THE ENTERPRISE Group of Funds, Inc.

ANNUAL REPORT

December 31, 2002

THE ENTERPRISE Group of Funds, Inc.

Aggressive Stock

Enterprise Mid-Cap Growth Fund

Enterprise Multi-Cap Growth Fund

Enterprise Small Company Growth Fund

Enterprise Small Company Value Fund

Stock

Enterprise Capital Appreciation Fund

Enterprise Deep Value Fund

Enterprise Equity Fund

Enterprise Equity Income Fund

Enterprise Growth Fund

Enterprise Growth and Income Fund

International

Enterprise International Growth Fund

Sector/Specialty

Enterprise Global Financial Services Fund

Enterprise Global Health Care Fund

Enterprise Global Socially Responsive Fund

Enterprise Mergers and Acquisitions Fund

Enterprise Technology Fund

Domestic Hybrid

Enterprise Managed Fund

Enterprise Strategic Allocation Fund

Income

Enterprise Government Securities Fund

Enterprise High-Yield Bond Fund

Enterprise Short Duration Bond Fund

Enterprise Tax-Exempt Income Fund

Enterprise Total Return Fund

Money Market

Enterprise Money Market Fund

Table of Contents

	Page
Enterprise Mid-Cap Growth Fund
Subadviser’s Comments	4
Portfolio of Investments	6
Enterprise Multi-Cap Growth Fund
Subadviser’s Comments	8
Portfolio of Investments	10
Enterprise Small Company Growth Fund
Subadviser’s Comments	12
Portfolio of Investments	14
Enterprise Small Company Value Fund
Subadviser’s Comments	16
Portfolio of Investments	18
Enterprise Capital Appreciation Fund
Subadviser’s Comments	24
Portfolio of Investments	26
Enterprise Deep Value Fund
Subadviser’s Comments	28
Portfolio of Investments	30
Enterprise Equity Fund
Subadviser’s Comments	32
Portfolio of Investments	34
Enterprise Equity Income Fund
Subadviser’s Comments	35
Portfolio of Investments	37
Enterprise Growth Fund
Subadviser’s Comments	39
Portfolio of Investments	41
Enterprise Growth and Income Fund
Subadviser’s Comments	42
Portfolio of Investments	44
Enterprise International Growth Fund
Subadviser’s Comments	46
Portfolio of Investments	48
Enterprise Global Financial Services Fund
Subadviser’s Comments	49
Portfolio of Investments	51
Enterprise Global Health Care Fund
Subadviser’s Comments	52
Portfolio of Investments	54

	Page
Enterprise Global Socially Responsive Fund
Subadviser’s Comments	56
Portfolio of Investments	58
Enterprise Mergers and Acquisitions Fund
Subadviser’s Comments	60
Portfolio of Investments	62
Enterprise Technology Fund
Subadviser’s Comments	65
Portfolio of Investments	67
Enterprise Managed Fund
Subadviser’s Comments	69
Portfolio of Investments	71
Enterprise Strategic Allocation Fund
Subadviser’s Comments	78
Portfolio of Investments	80
Enterprise Government Securities Fund
Subadviser’s Comments	87
Portfolio of Investments	89
Enterprise High-Yield Bond Fund
Subadviser’s Comments	90
Portfolio of Investments	92
Enterprise Short Duration Bond Fund
Subadviser’s Comments	98
Portfolio of Investments	100
Enterprise Tax-Exempt Income Fund
Subadviser’s Comments	101
Portfolio of Investments	103
Enterprise Total Return Fund
Subadviser’s Comments	105
Portfolio of Investments	107
Enterprise Money Market Fund
Subadviser’s Comments	114
Portfolio of Investments	115
Statements of Assets and Liabilities	118
Statements of Operations	122
Statements of Changes in Net Assets	126
Financial Highlights	134
Notes to Financial Statements	182

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.

Message from the Chairman

Dear Fellow Shareholders,

For an unprecedented third year in a row, the market continued its decline despite the beginning of an economic recovery, reflecting the mounting threat of war, a host of corporate accounting scandals that rippled to the very door of the Securities and Exchange Commission, and consumer sentiment blues that moved billions of investment dollars from stocks to bonds.

Weighing in on the upside, many economists feel that the rally the markets have experienced since the five-year lows of October 9, 2002 mark the beginning of a new upward cycle and that slow and steady growth may be experienced in 2003 and the years ahead. No doubt, twelve interest rate cuts by the Federal Reserve Board over the last two years combined with the current administration’s plans for additional tax cuts and fiscal stimulus can only help in this regard. Low inflation, modest GDP growth, an increase in manufacturing and improving employment figures also brighten the outlook for 2003.

For 2002, the Dow Jones Industrial Average was down 15.0 percent, the S&P 500 was off 22.1 percent and the NASDAQ Composite fell 31.3 percent. On the positive side, bonds performed well, assisted by investors’ apprehension over the besieged stock market, which encouraged a flight to investments believed to offer sanctuary. Treasuries and higher quality bonds rallied amid increased demand for the relative safety of the U.S. Government market. The Lehman Brothers Aggregate Bond Index advanced 10.3 percent.

While it is impossible to pinpoint at what point the markets will rebound, market ups and downs are all a natural part of the cycle. The market’s unpredictability underscores the importance of remaining diversified. A well-diversified portfolio will have exposure to those areas of the market that could benefit the most from an economic expansion. At the same time, diversification will incorporate investments in more defensive sectors including fixed income.

Many successful investors often point to commitment and determined focus over time as reasons for their accomplishment. We continue to advise investors to be patient and to temper their expectations for future equity returns. Investors should plan carefully with their financial representative, be prudent, be disciplined in investing and adhere to a practical, goal-oriented investment program.

We also encourage you to speak with your financial advisor to discuss rebalancing your portfolio, which may have shifted over the last two years from the asset allocation most appropriate to your investment strategy and risk tolerance. There is no better time than the beginning of a new year to pause and re-assess your portfolio so that you can be knowledgeable about your investments and confident that they are in line with your expectations. An annual consultation with your advisor is recommended, not only to rebalance your portfolio, but also to consider any new or changed financial goals.

In 2002, The Enterprise Group of Funds partnered with the State of Texas to develop a 529 college savings plan that is available — without age, income or residency restrictions of any kind — as an invaluable tool to help finance higher education for the next generation. Those who wish to invest may fund an account for a child, grandchild, niece, nephew, friend, anyone, including themselves, that will offer tax-free growth of the investment and tax-free withdrawals for qualified education expenses, including tuition, certain room and board expenses, books, supplies and required fees¹. Best of all, the account owner retains control of the account and can change the beneficiary at any time. The Texas 529 college savings plan provides a flexible, affordable and powerful tool for achieving your college savings needs.

For investors seeking current income consistent with preservation of capital, Enterprise recently launched the Enterprise Short Duration Bond Fund. The fund, subadvised by MONY Capital Management, Inc., seeks current income with reduced volatility of principal by investing in U.S. investment-grade fixed income investments. To minimize price fluctuations, the fund limits the portfolio to bonds with a low duration, three years or less on average.

THE ENTERPRISE Group of Funds, Inc.

2

The numerous interest rate cuts by the Federal Reserve have created a difficult situation for many investors who want positive returns on their investments with minimal risk but at a higher rate than they can get from CDs. With the Enterprise Short Duration Bond Fund, investors may have a better chance at achieving this while maintaining the flexibility of a mutual fund. It can also complement a diversified portfolio.²

Because the Short Duration Bond Fund aims to maintain a high level of share price stability, it may be ideal for “savers” and conservative investors with a low risk tolerance who seek higher income without higher risk; investors who want higher returns but less volatility than a longer-term bond portfolio; investors with near-term financial goals, e.g. retirement, college education, or other major expenses; or investors seeking diversification within a portfolio of stock and bond investments, possibly as a source of liquidity for moving into or out of higher-risk equity investments as market conditions warrant.

You can learn more about Enterprise and keep up with your account information at our web site, www.enterprisefunds.com. 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 provides a level of professional money management once reserved for only the largest institutional investors. Enterprise’s different funds are subadvised 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  $900 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.

Your confidence is our most important asset. We are committed to provide you the diverse investment choices necessary to meet your investment objectives. We encourage you to review the subadviser comments within this annual report. We believe you will find these discussions informative and insightful. 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,

Victor Ugolyn

Chairman, President and Chief Executive Officer

1 Non-qualified withdrawals may be subject to ordinary income tax on earnings, plus a 10 percent federal tax penalty.

2 Unlike CDs, investments in mutual funds are not guaranteed and not FDIC insured.

THE ENTERPRISE Group of Funds, Inc.

3

Enterprise Mid-Cap Growth Fund

SUBADVISER’S COMMENTS

Nicholas-Applegate Capital Management

San Diego, California

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

Nicholas-Applegate Capital Management (“Nicholas-Applegate”), which has approximately $16.6 billion in assets under management, became subadviser to the Fund on October 31, 2000. Nicholas-Applegate’s normal investment minimum is $10 million.

Investment Objective

The objective of the Enterprise Mid-Cap Growth Fund is to seek long-term capital appreciation.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -31.84 percent. The Fund underperformed its benchmark, the Russell 2000 Index, which returned -20.48 percent. The Fund underperformed its peer group, the Lipper Mid-Cap Growth Fund Index, which returned -28.47 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year		10/31/00-12/31/02
With Sales Charge	-35.13	%	-39.85	%
Without Sales Charge	-31.84	%	-38.48	%
Russell 2000 Index*	-20.48	%	-10.09	%
Lipper Mid-Cap Growth Fund Index*	-28.47	%	-28.82	%

Class C	1-Year		10/31/00-12/31/02
With Sales Charge	-33.55	%	-39.08	%
Without Sales Charge	-32.22	%	-38.80	%
Russell 2000 Index*	-20.48	%	-10.09	%
Lipper Mid-Cap Growth Fund Index*	-28.47	%	-28.82	%

Class B	1-Year		10/31/00-12/31/02
With Sales Charge	-35.61	%	-39.94	%
Without Sales Charge	-32.22	%	-38.80	%
Russell 2000 Index*	-20.48	%	-10.09	%
Lipper Mid-Cap Growth Fund Index*	-28.47	%	-28.82	%

Class Y	1-Year		10/31/00-12/31/02
Average Annual Return	-31.65	%	-38.23	%
Russell 2000 Index*	-20.48	%	-10.09	%
Lipper Mid-Cap Growth Fund Index*	-28.47	%	-28.82	%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

*The Russell 2000 Index is an unmanaged index of the stocks of 2000 small and mid-cap companies. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper Mid-Cap Growth Fund Index is an unmanaged index of the 30 largest funds, based on total year-end net asset value, in the Lipper Mid-Cap Growth Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

4

Enterprise Mid-Cap Growth Fund — (Continued)

SUBADVISER’S COMMENTS

The year 2002 closed with the third consecutive year of losses in the U.S. equity markets. Not since the Depression has the U.S. economy witnessed this persistent of a decline in equities; and Nicholas-Applegate believes that the U.S. economy, although uneven in its growth, is far from a depression. U.S. companies continue to benefit from productivity gains and relatively low wage costs; however, their ability to enhance profits through further cost cutting has about run its course. The U.S. markets need an uptick in revenues across sectors and industries to generate sustainable earnings gains.

The Iraqi situation continues to overhang the market, as does the threat of future terrorist acts. Once and if the Iraq situation is resolved, Nicholas-Applegate believes that conditions are ripe for economic acceleration — interest rates are historically very low, productivity is growing, consumer confidence is improving and corporate capital spending seems to be recovering.

During the year, the technology sector was the largest negative contributor to Fund performance relative to the benchmark. Energy and consumer durables positively impacted relative returns. Within energy, companies in the oilfield services have performed well with oil prices rising in response to the Iraqi situation and the strike in Venezuela.

On February 10, 2003 the Mid-Cap Growth Fund’s shareholders approved a tax free exchange of shares between the Mid-Cap Growth and Managed Funds wherein the latter fund would acquire all of the net assets of the former after the close of business on February 21, 2003.

Investments in mid-capitalization stocks are generally riskier than large-capitalization stocks due to greater earnings and price fluctuations.

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.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

5

Enterprise Mid-Cap Growth Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Domestic Common Stocks — 97.88%
Aerospace — 2.70%
L-3 Communications Holdings Inc. (a)	6,200	$	278,442
Apparel & Textiles — 1.37%
Jones Apparel Group Inc. (a)	4,000		141,760
Automotive — 0.85%
Advanced Auto Parts (a) (o)	1,800		88,020
Banking — 1.17%
Commerce Bancorp Inc.	2,800		120,932
Broadcasting — 3.54%
Entercom Communications Corp (a)	2,800		131,376
Univision Communications Inc. (Class A) (a)	5,300		129,850
Westwood One Inc. (a)	2,800		104,608
			365,834
Chemicals — 0.87%
Cabot Microelectronics Corporation (a) (o)	1,900		89,680
Computer Services — 4.56%
Emulex Corporation (a)	4,900		90,895
Internet Security Systems Inc. (a)	5,400		98,982
Network Associates Inc. (a)	8,000		128,720
Synopsys Inc. (a)	3,300		152,295
			470,892
Computer Software — 5.96%
Adobe Systems Inc.	5,400		133,925
Citrix Systems Inc. (a)	11,100		136,752
Mercury Interactive Corporation (a)	4,000		118,600
PeopleSoft Inc. (a)	6,800		124,440
Symantec Corporation (a)	2,500		101,275
			614,992
Consumer Durables — 1.01%
Harley-Davidson Inc.	2,260		104,412
Consumer Services — 1.66%
Apollo Group Inc. (Class A) (a)	3,900		171,600
Education — 0.84%
Corinthian Colleges Inc. (a)	2,300		87,078
Fiber Optics — 0.87%
CIENA Corporation (a)	17,400		89,436
Finance — 2.47%
Capital One Financial Corporation	3,700		109,964
SLM Corporation	1,400		145,404
			255,368

	Number of Shares or Principal Amount	Value
Health Care — 2.63%
Anthem Inc. (a)	2,900	$	182,410
Triad Hospitals Inc. (a)	3,000		89,490
			271,900
Hotels & Restaurants — 1.13%
Starbucks Corporation (a)	5,740		116,981
Manufacturing — 3.19%
Danaher Corporation	1,700		111,690
Harman International Industries Inc.	2,100		124,950
Valspar Corporation	2,100		92,778
			329,418
Medical Instruments — 4.97%
Boston Scientific Corporation (a)	4,100		174,332
Stryker Corporation	1,700		114,104
Zimmer Holdings Inc. (a)	5,400		224,208
			512,644
Medical Services — 6.02%
Biogen Inc. (a)	4,100		164,246
CTI Molecular Imaging Inc. (a)	3,900		96,174
Genzyme Corporation (a)	3,600		106,452
Lincare Holdings Inc. (a)	4,900		154,938
Universal Health Services Inc. (Class B) (a)	2,200		99,220
			621,030
Metals & Mining — 2.27%
Fastenal Company	3,300		123,387
Newmont Mining Corporation	3,800		110,314
			233,701
Multi-Line Insurance — 1.75%
Brown & Brown Inc.	5,600		180,992
Oil Services — 11.12%
Apache Corporation	1,900		108,281
BJ Services Company (a)	5,940		191,921
EOG Resources Inc.	4,200		167,664
Halliburton Company	5,400		101,034
Patterson-UTI Energy Inc. (a)	4,100		123,697
Rowan Companies Inc. (a)	7,860		178,422
Smith International Inc. (a)	4,980		162,448
Valero Energy Corporation	3,100		114,514
			1,147,981
Pharmaceuticals — 9.92%
Accredo Health Inc. (a)	4,850		170,962
Cephalon Inc. (a) (o)	1,900		92,469
Forest Laboratories Inc. (a)	2,240		220,013
Gilead Sciences Inc. (a)	6,800		231,200
MedImmune Inc. (a)	4,100		111,397
Scios Inc. (a)	3,200		104,256
WebMD Corporation (a)	11,000		94,050
			1,024,347

THE ENTERPRISE Group of Funds, Inc.

6

Enterprise Mid-Cap Growth Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Restaurants — 1.00%
Outback Steakhouse Inc.	3,000	$	103,320
Retail — 10.32%
Bed Bath & Beyond Inc. (a)	6,400		220,992
Coach Inc. (a)	5,100		167,892
Gap Inc.	7,500		116,400
Michaels Stores Inc. (a)	3,000		93,900
PETCO Animal Supplies Inc. (a)	4,300		100,788
Reebok International Ltd. (a)	6,400		188,160
TJX Companies Inc.	9,100		177,632
			1,065,764
Semiconductors — 6.05%
Integrated Circuit Systems Inc. (a)	7,200		131,400
Novellus Systems Inc. (a)	4,400		123,552
Skyworks Solutions Inc. (a)	14,300		123,266
Teradyne Inc. (a)	10,500		136,605
Xilinx Inc. (a)	5,300		109,180
			624,003
Technology — 4.29%
Alliant Techsystems Inc. (a)	4,500		280,575
Microchip Technology Inc.	6,650		162,593
			443,168
Transportation — 2.10%
J.B. Hunt Transport Services Inc. (a)	7,400		216,820
Travel/Entertainment/Leisure — 1.37%
Regal Entertainment Group (Class A)	6,600		141,372
Waste Management — 1.04%
Stericycle Inc. (a)	3,300		106,851
Wireless Communications — 0.84%
Sprint PCS (a)	19,800		86,724
Total Domestic Common Stocks
(Identified cost $9,831,097)			10,105,462

	Number of Shares or Principal Amount		Value
Repurchase Agreement — 2.69%
State Street Bank & Trust Repurchase Agreement, 0.95% due 01/02/03 Proceeds $278,015 Collateral: U.S. Treasury Note $285,000, 2.00% due 11/30/04, Value $288,351	$	278,000	$	278,000
Total Repurchase Agreement
(Identified cost $278,000)				278,000
Total Investments
(Identified cost $10,109,097)			$	10,383,462
Other Assets Less Liabilities — (0.57)%				(58,842)
Net Assets — 100%			$	10,324,620

(a) Non-income producing security.

(o) Security, or portion thereof, out on loan at December 31, 2002.

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

7

8

Enterprise Multi-Cap Growth Fund

SUBADVISER’S COMMENTS

Fred Alger Management, Inc.

New York, New York

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

Fred Alger Management, Inc. (“Alger”), which has approximately $8.4 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.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -35.82 percent. The Fund underperformed its benchmark, the S&P 500 Index, which returned -22.11 percent. The Fund underperformed its peer group, the Lipper Multi-Cap Growth Fund Index, which returned -29.82 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year	07/01/99-12/31/02
With Sales Charge	-38.84%	-0.54%
Without Sales Charge	-35.82%	0.86%
S&P 500 Index*	-22.11%	-10.73%
Lipper Multi-Cap Growth Fund Index*	-29.82%	-13.93%

Class C	1-Year	07/01/99-12/31/02
With Sales Charge	-37.40%	0.00%
Without Sales Charge	-36.12%	0.29%
S&P 500 Index*	-22.11%	-10.73%
Lipper Multi-Cap Growth Fund Index*	-29.82%	-13.93%

Class B	1-Year	07/01/99-12/31/02
With Sales Charge	-39.39%	-0.57%
Without Sales Charge	-36.20%	0.29%
S&P 500 Index*	-22.11%	-10.73%
Lipper Multi-Cap Growth Fund Index*	-29.82%	-13.93%

Class Y	1-Year	07/01/99-12/31/02
Average Annual Return	-35.59%	1.26%
S&P 500 Index*	-22.11%	-10.73%
Lipper Multi-Cap Growth Fund Index*	-29.82%	-13.93%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.

*The S&P 500 Index is an unmanaged broad-based index that includes the common stock of 500 companies that tend to be important leaders in important industries within the U.S. economy. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper Multi-Cap Growth Fund Index is an unmanaged index of the 30 largest funds, based on total year-end net asset value, in the Lipper Multi-Cap Growth Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper Multi-Cap Growth Fund Index replaces the Lipper Large-Cap Growth Fund Index as the narrow-based benchmark for the Fund as it more appropriately reflects the Fund’s narrow-based market. During 2002, an investment in the above hypothetical account for the Enterprise Multi-Cap Growth Fund decreased by $5,478 compared to a decrease of $2,070 in the Lipper Large-Cap Growth Fund Index and a decrease of $2,514 in the Lipper Multi-Cap Growth Fund Index. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

8

Enterprise Multi-Cap Growth Fund — (Continued)

SUBADVISER’S COMMENTS

The Fund’s underperformance was due to down equity markets, extremely poor sentiment in the heaviest sectors of the Fund and most stocks in the Fund moving lower. Over-weighting in the weak technology sector and poor performing financials stocks most negatively impacted the Fund’s performance. Alger believed that several of the Fund’s holdings that were liquidated during 2002 also suffered lacking performance. These stocks include Baxter International, Brocade Communications Systems, Chico’s Fashions, Concord EFS, Emulex Corporation, Siebel Systems, and Tyco International. Also, the majority of stocks Alger added in 2002 decreased in value.

The twelve months ended December 31, 2002 was an extraordinarily difficult period for equity securities. The first quarter of the year brought an abrupt end to the momentum experienced in the last few months of 2001. After slashing interest rates in dramatic fashion throughout 2001, the Federal Reserve Board (“Fed”) failed to cut the Fed Funds rate any further during the quarter. Furthermore, the Enron affair and continued violence in Afghanistan and the Middle East cast a pall over the markets at a time when Alger believes other news should have led to a modest rally. Most equity indices slipped lower during January and February, with value stocks holding up far better than growth stocks. Stock prices did recover somewhat during March, however, with growth stocks leading the rally. On aggregate over the three-month period, growth stock indices finished in negative territory while value stock indices were mostly flat.

The second quarter of 2002 brought more suffering on equity investors. Despite a steady stream of economic data indicating growth in the U.S. economy and a recovery of corporate profits, the market continued to drop on news of further corporate malfeasance. Furthermore, while the Fed continued to maintain interest rates at historically low levels, the absence of further rate cuts provided no impetus for renewed investor optimism. April, May and June saw the continued collapse of most equity indices, with growth stocks and large cap stocks leading the downturn.

Markets continued their downward spiral throughout the third quarter. Unsettled by negative earnings pre-announcements, weaker consumer confidence and disappointing job growth, investors found very little reason to buy. Furthermore, concern over a possible war with Iraq and unresolved corporate accounting scandals helped to exacerbate the selling. Despite the steep decline in stock prices, the Fed decided against any further rate cuts during the three-month period. July, August and September saw the continued collapse of most equity indices, with small cap stocks leading the decline. By the end of September, the Nasdaq had dropped to six-year lows while the S&P 500 reached lows not seen in over five years.

After three consecutive quarters of declines, equity markets found some much needed relief in the fourth quarter of 2002. Fueled in part by solid earnings from bellwethers like Citigroup, IBM and General Motors, a Republican sweep in the midterm elections, and the resignation of Harvey Pitt from the SEC, markets trended higher during the first two months of the fourth quarter. Investor optimism was further encouraged by a larger-than-expected 0.50 percent rate cut by the Fed on November 6th. The positive momentum, however, came to a sudden end during the final month of the year. With tensions escalating in Iraq and North Korea, continued political turmoil in Venezuela, a weak holiday shopping season and the highest unemployment rate in eight years, investors, once again, reversed course and began to unload their equity positions. December saw the collapse of most equity indices, with growth stocks leading the downturn. As 2002 began to wind down, economic and geopolitical uncertainty seemed to be largely driving the markets. Nevertheless, investors seemed to be cautiously optimistic that 2003 would bring an ultimate end to three straight years of market declines.

Investments in small-capitalization and mid-capitalization stocks are generally riskier than large-capitalization stocks due to greater earnings and price fluctuations.

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.

9

Enterprise Multi-Cap Growth Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Domestic Common Stocks — 93.09%
Biotechnology — 3.72%
Amgen Inc. (a)	56,000	$	2,707,040
Broadcasting — 0.99%
Viacom Inc. (Class B) (a)	17,600		717,376
Building & Construction — 1.03%
Lowe’s Companies Inc.	20,000		750,000
Computer Hardware — 1.91%
Cisco Systems Inc. (a)	54,800		717,880
EMC Corporation (a)	109,400		671,716
			1,389,596
Computer Services — 3.46%
Affiliated Computer Services Inc. (a)	37,980		1,999,647
Juniper Networks Inc. (a)	76,400		519,520
			2,519,167
Computer Software — 8.41%
Intuit Inc. (a)	30,300		1,421,676
Microsoft Corporation (a)	47,225		2,441,532
Oracle Corporation (a)	208,600		2,252,880
			6,116,088
Consumer Services — 2.78%
Apollo Group Inc. (Class A) (a)	17,600		774,400
Career Education Corporation (a)	31,200		1,248,000
			2,022,400
Electrical Equipment — 1.79%
Intersil Corporation (Class A) (a)	93,200		1,299,208
Electronics — 1.93%
KLA-Tencor Corporation (a)	39,600		1,400,652
Entertainment & Leisure — 1.94%
International Game Technology (a)	18,600		1,412,112
Fiber Optics — 0.95%
CIENA Corporation (a)	135,100		694,414
Finance — 1.74%
SLM Corporation	12,200		1,267,092
Food, Beverages & Tobacco — 0.99%
Coca-Cola Company	16,400		718,648
Health Care — 3.48%
Anthem Inc. (a)	27,800		1,748,620
HCA Inc.	18,800		780,200
			2,528,820
Insurance — 1.06%
AFLAC Inc.	25,600		771,072

	Number of Shares or Principal Amount	Value
Medical Instruments — 6.59%
Boston Scientific Corporation (a)	45,100	$	1,917,652
St. Jude Medical Inc. (a)	15,140		601,361
Varian Medical Systems Inc. (a)	12,800		634,880
Zimmer Holdings Inc. (a)	39,400		1,635,888
			4,789,781
Medical Services — 3.61%
Biogen Inc. (a)	46,200		1,850,772
UnitedHealth Group Inc.	9,300		776,550
			2,627,322
Misc. Financial Services — 4.18%
Citigroup Inc.	66,500		2,340,135
Merrill Lynch & Company Inc.	18,400		698,280
			3,038,415
Multi-Line Insurance — 1.12%
Willis Group Holdings Ltd. (a)	28,300		811,361
Oil Services — 1.42%
Cooper Cameron Corporation (a)	6,640		330,805
Halliburton Company	37,500		701,625
			1,032,430
Pharmaceuticals — 20.05%
Allergan Inc.	13,000		749,060
AmerisourceBergen Corporation	29,500		1,602,145
Forest Laboratories Inc. (a)	25,400		2,494,788
Gilead Sciences Inc. (a)	50,050		1,701,700
Johnson & Johnson	28,300		1,519,993
Merck & Company Inc.	39,900		2,258,739
Pharmacia Corporation	47,300		1,977,140
Wyeth	60,800		2,273,920
			14,577,485
Publishing — 1.37%
Tribune Company	22,000		1,000,120
Retail — 11.98%
Abercrombie and Fitch Company (Class A) (a)	72,500		1,483,350
Bed Bath & Beyond Inc. (a)	22,800		787,284
Best Buy Company Inc. (a)	30,000		724,500
Dollar Tree Stores Inc. (a)	58,000		1,425,060
eBay Inc. (a)	34,900		2,366,918
Gap Inc.	51,200		794,624
Wal-Mart Stores Inc.	22,300		1,126,373
			8,708,109
Semiconductors — 4.63%
Maxim Integrated Products Inc.	61,400		2,028,656
National Semiconductor Corporation (a)	89,300		1,340,393
			3,369,049

THE ENTERPRISE Group of Funds, Inc.

10

Enterprise Multi-Cap Growth Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Technology — 1.28%
Alliant Techsystems Inc. (a)	14,900	$	929,015
Travel/Entertainment/Leisure — 0.68%
Hotels.com (Class A) (a)	9,000		491,670
Total Domestic Common Stocks
(Identified cost $70,755,657)			67,688,442
Foreign Stocks — 4.98%
Medical Services — 1.36%
Alcon Inc. (a)	25,100		990,195
Pharmaceuticals — 1.61%
Teva Pharmaceutical Industries Ltd. (ADR)	30,300		1,169,883
Semiconductors — 0.94%
Marvell Technology Group Ltd. (a)	36,200		682,732
Wireless Communications — 1.07%
Vodafone Group (ADR)	42,800		775,536
Total Foreign Stocks
(Identified cost $3,706,657)			3,618,346

	Number of Shares or Principal Amount		Value
Repurchase Agreement — 2.27%
State Street Bank & Trust Repurchase Agreement, 0.95% due 01/02/03, Proceeds $1,652,087 Collateral: U.S. Treasury Note $1,670,000, 2.00% due 11/30/04, Value $1,689,636	$	1,652,000	$	1,652,000
Total Repurchase Agreement
(Identified cost $1,652,000)				1,652,000
Total Investments
(Identified cost $76,114,314)			$	72,958,788
Other Assets Less Liabilities — (0.34)%				(248,162)
Net Assets — 100%			$	72,710,626

(a) Non-income producing security.

(ADR) American Depository Receipt.

See notes to financial statements.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

11

Enterprise Small Company Growth Fund

SUBADVISER’S COMMENTS

William D. Witter, Inc.

New York, New York

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

William D. Witter, Inc. (“Witter”), which has approximately $1.3 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.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -24.71 percent. The Fund underperformed its benchmark, the Russell 2000 Index, which returned -20.48 percent. By comparison, the Fund outperformed its peer group, the Lipper Small-Cap Growth Fund Index, which returned -27.63 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year	5-Year	07/31/97-12/31/02
With Sales Charge	-28.28%	-0.68%	-1.29%
Without Sales Charge	-24.71%	0.30%	-0.40%
Russell 2000 Index*	-20.48%	-1.36%	-0.17%
Lipper Small-Cap Growth Fund Index*	-27.63%	-1.22%	-0.99%

Class C	1-Year	5-Year	07/31/97-12/31/02
With Sales Charge	-26.60%	-0.47%	-1.15%
Without Sales Charge	-25.12%	-0.27%	-0.96%
Russell 2000 Index*	-20.48%	-1.36%	-0.17%
Lipper Small-Cap Growth Fund Index*	-27.63%	-1.22%	-0.99%

Class B	1-Year	5-Year	07/31/97-12/31/02
With Sales Charge	-28.87%	-0.70%	-1.18%
Without Sales Charge	-25.12%	-0.34%	-1.02%
Russell 2000 Index*	-20.48%	-1.36%	-0.17%
Lipper Small-Cap Growth Fund Index*	-27.63%	-1.22%	-0.99%

Class Y	1-Year	5-Year	10-Year
Average Annual Return	-24.40%	0.74%	10.94%
Russell 2000 Index*	-20.48%	-1.36%	7.15%
Lipper Small-Cap Growth Fund Index*	-27.63%	-1.22%	6.83%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.

*The Russell 2000 Index is an unmanaged index of the stocks of 2000 small and mid-cap companies. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper Small-Cap Growth Fund Index is an unmanaged index of the 30 largest funds, based on total year-end net asset value, in the Lipper Small-Cap Growth Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

12

Enterprise Small Company Growth Fund — (Continued)

SUBADVISER’S COMMENTS

The year 2002 began with cautious optimism. In the first quarter, investors were encouraged by the record rate of inventory liquidation in the fourth quarter of 2001. While the price of oil moved up from $19.84 per barrel to $26.31 within three months due to concerns about the Middle East, most prices stayed virtually unchanged. Interest rates, under the influence of an accommodative policy of the Fed, remained low with three month maturity U.S. Treasury Bills yielding 1.77 percent at the first quarter’s end. The Fund benefited during that period with technology stocks such as Cymer Inc. and Trikon Technologies, Inc. appreciating. By the second quarter, confidence that the economic recovery would follow the pattern of past expansions by quickly generating a GDP growth rate of 5 percent or more began to disappear. Reports of restatements of corporate earnings developed some serious concerns. The prospect of war with Iraq and a sense of vulnerability of the U.S. to additional acts of terrorism further reduced investors’ interest in buying more equities. Rather than the negative trend changing in the third quarter, the level of pessimism increased. Most of the success in the market was achieved by hedge funds that sold short. Over 60 percent of the Fund was invested in growth issues, which were economically sensitive such as Advanced Marketing Services, Navigant International, On Assignment Inc. and the various technology holdings. Only a small percentage of the Fund’s holdings advanced during that period. Those equities were primarily of medical device companies.

The broad decline continued until October 9th when, even without any obvious positive macro developments, all the indices begun to appreciate. Leadership changed from the precious metals and real estate groups back to the more economically sensitive issues. Growth portfolios began to outperform those with a value orientation but not nearly enough for the Fund to produce positive results for the year.

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.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

13

Enterprise Small Company Growth Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Domestic Common Stocks — 91.62%
Airlines — 1.59%
Skywest Inc.	101,100	$	1,321,377
Business Services — 5.65%
Charles River Associates Inc. (a)	103,300		1,462,728
MAXIMUS Inc. (a) (o)	76,250		1,990,125
On Assignment Inc. (a) (o)	144,600		1,231,992
			4,684,845
Computer Hardware — 1.52%
Drexler Technology Corporation (a) (o)	100,300		1,263,780
Computer Services — 10.58%
CACI International Inc. (a) (o)	95,200		3,392,928
Cray Inc. (a) (o)	199,720		1,531,852
Integral Systems Inc. (a)	82,600		1,656,130
MapInfo Corporation (a) (o)	105,000		582,750
Tier Technologies Inc. (a) (o)	101,100		1,617,600
			8,781,260
Computer Software — 1.92%
MSC Software Corporation (a) (o)	105,800		816,776
PLATO Learning Inc. (a)	131,300		779,922
			1,596,698
Consumer Services — 1.59%
Navigant International Inc. (a)	106,690		1,315,488
Electrical Equipment — 10.09%
C & D Technologies	92,400		1,632,708
Electro Scientific Industries Inc. (a) (o)	98,800		1,976,000
Signal Technology Corporation (a)	66,500		716,870
Varian Inc. (a) (o)	101,500		2,912,035
Woodhead Industries	100,500		1,135,650
			8,373,263
Electronics — 5.41%
AstroPower Inc. (a) (o)	64,350		514,156
Planar Systems Inc. (a) (o)	132,000		2,723,160
Veeco Instruments Inc. (a) (o)	108,600		1,255,416
			4,492,732
Food, Beverages & Tobacco — 2.45%
Delta & Pine Land Company (o)	99,600		2,032,836
Hotels & Restaurants — 2.79%
The Cheesecake Factory (a) (o)	64,000		2,313,600

	Number of Shares or Principal Amount	Value
Manufacturing — 0.63%
Flow International Corporation (a) (o)	96,000	$	244,800
Meade Instruments Corporation (a) (o)	89,400		278,928
			523,728
Medical Instruments — 16.80%
Candela Corporation (a)	328,200		1,972,482
Cytyc Corporation (a) (o)	200,000		2,040,000
ICU Medical Inc. (a) (o)	86,450		3,224,585
Varian Medical Systems Inc. (a) (o)	74,000		3,670,400
Zoll Medical Corporation (a) (o)	85,000		3,031,950
			13,939,417
Medical Services — 2.97%
Impath Inc. (a) (o)	124,800		2,461,056
Oil Services — 9.25%
Cimarex Energy Company (a)	121,000		2,165,900
Devon Energy Corporation	32,300		1,482,570
Smith International Inc. (a) (o)	97,600		3,183,712
Ultra Petroleum Corporation (a)	85,000		841,500
			7,673,682
Retail — 3.27%
Advanced Marketing Services Inc. (o)	139,100		2,044,770
Angelica Corporation	32,300		666,995
			2,711,765
Semiconductors — 7.13%
Genesis Microchip Inc. (a) (o)	75,000		978,750
Intermagnetics General Corporation (a) (o)	138,500		2,720,140
MKS Instruments Inc. (a) (o)	52,551		863,413
Photronics Inc. (a) (o)	98,800		1,353,560
			5,915,863
Technology — 6.07%
Flir Systems Inc. (a) (o)	84,700		4,133,360
Trikon Technologies Inc. (a)	180,600		903,000
			5,036,360
Travel/Entertainment/Leisure — 1.62%
Polaris Industries Inc. (o)	23,000		1,347,800
Waste Management — 0.29%
Clean Harbors Inc. (a) (o)	15,500		240,560
Total Domestic Common Stocks
(Identified cost $93,285,097)			76,026,110

THE ENTERPRISE Group of Funds, Inc.

14

Enterprise Small Company Growth Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Foreign Stocks — 1.56%
Oil Services — 1.56%
Core Laboratories (a) (o)		114,200	$	1,296,170
Total Foreign Stocks
(Identified cost $1,507,404)				1,296,170
Commercial Paper — 6.89%
Philip Morris Companies Inc. 1.35% due 01/09/03	$	2,717,000		2,716,185
Rabobank Nederland 1.20% due 01/02/03		3,005,000		3,004,900

	Value
Total Commercial Paper
(Identified cost $5,721,085)	$	5,721,085
Total Investments
(Identified cost $100,513,586)	$	83,043,365
Other Assets Less Liabilities — (0.07)%		(59,180)
Net Assets — 100%	$	82,984,185

(a) Non-income producing security.

(o) Security, or portion thereof, out on loan at December 31, 2002.

See notes to financial statements.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

15

Enterprise Small Company Value Fund

SUBADVISER’S COMMENTS

Gabelli Asset Management Company

Rye, New York

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

Gabelli Asset Management Company (“Gabelli”), which manages approximately $21.3 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.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -11.88 percent. The Fund outperformed its benchmark, the Russell 2000 Index, which returned -20.48 percent. By comparison, the Fund underperformed its peer group, the Lipper Small-Cap Value Fund Index, which returned -11.20 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year	5-Year	10/01/93-12/31/02
With Sales Charge	-16.09%	2.69%	8.51	%
Without Sales Charge	-11.88%	3.70%	9.09	%
Russell 2000 Index*	-20.48%	-1.36%	6.06	%
Lipper Small-Cap Value Fund Index*	-11.20%	2.81%	9.00	%

Class  C	1-Year	5-Year	05/01/97-12/31/02
With Sales Charge	-14.14%	2.97%	8.16%
Without Sales Charge	-12.42%	3.18%	8.34%
Russell 2000 Index*	-20.48%	-1.36%	3.29%
Lipper Small-Cap Value Fund Index*	-11.20%	2.81%	7.19%

Class B	1-Year	5-Year	05/01/95-12/31/02
With Sales Charge	-16.67%	2.77%	9.26%
Without Sales Charge	-12.35%	3.09%	9.26%
Russell 2000 Index*	-20.48%	-1.36%	6.31%
Lipper Small-Cap Value Fund Index*	-11.20%	2.81%	9.54%

Class Y	1-Year	5-Year	05/31/95-12/31/02
Average Annual Return	-11.46%	4.25%	10.26	%
Russell 2000 Index*	-20.48%	-1.36%	6.14	%
Lipper Small-Cap Value Fund Index*	-11.20%	2.81%	9.37	%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.

*The Russell 2000 Index is an unmanaged index of the stocks of 2000 small and mid-cap companies. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper Small-Cap Value Fund Index is an unmanaged index of the 30 largest funds, based on year-end net asset value, in the Lipper Small-Cap Value Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

16

Enterprise Small Company Value Fund — (Continued)

SUBADVISER’S COMMENTS

The Fund’s best performers for the year came from a broad range of industries. Stocks that doubled in price included industrial names such as Crown, Cork & Seal Inc., Marine Products Corporation and Tenneco Automotive Inc. Retailing, specifically Rawlings Sporting Goods, and gaming stocks, like Trump Hotel & Casino Resorts, Inc., also assisted in the performance of the Fund. Media and telecommunication stocks, specifically wireless telephone companies, were the year’s worst performers. After significantly outperforming large capitalization stocks in 2000 and 2001, small cap stocks fell back to the pack in 2002 with the Russell 2000 Index edging the S&P 500 Index by just a few percentage points. The Fund held up well relative to the small cap laden Russell 2000 Index.

The year 2002 was the first time since the early 1940s that stock prices fell in three consecutive years. While expectations for an improving economy were generally realized, the pace of activity was sluggish outside of the housing sector. Consequently, the weight of concerns regarding the Middle East, North Korea, homeland security and domestic corporate and accounting scandals took their toll on equities.

With the lowest interest rates in decades, homeowners were busy refinancing mortgages and buying new homes. The refinancing bonanza helped to fuel badly needed consumer spending, while corporate spending remained in check, even though a victim of eroding confidence and corporate downsizing. Some feared the emergence of a housing bubble, although such concerns appear limited to a few higher income pockets of the country. Low borrowing costs, including subsidized zero percent financing, sustained a healthy level of auto sales.

After surprisingly strong third quarter Gross Domestic Product (“GDP”) growth, the economy appeared to have lost momentum in the fourth quarter. While unemployment in the 6 percent range is not high by historical standards, the lack of new job growth was disappointing. The decline in durable goods orders, a proxy for capital spending, in November along with disappointing holiday sales also had an impact on stock prices. Global concerns also weighed heavily, as the general strike in Venezuela, recent OPEC production cuts and the possibility of a supply disruption resulting from a conflict in Iraq once again propelled oil prices higher. High oil prices represent a heavy tax on businesses and consumers alike, and pose a real threat to a global economic recovery.

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.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

17

Enterprise Small Company Value Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Domestic Common Stocks — 95.31%
Advertising — 0.04%
Interep National Radio Sales Inc. (a)	75,000	$	174,750
Aerospace — 5.68%
AAR Corporation	60,000		309,000
Ametek Inc. (o)	115,000		4,426,350
Curtiss-Wright Corporation (Class A)	11,000		702,020
CurtissWright Corporation (Class B)	33,000		2,055,900
GenCorp Inc. (o)	585,000		4,633,200
Kaman Corporation (Class A)	230,000		2,530,000
Lockheed Martin Corporation	38,000		2,194,500
Moog Inc. (Class A) (a)	60,000		1,862,400
Sequa Corporation (Class A) (o)	25,000		977,750
Sequa Corporation (Class B)	45,500		2,024,750
SPS Technologies Inc. (a) (o)	117,400		2,788,250
			24,504,120
Apparel & Textiles — 0.33%
Carlyle Industries Inc. (a)	158,609		77,719
Hartmarx Corporation	110,000		268,400
Wolverine World Wide Inc.	70,000		1,057,700
			1,403,819
Automotive — 5.71%
A. O. Smith Corporation (Class A)	11,000		297,110
Aaron Rents Inc. (o)	2,000		45,400
AutoNation Inc. (a)	90,000		1,130,400
BorgWarner Inc.	102,000		5,142,840
Clarcor Inc.	144,867		4,674,858
Cooper Tire & Rubber Company	3,000		46,020
Earl Scheib Inc.	95,000		228,000
Exide Technologies (a) (o)	50,000		13,750
Federal-Mogul Corporation (a) (o)	20,000		4,400
Midas Inc.	310,000		1,993,300
Modine Manufacturing Company	225,000		3,978,000
Navistar International Corporation (a)	90,000		2,187,900
Raytech Corporation (a) (o)	130,000		741,000
Standard Motor Products Inc. (o)	155,000		2,015,000
Superior Industries International Inc.	32,000		1,323,520
Tenneco Automotive Inc. (a) (o)	200,000		808,000
			24,629,498
Banking — 0.58%
Crazy Woman Creek Bancorp Inc. (f)	51,000		644,130
First Republic Bank (a)	24,000		479,760
Flushing Financial Corporation	55,000		900,790
Sterling Bancorp	18,000		473,760
			2,498,440

	Number of Shares or Principal Amount	Value
Biotechnology — 0.38%
Invitrogen Corporation (a) (o)	52,000	$	1,627,080
Broadcasting — 4.07%
Beasley Broadcast Group Inc. (Class A) (a) (o)	35,000		418,600
Clear Channel Communications Inc. (a)	8,000		298,320
Crown Media Holdings Inc. (Class A) (a) (o)	40,000		90,400
Emmis Broadcasting Corporation (Class A) (a) (o)	14,000		291,620
Fisher Companies Inc. (o)	57,000		3,005,040
Granite Broadcasting Corporation (a)	335,000		686,750
Gray Television Inc.	179,000		1,745,250
Gray Television Inc. (Class A) (o)	82,000		971,700
Liberty Media Corporation (Class A) (a)	80,000		715,200
Lin TV Corporation (a) (o)	6,000		146,100
News Corporation Ltd. (ADR)	115,000		2,604,750
Paxson Communications Corporation (a)	500,000		1,030,000
Salem Communications Corporation (Class A) (a)	75,000		1,872,750
Spanish Broadcasting Systems Inc. (Class A) (a)	115,000		828,000
UnitedGlobalCom Inc. (a)	195,000		468,000
World Wrestling Federation Entertainment Inc. (Class A) (a)	53,000		426,650
Young Broadcasting Inc. (Class A) (a)	150,000		1,975,500
			17,574,630
Building & Construction — 3.05%
Core Materials Corporation (a)	325,000		357,500
Fleetwood Enterprises Inc. (a) (o)	15,000		117,750
Hughes Supply Inc.	1,000		27,320
Huttig Building Products Inc. (a)	100,000		285,000
Monaco Coach Corporation (a) (o)	6,000		99,300
Nortek Holdings Inc.	91,500		4,186,125
Rollins Inc.	318,200		8,098,190
			13,171,185
Business Services — 0.92%
Edgewater Technology Inc. (a)	390,000		1,840,800
Imagistics International Inc. (a)	6,000		120,000
Nashua Corporation (a)	172,000		1,510,160
National Processing Inc. (a) (o)	32,000		513,600
			3,984,560
Cable — 2.33%
Cablevision Systems Corporation (Class A) (a)	549,999		9,206,983
Lamson & Sessions Company (a)	155,000		499,100
Pegasus Communications Corporation (Class A) (a) (o)	270,000		353,700
			10,059,783

THE ENTERPRISE Group of Funds, Inc.

18

Enterprise Small Company Value Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Chemicals — 4.82%
Church & Dwight Company Inc.	64,500	$	1,962,735
Cytec Industries Inc. (a)	12,000		327,360
Ethyl Corporation (a)	44,000		285,560
Ferro Corporation	88,000		2,149,840
Great Lakes Chemical Corporation	230,000		5,492,400
H. B. Fuller Company	75,000		1,941,000
Hercules Inc. (a)	350,000		3,080,000
MacDermid Inc.	140,000		3,199,000
Olin Corporation (o)	90,000		1,399,500
Omnova Solutions Inc. (a)	240,000		967,200
			20,804,595
Communications — 0.45%
Loral Space & Communications (a)	300,000		129,000
Western Wireless Corporation (Class A) (a) (o)	340,000		1,802,000
			1,931,000
Computer Hardware — 0.00%
Cerion Technologies Inc. (a) (d) (m)	120,000		—
Computer Services — 0.18%
Startek Inc. (a)	13,000		358,800
Tyler Technologies Inc. (a)	50,000		208,500
Xanser Corp (a) (o)	140,000		221,200
			788,500
Computer Software — 0.04%
BARRA Inc. (a)	2,000		60,660
Global Sources Ltd. (a)	1,000		4,740
OpenTV Corporation (Class A) (a) (o)	72,000		85,680
			151,080
Conglomerates — 0.05%
Harbor Global Company Ltd. (a)	30,000		204,000
Construction — 0.01%
KB Home	1,000		42,850
Consumer Durables — 0.35%
Dana Corporation	120,000		1,411,200
Noel Group Liquidating Trust (a) (d) (g) (m)	15,000		4,200
Noel Group Units (a) (d) (g) (m)	15,000		—
Oneida Ltd.	10,000		110,300
			1,525,700
Consumer Products — 1.53%
Department 56 Inc. (a)	64,000		825,600
Elizabeth Arden Inc. (a) (o)	100,000		1,480,000
Jarden Corporation (a)	1,500		35,805
Martha Stewart Living Inc. (Class A) (a) (o)	6,000		59,220
New England Business Service Inc.	13,000		317,200

	Number of Shares or Principal Amount	Value
Rayovac Corporation (a)	46,600	$	621,178
Revlon Inc. (Class A) (a) (o)	90,000		275,400
Scotts Company (a)	6,000		294,240
Sola International Inc. (a)	145,000		1,885,000
The Dial Corporation	40,000		814,800
			6,608,443
Consumer Services — 0.96%
Chemed Corporation	117,000		4,135,950
Containers/Packaging — 0.60%
Crown Cork & Seal Inc. (a) (o)	30,000		238,500
Packaging Dynamics Corporation (a)	160,000		1,056,000
Pactiv Corporation (a)	60,000		1,311,600
			2,606,100
Drugs & Medical Products — 0.42%
Landauer Inc.	28,000		973,000
Owens & Minor Inc. (o)	50,000		821,000
			1,794,000
Education — 0.15%
Whitman Education Group Inc. (a)	85,800		655,512
Electrical Equipment — 5.29%
Ampco-Pittsburgh Corporation	62,000		753,920
Baldor Electric Company (o)	190,000		3,752,500
C & D Technologies	6,000		106,020
Donaldson Company Inc.	40,000		1,440,000
DQE Inc.	460,000		7,010,400
National Presto Industries Inc. (o)	30,000		881,400
Oak Technology Inc. (a)	280,000		742,000
Selas Corporation of America	140,000		217,000
SL Industries Inc. (a)	128,000		678,400
Thomas & Betts Corporation (a)	350,000		5,915,000
Thomas Industries Inc.	50,000		1,303,000
			22,799,640
Electronics — 0.85%
CTS Corporation (o)	140,000		1,085,000
Fargo Electronics Inc. (a)	30,000		261,600
Park Electrochemical Corporation	120,000		2,304,000
			3,650,600
Energy — 1.87%
Aquila Inc.	30,000		53,100
El Paso Electric Company	360,000		3,960,000
Maine Public Service Company	400		12,800
Mirant Corporation (a)	40,000		75,600
Nicor Inc.	70,000		2,382,100
ONEOK Inc.	30,000		576,000
Southern Union Company (a)	60,000		990,000
			8,049,600

THE ENTERPRISE Group of Funds, Inc.

19

Enterprise Small Company Value Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Entertainment & Leisure — 4.57%
Acme Communications Inc. (a)	64,000	$	510,080
Bull Run Corporation (a)	110,000		102,300
Dover Downs Gaming & Entertainment Inc.	106,000		963,540
Dover Motorsports Inc.	170,000		790,500
E.W. Scripps Company (Class A)	62,000		4,770,900
Gaylord Entertainment Company (a)	249,000		5,129,400
Hearst-Argyle Television Inc. (a)	2,000		48,220
Magna Entertainment Corporation (Class A) (a) (o)	325,000		2,015,000
Metro Goldwyn Mayer Inc. (a)	64,900		843,700
Sinclair Broadcast Group Inc. (Class A) (a)	200,000		2,326,000
Six Flags Inc. (a)	385,000		2,198,350
			19,697,990
Finance — 0.96%
BKF Capital Group Inc. (a)	74,000		1,306,100
Federal Agriculture Mortgage Corporation (a) (o)	1,000		30,640
Interactive Data Corporation (a)	145,000		1,993,750
SWS Group Inc. (o)	60,000		813,600
			4,144,090
Food, Beverages & Tobacco — 8.35%
Boston Beer Inc. (Class A) (a)	35,000		500,500
Brown Forman Corporation (Class A) (o)	10,000		670,000
Brown-Forman Corporation (Class B)	3,800		248,368
Corn Products International Inc.	155,000		4,670,150
Del Monte Foods Company (a)	155,000		1,193,500
Farmer Brothers Company	2,500		772,500
Flowers Foods Inc.	140,000		2,731,400
Hain Celestial Group Inc. (a)	25,000		380,000
Ingles Markets Inc. (Class A)	190,000		2,236,110
International Multifoods Corporation (a)	160,000		3,390,400
J & J Snack Foods Corporation (a)	1,500		53,565
J.M. Smucker Company	27,000		1,074,870
John B. Sanfilippo & Son Inc. (a)	37,000		372,590
PepsiAmericas Inc.	300,000		4,029,000
Ralcorp Holdings Inc. (a)	62,500		1,571,250
Robert Mondavi Corporation (Class A) (a) (o)	68,000		2,108,000
Sensient Technologies Corporation (o)	160,000		3,595,200
Suprema Specialties Inc. (a)	1,500		30
Triarc Companies Inc.	95,500		2,505,920
Vermont Pure Holdings, Ltd. (a)	10,000		42,500
Weis Markets Inc.	125,000		3,881,250
			36,027,103

	Number of Shares or Principal Amount	Value
Health Care — 0.13%
Henry Schein Inc. (a)	12,000	$	540,000
Hotels & Restaurants — 2.13%
Aztar Corporation (a)	230,000		3,284,400
Boca Resorts Inc. (a)	110,000		1,177,000
Dennys Corporation (a)	25,000		16,000
Extended Stay America Inc. (a)	5,000		73,750
Kerzner International Ltd. (a)	100,000		2,008,000
Lakes Gaming Inc. (a) (o)	132,000		712,668
Louisiana Quinta Corporation (a)	225,000		990,000
The Steak n Shake Company (a)	85,000		850,000
Trump Hotels & Casino Resorts Inc. (a) (o)	25,000		65,000
Wyndham International Inc. (a)	140,000		32,200
			9,209,018
Insurance — 1.53%
Argonaut Group Inc. (o)	130,000		1,917,500
Liberty Corporation	105,000		4,074,000
Midland Company	31,600		600,400
			6,591,900
Machinery — 4.20%
Baldwin Technology Company Inc. (Class A)	254,500		111,980
Fairchild Corporation (Class A) (a)	220,000		1,091,200
Flowserve Corporation (a)	250,000		3,697,500
Franklin Electric Company Inc.	22,000		1,056,220
Gardner Denver Inc. (a)	80,000		1,624,000
Gorman Rupp Company	41,700		979,950
IDEX Corporation	42,000		1,373,400
Katy Industries Inc. (a)	149,400		513,936
Paxar Corporation (a)	30,000		442,500
Robbins & Myers Inc. (o)	70,000		1,288,000
Standex International Corporation	62,000		1,478,080
Tech/Ops Sevcon Inc.	42,000		214,200
Tennant Company	43,000		1,401,800
Watts Industries Inc. (Class A)	180,000		2,833,200
			18,105,966
Manufacturing — 7.79%
Acuity Brands Inc.	100,000		1,354,000
Aviall Inc. (a) (o)	190,000		1,529,500
Barnes Group Inc.	80,000		1,628,000
Belden Inc.	98,000		1,491,560
BWAY Corporation (a)	29,000		573,620
Cooper Industries Ltd. (Class A)	48,000		1,749,600
Crane Company	145,000		2,889,850
Cuno Inc. (a)	40,000		1,324,800
Energizer Holdings Inc. (a)	30,000		837,000
Esco Technologies Inc. (a)	1,500		55,500
Fedders Corporation	290,000		820,700
Gerber Scientific Inc. (a)	140,000		568,400

THE ENTERPRISE Group of Funds, Inc.

20

Enterprise Small Company Value Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
GP Strategies Corporation (a)	35,000	$	176,750
Graco Inc.	77,000		2,206,050
Graftech International Ltd. (a)	160,000		953,600
Industrial Distribution Group Inc. (a)	78,000		240,240
Lindsay Manufacturing Company	30,000		642,000
MagneTek Inc. (a)	130,000		577,200
Material Sciences Corporation (a)	178,500		2,309,790
Myers Industries Inc.	375,000		4,012,500
Oil-Drilling Corporation of America	181,000		1,543,930
Park Ohio Holdings Corporation (a) (o)	200,000		832,000
Pentair Inc.	28,000		967,400
Precision Castparts Corporation	55,000		1,333,750
Rawlings Sporting Goods Company Inc. (o)	15,070		132,767
Roper Industries, Inc.	40,000		1,464,000
Strattec Security Corporation (a)	21,500		1,030,710
Teleflex Inc.	8,000		343,120
			33,588,337
Media — 2.30%
Gemstar-TV Guide International Inc. (a)	200,000		650,000
Media General Inc. (Class A)	155,000		9,292,250
			9,942,250
Medical Instruments — 1.90%
Dentsply International Inc.	10,000		372,000
Digene Corporation (a)	65,000		744,900
Inamed Corporation (a) (o)	40,000		1,232,000
Patterson Dental Company (a)	10,000		437,400
Sybron Dental Specialties (a)	360,000		5,346,000
Young Innovations Inc. (a)	3,000		69,810
			8,202,110
Medical Services — 1.15%
Apogent Technologies Inc. (a)	50,000		1,040,000
CIRCOR International Inc.	170,000		2,703,000
Inverness Medical Innovations Inc. (a) (o)	80,000		1,052,000
Odyssey Healthcare Inc. (a)	5,000		173,500
			4,968,500
Metals & Mining — 0.05%
TVX Gold Inc. (a) (o)	8,000		125,760
WHX Corporation (a) (o)	44,000		107,800
			233,560
Multi-Line Insurance — 0.66%
Alleghany Corporation (a)	16,000		2,840,000
Neutraceuticals — 0.17%
Weider Nutrition International Inc. (a)	500,000		725,000

	Number of Shares or Principal Amount	Value
Oil Services — 0.18%
RPC Inc.	27,300	$	316,680
W-H Energy Services Inc. (a)	33,000		481,470
			798,150
Paper Products — 0.96%
Greif Brothers Corporation (Class A)	130,000		3,094,000
Schweitzer Mauduit International Inc.	43,000		1,053,500
			4,147,500
Pharmaceuticals — 0.00%
Twinlab Corporation (a)	200,000		20,000
Printing & Publishing — 5.43%
A.H. Belo Corporation (Class A)	145,000		3,091,400
Journal Register Company (a)	245,000		4,356,100
Lee Enterprises Inc.	75,000		2,514,000
McClatchy Company (Class A)	54,000		3,063,420
Penton Media Inc. (a)	290,000		197,200
Pulitzer Inc.	150,000		6,742,500
Thomas Nelson Inc. (a)	140,000		1,402,800
Topps Company Inc. (a)	237,500		2,066,250
			23,433,670
Property-Casualty Insurance — 0.42%
CNA Surety Corporation	230,000		1,805,500
Publishing — 0.34%
PRIMEDIA Inc. (a) (o)	500,000		1,030,000
Value Line Inc.	10,000		434,400
			1,464,400
Real Estate — 0.66%
Catellus Development Corporation (a)	80,000		1,588,000
Griffin Land & Nurseries Inc. (a)	63,000		912,870
Gyrodyne Company of America Inc. (a)	23,200		339,184
			2,840,054
Retail — 0.88%
Blockbuster Inc. (Class A)	15,000		183,750
Lillian Vernon Corporation (a)	153,000		627,300
Neiman Marcus Group Inc. (Class A) (a) (o)	52,000		1,580,280
Neiman Marcus Group Inc. (Class B) (a)	40,000		1,093,200
School Specialty Inc. (a)	10,000		199,800
Sports Authority Inc. (a) (o)	10,000		70,000
ValueVision International Inc. (Class A) (a)	3,000		44,940
			3,799,270

THE ENTERPRISE Group of Funds, Inc.

21

Enterprise Small Company Value Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Technology — 0.09%
Flir Systems Inc. (a)	1,500	$	73,200
J Net Enterprises Inc. (a)	415,000		311,250
			384,450
Telecommunications — 3.13%
AirGate PCS, Inc. (a) (o)	50,000		31,000
Atlantic Tele-Network, Inc.	12,000		186,000
ATX Communications Inc. (a) (o)	60,000		23,400
Broadwing Inc. (a)	630,000		2,217,600
Centurytel Inc. (o)	30,000		881,400
Citizens Communications Company (a) (o)	235,000		2,479,250
Commonwealth Telephone Enterprises Inc. (a)	50,000		1,792,000
Commonwealth Telephone Enterprises Inc. (Class B) (a)	8,000		294,000
Communications Systems Inc. (a)	92,500		737,225
D&E Communications Inc. (o)	140,000		1,170,400
McLeodUSA Inc. (Class A) (a) (o)	5,001		4,201
McLeodUSA Inc. (Escrow) (a)	60,000		—
Nextel Partners Inc. (Class A) (a) (o)	95,000		576,650
Panamsat Corporation (a)	95,000		1,390,800
Plantronics Inc. (a)	5,000		75,650
Rural Cellular Corporation (Class A) (a) (o)	85,000		72,250
Telephone and Data Systems Inc.	32,000		1,504,640
Triton PCS Holdings, Inc. (Class A) (a) (o)	22,000		86,460
			13,522,926
Transportation — 1.16%
GATX Corporation (o)	165,000		3,765,300
Marine Products Corporation	37,500		369,375
Oshkosh Truck Corporation	4,000		246,000
TransPro Inc. (a)	110,000		616,000
			4,996,675
Travel/Entertainment/Leisure — 0.16%
Bowlin Travel Centers Inc. (a)	60,000		87,600
Pinnacle Entertainment Inc. (a)	85,000		589,050
			676,650
Utilities — 2.61%
AGL Resources Inc.	45,000		1,093,500
Allegheny Energy Inc. (a)	10,000		75,600
CH Energy Group Inc.	61,000		2,844,430
Florida Public Utilities Company	22,666		336,590
Otter Tail Corporation	17,100		459,990
SJW Corporation	30,000		2,341,500
Southwest Gas Corporation	70,000		1,641,500
Westar Energy Inc.	250,000		2,475,000
			11,268,110
Waste Management — 1.07%
Allied Waste Industries Inc. (a)	250,000		2,500,000
Republic Services Inc. (a)	100,000		2,098,000
			4,598,000

	Number of Shares or Principal Amount	Value
Wireless Communications — 1.67%
Allen Telecom Inc. (a) (o)	215,000	$	2,036,050
AT&T Wireless Services Inc. (a)	70,000		395,500
Centennial Communications Corporation (Class A) (a) (o)	125,000		326,250
Dobson Communications Corporation (a)	60,734		134,222
Leap Wireless International Inc. (a) (o)	160,000		24,000
Nextel Communications Inc. (Class A) (a)	110,000		1,270,500
Price Communications Corporation (a)	118,000		1,631,940
United States Cellular Corporation (a) (o)	55,000		1,376,100
			7,194,562
Total Domestic Common Stocks
(Identified cost $463,361,707)			411,141,176
Foreign Stocks — 1.64%
Business Services — 0.07%
Professional Staff (ADR) (a)	155,000		310,000
Cable — 0.31%
Rogers Communications Inc. (Class B) (a)(o)	140,000		1,313,200
Consumer Services — 0.00%
Loewen Group Inc. (ADR) (a) (d)	120,000		—
Manufacturing — 0.40%
Denison International (ADR) (a)	109,000		1,744,000
Metals & Mining — 0.17%
Barrick Gold Corporation	48,000		739,680
Telecommunications — 0.41%
AO VimpelCom (ADR) (a)(o)	55,000		1,760,550
GST Telecommunications Inc. (a) (d)	45,000		—
			1,760,550
Wireless Communications — 0.28%
Rogers Wireless Communications (Class B) (a)	136,000		1,196,800
Total Foreign Stocks
(Identified cost $9,167,974)			7,064,230
Preferred Stocks — 1.40%
Broadcasting — 1.15%
Granite Broadcasting Corporation (a)	9,000		4,950,000
Telecommunications — 0.25%
Allen Telecom Inc. (a) (o)	15,000		1,110,000
Total Preferred Stocks
(Identified cost $6,742,106)			6,060,000

THE ENTERPRISE Group of Funds, Inc.

22

Enterprise Small Company Value Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Repurchase Agreement — 1.58%
State Street Bank & Trust Repurchase Agreement, 0.95% due 01/02/03, Proceeds $6,812,360 Collateral: GNMA $6,815,000, 7.00% due 04/20/32 Value $6,992,379	$	6,812,000	$	6,812,000
Total Repurchase Agreement
(Identified cost $6,812,000)				6,812,000

	Value
Total Investments
(Identified cost $486,083,787 )	$431,077,406
Other Assets Less Liabilities — 0.07%	310,576
Net Assets — 100%	$431,387,982

(a) Non-income producing security.

(d) Security is fair valued at December 31, 2002.

(f) Considered an affiliated company as the Fund owns more than 5% of the outstanding voting securities of such company.

(g) Restricted securities as of December 31, 2002 were as follows:

							Aggregate
Description	Date of Acquisition	Number of Units	Unit Cost		Fair Value per Unit		Cost		Value		Percent of Net Assets
Noel Group Units	04/13/99	15,000	$	0.49	$	—	$	7,320	$	—	0.00	%
Noel Group Liquidating Trust Units	10/08/98	15,000	$	0.81	$	0.28		12,187		4,200	0.00	%

(m) Illiquid security.

(o) Security, or portion thereof, out on loan at December 31, 2002.

(ADR) American Depository Receipt.

See notes to financial statements.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

23

Enterprise Capital Appreciation Fund

SUBADVISER’S COMMENTS

Marsico Capital Management, LLC

Denver, Colorado

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

Marsico Capital Management, LLC (“Marsico”), which manages approximately $14.7 billion for institutional clients and whose usual investment minimum is $100 million, became subadviser to the Fund on November 1, 1999.

Investment Objective

The objective of the Enterprise Capital Appreciation Fund is to seek maximum capital appreciation.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -17.48 percent. The Fund outperformed its benchmark, the S&P 500 Index, which returned -22.11 percent. The Fund outperformed its peer group, the Lipper Large-Cap Growth Fund Index, which returned -28.11 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Enterprise Capital Appreciation Fund A-Shares	1-Year	5-Year	10-Year
With Sales Charge	-21.41%	-0.53%	5.76%
Without Sales Charge	-17.48%	0.45%	6.28%
S&P 500 Index*	-22.11%	-0.59%	9.34%
Lipper Large-Cap Growth Fund Index*	-28.11%	-4.16%	6.30%

Enterprise Capital Appreciation Fund C-Shares	1-Year	5-Year	05/01/97-12/31/02
With Sales Charge	-19.54%	-0.26%	3.39%
Without Sales Charge	-17.90%	-0.05%	3.57%
S&P 500 Index*	-22.11%	-0.59%	3.11%
Lipper Large-Cap Growth Fund Index*	-28.11%	-4.16%	-0.29%

Enterprise Capital Appreciation Fund B-Shares	1-Year	5-Year	05/01/95-12/31/02
With Sales Charge	-22.04%	-0.35%	6.67%
Without Sales Charge	-17.94%	-0.11%	6.67%
S&P 500 Index*	-22.11%	-0.59%	9.02%
Lipper Large-Cap Growth Fund Index*	-28.11%	-4.16%	5.65%

Enterprise Capital Appreciation Fund Y-Shares	1-Year	05/31/98-12/31/02
Average Annual Return	-17.09%	-1.32%
S&P 500 Index*	-22.11%	-3.28%
Lipper Large-Cap Growth Fund Index*	-28.11%	-7.02%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.

*The S&P 500 Index is an unmanaged broad-based index that includes the common stock of 500 companies that tend to be important leaders in important industries within the U.S. economy. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The S&P 500 Index replaces the S&P 500 Barra/Growth Index as the broad-based benchmark for the Fund as it more appropriately reflects the Fund's broad-based market. During 2002, an investment in the above hypothetical account for the Enterprise Capital Appreciation Fund A-Shares decreased by $3,709 compared to a decrease of $7,169 in the S&P 500 Barra/Growth Index and a decrease $6,933 in the S&P 500 Index. The Lipper Large-Cap Growth Fund Index is an unmanaged index of the 30 largest funds, based on total year-end net asset value, in the Lipper Large-Cap Growth Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest in an index.

THE ENTERPRISE Group of Funds, Inc.

24

Enterprise Capital Appreciation Fund — (Continued)

SUBADVISER’S COMMENTS

While the Fund did succeed in outpacing its benchmark indices by a considerable margin over the course of the entire year, there were some “blemishes” performance-wise. These included generally maintaining an under-weighted investment posture in certain industries including banking, household/personal products, energy, and materials. Specific individual positions in sectors such as health care, namely Baxter International Inc. and Quest Diagnostics Inc., and financial services companies like Citigroup and Capital One Financial Corporation, also detracted from the Fund’s performance.

The Fund’s investments in the aerospace/defense industry, which were initiated well prior to the September 11, 2001 terrorist attacks, performed well for the year as a whole; specifically Lockheed-Martin Corporation, General Dynamics Corporation, and L-3 Communications Holdings, Inc. The Fund’s performance benefited from the information technology sector; specifically QUALCOMM Inc., Dell Computer Corporation, and Cisco Systems Inc. In aggregate, investment results for the Fund were helped for the year by positions in equipment and services companies such as United Health Group Inc. and Zimmer Holdings.

The Fund’s financial services position in SLM Corporation, formerly known as Student Loan Marketing Association, was also a significant positive contributor to performance for the year, while the Fund generally maintained a significant under-weighted investment posture in the telecommunications services sector, as compared to the S&P 500 Index. This strategy positively impacted investment performance for the year as a whole. The Fund’s holdings in the automobile industry, such as Porsche and BMW, positively affected the Fund’s performance for 2002.

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.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

25

Enterprise Capital Appreciation Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Domestic Common Stocks — 90.47%
Aerospace — 4.29%
General Dynamics Corporation	32,009	$	2,540,554
Lockheed Martin Corporation	72,760		4,201,890
			6,742,444
Banking — 3.19%
J. P. Morgan Chase & Company	111,838		2,684,112
Wells Fargo & Company	49,706		2,329,720
			5,013,832
Biotechnology — 3.43%
Amgen Inc. (a)	111,626		5,396,001
Broadcasting — 4.58%
Clear Channel Communications Inc. (a)	73,132		2,727,092
Viacom Inc. (Class B) (a)	109,858		4,477,812
			7,204,904
Building & Construction — 6.13%
D.R. Horton Inc.	78,006		1,353,404
Jacobs Engineering Group Inc.	8,842		314,775
Lennar Corporation	61,062		3,150,800
Lowe’s Companies Inc. (o)	128,580		4,821,750
			9,640,729
Computer Hardware — 4.16%
Cisco Systems Inc. (a)	277,158		3,630,770
Dell Computer Corporation (a)	108,848		2,910,595
			6,541,365
Computer Software — 4.82%
Electronic Arts Inc. (a)	52,766		2,626,164
Microsoft Corporation (a)	95,890		4,957,513
			7,583,677
Consumer Durables — 0.52%
Harley-Davidson Inc.	17,596		812,935
Consumer Products — 4.52%
Colgate-Palmolive Company	45,986		2,411,046
Procter & Gamble Company	54,698		4,700,746
			7,111,792
Finance — 9.38%
Lehman Brothers Holdings Inc.	62,337		3,321,939
SLM Corporation	110,064		11,431,247
			14,753,186
Food, Beverages & Tobacco — 3.23%
Anheuser-Busch Companies, Inc.	38,360		1,856,624
PepsiCo Inc.	76,202		3,217,248
			5,073,872

	Number of Shares or Principal Amount	Value
Health Care — 2.40%
HCA Inc.	91,112	$	3,781,148
Hotels & Restaurants — 4.01%
Four Season Hotels Inc. (o)	123,438		3,487,123
MGM Mirage Inc. (a)	71,112		2,344,563
Wynn Resorts Ltd. (a) (o)	36,000		471,960
			6,303,646
Medical Instruments — 2.16%
Zimmer Holdings Inc. (a)	81,958		3,402,896
Medical Services — 10.65%
Quest Diagnostics Inc. (a)	97,544		5,550,254
UnitedHealth Group Inc.	134,030		11,191,505
			16,741,759
Misc. Financial Services — 3.55%
Citigroup Inc.	58,080		2,043,835
Fannie Mae	55,070		3,542,653
			5,586,488
Pharmaceuticals — 3.35%
Forest Laboratories Inc. (a)	5,271		517,718
IDEC Pharmaceuticals Corporation (a)	56,096		1,860,704
Johnson & Johnson	53,666		2,882,401
			5,260,823
Real Estate — 1.13%
M.D.C. Holdings Inc.	46,456		1,777,407
Retail — 8.08%
Bed Bath & Beyond Inc. (a)	79,678		2,751,281
Tiffany & Company	215,221		5,145,934
Wal-Mart Stores Inc.	95,111		4,804,057
			12,701,272
Telecommunications — 2.57%
QUALCOMM Inc. (a)	111,050		4,041,110
Transportation — 2.13%
FedEx Corporation	61,845		3,353,236
Wireless Communications — 2.19%
Nextel Communications Inc. (Class A) (a)	297,504		3,436,171
Total Domestic Common Stocks
(Identified cost $140,758,391)			142,260,693

THE ENTERPRISE Group of Funds, Inc.

