June 26, 2002 — Enterprise Capital Management plans to eliminate Enterprise Grp Global Technology Fund/A (EIIAX) by merging it into Enterprise Grp Internet Fund/A (EIFAX).
The Global Technology fund has been unable to “attract significant assets,” Enterprise said in a regulatory filing. The fund, which was closed to new investors last month in connection with the proposed merger, currently has total assets of about $6 million, compared to assets of $76.2 million in the Internet fund, Enterprise said.
Following the merger, the Internet fund, which currently invests mostly in Internet and related companies, would primarily buy technology and related stocks, and would be renamed the Technology fund. The reorganization is subject to shareholder approval.
The Global Technology fund was down 23.4% this year after losing 47.4% last year. The Internet fund lost 28.5% through May and was down 33.9% in 2001. Both funds are managed by Dan Chung, the chief investment officer of Fred Alger Management Inc., and Fred Alger, the firm’s chairman and president.
As reported last July, Enterprise changed the name of its ailing Enterprise International Internet fund to Enterprise Global Technology fund and gave the fund a broader mandate to invest in both foreign and domestic issues.
ABALX), which netted, $970 million, and the Growth Fund of America/A (AGTHX), which took in $869 million.