss) 0.03(F) 0.05(F) 0.05 0.05 0.04 0.05
-------- -------- ------- ------ ------- ------
Total from Investment Operations 0.03 0.05 0.05 0.05 0.04 0.05
-------- -------- ------- ------ ------- ------
Dividends from Net Investment Income (0.03) (0.05) (0.05) (0.05) (0.04) (0.05)
-------- -------- -------- ------- ------- -------
Total Distributions (0.03) (0.05) (0.05) (0.05) (0.04) (0.05)
-------- -------- -------- ------- ------- -------
Net Asset Value End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======= ======= =======
Total Return 2.81%(B) 4.80% 5.04% 4.69% 4.51% 5.05%
Net Assets End of Period (in thousands) $199,184 $204,403 $140,490 $68,466 $59,074 $40,325
Ratio of Expenses to Average Net Assets 0.61%(A) 0.59% 0.64% 1.00% 1.00% 1.00%
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 0.61%(A) 0.59% 0.64% 1.24% 1.18% 1.35%
Ratio of Net Investment Income (Loss) to Average
Net Assets 5.59%(A) 4.74% 4.91% 4.59% 4.42% 4.92%
Ratio of Net Investment Income (Loss) to Average
Net Assets (Excluding Reimbursement) 5.59%(A) 4.74% 4.91% 4.35% 4.24% 4.57%
</TABLE>
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------
(Unaudited) For the Period
Six Months Ended 5/1/95
Enterprise Money Market Fund (Class B) June 30, 2000 1999 1998 1997 1996 through 12/31/95
----------------------------------------- ----------------- ----------- ----------- ---------- ---------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
Net Investment Income (Loss) 0.03(F) 0.05(F) 0.05 0.04 0.04 0.03
------- ------- ------- ------- ------- -------
Total from Investment Operations 0.03 0.05 0.05 0.04 0.04 0.03
------- ------- ------- ------- ------- -------
Dividends from Net Investment Income (0.03) (0.05) (0.05) (0.04) (0.04) (0.03)
------- ------- ------- ------- ------- -------
Total Distributions (0.03) (0.05) (0.05) (0.04) (0.04) (0.03)
------- ------- ------- ------- ------- -------
Net Asset Value End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total Return(D) 2.81%(B) 4.80% 5.04% 4.11% 3.94% 2.95%(B)
Net Assets End of Period (in thousands) $21,833 $32,863 $10,147 $ 5,980 $ 1,344 $ 394
Ratio of Expenses to Average Net Assets 0.61%(A) 0.60% 0.64% 1.55% 1.55% 1.55%(A)
Ratio of Expenses to Average Net Assets
(Excluding Reimbursement) 0.61%(A) 0.60% 0.64% 1.79% 1.73% 1.88%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets 5.59%(A) 4.86% 4.91% 4.09% 3.85% 4.23%(A)
Ratio of Net Investment Income (Loss) to
Average Net Assets (Excluding
Reimbursement) 5.59%(A) 4.86% 4.91% 3.85% 3.68% 3.90%(A)
</TABLE>
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
116
--------------------------------------------------------------------------------
<PAGE>
Enterprise Money Market Fund -- (Continued)
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period
Six Months Ended --------------------- 5/1/97
Enterprise Money Market Fund (Class C) June 30, 2000 1999 1998 through 12/31/97
------------------------------------------------------------------- ----------------- ---------- ---------- -----------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- -------
Net Investment Income (Loss) 0.03(F) 0.05(F) 0.05 0.02
------- ------- ------- -------
Total from Investment Operations 0.03 0.05 0.05 0.02
------- ------- ------- -------
Dividends from Net Investment Income (0.03) (0.05) (0.05) (0.02)
------- ------- ------- -------
Total Distributions (0.03) (0.05) (0.05) (0.02)
------- ------- ------- -------
Net Asset Value End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= =======
Total Return(D) 2.81%(B) 4.80% 5.04% 2.86%(B)
Net Assets End of Period (in thousands) $ 8,191 $ 7,296 $ 4,680 $ 1,021
Ratio of Expenses to Average Net Assets 0.61%(A) 0.59% 0.63% 1.55%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 0.61%(A) 0.59% 0.63% 1.85%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 5.59%(A) 4.76% 4.90% 4.15%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) 5.59%(A) 4.76% 4.90% 3.85%(A)
</TABLE>
<TABLE>
<CAPTION>
(Unaudited) Year Ended December 31, For the Period
Six Months Ended --------------------- 7/17/97
Enterprise Money Market Fund (Class Y) June 30, 2000 1999 1998 through 12/31/97
------------------------------------------------------------------- ----------------- ---------- ---------- -----------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------ ------ -------
Net Investment Income (Loss) 0.03(F) 0.05(F) 0.05 0.02
------- ------ ------ -------
Total from Investment Operations 0.03 0.05 0.05 0.02
------- ------ ------ -------
Dividends from Net Investment Income (0.03) (0.05) (0.05) (0.02)
------- ------ ------ -------
Total Distributions (0.03) (0.05) (0.05) (0.02)
------- ------ ------ -------
Net Asset Value End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ====== ====== =======
Total Return 2.81%(B) 4.80% 5.04% 2.31%(B)
Net Assets End of Period (in thousands) $ 2,506 $3,477 $3,413 $ 2,700
Ratio of Expenses to Average Net Assets 0.61%(A) 0.59% 0.65% 0.70%(A)
Ratio of Expenses to Average Net Assets (Excluding Reimbursement) 0.61%(A) 0.59% 0.65% 0.95%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets 5.59%(A) 4.72% 4.92% 4.96%(A)
Ratio of Net Investment Income (Loss) to Average Net Assets
(Excluding Reimbursement) 5.59%(A) 4.72% 4.92% 4.71%(A)
</TABLE>
(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) Ratio includes expenses paid indirectly.
