<PAGE>
SEMI-ANNUAL REPORT, June 30, 1997
NAVELLIER PERFORMANCE FUNDS
1 East Liberty, Third Floor
Reno, NV 89501
(800) 887-8671
- --------------------------------------------------------------------------------
August 20, 1997
Dear Shareholder:
For the first two quarters of 1997, the Navellier Mid Cap Growth Portfolio
gained 10.81%, the Navellier Aggressive Growth Portfolio lost (1.71)%, and the
Navellier Aggressive Small Cap Portfolio gained 14.32% (for the period March 17,
1997 to June 30, 1997). During the first two quarters of 1997, the NASDAQ
Composite* was up 11.70%.
During the first half of the year the NASDAQ Composite has been dominated by the
100 largest capitalization NASDAQ stocks, such as Intel and Microsoft, which
have performed spectacularly during
COMPARISON IN CHANGES IN THE VALUE OF
A $10,000 INVESTMENT
<TABLE>
<CAPTION>
EDGAR
REPRESENTATION
OF DATA POINTS
USED IN
PRINTED
GRAPHIC
AGGRESSIVE GROWTH
PORTFOLIO
AGRESSIVE GROWTH RUSSELL 2000 NASDAQ COMPOSITE
<S> <C> <C> <C> <C>
12/31/1995 $10,000.00 $10,000.00 $10,000.00
1/31/1996 $9,639.64 $9,981.33 $10,072.80
2/29/1996 $10,630.63 $10,283.57 $10,455.46
3/31/1996 $11,341.34 $10,468.40 $10,468.29
4/30/1996 $13,033.03 $11,022.57 $11,315.33
5/31/1996 $14,054.05 $11,452.04 $11,818.22
6/30/1996 $13,063.06 $10,970.03 $11,263.06
7/31/1996 $11,191.19 $10,000.95 $10,270.50
8/31/1996 $11,861.86 $10,566.83 $10,849.42
9/30/1996 $12,742.74 $10,962.75 $11,661.30
10/31/1996 $12,162.16 $10,778.55 $11,609.88
11/30/1996 $12,232.23 $11,207.08 $12,285.65
12/31/1996 $12,262.26 $11,476.09 $12,270.63
1/31/1997 $12,452.45 $11,692.57 $13,114.82
2/28/1997 $10,890.89 $11,395.07 $12,441.43
3/31/1997 $10,680.68 $10,841.54 $11,611.68
4/30/1997 $10,540.54 $10,855.46 $11,982.93
5/31/1997 $11,301.30 $12,050.51 $13,309.38
6/30/1997 $12,052.05 $12,544.55 $13,706.20
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MID CAP GROWTH PORTFOLIO
MID CAP GROWTH RUSSELL 2000 NASDAQ COMPOSITE
<S> <C> <C> <C>
11/30/1996 $10,000.00 $10,000.00 $10,000.00
12/31/1996 $10,270.00 $10,240.04 $9,987.78
1/31/1997 $10,460.00 $10,433.20 $10,674.91
2/28/1997 $10,290.00 $10,167.74 $10,126.80
3/31/1997 $9,980.00 $9,673.83 $9,451.42
4/30/1997 $10,270.00 $9,686.26 $9,753.60
5/31/1997 $10,830.00 $10,752.59 $10,833.28
6/30/1997 $11,380.00 $11,193.41 $11,156.27
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AGGRESSIVE SMALL CAP
PORTFOLIO
AGRESSIVE SMALL CAP RUSSELL 2000 NASDAQ COMPOSITE
<S> <C> <C> <C>
3/31/1997 $10,000.00 $10,000.00 $10,000.00
4/30/1997 $10,012.97 $10,012.84 $10,319.72
5/31/1997 $10,843.06 $11,115.13 $11,462.06
6/30/1997 $11,595.33 $11,570.82 $11,803.80
</TABLE>
[PERFORMANCE CHART]
The above charts and performance numbers assume reinvestment of all
distributions.
Please be aware that past performance is no indication of future performance.
The investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than their
original cost.
+ THE DATE OF INCEPTION FOR THE AGGRESSIVE GROWTH PORTFOLIO, MID CAP GROWTH
PORTFOLIO AND AGGRESSIVE SMALL CAP PORTFOLIO WAS DECEMBER 28, 1995, NOVEMBER
26, 1996 AND MARCH 17, 1997, RESPECTIVELY.
<PAGE>
the first half of 1997. Unfortunately, due to the small or mid capitalization
bias for all Navellier mutual funds, we did not own Intel or Microsoft or
hardly any of the top 100 largest capitalization NASDAQ stocks.
Investor optimism became even more bullish during the second quarter of 1997
due to the excellent economic environment. The U.S. economy has cooled off
quickly from its torrid pace in the first quarter (5.9% annual GNP growth).
During the first six months of 1997, wholesale prices have fallen
dramatically, their largest decrease in 45 years. Retail sales fell for three
consecutive months, lending further support to the widespread opinion that the
Federal Reserve Board will not raise interest rates in the near future.
The small-to-mid capitalization sector of the stock market really started to
perk up in May 1997 and has performed spectacularly since then. Prior to May
1997, large capitalization stocks had grossly outperformed small-to-mid
capitalization stocks because investors were in love with liquidity. However,
since May 1997, NASDAQ trading volume has surged and small-to-mid
capitalization stocks are exhibiting tremendous relative strength and should
continue to outperform large capitalization stocks, provided that NASDAQ
trading volume remains strong. One of the reasons why small-to-mid
capitalization stocks performed well in May 1997 was due to the fact that the
breadth and power of the S&P 500 started to deteriorate due to forecasts of
decelerating earnings momentum for the S&P 500. In addition the fundamentals
of the small caps remained more attractive than the large caps as evidenced by
the relatively high price/earnings ratios of the S&P 500 and Dow Industrials.
