MESSAGE
To Our Shareholders
The equity markets were extremely strong in the fiscal year ended November
30, 1995, as rising earnings and falling interest rates combined to enhance
stock valuations. Large capitalization stocks outperformed smaller
capitalization companies, while growth stock investing generally outperformed
low valuation approaches.
For the fiscal year ended November 30, 1995, the total return (price change
and reinvested distributions) of Babson Enterprise Fund II was 19.1%. This
trailed the 28.5% return of the unmanaged Russell 2000 index of small company
stocks and the 36.8% return of the unmanaged Standard & Poor's 500 index of
larger company stocks. The Fund's emphasis on smaller capitalization companies
and on out-of-favor cheaply valued companies clearly put it at a relative
disadvantage in a momentum-driven market where the best returns
were earned by high growth, high technology, and high capitalization
companies.
In the six months since our mid-year message to shareholders, six new
holdings have been added to the portfolio:
ADAC Laboratories _ designs and manufactures medical imaging systems;
DiMon Inc. _ tobacco processor and fresh-cut flower distributor;
Duty Free International, Inc. _ operator of duty free retail stores in
airports and on the Canadian and Mexican borders;
Octel Communications Corp. _ supplier of voice information processing systems
for use over the telephone;
Primark Corp. _ provider of information and analytical services to financial
market customers, weather forecasting operations, and government agencies;
Viewlogic Systems Inc. _ designs software for computer-aided engineering.
Four positions were liquidated in the second half of fiscal 1995. Moorco
International and Wallace Computer Services were sold at substantial gains
after each received unsolicited tender offers for acquisition by other
companies. Nellcor, a manufacturer of advanced medical monitoring equipment,
was sold for valuation reasons at a sizable premium to cost after the stock
ran up sharply. Arctco, a maker of recreational vehicles, was sold at a loss
due to concerns about the increasingly competitive markets in which it
participates.
Our disciplined value-oriented approach as applied to companies with
promising long-term fundamentals should provide favorable results over time
with less risk exposure. We believe that economically-sensitive holdings are
well positioned to rebound in 1996. We are also skeptical of some of the
valuation excesses that we perceive in certain sectors of the market,
especially with regard to high technology and the banking industry.
In December 1995, the Fund distributed an ordinary income dividend of $0.055
per share and distributed $0.948 from realized long-term capital gains. For
corporate shareholders, 100% of ordinary income distributions qualify for the
corporate dividends received deduction.
Thank you for your interest and participation in Babson Enterprise Fund II.
We welcome your comments and questions.
Sincerely,
Larry D. Armel
President
<PAGE>
PORTFOLIO REVIEW
Babson Enterprise Fund II is a no-load mutual fund invested in common stocks
of smaller, faster growing companies which at the time of purchase are
considered to be realistically valued in the smaller company sector of the
market.
With such a strong advance in the U.S. stock market in 1995, we thought it
might be worthwhile to step back and analyze small company investing because
it participated in the surge. While small company investing may seem like a
simple notion, there are currently over 350 small company mutual funds. Each
of these funds would argue that it is "different" from all other funds.
However, most of them have a bias toward either "growth" or "value."
In fact, Morningstar Mutual Funds, a publication devoted to the analysis of
mutual funds has begun to separate the small company funds it ranks into
growth and value categories. The differences between the two styles of
investing are quite remarkable.
First of all, the Morningstar statistics in general show a very strong
penchant for "growth" investing among small company funds. Many investors
view small company investing as synonymous with "aggressive growth" or
"emerging growth" investing. A comparison of the average small company fund
to the most popular small company index, the Russell 2000, shows that
managers are tending to buy very young companies with very high past growth
rates, and high valuations.
Morningstar
Small Co. Fund Russell
Average 2000
Age of Company 14 Years* N/A
5 Years of EPS Growth 22.2% 7.5%
Price/Book Ratio 4.2X 2.1X
Price/Earnings Ratio 25.0X 21.0X
*Largest 20 holdings
If the Russell 2000 (containing, as its name implies, 2000 small company
stocks) is a broad representation of the universe available to these funds,
it is clear that the average manager is seeking out the more rapidly growing
companies, and is willing to pay up for them.