26

Enterprise Capital Appreciation Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Foreign Stocks — 7.15%
Automotive — 2.97%
Bayerische Motoren Werke (a)	153,696	$	4,666,466
Food, Beverages & Tobacco — 0.64%
Heineken (a)	25,656		1,001,980
Transportation — 1.90%
Ryanair Holdings (ADR) (a) (o)	76,542		2,997,385
Wireless Communications — 1.64%
Nokia Corporation (Class A) (ADR)	166,397		2,579,153
Total Foreign Stocks
(Identified cost $11,103,018)			11,244,984
Foreign Preferred Stock — 1.65%
Automotive — 1.65%
Porsche (a)	6,222		2,586,738
Total Foreign Preferred Stock
(Identified cost $2,249,811)			2,586,738

	Number of Shares or Principal Amount		Value
Short-Term Investment — 0.25%
Federal Home Loan Bank Discount Note, 0.75% due 01/02/03 (s)	$	400,000	$	399,992
Total Short-Term Investment
(Identified cost $399,992)				399,992
Total Investments
(Identified cost $154,511,212)			$	156,492,407
Other Assets Less Liabilities — 0.48%				752,923
Net Assets — 100%			$	157,245,330

(a) Non-income producing security.

(o) Security, or portion thereof, out on loan at December 31, 2002.

(s) The rate shown is the current effective yield.

(ADR) American Depository Receipt.

See notes to financial statements.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

27

Enterprise Deep Value Fund

SUBADVISER’S COMMENTS

Wellington Management Company, LLP

Boston, Massachusetts

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

Wellington Management Company, LLP (“Wellington”), which manages approximately $303 billion for institutional clients and whose usual investment minimum is $20 million for this investment objective, became subadviser to the Fund on May 31, 2001.

Investment Objective

The objective of the Enterprise Deep Value Fund is to seek total return through capital appreciation with income as a secondary consideration.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -22.97 percent. The Fund underperformed its benchmark, the Russell 1000 Value Index, which returned -15.53 percent. The Fund underperformed its peer group, the Lipper Large-Cap Value Fund Index, which returned -19.68 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year	05/31/01-12/31/02
With Sales Charge	-26.67%	-17.96%
Without Sales Charge	-22.97%	-15.39%
Russell 1000 Value Index*	-15.53%	-13.83%
Lipper Large-Cap Value Fund Index*	-19.68%	-17.18%

Class C	1-Year	05/31/01-12/31/02
With Sales Charge	-24.90%	-16.36%
Without Sales Charge	-23.38%	-15.83%
Russell 1000 Value Index*	-15.53%	-13.83%
Lipper Large-Cap Value Fund Index*	-19.68%	-17.18%

Class B	1-Year	05/31/01-12/31/02
With Sales Charge	-27.17%	-17.94%
Without Sales Charge	-23.35%	-15.81%
Russell 1000 Value Index*	-15.53%	-13.83%
Lipper Large-Cap Value Fund Index*	-19.68%	-17.18%

Class Y	1-Year	05/31/01-12/31/02
Average Annual Return	-22.61%	-15.04%
Russell 1000 Value Index*	-15.53%	-13.83%
Lipper Large-Cap Value Fund Index*	-19.68%	-17.18%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

*The Russell 1000 Value Index is an unmanaged index of the stocks included in the Russell 2000 Index with lower price-to-book ratios and lower forecasted growth values.

It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper Large-Cap Value Fund Index is an unmanaged index of the 30 largest funds, based on total year-end net assets value, in the Lipper Large-Cap Value Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

28

Enterprise Deep Value Fund — (Continued)

SUBADVISER’S COMMENTS

For calendar year 2002, the Fund significantly underperformed its benchmark, the Russell 1000 Value Index. For the twelve-month period, holdings in the utilities sector were the largest positive contributor to performance, while holdings in the consumer discretionary sector detracted the most from relative performance. The Fund benefited from its utilities holdings in the Southern Company, SCANA Corporation, Exelon Corporation, and FPL Group. The Fund continues to hold a number of these names; in particular, the U.S. integrated utility, Exelon. This company continues to report improving above consensus operating earnings as it begins to benefit from the strong internal cost cutting programs that were put in place in 2001 when the outlook for wholesale pricing was sharply reduced. The Fund remains over-weight in Exelon due to its strong management, large nuclear power generation fleet, and stable retail base.

In the consumer discretionary sector, the Fund’s holding in Adelphia Communications had a large negative impact on the Fund. This holding was eliminated during the second quarter of 2002. Other holdings in this sector that detracted from the Fund’s performance include athletic shoe and apparel maker, Nike Inc. and retailer, Dollar General Corporation. Despite the disappointing performance of Dollar General Corporation during 2002, Wellington plans to continue to hold the stock, as they believe that the retailer will benefit from its niche group of consumers in mainly rural markets. In particular, Wellington believes that revenue growth should be driven by new store openings, which in turn will drive margin expansion because of the inherent fixed cost leverage.

Throughout 2002, the investment environment was characterized by growth in economic activity and recovery in corporate earnings, which are the normal ingredients of a stock market expansion. However, stock prices and business news were not driven by traditional factors, such as economic activity and business expansion, but by a continued loss of confidence and persistent risk aversion.

Investments in small-capitalization and mid-capitalization stocks are generally riskier than large-capitalization stocks due to greater earnings and price fluctuations.

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.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

29

Enterprise Deep Value Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Domestic Common Stocks — 96.40%
Automotive — 0.88%
AutoNation Inc. (a) (o)	10,600	$	133,136
Banking — 10.43%
Bank of America Corporation	6,500		452,205
Comerica Inc.	3,300		142,692
National City Corporation	19,100		521,812
PNC Financial Services Group	600		25,140
Wells Fargo & Company	9,400		440,578
			1,582,427
Business Services — 0.32%
BearingPoint Inc. (a)	7,000		48,300
Cable — 3.24%
Comcast Corporation (Class A) (a) (o)	21,800		492,462
Chemicals — 4.76%
Ashland Inc. (o)	5,200		148,356
Dow Chemical Company	6,200		184,140
Du Pont (E. I.) de Nemours & Company	9,200		390,080
			722,576
Computer Hardware — 1.23%
Hewlett-Packard Company	10,752		186,655
Consumer Products — 2.35%
Kimberly-Clark Corporation	3,200		151,904
Nike, Inc. (Class B)	4,600		204,562
			356,466
Crude & Petroleum — 7.30%
ChevronTexaco Corporation (o)	5,100		339,048
ExxonMobil Corporation	22,000		768,680
			1,107,728
Electrical Equipment — 1.72%
Dominion Resources Inc. (o)	2,150		118,035
Emerson Electric Company	2,800		142,380
			260,415
Electronics — 1.54%
Agere Systems Inc. (Class A) (a)	23,200		33,408
Micron Technology Inc. (a) (o)	13,900		135,386
Rockwell International Corporation	3,100		64,201
			232,995
Energy — 2.95%
Exelon Corporation	5,200		274,404
Progress Energy Inc.	4,000		173,400
			447,804
Finance — 0.13%
Goldman Sachs Group Inc.	300		20,430

	Number of Shares or Principal Amount	Value
Food, Beverages & Tobacco — 3.28%
Kellogg Company	7,400	$	253,598
PepsiCo Inc.	5,800		244,876
			498,474
Health Care — 1.41%
C.R. Bard Inc.	3,700		214,600
Hotels & Restaurants — 1.11%
McDonald’s Corporation	10,500		168,840
Insurance — 2.85%
ACE Ltd.	6,900		202,446
Cigna Corporation	3,800		156,256
Marsh & McLennan Companies Inc.	1,600		73,936
			432,638
Life Insurance — 0.19%
Stancorp Financial Group Inc.	600		29,310
Machinery — 1.95%
Caterpillar Inc. (o)	6,200		283,464
Illinois Tool Works Inc.	200		12,972
			296,436
Manufacturing — 2.44%
Stanley Works	10,700		370,006
Media — 1.25%
AOL Time Warner Inc. (a) (o)	14,500		189,950
Medical Instruments — 1.07%
Beckman Coulter Inc. (o)	5,500		162,360
Metals & Mining — 2.41%
Alcoa Inc.	6,800		154,904
Nucor Corporation	5,100		210,630
			365,534
Misc. Financial Services — 6.52%
Citigroup Inc.	19,000		668,610
Fannie Mae	5,000		321,650
			990,260
Multi-Line Insurance — 1.56%
Hartford Financial Services Group Inc.	5,200		236,236
Oil Services — 1.96%
GlobalSantaFe Corporation (o)	12,200		296,704
Pharmaceuticals — 3.45%
Pharmacia Corporation	8,800		367,840
Schering-Plough Corporation	7,000		155,400
			523,240

THE ENTERPRISE Group of Funds, Inc.

30

Enterprise Deep Value Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Property-Casualty Insurance — 2.87%
Chubb Corporation	1,600	$	83,520
St. Paul Companies Inc.	9,500		323,475
Travelers Property Casualty Corporation (a) (o)	1,965		28,787
			435,782
Raw Materials — 1.69%
Weyerhaeuser Company (o)	5,200		255,892
Real Estate — 0.99%
Archstone Smith Trust	6,400		150,656
Retail — 2.86%
CVS Corporation	7,500		187,275
Dollar General Corporation	14,600		174,470
Family Dollar Stores Inc.	2,300		71,783
			433,528
Savings and Loan — 3.34%
Washington Mutual Inc. (o)	14,700		507,591
Semiconductors — 3.46%
Applied Materials Inc. (a)	5,100		66,453
Intel Corporation	18,500		288,045
Teradyne Inc. (a) (o)	13,100		170,431
			524,929
Technology — 0.15%
Monsanto Company	1,211		23,312
Telecommunications — 8.28%
AT&T Corporation	3,520		91,907
BellSouth Corporation	12,600		325,962
SBC Communications Inc.	21,200		574,732
Verizon Communications Inc.	6,800		263,500
			1,256,101
Transportation — 1.00%
Southwest Airlines Company (o)	10,900		151,510
Utilities — 1.45%
National Fuel Gas Company (o)	5,100		105,723
SCANA Corporation	3,700		114,552
			220,275

	Number of Shares or Principal Amount		Value
Waste Management — 1.96%
Republic Services Inc. (a)		14,200	$	297,916
Wireless Communications — 0.05%
AT&T Wireless Services Inc. (a)		1,265		7,147
Total Domestic Common Stocks
(Identified cost $16,664,591)				14,630,621
Foreign Stock — 1.38%
Oil Services — 1.38%
Shell Transport & Trading Company (ADR) (o)		5,400		210,168
Total Foreign Stock
(Identified cost $236,071)				210,168
Repurchase Agreement — 1.73%
State Street Bank & Trust Repurchase Agreement, 0.95% due 01/02/03 Proceeds $262,014 Collateral: GNMA $265,000, 7.00% due 04/20/32, Value $271,897	$	262,000		262,000
Total Repurchase Agreement
(Identified cost $262,000)				262,000
Total Investments
(Identified cost $17,162,662)			$	15,102,789
Other Assets Less Liabilities — 0.49%				74,214
Net Assets — 100%			$	15,177,003

(a) Non-income producing security.

(o) Security, or portion thereof, out on loan at December 31, 2002.

(ADR) American Depository Receipt.

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

31

Enterprise Equity Fund

SUBADVISER’S COMMENTS

TCW Investment Management Company

Los Angeles, California

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

TCW Investment Management Company (“TCW”), a wholly owned subsidiary of TCW Group, Inc., became subadviser to the Enterprise Equity Fund on November 1, 1999. TCW manages approximately $80 billion for institutional clients and its normal investment minimum is $100 million for this investment objective.

Investment Objective

The objective of the Enterprise Equity Fund is long-term capital appreciation.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -29.82 percent. The Fund underperformed its benchmark, the S&P 500 Index, which returned -22.11 percent. The Fund underperformed its peer group, the Lipper Large-Cap Growth Fund Index, which returned -28.11 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year	5-Year	05/01/97-12/31/02
With Sales Charge	-33.10%	-7.92%	-3.79%
Without Sales Charge	-29.82%	-7.01%	-2.96%
S&P 500 Index*	-22.11%	-0.59%	3.11%
Lipper Large-Cap Growth Fund Index*	-28.11%	-4.16%	-0.29%

Class C	1-Year	5-Year	05/01/97-12/31/02
With Sales Charge	-31.57%	-7.65%	-3.60%
Without Sales Charge	-30.24%	-7.46%	-3.43%
S&P 500 Index*	-22.11%	-0.59%	3.11%
Lipper Large-Cap Growth Fund Index*	-28.11%	-4.16%	-0.29%

Class B	1-Year	5-Year	05/01/97-12/31/02
With Sales Charge	-33.61%	-7.80%	-3.60%
Without Sales Charge	-30.11%	-7.46%	-3.44%
S&P 500 Index*	-22.11%	-0.59%	3.11%
Lipper Large-Cap Growth Fund Index*	-28.11%	-4.16%	-0.29%

Class Y	1-Year	10/31/98-12/31/02
Average Annual Return	-29.44%	-9.09%
S&P 500 Index*	-22.11%	-3.91%
Lipper Large-Cap Growth Fund Index*	-28.11%	-8.11%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

*The S&P 500 Index is an unmanaged broad-based index that includes the common stock of 500 companies that tend to be important leaders in important industries within the U.S. economy. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper Large-Cap Growth Fund Index is an unmanaged index of the 30 largest funds, based on total year-end net asset value, in the Lipper Large-Cap Growth Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

32

Enterprise Equity Fund — (Continued)

SUBADVISER’S COMMENTS

The year 2002 ends the third year in a row of negative returns for the equity markets. The normal pattern has been to decline in line with the market but to outperform in rising markets. The Fund did outperform in the two rising quarters, the first and fourth quarters, but suffered significant declines in the second and third quarters. For the year, value stocks outperformed growth stocks, but when mutual fund redemptions were heavy and short sales activity was rampant, no particular style was safe.

The scale of impropriety seems unmatched. Often the news seemed stranger than fiction. With all of these events occurring, it is understandable why investor confidence has been shaken. But it is also clear that 2002 was more of a stock market event than an economic event. While valuations were rich heading into this bear market, never has there been a contraction of this magnitude where the structural backdrop for the market is this good. Inflation is low. The past recession was by all definitions a mild one. Through much of the year investors sought safe harbors. These tend to be mature businesses that have poor growth prospects but trade at low valuations. For much of the year bonds have dramatically outperformed stocks. The market is now in the unusual circumstance of having government bond yields at their lowest level in forty years. Gold, often seen as an inflation hedge, is at a five and a half year high and the U.S. dollar is at its lowest level in three years.

For some of the Fund’s holdings, the past few years have provided a challenging test. For the information technology sector this has been the worst business environment ever. The Fund’s health care holdings witnessed a more restrictive regulatory setting. The airline industry has seen a significant contraction after the September 11, 2001 attacks. Holdings related to individuals’ need to provide for their retirement have been impacted by this historic bear market. Nevertheless, TCW believes that the companies the Fund holds, in the face of tremendous adversity, have performed admirably. They have improved their profitability, augmented their market share and positioned themselves to do that much better in the future. All remain cash flow positive with high quality balance sheets.

Through most of the year, TCW made very few outright changes to the Fund’s holdings. Several stocks had significant price declines but it was notable that, in most cases, their competitor’s declines were even greater. As TCW saw what they believed was mispricing during the year, TCW made adjustments to the size of the Fund’s holdings. This scaling back of the relatively expensive and redeploying into the relatively cheap holdings was additive to the Fund’s total returns. In the fourth quarter, the Fund added some new names to its holdings. While TCW has monitored these stocks for several years, it was only recently that they felt the business model strength and valuation warranted inclusion into the Fund’s holdings.

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.

33

Enterprise Equity Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Domestic Common Stocks — 99.25%
Biotechnology — 8.90%
Amgen Inc. (a)	80,600	$	3,896,204
Genentech Inc. (a)	120,350		3,990,806
			7,887,010
Business Services — 3.13%
Paychex Inc.	99,450		2,774,655
Computer Hardware — 7.59%
Cisco Systems Inc. (a)	205,100		2,686,810
Dell Computer Corporation (a)	151,200		4,043,088
			6,729,898
Computer Services — 3.96%
Juniper Networks Inc. (a) (o)	32,885		223,618
Pixar Inc. (a) (o)	62,100		3,290,679
			3,514,297
Computer Software — 7.35%
Microsoft Corporation (a)	85,400		4,415,180
Siebel Systems Inc. (a)	280,340		2,096,943
			6,512,123
Electrical Equipment — 2.31%
General Electric Company	84,000		2,045,400
Insurance — 14.61%
AFLAC Inc.	101,700		3,063,204
Progressive Corporation	199,180		9,885,303
			12,948,507
Medical Services — 3.07%
Biogen Inc. (a)	68,000		2,724,080
Misc. Financial Services — 3.43%
Charles Schwab Corporation	280,600		3,044,510
Multi-Line Insurance — 2.85%
American International Group Inc.	43,650		2,525,153
Pharmaceuticals — 7.32%
Eli Lilly & Company	58,100		3,689,350
MedImmune Inc. (a)	20,915		568,261
Pfizer Inc.	73,150		2,236,195
			6,493,806
Retail — 7.21%
Amazon.com Inc. (a)	85,600		1,616,984
eBay Inc. (a)	27,900		1,892,178
Wal-Mart Stores Inc.	57,135		2,885,889
			6,395,051

	Number of Shares or Principal Amount		Value
Semiconductors — 15.24%
Applied Materials Inc. (a)		260,070	$	3,388,712
Intel Corporation		157,300		2,449,161
Maxim Integrated Products Inc.		142,500		4,708,200
Xilinx Inc. (a)		143,900		2,964,340
				13,510,413
Technology — 4.44%
Network Appliance Inc. (a) (o)		394,000		3,940,000
Telecommunications — 4.62%
QUALCOMM Inc. (a)		112,600		4,097,514
Transportation — 3.22%
Southwest Airlines Company		205,400		2,855,060
Total Domestic Common Stocks
(Identified cost $149,945,749)				87,997,477
Repurchase Agreement — 1.52%
State Street Bank & Trust Repurchase Agreement, 0.95% due 01/02/03 , Proceeds $1,349,071 Collateral: GNMA $1,350,000, 7.00% due 04/20/32 Value $1,385,138	$	1,349,000		1,349,000
Total Repurchase Agreement
(Identified cost $1,349,000)				1,349,000
Total Investments
(Identified cost $151,294,749)			$	89,346,477
Other Assets Less Liabilities — (0.77)%				(686,591)
Net Assets — 100%			$	88,659,886

(a) Non-income producing security.

(o) Security, or portion thereof, out on loan at December 31, 2002.

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

34

Enterprise Equity Income Fund

SUBADVISER’S COMMENTS

Boston Advisors, Inc.

New York, New York

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

Boston Advisors, Inc. (“Boston Advisors”) has taken over the operations of 1740 Advisers, Inc., which had been subadviser to the Enterprise Equity Income Fund since its inception. Boston Advisors is a member of The MONY Group Inc. (NYSE: MNY) and manages approximately $4 billion for institutional clients. Its normal investment minimum is $5 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.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -15.23 percent. The Fund outperformed its benchmark, the S&P 500/Barra Value Index, which returned -20.85 percent. The Fund outperformed its peer group, the Lipper Equity Income Fund Index, which returned -16.43 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year	5-Year	10-Year
With Sales Charge	-19.25%	-2.21%	7.35%
Without Sales Charge	-15.23%	-1.26%	7.88%
S&P 500/Barra Value Index*	-20.85%	-0.85%	9.39%
Lipper Equity Income Fund Index*	-16.43%	-0.17%	8.19%

Class C	1-Year	5-Year	05/01/97-12/31/02
With Sales Charge	-17.35%	-1.99%	1.19%
Without Sales Charge	-15.69%	-1.79%	1.37%
S&P 500/Barra Value Index*	-20.85%	-0.85%	2.96%
Lipper Equity Income Fund Index*	-16.43%	-0.17%	3.33%

Class B	1-Year	5-Year	05/01/95-12/31/02
With Sales Charge	-19.83%	-2.10%	6.70%
Without Sales Charge	-15.67%	-1.80%	6.70%
S&P 500/Barra Value Index*	-20.85%	-0.85%	8.26%
Lipper Equity Income Fund Index*	-16.43%	-0.17%	7.60%

Class Y	1-Year	01/31/98-12/31/02
Average Annual Return	-14.85%	-0.99%
S&P 500/Barra Value Index*	-20.85%	-0.61%
Lipper Equity Income Fund Index*	-16.43%	-0.17%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

*S&P 500/Barra Value Index is an unmanaged capitalization weighted index comprised of stocks of the S&P 500 with low price-to-book ratios relative to the S&P 500 as a whole. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper Equity Income Fund Index is an unmanaged index of the 30 largest funds, based on total year-end net asset value, in the Lipper Equity Income Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

35

Enterprise Equity Income Fund — (Continued)

SUBADVISER’S COMMENTS

The Fund benefited from significant over-weighting in early economic cycle related stocks such as aerospace, industrial conglomerates, machinery, railroads, material and energy. Particular winners were Eaton Corporation, Northrop Grumman Corporation, 3M, Textron and Union Pacific Corporation. The Fund had an under-weighting in the overall consumer related and financial area, but had important holdings in Avon Products, Inc., Procter & Gamble, Anheuser- Busch Companies, Bank of America, The Allstate Corporation and Wells Fargo & Company. Given the economic, political and geopolitical environment, stock selection was even more important than usual in the investment equation.

The stock market environment was very difficult in 2002, with significant economic and earnings uncertainties, many corporate related issues such as disclosure, accounting irregularities, debt problems and management malfeasance, overvaluation of stock and finally, but certainly not least, the overhang of a possible war with Iraq and further acts of terrorism. While many of these problems still persist, Boston Advisors believes that the market impact lessened as the year progressed. While economic growth was uneven on a quarter-to-quarter basis, Boston Advisors believed that many elements were present — positive monetary and fiscal policies, and strong consumer spending, for example —that indicated that the economy would be a driver of earnings growth and an improving stock market.

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.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

36

Enterprise Equity Income Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Domestic Common Stocks — 92.79%
Aerospace — 4.48%
Honeywell International Inc.	40,000	$	960,000
Northrop Grumman Corporation (o)	16,001		1,552,049
Raytheon Company	25,000		768,750
United Technologies Corporation	18,000		1,114,920
			4,395,719
Automotive — 4.55%
Cummins Inc. (o)	45,000		1,265,850
Ford Motor Company	35,000		325,500
General Motors Corporation (o)	20,000		737,200
Genuine Parts Company	12,000		369,600
Johnson Controls Inc.	22,000		1,763,740
			4,461,890
Banking — 6.54%
Bank of America Corporation	23,000		1,600,110
Bank One Corporation	30,000		1,096,500
J. P. Morgan Chase & Company	20,000		480,000
KeyCorp	40,000		1,005,600
U.S. Bancorp	50,000		1,061,000
Wells Fargo & Company	25,000		1,171,750
			6,414,960
Chemicals — 2.36%
Dow Chemical Company	35,000		1,039,500
Du Pont (E. I.) de Nemours & Company	30,000		1,272,000
			2,311,500
Computer Hardware — 0.44%
Hewlett-Packard Company	25,000		434,000
Conglomerates — 1.53%
Textron Inc.	35,000		1,504,650
Consumer Non-Durables — 0.93%
Avon Products Inc.	17,000		915,790
Consumer Products — 3.49%
Eastman Kodak Company	13,000		455,520
Gillette Company	25,000		759,000
Kimberly-Clark Corporation	10,000		474,700
Procter & Gamble Company	8,000		687,520
Whirlpool Corporation	20,000		1,044,400
			3,421,140
Crude & Petroleum — 2.59%
Burlington Resources Inc.	16,000		682,400
ChevronTexaco Corporation	7,000		465,360
ExxonMobil Corporation	40,000		1,397,600
			2,545,360

	Number of Shares or Principal Amount	Value
Electrical Equipment — 4.72%
Dominion Resources Inc.	30,000	$	1,647,000
Emerson Electric Company	30,000		1,525,500
General Electric Company	60,000		1,461,000
			4,633,500
Energy — 3.33%
Duke Energy Corporation	45,000		879,300
Entergy Corporation	35,000		1,595,650
Exelon Corporation	15,000		791,550
			3,266,500
Food, Beverages & Tobacco — 1.90%
Anheuser-Busch Companies, Inc.	10,000		484,000
Coca-Cola Company	20,000		876,400
PepsiCo Inc.	12,000		506,640
			1,867,040
Machinery — 4.76%
Caterpillar Inc.	35,000		1,600,200
Deere & Company	35,000		1,604,750
Pitney Bowes Inc.	45,000		1,469,700
			4,674,650
Manufacturing — 6.26%
3M Company	20,000		2,466,000
Eaton Corporation	25,000		1,952,750
Ingersoll-Rand Company Ltd.	40,000		1,722,400
			6,141,150
Metals & Mining — 1.81%
Alcoa Inc.	40,000		911,200
Nucor Corporation	21,000		867,300
			1,778,500
Misc. Financial Services — 4.37%
Citigroup Inc.	40,000		1,407,600
Fannie Mae	23,000		1,479,590
Morgan Stanley Dean Witter & Company	35,000		1,397,200
			4,284,390
Multi-Line Insurance — 2.77%
Lincoln National Corporation	35,000		1,105,300
Marsh & McLennan Companies Inc.	35,000		1,617,350
			2,722,650
Oil Services — 6.49%
Baker Hughes Inc.	25,000		804,750
ConocoPhillips	10,000		483,900
Diamond Offshore Drilling Inc.	30,000		655,500
El Paso Corporation	30,000		208,800

THE ENTERPRISE Group of Funds, Inc.

37

Enterprise Equity Income Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Kerr-McGee Corporation	15,000	$	664,500
KeySpan Corporation	40,000		1,409,600
Murphy Oil Corporation	20,000		857,000
Schlumberger Ltd.	12,000		505,080
Tidewater Inc.	25,000		777,500
			6,366,630
Paper & Forest Products — 1.63%
Georgia-Pacific Group	45,000		727,200
International Paper Company	25,000		874,250
			1,601,450
Paper Products — 1.01%
MeadWestvaco Corporation	40,000		988,400
Pharmaceuticals — 11.11%
Abbott Laboratories	25,000		1,000,000
Baxter International Inc.	35,000		980,000
Bristol-Myers Squibb Company	30,000		694,500
Eli Lilly & Company	18,000		1,143,000
Johnson & Johnson	10,000		537,100
Merck & Company Inc.	38,000		2,151,180
Pfizer Inc.	65,000		1,987,050
Pharmacia Corporation	15,000		627,000
Schering-Plough Corporation	30,000		666,000
Wyeth	30,000		1,122,000
			10,907,830
Printing & Publishing — 1.85%
McGraw-Hill Companies Inc.	30,000		1,813,200
Property-Casualty Insurance — 3.57%
Allstate Corporation	30,000		1,109,700
Chubb Corporation	23,000		1,200,600
St. Paul Companies Inc.	35,000		1,191,750
			3,502,050
Raw Materials — 1.25%
Weyerhaeuser Company	25,000		1,230,250
Real Estate — 1.00%
Equity Residential Properties Trust	40,000		983,200
Telecommunications — 4.88%
BellSouth Corporation	55,000		1,422,850
SBC Communications Inc.	60,000		1,626,600
Verizon Communications Inc.	45,000		1,743,750
			4,793,200

	Number of Shares or Principal Amount		Value
Transportation — 3.17%
Canadian National Railway Company		15,000	$	623,400
CSX Corporation		35,000		990,850
Union Pacific Corporation		25,000		1,496,750
				3,111,000
Total Domestic Common Stocks
(Identified cost $99,352,903)				91,070,599
Commercial Paper — 6.72%
American Electric Power 2.18% due 01/13/03	$	6,600,000		6,595,204
Total Commercial Paper
(Identified cost $6,595,204)				6,595,204
Repurchase Agreement — 0.43%
State Street Bank & Trust Repurchase Agreement, 0.95% due 01/02/03 Proceeds $423,022 Collateral: GNMA $425,000, 7.00% due 04/20/32 Value $436,062		423,000		423,000
Total Repurchase Agreement
(Identified cost $423,000)				423,000
Total Investments
(Identified cost $106,371,107)			$	98,088,803
Other Assets Less Liabilities — 0.06%				57,629
Net Assets — 100%			$	98,146,432

(o) Security, or portion thereof, out on loan at December 31, 2002.

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

38

Enterprise Growth Fund

SUBADVISER’S COMMENTS

Montag & Caldwell, Inc.

Atlanta, Georgia

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

Montag & Caldwell, Inc. (“Montag & Caldwell”) has served as subadviser to the Enterprise Growth Fund since the Fund was organized in 1968. Montag & Caldwell manages approximately $23.5 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.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -23.28 percent. The Fund underperformed its benchmark, the S&P 500 Index, which returned -22.11 percent. By comparison, the Fund outperformed its peer group, the Lipper Large-Cap Growth Fund Index, which returned -28.11 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year	5-Year	10-Year
With Sales Charge	-26.94%	-1.40%	9.57%
Without Sales Charge	-23.28%	-0.44%	10.11%
S&P 500 Index*	-22.11%	-0.59%	9.34%
Lipper Large-Cap Growth Fund Index*	-28.11%	-4.16%	6.30%

Class C	1-Year	5-Year	05/01/97-12/31/02
With Sales Charge	-25.18%	-1.18%	2.48%
Without Sales Charge	-23.68%	-0.99%	2.65%
S&P 500 Index*	-22.11%	-0.59%	3.11%
Lipper Large-Cap Growth Fund Index*	-28.11%	-4.16%	-0.29%

Class B	1-Year	5-Year	05/01/95-12/31/02
With Sales Charge	-27.52%	-1.31%	9.81%
Without Sales Charge	-23.71%	-0.98%	9.81%
S&P 500 Index*	-22.11%	-0.59%	9.02%
Lipper Large-Cap Growth Fund Index*	-28.11%	-4.16%	5.65%

Class Y	1-Year	5-Year	08/31/96-12/31/02
Average Annual Return	-22.97%	0.08%	7.28%
S&P 500 Index*	-22.11%	-0.59%	6.40%
Lipper Large-Cap Growth Fund Index*	-28.11%	-4.16%	2.37%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

*The S&P 500 Index is an unmanaged broad-based index that includes the common stock of 500 companies that tend to be important leaders in important industries within the U.S. economy. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper Large-Cap Growth Fund Index is an unmanaged index of the 30 largest funds, based on total year-end net asset value, in the Lipper Large-Cap Growth Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

39

Enterprise Growth Fund — (Continued)

SUBADVISER’S COMMENTS

The year 2002 is the third year in a row to show negative returns in the equity markets. Despite economic fundamentals showing moderate growth, the stock market continued to fall. Investor confidence, combined with geopolitical risk and corporate malfeasance were the primary reasons the equity markets were unable to price in economic emergence from recession.

The Fund’s stock selection and sector positioning added value versus the benchmark. Most notably, Montag & Caldwell’s decision for the Fund to be over-weighted in consumer staples and healthcare. Consumer staples companies, such as the Procter & Gamble Company and Colgate Palmolive Company, had positive impacts on the Fund’s performance and led the sector. Healthcare companies, such as Johnson & Johnson, Pharmacia Corporation, and Medtronic, showed strong relative returns and helped cushion the Fund’s decline relative to growth stocks in general. The Fund’s industrial holdings, such as 3M Company, Caterpillar Inc., United Parcel Service, and Masco Corp., had a positive impact on relative performance, as did consumer non-cyclical companies such as, Coca Cola, Pepsico, and Gillette. The combination of these over-weighted sectors and strong relative returns from the aforementioned holdings served the Fund well for the year.

The Fund’s holdings in the consumer discretionary, information technology and financial sectors penalized the Fund’s return. The consumer discretionary sector had a negative impact on performance for the year. McDonalds had the greatest negative impact in this sector. Montag & Caldwell added McDonald’s to the Fund’s holdings early in the 2nd quarter based on strong European results and Montag & Caldwell’s positive view of the company’s domestic initiatives, but a very disappointing management update prompted a complete sale of the position. Montag & Caldwell eliminated the Fund’s position in Home Depot as the rapid pace of change in management and culture and difficult competitive environment dampened the company’s earnings momentum. The Fund was under-weight information technology and telecommunication services. A rebound in these very depressed sectors accounted for most of the S&P 500’s fourth quarter return as those sectors gained 22 percent and 38 percent respectively. The under-weighting in information technology and the Fund’s exposure to Electronic Data System’s major earnings disappointment late in the third quarter negatively impacted annual performance.

The Fund’s performance in the financials sector suffered this year as well. The greatest detraction was the Fund’s position in Bank of New York. Montag & Caldwell did, however, exit this position during the fourth quarter, following disappointing third quarter results and lower expectations for revenue and earnings growth looking to next year.

In the Fund’s investment selections, Montag & Caldwell continues to emphasize high quality global growth companies in the consumer staples and healthcare sectors, where valuations and solid earnings growth prospects remain attractive. Also in focus are the shares of high quality cyclical growth businesses in the industrial, consumer discretionary and oil service sectors that are undervalued and can achieve realistic earnings targets. In technology, Montag & Caldwell is seeking companies capable of a reliable earnings recovery in this difficult industry environment.

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

Enterprise Growth Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Domestic Common Stocks — 93.88%
Biotechnology — 3.91%
Amgen Inc. (a)	1,076,600	$	52,042,844
Building & Construction — 3.04%
Masco Corporation	1,920,090		40,417,895
Computer Software — 3.43%
Electronic Arts Inc. (a) (o)	599,255		29,824,921
Microsoft Corporation (a)	305,800		15,809,860
			45,634,781
Consumer Products — 15.85%
Colgate-Palmolive Company	1,270,330		66,603,402
Gillette Company	1,697,530		51,537,011
Newell Rubbermaid Inc.	1,068,000		32,392,440
Procter & Gamble Company	705,000		60,587,700
			211,120,553
Consumer Services — 2.06%
United Parcel Service Inc.	435,800		27,490,264
Entertainment & Leisure — 1.96%
Walt Disney Company	1,603,100		26,146,561
Food, Beverages & Tobacco — 7.67%
Coca-Cola Company	1,458,000		63,889,560
PepsiCo Inc.	907,300		38,306,206
			102,195,766
Hotels & Restaurants — 2.39%
Marriott International Inc. (Class A)	966,586		31,771,682
Insurance — 2.69%
Marsh & McLennan Companies Inc.	776,600		35,886,686
Machinery — 1.25%
Caterpillar Inc. (o)	363,800		16,632,936
Manufacturing — 3.73%
3M Company	403,300		49,726,890
Media — 2.79%
Gannett Company Inc.	517,400		37,149,320
Medical Instruments — 5.17%
Medtronic Inc.	1,508,425		68,784,180
Misc. Financial Services — 2.89%
Citigroup Inc.	1,094,900		38,529,531
Multi-Line Insurance — 3.74%
American International Group Inc.	860,000		49,751,000
Oil Services — 7.66%
GlobalSantaFe Corporation	686,300		16,690,816
Schlumberger Ltd.	1,310,500		55,158,945
Transocean Sedco Forex Inc.	1,297,200		30,095,040
			101,944,801

	Number of Shares or Principal Amount		Value
Pharmaceuticals — 14.38%
Eli Lilly & Company		606,300	$	38,500,050
Johnson & Johnson		1,100,000		59,081,000
Pfizer Inc.		2,107,900		64,438,503
Pharmacia Corporation		705,100		29,473,180
				191,492,733
Retail — 4.42%
Costco Wholesale Corporation (a)		704,055		19,755,783
eBay Inc. (a) (o)		188,500		12,784,070
Kohl’s Corporation (a)		469,300		26,257,335
				58,797,188
Telecommunications — 4.85%
QUALCOMM Inc. (a)		1,776,600		64,650,474
Total Domestic Common Stocks
(Identified cost $1,297,860,813)				1,250,166,085
Foreign Stock — 1.90%
Wireless Communications — 1.90%
Nokia Corporation (Class A) (ADR)		1,637,600		25,382,800
Total Foreign Stock
(Identified cost $29,865,631)				25,382,800
Repurchase Agreement — 3.88%
State Street Bank & Trust Repurchase Agreement, 0.95% due 01/02/03 Proceeds $51,619,724 Collateral: GNMA $51,620,000, 7.00% due 04/20/32, Value $52,963,554	$	51,617,000		51,617,000
Total Repurchase Agreement
(Identified cost $51,617,000)				51,617,000

Total Investments
(Identified cost $1,379,343,444)	$	1,327,165,885
Other Assets Less Liabilities — 0.34%		4,461,429
Net Assets — 100%	$	1,331,627,314

(a) Non-income producing security.

(o) Security, or portion thereof, out on loan at December 31, 2002.

(ADR) American Depository Receipt.

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

41

Enterprise Growth and Income Fund

SUBADVISER’S COMMENTS

Retirement System Investors Inc.

New York, New York

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

Retirement System Investors Inc. (“RSI”) has served as subadviser to the Enterprise Growth and Income Fund since 1991. RSI manages approximately $0.8 billion for all of its clients, and its normal investment minimum is $5 million.

Investment Objective

The objective of the Enterprise Growth and Income Fund is total return through capital appreciation with income as a secondary consideration.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -26.67 percent. The Fund underperformed its benchmark, the S&P 500 Index, which returned -22.11 percent. The Fund underperformed its peer group, the Lipper Large-Cap Core Fund Index, which returned -21.23 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year	5-Year	07/31/97-12/31/02
With Sales Charge	-30.16%	-1.52%	-1.41%
Without Sales Charge	-26.67%	-0.55%	-0.52%
S&P 500 Index*	-22.11%	-0.59%	-0.10%
Lipper Large-Cap Core Fund Index*	-21.23%	-0.74%	-0.38%

Class C	1-Year	5-Year	07/31/97-12/31/02
With Sales Charge	-28.53%	-1.26%	-1.21%
Without Sales Charge	-27.07%	-1.07%	-1.02%
S&P 500 Index*	-22.11%	-0.59%	-0.10%
Lipper Large-Cap Core Fund Index*	-21.23%	-0.74%	-0.38%

Class B	1-Year	5-Year	07/31/97-12/31/02
With Sales Charge	-30.74%	-1.48%	-1.22%
Without Sales Charge	-27.09%	-1.09%	-1.05%
S&P 500 Index*	-22.11%	-0.59%	-0.10%
Lipper Large-Cap Core Fund Index*	-21.23%	-0.74%	-0.38%

Class Y	1-Year	5-Year	10-Year
Average Annual Return	-26.36%	-0.08%	10.21%
S&P 500 Index*	-22.11%	-0.59%	9.34%
Lipper Large-Cap Core Fund Index*	-21.23%	-0.74%	8.04%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.

*The S&P 500 Index is an unmanaged broad-based index that includes the common stock of 500 companies that tend to be important leaders in important industries within the U.S. economy. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper Large-Cap Core Fund Index is an unmanaged index of the 30 largest funds, based on total year-end net asset value, in the Lipper Large-Cap Core Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

42

Enterprise Growth and Income Fund — (Continued)

SUBADVISER’S COMMENTS

The year 2002 marked the third year in a row of stock market declines. In the large capitalization stock sector, value stocks outperformed their growth counterparts. Given the triple threat of the struggling economy, corporate scandals and political instability, the declines in the equity market are not surprising. While the economy avoided the feared double dip recession, growth was far from robust. Consumer buying power, which had been bolstered by wave after wave of mortgage refinancings induced by historically low interest rates, ran out of steam as the year progressed. Corporate spending failed to pick up the slack, so the economy as a whole lacked a real catalyst for renewed, vigorous growth. Corporate scandals, from Tyco to Worldcom to Enron and more, gave skittish investors plenty of reason to stay away from the equity markets until the dust settles. Personal affidavits from chief executive and chief financial officers, filed during the summer, helped to address this concern and lift the markets temporarily, but global political risk kept a lid on the upward move. At year-end, the potential for conflict in both Iraq and North Korea ensured that political uncertainty and the likelihood of armed conflict among nations remained an ongoing part of the investment decision calculation.

With all of these factors weighing on the market, it is not surprising that the relatively best-performing group for the year is a traditionally defensive one — consumer staples. Within that group, Anheuser-Busch Companies, among the Fund’s largest holdings, was a stellar performer. Tradition, however, was not enough to buoy other defensive sectors, such as health care, which declined roughly 20 percent, only slightly outpacing the market overall. The threat of generic competition to branded pharmaceuticals drove price to earnings (“P/E”) multiples in that sizable subgroup down; the Fund remained under-weight in this group throughout the year, although two of the Fund’s largest holdings, Johnson & Johnson and Amgen, Inc., did outperform.

The Fund was positioned at the outset of 2002 to take advantage of an expected rebound in the economy, with sizeable commitments to the industrial and energy sectors. As the year unfolded, the industrial economy continued to limp along, underperforming the market as a whole. Stock selection in the group was mixed: Emerson Electric and an under-weight position in General Electric Company were positive contributors, offset by the negative contribution to performance by Tyco International.

The anticipation of a better 2003 drove a rebound in telecommunications services and information technology stocks in the fourth quarter. In the Technology sector, the Fund’s performance was helped by positions in QUALCOMM Inc. and Cisco Systems, Inc. but hurt by EMC Corporation and Sun Microsystems, which were sold prior to year-end.

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.

43

Enterprise Growth and Income Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Domestic Common Stocks — 90.91%
Aerospace — 8.10%
Honeywell International Inc.	119,475	$	2,867,400
L-3 Communications Holdings Inc. (a) (o)	31,900		1,432,629
Northrop Grumman Corporation	3,900		378,300
Raytheon Company	68,850		2,117,137
United Technologies Corporation	82,300		5,097,662
			11,893,128
Banking — 5.14%
Bank of America Corporation	27,200		1,892,304
J. P. Morgan Chase & Company	174,953		4,198,872
Wells Fargo & Company	31,000		1,452,970
			7,544,146
Biotechnology — 2.38%
Amgen Inc. (a)	68,750		3,323,375
Genentech Inc. (a) (o)	5,300		175,748
			3,499,123
Chemicals — 1.41%
Praxair Inc.	35,850		2,071,055
Computer Hardware — 4.30%
Cisco Systems Inc. (a)	78,500		1,028,350
Dell Computer Corporation (a)	26,800		716,632
Hewlett-Packard Company	39,000		677,040
International Business Machines Corporation	50,120		3,884,300
			6,306,322
Consumer Products — 2.06%
Kimberly-Clark Corporation	63,750		3,026,213
Containers/Packaging — 1.39%
Smurfit-Stone Container Corporation (a) (o)	132,500		2,039,308
Crude & Petroleum — 7.59%
ChevronTexaco Corporation	40,194		2,672,097
ExxonMobil Corporation	242,626		8,477,353
			11,149,450
Electrical Equipment — 5.27%
Emerson Electric Company	141,900		7,215,615
General Electric Company	21,600		525,960
			7,741,575
Food, Beverages & Tobacco — 6.71%
Anheuser-Busch Companies, Inc.	126,900		6,141,960
PepsiCo Inc.	87,750		3,704,805
			9,846,765

	Number of Shares or Principal Amount	Value
Insurance — 1.00%
Marsh & McLennan Companies Inc.	31,700	$	1,464,857
Machinery — 0.17%
Caterpillar Inc.	5,600		256,032
Manufacturing — 2.55%
Ingersoll-Rand Company Ltd.	87,050		3,748,373
Metals & Mining — 2.66%
Alcoa Inc.	171,500		3,906,770
Misc. Financial Services — 3.97%
Citigroup Inc.	145,183		5,108,990
Morgan Stanley Dean Witter & Company	18,100		722,552
			5,831,542
Multi-Line Insurance — 2.01%
American International Group Inc.	50,957		2,947,862
Oil Services — 4.55%
Apache Corporation	76,170		4,340,928
Schlumberger Ltd.	55,700		2,344,413
			6,685,341
Pharmaceuticals — 6.96%
Johnson & Johnson	135,900		7,299,189
Pfizer Inc.	95,262		2,912,159
			10,211,348
Printing & Publishing — 2.98%
McGraw-Hill Companies Inc.	72,300		4,369,815
Retail — 6.23%
Costco Wholesale Corporation (a)	69,583		1,952,499
Home Depot Inc.	53,200		1,274,672
Kohl’s Corporation (a)	26,300		1,471,485
Tiffany & Company	98,000		2,343,180
Wal-Mart Stores Inc.	41,550		2,098,690
			9,140,526
Savings and Loan — 1.10%
Washington Mutual Inc.	46,800		1,616,004
Semiconductors — 3.28%
Applied Materials Inc. (a)	32,350		421,521
Intel Corporation	46,800		728,676
Maxim Integrated Products Inc.	83,304		2,752,364
Texas Instruments Inc.	60,450		907,354
			4,809,915
Technology — 0.95%
Microchip Technology Inc.	57,000		1,393,650

THE ENTERPRISE Group of Funds, Inc.

44

Enterprise Growth and Income Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Telecommunications — 5.55%
QUALCOMM Inc. (a)		86,465	$	3,146,461
SBC Communications Inc.		69,200		1,876,012
Verizon Communications Inc.		80,594		3,123,018
				8,145,491
Transportation — 2.60%
FedEx Corporation		70,450		3,819,799
Total Domestic Common Stocks
(Identified cost $148,413,721)				133,464,410
Foreign Stocks — 6.41%
Crude & Petroleum — 3.98%
BP Amoco (ADR)		89,670		3,645,085
Royal Dutch Petroleum Company (ADR)		49,775		2,191,096
				5,836,181
Manufacturing — 2.43%
Tyco International Ltd.		209,100		3,571,428
Total Foreign Stocks
(Identified cost $16,699,973)				9,407,609
Convertible Preferred Stocks — 0.12%
Wireless Communications — 0.12%
Motorola Inc. (TAPS), 7.00%, 11/16/04 (o)		5,300		169,600
Total Convertible Preferred Stocks
(Identified cost $259,403)				169,600
Commercial Paper — 2.45%
Cargill Global Funding 7.00% due 01/02/03	$	3,600,000		3,599,862
Total Commercial Paper
(Identified cost $3,599,862)			$	3,599,862

	Number of Shares, Contracts or Principal Amount		Value
Repurchase Agreement — 0.15%
State Street Bank & Trust Repurchase Agreement, 0.95% due 01/02/03 Proceeds $221,012 Collateral: GNMA $225,000, 7.00% due 04/20/32, Value $230,856	$	221,000	$	221,000
Total Repurchase Agreement
(Identified cost $221,000)				221,000
Total Investments
(Identified cost $169,193,959)			$	146,862,481
Call Options Written — 0.00%
Emerson Electric Company (a) Strike Price 70, Expires 01/18/03		82		(100)
Total Call Options Written
(Premiums received $8,140)				(100)
Other Assets Less Liabilities — (0.04)%				(60,888)
Net Assets — 100%			$	146,801,493

(a) Non-income producing security.

(o) Security or portion thereof, out on loan at December 31, 2002.

(ADR) American Depository Receipt.

(TAPS) Threshold Appreciation Price Security.

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

45

Enterprise International Growth Fund

SUBADVISER’S COMMENTS

SSgA Funds Management, Inc.

Boston, Massachusetts

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

Vontobel USA, Inc. (“Vontobel USA”) served as subadviser through June 16, 2002. SSgA Funds Management, Inc. (“SSgA”) became the subadviser on June 17, 2002. SSgA manages approximately $44.2 billion and its normal investment minimum is $10 million.

Investment Objective

The objective of the Enterprise International Growth Fund is to seek capital appreciation.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -19.66 percent. The Fund underperformed its benchmark, the MSCI EAFE Index, which returned -15.94 percent. The Fund underperformed its peer group, the Lipper International Fund Index, which returned -13.83 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year	5-Year	10-Year
With Sales Charge	-23.48%	-7.28%	2.07%
Without Sales Charge	-19.66%	-6.37%	2.57%
MSCI EAFE Index*	-15.94%	-2.89%	4.00%
Lipper International Fund Index*	-13.83%	-1.64%	5.56%

Class C	1-Year	5-Year	05/01/97-12/31/02
With Sales Charge	-21.85%	-7.20%	-6.04%
Without Sales Charge	-20.24%	-7.01%	-5.87%
MSCI EAFE Index*	-15.94%	-2.89%	-2.07%
Lipper International Fund Index*	-13.83%	-1.64%	-0.73%

Class B	1-Year	5-Year	05/01/95-12/31/02
With Sales Charge	-24.23%	-7.33%	-1.06%
Without Sales Charge	-20.24%	-7.01%	-1.06%
MSCI EAFE Index*	-15.94%	-2.89%	-0.25%
Lipper International Fund Index*	-13.83%	-1.64%	2.73%

Class Y	1-Year	5-Year	07/31/95-12/31/02
Average Annual Return	-19.46%	-6.06%	-0.75%
MSCI EAFE Index*	-15.94%	-2.89%	-0.67%
Lipper International Fund Index*	-13.83%	-1.64%	1.90%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

*The Morgan Stanley Capital International Europe, Australia, and Far East Index (MSCI EAFE) is an unmanaged index comprised of the stocks of approximately 1,000 companies traded on 21 stock exchanges from around the world, excluding the USA, Canada, and Latin America. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper International Fund Index is an unmanaged index of the 30 largest funds, based on year-end net asset value, in the Lipper International Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

46

Enterprise International Growth Fund — (Continued)

SUBADVISER’S COMMENTS

In the beginning of 2002, Vontobel USA became more discriminating and found themselves with fewer businesses they really trusted. As a result, Vontobel USA reduced the holdings in the Fund to about 60 stocks. The ones that had won a much-coveted place among the Fund’s select constituency of outstanding businesses had a lot in common. They had been around for quite a while and tended to be simpler and more understandable. They had enriched their shareholders for years and Vontobel USA believed they could continue to do so well into the future. The businesses generated high returns on assets and carried little or no debt on their balance sheets to fund their operations. They were companies that enjoyed a special, defensible and durable competitive advantage. In other words, Vontobel USA’s preference had been to own deep franchises.

Since SSgA took over as subadviser of the Fund in mid-year, the U.S. has witnessed a rollercoaster ride in terms of market performance. Having been thoroughly routed through the end of September, markets rallied sharply off oversold levels in October and November before capitulating on low volume and listless trading going into year-end. The Fund underperformed its benchmark over the time period, despite positive contributions from the ever-volatile information technology and telecommunications holdings. Much of the performance shortfall was attributable to the financials sector, where stocks such as Allianz fell sharply in the third quarter and then again towards year-end. Within industrials, Hays and BAE Systems had specific problems and underperformed both the market and their sector. Stock selection within the health care area, such as Celltech Group, also detracted from performance.

As with all international funds, the 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.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

47

Enterprise International Growth Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Common Stocks — 98.75%
Canada — 6.35%
Encana Corporation	76,200	$	2,369,820
Precision Drilling Corporation (a) (o)	38,800		1,255,069
			3,624,889
Finland — 1.90%
Nokia	68,300		1,086,327
France — 11.86%
AXA	123,589		1,659,501
BNP Paribas	35,322		1,439,925
Suez	93,100		1,616,637
TotalFinaElf	14,400		2,057,538
			6,773,601
Ireland — 1.91%
CRH	88,717		1,094,390
Japan — 20.50%
Advantest	36,300		1,626,446
Canon Inc. (o)	56,600		2,130,812
Honda Motor Company Ltd.	51,500		1,904,114
Mitsubishi Tokyo Financial Group Inc.	205		1,113,614
NTT DoCoMo Inc.	1,170		2,157,999
Sony Corporation	66,500		2,777,951
			11,710,936
Netherlands — 4.70%
ASML Holdings (a)	149,804		1,251,883
Philips Electronics	81,600		1,430,652
			2,682,535
Singapore — 2.58%
Flextronics International Ltd. (a)	179,700		1,471,743

	Number of Shares or Principal Amount	Value
Sweden — 1.81%
LM Ericsson Telephone Company (Class B) (a)	1,471,800	$	1,034,914
Switzerland — 14.81%
Nestle	9,045		1,917,784
Novartis	57,949		2,115,585
Swiss Reinsurance	31,100		2,041,226
UBS (a)	49,062		2,385,821
			8,460,416
United Kingdom — 32.33%
Amvescap	274,104		1,756,675
BAE Systems	371,141		741,061
Celltech Group (a)	321,365		1,785,298
Diageo (a)	102,904		1,118,482
GlaxoSmithKline	98,646		1,893,428
Lloyds TSB Group	270,869		1,945,303
Reed Elsevier	138,100		1,183,037
Rio Tinto	93,085		1,858,636
Tesco	346,900		1,083,675
Vodafone Group	1,797,370		3,277,696
WPP Group	238,715		1,823,933
			18,467,224
Total Common Stocks
(Identified cost $66,055,351)			56,406,975
Total Investments
(Identified cost $66,055,351)		$	56,406,975
Other Assets Less Liabilities — 1.25%			714,797
Net Assets — 100%		$	57,121,772

(a) Non-income producing security.

(o) Security, or portion thereof, out on loan at December 31, 2002.

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

48

Industry classifications for the Fund as a percentage of total market value at December 31, 2002 are as follows (unaudited):

Industry
Advertising	3.23%
Aerospace & Defense	1.31%
Automotive	3.38%
Banks	4.53%
Biotechnology	3.17%
Commercial Services & Supplies	2.54%
Communication Equipment	3.75%
Construction Materials	1.94%
Electronic Equipment & Instruments	16.42%
Energy Equipment & Services	2.22%

Food & Beverages	7.30%
Financial Services	10.78%
Insurance	6.56%
Metals & Mining	3.30%
Oil & Gas	7.85%
Publishing	2.10%
Pharmaceuticals	7.11%
Utilities — Electric	2.87%
Wireless Telecommunications	9.64%
Total	100.00%

Enterprise Global Financial Services Fund

SUBADVISER’S COMMENTS

Sanford C. Bernstein & Co., LLC

New York, New York

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

Sanford C. Bernstein & Co., LLC (“Bernstein”), which has approximately $9.9 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.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -9.21 percent. The Fund outperformed its benchmark, the MSCI World Index, which returned -19.89 percent. The Fund outperformed its peer group, the Lipper Financial Services Fund Index, which returned -12.00 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class B	1-Year	10/01/98-12/31/02
With Sales Charge	-13.98%	2.67%
Without Sales Charge	-9.58%	3.10%
MSCI World Index*	-19.89%	-3.08%
Lipper Financial Services Fund Index*	-12.00%	4.06%

Class Y	1-Year	10/01/98-12/31/02
Average Annual Return	-8.80%	4.14%
MSCI World Index*	-19.89%	-3.08%
Lipper Financial Services Fund Index*	-12.00%	4.06%

Class A	1-Year	10/01/98-12/31/02
With Sales Charge	-13.52%	2.49%
Without Sales Charge	-9.21%	3.67%
MSCI World Index*	-19.89%	-3.08%
Lipper Financial Services Fund Index*	-12.00%	4.06%

Class C	1-Year	10/01/98-12/31/02
With Sales Charge	-11.60%	2.85%
Without Sales Charge	-9.80%	3.09%
MSCI World Index*	-19.89%	-3.08%
Lipper Financial Services Fund Index*	-12.00%	4.06%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

*The Morgan Stanley Capital International World Index (MSCI World) is an unmanaged index comprised of more than 1,400 stocks listed on exchanges in the U.S., Europe, Canada, Australia, New Zealand, and the Far East. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper Financial Services Fund Index is an unmanaged index of the 10 largest funds, based on total year-end net asset value, in the Lipper Financial Services Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

49

Enterprise Global Financial Services Fund – (Continued)

SUBADVISER’S COMMENTS

Stock selection increased relative returns by approximately five percent in 2002. The Fund’s U.S. holdings turned in particularly strong performance. Bernstein’s preference for large regional banks with strong traditional banking franchises and low capital market exposures served the Fund well on a relative basis. Similarly, in Europe the Fund’s holdings were weighted more towards banks with strong balance sheets and sound credit and cost control cultures that outperformed the banks with large insurance and capital markets exposures. Country selection also increased relative returns in 2002. The Fund’s over-weight position in Canada and some of the smaller European countries helped relative performance. Further, currency management was yet another factor that helped relative performance in 2002. This was driven by exposure to foreign currencies, which strengthened versus the dollar during the year.

As with all global funds, the 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 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.

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.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

50

Enterprise Global Financial Services Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Common Stocks — 98.92%
Austria — 1.81%
Erste Bank	6,400	$	431,027
Australia — 3.12%
ANZ Banking Group	76,277		741,306
Belgium — 1.53%
KBC Bancassurance Holdings	11,400		363,716
Canada — 9.35%
Bank of Montreal	24,495		649,607
Bank of Nova Scotia Halifax (o)	28,387		949,057
National Bank of Canada (o)	18,200		373,221
Sun Life Financial Services of Canada Inc. (o)	14,900		252,669
			2,224,554
France — 11.32%
AGF (Assurances Generales de France) (o)	16,070		538,188
BNP Paribas	32,000		1,304,502
Societe Generale	14,600		850,693
			2,693,383
Germany — 1.42%
AMB Generali Holding (o)	6,200		338,602
Ireland — 3.13%
Bank of Ireland	72,700		744,160
Italy — 5.59%
Banca Nazionale del Lavoro (a) (o)	35,000		38,766
Intesasbci (o)	222,000		468,464
RAS (Riunione Adriaticadi di Sicurta) (o)	27,600		336,120
UniCredito Italiano (o)	121,500		485,991
			1,329,341
Japan — 3.21%
Promise Company	4,400		156,752
Takefuji Corporation	10,500		605,761
			762,513
Netherlands — 2.84%
ABN Amro Holdings	19,320		316,011
ING Groep	21,270		360,411
			676,422
Norway — 1.56%
DnB Holding	69,300		325,995
Gjensidige	1,400		45,858
			371,853
Singapore — 1.70%
Haw Par Corporation Ltd.	2,395		4,502
United Overseas Bank	58,592		398,608
			403,110
Spain — 2.37%
Banco Bilbao Vizcaya (o)	4,900		46,916
Banco Santander Central Hispano	75,399		517,691
			564,607
Sweden — 1.46%
Nordbanken Holdings	78,500		347,477

	Number of Shares or Principal Amount	Value
Switzerland — 1.96%
Swiss Reinsurance	3,000	$	196,903
UBS (a)	5,560		270,375
			467,278
United Kingdom — 12.70%
Abbey National	31,192		260,175
Bank of Scotland	41,500		994,361
CGNU	40,400		288,189
HBOS	41,600		438,761
Lloyds TSB Group	61,600		442,393
Royal & Sun Alliance Insurance Group	307,390		597,682
			3,021,561
United States — 33.85%
Allstate Corporation	13,800		510,462
Bank of America Corporation	21,300		1,481,841
Comerica Inc. (o)	12,600		544,824
Countrywide Credit Industries Inc. (o)	8,400		433,860
Equity Residential Properties Trust	8,800		216,304
FleetBoston Financial Corporation	23,210		564,003
KeyCorp	26,000		653,640
National City Corporation	4,100		112,012
Regions Financial Corporation (o)	8,100		270,216
Torchmark Corporation (o)	6,000		219,180
Travelers Property Casualty Corporation (a)	20,000		293,000
Trizec Properties Inc.	37,000		347,430
U.S. Bancorp	14,119		299,605
Wachovia Corporation	23,100		841,764
Washington Mutual Inc.	36,650		1,265,525
			8,053,666
Total Common Stocks
(Identified cost $26,148,753)			23,534,576
Total Investments
(Identified cost $26,148,753)		$	23,534,576
Other Assets Less Liabilities — 1.08%			257,624
Net Assets — 100%		$	23,792,200

(a) Non-income producing security.

(o) Security, or portion thereof, out on loan at December 31, 2002.

See notes to financial statements.

Industry classifications for the Fund as a percentage of total market value at December 31, 2002 are as follows (unaudited):

Industry
Banking	74.33	%
Health Care	0.02	%
Insurance	15.17	%
Misc. Financial Services	2.70	%
Real Estate	2.40	%
Savings and Loan	5.38	%
Total	100.00	%

THE ENTERPRISE Group of Funds, Inc.

51

Enterprise Global Health Care Fund

SUBADVISER’S COMMENTS

Nicholas-Applegate Capital Management

San Diego, California

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

Nicholas-Applegate Capital Management (“Nicholas-Applegate”), which has approximately $16.6 billion in assets under management, became subadviser to the Fund on October 31, 2000. Nicholas-Applegate’s normal investment minimum is $10 million.

Investment Objective

The investment objective of the Enterprise Global Health Care Fund is to seek long-term capital appreciation.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -35.48 percent. The Fund underperformed its benchmark, the MSCI World Index, which returned -19.89 percent. The Fund underperformed its peer group, the Lipper Health and Biotechnology Fund Index, which returned -26.21 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year	10/31/00-12/31/02
With Sales Charge	-38.57%	-25.74%
Without Sales Charge	-35.48%	-24.04%
MSCI World Index*	-19.89%	-18.85%
Lipper Health and Biotechnology Fund Index*	-26.21%	-16.56%

Class C	1-Year	10/31/00-12/31/02
With Sales Charge	-37.20%	-24.90%
Without Sales Charge	-35.89%	-24.56%
MSCI World Index*	-19.89%	-18.85%
Lipper Health and Biotechnology Fund Index*	-26.21%	-16.56%

Class B	1-Year	10/31/00-12/31/02
With Sales Charge	-39.02%	-25.96%
Without Sales Charge	-35.82%	-24.56%
MSCI World Index*	-19.89%	-18.85%
Lipper Health and Biotechnology Fund Index*	-26.21%	-16.56%

Class Y	1-Year	10/31/00-12/31/02
Average Annual Return	-35.24%	-23.79%
MSCI World Index*	-19.89%	-18.85%
Lipper Health and Biotechnology Fund Index*	-26.21%	-16.56%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

*The Morgan Stanley Capital International World Index (MSCI World) is an unmanaged index comprised of more than 1,400 stocks listed on exchanges in the U.S., Europe, Canada, Australia, New Zealand, and the Far East. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper Health & Biotechnology Fund Index is an unmanaged index of the 30 largest funds, based on total year-end net asset value, in the Lipper Health & Biotechnology Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

52

Enterprise Global Health Care Fund — (Continued)

SUBADVISER’S COMMENTS

Global equity markets were not kind to investors in 2002, although most of the world’s stock markets staged a comeback late in the period. After declining sharply throughout much of the year, the more growth-oriented biotechnology group recovered in October. This industry now appears oversold and season factors are coming into play as a stream of new data emanates from scientific and medical conferences.

In 2002, stock selection in the hospital industry positively impacted Fund returns. Select holdings in the drugs/pharmaceuticals and the biotechnology industries negatively impacted relative returns. The Fund was over-weight in biotechnology holdings and under-weight in the drugs/pharmaceutical industry.

Top performers during the year included Boston Scientific Corporation, Teva Pharmaceutical Industries and Forest Laboratories. Forest Laboratories, a U.S.-based specialty drug company, is benefiting from robust sales of Celexa, its flagship depression drug, and Lexapro, a recent addition to its antidepressant franchise. Nicholas-Applegate believes that Forest Labs also has a deep pipeline of promising drug candidates, many of which are in the later stages of development.

On February 10, 2003 the Global Health Care Fund’s shareholders approved a tax free exchange of shares between the Global Health Care and Capital Appreciation Funds wherein the latter fund would acquire all of the net assets of the former after the close of business on February 21, 2003.

The Fund is a non-diversified fund that may invest up to 50 percent of its total assets in single issuers totaling more than 5 percent. A loss resulting from a particular security will have a greater impact on the fund’s return. In addition, specific risks for the health care sector include changes in government regulations and scientific and technological advances.

As with all global funds, the Fund carries additional risks associated with possibly less stable foreign securities, currencies, lack of uniform accounting standards and political instability, and these risks are greater in countries with emerging markets since these countries may have unstable governments and less established markets and economies.

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 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.

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.

53

Enterprise Global Health Care Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Domestic Common Stocks — 92.52%
Biotechnology — 8.56%
Amgen Inc. (a)	10,900	$	526,906
Cell Therapeutics Inc. (a) (o)	7,000		50,890
Covance Inc. (a) (o)	5,000		122,950
Genentech Inc. (a) (o)	1,900		63,004
ICOS Corporation (o)	1,100		25,751
InterMune Inc. (a) (o)	2,000		51,020
Molecular Devices Corporation (a) (o)	1,800		29,646
Pharmaceutical Product Development Inc. (a) (o)	3,800		111,226
			981,393
Drugs & Medical Products — 1.78%
Bradley Pharmaceuticals Inc. (a) (o)	2,700		35,181
Cooper Companies Inc. (o)	1,000		25,020
Corixa Corporation (a) (o)	4,400		28,116
Edwards Lifesciences Corporation (a) (o)	1,200		30,564
Hologic Inc. (a) (o)	2,300		28,083
Resmed Inc. (a)	900		27,513
Wright Medical Group Inc. (a) (o)	1,700		29,680
			204,157
Health Care — 4.47%
Aetna Inc.	1,200		49,344
Anthem Inc. (a)	1,000		62,900
Bausch & Lomb Inc.	900		32,400
Cerner Corporation (a) (o)	1,000		31,260
HCA Inc. (o)	4,300		178,450
McKesson Corporation	2,000		54,060
Omnicare Inc.	1,400		33,362
Pediatrix Medical Group Inc. (a)	800		32,048
Triad Hospitals Inc. (a)	1,300		38,779
			512,603
Machinery — 0.25%
Mettler-Toledo International Inc. (a)	900		28,854
Medical Instruments — 13.96%
Advanced Medical Optics Inc. (a) (o)	3,000		35,910
Advanced Neuromodulation Systems Inc. (a) (o)	1,000		35,100
Beckman Coulter Inc. (o)	1,100		32,472
Biomet Inc.	2,300		65,918
Boston Scientific Corporation (a)	4,300		182,836
Charles River Laboratories International Inc. (a) (o)	1,500		57,720
Cytyc Corporation (a)	3,300		33,660
Medtronic Inc.	9,500		433,200
Respironics Inc. (a)	2,000		60,862
St. Jude Medical Inc. (a)	2,900		115,188
Steris Corporation (a)	1,200		29,100
Stryker Corporation	1,200		80,544
Techne Corporation (a) (o)	3,900		111,415

	Number of Shares or Principal Amount	Value
Therasense Inc. (a) (o)	3,700	$	30,895
Varian Medical Systems Inc. (a)	1,300		64,480
Ventana Medical Systems Inc. (a) (o)	5,800		133,690
Zimmer Holdings Inc. (a)	1,600		66,432
Zoll Medical Corporation (a) (o)	900		32,103
			1,601,525
Medical Services — 7.31%
Biogen Inc. (a) (o)	1,200		48,072
Cardinal Health Inc. (o)	3,600		213,084
Computer Programs & Systems Inc. (a) (o)	1,500		37,140
CTI Molecular Imaging Inc. (a) (o)	2,800		69,048
Genzyme Corporation (a)	1,600		47,312
Idexx Labs Inc. (a)	900		29,565
Laboratory Corporation of America Holdings (a)	1,100		25,564
Lincare Holdings Inc. (a)	900		28,458
Quest Diagnostics Inc. (a) (o)	600		34,140
UnitedHealth Group Inc.	2,100		175,350
Universal Health Services Inc. (Class B) (a)	500		22,550
VCA Antech Inc. (a) (o)	2,000		30,000
WellPoint Health Networks Inc. (a)	1,100		78,276
			838,559
Pharmaceuticals — 55.94%
aaiPharma Inc. (a) (o)	2,100		29,442
Abbott Laboratories	12,700		508,000
Abgenix Inc. (a) (o)	3,600		26,532
Accredo Health Inc. (a)	900		31,725
Allergan Inc.	3,200		184,384
AmerisourceBergen Corporation	900		48,879
Amylin Pharmaceuticals Inc. (a) (o)	3,700		59,718
Atrix Labs Inc. (a) (o)	3,700		56,755
Baxter International Inc.	4,900		137,200
BioMarin Pharmaceutical Inc. (a) (o)	4,400		31,020
Bristol-Myers Squibb Company	15,800		365,770
Caremark Rx Inc. (a)	2,000		32,500
Cephalon Inc. (a) (o)	2,100		102,203
Cima Labs Inc. (a) (o)	1,200		29,029
Connetics Corporation (a)	2,700		32,454
CV Therapeutics Inc. (a) (o)	1,300		23,686
Eli Lilly & Company	7,900		501,650
Eon Labs Inc. (a)	5,000		94,550
Forest Laboratories Inc. (a)	1,300		127,686
Gilead Sciences Inc. (a) (o)	2,900		98,600
IDEC Pharmaceuticals Corporation (a) (o)	1,800		59,706
Ilex Oncology Inc. (a)	4,500		31,770
Johnson & Johnson	7,900		424,309
King Pharmaceuticals Inc. (a)	4,000		68,760
Kos Pharmaceuticals Inc. (a) (o)	1,700		32,300
KV Pharmaceutical Company (a) (o)	1,500		34,800
Medarex Inc. (a) (o)	7,800		30,810
Medicis Pharmaceutical Corporation (Class A) (a) (o)	2,700		134,109

THE ENTERPRISE Group of Funds, Inc.

54

Enterprise Global Health Care Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
MedImmune Inc. (a)	4,100	$	111,397
Merck & Company Inc.	10,200		577,422
Millennium Pharmaceuticals Inc. (a) (o)	3,800		30,172
Mylan Laboratories Inc.	1,000		34,900
Neurocrine Biosciences Inc. (a) (o)	2,500		114,150
NPS Pharmaceuticals Inc. (a) (o)	4,000		100,680
Pfizer Inc.	19,000		580,830
Pharmaceutical Resources Inc. (a)	1,200		35,760
Pharmacia Corporation	14,000		585,200
Priority Healthcare Corporation (Class B) (a) (o)	1,400		32,480
Regeneron Pharmaceuticals Inc. (a) (o)	1,800		33,318
Schering-Plough Corporation	11,300		250,860
Scios Inc. (a) (o)	2,100		68,418
Trimeris Inc. (a) (o)	1,200		51,708
Watson Pharmaceuticals Inc. (a) (o)	2,200		62,194
Wyeth	10,900		407,660
			6,415,496
Waste Management — 0.25%
Stericycle Inc. (a) (o)	900		29,141
Total Domestic Common Stocks
(Identified cost $10,603,491)			10,611,728
Foreign Stocks — 6.36%
Drugs & Medical Products — 0.87%
Canada — 0.87%
Biovail Corporation (a) (o)	3,800		100,358
Medical Services — 2.09%
Germany — 0.34%
Fresenius Medical Care (ADR) (o)	2,800		38,556
Switzerland — 1.75%
Alcon Inc. (a) (o)	5,100		201,195
			239,751

	Number of Shares or Principal Amount		Value
Pharmaceuticals — 3.40%
France — 2.46%
Sanofi-Synthelabo		4,600	$	281,307
Israel — 0.94%
Teva Pharmaceutical Industries Ltd. (ADR) (o)		2,800		108,108
				389,415
Total Foreign Stocks
(Identified cost $695,637)				729,524
Repurchase Agreement — 1.43%
State Street Bank & Trust Repurchase Agreement, 0.95% due 01/02/03 Proceeds $164,009 Collateral: GNMA $165,000, 7.00% due 04/20/32 Value $169,295	$	164,000		164,000
Total Repurchase Agreement
(Identified cost $164,000)				164,000
Total Investments
(Identified cost $11,463,128)			$	11,505,252
Other Assets Less Liabilities — (0.31)%				(36,061)
Net Assets — 100%			$	11,469,191

(a) Non-income producing security.

(o) Security, or portion thereof, out on loan at December 31, 2002.

(ADR) American Depository Receipt.

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

55

Enterprise Global Socially Responsive Fund

SUBADVISER’S COMMENTS

Rockefeller & Company

New York, New York

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

Rockefeller & Company, Inc. (“Rockefeller”), which has approximately $3 billion in assets under management, became subadviser to the Fund on September 29, 2000. Rockefeller’s normal investment minimum is $10 million.