These forecasts of deteriorating earnings momentum have come to fruition, and
now the S&P 500 is undergoing a correction. We expect that the current
correction will be rotational in nature where one industry group gets "hit"
and another industry group "rallies". Our favorite NASDAQ stocks have been
exhibiting tremendous relative strength while the S&P 500 has been suffering
during the current correction. Most small-to-mid capitalization stocks have
not rallied anywhere near as much as their large capitalization counterparts
during the past year, so we expect that our small-to-mid capitalization mutual
funds will be vulnerable in the upcoming weeks. Furthermore, our small-to-mid
capitalization stocks have superior earnings growth relative to their large
capitalization counterparts and should be inherently more resilient during a
correction. When all the dust settles and the current rotational correction
ends, we expect that many of our favorite small-to-mid capitalization stocks
will emerge as the new stock market leaders. We are especially excited about
the prospects for our small-to-mid capitalization stocks for the remainder of
1997, since on a growth-to-price multiple basis, our stocks are undervalued by
historical standards.
We are proud to announce that on July 15, 1997, Navellier Management Inc.
regained control of the Navellier Aggressive Small Cap Equity Fund (NASCX)
that had been temporarily managed by Massachusetts Financial Services (MFS)
for 120 days. The Fund has resumed trading under its old name and ticker
symbol (NASCX).
Always feel free to contact us if you have any questions or if we can help you
in any way.
Sincerely,
[SIGNATURE]
LOUIS G. NAVELLIER
THIS MATERIAL HAS BEEN PRECEDED BY A NAVELLIER PERFORMANCE FUNDS PROSPECTUS.
* THE NASDAQ COMPOSITE IS AN UNMANAGED INDEX CONSISTING OF APPROXIMATELY 5,500
STOCKS. IT IS CONSIDERED REPRESENTATIVE OF THE STOCK MARKET AS A WHOLE. IT
IS NOT AN INVESTMENT PRODUCT AVAILABLE FOR PURCHASE.
2
<PAGE>
JUNE 30, 1997 (UNAUDITED) THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
AGGRESSIVE GROWTH PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
<C> <S> <C>
MARKET VALUE
SHARES (NOTE 1)
<CAPTION>
- ----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 97.66%
OF TOTAL INVESTMENTS
AEROSPACE -- 2.16%
29,500 Thiokol Corp. $ 2,065,000
------------
APPAREL -- 4.43%
50,000 V.F. Corp. 4,237,500
------------
AUTO PARTS: ORIGINAL EQUIPMENT
MANUFACTURER -- 4.97%
100,000 Masco Tech, Inc. 2,087,500
75,000 Smith (A.O.) Corp. 2,667,188
------------
4,754,688
------------
AUTOMOTIVE AFTERMARKET -- 2.71%
40,000 SPX Corp. 2,592,500
------------
BANKS -- 2.00%
39,600 Northern Trust Corp. 1,915,650
------------
CLOTHING/SHOE/ACCESSORY STORES -- 0.75%
42,600 Paul Harris Stores, Inc.* 713,550
------------
COMPUTER HARDWARE -- 8.65%
20,000 Compaq Computer Corp.* 1,985,000
180,000 Quantum Corp.* 3,656,250
83,200 Western Digital Corp.* 2,631,200
------------
8,272,450
------------
COMPUTER SOFTWARE -- 2.79%
60,000 Manugistics Group, Inc.* 2,670,000
------------
DIVERSIFIED MANUFACTURING -- 4.36%
60,000 Tyco International, Ltd.* 4,173,750
------------
ELECTRONIC DATA PROCESSING
SERVICES -- 3.97%
60,000 Computer Task Group, Inc. 2,235,000
30,000 Keane, Inc.* 1,560,000
------------
3,795,000
------------
ELECTRONIC DISTRIBUTORS -- 1.68%
52,500 Cellstar Corp.* 1,607,812
------------
<CAPTION>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
ELECTRONIC PRODUCTION EQUIPMENT -- 1.67%
50,000 Orbotech, Ltd.* $ 1,593,750
------------
FINANCE COMPANIES -- 1.70%
60,000 Imperial Credit Mortgage Holdings, Inc. 1,627,500
------------
FLUID CONTROLS -- 0.85%
45,000 Gorman Rupp Co. 810,000
------------
FOOD -- 2.48%
40,000 Interstate Bakeries Corp. 2,372,500
------------
HOMEBUILDING -- 1.40%
40,000 Fairfield Communities, Inc.* 1,345,000
------------
INDUSTRIAL SPECIALTIES -- 2.24%
80,000 Premark International, Inc. 2,140,000
------------
INSURANCE -- 1.24%
100,000 Reliance Group Holdings, Inc. 1,187,500
------------
MOTOR VEHICLES -- 1.27%
50,000 Monaco Coach Corp.* 1,212,500
------------
NEWSPAPERS -- 8.07%
50,000 Central Newspapers, Inc. 3,581,250
20,800 Gannett, Inc. 2,054,000
50,000 Scripps (E.W.) Co., Class A 2,081,250
------------
7,716,500
------------
OFFICE EQUIPMENT -- 1.50%
40,000 Herman Miller, Inc. 1,440,000
------------
OIL AND GAS PRODUCTION -- 4.65%
60,000 Ocean Energy, Inc.* 2,775,000
70,000 Swift Energy Co.* 1,671,250
------------
4,446,250
------------
OILFIELD SERVICES/EQUIPMENT -- 4.52%
50,000 Smith International, Inc.* 3,037,500
40,000 Varco International, Inc.* 1,290,000
------------
4,327,500
------------
</TABLE>
* NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
JUNE 30, 1997 (UNAUDITED) THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONTINUED)
AGGRESSIVE GROWTH PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS -- 5.63%
71,250 Medicis Pharmaceuticals Corp.* $ 3,553,594
20,000 Smithkline Beecham, PLC (ADR) 1,832,500
------------
5,386,094
------------
PRINTING -- 4.47%
150,000 Mail-Well, Inc.* 4,275,000
------------
SEMICONDUCTORS AND RELATED -- 8.16%
70,000 Advanced Micro Devices, Inc.* 2,520,000
50,000 IEC Electronics Corp.* 706,250
61,000 Innovex, Inc. 1,776,625
50,000 National Semiconductor Corp.* 1,531,250
50,000 QLogic Corp.* 1,275,000
------------
7,809,125
------------
<CAPTION>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
STEEL -- 3.51%
200,000 National Steel Corp., Class B* $ 3,362,500
------------
TELECOMMUNICATIONS EQUIPMENT -- 2.92%
50,000 Tellabs, Inc.* 2,793,750
------------
TRUCKS -- 2.91%
60,000 PACCAR, Inc. 2,786,250
------------
TOTAL COMMON STOCKS
(COST $81,078,633) 93,429,619
------------
MONEY MARKET FUNDS -- 2.34%
2,235,434 Fund for Government Investors
(Cost $2,235,434) 2,235,434
------------
TOTAL INVESTMENTS -- 100.00%
(COST $83,314,067) $ 95,665,053
------------
------------
</TABLE>
* NON-INCOME PRODUCING.