However, if we delve deeper into the statistical
distinctions between the funds that Morningstar calls
as "growth" and those it classifies as "value," the differences are even more
extreme. The table below illustrates that.
Small Company Small Company
Growth Fund Value Fund
Average Average
Company Statistics
5 Year EPS Growth 33.2% 12.2%
Return on Assets 12.6% 6.9%
Price/Book Ratio 6.3X 2.3X
Price/Earnings Ratio 32.7X 17.9X
Portfolio Statistics
Annual Turnover 105% 55%
Beta 1.10 0.73
Standard Deviation (3 yr.) 15.0% 9.1%
By virtually every measure, small company growth funds are extremely
aggressively managed. The companies held by those funds have a historic
five-year average earnings growth that is almost three times that of the
small company value funds. Return on assets is almost double, and valuations
of the stocks are much higher.
The managers of the growth funds are also very quick to change holdings. The
average holding period of a stock is less than one year, whereas the value
managers hold on for an average of two years.
All this aggressiveness is reflected in much greater volatility in
performance. Whether measured by the standard deviation of results, or by the
funds' beta, the growth funds are more volatile than the value funds, and
more volatile than the market as whole. The value funds are less volatile
than the market.
However, when aggressive growth stocks are popular, as they have been in 1995,
the performance can be spectacular. Helped by a 33.7% weighting in technology
stocks, small company growth funds were up 37.8% through November 30, 1995.
This compares with only a 21.2% return for small company value funds which,
on average only have 11.5% of assets in technology.
But over the long term does one style outperform the other? Morningstar has
tracked performance for fifteen years and over that period there has been
only a minimal difference between the two. Small company growth funds
compounded at 12.5% annually and small company value funds compounded at
12.0% a year with more than the entire differential coming from the
outperformance of the growth style in 1995. Obviously, with such strong
performance in 1995, growth funds have been better performers over the short
term. However, Morningstar rates all funds on a risk adjusted basis
(weighting its rating 50% on the ten year record, 30% on five years, and 20%
on three years), and by this measure growth and value funds end in a virtual
dead heat. Growth funds get a rating of 3.31 while value funds garner 3.30.
The significance of all this is that not all small company funds are the
same. The popular perception of small company funds being "aggressive" or
"emerging" growth funds may have some statistical support overall, but it
misses a whole category of lower risk "value" funds. The important thing is
to make sure you understand what type of fund you are invested in and that
it properly reflects your investment goals and your tolerance for performance
volatility.
We have long believed in the lower risk approach to small company investing.
We continue to adhere to that strategy, and think that a less volatile path
to performance is the best route.
David L. Babson & Co. Inc.
PORTFOLIO REVIEW
Babson Enterprise Fund II versus Russell 2000 and S&P 500
Babson Enterprise Fund II's average annual compounded total returns for one
year and the life of the Fund (inception August 5, 1991) as of November 30,
1995, were 19.11% and 11.86%, respectively. Performance data contained in
this report is for past periods only. Past performance is not predictive of
future performance. Investment return and share value will fluctuate, and
redemption value may be more or less than original cost.
<PAGE>
STATEMENT OF NET ASSETS
November 30, 1995
S&P MARKET VALUE
RANKING** SHARES COMPANY COST (NOTE 1-A)
COMMON STOCKS _ 94.76%
BASIC MATERIALS _ 9.83%
B- 21,100 Brush Wellman Inc.
(Supplier of beryllium). $ 357,916 $ 369,250
B 35,000 Hanna (M.A.) Co.
(Polymers and specialty chemical) 717,822 940,625
B+ 25,300 Kennametal, Inc.
(Metal working products) 505,719 777,975
B 33,000 Mosinee Paper Corp.
(Paper and paper products) 786,556 800,250
C 57,600 Southdown, Inc.*
(Cement, concrete and environmental
service) 856,225 1,087,200
3,224,238 3,975,300
CAPITAL GOODS _ 23.01%
A 23,430 Baldor Electric Co.
(Industrial electric motors) 225,903 530,104
B+ 31,000 Carlisle Companies Inc.