Investment Objective

The objective of the Global Socially Responsive Fund is total return.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -18.41 percent. The Fund outperformed its benchmark, the MSCI World Index, which returned -19.89 percent. The Fund outperformed its peer group, the Lipper Global Fund Index, which returned -18.65 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year	09/30/00-12/31/02
With Sales Charge	-22.26%	-15.93%
Without Sales Charge	-18.41%	-14.09%
MSCI World Index*	-19.89%	-18.83%
Lipper Global Fund Index*	-18.65%	-17.52%

Class C	1-Year	09/30/00-12/31/02
With Sales Charge	-20.55%	-15.00%
Without Sales Charge	-18.91%	-14.63%
MSCI World Index*	-19.89%	-18.83%
Lipper Global Fund Index*	-18.65%	-17.52%

Class B	1-Year	09/30/00-12/31/02
With Sales Charge	-22.85%	-16.11%
Without Sales Charge	-18.79%	-14.57%
MSCI World Index*	-19.89%	-18.83%
Lipper Global Fund Index*	-18.65%	-17.52%

Class Y	1-Year	09/30/00-12/31/02
Average Annual Return	-17.96%	-13.66%
MSCI World Index*	-19.89%	-18.83%
Lipper Global Fund Index*	-18.65%	-17.52%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.

*The Morgan Stanley Capital International World Index (MSCI World) is an unmanaged index comprised of more than 1,400 stocks listed on exchanges in the U.S., Europe, Canada, Australia, New Zealand, and the Far East. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper Global Fund Index is an unmanaged index of the 30 largest funds, based on total year-end net asset value, in the Lipper Global Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

56

Enterprise Global Socially Responsive Fund — (Continued)

SUBADVISER’S COMMENTS

The fourth quarter of 2002 saw a modest recovery in the markets, but 2002 will be remembered not only as the third year in a row that equity markets were down but also the negative news they had to digest. After the sharp downtrend in the third quarter, the markets worldwide staged a recovery in October and November. Many stocks moved up from their lows and then retreated again in December. The uptick was too much too fast, and, as much as Rockefeller would have liked to see the year-end on an up note, Rockefeller believes the correction that took place in December was part of a normal digestive process.

In a reversal of the trends of the previous six months, health care and consumer staples provided lukewarm returns while information technology and telecom had sizzling performance. The Fund’s return in the quarter was held back by its under-weight in technology. The technology stocks the Fund held performed quite well: IBM Corporation, Lexmark International Group and STMicroelectronics. Rockefeller has been very selective in this sector in the belief that overall technology spending by the corporate sector should continue to be sluggish, and that only companies with strong balance sheets and healthy customers will do well in this environment. The other sectors that underperformed were industrials, telecommunications and materials. On the plus side, the Fund’s consumer discretionary holdings outperformed, helped again by Cox Communications. Other holdings in the Fund that did well were Philips Electronics, Family Dollar Stores and Pearson. Financials outperformed and got a boost from several stocks that had been hurting performance in the first half of the year: Dexia, Citigroup Inc., BNP Paribas and Sampo Insurance Company. An exception was AFLAC Inc., which had performed quite well year to date, but fell back 2.7 percent for the fourth quarter.

As with all global funds, the 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.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

57

Enterprise Global Socially Responsive Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Common Stocks — 90.10%
Belgium — 1.99%
Dexia	6,700	$	82,087
Bermuda — 1.31%
XL Capital Ltd. (Class A)	700		54,075
Canada — 1.49%
Alcan Inc.	630		18,598
National Bank of Canada	2,100		43,064
			61,662
Denmark —1.04%
Danske Bank	2,600		43,014
Finland — 1.95%
Sampo Insurance Company Ltd. (Class A)	10,600		80,681
France — 4.78%
BNP Paribas	2,700		110,067
Schneider Electric	1,100		52,072
STMicroelectronics	1,800		35,300
			197,439
Israel — 0.60%
Check Point Software Technologies Ltd.	1,900		24,643
Japan — 2.69%
Canon Inc. (ADR)	800		29,480
ITO EN Ltd.	900		30,471
Kao Corporation	1,000		21,940
NTT Corporation	8		29,039
			110,930
Netherlands — 3.30%
Philips Electronics	3,500		61,364
Royal Dutch Petroleum Company (ADR)	1,700		74,834
			136,198
Spain — 0.88%
Telefonica	4,077		36,510
Sweden — 1.36%
Sandvik	2,500		56,051
Switzerland — 1.24%
Novartis	1,400		51,111
United Kingdom — 15.21%
BP Amoco	21,300		146,454
Cadbury Schweppes	15,100		94,098

	Number of Shares or Principal Amount	Value
Chubb	21,900	$	30,945
GlaxoSmithKline	4,400		84,454
Invensys	19,700		16,733
Pearson	5,800		53,655
Reckitt Benckiser	2,600		50,449
Scottish Power	9,300		54,286
Unilever	10,200		97,069
			628,143
United States — 52.26%
AFLAC Inc.	4,300		129,516
Anadarko Petroleum Corporation	2,900		138,910
Bank of America Corporation	1,600		111,312
Bank of Hawaii Corporation	1,700		51,663
Cadence Design Systems Inc.	2,120		24,995
Citigroup Inc.	3,800		133,722
Cox Communications Inc. (Class A)	1,800		51,120
Diebold Inc.	1,100		45,342
Edwards Lifesciences Corporation	1,200		30,564
Eli Lilly & Company	2,250		142,875
Family Dollar Stores Inc.	2,700		84,267
HCA Inc.	1,500		62,250
Ingersoll-Rand Company Ltd.	1,000		43,060
International Business Machines Corporation	400		31,000
Johnson & Johnson	1,300		69,823
Lexmark International Group Inc. (a)	900		54,450
McKesson Corporation	2,100		56,763
Microsoft Corporation (a)	1,100		56,870
PepsiCo Inc.	3,400		143,548
Pfizer Inc.	5,300		162,021
Target Corporation	3,600		108,000
Teleflex Inc.	500		21,444
Wal-Mart Stores Inc.	2,600		131,326
Walt Disney Company	3,300		53,823
WellPoint Health Networks Inc.	1,900		135,204
Wells Fargo & Company	1,800		84,366
			2,158,234
Total Common Stocks
(Identified cost $3,943,388)			3,720,778
Preferred Stocks — 2.38%
Korea — 2.38%
Hyundai Motor Company	4,700		47,553
Samsung Electronics Company Ltd.	400		50,588
			98,141
Total Preferred Stocks
(Identified cost $106,320)			98,141

THE ENTERPRISE Group of Funds, Inc.

58

Enterprise Global Socially Responsive Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Certificates of Deposit — 0.49%
SELF-HELP Economic Development Certificate 1.74%, due 08/30/03 (d) (v) (NCUA insured) (CDFI)	$	10,339	$	10,339
Shore Bank 1.30%, due 12/26/03 (FDIC insured) (CDFI) (d)		10,000		10,000
Total Certificates of Deposit
(Identified cost $20,339)				20,339
Repurchase Agreements — 7.00%
State Street Bank & Trust Repurchase Agreement, 0.95% due 01/02/03 Proceeds $289,015 Collateral: GNMA $290,000, 7.00% due 04/20/32, Value $297,548		289,000		289,000
Total Repurchase Agreements
(Identified cost $289,000)				289,000

	Value
Total Investments
(Identified cost $4,359,047)	$	4,128,258
Other Assets Less Liabilities — 0.03%		1,209
Net Assets — 100%	$	4,129,467

(a) Non-income producing security.

(d) Security is fair valued at December 31, 2002.

(v) Variable rate security; interest rate is as of December 31, 2002.

(ADR) American Depository Receipts.

(CDFI) Community Development Financial Institution.

(FDIC) Federal Deposit Insurance Corporation.

(NCUA) National Credit Union Administration.

Industry classifications for the Fund as a percentage of total market value at December 31, 2002 are as follows (unaudited):

Industry
Automotive	1.25	%
Banking	13.76	%
Business Services	0.77	%
Cable	1.34	%
Computer Hardware	0.81	%
Computer Software	3.98	%
Consumer Durables	1.32	%
Consumer Products	0.57	%
Electronics	5.11	%
Energy	1.42	%
Entertainment & Leisure	1.41	%
Food and Beverages	9.56	%
Health Care	3.12	%

Industry
Insurance	6.92	%
Machinery	1.13	%
Manufacturing	2.47	%
Medical Services & Products	4.34	%
Metals & Mining	0.49	%
Misc. Financial Services	3.50	%
Oil Services	9.43	%
Pharmaceuticals	13.36	%
Printing & Publishing	2.83	%
Retail	8.47	%
Semiconductors	0.92	%
Telecommunications	1.72	%
Total	100.00	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

59

Enterprise Mergers and Acquisitions Fund

SUBADVISER’S COMMENTS

Gabelli Asset Management Company

Rye, New York

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

Gabelli Asset Management Company (“Gabelli”), which manages approximately $21.3 billion for institutional clients and whose normal investment minimum is $1 million, became subadviser to the Fund on February 28, 2001.

Investment Objective

The objective of the Enterprise Mergers and Acquisitions Fund is to seek capital appreciation.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -3.28 percent. The Fund outperformed its benchmark, the S&P 500 Index, which returned -22.11 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year	02/28/01-12/31/02
With Sales Charge	-7.84%	-3.22	%
Without Sales Charge	-3.28%	-0.62	%
S&P 500 Index*	-22.11%	-15.78	%

Class C	1-Year	02/28/01-12/31/02
With Sales Charge	-5.68%	-1.70	%
Without Sales Charge	-3.79%	-1.17	%
S&P 500 Index*	-22.11%	-15.78	%

Class B	1-Year	02/28/01-12/31/02
With Sales Charge	-8.66%	-3.35	%
Without Sales Charge	-3.89%	-1.22	%
S&P 500 Index*	-22.11%	-15.78	%

Class Y	1-Year	02/28/01-12/31/02
Average Annual Return	-2.87%	-0.23	%
S&P 500 Index*	-22.11%	-15.78	%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

*The S&P 500 Index is an unmanaged broad-based index that includes the common stock of 500 companies that tend to be important leaders in important industries within the U.S. economy. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

60

Enterprise Mergers and Acquisitions Fund — (Continued)

SUBADVISER’S COMMENTS

While Gabelli’s goal is to generate positive returns in all environments, 2002 proved to be a particularly challenging year. The arbitrage portion of the Fund was positive for the year, but several stocks that are potential or announced deals were not able to sustain their value in such a difficult market. The mergers and acquisitions market ended 2002 on a very strong note following a weak start. Financial reverberations from accounting scandals, the weak economy, poor earnings and global uncertainty suppressed deal appetite. Mergers and acquisitions worldwide totaled approximately $1.2 trillion in 2002, down about 30 percent from 2001’s $1.7 trillion. The total value of U.S. deals in 2002 fell approximately 41 percent to $448 billion, its lowest level since 1994.

Fear of being labeled a serial acquirer — ala Enron, Tyco, WorldCom — restrained corporate acquirers this past year. Even politics got in the way, with the planned sale of Hershey Foods Corp. squashed by Pennsylvania politicians and community activists, and the sale of Hughes Electronics Corp.’s Direct TV business blocked by federal regulators.

While these factors crimped deal activity for much of the year, the fourth quarter saw the announcement of several major global deals. These included Panamerican Beverages, which agreed to be acquired by Coca Cola Femsa for $3.6 billion in cash and assumed debt, or $22 per share.

The most active sector at year-end was computer software. The long awaited consolidation of the software industry, predicted since the dot-com bubble burst more than two years ago, has finally begun as a steady flow of software deals were announced. These included IBM’s agreement to purchase Rational Software for about $2.1 billion in cash, or $10.50 per share.

Stocks that Gabelli feels represent potential deals in media and telecom were among the best performers for the fourth quarter. Despite the valiant comeback, these stocks remained among the worst performers for the year.

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.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

61

Enterprise Mergers and Acquisitions Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Domestic Common Stocks — 50.40%
Aerospace — 2.00%
Honeywell International Inc.	10,000	$	240,000
Northrop Grumman Corporation	10,000		970,000
Sequa Corporation (Class A) (a) (o)	1,500		58,665
Sequa Corporation (Class B) (a)	2,000		89,000
SPS Technologies Inc. (a) (o)	5,000		118,750
			1,476,415
Automotive — 1.06%
BorgWarner Inc.	5,000		252,100
McGrath Rentcorp	19,600		455,504
Standard Motor Products Inc. (o)	2,000		26,000
Tenneco Automotive Inc. (a)	12,000		48,480
			782,084
Banking — 0.45%
Granite State Bankshares Inc.	1,000		43,690
Mellon Financial Corporation	11,000		287,210
			330,900
Biotechnology — 0.29%
Amgen Inc. (a)	4,499		217,482
Broadcasting — 1.63%
Fisher Companies Inc. (o)	5,400		284,688
Granite Broadcasting Corporation (a)	21,500		44,075
Gray Television Inc.	15,000		146,250
Paxson Communications Corporation (a) (o)	32,000		65,920
Salem Communications Corporation (Class A) (a) (o)	5,300		132,341
Univision Communications Inc. (Class A) (a) (o)	11,000		269,500
Young Broadcasting Inc. (a) (o)	20,000		263,400
			1,206,174
Building & Construction — 1.79%
Nortek Holdings Inc.	24,500		1,120,875
Rollins Inc.	8,000		203,600
			1,324,475
Cable — 1.60%
Cablevision Systems Corporation (Class A) (a)	58,999		987,643
Comcast Corporation (Class A) (a)	8,087		190,611
			1,178,254
Chemicals — 1.73%
Hercules Inc. (a)	33,000		290,400
International Specialty Products Inc.	33,000		336,930
MacDermid Inc.	12,000		274,200
Olin Corporation (o)	24,000		373,200
			1,274,730

	Number of Shares or Principal Amount	Value
Computer Software — 2.92%
BNS Company (Class A) (a)	30,000	$	75,300
Rational Software Corporation (a)	200,000		2,078,000
			2,153,300
Consumer Products — 0.03%
The Dial Corporation	1,000		20,370
Containers/Packaging — 0.22%
Packaging Dynamics Corporation (a)	25,000		165,000
Electrical Equipment — 0.95%
Baldor Electric Company	4,000		79,000
DQE Inc.	10,000		152,400
SL Industries Inc. (a)	26,000		137,800
Thomas & Betts Corporation (a)	12,000		202,800
Thomas Industries Inc. (o)	5,000		130,300
			702,300
Electronics — 0.03%
Fargo Electronics Inc. (a)	2,500		21,800
Energy — 1.77%
DPL Inc.	22,000		337,480
Mirant Corporation (a) (o)	20,000		37,800
Northeast Utilities	40,000		606,800
SEMCO Energy Inc. (o)	12,000		73,200
TECO Energy Inc. (o)	2,000		30,940
Williams Companies Inc.	1		3
Xcel Energy Inc. (o)	20,000		220,000
			1,306,223
Entertainment & Leisure — 1.58%
Acme Communications Inc. (a)	17,000		135,490
E.W. Scripps Company (Class A)	4,500		346,275
Metro Goldwyn Mayer Inc. (a)	45,000		585,000
Walt Disney Company	6,000		97,860
			1,164,625
Finance — 0.83%
BKF Capital Group Inc. (a)	10,300		181,795
Household International Inc.	14,000		389,340
Interactive Data Corporation (a)	3,000		41,250
			612,385
Food, Beverages & Tobacco — 9.13%
Del Monte Foods Company (a)	2,233		17,194
Dole Food Company Inc.	55,000		1,791,900
Dreyer's Grand Ice Cream Inc. (o)	11,000		780,560
Flowers Foods Inc. (a)	11,750		229,243
H.J. Heinz Company	5,000		164,350
Hershey Foods Corporation	22,000		1,483,680
Panamerican Beverages Inc. (Class A)	100,000		2,078,000
Sensient Technologies Corporation (o)	8,000		179,760
Spartan Stores Inc. (a) (o)	8,000		12,080
			6,736,767

THE ENTERPRISE Group of Funds, Inc.

62

Enterprise Mergers and Acquisitions Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Insurance — 0.15%
Argonaut Group Inc. (o)	7,500	$	110,625
Machinery — 0.48%
Tennant Company	6,000		195,600
Watts Industries Inc. (Class A)	10,000		157,400
			353,000
Manufacturing — 3.13%
Cooper Industries Ltd. (Class A) (a)	16,000		583,200
Osmonics Inc. (a)	100,000		1,694,000
Royal Appliance Manufacturing Company (a)	5,000		36,350
			2,313,550
Media — 0.12%
Media General Inc. (Class A) (o)	1,500		89,925
Medical Instruments — 0.42%
Digene Corporation (a)	27,000		309,420
Medical Services — 4.25%
Ameripath Inc. (a)	40,000		860,000
CIRCOR International Inc. (o)	14,400		228,960
Dianon Systems Inc. (a)	43,000		2,051,530
			3,140,490
Metals & Mining — 0.02%
WHX Corporation (a) (o)	6,000		14,700
Misc. Financial Services — 0.67%
Merrill Lynch & Company Inc.	13,000		493,350
Oil Services — 1.08%
Kerr-McGee Corporation	1		44
Penn Virginia Corporation	18,000		654,300
RPC Inc. (o)	12,000		139,200
			793,544
Pharmaceuticals — 6.25%
Bristol-Myers Squibb Company	28,000		648,200
Pharmacia Corporation	38,000		1,588,400
Triangle Pharmaceuticals Inc. (a)	400,000		2,376,000
			4,612,600
Printing & Publishing — 0.95%
McClatchy Company (Class A)	2,000		113,460
Pulitzer Inc.	9,000		404,550
Readers Digest Association Inc.	12,200		184,220
			702,230
Real Estate — 0.20%
Griffin Land & Nurseries Inc. (a) (o)	5,600		81,144
Taubman Centers Inc.	4,000		64,920
			146,064

	Number of Shares or Principal Amount	Value
Telecommunications — 1.80%
AT&T Corporation	5,000	$	130,550
Broadwing Inc. (a)	70,000		246,400
Centurytel Inc.	10,000		293,800
Commonwealth Telephone Enterprises Inc. (Class B) (a) (o)	3,700		135,975
D&E Communications Inc. (o)	22,582		188,785
Rural Celluar Corporation (a) (o)	20,000		17,000
Sprint Corporation (o)	22,000		318,560
			1,331,070
Utilities — 1.59%
Baycorp Holdings Ltd. (a)	29,100		428,934
CH Energy Group Inc.	12,000		559,560
Southwest Gas Corporation	8,000		187,600
			1,176,094
Wireless Communications — 1.28%
Allen Telecom Inc. (a) (o)	3,000		28,410
AT&T Wireless Services Inc. (a) (o)	10,000		56,500
Dobson Communications Corporation (a)	45,000		99,450
Nextel Communications Inc. (Class A) (a)	10,000		115,500
Price Communications Corporation (a)	45,000		622,350
Sprint PCS (a)	5,000		21,900
			944,110
Total Domestic Common Stocks
(Identified cost $39,405,398)			37,204,056
Foreign Stocks — 7.02%
Apparel & Textiles — 2.98%
Gucci Group (ADR) (o)	24,000		2,198,400
Cable — 0.05%
Rogers Communications Inc. (Class B) (a) (o)	4,000		37,520
Energy — 1.01%
Italgas	55,000		748,333
Media — 0.22%
Vivendi Universal (ADR) (a)	10,000		160,700
Transportation — 2.70%
Autostrade	200,000		1,990,516
Wireless Communications — 0.06%
Rogers Wireless Communications (Class B) (a)	5,000		44,000
Total Foreign Stocks
(Identified cost $4,937,415)			5,179,469

THE ENTERPRISE Group of Funds, Inc.

63

Enterprise Mergers and Acquisitions Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Preferred Stock — 0.74%
Broadcasting — 0.74%
Granite Broadcasting Corporation (a)		1,000	$	550,000
Total Preferred Stock
(Identified cost $560,000)				550,000
U.S. Treasury Bills — 39.36%
1.40% due 01/30/03 (s)	$	29,086,000		29,053,197
Total U.S. Treasury Bills
(Identified cost $29,053,197)				29,053,197
Repurchase Agreement — 2.94%
State Street Bank & Trust Repurchase Agreement, 0.95% due 01/02/03 Proceeds $2,174,115 Collateral: GNMA $2,175,000, 7.00% due 04/20/32, Value $2,231,610		2,174,000		2,174,000
Total Repurchase Agreement
(Identified cost $2,174,000)				2,174,000

	Value
Total Investments
(Identified cost $76,130,010)	$	74,160,722
Other Assets Less Liabilities — (0.46)%		(342,036)
Net Assets — 100%	$	73,818,686

(a) Non-income producing security.

(o) Security, or portion thereof, out on loan at December 31, 2002.

(s) The rate shown is the current effective yield.

(ADR) American Depository Receipt.

See notes to financial statements.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

64

Enterprise Technology Fund

SUBADVISER’S COMMENTS

Fred Alger Management, Inc.

New York, New York

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

Fred Alger Management, Inc. (“Alger”), which has approximately $8.4 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 Technology Fund is to seek long-term capital appreciation.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -48.34 percent. The Fund underperformed its benchmark, the S&P 500 Index, which returned -22.11 percent. The Fund underperformed its peer group, the Lipper Science & Technology Fund Index, which returned -41.38 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year	07/01/99-12/31/02
With Sales Charge	-50.79%	-17.50%
Without Sales Charge	-48.34%	-16.34%
S&P 500 Index*	-22.11%	-10.73%
Lipper Science & Technology Fund Index*	-41.38%	-20.49%

Class C	1-Year	07/01/99-12/31/02
With Sales Charge	-49.58%	-16.99%
Without Sales Charge	-48.56%	-16.75%
S&P 500 Index*	-22.11%	-10.73%
Lipper Science & Technology Fund Index*	-41.38%	-20.49%

Class B	1-Year	07/01/99-12/31/02
With Sales Charge	-51.18%	-17.46%
Without Sales Charge	-48.61%	-16.75%
S&P 500 Index*	-22.11%	-10.73%
Lipper Science & Technology Fund Index*	-41.38%	-20.49%

Class Y	1-Year	07/01/99-12/31/02
Average Annual Return	-48.02%	-15.89%
S&P 500 Index*	-22.11%	-10.73%
Lipper Science & Technology Fund Index*	-41.38%	-20.49%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

*The S&P 500 Index is an unmanaged broad-based index that includes the common stock of 500 companies that tend to be important leaders in important industries within the U.S. economy. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper Science & Technology Fund index is an unmanaged index of the 30 largest funds, based on total year-end net asset value, in the Lipper Science & Technology Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

65

Enterprise Technology Fund

SUBADVISER’S COMMENTS

The Fund’s underperformance was due to down equity markets, extremely poor sentiment in the technology industry and most stocks in the Fund moving lower. Several holdings liquidated from the Fund during 2002 turned in horrible performance. These stocks include Amkor Technology, Citrix Systems, Freemarkets, McData Corporation, National Semiconductor Corporation and Verisign. Also, the majority of stocks Alger added to the Fund in 2002 decreased in value.

The twelve months ended December 31, 2002 was an extraordinarily difficult period for equity securities. The first quarter of the year brought an abrupt end to the momentum experienced in the last few months of 2001. After slashing interest rates in dramatic fashion throughout 2001, the Fed failed to cut the Fed Funds rate any further during the quarter. Furthermore, the Enron affair and continued violence in Afghanistan and the Middle East cast a pall over the markets at a time when Alger believes other news should have led to a modest rally. Most equity indices slipped lower during January and February, with value stocks holding up far better than growth stocks. Stock prices did recover somewhat during March, however, with growth stocks leading the rally. On aggregate over the three-month period, growth stock indices finished in negative territory while value stock indices were mostly flat.

The second quarter of 2002 brought more suffering on equity investors. Despite a steady stream of economic data indicating growth in the U.S. economy and a recovery of corporate profits, the market continued to drop on news of further corporate malfeasance. Furthermore, while the Fed continued to maintain interest rates at historically low levels, the absence of further rate cuts provided no impetus for renewed investor optimism. April, May and June saw the continued collapse of most equity indices, with growth stocks and large cap stocks leading the downturn.

Markets continued their downward spiral throughout the third quarter. Unsettled by negative earnings pre-announcements, weaker consumer confidence and disappointing job growth, investors found very little reason to buy. Furthermore, concern over a possible war with Iraq and unresolved corporate accounting scandals helped to exacerbate the selling. Despite the steep decline in stock prices, the Fed decided against any further rate cuts during the three-month period. July, August and September saw the continued collapse of most equity indices, with small cap stocks leading the decline. By the end of September, the Nasdaq had dropped to six-year lows while the S&P 500 reached lows not seen in over five years.

After three consecutive quarters of declines, equity markets found some much needed relief in the fourth quarter of 2002. Fueled in part by solid earnings from bellwethers like Citigroup, IBM and General Motors, a Republican sweep in the midterm elections, and the resignation of Harvey Pitt from the SEC, markets trended higher during the first two months of the fourth quarter. Investor optimism was further encouraged by a larger-than-expected 0.50 percent rate cut by the Fed on November 6th. The positive momentum, however, came to a sudden end during the final month of the year. With tensions escalating in Iraq and North Korea, continued political turmoil in Venezuela, a weak holiday shopping season and the highest unemployment rate in eight years, investors, once again, reversed course and began to unload their equity positions. December saw the collapse of most equity indices, with growth stocks leading the downturn. As 2002 began to wind down, economic and geopolitical uncertainty seemed to be largely driving the markets. Nevertheless, investors seemed to be cautiously optimistic that 2003 would bring an ultimate end to three straight years of market declines.

The 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.

66

Enterprise Technology Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Domestic Common Stocks — 84.78%
Broadcasting — 1.42%
Viacom Inc. (Class B) (a)	17,810	$	725,936
Computer Hardware — 12.47%
Cisco Systems Inc. (a)	148,800		1,949,280
Dell Computer Corporation (a)	58,211		1,556,562
EMC Corporation (a)	131,900		809,866
Hewlett-Packard Company	59,075		1,025,542
International Business Machines Corporation	13,540		1,049,350
			6,390,600
Computer Services — 13.45%
Affiliated Computer Services Inc. (a)	29,955		1,577,131
Bisys Group Inc. (a)	92,855		1,476,394
Comverse Technology Inc. (a)	86,900		870,738
Maxtor Corporation (a)	119,700		605,682
Sun Microsystems Inc. (a)	492,300		1,531,053
Yahoo! Inc. (a)	50,800		830,580
			6,891,578
Computer Software — 14.12%
Borland Software Corporation (a)	41,700		512,910
Microsoft Corporation (a)	39,850		2,060,245
Oracle Corporation (a)	146,500		1,582,200
Overture Services Inc. (a)	18,355		501,275
PeopleSoft Inc. (a)	26,800		490,440
Rational Software Corporation (a)	76,200		791,718
Take-Two Interactive Software (a)	55,250		1,297,823
			7,236,611
Consumer Services — 1.71%
First Data Corporation	24,750		876,397
Electrical Equipment — 1.02%
Intersil Corporation (Class A) (a)	37,500		522,750
Electronics — 1.54%
Micron Technology Inc. (a)	80,975		788,697
Entertainment & Leisure — 4.42%
NetFlix Common Inc. (a)	134,350		1,479,193
Walt Disney Company	48,150		785,327
			2,264,520
Fiber Optics — 0.61%
CIENA Corporation (a)	61,200		314,568
Media — 2.09%
AOL Time Warner Inc. (a)	81,900		1,072,890
Printing & Publishing — 2.53%
Lexmark International Group Inc. (a)	21,400		1,294,700

	Number of Shares or Principal Amount	Value
Retail — 7.44%
Amazon.com Inc. (a)	76,500	$	1,445,085
eBay Inc. (a)	34,950		2,370,309
			3,815,394
Semiconductors — 14.50%
Altera Corporation (a)	43,250		533,705
Analog Devices Inc. (a)	63,675		1,519,922
Applied Materials Inc. (a)	86,500		1,127,095
Fairchild Semiconductor International (Class A) (a)	67,350		721,318
Intel Corporation	76,865		1,196,788
LSI Logic Corporation (a)	87,350		504,010
Maxim Integrated Products Inc.	15,300		505,512
Power Integrations (a)	62,000		1,054,000
Teradyne Inc.(a)	20,750		269,958
			7,432,308
Technology — 3.11%
Accenture Ltd. (Class A) (a)	44,385		798,486
Microchip Technology Inc.	32,525		795,236
			1,593,722
Telecommunications — 4.35%
AT&T Corporation	20,200		527,422
Verizon Communications Inc.	43,970		1,703,837
			2,231,259
Total Domestic Common Stocks
(Identified cost $44,691,052)			43,451,930
Foreign Stocks — 15.51%
Computer Software — 2.18%
Business Objects (ADR) (a)	74,450		1,116,750
Electronics — 1.83%
Flextronics International Ltd. (a)	114,700		939,393
Semiconductors — 6.48%
Marvell Technology Group Ltd. (a)	68,055		1,283,517
STMicroelectronics	80,050		1,561,776
Taiwan Semiconductor Manufacturing Company Ltd. (ADR) (a)	67,822		478,145
			3,323,438
Telecommunications — 1.99%
Amdocs Ltd. (a)	103,900		1,020,298
Wireless Communications — 3.03%
Nokia Corporation (Class A) (ADR)	100,015		1,550,233

THE ENTERPRISE Group of Funds, Inc.

67

Enterprise Technology Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Total Foreign Stocks
(Identified cost $8,763,672)			$	7,950,112
Repurchase Agreement — 1.60%
State Street Bank & Trust Repurchase Agreement, 0.95% due 01/02/03 Proceeds $820,043 Collateral: GNMA $820,000, 7.00% due 04/20/32, Value $841,343	$	820,000		820,000
Total Repurchase Agreement
(Identified cost $820,000)				820,000

	Value
Total Investments
(Identified cost $54,274,724)	$	52,222,042
Other Assets Less Liabilities — (1.89)%		(969,630)
Net Assets — 100%	$	51,252,412

(a) Non-income producing security.

(ADR) American Depository Receipt.

See notes to financial statements.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

68

Enterprise Managed Fund

SUBADVISER’S COMMENTS

Wellington Management Company, LLP

Boston, Massachusetts

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

Wellington Management Company, LLP (“Wellington”), which manages approximately $303 billion for institutional clients and whose usual investment minimum is $25 million for this investment objective, became co-subadviser to the Enterprise Managed Fund on January 1, 2001 and sole-subadviser on August 23, 2002.

Sanford C. Bernstein & Co., LLC (“Bernstein”), was co-subadviser through August 22, 2002.

Investment Objective

The objective of the Enterprise Managed Fund is to seek growth of capital over time.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -21.75 percent. The Fund outperformed its benchmark, the S&P 500 Index, which returned -22.11 percent. By comparison, the Fund underperformed its peer group, the Lipper Flexible Portfolio Fund Index, which returned -14.71 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year	5-Year	10/01/94-12/31/02
With Sales Charge	-25.44%	-5.37%	5.20%
Without Sales Charge	-21.75%	-4.44%	5.83%
S&P 500 Index*	-22.11%	-0.59%	9.97%
Lipper Flexible Portfolio Fund Index*	-14.71%	0.12%	6.33%

Class C	1-Year	5-Year	05/01/97-12/31/02
With Sales Charge	-23.81%	-5.22%	-1.97%
Without Sales Charge	-22.27%	-5.03%	-1.81%
S&P 500 Index*	-22.11%	-0.59%	3.11%
Lipper Flexible Portfolio Fund Index*	-14.71%	0.12%	2.71%

Class B	1-Year	5-Year	05/01/95-12/31/02
With Sales Charge	-26.02%	-5.27%	3.94%
Without Sales Charge	-22.13%	-4.98%	3.94%
S&P 500 Index*	-22.11%	-0.59%	9.02%
Lipper Flexible Portfolio Fund Index*	-14.71%	0.12%	5.93%

Class Y	1-Year	5-Year	07/31/95-12/31/02
Average Annual Return	-21.55%	-4.10%	3.63%
S&P 500 Index*	-22.11%	-0.59%	7.95%
Lipper Flexible Portfolio Fund Index*	-14.71%	0.12%	5.03%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

*The S&P 500 Index is an unmanaged broad-based index that includes the common stock of 500 companies that tend to be important leaders in important industries within the U.S. economy. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper Flexible Portfolio Fund Index is an unmanaged index of the 30 largest funds, based on year-end net asset value, in the Lipper Flexible Portfolio Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

69

Enterprise Managed Fund — (Continued)

SUBADVISER’S COMMENTS

In the first six months of 2002, the S&P 500 experienced its worst first half since it was down 21 percent in the first half of 1970. Although the economy showed signs of moderate growth, including manufacturing gains, the stock market fell sharply. External factors have shaken investor sentiment, namely the corporate accounting scandals and the threats of terrorism. The Fund lagged the S&P 500 benchmark over this period primarily due to stock selection within the industrials and consumer staples sectors. Stock selection in the financials and utilities sectors augmented the Fund’s performance during this period.

Much of the underperformance for the first half of the year can be attributed to one name, Tyco International. Wellington had reasonable confidence in Tyco’s ability to meet its already reduced earnings guidance and that it would be able to successfully execute an initial public offering (“IPO”) of Tyco Capital (CIT Group). The proceeds from such an IPO, along with the anticipated cash flows from ongoing operations, are required to meet the company’s debt obligations over the next 12-18 months. However, in early June the company’s CEO resigned after being indicted in New York State for tax evasion. In light of this new information and the significant turmoil surrounding the company in the aftermath of these events, it was Wellington’s expectation that earnings guidance would be significantly reduced for 2002 and 2003. Wellington was also concerned that these events would derail the IPO of Tyco Capital. While the IPO of Tyco Capital subsequently received SEC approval, the potential earnings shortfall has not been resolved, and it is possible that the company faces significant hurdles to meet its debt obligations over the next 12-18 months. Wellington sold the Fund’s position in 2002 and will revisit this company at a later time when the new management has had an opportunity to understand and disclose all relevant information.

Despite positive returns in the fourth quarter, U.S. equity markets declined for the third consecutive year in 2002 marking one of the worst investment periods in decades. Weak corporate profits, geopolitical uncertainties, corporate governance and accounting scandals, and high consumer leverage all weighed on investor confidence. For the year, value outperformed growth while mid-cap stocks outperformed both large and small-caps.

When Wellington took over complete subadviser responsibilities in late August, at the tail end of a two-week rally in the equity market, Wellington established an under-weight to equities in the Fund, believing that the equity rally had run its course and reflecting Wellington’s growing concern about weaker global growth in 2003. The third quarter of 2002 proved to be a very difficult period for U.S. equity investors with all major indices posting negative returns. The best performing sectors for the Fund on a relative basis were defensive areas such as Industrials and Utilities. The weakest sectors, which tended to be economically sensitive, included materials, consumer discretionary, and telecommunication services. In the fixed-income portion of the Fund, the largest sector over-weight was in the mortgage sector. Despite the dramatic decline in Treasury yields in September, the mortgage backed sector continued to perform well. The higher prepayment risk that inevitably accompanies lower Treasury yields was offset by investors’ preference for the safety and security of government-guaranteed, AAA-rated mortgages.

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.

70

Enterprise Managed Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Domestic Common Stocks — 66.20%
Advertising — 1.21%
Catalina Marketing Corporation (a)	3,700	$	68,450
Omnicom Group Inc.	19,900		1,285,540
			1,353,990
Aerospace — 1.29%
Boeing Company	19,100		630,109
Northrop Grumman Corporation	8,400		814,800
			1,444,909
Apparel & Textiles — 0.88%
Columbia Sportswear Company (a)	5,900		262,078
Liz Claiborne Inc.	12,800		379,520
Mohawk Industries Inc. (a)	6,100		347,395
			988,993
Banking — 4.96%
Bank of America Corporation	15,900		1,106,163
Bank One Corporation	36,800		1,345,040
Banknorth Group Inc.	15,100		341,260
KeyCorp	24,100		605,874
Sovereign Bancorp Inc.	27,300		383,565
UnionBanCal Corporation	22,400		879,648
Wachovia Corporation	24,800		903,712
			5,565,262
Building & Construction — 1.13%
D.R. Horton Inc.	20,000		347,000
Masco Corporation	43,900		924,095
			1,271,095
Business Services — 0.29%
Automatic Data Processing Inc.	8,400		329,700
Cable — 0.94%
Comcast Corporation (a)	44,000		993,960
Cox Radio Inc.	2,500		57,025
			1,050,985
Chemicals — 1.21%
Cabot Microelectronics Corporation (a) (o)	5,000		236,000
Dow Chemical Company	37,700		1,119,690
			1,355,690
Computer Hardware — 3.02%
Cisco Systems Inc. (a)	77,200		1,011,320
Hewlett-Packard Company	66,900		1,161,384
International Business Machines Corporation	14,100		1,092,750
Seagate Technology (a) (d)	5,700		—
Symbol Technologies Inc.	15,100		124,122
			3,389,576

	Number of Shares or Principal Amount	Value
Computer Services — 1.02%
Manhattan Associates Inc. (a) (o)	9,200	$	217,672
Sungard Data Systems Inc. (a)	39,500		930,620
			1,148,292
Computer Software — 3.59%
Cadence Design Systems Inc. (a)	81,100		956,169
Microsoft Corporation (a)	44,500		2,300,650
Oracle Corporation (a)	54,600		589,680
Verity Inc. (a)	13,800		184,796
			4,031,295
Consumer Products — 1.69%
Gillette Company	26,300		798,468
Kimberly-Clark Corporation	18,400		873,448
Polaris Industries Inc. (o)	3,900		228,540
			1,900,456
Containers/Packaging — 0.82%
Pactiv Corporation (a)	20,900		456,874
Smurfit-Stone Container Corporation (a)	29,800		458,652
			915,526
Crude & Petroleum — 2.54%
ChevronTexaco Corporation	12,900		857,592
ExxonMobil Corporation	56,900		1,988,086
			2,845,678
Electrical Equipment — 1.56%
General Electric Company	72,100		1,755,635
Electronics — 0.19%
Sanmina-SCI Corporation (a)	46,600		209,234
Energy — 1.54%
Cinergy Corporation	26,900		907,068
Exelon Corporation	15,600		823,212
			1,730,280
Finance — 1.71%
Federated Investors Inc.	4,900		124,313
Household International Inc.	23,400		650,754
Investment Technology Group	2,500		55,900
Legg Mason Inc.	19,400		941,676
Providian Financial Corporation (a)	23,300		151,217
			1,923,860
Food, Beverages & Tobacco — 1.54%
Constellation Brands Inc. (Class A) (a)	14,400		341,424
General Mills Inc.	7,800		366,210
Pepsi Bottling Group Inc.	4,200		107,940
PepsiCo Inc.	21,500		907,730
			1,723,304

THE ENTERPRISE Group of Funds, Inc.

71

Enterprise Managed Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Health Care — 1.15%
Anthem Inc. (a)	5,330	$	335,257
HCA Inc.	13,000		539,500
Tenet Healthcare Corporation (a)	2,700		44,280
Triad Hospitals Inc. (a)	12,400		369,892
			1,288,929
Hotels & Restaurants — 1.03%
Brinker International Inc. (a) (o)	14,200		457,950
CEC Entertainment Inc. (a)	5,200		159,640
McDonald’s Corporation	33,400		537,072
			1,154,662
Insurance — 1.26%
Gallagher Arthur J & Company	10,900		320,242
Marsh & McLennan Companies Inc.	23,800		1,099,798
			1,420,040
Manufacturing — 1.18%
3M Company	6,700		826,110
ITT Industries Inc.	8,200		497,658
			1,323,768
Media — 1.72%
AOL Time Warner Inc. (a)	82,300		1,078,130
Gannett Company Inc.	11,900		854,420
			1,932,550
Medical Instruments — 1.72%
Edwards Lifesciences Corporation (a) (o)	13,600		346,392
Guidant Corporation (a)	22,900		706,465
Henry Schein Inc. (a)	6,100		274,500
Waters Corporation (a)	27,700		603,306
			1,930,663
Medical Services — 0.99%
Darden Restaurants Inc.	12,700		259,715
Laboratory Corporation of America Holdings (a)	36,600		850,584
			1,110,299
Metals & Mining — 0.58%
Alcoa Inc.	28,800		656,064
Misc. Financial Services — 3.36%
Ambac Financial Group Inc.	5,150		289,636
Citigroup Inc.	55,000		1,935,450
Countrywide Credit Industries Inc.	7,130		368,264
MBIA Inc.	3,000		131,580
Merrill Lynch & Company Inc.	27,700		1,051,215
			3,776,145
Multi-Line Insurance — 1.68%
American International Group Inc.	32,600		1,885,910

	Number of Shares or Principal Amount	Value
Oil Services — 1.88%
Chesapeake Energy Corporation	33,000	$	255,420
EOG Resources Inc.	23,800		950,096
Schlumberger Ltd.	16,000		673,440
Swift Energy Company	23,700		229,179
			2,108,135
Paper & Forest Products — 0.50%
International Paper Company	16,100		563,017
Pharmaceuticals — 7.59%
Abbott Laboratories	30,300		1,212,000
Albany Molecular Research Inc. (a) (o)	21,600		319,486
Caremark Rx Inc. (a)	15,400		250,250
Eli Lilly & Company	14,700		933,450
Gilead Sciences Inc. (a)	14,300		486,200
IDEC Pharmaceuticals Corporation (a)	11,800		391,406
King Pharmaceuticals Inc. (a)	14,500		249,255
Pfizer Inc.	42,900		1,311,453
Pharmacia Corporation	29,100		1,216,380
Schering-Plough Corporation	37,500		832,500
Watson Pharmaceuticals Inc. (a)	11,600		327,932
Wyeth	26,500		991,100
			8,521,412
Property-Casualty Insurance — 0.47%
St. Paul Companies Inc.	15,400		524,370
Retail — 4.08%
CDW Computer Centers Inc. (a)	3,500		153,475
Chico’s FAS Inc. (a) (o)	11,300		213,683
CVS Corporation	24,800		619,256
Home Depot Inc.	32,900		788,284
Linens ’n Things Inc. (a)	10,800		244,080
Michaels Stores Inc. (a)	8,800		275,440
Safeway Inc. (a)	35,600		831,616
Too Inc. (a)	4,800		112,896
Wal-Mart Stores Inc.	26,600		1,343,566
			4,582,296
Semiconductors — 2.12%
Fairchild Semiconductor International (Class A) (a)	18,000		192,780
Intel Corporation	64,100		998,037
International Rectifier Corporation (a)	29,700		548,262
Lattice Semiconductor Corporation (a)	11,100		97,347
Novellus Systems Inc. (a)	4,200		117,936
Texas Instruments Inc.	28,700		430,787
			2,385,149

THE ENTERPRISE Group of Funds, Inc.

72

Enterprise Managed Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Telecommunications — 1.38%
Comverse Technology Inc. (a)		11,500	$	115,230
SBC Communications Inc.		47,000		1,274,170
Tekelec (a)		15,200		158,840
				1,548,240
Transportation — 1.54%
CNF Inc.		7,200		239,328
EGL Inc. (a)		16,200		230,850
FedEx Corporation		23,200		1,257,904
				1,728,082
Waste Management — 0.49%
Waste Management Inc.		23,800		545,496
Wireless Communications — 0.35%
Nextel Communications Inc.     (Class A) (a)		34,300		396,165
Total Domestic Common Stocks
(Identified cost $85,118,743)				74,315,152
Foreign Stocks — 0.78%
Technology — 0.78%
Accenture LTD. (a) (o)		48,600		874,314
Total Foreign Stocks
(Identified cost $867,169)				874,314
Corporate Bonds and Notes — 7.55%
Aerospace — 0.06%
United Technologies Corporation 7.125% due 11/15/10	$	61,000		71,556
Airlines — 0.16%
Continental Airlines 6.703% due 06/15/21		116,395		101,082
Delta Airlines Inc. 7.111% due 09/18/11		75,000		74,135
				175,217
Banking — 0.26%
First Union National Bank 7.875% due 02/15/10		100,000		120,009
NCNB Corporation 10.20% due 07/15/15		50,000		70,416
Popular North America Inc. 6.625% due 01/15/04		100,000		104,251
				294,676

	Number of Shares or Principal Amount		Value
Broadcasting — 0.09%
Clear Channel Communications 6.00% due 11/01/06	$	50,000	$	53,171
Liberty Media Corporation 7.75% due 07/15/09		50,000		54,034
				107,205
Building & Construction — 0.16%
Centex Corporation 5.80% due 09/15/09		125,000		125,755
Masco Corporation 5.875% due 07/15/12		50,000		52,586
				178,341
Cable — 0.22%
Cox Communications Inc. 7.125% due 10/01/12		50,000		55,537
TCI Communications Inc. 8.75% due 08/01/15		50,000		57,550
TCI Communications Inc. 7.125% due 02/15/28		50,000		46,611
USA Networks Inc. 6.75% due 11/15/05		80,000		83,777
				243,475
Chemicals — 0.05%
Dow Chemical Company 6.00% due 10/01/12		50,000		51,100
Energy — 0.77%
Alabama Power Company 5.875% due 12/01/22		70,000		72,043
American Electric Power Inc. 6.125% due 05/15/06		100,000		98,480
Calenergy Inc. 7.52% due 09/15/08		30,000		33,854
Consolidated Natural Gas Company 5.375% due 11/01/06		50,000		52,854
Florida Power & Light Company 5.85% due 02/01/33		25,000		25,607
Keyspan Corporation 6.15% due 06/01/06		40,000		43,459
NSTAR     8.00% due 02/15/10		75,000		90,980
Old Dominion Electric Cooperative 6.25% due 06/01/11		20,000		22,116
Oncor Electric Delivery Company 6.375% due 05/01/12 (144A)		30,000		30,899
Peco Energy Company 4.75% due 10/01/12		30,000		30,166
Pennsylvania Electric Company 6.625% due 04/01/19		25,000		23,429
PSEG Power LLC 7.75% due 04/15/11		75,000		79,558
Scana Corporation (o) 6.25% due 02/01/12		30,000		32,723

THE ENTERPRISE Group of Funds, Inc.

73

Enterprise Managed Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Schlumberger Technology Corporation (144A), 6.50% due 04/15/12	$	125,000	$	140,446
Southern California Gas Company 4.80% due 10/01/12		50,000		50,354
Wisconsin Energy Corporation 6.50% due 04/01/11		35,000		38,814
				865,782
Finance — 0.28%
Erac USA Finance Company (144A) 8.00% due 01/15/11		90,000		103,486
Newcourt Credit Group Inc. 6.875% due 02/16/05		150,000		157,665
PP&L Capital Funding Inc. 6.79% due 11/22/04		50,000		50,686
				311,837
Food, Beverages & Tobacco — 0.19%
Archer Daniels Midland Company 8.875% due 04/15/11		30,000		38,288
Coca Cola Enterprises Inc. 4.375% due 09/15/09		100,000		103,014
Pepsi Bottling Group Inc. 7.00% due 03/01/29		15,000		17,429
Tyson Foods Inc. 6.625% due 10/01/04		50,000		53,163
				211,894
Insurance — 0.18%
Amerus Group Company 6.95% due 06/15/05		50,000		51,004
Liberty Mutual Insurance Company 7.697% due 10/15/2097 (144A)		60,000		45,131
Prudential Insurance Company 6.375% due 07/23/06 (144A)		100,000		107,179
				203,314
Machinery — 0.05%
Caterpillar Inc. (o) 6.55% due 05/01/11		50,000		56,932
Media — 0.14%
AOL Time Warner Inc. 7.70% due 05/01/32		150,000		156,110
Medical Services — 0.03%
Cardinal Health Inc. 6.25% due 07/15/08		30,000		33,716
Metals & Mining — 0.08%
Alcoa Inc.     6.50% due 06/01/11		75,000		84,779

	Number of Shares or Principal Amount		Value
Misc. Financial Services — 1.73%
American Express Company 7.20% due 09/17/07	$	125,000	$	137,924
Citigroup Inc. 7.25% due 10/01/10		180,000		208,956
Ford Motor Credit Company 7.25% due 10/25/11		325,000		315,795
General Electric Capital Corporation, 6.125% due 02/22/11		180,000		194,945
General Electric Capital Corporation, 6.75% due 03/15/32		100,000		110,559
General Motors Acceptance Corporation, 6.875% due 08/28/12		200,000		197,150
Goldman Sachs Group Inc. 6.875% due 01/15/11		100,000		111,624
Hartford Financial Services Group Inc., 7.90% due 06/15/10		50,000		56,843
Household Finance Corporation 6.375% due 10/15/11		165,000		172,508
Merrill Lynch & Company Inc. 6.00% due 02/17/09		200,000		217,309
Morgan Stanley Group Inc. 6.75% due 04/15/11		200,000		222,254
				1,945,867
Multi-Line Insurance — 0.39%
American General Corporation 7.50% due 08/11/10		175,000		205,320
John Hancock Global Funding (144A), 7.90% due 07/02/10		200,000		234,620
				439,940
Oil Services — 1.18%
Burlington Resources Financial Company, 7.40% due 12/01/31		75,000		87,933
Canadian Natural Resourses 6.45% due 06/30/33		75,000		77,469
Chevron Phillips Chemical 7.00% due 03/15/11		75,000		82,695
Chevrontexaco Capital Company 3.50% due 09/17/07		75,000		76,346
Conagra Inc. 7.875% due 09/15/10		100,000		120,932
Devon Funding Corporation 6.875% due 09/30/11		100,000		111,386
Energen Corporation 7.625% due 12/15/10		50,000		54,563
Kinder Morgan Energy Partners 6.75% due 03/15/11		80,000		86,900
Kinder Morgan Inc. 6.50% due 09/01/12 (144A)		70,000		73,155

THE ENTERPRISE Group of Funds, Inc.

74

Enterprise Managed Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Kinder Morgan Inc. 6.50% due 09/01/12	$	100,000	$	104,507
Motiva Enterprises LLC 5.20% due 09/15/12 (144A)		125,000		124,791
Murphy Oil Corporation 6.375% due 05/01/12		50,000		54,950
Southern Natural Gas Company 8.00% due 03/01/32		125,000		110,000
Tosco Corporation 7.625% due 05/15/06		70,000		79,310
Valero Energy Corporation 7.50% due 04/15/32		80,000		81,035
				1,325,972
Paper Products — 0.20%
International Paper Company 6.75% due 09/01/11		100,000		111,271
Mead Corporation 7.35% due 03/01/17		25,000		28,765
Temple Inland Inc. 7.875% due 05/01/12		50,000		55,357
Willamette Industries Inc. 7.00% due 02/01/18		25,000		26,176
				221,569
Pharmaceuticals — 0.12%
Bristol Myers Squibb Company 4.75% due 10/01/06		30,000		31,634
Wyeth     6.25% due 03/15/06		100,000		108,644
				140,278
Property-Casualty Insurance — 0.23%
Ace Capital Trust 9.70% due 04/01/30		100,000		121,463
Berkley W R Corporation 8.70% due 01/01/22		35,000		36,912
Everest Reinsurance Holdings Inc., 8.50% due 03/15/05		50,000		54,683
Fidelity National Financial Inc. 7.30% due 08/15/11		40,000		42,403
				255,461
Real Estate — 0.07%
Spieker Properties LP 7.25% due 05/01/09		75,000		81,531
Retail — 0.29%
Lowes Cosmetics Inc. 6.50% due 03/15/29		125,000		133,706
Staples Inc. 7.375% due 10/01/12 (144A)		50,000		54,891
Target Corporation 5.40% due 10/01/08		70,000		75,633
Wal Mart Stores Inc. 8.00% due 09/15/06		50,000		58,696
				322,926

	Number of Shares or Principal Amount		Value
Savings and Loan — 0.03%
People Bank 9.875% due 11/15/10	$	30,000	$	33,285
Telecommunications — 0.55%
Alltel Corporation 7.00% due 07/01/12		75,000		86,434
Ameritech Capital Funding Corporation, 6.45% due 01/15/18		35,000		37,925
AT&T Corporation 7.30% due 11/15/11		100,000		109,300
SBC Communications Inc. 5.875% due 08/15/12		50,000		53,992
Sprint Capital Corporation 6.375% due 05/01/09		150,000		136,500
Verizon Global Funding Corporation, 7.375% due 09/01/12		170,000		195,592
				619,743
Wireless Communications — 0.04%
AT&T Wireless Services Inc. 8.75% due 03/01/31		50,000		49,000
Total Corporate Bonds and Notes
(Identified cost $8,228,929)				8,481,506
Foreign Bonds — 0.61%
Banking — 0.03%
Bayerische Landesbank Girozentrale 5.65% due 02/01/09		35,000		37,974
Insurance — 0.10%
XL Capital Finance Europe Inc. 6.50% due 01/15/12		100,000		108,279
Manufacturing — 0.05%
Norsk Hydro     7.15% due 11/15/25		50,000		57,316
Misc. Financial Services — 0.09%
Pemex Project Funding Master Trust 9.125% due 10/13/10		90,000		103,050
Oil Services — 0.05%
Petroleos Mexicanos 9.50% due 09/15/27		50,000		56,000
Paper Products — 0.03%
Norske Skogindustrier 7.625% due 10/15/11 (144A)		30,000		32,971

THE ENTERPRISE Group of Funds, Inc.

75

Enterprise Managed Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Telecommunications — 0.18%
Deutsche Telekom International 8.50% due 06/15/10		25,000	$	28,793
France Telecom 8.25% due 03/01/11		100,000		115,627
British Telecommunications 8.375% due 12/15/10		50,000		59,945
				204,365
Wireless Communications — 0.08%
Vodafone Airtouch 7.75% due 02/15/10		50,000		58,969
Vodafone Airtouch 7.875% due 02/15/30		25,000		30,129
				89,098
Total Foreign Bonds
(Identified cost $662,382)				689,053
Asset-Backed Securities — 1.84%
Automotive — 0.91%
Capital Auto Receivables, Series 2002-1, Class A4, 4.16% due 07/16/07	$	200,000		207,848
Capital One Auto Financial Trust, Series 2002-B, Class A4, 3.32% due 04/15/09		250,000		254,609
Daimlerchrysler Auto Trust, Series 2002-B, Class A4, 3.53% due 12/06/07		200,000		205,709
Honda Auto Receivables Owner Trust, Series 2002-3, Class A4, 3.61% due 12/18/07		135,000		139,413
Nissan Auto Receivables Trust, Series 2002-B, Class A4, 4.60% due 09/17/07		200,000		210,836
				1,018,415
Banking — 0.37%
Bank One Issuance Trust, Series 2002-A3, Class A3, 3.59% due 05/17/10		200,000		203,364
MBNA Credit Card Master Note Trust, Series 2002-A1, Class A1, 4.95% due 06/15/09		200,000		215,298
				418,662
Finance — 0.19%
ONYX Acceptance Owner Trust, Series 2001-D, Class A4, 4.32% due 10/15/08		200,000		208,518
Misc. Financial Services — 0.18%
Citibank Credit Card Issuance Trust, Series 2001-A8, Class A8, 4.10% due 12/07/06		200,000		208,176

	Number of Shares or Principal Amount		Value
Utilities — 0.19%
Massachusetts Special Purpose Trust, Series 1999-1, Class A3, 6.62% due 03/15/07	$	200,000	$	215,904
Total Asset-Backed Securities
(Identified cost $2,037,700)				2,069,675
Collateralized Mortgage Obligations — 1.81%
Misc. Financial Services — 1.81%
UBS Commercial Mortgage Trust, Series 2002-C1, Class A4, 6.462% due 03/15/31		180,000		202,595
Asset Securitization Corporation, Series 1997-D4, Class A1D, 7.49% due 04/14/29		155,000		178,360
Bear Stearns Commercial Mortgage Securities Inc., Series 2001-TOP2, Class A2, 6.48% due 02/15/35		200,000		226,965
Chase Commercial Mortgage Securities Corporation, Series 1998-2, Class A2, 6.39% due 11/18/30		145,000		162,503
Morgan Stanley Dean Witter Capital Corporation, 2001-TOP3, Class A4, 6.39% due 07/15/33		200,000		224,793
Morgan Stanley Dean Witter Capital Corporation, Series 1998-WF1, Class A-2, 6.55% due 03/15/30		200,000		225,265
Morgan Stanley Dean Witter Capital Corporation, Series 2001-TOP1, Class A4, 6.66% due 02/15/33		75,000		85,834
Morgan Stanley Dean Witter Capital Corporation, Series 2002-HQ, Class A3, 6.51% due 04/15/34		45,000		50,824
Morgan Stanley Dean Witter Capital Corporation, Series 2002-TOP7, Class A2, 5.98% due 01/15/39		200,000		220,050
Morgan Stanley Dean Witter Capital Corporation, Series 2001-TOP5, Class A4, 6.39% due 10/15/35		200,000		224,514
Nomura Asset Securities Corporation, Series 1998-D6, Class A1B, 6.59% due 03/15/30		200,000		227,014
				2,028,717
Total Collateralized Mortgage Obligations
(Identified cost $1,987,246)				2,028,717
U. S. Treasury Obligations — 2.74%
U. S. Treasury Bills — 0.23%
1.525% due 01/02/03 (p) (s)		90,000		89,996
1.19% due 02/06/03 (p) (s)		50,000		49,941
1.195% due 03/06/03 (p) (s)		50,000		49,894
1.185% due 03/13/03 (p) (s)		70,000		69,836
				259,667

THE ENTERPRISE Group of Funds, Inc.

76

Enterprise Managed Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
U. S. Treasury Bonds — 1.84%
7.50% due 11/15/16	$	400,000	$	523,094
8.125% due 05/15/21		830,000		1,166,572
6.00% due 02/15/26		330,000		378,172
				2,067,838
U. S. Treasury Notes — 0.67%
3.50% due 01/15/11 (TIPS)		677,324		743,468
Total U. S. Treasury Obligations
(Identified cost $2,971,972)				3,070,973
U. S. Government Obligations — 15.36%
Fannie Mae — 3.62%
6.50% due 01/01/03		1,589,843		1,681,011
6.525% due 06/01/09		240,750		272,309
7.125% due 06/15/10		380,000		458,559
7.202% due 10/01/10		245,617		285,366
6.231% due 05/01/11		246,113		272,509
6.21% due 11/01/11		247,230		273,344
5.823% due 12/01/11		247,205		266,782
6.318% due 02/01/12		247,940		275,780
6.094% due 04/01/12		248,431		272,338
				4,057,998
Federal Home Loan Banks — 1.35%
4.125% due 01/14/05		1,450,000		1,515,848
Freddie Mac — 5.73%
7.00% due 07/15/05		675,000		757,213
6.50% due 01/01/17		2,068,161		2,187,093
6.00% due 05/01/17		802,345		839,561
6.00% due 06/01/17		75,495		78,997
6.00% due 06/01/17		707,616		740,439
6.00% due 06/01/17		507,150		530,673
6.00% due 06/01/17		127,685		133,607
7.00% due 06/01/29		93,446		98,324
6.75% due 03/15/31		475,000		568,058
6.00% due 12/15/32 (TBA)		480,000		499,500
				6,433,465
Ginnie Mae — 4.66%
7.00% due 01/15/28		146,004		155,043
7.00% due 03/15/28		163,528		173,652
7.00% due 04/15/28		160,447		170,380
7.00% due 06/15/28		681,969		724,187
6.50% due 08/15/28		1,404,837		1,476,746
6.50% due 10/15/28		29,971		31,505
7.00% due 12/15/28		157,705		167,468
7.00% due 12/15/28		1,218,598		1,294,988
6.00% due 09/15/32		656,641		684,760
6.00% due 10/15/32		140,567		146,543
6.00% due 10/15/32		200,605		209,132
				5,234,404
Total U. S. Government Obligations
(Identified cost $16,961,908)			$	17,241,715

	Number of Shares or Principal Amount		Value
Foreign Government Obligations — 0.15%
Republic of Trinidad & Tobago 9.75% due 07/01/20 (REG S)	$	50,000	$	63,927
United Mexican States 8.375% due 01/14/11		90,000		101,700
				165,627
Total Foreign Government Obligations
(Identified cost $157,075)				165,627
Repurchase Agreement — 3.18%
State Street Bank & Trust Repurchase Agreement, 0.95% due 01/02/03, Proceeds $3,568,188 Collateral: GNMA $3,570,000, 7.00% due 04/20/32, Value $3,662,919		3,568,000		3,568,000
Total Repurchase Agreement
(Identified cost $3,568,000)				3,568,000
Total Investments
(Identified cost $122,561,124)			$	112,504,732
Other Assets Less Liabilities — (0.22)%				(251,213)
Net Assets — 100%			$	112,253,519

(a) Non-income producing security.

(d) Security is fair valued at December 31, 2002.

(o) Security, or portion thereof, out on loan at December 31, 2002.

(p) Security segregated as collateral for open futures contracts.

(s) The rate shown is the current effective yield.

(144A) The security may only be offered and sold to “qualified institutional buyers” under Rule 144A of the Securities Act of 1933.

(REG S) Regulation S Security. Security is offered and sold outside the United States, therefore, it need not be registered with the SEC under  rules 903 and 904 of the Securities Act of 1933.

(TIPS) Treasury Inflation Protected Security. Principal amount is periodically adjusted for inflation.

(TBA) To Be Announced — certain specific security details such as final par amount and maturity date have not yet been determined.

Open futures contracts as of December 31, 2002 were as follows:

Description	Expiration Month	Number of Contracts	Unrealized Appreciation/ (Depreciation)
Short S&P 500 Index Futures	03/03	8	$	42,697
Short S&P Midcap 400 Index Futures	03/03	4		40,068
			$	82,765

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

77

Enterprise Strategic Allocation Fund

SUBADVISER’S COMMENTS

UBS Global Asset Management (US) Inc.

New York, NY

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

UBS Global Asset Management (US) Inc. (“UBS”), with more than $76.6 billion in assets under management and whose usual investment minimum is $50 million, became subadviser to the Fund on August 31, 2001.

Investment Objective

The objective of the Enterprise Strategic Allocation Fund is to seek total return.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -22.07 percent. The Fund outperformed its benchmark, the S&P 500 Index, which returned -22.11 percent. By comparison, the Fund underperformed its peer group, the Lipper Flexible Portfolio Fund Index, which returned -14.71 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year	08/31/01-12/31/02
With Sales Charge	-25.80%	-18.99%
Without Sales Charge	-22.07%	-15.98%
S&P 500 Index*	-22.11%	-15.99%
Lipper Flexible Portfolio Fund Index*	-14.71%	-10.40%

Class C	1-Year	08/31/01-12/31/02
With Sales Charge	-24.01%	-17.00%
Without Sales Charge	-22.49%	-16.37%
S&P 500 Index*	-22.11%	-15.99%
Lipper Flexible Portfolio Fund Index*	-14.71%	-10.40%

Class B	1-Year	08/31/01-12/31/02
With Sales Charge	-26.36%	-18.89%
Without Sales Charge	-22.49%	-16.37%
S&P 500 Index*	-22.11%	-15.99%
Lipper Flexible Portfolio Fund Index*	-14.71%	-10.40%

Class Y	1-Year	08/31/01-12/31/02
Average Annual Return	-21.63%	-15.50%
S&P 500 Index*	-22.11%	-15.99%
Lipper Flexible Portfolio Fund Index*	-14.71%	-10.40%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

*The S&P 500 Index is an unmanaged broad-based index that includes the common stock of 500 companies that tend to be important leaders in important industries within the U.S. economy. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper Flexible Portfolio Fund Index is an unmanaged index of the 30 largest funds, based on year-end net asset value, in the Lipper Flexible Portfolio Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

78

Enterprise Strategic Allocation Fund — (Continued)

SUBADVISER’S COMMENTS

The past year proved to be a difficult year for equity investors, with the S&P 500 Index down approximately 22 percent. In accordance with the Model’s recommendations, the Fund was fully invested, 95 percent, in stocks throughout the year.

The equity market’s failure to price in the economy’s emergence from the first recession in a decade was the product of a number of non-economic events that produced negative investors. UBS believes that the technology sector’s substantial decline continued to cast a shadow over the marketplace, as reflected in an overemphasis on risk. More significantly, however, a number of non-market related factors continued to shake investor confidence. UBS believed these included the ongoing threat of terrorism, continued turmoil in the Middle East, and the specter of a war in Iraq. In addition, the ongoing scrutiny of several well-publicized events continued to cast doubt on the validity of corporate accounting methods and the integrity of security recommendations provided by research analysts.

A turning point came on October 9, when the S&P 500 Index bottomed out in the wake of profit warnings from large U.S. companies and ongoing geopolitical concerns. Schering Plough, TXU and EMC all warned they would miss earnings, and market participants were ever more fearful of the prospect of a conflict with Iraq. Shortly thereafter, General Electric, IBM and Hewlett Packard, all large constituents in the S&P 500, announced earnings that either beat or were in-line with consensus estimates. These reports, followed by positive economic news, led the market higher, and the S&P 500 Index rallied into the end of the year, finishing the fourth quarter up 7.92 percent.

Positive signs on the economic front — in-line or better-than-expected retail sales numbers, jobless claims, durable goods orders, and, of course, the housing sector — combined with the Fed’s November move to lower interest rates, further boosted the rally into year-end.

UBS believes that it is the historical behavior of the economy and the equity market that is captured in the Fund Model’s Equity Risk Premium calculation. While UBS feels that the market has taken more time than usual to price in the generally sound economic fundamentals, they believe the market should at some point. Being highly correlated with the economy, the Fund’s equity allocation, designed to track the S&P 500 Index, means it should participate to the extent it is invested in stocks when the market finally reverses the negative emotions of 2002, and prices in an improved economic picture.

An investment in the Fund is subject to the risk that the manager may not correctly predict when to shift the Fund’s assets from one type of investment to another. In addition, investments in equity securities are subject to the risk that stock prices may fall over short or extended periods of time.

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.

79

Enterprise Strategic Allocation Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Domestic Common Stocks — 93.44%
Advertising — 0.23%
Interpublic Group of Companies Inc.	1,000	$	14,080
Omnicom Group Inc. (o)	500		32,300
TMP Worldwide Inc. (a)	300		3,393
			49,773
Aerospace — 1.82%
Boeing Company	2,100		69,279
General Dynamics Corporation	500		39,685
Goodrich Corporation	300		5,496
Honeywell International Inc.	2,000		48,000
Lockheed Martin Corporation	1,100		63,525
Northrop Grumman Corporation (o)	501		48,569
Raytheon Company	1,000		30,750
Rockwell Collins Inc.	500		11,630
United Technologies Corporation	1,200		74,328
			391,262
Airlines — 0.02%
Delta Air Lines Inc. (o)	400		4,840
Apparel & Textiles — 0.14%
Jones Apparel Group Inc. (a)	300		10,632
Liz Claiborne Inc.	300		8,895
V. F. Corporation (o)	300		10,815
			30,342
Automotive — 0.75%
Delphi Automotive Systems Corporation	1,500		12,075
Ford Motor Company (o)	4,600		42,780
General Motors Corporation (o)	1,400		51,604
Genuine Parts Company (o)	500		15,400
Goodyear Tire & Rubber Company (o)	600		4,086
Johnson Controls Inc. (o)	200		16,034
Navistar International Corporation (a) (o)	200		4,862
Paccar Inc. (o)	300		13,839
			160,680
Banking — 7.03%
AmSouth Bancorporation (o)	900		17,280
Bank of America Corporation	3,700		257,409
Bank of New York Company Inc.	1,800		43,128
Bank One Corporation	2,900		105,995
BB & T Corporation (o)	1,200		44,388
Charter One Financial Inc.	600		17,238
Comerica Inc.	400		17,296
Fifth Third Bancorp	1,400		81,970
First Tennessee National Corporation	300		10,782
FleetBoston Financial Corporation	2,600		63,180
Huntington Bancshares Inc. (o)	600		11,226

	Number of Shares or Principal Amount	Value
J. P. Morgan Chase & Company	5,000	$	120,000
KeyCorp	1,100		27,654
Marshall & Ilsley Corporation	600		16,428
Mellon Financial Corporation	1,100		28,721
National City Corporation	1,500		40,980
North Fork Bancorporation Inc.	400		13,496
Northern Trust Corporation	600		21,030
PNC Financial Services Group (o)	700		29,330
Regions Financial Corporation	600		20,016
SouthTrust Corporation	900		22,365
SunTrust Banks Inc.	700		39,844
Synovus Financial Corporation (o)	800		15,520
U.S. Bancorp	4,700		99,734
Union Planters Corporation	500		14,070
Wachovia Corporation	3,400		123,896
Wells Fargo & Company	4,200		196,854
Zions Bancorporation	200		7,870
			1,507,700
Biotechnology — 0.85%
Amgen Inc. (a)	3,200		154,688
Applied Biosystems Group — Applera Corporation (o)	500		8,770
Chiron Corporation (a) (o)	500		18,800
			182,258
Broadcasting — 1.17%
Clear Channel Communications Inc. (a)	1,500		55,935
Univision Communications Inc. (Class A) (a) (o)	600		14,700
Viacom Inc. (Class B) (a)	4,400		179,344
			249,979
Brokers — 0.06%
Bear Stearns Companies Inc. (o)	200		11,880
Building & Construction — 0.55%
Lowe’s Companies Inc. (o)	1,900		71,250
Masco Corporation (o)	1,200		25,260
Pulte Homes Inc. (o)	200		9,574
Vulcan Materials Company (o)	300		11,250
			117,334
Business Services — 0.66%
Automatic Data Processing Inc.	1,500		58,875
Computer Sciences Corporation (a)	400		13,780
Concord EFS Inc. (a)	1,300		20,462
Paychex Inc.	900		25,110
Robert Half International Inc. (a)	500		8,055
Xerox Corporation (a) (o)	1,800		14,490
			140,772
Cable — 0.63%
Comcast Corporation (Class A) (a) (o)	5,700		134,349

THE ENTERPRISE Group of Funds, Inc.

80

Enterprise Strategic Allocation Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Chemicals — 1.41%
Air Products & Chemicals Inc.	600	$	25,650
Dow Chemical Company	2,300		68,310
Du Pont (E. I.) de Nemours & Company	2,500		106,000
Eastman Chemical Company	200		7,354
Ecolab Inc.	300		14,850
Engelhard Corporation	400		8,940
PPG Industries Inc.	400		20,060
Praxair Inc.	400		23,108
Rohm & Haas Company	600		19,488
Sigma-Aldrich Corporation (o)	200		9,740
			303,500
Computer Hardware — 4.29%
Apple Computer Inc. (a)	900		12,897
Cisco Systems Inc. (a)	17,900		234,490
Dell Computer Corporation (a)	6,400		171,136
EMC Corporation (a)	5,500		33,770
Gateway Inc. (a) (o)	1,000		3,140
Hewlett-Packard Company	7,600		131,936
International Business Machines Corporation	4,200		325,500
NCR Corporation (a) (o)	300		7,122
			919,991
Computer Services — 0.53%
Comverse Technology Inc. (a)	500		5,010
Convergys Corporation (a)	400		6,060
Electronic Data Systems Corporation	1,200		22,116
Sabre Holdings Corporation (a)	400		7,244
Sun Microsystems Inc. (a)	7,800		24,258
Sungard Data Systems Inc. (a)	700		16,492
Unisys Corporation (a) (o)	800		7,920
Yahoo! Inc. (a) (o)	1,500		24,525
			113,625
Computer Software — 4.60%
Adobe Systems Inc.	600		14,880
Autodesk Inc. (o)	300		4,290
BMC Software Inc. (a)	600		10,266
Citrix Systems Inc. (a)	400		4,928
Computer Associates International Inc.	1,400		18,900
Compuware Corporation (a)	1,000		4,800
Electronic Arts Inc. (a) (o)	400		19,908
Intuit Inc. (a)	500		23,460
Mercury Interactive Corporation (a) (o)	200		5,930
Microsoft Corporation (a)	13,300		687,610
Novell Inc. (a)	1,000		3,340
Oracle Corporation (a)	13,300		143,640
PeopleSoft Inc. (a)	800		14,640
Rational Software Corporation (a)	500		5,195

	Number of Shares or Principal Amount	Value
Siebel Systems Inc. (a)	1,200	$	8,976
Veritas Software Corporation (a)	1,000		15,620
			986,383
Conglomerates — 0.08%
Textron Inc.	400		17,196
Construction — 0.09%
Centex Corporation (o)	200		10,040
Fluor Corporation	200		5,600
KB Home (o)	100		4,285
			19,925
Consumer Durables — 0.20%
Dana Corporation	500		5,880
Harley-Davidson Inc.	800		36,960
			42,840
Consumer Non-Durables — 0.15%
Avon Products Inc.	600		32,322
Consumer Products — 3.12%
Alberto-Culver Company (Class B) (o)	200		10,080
Black & Decker Corporation	200		8,578
Brunswick Corporation	300		5,958
Clorox Company	600		24,750
Colgate-Palmolive Company	1,300		68,159
Eastman Kodak Company (o)	700		24,528
Gillette Company	2,600		78,936
International Flavors & Fragrances Inc.	300		10,530
Kimberly-Clark Corporation	1,300		61,711
Mattel Inc.	1,100		21,065
Maytag Corporation	200		5,700
Newell Rubbermaid Inc.	700		21,231
Nike, Inc. (Class B)	700		31,129
Procter & Gamble Company	3,200		275,008
Sherwin-Williams Company	400		11,300
Whirlpool Corporation (o)	200		10,444
			669,107
Consumer Services — 1.22%
Apollo Group Inc. (Class A) (a)	400		17,600
First Data Corporation	1,900		67,279
United Parcel Service Inc.	2,800		176,624
			261,503
Containers/Packaging — 0.10%
Ball Corporation	100		5,119
Pactiv Corporation (a)	400		8,744
Sealed Air Corporation (a) (o)	200		7,460
			21,323
Crude & Petroleum — 3.89%
Anadarko Petroleum Corporation	600		28,740
Burlington Resources Inc.	500		21,325
ChevronTexaco Corporation (o)	2,700		179,496

THE ENTERPRISE Group of Funds, Inc.