(F) Based on average monthly shares outstanding for the period.
(G) Less than $0.01 per share.
See notes to financial statements.
THE ENTERPRISE Group of Funds, Inc.
117
--------------------------------------------------------------------------------
<PAGE>
Notes to Financial Statements
June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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 Multi-Cap Growth, Small Company Growth, Small Company Value, Growth, Capital
Appreciation, Equity, Growth and Income, Equity Income, International Growth,
Internet, International Internet (commenced operations on June 30, 2000), Global
Financial Services, Managed, Balanced, High-Yield Bond, Government Securities,
Tax-Exempt Income 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 (except for the Money Market Fund)
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.
On June 30, 2000, EGF added the International Internet Fund. The fund commenced
with a beginning NAV for each class of $10.00 per share. At June 30, 2000 the
net assets totaled $13,896,325 as follows:
<TABLE>
<S> <C>
Class A $5,660,736
Class B 5,798,390
Class C 1,790,168
Class Y 647,031
</TABLE>
At June 30, 2000 the assets of the fund referred to above consisted of cash of
$1,000,000 and receivable for fund shares sold of $12,896,325, and the closing
NAV per share for each class remained at $10.00. These net assets represented
total subscriptions through June 30, 2000; there were no redemptions.
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. 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.
Short-term debt securities with 61 days or more to maturity at time of purchase
are valued at market value through the 61st day prior to maturity, based on
quotations received from market makers or other appropriate sources; thereafter,
any unrealized appreciation or depreciation existing on the 61st day is
amortized to par on a straight-line basis over the remaining number of days to
maturity. Short-term securities with 60 days or less to maturity at time of
purchase are valued at amortized cost, which approximates market value.
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 to par 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.
THE ENTERPRISE Group of Funds, Inc.
118
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
Notes to Financial Statements -- (Continued)
June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Special Valuation Risks -- Foreign denominated assets held by the International
Growth, International Internet and Global Financial Services Funds may involve
risks not typically associated with domestic transactions including, but not
limited to, unanticipated movements in exchange rates, the degree of government
supervision and regulation of security markets and the possibility of economic
instability.
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, U.S. Government
securities whose market value is at least equal to the repurchase price.
Written Options -- When a fund writes an option, an amount equal to the premium
received by the fund is recorded as a liability and is subsequently adjusted to
the current market value of the option written. Premiums received from writing
options that expire unexercised are treated as realized gains from investments.
The difference between the premium and the amount paid on effecting a closing
purchase transaction is also treated as a realized gain. If the premium is less
than the amount paid for the closing purchase transaction, a realized loss is
recorded. If a call option is exercised, the premium is added to the proceeds
from the sale of the underlying security in determining whether the fund has
realized a gain or loss. The risk associated with writing call options is that
the fund may forego the opportunity for a profit if the market value of the
underlying security increases and the option is exercised.
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 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.
As part of its investment program, EGF may enter into futures contracts (up to
prospectus defined limitations) to hedge against anticipated future price and
interest rate changes. Risks of entering into future 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 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 as well as interest rates.
THE ENTERPRISE Group of Funds, Inc.
119
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
Notes to Financial Statements -- (Continued)
June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Foreign Currency Translation -- Securities, other assets and liabilities of the
International Growth, International Internet and Global Financial Services Funds
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. These funds 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.