ADR AMERICAN DEPOSITORY RECEIPTS
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
JUNE 30, 1997 (UNAUDITED) THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
MID CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
<C> <S> <C>
MARKET VALUE
SHARES (NOTE 1)
<CAPTION>
- ------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 96.30%
OF TOTAL INVESTMENTS
AEROSPACE -- 3.06%
2,900 Thiokol Corp. $ 203,000
------------
AIRLINES -- 2.74%
5,200 USAir Group, Inc.* 182,000
------------
APPAREL/FABRIC -- 1.51%
2,100 Jones Apparel Group, Inc.* 100,275
------------
BANKS -- 13.07%
1,300 Commerce Bancshares, Inc. 58,825
2,400 First of America Bank Corp. 109,800
200 First Empire St. Corp. 67,400
3,000 Marshall & Ilsley Corp. 121,875
1,575 Old Kent Financial Corp. 85,050
2,400 Provident Financial Group,
Inc. 102,600
1,000 Republic New York Corp. 107,500
2,900 Star Banc Corp. 122,525
2,000 Wilmington Trust Corp. 91,500
------------
867,075
------------
BUILDING MATERIALS -- 0.95%
800 Vulcan Materials Co. 62,800
------------
BUILDING PRODUCTS -- 1.69%
2,500 American Standard Companies,
Inc.* 111,875
------------
COMPUTER HARDWARE -- 1.91%
4,000 Western Digital Corp.* 126,500
------------
COMPUTER SOFTWARE -- 2.30%
3,200 Compuware Corp.* 152,800
------------
CONTACT DRILLING -- 3.18%
1,800 Ensco International, Inc.* 94,950
5,000 Global Marine, Inc.* 116,250
------------
211,200
------------
CONTAINERS/PACKAGING -- 0.98%
2,100 Owens Illinois, Inc.* 65,100
------------
COSMETICS -- 1.27%
3,000 Alberto Culver Co. 84,000
------------
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
DIVERSIFIED MANUFACTURING -- 2.60%
5,200 Coltec Industries, Inc.* $ 101,400
2,000 US Industries, Inc.* 71,250
------------
172,650
------------
ELECTRONIC DATA PROCESSING SERVICES -- 2.20%
2,800 Keane, Inc.* 145,600
------------
ENERGY -- 1.92%
1,800 AES Corp.* 127,350
------------
FARMING/SEEDS/MILLING -- 1.20%
1,000 DEKALB Genetics Corp. 79,750
------------
FOOD -- 6.37%
2,900 Dean Foods Co. 117,085
6,000 Flowers Industries, Inc. 100,875
2,000 Interstate Bakeries Corp. 118,625
1,400 Smithfield Foods, Inc.* 86,100
------------
422,685
------------
FOREST PRODUCTS -- 1.94%
4,000 Plum Creek Timber Co., LP 128,500
------------
INDUSTRIAL SPECIALTIES -- 2.02%
5,000 Premark International, Inc. 133,750
------------
INSURANCE -- 6.55%
1,000 ACE, Ltd. 73,875
2,000 Conseco, Inc. 74,000
1,100 Exel, Ltd. 58,025
300 Progressive Corp. 26,100
5,200 Reliance Group Holdings, Inc. 61,750
1,000 Torchmark Corp. 71,250
700 Transatlantic Holdings, Inc. 69,475
------------
434,475
------------
METAL FABRICATIONS -- 4.26%
2,100 Evi, Inc.* 88,200
1,000 Precision Castparts Corp. 59,625
3,800 Timken Co. 135,138
------------
282,963
------------
</TABLE>
* NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
JUNE 30, 1997 (UNAUDITED) THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONTINUED)
MID CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
MULTI-SECTOR COMPANIES -- 0.88%
1,400 Crane Co. $ 58,538
------------
NEWSPAPERS -- 4.29%
2,000 Central Newspapers, Inc. 143,250
2,100 McClatchy Newspaper, Inc. 61,688
200 Washington Post Co., Class B 79,600
------------
284,538
------------
OIL/GAS DISTRIBUTORS -- 0.79%
800 Columbia Gas Systems, Inc. 52,200
------------
OILFIELD SERVICES/EQUIPMENT -- 3.85%
2,000 Camco International, Inc. 109,500
2,400 Smith International, Inc.* 145,800
------------
255,300
------------
PAINTS/COATINGS -- 1.16%
2,600 Valspar Corp. 77,025
------------
PAPER -- 2.36%
7,500 Fibermark, Inc.* 156,563
------------
RETAILERS -- 4.15%
2,000 CVS Corp. 102,500
2,500 Dollar General Corp. 93,750
1,710 Safeway, Inc.* 78,874
------------
275,124
------------
SAVINGS BANKS -- 2.98%
1,500 Ahmanson (H.F.) and Co. 64,500
2,000 Greenpoint Financial Corp. 133,125
------------
197,625
------------
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
SEMICONDUCTOR AND RELATED -- 7.18%
3,000 Dallas Semiconductor Corp. $ 117,750
3,000 Jabil Circuit, Inc.* 251,625
3,500 National Semiconductor Corp.* 107,188
------------
476,563
------------
SHOE MANUFACTURING -- 1.37%
3,000 Wolverine World Wide, Inc. 91,125
------------
SOFT DRINKS -- 2.08%
4,200 Panamerican Beverages, Inc.,
Class A 138,075
------------
STEEL -- 1.11%
4,000 Tubos de Acero de Mexico,
S.A. (ADR)* 73,750
------------
TELECOMMUNICATIONS -- 1.19%
2,400 Compania de Telecommunics de
Chile (ADR) 79,200
------------
TRUCKS -- 1.19%
1,700 PACCAR, Inc. 78,944
------------
TOTAL COMMON STOCKS
(COST $5,636,573) 6,388,918
------------
MONEY MARKET FUNDS -- 3.70%
245,747 Fund for Government Investors
(Cost $245,747) 245,747
------------
TOTAL INVESTMENTS -- 100.00%
(COST $5,882,320) $ 6,634,665
------------
------------
</TABLE>
* NON-INCOME PRODUCING.