81

Enterprise Strategic Allocation Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
ExxonMobil Corporation	16,700	$	583,498
Unocal Corporation	700		21,406
			834,465
Drugs & Medical Products — 0.12%
Becton, Dickinson & Company	600		18,414
Thermo Electron Corporation (a)	400		8,048
			26,462
Electrical Equipment — 3.29%
Dominion Resources Inc.	800		43,920
Emerson Electric Company	1,100		55,935
General Electric Company	24,700		601,445
Tektronix Inc. (a)	200		3,638
			704,938
Electronics — 0.34%
Broadcom Corporation (Class A) (a) (o)	700		10,542
KLA-Tencor Corporation (a) (o)	500		17,685
Micron Technology Inc. (a)	1,500		14,610
QLogic Corporation (a) (o)	200		6,902
Rockwell International Corporation	500		10,355
Sanmina-SCI Corporation (a) (o)	1,400		6,286
Solectron Corporation (a)	2,100		7,455
			73,835
Energy — 1.20%
AES Corporation (a) (o)	1,500		4,530
American Power Conversion Corporation (a)	500		7,575
Calpine Corporation (a) (o)	1,100		3,586
Centerpoint Energy Inc. (o)	900		7,650
Cinergy Corporation (o)	400		13,488
DTE Energy Company	400		18,560
Duke Energy Corporation	2,200		42,988
Entergy Corporation	600		27,354
Exelon Corporation	800		42,216
FirstEnergy Corporation	800		26,376
Progress Energy Inc.	600		26,010
TECO Energy Inc. (o)	500		7,735
TXU Corporation	800		14,944
Williams Companies Inc. (o)	1,600		4,320
Xcel Energy Inc.	1,000		11,000
			258,332
Entertainment & Leisure — 0.69%
Carnival Corporation (o)	1,500		37,425
Harrah’s Entertainment Inc. (a)	300		11,880
International Game Technology (a)	200		15,184
Walt Disney Company	5,100		83,181
			147,670
Fiber Optics — 0.11%
CIENA Corporation (a) (o)	1,100		5,654
Corning Inc. (a) (o)	2,900		9,599
JDS Uniphase Corporation (a) (o)	3,600		8,892
			24,145

	Number of Shares or Principal Amount	Value
Finance — 1.95%
Capital One Financial Corporation (o)	600	$	17,832
Deluxe Corporation	200		8,420
Equifax Inc.	400		9,256
Fiserv Inc. (a)	500		16,975
Franklin Resources Inc.	600		20,448
Goldman Sachs Group Inc.	1,200		81,720
H&R Block Inc. (o)	400		16,080
Household International Inc.	1,200		33,372
Lehman Brothers Holdings Inc.	600		31,974
MBNA Corporation	3,200		60,864
MGIC Investment Corporation	300		12,390
Moody’s Corporation	400		16,516
Providian Financial Corporation (a) (o)	700		4,543
SLM Corporation (o)	400		41,544
State Street Corporation (o)	800		31,200
Stilwell Financial Inc.	600		7,842
T. Rowe Price Group Inc.	300		8,184
			419,160
Food, Beverages & Tobacco — 5.63%
Albertson’s Inc.	900		20,034
Anheuser-Busch Companies, Inc.	2,100		101,640
Archer-Daniels-Midland Company	1,600		19,840
Brown-Forman Corporation (Class B)	200		13,072
Campbell Soup Company	1,000		23,470
Coca-Cola Company	6,100		267,302
Coca-Cola Enterprises Inc.	1,100		23,892
Conagra Inc.	1,300		32,513
Del Monte Foods Company (a)	402		3,095
Fortune Brands Inc.	400		18,604
General Mills Inc. (o)	900		42,255
H.J. Heinz Company	900		29,583
Hershey Foods Corporation	300		20,232
Kellogg Company	1,000		34,270
Pepsi Bottling Group Inc.	700		17,990
PepsiCo Inc.	4,300		181,546
Philip Morris Companies Inc.	5,100		206,703
R.J. Reynolds Tobacco Holdings Inc. (o)	200		8,422
Sara Lee Corporation	1,900		42,769
Supervalu Inc. (o)	400		6,604
Sysco Corporation	1,600		47,664
Wendy’s International Inc.	300		8,121
Winn-Dixie Stores Inc. (o)	400		6,112
Wrigley (William Jr.) Company	600		32,928
			1,208,661
Forest Products — 0.06%
Plum Creek Timber Company Inc.	500		11,800
Health Care — 0.66%
Aetna Inc.	400		16,448
Anthem Inc. (a) (o)	300		18,870

THE ENTERPRISE Group of Funds, Inc.

82

Enterprise Strategic Allocation Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Bausch & Lomb Inc. (o)	100	$	3,600
C.R. Bard Inc.	100		5,800
HCA Inc.	1,300		53,950
HEALTHSOUTH Corporation (a)	1,100		4,620
McKesson Corporation	700		18,921
Tenet Healthcare Corporation (a)	1,200		19,680
			141,889
Hotels & Restaurants — 0.65%
Darden Restaurants Inc.	400		8,180
Hilton Hotels Corporation	1,000		12,710
Marriott International Inc. (Class A)	600		19,722
McDonald’s Corporation	3,100		49,848
Starbucks Corporation (a)	1,000		20,380
Starwood Hotels & Resorts Worldwide Inc.	500		11,870
Yum Brands Inc. (a)	700		16,954
			139,664
Insurance — 0.89%
ACE Ltd.	700		20,538
AFLAC Inc.	1,300		39,156
Aon Corporation (o)	800		15,112
Cigna Corporation	400		16,448
Jefferson-Pilot Corporation	400		15,244
Marsh & McLennan Companies Inc.	1,300		60,073
Progressive Corporation	500		24,815
			191,386
Life Insurance — 0.05%
Torchmark Corporation	300		10,959
Machinery — 0.72%
Caterpillar Inc. (o)	900		41,148
Deere & Company	600		27,510
Dover Corporation	500		14,580
Illinois Tool Works Inc.	800		51,888
Pitney Bowes Inc.	600		19,596
			154,722
Manufacturing — 1.48%
3M Company	1,000		123,300
American Standard Companies Inc. (a)	200		14,228
Avery Dennison Corporation	300		18,324
Cintas Corporation	400		18,300
Cooper Industries Ltd. (Class A) (a)	300		10,935
Danaher Corporation (o)	400		26,280
Eaton Corporation	200		15,622
Ingersoll-Rand Company Ltd.	400		17,224
ITT Industries Inc.	200		12,138
Leggett & Platt Inc.	500		11,220
Millipore Corporation (a)	100		3,400
Molex Inc. (o)	500		11,520
Parker-Hannifin Corporation	300		13,839

	Number of Shares or Principal Amount	Value
Stanley Works	300	$	10,374
W.W. Grainger Inc.	200		10,310
			317,014
Media — 0.91%
AOL Time Warner Inc. (a)	11,100		145,410
Gannett Company Inc.	700		50,260
			195,670
Medical Instruments — 1.39%
Biomet Inc.	600		17,196
Boston Scientific Corporation (a)	1,000		42,520
Guidant Corporation (a)	800		24,680
Medtronic Inc.	3,000		136,800
St. Jude Medical Inc. (a)	400		15,888
Stryker Corporation	500		33,560
Waters Corporation (a)	300		6,534
Zimmer Holdings Inc. (a)	500		20,760
			297,938
Medical Services — 1.09%
Biogen Inc. (a) (o)	400		16,024
Cardinal Health Inc.	1,100		65,109
Genzyme Corporation (a) (o)	500		14,785
Health Management Associates Inc. (Class A) (a)	600		10,740
Humana Inc. (a) (o)	400		4,000
IMS Health Inc.	700		11,200
Manor Care Inc. (a)	300		5,583
Quest Diagnostics Inc. (a)	200		11,380
UnitedHealth Group Inc.	800		66,800
WellPoint Health Networks Inc. (a)	400		28,464
			234,085
Metals & Mining — 0.51%
Alcoa Inc.	2,100		47,838
Freeport McMoRan Copper & Gold (Class B) (a) (o)	400		6,712
Kinder Morgan Inc.	300		12,681
Newmont Mining Corporation (o)	1,000		29,030
Nucor Corporation	200		8,260
United States Steel Corporation	300		3,936
			108,457
Misc. Financial Services — 5.19%
Ambac Financial Group Inc.	300		16,872
American Express Company	3,200		113,120
Charles Schwab Corporation	3,300		35,805
Citigroup Inc.	12,700		446,913
Countrywide Credit Industries Inc.	300		15,495
Fannie Mae	2,500		160,825
Freddie Mac	1,700		100,385
John Hancock Financial Services Inc.	700		19,530
MBIA Inc. (o)	400		17,544

THE ENTERPRISE Group of Funds, Inc.

83

Enterprise Strategic Allocation Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Merrill Lynch & Company Inc.	2,100	$	79,695
Morgan Stanley Dean Witter & Company	2,700		107,784
			1,113,968
Multi-Line Insurance — 2.76%
American International Group Inc.	6,500		376,025
Cincinnati Financial Corporation	400		15,020
Hartford Financial Services Group Inc.	600		27,258
Lincoln National Corporation	400		12,632
Loews Corporation	500		22,230
MetLife Inc. (o)	1,700		45,968
Principal Financial Group (o)	800		24,104
Prudential Financial Inc.	1,400		44,436
SAFECO Corporation	400		13,868
UnumProvident Corporation	600		10,524
			592,065
Oil Services — 1.89%
Amerada Hess Corporation	200		11,010
Apache Corporation	400		22,796
Baker Hughes Inc.	900		28,971
BJ Services Company (a)	400		12,924
Conocophillips	1,700		82,263
Devon Energy Corporation	400		18,360
El Paso Corporation (o)	1,600		11,136
EOG Resources Inc.	300		11,976
Halliburton Company	1,100		20,581
Kerr-McGee Corporation	300		13,290
KeySpan Corporation	400		14,096
Marathon Oil Corporation	800		17,032
Nabors Industries Ltd. (a) (o)	400		14,108
Noble Corporation (a)	300		10,545
Occidental Petroleum Corporation	1,000		28,450
Schlumberger Ltd.	1,500		63,135
Sunoco Inc.	200		6,636
Transocean Sedco Forex Inc.	800		18,560
			405,869
Paper & Forest Products — 0.29%
Bemis Company	100		4,963
Georgia-Pacific Group	600		9,696
International Paper Company	1,200		41,964
Temple-Inland Inc.	100		4,481
			61,104
Paper Products — 0.06%
MeadWestvaco Corporation	500		12,355
Pharmaceuticals — 9.92%
Abbott Laboratories	3,900		156,000
Allergan Inc.	300		17,286
AmerisourceBergen Corporation	300		16,293
Baxter International Inc.	1,500		42,000
Bristol-Myers Squibb Company	4,800		111,120
Eli Lilly & Company	2,800		177,800

	Number of Shares or Principal Amount	Value
Forest Laboratories Inc. (a)	400	$	39,288
Johnson & Johnson	7,400		397,454
King Pharmaceuticals Inc. (a)	600		10,314
MedImmune Inc. (a)	600		16,302
Merck & Company Inc.	5,600		317,016
Pfizer Inc.	15,300		467,721
Pharmacia Corporation	3,200		133,760
Schering-Plough Corporation	3,600		79,920
UST Inc.	400		13,372
Watson Pharmaceuticals Inc. (a)	300		8,481
Wyeth	3,300		123,420
			2,127,547
Printing & Publishing — 0.26%
Donnelley (R. R.) & Sons Company	300		6,531
Lexmark International Group Inc. (a) (o)	300		18,150
McGraw-Hill Companies Inc.	500		30,220
			54,901
Property-Casualty Insurance — 0.66%
Allstate Corporation	1,700		62,883
Chubb Corporation	400		20,880
St. Paul Companies Inc.	600		20,430
Travelers Property Casualty Corporation	2,500		36,625
			140,818
Publishing — 0.35%
Dow Jones & Company Inc. (o)	200		8,646
Knight Ridder Inc.	200		12,650
New York Times Company (o)	400		18,292
Tribune Company	800		36,368
			75,956
Raw Materials — 0.17%
Phelps Dodge Corporation (a)	200		6,330
Weyerhaeuser Company (o)	600		29,526
			35,856
Real Estate — 0.41%
Cendant Corporation (a) (o)	2,600		27,248
Equity Office Properties Trust	1,100		27,478
Equity Residential Properties Trust	700		17,206
Simon Property Group Inc.	500		17,035
			88,967
Retail — 6.29%
Autozone Inc. (a)	200		14,130
Bed Bath & Beyond Inc. (a)	700		24,171
Best Buy Company Inc. (a)	800		19,320
Big Lots Inc. (a)	300		3,969
Circuit City Stores Inc.	500		3,710
Costco Wholesale Corporation (a)	1,100		30,866
CVS Corporation	1,000		24,970
Dollar General Corporation	800		9,560
eBay Inc. (a) (o)	800		54,256

THE ENTERPRISE Group of Funds, Inc.

84

Enterprise Strategic Allocation Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount	Value
Family Dollar Stores Inc.	400	$	12,484
Federated Department Stores Inc. (a)	500		14,380
Gap Inc. (o)	2,200		34,144
Hasbro Inc.	500		5,775
Home Depot Inc.	5,800		138,968
J. C. Penney Company, Inc.	700		16,107
Kohl’s Corporation (a)	800		44,760
Kroger Company (a)	1,900		29,355
Limited Brands	1,300		18,109
May Department Stores Company	800		18,384
Nordstrom Inc. (o)	400		7,588
Office Depot Inc. (a)	800		11,808
Radioshack Corporation (o)	400		7,496
Reebok International Ltd. (a)	200		5,880
Safeway Inc. (a)	1,100		25,696
Sears Roebuck & Company	800		19,160
Staples Inc. (a)	1,200		21,960
Target Corporation	2,300		69,000
Tiffany & Company	400		9,564
TJX Companies Inc.	1,300		25,376
Toys R Us Inc. (a)	600		6,000
Wal-Mart Stores Inc.	10,900		550,559
Walgreen Company	2,500		72,975
			1,350,480
Savings and Loan — 0.50%
Golden West Financial Corporation	400		28,724
Washington Mutual Inc.	2,300		79,419
			108,143
Semiconductors — 2.30%
Advanced Micro Devices Inc. (a) (o)	900		5,814
Altera Corporation (a)	1,000		12,340
Analog Devices Inc. (a) (o)	900		21,483
Applied Materials Inc. (a)	4,100		53,423
Applied Micro Circuits Corporation (a)	800		2,952
Intel Corporation	16,400		255,348
LSI Logic Corporation (a) (o)	1,000		5,770
Maxim Integrated Products Inc.	800		26,432
National Semiconductor Corporation (a)	500		7,505
Novellus Systems Inc. (a)	400		11,232
Nvidia Corporation (a) (o)	400		4,604
Teradyne Inc. (a) (o)	500		6,505
Texas Instruments Inc.	4,300		64,543
Xilinx Inc. (a)	800		16,480
			494,431
Technology — 0.36%
Agilent Technologies Inc. (a) (o)	1,200		21,552
Jabil Circuit Inc. (a) (o)	500		8,960
Linear Technology Corporation	800		20,576
Monsanto Company	700		13,475
Network Appliance Inc. (a) (o)	800		8,000
Symbol Technologies Inc. (o)	600		4,932
			77,495

	Number of Shares or Principal Amount	Value
Telecommunications — 4.06%
ADC Telecommunications Inc. (a)	2,100	$	4,389
Alltel Corporation (o)	800		40,800
AT&T Corporation	1,900		49,609
Avaya Inc. (a) (o)	1,000		2,450
BellSouth Corporation	4,600		119,002
Centurytel Inc. (o)	400		11,752
Citizens Communications Company (a)	700		7,385
Lucent Technologies Inc. (a) (o)	8,700		10,962
QUALCOMM Inc. (a)	2,000		72,780
Qwest Communications International Inc. (a)	4,300		21,500
SBC Communications Inc.	8,200		222,302
Scientific Atlanta Inc. (o)	400		4,744
Sprint Corporation	2,200		31,856
Tellabs Inc. (a) (o)	1,100		7,997
Verizon Communications Inc.	6,800		263,500
			871,028
Transportation — 0.74%
Burlington Northern Santa Fe Corporation	900		23,409
CSX Corporation	500		14,155
FedEx Corporation	700		37,954
Norfolk Southern Corporation	1,000		19,990
Southwest Airlines Company (o)	1,900		26,410
Union Pacific Corporation	600		35,922
			157,840
Utilities — 1.13%
Ameren Corporation	400		16,628
American Electric Power Inc. (o)	900		24,597
Consolidated Edison Inc.	500		21,410
Constellation Energy Group Inc.	400		11,128
Edison International (a)	900		10,665
FPL Group Inc.	500		30,065
NiSource Inc. (o)	600		12,000
PG&E Corporation (a) (o)	1,000		13,900
Pinnacle West Capital Corporation	200		6,818
PPL Corporation	400		13,872
Public Service Enterprise Group Inc.	600		19,260
Sempra Energy (o)	500		11,825
Southern Company	1,800		51,102
			243,270
Waste Management — 0.18%
Allied Waste Industries Inc. (a) (o)	500		5,000
Waste Management Inc.	1,500		34,380
			39,380
Wireless Communications — 0.59%
AT&T Wireless Services Inc. (a) (o)	6,800		38,420
Motorola Inc.	5,700		49,305

THE ENTERPRISE Group of Funds, Inc.

85

Enterprise Strategic Allocation Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Nextel Communications Inc. (Class A) (a)		2,400	$	27,720
Sprint PCS (a) (o)		2,500		10,950
				126,395
Total Domestic Common Stocks
(Identified cost $24,298,070)				20,048,004
Foreign Stocks — 0.51%
Insurance — 0.11%
XL Capital Ltd. (Class A)		300		23,175
Manufacturing — 0.40%
Tyco International Ltd. (o)		5,000		85,400
Total Foreign Stocks
(Identified cost $228,089)				108,575
U. S. Treasury Obligations — 5.20%
U. S. Treasury Notes — 5.20%
6.125% due 08/15/07	$	970,000		1,115,425
Total U. S. Treasury Obligations
(Identified cost $1,038,054)				1,115,425

	Number of Shares or Principal Amount		Value
Repurchase Agreement — 0.47%
State Street Bank & Trust Repurchase Agreement, 0.95% due 01/02/03, Proceeds $101,005 Collateral: U.S. Treasury Note $105,000, 2.00% due 11/30/04, Value $106,235	$	101,000	$	101,000
Total Repurchase Agreement
(Identified cost $101,000)				101,000
Total Investments
(Identified cost $25,665,213)			$	21,373,004
Other Assets Less Liabilities — 0.38%				81,738
Net Assets — 100%			$	21,454,742

(a) Non-income producing security.

(o) Security, or portion thereof, out on loan at December 31, 2002.

See notes to financial statements.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

86

Enterprise Government Securities Fund

SUBADVISER’S COMMENTS

TCW Investment Management Company

Los Angeles, California

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

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 manages approximately $80 billion for institutional clients, and its normal investment minimum for this investment objective is $35 million.

Investment Objective

The objective of the Enterprise Government Securities Fund is to seek current income and safety of principal.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned 8.96 percent. The Fund underperformed its benchmark, the Lehman Brothers Intermediate Government Bond Index, which returned 9.63 percent. The Fund underperformed its peer group, the Lipper General U.S. Government Bond Fund Index, which returned 9.97 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year	5-Year	10-Year
With Sales Charge	3.77%	5.85%	6.26%
Without Sales Charge	8.96%	6.89%	6.78%
Lehman Brothers Intermediate Government Bond Index*	9.63%	7.44%	6.91%
Lipper General US Gov’t Bond Fund Index*	9.97%	6.62%	6.36%

Class C	1-Year	5-Year	05/01/97-12/31/02
With Sales Charge	6.25%	6.06%	6.67%
Without Sales Charge	8.28%	6.27%	6.86%
Lehman Brothers Intermediate Government Bond Index*	9.63%	7.44%	7.73%
Lipper General US Gov’t Bond Fund Index*	9.97%	6.62%	7.33%

Class B	1-Year	5-Year	05/01/95-12/31/02
With Sales Charge	3.29%	5.97%	7.22%
Without Sales Charge	8.29%	6.29%	7.22%
Lehman Brothers Intermediate Government Bond Index*	9.63%	7.44%	7.51%
Lipper General US Gov’t Bond Fund Index*	9.97%	6.62%	7.15%

Class Y	1-Year	5-Year	07/31/97-12/31/02
Average Annual Return	9.37%	7.35%	7.39%
Lehman Brothers Intermediate Government Bond Index*	9.63%	7.44%	7.41%
Lipper General US Gov’t Bond Fund Index*	9.97%	6.62%	6.74%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

*The Lehman Brothers Intermediate Government Bond Index is an unmanaged index of all publicly held US Treasury, government agency, quasi-federal corporate, and corporate debt guaranteed by the US Government with maturities of 1 to 9.99 years. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper General US Government Bond Fund Index is an unmanaged index of the 30 largest funds, based on total year-end net asset value, in the Lipper General US Government Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

87

Enterprise Government Securities Fund — (Continued)

SUBADVISOR’S COMMENTS

The Fund’s mortgage backed holdings underperformed the lagging U.S. Government sector as falling interest rates increased prepayment risk. This underperformance versus the benchmark can be attributed to a noticeable weighting in cash for most of the year, as well as a large weighting in agency bonds. The Fund has historically had a relatively low duration, which causes underperformance versus longer duration bonds in a falling interest rate environment. In 2002, mortgage backed bonds underperformed for most of the year because of low durations. Further, a credit sector rally late in 2002 also contributed to underperformance of mortgages.

The Treasury market outperformed the equity market in 2002 for the third consecutive year, a performance record last observed over 60 years ago, between 1939 and 1941. Corporate accounting scandals, terrorism and political tensions in the Middle East and Asia dampened investor confidence and equity prices, leading many investors to seek the relative safety of the U.S. Treasury market throughout the year.

The Fed kept the overnight bank-lending rate at 1.75 percent until the beginning of November when they implemented a 0.50 percent rate cut to boost economic growth. Although zero percent auto loans and mortgage refinancings provided a boost to consumer spending during the year, lingering weakness in business investment, manufacturing, employment, and confidence dampened the economic recovery in the last half. Unemployment rose to an eight-year high of 6.00 percent in November, but housing remained a bright spot, bolstered by historic lows in mortgage rates and rising home values. Treasuries weakened following news of the Republican Party’s election gains due to the increased likelihood that their proposed tax cuts would increase both the budget deficit and the supply of public debt, putting upward pressure on interest rates. The possibility of a war with Iraq weighed heavily on the market in the fourth quarter, increasing uncertainty, dragging down consumer and market sentiment, and leading investors to the relative safety of the market in U.S. Government securities.

In spite of the record refinancing wave, the mortgage sector earned a respectable return of 8.75 percent in 2002, as investors avoided credit risk and sought the safety and yield of the MBS sector. Mortgages benefited from a lack of credit exposure early in the year and from declining volatility levels in the beginning and end of the year. Mortgages, however, underperformed longer duration fixed income securities during the interest rate rallies in the last half of the year. Mortgages also underperformed in November when the credit sectors staged a strong recovery. Perhaps the most significant outcome of the refinancing wave this year has been the transformation of the mortgage universe. Higher coupon mortgages have been replaced by coupons of 5.50 percent and 6.00 percent, reducing the diversification of the mortgage universe. As a result, mortgage investors are expected to increase their reliance on structured product to minimize prepayment rate risk and earn excess returns.

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.

88

Enterprise Government Securities Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Principal Amount		Value
Agency Obligations — 91.74%
Fannie Mae — 23.63%
5.50%, due 01/01/09	$	791,525	$	832,250
6.50%, due 02/01/09		45,545		48,272
5.50%, due 06/01/09		1,477,672		1,560,345
7.00%, due 03/01/14		536,015		572,504
8.00%, due 11/01/16		1,340,084		1,457,389
6.50%, due 08/01/19		3,570,590		3,756,093
10.00%, due 07/01/20		25,222		28,701
9.50%, due 08/01/20		137,176		151,753
9.50%, due 10/01/20		359,239		397,414
6.00%, due 11/01/28		2,453,741		2,546,681
6.00%, due 11/01/28		4,311,910		4,475,232
7.00%, due 11/01/30		1,628,643		1,713,548
5.68%, due 06/01/32 (v)		4,970,156		5,126,257
4.80%, due 12/01/32 (v)		8,000,683		8,140,695
6.00%, due 10/01/32		9,866,578		10,213,497
4.75%, due 11/01/32 (v)		8,991,170		9,273,049
4.50%, due 04/15/33 (TBA)		13,000,000		13,065,000
				63,358,680
Freddie Mac Participation Certificates — 4.54%
7.00%, due 09/01/17		395,365		420,074
7.00%, due 10/01/17		560,896		595,950
10.00%, due 10/01/18		281,518		320,541
10.00%, due 07/01/20		510,375		583,105
10.00%, due 10/01/20		271,255		309,821
9.00%, due 10/01/22		474,660		528,992
6.50%, due 02/01/31		3,565,476		3,715,655
6.50%, due 03/01/31		3,098,177		3,228,674
6.50%, due 05/01/31		2,364,670		2,464,271
				12,167,083
Federal Housing Administration — 0.64%
7.18%, due 02/20/29		1,708,174		1,725,256
Federal Home Loan Banks — 9.23%
6.50%, due 07/01/21		4,603,814		4,829,825
6.00%, due 10/01/31		7,386,192		7,648,477
4.893%, due 11/01/32 (v)		12,000,000		12,280,546
				24,758,848
Government National Mortgage Association — 53.70%
9.00%, due 08/15/16		2,430		2,703
7.00%, due 12/15/27		1,794,567		1,908,527
6.50%, due 08/15/28		800,741		841,728
6.00%, due 01/15/29		2,796,106		2,919,879
6.50%, due 02/20/29		4,450,395		4,646,180
6.50%, due 05/15/29		3,137,327		3,296,897
7.00%, due 06/15/29		1,504,117		1,595,846
7.00%, due 10/15/29		2,519,963		2,673,645
6.50%, due 04/20/31		10,606,442		11,066,847
6.00%, due 12/15/31		9,047,610		9,432,021
6.00%, due 12/15/31		2,541,264		2,649,236
6.00%, due 12/15/31		6,634,284		6,916,158
6.00%, due 01/15/32		9,703,043		10,115,511
6.50%, due 01/15/32		8,297,310		8,714,616
6.50%, due 01/15/32		8,162,473		8,572,997
5.00%, due 03/20/32		4,221,397		4,326,505
6.50%, due 06/15/32		13,281,698		13,949,689
6.00%, due 09/15/32		11,831,132		12,334,064
5.50%, due 12/15/32		17,000,000		17,474,219
5.50%, due 12/15/32		1,000,000		1,027,895
7.00%, due 10/15/33		14,370,149		14,732,648
5.95%, due 11/15/33		4,384,412		4,781,673
				143,979,484

	Principal Amount		Value
Total Agency Obligations
(Identified cost $237,722,419)			$	245,989,351
Collateralized Mortgage Obligations — 5.79%
Chase Mortgage Finance Corporation 20.34%, due 05/25/28 (v)	$	3,386,325		4,113,359
Structured Asset Securities Corporation 6.75%, due 03/25/29		1,966,753		2,011,854
Fannie Mae Series 1994-10 Class M 6.50%, due 06/25/23		187,571		189,906
Freddie Mac Series 1634 Class SB 8.80%, due 12/15/23 (v)		2,090,056		2,139,437
GNMA Series 2002-42 Class KZ 6.00%, due 06/16/32		4,842,774		4,996,793
PNC Mortgage Securities Corporation 6.25%, due 02/25/14		1,358,698		1,398,610
PNC Mortgage Securities Corporation Series 1998-5 6.625%, due 07/25/28		659,713		678,357
Total Collateralized Mortgage Obligations
(Identified cost $12,883,254)				15,528,316
Commercial Paper — 4.85%
BMW US Capital Corporation 1.31%, due 01/21/03		13,000,000		12,990,539
Total Commercial Paper
(Identified cost $12,990,539)				12,990,539
Repurchase Agreements — 1.42%
State Street Bank & Trust Repurchase Agreement 0.95%, due 01/02/03 Proceeds $3,803,201 Collateral: GNMA $3,805,000, 7.00% due 04/20/32, Value $3,904,036		3,803,000		3,803,000
Total Repurchase Agreements
(Identified cost $3,803,000)				3,803,000
Total Investments
(Identified cost $267,399,212)			$	278,311,206
Other Assets Less Liabilities — (3.80)%				(10,180,172)
Net Assets — 100%			$	268,131,034

(v) Variable interest rate security; interest rate is as of December 31, 2002.

(TBA) To be announced — certain specific security details such as final par amount and maturity date have not yet been determined.

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

89

Enterprise High-Yield Bond Fund

SUBADVISER’S COMMENTS

Caywood-Scholl Capital Management

San Diego, California

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

Caywood-Scholl Capital Management (“Caywood-Scholl”) has been subadviser to the Enterprise High-Yield Bond Fund since its inception in 1987. Caywood-Scholl manages approximately $1.5 billion for institutional clients, and its normal investment minimum is $3 million.

Investment Objective

The objective of the Enterprise High-Yield Bond Fund is to seek maximum current income.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned -0.18 percent. The Fund outperformed its benchmark, the Lehman Brothers High Yield BB Bond Index, which returned -1.79 percent. The Fund outperformed its peer group, the Lipper High Yield Bond Fund Index, which returned -2.41 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year	5-Year	10-Year
With Sales Charge	-4.89%	0.67%	6.07%
Without Sales Charge	-0.18%	1.66%	6.58%
Lehman Brothers High Yield BB Bond Index*	-1.79%	4.29%	7.85%
Lipper High Yield Bond Fund Index*	-2.41%	-1.80%	4.69%

Class C	1-Year	5-Year	05/01/97-12/31/02
With Sales Charge	-2.79%	0.88%	2.62%
Without Sales Charge	-0.84%	1.08%	2.81%
Lehman Brothers High Yield BB Bond Index*	-1.79%	4.29%	5.56%
Lipper High Yield Bond Fund Index*	-2.41%	-1.80%	0.35%

Class B	1-Year	5-Year	05/01/95-12/31/02
With Sales Charge	-5.45%	0.81%	4.88%
Without Sales Charge	-0.83%	1.08%	4.88%
Lehman Brothers High Yield BB Bond Index*	-1.79%	4.29%	7.14%
Lipper High Yield Bond Fund Index*	-2.41%	-1.80%	3.21%

Class Y	1-Year	5-Year	07/31/97-12/31/02
Average Annual Return	0.29%	2.14%	2.79%
Lehman Brothers High Yield BB Bond Index*	-1.79%	4.29%	4.54%
Lipper High Yield Bond Fund Index*	-2.41%	-1.80%	-0.91%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

*The Lehman Brothers High Yield BB Bond Index is an unmanaged index of fixed rate, public non-convertible securities that are rated Ba1 or lower by Moody’s Investor Services, or BB+ or lower by Standard & Poors, if a Moody’s rating is not available. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper High Yield Bond Fund Index is an unmanaged index of the 30 largest funds, based on year-end net asset value, in the Lipper High Yield Bond Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

90

Enterprise High-Yield Bond Fund — (Continued)

SUBADVISER’S COMMENTS

For the Fund, 2002 was one of the most difficult markets since the early 1990s. The combination of credit deterioration, credit rating migration, stock market volatility/losses, bankruptcy acceleration, lack of access to capital, terrorist threats, fear of deflation, corporate malfeasance, faulty accounting, potential for war, and numerous SEC investigations gave high yield investors plenty to worry about. As a result it was a very volatile year characterized by relatively thin markets and tremendous price moves on scant activity. Despite the problematic conditions, the Fund performed relatively well for the year.

The high-yield marketplace’s fundamentals were a mixed bag at the end of the fourth quarter. On the positive front, default rates appear to be declining; though on a historical basis they are still high. In 2002 default rates peaked at 10.68 percent, as compared to their previous peak of 12.79 percent in 1991. At the end of November the trailing twelve-month default rate was 8.70 percent. Continued pressure on default statistics is due mostly to the fallen angel universe. Bankruptcies of larger cap companies such as Conseco and United Airlines tend to dwarf that of a typical high-yield issuer.

Some of the more mixed signals within the market’s fundamental picture are corporate profitability, access to capital, and the domestic economy. Corporate profitability appears to be on the mend albeit at a very slow pace. The frustrating rate of profit recovery is a function of over-capacity, an uncertain economic backdrop, and lackluster final demand. Caywood-Scholl does not anticipate any near-term changes to this equation. So while corporate America gradually reduces its cost structure, Caywood-Scholl believes a slow methodical increase in profits should occur. Access to capital, which was an area of great concern this past summer, appears to have improved in the fourth quarter. The U.S. markets have seen an uptick in demand from both the bank loan and high-yield markets. However, terms and pricing of debt capital have not uniformly improved, with certain industries finding access to capital very difficult. The market for equity capital remains difficult for leveraged companies. In general, the equity markets have rewarded companies for lowering their leverage, but in many cases it has been difficult to raise these funds. Accordingly, balance sheet repair has been slow. Lastly, the general economy is sluggish. Consensus GDP for 2003 at 2.6 percent appears somewhat optimistic and is predicated on backend-loaded growth. Caywood-Scholl’s concerns pertaining to corporate investment, consumer confidence, and the global economy lead them to believe GDP growth should slightly underperform consensus.

As for some of the larger problems within the market’s fundamental balance, corporate malfeasance and the geopolitical situation are ever evolving. The negative influence of corporate misdeeds appears to have somewhat waned during the fourth quarter. New revelations of corporate cheating diminished, and disclosure on past transgression has moved from the front pages to the middle sections of the press. Progress was made in dealing with some of the more notorious figures from the various scandals and Wall Street partially settled with the SEC for their complicity in these matters. This is not to downplay the damage that has been done to investor confidence but to identify that the healing process is progressing. Lastly, what can you say about geopolitical risk? The U.S. appears to be at the threshold of war, North Korea has increased global instability, and weariness of terrorist activity is ever present. The overlay of geopolitical risk will not recede in coming quarters, but rise and fall with the unfolding of events. The market is slowly adjusting to this reality by moderating and diversifying risk and inflating temporary safe havens, for example treasuries and gold, until investable trends are discerned.

The U.S. markets ended the year on a solid technical foundation. Through the year, the Fund benefited from investors’ desire to increase allocations to fixed-income while seeking broader portfolio diversification. This trend in demand appeared to accelerate in the fourth quarter, perhaps due to high-yield’s oversold condition established in the third quarter. As a result, the market experienced a strong technical rally beginning early in October, which did not slow until mid December. During this period new allocations of cash and reductions of cash positions within portfolios bolstered the market.

Against this demand, supply remained rather tame, though December was one of the busiest months of the year. Total issuance for the fourth quarter was $15.0 billion bringing issuance for the year to $65.7 billion. This compares to $53.8 billion in 2000 and $83.7 billion in 2001.

There are specific risks associated with the types of bonds held in the 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.

THE ENTERPRISE Group of Funds, Inc.

91

Enterprise High-Yield Bond Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Domestic Corporate Bonds — 85.52%
Apparel & Textiles — 1.80%
Fruit of the Loom Inc. 8.875%, due 04/15/06 (b)	$	300,000	$	6,750
Levi Strauss & Company 7.00%, due 11/01/06		1,100,000		957,000
Levi Strauss & Company 12.25%, due 12/15/12 (144A)		1,500,000		1,470,000
Levi Strauss & Company 11.625%, due 01/15/08 (o)		925,000		904,187
				3,337,937
Automotive — 2.83%
Autonation Inc. 9.00%, due 08/01/08		1,500,000		1,515,000
Avis Group Holdings Inc. 11.00%, due 05/01/09		750,000		821,250
Navistar International Corporation 9.375%, due 06/01/06		650,000		624,000
Sonic Automotive Inc. 11.00%, due 08/01/08 (o)		1,150,000		1,173,000
United Rentals Inc. 9.25%, due 01/15/09 (o)		50,000		40,875
United Rentals Inc. (Series B) 8.80%, due 08/15/08 (o)		1,350,000		1,076,625
				5,250,750
Banking — 0.84%
Western Financial Bank 8.875%, due 08/01/07		850,000		823,438
Western Financial Bank 9.625%, due 05/15/12		750,000		727,500
				1,550,938
Broadcasting — 1.66%
Echostar DBS Corporation 9.125%, due 01/15/09		500,000		526,250
Echostar DBS Corporation 9.375%, due 02/01/09		1,750,000		1,850,625
Sinclair Broadcast Group Inc. 8.75%, due 12/15/11		650,000		699,563
				3,076,438
Building & Construction — 1.46%
Building Materials Corporation America 7.75%, due 07/15/05		350,000		290,500
Integrated Electrical Services 9.375%, due 02/01/09		250,000		230,000
Integrated Electrical Services 9.375%, due 02/01/09 (o)		1,650,000		1,518,000
Nortek Inc. 8.875%, due 08/01/08		400,000		409,000
Nortek Inc. (Series B) 9.125%, due 09/01/07		250,000		256,250
				2,703,750

	Number of Shares or Principal Amount		Value
Business Services — 1.10%
Xerox Corporation 9.75%, due 01/15/09 (144A) (o)	$	450,000	$	432,000
Xerox Corporation 7.20%, due 04/01/16 (o)		2,150,000		1,612,500
				2,044,500
Cable — 2.17%
Adelphia Communications Corporation 8.375%, due 02/01/08 (b) (o)		250,000		92,500
Adelphia Communications Corporation 7.875%, due 05/01/09 (b) (o)		250,000		92,500
Adelphia Communications Corporation 9.375%, due 11/15/09 (b)		600,000		231,000
Adelphia Communications Corporation 10.875%, due 10/01/10 (b) (o)		250,000		95,000
Charter Communication Holdings 8.625%, due 04/01/09		1,450,000		645,250
Charter Communications Holdings 10.75%, due 10/01/09		200,000		90,500
Cox Communications Inc. 6.75%, due 03/15/11 (o)		800,000		860,786
CSC Holdings Inc. 7.625%, due 04/01/11		2,000,000		1,877,500
CSC Holdings Inc. 8.125%, due 07/15/09 (o)		50,000		48,063
				4,033,099
Chemicals — 1.42%
FMC Corporation 10.25%, due 11/01/09 (144A)		1,000,000		1,080,000
Lyondell Chemical Company 9.875%, due 05/01/07		450,000		432,000
PCI Chemicals Canada Company 10.00%, due 12/31/08 (o)		253,742		177,619
Pioneer Americas Inc. 5.298%, due 12/31/06 (v)		84,581		58,467
Scotts Company 8.625%, due 01/15/09	$	850,000		896,750
				2,644,836
Communications — 0.00%
Globalstar Telecommunications (Wts) (a) (d) (m) (144A)		700		—
Loral Space & Communication Ltd. (Wts) (a)		850		164
Loral Space & Communications (Wts) (a)		5,584		335
				499
Computer Software — 0.00%
Verado Holdings Inc. (Wts) (a)		500		139

THE ENTERPRISE Group of Funds, Inc.

92

Enterprise High-Yield Bond Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Consumer Products — 2.62%
Chattem Inc. (Series B) 8.875%, due 04/01/08	$	734,000	$	756,020
Elizabeth Arden Inc. 11.75%, due 02/01/11 (o)		850,000		875,500
French Fragrances Inc. (Series B) 10.375%, due 05/15/07 (o)		550,000		517,000
French Fragrances Inc. (Series D) 10.375%, due 05/15/07		150,000		136,500
Sealy Mattress Company (Series B) 10.875%, due 12/15/07 (o)		2,650,000		2,570,500
				4,855,520
Containers/Packaging — 1.62%
Ball Corporation 6.875%, due 12/15/12 (144A)		400,000		402,000
Owens Brockway Glass Container 8.75%, due 11/15/12 (144A)		450,000		456,750
Owens Illinois Inc. 8.10%, due 05/15/07 (o)		350,000		337,750
Owens Illinois Inc. 7.35%, due 05/15/08 (o)		1,250,000		1,159,375
Owens Illinois Inc. 7.50%, due 05/15/10 (o)		700,000		644,000
				2,999,875
Electrical Equipment — 0.67%
BRL Universal Equipment 8.875%, due 02/15/08		1,200,000		1,248,000
Energy — 4.52%
Calpine Canada Energy Finance 8.50%, due 05/01/08		2,325,000		1,011,375
Calpine Corporation 7.75%, due 04/15/09 (o)		800,000		336,000
CMS Energy Corporation 8.90%, due 07/15/08		700,000		623,000
CMS Energy Corporation 7.50%, due 01/15/09		850,000		722,500
CMS Energy Corporation 9.875%, due 10/15/07 (o)		550,000		522,500
Cogentrix Energy Inc. 8.75%, due 10/15/08		1,250,000		582,339
El Paso Corporation 7.00%, due 05/15/11 (o)		1,950,000		1,326,000
Illinois Power Company 11.50%, due 12/15/10 (144A)		2,000,000		1,930,000
Ocean Energy Inc. (Series B) 8.375%, due 07/01/08		650,000		684,125
PSEG Power 6.95%, due 06/01/12		650,000		659,967
				8,397,806
Entertainment & Leisure — 0.14%
International Game Technology 7.875%, due 05/15/04		250,000		260,000

	Number of Shares or Principal Amount		Value
Food, Beverages & Tobacco — 5.47%
Canandaigua Brands Inc. 8.625%, due 08/01/06	$	550,000	$	583,000
Canandaigua Brands Inc. 8.50%, due 03/01/09 (o)		500,000		523,750
Cott Beverages Inc. 8.00%, due 12/15/11		450,000		477,000
Dole Food Inc. 7.25%, due 05/01/09		750,000		726,354
Ingles Markets Inc. 8.875%, due 12/01/11		2,150,000		1,988,750
Land O Lakes Inc. 8.75%, due 11/15/11		350,000		194,250
NBTY Inc. (Series B) 8.625%, due 09/15/07		1,000,000		1,015,000
Smithfield Foods Inc 7.625%, due 02/15/08		1,125,000		1,096,875
Stater Brothers Holdings Inc. 10.75%, due 08/15/06		1,850,000		1,877,750
Winn-Dixie Stores Inc. 8.875%, due 04/01/08 (o)		1,625,000		1,661,562
				10,144,291
Health Care — 2.84%
Advanced Med Optics Inc. 9.25%, due 07/15/10		1,750,000		1,802,500
Beverly Enterprises Inc. 9.625%, due 04/15/09 (o)		950,000		798,000
Columbia/HCA Healthcare Corporation 7.25%, due 05/20/08		150,000		160,619
HCA Inc. 6.95%, due 05/01/12		300,000		316,145
Healthsouth Corporation 8.50%, due 02/01/08		650,000		559,000
Healthsouth Corporation 7.625%, due 06/01/12		700,000		577,500
Healthsouth Corporation 10.75%, due 10/01/08 (o)		750,000		633,750
Vicar Operating Inc. 9.875%, due 12/01/09		400,000		432,000
				5,279,514
Hotels & Restaurants — 12.51%
Boyd Gaming Corporation 9.50%, due 07/15/07		750,000		785,625
Boyd Gaming Corporation 7.75%, due 12/15/12 (144A)		2,100,000		2,055,375
Circus Circus Enterprises Inc. 9.25%, due 12/01/05		900,000		940,500
Felcor Lodging Limited Partnership 8.50%, due 06/01/11		600,000		591,000
Felcor Lodging Limited Partnership 9.50%, due 09/15/08 (o)		650,000		663,000
Foodmaker Corporation (Series B) 9.75%, due 11/01/03		200,000		200,000
Foodmaker Inc. 8.375%, due 04/15/08		1,925,000		1,951,469

THE ENTERPRISE Group of Funds, Inc.

93

Enterprise High-Yield Bond Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Hilton Hotels Corporation 7.625%, due 05/15/08	$	2,100,000	$	2,148,601
Hilton Hotels Corporation 7.625%, due 12/01/12		100,000		100,985
HMH Properties Inc. 7.875%, due 08/01/08		250,000		242,500
Host Marriott LP 9.50%, due 01/15/07		1,200,000		1,218,000
John Q Hammons Hotels LP 8.875%, due 05/15/12		350,000		351,750
Mandalay Resort Group 10.25%, due 08/01/07 (o)		1,100,000		1,207,250
Meristar Hospitality Operating 9.125%, due 01/15/11		1,825,000		1,587,750
MGM Grand Inc. 9.75%, due 06/01/07		1,000,000		1,105,000
MGM Mirage Inc. 8.50%, due 09/15/10		1,100,000		1,215,500
Mirage Resorts Inc. 6.75%, due 08/01/07		450,000		456,588
Park Place Entertainment Corporation  7.875%, due 03/15/10 (o)		850,000		864,875
Park Place Entertainment Corporation  8.125%, due 05/15/11 (o)		1,600,000		1,660,000
Starwood Hotels & Resorts     7.875%, due 05/01/12 (144A)		1,900,000		1,881,000
Station Casinos Inc. 9.875%, due 07/01/10		500,000		542,500
Station Casinos Inc. 8.875%, due 12/01/08 (o)		650,000		676,000
Yum Brands Inc 7.70%, due 07/01/12		750,000		780,000
				23,225,268
Machinery — 2.80%
Briggs & Stratton Corporation 8.875%, due 03/15/11		2,100,000		2,262,750
Flowserve Corporation 12.25%, due 08/15/10 (o)		1,225,000		1,335,250
Navistar International Corporation 8.00%, due 02/01/08 (Series B) (o)		400,000		324,000
Teekay Shipping Corporation 8.875%, due 07/15/11		1,250,000		1,282,812
				5,204,812
Manufacturing — 1.07%
SPX Corporation 7.50%, due 01/01/13		650,000		658,938
United States Steel Corporation 10.75%, due 08/01/08		1,350,000		1,329,750
				1,988,688

	Number of Shares or Principal Amount		Value
Media — 2.40%
AOL Time Warner Inc. 5.625%, due 05/01/05	$	1,000,000	$	1,022,587
AOL Time Warner Inc. 6.875%, due 05/01/12		1,600,000		1,689,766
Corus Entertainment Inc. 8.75%, due 03/01/12		1,650,000		1,746,938
				4,459,291
Medical Instruments — 1.20%
Charles River Labs Inc. (Wts) (a)		350		88,658
Fisher Scientific International Inc. 9.00%, due 02/01/08	$	1,050,000		1,094,625
Fisher Scientific International Inc. 8.125%, due 05/01/12 (o)		1,000,000		1,035,000
				2,218,283
Medical Services — 2.19%
AmerisourceBergen Corporation 8.125%, due 09/01/08		650,000		692,250
AmerisourceBergen Corporation     7.25%, due 11/15/12 (144A)		300,000		307,500
NDChealth Corporation 10.50%, due 12/01/12 (144A)		1,550,000		1,550,000
Triad Hospitals Holdings Inc. 11.00%, due 05/15/09		450,000		497,250
Triad Hospitals Inc. 8.75%, due 05/01/09		150,000		160,688
Warner Chilcott Inc. 12.625%, due 02/15/08		750,000		859,687
				4,067,375
Metals & Mining — 2.29%
AK Steel Corporation 7.875%, due 02/15/09		700,000		707,000
Alaska Steel Corporation 7.75%, due 06/15/12 (144A)		500,000		503,750
Dresser Inc. 9.375%, due 04/15/11		1,100,000		1,105,500
Panhandle Eastern Pipe Line Company 7.875%, due 08/15/04		500,000		509,012
Steel Dynamics Inc. 9.50%, due 03/15/09		600,000		628,500
Williams Companies Inc. 7.125%, due 09/01/11 (o)		1,225,000		802,375
				4,256,137
Misc. Financial Services — 1.72%
Ford Motor Credit Company 6.50%, due 01/25/07		600,000		592,631
Ford Motor Credit Company 7.25%, due 10/25/11		650,000		631,590
Pemex Project Funding Master Trust     9.125%, due 10/13/10		1,400,000		1,603,000
Ucar Finance Inc. 10.25%, due 02/15/12		450,000		357,750
				3,184,971

THE ENTERPRISE Group of Funds, Inc.

94

Enterprise High-Yield Bond Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Oil Services — 4.21%
Chesapeake Energy Corporation 8.375%, due 11/01/08	$	500,000	$	517,500
Chesapeake Energy Corporation 8.125%, due 04/01/11		1,100,000		1,133,000
Grant Prideco Inc. 9.625%, due 12/01/07		500,000		530,000
Grant Prideco Inc. 9.00%, due 12/15/09 (144A)		200,000		208,000
Key Energy Services Inc. 8.375%, due 03/01/08		750,000		783,750
Nuevo Energy Company 9.50%, due 06/01/08 (o)		900,000		927,000
Pioneer Natural Resources Company 9.625%, due 04/01/10		2,900,000		3,449,988
Westport Resources Corporation 8.25%, due 11/01/11 (144A)		250,000		262,500
				7,811,738
Paper & Forest Products — 1.48%
Buckeye Technologies Inc. 8.00%, due 10/15/10		130,000		104,975
Georgia Pacific Corporation 8.125%, due 05/15/11 (o)		1,500,000		1,425,000
Georgia Pacific Corporation 9.50%, due 12/01/11 (o)		1,250,000		1,225,000
				2,754,975
Pharmaceuticals — 1.67%
AdvancePCS 8.50%, due 04/01/08		1,450,000		1,508,000
Biovail Corporation 7.875%, due 04/01/10		1,600,000		1,600,000
				3,108,000
Printing & Publishing — 1.51%
Dex Media East Llc 12.125%, due 11/15/12 (144A)		1,500,000		1,661,250
Nebraska Book Company Inc. 8.75%, due 02/15/08		250,000		245,000
Primedia Inc. 8.875%, due 05/15/11 (o)		1,000,000		905,000
				2,811,250
Retail — 7.77%
Amerigas Partners LP / Amerigas Eagle Finance Corporation 8.875%, due 05/20/11		1,250,000		1,300,000
Buhrmann U.S. Inc. 12.25%, due 11/01/09 (o)		550,000		511,500
Cole National Group Inc. 8.625%, due 08/15/07		1,695,000		1,601,775
Ferrell Gas Partner LP 8.75%, due 06/15/12		600,000		621,000
Gap Inc. 10.55%, due 12/15/08 (o)		2,050,000		2,234,500
K Mart Corporation 9.875%, due 06/15/08 (144A) (b)		800,000		116,000

	Number of Shares or Principal Amount		Value
Michaels Stores Inc. 9.25%, due 07/01/09	$	1,900,000	$	2,004,500
Penney (JC) Company Inc 8.25%, due 08/15/22		1,700,000		1,445,000
Penney (JC) Company Inc. 7.65%, due 08/15/16 (o)		1,000,000		880,000
Penney (JC) Company Inc. 7.95%, due 04/01/17		500,000		450,000
Petco Animal Supplies Inc. 10.75%, due 11/01/11		1,550,000		1,706,937
Saks Inc. 7.50%, due 12/01/10		350,000		330,750
Saks Inc. 8.25%, due 11/15/08 (o)		500,000		497,500
Sears Roebuck Acceptance Corporation 7.00%, due 02/01/11		750,000		723,655
				14,423,117
Semiconductors — 0.48%
Amkor Technology Inc. 9.25%, due 05/01/06		1,050,000		897,750
Telecommunications — 5.04%
Block Communications Inc. 9.25%, due 04/15/09		900,000		929,250
Crown Castle International Corporation 10.625%, due 11/15/07	$	1,050,000		945,000
E. Spire Communications Inc. (Wts) (a) (d) (m) (144A)		800		—
Global Crossings Holdings Ltd. 9.625%, due 05/15/08 (b)	$	850,000		25,500
Intermedia Communications Inc. (Series B) 11.25%, due 07/15/07 (b) (o)		150,000		60,000
Intermedia Communications Inc. (Series B) 8.50%, due 01/15/08 (b) (o)		300,000		120,000
Level 3 Communications Inc. 6.00%, due 03/15/10		750,000		309,375
Nextel Communications 10.65%, due 09/15/07		1,350,000		1,289,250
Nextel Communications 9.75%, due 10/31/07		350,000		323,750
Nextlink Communications 10.75%, due 11/15/08 (b)		250,000		313
Nextlink Communications     0%/9.45%, due 04/15/08 (b) (c) (o)		850,000		1,062
Panamsat Corporation 8.50%, due 02/01/12 (144A)		1,975,000		1,886,125
Pathnet Inc. 12.25%, due 04/15/08 (b)	$	250,000		625
Pathnet Inc. (Wts) (a) (d) (m) (144A)		250		—
Qwest Corporation 8.875%, due 03/15/12 (144A)	$	1,050,000		1,018,500
Qwest Services Corporation 13.50%, due 12/15/10 (144A)		476,000		495,040

THE ENTERPRISE Group of Funds, Inc.

95

Enterprise High-Yield Bond Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Sprint Capital Corporation 8.375%, due 03/15/12	$	1,300,000	$	1,293,500
Telecorp PCS Inc. 10.625%, due 07/15/10		472,000		507,400
Worldcom Inc. 7.50%, due 05/15/11 (b)		600,000		141,000
				9,345,690
Textiles — 1.73%
Interface Inc. 9.50%, due 11/15/05		375,000		337,500
Interface Inc. 10.375%, due 02/01/10 (o)		1,150,000		1,115,500
Phillips Van Heusen Corporation 9.50%, due 05/01/08 (o)		1,750,000		1,754,375
				3,207,375
Utilities — 0.91%
AES Corporation 9.50%, due 06/01/09		475,000		290,938
AES Corporation 9.375%, due 09/15/10 (o)		250,000		150,000
AES Corporation 8.875%, due 02/15/11 (o)		600,000		348,000
Constellation Brands Inc. 8.125%, due 01/15/12		450,000		465,750
Mirant Americas Generation LLC 8.30%, due 05/01/11 (o)		900,000		427,500
				1,682,188
Waste Management — 2.14%
Allied Waste North America Inc. (Series B)     7.375%, due 01/01/04		200,000		200,000
Allied Waste North America Inc. 7.625%, due 01/01/06		900,000		895,500
Allied Waste North America Inc. 8.875%, due 04/01/08		700,000		710,500
Allied Waste North America Inc. 7.875%, due 01/01/09		850,000		837,250
Allied Waste North America Inc. 10.00%, due 08/01/09 (o)		900,000		893,250
Waste Management Inc. 7.375%, due 08/01/10		400,000		437,656
				3,974,156
Wireless Communications — 1.24%
AT&T Wireless 8.125%, due 05/01/12	$	1,550,000		1,557,750
Leap Wireless International Inc. (Wts) (a) (d) (m) (144A)		5,000		—
Voicestream Wireless Corporation 11.50%, due 09/15/09	$	500,000		522,500
Voicestream Wireless Corporation 10.375%, due 11/15/09		206,647		216,979
				2,297,229
Total Domestic Corporate Bonds
(Identified cost $165,094,497)				158,746,185

	Number of Shares or Principal Amount		Value
Convertible Corporate Bonds — 0.79%
Wireless Communications — 0.79%
Nextel Communications 5.25%, due 01/15/10 (o)	$	2,050,000	$	1,470,875
Total Convertible Corporate Bonds
(Identified cost $1,334,001)				1,470,875
Domestic Common and Preferred Stocks — 0.28%
Chemicals — 0.01%
Pioneer Companies Inc. (a)		16,408		20,510
Electronics — 0.00%
Axiohm Transaction Solutions (a) (d) (m)		4,056		—
Health Care — 0.20%
Dade Behring Holdings Inc. (a)		23,333		363,995
Telecommunications — 0.07%
Flag Telecom Group (a) (o)		1,460		10,220
Wiltel Communications Group (a) (o)		7,585		119,767
				129,987
Total Domestic Common and Preferred Stocks
(Identified cost $2,445,389)				514,492
Foreign Bonds — 5.32%
Broadcasting — 2.07%
Grupo Televisa 8.00%, due 09/13/11 (o)	$	2,500,000		2,606,250
Rogers Communications Inc. 9.125%, due 01/15/06		800,000		769,000
Satelites Mexicanos 10.125%, due 11/01/04		1,200,000		459,000
				3,834,250
Energy — 0.12%
YPF Sociedad Anonima 9.125%, due 02/24/09 (o)		250,000		222,500
Finance — 0.24%
PDVSA Finance Ltd. 9.375%, due 11/15/07		500,000		450,000
Government Bond — 0.87%
United Mexican States 9.875%, due 01/15/07		250,000		297,834
United Mexican States 9.875%, due 02/01/10		800,000		973,485
United Mexican States 8.625%, due 03/12/08 (o)		300,000		344,700
				1,616,019

THE ENTERPRISE Group of Funds, Inc.

96

Enterprise High-Yield Bond Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Oil Services — 0.62%
Petroleos Mexicano 9.375%, due 12/02/08	$	350,000	$	404,250
Petroleos Mexicano 9.375%, due 12/02/08 (o)		650,000		750,750
				1,155,000
Telecommunications — 0.64%
Rogers Cantel Inc. 8.80%, due 10/01/07 (o)		1,000,000		840,000
Telewest Communications 0%/9.25%, due 04/15/09 (c)		1,750,000		245,000
Telewest Communications 9.875%, due 02/01/10 (k) (o)		350,000		63,000
Telewest 11.00%, due 10/01/07 (b) (o)	$	250,000		45,000
				1,193,000
Transportation — 0.20%
TBS Shipping International Ltd. (Wts) (a) (d) (m)		2,807		—
TBS Shipping International Ltd. (Wts) (a) (d) (m)		3,311		—
TBS Shipping International Ltd. (Common Stock) (Class C) (a) (d) (m)		6,818		—
TBS Shipping International Ltd. 10.00%, due 02/08/08 (d) (m)	$	295,057		85,567
TBS Shipping International Ltd. (Preferred Stock) (a) (d) (m)		7,561		—
TBS Shipping International Ltd. (Wts) (a) (d) (m)		12,063		—
TFM 10.25%, due 06/15/07	$	300,000		281,250
				366,817
Wireless Communications — 0.56%
Grupo Iusacell 14.25%, due 12/01/06		1,350,000		418,500
Rogers Wireless Inc. 9.625%, due 05/01/11		650,000		614,250
				1,032,750
Total Foreign Bonds
(Identified cost $13,580,088)				9,870,336
U.S. Treasury Notes — 0.35%
4.625%, due 05/15/06		500,000		539,258
4.375%, due 05/15/07		100,000		107,382
Total U.S. Treasury Notes
(Identified cost $613,641)				646,640

	Number of Shares or Principal Amount		Value
Repurchase Agreement — 4.53%
State Street Bank & Trust Repurchase Agreement 0.95%, due 01/02/03 Proceeds $8,410,444 Collateral: GNMA $8,410,000, 7.00% due 04/20/32, Value $8,628,894	$	8,410,000	$	8,410,000
Total Repurchase Agreement
(Identified cost $8,410,000)				8,410,000
Total Investments
(Identified cost $191,477,616)			$	179,658,528
Other Assets Less Liabilities — 3.21%				5,960,226
Net Assets — 100%			$	185,618,754

(a) Non-income producing security.

(b) Security is in bankruptcy and/or is in default of interest payment. Fund has ceased accrual of interest.

(c) Step Bond — The interest rate on a step bond represents the rate of interest that will commence its accrual on a predetermined date.

(d) Security is fair valued at December 31, 2002.

(k) Since December 31, 2002, the security is in bankruptcy and/or is in default of interest payment. Fund has since ceased accrual of interest.

(m) Illiquid security.

(o) Security, or portion thereof, out on loan at December 31, 2002.

(v) Variable interest rate security; interest rate is as of December 31, 2002.

(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.

(144A) The security may only be offered and sold to “qualified institutional buyers” under Rule 144A of the Securities Act of 1933.

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

97

Enterprise Short Duration Bond Fund

SUBADVISER’S COMMENTS

MONY Capital Management, Inc.

New York, New York

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

MONY Capital Management, Inc. (“MONY Capital”), has been subadviser of the Enterprise Short Duration Bond Fund since inception, November 29, 2002. MONY Capital manages approximately $12 billion for institutional clients, and its normal investment minimum is $10 million.

Investment Objective

The objective of the Enterprise Short Duration Bond Fund is to seek current income and safety of principal.

2002 Performance Review

For the month of December, Class A shares of the Fund returned 0.34 percent. The Fund underperformed its benchmark, the Lehman Brothers 1-3 Year Government/Credit Index, which returned 1.08 percent. The Fund underperformed its peer group, the Lipper Short Investment Grade Fund Index, which returned 1.00 percent.

Cumulative Total Returns - Periods ending December 31, 2002

Class A	11/30/02-12/31/02
With Sales Charge	-3.15%
Without Sales Charge	0.34%
Lehman Brothers 1-3 Year Gov’t/Credit Index*	1.08%
Lipper Short Investment Grade Fund Index*	1.00%

Class C	11/30/02-12/31/02
With Sales Charge	-1.74%
Without Sales Charge	0.24%
Lehman Brothers 1-3 Year Gov’t/Credit Index*	1.08%
Lipper Short Investment Grade Fund Index*	1.00%

Class B	11/30/02-12/31/02
With Sales Charge	-4.77%
Without Sales Charge	0.23%
Lehman Brothers 1-3 Year Gov’t/Credit Index*	1.08%
Lipper Short Investment Grade Fund Index*	1.00%

Class Y	11/30/02-12/31/02
Cumulative Return	0.34%
Lehman Brothers 1-3 Year Gov’t/Credit Index*	1.08%
Lipper Short Investment Grade Fund Index*	1.00%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

*The Lehman Brothers 1-3 Year Gov’t/Credit Index is a subset of the Lehman Brothers Government/Credit Index. It includes all government and investment-grade corporate bonds with maturities from one to three years. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper Short Investment Grade Fund Index is an unmanaged index of the 30 largest funds, based on total year-end net asset value, in the Lipper Short Investment Grade Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

98

Enterprise Short Duration Bond Fund — (Continued)

SUBADVISER’S COMMENTS

The Fund commenced operations on November 29, 2002. In the initial month of operation, MONY Capital’s focus was bringing the Fund up to a fully invested position. Reflecting this start-up position, returns for the month lagged the benchmark.

To date, MONY Capital’s focus has been in several sectors. In the asset-backed arena, the Fund is invested in securities of the most senior, top-rated credit tranches of bonds backed by home mortgages; their floating-rate coupon should insulate against interest-rate movement, but they also provide an additional layer of incremental yield that easily compensates for their nominal credit risk. On the fixed-rate side, the Fund is invested in several short-maturity corporate issuers priced attractively given underlying fundamentals.

There are specific risks associated with the types of bonds held in the 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.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

99

Enterprise Short Duration Bond Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Domestic Corporate Bonds — 23.90%
Finance — 9.46%
Ford Motor Credit Company 6.70%, due 07/16/04	$	250,000	$	254,707
General Motors Acceptance Corporation 6.85%, due 06/17/04		250,000		260,357
Household Finance Corporation 5.875%, due 09/25/04		200,000		207,125
				722,189
Forest Products — 3.43%
Weyerhaeuser Company 5.50%, due 03/15/05		250,000		261,705
Media — 6.91%
AOL Time Warner Inc. 5.625%, due 05/01/05		250,000		255,647
Walt Disney Company 7.30%, due 02/08/05		250,000		272,136
				527,783
Misc. Financial Services — 4.10%
CIT Group Holdings Inc. 6.625%, due 06/15/05		300,000		313,136
Total Domestic Corporate Bonds
(Identified cost $1,822,689)				1,824,813
Domestic Asset-Backed Securities — 20.06%
Banking — 6.55%
Countrywide Home Loans Inc., Series 2001-1, Class MV2 2.37%, due 07/25/31 (v)		250,000		249,430
Provident Bank Home Equity Loan Trust, Series 1996-2, Class A2 1.66%, due 01/25/28 (v)		251,743		251,021
				500,451
Misc. Financial Services — 13.50%
Credit Suisse First Boston Mortgage, Series 2002-5, Class A3 1.94%, due 05/25/33 (v)		250,000		250,782
Green Tree Financial Corporation, Series 1997-1, Class A5 6.86%, due 03/15/28		285,323		294,812
Lehman Manufactured Housing, Series 2001-B, Class A3 4.35%, due 05/15/14		235,000		236,733
Structured Asset Securities Corporation, Series 2002-BC10, Class A3 1.85%, due 01/25/33 (v)		250,000		248,828
				1,031,155
Total Domestic Asset-Backed Securities
(Identified cost $1,523,485)				1,531,606

	Number of Shares or Principal Amount		Value
Foreign Asset Backed Securities — 3.27%
Misc. Financial Services — 3.27%
Fusion Capital Ltd., Series 1A, Class Note     2.16%, due 09/19/12 (v) (144A)	$	250,000	$	250,000
Total Foreign Asset Backed Securities
(Identified cost $250,000)				250,000
Collateralized Mortgage Obligations — 4.54%
Sequoia Mortgage Trust, Series 6, Class A 1.74%, due 04/19/27 (v)		348,867		346,844
Total Collateralized Mortgage Obligations
(Identified cost $346,251)				346,844
Agency Obligations — 40.96%
Fannie Mae — 14.19%
5.50%, due 05/02/06		1,000,000		1,083,526
Federal Home Loan Banks — 13.11%
1.72%, due 01/02/04		1,000,000		1,000,704
Freddie Mac — 13.66%
6.00%, due 07/15/28		1,000,000		1,042,871
Total Agency Obligations
(Identified cost $3,124,697)				3,127,101
Repurchase Agreement — 3.63%
State Street Bank & Trust Repurchase Agreement 0.95%, due 01/02/03 Proceeds $277,015 Collateral: US Treasury Bond $190,000, 8.75% due 08/15/20, Value $294,961		277,000		277,000
Total Repurchase Agreement
(Identified cost $277,000)				277,000
Total Investments
(Identified cost $7,344,122)			$	7,357,364
Other Assets Less Liabilities — 3.64 %				278,141
Net Assets — 100%			$	7,635,505

(v) Variable interest rate security; interest rate is as of December 31, 2002.

(144A) The security may only be offered and sold to “qualified institutional buyers” under Rule 144A of the Securities Act of 1933.

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

100

Enterprise Tax-Exempt Income Fund

SUBADVISER’S COMMENTS

MBIA Capital Management Corp.

Armonk, New York

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

MBIA Capital Management Corp. (“MBIA”) became the subadviser to the Enterprise Tax-Exempt Income Fund on January 1, 1998. MBIA manages approximately $36.8 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.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned 9.09 percent. The Fund underperformed its benchmark, the Lehman Brothers Municipal Bond Index, which returned 9.60 percent. By comparison, the Fund outperformed its peer group, the Lipper General Muni Debt Fund Index, which returned 8.63 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year	5-Year	10-Year
With Sales Charge	3.93%	4.06%	4.95%
Without Sales Charge	9.09%	5.09%	5.47%
Lehman Brothers Municipal Bond Index*	9.60%	6.06%	6.71%
Lipper General Muni Debt Fund Index*	8.63%	4.96%	5.99%

Class C	1-Year	5-Year	05/01/97-12/31/02
With Sales Charge	6.38%	4.30%	4.86%
Without Sales Charge	8.49%	4.51%	5.05%
Lehman Brothers Municipal Bond Index*	9.60%	6.06%	6.86%
Lipper General Muni Debt Fund Index*	8.63%	4.96%	5.94%

Class B	1-Year	5-Year	05/01/95-12/31/02
With Sales Charge	3.49%	4.19%	5.10%
Without Sales Charge	8.49%	4.53%	5.10%
Lehman Brothers Municipal Bond Index*	9.60%	6.06%	6.98%
Lipper General Muni Debt Fund Index*	8.63%	4.96%	6.15%

Class Y	1-Year	11/30/98-12/31/02
Average Annual Return	9.66%	5.30%
Lehman Brothers Municipal Bond Index*	9.60%	5.89%
Lipper General Muni Debt Fund Index*	8.63%	4.73%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

*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 pre-refunded. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper General Muni Debt Fund Index is an unmanaged index of the 30 largest funds, based on year-end net asset value, in the Lipper General Municipal Debt Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

101

Enterprise Tax-Exempt Income Fund — (Continued)

SUBADVISER’S COMMENTS

Interest rates fell 0.50 to 1.50 percent across the yield curve during the year. In 2002 the higher quality sectors of the investment grade market outperformed. Education, water/sewer and transportation were the strongest performing revenue sectors, while the 12-17 year part of the yield curve outperformed the general market. The Fund outperformed the Lipper General Muni Debt Fund Index for 2002. The Fund’s outperformance was due to its high, Aa1, average credit quality and its over-weight to the outperforming education and water/sewer sectors, as well as our over-weight to the intermediate sector of the yield curve. The Fund’s over-weight to outperforming states like Illinois, Washington, Michigan and Nevada also buoyed the Fund’s performance.

During the year, the Fund’s duration lengthened relative to the Lehman Brothers Municipal Bond Index. The strategy for 2002 was to better balance the Fund along the yield curve to better mirror the Lehman Brothers Municipal Bond Index, while at the same time taking advantage of the steepness of the curve by over-weighting the 7-20 year part of the curve. This over-weighting helped the Fund’s performance versus the Index as the 7-20 year range collectively outperformed the overall market for 2002.