Forward Foreign Currency Contracts -- As part of each fund's investment program,
the International Growth, International Internet and Global Financial Services
Funds 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. Risks arise from the possible inability of counter parties to
meet the terms of their contracts and from movements in currency values.
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 daily 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 accounting principles generally accepted
in the United States 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.
Dividends and Distributions -- Distributions of capital gains from each of the
funds, other than the Money Market Fund, are made at least annually. Dividends
from investment income of the Equity Funds as well as the Managed and Balanced
Funds are declared and paid at least annually. Dividends from investment income
for the Income Funds are declared daily and paid monthly. Dividends from
investment income and any net realized capital gains for the Money Market Fund
are declared daily and reinvested monthly in additional shares of the Money
Market Fund at net asset value.
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, 2001, 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 "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,
THE ENTERPRISE Group of Funds, Inc.
120
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--------------------------------------------------------------------------------
<PAGE>
Notes to Financial Statements -- (Continued)
June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
distribution fee, and maximum expense amounts are currently equal to the
following annual percentage of average daily 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>
Multi-Cap Growth 1.00% 0.45% 1.00% 1.00% none 1.85% 2.40% 2.40% 1.40%
Small Company Growth 1.00% 0.45% 1.00% 1.00% none 1.85% 2.40% 2.40% 1.40%
Small Company Value 0.75% 0.45% 1.00% 1.00% none 1.75% 2.30% 2.30% 1.30%
Growth 0.75% 0.45% 1.00% 1.00% none 1.60% 2.15% 2.15% 1.15%
Capital Appreciation 0.75% 0.45% 1.00% 1.00% none 1.75% 2.30% 2.30% 1.30%
Equity 0.75% 0.45% 1.00% 1.00% none 1.60% 2.15% 2.15% 1.15%
Growth and Income 0.75% 0.45% 1.00% 1.00% none 1.50% 2.05% 2.05% 1.05%
Equity Income 0.75% 0.45% 1.00% 1.00% none 1.50% 2.05% 2.05% 1.05%
International Growth 0.85% 0.45% 1.00% 1.00% none 2.00% 2.55% 2.55% 1.55%
Internet 1.00% 0.45% 1.00% 1.00% none 1.90% 2.45% 2.45% 1.45%
International Internet 1.00% 0.45% 1.00% 1.00% none 1.90% 2.45% 2.45% 1.45%
Global Financial Services 0.85% 0.45% 1.00% 1.00% none 1.75% 2.30% 2.30% 1.30%
Managed 0.75% 0.45% 1.00% 1.00% none 1.50% 2.05% 2.05% 1.05%
Balanced 0.75% 0.45% 1.00% 1.00% none 1.40% 1.95% 1.95% 0.95%
High-Yield Bond 0.60% 0.45% 1.00% 1.00% none 1.30% 1.85% 1.85% 0.85%
Government Securities 0.60% 0.45% 1.00% 1.00% none 1.30% 1.85% 1.85% 0.85%
Tax-Exempt Income 0.50% 0.45% 1.00% 1.00% none 1.10% 1.65% 1.65% 0.65%
Money Market 0.35% none none none none 0.70% 0.70% 0.70% 0.70%
</TABLE>
For the Managed Fund, the maximum expense amounts for each class were as follows
prior to April 10, 2000: A) 1.75% B) 2.30% C) 2.30% and Y) 1.30%.
THE ENTERPRISE Group of Funds, Inc.
121
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--------------------------------------------------------------------------------
<PAGE>
Notes to Financial Statements -- (Continued)
June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ECM is a wholly-owned subsidiary of The MONY Life Insurance Company, which is
wholly-owned by The MONY Group Inc. (NYSE:MNY). The MONY Group Inc. and its
subsidiaries and affiliates had the following investments in EGF as of June 30,
2000:
<TABLE>
<CAPTION>
Fund A B C Y
--------------------------- ------------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Multi-Cap Growth $1,797,600 $255,600 $255,400 $ 625,657
Small Company Growth -- -- -- 79,280
Small Company Value 238,662 -- -- 248,927
Growth 309,102 -- -- 24,754,494
Capital Appreciation 246,905 -- -- 321,365
Equity 1,708,156 -- -- 164,618
Growth and Income -- -- -- 170,579
Equity Income 193,755 -- -- 107,942
International Growth 6,057,805 -- -- 23,946,824
Internet 155,848 -- -- 713,630
International Internet 400,000 300,000 300,000 637,782
Global Financial Services 21,978 -- -- 5,275,059
Managed 3,080,591 -- -- 53,345,518
Balanced 737,800 105,000 105,200 107,131
High-Yield Bond 90,775 -- -- 8,664
Government Securities 321,300 -- -- 2,127
Tax-Exempt Income -- -- 990 46,069
Money Market 145,110 -- -- 255,656
</TABLE>
ECM has subadvisory agreements with various investment advisors as subadvisers
for the funds of EGF. The management fee, as a percentage of average daily net
assets of a fund, is paid to ECM, which pays a portion of the fee to the
subadviser. 1740 Advisers, Inc., a wholly-owned subsidiary of The MONY Group
Inc., is the subadviser for the Equity Income Fund. For the six months ended
June 30, 2000, ECM incurred subadvisory fees payable to 1740 Advisers, Inc.