(Automotive/industrial products
and construction materials) 834,720 1,321,375
B 48,000 Gerber Scientific, Inc.
(Computer aided design/manufacturing
systems) 725,821 816,000
NR 35,000 Global Industrial Technologies, Inc.*
(Refractory products, mining
equipment and industrial tools) 511,693 621,250
A- 61,200 Juno Lighting, Inc.
(Recessed and track lighting) 1,000,455 971,550
B- 45,000 MagneTek, Inc.*
(Lighting products, electric motors
and generators) 756,911 371,250
B- 30,000 Miller (Herman), Inc.
(Office furniture systems) 754,463 952,500
A 21,200 Modine Manfacturing Co.
(Auto parts: heating and
air-conditioning) 291,425 657,200
A- 27,500 Precision Castparts Corp.
(Complex investment castings) 451,350 990,000
B+ 28,600 Sealright Co.
(Packaging products) 422,400 314,600
CAPITAL GOODS (Continued)
NR 38,000 TriMas Corp.
(Specialty fasteners/containers) $ 532,303 $ 731,500
B+ 33,500 Trinity Industries, Inc.
(Railcars, containers, boats) 925,720 1,030,125
7,433,164 9,307,454
CONSUMER CYCLICAL _ 28.54%
B+ 38,000 Armor All Products Corp.
(Car care products) 770,977 707,750
B- 23,000 Arvin Industries, Inc.
(Auto parts; mufflers and shocks) 577,203 405,375
NR 46,500 Commerce Clearing House, Inc.
Cl. B (non-voting) (Tax and
business law publisher) 780,884 2,534,250
B 41,000 Consolidated Stores Corp.*
(Close-out merchandise retailer) 564,683 1,014,750
B+ 20,300 Duty Free International, Inc.
(Duty free retailer) 281,239 274,050
NR 39,200 Fingerhut Companies, Inc.
(Direct mail marketer) 625,778 494,900
B+ 36,000 Huffy Corp.
(Recreational products
manufacturer) 596,833 382,500
B+ 19,050 King World Productions, Inc.*
(Distribution and syndication of
TV programs) 579,192 754,856
A- 23,500 La-Z Boy Chair Co.
(Furniture manufacturer) 591,635 749,063
A- 25,450 Lee Enterprises, Inc.
(Newspaper publishing, radio, TV) 780,712 1,059,356
B+ 12,000 National Presto Industries, Inc.
(Electrical appliances and
housewares) 510,052 499,500
B- 15,000 Standard Products Co.
(Rubber and plastic products) 363,393 241,875
A- 35,000 Sturm, Ruger & Company, Inc.
(Firearms manufacturer) 1,007,744 1,023,750
CONSUMER CYCLICAL (Continued)
NR 64,000 Waban Inc.*
(Warehouse club retailer) $ 989,527 $ 1,184,000
A- 24,000 Wolohan Lumber Co.
(Building materials supply centers) 517,150 216,000
9,537,002 11,541,975
CONSUMER STAPLES _ 10.08%
A 23,000 Alberto-Culver Co. Cl. A
(Manufacturer and retailer of
cosmetics and
household products) 485,930 652,625
NR 30,000 DiMon Inc.
(Tobacco processor/fresh cut
flowers distributor) 441,964 517,500
NR 23,500 First Brands Corp.
(Branded and private label
consumer products) 706,183 1,075,125
A+ 25,000 Hannaford Brothers Co.
(Supermarket retailer) 542,994 600,000
B+ 10,000 Helene Curtis Industries Inc.
(Brand name personal care products) 277,756 288,750
NR 26,100 Paragon Trade Brands, Inc.*
(Private label disposable diapers) 505,090 544,837
B- 15,000 Vons Companies, Inc.*
(Supermarket retailer) 269,025 397,500
3,228,942 4,076,337
ENERGY _ 5.88%
NR 24,000 Cabot Oil & Gas Corp. Cl. A
(Oil & gas developer/producer) 461,670 339,000
B- 60,800 California Energy Company, Inc.*
(Geothermal energy power) 1,018,473 1,170,400
B- 88,000 Nabors Industries, Inc.*
(Oil and gas drilling) 616,479 869,000
2,096,622 2,378,400
FINANCIAL _ 7.59%
B+ 119,200 Cash America International, Inc.