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.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

102

Enterprise Tax-Exempt Income Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Principal Amount		Value
Municipal Bonds — 98.07%
Alabama — 4.85%
Alabama Housing Finance Authority Single Family Mortgage Revenue Series A-1 6.55% due 10/01/14	$	210,000	$	217,915
Jefferson County Alabama Sewer Revenue Capital Improvement Series A (FGIC Insured) 5.00% due 02/01/33		500,000		500,675
Mobile Alabama Water & Sewer (FGIC Insured) 5.25% due 01/01/18		1,000,000		1,071,250
				1,789,840
Arizona — 6.15%
Mesa Arizona Utility Systems Revenue Refunding Series A (FGIC Insured) 5.00% due 07/01/15		1,000,000		1,103,530
Salt River Project Arizona Agricultural Improvement & Power District Electric Systems Series D 6.00% due 01/01/09		1,000,000		1,166,780
				2,270,310
California — 4.17%
California State General Obligation Bonds 5.125% due 06/01/25		500,000		500,195
University California Revenues Series K 5.25% due 09/01/24		1,000,000		1,040,990
				1,541,185
Colorado — 4.93%
Colorado Department Transport Revenue Anticipation Notes (AMBAC Insured) 6.00% due 06/15/15		1,000,000		1,191,690
Colorado Health Facilities Authority Revenue (Catholic Health Initiatives) 5.50% due 09/01/16		600,000		627,912
				1,819,602
Florida — 4.73%
Tampa Florida Water & Sewer Revenue Refunding Series A 5.25% due 10/01/19		1,625,000		1,747,298
Georgia — 1.51%
Georgia Municipal Electric Authority Power Revenue General Series A (FSA Insured)     5.25% due 01/01/13		500,000		559,155

	Principal Amount		Value
Illinois — 7.86%
Chicago Illinois Skyway Toll Bridge (AMBAC Insured) 5.50% due 01/01/31	$	1,000,000	$	1,053,480
Cook County Illinois Series A (FGIC Insured) 5.125% due 11/15/26		1,000,000		1,022,230
Metropolitan Pier & Exposition Illinois McCormick Place Exploration Project (FGIC Insured) 5.25% due 12/15/28		800,000		827,840
				2,903,550
Indiana — 2.95%
Indiana Board Bank Common School Fund Advanced Purchase Funding (AMBAC Insured) 5.00% due 02/01/06		1,000,000		1,090,430
Louisiana — 3.00%
Jefferson Parish Louisiana Drainage Sales Refunding (AMBAC Insured) 5.00% due 11/01/10		1,000,000		1,108,480
Massachusetts — 2.07%
Massachusetts State Housing Finance Agency Revenue Residential FNMA Collateral Series A 6.90% due 11/15/24		750,000		763,755
Michigan — 6.89%
Grand Rapids & Kent County Michigan Joint Building Authority 5.25% due 12/01/11		500,000		564,160
Michigan Municipal Bond Authority Revenue Clean Water Revolving Fund 5.50% due 10/01/08		700,000		802,676
Michigan Municipal Bond Authority Revenue Clean Water Revolving Fund 5.75% due 10/01/16		1,000,000		1,176,070
				2,542,906
Missouri — 3.12%
Missouri State Health & Educational Facilities Authority St. Louis University 5.50% due 10/01/15		1,000,000		1,150,480
Nevada — 6.54%
Clark County Nevada School District Refunding (FSA Insured) 5.50% due 06/15/13		1,300,000		1,486,160
Clark County School District Series A (MBIA Insured)     7.00% due 06/01/11		750,000		928,215
				2,414,375

THE ENTERPRISE Group of Funds, Inc.

103

Enterprise Tax-Exempt Income Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Principal Amount		Value
New York — 6.61%
New York City Transitional Financial Services Future Tax Secured Series C 5.875% due 11/01/14	$	400,000	$	458,428
New York State Dormitory Authority Series A (FGIC Insured) 5.25% due 07/01/30		1,000,000		1,033,750
Triborough Bridge & Tunnel Authority, New York General Purpose Series A 6.00% due 01/01/10		800,000		947,480
				2,439,658
Ohio — 7.91%
Cincinnati Ohio Water Systems Revenue 5.00% due 12/01/05		400,000		437,344
Hamilton County Ohio Sales Tax Football Project B (MBIA Insured) 5.00% due 12/01/27		1,000,000		1,013,470
Ohio State Higher Education Capital Facilities Senior II A 5.50% due 12/01/07		1,000,000		1,140,310
Ohio State Higher Education Capital Facilities Series II A 5.50% due 12/01/10		285,000		327,724
				2,918,848
Pennsylvania — 1.44%
Erie Pennsylvania Series E (FGIC Insured) 5.125% due 11/15/17		500,000		532,885
Puerto Rico — 1.50%
Puerto Rico Electric Power Authority Power Revenue Refunding (MBIA Insured) 5.00% due 07/01/17		500,000		552,200
South Carolina — 3.68%
South Carolina State Public Service Authority Series A (MBIA Insured) 5.75% due 01/01/15		1,200,000		1,359,600
Tennessee — 4.81%
Dickson County Tennessee Refunding (FGIC Insured) 5.00% due 03/01/17		600,000		645,396
Metro Government Nashville & Davidson Refunding Series A & B 5.25% due 10/15/09		1,000,000		1,132,440
				1,777,836
Texas — 3.03%
Harris County Texas Health Facilities Development Series A (MBIA Insured) 5.75% due 07/01/14		1,000,000		1,117,130

	Principal Amount		Value
Virginia — 0.70%
Virginia Commonwealth Transportation Board Federal Highway Reimbursement     5.50% due 10/01/06	$	230,000	$	258,568
Washington — 7.27%
Washington State Series B (FSA Insured) 5.00% due 01/01/27		1,000,000		1,007,390
Washington State General Obligation Bonds Series B & AT-7 6.40% due 06/01/17		500,000		621,685
Washington State Public Power Supply Systems Nuclear Project Number 1 Revenue Refunding Series A 5.50% due 07/01/04		1,000,000		1,056,740
				2,685,815
Wisconsin — 2.35%
Milwaukee Wisconsin Series F 6.00% due 11/15/04		800,000		867,568
Total Municipal Bonds
(Identified Cost $33,894,997)				36,211,474
Short-Term Tax-Exempt Investments — 0.47%
Michigan — 0.07%
University Michigan University Revenues 1.50% due 01/02/03 (v)		25,000		25,000
New York — 0.40%
New York City Municipal Water Finance Authority Systems Revenue Series C (FGIC Insured) 0.85% due 01/02/03 (v)		50,000		50,000
New York New York Series B (AMBAC Insured) 1.00% due 01/02/03 (v)		100,000		100,000
				150,000
Total Short-Term Tax-Exempt Investments
(Identified Cost $175,000)				175,000
Total Investments
(Identified cost $34,069,997)			$	36,386,474
Other Assets Less Liabilities — 1.46%				538,777
Net Assets — 100%			$	36,925,251

(v) Variable interest rate security; interest rate is as of December 31, 2002, and is adjusted daily. Maturity date shown is the next interest reset date.

(AMBAC) American Bond Assurance Corporation.

(FGIC) Financial Guaranty Insurance Corporation.

(FSA) Financial Security Assurance.

(MBIA) Municipal Bond Insurance Association.

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

104

Enterprise Total Return Fund

SUBADVISER’S COMMENTS

Pacific Investment Management Company, LLC

Newport Beach, California

Investment Management

Enterprise Capital Management, Inc. is the registered investment adviser for The Enterprise Group of Funds, Inc.

Founded in 1971, Pacific Investment Management Company (“PIMCO”) has grown to become a worldwide leader in fixed income money management. PIMCO is headquartered in Newport Beach, Calif. with offices in Munich, London, Tokyo, Sydney and Singapore. The firm has approximately $304 billion in assets under management, and its normal investment minimum is $75 million.

Investment Objective

The objective of the Enterprise Total Return Fund is capital appreciation.

2002 Performance Review

For the year ended December 31, 2002, Class A shares of the Fund returned 7.56 percent. The Fund underperformed its benchmark, the Lehman Brothers Universal Index, which returned 9.83 percent. By comparison, the Fund outperformed its peer group, the Lipper BBB Rated Fund Index, which returned 7.20 percent.

Average Annual Total Returns - Periods ending December 31, 2002

Class A	1-Year		08/31/01-12/31/02
With Sales Charge	2.46	%	3.48	%
Without Sales Charge	7.56	%	7.34	%
Lehman Brothers Universal Index*	9.83	%	8.04	%
Lipper BBB Rated Fund Index*	7.20	%	5.33	%

Class C	1-Year		08/31/01-12/31/02
With Sales Charge	5.02	%	5.95	%
Without Sales Charge	7.07	%	6.75	%
Lehman Brothers Universal Index*	9.83	%	8.04	%
Lipper BBB Rated Fund Index*	7.20	%	5.33	%

Class B	1-Year		08/31/01-12/31/02
With Sales Charge	2.09	%	3.81	%
Without Sales Charge	7.09	%	6.76	%
Lehman Brothers Universal Index*	9.83	%	8.04	%
Lipper BBB Rated Fund Index*	7.20	%	5.33	%

Class Y	1-Year		08/31/01-12/31/02
Average Annual Return	8.16	%	7.83	%
Lehman Brothers Universal Index*	9.83	%	8.04	%
Lipper BBB Rated Fund Index*	7.20	%	5.33	%

The performance of Classes B, C, and Y will vary from the performance of Class A shown in the above line graph based on differences in sales charges and expenses paid by shareholders investing in different classes. Enterprise performance numbers include the applicable maximum sales charge and all fees. Past performance is no guarantee of future results. The investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

*The Lehman Brothers Universal Index consists of all the bonds in the Lehman Brothers Aggregate Bond Index plus U.S. dollar-denominated Eurobonds, 144A’s, Non-ERISA CMBS, High Yield CMBS, U.S. High Yield Corporates and Emerging Markets, but excludes tax-exempt municipal securities, CMO’s, convertible securities, perpetual notes, warrants, linked bonds, and structured products. All issues must have at least one year remaining to maturity. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper BBB Rated Fund Index is an unmanaged index of the 30 largest funds, based on year-end net asset value, in the Lipper BBB Rated Fund category. It assumes the reinvestment of dividends and capital gains and does not include any management fees or expenses. The Lipper BBB Rated Fund Index replaces the Lipper Multi Sector Fund Index as the narrow-based benchmark for the Fund as it more appropriately reflects the Fund’s narrow-based market. During 2002, an investment in the above hypothetical account for the Enterprise Total Return Fund A-Shares increased by $736 compared to an increase of $649 in the Lipper Multi Sector Fund Index and an increase of $719 in the Lipper BBB Rated Fund Index. One cannot invest directly in an index.

THE ENTERPRISE Group of Funds, Inc.

105

Enterprise Total Return Fund — (Continued)

SUBADVISER’S COMMENTS

While 2002 was a relatively difficult period for financial assets, fixed-income securities weathered the storm relatively well. Whereas the first quarter hinted at signs of a recovery, the second and third quarters were characterized by a growing loss of confidence in financial markets. Outrage over the expanding list of companies caught up in accounting scandals and corporate governance abuses cast a pall over the stock market and hurt the performance of corporate bonds, especially in the telecom and energy/utilities sectors. Efforts by companies to rehabilitate their credit quality did little to reassure corporate bond investors. Sluggish global growth and anxiety over a potential war with Iraq spawned a flight to quality. Treasury yields fell as much as 1.47 percent by the end of the third quarter, with the 10-year plunging to 3.59 percent, its lowest level in 40 years.

Investors’ risk appetites began to revive in the fourth quarter, calming the financial market turmoil that produced a flight to safe assets, especially Treasuries, in the previous two quarters. The return to normalcy came amid heightened confidence that U.S. and European policymakers would protect the global economy against the risks of deflation. The powerful Treasury rally stalled during the final quarter as investors regained interest in credit sensitive fixed-income assets as well as non-U.S. bonds. The 10-year Treasury yield ended 2002 at 3.81 percent, up 0.22 percent during the fourth quarter, though still down 1.24 percent for the full year.

For the year, the Fund modestly underperformed its benchmark, the Lehman Brothers Universal Index. A slightly above benchmark duration was positive for returns as yields dropped along the curve, while an emphasis on short/intermediate securities during much of the year helped as yields fell the most in this section of the yield curve. Mortgage holdings helped returns as market volatility declined and yield premiums relative to Treasuries narrowed, but an allocation to Non-U.S. bonds, focused on Eurozone issues, detracted from returns as rates fell further in the U.S. amid the flight to quality that occurred during most of the year. A small allocation to emerging market bonds was also negative as political uncertainty in Latin America affected the asset class.

There are specific risks associated with some of the securities held in this Fund. High-yield bonds are subject to defaults by the issuer, market valuation and interest rate sensitivity; investments in foreign securities are subject to currency fluctuations, foreign taxation, differences in accounting standards and political or economic instability; and investments in derivatives could subject the Fund to loss of principal. In addition, this Fund is expected to have a higher-than-average turnover rate, which could generate more taxable short-term gains and negatively affect performance.

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.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

106

Enterprise Total Return Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Corporate Bonds and Notes — 35.26%
Aerospace — 1.46%
Martin Marietta Corporation 6.50% due 04/15/03	$	200,000	$	202,154
Raytheon Company 7.90% due 03/01/03		800,000		805,421
				1,007,575
Airlines — 1.79%
Continental Airlines Inc. 7.056% due 09/15/09		350,000		311,150
Continental Airlines Inc. 7.918% due 05/01/10 (o)		100,000		88,841
Delta Air Lines Inc. 7.111% due 09/18/11		300,000		296,539
Delta Airlines Inc. 7.57% due 11/18/10		200,000		199,793
United Airlines Inc. 7.73% due 07/01/10		100,000		76,932
United Airlines Inc. 7.186% due 04/01/11		196,315		150,913
United Airlines Inc. 6.602% due 09/01/13		150,000		114,507
				1,238,675
Automotive — 0.51%
Daimlerchrysler North America 7.75% due 05/27/03		200,000		203,985
Daimlerchrysler North America, 1.725% due 02/18/03 (v)		150,000		148,467
				352,452
Cable — 3.26%
Clear Channel Communications 7.25% due 09/15/03 (o)		550,000		561,100
Cox Communications Inc. 6.15% due 08/01/03 (r)(v)		350,000		348,157
CSC Holdings Inc. 8.125% due 07/15/09 (o)		100,000		96,125
CSC Holdings Inc. 7.625% due 04/01/11		50,000		46,937
Tele Communications Inc. 8.25% due 01/15/03 (o)		300,000		300,088
Tele Communications Inc. 6.375% due 05/01/03		900,000		900,063
				2,252,470
Electrical Equipment — 2.52%
Cleveland Electrical Illumination Company, 7.375% due 06/01/03		400,000		404,998
Dominion Resources Inc. 6.00% due 01/31/03		500,000		500,957
Oncor Electric Delivery Company 6.375% due 01/15/15 (144A)		130,000		132,667

	Number of Shares or Principal Amount		Value
Toledo Edison Company 7.82% due 03/31/03	$	700,000	$	706,268
				1,744,890
Energy — 3.61%
Dynegy Holdings Inc. 8.75% due 02/15/12 (o)		200,000		70,000
El Paso Energy Corporation 7.75% due 01/15/32 (o)		65,000		40,300
El Paso Natural Gas Company 8.375% due 06/15/32 (144A)		300,000		223,500
Entergy Mississippi Inc. 7.75% due 02/15/03		200,000		201,087
K N Energy Inc 6.45% due 03/01/03		400,000		401,852
Limestone Electron Trust 8.625% due 03/15/03 (144A)		100,000		94,500
Midwest Generation 8.56% due 01/02/16 (o)		100,000		61,820
Niagara Mohawk Power Corporation 7.75% due 05/15/06		100,000		113,329
Progress Energy Inc 6.55% due 03/01/04		400,000		415,729
PSEG Energy Holdings Inc. 8.50% due 06/15/11		100,000		81,500
PSEG Power 6.95% due 06/01/12		200,000		203,067
South Point Energy Center 8.40% due 05/30/12 (144A)		168,053		112,595
Southern Natural Gas Company 8.00% due 03/01/32		200,000		176,000
Texas Utilities Electric Company 6.75% due 03/01/03		300,000		301,726
				2,497,005
Entertainment & Leisure — 3.11%
MGM Mirage Inc. 6.625% due 02/01/05 (o)		270,000		276,540
MGM Mirage Inc. 6.95% due 02/01/05		200,000		206,456
MGM Mirage Inc. 8.50% due 09/15/10		300,000		331,500
Station Casinos Inc. 8.375% due 02/15/08		200,000		212,500
Walt Disney Company 3.90% due 09/15/03		600,000		607,116
Walt Disney Company 5.125% due 12/15/03		500,000		512,048
				2,146,160
Finance — 0.56%
Citigroup Inc. 6.00% due 02/21/12		120,000		131,688
Credit Suisse First Boston 4.625% due 01/15/08		250,000		253,415
				385,103

THE ENTERPRISE Group of Funds, Inc.

107

Enterprise Total Return Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Food, Beverages & Tobacco — 1.75%
Reynolds R J Tobacco Holdings Inc., 7.375% due 05/15/03	$	500,000	$	506,104
RJR Nabisco Inc. 7.375% due 05/15/03 (144A)		200,000		202,578
Safeway Inc. 3.625% due 11/05/03		500,000		503,824
				1,212,506
Forest Products — 0.29%
Weyerhaeuser Company 2.535% due 03/17/03 (v)		200,000		200,152
Health Care — 1.70%
Beverly Enterprises 9.00% due 02/15/06		100,000		84,000
Columbia / HCA Healthcare Corp 6.87% due 09/15/03		500,000		510,628
Healthsouth Corporation 3.25% due 04/01/03		150,000		146,437
Healthsouth Corporation 7.625% due 06/01/12		525,000		433,125
				1,174,190
Hotels & Restaurants — 1.10%
Hilton Hotels Corporation 7.00% due 07/15/04		200,000		202,332
ITT Corporation 6.75% due 11/15/03		50,000		50,375
Park Place Entertainment Corporation, 7.95% due 08/01/03 (o)		400,000		408,596
Starwood Hotels & Resorts 7.875% due 05/01/12 (144A)		100,000		99,000
				760,303
Media — 1.37%
AOL Time Warner Inc. 6.875% due 05/01/12		300,000		316,831
AOL Time Warner Inc. 7.70% due 05/01/32		100,000		104,073
Time Warner Inc. 8.11% due 08/15/06		300,000		322,910
Turner Broadcasting System Inc. 7.40% due 02/01/04		200,000		204,907
				948,721
Medical Instruments — 0.15%
Beckman Instruments Inc. 7.10% due 03/04/03		100,000		100,593
Misc. Financial Services — 6.19%
Bear Stearns Companies Inc. 7.625% due 12/07/09		120,000		141,274
CIT Group Inc. 5.92% due 01/15/03		100,000		100,088
Ford Motor Credit Company 7.25% due 01/15/03		186,000		186,136

	Number of Shares or Principal Amount		Value
Ford Motor Credit Company 7.50% due 06/15/03	$	100,000	$	101,481
Ford Motor Credit Company 6.625% due 06/30/03 (o)		100,000		101,261
Ford Motor Credit Company 2.263% due 07/18/05 (v)		100,000		90,165
Ford Motor Credit Company 2.08% due 04/26/04 (v)		100,000		95,671
Ford Motor Credit Company 1.523% due 02/13/03 (v)		200,000		199,801
Ford Motor Credit Company 1.696% due 03/03/03 (v)		50,000		49,686
Ford Motor Credit Company 1.92% due 03/21/03 (v)		250,000		248,539
Gemstone Investor Ltd. 7.71% due 10/31/04 (144A)		100,000		76,867
General Electric Capital Corporation 5.45% due 01/15/13		650,000		675,178
General Motors Acceptance Corporation, 6.125% due 09/15/06 (o)		100,000		101,612
General Motors Acceptance Corporation 2.56% due 01/20/04 (v)		500,000		492,793
General Motors Acceptance Corporation 1.56% due 02/14/03 (v)		200,000		199,926
General Motors Acceptance Corporation 1.57% due 03/10/03 (v)		200,000		199,837
Household Finance Corporation 7.625% due 01/15/03		200,000		200,217
Household Finance Corporation 2.661% due 03/11/03 (v)		150,000		150,239
HSBC Capital Funding 10.176% due 06/30/30 (144A) (v)		150,000		210,465
Sprint Capital Corporation 5.70% due 11/15/03		100,000		99,500
Sprint Capital Corporation 7.625% due 01/30/11		200,000		190,000
Sprint Capital Corporation 6.875% due 11/15/28		350,000		281,750
Sprint Capital Corporation 8.75% due 03/15/32		90,000		85,500
				4,277,986
Oil Services — 0.41%
CMS Panhandle Holding Company 6.50% due 07/15/09		300,000		286,171
Paper & Forest Products — 0.44%
International Paper Company 8.99% due 03/21/03		300,000		304,326
Real Estate — 0.44%
EOP Operating Limited Partnership, 6.375% due 02/15/03		300,000		301,334

THE ENTERPRISE Group of Funds, Inc.

108

Enterprise Total Return Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Telecommunications — 1.45%
AT & T Corporation 3.605% due 04/18/03 (144A)		300,000		300,047
	$		$
Qwest Corporation 7.625% due 06/09/03 (o)		150,000		147,000
United States West Communications Inc., 6.875% due 09/15/33		200,000		154,000
United Telecommunications 9.50% due 04/01/03		200,000		203,532
Verizon Global Funding Corporation, 7.375% due 09/01/12 (o)		125,000		143,817
Worldcom Inc. 7.375% due 01/15/03 (144A) (b) (v)		240,000		56,400
				1,004,796
Transportation — 0.58%
Norfolk Southern Corporation 2.478% due 01/30/03 (v)		400,000		400,974
Utilities — 0.92%
National Rural Utilities 2.83% due 01/27/03 (v)		400,000		401,293
Niagara Mohawk Power Corporation (Series G), 7.75% due 10/01/08		200,000		231,056
				632,349
Waste Management — 0.96%
Allied Waste North America Inc. (Series B), 7.375% due 01/01/04		100,000		100,000
Waste Management Inc. 6.375% due 11/15/12 (144A)		250,000		257,262
WMX Technologies Inc. 7.10% due 08/01/26		300,000		304,349
				661,611
Wireless Communications — 0.69%
Cingular Wireless 6.50% due 12/15/11		120,000		129,436
Verizon Wireless Capital 1.81% due 03/17/03 (v)		350,000		347,528
				476,964
Total Corporate Bonds and Notes
(Identified cost $23,948,909)				24,367,306
Foreign Bonds — 3.96%
Banking — 0.46%
Korea Development Bank 5.25% due 11/16/06		300,000		317,796
Broadcasting — 0.19%
British Sky Broadcasting Group 8.20% due 07/15/09		120,000		129,600

	Number of Shares or Principal Amount		Value
Cable — 0.30%
Rogers Cablesystems Ltd. 10.00% due 03/15/05	$	200,000	$	206,000
Misc. Financial Services — 1.13%
Pemex Project Funding Master Trust, 9.125% due 10/13/10		210,000		240,450
Pemex Project Funding Master Trust 8.00% due 11/15/11 (144A) (o)		100,000		107,500
Pemex Project Funding Master Trust 7.375% due 12/15/14 (144A)		425,000		435,625
				783,575
Telecommunications — 1.88%
British Telecom 2.705% due 03/17/03 (v)		600,000		603,758
Deutsche Telekom International 8.50% due 06/15/10		200,000		230,347
France Telecom 10.00% due 03/01/31		300,000		365,200
France Telecom 4.16% due 03/14/03 (v)		100,000		100,041
				1,299,346
Total Foreign Bonds
(Identified cost $2,648,506)				2,736,317
Asset-Backed Securities — 2.79%
Finance — 0.27%
Merrill Lynch Mortgage Inc., Series 2002-AFC1, Class AV1, 1.79% due 01/25/03 (v)		183,944		183,845
Misc. Financial Services — 2.52%
Asset Backed Securities
Corporation, Series 2002-HE1, Class A1, 1.84% due 01/15/03 (v)		183,877		184,236
Bear Stearns Arm Trust, Series 2001-3, Class A2, 1.82% due 01/25/03 (v)		191,939		191,844
Bear Stearns Home Loan Owner Trust, Series 2001-A, Class AI1, 1.60% due 01/15/03		91,759		91,763
Chase Funding Loan Acquisition Trust, Series 2001-FF1, Class A2, 1.66% due 01/25/03 (v)		343,501		342,882
First Alliance Mortgage Trust, Series 1999-4, Class A2, 1.80% due 01/20/03 (v)		51,361		51,286
General Motors Acceptance Corporation, 1.81% due 01/23/03 (v)		69,868		69,818

THE ENTERPRISE Group of Funds, Inc.

109

Enterprise Total Return Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Structured Asset Securities Corporation, Series 2002-BC3M, Class A, 1.69% due 06/25/32 (v)	$	449,286	$	447,601
Structured Asset Securities Corporation, Series 2002-BC4, Class A, 1.67% due 07/25/32 (v)		368,116		366,790
				1,746,220
Total Asset-Backed Securities
(Identified cost $2,581,525)				1,930,065
Mortgage-Backed Securities — 9.90%
Banking — 1.13%
Countrywide Home Loans Inc. Pass Through Certificates, Series 1999-3, Class A1, 6.05% due 04/25/29		5,219		5,211
CWMBS Inc., Series 2002-HYB2, Class-6A1, 5.006% due 09/19/32 (v)		510,450		516,857
Wells Fargo Mortgage Backed Securities, Series 2002-E, Class 2A1, 5.207% due 09/25/32 (v)		251,072		259,145
				781,213
Finance — 2.25%
Credit Suisse First Boston Mortgage, Series 1999-1, Class A1, 6.75% due 01/15/08		74,421		75,008
Credit Suisse First Boston Mortgage, Series 1999-WM1, Class 3A2, 6.398% due 10/19/39 (v)		639,737		645,913
Credit Suisse First Boston Mortgage, Series 2002-AR2, Class 2A1, 1.82% due 02/25/32 (v)		298,955		298,913
Credit Suisse First Boston Mortgage, Series 2002-P3, Class A, 2.361% due 08/25/33 (144A) (v)		541,195		539,842
				1,559,676
Misc. Financial Services — 6.52%
Bear Stearns Arm Trust, Series 2001-10, Class IA, 6.122% due 01/25/32 (v)		177,153		180,263
Bear Stearns Arm Trust, Series 2001-10, Class VA, 6.143% due 02/25/32 (v)		102,060		103,862
Bear Stearns Arm Trust, Series 2001-9, Class IA, 6.213% due 02/25/32 (v)		158,644		159,939
Bear Stearns Arm Trust, Series 2002-2, Class IIIA, 6.849% due 06/25/31 (v)		85,131		88,662
C Bass Trust, Series 2002-CB1, Class A2A, 1.76% due 01/25/03 (v)		76,808		76,797

	Number of Shares or Principal Amount		Value
Chase Mortgage Finance Trust, Series 2001-S1, Class A2, 7.25% due 02/25/31	$	14,959	$	14,925
First Horizon Asset Securities, Series 2000-H, Class 1A, 7.00% due 09/25/30		62,044		63,128
Impac CMB Trust, Series 2001-4, Class A, 1.84% due 12/25/31 (v)		155,849		155,879
Impac Secured Assets Common Owner Trust, Series 2001-7, Class AI1, 1.64% due 08/25/16 (v)		30,323		30,327
PNC Mortgage Securities Corporation, Series 1999-5, Class 1A7, 6.30% due 07/25/29		1,000,000		1,011,600
Sequoia Mortgage Trust, Series 10, Class 2A1, 1.80% due 10/20/27 (v)		494,327		489,483
Structured Asset Securities Corporation, Series 2001-12, Class 3A1, 6.35% due 09/25/31		605,366		615,155
Structured Asset Securities Corporation, Series 2001-21A, Class 1A1, 6.25% due 01/25/32		195,901		201,869
Structured Asset Securities Corporation, Series 2001-3A, Class 1A1, 1.90% due 03/25/31 (v)		51,207		51,415
Structured Asset Securities Corporation, Series 2002-HF1, Class A, 1.71% due 01/25/33 (v)		246,935		245,921
Vanderbilt Acquisition Loan Trust, Series 2002-1, Class A1, 3.28% due 01/07/13		316,261		315,717
Washington Mutual Mortgage Loan Trust, Series 2000-3, Class A, 3.681% due 12/25/40 (v)		690,409		699,312
				4,504,254
Total Mortgage-Backed Securities
(Identified cost $6,847,250)				6,845,143
U.S. Government Obligations — 29.45%
Fannie Mae — 1.97%
4.097% due 03/01/33 (v)		669,489		686,438
Discount Notes 1.19% due 02/12/03 (p) (s)		370,000		369,486
Remic 6.00% due 09/25/11		300,000		305,490
				1,361,414
Freddie Mac — 5.77%
1.77% due 01/15/03 (v)		80,171		80,035
5.25% due 07/15/11		358,156		361,470
6.25% due 08/25/22		184,476		192,074
5.625% due 07/15/28		553,416		569,611
6.50% due 04/15/29		253,663		267,042

THE ENTERPRISE Group of Funds, Inc.

110

Enterprise Total Return Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
6.50% due 01/15/18 (TBA)	$	500,000	$	527,344
Discount Notes: 1.28% due 03/13/03 (o) (s)		100,000		99,748
1.25% due 05/29/03 (s)		1,900,000		1,890,236
				3,987,500
Ginnie Mae — 9.32%
6.625% due 02/02/03		47,819		49,389
5.875% due 05/01/03		64,528		66,506
6.375% due 08/01/03		84,438		86,831
6.75% due 11/01/03		93,673		96,367
6.75% due 11/01/03		30,858		31,771
7.50% due 05/15/30		343,147		366,146
7.50% due 07/15/30		309,192		329,915
6.50% due 04/15/31		852,094		894,935
6.50% due 04/15/31		1,350,686		1,418,596
6.50% due 09/15/31		300,138		315,637
7.50% due 09/15/31		98,217		104,772
6.50% due 11/15/31		397,990		418,000
6.50% due 11/15/31		253,163		265,892
6.50% due 11/15/31		304,750		320,072
Remic 6.50% due 06/01/32		103,294		109,630
6.00% due 01/15/33 (TBA)		500,000		520,000
6.50% due 01/15/33 (TBA)		1,000,000		1,048,750
				6,443,209
U.S. Treasury Bills — 0.20%
1.19% due 02/13/03 (p) (s)		135,000		134,808
U.S. Treasury Bonds — 0.56%
3.875% due 04/15/29 (o) (TIPS)		220,472		269,596
3.375% due 04/15/32 (o) (TIPS)		102,135		117,822
				387,418
U.S. Treasury Notes — 11.63%
3.50% due 01/15/11 (o) (TIPS)		1,041,630		1,143,351
3.625% due 01/15/08 (o) (TIPS)		6,284,096		6,894,835
				8,038,186
Total U.S. Government Obligations
(Identified cost $20,067,496)				20,352,595
Municipal Bonds — 0.88%
Utilities — 0.88%
Cook County Illinois (FGIC Insured), 5.125% due 11/15/26		300,000		306,669
San Antonio Texas Water Revenue (FSA Insured), 5.00% due 05/15/32		300,000		302,286
Total Municipal Bonds
(Identified cost $609,536)				608,955

	Number of Shares, Contracts, Notional or Principal Amount		Value
Foreign Government Obligations — 5.90%
Brazil Federative Republic 2.563% due 04/15/03 (q) (v)	$	196,000	$	150,967
Brazil Federative Republic 11.50% due 03/12/08		170,000		129,200
Brazil Federative Republic 12.25% due 03/06/30		225,000		156,375
Brazil Federative Republic 8.875% due 04/15/24		100,000		55,000
Bulgaria National Republic 2.688% due 01/28/03 (q) (v)		116,400		107,961
Chile Republic 7.125% due 01/11/12		700,000		786,871
Republic of Croatia 2.688% due 01/31/03 (q) (v)		55,074		54,660
Republic of Panama 8.25% due 04/22/08		300,000		311,250
Republic of Panama 9.625% due 02/08/11		190,000		207,575
Republic of Panama 9.375% due 01/16/23		400,000		412,000
Republic of Peru 9.125% due 02/21/12 (o)		460,000		450,800
South Africa Republic 7.375% due 04/25/12		75,000		81,187
United Mexican States 8.50% due 02/01/06 (o)		100,000		113,475
United Mexican States 8.375% due 01/14/11		250,000		282,500
United Mexican States 7.50% due 01/14/12		300,000		321,375
United Mexican States 8.30% due 08/15/31		430,000		453,650
Total Foreign Government Obligations
(Identified cost $3,927,610)				4,074,846
Commercial Paper — 11.69%
CBA Delaware Finance Inc. 1.31% due 03/18/03		800,000		797,787
Danske Corporation 1.31% due 03/18/03		800,000		797,788
Eksportfinans ASA 1.25% due 01/02/03		500,000		499,983
HBOS Treasury Services 1.34% due 02/19/03		1,000,000		998,176
HBOS Treasury Services 1.34% due 02/20/03		700,000		698,697
HBOS Treasury Services 1.33% due 03/27/03		600,000		598,116

THE ENTERPRISE Group of Funds, Inc.

111

Enterprise Total Return Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares, Contracts, Notional or Principal Amount		Value
National Australia Funding Delaware Inc., 1.41% due 01/02/03	$	500,000	$	499,980
Svenska Handlesbank 1.32% due 03/24/03		700,000		697,895
UBS Finance Delaware Inc. 1.32% due 02/18/03		700,000		698,768
UBS Finance Delaware Inc. 1.325% due 03/13/03		1,000,000		997,387
UBS Finance Inc. 1.35% due 03/19/03		800,000		797,690
Total Commercial Paper
(Identified cost $8,082,267)				8,082,267
Repurchase Agreement — 0.94%
State Street Bank & Trust Repurchase Agreement, 0.95% due 01/02/03 Proceeds $653,034 Collateral: GNMA $655,000, 7.00% due 04/20/32 Value $672,048	$	653,000		653,000
Total Repurchase Agreement
(Identified cost $653,000)				653,000
Put Options — 0.00%
Euribor Futures, Strike Price 95.5, Expires 03/17/03		61		—
Eurodollar Futures, Strike Price 95.75, Expires 03/14/03		37		463
Total Put Options
(Identified cost $1,171)				463
Total Investments
(Identified cost $69,367,270)			$	69,650,957
Call Options Written — (0.23)%
Swap Option 3 Month LIBOR, Strike Price 3.00, Expires 11/12/03		2,900,000		(22,788)
Swap Option 3 Month LIBOR, Strike Price 3.25, Expires 05/30/03		3,500,000		(39,631)
Swap Option 3 Month LIBOR, Strike Price 4.00, Expires 06/18/03		3,100,000		(41,887)
Swap Option 3 Month LIBOR, Strike Price 4.00, Expires 01/07/05		1,400,000		(27,290)
Swap Option 3 Month LIBOR, Strike Price 5.13, Expires 11/10/03		400,000		(25,241)
Total Call Options Written
(Premiums received $122,670)				(156,837)

	Number of Contracts or Notional Amount	Value
Put Options Written — (0.06)%
Euribor Futures, Strike Price 96.75, Expires 03/17/03	36		(472)
Eurodollar Futures, Strike Price 96.5, Expires 03/14/03	15		(94)
Eurodollar Futures, Strike Price 96.75, Expires 03/14/03	36		(450)
Eurodollar Futures, Strike Price 98, Expires 03/14/03	26		(162)
Swap Option 3 Month LIBOR, Strike Price 5.5, Expires 06/18/03	3,100,000		(19,809)
Swap Option 3 Month LIBOR, Strike Price 6.13, Expires 11/10/03	400,000		(3,195)
Swap Option 3 Month LIBOR, Strike Price 7.00, Expires 01/07/05	1,800,000		(20,603)
Total Put Options Written
(Premiums received $140,544)			(44,785)
Other Assets Less Liabilities — (0.48)%			(330,387)
Net Assets — 100%		$	69,118,948

(b) Security is in bankruptcy and/or is in default of interest payment. Fund has ceased accrual of interest.

(o) Security, or portion thereof, out on loan at December 31, 2002.

(p) Security segregated as collateral for open futures contracts.

(q) Represents a Brady Bond. Brady Bonds are securities which have been issued to refinance commercial bank loans and other debt. The risk associated with these instruments is the amount of any uncollateralized principal or interest payments since there is a high default rate of commercial bank loans by countries issuing these securities.

(r) Remarketable Security. With remarketable securities the remarking dealer or lead manager may opt to either redeem or remarket the security during a specified period of time.

(s) The rate shown is the current effective yield.

(v) Variable rate of security; interest rate is as of December 31, 2002.

(144A) The security may only be offered and sold to “qualified institutional buyers” under rule 144A of the Securities Act of 1933.

(FGIC) Financial Guaranty Insurance Corporation.

(FSA) Financial Security Assurance.

(LIBOR)  London Interbank Offering Rate.

(TBA) To Be Announced — certain specific security details such as final par amount and maturity date have not yet been determined.

(TIPS) Treasury Inflation Protected Security. Principal amount is periodically adjusted for inflation.

THE ENTERPRISE Group of Funds, Inc.

112

Enterprise Total Return Fund — (Continued)

Portfolio of Investments

December 31, 2002

Open futures contracts as of December 31, 2002 were as follows:

Description	Expiration Month	Number of Contracts	Unrealized Appreciation (Depreciation)
Short U.S. Treasury 5 Year Notes	03/03	12	$	(29,531)
Long Germany Federative Republic 5 Year Bonds	03/03	36		82,693
Long Germany Federative Republic 10 Year Bonds	03/03	30		86,113
Long U.S. Treasury 10 Year Notes	03/03	80		242,281
Long U.S. Treasury Bonds	03/03	26		126,445
			$	508,001

See notes to financial statements.

www.enterprisefunds.com

THE ENTERPRISE Group of Funds, Inc.

113

Enterprise Money Market Fund

SUBADVISER’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.

2002 Performance Review

The past year proved very difficult in terms of correctly anticipating changes in the Fed’s posture and consequent shifts in the money market yield curve. As with most of last year, ECM struggled to extend the Fund’s weighted average maturity (“WAM”) based on ECM’s belief that the U.S. economy would regain traction sooner rather than later. Obviously, the long-anticipated economic recovery has yet to fully materialize so the Fed has not seen fit to tighten. Thus, the Fund’s performance was somewhat hindered as the Fund did not maintain the WAM consistently approaching the 90-day maximum that was in hindsight, the most rewarding strategy. ECM made the right call early in 2002 by sticking short and then extending the WAM in the second quarter aggressively, yet was not so successful in shortening up later in the year.

ECM was able to take advantage of periodic market credit concerns throughout the year and purchase attractively priced floating-rate securities and short corporate bonds. ECM continues to wait for the Fed’s medicine to take effect while keeping the Fund’s average maturity fairly short. Retail sales remain very weak, the unemployment picture has yet to brighten, and the manufacturing sector shows no sign of positive momentum.

The boogieman in the closet remains the war on terror and the efforts to effect a regime change in Iraq. With UN inspections continuing for several more weeks, this overhang on the markets may remain perhaps through the end of the first quarter. With minimal U.S. inflation continuing, the Fed can maintain its accommodative stance almost indefinitely. The Fed may also be on hold until the Iraqi situation approaches resolution. The money markets are priced as if the Fed will need to reduce interest rates again to provide further stimulus. ECM does not anticipate a near-term ease, but cannot rule one out based on potential outcomes in the Middle East. There has been little or no yield sacrifice in keeping fairly short in terms of average maturity. The average maturity of the Fund fell during the fourth quarter. Going forward, ECM plans to maintain a high degree of liquidity in the Fund by keeping a healthy portion of the Fund short and in floating-rate securities while seizing on opportunities to extend into longer maturing / attractive yielding investments. ECM believes that such a strategy best positions the Fund in the current environment.

An investment in the 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 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.

114

Enterprise Money Market Fund

PORTFOLIO OF INVESTMENTS

December 31, 2002

	Number of Shares or Principal Amount		Value
Commercial Paper — 60.19%
American Electric Power 2.14% due 04/04/03	$	2,750,000	$	2,750,000
BellSouth Corporation 1.40% due 01/07/03		13,160,000		13,156,929
Boeing Capital Corporation 1.42% due 01/24/03		14,803,000		14,789,570
Bristol Myers Squibb Company 1.40% due 01/15/03		14,000,000		13,992,378
CIT Group Inc. 1.38% due 01/17/03		6,955,000		6,950,734
CIT Group Inc. 1.40% due 01/24/03		8,000,000		7,992,844
Coca Cola Enterprises Inc. 1.35% due 01/13/03		9,869,000		9,864,559
Daimlerchrysler Holding Corporation, 1.96% due 01/13/03		3,000,000		2,998,040
Duke Capital Corporation 1.85% due 01/10/03		3,000,000		2,998,613
Ford Motor Credit Company 1.96% due 01/09/03		2,750,000		2,748,802
FPL Group Capital Inc. 1.42% due 01/07/03		9,000,000		8,997,870
Golden Funding Corporation 1.36% due 02/13/03		7,810,000		7,797,313
Household Finance Corporation 1.56% due 01/09/03		5,000,000		4,998,267
Lockhart Funding L.L.C. 1.82% due 02/21/03		15,000,000		14,961,325
National Rural Utilities Cooperative Finance, 1.40% due 01/16/03		8,072,000		8,067,291
National Rural Utilities Cooperative Finance, 1.42% due 02/04/03		2,683,000		2,679,402
Philip Morris Companies Inc. 1.35% due 02/05/03		5,538,000		5,530,731
Sara Lee Corporation 1.48% due 01/07/03		4,830,000		4,828,809
Sears Roebuck Acceptance Corporation, 1.98% due 01/13/03		3,000,000		2,998,020
Starfish Global Funding 1.40% due 01/10/03		4,514,000		4,512,420
Stellar Funding Group Inc. 1.37% due 01/13/03		13,047,000		13,041,042
Tannehill Capital Company 1.40% due 01/24/03		15,000,000		14,986,583
Three Pillars Funding Corporation, 1.40% due 01/17/03		3,390,000		3,387,891
Thunder Bay Funding Inc. 1.60% due 01/06/03		7,601,000		7,599,311
United Healthcare Corporation 1.45% due 01/28/03		2,529,000		2,526,250

	Number of Shares or Principal Amount		Value
United Healthcare Corporation 1.45% due 01/29/03	$	12,161,000	$	12,147,285
Vodafone Airtouch 1.35% due 01/30/03		4,567,000		4,562,033
Wyeth 1.85% due 01/21/03		1,320,000		1,318,643
Total Commercial Paper
(Identified cost $203,182,956)				203,182,956
U. S. Government Obligations — 1.63%
Federal Home Loan Bank 1.675% due 12/23/03		5,500,000		5,500,000
Total U. S. Government Obligations
(Identified cost $5,500,000)				5,500,000
Variable Rate Corporate Securities — 19.25%
American Express Credit Corporation 1.85% due 03/25/03 (v)		6,000,000		6,000,000
Bankamerica Corporation 4.20% due 08/15/03 (v)		3,800,000		3,855,375
Capital One Funding Corporation 6.20% due 03/01/17 (v)		358,000		358,000
Caterpillar Financial Services Corporation 1.94% due 07/09/03 (v)		6,000,000		6,000,000
Credit Suisse First Boston 1.98% due 08/25/03 (v)		1,250,000		1,250,000
General Electric Capital Corporation 1.854% due 10/17/03 (v)		3,850,000		3,850,000
Goldman Sachs Group 6.923% due 04/11/08 (v)		4,000,000		4,000,000
International Lease Finance Corporation 2.10% due 02/11/03 (v)		10,000,000		10,000,000
Merrill Lynch & Company Inc. 1.93% due 08/13/03 (v)		2,625,000		2,625,782
Merrill Lynch & Company Inc. 1.473% due 07/11/07 (v)		2,000,000		2,000,000
National Rural Utilities Cooperative 2.009% due 07/17/03 (v)		4,050,000		4,043,896
Syndicated Loan Funding Trust 1.545% due 12/09/03 (144A) (v)		6,000,000		6,000,000
Wells Fargo Bank 1.327% due 01/21/03 (v)		15,000,000		14,999,828
Total Variable Rate Corporate Securities
(Identified cost $64,982,880)				64,982,880

THE ENTERPRISE Group of Funds, Inc.

115

Enterprise Money Market Fund — (Continued)

PORTFOLIO OF INVESTMENTS

December 31. 2002

	Number of Shares or Principal Amount		Value
Short Term Corporate Notes — 16.25%
Associates Corporation North America, 5.75% due 11/01/03	$	10,000,000	$	10,299,947
Chesapeake & Potomac Telephone Company, 6.00% due 05/01/03		5,000,000		5,053,847
Florida Power & Light Company 5.79% due 09/15/03		5,500,000		5,640,057
Goldman Sachs Group 3.15% due 05/02/03		8,000,000		8,000,000
M & I Marshall & Ilsley Bank 5.263% due 12/15/03		4,500,000		4,649,615
Merrill Lynch & Company Inc. 5.92% due 01/06/03		5,000,000		5,002,721
Merrill Lynch & Company Inc. 6.00% due 02/12/03		5,000,000		5,022,812
New England Telephone & Telegraph Company, 6.25% due 03/15/03		7,000,000		7,066,965
SBC Communications Inc. 4.295% due 06/05/03 (144A)		4,100,000		4,126,360
Total Short Term Corporate Notes
(Identified cost $54,862,323)				54,862,323
Bankers’ Acceptance — 1.92%
Union Bancal Commercial Funding 1.63% due 04/01/03		6,500,000		6,473,513

	Number of Shares or Principal Amount		Value
Total Bankers’ Acceptance
(Identified cost $6,473,513)				6,473,513
Repurchase Agreement — 0.12%
State Street Bank & Trust Repurchase Agreement, 0.95% due 01/02/03 Proceeds $395,021 Collateral: GNMA $395,000, 7.00% due 04/20/32 Value $405,281	$	395,000	$	395,000
Total Repurchase Agreement
(Identified cost $395,000)				395,000
Total Investments
(Identified cost $335,396,672)			$	335,396,672
Other Assets Less Liabilities — 0.64%				2,160,750
Net Assets — 100%			$	337,557,422

(144A) The security may only be offered and sold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

(v) Variable rate security; interest rate is as of December 31, 2002.

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

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THE ENTERPRISE Group of Funds, Inc.

117

Statements of Assets and Liabilities

December 31, 2002

	AGGRESSIVE STOCK
	Mid-Cap Growth Fund			Multi-Cap Growth Fund			Small Company Growth Fund			Small Company Value Fund			Capital Appreciation Fund
Assets:
Investments at value	$	10,383,462		$	72,958,788		$	83,043,365		$	431,077,406		$	156,492,407
Foreign currency at value (cost — $102,738)		—			—			—			—			—
Investments purchased in connection with securities lending, at value (Note 5)		129,653			—			21,354,968			41,553,453			8,530,008
Receivable for fund shares sold		7,050			41,047			351,858			875,327			536,636
Receivable for investments sold		67,530			—			—			590,155			803,953
Dividends and interest receivable		569			16,094			5,252			474,767			39,929
Receivable for securities lending income		240			—			1,793			14,866			1,414
Receivable for margin variation on open futures		—			—			—			—			—
Due from investment adviser		—			—			31,529			—			—
Cash and other assets		40,463			36,887			36,964			62,284			82,853
Total assets	$	10,628,967		$	73,052,816		$	104,825,729		$	474,648,258		$	166,487,200
Liabilities:
Payable for fund shares redeemed		86,742			224,877			220,801			1,378,328			258,852
Options written, at market value (premiums received $8,140)		—			—			—			—			—
Payable due upon sale of investments in connection with securities lending (Note 5)		129,653			—			21,354,968			41,553,453			8,530,008
Payable for investments purchased		73,487			—			173,374			—			319,825
Dividends and distributions payable		—			—			—			—			—
Payable for margin variation on open futures		—			—			—			—			—
Accrued expenses and other liabilities		14,465			117,313			92,401			328,495			133,185
Total liabilities	$	304,347		$	342,190		$	21,841,544		$	43,260,276		$	9,241,870
Net assets	$	10,324,620		$	72,710,626		$	82,984,185		$	431,387,982		$	157,245,330
Analysis of net assets
Paid-in capital	$	20,695,906		$	225,552,693		$	104,310,617		$	494,315,679		$	229,101,076
Undistributed (accumulated) net investment income (loss)		—			—			—			77,396			—
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions		(10,645,651	)		(149,686,541	)		(3,856,211	)		(7,998,712	)		(73,837,649	)
Unrealized appreciation (depreciation) on investments and foreign currency denominated amounts		274,365			(3,155,526	)		(17,470,221	)		(55,006,381	)		1,981,903
Net assets	$	10,324,620		$	72,710,626		$	82,984,185		$	431,387,982		$	157,245,330
Class A: Net assets	$	4,256,205		$	26,113,910		$	31,714,041		$	188,979,085		$	96,878,331
Shares outstanding		1,219,631			5,152,198			1,457,655			26,654,755			4,310,686
Net asset value and redemption price per share		$3.49			$5.07			$21.76			$7.09			$22.47
Maximum sales charge per share		$0.17			$0.25			$1.09			$0.35			$1.12
Maximum offering price per share, including sales charge of 4.75% (except 3.50% for Short Duration Bond)		$3.66			$5.32			$22.85			$7.44			$23.59
Class B: Net assets	$	4,314,990		$	36,328,912		$	33,447,031		$	156,569,162		$	44,261,781
Shares outstanding		1,251,440			7,305,139			1,594,113			23,324,389			2,098,666
Net asset value and offering price per share		$3.45			$4.97			$20.98			$6.71			$21.09
Class C: Net assets	$	1,561,585		$	9,955,402		$	10,448,043		$	78,810,948		$	15,135,179
Shares outstanding		452,476			2,004,404			496,294			11,449,269			697,464
Net asset value per share		$3.45			$4.97			$21.05			$6.88			$21.70
Maximum sales charge per share		$0.03			$0.05			$0.21			$0.07			$0.22
Maximum offering price per share, including sales charge of 1.00%		$3.48			$5.02			$21.26			$6.95			$21.92
Class Y: Net assets	$	191,840		$	312,402		$	7,375,070		$	7,028,787		$	970,039
Shares outstanding		54,460			60,724			330,503			951,702			42,010
Net asset value, offering and redemption price per share		$3.52			$5.14			$22.31			$7.39			$23.09
Investments at cost	$	10,109,097		$	76,114,314		$	100,513,586		$	486,083,787		$	154,511,212

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

118

STOCK															INTERNATIONAL
Deep Value Fund			Equity Fund			Equity Income Fund			Growth Fund			Growth and Income Fund			International Growth Fund
$	15,102,789		$	89,346,477		$	98,088,803		$	1,327,165,885		$	146,862,481		$	56,406,975
	—			—			—			—			—			102,396
	2,664,021			3,981,800			2,545,498			18,125,273			2,788,812			2,972,535
	56,400			168,349			92,506			7,746,636			307,950			123,977
	—			70,570			—			—			11,040,995			—
	20,360			21,205			190,334			1,111,047			78,850			160,943
	441			1,007			303			2,789			443			683
	—			—			—			—			—			—
	4,934			—			8,996			—			19,464			7,795
	36,107			40,725			43,220			112,647			40,410			585,767
$	17,885,052		$	93,630,133		$	100,969,660		$	1,354,264,277		$	161,139,405		$	60,361,071
	21,343			525,366			199,412			3,627,932			406,724			127,342
	—			—			—			—			100			—
	2,664,021			3,981,800			2,545,498			18,125,273			2,788,812			2,972,535
	—			369,212			—			—			10,987,389			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	22,685			93,869			78,318			883,758			154,887			139,422
$	2,708,049		$	4,970,247		$	2,823,228		$	22,636,963		$	14,337,912		$	3,239,299
$	15,177,003		$	88,659,886		$	98,146,432		$	1,331,627,314		$	146,801,493		$	57,121,772
$	18,780,220		$	183,414,803		$	112,003,488		$	1,713,346,645		$	210,026,337		$	100,089,422
	—			—			8,336			—			—			—
	(1,543,344	)		(32,806,645	)		(5,583,088	)		(329,541,772	)		(40,901,406	)		(33,341,303	)
	(2,059,873	)		(61,948,272	)		(8,282,304	)		(52,177,559	)		(22,323,438	)		(9,626,347	)
$	15,177,003		$	88,659,886		$	98,146,432		$	1,331,627,314		$	146,801,493		$	57,121,772
$	6,037,064		$	34,148,123		$	60,165,511		$	689,196,481		$	50,361,482		$	23,225,368
	795,320			8,842,564			3,270,066			50,527,050			2,089,254			2,255,086
	$7.59			$3.86			$18.40			$13.64			$24.11			$10.30
	$0.38			$0.19			$0.92			$0.68			$1.20			$0.51
	$7.97			$4.05			$19.32			$14.32			$25.31			$10.81
$	6,514,825		$	32,036,902		$	30,879,045		$	426,756,593		$	73,049,440		$	16,905,028
	860,946			8,528,895			1,705,541			32,838,415			3,109,467			1,709,476
	$7.57			$3.76			$18.11			$13.00			$23.49			$9.89
$	2,373,596		$	21,556,734		$	6,828,951		$	174,418,836		$	13,379,696		$	6,375,323
	313,526			5,732,070			374,673			13,236,630			568,899			639,290
	$7.57			$3.76			$18.23			$13.18			$23.52			$9.97
	$0.08			$0.04			$0.18			$0.13			$0.24			$0.10
	$7.65			$3.80			$18.41			$13.31			$23.76			$10.07
$	251,518		$	918,127		$	272,925		$	41,255,404		$	10,010,875		$	10,616,053
	33,049			233,777			14,848			2,914,998			405,722			1,022,041
	$7.61			$3.93			$18.38			$14.15			$24.67			$10.39
$	17,162,662		$	151,294,749		$	106,371,107		$	1,379,343,444		$	169,193,959		$	66,055,351

THE ENTERPRISE Group of Funds, Inc.

119

Statements of Assets and Liabilities — (Continued)

December 31, 2002

	SECTOR/SPECIALTY
	Global Financial Services Fund			Global Health Care Fund			Global Socially Responsive Fund			Mergers and Acquisitions Fund			Technology Fund
Assets:
Investments at value	$	23,534,576		$	11,505,252		$	4,128,258		$	74,160,722		$	52,222,042
Foreign currency at value (cost — $83,664, $35, $36 and $389,261)		85,720			38			37			—			—
Investments purchased in connection with securities lending, at value (Note 5)		3,248,742			2,966,033			—			3,004,889			—
Receivable for fund shares sold		9,373			3,529			11,068			332,192			45,720
Receivable for investments sold		—			—			—			3,418			4,946,813
Dividends and interest receivable		67,385			12,672			4,606			35,065			25,458
Receivable for securities lending income		1,249			535			—			1,913			—
Receivable for margin variation on open futures		—			—			—			—			—
Due from investment adviser		6,246			9,822			288			—			—
Cash and other assets		121,581			82,840			39,307			53,846			66,425
Total assets	$	27,074,872		$	14,580,721		$	4,183,564		$	77,592,045		$	57,306,458
Liabilities:
Payable for fund shares redeemed		4,075			122,119			1,191			60,483			189,846
Options written, at market value (premiums received $263,214)		—			—			—			—			—
Payable due upon sale of investments in connection with securities lending (Note 5)		3,248,742			2,966,033			—			3,004,889			—
Payable for investments purchased		—			—			42,359			635,720			5,731,938
Dividends and distributions payable		—			—			—			—			—
Payable for margin variation on open futures		—			—			—			—			—
Accrued expenses and other liabilities		29,855			23,378			10,547			72,267			132,262
Total liabilities	$	3,282,672		$	3,111,530		$	54,097		$	3,773,359		$	6,054,046
Net assets	$	23,792,200		$	11,469,191		$	4,129,467		$	73,818,686		$	51,252,412
Analysis of net assets
Paid-in capital	$	26,469,290		$	19,135,034		$	5,394,579		$	77,154,704		$	346,271,179
Undistributed (accumulated) net investment income (loss)		(6,173	)		—			—			—			—
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions		(62,030	)		(7,708,025	)		(1,034,501	)		(1,344,143	)		(292,966,085	)
Unrealized appreciation (depreciation) on investments and foreign currency denominated amounts		(2,608,887	)		42,182			(230,611	)		(1,991,875	)		(2,052,682	)
Net assets	$	23,792,200		$	11,469,191		$	4,129,467		$	73,818,686		$	51,252,412
Class A: Net assets	$	8,760,039		$	4,600,916		$	2,314,439		$	31,021,370		$	18,683,753
Shares outstanding		1,714,684			835,648			326,446			3,199,135			3,535,998
Net asset value and redemption price per share		$5.11			$5.51			$7.09			$9.70			$5.28
Maximum sales charge per share		$0.25			$0.27			$0.35			$0.48			$0.26
Maximum offering price per share, including sales charge of 4.75% (except 3.50% for Short Duration Bond)		$5.36			$5.78			$7.44			$10.18			$5.54
Class B: Net assets	$	7,724,623		$	5,433,717		$	1,057,050		$	23,554,049		$	26,016,094
Shares outstanding		1,522,030			1,000,795			151,063			2,454,966			5,010,228
Net asset value and offering price per share		$5.08			$5.43			$7.00			$9.59			$5.19
Class C: Net assets	$	1,553,238		$	1,253,119		$	631,951		$	18,229,246		$	6,211,757
Shares outstanding		306,253			230,814			90,344			1,899,633			1,196,748
Net asset value per share		$5.07			$5.43			$6.99			$9.60			$5.19
Maximum sales charge per share		$0.05			$0.05			$0.07			$0.10			$0.05
Maximum offering price per share, including sales charge of 1.00%		$5.12			$5.48			$7.06			$9.70			$5.24
Class Y: Net assets	$	5,754,300		$	181,439		$	126,027		$	1,014,021		$	340,808
Shares outstanding		1,124,703			32,693			17,588			103,743			63,362
Net asset value, offering and redemption price per share		$5.12			$5.55			$7.17			$9.77			$5.38
Investments at cost	$	26,148,753		$	11,463,128		$	4,359,047		$	76,130,010		$	54,274,724

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

120

DOMESTIC HYBRID						INCOME														MONEY MARKET
Managed Fund			Strategic Allocation Fund			Government Securities Fund			High-Yield Bond Fund			Short Duration Bond Fund		Tax-Exempt Income Fund			Total Return Fund			Money Market Fund
$	112,504,732		$	21,373,004		$	278,311,206		$	179,658,528		$	7,357,364	$	36,386,474		$	69,650,957		$	335,396,672
	—			—			—			—			—		—			403,945			—
	2,084,500			2,127,880			—			40,867,890			—		—			10,818,270			—
	67,443			46,540			2,109,379			2,423,549			183,339		64,956			677,145			1,519,893
	34,186			—			—			—			—		—			9,235,938			—
	434,498			54,205			1,309,179			4,033,017			43,161		490,735			730,472			1,126,393
	1,043			510			—			10,216			—		—			474			—
	—			—			—			—			—		—			353			—
	10,652			—			192,460			35,540			42,226		8,807			29,253			—
	41,857			42,266			74,042			939,914			51,022		90,463			44,868			283,018
$	115,178,911		$	23,644,405		$	281,996,266		$	227,968,654		$	7,677,112	$	37,041,435		$	91,591,675		$	338,325,976
	148,985			36,426			429,070			230,302			—		68,862			80,772			600,004
	—			—			—			—			—		—			201,623			—
	2,084,500			2,127,880			—			40,867,890			—		—			10,818,270			—
	560,979			—			13,102,790			784,624			—		—			11,273,750			—
	—			—			139,649			370,807			6,976		29,631			27,049			4,426
	7,884			—			—			—			—		—			27,014			—
	123,044			25,357			193,723			96,277			34,631		17,691			44,249			164,124
$	2,925,392		$	2,189,663		$	13,865,232		$	42,349,900		$	41,607	$	116,184		$	22,472,727		$	768,554
$	112,253,519		$	21,454,742		$	268,131,034		$	185,618,754		$	7,635,505	$	36,925,251		$	69,118,948		$	337,557,422
$	162,100,277		$	26,568,615		$	259,188,942		$	223,373,953		$	7,622,263	$	34,627,734		$	68,265,135		$	337,557,422
	—			2,456			—			(66,016	)		—		—			—			—
	(39,873,131	)		(824,120	)		(1,969,902	)		(25,870,095	)		—		(18,960	)		(14,150	)		—
	(9,973,627	)		(4,292,209	)		10,911,994			(11,819,088	)		13,242		2,316,477			867,963			—
$	112,253,519		$	21,454,742		$	268,131,034		$	185,618,754		$	7,635,505	$	36,925,251		$	69,118,948		$	337,557,422
$	47,470,956		$	7,778,991		$	125,269,780		$	96,790,269		$	2,155,441	$	24,295,862		$	26,530,270		$	264,160,904
	8,572,316			983,211			9,725,210			11,046,604			215,169		1,715,478			2,589,722			264,160,904
	$5.54			$7.91			$12.88			$8.76			$10.02		$14.16			$10.24			$1.00
	$0.28			$0.39			$0.64			$0.44			$0.36		$0.71			$0.51			—
	$5.82			$8.30			$13.52			$9.20			$10.38		$14.87			$10.75			$1.00
$	61,097,696		$	8,434,989		$	104,676,988		$	54,213,650		$	2,267,520	$	8,760,267		$	23,949,768		$	56,322,953
	11,282,310			1,072,647			8,137,196			6,193,833			226,562		618,422			2,338,904			56,322,953
	$5.42			$7.86			$12.86			$8.75			$10.01		$14.17			$10.24			$1.00
$	3,512,718		$	4,117,000		$	27,941,895		$	29,059,513		$	2,110,381	$	3,767,049		$	16,585,523		$	12,775,522
	649,599			523,713			2,172,422			3,320,088			210,850		265,972			1,619,855			12,775,522
	$5.41			$7.86			$12.86			$8.75			$10.01		$14.16			$10.24			$1.00
	$0.05			$0.08			$0.13			$0.09			$0.10		$0.14			$0.10			—
	$5.46			$7.94			$12.99			$8.84			$10.11		$14.30			$10.34			$1.00
$	172,149		$	1,123,762		$	10,242,371		$	5,555,322		$	1,102,163	$	102,073		$	2,053,387		$	4,298,043
	30,891			141,040			796,270			633,535			110,007		7,205			200,528			4,298,043
	$5.57			$7.97			$12.86			$8.77			$10.02		$14.17			$10.24			$1.00
$	122,561,124		$	25,665,213		$	267,399,212		$	191,477,616		$	7,344,122	$	34,069,997		$	69,367,270		$	335,396,672

THE ENTERPRISE Group of Funds, Inc.

121

Statements of Operations

For the Year Ended December 31, 2002

	AGGRESSIVE STOCK
	Mid-Cap Growth Fund			Multi-Cap Growth Fund			Small Company Growth Fund			Small Company Value Fund
Investment income:
Dividends	$	29,725		$	351,305	(1)	$	139,292		$	4,554,734	(1)(2)
Interest		7,203			84,997			107,900			808,274
Securities lending		2,950			—			27,341			97,665
Total investment income		39,878			436,302			274,533			5,460,673
Expenses:
Investment advisory fees		99,094			1,048,990			890,206			3,589,194
Distribution fees, Class A		23,594			176,310			152,234			987,023
Distribution fees, Class B		53,792			506,635			372,929			1,676,713
Distribution fees, Class C		23,164			146,953			95,752			842,625
Transfer agent fees		96,180			611,041			427,101			1,441,136
Custodian and accounting fees		24,278			50,778			32,430			170,450
Audit and legal fees		2,113			18,410			15,677			85,315
Reports to shareholders		9,847			69,370			61,025			327,281
Registration fees		36,548			29,056			30,194			40,614
Directors’ fees		243			1,533			1,507			8,328
Other expenses		851			6,438			5,107			16,535
Total expenses		369,704			2,665,514			2,084,162			9,185,214
Expense reimbursement		(109,747	)		(367,030	)		(320,783	)		—
Expenses reduced by expense offset arrangements		(7,465	)		—			—			—
Total expenses, net of reimbursement and expense offset arrangements		252,492			2,298,484			1,763,379			9,185,214
Net investment income (loss)		(212,614	)		(1,862,182	)		(1,488,846	)		(3,724,541	)
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on investments		(4,624,671	)		(37,270,718	)		(1,549,187	)		4,873,554
Net realized gain (loss) on foreign currency transactions		—			—			—			—
Net realized gain (loss) on swap transactions		—			—			—			—
Net realized gain (loss) on futures transactions		—			—			—			(2,528,332	)
Net realized gain (loss) on options transactions		—			—			—			—
Net change in unrealized gain (loss) on investments and foreign currency denominated amounts		(427,700	)		(8,741,733	)		(23,644,187	)		(66,205,968	)
Net realized and unrealized gain (loss) on investments		(5,052,371	)		(46,012,451	)		(25,193,374	)		(63,860,746	)
Increase (decrease) in net assets resulting from operations	$	(5,264,985	)	$	(47,874,633	)	$	(26,682,220	)	$	(67,585,287	)

(1) Net of foreign taxes withheld of $1,399 for Multi-Cap Growth, $5,330 for Small Company Value, $33,404 for Capital Appreciation, $687 for Deep Value, $5,745 for Equity Income, $80,558 for Growth, $42,851 for Growth and Income and $141,163 for International Growth.

(2) Includes $24,480 of income from affiliated company.

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

122

STOCK																		INTERNATIONAL
Capital Appreciation Fund			Deep Value Fund			Equity Fund			Equity Income Fund			Growth Fund			Growth and Income Fund			International Growth Fund
$	1,203,969	(1)	$	297,757	(1)	$	324,777		$	2,499,175	(1)	$	18,219,209	(1)	$	2,940,622	(1)	$	1,445,882	(1)
	111,671			4,734			16,690			228,240			854,846			108,547			22,713
	20,919			3,190			12,769			9,622			32,082			8,869			13,009
	1,336,559			305,681			354,236			2,737,037			19,106,137			3,058,038			1,481,604
	1,394,003			105,518			855,127			852,635			11,215,920			1,421,307			573,189
	530,498			24,524			194,858			316,071			3,342,452			298,215			125,561
	515,266			60,316			410,197			355,299			5,139,889			948,276			195,989
	158,850			23,567			286,477			76,163			1,929,070			173,455			74,578
	620,105			82,436			483,840			348,030			3,836,094			688,001			351,803
	67,221			22,826			37,366			48,547			386,004			66,810			94,811
	33,070			2,478			20,242			20,200			262,458			33,283			11,967
	121,229			9,824			79,023			75,096			984,230			127,530			43,695
	30,149			35,885			38,418			30,879			46,852			33,804			33,062
	2,972			271			1,909			1,836			24,305			2,970			1,057
	9,828			1,360			6,916			6,681			70,723			8,497			563
	3,483,191			369,005			2,414,373			2,131,437			27,237,997			3,802,148			1,506,275
	—			(112,872	)		(211,647	)		(190,216	)		—			(392,366	)		(166,069	)
	(8,340	)		—			—			—			—			—			—
	3,474,851			256,133			2,202,726			1,941,221			27,237,997			3,409,782			1,340,206
	(2,138,292	)		49,548			(1,848,490	)		795,816			(8,131,860	)		(351,744	)		141,398
	(18,559,019	)		(1,522,300	)		(12,978,556	)		(5,039,994	)		(213,818,100	)		(39,190,836	)		(9,058,929	)
	124,589			65			—			(22	)		—			—			(119,349	)
	—			—			—			—			—			—			—
	—			—			—			—			—			—			—
	—			—			—			—			—			8,265			—
	(13,584,625	)		(2,369,810	)		(29,036,420	)		(15,095,413	)		(186,491,498	)		(22,690,214	)		(5,388,495	)
	(32,019,055	)		(3,892,045	)		(42,014,976	)		(20,135,429	)		(400,309,598	)		(61,872,785	)		(14,566,773	)
$	(34,157,347	)	$	(3,842,497	)	$	(43,863,466	)	$	(19,339,613	)	$	(408,441,458	)	$	(62,224,529	)	$	(14,425,375	)

THE ENTERPRISE Group of Funds, Inc.

123

Statements of Operations — (Continued)

For the Year Ended December 31, 2002

	SECTOR/SPECIALTY
	Global Financial Services Fund			Global Health Care Fund			Global Socially Responsive Fund			Mergers and Acquisitions Fund			Technology Fund
Investment income:
Dividends	$	922,994	(1)	$	70,434	(1)	$	65,762	(1)	$	578,709	(1)	$	94,345	(1)
Interest		724			7,544			5,139			575,264			68,513
Securities lending		9,289			3,900			—			15,094			—
Total investment income		933,007			81,878			70,901			1,169,067			162,858
Expenses:
Investment advisory fees		242,008			152,544			36,303			629,032			734,579
Distribution fees, Class A		52,575			27,275			10,283			131,773			125,449
Distribution fees, Class B		88,072			67,551			10,664			231,277			361,277
Distribution fees, Class C		18,408			22,176			5,582			164,863			91,215
Transfer agent fees		116,622			104,136			32,758			203,852			680,053
Custodian and accounting fees		23,149			25,760			15,475			35,933			36,913
Audit and legal fees		5,000			2,711			716			12,448			12,468
Reports to shareholders		18,853			11,283			2,695			48,493			43,940
Registration fees		30,469			37,168			35,911			34,160			39,102
Directors’ fees		456			261			72			1,354			801
Other expenses		2,753			1,304			1,194			1,206			3,972
Total expenses		598,365			452,169			151,653			1,494,391			2,129,769
Expense reimbursement		(69,179	)		(121,041	)		(72,686	)		—			(486,689	)
Expenses reduced by expense offset arrangements		—			(564	)		—			—			—
Total expenses, net of reimbursement and expense offset arrangements		529,186			330,564			78,967			1,494,391			1,643,080
Net investment income (loss)		403,821			(248,686	)		(8,066	)		(325,324	)		(1,480,222	)
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on investments		(203,296	)		(6,077,338	)		(827,602	)		(920,266	)		(45,107,355	)
Net realized gain (loss) on foreign currency transactions		202,542			41,524			44,247			(3,926	)		—
Net realized gain (loss) on swap transactions		—			—			—			—			—
Net realized gain (loss) on futures transactions		—			—			—			—			—
Net realized gain (loss) on options transactions		—			—			—			—			—
Net change in unrealized gain (loss) on investments and foreign currency denominated amounts		(3,114,331	)		(1,171,067	)		(82,267	)		(1,538,187	)		(7,230,133	)
Net realized and unrealized gain (loss) on investments		(3,115,085	)		(7,206,881	)		(865,622	)		(2,462,379	)		(52,337,488	)
Increase (decrease) in net assets resulting from operations	$	(2,711,264	)	$	(7,455,567	)	$	(873,688	)	$	(2,787,703	)	$	(53,817,710	)

(1) Net of foreign taxes withheld of $68,263 for Global Financial Services, $854 for Global Health Care, $5,567 for Global Socially Responsive, $1,290 for Mergers and Acquisitions, $7,429 for Technology, $3,405 for Managed and $909 for Strategic Allocation.

(2) Commencemement of Operations.

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

124

DOMESTIC HYBRID						INCOME															MONEY MARKET
Managed Fund			Strategic Allocation Fund			Government Securities Fund			High-Yield Bond Fund			Short Duration Bond Fund			Tax-Exempt Income Fund			Total Return Fund			Money Market Fund
												11/29/02(2) through 12/31/02
$	2,010,169	(1)	$	340,331	(1)	$	—		$	—		$	—		$	—		$	—		$	—
	569,104			52,866			13,224,634			14,002,866			8,878			1,599,871			1,837,239			6,335,957
	13,748			4,207			—			60,913			—			—			4,335			—
	2,593,021			397,404			13,224,634			14,063,779			8,878			1,599,871			1,841,574			6,335,957
	1,179,042			166,653			1,331,479			938,515			2,466			168,142			270,970			1,103,918
	278,769			39,049			486,574			358,991			374			103,428			74,205			—
	747,035			78,524			832,795			511,838			1,553			79,499			147,506			—
	44,308			43,335			224,718			200,748			1,437			26,069			89,502			—
	541,725			84,015			647,034			376,588			34,125			55,508			121,352			765,389
	106,796			69,298			76,332			79,011			1,000			17,586			55,250			55,356
	27,482			3,948			39,473			27,739			74			5,988			7,368			56,524
	106,017			15,676			136,483			101,502			550			20,838			24,943			95,495
	29,678			41,210			33,552			33,401			3,828			29,958			42,130			36,817
	2,330			421			4,031			2,796			17			129			837			5,433
	9,294			2,662			14,926			35,190			165			3,314			4,337			34,864
	3,072,476			544,791			3,827,397			2,666,319			45,589			510,459			838,400			2,153,796
	(372,493	)		(149,951	)		(472,409	)		(265,178	)		(42,226	)		(82,299	)		(151,996	)		—
	—			—			—			—			—			(578	)		—			—
	2,699,983			394,840			3,354,988			2,401,141			3,363			427,582			686,404			2,153,796
	(106,962	)		2,564			9,869,646			11,662,638			5,515			1,172,289			1,155,170			4,182,161
	(30,515,097	)		(675,145	)		149,311			(11,290,708	)		—			100,007			1,021,336			—
	—			—			—			—			—			—			(910	)		—
	—			—			—			—			—			—			36,390			—
	1,200			—			—			(4,545	)		—			—			423,730			—
	—			—			—			—			—			—			82,939			—
	(9,082,940	)		(5,155,073	)		8,251,033			(473,562	)		13,242			1,590,371			795,867			—
	(39,596,837	)		(5,830,218	)		8,400,344			(11,768,815	)		13,242			1,690,378			2,359,352			—
$	(39,703,799	)	$	(5,827,654	)	$	18,269,990		$	(106,177	)	$	18,757		$	2,862,667		$	3,514,522		$	4,182,161

THE ENTERPRISE Group of Funds, Inc.