related to the Equity Income Fund of $207,574, with a related payable balance of
$33,675 at June 30, 2000.
The portion of sales charges paid to MONY Securities Corporation, a wholly-owned
subsidiary of The MONY Group Inc., was $10,877,961 for the six months ended June
30, 2000. The portion of sales charges paid to EFD was $1,597,475 for the six
months ended June 30, 2000.
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.
For the six months ended June 30, 2000, EFD incurred service fees of $1,241,402
payable to MONY Securities Corporation.
For the six months ended June 30, 2000, the funds paid brokerage commissions to
affiliates as follows:
<TABLE>
<CAPTION>
Fund Commissions
---- -----------
<S> <C>
Multi-Cap Growth $ 99,262
Small Company Value 257,390
Capital Appreciation 6,849
Equity Income 3,060
Internet 122,119
Global Financial Services 8,536
Managed 42,671
Balanced 204
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
122
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--------------------------------------------------------------------------------
<PAGE>
Notes to Financial Statements -- (Continued)
June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
4. Financial Instruments
As part of each fund's investment program, the International Growth,
International Internet and Global Financial Services Funds 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, 2000, 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 counter parties to meet the terms of their
contracts and from movements in currency values. Outstanding contracts at June
30, 2000 are as follows:
International Growth Fund
<TABLE>
<CAPTION>
Settlement
Date Purchases Net Unrealized
----------- --------------------------------------------- Appreciation/
Receive Deliver (Depreciation)
--------------------- --------------------- ---------------
<S> <C> <C> <C> <C> <C>
7/27/00 EUR 14,000,000 USD 13,022,800 $ 366,777
8/2/00 CHF 6,500,000 USD 3,884,075 113,544
8/22/00 JPY 660,000,000 USD 6,586,826 (306,739)
----------
173,582
----------
Sales
-------------------------------------------
Receive Deliver
------------------- -------------------
7/27/00 USD 12,931,450 EUR 14,000,000 (458,127)
8/02/00 USD 3,791,635 CHF 6,500,000 (205,984)
8/22/00 USD 8,755,187 GBP 5,900,000 (180,866)
8/22/00 USD 6,133,829 JPY 660,000,000 (146,258)
----------
(991,235)
----------
$ (817,653)
==========
</TABLE>
Global Financial Services Fund
<TABLE>
<CAPTION>
Settlement
Date Sales Net Unrealized
------------ --------------------------------------------- Appreciation/
Receive Deliver (Depreciation)
-------------------- ---------------------- ---------------
<S> <C> <C> <C> <C> <C>
09/21/00 USD 189,756 AUD 315,000 $ 1,103
09/21/00 USD 57,751 HKD 450,000 (16)
09/21/00 USD 1,046,831 JPY 109,700,000 (2,499)
09/21/00 USD 116,604 SGD 200,000 (283)
--------
$ (1,695)
========
</TABLE>
As part of their investment program, the funds may enter into futures contracts
(up to their prospectus defined limitations) 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 will lose an amount in
excess of the initial margin deposit; and
THE ENTERPRISE Group of Funds, Inc.
123
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--------------------------------------------------------------------------------
<PAGE>
Notes to Financial Statements -- (Continued)
June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
(4) the fact that the success or failure of these transactions for the fund
depends on the ability of the subadviser to predict movements in stock, bond,
and currency prices as well as interest rates. There were no open futures
contracts at June 30, 2000.