(Pawn shop operator) $ 1,048,380 $ 655,600
A 36,750 First Commercial Corp.
(Aarkansas bank holding company) 764,513 1,185,188
A- 27,000 FirsTier Financial, Inc.
(Nebraska bank holding company) 801,227 1,228,500
2,614,120 3,069,288
HEALTH CARE _ 0.56%
B 18,000 ADAC Laboratories
(Medical imaging systems) 239,850 227,250
MISCELLANEOUS _ 1.71%
NR 25,000 Primark Corp.*
(Information services for gov't.,
financial and weather markets) 415,423 690,625
TECHNOLOGY _ 3.27%
B 18,000 Octel Communications Corp.*
(Voice information processing
equipment) 522,423 591,750
NR 28,000 Scitex Corp.
(Computerized imaging systems) 598,719 402,500
NR 30,200 Viewlogic Systems Inc.*
(Computer-aided engineering
software) 372,392 328,425
1,493,534 1,322,675
TRANSPORTATION & SERVICES _ 4.29%
A 16,700 Omnicom Group Inc.
(International advertising
company) 655,812 1,114,725
B- 31,000 Overseas Shipholding Group, Inc.
(International ship operator) 640,518 620,000
1,296,330 1,734,725
TOTAL COMMON STOCKS _ 94.76% 31,579,225 38,324,029
REPURCHASE AGREEMENT _ 5.43%
$ 2,195,000 UMB Bank, n.a.,
5.40%, due December 1, 1995
(Collateralized by $2,238,876
U.S. Treasury Notes,
7.625%, due April 30, 1996) $ 2,195,000 $ 2,195,000
TOTAL INVESTMENTS _ 100.19% $ 33,774,225 40,519,029
Other assets less liabilities _ (0.19%) (76,433)
TOTAL NET ASSETS _ 100.00%
(equivalent to $19.19 per share; 10,000,000 shares of
$1.00 par value capital shares authorized;
2,107,448 shares outstanding) $ 40,442,596
For federal income tax purposes, the identified cost of investments owned
at November 30, 1995 was $33,779,426.
Net unrealized appreciation for federal income tax purposes was $6,739,603,
which is comprised of unrealized appreciation of $9,071,398 and unrealized
depreciation of $2,331,795.
*Securities on which no cash dividends were paid during the preceding year.
**Standard & Poor's rankings are derived from statistical measurements of
past earnings and dividend stability and growth.
NR _ indicates no ranking is available. Rankings are not covered by the
report of independent auditors.
<PAGE>
STATEMENT OF ASSETS
AND LIABILITIES
November 30, 1995
ASSETS:
Investments in securities:
Common stocks, at market value
(identified cost $31,579,225) $ 38,324,029
Repurchase agreement, at cost
_ approximates market value 2,195,000
Total investments 40,519,029
Dividends receivable 59,212
Total assets 40,578,241
LIABILITIES AND NET ASSETS:
Cash overdraft 22,704
Payable for investments purchased 112,941
Total liabilities 135,645
NET ASSETS $ 40,442,596
NET ASSETS CONSIST OF:
Capital (capital stock and paid-in capital) $ 31,502,037
Accumulated undistributed income:
Undistributed net investment income 219,166
Undistributed net realized gain on
investment transactions 1,976,589
Net unrealized appreciation in value of
investments 6,744,804
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $ 40,442,596
Capital shares, $1.00 par value
Authorized 10,000,000
Outstanding 2,107,448
NET ASSET VALUE PER SHARE $ 19.19
<PAGE>
STATEMENT OF OPERATIONS
Year Ended November 30, 1995
INVESTMENT INCOME:
Income:
Dividends $ 594,344
Interest 70,337
664,681
Expenses (Note 2):
Management fees 528,499
Registration fees and expenses 22,031
550,530
Net investment income (Note 1-B) 114,151
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Realized gain from investment transactions
(excluding maturities of short-term commercial
notes and repurchase agreements):
Proceeds from sales of investments 9,264,132
Cost of investments sold 7,321,797
Net realized gain from investment transactions 1,942,335
Unrealized appreciation of investments:
Beginning of year 2,153,897
End of year 6,744,804
Unrealized appreciation of investments during
the year 4,590,907
Net gain on investments 6,533,242
Increase in net assets resulting from operations $ 6,647,393
<PAGE>
STATEMENTS OF CHANGES
IN NET ASSETS
For The Two Years Ended November 30, 1995
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income $ 114,151 $ 48,431