ADR AMERICAN DEPOSITORY RECEIPTS
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
JUNE 30, 1997 (UNAUDITED) THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
AGGRESSIVE SMALL CAP PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
<C> <S> <C>
MARKET VALUE
SHARES (NOTE 1)
<CAPTION>
- ------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 87.18%
OF TOTAL INVESTMENTS
AEROSPACE -- 2.55%
2,500 Ducommun, Inc.* $ 73,594
3,000 GenCorp, Inc. 69,375
------------
142,969
------------
BANKS -- 2.83%
2,000 Onbancorp, Inc. 102,000
600 Security Capital Corp. 56,700
------------
158,700
------------
BUILDING PRODUCTS -- 6.05%
5,000 American Woodmark Corp. 78,125
11,000 Berger Holding, Inc.* 37,125
2,727 Falcon Building Products,
Inc.* 48,404
2,000 Interface, Inc., Class A 44,250
3,000 Southdown, Inc. 130,875
------------
338,779
------------
CATALOG/SPECIALTY DISTRIBUTION -- 0.94%
2,000 New England Business Service 52,625
------------
CLOTHING/SHOE/ACCESSORY STORES -- 2.36%
3,000 Goody's Family Clothing,
Inc.* 82,125
2,000 Piercing Pagoda, Inc.* 50,250
------------
132,375
------------
COAL MINING -- 1.67%
4,000 Zeigler Coal Holding Co. 93,500
------------
COMMERCIAL SERVICES -- 4.47%
2,800 Computer Learning Centers,
Inc.* 117,600
1,000 Learning Tree International,
Inc.* 44,375
4,400 Market Facts, Inc. 53,350
3,400 Warrantech Corp.* 35,275
------------
250,600
------------
COMPUTER SOFTWARE -- 1.59%
2,000 Manugistics Group, Inc.* 89,000
------------
CONTRACT DRILLING -- 0.81%
1,000 Patterson Energy, Inc.* 45,375
------------
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
DIVERSIFIED MANUFACTURING -- 1.06%
2,000 Barnes Group, Inc. $ 59,250
------------
ELECTRONIC DATA PROCESSING SERVICES -- 2.66%
4,000 Computer Task Group, Inc. 149,000
------------
ELECTRICAL PRODUCTS -- 5.21%
4,000 AFC Cable Systems, Inc.* 108,000
4,400 Encore Wire Corp.* 134,200
3,000 Magnetek, Inc.* 49,875
------------
292,075
------------
ELECTRONIC COMPONENTS -- 5.07%
4,000 Innovex, Inc. 116,500
3,000 Plexus Corp.* 167,437
------------
283,937
------------
ENVIRONMENTAL SERVICES -- 2.73%
5,200 Barringer Technologies, Inc.* 78,000
4,700 Eastern Environmental
Services 75,200
------------
153,200
------------
FINANCE COMPANIES -- 2.83%
2,000 Imperial Credit Mortgage
Holdings, Inc. 54,250
6,000 Pilgrim America Capital
Corp.* 104,250
------------
158,500
------------
FOOD -- 2.45%
2,000 Morningstar Group, Inc.* 58,750
8,000 Reliv International, Inc. 52,000
1,500 Tasty Baking Co. 26,250
------------
137,000
------------
HEALTHCARE -- 1.04%
3,900 Counsel Corp.* 58,013
------------
HEAVY MACHINERY/CONSTRUCTION -- 2.53%
2,400 Gardner Denver Machinery,
Inc.* 71,400
1,500 Manitowoc, Inc. 70,125
------------
141,525
------------
</TABLE>
* NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
JUNE 30, 1997 (UNAUDITED) THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONTINUED)
AGGRESSIVE SMALL CAP PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
HOME FURNISHINGS -- 2.36%
8,000 O'Sullivan Industries
Holdings, Inc.* $ 132,500
------------
INDUSTRIAL MACHINERY/COMPONENTS -- 1.25%
2,000 Lincoln Electric Co. 70,000
------------
INSURANCE -- 3.66%
3,000 Hooper Holmes, Inc. 68,810
4,000 Penn American Group, Inc. 58,500
4,000 Presidential Life Corp. 77,500
------------
204,810
------------
INSURERS -- 1.96%
2,500 Enhance Financial Services
Group 109,688
------------
INVESTMENT BANKERS/BROKER SERVICES -- 1.08%
2,000 Duff & Phelps Credit Rating
Co. 60,750
------------
MANUFACTURED HOUSING -- 0.92%
4,000 Modtech, Inc.* 51,500
------------
OIL AND GAS PRODUCTION -- 3.14%
5,000 Clayton Williams Energy,
Inc.* 56,875
3,000 McFarland Energy, Inc.* 54,938
3,500 Snyder Oil Corp. 64,313
------------
176,126
------------
OILFIELD SERVICES/EQUIPMENT -- 2.95%
15,000 Bolt Technology Corp.* 75,000
3,000 Key Energy Group, Inc.* 53,438
8,000 Superior Energy Services,
Inc.* 37,000
------------
165,438
------------
PAINTS/COATINGS -- 0.98%
1,000 Fuller (H.B.) Co. 55,000
------------
PAPER -- 2.24%
6,000 Fibermark, Inc.* 125,250
------------
PRINTING -- 1.53%
3,000 Mail-Well, Inc.* 85,500
------------
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
RETAILERS -- 1.95%
1,800 MacFrugal's Bargains
Closeouts* $ 49,050
3,000 Tuesday Morning Corp.* 60,375
------------
109,425
------------
SAVINGS BANKS -- 4.91%
2,500 Affiliated Community Bancorp,
Inc. 58,750
400 Citfed Bancorp, Inc. 15,500
2,000 New York Bancorp, Inc. 69,500
3,000 Norwich Financial Corp. 64,875
2,000 St. Paul Bancorp, Inc. 66,250
------------
274,875
------------
SEMICONDUCTORS AND RELATED -- 3.64%
1,500 Dallas Semiconductor Corp. 58,875
1,000 Jabil Circuit, Inc.* 83,875
2,400 Qlogic Corp.* 61,200
------------
203,950
------------
SPECIALTY CHEMICALS -- 1.10%
1,000 Petrolite Corp. 61,875
------------
TELEPHONE/COMMUNICATIONS -- 0.92%
3,000 U.S. Long Distance Corp.* 51,750
------------
TEXTILES -- 1.21%
8,000 Dyersburg Corp. 68,000
------------
TOBACCO -- 1.79%
3,000 Mafco Consolidated Group,
Inc.* 100,500
------------
TRUCKING -- 0.74%
1,300 Mark VII, Inc.* 41,600
------------
TOTAL COMMON STOCKS
(COST $4,331,402) 4,884,960
------------
MONEY MARKET FUNDS -- 12.82%
718,335 Fund for Government Investors
(Cost $718,335) 718,335