For the six months ended June 30, 2000, purchases and sales proceeds of
investments, other than short-term investments, were as follows:
<TABLE>
<CAPTION>
U.S. Government Other Investment
Obligations Securities
------------------------- -----------------------------
<S> <C> <C> <C> <C>
Fund Purchases Sales Purchases Sales
--------------------------- ------------ ----------- ------------- -------------
Multi-Cap Growth -- -- $251,556,449 $ 78,334,145
Small Company Growth -- -- 52,600,560 20,131,241
Small Company Value -- -- 129,707,666 96,534,695
Growth -- -- 622,423,322 634,845,090
Capital Appreciation -- -- 251,045,756 171,804,845
Equity -- -- 26,422,968 3,965,717
Growth and Income -- -- 41,192,850 6,345,061
Equity Income -- -- 17,978,065 37,141,631
International Growth -- -- 60,254,373 36,117,931
Internet -- -- 460,612,065 213,094,326
International Internet -- -- -- --
Global Financial Services -- -- 12,371,232 2,477,680
Managed -- -- 38,231,770 98,823,997
Balanced $ 428,526 $ 563,462 4,159,820 2,082,909
High-Yield Bond 751,641 497,578 32,798,142 38,829,674
Government Securities 11,174,169 7,117,153 -- 403,521
Tax-Exempt Income -- -- 1,016,260 2,649,978
</TABLE>
5. Written Options
When a fund writes an option, an amount equal to the premium received by the
fund is recorded as a liability and is subsequently adjusted to the current
market value of the option written. Premiums received from writing options that
expire unexercised are treated realized gains from investments. The difference
between the premium and the amount paid on effecting a closing purchase
transaction, is also treated as a realized gain, or if the premium is less than
the amount paid for the closing purchase transaction, as a realized loss. If a
call option is exercised, the premium is added to the proceeds from the sale of
the underlying security in determining whether the fund has realized a gain or
loss. The risk associated with writing call options is that the fund may forego
the opportunity for a profit if the market value of the underlying security
increases and the option is exercised.
Transactions in call options written for the six months ended June 30, 2000,
were as follows:
<TABLE>
<CAPTION>
Number of Premiums
Contracts Received
----------- ------------
<S> <C> <C>
Growth and Income Fund
Outstanding call options written at December 31, 1999 30 $ 20,224
Options written 10 22,074
Options exercised (30) (20,224)
--- ---------
Outstanding call options written at June 30, 2000 10 $ 22,074
=== =========
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
124
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--------------------------------------------------------------------------------
<PAGE>
Notes to Financial Statements -- (Continued)
June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
6. Borrowings
EGF, and another mutual fund under common control, are parties to a $50 million
redemption line of credit with State Street Bank and Trust Co. whereby each fund
may borrow up to its prospectus defined limitation. At June 30, 2000, there were
no loans outstanding. There were no funds that had outstanding balances at any
time during the six months ended June 30, 2000.
7. Capital Share Transactions
At June 30, 2000, each fund has 8,800,000,000 authorized shares at $.10 par
value. The following tables summarize the capital share activity:
<TABLE>
<CAPTION>
Small Company Growth Small Company Value
Multi-Cap Growth Fund Fund Fund
----------------------------- --------------------------- ---------------------------------
For the
Year-to-date Period Year-to-date Year Ended Year-to-date Year Ended
June 30, 7/1/99 to June 30, Dec. 31, June 30, Dec. 31,
2000 12/31/99 2000 1999 2000 1999
--------------- ------------- ------------- ------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Class A
Shares sold 5,579,063 3,743,529 713,807 414,720 13,307,802 16,485,323
---------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions -- 45,721 5,058 -- 278,829 1,098,458
---------------------------------------------------------------------------------------------------------------------------
Shares redeemed (880,914) (207,755) (330,942) (207,992) (11,664,835) (11,810,385)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 4,698,149 3,581,495 387,923 206,728 1,921,796 5,773,396
---------------------------------------------------------------------------------------------------------------------------
Class B
Shares sold 5,759,758 2,994,506 516,030 380,608 2,389,869 5,140,797
---------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions -- 40,251 5,591 -- 209,585 841,748
---------------------------------------------------------------------------------------------------------------------------
Shares redeemed (409,409) (125,978) (73,534) (169,449) (1,719,498) (2,075,975)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 5,350,349 2,908,779 448,087 211,159 879,956 3,906,570
---------------------------------------------------------------------------------------------------------------------------
Class C
Shares sold 2,434,239 1,048,063 156,591 103,499 1,755,190 2,945,424
---------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions -- 12,907 1,353 -- 83,785 289,171
---------------------------------------------------------------------------------------------------------------------------
Shares redeemed (314,170) (48,819) (48,765) (73,035) (631,797) (863,222)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 2,120,069 1,012,151 109,179 30,464 1,207,178 2,371,373
---------------------------------------------------------------------------------------------------------------------------
Class Y
Shares sold 24,614 55,663 7,567 28,157 99,862 55,844
---------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions -- 404 1,690 -- 1,248 4,937