Net realized gain from investment transactions 1,942,335 189,460
Unrealized appreciation (depreciation) of
investments during the period 4,590,907 (1,532,368)
Net increase (decrease) in net assets
resulting from operations 6,647,393 (1,294,477)
Net equalization included in the price of
shares issued and redeemed (7,266) 22,219
DISTRIBUTIONS TO SHAREHOLDERS FROM:**
Net investment income (48,739) _
Net realized gain from investment transactions (189,170) (562,551)
Total distributions to shareholders (237,909) (562,551)
INCREASE FROM CAPITAL SHARE TRANSACTIONS:*
Proceeds from shares sold 11,197,619 21,674,616
Net asset value of shares issued for
reinvestment of distributions 227,612 527,332
11,425,231 22,201,948
Cost of shares repurchased (13,313,350) (13,524,953)
Net increase (decrease) from capital
share transactions (1,888,119) 8,676,995
Total increase in net assets 4,514,099 6,842,186
NET ASSETS:
Beginning of year 35,928,497 29,086,311
End of year (including undistributed
net investment income of $219,166 in
1995 and $161,020 in 1994) $ 40,442,596 $ 35,928,497
Shares issued and repurchased:
Number of shares sold 651,909 1,256,848
Number of shares issued for reinvestment
of distributions 14,388 30,482
666,297 1,287,330
Number of shares repurchased (773,550) (791,675)
Net increase (decrease) (107,253) 495,655
Distributions to shareholders:
Income dividends per share $ .0219 $ _
Capital gains distribution per share $ .085 $ .3283
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940, as amended,
as a diversified open-end management investment company. The following is a
summary of significant accounting policies consistently followed by the Fund
in the preparation of its financial statements.
A. Security Valuation _ Common stocks traded on a national securities
exchange are valued at the latest sales price, or if no sale was reported on
that date, the mean between the closing bid and asked price is used. Common
stocks traded over-the-counter are valued at the average of the last reported
bid and asked prices.
B. Federal and State Taxes _ It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Therefore, no provision for federal or state tax is required. The Fund has
designated $189,460 as capital gain dividends.
C. Equalization _ The Fund uses the accounting practice of equalization, by
which a portion of the proceeds from sales and costs of redemption of capital
shares, equivalent on a per share basis to the amount of undistributed net
investment income on the date of the transactions, is credited or charged to
undistributed income. As a result, undistributed net investment income per
share is unaffected by sales or redemptions of capital shares.
D. Other _ Security transactions are accounted for on the date the securities
are purchased or sold. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Realized gains and losses from investment
transactions and unrealized appreciation and depreciation of investments are
reported on the identified cost basis.
2. MANAGEMENT FEES:
Management fees were paid to Jones & Babson, Inc. at the rate of 1.5% per
annum of the average daily net asset value of the Fund up to $30,000,000 and
1% per annum of net assets in excess of that amount. Such fees are paid for
services which include administration, and all other operating expenses of
the Fund except the cost of acquiring and disposing of portfolio securities,
the taxes, if any, imposed directly on the Fund and its shares and the cost
of qualifying the Fund's shares for sale in any jurisdiction. Certain
officers and/or directors of the Fund are also officers and/or directors of
Jones & Babson, Inc.
3. INVESTMENT TRANSACTIONS:
Investment transactions for the year ended November 30, 1995 (excluding
maturities of short-term commercial notes and repurchase agreements) are as
follows:
Purchases $ 5,481,868
Proceeds from sales 9,264,132
<PAGE>
FINANCIAL HIGHLIGHTS
Condensed data for a share of capital stock outstanding throughout each
period.