------------
TOTAL INVESTMENTS -- 100.00%
(COST $5,049,737) $ 5,603,295
------------
------------
</TABLE>
* NON-INCOME PRODUCING.
ADR AMERICAN DEPOSITORY RECEIPTS
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
JUNE 30, 1997 (UNAUDITED) THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AGGRESSIVE MID CAP AGGRESSIVE
GROWTH GROWTH SMALL CAP
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- -----------
<S> <C> <C> <C>
ASSETS
Securities at Cost..................................................... $ 83,314,067 $ 5,882,320 $ 5,049,737
------------ ----------- -----------
------------ ----------- -----------
Securities at Value (Note 1)........................................... $ 95,665,053 $ 6,634,665 $ 5,603,295
Receivable for Securities Sold......................................... 2,371,348 -- --
Receivable for Shares Sold............................................. 32,029 816 18,458
Interest Receivable.................................................... 14,285 827 1,040
Dividends Receivable................................................... 55,294 3,705 1,130
Unamortized Organizational Costs (Note 1).............................. 87,990 -- --
------------ ----------- -----------
Total Assets......................................................... 98,225,999 6,640,013 5,623,923
------------ ----------- -----------
LIABILITIES
Payable for Shares Redeemed............................................ 157,969 3,485 --
Payable for Securities Purchased....................................... 1,817,456 -- 344,081
Investment Advisory Fee Payable (Note 2)............................... 97,067 6,609 4,231
Administrative Fee Payable (Note 2).................................... 19,413 1,322 920
Distribution Plan Fee Payable (Note 4)................................. 19,413 1,322 --
Other Payables and Accrued Expenses.................................... 19,413 1,322 552
Organizational Expenses Payable to Adviser (Note 1).................... 87,990 -- --
------------ ----------- -----------
Total Liabilities.................................................... 2,218,721 14,060 349,784
------------ ----------- -----------
NET ASSETS............................................................... $ 96,007,278 $ 6,625,953 $ 5,274,139
------------ ----------- -----------
------------ ----------- -----------
SHARES OUTSTANDING....................................................... 7,972,976 582,370 294,943
------------ ----------- -----------
------------ ----------- -----------
NET ASSET VALUE PER SHARE................................................ $12.04 $11.38 $17.88
------ ----------- -----------
------ ----------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
AGGRESSIVE MID CAP AGGRESSIVE
GROWTH GROWTH SMALL CAP
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------ ------------
FOR THE
FOR THE SIX PERIOD ENDED
MONTHS ENDED JUNE 30,
JUNE 30, 1997 1997*
(UNAUDITED) (UNAUDITED)
---------------------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest (Note 1)................ $ 98,044 $ 9,351 $ 5,835
Dividends (Note 1)............... 276,303 21,294 3,812
------------- ------------ ------------
Total Investment Income........ 374,347 30,645 9,647
------------- ------------ ------------
EXPENSES
Investment Advisory Fee (Note
2)............................. 545,939 26,120 9,299
Administrative Fee (Note 2)...... 109,188 5,224 2,022
Distribution Plan Fees (Note
4)............................. 109,188 5,224 --
Transfer Agent and Custodian Fee
(Note 3)....................... 92,603 16,171 13,732
Registration Fees................ 36,566 11,618 24,602
Shareholder Reports and
Notices........................ 27,147 1,165 416
Trustees' Fees................... 5,000 5,000 5,000
Organizational Expense (Note
1)............................. 12,600 -- --
Insurance........................ 11,849 649 402
Audit Fees....................... 11,319 1,431 --
Other Expenses................... 711 -- --
------------- ------------ ------------
Total Expenses................. 962,110 72,602 55,473
Less Expenses Reimbursed by
Investment Adviser
(Note 2)..................... (88,608) (30,810) (42,939)
------------- ------------ ------------
Net Expenses................. 873,502 41,792 12,534
------------- ------------ ------------
NET INVESTMENT LOSS................ (499,155) (11,147) (2,887)
------------- ------------ ------------
Net Realized Gain (Loss) on
Investment Transactions.......... (2,028,771) (114,852) 3,421
Net Change in Unrealized
Appreciation of Investments...... 2,522,669 716,901 553,558
------------- ------------ ------------
NET GAIN ON INVESTMENTS............ 493,898 602,049 556,979
------------- ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS....................... $ (5,257) $ 590,902 $ 554,092
------------- ------------ ------------
------------- ------------ ------------
</TABLE>
*FROM COMMENCEMENT OF OPERATIONS MARCH 17, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH MID CAP GROWTH AGGRESSIVE SMALL CAP
PORTFOLIO PORTFOLIO PORTFOLIO
----------------------------- --------------------------------- --------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE PERIOD FOR THE PERIOD
MONTHS ENDED ENDED MONTHS ENDED ENDED ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997**