---------------------------------------------------------------------------------------------------------------------------
Shares redeemed (9,860) (9,466) (22,752) (153,968) (19,446) (24,194)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 14,754 46,601 (13,495) (125,811) 81,664 36,587
---------------------------------------------------------------------------------------------------------------------------
Total net increase (decrease) 12,183,321 7,549,026 931,694 322,540 4,090,594 12,087,926
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
125
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--------------------------------------------------------------------------------
<PAGE>
Notes to Financial Statements -- (Continued)
June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth Fund Capital Appreciation Fund Equity 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,
2000 1999 2000 1999 2000 1999
---------------- ---------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Class A
Shares sold 31,233,738 37,894,541 3,115,504 2,925,321 2,032,737 533,352
--------------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 1,761,130 2,202,180 625,688 496,834 13,289 37,148
--------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (32,619,394) (27,727,480) (2,463,123) (2,943,920) (342,966) (490,608)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 375,474 12,369,241 1,278,069 478,235 1,703,060 79,892
--------------------------------------------------------------------------------------------------------------------------------
Class B
Shares sold 4,966,072 14,507,898 1,094,608 557,649 1,770,229 741,920
--------------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 1,169,930 1,523,703 220,809 113,247 20,879 64,727
--------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (3,729,258) (3,633,294) (177,164) (162,851) (342,299) (569,548)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 2,406,744 12,398,307 1,138,253 508,045 1,448,809 237,099
--------------------------------------------------------------------------------------------------------------------------------
Class C
Shares sold 2,876,533 7,025,356 500,126 167,180 667,899 216,111
--------------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 433,111 541,793 57,667 16,893 4,161 12,309
--------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (1,863,580) (1,742,477) (74,714) (60,387) (41,809) (163,166)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 1,446,064 5,824,672 483,079 123,686 630,251 65,254
--------------------------------------------------------------------------------------------------------------------------------
Class Y
Shares sold 901,919 1,393,412 6,074 5,107 13,668 13,859
--------------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 108,139 126,526 1,239 791 187 599
--------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (599,812) (887,052) (1,504) (2,057) (4,042) (1,030)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 410,246 632,886 5,809 3,841 9,813 13,428
--------------------------------------------------------------------------------------------------------------------------------
Total net increase (decrease) 4,638,528 31,225,106 2,905,210 1,113,807 3,791,933 395,673
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Growth and Income Fund Equity Income Fund International 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,
2000 1999 2000 1999 2000 1999
------------- ------------- ------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Class A
Shares sold 1,028,227 1,867,895 509,903 603,220 2,836,643 1,747,130
---------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 138 281 132,627 183,831 25,388 215,231
---------------------------------------------------------------------------------------------------------------------------
Shares redeemed (653,354) (737,784) (963,344) (871,866) (2,498,602) (1,829,143)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 375,011 1,130,392 (320,814) (84,815) 363,429 133,218
---------------------------------------------------------------------------------------------------------------------------
Class B
Shares sold 851,447 1,419,461 168,111 635,419 451,109 390,802
---------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions -- 271 49,991 66,284 11,106 89,994
---------------------------------------------------------------------------------------------------------------------------
Shares redeemed (181,899) (224,593) (350,336) (329,347) (112,239) (337,049)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 669,548 1,195,139 (132,234) 372,356 349,976 143,747
---------------------------------------------------------------------------------------------------------------------------
Class C
Shares sold 159,737 342,069 93,174 303,799 352,444 135,340
---------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions -- 51 10,029 13,871 2,596 20,162
---------------------------------------------------------------------------------------------------------------------------
Shares redeemed (72,484) (144,613) (141,559) (186,365) (222,244) (97,232)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 87,253 197,507 (38,356) 131,305 132,796 58,270
---------------------------------------------------------------------------------------------------------------------------
Class Y
Shares sold 12,220 74,057 159 1,888 774,704 675,943
---------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions -- 62 36 79 10,529 82,195
---------------------------------------------------------------------------------------------------------------------------
Shares redeemed (31,303) (262,781) (1,077) (568) (496,740) (596,108)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (19,083) (188,662) (882) 1,399 288,493 162,030