125

Statements of Changes In Net Assets

	AGGRESSIVE STOCK
	Mid-Cap Growth Fund						Multi-Cap Growth Fund						Small Company Growth Fund
	Year Ended December 31, 2002			Year Ended December 31, 2001			Year Ended December 31, 2002			Year Ended December 31, 2001			Year Ended December 31, 2002			Year Ended December 31, 2001
From operations:
Net investment income (loss)	$	(212,614	)	$	(119,020	)	$	(1,862,182	)	$	(2,159,094	)	$	(1,488,846	)	$	(1,447,092	)
Net realized gain (loss) on investments and foreign currency transactions		(4,624,671	)		(4,029,814	)		(37,270,718	)		(66,777,024	)		(1,549,187	)		(2,307,024	)
Net realized gain (loss) on futures and options		—			—			—			—			—			—
Net change in unrealized gain (loss) on investments and foreign currency denominated amounts		(427,700	)		776,918			(8,741,733	)		32,069,189			(23,644,187	)		(888,392	)
Increase (decrease) in net assets resulting from operations		(5,264,985	)		(3,371,916	)		(47,874,633	)		(36,866,929	)		(26,682,220	)		(4,642,508	)
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		—			—			—			—			—			(286,964	)
Net realized gains on investments Class B		—			—			—			—			—			(324,781	)
Net realized gains on investments Class C		—			—			—			—			—			(72,446	)
Net realized gains on investments Class Y		—			—			—			—			—			(67,416	)
Total distributions to shareholders		—			—			—			—			—			(751,607	)
From capital share transactions:
Class A
Shares sold		2,334,108			4,334,303			6,603,699			76,519,695			20,335,405			41,589,544
Shares exchanged due to merger		—			2,806,272			—			—			—			—
Reinvestment of distributions		—			—			—			—			—			313,704
Shares redeemed		(2,735,863	)		(1,359,346	)		(17,773,057	)		(87,703,987	)		(16,031,284	)		(38,456,997	)
Net increase (decrease) — Class A		(401,755	)		5,781,229			(11,169,358	)		(11,184,292	)		4,304,121			3,446,251
Class B
Shares sold		1,779,787			3,570,153			7,632,147			14,100,119			14,020,407			12,423,173
Shares exchanged due to merger		—			3,435,246			—			—			—			—
Reinvestment of distributions		—			—			—			—			—			305,225
Shares redeemed		(2,197,697	)		(421,525	)		(16,298,849	)		(17,282,833	)		(10,947,055	)		(6,535,674	)
Net increase (decrease) — Class B		(417,910	)		6,583,874			(8,666,702	)		(3,182,714	)		3,073,352			6,192,724
Class C
Shares sold		902,570			2,024,937			2,442,938			4,256,609			8,094,965			3,054,401
Shares exchanged due to merger		—			1,043,941			—			—			—			—
Reinvestment of distributions		—			—			—			—			—			64,419
Shares redeemed		(1,541,069	)		(249,658	)		(6,410,353	)		(8,784,797	)		(4,183,472	)		(1,830,370	)
Net increase (decrease) — Class C		(638,499	)		2,819,220			(3,967,415	)		(4,528,188	)		3,911,493			1,288,450
Class Y
Shares sold		163,668			94,887			356,401			217,184			2,719,677			2,051,879
Shares exchanged due to merger		—			112,112			—			—			—			—
Reinvestment of distributions		—			—			—			—			—			59,632
Shares redeemed		(107,301	)		(21,405	)		(284,694	)		(309,978	)		(2,128,640	)		(1,809,003	)
Net increase (decrease) — Class Y		56,367			185,594			71,707			(92,794	)		591,037			302,508
Total increase (decrease) in net assets resulting from capital share transactions		(1,401,797	)		15,369,917			(23,731,768	)		(18,987,988	)		11,880,003			11,229,933
Total increase (decrease) in net assets		(6,666,782	)		11,998,001			(71,606,401	)		(55,854,917	)		(14,802,217	)		5,835,818
Net assets:
Beginning of period	$	16,991,402		$	4,993,401		$	144,317,027		$	200,171,944		$	97,786,402		$	91,950,584
End of period	$	10,324,620		$	16,991,402		$	72,710,626		$	144,317,027		$	82,984,185		$	97,786,402

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

126

						STOCK
Small Company Value Fund						Capital Appreciation Fund						Deep Value Fund						Equity Fund
Year Ended December 31, 2002			Year Ended December 31, 2001			Year Ended December 31, 2002			Year Ended December 31, 2001			Year Ended December 31, 2002			For the Period May 31, 2001 through December 31, 2001			Year Ended December 31, 2002			Year Ended December 31, 2001
$	(3,724,541	)	$	(1,952,919	)	$	(2,138,292	)	$	(2,281,209	)	$	49,548		$	(1,896	)	$	(1,848,490	)	$	(2,084,035	)
	4,873,554			186,668			(18,434,430	)		(50,945,445	)		(1,522,235	)		24,969			(12,978,556	)		(16,843,291	)
	(2,528,332	)		1,273,054			—			—			—			—			—			—
	(66,205,968	)		17,567,659			(13,584,625	)		(3,353,811	)		(2,369,810	)		309,937			(29,036,420	)		(11,981,965	)
	(67,585,287	)		17,074,462			(34,157,347	)		(56,580,465	)		(3,842,497	)		333,010			(43,863,466	)		(30,909,291	)
	—			—			—			—			(38,016	)		—			—			—
	—			—			—			—			(7,346	)		—			—			—
	—			—			—			—			(1,721	)		—			—			—
	—			—			—			—			(2,630	)		—			—			—
	(2,872,871	)		(854,517	)		—			—			(7,885	)		(11,477	)		—			(332,216	)
	(2,503,212	)		(649,198	)		—			—			(8,532	)		(13,426	)		—			(316,513	)
	(1,234,161	)		(312,784	)		—			—			(3,190	)		(5,581	)		—			(217,646	)
	(104,112	)		(26,391	)		—			—			(332	)		(468	)		—			(5,690	)
	(6,714,356	)		(1,842,890	)		—			—			(69,652	)		(30,952	)		—			(872,065	)
	88,161,726			166,399,437			39,713,331			56,463,766			5,251,754			4,157,142			13,023,379			29,318,561
	—			—			—			—			—			—			—			3,874,405
	2,625,615			789,960			—			—			42,866			10,082			—			306,550
	(87,312,595	)		(130,586,033	)		(50,540,989	)		(67,981,075	)		(1,840,392	)		(211,141	)		(18,085,762	)		(20,111,203	)
	3,474,746			36,603,364			(10,827,658	)		(11,517,309	)		3,454,228			3,956,083			(5,062,383	)		13,388,313
	56,562,308			56,406,892			14,298,352			11,969,659			4,476,569			4,851,155			8,632,134			17,987,269
	—			—			—			—			—			—			—			3,329,945
	2,311,074			602,349			—			—			14,863			11,259			—			296,274
	(37,134,865	)		(17,308,753	)		(16,552,761	)		(14,975,990	)		(1,145,583	)		(122,482	)		(13,217,527	)		(12,296,582	)
	21,738,517			39,700,488			(2,254,409	)		(3,006,331	)		3,345,849			4,739,932			(4,585,393	)		9,316,906
	36,949,024			35,642,466			7,130,640			4,735,978			1,616,524			2,030,452			8,580,303			18,307,791
	—			—			—			—			—			—			—			1,221,444
	1,049,007			271,635			—			—			4,217			4,535			—			173,046
	(24,544,333	)		(14,096,383	)		(6,094,548	)		(6,217,165	)		(636,031	)		(51,884	)		(11,846,714	)		(8,536,292	)
	13,453,698			21,817,718			1,036,092			(1,481,187	)		984,710			1,983,103			(3,266,411	)		11,165,989
	5,590,740			6,735,245			921,303			229,606			278,740			165,932			870,253			778,212
	—			—			—			—			—			—			—			109,021
	75,565			16,830			—			—			1,865			179			—			2,824
	(4,655,294	)		(753,001	)		(261,281	)		(225,175	)		(122,512	)		(1,015	)		(549,291	)		(199,440	)
	1,011,011			5,999,074			660,022			4,431			158,093			165,096			320,962			690,617
	39,677,972			104,120,644			(11,385,953	)		(16,000,396	)		7,942,880			10,844,214			(12,593,225	)		34,561,825
	(34,621,671	)		119,352,216			(45,543,300	)		(72,580,861	)		4,030,731			11,146,272			(56,456,691	)		2,780,469
$	466,009,653		$	346,657,437		$	202,788,630		$	275,369,491		$	11,146,272		$	—		$	145,116,577		$	142,336,108
$	431,387,982		$	466,009,653		$	157,245,330		$	202,788,630		$	15,177,003		$	11,146,272		$	88,659,886		$	145,116,577

THE ENTERPRISE Group of Funds, Inc.

127

Statements of Changes In Net Assets — (Continued)

	Equity Income Fund						Growth Fund						Growth and Income Fund
	Year Ended December 31, 2002			Year Ended December 31, 2001			Year Ended December 31, 2002			Year Ended December 31, 2001			Year Ended December 31, 2002			Year Ended December 31, 2001
From operations:
Net investment income (loss)	$	795,816		$	870,265		$	(8,131,860	)	$	(10,703,877	)	$	(351,744	)	$	(214,072	)
Net realized gain (loss) on investments and foreign currency transactions		(5,040,016	)		1,388,294			(213,818,100	)		(83,193,650	)		(39,190,836	)		(1,691,388	)
Net realized gain (loss) on futures and options		—			—			—			—			8,265			17,280
Net change in unrealized gain (loss) on investments and foreign currency denominated amounts		(15,095,413	)		(19,976,569	)		(186,491,498	)		(190,734,496	)		(22,690,214	)		(39,386,910	)
Increase (decrease) in net assets resulting from operations		(19,339,613	)		(17,718,010	)		(408,441,458	)		(284,632,023	)		(62,224,529	)		(41,275,090	)
Distributions to shareholders from:
Net investment income, Class A		(623,743	)		(666,580	)		—			—			—			—
Net investment income, Class B		(137,978	)		(103,693	)		—			—			—			—
Net investment income, Class C		(30,496	)		(24,488	)		—			—			—			—
Net investment income, Class Y		(4,132	)		(3,792	)		—			—			—			—
Net realized gains on investments Class A		(557,395	)		(1,329,955	)		—			—			—			(371,461	)
Net realized gains on investments Class B		(293,427	)		(653,291	)		—			—			—			(534,874	)
Net realized gains on investments Class C		(64,230	)		(138,603	)		—			—			—			(99,868	)
Net realized gains on investments Class Y		(2,545	)		(5,412	)		—			—			—			(57,472	)
Total distributions to shareholders		(1,713,946	)		(2,925,814	)		—			—			—			(1,063,675	)
From capital share transactions:
Class A
Shares sold		10,399,965			53,228,657			277,793,699			440,866,174			15,753,039			42,279,289
Shares exchanged due to merger		—			—			7,363,678			—			—			—
Reinvestment of distributions		1,106,544			1,897,220			—			—			—			361,200
Shares redeemed		(17,703,963	)		(57,533,572	)		(216,706,794	)		(511,525,534	)		(27,909,920	)		(38,286,400	)
Net increase (decrease) — Class A		(6,197,454	)		(2,407,695	)		68,450,583			(70,659,360	)		(12,156,881	)		4,354,089
Class B
Shares sold		9,507,072			10,403,060			72,581,431			72,136,450			15,142,873			36,639,870
Shares exchanged due to merger		—			—			7,296,375			—			—			—
Reinvestment of distributions		389,901			692,097			—			—			—			500,105
Shares redeemed		(10,589,787	)		(7,100,781	)		(115,945,655	)		(100,359,502	)		(29,475,653	)		(21,262,123	)
Net increase (decrease) — Class B		(692,814	)		3,994,376			(36,067,849	)		(28,223,052	)		(14,332,780	)		15,877,852
Class C
Shares sold		3,309,499			3,299,676			58,916,865			42,836,772			4,924,818			10,037,575
Shares exchanged due to merger		—			—			2,196,313			—			—			—
Reinvestment of distributions		83,512			148,140			—			—			—			90,762
Shares redeemed		(3,211,807	)		(2,463,018	)		(47,575,116	)		(46,996,427	)		(8,142,846	)		(6,297,999	)
Net increase (decrease) — Class C		181,204			984,798			13,538,062			(4,159,655	)		(3,218,028	)		3,830,338
Class Y
Shares sold		39,926			247,787			16,756,822			10,293,880			2,894,929			1,338,106
Shares exchanged due to merger		—			—			108,538			—			—			—
Reinvestment of distributions		3,416			4,708			—			—			—			67,413
Shares redeemed		(36,084	)		(24,185	)		(16,021,444	)		(15,911,406	)		(2,666,885	)		(2,766,168	)
Net increase (decrease) — Class Y		7,258			228,310			843,916			(5,617,526	)		228,044			(1,360,649	)
Total increase (decrease) in net assets resulting from capital share transactions		(6,701,806	)		2,799,789			46,764,712			(108,659,593	)		(29,479,645	)		22,701,630
Total increase (decrease) in net assets		(27,755,365	)		(17,844,035	)		(361,676,746	)		(393,291,616	)		(91,704,174	)		(19,637,135	)
Net assets:
Beginning of period	$	125,901,797		$	143,745,832		$	1,693,304,060		$	2,086,595,676		$	238,505,667		$	258,142,802
End of period	$	98,146,432		$	125,901,797		$	1,331,627,314		$	1,693,304,060		$	146,801,493		$	238,505,667

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

128

INTERNATIONAL						SECTOR/SPECIALTY
International Growth Fund						Global Financial Services Fund						Global Health Care Fund						Global Socially Responsive Fund
Year Ended December 31, 2002			Year Ended December 31, 2001			Year Ended December 31, 2002			Year Ended December 31, 2001			Year Ended December 31, 2002			Year Ended December 31, 2001			Year Ended December 31, 2002			Year Ended December 31, 2001
$	141,398		$	(532,304	)	$	403,821		$	186,404		$	(248,686	)	$	(233,543	)	$	(8,066	)	$	(3,549	)
	(9,178,278	)		(18,579,407	)		(754	)		1,518,667			(6,035,814	)		(1,322,229	)		(783,355	)		(252,576	)
	—			—			—			—			—			—			—			—
	(5,388,495	)		(10,117,281	)		(3,114,331	)		(4,755,691	)		(1,171,067	)		1,018,753			(82,267	)		(107,742	)
	(14,425,375	)		(29,228,992	)		(2,711,264	)		(3,050,620	)		(7,455,567	)		(537,019	)		(873,688	)		(363,867	)
	—			—			(133,948	)		(118,443	)		—			—			—			—
	—			—			(78,942	)		(26,013	)		—			—			—			—
	—			—			(15,213	)		(7,872	)		—			—			—			—
	—			—			(121,325	)		(83,421	)		—			—			—			—
	—			—			(150,719	)		(428,249	)		—			—			—			(3,829	)
	—			—			(134,880	)		(298,315	)		—			—			—			(1,981	)
	—			—			(27,137	)		(64,776	)		—			—			—			(901	)
	—			—			(98,073	)		(193,710	)		—			—			—			(225	)
	—			—			(760,237	)		(1,220,799	)		—			—			—			(6,936	)
	25,814,064			340,854,188			5,629,294			3,787,716			1,983,830			5,981,355			1,636,263			1,198,911
	—			4,946,620			—			—			—			—			—			—
	—			—			268,368			525,890			—			—			—			3,049
	(31,273,042	)		(348,025,095	)		(9,525,234	)		(4,381,526	)		(2,328,481	)		(2,278,764	)		(880,816	)		(55,498	)
	(5,458,978	)		(2,224,287	)		(3,627,572	)		(67,920	)		(344,651	)		3,702,591			755,447			1,146,462
	7,385,518			4,772,914			1,789,558			3,958,614			1,775,462			6,194,321			446,757			655,716
	—			3,180,237			—			—			—			—			—			—
	—			—			200,445			301,024			—			—			—			1,457
	(7,833,046	)		(4,684,158	)		(2,554,842	)		(3,796,062	)		(1,716,090	)		(1,109,056	)		(188,544	)		(97,737	)
	(447,528	)		3,268,993			(564,839	)		463,576			59,372			5,085,265			258,213			559,436
	3,515,097			14,874,824			299,432			1,152,921			541,332			2,116,660			335,074			208,911
	—			2,893,979			—			—			—			—			—			—
	—			—			39,159			68,385			—			—			—			269
	(4,010,481	)		(14,649,080	)		(630,257	)		(792,028	)		(1,365,786	)		(667,212	)		(61,163	)		(42,575	)
	(495,384	)		3,119,723			(291,666	)		429,278			(824,454	)		1,449,448			273,911			166,605
	20,135,760			21,179,793			273,220			56,004			175,466			98,756			41,921			34,273
	—			298,492			—			—			—			—			—			—
	—			—			219,398			276,909			—			(85,642	)		—			62
	(20,823,027	)		(22,381,247	)		(202,475	)		(27,554	)		(162,539	)		—			(10,507	)		(1,434	)
	(687,267	)		(902,962	)		290,143			305,359			12,927			13,114			31,414			32,901
	(7,089,157	)		3,261,467			(4,193,934	)		1,130,293			(1,096,806	)		10,250,418			1,318,985			1,905,404
	(21,514,532	)		(25,967,525	)		(7,665,435	)		(3,141,126	)		(8,552,373	)		9,713,399			445,297			1,534,601
$	78,636,304		$	104,603,829		$	31,457,635		$	34,598,761		$	20,021,564		$	10,308,165		$	3,684,170		$	2,149,569
	$ 57,121,772		$	78,636,304		$	23,792,200		$	31,457,635		$	11,469,191		$	20,021,564		$	4,129,467		$	3,684,170

THE ENTERPRISE Group of Funds, Inc.

129

Statements of Changes In Net Assets — (Continued)

													DOMESTIC/HYBRID
	Mergers and Acquisitions Fund						Technology Fund						Managed Fund
	Year Ended December 31, 2002			For the Period February 28, 2001 through December 31, 2001			Year Ended December 31, 2002			Year Ended December 31, 2002			Year Ended December 31, 2002			Year Ended December 31, 2001
From operations:
Net investment income (loss)	$	(325,324	)	$	(36,010	)	$	(1,480,222	)	$	(2,761,533	)	$	(106,962	)	$	(569,223	)
Net realized gain (loss) on investments and foreign currency transactions		(924,192	)		1,019,481			(45,107,355	)		(170,702,027	)		(30,515,097	)		(7,004,455	)
Net realized gain (loss) on futures and options		—			—			—			—			1,200			(107,989	)
Net change in unrealized gain (loss) on investments and foreign currency denominated amounts		(1,538,187	)		(453,688	)		(7,230,133	)		98,493,577			(9,082,940	)		(24,988,250	)
Increase (decrease) in net assets resulting from operations		(2,787,703	)		529,783			(53,817,710	)		(74,969,983	)		(39,703,799	)		(32,669,917	)
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		(215,477	)		(278,747	)		—			—			—			—
Net realized gains on investments Class B		(168,008	)		(245,144	)		—			—			—			—
Net realized gains on investments Class C		(129,712	)		(133,997	)		—			—			—			—
Net realized gains on investments Class Y		(7,179	)		(8,331	)		—			—			—			—
Total distributions to shareholders		(520,376	)		(666,219	)		—			—			—			—
From capital share transactions:
Class A
Shares sold		16,855,444			26,200,997			5,017,124			115,726,611			7,792,450			14,379,140
Shares exchanged due to merger		—			—			2,048,925			—			—			—
Reinvestment of distributions		178,169			235,061			—			—			—			—
Shares redeemed		(8,546,562	)		(2,519,959	)		(16,926,759	)		(126,881,239	)		(25,984,581	)		(24,304,583	)
Net increase (decrease) — Class A		8,487,051			23,916,099			(9,860,710	)		(11,154,628	)		(18,192,131	)		(9,925,443	)
Class B
Shares sold		8,325,950			22,270,189			6,196,887			13,857,227			9,095,650			11,242,700
Shares exchanged due to merger		—			—			1,753,209			—			—			—
Reinvestment of distributions		143,533			215,716			—			—			—			—
Shares redeemed		(4,986,873	)		(1,217,243	)		(12,893,066	)		(20,836,122	)		(21,295,936	)		(16,262,285	)
Net increase (decrease) — Class B		3,482,610			21,268,662			(4,942,970	)		(6,978,895	)		(12,200,286	)		(5,019,585	)
Class C
Shares sold		10,687,732			12,541,890			1,247,661			3,527,676			1,017,976			1,588,220
Shares exchanged due to merger		—			—			391,285			—			—			—
Reinvestment of distributions		99,895			106,467			—			—			—			—
Shares redeemed		(3,306,400	)		(1,076,719	)		(3,724,197	)		(9,270,956	)		(1,904,718	)		(2,471,671	)
Net increase (decrease) — Class C		7,481,227			11,571,638			(2,085,251	)		(5,743,280	)		(886,742	)		(883,451	)
Class Y
Shares sold		975,226			802,740			232,968			409,366			2,037,115			4,228,267
Shares exchanged due to merger		—			—			101,642			—			—			—
Reinvestment of distributions		1,425			2,097			—			—			—			—
Shares redeemed		(638,492	)		(87,082	)		(210,418	)		(343,992	)		(43,171,592	)		(9,407,066	)
Net increase (decrease) — Class Y		338,159			717,755			124,192			65,374			(41,134,477	)		(5,178,799	)
Total increase (decrease) in net assets resulting from capital share transactions		19,789,047			57,474,154			(16,764,739	)		(23,811,429	)		(72,413,636	)		(21,007,278	)
Total increase (decrease) in net assets		16,480,968			57,337,718			(70,582,449	)		(98,781,412	)		(112,117,435	)		(53,677,195	)
Net assets:
Beginning of period	$	57,337,718		$	—		$	121,834,861		$	220,616,273		$	224,370,954		$	278,048,149
End of period	$	73,818,686		$	57,337,718		$	51,252,412		$	121,834,861		$	112,253,519		$	224,370,954

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

130

						INCOME
Strategic Allocation Fund						Government Securities Fund						High-Yield Bond Fund						Short Duration Bond Fund
Year Ended December 31, 2002			For the Period August 31, 2001 through December 31, 2001			Year Ended December 31, 2002			Year Ended December 31, 2001			Year Ended December 31, 2002			Year Ended December 31, 2001			For the Period November 29, 2002 through December 31, 2002
$	2,564		$	(5,484	)	$	9,869,646		$	8,445,838		$	11,662,638		$	9,175,241		$	5,515
	(675,145	)		(123,648	)		149,311			702,036			(11,290,708	)		(6,816,815	)		—
	—			—			—			—			(4,545	)		(9,788	)		—
	(5,155,073	)		862,864			8,251,033			1,993,794			(473,562	)		3,113,821			13,242
	(5,827,654	)		733,732			18,269,990			11,141,668			(106,177	)		5,462,459			18,757
	—			—			(4,973,594	)		(4,727,725	)		(6,132,263	)		(5,008,569	)		(2,471	)
	—			—			(3,355,670	)		(2,487,346	)		(3,660,792	)		(3,154,670	)		(2,504	)
	—			—			(902,028	)		(580,096	)		(1,429,492	)		(771,235	)		(2,340	)
	—			—			(407,771	)		(427,568	)		(440,091	)		(240,767	)		(1,563	)
	—			(17,236	)		—			—			—			—			—
	—			(10,952	)		—			—			—			—			—
	—			(6,385	)		—			—			—			—			—
	—			(2,661	)		—			—			—			—			—
	—			(37,234	)		(9,639,063	)		(8,222,735	)		(11,662,638	)		(9,175,241	)		(8,878	)
	5,527,451			9,970,028			66,634,255			120,147,474			65,803,015			57,013,831			2,162,322
	—			—			—			—			—			—			—
	—			12,356			4,128,980			3,760,875			4,186,073			4,204,557			622
	(3,753,342	)		(2,243,788	)		(43,824,837	)		(112,500,346	)		(31,443,674	)		(50,028,663	)		(10,900	)
	1,774,109			7,738,596			26,938,398			11,408,003			38,545,414			11,189,725			2,152,044
	7,272,289			5,191,519			52,688,470			35,380,077			21,561,941			22,041,854			2,265,272
	—			—			—			—			—			—			—
	—			9,122			2,762,450			2,061,517			2,447,328			2,290,018			815
	(2,071,052	)		(40,486	)		(20,901,348	)		(12,749,327	)		(13,150,724	)		(8,015,037	)		(1,026	)
	5,201,237			5,160,155			34,549,572			24,692,267			10,858,545			16,316,835			2,265,061
	3,251,029			3,081,957			18,190,206			14,365,713			23,578,559			13,432,682			2,108,112
	—			—			—			—			—			—			—
	—			4,079			673,945			444,998			826,975			537,765			530
	(1,085,117	)		(10,607	)		(8,597,124	)		(6,880,496	)		(7,801,942	)		(6,756,056	)		(196	)
	2,165,912			3,075,429			10,267,027			7,930,215			16,603,592			7,214,391			2,108,446
	843,974			1,198,910			3,851,347			779,165			2,804,558			3,727,721			1,100,075
	—			—			—			—			—			—			—
	—			2,340			395,997			418,871			333,272			205,386			—
	(574,658	)		(106	)		(1,997,000	)		(853,854	)		(1,340,433	)		(444,439	)		—
	269,316			1,201,144			2,250,344			344,182			1,797,397			3,488,668			1,100,075
	9,410,574			17,175,324			74,005,341			44,374,667			67,804,948			38,209,619			7,625,626
	3,582,920			17,871,822			82,636,268			47,293,600			56,036,133			34,496,837			7,635,505
$	17,871,822		$	—		$	185,494,766		$	138,201,166		$	129,582,621		$	95,085,784		$	—
$	21,454,742		$	17,871,822		$	268,131,034		$	185,494,766		$	185,618,754		$	129,582,621		$	7,635,505

THE ENTERPRISE Group of Funds, Inc.

131

Statements of Changes in Net Assets — (Continued)

													MONEY MARKET
	Tax-Exempt Income Fund						Total Return Fund						Money Market Fund
	Year Ended December 31, 2002			Year Ended December 31, 2001			Year Ended December 31, 2002			For the Period August 31, 2001 through December 31, 2001			Year Ended December 31, 2002			Year Ended December 31, 2001
From operations:
Net investment income (loss)	$	1,172,289		$	1,120,586		$	1,155,170		$	119,503		$	4,182,161		$	11,617,616
Net realized gain (loss) on investments and foreign currency transactions		100,007			168,756			1,056,816			(6,730	)		—			—
Net realized gain (loss) on futures and options		—			—			506,669			—			—			—
Net change in unrealized gain (loss) on investments and foreign currency denominated amounts		1,590,371			(422,611	)		795,867			72,096			—			—
Increase (decrease) in net assets resulting from operations		2,862,667			866,731			3,514,522			184,869			4,182,161			11,617,616
Distributions to shareholders from:
Net investment income, Class A		(841,781	)		(846,427	)		(536,342	)		(51,206	)		(3,344,856	)		(9,936,204	)
Net investment income, Class B		(246,943	)		(217,400	)		(397,412	)		(35,606	)		(646,318	)		(1,255,866	)
Net investment income, Class C		(79,960	)		(53,389	)		(234,180	)		(17,391	)		(148,061	)		(316,995	)
Net investment income, Class Y		(3,605	)		(3,370	)		(56,697	)		(17,126	)		(42,926	)		(108,551	)
Net realized gains on investments Class A		(47,004	)		—			(517,283	)		(49,985	)		—			—
Net realized gains on investments Class B		(16,804	)		—			(463,120	)		(43,431	)		—			—
Net realized gains on investments Class C		(7,209	)		—			(319,062	)		(18,771	)		—			—
Net realized gains on investments Class Y		(196	)		—			(39,789	)		(10,851	)		—			—
Total distributions to shareholders		(1,243,502	)		(1,120,586	)		(2,563,885	)		(244,367	)		(4,182,161	)		(11,617,616	)
From capital share transactions:
Class A
Shares sold		5,228,082			27,523,028			22,128,174			7,774,478			240,934,087			1,080,795,303
Shares exchanged due to merger		—			—			—			—			—			—
Reinvestment of distributions		627,285			614,698			961,602			91,602			3,313,236			9,276,295
Shares redeemed		(4,660,113	)		(28,206,457	)		(3,902,457	)		(846,487	)		(231,588,964	)		(1,110,793,783	)
Net increase (decrease) — Class A		1,195,254			(68,731	)		19,187,319			7,019,593			12,658,359			(20,722,185	)
Class B
Shares sold		3,050,025			3,219,217			19,780,122			6,286,486			56,933,243			61,258,138
Shares exchanged due to merger		—			—			—			—			—			—
Reinvestment of distributions		175,668			134,027			750,436			69,101			601,664			1,173,030
Shares redeemed		(1,784,082	)		(3,003,840	)		(3,068,443	)		(185,673	)		(45,256,820	)		(46,482,551	)
Net increase (decrease) — Class B		1,441,611			349,404			17,462,115			6,169,914			12,278,087			15,948,617
Class C
Shares sold		2,663,294			688,463			14,905,660			3,015,705			22,913,569			39,136,728
Shares exchanged due to merger		—			—			—			—			—			—
Reinvestment of distributions		72,612			47,302			435,856			27,715			135,543			304,784
Shares redeemed		(916,724	)		(478,936	)		(1,961,987	)		(54,539	)		(20,906,021	)		(37,518,407	)
Net increase (decrease) — Class C		1,819,182			256,829			13,379,529			2,988,881			2,143,091			1,923,105
Class Y
Shares sold		23,818			226,155			887,182			1,509,663			1,845,363			2,534,486
Shares exchanged due to merger		—			—			—			—			—			—
Reinvestment of distributions		1,671			1,198			67,470			24,296			42,670			108,490
Shares redeemed		(5,526	)		(196,928	)		(425,551	)		(42,602	)		(749,898	)		(2,148,428	)
Net increase (decrease) — Class Y		19,963			30,425			529,101			1,491,357			1,138,135			494,548
Total increase (decrease) in net assets resulting from capital share transactions		4,476,010			567,927			50,558,064			17,669,745			28,217,672			(2,355,915	)
Total increase (decrease) in net assets		6,095,175			314,072			51,508,701			17,610,247			28,217,672			(2,355,915	)
Net assets:
Beginning of period	$	30,830,076		$	30,516,004		$	17,610,247		$	—		$	309,339,750		$	311,695,667
End of period	$	36,925,251		$	30,830,076		$	69,118,948		$	17,610,247		$	337,557,422		$	309,339,750

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

132

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THE ENTERPRISE Group of Funds, Inc.

133

Enterprise Mid-Cap Growth Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Mid-Cap Growth Fund (Class A)	2002			2001			For the Period 10/31/00 through 12/31/00
Net Asset Value Beginning of Period	$	5.12		$	8.73		$	10.00
Net Investment Income (Loss)		(0.05	)F		(0.07	)F		(0.04	)F
Net Realized and Unrealized Gain (Loss) on Investments		(1.58	)		(3.54	)		(1.23	)
Total from Investment Operations		(1.63	)		(3.61	)		(1.27	)
Dividends from Net Investment Income		—			—			—
Distributions from Capital Gains		—			—			—
Total Distributions		—			—			—
Net Asset Value End of Period	$	3.49		$	5.12		$	8.73
Total ReturnC		(31.84	)%		(41.35	)%		(12.70	)%B
Net Assets End of Period (in thousands)	$	4,256		$	6,749		$	2,336
Ratio of Expenses to Average Net Assets (Excluding Expense Offset Arrangements)		1.66	%		1.60	%		1.60	%
Ratio of Expenses to Average Net Assets		1.60	%		1.60	%		1.60	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement and     Expense Offset Arrangements)		2.49	%		3.06	%		15.21	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.30	)%		(1.26	)%		(0.74	)%A
Portfolio Turnover Rate		206	%		174	%		17	%

	Year Ended December 31,
Enterprise Mid-Cap Growth Fund (Class B)	2002			2001			For the Period 10/31/00 through 12/31/00
Net Asset Value Beginning of Period	$	5.09		$	8.73		$	10.00
Net Investment Income (Loss)		(0.08	)F		(0.10	)F		(0.09	)F
Net Realized and Unrealized Gain (Loss) on Investments		(1.56	)		(3.54	)		(1.18	)
Total from Investment Operations		(1.64	)		(3.64	)		(1.27	)
Dividends from Net Investment Income		—			—			—
Distributions from Capital Gains		—			—			—
Total Distributions		—			—			—
Net Asset Value End of Period	$	3.45		$	5.09		$	8.73
Total ReturnD		(32.22	)%		(41.70	)%		(12.70	)%B
Net Assets End of Period (in thousands)	$	4,315		$	6,870		$	1,429
Ratio of Expenses to Average Net Assets (Excluding Expense Offset Arrangements)		2.21	%		2.15	%		2.15	%
Ratio of Expenses to Average Net Assets		2.15	%		2.15	%		2.15	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement and     Expense Offset Arrangements)		3.04	%		3.61	%		15.76	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.85	)%		(1.81	)%		(1.30	)%A
Portfolio Turnover Rate		206	%		174	%		17	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

134

Enterprise Mid-Cap Growth Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Mid-Cap Growth Fund (Class C)	2002			2001			For the Period 10/31/00 through 12/31/00
Net Asset Value Beginning of Period	$	5.09		$	8.71		$	10.00
Net Investment Income (Loss)		(0.08	)F		(0.10	)F		(0.08	)F
Net Realized and Unrealized Gain (Loss) on Investments		(1.56	)		(3.52	)		(1.21	)
Total from Investment Operations		(1.64	)		(3.62	)		(1.29	)
Dividends from Net Investment Income		—			—			—
Distributions from Capital Gains		—			—			—
Total Distributions		—			—			—
Net Asset Value End of Period	$	3.45		$	5.09		$	8.71
Total ReturnD		(32.22	)%C		(41.56	)%		(12.90	)%B
Net Assets End of Period (in thousands)	$	1,562		$	3,131		$	1,111
Ratio of Expenses to Average Net Assets (Excluding Expense Offset Arrangements)		2.21	%		2.15	%		2.15	%
Ratio of Expenses to Average Net Assets		2.15	%		2.15	%		2.15	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement and Expense Offset Arrangements)		3.04	%		3.61	%		15.76	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.85	)%		(1.81	)%		(1.31	)%A
Portfolio Turnover Rate		206	%		174	%		17	%

	Year Ended December 31,
Enterprise Mid-Cap Growth Fund (Class Y)	2002			2001			For the Period 10/31/00 through 12/31/00
Net Asset Value Beginning of Period	$	5.15		$	8.74		$	10.00
Net Investment Income (Loss)		(0.04	)F		(0.04	)F		(0.02	)F
Net Realized and Unrealized Gain (Loss) on Investments		(1.59	)		(3.55	)		(1.24	)
Total from Investment Operations		(1.63	)		(3.59	)		(1.26	)
Dividends from Net Investment Income		—			—			—
Distributions from Capital Gains		—			—			—
Total Distributions		—			—			—
Net Asset Value End of Period	$	3.52		$	5.15		$	8.74
Total Return		(31.65	)%		(41.08	)%		(12.60	)%B
Net Assets End of Period (in thousands)	$	192		$	241		$	117
Ratio of Expenses to Average Net Assets (Excluding Expense Offset Arrangements)		1.21	%		1.15	%		1.15	%
Ratio of Expenses to Average Net Assets		1.15	%		1.15	%		1.15	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement and Expense Offset Arrangements)		2.09	%		2.61	%		14.76	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.84	)%		(0.81	)%		(0.32	)%A
Portfolio Turnover Rate		206	%		174	%		17	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

135

Enterprise Multi-Cap Growth Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Multi-Cap Growth Fund (Class A)	2002			2001			2000			For the Period 7/1/99 through 12/31/99
Net Asset Value Beginning of Period	$	7.90		$	9.56		$	13.74		$	5.00
Net Investment Income (Loss)		(0.09	)F		(0.08	)F		(0.14	)F		(0.05	)F
Net Realized and Unrealized Gain (Loss) on Investments		(2.74	)		(1.58	)		(4.04	)		9.00
Total from Investment Operations		(2.83	)		(1.66	)		(4.18	)		8.95
Dividends from Net Investment Income		—			—			—			—
Distributions from Capital Gains		—			—			—			(0.21	)
Total Distributions		—			—			—			(0.21	)
Net Asset Value End of Period	$	5.07		$	7.90		$	9.56		$	13.74
Total ReturnC		(35.82	)%		(17.36	)%		(30.42	)%		179.26	%B
Net Assets End of Period (in thousands)	$	26,114		$	55,095		$	81,279		$	49,206
Ratio of Expenses to Average Net Assets		1.85	%		1.85	%		1.85	%		1.85	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.20	%		2.02	%		1.92	%		2.43	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.43	)%		(0.98	)%		(1.10	)%		(1.06	)%A
Portfolio Turnover Rate		189	%		105	%		127	%		32	%

	Year Ended December 31,
Enterprise Multi-Cap Growth Fund (Class B)	2002			2001			2000			For the Period 7/1/99 through 12/31/99
Net Asset Value Beginning of Period	$	7.79		$	9.49		$	13.70		$	5.00
Net Investment Income (Loss)		(0.12	)F		(0.12	)F		(0.21	)F		(0.07	)F
Net Realized and Unrealized Gain (Loss) on Investments		(2.70	)		(1.58	)		(4.00	)		8.98
Total from Investment Operations		(2.82	)		(1.70	)		(4.21	)		8.91
Dividends from Net Investment Income		—			—			—			—
Distributions from Capital Gains		—			—			—			(0.21	)
Total Distributions		—			—			—			(0.21	)
Net Asset Value End of Period	$	4.97		$	7.79		$	9.49		$	13.70
Total ReturnD		(36.20	)%		(17.91	)%		(30.73	)%		178.45	%B
Net Assets End of Period (in thousands)	$	36,329		$	68,173		$	87,458		$	39,854
Ratio of Expenses to Average Net Assets		2.40	%		2.40	%		2.40	%		2.40	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.75	%		2.57	%		2.47	%		2.90	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.98	)%		(1.54	)%		(1.63	)%		(1.64	)%A
Portfolio Turnover Rate		189	%		105	%		127	%		32	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

136

Enterprise Multi-Cap Growth Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Multi-Cap Growth Fund (Class C)	2002			2001			2000			For the Period 7/1/99 through 12/31/99
Net Asset Value Beginning of Period	$	7.78		$	9.48		$	13.70		$	5.00
Net Investment Income (Loss)		(0.12	)F		(0.12	)F		(0.21	)F		(0.07	)F
Net Realized and Unrealized Gain (Loss) on Investments		(2.69	)		(1.58	)		(4.01	)		8.98
Total from Investment Operations		(2.81	)		(1.70	)		(4.22	)		8.91
Dividends from Net Investment Income		—			—			—			—
Distributions from Capital Gains		—			—			—			(0.21	)
Total Distributions		—			—			—			(0.21	)
Net Asset Value End of Period	$	4.97		$	7.78		$	9.48		$	13.70
Total ReturnD		(36.12	)%C		(17.93	)%		(30.80	)%		178.46	%B
Net Assets End of Period (in thousands)	$	9,956		$	20,646		$	30,826		$	13,864
Ratio of Expenses to Average Net Assets		2.40	%		2.40	%		2.40	%		2.40	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.75	%		2.57	%		2.47	%		2.92	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.98	)%		(1.53	)%		(1.63	)%		(1.62	)%A
Portfolio Turnover Rate		189	%		105	%		127	%		32	%

	Year Ended December 31,
Enterprise Multi-Cap Growth Fund (Class Y)	2002			2001			2000			For the Period 7/1/99 through 12/31/99
Net Asset Value Beginning of Period	$	7.98			$9.62		$	13.76		$	5.00
Net Investment Income (Loss)		(0.06	)F		(0.04	)F		(0.09	)F		(0.02	)F
Net Realized and Unrealized Gain (Loss) on Investments		(2.78	)		(1.60	)		(4.05	)		8.99
Total from Investment Operations		(2.84	)		(1.64	)		(4.14	)		8.97
Dividends from Net Investment Income		—			—			—			—
Distributions from Capital Gains		—			—			—			(0.21	)
Total Distributions		—			—			—			(0.21	)
Net Asset Value End of Period	$	5.14			$    7.98		$	9.62		$	13.76
Total Return		(35.59	)%		(17.05	)%		(30.09	)%		179.66	%B
Net Assets End of Period (in thousands)	$	312		$	403		$	609		$	641
Ratio of Expenses to Average Net Assets		1.40	%		1.40	%		1.40	%		1.40	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.76	%		1.57	%		1.46	%		2.42	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.98	)%		(0.53	)%		(0.67	)%		(0.51	)%A
Portfolio Turnover Rate		189	%		105	%		127	%		32	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

137

Enterprise Small Company Growth Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Small Company Growth Fund (Class A)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	28.90		$	30.90		$	33.26		$	22.44		$	23.39
Net Investment Income (Loss)		(0.35	)F		(0.39	)F		(0.43	)F		(0.35	)F		(0.32	)F
Net Realized and Unrealized Gain (Loss) on Investments		(6.79	)		(1.40	)		0.44			11.17			(0.63	)
Total from Investment Operations		(7.14	)		(1.79	)		0.01			10.82			(0.95	)
Dividends from Net Investment Income		—			—			—			—			—
Distributions from Capital Gains		—			(0.22	)		(2.37	)		—			—
Total Distributions		—			(0.22	)		(2.37	)		—			—
Redemption Fees		0.00G			0.01			—			—			—
Net Asset Value End of Period	$	21.76		$	28.90		$	30.90		$	33.26		$	22.44
Total ReturnC		(24.71	)%		(5.72	)%		0.55	%		48.22	%		(4.06	)%
Net Assets End of Period (in thousands)	$	31,714		$	37,413		$	35,921		$	19,024		$	8,194
Ratio of Expenses to Average Net Assets		1.73	%		1.85	%		1.85	%		1.85	%		1.85	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.09	%		2.01	%		1.98	%		2.29	%		2.66	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.43	)%		(1.40	)%		(1.26	)%		(1.38	)%		(1.43	)%
Portfolio Turnover Rate		35	%		42	%		53	%		62	%		151	%

Enterprise Small Company Growth Fund (Class B)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	28.02		$	30.11		$	32.62		$	22.13		$	23.33
Net Investment Income (Loss)		(0.47	)F		(0.53	)F		(0.61	)F		(0.48	)F		(0.41	)F
Net Realized and Unrealized Gain (Loss) on Investments		(6.57	)		(1.34	)		0.47			10.97			(0.79	)
Total from Investment Operations		(7.04	)		(1.87	)		(0.14	)		10.49			(1.20	)
Dividends from Net Investment Income		—			—			—			—			—
Distributions from Capital Gains		—			(0.22	)		(2.37	)		—			—
Total Distributions		—			(0.22	)		(2.37	)		—			—
Net Asset Value End of Period	$	20.98		$	28.02		$	30.11		$	32.62		$	22.13
Total ReturnD		(25.12	)%		(6.17	)%		0.10	%		47.40	%		(5.14	)%
Net Assets End of Period (in thousands)	$	33,447		$	41,749		$	38,084		$	19,798		$	8,760
Ratio of Expenses to Average Net Assets		2.28	%		2.40	%		2.40	%		2.40	%		2.40	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.64	%		2.56	%		2.53	%		2.84	%		3.24	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.98	)%		(1.95	)%		(1.81	)%		(1.93	)%		(1.94	)%
Portfolio Turnover Rate		35	%		42	%		53	%		62	%		151	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

138

Enterprise Small Company Growth Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Small Company Growth Fund (Class C)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	28.11		$	30.21		$	32.73		$	22.21		$	23.32
Net Investment Income (Loss)		(0.46	)F		(0.53	)F		(0.62	)F		(0.47	)F		(0.41	)F
Net Realized and Unrealized Gain (Loss) on Investments		(6.60	)		(1.35	)		0.47			10.99			(0.70	)
Total from Investment Operations		(7.06	)		(1.88	)		(0.15	)		10.52			(1.11	)
Dividends from Net Investment Income		—			—			—			—			—
Distributions from Capital Gains		—			(0.22	)		(2.37	)		—			—
Total Distributions		—			(0.22	)		(2.37	)		—			—
Net Asset Value End of Period	$	21.05		$	28.11		$	30.21		$	32.73		$	22.21
Total ReturnD		(25.12	)%C		(6.18	)%		0.07	%		47.37	%		(4.76	)%
Net Assets End of Period (in thousands)	$	10,448		$	9,367		$	8,596		$	4,654		$	2,481
Ratio of Expenses to Average Net Assets		2.27	%		2.40	%		2.40	%		2.40	%		2.40	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.66	%		2.56	%		2.53	%		2.84	%		3.24	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.97	)%		(1.95	)%		(1.81	)%		(1.93	)%		(1.93	)%
Portfolio Turnover Rate		35	%		42	%		53	%		62	%		151	%
	Year Ended December 31,
Enterprise Small Company Growth Fund (Class Y)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	29.51		$	31.39		$	33.56		$	22.55		$	23.43
Net Investment Income (Loss)		(0.26	)F		(0.27	)F		(0.28	)F		(0.23	)F		(0.23	)F
Net Realized and Unrealized Gain (Loss) on Investments		(6.94	)		(1.39	)		0.48			11.24			(0.65	)
Total from Investment Operations		(7.20	)		(1.66	)		0.20			11.01			(0.88	)
Dividends from Net Investment Income		—			—			—			—			—
Distributions from Capital Gains		—			(0.22	)		(2.37	)		—			—
Total Distributions		—			(0.22	)		(2.37	)		—			—
Net Asset Value End of Period	$	22.31		$	29.51		$	31.39		$	33.56		$	22.55
Total Return		(24.40	)%		(5.25	)%		1.12	%		48.82	%		(3.76	)%
Net Assets End of Period (in thousands)	$	7,375		$	9,257		$	9,350		$	9,296		$	9,084
Ratio of Expenses to Average Net Assets		1.29	%		1.40	%		1.40	%		1.40	%		1.40	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.64	%		1.56	%		1.52	%		1.84	%		2.15	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.98	)%		(0.95	)%		(0.82	)%		(0.93	)%		(1.03	)%
Portfolio Turnover Rate		35	%		42	%		53	%		62	%		151	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

139

Enterprise Small Company Value Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Small Company Value Fund (Class A)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	8.17		$	7.84		$	8.53		$	7.92		$	7.75
Net Investment Income (Loss)		(0.04	)F		(0.02	)F		(0.01	)F		(0.02	)F		(0.03	)F
Net Realized and Unrealized Gain (Loss) on Investments		(0.93	)		0.38			0.51			1.28			0.42
Total from Investment Operations		(0.97	)		0.36			0.50			1.26			0.39
Dividends from Net Investment Income		—			—			—			—			—
Distributions from Capital Gains		(0.11	)		(0.03	)		(1.19	)		(0.65	)		(0.22	)
Total Distributions		(0.11	)		(0.03	)		(1.19	)		(0.65	)		(0.22	)
Redemption Fees		0.00	G		0.00	G		—			—			—
Net Asset Value End of Period	$	7.09		$	8.17		$	7.84		$	8.53		$	7.92
Total ReturnC		(11.88	)%		4.63	%		6.52	%		16.13	%		5.15	%
Net Assets End of Period (in thousands)	$	188,979		$	218,905		$	174,043		$	135,222		$	79,867
Ratio of Expenses to Average Net Assets		1.64	%		1.57	%		1.55	%		1.63	%		1.75	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.64	%		1.57	%		1.55	%		1.63	%		1.85	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.50	)%		(0.21	)%		(0.12	)%		(0.22	)%		(0.37	)%
Portfolio Turnover Rate		19	%		32	%		71	%		46	%		33	%

	Year Ended December 31,
Enterprise Small Company Value Fund (Class B)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	7.78		$	7.52		$	8.27		$	7.74		$	7.63
Net Investment Income (Loss)		(0.08	)F		(0.06	)F		(0.06	)F		(0.06	)F		(0.07	)F
Net Realized and Unrealized Gain (Loss) on Investments		(0.88	)		0.35			0.50			1.24			0.40
Total from Investment Operations		(0.96	)		0.29			0.44			1.18			0.33
Dividends from Net Investment Income		—			—			—			—			—
Distributions from Capital Gains		(0.11	)		(0.03	)		(1.19	)		(0.65	)		(0.22	)
Total Distributions		(0.11	)		(0.03	)		(1.19	)		(0.65	)		(0.22	)
Net Asset Value End of Period	$	6.71		$	7.78		$	7.52		$	8.27		$	7.74
Total ReturnD		(12.35	)%		3.89	%		6.00	%		15.47	%		4.44	%
Net Assets End of Period (in thousands)	$	156,569		$	161,373		$	117,125		$	98,472		$	61,929
Ratio of Expenses to Average Net Assets		2.19	%		2.12	%		2.10	%		2.18	%		2.30	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.19	%		2.12	%		2.10	%		2.18	%		2.41	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.04	)%		(0.76	)%		(0.66	)%		(0.78	)%		(0.93	)%
Portfolio Turnover Rate		19	%		32	%		71	%		46	%		33	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

140

Enterprise Small Company Value Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Small Company Value Fund (Class C)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	7.98		$	7.71		$	8.45		$	7.90		$	7.74
Net Investment Income (Loss)		(0.08	)F		(0.06	)F		(0.06	)F		(0.06	)F		(0.07	)F
Net Realized and Unrealized Gain (Loss) on Investments		(0.91	)		0.36			0.51			1.26			0.45
Total from Investment Operations		(0.99	)		0.30			0.45			1.20			0.38
Dividends from Net Investment Income		—			—			—			—			—
Distributions from Capital Gains		(0.11	)		(0.03	)		(1.19	)		(0.65	)		(0.22	)
Total Distributions		(0.11	)		(0.03	)		(1.19	)		(0.65	)		(0.22	)
Net Asset Value End of Period	$	6.88		$	7.98		$	7.71		$	8.45		$	7.90
Total ReturnD		(12.42	)%C		3.93	%		6.00	%		15.42	%		5.03	%
Net Assets End of Period (in thousands)	$	78,811		$	78,665		$	54,638		$	35,265		$	14,239
Ratio of Expenses to Average Net Assets		2.19	%		2.13	%		2.10	%		2.19	%		2.30	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.19	%		2.13	%		2.10	%		2.19	%		2.40	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.04	)%		(0.76	)%		(0.65	)%		(0.76	)%		(0.94	)%
Portfolio Turnover Rate		19	%		32	%		71	%		46	%		33	%

	Year Ended December 31,
Enterprise Small Company Value Fund (Class Y)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	8.47		$	8.09		$	8.73		$	8.06		$	7.81
Net Investment Income (Loss)		0.00	G		0.01	F		0.03	F		0.02	F		0.01	F
Net Realized and Unrealized Gain (Loss) on Investments		(0.97	)		0.40			0.52			1.30			0.46
Total from Investment Operations		(0.97	)		0.41			0.55			1.32			0.47
Dividends from Net Investment Income		—			—			—			—			—
Distributions from Capital Gains		(0.11	)		(0.03	)		(1.19	)		(0.65	)		(0.22	)
Total Distributions		(0.11	)		(0.03	)		(1.19	)		(0.65	)		(0.22	)
Net Asset Value End of Period	$	7.39		$	8.47		$	8.09		$	8.73		$	8.06
Total Return		(11.46	)%		5.10	%		6.95	%		16.60	%		6.13	%
Net Assets End of Period (in thousands)	$	7,029		$	7,067		$	851		$	619		$	277
Ratio of Expenses to Average Net Assets		1.19	%		1.15	%		1.10	%		1.18	%		1.30	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.19	%		1.15	%		1.10	%		1.18	%		1.39	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.04	)%		0.18	%		0.31	%		0.23	%		0.06	%
Portfolio Turnover Rate		19	%		32	%		71	%		46	%		33	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

141

Enterprise Capital Appreciation Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Capital Appreciation Fund (Class A)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	27.23		$	34.21		$	46.61		$	38.59		$	35.54
Net Investment Income (Loss)		(0.25	)F		(0.24	)F		(0.25	)F		(0.47	)F		(0.39	)F
Net Realized and Unrealized Gain (Loss) on Investments		(4.51	)		(6.75	)		(5.44	)		15.43			10.55
Total from Investment Operations		(4.76	)		(6.99	)		(5.69	)		14.96			10.16
Dividends from Net Investment Income		—			—			—			—			—
Distributions from Capital Gains		—			—			(6.71	)		(6.94	)		(7.11	)
Total Distributions		—			—			(6.71	)		(6.94	)		(7.11	)
Redemption Fees		0.00G			0.01			—			—			—
Net Asset Value End of Period	$	22.47		$	27.23		$	34.21		$	46.61		$	38.59
Total ReturnC		(17.48	)%		(20.40	)%		(14.19	)%		39.39	%		30.15	%
Net Assets End of Period (in thousands)	$	96,878		$	128,957		$	176,467		$	181,232		$	131,605
Ratio of Expenses to Average Net Assets (Excluding Expense Offset Arrangements)		1.67	%		1.63	%		1.52	%		1.52	%		1.52	%
Ratio of Expenses to Average Net Assets		1.67	%		1.61	%		1.52	%		1.52	%		1.52	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.95	)%		(0.84	)%		(0.64	)%		(1.15	)%		(1.01	)%
Portfolio Turnover Rate		111	%		111	%		140	%		170	%		76	%

	Year Ended December 31,
Enterprise Capital Appreciation Fund (Class B)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	25.70		$	32.47		$	44.80		$	37.50		$	34.89
Net Investment Income (Loss)		(0.37	)F		(0.37	)F		(0.43	)F		(0.68	)F		(0.58	)F
Net Realized and Unrealized Gain (Loss) on Investments		(4.24	)		(6.40	)		(5.19	)		14.92			10.30
Total from Investment Operations		(4.61	)		(6.77	)		(5.62	)		14.24			9.72
Dividends from Net Investment Income		—			—			—			—			—
Distributions from Capital Gains		—			—			(6.71	)		(6.94	)		(7.11	)
Total Distributions		—			—			(6.71	)		(6.94	)		(7.11	)
Net Asset Value End of Period	$	21.09		$	25.70		$	32.47		$	44.80		$	37.50
Total ReturnD		(17.94	)%		(20.85	)%		(14.65	)%		38.62	%		29.44	%
Net Assets End of Period (in thousands)	$	44,262		$	56,243		$	74,887		$	40,276		$	14,663
Ratio of Expenses to Average Net Assets (Excluding Expense Offset Arrangements)		2.22	%		2.18	%		2.08	%		2.08	%		2.08	%
Ratio of Expenses to Average Net Assets		2.22	%		2.16	%		2.08	%		2.08	%		2.08	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.51	)%		(1.40	)%		(1.17	)%		(1.69	)%		(1.56	)%
Portfolio Turnover Rate		111	%		111	%		140	%		170	%		76	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

142

Enterprise Capital Appreciation Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Capital Appreciation Fund (Class C)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	26.43		$	33.40		$	45.85		$	38.25		$	35.43
Net Investment Income (Loss)		(0.38	)F		(0.38	)F		(0.44	)F		(0.68	)F		(0.57	)F
Net Realized and Unrealized Gain (Loss) on Investments		(4.35	)		(6.59	)		(5.30	)		15.22			10.50
Total from Investment Operations		(4.73	)		(6.97	)		(5.74	)		14.54			9.93
Dividends from Net Investment Income		—			—			—			—			—
Distributions from Capital Gains		—			—			(6.71	)		(6.94	)		(7.11	)
Total Distributions		—			—			(6.71	)		(6.94	)		(7.11	)
Net Asset Value End of Period	$	21.70		$	26.43		$	33.40		$	45.85		$	38.25
Total ReturnD		(17.90	)%C		(20.87	)%		(14.57	)%		38.64	%		29.60	%
Net Assets End of Period (in thousands)	$	15,135		$	17,156		$	23,483		$	6,918		$	1,040
Ratio of Expenses to Average Net Assets (Excluding Expense Offset Arrangements)		2.22	%		2.18	%		2.08	%		2.11	%		2.11	%
Ratio of Expenses to Average Net Assets		2.22	%		2.16	%		2.08	%		2.11	%		2.11	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.51	)%		(1.39	)%		(1.17	)%		(1.69	)%		(1.53	)%
Portfolio Turnover Rate		111	%		111	%		140	%		170	%		76	%

	Year Ended December 31,												For the Period 5/14/98 through 12/31/98
Enterprise Capital Appreciation Fund (Class Y)	2002			2001			2000			1999
Net Asset Value Beginning of Period	$	27.85		$	34.84		$	47.14		$	38.79		$	40.71
Net Investment Income (Loss)		(0.14	)F		(0.11	)F		(0.07	)F		(0.28	)F		(0.15	)F
Net Realized and Unrealized Gain (Loss) on Investments		(4.62	)		(6.88	)		(5.52	)		15.57			5.34
Total from Investment Operations		(4.76	)		(6.99	)		(5.59	)		15.29			5.19
Dividends from Net Investment Income		—			—			—			—			—
Distributions from Capital Gains		—			—			(6.71	)		(6.94	)		(7.11	)
Total Distributions		—			—			(6.71	)		(6.94	)		(7.11	)
Net Asset Value End of Period	$	23.09		$	27.85		$	34.84		$	47.14		$	38.79
Total Return		(17.09	)%		(20.06	)%		(13.77	)%		40.04	%		14.08	%B
Net Assets End of Period (in thousands)	$	970		$	433		$	532		$	428		$	204
Ratio of Expenses to Average Net Assets (Excluding Expense Offset Arrangements)		1.23	%		1.18	%		1.08	%		1.07	%		1.05	%A
Ratio of Expenses to Average Net Assets		1.23	%		1.16	%		1.08	%		1.07	%		1.05	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.56	)%		(0.40	)%		(0.19	)%		(0.69	)%		(0.51	)%A
Portfolio Turnover Rate		111	%		111	%		140	%		170	%		76	%A

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

143

Enterprise Deep Value Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Deep Value Fund (Class A)	Year Ended December 31, 2002			For the Period 5/31/01 through 12/31/01
Net Asset Value Beginning of Period	$	9.93		$	10.00
Net Investment Income (Loss)		0.06	F		0.02	F
Net Realized and Unrealized Gain (Loss) on Investments		(2.34	)		(0.06	)
Total from Investment Operations		(2.28	)		(0.04	)
Dividends from Net Investment Income		(0.05	)		—
Distributions from Capital Gains		(0.01	)		(0.03	)
Total Distributions		(0.06	)		(0.03	)
Net Asset Value End of Period	$	7.59		$	9.93
Total ReturnC		(22.97	)%		(0.41	)%B
Net Assets End of Period (in thousands)	$	6,037		$	4,085
Ratio of Expenses to Average Net Assets		1.50	%		1.50	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.29	%		4.31	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		0.67	%		0.28	%A
Portfolio Turnover Rate		43	%		16	%

Enterprise Deep Value Fund (Class B)	Year Ended December 31, 2002			For the Period 5/31/01 through 12/31/01
Net Asset Value Beginning of Period	$	9.90		$	10.00
Net Investment Income (Loss)		0.01F			(0.02	)F
Net Realized and Unrealized Gain (Loss) on Investments		(2.32	)		(0.05	)
Total from Investment Operations		(2.31	)		(0.07	)
Dividends from Net Investment Income		(0.01	)		—
Distributions from Capital Gains		(0.01	)		(0.03	)
Total Distributions		(0.02	)		(0.03	)
Net Asset Value End of Period	$	7.57		$	9.90
Total ReturnD		(23.35	)%		(0.71	)%B
Net Assets End of Period (in thousands)	$	6,515		$	4,856
Ratio of Expenses to Average Net Assets		2.05	%		2.05	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.86	%		4.87	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		0.12	%		(0.28	)%A
Portfolio Turnover Rate		43	%		16	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

144

Enterprise Deep Value Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Deep Value Fund (Class C)	Year Ended December 31, 2002			For the Period 05/31/01 through 12/31/01
Net Asset Value Beginning of Period	$	9.90		$	10.00
Net Investment Income (Loss)		0.01F			(0.01	)F
Net Realized and Unrealized Gain (Loss) on Investments		(2.32	)		(0.06	)
Total from Investment Operations		(2.31	)		(0.07	)
Dividends from Net Investment Income		(0.01	)		—
Distributions from Capital Gains		(0.01	)		(0.03	)
Total Distributions		(0.02	)		(0.03	)
Net Asset Value End of Period	$	7.57		$	9.90
Total ReturnD		(23.38	)%C		(0.71	)%B
Net Assets End of Period (in thousands)	$	2,374		$	2,039
Ratio of Expenses to Average Net Assets		2.05	%		2.05	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.86	%		4.88	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		0.13	%		(0.26	)%A
Portfolio Turnover Rate		43	%		16	%

Enterprise Deep Value Fund (Class Y)	Year Ended December 31, 2002			For the Period 05/31/01 through 12/31/01
Net Asset Value Beginning of Period	$	9.95		$	10.00
Net Investment Income (Loss)		0.10	F		0.04F
Net Realized and Unrealized Gain (Loss) on Investments		(2.35	)		(0.06	)
Total from Investment Operations		(2.25	)		(0.02	)
Dividends from Net Investment Income		(0.08	)		—
Distributions from Capital Gains		(0.01	)		(0.03	)
Total Distributions		(0.09	)		(0.03	)
Net Asset Value End of Period	$	7.61		$	9.95
Total Return		(22.61	)%		(0.21	)%B
Net Assets End of Period (in thousands)	$	251		$	166
Ratio of Expenses to Average Net Assets		1.05	%		1.05	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.88	%		3.90	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		1.13	%		0.71	%A
Portfolio Turnover Rate		43	%		16	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

145

Enterprise Equity Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Equity Fund (Class A)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	5.50		$	6.81		$	7.26		$	6.47		$	5.96
Net Investment Income (Loss)		(0.06	)F		(0.07	)F		(0.07	)F		(0.01	)F		0.03
Net Realized and Unrealized Gain (Loss) on Investments		(1.58	)		(1.21	)		(0.26	)		1.11			0.53
Total from Investment Operations		(1.64	)		(1.28	)		(0.33	)		1.10			0.56
Dividends from Net Investment Income		—			—			—			—			(0.02	)
Distributions from Capital Gains		—			(0.03	)		(0.12	)		(0.31	)		(0.03	)
Redemption Fees		0.00G			—			—			—			—
Total Distributions		—			(0.03	)		(0.12	)		(0.31	)		(0.05	)
Net Asset Value End of Period	$	3.86		$	5.50		$	6.81		$	7.26		$	6.47
Total ReturnC		(29.82	)%		(18.75	)%		(4.82	)%		17.15	%		9.38	%
Net Assets End of Period (in thousands)	$	34,148		$	55,677		$	54,319		$	8,139		$	6,741
Ratio of Expenses to Average Net Assets		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.78	%		1.70	%		1.79	%		2.55	%		2.73	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.29	)%		(1.21	)%		(0.89	)%		(0.11	)%		0.59	%
Portfolio Turnover Rate		15	%		19	%		27	%		176	%		35	%

	Year Ended December 31,
Enterprise Equity Fund (Class B)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	5.38		$	6.69		$	7.17		$	6.43		$	5.94
Net Investment Income (Loss)		(0.08	)F		(0.10	)F		(0.11	)F		(0.04	)F		—
Net Realized and Unrealized Gain (Loss) on Investments		(1.54	)		(1.18	)		(0.25	)		1.09			0.53
Total from Investment Operations		(1.62	)		(1.28	)		(0.36	)		1.05			0.53
Dividends from Net Investment Income		—			—			—			—			(0.01	)
Distributions from Capital Gains		—			(0.03	)		(0.12	)		(0.31	)		(0.03	)
Total Distributions		—			(0.03	)		(0.12	)		(0.31	)		(0.04	)
Net Asset Value End of Period	$	3.76		$	5.38		$	6.69		$	7.17		$	6.43
Total ReturnD		(30.11	)%		(19.09	)%		(5.30	)%		16.49	%		8.82	%
Net Assets End of Period (in thousands)	$	32,037		$	52,441		$	55,021		$	11,431		$	8,731
Ratio of Expenses to Average Net Assets		2.15	%		2.15	%		2.15	%		2.15	%		2.15	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.34	%		2.25	%		2.35	%		3.10	%		3.29	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.84	)%		(1.76	)%		(1.44	)%		(0.66	)%		0.07	%
Portfolio Turnover Rate		15	%		19	%		27	%		176	%		35	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

146

Enterprise Equity Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Equity Fund (Class C)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	5.39		$	6.69		$	7.17		$	6.44		$	5.94
Net Investment Income (Loss)		(0.08	)F		(0.10	)F		(0.10	)F		(0.04	)F		0.01
Net Realized and Unrealized Gain (Loss) on Investments		(1.55	)		(1.17	)		(0.26	)		1.08			0.53
Total from Investment Operations		(1.63	)		(1.27	)		(0.36	)		1.04			0.54
Dividends from Net Investment Income		—			—			—			—			(0.01	)
Distributions from Capital Gains		—			(0.03	)		(0.12	)		(0.31	)		(0.03	)
Total Distributions		—			(0.03	)		(0.12	)		(0.31	)		(0.04	)
Net Asset Value End of Period	$	3.76		$	5.39		$	6.69		$	7.17		$	6.44
Total ReturnD		(30.24	)%C		(18.94	)%		(5.30	)%		16.30	%		8.98	%
Net Assets End of Period (in thousands)	$	21,557		$	35,995		$	32,620		$	2,144		$	1,504
Ratio of Expenses to Average Net Assets		2.15	%		2.15	%		2.15	%		2.15	%		2.15	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.34	%		2.25	%		2.33	%		3.09	%		3.28	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.84	)%		(1.76	)%		(1.46	)%		(0.64	)%		0.09	%
Portfolio Turnover Rate		15	%		19	%		27	%		176	%		35	%

Enterprise Equity Fund (Class Y)	Year Ended December 31,												For the Period 10/14/98 through 12/31/98
	2002			2001			2000			1999
Net Asset Value Beginning of Period	$	5.57		$	6.85		$	7.26		$	6.43		$	5.86
Net Investment Income (Loss)		(0.04	)F		(0.04	)F		(0.03	)F		0.01	F		0.01
Net Realized and Unrealized Gain (Loss) on Investments		(1.60	)		(1.21	)		(0.26	)		1.13			0.63
Total from Investment Operations		(1.64	)		(1.25	)		(0.29	)		1.14			0.64
Dividends from Net Investment Income		—			—			—			—			(0.04	)
Distributions from Capital Gains		—			(0.03	)		(0.12	)		(0.31	)		(0.03	)
Total Distributions		—			(0.03	)		(0.12	)		(0.31	)		(0.07	)
Net Asset Value End of Period	$	3.93		$	5.57		$	6.85		$	7.26		$	6.43
Total Return		(29.44	)%		(18.21	)%		(4.26	)%		17.89	%		10.93	%B
Net Assets End of Period (in thousands)	$	918		$	1,004		$	376		$	161		$	57
Ratio of Expenses to Average Net Assets		1.15	%		1.15	%		1.15	%		1.15	%		1.13	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.35	%		1.24	%		1.37	%		2.15	%		2.26	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.83	)%		(0.77	)%		(0.43	)%		0.21	%		1.04	%A
Portfolio Turnover Rate		15	%		19	%		27	%		176	%		35	%A

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

147

Enterprise Equity Income Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Equity Income Fund (Class A)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	22.12		$	25.72		$	27.48		$	26.89		$	26.42
Net Investment Income (Loss)		0.19	F		0.20	F		0.22	F		0.22	F		0.36
Net Realized and Unrealized Gain (Loss) on Investments		(3.55	)		(3.24	)		1.10			1.69			2.52
Total from Investment Operations		(3.36	)		(3.04	)		1.32			1.91			2.88
Dividends from Net Investment Income		(0.19	)		(0.18	)		(0.22	)		(0.20	)		(0.35	)
Distributions from Capital Gains		(0.17	)		(0.38	)		(2.86	)		(1.12	)		(2.06	)
Total Distributions		(0.36	)		(0.56	)		(3.08	)		(1.32	)		(2.41	)
Net Asset Value End of Period	$	18.40		$	22.12		$	25.72		$	27.48		$	26.89
Total ReturnC		(15.23	)%		(11.83	)%		5.44	%		7.20	%		11.13	%
Net Assets End of Period (in thousands)	$	60,165		$	79,215		$	95,009		$	111,395		$	111,275
Ratio of Expenses to Average Net Assets		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.67	%		1.58	%		1.52	%		1.51	%		1.58	%
Ratio of Net Investment Income (Loss) to Average Net Assets		0.91	%		0.84	%		0.83	%		0.76	%		1.32	%
Portfolio Turnover Rate		41	%		48	%		33	%		32	%		31	%
Enterprise Equity Income Fund (Class B)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	21.77		$	25.32		$	27.10		$	26.57		$	26.17
Net Investment Income (Loss)		0.07	F		0.07	F		0.07	F		0.06	F		0.20
Net Realized and Unrealized Gain (Loss) on Investments		(3.48	)		(3.18	)		1.09			1.65			2.49
Total from Investment Operations		(3.41	)		(3.11	)		1.16			1.71			2.69
Dividends from Net Investment Income		(0.08	)		(0.06	)		(0.08	)		(0.06	)		(0.23	)
Distributions from Capital Gains		(0.17	)		(0.38	)		(2.86	)		(1.12	)		(2.06	)
Total Distributions		(0.25	)		(0.44	)		(2.94	)		(1.18	)		(2.29	)
Net Asset Value End of Period	$	18.11		$	21.77		$	25.32		$	27.10		$	26.57
Total ReturnD		(15.67	)%		(12.28	)%		4.88	%		6.55	%		10.49	%
Net Assets End of Period (in thousands)	$	30,879		$	38,273		$	40,221		$	44,574		$	33,807
Ratio of Expenses to Average Net Assets		2.05	%		2.05	%		2.05	%		2.05	%		2.05	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.22	%		2.13	%		2.07	%		2.07	%		2.13	%
Ratio of Net Investment Income (Loss) to Average Net Assets		0.36	%		0.29	%		0.28	%		0.20	%		0.78	%
Portfolio Turnover Rate		41	%		48	%		33	%		32	%		31	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

148

Enterprise Equity Income Fund — (Continued)

FINANCIAL HIGHLIGHTS

.FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Equity Income Fund (Class C)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	21.92		$	25.49		$	27.26		$	26.70		$	26.31
Net Investment Income (Loss)		0.07	F		0.07	F		0.07	F		0.06	F		0.21
Net Realized and Unrealized Gain (Loss) on Investments		(3.51	)		(3.20	)		1.10			1.69			2.49
Total from Investment Operations		(3.44	)		(3.13	)		1.17			1.75			2.70
Dividends from Net Investment Income		(0.08	)		(0.06	)		(0.08	)		(0.07	)		(0.25	)
Distributions from Capital Gains		(0.17	)		(0.38	)		(2.86	)		(1.12	)		(2.06	)
Total Distributions		(0.25	)		(0.44	)		(2.94	)		(1.19	)		(2.31	)
Net Asset Value End of Period	$	18.23		$	21.92		$	25.49		$	27.26		$	26.70
Total ReturnD		(15.69	)%C		(12.28	)%		4.89	%		6.64	%		10.47	%
Net Assets End of Period (in thousands)	$	6,829		$	8,093		$	8,391		$	9,338		$	5,639
Ratio of Expenses to Average Net Assets		2.05	%		2.05	%		2.05	%		2.05	%		2.05	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.22	%		2.13	%		2.07	%		2.07	%		2.13	%
Ratio of Net Investment Income (Loss) to Average Net Assets		0.36	%		0.29	%		0.28	%		0.20	%		0.81	%
Portfolio Turnover Rate		41	%		48	%		33	%		32	%		31	%