(UNAUDITED) 1996 (UNAUDITED) 1996* (UNAUDITED)
------------- ------------- -------------- ---------------- --------------------
<S> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Income (Loss).......... $ (499,155) $ (927,543) $ (11,147) $ 772 $ (2,887)
Net Realized Gain (Loss) on Investment
Transactions........................ (2,028,771) (12,055,596) (114,852) -- 3,421
Net Change in Unrealized Appreciation
of Investments...................... 2,522,669 9,828,401 716,901 35,444 553,558
------------- ------------- -------------- ---------------- -----------
Net Increase (Decrease) in Net
Assets Resulting from
Operations........................ (5,257) (3,154,738) 590,902 36,216 554,092
------------- ------------- -------------- ---------------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Investment Income............ -- -- -- (772) --
From Net Realized Capital Gains....... -- -- -- -- --
------------- ------------- -------------- ---------------- -----------
Total Distributions to
Shareholders...................... -- -- -- (772) --
------------- ------------- -------------- ---------------- -----------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares..... 60,460,545 172,216,916 5,486,462 1,614,544 5,460,401
Reinvestment of Distributions......... -- -- -- 772 --
Cost of Shares Redeemed............... (59,694,298) (74,115,827) (1,093,431) (8,740) (740,354)
------------- ------------- -------------- ---------------- -----------
Net Increase in Net Assets Resulting
from Share Transactions........... 766,247 98,101,089 4,393,031 1,606,576 4,720,047
------------- ------------- -------------- ---------------- -----------
TOTAL INCREASE IN NET ASSETS........ 760,990 94,946,351 4,983,933 1,642,020 5,274,139
NET ASSETS -- Beginning of Period....... 95,246,288 299,937 1,642,020 -- --
------------- ------------- -------------- ---------------- -----------
NET ASSETS -- End of Period............. $ 96,007,278 $ 95,246,288 $ 6,625,953 $1,642,020 $5,274,139
------------- ------------- -------------- ---------------- -----------
------------- ------------- -------------- ---------------- -----------
SHARES
Sold.................................. 5,368,655 13,842,072 527,705 160,724 340,583
Issued in Reinvestment of
Distributions....................... -- -- -- 75 --
Redeemed.............................. (5,169,399) (6,098,372) (105,284) (851) (45,640)
------------- ------------- -------------- ---------------- -----------
Net Increase in Shares.............. 199,256 7,743,700 422,421 159,948 294,943
------------- ------------- -------------- ---------------- -----------
------------- ------------- -------------- ---------------- -----------
</TABLE>
*FROM COMMENCEMENT OF OPERATIONS NOVEMBER 26, 1996.
**FROM COMMENCEMENT OF OPERATIONS MARCH 17, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
PORTFOLIO
------------------------------------------------
FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED PERIOD ENDED
JUNE 30, 1997 DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1996 1995*
---------------- ------------- -------------
PER SHARE OPERATING PERFORMANCE:
<S> <C> <C> <C>
Net Asset Value -- Beginning of
Period.............................. $12.25 $9.99 $10.00
------- ------------- -------------
Income from Investment Operations:
Net Investment Income (Loss)........ (0.063) (0.120) 0.002
Net Realized and Unrealized Gains
(Losses) on Securities............ (0.147) 2.380 (0.012)
------- ------------- -------------
Total from Investment
Operations...................... (0.210) 2.260 (0.010)
------- ------------- -------------
Distributions to Shareholders:
From Net Investment Income.......... -- -- --
From Net Realized Capital Gains..... -- -- --
------- ------------- -------------
Total Distributions to
Shareholders.................... -- -- --
------- ------------- -------------
Net Increase (Decrease) in Net Asset
Value............................... (0.21) 2.26 (0.01)
------- ------------- -------------
Net Asset Value -- End of Period...... $12.04 $12.25 $9.99
------- ------------- -------------
------- ------------- -------------
TOTAL INVESTMENT RETURN................. (1.71)%(A) 22.62% (0.10)%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 2.00%(B) 2.00% 2.00%(B)
Expenses Before Reimbursement (Note
2).................................. 2.20%(B) 2.22% 27.25%(B)
Net Investment Income (Loss).......... (1.14)%(B) (1.57)% 2.59%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 138.4% 169.0% --
Net Assets at End of Period (000's
omitted)............................ $96,007 $95,246 $300
Number of Shares Outstanding at End of
Period (000's omitted).............. 7,973 7,774 30
Average Commission Rate Paid (C)...... $0.0379 $0.0389 --
</TABLE>
- ------------------------------------------------------
(A) Total returns for periods of less than one year are not annualized.
(B) Annualized.
(C) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged. This amount may vary from period to period
and fund to fund depending on the mix of trades executed in various markets
where trading practices and commission rate structures may differ.
* FROM COMMENCEMENT OF OPERATIONS DECEMBER 28, 1995.