---------------------------------------------------------------------------------------------------------------------------
Total net increase (decrease) 1,112,729 2,334,376 (492,286) 420,245 1,134,694 497,265
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
126
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--------------------------------------------------------------------------------
<PAGE>
Notes to Financial Statements -- (Continued)
June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Global Financial Services
Internet Fund Internet Fund Fund
------------------------------- --------------- ------------------------------
Year-to-date For the Period For the Period Year-to-date Year Ended
June 30, of 7/1/99 to of 6/30/00 to June 30, Dec. 31,
2000 12/31/99 6/30/00 2000 1999
--------------- --------------- --------------- --------------- -------------
<S> <C> <C> <C> <C> <C>
Class A
Shares sold 4,099,848 4,095,377 566,074 2,379,208 1,033,478
----------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 14,572 36,343 -- 3,496 23,992
----------------------------------------------------------------------------------------------------------------
Shares redeemed (1,551,757) (371,106) -- (1,155,652) (364,764)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) 2,562,663 3,760,614 566,074 1,227,052 692,706
----------------------------------------------------------------------------------------------------------------
Class B
Shares sold 3,867,193 3,725,767 579,839 808,368 847,428
----------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 14,357 32,606 -- 4,605 18,933
----------------------------------------------------------------------------------------------------------------
Shares redeemed (783,569) (372,516) -- (322,424) (196,340)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) 3,097,981 3,385,857 579,839 490,549 670,021
----------------------------------------------------------------------------------------------------------------
Class C
Shares sold 1,416,071 1,221,366 179,017 134,912 152,563
----------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 4,901 9,595 -- 357 3,194
----------------------------------------------------------------------------------------------------------------
Shares redeemed (321,241) (110,860) -- (67,409) (62,720)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) 1,099,731 1,120,101 179,017 67,860 93,037
----------------------------------------------------------------------------------------------------------------
Class Y
Shares sold 20,290 73,967 64,703 12,501 16,494
----------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 123 314 -- 2,756 31,864
----------------------------------------------------------------------------------------------------------------
Shares redeemed (24,323) (30,880) -- (6,644) (9,990)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) (3,910) 43,401 64,703 8,613 38,368
----------------------------------------------------------------------------------------------------------------
Total net increase (decrease) 6,756,465 8,309,973 1,389,633 1,794,074 1,494,132
----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Managed Fund Balanced Fund High-Value Bond Fund
------------------------------- -------------------------------- -------------------------------
Year-to-date Year Ended Year-to-date For the Period of Year-to-date Year Ended
June 30, Dec. 31, June 30, 7/1/99 to June 30, Dec. 31,
2000 1999 2000 12/31/99 2000 1999
--------------- --------------- ------------- ------------------ --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Class A
Shares sold 965,203 3,256,841 603,427 956,176 593,071 1,504,768
--------------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 1,270,128 1,376,144 10,746 3,153 188,129 399,065
--------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (4,223,177) (7,593,627) (387,749) (34,672) (1,089,975) (2,377,293)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (1,987,846) (2,960,642) 226,424 924,657 (308,775) (473,460)
--------------------------------------------------------------------------------------------------------------------------------
Class B
Shares sold 854,860 2,969,971 384,411 864,523 383,053 1,169,333
--------------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 1,396,861 1,373,221 10,555 2,120 97,993 196,528
--------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (4,095,729) (5,336,108) (155,606) (41,908) (647,960) (1,107,938)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (1,844,008) (992,916) 239,360 824,735 (166,914) 257,923
--------------------------------------------------------------------------------------------------------------------------------
Class C
Shares sold 173,360 461,536 103,108 140,623 28,629 539,367
--------------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 98,733 93,624 1,944 278 19,010 34,450
--------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (390,807) (724,909) (14,286) (9,873) (221,803) (418,971)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (118,714) (169,749) 90,766 131,028 (174,164) 154,846
--------------------------------------------------------------------------------------------------------------------------------
Class Y
Shares sold 303,230 1,675,893 39 20,279 4,056 24,934
--------------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 762,250 845,239 4 2 5,023 15,035
--------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (2,464,662) (3,190,654) -- -- (5,544) (109,158)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (1,399,182) (669,522) 43 20,281 3,535 (69,189)
--------------------------------------------------------------------------------------------------------------------------------
Total net increase (decrease) (5,349,750) (4,792,829) 556,593 1,900,701 (646,318) (129,880)