<TABLE>
<CAPTION>
Years Ended For Period From
November 30, August 5, 1991
1995 1994 1993 1992 to November 30, 1991*
</CAPTION>
<S> <C> <C> <C> <C>
Net asset value, beginning of period $16.22 $16.92 $14.47 $12.07 $12.19
Income (loss) from investment operations:
Net investment income (loss) .053 .020 (.019) (.020) .052
Net gains or losses on securities
(both realized and unrealized) 3.024 (.392) 2.501 2.455 (.172)
Total from investment operations 3.077 (.372) 2.482 2.435 (.120)
Less distributions:
Dividends from net investment income (.022) _ _ (.035) _
Distributions from capital gains (.085) (.328) (.032) _ _
Total distributions (.107) (.328) (.032) (.035) _
Net asset value, end of period $19.19 $16.22 $16.92 $14.47 $12.07
Total return 19% (2)% 17% 20% (1)%
Ratios/Supplemental Data
Net assets, end of year (in millions) $ 40 $ 36 $ 29 $ 11 $ 3
Ratio of expenses to average net assets 1.45% 1.50% 1.60% 1.83% 1.49%
Ratio of net investment income (loss)
to average net assets .30% .14% (.14)% (.11)% .76%
Portfolio turnover rate 15% 9% 18% 14% 13%
</TABLE>
*The Fund was capitalized on April 17, 1991 with $366,705, representing
30,000 shares at a net asset value of $12.22 per share.
Initial public offering was made on August 5, 1991, at which time net asset
value was $12.19 per share.
Ratios for this initial period of operation are annualized.
<PAGE>
REPORT OF ERNST & YOUNG LLP
INDEPENDENT AUDITORS
The Board of Directors and Shareholders of
Babson Enterprise Fund II, Inc.:
We have audited the accompanying statement of assets and liabilities,
including the statement of net assets, of Babson Enterprise Fund II, Inc.,
as of November 30, 1995, the related statements of operations for the year
then ended, changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the four fiscal years
in the period ended November 30, 1995 and for the period from August 5, 1991
to November 30, 1991. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
investments owned as of November 30, 1995, by correspondence with the
custodian. As to securities relating to uncompleted transactions, we
performed other auditing procedures. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Babson Enterprise Fund II, Inc. at November 30, 1995, the results of its
operations and the changes in its net assets, and the financial highlights
for the periods indicated above, in conformity with generally accepted
accounting principles.
Kansas City, Missouri
December 28, 1995
This report has been prepared for the information of the Shareholders of
Babson Enterprise Fund II, Inc. and is not to be construed
as an offering of the shares of the Fund. Shares of this Fund and of the
other Babson Funds are offered only by the Prospectus,
a copy of which may be obtained from Jones & Babson, Inc.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000873076
<NAME> BABSON ENTERPRISE FUND II INC
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1995
<PERIOD-END> NOV-30-1995
<INVESTMENTS-AT-COST> 33774225
<INVESTMENTS-AT-VALUE> 40519029
<RECEIVABLES> 59212
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 40578241
<PAYABLE-FOR-SECURITIES> 112941
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 22704
<TOTAL-LIABILITIES> 135645
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 31502037
<SHARES-COMMON-STOCK> 2107448
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 219166
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1976589
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6744804
<NET-ASSETS> 40442596
<DIVIDEND-INCOME> 594344
<INTEREST-INCOME> 70337
<OTHER-INCOME> 0
<EXPENSES-NET> 550530
<NET-INVESTMENT-INCOME> 114151
<REALIZED-GAINS-CURRENT> 1942335
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 6647393
<EQUALIZATION> (7266)
<DISTRIBUTIONS-OF-INCOME> 48739
<DISTRIBUTIONS-OF-GAINS> 189170
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 651909
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 14388
<NET-CHANGE-IN-ASSETS> (107253)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 528499
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 16.22
<PER-SHARE-NII> .053
<PER-SHARE-GAIN-APPREC> 3.024
<PER-SHARE-DIVIDEND> .022
<PER-SHARE-DISTRIBUTIONS> 0.107
<RETURNS-OF-CAPITAL> 19
<PER-SHARE-NAV-END> 19.19
<EXPENSE-RATIO> 1.45
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