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
AGGRESSIVE
MID CAP GROWTH SMALL CAP
PORTFOLIO PORTFOLIO
-------------------------------- ---------------
FOR THE FOR THE FOR THE
SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997**
(UNAUDITED) 1996* (UNAUDITED)
---------------- ------------- ---------------
PER SHARE OPERATING PERFORMANCE:
<S> <C> <C> <C>
Net Asset Value -- Beginning of Period........ $10.27 $10.00 $15.64
------- ------------- -------
Income from Investment Operations:
Net Investment Income (Loss)................ (0.019) 0.005 (0.010)
Net Realized and Unrealized Gains on
Securities................................ 1.129 0.270 2.250
------- ------------- -------
Total from Investment Operations.......... 1.110 0.275 2.240
------- ------------- -------
Distributions to Shareholders:
From Net Investment Income.................. -- (0.005) --
From Net Realized Capital Gains............. -- -- --
------- ------------- -------
Total Distributions to Shareholders....... -- (0.005) --
------- ------------- -------
Net Increase in Net Asset Value............... 1.11 0.27 2.24
------- ------------- -------
Net Asset Value -- End of Period.............. $11.38 $10.27 $17.88
------- ------------- -------
------- ------------- -------
TOTAL INVESTMENT RETURN......................... 10.81%(A) 2.75%(A) 14.32%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note 2)......... 2.00%(B) 2.00%(B) 1.55%(B)
Expenses Before Reimbursement (Note 2)........ 3.47%(B) 113.02%(B) 6.90%(B)
Net Investment Income (Loss).................. (0.53)%(B) 0.87%(B) (0.36)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate....................... 89.9% -- 26.0%
Net Assets at End of Period (000's omitted)... $ 6,626 $ 1,642 $ 5,274
Number of Shares Outstanding at End of Period
(000's omitted)............................. 582 160 295
Average Commission Rate Paid (C).............. $0.0316 $0.0300 $0.0368
</TABLE>
- -----------------------------------------------
(A) Total returns for periods of less than one year are not annualized.
(B) Annualized.
(C) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged. This amount may vary from period to period
and fund to fund depending on the mix of trades executed in various markets
where trading practices and commission rate structures may differ.
* FROM COMMENCEMENT OF OPERATIONS NOVEMBER 26, 1996.
** FROM COMMENCEMENT OF OPERATIONS MARCH 17, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
JUNE 30, 1997 (UNAUDITED) THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies
The Navellier Performance Funds (the "Fund") is registered with the
Securities and Exchange Commission under the Investment Company Act of 1940, as
amended, (the "Act") as an open-end investment company which offers its shares
in a series of no-load non-diversified and diversified portfolios. The Fund is
authorized to issue an unlimited number of shares of capital stock with no
stated par value. The Fund presently consists of three separate portfolios: the
Aggressive Growth Portfolio, a non-diversified open-end management company
portfolio, the Mid Cap Growth Portfolio, a diversified open-end management
company portfolio, and the Aggressive Small Cap Portfolio, a diversified
open-end management company portfolio. Each portfolio has its own investment
objective. The financial statements have been prepared in conformity with
generally accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements. The following
is a summary of significant accounting policies which the Fund follows:
(a) Listed securities are valued at the last sales price of the New York
Stock Exchange and other major exchanges. Over-the-Counter securities are
valued at the last sales price. If market quotations are not readily
available, the Board of Trustees will value the Fund's securities in good
faith. The Trustees will periodically review this method of valuation and
recommend changes which may be necessary to assure that the Fund's instruments
are valued at fair value.
(b) Security transactions are recorded on the trade date (the date the
order to buy or sell is executed). Interest income is accrued on a daily
basis. Dividend income is recorded on the ex-dividend date. Realized gains and
losses from securities transactions are computed on an identified cost basis.
(c) Dividends from net investment income are declared and paid annually.
Dividends are reinvested in additional shares unless shareholders request
payment in cash. Net capital gains, if any, are distributed annually.
(d) The Fund intends to comply with the provisions of the Internal Revenue
Code applicable to regulated investment companies and will distribute all net
investment income to its shareholders. Therefore, no Federal income tax
provision is required.
(e) Organizational expenses of the Fund totaling $126,000 are being
deferred and amortized over 60 months beginning with the public offering of
shares of the Aggressive Growth Portfolio. Any redemption by an initial
investor during the amortization period will be reduced by a pro rata portion
of any of the unamortized organization expenses. Such proration is to be
calculated by dividing the number of initial shares redeemed by the number of
initial shares outstanding at the date of redemption. At June 30, 1997,
unamortized organization costs were $87,990.
2. Investment Advisory Fees and Other Transactions With Affiliates
Investment advisory services are provided by Navellier Management, Inc. (the
"Adviser"). Under an agreement with the Adviser, the Fund pays a fee at the
annual rate of 1.25% of the daily net asset of the Aggressive Growth Portfolio
and the Mid Cap Growth Portfolio, and 1.15% of the daily net assets of the
Aggressive Small Cap Portfolio. The Adviser receives an annual fee equal to
0.25% of the Funds average daily net assets in connection with the rendering of
services under the administrative services agreement and is reimbursed by the
Fund for operating expenses incurred on behalf of the Fund. An officer and
trustee of the Fund is also an officer and director of the Adviser.
Under an agreement between the Fund and the Adviser related to payment of
operating expenses, the Adviser has reserved the right to seek reimbursement for
the past, present and future operating expenses of the Fund paid by the Adviser,
at any time upon notice to the Fund. At December 31, 1996, the Adviser
voluntarily agreed not to seek future reimbursement of all unreimbursed past
expense incurred on behalf of the Fund. During the six months ended June 30,
1997, the Adviser paid operating expenses of the Aggressive Growth Portfolio,
Mid Cap Growth Portfolio and
14
<PAGE>
JUNE 30, 1997 (UNAUDITED) THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
Aggressive Small Cap Portfolio totaling $197,795, $36,034 and $44,152,
respectively. Under the operating expense agreement, the Adviser requested, and
the Aggressive Growth Portfolio, the Mid Cap Growth Portfolio and the Aggressive
Small Cap Portfolio reimbursed, $109,187, $5,224 and $1,213, respectively, of
such expenses.