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
127
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--------------------------------------------------------------------------------
<PAGE>
Notes to Financial Statements -- (Continued)
June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Government Securities Fund Tax-Exempt Income Fund Money Market 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,
2000 1999 2000 1999 2000 1999
--------------- --------------- ------------- --------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Class A
Shares sold 2,896,460 4,404,258 155,982 937,406 904,626,209 902,291,310
---------------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 137,590 271,155 27,008 63,753 5,257,106 7,522,610
---------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (3,357,078) (4,201,338) (317,644) (1,021,567) (915,102,405) (845,900,561)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (323,028) 474,075 (134,654) (20,408) (5,219,090) 63,913,359
---------------------------------------------------------------------------------------------------------------------------------
Class B
Shares sold 498,631 1,733,066 83,421 249,210 29,393,910 63,366,742
---------------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 63,729 112,198 5,817 12,995 599,287 893,135
---------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (746,783) (892,116) (111,062) (144,009) (41,023,113) (41,544,633)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (184,423) 953,148 (21,824) 118,196 (11,029,916) 22,715,244
---------------------------------------------------------------------------------------------------------------------------------
Class C
Shares sold 283,163 431,058 7,893 117,527 19,515,428 27,978,256
---------------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 10,927 17,583 1,995 3,992 189,588 284,855
---------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (188,046) (226,168) (52,759) (44,618) (18,810,464) (25,647,018)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 106,044 222,473 (42,871) 76,901 894,552 2,616,093
---------------------------------------------------------------------------------------------------------------------------------
Class Y
Shares sold 78,481 55,429 9 5 144,691 1,314,799
---------------------------------------------------------------------------------------------------------------------------------
Reinvestment of distributions 17,401 34,729 -- 65 63,199 148,465
---------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (22,599) (152,729) (1,250) -- (1,178,682) (1,398,749)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 73,283 (62,571) (1,241) 70 (970,792) 64,515
---------------------------------------------------------------------------------------------------------------------------------
Total net increase (decrease) (328,124) 1,587,125 (200,590) 174,759 (16,325,246) 89,309,211
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
128
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--------------------------------------------------------------------------------
<PAGE>
Notes to Financial Statements -- (Continued)
June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
8. Tax Basis Unrealized Gain (Loss) of Investments and Distributions
At June 30, 2000, 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>
Unrealized
Unrealized Unrealized Net
Fund Tax Cost Gain (Loss) Gain (Loss)
---- ---------------- -------------- ----------------- ----------------
<S> <C> <C> <C> <C>
Multi-Cap Growth $ 238,778,318 $ 35,416,994 $ (18,171,703) $ 17,245,291
Small Company Growth 71,687,362 23,317,699 (10,620,425) 12,697,274
Small Company Value 314,458,681 39,913,663 (39,308,406) 605,257
Growth 2,095,213,025 409,770,568 (107,052,893) 302,717,675
Capital Appreciation 252,651,965 49,119,106 (15,219,919) 33,899,187
Equity 47,974,407 7,676,817 (680,448) 6,996,369
Growth and Income 169,424,180 67,825,651 (12,120,500) 55,705,151
Equity Income 119,559,683 26,864,614 (6,715,157) 20,149,457
International Growth 101,950,460 18,880,247 (7,139,507) 11,740,740
Internet 362,828,792 76,380,007 (26,380,204) 49,999,803
International Internet -- -- -- --
Global Financial Services 26,082,418 1,820,795 (2,876,902) (1,056,107)
Managed 280,606,497 35,141,043 (21,560,582) 13,580,461
Balanced 12,589,258 811,145 (457,700) 353,445
High-Yield Bond 109,175,657 735,704 (12,068,798) (11,333,094)
Government Securities 129,488,567 75,860 (4,938,587) (4,862,727)
Tax-Exempt Income 27,131,081 310,485 (509,954) (199,469)
</TABLE>
Income and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from accounting principles generally
accepted in the United States. 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. These reclassifications
have no effect on net assets or net asset values per share. Any taxable gain
remaining at fiscal year end is distributed in the following year.
At December 31, 1999, the following funds had net capital loss carryforwards for
federal tax purposes of:
<TABLE>
<CAPTION>
Expiring
Fund Balance Through
---- ------------ ----------
<S> <C> <C>
Growth and Income $ 821,073 2007
High-Yield Bond 3,117,222 2007
Government Securities 3,844,247 2004
Money Market 14,661 2007
</TABLE>
THE ENTERPRISE Group of Funds, Inc.
129
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--------------------------------------------------------------------------------
<PAGE>
DIRECTORS AND OFFICERS
Directors
Victor Ugolyn
Chairman and Director
Arthur T. Dietz Arhtur 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
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
Philadelphia, PA
Member-Investment Company Institute
[GRAPHIC] Enterprise
Group of Funds
INVEST WITH THE PROS THE PROFESSIONALS USE
1-800-432-4320
www.enterprise.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.