	Year Ended December 31,												For the Period 1/22/98 through 12/31/98
Enterprise Equity Income Fund (Class Y)	2002			2001			2000			1999
Net Asset Value Beginning of Period	$	22.10		$	25.70		$	27.46		$	26.87		$	26.25
Net Investment Income (Loss)		0.28	F		0.30	F		0.33	F		0.34	F		0.47
Net Realized and Unrealized Gain (Loss) on Investments		(3.55	)		(3.23	)		1.11			1.70			2.69
Total from Investment Operations		(3.27	)		(2.93	)		1.44			2.04			3.16
Dividends from Net Investment Income		(0.28	)		(0.29	)		(0.34	)		(0.33	)		(0.48	)
Distributions from Capital Gains		(0.17	)		(0.38	)		(2.86	)		(1.12	)		(2.06	)
Total Distributions		(0.45	)		(0.67	)		(3.20	)		(1.45	)		(2.54	)
Net Asset Value End of Period	$	18.38		$	22.10		$	25.70		$	27.46		$	26.87
Total Return		(14.85	)%		(11.44	)%		5.94	%		7.69	%		12.26	%B
Net Assets End of Period (in thousands)	$	273		$	321		$	125		$	153		$	112
Ratio of Expenses to Average Net Assets		1.05	%		1.05	%		1.05	%		1.05	%		1.05	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.22	%		1.15	%		1.07	%		1.07	%		1.13	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		1.36	%		1.28	%		1.28	%		1.20	%		1.79	%A
Portfolio Turnover Rate		41	%		48	%		33	%		32	%		31	%A

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

149

Enterprise Growth Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Growth Fund (Class A)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	17.78		$	20.52		$	24.55		$	21.07		$	16.91
Net Investment Income (Loss)		(0.05	)F		(0.06	)F		(0.09	)F		(0.12	)F		(0.11	)F
Net Realized and Unrealized Gain (Loss) on Investments		(4.09	)		(2.68	)		(1.88	)		4.73			5.31
Total from Investment Operations		(4.14	)		(2.74	)		(1.97	)		4.61			5.20
Dividends from Net Investment Income		—			—			—			—			—
Distributions from Capital Gains		—			—			(2.06	)		(1.13	)		(1.04	)
Total Distributions		—			—			(2.06	)		(1.13	)		(1.04	)
Redemption Fees		0.00G			—			—			—			—
Net Asset Value End of Period	$	13.64		$	17.78		$	20.52		$	24.55		$	21.07
Total ReturnC		(23.28	)%		(13.35	)%		(7.94	)%		22.08	%		30.94	%
Net Assets End of Period (in thousands)	$	689,196		$	820,971		$	1,029,590		$	1,268,022		$	827,567
Ratio of Expenses to Average Net Assets		1.58	%		1.49	%		1.41	%		1.40	%		1.48	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.30	)%		(0.36	)%		(0.41	)%		(0.51	)%		(0.58	)%
Portfolio Turnover Rate		43	%		52	%		65	%		38	%		28	%
	Year Ended December 31,
Enterprise Growth Fund (Class B)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	17.04		$	19.76		$	23.84		$	20.62		$	16.66
Net Investment Income (Loss)		(0.13	)F		(0.16	)F		(0.21	)F		(0.24	)F		(0.21	)F
Net Realized and Unrealized Gain (Loss) on Investments		(3.91	)		(2.56	)		(1.81	)		4.59			5.21
Total from Investment Operations		(4.04	)		(2.72	)		(2.02	)		4.35			5.00
Dividends from Net Investment Income		—			—			—			—			—
Distributions from Capital Gains		—			—			(2.06	)		(1.13	)		(1.04	)
Total Distributions		—			—			(2.06	)		(1.13	)		(1.04	)
Net Asset Value End of Period	$	13.00		$	17.04		$	19.76		$	23.84		$	20.62
Total ReturnD		(23.71	)%		(13.77	)%		(8.40	)%		21.30	%		30.20	%
Net Assets End of Period (in thousands)	$	426,757		$	605,432		$	736,423		$	811,706		$	446,473
Ratio of Expenses to Average Net Assets		2.12	%		2.04	%		1.96	%		1.95	%		2.03	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.85	)%		(0.91	)%		(0.95	)%		(1.06	)%		(1.13	)%
Portfolio Turnover Rate		43	%		52	%		65	%		38	%		28	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

150

Enterprise Growth Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Growth Fund (Class C)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	17.27		$	20.04		$	24.14		$	20.87		$	16.85
Net Investment Income (Loss)		(0.13	)F		(0.16	)F		(0.21	)F		(0.24	)F		(0.21	)F
Net Realized and Unrealized Gain (Loss) on Investments		(3.96	)		(2.61	)		(1.83	)		4.64			5.27
Total from Investment Operations		(4.09	)		(2.77	)		(2.04	)		4.40			5.06
Dividends from Net Investment Income		—			—			—			—			—
Distributions from Capital Gains		—			—			(2.06	)		(1.13	)		(1.04	)
Total Distributions		—			—			(2.06	)		(1.13	)		(1.04	)
Net Asset Value End of Period	$	13.18		$	17.27		$	20.04		$	24.14		$	20.87
Total ReturnD		(23.68	)%C		(13.82	)%		(8.38	)%		21.28	%		30.22	%
Net Assets End of Period (in thousands)	$	174,419		$	214,230		$	253,834		$	294,683		$	133,194
Ratio of Expenses to Average Net Assets		2.13	%		2.04	%		1.96	%		1.95	%		2.04	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.85	)%		(0.91	)%		(0.96	)%		(1.07	)%		(1.13	)%
Portfolio Turnover Rate		43	%		52	%		65	%		38	%		28	%
Enterprise Growth Fund (Class Y)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	18.37		$	21.10		$	25.06		$	21.41		$	17.02
Net Investment Income (Loss)		0.02	F		0.02	F		0.01	F		(0.02	)F		(0.02	)F
Net Realized and Unrealized Gain (Loss) on Investments		(4.24	)		(2.75	)		(1.91	)		4.80			5.45
Total from Investment Operations		(4.22	)		(2.73	)		(1.90	)		4.78			5.43
Dividends from Net Investment Income		—			—			—			—			—
Distributions from Capital Gains		—			—			(2.06	)		(1.13	)		(1.04	)
Total Distributions		—			—			(2.06	)		(1.13	)		(1.04	)
Net Asset Value End of Period	$	14.15		$	18.37		$	21.10		$	25.06		$	21.41
Total Return		(22.97	)%		(12.94	)%		(7.49	)%		22.52	%		32.09	%
Net Assets End of Period (in thousands)	$	41,255		$	52,671		$	66,749		$	86,826		$	60,640
Ratio of Expenses to Average Net Assets		1.13	%		1.04	%		0.96	%		0.95	%		1.03	%
Ratio of Net Investment Income (Loss) to Average Net Assets		0.15	%		0.09	%		0.03	%		(0.07	)%		(0.13	)%
Portfolio Turnover Rate		43	%		52	%		65	%		38	%		28	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

151

Enterprise Growth and Income Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Growth and Income Fund (Class A)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	32.88		$	38.55		$	38.57		$	29.01		$	25.19
Net Investment Income (Loss)		0.03	F		0.07	F		0.06	F		0.00	F,G		0.14
Net Realized and Unrealized Gain (Loss) on Investments		(8.80	)		(5.59	)		(0.08	)		9.57			4.00
Total from Investment Operations		(8.77	)		(5.52	)		(0.02	)		9.57			4.14
Dividends from Net Investment Income		—			—			—			—			(0.09	)
Distributions from Capital Gains		—			(0.15	)		—			(0.01	)		(0.23	)
Total Distributions		—			(0.15	)		—			(0.01	)		(0.32	)
Net Asset Value End of Period	$	24.11		$	32.88		$	38.55		$	38.57		$	29.01
Total ReturnC		(26.67	)%		(14.32	)%		(0.05	)%		32.97	%		16.50	%
Net Assets End of Period (in thousands)	$	50,361		$	84,159		$	94,885		$	65,759		$	16,664
Ratio of Expenses to Average Net Assets		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.71	%		1.59	%		1.54	%		1.64	%		1.93	%
Ratio of Net Investment Income (Loss) to Average Net Assets		0.11	%		0.21	%		0.15	%		0.00	%		0.41	%
Portfolio Turnover Rate		17	%		3	%		10	%		3	%		5	%

	Year Ended December 31,
Enterprise Growth and Income Fund (Class B )	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	32.22		$	37.99		$	38.20		$	28.90		$	25.15
Net Investment Income (Loss)		(0.12	)F		(0.12	)F		(0.16	)F		(0.18	)F		0.05
Net Realized and Unrealized Gain (Loss) on Investments		(8.61	)		(5.50	)		(0.05	)		9.49			3.95
Total from Investment Operations		(8.73	)		(5.62	)		(0.21	)		9.31			4.00
Dividends from Net Investment Income		—			—			—			—			(0.02	)
Distributions from Capital Gains		—			(0.15	)		—			(0.01	)		(0.23	)
Total Distributions		—			(0.15	)		—			(0.01	)		(0.25	)
Net Asset Value End of Period	$	23.49		$	32.22		$	37.99		$	38.20		$	28.90
Total ReturnD		(27.09	)%		(14.80	)%		(0.55	)%		32.20	%		15.95	%
Net Assets End of Period (in thousands)	$	73,049		$	118,866		$	124,127		$	74,597		$	21,891
Ratio of Expenses to Average Net Assets		2.05	%		2.05	%		2.05	%		2.05	%		2.05	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.26	%		2.14	%		2.09	%		2.19	%		2.48	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.43	)%		(0.35	)%		(0.40	)%		(0.56	)%		(0.17	)%
Portfolio Turnover Rate		17	%		3	%		10	%		3	%		5	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

152

Enterprise Growth and Income Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Growth and Income Fund (Class C)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	32.25		$	38.03		$	38.24		$	28.91		$	25.15
Net Investment Income (Loss)		(0.12	)F		(0.12	)F		(0.16	)F		(0.19	)F		0.06
Net Realized and Unrealized Gain (Loss) on Investments		(8.61	)		(5.51	)		(0.05	)		9.53			3.94
Total from Investment Operations		(8.73	)		(5.63	)		(0.21	)		9.34			4.00
Dividends from Net Investment Income		—			—			—			—			(0.01	)
Distributions from Capital Gains		—			(0.15	)		—			(0.01	)		(0.23	)
Total Distributions		—			(0.15	)		—			(0.01	)		(0.24	)
Net Asset Value End of Period	$	23.52		$	32.25		$	38.03		$	38.24		$	28.91
Total ReturnD		(27.07	)%C		(14.81	)%		(0.55	)%		32.29	%		15.95	%
Net Assets End of Period (in thousands)	$	13,380		$	22,263		$	22,239		$	13,710		$	4,654
Ratio of Expenses to Average Net Assets		2.05	%		2.05	%		2.05	%		2.05	%		2.05	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.26	%		2.14	%		2.09	%		2.20	%		2.49	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.43	)%		(0.35	)%		(0.40	)%		(0.58	)%		(0.16	)%
Portfolio Turnover Rate		17	%		3	%		10	%		3	%		5	%

	Year Ended December 31,
Enterprise Growth and Income Fund (Class Y)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	33.50		$	39.08		$	38.91		$	29.13		$	25.24
Net Investment Income (Loss)		0.16	F		0.23	F		0.23	F		0.14	F		0.29
Net Realized and Unrealized Gain (Loss) on Investments		(8.99	)		(5.66	)		(0.06	)		9.65			4.00
Total from Investment Operations		(8.83	)		(5.43	)		0.17			9.79			4.29
Dividends from Net Investment Income		—			—			—			—			(0.17	)
Distributions from Capital Gains		—			(0.15	)		—			(0.01	)		(0.23	)
Total Distributions		—			(0.15	)		—			(0.01	)		(0.40	)
Net Asset Value End of Period	$	24.67		$	33.50		$	39.08		$	38.91		$	29.13
Total Return		(26.36	)%		(13.90	)%		0.44	%		33.59	%		17.08	%
Net Assets End of Period (in thousands)	$	10,011		$	13,217		$	16,892		$	17,116		$	18,310
Ratio of Expenses to Average Net Assets		1.05	%		1.05	%		1.05	%		1.05	%		1.05	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.26	%		1.14	%		1.09	%		1.18	%		1.48	%
Ratio of Net Investment Income (Loss) to Average Net Assets		0.56	%		0.66	%		0.58	%		0.41	%		0.89	%
Portfolio Turnover Rate		17	%		3	%		10	%		3	%		5	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

153

Enterprise International Growth Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise International Growth Fund (Class A)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	12.82		$	18.35		$	23.81		$	18.89		$	16.71
Net Investment Income (Loss)		0.04	F		(0.07	)F		(0.16	)F		(0.11	)F		0.06
Net Realized and Unrealized Gain (Loss) on Investments		(2.58	)		(5.49	)		(4.53	)		7.37			2.32
Total from Investment Operations		(2.54	)		(5.56	)		(4.69	)		7.26			2.38
Dividends from Net Investment Income		—			—			—			(0.16	)		(0.05	)
Distributions from Capital Gains		—			—			(0.77	)		(2.18	)		(0.15	)
Total Distributions		—			—			(0.77	)		(2.34	)		(0.20	)
Redemption Fees		0.02			0.03			—			—			—
Net Asset Value End of Period	$	10.30		$	12.82		$	18.35		$	23.81		$	18.89
Total ReturnC		(19.66	)%		(30.14	)%		(19.75	)%		39.76	%		14.28	%
Net Assets End of Period (in thousands)	$	23,226		$	34,589		$	49,770		$	55,426		$	41,458
Ratio of Expenses to Average Net Assets		1.85	%		1.96	%		1.85	%		1.94	%		2.00	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.10	%		1.96	%		1.85	%		1.94	%		2.11	%
Ratio of Net Investment Income (Loss) to Average Net Assets		0.35	%		(0.50	)%		(0.76	)%		(0.53	)%		0.30	%
Portfolio Turnover Rate		182	%		99	%		66	%		131	%		52	%

Enterprise International Growth Fund (Class B)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	12.40		$	17.89		$	23.40		$	18.62		$	16.53
Net Investment Income (Loss)		(0.02	)F		(0.16	)F		(0.27	)F		(0.21	)F		(0.04	)
Net Realized and Unrealized Gain (Loss) on Investments		(2.49	)		(5.33	)		(4.47	)		7.23			2.28
Total from Investment Operations		(2.51	)		(5.49	)		(4.74	)		7.02			2.24
Dividends from Net Investment Income		—			—			—			(0.06	)		—
Distributions from Capital Gains		—			—			(0.77	)		(2.18	)		(0.15	)
Total Distributions		—			—			(0.77	)		(2.24	)		(0.15	)
Net Asset Value End of Period	$	9.89		$	12.40		$	17.89		$	23.40		$	18.62
Total ReturnD		(20.24	)%		(30.69	)%B		(20.32	)%		39.02	%		13.57	%
Net Assets End of Period (in thousands)	$	16,905		$	21,738		$	26,569		$	23,475		$	16,008
Ratio of Expenses to Average Net Assets		2.40	%		2.53	%		2.40	%		2.48	%		2.55	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.65	%		2.53	%		2.40	%		2.48	%		2.66	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.21	)%		(1.13	)%		(1.32	)%		(1.10	)%		(0.28	)%
Portfolio Turnover Rate		182	%		99	%		66	%		131	%		52	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

154

Enterprise International Growth Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise International Growth Fund (Class C)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	12.50		$	18.04		$	23.59		$	18.77		$	16.66
Net Investment Income (Loss)		(0.02	)F		(0.15	)F		(0.27	)F		(0.22	)F		(0.04	)
Net Realized and Unrealized Gain (Loss) on Investments		(2.52	)		(5.39	)		(4.51	)		7.29			2.31
Total from Investment Operations		(2.54	)		(5.54	)		(4.78	)		7.07			2.27
Dividends from Net Investment Income		—			—			—			(0.07	)		(0.01	)
Distributions from Capital Gains		—			—			(0.77	)		(2.18	)		(0.15	)
Total Distributions		—			—			(0.77	)		(2.25	)		(0.16	)
Redemption Fees		0.01			—			—			—			—
Net Asset Value End of Period	$	9.97		$	12.50		$	18.04		$	23.59		$	18.77
Total ReturnD		(20.24	)%C		(30.71	)%		(20.33	)%		38.95	%		13.64	%
Net Assets End of Period (in thousands)	$	6,375		$	8,512		$	7,750		$	5,771		$	3,498
Ratio of Expenses to Average Net Assets		2.40	%		2.52	%		2.40	%		2.48	%		2.55	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.65	%		2.52	%		2.40	%		2.48	%		2.67	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.19	)%		(1.12	)%		(1.32	)%		(1.12	)%		(0.35	)%
Portfolio Turnover Rate		182	%		99	%		66	%		131	%		52	%

Enterprise International Growth Fund (Class Y)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	12.90		$	18.41		$	23.82		$	18.88		$	16.71
Net Investment Income (Loss)		0.09F			(0.02	)F		(0.06	)F		(0.03	)F		0.14
Net Realized and Unrealized Gain (Loss) on Investments		(2.61	)		(5.49	)		(4.58	)		7.40			2.32
Total from Investment Operations		(2.52	)		(5.51	)		(4.64	)		7.37			2.46
Dividends from Net Investment Income		—			—			—			(0.25	)		(0.14	)
Distributions from Capital Gains		—			—			(0.77	)		(2.18	)		(0.15	)
Total Distributions		—			—			(0.77	)		(2.25	)		(0.16	)
Redemption Fees		0.01			—			—			—			—
Net Asset Value End of Period	$	10.39		$	12.90		$	18.41		$	23.82		$	18.88
Total Return		(19.46	)%		(29.93	)%		(19.53	)%		40.39	%		14.73	%
Net Assets End of Period (in thousands)	$	10,616		$	13,797		$	20,515		$	20,738		$	13,379
Ratio of Expenses to Average Net Assets		1.40	%		1.53	%		1.39	%		1.48	%		1.55	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.65	%		1.53	%		1.39	%		1.48	%		1.66	%
Ratio of Net Investment Income (Loss) to Average Net Assets		0.80	%		(0.12	)%		0.30	%		(0.14	)%		0.75	%
Portfolio Turnover Rate		182	%		99	%		66	%		131	%		52	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

155

Enterprise Global Financial Services Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Global Financial Services Fund (Class A)	Year Ended December 31,												For the Period 10/1/98 through 12/31/98
	2002			2001			2000			1999
Net Asset Value Beginning of Period	$	5.82		$	6.62		$	5.58		$	6.05		$	5.00
Net Investment Income (Loss)		0.09	F		0.04	F		0.05	F		0.06	F		0.01
Net Realized and Unrealized Gain (Loss) on Investments		(0.63	)		(0.60	)		1.17			(0.37	)		1.04
Total from Investment Operations		(0.54	)		(0.56	)		1.22			(0.31	)		1.05
Dividends from Net Investment Income		(0.08	)		(0.05	)		(0.05	)		(0.04	)		—
Distributions from Capital Gains		(0.09	)		(0.19	)		(0.13	)		(0.12	)		—
Total Distributions		(0.17	)		(0.24	)		(0.18	)		(0.16	)		—
Net Asset Value End of Period	$	5.11		$	5.82		$	6.62		$	5.58		$	6.05
Total ReturnC		(9.21	)%		(8.37	)%		21.90	%		(5.01	)%		21.00	%B
Net Assets End of Period (in thousands)	$	8,760		$	13,715		$	15,674		$	5,179		$	1,426
Ratio of Expenses to Average Net Assets		1.75	%		1.75	%		1.75	%		1.75	%		1.75	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.99	%		1.92	%		2.03	%		2.92	%		6.58	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		1.55	%		0.67	%		0.90	%		1.00	%		0.16	%A
Portfolio Turnover Rate		9	%		56	%		26	%		16	%		2	%

Enterprise Global Financial Services Fund (Class B)	Year Ended December 31,												For the Period 10/1/98 through 12/31/98
	2002			2001			2000			1999
Net Asset Value Beginning of Period	$	5.78		$	6.57		$	5.55		$	6.03		$	5.00
Net Investment Income (Loss)		0.05	F		0.01	F		0.02	F		0.03	F		0.01
Net Realized and Unrealized Gain (Loss) on Investments		(0.61	)		(0.59	)		1.15			(0.37	)		1.02
Total from Investment Operations		(0.56	)		(0.58	)		1.17			(0.34	)		1.03
Dividends from Net Investment Income		(0.05	)		(0.02	)		(0.02	)		(0.02	)		—
Distributions from Capital Gains		(0.09	)		(0.19	)		(0.13	)		(0.12	)		—
Total Distributions		(0.14	)		(0.21	)		(0.15	)		(0.14	)		—
Net Asset Value End of Period	$	5.08		$	5.78		$	6.57		$	5.55		$	6.03
Total ReturnD		(9.58	)%		(8.84	)%		21.18	%		(5.50	)%		20.60	%B
Net Assets End of Period (in thousands)	$	7,725		$	9,429		$	10,252		$	4,661		$	1,023
Ratio of Expenses to Average Net Assets		2.30	%		2.30	%		2.30	%		2.30	%		2.30	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.55	%		2.47	%		2.61	%		3.49	%		7.50	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		0.96	%		0.14	%		0.31	%		0.44	%		(0.49	)%A
Portfolio Turnover Rate		9	%		56	%		26	%		16	%		2	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

156

Enterprise Global Financial Services Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Global Financial Services Fund (Class C)	Year Ended December 31,												For the Period 10/1/98 through 12/31/98
	2002			2001			2000			1999
Net Asset Value Beginning of Period	$	5.78		$	6.57		$	5.56		$	6.03		$	5.00
Net Investment Income (Loss)		0.06	F		0.01	F		0.02	F		0.02	F		0.01
Net Realized and Unrealized Gain (Loss) on Investments		(0.63	)		(0.59	)		1.15			(0.34	)		1.02
Total from Investment Operations		(0.57	)		(0.58	)		1.17			(0.32	)		1.03
Dividends from Net Investment Income		(0.05	)		(0.02	)		(0.03	)		(0.03	)		—
Distributions from Capital Gains		(0.09	)		(0.19	)		(0.13	)		(0.12	)		—
Total Distributions		(0.14	)		(0.21	)		(0.16	)		(0.15	)		—
Net Asset Value End of Period	$	5.07		$	5.78		$	6.57		$	5.56		$	6.03
Total ReturnD		(9.80	)%C		(8.73	)%		21.07	%		(5.31	)%		20.60	%B
Net Assets End of Period (in thousands)	$	1,553		$	2,056		$	1,903		$	718		$	218
Ratio of Expenses to Average Net Assets		2.30	%		2.30	%		2.30	%		2.30	%		2.30	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.54	%		2.47	%		2.59	%		3.50	%		6.42	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		0.98	%		0.10	%		0.27	%		0.39	%		(0.33	)%A
Portfolio Turnover Rate		9	%		56	%		26	%		16	%		2	%

Enterprise Global Financial Services Fund (Class Y)	Year Ended December 31,												For the Period 10/1/98 through 12/31/98
	2002			2001			2000			1999
Net Asset Value Beginning of Period	$	5.84		$	6.64		$	5.59		$	6.05		$	5.00
Net Investment Income (Loss)		0.11	F		0.07	F		0.08	F		0.10	F		0.01
Net Realized and Unrealized Gain (Loss) on Investments		(0.63	)		(0.60	)		1.17			(0.38	)		1.04
Total from Investment Operations		(0.52	)		(0.53	)		1.25			(0.28	)		1.05
Dividends from Net Investment Income		(0.11	)		(0.08	)		(0.07	)		(0.06	)		—
Distributions from Capital Gains		(0.09	)		(0.19	)		(0.13	)		(0.12	)		—
Total Distributions		(0.20	)		(0.27	)		(0.20	)		(0.18	)		—
Net Asset Value End of Period	$	5.12		$	5.84		$	6.64		$	5.59		$	6.05
Total Return		(8.80	)%		(7.89	)%		22.39	%		(4.51	)%		21.00	%B
Net Assets End of Period (in thousands)	$	5,754		$	6,258		$	6,770		$	5,477		$	5,697
Ratio of Expenses to Average Net Assets		1.30	%		1.30	%		1.30	%		1.30	%		1.30	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.55	%		1.47	%		1.65	%		2.57	%		5.09	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		1.96	%		1.12	%		1.36	%		1.63	%		0.61	%A
Portfolio Turnover Rate		9	%		56	%		26	%		16	%		2	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

157

Enterprise Global Health Care Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Global Health Care Fund (Class A)	2002			2001			For the Period 10/31/00 through 12/31/00
Net Asset Value Beginning of Period	$	8.54		$	9.32		$	10.00
Net Investment Income (Loss)		(0.09	)F		(0.09	)F		(0.04	)F
Net Realized and Unrealized Gain (Loss) on Investments		(2.94	)		(0.69	)		(0.64	)
Total from Investment Operations		(3.03	)		(0.78	)		(0.68	)
Dividends from Net Investment Income		—			—			—
Distributions from Capital Gains		—			—			—
Total Distributions		0.00	G		—			—
Net Asset Value End of Period	$	5.51		$	8.54		$	9.32
Total ReturnC		(35.48	)%		(8.37	)%		(6.80	)%B
Net Assets End of Period (in thousands)	$	4,601		$	7,903		$	4,480
Ratio of Expenses to Average Net Assets		1.85	%		1.85	%		1.85	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement and Expense Offset Arrangements)		2.65	%		2.60	%		8.65	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.32	)%		(1.15	)%		(0.47	)%A
Portfolio Turnover Rate		453	%		418	%		34	%

	Year Ended December 31,
Enterprise Global Health Care Fund (Class B)	2002			2001			For the Period 10/31/00 through 12/31/00
Net Asset Value Beginning of Period	$	8.46		$	9.30		$	10.00
Net Investment Income (Loss)		(0.12	)F		(0.14	)F		(0.07	)F
Net Realized and Unrealized Gain (Loss) on Investments		(2.91	)		(0.70	)		(0.63	)
Total from Investment Operations		(3.03	)		(0.84	)		(0.70	)
Dividends from Net Investment Income		—			—			—
Distributions from Capital Gains		—			—			—
Total Distributions		—			—			—
Net Asset Value End of Period	$	5.43		$	8.46		$	9.30
Total ReturnD		(35.82	)%		(9.03	)%		(7.00	)%B
Net Assets End of Period (in thousands)	$	5,434		$	8,619		$	3,662
Ratio of Expenses to Average Net Assets		2.40	%		2.40	%		2.40	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement and Expense Offset Arrangements)		3.20	%		3.13	%		9.20	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.86	)%		(1.71	)%		(1.02	)%A
Portfolio Turnover Rate		453	%		418	%		34	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

158

Enterprise Global Health Care Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,						For the Period 10/31/00 through 12/31/00
Enterprise Global Health Care Fund (Class C)	2002			2001
Net Asset Value Beginning of Period	$	8.47		$	9.30		$	10.00
Net Investment Income (Loss)		(0.12	)F		(0.14	)F		(0.07	)F
Net Realized and Unrealized Gain (Loss) on Investments		(2.92	)		(0.69	)		(0.63	)
Total from Investment Operations		(3.04	)		(0.83	)		(0.70	)
Dividends from Net Investment Income		—			—			—
Distributions from Capital Gains		—			—			—
Total Distributions		—			—			—
Net Asset Value End of Period	$	5.43		$	8.47		$	9.30
Total ReturnD		(35.89	)%C		(8.92	)%		(7.00	)%B
Net Assets End of Period (in thousands)	$	1,253		$	3,231		$	1,885
Ratio of Expenses to Average Net Assets		2.40	%		2.40	%		2.40	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement and Expense Offset Arrangements)		3.18	%		3.16	%		9.20	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.89	)%		(1.70	)%		(1.02	)%A
Portfolio Turnover Rate		453	%		418	%		34	%

	Year Ended December 31,						For the Period 10/31/00 through 12/31/00
Enterprise Global Health Care Fund (Class Y)	2002			2001
Net Asset Value Beginning of Period	$	8.57		$	9.33		$	10.00
Net Investment Income (Loss)		(0.06	)F		(0.06	)F		0.00	F
Net Realized and Unrealized Gain (Loss) on Investments		(2.96	)		(0.70	)		(0.67	)
Total from Investment Operations		(3.02	)		(0.76	)		(0.67	)
Dividends from Net Investment Income		—			—			—
Distributions from Capital Gains		—			—			—
Total Distributions		—			—			—
Net Asset Value End of Period	$	5.55		$	8.57		$	9.33
Total Return		(35.24	)%		(8.15	)%		(6.70	)%B
Net Assets End of Period (in thousands)	$	181		$	269		$	281
Ratio of Expenses to Average Net Assets		1.40	%		1.40	%		1.40	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement and Expense Offset Arrangements)		2.21	%		2.18	%		8.20	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.85	)%		(0.68	)%		(0.03	)%A
Portfolio Turnover Rate		453	%		418	%		34	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

159

Enterprise Global Socially Responsive Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,						For the Period 9/29/00 through 12/31/00
Enterprise Global Socially Responsive Fund (Class A)	2002			2001
Net Asset Value Beginning of Period	$	8.69		$	9.75		$	10.00
Net Investment Income (Loss)		0.00	F		0.01	F		0.08	F
Net Realized and Unrealized Gain (Loss) on Investments		(1.63	)		(1.05	)		(0.33	)
Total from Investment Operations		(1.63	)		(1.04	)		(0.25	)
Dividends from Net Investment Income		—			—			—
Distributions from Capital Gains		—			(0.02	)		—
Redemption Fees		0.03			—			—
Total Distributions		—			(0.02	)		—
Net Asset Value End of Period	$	7.09		$	8.69		$	9.75
Total ReturnC		(18.41	)%		(10.70	)%		(2.50	)%B
Net Assets End of Period (in thousands)	$	2,314		$	2,053		$	1,103
Ratio of Expenses to Average Net Assets		1.75	%		1.75	%		1.75	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		3.55	%		4.05	%		13.03	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		0.01	%		0.10	%		0.88	%A
Portfolio Turnover Rate		32	%		44	%		16	%

	Year Ended December 31,						For the Period 9/29/00 through 12/31/00
Enterprise Global Socially Responsive Fund (Class B)	2002			2001
Net Asset Value Beginning of Period	$	8.62		$	9.74		$	10.00
Net Investment Income (Loss)		(0.04	)F		(0.04	)F		0.03	F
Net Realized and Unrealized Gain (Loss) on Investments		(1.60	)		(1.06	)		(0.29	)
Total from Investment Operations		(1.64	)		(1.10	)		(0.26	)
Dividends from Net Investment Income		—			—			—
Distributions from Capital Gains		—			(0.02	)		—
Redemption Fees		0.02			—			—
Total Distributions		—			(0.02	)		—
Net Asset Value End of Period	$	7.00		$	8.62		$	9.74
Total ReturnD		(18.79	)%		(11.33	)%		(2.60	)%B
Net Assets End of Period (in thousands)	$	1,057		$	1,036		$	588
Ratio of Expenses to Average Net Assets		2.30	%		2.30	%		2.30	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		4.08	%		4.61	%		13.58	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.53	)%		(0.43	)%		0.33	%A
Portfolio Turnover Rate		32	%		44	%		16	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

160

Enterprise Global Socially Responsive Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Global Socially Responsive Fund (Class C)	2002			2001			For the Period 9/29/00 through 12/31/00
Net Asset Value Beginning of Period	$	8.62		$	9.74		$	10.00
Net Investment Income (Loss)		(0.04	)F		(0.04	)F		0.04F
Net Realized and Unrealized Gain (Loss) on Investments		(1.61	)		(1.06	)		(0.30	)
Total from Investment Operations		(1.65	)		(1.10	)		(0.26	)
Dividends from Net Investment Income		—			—			—
Distributions from Capital Gains		—			(0.02	)		—
Redemption Fees		0.02			—			—
Total Distributions		—			(0.02	)		—
Net Asset Value End of Period	$	6.99		$	8.62		$	9.74
Total ReturnD		(18.91	)%C		(11.33	)%		(2.60	)%B
Net Assets End of Period (in thousands)	$	632		$	475		$	361
Ratio of Expenses to Average Net Assets		2.30	%		2.30	%		2.30	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		4.14	%		4.63	%		13.58	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.57	)%		(0.43	)%		0.45	%A
Portfolio Turnover Rate		32	%		44	%		16	%

	Year Ended December 31,
Enterprise Global Socially Responsive Fund (Class Y)	2002			2001			For the Period 9/29/00 through 12/31/00
Net Asset Value Beginning of Period	$	8.74		$	9.76		$	10.00
Net Investment Income (Loss)		0.03	F		0.05	F		0.12F
Net Realized and Unrealized Gain (Loss) on Investments		(1.62	)		(1.05	)		(0.36	)
Total from Investment Operations		(1.59	)		(1.00	)		(0.24	)
Dividends from Net Investment Income		—			—			—
Distributions from Capital Gains		—			(0.02	)		—
Redemption Fees		0.02			—			—
Total Distributions		—			(0.02	)		—
Net Asset Value End of Period	$	7.17		$	8.74		$	9.76
Total Return		(17.96	)%		(10.28	)%		(2.40	)%B
Net Assets End of Period (in thousands)	$	126		$	120		$	98
Ratio of Expenses to Average Net Assets		1.30	%		1.30	%		1.30	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		3.12	%		3.63	%		12.58	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		0.44	%		0.57	%		1.59	%A
Portfolio Turnover Rate		32	%		44	%		16	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

161

Enterprise Mergers and Acquisitions Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Mergers and Acquisitions Fund (Class A)	Year Ended December 31, 2002			For the Period 02/28/01 through 12/31/2001
Net Asset Value Beginning of Period	$	10.10		$	10.00
Net Investment Income (Loss)		(0.02	)F		0.01	F
Net Realized and Unrealized Gain (Loss) on Investments		(0.31	)		0.21
Total from Investment Operations		(0.33	)		0.22
Dividends from Net Investment Income		—			—
Distributions from Capital Gains		(0.07	)		(0.12	)
Total Distributions		(0.07	)		(0.12	)
Net Asset Value End of Period	$	9.70		$	10.10
Total ReturnC		(3.28	)%		2.22	%B
Net Assets End of Period (in thousands)	$	31,022		$	23,876
Ratio of Expenses to Average Net Assets		1.83	%		1.90	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.83	%		2.11	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.16	)%		0.16	%A
Portfolio Turnover Rate		184	%		238	%
Enterprise Mergers and Acquisitions Fund (Class B)	Year Ended December 31, 2002			For the Period 02/28/01 through 12/31/2001
Net Asset Value Beginning of Period	$	10.05		$	10.00
Net Investment Income (Loss)		(0.07	)F		(0.03	)F
Net Realized and Unrealized Gain (Loss) on Investments		(0.32	)		0.20
Total from Investment Operations		(0.39	)		0.17
Dividends from Net Investment Income		—			—
Distributions from Capital Gains		(0.07	)		(0.12	)
Total Distributions		(0.07	)		(0.12	)
Net Asset Value End of Period	$	9.59		$	10.05
Total ReturnD		(3.89	)%		1.72	%B
Net Assets End of Period (in thousands)	$	23,554		$	21,195
Ratio of Expenses to Average Net Assets		2.38	%		2.45	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.38	%		2.66	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.71	)%		(0.37	)%A
Portfolio Turnover Rate		184	%		238	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

162

Enterprise Mergers and Acquisitions Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Mergers and Acquisitions Fund (Class C)	Year Ended December 31, 2002			For the Period 02/28/01 through 12/31/2001
Net Asset Value Beginning of Period	$	10.05		$	10.00
Net Investment Income (Loss)		(0.07	)F		(0.03	)F
Net Realized and Unrealized Gain (Loss) on Investments		(0.31	)		0.20
Total from Investment Operations		(0.38	)		0.17
Dividends from Net Investment Income		—			—
Distributions from Capital Gains		(0.07	)		(0.12	)
Total Distributions		(0.07	)		(0.12	)
Net Asset Value End of Period	$	9.60		$	10.05
Total ReturnD		(3.79	)%C		1.72	%B
Net Assets End of Period (in thousands)	$	18,229		$	11,543
Ratio of Expenses to Average Net Assets		2.39	%		2.45	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.39	%		2.66	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.72	)%		(0.37	)%A
Portfolio Turnover Rate		184	%		238	%

Enterprise Mergers and Acquisitions Fund (Class Y)	Year Ended December 31, 2002			For the Period 02/28/01 through 12/31/2001
Net Asset Value Beginning of Period	$	10.13		$	10.00
Net Investment Income (Loss)		0.03	F		0.06	F
Net Realized and Unrealized Gain (Loss) on Investments		(0.32	)		0.19
Total from Investment Operations		(0.29	)		0.25
Dividends from Net Investment Income		—			—
Distributions from Capital Gains		(0.07	)		(0.12	)
Total Distributions		(0.07	)		(0.12	)
Net Asset Value End of Period	$	9.77		$	10.13
Total Return		(2.87	)%		2.52	%B
Net Assets End of Period (in thousands)	$	1,014		$	724
Ratio of Expenses to Average Net Assets		1.38	%		1.45	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.38	%		1.66	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		0.30	%		0.68	%A
Portfolio Turnover Rate		184	%		238	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

163

Enterprise Technology Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Technology Fund (Class A)	Year Ended December 31,									For the Period 7/1/99 through 12/31/99
	2002			2001			2000
Net Asset Value Beginning of Period	$	10.22		$	15.47		$	31.72		$	10.00
Net Investment Income (Loss)		(0.12	)F		(0.17	)F		(0.47	)F		(0.12	)F
Net Realized and Unrealized Gain (Loss) on Investments		(4.82	)		(5.08	)		(15.68	)		22.19
Total from Investment Operations		(4.94	)		(5.25	)		(16.15	)		22.07
Dividends from Net Investment Income		—			—			—			—
Distributions from Capital Gains		—			—			(0.10	)		(0.35	)
Total Distributions		—			—			(0.10	)		(0.35	)
Redemption Fees		0.00G			0.00	G		—			—
Net Asset Value End of Period	$	5.28		$	10.22		$	15.47		$	31.72
Total ReturnC		(48.34	)%		(33.94	)%		(51.10	)%		220.79	%B
Net Assets End of Period (in thousands)	$	18,684		$	49,028		$	90,800		$	119,283
Ratio of Expenses to Average Net Assets		1.90	%		1.90	%		1.86	%		1.90	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.56	%		2.11	%		1.86	%		2.04	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.68	)%		(1.36	)%		(1.64	)%		(1.28	)%A
Portfolio Turnover Rate		322	%		331	%		256	%		31	%

Enterprise Technology Fund (Class B)	Year Ended December 31,									For the Period 7/1/99 through 12/31/99
	2002			2001			2000
Net Asset Value Beginning of Period	$	10.10		$	15.36		$	31.65		$	10.00
Net Investment Income (Loss)		(0.15	)F		(0.23	)F		(0.62	)F		(0.18	)F
Net Realized and Unrealized Gain (Loss) on Investments		(4.76	)		(5.03	)		(15.57	)		22.18
Total from Investment Operations		(4.91	)		(5.26	)		(16.19	)		22.00
Dividends from Net Investment Income		—			—			—			—
Distributions from Capital Gains		—			—			(0.10	)		(0.35	)
Total Distributions		—			—			(0.10	)		(0.35	)
Redemption Fees		—			—			—			—
Net Asset Value End of Period	$	5.19		$	10.10		$	15.36		$	31.65
Total ReturnD		(48.61	)%		(34.24	)%		(51.34	)%		220.09	%B
Net Assets End of Period (in thousands)	$	26,016		$	57,356		$	98,049		$	107,176
Ratio of Expenses to Average Net Assets		2.45	%		2.45	%		2.41	%		2.45	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		3.12	%		2.66	%		2.41	%		2.56	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(2.23	)%		(1.91	)%		(2.20	)%		(1.85	)%A
Portfolio Turnover Rate		322	%		331	%		256	%		31	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

164

Enterprise Technology Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,									For the Period 7/1/99 through 12/31/99
Enterprise Technology Fund (Class C)	2002			2001			2000
Net Asset Value Beginning of Period	$	10.09		$	15.35		$	31.65		$	10.00
Net Investment Income (Loss)		(0.15	)F		(0.23	)F		(0.63	)F		(0.17	)F
Net Realized and Unrealized Gain (Loss) on Investments		(4.75	)		(5.03	)		(15.57	)		22.17
Total from Investment Operations		(4.90	)		(5.26	)		(16.20	)		22.00
Dividends from Net Investment Income		—			—			—			—
Distributions from Capital Gains		—			—			(0.10	)		(0.35	)
Total Distributions		—			—			(0.10	)		(0.35	)
Redemption Fees		—			—			—			—
Net Asset Value End of Period	$	5.19		$	10.09		$	15.35		$	31.65
Total ReturnD		(48.56	)%C		(34.27	)%		(51.37	)%		220.09	%B
Net Assets End of Period (in thousands)	$	6,211		$	15,021		$	31,162		$	35,448
Ratio of Expenses to Average Net Assets		2.45	%		2.45	%		2.41	%		2.45	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		3.11	%		2.66	%		2.41	%		2.57	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(2.23	)%		(1.90	)%		(2.20	)%		(1.84	)%A
Portfolio Turnover Rate		322	%		331	%		256	%		31	%
	Year Ended December 31,									For the Period 7/1/99 through 12/31/99
Enterprise Technology Fund (Class Y)	2002			2001			2000
Net Asset Value Beginning of Period	$	10.35		$	15.60		$	31.82		$	10.00
Net Investment Income (Loss)		(0.08	)F		(0.11	)F		(0.34	)F		(0.06	)F
Net Realized and Unrealized Gain (Loss) on Investments		(4.89	)		(5.14	)		(15.78	)		22.23
Total from Investment Operations		(4.97	)		(5.25	)		(16.12	)		22.17
Dividends from Net Investment Income		—			—			—			—
Distributions from Capital Gains		—			—			(0.10	)		(0.35	)
Total Distributions		—			—			(0.10	)		(0.35	)
Redemption Fees		—			—			—			—
Net Asset Value End of Period	$	5.38		$	10.35		$	15.60		$	31.82
Total Return		(48.02	)%		(33.65	)%		(50.84	)%		221.79	%B
Net Assets End of Period (in thousands)	$	341		$	430		$	605		$	1,381
Ratio of Expenses to Average Net Assets		1.45	%		1.45	%		1.39	%		1.45	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.12	%		1.66	%		1.39	%		1.79	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.20	)%		(0.93	)%		(1.16	)%		(0.68	)%A
Portfolio Turnover Rate		322	%		331	%		256	%		31	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

165

Enterprise Managed Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Managed Fund (Class A)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	7.08		$	8.03		$	9.06		$	9.26		$	9.25
Net Investment Income (Loss)		0.01	F		(0.01	)F		0.06	F		0.06	F		0.06
Net Realized and Unrealized Gain (Loss) on Investments		(1.55	)		(0.94	)		(0.03	)		0.61			0.58
Total from Investment Operations		(1.54	)		(0.95	)		0.03			0.67			0.64
Dividends from Net Investment Income		—			—			(0.07	)		(0.06	)		(0.05	)
Distributions from Capital Gains		—			—			(0.99	)		(0.81	)		(0.58	)
Total Distributions		—			—			(1.06	)		(0.87	)		(0.63	)
Net Asset Value End of Period	$	5.54		$	7.08		$	8.03		$	9.06		$	9.26
Total ReturnC		(21.75	)%		(11.83	)%		0.46	%		7.40	%		7.05	%
Net Assets End of Period (in thousands)	$	47,471		$	82,109		$	104,057		$	144,519		$	175,084
Ratio of Expenses to Average Net Assets		1.49	%		1.50	%		1.51	%		1.48	%		1.50	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.73	%		1.58	%		1.52	%		1.48	%		1.50	%
Ratio of Net Investment Income (Loss) to Average Net Assets		0.24	%		(0.08	)%		0.77	%		0.60	%		0.57	%
Portfolio Turnover Rate		88	%		130	%		22	%		95	%		43	%

	Year Ended December 31,
Enterprise Managed Fund (Class B)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	6.96		$	7.93		$	8.96		$	9.17		$	9.19
Net Investment Income (Loss)		(0.02	)F		(0.05	)F		0.02	F		0.00	F,G		0.00	G
Net Realized and Unrealized Gain (Loss) on Investments		(1.52	)		(0.92	)		(0.04	)		0.61			0.57
Total from Investment Operations		(1.54	)		(0.97	)		(0.02	)		0.61			0.57
Dividends from Net Investment Income		—			—			(0.02	)		(0.01	)		(0.01	)
Distributions from Capital Gains		—			—			(0.99	)		(0.81	)		(0.58	)
Total Distributions		—			—			(1.01	)		(0.82	)		(0.59	)
Net Asset Value End of Period	$	5.42		$	6.96		$	7.93		$	8.96		$	9.17
Total ReturnD		(22.13	)%		(12.23	)%		(0.12	)%		6.75	%		6.31	%
Net Assets End of Period (in thousands)	$	61,098		$	93,248		$	111,848		$	149,098		$	161,552
Ratio of Expenses to Average Net Assets		2.03	%		2.05	%		2.06	%		2.03	%		2.05	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.28	%		2.13	%		2.07	%		2.03	%		2.05	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.30	)%		(0.63	)%		0.23	%		0.04	%		0.02	%
Portfolio Turnover Rate		88	%		130	%		22	%		95	%		43	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

166

Enterprise Managed Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Managed Fund (Class C)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	6.96		$	7.93		$	8.96		$	9.09		$	9.21
Net Investment Income (Loss)		(0.02	)F		(0.05	)F		0.02	F		0.00	F,G		(0.01	)
Net Realized and Unrealized Gain (Loss) on Investments		(1.53	)		(0.92	)		(0.04	)		0.68			0.49
Total from Investment Operations		(1.55	)		(0.97	)		(0.02	)		0.68			0.48
Dividends from Net Investment Income		—			—			(0.02	)		—			(0.02	)
Distributions from Capital Gains		—			—			(0.99	)		(0.81	)		(0.58	)
Total Distributions		—			—			(1.01	)		(0.81	)		(0.60	)
Net Asset Value End of Period	$	5.41		$	6.96		$	7.93		$	8.96		$	9.09
Total ReturnD		(22.27	)%C		(12.23	)%		(0.15	)%		7.64	%		5.36	%
Net Assets End of Period (in thousands)	$	3,513		$	5,597		$	7,382		$	9,957		$	11,654
Ratio of Expenses to Average Net Assets		2.04	%		2.05	%		2.06	%		2.03	%		2.05	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.28	%		2.13	%		2.07	%		2.03	%		2.05	%
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.31	)%		(0.63	)%		0.23	%		0.05	%		0.02	%
Portfolio Turnover Rate		88	%		130	%		22	%		95	%		43	%

	Year Ended December 31,
Enterprise Managed Fund (Class Y)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	7.10		$	8.01		$	9.05		$	9.25		$	9.27
Net Investment Income (Loss)		0.02	F		0.03	F		0.10	F		0.10	F		0.10
Net Realized and Unrealized Gain (Loss) on Investments		(1.55	)		(0.94	)		(0.04	)		0.62			0.55
Total from Investment Operations		(1.53	)		(0.91	)		0.06			0.72			0.65
Dividends from Net Investment Income		—			—			(0.11	)		(0.11	)		(0.09	)
Distributions from Capital Gains		—			—			(0.99	)		(0.81	)		(0.58	)
Total Distributions		—			—			(1.10	)		(0.92	)		(0.67	)
Net Asset Value End of Period	$	5.57		$	7.10		$	8.01		$	9.05		$	9.25
Total Return		(21.55	)%		(11.36	)%		0.83	%		7.94	%		7.20	%
Net Assets End of Period (in thousands)	$	172		$	43,417		$	54,761		$	81,090		$	89,084
Ratio of Expenses to Average Net Assets		1.05	%		1.05	%		1.06	%		1.03	%		1.05	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.20	%		1.13	%		1.07	%		1.03	%		1.05	%
Ratio of Net Investment Income (Loss) to Average Net Assets		0.28	%		0.37	%		1.23	%		1.04	%		1.01	%
Portfolio Turnover Rate		88	%		130	%		22	%		95	%		43	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

167

Enterprise Strategic Allocation Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Strategic Allocation Fund (Class A)	Year Ended December 31, 2002			For the Period 8/31/01 through 12/31/01
Net Asset Value Beginning of Period	$	10.15		$	10.00
Net Investment Income (Loss)		0.02	F		0.00	F,G
Net Realized and Unrealized Gain (Loss) on Investments		(2.26	)		0.17
Total From Investment Operations		(2.24	)		0.17
Dividends from Net Investment Income		—			—
Distributions from Capital Gains		—			(0.02	)
Total Distributions		—			(0.02	)
Net Asset Value End of Period	$	7.91		$	10.15
Total ReturnC		(22.07	)%		1.72	%B
Net Assets End of Period (in Thousands)	$	7,779		$	8,182
Ratio of Expenses to Average Net Assets		1.50	%		1.50	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.18	%		4.00	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		0.27	%		0.06	%A
Portfolio Turnover Rate		23	%		18	%

Strategic Allocation Fund (Class B)	Year Ended December 31, 2002			For the Period 8/31/01 through 12/31/01
Net Asset Value Beginning of Period	$	10.14		$	10.00
Net Investment Income (Loss)		(0.02	)F		(0.02	)F
Net Realized and Unrealized Gain (Loss) on Investments		(2.26	)		0.18
Total From Investment Operations		(2.28	)		0.16
Dividends from Net Investment Income		—			—
Distributions from Capital Gains		—			(0.02	)
Total Distributions		—			(0.02	)
Net Asset Value End of Period	$	7.86		$	10.14
Total ReturnD		(22.49	)%		1.62	%B
Net Assets End of Period (in Thousands)	$	8,435		$	5,318
Ratio of Expenses to Average Net Assets		2.05	%		2.05	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.73	%		4.54	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.24	)%		(0.47	)%A
Portfolio Turnover Rate		23	%		18	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

168

Enterprise Strategic Allocation Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Strategic Allocation Fund (Class C)	Year Ended December 31, 2002			For the Period 8/31/01 through 12/31/01
Net Asset Value Beginning of Period	$	10.14		$	10.00
Net Investment Income (Loss)		(0.02	)F		(0.02	)F
Net Realized and Unrealized Gain (Loss) on Investments		(2.26	)		0.18
Total From Investment Operations		(2.28	)		0.16
Dividends from Net Investment Income		—			—
Distributions from Capital Gains		—			(0.02	)
Total Distributions		—			(0.02	)
Net Asset Value End of Period	$	7.86		$	10.14
Total ReturnD		(22.49	)%C		1.62	%B
Net Assets End of Period (in Thousands)	$	4,117		$	3,148
Ratio of Expenses to Average Net Assets		2.05	%		2.05	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.73	%		4.55	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.26	)%		(0.48	)%A
Portfolio Turnover Rate		23	%		18	%

Strategic Allocation Fund (Class Y)	Year Ended December 31, 2002			For the Period 8/31/01 through 12/31/01
Net Asset Value Beginning of Period	$	10.17		$	10.00
Net Investment Income (Loss)		0.06	F		0.02	F
Net Realized and Unrealized Gain (Loss) on Investments		(2.26	)		0.17
Total From Investment Operations		(2.20	)		0.19
Dividends from Net Investment Income		—			—
Distributions from Capital Gains		—			(0.02	)
Total Distributions		—			(0.02	)
Net Asset Value End of Period	$	7.97		$	10.17
Total Return		(21.63	)%		1.92	%B
Net Assets End of Period (in Thousands)	$	1,124		$	1,224
Ratio of Expenses to Average Net Assets		1.05	%		1.05	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.74	%		3.59	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		0.72	%		0.50	%A
Portfolio Turnover Rate		23	%		18	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

169

Enterprise Government Securities Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	Year Ended December 31,
Enterprise Government Securities Fund (Class A)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	12.38		$	12.11		$	11.57		$	12.15		$	12.03
Net Investment Income (Loss)		0.59			0.66			0.65			0.65			0.68
Net Realized and Unrealized Gain (Loss) on Investments		0.48			0.24			0.54			(0.58	)		0.12
Total from Investment Operations		1.07			0.90			1.19			0.07			0.80
Dividends from Net Investment Income		(0.58	)		(0.64	)		(0.65	)		(0.65	)		(0.68	)
Distributions from Capital Gains		—			—			—			—			—
Total Distributions		(0.58	)		(0.64	)		(0.65	)		(0.65	)		(0.68	)
Redemption Fees		0.01			0.01			—			—			—
Net Asset Value End of Period	$	12.88		$	12.38		$	12.11		$	11.57		$	12.15
Total ReturnC		8.96	%		7.67	%		10.69	%		0.58	%		6.82	%
Net Assets End of Period (in thousands)	$	125,270		$	94,130		$	80,994		$	73,706		$	71,609
Ratio of Expenses to Average Net Assets		1.27	%		1.30	%		1.30	%		1.30	%		1.30	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.47	%		1.37	%		1.36	%		1.39	%		1.38	%
Ratio of Net Investment Income (Loss) to Average Net Assets		4.70	%		5.32	%		5.58	%		5.46	%		5.61	%
Portfolio Turnover Rate		11	%		15	%		7	%		11	%		8	%

	Year Ended December 31,
Enterprise Government Securities Fund (Class B)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	12.37		$	12.11		$	11.57		$	12.14		$	12.02
Net Investment Income (Loss)		0.52			0.59			0.59			0.58			0.61
Net Realized and Unrealized Gain (Loss) on Investments		0.48			0.24			0.54			(0.57	)		0.12
Total from Investment Operations		1.00			0.83			1.13			0.01			0.73
Dividends from Net Investment Income		(0.51	)		(0.57	)		(0.59	)		(0.58	)		(0.61	)
Distributions from Capital Gains		—			—			—			—			—
Total Distributions		(0.51	)		(0.57	)		(0.59	)		(0.58	)		(0.61	)
Redemption Fees		0.00	G		—			—			—			—
Net Asset Value End of Period	$	12.86		$	12.37		$	12.11		$	11.57		$	12.14
Total ReturnD		8.29	%		7.00	%		10.09	%		0.12	%		6.24	%
Net Assets End of Period (in thousands)	$	104,677		$	66,898		$	41,344		$	36,876		$	27,134
Ratio of Expenses to Average Net Assets		1.82	%		1.85	%		1.85	%		1.85	%		1.85	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.03	%		1.92	%		1.91	%		1.95	%		1.93	%
Ratio of Net Investment Income (Loss) to Average Net Assets		4.13	%		4.75	%		5.06	%		4.92	%		5.00	%
Portfolio Turnover Rate		11	%		15	%		7	%		11	%		8	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

170

Enterprise Government Securities Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Government Securities Fund (Class C)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	12.37		$	12.11		$	11.57		$	12.14		$	12.03
Net Investment Income (Loss)		0.52			0.59			0.59			0.58			0.62
Net Realized and Unrealized Gain (Loss) on Investments		0.48			0.24			0.54			(0.57	)		0.11
Total from Investment Operations		1.00			0.83			1.13			0.01			0.73
Dividends from Net Investment Income		(0.51	)		(0.57	)		(0.59	)		(0.58	)		(0.62	)
Distributions from Capital Gains		—			—			—			—			—
Total Distributions		(0.51	)		(0.57	)		(0.59	)		(0.58	)		(0.62	)
Redemption Fees		—			—			—			—			—
Net Asset Value End of Period	$	12.86		$	12.37		$	12.11		$	11.57		$	12.14
Total ReturnD		8.28	%C		6.99	%		10.08	%		0.12	%		6.15	%
Net Assets End of Period (in thousands)	$	27,942		$	16,798		$	8,692		$	5,516		$	3,089
Ratio of Expenses to Average Net Assets		1.82	%		1.85	%		1.85	%		1.85	%		1.85	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.03	%		1.92	%		1.90	%		1.95	%		1.94	%
Ratio of Net Investment Income (Loss) to Average Net Assets		4.12	%		4.72	%		5.02	%		4.92	%		4.97	%
Portfolio Turnover Rate		11	%		15	%		7	%		11	%		8	%

Enterprise Government Securities Fund (Class Y)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	12.37		$	12.11		$	11.56		$	12.14		$	12.02
Net Investment Income (Loss)		0.65			0.72			0.71			0.70			0.74
Net Realized and Unrealized Gain (Loss) on Investments		0.48			0.24			0.55			(0.58	)		0.12
Total from Investment Operations		1.13			0.96			1.26			0.12			0.86
Dividends from Net Investment Income		(0.64	)		(0.70	)		(0.71	)		(0.70	)		(0.74	)
Distributions from Capital Gains		—			—			—			—			—
Total Distributions		(0.64	)		(0.70	)		(0.71	)		(0.70	)		(0.74	)
Redemption Fee		—			—			—			—			—
Net Asset Value End of Period	$	12.86		$	12.37		$	12.11		$	11.56		$	12.14
Total Return		9.37	%		8.07	%		11.28	%		1.04	%		7.30	%
Net Assets End of Period (in thousands)	$	10,242		$	7,669		$	7,171		$	6,212		$	7,281
Ratio of Expenses to Average Net Assets		0.82	%		0.85	%		0.85	%		0.85	%		0.85	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.03	%		0.92	%		0.91	%		0.94	%		0.93	%
Ratio of Net Investment Income (Loss) to Average Net Assets		5.18	%		5.78	%		6.06	%		5.92	%		6.06	%
Portfolio Turnover Rate		11	%		15	%		7	%		11	%		8	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

171

Enterprise High-Yield Bond Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise High-Yield Bond Fund (Class A)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	9.48		$	9.74		$	10.99		$	11.53		$	12.35
Net Investment Income (Loss)		0.69			0.81			0.94			0.94			0.94
Net Realized and Unrealized Gain (Loss) on Investments		(0.73	)		(0.26	)		(1.25	)		(0.53	)		(0.66	)
Total from Investment Operations		(0.04	)		(0.55	)		(0.31	)		0.41			0.28
Dividends from Net Investment Income		(0.69	)		(0.81	)		(0.94	)		(0.94	)		(0.94	)
Distributions from Capital Gains		—			—			—			(0.01	)		(0.16	)
Total Distributions		(0.69	)		(0.81	)		(0.94	)		(0.95	)		(1.10	)
Redemption Fees		0.01			—			—			—			—
Net Asset Value End of Period	$	8.76		$	9.48		$	9.74		$	10.99		$	11.53
Total ReturnC		(0.18	)%		5.73	%		(2.96	)%		3.64	%		2.29	%
Net Assets End of Period (in thousands)	$	96,790		$	63,928		$	54,612		$	64,038		$	72,637
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)		1.47	%		1.45	%		1.42	%		1.41	%		1.44	%
Ratio of Net Investment Income (Loss) to Average Net Assets		7.69	%		8.27	%		9.01	%		8.30	%		7.72	%
Portfolio Turnover Rate		66	%		75	%		61	%		84	%		114	%
Enterprise High-Yield Bond Fund (Class B)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	9.48		$	9.74		$	10.99		$	11.52		$	12.35
Net Investment Income (Loss)		0.64			0.76			0.88			0.88			0.87
Net Realized and Unrealized Gain (Loss) on Investments		(0.73	)		(0.26	)		(1.25	)		(0.52	)		(0.67	)
Total from Investment Operations		(0.09	)		0.50			(0.37	)		0.36			0.20
Dividends from Net Investment Income		(0.64	)		(0.76	)		(0.88	)		(0.88	)		(0.87	)
Distributions from Capital Gains		—			—			—			(0.01	)		(0.16	)
Total Distributions		(0.64	)		(0.76	)		(0.88	)		(0.89	)		(1.03	)
Net Asset Value End of Period	$	8.75		$	9.48		$	9.74		$	10.99		$	11.52
Total ReturnD		(0.83	)%		5.15	%		(3.49	)%		3.18	%		1.64	%
Net Assets End of Period (in thousands)	$	54,214		$	47,564		$	32,631		$	36,673		$	35,495
Ratio of Expenses to Average Net Assets		1.85	%		1.85	%		1.85	%		1.85	%		1.85	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.02	%		2.00	%		1.97	%		1.96	%		1.99	%
Ratio of Net Investment Income (Loss) to Average Net Assets		7.15	%		7.71	%		8.47	%		7.75	%		7.20	%
Portfolio Turnover Rate		66	%		75	%		61	%		84	%		114	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

172

Enterprise High-Yield Bond Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise High-Yield Bond Fund (Class C)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	9.48		$	9.74		$	10.99		$	11.53		$	12.35
Net Investment Income (Loss)		0.64			0.76			0.88			0.88			0.87
Net Realized and Unrealized Gain (Loss) on Investments		(0.73	)		(0.26	)		(1.25	)		(0.53	)		(0.66	)
Total from Investment Operations		(0.09	)		0.50			(0.37	)		0.35			0.21
Dividends from Net Investment Income		(0.64	)		(0.76	)		(0.88	)		(0.88	)		(0.87	)
Distributions from Capital Gains		—			—			—			(0.01	)		(0.16	)
Total Distributions		(0.64	)		(0.76	)		(0.88	)		(0.89	)		(1.03	)
Redemption Fees		—			—			—			—			—
Net Asset Value End of Period	$	8.75		$	9.48		$	9.74		$	10.99		$	11.53
Total ReturnD		(0.84	)%C		5.15	%		(3.49	)%		3.09	%		1.72	%
Net Assets End of Period (in thousands)	$	29,060		$	13,902		$	7,035		$	6,841		$	5,392
Ratio of Expenses to Average Net Assets		1.85	%		1.85	%		1.85	%		1.85	%		1.85	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.02	%		1.99	%		1.96	%		1.96	%		1.99	%
Ratio of Net Investment Income (Loss) to Average Net Assets		7.12	%		7.64	%		8.47	%		7.73	%		7.27	%
Portfolio Turnover Rate		66	%		75	%		61	%		84	%		114	%

Enterprise High-Yield Bond Fund (Class Y)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	9.49		$	9.74		$	10.99		$	11.51		$	12.35
Net Investment Income (Loss)		0.73			0.86			0.99			0.99			0.99
Net Realized and Unrealized Gain (Loss) on Investments		(0.72	)		(0.25	)		(1.25	)		(0.51	)		(0.68	)
Total from Investment Operations		0.01			0.61			(0.26	)		0.48			0.31
Dividends from Net Investment Income		(0.73	)		(0.86	)		(0.99	)		(0.99	)		(0.99	)
Distributions from Capital Gains		—			—			—			(0.01	)		(0.16	)
Total Distributions		(0.73	)		(0.86	)		(0.99	)		(1.00	)		(1.15	)
Net Asset Value End of Period	$	8.77		$	9.49		$	9.74		$	10.99		$	11.51
Total Return		0.29	%		6.32	%		(2.52	)%		4.30	%		2.49	%
Net Assets End of Period (in thousands)	$	5,555		$	4,189		$	808		$	1,179		$	2,032
Ratio of Expenses to Average Net Assets		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.02	%		1.00	%		0.97	%		0.96	%		1.00	%
Ratio of Net Investment Income (Loss) to Average Net Assets		8.17	%		8.72	%		9.48	%		8.73	%		8.30	%
Portfolio Turnover Rate		66	%		75	%		61	%		84	%		114	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

173

Enterprise Short Duration Bond Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Short Duration Bond Fund (Class A)	For the Period November 29, 2002 through December 31, 2002
Net Asset Value Beginning of Period	$	10.00
Net Investment Income (Loss)		0.01
Net Realized and Unrealized Gain (Loss) on Investments		0.02
Total from Investment Operations		0.03
Dividends from Net Investment Income		(0.01	)
Distributions from Capital Gains		—
Total Distributions		(0.01	)
Net Asset Value End of Period	$	10.02
Total ReturnA,C		0.34	%B
Net Assets End of Period (in thousands)	$	2,155
Ratio of Expenses to Average Net Assets		0.25	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		8.04	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		1.40	%A
Portfolio Turnover Rate		0	%

Enterprise Short Duration Bond Fund (Class B)	For the Period November 29, 2002 through December 31, 2002
Net Asset Value Beginning of Period	$	10.00
Net Investment Income (Loss)		0.01
Net Realized and Unrealized Gain (Loss) on Investments		0.01
Total from Investment Operations		0.02
Dividends from Net Investment Income		(0.01	)
Distributions from Capital Gains		—
Total Distributions		(0.01	)
Net Asset Value End of Period	$	10.01
Total ReturnD		0.23	%B
Net Assets End of Period (in thousands)	$	2,268
Ratio of Expenses to Average Net Assets		1.00	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		8.71	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		0.61	%A
Portfolio Turnover Rate		0	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

174

Enterprise Short Duration Bond Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Short Duration Bond Fund (Class C)	For the Period November 29, 2002 through December 31, 2002
Net Asset Value Beginning of Period	$	10.00
Net Investment Income (Loss)		0.01
Net Realized and Unrealized Gain (Loss) on Investments		0.01
Total from Investment Operations		0.02
Dividends from Net Investment Income		(0.01	)
Distributions from Capital Gains		—
Total Distributions		(0.01	)
Net Asset Value End of Period	$	10.01
Total ReturnC,D		0.24	%B
Net Assets End of Period (in thousands)	$	2,110
Ratio of Expenses to Average Net Assets		1.00	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		8.63	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		0.63	%A
Portfolio Turnover Rate		0	%

Enterprise Short Duration Bond Fund (Class Y)	For the Period November 29, 2002 through December 31, 2002
Net Asset Value Beginning of Period	$	10.00
Net Investment Income (Loss)		0.01
Net Realized and Unrealized Gain (Loss) on Investments		0.02
Total from Investment Operations		0.03
Dividends from Net Investment Income		(0.01	)
Distributions from Capital Gains		—
Total Distributions		(0.01	)
Net Asset Value End of Period	$	10.02
Total Return		0.34	%B
Net Assets End of Period (in thousands)	$	1,102
Ratio of Expenses to Average Net Assets		0.00	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		7.69	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		1.57	%A
Portfolio Turnover Rate		0	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

175

Enterprise Tax-Exempt Income Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Tax-Exempt Income Fund (Class A)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	13.49		$	13.60		$	12.82		$	13.84		$	13.95
Net Investment Income (Loss)		0.51			0.53			0.55			0.54			0.60
Net Realized and Unrealized Gain (Loss) on Investments		0.70			(0.11	)		0.78			(0.92	)		0.20
Total from Investment Operations		1.21			0.42			1.33			(0.38	)		0.80
Dividends from Net Investment Income		(0.51	)		(0.53	)		(0.55	)		(0.54	)		(0.60	)
Distributions from Capital Gains		(0.03	)		—			—			(0.10	)		(0.31	)
Total Distributions		(0.54	)		(0.53	)		(0.55	)		(0.64	)		(0.91	)
Net Asset Value End of Period	$	14.16		$	13.49		$	13.60		$	12.82		$	13.84
Total ReturnC		9.09	%		3.09	%		10.65	%		(2.76	)%		5.92	%
Net Assets End of Period (in thousands)	$	24,296		$	21,992		$	22,240		$	21,703		$	23,710
Ratio of Expenses to Average Net Assets		1.10	%		1.10	%		1.10	%		1.10	%		1.10	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement and Expense Offset Arrangements)		1.34	%		1.33	%		1.36	%		1.44	%		1.40	%
Ratio of Net Investment Income (Loss) to Average Net Assets		3.66	%		3.86	%		4.23	%		4.05	%		4.30	%
Portfolio Turnover Rate		20	%		34	%		41	%		110	%		100	%

Enterprise Tax-Exempt Income Fund (Class B)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	13.50		$	13.60		$	12.82		$	13.84		$	13.95
Net Investment Income (Loss)		0.43			0.45			0.48			0.47			0.53
Net Realized and Unrealized Gain (Loss) on Investments		0.70			(0.10	)		0.78			(0.92	)		0.20
Total from Investment Operations		1.13			0.35			1.26			(0.45	)		0.73
Dividends from Net Investment Income		(0.43	)		(0.45	)		(0.48	)		(0.47	)		(0.53	)
Distributions from Capital Gains		(0.03	)		—			—			(0.10	)		(0.31	)
Total Distributions		(0.46	)		(0.45	)		(0.48	)		(0.57	)		(0.84	)
Net Asset Value End of Period	$	14.17		$	13.50		$	13.60		$	12.82		$	13.84
Total ReturnD		8.49	%		2.60	%		10.05	%		(3.29	)%		5.33	%
Net Assets End of Period (in thousands)	$	8,760		$	6,939		$	6,650		$	5,640		$	4,451
Ratio of Expenses to Average Net Assets		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement and Expense Offset Arrangements)		1.90	%		1.87	%		1.91	%		1.99	%		1.96	%
Ratio of Net Investment Income (Loss) to Average Net Assets		3.11	%		3.29	%		3.68	%		3.51	%		3.71	%
Portfolio Turnover Rate		20	%		34	%		41	%		110	%		100	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

176

Enterprise Tax-Exempt Income Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Tax-Exempt Income Fund (Class C)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	13.49		$	13.60		$	12.82		$	13.84		$	13.95
Net Investment Income (Loss)		0.43			0.45			0.48			0.47			0.53
Net Realized and Unrealized Gain (Loss) on Investments		0.70			(0.11	)		0.78			(0.92	)		0.20
Total from Investment Operations		1.13			0.34			1.26			(0.45	)		0.73
Dividends from Net Investment Income		(0.43	)		(0.45	)		(0.48	)		(0.47	)		(0.53	)
Distributions from Capital Gains		(0.03	)		—			—			(0.10	)		(0.31	)
Total Distributions		(0.46	)		(0.45	)		(0.48	)		(0.57	)		(0.84	)
Net Asset Value End of Period	$	14.16		$	13.49		$	13.60		$	12.82		$	13.84
Total ReturnD		8.49	%C		2.52	%		9.96	%		(3.23	)%		5.34	%
Net Assets End of Period (in thousands)	$	3,767		$	1,821		$	1,577		$	1,706		$	777
Ratio of Expenses to Average Net Assets		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement and Expense Offset Arrangements)		1.90	%		1.87	%		1.91	%		1.97	%		1.93	%
Ratio of Net Investment Income (Loss) to Average Net Assets		3.07	%		3.28	%		3.68	%		3.54	%		3.71	%
Portfolio Turnover Rate		20	%		34	%		41	%		110	%		100	%

Enterprise Tax-Exempt Income Fund (Class Y)	Year Ended December 31,												For the Period 11/17/98 through 12/31/98
	2002			2001			2000			1999
Net Asset Value Beginning of Period	$	13.49		$	13.60		$	12.82		$	13.84		$	14.12
Net Investment Income (Loss)		0.57			0.59			0.61			0.61			0.07
Net Realized and Unrealized Gain (Loss) on Investments		0.71			(0.11	)		0.78			(0.92	)		0.03
Total from Investment Operations		1.28			0.48			1.39			(0.31	)		0.10
Dividends from Net Investment Income		(0.57	)		(0.59	)		(0.61	)		(0.61	)		(0.07	)
Distributions from Capital Gains		(0.03	)		—			—			(0.10	)		(0.31	)
Total Distributions		(0.60	)		(0.59	)		(0.61	)		(0.71	)		(0.38	)
Net Asset Value End of Period	$	14.17		$	13.49		$	13.60		$	12.82		$	13.84
Total Return		9.66	%		3.56	%		11.15	%		(2.32	)%		0.75	%B
Net Assets End of Period (in thousands)	$	102		$	78		$	49		$	61		$	65
Ratio of Expenses to Average Net Assets		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement and Expense Offset Arrangements)		0.90	%		0.88	%		0.91	%		0.99	%		0.95	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		4.11	%		4.31	%		4.68	%		4.51	%		4.75	%A
Portfolio Turnover Rate		20	%		34	%		41	%		110	%		100	%A

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

177

Enterprise Total Return Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Total Return Fund (Class A)	Year Ended December 31, 2002			For the Period 08/31/01 through 12/31/2001
Net Asset Value Beginning of Period	$	10.04		$	10.00
Net Investment Income (Loss)		0.32			0.10
Net Realized and Unrealized Gain (Loss) on Investments		0.43			0.11
Total from Investment Operations		0.75			0.21
Dividends from Net Investment Income		(0.34	)		(0.10	)
Distributions from Capital Gains		(0.21	)		(0.07	)
Total Distributions		(0.55	)		(0.17	)
Net Asset Value End of Period	$	10.24		$	10.04
Total ReturnC		7.56	%		2.18	%B
Net Assets End of Period (in thousands)	$	26,530		$	6,991
Ratio of Expenses to Average Net Assets		1.35	%		1.35	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.71	%		2.98	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		3.25	%		3.17	%A
Portfolio Turnover Rate		467	%		160	%

Enterprise Total Return Fund (Class B)	Year Ended December 31, 2002			For the Period 08/31/01 through 12/31/2001
Net Asset Value Beginning of Period	$	10.03		$	10.00
Net Investment Income (Loss)		0.26			0.09
Net Realized and Unrealized Gain (Loss) on Investments		0.44			0.10
Total from Investment Operations		0.70			0.19
Dividends from Net Investment Income		(0.28	)		(0.09	)
Distributions from Capital Gains		(0.21	)		(0.07	)
Total Distributions		(0.49	)		(0.16	)
Net Asset Value End of Period	$	10.24		$	10.03
Total ReturnD		7.09	%		1.90	%B
Net Assets End of Period (in thousands)	$	23,950		$	6,143
Ratio of Expenses to Average Net Assets		1.90	%		1.90	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.27	%		3.50	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		2.69	%		2.65	%A
Portfolio Turnover Rate		467	%		160	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

178

Enterprise Total Return Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Total Return Fund (Class C)	Year Ended December 31, 2002			For the Period 08/31/01 through 12/31/2001
Net Asset Value Beginning of Period	$	10.03		$	10.00
Net Investment Income (Loss)		0.26			0.09
Net Realized and Unrealized Gain (Loss) on Investments		0.44			0.10
Total from Investment Operations		0.70			0.19
Dividends from Net Investment Income		(0.28	)		(0.09	)
Distributions from Capital Gains		(0.21	)		(0.07	)
Total Distributions		(0.49	)		(0.16	)
Net Asset Value End of Period	$	10.24		$	10.03
Total ReturnD		7.07	%C		1.90	%B
Net Assets End of Period (in thousands)	$	16,586		$	2,981
Ratio of Expenses to Average Net Assets		1.90	%		1.90	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		2.26	%		3.55	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		2.62	%		2.59	%A
Portfolio Turnover Rate		467	%		160	%

Enterprise Total Return Fund (Class Y)	Year Ended December 31, 2002			For the Period 08/31/01 through 12/31/2001
Net Asset Value Beginning of Period	$	10.03		$	10.00
Net Investment Income (Loss)		0.36			0.12
Net Realized and Unrealized Gain (Loss) on Investments		0.44			0.10
Total from Investment Operations		0.80			0.22
Dividends from Net Investment Income		(0.38	)		(0.12	)
Distributions from Capital Gains		(0.21	)		(0.07	)
Total Distributions		(0.59	)		(0.19	)
Net Asset Value End of Period	$	10.24		$	10.03
Total Return		8.16	%		2.24	%B
Net Assets End of Period (in thousands)	$	2,053		$	1,495
Ratio of Expenses to Average Net Assets		0.90	%		0.90	%A
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		1.27	%		2.68	%A
Ratio of Net Investment Income (Loss) to Average Net Assets		3.79	%		3.56	%A
Portfolio Turnover Rate		467	%		160	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

179

Enterprise Money Market Fund

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

	For the Year Ended December 31,
Enterprise Money Market Fund (Class A)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net Investment Income (Loss)		0.01			0.04			0.06			0.05			0.05
Total from Investment Operations		0.01			0.04			0.06			0.05			0.05
Dividends from Net Investment Income		(0.01	)		(0.04	)		(0.06	)		(0.05	)		(0.05	)
Total Distributions		(0.01	)		(0.04	)		(0.06	)		(0.05	)		(0.05	)
Net Asset Value End of Period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return		1.34	%		3.71	%		6.05	%		4.80	%		5.04	%
Net Assets End of Period (in thousands)	$	264,161		$	251,503		$	272,225		$	204,403		$	140,490
Ratio of Expenses to Average Net Assets		0.68	%		0.62	%		0.56	%		0.59	%		0.64	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		0.68	%		0.62	%		0.56	%		0.59	%		0.64	%
Ratio of Net Investment Income (Loss) to Average Net Assets		1.32	%		3.65	%		5.91	%		4.74	%		4.91	%
	Year Ended December 31,
Enterprise Money Market Fund (Class B)	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net Investment Income (Loss)		0.01			0.04			0.06			0.05			0.05
Total from Investment Operations		0.01			0.04			0.06			0.05			0.05
Dividends from Net Investment Income		(0.01	)		(0.04	)		(0.06	)		(0.05	)		(0.05	)
Total Distributions		(0.01	)		(0.04	)		(0.06	)		(0.05	)		(0.05	)
Net Asset Value End of Period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total ReturnD		1.34	%		3.71	%		6.05	%		4.80	%		5.04	%
Net Assets End of Period (in thousands)	$	56,323		$	44,045		$	28,096		$	32,863		$	10,147
Ratio of Expenses to Average Net Assets		0.68	%		0.62	%		0.56	%		0.60	%		0.64	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		0.68	%		0.62	%		0.56	%		0.60	%		0.64	%
Ratio of Net Investment Income (Loss) to Average Net Assets		1.32	%		3.65	%		5.91	%		4.86	%		4.91	%

See notes to financial statements.