Navellier Securities Corp. (the "Distributor") acts as the Fund's
Distributor and is registered as a broker-dealer under the Securities and
Exchange Act of 1934. The Distributor, which is the principal underwriter of the
Fund's shares, renders its services to the Fund pursuant to a distribution
agreement. An officer and trustee of the Fund is also an officer and director of
the Distributor.
The Fund pays each of its Trustees not affiliated with the Adviser $7,500
annually. For the six months ended June 30, 1997, Trustees' fees totaled
$15,000.
3. Transfer Agent and Custodian
Rushmore Trust and Savings, FSB ("Rushmore Trust"), provides transfer
agency, dividend disbursing and other shareholder services to the Fund. In
addition, Rushmore Trust serves as custodian of the Fund's assets. Fees paid to
Rushmore Trust are based upon a fee schedule approved by the Board of Trustees.
4. Distribution Plan
The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Act, whereby it reimburses the Distributor or others in an amount not
to exceed 0.25% per annum of the average daily net assets of the Aggressive
Growth Portfolio and the Mid Cap Growth Portfolio for expenses incurred in the
promotion and distribution of shares of the portfolio. These expenses include,
but are not limited to, the printing of prospectuses, statements of additional
information, and reports used for sales purposes, expenses of preparation of
sales literature and related expenses (including Distributor personnel),
advertisements and other distribution-related expenses, including a prorated
portion of the Distributor's overhead expenses attributable to the distribution
of shares. Such payments are made monthly. The 12b-1 fee includes, in addition
to promotional activities, the amount the Fund may pay to the Distributor or
others as a service fee to reimburse such parties for personal services provided
to shareholders of the Fund and/or the maintenance of shareholder accounts. Such
Rule 12b-1 fees are made pursuant to the Plan and distribution agreements
entered into between such service providers and the Distributor or the Fund
directly.
5. Securities Transactions
For the six months ended June 30, 1997, purchases and sales (including
maturities) of securities (excluding short-term securities) were as follows:
<TABLE>
<CAPTION>
AGGRESSIVE MID CAP AGGRESSIVE
GROWTH GROWTH SMALL CAP
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ----------- -----------
<S> <C> <C> <C>
Purchases............................................................. $ 116,443,657 $ 7,925,345 $ 5,190,717
------------- ----------- -----------
------------- ----------- -----------
Sales................................................................. $ 116,123,851 $ 3,513,566 $ 862,735
------------- ----------- -----------
------------- ----------- -----------
</TABLE>
15
<PAGE>
JUNE 30, 1997 (UNAUDITED) THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
6. Net Unrealized Appreciation/Depreciation of Investments
Net unrealized appreciation as of June 30, 1997, based on the cost for
Federal income tax purposes is as follows:
<TABLE>
<CAPTION>
AGGRESSIVE MID CAP AGGRESSIVE
GROWTH GROWTH SMALL CAP
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- -----------
<S> <C> <C> <C>
Gross Unrealized Appreciation.......................................... $ 13,897,158 $ 772,710 $ 590,585
Gross Unrealized Depreciation.......................................... (1,546,172) (20,365) (37,027)
------------ ----------- -----------
Net Unrealized Appreciation............................................ $ 12,350,986 $ 752,345 $ 553,558
------------ ----------- -----------
------------ ----------- -----------
Cost of Investments for Federal Income Tax Purposes.................... $ 83,314,067 $ 5,882,320 $ 5,049,737
------------ ----------- -----------
------------ ----------- -----------
</TABLE>
7. Net Assets
At June 30, 1997, net assets consisted of the following:
<TABLE>
<CAPTION>
AGGRESSIVE MID CAP AGGRESSIVE
GROWTH GROWTH SMALL CAP
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ----------- -----------
<S> <C> <C> <C>
Paid-in-Capital........................................................ $ 98,239,814 $ 5,999,607 $ 4,720,047
Undistributed Net Investment Loss...................................... (499,155) (11,147) (2,887)
Accumulated Net Realized Gain (Loss) on Investments.................... (14,084,367) (114,852) 3,421
Net Unrealized Appreciation of Investments............................. 12,350,986 752,345 553,558
------------- ----------- -----------
NET ASSETS............................................................. $ 96,007,278 $ 6,625,953 $ 5,274,139
------------- ----------- -----------
------------- ----------- -----------
</TABLE>
8. Federal Income Tax
Permanent differences between tax and financial reporting of net investment
income and realized gains/losses are reclassified to paid-in-capital. As of
December 31, 1996, net investment losses were reclassified to paid-in-capital as
follows:
<TABLE>
<CAPTION>
AGGRESSIVE MID CAP AGGRESSIVE
GROWTH GROWTH SMALL CAP
PORTFOLIO PORTFOLIO PORTFOLIO
------------ --------- -----------
<S> <C> <C> <C>
Reduction of paid-in-capital.............................................. $ 927,522 -- --
</TABLE>
At December 31, 1996, for Federal income tax purposes, the following Funds
had capital loss carryovers which may be applied against future net taxable
realized gains of each succeeding year until the earlier of its utilization or
its expiration:
<TABLE>
<CAPTION>
AGGRESSIVE MID CAP AGGRESSIVE
GROWTH GROWTH SMALL CAP
EXPIRES DECEMBER 31, PORTFOLIO PORTFOLIO PORTFOLIO
- -------------------------------------------------------------------------- ------------ --------- -----------
<S> <C> <C> <C>
2004...................................................................... $ 11,993,069 -- --
</TABLE>
16
<PAGE>
[PICTURE]
NAVELLIER
PERFORMANCE FUNDS
SEMI-ANNUAL REPORT
JUNE 30, 1997
NAVELLIER OFFICES:
ONE EAST LIBERTY THIRD FLOOR
RENO, NEVADA 89501
800-887-8671 P.S.T.
CUSTODIAN & TRANSFER AGENT:
RUSHMORE TRUST AND SAVINGS, FSB
4922 FAIRMONT AVENUE
BETHESDA, MD 20814
800-622-1386 E.S.T.