THE ENTERPRISE Group of Funds, Inc.

180

Enterprise Money Market Fund — (Continued)

FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:

Enterprise Money Market Fund (Class C)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net Investment Income (Loss)		0.01			0.04			0.06			0.05			0.05
Total from Investment Operations		0.01			0.04			0.06			0.05			0.05
Dividends from Net Investment Income		(0.01	)		(0.04	)		(0.06	)		(0.05	)		(0.05	)
Total Distributions		(0.01	)		(0.04	)		(0.06	)		(0.05	)		(0.05	)
Net Asset Value End of Period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total ReturnD		1.34	%		3.71	%		6.05	%		4.80	%		5.04	%
Net Assets End of Period (in thousands)	$	12,775		$	10,632		$	8,709		$	7,296		$	4,680
Ratio of Expenses to Average Net Assets		0.68	%		0.62	%		0.56	%		0.59	%		0.63	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		0.68	%		0.62	%		0.56	%		0.59	%		0.63	%
Ratio of Net Investment Income (Loss) to Average Net Assets		1.32	%		3.65	%		5.91	%		4.76	%		4.90	%

Enterprise Money Market Fund (Class Y)	Year Ended December 31,
	2002			2001			2000			1999			1998
Net Asset Value Beginning of Period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net Investment Income (Loss)		0.01			0.04			0.06			0.05			0.05
Total from Investment Operations		0.01			0.04			0.06			0.05			0.05
Dividends from Net Investment Income		(0.01	)		(0.04	)		(0.06	)		(0.05	)		(0.05	)
Total Distributions		(0.01	)		(0.04	)		(0.06	)		(0.05	)		(0.05	)
Net Asset Value End of Period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return		1.34	%		3.71	%		6.05	%		4.80	%		5.04	%
Net Assets End of Period (in thousands)	$	4,298		$	3,160		$	2,666		$	3,477		$	3,413
Ratio of Expenses to Average Net Assets		0.68	%		0.62	%		0.56	%		0.59	%		0.65	%
Ratio of Expenses to Average Net Assets (Excluding Reimbursement)		0.68	%		0.62	%		0.56	%		0.59	%		0.65	%
Ratio of Net Investment Income (Loss) to Average Net Assets		1.32	%		3.65	%		5.91	%		4.72	%		4.92	%

^A Annualized.

^B Not annualized.

^C Total return does not include one time front-end 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.

181

Notes to Financial Statements

December 31, 2002

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 Mid-Cap Growth, Multi-Cap Growth, Small Company Growth, Small Company Value, Capital Appreciation, Deep Value, Equity, Equity Income, Growth, Growth and Income, International Growth, Global Financial Services, Global Health Care, Global Socially Responsive, Mergers and Acquisitions, Technology (previously known as the Internet Fund), Managed, Strategic Allocation, Government Securities, High-Yield Bond, Short Duration Bond, Tax-Exempt Income, Total Return and Money Market Funds.

Effective August 23, 2002, the Technology Fund acquired all of the net assets of the Global Technology Fund in a tax-free exchange of shares wherein shareholder of each class of the Global Technology Fund received for each share owned approximately 0.32 shares of the Technology Fund. The aggregate net assets and unrealized appreciation/(depreciation) of the funds immediately before and after the merger were as follows:

	Net Assets				Unrealized Appreciation /(Depreciation)
Fund	Before Merger		After Merger		Before Merger			After Merger
Technology	$	54,098,575	$	58,393,634	$	(8,726,006	)	$	(9,500,764	)
Global Technology		4,295,059				(774,758	)
Effective March 22, 2002, the Growth Fund acquired all of the net assets of the Balanced Fund in a tax-free exchange of shares wherein shareholder of each class of the Balanced Fund received for each share owned approximately 0.27 shares of the Growth Fund. The aggregate net assets and unrealized appreciation/(depreciation) of the funds immediately before and after the merger were as follows:
	Net Assets				Unrealized Appreciation /(Depreciation)
Fund	Before Merger		After Merger		Before Merger			After Merger
Growth	$	1,719,920,758	$	1,736,885,663	$	167,994,416		$	169,014,525
Balanced		16,964,905				1,020,109
Effective December 17, 2001, the International Growth Fund acquired all of the net assets of the International Core Growth, Worldwide Growth and Emerging Countries Funds, the Mid-Cap Growth Fund acquired all of the net assets of the Convertible Securities Fund and the Equity Fund acquired all of the net assets of the Large-Cap Fund in tax-free exchanges of shares. The aggregate net assets and unrealized appreciation/(depreciation) of the funds immediately before and after the mergers were as follows:
	Net Assets				Unrealized Appreciation /(Depreciation)
Fund	Before Merger		After Merger		Before Merger			After Merger
International Growth	$	67,616,404	$	78,935,742	$	(5,639,785	)	$	(5,385,162	)
International Core Growth		3,930,653				(69,800	)
Worldwide Growth		5,187,073				153,998
Emerging Countries		2,201,602				170,425
Mid-Cap Growth		9,621,760		17,019,331		341,382			319,760
Convertible Securities		7,397,571				(21,622	)
Equity		140,223,286		148,758,101		(28,581,418	)		(28,426,383	)
Large-Cap		8,534,815				155,035

THE ENTERPRISE Group of Funds, Inc.

182

Notes to Financial Statements — (Continued)

December 31, 2002

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 and Short Duration Bond Funds with sales charges of 0 and 3.50 percent, respectively) are subject to a maximum sales charge of 4.75 percent. Class B shares are subject to a maximum contingent deferred 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 front-end sales charge of 1 percent as well as a maximum contingent deferred sales charge of 1 percent, which declines to zero after one year and which is based on the lesser of net asset value at the time of purchase or redemption. Class Y shares are not subject to any sales charges.

2. Significant Accounting Policies

Valuation of Investments — Except with respect to the Money Market Fund, investment securities, other than debt securities, listed on either a national or foreign securities exchange or traded in the over-the-counter National Market System are generally valued each business day at the last reported sale price on the exchange on which the security is primarily traded. In certain instances fair values will be assigned when ECM believes that a significant event has occurred after the close of an exchange or market, but before the net asset value calculation. 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 or broker 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 ½ of 1 percent.

Special Valuation Risks — Foreign denominated assets, if any, held by the 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 their investment programs, certain funds may invest 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 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 certain funds 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 funds 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.

Certain funds invest a high percentage of their assets in specific sectors of the market in their pursuit of a greater investment return. Fluctuations in these sectors of concentration may have a greater impact to the fund, positive or negative, than if the fund did not concentrate its investments in such sectors.

Certain securities held by the Funds are valued on the basis of a price provided by a principal market maker. The prices provided by the principal market makers may differ from the value that would be realized if the securities were sold. At December 31, 2002, the total value of these securities represented approximately 3% of the net assets of the Short Duration Bond Fund.

THE ENTERPRISE Group of Funds, Inc.

183

Notes to Financial Statements — (Continued)

December 31, 2002

Illiquid Securities — At times, the funds may hold, up to their SEC or prospectus defined limitations, illiquid securities that they may not be able to sell at their current fair value price. Although it is expected that the fair value currently represents the current realizable value on disposition of such securities, there is no guarantee that the funds will be able to do so. In addition, the funds may incur certain costs related to the disposition of such securities. Any securities that have been deemed to be illiquid have been denoted as such in the Portfolio of Investments.

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/Agency securities whose market value is at least equal to the repurchase price. In the event of default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the counterparty to the agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings.

Written Options —  When a fund writes an option, an amount equal to any 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. 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 (or financial instrument) in determining whether the fund has realized a gain or loss. If a put option is exercised, the fund purchases the security (or financial instrument), the cost of which is reduced by the premium originally received, and no gain or loss is recognized. The Fund as writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option.

When a fund writes a swap option, an amount equal to any premium received by the fund is recorded as a liability and is subsequently adjusted to the current market value of the swap option written. If a call swap option is exercised, the fund becomes obligated to pay a fixed interest rate (noted as the strike price) and receive a variable interest rate on a notional amount. If a put swap option is exercised, the fund becomes obligated to pay a variable interest rate and receive a fixed interest rate (noted as the strike price) on a notional amount. Premiums received from writing swap options that expire or are exercised are treated as realized gains upon the expiration or exercise of such swap options. The risk associated with writing put and call swap options is that the fund will be obligated to be party to a swap agreement if a swap 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. Generally, 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 their investment program, the funds (other than the Total Return Fund) may enter into futures contracts (up to their prospectus defined limitations) to hedge against anticipated future price and interest rate changes. The Total Return Fund may also enter into futures contracts for other than hedging purposes. 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.

Foreign Currency Translation — Securities, other assets and liabilities of the 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 pricing vendor 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

THE ENTERPRISE Group of Funds, Inc.

184

Notes to Financial Statements — (Continued)

December 31, 2002

expense is incurred. Exchange gains and losses are realized upon ultimate receipt or disbursement. The 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 their investment programs, certain funds may 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 (other than the Total Return Fund) 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.

Swap Agreements — A swap agreement is a two-party contract under which an agreement is made to exchange returns from predetermined investments or instruments, including a particular interest rate, foreign currency, or “basket” of securities representing a particular index. The gross returns to be exchanged or “swapped” between the parties are calculated based on a “notional amount”, which, each business day, is valued to determine each party’s obligation under the contract. Fluctuations in market values are reflected as unrealized gains or losses during the term of the contract.

Risks could arise from entering into swap agreements from the potential inability of counterparties to meet the terms of their contracts, and from the potential inability to enter into a closing transaction. It is possible that developments in the swaps market could affect a fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements.

Short Sales — If a fund engages in a short sale, an amount equal to the proceeds received by the fund is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked to market daily to reflect the market value of the short sale. The fund maintains a segregated account of securities as collateral for the liability related to the short sale.

Security Transactions and Investment Income — Security transactions are accounted for on the trade date. Securities purchased or sold on a when-issued or delayed delivery basis, if any, may be settled a month or more after 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 is recognized on the ex-dividend date, and interest income is recognized on the accrual basis. Corporate actions, including dividends, on foreign securities are recorded on the ex-dividend date. Premiums and discounts on securities are amortized daily for both financial and tax purposes using the effective interest method.

Dividends and Distributions — Distributions of capital gains, if any, from each of the funds, other than the Money Market Fund, are made at least annually. Dividends from net investment income, if any, for all funds other than the Fixed Income Funds, are declared and paid at least annually. Dividends from net investment income for the Fixed Income Funds are declared daily and paid monthly. Dividends from net investment income and any net realized capital gains for the Money Market Fund are declared daily and paid or reinvested monthly in additional shares of the Money Market Fund at net asset value. Dividends and distributions are recorded on the ex-dividend date.

Expenses — Generally, each Fund and class bears expenses incurred specifically on its behalf, such as advisory and custodian fees, as well as a portion of the common expenses of EGF, which are generally allocated based on net assets. No class has preferential dividend rights; differences in per share dividend rates are due to differences in separate class expenses.

Federal Income Taxes — It is the policy of EGF to qualify as a regulated investment company, by complying with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and by distributing substantially all of its earnings to its shareholders. To the extent that a fund does not distribute substantially all of its taxable earnings, it will be subject to a 4% non-deductible excise tax. However, no provision for Federal income or excise taxes is required, because ECM intends to pay any excise taxes on behalf of the funds.

Use of Estimates in Preparation of Financial Statements — Preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and

THE ENTERPRISE Group of Funds, Inc.

185

Notes to Financial Statements — (Continued)

December 31, 2002

assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases of net assets from operations during the reporting period. Actual results could differ from those estimates.

3. Transactions with Affiliates

The funds are charged investment advisory fees by ECM for furnishing advisory and administrative services. ECM has contractually agreed to limit the funds’ expenses through May 1, 2003, 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 advisory fee, distribution fee, and current contractual maximum expense amounts are equal to the following annual percentage of average daily net assets for each class of shares:

	Advisory Fee	Distribution Fee				Current Contractual Maximum Expense Amounts
Fund		A	B	C	Y	A	B	C	Y
Mid-Cap Growth	0.75%	0.45%	1.00%	1.00%	None	1.60%	2.15%	2.15%	1.15%
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	1.65%	2.20%	2.20%	1.20%
Small Company Value	0.75%	0.45%	1.00%	1.00%	None	1.75%	2.30%	2.30%	1.30%
Capital Appreciation	0.75%	0.45%	1.00%	1.00%	None	1.75%	2.30%	2.30%	1.30%
Deep Value	0.75%	0.45%	1.00%	1.00%	None	1.50%	2.05%	2.05%	1.05%
Equity	0.75%	0.45%	1.00%	1.00%	None	1.60%	2.15%	2.15%	1.15%
Equity Income	0.75%	0.45%	1.00%	1.00%	None	1.50%	2.05%	2.05%	1.05%
Growth	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%
International Growth	0.85%	0.45%	1.00%	1.00%	None	1.85%	2.40%	2.40%	1.40%
Global Financial Services	0.85%	0.45%	1.00%	1.00%	None	1.75%	2.30%	2.30%	1.30%
Global Health Care	1.00%	0.45%	1.00%	1.00%	None	1.85%	2.40%	2.40%	1.40%
Global Socially Responsive	0.90%	0.45%	1.00%	1.00%	None	1.75%	2.30%	2.30%	1.30%
Mergers and Acquisitions	0.90%	0.45%	1.00%	1.00%	None	1.90%	2.45%	2.45%	1.45%
Technology	1.00%	0.45%	1.00%	1.00%	None	1.90%	2.45%	2.45%	1.45%
Managed	0.75%	0.45%	1.00%	1.00%	None	1.45%	2.00%	2.00%	1.00%
Strategic Allocation	0.75%	0.45%	1.00%	1.00%	None	1.50%	2.05%	2.05%	1.05%
Government Securities	0.60%	0.45%	1.00%	1.00%	None	1.25%	1.80%	1.80%	0.80%
High-Yield Bond	0.60%	0.45%	1.00%	1.00%	None	1.30%	1.85%	1.85%	0.85%
Short Duration Bond	0.45%	0.25%	1.00%	1.00%	None	0.90%	1.65%	1.65%	0.65%
Tax-Exempt Income	0.50%	0.45%	1.00%	1.00%	None	1.10%	1.65%	1.65%	0.65%
Total Return	0.65%	0.45%	1.00%	1.00%	None	1.35%	1.90%	1.90%	0.90%
Money Market	0.35%	None	None	None	None	0.70%	0.70%	0.70%	0.70%

Prior to August 23, 2002 the maximum expense amounts for the Managed Fund were as follows: A) 1.50% B) 2.05% C) 2.05% and Y) 1.05%. For the period from its inception on November 29, 2002 through December 31, 2002 ECM voluntarily lowered the maximum expense amounts on the Short Duration Bond Fund as follows: A) 0.25% B) 1.00% C) 1.00% and Y) 0.00%.

THE ENTERPRISE Group of Funds, Inc.

186

Notes to Financial Statements — (Continued)

December 31, 2002

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 December 31, 2002:

Fund	Class A		Class B		Class C		Class Y
Mid-Cap Growth	$	275,067	$	271,912	$	271,629	$	119,623
Multi-Cap Growth		—		—		—		139,121
Small Company Growth		—		—		—		117,967
Small Company Value		—		—		—		436,502
Capital Appreciation		148,986		—		—		197,926
Deep Value		227,700		227,100		227,100		141,331
Equity		101,522		100,427		100,426		286,555
Equity Income		140,524		—		—		93,334
Growth		687,855		74,221		74,057		17,110,882
Growth and Income		—		—		—		112,951
International Growth		2,072		490,232		490,118		10,511,362
Global Financial Services		11,656		—		—		5,685,578
Global Health Care		165,300		162,900		162,900		153,518
Global Socially Responsive		212,700		210,000		209,700		100,283
Mergers and Acquisitions		291,000		287,700		288,000		251,085
Technology		99,422		50,961		50,961		276,538
Managed		149,226		—		—		55,175
Strategic Allocation		1,030,040		1,023,531		1,023,533		921,210
Government Securities		95,973		—		—		105,362
High-Yield Bond		72,419		—		—		37,720
Short Duration Bond		1,302,600		1,301,300		1,301,300		1,102,200
Tax-Exempt Income		—		—		1,078		50,177
Total Return		1,100,105		1,091,187		1,091,030		1,296,203
Money Market		1,335,721		—		—		343,727

ECM has subadvisory agreements with various investment advisors as subadvisers for the funds of EGF. The advisory 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. Boston Advisors, Inc. and MONY Capital Management, Inc., each wholly-owned subsidiaries of The MONY Group Inc., are the subadvisers for the Equity Income and Short Duration Bond Funds, respectively. For the year ended December 31, 2002, ECM incurred subadvisory fees payable to Boston Advisors, Inc. related to the Equity Income Fund of $333,861 with a related payable balance of $25,299 at December 31, 2002. For the period ended December 31, 2002, ECM incurred subadvisory fees payable to MONY Capital Management, Inc. related to the Short Duration Bond Fund of $548 with a related payable balance of $548 at December 31, 2002.

For the year ended December 31, 2002, the portions of EGF sales charges paid to MONY Securities Corporation, Trusted Securities Advisors Corp. and The Advest Group, Inc., each a wholly-owned subsidiary of The MONY Group Inc., were $6,233,905, $399,181 and $848,457, respectively. The portion of sales charges paid to EFD was $687,714.

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 year ended December 31, 2002, EFD incurred service fees of $2,188,846, $46,305 and $11,998 payable to MONY Securities Corporation, The Advest Group, Inc. and Trusted Securities Advisors Corp., respectively.

THE ENTERPRISE Group of Funds, Inc.

187

Notes to Financial Statements — (Continued)

December 31, 2002

For the year ended December 31, 2002, the fund paid brokerage commissions to affiliates, including affiliates of the advisor and subadvisers, as follows:

Fund	Commissions
Mid-Cap Growth	$	7,714
Multi-Cap Growth		438,479
Small Company Value		452,465
Capital Appreciation		60,103
Deep Value		1,208
Equity		4,066
Equity Income		16,250
Growth		239,615
Growth and Income		2,970
International Growth		28,036
Global Financial Services		5,744
Global Health Care		12,608
Global Socially Responsive		1,217
Technology		576,299
Managed		30,746

4. Investment Transactions

For the year ended December 31, 2002, purchases and sales proceeds of investments, other than short-term investments, were as follows:

	U.S. Government Obligations				Other Investment Securities
Fund	Purchases		Sales		Purchases		Sales
Mid-Cap Growth		—		—	$	26,744,880	$	28,471,914
Multi-Cap Growth		—		—		190,080,861		213,955,375
Small Company Growth		—		—		40,970,677		29,407,964
Small Company Value		—		—		175,040,738		82,605,604
Capital Appreciation		—		—		197,760,488		206,219,952
Deep Value		—		—		13,737,149		5,844,726
Equity		—		—		17,255,671		29,448,484
Equity Income		—		—		42,862,656		45,501,316
Growth		—		—		654,614,959		615,465,545
Growth and Income		—		—		30,461,183		45,547,346
International Growth		—		—		119,926,102		124,758,248
Global Financial Services		—		—		2,464,252		7,132,236
Global Health Care		—		—		66,962,595		67,694,406
Global Socially Responsive		—		—		3,314,178		2,039,731
Mergers and Acquisitions		—		—		80,248,084		64,490,523
Technology		—		—		227,943,803		240,833,038
Managed	$	32,408,082	$	11,061,326		103,811,408		199,631,730
Strategic Allocation		1,684,293		1,452,512		12,732,754		3,521,058
Government Securities		160,716,524		23,376,509		—		—
High –Yield Bond		3,131,829		3,477,117		152,690,837		93,287,891
Short Duration Bond		3,125,195		—		3,943,675		—
Tax-Exempt Income		—		—		11,375,217		6,594,376
Total Return		204,053,644		199,951,523		65,762,492		30,444,584

THE ENTERPRISE Group of Funds, Inc.

188

Notes to Financial Statements — (Continued)

December 31, 2002

Transactions in options written for the year ended December 31, 2002, were as follows:

	Number of Contracts/Notional Amounts		Premiums
Growth and Income Fund
Outstanding call options written at December 31, 2001	—		$	—
Call options written	166			16,405
Options expired	(84	)		(8,265	)
Outstanding call options written at December 31, 2002	82		$	8,140
Total Return Fund
Outstanding put and call options written at December 31, 2001	3,000,005		$	58,151
Call options written	176			82,449
Call swap options written	10,900,000			109,550
Call options expired	(131	)		(65,509	)
Call options closed	(45	)		(16,940	)
Put options written	275			111,824
Put swap options written	4,900,000			57,437
Put options expired	(151	)		(39,895	)
Put options exercised	(700,000	)		(10,063	)
Put options closed	(16	)		(4,740	)
Put swap options closed	(1,500,000	)		(19,050	)
Outstanding put and call options written at December 31, 2002	16,600,113		$	263,214

THE ENTERPRISE Group of Funds, Inc.

189

Notes to Financial Statements — (Continued)

December 31, 2002

5. Securities Lending

Certain funds may lend portfolio securities to qualified institutions. Loans are secured by collateral at least equal to 102% (105% for foreign securities) of the market value of securities loaned. The fund receives a portion of the income earned on the collateral and also continues to earn income on the loaned securities. Any gain or loss in the market price of the securities loaned that may occur during the term of the loan will be for the account of the fund. Security loans are subject to the risk of failure by the borrower to return the loaned securities in which case a fund could incur a loss. Securities currently out on loan have been denoted in the Portfolios of Investments.

The portfolios generally receive cash as collateral for securities lending. This cash is invested in the State Street Navigator Securities Lending Prime Portfolio, a money market fund registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The following summarizes the securities lending activity for each fund that had lending activity as of December 31, 2002:

Fund	Current Value of Securities on Loan at December 31, 2002		Current Value of Collateral Investments at December 31, 2002
Mid-Cap Growth	$	126,550	$	129,653
Small Company Growth		20,602,083		21,354,968
Small Company Value		38,464,392		41,553,453	(1)
Capital Appreciation		8,168,284		8,530,008
Deep Value		2,565,347		2,664,021
Equity		3,898,079		3,981,800
Equity Income		2,469,133		2,545,498
Growth		17,488,425		18,125,273
Growth and Income		2,672,507		2,788,812
International Growth		2,822,167		2,972,535
Global Financial Services		3,104,262		3,248,742
Global Health Care		2,874,207		2,966,033
Mergers and Acquisitions		2,836,871		3,004,889
Managed		1,999,790		2,084,500
Strategic Allocation		2,044,233		2,127,880
High-Yield Bond		40,077,121		40,867,890
Total Return		10,597,431		10,818,270

(1) Includes $9,204 of collateral in the form of U.S. Treasury Bonds ranging from 5.25% — 9.0%, maturity ranging from 05/15/16 — 05/15/30 and U.S. Treasury Notes, 7.875% maturing 11/15/04.

THE ENTERPRISE Group of Funds, Inc.

190

Notes to Financial Statements — (Continued)

December 31, 2002

6. Borrowings

EGF and another mutual fund under common control are parties to a $40 million redemption line of credit with State Street Bank and Trust Co. whereby each fund may borrow up to its prospectus defined limitation. EGF pays an allocated portion of an annual commitment fee equal to 0.10% of the committed amount. At December 31, 2002, there were no loans outstanding for EGF. Additionally, there were no EGF funds that had outstanding balances at any time during the year ended December 31, 2002.

7. Concentration Risks

Certain funds invest a high percentage of their assets in specific sectors of the market in their pursuit of a greater investment return. Fluctuations in these sectors of concentration may have a greater impact on the fund, positive or negative, than if the fund did not concentrate its investments in such sectors.

8. Capital Share Transactions

At December 31, 2002, EGF has 14,200,000,000 authorized shares at $0.001 par value. The following tables summarize the capital share activity by fund:

	Mid-Cap Growth Fund				Multi-Cap Growth Fund				Small Company Growth Fund
	Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001		Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001		Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001
Class A
Shares sold	534,262		759,384		979,160		8,944,594		799,973		1,461,445
Shares exchanged due to merger			522,416		—		—		—		—
Reinvestment of distributions	—		—		—		—		—		11,214
Shares redeemed	(633,019	)	(230,862	)	(2,800,446	)	(10,477,504	)	(637,062	)	(1,340,275	)
Net increase (decrease)	(98,757	)	1,050,938		(1,821,286	)	(1,532,910	)	162,911		132,384
Class B
Shares sold	423,573		582,276		1,179,001		1,727,958		575,024		458,208
Shares exchanged due to merger			680,247		—		—		—		—
Reinvestment of distributions	—		—		—		—		—		11,441
Shares redeemed	(522,770	)	(75,581	)	(2,619,977	)	(2,201,976	)	(470,774	)	(244,481	)
Net increase (decrease)	(99,197	)	1,186,942		(1,440,976	)	(474,018	)	104,250		225,168
Class C
Shares sold	206,298		327,494		382,070		519,196		340,612		113,876
Shares exchanged due to merger			206,721		—		—		—		—
Reinvestment of distributions	—		—		—		—		—		2,407
Shares redeemed	(369,519	)	(46,172	)	(1,029,622	)	(1,120,379	)	(177,496	)	(67,629	)
Net increase (decrease)	(163,221	)	488,043		(647,552	)	(601,183	)	163,116		48,654
Class Y
Shares sold	34,983		15,613		51,251		25,995		107,109		73,849
Shares exchanged due to merger			21,940		—		—		—		—
Reinvestment of distributions	—		—		—		—		—		2,124
Shares redeemed	(27,304	)	(4,167	)	(41,040	)	(38,728	)	(90,354	)	(60,127	)
Net increase (decrease)	7,679		33,386		10,211		(12,733	)	16,755		15,846
Total net increase (decrease)	(353,496	)	2,759,309		(3,899,603	)	(2,620,844	)	447,032		422,052

THE ENTERPRISE Group of Funds, Inc.

191

Notes to Financial Statements — (Continued)

December 31, 2002

	Small Company Value Fund				Capital Appreciation Fund				Deep Value Fund
	Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001		Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001		Year Ended Dec. 31, 2002		For the period May 31, 2001 to Dec. 31, 2001
Class A
Shares sold	11,037,256		20,715,417		1,495,419		1,868,833		591,055		432,004
Reinvestment of distributions	371,374		99,261		—		—		5,621		1,304
Shares redeemed	(11,562,883	)	(16,206,039	)	(1,921,205	)	(2,291,171	)	(212,791	)	(21,883	)
Net increase (decrease)	(154,253	)	4,608,639		(425,786	)	(422,338	)	383,885		411,435
Class B
Shares sold	7,416,317		7,393,249		587,258		434,769		507,589		502,713
Reinvestment of distributions	344,930		79,439		—		—		1,941		1,158
Shares redeemed	(5,170,377	)	(2,317,364	)	(677,333	)	(552,109	)	(139,190	)	(13,265	)
Net increase (decrease)	2,590,870		5,155,324		(90,075	)	(117,340	)	370,340		490,606
Class C
Shares sold	4,766,139		4,555,804		290,551		171,796		182,040		210,749
Reinvestment of distributions	152,700		34,976		—		—		554		466
Shares redeemed	(3,329,465	)	(1,821,264	)	(242,112	)	(225,790	)	(75,032	)	(5,251	)
Net increase (decrease)	1,589,374		2,769,516		48,439		(53,994	)	107,562		205,964
Class Y
Shares sold	665,393		821,442		36,330		7,754		29,408		16,767
Reinvestment of distributions	10,253		2,042		—		—		244		18
Shares redeemed	(558,557	)	(94,094	)	(9,860	)	(7,498	)	(13,285	)	(103	)
Net increase (decrease)	117,089		729,390		26,470		256		16,367		16,682
Total net increase (decrease)	4,143,080		13,262,869		(440,952	)	(593,416	)	878,154		1,124,957
	Equity Fund				Equity Income Fund				Growth Fund
	Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001		Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001		Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001
Class A
Shares sold	2,740,589		5,003,281		491,083		2,192,462		18,002,341		24,111,796
Shares exchanged due to merger	—		682,114		—		—		411,379		—
Reinvestment of distributions	—		55,892		58,261		84,781		—		—
Shares redeemed	(4,016,093	)	(3,603,179	)	(861,023	)	(2,388,877	)	(14,057,141	)	(28,113,482	)
Net increase (decrease)	(1,275,504	)	2,138,108		(311,679	)	(111,634	)	4,356,579		(4,001,686	)
Class B
Shares sold	1,894,955		3,145,331		456,595		450,598		4,813,544		4,177,385
Shares exchanged due to merger	—		598,911		—		—		425,941		—
Reinvestment of distributions	—		55,266		21,225		31,715		—		—
Shares redeemed	(3,106,499	)	(2,286,586	)	(530,423	)	(312,525	)	(7,938,718	)	(5,900,701	)
Net increase (decrease)	(1,211,544	)	1,512,922		(52,603	)	169,788		(2,699,233	)	(1,723,316	)
Class C
Shares sold	1,853,244		3,173,182		159,842		139,436		3,915,224		2,464,296
Shares exchanged due to merger	—		219,684		—		—		126,443		—
Reinvestment of distributions	—		32,228		4,521		6,729		—		—
Shares redeemed	(2,801,236	)	(1,619,397	)	(158,955	)	(106,072	)	(3,207,521	)	(2,728,127	)
Net increase (decrease)	(947,992	)	1,805,697		5,408		40,093		834,146		(263,831	)
Class Y
Shares sold	173,709		142,883		1,796		10,436		1,049,128		564,575
Shares exchanged due to merger	—		18,960		—		—		5,864		—
Reinvestment of distributions	—		509		179		210		—		—
Shares redeemed	(120,133	)	(37,086	)	(1,633	)	(1,017	)	(1,007,779	)	(860,053	)
Net increase (decrease)	53,576		125,266		342		9,629		47,213		(295,478	)
Total net increase (decrease)	(3,381,464	)	10,065,268		(358,532	)	107,876		2,538,705		(6,284,311	)

THE ENTERPRISE Group of Funds, Inc.

192

Notes to Financial Statements — (Continued)

December 31, 2002

	Growth and Income Fund				International Growth Fund				Global Financial Services Fund
	Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001		Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001		Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001
Class A
Shares sold	539,672		1,184,227		2,174,814		22,458,681		951,409		596,263
Shares exchanged due to merger	—		—		—		389,804		—		—
Reinvestment of distributions	—		10,987				—		53,247		92,100
Shares redeemed	(1,010,028	)	(1,097,147	)	(2,617,738	)	(22,863,445	)	(1,647,284	)	(699,715	)
Net increase (decrease)	(470,356	)	98,067		(442,924	)	(14,960	)	(642,628	)	(11,352	)
Class B
Shares sold	534,944		1,051,827		645,143		339,632		309,745		630,761
Shares exchanged due to merger	—		—				258,980		—		—
Reinvestment of distributions	—		15,753				—		40,087		52,999
Shares redeemed	(1,114,868	)	(645,810	)	(688,225	)	(331,049	)	(458,460	)	(612,844	)
Net increase (decrease)	(579,924	)	421,770		(43,082	)	267,563		(108,628	)	70,916
Class C
Shares sold	175,639		291,393		303,091		968,513		53,146		183,791
Reinvestment of distributions	—		—				233,951		—		—
Reinvestment of distributions	—		2,857				—		7,831		12,061
Shares redeemed	(296,990	)	(188,752	)	(344,947	)	(950,861	)	(110,600	)	(129,472	)
Net increase (decrease)	(121,351	)	105,498		(41,856	)	251,603		(49,623	)	66,380
Class Y
Shares sold	104,223		38,457		1,700,992		1,500,327		45,773		8,839
Shares exchanged due to merger	—		—				23,393		—		—
Reinvestment of distributions	—		2,025				—		43,532		48,326
Shares redeemed	(93,080	)	(78,100	)	(1,748,782	)	(1,568,469	)	(37,000	)	(4,539	)
Net increase (decrease)	11,143		(37,618	)	(47,790	)	(44,749	)	52,305		52,626
Total net increase (decrease)	(1,160,488	)	1,865,033		(575,652	)	459,457		(748,574	)	178,570
	Global Health Care Fund				Global Socially Responsive Fund				Mergers and Acquisitions Fund
	Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001		Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001		Year Ended Dec. 31, 2002		For the Period Feb. 28, 2001 to Dec. 31, 2001
Class A
Shares sold	288,602		730,321		201,796		128,996		1,694,082		2,590,957
Reinvestment of distributions	—		—		—		355		18,444		23,412
Shares redeemed	(378,697	)	(285,326	)	(111,521	)	(6,216	)	(877,760	)	(250,000	)
Net increase (decrease)	(90,095	)	444,995		90,275		123,135		834,766		2,364,369
Class B
Shares sold	265,550		764,472		56,735		70,414		843,980		2,210,305
Reinvestment of distributions	—		—		—		171		15,014		21,593
Shares redeemed	(282,901	)	(140,072	)	(25,875	)	(10,774	)	(513,537	)	(122,389	)
Net increase (decrease)	(17,351	)	624,400		30,860		59,811		345,457		2,109,509
Class C
Shares sold	79,234		262,035		43,236		22,855		1,081,565		1,245,976
Reinvestment of distributions	—		—		—		32		10,449		10,657
Shares redeemed	(230,052	)	(83,077	)	(8,063	)	(4,793	)	(341,011	)	(108,003	)
Net increase (decrease)	(150,818	)	178,958		35,173		18,094		751,003		1,148,630
Class Y
Shares sold	24,314		12,064		5,042		3,876		96,882		79,946
Reinvestment of distributions	—		—		—		7		146		208
Shares redeemed	(23,049	)	(10,752	)	(1,236	)	(153	)	(64,712	)	(8,727	)
Net increase (decrease)	1,265		1,312		3,806		3,730		32,316		71,427
Total net increase (decrease)	(256,999	)	1,249,665		160,114		204,770		1,963,542		5,693,935

THE ENTERPRISE Group of Funds, Inc.

193

Notes to Financial Statements — (Continued)

December 31, 2002

	Technology Fund				Managed Fund
	Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001		Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001
Class A
Shares sold	657,257		8,744,434		1,194,017		1,916,979
Shares exchanged due to merger	364,577		—		—		—
Reinvestment of distributions	—		—		—		—
Shares redeemed	(2,284,755	)	(9,816,659	)	(4,211,729	)	(3,291,298	)
Net increase (decrease)	(1,262,921	)	(1,072,225		(3,017,712	)	(1,374,319	)
Class B
Shares sold	931,621		1,103,173		1,490,360		1,556,585
Shares exchanged due to merger	317,036		—		—		—
Reinvestment of distributions	—		—		—		—
Shares redeemed	(1,919,183	)	(1,803,859	)	(3,597,606	)	(2,263,923	)
Net increase (decrease)	(670,526	)	(700,686	)	(2,107,246	)	(707,338	)
Class C
Shares sold	181,395		281,139		165,458		217,825
Shares exchanged due to merger	70,757		—		—		—
Reinvestment of distributions	—		—		—		—
Shares redeemed	(543,684	)	(822,633	)	(320,164	)	(344,296	)
Net increase (decrease)	(291,532	)	(541,494		(154,706	)	(126,471	)
Class Y
Shares sold	28,949		26,227		303,002		585,660
Shares exchanged due to merger	17,801		—		—		—
Reinvestment of distributions	—		—		—		—
Shares redeemed	(24,950	)	(23,483	)	(6,388,655	)	(1,307,339	)
Net increase (decrease)	21,800		2,744		(6,085,653	)	(721,679	)
Total net increase (decrease)	(2,203,179	)	(2,311,661		(11,365,317	)	(2,929,807	)

	Strategic Allocation Fund				Government Securities Fund
	Year Ended Dec. 31, 2002		For the Period Aug. 31, 2001 to Dec. 31, 2001		Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001
Class A
Shares sold	591,916		1,042,242		5,272,124		9,766,147
Reinvestment of distributions	—		1,225		327,000		304,166
Shares redeemed	(414,708	)	(237,464	)	(3,478,212	)	(9,153,357	)
Net increase (decrease)	177,208		806,003		2,120,912		916,956
Class B
Shares sold	793,361		527,508		4,167,081		2,859,890
Reinvestment of distributions	—		905		218,806		166,705
Shares redeemed	(245,031	)	(4,096	)	(1,658,294	)	(1,032,287	)
Net increase (decrease)	548,330		524,317		2,727,593		1,994,308
Class C
Shares sold	341,444		311,187		1,443,537		1,162,007
Reinvestment of distributions	—		405		53,386		35,967
Shares redeemed	(128,235	)	(1,088	)	(682,718	)	(557,688	)
Net increase (decrease)	213,209		310,504		814,205		640,286
Class Y
Shares sold	85,970		120,100		304,219		63,018
Reinvestment of distributions	—		231		31,413		33,905
Shares redeemed	(65,252	)	(10	)	(159,523	)	(69,104	)
Net increase (decrease)	20,718		120,321		176,109		27,819
Total net increase (decrease)	959,465		1,761,145		5,838,819		3,579,369

THE ENTERPRISE Group of Funds, Inc.

194

Notes to Financial Statements — (Continued)

December 31, 2002

	High-Yield Bond Fund				Short Duration Bond Fund		Tax-Exempt Income Fund
	Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001		For the period Nov. 29, 2002 to Dec. 31, 2002		Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001
Class A
Shares sold	7,381,246		5,761,681		216,195		376,592		2,020,594
Reinvestment of distributions	470,406		430,468		62		45,183		44,997
Shares redeemed	(3,549,108	)	(5,053,094	)	(1,088	)	(336,192	)	(2,071,218	)
Net increase (decrease)	4,302,544		1,139,055		215,169		85,583		(5,627	)
Class B
Shares sold	2,388,795		2,259,027		226,583		219,630		234,845
Reinvestment of distributions	274,734		235,420		82		12,638		9,807
Shares redeemed	(1,489,245	)	(824,603	)	(103	)	(127,987	)	(219,542	)
Net increase (decrease)	1,174,284		1,669,844		226,562		104,281		25,110
Class C
Shares sold	2,635,345		1,385,018		210,817		192,017		50,454
Reinvestment of distributions	93,255		55,338		53		5,215		3,462
Shares redeemed	(875,431	)	(695,531	)	(20	)	(66,194	)	(35,014	)
Net increase (decrease)	1,853,169		744,825		210,850		131,038		18,902
Class Y
Shares sold	309,573		381,670		110,007		1,680		16,613
Reinvestment of distributions	37,368		21,123		—		120		88
Shares redeemed	(154,659	)	(44,451	)	—		(396	)	(14,485	)
Net increase (decrease)	192,282		358,342		110,007		1,404		2,216
Total net increase (decrease)	7,522,279		3,912,066		762,588		322,306		40,601

	Total Return Fund				Money Market Fund
	Year Ended Dec. 31, 2002		For the Period Aug. 31, 2001 to Dec. 31, 2001		Year Ended Dec. 31, 2002		Year Ended Dec. 31, 2001
Class A
Shares sold	2,182,937		770,250		240,934,087		1,080,795,303
Reinvestment of distributions	94,521		9,090		3,313,236		9,276,295
Shares redeemed	(384,283	)	(82,793	)	(231,588,964	)	(1,110,793,783	)
Net increase (decrease)	1,893,175		696,547		12,658,359		(20,722,185	)
Class B
Shares sold	1,954,970		623,629		56,933,243		61,258,138
Reinvestment of distributions	73,771		6,865		601,664		1,173,030
Shares redeemed	(302,061	)	(18,269	)	(45,256,820	)	(46,482,551	)
Net increase (decrease)	1,726,680		612,225		12,278,087		15,948,617
Class C
Shares sold	1,473,408		299,826		22,913,569		39,136,728
Reinvestment of distributions	42,816		2,751		135,543		304,784
Shares redeemed	(193,511	)	(5,435	)	(20,906,021	)	(37,518,407	)
Net increase (decrease)	1,322,713		297,142		2,143,091		1,923,105
Class Y
Shares sold	87,093		150,853		1,845,363		2,534,486
Reinvestment of distributions	6,649		2,406		42,670		108,490
Shares redeemed	(42,266	)	(4,207	)	(749,898	)	(2,148,428	)
Net increase (decrease)	51,476		149,052		1,138,135		494,548
Total net increase (decrease)	4,994,044		1,754,966		28,217,672		(2,355,915	)

THE ENTERPRISE Group of Funds, Inc.

195

Notes to Financial Statements — (Continued)

December 31, 2002

9. Redemption Fees

EGF charges a 2 percent redemption fee on non-Money Market Fund exchanges or redemptions done within 30 days or less. These redemption fees are collected and retained by the affected class of shares for the benefit of the remaining shareholders of that class and are recorded by the fund as paid in capital. For the year ended December 31, 2002 redemption fees charged and collected by the funds were as follows:

Fund	Class A		Class B		Class C		Class Y
Small Company Growth	$	3,889	$	—	$	—	$	—
Small Company Value		80,470		—		—		—
Capital Appreciation		13,609		—		—		—
Equity		3,865		—		—		—
Growth		19,606		—		—		—
International Growth		48,722		—		4,438		7,593
Global Socially Responsive		7,701		2,875		1,435		345
Technology		6,725		—		—		—
Government Securities		62,247		11,557		—		—
High-Yield Bond		66,017		—		787		—

10. Federal Income Tax Information

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 of America. These differences are primarily due to differing treatments for net operating losses, futures, options transactions, foreign currency transactions, paydowns, losses deferred due to wash sales, excise tax regulations and investments in passive foreign investment companies and the utilization of earnings and profits distributed to shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes.

Permanent book and tax basis differences, if any, 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.

The tax character of distributions paid during 2002 was as follows:

Fund	Ordinary Income		Tax-Exempt Income		Long-Term Capital Gain		Total Distributions
Small Company Value	$	—	$	—	$	6,714,356	$	6,714,356
Deep Value		69,651		—		—		69,651
Equity Income		796,349		—		917,597		1,713,946
Global Financial Services		434,171		—		408,784		842,955
Mergers and Acquisitions		520,375		—		—		520,375
Government Securities		9,639,063		—		—		9,639,063
High-Yield Bond		11,662,638		—		—		11,662,638
Short Duration Bond		8,878		—		—		8,878
Tax-Exempt Income		—		1,172,290		71,213		1,243,503
Total Return		2,373,537		—		190,349		2,563,886
Money Market		4,182,161		—		—		4,182,161

THE ENTERPRISE Group of Funds, Inc.

196

Notes to Financial Statements — (Continued)

December 31, 2002

The tax character of distributable earnings/accumulated losses at December 31, 2002 was as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-Term Gain		Net Unrealized Gain (Loss)			Capital Loss Carryforward			Expiration
Mid-Cap Growth	$	—	$	—	$	222,735		$	10,201,049	*	2008-2010
Multi-Cap Growth		—		—		(3,632,790	)		144,560,053		2008-2010
Small Company Growth		—		—		(17,470,221	)		3,856,211		2009-2010
Small Company Value		—		—		(59,940,438	)		—		—
Capital Appreciation		—		—		1,461,412			73,317,835		2009-2010
Deep Value		—		—		(2,141,299	)		1,061,627		2010
Equity		—		—		(62,004,379	)		25,130,759	*	2008-2010
Equity Income		—		—		(9,466,187	)		4,390,869		2010
Growth		—		—		(75,550,988	)		295,386,261		2007-2010
Growth and Income		—		—		(22,378,833	)		22,080,694		2009-2010
International Growth		—		—		(9,851,968	)		30,619,301	*	2008-2010
Global Financial Services		—		—		(2,925,797	)		24,497		2010
Global Health Care		—		—		(44,843	)		7,618,904		2009-2010
Global Socially Responsive		—		—		(269,069	)		840,323		2009-2010
Mergers and Acquisitions		—		—		(2,714,247	)		—		—
Technology		—		—		(6,467,535	)		287,491,329		2008-2010
Managed		—		—		(12,928,298	)		36,834,390		2009-2010
Strategic Allocation		2,442		—		(4,875,109	)		177,711		2010
Government Securities		—		—		27,705,533			1,969,902		2003-2004
High-Yield Bond		112,582		—		(12,444,242	)		24,024,793		2007-2010
Short Duration Bond		—		—		13,242			—		—
Tax-Exempt Income		—		—		2,316,477			—		—
Total Return		261,988		155,704		295,744			—		—
Money Market		4,889		—		—			4,891		2009

Included in the Growth and Technology Funds are capital loss carryforward amounts acquired in connection with the respective mergers that occurred in 2002 (Note 1). Utilization of the losses (as shown below) may be limited in accordance with Federal Tax regulations:

Fund	Capital Loss Carryforward Acquired*
Growth	$	1,475,581
Technology		1,735,208

* These losses may be further limited due to IRS regulations.

THE ENTERPRISE Group of Funds, Inc.

197

Notes to Financial Statements — (Continued)

December 31, 2002

Tax Basis Unrealized Gain (Loss) on Investments and Distributions

At December 31, 2002, 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:

Fund	Tax Cost		Tax Unrealized Gain		Tax Unrealized (Loss)			Net Unrealized Gain (Loss)
Mid-Cap Growth	$	10,160,727	$	635,745	$	(413,010	)	$	222,735
Multi-Cap Growth		76,591,578		2,874,141		(6,506,931	)		(3,632,790	)
Small Company Growth		100,513,586		8,132,872		(25,603,093	)		(17,470,221	)
Small Company Value		491,017,844		41,260,735		(101,201,173	)		(59,940,438	)
Capital Appreciation		155,030,995		11,809,583		(10,348,171	)		1,461,412
Deep Value		17,244,088		201,769		(2,343,068	)		(2,141,299	)
Equity		151,350,856		5,594,803		(67,599,182	)		(62,004,379	)
Equity Income		107,554,990		3,454,775		(12,920,962	)		(9,466,187	)
Growth		1,402,716,873		56,268,592		(131,819,580	)		(75,550,988	)
Growth and Income		169,241,314		8,471,660		(30,850,493	)		(22,378,833	)
International Growth		66,258,601		938,568		(10,790,536	)		(9,851,968	)
Global Financial Services		26,462,429		2,028,931		(4,954,728	)		(2,925,797	)
Global Health Care		11,550,098		392,300		(437,143	)		(44,843	)
Global Socially Responsive		4,397,328		147,865		(416,934	)		(269,069	)
Mergers and Acquisitions		76,874,969		1,620,759		(4,335,006	)		(2,714,247	)
Technology		58,689,577		3,049,505		(9,517,040	)		(6,467,535	)
Managed		125,433,030		2,344,327		(15,272,625	)		(12,928,298	)
Strategic Allocation		26,248,113		460,743		(5,335,852	)		(4,875,109	)
Government Securities		250,605,673		27,705,533		—			27,705,533
High-Yield Bond		192,102,770		5,722,417		(18,166,659	)		(12,444,242	)
Short Duration Bond		7,344,122		18,047		(4,805	)		13,242
Tax-Exempt Income		34,069,997		2,318,921		(2,444	)		2,316,477
Total Return		69,369,897		1,125,163		(829,419	)		295,744

Post October Loss Deferral

Under the current tax law, capital and currency losses realized after October 31, 2002 may be deferred and treated as occurring on the first day of the following fiscal year. For fiscal year ended December 31, 2002, the following Funds elected to defer capital losses realized between November 1, 2002 and December 31, 2002 in the following amounts:

Fund	Balance
Mid-Cap Growth	$	392,973
Multi-Cap Growth		4,649,223
Small Company Value		2,987,259
Deep Value		400,290
Equity		7,619,779
Growth		10,782,082
Growth and Income		18,773,357
International Growth		1,621,490
Global Health Care		2,186
Global Socially Responsible		155,843
Mergers and Acquisitions		599,184
Technology		1,059,903
Managed		84,071
Strategic Allocation		63,495
High-Yield Bond		1,220,149
Tax-Exempt Income		18,960

THE ENTERPRISE Group of Funds, Inc.

198

Notes to Financial Statements — (Continued)

December 31, 2002

11. Subsequent Event

On February 10, 2003 the Mid-Cap Growth and Global Health Care Funds’ shareholders approved tax free exchanges of shares between the Mid-Cap Growth and Managed Funds and the Global Health Care and Capital Appreciation Funds, respectively, wherein the latter fund in each case would acquire all of the net assets of the former after the close of business on February 21, 2003.

THE ENTERPRISE Group of Funds, Inc.

199

Report of Independent Accountants

To the Board of Directors and Shareholders of

The Enterprise Group of Funds, Inc.:

In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Mid-Cap Growth, Multi-Cap Growth, Small Company Growth, Small Company Value, Capital Appreciation, Deep Value, Equity, Equity Income, Growth, Growth and Income, International Growth, Global Financial Services, Global Health Care, Global Socially Responsive, Mergers and Acquisitions, Technology (formerly the Internet Fund), Managed, Strategic Allocation, Government Securities, High-Yield Bond, Short Duration Bond, Tax-Exempt Income, Total Return and Money Market Funds (constituting The Enterprise Group of Funds, Inc., hereafter referred to as the “Fund”) at December 31, 2002, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2002 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

February 14, 2003

THE ENTERPRISE Group of Funds, Inc.

200

Shareholder Proxy Voting Information (Unaudited)

On August 16, 2002, shareholders of the Global Technology Fund voted on and approved their Agreement and Plan of Reorganization into the Technology Fund as follows:

	Affirmative	Against	Abstain
	1,323,692.629	46,018.280	108,632.829
On April 30, 2002 shareholders of the following funds voted on changing fundamental investment restrictions or policies, relating to the following:
(a) fund diversification;
	Affirmative	Against	Abstain
Growth Fund	41,640,339.380	1,956,030.677	6,352,621.717
Equity Income Fund	2,632,484.800	113,571.443	222,742.720
Capital Appreciation Fund	3,335,383.887	177,560.157	404,678.315
Government Securities Fund	6,922,265.014	539,290.160	578,901.165
High-Yield Bond Fund	6,449,472.310	264,570.384	684,639.305
Tax-Exempt Income Fund	1,161,847.439	38,145.641	66,861.836
International Growth Fund	3,272,649.978	90,333.721	181,510.574
Mid-Cap Growth Fund	1,552,679.652	41,476.810	101,017.914
Internet Fund	4,584,884.151	237,152.742	668,659.562
Multi-Cap Growth Fund	7,081,324.888	339,570.641	1,120,118.255
Balanced Fund	1,639,972.244	165,001.028	77,147.958
Global Socially Responsive Fund	208,859.354	3,698.628	977.024
Small Company Value Fund	25,855,644.532	1,118,986.757	3,259,292.386
Managed Fund	15,937,001.072	446,258.372	663,154.991
Equity Fund	12,010,222.756	607,581.069	1,824,428.378
Growth and Income Fund	3,151,116.661	159,527.294	362,969.709
Small Company Growth Fund	1,592,864.279	64,796.354	226,013.955
Global Financial Services Fund	2,727,366.405	39,646.293	35,170.023
(b) issuing senior securities, borrowing money or pledging assets;
	Affirmative	Against	Abstain
Growth Fund	39,804,509.944	3,551,779.272	6,592,702.558
Equity Income Fund	2,514,171.192	223,699.454	230,928.317
Capital Appreciation Fund	3,190,784.803	309,050.063	417,787.493
Government Securities Fund	6,784,956.552	683,155.705	572,344.082
High-Yield Bond Fund	6,242,507.227	482,917.665	673,257.107
Tax-Exempt Income Fund	1,080,334.117	123,689.372	62,831.427
International Growth Fund	3,183,771.088	178,148.611	182,574.574
Mid-Cap Growth Fund	1,517,476.173	79,394.316	98,303.887
Global Health Care Fund	1,048,253.019	80,803.297	102,896.784
Internet Fund	4,418,464.855	389,646.410	682,585.190
Multi-Cap Growth Fund	6,837,665.004	565,269.356	1,138,079.424
Balanced Fund	1,611,030.779	184,124.833	86,965.618
Global Socially Responsive Fund	205,644.509	6,913.473	977.024
Small Company Value Fund	25,186,080.645	1,773,521.159	3,274,321.871
Managed Fund	15,553,555.206	784,129.421	708,729.808
Equity Fund	11,587,308.786	1,020,145.444	1,834,777.973
Growth and Income Fund	3,035,935.449	264,162.662	373,515.553
Small Company Growth Fund	1,539,607.469	113,829.076	230,238.043
Global Financial Services Fund	2,684,654.813	78,680.673	38,847.235
Mergers and Acquisitions Fund	2,391,662.694	155,123.941	318,649.203

THE ENTERPRISE Group of Funds, Inc.

201

(c) buying and selling real estate;
	Affirmative	Against	Abstain
Growth Fund	40,722,102.044	2,892,646.076	6,334,243.654
Equity Income Fund	2,575,666.835	170,428.654	222,703.474
Capital Appreciation Fund	3,271,801.595	238,634.783	407,185.981
Government Securities Fund	6,888,097.884	571,309.146	581,049.309
High-Yield Bond Fund	6,357,009.001	380,995.692	660,677.306
Tax-Exempt Income Fund	1,100,240.634	101,878.261	64,736.021
International Growth Fund	3,238,713.389	127,834.853	177,946.031
Mid-Cap Growth Fund	1,524,285.822	72,899.901	97,988.653
Global Health Care Fund	1,055,660.488	75,391.365	100,361.247
Internet Fund	4,497,994.221	318,526.872	674,175.362
Multi-Cap Growth Fund	6,917,070.518	493,159.592	1,130,783.674
Balanced Fund	1,623,143.292	184,486.215	74,491.723
Global Socially Responsive Fund	206,852.091	5,705.891	977.024
Small Company Value Fund	25,537,919.778	1,414,475.988	3,281,527.909
Managed Fund	15,775,111.222	605,024.011	666,279.202
Equity Fund	11,908,245.118	716,222.558	1,817,764.527
Growth and Income Fund	3,074,645.874	232,193.958	366,773.832
Small Company Growth Fund	1,563,547.275	93,525.618	226,601.695
Global Financial Services Fund	2,710,797.002	56,687.518	34,698.201
Mergers and Acquisitions Fund	2,371,033.345	176,358.274	318,044.219
(d) buying and selling commodities and commodity contracts;
	Affirmative	Against	Abstain
Growth Fund	39,911,632.574	3,588,065.882	6,449,293.318
Equity Income Fund	2,526,117.098	213,975.650	228,706.215
Capital Appreciation Fund	3,170,585.102	336,516.522	410,520.735
Government Securities Fund	6,698,588.144	739,012.318	602,855.877
High-Yield Bond Fund	6,190,644.858	507,180.009	700,857.132
Tax-Exempt Income Fund	1,097,062.125	106,602.005	63,190.786
International Growth Fund	3,186,439.621	191,392.853	166,661.799
Mid-Cap Growth Fund	1,505,445.112	91,702.596	98,026.668
Global Health Care Fund	1,024,943.684	105,339.170	101,670.246
Internet Fund	4,416,510.257	395,774.723	678,411.475
Multi-Cap Growth Fund	6,856,364.179	561,975.631	1,122,673.974
Balanced Fund	1,592,126.308	204,342.167	85,652.755
Global Socially Responsive Fund	206,194.142	6,415.026	925.838
Small Company Value Fund	25,109,473.832	1,830,512.249	3,293,937.594
Managed Fund	15,613,211.044	745,098.685	688,104.706
Equity Fund	11,634,057.964	985,770.253	1,822,403.986
Growth and Income Fund	3,043,302.937	252,672.429	377,638.298
Small Company Growth Fund	1,527,769.694	124,729.425	231,175.469
Global Financial Services Fund	2,689,764.676	79,260.254	33,157.791
Mergers and Acquisitions Fund	2,327,770.912	215,848.577	321,816.349

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202

(e) fund concentration;
	Affirmative	Against	Abstain
Growth Fund	40,727,355.398	2,540,354.990	6,681,281.386
Equity Income Fund	2,555,201.503	161,389.742	252,207.718
Capital Appreciation Fund	3,270,406.680	223,340.721	423,874.958
Government Securities Fund	6,883,186.950	558,239.921	599,029.468
High-Yield Bond Fund	6,313,588.251	354,159.920	730,933.828
Tax-Exempt Income Fund	1,112,250.875	87,565.307	67,038.734
International Growth Fund	3,223,782.843	126,057.650	194,653.780
Mid-Cap Growth Fund	1,532,201.920	57,382.973	105,589.483
Multi-Cap Growth Fund	6,972,872.006	398,196.947	1,169,944.831
Balanced Fund	1,627,485.976	175,930.314	78,704.940
Global Socially Responsive Fund	206,146.256	6,343.765	1,044.985
Small Company Value Fund	25,480,114.893	1,386,963.202	3,366,845.580
Managed Fund	15,710,080.462	600,165.896	736,168.077
Equity Fund	11,832,279.358	748,676.789	1,861,276.056
Growth and Income Fund	3,063,927.206	211,135.577	398,550.881
Small Company Growth Fund	1,560,480.450	79,887.679	243,306.459
Mergers and Acquisitions Fund	2,354,062.993	173,282.723	338,090.122
(f) engaging in underwriting;
	Affirmative	Against	Abstain
Growth Fund	40,423,489.997	2,972,743.742	6,552,758.035
Equity Income Fund	2,519,786.401	206,925.882	242,086.680
Capital Appreciation Fund	3,235,007.818	260,690.300	421,924.241
Government Securities Fund	6,747,522.338	686,334.598	606,599.403
High-Yield Bond Fund	6,252,881.604	465,424.893	680,375.502
Tax-Exempt Income Fund	1,110,804.243	91,795.018	64,255.655
International Growth Fund	3,211,668.188	147,154.694	185,671.391
Mid-Cap Growth Fund	1,513,999.690	80,570.698	100,603.988
Global Health Care Fund	1,057,999.356	68,964.580	104,989.164
Internet Fund	4,447,269.040	344,552.405	698,875.010
Multi-Cap Growth Fund	6,885,435.671	493,972.645	1,161,605.468
Balanced Fund	1,609,113.719	178,494.869	94,512.642
Global Socially Responsive Fund	206,135.532	6,473.636	925.838
Small Company Value Fund	25,340,828.760	1,560,079.048	3,333,015.867
Managed Fund	15,657,126.636	638,944.531	750,343.268
Equity Fund	11,776,416.947	798,752.129	1,867,063.127
Growth and Income Fund	3,048,247.400	233,025.560	392,340.704
Small Company Growth Fund	1,547,485.996	102,933.420	233,255.172
Global Financial Services Fund	2,687,858.624	75,656.929	38,667.168
Mergers and Acquisitions Fund	2,372,553.103	154,033.700	338,849.035

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203

(g) making loans;
	Affirmative	Against	Abstain
Growth Fund	39,721,767.766	3,627,643.166	6,599,580.842
Equity Income Fund	2,502,375.376	234,676.639	231,746.948
Capital Appreciation Fund	3,177,137.598	328,485.836	411,998.925
Government Securities Fund	6,773,753.013	703,857.111	562,846.215
High-Yield Bond Fund	6,280,632.876	465,497.001	652,552.122
Tax-Exempt Income Fund	1,074,584.648	130,061.658	62,208.610
International Growth Fund	3,192,660.081	181,081.693	170,752.499
Mid-Cap Growth Fund	1,510,303.068	88,196.539	96,674.769
Global Health Care Fund	1,049,332.397	80,113.425	102,507.278
Internet Fund	4,397,433.776	399,780.949	693,481.730
Multi-Cap Growth Fund	6,804,660.838	612,866.900	1,123,486.046
Balanced Fund	1,610,912.094	193,190.064	78,019.072
Global Socially Responsive Fund	205,014.438	7,484.934	1,035.634
Small Company Value Fund	25,114,329.416	1,809,593.562	3,310,000.697
Managed Fund	15,590,963.669	754,307.185	701,143.581
Equity Fund	11,547,913.280	1,028,879.108	1,865,439.815
Growth and Income Fund	3,033,956.954	267,182.316	372,474.394
Small Company Growth Fund	1,528,834.487	127,516.200	227,323.901
Global Financial Services Fund	2,690,843.005	75,531.329	35,808.387
Mergers and Acquisitions Fund	2,335,622.908	211,241.921	318,571.009
(h) certain other investment restrictions as described in the Proxy Statement.
	Affirmative	Against	Abstain
Growth Fund	40,412,277.294	2,687,466.884	6,849,247.596
Equity Income Fund	2,565,222.400	154,821.307	248,755.256
Capital Appreciation Fund	3,226,013.508	227,464.942	464,143.909
Government Securities Fund	6,851,899.554	533,786.775	654,770.010
High-Yield Bond Fund	6,199,503.627	457,352.134	741,826.238
Tax-Exempt Income Fund	1,078,422.156	91,646.009	96,786.751
International Growth Fund	3,225,674.417	113,614.669	205,205.187
Mid-Cap Growth Fund	1,525,391.499	64,952.740	104,830.137
Global Health Care Fund	1,077,569.067	51,833.611	102,550.422
Internet Fund	4,437,013.790	314,433.727	739,248.938
Multi-Cap Growth Fund	6,873,345.477	465,783.862	1,201,884.445
Balanced Fund	1,612,525.902	170,738.280	98,857.048
Global Socially Responsive Fund	206,852.554	5,646.818	1,035.634
Small Company Value Fund	25,309,510.894	1,423,614.813	3,500,797.968
Managed Fund	15,687,606.653	565,770.449	793,037.333
Equity Fund	11,624,168.884	889,414.624	1,928,648.695
Growth and Income Fund	3,071,438.805	198,348.986	403,825.873
Small Company Growth Fund	1,536,986.167	95,926.704	250,761.717
Global Financial Services Fund	2,706,714.104	51,292.082	44,176.535
Mergers and Acquisitions Fund	2,337,052.923	187,614.863	340,768.052

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204

NAME, AGE AND ADDRESS	POSITIONS HELD	LENGTH OF SERVICE (YEARS)	PRINCIPAL OCCUPATIONS PAST FIVE YEARS	NUMBER OF PORTFOLIOS IN EGF	OTHER DIRECTORSHIPS
NON-INTERESTED PARTIES:
Arthur T. Dietz (79) Atlanta, GA	Director and Audit Committee Member	30	President, ATD Advisory Corp.	24	EAT - 17 Portfolios
Arthur Howell, Esquire (84) Atlanta, GA	Director and Audit Committee Chairman	34	Of Counsel, Alston & Bird LLP	24	EAT - 17 Portfolios
William A. Mitchell, Jr. (62) Atlanta, GA	Director	15	Chairman, Carter & Associates (real estate development)	24	EAT - 17 Portfolios
Lonnie H. Pope (68) Macon, GA	Director and Audit Committee Member	17	CEO, Longleaf Industries, Inc. (chemical manufacturing)	24	EAT - 17 Portfolios
INTERESTED PARTIES:
Victor Ugolyn (54) Atlanta, GA	Chairman, President & Chief Executive Officer, Director	11	Chairman, President & CEO, ECM, EFD, and EAT	24	EAT - 17 Portfolios, EGF plc - 11 Portfolios
Michael L. Roth (57) New York, NY	Director	11	Chairman and CEO, The MONY Group Inc.	24	EAT - 17 Portfolios, EGF plc - 11 Portfolios, The MONY Group Inc., Pitney Bowes, Inc., Interpublic Group of Companies, Inc.
Samuel J. Foti (50) New York, NY	Director	7	President and COO, The MONY Group Inc.	24	EAT - 17 Portfolios, EGF plc - 11 Portfolios, The MONY Group Inc.
Phillip G. Goff (39) Atlanta, GA	Vice President and Chief Financial Officer	7	Senior Vice President and CFO, EFD; Vice President and CFO, EAT and ECM	—	—
Herbert M. Williamson (51) Atlanta, GA	Treasurer and Assistant Secretary	14	Vice President, ECM; Assistant Secretary and Treasurer, EAT, ECM and EFD	—	—
Catherine R. McClellan (47) Atlanta, GA	Secretary	12	Senior Vice President, Secretary and Chief Counsel, ECM and EFD; Secretary, EAT	—	—

Footnotes:

EGF - The Enterprise Group of Funds, Inc.	EFD - Enterprise Fund Distributors, Inc.
EAT - Enterprise Accumulation Trust	EGF plc - Enterprise Global Funds plc
ECM - Enterprise Capital Management, Inc.

The Enterprise Group of Funds Statement of Additional Information (SAI) includes additional information about the Directors and is available, without charge, upon request by calling 1-800-432-4320 or 1-800-368-3527.

THE ENTERPRISE Group of Funds, Inc.

205

DIRECTORS AND OFFICERS

Tax Reporting Information (Unaudited)

The Tax-Exempt Income Fund has designated 100 percent of the net investment income distributions paid monthly by each class of the Fund during its taxable year ended December 31, 2002 as tax-exempt interest dividends for Federal income tax purposes. However, the Fund paid taxable capital gains.

The capital gains distributions EGF paid to shareholders in the year ended December 31, 2002, whether taken in additional shares or cash, were as follows:

Fund	Long-Term Capital Gains
Small Company Value	$	7,611,741
Equity Income		917,597
Global Financial Services		408,784
Tax-Exempt Income		80,887
Total Return		245,352

The information below summarizes those funds which had the following portions of their 2002 ordinary income distributions (located in Box #1 of Form 1099-DIV) qualify for the corporate dividends received deduction:

Deep Value	100%
Equity Income	100%
Global Financial Services	72%

The information below summarizes those funds which had the following portion of their 2002 long-term capital gain distributions (located in Box #2a of Form 1099-DIV) qualify as 5 year gains:

Small Company Value	11.34%
Equity Income	100.00%
Tax-Exempt Income	13.14%

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206

DIRECTORS AND OFFICERS

Directors

Victor Ugolyn

Chairman and Director

Arthur T. Dietz	Arthur Howell
Director	Director
William A. Mitchell, Jr.	Lonnie H. Pope
Director	Director
Samuel J. Foti	Michael I. Roth
Director	Director

Officers

Victor Ugolyn

President and Chief Executive Officer

Phillip G. Goff

Vice President and Chief Financial Officer

Herbert M. Williamson	Catherine R. McClellan
Treasurer and Assistant Secretary	Secretary

Investment Advisor

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Investment Advisor

Enterprise Capital Management, Inc.

Atlanta Financial Center

3343 Peachtree Road, N.E.

Suite 450

Atlanta, GA 30326-1022

Distributor

Enterprise Fund Distributors, Inc.

Atlanta Financial Center

3343 Peachtree Road, N.E.

Suite 450

Atlanta, GA 30326-1022

Telephone: 1-800-432-4320

Custodian

State Street Bank and Trust Company

Boston, MA

Transfer Agent

National Financial Data Services, Inc.

330 W. 9th Street

Kansas City, MO 64105

Telephone: 1-800-368-3527

Independent Accountants

PricewaterhouseCoopers LLP

Philadelphia, PA

Member - Investment Company Institute

1-800-432-4320

www.enterprisefunds.com

This report is not to be used in connection with

the offering of shares of the funds unless accompanied or

preceded by an effective prospectus.

^{©2003 Enterprise Fund Distributors, Inc. AR  CA12.02}